AVC - Interim / Quarterly Report 2023

ASIA VITAL COMPONENTS CO. , LTD

AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

WITH REPORT OF INDEPENDENT ACCOUNTANTS

FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 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 consolidated 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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REVIEW REPORT OF INDEPENDENT ACCOUNTANTS

English Translations of a Report Originally Issued in Chinese

To Asia Vital Components Co., Ltd.

Introduction

We have reviewed the accompanying consolidated balance sheets of Asia Vital Components Co., Ltd. and subsidiaries (collectively, the "Company ") as of September 30, 2023 and 2022, the related consolidated statements of comprehensive income for the three-month and nine-month periods ended September 30, 2023 and 2022 and consolidated statements of changes in equity and cash flows for the nine-month periods ended September 30, 2023 and 2022, and notes to the consolidated financial statements, including the summary of significant account policies (together “the consolidated financial statements”). Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, “Interim Financial Reporting” as endorsed and became effective by Financial Supervisory Commission of the Republic of China, Our responsibility is to express a conclusion on these consolidated financial statements based on our reviews.

Scope of Review

Except for the Basis for Qualified Conclusion paragragh, we conducted our reviews in accordance with the Standard on Review Engagements 2410 , ”Review of Financial Information Performed by the Independent Auditor of the Entity” of the Republic of China. A review of consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with auditing standards generally accepted in the Republic of China and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Basis for Qualified Conclusion

As discussed in Note, certain non-significant subsidiaries included in the consolidated financial statements were unreviewed. These subsidiaries’ total assets amounted to NT$13,230,520 thousand and NT$10,410,321 thousand, or 20% and 17% of the total consolidated assets as of September 30, 2023 and 2022, respectively. These subsidiaries’ total liabilities amounted to NT$7,395,741 thousand and NT$5,364,366 thousand, or 17% and 12% of the total consolidated liabilities as of September 30, 2023 and 2022, respectively. The comprehensive income of these subsidiaries amounted to (NT$187,586) thousand and (NT$199,536) thousand, or (9%) and (12%) of the consolidated comprehensive income for the three-month periods ended September 30, 2023 and 2022, respectively.

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The comprehensive income of these subsidiaries amounted to (NT$377,831) thousand and (NT$698,433) thousand, or (9%) and (17%) of the consolidated comprehensive income for the ninemonth periods ended September 30, 2023 and 2022, respectively. As discussed in Note 6(9) to consolidated financial statements mentioned, the investments accounted for under the equity method were NT$362,034 thousand and NT$257,754 thousand as of September 30, 2023 and 2022 respectively. The share of income of associates under the equity method amounted to NT$32,297 thousand and NT$26,278 thousand for the three-month periods ended September 30, 2023 and 2022, respectively. The share of income of associates under the equity method amounted to NT$72,584 thousand and NT$31,946 thousand for the three-month periods ended September 30, 2023 and 2022, respectively. The share of the other comprehensive income of associates under the equity method amounted to (NT$966) thousand and (NT$5,817) thousand for the three-month periods ended September 30, 2023 and 2022, respectively. The share of the other comprehensive income of associates under the equity method amounted to (NT$6,324) thousand and (NT$9,845) thousand for the nine-month periods ended September 30, 2023 and 2022, respectively. These amounts were based on the investees’ unreviewed financial statements. The information on Note 13 to consolidated financial statements was not reviewed by the independent accountants.

Qualified Conclusion

Based on our reviews, except for the information of certain non-significant subsidiaries and investees mentioned in the Basis for Qualified Conclusion paragraph where were based on the unreviewed financial statements that might be adjusted if they were reviewed by the independent accountants, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Company and its subsidiaries as of September 30, 2023 and 2022, their consolidated financial performance for the three-month and nine-month periods ended September 30, 2023 and 2022, and cash flows for the nine-month periods ended September 30, 2023 and 2022, in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, “Interim Financial Reporting” as endorsed and became effective by Financial Supervisory Commission of the Republic of China.

ERNST & YOUNG

Taiwan Republic of China Nov 10, 2023

Notice to Readers

The accompanying consolidated financial statements are intended only to present the consolidated 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 consolidated financial statements are those generally accepted and applied in the Republic of China.

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English translation of Consolidated Financial Statements Originally issued in Chinese

ASIA VITAL COMPONENTS CO., LTD AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

As of September 30, 2023, December 31, 2022 and September 30, 2022 (Expressed in thousands of New Taiwan Dollars)

Assets	Notes	September 30, 2	023	December 31, 2	022	September 30, 2	022
		Amount	％	Amount	％	Amount	％
Current assets Cash and cash equivalents Financial assets measured at amortized costs, current Notes receivable, net Accounts receivable, net Other receivables Other receivables-related parties Inventories, net Prepayments Other current assets Total current assets Non-current assets Financial assets measured at fair value through other comprehensive income, noncurrent Financial assets at amortized cost-noncurrent Investments accounted for under the equity method Property, plant and equipment Right-of-use assets Investment property 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) 6(4).(5) 6(5) 6(6) 6(7) 4, 6(8) 6(2) 6(9) 4, 6(10), 8 4, 6(23), 8 4, 6(11), 8 6(12) 4, 6(27) 6(13), 8 4, 6(19)	$22,909,379 1,065,285 601,152 7,047,453 642,170 9,954 16,148,710 564,115 720,637 49,708,855 167,004 32,203 362,034 11,253,671 1,748,145 137,209 167,590 1,303,761 1,250,317 21,809 16,443,743 $66,152,598	35 1 1 11 1 0 24 1 1 75 `0` `0` `1` `17` `3` `0` `0` `2` `2` `0` 25 100	$20,048,964 1,591,337 737,514 3,992,020 342,920 8,895 17,359,772 707,461 697,119 45,486,002 137,638 30,645 255,698 9,694,096 1,874,586 99,867 134,102 1,253,720 1,485,778 21,816 14,987,946 $60,473,948	33 3 1 6 1 0 29 1 1 75 0 0 1 16 3 0 0 2 3 0 25 100	$18,911,339 473,488 768,553 4,408,449 503,448 12,181 19,660,068 968,793 783,604 46,489,923 140,563 31,683 257,754 9,072,704 1,938,800 101,609 134,517 1,219,157 1,848,826 1,649 14,747,262 $61,237,185	31 1 1 7 1 0 32 2 1
							76
							0 0 1 15 3 0 0 2 3 0
							24

							100

(The accompanying notes are an integral part of the consolidated financial statements.)

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English translation of Consolidated Financial Statements Originally issued in Chinese

ASIA VITAL COMPONENTS CO., LTD AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

As of September 30, 2023, December 31, 2022 and September 30, 2022

(Expressed in thousands of New Taiwan Dollars)

Liabilities and Equity	Notes	September 30, 2	023	December 31, 2	022	September 30, 2	022
		Amount	％	Amount	％	Amount	％
Current liabilities Short-term loans Contract liabilities, current Notes payable Accounts payable Other payables 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, noncurrent Long-term deferred revenue 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 Unappropriated earnings Total retained earnings Other components of equity Total equity attributable to the parent company Non-controlling interests Total equity Total liabilities and equity	6(14) 6(22) 6(15) 4, 6(27) 4, 6(23) 6(17) 6(16) 6(17) 4, 6(27) 4, 6(23) 6(18) 6(20) 6(20) 6(20) 6(20)	$6,765,893 254 2,869,074 14,118,732 6,139,284 1,377,840 225,809 2,149,766 872,482	10 0 5 21 9 2 1 3 1	$6,294,019 5,439 2,898,825 11,183,322 4,828,690 1,334,677 237,049 4,421,873 1,675,864	10 0 5 19 8 2 0 7 3 54 4 7 3 2 1 0 17 71 6 2 2 2 16 20 (2) 26 3 29 100	$6,750,197 13,060 2,956,654 14,175,370 4,886,245 1,184,093 235,799 2,983,357 1,597,916	11 0 5 23 8 2 0 5 3
		34,519,134	52	32,879,758		34,782,691	57
		2,400,000 2,980,732 1,969,856 925,535 686,212 22,889	4 5 3 1 1 0	2,400,000 4,189,443 1,837,012 1,026,275 705,691 12,685		2,400,000 3,933,042 1,775,672 1,077,655 723,365 10,623	4 6 3 2 1 0
		8,985,224	14	10,171,106		9,920,357	16
		43,504,358	66	43,050,864		44,703,048	73
		3,833,101 3,599,829 1,768,785 1,119,685 11,226,984	6 5 3 2 17	3,533,101 1,006,639 1,351,070 1,445,059 9,280,252		3,533,101 1,006,639 1,351,070 1,445,059 8,184,121	6 2 2 2 13
		14,115,454	22	12,076,381		10,980,250	17
		(1,002,686)	(2)	(1,119,685)		(813,999)	(1)
		20,545,698 2,102,542	31 3	15,496,436 1,926,648		14,705,991 1,828,146	24 3
		22,648,240	34	17,423,084		16,534,137	27

		$66,152,598	100	$60,473,948		$61,237,185	100

(The accompanying notes are an integral part of the consolidated financial statements.)

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English translation of Consolidated Financial Statements originally issued in Chinese ASIA VITAL COMPONENTS CO., LTD AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME As of September 30, 2023, December 31, 2022 and September 30, 2022 (Expressed in thousands of New Taiwan Dollars,except for earnings per share)

Items	Notes	For the three-month period ended September 30, 2023	For the three-month period ended September 30, 2023	For the three-month period ended September 30, 2022	For the three-month period ended September 30, 2022	For the nine-month period ended September 30, 2023	For the nine-month period ended September 30, 2023	For the nine-month period ended September 30, 2022	For the nine-month period ended September 30, 2022
		Amount	`％`	Amount	`％`	Amount	`％`	Amount	`％`
Operating revenues Operating costs Gross profit Operating expenses Sales and marketing expenses General and administrative expenses Research and development expenses Expected credit impairment (losses) gains Subtotal Operating income Non-operating income and expenses Interest income Other income Other gains and losses Finance costs Share of profit or loss of 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: Unrealized gains (losses) from equity instruments investments measured at fair value through other comprehensive income 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 Net income attributable to: Stockholders of the parent Non-controlling interests Comprehensive income (loss) attributable to: Stockholders of the parent Non-controlling interests Earnings per share (NTD) Earnings per share-basic Earnings per share-diluted	4, 6(22) 6(23).(24) 6(23).(24) 6(25) 6(25) 6(25) 6(25) 4, 6(9) 6(27) 6(26) 4, 6(28)	$15,768,820 (12,353,297)	100 (78)	$14,882,645 (11,862,638)	100 (80)	$42,474,247 (33,731,617)	100 (79)	$41,239,538 (33,184,243)	100 (80)
		3,415,523	22	3,020,007	20	8,742,630	21	8,055,295	20
		(240,221) (207,489) (840,750) (21,817)	(2) (1) (6) 0	(258,246) (190,550) (815,361) 170	(2) (1) (5) 0	(746,711) (602,972) (2,342,622) (45,445)	(2) (1) (6) 0	(660,031) (543,118) (2,225,012) (7,199)	(2) (1) (6) (0)
		(1,310,277)	(9)	(1,263,987)	(8)	(3,737,750)	(9)	(3,435,360)	(9)
		2,105,246	13	1,756,020	12	5,004,880	12	4,619,935	11
		75,605 135,972 (23,644) (105,628) 32,297	1 1 (0) (1) 0	14,160 222,366 (53,985) (73,861) 26,278	0 1 (0) (0) 0	242,637 488,215 52,435 (326,649) 72,584	1 1 (0) (1) 0	36,705 461,864 (185,862) (167,586) 31,946	0 1 (0) (0) 0
		114,602	1	134,958	1	529,222	1	177,067	1
		2,219,848 (634,193)	14 (4)	1,890,978 (555,000)	13 (4)	5,534,102 (1,534,961)	13 (4)	4,797,002 (1,381,663)	12 (4)
		1,585,655	10	1,335,978	9	3,999,141	9	3,415,339	8
		(1,112) 660,067 (966) (99,178)	(0) 4 (0) (0)	1,099 326,392 (5,817) (53,525)	0 2 (0) (0)	880 131,582 (6,324) (1,083)	0 1 (0) (0)	2,825 800,861 (9,845) (120,904)	0 2 (0) (0)
		558,811	4	268,149	2	125,055	1	672,937	2
		$2,144,466	14	$1,604,127	11	$4,124,196	10	$4,088,276	10
		$1,425,912 159,743	9 1	$1,239,001 96,977	8 1	$3,633,903 365,238	8 1	$3,081,020 334,319	7 1
		$1,585,655	10	$1,335,978	9	$3,999,141	9	$3,415,339	8
		$1,929,339 215,127	12 2	$1,494,577 109,550	10 1	$3,753,034 371,162	9 1	$3,712,080 376,196	9 1
		$2,144,466	14	$1,604,127	11	$4,124,196	10	$4,088,276	10
		$3.72		$3.51		$9.75		$8.72
		$3.72		$3.49		$9.75		$8.69

(The accompanying notes are an integral part of the consolidated financial statements.)

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English translation of Consolidated Financial Statements originally issued in Chinese

ASIA VITAL COMPONENTS CO., LTD AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

For the nine-month periods ended September 30, 2023 and 2022

(Expressed in thousands of New Taiwan Dollars)

Items				Equity Attributable	to the Parent Comp	any			Non-Controlling Interests	Total Equity
	Capital	Additional Paid- in Capital		Retained Earnings		Other Comp	onents of Equity	Total
	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 Cash dividends Special reserve reversed Donation from shareholders Cash dividends from capital surplus Income for the nine-month period ended September 30, 2022 Other comprehensive income (loss) for the nine-month period ended September 30, 2022 Total comprehensive income (loss) Share-based payment transaction Decrease in non-controlling interests Balance as of September 30, 2022 Balance as of January 1, 2023 Appropriation and distribution of 2022 retained earnings Legal reserve Special reserve reversed Cash dividends Donation from shareholders Cash dividends from capital surplus Income for the nine-month period ended September 30, 2023 Other comprehensive income (loss) for the nine-month period ended September 30, 2023 Total comprehensive income (loss) Cash capital increase Share-based payment transaction Decrease in non-controlling interests Proceeds from disposal of financial assets at fair value through other comprehensive income Balance as of September 30, 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) (1,165,924) (118,572) 3,081,020	($1,120,959) 628,235	($324,100) 2,825	$12,413,299 － (1,165,924) － 238 (353,310) 3,081,020 631,060	$1,671,627 334,319 41,877	$14,084,926 － (1,165,924) － 238 (353,310) 3,415,339 672,937
		－	－	－	3,081,020	628,235	2,825	3,712,080	376,196	4,088,276
		99,608						99,608 －	(219,677)	99,608 (219,677)
		$1,006,639	$1,351,070	$1,445,059	$8,184,121	($492,724)	($321,275)	$14,705,991	$1,828,146	$16,534,137
		$1,006,639 251 (317,979)	$1,351,070 417,715	$1,445,059 ($325,374)	$9,280,252 (417,715) 325,374 (1,596,962) 3,633,903	($796,763) 118,251	($322,922) 880	$15,496,436 －－ (1,596,962) 251 (317,979) 3,633,903 119,131	$1,926,648 365,238 5,924	$17,423,084 －－ (1,596,962) 251 (317,979) 3,999,141 125,055
		－	－	－	3,633,903	118,251	880	3,753,034	371,162	4,124,196
		2,550,000 360,918			2,132		(2,132)	2,850,000 360,918 `－` `－`	(195,268)	2,850,000 360,918 (195,268) －
		$3,599,829	$1,768,785	$1,119,685	$11,226,984	($678,512)	($324,174)	$20,545,698	$2,102,542	$22,648,240

(The accompanying notes are an integral part of the consolidated financial statements.)

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English translation of Consolidated Financial Statements originally issued in Chinese ASIA VITAL COMPONENTS CO., LTD AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

For the nine-month periods ended September 30, 2023 and 2022

(Expressed in thousands of New Taiwan Dollars)

Items		For the nine-month period ended September 30, 2023		For the nine-month period ended September 30, 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 associates Loss on disposal of property, plant and equipment Loss on disposal of investments Impairment loss on non-financial assets Others Changes in operating assets and liabilities: Notes receivable Accounts receivable Other receivables Other receivables-related parties Inventories Prepayments Other current assets Other operation assets Contract liabilities Notes payable Accounts payable Other payables 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 measured at fair value through other comprehensive income Proceeds from disposal of financial assets measured at fair value through other comprehensive income Acquisition of financial assets measured at amortized costs Acquisition of financial assets at fair value through profit or loss Proceeds from disposal of financial assets at fair value through profit or loss Acquisition of investments accounted for using 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 Acquisition of right-of-use asset Decrease (Increase) in other noncurrent assets-others (Increase) Decrease in other prepayments Dividends received Net cash (used) in investing activities Cash flows from financing activities: Increase in short-term loans (Decrease) in short-term loans (Decrease) in short-term notes payable Proceeds from long-term loans Repayments of long-term loans Increase in guarantee deposits Repayment of lease liabilites Cash dividends Cash Capital Increase Change in non-controlling interests Net cash provided in financing activities Effect of exchange rate changes on cash and cash equivalents Net increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year		$5,534,102 1,376,935 43,646 657 45,445 326,649 (242,637) (2,070) 360,918 (72,584) 38,250 － 38,435 200,116 136,181 (3,376,428) (15,728) (1,059) 985,560 143,346 (23,518) 526,052 (5,185) (29,751) 2,935,410 1,315,429 (2,272,107) 7 7,966,071 234,559 (331,484) (1,410,078) 6,459,068 (30,000) 3,390 －－－ (50,000) (2,670,438) 1,653 1,837 (76,279) － 365,254 (132,845) 16,043 (2,571,385) 12,746,944 (12,377,220) － 3,021,846 (5,038,618) 10,204 (184,709) (1,914,941) 2,850,000 (195,268) (1,081,762) 54,494 2,860,415 20,048,964 $22,909,379		$4,797,002 1,238,380 41,222 658 7,199 167,586 (36,705) － 99,608 (31,946) 189,728 27,580 38,737 674,416 (24,888) 1,186,696 (99,437) (2,992) (4,778,974) 604,051 223,998 282,553 10,542 62,183 691,092 1,139,940 1,294,555 (2) 7,802,782 37,009 (158,148) (1,300,505) 6,381,138 (14,810) － (27,609) (8,786) 8,879 － (2,445,940) 26,549 (12,356) (22,344) (183,489) (1,034,848) 391,504 4,050 (3,319,200) 19,984,934 (17,298,148) (250,000) 4,570,000 (3,057,220) 1,146 (163,289) (1,519,234) － (219,677) 2,048,512 886,078 5,996,528 12,914,811 $18,911,339

(The accompanying notes are an integral part of the consolidated financial statements.)

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English Translation of Financial Statements Originally Issued in Chinese

ASIA VITAL COMPONENTS CO., LTD AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2023 AND 2022

(Unless otherwise stated, all amounts expressed are in thousands of New Taiwan Dollars)

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 27 September, 2002.

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

The consolidated financial statements of the Company and its subsidiaries (“the Group”) for the ninemonth periods ended September 30, 2023 and 2022 were authorized for issue by the Board of Directors on Nov 10, 2023.

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 Group 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 Group.

(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 Group 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 Group is continuously assessing the possible impact that the application of above standards and interpretations will have on the Groups 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 Group as at the end of the reporting period are listed below.

Items	New, Revised or Amended Standards and Interpretations	Effective Date issued byIASB
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

〜 10 〜

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 group of insurance contracts at the total of the fulfilment cash flows and the contractual service margin. The carrying amount of a group 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 September 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 Group’s financial statements were authorized for issue, the local effective dates are to be determined by FSC. As the Group 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 Group at this point in time. The remaining new or amended standards and interpretations have no material impact on the Group.

～ 11 ～

4. Summary of significant accounting policies

(1) Statement of compliance

The consolidated financial statements of the Group for the nine-month periods ended September 30, 2023 and 2022 have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers (“the Regulations”) and IAS 34 Interim Financial Reporting as endorsed and became effective by the FSC.

(2) Basis of preparation

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

(3) Basis of consolidation

Preparation principle of consolidated financial statements

The Group's consolidated financial statements preparation principles are the same as the 2022 consolidated financial statements. Please refer to the Group's 2022 consolidated financial statements.

The consolidated entities are listed as follows:

Investor	Subsidiary	Main businesses	Percentage of ownership (%)	Percentage of ownership (%)	Percentage of ownership (%)
			2023.9.30	2022.12.31	2022.9.30
The Group	AVC INTERNATIONAL CO., LTD.`－`B.V.I.(AVCI `－`BVI)	Investmentholding	100.00%	100.00%	100.00%
	CHIHUNG INTERNATIONAL LTD.(CHIHUNG)	Investmentholding	100.00%	100.00%	100.00%
	RAYNEY INTERNATIONAL LTD.(RAYNEY)	Trade	100.00%	100.00%	100.00%
	MERIT TRADING CORPORATION (MERIT)	Trade	100.00%	100.00%	100.00%
	AVC AMERICA, INC. (AVCA)	Trade	100.00%	100.00%	100.00%
	AVC INTERNATIONAL (SAMOA) CO., LTD. (AVCI(SAMOA))	Trade	100.00%	100.00%	100.00%
	JADS CORPORATION (HK)LTD.(JADS)	Trade	100.00%	100.00%	100.00%
	AVC INTERNATIONAL CO., LTD.`－`SAMOA (AVCI－SAMOA)	Trade	100.00%	100.00%	100.00%
	HUNG YE INVESTMENT CO., LTD.(HUNGYE)	Investmentholding	100.00%	100.00%	100.00%
	D-MAX TECHNOLOGY CO., LTD. (D-MAX)	Sales and manufacture of electronic parts and related products	100.00%	100.00%	100.00%

～ 12 ～

Investor	Subsidiary	Main businesses	Percentage of ownership (%)	Percentage of ownership (%)	Percentage of ownership (%)
			2023.9.30	2022.12.31	2022.9.30
	FOSITEK CORP. (FST)	Sales and manufacture of electronic parts and related products	19.25%	19.25%	19.25%
	AVC EUROPE TECHNOLOGY GMBH (AVCEU)	Trade	100.00%	100.00%	100.00%
	AVC TECHNOLOGY (VIETNAM) COMPANY LIMITED. (AVC(VN))	Sales and manufacture of electronic parts and related products	100.00%	100.00%	100.00%
AVCI`－`BVI	ASIA VITAL COMPONENTS (SHEN ZHEN) CO., LTD. (AVCSZ)	Sales and manufacture of electronic products	100.00%	100.00%	100.00%
	MACE TECH CORP. (MACE)	Trade	100.00%	100.00%	100.00%
	ASIA VITAL COMPONENTS (CHENGDU) CO., LTD. (AVCCD)	Sales and manufacture of computers, related parts and accessories	100.00%	100.00%	100.00%
	AVC OPTICS CORP. (AVCOC)	Investment holding	100.00%	100.00%	100.00%
MACE	ASIA VITAL COMPONENTS (DONGGUAN) CO.,LTD. (AVCDG)	Manufacture, process and sales of electronic products	100.00%	100.00%	100.00%
AVCDG	AVC PRECISION, CO., LTD.	Manufacture, sales of electronicproducts	100.00%	100.00%	100.00%
AVCOC	AVC OPTICS (WUHAN) CORP. (AVCWH)	Sales and manufacture of computers, related parts and accessories	100.00%	100.00%	100.00%
AVCWH	WUHAN ASIA VITAL COMPONENTS CO.,LTD. (AVCWN)	Trade	100.00%	100.00%	100.00%
CHIHUNG	TONBRIDGE INVESTMENTS LTD. (TONBRIDGE)	Investment holding	(Note)	(Note)	100.00%
	ASIA VITAL COMPONENTS (CHINA) CO., LTD. (AVCCN)	Sales and manufacture of electronic products	100.00%	100.00%	100.00%
AVCCN	BEIJING AVC TECHNOLOGY RESEARCH CENTER CO.,LTD.(AVCBJ)	Maintenance, research and development of electronic products	100.00%	100.00%	100.00%

〜 13 〜

Investor	Subsidiary	Main businesses	Percentage of ownership (%)	Percentage of ownership (%)	Percentage of ownership (%)
			2023.9.30	2022.12.31	2022.9.30
D-MAX	WUCHIDA INTERNATIONAL CO., LTD.(WUCHIDA)	Investment holding	100.00%	100.00%	100.00%
WUCHIDA	D-Max INTERNATIONAL CO.,LIMITED(D-Max)	Investment holding	100.00%	100.00%	100.00%
D-Max	（JIASHAN）D-MAX ELECTRONICS CO.,LTD.	Sales and manufacture of electronic and photographic equipment	100.00%	100.00%	100.00%
FST	MARKETHILL INVESTMENTS LIMITED (MARKETHILL)	Investment holding	100.00%	100.00%	100.00%
MARKETHI LL	FIRST DOME CORP TELECOM.,LTD.	Sales and manufacture of rails, shafts and metal stampingtooling	100.00%	100.00%	100.00%

Note :TONBRIDGE INVESTMENTS LTD. has completed its unregistration in January 2023.

Although the percentage of ownership interests in FST is less than 50%, the Group determined that it has control over FST. This is due to a combination of factors : the Group remains the single largest shareholder of FST since the increase of the investment in September 2014, the Group could obtain proxies to achieve relative majority in the absence of a contractual arrangement in place; and the ability of the Company to appoint or approve the key management personnel of FST who have the ability to direct the relevant activities.

The financial statements of part of the consolidated subsidiaries listed above had not been reviewed by auditors. As of September 30, 2023 and 2022, the related assets of the subsidiaries which were unaudited by auditors amount to $13,230,520 thousand and $10,410,321 thousand respectively, and the related liabilities amount to $7,395,741 thousand and $5,364,366 thousand, respectively. The comprehensive income of these subsidiaries amount to $(187,586) thousand and $(199,536) thousand for the three-month periods ended September 30, 2023 and 2022, respectively. The comprehensive income of these subsidiaries amount to $(377,831) thousand and $(698,433) thousand for the ninemonth periods ended September 30, 2023 and 2022, respectively.

(4) Basis of consolidationt

The accounting policies adopted by the Group in the consolidated financial statements from January 1 to September 30, 2023 are the same as the consolidated financial statements of 2022. For the summary of other important accounting policies, please refer to the Group’s 2022 consolidated financial statements.

Significant accounting judgements, estimates and assumptions

The major sources of significant accounting judgments, estimates and assumptions that are used in the Group's consolidated financial statements for the period from January 1 to September 30 2023 and 2022 are the same as the 2022 consolidated financial statements. Please refer to the Group's 2022 consolidated financial statements.

～ 14 ～

6. Contents of significant accounts

(1)Cash and cash equivalents

Cash on hand and demand deposits Time deposits Commercial paper Total	30 Sep2023	31 Dec 2022	30 Sep2022
	$19,417,590 3,465,973 25,816	$19,013,406 1,004,848 30,710	$18,617,979 293,360 `－`
	$22,909,379	$20,048,964	$18,911,339

Cash and cash equiralents were not pledged.

(2)Financial assets measured at amortized cost, current

	Current: Bank deposits Noncurrent: Bond Total		30 Sep2023		31 Dec 2022		30 Sep2022
			$1,065,285 32,203		$1,591,337 30,645		$473,488 31,683 $505,171
			$1,097,488		$1,621,982

The Group 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

tes receivable, net
A. Notes receivable Less: loss allowance Total	30 Sep2023	31 Dec 2022	30 Sep2022
	$603,347 (2,195)	$739,277 (1,763)	$771,355 (2,802)
	$601,152	$737,514	$768,553

B. Notes receivables arised from operating activities and were not pledged.
C. The Group follows the requirement of IFRS 9 to assess the impairment. The Group 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 Charge for the current period Foreign exchange adjustments As of 30 Sep 2023 As of 1 Jan 2022 (Reversal) for the current period Foreign exchange adjustments As of 30 Sep 2022	Loss allowance
	$1,763 429 3
	$2,195
	$3,039 (348) 111
	$2,802

～ 15 ～

(4)Accounts receivable, net

unts receivable, net A.
Account receivables Less: loss allowance Total	30 Sep2023 $7,258,272 (210,819) $7,047,453	31 Dec 2022	30 Sep2022
		$4,160,600 (168,580)	$4,560,655 (152,206)
		$3,992,020	$4,408,449

B. Accounts receivables were not pledged.
C. Trade receivables are generally on 90-150 day terms. The total carrying amount as of September 30, 2023, December 31, 2022 and September 30, 2022 were $7,258,272 thousand, $4,160,600 thousand and $4,560,655 thousand, respectively. The Group 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, consider the grouping 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 31~90 days 91~180 days >=181 days	Past due but not impaired 31~90 days 91~180 days >=181 days	Past due but not impaired 31~90 days 91~180 days >=181 days	Total
	31~90 days	91~180 days
$7,191,305 0%～5% 172,534	$28,021 1%～10% 280	$953 5%～20% 47	$37,993 50%～100% 37,958	$7,258,272 210,819
$7,018,771	$27,741	$906	$35	$7,047,453
$4,110,902 0%~5% 140,935	$7,519 1%~10% 75	$5,961 5%~20% 298	$36,218 50%~100% 27,272	$4,160,600 168,580
$3,969,967	$7,444	$5,663	$8,946	$3,992,020
$4,503,229 0%`～`5% 132,466	$20,269 1%`～`10% 203	$18,443 5%`～`20% 922	$18,714 50%`～`100% 18,615	$4,560,655 152,206
$4,370,763	$20,066	$17,521	$99	$4,408,449

～ 16 ～

D. Movement of the loss allowance table:

As of 1 Jan 2023 Charge for the current period Foreign exchange adjustments As of 30 Sep 2023 As of 1 Jan 2022 Charge for the current period Foreign exchange adjustments As of 30 Sep 2022	Collectively impaired $168,580 41,751 488 $210,819 $142,749 7,179 2,278 $152,206

E. The Group entered into a factoring agreement with the following banks to sell its accounts receivable. Under the agreement, the Group 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 Group does not have any continuing involvement in the transferred accounts receivable. Thus, the Group derecognized the transferred accounts receivable.

As of 30 September 2023, 31 December 2022 and 30 September 2022, other receivables from banks incurred by accounts receivable factoring amounted to $433,879 thousand, $155,123 thousand and $265,645 thousand, respectively.

As of 30 September 2023, 31 December 2022 and 30 September 2022, the relevant information of accounts receivable factored and 17erecognized by the Group is as follows:

(a) 30 September 2023:

The Factor (Transferee) E.SUN CTBC Total	Interest Rate (%) －－	Accounts receivable factoring not yet due(in thousands) $11,258 2,187 $13,445	Amount received (in thousands) －－－	Retention (recognized as other receivables) (in thousands) $11,258 2,187 $13,445	Credit Limit (in thousands)
					$100,000 20,000
					$120,000

～ 17 ～

(b) 31 December 2022:

The Factor (Transferee) E.SUN CTBC Total	Interest Rate (%) 5.127%~ 5.325% 5.3911%~ 5.4043%	Accounts receivable factoring not yet due(in thousands) $31,484 11,610 $43,094	Amount received (in thousands) $27,594 10,449 $38,043	Retention (recognized as other receivables) (in thousands) $3,890 1,161 $5,051	Credit Limit (in thousands)
					$100,000 20,000
					$120,000

(c) 30 September 2022:

The Factor (Transferee) E.SUN CTBC Total	Interest Rate (%) 4.1230% 4.0424%~ 4.0559%	Accounts receivable factoring not yet due(in thousands) $53,586 16,790 $70,376	Amount received (in thousands) $46,900 15,109 $62,009	Retention (recognized as other receivables) (in thousands) $6,686 1,681 $8,367	Credit Limit (in thousands)
					$110,000 20,000
					$130,000

- (5)Other receivables and other receivables related parties

30 Sep2023	31 Dec 2022	30 Sep2022
$59,127 599,489 (16,446)	$52,356 303,699 (13,135)	$72,239 445,556 (14,347)
642,170	342,920	503,448
9,954	8,895	12,181
$652,124	$351,815	$515,629

B. The Group follows the requirement of IFRS 9 to assess the impairment. The Group measures the loss allowance of its other receivables at an amount equal to lifetime expected credit losses, condsiders the grouping 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.

～ 18 ～

C. Movement of the loss allowance table:

Movement of the loss allowance table:
As of 1 Jan 2023 Charge for the current period Foreign exchange adjustments As of 30 Sep 2023 As of 1 Jan 2022 Charge for the current period Foreign exchange adjustments As of 30 Sep 2022	Collectively impaired
	$13,135 3,265 46
	$16,446
	$13,737 368 242
	$14,347

(6)Inventories

A.

tories .
Raw materials Work in progress Finished goods Total	30 Sep2023	31 Dec 2022	30 Sep2022
	$3,505,340 1,526,625 11,116,745	$3,607,360 1,109,560 12,642,852	$4,347,224 1,455,091 13,857,753
	$16,148,710	$17,359,772	$19,660,068

B. Expenses and losses incurred on inventories for the three-month periods ended September 30 2023 and 2022 and for the nine-month periods ended September 30 2023 and 2022 were as follows:

For the three-month periods ended September 30	For the three-month periods ended September 30	For the nine-month periods ended September 30	For the nine-month periods ended September 30
2023	2022	2023	2022
$12,222,551 66,462 64,284	$11,526,717 247,013 88,908	$33,510,836 15,043 205,738	$32,488,976 490,465 204,802
$12,353,297	$11,862,638	$33,731,617	$33,184,243

C. No inventories were pledged.

(7)Prepayments

repayments
Payment in advance Other prepaid expenses Total	30 Sep2023 $490,299 73,816 $564,115	31 Dec 2022 $658,480 48,981 $707,461	30 Sep2022
			$880,340 88,453
			$968,793

～ 19 ～

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

Debt instrument investments measured at fair value through other comprehensive income – Non-current: Unlisted companies stocks	30 Sep 2023	31 Dec 2022	30 Sep 2022
	$167,004	$137,638	$140,563

Financial assets at fair value through other comprehensive income were not pledged.

(9)Investments accounted for under the equity method

A. The following table lists the investments in associates of the Group:

Investees	30 Sep 2023	30 Sep 2023	31 Dec 2022	31 Dec 2022	30 Sep 2022	30 Sep 2022
	Carrying amount	Percentage of ownership (%)	Carrying amount	Percentage of ownership (%)	Carrying amount	Percentage of ownership (%)
Investments in associates: ZIMAG TECHNOLOGY CO., INC. (Note 1) FURUKAWA AVC ELECTRONICS (SUZHOU) CO., LTD. ZHUZHOU CRRC-AVC THERMAL TECHNOLOGY CO., LTD. KEY APPLICATION TECHNOLOGY CO., LTD. (Note 2) PAROGON SEMICONDUCTOR LIGHTING TECHNOLOGY Total	$49,870 153,866 109,280 － 49,018	9.53％ 30.00％ 25.00％ 16.31`％` 40.00％	$50,818 98,316 106,564 `－` －	9.53`％` 30.00`％` 25.00`％` 16.31`％` －	$48,901 101,155 107,698 －－	9.53`％` 30.00`％` 25.00`％` 16.31`％` －
	$362,034		$255,698		$257,754

Note 1: The Group evaluated and concluded that it has significant influence over Innovision, thus, this investment of the Group used the equity method for evaluation.

Note 2: The Group evaluated and concluded that it has significant influence over Innovision, thus, this investment of the Group used the equity method for evaluation.

～ 20 ～

Investments accounted for using the equity method of the Company and its subsidiaries, were $362,034 thousand, $255,698 thousand and $257,754 thousand as of 30 September 2023, 31 December 2022 and 30 September 2022, respectively. For the three-month periods ended 30 September 2023 and 2022 and for the nine-month periods ended 30 September 2023 and 2022, the related shares of investment (loss) income from the associates were $32,297 thousand, $26,278 thousand, $72,584 thousand and $31,946 thousand, respectively. The related shares of other comprehensive income from the associates were $(966) thousand, $(5,817) thousand, $(6,324) thousand and $(9,845) thousand, which were based solely on the financial reports of other independent accountants.

None of the aforementioned associates were pledged.

B. Financial information of associates:

There is no individually significant associate for the Group. When an associate is a foreign operation, and the functional currency of the foreign entity is different from the Group, an exchange difference arising from translation of the foreign entity will be recognized in other comprehensive income (loss).

The aggregate financial information of the Group’s investments in its joint ventures is as follows:

For the three-month periods ended September 30 2023 2022 $ 32,297 $26,278 (966) (5,817) $31,331 $20,461	For the nine-month periods ended September 30	For the nine-month periods ended September 30
2023	2023	2022
$ 32,297 (966)	$72,584 (6,324)	$31,946 (9,845)
$31,331	$66,260	$22,101

～ 21 ～

(10)Property, plant and equipment

0)Property, plant and equipment
Owner occupied property, plant and equipment	30 Sep 2023	31 Dec 2022	30 Sep 2022
	$11,253,671	$9,694,096	$9,072,704

A. Owner occupied property, plant and equipment

Land	Buildings	Machinery and equipment	Molding equipment	Other facilities	Construction in progress and equipment awaiting examination	Total
$167,151 `－` `－` `－` `－`	$3,365,191 512,702 － (60,948) 36,944	$7,348,096 1,329,477 (162,990) － (57,708)	$846,333 110,006 (107,675) `－` 62,247	$3,396,428 846,212 (74,941) `－` 88,022	$1,440,945 (127,959) `－` `－` 10,177	$16,564,144 2,670,438 (345,606) (60,948) 139,682
$167,151	$3,853,889	$8,456,875	$910,911	$4,255,721	$1,323,163	$18,967,710
`－` `－` `－` `－` `－` `－`	$1,070,817 86,598 －－ (21,117) 17,809	$3,084,204 565,958 38,435 (85,337) `－` (93,780)	$737,437 92,550 `－` (107,082) `－` (11,405)	$1,977,590 424,675 `－` (68,831) `－` 5,518	`－` `－` `－` `－` `－` `－`	$6,870,048 1,169,781 38,435 (261,250) (21,117) (81,858)
`－`	$1,154,107	$3,509,480	$711,500	$2,338,952	`－`	$7,714,039

〜 22 〜

Land	Buildings	Machinery and equipment	Molding equipment	Other facilities	Construction in progress and equipment awaiting examination	Total
$167,151 `－` `－` `－` `－`	$3,304,819 8,721 (2,920) `－` 126,647	$6,302,197 884,515 (484,017) `－` 143,106	$928,372 62,433 (126,213) `－` 26,476	$3,002,298 416,167 (148,847) `－` 77,259	$204,132 1,074,104 `－` `－` 52,108	$13,908,969 2,445,940 (761,997) `－` 425,596
$167,151	$3,437,267	$6,845,801	$891,068	$3,346,877	$1,330,344	$16,018,508
`－` `－` `－` `－` `－` `－`	$942,969 76,388 `－` (430) `－` 59,583	$2,862,849 474,107 38,737 (297,259) `－` 111,149	$695,325 165,784 `－` (125,789) `－` 20,623	$1,696,692 317,407 `－` (134,485) `－` 42,154	`－` `－` `－` `－` `－` `－`	$6,197,835 1,033,686 38,737 (557,963) `－` 233,509
`－`	$1,078,510	$3,189,583	$755,943	$1,921,768	`－`	$6,945,804
$167,151	$2,699,782	$4,947,395	$199,411	$1,916,769	$1,323,163	$11,253,671
$167,151	$2,294,374	$4,263,892	$108,896	$1,418,838	$1,440,945	$9,694,096
$167,151	$2,358,757	$3,656,218	$135,125	$1,425,109	$1,330,344	$9,072,704

～ 23 ～

B. The Group has evaluated the value of some machinery and equipment has been impaired, and impairment losses are recognized amounted to NT38,435 thousand and NT$38,737 thousand for the years ended 30 September 2023 and 2022, respectively. The recoverable amount is the difference between fair value and disposal cost, this fair value measurement is categorized under Level 3.
C. Please refer to Note 8 for more details on property, plant and equipment under pledge.

(11)Investment property

Investment property includes the Group’s own occupied investment property and the investment property held by the Group with the right-of-use assets. The Group enters into commercial property leasing contracts for its own investment property with a leasing period ranging from 1 to 10 years. The lease contract includes provisions for adjusting the rent based on the annual market environment.

Cost`：` As of 1 Jan 2023 Additions Transfers and reclassifications Exchange differences As of 30 Sep 2023 As of 1 Jan 2022 Additions Transfers and reclassifications Exchange differences As of 30 Sep 2022 Depreciation and impairment: As of 1 Jan 2023 Depreciation Transfers and reclassifications Exchange differences As of 30 Sep 2023 As of 1 Jan 2022 Depreciation Transfers and reclassifications Exchange differences As of 30 Sep 2022 Net carrying amount as at: As of 30 Sep 2023 As of 31 Dec 2022 As of 30 Sep 2022	Land $8,769 `－` `－` `－` $8,769 $8,769 `－` `－` `－` $8,769 `－` `－` `－` `－` `－` `－` `－` `－` `－` `－` $8,769 $8,769 $8,769	Buildings $182,921 － 60,948 600 $244,469 $180,637 `－` `－` 2,113 $182,750 $91,823 2,956 21,117 133 $116,029 $86,910 2,617 `－` 383 $89,910 $128,440 $91,098 $92,840	Total
			$191,690 － 60,948 600
			$253,238
			$189,406 `－` `－` 2,113
			$191,519
			$91,823 2,956 21,117 133
			$116,029
			$86,910 2,617 `－` 383
			$89,910
			$137,209
			$99,867
			$101,609

～ 24 ～

For the three-month periods ended September 30	For the three-month periods ended September 30	For the nine-month periods ended September 30	For the nine-month periods ended September 30
2023	2022	2023	2022
$6,271 (1,682)	$4,337 (1,444)	$16,115 (4,562)	$13,186 (4,329)
$4,589	$2,893	$11,553	$8,857

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

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

(12)Intangible assets

(12)Intangible assets
Cost: As of 1 Jan 2023 Addition Disposals Transfers and reclassifications Exchange differences As of 30 Sep 2023 As of 1 Jan 2022 Addition Disposals Transfers and reclassifications Exchange differences As of 30 Sep 2022 Amortization and impairment: As of 1 Jan 2023 Amortization Disposals Transfers and reclassifications Exchange differences As of 30 Sep 2023	Computer software	Patents	License fee	Goodwill	Total
	$394,347 76,279 (1,577) － 1,332	$5,185 －－－－	$25,679 －－－－	$7,107 －－－－	$432,318 76,279 (1,577) － 1,332
	$470,381	$5,185	$25,679	$7,107	$508,352
	$356,830 22,344 (48) `－` 7,922	$5,185 `－` `－` `－` `－`	$25,679 `－` `－` `－` `－`	$7,107 `－` `－` `－` `－`	$394,801 22,344 (48) `－` 7,922
	$387,048	$5,185	$25,679	$7,107	$425,019
	$264,774 42,431 (1,417) － 875	$5,185 －－－－	$21,150 657 －－－	$7,107 －－－－	$298,216 43,088 (1,417) － 875
	$306,663	$5,185	$21,807	$7,107	$340,762

～ 25 ～

Computer

	Computer
As of 1 Jan 2022 Amortization Disposals Transfers and reclassifications Exchange differences As of 30 Sep 2022 Net carrying amount as at: 30 Sep 2023 31 Dec 2022 30 Sep 2022	software	Patents	License fee	Goodwill	Total
	$211,462 40,575 (48) `－` 5,289	$5,185 `－` `－` `－` `－`	$20,274 658 `－` `－` `－`	$7,107 `－` `－` `－` `－`	$244,028 41,233 (48) `－` 5,289
	$257,278	$5,185	$20,932	$7,107	$290,502
	$163,718	－	$3,872	－	$167,590
	$129,573	`－`	$4,529	`－`	$134,102
	$129,770	`－`	$4,747	`－`	$134,517

Amortization expense of intangible assets under the statement of comprehensive income:

For the three-month periods ended For the nine-month periods ended

	For the three-month periods ended	For the three-month periods ended	For the nine-month periods ended	For the nine-month periods ended
Operating costs Operating expenses	September 30		September 30
	2023 $1,946 $15,601	2022	2023	2022
		$2,068	$5,840	$6,200
		$11,722	$37,248	$35,033

(13)Other non-current assets

Advance payments in equipments Refundable deposits Other advance Other non-current assets – other Total	30 Sep2023	31 Dec 2022	30 Sep2022
	$905,476 205,561 132,845 6,435	$1,276,214 207,398 `－` 2,166	$1,640,260 206,126 `－` 2,440
	$1,250,317	$1,485,778	$1,848,826

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

- (14)Short term borrowings

Unsecured bank loans	30 Sep2023	31 Dec 2022	30 Sep2022
	$6,765,893	$6,294,019	$6,750,197

B. Interest rate ranges are within 1.6500%~6.4300% , 1.3700%~5.6500% and 1.1303%~3.9441% as of 30 September 2023, 31 December 2022 and 30 September 2022, respectively.
C. As of 30 September 2023, 31 December 2022 and 30 September 2022, unused short-term lines of credit were $16,253,685 thousand, $13,635,705 thousand and $12,212,971 thousand, respectively.

～ 26 ～

(15)Other payables

Salaries and bonus Employee’s compensation and remuneration of directors Others Total 16)Corporate Bonds payable 5 year secured bonds – issued at par value. Issued in August 2020. Interest at 0.62%, bullet repayment, payable annually. Less: current portion Ending balance	30 Sep 2023 31 Dec 2022 30 Sep 2022 $2,531,819 $2,015,224 $2,030,370 476,826 293,002 369,671 3,130,639 2,520,464 2,486,204 $6,139,284 $4,828,690 $4,886,245 30 Sep 2023 31 Dec 2022 30 Sep 2022 Collateral $2,400,000 $2,400,000 $2,400,000 Bank guarantee `－` `－` `－` $2,400,000 $2,400,000 $2,400,000	30 Sep 2023 31 Dec 2022 30 Sep 2022 $2,531,819 $2,015,224 $2,030,370 476,826 293,002 369,671 3,130,639 2,520,464 2,486,204 $6,139,284 $4,828,690 $4,886,245 30 Sep 2023 31 Dec 2022 30 Sep 2022 Collateral $2,400,000 $2,400,000 $2,400,000 Bank guarantee `－` `－` `－` $2,400,000 $2,400,000 $2,400,000	30 Sep 2023 31 Dec 2022 30 Sep 2022 $2,531,819 $2,015,224 $2,030,370 476,826 293,002 369,671 3,130,639 2,520,464 2,486,204 $6,139,284 $4,828,690 $4,886,245 30 Sep 2023 31 Dec 2022 30 Sep 2022 Collateral $2,400,000 $2,400,000 $2,400,000 Bank guarantee `－` `－` `－` $2,400,000 $2,400,000 $2,400,000	30 Sep 2023 31 Dec 2022 30 Sep 2022 $2,531,819 $2,015,224 $2,030,370 476,826 293,002 369,671 3,130,639 2,520,464 2,486,204 $6,139,284 $4,828,690 $4,886,245 30 Sep 2023 31 Dec 2022 30 Sep 2022 Collateral $2,400,000 $2,400,000 $2,400,000 Bank guarantee `－` `－` `－` $2,400,000 $2,400,000 $2,400,000
	$2,400,000 `－`	$2,400,000 `－`	$2,400,000 `－`	Bank guarantee
	$2,400,000	$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

(17)Long-term borrowings
Unsecured Long-Term Loan from Taiwan Cooperative Bank Unsecured Long-Term Loan from Taiwan Cooperative Bank Unsecured Long-Term Loan from Taiwan Cooperative Bank Unsecured Long-Term Loan from Shanghai Commercial & Savings Bank Unsecured Long-Term Loan from Shanghai Commercial & Savings Bank	30 Sep 2023	31 Dec 2022	30 Sep 2022	Redemption
	$105,000 187,500 437,500 50,000 100,000	$150,000 243,750 － 87,500 175,000	$165,000 262,500 － 100,000 200,000	Effective 17 Jun 2020 to 17 Jun 2025. Five-year loan: principal is repaid in 20 quarterly payments with monthly interest payments. Effective 25 Mar 2022 to 24 Mar 2026. Four-year loan: principal is repaid in 16 quarterly payments with monthly interest payments. Effective 9 Feb 2023 to 8 Feb 2027. Four-year loan: principal is repaid in 16 quarterly payments with monthly interest payments. Effective 17 Sep 2021 to 17 Sep 2024. Three-year loan: interest-only payment for the first year. Principal is repaid in 8 quarterly payments with monthly interest payments. Effective 25 Oct 2021 to 17 Sep 2024. Three-year loan: interest-only payment for the first year. Principal is repaid in 8 quarterly payments with monthly interest payments.

〜 27 〜

Unsecured Long-Term Loan from Taipei Fubon Bank Unsecured Long-Term Loan from Hua Nan Bank Unsecured Long-Term Loan from Yuanta Commercial Bank Unsecured Long-Term Loan from Taipei Fubon Bank (original Jih Sun Bank) Unsecured Long-Term Loan from Cathay United Bank Unsecured Long-Term Loan from Bank of Taiwan Unsecured Long-Term Loan from Taiwan Business Bank Unsecured Long-Term Loan from Export-Import Bank of the Republic of China	30 Sep 2023	31 Dec 2022	30 Sep 2022	Redemption
	－ $120,000 －－ `－` －－ 250,000	$100,000 120,000 240,000 132,000 300,000 141,666 166,667 250,000	$100,000 － 300,000 166,000 300,000 166,666 197,917 250,000	Effective 23 Jun 2021 to 31 Dec 2023. Three-year loan: split loan is available. The first period begins 18 months after first allocation. 16% of the principal is repaid in quarterly payments with monthly interest payments and the remaining principal is repaid on the maturity date. Effective 21 Oct 2022 to 21 Oct 2025. Three-year loan: principal is repaid in monthly payments with monthly interest payments. Effective 7 Sep 2020 to 7 Sep 2023. Three-year loan: split loan 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. Effective 19 Nov 2021 to 19 Nov 2023. Two-year loan: principal is amortized on a quarterly basis, and interest is paid on a monthly basis. Revolving credit for 2 years from 12 Sep 2022 to 12 Sep 2024. Effective 25 May 2021 to 25 May 2024. Three-year loan: interest-only payment for the first year. Principal is repaid with monthly interest payments. Effective 1 Apr 2020 to 1 Apr 2024. Four-year loan: principal is repaid with monthly interest payments. Effective 21 Dec 2021 to 21 Dec 2027. Six-year loan: interest-only payment for 30 months. Principal is amortized on a six-month basis with quarterly interest payments.

〜 28 〜

Unsecured Long-Term Loan from E. Sun Bank Unsecured Long-Term Loan from E. Sun Bank Unsecured Long-Term Loan from Taiwan Cooperative Bank Unsecured Long-Term Loan from Land Bank of Taiwan Unsecured Long-Term Loan from Export-Import Bank of the Republic of China Unsecured Long-Term Loan from Taiwan Business Bank Unsecured Long-Term Loan from HSBC Commercial Bank Unsecured Long-Term Loan from HSBC Commercial Bank Unsecured Long-Term Loan from DBS Bank Unsecured Long-Term Loan from First Commercial Bank	30 Sep 2023	31 Dec 2022	30 Sep 2022	Redemption
	－ $500,000 － 224,999 770,000 343,750 － 100,000 `－` 10,666	$175,000 － 105,000 300,000 770,000 437,500 600,000 － 500,000 13,333	$200,000 － 120,000 `－` 770,000 468,750 600,000 － 500,000 14,333	payments. Effective 16 Sep 2021 to 16 Sep 2024. Three-year loan: principal is amortized on a quarterly basis, and interest is paid on a monthly basis. Effective 25 Aug 2023 to 25 Aug 2026. Three-year loan: principal is amortized on a quarterly basis, and interest is paid on a monthly basis. Effective 3 Sep 2019 to 3 Sep 2024. Five-year loan: principal is repaid in quarterly payments with monthly interest payments. Effective 12 Dec 2022 to 12 Dec 2025. Three-year loan: principal is repaid in monthly payments with interest. Effective 11 Apr 2022 to 11 Apr 2028. Six-year loan: interest-only payment for 30 months. Principal is amortized on a six-month basis with quarterly interest payments. Effective 17 Jun 2022 to 17 Jun 2026. Four-year loan: principal is repaid in monthly payments with monthly interest payments. Effective 30 Aug 2022 to 26 Aug 2024. Two-year loan: monthly interest payments. Effective 12 Sep 2023 to 26 Aug 2024. Two-year loan: monthly interest payments. 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. Effective 29 Apr 2021 to 29 Apr 2026. Five-year loan: principal is repaid in monthly payments with monthly interest payments.

～ 29 ～

30 Sep 2023	31 Dec 2022	30 Sep 2022	Redemption
$22,667 －－－ 315,566 315,566	$28,667 40,947 241,841 241,841 304,595 －	$30,667 47,625 285,750 285,750 －－	Effective 8 Jul 2021 to 8 Jul 2026. Five-year loan: principal is repaid in monthly payments with monthly interest payments. Effective 20 Dec 2021 to 20 Dec 2024. Three-year loan: Principal is amortized on a quarterly basis. Effective 27 Jul 2021 to 27 Jul 2024. Three-year loan: interest-only payment for the first year. Principal is amortized on a quarterly basis. Effective 9 Sep 2021 to 9 Sep 2024. Three-year loan: interest-only payment for the first year. Principal is amortized on a quarterly basis. Effective 24 Oct 2022 to 23 Oct 2027. Five-year loan: interest-only payment for the first year. Principal is amortized on a quarterly basis with quarterly interest payments. Effective 20 Jul 2023 to 19 Jul 2026. Three-year loan: interest-only payment for the first year. Principal is amortized on a quarterly basis with quarterly interest payments.
3,853,214 (872,482)	5,865,307 (1,675,864)	5,530,958 (1,597,916)
$2,980,732	$4,189,443	$3,933,042
1.6000%`～` 6.3200%	1.3905%`～` 6.0994%	1.1150%`～` 4.8626%

～ 30 ～

(18)Long-term deferred revenue

Government grants were as follows:

Long-term deferred revenue Government grants were as follows:
Beginning balance Released to the statement of comprehensive income Exchange differences Ending balance	For the nine-monthperiods ended September 30
	2023	2022
	$705,691 (20,606) 1,127	$722,619 (20,769) 21,515
	$686,212	$723,365

Government grants have been received for the purchase of certain items of property, plant and equipment.

- (19)Post employment benefits

A. Defined contribution plan

Expenses under the defined contribution plan for the three-month periods ended 30 September 2023 and 2022 are $8,243 thousand and $8,258 thousand, respectively; for the nine-month periods ended 30 September 2023 and 2022 are $24,104 thousand and $24,532 thousand, respectively.

B. Defined benefits plan

Costs under the defined benefits plan for the three-month periods ended 30 September 2023 and 2022 are $662 thousand and $645 thousand, respectively; for the nine-month periods ended 30 September 2023 and 2022 are $2,010 thousand and $1,955 thousand, respectively.

(20)Equities

A. Common stock

As of 30 September 2023, 31 December 2022 and 30 September 2022, the Group’s authorized 、 capital was $6,000,000 thousand, and issued $3,833,101 thousand $3,533,101 thousand and 、 $3,533,101 thousand with 383,310 thousand shares 353,310 thousand shares and 353,310 thousand shares, respectively. Each at a par value of $10. Each share has one voting right and a right to receive dividends.

On November 11, 2022, the Company convened the Board of Directors and resolved to issue 30,000 thousand new shares in cash capital increase.The par value is 10 per share and is issued at NT$95 per share. This cash capital increase and issuance of new shares, It has been Financial Supervisory Commission approved the declaration on January 16, 2023, And will take April 17, 2023 as the base date for capital increase, and complete the change registration at April 27, 2023.

B. Additional paid-in capital

Additional paid-in capital
Share premium Difference between consideration and carrying amount of subsidiaries acquired or disposed Donated assets received Premium from merger Employee stock option Share options of convertible bonds Total	30 Sep2023	31 Dec 2022	30 Sep2022
	$2,581,008 72,336 3,637 443,730 475,826 23,292	$348,987 72,336 3,386 443,730 114,908 23,292	$348,987 72,336 3,386 443,730 114,908 23,292
	$3,599,829	$1,006,639	$1,006,639

～ 31 ～

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.
(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.

～ 32 ～

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 Group has not reversed special reserve for the nine-month periods ended 30 September 2023 and 2022 as results of the no use, disposal or reclassification of related assets. As of 30 September 2023 and 2022, special reserve set aside for the first-time adoption of TIFRS amounts to $95,481 thousand.

Details of the 2022 and 2021 earnings distribution and dividends per share as approved and resolved by the shareholders’ meeting on 15 June, 2023 and 17 June 2022, respectively, are as follows:

Legal reserve Special reserve Common stock - cash dividend	Appropriation of earnings	Dividendper share(NT$)	Dividendper share(NT$)
	2022 2021 $417,715 $293,223 (325,374) 118,572 1,596,962 1,165,924	2022	2021
		$4.17	$3.3

The shareholders’ meeting was on 15 June, 2023 and 17 June, 2022 resolved to distribute $317,979 thousand and $353,310 thousand from capital surplus to shareholders in the form of cash. Shareholders are entitled to receive $0.83 and $1.00 per share.

Please refer to Note 6.24 for further details on employees’ compensation and remuneration to directors and supervisors.

D. Non-controlling interests

Beginning balance Profit attributable to non-controlling interests Other comprehensive income, attributable to non-controlling interests, net of tax: Exchange differences resulting from translating the financial statements of a foreign operation Increasing(decreasing) in non-controlling interests Ending balance		For the nine-monthperiods ended September 30	For the nine-monthperiods ended September 30
		2023	2022
		$1,926,648 365,238 5,924 (195,268)	$1,671,627 334,319 41,877 (219,677)
		$2,102,542	$1,828,146

～ 33 ～

- (21)Share based payment

Certain employees of the Group 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. 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 Group 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 of grant 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)
			$52.44 $150

The following table lists the inputs to the model used for the plan granted during January 1 to September 30, 2023:

Dividend yield(%) Expected volatility(%) Risk-free interest rate(%) Expected option life(year) Price of the grant date($) Strike price($) Option pricing model	June 29,2023 `－` 40.36% 1.16% 10 years 150 150 Binomial option pricing model	July7,2022
		`－` 36.89% 1.2462% 10 years 52.44 52.44 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.

～ 34 ～

The further details of the Group for the nine-periods ended September 30 2023 on the aforementioned share-based payments plan were as follows:

For the nine-month periods ended September 30

Stock option	Number of share options outstanding	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 －－	$52.44 150 `－` `－` `－` `－`	$52.44 150 `－` `－`	8.76years 9.74years `－` `－`
	16,689
	16,689

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

For the nine-month periods ended September 30 Expenses incurred on share-based payment transactions (equity-settled share-based payments transactions) $360,918

(22)Operating revenues

A. Disaggregation of revenue

For the three-month periods ended September 30	For the three-month periods ended September 30	For the three-month periods ended September 30	For the nine-month periods ended September 30	For the nine-month periods ended September 30
2023		2022	2023	2022
$15,768,820		$14,882,645	$42,474,247	$41,239,538
$15,768,820		$14,882,645	$42,474,247	$41,239,538
			31 Dec 2022	30 Sep2022 $13,060
	$254		$5,439

During the period, contract liabilities significantly decreased as performance obligations are partially satisfied and $5,439 thousand included in the contract liability balance at the beginning of the period was recognized as revenue during the period.

～ 35 ～

(23)Lease

A. Group as a lessee

The Group leases various properties, including real estate such as land and buildings, machinery and equipment and office equipment. The lease terms range from 1 to 50 years.

The Group’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	30 Sep2023	31 Dec 2022	30 Sep2022
	$719,299 1,016,202 12,644	$727,653 1,131,904 15,029	$735,377 1,185,383 18,040
	$1,748,145	$1,874,586	$1,938,800

During the nine-month period ended 30 September 2023, the Group’s additions to right-ofuse assets amounted to $25,358 thousand.

II. Lease liabilities

Lease liabilities
Current Non-current Total	30 Sep 2023	31 Dec 2022 $237,049 1,026,275 $1,263,324	30 Sep2022
	$225,809 925,535		$235,799 1,077,655
	$1,151,344		$1,313,454

Please refer to Note 6.25(4) for the interest on lease liabilities recognized during the ninemonth period ended 30 September 2023 and refer to Note 12.5 Liquidity Risk Management for the maturity analysis for lease liabilities as of 30 September 2023.

(b) Amounts recognized in the statement of profit or loss Depreciation charge for right-of-use assets

For the three-month periods ended September30	For the three-month periods ended September30	For the nine-month periods ended September30	For the nine-month periods ended September30
2023	2022	2023	2022 $15,316 178,912 7,849 $202,077
$4,669 58,821 2,951	$4,620 61,489 2,766	$13,931 181,666 8,601
$66,441	$68,875	$204,198

The expenses relating to short-term leases	For the three-month periods ended September30	For the three-month periods ended September30	For the nine-month periods ended September30	For the nine-month periods ended September30
	2023	2022	2023	2022
	$12,969	$16,806	$38,546	$41,832

(d) Cash outflow relating to leasing activities

During the nine-month period ended 30 September 2023, the Group’s total cash outflows for leases amounting to $223,255 thousand.

～ 36 ～

B. Group as a lessor - Operating leases (applicable to the disclosure requirement in IFRS 16) Please refer to Note 6.11 for relevant disclosure of the Group'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 ncome relating to fixed lease payments and variable lease payments that depend on an index or a rate	For the three-month periods ended September 30	For the three-month periods ended September 30	For the nine-month periods ended September 30	For the nine-month periods ended September 30
	2023	2022	2023	2022
	$7,809	$7,295	$20,741	$24,174

Please refer to Note 6.11 for relevant disclosure of property, plant and equipment for operating leases under IFRS 16. For operating leases entered by the Group, the undiscounted lease payments to be received and a total of the amounts for the remaining years as of 30 September 2023 are as follow:

follow:
Not later than one year Later than one year and not later than five years Later than five years Total	30 Sep2023	31 Dec 2022	30 Sep2022
	$21,230 56,064 `－`	$18,016 42,556 `－`	$12,737 42,191 `－`
	$77,294	$60,572	$54,928

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

Function Nature		For the three-monthperiods ended September 30	For the three-monthperiods ended September 30	For the three-monthperiods ended September 30	For the three-monthperiods ended September 30
		2023			2022
	Operating costs	Operating expenses	Total amount	Operating costs	Operating expenses	Total amount
Employee benefits expense
Salaries	$1,275,581	$737,180	$2,012,761	$1,204,891	$724,275	$1,929,166
Labor and health insurance	$98,820	$40,759	$139,579	$101,007	$37,809	$138,816
Pension	$865	$8,040	$8,905	$1,289	$7,614	$8,903
Other employee benefits expense	$27,756	$18,208	$45,964	$30,703	$16,590	$47,293
Depreciation	$415,025	$82,820	$497,845	$349,085	$73,814	$422,899
Amortization	$1,911	$16,072	$17,983	$2,831	$11,122	$13,953

Function Nature		For the nine-monthperiods ended September 30	For the nine-monthperiods ended September 30	For the nine-monthperiods ended September 30	For the nine-monthperiods ended September 30
		2023			2022
	Operating costs	Operating expenses	Total amount	Operating costs	Operating expenses	Total amount
Employee benefits expense
Salaries	$3,531,778	$2,153,473	$5,685,251	$4,171,127	$2,053,503	$6,224,630
Labor and health insurance	$285,106	$121,301	$406,407	$297,233	$113,870	$411,103
Pension	$2,754	$23,360	$26,114	$3,678	$22,809	$26,487
Other employee benefits expense	$73,356	$52,604	$125,960	$91,965	$44,015	$135,980
Depreciation	$1,138,966	$237,969	$1,376,935	$1,019,288	$219,092	$1,238,380
Amortization	$5,842	$38,461	$44,303	$7,634	$34,246	$41,880

～ 37 ～

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 and supervisors. 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 and supervisors for the three-month and nine-month periods ended 30 September 2023 to be $63,096 thousand, $27,042 thousand, $169,070 thousand and $72,459 thousand, respectively. The Company estimated the amounts of employees’ compensation and remuneration to directors and supervisors for three-month and nine-month periods ended 30 September 2022 to be $57,152 thousand, $24,494 thousand, $134,085 thousand and $57,465 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.

The Company's 2022 and 2021 employee compensation and director's compensation reported by the shareholders' meeting on 15 June 2023 and 17 June 2022 are as follows:

Employee compensation Remuneration to directors and supervisors	2022 2021 $178,639 $130,791 76,559 56,053

The distribution was passed by the Board of Directors meeting held on 13 March, 2023 to distribute NT$178,639 thousand and NT$76,559 thousand in cash as employee compensation and remuneration to directors and supervisors of 2022, which has no material differences between the expense listed in the financial report of 2022.

No material differences exist between the estimated amount and the actual distribution of the employee compensation and remuneration to directors and supervisors for the year ended 31 December, 2022 and 2021.

～ 38 ～

- (25)Non operating income and expenses

A. Interest income

For the three-month periods ended September 30	For the three-month periods ended September 30	For the nine-month periods ended September 30	For the nine-month periods ended September 30
2023	2022	2023	2022
$74,003 1,591 11	$12,659 1,494 7	$238,428 4,175 34	$31,847 4,838 20
$75,605	$14,160	$242,637	$36,705

B. Other income

For the three-month periods ended September 30	For the three-month periods ended September 30	For the nine-month periods ended September 30	For the nine-month periods ended September 30
2023	2022	2023	2022
$7,809 128,163	$7,295 215,071	$20,741 467,474	$24,174 437,690
$135,972	$222,366	$488,215	$461,864

C. Other gains and losses

For the three-month periods ended September 30	For the three-month periods ended September 30	For the nine-month periods ended September 30	For the nine-month periods ended September 30
2023	2022	2023	2022
($47,135) － 44,591 (12,734) (8,366)	($40,462) (27,665) 36,623 (12,922) (9,559)	($38,250) － 155,651 (38,435) (26,531)	($189,728) (27,580) 95,337 (38,737) (25,154)
($23,644)	($53,985)	$52,435	($185,862)

D. Finance costs

For the three-month periods ended September 30	For the three-month periods ended September 30	For the nine-month periods ended September 30	For the nine-month periods ended September 30
2023	2022	2023	2022
$92,076 3,720 9,830 2	$47,322 3,720 13,062 9,757	$272,420 11,160 30,951 12,118	$94,051 11,160 40,274 22,101
$105,628	$73,861	$326,649	$167,586

～ 39 ～

(26)Components of other comprehensive income

For the three - month period ended 30 September 2023:

Arising during the period	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
($1,112) 660,067 (966)	`－` `－` `－`	($1,112) 660,067 (966)	`－` ($99,178) `－`	($1,112) 560,889 (966)
$657,989	`－`	$657,989	($99,178)	$558,811
		Other comprehensive income, before tax	Income tax relating to components of other comprehensive income	Other comprehensive income, net of tax
$880 131,582 (6,324)	`－` `－` `－`	$880 131,582 (6,324)	`－` ($1,083) `－`	$880 130,499 (6,324)
$126,138	`－`	$126,138	($1,083)	$125,055

～ 40 ～

For the three - month period ended 30 September 2022:

Not to be reclassified to equity in subsequent periods: Unrealized gain from equity instruments investments measured at fair value through other comprehensive income To be reclassified to profit or loss in subsequent periods: Exchange differences resulting from translating the financial statements of a foreign operation Share of other comprehensive income of associates accounted for using the equity method Total of other comprehensive income	Arising during the period	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
	$1,099 326,392 (5,817)	`－` `－` `－`	$1,099 326,392 (5,817)	`－` ($53,525) `－`	$1,099 272,867 (5,817)
	$321,674	`－`	$321,674	($53,525)	$268,149

For the nine - month period ended 30 September 2022:

Not to be reclassified to equity in subsequent periods: Unrealized gain from equity instruments investments measured at fair value through other comprehensive income To be reclassified to profit or loss in subsequent periods: Exchange differences resulting from translating the financial statements of a foreign operation Share of other comprehensive income of associates accounted for using the equity method Total of other comprehensive income	Arising during the period	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
	$2,825 800,861 (9,845)	`－` `－` `－`	$2,825 800,861 (9,845)	`－` ($120,904) `－`	$2,825 679,957 (9,845)
	$793,841	`－`	$793,841	($120,904)	$672,937

～ 41 ～

(27)Income tax

A. The major components of income tax expense are as follows:

Income tax expense recognized in profit or loss

For the three-month periods ended September 30	For the three-month periods ended September 30	For the nine-month periods ended September 30	For the nine-month periods ended September 30
2023	2022	2023	2022
$646,164 (11,971)	$651,627 (96,627)	$1,453,241 81,720	$1,549,159 (167,496)
$634,193	$555,000	$1,534,961	$1,381,663

B. Income tax relating to components of other comprehensive income

For the three-month periods ended September 30	For the three-month periods ended September 30	For the nine-month periods ended September 30	For the nine-month periods ended September 30
2023	2022	2023	2022
$99,178	$53,525	$1,083	$120,904
$99,178	$53,525	$1,083	$120,904

C. The assessment of income tax returns

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

(28)Earnings per share

28)Earnings per share
Basic earnings per share Profit attributable to ordinary equity holders of the Company (in thousand NT$) Assumed conversion of all dilutive potential ordinary shares Employees’ compensation Diluted earnings per share Profit attributable to ordinary equity holders of the Company (in thousand NT$)	For the nine-monthperiod ended September 30 2023 Amount Number of shares (shares in thousands) Earningsper share $3,633,903 372,408 $9.75 `－` 496 $3,633,903 372,904 $9.75
		Number of shares (shares in thousands) 372,408 496 372,904	Earningsper share
			$9.75
			$9.75

～ 42 ～

For the nine-month period ended September 30 2022

Amount Number of shares (shares in thousands) Earningsper share $3,081,020 353,310 $8.72 `－` 1,203 $3,081,020 354,513 $8.69 For the three-monthperiod ended September 30 2023	Amount Number of shares (shares in thousands) Earningsper share $3,081,020 353,310 $8.72 `－` 1,203 $3,081,020 354,513 $8.69 For the three-monthperiod ended September 30 2023	Earningsper share
		$8.72
		$8.69
Amount Number of shares (shares in thousands) Earningsper share $1,425,912 383,310 $3.72 `－` 185 $1,425,912 383,495 $3.72 For the three-monthperiod ended September 30 2022		Earningsper share
		$3.72
		$3.72
`～`43`～` Amount $1,239,001 `－` $1,239,001	Number of shares (shares in thousands) 353,310 513 353,823	Earningsper share
		$3.51
		$3.49

7. Related party transactions Key management personnel compensation

For the three-month periods endedSeptember30	For the three-month periods endedSeptember30	For the nine-month periods endedSeptember30	For the nine-month periods endedSeptember30
2023	2022	2023	2022
$29,904 303	$8,060 300	$54,297 906	$29,854 901
$30,207	$8,360	$55,203	$30,755

8. Assets pledged as security

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

	Carrying amount
30 Sep2023	31 Dec2022	30 Sep2022
$1,065,285 88,235 120,120 25,923 29,556 3,500	$1,591,337 88,235 126,014 26,475 30,977 3,500	$473,488 88,235 128,312 27,223 31,450 3,500
$1,332,619	$1,866,538	$752,208

9. Commitments and contingencies

(1) Legal claim contingency None.

(2) The Group signed the contract of the new plant in Vietnam for opreating purpose, which has 150 million dollars not paid until 30 September 2023.

(3) Other

The Group guaranteed a deposit for customs in the amount of $2,500 thousand and $1,000 thousand from Bank of Taiwan and Taiwan Cooperative Bank, respectively.

10. Losses due to major disasters

None.

11. Significant subsequent events

The investee of subsidiary FOSITEK CORP. of the Group, was passed by the Board of Directors meeting held on 31 October, 2022 to make a capital contribution to establish FOSITEK(VIETNAM) COMPANY LIMITED with a 100% ownership. On 11 October, 2023, outflow of investment amount of NT$59,429 thousand.

12. Financial instruments

(1)Categories of financial instruments

Financial assets

Financial instruments (1)Categories of financial instruments Financial assets
Financial assets at fair value through profit or loss: 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	30 Sep2023	31 Dec2022	30 Sep2022
	$167,004	$137,638	$140,563
	22,893,446 1,097,488 8,300,729	20,039,260 1,621,982 5,081,349	18,898,392 505,171 5,692,631
	$32,291,663	$26,742,591	$25,096,194
	$32,458,667	$26,880,229	$25,236,757

～ 44 ～

Financial liabilities

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	30 Sep2023	31 Dec 2022	30 Sep2022
	$6,765,893 23,127,090 2,400,000 3,853,214 1,151,344	$6,294,019 18,910,837 2,400,000 5,865,307 1,263,324	$6,750,197 22,018,269 2,400,000 5,530,958 1,313,454
	$37,297,541	$34,733,487	$38,012,878

(2)Financial risk management objectives and policies

The Group’s principal financial risk management objective is to manage the market risk, credit risk and liquidity risk related to its operating activates. The Group identifies measures and manages the aforementioned risks based on the Group’s policy and risk appetite.

The Group 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 Group complies with its financial risk management policies at all times.

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

The foreign currency sensitivity analysis of the possible change in foreign exchange rates on the Group’s profit is performed on significant monetary items denominated in foreign currencies as at the end of the reporting period. The Group’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 the nine-month periods ended 30 September 2023 and 2022 is decreased/increased by $50,844 thousand and decreased/increased by $561 thousand, respectively.
(b) When NTD strengthens/weakens against RMB by 1%, the profit for the nine-month periods ended 30 September 2023 and 2022 is decreased/increased by $11,347 thousand and increased/decreased by $12,513 thousand, respectively.

～ 45 ～

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 Group’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 Group 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 the nine-month periods ended 30 September 2023 and 2022 to decrease/ increase by $11,177 thousand and $4,929 thousand, respectively.

C. Equity price risk

The fair value of the Group’s unlisted equity securities are susceptible to market price risk arising from uncertainties about future values of the investment securities. The Group’s unlisted 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 nine-month periods ended 30 September 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 increase/ decrease by $8,350 thousand and $7,028 thousand, respectively.

Please refer to Note 12.8 for sensitivity analysis information of other equity instruments or derivatives that are linked to such equity instruments whose fair value measurement is categorized under Level 3.

(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 Group 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 Group’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 Group’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 30 September 2023, 31 December 2022 and 30 September 2022, amounts receivables from top ten customers represent 75.88%, 75.21% and 71.69% of the total accounts receivables of the Group, 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 Group’s treasury in accordance with the Group’s policy. The Group 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 Group’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 Group’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.

～ 46 ～

Non-derivative financial liabilities

As of 30 September 2023 Loans Corporate bonds payable Amounts payables Lease liabilities As of 31 December 2022 Loans Corporate bonds payable Amounts payables Lease liabilities As of 30 September 2022 Loans Corporate bonds payable Amounts payables Lease liabilities	< 1year	2 to 3years	4 to 5years	> 5years	Total
	$7,580,759 $14,880 $23,092,346 $260,845 $8,185,382 $14,880 $18,871,258 $281,909 $8,508,492 $14,880 $21,997,023 $283,013	$2,441,494 $2,414,880 `－` $459,605 $3,433,111 $2,429,760 `－` $439,097 $3,112,236 $2,429,760 `－` $445,032	$656,340 `－` `－` $299,394 $775,432 `－` `－` $449,665 $661,998 `－` `－` $446,390	`－` `－` `－` $296,470 $96,743 `－` `－` $311,688 $224,508 `－` `－` $372,514	$10,948,593 $2,429,760 $23,092,346 $1,316,314 $12,490,668 $2,444,640 $18,871,258 $1,482,359 $12,507,234 $2,444,640 $21,997,023 $1,546,949

(6)Reconciliation of liabilities arising from financing activities Reconciliation of liabilities for the nine-month period ended 30 September 2023:

As at 1 Jan 2023 Cash flows Non-cash changes As at 30 Sep 2023	Short-term borrowings $6,294,019 369,724 102,150	Corporate bonds payable	Long-term borrowings $5,865,307 (2,016,772) 4,679	Lease liabilities	Guarantee Deposits Total liabilities from financing activities $12,685 $15,835,335 10,204 (1,821,553) `－` 179,558
		$2,400,000 －－ $2,400,000		$1,263,324 (184,709) 72,729
	$6,765,893		$3,853,214	$1,151,344	$22,889 $14,193,340

Reconciliation of liabilities for the nine-month period ended 30 September 2022:

As at 1 Jan 2022 Cash flows Non-cash changes As at 30 Sep 2022	Short-term borrowings $3,837,377 2,686,786 226,034 $6,750,197	Short-term notes payable	Corporate bonds payable	Long-term borrowings	Lease liabilities
		$250,000 (250,000) －	$2,400,000 －－	$3,938,711 1,512,780 79,467	$1,397,631 (163,289) 79,112
		－	$2,400,000	$5,530,958	$1,313,454

Total liabilities

		Total liabilities
As at 1 Jan 2022 Cash flows Non-cash changes As at 30 Sep 2022	Guarantee Deposits $9,477 1,146 － $10,623	from financing activities
		$11,833,196 3,787,423 384,613
		$16,005,232

〜 47 〜

(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 Group 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) 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).
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 Group.

(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 Group 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 Group’s assets and liabilities

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

～ 48 ～

Level 1	Level 2	Level 3	Total
`－` Level 1	`－` Level 2	$167,004 Level 3	$167,004 Total
`－` Level 1	`－` Level 2	$137,638 Level 3	$137,638 Total
`－`	`－`	$140,563	$140,563

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

As at 1 Jan 2023 Unrealized income from equity instruments investments measured at fair value through other comprehensive income Gain Disposal Others As at 30 Sep 2023 As at 1 Jan 2022 Unrealized (losses) from equity instruments investments measured at fair value through other comprehensive income Gain Others As at 30 Sep 2022	Financial assets at fair value through other comprehensive income
	$137,638 880 30,000 (3,390) 1,876
	$167,004
	Financial assets at fair value through other comprehensive income
	$117,923 2,825 14,810 5,005
	$140,563

～ 49 ～

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 :

Valuation techniques	Significant unobservable inputs	Quantitative information	Correlation between inputs andfairvalue	Sensitivity Analysis of correlation between inputs andfairvalue
Market approach and net asset approach Valuation techniques	Discount for lack of marketability Significant unobservable inputs	35% Quantitative information	The greater degree of lack of marketability, the lower the estimated fair value is determined. Correlation between inputs andfairvalue	1% strengthens (weakens) in the discount for lack of marketability would result in (decreased) increased in the Group’s profit or loss by $877 thousand. Sensitivity Analysis of correlation between inputs andfairvalue
Market approach and net asset approach Valuation techniques	Discount for lack of marketability Significant unobservable inputs	35% Quantitative information	The greater degree of lack of marketability, the lower the estimated fair value is determined. Correlation between inputs andfairvalue	1% strengthens (weakens) in the discount for lack of marketability would result in (decreased) increased in the Group’s profit or loss by $737 thousand. Sensitivity Analysis of correlation between inputs andfairvalue
Market approach and net asset approach	Discount for lack of marketability	35%	The greater degree of lack of marketability, the lower the estimated fair value is determined.	1% strengthens (weakens) in the discount for lack of marketability would result in (decreased) increased in the Group’s profit or loss by $739 thousand.

～ 50 ～

(9)Significant assets and liabilities denominated in foreign currencies

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

elow:
Financialassets		30 September 2023
	Foreign currencies (in thousands)	Foreign exchange rate	NT$ (in thousands)
	$506,555 $3,408,734 $330,199 $2,987,713	32.2700 $16,346,524 4.4150 $15,049,562 31.7500 $10,483,821 4.4730 $13,364,040 31 December 2022
Monetary items: USD RMB Financial liabilities
Monetary items: USD RMB Financial assets
	Foreign currencies (in thousands)	Foreign exchange rate	NT$ (in thousands)
	$393,300 $2,785,793 $286,601 $2,850,751	30.7100 $12,078,257 4.4080 $12,279,776 30.7100 $8,801,519 4.4080 $12,566,108 30 September 2022
Monetary items: USD RMB Financial liabilities
Monetary items: USD RMB Financial assets
	Foreign currencies (inthousands)	Foreign exchange rate	NT$ (inthousands)
	$331,966 $2,707,959 $330,199 $2,987,713	31.7500 4.4730 31.7500 4.4730	$10,539,930 $12,112,701 $10,483,821 $13,364,040
Monetary items: USD RMB Financial liabilities
Monetary items: USD RMB

～ 51 ～

The Group’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 gain was $155,651 thousand and $95,337 thousand for the nine-month periods ended 30 September 2023 and 2022, respectively.

(10)Capital management

The primary objective of the Group’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 Group manages its capital structure and makes adjustments to it, in light of changes in economic conditions. To maintain or adjust the capital structure, the Group may adjust dividend payment to shareholders, returning capital to shareholders or issuing new shares.

13. Other disclosure

(1) Information at significant transactions and on investees
A. Financing provided to others for the nine-month periods ended 30 September 2023: Please refer to Attachment 1.
B. Endorsement/Guarantee provided to others for the nine-month periods ended 30 September 2023: Please refer to Attachment 2.
C. Securities held as of 30 September 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 nine-month periods ended 30 September 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 nine-month periods ended 30 September 2023: Please refer to Attachment 4.
F. Disposal of individual real estate with amount exceeding the lower of NT$300 million or 20% of the capital stock for the nine-month periods ended 30 September 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 nine-month periods ended 30 September 2023: Please refer to Attachment 5.
H. Receivables from related parties with amounts exceeding the lower of NT$100 million or 20% of capital stock as of 30 September 2023: Please refer to Attachment 6.
I. Direct or indirect significant influence or control over the investees for the nine-month periods ended 30 September 2023 (excluding investments in China): Please refer to Attachment 7.
J. Financial instruments and derivative transactions: None
K. Others: Significant inter-company transactions during the reporting periods: Please refer to Attachment 9.
(2) Information on investments in mainland China
A. Information on investments in mainland China: Please refer to Attachment 8.
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 5. (b)Sales, the ending balance of related receivables and their weightings: Please refer to Attachment 5. (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 10.

～ 52 ～

14. Segment information

For management purposes, the Group is organized into business units based on their products and services and has two reportable operating segments as follows:

(1) General management segment:

The general management segment is responsible for the Group’s operation planning and owns manufacturing, R&D and sales functions.

(2) Overseas segment:

The overseas segment owns manufacturing and sales functions.

No operating segments have been aggregated to form the above reportable operating segments.

Management monitors the operating results of its business units separately for the purpose of making decisions about resource allocation and performance assessment.

Segment performance is evaluated based on operating profit or loss and is measured based on accounting policies consistent with those in the consolidated financial statements.

However, finance costs, financial benefits and income taxes are managed on a group basis and are not allocated to operating segments.

Transfer prices between operating segment are on an arm’s length basis in a manner similar to transactions with third parties.

For the three-month period ended 30 September 2023

Overseas	General management	Adjustment and elimination	Total
$4,609,028 11,431,067	$11,159,792 765,129	－ ($12,196,196)	$15,768,820 －
$16,040,095	$11,924,921	($12,196,196)	$15,768,820
$1,071,102	$1,116,449	$32,297	$2,219,848

Note: Inter-segment revenues were eliminated on consolidation.

For the three-month period ended 30 September 2022

Overseas	General management	Adjustment and elimination	Total
$3,894,677 11,848,290	$10,987,968 1,317,840	`－` ($13,166,130)	$14,882,645 `－`
$15,742,967	$12,305,808	($13,166,130)	$14,882,645
$1,227,673	$637,028	$26,277	$1,890,978

Note: Inter-segment revenues were eliminated on consolidation.

～ 53 ～

For the nine-month period ended 30 September 2023

Overseas	General management	Adjustment and elimination	Total
$11,998,572 30,049,913	$30,475,675 2,243,007	`－` ($32,292,920)	$42,474,247 `－`
$42,048,485	$32,718,682	($32,292,920)	$42,474,247
$2,687,587	$2,773,931	$72,584	$5,534,102

Note: Inter-segment revenues were eliminated on consolidation.

For the nine-month period ended 30 September 2022

General management	Adjustment and elimination	Total
$27,890,555 13,931,161	`－` ($50,829,176)	$41,239,538 `－`
$41,821,716	($50,829,176)	$41,239,538
$907,678	$31,945	$4,797,002

Note: Inter-segment revenues were eliminated on consolidation.

As of 30 September 2023, 31 December 2022 and 30 September 2022, the assets of reportable segment information were as follows:

Overseas	General management	Adjustment and elimination	Total
$52,821,778	$30,501,761	($17,170,941)	$66,152,598
$45,880,336	$27,745,184	($13,151,572)	$60,473,948
$49,591,785	$27,904,381	($16,258,981)	$61,237,185

～ 54 ～

TABLE 1

ASIA VITAL COMPONENTS CO. , LTD AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2023

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

FINANCING PROVIDED TO OTHERS

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	Nature of Financing (Note 4)	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	$161,350 (USD5,000 thousand) $441,498 (CNY100,000 thousand) $112,945 (USD3,500 thousand) $161,350 (USD5,000 thousand)	－－ $112,945 (USD3,500 thousand) $161,350 (USD5,000 thousand)	－－ $112,945 (USD3,500 thousand) $161,350 (USD5,000 thousand)	3.00% 3.00% 0.00% 0.00%	2 2 2 2	`－` `－` `－` `－`	Operating capital Operating capital Operating capital Operating capital	－－－－	－－－－	－－－－	$8,218,279 $1,239,518 $1,367,321 $2,448,395	$8,218,279 $1,239,518 $1,367,321 $2,448,395	(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 year ended SEPTEMBER 30, 2021.

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.

～55～

ASIA VITAL COMPONENTS CO. , LTD AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 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	Ratio of Accumulated Endorsement/Guarantee to Net Equity per Latest Financial Statements	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)	Endorsement provided to subsidiaries in China (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	$20,545,698 $20,545,698 $20,545,698 $20,545,698 $20,545,698	$322,700 (USD10,000 thousand) $984,948 (USD10,000 thousand) (CNY150,000 thousand) $1,858,009 (USD48,000 thousand) (CNY70,000 thousand) $322,700 (USD10,000 thousand) $6,195,840 (USD192,000 thousand)	－ $662,248 (CNY150,000 thousand) $1,513,234 (USD38,000 thousand) (CNY65,000 thousand) － $6,195,840 (USD192,000 thousand)	－ $220,749 (CNY50,000 thousand) $181,014 (CNY41,000 thousand) － $3,646,510 (USD113,000 thousand)	－－－－－	－ 3.22% 7.37% － 30.16%	$30,818,547 $30,818,547 $30,818,547 $30,818,547 $30,818,547	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".

～56～

ASIA VITAL COMPONENTS CO. , LTD AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 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	Ratio of Accumulated Endorsement/Guarantee to Net Equity per Latest Financial Statements	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)	Endorsement provided to subsidiaries in China (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	$6,454,000 (USD200,000 thousand) $6,454,000 (USD200,000 thousand) $6,454,000 (USD200,000 thousand) $6,454,000 (USD200,000 thousand) $6,454,000 (USD200,000 thousand) $6,454,000 (USD200,000 thousand) $6,454,000 (USD200,000 thousand) $6,454,000 (USD200,000 thousand)	$529,798 (CNY120,000 thousand) $529,798 (CNY120,000 thousand) $794,697 (CNY180,000 thousand) $882,997 (CNY200,000 thousand) $783,660 (CNY177,500 thousand) $524,279 (CNY118,750 thousand) $1,677,694 (CNY380,000 thousand) $1,209,706 (CNY274,000 thousand)	$529,798 (CNY120,000 thousand) $529,798 (CNY120,000 thousand) $794,697 (CNY180,000 thousand) $882,997 (CNY200,000 thousand) $353,199 (CNY80,000 thousand) $309,049 (CNY70,000 thousand) $1,677,694 (CNY380,000 thousand) $994,475 (CNY225,250 thousand)	$375,438 (CNY85,037 thousand) $375,438 (CNY85,037 thousand) $386,173 (CNY87,469 thousand) $63,820 (CNY14,455 thousand) $81,619 (CNY18,487 thousand) $48,634 (CNY11,016 thousand) $760,782 (CNY172,318 thousand) $100,252 (CNY22,707 thousand)	－－－－－－－－	17.89% 28.73% 43.10% 18.69% 7.48% 6.54% 35.51% 91.58%	$6,454,000 (USD200,000 thousand) $6,454,000 (USD200,000 thousand) $6,454,000 (USD200,000 thousand) $6,454,000 (USD200,000 thousand) $6,454,000 (USD200,000 thousand) $6,454,000 (USD200,000 thousand) $6,454,000 (USD200,000 thousand) $6,454,000 (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.
(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.

～57～

ASIA VITAL COMPONENTS CO. , LTD AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 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	Ratio of Accumulated Endorsement/Guarantee to Net Equity per Latest Financial Statements	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)	Endorsement provided to subsidiaries in China (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. FIRST DOME CORP TELECOM.,LTD.	2 4 4 4 4 4 2	$6,454,000 (USD200,000 thousand) $6,454,000 (USD200,000 thousand) $6,454,000 (USD200,000 thousand) $6,454,000 (USD200,000 thousand) $6,454,000 (USD200,000 thousand) $6,454,000 (USD200,000 thousand) $2,603,766	$1,494,472 (CNY338,500 thousand) $220,749 (CNY50,000 thousand) $441,498 (CNY100,000 thousand) $1,192,046 (CNY270,000 thousand) $902,864 (CNY204,500 thousand) $700,878 (CNY158,750 thousand) $689,463 (USD7,000 thousand) (CNY105,000 thousand)	$1,064,011 (CNY241,000 thousand) $220,749 (CNY50,000 thousand) $441,498 (CNY100,000 thousand) $1,192,046 (CNY270,000 thousand) $472,403 (CNY107,000 thousand) $485,648 (CNY110,000 thousand) $560,383 (USD3,000 thousand) (CNY105,000 thousand)	$358,652 (CNY81,235 thousand) － $243,270 (CNY55,101 thousand) $700,595 (CNY158,686 thousand) $81,619 (CNY18,487 thousand) $48,634 (CNY11,016 thousand) －	$430,461 (CNY97,500 thousand) －－－－－－	34.34% 3.79% 7.57% 20.45% 8.10% 8.33% 21.52%	$6,454,000 (USD200,000 thousand) $6,454,000 (USD200,000 thousand) $6,454,000 (USD200,000 thousand) $6,454,000 (USD200,000 thousand) $6,454,000 (USD200,000 thousand) $6,454,000 (USD200,000 thousand) $3,905,650	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.

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.

～58～

ASIA VITAL COMPONENTS CO. , LTD AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 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	March 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. PUXUN JIU PHASE II VENTURE CAPITAL CO., 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 $95,122 $10,001 －	19.42% 0.74% 5.52% 2.67% 9.06% 14.06% 10.80%	－－ $31,881 $30,000 $95,122 $10,001 `－`

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

～59～

ASIA VITAL COMPONENTS CO. , LTD AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2023

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

ACQUISITION OF INDIVIDUAL REAL ESTATE PROPERTIES AT COSTS OF AT LEAST NT$300 MILLION OR 20% OF THE PAID-IN CAPITAL

TABLE 4

TABLE 4
Company Name	Types of Property	Transaction Date	Transaction Amount	Payment Term	Counterparty	Prior Transaction of Related Counterparty				Price Reference	Purpose of Acquisition	Other Terms
						Owner	Relationships	Transfer Date	Amount
AVC TECH. (VIETNAM) CO., LTD.	Factory construction	8 March, 2023	USD17,000 thousand	Based on the terms in the Contract	CHUANGXING CONSTRUCTION OVERSEAS DEVELOPMENT CO., LTD	N/A	N/A	N/A	N/A	Price comparison and price negotiation	Manufacturing purpose	None

～60～

ASIA VITAL COMPONENTS CO. , LTD AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 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 5

TABLE 5
Company Name	Related Party	Nature of Relationships	Transaction Details				Abnormal Transaction		Notes/Accounts Payable or Receivable		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	($1,380,380) ($8,230,604) ($784,822) ($652,086) ($10,684,754) ($462,490) ($394,862) ($1,820,054) $957,452	(5%) (33%) (3%) (3%) (42%) (2%) (2%) (7%) 3%	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 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 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	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	($606,731) ($4,628,211) ($311,212) ($358,338) ($4,339,368) ($473,076) ($121,071) ($221,561) $307,086	(5%) (40%) (3%) (3%) (37%) (4%) (1%) (2%) 8%

( Continued )

～61～

ASIA VITAL COMPONENTS CO. , LTD AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 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 5-1

TABLE 5-1
Company Name	Related Party	Nature of Relationships	Transaction Details				Abnormal Transaction		Notes/Accounts Payable or Receivable		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)	$1,380,380 $8,230,604 $784,822 $652,086 $10,684,754 $462,490 $394,862 $1,801,718 ($957,452)	71% 96% 31% 10% 92% 36% 95% 100% (97%)	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 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 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 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	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	$606,731 $4,628,211 $311,212 $358,338 $4,339,368 $473,076 $121,071 $220,030 ($307,086)	81% 98% 30% 11% 90% 74% 96% 100% (98%)

～62～

ASIA VITAL COMPONENTS CO. , LTD AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 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 6

TABLE 6
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. WUCHIDA INTERNATIONAL 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 ASIA VITAL COMPONENTS CO., LTD ASIA VITAL COMPONENTS CO., LTD AVC AMERICA, INC.	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 Subsidiary	$358,338 $4,628,211 $606,731 $121,071 $311,212 $4,339,368 $221,561 $473,076 $307,086	2.20 2.03 2.53 1.98 1.85 2.91 11.23 1.96 4.56	－－－－－－－－－	(Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2)	$88,364 $918,075 $152,793 $82,034 $96,917 $1,190,430 $218,462 － $307,086	(Note 1) (Note 1) (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.

～63～

ASIA VITAL COMPONENTS CO. , LTD AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 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 7

TABLE 7
Investor Company	Investee Company	Address	Main businesses and products	Initial Investment		Investment as of SEPTEMBER 30, 2023			Net income (loss) of investee company	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 Sales and manufacture of electronic parts and related products Sales and manufacture of electronic parts, computers and related products Manufacture, process and sales of molds and aluminum products	$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 $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 11,637 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% 19.25% 100.00% 100.00% 100.00% 100.00% 40.00%	$10,794,994 $6,090,442 $96,341 $192,062 $232,580 $23,800 $32,598 $49,870 $102,773 $501,225 $5,382 $374,930 $8,838 $1,170,547 $49,018	$963,302 $473,954 ($38,413) $58,058 ($1,747) $10,411 $2,178 $25,254 ($31,701) $452,317 $2 $63,734 $82 $108,074 ($18,543)	$553,963 $462,328 ($36,037) $58,058 ($1,747) $15,858 $4,534 $2,294 ($31,701) $87,080 $2 $59,466 $82 ($226,467) ($982)

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

( Continued )

～64～

ASIA VITAL COMPONENTS CO. , LTD AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 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 7-1

TABLE 7-1
Investor Company	Investee Company	Address	Main businesses and products	Initial Investment		Investment as of SEPTEMBER 30, 2023			Net income (loss) of investee company	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.	MACE TECH CORP. AVC OPTICS CORP. TONBRIDGE INVESTMENTS LTD. (Note) KEY APPLICATION TECHNOLOGY CO., LTD. WUCHIDA INTERNATIONAL CO., LTD. D-MAX INTERNATIONAL CO., LIMITED MARKETHILL INVESTMENTS LTD.	British Virgin Islands Cayman Islands Samoa Hsinchu City, Taiwan Samoa Hongkong Samoa	Trade Investment holding Investment holding Investment holding Investment holding Investment holding Sales and manufacture of electronic products	$319,776 $3,128,775 － $15,300 $132,004 $132,004 $949,097	$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	100.00% 100.00% － 16.31% 100.00% 100.00% 100.00%	$3,418,303 $2,960,625 － `－` $292,353 $381,769 $2,955,086	$262,752 ($46,785) － $6,258 $75,055 $51,389 $459,775	$262,752 ($46,785) －－ $75,055 $52,398 $453,430

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

～65～

ASIA VITAL COMPONENTS CO. , LTD AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2023

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

TABLE 8

TABLE 8
Investor Company	Investee Company	Main Businesses and Products	Total Amount of Paid-in Capital	Method ofInvestment (Note 1)	Accumulated Outflow of Investment from Taiwan as of January 1, 2023	Investment Flows		Accumulated Outflow of Investment from Taiwan as of SEPTEMBER 30, 2023	Percentage of Ownership (Direct or Indirect Investment)	Profits/ Losses of the Investee Company	Share of Profits/Losses	Carrying Amount as of SEPTEMBER 30, 2023	Accumulated Inward Remittance of Earnings as of SEPTEMBER 30, 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%	$648,170	$648,170	$4,724,990	－
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%	$192,967	$57,890	$153,866	－
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%	$265,168	$265,168	$3,098,797	－
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%	$526,508	$526,508	$5,828,901	－
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%	($66,806)	－	$95,122	－
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%	$142,209	$142,209	$1,843,786	－
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%	$51,387	$51,387	$381,374	－
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%	($46,785)	($46,785)	$2,960,613	－
FOSITEK CORP.	FIRST DOME CORP TELECOM.,LTD.	Sales and manufacture of rails, shafts and metal stamping tooling	$846,331	(2) MARKETHILL INVESTMENTS LTD.	$846,331	－	－	$846,331	100.00%	$457,434	$457,434	$2,944,419	－

Accumulated Outflow of Investment from Taiwan to Mainland China as of SEPTEMBER 30, 2023	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
$7,088,057 (US$230,093,010)	$8,414,429 (US$260,750,828)	(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.

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ASIA VITAL COMPONENTS CO. , LTD AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2023

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

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS

TABLE 9

TABLE 9
No. (Note 1)	Company Name	Counter Party	Nature of Relationship (Note 2)	IntercompanyTransactions
				Financial Statements Item	Amount	Terms	Percentage of Consolidated Net Revenue or Total Assets (Note 3)
0	ASIA VITAL COMPONENTS CO. , LTD	AVC AMERICA, INC.	1	Sales	$957,452	General trading terms	2%
0	ASIA VITAL COMPONENTS CO. , LTD	AVC AMERICA, INC.	1	Accounts receivable	$307,086	General trading terms	0%
0	ASIA VITAL COMPONENTS CO. , LTD	ASIA VITAL COMPONENTS (CHINA) CO., LTD.	1	Purchases	$652,086	General trading terms	2%
0	ASIA VITAL COMPONENTS CO. , LTD	ASIA VITAL COMPONENTS (CHINA) CO., LTD.	1	Accounts payable	$358,338	General trading terms	1%
0	ASIA VITAL COMPONENTS CO. , LTD	AVC OPTICS (WUHAN) CORP.	1	Purchases	$784,822	General trading terms	2%
0	ASIA VITAL COMPONENTS CO. , LTD	AVC OPTICS (WUHAN) CORP.	1	Accounts payable	$311,212	General trading terms	0%
0	ASIA VITAL COMPONENTS CO. , LTD	ASIA VITAL COMPONENTS (CHENGDU) CO., LTD.	1	Purchases	$1,380,380	General trading terms	3%
0	ASIA VITAL COMPONENTS CO. , LTD	ASIA VITAL COMPONENTS (CHENGDU) CO., LTD.	1	Accounts payable	$606,731	General trading terms	1%
0	ASIA VITAL COMPONENTS CO. , LTD	ASIA VITAL COMPONENTS (SHEN ZHEN) CO., LTD.	1	Purchases	$8,230,604	General trading terms	19%
0	ASIA VITAL COMPONENTS CO. , LTD	ASIA VITAL COMPONENTS (SHEN ZHEN) CO., LTD.	1	Accounts payable	$4,628,211	General trading terms	7%
0	ASIA VITAL COMPONENTS CO. , LTD	WUCHIDA INTERNATIONAL CO.,LTD.	1	Purchases	$394,862	General trading terms	1%
0	ASIA VITAL COMPONENTS CO. , LTD	WUCHIDA INTERNATIONAL CO.,LTD.	1	Accounts payable	$121,071	General trading terms	0%
0	ASIA VITAL COMPONENTS CO. , LTD	ASIA VITAL COMPONENTS (DONGGUAN) CO.,LTD.	1	Purchases	$10,684,754	General trading terms	25%
0	ASIA VITAL COMPONENTS CO. , LTD	ASIA VITAL COMPONENTS (DONGGUAN) CO.,LTD.	1	Accounts payable	$4,339,368	General trading terms	7%
0	ASIA VITAL COMPONENTS CO. , LTD	AVC TECH. (VIETNAM) CO., LTD.	1	Purchases	$1,820,054	General trading terms	4%
0	ASIA VITAL COMPONENTS CO. , LTD	AVC TECH. (VIETNAM) CO., LTD.	1	Accounts payable	$221,561	General trading terms	0%
0	ASIA VITAL COMPONENTS CO. , LTD	AVC TECH. (VIETNAM) CO., LTD.	1	Prepayments	$422,171	General trading terms	1%

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ASIA VITAL COMPONENTS CO. , LTD AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2023

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

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS

TABLE 9-1

TABLE 9-1
No. (Note 1)	Company Name	Counter Party	Nature of Relationship (Note 2)	Intercompany Transactions
				Financial Statements Item	Amount	Terms	Percentage of Consolidated Net Revenue or Total Assets (Note 3)
1	ASIA VITAL COMPONENTS (CHENGDU) CO., LTD.	ASIA VITAL COMPONENTS (CHINA) CO., LTD.	3	Sales	$153,061	General trading terms	0%
1	ASIA VITAL COMPONENTS (CHENGDU) CO., LTD.	JADS CORPORATION (HK) LTD.	3	Sales	$206,170	General trading terms	0%
2	ASIA VITAL COMPONENTS (CHINA) CO., LTD.	ASIA VITAL COMPONENTS (DONGGUAN) CO.,LTD.	3	Other accounts receivable	$324,359	General trading terms	0%
2	ASIA VITAL COMPONENTS (CHINA) CO., LTD.	(JIASHAN) D-MAX ELECTRONICS CO.,LTD.	3	Accounts receivable	$351,027	General trading terms	1%
2	ASIA VITAL COMPONENTS (CHINA) CO., LTD.	(JIASHAN) D-MAX ELECTRONICS CO.,LTD.	3	Sales	$331,568	General trading terms	1%
3	AVC OPTICS (WUHAN) CORP.	ASIA VITAL COMPONENTS (CHINA) CO., LTD.	3	Accounts payable	$127,570	General trading terms	0%
3	AVC OPTICS (WUHAN) CORP.	ASIA VITAL COMPONENTS (CHINA) CO., LTD.	3	Purchases	$248,006	General trading terms	1%
4	ASIA VITAL COMPONENTS (DONGGUAN) CO.,LTD.	AVC TECH. (VIETNAM) CO., LTD.	3	Accounts receivable	$195,416	General trading terms	0%
4	ASIA VITAL COMPONENTS (DONGGUAN) CO.,LTD.	AVC TECH. (VIETNAM) CO., LTD.	3	Sales	$368,567	General trading terms	1%
4	ASIA VITAL COMPONENTS (DONGGUAN) CO.,LTD.	AVC PRECISION, CO., LTD.	3	Accounts payable	$697,296	General trading terms	1%
4	ASIA VITAL COMPONENTS (DONGGUAN) CO.,LTD.	AVC PRECISION, CO., LTD.	3	Purchases	$1,783,168	General trading terms	4%
5	JADS CORPORATION (HK) LTD.	ASIA VITAL COMPONENTS (DONGGUAN) CO.,LTD.	3	Accounts payable	$246,847	General trading terms	0%
5	JADS CORPORATION (HK) LTD.	ASIA VITAL COMPONENTS (DONGGUAN) CO.,LTD.	3	Purchases	$524,521	General trading terms	1%
6	CHIHUNG INTERNATIONAL LTD.	JADS CORPORATION (HK) LTD.	3	Other accounts receivable	$161,350	General trading terms	0%

Note 1 ： The parent company and its subsidiaries are coded as follows:

No.1. The parent company is coded "0".

No.2. The subsidiaries are coded consecutively beginning from "1" in the order presented in the table above.

Note 2 ： Transactions are categorized as follows:

No.1. Transactions from parent company to a subsidiary.

No.2. Transactions from subsidiary to the parent company.
No.3. Transactions between subsidiaries.
Note 3 ： Regarding the percentage of transaction amount to consolidated net revenue or total assets, it is computed based on the ending balance to consolidated total assets for balance sheet items;

and based on interim accumulated amount to consolidated net revenue for income statement items.

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ASIA VITAL COMPONENTS CO. , LTD AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2023

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

Information of major shareholders

TABLE 10

TABLE 10
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 2021.	29,260	7.63%

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.

～69～

AI assistant

AVC — Interim / Quarterly Report 2023

52251_rns_2023-12-05_340eb7b4-eec3-40ad-9181-f69e1f01c857.pdf

ASIA VITAL COMPONENTS CO. , LTD

AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

WITH REPORT OF INDEPENDENT ACCOUNTANTS

REVIEW REPORT OF INDEPENDENT ACCOUNTANTS

English Translations of a Report Originally Issued in Chinese

Introduction

Scope of Review

Basis for Qualified Conclusion

Qualified Conclusion

ERNST & YOUNG

Notice to Readers

English translation of Consolidated Financial Statements Originally issued in Chinese

English translation of Consolidated Financial Statements Originally issued in Chinese

ASIA VITAL COMPONENTS CO., LTD AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

English translation of Consolidated Financial Statements originally issued in Chinese ASIA VITAL COMPONENTS CO., LTD AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

English Translation of Financial Statements Originally Issued in Chinese

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”

4. Summary of significant accounting policies

Preparation principle of consolidated financial statements

6. Contents of significant accounts

(1)Cash and cash equivalents

(2)Financial assets measured at amortized cost, current

(3)Notes receivable, net

(4)Accounts receivable, net

(b) 31 December 2022:

(c) 30 September 2022:

- (5)Other receivables and other receivables related parties

(6)Inventories

A.

(7)Prepayments

(9)Investments accounted for under the equity method

(10)Property, plant and equipment

(11)Investment property

(12)Intangible assets

Computer

(13)Other non-current assets

- (14)Short term borrowings

(15)Other payables

(16)Corporate Bonds payable

- (17)Long term borrowings

(18)Long-term deferred revenue

- (19)Post employment benefits

A. Defined contribution plan

B. Defined benefits plan

(20)Equities

A. Common stock

B. Additional paid-in capital

D. Non-controlling interests

- (21)Share based payment

A. Stock option plan for employees of the parent company

(22)Operating revenues

A. Disaggregation of revenue

(23)Lease

- (25)Non operating income and expenses

A. Interest income

B. Other income

C. Other gains and losses

D. Finance costs

(26)Components of other comprehensive income

(27)Income tax

Income tax expense recognized in profit or loss

(28)Earnings per share

7. Related party transactions Key management personnel compensation

8. Assets pledged as security

9. Commitments and contingencies

(3) Other

10. Losses due to major disasters

None.

11. Significant subsequent events

12. Financial instruments

(1)Categories of financial instruments

Financial liabilities

(3)Market risk

AVC Interim / Quarterly Report 2023