BES - Audit Report / Information 2023

BES Engineering Corporation

Parent Company Only Financial Statements for the Years Ended December 31, 2023 and 2022 and Independent Auditors’ Report

INDEPENDENT AUDITORS’ REPORT

The Board of Directors and Shareholders BES Engineering Corporation

Opinion

We have audited the accompanying parent company only financial statements of BES Engineering Corporation (the “Corporation”), which comprise the parent company only balance sheets as of December 31, 2023 and 2022, and the parent company only statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes to the parent company only financial statements, including material accounting policy information (collectively referred to as the “parent company only financial statements”).

In our opinion, the accompanying parent company only financial statements present fairly, in all material respects, the parent company only financial position of the Corporation as of December 31, 2023 and 2022, and its parent company only financial performance and its parent company only cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for Opinion

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

Key Audit Matters

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

The key audit matters for the Corporation’s parent company only financial statements for the year ended December 31, 2023 are stated as follows:

Accuracy of Construction Revenue Recognized

The Corporation operates in the construction industry and is mainly engaged in the construction of roads, bridges, wharfs and multi-story residential buildings and office complexes. The Corporation calculates construction revenue based on the estimated percentage of completion and the total price of the construction project. As estimates are required to be made with reference to internal and external documents during the calculation of the percentage of completion of construction, the calculation of the percentage of completion is considered complex. In addition, the Corporation’s construction revenue for the year ended December 31, 2023 is material, hence, the accuracy of recognition of construction revenue was deemed as a key audit matter for the year ended December 31, 2023. Refer to Note 4 to the accompanying parent company only financial statements for the relevant accounting policies and Table 1 following the notes to the parent company only financial statements for the financial information of the construction projects.

The main audit procedures performed with respect to the above-mentioned key audit matter are as follows:

We obtained an understanding of and tested the design and operating effectiveness of the internal controls related to the estimation of the percentage of completion and the accuracy of construction revenue recognized.
We evaluated and confirmed that the accounting policies on the estimation of the percentage of completion were consistently applied.
We performed tests of the details of incomplete construction projects at the end of the year and confirmed the accuracy of construction revenue recognized.
We obtained confirmations of approval from the owners after the reporting period and confirmed that no material adjustments were made after the reporting period.

Net Realizable Value of Real Estate Inventory

The Corporation is mainly engaged in the construction of buildings and transacting of real estate. As stated in Note 12, the carrying amount of buildings and land held for sale is material in the parent company only balance sheets as of December 31, 2023. Since real estate inventory is stated at the lower of cost and net realizable value, and the net realizable value of real estate inventory may be affected by changes in the market price of real estate and its assessment involves management’s subjective judgment and accounting estimates, we identified the net realizable value of real estate inventory as a key audit matter for the year ended December 31, 2023. Refer to Note 5 to the accompanying parent company only financial statements for the relevant accounting judgments and key sources of estimation uncertainty.

The main audit procedures performed with respect to the above-mentioned key audit matter are as follows:

We evaluated and confirmed the accounting policies on the valuation of real estate inventory were consistently applied.
We obtained the information on the calculation of the net realizable value and impairment assessment of the above-mentioned real estate inventory, and we reviewed and confirmed the assessment results were reasonable.
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Responsibilities of Management and Those Charged with Governance for the Parent Company Only Financial Statements

Management is responsible for the preparation and fair presentation of the parent company only financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and for such internal control as management determines is necessary to enable the preparation of parent company only financial statements that are free from material misstatement, whether due to fraud or error.

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

Those charged with governance, including the audit committee, are responsible for overseeing the Corporation’s financial reporting process.

Auditors’ Responsibilities for the Audit of the Parent Company Only Financial Statements

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

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

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

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

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the parent company only financial statements for the year ended December 31, 2023 and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partners on the audits resulting in this independent auditors’ report are Yao-Lin Huang and Shih-Chieh Chou.

Deloitte & Touche Taipei, Taiwan Republic of China

March 13, 2024

Notice to Readers

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

For the convenience of readers, the independent auditors’ report and the accompanying financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. 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 financial statements shall prevail.

BES ENGINEERING CORPORATION

PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2023 AND 2022 (In Thousands of New Taiwan Dollars)

ASSETS CURRENT ASSETS Cash (Notes 4, 6 and 14) Financial assets at fair value through profit or loss - current (Notes 4, 7 and 31) Financial assets at fair value through other comprehensive income - current (Notes 4, 8 and 32) Financial assets at amortized cost - current (Notes 4, 9, 23 and 32) Contract assets - current (Notes 14, 23, 25 and Table 1) Construction receivables (Notes 4, 10, 14, 23, 25 and 31) Accounts receivable on the development of industrial districts (Notes 4, 11 and 23) Inventories (Notes 4 and 23) Buildings and land held for sale, net (Notes 4, 5, 12, 23 and 32) Construction in progress (Notes 4, 12, 23 and 32) Refundable deposits on construction contracts (Note 23) Other current assets (Notes 14 and 31) Total current assets NON-CURRENT ASSETS Financial assets at fair value through other comprehensive income - non-current (Notes 4, 8, 31 and 32) Investments accounted for using the equity method (Notes 4 and 13) Property, plant and equipment, net (Notes 4, 15 and 32) Right-of-use assets (Notes 4, 16 and 31) Investment properties, net (Notes 4, 17 and 32) Deferred tax assets (Notes 4 and 27) Refundable deposits (Notes 14 and 31) Net defined benefit assets (Notes 4 and 22) Other non-current assets Total non-current assets TOTAL LIABILITIES AND EQUITY CURRENT LIABILITIES Short-term borrowings (Notes 18 and 32) Short-term bills payable (Notes 18 and 32) Contract liabilities - current (Notes 14, 23, 25, 31 and Table 1) Notes payable (Note 23) Trade payables (Notes 14, 19, 23 and 31) Accrued expenses (Notes 14 and 31) Accounts payable for the development of industrial districts (Notes 4, 20 and 23) Current tax liabilities (Note 4) Provisions - current (Notes 4, 21 and 23) Lease liabilities - current (Notes 4, 16 and 31) Current portion of long-term borrowings (Notes 18 and 32) Guarantee deposits on construction contracts (Note 23) Other current liabilities (Notes 14 and 31) Total current liabilities NON-CURRENT LIABILITIES Long-term borrowings (Notes 18 and 32) Provisions - non-current (Notes 4 and 21) Deferred tax liabilities (Notes 4 and 27) Lease liabilities - non-current (Notes 4, 16 and 31) Net defined benefit liabilities (Notes 4 and 22) Guarantee deposits received (Note 31) Total non-current liabilities Total liabilities EQUITY Ordinary shares Capital surplus Retained earnings Legal reserve Special reserve Unappropriated earnings Total retained earnings Other equity Total equity TOTAL		2023 Amount % $ 1,928,869 4 4,248 - 556,406 1 4,193,230 8 4,938,178 9 4,034,845 7 2,811,621 5 213,921 - 11,778,943 22 10,578,999 19 54,775 - 2,278,763 4 43,372,798 79 1,901,439 3 4,970,885 9 3,165,605 6 113,626 - 862,979 2 287,828 1 48,791 - 2,812 - 24,173 - 11,378,138 21 $ 54,750,936 100 $ 5,781,000 11 1,461,960 3 3,541,961 6 13,367 - 6,361,319 12 599,408 1 19,058 - - - 505,734 1 51,061 - 623,699 1 761,530 1 190,583 - 19,910,680 36 9,969,417 18 930,278 2 1,005,634 2 64,981 - - - 409,091 1 12,379,401 23 32,290,081 59 15,308,998 28 96,521 - 1,200,927 2 2,475,958 5 4,064,226 7 7,741,111 14 (685,775) (1) 22,460,855 41 $ 54,750,936 100		2022
				Amount % $ 2,447,556 5 4,142 - 893,093 2 3,797,966 9 2,498,541 6 2,603,165 6 2,898,047 6 254,843 1 11,829,468 27 4,962,958 11 142,162 - 1,309,265 3 33,641,206 76 1,913,173 4 4,448,482 10 3,035,216 7 117,139 - 868,843 2 416,410 1 39,713 - - - 35,763 - 10,874,739 24 $ 44,515,945 100 $ 4,603,000 10 1,050,051 3 2,160,262 5 3,008 - 4,288,029 10 551,180 1 18,363 - 69,950 - 492,541 1 42,178 - 37,948 - 575,472 1 183,075 1 14,075,057 32 5,734,094 13 971,846 2 1,016,744 2 76,728 - 8,617 - 28,046 - 7,836,075 17 21,911,132 49 15,308,998 35 74,648 - 1,116,990 2 2,475,958 6 4,105,362 9 7,698,310 17 (477,143) (1) 22,604,813 51 $ 44,515,945 100

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

BES ENGINEERING CORPORATION

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

OPERATING REVENUE (Notes 4, 14, 25 and 31) Construction revenue Other operating revenue Total operating revenue OPERATING COSTS (Notes 4, 14, 22, 26 and 31) Construction costs Other operating costs Total operating costs GROSS PROFIT OPERATING EXPENSES (Notes 22, 26 and 31) Selling and marketing expenses General and administrative expenses Research and development expenses Total operating expenses PROFIT FROM OPERATIONS NON-OPERATING INCOME AND EXPENSES Interest income (Notes 4, 14, 26 and 31) Other income (Notes 4, 26 and 31) Other gains and losses (Notes 7, 26, 31 and 34) Finance costs (Notes 4, 12, 26 and 31) Expected credit losses (Note 31) Share of profit or loss of subsidiaries and associates (Notes 4 and 13) Total non-operating income and expenses PROFIT BEFORE INCOME TAX INCOME TAX EXPENSE (Notes 4 and 27) NET PROFIT FOR THE YEAR		2023 Amount % $ 17,227,199 97 505,629 3 17,732,828 100 16,089,827 91 294,898 2 16,384,725 93 1,348,103 7 93,861 - 288,557 2 33,571 - 415,989 2 932,114 5 38,811 - 106,098 - (32,848) - (225,785) (1) - - (64,631) - (178,355) (1) 753,759 4 129,040 - 624,719 4		2022
				Amount % $ 13,473,803 97 409,634 3 13,883,437 100 12,448,464 90 218,678 1 12,667,142 91 1,216,295 9 86,510 1 279,109 2 30,838 - 396,457 3 819,838 6 40,350 - 2,520,195 18 (2,522,010) (18) (175,776) (1) (22,628) - 346,039 2 186,170 1 1,006,008 7 184,693 1 821,315 6 (Continued)

BES ENGINEERING CORPORATION

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

OTHER COMPREHENSIVE INCOME (LOSS) (Notes 4, 13, 22, 24 and 27) Items that will not be reclassified subsequently to profit or loss: Remeasurement of defined benefit plans Unrealized gain (loss) on investments in equity instruments at fair value through other comprehensive income Share of the other comprehensive loss of subsidiaries and associates accounted for using the equity method Income tax related to items that will not be reclassified subsequently to profit or loss Items that may be reclassified subsequently to profit or loss: Share of the other comprehensive (loss) income of subsidiaries and associates accounted for using the equity method Other comprehensive income (loss) for the year, net of income tax TOTAL COMPREHENSIVE INCOME FOR THE YEAR EARNINGS PER SHARE (Note 28) Basic Diluted		2023 Amount % $ (8,060) - 63,890 - (2,156) - 1,612 - 55,286 - (36,762) - 18,524 - $ 643,243 4 $ 0.41 $ 0.41		2022
				Amount % $ 15,763 - (260,952) (2) (141,937) (1) (3,153) - (390,279) (3) 155,544 1 (234,735) (2) $ 586,580 4 $ 0.54 $ 0.54


		$		$

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

BES ENGINEERING CORPORATION

PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022 (In Thousands of New Taiwan Dollars)

Share Capital Issued and Outstanding (Notes 4 and 24) Number of Shares (In thousands) Amount Capital Surplus 1,530,899 $ 15,308,998 $ 73,884 - - - - - - - - - - - 745 - - 19 - - - - - - - - - - - - 1,530,899 15,308,998 74,648 - - - - - - - - - - - 9,357 - - 12,516 - - - - - - - - - - - - 1,530,899 $ 15,308,998 $ 96,521	Retained Earnings (Note 24)	Other Equity (Notes 4 and 24) Unrealized Gain (Loss) on Exchange Financial Assets Differences on at Fair Value Translation of Through Other Foreign Comprehensive Operations Income Total $ (336,052) $ 112,261 $ (223,791) - - - - - - - - - (285) (269) (554) - - - - - - 155,544 (403,713) (248,169) 155,544 (403,713) (248,169) - (4,629) (4,629) (180,793) (296,350) (477,143) - - - - - - - - - (1,205) (689) (1,894) (1,926) - (1,926) - - - (36,762) 61,670 24,908 (36,762) 61,670 24,908 - (229,720) (229,720) $ (220,686) $ (465,089) $ (685,775)
		Unrealized Gain (Loss) on Exchange Financial Assets Differences on at Fair Value Translation of Through Other Foreign Comprehensive Operations Income $ (336,052) $ 112,261 - - - - - - (285) (269) - - - - 155,544 (403,713) 155,544 (403,713) - (4,629) (180,793) (296,350) - - - - - - (1,205) (689) (1,926) - - - (36,762) 61,670 (36,762) 61,670 - (229,720) $ (220,686) $ (465,089)
Number of Shares (In thousands) 1,530,899 - - - - - - - - - 1,530,899 - - - - - - - - - 1,530,899
	Unappropriated Legal Reserve Special Reserve Earnings $ 821,206 $ 2,475,958 $ 4,379,268 295,784 - (295,784) - - (817,500) 295,784 - (1,113,284) - - - - - - - - 821,315 - - 13,434 - - 834,749 - - 4,629 1,116,990 2,475,958 4,105,362 83,937 - (83,937) - - (805,254) 83,937 - (889,191) - - - - - - - - 624,719 - - (6,384) - - 618,335 - - 229,720 $ 1,200,927 $ 2,475,958 $ 4,064,226

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

BES ENGINEERING CORPORATION

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022 (In Thousands of New Taiwan Dollars)

CASH FLOWS FROM OPERATING ACTIVITIES Profit before income tax Adjustments for: Depreciation expenses Expected credit losses Net (gain) loss on fair value changes of financial assets at fair value through profit or loss Finance costs Interest income Dividend income Share of profit or loss of subsidiaries and associates (Gain) loss on disposal of property, plant and equipment Gain on lease modification Reversal of compensation loss Changes in operating assets and liabilities Contract assets Construction receivables Accounts receivable on the development of industrial districts Inventories Construction in progress Buildings and land held for sale Other current assets Contract liabilities Notes payable Trade payables Accounts payable for the development of industrial districts Accrued expenses Provisions Net defined benefit plans Other current liabilities Cash used in operations Interest received Interest paid Income tax paid Net cash used in operating activities CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from disposal of financial assets at fair value through other comprehensive income Cash returns from capital reduction of financial assets at fair value through other comprehensive income Proceeds from (purchase) disposal of financial assets at amortized cost Proceeds from disposal of financial assets at fair value through profit or loss	2023 $ 753,759 110,569 - (106) 225,785 (38,811) (16,455) 64,631 (10,719) - (43,411) (2,439,637) (1,431,680) 86,426 40,922 (5,674,313) 262,650 (964,477) 1,381,699 10,359 2,073,290 695 39,343 15,036 (19,489) 7,508 (5,566,426) 37,642 (370,753) (83,758) (5,983,295) 412,311 - (395,264) -	2022 $ 1,006,008 90,430 22,628 2,333,852 175,776 (40,350) (2,427,807) (346,039) 839 (85) (13,721) (39,498) (306,426) 3,179,156 (68,381) (1,975,449) 197,957 (96,655) (574,116) (5,549) (254,903) (1,963,320) 170,328 32,693 (61,737) (15,026) (979,395) 40,325 (221,672) (30,329) (1,191,071) 8,506 81,736 150,466 21,321 (Continued)

BES ENGINEERING CORPORATION

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022 (In Thousands of New Taiwan Dollars)

Payments for property, plant and equipment Proceeds from disposal of property, plant and equipment Decrease in refundable deposits Net cash inflow on acquisition of subsidiary Decrease in other assets Dividends received from subsidiaries and associates Dividends received from financial assets Net cash generated from investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from short-term borrowings Proceeds from (repayments of) short-term bills payable Proceeds from (repayments of) long-term borrowings Increase in guarantee deposits received Repayment of the principal portion of lease liabilities Cash dividends distributed Acquisition of additional interests in subsidiaries Net cash generated from (used in) financing activities NET INCREASE (DECREASE) IN CASH CASH AT THE BEGINNING OF THE YEAR CASH AT THE END OF THE YEAR	2023 $ (187,176) 12,338 78,309 - 11,590 355,381 16,455 303,944 1,178,000 411,909 4,821,074 567,103 (48,888) (805,254) (963,280) 5,160,664 (518,687) 2,447,556 $ 1,928,869	2022 $ (40,367) 193 38,916 189,386 10,570 57,570 2,427,807 2,946,104 1,674,951 (1,481,920) (242,137) 72,436 (39,420) (817,500) (4,563) (838,153) 916,880 1,530,676 $ 2,447,556

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

(Concluded)

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NOTES TO FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

BES ENGINEERING CORPORATION

1. GENERAL INFORMATION

BES Engineering Corporation (the “Corporation”), which was a state-owned enterprise until June 22, 1994, engages mainly in civil engineering, building construction, real estate transaction and the development of industrial districts for the government.

The Corporation’s shares have been trading on the Taiwan Stock Exchange since March 1993.

The parent company only financial statements are presented in the Corporation’s functional currency, the New Taiwan dollar.

2. APPROVAL OF FINANCIAL STATEMENTS

The parent company only financial statements were approved by the Corporation’s board of directors on March 13, 2024.

3. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS

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

The initial application of the IFRS Accounting Standards endorsed and issued into effect by the FSC did not have material impact on the Corporation’s accounting policies.

b. The IFRS Accounting Standards endorsed by the FSC for application starting from 2024

Effective Date New, Amended and Revised Standards and Interpretations Announced by IASB (Note 1) Amendments to IFRS 16 “Lease Liability in a Sale and Leaseback” January 1, 2024 (Note 2) Amendments to IAS 1 “Classification of Liabilities as Current or January 1, 2024 Non-current” Amendments to IAS 1 “Non-current Liabilities with Covenants” January 1, 2024 Amendments to IAS 7 and IFRS 7 “Supplier Finance Arrangements” January 1, 2024 (Note 3)

Note 1: Unless stated otherwise, the above IFRS Accounting Standards will be effective for annual reporting periods beginning on or after their respective effective dates.
Note 2: A seller-lessee shall apply the Amendments to IFRS 16 retrospectively to sale and leaseback transactions entered into after the date of initial application of IFRS 16.
Note 3: The amendments provide some transition relief regarding disclosure requirements.
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As of the date the parent company only financial statements were authorized for issue, the Corporation has assessed that the application of above standards and interpretations will not have a material impact on the Corporation’s financial position and financial performance.

c. The IFRS Accounting Standards in issue but not yet endorsed and issued into effect by the FSC

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

Note 1: Unless stated otherwise, the above IFRS Accounting Standards are effective for annual reporting periods beginning on or after their respective effective dates.
Note 2: An entity shall apply those amendments for annual reporting periods beginning on or after January 1, 2025. Upon initial application of the amendments, the entity recognizes any effect as an adjustment to the opening balance of retained earnings. When the entity uses a presentation currency other than its functional currency, it shall, at the date of initial application, recognize any effect as an adjustment to the cumulative amount of translation differences in equity.

As of the date the parent company only financial statements were authorized for issue, the Corporation is continuously assessing the possible impact of the application of other standards and interpretations on the Corporation’s financial position and financial performance and will disclose the relevant impact when the assessment is completed.

4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

a. Statement of compliance

The parent company only financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

b. Basis of preparation

The parent company only financial statements have been prepared on the historical cost basis except for financial instruments which are measured at fair value, and net defined benefit plans which are measured at the present value of the defined benefit obligation less the fair value of plan assets.

The fair value measurements, which are grouped into Levels 1 to 3 based on the degree to which the fair value measurement inputs are observable and based on the significance of the inputs to the fair value measurement in its entirety, are described as follows:

1) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities;
2) Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for an asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and
3) Level 3 inputs are unobservable inputs for an asset or liability.
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When preparing these parent company only the financial statements, the Corporation used the equity method to account for its investments in subsidiaries and associates. In order for amounts of the net profit for the year, other comprehensive income for the year and total equity in the parent company only financial statements to be the same as the amounts attributable to the owner of the Corporation in its consolidated financial statements, adjustments arising from the differences in accounting treatment between the parent company only basis and the consolidated basis were made to investments accounted for using the equity method, share of profit or loss of subsidiaries and associates, the share of other comprehensive income of subsidiaries and associates and the related equity items, as appropriate, in these parent company only financial statements.

c. Classification of current and non-current assets and liabilities

Current assets include:

1) Assets held primarily for the purpose of trading;
2) Assets expected to be realized within 12 months after the reporting period; and
3) Cash and cash equivalents unless the asset is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period.

Current liabilities include:

1) Liabilities held primarily for the purpose of trading;
2) Liabilities due to be settled within 12 months after the reporting period, even if an agreement to refinance, or to reschedule payments, on a long-term basis is completed after the reporting period and before the parent company only financial statements are authorized for issue; and
3) Liabilities for which the Corporation does not have an unconditional right to defer settlement for at least 12 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.

Assets and liabilities that are not classified as current are classified as non-current.

The Corporation is engaged in the construction business, which has an operating cycle of over 1 year. The normal operating cycle applies when considering the classification of the Corporation’s construction-related assets and liabilities.

d. Foreign currencies

In preparing the Corporation’s financial statements, transactions in currencies other than the Corporation’s functional currency (i.e., foreign currencies) are recognized at the rates of exchange prevailing at the dates of the transactions.

At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Exchange differences on monetary items arising from settlement or translation are recognized in profit or loss in the period in which they arise.

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Non-monetary items denominated in foreign currencies that are measured at fair value are retranslated at the rates prevailing at the date when the fair value is determined. Exchange differences arising from the retranslation of non-monetary items are included in profit or loss for the period except for exchange differences arising from the retranslation of non-monetary items in respect of which gains and losses are recognized directly in other comprehensive income; in which cases, the exchange differences are also recognized directly in other comprehensive income.

Non-monetary item denominated in a foreign currency and measured at historical cost is stated at the reporting currency as originally translated from the foreign currency.

For the purpose of presenting parent company only financial statements, the Corporation’s foreign operations (including subsidiaries and associates) that are prepared using functional currencies which are different from the currency of the Corporation are translated into the presentation currency, the New Taiwan dollar, as follows: Assets and liabilities are translated at the exchange rates prevailing at the end of the reporting period; and income and expense items are translated at the average exchange rates for the period. The resulting currency translation differences are recognized in other comprehensive income.

On the disposal of a foreign operation (i.e., a disposal of the Corporation’s entire interest in a foreign operation, or a disposal involving the loss of control over a subsidiary that includes a foreign operation, or a partial disposal of an interest in a joint arrangement or an associate that includes a foreign operation of which the retained interest becomes a financial asset), all of the exchange differences accumulated in equity in respect of that operation are reclassified to profit or loss.

In a partial disposal of a subsidiary that does not result in the Corporation losing control over the subsidiary, the proportionate share of accumulated exchange differences is included in the calculation of equity transactions but is not recognized in profit or loss. For all other partial disposals, the proportionate share of the accumulated exchange differences recognized in other comprehensive income is reclassified to profit or loss.

e. Inventories

Inventories consist of raw materials and are stated at the lower of cost or net realizable value. Inventory write-downs are made by item, except where it may be appropriate to group similar or related items. The net realizable value is the estimated selling price of inventories less all estimated costs of completion and costs necessary to make the sale. Inventories are recorded at the weighted-average cost on the balance sheet date.

For a contract where a land owner provides land for construction of buildings by a property developer in exchange for a certain percentage of the buildings, no exchange gain or loss is recognized if the buildings acquired are classified as properties held for sale. Revenue is recognized when the properties held for sale are sold to third parties.

f. Investments in subsidiaries

The Corporation uses the equity method to account for its investments in subsidiaries.

A subsidiary is an entity that is controlled by the Corporation.

Under the equity method, an investment in a subsidiary is initially recognized at cost and adjusted thereafter to recognize the Corporation’s share of the profit or loss and other comprehensive income of the subsidiary. The Corporation also recognizes the changes in the Corporation’s share of equity of subsidiaries.

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Changes in the Corporation’s ownership interest in a subsidiary that do not result in the Corporation losing control of the subsidiary are accounted for as equity transactions. The Corporation recognizes directly in equity any difference between the carrying amount of the investment and the fair value of the consideration paid or received.

When the Corporation’s share of loss of a subsidiary exceeds its interest in that subsidiary (which includes any carrying amount of the investment accounted for using the equity method and long-term interests that, in substance, form part of the Corporation’s net investment in the subsidiary), the Corporation continues recognizing its share of further loss, if any.

Any excess of the cost of acquisition over the Corporation’s share of the net fair value of the identifiable assets and liabilities of a subsidiary that constitutes a business at the date of acquisition is recognized as goodwill, which is included within the carrying amount of the investment and is not amortized. Any excess of the Corporation’s share of the net fair value of the identifiable assets and liabilities of a subsidiary that constitutes a business over the cost of acquisition is recognized immediately in profit or loss.

The Corporation assesses its investment for any impairment by comparing the carrying amount with the estimated recoverable amount as assessed based on the investee’s financial statements as a whole. Impairment loss is recognized when the carrying amount exceeds the recoverable amount. If the recoverable amount of the investment subsequently increases, the Corporation recognizes a reversal of the impairment loss; the adjusted post-reversal carrying amount should not exceed the carrying amount that would have been recognized (net of amortization or depreciation) had no impairment loss been recognized in prior years. An impairment loss recognized on goodwill cannot be reversed in a subsequent period.

When the Corporation loses control of a subsidiary, it recognizes the investment retained in the former subsidiary at its fair value at the date when control is lost. The difference between the fair value of the retained investment plus any consideration received and the carrying amount of the previous investment at the date when control is lost is recognized as a gain or loss in profit or loss. Besides this, the Corporation accounts for all amounts previously recognized in other comprehensive income in relation to that subsidiary on the same basis as would be required had the Corporation directly disposed of the related assets or liabilities.

Profit or loss resulting from downstream transactions is eliminated in full only in the parent company only financial statements. Profit and loss resulting from upstream transactions and transactions between subsidiaries is recognized only in the parent company only financial statements and only to the extent of interests in the subsidiaries that are not related to the Corporation.

g. Investments in associates

An associate is an entity over which the Corporation has significant influence and which is neither a subsidiary nor an interest in a joint venture.

The Corporation uses the equity method to account for its investments in associates.

Under the equity method, investments in an associate is initially recognized at cost and adjusted thereafter to recognize the Corporation’s share of the profit or loss and other comprehensive income of the associates. The Corporation also recognizes the changes in the Corporation’s share of the equity of associates.

Any excess of the cost of acquisition over the Corporation’s share of the net fair value of the identifiable assets and liabilities of an associate at the date of acquisition is recognized as goodwill, which is included within the carrying amount of the investment and is not amortized. Any excess of the Corporation’s share of the net fair value of the identifiable assets and liabilities over the cost of acquisition, after reassessment, is recognized immediately in profit or loss.

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When the Corporation subscribes for additional new shares of an associate at a percentage different from its existing ownership percentage, the resulting carrying amount of the investment differs from the amount of the Corporation’s proportionate interest in the associate. The Corporation records such a difference as an adjustment to investments with the corresponding amount charged or credited to capital surplus - changes in capital surplus from investments in associates accounted for using the equity method. If the Corporation’s ownership interest is reduced due to its additional subscription of the new shares of the associate, the proportionate amount of the gains or losses previously recognized in other comprehensive income in relation to that associate is reclassified to profit or loss on the same basis as would be required had the investee directly disposed of the related assets or liabilities. When the adjustment should be debited to capital surplus, but the capital surplus recognized from investments accounted for using the equity method is insufficient, the shortage is debited to retained earnings.

When the Corporation’s share of losses of an associate equals or exceeds its interest in that associate (which includes any carrying amount of the investment accounted for using the equity method and long-term interests that, in substance, form part of the Corporation’s net investment in the associate), the Corporation discontinues recognizing its share of further loss, if any. Additional losses and liabilities are recognized only to the extent that the Corporation has incurred legal obligations, or constructive obligations, or made payments on behalf of that associate.

The entire carrying amount of an investment (including goodwill) is tested for impairment as a single asset by comparing its recoverable amount with its carrying amount. Any impairment loss recognized is not allocated to any asset, including goodwill, that forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognized to the extent that the recoverable amount of the investment subsequently increases.

The Corporation discontinues the use of the equity method from the date on which its investment ceases to be an associate. Any retained investment is measured at fair value at that date, and the fair value is regarded as the investment’s fair value on initial recognition as a financial asset. The difference between the previous carrying amount of the associate attributable to the retained interest and its fair value is included in the determination of the gain or loss on disposal of the associate. The Corporation accounts for all amounts previously recognized in other comprehensive income in relation to that associate on the same basis as would be required had that associate directly disposed of the related assets or liabilities.

When the Corporation transacts with its associate, profits and losses resulting from the transactions with the associate are recognized in the Corporation’s parent company only financial statements only to the extent of interests in the associate that are not related to the Corporation.

h. Joint operations

A joint operation is a joint arrangement whereby the Corporation and other parties that have joint control of the arrangement have rights to the assets and obligations for the liabilities relating to the arrangement.

Any acquisition of an interest in a joint operation in which the activity of the joint operation constitutes a business should be treated as a business combination, except when the parties sharing joint control are under the common control of the same ultimate controlling party or parties both before and after the acquisition and that control is not transitory.

The Corporation recognizes the following items in relation to its interest in a joint operation:

Its assets, including its share of any assets held jointly.
Its liabilities, including its share of any liabilities incurred jointly.
Its revenue from the sale of its share of the output arising from the joint operation.
Its share of the revenue from the sale of the output of the joint operation.
Its expenses, including its share of any expenses incurred jointly.
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The Corporation accounts for the assets, liabilities, revenue and expenses relating to its interest in a joint operation in accordance with the IFRS Accounting Standards applicable to the particular assets, liabilities, revenue and expenses.

When the Corporation sells or contributes assets to its joint operation, it recognizes gains and losses resulting from such a transaction only to the extent of the other parties’ interests in the joint operation. When the Corporation purchases assets from its joint operation, it does not recognize its share of the gain or loss until it resells those assets to a third party.

i. Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost less accumulated depreciation and accumulated impairment loss.

Except for freehold land which is not depreciated, the depreciation of property, plant and equipment is recognized using the declining balance method. Each significant part is depreciated separately. The estimated useful lives, residual values and depreciation methods are reviewed at the end of each reporting period, with the effects of any changes in the estimates accounted for on a prospective basis.

On derecognition of an item of property, plant and equipment, the difference between the sales proceeds and the carrying amount of the asset is recognized in profit or loss.

j. Investment properties

Investment properties are properties held to earn rental and/or for capital appreciation. Investment properties include right-of-use assets and properties under construction that meet the definition of investment properties. Investment properties also include land held for a currently undetermined future use.

Investment properties are initially measured at cost, including transaction costs. Subsequent to initial recognition, investment properties are measured at cost less accumulated depreciation and accumulated impairment loss.

Depreciation is recognized using the declining balance method and straight-line method.

On derecognition of an investment property, the difference between the net disposal proceeds and the carrying amount of the asset is included in profit or loss.

k. Impairment of property, plant and equipment, right-of-use assets, investment properties, intangible assets other than goodwill and assets related to contract costs

At the end of each reporting period, the Corporation reviews the carrying amounts of its property, plant and equipment, right-of-use assets, investment properties and intangible assets, excluding goodwill, to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. When it is not possible to estimate the recoverable amount of an individual asset, the Corporation estimates the recoverable amount of the cash-generating unit to which the asset belongs. Corporate assets are allocated to the individual cash-generating units on a reasonable and consistent basis of allocation. Otherwise, they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified.

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The recoverable amount is the higher of fair value less costs to sell and value in use. If the recoverable amount of an asset or cash-generating unit is estimated to be less than its carrying amount, the carrying amount of the asset or cash-generating unit is reduced to its recoverable amount, with the resulting impairment loss recognized in profit or loss.

When an impairment loss is subsequently reversed, the carrying amount of the corresponding asset, cash-generating unit or assets related to contract costs is increased to the revised estimate of its recoverable amount, but only to the extent of the carrying amount that would have been determined had no impairment loss been recognized on the asset, cash-generating unit or assets related to contract costs in prior years. A reversal of an impairment loss is recognized in profit or loss.

l. Financial instruments

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

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issuance of financial assets and financial liabilities (other than financial assets and financial liabilities at FVTPL) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at FVTPL are recognized immediately in profit or loss.

1) Financial assets

All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis.

a) Measurement categories

Financial assets are classified into the following categories: Financial assets at FVTPL, financial assets at amortized cost and investments in equity instruments at FVTOCI.

i. Financial assets at FVTPL

Financial assets are classified as at FVTPL when such financial assets are mandatorily classified or designated as at FVTPL. Financial assets mandatorily classified as at FVTPL include investments in equity instruments which are not designated as at FVTOCI and debt instruments that do not meet the amortized cost criteria or the FVTOCI criteria.

Financial assets at FVTPL are subsequently measured at fair value, and any remeasurement gains or losses on such financial assets are recognized in other gains or losses. Fair value is determined in the manner described in Note 30.

ii. Financial assets at amortized cost

Financial assets that meet the following conditions are subsequently measured at amortized cost:

i) The financial assets are held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and
ii) The contractual terms of the financial assets give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
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Subsequent to initial recognition, financial assets at amortized cost, including cash and cash equivalents, trade receivables at amortized cost and other receivables, are measured at amortized cost, which equals the gross carrying amount determined using the effective interest method less any impairment loss. Exchange differences are recognized in profit or loss.

Interest income is calculated by applying the effective interest rate to the gross carrying amount of such a financial asset, except for:

i) Purchased or originated credit-impaired financial assets, for which interest income is calculated by applying the credit-adjusted effective interest rate to the amortized cost of such financial assets; and
ii) Financial assets that are not credit-impaired on purchase or origination but have subsequently become credit-impaired, for which interest income is calculated by applying the effective interest rate to the amortized cost of such financial assets in subsequent reporting periods.

Cash equivalents include time deposits with original maturities within 3 months from the date of acquisition, which are highly liquid, readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value. These cash equivalents are held for the purpose of meeting short-term cash commitments.

iii. Investments in equity instruments at FVTOCI

On initial recognition, the Corporation may make an irrevocable election to designate investments in equity instruments as at FVTOCI. Designation as at FVTOCI is not permitted if the equity investment is held for trading or if it is contingent consideration recognized by an acquirer in a business combination.

Investments in equity instruments at FVTOCI are subsequently measured at fair value with gains and losses arising from changes in fair value recognized in other comprehensive income and accumulated in other equity. The cumulative gain or loss will not be reclassified to profit or loss on disposal of the equity investments; instead, it will be transferred to retained earnings.

Dividends on these investments in equity instruments are recognized in profit or loss when the Corporation’s right to receive the dividends is established, unless the dividends clearly represent a recovery of part of the cost of the investment.

b) Impairment of financial assets and contract assets

The Corporation recognizes a loss allowance for expected credit losses on financial assets at amortized cost (including trade receivables), as well as contract assets.

The Corporation always recognizes lifetime expected credit losses (ECLs) for trade receivables and contract assets. For all other financial instruments, the Corporation recognizes lifetime ECLs when there has been a significant increase in credit risk since initial recognition. If, on the other hand, the credit risk on a financial instrument has not increased significantly since initial recognition, the Corporation measures the loss allowance for that financial instrument at an amount equal to 12-month ECLs.

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Expected credit losses reflect the weighted average of credit losses with the respective risks of default occurring as the weights. Lifetime ECLs represent the expected credit losses that will result from all possible default events over the expected life of a financial instrument. In contrast, 12-month ECLs represent the portion of lifetime ECLs that is expected to result from default events on a financial instrument that are possible within 12 months after the reporting date.

The impairment loss of all financial assets is recognized in profit or loss by a reduction in their carrying amounts through a loss allowance account.

c) Derecognition of financial assets

The Corporation derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.

On derecognition of a financial asset at amortized cost in its entirety, the difference between the asset’s carrying amount and the sum of the consideration received and receivable is recognized in profit or loss. On derecognition of an investment in a debt instrument at FVTOCI, the difference between the asset’s carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss which had been recognized in other comprehensive income is recognized in profit or loss. However, on derecognition of an investment in an equity instrument at FVTOCI, the difference between the asset’s carrying amount and the sum of the consideration received and receivable is recognized in profit or loss, and the cumulative gain or loss which had been recognized in other comprehensive income is transferred directly to retained earnings, without recycling through profit or loss.

2) Equity instruments

Debt and equity instruments issued by the Corporation are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

Equity instruments issued by the Corporation are recognized at the proceeds received, net of direct issue costs.

The repurchase of the Corporation’s own equity instruments is recognized in and deducted directly from equity, and its carrying amounts are calculated based on weighted average by share types. No gain or loss is recognized in profit or loss on the purchase, sale, issuance or cancellation of the Corporation’s own equity instruments.

3) Financial liabilities

a) Subsequent measurement

All financial liabilities are measured at amortized cost using the effective interest method.

b) Derecognition of financial liabilities

The difference between the carrying amount of a financial liability derecognized and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in profit or loss.

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m. Provisions

Provisions are measured at the best estimate of the discounted cash flows of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognized as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

1) Onerous contracts

Onerous contracts are those in which the Corporation’s unavoidable costs of meeting the contractual obligations exceed the economic benefits expected to be received from the contract. The present obligations arising under onerous contracts are recognized and measured as provisions. In assessing whether a contract is onerous, the cost of fulfilling a contract includes both the incremental costs of fulfilling that contract and an allocation of other costs that are related directly to fulfilling contracts.

2) Warranties

Provisions for the expected cost of warranty obligations to assure that products comply with agreed-upon specifications are recognized on the date of sale of the relevant products at the best estimate by the management of the Corporation of the expenditures required to settle the Corporation’s obligations.

n. Revenue recognition

The Corporation identifies contracts with customers, allocates the transaction price to the performance obligations and recognizes revenue when performance obligations are satisfied.

1) Revenue from the sale of goods

For contracts to sell properties in the ordinary course of business, the fixed transaction price is received in instalments and recognized as a contract liability. The transaction price, after adjusting for the effect of the significant financing component, is recognized as revenue when the construction is completed and the property is transferred to the buyer.

2) Revenue from the rendering of services

Revenue from the rendering of services is recognized when services are provided.

Revenue from a contract to provide services is recognized with reference to the stage of completion of the contract.

3) Construction contract revenue

The Corporation recognizes revenue from real estate construction contracts which are in the progress of construction over time. The Corporation measures the progress of completion of the construction contracts based on the satisfaction of performance obligations as stated in the contracts. Contract assets are recognized during the construction and are reclassified to trade receivables at the point at which the customer is invoiced. If the milestone payments exceed the revenue recognized to date, then the Corporation recognizes contract liabilities for the difference. Certain payments, which are retained by the customer as specified in the contract, are intended to ensure that the Corporation adequately completes all of its contractual obligations. Such retention receivables are recognized as contract assets until the Corporation satisfies its performance obligations.

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When the outcome of a performance obligation cannot be reasonably measured, contract revenue is recognized only to the extent of contract costs incurred in satisfying the performance obligation for which recovery is expected.

4) Business on the development of industrial districts

The Corporation is authorized by the Bureau of Industrial Parks, Ministry of Economic Affairs to develop and sell the development of industrial districts, whose accounting affairs are processed individually. Input costs of each industrial zone debit accounts receivable on the development of industrial districts; the price of land was paid by the purchaser, and the cost of development credits accounts payable for the development of industrial districts. When vendors pay off the price, accounts receivable on the development of industrial districts will be charged off. If the balance remains, the committee of industrial zone development and administration fund will be remitted.

Business on the development of industrial districts is charged by appointment contracts and related laws, which recognized in agency fee revenue included in other operating revenue of current year.

o. Buildings and land held for sale, net

Buildings and land held for sale, net is stated at the lower of cost or net realizable value. Comparing costs with net realizable value is based on individual item. The net realizable value is the estimated selling price less the selling expense. The cost is calculated by the specific identification method when selling.

p. Construction contracts

When the outcome of a construction contract can be estimated reliably, revenue and costs are recognized with reference to the stage of completion of the contract activity at the end of the reporting period, measured based on the proportion of contract costs incurred to date relative to the estimated total contract costs, expect for the stage of completion which isn’t representative. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

When the outcome of a construction contract can be estimated reliably, revenue from cost-plus contracts is recognized with reference to the recoverable costs incurred during the period plus the fees earned, measured according to the proportion of the costs incurred to date to the estimated total costs of the contract.

When it is probable that total contract costs will exceed the total contract revenue, the expected loss is recognized as an expense immediately.

When contract costs incurred to date plus the recognized profit less the recognized deficits exceed progress billings, the surplus is shown as the gross amount due from customers for contract work. For contracts where progress billings exceed contract costs incurred to date plus the recognized profit less the recognized deficits, the surplus is shown as the gross amount due to customers for contract work. Amounts received before the related work is performed are included in the parent company only balance sheets as a liability under contract liabilities. Amounts billed for work performed but not yet paid by customers are included in the parent company only balance sheets under trade receivables.

q. Leases

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

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For a contract that contains a lease component and non-lease components, the Corporation allocates the consideration in the contract to each component on the basis of the relative stand-alone price and accounts for each component separately.

1) The Corporation as lessor

Leases are classified as finance leases whenever the terms of a lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

Lease payments less any lease incentives payable from operating leases are recognized as income on a straight-line basis over the terms of the relevant leases. Initial direct costs incurred in obtaining operating leases are added to the carrying amounts of the underlying assets and recognized as expenses on a straight-line basis over the lease terms.

When a lease includes both land and building elements, the Corporation assesses the classification of each element separately as a finance or an operating lease based on the assessment as to whether substantially all the risks and rewards incidental to ownership of each element have been transferred to the lessee. The lease payments are allocated to the land and the building elements in proportion to the relative fair values of the leasehold interests in the land element and building element of the lease at the inception of the contract. If the allocation of the lease payments can be made reliably, each element is accounted for separately in accordance with its lease classification. When the lease payments cannot be allocated reliably to the land and building elements, the entire lease is generally classified as a finance lease unless it is clear that both elements are operating leases; in which case, the entire lease is classified as an operating lease.

2) The Corporation as lessee

The Corporation recognizes right-of-use assets and lease liabilities for all leases at the commencement date of a lease, except for short-term leases and low-value asset leases accounted for applying a recognition exemption where lease payments are recognized as expenses on a straight-line basis over the lease terms.

Right-of-use assets are initially measured at cost, which comprises the initial measurement of lease liabilities adjusted for lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs needed to restore the underlying assets, and less any lease incentives received. Right-of-use assets are subsequently measured at cost less accumulated depreciation and impairment losses, and adjusted for any remeasurement of the lease liabilities. Right-of-use assets are presented on a separate line in the parent company only balance sheets.

Right-of-use assets are depreciated using the straight-line method from the commencement dates to the earlier of the end of the useful lives of the right-of-use assets or the end of the lease terms.

Lease liabilities are initially measured at the present value of the lease payments, which comprise fixed payments and in-substance fixed payments. The lease payments are discounted using the interest rate implicit in a lease, if that rate can be readily determined. If that rate cannot be readily determined, the lessee’s incremental borrowing rate will be used.

Subsequently, lease liabilities are measured at amortized cost using the effective interest method, with interest expense recognized over the lease terms. When there is a change in future lease payments resulting from a change in a lease term, the Corporation remeasures the lease liabilities with a corresponding adjustment to the right-of-use-assets. However, if the carrying amount of the right-of-use assets is reduced to zero, any remaining amount of the remeasurement is recognized in profit or loss. For a lease modification that is not accounted for as a separate lease, the Corporation accounts for the remeasurement of the lease liability by (a) decreasing the carrying amount of the right-of-use asset of lease modifications that decreased the scope of the lease, and recognizing in profit or loss any gain or loss on the partial or full termination of the lease; (b) making a

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corresponding adjustment to the right-of-use asset of all other lease modifications. Lease liabilities are presented on a separate line in the parent company only balance sheets.

Variable lease payments that do not depend on an index or a rate are recognized as expenses in the periods in which they are incurred.

r. Borrowing costs

Borrowing costs directly attributable to an acquisition, construction or production of qualifying assets are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.

Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization.

Other than those stated above, all other borrowing costs are recognized in profit or loss in the period in which they are incurred.

s. Employee benefits
1) Short-term employee benefits

Liabilities recognized in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related services.

2) Retirement benefits

Payments to defined contribution retirement benefit plans are recognized as expenses when employees have rendered services entitling them to the contributions.

Defined benefit costs (including service cost, net interest and remeasurement) under defined benefit retirement benefit plans are determined using the projected unit credit method. Service cost (including current service cost and past service cost) and net interest on the net defined benefit liabilities (assets) are recognized as employee benefits expense in the period in which they occur. Remeasurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling and the return on plan assets (excluding interest), is recognized in other comprehensive income in the period in which it occurs. Remeasurement recognized in other comprehensive income is reflected immediately in retained earnings and will not be reclassified to profit or loss.

Net defined benefit liabilities (assets) represent the actual deficit (surplus) in the Corporation’s defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any refunds from the plans or reductions in future contributions to the plans.

t. Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

1) Current tax

Income tax payable (recoverable) is based on taxable profit (loss) for the year determined according to the applicable tax laws of each tax jurisdiction.

According to the Income Tax Act in the ROC, an additional tax on unappropriated earnings is provided for in the year the shareholders approve to retain earnings.

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Adjustments of prior years’ tax liabilities are added to or deducted from the current year’s tax provision.

2) Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities and the corresponding tax bases used in the computation of taxable profit.

Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences and unused loss carryforwards to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized.

Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries and associates and interests in joint ventures, except where the Corporation is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are recognized only to the extent that it is probable that there will be sufficient taxable profits against which to utilize the benefits of the temporary differences and such temporary differences are expected to reverse in the foreseeable future.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the assets to be recovered. A previously unrecognized deferred tax asset is also reviewed at the end of each reporting period and recognized to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.

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

3) Current and deferred taxes

Current and deferred taxes are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive income or directly in equity; in which case, the current and deferred taxes are also recognized in other comprehensive income or directly in equity, respectively.

5. MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Corporation’s accounting policies, management is required to make judgments, estimations, and assumptions on the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised if the revisions affect only that period or in the period of the revisions and future periods if the revisions affect both current and future periods.

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Key Sources of Estimation Uncertainty

a. Construction contracts

Contract revenue and costs are recognized by reference to the stage of completion of each contract. The degree of completion of a contract is measured based on the satisfaction of performance obligations stated in the contract.

The estimated total contract costs and contractual items are assessed and determined by management, based on the nature of the work, expected sub-contracting charges, construction periods, processes, methods, etc., for each construction contract. Changes in these estimates might affect the calculation of the percentage of completion and related profit and loss from the construction contracts.

b. Write-down of inventories

The net realizable value of inventories is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. The estimation of net realizable value is based on current market conditions and historical experience in the sale of product of a similar nature. Changes in market conditions may have a material impact on the estimation of the net realizable value.

6. CASH

Cash on hand Checking accounts and demand deposits		December 31	December 31
		2023 $ 5,034 1,923,835 $ 1,928,869	2022 $ 4,426 2,443,130 $ 2,447,556

The market rate intervals of bank deposits at the end of the reporting period was as follows:

Bank deposits	December 31
	2023 2022 0.005%-0.580% 0.005%-0.455%

7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS - CURRENT

Financial assets at FVTPL Financial assets mandatorily classified as at FVTPL Non-derivative financial assets Mutual funds		December	31
		2023 $ 4,248	2022 $ 4,142

The appropriations of earnings for 2021 were approved by Core Pacific City Co., Ltd.’s (“Core Pacific City”) shareholders in their meeting on February 23, 2022. The Corporation received cash dividends of $2,335,677 thousand in accordance with the above resolution of the shareholders’ meeting, which was received in full on February 25, 2022.

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On May 24, 2022, the Corporation disposed of all the shares of a subsidiary of the Corporation, Core Pacific City to Glory Construction Co., Ltd. The amount of proceeds from the disposal was $21,321 thousand and the fair value was $21,385 thousand at the date of disposal, and the amount of profit or loss recognized in 2022 for this transaction was calculated as follows:

	For the Year	For the Year
		Ended
	December 31,
		2022
Proceeds from disposal	$	21,321
Less: Fair value of retained investment (15.34%)		(21,385)
Lose recognized (other gains and losses)	$	(64)

8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

Investments in equity instruments at FVTOCI

Current Domestic investments Listed shares Non-current Domestic investments Listed shares Unlisted shares		December 31	December 31
		2023 $ 556,406 $ 1,788,277 113,162 $ 1,901,439	2022 $ 893,093 $ 1,808,411 104,762 $ 1,913,173

These investments in Taiwan Business Bank, China Petrochemical Development Corporation (the “China Petrochemical Development”), Century Development Corporation, and Overseas Investment & Development Corporation are not held for trading. Instead, they are held for medium to long-term strategic purposes. Accordingly, the management elected to designate these investments in equity instruments as at FVTOCI as they believe that recognizing short-term fluctuations in these investments’ fair value in profit or loss would not be consistent with the Corporation’s strategy of holding these investments for long-term purposes.

The Corporation participated in cash capital increase of China Petrochemical Development by subscribing for the shares as specific person was $770,870 thousand on December 17, 2021, and refunded of subscription amount of $81,736 thousand on January 26, 2022, and the related registration of the aforementioned transactions has been completed.

Refer to Note 32 for information relating to investments in equity instruments at FVTOCI pledged as security.

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9. FINANCIAL ASSETS AT AMORTIZED COST

Current Domestic investments Time deposits with original maturities of more than 3 months (a) Others (b)		December 31	December 31
		2023 $ 1,372,909 2,820,321 $ 4,193,230	2022 $ 1,376,737 2,421,229 $ 3,797,966

a. The ranges of interest rates for time deposits with original maturities of more than 3 months were approximately 0.175%-1.600% and 0.002%-1.450% per annum as of December 31, 2023 and 2022, respectively.
b. Restricted deposits and reserve account for trusts.

Refer to Note 32 for information relating to investments in financial assets at amortized cost pledged as security.

10. CONSTRUCTION RECEIVABLES

Construction receivables		December 31	December 31
		2023 $ 4,034,845	2022 $ 2,603,165

Construction Receivables

The average credit period granted by the Corporation for sales of its products is 90 days; assessment of impairment of accounts receivable is based on aging analysis, past experience and the client’s current financial condition on an individual basis to estimate the uncollectible amounts.

When deciding the collectability of trade receivables, the Corporation takes the change of credit quality from the grant date of trade receivables to the balance sheet date in consideration. Past experience shows that, unless the traders are government entities which have good credit quality and are evaluated not to recognize allowance for doubtful accounts, the Corporation evaluates the uncollectible amounts in the future and recognizes appropriate allowance for doubtful accounts in principle.

Expect for individually recognizing appropriate allowance for doubtful accounts, which is based on objective evidence showing that trade receivables of specific trader is uncollectible, recognizing allowance for doubtful accounts is based on past experience of collective evaluation. The Corporation then distinguishes customers into different risk groups and recognizes allowance loss by expected loss rate.

At the balance sheet date, no allowance for doubtful accounts was recognized for some past-due trade receivables and construction receivables because there were no significant changes in credit quality, the amounts outstanding were still considered recoverable, and there was no indication of impairment of these receivables.

The Corporation writes off a trade receivable when there is evidence indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery. For trade receivables that have been written off, the Corporation continues to engage in enforcement activity to attempt to recover the receivables due. Where recoveries are made, these are recognized in profit or loss.

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The aging of receivables, net was as follows:

Not past due		December 31	December 31
		2023 $ 4,034,845	2022 $ 2,603,165

The above aging schedule was based on the past due days from the invoice date.

11. ACCOUNTS RECEIVABLE ON THE DEVELOPMENT OF INDUSTRIAL DISTRICTS

Chung Hua Coastal Industrial Park Yunlin Technology-based Industrial Park Other industrial districts		December 31	December 31
		2023 $ 897,375 7,390 1,906,856 $ 2,811,621	2022 $ 971,231 147 1,926,669 $ 2,898,047

The Corporation’s development costs (including interest) amounted to $1,433,795 thousand in 2023 and $3,500,381 thousand in 2022, and the amounts collected were $1,520,221 thousand in 2023 and $6,679,537 thousand in 2022.

The Corporation’s receivables on the development of industrial districts are mainly funded by advanced cash and interest from the Bureau of Industrial Parks, Ministry of Economic Affairs. After assessing the following factors, there is no need to provide an allowance for bad debts:

a. The price of land in an industrial zone is based on the estimated total development costs. All the interest generated from the development costs after the settlement base date are in response to the price adjustment mechanism used for adding the interest month by month and are a basis for reflecting the accurate price of an industrial zone at various points in time. The price paid by the vendors are included in the interest generated from the development costs after the settlement base date. The Bureau of Industrial Parks, Ministry of Economic Affairs implements a land lease plan in an industrial zone, and the development costs of the entrusted development unit is also calculated based on the price in the month in which the manufacturers sign the lease. Land rental income is simply one of the advanced repayments of the development costs and can still be returned through other relevant alternative measures.
b. As industrial zone development contracts are civil law appointment contracts, all the authorized development units are not subject to the risk of profit and loss. This is because the fees paid by the appointed firms are legally required and reimbursed from the appointing party which is a government agency and such an agent’s credit is unquestionable.
c. Development contracts only stipulate that development units may use advanced prepayments to process the development costs of the land sale price. Additionally, rental income from the land is not required to be the only repayment source. Industrial zone development is the government’s method of promoting the industrial development policy. Thus, the government shall adopt countermeasures to solve problems such as sluggish sale of land in industrial zones or higher than market rental or selling prices leading to unsaleable land in industrial zones. The recovery funds that are entrusted to development units do not necessarily directly correlate with whether the land can be sold successfully.
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d. The Corporation’s receivables on the development of industrial districts have no bad debt history. Also, the Bureau of Industrial Parks, Ministry of Economic Affairs has not stated or shown that it will not repay the development costs to the Corporation. Moreover, the funds will be recovered successively, and some of the cases have been fully recovered.

In summary, there is no major doubt or uncertainty regarding the recovery of advanced development repayments for industrial zone development, and thus, allowance for bad debts is not required.

12. BUILDINGS AND LAND HELD FOR SALE, NET AND CONSTRUCTION IN PROGRESS

Buildings and Land Held for Sale, Net December 31, 2023 Self-construction on self-possessed land $ 410,062 Joint construction 11,368,881 Undefined use - $ 11,778,943 December 31, 2022 Self-construction on self-possessed land $ 410,062 Joint construction 11,419,406 Undefined use - $ 11,829,468		Construction in Progress	Construction in Progress	Construction in Progress
		Cost of Land $ 1,244,634 115,830 25,236 $ 1,385,700 $ 1,244,634 115,830 25,236 $ 1,385,700	Cost of Construction $ 5,739,619 3,453,680 - $ 9,193,299 $ 1,510,060 2,067,198 - $ 3,577,258	Total $ 6,984,253 3,569,510 25,236 $ 10,578,999 $ 2,754,694 2,183,028 25,236 $ 4,962,958

The Corporation’s investments in the above buildings and land are specifically held for sales purposes, and the allowance for decline in value were both $39,245 thousand as of December 31, 2023 and 2022.

In November 2009, the Corporation acquired lots in the Zhengyi Section, Taipei City, and are in the process of contacting the landlords to discuss a new integrated development plan after the completion of the cooperative housing or urban renewal procedures.

In February 2011, the Corporation started to process an urban renewal plan for Yan Shou Public Housing located on land numbers 57-13 and 57 in the Baoqing Section, Taipei City.

a. The Corporation acquired the joint-construction agreements for land number 57-13 from the majority of the landlords. The application of the urban renewal business plan was completed in October 2013, and the approval was received in December 2015; the transfer of ownership rights was approved in December 2018; the approval letter was received on January 23, 2019; the construction license was approved on June 13, 2019; the first public coordination meeting was held on September 26, 2019; the demolition review meeting was passed on December 10, 2019; the relocation was completed in March 2020; the demolition of the buildings was completed in July 2020. On September 6, 2022, the beam erection ceremony was held. As of December 31, 2023, the interior and exterior decorations were still in progress.
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b. The Corporation acquired the joint-construction agreements for land number 57 from the majority of the landlords. The application of the urban renewal business plan was completed in December 2014, and the approval was received in June 2017; the transfer of ownership rights was submitted for approval in October 2018; the public hearing was held in February 2019; the hearing meeting was convened on December 23, 2019; the approval letter was received on April 22, 2020; the construction license was approved on June 21, 2021; the first public coordination meeting was held on August 31, 2021; the negotiated integration with tenants was completed on December 29, 2021; the relocation was completed in June 2022, and as of December 31, 2023, the construction of the sheet piling work was still in progress.

In 2015, the Corporation started to process 3 urban renewal plans located on the land, plot number 316, in the Nangang Section, Taipei City. The application of the urban renewal business plans was completed in June 2015 and the approval was received in October 2020. The public hearing of the transfer of ownership rights was held on November 28, 2020, and the house selection was completed in January 2021. The public hearing was held on May 20, 2022, and the approval letter was received on July 11, 2023. As of December 31, 2023, the relocation was still in progress.

The land development plan for Peibo Section in Tucheng District was approved by the Corporation’s board of directors and authorized for issue on May 13, 2020, and the demolition of the buildings was completed in June 2020; the public hearing was held on April 27, 2021. On May 27, 2022, the change of design was reviewed and completed; the construction license was approved on June 24, 2023. On August 14, 2023, the beam erection ceremony was held, and as of December 31, 2023, the structural work was still in progress.

The Corporation was awarded a tender for the urban renewal of public and private land in No. 290, Dongsheng Section, Shulin District, New Taipei City, on October 13, 2021. The contract with the New Taipei City Government was signed on December 24, 2021; the application for the change of scope was submitted to the Bureau of Finance in December 2022. The house selection was completed on October 25, 2023. As of December 31, 2023, the application was submitted for the urban renewal business plans and transfer of ownership rights.

The board of directors approved the urban renewal project for the land in Section 135-1, Subsection 1, Dunhua Section, Songshan District, Taipei City, on May 11, 2022; The application of the urban renewal business plans was completed on February 24, 2023, and as of December 31, 2023, the house selection was completed.

The Corporation was awarded a tender for the 14 urban renewal plans located on the land in No. 956, Gongguan Section, Banqiao District, New Taipei City, on July 28, 2023. The contract with the National Housing and Urban Regeneration Center was signed on October 25, 2023, and as of December 31, 2023, the plan for the transfer of ownership rights was still in progress.

The Corporation was awarded a tender for the 2 urban renewal plans located on the land in No. 246, Subsection 2, Daan Section, Da’an District, Taipei City, in September 2023. As of December 31, 2023, the public hearing of the urban renewal business plans was held.

As of December 31, 2023 and 2022, the interest expense before capitalization was $379,638 thousand and $228,232 thousand, respectively; the capitalized construction interest was $153,853 thousand and $52,456 thousand, respectively; the capitalization rates per annum were 2.643%-2.658% and 2.053%-2.072%, respectively.

Refer to Note 32 for information about buildings and land held for sale, net pledged as security.

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13. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

Investment in subsidiaries Investment in associates a. Investment in subsidiaries Unlisted ordinary shares Core Pacific World Co., Ltd. BES Machinery Co., Ltd. BES Investment Company Ltd. BES Logistics International Co., Ltd. Core Asia Human Resource Management Corporation Cinemark-Core Pacific, Ltd. Chung Kung Safeguarding & Security Corp. BES Construction Corporation (U.S.A.) BES Global Investment Co. BESM Holding Co., Ltd. Huading Enterprise Co., Ltd. Name of Subsidiaries Core Pacific World Co., Ltd. BES Machinery Co., Ltd. (Notes 1 and 2) BES Investment Company Ltd. BES Logistics International Co., Ltd. Core Asia Human Resource Management Corporation Cinemark-Core Pacific, Ltd. (Notes 2 and 3) Chung Kung Safeguarding & Security Corp. BES Construction Corporation (U.S.A.) BES Global Investment Co. BESM Holding Co., Ltd. (Note 2) Huading Enterprise Co., Ltd. (Note 4)		December 31
		2023 2022 $ 4,946,992 $ 4,399,743 23,893 48,739 $ 4,970,885 $ 4,448,482 December 31
		2023 2022 $ 1,404,066 $ 1,742,545 - - 1,634,210 1,336,679 722,187 730,805 89,037 90,345 318,373 157,468 53,257 52,522 26,811 26,918 17,132 17,488 241,534 244,973 440,385 - $ 4,946,992 $ 4,399,743 Proportion of Ownership and Voting Rights
		December 31
		2023 2022 99.95% 99.95% - - 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 91.76% 78.14% 64.67% 64.67% 91.79% 91.79% 100.00% 100.00% 100.00% 100.00% 90.00% -

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Note 1: In view of Corporation’s organizational adjustment, the board of directors resolved to merge with BES Machinery Co., Ltd. in accordance with the Business Mergers and Acquisitions Act on December 29, 2021. The record date of the merger was March 25, 2022. After the merger, the Corporation was the surviving corporation. Refer to the consolidated financial statements for the year ended December 31, 2023, in Note 31.
Note 2: On March 25, 2022, the Corporation acquired 62.76% of the ownership of Cinemark-Core Pacific, Ltd. and 100% of the ownership of BESM Holding Co., Ltd, through a business merger with BES Machinery Co., Ltd. After the merger, the Corporation holds 78.14% and 100.00% of the above shares, respectively.
Note 3: On March 21, 2023, the Corporation subscribed for additional new shares of Cinemark-Core Pacific, Ltd. by $200,000 thousand at a percentage different from its existing ownership percentage, resulting in its continuing interest increasing from 78.14% to 91.76%. Please refer to Note 31 in the consolidated financial statements for the year ended December 31, 2023.
Note 4: On May 10, 2023, the board of directors of the Corporation resolved to establish Huading Enterprise Co., Ltd. The registration of establishment of Huading Enterprise Co., Ltd. was completed in June 2023. The Corporation held 90% of the equity and exercised control; therefore, the Corporation accounts for it as a subsidiary. Additionally, the Corporation subscribed to additional new shares of Huading Enterprise Co., Ltd. in 2023 for $90 thousand at its existing ownership percentage.
b. Investment in associates

Associates that are not individually material		December	31
		2023 $ 23,893	2022 $ 48,739

Aggregate information of joint ventures that are not individually material:

The Corporation’s share of: Gain (loss) for the year Other comprehensive loss Total comprehensive income for the year	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2023 $ (24,332) (514) $ (24,846)	2022 $ 18,494 (1,063) $ 17,431

On March 25, 2022, the Corporation acquired 23.61% of ownership of HRDD Logistics Co., Ltd. through a business merger with BES Machinery Co., Ltd. It had a significant influence on HRDD Logistics Co., Ltd. and was classified as an associate of the Corporation.

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14. JOINT OPERATIONS

Some of the Corporation’s construction projects are joint construction projects, and the Corporation signed cooperation agreements with participating contractors to form a single operating unit and adopted the operating model of joint contracting and also independently set up accounting records. The joint contractor, construction assets and liabilities and details of the amounts the Corporation made in proportion to its interest in the joint agreements are as follows:

a. Yulon Town Joint Venture

The Corporation and Taiwan Kumagai Co., Ltd. jointly contracted the main construction of the Yulon Town Development Project in the commercial area (the “Yulon Town Joint Venture”), which was entrusted by Yulon Motor Co., Ltd. The Corporation and Taiwan Kumagai Co., Ltd. signed the joint venture contract in December 2018, and had 30% and 70% interest in the joint venture, respectively. The related assets, liabilities, revenue and expenses relating to the joint venture operations in the parent company only financial statements are shown below:

Assets Cash Construction receivables Contract assets - current Other current assets Liabilities Trade payables Accrued expenses Contract liabilities - current Other current liabilities Construction revenue Construction cost Interest income		December 31	December 31
	2023 $ 13,941 - - - $ 13,941 $ 3,702 - 28,780 3,708 $ 36,190 For the Year Ended		2022 $ 67,162 10,997 85,928 2 $ 164,089 $ 702 269 77,110 3,535 $ 81,616 December 31
		2023 $ 19,360 $ 17,928 $ 274	2022 $ 60,042 $ 56,020 $ 86

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b. Twin Tower Joint Venture

The Corporation, Taiwan Kumagai Co., Ltd. (Kumagai) and Jeou Nien Construction Co., Ltd. (Jeou Nien) jointly contracted the main construction of the Taipei City West District Gateway Project, Taipei Station Specific Dedicated Area C1/D1 (East Half Street Profile) Land Development Project, which was entrusted by Taipei Twin Towers Co., Ltd. In May 2022, the Corporation, Kumagai and Jeou Nien signed the joint venture contract and had 33%, 35% and 32% interest in the joint venture, respectively. The assets and liabilities relating to the joint venture operations in the assets and liabilities statements are shown below:

Assets Cash Construction receivables Refundable deposits Other current assets Liabilities Trade payables Accrued expenses Contract liabilities - current Other current liabilities Construction revenue Construction cost Interest income		December 31	December 31
	2023 $ 40,699 3,124 721 68,806 $ 113,350 $ 3,037 8 92,783 8 $ 95,836 For the Year Ended		2022 $ 3,179 14,672 65 2,747 $ 20,663 $ 35 4 3,144 8 $ 3,191 December 31
		2023 $ 165,200 $ 162,910 $ 139	2022 $ 13,401 $ 13,308 $ 9

15. PROPERTY, PLANT AND EQUIPMENT

Freehold Land Cost Balance at January 1, 2022 $ 2,197,639 Additions - Disposals - Transfers from investment properties 226,004 Acquisitions through business combinations 329,828 Transfers to investment properties (40,883) Balance at December 31, 2022$ 2,712,588	Buildings Machinery and Equipment $ 547,759 $ 155,233 1,677 23,666 (38,826 ) (8,005 ) 6,115 - 77,064 543,162 (148,620) - $ 445,169 $ 714,056	Other Equipment Property under Construction Total $ 68,022 $ 9 $ 2,968,662 6,828 8,196 40,367 (2,192 ) - (49,023 ) - - 232,119 14,511 - 964,565 - - (189,503) $ 87,169 $ 8,205 $ 3,967,187 (Continued)

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Freehold Land Accumulated depreciation Balance at January 1, 2022 $ 287 Depreciation expense 299 Disposals - Transfers from investment properties - Acquisitions through business combinations - Transfers to investment properties - Balance at December 31, 2022$ 586 Balance at December 31, 2022, net $ 2,712,002 Cost Balance at January 1, 2023 $ 2,712,588 Additions - Disposals - Reclassifications - Balance at December 31, 2023$ 2,712,588 Accumulated depreciation Balance at January 1, 2023 $ 586 Depreciation expense 237 Disposals - Balance at December 31, 2023$ 823 Balance at December 31, 2023, net $ 2,711,765	Buildings Machinery and Equipment $ 373,897 $ 125,389 14,647 24,018 (38,826 ) (7,192 ) 4,112 - 19,737 442,349 (93,519) - $ 280,048 $ 584,564 $ 165,121 $ 129,492 $ 445,169 $ 714,056 - 172,745 - (11,993 ) 7,327 - $ 452,496 $ 874,808 $ 280,048 $ 584,564 13,246 34,672 - (10,501) $ 293,294 $ 608,735 $ 159,202 $ 266,073	Other Equipment Property under Construction Total $ 52,701 $ - $ 552,274 6,723 - 45,687 (1,973 ) - (47,991 ) - - 4,112 9,322 - 471,408 - - (93,519) $ 66,773 $ - $ 931,971 $ 20,396 $ 8,205 $ 3,035,216 $ 87,169 $ 8,205 $ 3,967,187 10,798 3,633 187,176 (1,981 ) - (13,974 ) - (7,327) - $ 95,986 $ 4,511 $ 4,140,389 $ 66,773 $ - $ 931,971 7,013 - 55,168 (1,854 ) - (12,355 ) $ 71,932 $ - $ 974,784 $ 24,054 $ 4,511 $ 3,165,605 (Concluded)

No impairment assessment was performed for the years ended December 31, 2023 and 2022 as there was no indication of impairment.

Property, plant and equipment are depreciated using the fixed-percentage-on-declining-balance-method and on a straight-line basis over their estimated useful lives as follows:

Land improvements 8-40 years Buildings Main buildings 60 years Air-conditioning equipment 3 years Machinery and equipment 2-13 years Other equipment 2-20 years

Property, plant and equipment pledged as collateral for bank borrowings are set out in Note 32.

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16. LEASE ARRANGEMENTS

a. Right-of-use assets

Carrying amount Land Buildings Transportation equipment Additions to right-of-use assets Decrease in right-of-use assets Depreciation charge for right-of-use assets Land Buildings Transportation equipment		December 31	December 31
	2023 $ 40,355 33,974 39,297 $ 113,626 For the Year Ended		2022 $ 37,813 52,848 26,478 $ 117,139 December 31
		2023 $ 46,655 $ 631 $ 5,577 22,973 20,987 $ 49,537	2022 $ 81,117 $ 4,837 $ 6,729 16,907 16,262 $ 39,898

b. Lease liabilities

Carrying amount Current Non-current		December	31
		2023 $ 51,061 $ 64,981	2022 $ 42,178 $ 76,728

Range of discount rates for lease liabilities was as follows:

Land Buildings Transportation equipment	December 31
	2023 2022 2.10%-2.72% 2.10%-2.72% 2.10%-2.36% 2.10%-2.40% 2.10%-2.72% 2.10%-2.72%

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c. Other lease information

Lease arrangements under operating leases for the leasing out of investment properties are set out in Note 17.

Expenses relating to short-term leases Expenses relating to low-value asset leases Expenses relating to variable lease payments not included in the measurement of lease liabilities Total cash outflow for leases	For the Year Ended	For the Year Ended	December 31
		2023 $ 10,918 $ 473 $ 134,854 $ (198,012)	2022 $ 5,879 $ - $ 132,096 $ (179,839)

The Corporation’s leases of certain office equipment qualify as short-term leases and leases of certain equipment qualify as low-value asset leases. The Corporation has elected to apply the recognition exemption and thus, did not recognize right-of-use assets and lease liabilities for these leases.

17. INVESTMENT PROPERTIES

Cost
Balance at January 1, 2022

Disposals
Transfers from property, plant and equipment
Transfers to property, plant and equipment

Balance at December 31, 2022

Accumulated depreciation
Balance at January 1, 2022

Disposals
Transfers from property, plant and equipment
Depreciation expense
Transfers to property, plant and equipment

Balance at December 31, 2022

Balance at December 31, 2022, net

Cost
Balance at January 1, 2023

Balance at December 31, 2023

Completed
Investment
Properties
$ 1,189,032
(3,447)
189,503

(232,119)
$ 1,142,969
$ 183,321
(3,447)
93,519
4,845

(4,112)
$ 274,126
$ 868,843
$ 1,142,969
$ 1,142,969

(Continued)

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Accumulated depreciation Balance at January 1, 2023 Depreciation expense Balance at December 31, 2023 Balance at December 31, 2023, net	Completed Investment Properties $ 274,126 5,864 $ 279,990 $ 862,979 (Concluded)

No impairment assessment was performed for the years ended December 31, 2023 and 2022 as there was no indication of impairment.

Investment properties are depreciated using the fixed-percentage-on-declining-balance-method and on a straight-line basis over their estimated useful lives as follows:

Land improvements 8-40 years Buildings Main buildings 60 years Air-conditioning equipment 3 years

The maturity analysis of lease payments receivable under operating leases of investment properties as of December 31, 2023 and 2022, respectively, was as follows:

Not later than 1 year Later than 1 year and not later than 5 years		December 31	December 31
		2023 $ 91,821 55,392 $ 147,213	2022 $ 98,713 72,600 $ 171,313

The fair values of investment properties were arrived at on the basis of valuations carried out as of December 2023 and 2022 by independent and qualified professional appraiser. The fair values are shown below:

Fair value		December 31	December 31
		2023 $ 6,486,290	2022 $ 5,591,520

The market for some investment properties of the Corporation is inactive and alternative reliable measurements of fair value are not available; therefore, the Corporation determined that the fair value of the investment properties is not reliably measurable.

The Corporation held freehold interests in all of its investment properties. The carrying amounts of investment properties pledged by the Corporation to secure its borrowings are shown in Note 32.

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18. BORROWINGS

a. Short-term borrowings

Secured borrowings Bank loans Unsecured borrowings Line of credit borrowings		December 31	December 31
		2023 $ 4,781,000 1,000,000 $ 5,781,000	2022 $ 4,089,000 514,000 $ 4,603,000

The short-term borrowings were pledged by some of the Corporation’s bank deposits, shares held by the Corporation, time deposits, buildings and land held for sale, freehold land and buildings. (Refer to Note 32).

The range of weighted average effective interest rate on bank loans was 2.270%-2.983% and 2.050%-2.850% per annum at December 31, 2023 and 2022, respectively.

b. Short-term bills payable

Commercial paper Less: Unamortized discounts on bills payable		December 31	December 31
		2023 $ 1,462,300 (340) $ 1,461,960	2022 $ 1,051,000 (949) $ 1,050,051

Outstanding short-term bills payable were as follows:

December 31, 2023

Promissory Institution Commercial paper Mega Bills Finance Mega Bills Finance Taiwan Finance Corporation December 31, 2022 Promissory Institution Commercial paper Mega Bills Finance Mega Bills Finance Taiwan Finance Corporation	Nominal Amount $ 714,000 450,000 298,300 $ 1,462,300 Nominal Amount $ 500,000 237,000 314,000 $ 1,051,000	Discount Amount Carrying Value Interest Rate Collateral Carrying Value of Collateral $ 107 $ 713,893 2.710% Land and building $ 1,864,733 68 449,932 2.710% Land and building 495,105 165 298,135 2.850% Land and building 892,214 $ 340 $ 1,461,960 Discount Amount Carrying Value Interest Rate Collateral Carrying Value of Collateral $ 305 $ 499,695 2.4400% Note 1 Note 1 264 236,736 2.5000% Note 1 Note 1 380 313,620 2.7200% Note 2 Note 2 $ 949 $ 1,050,051

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Note 1: The loan is collateralized by land and buildings in Xinyi Section 3, Xinyi District, Taipei City with a total book value of $1,828,647 thousand.
Note 2: The loan is collateralized by land and buildings in Xinyi Section 3, Xinyi District, Taipei City and a total of 5,207 thousand shares of Taipei Business Bank with a total book value of $942,379 thousand.

The short-term bills payable were pledged by listed stocks held by the Corporation, buildings and land held for sale, freehold land and buildings. (Refer to Note 32)

c. Long-term borrowings

Secured borrowings Bank loans Unsecured borrowings Bank loans Less: Current portion Long-term borrowings		December 31	December 31
		2023 $ 5,718,177 4,874,939 10,593,116 (623,699) $ 9,969,417	2022 $ 4,368,394 1,403,648 5,772,042 (37,948) $ 5,734,094

The long-term borrowings were pledged by some of the Corporation’s bank deposits, construction in progress, freehold land and buildings and time deposits. (Refer to Note 32)

As of December 31, 2023 and 2022, the effective annual interest rate ranges were 2.240%-3.132% and 2.115%-2.820%, respectively.

19. TRADE PAYABLES

Trade payables Operating		December 31	December 31
		2023 $ 6,361,319	2022 $ 4,288,029

Accounts payable classified as construction retainage received was $2,260,585 thousand as of December 31, 2023 and $1,979,288 thousand as of December 31, 2022. Construction retainage received, which is interest free, will be paid for each construction contract at the end of the construction retainage period. The warranty period is the Corporation’s normal operating cycle, which normally exceeds one year. Related information on construction contracts is shown in Table 1 following the notes to financial statements.

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20. ACCOUNTS PAYABLE FOR THE DEVELOPMENT OF INDUSTRIAL DISTRICTS

Litzer Industrial District Other Industrial Districts		December	31
		2023 $ 3,095 15,963 $ 19,058	2022 $ 2,400 15,963 $ 18,363

Accounts payable (receivable) for the development of industrial districts amounted to $1,632 thousand in 2023 and $37,598 thousand in 2022. The input costs were $937 thousand in 2023 and $5,589 thousand in 2022. The amount of the balance paid in 2022 was $1,995,329 thousand.

21. PROVISIONS

Current Warranties Non-current Long-term provision for the judgment of legal procedures		December 31	December 31
		2023 $ 505,734 $ 930,278	2022 $ 492,541 $ 971,846

The provision for warranty claims represents the present value of management’s best estimate of the future outflow of economic benefits that will be required under the Corporation’s obligations for warranties under contracts for the sale of goods. The estimate has been made on the basis of historical warranty trends.

The long-term provision for the judgment of legal procedures was based on the litigation of the recognition of construction overdue between the management of the Corporation and the owner. To make provisions for contingent losses due to lawsuits which are likely to occur in the future.

22. RETIREMENT BENEFIT PLANS

a. Defined contribution plan

The Corporation adopted a pension plan under the Labor Pension Act (LPA), which is a state-managed defined contribution plan. Under the LPA, the Corporation makes monthly contributions to employees’ individual pension accounts at 6% of monthly salaries and wages.

b. Defined benefit plan

The defined benefit plans adopted by the Corporation in accordance with the Labor Standards Act is operated by the government of the ROC. Pension benefits are calculated on the basis of the length of service and average monthly salaries of the 6 months before retirement. The Corporation contributed at specific rate of salaries (the rate was both 7% for the years ended December 2023 and 2022) and wages to a pension fund administered by the pension fund monitoring committee. Pension contributions are deposited in the Bank of Taiwan in the committee’s name. Before the end of each year, the Corporation assesses the balance in the pension fund. If the amount of the balance in the pension fund is inadequate to pay retirement benefits for employees who conform to retirement requirements in the next year, the Corporation is required to fund the difference in one appropriation that should be made before the end

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of March of the next year. The pension fund is managed by the Bureau of Labor Funds, Ministry of Labor (the “Bureau”); the Corporation has no right to influence the investment policy and strategy.

The amounts included in the parent company only balance sheets in respect of the Corporation’s defined benefit plans were as follows:

Present value of defined benefit obligation Fair value of plan assets Net defined benefit liabilities (assets)		December 31	December 31
		2023 $ 244,250 (247,062) $ (2,812)	2022 $ 270,716 (262,099) $ 8,617

Movements in net defined benefit liabilities (assets) were as follows:

	Present Value		Net Defined	Net Defined
	of the Defined			Benefit
	Benefit	Fair Value of	Liabilities
	Obligation	the Plan Assets		(Assets)
Balance at January 1, 2022	$ 271,058	$ (190,393)	$	80,665
Service cost
Current service cost	5,819	-		5,819
Net interest expense (income)	1,915	(1,352)		563
Recognized in profit or loss	7,734	(1,352)		6,382
Remeasurement
Return on plan assets (excluding amounts
included in net interest)	-	(17,314)		(17,314)
Actuarial (gain) loss
Changes in financial assumptions	(11,025)	-		(11,025)
Experience adjustments	12,576	-		12,576
Recognized in other comprehensive income	1,551	(17,314)		(15,763)
Contributions from the employer	-	(67,832)		(67,832)
Benefits paid	(33,148)	32,861		(287)
Business combination acquisition	23,521	(18,069)		5,452
Balance at December 31, 2022	$ 270,716	$ (262,099)	$	8,617
Balance at January 1, 2023	$ 270,716	$ (262,099)	$	8,617
Service cost
Current service cost	5,526	-		5,526
Net interest expense (income)	3,217	(3,154)		63
Recognized in profit or loss	8,743	(3,154)		5,589
Remeasurement
Return on plan assets (excluding amounts
included in net interest)	-	(1,918)		(1,918)
Actuarial loss
Changes in financial assumptions	919	-		919
Experience adjustments	9,059	-		9,059
Recognized in other comprehensive income	9,978	(1,918)		8,060
Contributions from the employer	-	(17,555)		(17,555)
Benefits paid	(45,187)	37,664		(7,523)
Balance at December 31, 2023	$ 244,250	$ (247,062)	$	(2,812)

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An analysis by function of the amounts recognized in profit or loss in respect of the defined benefit plans is as follows:

Operating costs General and administrative expenses Research and development expenses	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2023 $ 4,540 1,010 39 $ 5,589	2022 $ 5,220 1,118 44 $ 6,382

Through the defined benefit plans under the Labor Standards Act, the Corporation is exposed to the following risks:

1) Investment risk: The plan assets are invested in domestic and foreign equity and debt securities, bank deposits, etc. The investment is conducted at the discretion of the Bureau or under the mandated management. However, in accordance with relevant regulations, the Corporation return generated by plan assets should not be below the interest rate for a 2-year time deposit with local banks.
2) Interest risk: A decrease in the corporate bond interest rate will increase the present value of the defined benefit obligation; however, this will be partially offset by an increase in the return on the plan’s debt investments.
3) Salary risk: The present value of the defined benefit obligation is calculated using the future salaries of plan participants. As such, an increase in the salaries of the plan participants will increase the present value of the defined benefit obligation.

The actuarial valuations of the present value of the defined benefit obligation were carried out by qualified actuaries. The significant assumptions used for the purposes of the actuarial valuations were as follows:

Discount rate(s) Expected rate(s) of salary increase	December 31
	2023 2022 1.20% 1.25% 2.00% 2.00%

If possible reasonable change in each of the significant actuarial assumptions occurs and all other assumptions remain constant, the present value of the defined benefit obligation will increase (decrease) as follows:

Discount rate(s) 0.25% increase 0.25% decrease Expected rate(s) of salary increase 0.25% increase 0.25% decrease		December	31
		2023 $ (4,544) $ 4,670 $ 4,621 $ (4,520)	2022 $ (4,921) $ 5,063 $ 5,013 $ (4,897)

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The sensitivity analysis presented above may not be representative of the actual change in the present value of the defined benefit obligation as it is unlikely that changes in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

Expected contributions to the plans for the next year Average duration of the defined benefit obligation		December	31
		2023 $ 6,386 7 years	2022 $ 7,146 7 years

23. MATURITY ANALYSIS OF ASSETS AND LIABILITIES

The Corporation classified the assets and liabilities of its construction operations and industrial district development projects as current and noncurrent in accordance with the length of the operating cycle of these constructions and projects. The amounts expected to be recovered or settled within 1 year after the reporting period and more than 1 year after the reporting period for related assets and liabilities were as follows:

Assets Financial assets at amortized cost - current Construction receivables Contract assets - current Accounts receivable on the development of industrial districts Inventories Buildings and land held for sale, net Construction in progress Refundable deposits on construction contracts Liabilities Notes payable Trade payables Contract liabilities - current Accounts payable for the development of industrial districts Provisions - current Guarantee deposits on construction contracts		December 31, 2023
		Due Within One Year Due After One Year $ 921,028 $ 565,887 3,573,648 461,197 757,396 4,180,782 - 2,811,621 213,921 - 1,009,424 10,769,519 - 10,578,999 22,371 32,404 $ 6,497,788 $ 29,400,409 $ 13,367 $ - 5,447,736 913,583 2,341,917 1,200,044 - 19,058 61,719 444,015 456,918 304,612 $ 8,321,657 $ 2,881,312	Total $ 1,486,915 4,034,845 4,938,178 2,811,621 213,921 11,778,943 10,578,999 54,775 $ 35,898,197 $ 13,367 6,361,319 3,541,961 19,058 505,734 761,530 $ 11,202,969

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Assets Financial assets at amortized cost - current Construction receivables Contract assets - current Accounts receivable on the development of industrial districts Inventories Buildings and land held for sale, net Construction in progress Refundable deposits on construction contracts Liabilities Notes payable Trade payables Contract liabilities - current Accounts payable for the development of industrial districts Provisions - current Guarantee deposits on construction contracts		December 31, 2022
		Due Within One Year Due After One Year $ 855,766 $ 609,302 2,459,401 143,764 457,875 2,040,666 - 2,898,047 254,843 - 2,178,489 9,650,979 - 4,962,958 117,939 24,223 $ 6,324,313 $ 20,329,939 $ 3,008 $ - 3,549,977 738,052 1,337,986 822,276 - 18,363 68,431 424,110 362,547 212,925 $ 5,321,949 $ 2,215,726	Total $ 1,465,068 2,603,165 2,498,541 2,898,047 254,843 11,829,468 4,962,958 142,162 $ 26,654,252 $ 3,008 4,288,029 2,160,262 18,363 492,541 575,472 $ 7,537,675

24. EQUITY

a. Share capital

Ordinary shares

Shares authorized (in thousands of shares) Shares authorized Shares issued and fully paid (in thousands of shares) Shares issued		December 31	December 31
		2023 3,000,000 $ 30,000,000 1,530,899 $ 15,308,998	2022 3,000,000 $ 30,000,000 1,530,899 $ 15,308,998

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b. Capital surplus

May be used to offset a deficit, distributed as cash dividends, or transferred to share capital (1) Issuance of ordinary shares Treasury share transactions The difference between the consideration received or paid and the carrying amount of the subsidiaries’ net assets during actual disposal or acquisition Changes in net equity of associates accounted for using the equity method Donations May only be used to offset a deficit (2) Changes in percentage of ownership interests in subsidiaries Others		December	31
		2023 $ 11,501 1,757 10,115 4,094 89 12,535 56,430 $ 96,521	2022 $ 11,501 1,757 758 4,094 89 19 56,430 $ 74,648

1) Capital surplus may be used to offset a deficit; in addition, when the Corporation has no deficit, such capital surplus may be distributed as cash dividends, or transferred to share capital (limited to a certain percentage of the Corporation’s capital surplus and to once a year).
2) Capital surplus may be used to offset a deficit only.
c. Retained earnings and dividend policy

According to the Corporation’s Articles of Incorporation, the Corporation distributes share dividends and cash dividends after taking into account its future business needs, capital demand and long-term financial plan. Under the Corporation’s Articles of Incorporation, the Corporation should make appropriations from its net income (less any deficit) in the following order:

1) Paying for taxes in accordance with the laws and regulations.
2) Offsetting losses of previous years.
3) 10% as legal reserve; unless legal reserve equals to the Corporation’s paid-in capital.
4) Setting aside or reversing a special reserve equivalent to the net debit balance of the other components of stockholders’ equity.
5) Of the remainder, together with any unappropriated earnings of prior years, over 20% should be appropriated as dividends.
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6) The appropriation of earnings to be allocated for distribution shall depend on the actual earnings and fund level. The board of directors shall propose a plan for the distribution of the remaining undistributed earnings and the shareholders shall resolve such plan in the shareholders’ meeting for distribution of dividends and bonus to shareholders. Cash dividends shall not be lower than 10% of total dividends. If the amount of dividend is less than $0.10 per share, it shall not be distributed as cash dividend but may be distributed as share dividends.

For policies on distribution of remuneration of employees, directors and supervisors before and after the amendment of the Articles, refer to Note 26 (h) employee benefits expense.

Appropriation of earnings to the legal reserve shall be made until the legal reserve equals the Corporation’s paid-in capital. The legal reserve may be used to offset deficits. If the Corporation has no deficit and the legal reserve has exceeded 25% of the Corporation’s paid-in capital, the excess may be transferred to capital or distributed in cash.

The appropriations of earnings for 2022 and 2021, which had been approved in the Corporation’s shareholders’ meetings on June 7, 2023 and May 31, 2022, respectively, were as follows:

Legal reserve Cash dividends Cash dividends per share (NT$)	Appropriation of Earnings	Appropriation of Earnings	Appropriation of Earnings
	For the Year Ended		December 31
		2022 $ 83,937 $ 805,254 $ 0.526	2021 $ 295,784 $ 817,500 $ 0.534

The appropriations of earnings for 2023, which had been proposed by the Corporation’s board of directors on March 13, 2024, were as follows:

	For the Year	For the Year
		Ended
	December 31,
		2023
Legal reserve	$	84,805
Cash dividends	$	796,068
Cash dividends per share (NT$)	$	0.520

The appropriations of earnings for 2023 is subject to the resolution of the shareholders in the shareholders’ meeting to be held on May 31, 2024.

d. Special reserve

On first-time adoption of IFRS Accounting Standards, the Corporation appropriated for special reserve, the amounts that were the same as the unrealized revaluation increment and cumulative translation differences transferred to retained earnings, which was $2,466,834 thousand.

If the special reserve appropriated on the first-time adoption of IFRS Accounting Standards relates to investment property other than land, the special reserve may be reversed continuously over the period of use. The special reserve relating to land may be reversed on disposal or reclassification.

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e. Other equity items

1) Exchange differences on the translation of the financial statements of foreign operations

Balance at January 1 Recognized for the year Share from associates accounted for using the equity method Actual acquisition of interests in subsidiaries Changes in percentage of ownership interests in subsidiaries Balance at December 31	For the Year Ended	For the Year Ended	December 31
		2023 $ (180,793) (36,762) (1,205) (1,926) $ (220,686)	2022 $ (336,052) 155,544 (285) - $ (180,793)

2) Unrealized valuation gain (loss) on financial assets at FVTOCI

Balance at January 1 Recognized for the year Unrealized gain (loss) - equity instruments Share from associates accounted for using the equity method Cumulative unrealized loss of equity instruments transferred to retained earnings due to disposal Actual acquisition of interests in subsidiaries Balance at December 31	For the Year Ended	For the Year Ended	December 31
		2023 $ (296,350) 63,890 (2,220) (229,720) (689) $ (465,089)	2022 $ 112,261 (260,952) (142,761) (4,629) (269) $ (296,350)

25. REVENUE

Revenue from contracts with customers Construction contract revenue Revenue from sell of properties Revenue from the rendering of services Other operating revenue	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2023 $ 17,227,199 350,526 116,865 38,238 $ 17,732,828	2022 $ 13,473,803 250,194 47,400 112,040 $ 13,883,437

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Contract Balances

	December 31,	December 31,	December 31,
	2023		2022	January 1, 2022
Construction receivables	$ 4,034,845	$	2,603,165	$	2,286,738
Contract assets
Amounts due from customers for construction
contracts	$ 2,770,617	$	733,340	$	792,572
Deposits under construction contracts for
construction receivables	2,167,561		1,765,201		1,666,471
	$ 4,938,178	$	2,498,541	$	2,459,043
Contract liabilities
Amounts due to customers for construction
contracts	$ 3,339,726	$	2,065,899	$	2,627,413
Pre-construction sale	202,235		94,363		106,965
	$ 3,541,961	$	2,160,262	$	2,734,378

The credit risk management of contract assets is the same as trade receivables, related information is shown in Note 10.

26. NET PROFIT

a. Interest income

Financial assets at amortized cost Bank deposits Others Other income Rental income Dividends Others	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
	2023 2022 $ 15,847 $ 7,646 5,089 1,858 17,875 30,846 $ 38,811 $ 40,350 For the Year Ended December 31
		2023 $ 89,186 16,455 457 $ 106,098	2022 $ 77,817 2,427,807 14,571 $ 2,520,195

b. Other income
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c. Other gains and losses

Loan application fee Reversal of compensation loss Gain (loss) on disposal of property, plant and equipment Fair value changes of financial assets and financial liabilities Financial assets mandatorily classified as at FVTPL Gain on lease modification Others	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2023 $ (97,628) 43,411 10,719 106 - 10,544 $ (32,848)	2022 $ (114,590) 13,721 (839) (2,333,852) 85 (86,535) $ (2,522,010)

d. Finance costs

Interest on bank overdrafts and loans Interest on lease liabilities Interest expense incurred on contracts with customers	For the Year Ended	For the Year Ended	December 31
		2023 $ 223,943 1,297 545 $ 225,785	2022 $ 174,158 1,182 436 $ 175,776

Refer to Note 12 for information about capitalized interest.

e. Depreciation

An analysis of amortization by function Operating costs Operating expenses	For the Year Ended	For the Year Ended	December 31
		2023 $ 76,058 28,647 $ 104,705	2022 $ 57,174 28,411 $ 85,585

The depreciation of investment properties, which was recognized in other income - rental income, was $5,864 thousand and $4,845 thousand in 2023 and 2022, respectively.

f. Operating expenses directly related to investment properties

Direct operating expenses of investment properties generating rental income	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2023 $ 2,722	2022 $ 3,295

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g. Employee benefits expense

Short-term benefits Post-employment benefits Defined contribution plan Defined benefit plans Other employee benefits Total employee benefits expense An analysis of employee benefits expense by function Operating costs Operating expenses	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2023 $ 1,179,543 43,628 5,589 49,217 122,655 $ 1,351,415 $ 1,169,939 181,476 $ 1,351,415	2022 $ 916,441 34,488 6,382 40,870 97,637 $ 1,054,948 $ 883,907 171,041 $ 1,054,948

h. Compensation of employees and remuneration of directors and supervisors

According to the Corporation’s Articles, the Corporation accrues compensation of employees and remuneration of directors and supervisors at the rates of no less than 2% and no higher than 2%, respectively, of net profit before income tax, compensation of employees and remuneration of directors and supervisors. The compensation of employees and the remuneration of directors and supervisors for the years ended December 31, 2023 and 2022, which were approved by the Corporation’s board of directors on March 13, 2024 and March 13, 2023, respectively, were as follows:

Accrual rate

For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
2023 2022 2% 2% 2% 2% For the Year Ended December 31
	2023 Cash $ 15,703 $ 15,703	2022
		Cash $ 20,959 $ 20,959

If there is a change in the amounts after the annual parent company only financial statements are authorized for issue, the differences are recorded as a change in the accounting estimate.

There is no difference between the actual amounts of compensation of employees and remuneration of directors and supervisors paid and the amounts recognized in the parent company only financial statements for the years ended December 31, 2022 and 2021.

Information on the compensation of employees and remuneration of directors and supervisors resolved by the Corporation’s board of directors in 2023 and 2022 is available at the Market Observation Post System website of the Taiwan Stock Exchange.

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27. INCOME TAXES

a. Income tax recognized in profit or loss

Major components of income tax expense were as follows:

Current tax Land value increment tax Income tax on unappropriated earnings Adjustments for prior year Deferred tax In respect of the current year Adjustments for prior year Income tax expense recognized in profit or loss	For the Year Ended	For the Year Ended	December 31
		2023 $ 5,565 - 4,391 9,956 119,448 (364) 119,084 $ 129,040	2022 $ 3,872 78,162 (2,357) 79,677 101,833 3,183 105,016 $ 184,693

A reconciliation of accounting profit and current income tax expense is as follows:

Income tax expense calculated at the statutory rate Nondeductible expenses in determining taxable income Tax-exempt income Land value increment tax Income tax on unappropriated earnings Unrecognized deductible temporary differences Adjustments for prior years’ tax Income tax expense recognized in profit or loss Income tax recognized in other comprehensive income Deferred tax In respect of the current year - remeasurement of defined benefit plans	For the Year Ended	For the Year Ended	December 31
	2023 $ 150,752 1,935 (19,022) 5,565 - (14,581) 4,391 $ 129,040 For the Year Ended		2022 $ 201,202 466,770 (563,938) 3,872 78,162 982 (2,357) $ 184,693 December 31
		2023 $ (1,612)	2022 $ 3,153

b. Income tax recognized in other comprehensive income
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c. Deferred tax assets and liabilities

The movements of deferred tax assets and deferred tax liabilities were as follows:

For the year ended December 31, 2023

Deferred Tax Assets Temporary differences Unrealized loss on construction Provision for warranties Defined benefit plans Unrealized loss on doubtful debts Others Loss carryforwards Deferred Tax Liabilities Temporary differences Provision for land value increment tax Foreign investments accounted for using the equity method For the year ended December 31, 2022 Deferred Tax Assets Opening Balance Temporary differences Unrealized loss on construction $ 206,078 Provision for warranties 60,035 Defined benefit plans 19,984 Unrealized loss on doubtful debts - Others 373 Loss carryforwards 250,282 $ 536,752	Opening Balance $ 203,556 66,371 5,816 4,526 314 135,827 $ 416,410 Opening Balance $ 991,342 25,402 $ 1,016,744 Acquisitions Through Business Combinations $ - - 1,085 - 455 - $ 1,540	Recognized in Profit or Loss $ (368) 2,776 (2,376) - 64 (130,290) $ (130,194) Recognized in Profit or Loss $ - (11,110) $ (11,110) Recognized in Profit or Loss $ (2,522) 6,336 (12,100) 4,526 (514) (114,455) $ (118,729)	Recognized in Other Compre hensive Income $ - - 1,612 - - - $ 1,612 Recognized in Other Compre- hensive Income $ - - $ - Recognized in Other Comprehensive Income $ - - (3,153) - - - $ (3,153)	Closing Balance $ 203,188 69,147 5,052 4,526 378 5,537 $ 287,828 Closing Balance $ 991,342 14,292 $ 1,005,634 Closing Balance $ 203,556 66,371 5,816 4,526 314 135,827 $ 416,410
Deferred Tax Assets Temporary differences Unrealized loss on construction Provision for warranties Defined benefit plans Unrealized loss on doubtful debts Others Loss carryforwards

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Deferred Tax Liabilities Temporary differences Provision for land value increment tax Foreign investments accounted for using the equity method	Opening Balance Acquisitions Through Business Combinations Recognized in Profit or Loss Recognized in Other Comprehensive Income Closing Balance $ 991,342 $ - $ - $ - $ 991,342 44,041 (4,926) (13,713) - 25,402 $ 1,035,383 $ (4,926) $ (13,713) $ - $ 1,016,744

d. Deductible temporary differences for which no deferred tax assets have been recognized in the parent company only balance sheets

Deductible temporary differences Impairment of assets Impairment of financial assets Unrealized loss on lawsuits		December 31	December 31
		2023 $ 58,118 38,979 - $ 97,097	2022 $ 58,118 38,979 71,082 $ 168,179

e. Information on unused investment credits, unused loss carryforwards and tax-exemptions

Loss carryforwards as of December 31, 2023 comprised:

Unused Amount	Expiry Year
$ 27,685	2031 (unapproved)

f. Income tax assessments

The income tax returns through 2020 have been assessed by the tax authorities.

28. EARNINGS PER SHARE

The earnings and weighted average number of ordinary shares outstanding used in the computation of earnings per share from continuing operations were as follows:

Net Profit for the Year

Earnings used in the computation of basic earnings per share	For the Year Ended	For the Year Ended	December 31
		2023 $ 624,719	2022 $ 821,315

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Weighted Average Number of Ordinary Shares Outstanding

(In Thousands of Shares)

Weighted average number of ordinary shares outstanding used in the computation of basic earnings per share Effect of potentially dilutive ordinary shares: Compensation of employees Weighted average number of ordinary shares used in the computation of diluted earnings per share	For the Year Ended	For the Year Ended	December 31
		2023 1,530,899 2,400 1,533,299	2022 1,530,899 3,732 1,534,631

The Corporation may settle the compensation of employees in cash or shares; therefore, the Corporation assumes that the entire amount of the compensation will be settled in shares and the resulting potential shares will be included in the weighted average number of shares outstanding used in the computation of diluted earnings per share, as the effect is dilutive. Such dilutive effect of the potential shares is included in the computation of diluted earnings per share until the number of shares to be distributed to employees is resolved in the following year.

29. CAPITAL MANAGEMENT

The Corporation’s capital management strategies, the Corporation plans for future working capital needs, research and development expenses and shareholder expenses based on the current overall economic environment, industry characteristics and future development, to ensure that the Corporation would be able to continue as going concerns with long-term shareholders’ equity and stable operating performance as goal, and to maximize shareholders’ equity.

Management regularly reviews the capital structure and considers the costs and risks involved in different capital structures. The Corporation adopts the conservative risk management strategy by consideration of the industry scale, industry growth and future product roadmaps.

30. FINANCIAL INSTRUMENTS

a. Fair value of financial instruments measured at fair value on a recurring basis
1) Fair value hierarchy

December 31, 2023 Financial assets at FVTPL Mutual funds Financial assets at FVTOCI Investments in equity instruments Listed shares Unlisted shares	Level 1 $ 4,248 $ 2,344,683 - $ 2,344,683	Level 2 $ - $ - 113,162 $ 113,162	Level 3 $ - $ - - $ -	Total $ 4,248 $ 2,344,683 113,162 $ 2,457,845

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December 31, 2022 Financial assets at FVTPL Mutual funds Financial assets at FVTOCI Investments in equity instruments Listed shares Unlisted shares	Level 1 $ 4,142 $ 2,701,504 - $ 2,701,504	Level 2 $ - $ - 104,762 $ 104,762	Level 3 $ - $ - - $ -	Total $ 4,142 $ 2,701,504 104,762 $ 2,806,266

There were no transfers between Levels 1 and 2 in the current and prior year.

2) Reconciliation of Level 3 fair value measurements of financial instruments

For the year ended December 31, 2022

Financial Assets Balance at January 1, 2022 Disposal Recognized in profit or loss (included in other gains and losses) Balance at December 31, 2022	Financial Assets at FVTPL	Financial Assets at FVTPL
		Equity Instruments $ 2,354,728 (21,321) (2,333,407) $ -

3) Valuation techniques and inputs applied for Level 2 fair value measurement

Financial Instruments Unlisted shares Others	Valuation Techniques and Inputs
	Transaction method of market approach. The approach is a valuation strategy that looks at market rations of companies with similar profitability at the end of the reporting periods, while taking the liquidity premium into consideration. Discounted cash flow. Future cash flows are discounted at a rate that reflects current borrowing interest rates of the bond issuers at the end of the year.

4) Valuation techniques and inputs applied for Level 3 fair value measurement

The unlisted equity investment is evaluated using asset-based approach method to calculate the present value of expected gain on investment.

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b. Categories of financial instruments

Financial assets FVTPL Mandatorily classified as at FVTPL Financial assets at amortized cost (Note 1) Financial assets at FVTOCI Equity instruments Financial liabilities Amortized cost (Note 2)	December 31
	2023 2022 $ 4,248 $ 4,142 10,282,692 9,047,157 2,457,845 2,806,266 26,817,395 17,784,035

Note 1: The balances include financial assets at amortized cost, which comprise cash, financial assets at amortized cost, construction receivables, refundable deposits on construction contracts, other receivables (included in other current assets) and refundable deposits.
Note 2: The balances include financial liabilities at amortized cost, which comprise short-term borrowings, short-term bills payable, notes payable, trade payables, guarantee deposits on construction contracts, long-term borrowings (expired in one year), provisions and guarantee deposits received.

c. Financial risk management objectives and policies

The Corporation’s major financial instruments included equity investments, notes receivable, trade receivables, construction receivables, accounts receivable on the development of industrial districts, notes payable, trade payables, borrowings and lease liabilities. The Corporation’s corporate treasury function provides services to the business, coordinates access to domestic and international financial markets, and monitors and manages the financial risks relating to the operations of the Corporation through internal risk reports that analyze exposures by degree and magnitude of risks. These risks include market risk (including foreign currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

1) Market risk

The Corporation’s activities exposed it primarily to the financial risks of changes in foreign currency exchange rates (see (a) below) and interest rates (see (b) below).

a) Foreign currency risk

The carrying amounts of the Corporation’s foreign currency denominated monetary assets and monetary liabilities at the end of the reporting period are set out in Note 33.

Sensitivity analysis

The Corporation is mainly exposed to the RMB and HKD.

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The following table details the Corporation’s sensitivity to a 5% increase and decrease in the New Taiwan dollar (the functional currency) against the relevant foreign currencies. The sensitivity rate of 5% is used when reporting foreign currency risk internally to key management personnel and represents management’s assessment of the reasonably possible change in foreign exchange rates. A positive number below indicates an increase in pre-tax equity when New Taiwan dollar strengthened by 5% against the relevant currency. For a 5% weakening of New Taiwan dollar against the relevant currency, there would be an equal and opposite impact on pre-tax equity and the balances below would be negative.

Equity	RMB Impact For the Year Ended December 31 2023 2022 $ 50,237 $ 52,100	HKD Impact
		For the Year Ended December 31
		2023 2022 $ 81,710 $ 66,834

b) Interest rate risk

The Corporation is exposed to interest rate risk because the Corporation borrow funds at both fixed and floating interest rates.

The carrying amounts of the Corporation’s financial assets and financial liabilities with exposure to interest rates at the end of the reporting period were as follows:

Fair value interest rate risk Financial assets Financial liabilities Cash flow interest rate risk Financial assets Financial liabilities	December 31
	2023 2022 $ 1,304,909 $ 1,301,297 1,578,002 1,168,957 4,746,419 4,910,528 16,374,116 10,375,042

The Corporation was exposed to fair value interest rate risk in relation to fixed-rate certificates of deposit, short-term bills payable and lease liabilities.

The Corporation was also exposed to cash flow interest rate risk in relation to variable-rate bank borrowings. The Corporation’s cash flow interest rate risk is mainly concentrated in the fluctuation of the benchmark interest rate arising from the Corporation’s New Taiwan dollar denominated borrowings.

Sensitivity analysis

The sensitivity analysis below was determined based on the Corporation’s exposure to interest rates for both derivatives and non-derivative instruments at the end of the reporting period. For floating rate liabilities, the analysis was prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding for the whole year. A sensitivity rate of 1% increase or decrease was used when reporting interest rate risk internally to key management personnel and represented management’s assessment of the reasonably possible change in interest rates.

If interest rates had been 1% higher and all other variables were held constant, the Corporation’s pre-tax profit for the years ended December 31, 2023 and 2022 would decrease by $116,277 thousand and $54,645 thousand, respectively. The Corporation’s sensitivity to interest rates increased during the current period mainly due to the increase in variable rate borrowings.

59 -
c) Other price risk

The Corporation was exposed to equity price risk through its investments in listed equity securities and mutual funds.

Sensitivity analysis

The sensitivity analysis below was determined based on the exposure to equity price risks at the end of the reporting period.

If the equity prices had been 5% higher, the Corporation’s pre-tax other comprehensive income for the years ended December 31, 2023 and 2022 would have increased by $122,892 thousand and $140,313 thousand, respectively.

2) Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in a financial loss to the Corporation. At the end of the year, the Corporation’s maximum exposure to credit risk, which would cause a financial loss to the Corporation due to the failure of the counterparty to discharge its obligation by the counterparties or the financial guarantees provided by the Corporation, could be equal to the total of the following:

a) The carrying amount of the respective recognized financial assets as stated in the condensed balance sheets.
b) The amount of contingent liabilities generated from financial guarantees that the Corporation provided.

The Corporation adopted a policy of only dealing with creditworthy counterparties. The Corporation’s exposure and the credit ratings of its counterparties are continuously monitored, and the aggregate value of transactions concluded is spread amongst approved counterparties.

3) Liquidity risk

The Corporation manages liquidity risk by monitoring and maintaining a level of cash and cash equivalents deemed adequate to finance the Corporation’s operations and mitigate the effects of fluctuations in cash flows. In addition, management monitors the utilization of bank borrowings and ensures compliance with loan covenants.

The Corporation relies on bank borrowings and short-term bills payable as a significant source of liquidity. As of December 31, 2023 and 2022, the Corporation had available unutilized short-term bank loan facilities were shown as below:

Unsecured bank overdraft facilities, reviewed annually and payable on demand: Amount used Amount unused		December 31	December 31
		2023 $ 5,874,939 6,280,809 $ 12,155,748	2022 $ 1,917,648 4,641,950 $ 6,559,598 (Continued)

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Secured bank overdraft facilities: Amount used Amount unused		December 31	December 31
		2023 $ 11,961,137 11,676,000 $ 23,637,137	2022 $ 9,507,445 13,703,000 $ 23,210,445 (Concluded)

Liquidity and interest rate risk table for non-derivative financial liabilities

The following table details the Corporation’s remaining contractual maturities for its non-derivative financial liabilities with agreed repayment periods. The table has been drawn up based on the undiscounted cash flows of financial liabilities from the earliest date on which the Corporation can be required to pay. The table includes both interest and principal cash flows. Specifically, bank loans with a repayment on demand clause were included in the earliest time band regardless of the probability of the banks choosing to exercise their rights. The maturity dates for other non-derivative financial liabilities were based on the agreed repayment dates.

To the extent that interest flows are at floating rate, the undiscounted amount was derived from the interest rate curve at the end of the year.

December 31, 2023

Weighted Average Effective Interest Rate (%) Non-derivative financial liabilities Non-interest bearing liabilities Lease liabilities 2.100-2.720 Variable interest rate liabilities 2.240-3.132 Fixed interest rate liabilities 2.710-2.850 December 31, 2022 Weighted Average Effective Interest Rate (%) Non-derivative financial liabilities Non-interest bearing liabilities Lease liabilities 2.100-2.720 Variable interest rate liabilities 2.050-2.850 Fixed interest rate liabilities 2.440-2.720	On Demand or Less than 1 Month $ 1,735,221 4,569 2,244,895 1,462,300 $ 5,446,985 On Demand or Less than 1 Month $ 1,028,495 3,720 23,928 1,051,000 $ 2,107,143	1-3 Months $ 2,991,391 8,999 1,456,438 - $ 4,456,828 1-3 Months $ 1,657,289 7,223 606,418 - $ 2,270,930	3 Months to 1 Year $ 734,448 37,536 3,060,288 - $ 3,832,272 3 Months to 1 Year $ 867,202 31,249 4,211,928 - $ 5,110,379	1-5 Years $ 799,795 52,771 10,339,256 - $ 11,191,822 1-5 Years $ 649,767 66,603 5,982,965 - $ 6,699,335	5+ Years $ 113,831 19,546 46,786 -
					$ 180,163
					5+ Years $ 88,284 18,073 65,812 -
					$ 172,169

61 -

31. TRANSACTIONS WITH RELATED PARTIES

Details of transactions between the Corporation and related parties are disclosed below:

a. Related party name and categories

Related Party Name

Related Party Categories

China Petrochemical Development Corporation Legal directors of the Corporation and its subsidiaries HRDD Logistics Co., Ltd. Associates Core Pacific City Co., Ltd. Related party of the Corporation (Note 1) Glory Construction Co., Ltd. Related party of the Corporation Cheng Yao Enterprise Co., Ltd. Related party of the Corporation Yunheyue Agriculture Co., Ltd. Related party in substance Sheen Chuen-Chi Cultural & Education Foundation Related party in substance Core Pacific Marketing Corporation Related party in substance Tsou Seen Chemical Industries Corporation Subsidiary of legal directors of the Corporation BES Twin Towers Development Co., Ltd. Subsidiary of legal directors of the Corporation Ding Yue Development Co., Ltd. Subsidiary of legal directors of the Corporation BES Machinery Co., Ltd. Subsidiary (Note 2) Chung Kung Safeguarding & Security Corp. Subsidiary Chung Kung Management Consultant Co., Ltd. Subsidiary Chung Kung Management and Maintenance of Subsidiary Apartment Co., Ltd. Cinemark-Core Pacific Co., Ltd. Subsidiary Core Asia Human Resources Management Co., Ltd. Subsidiary Elite Human Resources Management Co., Ltd. Subsidiary BES Engineering Vietnam Company Limited Subsidiary Huading Enterprise Co., Ltd. Subsidiary

Note 1: Core Pacific City Co., Ltd. was an associate until May 24, 2022.

Note 2: On March 25, 2022, the Corporation merge with its subsidiary, BES Machinery Co., Ltd.

b. Trading transactions and other transactions with related parties

Line Items Related Party Categories Operating revenue Legal directors of the Corporation Subsidiaries Operating costs Subsidiaries Related parties of the Corporation Operating expenses Related parties in substance Related parties of the Corporation Subsidiaries Legal directors of the Corporation		December 31	December 31
		2023 $ 38,727 493 $ 39,220 $ 127,034 3,209 $ 130,243 $ 11,097 7,466 6,244 - $ 24,807	2022 $ 5,098 411 $ 5,509 $ 317,347 2,830 $ 320,177 $ 10,000 5,753 6,156 220 $ 22,129

62 -

The prices and terms of the transactions with related parties are determined based on the contracts.

c. Receivables from related parties

Line Items Related Party Categories Construction receivables Legal directors of the Corporation Other receivables Related parties of the Corporation (included in other Related parties in substance current assets) Subsidiaries		December 31	December 31
		2023 $ 19,703 $ 505 - - $ 505	2022 $ 1,240 $ 505 616 43 $ 1,164

The outstanding trade receivables from related parties are unsecured. For the years ended December 31, 2023 and 2022, no impairment loss was recognized for trade receivables from related parties.

d. Payables to related parties

Line Items Related Party Categories Trade payables Subsidiaries Accrued expenses Subsidiaries Related parties of the Corporation Legal directors of the Corporation Related parties in substance		December 31	December 31
		2023 $ 12,646 $ 1,963 965 650 40 $ 3,618	2022 $ 8,585 $ 1,511 965 650 - $ 3,126

The outstanding trade payables from related parties are unsecured and will be settled in cash.

e. Prepayments (included in other current assets)

Related Party Categories Related parties in substance		December 31	December 31
		2023 $ 113,619	2022 $ -

f. Contract liabilities

The contract liabilities as of December 31, 2023 and 2022, respectively, were as follows:

December 31, 2023

Related Party Name Engineering Code Total Amount of Construction China Petrochemical Development Corporation A6E $ 1,528,593	Contract Liabilities $ 30,727

63 -

December 31, 2022

Related Party Name Engineering Code Total Amount of Construction China Petrochemical Development Corporation A6E $ 1,528,593	Contract Liabilities $ 24,966

The construction contracts and engineering payment conditions with related parties were made at terms comparable to those with similar unrelated parties.

g. Lease arrangements

For the Year Ended	For the Year Ended	December 31
	2023 2022 $ - $ 21,574 - 32,598 $ - $ 54,172 December 31
2023 $ 18,991 17,162 9,756 $ 45,909 For the Year Ended		2022 $ 20,528 27,711 16,897 $ 65,136 December 31
	2023 $ 481 463 286 - $ 1,230	2022 $ 333 505 274 20 $ 1,132

h. Acquisition of financial assets

For the year ended December 31, 2022

Related Party Names Line Item Number of Shares China Petrochemical Development Corporation Financial assets at FVTOCI - non-current 58,649,685	Underlying Assets Purchase Price Stock China Petrochemical Development $ 689,134

64 -

Note: The Corporation held individually the abovementioned investments that participated in China Petrochemical Development’s seasoned equity offering.

i. Disposal of financial assets

For the year ended December 31, 2022

Related Party Names Line Item Number of Shares Glory Construction Co., Ltd. Financial assets at FVTPL 1,538,484	Underlying Assets Stock Core Pacific City Co., Ltd.	Disposal Price Disposal (Loss) Gain $ 21,321 $ (64)

j. Loans to related parties

As of December 31, 2023, the receivable and interest receivable of the Corporation from associates HRDD Logistics Co., Ltd. were $21,550 thousand and $1,078 thousand, respectively. After evaluating the operating condition and the probability of collecting the accounts of the HRDD Logistics Co., Ltd., the Corporation recorded an allowance for doubtful accounts of $22,628 thousand for the above-mentioned in September 2022.

Interest income

Related Party Categories Subsidiaries Associates	For the Year Ended	For the Year Ended	December 31
		2023 $ - - $ -	2022 $ 339 713 $ 1,052

The Corporation provided with short-term loan at rates comparable to market interest rates.

k. Other transactions with related parties

Interest income, rental revenue and other income are as follows:

Related Party Categories Subsidiaries of legal directors of the Corporation Related parties in substance Related parties of the Corporation Legal directors of the Corporation Subsidiaries Associates	For the Year Ended	For the Year Ended	December 31
		2023 $ 21,753 7,512 5,932 5,664 3,701 - $ 44,562	2022 $ 15,297 7,046 5,877 19,071 1,215 51 $ 48,557

65 -

The transactions with related parties were made at prices and terms comparable to those for similar transactions with unrelated parties. That is, the prices and terms for sales and purchases as well as conditions for warranties, payment and other transactions with related parties were similar to those for transactions with unrelated parties. Other receivables from related parties generated from the sale of construction equipment, steel plates, and rent.

Endorsements and guarantees are as follows:

Refundable deposits by related parties

Related Party Categories Related parties of the Corporation Related parties in substance		December 31	December 31
		2023 $ 637 238 $ 875	2022 $ 637 - $ 637

Guarantee deposits received by related parties

Related Party Categories Subsidiaries Other payables (included in other current liabilities) by related parties	December 31	December 31
	2023 2022 $ 56 $ 56 December 31
Related Party Categories Subsidiaries of legal directors of the Corporation
	2023 $ 28,571	2022 $ 28,571

l. Remuneration of key management personnel

The remuneration of directors and other members of key management personnel was as follows:

Short-term employee benefits Post-employment benefits	For the Year Ended	For the Year Ended	December 31
		2023 $ 40,780 12,168 $ 52,948	2022 $ 46,141 - $ 46,141

The remuneration of directors and key executives, as determined by the remuneration committee, was based on the performance of individuals and market trends.

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32. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

The following assets had been mortgaged as collateral for long- and short-term bank loans, short-term bills payable, performance guarantees, construction warranties and lawsuits:

Financial assets at FVTOCI - current Financial assets at amortized cost - current Buildings and land held for sale, net Construction in progress Financial assets at FVTOCI - non-current Property, plant and equipment, net Investment properties, net		December 31	December 31
		2023 $ 528,820 4,078,982 4,924,977 1,244,634 1,486,750 1,699,286 794,632 $ 14,758,081	2022 $ 800,401 3,469,342 4,855,276 1,244,634 1,454,089 1,487,667 813,624 $ 14,125,033

33. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

The Corporation’s significant financial assets and liabilities denominated in foreign currencies aggregated by the foreign currencies other than function currencies of the entities in the Corporation and the related exchange rates between the foreign currencies and the respective functional currencies were as follows:

December 31, 2023

		Foreign		Carrying
		Currency		Amount
	(In Thousands)		Exchange Rate	(In Thousands)
Financial assets
Non-monetary items
Investments accounted for using the equity
method
RMB	$	232,204	4.327 (RMB:NTD)	$ 1,004,746
HKD		415,935	3.929 (HKD:NTD)	1,634,210
December 31, 2022
		Foreign		Carrying
		Currency		Amount
	(In Thousands)		Exchange Rate	(In Thousands)
Financial assets
Non-monetary items
Investments accounted for using the equity
method
RMB	$	236,390	4.408 (RMB:NTD)	$ 1,042,005
HKD		339,431	3.938 (HKD:NTD)	1,336,679

67 -

For the years ended December 31, 2023 and 2022, realized and unrealized net foreign exchange gains were $928 thousand and $1,972 thousand, respectively. It is impractical to disclose net foreign exchange gains (losses) by each significant foreign currency due to the variety of the foreign currency transactions and functional currencies of the entities in the Corporation.

34. OTHER ITEMS

Regarding the investigation result of “the renovation turnkey project of Gongguan military installations and camps” which is contracted by the Corporation, Taiwan New Taipei District Court Prosecutors Office prosecuted against the former chairman of the Corporation, Shen Jun, and the other two individuals in accordance with the Securities and Exchange Act and Anti-Corruption Act. For this reason, the Ministry of National Defense sent a letter to recover the bid bond of $50,000 thousand for the “the renovation turnkey project of Gongguan military installations and camps” on September 30, 2021, and the amount of compensation was recognized in other losses (included in other gains and losses) and paid on October 18, 2021. In order to ensure that the rights and interests were not infringed, the Corporation filed a lawsuit for damages and other remedies in the Taipei District Court of Taiwan on October 21, 2021 against the former chairman of the Corporation, Shen Jun, and the other two individuals. However, the financial and business operations have not been significantly affected by the aforementioned events. As of March 13, 2024, the case is still pending in the court.

On October 12, 2023, the Corporation entered into a letter of intent to pre-purchase building and parking spaces with Cloud Network Technology Singapore Pte. Ltd. at a total transaction price of approximately $7,549,580 thousand. As of March 13, 2024, a sale contract has not yet been signed for the above transaction. The Corporation was received an earnest deposit of $337,479 thousand (included in guarantee deposits received).

35. SEPARATELY DISCLOSED ITEMS

a. Information about significant transactions and investees:
1) Financing provided to others. (Table 2)
2) Endorsements/guarantees provided. (Table 3)
3) Marketable securities held (excluding investment in subsidiaries, associates and joint controlled entities). (Table 4)
4) Marketable securities acquired or disposed of at costs or prices at least $300 million or 20% of the paid-in capital. (Table 5)
5) Acquisition of individual real estate at costs of at least $300 million or 20% of the paid-in capital. (Non-applicable)
6) Disposal of individual real estate at prices of at least $300 million or 20% of the paid-in capital. (Non-applicable)
7) Total purchases from or sales to related parties amounting to at least $100 million or 20% of the paid-in capital. (Non-applicable)
8) Receivables from related parties amounting to at least $100 million or 20% of the paid-in capital. (Non-applicable)
9) Trading in derivative instruments. (Non-applicable)
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b. Information on investees (Table 6)
c. Information on investments in mainland China

Information on any investee company in mainland China, showing the name, principal business activities, paid-in capital, method of investment, inward and outward remittance of funds, ownership percentage, net income of investees, investment income or loss, carrying amount of the investment at the end of the period, repatriations of investment income, and limit on the amount of investment in the mainland China area. (Table 7)

d. Information of major shareholders: List all shareholders with ownership of 5% or greater showing the name of the shareholder, the number of shares owned, and percentage of ownership of each shareholder (Table 8)
69 -

TABLE 1

BES ENGINEERING CORPORATION

CONTRACT ASSETS, CONTRACT LIABILITIES AND AMOUNTS DUE TO CUSTOMERS FOR CONSTRUCTION CONTRACTS FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022

(In Thousands of New Taiwan Dollars)

Contract assets - amounts due from customers for construction contracts

December 31, 2023

								Accumulated	Accumulated
	Estimated Year of	Total Amount of		Estimated Cost of				Construction Profit				Net	Amount of
Engineering Station Code	Completion	Construction		Construction	Contract Assets		% of Completion		(Loss)	Contract Liabilities		Contract Assets
A8B	2031	$ 11,083,081		$ 10,432,926	$	4,534,709	30.27	$	196,828	$	3,583,895	$	950,814
B1C	2025		4,274,286	3,910,496		1,967,451	37.26		135,559		1,592,744		374,707
B1D	2029		4,921,084	4,663,765		1,280,525	17.56		45,193		932,992		347,533
A6B-1	2025		3,204,567	3,088,361		2,702,135	73.54		85,458		2,383,424		318,711
B0B	2026		5,657,143	5,231,931		1,240,596	16.66		70,853		942,649		297,947
B1H-1	2026		5,840,421	5,371,139		960,016	12.30		57,717		718,312		241,704
A5C	2024		4,045,280	4,199,542		2,863,624	62.81		(154,262)		2,682,688		180,936
B1E	2026		1,944,445	1,788,209		113,835	4.33		6,765		84,194		29,641
A7D	2023		2,487,369	2,382,229		2,506,679	100.00		105,140		2,487,370		19,309
B2E	2027		4,429,353	4,057,131		10,115	0.02		67		800		9,315
		$ 47,887,029		$ 45,125,729	$	18,179,685		$	549,318	$	15,409,068	$	2,770,617

December 31, 2022

							Accumulated	Accumulated
	Estimated Year of	Total Amount of	Estimated Cost of				Construction Profit				Net	Amount of
Engineering Station Code	Completion	Construction	Construction	Contract Assets		% of Completion		(Loss)	Contract Liabilities		Contract Assets
A8B	2031	$ 10,940,606	$ 10,328,523	$	3,151,240	24.34	$	148,975	$	2,803,051	$	348,189
A6B-1	2024	3,226,270	3,117,087		2,202,995	61.10		66,713		2,009,439		193,556
B0A	2025	4,363,847	4,071,455		533,215	10.10		29,517		469,578		63,637
A8F-1	2024	3,860,476	3,642,447		1,944,597	48.73		106,241		1,881,121		63,476
A5C	2023	3,959,898	4,123,444		2,338,660	53.08		(163,546)		2,292,247		46,413
B0B	2026	5,657,143	5,284,292		293,402	5.00		18,650		282,998		10,404
B0C	2024	2,587,944	2,414,535		251,608	9.29		16,108		245,161		6,447
B1B-1	2027	292,130	283,366		9,271	0.64		56		8,053		1,218
		$ 34,888,314	$ 33,265,149	$	10,724,988		$	222,714	$	9,991,648	$	733,340
												(Continued)

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Contract liabilities - amounts due to customers for construction contracts

December 31, 2023

									Accumulated	Accumulated
	Estimated Year of	Total Amount of		Estimated Cost of					Construction Profit				Net	Amount of
Engineering Station Code	Completion	Construction		Construction		Contract Assets		% of Completion		(Loss)	Contract Liabilities		Contract Liabilities
A7A	2024	$	4,577,950	$	4,283,557	$	2,340,197	91.40, 32.65	$	168,388	$	3,042,826	$	702,629
A8C	2024		8,843,039		8,340,823		8,032,744	96.05		482,363		8,510,441		477,697
A6E	2024		2,312,393		2,196,754		1,774,426	73.51, 100.00,		93,898		2,059,697		285,271
								100.00, 39.43
A9A	2029		13,490,863		12,546,969		3,637,924	27.08		255,597		3,912,034		274,110
A7B-1	2031		10,568,036		9,845,479		2,800,417	28.84		208,371		3,047,586		247,169
A8F-1	2024		4,154,602		3,908,471		3,133,857	79.01		194,468		3,344,274		210,417
A8F-2	2025		1,723,810		1,592,412		571,828	41.54		54,576		715,984		144,156
A6F	2023		1,763,885		1,637,084		1,632,130	100.00		126,801		1,763,885		131,755
A0B	2023		14,150,183		16,331,372		14,033,339	100.00		(2,181,189)		14,150,183		116,844
B0C	2024		2,690,868		2,483,579		999,710	40.75		84,462		1,113,467		113,757
A7B-2	2028		610,089		518,517		125,713	37.25		34,108		227,238		101,525
A6C	2023		3,600,872		3,687,601		3,499,448	99.42		(86,729)		3,581,963		82,515
B2A	2029		4,283,756		3,939,902		51,048	0.90		3,105		124,325		73,277
A8F-3	2023		226,170		203,473		160,753	100.00		22,697		226,170		65,417
B1B-1	2028		4,930,610		4,864,329		70,486	2.68		1,777		132,200		61,714
A7F	2023		3,569,633		3,372,332		3,324,459	94.51		186,463		3,381,784		57,325
A7C	2023		2,079,969		1,958,592		2,042,251	99.96		121,324		2,079,044		36,793
B1F	2025		1,030,885		948,027		109,987	13.93		11,543		143,616		33,629
B1B-2	2027		3,201,697		3,159,875		15,333	1.45		606		46,402		31,069
A7E	2023		1,065,251		994,259		1,036,471	100.00		70,992		1,065,251		28,780
B0A	2025		4,652,352		4,303,168		1,212,393	25.62		89,461		1,236,339		23,946
93C	2023		711,143		850,234		675,960	97.47		(139,091)		693,668		17,708
A6D	2023		2,951,138		2,817,999		2,935,129	99.97		133,092		2,950,137		15,008
B1H-2	2025		65,948		60,648		699	12.00		636		7,914		7,215
A4C	2023		758,642		780,812		758,642	100.00		(22,170)		758,642		-
A6B-2	2023		3,485,574		3,050,564		3,485,574	100.00		435,010		3,485,574		-
			101,499,358		98,676,832		58,460,918			350,559		61,800,644		3,339,726
750			-		-		20,738,595			-		20,738,595		-
		$	101,499,358	$	98,676,832	$	79,199,513		$	350,559	$	82,539,239	$	3,339,726
														(Continued)

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December 31, 2022

									Accumulated	Accumulated
	Estimated Year of	Total Amount of		Estimated Cost of					Construction Profit				Net	Amount of
Engineering Station Code	Completion	Construction		Construction		Contract Assets		% of Completion		(Loss)	Contract Liabilities		Contract Liabilities
A7A	2024	$	4,441,091	$	4,168,354	$	1,719,671	5.44, 89.00	$	111,066	$	2,227,933	$	508,262
A8C	2023		8,260,537		7,807,097		6,485,517	82.50		374,097		6,863,935		378,418
A6F	2022		1,884,877		1,749,236		1,564,807	94.68		128,418		1,788,541		223,734
A6D	2022		2,950,137		2,817,045		2,787,512	100.00		133,092		2,950,137		162,625
A9A	2028		12,563,670		11,724,146		1,817,884	14.70		123,368		1,962,514		144,630
A6E	2024		2,168,593		2,069,633		1,543,484	21.87, 97.23, 100.00		59,137		1,638,277		94,793
A7B-2	2028		610,089		519,220		110,533	31.82		28,910		194,101		83,568
A7C	2022		2,078,956		1,957,705		1,992,035	99.57		120,727		2,069,969		77,934
A7E	2022		1,051,147		981,237		968,782	99.50		69,560		1,045,892		77,110
A7F	2023		3,542,443		3,349,663		3,029,263	87.01		167,734		3,098,721		69,458
A8F-2	2025		1,723,810		1,608,342		161,244	12.82		14,803		220,992		59,748
A6B-2	2022		3,485,574		3,066,504		3,435,574	100.00		419,070		3,485,574		50,000
A7D	2022		2,487,370		2,354,230		2,440,431	100.00		133,140		2,487,370		46,939
B1D	2026		2,937,716		2,823,628		16,406	1.81		2,065		53,180		36,774
A7B-1	2031		13,509,028		12,696,909		2,071,222	15.50		125,911		2,097,157		25,935
A6C	2023		3,552,046		3,644,781		3,271,280	91.80		(92,735)		3,286,848		15,568
B1C	2025		4,274,286		3,967,448		23,959	0.70		2,154		30,000		6,041
B1B-2	2027		177,247		171,930		986	0.70		37		5,348		4,362
A0B	2022		14,008,614		16,181,381		14,007,326	99.99		(2,172,767)		14,007,326		-
98C-1	2022		3,754,159		3,615,234		-	100.00		138,925		-		-
93C	2022		690,775		830,149		673,300	97.47		(139,374)		673,300		-
A5B	2022		562,934		540,448		-	100.00		22,486		-		-
A4C	2022		758,642		778,998		758,642	100.00		(20,356)		758,642		-
			91,473,741		89,423,318		48,879,858			(250,532)		50,945,757		2,065,899
750			-		-		20,738,595			-		20,738,595		-
		$	91,473,741	$	89,423,318	$	69,618,453		$	(250,532)	$	71,684,352	$	2,065,899

(Concluded)

72 -

TABLE 2

BES ENGINEERING CORPORATION AND SUBSIDIARIES

FINANCING PROVIDED TO OTHERS FOR THE YEAR ENDED DECEMBER 31, 2023 (In Thousands of New Taiwan Dollars)

No.	Financing Company	Counterparty	Financial Statement Account	Related Party	Financing Limit for Each Borrowing Company (Note 1)	Ending Balance (Note 1)	Actual Used	Interest Rate	Financing Properties (Note 2)	Financing Amount	Financing Reasons	Allowance for Bad Debt	Collateral	Collateral	Maximum Limit for Each Counterparty	Financing Company’s Financing Amount Limits	Note
													Item	Value
0	BES Engineering Corporation	HRDD Logistics Co., Ltd.	Accounts receivable - related party	Y	$ 21,550	$ 21,550	$ 21,550	5	b.	$ -	Business revolving fund	$ 21,550	-	$ -	$ 898,434 (4% of BES Engineering Corporation’s net equity)	$ 8,984,342 (40% of BES Engineering Corporation’s net equity)	Note 2
1	Chung Kung Safeguarding & Security Corp.	Chung Kung Management Consultant Co., Ltd. Chung Kung Management and Maintenance of Apartment Co., Ltd.	Accounts receivable - related party Accounts receivable - related party	Y Y	15,000 15,000	15,000 15,000	- 7,000	- 3	b. b.	- -	Business revolving fund Business revolving fund	- -	- -	- -	32,940 (40% of Chung Kung Safeguarding & Security Corp.’s net equity) 32,940 (40% of Chung Kung Safeguarding & Security Corp.’s net equity)	32,940 (40% of Chung Kung Safeguarding & Security Corp.’s net equity) 32,940 (40% of Chung Kung Safeguarding & Security Corp.’s net equity)
2	Cinemark-Core Pacific, Ltd.	Cinema 7 Theater Co., Ltd.	Accounts receivable - related party	Y	30,000	30,000	-	3	b.	-	Business revolving fund	-	-	-	138,784 (40% of Cinemark-Core Pacific, Ltd.’s net equity)	138,784 (40% of Cinemark-Core Pacific, Ltd.’s net equity)
		Agora Garden Co., Ltd.	Other receivable	Y	100,000	-	-	3.5	b.	-	Business revolving fund	-	-	-	138,784 (40% of Cinemark-Core Pacific, Ltd.’s net equity)	138,784 (40% of Cinemark-Core Pacific, Ltd.’s net equity)

Note 1: Financing limits approved by the board of directors.
Note 2: Reasons for financing are as follows:
a. Business relationship.
b. The need for short-term financing.
73 -

TABLE 3

BES ENGINEERING CORPORATION AND SUBSIDIARIES

ENDORSEMENTS/GUARANTEES PROVIDED FOR THE YEAR ENDED DECEMBER 31, 2023 (In Thousands of New Taiwan Dollars)

No.	Endorser/Guarantor	Endorsee/Guarantee	Endorsee/Guarantee	Limits on Endorsement/ Guarantee Given on Behalf of Each Party	Maximum Amount Endorsed/ Guaranteed During the Period	Outstanding Endorsement/ Guarantee at the End of the Period	Actual Borrowing Amount	Amount Endorsed/ Guaranteed by Collaterals	Ratio of Accumulated Endorsement/ Guarantee to Net Equity in Latest Financial Statements (%)	Aggregate Endorsement/ Guarantee Limit	Endorsement/ Guarantee Given by Parent on Behalf of Subsidiaries	Endorsement/ Guarantee Given by Subsidiaries on Behalf of Parent	Endorsement/ Guarantee Given on Behalf of Companies in Mainland China
		Name	Relationship
1	Cinemark-Core Pacific, Ltd.	Cinema 7 Theater Co., Ltd.	A subsidiary in which parent corporation holds directly and indirectly over 50% of an equity interest.	$ 346,960 (Note 2)	$ 110,000	$ 110,000	$ 83,885	$ 115,331	31.70	$ 1,040,881 (Note 6)	Y	-	-
2	Hua Cheng Consulting (Changshu) Co., Ltd.	BES Engineering Corporation	An investee in which parent corporation and its subsidiaries hold directly and indirectly over 50% of an equity interest.	497,169 (Note 3)	312,073	312,073	260,000	312,073	62.77	994,339 (Note 7)	-	Y	-
3	Core Pacific Consulting (Changshu) Co., Ltd.	BES Engineering Corporation	An investee in which parent corporation and its subsidiaries hold directly and indirectly over 50% of an equity interest.	493,698 (Note 4)	312,073	312,073	260,000	312,073	63.21	987,395 (Note 8)	-	Y	-
4	Chung Kung Safeguarding & Security Corp.	Chung Kung Management Consultant Co., Ltd. Chung Kung Management and Maintenance of Apartment Co., Ltd.	A subsidiary in which parent corporation holds directly and indirectly over 50% of an equity interest. A subsidiary in which parent corporation holds directly and indirectly over 50% of an equity interest.	205,875 (Note 5) 205,875 (Note 5)	25,000 25,000	25,000 25,000	- 2,000	- -	30.36 30.36	247,050 (Note 9) 247,050 (Note 9)	Y Y	- -	- -

Note 1: The use of “Y” represents endorsements provided on behalf of entities located in mainland China.

Note 2: The limit on the endorsement for each counterparty is equal to 100% of Cinemark-Core Pacific, Ltd.’s net equity as shown in its latest financial statements.

Note 3: The limit on the endorsement for each counterparty is equal to 100% of Hua Cheng Consulting (Changshu) Co., Ltd.’s net equity as shown in its latest financial statements.

Note 4: The limit on the endorsement for each counterparty is equal to 100% of Core Pacific Consulting (Changshu) Co., Ltd.’s net equity as shown in its latest financial statements.

Note 5: The limit on the endorsement for each counterparty is equal to 250% of Chung Kung Safeguarding & Security Corp.’s net equity as shown in its latest financial statements.

Note 6: The limit on the endorsement for each counterparty is equal to 300% of Cinemark-Core Pacific, Ltd.’s net equity as shown in its latest financial statements.

Note 7: The limit on the endorsement for each counterparty is equal to 200% of Hua Cheng Consulting (Changshu) Co., Ltd.’s net equity as shown in its latest financial statements.

Note 8: The limit on the endorsement for each counterparty is equal to 200% of Core Pacific Consulting (Changshu) Co., Ltd.’s net equity as shown in its latest financial statements.

Note 9: The limit on the endorsement for each counterparty is equal to 300% of Chung Kung Safeguarding & Security Corp.’s net equity as shown in its latest financial statements.

74 -

TABLE 4

BES ENGINEERING CORPORATION AND SUBSIDIARIES

MARKETABLE SECURITIES HELD DECEMBER 31, 2023 (In Thousands of New Taiwan Dollars)

No.	Holding Company Name	Type and Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account		December 31, 2023	December 31, 2023		Note
					Number of Shares	Carrying Amount	Percentage of Ownership (%)	Fair Value
0	BES Engineering Corporation	Taishin ESG Emerging Markets Bond Fund Taiwan Business Bank China Petrochemical Development Corporation Century Development Corporation Overseas Investment & Development Corporation Zowie Technology Corporation Fortemedia Fortemedia	- - Legal directors of the Corporation - - - - -	Financial assets at FVTPL - current Financial assets at FVTOCI - current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current	500,000 40,613,608 183,037,540 10,633,492 2,600,000 6,611 4,137 62,282	$ 4,248 556,406 1,788,277 83,366 29,796 - - -	- 0.49 4.84 3.03 2.89 0.02 - -	$ 4,248 556,406 1,788,277 83,366 29,796 - - -	Note 1 Note 1 Note 1 Note 1 Note 1 Note 2
1	Core Pacific World Co., Limited	China Petrochemical Development Corporation Taiwan Business Bank	Legal directors of the Corporation -	Financial assets at FVTOCI - current Financial assets at FVTOCI - current	30,649,620 1,467,608	299,447 20,106	0.81 0.02	299,447 20,106	Note 1 Note 1
2	Cinemark-Core Pacific, Ltd.	The investment case of movie - The M Riders	-	Financial assets at FVTOCI - non-current	-	-	-	-

Note 1: Market values of listed quoted shares and mutual funds were based on the closing prices and net asset values, respectively, as of December 31, 2023; values of unlisted shares were determined by using the fair value measurement as of December 31, 2023.

Note 2: Preference shares.

75 -

TABLE 5

BES ENGINEERING CORPORATION AND SUBSIDIARIES

MARKETABLE SECURITIES ACQUIRED OR DISPOSED OF AT COSTS OR PRICES OF AT LEAST NT$300 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE YEAR ENDED DECEMBER 31, 2023

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Company Name	Type and Name of Marketable Securities	Financial Statement Account	Counterparty	Relationship	Beginning Balance	Beginning Balance	Acquisition	Acquisition		Disposal	Disposal		Ending	Balance
					Number of Shares	Amount	Number of Shares	Amount	Number of Shares	Amount	Carrying Amount	Gain (Loss) on Disposal	Number of Shares	Amount
BES Engineering Corporation	Stock Taiwan Business Bank	Financial assets at FVTOCI - current	-	-	68,964,727	$ 893,093	-	$ -	29,303,000	$ 412,311	$ 182,591	$ 229,720	40,613,608	$ 556,406

76 -

TABLE 6

BES ENGINEERING CORPORATION AND SUBSIDIARIES

INFORMATION ON INVESTEES FOR THE YEAR ENDED DECEMBER 31, 2023 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Investor Company	Investee Company	Location	Main Businesses and Products	Investment Amount	Investment Amount	Balance	as of December 31, 2023	as of December 31, 2023	Net Income (Loss) of the Investee	Investment Gain (Loss) Recognized	Note
				December 31, 2023	December 31, 2022	Shares	Percentage of Ownership	Carrying Value
BES Engineering Corporation Core Pacific World Co., Limited BES Investment Company Ltd. Core Asia Human Resources Management Co., Ltd Chung Kung Safeguarding & Security Corp. Cinemark-Core Pacific, Ltd. Chung Kung Management Consultant Co., Ltd.	Core Pacific World Co., Limited BES Investment Company Ltd. BES Logistics International Co., Ltd. Core Asia Human Resources Management Co., Ltd. Chung Kung Safeguarding & Security Corp. Cinemark-Core Pacific, Ltd. BES Construction Corporation (U.S.A.) BES Global Investment Co. BA & BES Contracting (L.L.C.) BESM Holding Co., Ltd. Huading Enterprise Co., Ltd. Chinese City International Investment Co., Ltd. Zhong Hua Cheng Development Co., Ltd. Wei-Jing Holdings Ltd. BES Construction Corporation (U.S.A.) Global BES Engineering (Myanmar) Co., Ltd. BES Engineering Vietnam Company Limited Elite Human Resources Management Co., Ltd. Chung Kung Management Consultant Co., Ltd. Chung Kung Management and Maintenance of Apartment Co., Ltd. Cinemark-Core (Hong Kong) Pacific Ltd. Cinema 7 Theater Co., Ltd. Chung Kung Management and Maintenance of Apartment Co., Ltd.	Taipei, Taiwan Unit 1607,16th Floor, Fortress Tower,250 King’s Road, North Point, Hong Kong Republic of Mauritius Taipei, Taiwan Taipei, Taiwan Taipei, Taiwan 141 Bennington Court McDonough, Georgia 30253, U.S.A. 4F, Ellen Skelton Building 3076 Sir Francis Drake Hignway, Tortola, Bristish Virgin Islands P.O. Box 92237, Dubai-UAE Vistra Corporate Services Centre, Wickhams Cay II, Road Town, Tortola, VG1110, British Virgin Islands Taipei, Taiwan Republic of Mauritius Republic of Mauritius B.V.I. 141 Bennington Court McDonough, Georgia 30253, U.S.A. NO.153/KA,Kyun Shwe Myaing Lane (2), 23 Ward, (Thuwanna), Thingangyun Township, Yangon, Myanmar 84 PHAN KHIEM ICH, P TAN PHONG, QUAN 7, TP HO CHI MINH, VIET NAM. Taipei, Taiwan Taipei, Taiwan Taipei, Taiwan FLATB 3/F WING CHBONG COMMERCIAL BOILDING 19-25 JERVOIS STREET SHEVNG WAN HK Taipei, Taiwan Taipei, Taiwan	Makes investments Overseas construction and equipment sale Makes investments Consultancy on business administration and investments Security and related services Movie broadcasting and related businesses Develops lands for investments Overseas construction and equipment sale Engineering and construction Holds investments Urban renewal reconstruction Consulting Consulting Holds investments Develops lands for investments Engineering and construction Engineering and construction Human resource consulting Business management consulting and running parking lots Manages apartment maintenance and renders related services Hold investment Movie broadcasting and retail sale of rood products and groceries Manages apartment maintenance and renders related services	$ 1,530,094 1,807,467 348,278 60,000 38,127 315,380 259,562 51,313 10,696 162,163 441,090 330,714 330,714 463,104 25,724 15,478 1,048,410 5,000 10,000 3,700 246,729 150,183 6,300	$ 1,530,094 1,485,277 348,278 60,000 38,127 115,380 259,562 51,313 10,696 162,163 - 330,714 330,714 463,104 25,724 15,478 726,220 5,000 10,000 3,700 246,729 150,183 6,300	115,942,000 59,600,000 13,995,389 6,000,000 3,880,000 29,455,180 8,509 1,510,100 1,200,000 5,075,000 44,109,000 9,500,000 9,500,000 14,400,000 761 500,000 - 500,000 - - 61,503,000 25,000 -	99.95 100.00 100.00 100.00 64.67 91.76 91.79 100.00 40.00 100.00 90.00 100.00 100.00 44.67 8.21 100.00 60.00 100.00 100.00 37.00 49.60 100.00 63.00	$ 1,404,066 1,634,210 722,187 89,037 53,257 318,373 26,811 17,132 - 241,534 440,385 505,888 502,332 454,023 2,398 16,292 1,095,827 15,293 14,619 4,200 92,800 (60,553 ) 7,151	$ 29,931 (37,049 ) 4,888 3,468 5,335 (50,884 ) (114 ) (35 ) - 1,079 (783 ) 21,222 22,411 (73,203 ) (114 ) (512 ) 1,135 6,095 427 (666 ) (18,734 ) (21,836 ) (666 )	$ 29,917 (37,049 ) 4,888 3,468 3,450 (45,208 ) (104 ) (35 ) - 1,079 (705 ) 21,222 22,411 (32,699 ) (10 ) (512 ) (3,637 ) 6,095 427 (246 ) (9,292 ) (21,836 ) (420 )	Investee is a subsidiary Investee is a subsidiary Investee is a subsidiary Investee is a subsidiary Investee is a subsidiary Investee is a subsidiary Investee is a subsidiary Investee is a subsidiary Investee is a subsidiary Investee is a subsidiary Investee is a subsidiary Investee is a subsidiary Investee is a subsidiary Investee is a subsidiary Investee is a subsidiary Investee is a subsidiary Investee is a subsidiary Investee is a subsidiary Investee is a subsidiary Investee is a subsidiary

77 -

TABLE 7

BES ENGINEERING CORPORATION AND SUBSIDIARIES

INFORMATION ON INVESTMENTS IN MAINLAND CHINA FOR THE YEAR ENDED DECEMBER 31, 2023 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Investee Company	Main Businesses and Products	Main Businesses and Products	Paid-in Capital	Method of Investment (Note 1)	Accumulated Outward Remittance for Investment from Taiwan as of January 1, 2023	Remittance of Funds	Remittance of Funds	Remittance of Funds	Accumulated Outward Remittance for Investment from Taiwan as of December 31, 2023	Net Income (Loss) of the Investee	% Ownership of Direct or Indirect Investment	Investment Gain (Loss) (Note 2)	Carrying Amount as of December 31, 2023	Accumulated Repatriation of Investment Income as of December 31, 2023
						Outward	Inward
Xiamen Bonded Area Airport Logistics Park Construction Co., Ltd. Core Pacific Consulting (Changshu) Co., Ltd. Hua Cheng Consulting (Changshu) Co., Ltd. Xiamen Bonded Area Airport Logistics Park Construction Co., Ltd. Cinemark-Core (Shanghai) Pacific Management and Consulting Yunnan Core Pacific City HRDD Logistics Co., Ltd. Cinemark-Core (Suzhou) Pacific Ltd.	Engages in the logistics, warehousing and international trade Provides engineering consulting services Provides engineering consulting services Engages in the logistics, warehousing and international trade Theater management, purchasing, and consulting Theater management, purchasing, and consulting Provides warehousing and freight forwarders Theater management, purchasing, and consulting		$ 1,100,438 (RMB 250,000 thousand) 305,982 (US$ 9,000 thousand) 305,982 (US$ 9,000 thousand) 1,100,438 (RMB 250,000 thousand) 27,602 (US$ 900 thousand) 120,676 (US$ 4,031 thousand) 653,328 (RMB 144,000 thousand) 343,172 (US$ 11,000 thousand)	b. (Note 3) b. (Note 4) b. (Note 5) b. (Note 6) b. (Note 7) b. (Note 7) a. b. (Note 7)	$ 341,921 (US$ 10,703 thousand) 305,982 (US$ 9,000 thousand) 305,982 (US$ 9,000 thousand) 167,565 (RMB 40,900 thousand) 27,577 (US$ 900 thousand) 59,131 (US$ 1,975 thousand) 166,730 (RMB 34,000 thousand) 161,597 (US$ 5,000 thousand)	$ - - - - - - - -	$	- - - - - - - -	$ 341,921 (US$ 10,703 thousand) 305,982 (US$ 9,000 thousand) 305,982 (US$ 9,000 thousand) 167,565 (RMB 40,900 thousand) 27,577 (US$ 900 thousand) 59,131 (US$ 1,975 thousand) 166,730 (RMB 34,000 thousand) 161,597 (US$ 5,000 thousand)	$ 12,718 (RMB 2,893 thousand) 22,805 (RMB 5,188 thousand) 21,614 (RMB 4,917 thousand) 12,718 (RMB 2,893 thousand) (9) (RMB (2) thousand) (9,133) (RMB (2,078) thousand) (103,058) (RMB (23,444) thousand) (16,125) (RMB (3,668) thousand)	39.20 100.00 100.00 9.80 49.60 24.30 23.61 49.60	$ 4,985 (RMB 1,134 thousand) 22,805 (RMB 5,188 thousand) 21,614 (RMB 4,917 thousand) 1,246 (RMB 284 thousand) (4) (RMB (1) thousand) (2,219) (RMB (505) thousand) (24,332) (RMB (5,535) thousand) (7,998) (RMB (1,819) thousand)	$ 767,091 (RMB 177,280 thousand) 493,698 (RMB 114,097 thousand) 497,169 (RMB 114,899 thousand) 191,773 (RMB 44,300 thousand) (483) (RMB (112) thousand) 25,991 (RMB 6,007 thousand) 23,893 (RMB 5,522 thousand) 38,775 (RMB 8,961 thousand)	$ 186,210 (US$ 6,162 thousand) 55,775 (US$ 1,853 thousand)

Investor Company Name		Accumulated Investment in Mainland China as of December 31, 2023			Investment Amounts Authorized by the Investment Commission, MOEA				Upper Limit on Investment
BES Engineering Corporation Core Pacific World Co., Limited Cinemark-Core Pacific, Ltd.		US$ 12,103 thousand RMB 74,900 thousand US$ 18,000 thousand US$ 7,875 thousand			US$ 23,809 thousand US$ 19,000 thousand US$ 7,875 thousand				NT$ 13,979,233 NT$ 842,861 NT$ 208,176

(Continued)

78 -

Note 1: Methods of investment are as categorized as follows:

a. Direct investment in China.
b. Investment made in China through third party. c. Others.

Note 2: Under the investment gain (loss) column:

a. Companies still in the preparatory stage and therefore have no gains or losses should be disclosed.
b. Investment gain (loss) recognized based on the following should be disclosed:
1) Financial statements are audited through the cooperation between international accounting from and ROC accounting firm.
2) Financial statements are audited by licensed CPA of the parent corporation.
3) Others.

Note 3: BES Logistics International Co., Ltd., is third party investor.

Note 4: Zhong Hua Cheng Development Co., Ltd., is third party investor.

Note 5: Chinese City International Investment Co., Ltd., is third party investor.

Note 6: BESM Holding Co., Ltd., is third party investor.
Note 7: Cinemark-Core (Hong Kong) Pacific Ltd., is third party investor.

(Concluded)

79 -

TABLE 8

BES ENGINEERING CORPORATION

INFORMATION OF MAJOR SHAREHOLDERS DECEMBER 31, 2023

Name of Major Shareholder	Shares	Shares
	Number of Shares	Percentage of Ownership (%)
China Petrochemical Development Corporation	164,348,449	10.73

Note 1: The information of major shareholders presented in this table is provided by the Taiwan Depository & Clearing Corporation based on the number of ordinary shares and preference shares held by shareholders with ownership of 5% or greater, that have been issued without physical registration (including treasury shares) by the Corporation as of the last business day for the current quarter. The share capital in the parent company only financial statements may differ from the actual number of shares that have been issued without physical registration because of different preparation basis.
Note 2: If a shareholder delivers the shareholdings to the trust, the above information will be disclosed by the individual truster who opened the trust account. For shareholders who declare insider shareholdings with ownership greater than 10% in accordance with the Security and Exchange Act, the shareholdings include shares held by shareholders and those delivered to the trust over which shareholders have rights to determine the use of trust property. For information relating to insider shareholding declaration, please refer to Market Observation Post System.
80 -

BES ENGINEERING CORPORATION

THE CONTENTS OF STATEMENTS OF MAJOR ACCOUNTING ITEMS

Item

Major Accounting Items in Assets, Liabilities and Equity
Statement of cash
Statement of financial assets at fair value through profit and loss - current
Statement of financial assets at fair value through other comprehensive income - current
Statement of construction receivables, net
Statement of accounts receivable on the development of industrial districts
Statement of buildings and land held for sale, net
Statement of construction in progress, net
Statement of changes in investments accounted for using the equity method
Statement of changes in financial assets at fair value through other comprehensive
income - non-current
Statement of changes in property, plant and equipment
Statement of changes in accumulated depreciation of property, plant and equipment
Statement of changes in right-of-use assets
Statement of changes in investment properties
Statement of changes in accumulated depreciation of investment properties
Statement of deferred tax assets
Statement of short-term borrowings
Statement of short-term bills payable
Statement of trade payable
Statement of accounts payable for the development of industrial districts
Statement of provisions
Statement of long-term borrowings
Statement of lease liabilities
Statement of deferred tax liabilities
Major Accounting Items in Profit or Loss
Statement of construction contract revenue
Statement of construction contract cost
Statement of selling and marketing expenses
Statement of general and administrative expenses
Statement of research and development expenses
Statement of other gains and losses
Statement of finance costs
Statement of employee benefits and depreciation expenses

**Statement Index **

Note 6
1

2
3
Note 11
Note 12
Note 12
4
5
Note 15
Note 15
6
Note 17
Note 17
Note 27
7
Note 18
8
Note 20
Note 21
9
Note 16
Note 27
10
10
11
11
11
Note 26
Note 26
12

81 -

STATEMENT 1

BES ENGINEERING CORPORATION

STATEMENT OF FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT AND LOSS - CURRENT FOR THE YEAR ENDED DECEMBER 31, 2023

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Name Mutual funds Taishin ESG Emerging Markets Bond Fund	January 1,	2023 Amount $ 4,142	Additions Shares Amount - $ -	Gain (Loss) on Financial Assets at Fair Value Decrease Through Shares Amount Profit or Loss - $ - $ 106	December 31, 2023 Shares Amount Collateral Note 500,000 $ 4,248 None
	Shares 500,000		Shares -	Shares -	Shares 500,000

82 -

STATEMENT 2

BES ENGINEERING CORPORATION

STATEMENT OF FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME - CURRENT FOR THE YEAR ENDED DECEMBER 31, 2023

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Name Listed shares - ordinary shares Taiwan Business Bank	January 1, 2023 Shares Amount 68,964,727$ 893,093	Additions Shares Amount 951,881$ -	Unrealized Gain on Financial Assets at Fair Value Through Other Comprehen- Decrease sive Shares Amount Income 29,303,000$ 412,311 $ 75,624	December 31, 2023 Shares Amount Collateral Note 40,613,608$ 556,406 Yes Note
	Shares 68,964,727	Shares 951,881	Shares 29,303,000	Shares 40,613,608

Note: As of December 31, 2023, Taiwan Business Bank is pledged for short-term borrowings with a mortgage amount of $528,820 thousand.

83 -

STATEMENT 3

BES ENGINEERING CORPORATION

STATEMENT OF CONSTRUCTION RECEIVABLES DECEMBER 31, 2023 (In Thousands of New Taiwan Dollars)

Name of Owner
Hsinchu Science Park Bureau, National Science and Technology Council

Department of Rapid Transit Systems, Taoyuan City Government
National Taiwan University Hospital
Air Force Combatant Command
Land Administration Department, New Taipei City Government
Southern Region Water Resources Office, Water Resources Agency, Ministry of Economic
Affairs
Department of Urban Development, Taipei City Government
Others (Note)

Amount
$ 588,099
567,200
563,542
367,791
367,163
337,887
208,370

1,034,793
$ 4,034,845

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

84 -

STATEMENT 4

BES ENGINEERING CORPORATION

STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD FOR THE YEAR ENDED DECEMBER 31, 2023 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Investee Company Core Pacific World Co., Limited BES Investment Company Ltd. BES Logistics International Co., Ltd. Core Asia Human Resources Management Co., Ltd. Chung Kung Safeguarding & Security Corp. Cinemark - Core Pacific, Ltd. BES Construction Corporation (U.S.A.) BES Global Investment Co. BA & BES Contracting (L.L.C.) BESM Holding Co., Ltd. HRDD Logistics Co., Ltd. Huading Enterprise Co., Ltd.	Balance, January 1, 2023 Percentage of Number of Shares Ownership (%) Amount 115,942,000 99.95 $ 1,742,545 49,600,000 100.00 1,336,679 13,995,389 100.00 730,805 6,000,000 100.00 90,345 3,880,000 64.67 52,522 9,455,180 78.14 157,468 8,509 91.79 26,918 1,510,100 100.00 17,488 1,200,000 40.00 - 5,075,000 100.00 244,973 34,000,000 23.61 48,739 - - - $ 4,448,482	Additions Number of Shares Amount - $ - 10,000,000 322,190 - - - 24 - 40 20,000,000 200,000 - - - - - - - - - - 44,109,000 441,090 $ 963,344	Investment Decrease Profit (Loss) Accounted for Number of Shares Amount Ownership of Subsidiaries - $ 349,651 $ 29,917 - 395 (37,049) - - 4,888 - 4,800 3,468 - 2,755 3,450 - - (45,208) - - (104) - - (35) - - - - - 1,079 - - (24,332) - - (705) $ 357,601 $ (64,631)	Changes in Translation Adjustment Using the Equity Method $ (18,745) $ - 2,195 10,590 (13,506) - - - - - (1,350) 7,463 (3) - (321) - - - (4,518) - (514) - - - $ (36,762) $ 18,053	Balance, December 31, 2023 Percentage of Number of Shares Ownership (%) Amount Note 115,942,000 99.95 $ 1,404,066 Notes 5 and 6 59,600,000 100.00 1,634,210 Notes 4 and 6 13,995,389 100.00 722,187 6,000,000 100.00 89,037 Notes 1 and 5 3,880,000 64.67 53,257 Notes 1 and 5 29,455,180 91.76 318,373 Note 2 8,509 91.79 26,811 1,510,100 100.00 17,132 1,200,000 40.00 - 5,075,000 100.00 241,534 34,000,000 23.61 23,893 44,109,000 90.00 440,385 Note 3 $ 4,970,885
	Percentage of Number of Shares Ownership (%) 115,942,000 99.95 49,600,000 100.00 13,995,389 100.00 6,000,000 100.00 3,880,000 64.67 9,455,180 78.14 8,509 91.79 1,510,100 100.00 1,200,000 40.00 5,075,000 100.00 34,000,000 23.61 - -				Percentage of Number of Shares Ownership (%) 115,942,000 99.95 59,600,000 100.00 13,995,389 100.00 6,000,000 100.00 3,880,000 64.67 29,455,180 91.76 8,509 91.79 1,510,100 100.00 1,200,000 40.00 5,075,000 100.00 34,000,000 23.61 44,109,000 90.00
		Number of Shares - 10,000,000 - - - 20,000,000 - - - - - 44,109,000	Number of Shares - - - - - - - - - - - -

Note 1: The increase in the current year is due to accrued defined benefit gain of $24 thousand from Core Asia Human Resource Management Co., Ltd. and $40 thousand from Chung Kung Safeguarding & Security Corp.

Note 2: The increase in the current year is due to subscription of additional new shares of Cinemark-Core Pacific, Ltd. by $200,000 thousand on March 21, 2023.

Note 3: The increase in the current year is due to the board of directors of the Corporation resolved to establish Huading Enterprise Co., Ltd. on May 10, 2023, and the Corporation holds 90% of the equity with control. Additionally, the Corporation subscribed to additional new shares of Huading Enterprise Co., Ltd. for 2023 by $90 thousand at its existing ownership percentage on July 25, 2023.

Note 4: The increase in the current year is due to subscription of additional new shares of BES Investment Company Ltd. by US$10 million on July 27, 2023.

Note 5: The decrease in the current year is due to cash dividends distributed from investee companies, $347,826 thousand from Core Pacific World Co., Limited, $4,800 thousand from Core Asia Human Resource Management Co., Ltd. and $2,755 thousand from Chung Kung Safeguarding & Security Corp.

Note 6: The decrease in the current period is due to unrealized loss on financial assets, $1,825 thousand from Core Pacific World Co., Limited and $395 thousand from BES Investment Company Ltd.

Note 7: As of December 31, 2023, no investments accounted for using the equity method were pledged as collateral or provided as a guarantee.

85 -

STATEMENT 5

BES ENGINEERING CORPORATION

STATEMENT OF CHANGES IN FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME - NON-CURRENT FOR THE YEAR ENDED DECEMBER 31, 2023

(In Thousands of New Taiwan Dollars)

Name Listed shares - ordinary shares China Petrochemical Development Corporation Unlisted shares - ordinary shares Century Development Corporation Overseas Investment & Development Corporation Zowie Technology Corporation Fortemedia Unlisted shares - preferred shares Fortemedia	January 1, 2023 Shares Amount 183,037,540$ 1,808,411 10,633,492 83,260 2,600,000 21,502 6,611 - 4,137 - 62,282 - $ 1,913,173	Unrealized Gain (Loss) on Financial Assets at Fair Value Through Other Additions Comprehensive Shares Amount Income -$ - $ (20,134) - - 106 - - 8,294 - - - - - - - - - $ - $ (11,734)	December 31, 2023 Shares Amount Collateral Note 183,037,540$ 1,788,277 Yes Note 10,633,492 83,366 None 2,600,000 29,796 None 6,611 - None 4,137 - None 62,282 - None $ 1,901,439
	Shares 183,037,540 10,633,492 2,600,000 6,611 4,137 62,282	Shares - - - - - -	Shares 183,037,540 10,633,492 2,600,000 6,611 4,137 62,282

Note: As of December 31, 2023, China Petrochemical Development Corporation is pledged for short-term borrowings with a mortgage amount of $1,486,750 thousand.

86 -

STATEMENT 6

BES ENGINEERING CORPORATION

STATEMENT OF CHANGES IN RIGHT-OF-USE ASSETS FOR THE YEAR ENDED DECEMBER 31, 2023 (In Thousands of New Taiwan Dollars)

Item Cost Balance, January 1, 2023 Additions Decrease Balance, December 31, 2023 Accumulated depreciation Balance, January 1, 2023 Additions Decrease Balance, December 31, 2023 Net, December 31, 2023	Land $ 55,210 8,750 (3,299) $ 60,661 $ 17,397 5,577 (2,668) $ 20,306 $ 40,355	Buildings Transportation Equipment $ 66,940 $ 50,249 4,100 33,805 (771) (10,119) $ 70,269 $ 73,935 $ 14,092 $ 23,771 22,974 20,986 (771) (10,119) $ 36,295 $ 34,638 $ 33,974 $ 39,297	Total $ 172,399 46,655 (14,189) $ 204,865 $ 55,260 49,537 (13,558) $ 91,239 $ 113,626

87 -

STATEMENT 7

BES ENGINEERING CORPORATION

STATEMENT OF SHORT-TERM BORROWINGS DECEMBER 31, 2023 (In Thousands of New Taiwan Dollars)

Type
Contract Period
Interest Rate
(%)
Unsecured loans
Hua Nan Bank - Chungshiao East Road Branch
2023.08.21-2024.08.21
2.7013

Entie Bank
2023.12.20-2024.02.16
2.8330

Mortgage loan
Bank of Taiwan Department of Business
2023.09.26-2024.01.16
2.6600
Bank of Taiwan Department of Business
2023.10.20-2024.01.16
2.6600
Taiwan Business Bank Department - Ta an Branch
2023.11.16-2024.02.16
2.5500
Taichung Commercial Bank - Linkou Branch
2023.10.02-2024.10.02
2.2700
The Shanghai Commercial & Savings Bank - Tienmou Branch
2023.08.23-2024.08.23
2.8000
Bank of Taiwan Department of Business
2023.07.20-2024.01.16
2.6600
Bank of East Asia
2023.02.17-2024.02.16
2.9829
Sunny Bank - Min sheng Branch
2023.04.20-2024.04.20
2.5050
The Shanghai Commercial & Savings Bank - Tienmou Branch
2023.08.23-2024.08.23
2.4000
Bank of Kaohsiung - Taipei Branch
2023.11.24-2024.02.22
2.4900
Taiwan Cooperative Bank - Dong Taipei Branch
2023.03.30-2024.03.30
2.4530
Taichung Commercial Bank - Linkou Branch
2023.10.02-2024.10.02
2.5200
Sunny Bank - Min sheng Branch
2023.04.20-2024.04.20
2.6050
Shin Kong Bank - Chang An Branch
2023.10.17-2024.04.15
2.7600

Amount
Loan
Commitments
Collateral
$ 800,000
$ 800,000

200,000

200,000

1,000,000

1,000,000
1,100,000
1,100,000
Land and building
800,000
800,000
Land, buildings and parking space
500,000
500,000
Land and building
320,000
320,000
Shares of China Petrochemical Development Corporation
309,000
309,000
Land and building
300,000
300,000
Land and building
300,000
300,000
Land and building
266,000
316,000
Taiwan Business Bank, Ltd. shares
194,000
300,000
Shares of China Petrochemical Development Corporation
180,000
200,000
Shares of China Petrochemical Development Corporation
180,000
180,000
Land and building
170,000
170,000
Shares of China Petrochemical Development Corporation
114,000
114,000
Taiwan Business Bank, Ltd. shares

48,000

48,000
Land and building

4,781,000

4,957,000
$ 5,781,000
$ 5,957,000

Note: As of December 31, 2023, the Corporation’s short-term financing facilities with banks amounted to approximately $6,257,000 thousand, net of short-term loans of $5,781,000 thousand, which had available unutilized short-term borrowings facilities of $476,000 thousand.

88 -

STATEMENT 8

BES ENGINEERING CORPORATION

STATEMENT OF TRADE PAYABLE DECEMBER 31, 2023 (In Thousands of New Taiwan Dollars)

Vendor Name Related parties Chung Kung Safeguarding & Security Corp. Core Asia Human Resources Management Co., Ltd. Unrelated parties Chun Yuan Steel Industry Co., Ltd. Others (Note)	Amount $ 9,655 2,991 12,646 474,424 5,874,249 $ 6,361,319

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

89 -

STATEMENT 9

BES ENGINEERING CORPORATION

STATEMENT OF LONG-TERM BORROWINGS DECEMBER 31, 2023 (In Thousands of New Taiwan Dollar)

Type
Expected Duration and Repayment Method
Range of
Interest Rates
(%)
Credit Loans
Taiwan Cooperative Bank - Dong Taipei Branch
From April 17, 2023 to November 18, 2024, the principal is written off by 42% of the
deduction of the estimated unit price for each period, the interest is paid monthly
and the remaining principal is repaid once at maturity.
2.8930

The Shanghai Commercial & Savings Bank, Ltd. - Tien
Mou Branch
From March 25, 2022 to March 25, 2025, the amount of $5,416,667 will be amortized
in 12 quarterly installments (1-11) and $5,416,553 in the 12th installment.
2.5950
Taiwan Business Bank Department -Ta an Branch
From October 3, 2023 to October 3, 2028, the first instalment will be repaid from
October 3, 2024, and it will be amortized in 17 quarterly installments.
2.5000
Bank of Taiwan Department of Business
Note 2
2.9211
Taiwan Cooperative Bank - Dong Taipei Branch
Note 2
2.9211
Agricultural Bank of Taiwan
Note 2
2.9211
Taiwan Business Bank Department -Ta an Branch
Note 2
2.9211
First Bank - Xingya Branch
Note 2
2.9211
Hua Nan Bank - Chungshiao East Road Branch
Note 2
2.9211
Hua Nan Bank - Chungshiao East Road Branch
Note 3
2.7632
Taiwan Business Bank Department - Ta an Branch
Note 3
2.7632
Taiwan Cooperative Bank - Dong Taipei Branch
Note 3
2.7632
Bank of Panhsin - Neihu Branch
Note 3
2.7632
Agricultural Bank of Taiwan
Note 3
2.7632
Taiwan Business Bank Department - Ta an Branch
From May 29, 2023 to March 26, 2026, interest will be paid monthly, the principal
will be repaid according to the loan ratio when the house is completed and handed
over and the remaining principal is repaid once at maturity.
2.8800
Bank of Taiwan Department of Business
From November 16, 2023 to October 2, 2028, interest will be paid monthly, the
principal will be repaid according to the loan ratio when the house is completed
and handed over and the remaining principal is repaid once at maturity.
2.7632
Hua Nan Bank - Chungshiao East Road Branch
From October 3, 2023 to August 30, 2027, the principal is written off by 25% of the
deduction of the estimated unit price for each period, the interest is paid monthly
and the remaining principal is repaid once at maturity.
2.7400
Taiwan Cooperative Bank - Dong Taipei Branch
From October 26, 2023 to October 26, 2026, the principal is written off by 40% of the
deduction of the estimated unit price for each period, the interest is paid monthly
and the remaining principal is repaid once at maturity.
2.8930
Taiwan Business Bank Department - Ta an Branch
From August 16, 2021 to March 26, 2026, interest will be paid monthly, the principal
will be repaid according to the loan ratio when the house is completed and handed
over and the remaining principal is repaid once at maturity.
2.8800

Ending Balance
Long-term
Borrowings
Due Within
A Year
Long-term
Borrowings
Over A Year
Total
Collateral
$ 34,464 $ - $ 34,464
21,667
5,417
27,084
3,000
397,000
400,000
-
400,980
400,980
-
306,632
306,632
-
306,632
306,632
-
212,284
212,284
-
212,284
212,284
-
212,284
212,284
-
20,608
20,608
-
5,152
5,152
-
5,152
5,152
-
5,152
5,152
-
5,152
5,152
-
668,000
668,000
-
351,600
351,600
-
295,845
295,845
-
281,103
281,103
-
269,000
269,000

(Continued)

90 -

Type Expected Duration and Repayment Method Range of Interest Rates (%) Taichung Commercial Bank - Linkou Branch From November 29, 2023 to November 29, 2026, the principal is written off by 40% of the deduction of the estimated unit price for each period, the interest is paid monthly and the remaining principal is repaid once at maturity. 2.7500 Taiwan Cooperative Bank - Dong Taipei Branch From July 18, 2023 to July 18, 2026, the principal is written off by 40% of the deduction of the estimated unit price for each period, the interest is paid monthly and the remaining principal is repaid once at maturity. 2.8930 Taiwan Cooperative Bank - Dong Taipei Branch From April 17, 2023 to December 4, 2025, the principal is written off by 20% of the deduction of the estimated unit price for each period, the interest is paid monthly and the remaining principal is repaid once at maturity. 2.8930 Bank of Taiwan Department of Business From November 16, 2023 to October 2, 2028, interest will be paid monthly, the principal will be repaid according to the loan ratio when the house is completed and handed over and the remaining principal is repaid once at maturity. 2.7632 Hua Nan Bank - Chungshiao East Road Branch From December 15, 2021 to October 15, 2025, the principal is written off by 30% of the deduction of the estimated unit price for each period, the interest is paid monthly and the remaining principal is repaid once at maturity. 2.6500 Taiwan Business Bank Department - Ta an Branch From October 26, 2023 to April 28, 2026, the principal is written off by 30% of the deduction of the estimated unit price for each period, the interest is paid monthly and the remaining principal is repaid once at maturity. 2.5000 Taiwan Business Bank Department - Ta an Branch From April 17, 2023 to May 16, 2026, the principal is written off by 30% of the deduction of the estimated unit price for each period, the interest is paid monthly and the remaining principal is repaid once at maturity. 2.3750 Taiwan Cooperative Bank - Dong Taipei Branch From October 3, 2023 to November 12, 2025, the principal is written off by 20% of the deduction of the estimated unit price for each period, the interest is paid monthly and the remaining principal is repaid once at maturity. 2.8930 Guaranteed loans Bank of East Asia From December 14, 2022 to December 13, 2024, the interest is paid monthly and the remaining principal is repaid once at maturity. 3.0882 Bank of Kaohsiung From March 16, 2023 to March 16, 2028, $14,000,000 will be amortized every six months, the interest is paid monthly and the remaining principal is repaid once at maturity. 2.7500 First Bank - Xingya Branch From May 25, 2022 to June 15, 2031, the fixed annuity method is used to repay principal and interest in equal installments per month. 2.2400 Bank of Taiwan Department of Business Note 4 3.0263 Taiwan Business Bank Department of Business Note 4 3.0263 Hua Nan Bank - Chungshiao East Road Branch Note 4 3.0263 First Bank - Xingya Branch Note 4 3.0263 Land Bank of Taiwan - Chung Lun Branch Note 4 3.0263 Taiwan Cooperative Bank - Dong Taipei Branch Note 4 3.0263 Chang Hwa Bank - His-Neihu Branch Note 4 3.0263 Agricultural Bank of Taiwan Note 4 3.0263 The Bank of East Asia Note 4 3.0263 Bank of Taiwan Department of Business Note 5 3.1316 First Bank - Xingya Branch Note 5 3.1316 Taiwan Business Bank Department of Business Note 5 3.1316 Hua Nan Bank - Chungshiao East Road Branch Note 5 3.1316		Ending Balance	Ending Balance	Total Collateral $ 200,000 130,330 120,721 117,400 113,798 89,594 82,118 1,570 4,874,939 520,000 Letter of credit 236,000 Land and building 132,177 Land and building 1,170,000 Land 442,000 Land 442,000 Land 442,000 Land 435,000 Land 221,000 Land 221,000 Land 221,000 Land 106,000 Land 351,557 Land 136,018 Land 136,018 Land 136,018 Land (Continued)
		Long-term Borrowings Due Within A Year $ - - - - - - - - 59,131 520,000 28,000 16,568 - - - - - - - - - - - - -	Long-term Borrowings Over A Year $ 200,000 130,330 120,721 117,400 113,798 89,594 82,118 1,570 4,815,808 - 208,000 115,609 1,170,000 442,000 442,000 442,000 435,000 221,000 221,000 221,000 106,000 351,557 136,018 136,018 136,018

91 -

Type Expected Duration and Repayment Method Range of Interest Rates (%) Land Bank of Taiwan - Chung Lun Branch Note 5 3.1316 Taiwan Cooperative Bank - Dong Taipei Branch Note 5 3.1316 Agricultural Bank of Taiwan Note 5 3.1316 Chang Hwa Bank - His-Neihu Branch Note 5 3.1316 The Bank of East Asia Note 5 3.1316		Ending Balance	Ending Balance	Total Collateral $ 132,880 Land 68,009 Land 68,009 Land 68,009 Land 33,482 Land 5,718,177 $ 10,593,116
		Long-term Borrowings Due Within A Year $ - - - - - 564,568 $ 623,699	Long-term Borrowings Over A Year $ 132,880 68,009 68,009 68,009 33,482 5,153,609 $ 9,969,417

Note 1: As of December 31, 2023, the Corporation’s long-term financing facilities with banks amounted to approximately $28,073,925 thousand, net of long-term loans of $10,593,116 thousand (including long-term loans due within one year), which had available unutilized long-term borrowings facilities of $17,480,809 thousand.
Note 2: From September 23, 2022 to April 8, 2025, the principal is written off by 35% of the deduction of the estimated unit price for each period, the interest is paid monthly and the remaining principal is repaid once at maturity.

Note 3: From October 26, 2023 to September 14, 2026, the principal is written off by 20% of the deduction of the estimated unit price for each period, the interest is paid monthly and the remaining principal is repaid once at maturity.

Note 4: From April 14, 2021 to April 14, 2026, the interest is paid monthly and the remaining principal is repaid once at maturity.

Note 5: From August 18, 2023 to April 14, 2026, the interest is paid monthly and the remaining principal is repaid once at maturity.

(Concluded)

92 -

STATEMENT 10

BES ENGINEERING CORPORATION

STATEMENT OF CONSTRUCTION CONTRACT REVENUE AND CONSTRUCTION CONTRACT COST FOR THE YEAR ENDED DECEMBER 31, 2023 (In Thousands of New Taiwan Dollars)

		Construction	Construction			Construction	Construction
			Contract	Construction		Contract Gross
	Code		Revenue	Contract Cost		Profit (Loss)
1.	Engineering station
	B1C	$	1,562,744	$	1,429,340	$	133,404
	A9A		1,949,519		1,817,290		132,229
	A8C		1,646,506		1,538,240		108,266
	A8F-1		1,463,153		1,374,926		88,227
	A7B-1		950,429		867,969		82,460
	B0C		868,306		799,953		68,353
	B0A		766,761		706,817		59,944
	B1H-1		718,312		660,595		57,717
	A7A		815,146		757,825		57,321
	B0B		659,651		607,448		52,203
	A8B		780,844		732,991		47,853
	B1D		879,812		836,684		43,128
	A8F-2		494,992		455,219		39,773
	A6E		425,361		390,600		34,761
	A8F-3		226,170		203,473		22,697
	A6B-1		373,985		355,240		18,745
	A7F		283,064		264,335		18,729
	A6B-2		-		(15,940)		15,940
	B1F		143,616		132,073		11,543
	A5C		456,242		446,958		9,284
	B1E		84,194		77,429		6,765
	A6C		295,115		289,109		6,006
	A7B-2		33,137		27,939		5,198
	B2A		38,645		35,540		3,105
	B1B-1		124,147		122,426		1,721
	A7E		19,360		17,928		1,432
	B1H-2		7,914		7,278		636
	A7C		9,076		8,479		597
	B1B-2		41,053		40,484		569
	93C		20,368		20,085		283
	B2E		800		733		67
							(Continued)

93 -

Code A6F A4C A0B A7D 2. Development station 750	Construction Contract Revenue $ - - 142,857 - 16,281,279 945,920 $ 17,227,199	Construction Contract Cost Construction Contract Gross Profit (Loss) $ 1,617 $ (1,617) 1,814 (1,814) 151,279 (8,422) 28,000 (28,000) 15,192,176 1,089,103 897,651 48,269 $ 16,089,827 $ 1,137,372

(Concluded)

94 -

STATEMENT 11

BES ENGINEERING CORPORATION

STATEMENT OF OPERATING EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2023 (In Thousands of New Taiwan Dollars)

Item Selling and Marketing Expenses General and Administrative Expenses Research and Development Expenses Salary (Note 1) $ 30,962 $ 124,838 $ 13,752 Professional fees 7,520 22,497 14,001 Taxes and fees 117 40,747 - Advertising expenses 32,135 2,833 - Depreciation 3,984 21,170 3,493 Other (Note 2) 19,143 76,472 2,325 $ 93,861 $ 288,557 $ 33,571	Total $ 169,552 44,018 40,864 34,968 28,647 97,940 $ 415,989

Note 1: Salary includes salary, bonus and retirement expense.

Note 2: The amount of each item does not exceed 5% of the account balance.

95 -

STATEMENT 12

BES ENGINEERING CORPORATION

STATEMENT OF EMPLOYEE BENEFITS, DEPRECIATION AND AMORTIZATION EXPENSES BY FUNCTION FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022 (In Thousands of New Taiwan Dollars)

Item Employees benefits expense Salaries expenses Labor and health expenses Pension expenses Director’s emoluments Other employee benefits Depreciation expense			2023	Total $ 1,156,441 99,837 49,217 23,102 22,818 $ 1,351,415 $ 110,569			2022
		Operating Costs $ 1,016,031 89,639 43,177 - 21,092 $ 1,169,939 $ 81,922	Operating Expenses $ 140,410 10,198 6,040 23,102 1,726 $ 181,476 $ 28,647			Operating Costs $ 761,445 69,792 35,468 - 17,202 $ 883,907 $ 62,019	Operating Expenses $ 127,284 9,164 5,402 27,712 1,479 $ 171,041 $ 28,411	Total $ 888,729 78,956 40,870 27,712 18,681 $ 1,054,948 $ 90,430

Note 1: As of December 31, 2023 and 2022, the Corporation had 1,075 and 922 employees, respectively, of which 7 and 8 directors were not concurrently serving as employees, respectively.

Note 2. The average employee benefits expenses were $1,244 thousand and $1,124 thousand in 2023 and 2022, respectively.

Note 3. The average employees’ salary expenses were $1,083 thousand and $972 thousand in 2023 and 2022, respectively.

Note 4. The change in the average employees’ salary expenses was 11.4%.

Note 5: There was no supervisor in the Corporation, and audit committee has replaced supervisors’ authority as required by law.

Note 6: The compensation policies of the Corporation are as follows:

a. Directors

In accordance with Article 28 of the Corporation’s articles of incorporation, if the Corporation has a profit before tax in the current year, the Corporation shall allocate no less than 2% of the profit as employees’ compensation and no more than 2% of the profit as remuneration of directors. However, if the Corporation has accumulated losses, it should first reserve an amount for the offset of the loss. The above-mentioned distribution ratios are adopted by the resolution of the board of directors with more than two-thirds of the board of directors present and with the consent of more than half of the directors that are present, and are reported at the shareholders meeting. In addition, the “Board Performance Evaluation Method” of the Corporation is used as a reference for the remuneration of directors.

b. Managers

The salary level of the Corporation’s managers must be competitive in order to attract external outstanding talent and retain existing talent. Managers’ salaries are differentiated based on job responsibilities and performance in order to encourage managers to assume greater responsibilities and meet their performance goals. Managers are responsible for operations performance, and incentives should take into account the Corporation’s long-term and short-term performance.

c. Employees

The overall salary of the Corporation’s employees, which includes fixed and variable salary, is based on the principle of balancing internal fairness and external competitiveness. In addition, bonuses are promptly issued to share the results of operations with colleagues to attract, motivate and retain talent. Pursuant to the Corporation’s articles of incorporation, no less than 2% of annual pre-tax net income before deduction of employees’ compensation and remuneration of directors and supervisors shall be allocated as employees’ compensation. Employees’ compensation is determined based on job responsibilities and professional skills, and the amount of salary and bonus paid is based on individual performance and level of contribution to the Corporation.

96 -

AI assistant

BES — Audit Report / Information 2023

52136_rns_2023-11-13_c996933a-8ed1-40e1-ad11-c769e8bd0429.pdf

BES Engineering Corporation

INDEPENDENT AUDITORS’ REPORT

Opinion

Basis for Opinion

Key Audit Matters

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

Auditors’ Responsibilities for the Audit of the Parent Company Only Financial Statements

Notice to Readers

BES ENGINEERING CORPORATION

PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2023 AND 2022 (In Thousands of New Taiwan Dollars)

BES ENGINEERING CORPORATION

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

BES ENGINEERING CORPORATION

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

BES ENGINEERING CORPORATION

PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022 (In Thousands of New Taiwan Dollars)

BES ENGINEERING CORPORATION

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022 (In Thousands of New Taiwan Dollars)

BES ENGINEERING CORPORATION

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022 (In Thousands of New Taiwan Dollars)

BES ENGINEERING CORPORATION

1. GENERAL INFORMATION

2. APPROVAL OF FINANCIAL STATEMENTS

3. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS

4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

e. Inventories

h. Joint operations

2) Equity instruments

3) Financial liabilities

m. Provisions

1) Onerous contracts

2) Warranties

1) Revenue from the sale of goods

3) Construction contract revenue

q. Leases

1) The Corporation as lessor

2) The Corporation as lessee

r. Borrowing costs

5. MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

Key Sources of Estimation Uncertainty

a. Construction contracts

b. Write-down of inventories

6. CASH

7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS - CURRENT

8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

Investments in equity instruments at FVTOCI

9. FINANCIAL ASSETS AT AMORTIZED COST

10. CONSTRUCTION RECEIVABLES

Construction Receivables

11. ACCOUNTS RECEIVABLE ON THE DEVELOPMENT OF INDUSTRIAL DISTRICTS

12. BUILDINGS AND LAND HELD FOR SALE, NET AND CONSTRUCTION IN PROGRESS

13. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

14. JOINT OPERATIONS

a. Yulon Town Joint Venture

b. Twin Tower Joint Venture

15. PROPERTY, PLANT AND EQUIPMENT

16. LEASE ARRANGEMENTS

a. Right-of-use assets

b. Lease liabilities

c. Other lease information

17. INVESTMENT PROPERTIES

18. BORROWINGS

a. Short-term borrowings

b. Short-term bills payable

19. TRADE PAYABLES

20. ACCOUNTS PAYABLE FOR THE DEVELOPMENT OF INDUSTRIAL DISTRICTS

21. PROVISIONS

22. RETIREMENT BENEFIT PLANS

a. Defined contribution plan

b. Defined benefit plan

23. MATURITY ANALYSIS OF ASSETS AND LIABILITIES

24. EQUITY

Ordinary shares

b. Capital surplus

d. Special reserve

e. Other equity items

25. REVENUE

BES Audit Report / Information 2023