AVC - Annual Report 2023 | FinancialReports.eu

ASIA VITAL COMPONENTS CO. , LTD

PARENT COMPANY ONLY

FINANCIAL STATEMENTS

WITH REPORT OF INDEPENDENT ACCOUNTANTS

FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022

Address: No.248-27, Xinsheng Rd., Qianzhen Dist., Kaohsiung City 806, Taiwan (R.O.C.) Telephone: 886-7-815-7612

The reader is advised that these parent company only financial statements have been prepared originally in Chinese. In the event of a conflict between these financial statements and the original Chinese version or difference in interpretation between the two versions, the Chinese financial statements shall prevail.

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Independent Auditors’ Report

To ASIA VITAL COMPONENTS CO., LTD

Opinion

We have audited the accompanying parent company only balance sheets of ASIA VITAL COMPONENTS CO., LTD (the “Company”) as of December 31, 2023 and 2022, and the related parent company only statements of comprehensive income, changes in equity and cash flows for the years ended December 31, 2023 and 2022, and notes to the parent company only financial statements, including the summary of significant accounting policies (together “the parent company only financial statements”).

In our opinion, based on our audits and the reports of other auditors (please refer to the Other Matter – Making Reference to the Audits of Component Auditors section of our report), the parent company only financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2023 and 2022, and its financial performance and cash flows for the years ended December 31, 2023 and 2022, in conformity with the requirements of the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and auditing standards generally accepted in the Republic of China. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Parent Company only Financial Statements section of our report. We are independent of the Company in accordance with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China (the “Norm”), and we have fulfilled our other ethical responsibilities in accordance with the Norm. Based on our audits and the reports of other auditors, we believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were most significant in our audit of 2023 parent company only financial statements. These matters were addressed in the context of our audit of the parent company only financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

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Assessment of revenue recognition for hub-warehouse The Company recognized NT$42,973,997 thousand as net sales for the year ended December 31, 2023, and source of revenue comes from the sale of goods. According to the partial sales contract of the Company, the Company prepare the stock in the hub-warehouse based on the customer's demand. The Company recognizes revenue upon the goods are picked up from the hub-warehouses and accepted by the customers if picked up. Since the revenue recognition of sales from hub-warehouse should determine the performance obligation and the timing of revenue recognition, we consider this is a key audit matter.
Our audit procedures included, but are not limited to, understanding and testing the effectiveness of the internal controls around sales revenue, include periodic reconciliation; performing test of details on the revenue from hub-warehouse and verifying the reconciliation data between the Company and customers in order to assure the occurrence of sales revenue; performing cutoff tests on the revenue from hub-warehouse for a specific period before and after the end of the financial reporting period, includes verifying documentation from hub-warehouse custodians to assess the appropriateness of revenue cutoff; confirming the inventory quantities with materiality hub-warehouse custodian to ensure the movements and remaining quantities of inventories in the hub-warehouses.

In addition, we evaluated the adequacy of disclosures of sales. Please refer to Note 4 and 6 to the parent company only financial statements.

Valuation for slow-moving inventories As of December 31, 2023, the Company’s net inventories amounted to NT$12,079,831 thousand, constituting 25% of parent company total assets which is significant for the financial statements. The allowance for reduction of obsolete inventory due to the uncertainty caused by the rapid change of product technology, is closely related to the management’s judgement. Therefore, we considered this a key audit matter.

Our audit procedures included, but are not limited to, understanding and testing the effectiveness of the internal controls over the Company’s slow-moving inventories reserve process; evaluating the appropriateness of the reserve policies for slow-moving inventories; sample-testing the accuracy of inventory aging, analyzing changes in inventory aging, considering anticipated demand and write-off activities, and recalculating inventory reserve; assessing inventory status by observing the inventory counting process.

In addition, we evaluated the adequacy of disclosures of sales. Please refer to Note 4, 5 and 6 to the parent company only financial statements.

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Other Matter – Making Reference to the Audits of Component Auditors

We did not audit the financial statements of certain subsidiaries and associates accounted for under the equity method. Those financial statements were audited by other auditors, whose reports thereon have been furnished to us, and our opinions expressed herein are based solely on the reports of other auditors. These subsidiaries and associates under equity method amounted to NT$508,076 thousand and NT$439,661 thousand, representing 1.04% and 1.02% of total assets as of December 31, 2023 and 2022, respectively. The related shares of profits (loss) from the subsidiaries and associates under the equity method amounted to NT$83,696 thousand and NT$86,341 thousand, representing 1.27% and 1.78% of the income before tax for the years ended December 31, 2023 and 2022, respectively, and the related shares of other comprehensive income (loss) from the subsidiaries and associates under the equity method amounted to (NT$1,200) thousand and (NT$20) thousand, representing 0.36% and (0.01%) of the comprehensive income (loss) for the years ended December 31, 2023 and 2022, respectively.

Responsibilities of Management and Those Charged with Governance for Parent Company only Financial Statements

Management is responsible for the preparation and fair presentation of the parent company only financial statements in accordance with the requirements of the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Financial Reporting Standards, International Accounting Standards, Interpretations developed by the International Financial Reporting Interpretations Committee or the former Standing Interpretation Committee as endorsed and as management determines is necessary to enable the preparation of parent company only financial statements that are free from material misstatement, whether due to fraud or error.

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

Those charged with governance, including audit committee, are responsible for overseeing the financial reporting process of the Company.

Auditor’s Responsibilities for the Audit of the Parent Company only Financial Statements

Our objectives are to obtain reasonable assurance about whether the parent company only financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with auditing standards generally accepted in the Republic of China will always detect a material misstatement when it exists.

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Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these parent company only financial statements.

As part of an audit in accordance with auditing standards generally accepted in the Republic of China, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the parent company only financial statements, whether due to fraud or error, and we design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or an override of internal controls.
Obtain an understanding of internal controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control of the Company.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability to continue as a going concern of the Company. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the parent company only financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the parent company only financial statements, including the accompanying notes, and whether the parent company only financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the parent company only financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

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

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of 2023 parent company only financial statements and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Ernst & Young, Taiwan

Republic of China March 13, 2024

Notice to Readers

The accompanying parent company only financial statements are intended only to present the financial position, results of operations and cash flows in accordance with accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to review such parent company only financial statements are those generally accepted and applied in the Republic of China.

Accordingly, the accompanying parent company only financial statements and report of independent accountants 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, Ernst & Young cannot accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.

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English translation of Parent Company Only Financial Statements Originally issued in Chinese ASIA VITAL COMPONENTS CO., LTD

PARENT COMPANY ONLY BALANCE SHEETS December 31, 2023 and 2022 (Expressed in thousands of New Taiwan Dollars)

Assets	Notes	December 31, 2023	December 31, 2023	December 31, 2022	December 31, 2022	Liabilities and Equity	Notes	December 31, 2	023	December 31, 2022
		Amount	％	Amount	％			Amount	％	Amount ％
Current assets Cash and cash equivalents Financial assets measured at amortized costs, current Notes receivable, net Accounts receivable, net Accounts receivable-related parties, net Other receivables Other receivables-related parties Inventories, net Prepayments Other current assets Total current assets Non-current assets Financial assets at fair value through other comprehensive income, noncurrent Investments accounted for using the equity method Property, plant and equipment Right-of-use assets Investment property,net Intangible assets Deferred tax assets Other non-current assets Net defined benefit assets, noncurrent Total non-current assets Total assets	6(1) 6(2), 8 4, 6(3) 4, 6(4) 4, 6(4), 7 6(4).(5) 6(5) 6(6) 6(7) 4,6(8) 4, 6(9), 8 4, 6(22) 4, 6(10), 8 4, 6(11) 4, 6(26) 6(12), 8 4, 6(18)	$10,893,391 1,600,297 － 1,730,943 86,684 559,378 19,389 12,079,831 15,551 26,258	22 3 － 4 0 1 0 25 0 0	$8,049,726 1,246,834 1,192 1,240,056 126,935 246,961 53,534 11,712,371 20,972 4,796	19 3 0 3 0 1 0 27 0 0	Current liabilities Short-term loans Notes payable Accounts payable Accounts payable-related parties, net Other payables Other payables-related parties, net Current tax liabilities Lease liabilities-Current Other current liabilities Current portion of long-term loans Total current liabilities Non-current liabilities Corporate bonds payable Long-term loans Deferred tax liabilities Lease liabilities-Non current Guarantee deposits Total non-current liabilities Total liabilities Equity attributable to the parent company Capital Common stock Additional paid-in capital Retained earnings Legal reserve Special reserve Undistributed earnings Total retained earnings Other components of equity Total equity Total liabilities and equity	6(13) 7 6(14) 4, 6(26) 4, 6(22) 6(15) 6(17) 6(16) 6(17) 4, 6(27) 4, 6(22) 6(19) 6(19) 6(19)	$2,186,205 22,213 608,873 10,765,016 2,765,903 3,128 1,324,392 12,563 1,938,034 646,251	4 0 1 22 6 0 3 0 4 2	$3,190,000 7 35,860 0 484,594 1 8,129,728 19 1,790,499 4 52,217 0 976,950 2 13,602 0 3,886,217 9 1,367,001 4 19,926,668 46 2,400,000 6 3,627,082 8 1,510,685 4 29,433 0 866 0 7,568,066 18 27,494,734 64 3,533,101 8 1,006,639 2 1,351,070 3 1,445,059 3 9,280,252 22 12,076,381 28 (1,119,685) (2) 15,496,436 36 $42,991,170 100
		$27,011,722	55	22,703,377	53			20,272,578	42
		61,881 20,115,969 422,519 55,390 22,792 38,989 1,053,980 16,686 17,715	0 42 1 0 0 0 2 0 0	32,536 18,560,943 506,741 41,906 30,977 34,159 1,033,111 25,604 21,816	0 43 1 0 0 0 3 0 0			2,400,000 2,521,248 1,566,726 25,988 1,426	5 5 3 0 0
								6,515,388	13
								26,787,966	55
								3,833,101 3,866,691 1,768,785 1,119,685 12,892,929	8 8 4 2 26
		21,805,921	45	20,287,793	47

								15,781,399	32
								(1,451,514)	(3)
								22,029,677	45

		$48,817,643	100	$42,991,170	100			$48,817,643	100

(The accompanying notes are an integral part of the parent company only financial statements.)

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English translation of Parent Company Only Financial Statements originally issued in Chinese ASIA VITAL COMPONENTS CO., LTD

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME

For the years ended December 31, 2023 and 2022

(Expressed in thousands of New Taiwan Dollars, except for earnings par share)

Items	Notes	2023		2022
		Amount	`％`	Amount	`％`
Operating Revenue Operating costs Gross profit Unrealized gross (profit) Realized gross profit Gross profit, net Operating expenses Sales and marketing expenses General and administrative expenses Research and development expenses Expected credit impairment losses Subtotal Operating income Non-operating income and expenses Interest income Other income Other gains and losses Finance costs Share of profit or loss of subsidiaries and associates Subtotal Income from continuing operations before income tax Income tax expense Net income Other comprehensive income (loss) Items that will not be reclassified subsequently to profit or loss: Remeasurements of defined benefit pension plans Unrealized gains (losses) from equity instruments investments measured Income tax related to items that will not be reclassified Items that may be reclassified subsequently to profit or loss: Exchange differences on translation of foreign operations Share of other comprehensive income (loss) of associates Income tax related to items that may be reclassified subsequently Total other comprehensive loss, net of tax Total comprehensive income Earnings per share (NTD) Earnings per share-basic Earnings per share-diluted	4,6(21), 7 6(24), 7 6(23).(24) 6(24) 6(24) 6(24) 6(24) 4,6(8) 6(26) 6(25) 6(27)	$42,973,997 (36,444,271)	100 (85)	$39,019,702 (33,584,077)	100 (86)
		6,529,726	15	5,435,625	14
		(1,123) 3,934	(0) 0	(3,934) 29	(0) 0
		6,532,537	15	5,431,720	14
		(444,114) (530,549) (1,088,542) (35,916)	(1) (1) (3) (0)	(364,262) (400,313) (918,204) (17,227)	(1) (1) (2) (0)
		(2,099,121)	(5)	(1,700,006)	(4)
		4,433,416	10	3,731,714	10
		295,363 351,494 66,140 (133,370) 1,601,634	1 1 0 (0) 3	33,322 278,572 (305,114) (132,212) 1,235,490	0 1 (1) (0) 3
		2,181,261	5	1,110,058	3
		6,614,677 (1,309,964)	15 (3)	4,841,772 (679,511)	13 (2)
		5,304,713	12	4,162,261	11
		(6,080) 68 1,215 (396,515) (1,200) 67,945	(0) 0 0 (1) (0) 0	18,612 1,178 (3,722) 410,744 (20) (86,528)	0 0 (0) 1 (0) (0)
		(334,567)	(1)	340,264	1
		$4,970,146	11	$4,502,525	12
		$14.11		$11.78
		$13.71		$11.67

(The accompanying notes are an integral part of the parent company only financial statements.)

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English translation of Parent Company Only Financial Statements originally issued in Chinese ASIA VITAL COMPONENTS CO. , LTD PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY For the years ended December 31, 2023 and 2022 (Expressed in thousands of New Taiwan Dollars)

Items	Capital	Additional Paid-in Capital		Retained Earnings		Other Compon	ents of Equity	Total Equity
	Common Stock		Legal Reserve	Special Reserve	Unappropriated Earnings	Exchange Differences on Translation of Foreign Operations	Unrealized Gains (Losses) From Equity Instruments Investments Measured At Fair Value Through Other Comprehensive Income
Balance as of January 1, 2022 Appropriation and distribution of 2021 retained earnings Legal reserve Special reserve Cash dividends Donation from shareholders Cash dividends distributed from capital surplus Net income for the year ended December 31, 2022 Other comprehensive income (loss), net of tax for the year ended December 31, 2022 Total comprehensive income (loss) Share-based payment transaction Balance as of December 31, 2022 Balance as of January 1, 2023 Appropriation and distribution of 2022 retained earnings Legal reserve Cash dividends Special reserve reversed Donation from shareholders Cash dividends distributed from capital surplus Net income for the year ended December 31, 2023 Other comprehensive income (loss), net of tax for the year ended December 31, 2023 Total comprehensive income (loss) Issue of shares Difference between consideration and carrying amount of subsidiaries acquired or disposed Changes in ownership interests in subsidiaries Share-based payment transaction Disposal of equity investments at fair value through other comprehensive income Balance as of December 31, 2023	$3,533,101 － $3,533,101 $3,533,101 － 300,000 $3,833,101	$1,260,103 238 (353,310)	$1,057,847 293,223	$1,326,487 118,572	$6,680,820 (293,223) (118,572) (1,165,924) 4,162,261 14,890	($1,120,959) 324,196	($324,100) 1,178	$12,413,299 －－ (1,165,924) 238 (353,310) 4,162,261 340,264
		－	－	－	4,177,151	324,196	1,178	4,502,525
		99,608						99,608
		$1,006,639	$1,351,070	$1,445,059	$9,280,252	($796,763)	($322,922)	$15,496,436
		$1,006,639 251 (317,979)	$1,351,070 417,715	$1,445,059 (325,374)	$9,280,252 (417,715) (1,596,962) 325,374 5,304,713 (4,865)	($796,763) (329,770)	($322,922) 68	$15,496,436 － (1,596,962) － 251 (317,979) 5,304,713 (334,567)
		－	－	－	5,299,848	(329,770)	68	4,970,146
		2,550,000 10,849 253,379 363,552			2,132	5	(2,132)	2,850,000 10,854 253,379 363,552 -
		$3,866,691	$1,768,785	$1,119,685	$12,892,929	($1,126,528)	($324,986)	$22,029,677

(The accompanying notes are an integral part of the parent company only financial statements.)

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English translation of Parent Company Only Financial Statements originally issued in Chinese ASIA VITAL COMPONENTS CO., LTD

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

For the years ended December 31, 2023 and 2022

(Expressed in thousands of New Taiwan Dollars)

Items		2023		2022
Cash flows from operating activities: Net income before tax Adjustments to reconcile net income before tax to net cash provided by operating activities: Income and expanse adjustments : Depreciation Amortization Amortization of royalty Expected credit losses Interest expense Interest income Dividend income Compensation costs of share-based payment transaction Share of profit of subsidiaries and associates (Gain) on disposal of property, plant and equipment Unrealized gross profit Realized (profit) Others Changes in operating assets and liabilities: Notes receivable Accounts receivable Accounts receivable-related parties Other receivables Other receivables-related parties Inventories Prepayments Other current assets Other operation assets Notes payable Accounts payable Accounts payable-related parties Other payables Other payables-related parties Other current liabilities Net defined benefit liabilities Cash generated from operations Interest received Interest paid Income tax paid Net cash provided by operating activities Cash flows from investing activities: Acquisition of financial assets at fair value through other comprehensive income Proceeds from disposal of financial assets at fair value through other comprehensive income Acquisition of investments accounted for using the equity method Proceeds from disposal of investments accounted for using the equity method Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Decrease (Increase) in refundable deposits Acquisition of intangible assets Decrease in noncurrent assets-others Dividends received Net cash provided by (used) in investing activities Cash flows from financing activities: Increase in short-term loans (Decrease) in short-term loans (Decrease) Increase in short-term notes and bills payable Proceeds from long-term loans Repayments of long-term loans Increase in guarantee deposits Repayment of lease liabilities Cash dividends Proceeds from issuing shares Net cash (used) in provided by financing activities Net increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year		$6,614,677 80,618 33,561 876 35,916 133,370 (295,363) (2,070) 242,076 (1,601,634) (16,023) 1,124 (3,933) (45,478) 1,455 (828,857) 40,251 12,510 34,145 (321,982) 5,421 (21,462) (353,463) (13,647) 124,280 2,635,288 982,987 (49,089) (1,948,183) (1,979) 5,475,392 272,477 (140,954) (858,190) 4,748,725 (30,000) 3,390 (50,000) 13,958 (51,032) 89,716 8,769 (43,759) 4,640 72,857 18,539 6,134,940 (7,138,735) － 3,270,000 (5,096,584) 560 (28,839) (1,914,941) 2,850,000 (1,923,599) 2,843,665 8,049,726 $10,893,391		$4,841,772 110,650 22,729 876 17,227 132,212 (33,322) － 59,836 (1,235,490) (14,937) 3,933 (29) (78,060) (966) 1,357,566 (31,774) (61,775) 528,642 (4,207,079) 40,808 2,685 (827,426) (1,150) (196,955) (132,116) 618,390 27,518 2,679,895 (1,557) 3,622,103 32,561 (125,410) (500,984) 3,028,270 (14,810) － (989,800) － (71,672) 46,658 (2,238) (8,227) 23,617 97,416 (919,056) 15,611,165 (14,321,165) (250,000) 6,390,000 (4,727,028) － (10,167) (1,519,234) － 1,173,571 3,282,785 4,766,941 $8,049,726

(The accompanying notes are an integral part of the parent company only financial statements.)

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English Translation of Financial Statements Originally Issued in Chinese ASIA VITAL COMPONENTS CO., LTD

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS FOR THE YEARS ENDED 31 December 2023 AND 2022

(Expressed in thousands of New Taiwan Dollars unless otherwise specified)

1. History and organization

ASIA VITAL COMPONENTS CO., LTD. (the Company) was incorporated on December 17, 1991. The Company’s registered address is No.248-27, Xinsheng Rd., Qianzhen Dist., Kaohsiung City. The principal activities of the Company are to manufacture, process, assemble and to import and export electronic parts, electronic materials, communication electronic machinery products, automobile parts, lighting device, computer peripherals.

The Company’s ordinary shares were publicly listed on the Taiwan Stock Exchange (TWSE) on September 27, 2002.

2. Date and procedures of authorization of financial statements for issue

The parent company only financial statements of the Company for the years ended December 31, 2023 and 2022 were authorized for issue by the Board of Directors on Mar 13, 2024.

3. NEWLY ISSUED OR REVISED STANDARDS AND INTERPRETATIONS

(1) Changes in accounting policies resulting from applying for the first time certain standards and amendments.

The Company adopted International Financial Reporting Standards, International Accounting Standards, and Interpretations issued, revised or amended which are recognized by Financial Supervisory Commission (“FSC”) and become effective for annual periods beginning on or after January 1, 2023. The adoption of these new standards and amendments had no material impact on the Company.

(2) Standards or interpretations issued, revised or amended, by International Accounting Standards Board (“IASB”) which are endorsed by FSC, and not yet adopted by the Company as at the end of the reporting period are listed below.

Items	New, Revised or Amended Standards and Interpretations	Effective Date issued byIASB
a	Classification of Liabilities as Current or Non-current – Amendments to IAS 1	1 January 2024
b	Lease Liability in a Sale and Leaseback – Amendments to IFRS 16	1 January 2024
c	Non-current Liabilities with Covenants – Amendments to IAS 1	1 January 2024
d	Supplier Finance Arrangements – Amendments to IAS 7 and IFRS 7	1 January 2024

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(A) Classification of Liabilities as Current or Non-current – Amendments to IAS 1

These are the amendments to paragraphs 69-76 of IAS 1 Presentation of Financial statements and the amended paragraphs related to the classification of liabilities as current or non-current.

(B) Lease Liability in a Sale and Leaseback – Amendments to IFRS 16

The amendments add seller-lessees additional requirements for the sale and leaseback transactions in IFRS 16, thereby supporting the consistent application of the standard.

The amendments improved the information companies provide about long-term debt with covenants. The amendments specify that covenants to be complied within twelve months after the reporting period do not affect the classification of debt as current or non-current at the end of the reporting period.

(D) Supplier Finance Arrangements – Amendments to IAS 7 and IFRS 7

The amendments introduced additional information of supplier finance arrangements and added disclosure requirements for such arrangements.

The abovementioned standards and interpretations were issued by IASB and endorsed by FSC so that they are applicable for annual periods beginning on or after 1 January 2024. The Company is continuously assessing the possible impact that the application of above standards and interpretations will have on the Company’s financial position and financial performance and will disclose the relevant impact when the assessment is completed.

(3) Standards or interpretations issued, revised or amended, by International Accounting Standards Board (“IASB”) which are not endorsed by FSC, but not yet adopted by the Company as at the end of the reporting period are listed below:

Items	New, Revised or Amended Standards and Interpretations	Effective Date issued by IASB
a	IFRS 10 “Consolidated Financial Statements” and IAS 28 “Investments in Associates and Joint Ventures” — Sale or Contribution of Assets between an Investor and its Associate or Joint Ventures	To be determined by IASB
b	IFRS 17 “Insurance Contracts”	1 January2023
c	Lack of Exchangeability– Amendments to IAS 21	1 January2025

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A. IFRS 10“Consolidated Financial Statements” and IAS 28“Investments in Associates and Joint Ventures” — Sale or Contribution of Assets between an Investor and its Associate or Joint Ventures

The amendments address the inconsistency between the requirements in IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures , in dealing with the loss of control of a subsidiary that is contributed to an associate or a joint venture. IAS 28 restricts gains and losses arising from contributions of non-monetary assets to an associate or a joint venture to the extent of the interest attributable to the other equity holders in the associate or joint ventures. IFRS 10 requires full profit or loss recognition on the loss of control of the subsidiary. IAS 28 was amended so that the gain or loss resulting from the sale or contribution of assets that constitute a business as defined in IFRS 3 between an investor and its associate or joint venture is recognized in full.

IFRS 10 was also amended so that the gains or loss resulting from the sale or contribution of a subsidiary that does not constitute a business as defined in IFRS 3 between an investor and its associate or joint venture is recognized only to the extent of the unrelated investors’ interests in the associate or joint venture.

B. IFRS 17 “Insurance Contracts”

IFRS 17 provides a comprehensive model for insurance contracts, covering all relevant accounting aspects (including recognition, measurement, presentation and disclosure requirements). The core of IFRS 17 is the General (building block) Model, under this model, on initial recognition, an entity shall measure a Company of insurance contracts at the total of the fulfilment cash flows and the contractual service margin. The carrying amount of a Company of insurance contracts at the end of each reporting period shall be the sum of the liability for remaining coverage and the liability for incurred claims.

Other than the General Model, the standard also provides a specific adaptation for contracts with direct participation features (the Variable Fee Approach) and a simplified approach (Premium Allocation Approach) mainly for short-duration contracts.

IFRS 17 was issued in May 2017 and it was amended in 2020 and 2021. The amendments include deferral of the date of initial application of IFRS 17 by two years to annual beginning on or after 1 January 2023 (from the original effective date of 1 January 2021); provide additional transition reliefs; simplify some requirements to reduce the costs of applying IFRS 17 and revise some requirements to make the results easier to explain. IFRS 17 replaces an interim Standard – IFRS 4 Insurance Contracts – from annual reporting periods beginning on or after 1 January 2023.

C. Lack of Exchangeability – Amendments to IAS 21

These amendments specify whether a currency is exchangeable into another currency and, when it is not, to determining the exchange rate to use and the disclosures to provide. The amendments apply for annual reporting periods beginning on or after 1 January 2025.

The abovementioned standards and interpretations issued by IASB have not yet endorsed by FSC at the date when the Company’s financial statements were authorized for issue, the local effective dates are to be determined by FSC. As the Company is still currently determining the potential impact of the standards and interpretations listed under(A), it is not practicable to estimate their impact on the Company at this point in time. The remaining new or amended standards and interpretations have no material impact on the Company.

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Summary of significant accounting policies
(1) Statement of compliance

The parent company only financial statements of the Company for the years ended 31 December 2023 and 2022 have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers (“the Regulations”) and International Financial Reporting Standards, International Accounting Standards, International Financial Reporting Interpretations Committee and Standing Interpretations Committee as endorsed by the FSC.

(2) Basis of preparation

According to article 21 of the Regulations, the profit or loss and other comprehensive income presented in the parent company only financial reports will be the same as the allocations of profit or loss and of other comprehensive income attributable to owners of the parent presented in the financial reports prepared on a consolidated basis, and the owner’s equity presented in the parent company only financial reports will be same as the equity attributable to owners of the parent presented in the financial reports prepared on a consolidated basis. Therefore, the investments in subsidiaries will be disclosed under “Investments accounted for using the equity methods” in the parent company only financial report and change in value will be adjusted.

The parent company only financial statements have been prepared on a historical cost basis, except for financial instruments that have been measured at fair value. The parent company only financial statements are expressed in thousands of New Taiwan Dollars (“NT$”) unless otherwise stated.

(3) Foreign currency transactions

The Company’s parent company only financial statements are presented in NT$, which is also the Company’s functional currency.

Transactions in foreign currencies are initially recorded by the Company entities at their respective functional currency rates prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the functional currency closing rate of exchange ruling at the reporting date. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. Non-monetary items that are measured at historical cost in a foreign currency are translated using the exchange rates as at the dates of the initial transactions.

All exchange differences arising on the settlement of monetary items or on translating monetary items are taken to profit or loss in the period in which they arise except for the following:

A. Exchange differences arising from foreign currency borrowings for an acquisition of a qualifying asset to the extent that they are regarded as an adjustment to interest costs are included in the borrowing costs that are eligible for capitalization.
B. Foreign currency items within the scope of IFRS 9 Financial Instruments are accounted for based on the accounting policy for financial instruments.

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C. Exchange differences arising on a monetary item that forms part of a reporting entity’s net investment in a foreign operation is recognized initially in other comprehensive income and reclassified from equity to profit or loss on disposal of the net investment.

When a gain or loss on a non-monetary item is recognized in other comprehensive income, any exchange component of that gain or loss is recognized in other comprehensive income. When a gain or loss on a non-monetary item is recognized in profit or loss, any exchange component of that gain or loss is recognized in profit or loss.

(4) Translation of financial statements in foreign currency

The assets and liabilities of foreign operations are translated into NT$ at the closing rate of exchange prevailing at the reporting date and their income and expenses are translated at an average rate for the period. The exchange differences arising on the translation are recognized in other comprehensive income. On the disposal of a foreign operation, the cumulative amount of the exchange differences relating to that foreign operation, recognized in other comprehensive income and accumulated in the separate component of equity, is reclassified from equity to profit or loss when the gain or loss on disposal is recognized. The following partial disposals are accounted for as disposals:

(a) when the partial disposal involves the loss of control of a subsidiary that includes a foreign operation; and
(b) when the retained interest after the partial disposal of an interest in a joint arrangement or a partial disposal of an interest in an associate that includes a foreign operation is a financial asset that includes a foreign operation.

On the partial disposal of a subsidiary that includes a foreign operation that does not result in a loss of control, the proportionate share of the cumulative amount of the exchange differences recognized in other comprehensive income is re-attributed to the non-controlling interests in that foreign operation. In partial disposal of an associate or joint arrangement that includes a foreign operation that does not result in a loss of significant influence or joint control, only the proportionate share of the cumulative amount of the exchange differences recognized in other comprehensive income is reclassified to profit or loss.

Any goodwill and any fair value adjustments to the carrying amounts of assets and liabilities arising on the acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and expressed in its functional currency.

(5) Current and non-current distinction
An asset is classified as current when:
A. The Company expects to realize the asset, or intends to sell or consume it, in its normal operating cycle
B. The Company holds the asset primarily for the purpose of trading
C. The Company expects to realize the asset within twelve months after the reporting period
D. The asset is cash or cash equivalent unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

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A liability is classified as current when:

A. The Company expects to settle the liability in its normal operating cycle
B. The Company holds the liability primarily for the purpose of trading
C. The liability is due to be settled within twelve months after the reporting period
D. The Company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting period. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

All other liabilities are classified as non-current.

(6) Cash and cash equivalents

Cash and cash equivalents comprises cash on hand, demand deposits and short-term, highly liquid time deposits (including ones that have maturity within 12 months) or investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

(7) Financial instruments

Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions of the instrument.

Financial assets and financial liabilities within the scope of IFRS 9 Financial Instruments are recognized initially at fair value plus or minus, in the case of investments not at fair value through profit or loss, directly attributable transaction costs.

A. Financial instruments: Recognition and Measurement

The Company accounts for regular way purchase or sales of financial assets on the trade date.

The Company classified financial assets as subsequently measured at amortized cost, fair value through other comprehensive income or fair value through profit or loss considering both factors below:

(a) the Company’s business model for managing the financial assets and
(b) the contractual cash flow characteristics of the financial asset.

Financial assets measured at amortized cost

A financial asset is measured at amortized cost if both of the following conditions are met and presented as note receivables, trade receivables financial assets measured at amortized cost and other receivables etc., on balance sheet as at the reporting date:

(a) the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows and
(b) the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

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Such financial assets are subsequently measured at amortized cost (the amount at which the financial asset is measured at initial recognition minus the principal repayments, plus or minus the cumulative amortization using the effective interest method of any difference between the initial amount and the maturity amount and adjusted for any loss allowance) and is not part of a hedging relationship. A gain or loss is recognized in profit or loss when the financial asset is derecognized, through the amortization process or in order to recognise the impairment gains or losses.

Interest revenue is calculated by using the effective interest method. This is calculated by applying the effective interest rate to the gross carrying amount of a financial asset except for:

(a) purchased or originated credit-impaired financial assets. For those financial assets, the Company applies the credit-adjusted effective interest rate to the amortized cost of the financial asset from initial recognition.
(b) financial assets that are not purchased or originated credit-impaired financial assets but subsequently have become credit-impaired financial assets. For those financial assets, the Company applies the effective interest rate to the amortized cost of the financial asset in subsequent reporting periods.

Financial asset measured at fair value through other comprehensive income

A financial asset is measured at fair value through other comprehensive income if both of the following conditions are met:

(a) the financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and
(b) the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Recognition of gain or loss on a financial asset measured at fair value through other comprehensive income are described as below:

(a) A gain or loss on a financial asset measured at fair value through other comprehensive income recognized in other comprehensive income, except for impairment gains or losses and foreign exchange gains and losses, until the financial asset is derecognized or reclassified.
(b) When the financial asset is derecognized the cumulative gain or loss previously recognized in other comprehensive income is reclassified from equity to profit or loss as a reclassification adjustment.
(c) Interest revenue is calculated by using the effective interest method. This is calculated by applying the effective interest rate to the gross carrying amount of a financial asset except for:
i. Purchased or originated credit-impaired financial assets. For those financial assets, the Company applies the credit-adjusted effective interest rate to the amortized cost of the financial asset from initial recognition.
ii. Financial assets that are not purchased or originated credit-impaired financial assets but subsequently have become credit-impaired financial assets. For those financial assets, the Company applies the effective interest rate to the amortized cost of the financial asset in subsequent reporting periods.

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Besides, for certain equity investments within the scope of IFRS 9 that is neither held for trading nor contingent consideration recognized by an acquirer in a business combination to which IFRS 3 applies, the Company made an irrevocable election to present the changes of the fair value in other comprehensive income at initial recognition. Amounts presented in other comprehensive income shall not be subsequently transferred to profit or loss (when disposal of such equity instrument, its cumulated amount included in other components of equity is transferred directly to the retained earnings) and these investments should be presented as financial assets measured at fair value through other comprehensive income on the balance sheet. Dividends on such investment are recognized in profit or loss unless the dividends clearly represents a recovery of part of the cost of investment.

Financial asset measured at fair value through profit or loss

Financial assets were classified as measured at amortized cost or measured at fair value through other comprehensive income based on aforementioned criteria. All other financial assets were measured at fair value through profit or loss and presented on the balance sheet as financial assets measured at fair value through profit or loss.

Such financial assets are measured at fair value, the gains or losses resulting from remeasurement is recognized in profit or loss which includes any dividend or interest received on such financial assets.

B. Impairment of financial assets

The Company recognizes a loss allowance for expected credit losses on debt instrument investments measured at fair value through other comprehensive income and financial asset measured at amortized cost. The loss allowance on debt instrument investments measured at fair value through other comprehensive income is recognized in other comprehensive income and not reduce the carrying amount in the balance sheet.

The Company measures expected credit losses of a financial instrument in a way that reflects:

(a) An unbiased and probability-weighted amount that is determined by evaluating a range of possible outcomes;
(b) The time value of money; and
(c) Reasonable and supportable information that is available without undue cost or effort at the reporting date about past events, current conditions and forecasts of future economic conditions.

The loss allowance is measures as follow:

(a) At an amount equal to 12-month expected credit losses: the credit risk on a financial asset has not increased significantly since initial recognition or the financial asset is determined to have low credit risk at the reporting date. In addition, the Company measures the loss allowance at an amount equal to lifetime expected credit losses in the previous reporting period, but determines at the current reporting date that the credit risk on a financial asset has increased significantly since initial recognition is no longer met.

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(b) At an amount equal to the lifetime expected credit losses: the credit risk on a financial asset has increased significantly since initial recognition or financial asset that is purchased or originated credit-impaired financial asset.
(c) For trade receivables or contract assets arising from transactions within the scope of IFRS 15, the Company measures the loss allowance at an amount equal to lifetime expected credit losses.

At each reporting date, the Company needs to assess whether the credit risk on a financial asset has increased significantly since initial recognition by comparing the risk of a default occurring at the reporting date and the risk of default occurring at initial recognition. Please refer to Note 12 for further details on credit risk.

C. Derecognition of financial assets

A financial asset is derecognized when:

(a) The rights to receive cash flows from the asset have expired
(b) The Company has transferred the asset and substantially all the risks and rewards of the asset have been transferred
(c) The Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

On derecognition of a financial asset in its entirety, the difference between the carrying amount and the consideration received or receivable including any cumulative gain or loss that had been recognized in other comprehensive income, is recognized in profit or loss.

D. Financial liabilities and equity

Classification between liabilities or equity

The Company classifies the instrument issued as a financial liability or an equity instrument in accordance with the substance of the contractual arrangement and the definitions of a financial liability, and an equity instrument.

Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. The transaction costs of an equity transaction are accounted for as a deduction from equity (net of any related income tax benefit) to the extent they are incremental costs directly attributable to the equity transaction that otherwise would have been avoided.

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Compound instruments

The Company evaluates the terms of the convertible bonds issued to determine whether it contains both a liability and an equity component. Furthermore, the Company assesses if the economic characteristics and risks of the put and call options contained in the convertible bonds are closely related to the economic characteristics and risk of the host contract before separating the equity element.

For the liability component excluding the derivatives, its fair value is determined based on the rate of interest applied at that time by the market to instruments of comparable credit status. The liability component is classified as a financial liability measured at amortized cost before the instrument is converted or settled.

For the embedded derivative that is not closely related to the host contract (for example, if the exercise price of the embedded call or put option is not approximately equal on each exercise date to the amortized cost of the host debt instrument), it is classified as a liability component and subsequently measured at fair value through profit or loss unless it qualifies for an equity component. The equity component is assigned the residual amount after deducting from the fair value of the instrument as a whole the amount separately determined for the liability component. Its carrying amount is not remeasured in the subsequent accounting periods. If the convertible bond issued does not have an equity component, it is accounted for as a hybrid instrument in accordance with the requirements under IFRS 9 Financial Instruments .

Transaction costs are apportioned between the liability and equity components of the convertible bond based on the allocation of proceeds to the liability and equity components when the instruments are initially recognized.

On conversion of a convertible bond before maturity, the carrying amount of the liability component being the amortized cost at the date of conversion is transferred to equity.

Financial liabilities

Financial liabilities within the scope of IFRS 9 Financial Instruments are classified as financial liabilities at fair value through profit or loss or financial liabilities measured at amortized cost upon initial recognition.

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated as at fair value through profit or loss. A financial liability is classified as held for trading if:

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(a) It is acquired or incurred principally for the purpose of selling or repurchasing it in the near term;
(b) On initial recognition it is part of a portfolio of identified financial instruments that are managed together and for which there is evidence of a recent actual pattern of short-term profit-taking; or
(c) It is a derivative (except for a derivative that is a financial guarantee contract or a designated and effective hedging instrument).

If a contract contains one or more embedded derivatives, the entire hybrid (combined) contract may be designated as a financial liability at fair value through profit or loss; or a financial liability may be designated as at fair value through profit or loss when doing so results in more relevant information, because either:

(a) It eliminates or significantly reduces a measurement or recognition inconsistency; or
(b) A Company of financial liabilities or financial assets and financial liabilities is managed and its performance is evaluated on a fair value basis, in accordance with a documented risk management or investment strategy, and information about the Company is provided internally on that basis to the key management personnel.

Gains or losses on the subsequent measurement of liabilities at fair value through profit or loss including interest paid are recognized in profit or loss.

Financial liabilities at amortized cost

Financial liabilities measured at amortized cost include interest bearing loans and borrowings that are subsequently measured using the effective interest rate method after initial recognition. Gains and losses are recognized in profit or loss when the liabilities are derecognized as well as through the effective interest rate method amortization process.

Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or transaction costs.

Derecognition of financial liabilities

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires.

When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified (whether or not attributable to the financial difficulty of the debtor), such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in profit or loss.

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E. Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount reported in the balance sheet if, and only if, there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, or to realize the assets and settle the liabilities simultaneously.

(8) Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

A. In the principal market for the asset or liability, or

B. In the absence of a principal market, in the most advantageous market for the asset or liability

The principal or the most advantageous market must be accessible to by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

(9) Inventories

Inventories are valued at lower of cost and net realizable value item by item.

Costs incurred in bringing each inventory to its present location and condition are accounted for as follows:

Raw materials – Purchase cost on a first in, first out basis

Finished goods and work in progress – Cost of direct materials and labor and a proportion of manufacturing overheads based on normal operating capacity but excluding borrowing costs.

Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale.

(10) Investments accounted for using the equity method

The Company’s investment in its associate or joint venture is accounted for using the equity method other than those that meet the criteria to be classified as held for sale. An associate is an entity over which the Company has significant influence. A joint venture is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint venture.

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Under the equity method, the investment in the associate or an investment in a joint venture is carried in the balance sheet at cost and adjusted thereafter for the post-acquisition change in the Company’s share of net assets of the associate or joint venture. After the interest in the associate or joint venture is reduced to zero, additional losses are provided for, and a liability is recognized, only to the extent that the Company has incurred legal or constructive obligations or made payments on behalf of the associate or joint venture. Unrealized gains and losses resulting from transactions between the Company and the associate or joint venture are eliminated to the extent of the Company’s related interest in the associate or joint venture.

When changes in the net assets of an associate or a joint venture occur and not those that are recognized in profit or loss or other comprehensive income and do not affects the Company’s percentage of ownership interests in the associate or joint venture, the Company recognizes such changes in equity based on its percentage of ownership interests. The resulting capital surplus recognized will be reclassified to profit or loss at the time of disposing the associate or joint venture on a prorata basis.

When the associate or joint venture issues new stock, and the Company’s interest in an associate or a joint venture is reduced or increased as the Company fails to acquire shares newly issued in the associate or joint venture proportionately to its original ownership interest, the increase or decrease in the interest in the associate or joint venture is recognized in Additional Paid in Capital and Investment accounted for using the equity method. When the interest in the associate or joint venture is reduced, the cumulative amounts previously recognized in other comprehensive income are reclassified to profit or loss or other appropriate items. The aforementioned capital surplus recognized is reclassified to profit or loss on a pro rata basis when the Company disposes the associate or joint venture.

The financial statements of the associate or joint venture are prepared for the same reporting period as the Company. Where necessary, adjustments are made to bring the accounting policies in line with those of the Company.

The Company determines at each reporting date whether there is any objective evidence that the investment in the associate or an investment in a joint venture is impaired in accordance with IAS 28 Investments in Associates and Joint Ventures. If this is the case the Company calculates the amount of impairment as the difference between the recoverable amount of the associate or joint venture and its carrying value and recognizes the amount in the ‘share of profit or loss of an associate’ in the statement of comprehensive income in accordance with IAS 36 Impairment of Assets. In determining the value in use of the investment, the Company estimates:

A. Its share of the present value of the estimated future cash flows expected to be generated by the associate or joint venture, including the cash flows from the operations of the associate and the proceeds on the ultimate disposal of the investment; or
B. The present value of the estimated future cash flows expected to arise from dividends to be received from the investment and from its ultimate disposal.

Because goodwill that forms part of the carrying amount of an investment in an associate or an investment in a joint venture is not separately recognized, it is not tested for impairment separately by applying the requirements for impairment testing goodwill in IAS 36 Impairment of Assets.

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Upon loss of significant influence over the associate or joint venture, the Company measures and recognizes any retaining investment at its fair value. Any difference between the carrying amount of the associate or joint venture upon loss of significant influence and the fair value of the retaining investment and proceeds from disposal is recognized in profit or loss. Furthermore, if an investment in an associate becomes an investment in a joint venture or an investment in a joint venture becomes an investment in an associate, the entity continues to apply the equity method and does not remeasure the retained interest.

(11) Property, plant and equipment

Property, plant and equipment is stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. Such costs include the cost of dismantling and removing the item and restoring the site on which it is located and borrowing costs for construction in progress if the recognition criteria are met. Each part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the item is depreciated separately. When significant parts of property, plant and equipment are required to be replaced in intervals, the Company recognizes such parts as individual assets with specific useful lives and depreciation, respectively. The carrying amount of those parts that are replaced is derecognized in accordance with the derecognition provisions of IAS 16 Property, plant and equipment. When a major inspection is performed, its cost is recognized in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognized in profit or loss as incurred.

Depreciation is calculated on a straight-line basis over the estimated economic lives of the following assets:

assets:
Buildings	35`～`57 years
Machinery and Equipment	1`～`6 years
Molding Equipment	2 years
Right-of-use assets/leased assets	1`～`10 years
Other Facilities	1`～`6 years

An item of property, plant and equipment and any significant part initially recognized is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset is recognized in profit or loss.

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.

(12) Investment property

The Company’s owned investment properties are measured initially at cost, including transaction costs. The carrying amount includes the cost of replacing part of an existing investment property at the time that cost is incurred if the recognition criteria are met and excludes the costs of day-to-day servicing of an investment property. Subsequent to initial recognition, other than those that meet the criteria to be classified as held for sale (or are included in a disposal Company that is classified as held for sale) in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, investment properties are measured using the cost model in accordance with the requirements of IAS 16 Property, plant and equipment for that model. If investment properties are held by a lessee as rightof-use assets and is not held for sale in accordance with IFRS 5, investment properties are measured in accordance with the requirements of IFRS 16.

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Depreciation is calculated on a straight-line basis over the estimated economic lives of the following assets:

Buildings

55 ～ 57 years

Investment properties are derecognized when either they have been disposed of or when the investment property is permanently withdrawn from use and no future economic benefit is expected from its disposal. The difference between the net disposal proceeds and the carrying amount of the asset is recognized in profit or loss in the period of derecognition.

The Company transfers to or from investment properties when there is a change in use for these assets. Properties are transferred to or from investment properties when the properties meet, or cease to meet, the definition of investment property and there is evidence of the change in use.

(13)Leases

For contracts entered on, the Conpany assesses whether the contract is or contains a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset for a period of time, the Conpany assesses whether the contract, throughout the period of use, has both of the following:

A. The right to obtain substantially all of the economic benefits from use of the identified asset; and B. The right to direct the use of the identified asset.

For a contract that is, or contains, a lease, the Company accounts for each lease component within the contract as a lease separately from non-lease components of the contract. For a contract that contains a lease component and one or more additional lease or non-lease components, the Company allocates the consideration in the contract to each lease component on the basis of the relative stand-alone price of the lease component and the aggregate stand-alone price of the non-lease components. The relative stand-alone price of lease and non-lease components shall be determined on the basis of the price the lessor, or a similar supplier, would charge the Company for that component, or a similar component, separately. If an observable stand-alone price is not readily available, the Company estimates the standalone price, maximising the use of observable information.

Company as a lessee

Except for leases that meet and elect short-term leases or leases of low-value assets, the Company recognizes right-of-use asset and lease liability for all leases which the Company is the lessee of those lease contracts.

At the commencement date, the Company measures the lease liability at the present value of the lease payments that are not paid at that date. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined, the Company uses its incremental borrowing rate. At the commencement date, the lease payments included in the measurement of the lease liability comprise the following payments for the right to use the underlying asset during the lease term that are not paid at the commencement date:

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A. Fixed payments (including in-substance fixed payments), less any lease incentives receivable;
B. Variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;
C. Amounts expected to be payable by the lessee under residual value guarantees;
D. The exercise price of a purchase option if the Company is reasonably certain to exercise that option; and
E. Payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an option to terminate the lease.

After the commencement date, the Company measures the lease liability on an amortised cost basis, which increases the carrying amount to reflect interest on the lease liability by using an effective interest method; and reduces the carrying amount to reflect the lease payments made.

At the commencement date, the Company measures the right-of-use asset at cost. The cost of the rightof-use asset comprises:

A. The amount of the initial measurement of the lease liability;
B. Any lease payments made at or before the commencement date, less any lease incentives received;
C. Any initial direct costs incurred by the lessee; and
D. An estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease.

For subsequent measurement of the right-of-use asset, the Company measures the right-of-use asset at cost less any accumulated depreciation and any accumulated impairment losses. That is, the Company measures the right-of-use applying a cost model.

If the lease transfers ownership of the underlying asset to the Company by the end of the lease term or if the cost of the right-of-use asset reflects that the Company will exercise a purchase option, the Company depreciates the right-of-use asset from the commencement date to the end of the useful life of the underlying asset. Otherwise, the Company depreciates the right-of-use asset from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term.

The Company applies IAS 36 “Impairment of Assets” to determine whether the right-of-use asset is impaired and to account for any impairment loss identified.

Except for those leases that the Company accounted for as short-term leases or leases of low-value assets, the Company presents right-of-use assets and lease liabilities in the balance sheet and separately presents lease-related interest expense and depreciation charge in the statements comprehensive income.

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For short-term leases or leases of low-value assets, the Company elects to recognize the lease payments associated with those leases as an expense on either a straight-line basis over the lease term or another systematic basis.

Company as a lessor

At inception of a contract, the Company classifies each of its leases as either an operating lease or a finance lease. A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership of an underlying asset. A lease is classified as an operating lease if it does not transfer substantially all the risks and rewards incidental to ownership of an underlying asset. At the commencement date, the Company recognizes assets held under a finance lease in its balance sheet and present them as a receivable at an amount equal to the net investment in the lease.

For a contract that contains lease components and non-lease components, the Company allocates the consideration in the contract applying IFRS 15.

The Company recognizes lease payments from operating leases as rental income on either a straightline basis or another systematic basis. Variable lease payments for operating leases that do not depend on an index or a rate are recognized as rental income when incurred.

(14)Intangible assets

Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is its fair value as at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and accumulated impairment losses, if any. Internally generated intangible assets, excluding capitalized development costs, are not capitalized and expenditure is reflected in profit or loss for the year in which the expenditure is incurred.

The useful lives of intangible assets are assessed as either finite or indefinite.

Intangible assets with finite lives are amortized over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization period and the amortization method for an intangible asset with a finite useful life is reviewed at least once at the end of each financial year. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset is accounted for by changing the amortization period or method, as appropriate, and are treated as changes in accounting estimates.

Intangible assets with indefinite useful lives are not amortized, but are tested for impairment annually, either individually or at the cash-generating unit level. The assessment of indefinite life is reviewed annually to determine whether the indefinite life continues to be supportable. If not, the change in useful life from indefinite to finite is made on a prospective basis.

Gains or losses arising from derecognition of an intangible asset are recognizeed in profit or loss.

～27～

Research and development costs

Research costs are expensed as incurred. Development expenditures, on an individual project, are recognized as an intangible asset when the Company can demonstrate the following:

A. the technical feasibility of completing the intangible asset so that it will be available for use or sale
B. its intention to complete and its ability to use or sell the asset
C. how the asset will generate future economic benefits
D. the availability of resources to complete the asset
E. the ability to measure reliably the expenditure during development

Following initial recognition of the development expenditure as an asset, the cost model is applied requiring the asset to be carried at cost less any accumulated amortization and accumulated impairment losses. During the period of development, the asset is tested for impairment annually. Amortization of the asset begins when development is complete and the asset is available for use. It is amortized over the period of expected future benefit.

A summary of the policies information applied to the Company’s intangible assets is as follows:

Useful lives Amortization method used Internally generated or acquired	Patents	Computer software Finite(1`～`4 years) Amortized on a straight-line basis Acquired
	Finite(5 years) Amortized on a straight-line basis Acquired

(15) Impairment of non-financial assets

The Company assesses at the end of each reporting period whether there is any indication that an asset in the scope of IAS 36 Impairment of Assets may be impaired. If any such indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s (“CGU”) fair value less costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or Companys of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

For assets excluding goodwill, an assessment is made at each reporting date as to whether there is any indication that previously recognized impairment losses may no longer exist or may have decreased. If such indication exists, the Company estimates the asset’s or cash-generating unit’s recoverable amount. A previously recognized impairment loss is reversed only if there has been an increase in the estimated service potential of an asset which in turn increases the recoverable amount. However, the reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior years.

～28～

A cash generating unit, or groups of cash-generating units, to which goodwill has been allocated is tested for impairment annually at the same time, irrespective of whether there is any indication of impairment. If an impairment loss is to be recognized, it is first allocated to reduce the carrying amount of any goodwill allocated to the cash generating unit (group of units), then to the other assets of the unit (group of units) pro rata on the basis of the carrying amount of each asset in the unit (group of units). Impairment losses relating to goodwill cannot be reversed in future periods for any reason.

An impairment loss of continuing operations or a reversal of such impairment loss is recognized in profit or loss.

(16) Provisions

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probably that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Where the Company expects some or all of a provision to be reimbursed, the reimbursement is recognized as a separate asset but only when the reimbursement is virtually certain. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

(17) Revenue recognition

The Company’s revenue arising from contracts with customers are primarily related to sale of goods and rendering of services. The accounting policies are explained as follow:

The Company manufactures and sells machinery. Sales are recognized when control of the goods is transferred to the customer. The main product of the Company is 3C electronic products and revenue is recognized based on the consideration stated in the contract. The practical convention of some customer contracts will offer allowance in subsequent periods. The Company estimates based on historical experience of the possible refund, recognized as a reduction in operating revenue and as a refund liability. The aforementioned estimate will be updated according to the situation on the balance sheet date during the contract period.

The credit period of the Company’s sale of goods is from 90 to 150 days. For all of the contracts, when the Company transfers the goods to customers and has a right to an amount of consideration that is unconditional, these contracts are recognized as trade receivables. The Company usually collects the payments shortly after transfer of goods to customers; therefore, there is no significant financing component to the contract.

However, for some rendering of services contracts, part of the consideration was received from customers upon signing the contract, and the Company has the obligation to provide the services subsequently; accordingly, these amounts are recognized as contract liabilities.

The period between the transfers of contract liabilities to revenue is usually within one year, thus, no significant financing component is arised.

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(18) Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective assets. All other borrowing costs are expensed in the period they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds.

(19) Share-based payment transactions

The cost of equity-settled transactions between the Company and its subsidiaries is recognized based on the fair value of the equity instruments granted. The fair value of the equity instruments is determined by using an appropriate pricing model.

The cost of equity-settled transactions is recognized, together with a corresponding increase in other capital reserves in equity, over the period in which the performance and/or service conditions are fulfilled. The cumulative expense recognized for equity-settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period has expired and the Company’s best estimate of the number of equity instruments that will ultimately vest. The income statement expense or credit for a period represents the movement in cumulative expense recognized as at the beginning and end of that period.

No expense is recognized for awards that do not ultimately vest, except for equity-settled transactions where vesting is conditional upon a market or non-vesting condition, which are treated as vesting irrespective of whether or not the market or non-vesting condition is satisfied, provided that all other performance and/or service conditions are satisfied.

Where the terms of an equity-settled transaction award are modified, the minimum expense recognized is the expense as if the terms had not been modified, if the original terms of the award are met. An additional expense is recognized for any modification that increases the total fair value of the sharebased payment transaction, or is otherwise beneficial to the employee as measured at the date of modification.

Where an equity-settled award is cancelled, it is treated as if it vested on the date of cancellation, and any expense not yet recognized for the award is recognized immediately. This includes any award where non-vesting conditions within the control of either the entity or the employee are not met. However, if a new award is substituted for the cancelled award, and designated as a replacement award on the date that it is granted, the cancelled and new awards are treated as if they were a modification of the original award, as described in the previous paragraph.

The dilutive effect of outstanding options is reflected as additional share dilution in the computation of diluted earnings per share.

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(20) Post-employment benefits

All regular employees of the Company and its domestic subsidiaries are entitled to a pension plan that is managed by an independently administered pension fund committee. Fund assets are deposited under the committee’s name in the specific bank account and hence, not associated with the Company and its domestic subsidiaries. Therefore fund assets are not included in the Company’s parent company only financial statements. Pension benefits for employees of the overseas subsidiaries and the branches are provided in accordance with the respective local regulations.

For the defined contribution plan, the Company and its domestic subsidiaries will make a monthly contribution of no less than 6% of the monthly wages of the employees subject to the plan. The Company recognizes expenses for the defined contribution plan in the period in which the contribution becomes due. Overseas subsidiaries and branches make contribution to the plan based on the requirements of local regulations.

Post-employment benefit plan that is classified as a defined benefit plan uses the Projected Unit Credit Method to measure its obligations and costs based on actuarial assumptions. Re-measurements, comprising of the effect of the actuarial gains and losses, the effect of the asset ceiling (excluding net interest) and the return on plan assets, excluding net interest, are recognized as other comprehensive income with a corresponding debit or credit to retained earnings in the period in which they occur.

Past service costs are recognized in profit or loss on the earlier of:

A. The date of the plan amendment or curtailment, and
B. The date that the Company recognizes restructuring-related costs

Net interest is calculated by applying the discount rate to the net defined benefit liability or asset, both as determined at the start of the annual reporting period, taking account of any changes in the net defined benefit liability (asset) during the period as a result of contribution and benefit payment.

(21) Income taxes

Income tax expense (income) is the aggregate amount included in the determination of profit or loss for the period in respect of current tax and deferred tax.

Current income tax

Current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities, using the tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period. Current income tax relating to items recognized in other comprehensive income or directly in equity is recognized in other comprehensive income or equity and not in profit or loss.

The income tax for undistributed earnings is recognized as income tax expense in the subsequent year when the distribution proposal is approved by the Shareholders’ meeting.

～31～

Deferred tax

Deferred tax is provided on temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.

Deferred tax liabilities are recognized for all taxable temporary differences, except:

A. Where the deferred tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss
B. In respect of taxable temporary differences associated with investments in subsidiaries and associates, where the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.

Deferred tax assets are recognized for all deductible temporary differences, carry forward of unused tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized, except:

A. Where the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss
B. In respect of deductible temporary differences associated with investments in subsidiaries and associates, deferred tax assets are recognized only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilized.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted at the reporting date. The measurement of deferred tax assets and deferred tax liabilities reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Deferred tax relating to items recognized outside profit or loss is recognized outside profit or loss. Deferred tax items are recognized in correlation to the underlying transaction either in other comprehensive income or directly in equity. Deferred tax assets are reassessed at each reporting date and are recognized accordingly.

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Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current income tax assets against current income tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

(22) Business combinations and goodwill

Business combinations are accounted for using the acquisition method. The consideration transferred, the identifiable assets acquired and liabilities assumed are measured at acquisition date fair value. For each business combination, the acquirer measures any non-controlling interest in the acquiree either at fair value or at the non-controlling interest’s proportionate share of the acquiree’s identifiable net assets. Acquisition-related costs are accounted for as expenses in the periods in which the costs are incurred and are classified under administrative expenses.

When the Company acquires a business, it assesses the assets and liabilities assumed for appropriate classification and designation in accordance with the contractual terms, economic circumstances and pertinent conditions as at the acquisition date. This includes the separation of embedded derivatives in host contracts by the acquiree.

If the business combination is achieved in stages, the acquisition date fair value of the acquirer’s previously held equity interest in the acquiree is remeasured to fair value at the acquisition date through profit or loss.

Any contingent consideration to be transferred by the acquirer will be recognized at the acquisitiondate fair value. Subsequent changes to the fair value of the contingent consideration which is deemed to be an asset or liability, will be recognized in accordance with IFRS 9 Financial Instruments either in profit or loss or as a change to other comprehensive income. However, if the contingent consideration is classified as equity, it should not be remeasured until it is finally settled within equity.

Goodwill is initially measured as the amount of the excess of the aggregate of the consideration transferred and the non-controlling interest over the net fair value of the identifiable assets acquired and the liabilities assumed. If this aggregate is lower than the fair value of the net assets acquired, the difference is recognized in profit or loss.

After initial recognition, goodwill is measured at cost less any accumulated impairment losses. Goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Company’s cash-generating units that are expected to benefit from the combination, irrespective of whether other assets or liabilities of the acquiree are assigned to those units. Each unit or group of units to which the goodwill is so allocated represents the lowest level within the Company at which the goodwill is monitored for internal management purpose and is not larger than an operating segment before aggregation.

Where goodwill forms part of a cash-generating unit and part of the operation within that unit is disposed of, the goodwill associated with the operation disposed of is included in the carrying amount of the operation. Goodwill disposed of in this circumstance is measured based on the relative recoverable amounts of the operation disposed of and the portion of the cash-generating unit retained.

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5. Significant accounting judgements, estimates and assumptions

The preparation of the Company’s parent company only financial statements require management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities, at the end of the reporting period. However, uncertainty about these assumption and estimate could result in outcomes that require a material adjustment to the carrying amount of the asset or liability affected in future periods.

Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

Inventories

Estimates of net realisable value of inventories take into consideration that inventories may be damaged, become wholly or partially obsolete, or their selling prices have declined. The estimates are based on the most reliable evidence available at the time the estimates are made. Please refer to Note 6 for more details.

6. Contents of significant accounts

(1) Cash and cash equivalents

Cash and cash equivalents
Cash on hand and demand deposits Time deposits Commercial paper Total	31 Dec 2023	31 Dec 2022
	$6,184,059 4,709,332 `－`	$7,086,696 932,320 30,710
	$10,893,391	$8,049,726

(2) Financial assets measured at amortized cost, current

Bank deposits	31 Dec 2023	31 Dec 2022
	$1,600,297	$1,246,834

The Company classified certain financial assets as financial assets measured at amortized cost. Please refer to Note 8 for more details on financial assets measured at amortized cost under pledge and Note 12 for details on credit risk and assessment of impairment loss.

(3) Notes receivable, net

A.

Notes receivable, net .
Notes receivable Less: loss allowance Total	31 Dec 2023	31 Dec 2022
	`－` `－`	$1,204 (12)
	`－`	$1,192

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B. Notes receivables arised from operating activities and were not pledged.
C. The Company follows the requirement of IFRS 9 to assess the impairment. The Company measures the loss allowance of its note receivables at an amount equal to lifetime expected credit losses. The movement in the provision for impairment of note receivables is as follows:

Movement of the loss allowance table:

As of 1 Jan 2023 (Reversal) for the current period As of 31 Dec 2023 As of 1 Jan 2022 Charge for the current period As of 31 Dec 2022	Loss allowance
	$12 (12)
	`－`
	`－` $12
	$12

(4) Accounts receivable, net

Accounts receivable, net
A. Account receivables Less: loss allowance Subtotal Accounts receivable-related parties Total	31 Dec 2023	31 Dec 2022
	$1,854,042 (123,099)	$1,329,229 (89,173)
	$1,730,943	$1,240,056
	86,684	126,935
	$1,817,627	$1,366,991

B. Accounts receivables were not pledged.
C. Trade receivables are generally on 90-150 day terms. The total carrying amount as of December 31, 2023 and December 31, 2022 were $1,854,042 thousand and $1,329,229 thousand, respectively. The Company follows the requirement of IFRS 9 to assess the impairment, measure the loss allowance of its trade receivables at an amount equal to lifetime expected credit losses, condsider the Companying of note receivables by counterparties’ credit rating, by geographical region and by industry sector, and its loss allowance is recognized based on expected loss ratio, details are as follow.

Neither past due nor impaired	Past due but not impaired	Past due but not impaired	Past due but not impaired	Total
	31~90 days	91~180 days	>=181 days
$1,940,726 0%~5% 123,099	`－` 1%~10% `－`	`－` 5%~20% `－`	`－` 50%~100% `－`	$1,940,726 123,099
$1,817,627	`－`	`－`	`－`	$1,817,627
$1,454,343 0%~5% 89,155	$1,821 1%~10% 18	`－` 5%~20% `－`	`－` 50%~100% `－`	$1,456,164 89,173
$1,365,188	$1,803	`－`	`－`	$1,366,991

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D. Movement of the loss allowance table:

Movement of the loss allowance table:
As of 1 Jan 2023 Charge for the current period As of 31 Dec 2023 As of 1 Jan 2022 Charge for the current period As of 31 Dec 2022	Collectively impaired	Total
	$89,173 33,926	$89,173 33,926
	$123,099	$123,099
	$71,249 17,924	$71,249 17,924
	$89,173	$89,173

E. The Company entered into a factoring agreement with the following banks to sell its accounts receivable. Under the agreement, the Company is not obligated to bear the default risk of the transferred accounts receivable, but is liable for the losses incurred on any business dispute. The Company does not have any continuing involvement in the transferred accounts receivable. Thus, the Company derecognized the transferred accounts receivable.

As of 31 December 2023 and 2022, other receivables from banks incurred by accounts receivable factoring amounted to NT$459,167 thousand and NT$155,123 thousand, respectively.

As of 31 December 2023 and 2022, the relevant information of accounts receivable factored and derecognised by the Company is as follows:

(a) 31 December 2023:

The Factor (Transferee) E. Sun Bank CTBC Bank Total The Factor (Transferee) E. Sun Bank CTBC Bank Total	Interest Rates (%) Accounts receivable factoring not yet due (in thousands of US dollars) `－` $ 13,359 `－` 1,595 $14,954 (b) 31 December, 2022: Interest Rates (%) Accounts receivable factoring not yet due (in thousands of US dollars) 5.127%~ 5.325% $ 31,484 5.3911%~ 5.4043% 11,610 $43,094	Amount received (in thousands of US dollars) `－` `－` `－` Amount received (in thousands of US dollars) $ 27,594 10,449 $38,043	Retention (recognized as other receivables) (in thousands of US dollars) $ 13,359 1,595 $14,954 Retention (recognized as other receivables) (in thousands of US dollars) $ 3,890 1,161 $5,051	Credit Limit (in thousands of US dollars) $100,000 20,000
				$120,000
				Credit Limit (in thousands of US dollars)
				$100,000 20,000
				$120,000

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(5) Other receivables and other receivables-related parties

Other receivables Less: loss allowance Subtotal Other receivables`－`related parties Total	31 Dec 2023 $566,458 (7,080) 559,378 19,389 $578,767	31 Dec 2022
		$252,039 (5,078)
		246,961
		53,534
		$300,495

B. The Company follows the requirement of IFRS 9 to assess the impairment. The Company measures the loss allowance of its other receivables at an amount equal to lifetime expected credit losses, condsiders the Companying of note receivables by counterparties’ credit rating, by geographical region and by industry sector and its loss allowance is recognized based on expected loss ratio, details are as follow. Please refer to Note 12 for more details on credit risk management.
C. Movement of the loss allowance table:

Movement of the loss allowance table:
	Collectively
	impaired
As of 1 Jan 2023	$5,078
Charge for the current period	2,002
As of 31 Dec 2023	$7,080
As of 1 Jan 2022	$5,788
(Reversal) for the current period	(710)
As of 31 Dec 2022	$5,078

D. Ageing analysis of accounts receivables that is past due as of the end of the reporting period but not impaired is as follows:

not impaired is	as follows:
As of 31 Dec 2023 31 Dec 2022 ntories Raw materials Finished goods Total	Neither past due nor impaired	Past due but not impaired				Total
		31~90 days		91~180 days	>=181 days
	$509,846 $154,886
			$3,853 12,075,978
			$12,079,831

(6) Inventories

A.
B. Expenses and losses incurred on inventories for the years ended 31 December 2023 and 2022 were as follows:

as follows:
Cost of inventories sold (Gain) on inventory valuation Cost of goods sale	2023	2022
	$36,489, 748 (45,477)	$33,662,137 (78,060)
	$36,444,271	$33,584,077

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C. For the Company's years ended December 31 2023 and 2022, due to factors such as the rebound in the inventory price of the provision for decline in inventories at the beginning of the period, or the sale or use of the inventory, the assessment of the allowance for the provisioned inventory is recognized. The reversal of inventory write-down due to the reduction in inventory recognition loss were $45,477 thousand and $78,060 thousand, respectively.
D. No inventories were pledged.
(7) Prepayments

Prepayments
Payment in advance Other prepaid expenses Total	31 Dec 2023 `－` $15,551 $15,551	31 Dec 2022
		$3,017 17,955
		$20,972

(8) Investments accounted for under the equity method
A. The following table lists the investments in associates of the Company:

	31 Dec 2023	31 Dec 2023	31 Dec 2022	31 Dec 2022
Investees	Carrying	Percentage of	Carrying	Percentage of
	amount	ownership (%)	amount	ownership (%)
Investments in subsidiaries:
AVC INTERNATIONAL CO., LTD.`－`B.V.I	$11,043,156	100%	$10,145,113	100%
CHIHUNG INTERNATIONAL LTD.	6,154,608	100%	5,548,633	100%
MERIT TRADING CORPORATION	93,664	100%	132,794	100%
RAYNEY INTERNATIONAL LTD.	197,047	100%	131,536	100%
AVC AMERICA,INC.	229,735	100%	226,334	100%
AVC INTERNATIONAL (SAMOA) CO., LTD.	11,201	100%	6,930	100%
JADS CORPORATION (HK)LTD.	28,913	100%	26,546	100%
AVC INTERNATIONAL CO., LTD.`－`SAMOA	35,121	100%	129,057	100%
AVC EUROPE TECHNOLOGY GMBH	8,857	100%	8,447	100%
AVC TECH.(VIETNAM) CO.,LTD.	1,076,046	100%	1,372,455	100%
HUNG YE INVESTMENT CO., LTD.	5,398	100%	5,381	100%
D-MAX TECHNOLOGY CO., LTD.	359,721	100%	317,605	100%
FOSITEK CORP.	778,098	16.87%	459,294	19.25%
Subtotal	20,021,565		18,510,125
Investments in associates:
ZIMAG TECHNOLOGY CO., INC. (Note)	50,498	9.53`％`	50,818	9.53%
PARAGON SEMICONDUCTOR LIGHTING TECHNOLOGY CO.,LTD.	43,906	40`％`	`－`	`－`

Subtotal	94,404		50,818
Total	$20,115,969		$18,560,943

Note: The Company evaluated and concluded that it has significant influence over Innovision, thus, this investment of the Company used the equity method for evaluation.

～38～

Certain investments accounted for under the equity method were audited by other independent accountants. The balances of investments accounted for under the equity method were NT$508,076 thousand and NT$439,661 thousand as of 31 December 2023 and 2022, respectively. Shares of profit or loss of these subsidiaries and associates amounted to NT$83,696 thousand and NT$86,341 thousand for the years ended 31 December 2023 and 2022, respectively. Share of other comprehensive income (loss) of these subsidiaries and associates amounted to NT($1,200) thousand and NT($20) thousand for the years ended 31 December 2023 and 2022, respectively.

B. Financial information of associates:

The Company’s investment in associates. is not individually material. The aggregate carrying amount of the Company’s interests in associatesis is NT$94,404 and NT$50,818 thousand, for the years ended December 31, 2023 and 2022, respectively. The aggregate financial information of the Company’s investments in associates is as follows:

Net (loss) income Other comprehensive (loss) Total comprehensive (loss) income	For theyears ended December 31	For theyears ended December 31
	2023 ($1,974) (1,200) ($3,174)	2022
		$8,798 (20)
		$8,778

None of the aforementioned associates were pledged.

(9) Property, plant and equipment

Property, plant and equipment
Owner occupied property, plant and equipment	31 Dec 2023	31 Dec 2022
	$422,519	$506,741

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A. Owner occupied property, plant and equipment (applicable under IFRS 16 requirements)

Land	Buildings	Machinery and equipment	Molding equipment	Other facilities	Construction in progress and equipment awaiting examination	Total
$167,151 －－－	$224,406 －－ 11,033	$256,149 81 (108,833) －	$17,197 －－－	$342,885 42,283 (18,699) 14,418	$5,750 8,668 － (14,418)	$1,013,538 51,032 (127,532) 11,033
$167,151	$235,439	$147,397	$17,197	$380,887	－	$948,071
`－` `－` `－` `－`	$93,434 5,388 － 4,856	$141,812 22,139 (35,825) `－`	$16,819 312 `－` `－`	$248,732 39,899 (18,014) `－`	－－－ `－`	$506,797 67,738 (53,839) 4,856
`－`	$109,678	$128,126	$17,131	$270,617	－	$525,552

～40～

Land	Buildings	Machinery and equipment	Molding equipment	Other facilities	Construction in progress and equipment awaiting examination	Total
$167,151 －－－	$224,406 －－－	$320,790 8,048 (72,689) －	$18,353 624 (1,780) －	$297,718 57,250 (12,083) －	－ $5,750 －－	$1,028,418 71,672 (86,552) －
$167,151	$224,406	$256,149	$17,197	$342,885	$5,750	$1,013,538
`－` `－` `－` `－`	$93,932 5,502 － `－`	$131,958 51,300 (41,446) `－`	$17,841 549 (1,571) `－`	$219,664 40,882 (11,814) `－`	－－－ `－`	$463,395 98,233 (54,831) `－`
`－`	$99,434	$141,812	$16,819	$248,732	－	$506,797
$167,151	$125,761	$19,271	$66	$110,270	－	$422,519
$167,151	$124,972	$114,337	$378	$94,153	$5,750	$506,741

Please refer to Note 8 for more details on property, plant and equipment under pledge.

～41～

(10) Investment property

Investment property
Land Cost`：` As of 1 Jan 2023 `－` Transfers and reclassifications `－` As of 31 Dec 2023 `－` As of 1 Jan 2022 `－` Transfers and reclassifications `－` As of 31 Dec 2022 `－` Depreciation and impairment: As of 1 Jan 2023 `－` Depreciation `－` Transfers and reclassifications `－` As of 31 Dec 2023 `－` As of 1 Jan 2022 `－` Depreciation `－` Transfers and reclassifications `－` As of 31 Dec 2022 `－` Net carrying amount as at: As of 31 Dec 2023 `－` As of 31 Dec 2022 `－` Rental income from investment property Less: Direct operating expenses from investment property generating rental income Total	Land	Buildings	Total $107,105 (11,033) $96,072 $107,105 `－` $107,105 $76,128 2,008 (4,856) $73,280 $74,234 1,894 `－` $76,128 $22,792 $30,977 2022
	`－` `－`	$107,105 (11,033)
	`－`	$96,072
	`－` `－`	$107,105 `－`
	`－`	$107,105
	`－` `－` `－`	$76,128 2,008 (4,856)
	`－`	$73,280
	`－` `－` `－`	$74,234 1,894 `－`
	`－`	$76,128
	`－`	$22,792
	`－`	$30,977
		2023 $7,173 (4,152) $3,021
			$6,498 (4,032)
			$2,466

Please refer to Note 8 for more details on investment property under pledge.

The investment property held by the Company is industrial land and buildings, and the fair value is equivalent to the carrying value.

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(11) Intangible assets

Intangible assets	Intangible assets	Intangible assets	Intangible assets
Computer software Patents Licensefee Total Cost: As of 1 Jan 2023 $145,088 $3,686 $25,679 $174,453 Addition 38,259 `－` `－` 38,259 Transfers and reclassifications `－` `－` `－` `－` As of 31 Dec 2023 $183,347 $3,686 $25,679 $212,712 As of 1 Jan 2022 $136,861 $3,686 $25,679 $166,226 Addition 8,227 `－` `－` 8,227 Transfers and reclassifications `－` `－` `－` `－` As of 31 Dec 2022 $145,088 $3,686 $25,679 $174,453 Amortization and impairment: As of 1 Jan 2023 $115,457 $3,686 $21,151 $140,294 Amortization 32,553 `－` 876 33,429 As of 31 Dec 2023 $148,010 $3,686 $22,027 $173,723 As of 1 Jan 2022 $92,728 $3,686 $20,275 $116,689 Amortization 22,729 `－` 876 23,605 As of 31 Dec 2022 $115,457 $3,686 $21,151 $140,294 Net carrying amount as at: 31 Dec 2023 $35,337 `－` $3,652 $38,989 31 Dec 2022 $29,631 `－` $4,528 $34,159 Amortization expense of intangible assets under the statement of comprehensive income: 2023 2022 Operating costs `－` `－` Operating expenses $33,429 $23,605 Other non-current assets 31 Dec 2023 31 Dec 2022 Advance payments in equipments $3,981 $8,622 Refundable deposits 8,213 16,982 Others 4,492 `－` Total $16,686 $25,604
	`－`	`－`
	$33,429	$23,605
		31 Dec 2023
		$3,981 8,213 4,492	$8,622 16,982 `－`
		$16,686	$25,604

(12) Other non-current assets

Please refer to Note 8 for more details on other non-current assets under pledge.

(13) Short-term borrowings

Short-term borrowings
A. Unsecured bank loans	31 Dec2023	31 Dec2022
	$2,186,205	$3,190,000

B. Interest rate ranges are within 1.6500%~1.7740% and 1.3700%~1.8160% as of 31 December 2023 and 2022, respectively.
C. The maturity date as of 31 December 2023 due by 14 November 2024.
D. The Company’s unused short-term lines of credits amounted to NT$6,625,250 thousand and NT$4,180,530 thousand as of 31 December 2023 and 2022, respectively.

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(14) Other payable

Other payable
Salaries and bonus Employee’s compensation and remuneration of directors Others Total	31 Dec 2023	31 Dec 2022
	$782,038 319,296 1,664,569	$446,529 255,198 1,088,772
	$2,765,903	$1,790,499

(15) Other current liabilities

31 Dec 2023	31 Dec 2023	31 Dec 2022
$1,151,255 786,779		$1,274,234 2,611,983
$1,938,034		$3,886,217
31 Dec 2023		Collateral
$2,400,000 `－`	$2,400,000 `－`	Bank guarantee
$2,400,000	$2,400,000

(16) Corporate Bonds payable

The issuance of the above corporate bonds payable is to repay existing loans and expand working capital, the Company entered into a syndicated credit facility agreement with 9 banks by E.SUN Commercial Bank, Taiwan Cooperative Bank, Hua Nan Commercial Bank, Bank of Taiwan, Land Bank of Taiwan, Mega International Commercial Bank, The Shanghai Commercial & Savings Bank, First Commercial Bank and CTBC Bank for a NT$2,424,000 thousand credit line.

- (17) Long term borrowings

Unsecured Long-Term Loan from Shanghai Commercial & Savings Bank Unsecured Long-Term Loan from Shanghai Commercial & Savings Bank	31 Dec 2023	31 Dec 2022	Redemption
	`－` `－`	$87,500 175,000	Effective 17 Sep 2021 to 17 Sep 2024. Three-year loan: principal is repaid in quarterly payments with monthly interest payments. Effective 25 Oct 2021 to 17 Sep 2024. Three-year loan: principal is repaid in quarterly payments with monthly interest payments.

～44～

Unsecured Long-Term Loan	`－`	$100,000 Effective 23 Jun 2021 to 31 Dec
from Taipei Fubon Bank		2023. Three-year loan: first period
		begins 18 months after first
		allocation. Principal is repaid in 6
		quarterly payments with monthly
		interest payments.
Unsecured Long-Term Loan	`－`	141,666 Effective 25 May 2021 to 25
from Bank of Taiwan		May 2024. Three-year loan:
		interest-only payment for the first
		year. Principal is repaid with
		monthly interest payments.
Unsecured Long-Term Loan	`－`	175,000 Effective 16 Sep 2021 to 16 Sep
from E. Sun Bank		2024. Three-year loan: interest-
		only payment for the first year.
		Principal is amortized on a
		quarterly basis, and interest is
		paid on a monthly basis.
Unsecured Long-Term Loan	$500,000	`－`Effective 25 Aug 2023 to 25 Aug
from E. Sun Bank		2026. Three-year loan: interest-
		only payment for the first year.
		Principal is amortized on a
		quarterly basis, and interest is
		paid on a monthly basis.
Unsecured Long-Term Loan	`－`	105,000 Effective 3 Sep 2019 to 3 Sep
from Taiwan Cooperative		2024. Five-year loan: Principal is
Bank		amortized on a quarterly basis,
		and interest is paid on a monthly
		basis.
Unsecured Long-Term Loan	`－`	132,000 Effective 19 Nov 2021 to 19 Nov
from Jih Sun Bank		2023. Two-year loan: interest-
		only payment for the first six
		months. Principal is amortized on
		a quarterly basis, and interest is
		paid on a monthly basis.
Unsecured Long-Term Loan	`－`	166,667 Effective 1 Apr 2020 to 1 Apr
from Taiwan Business Bank		2024. Four-year loan: Principal is
		repaid in monthly payments with
		monthly interest payments.
Unsecured Long-Term Loan	`－`	150,000 Effective 17 Jun 2020 to 17 Jun
from Taiwan Cooperative		2025. Five-year loan: principal is
Bank		repaid in 16 quarterly payments
		with monthly interest payments.

～45～

Unsecured Long-Term Loan	$406,250	`－`Effective 9 Feb 2023 to 8 Feb
from Taiwan Cooperative		2027. Four-year loan: principal is
Bank		repaid in 16 quarterly payments
		with monthly interest payments.
Unsecured Long-Term Loan	`－`	$240,000 Effective 7 Sep 2020 to 7 Sep
from Yuanta Commercial		2023.Three-year loan: split loan
Bank		is available. The first period
		begins at the expiration date of
		interest-only. Principal is repaid
		in 9 quarterly payments with
		monthly interest payments.
		Payments 1 to 8 are for
		NT$60,000 thousand, and the
		final payment is for NT$120,000
		thousand.
Unsecured Long-Term Loan	250,000	250,000 Effective 21 Dec 2021 to 21 Dec
from Export-Import Bank of		2027. Six-year loan: interest-only
the Republic of China		payment for 30 months. Principal
		is repaid in 8 halfly payment with
		quarterly interest payments.
Unsecured Long-Term Loan	168,750	243,750 Effective 25 Mar 2022 to 24 Mar
from Taiwan Cooperative		2026. Four-year loan: principal is
Bank		repaid in 16 quarterly payments
		with monthly interest payments.
Unsecured Long-Term Loan	770,000	770,000 Effective 11 Apr 2022 to 11 Apr
from Export-Import Bank of		2028. Six-year loan: interest-only
the Republic of China		payment for 30 months. Principal
		is repaid in 8 halfly payment with
		quarterly interest payments.
Unsecured Long-Term Loan	312,500	437,500 Effective 17 Jun 2022 to 17 Jun
from Taiwan Business Bank		2026. Four-year loan: principal is
		repaid in monthly payments with
		monthly interest payments.
Unsecured Long-Term Loan	`－`	600,000 Effective 18 Oct 2022 to 26 Aug
from HSBC Commercial		2024. Two-year loan: monthly
Bank		interest payments. Principal can
		be paid on the maturity day.
Unsecured Long-Term Loan	200,000	`－`Revolving credit for 2 years. The
from HSBC Commercial		two-year limit is based on the
Bank		initial draw-down date on the dial
		date. Monthly interest payments.
		Principal can be paid on the
		maturity day.

～46～

Unsecured Long-Term Loan from Hua Nan Bank Unsecured Long-Term Loan from Hua Nan Bank Unsecured Long-Term Loan from DBS Bank Unsecured Long-Term Loan from Land Bank of Taiwan Unsecured Long-Term Loan from Cathay United Bank Subtotal Less: Due within one year Total Interest rates	`－` $200,000 160,000 199,999 `－`	$120,000 Effective 21 Oct 2022 to 21 Oct 2025. Three-year loan: principal is repaid with monthly interest payments. Principal can be paid on the maturity day. `－`Effective 16 Oct 2023 to 16 Oct 2026. Three-year loan: principal is repaid with monthly interest payments. Principal can be paid on the maturity day. 500,000 Revolving line are two years,every loans can’t be over six months.The two-year limit is based on the initial draw-down date. The actual credit line has no maturity date. 300,000 Effective 12 Dec 2022 to12 Dec 2025. Three-year loan: principal is repaid monthly interest payments. 300,000 Revolving credit for 2 years from 12 Sep 2022 to 12 Sep 2024. 4,994,083 (1,367,001) $3,627,082 1.3905%～1.8909%
	3,167,499 (646,251)
	$2,521,248
	1.6200%～1.9926%

(18) Post-employment benefits

A. Defined contribution plan

The Company and its domestic subsidiaries adopt a defined contribution plan in accordance with the Labor Pension Act of the R.O.C. Under the Labor Pension Act, the Company and its domestic subsidiaries will make monthly contributions of no less than 6% of the employees’ monthly wages to the employees’ individual pension accounts. The Company and its domestic subsidiaries have made monthly contributions of 6% of each individual employee’s salaries or wages to employees’ pension accounts.

Expenses under the defined contribution plan for the years ended 31 December 2023 and 2022 were NT$28,610 thousand and NT$28,860 thousand, respectively.

～47～

B. Defined benefits plan

The Company and its domestic subsidiaries adopt a defined benefit plan in accordance with the Labor Standards Act of the R.O.C. The pension benefits are disbursed based on the units of service years and the average salaries in the last month of the service year. Two units per year are awarded for the first 15 years of services while one unit per year is awarded for each year after the completion of the 15th year. The total units shall not exceed 45 units. Under the Labor Standards Act, the Company and its domestic subsidiaries contribute an amount equivalent to 2% of the employees’ total salaries and wages on a monthly basis to the pension fund deposited at the Bank of Taiwan in the name of the administered pension fund committee. Before the end of each year, the Company and its domestic subsidiaries will estimate the aforementioned Labor Pension reserve accounts balance. If the balance is insufficient for the estimated payments to employees meeting the conditions of receiving labor pension within the following year, the Company will set aside the shortfall in full by end of March in the following year.

The Ministry of Labor is in charge of establishing and implementing the fund utilization plan in accordance with the regulations for revenues, expenditures, safeguard and utilization of the labor retirement fund. The pension fund is invested in-house or under a mandate, based on a passiveaggressive investment strategy for long-term profitability. The Ministry of Labor establishes checks and risk management mechanism based on the assessment of risk factors including market risk, credit risk and liquidity risk, in order to maintain adequate flexibility to achieve targeted return without over-exposure of risk. With regard to utilization of the pension fund, the minimum earnings in the annual distributions on the final financial statement shall not be less than the earnings attainable from the amounts accrued from two-year time deposits with the interest rates offered by local banks. Treasury funds can be used to cover the deficits after the approval of the competent authority. As the Company does not participate in the operation and management of the pension fund, no disclosure on the fair value of the plan assets categorized in different classes could be made in accordance with IAS 19. The Company expects to contribute NT$2,664 thousand to its defined benefit plan for the following 12 months as of 31 December 2023.

The durations of defined benefit obligation for the years ended 31 December 2023 and 2022 will expire in 10 years and 11 years, respectively.

Pension costs recognized in profit or loss are as follows:

Current period service costs Net interest on the net defined benefit liabilities Total	31 Dec 2023	31 Dec 2022
	$982 (297)	$1,051 (12)
	$685	$1,039

Reconciliations of liabilities (assets) of the defined benefit obligation and plan assets at fair value are as follows:

are as follows:
Defined benefit obligation Plan assets at fair value Net defined benefit liabilities (assets)	31 Dec 2023	31 Dec 2022
	$121,561 (139,276)	$114,615 (136,431)
	($17,175)	($21,816)

～48～

Reconciliations of liabilities (assets) of the defined benefit plan are as follows:

Defined benefit obligation	Plan assets at fair value	Net defined benefit liabilities
$123,426 1,051 901	($125,073) `－` (913)	($1,647) 1,051 (12)
125,378	(125,986)	(608)
422 (8,869) (875) `－`	`－` `－` `－` (9,290)	422 (8,869) (875) (9,290)
(9,322)	(9,290)	(18,612)
(1,441) `－`	1,441 (2,596)	`－` (2,596)
$114,615 982 1,559	($136,431) `－` (1,856)	($21,816) 982 (297)
117,156 `－` 1,694 4,838 `－`	(138,287) `－` `－` `－` (452)	(21,131) `－` 1,694 4,838 (452)
6,532	(452)	6,080
(2,126) `－`	2,126 (2,664)	`－` (2,664)
$121,562	($139,277)	($17,715)

The principal underlying actuarial assumptions are as follows:

Discount Rate Rate of future salary Increase	31 Dec 2023 1.23% 2.00%	31 Dec 2022
		1.36% 2.00%

～49～

Sensitivity analysis of each major actuarial assumption:

Sensitivity analysis of each major	actuarial assumption:	actuarial assumption:
Discount Rate increase 0.5% Discount Rate decrease 0.5% Future salary increase 0.5% Future salary decrease 0.5%	2023		2022
	Defined benefit obligations increase	Defined benefit obligations decrease	Defined benefit obligations increase	Defined benefit obligations decrease
	`－` $6,838 $6,750 `－`	$5,730 `－` `－` $5,720	`－` $7,006 $6,925 `－`	$5,491 `－` `－` $5,485

(19) Equities

A. Common stock

As of 31 December 2023 and 2022, the Company’s authorized capital was both NT$6,000,000 thousand, and issued NT$3,833,101 thousand and $3,533,101 thousand with 383,310 thousand shares and 353,310 thousand shares, each at a par value of NT$10. Each share has one voting right and a right to receive dividends.

B. Additional paid-in capital

Additional paid-in capital
Share premium Difference between consideration and carrying amount of subsidiaries acquired or disposed Increase through changes in ownership interests in subsidiaries Donated assets received Premium from merger Employee stock option Share options of convertible bonds Total	31 Dec 2023	31 Dec 2022
	$2,581,008 83,185 253,379 3,637 443,730 478,460 23,292	$348,987 72,336 `－` 3,386 443,730 114,908 23,292
	$3,866,691	$1,006,639

According to the Company Act, the capital reserve shall not be used except for making good the deficit of the company. When a company incurs no loss, it may distribute the capital reserves related to the income derived from the issuance of new shares at a premium or income from endowments received by the company. The distribution could be made in cash or in the form of dividend shares to its shareholders in proportion to the number of shares being held by each of them.

C. Retained earnings and dividend policies

According to the Company’s Articles of Incorporation, current year’s earnings, if any, shall be distributed in the following order:

(a) Payment of all taxes and dues;
(b) Offset prior years’ operation losses;
(c) Set aside 10% of the remaining amount after deducting items (a) and (b) as legal reserve, except for when accumulated legal reserve has reached total authorized capital.

～50～

(d) Set aside or reverse special reserve in accordance with law and regulations; and
(e) The distribution of the remaining portion, if any, will be recommended by the Board of Directors and resolved in the shareholders’ meeting.
(f) According to Paragraph 5, Article 240 of the Company Act, the resolution authorizing a majority vote at a meeting of Board of Directors attended by two-thirds of the total number of directors shall, in the form of the distribution of dividends and dividends or all or part of the legal reserves and capital reserves provided for in Paragraph 1, Article 241 of the Companies Act, shall be paid in cash and shall be reported to the shareholders' meeting.

The policy of dividend distribution should reflect factors such as the current and future development plan, investment environment, fund requirements, domestic and international competition as well as the interest of the shareholders. A percentage of no less than 5% of the distributable profits of the accounting period shall be distributed as shareholders' dividends annually. When the accumulated distributable profits are less than 10% of our paid-up capital, we will no longer be required to make allowances for allocation. Shareholders' dividends could be paid in the form of shares or cash. Accordingly, at least 10% of the dividends must be paid in the form of cash.

According to the Company Act, the Company needs to set aside an amount to legal reserves unless where such legal reserve amounts to the total authorized capital. The legal reserve can be used to make good the deficit of the Company. When the Company incurs no loss, it may distribute the portion of legal reserves that exceeds 25% of the paid-in capital by issuing new shares or by cash in proportion to the number of shares being held by each of the shareholders.

Following the adoption of TIFRS, the FSC on 31 March 2021 issued Order No. FinancialSupervisory-Securities-Corporate-1090150022, which sets out the following provisions for compliance:

On a public company's first-time adoption of the TIFRS, for any unrealized revaluation gains and cumulative translation adjustments (gains) recorded to shareholders’ equity that the company elects to transfer to retained earnings by application of the exemption under IFRS 1, the company shall set aside an equal amount of special reserves. Following a company’s adoption of the TIFRS for the preparation of its financial reports, when distributing distributable earnings, it shall set aside to special reserves, from the profit/loss of the current period and the undistributed earnings from the previous period. The amount should equal to “other net deductions from shareholders’ equity for the current fiscal year, provided that the company has already set aside special reserves according to the requirements in the preceding point, it shall set aside supplemental special reserve based on the difference between the amount already set aside and other net deductions from shareholders’ equity. For any subsequent reversal of other net deductions from shareholders’ equity, the amount reversed may be distributed.

As of 1 January 2023 and 2022, special reserve set aside for the first-time adoption of TIFRS amounts to $95,481 thousand. Furthermore, the Company has not reversed special reserve during the years ended 2023 and 2022 as results of the no use, disposal or reclassification of related assets.

～51～

Details of the 2023 and 2022 earnings distribution and dividends per share as approved and resolved by the Board of Directors’ meeting and shareholders’ meeting on 13 March 2024 and 15 June 2023, respectively, are as follows:

Legal reserve Special reserve Common stock -cash dividend	Appropriation of earnings	Appropriation of earnings	Dividendper share(NT$)	Dividendper share(NT$)
	2023	2022	2023	2022
	$530,198 331,830 1,916,551	$417,715 (325,374) 1,596,962	$5	$4.52

The Board of Directors’ meeting and shareholders’ meeting on 13 March 2024 and 15 June 2023 resolved to distribute $766,620 thousand and $317,979 thousand from capital surplus to shareholders in the form of cash. Shareholders are entitled to receive $2 and $0.83 per share.

Please refer to Note 6.23 for further details on employees’ compensation and remuneration to directors.

(20) Share-based payment plans

Certain employees of the Company are entitled to share-based payments as part of their remunerations. Services are provided by the employees in return for the equity instruments granted. These plans are accounted for as equity-settled share-based payments transactions.

A. Stock option plan for employees of the parent company

On July 7, 2022 and June 29, 2023, the Parent Company issue employee share options with a total number of 14,631 units and 2,058 units, respectively. Each unit entitles an optioned to subscribe for 1,000 shares of the Company’s common shares. The exercise price of the option was set at the closing price of the Company’s common share on the grant date. The optionee may exercise the options in accordance with certain schedules as prescribed by the plan starting 2 years from the grant date. Settlement upon the exercise of the options will be made through the issuance of new shares by the Parent Company.

The fair value of the share options is estimated at the grant date using a binomial option pricingmodel, taking into account the terms and conditions upon which the share options were granted.

The contractual term of each option granted is 10 years. There are no cash settlement alternatives. The Company does not have a past practice of cash settlement for these employee share options.

The relevant details of the aforementioned share-based payments plan were as follows:

Date ofgrant July 7, 2022 June 29, 2023	Total number of share options granted (in thousands) $14,631 $2,058	The number of shares that can be option each unit(share) 1,000 1,000	Exercise price of share Options ($) (Note)
			$50 $147.8

～52～

Note: The adjusted exercise price per unit of share option accordance with the regulations of Company's issuance and exercise of share-based payment policy, due to changes in common stock shares and the distribution of cash dividends.

The following table lists the inputs to the model used for the plan granted during January 1 to December 31, 2023 and 2022:

Dividend yield(%) Expected volatility(%) Risk-free interest rate(%) Expected option life(year) Option pricing model	June 29,2023 July7,2022 `－` `－` 40.36% 36.89% 1.16% 1.2462% 10 years 10 years Binomial option pricing model Binomial option pricing model

The expected life of the share options is based on historical data and current expectations and is not necessarily indicative of exercise patterns that may occur. The expected volatility reflects the assumption that the historical volatility over a period similar to the life of the options is indicative of future trends, which may also not necessarily be the actual outcome.

The further details of the Company of 2023 on the aforementioned share-based payments plan were as follows:

	2023	2023
Stock option	Number of share options outstanding (in thousands)	Average exercise price of share options($)	Fulfillment price range($)	Average remaining contract period of share options
Outstanding at beginning of period Granted Exercised Expired Outstanding at end of period Exercisable at end of period	14,631 2,058 `－` `－`	$50 147.8 `－` `－` `－` `－`	$50 147.8	8.51 years 9.49 years
	16,689
	16,689

B. Expenses incurred on share-based payment transactions plan were shown as follows:

2023

Expenses incurred on sharebased payment transactions (equity-settled share-based payments transactions) $242,076

～53～

(21) Operating revenues

Disaggregation of revenue

rating revenues saggregation of revenue
Sale of goods Timing of revenue recognition: At a point in time	2023	2022
	$42,973,997	$39,019,702
	$42,973,997	$39,019,702

(22) Lease

A. Company as a lessee (applicable to the disclosure requirement under IFRS 16)

The Company leases various properties, including real estate such as land and buildings, machinery and equipment and office equipment. The lease terms range from 1 to 10 years.

The Company’s leases effect on the financial position, financial performance and cash flows are as follow:

(a) Amounts recognized in the balance sheet
I. Right-of-use assets

The carrying amount of right-of-use assets

Land Buildings Other equipment Total	31 Dec 2023 $4,687 29,370 21,333 $55,390	31 Dec 2022 $5,393 32,642 3,871 $41,906

During the years ended of 31 December 2023, the Company’s additions to right-of-use assets amounted to $18,094 thousand.

II. Lease liabilities

Lease liabilities
Current Non-current Total	31 Dec 2023	31 Dec 2022 $13,602 29,433 $43,035
	$12,563 25,988
	$38,551

Please refer to Note 6.24(4) for the interest on lease liabilities recognized during the years ended 31 Dec 2023 and refer to Note 12.5 Liquidity Risk Management for the maturity analysis for lease liabilities as of 31 Dec 2023.

(b) Amounts recognized in the statement of profit or loss

Depreciation charge for right-of-use assets

Land Buildings Other equipments Total	2023 $878 9,381 613 $10,872	2022
		$852 8,297 1,374
		$10,523

～54～

The expenses relating to short-term leases	2023	2022
	$133	$2,244

(d) Cash outflow relating to leasing activities

During the years ended 31 December 2023, the Company’s total cash outflows for leases amounting to $28,972 thousand.

B. Operating lease commitments – Company as a lessor (applicable to the disclosure requirement in IFRS 16)

Please refer to Note 6.9 for relevant disclosure of the Company 's own occupied investment property. Leases of owned investment properties are classified as operating leases as they do not transfer substantially all the risks and rewards incidental to ownership of underlying assets.

Lease income for operating leases Income relating to fixed lease payments and variable lease payments that depend on an index or a rate	2023	2022
	$7,212	$5,230

Please refer to Note 6.9 for relevant disclosure of property, plant and equipment for operating leases under IFRS 16. For operating leases entered by the Company, the undiscounted lease payments to be received and a total of the amounts for the remaining years as of 31 December 2023 are as follow:

2023 are as follow:
Not later than one year Later than one year and not later than five years Total	31 Dec 2023	31 Dec 2022
	$6,456 10,500	$6,372 3,096
	$16,956	$9,468

(23) Summary statement of employee benefits, depreciation and amortization expenses by function:

Function Nature	2023	2023	2023		2022
	Operating costs	Operating expenses	Total amount	Operating costs	Operating expenses	Total amount
Employee benefits expense
Salaries	$62,608	$1,253,432	$1,316,040	$97,185	$933,933	$1,031,118
Labor and health insurance	$5,428	$48,203	$53,631	$8,258	$45,128	$53,386
Pension	$3,134	$26,161	$29,295	$4,463	$25,436	$29,899
Remuneration to directors	`－`	$104,566	$104,566	`－`	$76,790	$76,790
Other employee benefits expense	$6,063	$53,001	$59,064	$11,346	$45,890	$57,236
Depreciation	$26,093	$57,420	$83,513	$61,982	$48,668	$110,650
Amortization	`－`	$33,561	$33,561	`－`	$22,729	$22,729

～55～

The number of the Company’s employees were 567 and 622, including 9 and 9 non-employee directors as of December 31, 2023 and December 31, 2022, respectively.

A. The Company’s average employee benefit expenses for the years ended December 31, 2023 and 2022 were NT$2,613 thousand and NT$$1,911 thousand, respectively.
B. The Company’s average employee salary expenses for the years ended December 31, 2023 and 2022 were NT$2,358 thousand and NT$1,682 thousand, respectively.
C. The Company’s average employee salary adjustment for the years ended December 31, 2023 increased by 40.21%.
D. The Company has set up the audit committee for raplace for the supervisor, so the supervisor’s remuneration for the years ended December 31, 2023 and 2022 were NT$0 thousand an NT$0 thousand, respectively.

According to the Company’s Articles of Incorporation, no less than 3% of profit of the current year is distributable as employees’ compensation and no higher than 2% of profit of the current year is distributable as remuneration to directors. However, the company's accumulated losses shall have been covered. The Company may, by a resolution adopted by a majority vote at a meeting of Board of Directors attended by two-thirds of the total number of directors, have the profit distributed as employees’ compensation in the form of shares or in cash; and in addition thereto a report of such distribution is submitted to the shareholders’ meeting. Information on the board of directors’ resolution regarding the employees’ compensation and remuneration to directors and supervisors can be obtained from the “Market Observation Post System” on the website of the TWSE.

Based on the profit of the current year, the Company estimated the amounts of the employees’ compensation and remuneration to directors for the years ended 31 December 2023 to be NT$215,000 thousand and NT$104,296 thousand, respectively. The Company estimated the amounts of employees’ compensation and remuneration to directors and supervisors for the years ended 31 December, 2022 to be NT$178,639 thousand and NT$76,559 thousand, respectively. The aforementioned amounts were recognized as employee benefits expense. If the Board of Directors resolves to distribute employees’ compensation in the form of stocks, the number of stocks distributed was calculated based on the closing price of the day before the Board of Directors meeting. The difference between the estimation and the resolution of the stockholder’s meeting will be recognized in profit or loss in the subsequent year.

A resolution was passed at a Board of Directors meeting held on 13 March 2024 to distribute NT$215,000 thousand and NT$104,296 thousand in cash as employees’ compensation and remuneration to directors and supervisors of 2023, respectively.

～56～

No material differences exist between the estimated amount and the actual distribution of the employee compensation and remuneration to irectors and audit committee for the years ended 31 December, 2022.

(24) Non-operating income and expenses

A. Interest income

A. Interest income
Interest income from bank deposits Financial assets at amortised cost Others Total B. Other income Rental income Others Total C. Other gains and losses Gains on disposal of property, plant and equipment Foreign exchange gains (losses), net Others Total D. Finance costs Interest on bonds payable Interest on borrowings from bank Interest on lease liabilities Others Total	2023	2022
	$295,314 `－` 49	$28,342 2,813 2,167
	$295,363	$33,322
	2023	2022
	$7,212 344,282	$5,230 273,342
	$351,494	$278,572
	2023	2022 $14,937 (288,668) (31,383) ($305,114) 2022 $14,880 79,554 889 36,889 $132,212
	$16,023 78,136 (28,019)
	$66,140
	2023
	$14,880 105,562 810 12,118
	$133,370

～57～

(25) Components of other comprehensive income

For the years ended 31 December 2023

(25) Components of other comprehensive income For the years ended 31 December 2023	sive income 23
Arising during theperiod Not to be reclassified to profit or loss in subsequent periods: Remeasurements of defined benefit plans ($6,080) Unrealized gains from equity instruments investments measured at fair value through other comprehensive income 68 To be reclassified to profit or loss in subsequent periods: Exchange differences resulting from translating the financial statements of a foreign operation (396,515) Share of other comprehensive income of associates accounted for using the equity method (1,200) Total of other comprehensive income ($403,727) For the years ended 31 December 2022 Arising during theperiod Not to be reclassified to profit or loss in subsequent periods: Remeasurements of defined benefit plans $18,612 Unrealized gains from equity instruments investments measured at fair value through other comprehensive income 1,178 To be reclassified to profit or loss in subsequent periods: Exchange differences resulting from translating the financial statements of a foreign operation 410,744 Share of other comprehensive income of associates accounted for using the equity method (20) Total of other comprehensive income $430,514	Arising during theperiod	Reclassification adjustments during the period	Other comprehensive income, before tax	Income tax relating to components of other comprehensive income	Other comprehensive income, net of tax
	($6,080) 68 (396,515) (1,200)	`－` `－` `－` `－`	($6,080) 68 (396,515) (1,200)	$1,215 `－` 67,945 `－`	($4,865) 68 (328,570) (1,200)
	($403,727)	`－`	($403,727)	$69,160	($334,567)
		Reclassification adjustments during the period	Other comprehensive income, before tax	Income tax relating to components of other comprehensive income	Other comprehensive income, net of tax
	$18,612 1,178 410,744 (20)	`－` `－` `－` `－`	$18,612 1,178 410,744 (20)	($3,722) `－` (86,528) `－`	$14,890 1,178 324,216 (20)
	$430,514	`－`	$430,514	($90,250)	$340,264

～58～

(26) Income tax

The major components of income tax expense are as follows:

A. Income tax expense recognized in profit or loss

Current income tax expense: Current income tax charge Deferred tax expense (income) relating to origination and reversal of temporary differences Total income tax expense B. Income tax relating to components of other comprehensive income Deferred tax expense: Remeasurements of defined benefit plans Share of other comprehensive income of subsidiaries and associates accounted for using the equity method Income tax relating to components of other comprehensive income C. A reconciliation between income tax expense and income before tax follows: Accounting profit before tax from continuing operations At statutory income tax rate Tax effect of expenses not deductible for tax purposes Surtax on undistributed retained earnings Adjustments in respect of current income tax of prior periods Total income tax expense recognized in profit or loss	2023	2022
	$1,205,632 104,332	$815,475 (135,964)
	$1,309,964	$679,511
	2023	2022
	($1,215) (67,945)	$3,722 86,528
	($69,160)	$90,250
	$6,614,677	$4,841,772
	1,322,935 `－` 89,741 (102,712)	968,354 10,262 64,827 (363,932)
	$1,309,964	$679,511

～59～

D. Deferred tax assets (liabilities) relate to the following:

		2023
Beginning balance as of 1Jan 2023	Deferred tax income (expense) recognized in profit or loss	Deferred tax income recognized in other comprehensive income	Deferred tax (expense) charged directly to equity	Ending balance as of 31 Dec 2023
$18,743 36,887 295,975 (6,064) (1,256,587) (4,033) 437,505	$7,183 (9,974) (46,750) 91 (161,916) (725) 107,759	－－－－ $67,945 1,215 －	－－－－－－－	$25,926 26,913 249,225 (5,973) (1,350,558) (3,543) 545,264
($477,574)	($104,332)	$69,160	－	($512,746)

$1,033,111				$1,053,980
($1,510,685)				($1,566,726)

2022

			2022
Temporary differences Allowance for bad debts Allowance for losses on inventory Unrealized profit on intercompany sales Unrealized exchange (losses) Investments accounted for under the equity method Net defined benefit liabilities, noncurrent Others Deferred tax (expense)/ income Net deferred tax assets (liabilities) Reflected in balance sheet as follows: Deferred tax assets Deferred tax liabilities	Beginning balance as of 1Jan 2022	Deferred tax income (expense) recognized in profit or loss	Deferred tax income recognized in other comprehensive income	Deferred tax (expense) charged directly to equity	Ending balance as of 31 Dec 2022
	$11,627 52,499 147,360 (1,646) (1,043,495) (329) 310,696	$7,116 (15,612) 148,615 (4,418) (126,564) 18 126,809	－－－－ ($86,528) (3,722) －	－－－－－－－	$18,743 36,887 295,975 (6,064) (1,256,587) (4,033) 437,505
	($523,288)	$135,964	($90,250)	－	($477,574)

	$735,324				$1,033,111
	($1,258,612)				($1,510,685)

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E. The assessment of income tax returns

The Company’s income tax returns through 2021 have been assessed and approved by the Tax Authority.

(27) Earnings per share

Earnings per share
Basic earnings per share Profit attributable to ordinary equity holders of the Company (in thousand NT$) Assumed conversion of all dilutive potential ordinary shares Employees’ compensation Capital surplus, employee share options Diluted earnings per share Profit attributable to ordinary equity holders of the Company (in thousand NT$) Basic earnings per share Profit attributable to ordinary equity holders of the Company (in thousand NT$) Assumed conversion of all dilutive potential ordinary shares Employees’ compensation Capital surplus, employee share options Diluted earnings per share Profit attributable to ordinary equity holders of the Company (in thousand NT$)		2023	Earningsper share $14.11 $13.71
	Amount	Number of shares (shares in thousands) 376,052 723 10,270
	$5,304,713 `－` `－` $5,304,713
				$13.71
		387,045
		2022
	Amount	Number of shares (shares in thousands) 353,310 1,595 1,615 356,520
	$4,162,261 `－` `－`
	$4,162,261

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7. Related party transactions

(1) Related parties of the company

Relatedparties

AVC INTERNATIONAL (SAMOA) CO., LTD.

AVC AMERICA, INC.

MERIT TRADING CORPORATION

TONBRIDGE INVESTMENTS LTD.

JADS CORPORATION (HK) LTD.

AVC OPTICS (WUHAN) CORP.

ASIA VITAL COMPONENTS (CHINA) CO., LTD.

ASIA VITAL COMPONENTS (SHEN ZHEN) CO., LTD.

ASIA VITAL COMPONENTS (DONGGUAN) CO.,LTD.

ASIA VITAL COMPONENTS (CHENGDU) CO., LTD.

FOSITEK CORP.

AVC TECH. (VIETNAM) CO., LTD.

WUCHIDA INTERNATIONAL CO., LTD.

AVC PRECISION, CO., LTD.

(JIASHAN) D-MAX ELECTRONICS CO.,LTD.

AVC INTERNATIONAL CO., LTD.－SAMOA

Relationship

Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary

(2) Significant transactions with the related parties

A.	Sales Subsidiaries	2023	2022
		$1,270,628	$1,611,837

The sales prices and collection terms to related parties were not significantly different from those of sales to non-related parties. The sales price to other related parties was determined through mutual agreement in reference to market conditions.

B. Purchases

Purchases
Subsidiaries	2023	2022
	$34,047,996	$35,292,363

The payment terms from the related party suppliers are comparable with third party suppliers.

C. Account receivable -related parties

Account receivable-related parties
Subsidiaries	31 Dec 2023	31 Dec 2022
	$86,684	$126,935

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D. Account payable –related parties

Account payable–related parties
Subsidiaries Other receivable–related parties (a) Non-Financing : Subsidiaries	31 Dec 2023	31 Dec 2022
	$10,765,016	$8,129,728
	31 Dec 2023	31 Dec 2022
	$19,389	$53,534

E. Other receivable –related parties

(b) Financing

(b) Financing
			2023
Name of the relatedparties	Maximum Balance	Ending Balance	Actual amount provided	Interest rate range	Total interest income	Interest receivable
Subsidiaries	$153,525	`－`	`－`	3%	`－`	`－`

			2022
Name of the relatedparties	Maximum Balance	Ending Balance	Actual amount provided	Interest rate range	Total interest income	Interest receivable
Subsidiaries	$767,750	$153,550	`－`	`－`	`－`	`－`

F. Endorsement/Guarantee provided to others

Endorsement/Guarantee provided to others	others
31 Dec 2023 Subsidiaries $7,683,994 Key management personnel compensation 2023 Short-term employee benefits $158,898 Post-employment benefits 751 Total $159,649	31 Dec 2023	31 Dec 2022
	$7,683,994	$7,904,788
		2022
Short-term employee benefits Post-employment benefits Total
	$158,898 751	$107,415 752
	$159,649	$108,167

G. Key management personnel compensation

8. Assets pledged as security

The following table lists assets of the Company pledged as security:

Assetspledged for security	Carryingamount	Carryingamount
	31 Dec 2023	31 Dec 2022
Financial assets measured at amortized costs, current Land Buildings Investment property Refundable deposits Total	$1,600,297 88,235 118,393 22,792 3,500	$1,246,834 88,235 115,658 30,977 3,500
	$1,833,217	$1,485,204

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Significant contingencies and unrecognized contractual commitments
(1) Legal claim contingency ： None
(2) Others
- A. The Company guaranteed a deposit for customs in the amount of NT$2,500 thousand and NT$1,000 thousand from Bank of Taiwan and Taiwan Cooperative Bank, respectively.
- B. Please refer to Note 7.6 for Endorsement/Guarantee provided to related parties for the years ended 2023.
Losses due to major disasters None.
Significant subsequent events None.

12. Financial instruments

(1)	Categories of financial instruments Financial assets Financial assets at fair value through other comprehensive income Financial assets measured at amortized cost Cash and cash equivalents (excluding cash on hand) Financial assets measured at amortized cost Amounts receivables Subtotal Total Financial liabilities Financial liabilities at amortized cost: Short-term loans Amounts payables Corporate bonds payable (including current portion) Long-term loans (including current portion) Lease liabilities (including current portion) Total	31 Dec 2023	31 Dec 2022
		$61,881 10,893,376 1,600,297 2,396,394	$32,536 8,049,711 1,246,834 1,667,486
		14,890,067	10,964,031
		$14,951,948	$10,996,567
		31 Dec 2023	31 Dec 2022
		$2,186,205 14,165,133 2,400,000 3,167,499 38,551	$3,190,000 10,492,898 2,400,000 4,994,083 43,035
		$21,957,388	$21,120,016

(2) Financial risk management objectives and policies
The Company’s principal financial risk management objective is to manage the market risk, credit risk and liquidity risk related to its operating activates. The Company identifies measures and manages the aforementioned risks based on the Company’s policy and risk appetite.

The Company has established appropriate policies, procedures and internal controls for financial risk management. Before entering into significant transactions, due approval process by the Board of Directors must be carried out based on related protocols and internal control procedures. The Company complies with its financial risk management policies at all times.

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(3) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of the changes in market prices. Market prices comprise currency risk, interest rate risk and other price risk (such as equity risk).

In practice, it is rarely the case that a single risk variable will change independently from other risk variable, there is usually interdependencies between risk variables. However the sensitivity analysis disclosed below does not take into account the interdependencies between risk variables.

A. Foreign currency risk

The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s operating activities (when revenue or expense are denominated in a different currency from the Company’s functional currency) and the Company’s net investments in foreign subsidiaries.

The Company has certain foreign currency receivables to be denominated in the same foreign currency with certain foreign currency payables, therefore forming a natural hedge. Furthermore, as net investments in foreign subsidiaries are for strategic purposes, they are not hedged by the Company.

The foreign currency sensitivity analysis of the possible change in foreign exchange rates on the Company’s profit is performed on significant monetary items denominated in foreign currencies as at the end of the reporting period. The Company’s foreign currency risk is mainly related to the volatility in the exchange rates for USD and RMB. The information of the sensitivity analysis is as follows:

(a) When NTD strengthens/weakens against USD by 1%, the profit for 2023 and 2022 is decreased / increased by NT$6,616 thousand and NT$14,389 thousand, respectively.
(b) When NTD strengthens/weakens against RMB by 1%, the profit for 2023 and 2022 is increased / decreased by NT$120 thousand and NT$120 thousand, respectively.

B. Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to bank borrowings with fixed interest rates and variable interest rates.

The Company manages its interest rate risk by having a balanced portfolio of fixed and variable loans and borrowings and entering into interest rate swaps. Hedge accounting does not apply to these swaps as they do not qualify for it.

The interest rate sensitivity analysis is performed on items exposed to interest rate risk as at the end of the reporting period. A change of 10 basis points of interest rate in a reporting period could cause the profit for 2023 and 2022 to increased / decreased by NT$4,748 thousand and NT$$1,271 thousand, respectively.

～65～

C. Equity price risk

The fair value of the Company’s listed and unlisted equity securities are susceptible to market price risk arising from uncertainties about future values of the investment securities. The Company’s equity securities are classified as financial assets at fair value through other comprehensive income.

The equity price sensitivity analysis is based on fair value changes as at the end of the reporting period. For the years ended 31 December 2023 and 2022, a change of 5% in the price classified as equity instruments investments measured at fair value through other comprehensive income could cause the other comprehensive income to increased/decreased by NT$3,094 thousand and NT$1,627 thousand, respectively.

(4) Credit risk management

Credit risk is the risk that a counterparty will not meet its obligations under a contract, leading to a financial loss. The Company is exposed to credit risk from operating activities (primarily for accounts receivables and notes receivables) and from its financing activities, including bank deposits and other financial instruments.

Credit risk is managed by each business unit subject to the Company’s established policy, procedures and control relating to credit risk management. Credit limits are established for all counter parties based on their financial position, rating from credit rating agencies, historical experience, prevailing economic condition and the Company’s internal rating criteria etc. Certain counter parties’ credit risk will also be managed by taking credit enhancing procedures, such as requesting for prepayment or insurance.

As of 31 December 2023 and 2022, amounts receivables from top ten customers represent 51.79% and 85.75% of the total accounts receivables of the Company, respectively. The credit concentration risk of other accounts receivables is insignificant.

Credit risk from balances with banks, fixed income securities and other financial instruments is managed by the Company’s treasury in accordance with the Company’s policy. The Company only transacts with counterparties approved by the internal control procedures, which are banks and financial institutions, companies and government entities with good credit rating. Consequently, there is no significant credit risk for these counter parties.

(5) Liquidity risk management

The Company’s objective is to maintain a balance between continuity of funding and flexibility through the use of cash and cash equivalents and bank borrowings. The table below summarizes the maturity profile of the Company’s financial liabilities based on the contractual undiscounted payments and contractual maturity. The payment amount includes the contractual interest. The undiscounted payment relating to borrowings with variable interest rates is extrapolated based on the estimated interest rate yield curve as of the end of the reporting period.

～66～

Non-derivative financial liabilities

Non-derivative financial liabilities
As of 31 December 2023 Loans Corporate bonds payable Amounts payables Lease liabilities As of 31 December 2022 Loans Corporate bonds payable Amounts payables Lease liabilities	< 1year	2 to 3years	4 to 5years	> 5year	Total
	$2,901,022 $14,880 $14,156,415 $13,131 $4,629,742 $14,880 $10,476,596 $14,592	$2,188,990 $2,414,880 `－` $19,643 $2,994,917 $2,429,760 `－` $20,224	$387,912 `－` `－` $6,645 $607,723 `－` `－` $9,231	`－` `－` `－` $330 $96,743 `－` `－` $1,319	$5,477,924 $2,429,760 $14,156,415 $39,749 $8,329,125 $2,444,640 $10,476,596 $45,366

(6) Reconciliation of liabilities arising from financing activities Reconciliation of liabilities for 2023:

Short-term borrowings	Bonds payable $2,400,000 `－` `－` $2,400,000 Guarantee deposits	Long-term borrowings
$3,190,000 (1,003,795) `－`		$4,994,083 (1,826,584) `－`
$2,186,205		$3,167,499
Lease liabilities		Total liabilities from financing activities
$43,035 (28,839) 24,355	$866 560 `－`	$10,627,984 (2,858,658) 24,355
$38,551	$1,426	$7,793,681

As at 1 Jan 2022 Cash flows Non-cash changes As at 31 Dec 2022	Short-term borrowings	Short-term notespayable	Bonds payable $2,400,000 `－` `－` $2,400,000	Long-term borrowings
	$1,900,000 1,290,000 `－`	$250,000 (250,000) `－`		$3,331,111 1,662,972 `－`
	$3,190,000	`－`		$4,994,083

～67～

As at 1 Jan 2022 Cash flows Non-cash changes As at 31 Dec 2022	Lease liabilities	Guarantee deposits	Total liabilities from financing activities
	$32,901 (10,167) 20,301	$866 `－` `－`	$7,914,878 2,692,805 20,301
	$43,035	$866	$10,627,984

(7) Fair values of financial instruments
A. The methods and assumptions applied in determining the fair value of financial instruments:

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following methods and assumptions were used by the Company to measure or disclose the fair values of financial assets and financial liabilities:

(a) The carrying amount of cash and cash equivalents, accounts receivables, accounts payable and other current liabilities approximate their fair value due to their short maturities.
(b) For financial assets and liabilities traded in an active market with standard terms and conditions, their fair value is determined based on market quotation price (including listed equity securities and bonds) at the reporting date.
(c) Fair value of equity instruments without market quotations (including private placement of listed equity securities, unquoted public company and private company equity securities) are estimated using the market method valuation techniques based on parameters such as prices based on market transactions of equity instruments of identical or comparable entities and other relevant information (for example, inputs such as discount for lack of marketability, P/E ratio of similar entities and Price-Book ratio of similar entities).
(d) Fair value of debt instruments without market quotations, bank loans, bonds payable and other non-current liabilities are determined based on the counterparty prices or valuation method. The valuation method uses DCF method as a basis, and the assumptions such as the interest rate and discount rate are primarily based on relevant information of similar instrument (such as yield curves published by the Taipei Exchange, average prices for Fixed Rate Commercial Paper published by Reuters and credit risk, etc.)
B. Fair value of financial instruments measured at amortized cost

The carrying amount of financial assets and financial liabilities measured at amortized cost approximate their fair value due to their short maturities.

C. Fair value measurement hierarchy for financial instruments

Please refer to Note 12.8 for fair value measurement hierarchy for financial instruments of the Company.

～68～

(8) Fair value measurement hierarchy
A. Fair value measurement hierarchy

All asset and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, based on the lowest level input that is significant to the fair value measurement as a whole. Level 1, 2 and 3 inputs are described as follows:

Level 1 – Quoted (unadjusted) market prices in active markets for identical assets or liabilities that the entity can access at the measurement date

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

Level 3 – Unobservable inputs for the asset or liability

For assets and liabilities that are recognized in the financial statements on a recurring basis, the Company determines whether transfers have occurred between Levels in the hierarchy by reassessing categorization at the end of each reporting period.

B. Fair value measurement hierarchy of the Company’s assets and liabilities

The Company does not have assets that are measured at fair value on a non-recurring basis. Fair value measurement hierarchy of the Company’s assets and liabilities measured at fair value on a recurring basis is as follows:

ecurring basis is as follows:
As at 31 December 2023 Financial assets: Financial assets at fair value through other comprehensive income Equity instrument measured at fair value through other comprehensive income As at 31 December 2022 Financial assets: Financial assets at fair value through other comprehensive income Equity instrument measured at fair value through other comprehensive income	Level 1	Level 2	Level 3	Total
	`－` Level 1	`－` Level 2	$61,881 Level 3	$61,881 Total
	`－`	`－`	$32,536	$32,536

C. Reconciliation for fair value measurements in Level 3 is as follows:

As at 1 Jan 2023 Unrealized gains from equity instruments investments measured at fair value through other comprehensive income Acquisition Disposals As at 31 Dec 2023	Financial assets at fair value through other comprehensive income
	$32,536 2,735 30,000 (3,390)
	$62,881

～69～

As at 1 Jan 2022 Unrealized gains from equity instruments investments measured at fair value through other comprehensive income Acquisition Disposals As at 31 Dec 2022	$17,726 `－` 14,810 `－`
	$32,536

D. Information on significant unobservable inputs of fair value measurement in Level 3 fair value hierarchy

Significant unobservable inputs of fair value measurement in Level 3 fair value hierarchy are as follows:

As at 31 December 2023

follows: As at 31 December 2023
Financial assets: Financial assets at fair value through other comprehensive income Stocks As at 31 December 2022 Financial assets: Financial assets at fair value through other comprehensive income Stocks	Valuation techniques Net asset approach Valuation techniques Net asset approach	Significant unobservable inputs Discount for lack of marketability Significant unobservable inputs Discount for lack of marketability	Quantitative information 35% Quantitative information 35%	Correlation between inputs and fair value The greater degree of lack of marketability, the lower the estimated fair value is determined. Correlation between inputs and fair value The greater degree of lack of marketability, the lower the estimated fair value is determined.	Sensitivity Analysis of correlation between inputs and fair value
					1% strengthens (weakens) in the discount for lack of marketability would result in (decreased) increased in the Company’s profit or loss by $371 thousand. Sensitivity Analysis of correlation between inputs and fair value
					1% strengthens (weakens) in the discount for lack of marketability would result in (decreased) increased in the Company’s profit or loss by $222 thousand.

～70～

(9) Significant assets and liabilities denominated in foreign currencies

Information regarding the significant assets and liabilities denominated in foreign currencies is listed below:

below:
Financial assets		31 Dec 2023
	Foreign currencies (in thousands)	Foreign exchange rate	NT$ (in thousands)
	$418,357.33 $2,770.99 $579,785.12 $396,810.63	30.7050 4.3270 30.7050 30.7050 31 Dec 2022	$12,845,662 $11,990 $17,802,302 $12,184,070
Monetary items: USD RMB Investments accounted for under the equity method USD Financial liabilities
Monetary items: USD Financial assets
	Foreign currencies (in thousands)	Foreign exchange rate	NT$ (in thousands)
	$322,632.36 $2,722.36 $577,266.20 $369,486.27	30.7100 4.4080 30.7100 30.7100	$9,908,040 $12,000 $17,727,845 $11,346,923
Monetary items: USD RMB Investments accounted for under the equity method USD Financial liabilities
Monetary items: USD

The Company’s functional currency are various, and hence is not able to disclose the information of exchange gains and losses by each significant assets and liabilities denominated in foreign currencies. The foreign exchange gains (losses) were NT$78,136 thousand and NT$(288,668) thousand for the years ended December 31, 2023 and 2022, respectively.

(10) Capital management

The primary objective of the Company’s capital management is to ensure that it maintains a strong credit rating and healthy capital ratios in order to support its business and maximize shareholder value. The Company manages its capital structure and makes adjustments to it, in light of changes in economic conditions. To maintain or adjust the capital structure, the Company may adjust dividend payment to shareholders, returning capital to shareholders or issuing new shares.

～71～

13. Other disclosure

(1) Information at significant transactions and on investees
A. Financing provided to others for the years ended 31 December 2023: Please refer to Attachment 1.
B. Endorsement/Guarantee provided to others for the years ended 31 December 2023: Please refer to Attachment 2.
C. Securities held as of 31 December 2023: Please refer to Attachment 3.
D. Individual securities acquired or disposed of with accumulated amount exceeding the lowers of NT$300 million or 20% of the capital stock for the years ended 31 December 2023: None.
E. Acquisition of individual real estate with amount exceeding the lower of NT$300 million or 20% of the capital stock for the years ended 31 December 2023: None.
F. Disposal of individual real estate with amount exceeding the lower of NT$300 million or 20% of the capital stock for the years ended 31 December 2023: None.
G. Related party transactions for purchases and sales amounts exceeding the lower of NT$100 million or 20% of the capital stock for the years ended 31 December 2023: Please refer to Attachment 4.
H. Receivables from related parties with amounts exceeding the lower of NT$100 million or 20% of capital stock as of 31 December 2023: Please refer to Attachment 5.
I. Direct or indirect significant influence or control over the investees for the years ended 31 December 2023 (excluding investments in China): Please refer to Attachment 6.
J. Financial instruments and derivative transactions: None
(2) Information on investments in mainland China
A. Information on investments in mainland China ： Please refer to Attachment 7.
B. Significant transactions with the investee companies in China directly or indirectly through the third area and the relevant prices, payment terms and unrealized gains and losses:
- (a) Purchase, ending balance of related payables and their weightings: Please refer to Attachment (b )Sales, the ending balance of related receivables and their weightings: Please refer to Attachment 4.
- (c) Ending balance of endorsements/guarantees or collateral provided and the purposes: Please refer to Attachment 2.
- (d) Transactions that have significant impact on the profit or loss of current period or the financial position: None.
(3) Information of major shareholders: Please refer to Attachment 8.

～72～

ASIA VITAL COMPONENTS CO. , LTD PARENT COMPANY ONLY FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2023

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

FINANCING PROVIDED TO OTHERS

TABLE 1

TABLE 1
No (Note 1)	Financing Company	Counter-party	Financial Statement Account (Note 2)	Related Party	Maximum Balance for the Period (Note 3)	Ending Balance (Note 9)	Amount Actually Drawn	Interest Rate	Accumulated Outflow of Investment from Taiwan as of December 31, 2023	Transaction Amounts (Note 5)	Reason for Financing (Note 6)	Allowance for Doubtful Accounts	Collateral		Financing Limits for Each Borrower	Financing Company's Total Financing Amount Limits	Note
													Item	Value
0 1 2 3	ASIA VITAL COMPONENTS CO., LTD ASIA VITAL COMPONENTS (DONGGUAN) CO.,LTD. MACE TECH CORP. CHIHUNG INTERNATIONAL LTD.	WUCHIDA INTERNATIONAL CO., LTD. AVC PRECISION, CO., LTD. WUCHIDA INTERNATIONAL CO., LTD. JADS CORPORATION (HK) LIMITED	Other receivables Other receivables Other receivables Other receivables	Yes Yes Yes Yes	$153,525 (USD5,000 thousand) $432,702 (CNY100,000 thousand) $107,468 (USD3,500 thousand) $153,525 (USD5,000 thousand)	－－ $107,468 (USD3,500 thousand) $153,525 (USD5,000 thousand)	－－ $107,468 (USD3,500 thousand) $153,525 (USD5,000 thousand)	3.00% 3.00% 0.00% 0.00%	2 2 2 2	`－` `－` `－` `－`	Operating capital Operating capital Operating capital Operating capital	－－－－	－－－－	－－－－	$8,811,870 $1,316,250 $1,437,559 $2,472,294	$8,811,870 $1,316,250 $1,437,559 $2,472,294	(Note 7) (Note 8) (Note 8) (Note 8)

Note 1 ： Companies are coded as follows ：

(1) ASIA VITAL COMPONENTS Co., LTD. is coded "0".

(2) The investees are coded from "1" in the order presented in the table above.

Note 2 ： Receivables from affiliates and related parties, shareholder transactions, prepayments and temporary payments etc. are required to be disclosed in this field if they are financings provided to others.

Note 3：The maximum balance of financing provided to others for the years ended December 31, 2023.

Note 4 ： Nature of Financing are coded as follows ：

(1) Business transaction is coded "1".

(2) Short-term financing is coded "2".

Note 5 ： If nature of financing is business transaction, the amount of transaction should be disclosed.

Note 6 ： With respect to short-term financing, the reasons of financing and the purpose of use by the counter-party shall be specified, such as loan repayment, equipment acquisition or operating capital.
Note 7 ： ASIA VITAL COMPONENTS CO., LTD : The financing provided to any single entity shall not exceed 40% of the net worth. Total financing shall not exceed 40% of the net worth.
Note 8： D-MAX TECHNOLOGY CO., LTD. AND FOSITEK CORP. : The financing provided to any single entity shall not exceed 40% of the net worth. Total financing shall not exceed 40% of the net worth.

Note 9 ： If public companies, pursuant to Paragraph 1, Article 14 of Regulations Governing Loaning of Funds and Making of Endorsements / Guarantees by Public Companies, resolve each individual lending at the board meetings, the amounts resolved (before any drawing) shall be the publicly-announced balance to disclose the risk they assume; provided however,

if any repayment is made subsequently, the outstanding balance after such repayment shall be disclosed to reflect the risk adjusted. If public companies, pursuant to Paragraph 2, Article 14 of the same Regulations, authorize the chairperson by board resolution, within a certain monetary limit and a period not to exceed one year,
to give loans in instalments or to make a revolving credit line available, the amount resolved shall be the publicly-announced balance. Although repayment may be made subsequently, as drawings are likely to happen, the amount of financing resolved by the board shall be recorded as the publicly-announced balance.

Note 10 ： All the above transactions were eliminated on consolidation.

～73～

ASIA VITAL COMPONENTS CO. , LTD PARENT COMPANY ONLY FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2023

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

ENDORSEMENT/GUARANTEE PROVIDED TO OTHERS

TABLE 2

TABLE 2
(Note 1) No	Endorsement/Guarantee Provider	Guaranteed Party		Limits on Endorsement/Guarantee Amount Provided to Each Guaranteed Party (Note 3&4)	Maximum Balance for the Period (Note 12)	Ending Balance (Note 13)	Amount Actually Drawn (Note 14)	Amount of Endorsement/ Guarantee secured by Properties	Accumulated Outflow of Investment from Taiwan as of December 31, 2023	Maximum Endorsement/ Guarantee Amount Allowed (Note 3&4)	Endorsement provided by parent company to subsidiaries (Note 15)	Endorsement provided by subsidiaries to parent company (Note 15)	Carrying Amount as of December 31, 2023 (Note 15)	Note
		Name	Nature of Relationship (Note 2)
`０` `０` `０` `０` ０	ASIA VITAL COMPONENTS CO.,LTD ASIA VITAL COMPONENTS CO.,LTD ASIA VITAL COMPONENTS CO.,LTD ASIA VITAL COMPONENTS CO.,LTD ASIA VITAL COMPONENTS CO.,LTD	AVC INTERNATIONAL (SAMOA) CO., LTD. AVC PRECISION, CO., LTD. ASIA VITAL COMPONENTS (DONGGUAN) CO.,LTD. AVC OPTICS (WUHAN) CORP. AVC TECHNOLOGY (VIETNAM) COMPANY LIMITED	2 2 2 2 2	$22,029,676 $22,029,676 $22,029,676 $22,029,676 $22,029,676	$307,050 (USD10,000 thousand) $956,104 (USD10,000 thousand) (CNY150,000 thousand) $1,776,732 (USD48,000 thousand) (CNY70,000 thousand) $307,050 (USD10,000 thousand) $6,202,410 (USD202,000 thousand)	－ $432,702 (CNY100,000 thousand) $1,048,882 (USD25,000 thousand) (CNY65,000 thousand) － $6,202,410 (USD202,000 thousand)	－－ $268,276 (CNY62,000 thousand) － $4,338,737 (USD133,000 thousand) (VND203,977,489thousand)	－－－－－	－ 1.96% 4.76% － 28.15%	$33,044,515 $33,044,515 $33,044,515 $33,044,515 $33,044,515	Y Y Y Y Y	N N N N N	N Y Y Y N	(Note 3) (Note 3) (Note 3) (Note 3) (Note 3)
Note 1`：`Companies are coded as follows:

(1) ASIA VITAL COMPONENTS Co., LTD. is coded "0".

(2) The investees are coded from "1" in the order presented in the table above.

Note 2 ： The relationships between endorsement/guarantee providers and guaranteed parties are categorized into the following types :

(1) A company that has a business relationship with AVC.
(2) A subsidiary in which AVC holds directly over 50% of common equity interest.
(3) An investee in which AVC and its subsidiaries jointly hold over 50% of common equity interest.
(4) A parent company that holds directly over 90% or indirectly over 90% through a subsidiary of the company's common equity interest.
(5) A company that has provided guarantees to AVC, and vice versa, due to contractual requirements.
(6) A company in which AVC jointly invests with other shareholders, and for which AVC has provided endorsement/guarantee in proportion to its shareholding percentage.

(7) Companies in the same industry provide among themselves joint and several security for a perfomance guarantee of a sales contract for pre-construction homes pursunat to the Consumer Protection Act for each other.

Note 3 ： ASIA VITAL COMPONENTS CO.,LTD. ： The aggregate amount of endorsements/guarantees for any single entity shall not exceed 20% of the Company's net worth, and the aggregate amount of endorsements/guarantees for any single overseas associated company shall not exceed 100% of the Company's equity net worth. The overall amount of guarantees/endorsements shall not exceed 150% of the Company's equity net worth.
Note 4 ： ASIA VITAL COMPONENTS (SHEN ZHEN) CO., LTD., ASIA VITAL COMPONENTS (CHINA) CO., LTD., ASIA VITAL COMPONENTS (CHENGDU) CO., LTD., AVC OPTICS (WUHAN) CORP., ASIA VITAL COMPONENTS (DONGGUAN) CO., LTD., AVC PRECISION, CO., LTD. : The amount of guarantees/endorsements provided to any single entity shall not exceed USD200 million dollars.

FOSITEK CORP.：The aggregate amount of endorsements/guarantees for any single overseas associated company shall not exceed 100% of the Company's equity net worth. The overall amount of guarantees/endorsements shall not exceed 150% of the Company's equity net worth. Note5 ： AVC OPTICS (WUHAN) CORP., ASIA VITAL COMPONENTS (CHENGDU) CO., LTD., ASIA VITAL COMPONENTS (CHINA) CO., LTD., jointly guarnateed to ASIA VITAL COMPONENTS (SHEN ZHEN) CO., LTD., is CNY120 million dollars. The above table separately presents the resulting in double calculation of the closing balance. It is a joint endorsement guarantee for obtaining a single line of credit in substance. Note6 ： ASIA VITAL COMPONENTS (CHENGDU) CO., LTD., ASIA VITAL COMPONENTS (SHEN ZHEN) CO., LTD., jointly guarnateed to ASIA VITAL COMPONENTS (CHINA) CO., LTD., is CNY180 million dollars. The above table separately presents the resulting in double calculation of the closing balance. It is a joint endorsement guarantee for obtaining a single line of credit in substance. Note7 ： ASIA VITAL COMPONENTS (SHEN ZHEN) CO., LTD., ASIA VITAL COMPONENTS (DONGGUAN) CO.,LTD. ASIA VITAL COMPONENTS (CHINA) CO., LTD., jointly guarnateed to AVC PRECISION, CO., LTD. is CNY80 million dollars. The above table separately presents the resulting in double calculation of the closing balance. It is a joint endorsement guarantee for obtaining a single line of credit in substance. Note8 ： ASIA VITAL COMPONENTS (SHEN ZHEN) CO., LTD., AVC PRECISION, CO., LTD. ASIA VITAL COMPONENTS (CHINA) CO., LTD., jointly guarnateed to ASIA VITAL COMPONENTS (DONGGUAN) CO.,LTD. is CNY70 million dollars. The above table separately presents the resulting in double calculation of the closing balance. It is a joint endorsement guarantee for obtaining a single line of credit in substance. Note9 ： AVC PRECISION, CO., LTD. ASIA VITAL COMPONENTS (CHINA) CO., LTD., jointly guarnateed to ASIA VITAL COMPONENTS (DONGGUAN) CO.,LTD. is CNY40 million dollars. The above table separately presents the resulting in double calculation of the closing balance. It is a joint endorsement guarantee for obtaining a single line of credit in substance. Note10 ： ASIA VITAL COMPONENTS (DONGGUAN) CO.,LTD. ASIA VITAL COMPONENTS (CHINA) CO., LTD., jointly guarnateed to AVC PRECISION, CO., LTD. is CNY27million dollars. The above table separately presents the resulting in double calculation of the closing balance. It is a joint endorsement guarantee for obtaining a single line of credit in substance. Note11 ： ASIA VITAL COMPONENTS (SHEN ZHEN) CO., LTD., ASIA VITAL COMPONENTS (CHINA) CO., LTD., jointly guarnateed to AVC OPTICS (WUHAN) CORP. is CNY50 million dollars. The above table separately presents the resulting in double calculation of the closing balance. It is a joint endorsement guarantee for obtaining a single line of credit in substance. Note12 ： Maximum balance of endorsements/guarantees provided to others for current period.

Note13 ： The maximum balance for the period and ending balance represent the amounts approved by the Board Directors.

Note14 ： The company which endorsements/guarantees by AVC should disclosed the amount actually drawn within ending balance.

Note15 ： Public company provided endorsements/guarantees to subsidiary or subsidiary provided endorsements/guarantees to public company or provided endorsements/guarantees which located in CHINA area coded "Y".

～74～

ASIA VITAL COMPONENTS CO. , LTD PARENT COMPANY ONLY FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2023

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

ENDORSEMENT/GUARANTEE PROVIDED TO OTHERS

TABLE 2-1

(Note 1) No	Endorsement/Guarantee Provider	Guaranteed Party	Guaranteed Party	Limits on Endorsement/Guarantee Amount Provided to Each Guaranteed Party (Note 3&4)	Maximum Balance for the Period (Note 12)	Ending Balance (Note 13)	Amount Actually Drawn (Note 14)	Amount of Endorsement/ Guarantee secured by Properties	Accumulated Outflow of Investment from Taiwan as of December 31, 2023	Maximum Endorsement/ Guarantee Amount Allowed (Note 3&4)	Endorsement provided by parent company to subsidiaries (Note 15)	Endorsement provided by subsidiaries to parent company (Note 15)	Carrying Amount as of December 31, 2023 (Note 15)	Note
		Name	Nature of Relationship (Note 2)
1 2 2 3 3 3 3 4	AVC OPTICS (WUHAN) CORP. ASIA VITAL COMPONENTS (CHENGDU) CO., LTD. ASIA VITAL COMPONENTS (CHENGDU) CO., LTD. ASIA VITAL COMPONENTS (SHEN ZHEN) CO., LTD. ASIA VITAL COMPONENTS (SHEN ZHEN) CO., LTD. ASIA VITAL COMPONENTS (SHEN ZHEN) CO., LTD. ASIA VITAL COMPONENTS (SHEN ZHEN) CO., LTD. AVC PRECISION, CO., LTD.	ASIA VITAL COMPONENTS (SHEN ZHEN) CO., LTD. ASIA VITAL COMPONENTS (SHEN ZHEN) CO., LTD. ASIA VITAL COMPONENTS (CHINA) CO., LTD. AVC OPTICS (WUHAN) CORP. AVC PRECISION, CO., LTD. ASIA VITAL COMPONENTS (DONGGUAN) CO.,LTD. ASIA VITAL COMPONENTS (CHINA) CO., LTD. ASIA VITAL COMPONENTS (DONGGUAN) CO.,LTD.	4 4 4 4 4 4 4 3	$6,141,000 (USD200,000 thousand) $6,141,000 (USD200,000 thousand) $6,141,000 (USD200,000 thousand) $6,141,000 (USD200,000 thousand) $6,141,000 (USD200,000 thousand) $6,141,000 (USD200,000 thousand) $6,141,000 (USD200,000 thousand) $6,141,000 (USD200,000 thousand)	$519,243 (CNY120,000 thousand) $519,243 (CNY120,000 thousand) $778,864 (CNY180,000 thousand) $865,405 (CNY200,000 thousand) $768,047 (CNY177,500 thousand) $513,834 (CNY118,750 thousand) $1,644,269 (CNY380,000 thousand) $1,185,605 (CNY274,000 thousand)	$519,243 (CNY120,000 thousand) $519,243 (CNY120,000 thousand) $778,864 (CNY180,000 thousand) $865,405 (CNY200,000 thousand) $346,162 (CNY80,000 thousand) $302,892 (CNY70,000 thousand) $1,644,269 (CNY380,000 thousand) $974,663 (CNY225,250 thousand)	$358,472 (CNY82,845 thousand) $358,472 (CNY82,845 thousand) $385,996 (CNY89,206 thousand) $108,393 (CNY25,050 thousand) $227,482 (CNY52,572 thousand) $47,912 (CNY11,073 thousand) $945,258 (CNY218,454 thousand) $286,353 (CNY66,178 thousand)	－－－－－－－－	17.56% 28.30% 42.44% 17.76% 7.11% 6.22% 33.75% 88.69%	$6,141,000 (USD200,000 thousand) $6,141,000 (USD200,000 thousand) $6,141,000 (USD200,000 thousand) $6,141,000 (USD200,000 thousand) $6,141,000 (USD200,000 thousand) $6,141,000 (USD200,000 thousand) $6,141,000 (USD200,000 thousand) $6,141,000 (USD200,000 thousand)	N N N N N N N N	N N N N N N N N	Y Y Y Y Y Y Y Y	(Note 4、5) (Note 4、5) (Note 4、6) (Note 4、11) (Note 4、7) (Note 4、8) (Note 4、6) (Note 4、8、9)
Note 1`：`Companies are coded as follows: (1) ASIA VITAL COMPONENTS Co., LTD. is coded "0".

(2) The investees are coded from "1" in the order presented in the table above.

Note 2 ： The relationships between endorsement/guarantee providers and guaranteed parties are categorized into the following types :

(1) A company that has a business relationship with AVC.

(2) A subsidiary in which AVC holds directly over 50% of common equity interest.

(3) An investee in which AVC and its subsidiaries jointly hold over 50% of common equity interest.

(4) A parent company that holds directly over 90% or indirectly over 90% through a subsidiary of the company's common equity interest.

(5) A company that has provided guarantees to AVC, and vice versa, due to contractual requirements.

(6) A company in which AVC jointly invests with other shareholders, and for which AVC has provided endorsement/guarantee in proportion to its shareholding percentage.

Note 3 ： ASIA VITAL COMPONENTS CO.,LTD. ： The aggregate amount of endorsements/guarantees for any single entity shall not exceed 20% of the Company's net worth, and the aggregate amount of endorsements/guarantees for any single overseas associated company shall not exceed 100% of the Company's equity net worth. The overall amount of guarantees/endorsements shall not exceed 150% of the Company's equity net worth. Note 4 ： ASIA VITAL COMPONENTS (SHEN ZHEN) CO., LTD., ASIA VITAL COMPONENTS (CHINA) CO., LTD., ASIA VITAL COMPONENTS (CHENGDU) CO., LTD., AVC OPTICS (WUHAN) CORP., ASIA VITAL COMPONENTS (DONGGUAN) CO., LTD., AVC PRECISION, CO., LTD. : The amount of guarantees/endorsements provided to any single entity shall not exceed USD200 million dollars. FOSITEK CORP.：The aggregate amount of endorsements/guarantees for any single overseas associated company shall not exceed 100% of the Company's equity net worth. The overall amount of guarantees/endorsements shall not exceed 150% of the Company's equity net worth. Note5 ： AVC OPTICS (WUHAN) CORP., ASIA VITAL COMPONENTS (CHENGDU) CO., LTD., ASIA VITAL COMPONENTS (CHINA) CO., LTD., jointly guarnateed to ASIA VITAL COMPONENTS (SHEN ZHEN) CO., LTD., is CNY120 million dollars. The above table separately presents the resulting in double calculation of the closing balance. It is a joint endorsement guarantee for obtaining a single line of credit in substance. Note6 ： ASIA VITAL COMPONENTS (CHENGDU) CO., LTD., ASIA VITAL COMPONENTS (SHEN ZHEN) CO., LTD., jointly guarnateed to ASIA VITAL COMPONENTS (CHINA) CO., LTD., is CNY180 million dollars. The above table separately presents the resulting in double calculation of the closing balance. It is a joint endorsement guarantee for obtaining a single line of credit in substance. Note7 ： ASIA VITAL COMPONENTS (SHEN ZHEN) CO., LTD., ASIA VITAL COMPONENTS (DONGGUAN) CO.,LTD. ASIA VITAL COMPONENTS (CHINA) CO., LTD., jointly guarnateed to AVC PRECISION, CO., LTD. is CNY80 million dollars. The above table separately presents the resulting in double calculation of the closing balance. It is a joint endorsement guarantee for obtaining a single line of credit in substance. Note8 ： ASIA VITAL COMPONENTS (SHEN ZHEN) CO., LTD., AVC PRECISION, CO., LTD. ASIA VITAL COMPONENTS (CHINA) CO., LTD., jointly guarnateed to ASIA VITAL COMPONENTS (DONGGUAN) CO.,LTD. is CNY70 million dollars. The above table separately presents the resulting in double calculation of the closing balance. It is a joint endorsement guarantee for obtaining a single line of credit in substance. Note9 ： AVC PRECISION, CO., LTD. ASIA VITAL COMPONENTS (CHINA) CO., LTD., jointly guarnateed to ASIA VITAL COMPONENTS (DONGGUAN) CO.,LTD. is CNY40 million dollars. The above table separately presents the resulting in double calculation of the closing balance. It is a joint endorsement guarantee for obtaining a single line of credit in substance. Note10 ： ASIA VITAL COMPONENTS (DONGGUAN) CO.,LTD. ASIA VITAL COMPONENTS (CHINA) CO., LTD., jointly guarnateed to AVC PRECISION, CO., LTD. is CNY27million dollars. The above table separately presents the resulting in double calculation of the closing balance. It is a joint endorsement guarantee for obtaining a single line of credit in substance. Note11 ： ASIA VITAL COMPONENTS (SHEN ZHEN) CO., LTD., ASIA VITAL COMPONENTS (CHINA) CO., LTD., jointly guarnateed to AVC OPTICS (WUHAN) CORP. is CNY50 million dollars. The above table separately presents the resulting in double calculation of the closing balance. It is a joint endorsement guarantee for obtaining a single line of credit in substance. Note12 ： Maximum balance of endorsements/guarantees provided to others for current period.

Note13 ： The maximum balance for the period and ending balance represent the amounts approved by the Board Directors.

Note14 ： The company which endorsements/guarantees by AVC should disclosed the amount actually drawn within ending balance.

～75～

ASIA VITAL COMPONENTS CO. , LTD PARENT COMPANY ONLY FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2023

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

ENDORSEMENT/GUARANTEE PROVIDED TO OTHERS

TABLE 2-2

(Note 1) No	Endorsement/Guarantee Provider	Guaranteed Party	Guaranteed Party	Limits on Endorsement/Guarantee Amount Provided to Each Guaranteed Party (Note 3&4)	Maximum Balance for the Period (Note 12)	Ending Balance (Note 13)	Amount Actually Drawn (Note 14)	Amount of Endorsement/ Guarantee secured by Properties	Accumulated Outflow of Investment from Taiwan as of December 31, 2023	Maximum Endorsement/ Guarantee Amount Allowed (Note 3&4)	Endorsement provided by parent company to subsidiaries (Note 15)	Endorsement provided by subsidiaries to parent company (Note 15)	Carrying Amount as of December 31, 2023 (Note 15)	Note
		Name	Nature of Relationship (Note 2)
5 6 6 6 6 6 7	ASIA VITAL COMPONENTS (DONGGUAN) CO.,LTD. ASIA VITAL COMPONENTS (CHINA) CO., LTD. ASIA VITAL COMPONENTS (CHINA) CO., LTD. ASIA VITAL COMPONENTS (CHINA) CO., LTD. ASIA VITAL COMPONENTS (CHINA) CO., LTD. ASIA VITAL COMPONENTS (CHINA) CO., LTD. FOSITEK CORP.	AVC PRECISION, CO., LTD. AVC OPTICS (WUHAN) CORP. ASIA VITAL COMPONENTS (CHENGDU) CO., LTD. ASIA VITAL COMPONENTS (SHEN ZHEN) CO., LTD. AVC PRECISION, CO., LTD. ASIA VITAL COMPONENTS (DONGGUAN) CO.,LTD. SHENZHEN FOSITEK TELECOME CO.,LTD.	2 4 4 4 4 4 2	$6,141,000 (USD200,000 thousand) $6,141,000 (USD200,000 thousand) $6,141,000 (USD200,000 thousand) $6,141,000 (USD200,000 thousand) $6,141,000 (USD200,000 thousand) $6,141,000 (USD200,000 thousand) $4,595,498	$1,464,698 (CNY338,500 thousand) $216,351 (CNY50,000 thousand) $432,702 (CNY100,000 thousand) $1,168,297 (CNY270,000 thousand) $884,877 (CNY204,500 thousand) $686,915 (CNY158,750 thousand) $669,273 (USD7,000 thousand) (CNY105,000 thousand)	$1,042,813 (CNY241,000 thousand) $216,351 (CNY50,000 thousand) $432,702 (CNY100,000 thousand) $1,168,297 (CNY270,000 thousand) $462,992 (CNY107,000 thousand) $475,973 (CNY110,000 thousand) $546,453 (USD3,000 thousand) (CNY105,000 thousand)	$383,226 (CNY88,566 thousand) － $236,248 (CNY54,598 thousand) $849,227 (CNY196,261 thousand) $227,482 (CNY52,572 thousand) $47,912 (CNY11,073 thousand) －	$421,885 (CNY97,500 thousand) －－－－－－	31.69% 3.67% 7.33% 19.80% 7.84% 8.06% 11.89%	$6,141,000 (USD200,000 thousand) $6,141,000 (USD200,000 thousand) $6,141,000 (USD200,000 thousand) $6,141,000 (USD200,000 thousand) $6,141,000 (USD200,000 thousand) $6,141,000 (USD200,000 thousand) $6,893,247	N N N N N N N	N N N N N N N	Y Y Y Y Y Y Y	(Note 4、7、10) (Note 4、11) (Note 4) (Note 4、5) (Note 4、7、10) (Note 4、8、9) (Note 4)
Note 1`：`Companies are coded as follows: (1) ASIA VITAL COMPONENTS Co., LTD. is coded "0".

(2) The investees are coded from "1" in the order presented in the table above.
Note 2 ： The relationships between endorsement/guarantee providers and guaranteed parties are categorized into the following types :
(1) A company that has a business relationship with AVC.
(2) A subsidiary in which AVC holds directly over 50% of common equity interest.
(3) An investee in which AVC and its subsidiaries jointly hold over 50% of common equity interest.
(4) A parent company that holds directly over 90% or indirectly over 90% through a subsidiary of the company's common equity interest.
(5) A company that has provided guarantees to AVC, and vice versa, due to contractual requirements.
(6) A company in which AVC jointly invests with other shareholders, and for which AVC has provided endorsement/guarantee in proportion to its shareholding percentage.
(7) Companies in the same industry provide among themselves joint and several security for a perfomance guarantee of a sales contract for pre-construction homes pursunat to the Consumer Protection Act for each other.
Note 3 ： ASIA VITAL COMPONENTS CO.,LTD. ： The aggregate amount of endorsements/guarantees for any single entity shall not exceed 20% of the Company's net worth, and the aggregate amount of endorsements/guarantees for any single overseas associated company shall not exceed 100% of the Company's equity net worth. The overall amount of guarantees/endorsements shall not exceed 150% of the Company's equity net worth.
Note 4 ： ASIA VITAL COMPONENTS (SHEN ZHEN) CO., LTD., ASIA VITAL COMPONENTS (CHINA) CO., LTD., ASIA VITAL COMPONENTS (CHENGDU) CO., LTD., AVC OPTICS (WUHAN) CORP., ASIA VITAL COMPONENTS (DONGGUAN) CO., LTD., AVC PRECISION, CO., LTD. : The amount of guarantees/endorsements provided to any single entity shall not exceed USD200 million dollars.
FOSITEK CORP.：The aggregate amount of endorsements/guarantees for any single overseas associated company shall not exceed 100% of the Company's equity net worth. The overall amount of guarantees/endorsements shall not exceed 150% of the Company's equity net worth.
Note5 ： AVC OPTICS (WUHAN) CORP., ASIA VITAL COMPONENTS (CHENGDU) CO., LTD., ASIA VITAL COMPONENTS (CHINA) CO., LTD., jointly guarnateed to ASIA VITAL COMPONENTS (SHEN ZHEN) CO., LTD., is CNY120 million dollars. The above table separately presents the resulting in double calculation of the closing balance. It is a joint endorsement guarantee for obtaining a single line of credit in substance.
Note6 ： ASIA VITAL COMPONENTS (CHENGDU) CO., LTD., ASIA VITAL COMPONENTS (SHEN ZHEN) CO., LTD., jointly guarnateed to ASIA VITAL COMPONENTS (CHINA) CO., LTD., is CNY180 million dollars. The above table separately presents the resulting in double calculation of the closing balance. It is a joint endorsement guarantee for obtaining a single line of credit in substance. Note7 ： ASIA VITAL COMPONENTS (SHEN ZHEN) CO., LTD., ASIA VITAL COMPONENTS (DONGGUAN) CO.,LTD. ASIA VITAL COMPONENTS (CHINA) CO., LTD., jointly guarnateed to AVC PRECISION, CO., LTD. is CNY80 million dollars. The above table separately presents the resulting in double calculation of the closing balance. It is a joint endorsement guarantee for obtaining a single line of credit in substance. Note8 ： ASIA VITAL COMPONENTS (SHEN ZHEN) CO., LTD., AVC PRECISION, CO., LTD. ASIA VITAL COMPONENTS (CHINA) CO., LTD., jointly guarnateed to ASIA VITAL COMPONENTS (DONGGUAN) CO.,LTD. is CNY70 million dollars. The above table separately presents the resulting in double calculation of the closing balance. It is a joint endorsement guarantee for obtaining a single line of credit in substance.
Note9 ： AVC PRECISION, CO., LTD. ASIA VITAL COMPONENTS (CHINA) CO., LTD., jointly guarnateed to ASIA VITAL COMPONENTS (DONGGUAN) CO.,LTD. is CNY40 million dollars. The above table separately presents the resulting in double calculation of the closing balance. It is a joint endorsement guarantee for obtaining a single line of credit in substance. Note10 ： ASIA VITAL COMPONENTS (DONGGUAN) CO.,LTD. ASIA VITAL COMPONENTS (CHINA) CO., LTD., jointly guarnateed to AVC PRECISION, CO., LTD. is CNY27million dollars. The above table separately presents the resulting in double calculation of the closing balance. It is a joint endorsement guarantee for obtaining a single line of credit in substance.
Note11 ： ASIA VITAL COMPONENTS (SHEN ZHEN) CO., LTD., ASIA VITAL COMPONENTS (CHINA) CO., LTD., jointly guarnateed to AVC OPTICS (WUHAN) CORP. is CNY50 million dollars. The above table separately presents the resulting in double calculation of the closing balance. It is a joint endorsement guarantee for obtaining a single line of credit in substance.

Note12 ： Maximum balance of endorsements/guarantees provided to others for current period.

Note13 ： The maximum balance for the period and ending balance represent the amounts approved by the Board Directors.

Note14 ： The company which endorsements/guarantees by AVC should disclosed the amount actually drawn within ending balance.

～76～

ASIA VITAL COMPONENTS CO. , LTD PARENT COMPANY ONLY FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2023

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

MARKETABLE SECURITIES HELD (EXCLUDING INVESTMENTS IN SUBSIDIARIES, ASSOCIATES AND JOINTLY CONTROLLED ENTITIES)

TABLE 3

TABLE 3
Name of Held Company	Type and name of Marketable Securities	Relationship with the Company	Financial Statement Account	December 31, 2023
				Shares (In Thousands)	Carrying Amount	Percentage of Ownership	Market Value
ASIA VITAL COMPONENTS CO.,LTD MERIT TRADING CORPORATION MACE TECH CORP. ASIA VITAL COMPONENTS (CHINA) CO., LTD.	RTR-TECH TECHNOLOGY CO., LTD. APTOS TECHNOLOGY INC. UBIQCONN TECHNOLOGY, INC. WK TECHNOLOGY FUND IX II LTD. FURUKAWA ELECTRIC (SHENZHEN) CO., LTD. SHENG-SHING WORLDWIDE CORP. Not listed (OTC) stocks SHENZHEN TIMELINK TECHNOLOGY CO., LTD. Not listed (OTC) stocks Not listed (OTC) stocks Not listed (OTC) stocks	`－` `－` `－` `－` Other related parties `－` `－`	Financial assets measured at fair value through other comprehensive income, noncurrent Financial assets measured at fair value through other comprehensive income, noncurrent Financial assets measured at fair value through other comprehensive income, noncurrent Financial assets measured at fair value through other comprehensive income, noncurrent Financial assets measured at fair value through other comprehensive income, noncurrent Financial assets measured at fair value through other comprehensive income, noncurrent Financial assets measured at fair value through other comprehensive income, noncurrent	14,000 450 4,140 3,000 (Note) 703 2,273	－－ $31,881 $30,000 $92,913 $9,516 －	19.42% 0.74% 5.52% 2.67% 9.06% 14.06% 10.80%	－－ $31,881 $30,000 $92,913 $9,516 `－`

Note ： None amount of shares is issued publicly by Limited Company.

～77～

ASIA VITAL COMPONENTS CO. , LTD PARENT COMPANY ONLY FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2023

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified) RELATED PARTY TRANSACTIONS WITH PURCHASE OR SALES AMOUNT OF AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL

TABLE 4

TABLE 4
Company Name	Related Party	Nature of Relationships	Transaction Details				Abnormal Transaction		Accumulated Outflow of Investment from Taiwan as of December 31, 2023		Note
			Purchases/ Sales	Amount	Percentage to Total	Collection/ Payment Terms	Unit Price	Collection/ Payment Terms	Ending Balance	Percentage to Total
ASIA VITAL COMPONENTS CO., LTD ASIA VITAL COMPONENTS CO., LTD ASIA VITAL COMPONENTS CO., LTD ASIA VITAL COMPONENTS CO., LTD ASIA VITAL COMPONENTS CO., LTD ASIA VITAL COMPONENTS CO., LTD ASIA VITAL COMPONENTS CO., LTD ASIA VITAL COMPONENTS CO., LTD ASIA VITAL COMPONENTS CO., LTD	ASIA VITAL COMPONENTS (CHENGDU) CO., LTD. ASIA VITAL COMPONENTS (SHEN ZHEN) CO., LTD. AVC OPTICS (WUHAN) CORP. ASIA VITAL COMPONENTS (CHINA) CO., LTD. ASIA VITAL COMPONENTS (DONGGUAN) CO.,LTD. (JIASHAN) D-MAX ELECTRONICS CO.,LTD. WUCHIDA INTERNATIONAL CO., LTD. AVC TECH. (VIETNAM) CO., LTD. AVC AMERICA, INC.	Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary	(Purchases) (Purchases) (Purchases) (Purchases) (Purchases) (Purchases) (Purchases) (Purchases) Sales	($1,762,704) ($11,547,288) ($1,142,051) ($765,062) ($14,811,355) ($828,694) ($376,619) ($2,768,404) $1,193,381	(5%) (33%) (3%) (2%) (42%) (2%) (1%) (8%) 3%	Net 60 days from the end of the month of when invoice is issued by T/T Net 30 days from the end of the month of when invoice is issued by T/T Net 30 days from the end of the month of when invoice is issued by T/T Net 30 days from the end of the month of when invoice is issued by T/T Net 60 days from the end of the month of when invoice is issued by T/T Net 90 days from the end of the month of when invoice is issued by T/T Net 90 days from the end of the month of when invoice is issued by T/T Net 90 days from the end of the month of when invoice is issued by T/T Net 60 days from the end of the month of when invoice is issued by T/T	N/A N/A N/A N/A N/A N/A N/A N/A N/A	N/A N/A N/A N/A N/A N/A N/A N/A N/A	($521,137) ($5,138,010) ($341,898) ($164,403) ($3,961,638) ($392,125) － ($245,169) $77,395	(5%) (45%) (3%) (1%) (35%) (3%) － (2%) 4%

( Continued )

～78～

ASIA VITAL COMPONENTS CO. , LTD PARENT COMPANY ONLY FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2023

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

RELATED PARTY TRANSACTIONS WITH PURCHASE OR SALES AMOUNT OF AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL

TABLE 4-1

TABLE 4-1
Company Name	Related Party	Nature of Relationships	Transaction Details				Abnormal Transaction		Accumulated Outflow of Investment from Taiwan as of December 31, 2023		Note
			Purchases/ Sales	Amount	Percentage to Total	Collection/ Payment Terms	Unit Price	Collection/ Payment Terms	Ending Balance	Percentage to Total
ASIA VITAL COMPONENTS (CHENGDU) CO., LTD. ASIA VITAL COMPONENTS (SHEN ZHEN) CO., LTD. AVC OPTICS (WUHAN) CORP. ASIA VITAL COMPONENTS (CHINA) CO., LTD. ASIA VITAL COMPONENTS (DONGGUAN) CO.,LTD. (JIASHAN) D-MAX ELECTRONICS CO.,LTD. WUCHIDA INTERNATIONAL CO., LTD. AVC TECH. (VIETNAM) CO., LTD. AVC AMERICA, INC.	ASIA VITAL COMPONENTS CO., LTD ASIA VITAL COMPONENTS CO., LTD ASIA VITAL COMPONENTS CO., LTD ASIA VITAL COMPONENTS CO., LTD ASIA VITAL COMPONENTS CO., LTD ASIA VITAL COMPONENTS CO., LTD ASIA VITAL COMPONENTS CO., LTD ASIA VITAL COMPONENTS CO., LTD ASIA VITAL COMPONENTS CO., LTD	The company's ultimate parent The company's ultimate parent The company's ultimate parent The company's ultimate parent The company's ultimate parent The company's ultimate parent The company's ultimate parent The company's ultimate parent The company's ultimate parent	Sales Sales Sales Sales Sales Sales Sales Sales (Purchases)	$1,762,704 $11,547,288 $1,142,051 $765,062 $14,811,355 $828,694 $376,619 $2,768,404 ($1,193,381)	72% 96% 31% 8% 92% 47% 94% 98% (98%)	Net 90 days from the end of the month of when invoice is issued by T/T Net 90 days from the end of the month of when invoice is issued by T/T Net 90 days from the end of the month of when invoice is issued by T/T Net 60 days from the end of the month of when invoice is issued by T/T Net 60 days from the end of the month of when invoice is issued by T/T Net 30 days from the end of the month of when invoice is issued by T/T Net 30 days from the end of the month of when invoice is issued by T/T Net 30 days from the end of the month of when invoice is issued by T/T Net 60 days from the end of the month of when invoice is issued by T/T	N/A N/A N/A N/A N/A N/A N/A N/A N/A	N/A N/A N/A N/A N/A N/A N/A N/A N/A	$521,137 $5,138,010 $341,898 $164,403 $3,961,638 $392,125 － $245,169 ($77,395)	80% 95% 31% 7% 89% 91% － 70% (97%)

～79～

ASIA VITAL COMPONENTS CO. , LTD PARENT COMPANY ONLY FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2023

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

RECEIVABLES FROM RELATED PARTIES OF AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL

TABLE 5

TABLE 5
Company Name	Related Party	Nature of Relationships	Ending Balance (Note 3)	Turnover Ratio (times)	Overdue		Amounts Received in Subsequent Periods	Allowance for Doubtful Accounts
					Amount	Action Taken
ASIA VITAL COMPONENTS (CHINA) CO., LTD. ASIA VITAL COMPONENTS (SHEN ZHEN) CO., LTD. ASIA VITAL COMPONENTS (CHENGDU) CO., LTD. AVC OPTICS (WUHAN) CORP. ASIA VITAL COMPONENTS (DONGGUAN) CO.,LTD. AVC TECH. (VIETNAM) CO., LTD. (JIASHAN) D-MAX ELECTRONICS CO.,LTD.	ASIA VITAL COMPONENTS CO., LTD ASIA VITAL COMPONENTS CO., LTD ASIA VITAL COMPONENTS CO., LTD ASIA VITAL COMPONENTS CO., LTD ASIA VITAL COMPONENTS CO., LTD ASIA VITAL COMPONENTS CO., LTD ASIA VITAL COMPONENTS CO., LTD	The company's ultimate parent The company's ultimate parent The company's ultimate parent The company's ultimate parent The company's ultimate parent The company's ultimate parent The company's ultimate parent	$164,403 $5,138,010 $521,137 $341,898 $3,961,638 $245,169 $392,125	3.83 2.68 3.51 2.60 4.26 15.92 4.23	－－－－－－－	(Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2)	$97,565 $2,159,835 $275,423 $310,136 $2,609,803 $245,169 $233,610	(Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 1)

Note 1 ： The preparation of consolidated statements does not require recording the allowance for doubtful accounts.

Note 2 ： The Company balances its accounts regularly and writes off receivables against payables.

Note 3 ： All the above transactions were eliminated on consolidation.

～80～

ASIA VITAL COMPONENTS CO. , LTD PARENT COMPANY ONLY FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2023

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

NAMES, LOCATIONS AND RELATED INFORMATION OF INVESTEE COMPANIES (Not including investment in Mainland China)

TABLE 6

TABLE 6
Investor Company	Investee Company	Address	Main businesses and products	Initial Investment		Investment as of December 31, 2023			Accumulated Outflow of Investment from Taiwan as of December 31, 2023	Investment income (loss) recognized	Note
				Ending balance	Beginning balance	Number of shares (thousand)	Percentage of ownership (%)	Carrying amount
ASIA VITAL COMPONENTS CO., LTD	AVC INTERNATIONAL CO., LTD.`－`B.V.I. CHIHUNG INTERNATIONAL LTD. MERIT TRADING CORPORATION RAYNEY INTERNATIONAL LTD. AVC AMERICA, INC. AVC INTERNATIONAL (SAMOA) CO., LTD. JADS CORPORATION (HK) LTD. ZIMAG TECHNOLOGY CO., INC. AVC INTERNATIONAL CO., LTD.`－`SAMOA FOSITEK CORP. HUNG YE INVESTMENT CO., LTD. D-MAX TECHNOLOGY CO., LTD. AVC EUROPE TECHNOLOGY GMBH AVC TECHNOLOGY (VIETNAM) COMPANY LIMITED PARAGON SEMICONDUCTOR LIGHTING TECHNOLOGY CO., LTD.	British Virgin Islands Samoa Samoa Samoa USA Samoa Hongkong Taoyuan City, Taiwan Samoa New Taipei City, Taiwan New Taipei City, Taiwan New Taipei City, Taiwan Germany Vietnam New Taipei City, Taiwan	Investment holding Investment holding Trade Trade Trade Trade Trade Trade Investment holding Trade Sales and manufacture of electronic Manufacture of industrial lighting equipment Manufacture, process and sales of molds and aluminum products Sales and manufacture of electronic parts, computers and related products Sales and manufacture of electronic parts and related products	$5,147,294 $1,040,647 $29,088 $78,950 $91,903 $10,157 $327 $45,000 $32,120 $209,829 $60,000 $201,035 $9,050 $1,419,917 $50,000	$5,147,294 $1,040,647 $29,088 $78,950 $91,903 $10,157 $327 $45,000 $32,120 $211,099 $60,000 $201,035 $9,050 $1,419,917 －	16 32,770 892 2,400 41 300 10 2,700 1,000 11,567 6,000 28,500 250 (Note) 5,000	100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 9.53% 100.00% 16.87% 100.00% 100.00% 100.00% 100.00% 40.00%	$11,043,156 $6,154,608 $93,664 $197,047 $229,735 $11,201 $28,913 $50,498 $35,121 $778,098 $5,398 $359,721 $8,857 $1,076,046 $43,906	$1,548,545 $656,011 ($38,978) $68,225 $458 ($1,753) $24 $31,847 ($96,157) $627,958 $17 $73,219 $82 $139,276 ($28,049)	$1,077,779 $648,801 ($36,602) $68,225 $458 $3,901 $2,380 $2,922 ($96,157) $118,207 $17 $66,885 $82 ($250,368) ($4,896)

Note ： None amount of shares is issued publicly by Limited Company.

( Continued )

～81～

ASIA VITAL COMPONENTS CO. , LTD PARENT COMPANY ONLY FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2023

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

NAMES, LOCATIONS AND RELATED INFORMATION OF INVESTEE COMPANIES (Not including investment in Mainland China)

TABLE 6-1

TABLE 6-1
Investor Company	Investee Company	Address	Main businesses and products	Initial Investment		Investment as of December 31, 2023			Accumulated Outflow of Investment from Taiwan as of December 31, 2023	Investment income (loss) recognized	Note
				Ending balance	Beginning balance	Number of shares (thousand)	Percentage of ownership (%)	Carrying amount
AVC INTERNATIONAL CO., LTD.`－`B.V.I. CHIHUNG INTERNATIONAL LTD. HUNG YE INVESTMENT CO., LTD. D-MAX TECHNOLOGY CO., LTD. WUCHIDA INTERNATIONAL CO., LTD. FOSITEK CORP. FOSITEK CORP.	MACE TECH CORP. AVC OPTICS CORP. TONBRIDGE INVESTMENTS LTD. (Note 1) KEY APPLICATION TECHNOLOGY CO., LTD. WUCHIDA INTERNATIONAL CO., LTD. D-MAX INTERNATIONAL CO., LIMITED MARKETHILL INVESTMENTS LTD. FOSITEK (VIET NAM) COMPANY LIMITED	British Virgin Islands Cayman Islands Samoa Hsinchu City, Taiwan Samoa Hongkong Samoa Vietnam	Trade Investment holding Investment holding Investment holding Investment holding Investment holding Sales and manufacture of electronic products Sales and manufacture of rails and shafts	$319,776 $3,128,775 － $15,300 $132,004 $132,004 $949,097 $59,430	$319,776 $3,128,775 － $15,300 $132,004 $132,004 $949,097 －	11,068 100,000 － 1,115 4,000 4,000 33,200 (Note 2)	100.00% 100.00% － 16.31% 100.00% 100.00% 100.00% 100.00%	$3,593,899 $2,956,766 － `－` $289,022 $410,781 $3,112,355 $62,444	$494,174 $1,280 － $848 $89,640 $87,146 $684,425 ($586)	$494,174 $1,280 －－ $89,640 $88,163 $674,760 ($586)

Note 1 ： TONBRIDGE INVESTMENTS LTD. has been cancelled the registration in January 2023.

Note 2 ： None amount of shares is issued publicly by Limited Company.

～82～

ASIA VITAL COMPONENTS CO. , LTD PARENT COMPANY ONLY FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2023

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified) INFORMATION ON INVESTMENT IN MAINLAND CHINA

TABLE 7

TABLE 7
Investor Company	Investee Company	Main Businesses and Products	Total Amount of Paid-in Capital	Method of Investment (Note 1)	Accumulated Outflow of Investment from Taiwan as of January 1, 2023	Investment Flows		Accumulated Outflow of Investment from Taiwan as of December 31, 2023	Percentage of Ownership (Direct or Indirect Investment)	Profits/ Losses of the Investee Company	Share of Profits/Losses	Carrying Amount as of December 31, 2023	Accumulated Inward Remittance of Earnings as of December 31, 2023
						Outflow	Inflow
ASIA VITAL COMPONENTS CO. , LTD	ASIA VITAL COMPONENTS (SHEN ZHEN) CO., LTD.	Sales and manufacture of computers related products and computer cooling fans	$642,719	(2) AVC INTERNATIONAL CO., LTD.`－`B.V.I.	$642,719	－	－	$642,719	100.00%	$873,769	$873,769	$4,871,841	－
ASIA VITAL COMPONENTS CO. , LTD	FURUKAWA AVC ELECTRONICS (SUZHOU) CO., LTD.	Sales and manufacture of reflow machines, solder paste printers and notebook thermal modules	$267,247	(2) RAYNEY INTERNATIONAL LTD.	$54,176	－	－	$54,176	30.00%	$226,170	$67,851	$160,502	－
ASIA VITAL COMPONENTS CO. , LTD	ASIA VITAL COMPONENTS (DONGGUAN) CO.,LTD.	Sales and manufacture of computers, electronic products and related parts	$514,105	(2) AVC INTERNATIONAL CO., LTD.`－`B.V.I.	$319,776	－	－	$319,776	100.00%	$497,357	$497,357	$3,290,625	－
ASIA VITAL COMPONENTS CO. , LTD	ASIA VITAL COMPONENTS (CHINA) CO., LTD.	Sales and manufacture of computers related products and computer cooling fans	$879,291	(2) CHIHUNG INTERNATIONAL LTD.	$879,291	－	－	$879,291	100.00%	$654,049	$654,049	$5,901,912	－
ASIA VITAL COMPONENTS CO. , LTD	FURUKAWA ELECTRIC (SHENZHEN) CO., LTD.	Sales and manufacture of automobile parts	$321,060	(2) MERIT TRADING CORPORATION	$29,088	－	－	$29,088	9.06%	($63,173)	－	$92,913	－
ASIA VITAL COMPONENTS CO. , LTD	ASIA VITAL COMPONENTS (CHENGDU) CO., LTD.	Sales and manufacture of computers, related parts and accessories	$1,055,897	(2) AVC INTERNATIONAL CO., LTD.`－`B.V.I.	$1,055,897	－	－	$1,055,897	100.00%	$166,840	$166,840	$1,835,035	－
D-MAX TECHNOLOGY CO., LTD.	(JIASHAN)D-MAX ELECTRONICS CO.,LTD.	Sales and manufacture of electronic and photographic equipment	$132,004	(2) WUCHIDA INTERNATIONAL CO., LTD.	$132,004	－	－	$132,004	100.00%	$87,142	$87,142	$410,403	－
ASIA VITAL COMPONENTS CO. , LTD	AVC OPTICS (WUHAN) CORP.	Sales and manufacture of computers related products and computer cooling fans	$3,128,775	(2) AVC INTERNATIONAL CO., LTD.`－`B.V.I.	$3,128,775	－	－	$3,128,775	100.00%	$1,280	$1,280	$2,956,754	－
FOSITEK CORP.	SHENZHEN FOSITEK TELECOME CO.,LTD.	Sales and manufacture of rails, shafts and metal stamping tooling	$846,331	(2) MARKETHILL INVESTMENTS LTD.	$846,331	－	－	$846,331	100.00%	$680,535	$680,535	$3,106,303	－

Accumulated Outflow of Investment from Taiwan to Mainland China as of December 31, 2023	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
(US$230,093,010) $7,088,057	(US$260,750,828) $8,006,354	(Note 3)

Note 1 ： The methods for investment in Mainland China are categorized into the following three types. Please specify the type.

(1) Direct investment in Mainland China.

(2) Indirectly investment in Mainland China through companies registered in the third area (Please specify the name of the company in third region).

(3) Others.

Note 2 ： The table is expressed in thousands of New Taiwan Dollars.

Note 3 ： The Company has obtained the certificate of being qualified for operating headquarters, issued by the Industrial Development Bureau, MOEA, the ceiling amount of the investment in Mainland China is not applicable to the Company.

Note 4 ： All the above transactions were eliminated on consolidation.

～83～

ASIA VITAL COMPONENTS CO. , LTD PARENT COMPANY ONLY FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2023

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

Information of major shareholders

TABLE 8

TABLE 8
Shares Name	Number of shares (thousand)	Percentage of ownership
FURUKAWA ELECTRIC CO., LTD.	52,945	13.81%
The new labor retirement fund of discretionary nomura investment account for the first time in 2022.	30,818	8.04%
Fubon Life Insurance Co., Ltd.	21,261	5.54%

Note 1 ： The main shareholder information in this form is calculated by the collection company, on the last business day of each quarter, that the total information of the common

shares and special shares held by shareholders of the company that have completed the non-entity login delivery (including the storage shares) of the company amounts

to more than 5%. As for the share capital recorded in the Company's financial report and the number of unregistered shares actually completed by the Company, there

may be differences or differences due to the basis for the calculation of the company.

Note 2 ： The opening of the information, if the shareholders will share the shares to the trust, is disclosed to the trustees to open a trust account of the individual sub-accounts.

As for the shareholders to handle the internal ownership declaration of more than 10% of the shares in accordance with the Securities Exchange Act, the shareholding of the

shareholders includes their own shareholding plus their delivery of the trust and the use of decision-making rights for the trust property, etc., the relevant insider equity

declaration information can be found in the Market Observation Post System.

～84～

ASIA VITAL COMPONENTS CO., LTD

1. STATEMENT OF CASH AND CASH EQUIVALENTS

FOR THE YEARS ENDED DECEMBER 31, 2023

(In Thousands of New Taiwan Dollars)

==> picture [523 x 464] intentionally omitted <==

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

Item Description Amount Note
Petty Cash $15
Cash on hand $15
Bank deposit Exchange rate
Time deposits of foreign currency CNY 2,650 thousand 11,467 4.3270
Time deposits of foreign currency USD 153,000 thousand 4,697,865 30.7050
Checking accounts of NTD 2,078,902 1.0000
Checking accounts of foreign currency USD 131,623 thousand 4,041,474 30.7050
Checking accounts of foreign currency GBP 435 thousand 17,026 39.1500
Checking accounts of foreign currency CNY 119 thousand 515 4.3270
Checking accounts of foreign currency EUR 1,266 thousand 43,030 33.9800
Checking accounts of foreign currency KRW 19,009 thousand 454 0.0239
Checking accounts of foreign currency HKD 672 thousand 2,640 3.9290
Checking accounts of foreign currency SGD 0 thousand 3 23.2900
Checking accounts of foreign currency VND 136 thousand － 0.0013
Subtotal 10,893,376
Total $10,893,391
----- End of picture text -----

～ 85 ～

ASIA VITAL COMPONENTS CO., LTD

STATEMENT OF FINANCIAL ASSETS MEASURED AT AMORTIZED COSTS, CURRENT

FOR THE YEARS ENDED DECEMBER 31, 2023

(In Thousands of New Taiwan Dollars)

==> picture [524 x 112] intentionally omitted <==

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

Item Description Amount Note
Exchange rate
Pledged deposits USD 52,118 1,600,297 30.7050
----- End of picture text -----

～ 86 ～

ASIA VITAL COMPONENTS CO., LTD

3. STATEMENT OF ACCOUNTS RECEIVABLE, NET

FOR THE YEARS ENDED DECEMBER 31, 2023

==> picture [526 x 215] intentionally omitted <==

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

(In Thousands of New Taiwan Dollars)
Client Name Description Amount Note
Company A $348,101 The allowance loss is assessed on the
Company B 275,314 basis of the possibility of recovery
Company C 264,666
Company D 201,222
Company E 182,148
Company F 177,489
Others (Note) 405,102
Total 1,854,042
(Less): loss allowance (123,099)
Net $1,730,943
----- End of picture text -----

Note: The amount of each item in others does not exceed 5% of the account balance.

ASIA VITAL COMPONENTS CO., LTD

4. STATEMENT OF ACCOUNTS RECEIVABLE - RELATED PARTIES, NET

FOR THE YEARS ENDED DECEMBER 31, 2023

Client Name Description AVC AMERICA, INC. AVC OPTICS (WUHAN) CORP. ASIA VITAL COMPONENTS (DONGGUAN) CO.,LTD. Total (Less): loss allowance Net	(In Thousands of New Taiwan Dollars) Amount Note $77,395 The allowance loss is assessed on the 5,370 basis of the possibility of recovery 3,919 86,684 － $86,684

～ 87 ～

ASIA VITAL COMPONENTS CO., LTD

5. STATEMENT OF OTHER RECEIVABLE

FOR THE YEARS ENDED DECEMBER 31, 2023

==> picture [522 x 160] intentionally omitted <==

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

(In Thousands of New Taiwan Dollars)
Client Name Description Amount Note
Company F Transferred to other receivable $410,203 The allowance loss is
Company G Transferred to other receivable 48,964 assessed on the basis of
Others(Note) 107,291 the possibility of recovery
Tax refund receivable Tax －
Total 566,458
(Less): loss allowance (7,080)
Net $559,378
----- End of picture text -----

Note: The amount of each item in others does not exceed 5% of the account balance.

ASIA VITAL COMPONENTS CO., LTD

6. STATEMENT OF OTHER RECEIVABLE - RELATED PARTIES

FOR THE YEARS ENDED DECEMBER 31, 2023

Client Name Description AVC TECH. (VIETNAM) CO., LTD. Other Receivable AVC INTERNATIONAL CO., LTD.-SAMOA Receipts under custody AVC AMERICA, INC. Receipts under custody WUCHIDA INTERNATIONAL CO., LTD. Other Receivable ASIA VITAL COMPONENTS (SHEN ZHEN) CO., LTD. Other Receivable Total (Less): loss allowance Net	(In Thousands of New Taiwan Dollars) Amount Note $5,643 8,664 1,459 3,528 95 19,389 － $19,389

～ 88 ～

ASIA VITAL COMPONENTS CO., LTD

7. STATEMENT OF INVENTORIES

FOR THE YEARS ENDED DECEMBER 31, 2023

(In Thousands of New Taiwan Dollars)

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Net Realizable
Item Cost Note
Value
Raw materials $3,416 $3,244
Finished goods 12,214,763 12,075,978
Materials and supplies in transit 609
Total 12,218,788 $12,079,222
(Less):Allowance for loss on inventory valuation (138,957)
Net $12,079,831
----- End of picture text -----

～ 89 ～

ASIA VITAL COMPONENTS CO., LTD

8. STATEMENT OF PREPAYMENTS

FOR THE YEARS ENDED DECEMBER 31, 2023

(In Thousands of New Taiwan Dollars)

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

Item Amount Note
Other prepayments $15,551
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ASIA VITAL COMPONENTS CO., LTD

STATEMENT OF OTHER CURRENT ASSETS

FOR THE YEARS ENDED DECEMBER 31, 2023

(In Thousands of New Taiwan Dollars)

Item Temporary payments	Amount Note $26,258

～ 90 ～

ASIA VITAL COMPONENTS CO., LTD

STATEMENT OF FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME, NON-CURRENT

FOR THE YEARS ENDED DECEMBER 31, 2023

(In Thousands of New Taiwan Dollars)

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

Balance, January 1, 2023 Additions(Decrease) Balance, December 31, 2023 Accumulated
Investees Shares Fair value Shares Amount Shares Percentage Amount impairment Collateral Note
(In Thousands) (In Thousands) (In Thousands)
RTR-TECH TECHNOLOGY CO., LTD. 14,000 －－－ 14,000 19.42% － NA －
APTOS TECHNOLOGY INC. 450 －－－ 450 0.74% － NA －
UBIQCONN TECHNOLOGY, INC. 4,225 $32,536 (85) ($655) 4,140 5.52% $31,881 NA －
WK TECHNOLOGY FUND IX II LTD. －－ 3,000 30,000 3,000 2.67% 30,000
Total $32,536 $29,345 $61,881
----- End of picture text -----

～ 91 ～

ASIA VITAL COMPONENTS CO., LTD

STATEMENT OF INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD FOR THE YEARS ENDED DECEMBER 31, 2023

(In Thousands of New Taiwan Dollars)

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

Balance, January 1, 2023 Additions(Note 1) Decrease(Note 2) Investment Incomeor Loss from Balance, December 31, 2023 Fair value/Net equity value
Investees (In Thousands)Shares Amount (In Thousands)Shares Amount (In Thousands)Shares Amount Accounted ForUsing EquityInvestment (In Thousands)Shares Percentage Amount Unit price(NTD) Total Amount Collateral Note
Method
AVC INTERNATIONAL CO., LTD. － B.V.I. 16 $10,145,113 －－－ ($179,736) $1,077,779 16 100.00% $11,043,156 $804,767.90 $13,262,552 －
CHIHUNG INTERNATIONAL LTD. 32,770 5,548,633 －－－ (42,826) 648,801 32,770 100.00% 6,154,608 $188.61 6,180,737 －
MERIT TRADING CORPORATION 892 132,794 －－－ (2,528) (36,602) 892 100.00% 93,664 $104.96 93,664 －
RAYNEY INTERNATIONAL LTD. 2,400 131,536 －－－ (2,714) 68,225 2,400 100.00% 197,047 $82.10 197,047 －
AVC AMERICA, INC. 41 226,334 － $2,943 － 458 41 100.00% 229,735 $5,606.48 230,858 －
AVC INTERNATIONAL (SAMOA) CO., LTD. 300 6,930 － 370 －－ 3,901 300 100.00% 11,201 $38.99 11,696 －
JADS CORPORATION (HK) LTD. 10 26,546 －－－ (13) 2,380 10 100.00% 28,913 $2,891.28 28,913 －
ZIMAG TECHNOLOGY CO., INC. 2,700 50,818 －－－ (3,242) 2,922 2,700 9.53% 50,498 $19.63 52,992 －
AVC INTERNATIONAL CO., LTD. － SAMOA 1,000 129,057 － 2,221 －－ (96,157) 1,000 100.00% 35,121 $35.12 35,121 －
FOSITEK CORP. 11,637 459,294 － 250,248 (70) (49,651) 118,207 11,567 16.87% 778,098 $382.50 4,424,302 －
HUNG YE INVESTMENT CO., LTD. 6,000 5,381 －－－－ 17 6,000 100.00% 5,398 $0.90 5,398 －
D-MAX TECHNOLOGY CO., LTD. 28,500 317,605 －－－ (24,769) 66,885 28,500 100.00% 359,721 $13.03 371,340 －
AVC EUROPE TECHNOLOGY GMBH 250 8,447 － 328 －－ 82 250 100.00% 8,857 $35.43 8,857 －
AVC TECH. (VIETNAM) CO., LTD. (NOTE 3) 1,372,455 －－－ (46,041) (250,368) (NOTE 3) 100.00% 1,076,046 (NOTE 3) 1,465,690 －
PARAGON SEMICONDUCTOR LIGHTING TECHNOLOGY CO., LTD. －－ 5000 50,000 － (1,198) (4,896) 5,000 40.00% 43,906 $7.20 35,981
Total $18,560,943 $306,110 ($352,718) $1,601,634 $20,115,969
----- End of picture text -----

NOTE 1 : Yearly increase mainly including share of profit or loss of subsidiaries and associates, share of other comprehensive income of subsidiaries and associates, cash dividends received from subsidiaries and associates, etc.

NOTE 2 : Yearly decrease mainly including share of profit or loss of subsidiaries and associates, share of other comprehensive income of subsidiaries and associates, cash dividends received from subsidiaries and associates, etc.

NOTE 3 : None amount of shares is issued publicly by Limited Company.

～ 92 ～

ASIA VITAL COMPONENTS CO., LTD

STATEMENT OF PROPERTY, PLANT AND EQUIPMENT FOR THE YEARS ENDED DECEMBER 31, 2023

(In Thousands of New Taiwan Dollars)

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Changes
Item Balance, January 1, 2023 Reclassification Balance, December 31, 2023 Collateral Note
Additions Decrease
adjustments
Original cost
Land $167,151 －－－ $167,151 Land & Buildings
Buildings 224,406 －－ $11,033 235,439
Machinery and equipment 256,149 $81 ($108,833) － 147,397
Molding equipment 17,197 －－－ 17,197
Other facilities 342,885 42,283 (18,699) 14,418 380,887
Construction in progress and equipment awaiting examination 5,750 8,668 － (14,418) －
Total $1,013,538 $51,032 ($127,532) $11,033 $948,071
----- End of picture text -----

ASIA VITAL COMPONENTS CO., LTD

STATEMENT OF ACCUMULATED DEPRECIATION AND IMPAIRMENT OF PROPERTY, PLANT AND EQUIPMENT FOR THE YEARS ENDED DECEMBER 31, 2023

Buildings Machinery and equipment Molding equipment Other facilities Total Item	$99,434 141,812 16,819 248,732 $506,797 Balance, January 1, 2023	Additions $5,388 22,139 312 39,899 $67,738	Decrease － ($35,825) － (18,014) ($53,839) Changes	Reclassification adjustments $4,856 －－－ $4,856	(In Thousands of New Taiwan Dollars) $109,678 128,126 17,131 270,617 $525,552 Note Balance, December 31, 2023

～ 93 ～

ASIA VITAL COMPONENTS CO., LTD

14.STATEMENT OF RIGHT-OF-USE ASSETS

FOR THE YEARS ENDED DECEMBER 31, 2023

(In Thousands of New Taiwan Dollars)

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

Item Balance, January 1, 2023 Additions Decrease Balance, December 31, 2023 Note
Land $9,053 $172 － $9,225
Buildings 58,945 8,778 ($2,669) 65,054
Other equipment 5,902 20,429 (2,354) 23,977
Total $73,900 $29,379 ($5,023) $98,256
----- End of picture text -----

ASIA VITAL COMPONENTS CO., LTD

15.STATEMENT OF ACCUMULATED DEPRECIATION AND IMPAIRMENT OF RIGHT-OF-USE ASSETS

FOR THE YEARS ENDED DECEMBER 31, 2023

(In Thousands of New Taiwan Dollars)

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

Item Balance, January 1, 2023 Additions Decrease Balance, December 31, 2023 Note
Land $3,660 $878 － $4,538
Buildings 26,303 11,094 ($1,713) 35,684
Other equipment 2,031 1,792 (1,179) 2,644
Total $31,994 $13,764 ($2,892) $42,866
----- End of picture text -----

～ 94 ～

ASIA VITAL COMPONENTS CO., LTD

16. STATEMENT OF INVESTMENT PROPERTY

FOR THE YEARS ENDED DECEMBER 31, 2023

(In Thousands of New Taiwan Dollars)

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

Balance, Changes Balance,
Item January 1, Reclassification December 31, Collateral Note
2023 Additions Decrease 2023
adjustments
Buildings $107,105 －－ ($11,033) $96,072 all Calculated on a straight-line basis
Economic lives: 55~57 year
Accumulated depreciation and impairment - buildings (76,128) ($2,008) － 4,856 (73,280)
Net $30,977 ($2,008) － ($6,177) $22,792
----- End of picture text -----

ASIA VITAL COMPONENTS CO., LTD

STATEMENT OF INTANGIBLE ASSETS

FOR THE YEARS ENDED DECEMBER 31, 2023

(In Thousands of New Taiwan Dollars)

Original cost Computer software Patents License fee Total Item	$145,088 3,686 25,679 $174,453 Balance, January 1, 2023	Additions $38,259 －－ $38,259	Decrease －－－－ Changes	Reclassification adjustments －－－－	$183,347 3,686 25,679 $212,712 Economic lives: 5~10 year Calculated on a straight-line basis Economic lives: 1~5 year Economic lives: 5 year Balance, December 31, 2023 Note

ASIA VITAL COMPONENTS CO., LTD

STATEMENT OF ACCUMULATED AMORTIZATION OF INTANGIBLE ASSETS

FOR THE YEARS ENDED DECEMBER 31, 2023

(In Thousands of New Taiwan Dollars)

Computer software Patents License fee Total Item	$115,457 3,686 21,151 $140,294 Balance, January 1, 2023	Additions $32,553 － 876 $33,429	Decrease －－－－ Changes	Reclassification adjustments －－－－	$148,010 3,686 22,027 $173,723 Balance, December 31, 2023 Note

～ 95 ～

ASIA VITAL COMPONENTS CO., LTD

19. STATEMENT OF DEFERRED TAX ASSETS

FOR THE YEARS ENDED DECEMBER 31, 2023

(In Thousands of New Taiwan Dollars)

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

Item Description Amount Note
Deferred tax assets $1,053,980
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～ 96 ～

ASIA VITAL COMPONENTS CO., LTD

20. STATEMENT OF OTHER NON-CURRENT ASSETS

FOR THE YEARS ENDED DECEMBER 31, 2023

(In Thousands of New Taiwan Dollars)

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

Item Description Amount Note
Advance payments in equipments $3,981
Refundable deposits 8,213
Others 4,492
Total $16,686
----- End of picture text -----

～ 97 ～

ASIA VITAL COMPONENTS CO., LTD

21. STATEMENT OF SHORT-TERM BORROWINGS

FOR THE YEARS ENDED DECEMBER 31, 2023

(In Thousands of New Taiwan Dollars)

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

Bank Name Description Amount Contract Period Interest rates applied Collateral Note
Taiwan Cooperative Bank Short term Working capital $1,436,205 2023.9.18~2024.9.18 1.7740% None
The Export-lmport Bank of Roc Short term Working capital 250,000 2023.6.26~2024.6.26 1.6636% None
Bank of Taiwan Short term Working capital 100,000 2023.12.11~2024.3.08 1.6500% None
Taiwan Business Bank Short term Working capital 200,000 2023.11.14~2024.11.14 1.6500% None
The Shanghai Commercial & Savings Bank, Ltd. Short term Working capital 200,000 2023.2.03~2024.2.03 1.6750% None
Total $2,186,205
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～ 98 ～

ASIA VITAL COMPONENTS CO., LTD

22. STATEMENT OF NOTES PAYABLE

FOR THE YEARS ENDED DECEMBER 31, 2023

(In Thousands of New Taiwan Dollars)

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Client Name Description Amount Note
Company I $1,268
Others (Note) 20,945
Total $22,213
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Note: The amount of each item in others does not exceed 5% of the account balance.

～ 99 ～

ASIA VITAL COMPONENTS CO., LTD

23. STATEMENT OF ACCOUNTS PAYABLE

FOR THE YEARS ENDED DECEMBER 31, 2023

(In Thousands of New Taiwan Dollars)

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

Client Name Description Amount Note
Company J $129,632
Company K 113,169
Company L 92,106
Company M 56,666
Company N 35,522
Others(Note) 181,778
Total $608,873
----- End of picture text -----

Note: The amount of each item in others does not exceed 5% of the account balance.

ASIA VITAL COMPONENTS CO., LTD

24. STATEMENT OF ACCOUNTS PAYABLE - RELATED PARTIES

FOR THE YEARS ENDED DECEMBER 31, 2023

(In Thousands of New Taiwan Dollars)

Client Name Description ASIA VITAL COMPONENTS (SHEN ZHEN) CO., LTD. ASIA VITAL COMPONENTS (CHINA) CO., LTD. AVC OPTICS (WUHAN) CORP. ASIA VITAL COMPONENTS (CHENGDU) CO., LTD. ASIA VITAL COMPONENTS (DONGGUAN) CO.,LTD. FOSITEK CORP. (JIASHAN) D-MAX ELECTRONICS CO.,LTD. AVC TECH. (VIETNAM) CO., LTD. Total	Amount Note $5,138,010 164,403 341,898 521,137 3,962,247 28 392,125 245,168 $10,765,016

～ 100 ～

ASIA VITAL COMPONENTS CO., LTD

25. STATEMENT OF OTHER PAYABLES

FOR THE YEARS ENDED DECEMBER 31, 2023

(In Thousands of New Taiwan Dollars)

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

Item Description Amount Note
Accrued employee salaries and bonuses $782,038
Remuneration to directors and employee 319,296
Others(Note) 1,664,579
Total $2,765,913
----- End of picture text -----

Note: The amount of each item in others does not exceed 5% of the account balance.

ASIA VITAL COMPONENTS CO., LTD

26. STATEMENT OF OTHER PAYABLES - RELATED PARTIES

FOR THE YEARS ENDED DECEMBER 31, 2023

(In Thousands of New Taiwan Dollars)

Client Name Description AVC AMERICA ,INC. Receipts under custody AVC EUROPE TECHNOLOGY GMBH service fees Total	Amount Note $3,044 84 $3,128

Note: The amount of each item in others does not exceed 5% of the account balance.

～ 101 ～

ASIA VITAL COMPONENTS CO., LTD

27. STATEMENT OF CURRENT TAX LIABILITIES

FOR THE YEARS ENDED DECEMBER 31, 2023

(In Thousands of New Taiwan Dollars)

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

Item Amount Note
Current tax liabilities $1,324,392
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～ 102 ～

ASIA VITAL COMPONENTS CO., LTD

28. STATEMENT OF OTHER CURRENT LIABILITIES

FOR THE YEARS ENDED DECEMBER 31, 2023

(In Thousands of New Taiwan Dollars)

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

Item Description Amount Note
Temporary receipts Temporary receipts $549,307
Receipts under custody Deduction of taxes and benefits 237,472
Others Current liabilities 1,151,255
Total $1,938,034
----- End of picture text -----

～ 103 ～

ASIA VITAL COMPONENTS CO., LTD

STATEMENT OF LONG-TERM LOANS FOR THE YEARS ENDED DECEMBER 31, 2023

(In Thousands of New Taiwan Dollars)

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

Creditor Type Balance, December 31, 2023 Amount Contract Period Interest rates applied Collateral Description
current portion non-current portion
Taiwan Cooperative Bank Unsecured loans $168,750 ($75,000) $93,750 2022.3.25~2026.3.24 1.6530% None Four-year loan: principal is repaid in 16 quarterly payments with monthly interest payments.
Taiwan Cooperative Bank Unsecured loans 406,250 (125,000) 281,250 2023.2.09~2027.2.09 1.7030% None Four-year loan: principal is repaid in 16 quarterly payments with monthly interest payments.
E. Sun Bank Unsecured loans 500,000 (62,500) 437,500 2023.8.25~2027.8.25 1.7100% None Three-year loan: interest-only payment for the first year. Principal is amortized on a quarterly basis, and interest is paid on a monthly basis.
Export-Import Bank of the Republic of China Unsecured loans 250,000 (62,500) 187,500 2021.12.21~2027.12.21 1.9919% None Six-year loan: interest-only payment for 30 months. Principal is repaid in 8 halfly payment with quarterly interest payments.
Export-Import Bank of the Republic of China Unsecured loans 770,000 (96,250) 673,750 2022.4.11~2028.4.11 1.9926% None Six-year loan: interest-only payment for 30 months. Principal is repaid in 8 halfly payment with quarterly interest payments.
Taiwan Business Bank Unsecured loans 312,500 (125,000) 187,500 2022.6.17~2026.6.17 1.6500% None Four-year loan: principal is repaid with monthly interest payments.
HSBC Bank (Taiwan) Limited Unsecured loans 200,000 － 200,000 2023.12.15~2025.12.15 1.6200% None Revolving credit for 2 years. The two-year limit is based on the initial draw-down date on the dial date. Monthly interest payments. Principal can be paid on the maturity
Hua Nan Commercial Bank Unsecured loans 200,000 － 200,000 2023.10.16~2026.10.16 1.6800% None Three-year loan: principal is repaid with monthly interest payments. Principal can be paid on the maturity day.
DBS Bank Unsecured loans 160,000 － 160,000 2023.12.25~2024.3.25 1.6400% None Revolving line are two years,every loans can’t be over six months.The two-year limit is based on the initial draw-down date. The actual credit line has no maturity date.
Land Bank of Taiwan Unsecured loans 199,999 (100,001) 99,998 2022.12.12~2025.12.12 1.7548% None Three-year loan: principal is repaid with monthly interest payments.
Total $3,167,499 ($646,251) $2,521,248
(Less): current portion (646,251)
Net $2,521,248
----- End of picture text -----

～ 104 ～

ASIA VITAL COMPONENTS CO., LTD

30.STATEMENT OF LEASE LIABILITIES, CURRENT

FOR THE YEARS ENDED DECEMBER 31, 2023

(In Thousands of New Taiwan Dollars)

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

Balance,
Discount
Item Lease term December 31, Note
rate
2023
Land lease 2019.5.1~2029.4.30 1.8000% $5,033
Buildings lease 2021.1.1~2027.12.31 1.8000% 30,304
Transportation equipment lease 2022.4.11~2026.4.20 1.8000% 2,990
Others 224
Total $38,551
Less: current portion (12,563)
Net $25,988
----- End of picture text -----

～ 105 ～

ASIA VITAL COMPONENTS CO., LTD

31. STATEMENT OF DEFERRED TAX LIABILITIES

FOR THE YEARS ENDED DECEMBER 31, 2023

(In Thousands of New Taiwan Dollars)

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

Item Amount Note
Deferred tax liabilities, noncurrent $1,566,726
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ASIA VITAL COMPONENTS CO., LTD

32. STATEMENT OF NET DEFINED BENEFIT LIABILITIES, NONCURRENT

FOR THE YEARS ENDED DECEMBER 31, 2023

(In Thousands of New Taiwan Dollars)

Item Balance, January 1, 2023 List Contribution Current actuarial profit and loss Balance, December 31, 2023	Amount ($21,816) 685 (2,664) 6,080 ($17,715) Note

～ 106 ～

ASIA VITAL COMPONENTS CO., LTD

33. STATEMENT OF GUARANTEE DEPOSITS

FOR THE YEARS ENDED DECEMBER 31, 2023

(In Thousands of New Taiwan Dollars)

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Item Amount Note
Rent security deposit $1,426
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～ 107 ～

ASIA VITAL COMPONENTS CO., LTD

34. STATEMENT OF OPERATING REVENUES

FOR THE YEARS ENDED DECEMBER 31, 2023

(In Thousands of New Taiwan Dollars)

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

Item Shipments(PCS) Amount Note
3C electronic products 138,438 thousand PCS $43,253,025
(Less): Sales return (170,308)
Sales discounts and allowances (108,720)
Net operating revenue $42,973,997
----- End of picture text -----

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ASIA VITAL COMPONENTS CO., LTD

35. STATEMENT OF OPERATING COSTS

FOR THE YEARS ENDED DECEMBER 31, 2023

(In Thousands of New Taiwan Dollars)

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

Item Amount
Costs of goods sold
Direct material
Raw material purchased $17,687
Add: Raw material, beginning of year 48,646
(Less): Raw material, end of year (3,416)
Raw material sold (58,628)
Others (3,392)
Direct material used 897
Direct labor 3,108
Factory overheads 157,990
Manufacturing cost 161,995
－
Add: Work in process, beginning of year
－
(Less): Work in process, end of year
Cost of finished goods 161,995
Add: Finished goods, beginning of year 11,848,160
Finished goods purchased 35,322,560
Others 623,579
(Less): Finished goods, end of year (12,214,763)
Transferred to manufacturing and operating expenses (9,626)
Costs of goods sold 35,731,905
(Less): Other operating cost 712,366
Total $36,444,271
----- End of picture text -----

～ 109 ～

ASIA VITAL COMPONENTS CO., LTD

36.STATEMENTS OF SALES AND MARKETING EXPENSES

FOR THE YEARS ENDED DECEMBER 31, 2023

(In Thousands of New Taiwan Dollars)

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

Item Amount
Personnel $243,388
Import and export 60,448
Entertainment expense 75,648
Others(Note) 64,630
Total $444,114
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Note: The amount of each item in others does not exceed 5% of the account balance.

ASIA VITAL COMPONENTS CO., LTD

37.STATEMENTS OF GENERAL AND ADMINISTRATIVE EXPENSES FOR THE YEARS ENDED DECEMBER 31, 2023

(In Thousands of New Taiwan Dollars)

Item Personnel Entertainment expense Others(Note) Total	Amount $439,295 28,412 62,842 $530,549

Note: The amount of each item in others does not exceed 5% of the account balance.

ASIA VITAL COMPONENTS CO., LTD

38.STATEMENT OF RESEARCH AND DEVELOPMENT EXPENSES FOR THE YEARS ENDED DECEMBER 31, 2023

(In Thousands of New Taiwan Dollars)

Item Personnel Service Others(Note) Total	Amount $802,411 91,289 194,842 $1,088,542

Note: The amount of each item in others does not exceed 5% of the account balance.

～ 110 ～

ASIA VITAL COMPONENTS CO., LTD

39. STATEMENT OF NONE-OPERATING INCOME AND EXPENSES

FOR THE YEARS ENDED DECEMBER 31, 2023

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

Item Amount
Interest income $295,363
Rental income 7,212
Others 344,282
Subtotal 351,494
Disposal of property, plant and equipment, net 16,023
(Losses) on foreign exchange income 78,136
Expenditures (27,447)
Others (572)
Subtotal 66,140
Financial costs (133,370)
Share of profit or loss of subsidiaries and associates 1,601,634
Total $2,181,261
----- End of picture text -----

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AI assistant

AVC — Annual Report 2023

52251_rns_2023-12-05_8c9d6163-01f7-49bf-b077-b86ec1df9cb6.pdf

ASIA VITAL COMPONENTS CO. , LTD

PARENT COMPANY ONLY

FINANCIAL STATEMENTS

WITH REPORT OF INDEPENDENT ACCOUNTANTS

FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022

Independent Auditors’ Report

Opinion

Basis for Opinion

Key Audit Matters

Other Matter – Making Reference to the Audits of Component Auditors

Responsibilities of Management and Those Charged with Governance for Parent Company only Financial Statements

Auditor’s Responsibilities for the Audit of the Parent Company only Financial Statements

Notice to Readers

English translation of Parent Company Only Financial Statements originally issued in Chinese ASIA VITAL COMPONENTS CO., LTD

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME

English translation of Parent Company Only Financial Statements originally issued in Chinese ASIA VITAL COMPONENTS CO., LTD

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

1. History and organization

2. Date and procedures of authorization of financial statements for issue

3. NEWLY ISSUED OR REVISED STANDARDS AND INTERPRETATIONS

B. IFRS 17 “Insurance Contracts”

C. Lack of Exchangeability – Amendments to IAS 21

Financial assets measured at amortized cost

Financial asset measured at fair value through other comprehensive income

Financial asset measured at fair value through profit or loss

Classification between liabilities or equity

Equity instruments

Compound instruments

Financial liabilities

Financial liabilities at fair value through profit or loss

Financial liabilities at amortized cost

Derecognition of financial liabilities

E. Offsetting of financial instruments

(8) Fair value measurement

A. In the principal market for the asset or liability, or

(9) Inventories

(11) Property, plant and equipment

(12) Investment property

(13)Leases

Company as a lessee

Company as a lessor

(14)Intangible assets

Research and development costs

(15) Impairment of non-financial assets

(16) Provisions

(17) Revenue recognition

(18) Borrowing costs

(19) Share-based payment transactions

(20) Post-employment benefits

(21) Income taxes

Current income tax

(22) Business combinations and goodwill

5. Significant accounting judgements, estimates and assumptions

Estimates and assumptions

Inventories

6. Contents of significant accounts

(1) Cash and cash equivalents

(2) Financial assets measured at amortized cost, current

(3) Notes receivable, net

A.

Movement of the loss allowance table:

(4) Accounts receivable, net

(5) Other receivables and other receivables-related parties

(6) Inventories

B. Financial information of associates:

(9) Property, plant and equipment

(10) Investment property

(11) Intangible assets

(14) Other payable

(16) Corporate Bonds payable

- (17) Long term borrowings

(18) Post-employment benefits

A. Defined contribution plan

B. Defined benefits plan

(19) Equities

C. Retained earnings and dividend policies

(20) Share-based payment plans

AVC Annual Report 2023