AWEA — Audit Report / Information 2023

Nov 13, 2023

Stock Code: 1530

AWEA Mechantronic Co., Ltd. and its Subsidiaries

Consolidated Financial Statements and Independent Auditors’ Report

For the Years Ended December 31, 2023 and 2022

Address: No. 629, Sec. Shuichetou, Guanpu Rd., Xinpu Township, Hsinchu County Tel: (03)-5885191

Table of Contents

Items Chapter I Declaration of Consolidated Financial Statements of Associates ....................................................................... Chapter II Independent Auditors’ Report ........................................ Chapter III Consolidated Balance Sheets ......................................... Chapter IV Consolidated Statements of Comprehensive Income ...... Chapter V Consolidated Statement of Changes in Equity ................ Chapter VI Consolidated Statements of Cash Flows ......................... Chapter VII Notes to Consolidated Financial Statements I. History and Organization ....................................... II. Approval Date and Procedures of the Financial Statements .............................................................. III. Application of Newly Issued and Amended Standards and Interpretations ................................. IV. Summary of Significant Accounting Polices ......... V. Significant Accounting Judgment, Estimates, and Assumptions and the Main Sources of Assumption Uncertainty ........................................ VI. Summary of Significant Accounting Titles ............ VII. Related Party Transactions ..................................... VIII. Pledged Assets ....................................................... IX. Significant Contingent Liabilities and Unrecognized Contract Commitments ................... X. Significant Disaster Loss ....................................... XI. Significant Events after the Balance Sheet Date.... XII. Others ..................................................................... XIII. Additional Disclosures ........................................... (I) Significant Transactions Information .......... (II) Information on investees ............................. (III) Information on Investments in Mainland China ........................................................... (IV) Information on Major Shareholders ............ XIV. Segment Information ............................................

Page

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REPRESENTATION LETTER

The entities that are required to be included in the combined financial statements of AWEA Mechantronic Co., Ltd. as of and for the year ended December 31, 2023, under the Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises are the same as those included in the consolidated financial statements prepared in conformity with the International Financial Reporting Standard 10, “Consolidated Financial Statements”. In addition, the information required to be disclosed in the combined financial statements is included in the consolidated financial statements. Consequently, AWEA Mechantronic Co., Ltd. and Subsidiaries do not prepare a separate set of combined financial statements.

Very truly yours,

AWEA Mechantronic Co., Ltd. Chairman: De-Hua Yang March 5, 2024

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EnWise CPAs & Co. 9F-1, No. 130, Taiyuan North Road, Taichung City TEL:(04)2296-6234 Fax:(04)2296-0607/2297-6918

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Independent Auditors’ Report

To AWEA Mechantronic Co., Ltd.:

Audit Opinion

We have audited the accompanying consolidated balance sheets of AWEA Mechantronic Co., Ltd. and its Subsidiaries as at December 31, 2023 and 2022, and the related consolidated statements of comprehensive income, of changes in equity and of cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of AWEA Mechantronic Co., Ltd. and its subsidiaries as of December 31, 2023 and 2022 and for the years then ended, and its consolidated financial performance and its consolidated cash flows for the years then ended in conformity with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) endorsed and issued into effect by the Financial Supervisory Commission (FSC) of the Republic of China, based on our audit results and the audit reports of other certified public accountants (CPAs).

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and auditing standards generally accepted in the Republic of China. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Company and its subsidiaries in accordance with the Norm of Professional Ethics for Certified Public Accountant of Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We are convinced that we have acquired enough and appropriate audit evidence to serve as the basis of audit opinion.

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EnWise CPAs & Co. 9F-1, No. 130, Taiyuan North Road, Taichung City TEL:(04)2296-6234 Fax:(04)2296-0607/2297-6918

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Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements for the year ended December 31, 2023 of AWEA Mechantronic Co., Ltd. and its subsidiaries. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Key audit matters for the consolidated financial statements for the year ended December 31, 2023 of AWEA Mechantronic Co., Ltd. and its subsidiaries are stated as follows:

Revenue recognition

The main source of revenue for AWEA Mechantronic Co., Ltd. and its subsidiaries is the sales of machining centers. In 2023, the recognized revenue was NT$2,241,199 thousand, which accounted for about 95% of the total operating revenue. Since the sales locations include Taiwan, Mainland China, Italy and the United States, the sales terms vary by customers, the risks of ownership and the time of compensation transfer shall be determined in accordance with the terms of the customer's orders or contracts, and the time and amount of revenue recognition can have a significant impact on the financial statements. Therefore, we have identified revenue recognition as one of the key audit matters.

For the accounting policies related to revenue recognition, please refer to Note IV to the consolidated financial statements.

We evaluated the reasonableness of the sales revenue recognition, performed the cut-off point test, and performed internal control tests to understand the design and implementation of the sales revenue recognition process and the related control system of AWEA Mechantronic Co., Ltd. and its subsidiaries. In addition, we conducted related control tests on the sales and collection cycles, sampled and checked the sales contracts to confirm the correctness of the information in the accounting system, performed reconciliations between the general ledger system and the sales system, and assessed whether the time of revenue recognition was in accordance with the relevant reporting regulations.

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EnWise CPAs & Co. 9F-1, No. 130, Taiyuan North Road, Taichung City TEL:(04)2296-6234 Fax:(04)2296-0607/2297-6918

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Evaluation of inventories

AWEA Mechantronic Co., Ltd. and its subsidiaries mainly engage in the design, manufacture and sales of special machines, automation equipment and computer-controlled tool machines. As of December 31, 2023, the total inventories, allowance for market value decline and loss on obsolete and slow-moving inventories were NT$1,950,844 thousand and NT$502,070 thousand, respectively. Inventories of AWEA Mechantronic Co., Ltd. and its subsidiaries are measured at cost and net realizable value. Allowance for market value decline and loss on obsolete and slow-moving inventories are allocated for inventories aged over a certain period of time or individually identified as obsolete. Due to the intense competition in the spare parts market and the varying speeds of obsolescence of different products, the risks of loss on decline in the market value or obsolete inventories are relatively high. The net realizable values used for obsolete inventories and their evaluation usually involve subjective judgment and are therefore highly uncertain. Considering the significant impact of inventories and their allowance for market value decline and loss on obsolete and slow-moving inventories on financial statements, we have identified allowance for market value decline and loss on obsolete and slow-moving inventories as one of the key audit matters.

For the accounting policies related to inventories, please refer to Note IV to the consolidated financial statements; for significant accounting estimates and assumptions used in the evaluation of inventories, please refer to Note V to the consolidated financial statements.

We understood, evaluated, and tested the design and implementation of the internal control system related to inventory management, obtained the evaluation data on the lower of cost or net realizable value of inventories compiled by management authority, sampled and estimated the selling price information to the most recent sales records, and assessed the basis of management authority’s estimate of net realizable value and its reasonableness; obtained an inventory aging statement, and assessed the appropriateness of the policy on provision for allowance for market value decline and loss on obsolete and slow-moving inventories.

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EnWise CPAs & Co. 9F-1, No. 130, Taiyuan North Road, Taichung City TEL:(04)2296-6234 Fax:(04)2296-0607/2297-6918

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Other Matters

In the above consolidated financial statements, the financial statements of YAMA SEIKI USA, INC. and Huahan Leasing Co., Ltd., which are investments accounted for using equity method, were not audited by us, but were audited by other CPAs entrusted by the Company. For the years ended December 31, 2023 and 2022, the balances of investments accounted for using equity method were NT$116,713 thousand and NT$109,850 thousand, respectively, which both accounted for 2% of the Company's total assets. For the years ended December 31, 2023 and 2022, the share of profit or loss of associates and joint ventures accounted for using equity method were NT$7,178 thousand and NT$7,782 thousand, respectively, which accounted for 3% and 2% of the Company's net profit before tax, respectively.

The Company has prepared the parent company only financial statements for 2023 and 2022, and we have issued an audit report containing our unqualified opinion plus the audit report issued by other CPAs as in the section of “Other matters” for reference.

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 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 AWEA Mechantronic Co., Ltd.’s and its subsidiaries’ 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 AWEA Mechantronic Co., Ltd. and its subsidiaries or to cease operations, or has no realistic alternative but to do so.

Those charged with governance (including members of the Audit Committee) are

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EnWise CPAs & Co. 9F-1, No. 130, Taiyuan North Road, Taichung City TEL:(04)2296-6234 Fax:(04)2296-0607/2297-6918

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responsible for overseeing the AWEA Mechantronic Co., Ltd.’s and its subsidiaries’ 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 auditing standards in 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 auditing standards generally accepted in the Republic of China, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• I. Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. Fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Therefore, the risk of not detecting a material misstatement resulting from fraud is higher than the one resulting from error.

• II. Obtain an understanding of internal control relevant to the audit to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the AWEA Mechantronic Co., Ltd.’s and its subsidiaries’ internal control.

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

• IV. Conclude on the appropriateness of management’s use of the going concern basis of

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EnWise CPAs & Co. 9F-1, No. 130, Taiyuan North Road, Taichung City TEL:(04)2296-6234 Fax:(04)2296-0607/2297-6918

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accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on AWEA Mechantronic Co., Ltd.’s and its subsidiaries’ 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 consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause AWEA Mechantronic Co., Ltd. and its subsidiaries to cease to continue as a going concern.

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

• VI. 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 audit of such the Group. We remain solely responsible for our audit opinion on the consolidated financial statements.

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.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of AWEA Mechantronic Co., Ltd. and its subsidiaries for the year ended December 31, 2023 and are therefore the key audit matters. We describe these matters in our auditors’ report unless law

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EnWise CPAs & Co. 9F-1, No. 130, Taiyuan North Road, Taichung City TEL:(04)2296-6234 Fax:(04)2296-0607/2297-6918

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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.

EnWise CPAs & Co.

CPA Guei-Duan Chen

CPA Chang-Yun Yi

Approval number of the Securities and Approval number of the Securities and Futures Management Committee, Futures Management Committee, Ministry of Finance Ministry of Finance (1990) Tai-Cai-Zheng (I) No. 27495 (2003) Tai-Cai-Zheng (VI) No. 121986

March 5, 2024

Notice to Readers

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

For the convenience of readers, the independent auditors' report and the accompanying consolidated financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese- language independent auditors' report and consolidated financial statements shall prevail .

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AWEA Mechantronic Co., Ltd. and its Subsidiaries

Consolidated Balance Sheets

December 31, 2023 and 2022

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Unit: NT$ thousand
December 31, 2023 December 31, 2022
Code Items Notes Amount % Amount %
Current assets
1100 Cash and cash equivalents IV and VI $ 866,173 15 $ 1,132,171 17
1110 Financial assets at FVTPL - current IV and VI 536,929 9 377,002 5
1150 Notes receivable, net IV and VI 157,100 3 381,640 6
1160 Notes receivable due from related parties, net IV and VII 858 - 4,274 -
1170 Accounts receivable, net IV and VI 350,642 6 457,612 7
1180 Account receivables due from related parties, IV and VII 43,741 1 33,566 -
net
1200 Other receivables 11,698 - 10,766 -
1210 Other receivables - related parties VII - - - -
1220 Current tax assets IV 26 - 143 -
130x Inventories IV and VI 1,448,774 24 1,607,007 24
1410 Prepayments VII 42,490 1 57,859 1
1470 Other current assets VIII 344,423 6 542,186 8
11xx Total current assets 3,802,854 65 4,604,226 68
Non-current assets
1517 Financial assets at FVOCI - non-current IV and VI 1,991 - 10,458 -
Financial assets measured at amortized cost -
1535 IV, VI and VIII 10,137 - - -
non-current
1550 Investments accounted for using equity method IV and VI 116,713 2 109,850 2
1600 Property, plant and equipment IV, VI, VII and VIII 1,741,772 29 1,797,473 26
1755 Right-of-use assets IV, VI and VIII 114,477 2 132,035 2
1780 Intangible assets IV and VI 12,656 - 10,368 -
1840 Deferred tax assets IV and VI 140,108 2 101,283 1
1915 Prepayments for equipment 3,200 - 300 -
1920 Guarantee deposits paid 3,965 - 7,146 -
1931 Long-term notes receivable, net IV 7,413 - 12,115 1
1937 Overdue receivables IV and VI - - - -
1990 Other non-current assets - others 6,605 - 6,544 -
15xx Total non-current assets 2,159,037 35 2,187,572 32
1xxx Total assets $ 5,961,891 100 $ 6,791,798 100
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Please refer to the accompanying notes to the consolidated financial statements.

Chairman: De-Hua Yang Managerial officer: Shang-Ru Yang Accounting Supervisor: Hong-Bin Syu

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AWEA Mechantronic Co., Ltd. and its Subsidiaries

Consolidated Balance Sheets

December 31, 2023 and 2022

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Unit: NT$ thousand
December 31, 2023 December 31, 2022
Code Items Notes Amount % Amount %
Current liabilities
2100 Short-term borrowings VI and VIII $ 1,576,852 26 $ 1,954,949 29
2110 Short-term notes and bills payable VI 79,987 1 289,641 4
2130 Contract liabilities IV and VI 172,215 3 225,013 3
2150 Notes payable 262,181 4 393,849 6
2160 Notes payable - related parties VII 566 - 514 -
2170 Accounts payable 165,270 3 201,312 3
2180 Accounts payable - related parties VII 350 - 799 -
2200 Other payables VI 112,178 2 128,889 2
2220 Other payables - related parties VII 1,339 - 2,007 -
2230 Current tax liabilities IV 52,116 1 64,623 1
2250 Current provisions IV and VI 12,935 - 12,445 -
2280 Current lease liabilities IV, VI and VII 638 - 11,420 -
2310 Advance receipts VII 1,066 - 934 -
2399 Other current liabilities - others 1,077 - 2,099 -
21xx Total current liabilities 2,438,770 40 3,288,494 48
Non-current liabilities
2570 Deferred income tax liabilities IV and VI 116,831 2 112,224 2
2580 Non-current lease liabilities IV, VI and VII 280 - 918 -
2630 Long-term deferred revenue 9,533 - 10,793 -
2640 Net defined benefit liability - non-current IV and VI 6,973 - 8,991 -
2645 Guarantee deposits received 1,911 - 2,183 -
25xx Total non-current liabilities 135,528 2 135,109 2
2xxx Total Liabilities 2,574,298 42 3,423,603 50
Equity attributable to owners of the parent
3100 Share capital VI
3110 Common stock 965,942 16 965,942 14
3200 Capital surplus VI
3211 Capital surplus - additional paid-in capital 6,124 - 6,124 -
arising from ordinary share
Capital surplus - Conversion premium of
3213 57,468 1 57,468 1
convertible bonds
3240 Capital surplus - Gains from disposal of 4 - 4 -
assets
3280 Capital surplus - others 31,920 1 31,920 -
3300 Retained earnings VI
3310 Legal reserve 562,966 9 527,176 8
3320 Special reserve 98,077 2 98,077 1
3350 Unappropriated earnings 1,606,748 28 1,595,597 24
3400 Other equity VI
3410 Exchange difference on translation of (32,016) (1) (18,699) -
financial statements of foreign operations
Unrealised gains (losses) on valuation of
3420 financial assets measured at fair value (3,381) - (10,933) -
through other comprehensive income
Total equity attributable to owners of the
31xx 3,293,852 56 3,252,676 48
parent
36xx Non-controlling interests VI 93,741 2 115,519 2
3xxx Total equity 3,387,593 58 3,368,195 50
Total liability and equity $ 5,961,891 100 $ 6,791,798 100
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Please refer to the accompanying notes to the consolidated financial statements.

Chairman: De-Hua Yang Managerial officer: Shang-Ru Yang Accounting Supervisor: Hong-Bin Syu

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AWEA Mechantronic Co., Ltd. and its Subsidiaries

Consolidated Statements of Comprehensive Income

For the Years Ended December 31, 2023 and 2022

Unit: NT$ thousand, except earnings per share

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2023 2022
Code Items Notes Amount % Amount %
4000 Operating revenue VI and VII $ 2,361,917 100 $ 3,100,517 100
5000 Operating costs VI and VII (2,002,794) (85) (2,432,617) (78)
5900 Gross profit 359,123 15 667,900 22
5920 Realized (Unealized) gain from sale (210) - (4,900) -
5950 Gross profit, net 358,913 15 663,000 22
Operating expenses
6100 Selling and marketing expenses (149,424) (6) (188,205) (6)
6200 General and administrative expenses (129,974) (6) (128,520) (4)
6300 Research and development expenses (53,729) (2) (61,671) (2)
6450 Expected credit impairment gains (losses) 7,214 - 13,621 -
6000 Total operating expenses (325,913) (14) (364,775) (12)
6900 Operating profit 33,000 1 298,225 10
Non-operating income and expenses
7100 Interest income 30,129 1 15,972 1
7010 Other income VI 65,466 4 46,011 2
7020 Other gains and losses IV and VI 132,086 6 117,800 4
7050 Finance costs VI (32,760) (1) (26,002) (1)
7060 Share of profit or loss of associates and joint ventures 7,178 - 7,782 -
accounted for using equity method
7000 Total non-operating income and expenses 202,099 10 161,563 5
7900 Net profit before tax 235,099 11 459,788 15
7950 Income tax income (expense) IV and VI (44,793) (2) (110,501) (4)
8200 Profit for the year 190,306 9 349,287 11
Other comprehensive income
8310 Items that will not be reclassified subsequently to profit or
loss
8311 Remeasurement of defined benefit plan (351) - 3,296 -
Unrealized gains (losses) from investment in equity
8316 instrument measured at fair value through other (1,486) - (13,848) -
comprehensive income
8349 Income taxes related to the items not reclassified 70 - (659) -
Items that may be reclassified subsequently to profit or
8360
loss
8361 Exchange difference on translation of financial (18,238) (2) 23,155 -
statements of foreign operations
8399 Income tax related to items that may be reclassified 3,648 (1) (4,631) -
8300 Other comprehensive (loss) income for the year (16,357) (3) 7,313 -
8500 Total comprehensive income $ 173,949 6 $ 356,600 11
8600 Net profit (loss) attributable to:
8610 Owners of the parent company (net profit/ loss) $ 210,811 9 $ 354,143 11
8620 Non-controlling interests (net profit/ loss) (20,505) - (4,856) -
$ 190,306 9 $ 349,287 11
8700 Total comprehensive income attributable to:
8710 Owners of the parent company (comprehensive income) $ 195,727 7 $ 360,342 11
8720 Non-controlling interests (comprehensive income) (21,778) - (3,742) -
$ 173,949 7 $ 356,600 11
Earnings per share
9750 Basic earnings per share $ 2.18 $ 3.67
9850 Diluted earnings per share $ 2.17 $ 3.65
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Please refer to the accompanying notes to the consolidated financial statements.

Chairman: De-Hua Yang Managerial officer: Shang-Ru Yang Accounting Supervisor: Hong-Bin Syu

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AWEA Mechantronic Co., Ltd. and its Subsidiaries

Consolidated Statement of Changes in Equity

For the Years Ended December 31, 2023 and 2022

Unit: NT$ thousand

Equity attributable to owners of the parent

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Share capital Retained earnings Other equity items
Exchange Unrealised gains
difference on (losses) on valuation
Total equity
translation of of financial assets
Unappropriated attributable to Non-controlling
Items Common stock Capital surplus Legal reserve Special reserve financial measured at fair value Total equity
earnings owners of the interests
statements of through other
parent
foreign comprehensive
operations income
Balance at January 1, 2022 $ 965,942 $ 124,495 $ 513,898 $ 98,077 $ 1,366,883 $ (36,109) $ 4,040 $ 3,037,226 $ 119,261 $ 3,156,487
Appropriation and distribution of retained
earnings:
Legal reserve - - 13,278 - (13,278) - - - - -
Cash dividends paid - - - - (115,913) - - (115,913) - (115,913)
Cash dividends to shareholders from capital - (28,979) - - - - - (28,979) - (28,979)
surplus
2022 Net profit - - - - 354,143 - - 354,143 (4,856) 349,287
Other comprehensive income for 2022 - - - - 2,637 17,410 (13,848) 6,199 1,114 7,313
Total comprehensive income of 2022 - - - - 356,780 17,410 (13,848) 360,342 (3,742) 356,600
Disposal of investments in equity instruments
at fair value through other comprehensive - - - - 1,125 - (1,125) - - -
income
Balance at December 31, 2022 965,942 95,516 527,176 98,077 1,595,597 (18,699) (10,933) 3,252,676 115,519 3,368,195
Appropriation and distribution of retained
earnings:
Legal reserve - - 35,790 - (35,790) - - - - -
Cash dividends paid - - - - (154,551) - - (154,551) - (154,551)
surplus Cash dividends to shareholders from capital - - - - - - - - - -
2023 Net profit - - - - 210,811 - - 210,811 (20,505) 190,306
Other comprehensive income for 2023 - - - - (281) (13,317) (1,486) (15,084) (1,273) (16,357)
Total comprehensive income of 2023 - - - - 210,530 (13,317) (1,486) 195,727 (21,778) 173,949
Disposal of investments in equity instruments
at fair value through other comprehensive - - - - (9,038) - 9,038 - - -
income
Balance at December 31, 2023 $ 965,942 $ 95,516 $ 562,966 $ 98,077 $ 1,606,748 $ (32,016) $ (3,381) $ 3,293,852 $ 93,741 $ 3,387,593
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Please refer to the accompanying notes to the consolidated financial statements.

Chairman: De-Hua Yang Managerial officer: Shang-Ru Yang Accounting Supervisor: Hong-Bin Syu

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AWEA Mechantronic Co., Ltd. and its Subsidiaries

Consolidated Statements of Cash Flows

For the Years Ended December 31, 2023 and 2022

Unit: NT$ thousand

Cash flows from operating activities Net profit before tax Adjustments Depreciation Amortisation Expected credit impairment (gains) losses Interest expense Interest income Dividend revenue Share of profit or loss of associates and joint ventures accounted for using equity method Gains on disposal and discard of property, plant and equipment Unrealized (Realized) gain from sale Other income Lease modification benefit Gains on disposals of investments (Gains) losses from evaluation of financial assets Changes in operating assets and liabilities Notes receivable Notes receivable - related parties Account receivables Account receivables - related parties Other receivables Other receivables - related parties Inventories Prepayments Other current assets Overdue receivables Long-term notes receivable Contract liabilities Notes payable Notes payable - related parties Accounts payable Accounts payable - related parties Other payables Other payables - related parties Provisions Advance receipts Other current liabilities Net defined benefit liability Cash generated from operations Interest received Income tax paid Net cash generated by operating activities (Continued)	2023 235,099 $ 111,786 2,752 (7,214) 32,760 (30,129) (23,308) (7,178) (61) 210 (1,075) - (2,841) (123,694) 222,165 3,416 107,200 (10,175) (1,665) - 158,233 15,369 407 8,784 5,380 (52,798) (131,668) 52 (36,042) (449) (15,683) (668) 522 132 (1,022) (2,088) 456,509 30,862 (87,932) 399,439	2022 459,788 $ 115,080 2,965 (13,621) 26,002 (15,972) (18,114) (7,782) (211) 4,900 (1,081) (283) (2,095) 11,149 (134,978) (509) 88,299 (19,617) 2,777 174 (57,361) 18,114 (255) (6,784) 19,191 4,062 (124,385) (16,520) (77,204) 208 (9,489) 531 (513) 922 857 (507) 247,738 12,058 (37,909) 221,887

• 13 -

AWEA Mechantronic Co., Ltd. and its Subsidiaries

Consolidated Statements of Cash Flows

For the Years Ended December 31, 2023 and 2022

Unit: NT$ thousand

		Unit: NT$ thousand
(Continued from previous page) Cash flows from investing activities Acquisitions of financial assets at fair value through profit or loss Disposal price of financial assets at fair value through profit or loss Acquisitions of financial assets at fair value through other comprehensive income Disposal price of financial assets at fair value through other comprehensive income Acquisition of financial assets measured at amortized cost Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Acquisitions of intangible assets Decrease (Increase) in prepayments for equipment Decrease in guarantee deposits paid Decrease (Increase) in other non-current assets Dividends received Decrease (Increase) in other financial assets Net cash inflow (outflow) from investing activities Cash flows from financing activities Increase (decrease) in short-term borrowings Increase (Decrease) in short-term notes and bills payable Decrease in long-term borrowings Repayment of principal of lease liabilities Decrease in guarantee deposits received Interest paid Dividends paid Net cash inflow (outflow) from financing activities Effect of changes in foreign exchange rates on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of year Cash and cash equivalents at the end of year	2023 (49,014) 15,622 - 6,981 (10,137) (51,642) 1,779 (5,079) (2,900) 3,181 (61) 23,308 197,356 129,394 (378,097) (209,654) - (11,420) (272) (31,622) (154,551) (785,616) (9,215) (265,998) 1,132,171 866,173 $	2022
		(236,175) 22,536 (11,268) 3,791 - (22,340) 3,740 (1,246) 3,664 5,785 2,094 18,114 (220,429) (431,734) 619,168 29,734 (62,672) (11,410) (1,990) (25,793) (144,890) 402,147 2,219 194,519 937,652 1,132,171 $

Please refer to the accompanying notes to the consolidated financial statements.

Chairman: De-Hua Yang Managerial officer: Shang-Ru Yang Accounting Supervisor: Hong-Bin Syu

• 14 -

AWEA Mechantronic Co., Ltd. and its Subsidiaries

Notes to the Consolidated Financial Statements

For the Years Ended December 31, 2023 and 2022

Unit: NT$ thousand (unless stated otherwise)

I. History and Organization

AWEA Mechantronic Co., Ltd. was established on July 16, 1986. The design, manufacture and sales of special machines, automation equipment and computer-controlled tool machines are its main business.

The shares of AWEA was approved of listing by Document Tai-Zheng-(2000)-Shang-Zi No. 025773 on September 6, 2000, and began to be listed for trading on TWSE Stock Exchange Market since September 11, 2000.

II. Approval Date and Procedures of the Financial Statements

The consolidated financial statements were approved by the board of directors and authorized for issue on March 5, 2024.

III. Application of Newly Issued and Amended Standards and Interpretations

• (I) Initial application of the amendments to the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, “IFRS”) endorsed and issued into effect by the Financial Supervisory Commission (FSC)

Except as stated below, the application of the amendments to the IFRS endorsed and issued into effect by the FSC does not have a significant effect on the Company’s accounting policies:

Amendments to IAS 12 “International Tax Reform - Pillar Two Model Rules”

The amendment introduces an exception to IAS 12 that specifies that the Company shall not recognize deferred income tax assets and liabilities for Pillar Two income taxes and shall not disclose information about such deferred income taxes, but shall disclose that it has applied this exception and shall disclose current income tax expense (income) related to Pillar Two income taxes separately. In addition, if the Pillar Two Act has been enacted or substantively enacted but has not yet come into force, the Company shall disclose its qualitative and quantitative information known or reasonably estimated to

• 15 -

be exposed to the Pillar Two income tax for the users to know the situation. After the issuance of this amendment, the Company shall immediately and retroactively apply this exception and disclose the fact that it has been applied; the other disclosure requirements apply to annual reporting periods after January 1, 2023, and do not apply to interim financial statements with the end date of interim period before December 31, 2023.

• (II) IFRSs issued by the International Accounting Standards Board (IASB) that have been endorsed by the FSC and will come into effect in 2024:

endorsed by the FSC and will come into effect in 2024:
New, Revised or Amended Standards and Interpretations Amendment to IFRS 16 “Lease Liabilities in Sale and Leasebacks” Amendments to IAS 1 “Classification of Liabilities as Current or Non-current” Amendments to IAS 1 “Non-current Liabilities with Covenants” Amendments to IAS 7 and IFRS 7 “Supplier Financing Arrangements”	Effective Date Announced by IASB (Note 1)
	January 1, 2024 (Note 2) January 1, 2024 January 1, 2024 January 1, 2024 (Note 3)

• Note 1: Unless stated otherwise, the above new/revised/amended standards or interpretations are effective for annual reporting periods beginning on their respective effective dates.

• Note 2: A seller-lessee applies the amendments retrospectively to IFRS 16 to sale and leaseback transactions entered into after the date of initial application.

• Note 3: When the amendments apply for the first time, some requirements for disclosure are exempted.

• As of the date the financial statements were authorized, the Company is making continuous assessment and concludes that the amendments of other standards and interpretations will have no significant impact on the financial position and financial performance.

• (III) IFRS issued by the International Accounting Standards Board (IASB) but not yet endorsed and issued into effect by the FSC

• 16 -

Effective Date New, Revised or Amended Standards and Interpretations Announced by IASB (Note 1) Amendments to IFRS 10 and IAS 28 “Sale or Contribution of To be determined by Assets between an Investor and its Associate or Joint IASB Venture” IFRS 17 “Insurance Contracts” January 1, 2023 Amendments to IFRS 17 January 1, 2023 Amendments to IFRS 17 “Initial application of IFRS 17 and January 1, 2023 IFRS 9 - Comparative Information” Amendments to IAS 21 “Lack of Exchangeability” January 1, 2025 (Note 2)

• Note 1: Unless stated otherwise, the above new/revised/amended standards or interpretations are effective for annual reporting periods beginning on their respective effective dates.

• Note 2: This amendment applies for annual reporting periods beginning after January 1, 2025. At the initial application of the amendment, the number of influences is recognized in the retained reserve at the date of initial application. When the Company adopts a non-functional currency as the presentation currency, the effects will be reclassified as the exchange differences arising from the translation of the financial statements of foreign operations under equity on the initial application date.

As of the date the financial statements were authorized, the Company is continuously assessing the possible impact that the application of other standards and interpretations will have on the financial position and financial performance and will disclose the relevant impact when the assessment is completed.

IV. Summary of Significant Accounting Polices

The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. The following accounting policies have been consistently applied to all periods presented in the consolidated financial statements, unless otherwise specified.

• 17 -

(I) Statement of compliance

The consolidated financial statements 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.

(II) Basis of preparation

Except for the following significant items of balance sheet, these consolidated financial statements have been prepared at historical cost:

1. Financial assets measured at fair value through profit or loss;

2. Financial assets measured at fair value through other comprehensive income;

3. The net defined benefit liability is the fair value of pension fund assets less the present value of defined benefit obligations.

(III) Functional currency and presentation currency

Each entity of the Consolidated Company uses the currency of the primary economic environment in which the entity operates as the functional currency. The consolidated financial statements are presented in New Taiwan dollars, the Company’s functional currency. All financial information presented in New Taiwan dollars are in thousands of New Taiwan dollars.

• (IV) Basis of consolidation

The consolidated financial statements include the financial statements of AWEA and the entities it controls (i.e., subsidiaries).

The financial statements of the subsidiaries are included in the consolidated financial statements from the date on which control of the subsidiaries is obtained until the date on which such control ceases. The gains and losses attributable to the non-controlling interest in the subsidiaries are attributed to the non-controlling interest even if the non-controlling interest becomes a deficit balance as a result.

The financial statements of the subsidiaries have been appropriately adjusted so that the accounting policies are consistent with those of AWEA.

Significant transactions among consolidated companies, balances and unrealized gains and expenses have been eliminated when preparing the consolidated financial statements.

• 18 -

Subsidiaries included in the consolidated financial statements:

Name of investor AWEA Mechantronic Co., Ltd. AWEA Mechantronic Co., Ltd. B-Way (Cayman) Co., Ltd. Billion-Way (Cayman)Co., Ltd. Billion-Way (Cayman)Co., Ltd. Yih Chuan Machinery Industry Co., Ltd. AXTRON INT’L INVESTMENT CO., LTD AXTRON INT’L INVESTMENT LIMITED	Name of subsidiaries B-Way (Cayman) Co., Ltd. Yih Chuan Machinery Industry Co., Ltd. Billion-Way (Cayman) Co., Ltd. Shanghai Zhuwai Mechanical and Electrical Co., Ltd. Awea Mechantronic (Suzhou) Ltd. AXTRON INT’L INVESTMENT CO., LTD AXTRON INT’L INVESTMENT LIMITED Yih Chuan Machinery (Jiaxing) Industry Co., Ltd.	Main business activities International investment and international trade Industrial machinery manufacture and trade International investment and international trade Machinery sales, installation and international trade Machinery manufacturing, sales and installation and international trade International investment and international trade International investment and international trade Machinery manufacturing, sales and installation and international trade	Ownership (%)	Ownership (%)
			December 31, 2023 100% 60% 100% 100% 100% 100% 100% 100%	December 31, 2022 100% 60% 100% 100% 100% 100% 100% 100%

• (V) Classification of current and non-current assets and liabilities

• Assets that meet one of the following criteria are classified as current assets. All assets that are not classified as current assets are classified as non-current assets:

  • (1) Assets that are expected to be realized, or are intended to be sold or consumed within the normal business cycle;

  • (2) Assets held mainly for trading purposes;

  • (3) Assets that are expected to be realized within twelve months after the reporting period; or

  • (4) The asset is cash and cash equivalents, excluding restricted assets and those

• 19 -

that are to be exchanged or used to settle liabilities more than twelve months after the reporting period.

1. Liabilities that meet one of the following criteria are classified as current liabilities. All liabilities that are not classified as current liabilities are classified as non-current liabilities:

   • (1) Liabilities that are expected to be settled within the normal business cycle;

   • (2) Liabilities held mainly for trading activities.

   • (3) Liabilities that are expected to be due for settlement within twelve months after the reporting period; or

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

2. (VI) Foreign currency transactions

When preparing the financial statements of each consolidated entity, transactions in currencies other than the entity’s functional currency (foreign currency) are translated to the functional currency based on the exchange rate on the transaction day. Monetary items denominated in foreign currencies at the end of the reporting period are translated into the functional currency based on the exchange rate on that day.

Foreign currency non-monetary items measured at fair value are translated into the functional currency at the exchange rate on that day; however, if the change in fair value is recognized in other comprehensive income, the resulting exchange differences are included in other comprehensive income.

Non-monetary items measured at historical cost that are denominated in foreign currencies are translated at the exchange rates on the transaction date. The exchange differences arising from translation are recognized in profit or loss in the period in which they arise.

For purpose of preparing the consolidated financial statements, the assets and liabilities of foreign operations of the Company shall be translated to NTD by the exchange rate on ending date of the reporting period; the income and expense items shall be translated to NTD at the average exchange rate of the current period, and the resulting exchange

• 20 -

difference shall be recognized as other comprehensive profit or loss and accumulated as the translation difference in the financial statements of foreign operations under equity.

(VII) Cash and cash equivalents

• Cash includes cash on hand and current deposits. Cash equivalents refer to short-term, highly liquid investments that are readily convertible to known amounts of cash and 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 rather than for investment or other purposes are classified as cash equivalents.

(VIII) Financial instruments

Accounts receivable are initially recognized when they are incurred. All other financial assets and liabilities shall be recognized initially when the Company becomes a party to the contractual provisions of the financial instruments. Financial assets (other than accounts receivable that do not contain significant financial components) or financial liabilities not measured at fair value through profit or loss shall be initially measured at fair value plus transaction costs that are directly attributable to the acquisition or issuance. Accounts receivable that do not contain significant financial components shall be initially measured at transaction price.

1. Financial assets At initial recognition, financial assets shall be classified as financial assets at amortized cost, financial assets at fair value through profit or loss and financial assets at fair value through other comprehensive income. The Company reclassifies all affected financial assets from the first day of the next reporting period only when there is a change in the business model for financial assets management.

2. (1) Financial assets measured at amortized cost Financial assets are measured at amortized cost when they meet all of the following criteria and are not designated as at fair value through profit or loss:

   • A. The financial assets are held under the business model with the purpose of collecting contractual cash flows.

   • B. The contract terms of the financial assets generate cash flow on a specific date, and such cash flow is solely for the payment of the principle and the interest on outstanding principle amount.

3. 21 -

Such assets are subsequently measured at amortized cost based on the initially recognized amount plus or minus accumulated amortization calculated using the effective interest method, adjusted for any loss allowance. Interest income, foreign currency exchange gains and losses, and impairment losses are recognized in profit or loss. Gains or losses are recognized in profit or loss at derecognition.

(2) Financial assets at FVTPL

Financial assets not classified as financial assets at amortized cost or at fair value through other comprehensive income are measured at fair value through profit or loss, including derivative financial assets. The Company may irrevocably designate financial assets that qualify as financial assets at amortized cost or at fair value through other comprehensive income as financial assets at fair value through profit or loss at the time of initial recognition in order to eliminate or materially reduce accounting mismatch. Such assets shall be measured at fair value subsequently, and their net gains or losses shall be recognized in profit or loss.

(3)

Financial assets at FVTOCI

At initial recognition, the Company has made an irrevocable election to recognize subsequent changes in the fair value of equity instruments not held for trading in other comprehensive income. The above election is made on an instrument-by-instrument basis.

Investments in debt instruments are subsequently measured at fair value. Interest income, foreign currency exchange gains and losses, and impairment losses calculated using the effective interest method are recognized in profit or loss, and the remaining net gains or losses are recognized in other comprehensive income. Upon derecognition, the cumulative amount in other comprehensive income shall be reclassified to profit or loss.

Investments in equity instruments are subsequently measured at fair value. Dividend income (unless it obviously represents the recovery of a portion of cost of investment) is recognized in profit or loss. The remaining net gains or losses are recognized in other comprehensive income and are not reclassified

• 22 -

to profit or loss.

Dividend income from equity investments is recognized on the date when the Company has the right to receive the dividend (usually the ex-dividend date).

• (4) Impairment of financial assets

The Company recognizes loss allowance for expected credit losses on the financial assets measured at amortized cost (including cash and cash equivalents, financial assets at amortized cost, notes and accounts receivable, other receivables, refundable deposits and other financial assets).

The loss allowance is measured at 12-month expected credit losses for the following financial assets, and at the lifetime expected credit losses of the other financial assets:

• A. The credit risk of debt securities is determined to be low at the reporting date; and

• B. The credit risks of other debt securities and bank deposits (i.e., the risk of default on financial instruments over the expected life) have not increased significantly since the initial recognition.

The loss allowances for accounts receivable and contract assets are measured at the amount of lifetime expected credit losses.

When determining whether the credit risk has increased significantly since the initial recognition, the Company has considered reasonable and provable information (which can be obtained without undue costs or inputs), including qualitative and quantitative information, and analyses based on the Company’s historical experience, credit assessment and forward-looking information.

Lifetime expected credit losses result from all possible default events over the expected life of the financial instruments.

The 12-month expected credit losses are expected credit losses that result from possible default events within 12 months after the reporting date (or for shorter periods, if the expected life of the financial instrument is less than 12 months).

• 23 -

The maximum period for which expected credit losses are measured is the maximum contract period over which the Company is exposed to credit risk. Expected credit losses are weighted estimates of the probability of credit losses over the expected life of the financial instruments. Credit losses are measured at the present value of all cash shortfalls, which is the difference between the cash flows that the Company could receive under the contract and the cash flows that the Company expects to receive. Expected credit losses are discounted at the effective interest rate of the financial asset.

On each reporting date, the Company evaluates whether credit impairment occurs to the financial assets measured at amortized cost and debt securities measured at fair value through other comprehensive income. Credit impairment occurs to a financial asset when one or more events that have an adverse effect on the estimated future cash flows of the financial asset. Evidence proving that credit impairment occurs to a financial asset includes observable information about the following events:

• A. Significant financial difficulty of the borrower or issuer;

• B. Defaults, such as delay or overdue for more than 90 days;

• C. The Company has made concessions to the borrower that the Company would not consider otherwise for economic or contractual reasons related to the borrower’s financial difficulties;

• D. The borrower is very likely to apply for bankruptcy or carry out other financial reorganization; or

• E. The active market for the financial assets has disappeared due to financial difficulties.

The loss allowance for financial assets at amortized cost is deducted from the carrying amount of the assets. The loss allowance for investments in debt instruments at fair value through other comprehensive income are recognized in other comprehensive income (without reducing the carrying amount of the asset), and the provision or reversal amount of loss allowance is recognized in profit or loss.

• 24 -

When the Company does not have a reasonable expectation of recovering all or part of a financial asset, the total carrying amount of the financial asset is reduced directly. The Company analyzes the timing and amount of offset on a case-by-case basis to determine whether there is a reasonable expectation of recovery. The Company expects that the offset amount will not be reversed significantly. However, the offset financial assets are still enforceable in order to comply with the Company’s procedures for recovering overdue amounts.

• (5) Derecognition of financial assets

• A financial assets will be derecognized only when the Company’s contractual rights to the cash flows from that asset are terminated, or when the financial asset is transferred and substantially all the risks and returns of ownership to that asset have been transferred to another entity, or when substantially all the risks and returns of ownership are neither transferred nor retained, and the Company does not retain control over that financial asset.

If the Company enters into a transaction to transfer a financial asset and retains all or substantially all of the risks and returns of ownership to the transferred asset, the financial asset will continue to be recognized on the balance sheet.

(IX) Financial liabilities and equity instruments

1. Classification of liabilities and equity Debt and equity instruments issued by the Company are classified as either financial liabilities or equity in accordance with the substance of the contractual arrangements and the definitions of financial liabilities and equity instruments.

2. Equity instruments

3. Equity instrument refers to any contract that recognizes the remaining interest of the Company after reducing all its liabilities from its assets. Equity instruments issued by the Company are recognized at the proceeds received, net of the cost of direct issue.

4. Financial liabilities

Financial liabilities that are not held for trading and are not designated as at fair value through profit or loss (including notes payable, accounts payable and other

• 25 -

payables) are measured at fair value plus directly attributable transaction costs at initial recognition; subsequently, they are measured at amortized cost using the effective interest rate method, and interest expenses not capitalized in the asset cost are included in non-operating income and expenses.

1. Derecognition of financial liabilities

A financial liability is derecognized by the consolidated company when the contractual obligation is either discharged or canceled or expires.

The difference between the carrying amount of the financial liability derecognized and the total consideration paid and payable (including any non-cash assets transferred or liabilities assumed) is recognized in profit or loss, and included in non-operating income and expenses.

1. Mutual offset of financial assets and liabilities Financial assets and financial liabilities are offset and recognized in the balance sheet on a net basis only when the Consolidated Company has the legal right to do so and has the intention to settle on a net basis or to realize the assets and settle the liabilities simultaneously.

(X) Inventories

Inventories are stated at the lower of cost or net realizable value. Inventories are stated at standard cost at ordinary times, and are adjusted to approximate weighted average cost at the end of the reporting period. Net realizable value is calculated as the estimated selling price less the costs to be incurred until completion and the selling expenses.

(XI) Investments accounted for using equity method

• Investments accounted for using equity method include associates and joint ventures. Associates are companies over which the Company exercises significant influence, but not subsidiaries or joint ventures. Significant influence refers to the power to participate in the investee’s financial and operating policy decisions, but not the power to control or jointly control such policy decisions.

In joint ventures, the Company and another entity engage in economic activities under joint control through a contractual agreement, meaning that strategic financial and operating decisions related to the joint venture must be made with the consensus of

• 26 -

those sharing control. If another entity is created under a joint venture agreement in which each of the joint venture controllers has an interest, that entity is a jointly controlled entity.

The business results and assets and liabilities of associates and joint ventures are included in the financial statements under the equity method, except for the assets classified as held for sale. Under the equity method, investments in associates and joint ventures are initially recognized at cost on the balance sheet and subsequently adjusted for changes in the Company’s share of the investee’s net assets. When the Company’s share of losses in an associate or joint venture exceeds its interest in that associate, an additional loss is recognized only to the extent that the Company has incurred legal or constructive obligations or made payments on behalf of the associate. The excess of the acquisition cost over the Company’s share of the net fair value of the identifiable assets and liabilities of the associate and the joint venture at the date of acquisition is recognized as goodwill and is included in the carrying amount of the investment. The excess of the Company’s share of the net fair value of the identifiable assets and liabilities of its associates and joint ventures over the acquisition cost at the date of acquisition is recognized as a gain immediately upon reassessment.

In assessing impairment, the Company considers the entire carrying amount of the investment (including goodwill) as a single asset and compares the recoverable amount (higher of value in use or fair value less selling cost) with the carrying amount to test for impairment, and the impairment loss recognized is included in the carrying amount of the investment. Any reversal of the impairment loss is recognized to the extent of the subsequent increase in the recoverable amount of the investment.

If the Company fails to subscribe for new shares issued by an associate or a joint venture in proportion to its shareholding ratio, resulting in a change in shareholding ratio and a consequent increase or decrease in the net equity value of an investment, the increase or decrease is adjusted to capital surplus and investments accounted for using the equity method. However, if the ownership interest in an associate decreases because the Company does not subscribe for or acquire new shares in proportion to its shareholding ratio, the amount recognized in other comprehensive income related to the associate is reclassified on a pro rata basis to reflect the decrease in ownership

• 27 -

interest, which is accounted for on the same basis as that used for the disposal of assets or liabilities by the associate directly.

When a consolidated entity enters into transactions with associates and joint ventures, unrealized gains and losses are eliminated in proportion to its share on consolidation.

(XII) Property, plant and equipment

Property, plant and equipment are recognized at acquisition cost and presented at cost less accumulated depreciation and accumulated impairment. The cost of property, plant and equipment consists of expenditures that are directly attributable to the acquisition or construction of the assets, any other directly attributable costs that are necessary to bring the asset to a useable condition for its intended purpose, and dismantling, relocation and site restoration costs. The foregoing costs include the cost for replacing part of the plant and equipment and the necessary interest expense incurred on construction contracts.

Real estate under construction is presented at cost less all recognized impairment losses. (Cost includes professional service expenses). Such real estate is classified to the appropriate category of property, plant and equipment when completed and reaching the expected use state. Such assets are depreciated on the same basis as other real estate assets, which commences when the assets reach the expected use state. Self-owned land is not depreciated.

When a major item of property, plant and equipment is required to be replaced on a regular basis, the Company considers that item as an individual asset and recognizes depreciation according to specified useful life and depreciation method. Major maintenance costs are considered as replacement costs and recognized as part of the carrying amount of property, plant and equipment if the conditions for recognition are met. Other maintenance expenses are recognized in profit or loss. The present value of the expected decommissioning cost of an asset after use is included in the cost of the related asset if it meets the recognition criteria for liability reserve.

Each part of property, plant and equipment is depreciated separately and considered as a separate item (significant component) of property, plant and equipment if its cost is material in relation to the total cost of that item.

• 28 -

After initial recognition, an item or a significant component of property, plant and equipment is derecognized and recognized in profit or loss if it is disposed of or if no future economic benefits are expected to flow from its use or disposal. Depreciation is calculated recognized in profit or loss over the estimated useful lives of individual components of property, plant and equipment on a straight-line basis because it best reflects the expected consumption pattern of future economic effects of the assets.

Depreciation is calculated according to the following estimated useful lives:

Property and building	5 - 51 years
Machinery equipment	2 - 16 years
Molding equipment	2 - 3 years
Transportation equipment	2 - 6 years
Computer and telecommunication equipment	4 years
Office equipment	3 - 5 years
Business equipment	2 - 7 years
Leasehold improvements	5 years
Other equipment	2 - 11 years

Depreciation is calculated using the straight-line method to write off the cost of assets less their residual values over their useful lives. Estimated useful lives, residual values and depreciation methods are reviewed at the end of each reporting period, and the impact of any changes in estimates is recognized on a deferred basis.

Items of property, plant and equipment are derecognized when they are disposed of or when no future economic benefits are expected from the continued use of the asset. Gains or losses arising from the disposal or scrapping of property, plant and equipment are recognized in profit or loss as the difference between the disposal price and the carrying amount of the asset.

(XIII) Leases

1. Lease judgment

At the inception of a contract, the Company assesses whether the contract is, or contains, a lease.

1. The Company as lessee

The Company recognizes right-of-use assets and lease liabilities at the inception date of the lease. Right-of-use assets are measured initially at cost, which consists

• 29 -

of the initially measured amount of the lease liability, adjusted for any lease payments made on or before the inception date of the lease, plus original direct costs incurred and the estimated costs to dismantle or remove the underlying asset and reinstate the underlying asset or its original location, less any lease incentives received.

The right-of-use assets are subsequently depreciated on a straight-line basis from the lease commencement date to the earlier of the end of the asset’s useful life or the end of the lease term. In addition, the Company periodically evaluates right-of-use assets for impairment and handles any incurred impairment losses, and adjusts right-of-use assets in case of remeasurement of lease liabilities.

Lease liabilities are measured initially at the present value of outstanding lease payments at the inception date of the lease. The implicit interest rate of the lease is easy to determine, the discount rate is that interest rate, otherwise the Company’s incremental borrowing rate is used. Generally, the Company uses its incremental borrowing rate as the discount rate.

Lease payments included in the measurement of lease liabilities consist of:

• (1) Fixed payments, including substantial fixed payments;

• (2) Variable lease payments that depend on an index or a rate are initially measured using the index or rate at the inception date of the lease.

Subsequently, the interests on lease liabilities are calculated using the effective interest method, and their amounts are remeasured when the following circumstances occur:

• (1) A change in the index or rate used to determine lease payments results in a change in future lease payments;

• (2) A change in the estimate of whether to exercise the option to extend or terminate the lease, which changes the assessment of the lease term;

• (3) Changes in the amount of residual value guarantee expected to be paid;

• (4) Changes in the evaluation of purchase options for the underlying assets;

• (5) Changes in the subject matter, scope or other terms of the lease.

When a lease liability is remeasured as a result of changes in the index or rate used to determine the lease payments, changes in the amount of residual value

• 30 -

guarantee, and changes in the evaluation of purchase, extension or termination options, the carrying amount of the right-of-use asset is adjusted accordingly, and the remaining amount of the remeasurement is recognized in profit or loss when the carrying amount of the right-of-use asset is reduced to zero.

For lease modifications that reduce the scope of the lease, the carrying amount of the right-of-use asset is reduced to reflect the partial or full termination of the lease, and its difference from the remeasurement amount of the lease liability is recognized in profit or loss.

The Company presents right-of-use assets and lease liabilities that do not meet the definition of investment property as separate line items on the balance sheet.

For short-term leases of business equipment and other equipment and leases of low-value assets, the Company chooses not to recognize right-of-use assets and lease liabilities, and but recognizes the related lease payments as expenses on a straight-line basis over the lease term.

For sale and leaseback transactions, whether the transfer of an asset to a buyer-lessor satisfies the requirements for sale is evaluated in accordance with IFRS 15. If it is determined that the asset is sold, such asset is derecognized and the portion of the right transferred to the buyer-lessor is recognized in profit or loss. Leaseback transactions are accounted for as lessee transactions, and the right-of-use asset is measured at the original amount of the portion of the asset leased back. If the requirements for sale are not met, the transferred asset is further recognized and the consideration received is recognized as a financial liability.

3. The Company as lessor

Lease agreements in which the Company is the lessor are classified as a finance lease if substantially all the risks and returns of ownership to the underlying asset have been transferred or an operating lease otherwise at the inception date of the lease. In the evaluation, the Company considers relevant specific indicators, including whether the lease term covers a significant portion of the economic life of the underlying asset.

• 31 -

If the Company is a sub-lessor, the Company shall handle the transactions of primary lease and sublease separately and evaluate the classification of the sublease transaction based on the right of use derived from the primary lease. If the primary lease is a short-term lease and a recognition exemption is applied, the sublease transaction shall be classified as an operating lease.

(XIV) Intangible assets

1. Goodwill

Goodwill on acquisitions of subsidiaries is measured at cost less accumulated impairment losses.

1. Other intangible assets

The Company acquired intangible assets with finite useful lives are shown at cost less accumulated amortization and accumulated impairment losses.

Amortization amount is calculated on a straight-line basis over the following useful lives:

Computer software Economic benefits or contract term

Estimated useful life and amortization method are reviewed at the end of the reporting period, and the impact of any changes in estimates is deferred.

(XV) Impairment of non-financial assets

The Company evaluates at each reporting date whether there is any indication showing that the carrying amount of non-financial assets (other than inventories, contract assets, and deferred tax assets) may be impaired. If any indication exists, the recoverable amount of the asset shall be estimated.

For the purpose of impairment test, a group of assets of which a significant portion of the cash inflows are independent of other individual assets or the cash inflow of an asset group is identified as the smallest identifiable asset group. Goodwill acquired from business merger is allocated to each cash generating unit or group of cash generating units that is expected to benefit from the merger synergies.

The recoverable amount is the higher of the fair value of an asset or cash generating unit less the disposal cost and its value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks

• 32 -

specific to the asset or cash generating unit.

An impairment loss is recognized if the recoverable amount of an asset or cash generating unit is less than its carrying amount.

An impairment loss is recognized immediately in profit or loss. The carrying amount of amortized goodwill of a cash generating unit is reduced first, and then the carrying amount of that asset is reduced in proportion to the carrying amount of other assets in the unit.

Impairment losses on goodwill are not reversed. Non-financial asset other than goodwill is reversed only to the extent that the carrying amount (net of depreciation or amortization) of the asset does not exceed the carrying amount that would have been determined if no impairment loss had been recognized for the asset in previous years.

(XVI) Provisions

The provision for liabilities is recognized when there is a present obligation arising from past events, it is likely that an outflow of economic resources will be required to settle the obligation, and the amount of the obligation can be reliably estimated.

The amount recognized as a provision for liabilities is the best estimate of the expenses that will be required to settle the obligation at the end of the reporting period, taking into account the risks and uncertainties of the obligation. If the provision for liabilities is measured at the estimated cash flows to settle the present obligation, the carrying amount is the present value of such cash flows.

(XVII) Revenue recognition

Revenue is measured at the consideration expected to be received for the goods or services transferred. The Company recognizes the revenue when control over goods or services is transferred to the customer to satisfy performance obligations.

1. Sales of goods

The Company recognizes the revenue when control of the product is transferred to the customer. The control over a product is transferred when the product is delivered to the customer, the customer has complete control over the product’s distribution channels and price, and there are no outstanding obligations that would affect the customer’s acceptance of the product. Delivery occurs when the product is shipped to a specific location and the risks of obsolescence and loss are

• 33 -

transferred to the customer. The customer has accepted the product under a sales contract, the terms of acceptance have expired, or the Company has objective evidence showing that all conditions of acceptance have been met.

The Company recognizes accounts receivable upon delivery of goods because the Company has an unconditional right to receive consideration at that time.

1. Financial components

The Company does not adjust the time value of money of the transaction price because it expects the time interval between the transfer of goods or services to the customer and the time the customer pays for those goods or services to be less than one year for all customer contracts.

(XVIII) Government grants

Government grants are recognized only when the conditions attached to the grant are met and the grant is expected to be received.

(XIX) Employee benefits

1. Defined contribution plans

Contribution obligations to defined contribution pension plans are recognized as expenses over the employees’ service provision period. Prepaid contributions are recognized as an asset to the extent that they result in a cash refund or a reduction in the future payments.

1. Defined benefit plan

The Company’s net obligation for defined benefit plans is calculated by discounting the present value of future benefit amounts earned by employees for current or prior periods of service, less the fair value of plan assets.

The defined benefit obligation is actuarially calculated annually by a qualified actuary using the projected unit benefit method. When the calculation results are probable to be favorable to the Company, the assets are recognized to the extent of the present value of any economic benefits that may be obtained in the form of refunds of contributions from the plan or reductions in future contributions to the plan. The present value of economic benefits is calculated taking into account any minimum contribution requirements.

• 34 -

The remeasurement of the net defined benefit liabilities, including actuarial gains and losses, the return on plan assets (excluding interest), and any changes in the impact of the asset ceiling (excluding interest) are recognized immediately in other comprehensive income and accumulated in retained earnings. The Company determines that net interest expense (income) on the net defined benefit liability (asset) uses the net defined benefit liability (asset) and discount rate determined at the beginning of the annual reporting period. Net interest expense and other expenses of the defined benefit plan are recognized in profit or loss.

Changes in benefits related to prior service costs or reduced benefits or losses resulting from plan revisions or reductions are recognized immediately in profit or loss. The Company recognizes gains or losses on settlement of a defined benefit plan when the settlement occurs.

1. Short-term employee benefits

Short-term employee benefit obligations are recognized as expenses when services are rendered. If the Company has a present legal or constructive obligation to pay as a result of past service rendered by employees, and the obligation can be estimated reliably, the amount is recognized as a liability.

(XX) Borrowing costs

Borrowing costs directly attributable to the acquisition of an asset are included as part of the cost of that asset until substantially all activities necessary to bring the asset to its intended use or sale state have been completed.

Except for the above, all other borrowing costs are recognized as profit or loss in the year in which they are incurred.

(XXI) Income tax

The income tax for the period comprises current and deferred tax.

Current income taxes include income taxes payable or tax refunds receivable based on the taxable income (loss) in current year, and any adjustments to income taxes payable or tax refunds receivable in previous years. The amount is the best estimate of the amount expected to be paid or received, as measured by the statutory tax rate or the tax rate under substantive legislation at the reporting date.

• 35 -

Deferred income taxes are measured and recognized for temporary differences between the carrying amounts of assets and liabilities at the date of financial reporting and their tax bases. Unused tax losses and unused tax credits in later periods of transfer, and deductible temporary differences are recognized as deferred tax assets to the extent that it is very likely that future taxable income will be available. They shall also be reassessed at each reporting date and reduced to the extent that the relevant income tax benefit is not within the scope very likely to be realized; or the originally reduced amount shall be reversed to the extent that it is very likely to generate sufficient taxable income.

Deferred tax assets and deferred tax liabilities are offset only if the following conditions are met simultaneously:

1. There is a legally enforceable right to offset current tax assets against current tax liabilities; and

2. The deferred tax assets and liabilities are relate to one of the following taxpayers that are subject to the income tax levied by the same taxation authority: (1) The same taxpayer; or

3. (2) Different taxpayers, provided that each taxpayer intends to settle current income tax liabilities and assets on a net basis, or to realize assets and settle liabilities simultaneously in each future period in which significant amounts of deferred income tax assets are expected to be recovered and deferred income tax liabilities are expected to be settled.

(XXII) Earnings per share

The Company presents basic and diluted earnings per share attributable to equity holders of the Company’s common shares. Basic earnings per share is calculated by dividing the profit or loss attributable to the equity holders of the Company’s common shares by the weighted average number of outstanding common shares in current period. Diluted earnings per share is calculated by dividing the profit or loss attributable to the equity holders of the Company’s common shares by the weighted average number of outstanding common shares, adjusted for the impact of all potential diluted common shares.

• 36 -

(XXIII) Segment information

Operating segments are components of the Consolidated Company that engage in operating activities that may generate revenues and incur expenses (including revenues and expenses related to transactions with other components of the Consolidated Company). The operating results of all operating segments are reviewed periodically by the key operating decision maker of the Consolidated Company in order to make decisions on the allocation of assets to such segments and evaluate the performance. Each operating segment has its separate financial information.

V. Significant Accounting Judgment, Estimates, and Assumptions and the Main Sources of Assumption Uncertainty

The Company and its subsidiaries take into account the economic impact of the COVID-19 epidemic in significant accounting estimates, and the management will continue to review estimates and underlying assumptions. Amendments to accounting estimates are recognized in the period when the estimates are revised if the amendments affect only that period. If revisions affect both current and future periods, the accounting estimates are recognized in the current and future periods.

Management is required to make judgments, estimates and assumptions when preparing the parent company only financial statements. They will affect the adoption of accounting policies and the reported amounts of assets, liabilities, revenues and expenses. Actual results may differ from estimates.

The management will continue to review estimates and underlying assumptions. Changes in accounting estimates are recognized in the period when the changes occur and in the future periods affected.

Information about uncertainties in assumptions and estimates that have a significant risk of causing a material adjustment in the next year is summarized below. The uncertainties in the following assumptions and estimates have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities in the next financial year and have reflected the impact of the COVID-19 pandemic. The relevant information is summarized below:

(I) Lose allowance for accounts receivable

The loss allowance for accounts receivable is estimated based on the assumptions of default risk and expected loss rate. The Company considers historical experience,

• 37 -

current market conditions and forward-looking estimates at each reporting date to determine the assumptions and inputs to be used in the impairment calculation. For details of the relevant assumptions and inputs, please refer to Note VI (V).

• (II) Evaluation of inventories

• Since inventories are measured at the lower of cost or net realizable value, the Company evaluates the amounts of normal inventory consumption, obsolete inventories or inventories without market selling value on reporting date, and writes down the cost of inventories to the net realizable value. Such an evaluation of inventories is principally based on the demand for the products within the specified period in the future. Therefore, there might be material changes due to rapid changes in the industry.

• (III) Impairment evaluation of investments accounted for using equity method When there is an indication that an investment by equity method has impaired and the carrying amount may not be recovered, the Company will evaluate such impairment immediately. The Company evaluates the impairment loss based on the investee’s future cash flow projections, including the sales growth rate and capacity utilization rate estimated by the investee’s internal management, and analyzes the reasonableness of the related assumptions.

• (IV) Impairment evaluation of tangible assets and intangible assets (excluding goodwill) During the asset impairment evaluation process, the Company relies on its subjective judgment, use mode of assets and characteristics of the industry, to determine the independent cash flows of a particular asset group, useful life of the assets and the likely future income and loss, and any change in estimates due to changes in economic conditions or the Company’s strategy may cause significant impairment or reversal of a recognized impairment loss in the future.

• (V) Recognition and measurement of provision for liabilities

• Provisions for product warranty liabilities are estimated at the time of revenue recognition and are based on the number of products under warranty, the history of the products, the expected maintenance rate and the expected unit maintenance cost. The Company continuously reviews the basis of these estimates and revises them when appropriate. Any change in the above estimate basis could materially affect the estimation of the provision for product warranty liabilities.

• 38 -

(VI) Realizability of deferred tax assets

Deferred tax assets are recognized only when it is probable that there will be sufficient taxable income for deductible temporary differences to be used in the future. Assessing the realizability of deferred tax assets must involve significant accounting judgments and estimates by the management, including assumptions about expected future sales revenue growth and profit margins, tax holiday periods, available income tax credits, and tax planning, etc. Any changes in the global economic environment, industrial environment and laws may cause significant adjustments to deferred tax assets.

(VII) Measurement of defined benefit obligation

The defined benefit cost and net defined benefit liabilities (assets) to be recognized for the defined benefit pension plan are actuarially valued using the projected unit benefit method. The actuarial assumptions adopted include discount rate, employee turnover rate, and increment rate of future salary. Such assumptions could materially affect the amounts of expenses and liabilities recognized if they change as a result of changes in market and economic conditions. For the significant actuarial assumptions used in the actuarial calculations and the sensitivity analysis, please refer to Note VI (XVII).

VI. Summary of Significant Accounting Titles

(I) Cash and cash equivalents

(I)	Cash and cash equivalents
(II)	Cash Bank deposits Financial assets at FVTPL Current items: Mandatorilymeasured at FVTPL	December 31,2023 $ 2,661 863,512 $ 866,173 December 31,2023 $ 417,099 119,830 $ 536,929 December 31,2023 $ 27 (27) $ -	December 31,2022
			$ 2,873 1,129,298
			$ 1,132,171
			December 31,2022
	Domestic listed (OTC) stocks Adjustments Non-current items: Mandatorilymeasured at FVTPL		$ 380,865 (3,863)
			$ 377,002
			December 31,2022
	Overseas non-listed (non-OTC) stocks Adjustments		$ 27 (27)
			-

• 39 -

• Profits (losses) recognized in relation to the financial assets at fair value through profit or loss are listed below:

profit or loss are listed below:
Mandatorily measured at FVTPL Profits (losses) on valuation Gain on disposal Dividend revenue	2023 $ 123,694 $ 2,841 $ 23,144	2022
		$ (11,149)
		$ 2,095
		$ 16,926

1. The Company has no financial assets at fair value through profit or loss pledged to others.

2. The above equity instruments of the Company are held for trading and are therefore measured at fair value through profit or loss.

3. The Company invested in AUTECH EUROPE, a French agency, at an amount of FRF 5,000 (equaling to NT$27 thousand) in 1990, and the total capital amount of AUTECH EUROPE was FRF 100,000. In 1996, due to value impairment and little hope of recovery of the investee companies, all were recognized as losses.

(III) Financial assets at FVTOCI

Financial assets at FVTOCI
Measured at FVTOCI Domestic listed (OTC) stocks Adjustments	December 31,2023 $ 5,372 (3,381) $ 1,991	December 31,2022
		$ 21,391 (10,933)
		$ 10,458

1. The Company holds the above equity instruments as long-term strategic investments and therefore designates these investments as at fair value through other comprehensive income.

2. The Company disposed of equity investments at fair values of NT$7,012 thousand and NT$3,808 thousand in 2023 and 2022, respectively, and the accumulated losses and gains on disposal were NT$(9,038) thousand and NT$1,125 thousand, respectively. The above accumulated disposal losses and gains have been transfered to the retained earnings from other equities.

3. 40 -

4. Amounts recognized in profit or loss in relation to the financial assets at fair value through other comprehensive income are listed below:

through other comprehensive income	are listed below:
Measured at FVTOCI Dividend income recognized in profit or loss Held at the end of the period Derecognized during the period Changes in fair value recognized in other comprehensive income Accumulated gains (losses) transferred to retained earnings due to derecognition	2023 $ 164 - $ 164 $ (1,486) $ (9,038)	2022
		$ 1,188 -
		$ 1,188
		$ (13,848)
		$ 1,125

1. The Company has no financial assets at fair value through other comprehensive income pledged to others.

2. (IV) Financial assets measured at amortized cost

Pledged time deposits Non-current	December 31,2023 $ 10,137 $ 10,137	December 31,2022
		$ -
		$ -

1. For information on pledged financial assets at amortized cost, please refer to Note VIII.

2. (V) Notes and accounts receivable

VIII. Notes and accounts receivable
Notes receivable Less: Loss allowance Net Account receivables Less: Loss allowance Net	December 31,2023 $ 164,157 (7,057) $ 157,100 December 31,2023 $ 361,606 (10,964) $ 350,642	December 31,2022
		$ 386,323 (4,683)
		$ 381,640
		December 31,2022
		$ 468,846 (11,234)
		$ 457,612

The average credit period for merchandise sales ranges from 30 to 90 days for monthly

statement, and accounts receivable are non-interest-bearing.

The loss allowance for accounts receivable of the Company is recognized by simplified method under IFRS 9 according to lifetime expected credit losses. The

• 41 -

lifetime expected credit loss is calculated using provision matrix and takes past breach records of the customer, the current financial condition and industrial economic trend. Since the Company’s historical experience of credit losses shows that there is no significant difference in the pattern of losses among different customer groups, therefore, the reserve matrix does not further distinguish between the customer groups, but only determines the expected credit loss rate based on the number of days overdue on accounts receivable.

If any evidence shows the counterparty faces significant financial difficulty and the collectible amount cannot be reasonably expected, the Company will directly offset the relevant accounts receivable but keep track of the receivables. The recovered amount is recognized in profit or loss.

The Company measures the loss allowance of note and accounts receivable according to the provision matrix as follows:

Not past due 1 - 30 days past due 31 - 180 days past due 181 - 365 days past due Over 366 days past due Total Not past due 1 - 30 days past due 31 - 180 days past due 181 - 365 days past due Over 366 days past due Total		December 31,2023
	Total carrying amount $ 475,225 6,931 21,479 10,761 11,367 $ 525,763	Loss allowance (lifetime expected credit losses) $ (7,787) (86) (619) (1,495) (8,034) $ (18,021) December 31,2022	Amortized cost
			$ 467,438 6,845 20,860 9,266 3,333 $ 507,742
	Total carrying amount $ 811,590 12,382 15,109 5,603 10,485 $ 855,169	Loss allowance (lifetime expected credit losses) $ (6,104) (248) (388) (1,352) (7,825) $ (15,917)	Amortized cost
			$ 805,486 12,134 14,721 4,251 2,660
			$ 839,252

• 42 -

The expected credit loss ratios of the Company for each of the above sections (excluding unusual items for which 100% of the total amount has been presented) were 1% or less for not past due and 90 days or less past due; 5% or less for 365 days or less past due; and 5% - 80% for more than 365 days past due.

The changes in the Company’s loss allowance of notes and accounts receivable are as follows:

follows:
Opening balance Presentation (reversal) in the current period Write-offs in the current period Impacts of exchange rate Ending balance	2023 $ 15,917 2,337 (131) (102) $ 18,021	2022
		$ 34,478 2,172 (20,803) 70
		$ 15,917

(VI) Inventories

Inventories
December 31,2023 Products $ 4,655 Raw materials 416,910 Work in process 924,154 Finished goods 103,055 $ 1,448,774 1. Inventory-related expenses recognized in the current period 2023 Cost of goods sold $ 1,878,841 Loss on market value decline and obsolete and slow-moving inventories 81,529 Inventory obsolescence 3,382 Inventory loss (profit) 3,339 Income from sale of scraps (397) Idle capacity related costs 36,100 $ 2,002,794	December 31,2022
	$ 5,242 579,565 916,835 105,365
	$ 1,607,007
	2022
	$ 2,362,128 41,547 2,352 2,294 (1,205) 25,501
	$ 2,432,617

1. As of December 31, 2023 and 2022, there were no guarantees or pledges on

inventories.

• 43 -

(VII) Investments accounted for using equity method

December 31, 2023 December 31, 2022 Associates $ 116,713 $ 109,850

The Company’s associates are listed below:

Investee company Yama Seiki USA, Inc. Huahan Leasing Co., Ltd.	Main business Design and production of CNC machine tools, CNC systems, servo devices and related components with more than three axes linkage, and maintenance and sales of precision CNC machine tools Rental of machinery and equipment	Place of establishment and operation USA Taiwan	Carrying amount December 31,2023 December 31,2022 $ 108,435 $ 101,849 8,278 8,001 $ 116,713 $ 109,850	Percentage of ownership interest and voting rights held bythe Company	Percentage of ownership interest and voting rights held bythe Company
			December 31,2023	December 31,2023	December 31,2022
			$ 108,435 8,278	28.58% 13.33%	28.58% 13.33%
			$ 116,713

1. On December 23, 2010, the Company’s Board of Directors resolved to invest US$1,700 thousand in YAMA SEIKI USA, INC. to engage in the sales and installation of parts and accessories of tool machines, mechanical instruments and international trade business.

2. In August 2021, the Company resolved to invest NT$7,333 thousand in Huahan Leasing Co., Ltd. to engage in the machinery and equipment leasing business.

3. The Company’s share of profit or loss and other comprehensive income in its associates using equity method in 2023 and 2022 are recognized in accordance with the associates’ financial statements audited by CPAs over the same period.

4. 44 -

(VIII) Property, plant and equipment

(VIII) Property, plant and equipment
December 31,2023 Self-owned land $ 536,761 Property and building 987,076 Machinery equipment 130,597 Molding equipment 9,435 Transportation equipment 12,267 Computer and telecommunication equipment 7,726 Office equipment 270 Business equipment 4,050 Leasehold improvements - Other equipment 13,725 Unfinished construction and equipments pending acceptance 39,865 $ 1,741,772 January 1, 2023 Additions Disposals Reclassification Cost Self-owned land $ 536,761 $ - $ -$ - Property and building 1,598,745 87 (516) - Machinery equipment 388,424 6,786 (54) (30) Molding equipment 54,368 6,223 (202) 658 Transportation equipment 71,006 2,289 (4,015) - Computer and telecommunication equipment 19,703 275 (581) 2,014 Office equipment 5,990 74 (1,961) (1,326) Business equipment 18,812 1,411 - - Leasehold improvements 749 - - - Other equipment 60,920 872 (619) (1,316) Unfinished construction and equipments pending acceptance 9,536 31,459 (1,109) - $ 2,765,014 $ 49,476 $ (9,057) $ -	December 31,2023		December 31,2022 $ 536,761 1,045,193 149,012 6,304 15,187 8,833 1,463 5,989 - 19,195 9,536 $ 1,797,473 Impacts of exchange rate December 31, 2023 $ - $ 536,761 (8,056) 1,590,260 (3,492) 391,634 (74) 60,973 (238) 69,042 (148) 21,263 (77) 2,700 - 20,223 - 749 (664) 59,193 (21) 39,865 $ (12,770) $ 2,792,663
	$	536,761 987,076 130,597 9,435 12,267 7,726 270 4,050 - 13,725 39,865
	$	1,741,772
		Reclassification $ - - (30) 658 - 2,014 (1,326) - - (1,316) - $ -
				$ 536,761 1,590,260 391,634 60,973 69,042 21,263 2,700 20,223 749 59,193 39,865
				$ 2,792,663

• 45 -

Accumulated depreciation Property and building Machinery equipment Molding equipment Transportation equipment Computer and telecommunication equipment Office equipment Business equipment Leasehold improvements Other equipment Net Cost Self-owned land Property and building Machinery equipment Molding equipment Transportation equipment Computer and telecommunication equipment Office equipment Business equipment Leasehold improvements Other equipment Unfinished construction and equipments pending acceptance	January 1, 2023 $ 553,552 239,412 48,064 55,819 10,870 4,527 12,823 749 41,725 $ 967,541 $ 1,797,473 January 1, 2022 $ 536,761 1,592,374 413,581 51,161 67,279 12,578 8,357 17,802 749 50,376 9,459 $ 2,760,477	Depreciation $ 52,614 23,794 3,494 4,961 2,416 514 3,350 - 5,245 $ 96,388 Additions $ - - 1,892 3,560 5,362 7,313 707 1,010 - 1,045 60 $ 20,949	Disposals $ (283) (34) (182) (3,807) (523) (1,952) - - (558) $ (7,339) Disposals $ - - (19,896) (412) (1,846) (309) (3,124) - - (1,083) - $ (26,670)	Reclassification $ - 2 227 - 889 (602) - - (516) $ - Reclassification $ - - (10,210) - - - - - - 10,210 - $ -	Impacts of exchange rate	December 31, 2023 $ 603,184 261,037 51,538 56,775 13,537 2,430 16,173 749 45,468 $ 1,050,891 $ 1,741,772 December 31, 2022
					$ (2,699) (2,137) (65) (198) (115) (57) - - (428)
					$ (5,699)
					Impacts of exchange rate $ - 6,371 3,057 59 211 121 50 - - 372 17 $ 10,258
						$ 536,761 1,598,745 388,424 54,368 71,006 19,703 5,990 18,812 749 60,920 9,536
						$ 2,765,014

• 46 -

Accumulated depreciation Property and building Machinery equipment Molding equipment Transportation equipment Computer and telecommunication equipment Office equipment Business equipment Leasehold improvements Other equipment Net	January 1, 2022 $ 497,566 234,701 45,276 52,058 9,610 7,036 9,520 728 30,988 $ 887,483 $ 1,872,994	Depreciation $ 54,359 25,761 3,159 5,386 1,464 574 3,303 21 5,529 $ 99,556	Disposals $ - (16,714) (412) (1,780) (285) (3,123) - - (828) $ (23,142)	Reclassification $ - (5,858) - - - - - - 5,858 $ -	Impacts of exchange rate	December 31, 2022
					$ 1,627 1,522 41 155 81 40 - - 178	$ 553,552 239,412 48,064 55,819 10,870 4,527 12,823 749 41,725
					$ 3,644	$ 967,541
						$ 1,797,473

1. For properties, plants and equipment provided by the Company as the guarantee for borrowings, please refer to Note VIII for details.

2. The land accounted for by the Company as at December 31, 2023 and 2022 was partly agricultural land with title temporarily registered in the name of another person for an amount of NT$88,529 thousand, in respect of which the Company has obtained a certificate of creation of other rights.

3. (IX) Lease arrangements

4. Right-of-use assets

Right-of-use assets
Land-use right Property and building	December 31,2023 $ 113,567 910 $ 114,477	December 31,2022
		$ 129,803 2,232
		$ 132,035

• 47 -

Cost Land-use right Property and building Accumulated depreciation Land-use right Property and building Net Cost Land-use right Property and building Accumulated depreciation Land-use right Property and building Net	January 1, 2023	Additions $ - - $ - Depreciation $ 14,076 1,322 $ 15,398 Additions $ 603 694 $ 1,297 Depreciation $ 14,102 1,422 $ 15,524	Disposals $ - (150) $ (150) Disposals $ - (150) $ (150) Disposals $ - (1,634) $ (1,634) Disposals $ - - $ -	Reclassification $ - - $ - Reclassification $ - - $ - Others $ 25,080 - $ 25,080 Others $ 25,080 - $ 25,080	Impacts of exchange rate $ (2,983) - $ (2,983) Impacts of exchange rate $ (823) - $ (823) Impacts of exchange rate $ 2,357 - $ 2,357 Impacts of exchange rate $ 545 - $ 545	December 31, 2023
	$ 210,875 4,394					$ 207,892 4,244
	$ 215,269					$ 212,136
	January 1, 2023					December 31, 2023
	$ 81,072 2,162					$ 94,325 3,334
	$ 83,234					$ 97,659
	$ 132,035					$ 114,477
	January 1, 2022					December 31, 2022
	$ 182,835 5,334					$ 210,875 4,394
	$ 188,169					$ 215,269
	January 1, 2022					December 31, 2022
	$ 41,345 740					$ 81,072 2,162
	$ 42,085					$ 83,234
	$ 146,084					$ 132,035

• 48 -

2. Lease liabilities

Lease liabilities
Current Non-current	December 31,2023 $ 638 280 $ 918	December 31,2022
		$ 11,420 918
		$ 12,338

3. Important renting activities and terms

• The Company leases some lands, plants, offices and transportation equipment for periods ranging from 3 to 10 years. Upon termination of the leases, the Company does not have a preemptive right to acquire the leased assets.

The Company rents land in the People’s Republic of China for the manufacturing of its products, with a lease period of 50 years. The lease payment is made in lump sum at the time of signing contract, and the Company does not have a purchase right on the land at the end of the term of land-use right.

1. Other lease information

4. Other lease information
2023 Short-term lease and lease expenses of low-value assets $ 3,835 Total cash outflow from leases $ 11,420 (X) Intangible assets December 31,2023 Goodwill $ 642 Computer software 12,014 $ 12,656	2023		2022
	$ 3,835		$ 1,199
	$ 11,420		$ 11,410
			December 31,2022
		$	642 9,726
		$	10,368

• 49 -

January 1, 2023 Additions Cost Goodwill $ 642 $ - Computer software 24,821 5,079 $ 25,463 $ 5,079 January 1, 2023 Amortization in current period Accumulated amortization Computer software $ 15,095 $ 2,752 $ 15,095 $ 2,752 Net $ 10,368 January 1, 2022 Additions Cost Goodwill $ 642 $ - Computer software 23,494 1,246 $ 24,136 $ 1,246 January 1, 2022 Amortization in current period Accumulated amortization Computer software $ 12,093 $ 2,965 $ 12,093 $ 2,965 Net $ 12,093 (XI) Overdue receivables Overdue receivables Less: allowance for uncollectible accounts	Disposals Reclassification $ - $ - (365) - $ (365) $ - Disposals Reclassification $ (365) $ - $ (365) $ - Disposals Reclassification $ - $ - - - $ - $ - Disposals Reclassification $ - $ - $ - $ - December 31,2023 $ 860 (860) $ -	Disposals Reclassification $ - $ - (365) - $ (365) $ - Disposals Reclassification $ (365) $ - $ (365) $ - Disposals Reclassification $ - $ - - - $ - $ - Disposals Reclassification $ - $ - $ - $ - December 31,2023 $ 860 (860) $ -	Impacts of exchange rate December 31, 2023 $ - $ 642 (110) 29,425 $ (110) $ 30,067 Impacts of exchange rate December 31, 2023 $ (71) $ 17,411 $ (71) $ 17,411 $ 12,656 Impacts of exchange rate December 31, 2022 $ - $ 642 81 24,821 $ 81 $ 25,463 Impacts of exchange rate December 31, 2022 $ 37 $ 15,095 $ 37 $ 15,095 $ 10,368 December 31,2022 $ 9,732 (9,732) $ -	Impacts of exchange rate December 31, 2023 $ - $ 642 (110) 29,425 $ (110) $ 30,067 Impacts of exchange rate December 31, 2023 $ (71) $ 17,411 $ (71) $ 17,411 $ 12,656 Impacts of exchange rate December 31, 2022 $ - $ 642 81 24,821 $ 81 $ 25,463 Impacts of exchange rate December 31, 2022 $ 37 $ 15,095 $ 37 $ 15,095 $ 10,368 December 31,2022 $ 9,732 (9,732) $ -	December 31, 2023
					$ 642 29,425
					$ 30,067
					December 31, 2023
					$ 17,411
					$ 17,411
					$ 12,656
					December 31, 2022
					$ 642 24,821
					$ 25,463
					December 31, 2022
	$		$		$ 15,095
	$		$		$ 15,095
					$ 10,368
		$ 860 (860)		$ 9,732 (9,732)
		$ -		$ -

• 50 -

(XII) Other financial assets - current

Other financial assets - current
Special funds for repatriation of overseas funds Restricted assets - bank deposits	December 31,2023 $ 343,987 - $ 343,987	December 31,2022
		$ 353,397 188,170
		$ 541,567

Regarding the special funds to be repatriated upon approval of the National Taxation Bureau, Ministry of Finance in accordance with the “Regulations of Repatriated Offshore Funds”, the Group intends to submit an investment plan to the Ministry of Economic Affairs within one year from the date on which the funds are deposited in a special account for foreign exchange deposits in accordance with Article 8 of the Regulations. Pursuant to the Regulations, the said plan was approved by the Ministry of Economic Affairs through the approval document No. 11020433960 on September 23, 2021.

(XIII) Short-term borrowings

Short-term borrowings
Secured loans Credit loans Interest rate	December 31,2023 $ 376,852 1,200,000 $ 1,576,852 1.6800% -3.6000%	December 31,2022
		$ 509,949 1,445,000
		$ 1,954,949
		1.3123%-4.9000%

Please refer to Note VIII for the guarantees provided.

(XIV) Short-term notes and bills payable

Short-term notes and bills payable
Short-term notes and bills payable Less: Discount on short-term notes and bills payable Interest rate	December 31,2023 $ 80,000 (13) $ 79,987 1.4500%	December 31,2022
		$ 290,000 (359)
		$ 289,641
		1.3000%-1.7800%

• 51 -

(XV) Other payables

(XV) Other payables
Other expenses payable Employee compensation payable Remuneration payable to directors and supervisors Dividends payable Construction and equipment payable Others (XVI) Current provisions Warranty Employee benefits January 1, 2023 Warranty $ 5,272 Employee benefits 7,173 $ 12,445 January 1, 2022 Warranty $ 4,355 Employee benefits 8,579 $ 12,934	December 31,2023 December 31,2022 $ 89,437 $ 101,697 16,000 16,000 2,750 1,800 491 491 212 2,379 3,288 6,522 $ 112,178 $ 128,889 December 31,2023 December 31,2022 $ 3,836 $ 5,272 9,099 7,173 $ 12,935 $ 12,445 New in currentperiod Reversal in currentperiod Impacts of exchange rate December 31, 2023 $ - $ (1,436) $ - $ 3,836 1,966 (8) (32) 9,099 $ 1,966 $ (1,444) $ (32) $ 12,935 New in currentperiod Reversal in currentperiod Impacts of exchange rate December 31, 2022 $ 917 $ - $ - $ 5,272 18 (1,448) 24 7,173 $ 935 $ (1,448) $ 24 $ 12,445	December 31,2022
		$ 101,697 16,000 1,800 491 2,379 6,522
		$ 128,889
		December 31,2022
		$	5,272 7,173
		$	12,445
			December 31, 2023
			$ 3,836 9,099
			$ 12,935
			December 31, 2022
			$ 5,272 7,173
			$ 12,445

1. Warranty provision for liabilities refers to that as agreed in the sales contract of products, the management of the Company makes optimal estimate based on historical experience of the products.

2. Provisions for employee benefit liabilities are recognized as a liability if the Company has a present legal or constructive obligation to pay as a result of past service rendered by employees, and the obligation can be estimated reliably.

3. 52 -

(XVII) Employee benefits

1. Defined benefit plan

The Company’s employee retirement plan under the “Labor Standards Act” is a defined benefit plan. Under the plan, the employee’s pension is calculated based on the number of years of service and the average salary of the six months before retirement. The Company contributes monthly an amount equal to 2% of the employees’ gross salaries to the Labor Pension Fund Supervisory Committee and deposits the funds in the name of the Committee in a special account at the Bank of Taiwan. The Funds are operated and managed by the government’s designated authorities. Accordingly, the Company does not have any right to intervene in the investments of the Funds.

The actuarial valuations of the present value of the defined benefit obligation of the Company are carried out by qualified actuaries. The major assumptions used in the actuarial valuation on the measurement date are listed below:

(1) Actuarial assumptions on the reporting date: December 31,2023 Discount rate 1.300% Expected salary adjustment rate 2.500%	December 31,2022
	1.400% 2.500%

• 53 -

• (2) The amounts of pension expenses recognized in the consolidated statements of comprehensive income in respect of defined benefit plan are shown below:

below:
2023 Current service cost $ 161 Interest cost on defined benefit obligation 403 Interest income on plan assets (283) Recognized in profit or loss 281 Remeasurement Actuarial gains (losses) - Experience adjustments 269 Actuarial gains (losses) - Adjustments to demographic assumptions - Actuarial gains (losses) - Adjustments to financial assumptions 259 Return on plan assets (177) Recognized in other comprehensive income 351 Total $ 632	2022
	$ 235 273 (180)
	328
	743 - (1,858) (2,181)
	(3,296)
	$ (2,968)

Pension expenses recognized in profit or loss for the above defined benefit plan are included in the following items:

Operating costs Selling and marketing expenses General and administrative expenses Research and development expenses Others	2023 $ 2,274 61 230 78 (2,362) $ 281	2022
		$ 624 71 62 70 (499)
		$ 328

• 54 -

(3) The Company’s obligation amount from defined benefit plans recognized in the consolidated balance sheets is as follows:

Present value of defined benefit obligation Fair value of plan assets Net defined benefit liability	December 31,2023 $ 27,587 (20,614) $ 6,973	December 31,2022
		$ 28,824 (19,833)
		$ 8,991

• (4) Changes in the present value of the Company’s defined benefit obligations are presented below:

are presented below:
Opening balance Current service cost Net interest expense Remeasurement Actuarial gains - Experience adjustments Actuarial losses - Adjustments to demographic assumptions Actuarial gains - Adjustments to financial assumptions Benefits paid for plan assets Ending balance	2023 $ 28,824 161 403 269 - 259 (2,329) $ 27,587	2022
		$ 36,351 235 273 743 - (1,858) (6,920)
		$ 28,824

• (5) Changes in the fair value of the Company’s plan assets are presented below:

Opening balance Interest income Remeasurement Return on plan assets Contributions from employer Benefits paid for plan assets Ending balance	2023 $ 19,833 283 177 2,650 (2,329) $ 20,614	2022
		$ 23,557 180 2,181 835 (6,920)
		$ 19,833

The Company expects to contribute NT$761 thousand to the defined benefit plan within one year after December 31, 2023.

• 55 -

• Defined contribution benefit plan

The employee retirement plans of AWEA and its domestic subsidiaries under the “Labor Pension Act” are defined contribution plan. The above companies contribute an amount equal to 6% of the employees’ monthly wages to the special accounts at the Bureau of Labor Insurance.

The pension payment of Shanghai Zhuwai Mechanical and Electrical Co., Ltd., AWEA Mechantronic (Suzhou) Ltd., and Yih Chuan Machinery (Jiaxing) Industry Co., Ltd. adopts defined contribution system. The pension benefits are contributed monthly by the company and deposited into the employees’ individual pension accounts, which are completely separated from the company and are transferred when employees leave the company. The contribution amount is recognized as current expense. B-Way (Cayman) Co., Ltd., Billion-Way (Cayman) Co., Ltd., Axtron Int’l Investment Co., Ltd. and Axtron Int’l Investment Limited have no regular employees and have no agreement on pension payment.

In accordance with the above regulations, the pension costs recognized by the Company for the years ended December 31, 2023 and 2022 were NT$20,760 thousand and NT$20,276 thousand, respectively.

(XVIII) Share capital

As of December 31, 2023, the Company’s authorized common stock amounted to NT$1,000,000 thousand, with paid-in capital of NT$965,942 thousand, par value of NT$10 per share, divided into 96,594,171 shares.

(XIX) Capital surplus

1. Pursuant to the Company Act, capital surplus may not be used except to cover a deficit or to increase capital. Capital surplus should not be used to cover accumulated deficit unless the legal reserve is insufficient.

2. Pursuant to the 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. However, the capital increase is limited to a certain percentage of the paid-in capital each year. In addition, changes in ownership

3. 56 -

interest in subsidiaries recognized can be used to cover a deficit.

(XX) Retained earnings

Legal reserve should be appropriated until it reaches the total amount of paid-in capital. Legal reserve can be used to cover a deficit of the Company, and if there is no deficit, the excess of legal reserve over 25% of paid-in capital may be used to distributed new shares or cash to shareholders in proportion to their original shares.

The Company allocates and reverse the special reserve in accordance with Jin-Guan-Zheng-Fa-Zi No. 109050022 and the “FAQ on the Allocation of Special Reserve after Adoption of International Financial Reporting Standards (IFRSs)”. If the remaining balance of other shareholders’ equity is reversed, the reversed portion may be used to distribute earnings to the shareholders.

In accordance with the Company’s Articles of Incorporation, the annual net income after final settlement shall be used to pay taxes and cover the deficits of prior years, 10% of the remaining income shall be set aside as legal reserve and special reserve in accordance with the law, and the remaining balance shall be added to the undistributed earnings of prior years and a part of which retained as the capital required for the business growth, and then the Board of Directors shall prepare the earnings distribution proposal and submit it to the shareholders’ meeting for resolution.

At the shareholders’ meetings of AWEA held on June 7, 2023 and June 15, 2022, respectively, the Company resolved to approve the earning distribution plan and the dividends per share for the years 2022 and 2021, respectively, as follows:

Legal reserve The distribution items are as follows: Capital surplus Cash dividends	Earningdistributionplan 2022 2021 $ 35,790 $ 13,278 - 28,979 154,551 115,913	Dividendsper	share(NT$)
	2022 $ 35,790 - 154,551	2022 $ - 1.6	2021
			$ 0.3 1.2

The above distribution of earnings did not differ from the resolutions made by the Board of Directors of AWEA on March 13, 2023 and March 15, 2022, respectively. Information on the earning distribution condition proposed by the Board of Directors

• 57 -

and resolved by the Shareholders’ Meeting, is available on the “Market Observation Post System” website of the Taiwan Stock Exchange.

The distribution of earnings for 2023 had been approved by the Board of Directors of AWEA on March 5, 2024 as follows:

Legal reserve The distribution items are as follows: Cash dividends	Earning distribution plan 2023 $ 20,149 144,891	Dividends per share (NT$)
		2023
		$ 1.5

The distribution of earnings for 2023 is to be resolved by the shareholders’ meeting to be held on June 18, 2024.

(XXI) Other equity items

Exchange differences arising from the translation adjustments of the financial statements of foreign operations are the relevant exchange differences generated from the translation of the functional currency of the net assets of foreign operations into AWEA’s presentation currency (i.e., New Taiwan dollars), and are recognized directly in other comprehensive income. The losses and gains recognized in other comprehensive income for the years ended December 31, 2023 and 2022 were NT$(14,590) thousand and NT$18,524 thousand, respectively.

(XXII) Non-controlling interests

Non-controlling interests
Opening balance Shares attributable to non-controlling interests Net profit (loss) Other comprehensive income Ending balance	2023 $ 115,519 (20,505) (1,273) $ 93,741	2022
		$ 119,261 (4,856) 1,114
		$ 115,519

• 58 -

(XXIII) Operating revenue

			2023		2022
Total operating revenue		$	2,370,121	$	3,108,963
Less: Sales returns and discounts			(8,204)		(8,446)
		$	2,361,917	$	3,100,517
			2023		2022
Sales revenue		$	2,241,199	$	2,957,565
Maintenance and other income			120,718		142,952
		$	2,361,917	$	3,100,517
1.	Revenue segmentation
	Major sales market by geography:
			2023		2022
	Domestic sales	$	279,683	$	806,651
	Export
	Asia		1,444,129		1,483,083
	America		327,990		377,286
	Europe		275,380		427,914
	Other countries		34,735		5,583
		$	2,361,917	$	3,100,517
2.	Contract balance:
	(1) Changes in contract liabilities result from the difference between the
	fulfillment of contractual obligations and the payment from customers.
			2023		2022
	Contract liabilities	$	172,215	$	225,013
	(2) Amount of opening contract	liabilities recognized as revenue in current
	period is:
			2023		2022
	Sales revenue	$	168,298	$	201,348
(XXIV) Other income
			2023		2022
Rental income		$	12,964	$	11,570
Dividend revenue			23,308		18,114
Other income			29,194		16,327
		$	65,466	$	46,011

• 59 -

(XXV) Other gains and losses

Other gains and losses
Foreign currency exchange gain (loss) Net gain on disposal of property, plant and equipment Gains from disposal of financial assets Gain (loss) on financial valuation at fair value through profit or loss Others	2023 $ 5,961 61 2,841 123,694 (471) $ 132,086	2022
		$ 127,208 211 2,095 (11,149) (565)
		$ 117,800

(XXVI) Finance costs

Finance costs	Finance costs	Finance costs
2023 Interest on bank loans $ 32,703 Interest on lease liabilities 57 $ 32,760 Employee benefits, depreciation and amortisation expense 2023 Classified as operating costs Classified as operating expenses Employee benefits expense Salary expense $ 203,634 $ 132,536 Labor and health insurance expense 20,027 12,488 Pension expense 12,438 8,603 Director’s remuneration - 3,773 Other employee benefit expenses 4,981 5,503 Depreciation 84,708 27,078 Amortisation 488 2,264				2022
			$	25,834 168
			$	26,002
	Classified as operating costs $ 203,634 20,027 12,438 - 4,981 84,708 488	Classified as operating expenses		Total
		$ 132,536 12,488 8,603 3,773 5,503 27,078 2,264		$ 336,170 32,515 21,041 3,773 10,484 111,786 2,752

(XXVII) Employee benefits, depreciation and amortisation expense

• 60 -

Employee benefits expense Salary expense Labor and health insurance expense Pension expense Director’s remuneration Other employee benefit expenses Depreciation Amortisation		2022
	Classified as operating costs $ 221,718 20,787 13,174 - 7,324 87,623 517	Classified as operating expenses $ 149,619 12,855 7,929 2,440 6,471 27,457 2,448	Total
			$ 371,337 33,642 21,103 2,440 13,795 115,080 2,965

As of December 31, 2023 and 2022, the Company had 532 and 594 employees, respectively, including 7 and 5 directors who were not employees concurrently.

In accordance with the Company’s Articles of Incorporation, if the Company makes a profit during the year, the Company shall set aside not less than 3% to 8% as compensation to employees and not more than 2% as remuneration to directors and supervisors. The Company may distribute the above compensation to employees of its subsidiaries who meet certain criteria, and the terms and methods of distribution shall be determined by the Board of Directors. However, if the Company has accumulated deficit, an amount to cover such deficit shall be reserved in advance.

In 2023, the Company estimated employees’ compensation of NT$16,000 thousand and directors’ and supervisors’ remuneration of NT$2,750 thousand, respectively. The estimation is based on the past experience of actual distribution, the net income of the current period, and the percentage specified in the Articles of Incorporation, and the estimates are recognized as operating costs or expenses in the current year. If the actual distributed amounts in the following year are different from the estimates, they shall be handled as changes in accounting estimates, and the difference will be recognized as the profit or loss of the following year, with the related information

• 61 -

disclosed on the Market Observation Post System (MOPS).

In 2022, the Company’s compensation to employees and remuneration to directors and supervisors amounted to NT$16,000 thousand and NT$1,800 thousand, respectively, and the related information is available on the MOPS. There was no difference between the actual distributed amounts and the estimated amounts.

The information on the Company’s salary and remuneration policy (including directors, supervisors, managerial officers and employees) is as follows:

1. Remuneration to directors

The Company’s general directors and independent directors’ remuneration policy is determined according to their responsibilities, risks, invested time and other factors. In accordance with the Articles of Association of the Company, the remunerations to the Chairman, Vice-Chairman and directors of the Company shall be authorized to be determined by the Board of Directors according to the degree of their participation in the operation of the Company and the value of their contributions, taking into account both the domestic and foreign industry standards. The Articles of Association also separately provide for a remuneration of the directors to be not more than 2% of the annual profit of the Company.

1. Remuneration to supervisor

Since June, 2020, the Company established an Audit Committee to replace the supervisor system.

1. Remuneration to the managerial officers

The remuneration of the managerial officers of the Company shall be considered by the Remuneration Committee and submitted to the Board of Directors for resolution based on their positions, contributions, the Company’s operating performance for the year and taking into account the Company’s future risks.

1. Compensation to the employees

Compensation to the employees includes monthly payment and unscheduled performance bonus, year-end bonus, and employee compensation based on the Company’s profitability. As stipulated in the Articles of Association, not less than 3% - 8% of the annual profit of the Company shall be used as the compensation to the employees.

• 62 -

In addition to setting competitive salary levels based on local labor market conditions, the Company’s (overseas) subsidiaries also provide annual bonuses to employees with reference to local laws and regulations, industry practices, and the overall operating performance of each subsidiary, in order to encourage employees to make long-term contributions and grow with the Company.

(XXVIII) Income tax

1. Income tax expense (benefit)

Income tax expenses for the years ended December 31, 2023 and 2022 are as follows:

follows:
Current income tax: Income tax generated in current year Adjustment on income tax of prior years Deferred income tax Deferred tax expense (benefit) related to the generation and reversal of temporary differences Income tax expense (benefit)	2023 $ 79,616 (4,073) (30,750) $ 44,793	2022
		$ 75,692 735 34,074
		$ 110,501

(1) The components of income tax expense recognized in profit or loss for the years ended December 31, 2023 and 2022 are as follows:

Net profit before tax Tax amount calculated by applying statutory rate to net profit before tax Influenced tax amount of adjusted items: Impacts of items not included for calculation of taxable income Impact of different tax rates applied to parent-subsidiary companies Income tax reduction Tax on undistributed earnings Adjustment on income tax of prior years Net change in deferred income tax Temporary differences Income tax expense (benefit) recognized in profit or loss	2023 $ 235,099 $ 47,020 23,197 16,217 (14,662) 7,844 (4,073) (30,750) $ 44,793	2022
		$ 459,788
		$ 91,957 28,042 (27,560) (16,747) - 735 34,074
		$ 110,501

• 63 -

• (2) Income tax expenses (benefits) recognized under other comprehensive income are as follows:

income are as follows:
Items that will not be reclassified subsequently to profit or loss Remeasurement of defined benefit plan Items that may be reclassified subsequently to profit or loss Exchange difference on translation of financial statements of foreign operations	2023 $ (70) $ (3,648)	2022
		$ 659
		$ 4,631

1. Deferred tax assets and liabilities are classified as follows:

Deferred tax assets and liabilities are	classified as follows:	classified as follows:
Exceeding amount of allowance for uncollectible accounts Unrealized exchange losses Unrealized loss on market value decline and obsolete and slow-moving inventories Unrealized sales profit Unrealized attendance bonus Unrealized warranty expense Loss deduction Exceeding amount of pension and actuarial loss Exchange difference on translation of financial statements of foreign operations Investment tax credit - Resource-poor areas Others	Deferred tax assets
	December 31,2023 $ 2,423 - 97,724 5,867 1,587 767 19,349 1,382 10,950 - 59 $ 140,108	December 31,2022
		$ 3,285 (21,495) 82,583 6,765 1,309 1,054 18,625 1,785 7,302 - 70
		$ 101,283

• 64 -

Deferred income tax liabilities December 31,2023 December 31,2022 Unrealized exchange income or loss $ 4,165 $ 262 Share of profit or loss of subsidiaries, associates and joint ventures accounted for using equity method 112,666 111,962 $ 116,831 $ 112,224 2023 Opening balance Recognized in profit or loss Recognized in other comprehensive income Impacts of exchange rate Ending balance Temporary differences Exceeding amount of allowance for uncollectible accounts $ 3,285 $ (851) $ - $ (11) $ 2,423 Unrealized exchange losses (21,495) 21,495 - - - Unrealized loss on market value decline and obsolete and slow-moving inventories 82,583 15,376 - (235) 97,724 Unrealized sales profit 6,765 (898) - - 5,867 Unrealized attendance bonus 1,309 281 - (3) 1,587 Unrealized warranty expense 1,054 (287) - - 767 Loss deduction 18,625 724 - - 19,349 Exceeding amount of pension and actuarial loss 1,785 (473) 70 - 1,382 Exchange difference on translation of financial statements of foreign operations 7,302 - 3,648 - 10,950 Investment tax credit - Resource-poor areas - - - - - Others 70 (11) - - 59 Total deferred tax assets $ 101,283 $ 35,356 $ 3,718 $ (249)$ 140,108 Unrealized exchange income or loss $ 262 $ 3,903 $ - $ - $ 4,165 Share of profit or loss of subsidiaries, associates and joint ventures accounted for using equity method 111,962 704 - - 112,666 Total deferred income tax liabilities $ 112,224 $ 4,607 $ - $ - $ 116,831	Deferred income tax liabilities December 31,2023 December 31,2022 Unrealized exchange income or loss $ 4,165 $ 262 Share of profit or loss of subsidiaries, associates and joint ventures accounted for using equity method 112,666 111,962 $ 116,831 $ 112,224 2023 Opening balance Recognized in profit or loss Recognized in other comprehensive income Impacts of exchange rate Ending balance Temporary differences Exceeding amount of allowance for uncollectible accounts $ 3,285 $ (851) $ - $ (11) $ 2,423 Unrealized exchange losses (21,495) 21,495 - - - Unrealized loss on market value decline and obsolete and slow-moving inventories 82,583 15,376 - (235) 97,724 Unrealized sales profit 6,765 (898) - - 5,867 Unrealized attendance bonus 1,309 281 - (3) 1,587 Unrealized warranty expense 1,054 (287) - - 767 Loss deduction 18,625 724 - - 19,349 Exceeding amount of pension and actuarial loss 1,785 (473) 70 - 1,382 Exchange difference on translation of financial statements of foreign operations 7,302 - 3,648 - 10,950 Investment tax credit - Resource-poor areas - - - - - Others 70 (11) - - 59 Total deferred tax assets $ 101,283 $ 35,356 $ 3,718 $ (249)$ 140,108 Unrealized exchange income or loss $ 262 $ 3,903 $ - $ - $ 4,165 Share of profit or loss of subsidiaries, associates and joint ventures accounted for using equity method 111,962 704 - - 112,666 Total deferred income tax liabilities $ 112,224 $ 4,607 $ - $ - $ 116,831	Deferred income tax liabilities December 31,2023 December 31,2022 Unrealized exchange income or loss $ 4,165 $ 262 Share of profit or loss of subsidiaries, associates and joint ventures accounted for using equity method 112,666 111,962 $ 116,831 $ 112,224 2023 Opening balance Recognized in profit or loss Recognized in other comprehensive income Impacts of exchange rate Ending balance Temporary differences Exceeding amount of allowance for uncollectible accounts $ 3,285 $ (851) $ - $ (11) $ 2,423 Unrealized exchange losses (21,495) 21,495 - - - Unrealized loss on market value decline and obsolete and slow-moving inventories 82,583 15,376 - (235) 97,724 Unrealized sales profit 6,765 (898) - - 5,867 Unrealized attendance bonus 1,309 281 - (3) 1,587 Unrealized warranty expense 1,054 (287) - - 767 Loss deduction 18,625 724 - - 19,349 Exceeding amount of pension and actuarial loss 1,785 (473) 70 - 1,382 Exchange difference on translation of financial statements of foreign operations 7,302 - 3,648 - 10,950 Investment tax credit - Resource-poor areas - - - - - Others 70 (11) - - 59 Total deferred tax assets $ 101,283 $ 35,356 $ 3,718 $ (249)$ 140,108 Unrealized exchange income or loss $ 262 $ 3,903 $ - $ - $ 4,165 Share of profit or loss of subsidiaries, associates and joint ventures accounted for using equity method 111,962 704 - - 112,666 Total deferred income tax liabilities $ 112,224 $ 4,607 $ - $ - $ 116,831	Deferred income tax liabilities December 31,2023 December 31,2022 Unrealized exchange income or loss $ 4,165 $ 262 Share of profit or loss of subsidiaries, associates and joint ventures accounted for using equity method 112,666 111,962 $ 116,831 $ 112,224 2023 Opening balance Recognized in profit or loss Recognized in other comprehensive income Impacts of exchange rate Ending balance Temporary differences Exceeding amount of allowance for uncollectible accounts $ 3,285 $ (851) $ - $ (11) $ 2,423 Unrealized exchange losses (21,495) 21,495 - - - Unrealized loss on market value decline and obsolete and slow-moving inventories 82,583 15,376 - (235) 97,724 Unrealized sales profit 6,765 (898) - - 5,867 Unrealized attendance bonus 1,309 281 - (3) 1,587 Unrealized warranty expense 1,054 (287) - - 767 Loss deduction 18,625 724 - - 19,349 Exceeding amount of pension and actuarial loss 1,785 (473) 70 - 1,382 Exchange difference on translation of financial statements of foreign operations 7,302 - 3,648 - 10,950 Investment tax credit - Resource-poor areas - - - - - Others 70 (11) - - 59 Total deferred tax assets $ 101,283 $ 35,356 $ 3,718 $ (249)$ 140,108 Unrealized exchange income or loss $ 262 $ 3,903 $ - $ - $ 4,165 Share of profit or loss of subsidiaries, associates and joint ventures accounted for using equity method 111,962 704 - - 112,666 Total deferred income tax liabilities $ 112,224 $ 4,607 $ - $ - $ 116,831	Deferred income tax liabilities December 31,2023 December 31,2022 Unrealized exchange income or loss $ 4,165 $ 262 Share of profit or loss of subsidiaries, associates and joint ventures accounted for using equity method 112,666 111,962 $ 116,831 $ 112,224 2023 Opening balance Recognized in profit or loss Recognized in other comprehensive income Impacts of exchange rate Ending balance Temporary differences Exceeding amount of allowance for uncollectible accounts $ 3,285 $ (851) $ - $ (11) $ 2,423 Unrealized exchange losses (21,495) 21,495 - - - Unrealized loss on market value decline and obsolete and slow-moving inventories 82,583 15,376 - (235) 97,724 Unrealized sales profit 6,765 (898) - - 5,867 Unrealized attendance bonus 1,309 281 - (3) 1,587 Unrealized warranty expense 1,054 (287) - - 767 Loss deduction 18,625 724 - - 19,349 Exceeding amount of pension and actuarial loss 1,785 (473) 70 - 1,382 Exchange difference on translation of financial statements of foreign operations 7,302 - 3,648 - 10,950 Investment tax credit - Resource-poor areas - - - - - Others 70 (11) - - 59 Total deferred tax assets $ 101,283 $ 35,356 $ 3,718 $ (249)$ 140,108 Unrealized exchange income or loss $ 262 $ 3,903 $ - $ - $ 4,165 Share of profit or loss of subsidiaries, associates and joint ventures accounted for using equity method 111,962 704 - - 112,666 Total deferred income tax liabilities $ 112,224 $ 4,607 $ - $ - $ 116,831	Deferred income tax liabilities December 31,2023 December 31,2022 Unrealized exchange income or loss $ 4,165 $ 262 Share of profit or loss of subsidiaries, associates and joint ventures accounted for using equity method 112,666 111,962 $ 116,831 $ 112,224 2023 Opening balance Recognized in profit or loss Recognized in other comprehensive income Impacts of exchange rate Ending balance Temporary differences Exceeding amount of allowance for uncollectible accounts $ 3,285 $ (851) $ - $ (11) $ 2,423 Unrealized exchange losses (21,495) 21,495 - - - Unrealized loss on market value decline and obsolete and slow-moving inventories 82,583 15,376 - (235) 97,724 Unrealized sales profit 6,765 (898) - - 5,867 Unrealized attendance bonus 1,309 281 - (3) 1,587 Unrealized warranty expense 1,054 (287) - - 767 Loss deduction 18,625 724 - - 19,349 Exceeding amount of pension and actuarial loss 1,785 (473) 70 - 1,382 Exchange difference on translation of financial statements of foreign operations 7,302 - 3,648 - 10,950 Investment tax credit - Resource-poor areas - - - - - Others 70 (11) - - 59 Total deferred tax assets $ 101,283 $ 35,356 $ 3,718 $ (249)$ 140,108 Unrealized exchange income or loss $ 262 $ 3,903 $ - $ - $ 4,165 Share of profit or loss of subsidiaries, associates and joint ventures accounted for using equity method 111,962 704 - - 112,666 Total deferred income tax liabilities $ 112,224 $ 4,607 $ - $ - $ 116,831
		$	4,165 112,666
		$	116,831
			Recognized in other comprehensive income
	$ (851) 21,495 15,376 (898) 281 (287) 724 (473) - - (11)		$ - - - - - - - 70 3,648 - -	$ (11) - (235) - (3) - - - - - -	$ 2,423 - 97,724 5,867 1,587 767 19,349 1,382 10,950 - 59
	$ 35,356		$ 3,718	$ (249)	$ 140,108
	$ 3,903 704		$ - -	$ - -	$ 4,165 112,666
	$ 4,607		$ -	$ -	$ 116,831

• 65 -

2022 Temporary differences Exceeding amount of allowance for uncollectible accounts Unrealized exchange losses Unrealized loss on market value decline and obsolete and slow-moving inventories Unrealized sales profit Unrealized attendance bonus Unrealized warranty expense Loss deduction Exceeding amount of pension and actuarial loss Exchange difference on translation of financial statements of foreign operations Investment tax credit - Resource-poor areas Others Total deferred tax assets Unrealized exchange income or loss Share of profit or loss of subsidiaries, associates and joint ventures accounted for using equity method Total deferred income tax liabilities	Opening balance	Recognized in profit or loss	Recognized in other comprehensive income	Impacts of exchange rate	Ending balance
	$ 8,734 8,580 74,935 5,784 1,522 871 18,977 2,544 11,933 14,250 80	$ (5,885) (30,075) 6,418 981 (219) 183 (352) (100) - (14,250) (10)	$ - - - - - - - (659) (4,631) - -	$ 436 - 1,230 - 6 - - - - - -	$ 3,285 (21,495) 82,583 6,765 1,309 1,054 18,625 1,785 7,302 - 70
	$ 148,210	$ (43,309)	$ (5,290)	$ 1,672	$ 101,283
	$ - 121,459	$ 262 (9,497)	$ - -	$ - -	$ 262 111,962
	$ 121,459	$ (9,235)	$ -	$ -	$ 112,224

3. Information on investment tax credit:

The Company chose to apply the investment tax credit to the research and development expenditures under Article 10, paragraph 1, subparagraph 1 of the Statute for Industrial Innovation, and offset the amount of income tax payable for the current year up to a limit of 15% of the amount of research and development expenditures declared in accordance with the relevant regulations.

• 66 -

The Company chose to apply the tax credit method to investment in intelligent machinery, fifth-generation mobile communication systems and information security products or services by corporations or limited partnerships, and offset the amount of income tax payable for the current year up to a limit of 5% of the amount of expenditures for information security products declared in accordance with the relevant regulations.

1. As of December 31, 2023, all of the estimated income tax credits under the Rules of the Statute for Upgrading Industries have been offset by the Company in the current year.

2. The Company’s business income tax returns for the year 2021 have been approved by the tax authority.

3. (XXIX) Earnings per share

(XXIX) Earnings per share
Basic earnings per share Profit attributable to ordinary shareholders of the parent company Diluted earnings per share Profit attributable to ordinary shareholders of the parent company Effect of potential dilutive common shares - Employees’ compensation Profit attributable to ordinary shareholders of the parent company plus effect of potential ordinary shares		2023
	Amount $ 210,811 $ 210,811 - $ 210,811	Weighted average number of ordinary shares outstanding (shares in thousands) Earnings per share (NT$) 96,594 $ 2.18 96,594 492 97,086 $ 2.17

• 67 -

Basic earnings per share Profit attributable to ordinary shareholders of the parent company Diluted earnings per share Profit attributable to ordinary shareholders of the parent company Effect of potential dilutive common shares - Employees’ compensation Profit attributable to ordinary shareholders of the parent company plus effect of potential ordinary shares		2022
	Amount $ 354,143 $ 354,143 - $ 354,143	Weighted average number of ordinary shares outstanding (shares in thousands) Earnings per share (NT$) 96,594 $ 3.67 96,594 516 97,110 $ 3.65

If the Company chooses to issue stock or cash as compensation to employees, for compensation to be paid by issuance of shares, the potential common shares shall be included in the weighted average number of outstanding shares when such shares have a dilutive effect for the purpose of calculating diluted earnings per share. In calculating the diluted earnings per share, the number of shares to be issued is based on the net value of the potential common share on the balance sheet date. The dilutive effect of such potential common shares shall continue to be taken into account in calculating the diluted earnings per share until the number of shares to be issued as employees’ compensation is resolved at the shareholders’ meeting in the following year.

(XXX) Capital management

Based on the current industry characteristics of the business and the future development of the Company, as well as changes in the external environment and other factors, the Company plans for its working capital and dividend expense requirements in the future, so as to ensure that the Company can continue its operations, reward its shareholders and take into account the interests of other

• 68 -

stakeholders, and maintain an optimal capital structure to enhance shareholders’ value in the long term.

The Company’s management reviews its capital structure on a regular basis and considers the costs and risks that may be associated with the above capital structure. In general, the Company adopts a prudent risk management strategy.

(XXXI) Supplemental cash flow information

Investing activities with partial cash payments:

Purchase of property, plant and equipment Add: Opening payables on equipment and construction Interest capitalization Less: Ending payables on equipment and construction Cash paid during the year	2023 $ 49,476 2,378 - (212) $ 51,642	2022
		$ 20,949 3,769 - (2,378)
		$ 22,340

VII. Related Party Transactions

• (I) Parent Company and the ultimate controlling party

Goodway Machine Corp. is the ultimate controlling party of the Group to which the Company belongs.

• (II) Names of related parties and relationship

Names of related parties and relationship
Relatedpartyname Goodway Machine Corp. YAMA SEIKI USA,INC. Goodway Machine Corp. (Wujiang) Huahan Leasing Co., Ltd. Allrich Cnc, Ltd. Hung Jiu Machine Co., Ltd. Turvo International Co., Ltd. Boldwin Bio Co., Ltd.	Relationshipwith the Company
	Ultimate parent company Associates Associates Associates Substantive related party Substantive related party Other related parties Other related parties

(III) Significant transactions with the related parties

The transactions between AWEA and its subsidiaries, account balances, revenues and expenses have been eliminated upon consolidation and are therefore not disclosed in this note. The details of the transactions between AWEA and other related parties are summarized as follows:

• 69 -

1. Sales

Sales
Parent company Associates Yama Seiki Others Other related parties	2023 $ 8,705 299,505 75,585 93 $ 383,888	2022
		$ 1,396 240,190 56,017 1
		$ 297,604

The Company sells products of different specifications to related parties, and has no

other customers to compare with. The collection terms for the Company’s sales to related parties and general customers are based on the contracts.

1. Purchases

Purchases
Parent company Associates Substantive related party Other related parties	2023 $ 1,221 6,633 4,204 34 $ 12,092	2022
		$ 396 247 3,573 -
		$ 4,216

The transaction prices of the Company’s purchases from related parties are similar to those of general transactions.

1. Notes receivable, net

3. Notes receivable, net
Parent company Associates Other related parties 4. Accounts receivable, net Parent company Associates Yama Seiki Others Other related parties	December 31,2023 $ 852 - 6 $ 858 December 31,2023 $ 10 43,474 222 35 $ 43,741	December 31,2022
		$ 1,030 3,244 -
		$ 4,274
		December 31,2022
		$ 170 33,396 - -
		$ 33,566

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5. Notes payable Parent company Substantive related party Other related parties 6. Accounts payable Parent company Substantive related party 7. Other payables Parent company Associates Other related parties 8. Prepayments Parent company Other related parties 9. Advance receipts Parent company Associates 10. Current lease liabilities Parent company 11. Non-current lease liabilities Parent company	December 31,2023 $ 267 263 36 $ 566 December 31,2023 $ 129 221 $ 350 December 31,2023 $ 1,042 281 16 $ 1,339 December 31,2023 $ 26 - $ 26 December 31,2023 $ 190 - $ 190 December 31,2023 $ 499 December 31,2023 $ -	December 31,2022
		$ 146 368 -
		$ 514
		December 31,2022
		$ 40 759
		$ 799
		December 31,2022
		$ 1,178 819 10
		$ 2,007
		December 31,2022
		$ 29 48
		$ 77
		December 31,2022
		$ 1,045 9,550
		$ 10,595
		December 31,2022
		$ 1,190
		December 31,2022
		$ 499

• 71 -

12. Property transaction

Disposal of property, plant and equipment

Disposal of property,	plant and equipment	plant and equipment	plant and equipment
Parent company Parent company 13. Leases Rental income Parent company Other related parties Rent expense Parent company 14. Others Other income Parent company Associates - Yama Seiki Manufacturing expenses Parent company Associates Substantive related party Other related parties	2023 Items Proceeds Gain on disposal - $ - $ - 2022 Items Proceeds Gain on disposal Machinery equipment $ 23 $ 8 2023 2022 $ 1,146 $ 1,110 43 - 1,189 1,110 2023 2022 $ 120 $ 120 2023 2022 $ 369 $ 461 16,970 84 $ 17,339 $ 545 2023 2022 $ 715 $ 770 475 7 2,610 - 38 66 $ 3,838 $ 843
		$	1,110 -
			1,110
			2022
		$	120
			2022
		$	461 84
		$	545
			2022
		$	770 7 - 66
		$	843

• 72 -

Selling and marketing

Selling and marketing
expenses Parent company Associates Other related parties General and administrative expenses Parent company Associates	2023 $ 2,430 7 70 $ 2,507 2023 $ 3 4,059 $ 4,062	2022
		$ 2,392 10 77
		$ 2,479
		2022
		$ 44 5,691
		$ 5,735

1. Information on main management rewards

Short-term employee benefits Post-employment benefits	2023 $ 9,379 279 $ 9,658	2022
		$ 15,382 400
		$ 15,782

Compensation for key management personnel is determined by the Remuneration Committee based on individual performance and the Company’s operating results.

VIII. Pledged Assets

The Company’s assets pledged as collaterals are summarized as follows:

The Company’s assets pledged as collaterals are	summarized as follows:
Name of asset Property, plant and equipment - land Property, plant and equipment - property and building Other current assets - restricted bank deposit Right-of -use asset - land-use right Financial assets measured at amortized cost - pledged time deposits	December 31,2023 $ 377,341 718,383 - 89,038 10,137 $ 1,194,899	December 31,2022
		$ 377,341 754,425 188,170 94,032 -
		$ 1,413,968

The financial assets measured at amortized cost are performance security guarantees in the deposit pledge provided by Awea Company to rent the land of Central Taiwan Science Park.

• 73 -

IX. Significant Contingent Liabilities and Unrecognized Contract Commitments The Company’s commitments and contingencies as of December 31, 2023 include:

• (I) The amount of guaranteed bills issued by the Company was NT$2,786 thousand.

• (II) The amount of guaranteed bills collected by the Company from the customers was NT$69,866 thousand.

• (III) The amount of guaranteed bills collected by the Company from the manufacturers due to solar photovoltaic lease was NT$ 21,180 thousand.

• (IV) The amount of guaranteed bills received by the Company for the construction of Dapumei Plant Phase II was NT$21,780 thousand.

• (V) The amount of the loan guarantee notes collected by Company from the subsidiary - Yih Chuan Company were NT$ 70,000 thousand.

• (VI) In order to guarantee the release of imported goods before paying tax to the Customs Administration, the Company has entrusted the First Bank to issue a guarantee letter at the amount of NT$2,000 thousand.

• X. Significant Disaster Loss: None.

• XI. Significant Events after the Balance Sheet Date: None.

XII. Others

Financial instruments

• (I) Information on fair value of financial instruments

The carrying amounts of the Company’s financial instruments not measured at fair value, including cash equivalents, notes receivable, accounts receivable, other receivables, refundable deposits, short-term borrowings, short-term notes and bills payable, notes payable, accounts payable, other payables, bonds payable, long-term borrowings, and guarantee deposits received, are the reasonable approximates of their fair values. The interest rates of bonds payable (including those due within one year or under repurchase rights) and long-term loans (including those due within one year) approximate market interest rates; therefore, the carrying amounts should be a reasonable basis for approximation of fair values. For information on the fair value of financial instruments measured at fair value, please refer to Note XII (VI).

• 74 -

• (II) Financial risk management objectives

The objectives of the Company’s financial risk management are to manage the market risk (foreign currency exchange rate risk and interest rate risk), credit risk and liquidity risk associated with its operating activities. In order to reduce relevant financial risks, the Company is committed to identifying, evaluating and avoiding market uncertainties, so as to reduce the potential adverse impact of market changes on the Company’s financial performance.

Significant financial activities of the Company are reviewed by the Board of Directors in accordance with relevant norms and internal control systems. During the execution period of the financial plan, the Company must comply with the relevant financial operating procedures regarding the overall financial risk management and the division of rights and responsibilities.

• (III) Market risks

The Company is primarily exposed to market risks arising from changes in foreign currency exchange rates and interest rates, and uses certain derivative financial instruments to manage the related risks.

1. Foreign currency exchange rate risk

2. Some of the Company’s cash inflows and outflows are in foreign currencies, which has a partially natural hedging effect; the Company’s exchange rate risk management is for hedging purpose, other than for profit purpose.

The exchange rate risk management strategy is to periodically review net parts of the assets and liabilities in various currencies, and make risk management of such parts.

• 75 -

The carrying amounts of the Company’s foreign-currency-denominated monetary assets and monetary liabilities at the end of the reporting period are summarized below:

Unit: Foreign currency/ NT$ thousand

			Unit: Foreign currency/ NT$ thousand	Unit: Foreign currency/ NT$ thousand	Unit: Foreign currency/ NT$ thousand	Unit: Foreign currency/ NT$ thousand
Financial assets Monetary items USD EUR CNY AUD Non-monetary items USD Financial liabilities Monetary items USD JPY CNY Non-monetary items USD EUR Financial assets Monetary items USD EUR CNY AUD Non-monetary items USD Financial liabilities Monetary items USD JPY CNY Non-monetary items USD			December31,2023
	Foreign currencies 28,189 5,354 29,309 1 - 338 6,602 35 835 1	Exchange rate (Note) 30.655 33.78 4.302 20.88 - 30.655 0.2152 4.302 30.655 33.78	Sensitivityanalysis NTD Rate of change Profit and loss impact Equity impact 864,134 5% 43,207 - 180,858 5% 9,043 - 126,087 5% 6,304 - 21 5% 1 - - - - - 10,361 5% 518 - 1,421 5% 71 - 151 5% 8 - 25,597 - - - 34 - - - Unit: Foreign currency/ NT$ thousand December 31,2022	Sensitivityanalysis
						Equity impact
	Foreign currencies 57,809 3,014 8,906 1 - 150 2,869 90 1,551	Exchange rate (Note) 30.66 32.52 4.383 20.73 - 30.66 0.2304 4.383 30.66	NTD 1,772,424 98,015 39,035 21 - 4,599 661 394 47,554	Sensitivityanalysis
				Rate of change 5% 5% 5% 5% - 5% 5% 5% -	Profit and loss impact 88,621 4,901 1,952 1 - 230 33 20 -	Equity impact
						- - - - - - - - -

(Note) Based on the exchange rate at the end of the reporting period.

• 76 -

• Interest rate risk

Interest rate risk is the risk of changes in fair value of financial instruments due to changes in market interest rates. The Company’s interest rate risk arises mainly from borrowings at variable interest rates.

If the borrowings at floating rate at the end of the reporting period are held for the entire reporting period, a 1% increase in interest rates would result in a decrease in net income before tax of NT$16,568 thousand.

1. Other price risk

The price risk of the Company’s equity instrument investments arises mainly from the financial asset investments classified as measured at fair value through profit or loss.

If the price of equity instruments at the end of the reporting period decreases by 10%, the Company’s income would decrease by NT$53,892 thousand and NT$38,746 thousand in 2023 and 2022, respectively.

• (IV) Credit risk management

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial losses to the Company. The Company’s credit risk mainly comes from receivables arising from operating activities and bank deposits arising from investment activities. The operation-related credit risks and the financial credit risks are under separate management.

1. Operation-related credit risks

In order to maintain quality of accounts receivable, the Company has established the procedure for management of operation-related credit risks. According to the Company’s credit policy, the Company is responsible for managing and analyzing the credit risk for each new customer. Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors.

The risk assessment of individual customers takes into account many factors that may affect the customers’ ability to pay, including the customers’ financial position, ratings of credit rating agency, the Company’s internal credit rating, historical transaction records and current economic conditions, etc. The Company also

• 77 -

utilizes certain credit enhancement tools, such as credit insurance, when appropriate, to minimize the credit risk of specific customers.

As of December 31, 2023 and 2022, the balance of accounts receivable of the top ten customers accounted for 69% and 60% of the Company’s balance of accounted receivable respectively, and the credit concentration risk of the remaining accounts receivable was relatively insignificant.

1. Financial credit risk

The credit risk of bank deposits is measured and monitored by the financial departments of the Company. As the Company’s trading partners and performing parties are banks with good credit and financial institutions, corporate organizations and government agencies with investment grade or above, without significant concern about performance of the contract, therefore, there is no significant credit risk.

(V) Liquidity risk

The Company’s objective in managing liquidity risk is to maintain cash and cash equivalents and sufficient bank facilities required for maintaining operations, so as to ensure sufficient financial resilience of the Company.

The following table summarizes the financial liabilities of the Company during the agreed repayment period by maturity date and undiscounted maturity amount:

Non-derivative financial liabilities Short-term borrowings Short-term notes and bills payable Notes payable (including related parties) Accounts payable (including related parties) Other payables (including related parties) Provisions Lease liabilities (including related parties) Guarantee deposits received		December 31,2023	December 31,2023	December 31,2023
	1 to 3 months $ 1,229,530 79,987 204,818 165,202 113,517 12,935 334 1,911 $ 1,808,234	4 to 6 months $ 185,000 - 57,929 42 - - 235 - $ 243,206	7 to 12 months $ 162,322 - - 137 - - 69 - $ 162,528	Over 1years $ - - - 239 - - 280 - $ 519	Total
					$ 1,576,852 79,987 262,747 165,620 113,517 12,935 918 1,911
					$ 2,214,487

• 78 -

Non-derivative financial liabilities Short-term borrowings Short-term notes and bills payable Notes payable (including related parties) Accounts payable (including related parties) Other payables (including related parties) Provisions Lease liabilities (including related parties) Guarantee deposits received		December 31,2022	December 31,2022	December 31,2022
	1 to 3 months $ 1,556,298 289,641 315,393 200,289 130,896 12,445 2,845 2,183 $ 2,509,990	4 to 6 months $ 256,038 - 78,970 282 - - 2,851 - $ 338,141	7 to 12 months $ 142,613 - - 234 - - 5,724 - $ 148,571	Over 1years $ - - - 1,306 - - 918 - $ 2,224	Total
					$ 1,954,949 289,641 394,363 202,111 130,896 12,445 12,338 2,183
					$ 2,998,926

• (VI) Fair value

• For information on the fair value of the Company’s financial instruments not measured at fair value, please refer to Note 12, (1).

• 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:

  • (1) Level 1: The inputs to this level are publicly quoted prices (unadjusted) in active markets for identical assets or liabilities. Active market means a market that meets all of the following conditions: the products traded in the market are homogeneous; willing buyers and sellers are readily available in the market, and the price information is readily available to the public.

  • (2) Level 2: the input values of this level are observable prices other than publicly quoted prices in Level 1, including direct (such as prices) or indirect (such as derived from prices) observable input values obtained from the active market.

  • (3) Level 3: the input values of this level are not inputs for assets or liabilities that are based on observable market data.

    • For the years ended December 31, 2023 and 2022, the Company had no transfer between Level 1 and Level 2.

    • For the years ended December 31, 2023 and 2022, the Company had no transfer into or out from Level 3.

• 79 -

• The methods and assumptions the Company used to measure fair value are as follows:

• (1) The fair values of financial assets and financial liabilities with standard terms and conditions and traded in active markets are determined by reference to quoted market prices.

• (2) The fair values of other financial liabilities are determined using generally accepted valuation models based on discounted cash flow analysis.

• Fair value hierarchy

The fair value hierarchy of the Company’s financial assets measured at fair value is as follows:

	December 31, 2023
Level 1 $ 536,929 1,991 $ 538,920	Level 2 Level 3 $ - $ - - - $ - $ - December 31, 2022	Total
		$ 536,929 1,991
		$ 538,920
		Total
		$ 377,002 10,458

XIII. Additional Disclosures

• (I) Significant transactions information

• Loaning funds to others: Refer to Table 1.

• Provision of endorsements and guarantees to others: None.

• Holding of marketable securities at the end of the period (not including investment in subsidiaries, associates and joint ventures): Refer to Table 2.

• Acquisition or sale of the same security with the accumulated cost exceeding

• 80 -

NT$300 million or 20% of the Company’s paid-in capital: None.

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

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

3. Purchases or sales of goods from or to related parties reaching NT$100 million or 20% of paid-in capital or more: Refer to Table 3.

4. Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital: None;

5. Derivative transactions: Please refer to Note 12 for details.

6. The business relationship between the parent and the subsidiaries and significant transactions between them: Refer to Table 4.

7. (II) Information on investees: Refer to Table 5.

8. (III) Information on Investment in Mainland China: Refer to Table 6.

9. (IV) Information on major shareholders: Refer to Table 7.

10. 81 -

Table 1: Loaning Funds to Others

December 31, 2023

Unit: NT$ thousand (unless stated otherwise)

No. (Note 1)	Companies loaning fund	Companies that fund is loaned to	Transaction items	Related party	Maximum amount of the current period (Note 3)	Ending balance (Note 4)	Amount drawn	Interest rate	Type of loans	Amount of transaction	Cause for necessity of short-term financing	Amount of allowance for uncollectible accounts	Collateral	Collateral	Loaning limit to individual objects (Note 2)	Total loaning limit to others (Note 2)
													Name	Value
0	AWEA Mechantronic Co., Ltd.	Yih Chuan Machinery Industry Co., Ltd.	Other receivables - related parties	Yes	150,000	70,000	60,000	2.05%	With necessity of short-term financing	140	Operating turnover	-	Promissory note	70,000	329,385	1,317,541
1	Shanghai Zhuwai Mechanical and Electrical Co.,Ltd.	Awea Mechantronic (Suzhou) Ltd.	Other receivables - related parties	Yes	107,930 (CNY 25,000)	107,930 (CNY 25,000)	43,020	3.45% ~ 3.55%	With necessity of short-term financing	-	Operating turnover	-	-	-	150,752	150,752
1	Shanghai Zhuwai Mechanical and Electrical Co.,Ltd.	Yih Chuan Machinery (Jiaxing) Industry Co., Ltd.	Other receivables - related parties	Yes	29,216 (CNY 6,700)	21,765 (CNY 5,000)	-	3.45%	With necessity of short-term financing	-	Operating turnover	-	-	-	150,752	150,752

Note 1: The explanation for the numbering column is as follows:

(1) Fill in 0 for issuer.

(2) The investees are coded sequentially beginning from “1” by each individual company.

Note 2: The loaning limit to individual objects shall not exceed 10% of their net value of the current period, and the total loaning limit shall not exceed 40% of their net value of the current period. Note 3: The maximum balance of loaning funds to others of the current year.

Note 4: It is the loaning limit approved by the Board of Directors.

• 82 -

Table 2: Holding of Marketable Securities at the End of the Period (Not Including Investment in Subsidiaries, Associates and Joint Ventures)

December 31, 2023					Unit: NT$ thousand (unless stated otherwise)	Unit: NT$ thousand (unless stated otherwise)	Unit: NT$ thousand (unless stated otherwise)	Unit: NT$ thousand (unless stated otherwise)
Held company name	Marketable securities type and name	Relationship with the company	Financial statement account		December31,2023			Remark
				Number of shares	Carrying amount	Ownership (%)	Fair value (Note 1)
AWEA Mechantronic Co.,Ltd.	Stock- AUTECH EUROPE	-	Financial assets at FVTPL - non-current	50	- (Note 2)	5.00%	-
AWEA Mechantronic Co.,Ltd.	Stock- P-Duke Technology Co.,Ltd.	-	Financial assets at FVTPL - current	1,063,852	102,555	1.29%	102,555
AWEA Mechantronic Co.,Ltd.	Stock- Turvo International Co.,Ltd.	Other related parties	Financial assets at FVTPL - current	2,873,000	399,347	4.77%	399,347
AWEA Mechantronic Co.,Ltd.	Stock- Eagle Cold Storage EnterpriseCo.,Ltd.	-	Financial assets at FVTPL - current	968,000	29,040	0.81%	29,040
AWEA Mechantronic Co., Ltd.	Stock- Taiwan Semiconductor Manufacturing Company Limited	-	Financial assets at FVTPL - current	10,000	5,930	-	5,930
AWEA Mechantronic Co.,Ltd.	Stock- Zeng Hsing IndustrialCo.,Ltd.	-	Financial assets at FVTPL - current	534	57	-	57
AWEA Mechantronic Co.,Ltd.	Stock- Fittech Co., Ltd.	-	Financial assets at FVOCI - non-current	29,846	1,991	0.04%	1,991

Note 1: If the investee company does not have a quoted market price, the net equity value shall be presented.

Note 2: In 1996, due to value impairment and little hope of recovery of the investee companies, all were recognized as losses.

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Table 3: Purchases or Sales of Goods from or to Related Parties Reaching NT$100 Million or 20% of Paid-in Capital or More

December 31, 2023	December 31, 2023								Unit: NT$ thousand (unless stated otherwise)	Unit: NT$ thousand (unless stated otherwise)	Unit: NT$ thousand (unless stated otherwise)
Company name	Counterparty	Relationship		Transaction details			Abnormal transaction (Note 1)		Notes/ accounts payable or receivable		Remark
			Purchases / sales	Amount	% to Total	Payment terms	Unit price	Payment terms	Ending balance	% to total notes and accounts receivable (payable)
AWEA Mechantronic Co.,Ltd.	Awea Mechantronic (Suzhou)Ltd.	Subsidiaries under sub- subsidiaries	Sales	$ 255,365	16.24%	3 months after shipped	-	-	$ 78,173	16.07%	-
AWEA Mechantronic Co.,Ltd.	Yama Seiki USA, Inc.	Subsidiaries	Sales	$ 299,505	19.05%	3 months after shipped	-	-	$ 43,474	8.94%	-

Note 1: Since the products sold by the Company to its related parties AWEA Suzhou and Yama Seiki have different features, there are no other customers available for

comparison; in addition, its collection terms and the collection terms for general customers are determined by contract.

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Table 4: The Business Relationship Between the Parent and the Subsidiaries and Significant Transactions Between Them

December 31, 2023 Unit: NT$ thousand (unless stated otherwise)

No. (Note 1)	Company name	Counterparty	Relationship to the counterparty (Note 2)		Terms	Terms
				Account	Amount	Terms	% to total consolidated revenue or assets(Note 4)
0	AWEA Mechantronic Co.,Ltd.	Yih Chuan Machinery IndustryCo.,Ltd.	1	Sales revenue	140	(Note 3)	-
0	AWEA Mechantronic Co.,Ltd.	Yih Chuan Machinery IndustryCo.,Ltd.	1	Incoming goods (materials)	11,872	(Note 3)	0.5%
0	AWEA Mechantronic Co.,Ltd.	Yih Chuan Machinery IndustryCo.,Ltd.	1	Account receivables	30	(Note 3)	-
0	AWEA Mechantronic Co.,Ltd.	Yih Chuan Machinery IndustryCo.,Ltd.	1	Other receivables	61,626	(Note 3)	1.0%
0	AWEA Mechantronic Co.,Ltd.	Yih Chuan Machinery IndustryCo.,Ltd.	1	Notes payable	1,821	(Note 3)	-
0	AWEA Mechantronic Co.,Ltd.	Yih Chuan Machinery IndustryCo.,Ltd.	1	Accounts payable	1,209	(Note 3)	-
0	AWEA Mechantronic Co.,Ltd.	Yih Chuan Machinery IndustryCo.,Ltd.	1	Interest income	1,423	(Note 3)	0.1%
0	AWEA Mechantronic Co.,Ltd.	Yih Chuan Machinery IndustryCo.,Ltd.	1	Operating cost - after-sales service expenses	85	(Note 3)	-
0	AWEA Mechantronic Co.,Ltd.	Yih Chuan Machinery IndustryCo.,Ltd.	1	Other non-operating income	1,514	(Note 3)	0.1%
0	AWEA Mechantronic Co.,Ltd.	Awea Mechantronic (Suzhou)Ltd.	1	Sales revenue	255,365	(Note 3)	10.8%
0	AWEA Mechantronic Co.,Ltd.	Awea Mechantronic (Suzhou)Ltd.	1	Purchases	202	(Note 3)	-
0	AWEA Mechantronic Co.,Ltd.	Awea Mechantronic (Suzhou)Ltd.	1	Account receivables	78,173	(Note 3)	1.3%
0	AWEA Mechantronic Co.,Ltd.	Awea Mechantronic (Suzhou)Ltd.	1	Other payables	151	(Note 3)	-
0	AWEA Mechantronic Co.,Ltd.	Awea Mechantronic (Suzhou)Ltd.	1	Manufacturing - repairs and maintenance expense	234	(Note 3)	-
0	AWEA Mechantronic Co.,Ltd.	Awea Mechantronic (Suzhou)Ltd.	1	Sales - warranty expenses	201	(Note 3)	-
0	AWEA Mechantronic Co., Ltd.	Yih Chuan Machinery (Jiaxing) Industry Co.,Ltd.	1	Sales revenue	19	(Note 3)	-

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No. (Note 1)	Company name	Counterparty	Relationship to the counterparty (Note 2)		Terms	Terms
				Account	Amount	Terms	% to total consolidated revenue or assets(Note 4)
1	Awea Mechantronic (Suzhou) Ltd.	Shanghai Zhuwai Mechanical and Electrical Co.,Ltd.	3	Other payables	43,020	(Note 3)	0.7%
1	Awea Mechantronic (Suzhou) Ltd.	Shanghai Zhuwai Mechanical and Electrical Co.,Ltd.	3	Finance costs - interest expense	2,383	(Note 3)	0.1%
1	Awea Mechantronic (Suzhou) Ltd.	Yih Chuan Machinery (Jiaxing) Industry Co.,Ltd.	3	Sales revenue	1	(Note 3)	-
2	Yih Chuan Machinery Industry Co., Ltd.	Yih Chuan Machinery (Jiaxing) Industry Co.,Ltd.	3	Account receivables	1,256	(Note 3)	-
2	Yih Chuan Machinery Industry Co., Ltd.	Yih Chuan Machinery (Jiaxing) Industry Co.,Ltd.	3	Sales revenue	1,282	(Note 3)	0.1%
3	Shanghai Zhuwai Mechanical and Electrical Co.,Ltd.	Yih Chuan Machinery (Jiaxing) Industry Co.,Ltd.	3	Interest income	308	(Note 3)	-

Note 1: The business transactions between the parent company and the subsidiaries shall be indicated in the numbering column respectively, and the number shall be filled in as follows: 1. Parent company is No. 0.

1. Subsidiaries are listed in order from No.1.

Note 2: In case of any of the following three relationships with the traders, it only needs to indicate the relationship type:

1. Parent to subsidiary.

2. Subsidiary to parent.

3. Subsidiary to subsidiary.

Note 3: It is subject to stipulations in contract.

Note 4: The Company will decide on the presentation of the significant transactions in this table in accordance with the principle of materiality.

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Table 5: Names, Locations and Other Information of Investee Companies (Not Including Investees in Mainland China)

December 31, 2023 Unit: NT$/ Foreign currency thousand (unless stated otherwise)

Investor company	Investee company	Location	Main business activities	Initial investment amount	Initial investment amount	Held at the end ofperiod	Held at the end ofperiod	Held at the end ofperiod	Current profit (loss) of the invested company	Recognized investment gains (losses) in the current period (Note 1)	Remark
				December 31, 2023	December 31, 2022	Number of shares	Ownership (%)	Carrying amount
AWEA Mechantronic Co., Ltd. AWEA Mechantronic Co., Ltd. AWEA Mechantronic Co., Ltd. AWEA Mechantronic Co., Ltd. B-Way (Cayman) Co., Ltd.	B-Way (Cayman) Co., Ltd. Yama Seiki USA, Inc. Yih Chuan Machinery Industry Co., Ltd. Huahan Leasing Co., Ltd. Billion-Way (Cayman) Co., Ltd.	Cayman Islands USA Taiwan Taiwan Cayman Islands	International investment and international trade Machinery sales and installation, international trade Manufacturing of machinery and equipment, design of products, wholesale of machinery, and retail of mechanical appliances Rental of machinery and equipment International investment and international trade	$ 332,212 53,968 264,592 7,333 USD 12,830 (NTD 393,304)	$ 332,212 53,968 264,592 7,333 USD 12,830 (NTD 393,304)	10,665,029 584,192 5,914,800 666,667 12,829,840	100.00% 28.58% 60.00% 13.33% 100.00%	$ 694,302 108,435 141,254 8,278 706,493	$ 57,841 24,042 (51,263) 2,080 58,052	$ 57,652 6,901 (30,757) 277 58,052	(Note 1) - (Note 1) - (Note 1)

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Investor company	Investee company	Location	Main business activities	Initial investment amount	Initial investment amount	Held at the end ofperiod	Held at the end ofperiod	Held at the end ofperiod	Current profit (loss) of the invested company	Recognized investment gains (losses) in the current period (Note 1)	Remark
				December 31, 2023	December 31, 2022	Number of shares	Ownership (%)	Carrying amount
Yih Chuan Machinery Industry Co., Ltd. AXTRON INT’L INVESTMENT CO.,LTD	AXTRON INT’L INVESTMENT CO., LTD AXTRON INT’L INVESTMENT LIMITED	USA - Marshall Islands Hong Kong	International investment and international trade International investment and international trade	200,000 HKD 10 (NTD 39)	200,000 HKD 10 (NTD 39)	50,000 10,000	100.00% 100.00%	205,164 205,163	(21,254) (21,254)	(21,254) (21,254)	(Note 1) (Note 1)

Note 1: It has been written off.

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Table 6: Information on Investments in Mainland China

December 31, 2023

Unit: NT$ thousand (unless stated otherwise)

1. Name of the investee company in Mainland China, main business items, paid-in capital, method of investment, inward/outward remittance of funds, percentage of ownership, carrying value of investment, and gain or loss on repatriated investment:

Name of investee	Main business activities	Paid-in capital	Investment method (Note 1)	Accumulated investment amount remitted from Taiwan at the beginning of the period	Amount remitted from Taiwan to Mainland China/ Amount remitted back to Taiwan for currentperiod	Amount remitted from Taiwan to Mainland China/ Amount remitted back to Taiwan for currentperiod	Accumulated investment amount remitted from Taiwan at the end of the period	Current profit and loss of the invested company	Ownership percentage of direct or indirect investment	Recognized investment gains and losses in the current period (Note 2)	Carrying amount of investment as of December 31, 2023	Accumulated inward remittance of earnings as of December 31, 2023
					Outflow	Inflow
Shanghai Zhuwai Mechanical and Electrical Co., Ltd.	Machinery sales and installation, business management consultation, and international trade	USD 2,500 (NTD 76,638) (Note 3)	2	USD 2,494 (NTD 76,454) (Note 3)	-	-	USD 2,494 (NTD 76,454) (Note 3)	$ 7,597	100%	$ 8,116	$148,859	USD 15,438 (NTD 479,279) (Note 3)
Awea Mechantronic (Suzhou) Ltd.	Machinery sales, manufacturing and installation, and international trade	USD 11,400 (NTD 349,467) (Note 3)	2	USD 10,400 (NTD 318,812) (Note 3)	-	-	USD 10,400 (NTD 318,812) (Note 3)	58,604	100%	58,604	544,304	USD 4,706 CNY 49,580 (NTD 362,259)
Yih Chuan Machinery (Jiaxing) Industry Co., Ltd.	Machinery sales, manufacturing and installation, and international trade	USD 2,510 (NTD 76,944) (Note 3)	2	USD 2,510 (NTD 76,944) (Note 3)	-	-	USD 2,510 (NTD 76,944) (Note 3)	(21,254)	100%	(21,254)	205,163	-

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2. Limit on investments in Mainland China:	2. Limit on investments in Mainland China:
Name of investor	Accumulated investment amount remitted from Taiwan to Mainland China at the end of theperiod	Investment amounts authorized by Investment Review Committee, MOEA	Limit on investments in Mainland China imposed by the Investment Review Committee,MOEA
The Company	$ 395,266 (Note 3) (USD 12,894)	$ 426,105 (Note 3) (USD 13,900)	$ 1,976,311 (Note 5)
Yih Chuan Machinery IndustryCo.,Ltd.	$ 76,944 (Note 3) (USD 2,510)	$ 76,944 (Note 3) (USD 2,510)	$ 140,612 (Note 5)

Note 1: Investment methods are divided into the following three types, just enter the code:

• (1) Direct investment in Mainland China.

• (2) Indirect investment in Mainland China through third-region companies.

• (3) Other methods.

• Note 2: The basis for recognition of investment gains and losses is the financial statements audited by CPAs for the same period.

• Note 3: The NT$ amount is translated by the exchange rate on the balance sheet date.

• Note 4: Dawei Mechantronic (Suzhou) Co., Ltd. was merged with AWEA Mechantronic (Suzhou) Ltd. in September, 2020, and AWEA Mechantronic (Suzhou) Ltd. is the surviving company. The merger was approved by the Investment Review Committee, MOEA under the letter No. 11000165350 in July 2021.

• Note 5: The cumulative amount of the investor’s investment in Mainland China shall not exceed 60% of the net value.

• Significant direct or indirect transactions through a third region business with the investee in the Mainland China: please refer to Table 4 for details.

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Table 7: Information on Major Shareholders

December 31, 2023

Table 7: Information on Major Shareholders December 31, 2023
Name of major shareholders	Number of shares held	Ownership (%)
Goodway Machine Corp.	47,962,311	49.65 %
De-Hua Yang	9,031,403	9.34 %
JiaJin Investment Co., Ltd.	6,256,388	6.47 %

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XIV. Segment Information

• (I) Relevant segment information of the Company for the years ended December 31, 2023 and 2022 is as follows:

Revenue Revenue from outside customers Inter-segment revenue Interest income Share of profit or loss of associates and joint ventures accounted for using equity method Interest expense Depreciation and amortisation Profit or loss before tax Revenue Revenue from outside customers Inter-segment revenue Interest income Share of profit or loss of associates and joint ventures accounted for using equity method Interest expense Depreciation and amortisation Profit or loss before tax			2023
	Taiwan Awea $ 1,316,798 255,523 30,000 34,073 28,704 73,037 240,987	Awea (Suzhou) $ 872,286 404 599 - 4,300 31,488 76,488	Other segments $ 172,833 13,239 3,643 - 3,869 12,222 (55,999) 2022	Adjustment and elimination $ - (269,166) (4,113) (26,895) (4,113) (2,209) (26,377)	Total
					$ 2,361,917 - 30,129 7,178 32,760 114,538 235,099
	Taiwan Awea $ 1,987,934 295,724 16,006 95,775 19,897 74,288 439,857	Awea (Suzhou) $ 942,995 1,159 809 - 4,717 32,516 108,716	Other segments $ 169,588 22,847 1,550 - 3,781 13,450 (791)	Adjustment and elimination $ - (319,730) (2,393) (87,993) (2,393) (2,209) (87,994)	Total
					$ 3,100,517 - 15,972 7,782 26,002 118,045 459,788

1. The total reportable inter-segment revenue excluding inter-segment revenue to be eliminated was NT$269,166 thousand and NT$319,730 thousand in 2023 and 2022, respectively.

2. 92 -

3. The total reportable segment income excluding income tax expense was NT$44,793 thousand and NT$110,501 thousand in 2023 and 2022, respectively.

The Company has two reportable segments: Taiwan Awea and Awea (Suzhou). The main business of Taiwan Awea is design, manufacture and sales of special machines, automation equipment and computer-controlled tool machines. Awea (Suzhou) is engaged in the manufacture, sales and installation of machinery.

The Company does not allocate income tax expense to reportable segments. The amounts reported are consistent with the reports used by the operating decision maker, and the accounting policies of the operating segments are the same as those described in Note IV Summary of Significant Accounting Polices. The profit or loss of the Company’s operating segments is based on net profit before tax. The Company recognizes inter-segment sales and transfers as transactions with third parties and measures them at current market prices.

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