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AMTRAN Interim / Quarterly Report 2024

Dec 11, 2024

52121_rns_2024-12-11_d0685fc6-8b65-411a-b41a-0cbead580927.pdf

Interim / Quarterly Report

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AMTRAN TECHNOLOGY CO., LTD. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS’ REVIEW REPORT SEPTEMBER 30, 2024 AND 2023

For the convenience of readers and for information purpose only, the auditors’ report and the accompanying financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. In the event of any discrepancy between the English version and the original Chinese version or any differences in the interpretation of the two versions, the Chinese-language auditors’ report and financial statements shall prevail.

~1~

AMTRAN TECHNOLOGY CO., LTD.

SEPTEMBER 30, 2024 AND 2023 CONSOLIDATED FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS’ REVIEW REPORT TABLE OF CONTENTS

Contents Page

1. Cover Page 1
2. Table of Contents 2 ~ 3
3. Independent Auditors’ Review Report 4 ~ 5
4. Consolidated Balance Sheets 6 ~ 7
5. Consolidated Statements of Comprehensive Income 8 ~ 9
6. Consolidated Statements of Changes in Equity 10
7. Consolidated Statements of Cash Flows 11 ~ 12
8. Notes to the Consolidated Financial Statements 13 ~ 73
(1)
HISTORY AND ORGANISATION		 13
(2)
THE DATE OF AUTHORISATION FOR ISSUANCE OF THE		 13
CONSOLIDATED FINANCIAL STATEMENTS AND
PROCEDURES FOR AUTHORISATION
(3)
APPLICATION OF NEW STANDARDS, AMENDMENTS AND		 13 ~ 14
INTERPRETATIONS
(4)
SUMMARY OF MATERIAL ACCOUNTING POLICIES		 15 ~ 21
(5)
CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND		 22

~2~

Contents Page

KEY SOURCES OF ASSUMPTION UNCERTAINTY
(6) DETAILS OF SIGNIFICANT ACCOUNTS 23 ~ 53
(7) RELATED PARTY TRANSACTIONS 54 ~ 55
(8) PLEDGED ASSETS 56
(9) SIGNIFICANT CONTINGENT LIABILITIES AND 56 ~ 57
UNRECOGNISED CONTRACT COMMITMENTS
(10) SIGNIFICANT DISASTER LOSS 57
(11) SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE 57
(12) OTHERS 57 ~ 70
(13) SUPPLEMENTARY DISCLOSURES 70 ~ 71
(14) SEGMENT INFORMATION 71 ~ 73

~3~

INDEPENDENT AUDITORS’ REVIEW REPORT TRANSLATED FROM CHINESE

To the Board of Directors and Shareholders of AMTRAN TECHNOLOGY CO., LTD.

Introduction

We have reviewed the accompanying consolidated balance sheets of AMTRAN TECHNOLOGY CO., LTD. AND SUBSIDIARIES (the “Group”) as at September 30, 2024 and 2023, and the related consolidated statements of comprehensive income for the three months and nine months then ended, as well as the consolidated statements of changes in equity and of cash flows for the nine months then ended, and notes to the consolidated financial statements, including a summary of material accounting policies. Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with “Regulations Governing the Preparation of Financial Reports by Securities Issuers” and International Accounting Standard 34, “Interim Financial Reporting” as endorsed by the Financial Supervisory Commission. Our responsibility is to express a conclusion on these consolidated financial statements based on our reviews.

Scope of Review

We conducted our reviews in accordance with the Statement of Auditing Standards No. 65 “Review of Financial Information Performed by the Independent Auditor of the Entity” in the Republic of China. A review of consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our reviews and the reports of other independent auditors, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position

~4~

of the Group as at September 30, 2024 and 2023, and of its consolidated financial performance for the three months and nine months then ended and its consolidated cash flows for the nine months then ended in accordance with “Regulations Governing the Preparation of Financial Reports by Securities Issuers” and International Accounting Standard 34, “Interim Financial Reporting” as endorsed by the Financial Supervisory Commission.

Other matter

We did not review the financial statements of certain consolidated subsidiaries. Those financial statements were reviewed by other independent auditors, whose reports thereon have been furnished to us, and our conclusion expressed herein, insofar as it relates to the amounts included in the financial statements was based solely on the review reports of other independent auditors. Total assets of these subsidiaries amounted to NT$481,604 thousand and NT$437,142 thousand, both constituting 2% of the consolidated total assets as at September 30, 2024 and 2023 respectively, and total operating revenues amounted to NT$8,311 thousand, (NT$3,981) thousand, NT$62,660 thousand and NT$33,344 thousand, constituting 4.2%, (2.5%), 5.1% and 5.5% of the consolidated total operating revenues for the three months and nine months then ended, respectively.

For and on Behalf of PricewaterhouseCoopers, Taiwan November 7, 2024

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

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

~5~

AMTRAN TECHNOLOGY CO., LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS SEPTEMBER 30, 2024, DECEMBER 31, 2023 AND SEPTEMBER 30, 2023

(Expressed in thousands of New Taiwan dollars)

Assets Notes September 30, 2024
AMOUNT
%
$
4,505,874 20
1,183,453
5
193,164
1
2,565,782 11
5,658,178 25
119,445
1
80,267
-
-
-
3,192,729 14
306,794
1
1,904
-
17,807,590 78
645,895
3
2,380,790 10
381,706
2
576,705
3
23,753
-
264,177
1
763,319
3
5,036,345 22
$
22,843,935 100		 December 31, 2023
AMOUNT
%
$
3,789,402
19
2,299,371
11
184,435
1
3,403,150
17
3,434,040
17
156,008
1
42,063
-
36,599
-
2,326,106
11
150,049
1
1,811
-
15,823,034
78
614,322
3
2,357,731
11
369,302
2
585,073
3
29,812
-
199,558
1
374,301
2
4,530,099
22
$
20,353,133
100		 September 30, 2023 September 30, 2023
AMOUNT
$
4,505,874
1,183,453
193,164
2,565,782
5,658,178
119,445
80,267
-
3,192,729
306,794
1,904
17,807,590
645,895
2,380,790
381,706
576,705
23,753
264,177
763,319
5,036,345
$
22,843,935		 AMOUNT
$
4,104,532
2,814,954
1,869
2,514,223
4,246,770
80,063
80,591
-
2,679,681
169,099
-
16,691,782
628,040
2,378,475
389,785
585,551
27,454
207,637
237,294
4,454,236
$
21,146,018		 %
Current assets
1100
Cash and cash equivalents
1110
Financial assets at fair value
through profit or loss - current
1120
Current financial assets at fair
value through other
comprehensive income
1136
Current financial assets at
amortised cost
1170
Accounts receivable, net
1180
Accounts receivable - related
parties
1200
Other receivables
1220
Current tax assets
130X
Inventory
1410
Prepayments
1470
Other current assets
11XX
Total current assets
Non-current assets
1550
Investments accounted for
under equity method
1600
Property, plant and equipment
1755
Right-of-use assets
1760
Investment property - net
1780
Intangible assets
1840
Deferred income tax assets
1900
Other non-current assets
15XX
Total non-current assets
1XXX
Total assets		 6(1)
6(2)
6(3)
6(1)
6(4)
7
6(7)
6(5)
6(6)
6(1) and 8
6(7)
6(8) and 8
6(9)
6(10)
6(11)
6(1)(7) and 8		 20
13
-
12
20
-
-
-
13
1
-
79
3
11
2
3
-
1
1
21
100

(Continued)

~6~

AMTRAN TECHNOLOGY CO., LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS SEPTEMBER 30, 2024, DECEMBER 31, 2023 AND SEPTEMBER 30, 2023

(Expressed in thousands of New Taiwan dollars)

Liabilities and Equity Notes September 30, 2024
December 31, 2023
September 30, 2023
AMOUNT
%
AMOUNT
%
AMOUNT
%
$
1,093,995
5
$
425,000
2
$
664,900
3
34,165
-
54,031
-
13,131
-
4,806,202
21
4,299,733
21
4,470,501
21
2,181,429
10
1,025,516
5
1,350,821
6
322,120
1
171,568
1
58,109
-
102,399
1
98,186
1
134,559
1
17,628
-
15,491
-
23,778
-
316,746
1
354,587
2
302,129
2
8,874,684
39
6,444,112
32
7,017,928
33
189,088
1
339,343
2
436,564
2
14,377
-
6,177
-
7,679
-
84,698
-
87,453
-
88,059
1
288,163
1
432,973
2
532,302
3
9,162,847
40
6,877,085
34
7,550,230
36
6,800,000
30
7,401,000
36
7,401,000
35
2,261,663
10
2,261,663
11
2,261,663
10
2,122,911
9
2,078,338
10
2,078,338
10
227,313
1
254,690
1
254,690
1
2,087,560
9
1,547,168
8
1,450,584
7
21,405
- (
227,312) (
1)(
16,230)
-
13,520,852
59
13,315,547
65
13,430,045
63
160,236
1
160,501
1
165,743
1
13,681,088
60
13,476,048
66
13,595,788
64
$
22,843,935
100
$
20,353,133
100
$
21,146,018
100		 September 30, 2023 September 30, 2023
AMOUNT
$
1,093,995
34,165
4,806,202
2,181,429
322,120
102,399
17,628
316,746
8,874,684
189,088
14,377
84,698
288,163
9,162,847
6,800,000
2,261,663
2,122,911
227,313
2,087,560
21,405
13,520,852
160,236
13,681,088
$
22,843,935		 %
Current liabilities
2100
Short-term borrowings
2130
Current contract liabilities
2170
Accounts payable
2200
Other payables
2230
Current income tax liabilities
2250
Provisions for liabilities -
current
2280
Current lease liabilities
2300
Other current liabilities
21XX
Total current liabilities
Non-current liabilities
2570
Deferred income tax liabilities
2580
Non-current lease liabilities
2600
Other non-current liabilities
25XX
Total non-current
liabilities
2XXX
Total liabilities
Equity attributable to owners of
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
31XX
Equity attributable to
owners of the parent
36XX
Non-controlling interest
3XXX
Total equity
Significant contingent
liabilities and unrecognised
contract commitments
3X2X
Total liabilities and equity		 6(12)
6(20)
7
6(13)
6(15)
6(14)

6(16)
6(17)
6(18)
6(19)
6(19)
9		 3
-
21
6
-
1
-
2
33
2
-
1
3
36
35
10
10
1
7
-
63
1
64
100

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

~7~

AMTRAN TECHNOLOGY CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023

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

Items Notes Three months ended September 30 Three months ended September 30
2024 2023
4000
Sales revenue
5000
Operating costs
5900
Net operating margin
Operating expenses
6100
Selling expenses
6200
General and administrative expenses
6300
Research and development expenses
6000
Total operating expenses
6900
Operating profit (loss)
Non-operating income and expenses
7100
Interest income
7010
Other income
7020
Other gains and losses
7050
Finance costs
7060
Share of profit/(loss) of associates and joint ventures
accounted for under equity method
7000
Total non-operating income and expenses
7900
Profit before income tax
7950
Income tax expense
8200
Profit for the period

(Continued)

~8~

AMTRAN TECHNOLOGY CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023

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

Items Notes Three months ended September 30 Three months ended September 30 Three months ended September 30 %

-

-
2
-
-
2
2
3
1
-
1
3
-
3
0.06
0.06		 Nine months ended September 30 Nine months ended September 30 Nine months ended September 30
2024 %
- (
- (
1

-
-
1
1
3
2
-
2
3
-
3
0.20
0.20		 2023 2024
%
-
-
1
-
- (
1
1
7
6
-
6
7
-
7
1.32
1.31		 2023
AMOUNT

$
17,392)

17,392)
120,183
-
3,790
123,973
$
106,581
$
155,875
$
46,507
2,787
$
49,294
$
149,071
6,804
$
155,875
$		 AMOUNT

$
47,215
47,215
187,879
8,646
8,059
204,584
$
251,799
$
1,225,707
$
959,623
14,285
$
973,908
$
1,208,340
17,367
$
1,225,707
$		 AMOUNT

$
10,053
10,053
235,065
-

1,108 )
233,957
$
244,010
$
603,474
$
349,145
10,319
$
359,464
$
587,605
15,869
$
603,474
$		 %
Other comprehensive income
Components of other comprehensive income that will be
reclassified to profit or loss
8320
Share of other comprehensive income (loss) of associates and
joint ventures accounted for using equity method, components
of other comprehensive income that will not be reclassified to
profit or loss
8310
Other comprehensive income (loss) that will not be
reclassified to profit or loss
Components of other comprehensive income that will be
reclassified to profit or loss
8361
Financial statements translation differences of foreign
operations
8367
Unrealised gains (losses) from investments in debt instruments
measured at fair value through other comprehensive income
8370
Share of other comprehensive income (loss) of associates and
joint ventures accounted for under equity method
8360
Other comprehensive income that will be reclassified to
profit or loss
8300
Total other comprehensive income for the period
8500
Total comprehensive income for the period
Profit attributable to:
8610
Owners of the parent
8620
Non-controlling interest
Comprehensive income attributable to:
8710
Owners of the parent
8720
Non-controlling interest
Earnings per share (in dollars)
9750
Basic earnings per share
9850
Diluted earnings per share		 -
-
2
-
-
2
2
5
3
-
3
5
-
5
0.45
$ $ $ $ 0.45

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

~9~

AMTRAN TECHNOLOGY CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023

(Expressed in thousands of New Taiwan dollars)

Equity attributable to owners of the parent

Nine months ended September 30, 2023
Balance at January 1, 2023
Profit
Other comprehensive income for the period
Total comprehensive income
Reversal of special reserve
Capital reduction
Adjustment in non-controlling interest
Disposal of subsidiaries
Repurchase and retirement of treasury shares
Balance at September 30, 2023
Nine months ended September 30, 2024
Balance at January 1, 2024
Profit
Other comprehensive income for the period
Total comprehensive income
Appropriations of 2023 net income
Cash dividends
Legal reserve
Reversal of special reserve
Changes in investments accounted for using equity method
Capital reduction
Adjustment in non-controlling interest
Balance at September 30, 2024		 Notes Share capital -
common stock		 Total capital
surplus, additional
paid-in capital		 Retained Earnings Other EquityInterest Other EquityInterest Total Non-controlling
interest		 Total equity
Legal reserve Special reserve Unappropriated
retained earnings		 Financial
statements
translation
differences of
foreign operations		 Unrealised gains
(losses) from
financial assets
measured at fair
value through
other
comprehensive
income
6(19)
6(18)
6(19)
6(18)
6(16)		 $ 7,980,000
-
-
-
-
(
399,000 )
-
-
(
180,000 )
$ 7,401,000
$ 7,401,000
-
-
-
-
-
-
-
(
601,000 )
-
$ 6,800,000		 $ 2,293,509
-
-
-
-

-
-
-
(
31,846 )
$ 2,261,663
$ 2,261,663
-
-
-
-
-
-
-

-
-
$ 2,261,663		 $ 2,078,338
-
-
-
-
-
-
-
-
$ 2,078,338
$ 2,078,338
-
-
-
-
44,573
-
-
-
-
$ 2,122,911		 $
342,484
-
-
-
(
87,794 )
-
-
-
-
$
254,690
$
254,690
-
-
-
-
-
(
27,377 )
-
-
-
$
227,313		 $ 1,013,645
349,145
-
349,145

87,794
-
-
-
-
$ 1,450,584
$ 1,547,168
959,623
-
959,623
(
401,200 )
(
44,573 )

27,377
(
835 )
-
-
$ 2,087,560		 ($
200,300 )
-
228,407
228,407
-
-
-
-
-
$
28,107
($
183,413 )
-
192,856
192,856
-
-
-
-
-
-
$
9,443		 ($
54,390 )
-
10,053
10,053
-
-
-
-
-
($
44,337 )
($
43,899 )
-
55,861
55,861
-
-
-
-
-
-
$
11,962		 $ 13,453,286
349,145
238,460
587,605
-
(
399,000 )
-
-
(
211,846 )
$ 13,430,045
$ 13,315,547
959,623
248,717
1,208,340
(
401,200 )
-
-
(
835 )
(
601,000 )
-
$ 13,520,852		 $
165,876
10,319
5,550
15,869
-
-
(
13,051 )
(
2,951 )
-
$
165,743
$
160,501
14,285
3,082
17,367
-
-
-
-
-
(
17,632 )
$
160,236		 $ 13,619,162
359,464
244,010
603,474
-
(
399,000 )
(
13,051 )
(
2,951 )
(
211,846 )
$ 13,595,788
$ 13,476,048
973,908
251,799
1,225,707
(
401,200 )
-
-
(
835 )
(
601,000 )
(
17,632 )
$ 13,681,088

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

~10~

AMTRAN TECHNOLOGY CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax
Adjustments
Adjustments to reconcile profit (loss)
Depreciation (including investment property)

Depreciation on right-of-use assets

Amortisation

Net gain (loss) on financial assets at fair value
through profit or loss

Share of profit of associates and joint ventures

Loss (gain) on disposal of property, plant and
equipment

Gain on liquidation of equity method
investments

Losses on impairment

Interest expense

Interest income

Dividend income

Changes in operating assets and liabilities
Changes in operating assets
Financial assets mandatorily measured at fair
value
Accounts receivable
Accounts receivable-related parties
Other receivables
Inventories
Prepayments
Changes in operating liabilities
Contract liabilities
Accounts payable
Accounts payable-related parties
Other payables
Receipts in advance
Other current liabilities
Provisions for liabilities
Accrued pension liabilities
Cash outflow generated from operations
Interest received
Dividends received
Income tax received
Interest paid
Income tax paid
Net cash flows used in operating activities		 Nine months ended September 30
Notes
2024
2023
$
1,189,508 $
448,004
6(25)
303,432
244,671
6(25)
22,351
36,571
6(25)
15,937
16,524
6(2)(23)
(
712,213 )
17,735
6(7)
(
2,066 ) (
28,733 )
6(23)
2,836 (
2,467 )
6(23)
(
437 )
-
6(7)
-
41,140
6(24)
10,950
9,978
6(21)
(
171,934 ) (
145,045 )
6(22)
(
24,156 ) (
28,813 )
1,829,216
634,832
(
2,224,179 ) (
1,600,264 )
36,563
34,681
(
6,266 ) (
18,248 )
(
866,623 ) (
634,811 )
(
158,205 ) (
32,229 )
(
19,866 ) (
32,965 )
506,562
728,565
(
93 )
66
194,397
71,609
(
64,265 )
83,387
26,424
98,680
4,213 (
12,440 )
(
203 ) (
170 )
(
108,117 ) (
69,742 )
157,249
118,184
24,156
28,813
38,059
-
(
9,102 ) (
9,742 )
(
275,292 ) (
215,491 )
(
173,047 ) (
147,978 )

(Continued)

~11~

AMTRAN TECHNOLOGY CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of financial assets at amortised cost
Principal repayment of financial assets at maturity
Liquidation of investment accounted for using
equity method
Proceeds from capital reduction of investments
accounted for using equity method

Acquisition of investments accounted for using
equity method

Acquisition of property, plant and equipment
(including investment property)

Proceeds from disposal of property, plant and
equipment
Acquisition of intangible assets

(Increase) decrease in non-current assets
Decrease in restricted assets
Increase in refundable deposits
Net cash flows from (used in) investing
activities
CASH FLOWS FROM FINANCING ACTIVITIES
Increase in short-term borrowings

Payment of long-term borrowings

Increase in refundable deposits

Payments of lease liabilities

Decrease in non-controlling interests

Net cash flows from (used in) financing
activities
Cumulative translation adjustments
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period

Cash and cash equivalents at end of period
 Nine months ended September 30
Notes
2024
2023
($
1,504,830 ) ($
2,340,595 )
2,403,024
646,896
2,301
-
6(7)
5,832
-
6(7)
- (
100,858 )
6(28)
(
700,948 ) (
326,826 )
1,487
7,242
6(11)
(
9,181 ) (
6,250 )
(
5,096 )
1,162
6,981
36,085
(
3,743 ) (
4,131 )
195,827 (
2,087,275 )
6(29)
668,995
234,900
6(29)
(
2,984 ) (
5,326 )
6(16)
- (
211,846 )
6(29)
(
14,265 ) (
31,646 )
6(19)
(
17,632 ) (
16,002 )
634,114 (
29,920 )
59,578
91,457
716,472 (
2,173,716 )
6(1)
3,789,402
6,278,248
6(1)
$
4,505,874 $
4,104,532

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

~12~

AMTRAN TECHNOLOGY CO., LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023

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

1. HISTORY AND ORGANISATION

Amtran Technology Co., Ltd. (the “Company”) was incorporated in August 1994 and started its operations in January 1995. The Company and its subsidiaries (collectively referred herein as the “Group”) are primarily engaged in the design, manufacture and sales of monitors, digital TV, computers and computer peripherals. As of September 30, 2024, the Group had 4,255 employees.

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

These consolidated financial statements were authorised for issuance by the Board of Directors on November 7, 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 the FSC and became effective from 2024 are as follows:

2024 are as follows:
New Standards,Interpretations and Amendments
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’		 Effective date by
International Accounting
Standards Board
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.

(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 effective from 2025 are as follows:

follows:
New Standards,Interpretations and Amendments Effective date by
International Accounting
Standards Board
Amendments to IAS 21, ‘Lack of exchangeability’ 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.

~13~

(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:

==> picture [488 x 48] intentionally omitted <==

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

Effective date by
International Accounting
New Standards, Interpretations and Amendments Standards Board
----- End of picture text -----

Accounting Standards as endorsed by the FSC are as follows:
New Standards,Interpretations and Amendments		 Effective date by
International Accounting
Standards Board
Amendments to IFRS 9 and IFRS 7, ‘Amendments to the classification January 1, 2026
and measurement of financial instruments’
Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets To be determined by
between an investor and its associate or joint venture’ International Accounting
Standards Board
IFRS 17, ‘Insurance contracts’ January 1, 2023
Amendments to IFRS 17, ‘Insurance contracts’ January 1, 2023
Amendment to IFRS 17, ‘Initial application of IFRS 17 and IFRS 9 – January 1, 2023
comparative information’
IFRS 18, ‘Presentation and disclosure in financial statements’ January 1, 2027
IFRS 19, ‘Subsidiaries without public accountability: disclosures’ January 1, 2027
Annual Improvements to IFRS Accounting Standards—Volume 11 January 1, 2026

Except for the following, the above standards and interpretations have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment:

  • A. IFRS 18, ‘Presentation and disclosure in financial statements’

  • IFRS 18, ‘Presentation and disclosure in financial statements’ replaces IAS 1. The standard introduces a defined structure of the statement of profit or loss, disclosure requirements related to management-defined performance measures, and enhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes.

  • B. Amendments to IFRS 9 and IFRS 7, ‘Amendments to the classification and measurement of financial instruments’

The IASB issued the amendments to update the disclosures for equity instruments designated at fair value through other comprehensive income (FVOCI). The entity shall disclose the fair value of each class of investment and is no longer required to disclose the fair value of each investment. In addition, the amendments require the entity to disclose the fair value gain or loss presented in other comprehensive income during the period, showing separately the fair value gain or loss related to investments derecognised during the reporting period and the fair value gain or loss related to investments held at the end of the reporting period; and any transfers of the cumulative gain or loss within equity during the reporting period related to the investments derecognised during that reporting period.

~14~

4. SUMMARY OF MATERIAL ACCOUNTING POLICIES

The principal accounting policies adopted are consistent with Note 4 in the consolidated financial statements for the year ended December 31, 2023, except for compliance statement, basis of preparation, basis of consolidation and additional policies as set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

(1) Compliance statement

  • A. The consolidated financial statements of the Group have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Accounting Standard 34, ‘Interim financial reporting’ that came into effect as endorsed by the FSC.

  • B. The consolidated financial statements should be read together with the consolidated financial statements for the year ended December 31, 2023.

(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 and financial liabilities (including derivative instruments) at fair value through profit or loss.

  • (b) Financial assets measured 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 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”) requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgment 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:

  • The basis for preparation of these consolidated financial statements is consistent with those for the preparation of the consolidated financial statements for the year ended December 31, 2023.

  • B. Subsidiaries included in the consolidated financial statements:

~15~

Name
Name of
Main Business
of Investor
Subsidiary
Activities
Amtran
Technology Co.,
Ltd.
Asev Display Labs
Sales of computer
software, hardware, and
provision of maintenance
services
〞
REI MAU ENTERPRISE
CO., LTD.
General investments
〞
RICK TECHNOLOGY
INC.
General trading
〞
Amtran Logistics, Inc.
Sales of LCD TV and
aftersale service
〞
Spyglass Tesla, LLC.
General investments
〞
Abound Profits Limited
General investments
〞
H&P Venture Capital
Investment Co., Ltd.
Venture capital
Amtran
Technology Co.,
Ltd.
Amtran Vietnam Trading
Company Limited (VNTC)
General trading
〞
Amtran Video Corporation
Sales of LCD TV and
aftersale service
〞
Suzhou Raken Technology
Ltd. (Raken)
Design, manufacture of
LCD monitors, provision
of maintenance services
〞
Amtran Vietnam
Technology Company
Limited (AVTC)
Manufacturing and sales
of LCDs
ABOUND
PROFITS
LIMITED
Amtran Electronic Co., Ltd. Design, manufacture of
LCD monitors, provision
of maintenance services
REI MAU
REI MAU Capital Inc.
Venture capital
RICK
TECHNOLOGY
INC.
Rick Service Inc.
Logistics services
Amtran Electronic
Co., Ltd.
Suzhou Raken Technology
Ltd. (Raken)
Design, manufacture of
LCD monitors, provision
of maintenance services		 September 30, December 31, September 30,
2024
2023
2023
Description
100.00
100.00
100.00
100.00
100.00
100.00
82.00
82.00
82.00
100.00
100.00
100.00
43.75
43.75
43.75
Note 1
100.00
100.00
100.00
-
-
-
Note 1
Note 2
100.00
100.00
100.00
100.00
100.00
100.00
37.95
37.95
37.95
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
62.05
62.05
62.05
Ownership (%)

Note 1: The Company has control over SPYGLASS and H&P Venture Capital Investment Co., Ltd.

  • and were included in the consolidated financial statements.

Note 2: It was dissolved and liquidated on September 11, 2023.

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

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

  • E. Significant restrictions: None.

  • F. Subsidiaries that have non-controlling interests that are material to the Group:

  • As of September 30, 2024, December 31, 2023 and September 30, 2023, the non-controlling interest amounted to $160,236, $160,501 and $165,743, respectively. The information on noncontrolling interest and respective subsidiaries is as follows:

~16~

Name of
subsidiary		 Principal place
of business		 Ownership (%) Ownership (%) Ownership (%) Ownership (%)
September 30,2024 December 31,2023
Amount Ownership
(%)		 Amount Ownership
(%)
SPYGLASS
H&P VENTURE
CAPITAL
INVESTMENT
CORPORATION
Name of
subsidiary		 USA
TAIWAN
Principal place
of business
USA
TAIWAN		 109,014
$ -		 56.25
-
Amount
Ownership
(%)
116,401
$ 56.25
-
-
SPYGLASS
H&P VENTURE
CAPITAL
INVESTMENT
CORPORATION

Summarised financial information of the subsidiaries:

Balance sheets

Balance sheets
SPYGLASS
September 30, 2024 December 31, 2023 September 30,2023
Current assets $ 34,508
 $ 43,150
 $ 40,817
Non-current assets 161,058 156,275 168,103
Current liabilities 182 - -
Non-current liabilities ( 1,946)
 ( 1,890)
 ( 1,985)
Total net assets $ 193,802
 $ 197,535
 $ 206,935
H&P VENTURE CAPITAL
INVESTMENTCO.,LTD.
September 30,2024 December31,2023 September 30,2023
Current assets $ -
 $ -
 $ -
Current liabilities - - -
Total net assets $ - $ - $ -

~17~

Statements of comprehensive income

Revenue
Profit before income tax
Tax expense
Profit for the period (Total comprehensive
income for the period)
Comprehensive income attributable to
non-controlling interest
Dividends paid to non-controlling
interest
Revenue
Profit before income tax
Tax expense
Profit for the period (Total comprehensive
income for the period)
Comprehensive income attributable to
non-controlling interest
Dividends paid to non-controlling
interest		 2024
2023
-
$
-
$ 7,282

7,148
-

-
7,282
$
7,148
$ 4,096
$ 4,021
$
-
$ -
$ SPYGLASS
Threemonths ended September30,
SPYGLASS
Nine months ended September 30,		 2024
2023
-
$
-
$ 7,282

7,148
-

-
7,282
$
7,148
$ 4,096
$ 4,021
$
-
$ -
$ SPYGLASS
Threemonths ended September30,
SPYGLASS
Nine months ended September 30,
2024
-
$ 22,133
-
22,133
$ 12,450
$ 17,632
$		 2023
-
$
19,576
-
19,576
$
11,012
$
-
$

~18~

Revenue

Loss before income tax

Tax expense Loss for the period Other comprehensive income, net of tax Total comprehensive loss for the period Comprehensive loss attributable to non-controlling interest Dividends paid to non-controlling interest

Revenue

Loss before income tax

Tax expense Loss for the period Other comprehensive income, net of tax Total comprehensive loss for the period Comprehensive loss attributable to non-controlling interest Dividends paid to non-controlling interest

==> picture [221 x 428] intentionally omitted <==

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

H&P VENTURE CAPITAL
INVESTMENT CO., LTD.
Three months ended September 30,
2024 2023
- -
$ $
-
( 3,588)
- -
-
( 3,588)
- -
-
$ ($ 3,588)
$ - ($ 2,199)
- -
$ $
H&P VENTURE CAPITAL
INVESTMENT CO., LTD.
Nine months ended September 30,
2024 2023
- -
$ $
-
( 8,059)
- -
-
( 8,059)
- -
-
$ ($ 8,059)
$ - ($ 4,939)
- -
$ $
----- End of picture text -----

~19~

Statements of cash flows

Statements of cash flows
SPYGLASS
Ninemonths ended September30,
2024 2023
Net cash provided by operating activities $ 22,402
 $ 16,555
Net cash used in investing activities - -
Net cash used in financing activities ( 31,345)
 -
Effect of exchange rates on cash and cash
equivalents 379 1,701
(Decrease) increase in cash and cash
equivalents ( 8,564)
 18,256
Cash and cash equivalents, beginning of period 42,951 16,594
Cash and cash equivalents, end of period $ 34,387 $ 34,850
H&P VENTURE CAPITAL
INVESTMENT CO., LTD.
Ninemonths ended September30,
2024 2023
Net cash provided by operating activities $ -
 $ 22,908
Net cash used in investing activities - -
Net cash used in financing activities - ( 21,294)
Increase in cash and cash equivalents - 1,614
Cash and cash equivalents, beginning of period - 5,817
Cash and cash equivalents, end of period $ - $ 7,431

(4) 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.

~20~ 

  - (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. Every year, the actuary calculated defined benefit obligation by using projected unit credit method, and the discount rate was based on the market yield rate of government bond on the balance sheet date.

     - 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.

     - iv. Pension cost for the interim period is calculated on a year-to-date basis by using the pension cost rate derived from the actuarial valuation at the end of the prior financial year, adjusted for significant market fluctuations since that time and for significant curtailments, settlements, or other significant one-off events. Also, the related information is disclosed accordingly.

  • C. Termination benefits

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

  • D. Employees’ compensation and directors’ and supervisors’ remuneration

    • Employees’ compensation and directors’ and supervisors’ 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.

  • (5) Income tax

  • A. The interim period income tax expense is recognised based on the estimated average annual effective income tax rate expected for the full financial year applied to the pretax income of the interim period, and the related information is disclosed accordingly.

  • B. If a change in tax rate is enacted or substantively enacted in an interim period, the Group recognises the effect of the change immediately in the interim period in which the change occurs. The effect of the change on items recognised outside profit or loss is recognised in other comprehensive income or equity while the effect of the change on items recognised in profit or loss is recognised in profit or loss.

~21~

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:

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

There have been no significant changes during the period. For the detailed information, refer to Note 5 of the consolidated financial statements for the year ended December 31, 2023.

  • (2) Critical accounting estimates and assumptions

  • A. Revenue recognition

    • The Group estimates sales discounts and returns provisions based on historical results and other known factors. Provisions for such liabilities are recognised as a deduction item to sales revenues when the sales are recognised. The Group reassesses the reasonableness of estimates of discounts and returns periodically.

As of September 30, 2024, the provision for sales discounts and returns recognised by the Group was $246,332.

  • B. 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. Such an evaluation of inventories is principally based on the demand for the products within the specified period in the future. Therefore, there might be material changes to the evaluation.

As of September 30, 2024, information on the carrying amount of inventories as of September 30, 2024 is provided in Note 6(5).

  • C. Financial assets—fair value measurement of unlisted stocks without active market The fair value of unlisted stocks (including beneficiary certificate) held by the Group that are not traded in an active market is determined considering those companies’ recent fund raising activities and technical development status, fair value assessment of other companies of the same type, market conditions and other economic indicators existing at balance sheet date. Any changes in these judgements and estimates will impact the fair value measurement of these unlisted stocks. Refer to Note 12(2) for the financial instruments fair value information.

  • As of September 30, 2024, the carrying amount of unlisted stocks without active market was $442,221.

~22~

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

September30,2024 September30,2024 December 31, 2023 December 31, 2023 September 30, 2023 September 30, 2023
Cash on hand $ 1,579
 $ 2,180
 $ 1,788
Checking account and demand
deposits 3,275,172 3,091,680
 2,281,509
Time deposits 1,229,123 695,542 1,821,235
$ 4,505,874 $ 3,789,402
 $ 4,104,532

  • A. The Group associates 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 interest rate range as of September 30, 2024, December 31, 2023 and September 30, 2023 were 1.15%~5.44%, 1.16%~5.61% and 1.16%~5.99%, respectively.

  • C. As of September 30, 2024, December 31, 2023 and September 30, 2023, the checking account deposit for provisional attachment of civil action amounted to $0, $6,981 and $7,123 (listed as “non-current assets”), and the bank's acceptance bill amounted to $1,904, $1,811 and $0 (listed as “current assets”), respectively.

  • D. The time deposits whose maturities exceed 3 months amounted to $2,565,782, $3,403,150 and $2,514,223 as of September 30, 2024, December 31, 2023 and September 30, 2023, respectively and were listed as “Current financial assets at amortised cost”. The interest rate range as of September 30, 2024, December 31, 2023 and September 30, 2023 were 1.29%~6.00%, 1.16%~6.00% and 1.16%~6.90%, respectively. Interest income recognised in relation to Current financial assets at amortised cost” amounted $97,918, $138,272, and $97,151, respectively.

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

Items
September30,2024
Current items:
Financial assets mandatorily
measured at fair value through
profit or loss
Equity securities
735,116
$ Debt securities
20,000
Beneficiary certificates
171,733
Derivative instruments
91,955

Hybrid instruments
164,649
1,183,453
$		 December31,2023

1,880,836
$ 20,000
161,238
59,810
177,487
2,299,371
$		 September30,2023
1,862,137
$ 20,000
220,397
536,910
175,510
2,814,954
$

~23~

  • A. Amounts recognised in profit or loss in relation to financial assets at fair value through profit or loss are listed below:
Financial assets mandatorily measured
at fair value through profit or loss
Equity securities
Debt securities
Beneficiary certificates
Derivative instruments
Hybrid instruments
Financial assets mandatorily measured
at fair value through profit or loss
Equity securities
Debt securities
Beneficiary certificates
Derivative instruments
Hybrid instruments		 2024
2023
34,384
$ 297,602)
($ -
-
2,653
7,718
56,965
89,600
1,421
8,651
95,423
$ 191,633)
($ 2024
2023
507,854
$ 287,151)
($ -
600
10,496
28,800)
(
173,658
265,265
20,205
32,351
712,213
$ 17,735)
($ Three months endedSeptember30,
Ninemonths ended September30,

  • B. Financial assets designated as at fair value through profit or loss upon initial recognition are hybrid instruments.

  • C. For the nine months ended September 30, 2024, the Group disposed shares of VIZIO HOLDING CORP. for a consideration of $1,669,712, resulting to a gain on valuation of financial assets at fair value through profit or loss amounting to $485,910.

  • As of September 30, 2024, all the shares of VIZIO HOLDING CORP. held by the Group had been disposed.

  • D. For the nine months ended September 30, 2023, the Group disposed shares of VIZIO HOLDING CORP. for a consideration of $668,863, resulting to a gain on valuation of financial assets at fair value through profit or loss amounting to $16,168.

  • In addition, the fair value of shares of VIZIO HOLDING CORP. held by the Group, after taking into consideration the quoted market prices, amounted to $1,183,647 as of September 30, 2023. Unrealised loss on valuation of financial assets at fair value through profit or loss amounted to $359,204 for the nine months ended September 30, 2023.

~24~

  • E. For the year ended December 31, 2023, the Group disposed shares of VIZIO HOLDING CORP. for a consideration of $1,023,037, resulting to a loss on valuation of financial assets at fair value through profit or loss amounting to $65,628.

  • In addition, the fair value of shares of VIZIO HOLDING CORP. held by the Group, after taking into consideration the quoted market prices, amounted to $1,183,802 as of December 31, 2023. Unrealised gain on valuation of financial assets at fair value through profit or loss amounted to $44,585 for the year ended December 31, 2023.

  • F. The Group entered into contracts relating to derivative financial assets which were not accounted for under hedge accounting. The information is listed below:

September 30, 2024 December 31, 2023 Derivative financial Contract Amount Contract Contract Amount Contract instruments (Notional Principal) Period (Notional Principal) Period Current items: Exchange rate USD (Sell) 250 million 2024.09.04~2024.10.28 USD (Sell) 275 million 2023.11.30~2024.01.31 swap contracts Exchange rate USD (Buy) 95 million 2024.04.22~2025.02.03 USD (Buy) 10 million 2023.10.02~2024.04.16 swap contracts Forward foreign USD (Sell) 95 million 2024.08.09~2025.01.23 USD (Sell) 90 million 2023.10.06~2024.03.22 exchange Forward foreign USD (Buy) 280 million 2024.05.06~2025.03.31 USD (Buy) 360 million 2023.07.03~2024.06.28 exchange

swap contracts
Forward foreign USD (Sell) 95 million 2024.08.09~2025.01.23
USD (Sell) 90 million
exchange
Forward foreign USD (Buy) 280 million 2024.05.06~2025.03.31 USD (Buy) 360 million
exchange		 USD (Sell) 90 million
USD (Buy) 360 million		 2023.10.06~2024.03.22
2023.07.03~2024.06.28
Derivative
financial
Contract Amount
instruments
(Notional Principal)
Current items:
Exchange rate
USD (Sell) 245 million
swap contracts
Exchange rate
USD (Buy) 420 million
swap contracts
Forward foreign
USD (Sell) 55 million
September		 September 30,2023
Contract
Period
2023.08.29~2023.10.31
2023.03.31~2024.03.27
2023.06.14~2023.12.19

(a) Exchange rate swap contracts

The Group entered into exchange rate swap contracts with financial institutions to swap floating interest rate for fixed interest rate, to earn the exchange rate spread, and to hedge cash flow risk of the floating-rate liability positions. However, these exchange rate swap contracts are not accounted for under hedge accounting.

~25~

  • (b) Forward foreign exchange contracts

    • The Group entered into forward foreign exchange contracts to sell NTD and buy USD to earn the exchange rate spread, and to hedge exchange rate risk of import and export proceeds. However, these forward foreign exchange contracts are not accounted for under hedge accounting.

  • G. As of September 30, 2024, December 31, 2023, and September 30, 2023, the Group has no financial assets at fair value through profit or loss pledged to others.

  • H. Information relating to credit risk of financial assets at fair value through profit or loss is provided in Note 12(2).

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

Items September 30,2024 December 31,2023 September 30,2023
Current items:
Equity securities
Unlisted stocks $ 13,569
 $ 12,981
 $ 13,244
Valuation adjustment ( 11,654)
 ( 11,149)
 ( 11,375)
1,915 1,832 1,869
Debt securities
Ordinary corporate bonds 186,546 186,546 -
Valuation adjustment 4,703 ( 3,943)
 -
191,249 182,603 -
Total $ 193,164 $ 184,435 $ 1,869

  • A. The Group has elected to classify debt investments 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 $193,164, $184,435 and $1,869 at September 30, 2024, December 31, 2023, and September 30, 2023, respectively.

  • B. As of September 30, 2024, December 31, 2023 and September 30, 2023, the Group has no financial assets at fair value through other comprehensive income pledged to others as collateral.

  • C. For the three months and nine months ended September 30, 2024 and 2023, fair value change recognised in other comprehensive income in relation to the financial assets at fair value through other comprehensive income amounted to ($2,609), $0, $8,646 and $0, respectively.

  • D. Information relating to credit risk of financial assets at fair value through other comprehensive income is provided in Note 12(2).

(4) Accounts receivable

Accounts receivable Less: Loss allowance

September30,2024 September30,2024 December31,2023 December31,2023 September30,2023 September30,2023
$ 5,668,182
 $ 3,444,003
 $ 4,256,752
( 10,004)
 ( 9,963)
 ( 9,982)
$ 5,658,178 $ 3,434,040 $ 4,246,770

~26~

  • A. The Group did not hold any collateral for accounts receivable.

  • B. As of September 30, 2024, December 31, 2023 and September 30, 2023, accounts receivable were all from contracts with customers. As of January 1, 2023, the balance of receivables from contracts with customers amounted to $2,656,488.

  • C. Information on accounts receivable relating to credit risk is provided in Note 12(2).

(5) Inventories

Inventories
Raw materials
Work in process
Finished goods
Raw materials
Work in process
Finished goods
Raw materials
Work in process
Finished goods		 September30,2024
Allowance for
Cost
valuation loss
2,072,025
$ 151,865)
($ 201,627
5,735)
(
1,104,609
27,932)
(
3,378,261
$ 185,532)
($ December 31, 2023		 Bookvalue
1,920,160
$ 195,892
1,076,677
3,192,729
$
Allowance for
Cost
valuation loss
1,590,083
$ 101,157)
($ 144,081
5,433)
(
720,300

21,768)
(
2,454,464
$ 128,358)
($ Allowance for
Cost
valuation loss
1,898,320
$ 82,811)
($ 132,855
5,746)
(
769,109
32,046)
(
2,800,284
$ 120,603)
($ September30,2023		 Bookvalue
1,488,926
$ 138,648
698,532
2,326,106
$
Book value
1,815,509
$ 127,109
737,063
2,679,681
$

~27~

Expenses and losses incurred on inventories for the period:

Threemonths ended Threemonths ended Threemonths ended September30,
2024 2023
Cost of inventories sold $ 6,749,980
 $ 4,421,369
Loss on inventory price decline
(gain from price recovery) 4,722 ( 15,435)
Loss on scrapping inventory 12,016 6,660
Other operating costs (Note 1) 49,113 39,705
$ 6,815,831
 $ 4,452,299
Ninemonths ended September30,
2024 2023
Cost of inventories sold $ 15,852,360
 $ 10,945,858
Loss on inventory price decline
(gain from price recovery) 57,174
 ( 112,083)
Loss on scrapping inventory 27,978
 14,227
Other operating costs (Note 1) 153,261 107,807
$ 16,090,773 $ 10,955,809

Note 1: Mainly represents adjustment of the difference between maintenance costs, royalty expenses and overhead.

Note 2:The Group reversed a previous inventory write-down because the related inventory items were scrapped or sold during the three months and nine months ended September 30, 2023.

(6) Prepayments

Prepayments to suppliers
Net input VAT
Prepaid income tax
Prepaid electricity fee
Other prepaid expenses		 September30,2024
210,376
$ 58,456
4,519
1,650
31,793
306,794
$		 December31,2023
86,044
$ 38,568
4,365
3,886
17,186
150,049
$		 September30,2023
96,485
$ 37,075
5,465
2,021
28,053
169,099
$

(7) Investments accounted for using equity method

Associates:
Hua Jung Co., Ltd. (Hua Jung)
BMA Ventures Capital Investment
Corporation
Heroic Faith Medical Science Co.,
Ltd. (Heroic Faith)
CDIB-Mac Limited Partnership		 September30,2024
481,604
$ 40,278
13,122
110,891
645,895
$		 December31,2023
438,880
$ 52,172
13,122
110,148
614,322
$		 September30,2023
437,142
$ 61,383
13,122
116,393
628,040
$

~28~

A. Associates

  • (a) The basic information of the associate that is material to the Group is as follows:
Company
name
Hua Jung
Company
name
Hua Jung		 Principal
place of
business
Taiwan
Principal
place of
business
Taiwan		 September 30
December 31,
Nature of
Method of
2024
2023
relationship
measurement
31.60%
31.60%
Investee accounted
for using equity method
Equity method
September 30
Nature of
Method of
2024
relationship
measurement
31.60%
Investee accounted
for using equity method
Equity method
Shareholdingratio
Shareholding ratio
  • (b) The summarised financial information of the associate that is material to the Group is as follows:

Balance sheet

follows:
Balance sheet
Hua Jung
September30,2024 December31,2023 September 30, 2023
Current assets $ 1,556,916
 $ 1,558,316
 $ 1,873,833
Non-current assets 963,861 710,526 693,135
Current liabilities ( 500,838)
 ( 358,505)
 ( 670,303)
Non-current liabilities ( 64,523)
 ( 74,787)
 ( 82,868)
Total net assets $ 1,955,416 $ 1,835,550 $ 1,813,797
Share in associate’s net asset $ 616,389
 $ 573,665
 $ 571,927
Accumulated impairment ( 134,785)
 ( 134,785)
 ( 134,785)
Carrying amount of the
associate $ 481,604 $ 438,880 $ 437,142

~29~

Statement of comprehensive income

Revenue
Profit for the period from continuing operations
Other comprehensive income (loss), net of tax
Total comprehensive income (loss)
Revenue
Profit for the period from continuing operations
Other comprehensive income, net of tax
Total comprehensive income		 2024
2023
246,262
$ 269,521
$ 8,649
$ 31,013
$ 18,048
43,040)
(
26,697
$ 12,027)
($ 2024
2023
622,438
$ 803,059
$ 23,840
$ 78,519
$ 158,350
28,309
182,190
$ 106,828
$ Hua Jung
Threemonths ended September30,
Hua Jung
Ninemonths ended September30,

  • (c) The Group’s material associate, Hua Jung Corporation, has quoted market prices. As of September 30, 2024, December 31, 2023 and September 30, 2023, the fair values were $848,652, $865,025 and $ 769,517, respectively.

  • (d) The information of the abovementioned associate disclosed by the Group is based on the audit reports of other auditors.

  • (e) The carrying amount of the Group’s interests in all individually immaterial associates and the Group’s share of the operating results are summarised below: As of September 30, 2024, December 31, 2023 and September 30, 2023, the carrying amount of the Group’s individually immaterial associates amounted to $164,291, $175,442 and $190,898, respectively.

$190,898, respectively.
Threemonths ended September 30,
2024 2023
Loss for the period from continuing
operations
(Total comprehensive loss) ($ 6,476) ($ 2,852)
Ninemonths ended September30,
2024 2023
(Loss) profit for the period from continuing
operations
(Total comprehensive (loss) income) ($ 5,321) $ 4,334
  • B. For the three months and nine months ended September 30, 2024 and 2023, the share of profit of associates and joint ventures accounted for using the equity method was ($3,868), $6,768, $2,066 and $28,733, respectively.

~30~

  • C. In 2022, the Board of Directors of the Group resolved to invest in CDIB-Mac Limited Partnership amounting to $18,525, and an additional investment of $100,858 in 2023. The investment accounted for using equity method is primarily engaged in general investment business.

  • D. For the year ended December 31, 2023, impairment losses recognised on Heroic Faith amounted to $41,140 since the recoverable amount was lower than the investment cost. The prepaid investment amounting to $6,468 as of December 31, 2023 was listed as “non-current assets” since the capital increase process has not yet been completed.

  • E. The Company's investee accounted for using equity method, BMA Ventures Capital Investment Corporation, reduced its capital on December 25, 2024 and 2023, and the Company received $5,832 and $4,877 as return of capital, respectively.

  • F. The Group is the single largest shareholder of Hua Jung Co., Ltd. with a 31.60% equity interest. The Group has no ability to acquire over 50% of the seats in the Board of Directors of Hua Jung Co., Ltd. and does not assign personnel to sit on the company's key management, which indicates that the Group has no current ability to direct the relevant activities of Hua Jung Co., Ltd. In addition, as the Group and Hua Jung belong to different industries, there were no significant transactions between the two companies. Thus, the Group has no control, but only has significant influence, over the investee.

  • G. The Company's investee accounted for using equity method, Hua Jung, resolved to distribute cash dividends amounting to $19,101 during the first quarter of 2024.The aforementioned amount has not yet been received as of September 30, 2024, and is listed as other receivables.

  • H. The Group liquidated H&P Venture Capital Investment Co., Ltd. on September 11, 2023, and received the liquidation proceeds of $2,301 on May 31, 2024. The gain on disposal was $437.

~31~

(8) Property, plant and equipment

At January 1, 2024
Cost
Accumulated depreciation
2024
Opening net book amount
Additions
Net disposal
Depreciation charge
Net exchange differences
Closing net book amount
At September 30, 2024
Cost
Accumulated depreciation		 Buildings
Transportation
Office
Other
Land
and structures
Machinery
equipment
equipment
equipment
516,578
$ 3,067,636
$ 1,012,990
$ 111,384
$ 399,794
$ 1,160,174
$ -
1,776,826)
(
660,595)
(
99,970)
(
348,602)
(
1,053,389)
(
516,578
$ 1,290,810
$ 352,395
$ 11,414
$ 51,192
$ 106,785
$ 516,578
$ 1,290,810
$ 352,395
$ 11,414
$ 51,192
$ 106,785
$ -
25,870
89,978
6,275
18,319
94,843
-
48)
(
3,584)
(
-
-
691)
(
-
107,105)
(
70,901)
(
5,325)
(
15,081)
(
96,652)
(
5,574
38,209
5,631
183
788
805
522,152
$ 1,247,736
$ 373,519
$ 12,547
$ 55,218
$ 105,090
$ 522,152
$ 3,198,579
$ 1,082,499
$ 118,394
$ 416,922
$ 1,292,480
$ -
1,950,843)
(
708,980)
(
105,847)
(
361,704)
(
1,187,390)
(
522,152
$ 1,247,736
$ 373,519
$ 12,547
$ 55,218
$ 105,090
$		 Unfinished
construction
Total
28,557
$ 6,297,113
$ -
3,939,382)
(
28,557
$ 2,357,731
$ 28,557
$ 2,357,731
$ 35,971
271,256
-

4,323)
(
-

295,064)
(
-
51,190
64,528
$ 2,380,790
$ 64,528
$ 6,695,554
$ -
4,314,764)
(
64,528
$ 2,380,790
$

~32~

Buildings
Transportation
Office
Other
Land
and structures
Machinery
equipment
equipment
equipment
At January 1, 2023
Cost
627,963
$ 3,138,878
$ 871,002
$ 102,972
$ 387,824
$ 1,045,373
$ Accumulated depreciation
-
1,727,973)
(
582,501)
(
96,332)
(
341,767)
(
988,191)
(
627,963
$ 1,410,905
$ 288,501
$ 6,640
$ 46,057
$ 57,182
$ 2023
Opening net book amount
$ 627,963 $ 1,410,905 $ 288,501 $ 6,640 $ 46,057 $ 57,182
Additions
-
9,963
75,806
3,591
10,694
103,713
Net disposal
-
2,128)
(
2,174)
(
-

17)
(
456)
(
Reclassification
111,385)
(
31,236)
(
-
-
-
-
Depreciation charge
-
103,040)
(
62,009)
(
4,197)
(
14,509)
(
52,828)
(
Net exchange differences
9,250
68,713
25,099
337
2,440
5,028
Closing net book amount
525,828
$ 1,353,177
$ 325,223
$ 6,371
$ 44,665
$ 112,639
$ At September 30, 2023
Cost
525,828
$ 3,131,068
$ 980,871
$ 105,959
$ 402,827
$ 1,157,800
$ Accumulated depreciation
-
1,777,891)
(
655,648)
(
99,588)
(
358,162)
(
1,045,161)
(
525,828
$ 1,353,177
$ 325,223
$ 6,371
$ 44,665
$ 112,639
$		 Unfinished
construction
Total
10,572
$ 6,184,584
$ -
3,736,764)
(
10,572
$ 2,447,820
$ $ 10,572
2,447,820
$ -
203,767
-
4,775)
(
-

142,621)
(
-
236,583)
(
-

110,867
10,572
$ 2,378,475
$ 10,572
$ 6,314,925
$ -
3,936,450)
(
10,572
$
2,378,475
$

Note 1: The Group’s buildings include building, parking space, air conditioner and decorations which are depreciated over 50 years, 35 years, and 15 years, respectively.

Note 2: Information about the property, plant and equipment that were pledged to others as collateral is provided in Note 8. Note 3: Please refer to Section 6(10) for an explanation of the reclassification of the property, plant and equipment.

~33~

(9) Leasing arrangements-lessee

  • A. The Group leases various assets including land use right, buildings and business vehicles. Rental contracts are typically made for periods of 1 to 50 years. Lease terms 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 parking spaces and warehouses.

  • C. The carrying amount of right-of-use assets and the depreciation charge are as follows:

The carrying amount of right-of-use assets and the depreciation charge are as follows: The carrying amount of right-of-use assets and the depreciation charge are as follows: reciation charge are as follows: reciation charge are as follows: follows:
September30,2024
December31,2023
September30,2023
Carryingamount
Carryingamount
Carryingamount
Land
350,002
$ 347,650
$ 360,085
$ Buildings
16,521
14,438
24,423
Transportation equipment
(business vehicles)
15,183
7,214
5,277
381,706
$ 369,302
$ 389,785
$ 2024
2023
Depreciationcharge
Depreciation charge
Land
2,618
$ 2,602
$ Buildings
3,987
9,314

Transportation equipment (business vehicles)
1,652
607

8,257
$ 12,523
$ 2024
2023
Depreciationcharge
Depreciation charge
Land
7,771
$ 7,787
$ Buildings
10,886
27,448
Transportation equipment (business vehicles)
3,694
1,336
22,351
$ 36,571
$ Threemonths ended September30,
Nine months endedSeptember30,		 December31,2023
September30,2023
Carryingamount
Carryingamount
347,650
$ 360,085
$ 14,438
24,423
7,214
5,277
369,302
$ 389,785
$ Threemonths ended September30,		 September30,2023
Carryingamount
360,085
$ 24,423
5,277
389,785
$
2023
Depreciation charge
2,602
$ 9,314

607
12,523
$
Depreciation charge
7,787
$ 27,448
1,336
36,571
$
  • D. For the nine months ended September 30, 2024 and 2023, the additions to right-of-use assets were $28,278 and $5,316, respectively.

~34~

E. The information on income and expense accounts relating to lease contracts is as follows:

Items affecting profit or loss
Interest expense on lease liabilities
Expense on short-term lease contracts
Items affecting profit or loss
Interest expense on lease liabilities
Expense on short-term lease contracts		 Threemonths ended September30, Threemonths ended September30,
2024
2023
Depreciationcharge
Depreciationcharge
165
$ 302
$ 1,916
2,040
Ninemonths ended September30,		 2023
Depreciationcharge
2024
Depreciationcharge
428
$ 6,759		 2023
Depreciationcharge
1,184
$ 6,744
  • F. For the nine months ended September 30, 2024 and 2023, the Group’s total cash outflow for leases were $21,452 and $39,574, respectively.

(10) Investment property

At January 1, 2024
Cost
Accumulated depreciation
2024
Opening net book amount
Depreciation charge
Closing net book amount
At September 30, 2024
Cost
Accumulated depreciation		 Buildings
Land
and structures
Total
439,519
$ 382,557
$ 822,076
$ -
237,003)
(
237,003)
(
439,519
$ 145,554
$ 585,073
$ 439,519
$ 145,554
$ 585,073
$ -
8,368)
(
8,368)
(
439,519
$ 137,186
$ 576,705
$ 439,519
$ 382,557
$ 822,076
$ -
245,371)
(
245,371)
(
439,519
$ 137,186
$ 576,705
$

~35~

==> picture [481 x 241] intentionally omitted <==

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

Buildings
Land and structures Total
At January 1, 2023
Cost $ 328,134 $ 277,381 $ 605,515
Accumulated depreciation - ( 154,497) ( 154,497)
$ 328,134 $ 122,884 $ 451,018
2023
Opening net book amount $ 328,134 $ 122,884 $ 451,018
Reclassification 111,385 31,236 142,621
-
Depreciation charge ( 8,088) ( 8,088)
Closing net book amount $ 439,519 $ 146,032 $ 585,551
At September 30, 2023
Cost $ 439,519 $ 308,617 $ 748,136
Accumulated depreciation - ( 162,585) ( 162,585)
$ 439,519 $ 146,032 $ 585,551
----- End of picture text -----

  • A. Rental income from the lease of the investment property and direct operating expenses arising from the investment property are shown below:
from the investment property are shown below:
Rental revenue from investment property
Direct operating expenses arising from the
investment property that generated rental
income during the period
Rental revenue from investment property
Direct operating expenses arising from the
investment property that generated rental
income during the period		 Threemonths ended September30,
2024
23,797
$ 3,807
$ 2024
71,302
$ 11,411
$		 2023
23,092
$
3,718
$
2023
67,283
$
11,138
$

  • B. For the year ended December 31, 2023, the Group reclassified property, plant and equipment to investment property with an amount of $142,621 due to the increase of the portion allocated for rentals.

  • C. The fair values of the investment property held by the Group as at September 30, 2024, December 31, 2023 and September 30, 2023 were $1,924,296, $1,941,842 and $1,820,601, respectively.

~36~

(11) Intangible assets

==> picture [481 x 497] intentionally omitted <==

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

Software Others Total
At January 1, 2024
Cost $ 162,514 $ 575 $ 163,089
Accumulated amortisation ( 132,754) ( 523) ( 133,277)
$ 29,760 $ 52 $ 29,812
2024
Opening net book amount $ 29,760 $ 52 $ 29,812
Additions 7,702 1,479 9,181
Amortisation charge ( 15,402) ( 535) ( 15,937)
Net exchange differences 695 2 697
Closing net book amount $ 22,755 $ 998 $ 23,753
At September 30, 2024
Cost $ 174,453 $ 1,796 $ 176,249
Accumulated amortisation ( 151,698) ( 798) ( 152,496)
$ 22,755 $ 998 $ 23,753
Trademarks Software Others Total
At January 1, 2023
Cost $ 846 $ 149,179 $ 575 $ 150,600
Accumulated amortisation ( 834) ( 112,095) ( 422) ( 113,351)
$ 12 $ 37,084 $ 153 $ 37,249
2023
Opening net book amount $ 12 $ 37,084 $ 153 $ 37,249
- -
Disposals 6,250 6,250
Amortisation charge ( 11) ( 16,431) ( 82) ( 16,524)
Net exchange differences - 475 4 479
Closing net book amount $ 1 $ 27,378 $ 75 $ 27,454
At September 30, 2023
Cost $ 846 $ 157,250 $ 575 $ 158,671
Accumulated amortisation ( 845) ( 129,872) ( 500) ( 131,217)
$ 1 $ 27,378 $ 75 $ 27,454
----- End of picture text -----

~37~

Details of amortisation on intangible assets are as follows:

(12) Short-term borrowings
Selling expenses
Administrative expenses
Research and development expenses
Selling expenses
Administrative expenses
Research and development expenses
Type of Borrowings
September30,2024
Bank borrowings
Unsecured borrowings
800,000
$ Secured borrowings
293,995
1,093,995
$ Type of Borrowings
December31,2023
Bank borrowings
Unsecured borrowings
400,000
$ Secured borrowings
25,000
425,000
$ Type of Borrowings
September30,2023
Bank borrowings
Unsecured borrowings
664,900
$		 2024
2023
6
$ 5
$ 3,858
4,005
1,619

1,519
5,483
$ 5,529
$ 2024
2023
16
$ 15
$ 11,243
12,073

4,678

4,436
15,937
$ 16,524
$ Threemonths ended September30,
Nine months ended September 30,
Interestraterange
Collateral
1.77%~1.83%
None
2.60%
Note
Interestraterange
Collateral
1.64%~1.67%
None
1.65%~1.69%
Note
Interest rate range
Collateral
1.64%~2.45%
None		 2024
2023
6
$ 5
$ 3,858
4,005
1,619

1,519
5,483
$ 5,529
$ 2024
2023
16
$ 15
$ 11,243
12,073

4,678

4,436
15,937
$ 16,524
$ Threemonths ended September30,
Nine months ended September 30,
Interestraterange
Collateral
1.77%~1.83%
None
2.60%
Note
Interestraterange
Collateral
1.64%~1.67%
None
1.65%~1.69%
Note
Interest rate range
Collateral
1.64%~2.45%
None
16,524
$
Collateral
None
Note
Collateral
None
Note
Collateral
None

Note: Please refer to Note 8 for an explanation.

Interest expense recognised in profit or loss amounted to $4,612, $3,771, $10,145 and $8,324 for the three months and nine months ended September 30, 2024 and 2023, respectively.

~38~

(13) Other accounts payable

Capital reduction payable (Note)
Cash dividends payable
Accrued payroll and bonus
Accrued royalty payable
Consumption goods expense payable
Accrued labor costs
Accrued taxes
Payable for equipment
Others		 September30,2024
December31,2023
September30,2023
601,000
$ -
$ 399,000
$ 401,200

-

-
436,692
286,868

333,611
302,347
210,039

208,720
67,302
69,423
55,527

56,922

24,678
28,754

11,928
42,642
49,590

591

43,123

-
303,447

348,743
275,619
2,181,429
$ 1,025,516
$ 1,350,821
$

Note: Information about the accrued payment for capital reduction is provided in Note 6(16).

(14) 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 Law. 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 1 month 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. Also, the Company would assess the balance in the aforementioned labor pension reserve account by the end of December 31, every year. If the account balance is insufficient to pay the pension calculated by the aforementioned method to the employees expected to qualify for retirement in the following year, the Company will make contributions for the deficit by next March.

  • (b) For the aforementioned pension plan, the Group recognised pension costs of $288, $391, $1,072 and $1,173 for the three months and nine months ended September 30, 2024 and 2023, respectively

  • (c) Expected contributions to the defined benefit pension plan of the Company for the year ending December 31, 2024 amount to $1,234.

  • B. (a) Effective July 1, 2005, the Company has established a defined contribution pension plan (the “New Plan”) under the Labor Pension Act (the “Act”), covering all regular employees with R.O.C. nationality. Under the New Plan, the Company contributes monthly an amount based on not less than 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.

~39~

  • (b) REI MAU and REI MAU Capital do not need to accrue pension costs as they do not have any employee.

  • (c) SPYGLASS and ABOUND did not establish their pension plans and the local regulations do not require any pension plan.

  • (d) ASEV, ALI and AVC appropriate a certain percentage of employees’ salaries to their designated pension accounts with financial institutions in accordance with employees’ pension plan.

  • (e) Raken and Amtran Electronic appropriate a certain percentage of local employees’ salaries as pension fund in compliance with the regulations on elderly insurance system of People’s Republic of China (PRC.). The appropriation percentage is 16%. The pension fund is managed and organised by the government. The Group shall appropriate monthly and has no further obligation.

  • (f) AVTC and VNTC appropriate a certain percentage of local employees’ salaries as pension fund in compliance with the regulations on elderly insurance system of the Socialist Republic of Vietnam. The percentage of salaries appropriated as pension fund is 14% for Vietnamese employees and 17.5% for foreign employees. The pension fund is managed and organised by the government. The Group shall appropriate monthly and has no further obligation.

  • (g) The pension costs under the defined contribution pension plans of the Group for the three months and nine months ended September 30, 2024 and 2023 were $24,972, $16,945, $70,824 and $53,009, respectively.

(15) Provisions

and $53,009, respectively.
Provisions
Analysis of total provisions:
At January 1
Additional provisions
Used during the period
At September 30
Current		 $ (
$ September30,2024
102,399
$		 2024
2023
98,186

146,999
$ 44,453
28,960
40,240)

41,400)
(
102,399
134,559
$ Nine months endedSeptember30,
December31,2023
September30,2023
98,186
$ 134,559
$
2024
98,186

$ 44,453
40,240)

(
102,399
$ December31,2023

98,186
$

The Group provides warranties on monitors and digital TV products sold. Provision for warranty is estimated based on historical warranty data of monitors and digital TV products. It is expected that provision for warranty will be used during the year.

(16) Share capital

  • A. As of September 30, 2024, the Company’s authorised capital was $12,000,000, consisting of 1.2 billion shares of ordinary stock (including 40 million shares reserved for employee stock options), and the paid-in capital was $6,800,000 with a par value of $10 (in dollars) per share. All proceeds from shares issued have been collected.

~40~

  • B. On March 13, 2024, the Board of Directors of the Company resolved to reduce its capital and refund cash to shareholders in order to adjust the capital structure and increase return on shareholders’ equity. The amount of cash capital reduction was $601,000, constituting 60,100 thousand shares, and the number of ordinary shares after capital reduction was 680,000 thousand shares. The capital reduction was approved by the shareholders during their meeting on June 12, 2024.

  • C. To maintain the Company’s credit rating and the shareholders’ equity, on March 13, 2023, the Board of Directors of the Company resolved to repurchase the Company’s outstanding ordinary shares in the amount of $211,846. On August 4, 2023, the Board of Directors proposed for the retirement of 18,000 thousand treasury shares, effective on August 8, 2023, and the Company’s paid-in capital would be $7,800,000. The registration of the retirement of treasury shares was completed on August 28, 2023.

  • D. On March 13, 2023, the Board of Directors proposed for a capital reduction amounting to $399,000 by retiring 39,900 thousand shares with an equivalent of $0.51 (in dollars) per share, and the capital reduction was approved by the shareholders during their meeting on June 15, 2023. After the reduction, the Company’s paid-in capital would be $7,401,000, consisting of 740,100 thousand shares of ordinary stock with a par value of $10 (in dollars) per share. The capital reduction was approved by the Securities and Futures Bureau, Financial Supervisory Commission on July 28, 2023, effective on August 9, 2023. The registration of the capital reduction was completed on October 17, 2023, and the amount has been paid.

  • (17) Capital surplus

Pursuant to the R.O.C. Company Law, 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 stocks 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 Law requires that the amount of capital surplus to be capitalised mentioned above should not exceed 10% of the paid-in capital each year. Capital surplus should not be used to cover accumulated deficit unless the legal reserve is insufficient.

At January 1
(At September 30)		 2024
Sharepremium
1,634,433
$		 Treasury share
transactions
610,962
$		 Changes in
ownership
interests
in subsidiaries
and associates
11,550
$		 Stock option
4,718
$		 Total
2,261,663
$

~41~

2023

Sharepremium
At January 1
1,672,150
$ Retirement of treasury share
37,717)
($ At September 30
1,634,433
$		 Treasury share
transactions
605,091
$ 5,871
$ 610,962
$		 Changes in
ownership
interests
in subsidiaries
and associates
11,550
$ -
$ 11,550
$		 Stock option
Total
4,718
$ 2,293,509
$ -
$ 31,846)
($ 4,718
$ 2,261,663
$

(18) Retained earnings

  • A. Where the Company accrues profit in the half year, it should first be reserved to pay tax and offset against accumulated deficit, and appropriate 10% of which as legal reserve unless legal reserve amounts to the total authorised capital. In addition, special reserve that has been appropriated or reversed in accordance with related regulations along with the unappropriated retained earnings of the first half of the year can be proposed by Board of Directors for earnings appropriation of dividends. The proposal of appropriation should be approved by the shareholders if dividends would be distributed by issuing new shares; it should be resolved by the Board of Directors if dividends would be distributed in the form of cash. The dividends must not be less than 20% of distributable retained earnings of current year. The dividend can be appropriated in cash or shares and cash dividends must not be less than 20% of total dividends.

  • B. To accompany the growth and overall environment of the high-tech sector, the Company’s dividend policy is based on the earnings, financial structure and the future development. In addition, the dividend is distributed according to the appropriation of the earnings. Stock dividend shall be based on the proportion to the reserves.

  • C. Except for covering accumulated deficit or issuing new stocks 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 stocks or cash to shareholders in proportion to their share ownership is permitted, provided that the distribution of the reserve is limited to the portion in excess of 25% of the Company’s paid-in capital.

  • D. 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.

  • E. The appropriations of earnings for 2023 and 2022 were resolved by the shareholders on June 12, 2024 and June 15, 2023, respectively. Details are summarized below:

~42~

Legal reserve appropriated
Special reserve appropriated
Distribution of cash dividends		 YearendedDecember31 YearendedDecember31 YearendedDecember31 YearendedDecember31
2023 2022
Amount
44,573
$ 27,377)
($ 401,200
$		 Dividends
per share
(in dollars)		 Amount
-
$ 87,794)
($ -
$		 Dividends
per share
(in dollars)
0.54
$		 -
$

The aforementioned resolutions are identical to the resolutions passed during the Board of Directors’ meeting held on March 13, 2023. The information on distribution of earnings will be posted on the “Market Observation Post System” of the TSEC.

F. Refer to Note 6(25) for details of employees’ compensation and directors' remuneration.

G. On August 8, 2024, the Board of Directors of the Company resolved not to distribute the unappropriated retained earnings for the first half of 2024.

  • (19) Other equity and non controlling interest items
2024
Other equity
Gain or loss
Currency on unrealised Non-controlling
translation valuation interestitems
At January 1 ($ 183,413)
 ($ 43,899)
 $ 160,501
Unrealised gains from
financial assets measured at
fair value through other
comprehensive income:
Revaluation-associates - 8,646 -
Revaluation transferred to - 47,215 -
retained earnings-gross
Currency translation differences:
-Group 184,797 - -
-Associates 8,059 - -
-Non-controlling interest - - -
Decrease in non-controlling
interest (Note) - - 3,082
Net profit attributable to ( 17,632)
non-controlling interest - - 14,285
At September 30 $ 9,443 $ 11,962 $ 160,236

~43~

2023
Other equity
Gain or loss
Currency on unrealised Non-controlling
translation valuation interestitems
At January 1 ($ 200,300)
 ($ 54,390)
 165,876
$
Unrealised gains from
financial assets measured at
fair value through other
comprehensive income:
Revaluation transferred to - 10,053 -
retained earnings-gross
Currency translation differences:
-Group 229,515
 - -
-Associates ( 1,108)
 - -
-Non-controlling interest - - -
Decrease in non-controlling
interest (Note) - - 5,550
Net profit attributable to ( 16,002)
non-controlling interest - - 10,319
At September 30 $ 28,107 ($ 44,337)
 165,743
$

Note: The consolidated entity distributed cash dividends, resulting to a decrease in non-controlling interest.

(20) Operating revenue

-
Revenue from contracts with customers
-
Revenue from contracts with customers		 Three months ended September 30, Three months ended September 30,
2024
2023
7,428,551
$ 4,953,528
$ Ninemonths ended September30,		 2023
4,953,528
$
2024
17,654,865
$		 2023
12,108,501
$

A. Disaggregation of revenue from contracts with customers

The Group derives revenue from the transfer of goods and services at a point in time in the following major product lines: digital television, display, stereo system and peripheral equipment.

~44~

Three months ended September 30,

2024 Taiwan USA China Others Total
Digital television $ 2,300,312
 $ -
 $ 733,988
 $ 17,050
 $ 3,051,350
Monitors 2,440,397 17,879 275,972
 25,319 2,759,567
Computer peripheral products 932,551 - 25,531
 183,102 1,141,184
Stereo system 265,775 49,880 -
 - 315,655
Others 132,752 8,830 15,023
 4,190 160,795
$ 6,071,787 $ 76,589 $ 1,050,514 $ 229,661 $ 7,428,551
Nine months ended September 30,
2024 Taiwan USA China Others Total
Digital television $ 5,270,758
 $ 13,502
 $ 1,734,943
 $ 58,375
 $ 7,077,578
Monitors 5,467,790 31,736 699,825 54,863 6,254,214
Computer peripheral products 2,471,059 - 73,071 448,223 2,992,353
Stereo system 820,579 116,604 - - 937,183
Others 338,399 14,930 30,348 9,860 393,537
$ 14,368,585 $ 176,772 $ 2,538,187 $ 571,321 $ 17,654,865
Three months ended September 30,
2023 Taiwan USA China Others Total
Digital television $ 1,657,200
 $ -
 $ 624,948
 $ 19,467
 $ 2,301,615
Monitors 1,271,875 23,816 303,955 13,888 1,613,534
Computer peripheral products 648,043 - 38,342 43,143 729,528
Stereo system 165,614 54,714 - -
 220,328
Others 65,222 8,792 11,185 3,324 88,523
$ 3,807,954 $ 87,322 $ 978,430 $ 79,822 $ 4,953,528
Nine months ended September 30,
2023 Taiwan USA China Others Total
Digital television $ 4,204,575
 $ 22,534
 $ 1,361,110
 $ 48,069
 $ 5,636,288
Monitors 3,151,680 71,019 839,348 28,916 4,090,963
Computer peripheral products 1,292,927 - 121,835 101,798 1,516,560
Stereo system 417,502 86,568 - - 504,070
Others 269,756 27,728 55,366 7,770 360,620
$ 9,336,440
 $ 207,849 $ 2,377,659 $ 186,553 $ 12,108,501

~45~

B. Contract liabilities

  • (a) The Group has recognised the following revenue-related contract liabilities:

September 30, 2024 December 31, 2023 September 30, 2023 January 1, 2023

Contract liabilities: Contract liabilitiesadvance sales receipts $ 34,165 $ 54,031 $ 13,131 $ 46,096

  • (b) Revenue recognised that was included in the contract liability balance at the beginning of the period:

==> picture [443 x 195] intentionally omitted <==

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

Three months ended September 30,
2024 2023
Revenue recognised that was included in
the contract liability balance at the
beginning of the period
- -
Contract liabilities-advance sales receipts $ $
Nine months ended September 30,
2024 2023
Revenue recognised that was included in
the contract liability balance at the
beginning of the period
Contract liabilities-advance sales receipts $ 54,031 $ 36,959
----- End of picture text -----

(21) Interest income

Interest income
Interest income from bank deposits
Interest income from bank deposits		 Three months endedSeptember30,
2024
2023
54,172
$ 48,890
$ Nine months endedSeptember30,		 2023
48,890
$
2024
171,934
$		 2023
145,045
$

~46~

(22) Other income

Three months ended September 30,

Threemonths ended September30, Threemonths ended September30,
Rental revenue
Dividend income
Other income, others
Rental revenue
Dividend income
Other income, others		 2024
2023
33,037
$ 51,917
$ 12,709
8,723
6,324
28,170
52,070
$ 88,810
$ 2024
2023
102,533
$ 155,018
$ 24,156
28,813
35,187
53,886
161,876
$ 237,717
$ Ninemonths ended September30,
155,018
$ 28,813
53,886
237,717
$

(23) Other gains and losses

Other gains and losses
Threemonths ended September 30,
2024 2023
(Loss) gain on disposal of property, plant and ($ 3,196)
 $ 2,515
equipment
Net currency exchange (loss) gain ( 120,674)
 97,700
Net gain (loss) on financial assets at fair value 95,423 ( 191,633)
through profit or loss
Other losses ( 3,802)
 ( 26,427)
($ 32,249) ($ 117,845)
Ninemonths ended September30,
2024 2023
(Loss) gain on disposal of property, plant and ($ 2,836)
 $ 2,467
equipment
Net currency exchange gain 15,218 172,706
Net gain (loss) on financial assets at fair value 712,213 ( 17,735)
through profit or loss
Gains on disposals of investments 437 -
Loss on disposal of investment - ( 41,140)
Other losses ( 17,784)
 ( 36,802)
$ 707,248 $ 79,496

~47~

(24) Finance costs

Interest expense: Bank borrowings Others

Interest expense: Bank borrowings Others

Threemonths ended Threemonths ended September30,
2024 2023
$ 4,612
 $ 3,771
300 551
$ 4,912
 $ 4,322
Nine months ended September 30,
2024 2023
$ 10,145
 $ 8,324
805 1,654
$ 10,950
 $ 9,978

(25) Expenses by nature

Employee benefit expense Wages and salaries Labor and health insurance fees Pension costs Directors' remuneration Other personnel expenses

Depreciation and amortisation

  • Depreciation charges on property, plant and

  • equipment (including investment property) Amortisation charges on right-of-use assets Amortisation charges on intangible assets

Threemonths ended September30, Threemonths ended September30,
2024
480,454
$ 19,652
25,260
20,550
50,526
596,442
$ 115,546
$ 8,257
5,483
129,286
$		 2023
400,138
$ 19,711
22,684
550
38,440
481,523
$
102,690
$ 12,523
5,529
120,742
$

~48~

Employee benefit expense
Wages and salaries
Labor and health insurance fees
Pension costs
Directors' remuneration
Other personnel expenses
Depreciation and amortisation
Depreciation charges on property, plant and
equipment (including investment property)
Amortisation charges on right-of-use assets
Amortisation charges on intangible assets		 2024
2023
1,307,725
$ 965,552
$ 60,357
60,936
71,896
67,601
61,200
9,860
141,164
102,119
1,642,342
$ 1,206,068
$ 303,432
$ 244,671
$ 22,351

36,571
15,937

16,524
341,720
$ 297,766
$ Ninemonths ended September30,

  • A. According to the Articles of Incorporation of the Company, a ratio of profit of the current year distributable, after covering accumulated losses, shall be distributed as employees' compensation and directors’ and supervisors’ remuneration. The ratio shall not be lower than 3% and shall not be higher than 3% for directors’ and supervisors’ remuneration.

  • B. For the three months and nine months ended September 30, 2024 and 2023, employees’ compensation was $55,000, $0, $110,000 and $21,000, respectively, while directors' and supervisors’ remuneration was $20,000, $0, $40,000 and $9,000, respectively. The aforementioned amounts were recognised in salary expenses.

  • C. In accordance with the Articles of Incorporation, employees’ compensation and directors’ and supervisors’ remuneration are accrued based on a certain percentage of estimated profit for the current period. For the nine months ended September 30, 2024 and 2023, employees’ compensation was accrued based on 8% and 5% of distributable profit for the period, and directors’ and supervisors’ remuneration were accrued based on 3% and 2% of distributable profit for the period, respectively.

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

~49~

(26) Income tax

A. Income tax expense

Components of income tax expense:

ome tax
Income tax expense
Components of income tax expense:
Threemonths ended September30,
2024 2023
Current tax:
Current tax on profits for the period $ 265,565
 $ 92,679
Prior year income tax (over) under estimation ( 748)
 10,133
Total current tax 264,817
 102,812
Deferred tax:
Origination and reversal of temporary
differences ( 224,097)
 ( 91,210)
Exchange rate effects ( 3,907)
 1,204
Total deferred tax ( 228,004)
 ( 90,006)
Income tax expense $ 36,813 $ 12,806
Ninemonths ended September30,
2024 2023
Current tax:
Current tax on profits for the period $ 449,911
 $ 187,839
Tax on undistributed surplus earnings 1,130 37
Prior year income tax over estimation ( 20,566)
 ( 3,198)
Total current tax 430,475 184,678
Deferred tax:
Origination and reversal of temporary
differences ( 210,228)
 ( 95,935)
Exchange rate effects ( 4,647)
 ( 203)
Total deferred tax
Income tax expense		 (
$		 214,875)

215,600
 (
$		 96,138)

88,540

B. The income tax returns of Amtran Technology Co., Ltd. and REI MAU ENTERPRISE Co., Ltd. through 2022, and of RICK TECHNOLOGY INC. through 2021, have been assessed and approved by the Tax Authority.

~50~

(27) 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
Employees’ compensation
Profit attributable to ordinary
shareholders of the parent plus
assumed conversion of all
dilutive potential ordinary shares
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
Employees’ compensation
Profit attributable to ordinary
shareholders of the parent plus
assumed conversion of all
dilutive potential ordinary shares		 Threemonths ended September30,2024
Weighted average
number of ordinary
Earnings
Amount
shares outstanding
per share
after tax
(shares in thousands)
(in dollars)
143,072
$ 700,904
0.20
$ 143,072
$ 700,904
-
5,000
143,072
$ 705,904
0.20
$ Threemonths ended September30,2023		 Earnings
per share
(in dollars)
0.20
$
0.20
$
Amount
after tax
46,507
$ 46,507
$ -
46,507
$		 Weighted average
number of ordinary
shares outstanding
(shares in thousands)
757,014
757,014
1,757
758,771		 Earnings
per share
(in dollars)
0.06
$
0.06
$

~51~

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
Employees’ compensation
Profit attributable to ordinary
shareholders of the parent plus
assumed conversion of all
dilutive potential ordinary shares
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
Employees’ compensation
Profit attributable to ordinary
shareholders of the parent plus
assumed conversion of all
dilutive potential ordinary shares		 Weighted average
number of ordinary
Earnings
Amount
shares outstanding
per share
aftertax
(sharesinthousands)
(indollars)
959,623
$
726,939

1.32
$ 959,623
$ 726,939
-
5,386
959,623
$ 732,325
1.31
$ Nine months endedSeptember30,2024
Ninemonths ended September30,2023		 Weighted average
number of ordinary
Earnings
Amount
shares outstanding
per share
aftertax
(sharesinthousands)
(indollars)
959,623
$
726,939

1.32
$ 959,623
$ 726,939
-
5,386
959,623
$ 732,325
1.31
$ Nine months endedSeptember30,2024
Ninemonths ended September30,2023		 Weighted average
number of ordinary
Earnings
Amount
shares outstanding
per share
aftertax
(sharesinthousands)
(indollars)
959,623
$
726,939

1.32
$ 959,623
$ 726,939
-
5,386
959,623
$ 732,325
1.31
$ Nine months endedSeptember30,2024
Ninemonths ended September30,2023
Amount
aftertax
349,145
$ 349,145
$ -
349,145
$		 Weighted average
number of ordinary
shares outstanding
(sharesinthousands)
780,222
780,222
1,757
781,979		 Earnings
per share
(indollars)
0.45
$
0.45
$

~52~

(28) Supplemental cash flow information

Investing activities with partial cash payments

Ninemonths ended Ninemonths ended Ninemonths ended September30,
0 2024 2023
Purchase of property, plant and equipment $ 271,256
 $ 203,767
Less: Opening balance of prepayments for
equipment ( 312,851)
 ( 49,863)
Add: Ending balance of prepayments for
equipment and land 700,011 172,922
Add: Opening balance of payable on
equipment 43,123
Less: Ending balance of payable on
equipment ( 591)
 -
Cash paid during the period $ 700,948
 $ 326,826

(29) Changes in liabilities from financing activities

Liabilities
Lease liabilities Guarantee from
Short-term (including deposits financing
borrowings current portion) received activities-gross
At January 1, 2024 $ 425,000
 $ 21,668
 $ 28,207
 $ 474,875
Changes in cash flow from
financing activities 668,995 ( 14,265)
 ( 2,984)
 651,746
Increase in lease liabilities - 28,278 - 28,278
Decrease in lease liabilities - ( 3,748)
 - ( 3,748)
Impact of changes in
foreign exchange rate - 72 433 505
At September 30, 2024 $ 1,093,995 $ 32,005 $ 25,656 $ 1,151,656
Liabilities
Lease liabilities Guarantee from
Short-term (including deposits financing
borrowings current portion) received activities-gross
At January 1, 2023 $ 430,000
 $ 55,718
 $ 34,080
 $ 519,798
Changes in cash flow
from financing activities 234,900 ( 31,646)
 ( 5,326)
 197,928
Increase in lease liabilities - 5,316 - 5,316
Impact of changes in
foreign exchange rate - 2,069 138 2,207
At September 30, 2023 $ 664,900 $ 31,457 $ 28,892 $ 725,249

~53~

7. RELATED PARTY TRANSACTIONS

(1) Names of related parties and relationship

==> picture [478 x 14] intentionally omitted <==

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

Names of related parties Relationship with the Group
----- End of picture text -----

Names of related parties Relationship withthe Group
RARA INC. (RARA) Other related party
Kuangtung Hua Jung Corporation (Hua Jung) Associate
Heroic Faith Medical Science Co., Ltd. (Heroic Faith) "

  • (2) Significant transactions and balances with related parties

  • A. Operating revenue:

Operating revenue:
Sales of goods:
Other related parties:
－RARA
Associates:
－Hua Jung
Sales of goods:
Other related parties:
－RARA
Associates:
－Hua Jung		 Threemonths ended September30,
2024
2023
117,462
$ 77,429
$ -
5
117,462
$ 77,434
$ Ninemonths ended September30,		 2023
77,429
$
5
77,434
$
2024
311,741
$ -
311,741
$		 2023
230,922
$
5
230,927
$

The sales prices are based on contractual terms. No similar transaction can be compared with. The credit terms are 60~90 days after monthly billings for the related parties. For third parties, credit terms are 30~90 days after monthly billings.

B. Purchases of goods:

terms are 30~90 days after monthly billings.
Purchases of goods:
Purchases of goods:
Associates
Purchases of goods:
Associates		 Threemonths ended September30,
2024
2023
2
$ 61
$ Ninemonths ended September30,		 2023
61
$
2024
32
$		 2023
77
$

The purchase prices are based on contractual terms, and payments are made by wire transfer. The payment terms are 55~120 days after monthly billings for the related parties and 30~120 days after monthly billings for third parties.

~54~

  • C. Receivables from related parties:

September 30, 2024 December 31, 2023 September 30, 2023 Other related parties: RARA $ 119,445 $ 156,008 $ 80,063

As of September 30, 2024, December 31, 2023 and September 30, 2023, the receivables from related parties were not past due and the counterparties have optimal credit quality.

D. Payables to related parties:

September 30, 2024 December 31, 2023 September 30, 2023 Accounts payable: Associates $ 13 $ 106 $ 66

E. Operating expenses

Three months ended September 30, 2024 2023

Other expenses: Other related parties RARA $ - $ 756 Nine months ended September 30, 2024 2023 Other expenses: Other related parties RARA $ 4,515 $ 3,875

(3) Key management compensation

Key management compensation
Short-term employee benefits
Post-employment benefits
Short-term employee benefits
Post-employment benefits		 Threemonths ended September30,
2024
2023
12,360
$ 10,252
$ 1,070
963
13,430
$ 11,215
$ Ninemonths ended September30,		 2023
10,252
$ 963
11,215
$
2024
29,960
$ 2,995
32,955
$		 2023
27,840
$ 2,891
30,731
$

~55~

8. PLEDGED ASSETS

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

==> picture [503 x 130] intentionally omitted <==

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

Book value
Pledged asset September 30, 2024 December 31, 2023 September 30, 2023 Purpose
Land $ 114,416 $ 114,416 $ 114,416 Long-term guarantee for
borrowings
Building and structures 32,392 33,273 33,566 "
Bank deposits (shown as Deposit for provisional
-
other non-current assets) 6,981 7,123 attachment of civil action
Bank deposits (shown as Bank's acceptance bill
other current assets) 1,904 1,811 -
$ 148,712 $ 156,481 $ 155,105
----- End of picture text -----

  • Note 1:The supplier, Xujing (Shanghai) Trading Co., Ltd., of the Group’s subsidiary, Suzhou Raken Technology Ltd. (‘Suzhou Raken’), filed a civil lawsuit against Suzhou Raken with the Suzhou People’s Court in June 2023. Xujing (Shanghai) Trading Co., Ltd. has requested that Suzhou Raken shall pay the disputed amount under the purchase contract from 2021 amounting to $6,909. Suzhou Raken had received a civil mediation agreement from the Suzhou People’s Court on July 16, 2024, and the lawsuit was terminated due to the successful mediation.

  • Note 2: On September 30, 2024, the Group also provided invoices amounting to USD 9,514 thousand arising from the sales between the parent and subsidiary companies within the consolidated entities as collateral for financing from the financial institutions.

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED CONTRACT

COMMITMENTS

(a) Contingencies

The supplier, Suzhou Hanraysun Optoelectronics Technology Co., Ltd., of the Group’s subsidiary, Suzhou Raken Technology Ltd. (‘Suzhou Raken’), filed a civil lawsuit against Suzhou Raken with the Suzhou People’s Court in July 2019. Suzhou Hanraysun Optoelectronics Technology Co., Ltd. has requested that Suzhou Raken shall pay the disputed amount under the purchase contract from 2020 to 2021 amounting to approximately $41,973. Suzhou Raken has appointed a lawyer to handle the lawsuit. The reason of the delay in the abovementioned amount was primarily caused by the quality issues with the supplier’s products, so the Group filed a complaint against Suzhou Hanraysun Optoelectronics Technology Co., Ltd. In addition to refusing to pay the abovementioned amount in accordance with the contract, the Group also requested that Suzhou Hanraysun Optoelectronics Technology Co., Ltd. shall indemnify the Group for the losses incurred due to the poor quality of its products. As of September 30, 2024, the court ruled in favor of the Group in the first trial, but Suzhou Hanraysun Optoelectronics Technology Co., Ltd. disagreed with the judgement and filed an appeal.

~56~

(b) Commitments

As of September 30, 2024 and 2023, the Group had capital expenditures contracted for at the balance sheet date but not yet incurred for property, plant and equipment in the amount of $156,095 and $89,055, respectively.

10. SIGNIFICANT DISASTER LOSS

None.

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

None.

12. OTHERS

(1) Capital management

The Company plans the needs for future operating capital, research and development expenses and dividend distribution based on the Group’s current operating characteristics and future development, taking into account changes in the external environment so as to safeguard the Company’s ability to continue as a going concern, provide returns for shareholders and maintain an optimal capital structure to enhance shareholders’ value in the long-term. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, issue new shares, return cash to shareholders or repurchase its own share.

(2) Financial instruments

A. Financial instruments by category

nancial instruments
Financial instruments by category
Financial assets
Financial assets mandatorily
measured at fair value
through profit or loss
Financial assets at fair value
through other comprehensive
income
Designation of equity
instruments
Financial assets at amortised cost
Financial liabilities
Financial liabilities at
amortised cost
Lease liabilities (including
current and non-current)		 September30,2024
1,183,453
$ 193,164
$ 12,960,354
$ 8,107,282
$ 32,005
$		 December31,2023
2,299,371
$ 184,435
$ 10,851,728
$ 5,778,456
$ 21,668
$		 September30,2023
2,814,954
$
1,869
$
11,052,669
$
6,516,114
$
31,457
$

Note: Financial assets at amortised cost included cash, accounts receivable, other receivables and

guarantee deposits paid. Financial liabilities at amortised cost included short-term borrowings, accounts payable, other payables and guarantee deposits received.

~57~

  • B. Financial risk management policies

  • The Group adopts an overall risk management and control system to identify and evaluate risk. The Group has a Chief Financial Officer (CFO) to manage all the risk management policies and risk controls. The main duty of the CFO is to oversee implementation of the Group's risk control strategies as follows:

  • (a) The Group uses derivative financial instruments to hedge the price, interest rate and exchange rate fluctuations, etc. of the Company’s assets and liabilities, when these affect profit or loss.

  • (b) The Group uses derivative financial instruments to hedge the exchange rate fluctuation arising from the foreign currency price of export or import transactions.

  • (c) Depending on the risk of the variation of derivative financial instruments, to set up stop-loss point to limit possible losses.

  • (d) To transact with international financial institutions with good credit standing.

  • (e) To maintain working capital sufficient to support the cash flows resulting from the above contracts and reduce funding risk.

The Group believes that the above financial risk control strategies can effectively lower each kind of risks that the Group encounters.

  • 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. Management has set up a policy to require group companies to manage their foreign exchange risk against their functional currency. The companies are required to hedge their entire foreign exchange risk exposure with the Group treasury. Exchange rate risk is measured through a forecast of highly probable USD and RMB expenditures. Forward foreign exchange contracts are adopted to minimise the volatility of the exchange rate affecting cost of forecast inventory purchases.

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

~58~

Foreign currency
amount
(Inthousands)
Exchangerate
Financial assets
Monetary items
USD:NTD
357,532
$ 31.65

USD:RMB
105,055

6.9976
USD:VND
119,252

24,460
Non-monetary items
USD:NTD
171,906
31.65

RMB:NTD
239,411
4.5230

Financial liabilities
Monetary items
USD:NTD
262,898
31.65
USD:RMB
55,480
6.9976
USD:VND
126,948
24,460
September30,2024
(Foreign currency: functional currency)
Foreign currency
amount
(Inthousands)
Exchangerate
Financial assets
Monetary items
USD:NTD
258,266
$ 30.71
USD:RMB
74,129
7.0973
USD:VND
88,717
24,090
Non-monetary items
USD:NTD
162,808
30.71
RMB:NTD
252,724
4.327
Financial liabilities
Monetary items
USD:NTD
186,027
30.7100
USD:RMB
13,722
7.0973
USD:VND
96,727
24,090
December31,2023
(Foreign currency: functional currency)		 Foreign currency
amount
(Inthousands)
Exchangerate
Financial assets
Monetary items
USD:NTD
357,532
$ 31.65

USD:RMB
105,055

6.9976
USD:VND
119,252

24,460
Non-monetary items
USD:NTD
171,906
31.65

RMB:NTD
239,411
4.5230

Financial liabilities
Monetary items
USD:NTD
262,898
31.65
USD:RMB
55,480
6.9976
USD:VND
126,948
24,460
September30,2024
(Foreign currency: functional currency)
Foreign currency
amount
(Inthousands)
Exchangerate
Financial assets
Monetary items
USD:NTD
258,266
$ 30.71
USD:RMB
74,129
7.0973
USD:VND
88,717
24,090
Non-monetary items
USD:NTD
162,808
30.71
RMB:NTD
252,724
4.327
Financial liabilities
Monetary items
USD:NTD
186,027
30.7100
USD:RMB
13,722
7.0973
USD:VND
96,727
24,090
December31,2023
(Foreign currency: functional currency)		 Book value
(NTD)
11,315,888
$ 3,325,006
3,774,326
5,440,824
1,082,857
8,320,722
1,755,950
4,017,904
Exchangerate
30.71
7.0973
24,090
30.71
4.327
30.7100
7.0973
24,090		 Book value
(NTD)
7,931,349
$ 2,276,503
2,724,499
4,999,837
1,093,535

5,712,889
421,403
2,970,487



~59~

September30,2023
Foreign currency
amount Book value
(Inthousands) Exchangerate (NTD)
(Foreign currency: functional currency)
Financial assets
Monetary items
USD:NTD $ 245,844
 32.27
 $ 7,933,386
USD:RMB 66,684
 7.3092 2,151,901
USD:VND 93,641
 24,230 3,021,795
Non-monetary items
USD:NTD 160,234 32.27 5,170,744
RMB:NTD 256,928 4.415
 1,134,337
Financial liabilities
Monetary items
USD:NTD 189,483
 32.27 6,114,616
USD:RMB 15,765 7.3092 508,738
USD:VND 102,128 24,230 3,295,671

  • iv. The total exchange gain (loss), including realised and unrealised, arising from significant foreign exchange variation on the monetary items held by the Group for the three months and nine months ended September 30, 2024 and 2023 amounted to ($120,674), $97,700, $15,218 and $172,706, respectively.

  • v. Analysis of foreign currency market risk arising from significant foreign exchange variation:

variation:
Effect on other
Degree of
Effect on
comprehensive
variation
profit or loss
income
Financial assets
Monetary items
USD:NTD
1%
113,159
$ -
$ USD:RMB
1%
33,250
-
USD:VND
1%
37,743
-
Non-monetary items
USD:NTD
1%
-
54,408
RMB:NTD
1%
-
10,829
Financial liabilities
Monetary items
USD:NTD
1%
83,207
-
USD:RMB
1%
17,560
-
USD:VND
1%
40,179
-
Nine months endedSeptember30,2024
SensitivityAnalysis
(Foreign currency: functional currency)		 Nine months endedSeptember30,2024
SensitivityAnalysis
Effect on
profit or loss
113,159
$ 33,250
37,743
-
-
83,207
17,560
40,179		 Effect on other
comprehensive
income
-
$ -
-
54,408
10,829
-
-
-



~60~

Nine months Nine months endedSeptember 30, 2023
SensitivityAnalysis
Effect on other
Degree of Effect on comprehensive
variation profit or loss income
(Foreign currency: functional currency)
Financial assets
Monetary items
USD:NTD 1% $ 79,334
 $ -
USD:RMB 1% 21,519 -
USD:VND 1% 30,218
 -
Non-monetary items
USD:NTD 1% - 51,707
RMB:NTD 1% - 11,343
Financial liabilities
Monetary items
USD:NTD 1% 61,146 -
USD:RMB 1% 5,087 -
USD:VND 1% 32,957 -

Price risk

  • i. The Group’s 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. To manage its price risk arising from investments in equity securities, the Group diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Group.

  • ii. The Group’s investments in equity securities comprise shares and open-end funds issued by the domestic/overseas 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 increased/decreased by 1% or floating discount rate changes by 1% with all other variables held constant, post-tax profit for the nine months ended September 30, 2024 and 2023 would have increased/decreased by $8,572 and $18,064, 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 $1,932 and $19, respectively, as a result of other comprehensive income on equity investments classified as at fair value through other comprehensive income.

Cash flow and fair value interest rate risk

  • i. The Group’s main interest rate risk arises from long-term borrowings with variable rates, which expose the Group to cash flow interest rate risk. As of September 30, 2024 and 2023, the Group’s borrowings at variable rate were mainly denominated in RMB dollars and NT dollars.

~61~

  • ii. At September 30, 2024 and 2023, if interest rates on borrowings had been 0.1% higher/lower with all other variables held constant, post-tax profit for the nine months ended September 30, 2024 and 2023 would have been $656 and $399 lower/higher, respectively, mainly as a result of changes in interest expense on floating rate borrowings.

  • (b) Credit risk

  • i. Credit risk refers to the risk of financial loss to the Group arising from default by the clients or counterparties of financial instruments on the contract obligations. The main factor is that counterparties could not repay in full the accounts receivable based on the agreed terms. Credit risk refers to the risk of financial loss to the Group arising from default by the clients or counterparties of financial instruments on the contract obligations. The main factor is that counterparties could not repay in full the accounts receivable based on the agreed terms, and the contract cash flows of financial instruments stated at amortised cost. The main factor is that counterparties could not repay in full the accounts receivable based on the agreed terms.

  • ii. The Group manages its credit risk taking into consideration the entire group’s concern. For banks and financial institutions, only independently rated parties with a minimum rating of 'A' are accepted. 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 clients before standard payment and delivery terms and conditions are offered. Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors.

  • iii. The Group adopts the assumption under IFRS 9, that is, the default occurs when the contract payments are past due over 90 days.

  • iv. The ageing analysis of accounts receivable and notes receivable that were past due but not impaired is as follows:

Not past due
Up to 30 days
31 to 90 days
Over 91 days		 September30,2024
5,604,252
$ 162,969
11,926
8,480
5,787,627
$		 December31,2023
3,335,109
$ 263,690
179
1,033
3,600,011
$		 September30,2023
4,109,830
$ 226,749
139
97
4,336,815
$
  • v. The Group classifies customer’s accounts receivable in accordance with the credit quality rating and used the forecastability of Business Indicators Database and Basel Committee on Banking Supervision to adjust historical and timely information to assess the default possibility of accounts receivable. According to the abovementioned consideration and information, the loss rate methodology as of September 30, 2024, December 31, 2023 and September 30, 2023 is as follows:

~62~

September 30, 2024
Expected loss rate
Total book value
Loss allowance
December 31, 2023
Expected loss rate
Total book value
Loss allowance
September 30, 2023
Expected loss rate
Total book value
Loss allowance		 Group
A
0.05%
119,445
$ 60
$ Group
A
0.05%
156,008
$ 78
$ Group
A
0.05%
80,063
$ 40
$		 Group
B
0.05%
5,653,135
$ 9,839
$ Group
B
0.05%
3,381,266
$ 9,675
$ Group
B
0.05%
4,138,315
$ 2,069
$		 Group
C
0.7%
15,047
$ 105
$ Group
C
0.7%~2.03%
62,737
$ 210
$ Group
C
0.27%~3.1%
118,437
$ 7,873
$		 Total
5,787,627
$ 10,004
$ Total
3,600,011
$ 9,963
$ Total
4,336,815
$ 9,982
$

Group A: Related parties. Group B: Customers with an excellent credit rating grade. Group C: Other customers.

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

allowance for accounts receivable are as follows:
At January 1
Provision for expected credit impairment loss
Effect of exchange rate changes
At September 30
At January 1
Provision for expected credit impairment loss
Effect of exchange rate changes
At September 30		 2024
Accountsreceivable
9,963
$ -
41
10,004
$
2023
Accountsreceivable
9,980
$ -
2
9,982
$

~63~

(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.

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

ii. Surplus cash held by the operating entities over and above balance required for working
capital management are transferred to the Group treasury. Group treasury invests surplus
cash in interest bearing current accounts, time deposits and marketable customers,
choosing instruments with appropriate maturities or sufficient liquidity to provide
sufficient headroom as determined by the abovementioned forecasts.		 ii. Surplus cash held by the operating entities over and above balance required for working
capital management are transferred to the Group treasury. Group treasury invests surplus
cash in interest bearing current accounts, time deposits and marketable customers,
choosing instruments with appropriate maturities or sufficient liquidity to provide
sufficient headroom as determined by the abovementioned forecasts.		 ii. Surplus cash held by the operating entities over and above balance required for working
capital management are transferred to the Group treasury. Group treasury invests surplus
cash in interest bearing current accounts, time deposits and marketable customers,
choosing instruments with appropriate maturities or sufficient liquidity to provide
sufficient headroom as determined by the abovementioned forecasts.		 ii. Surplus cash held by the operating entities over and above balance required for working
capital management are transferred to the Group treasury. Group treasury invests surplus
cash in interest bearing current accounts, time deposits and marketable customers,
choosing instruments with appropriate maturities or sufficient liquidity to provide
sufficient headroom as determined by the abovementioned forecasts.		 ii. Surplus cash held by the operating entities over and above balance required for working
capital management are transferred to the Group treasury. Group treasury invests surplus
cash in interest bearing current accounts, time deposits and marketable customers,
choosing instruments with appropriate maturities or sufficient liquidity to provide
sufficient headroom as determined by the abovementioned forecasts.
iii. The table below analyses the Group’s non-derivative financial liabilities and net-settled
or gross-settled 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 and to the expected maturity date for derivative financial
liabilities. The amounts disclosed in the table are the contractual undiscounted cash flows.
Non-derivative financial liabilities:
September 30, 2024 Less than 1year Over 1year
Accounts payable (including $ 4,806,202
 $ -
related parties)
Short-term borrowings 1,093,995 -
Other payables 2,181,429 -
Lease liabilities 17,628 14,377
Refund liabilities 246,332 -
Non-derivative financial liabilities:
December 31, 2023 Less than 1 year Over 1year
Accounts payable (including $ 4,299,733
 $ -
related parties)
Short-term borrowings 425,000 -
Other payables 1,025,516 -
Lease liabilities 15,491 6,177
Refund liabilities 219,908 -
Non-derivative financial liabilities:
September 30, 2023 Less than 1year Over 1year
Accounts payable (including $ 4,470,501
 $ -
related parties)
Short-term borrowings 664,900 -
Other payables 1,350,821 -
Lease liabilities 23,778 7,679
Refund liabilities 209,137 -

~64~

(3) Fair value information

  • 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. The fair value of the Group’s investment in listed stocks, beneficiary certificates and etc. is included in Level 1.

  • Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. The fair value of the Group’s investment in convertible bonds and most derivative instruments is included in Level 2.

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

  • B. Financial instruments not measured at fair value

  • The carrying amounts of cash and cash equivalents, notes receivable, accounts receivable (including related parties), other receivables, notes payable, accounts payable and other payables (including related parties) are approximate to their fair values.

  • C. The related information on 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 is as follows: (a) The related information on the nature of the assets and liabilities is as follows:

September 30, 2024
Level 1
Assets
Financial assets at fair value
through profit or loss
Equity securities
394,206
$ Debt securities
20,000
Beneficiary certificates
-
Derivative instruments
-
Hybrid instruments
164,649
Financial assets at fair value
through other comprehensive
income
Equity securities
-
Debt securities
191,249
770,104
$ Recurring fair value measurements		 Level 2
72,337
$ -
-
91,955
-
-
-
164,292
$		 Level3
268,573
$ -
171,733
-
-
1,915
-
442,221
$		 Total
735,116
$ 20,000
171,733
91,955
164,649
1,915
191,249
Financial assets at fair value
through profit or loss
Equity securities
Debt securities
Beneficiary certificates
Derivative instruments
Hybrid instruments
Financial assets at fair value
through other comprehensive
income
Equity securities
Debt securities
1,376,617
$

~65~

December 31, 2023
Level 1
Assets
Financial assets at fair value
through profit or loss
Equity securities
1,536,070
$ Debt securities
20,000

Beneficiary certificates
-
Derivative instruments
-
Hybrid instruments
177,487
Financial assets at fair value
through other comprehensive
income
Equity securities
-
Debt securities
182,603
1,916,160
$ Recurring fair value measurements
September 30, 2023
Level 1
Assets
Financial assets at fair value
through profit or loss
Equity securities
1,491,331
$ Debt securities
20,000

Beneficiary certificates
-
Derivative instruments
-
Hybrid instruments
175,510
Financial assets at fair value
through other comprehensive
income
Equity securities
-
1,686,841
$ Recurring fair value measurements		 Level 2
32,333
$ -
-

59,810
-

-
-
92,143
$ Level 2
37,264
$ -
-
536,910
-
-
574,174
$		 Level3
312,433
$ -

161,238
-

-

1,832

-
475,503
$ Level3
333,542
$ -
220,397
-
-

1,869
555,808
$		 Total
1,880,836
$ 20,000
161,238
59,810
177,487
1,832
182,603
2,483,806
$
Total
1,862,137
$ 20,000
220,397
536,910
175,510
1,869
Financial assets at fair value
through profit or loss
Equity securities
Debt securities
Beneficiary certificates
Derivative instruments
Hybrid instruments
Financial assets at fair value
through other comprehensive
income
Equity securities
2,816,823
$

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

  • i. The instruments the Group used market quoted prices as their fair values (that is, Level

    • 1) are listed below by characteristics:

Listed shares Open-end fund Convertible bond Market quoted price Closing price Net asset value Closing

  • ii. 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, other valuation methods, including calculated by applying model using market information available at the consolidated balance sheet date.

~66~

  • iii. When assessing non-standard and low-complexity financial instruments, for example, foreign exchange swap contracts, the Group adopts valuation technique that is widely used by market participants. The inputs used in the valuation method to measure these financial instruments are normally observable in the market.

  • iv. The valuation of derivative financial instruments is based on valuation model widely accepted by market participants, such as present value techniques and option pricing models. Forward exchange contracts are usually valued based on the current forward exchange rate.

  • v. The Group takes into account adjustments for credit risks to measure the fair value of financial and non-financial instruments to reflect credit risk of the counterparty and the Group’s credit quality.

  • D. For the nine months ended September 30, 2024 and 2023, there was no transfer between Level 1 and Level 2.

  • E. The following chart is the movement of Level 3 for the nine months ended September 30, 2024 and 2023:

and 2023:
2024
Foreign
Equity securities venture capital Total
At January 1 $ 314,265
 $ 161,238
 $ 475,503
Gains recognised in profit or loss ( 34,223)
 10,495 ( 23,728)
Disposed of during the period ( 10,722)
 - ( 10,722)
Effect of exchange rate 1,168 - 1,168
At September 30 $ 270,488
 $ 171,733 $ 442,221
2023
Foreign
Equity securities venture capital Total
At January 1 $ 295,933
 $ 336,666
 $ 632,599
Gains recognised in profit or loss 18,069 ( 30,662)
 ( 12,593)
Disposed of during the period ( 39,101)
 ( 85,607)
 ( 124,708)
Acquisition of during the period 58,888 - 58,888
Effect of exchange rate 1,622 - 1,622
At September 30 $ 335,411 $ 220,397 $ 555,808

~67~

  • F. In the valuation process of categorising the fair value into Level 3, the Group’s investment segment or the appointed third party conducts independent verification for the fair value of financial instruments by matching the valuation result with market status through independent resource, verifying its independence, reliability, consistency with other resource and representation of viable price. Besides, the segment regularly calibrates the valuation model, conducts retrospective tests, updates the values of input, data, and makes any other necessary adjustment to the fair value to ensure the valuation result is reasonable.

  • G. The details about quantified information in relation to significant unobservable inputs for measuring the fair value of Level 3 and sensitivity analysis of significant unobservable inputs is listed below and Note 12(3)8:

==> picture [476 x 44] intentionally omitted <==

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

Fair value at Significant Range Relationship
September 30, Valuation unobservable (weighted of inputs
2024 technique inputs average) to fair value
----- End of picture text -----

Non-derivative
equity instruments
Unlisted shares
Unlisted shares
(including venture
capital shares and
funds)
Non-derivative
equity instruments
Unlisted shares
Unlisted shares
(including venture
capital shares and
funds)		 161,175
$ Market
comparable
companies
Operating income
multiple price to
book ratio multiple
and price to
earnings ratio
multiple
0.31~1.70
(0.98)
The higher the
multiple, the
higher the fair
value
281,046
Net asset
value
Not applicable
Not applicable
The higher the net
asset value, the
higher the fair
value
Fair value at
Significant
Range
Relationship
December 31,
Valuation
unobservable
(weighted
of inputs
2023
technique
inputs
average)
to fairvalue
191,932
$ Market
comparable
companies
Operating income
multiple price to
book ratio multiple
and price to
earnings ratio
multiple
0.75~2.00
(1.14)
The higher the
multiple, the
higher the fair
value
283,571
Net asset
value
Not applicable
Not applicable
The higher the net
asset value, the
higher the fair
value

~68~

Non-derivative
equity instruments
Unlisted shares
Unlisted shares
(including venture
capital shares and
funds)		 Fair value at
Significant
Range
Relationship
September 30,
Valuation
unobservable
(weighted
of inputs
2023
technique
inputs
average)
to fairvalue
185,037
$ Market
comparable
companies
Operating income
multiple price to
book ratio multiple
and price to
earnings ratio
multiple
0.69~1.64
(1.02)
The higher the
multiple, the
higher the fair
value
370,771
Net asset
value
Not applicable
Not applicable
The higher the net
asset value, the
higher the fair
value
  • H. The Group has carefully assessed the valuation models and assumptions used to measure fair value. However, use of different valuation models or assumptions may result in different measurement. The following is the effect on profit or loss or on other comprehensive income from financial assets and liabilities categorised within Level 3 if the inputs used to valuation models have changed:
models have changed:
Input
Financial assets
Equity
instrument
Price to book
ratio multiple
Equity
instrument
Not applicable
Input
Financial assets
Equity
instrument
Price to book
ratio multiple
Equity
instrument
Not applicable		 Change
± 1%
± 1%
Change
± 1%
± 1%		 September Favourable
Unfavourable
change
change
-
$ -
$ 19
19
19
$ 19
$ 30,2024
Recognised in other
comprehensive income
Favourable
Unfavourable
change
change
-
$ -
$ 18
18
18
$ 18
$ 31,2023
Recognised in other
comprehensive income
Favourable
Unfavourable
change
change
1,612
$ 1,612
$ 2,791
2,791
4,403
$ 4,403
$ Recognised in
profit or loss
December
Favourable
Unfavourable
change
change
1,919
$ 1,919
$ 2,818
2,818
4,737
$ 4,737
$ Recognised in
profit or loss

~69~

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

September 30, 2023
Recognised in Recognised in other
profit or loss comprehensive income
Favourable Unfavourable Favourable Unfavourable
Input Change change change change change
Financial assets
Equity Price to book ± 1% $ 1,850 $ 1,850 $ - $ -
instrument ratio multiple
Equity
Not applicable
instrument ± 1% 3,689 3,689 19 19
$ 5,539 $ 5,539 $ 19 $ 19
----- End of picture text -----

13. SUPPLEMENTARY DISCLOSURES

(1) Significant transactions information

Information on significant transactions as of and for the nine months ended September 30, 2024 in conformity with the “Rules Governing the Preparation of Financial Statements by Securities Issuers” are as follows. In addition, inter-company transactions between companies were eliminated. The following disclosures are for reference only:

  • A. Loans to others: Refer to table 1.

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

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

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

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

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

  • G. Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more: Refer to table 5.

  • H. Receivables from related parties reaching $100 million or 20% of paid-in capital or more: Refer to table 6.

  • I. Trading in derivative instruments undertaken during the reporting periods: Refer to Notes 6(2) and 12(3).

  • J. Significant intragroup transactions during the reporting periods: Refer to table 7.

(2) Information on investees

Names, locations and other information of investee companies (not including investees in Mainland China): Refer to table 8.

(3) Information on investments in Mainland China

  • A. Basic information: Refer to table 9.

~70~

  • B. Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland Area: Refer to table 5, 6 and 7.

(4) Major shareholders information

Major shareholders information: The Company has no shareholders holding more than 5% of issued shares.

14. SEGMENT INFORMATION

(1) General information

The Group prepares segment information based on the geographical area for the management review. At present, the Company’s primary sales locations are Taiwan, America and China. Due to the fact that the sales channel, nature of products and other influential elements are heavily affected by geographical factors, the operating management implemented different financial management and performance method for the three areas. Therefore, the reportable segments are Taiwan, America and China.

(2) Operating segments evaluation

The Company evaluates operating segments’ performance based on operating revenue and net income before income tax. All operating segments implemented the Group accounting policies which are detailed in Note 4 of the consolidated financial statements. The transactions between segments are conducted based on fair trading principle. The external revenue submitted to key operation decision makers is consistent with the revenue in the statement of comprehensive income. The reconciliation information about comprehensive income before tax of reportable segments after adjustment in current period is described in Note 14(3).

~71~

(3) Information on segment profit and loss

The segment information provided to the chief operating decision-maker for the reportable segment is as follows:

Three months ended September 30, 2024

Income from arm's length parties Interdepartmental transaction Segment income (loss), before tax Segment income (loss), net of tax

Income from arm's length parties Interdepartmental transaction Segment income (loss), before tax Segment income (loss), net of tax

==> picture [492 x 226] intentionally omitted <==

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

Eliminated by
Taiwan Americas China Others consolidation Consolidated
$ 6,071,787 $ 76,589 $ 1,050,514 $ 229,661 $ - $ 7,428,551
679,007 - 1,805,831 4,679,086 ( 7,163,924) -
$ 6,750,794 $ 76,589 $ 2,856,345 $ 4,908,747 ($ 7,163,924) $ 7,428,551
$ 205,301 $ 10,639 ($ 102,194) $ 166,967 ($ 96,780) $ 183,933
$ 155,533 $ 9,005 ($ 86,496) $ 165,858 ($ 96,780) $ 147,120
Nine months ended September 30, 2024
Eliminated by
Taiwan Americas China Others consolidation Consolidated
$ 14,368,585 $ 176,772 $ 2,538,187 $ 571,321 $ - $ 17,654,865
1,322,321 - 4,050,995 11,343,109 ( 16,716,425) -
$ 15,690,906 $ 176,772 $ 6,589,182 $ 11,914,430 ($ 16,716,425) $ 17,654,865
$ 1,257,397 $ 27,247 ($ 232,439) $ 403,458 ($ 266,155) $ 1,189,508
$ 1,020,462 $ 25,456 ($ 201,669) $ 395,814 ($ 266,155) $ 973,908
----- End of picture text -----

~72~

Three months ended September 30, 2023

Income from arm's length parties Interdepartmental transaction

Segment income (loss), before tax Segment income (loss), net of tax

Taiwan
3,807,954
$ 247,838

4,055,792
$ 58,942
$ 48,871
$		 Americas
87,322
$ -
87,322
$ 2,682
$ 2,697
$		 China
978,430
$ 1,130,540
2,108,970
$ 6,522
$ 3,883
$		 Eliminated by
Others
consolidation
79,822
$ -
$ 2,889,837
4,268,215)
(
2,969,659
$ 4,268,215)
($ 77,749
$ 83,795)
($ 77,638
$ 83,795)
($		 Consolidated
4,953,528
$ -
4,953,528
$
62,100
$
49,294
$

Nine months ended September 30, 2023

Income from arm's length parties Interdepartmental transaction

Segment income (loss), before tax Segment income (loss), net of tax

Nine months ended September30,2023
Taiwan
Americas
9,336,440
$ 207,849
$ 700,683
-
10,037,123
$ 207,849
$ 422,188
$ 2,138)
($ 372,427
$ 972)
($		 China
2,377,659
$ 3,299,291
5,676,950
$ 229,867
$ 190,571
$		 Eliminated by
Others
consolidation
186,553
$ -
$ 6,667,684
10,667,658)
(
6,854,237
$ 10,667,658)
($ 121,202
$ 323,115)
($ 120,553
$ 323,115)
($		 Consolidated
12,108,501
$ -
12,108,501
$
448,004
$
359,464
$

~73~

AMTRAN TECHNOLOGY CO., LTD. AND ITS SUBSIDIARIES

Loans to others

Nine months ended September 30, 2024

Table 1

Expressed in thousands of NTD (Except as otherwise indicated)

No.
（Note1）		 Creditor Borrower General
ledger
account		 Is a
related
party		 Maximum
outstanding
balance during the
nine months ended
September
30,2024		 Balance at
September
30,2024		 Actual amount
drawndown		 Interest
rate		 Nature of
loan
（Note2）		 Amount of
transactions
with the
borrower		 Reason
for short-term
financing		 Allowance
for
doubtful
accounts		 Collateral Collateral Limit on loans
granted to
a single party
(Note 3)		 Ceiling on
total loans
granted
(Note 3)		 Footnote
Item Value
0 Amtran
Technology
Co., Ltd.		 AMTRAN
VIETNAM
TECHNOLOG
Y COMPANY
LIMITED		 Other
receivables
–related
parties		 Y 328,350
$		 316,500
$		 -
$		 Based on
the
agreement		 2 -
$		 For acquisitions
of equipment and
operational needs		 -
$		 None -
$		 2,704,170
$		 5,408,341
$

Note 1: The numbers filled in for the loans provided by the Company or subsidiaries are as follows:

  • (1) The Company is ‘0’.

  • (2) The subsidiaries are numbered in order starting from ‘1’.

Note 2: The column of ‘Nature of loan’ shall fill in ‘Business transaction or ‘Short-term financing:

  • (1) The Business association is ‘1’.

  • (2) The Short-term financing are numbered in order starting from ‘2’

Note 3: Ceiling on total loans granted shall not exceed 40% of the Company’s net asset value. Limit on loans granted to a single party shall not exceed 10% of the Company’s net asset value, except for the subsidiaries, which have 90% voting shares held by the Company, shall not exceed 20% of the Company's net asset value.

Table 1, Page 1

AMTRAN TECHNOLOGY CO., LTD. AND ITS SUBSIDIARIES

Provision of endorsements and guarantees to others Nine months ended September 30, 2024

Number
（Note1）
Table 2		 Endorser/
guarantor		 Party being
endorsed/guaranteed		 Party being
endorsed/guaranteed		 Limit on
endorsements/
guarantees
provided for a
single party
(Notes 3 and 8)		 Maximum
outstanding
endorsement/
guarantee
amount as of
September
30, 2024
(Note4)		 Outstanding
endorsement/
guarantee
amount at
September
30, 2024
(Note 5)		 Actual amount
drawn down
(Note 6)		 Amount of
endorsements/
guarantees
secured with
collateral		 Ratio of
accumulated
endorsement/
guarantee
amount to net
asset value of
the endorser/
guarantor
company		 Ceiling on
total amount of
guarantees
provided
(Notes 3 and 8)		 Provision of
endorsements/
guarantees by
parent
company to
subsidiary
(Note7)		 Provision of
Provision of
endorsements/
endorsements/
guarantees by
guarantees to
subsidiary to
the party in
parent
Mainland
company
China
(Note7)
(Note7)
Footnote
Expressed in thousands of NTD
(Except as otherwise indicated)		 Provision of
Provision of
endorsements/
endorsements/
guarantees by
guarantees to
subsidiary to
the party in
parent
Mainland
company
China
(Note7)
(Note7)
Footnote
Expressed in thousands of NTD
(Except as otherwise indicated)		 Provision of
Provision of
endorsements/
endorsements/
guarantees by
guarantees to
subsidiary to
the party in
parent
Mainland
company
China
(Note7)
(Note7)
Footnote
Expressed in thousands of NTD
(Except as otherwise indicated)
Companyname Relationship
with the
endorser/
guarantor
(Note2)
0
0		 Amtran
Technology
Co., Ltd.
Amtran
Technology
Co., Ltd.		 AMTRAN
VIETNAM
TECHNOLOGY
COMPANY
LIMITED
RICK
TECHNOLOGY
INC.		 2
2		 2,704,170
$ 2,704,170		 1,477,575
$ 1,477,575		 1,012,800
$ 411,450		 $ -
-		 $ -
-		 7.49
3.04		 6,760,426
$ 6,760,426		 Y
Y		 N
N		 N
N

Note 1: The numbers filled in for the endorsements/guarantees provided by the Company or subsidiaries are as follows:

  • (1) The Company is ‘0’.

  • (2) The subsidiaries are numbered in order starting from ‘1’.

Note 2: Relationship between the endorser/guarantor and the party being endorsed/guaranteed is classified into the following six categories; fill in the number of category each case belongs to:

  • (1) Having business relationship.

  • (2) The endorser/guarantor parent company owns directly more than 50% voting shares of the endorsed/guaranteed subsidiary.

  • (3) The endorser/guarantor parent company and its subsidiaries jointly own more than 50% voting shares of the endorsed/guaranteed company.

  • (4) The endorsed/guaranteed parent company directly or indirectly owns more than 50% voting shares of the endorser/guarantor subsidiary.

  • (5) Mutual guarantee of the trade as required by the construction contract.

  • (6) Due to joint venture, each shareholder provides endorsements/guarantees to the endorsed/guaranteed company in proportion to its ownership.

Note 3: Fill in limit on endorsements/guarantees provided for a single party and ceiling on total amount of endorsements/guarantees provided as prescribed in the endorser/guarantor company’s “Procedures for Provision of Endorsements and Guarantees”, and state each individual party to which the endorsements/guarantees have been provided and the calculation for ceiling on total amount of endorsements/guarantees provided in the footnote.

Note 4: Fill in the year-to-date maximum outstanding balance of endorsements/guarantees provided as of the reporting period.

  • Note 5: Once endorsement/guarantee contracts or promissory notes are signed/issued by the endorser/guarantor company to the banks, the endorser/guarantor company bears endorsement/guarantee liabilities. And all other events involve endorsements and guarantees should be included in the balance of outstanding endorsements and guarantees.

Note 6: Fill in the actual amount of endorsements/guarantees used by the endorsed/guaranteed company.

Note 7: Fill in ‘Y’ for those cases of provision of endorsements/guarantees by listed parent company to subsidiary and provision by subsidiary to listed parent company, and provision to the party in Mainland China.

Note 8: Ceiling on total amount of endorsements/guarantees provided shall not exceed 50% of the Company's latest net assets; limit on endorsement/guarantee to a single party shall not exceed 10% of the Company's net assets, except for

the subsidiaries, which have 90% voting shares held by the Company directly, shall not exceed 20% of the Company's net asset value as prescribed in the Company’s “Procedures for Provision of Loans”. The net assets were based on the latest audited financial statements of the Company.

Table 2, Page 1

Expressed in thousands of NTD

AMTRAN TECHNOLOGY CO., LTD. AND ITS SUBSIDIARIES

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

Nine months ended September 30, 2024

Table 3

(Except as otherwise indicated)

Securities held by Marketable securities
（Note 1）		 Relationship with the
securities issuer(Note 2)		 General
ledger account		 As ofSeptember30,2024 As ofSeptember30,2024 Footnote
（Note 4）
Number of shares
(in thousands)		 Book value
(Note3)		 Ownership (%) Fairvalue
Amtran Technology Co., Ltd.
Amtran Technology Co., Ltd.		 Domestic and foreign listed stocks
CTBC Financial Holding Co., Ltd. Preferred Shares B
Fubon Financial Holding Co., Ltd. Preferred Shares A
Cathay Financial Holding Co., Ltd. Preferred Stock A
Foxtron Vehicle Technologies Co., Ltd.
Hon Hai Precision Industry Co., Ltd.
Inventec Corporation
Wistron Corporation
Realfiction Holding AB
Xiaomi Corporation
DOG-Proshares Short Dow30
Telefonaktiebolaget LM Ericsson B ADR (ERIC)
Domestic and foreign unlisted stocks
Ordinary shares of Neweb Technologies Co., Ltd.
Jason's Entertainment Co., Ltd.
V5 TECHNOLOGIES CO., LTD.
I-Serve Holdings Limited
Sustainable Development Co., Ltd.
OWLINK TECHNOLOGY, INC.
FUGOO CORP.
Ordinary shares of Yu-Chi Venture Capital Investment
Corporation
17LIFE INC.
RFIC TECHNOLOGY CORPORATION
Fuyo Venture Capital Limited Partnership		 -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Current financial assets at fair
value through profit or loss
〞
〞
〞
〞
〞
〞
〞
〞
〞
〞
Current financial assets at fair
value through profit or loss
〞
〞
〞
〞
〞
〞
〞
〞
〞
〞		 1,098
392
270
1,200
100
100
40
1,863
170
2
8
716
610
7,399
1,000
566
Note 5
Note 6
248
750
1,000
-		 66,429
$ 24,265
16,335
55,440
18,750
4,310
4,040
105,632
15,587
1,872
1,919		 0.22%
0.02%
0.02%
0.07%
0.00%
0.00%
0.00%
9.42%
0.00%
0.04%
0.00%
0.95%
3.82%
3.60%
1.87%
0.76%
8.47%
20.00%
3.75%
4.17%
3.50%
5.77%		 66,429
$ 24,265
16,335
55,440
18,750
4,310
4,040
105,632
15,587
1,872
1,919
314,579 314,579
14,860
10,010
72,088
-
5,658
108,338
-
4,112
-
3,269
19,615		 14,860
10,010
72,088
-
5,658
108,338
-
4,112
-
3,269
19,615
237,950 237,950

Table 3, Page 1

Securities held by Marketable securities
（Note 1）		 Relationship with the
securities issuer(Note 2)		 General
ledger account		 As ofSeptember30,2024 As ofSeptember30,2024 Footnote
（Note 4）
Number of shares
(in thousands)		 Book value
(Note3)		 Ownership (%) Fairvalue
Amtran Technology Co., Ltd.
Amtran Technology Co., Ltd.
Amtran Technology Co., Ltd.		 Domestic bonds -
Bank Cathay 1st perpetual cumulative subordinated
corporate bond issue in 2019
MS Medium Term Notes 1.164%
JP Notional Notes 5.546%
HSBC Notional Notes 5.887%
Foreign Venture Fund
Yuanta Daily Taiwan 50 Bear -1X ETF
CHERUBIC VENTURES FUND II L.P
CHERUBIC VENTURES FUND IV, L.P
Foreign stock linked fund
Worst of KI RCN UBSL 14.60%
Worst of KI RCN UBSL 11.84%
KI RCN UBS London 40.52%		 -
-
-
-
-
-
-
-
-
-		 Current financial assets at fair
value through profit or loss
Current financial assets at fair
value through other
comprehensive income
〞
〞
Current financial assets at fair
value through profit or loss
〞
〞
〞
〞
〞		 -
-
-
-
170
-
-
-
-
-		 20,000
$ 63,111
63,135
65,003		 -
-
-
-
-
-
-
-
-		 20,000
$ 63,111
63,135
65,003
211,249 211,249
578
138,410
33,323		 578
138,410
33,323
172,311 172,311
15,840
16,050
30,783		 15,840
16,050
30,783
62,673 62,673
998,762
$		 998,762
$

Note 1: Marketable securities in the table refer to stocks, bonds, beneficiary certificates and other related derivative securities.

Note 2: Leave the column blank if the issuer of marketable securities is non-related party.

Note 3: Fill in the amount after adjusted at fair value and deducted by accumulated impairment for the marketable securities measured at fair value; fill in the acquisition cost or amortised cost deducted by accumulated impairment for the marketable securities not measured at fair value.

Note 4: The number of shares of securities and their amounts pledged as security or pledged for loans and their restrictions on use under some agreements should be stated in the footnote if the securities presented herein have such conditions. Note 5: As of September 30, 2024, the Company held 1,200 thousand Series A Stock preference shares, 2,100 thousand Seris B Stock shares and 1,200 thousand Seed Preferred Stock shares of Owlink Technology, Inc.,constituting 8.47% of shareholding ratio. Note 6: As of September 30, 2024, the Company held 200 thousand preference shares of Fugoo Corp., constituting 20.00% of total preference shares.

Table 3, Page 2

Securities held by Marketable securities
（Note 1）		 Relationship with the
securities issuer(Note 2)		 General
ledger account		 As ofSeptember30,2024 As ofSeptember30,2024 Footnote
（Note 4）
Number of shares
(in thousands)		 Book value
(Note3)		 Ownership (%) Fairvalue
REI MAU ENTERPRISE CO., LTD.
REI MAU ENTERPRISE CO., LTD.		 Domestic listed stocks
Fubon Financial Holding Co., Ltd. Preferred Shares A
Cathay Financial Holding Co., Ltd. Preferred Stock A
Domestic and foreign unlisted stocks
Silcon Tech., Inc.
Hua-ke material technology Inc.
NEW SMART TECHNOLOGY CO., LTD.
Golden Sapphire International Co., Ltd.		 -
-
-
-
-
-		 Current financial assets at fair
value through profit or loss
〞
〞
〞
〞
〞		 698
602
1,604
234
195
28		 43,206
$ 36,421
79,627
62,327
8
5,759
1,000
69,094
148,721
$		 0.04%
0.04%
6.82%
1.11%
0.89%
17.92%		 43,206
$ 36,421
79,627
62,327
8
5,759
1,000
69,094
148,721
$

Note 1: Marketable securities in the table refer to stocks, bonds, beneficiary certificates and other related derivative securities.

Note 2: Leave the column blank if the issuer of marketable securities is non-related party.

Note 3: Fill in the amount after adjusted at fair value and deducted by accumulated impairment for the marketable securities measured at fair value; fill in the acquisition cost or amortised cost deducted by accumulated impairment for the marketable securities not measured at fair value.

Note 4: The number of shares of securities and their amounts pledged as security or pledged for loans and their restrictions on use under some agreements should be stated in the footnote if the securities presented herein have such conditions.

Table 3, Page 3

Securities held by Marketable securities
（Note 1）		 Relationship with the
securities issuer(Note 2)		 General
ledger account		 As ofSeptember30,2024 As ofSeptember30,2024 Footnote
（Note 4）
Number of shares
(in thousands)		 Book value
(Note3)		 Ownership (%) Fairvalue
RICK TECHNOLOGY INC. Foreign stock linked fund
FCN-766-D
FCN-022-E
DSNI34973
FCN-246-E
FCN-488-E
FCN-982-E
FCN-986-E
FCN-056-F
FCN-058-F
FCN-086-F		 -
-
-
-
-
-
-
-
-
-		 Current financial assets at fair
value through profit or loss
〞
〞
〞
〞
〞
〞
〞
〞
〞		 -
-
-
-
-
-
-
-
-
-		 9,528
$ 9,519
9,605
9,462
12,511
9,599
9,525
9,495
9,495
12,660
101,399
$		 -
-
-
-
-
-
-
-
-
-		 9,528
$ 9,519
9,605
9,462
12,511
9,599
9,525
9,495
9,495
12,660
101,399
$

Note 1: Marketable securities in the table refer to stocks, bonds, beneficiary certificates and other related derivative securities.

Note 2: Leave the column blank if the issuer of marketable securities is non-related party.

Note 3: Fill in the amount after adjusted at fair value and deducted by accumulated impairment for the marketable securities measured at fair value; fill in the acquisition cost or amortised cost deducted by accumulated impairment for the marketable securities not measured at fair value.

Note 4: The number of shares of securities and their amounts pledged as security or pledged for loans and their restrictions on use under some agreements should be stated in the footnote if the securities presented herein have such conditions.

Table 3, Page 4

Securities held by Marketable securities
（Note 1）		 Relationship with the
securities issuer(Note 2)		 General
ledger account		 As ofSeptember30,2024 As ofSeptember30,2024 Footnote
（Note 4）
Number of shares
(in thousands)		 Book value
(Note3)		 Ownership (%) Fairvalue
ABOUND PROFITS LIMITED Domestic and foreign unlisted stocks
OWLINK TECHNOLOGY, INC.		 -
;		 Current financial assets at fair
value through profit or loss		 Note 5 33,866
$		 1.88% 33,866
$

Note 1: Marketable securities in the table refer to stocks, bonds, beneficiary certificates and other related derivative securities.

Note 2: Leave the column blank if the issuer of marketable securities is non-related party.

Note 3: Fill in the amount after adjusted at fair value and deducted by accumulated impairment for the marketable securities measured at fair value; fill in the acquisition cost or amortised cost deducted by accumulated impairment for the marketable securities not measured at fair value.

Note 4: The number of shares of securities and their amounts pledged as security or pledged for loans and their restrictions on use under some agreements should be stated in the footnote if the securities presented herein have such conditions. Note 5: As of September 30, 2024, the Company held 1,000 thousand Series B Stock shares of Owlink Technology, Inc., constituting 1.88% of shareholding ratio.

Table 3, Page 5

As of September 30, 2024 Marketable securities Relationship with the General Number of shares Book value Footnote Securities held by （Note 1） securities issuer (Note 2) ledger account (in thousands) (Note 3) Ownership (%) Fair value （Note 4） Amtran Electronic (Suzhou) Co., Ltd. Domestic and foreign unlisted stocks Beijing Hypersring Technologies, Inc Current financial assests at fair - value through other - comprehensive income $ 1,915 15.00% $ 1,915

  • Note 1: Marketable securities in the table refer to stocks, bonds, beneficiary certificates and other related derivative securities.

Note 2: Leave the column blank if the issuer of marketable securities is non-related party. Note 3: Fill in the amount after adjusted at fair value and deducted by accumulated impairment for the marketable securities measured at fair value; fill in the acquisition cost or amortised cost deducted by accumulated impairment for the marketable securities not measured at fair value.

Note 4: The number of shares of securities and their amounts pledged as security or pledged for loans and their restrictions on use under some agreements should be stated in the footnote if the securities presented herein have such conditions.

Table 3, Page 6

AMTRAN TECHNOLOGY CO., LTD. AND ITS SUBSIDIARIES

Acquisition or sale of the same security with the accumulated cost exceeding $300 million or 20% of the Company's paid-in capital

Nine months ended September 30, 2024

Table 4

Expressed in thousands of NTD (Except as otherwise indicated)

Investor Marketable
securities		 General
ledger
account		 Counterparty
(Note1)		 Relationship
withtheinvestor		 Balance as at January1,2024 Balance as at January1,2024 Addition (Note2) Disposal Disposal Balance a s at September30,2024 s at September30,2024
Number of
shares		 Amount Number of
shares		 Amount Number of
shares		 Selling price Bookvalue Gain (loss) on
disposal		 Number of
shares		 Amount Note
Amtran
Technology Co.,
Ltd.		 VIZIO Holding
Corp.		 Current
financial
assets at fair
value
through
profit or loss		 - None 5,006 $ 1,183,802 - - 5,006 $ 1,669,712 $ 1,183,802 $ 485,910 - $ - -

Note 1: Marketable securities in the table refer to stocks, bonds, beneficiary certificates and other related derivative securities. Note 2: Fill in the columns the counterparty and relationship if securities are accounted for under the equity method; otherwise leave the columns blank. Note 3: Aggregate purchases and sales amounts should be calculated separately at their market values to verify whether they individually reach NT$300 million or 20% of paid-in capital or more. Note 4: Paid-in capital referred to herein is the paid-in capital of parent company. In the case that shares were issued with no par value or a par value other than NT$10 per share, the 20% of paid-in capital shall be replaced by 10% of equity attributable to owners of the parent in the calculation.

Table 4, Page 1

Table 5

AMTRAN TECHNOLOGY CO., LTD. AND ITS SUBSIDIARIES

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

Nine months ended September 30, 2024

Expressed in thousands of NTD (Except as otherwise indicated)

Differences in transaction

Differences in transaction Differences in transaction
Purchaser/seller Counterparty Relationship with
the counterparty		 Transaction terms compared to
third party transactions
(Note1)		 Notes/accountsreceivable (payable) Footnote
(Note2)
Purchases
(sales)		 Amount Percentage of
total purchases
(sales)		 Credit term Unit price Credit term Balance Percentage
of total
notes/accounts
receivable
(payable)
Amtran Technology Co., Ltd.
Amtran Technology Co., Ltd.
Amtran Technology Co., Ltd.
Suzhou Raken Technology Ltd.
RICK TECHNOLOGY INC.
RICK TECHNOLOGY INC.
AMTRAN VIETNAM
TECHNOLOGY COMPANY
LIMITED
AMTRAN VIETNAM
TECHNOLOGY COMPANY
LIMITED
AMTRAN VIETNAM
TECHNOLOGY COMPANY
LIMITED		 Suzhou Raken Technology
Ltd.
AMTRAN VIDEO
CORPORATION
RICK TECHNOLOGY INC.
Amtran Technology Co., Ltd.
RARA INC.
AMTRAN VIETNAM
TECHNOLOGY COMPANY
LIMITED
Amtran Technology Co., Ltd.
RICK TECHNOLOGY INC.
Suzhou Raken Technology
Ltd.		 The Company’s
subsidiary
The Company’s
subsidiary
The Company’s
subsidiary
Ultimate parent
company
Other related party
Fellow subsidiary
Ultimate parent
company
Fellow subsidiary
Fellow subsidiary		 (Sales)
(Sales)
(Sales)
(Sales)
(Sales)
(Sales)
(Sales)
(Sales)
(Sales)		 659,808
$		 4%
1%
2%
60%
60%
22%
93%
2%
1%		 60 days after
monthly billings
60 days after
monthly billings
90 days after
monthly billings
75 days after
monthly billings
90 days after
monthly billings
45 days after
monthly billings
75 days after
monthly billings
90 days after
monthly billings
60 days after
monthly billings		 Sales price under
mutual agreement
Sales price under
mutual agreement
Sales price under
mutual agreement
Sales price under
mutual agreement
Sales price under
mutual agreement
Sales price under
mutual agreement
Sales price under
mutual agreement
Sales price under
mutual agreement
Sales price under
mutual agreement		 30~90 days after
monthly billing for
regular clients
30~90 days after
monthly billing for
regular clients
30~90 days after
monthly billing for
regular clients
30~90 days after
monthly billing for
regular clients
30~90 days after
monthly billing for
regular clients
30~90 days after
monthly billing for
regular clients
30~90 days after
monthly billing for
regular clients
30~90 days after
monthly billing for
regular clients
30~90 days after
monthly billing for
regular clients		 -
$		 0%
2%
2%
74%
83%
17%
92%
1%
2%
148,762
$		 96,734
$
262,249
$		 103,212
$
3,946,189
$		 2,380,180
$
293,992
$		 115,328
$
107,993
$		 23,342
$
10,983,909
$		 3,309,294
$
184,925
$		 37,790
$
174,276
$		 76,428
$

Note 1: If terms of related party transactions are different from third-party transactions, explain the differences and reasons in the ‘Unit price’ and ‘Credit term’ columns.

Note 2: In case related-party transaction terms involve advance receipts (prepayments) transactions, explain in the footnote the reasons, contractual provisions, related amounts, and differences in types of transactions compared to third-party transactions.

Note 3: Paid-in capital referred to herein is the paid-in capital of parent company. In the case that shares were issued with no par value or a par value other than NT$10 per share, the 20% of paid-in capital shall be replaced by 10% of equity attributable to owners of the parent in the calculation.

Note 4: The transactions between the Company and subsidiaries are disclosed from the aspect of asset and revenue and the corresponding transactions are not disclosed.

Table 5, Page 1

AMTRAN TECHNOLOGY CO., LTD. AND ITS SUBSIDIARIES

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

Nine months ended September 30, 2024

Table 6

Expressed in thousands of NTD (Except as otherwise indicated)

Creditor Counterparty Relationship
with the
counterparty		 Balance as at September
30,2024(Note 1)		 Turnover rate Overdue receivables Overdue receivables Amount collected
subsequent to the
balance sheet date		 Allowance for
doubtful accounts
Amount Action taken
AMTRAN VIETNAM TECHNOLOGY
COMPANY LIMITED.
Suzhou Raken Technology Ltd.
RICK TECHNOLOGY INC.
Amtran Technology Co., Ltd.		 Amtran Technology Co., Ltd.
Amtran Technology Co., Ltd.
RARA INC.
RICK TECHNOLOGY INC.		 Ultimate parent
company
Ultimate parent
company
Other related party
The Company’s
subsidiary		 $ 3,309,294
2,380,180
115,328
103,212		 5.16
2.96
2.94
2.93		 $ -
-
-
-		 $ -
-
-
-		 $ 854,550
586,083
27,580
24,083		 $ -
-
-
-

Note 1: Fill in separately the balances of accounts receivable–related parties, notes receivable–related parties, other receivables–related parties…etc.

Note 2: Paid-in capital referred to herein is the paid-in capital of parent company. In the case that shares were issued with no par value or a par value other than NT$10 per share, the 20 % of paid-in capital shall be replaced by 10% of equity attributable to owners of the parent in the calculation.

Table 6, Page 1

AMTRAN TECHNOLOGY CO., LTD. AND ITS SUBSIDIARIES

Table 7

Significant inter-company transactions during the reporting period

Nine months ended September 30, 2024

Expressed in thousands of NTD (Except as otherwise indicated)

Transaction (Note 5)

Number
(Note 1)		 Companyname Counterparty Relationship
(Note 2)		 General ledger account Amount Transaction terms Percentage of
consolidated total
operating revenues or total
assets(Note 3)
0
1
1
2
2		 Amtran Technology Co., Ltd.
Suzhou Raken Technology Ltd.
Suzhou Raken Technology Ltd.
AMTRAN VIETNAM TECHNOLOGY
COMPANY LIMITED
AMTRAN VIETNAM TECHNOLOGY
COMPANY LIMITED		 Suzhou Raken Technology Ltd.
Amtran Technology Co., Ltd.
Amtran Technology Co., Ltd.
Amtran Technology Co., Ltd.
Amtran Technology Co., Ltd.		 Parent company to
Subsidiary
Subsidiary to parent
company
Subsidiary to parent
company
Subsidiary to parent
company
Subsidiary to parent
company		 Sales
Sales
Accounts receivable
Sales
Accounts receivable		 659,808
$ 3,946,189
$ 2,380,180
10,983,909
3,309,294		 75 days after monthly billings
75 days after monthly billings
75 days after monthly billings
75 days after monthly billings
75 days after monthly billings		 4%
22%
10%
62%
14%

  • Note 1: The numbers filled in for the transaction company in respect of inter-company transactions are as follows:

  • (1) Parent company is ‘0’.

  • (2) The subsidiaries are numbered in order starting from ‘1’.

Note 2: Relationship between transaction company and counterparty is classified into the following three categories:

  • (1) Parent company to subsidiary.

  • (2) Subsidiary to parent company.

  • (3) Subsidiary to subsidiary.

Note 3: 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 4: The Company may decide to disclose or not to disclose transaction details in this table based on the materiality principle. Note 5: The individual transaction below NT$0.5 billion is not disclosed. Transactions are disclosed from the assets and revenue's side and are not disclosed from the opposite side.

Table 7, Page 1

Table 8

Expressed in thousands of NTD (Except as otherwise indicated)

AMTRAN TECHNOLOGY CO., LTD. AND ITS SUBSIDIARIES

Information on investees

Nine months ended September 30, 2024

Investor Investee
(Notes1and2)		 Location Main business
activities		 Initial investment amount Initial investment amount Sharesheld as at September30,2024 as at September30,2024 Net profit (loss) of
the investee for the
nine months ended
September 30, 2024
(Note2(2))		 Investment income
(loss) recognised by
the Company for the
nine months ended
September 30, 2024
(Note2(3))		 Footnote
Balance as at
September 30,
2024		 Balance as at
December 31,
2023		 Numberofshares Ownership
(%)		 Bookvalue
Amtran Technology Co.,
Ltd.
Amtran Technology Co.,
Ltd.
Amtran Technology Co.,
Ltd.
Amtran Technology Co.,
Ltd.
Amtran Technology Co.,
Ltd.
Amtran Technology Co.,
Ltd.
Amtran Technology Co.,
Ltd.
Amtran Technology Co.,
Ltd.
Amtran Technology Co.,
Ltd.
Amtran Technology Co.,
Ltd.
Amtran Technology Co.,
Ltd.		 ABOUND PROFITS LIMITED
REI MAU ENTERPRISE CO.,
LTD.
ASEV DISPLAY LABS
RICK TECHNOLOGY INC.
AMTRAN
LOGISTICS, INC.
AMTRAN VIDEO
CORPORATION
SPYGLASS TESLA, LLC.
AMTRAN VIETNAM
TECHNOLOGY COMPANY
LIMITED
AMTRAN VIETNAM
TRADING COMPANY
LIMITED
HEROIC FAITH MEDICAL
SCIENCE CO., LTD
HUA JUNG COMPONENTS
CO., LTD.		 British Virgin
Islands
Taiwan
U.S.A
Taiwan
U.S.A
U.S.A
U.S.A
Vietnam
Vietnam
Cayman Islands
Taiwan		 General
investment
business
General
investment
business
Sales of computer
software and
hardware, after-
sales services
Merchandising
Business
Sales of LCD TVs
and logistic
services
Sales of LCD TVs
and logistic
services
General
investment
business
Manufacturing
and sales of LCDs
Merchandising
Business
General
investment
business
Manufacture of
electronic
components		 847,755
$ 299,980
67,189
88,573
32,814
28,560
57,437
2,387,954
30,074
54,262
497,099		 847,755
$ 299,980
67,189
88,573
32,814
28,560
57,437
2,387,954
30,074
54,262
497,099		 24,800,000
29,998,000
2,000,000
16,400,000
1,000,000
1,000,000
1,750,000
-
-
3,333,333
54,575,709		 100.00%
100.00%
100.00%
82.00%
100.00%
100.00%
43.75%
100.00%
100.00%
18.73%
31.60%		 1,759,732
$ 356,712
111,259
233,352
461,650
27,305
84,788
2,945,848
37,120
13,122
481,604		 89,980)
($ 48,884
1,943
10,196
9,914
8,533)
(
22,133
392,256
3,557
34,321)
(
23,840		 89,980)
($ 48,884
1,943
8,361
9,914
9,683
8,533)
(
392,256
3,557
-
7,386		 Note 3

Table 8, Page 1

Investor Investee
(Notes1and2)		 Location Main business
activities		 Initial investment amount Initial investment amount Sharesheld as at September30,2024 as at September30,2024 Net profit (loss) of
the investee for the
nine months ended
September 30, 2024
(Note2(2))		 Investment income
(loss) recognised by
the Company for the
nine months ended
September 30, 2024
(Note2(3))		 Footnote
Balance as at
September 30,
2024		 Balance as at
December 31,
2023		 Numberofshares Ownership
(%)		 Bookvalue
Amtran Technology Co.,
Ltd.
REI MAU ENTERPRISE
CO., LTD.
REI MAU ENTERPRISE
CO., LTD.
REI MAU Capital Inc.
RICK TECHNOLOGY INC		 BMA VENTURE CAPITAL
INVESTMENT
CORPORATION
REI MAU Capital Inc
CDIB-Mac Limited Partnership
CDIB-Mac Limited Partnership
Rick Service Inc.		 Taiwan
Taiwan
Taiwan
Taiwan
Taiwan		 Venture capital
business
Venture capital
business
Venture capital
business
Venture capital
business
Logistic services		 58,963
$ 6,000
116,483
2,900
15,074		 64,795
$ 6,000
116,483
2,900
15,074		 5,896,318
600,000
-
-
3,000,000		 24.14%
100.00%
40.17%
1.00%
100.00%		 40,278
$ 7,940
108,198
2,693
28,930		 25,117)
($ 1,759
1,805
1,805
7,509)
(		 6,063)
($ 1,759
725
18
7,509)
(

Note 1: If a public company is equipped with an overseas holding company and takes consolidated financial report as the main financial report according to the local law rules, it can only disclose the information of the overseas holding company about the disclosure of related overseas investee information.

Note 2: If situation does not belong to Note 1, fill in the columns according to the following regulations:

  • (1) The columns of ‘Investee’, ‘Location’, ‘Main business activities’, Initial investment amount’ and ‘Shares held as at September 30, 2024’ should fill orderly in the Company’s (public company’s) information on investees and every directly or indirectly controlled investee’s investment information, and note the relationship between the Company (public company) and its investee each (ex. direct subsidiary or indirect subsidiary) in the ‘footnote’ column..

  • (2) The ‘Net profit (loss) of the investee for the nine months ended September 30, 2024’ column should fill in amount of net profit (loss) of the investee for this period.

  • (3) The ‘Investment income (loss) recognised by the Company for the nine months ended September 30, 2024’ column should fill in the Company (public company) recognised investment income (loss) of its direct subsidiary and

recognised investment income (loss) of its investee accounted for under the equity method for this period. When filling in recognised investment income (loss) of its direct subsidiary, the Company (public company) should confirm that direct subsidiary’s net profit (loss) for this period has included its investment income (loss) which shall be recognised by regulations.

Note 3: The Company held 3,333 thousand preference shares of Heroic Faith Medical Science Co., Ltd.

Table 8, Page 2

AMTRAN TECHNOLOGY CO., LTD.

Information on investments in Mainland China Nine months ended September 30, 2024

Table 9

Expressed in thousands of NTD (Except as otherwise indicated)

Investee in Mainland
China		 Main business
activities		 Paid-incapital Investmentmethod Accumulated
amount of
remittance from
Taiwan to
Mainland China
as of January 1,
2024		 Amount remitted from
Taiwan to Mainland
China/Amount remitted
back to Taiwan for the
nine months ended
September30,2024		 Amount remitted from
Taiwan to Mainland
China/Amount remitted
back to Taiwan for the
nine months ended
September30,2024		 Accumulated
amount of
remittance from
Taiwan to
Mainland China
as of September
30,2024		 Net income of
investee for the
nine months
ended
September 30,
2024		 Ownership
held by the
Company
(direct or
indirect)		 Investment income
(loss) recognised
by the Company
for the nine
months ended
September 30,
2024		 Book value of
investments in
Mainland China
as of September
30,2024		 Accumulated
amount of
investment
income remitted
back to Taiwan as
of September 30,
2024		 Footnote
Remitted to
Mainland
China		 Remitted
back to
Taiwan
Amtran Electronic
(Suzhou) Co., Ltd.
Suzhou Raken
Technology Ltd.
Suzhou Raken
Technology Ltd.
Companyname		 R&D, manufacturing
and repair service of
LCDs
R&D, manufacturing
and repair service of
LCDs
R&D, manufacturing
and repair service of
LCDs
Accumulated amount
of remittance from
Taiwan to Mainland
China
as of September 30,
2024		 1,196,370
$ 2,877,447
2,877,447
Investment amount
approved by the
Investment
Commission of the
Ministry of
Economic Affairs
(MOEA)		 1
1
3
Ceiling on
investments in
Mainland China
imposed by the
Investment
Commission of
MOEA		 626,670
$ -
1,091,953		 $ -
-
-		 $ -
-
-		 626,670
$ -
1,091,953		 60,222)
($ 111,689)
(
111,689)
(		 100.00
62.05
37.95		 60,222)
($ 69,303)
(
42,384)
(		 1,634,486
$ 1,569,030
1,082,857		 1,171,421
$ 595,508
534,305
Amtran Technology
Co., Ltd.		 $ 1,718,623 $ 2,772,572 $ 8,112,511

Note 1: (1) The investee companies was invested through a company founded in the third territory, of which Amtran Electronic(Suzhou) Co., Ltd. and Suzhou Raken Technology Ltd. were invested by Abound Profits Limited and Amtran Electronic (Suzhou) Co., Ltd., respectively.

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

(3) Others (directly invested in the company in Mainland China)

Note 2: The recognition in relation to Amtran Electronic (Suzhou) Co., Ltd. and Suzhou Raken Technology Ltd. was based on the Taiwanese parent company's financial statements which were audited by independent auditors. Note 3: USD ： NTD=1:31.65

Table 9, Page 1

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