AVISION — Annual Report 2022

Nov 11, 2022

AVISION INC. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND

INDEPENDENT AUDITORS’ REPORT DECEMBER 31, 2022 AND 2021

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

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AVISION INC.

DECEMBER 31, 2022 AND 2021 CONSOLIDATED FINANCIAL STATEMENTS

AND INDEPENDENT AUDITORS’ REPORT

TABLE OF CONTENTS

Contents Page

1.	Cover Page	1
2.	Table of Contents	2 ~ 3
3.	Declaration of Consolidated Financial Statements of Affiliated Enterprises	4
4.	Independent Auditors’ Report	5 ~ 11
5.	Consolidated Balance Sheets	12 ~ 13
6.	Consolidated Statements of Comprehensive Income	14 ~ 15
7.	Consolidated Statements of Changes in Equity	16
8.	Consolidated Statements of Cash Flows	17 ~ 18
9.	Notes to the Consolidated Financial Statements	19 ~ 73
	(1) History and Organization	19
	(2) The Date of Authorisation for Issuance of the Financial Statements	19
	and Procedures for Authorisation
	(3) Application of New Standards, Amendments and Interpretations	19 ~ 20
	(4) Summary of Significant Accounting Policies	20 ~ 32
	(5) Critical Accounting Judgements, Estimates and Key Sources of	32
	Assumption Uncertainty

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Contents Page

(6)	Details of Significant Accounts	32 ~ 57
(7)	Related Party Transactions	57 ~ 58
(8)	Pledged Assets	58
(9)	Significant Contingent Liabilities and Unrecognised Contract	58
	Commitments
(10)	Significant Disaster Loss	58
(11)	Significant Events after the Balance Sheet Date	58
(12)	Others	58 ~ 71
(13)	Supplementary Disclosures	71 ~ 72
(14)	Segment Information	72 ~ 73

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AVISION INC.

Declaration of Consolidated Financial Statements of Affiliated Enterprises

For the year ended December 31, 2022, pursuant to “Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises,” the company that is required to be included in the consolidated financial statements of affiliates, is the same as the company required to be included in the consolidated financial statements of parent and subsidiary companies under International Financial Reporting Standard No. 10. Additionally, if relevant information that should be disclosed in the consolidated financial statements of affiliates has all been disclosed in the consolidated financial statements of parent and subsidiary companies, it shall not be required to prepare separate consolidated financial statements of affiliates.

Hereby declare,

AVISION INC.

Representative: SHENG,SHAO-LAN March 23, 2023

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INDEPENDENT AUDITORS’ REPORT TRANSLATED FROM CHINESE

PWCR22000642

To the Board of Directors and Shareholders of AVISION INC.

Opinion

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

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

Basis for opinion

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

Key audit matters

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

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The key audit matters in relation to the consolidated financial statements for the year ended December 31, 2022 are stated as follows:

Impairment assessment of property, plant and equipment and right-of-use assets

Description

The Group’s property, plant and equipment and right-of-use assets amounted to NT$675,672 thousand as at December 31, 2022. Please refer to Note 5(1) for accounting estimates and assumption uncertainty related to impairment assessment of property, plant and equipment and right-of-use assets and Notes 6(5) and 6(6) for details of property, plant and equipment and right-of-use assets. The Group determined the recoverable amounts of property, plant and equipment and right-of-use assets at the higher of the value in use and fair value less costs of disposal and assessed whether there was any impairment on property, plant and equipment and right-of-use assets utilising the recoverable amounts. Given that the assessment of value in use of property, plant and equipment and right-of-use assets involves the estimation of future cash flows and determination of discount rates and the assumptions used to forecast future cash flows and determination of discount rates have significant influence on the estimation results of value in use of property, plant and equipment and right-of-use assets, we consider the impairment assessment of property, plant and equipment and right-of-use assets a key audit matter.

How our audit addressed the matter

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

1. Discussed the estimation procedures of future cash flows with the management and obtained an understanding on the Group’s product strategy and execution status.

2. Assessed the reasonableness of various assumptions used by the management to estimate future cash flows, including the expected growth rate and gross margin; and assessed the parameters used for discount rates, including the risk-free return rate, industry’s risk coefficient and long-term market return rate that were used to calculate cost of equity.

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Assessment of allowance for inventory valuation loss

Description

The Group mainly manufactures and sells multi-function peripherals, document scanners and network peripherals. Due to the rapid technology innovation and the paperless trend in the market for development of environmental protection, energy saving and carbon reduction, these inventories have a higher risk of incurring loss on decline in market value or obsolescence. Please refer to Note 5(2) for accounting estimates and assumption uncertainty related to assessment of allowance for inventory valuation loss and Note 6(4) for details of inventories. Inventories of the Group are stated at the lower of cost and net realisable value. Given that the amount and items of the Group’s inventories are significant and numerous and the management must determine the net realisable value of inventories on balance sheet date using judgements and estimates, we consider the assessment of allowance for inventory valuation loss a key audit matter.

How our audit addressed the matter

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

1. Assessed the consistency of provision policies and reasonableness of procedures used for allowance for inventory valuation loss.

2. Verified the accuracy of logic in inventory aging reports to ascertain whether the inventories aged over a certain period had been included in the report.

3. Reviewed the appropriateness of estimation basis used for net realisable value of inventories and discussed and verified the supporting documents obtained from the management to assess the reasonableness of allowance for valuation loss determined by the management.

Assessment of going concern assumption

Description

The Company had a deficit of NT$32,399 thousand for the year ended December 31, 2022 and the accumulated deficit as at December 31, 2022 was NT$924,847 thousand. As described in Note 12(1), the management of the Company had taken necessary measures to ascertain the Company can continue to operate in the future and gradually improve financial position.

Given that the aforementioned measures have significant influence on financial position of the Company within the next year, we consider the assessment of going concern assumption a key audit matter.

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How our audit addressed the matter

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

1. Discussed with the management the events or conditions that affected going concern assumption and its response plan.

2. Assessed the feasibility of the management’s response plan and the result of improving financial position.

3. Obtained the reasonableness of cash flow projections for the next 12 months which were prepared by the management, including:

4. (1) Assessed the reasonableness of various assumptions in the forecasted financial information used by the management;

5. (2) Inquired the terms of the borrowing contracts and ascertained there were no defaults resulting in unexpected cash outflows;

6. (3) Reviewed the existing financing contracts and ascertained the credit periods and unused facilities. In addition, reviewed the contracts newly added after the balance sheet date to ascertain whether the financing facilities and periods are sufficient to cover working capital for the next 12 months.

7. Obtained and reviewed the management’s response plan and the declaration issued for feasibility of the plan.

8. Assessed the appropriateness of notes to the financial statement disclosed by the management.

– Others parent company only financial statements statements

We have audited and express an unmodified opinion on the parent company only financial statements of AVISION INC. as at and for the years ended December 31, 2022 and 2021, respectively.

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Responsibilities of management and those charged with governance for the consolidated financial statements

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

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

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

Auditors’ responsibilities for the audit of the consolidated financial statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Standards on Auditing of the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

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

1. Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit

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evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

1. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.

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

3. Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the parent company only financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Company to cease to continue as a going concern.

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

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

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

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

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

Chiang, Tsai-Yen[Lin, Yu-Kuan ] For and on behalf of PricewaterhouseCoopers, Taiwan March 23, 2023

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

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

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AVISION INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2022 AND 2021

(Expressed in thousands of New Taiwan dollars)

Assets	Notes 6(1) 8 6(2) 6(2) 6(4) 6(3) 6(5) and 8 6(6) 6(23) 8	December 31, 2022 AMOUNT % $ 445,355 15 7,000 - 2 - 787,647 27 23,855 1 776,193 26 53,557 2 28 - 2,093,637 71 97,187 3 467,785 16 207,887 7 54,962 2 13,250 1 10,678 - 1,190 - 852,939 29 $ 2,946,576 100	December 31, 2021	December 31, 2021
		AMOUNT $ 445,355 7,000 2 787,647 23,855 776,193 53,557 28 2,093,637 97,187 467,785 207,887 54,962 13,250 10,678 1,190 852,939 $ 2,946,576	AMOUNT $ 235,373 7,000 4 387,392 37,271 899,513 57,843 224 1,624,620 136,583 490,729 232,010 40,262 13,619 2,824 44,761 960,788 $ 2,585,408	%
Current assets 1100 Cash and cash equivalents 1136 Current financial assets at amortised cost, net 1150 Notes receivable, net 1170 Accounts receivable, net 1200 Other receivables 130X Inventories 1410 Prepayments 1470 Other current assets 11XX Total current assets Non-current assets 1517 Non-current financial assets at fair value through other comprehensive income 1600 Property, plant and equipment 1755 Right-of-use assets 1780 Intangible assets 1840 Deferred income tax assets 1920 Guarantee deposits paid 1990 Other non-current assets 15XX Total non-current assets 1XXX Total assets				9 - - 15 2 35 2 -
				63
				5 19 9 2 - - 2
				37
				100

(Continued)

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AVISION INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2022 AND 2021

(Expressed in thousands of New Taiwan dollars)

Liabilities and Equity

December 31, 2022 December 31, 2021 Notes AMOUNT % AMOUNT % 6(7), 7 and 8 $ 807,262 27 $ 558,136 22 25,000 1 - - 6(16) 37,191 1 80,949 3 90 - - - 283,825 10 394,799 15 6(8) 190,111 7 179,571 7 3,028 - - - 20,683 1 20,000 1 28,428 1 25,532 1 6(9) and 8 54,886 2 2,963 - 8 7,887 - 9,863 - 1,458,391 50 1,271,813 49 6(9) and 8 59,520 2 17,037 1 179,887 6 205,029 8 6(10) 60,690 2 91,264 3 300,097 10 313,330 12 1,758,488 60 1,585,143 61 6(11)(12) 2,132,211 72 1,894,441 73 6(13) 92,215 3 77,455 3 6(14) 5,836 - 5,836 - ( 924,847) ( 31) ( 902,020) ( 35 ) 6(15) ( 129,446) ( 4) ( 80,556) ( 3 ) 6(12) ( 6,669) - ( 6,669) - 1,169,300 40 988,487 38 18,788 - 11,778 1 1,188,088 40 1,000,265 39 9 11 $ 2,946,576 100 $ 2,585,408 100

Current liabilities 2100 Short-term borrowings 2110 Short-term notes and bills payable 2130 Current contract liabilities 2150 Notes payable 2170 Accounts payable 2200 Other payables 2230 Current income tax liabilities 2250 Provisions for liabilities - current 2280 Current lease liabilities 2320 Long-term liabilities, current portion 2399 Other current liabilities 21XX Total current Liabilities Non-current liabilities 2540 Long-term borrowings 2580 Non-current lease liabilities 2600 Other non-current liabilities 25XX Total non-current liabilities 2XXX Total liabilities Equity attributable to owners of parent Share capital 3110 Share capital - common stock Capital surplus 3200 Capital surplus Retained earnings 3320 Special reserve 3350 Accumulated deficit Other equity 3400 Other equity interest 3500 Treasury stocks 31XX Equity attributable to owners of the parent 36XX Non-controlling interest 3XXX Total equity Significant commitments and contingencies Significant events after the balance msheet date 3X2X Total liabilities and equity

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

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AVISION INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

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

Items

Year ended December 31 2022 2021 Notes AMOUNT % AMOUNT % 6(16) $ 2,832,440 100 $ 2,828,116 100 6(4)(21)(22) ( 2,093,944) ( 74) ( 2,224,378) ( 78) 738,496 26 603,738 22 6(21)(22) ( 166,031) ( 6) ( 161,847) ( 6) ( 190,430) ( 7) ( 166,956) ( 6) ( 401,691) ( 14) ( 401,938) ( 14) 12(3) ( 39,344) ( 1) 292 - ( 797,496) ( 28) ( 730,449) ( 26) ( 59,000) ( 2) ( 126,711) ( 4) 6(17) 1,653 - 5,704 - 6(18) 15,939 1 15,432 1 6(19) 27,999 1 ( 953) - 6(20) and 7 ( 32,839) ( 1) ( 25,621) ( 1) 12,752 1 ( 5,438) - ( 46,248) ( 1) ( 132,149) ( 4) 6(23) 9,648 - 6,262 - ($ 36,600) ( 1) ($ 125,887) ( 4)

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

(Continued)

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AVISION INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

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

Items

Year ended December 31 2022 2021 Notes AMOUNT % AMOUNT % 6(10) $ 14,348 1 $ 11,897 - 6(3)(15) ( 45,826) ( 2) ( 72,215) ( 2) ( 31,478) ( 1) ( 60,318) ( 2) 6(15) ( 3,064) - ( 19,187) ( 1) 6(15) 11,211 - ( 1,158) - 8,147 - ( 20,345) ( 1) ($ 23,331) ( 1) ($ 80,663) ( 3) ($ 59,931) ( 2) ($ 206,550) ( 7) ($ 32,399) ( 1) ($ 125,928) ( 4) ( 4,201) - 41 - ($ 36,600) ( 1) ($ 125,887) ( 4) ($ 66,941) ( 2) ($ 205,433) ( 7) 7,010 - ( 1,117) - ($ 59,931) ( 2) ($ 206,550) ( 7) 6(24) ($ 0.17) ($ 0.69) ($ 0.17) ($ 0.69)

Other comprehensive income Item that will not be reclassified to profit or loss: 8311 Remeasurements of defined benefit plans 8316 Unrealised loss from investments in equity instruments measured at fair value through other comprehensive income 8310 Total items that will not be reclassified to profit or loss Items that may be reclassified to profit or loss: 8361 Financial statements translation differences of foreign operations 8370 Share of other comprehensive income of associates and joint ventures accounted for using equity method, components of other comprehensive income that will be reclassified to profit or loss 8360 Total items that may be reclassified to profit or loss 8300 Total other comprehensive loss, net of tax 8500 Total comprehensive loss for the year Profit (loss), attributable to: 8610 Owners of the parent 8620 Non-controlling interest Comprehensive (loss) income attributable to: 8710 Owners of the parent 8720 Non-controlling interest Loss per share 9750 Basic loss per share 9850 Diluted loss per share

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

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AVISION INC AND SUBSIDIARIES

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

(Expressed in thousands of New Taiwan dollars)

Year ended December 31, 2021 Balance at January 1, 2021 Loss for the year Other comprehensive loss for the year Total comprehensive loss Cash capital increase Disposal of investment in equity instruments designated at fair value through other comprehensive income Share-based payments Put in non-controling interest Balance at December 31, 2021 Year ended December 31, 2022 Balance at January 1, 2022 Loss for the year Other comprehensive income (loss) for the year Total comprehensive income (loss) Cash capital increase Share-based payments Balance at December 31, 2022	Notes					Equity attributable to	Equity attributable to	o	wners of the parent	wners of the parent				Non-controlling interest		Total equity
			Share capital - common stock	Capital surplus, additional paid- in capital		Retained	Earnings		Other equity interest		Treasury stocks		Total
						Special reserve	Accumulated deficit		Financial statements translation differences of foreign operations	Unrealised gains (losses) from financial assets measured at fair value through other comprehensive income
	6(10)(15) 6(12) 6(3)(15) 6(11)(13)(2 2) 6(10)(15) 6(12) 6(11)(13)(2 2)		$ 1,794,441 - - - 100,000 - - - $ 1,894,441 $ 1,894,441 - - - 237,770 - $ 2,132,211	$ 71,660 - - - - - 5,795 - $ 77,455 $ 77,455 - - - ( 840 ) 15,600 $ 92,215		$ 5,836 - - - - - - - $ 5,836 $ 5,836 - - - - - $ 5,836	($ 769,829 ) ( 125,928 ) 11,897 ( 114,031 ) ( 12,600 ) ( 5,560 ) - - ($ 902,020 ) ($ 902,020 ) ( 32,399 ) 14,348 ( 18,051 ) ( 4,776 ) - ($ 924,847 )	$ 56,090 - ( 19,187 ) ( 19,187 ) - - - - $ 36,903 $ 36,903 - ( 3,064 ) ( 3,064 ) - - $ 33,839		($ 50,804 ) - ( 72,215 ) ( 72,215 ) - 5,560 - - ($ 117,459 ) ($ 117,459 ) - ( 45,826 ) ( 45,826 ) - - ($ 163,285 )	($ 6,669 ) - - - - - - - ($ 6,669 ) ($ 6,669 ) - - - - - ($ 6,669 )	$ 1,100,725 ( 125,928 ) ( 79,505 ) ( 205,433 ) 87,400 - 5,795 - $ 988,487 $ 988,487 ( 32,399 ) ( 34,542 ) ( 66,941 ) 232,154 15,600 $ 1,169,300		$ 140 41 ( 1,158 ) ( 1,117 ) - - - 12,755 $ 11,778 $ 11,778 ( 4,201 ) 11,211 7,010 - - $ 18,788	$ 1,100,865 ( 125,887 ) ( 80,663 ) ( 206,550 ) 87,400 - 5,795 12,755 $ 1,000,265 $ 1,000,265 ( 36,600 ) ( 23,331 ) ( 59,931 ) 232,154 15,600 $ 1,188,088

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

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AVISION INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2022 AND 2021

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM OPERATING ACTIVITIES Loss before tax Adjustments Adjustments to reconcile profit (loss) Expected credit impairment loss (gain) Depreciation expense Amortisation expense Interest expense Interest income Share-based payments Proceeds from disposal of property, plant and equipment Changes in operating assets and liabilities Changes in operating assets Notes receivable Accounts receivable Other receivables Inventories Prepayments Other current assets Other non-current assets Changes in operating liabilities Contract liabilities Notes payable Accounts payable Other payables Provisions Other current liabilities Net defined benefit liability Cash outflow generated from operations Interest received Interest paid Net cash flows used in operating activities

Year ended December 31 Notes 2022 2021 ($ 46,248 ) ($ 132,149 ) 12(3) 39,344 ( 292 ) 6(5)(6)(21) 113,391 113,093 6(21) 32,047 10,923 6(20) 32,839 25,621 6(17) ( 1,653 ) ( 5,704 ) 6(11)(22) 15,600 5,795 6(19) ( 44 ) ( 3,093 ) 2 217 ( 403,897 ) 8,136 14,189 ( 1,702 ) 114,078 ( 374,898 ) 1,475 ( 13,908 ) 196 ( 134 ) ( 887 ) ( 156 ) ( 50,693 ) ( 30,805 ) 90 - ( 114,457 ) 87,929 ( 7,909 ) ( 6,277 ) 521 4,363 ( 1,976 ) 6,136 ( 16,246 ) ( 22,439 ) ( 280,238 ) ( 329,344 ) 1,653 5,704 ( 32,839 ) ( 25,621 ) ( 311,424 ) ( 349,261 )

(Continued)

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AVISION INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2022 AND 2021

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of financial assets at fair value through other comprehensive income Proceeds from disposal of financial assets at fair value through other comprehensive income Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Acquisition of intangible assets Increase in guarantee deposits paid Increase in other non-current assets Net cash flows used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Increase in short-term borrowings Increase in long-term borrowings Repayment of long-term borrowings Increase in short-term notes and bills payable Decrease (increase) in guarantee deposits paid Payments of lease liabilities Cash capital increase Changes in non-controlling interests Net cash flows from financing activities Effect of exchange rate change Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year

Year ended December 31 Notes 2022 2021 12(3) ($ 1,138 ) $ - 6(3) - 6,647 6(25) ( 37,311 ) ( 35,605 ) 459 8,430 ( 14,599 ) ( 16,932 ) ( 7,127 ) ( 334 ) - ( 44,458 ) ( 59,716 ) ( 82,252 ) 6(26) 263,529 4,416 6(26) 135,000 - 6(26) ( 40,595 ) - 6(26) 25,000 - 6(26) 24 ( 810 ) 6(26) ( 27,305 ) ( 25,880 ) 6(12) 232,154 87,400 - 12,755 587,807 77,881 ( 6,685 ) ( 6,538 ) 209,982 ( 360,170 ) 6(1) 235,373 595,543 6(1) $ 445,355 $ 235,373

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

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AVISION INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED DECEMBER 31, 2022 AND 2021

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

1. History and Organization

AVISION INC. (the “Company”) was incorporated as a company limited by shares under the provisions of the Company Act of the Republic of China (R.O.C.). The company and its subsidiaries (collectively referred herein as the “Group”) are primarily engaged in the development and manufacture of digital office equipment (multi-function peripherals, document scanners and network peripherals).

2. The Date of Authorisation for Issuance of the Financial Statements and Procedures for Authorisation

These consolidated financial statements were authorised for issuance by the Board of Directors on March 23, 2023.

3. Application of New Standards, Amendments and Interpretations

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

New standards, interpretations and amendments endorsed by FSC effective from 2022 are as follows:

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

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

(2) Effect of new issuances of or amendments to IFRSs as endorsed by the FSC but not yet adopted by

the Group

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

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

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

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

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

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

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

4. Summary of Significant Accounting Policies

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

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

(1) Compliance statement

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

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(2) Basis of preparation

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

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

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

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

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

(3) Basis of consolidation

• A. Basis for preparation of consolidated financial statements:

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

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

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

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

• (e) When the Group loses control of a subsidiary, the Group remeasures any investment retained in the former subsidiary at its fair value. That fair value is regarded as the fair value on initial recognition of a financial asset or the cost on initial recognition of the associate or joint venture. Any difference between fair value and carrying amount is recognised in profit or loss. All amounts previously recognised in other comprehensive income in relation to the subsidiary

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are reclassified to profit or loss on the same basis as would be required if the related assets or liabilities were disposed of. That is, when the Group loses control of a subsidiary, all gains or losses previously recognised in other comprehensive income in relation to the subsidiary should be reclassified from equity to profit or loss, if such gains or losses would be reclassified to profit or loss when the related assets or liabilities are disposed of.

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B. Subsidiaries included in the consolidated financial statements:

Name of Name of Main business investor subsidiary activities Avision Inc. Avision International Inc. General Investment Avision International Inc. Fortune Investments Ltd. General Investment Fortune Investments Ltd. Avision (Suzhou) Co., Ltd. Manufacture and sale of scanners and multifunction printers Fortune Investments Ltd. Avision Digital Office Equipment (Shanghai) Trading Co.,Ltd. International Trade Career Avision (Suzhou) Co., Ltd. Yichun Avision Co.,Ltd. Manufacture and sale of scanners and multifunction printers Avision (Suzhou) Co., Ltd. Suzhou Hongxin Microelectronics Technology Co.,Ltd. Engaging in development, production, sale and after sale services of integrated circuit chip products. Avision Inc. Quantum Investment Co.,Ltd. General Investment Quantum Investment Co.,Ltd. Avision Europe GmbH Sale and repairing services of scanners. Avision Inc. Avision Development Inc. General Investment Avision Development Inc. Sunglow International Inc. General Investment Sunglow International Inc. Avision Labs, Inc. Sale and repairing services of scanners. Avision Inc. Avision Brasil Ltda. Sale and repairing services of scanners.	December31,2022 December31,2021 100 100 100 100 100 100 100 100 100 100 79 79 100 100 100 100 100 100 100 100 96.39 96.39 99 99 Ownership(%)	December31,2022 December31,2021 100 100 100 100 100 100 100 100 100 100 79 79 100 100 100 100 100 100 100 100 96.39 96.39 99 99 Ownership(%)	Description
	100 100 100 100 100 79 100 100 100 100 96.39 99	100 100 100 100 100 79 100 100 100 100 96.39 99

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

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

E. Significant restrictions: None.

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

(4) Foreign currency translation

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

• A. Foreign currency transactions and balances

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

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

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

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

• B. Translation of foreign operations

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

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

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

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

• (b) When the foreign operation partially disposed of or sold is an associate or joint arrangement, exchange differences that were recorded in other comprehensive income are proportionately reclassified to profit or loss as part of the gain or loss on sale. In addition, even when the

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Company retains partial interest in the former foreign associate or joint arrangement after losing significant influence over the former foreign associate, or losing joint control of the former joint arrangement, such transactions should be accounted for as disposal of all interest in these foreign operations.

• (5) Classification of current and non-current items

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

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

  • (b) Assets held mainly for trading purposes;

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

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

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

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

  • (b) Liabilities arising mainly from trading activities;

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

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

(6) Cash equivalents

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

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

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

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

• C. At initial recognition, the Company measures the financial assets at fair value plus transaction costs. The Company subsequently measures the financial assets at fair value. The changes in fair value of equity investments that were recognised in other comprehensive income are reclassified to retained earnings and are not reclassified to profit or loss following the derecognition of the investment. Dividends are recognised as revenue when the right to receive payment is established,

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future economic benefits associated with the dividend will flow to the Group and the amount of the dividend can be measured reliably.

(8) Accounts and notes receivable

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

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

• (9) Impairment of financial assets

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

(10) Derecognition of financial assets

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

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

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

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

(11) Inventories

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

(12) Property, plant and equipment

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

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

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

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

Buildings and structures 04 ~ 51 years Machinery and equipment 03 ~ 10 years Transportation equipment 04 ~ 06 years Office equipment 04 ~ 06 years Other equipment 03 ~ 06 years

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

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

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

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

(14) Intangible assets

Computer software is stated at cost and amortised on a straight-line basis over its estimated useful life of 3 to 10 years.

(15) Impairment of non-financial assets

The Group assesses at each balance sheet date the recoverable amounts of those assets where there

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is an indication that they are impaired. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell or value in use. When the circumstances or reasons for recognising impairment loss for an asset in prior years no longer exist or diminish, the impairment loss is reversed. The increased carrying amount due to reversal should not be more than what the depreciated or amortised historical cost would have been if the impairment had not been recognised.

(16) Borrowings

Borrowings comprise long-term and short-term bank borrowings and other long-term and short-term loans. Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortised cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognised in profit or loss over the period of the borrowings using the effective interest method.

• (17) Notes and accounts payable

Accounts payable and bills are payable in the normal course of business for picking up goods or services from suppliers and sales obligation measure. The short-term accounts receivable that may be unpaid news, because the impact of discounting is not significant, the original issued bills will be used later amount to measure.

• (18) Provisions

Provisions are contingent liabilities from warranties and are recognised when the Group has a present legal or constructive obligation as a result of past events, and it is probable that an outflow of economic resources will be required to settle the obligation and the amount of the obligation can be reliably estimated. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation on the balance sheet date, which is discounted using a pre-tax discount rate that reflects the current market assessments of the time value of money and the risks specific to the obligation. When discounting is used, the increase in the provision due to passage of time is recognised as interest expense.

(19) Employee benefits

• A. Short-term employee benefits

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

B. Pensions

• (a) Defined contribution plans

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

(b) Defined benefit plans

• i. Net obligation under a defined benefit plan is defined as the present value of an amount of

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

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

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

  • Employees’ compensation and directors’ remuneration are recognised as expense and liability, provided that such recognition is required under legal or constructive obligation and those amounts can be reliably estimated. Any difference between the resolved amounts and the subsequently actual distributed amounts is accounted for as changes in estimates. If employee compensation is paid by shares, after taking into account the effects of ex-rights and ex-dividends, the Company calculates the number of shares based on the fair value per share at the day before the shareholders’ meeting held in the year following the financial reporting year.

• (20) Employee share based payment

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

• (21) Income tax

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

• B. The current income tax expense is calculated on the basis of the tax laws substantively enacted at the balance sheet date where the Group operates and generates taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in accordance with applicable tax regulations. It establishes provisions where appropriate based on the amounts

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expected to be paid to the tax authorities. An additional tax is levied on the unappropriated retained earnings and is recorded as income tax expense in the year the stockholders resolve to retain the earnings.

• C. Deferred tax is recognised, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the parent company only balance sheet. However, the deferred tax is not accounted for if it arises from initial recognition of goodwill or of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred tax is determined using tax rates that have been substantially enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled.

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

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

(22) Share capital

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

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

(23) Dividends

• Dividends are recorded in the Group’s financial statements in the period in which they are resolved by the Group’s shareholders. Cash dividends are recorded as liabilities; stock dividends are recorded as stock dividends to be distributed and are reclassified to ordinary shares on the effective date of new shares issuance.

(24) Revenue recognition

• A. Sales of goods

• (a) The Company manufactures and sells multi-function peripherals, document scanners, network

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peripherals and related products. Sales are recognised when control of the products has transferred, being when the products are delivered to the customer, the customer has full discretion over the channel and price to sell the products, and there is no unfulfilled obligation that could affect the customer’s acceptance of the products. Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the customer, and either the customer has accepted the products in accordance with the sales contract, or the Company has objective evidence that all criteria for acceptance have been satisfied. As the time interval between the transfer of committed goods and the payment of customer does not exceed one year, the Group does not adjust the transaction price to reflect the time value of money.

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

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

B. Service revenue

• (a) The Group provides product maintenance services or design services. Revenue from providing services is recognised in the accounting period in which the services are rendered. For fixed-price contracts, revenue is recognised based on the actual service provided to the end of the reporting period as a proportion of the total services to be provided. This is determined based on the actual labour hours spent relative to the total expected labour hours. The customer pays at the time specified in the payment schedule. If the services rendered exceed the payment, a contract asset is recognised. If the payments exceed the services rendered, a contract liability is recognised.

• (b) The Group’s estimate about revenue, costs and progress towards complete satisfaction of a performance obligation is subject to a revision whenever there is a change in circumstances. Any increase or decrease in revenue or costs due to an estimate revision is reflected in profit or loss during the period when the management become aware of the changes in circumstances.

(25) Government grants

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

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(26) Operating segments

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The Group’s chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Board of Directors that makes strategic decisions.

5. Critical Accounting Judgements, Estimates and Key Sources of Assumption Uncertainty

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

(1) Impairment assessment of property, plant and equipment and right-of-use assets

The Group assesses impairment based on its subjective judgement and determines the separate cash flows of a specific group of assets, useful lives of assets and the future possible income and expenses arising from the assets depending on how assets are utilised and industrial characteristics. Any changes of economic circumstances or estimates due to the change of Group strategy might cause material impairment on assets in the future.

As of December 31, 2022, the carrying amount of property, plant and equipment and right-of-use assets was $675,672.

(2) Assessment of allowance for inventory valuation loss

• Due to the rapid technology innovation and the paperless trend in the market for development of environmental protection, energy saving and carbon reduction, inventories of the Group have a higher risk of incurring loss on decline in market value or obsolescence. Inventories are stated at the lower of cost and net realisable value. The management must determine the net realisable value of inventories on balance sheet date using judgements and estimates.

As of December 31, 2022, the carrying amount of inventories was $776,193.

6. Details of Significant Accounts

(1) Cash and cash equivalents

tails of Significant Accounts Cash and cash equivalents
Cash on hand and revolving funds Checking accounts and demand deposits Time deposits	December31,2022 804 $ 431,327 13,224 445,355 $	December 31, 2021
		886 $ 225,799 8,688
		235,373 $

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

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

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(2) Notes and accounts receivable

Notes receivable Accounts receivable due from general customers Less: Allowance for uncollectible accounts	December 31,2022 December 31,2021 2 $ 4 $ 836,724 $ 398,594 $ 49,077) ( 11,202) ( 787,647 $ 387,392 $

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

Not past due Up to 30 days 31 to 90 days 91 to 180 days 180 to 270 days 271 to 360 days Over 360 days	Accounts receivable Notesreceivable 579,598 $ 2 $ 128,639 - 61,397 - 24,354 - 41,934 - - - 802 - 836,724 $ 2 $ December31,2022	Accounts receivable Notes receivable 243,553 $ 4 $ 82,478 - 34,965 - 36,038 - - - 132 - 1,428 - 398,594 $ 4 $ December31,2021

The above ageing analysis was based on past due date

• B. As of December 31, 2022 and 2021, accounts receivable and notes receivable were all from contracts with customers. And as of January 1, 2021, the balance of receivables from contracts with customers amounted to $404,151.

• C. As at December 31, 2022 and 2021, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the Group’s notes and accounts receivable was the carrying amount.

• D. Information relating to credit risk of notes receivable and accounts receivable is provided in Note 12(3).

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

Items Non-current items: Equity instruments SOLIDLITE CORPORATION Henan Centrix Technology Co.,Ltd. eLCOs Microdisplay Technology Ltd. AETAS Technology Inc. OTO PHOTONICS INC. PROTECTLIFE INTERNATIONAL BIOMEDICAL INC. WIN CO E-TECHNOLOGY CORP. JimTec Group Holding Inc. Capsovision Inc. Yichun Yilian Print Tech Co., Ltd. Valuation adjustment of financial assets at fair value through other comprehensive income

December31,2022 December31,2021 12,816 $ 12,816 $ 9,713 9,713 2,343 2,343 1,015 1,015 18,344 17,206 13,375 13,375 3,000 3,000 2,999 2,999 49,282 49,282 130,321 130,321 243,208 242,070 146,021) ( 105,487) ( 97,187 $ 136,583 $

• A. The Group has elected to classify equity instruments investments that are considered to be strategic investments as financial assets at fair value through other comprehensive income. The fair value of such investments amounted to $97,187 and $136,583 as at December 31, 2022 and 2021, respectively.

• B. Aiming to satisfy the working capital needs, the Group sold $6,647 of equity instruments investments at fair value and resulted in $5,560 of cumulative losses on disposal during the year ended December 31, 2021.

fair value of such investments amounted to $97,187 and $136,583 as at December 31, 2022 and 2021, respectively. B. Aiming to satisfy the working capital needs, the Group sold $6,647 of equity instruments investments at fair value and resulted in $5,560 of cumulative losses on disposal during the year ended December 31, 2021.	fair value of such investments amounted to $97,187 and $136,583 as at December 31, 2022 and 2021, respectively. B. Aiming to satisfy the working capital needs, the Group sold $6,647 of equity instruments investments at fair value and resulted in $5,560 of cumulative losses on disposal during the year ended December 31, 2021.	fair value of such investments amounted to $97,187 and $136,583 as at December 31, 2022 and 2021, respectively. B. Aiming to satisfy the working capital needs, the Group sold $6,647 of equity instruments investments at fair value and resulted in $5,560 of cumulative losses on disposal during the year ended December 31, 2021.	fair value of such investments amounted to $97,187 and $136,583 as at December 31, 2022 and 2021, respectively. B. Aiming to satisfy the working capital needs, the Group sold $6,647 of equity instruments investments at fair value and resulted in $5,560 of cumulative losses on disposal during the year ended December 31, 2021.	fair value of such investments amounted to $97,187 and $136,583 as at December 31, 2022 and 2021, respectively. B. Aiming to satisfy the working capital needs, the Group sold $6,647 of equity instruments investments at fair value and resulted in $5,560 of cumulative losses on disposal during the year ended December 31, 2021.
C. Amounts recognised in profit or loss and other comprehensive income in relation to the financial
assets at fair value through other comprehensive income		are listed below:
Equity instruments at fair value		Year ended		Year ended
throughothercomprehensiveincome	December31,2022		December31,2021
Fair value change recognised in other
comprehensive income	($	45,826)	($	72,215)
Cumulative gains (losses) reclassified to retained
earnings due to derecognition	$	-	$	5,560

• D. The Group has no financial assets at fair value through other comprehensive income pledged to others.

• E. Information relating to fair value of financial assets at fair value through other comprehensive income is provided in Note 12(4).

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(4) Inventories

nventories
				December31,2022
					Allowance for
		Cost			valuation loss		Book value
Raw materials	$		327,983	($	46,505)	$	281,478
Semi-finished goods and work
in progress			142,435	(	19,588)		122,847
Finished goods			416,504	(	44,636)		371,868
Total	$		886,922	($	110,729)	$	776,193
				December 31, 2021
					Allowance for
		Cost			valuation loss		Bookvalue
Raw materials	$		394,346	($	50,986)	$	343,360
Semi-finished goods and work
in progress			160,759	(	17,728)		143,031
Finished goods			463,376	(	50,254)		413,122
Total	$	1,018,481		($	118,968)	$	899,513
The cost of inventories recognised as expense：
					Year ended December		31
				2022			2021
Cost of goods sold			$		2,076,961 $		2,216,893
Gain on reversal of decline
in market value		(			1,240) (		12,843)
Scrap loss					18,762		17,866
(Gain) loss on physical inventory		(			539)		2,462
Others					22,332		27,156
			$		2,116,276 $		2,251,534

The Group reversed a previous inventory write-down and accounted for as reduction of cost of goods sold because inventories with decline in market value were partially sold and scrapped for the year ended December 31, 2022 and 2021.

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(5) Property, plant and equipment

At January 1 Cost Accumulated depreciation and impairment Opening net book amount as at January 1 Additions Disposal Reclassifications Depreciation expense Net exchange difference Closing net book amount as at December 31 At December 31 Cost Accumulated depreciation and impairment At January 1 Cost Accumulated depreciation and impairment Opening net book amount as at January 1 Additions Disposal Reclassifications Depreciation expense Net exchage difference Closing net book amount as at December 31 At December 31 Cost Accumulated depreciation and impairment	Buildings and structures 811,615 $ 446,598) ( 365,017 $ 365,017 $ 732 - - 29,227) ( 2,065 338,587 $ 817,974 $ 479,387) ( 338,587 $	Buildings and structures 811,615 $ 446,598) ( 365,017 $ 365,017 $ 732 - - 29,227) ( 2,065 338,587 $ 817,974 $ 479,387) ( 338,587 $	Buildings and structures 811,615 $ 446,598) ( 365,017 $ 365,017 $ 732 - - 29,227) ( 2,065 338,587 $ 817,974 $ 479,387) ( 338,587 $	Buildings and structures 811,615 $ 446,598) ( 365,017 $ 365,017 $ 732 - - 29,227) ( 2,065 338,587 $ 817,974 $ 479,387) ( 338,587 $	Buildings and structures 811,615 $ 446,598) ( 365,017 $ 365,017 $ 732 - - 29,227) ( 2,065 338,587 $ 817,974 $ 479,387) ( 338,587 $	Buildings and structures 811,615 $ 446,598) ( 365,017 $ 365,017 $ 732 - - 29,227) ( 2,065 338,587 $ 817,974 $ 479,387) ( 338,587 $	Buildings and structures 811,615 $ 446,598) ( 365,017 $ 365,017 $ 732 - - 29,227) ( 2,065 338,587 $ 817,974 $ 479,387) ( 338,587 $
							Total 2,110,017 1,563,350) 546,667 546,667 34,040 5,337) - 84,451) 190) 490,729 2,018,915 1,528,186) 490,729
	Buildings Machinery and amd Transportation Office structures equipment equipment equipment 814,615 $ 1,144,179 $ 11,738 $ 24,407 $ $ 419,513) ( 1,056,746) ( 10,025) ( 20,857) ( ( 395,102 $ 87,433 $ 1,713 $ 3,550 $ $ 395,102 $ 87,433 $ 1,713 $ 3,550 $ $ - 12,178 1,128 604 - 5,175) ( 34) ( - ( - 41,279 - - ( 28,913) ( 48,629) ( 567) ( 963) ( ( 1,172) ( 1,475 103) ( 32) ( ( 365,017 $ 88,561 $ 2,137 $ 3,159 $ $ 811,615 $ 1,089,459 $ 11,461 $ 19,810 $ $ 446,598) ( 1,000,898) ( 9,324) ( 16,651) ( ( 365,017 $ 88,561 $ 2,137 $ 3,159 $ $				Others 115,078 $ 56,209) ( 58,869 $ 58,869 $ 20,130 128) ( 41,279) 5,379) ( 358) ( 31,855 $ 86,570 $ 54,715) ( 31,855 $
				$		$

A. There was no interest capitalised for the years ended December 31, 2022 and 2021.

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

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－ (6) Leasing arrangements lessee

• A. The Group leases various assets including land and buildings. Rental contracts are typically made for periods of 3 to 20 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose covenants, but leased assets may not be used as security for borrowing purposes.

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

Land Buildings Transportation equipment Land Buildings Transportation equipment		December 31, 2022 December 31, 2021 Carrying amount Carrying amount $ 145,696 $ 150,782 61,529 80,811 662 417 207,887 $ 232,010 $ YearendedDecember31	December 31, 2022 December 31, 2021 Carrying amount Carrying amount $ 145,696 $ 150,782 61,529 80,811 662 417 207,887 $ 232,010 $ YearendedDecember31
			2021
			Depreciationexpense
			$ 5,197 23,433 12
			28,642 $

• C. For the years ended December 31, 2022 and 2021, the additions to right-of-use assets were $3,871 and $429, respectively.

• D. Information on profit or loss in relation to lease contracts is as follows:

Items affecting profit or loss Interest expense on lease liabilities Expense on short-term lease contracts Expense on leases of low-value assets Gain on sublease of right-of-use assets	YearendedDecember31	YearendedDecember31
	2022 $ 3,586 13,198 $ 373 $ 503 $	2021
		$ 6,621
		14,004 $
		98 $
		503 $

• E. For the years ended December 31, 2022 and 2021, the Company’s total cash outflow for leases were $44,462 and $46,603, respectively.

• F. In determining the lease term, the Group takes into consideration all facts and circumstances that create an economic incentive to exercise an extension option or not to exercise a termination option. The assessment of lease period is reviewed if a significant event occurs which affects the assessment.

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(7) Short-term borrowings

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

Type of borrowings December 31, 2022 December 31, 2021
Unsecured bank borrowings $ 110,141 $ 100,000
Secured bank borrowings 697,121 454,895
Other unsecured short-term borrowings - 3,241
Total $ 807,262 $ 558,136
Interest rate range 2.2%~6.9133% 2.1%~3.8%
----- End of picture text -----

Information about the collateral that was pledged for secured bank borrowings is provided in Note 8.

(8) Other accounts payable

Salary and bonus accounts Pension Equipment accounts Others	December31,2022 December31,2021 78,611 $ 73,123 $ 2,993 3,126 20,145 953 88,362 102,369 190,111 $ 179,571 $

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- (9) Long term borrowings

Type ofborrowings Long-term bank borrowings Credit loans Taiwan Cooperative Financial Holding Co. Ltd. Credit loans First Commercial Bank Credit loans Bank of Panhsin Credit loans Chang Hwa Commercial Bank, Ltd. Other bank borrowings Credit loans Chailease Finance Co., Ltd. Less: Current portion	Borrowing period and repayment term Interestraterange Borrowing period is from October 25, 2021 to October 25, 2026; interest is repayable monthly. 2.1%~2.73% Borrowing period is from January3, 2022 to Januaryr 3; 2027 interest is repayable monthly. 1.5%~2.88% Borrowing period is from January 26, 2022 to January 15, 2025,; interest is repayable monthly. 2%~2.57% Borrowing period is from 2022 June, 30 to 2025 June, 30 ; interest is repayable monthly. 2.53% Borrowing period is from March 21, 2022 to March 21, 2024; interest is repayable monthly. 4.07%	Collateral December31,2022 None 17,179 $ None 24,741 None 20,833 None 16,757 Inventories 34,896 114,406 54,886) ( 59,520 $

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Borrowing period Type of borrowings and repayment term Interest rate range Collateral December 31, 2021 Long-term bank borrowings Credit loans Borrowing period is Taiwan from October 25, 2021 Cooperative to October 25, 2026; Financial Holding interest is repayable Co. Ltd. monthly. 2.1%~2.73% None $ 20,000 Less: Current portion ( 2,963) $ 17,037

Details of collateral for secured borrowings of Chailease Finance Co., Ltd. are provided in Note 8.

(10) Pensions

• A. (a) The Group has a defined benefit pension plan in accordance with the Labor Standards Act, covering all regular employees’ service years prior to the enforcement of the Labor Pension Act on July 1, 2005 and service years thereafter of employees who chose to continue to be subject to the pension mechanism under the Labor Standards Act. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement. The Company contributes monthly an amount equal to 2% of the employees’ monthly salaries and wages to the retirement fund deposited with Bank of Taiwan, the trustee, under the name of the independent retirement fund committee. Also, the Group would assess the balance in the aforementioned labor pension reserve account by December 31, every year. If the account balance is insufficient to pay the pension calculated by the aforementioned method to the employees expected to qualify for retirement in the following year, the Company will make contributions for the deficit by next March.

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

December 31, 2022 December 31, 2021 Present value of defined benefit obligations $ 186,147 $ 206,097 Fair value of plan assets ( 126,970) ( 116,322) Net defined benefit liability $ 59,177 $ 89,775

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

						2022
	Present value of
		defined benefit		Fair value of					Net defined
			obligations		planassets			benefitliability
At January 1		$	206,097	($		116,322)		$	89,775
Current service cost			1,127			-			1,127
Interest expense (income)			1,443	(		814)			629
			208,667	(		117,136)			91,531
Remeasurements:
Return on plan assets		$	-	($		8,410)	($		8,410)
Change in financial assumptions	(		9,243)			-	(		9,243)
Experience adjustments			3,305			-			3,305
	(		5,938)	(		8,410)	(		14,348)
Pension fund contribution			-	(		18,006)	(		18,006)
Paid pension	(		16,582)			16,582			-
At December 31		$	186,147	($		126,970)		$	59,177
						2021
	Present value of
		defined benefit		Fair value of					Net defined
			obligations		plan assets			benefit liability
At January 1		$	223,734	($		99,623)		$	124,111
Current service cost			1,344			-			1,344
Interest expense (income)			671	(		299)			372
			225,749	(		99,922)			125,827
Remeasurements:
Return on plan assets		$	-	($		1,388)	($		1,388)
Change in demographic assumptions			169			-			169
Change in financial assumptions	(		7,542)			-	(		7,542)
Experience adjustments	(		3,136)			-	(		3,136)
	(		10,509)	(		1,388)	(		11,897)
Pension fund contribution			-	(		24,155)	(		24,155)
Paid pension	(		9,143)			9,143			-
At December 31		$	206,097	($		116,322)		$	89,775

(d) The Bank of Taiwan was commissioned to manage the Fund of the Group’s defined benefit pension plan in accordance with the Fund’s annual investment and utilisation plan and the “Regulations for Revenues, Expenditures, Safeguard and Utilisation of the Labor Retirement Fund” (Article 6: The scope of utilisation for the Fund includes deposit in domestic or foreign financial institutions, investment in domestic or foreign listed, over-the-counter, or private placement equity securities, investment in domestic or foreign real estate securitisation products, etc.). With regard to the utilisation of the Fund, its minimum earnings in the annual

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distributions on the final financial statements shall be no less than the earnings attainable from the amounts accrued from two-year time deposits with the interest rates offered by local banks. If the earnings is less than aforementioned rates, government shall make payment for the deficit after being authorised by the Regulator. The Company has no right to participate in managing and operating that fund and hence the Group is unable to disclose the classification of plan assets fair value in accordance with IAS 19 paragraph 142. The composition of fair value of plan assets as of December 31, 2022 and 2021 is given in the Annual Labor Retirement Fund Utilisation Report announced by the government.

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

	Year ended December 31	Year ended December 31
	2022	2021
Discount rate	1.30%	0.70%
Future salary increases	4.00%	4.00%

Assumptions regarding future mortality experience are set based on the 6th Taiwan Standard Ordinary Experience Mortality Table for the years ended December 31, 2022.

Because the main actuarial assumption changed, the present value of defined benefit obligation is affected. The analysis was as follows ：

==> picture [449 x 121] intentionally omitted <==

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

Discount rate Future salary increases
Increase0.25% Decrease0.25% Increase0.25% Decrease0.25%
December 31, 2022
Effect on present value of
defined benefit obligation ($ 3,655) $ 3,768 $ 3,226 ($ 3,152)
Increase0.25% Decrease0.25% Increase0.25% Decrease0.25%
December 31, 2021
Effect on present value of
defined benefit obligation ($ 4,417) $ 4,563 $ 3,920 ($ 3,823)
----- End of picture text -----

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

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

• (f) Expected contributions to the defined benefit pension plans of the Company for the next year amount to $13,413.

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• (g) As of December 31, 2022, the weighted average duration of the retirement plan is 8 years. The analysis of timing of the future pension payment was as follows:

Within 1 year	$	19,812
1-2 year(s)		10,769
2-5 years		38,824
5-10 years		64,699
	$	134,104

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

  • (b) Avision (Suzhou) Co., Ltd. and Avision Digital Office Equipment (Shanghai) Trading Co.,Ltd., based on the regulations of according to the People's Republic of China, allocates pension insurance funds according to a certain percentage of the total salary of local employees every month. The appropriation ratio was 20% in 2021 and 2020. The pension of each employee is managed by the government.

  • (c) The pension costs under defined contribution pension plans of the Group for the years ended December 31, 2022 and 2021, were $61,064 and $56,570, respectively.

• (11) Share-based payment

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

Type ofarrangement	Grant date Quantity granted (share in thousands) 2021.05~ 10,000 2021.11 2022.12.27 2,000	Contract period	Vesting conditions
10th employee stock options Cash capital increase reserved for employee preemption		5 years Not applicated	2 years’ service vested 40% 3 years’ service vested 70% 4 years’ service vested 100% Immediate acquisition

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B. Details of the share-based payment arrangements are as follows:

No. of options Weighted-average (share in exercise price thousands) (indollars) Options outstanding at January 1 10,000 12.69 $ Options granted - - Options invalidated due to resignation 451) ( 12.69 Options outstanding at December 31 10,000 12.69 Options exercisable at December 31 - - 2022	No. of options Weighted-average (share in exercise price thousands) (indollars) - - $ 10,000 12.69 - - 10,000 12.69 - - 2021

• C. The expiry date and exercise price of stock options outstanding at balance sheet date are as follows:

follows:
Issue date approved	Expiry date		No. ofshares(inthousands) Exercise price(indollars) 6,000 $ 14.35 4,000 $ 10.20 December31,2022 No. ofshares(inthousands) Exercise price(in dollars) 6,000 $ 14.35 4,000 $ 10.20 December 31, 2021
2021.05 2021.11 Issue date approved	2026.05 2026.11 Expiry date
2021.05 2021.11	2026.05 2026.11

• D. The fair value of stock options granted on grant date is measured using the Black-Scholes optionpricing model. Relevant information is as follows:

Type of arrangement	Grant date	Stock price (in dollars)	Exercise price (in dollars)	Expected price volatility (Note)	Expected option life	Expected dividends	Risk-free interest rate	Fair value per share (in dollars)
Employee stock options Employee stock options	2021.05.03 2021.11.10	$ 10 10	14.35 $ 10.20	30.00%~ 47.00% 48.00%~ 63.00%	2.50-4.50 years 2.50-4.50 years	0.00% 0.00%	0.20%- 0.28% 0.36%- 0.41%	$2.7416 ~5.5586 3.0406 ~5.0994

Note: Expected price volatility rate was estimated by using the stock prices of the most recent period with length of this period approximate to the length of the stock options’ expected life, and the standard deviation of return on the stock during this period.

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E.Information on other equity interest measured at fair value:

Type of arrangement Cash capital increase reserved for employee preemption	Grant date 2022.12.17	Share price 11.70 $	Exercise price	Fair value per unit (in dollars)
			10.00 $	1.70 $

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

Equity-settled	YearendedDecember31	YearendedDecember31
	2022 15,600 $	2021
		5,795 $

(12) Share capital

• A. As of December 31, 2022, the Company’s authorised capital was $3,000,000, consisting of 300,000 thousand shares of ordinary stock (including 400,000 thousand shares reserved for employee stock options), and the paid-in capital was $2,132,211 with a par value of $10 (in dollars) per share.

Movements in the number of the Company’s ordinary shares outstanding are as follows:

		(unit: share in thousands)
	2022	2021
At January 1	189,248	179,248
Cash capital increase	23,777	10,000
At December 31	213,025	189,248

• B. To fulfill working capital, repay bank borrowings or meet capital needs of future development and consider mobility and flexibility in raising capital, the Company’s shareholders at their annual meeting on July 12, 2021 adopted a resolution to raise additional cash by issuing 10,000 thousand ordinary shares through private placement and authorised the Board of Directors to fully handle the capital increase within a year from the date of the resolution at their annual meeting.

The Company’s Board of Directors approved the private placement to be priced at NT$8.74 (in dollars) per share on September 3, 2021. The Company issued 10,000 thousand shares through the private placement and collected $87,400 of proceeds on September 6, 2021 (the effective date).

Pursuant to the Securities and Exchange Act, the ordinary shares raised through the private placement are subject to certain transfer restrictions and cannot be listed on the stock exchange until three years after they have been issued and have been offered publicly. Other than these restrictions, the rights and obligations of the ordinary shares raised through the private placement are the same as other issued ordinary shares.

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• C. To fulfill working capital, repay bank borrowings or meet capital needs of future development and consider mobility and flexibility in raising capital, the Company’s shareholders at their annual meeting on June 15, 2022 adopted a resolution to raise additional cash by issuing 20,000 thousand ordinary shares through private placement and authorised the Board of Directors to fully handle the capital increase within a year from the date of the resolution at their annual meeting.

• The Company’s Board of Directors approved the private placement to be priced at NT$8.736 (in dollars) per share on June 15, 2022. The Company issued 3,777 thousand shares through the private placement and collected $32,996 of proceeds on June 29, 2022 (the effective date). Pursuant to the Securities and Exchange Act, the ordinary shares raised through the private placement are subject to certain transfer restrictions and cannot be listed on the stock exchange until three years after they have been issued and have been offered publicly. Other than these restrictions, the rights and obligations of the ordinary shares raised through the private placement are the same as other issued ordinary shares.

• D. On March 18, 2022, the Company’s Board of Directors resolved to increase its capital, and increased 20,000 thousand shares and share capital of $200,000, with par value of $10 (in dollars), with the issuing price of $10 (in dollars) per share. The effective date was set on December 1, 2022. The registration has been completed on January 10, 2023.

• E. Treasury shares

• (a) Reason for share reacquisition was that those shares were held by the subsidiary, Quantum Investment Co.,Ltd. Movements in the number of the Company’s treasury shares (unit: in thousands) are as follows:

thousands) are as	follows:
At January 1/ December 31	Number of shares 196 December	Carrying amount $6,669 31,2022	December	31,2021
			Number of shares 196	Carrying amount
				$6,669

• (b) Shares of the parent company held by subsidiaries had no voting rights before being reissued.

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(13) Capital surplus

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

reserve is insufficient.	reserve is insufficient.	reserve is insufficient.
Changes in equity of associates and Employee joint ventures Stock Share stock accounted for using options premium options the equity method expired Total At January 1 - $ 5,795 $ 63 $ 71,597 $ 77,455 $ Cash capital increase 840) ( - - - 840) ( Share-based payments 3,060 12,200 - 340 15,600 At December 31 2,220 $ 17,995 $ 63 $ 71,937 $ 92,215 $ 2022 Changes in equity of associates and joint ventures accounted Employee stock for using the Stock options options equity method expired Total At January 1 - $ 63 $ 71,597 $ 71,660 $ Share-based payments 5,795 - - 5,795 At December 31 5,795 $ 63 $ 71,597 $ 77,455 $ 2021			Employee stock options 5,795 $ - 12,200 17,995 $		Changes in equity of associates and joint ventures accounted for using the equity method 63 $ - - 63 $ 2022 2021		Stock options expired Total 71,597 $ 77,455 $ - 840) ( 340 15,600 71,937 $ 92,215 $
					$
	$				$
					2021
		Employee stock options - $ 5,795 5,795 $		Changes in equity of associates and joint ventures accounted for using the equity method 63 $ - 63 $		Stock options expired 71,597 $ $ - 71,597 $ $		Total 71,660 5,795 77,455

(14) Retained earnings

• A. Under the Company’s Articles of Incorporation, the current year’s earnings, if any, shall first be used to pay income tax and offset operating losses and then 10% of the remaining amount shall be set aside as legal reserve until the legal reserve equals the paid-in capital. After that, special reserve shall be set aside or reverse in accordance with the regulations or resolution of shareholders. The remainder, if any, along with prior years’ accumulated undistributed earnings, with a limit of 5% to 70%, shall be proposed by the Board of Directors to the shareholdings’ meeting for approval. Earnings distributed in the form of cash shall be resolved by the Board of Directors and earnings distributed in the form of shares shall be resolved by the shareholders according to the requirements.

• B. The Company’s dividend policy is summarised below ：

• As the Company operates in a volatile business environment and is in the stable growth stage, the distribution ratio of stock dividends and cash dividends will be determined based on the Group’s future capital expenditures budget and capital needs to consider the Company’s future capital needs and long-term financial plan and maximise the shareholders’ equity. The Company

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distributes dividends following the aforementioned policy. However, when there are cash dividends distributed, the total amount of cash dividends distributed is between 10% and 100% of the total dividends distributed.

The Company shall distribute earnings or compensate deficit after the end of every half fiscal year according to the Company Act. When distributing earnings, the Company shall first estimate and reserve taxes payable, offset operating losses and set aside legal reserve. Earnings distributed in the form of cash shall be resolved by the Board of Directors and earnings distributed in the form of shares shall be resolved by the shareholders according to the requirements.

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

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

• E. The Company will not distribute dividends as the shareholders resolved the deficit compensation for 2022 and 2021 at their meeting on June 15, 2022 and July 12, 2021, respectively. The deficit compensation for 2022 was proposed by the Board of Directors on March 23, 2023 and is yet to be resolved by the shareholders’ meeting in 2023.

• Information about deficit compensation of the Company as approved by the Board of Directors and resolved by the shareholders will be posted in the “Market Observation Post System” at the website of the Taiwan Stock Exchange.

(15) Other equity items

Other equity items
				2022
			Unrealised gains
				(losses) on
	Currency	translation		valuation		Total
At January 1	$	36,903	($	117,459)	($	80,556)
Revaluation – the Group		-	(	45,826)	(	45,826)
Currency translation differences:
–The Group	(	3,064)		-	(	3,064)
At December 31	$	33,839	($	163,285)	($	129,446)

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					2021
				Unrealised gains
		Currency			(losses) on
		translation			valuation		Total
At January 1	$	56,090	($		50,804)		5,286 $
Revaluation – the Group		-	(		72,215)	(	72,215)
Revaluation transferred to		-			5,560		5,560
retained earnings
Currency translation differences:
–The Group	(	19,187)			-	(	19,187)
At December 31	$	36,903	($		117,459)	80,556) ($

(16) Operating revenue

Operating revenue
	Year ended	December 31
Revenue from contracts with customers	2022 2,832,440 $	2021 2,828,116 $

A. Disaggregation of revenue from contracts with customers

The Group derives revenue as follows:

	Revenue recognised	Revenue recognised	Revenue recognised	Revenue recognised	Revenue recognised
2022			at apoint in time		over time			Total
Total segment revenue
Taiwan		$	1,222,666	$	-		$	1,222,666
Germany			1,279,295		-			1,279,295
USA			509,572		-			509,572
China			1,424,896		21,705			1,446,601
Brazil			82,894		-			82,894
Japan			32,016		-			32,016
Others			422,943		-			422,943
Inter-segment revenue	(		2,163,547)		-	(		2,163,547)
Revenue from external
customer contracts		$	2,810,735	$	21,705		$	2,832,440
	Revenue recognised			Revenue recognised
2021			at apoint in time		over time			Total
Total segment revenue
Taiwan		$	854,743	$	-		$	854,743
Germany			426,504		-			426,504
USA			410,141		-			410,141
China			2,125,009		33,938			2,158,947
Brazil			57,493		-			57,493
Japan			31,552		-			31,552
Others			287,399		-			287,399
Inter-segment revenue	(		1,398,663)		-	(		1,398,663)
Revenue from external
customer contracts		$	2,794,178	$	33,938		$	2,828,116

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• B. Contract assets and liabilities

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

December 31, 2022 December 31, 2021 January 1, 2021 Contract liabilities $ 37,191 $ 80,949 $ 113,569

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

Year ended December 31 2022 2021 Revenue recognised that was included in the contract liability balance at the beginning of the year $ 73,921 $ 56,573

(17) Interest income

Interest income：

Interest income from bank deposits Interest income from financial assets measured at amortised cost

YearendedDecember31	YearendedDecember31
2022 1,577 $ 76 1,653 $	2021
	5,647 $ 57
	5,704 $

(18) Other income

Government grants Other income, others

YearendedDecember31	YearendedDecember31
2022 3,508 $ 12,431 15,939 $	2021
	6,573 $ 8,859
	15,432 $

(19) Other gains and losses

Gains on disposals of property, plant and equipment Foreign currency exchange gain (loss) Other gains and losses

		YearendedDecember	YearendedDecember	YearendedDecember	31
		2022			2021
	$	44		$		3,093
		30,938	(			1,690)
(		2,983)	(			2,356)
	$	27,999	($			953)

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(20) Finance costs

Bank borrowings Other borrowings Lease liabilities

	Year ended	December	31
	2022		2021
$	27,678	$	18,998
	1,575		2
	3,586		6,621
$	32,839	$	25,621

(21) Expenses by nature

Expenses by nature
Employee benefit expense Employee benefit expense Depreciation expense Amortisation expense Wages and salaries Share-based payments Labour and health insurance fees Pension costs Other personnel expenses	2022 2021 847,130 $ 835,542 $ 113,391 113,093 32,047 10,923 992,568 $ 959,558 $ Year ended December31 YearendedDecember31
	2022 701,842 $ 15,600 31,745 62,820 35,123 847,130 $	2021
		700,985 $ 5,795 31,328 56,570 40,864
		835,542 $

(22) Employee benefit expense

• A. In accordance with the Articles of Incorporation of the Company, a ratio of distributable profit of the current year shall be distributed as employees’ compensation and directors’ remuneration. The ratio shall be 6% for employees’ compensation and shall not be higher than 2% for directors’ remuneration. If the Company has accumulated losses, profit should be reserved to cover losses first.

Whether the aforementioned employees’ compensation shall be distributed in the form of shares or in cash shall be resolved by the Board of Directors with a majority vote at its meeting attended by two-thirds of the total number of directors and reported to the shareholders’ meeting. In addition, the Articles of Incorporation shall specify the employees that are entitled to receive the aforementioned shares or cash, including the employees of subsidiaries who meet specific requirements.

• B. For the years ended December 31, 2022 and 2021, the Company did not accrue employees’ compensation and directors’ remuneration as it had accumulated deficit.

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

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(23) Income tax

A. Income tax benefit

(a) Components of income tax benefit:

e tax ome tax benefit Components of income tax benefit:
		Year ended December				31
		2022				2021
Current tax:
Current tax on profits for the year		$	-		$	-
Impact of changes in applicable tax
rates			-			3,447
Tax on undistributed surplus earnings			467			-
Withholding income tax on source of
foreign income			2,617			23
Prior year income tax underestimation			2,008			1,175
Total current tax			5,092			4,645
Deferred tax:
Origination and reversal of temporary
differences	(		14,740)	(		10,907)
Effect from tax losses			-			-
Total deferred tax	(		14,740)	(		10,907)
Income tax benefit	($		9,648)	($		6,262)

(b) Reconciliation between income tax expense and accounting profit

		Year ended December	Year ended December	31
		2022		2021
Tax calculated based on profit before
tax and statutory tax rate	($	14,164)	($		20,098)
Effect from items disallowed by the
regulation	(	5,335)	(		2,074)
Tax exempt income by tax regulation		-	(		723)
Prior year income tax underestimation		2,008			1,175
Temporary difference not recognised
as deferred tax assets	(	4,648)	(		4,755)
Taxable loss not recognised as
deferred tax assets	(	1,983)	(		11,638)
Withholding income tax on source of
foreign income		2,617			23
Tax losses not recognized as deferred
tax assets		11,390			31,828
Tax on undistributed surplus earnings		467			-
Income tax benefit	($	9,648)	($		6,262)

(c) The income tax (charge)/credit relating to components of other comprehensive income: None.

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B. Amounts of deferred tax assets or liabilities as a result of temporary differences and tax losses:

Temporary differences: －Deferred tax assets: Unrealized loss on market price decline and slow- moving inventory Others Tax losses Temporary differences: －Deferred tax assets: Unrealized loss on market price decline and slow- moving inventory Others Tax losses	Recognised in January 1 profit or loss 4,654 $ 68 $ 2,455 141) ( 6,510 296) ( 13,619 $ 369) ($ 2022 Recognised in January1 profit or loss 7,984 $ 3,330) ($ 2,037 418 7,273 763) ( 17,294 $ 3,675) ($ 2021	Recognised in other comprehensive income - $ - - - $ Recognised in other comprehensive income - $ - - - $	December 31
			4,722 $ 2,314 6,214
			13,250 $
			December31
			4,654 $ 2,455 6,510
			13,619 $

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

		December31,2022	December31,2022
Year incurred 2010 2011 2012 2013 2013 2014 2015 2016 2016 2016 2017 2017 2017 2018 2018 2019 2019 2020 2020 2021 2022		Amount assessed / filed 20,730 $ 4,055 8,363 821 196,668 199,011 76,074 390 248,588 34,422 14,746 411,043 2,229 572 360,210 62,528 37,173 393,599 55,645 19 56,950 2,224,848 $	Unused amount 20,730 $ 4,055 8,363 821 196,668 199,011 76,074 390 248,588 34,422 14,746 411,043 2,229 572 360,210 62,528 37,173 393,599 55,645 19 56,950 2,224,848 $	Unrecognised deferred taxassets 1,546 $ - - - 196,668 199,011 76,074 - 248,588 34,422 14,746 411,043 - 572 360,210 62,528 37,173 393,599 55,645 19 56,950 2,189,806 $	Expiry year
					2030 2031 2032 2033 2023 2024 2025 2036 2026 2026 2027 2027 2037 2028 2028 2029 2029 2030 2030 2031 2032

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December 31, 2021

Year incurred 2010 2010 2011 2012 2013 2013 2014 2015 2016 2016 2016 2016 2017 2017 2017 2018 2018 2019 2019 2020 2020 2021 2021		Amount assessed / filed 20,730 $ 368 4,055 8,363 821 196,668 199,011 76,074 390 248,588 40,644 34,422 14,746 411,043 2,229 572 360,210 62,528 37,173 393,599 55,645 19 148,511 2,316,409 $	Unused amount 20,730 $ 368 4,055 8,363 821 196,668 199,011 76,074 390 248,588 40,644 34,422 14,746 411,043 2,229 572 360,210 62,528 37,173 393,599 55,645 19 148,511 2,316,409 $	Unrecognised deferred tax assets 1,546 $ 368 - - - 196,668 199,011 76,074 - 248,588 40,644 34,422 14,746 411,043 - 572 360,210 62,528 37,173 393,599 55,645 19 148,511 2,281,367 $	Expiry year
					2030 2030 2031 2032 2033 2023 2024 2025 2036 2026 2026 2026 2027 2027 2037 2028 2028 2029 2029 2030 2030 2031 2031

• D. The amounts of deductible temporary difference that are not recognised as deferred tax assets are as follows:

as follows:
Deductible temporary differences	December31,2022 172,580 $	December31,2021
		171,798 $

• E. Income tax returns through 2020 of the Company and its subsidiary, Quantum Investment Co.,Ltd., both have been assessed and approved by the Tax Authority.

• (24) Loss per share

• A. Employee stock options for the years ended December 31, 2022 and 2021 had no dilutive effect and were not included in the calculation.

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B. Weighted average number of treasury shares outstanding had been deducted from weighted average number of ordinary shares outstanding for the years ended December 31, 2022 and 2021. Year ended December 31, 2022 Weighted average number of ordinary Losses per shares outstanding share Amount after tax (share in thousands) (in dollars) Basic and diluted losses per share Loss attributable to ordinary shareholders of the parent ($ 32,399) 192,806 ($ 0.17) Year ended December 31, 2021 Weighted average number of ordinary Losses per shares outstanding share Amount after tax (share in thousands) (in dollars) Basic and diluted losses per share Loss attributable to ordinary shareholders of the parent ($ 125,928) 182,426 ($ 0.69)

(25) Supplemental cash flow information

Investing activities with partial cash payments

		Year ended December	Year ended December	Year ended December	31
		2022			2021
Purchase of property, plant and
equipment		$	56,768	$	34,040
Add: Opening balance of payable on
equipment			953		2,518
Less: Ending balance of payable on
equipment	(		20,410)	(	953)
Cash paid during the year		$	37,311	$	35,605

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(26) Changes in liabilities from financing activities

Changes in liabilities from financing activities	Changes in liabilities from financing activities	Changes in liabilities from financing activities	Changes in liabilities from financing activities	Changes in liabilities from financing activities
Short-term borrowings Long-term borrowings (including currentportion) Short-term notes and billspayable Lease liabilities Guarantee deposits received Liabilities from financing activities-gross At January 1 558,136 $ 20,000 $ - $ 230,561 $ 1,490 $ 810,187 $ Changes in cash flow from financing activities 263,529 94,405 25,000 - 24 382,958 Increase in lease debt - - - 3,871 - 3,871 Payment of lease principal - - - 27,305) ( - 27,305) ( Interest expense - - - 3,586 - 3,586 Interest paid - - - 3,586) ( - 3,586) ( Effect of exchange rate change 14,403) ( - - 1,188 - 13,215) ( At December 31 807,262 $ 114,405 $ 25,000 $ 208,315 $ 1,514 $ 1,156,496 $ 2022 Short-term borrowings Long-term borrowings (including currentportion) Lease liabilities Guarantee deposits received Liabilities from financing activities-gross At January 1 577,118 $ - $ 256,822 $ 2,300 $ 836,240 $ Changes in cash flow from financing activities. 15,584) ( 20,000 - - 4,416 Increase in lease debt - - 322 - 322 Decrease in guarantee deposits paid - - - 810) ( 810) ( Payment of lease principal - - 25,880) ( - 25,880) ( Interest expense - - 6,621 - 6,621 Interest paid - - 6,621) ( - 6,621) ( Effect of exchange rate change 3,398) ( - 703) ( - 4,101) ( At December 31 558,136 $ 20,000 $ 230,561 $ 1,490 $ 810,187 $ 2021						Short-term notes and billspayable Lease liabilities - $ 230,561 $ 25,000 - - 3,871 - 27,305) ( - 3,586 - 3,586) ( - 1,188 25,000 $ 208,315 $ 2022 2021
	paid
			Long-term borrowings (including currentportion)				Lease liabilities	Guarantee deposits received
		577,118 $ 15,584) ( - - - - - 3,398) ( 558,136 $		- $ 20,000 - - - - - - 20,000 $			256,822 $ - 322 - 25,880) ( 6,621 6,621) ( 703) ( 230,561 $	2,300 $ - - 810) ( - - - - 1,490 $			836,240 $ 4,416 322 810) ( 25,880) ( 6,621 6,621) ( 4,101) ( 810,187 $

7. Related Party Transactions

(1) Names of related parties and relationship

Names of related parties Relationship with the Company SHENG,SHAO-LAN Chairman of the board

(2) Significant related party transactions

Borrowing from relationships:

SHENG,SHAO-LAN			December31,2022	December31,2022		Interest expense
		Ending balance - $	Loan 19,500 $	Contract period 2022/1/26 ~2023/1/26	Rate 2.10%
						168 $

At December 31, 2021: None.

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(3) Key management compensation

		Yearended	December31
		2022		2021
Salaries and other short-term
employee benefits	$	29,251	$	22,984
Post-employment benefits		755		-
Share-based payments		1,002		476
	$	31,008	$	23,460

8. Pledged Assets

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

Pledged asset Time deposits (shown as “current financial assets at amortised cost) Inventory Property, plant and equipment Guarantee deposits paid	Book	December31,2021 Purpose 7,000 $ Performance guarantee for land lease - Other long-term borrowings 364,958 Short-term borrowings and credit line 2,824 Other long-term borrowings and performance guarantee 374,782 $ value	Purpose
	December31,2022 7,000 $ 34,896 400,449 10,678 453,023 $

1. Significant Contingent Liabilities and Unrecognised Contract Commitments

None.

10. Significant Disaster Loss

None.

11. Significant Events after the Balance Sheet Date

On March 23, 2023, the Board of Directors resolved to increase its capital through private placement

by issuing 20 million shares, which is yet to be resolved by the shareholders.

12. Others

(1) Countermeasures to improve operating and financial condition

The Company incurred losses of NT$32,399 thousand for the year ended December 31, 2022. As of December 31, 2022, the accumulated deficit balance amounted to NT$924,847 thousand. However, due to the deficit in recent years, the Company intends to implement the following measures to improve the Company’s operations and financial condition ：

A. Actively developing business

Under the technical support of our existing products, the Company actively developed new customers and product cooperation projects and will endeavour to continually increase our shipments in the future, in order to bring growth momentum to our future operations.

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B. Adjust operation strategies

Optimize the purchasing and producing process, calculate the minimum production volumes to reduce excessive raw material purchases through integrating orders for the same products, actively closeout inventory and increase inventory turnover.

• C. Capital financing plan

• (a) The Company has been maintaining good credit relationships with correspondent banks and based on the history record and experience, the Company will actively apply for renewal of existing financing limit from financial institutions. Additionally, the Company pledged the property as collateral to obtain new financing limits in order to make the capital movement flexibly.

• (b) Obtained financing limits from non-financial institutions through negotiating to increase the space for capital movement.

• (c) On March 23, 2023, the Board of Directors resolved to issue ordinary shares to raise the capital.

D. Assets revitalization

The Company makes more effective utilization (including the possibility of leasing or selling) of the Company’s existing tangible assets, such as, land, factories and premises (including three plants in Hsinchu and Suzhou). Additionally, the Company negotiated for selling patent-related intellectual property rights and other intangible assets or collecting royalties from the aforementioned intangible assets. For the reinvestment, the Company is also actively seeking for counterparties to dispose of its shareholdings in order to obtain cash inflows. The Company has disposed part of financial assets at fair value through other comprehensive income to obtain cash inflows.

The Company assesses that the implementation of the above countermeasures will effectively improve its operations and financial condition and that there is no significant uncertainty regarding events or circumstances that may cause significant doubt on the Company’s ability to continue as a going concern.

(2) Capital management

The Group’s objectives when managing capital are to safeguard the Company’s ability to continue as a going concern in order to provide returns for shareholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt. During the year ended December 31, 2022, the Company’s strategy, which was unchanged from 2021, was to maintain the gearing ratio within 50%.

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(3) Financial instruments

A. Financial instruments by category

Financial assets Financial assets at fair value through other comprehensive income Financial assets at amortised cost Cash and cash equivalents Financial assets at amortised cost Notes receivable Accounts receivable Other receivables Guarantee deposits paid Financial liabilities Financial liabilities at amortised cost Short-term borrowings Short-term notes and bills payable Accounts payable Other payables Long-term borrowings (including current portion) Guarantee deposits received Lease liability	December31,2022 97,187 $ 445,355 7,000 2 787,647 23,855 10,678 1,371,724 $ 807,262 $ 25,000 283,825 190,111 114,406 1,514 1,422,208 $ 208,315 $	December31,2021
		136,583 $ 235,373 7,000 4 387,392 37,271 2,824
		806,447 $
		558,136 $ - 394,799 179,571 20,000 1,490
		1,153,996 $
		230,561 $

B. Financial risk management policies

• (a) The Group’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk, interest rate risk and price risk), credit risk and liquidity risk.

• (b) Risk management is carried out by a central treasury department (the Company treasury) under policies approved by the Board of Directors. Company treasury identifies, evaluates and hedges financial risks in close co-operation with the Company’s operating units. The Board provides written principles for overall risk management, as well as written policies covering specific areas and matters, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity.

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• C. Significant financial risks and degrees of financial risks

• (a) Market risk

Exchange rate risk

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

• ii. Management has set up a policy to require companies to manage their foreign exchange risk against their functional currency. The companies are required to hedge their entire foreign exchange risk exposure with the Company treasury. Foreign exchange risk arises when future commercial transactions or recognised assets or liabilities are denominated in a currency that is not the entity’s functional currency.

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

fluctuations is as follows：
(Foreign currency: functional currency) Financial assets Monetary items USD: NTD EUR: NTD JPY: NTD RMB: NTD USD: RMB Non-monetary items USD: NTD Financial liabilities Monetary items USD: NTD USD: RMB	December31,2022
	Foreign currency amount (In thousands) 23,645 $ 1,277 820 153 33,933 338 $ 31,884 $ 9,445	Exchange rate 30.71 32.72 0.23 4.408 6.670 30.71 30.71 6.670	Book value (in thousands of New Taiwan Dollars)
			726,138 $ 41,783 191 674 226,333 10,378 979,158 $ 290,056

~61~

(Foreign currency: functional currency) Financial assets Monetary items USD: NTD EUR: NTD JPY: NTD RMB: NTD USD: RMB Non-monetary items USD: NTD Financial liabilities Monetary items USD: NTD USD: RMB	Book value (in thousands Foreign currency of New amount Exchange Taiwan (Inthousands) rate Dollars) 13,495 $ 27.68 373,542 $ 219 31.32 6,859 2,259 0.2405 543 6,762 4.344 29,374 31,709 6.372 877,705 464 $ 27.68 12,849 $ 31,469 $ 27.68 871,062 $ 4,329 6.372 119,827 December31,2021	Book value (in thousands Foreign currency of New amount Exchange Taiwan (Inthousands) rate Dollars) 13,495 $ 27.68 373,542 $ 219 31.32 6,859 2,259 0.2405 543 6,762 4.344 29,374 31,709 6.372 877,705 464 $ 27.68 12,849 $ 31,469 $ 27.68 871,062 $ 4,329 6.372 119,827 December31,2021
		373,542 $ 6,859 543 29,374 877,705 12,849 $ 871,062 $ 119,827

iv. The total exchange gain and (loss), including realised and unrealised, arising from significant foreign exchange variation on the monetary items held by the Group for the years ended December 31, 2022 and 2021, amounted to $30,938 and ($1,690), respectively.

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

variation：
(Foreign currency: functional currency) Financial assets Monetary items USD: NTD EUR: NTD JPY: NTD RMB: NTD Non-monetary items USD: NTD Financial liabilities Monetary items USD: NTD USD: RMB (Foreign currency: functional currency) Financial assets Monetary items USD: NTD EUR: NTD JPY: NTD RMB: NTD USD: NTD Non-monetary items Investments accounted for under equity method USD: NTD Financial liabilities Monetary items USD: NTD USD: RMB	Effect on other Degree of Effect on comprehensive variation profit or loss income 1% 7,261 $ - $ 1% 418 - 1% 2 - 1% 7 - 2,209 1% - $ 104 $ 1% 9,664 $ - $ 1% 1,329 - Year ended December31,2022 Sensitivity analysis YearendedDecember31,2021
		Sensitivity analysis
	Degree of Effect on variation profit or loss 1% 3,735 $ 1% 69 1% 5 1% 294 1% 8,777 1% - $ 1% 8,711) ($ 1% 1,198) (		Effect on other comprehensive income
			- $ - - - - 128 $ - $ -

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Price risk

• i. The Group’s equity securities, which are exposed to price risk, are the held financial assets at fair value through profit or loss and financial assets at fair value through other comprehensive income. To manage its price risk arising from investments in equity securities, the Group diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Group.

• ii. The Group’s investments in equity securities comprise shares issued by the domestic companies. The prices of equity securities would change due to the change of the future value of investee companies. If the prices of these equity securities had increased/decreased by 10% with all other variables held constant, other components of equity would have increased/decreased by $9,719 and $13,658, respectively, as a result of other comprehensive income classified as equity investment at fair value through other comprehensive income.

Cash flow and fair value interest rate risk

• i. The Group’s main interest rate risk arises from borrowings with variable rates, which expose the Company to cash flow interest rate risk. During 2022 and 2021, the Group’s borrowings at variable rate were mainly denominated in New Taiwan dollars and US Dollars.

• ii. The Group’s borrowings are measured at amortised cost. The borrowings are periodically contractually repriced and to that extent are also exposed to the risk of future changes in market interest rates.

• iii. If the borrowing interest rate had increased/decreased by 1% with all other variables held constant, profit, net of tax for the years ended December 31, 2022 and 2021 would have increased/decreased by $7,065 and $4,459, respectively. The main factor is that changes in interest expense result in floating-rate borrowings.

• (b) Credit risk

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

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

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• iii. In line with credit risk management procedure, when the counterparty’s contract payments are past due over 365 days, the default has occurred.

• iv. The Group adopts the assumptions under IFRS 9, if the contract payments were past due over 30 days based on the terms, there has been a significant increase in credit risk on that instrument since initial recognition.

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

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

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

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

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

• vi. The Group classifies customer’s accounts receivable in accordance with credit rating of customer. The Group applies the modified approach using a provision matrix to estimate expected credit loss.

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

• viii. The Group used the forecastability of Taiwan Institute of Economic Research boom observation report to adjust historical and timely information to assess the default possibility of accounts receivable (including related parties). On December 31, 2022 and 2021, the provision matrix is as follows:

At December 31, 2022 Not past due Up to 30 days 31~90 days 91~180 days 181~270 days 271~360 days Over 360 days	Expected loss rate 0.10% 1.97% 3.62% 4.14% 100.00% - 100.00%	Total book value 579,598 $ 128,639 61,397 24,354 41,934 - 802 836,724 $	Loss allowance 580 $ 2,531 2,223 1,008 41,934 - 802
			49,077 $

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==> picture [421 x 135] intentionally omitted <==

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

At December 31, 2021 Expected loss rate Total book value Loss allowance
Not past due 0.10% $ 243,553 $ 244
Up to 30 days 2.33% 82,478 1,925
31~90 days 7.52% 34,965 2,629
91~180 days 13.58% 36,038 4,894
180~270 days 38.14% - -
271~360 days 62.71% 132 83
Over 360 days 100.00% 1,428 1,428
$ 398,594 $ 11,202
----- End of picture text -----

• ix. Movements in relation to the Group applying the modified approach to provide loss allowance for accounts receivable are as follows:

			2022
			Accounts receivable
At January 1		$	11,202
Provision for impairment			39,344
Amount written off due to	(		1,244)
irrecoverability
Effect of foreign exchange	(		225)
At December 31		$	49,077
			2022
			Accounts receivable
At January 1		$	11,445
Reversal of impairment loss	(		292)
Effect of foreign exchange			49
At December 31		$	11,202

(c) Liquidity risk

• i. Cash flow forecasting is performed in the operating entities of the Group and aggregated by Group treasury. Group treasury monitors rolling forecasts of the Group’s liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times so that the Group does not breach borrowing limits or covenants (where applicable) on any of its borrowing facilities. Such forecasting takes into consideration the Group’s debt financing plans, covenant compliance, compliance with internal balance sheet ratio targets.

• ii.The Group has the following undrawn borrowing facilities:

NTD	December31,2022 101,899 $	December31,2021
		130,000 $

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

Non-derivative financial liabilities

December31,2022 Short-term borrowings Short-term notes and bills payable Accounts payable Other payables Lease liability Long-term borrowings (including current portion)	Between 1 Less than and 5 Over 5 1year years years 807,262 $ - $ - $ 25,000 - - 283,825 - - 190,111 - - 33,322 68,657 153,036 54,886 59,520 -

Non-derivative financial liabilities

Non-derivative financial liabilities
December31,2021 Short-term borrowings Accounts payable (including related parties) Other payables (including related parties) Lease liability Long-term borrowings (including current portion)	Less than 1year 558,136 $ 394,799 179,571 51,429 2,963	Between 1 and 5 years - $ - - 91,873 17,037	Over 5 years
			- $ - - 159,763 -

(4) Fair value information

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

• Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. A market is regarded as active where a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. The fair value of the Group’s investment in listed stocks, beneficiary certificate is included in Level 1.

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

• Level 3: Unobservable inputs for the asset or liability. Other than those equity investments

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without active market whose fair value are included in level 2, the fair value of equity investments without active market are included in Level 3.

• B. The carrying amounts of cash, notes receivable, accounts receivable, other receivables, long-term and short-term borrowings, notes payable, accounts payable, other payables and lease liabilities are approximate to their fair values.

• C. The related information of financial and non-financial instruments measured at fair value by level on the basis of the nature, characteristics and risks of the assets and liabilities at December 31, 2022 and 2021 are as follows:

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

==> picture [428 x 204] intentionally omitted <==

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

December 31, 2022 Level 1 Level 2 Level 3 Total
Assets
Recurring fair value measurements
Financial assets at fair value through
other comprehensive income
Equity securities $ - $ - $ 97,187 $ 97,187
December 31, 2021 Level 1 Level 2 Level 3 Total
Assets
Recurring fair value measurements
Financial assets at fair value through
other comprehensive income
Equity securities $ - $ - $136,583 $136,583
----- End of picture text -----

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

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

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

• iii. The output of valuation model is an estimated value and the valuation technique may not be able to capture all relevant factors of the Group’s financial and non-financial instruments. Therefore, the estimated value derived using valuation model is adjusted accordingly with additional inputs, for example, model risk or liquidity risk and etc. In accordance with the Group’s management policies and relevant control procedures relating to the valuation models used for fair value measurement, management believes

~68~

adjustment to valuation is necessary in order to reasonably represent the fair value of financial and non-financial instruments at the consolidated balance sheet. The inputs and pricing information used during valuation are carefully assessed and adjusted based on current market conditions.

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

			Equity instrument
At January 1,2022	$		136,583
Acquire for the year			1,138
Losses recognised in other comprehensive income	(		45,826)
Effect of exchange rate changes			5,292
At December 31,2022	$		97,187
			Equityinstrument
At January 1,2021		$	216,435
Disposals for the year	(		6,647)
Losses recognised in other comprehensive income	(		72,215)
Effect of exchange rate changes	(		990)
At December 31,2021		$	136,583

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

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

• G. Treasury segment is in charge of valuation procedures for fair value measurements being categorised within Level 3, which is to verify independent fair value of financial instruments. Such assessment is to ensure the valuation results are reasonable by frequently calibrating valuation model and updating inputs used to the valuation model and making any other necessary adjustments to the fair value

~69~

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

Equity instrument: Unlisted shares Equity instrument: Unlisted shares	Fair value at December 31, 2022	Valuation technique Market comparable companies Valuation technique	Significant unobservable input	Range 0.97~4.2 20%~40% Range	Relationship of inputs to fairvalue The higher the multiple, the higher the fair value; The higher the discount for lack of marketability,the lower the fair value. Relationship of inputs to fairvalue
	97,187 $ Fair value at December 31, 2021		Price to book ratio multiple Discount for lack of marketability Significant unobservable input
	136,583 $	Market comparable companies	Price to book ratio multiple Discount for lack of marketability	0.72~6.08 20%~40%	The higher the multiple, the higher the fair value; The higher the discount for lack of marketability,the lower the fair value.

~70~

• I. The Group has carefully assessed the valuation models and assumptions used to measure fair value. However, use of different valuation models or assumptions may result in different measurement. The following is the effect of profit or loss or of other comprehensive income from financial assets and liabilities categorised within Level 3 if the inputs used to valuation models have changed:

changed:
Financial assets Equity instrument Financial assets Equity instrument	Input	Change	Favourable change Unfavourable change Favourable change Unfavourable change $ - $- $ 384 ($ 384) December 31,2022 Recognised in profit or loss Recognised in other comprehensive income December 31,2021
				Unfavourable change $-
	Multipliers and discounts Input	±1 Change			$ 384 31,2021	($ 384)
				December
			Recognised in profit or loss		Recognised in other comprehensive income
			Favourable change	Unfavourable change	Favourable change	Unfavourable change
	Multipliers and discounts	±1	$-	$-	$ 527	($ 527)

• ’

• (5) Details of the impact of the Covid 19 pandemic to the Company s operations in 2022

• With the gradual recovery of global business activities in 2022, the number of customer orders also gradually increased. As of December 31, 2022, the Covid-19 pandemic had no significant impact on the Group’s going concern, impairment of assets and financing risks under the Group’s assessment. The Group will continue to track the development of the pandemic so that the Group can timely adjust the operational strategies in response.

13. Supplementary Disclosures

(1) Significant transactions information

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

• B. Provision of endorsements and guarantees to others: None.

• C. Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures): Please refer to table 2.

• D. Acquisition or sale of the same security with the accumulated cost exceeding $300 million or 20% of the Company’s paid-in capital: None.

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

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

• G. Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more: Please refer to table 3.

• H. Receivables from related parties reaching $100 million or 20% of paid-in capital or more: Please refer to table 4.

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

• J. Significant inter-company transactions during the reporting periods: Please refer to table 5.

• (2) Information on investees

Names, locations and other information of investee companies (not including investees in Mainland China) ： Please refer to table 6.

(3) Information on investments in Mainland China

• A. Basic information: Please refer to table 7.

• B. Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland Area: Please refer to table 8.

(4) Major shareholders information

Major shareholders information: Please refer to table 9.

14. Segment Information

• (1) General information

The Company and its subsidiaries operate business only in a single industry, which allocate resources and assess performance of the Group as a whole, have identified that the Group has only one reportable operating segment. The accounting policies of the operating segments are in agreement with the significant accounting policies summarised in Note 4. The operating segments are measured using the profit (loss) before tax from continuing operations.

(2) Measurement of segment information

Interest income and expense are not allocated to operating segments, as this type of activity is driven by the Group’s central treasury function, which manages the cash position of the group.

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

The segment information provided to the chief operating decision-maker for the reportable segments is the financial statements prepared in accordance with the IFRSs.

(4) Reconciliation for segment income (loss)

Sales between segments are carried out at arm’s length. The revenue from external customers reported to the chief operating decision-maker is measured in a manner consistent with that in the statement of comprehensive income.

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(5) Information on products and services

Revenue from external customers is mainly from sales of digital office equipment: Composition of income balance details is as follows:

		Yearended	December	31
		2022		2021
Sales revenue	$	2,799,043	$	2,755,689
Service revenue		21,705		33,938
Others		11,692		38,489
Total	$	2,832,440	$	2,828,116

(6) Geographical information

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

Taiwan Germany USA China Brazil Japan Others Total	Non-current Revenue assets 25,854 $ 381,439 $ 669,639 1,306 468,329 37 1,136,387 347,789 77,272 63 32,016 - 422,943 - 2,832,440 $ 730,634 $ YearendedDecember31,2022	Year ended December 31, 2021	Year ended December 31, 2021
	Revenue 25,854 $ 669,639 468,329 1,136,387 77,272 32,016 422,943 2,832,440 $	Revenue 59,284 $ 235,449 357,953 1,802,532 53,947 31,552 287,399 2,828,116 $	Non-current assets
			391,380 $ 1,170 - 370,371 80 - -
			763,001 $

(7) Major customer information

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

ollows:
CN152 CN224 USV01 CN213 CN189	Revenue Segment 287,320 $ Group CN152 268,793 Group CN224 244,356 Group USV01 233,258 Group CN213 - Group CN189 Year ended December31,2022	Year ended December31,2021
	Revenue 287,320 $ 268,793 244,356 233,258 -	Revenue 312,499 $ 20,709 192,108 741,558 226,101	Segment
			Group Group Group Group Group

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AVISION INC. And Subsidiaries

Loans to others

Year ended December 31, 2022

Year ended December 31, 2022
Maximum outstanding balance during the year ended December 31, 2022 Balance at December 31,2022 Actual amount drawn down No. (Note 1) Creditor Borrower General ledger account Is a related party Table 1 Interest rate Nature of loan (Note 2) Amount of transactions with the borrower Reason for short-term financing Allowance for doubtful accounts	Collateral	Expressed in thousands of NTD (Except as otherwise indicated) Limit on loans granted to a single party (Note 3) Celling on total loans granted (Note 3) Footnote
	Item Value
1 AVISION INC. Avision Europe GMBH Other receivables - related parties Yes 4,938 $ - $ - $ 2.867% 1 187,896 $ - - $ 0 AVISION INC. Avision Brasil Ltda. Other receivables - related parties Yes 445 - - 2.867% 1 3,546 - -	None - $ None -	598,577 $ 9,147	116,930 $ 116,930

Note 1: The Company is ‘0’, and the subsidiaries are numbered in order starting from ‘1’.

Note 2: Fill in the nature of the loan as follows:

A. Fill in 1 for business transactions.

B. Fill in 2 for short-term financing.

Note3: For the companies having business relationship with the Company, ceiling on total loans granted is 10% of the Company’s net assets; financial limit on loans granted to a single party is the higher value of business transactions amount during current year on the year of financing. For companies having short-term loans, celling on total loans is 20% of the Company’s net assets, and celling on loans to a single party with short-term financing is 10% of the Company’s net assets.

Table 1, page 1

AVISION INC. And Subsidiaries

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

Year ended December 31, 2022

Table 2

Expressed in thousands of NTD (Except as otherwise indicated)

Securities held by	Marketable securities	Relationship with the securities issuer	General ledger account		As of December 31,2022	As of December 31,2022		Footnote
				Number of shares	Book value(Note)	Ownership (%)	Fair value
AVISION INC. AVISION INC. AVISION INC. AVISION INC. AVISION INC. AVISION INC. Quantum Investment Co.,Ltd. Quantum Investment Co.,Ltd. Sunglow International Inc. Avision (Suzhou) Co., Ltd.	Stocks of OTO PHOTONICS INC. Stocks of AETAS Technology Inc. Stocks of PROTECTLIFE INTERNATIONAL BIOMEDICAL INC. Stcoks of WIN CO E-TECHNOLOGY CORP. JimTec Group Holding Inc. Capsovision Inc. SOLIDLITE CORPORATION AVISION INC. Henan Centrix Technology Co.,Ltd. Yichun Yilian Print Tech Co., Ltd.	None None None None None None None The parent company None None	Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income	1,046,243 shares of ordinary shares. 250,000 shares of ordinary shares. 323,400 shares of ordinary shares. 390,950 shares of ordinary shares. 50,000 shares of ordinary shares. 1,269,566 shares of preference shares. 1,256,000 shares of ordinary shares. 195,879 shares of ordinary shares. Cash of USD 281,320 Cash of CNY 30,000,000	4,662 $ - 699 5,092 4,270 6,108 7,997 2,184 - 68,378	3.13 0.56 2.72 19.35 1.00 1.10 5.72 0.09 15.00 9.54	4,662 $ - 699 5,092 4,270 6,108 7,997 2,184 - 68,378

Note: Fill in the amount after adjusted at fair value for the marketable securities measured at fair value.

Table 2, page 1

AVISION INC. And Subsidiaries

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

Year ended December 31, 2022

Table 3

Expressed in thousands of NTD (Except as otherwise indicated)

Purchaser/seller	Counterparty	Relationship with the counterparty		Transaction	Transaction		Differences in transaction terms compared to third party transactions	Differences in transaction terms compared to third party transactions	Notes/accounts receivable(payable)	Notes/accounts receivable(payable)	Footnote
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unit price	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
AVISION INC. AVISION INC. Avision (Suzhou) Co., Ltd.	Avision (Suzhou) Co., Ltd. Avision Europe GMbH Avision Digital Office Equipment (Shanghai) Trading Co., Ltd.	The company's subsidiary The company's subsidiary Affiliate	Purchases Sales Sales	541,592 $ 610,616) ( 291,280) (	54 36 13) (	45 days after monthly billings 90 days after monthly billings 90 days after monthly billings	Not applicable Not applicable Not applicable	Not applicable Not applicable Not applicable	896,674) ($ 339,595 43,373	90) ( 44 6

Table 3, page 1

AVISION INC. And Subsidiaries

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

Year ended December 31, 2022

Table 4 Creditor	Counterparty	Relationship with the counterparty	Balance as at December 31, 2022	Turnover rate	Overdue receivables	Overdue receivables	Amount collected subsequent to the balance sheet date	Allowance for doubtful accounts Expressed in thousands of NTD (Except as otherwise indicated)
					Amount	Action taken
Avision (Suzhou) Co., Ltd. AVISION INC.	AVISION INC. Avision Europe GMbH	The ultimate parent company The company's subsidiary	896,674 $ 339,595	0.65 2.86	- $ -	Not applicable Not applicable	261,391 $ 110,188	- $ -

Note: The Group's capital is used in an overall coordinated plan, and the net inter-company accounts receivable and accounts payable will be reserved first, and then remaining funds are remitted according to each company's capital requirement plan.

Table 4, page 1

Table 5

Expressed in thousands of NTD

AVISION INC. And Subsidiaries

Significant inter-company transactions during the reporting periods

Year ended December 31, 2022

(Except as otherwise indicated)

Transaction

						Transaction
Number(Note 1)	Companyname	Counterparty	Relationship (Note 2)	General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets(Note3)
0 0 0 0 0 0 0 0 0 1 1	AVISION INC. AVISION INC. AVISION INC. AVISION INC. AVISION INC. AVISION INC. AVISION INC. AVISION INC. AVISION INC. Avision (Suzhou) Co., Ltd. Avision (Suzhou) Co., Ltd.	Avision (Suzhou) Co., Ltd. Avision (Suzhou) Co., Ltd. Avision(Suzhou) Co., Ltd. Avision Digital Office Equipment (Shanghai) Trading Co., Ltd. Avision Labs, Inc. Avision Labs, Inc. Avision Labs, Inc. Avision Europe GMbH Avision Europe GMbH Avision Digital Office Equipment (Shanghai) Trading Co., Ltd. Avision Digital Office Equipment (Shanghai) Trading Co., Ltd.	1 1 1 1 1 1 1 1 1 3 3	Purchases Accounts payable Sales revenue Sales revenue Other expenses Sales Accounts payable Sales Accounts receivable Sales Accounts receivable	541,592 $ 896,674 594,098 14,489 29,610 10,983 11,180 610,616 339,595 291,280 43,373	Based on the price lists in force and terms Payment terms for 45 days after monthly billings Based on the price lists in force and terms Based on the price lists in force and terms Based on the price lists in force and terms Based on the price lists in force and terms Based on the price lists in force and terms Based on the price lists in force and terms Collection term for 90 days after the transation Based on the price lists in force and terms Payment terms for 60 days after monthly billings	0.19 0.30 0.21 0.01 0.01 - - 0.22 0.12 0.10 0.01

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

(1)Parent company is ‘0’.

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

Note 2: Relationship between transaction company and counterparty is classified into the following three categories; fill in the number of category each case belongs to: for transactions between two subsidiaries, if one of the subsidiaries has disclosed the transaction, then the other is not required to disclose the transaction:

(1)Parent company to subsidiary.

(2)Subsidiary to parent company.

(3)Subsidiary to subsidiary.

Note 3: Regarding percentage of transaction amount to consolidated total operating revenues or total assets, it is computed based on period-end balance of transaction to consolidated total assets for balance sheet accounts and based on accumulated transaction amount for the period to consolidated total operating revenues for income statement accounts.

Note 4: Disclosing only the amount exceeded NT$10 million of transactions, and then the corresponding related party transactions are not disclosed separately.

Table 5, page 1

AVISION INC. And Subsidiaries

Information on investees (not including investees in Mainland China)

Year ended December 31, 2022 Table 6

Table 6 Investor	Investee	Location	Main business activities	Initial investment amount		Shares held as at December 31,2022			Net profit (loss) of the investee for the year ended December 31, 2022	Expressed in thousands of NTD (Except as otherwise indicated) Investment income(loss) recognised by the Company for the year ended December 31, 2022 Note
				Balance as at December 31, 2022	Balance as at December 31, 2021	Number of shares Ownership (%)		Book value
AVISION INC. AVISION INC. AVISION INC. AVISION INC. Avision International Inc. Quantum Investment Co., Ltd. Avision Development Inc. Sunglow International Inc.	Avision International Inc. Avision Development Inc. Avision Brasil Ltda. Quantum Investment Co.,Ltd. Fortune Investments Ltd. Avision Europe GmbH Sunglow International Inc. Avision Labs, Inc.	Samoa Samoa Brazil Taiwan Samoa Germany Samoa United States	Investment Investment Maintenance of scanners and multifunction printers Investment Investment Maintenance service of scanners Investment Sales and maintenance service of scanners	1,067,810 $ 287,794 49,822 1,000 1,098,614 2,379 287,794 48,694	1,067,810 $ 287,794 49,822 1,000 1,098,614 2,379 287,794 48,694	38,546,389 8,390,475 - 100,000 39,498,705 - 8,390,475 800,000	100.00 100.00 99.00 100.00 100.00 100.00 100.00 96.39	1,042,792 $ 15,920 11,033 34,303 1,354,920 40,098 17,460 17,448	9,230) ($ 9,294 1,891 26,688 9,230) ( 27,187 9,294 9,642	9,230) ($ 9,294 1,872 26,688 9,230) ( 27,187 9,294 9,294	Subsidiary Subsidiary Subsidiary Subsidiary Second-tier subsidiary Investee companies of the Company’s subsidiary Second-tier subsidiary Investee companies of the Company’s second-tier subsidiary

Table 6, page 1

Table 7

AVISION INC. And Subsidiaries

Information on investments in Mainland China Year ended December 31, 2022

Expressed in thousands of NTD (Except as otherwise indicated)

Investee in Mainland China	Main business activities	Paid-in capital	Investment method(Note 1)	Accumulated amount of remittance from Taiwan to Mainland China as of January 1,2022	Amount remitted from Taiwan to Mainland China/ Amount remitted back to Taiwan for the year ended December 31,2022	Amount remitted from Taiwan to Mainland China/ Amount remitted back to Taiwan for the year ended December 31,2022	Accumulated amount of remittance from Taiwan to Mainland China as of December 31,2022	Net income of investee as of December 31, 2022	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the year ended December 31,2022	Book value of investments in Mainland China as of December 31,2022	Accumulated amount of investment income remitted back to Taiwan as of December 31, 2022	Footnote
					Remitted to Mainland China	Remitted back to Taiwan
Avision (Suzhou) Co., Ltd. Avision Digital Office Equipment (Shanghai) Trading Co., Ltd. Henan Centrix Technology Co., Ltd. Yichun Avision Co., Ltd. Suzhou Hongxin Microelectronics Technology Co., Ltd. Companyname	Scanners and multifunction printers International Trade Discs for laser reading system and international trade Scanners and multifunction printers Research and development and sales of wafers Accumulated amount of remittance from Taiwan to Mainland China as of December 31,2022(Note 3)	1,352,791 $ 6,943 63,727 15,608 69,988 Investment amount approved by the Investment Commission of the Ministry of Economic Affairs (MOEA) (Note 3)	2 2 2 3 3 Ceiling on investments in Mainland China imposed by the Investment Commission of MOEA	1,352,791 $ 6,943 9,559 - -	- $ - - - -	- $ - - - -	1,352,791 $ 6,943 9,559 - -	30,905) ($ 19,875 - 168) ( 21,735) (	100 100 15 100 79	30,905) ($ 19,875 - 168) ( 17,170) (	1,229,418 $ 141,552 - 2,183 47,038	205,688 $ 54,950 - - -	Note 2 Note 2 Note 4 Note 4
AVISION INC.	$ 1,240,878	$ 1,296,195	$ 701,580

Note 1: Investment methods are classified into the following three categories; fill in the number of category each case belongs to:

(1) Directly invest in a company in Mainland China.

(2) Through investing in an existing company in the third area, Avision International Inc.and Fortune Investments Ltd., which then invested in the Avision (Suzhou) Co., Ltd. and Avision Digital Office Equipment (Shanghai) Trading Co., Ltd. in Mainland China. Through investing in an existing company in the third area, Avision Development Inc.and Sunglow International Inc., which then invested in the Henan Centrix Technology Co.,Ltd. in Mainland China.

(3) Others

Note 2: Investment income (loss) recognised by the Company was based on the financial statements of the investee that were audited by R.O.C. parent company’s independent accountants.

Note 3: At the end of this period, the investment amount transmitted from Taiwan to mainland China was US$41,634 thousand counted with original currency. The investment amount permitted by the Investment Commission of Ministry of Economic Affairs (MOEA) was US$43,490 thousand counted with original currency, of which US$1,135 thousand was capital increase through capitalisation of earnings, and did not include in the limit of the Investment Commission of Ministry of Economic Affairs (MOEA). Note 4: It was pertained to the investment in the investee in Mainland China through Avision (Suzhou) Co., Ltd. There was no amount remitted to Mainland China during the year.

Table 7, page 1

AVISION INC. And Subsidiaries

Significant transactions conducted with investees in Mainland China directly or indirectly through other companies in the third areas

Year ended December 31, 2022

Table 8

Expressed in thousands of NTD

(Except as otherwise indicated)

Investee in Mainland China	Sale(purchase)	Sale(purchase)	Propertytransaction	Propertytransaction	Accounts receivable(payable)	Accounts receivable(payable)	Provision of endorsements/guarantees or collaterals	Provision of endorsements/guarantees or collaterals		Financing	Financing		Others
	Amount	%	Amount	%	Balance at December 31, 2022	%	Balance at December 31, 2022	Purpose	~~Maximum~~ balance during the year ended December 31,2022	Balance at December 31,2022	Interest rate	Interest during the year ended December 31, 2022
Avision (Suzhou) Co., Ltd. Avision (Suzhou) Co., Ltd. Avision Digital Office Equipment (Shanghai) Trading Co., Ltd.	($ 1,135,691) 594,098 14,489	75 27 1	$ - - -	- - -	($ 953,584) 56,910 40	91 7 -	$ - - -	- - -	$ - - -	$ - - -	- - -	$ - - -	None None None

Table 8, page 1

AVISION INC. And Subsidiaries Major shareholders information December 31, 2022

Table 9

Name of major shareholders	Shares	Shares
	Name of shares held	Ownership (%)
LUO,SIOU-CHUN SHENG,SHAO-LAN “Avision Inc. trust, hope and love” fund account of the charitable trust in Bank SinoPac TAIWAN MASK CORPORATION	21,370,178 14,117,300 10,325,886 10,000,000	11.05 7.00 5.34 5.17

Table 9, page 1