BESTEC — Audit Report / Information 2022

Nov 14, 2022

Bestec Power Electronics Co., Ltd.

Individual Financial Statements and Auditor's Report Year 2022 and Year 2021

Address: No. 69, Keji 1st Road, Guishan District, Taoyuan City Tel ： (03)3286800

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§ Table of Contents §

Item Page 1. Cover 1 2. Contents 2 3. Auditor's Report 3～7 4. Balance Sheet of the Entity 8 5. Income Statement of the Entity 9～10 6. Statement of Changes in Equity 11 7. Statement of Cash Flows for the Individual Entity 12～13 8. Note of financial reports (1) Company History 14 (2) Date and procedure of approval of the financial report 14 (3) Application of new and revised standards, guidelines, and interpretations 14～16 (4) Summary of Significant Accounting Policies 16～28 (5) Critical accounting judgments, estimates and key sources of assumption uncertainty 28～29 (6) Explanation of Significant Accounting Items 29～62 (7) Related Party Transactions 62～64 (8) Pledges Assets 64 (9) Significant Contingent Liabilities and Unrecognized Contractual Commitments 64 (10) Significant Losses from Disasters - (11) Significant Post-Period Events 64 (12) Others 65～66 (13) Disclosures in the Notes to the Financial Statements 1. Information on Material Transactions 66、69～71 2. Information on Reinvestment in Other Companies 66、69～71 3. Investment Information on Mainland China 66～68、72～73 4. Information of Major Shareholders 68、75 (14) Department Information - 9. Schedule of Major Accounting Items 76～92

Financial reports Footnote No. - - - - - - - 1. 2. 3 4 5 6～2 4 25 26 27 - 28 27 30 30 30 30 - -

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Accountant’s audit report

To Bestec Power Electronics Co., Ltd.

Audit Opinion

The individual balance sheets of Bestec Power Electronics Co., Ltd. for the year of 2021 and 2022 and the period from January 1[st] to December 31[st] of 2021 and 2022 as well as the individual comprehensive income statements, individual equity change statements, individual cash flow statements, and individual financial report notes (including a summary of significant accounting policies) have been audited and completed by our accountant.

Based on our audit work conducted in accordance with the Regulations Governing the Audit Signatures of Certified Public Accountants and the Auditing Standards, we, as accountants, are of the opinion that the aforementioned individual financial report is prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and is sufficient to express the financial condition of Bestec Power Electronics Co., Ltd. for the year of 2022 and the period from January 1[st] to December 31[st] of 2021 and 2022, as well as the individual financial performance and individual cash flow for the period.

Basis for opinion

In accordance with our responsibility under the aforementioned standards, we further explain our responsibilities as accountants in the audit report of the individual financial report. The personnel in our accounting firm who are subject to the independence regulations have maintained independence and fulfilled other responsibilities under the professional ethics regulations for accountants with respect to Bestec Power Electronics Co., Ltd. We believe that we have obtained sufficient and appropriate audit evidence to form the basis of our audit opinion.

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Key audit matters

Based on our professional judgment, the key audit matters refer to the most important items in the audit of the individual financial report of Bestec Power Electronics Co., Ltd. for the year of 2022. These matters were thoroughly examined during the audit of the parent company's overall financial reports, and they have been taken into consideration in the formation of our audit opinion. However, we do not express a separate opinion on these matters.

The key audit matters regarding the financial statements of Bestec Power Electronics Co., Ltd. for the year 111 of the Republic of China are as follows: Sales revenue - sales revenue from a specific customer's authenticity

The net sales revenue of Bestec Power Electronics Co., Ltd. for the year of 2022 was NTD 407,295 thousand, an increase of approximately 17% compared to the net sales revenue of NTD 348,329 thousand for the year of 2021. Significant growth was observed in the net sales revenue from a specific customer in the year of 2022 compared to the year of 2021, which accounted for a significant portion of the overall sales revenue. Therefore, the authenticity of the sales revenue from that specific customer in the year of 2022 is identified as a key audit matter.

Please refer to Note 4(11) and Note 18 of the financial statements for accounting policies related to revenue recognition and relevant information disclosure.

The main audit procedures performed by the auditor in response to this key audit matter are as follows:

1. Understand the effectiveness of the main internal control system designs and implementation related to testing the authenticity of revenue recognition. Evaluate the appropriateness of the revenue recognition accounting policies adopted by the management.

2. Select and test the authenticity of revenue recognition by examining original purchase orders, shipping documents, and invoices.

3. Review the collection data and the occurrence of post-period sales returns and allowances to confirm whether there are any abnormal situations.

Responsibilities of management and those charged with governance for the parent company only financial report

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The management of Bestec Power Electronics Co., Ltd. is responsible for the preparation and fair presentation of the company's financial report in accordance with the applicable accounting standards. This responsibility includes maintaining adequate internal controls to ensure that the financial report is free from material misstatement due to fraud or error.

In addition to preparing the financial report, the management is also responsible for evaluating the company's ability to continue as a going concern, disclosing relevant information, and selecting appropriate accounting policies.

Bestec Power Electronics Co., Ltd. and its governing body, including the audit committee, are responsible for overseeing the financial reporting process.

Account's responsibilities for the audit of parent company only financial report

The purpose of our audit of the individual financial statements is to obtain reasonable assurance that the individual financial statements as a whole are free from material misstatement, whether caused by fraud or error, and to issue an audit report thereon. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with auditing standards will always detect a material misstatement when it exists. Misstatements may arise from fraud or errors. A misstated dollar amount, individually or in the aggregate, that could be reasonable predicted to influence the economic decision of the user of the parent company only financial reports can be viewed as material.

Our auditor exercised professional judgment and skepticism in accordance with the auditing standards. We also performed the following tasks:

1. We identified and assessed the risks of material misstatement of the parent company only financial reports, whether due to fraud or errors, designed and performed audit procedures according to those risks, and obtained audit evidence that can sufficiently and appropriately form the basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for the one resulting from error because fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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1. The auditor obtains the necessary understanding of internal controls related to the audit, in order to design appropriate audit procedures for the circumstances at that time, but the purpose is not to express an opinion on the effectiveness of the internal controls of Bestec Power Electronics Co., Ltd.

2. We evaluated the appropriateness of accounting policies adopted and the reasonableness of accounting estimates and related disclosures made by management.

3. Based on the audit evidence obtained, the auditor draws a conclusion on the appropriateness of the management's use of the going concern basis of accounting and whether there is a significant uncertainty that may cast doubt on the company's ability to continue as a going concern. If the auditor considers that such events or circumstances give rise to significant uncertainty, the auditor must draw attention to the related disclosures in the financial report in the audit report or modify the audit opinion if the disclosures are inadequate. The auditor's conclusion is based on the audit evidence obtained up to the date of the audit report. However, future events or circumstances may lead to the company's inability to continue as a going concern.

4. Evaluate the overall presentation, structure, and content of the financial report (including related notes) and whether the financial report provides appropriate expression of related transactions and events.

5. Obtain sufficient and appropriate audit evidence on the financial information of the components of the company to express an opinion on the financial report. The auditor is responsible for directing, supervising, and performing the audit engagement and for forming an audit opinion on the company.

We have communicated with those charged with governance regarding the planned scope and the timing of the audit as well as material audit findings (including significant internal control shortcomings identified in the audit).

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We have also provided those charged with governance the statement that the personnel of our accounting firm subject to the requirements of independence have complied with the requirements of independence of the code of professional ethics of certified public accountants and communicate with those charged with governance relationships and other matters that may influence our independence (including related preventive measures).

The accountant has identified the key audit matters for the audit of the individual financial statements of United Electronic Corporation Limited for the year 2022 based on communication with the governance unit. We described these matters in the accountant’s report, unless the laws and regulations prohibit such disclosure or under rare condition that we decide not to communicate a given matter because the negative impact from such communication may override its public benefits under reasonable assumption.

Deloitte Taiwan Accountant Jian-Ming Yan Accountant Hsiu-Chun Huang

Approval Number from Financial Supervisory Commission Financial Supervisory Commission Approval Number: JG-Yin-Zhuan-Zi 1000028068

Securities and Futures Bureau Approval Number: TCSC-Liu-Zi 0920123784

March 28,2023

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Bestec Power Electronics Co., Ltd. Parent Company Only Balance Sheets As of December 31, 2022 and 2021

Unit: NT$ thousands

Code 1100 1170 1180 1200 1210 1220 130X 1470 11XX 1550 1600 1780 1840 1920 1975 15XX 1XXX Code 2100 2170 2180 2219 2220 2322 2399 21XX 2540 2570 2645 25XX 2XXX 3110 3210 3271 3200 3350 3410 3XXX	Assets Current Assets Cash and Cash Equivalents (Note 4 and 5) Net accounts receivable (Note 4, 5 and 7) Accounts Receivable - Related Parties (Note 4, 5, 7 and 25) Other receivables (Note 4 and 7) Other accounts receivable - related parties (Note 4, 7 and 25) Current tax assets (Note 4 and 20) Inventory (Note 4, 5 and 8) Other current assets (Note 13) Total Current Assets Non-current assets Acquisition of investments accounted for using the equity method (Note 4 and 9) Property, plant, and equipment (Note 4, 10, 14 and 17) Intangible Assets (Note 4 and 12) Deferred tax assets (Note 4, 5 and 20) Deposits Received as Collateral (Note 17) Net defined benefit assets - non-current (Note 4 and 16) Total Non-Current Assets Total Assets Liabilityand equity Current Liabilities Short-term borrowings (Note 4, 10, 14 and 26) Accounts payable Accounts payables - related parties ( Note 25） Other accounts payable (Note 15) Accounts payable - related parties (Note 15 and 25) Current portion of long-term loans payable (Note 4, 10, 14 and 26) Other current liabilities (Note 15) Total current liabilities Non-current liabilities Long-term borrowings (Note 4, 10, 14 and 26) Deferred income tax liabilities (Note 4, 5 and 20) Deposits as Guarantees Total non-current liabilities Total liabilities Equity (Note 4, 17, 20 and 22) Capital stocks Common Stock Capital surplus Share premium Employee stock options Total Capital Surplus Accumulated losses Accumulated deficits to be covered Other equity Exchange difference for conversion of financial statements of foreign operating institutions Total equity Total liabilities and equity		December 31,2021 Amount % $ 175,880 12 154,967 10 - - 694 - 597 - 159 - 30 - 25,264 2 357,591 24 645,949 44 456,076 31 167 - 1,758 - 12,646 1 7,370 - 1,123,966 76 $ 1,481,557 100 $ 184,000 12 2,000 - 140,056 10 8,985 1 - - 256,400 17 12,406 1 603,847 41 169,667 12 6,672 - 2,959 - 179,298 12 783,145 53 706,840 48 877 - 4,029 - 4,906 - 5,632) - 7,702) ( 1) 698,412 47 $ 1,481,557 100		December 31,2021	December 31,2021
			Amount $ 175,880 154,967 - 694 597 159 30 25,264 357,591 645,949 456,076 167 1,758 12,646 7,370 1,123,966 $ 1,481,557 $ 184,000 2,000 140,056 8,985 - 256,400 12,406 603,847 169,667 6,672 2,959 179,298 783,145 706,840 877 4,029 4,906 5,632) 7,702) 698,412 $ 1,481,557		Amount $ 173,499 87,032 538 328 - 229 92 22,419 284,137 693,418 257,741 879 1,884 5,688 6,004 965,614 $ 1,249,751 $ 184,000 2,000 79,034 9,739 8,724 28,000 12,409 323,906 258,067 985 2,016 261,068 584,974 704,909 272 4,405 4,677 26,388) 18,421) 664,777 $ 1,249,751	%
		( (		( (		14 7 - - - - - 2 23 56 21 - - - - 77 100 15 - 6 1 1 2 1 26 21 - - 21 47 56 - - - ( 2) ( 1) 53 100

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

Chairman: Chen Mingzhi

Chief Accounting Officer: Yeh Wen Bin

General Manager: Chen Mingzhi

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Bestec Power Electronics Co., Ltd.

Parent Company Only Statements of Comprehensive Income Year 2022 and January 1 to December 31, 2021

Unit: NT$ thousands, except earnings (loss) per share in NT$

C o d e Operating revenue (Note 4, 18 and 25) 4110 Sales revenue 4170 Sales return 4190 Sales allowance 4000 Operating revenue 5000 Operating cost (Note 8 and 25) 5900 Operating gross profit Operating expenses (Note 8, 10, 11, 16, 19, 22 and 25) 6100 Selling expenses 6200 Management expense 6300 Research and development expenses. 6000 Total operating expenses 6900 Net loss from operations Non-operating income and expenses 7100 Interest revenue (Note 4 and 19) 7190 Other revenue (Note 10, 19 and 25) 7070 Share of profit or loss of equity method investees (Note 9) 7050 Finance costs (Note 19) 7225 Loss on disposal of Investment (Note 9) 7230 Net gain (loss) on foreign currency exchange 7000 Total non-operating income and expenses	Year 2022 Amount % $ 407,341 100 ( 4 ) - ( 42) - 407,295 100 369,216 91 38,079 9 378 - 34,707 8 6,395 2 41,480 10 ( 3,401) ( 1) 1,885 - 23,220 6 2,576 1 ( 9,871 ) ( 2 ) ( 9,129 ) ( 2 ) 17,358 4 26,039 7	Year 2021	Year 2021
	Amount $ 407,341 ( 4 ) ( 42) 407,295 369,216 38,079 378 34,707 6,395 41,480 ( 3,401) 1,885 23,220 2,576 ( 9,871 ) ( 9,129 ) 17,358 26,039	Amount $ 348,965 ( 10 ) ( 626) 348,329 317,716 30,613 4,039 38,813 12,847 55,699 ( 25,086) 336 10,336 1,902 ( 7,686 ) - ( 5,350) ( 462)	%
			100 - - 100 92 8 1 11 4 16 ( 8) - 3 1 ( 2 ) - ( 2) -

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C o d e 7900 Profit (loss) before tax 7950 Income tax expense (Note 4, 5 and 20) 8200 Net income (loss) for the year Other comprehensive income 8310 Items not to be reclassified into profit or loss 8311 Remeasurements of defined benefit pension plans (Note 4 and 16) 8360 Items may be subsequently reclassified to profit/loss 8361 Exchange difference for conversion of financial statements of foreign operating institutions (Note 4, 9 and 20) 8399 Income tax of items that may be reclassified (Note 4 and 20) 8300 Net amount of other comprehensive income (loss) for the current year, after tax 8500 Total comprehensive income of the current year Earnings (loss) per share (Note 21) 9750 Basic 9850 Diluted		Year 2022 Amount ％ $ 22,638 6 3,122) ( 1) 19,516 5 1,240 13,399 3 2,680) - 10,719 3 11,959 3 $ 31,475 8 $ 0.28 $ 0.27	Year 2021	Year 2021
		Amount $ 22,638 3,122) 19,516 1,240 13,399 2,680) 10,719 11,959 $ 31,475 $ 0.28 $ 0.27	Amount ( $ 25,548 ) ( 879) ( 26,427) 217 ( 10,478 ) 2,095 ( 8,383) ( 8,166) ($ 34,593) ($ 0.37) ($ 0.37)	％
	( (			( 8 ) - ( 8) - ( 3 ) 1 ( 2) ( 2) (10)

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

Chairman: Chen Mingzhi General Manager: Chen Mingzhi Accounting Manager: Ye Wenbin

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Bestec Power Electronics Co., Ltd. Statement of Changes in Equity

Year 2022 and January 1 to December 31, 2021

Unit: NT$ thousands

Code A1 January 1, 2021 balance F1 Accumulated deficits to be covered by capital decrease N1 Employee stock options issued by the company G1 Cancellation of Employee Stock Options M7 Changes in ownership interests of subsidiaries D1 Net loss in 2021 D3 Other comprehensive income after tax in 2021 D5 Total comprehensive profit and loss in 2021 Z1 December 31, 2021 balance T1 Employee stock options issued by the company N1 Employee stock option exercise G1 Cancellation of Employee Stock Options D1 Net income in 2022 D3 Other comprehensive income after tax in 2022 D5 Total comprehensive profit and loss in 2022 Z1 December 31, 2022 balance	Share capital (Note 17) Number of shares (1000 shares) Amount 98,570 $ 985,696 ( 28,079 ) ( 280,787 ) - - - - - - - - - - - - 70,491 704,909 - - 193 1,931 - - - - - - - - 70,684 $ 706,840	Share capital (Note 17) Number of shares (1000 shares) Amount 98,570 $ 985,696 ( 28,079 ) ( 280,787 ) - - - - - - - - - - - - 70,491 704,909 - - 193 1,931 - - - - - - - - 70,684 $ 706,840	Capital surplus (Note 17)	Capital surplus (Note 17)	Capital surplus (Note 17)	Total $ 4,177 - 500 - - - - - 4,677 133 96 - - - - $ 4,906	Accumulated losses (Note 17) ( $ 280,787 ) 280,787 - - ( 178 ) ( 26,427 ) 217 ( 26,210) ( 26,388 ) - - - 19,516 1,240 20,756 ($ 5,632)	Other equity Foreign currency translation adjustment Translation of Financial Statements of Foreign Operations statements (Note 4 and 10) (Note 7 and 20) ( $ 10,038 ) - - - - - ( 8,383) ( 8,383) ( 18,421 ) - - - - 10,719 10,719 ($ 7,702)		Total equity
	Number of shares (1000 shares) 98,570 ( 28,079 ) - - - - - - 70,491 - 193 - - - - 70,684		Share premium $ 47 - - 225 - - - - 272 - 562 43 - - - $ 877	Employee stock options $ 4,130 - 500 ( 225 ) - - - - 4,405 133 ( 466 ) ( 43 ) - - - $ 4,029
	(	(		( ( (			( ( ( ( ( (	( ( ( ( (	( ( ( (	$ 699,048 - 500 - 178 ) 26,427 ) 8,166) 34,593) 664,777 133 2,027 - 19,516 11,959 31,475 $ 698,412

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

Chairman: Chen Mingzhi

General Manager: Chen Mingzhi Accounting Manager: Ye Wenbin

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Bestec Power Electronics Co., Ltd. Parent company only statements of cash flows Year 2022 and January 1 to December 31, 2021

Unit: NT$ thousands

Code Cash flows from operating activities A10000 This year's profit (loss) before tax A20010 Revenue/expenses not affecting the cash flows A20100 Depreciation expenses A20200 Amortization expense A20300 Expected credit (loss) recovery gain A20900 Finance costs A21200 Interest income A21900 Share-based compensation cost for employee stock options A22400 Share of profit or loss of subsidiaries accounted for using the equity method A23100 Loss on disposal of investment A23700 Inventory Obsolescence and Impairment Loss (Reversal of Gain) A24100 Net loss of Foreign exchange differences A29900 Contractual liabilities A30000 Changes in net operating assets and liabilities A31150 Accounts receivable A31180 Other receivables A31200 Inventories A31240 Other Current Assets A31990 Net defined benefit assets - non-current A32150 Accounts payable A32180 Other accounts payable A32230 Other current liabilities A33000 Cash generated (used) from operations A33100 Interests received A33300 Interest paid A33500 Income tax refunded AAAA Net cash inflows (outflows) from operating activities Cash flow from investing activities B01800 Acquisition of long-term equity investments accounted for by the equity method B02700 Acquisition of property, plants, and equipment	Year 2022 $ 22,638 11,895 712 ( 65 ) 9,871 ( 1,885 ) 133 ( 2,576 ) 9,129 36 1,363 ( 1,174 ) ( 68,591 ) ( 83 ) 26 ( 2,844 ) ( 127 ) 62,685 ( 949 ) 1,171 41,365 1,595 ( 9,673 ) 81 33,368 - ( 210,230 )	Year 2021
		( $ 25,548 ) 12,713 904 66 7,686 ( 336 ) 500 ( 1,902 ) - ( 3,917 ) 862 ( 1,174 ) ( 32,622 ) 247 3,839 719 ( 110 ) ( 81,864 ) ( 13 ) ( 114) ( 120,064 ) 348 ( 7,694 ) 556 ( 126,854) ( 4,186 ) -

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Code B03700 Increase in guarantee deposits paid B04300 Increase in other receivables - related parties BBBB Net cash outflows from investment activities Cash flows from financing activities C00200 Decrease in short-term borrowings C01600 Borrowing of long-term loans C01700 Payments of long-term borrowings C03000 Increase (decrease) of Deposits as Guarantees C03700 Decrease in other accounts payable - related parties C04800 Employee stock option C05500 Return of investment by liquidation/capital reduction of equity-method investee CCCC Net cash inflows from fundraising activities EEEE Net Increase (decrease) of Cash and Cash Equivalents E00100 Beginning cash and cash equivalents balance E00200 Year-end balance of cash and cash equivalents	Year 2022 ( $ 6,958 ) ( 539) ( 217,727) - 168,000 ( 28,000 ) 943 ( 10,545 ) 2,027 54,315 186,740 2,381 173,499 $ 175,880	Year 2021
		( $ 5,643 ) - ( 9,829) ( 20,000 ) - ( 30,778 ) ( 165 ) ( 2,117 ) - 53,080 20 ( 136,663 ) 310,162 $ 173,499

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

Chairman: Chen Mingzhi General Manager: Chen Mingzhi Accounting Manager: Ye Wenbin

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Bestec Power Electronics Co., Ltd.

Note of Financial Report

From January 1 to December 31 of 2021 and 2022

(unless otherwise indicated, all amounts are in thousands of New Taiwan Dollars)

1. Company History

Bestec Power Electronics Co., Ltd. (hereinafter referred to as "the Company") was established in February 1988, mainly engaged in the manufacturing and trading of switching power supplies, IoT cloud server power supplies, wireless chargers, high-power, high-efficiency, high-density power supplies for gaming, power converters, and other related products.

The Company's stock has been listed on the Taiwan Stock Exchange since March 2008.

The financial statements of the Company are presented in New Taiwan dollars, which is the functional currency of the Company.

1. Date and procedure of approval of the financial report

The individual financial report was approved by the board of directors on March 22, 2023.

1. Application of Newly Issued or Revised Accounting Standards and Interpretations

2. (1) The initial adoption of International Financial Reporting Standards (IFRSs), International Accounting Standards (IASs), Interpretations (IFRICs), and Standing Interpretations Committee (SICs) endorsed and issued by the Financial Supervisory Commission (FSC) (referred to as "IFRSs").

The application of the revised IFRSs endorsed and issued by the FSC will not result in significant changes in the Company's accounting policies.

(2) IFRSs approved by the FSC applicable in 2023

s approved by the FSC applicable in 2023
Applicability of newly issued / revised /amended standards and interpretations Revision of IAS 1 "Disclosure of Accounting Policies" Revision of IAS 8 "Definition of Accounting Estimates" The amendment to IAS 12 "Deferred Tax	Effective date of IASB issuance
	January 1, 2023 ( Note 1 ) January 1, 2023 ( Note 2 ) January 1, 2023 ( Note 3 )

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Related to Assets and Liabilities Arising from a Single Transaction or Event".

• Note 1: This amendment applies to annual reporting periods beginning on or after January 1, 2023.

• Note 2: The amendment shall be applied to changes in accounting estimates and accounting policies that occur during the reporting period beginning on or after January 1, 2023.

• Note 3: The amendment applies to transactions occurring on or after January 1, 2022, except for temporary differences relating to leases and decommissioning obligations recognized for deferred tax purposes as of January 1, 2022.

As of the date of issuance of this financial report, the Company has assessed that any other amendments or interpretations of standards would not have a significant impact on the financial position and financial performance.

• (3) IFRSs issued by the IASB but not yet approved and effective by FSC

Applicability of newly issued / revised Effective date of the /amended standards and interpretations IASB's issued (Note 1) Amendment to IFRS 10 and IAS 28 "Sales or Undecided Contributions of Assets between an Investor and its Associates or Joint Ventures" Amendment to IFRS 16 "Leases: Lease liability January 1, 2024 ( Note 2 ) in a sale and leaseback" IFRS 17 "Insurance Contracts" January 1, 2023 Amendment to IFRS 17 January 1, 2023 The amendment of IFRS 17 "Initial Application January 1, 2023 of IFRS 17 and IFRS 9 - Comparative Information" The amendment of IAS 1 "Classification of January 1, 2024 Liabilities as Current or Non-current" The amendment of IAS 1 "Non-current January 1, 2024 Liabilities with Contractual Maturities"

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

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

As of the date of issuance of this individual financial report, in addition to the aforementioned impact, the Company continues to assess the effects of other revisions to accounting standards and interpretations on its financial position and performance. Any related impact will be disclosed upon completion of the assessment.

1. Summary of Significant Accounting Policies

2. (1) Compliance Statement

This parent company only financial report is prepared in accordance with Regulations Governing Preparation of Financial Reports by Securities Issuers. (2) Preparation Foundation

Apart from the net defined benefit liability (asset) recognized by deducting the fair value of plan assets from the present value of the defined benefit obligation as determined, this individual financial report is prepared based on the historical cost.

Fair value measurement is classified into Level 1 to Level 3 according to the observability and significance of relevant inputs:

1. The input values of the first level refer to the quoted prices for identical assets or liabilities in active markets on the measurement date (without adjustment).

2. The input values of the second level refer to observable input values for the asset or liability, other than quoted prices included in level 1, either directly or indirectly derived from prices.

3. The input values of the third level refer to unobservable input values for the asset or liability.

When preparing the individual financial statements, the Company uses the equity method to account for its investments in subsidiaries. In order to ensure that the current year's profit or loss, other comprehensive income, and equity attributable to the owners of the Company in the individual financial statements are the same as those in the consolidated financial statements, certain accounting

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treatment differences between individual basis and consolidated basis are adjusted for "Investments accounted for using the equity method," "Share of profit or loss of investments accounted for using the equity method," and related equity items.

• (3) Classification of Assets and Liabilities as Current or Non-current. Current assets include:

• Primarily held for trading purposes.

• 2.Assets expected to be realized within 12 months after the balance sheet date.

• 3.Cash and cash equivalents (excluding those restricted for more than 12 months after the balance sheet date for the purpose of exchanging or settling liabilities).

• Current Liability includes:

• Primarily held for the purpose of trading;

• 2.Liabilities due for settlement within 12 months after the balance sheet date (even if long-term refinancing or restructuring payment arrangements have been completed between the balance sheet date and the date of the financial statements), and

• 3.Liabilities that cannot be unconditionally postponed beyond 12 months after the balance sheet date.

Non-current assets or liabilities are classified as such if they do not meet the criteria for current assets or liabilities mentioned above.

• (4) Foreign Currency

When the Company conducts transactions in currencies other than its functional currency, the transactions are recorded in the functional currency using the exchange rate on the transaction date.

Foreign currency monetary items are translated into the functional currency using the closing exchange rate on each balance sheet date. Exchange differences arising from settlement or translation of monetary items are recognized in the income statement in the current period.

Foreign currency non-monetary items that are measured at fair value are translated into the functional currency using the exchange rate on the date when the fair value was determined. The exchange differences arising from this

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translation are recognized in profit or loss in the year in which they arise, except for those recognized in other comprehensive income as part of the fair value gain or loss.

Foreign currency non-monetary items that are measured at historical cost are translated into the functional currency using the exchange rate on the transaction date and are not re-measured.

In preparing the individual financial statements, the Company and its overseas operating entities (including subsidiaries in countries or using currencies different from that of the Company) measure assets and liabilities using the exchange rates on each balance sheet date, and measure income and expenses using the average exchange rates for the period, with exchange differences recorded in other comprehensive income.

If the Company disposes of its equity interest in an overseas operating entity, the related accumulated exchange differences will be reclassified to profit or loss. (5) Inventories

Inventories consist of finished goods and are measured at the lower of cost and net realizable value on an individual item basis, except for items of the same category that are compared as a group. Net realizable value is the estimated selling price in the normal course of business less the estimated costs of completion and the estimated costs necessary to make the sale. The cost of inventories is determined using the weighted average method.

(6) Investment in Subsidiaries

The Company adopts the equity method to account for investments in subsidiaries.

Subsidiaries refer to entities that the Company has control over.

Under the equity method, the investment is initially recognized at cost, and subsequently adjusted for the Company's share of the subsidiaries' income or loss and other comprehensive income, as well as profit distribution. Additionally, changes in other equity of the subsidiaries that the Company is entitled to are recognized based on the Company's proportionate interest.

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When changes in the ownership of equity instruments of subsidiaries do not result in a loss of control by the Company, they are accounted for as equity transactions. The difference between the investment carrying amount and the fair value of consideration paid or received is directly recognized as equity.

When the Company's share of losses in a subsidiary equals or exceeds its equity interest in that subsidiary (including the carrying amount of the investment under the equity method and other long-term equity components that belong to the Company's net investment in the subsidiary), the losses continue to be recognized based on the Company's ownership percentage.

When assessing impairment, the Company considers the overall financial report and compares the cash generating units' recoverable amount with their carrying amount. If the recoverable amount of an asset increases in subsequent periods, any impairment loss previously recognized will be reversed and recognized as income. However, the carrying amount of the asset after the impairment loss reversal cannot exceed the carrying amount that would have been determined had no impairment loss been recognized, less any depreciation or amortization that would have been recognized.

When control over a subsidiary is lost, the remaining investment in the former subsidiary is remeasured at its fair value at the date when control is lost, and any difference between the fair value of the remaining investment and the carrying amount of the investment on the date control is lost, as well as any proceeds from the disposal of the investment, is recognized in the income statement for the current period. Furthermore, any amounts recognized in other comprehensive income related to the subsidiary are accounted for on the same basis as required for the disposal of assets or liabilities directly related to the Company.

Unrealized gains and losses on upstream transactions between the Company and its subsidiaries are eliminated in individual financial statements. Gains and losses from downstream and lateral transactions between the Company and its subsidiaries are recognized only to the extent that they are not related to the

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Company's equity interests in the subsidiaries, and are recorded in individual financial statements.

(7) Property, plants and equipment

Property, plant, and equipment are recognized at cost and subsequently measured at cost less accumulated depreciation and accumulated impairment losses.

Except for land, which is not subject to depreciation, other property, plant, and equipment are depreciated on a straight-line basis over their estimated useful lives, with each significant component being depreciated separately. The Company reviews its estimated useful lives, residual values, and depreciation methods at least at each year-end and defers the effect of accounting estimate changes.

When real estate, factories, and equipment are disposed of, the difference between the net proceeds and the book value of the asset shall be recognized in the income statement.

(8) Intangible Assets

1. Individually acquired

Intangible assets with limited useful lives acquired individually are initially measured at cost, and subsequently measured at cost less accumulated amortization and accumulated impairment losses. Intangible assets are amortized on a straight-line basis over their useful lives. The estimated useful lives, residual values and amortization methods are reviewed at each reporting date and adjusted prospectively if necessary to reflect the current expectations of the asset's useful life.

2. Disposal

When intangible assets are derecognized, any difference between the net proceeds from disposal and the carrying amount of the asset is recognized in the current period's income statemen

• (9)Regarding impairment of property, plant and equipment, and intangible assets

The company evaluates at each balance sheet date whether there are any indicators of impairment. If any impairment indicators exist, the recoverable

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amount of the asset is estimated. If it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

The recoverable amount is the higher of the fair value less costs of disposal and the value in use. If the recoverable amount of an individual asset or cash-generating unit is less than its carrying amount, the carrying amount of the asset or the cash-generating unit is reduced to its recoverable amount, and the impairment loss is recognized in the statement of income.

When a previously recognized impairment loss on an asset or cash-generating unit is reversed in a subsequent period, the carrying amount of the asset or cash-generating unit is increased to the revised recoverable amount, but not to exceed the carrying amount that would have been determined (net of depreciation or amortization) had no impairment loss been recognized for the asset or cash-generating unit in prior periods. The reversal of the impairment loss is recognized in profit or loss.

(10) Financial Instruments

Financial assets and financial liabilities are recognized in the individual balance sheet of the Company when they become one of the contractual terms of the tool.

When initially recognizing financial assets or financial liabilities, if they are not measured at fair value through profit or loss, they are measured at fair value plus transaction costs directly attributable to the acquisition or issuance of the financial asset or financial liability. Transaction costs directly attributable to the acquisition or issuance of financial assets or financial liabilities measured at fair value through profit or loss are immediately recognized in profit or loss.

1. Financial assets

The customary transactions of financial assets are recognized and derecognized on the accounting date of the transaction.

(1) Types of measurement

The financial assets held by the company are measured at amortized cost.

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Financial assets measured at amortized cost

If a financial asset held by the Company simultaneously satisfies the following two conditions, it shall be classified as a financial asset measured at amortized cost:

• A. It is held A. business model whose objective is to hold the financial asset in order to collect contractual cash flows; and

• B. Contractual terms give rise to cash flows on specified dates that are solely payments of principal and interest on the principal amount outstanding.

The financial assets held by the company are measured at amortized cost, including cash and cash equivalents, financial assets measured at amortized cost (including receivables from related parties), and other receivables (including receivables from related parties). After initial recognition, these financial assets are measured at the total amount of the carrying amount determined by the effective interest method, less any amortized cost impairment losses, and any foreign exchange gains or losses are recognized in profit or loss.

Except for the following two situations, interest income is calculated as the product of the effective interest rate and the total carrying amount of financial assets:

• A. For financial assets with credit impairments that are purchased or originated, interest income is calculated by multiplying the amortized cost of the financial asset by the post-credit-adjusted effective interest rate.

• B. For financial assets that are not purchased or originated with credit impairments, but subsequently become credit-impaired, interest income shall be calculated by multiplying the amortized cost of the financial asset by the effective interest rate from the next reporting period after the credit impairment.

The term "cash equivalents" includes short-term, highly liquid investments that are readily convertible to known amounts of cash and

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which are subject to an insignificant risk of changes in value, such as term deposits that have a maturity of three months or less from the date of acquisition and that are used to meet short-term cash commitments.

(2) Impairment of Financial Assets

The company evaluates impairment losses for financial assets measured at amortized cost (including accounts receivable) based on expected credit losses at each balance sheet date.

Allowance for doubtful accounts is recognized based on the expected credit losses over the remaining period of account receivable. For other financial assets, the Company first assesses whether there has been a significant increase in credit risk since initial recognition. If there has not been a significant increase, the Company recognizes allowance for impairment losses based on 12-month expected credit losses. If there has been a significant increase, the Company recognizes allowance for impairment losses based on the expected credit losses over the respective periods of existence.

Expected credit losses are weighted average credit losses using the risk of default as the weight. 12-month expected credit losses represent the expected credit losses resulting from default events that are possible within 12 months after the reporting date. The expected credit losses over the respective periods of existence represent the expected credit losses resulting from all possible default events during the expected periods of existence of the financial assets.

The impairment loss of all financial assets is reduced by adjusting their carrying amount through an allowance account.

(3) Disposal of Financial Assets

The Company only derecognizes financial assets when the rights to receive cash flows from the financial asset have expired or the Company has transferred the financial asset and has transferred substantially all risks and rewards of ownership to another entity.

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When financial assets measured at amortized cost are derecognized as a whole, any difference between the carrying amount and the consideration received is recognized in profit or loss.

2. Equity Instruments

Equity instruments issued by the Company are recognized at the amount of proceeds received, net of directly attributable issuance costs.

The recognition and derecognition of equity instruments held by the company itself are recorded under equity. Purchase, sale, issuance, or cancellation of the Company's own equity instruments are not recognized in the income statement.

3. Financial Liabilities

(1) Subsequent measurement

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

(2) Derecognition of financial liabilities

When financial liabilities are derecognized, the difference between the carrying amount and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognized in the income statement.

(11) Revenue Recognition

After identifying performance obligations in customer contracts, this company allocates transaction prices to each obligation and recognizes revenue upon satisfying each obligation.

Sales of goods revenue

The revenue from the sale of power supplies and power converters comes from the sale of goods. As the goods sold are priced and the customer has the right to use them at the designated location or upon shipment, and the customer bears the main responsibility for resale and the risk of obsolescence, the Company recognizes revenue and accounts receivable at that point in time.

(12)Leases

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At the contract inception date, the Company evaluates whether the contract is or contains a lease.

The Company is the Lessor.

If a lease transfers substantially all of the risks and rewards of ownership of an asset to the lessee, it is classified as a finance lease. All other leases are classified as operating leases. For operating leases, lease payments, net of any lease incentives, are recognized as income on a straight-line basis over the lease term.

Under operating leases, lease payments are recognized as revenue on a straight-line basis over the term of the lease. The direct incremental costs incurred in obtaining an operating lease are added to the carrying amount of the leased asset, and recognized as expenses on a straight-line basis over the lease term.

(13) Cost of Borrowings

All borrowing costs are recognized in profit or loss in the period in which they are incurred.

(14) Employee benefits

1. Short-term employee benefits

The related liabilities for short-term employee benefits are measured at the non-discounted amount expected to be paid in exchange for employee services.

2. Post-employment benefits

The determined amount of retirement benefits to be provided under the retirement plan should be recognized as expenses during the period in which the employees provide services.

The determined benefit cost (including service cost, net interest, and remeasurement) of the Defined Benefit Plan is calculated using the projected unit credit method. The service cost (current service cost) and net defined benefit liability (asset) net interest are recognized as employee benefit expenses when they are incurred. Remeasurement (including actuarial gains and losses and the return on plan assets after deducting interest) is recognized

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in other comprehensive income and included in retained earnings when it occurs and is not reclassified to profit or loss in subsequent periods.

The net defined benefit liability (asset) represents the provision for the Defined Benefit Retirement Plan (remaining amount). The net defined benefit asset cannot exceed the present value of the plan assets to be returned or the reduction of future contributions to be made from the plan.

(15) Share-based payment - employee stock options

Employee stock options are recognized as expenses on a straight-line basis during the vesting period based on the fair value of the equity instruments granted and the best estimate of the expected quantity to be received. The capital surplus - employee stock options is adjusted simultaneously. If the equity instruments are immediately vested on the grant date, the entire cost is recognized on the grant date.

The Company revises the estimated quantity of employee stock options expected to be received on every balance sheet date. If the original estimate is revised, the impact is recognized in profit or loss to reflect the revised estimate in cumulative expenses and simultaneously adjust the capital surplus - employee stock options.

(16) Income Tax

Income tax expenses represent the sum of current income taxes and deferred income taxes.

1. Current Income Taxes

The current income (loss) is determined based on the regulations established by each tax jurisdiction for income tax reporting, and used to calculate the payable (recoverable) income tax.

The income tax surcharge calculated in accordance with the Taiwan Income Tax Act on the undistributed earnings is recognized annually upon resolution by the shareholders' meeting.

The adjustment of income tax payable from previous years is included in the current income tax.

2. Deferred income tax

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Deferred income tax is calculated based on the temporary differences between the carrying amounts of assets and liabilities and the tax bases used for calculating taxable income.

Deferred income tax liabilities are generally recognized for all temporary differences that are likely to result in taxable income in the future. Deferred income tax assets are recognized when it is more likely than not that they will be used to offset taxable income from deductible temporary differences and losses available for carryforward.

Deferred income tax liabilities are recognized for all temporary differences related to investment in subsidiaries, except for those temporary differences that the Company can control the timing of their reversal and it is probable that the temporary differences will not reverse in the foreseeable future. In relation to such investments, deductible temporary differences are recognized as deferred income tax assets only when it is probable that sufficient taxable income will be available to realize the temporary differences and when it is expected to reverse within a foreseeable future.

The carrying amount of deferred income tax assets is reviewed at each balance sheet date and is reduced for any portion that it is no longer probable to be realized. The carrying amount of items not previously recognized as deferred income tax assets is reviewed at each balance sheet date and is increased for any portion that it is probable to be realized in the future.

Deferred income tax assets and liabilities are measured at the enacted or substantively enacted tax rates and laws expected to apply to the period in which the deferred income tax assets and liabilities are expected to be settled or realized. The measurement of deferred income tax liabilities and assets reflects the tax consequences that would arise from the manner in which the company expects, at the balance sheet date, to recover or settle the carrying amounts of its assets and liabilities.

3.The current and deferred income tax for the current year

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The current and deferred income tax is recognized in the income statement, except for the current and deferred income tax related to items recognized in other comprehensive income, which is recognized in other comprehensive income.

uncertainty

When adopting accounting policies, the management of the Company must make judgments, estimates and assumptions based on historical experience and other relevant factors for items that are not readily obtainable from other sources. Actual results may differ from estimates.

The company has taken into account the recent development of the COVID-19 epidemic in Taiwan and its potential impact on the economic environment in its estimation of significant accounting estimates related to cash flow projections, growth rates, discount rates, and profitability. Management will continue to review the estimates and underlying assumptions. If the revision of the estimates affects only the current period, it will be recognized in the current period. If the revision affects both the current and future periods, it will be recognized in both.

The uncertainty of the main sources of estimation and assumptions Income Tax

As of December 31, 2022 and December 31, 2021, the carrying amounts of deferred income tax assets related to unused tax losses were NT$1,758 thousand and NT$1,884 thousand, respectively. Due to the unpredictability of future profits, the company has not recognized NT$632,458 thousand and NT$645,527 thousand of tax losses as deferred income tax assets as of December 31, 2022 and December 31, 2021, respectively. The realizability of deferred income tax assets depends mainly on whether there will be sufficient profits or temporary differences taxable in the future. If actual profits in the future are less than expected, significant reversals of deferred income tax assets may occur, which will be recognized in the statement of comprehensive income when they occur.

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6. Cash and Cash Equivalents

and Cash Equivalents
Cash in Treasury and Petty Cash Current account deposits at banks Cash equivalents (investments with original maturities of three months or less) Bank time deposits	December 31, 2021 $ 593 79,067 96,220 $ 175,880	December 31, 2021
			$ 596 87,087 85,816 $ 173,499

Interest rate range of bank deposits as of the balance sheet date:

December 31, 2021 Current account deposits at banks 0.001%～1.05% Bank time deposits 4.26%～4.89% unts Receivable and Other Receivable December 31, 2021 Accounts receivable Measurement at amortized cost Total carrying amount $ 154,972 Less: Allowance for Doubtful Accounts ( 5) 154,967 Accounts receivable - related parties - $ 154,967 Other Receivable Other accounts receivable(including related parties) $ 1,291	December 31, 2021	December 31, 2021
	0.001%～0.20% 0.18%～0.22% December 31, 2021
	(	$ 87,102 70) 87,032 538 $ 87,570 $ 328

7. Accounts Receivable and Other Receivable

• (1) Accounts receivable

The average credit period for the company's sales of goods is 90 days, and accounts receivable are not interest-bearing. In order to reduce credit risk, the management of the company has assigned a dedicated team to determine credit limits, approve credit, and other monitoring procedures to ensure that appropriate

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actions are taken to collect overdue accounts receivable. In addition, the company reviews the recoverable amount of accounts receivable one by one on the balance sheet date to ensure that appropriate impairment losses are provided for accounts receivable that are not recoverable. Based on this, the management of the Company believes that the credit risk of the Company has significantly decreased.

The Company recognizes the provision for credit losses on accounts receivable based on the expected credit losses over the life of the receivables. The expected credit losses during the remaining period of existence are calculated using a provisioning matrix, which considers the customer's past default records, current financial status, and industry and economic conditions. As the credit loss historical experience of the company shows no significant difference in loss patterns among different customer groups, the provisioning matrix does not differentiate further among customer groups and only sets the expected credit loss rate based on the number of days’ receivables are outstanding.

If there is evidence that the counterparty is facing severe financial difficulties and the company cannot reasonably expect to recover the amount, for example, the counterparty is undergoing liquidation, the company will directly write off the related accounts receivable. However, the company will continue its recovery efforts, and any amounts recovered will be recognized in the income statement.

The company measures the allowance for doubtful accounts of accounts receivable based on the provisioning matrix as follows:

December 31, 2022

December 31,	2022
Expected Credit Loss Rate Total carrying amount Allowance for Credit Losses (Expected Credit Losses during the Remaining Lifetime of the Asset) Amortized cost	0～90 days - $ 154,965 - $ 154,965		91～180 days 5% $ 2 $ 2		181～270 days 10% $ - - $ -		271～360 days 20% $ - - $ -	More than 361 days 100% $ 5 ( 5) $ -		Total
								(	(	$ 154,972 5) $ 154,967

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December 31, 2021

December 31, 2021	December 31, 2021
0～90 days 91～180 days 181～270 days 271～360 days More than 361 days Total Expected Credit Loss Rate - 5% 10% 20% 100% Total carrying amount $ 85,787 $ 1,311 $ - $ - $ 4 $ 87,102 Allowance for Credit Losses (Expected Credit Losses during the Remaining Lifetime of the Asset) - ( 66) - - ( 4) ( 70) Amortized cost $ 85,787 $ 1,245 $ - $ - $ - $ 87,032 Changes in the allowance for loss for accounts receivables: Year 2022 Year 2021 Beginning balance $ 70 $ 4 Add: Provision for bad debts of the year - 66 Subtract: Impairment loss reversed in the current year. ( 65) - Ending balance $ 5 $ 70			Total
	$ 4 66 - $ 70

(2) Other Account Receivable

The other receivables mainly consist of rental receivables and expenses due from related parties. The Company has assessed the impairment loss on the other receivables as expected credit losses as of December 31, 2022 and December 31, 2021.

8. Inventories

tories
Finished goods	December 31, 2022 $ 30	December 31, 2021
			$ 92

The sales cost related to inventory for the years 2022 and 2021 were NT$369,216 thousand and NT$317,716 thousand, respectively. The sales cost includes provisions for inventory obsolescence and impairment of NT$36 thousand and a benefit from the reversal of inventory provisions of NT$3,917 t due to the sale of inventory for which inventory write-downs had been previously recognized in prior years.

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9. Equity Method Investments

y Method Investments
Investment in subsidiaries Baotai Construction Co., Ltd. Ninety-Nine Electronic Limited Wan Jhih Electronic Limited Bestec Power International Ltd. Lianyao Investment Co., Ltd. Bestec Biotechnology Co., LTD. Bestec Inv, Inc. Chien Chih Electronic Co., Ltd.	December 31, 2022 $ 168,504 152,616 123,764 112,758 76,713 10,645 949 - $ 645,949	December 31, 2021
			$ 170,824 148,624 121,125 107,068 80,471 10,663 1,051 53,592 $ 693,418

As of each balance sheet date, the Company owns 100% of the equity and voting rights of its subsidiaries.

• (1)In December 2002, the Company invested in Wan Jhih Electronic Limited (Wan Jhih) to engage in the trading of various technological products as its main business.

• (2)The Company invested USD 13,510 thousand in Ninety-Nine Electronic Limited. (Ninety-Nine) and obtained approval from the Investment Commission of the Ministry of Economic Affairs. Through Ninety-Nine, the Company invested USD 2,692 thousand in Bestec Power Electronics (Suzhou) Co., Ltd. (Suzhou Bestec), HKD 13,082 thousand and USD 8,293 thousand in Bestec Power Electronics (Dongguan) Co., Ltd. (Dongguan Bestec), respectively. Suzhou Bestec was dissolved and liquidated by December 31, 2021, and remitted USD 1,885 thousand in capital contributions in fiscal year 2021.

In order to revitalize its assets and improve shareholders' return on equity, the Company proposed to the board of directors on March 25, 2022 to adjust its business, operating scale, and costs by means such as releasing shares, waiving participation in cash increases in the aforementioned companies to introduce strategic investors, asset sales, or leasing, depending on market conditions and the situation of Ninety-Nine or Dongguan Bestec. On April 28, 2022, the board of directors approved the disposal of 100% equity of Dongguan Bestec in the amount

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of RMB 121,200 thousand. Furthermore, on December 29, 2022, the board of directors approved the agreement to transfer the remaining balance of RMB 80,000 thousand to Ninety-Nine subject to the original agreed transaction price, estimated deductions of the related cost of the equity transfer agreement of Dongguan Bestec, and other fees.

The local tax bureau is planning to adjust and increase the amount of tax to be paid and the deferred tax interest to be supplemented for Dongguan Bestec due to doubts about the "Implementation Measures for Special Tax Adjustments of the State Administration of Taxation of China". However, as the amount cannot be reliably estimated, this tax has not yet been included in the accounts.

• (3)In the year 2011, our company invested NTD 200,000 thousand to establish Baotai Construction Co., Ltd., mainly engaged in real estate development and trading.

• (4)On November 13, 2015, our company passed a resolution through the board of directors to invest NTD 10,000 thousand in Lianyao Investment Co., Ltd. to establish Fisherhman Co., Ltd. (Fisherman). On July 12, 2016, we further increased our investment by NTD 20,000 thousand. Fisherman was approved for dissolution and deregistration by the Taipei City Government on July 10, 2020, and the remaining capital of NTD 11,591 thousand was remitted back on February 5, 2021.

• (5)On May 11, 2017, our company passed a resolution through the board of directors to invest NTD 20,000 thousand to establish Bestec Biotechnology Co., LTD., which was approved and registered by the competent authority on July 3, 2017. It is mainly engaged in pet food-related businesses.

• (6)The company established Bestec Inv, Inc. with a capital of USD 1,000 thousand on May 11, 2017. Through Bestec Inv, Inc., the company invested USD 950 thousand to acquire a 95% stake in APX Power Technology, LLC, and obtained the remaining 5% stake in the form of intangible assets worth USD 50,000 (NTD 1,506 thousand) by offsetting the necessary property of APX Power Technology, LLC. On September 21, 2018, the board of directors passed a resolution to increase the capital of Bestec Inv, Inc. by USD 500 thousand, and through Bestec Inv, Inc., invested USD 494 thousand in APX Power Technology, LLC, which was actually

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remitted on September 28, 2018. The non-controlling interest was obtained by offsetting the necessary property of APX Power Technology, LLC with intangible assets worth USD 26,000 (NTD 794 thousand). On March 27, 2019, and January 20, 2021, the board of directors passed a resolution to further increase the capital of Bestec Inv, Inc. by USD 200 thousand and USD 150 thousand, respectively, and through Bestec Inv, Inc., invested in APX Power Technology, LLC. The capital was actually remitted on November 29, 2019, and February 23, 2021, respectively, and the company's shareholding ratio after the capital increase was 96% in both cases.

• (7) The company dissolved and liquidated Chien Chih Electronic Co., Ltd. on November 12, 2021. The remittance of the capital of USD 1,922 thousand was made on March 7, 2022, and an investment loss of NTD 9,128 thousand was recognized.

• (8) The company's subsidiary, Bestec Power Electronics (Dongguan) Co., Ltd., disposed of its subsidiary, Bestec Electronics(DongGuan) CO., LTD, on August 31, 2022. The company repurchased Bestec Electronics(DongGuan) CO., LTD through its subsidiary, Lianyao Investment Co., Ltd., on January 29, 2023. The company's substantive control over Bestec Electronics(DongGuan) CO., LTD did not transfer, and therefore, it is still included as a consolidated entity in the financial statements for the year 2022.

The share of profits and losses of the subsidiaries accounted for by the equity method in 2022 and 2021 was recognized based on the audited financial reports of each subsidiary for the corresponding period.

10.Real estate, plant and equipment.

estate, plant and equipment.
Self-use Business rental leasing	December 31, 2022 $ 425,269 30,807 $ 456,076	December 31, 2021
			$ 227,966 29,775 $ 257,741

(1) Self-use

use
Cost Balance on January 1, 2022	Land	Buildings and structures	Machinery and equipment	Transportati on Equipment	Leasehold improveme nts E q u i t y	Office equipment	Total
	$ 121,223	$ 220,659	$ 23,173	$ 5,064	$ 297	$ 14,830	$ 385,246

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Add Internal transfer Balance on December 31, 2022 Accumulated depreciation January 1, 2022 balance Depreciation expenses Internal transfer Balance on December 31, 2022 Net amount on December 31, 2022 Cost January 1, 2021 balance Internal transfer December 31, 2021 balance Accumulated depreciation January 1, 2021 balance Depreciation expenses Internal transfer December 31, 2021 balance Net amount on December 31, 2021	210,230 - ( 331,453 - - - ( - $ 331,453 $ 121,223 - ( 121,223 - - - ( - $ 121,223	- 7,987) 212,672 115,045 8,455 4,164) 119,336 $ 93,336 $ 221,468 809) 220,659 106,193 9,249 397) 115,045 $ 105,614	- - 23,173 22,496 410 - 22,906 $ 267 $ 23,173 - 23,173 22,067 429 - 22,496 $ 677	- - 5,064 5,064 - - 5,064 $ - $ 5,064 - 5,064 5,064 - - 5,064 $ -	- - 297 124 60 - 184 $ 113 $ 297 - 297 65 59 - 124 $ 173	- - ( 14,830 14,551 179 - ( 14,730 $ 100 $ 14,830 - ( 14,830 14,171 380 - ( 14,551 $ 279	210,230 7,987) 587,489 157,280 9,104 4,164) 162,220 $ 425,269 $ 386,055 809) 385,246 147,560 10,117 397) 157,280 $ 227,966

In this period, new land was acquired for 210,230 thousand NT dollars through bidding from the government. For more details, please refer to Note 17. Depreciation expenses are recognized on a straight-line basis over the following useful lives:

Buildings and structures
Factory buildings and
main office buildings	20 - 50 years
Electrical and mechanical
equipment	8 - 10 years
Engineering systems	5 - 15 years
Machinery and equipment	6 Years
Transportation Equipment	5 Years
Leasehold improvements	3 - 5 years
Office equipment	3 - 8 years

The amount of self-use real estate, factories, and equipment set as collateral for borrowings can be found in Note 14 and 26.

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(2) Rental income from operating leases

al income from operating leases
Cost January 1, 2022 balance Internal transfer December 31, 2022 balance Accumulated depreciation January 1, 2022 balance Depreciation expenses Internal transfer December 31, 2022 balance Net at December 31, 2022 Cost January 1, 2021 balance Internal transfer December 31, 2021 balance Accumulated depreciation January 1, 2021 balance Depreciation expenses Internal transfer December 31, 2021 balance Net at December 31, 2021	Buildings and structures
		$ 70,431 7,987 78,418 40,656 2,791 4,164 47,611 $ 30,807 $ 69,622 809 70,431 37,663 2,596 397 40,656 $ 29,775

The company leases out buildings and other assets for business purposes with lease terms of 2-3 years. At the end of the lease term, the lessee does not have a preferential purchase right to the assets.

The total future lease payments to be received from the operating leases are as follows:

ollows:
The first year The second year The third year The fourth year	December 31, 2022 $ 9,809 3,720 4,092 4,092 $ 21,713	December 31, 2021
			$ 8,705 5,688 - - $ 14,393

Depreciation expenses are recognized on a straight-line basis over the following useful lives:

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Buildings and structures
Primary office building	20 - 50 years
Electrical and mechanical
equipment	8 - 10 years
Engineering systems	5 - 15 years

The amount of self-use real estate, factories, and equipment set as collateral

for borrowings can be found in Note 14 and 26.

11. Lease Agreement

Other Lease Information

The company leases out buildings and other assets for business purposes with lease terms of 2-3 years.

terms of 2-3 years.
Lease expenses for low-value assets Total cash outflows from leases.		Year 2022 $ 17 $ 17)		Year 2021
	(		(	$ 18 $ 18)

The Company chooses to apply an exemption to recognize related right-of-use assets and lease liabilities for several office equipment leases that meet the low-value asset lease criteria.

12. Intangible Assets

ngible Assets
Cost Balance on January 1, 2022 and December 31, 2022 Accumulated amortization and impairment. January 1, 2022 balance Amortization expense December 31, 2022 balance Net at December 31, 2022 Cost Balance on January 1 and December 31, 2021 Accumulated amortization and impairment.	Cost of computer software
		$ 4,646 3,767 712 4,479 $ 167 $ 4,646

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January 1, 2021 balance Amortization expense December 31, 2021 balance Net at December 31, 2021	2,863 904 3,767 $ 879

Depreciation expenses are recognized on a straight-line basis and calculated based on the following estimated useful lives:

Cost of computer software

5 Years

13. Other Assets

r Assets
Current Offset against business tax payable Expense Prepaid Accounts Payable and Accrued Expenses	December 31, 2022 $ 21,307 2,408 1,549 $ 25,264	December 31, 2021
			$ 21,701 535 183 $ 22,419

14. Borrowings

• (1)Short-term borrowings.

-term borrowings.
Loans with collateral ( Note 26 ) Taiwan SME Bank (1) Unsecured loans Bank loans (2)	December 31, 2022 $ 24,000 160,000 $ 184,000	December 31, 2021
			$ 24,000 160,000 $ 184,000

• 1.The loan from the bank is secured by the mortgage of the company's land, houses, and buildings in Sanchong (please refer to Note 26). The loan's final maturity date is April 30, 112, and as of December 31, 111, and December 31, 110, the effective annual interest rates were 2.052% and 1.38%, respectively.

• 2.The interest rates for revolving bank loans were 1.910% to 2.375% and 1.40% to

• 1.60% as of December 31, 2021 and 2020, respectively.

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(2) Long-term Loans

-term Loans
Loans with collateral ( Note 26 ) Co-operative Bank loan (1) Chang Hwa Commercial Bank (2) Subtotal Unsecured loans Taiwan SME Bank (3) Less: Portion due within one year Long-term borrowings	December 31, 2022 $ 252,400 168,000 420,400 5,667 426,067 (256,400) $ 169,667	December 31, 2021
	(	(	$ 276,400 - 276,400 9,667 286,067 28,000) $ 258,067

• 1.The bank loan is secured by the land, buildings, and structures of the Hwa Ya Industrial Park owned by the Company (see Note 30). The principal is repaid on a monthly basis, and the loan matures on September 20, 2023. The effective annual interest rates for the years ended December 31, 2021 and 2020 were 2.101% and 1.600%, respectively, and are subject to adjustment. According to the loan contract, the collateral of the Company needs to be insured against property damage, maintain its appraised value, and sign an agreement that the land will not be developed.

• 2.The bank loan is secured by the land designated for industrial use in the second phase of the Machouhou Industrial Park owned by the Company. The loan matures on October 5, 2024 (see Note 26). The effective annual interest rate for the year ended December 31, 2021 was 1.750%. (December 31, 2021: None)

• 3.The principal of the bank loan is repaid on a monthly basis, and the loan matures on May 29, 2025. The effective annual interest rates for the years ended December 31, 2021 and 2020 were 2.175% and 1.800%, respectively.

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15. Other liability

er liability
Current Other accounts payable Compensation and bonuses payable Expense payable Interests payable Accrued vacation pay Accounts payable - related parties Other liability Contractual liabilities Temporary and Collect-on-Delivery Payments	December 31, 2022 $ 4,533 3,839 468 145 8,985 - $ 8,985 $ 9,010 3,396 $ 12,406	December 31, 2021
			$ 5,489 3,783 269 198 9,739 8,724 $ 18,463 $ 9,010 3,399 $ 12,409

16.Retirement Benefits Plan

(1)Defined Contribution Plan

The retirement benefits plan adopted by the Company under the "Labor Retirement Benefit Act" is a defined contribution retirement plan managed by the government. The Company contributes 6% of employees' monthly salary to their personal accounts in the labor insurance system.

(2)Defined Benefit Plan

The retirement benefits plan established by the Company in accordance with the "Labor Standards Act" is a defined benefit retirement plan managed by the government. Retirement benefits are calculated based on employees' length of service and average salary for the six months prior to the approved retirement date. The Company contributes 2% of employees' total monthly salary to the Labor Retirement Reserve Supervisory Commission, which deposits the funds in a special account at the Bank of Taiwan. If the estimated balance in the account is not sufficient to pay the expected retirement benefits for employees who meet

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the retirement conditions within the next year, the Company will make up the difference by the end of March of the following year. The special account is managed by the Labor Pension Fund Supervisory Board, and the Company has no control over investment management strategies.

The amount of the defined benefit plan included in the individual balance sheet is shown below:

t is shown below:
Present value defined benefit obligation Fair value of plan assets Remaining Allocations Net Defined Benefit Assets	December 31, 2022 $ 5,671 ( 13,041) ( 7,370) ($ 7,370)	December 31, 2021
		( ( (	$ 5,896 11,900) 6,004) $ 6,004)

Changes in Net Defined Benefit Assets are as follows:

January 1, 2022 Service Cost Current service costs Interest expense (income) Recognized in income statement Re-measurement Amount Plan Asset Return (excluding the amount included in net interest) Actuarial Gain - Experience Adjustments Recognized in other comprehensive income (loss) Employer Contributions December 31, 2021 Service Cost Current service costs Interest expense (income) Recognized in income	Present value of defined benefit obligation $ 5,880 49 22 71 - ( 55) ( 55) - 5,896 50 37 87	Fair value of plan assets ($ 11,557) - ( 43) ( 43) ( 162 ) - ( 162) ( 138) ( 11,900) - ( 75) ( 75)	Net defined benefit assets
	( (		($ 5,677) 49 ( 21) 28 ( 162 ) ( 55) ( 217) ( 138) ( 6,004) 50 ( 38) 12

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statement

Re-measurement Amount Plan Asset Return

statement Re-measurement Amount Plan Asset Return
(excluding the amount
included in net
interest)			-	(	928 )	(	928 )
Actuarial Loss -
Financial
Assumptions	(		252 )		-	(	252 )
Actuarial Gain -
Experience
Adjustments	(		60)		-	(	60)
Recognized in other
comprehensive income
(loss)	(		312)	(	928)	(	1,240)
Employer Contributions			-	(	138)	(	138)
December 31, 2022		$	5,671	($	13,041)	($	7,370)

Our company is exposed to the following risks due to the retirement pension system under the "Labor Standards Act":

1.Investment risk: The Labor Pension Fund Supervisory Committee invests the retirement funds in various domestic and foreign equities, bonds, and bank deposits through self-management and entrusted management methods. However, the return on our plan assets is calculated based on not less than the local bank's 2-year fixed deposit interest rate, regardless of the actual investment return.

2.Interest rate risk: A decrease in government bond interest rates will increase the present value of the defined benefit obligation. However, the investment return on plan assets will also increase accordingly, partially offsetting the impact on the net defined benefit liability.

3.Salary risk: The calculation of the present value of the defined benefit obligation is based on the future salaries of plan members. Therefore, an increase in plan members' salaries will increase the present value of the defined benefit obligation.

The present value of our defined benefit obligation is calculated by qualified actuaries, taking into account the following significant assumptions:

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Discount Rate Expected Salary Increase Rate	December 31, 2022 1.250% 2.000%	December 31, 2021
		0.625% 2.000%

If a significant actuarial assumption were to be changed while all other assumptions remained constant, the increase (decrease) in the present value of the defined benefit obligation would be as follows:

e defined benefit obligation would	be as follows:
Discount Rate Increase of 0.25% Decrease of 0.25% Expected Salary Increase Rate Increase of 0.25% Decrease of 0.25%	December 31, 2022 ($ 97) $ 99 $ 97 ($ 95)	December 31, 2021
	( (	( (	$ 109) $ 112 $ 108 $ 106)

Due to the potential correlation of actuarial assumptions, the sensitivity analysis above may not reflect the actual changes in the present value of the benefit obligation with only one assumption change.

Expected contribution amount within one year Weighted average remaining contractual term of the defined benefit obligation	December 31, 2022 $ 141 6.9 Years	December 31, 2021	December 31, 2021
			$ 141 7.4 Years

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17. Equity

Capital of Common Share

al of Common Share
Number of authorized shares (in thousands) Authorized capital stock Number of issued and fully paid shares (in thousands) Issued capital stock pital surplus Can be used to offset losses, distribute cash dividends, or allocate to capital stock (Note 1) Stock issuance premium for employee stock options that have lapsed (Note 2) Issuance premium from the exercise of employee stock options (Note 3) Not available for any purposes Employee stock options	December 31, 2022 160,000 $ 1,600,000 70,684 $ 706,840 December 31, 2022 $ 315 562 4,029 $ 4,906	December 31, 2021
		160,000 $ 1,600,000 70,491 $ 704,909 December 31, 2021
			$ 272 - 4,405 $ 4,677

(2) Capital surplus

Note 1: This type of capital surplus can be used to offset losses, and can also

be used to distribute cash dividends or allocate to capital when the company has no losses, but the allocation of capital is limited to a certain percentage of the paid-in capital each year.

• Note 2:This type of capital surplus is generated from the issuance of employee stock options, and the adjustment when they subsequently become invalid.

Note 3:This type of capital surplus is generated when employees exercise their stock options.

(3)Retained earnings and dividend policy

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According to the profit distribution policy specified in the company's articles of incorporation, if there are profits in the annual settlement, taxes and donations will be paid in accordance with the law, and 10% of the remaining profits will be allocated to the statutory reserve fund after making up for accumulated losses. The rest will be allocated or returned to the special surplus reserve fund in accordance with legal regulations. If there is still a balance, it will be combined with the accumulated undistributed earnings, and the board of directors will propose a profit distribution proposal and submit it to the shareholders' meeting for resolution and distribution of dividends to shareholders. For the employee and director remuneration policy specified in the company's articles of incorporation, please refer to Note 19(6) regarding employee and director remuneration.

The company will consider the environment and growth stage in which it operates, in order to meet future capital needs and long-term financial planning, and to satisfy shareholders' demands for cash flow. It may distribute more than 50% of its profits as dividends to shareholders, of which cash dividends must not be less than 30% of the total dividend amount. However, the type and ratio of dividend distribution may be adjusted based on the actual profit and financial situation of the current year, as resolved by the shareholders' meeting.

The statutory surplus reserve shall be set aside until its balance reaches the total amount of the company's issued and paid-up capital. It may be used to offset losses when necessary. When the company has no losses, any surplus reserve in excess of 25% of the issued and paid-up capital may be used for capital increase or distributed in cash.

In accordance with the Financial Supervisory Commission's letter No. 1010012865 and the "Q&A on the Application of Special Surplus Reserve after Adopting International Financial Reporting Standards (IFRSs)", the company sets aside and reverses the special surplus reserve.

At the shareholders' meetings held on June 29, 2022 and August 27, 2021, the company passed resolutions to allocate the losses of the 2021 and 2020 fiscal years as follows:

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Beginning of the year deficit to be offset Less: Reduction of capital to offset the deficit this year Plus: After-tax deficit this year Plus: Other comprehensive income after tax for this year Addition: Adjustment of retained earnings for changes in ownership equity of subsidiaries End of the year deficit to be offset	Year 2021 ( $ 280,787 ) 280,787 ( 26,427 ) 217 ( 178) ($ 26,388)	Year 2020
		( $ 193,736 ) - ( 87,340 ) 289 - ($ 280,787)

In order to improve the equity structure of the company, a resolution to reduce capital and offset losses was passed at the shareholder's meeting on August 27, 2021. The actual paid-in capital before the reduction was NTD 985,696 thousand, divided into 98,570 thousand shares with a par value of NTD 10 per share. The reduction amount was NTD 280,787 thousand, and a total of 28,079 thousand issued shares were cancelled, resulting in a reduction ratio of 28.486%. After the reduction, the actual paid-in capital was NTD 704,909 thousand, with a total of 70,491 thousand shares. This reduction to offset losses was approved by the competent authority on October 12, 2021, and the reduction reference date was set to November 15, 2021 according to the board of directors' decision.

In order to activate assets and reduce liabilities to improve the financial structure, a resolution to dispose of the company's land and buildings was passed at the shareholder's meeting on August 27, 2021. The company intends to dispose of the land and building located at No. 69, Keji 1st Road, Guishan District, Taoyuan City at an appropriate price, based on the company's operational status. The subsequent procedures for handling the acquisition or disposal of assets will be carried out in accordance with the company's "Asset Acquisition or Disposal Procedure" and relevant laws and regulations.

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In response to the government's policy of promoting investment in Taiwan and the company's operational development needs, a resolution to purchase land was passed at the board of directors' meeting on May 10, 2021. The company intends to participate in the bidding for land at the Ma Chou Industrial Park in Chiayi County. The subsequent procedures for handling the acquisition or disposal of assets will be carried out in accordance with the company's "Asset Acquisition or Disposal Procedure" and relevant laws and regulations. The company paid a bidding deposit of NTD 5,643 thousand to the Chiayi County Government for the Ma Chou Industrial Park land bidding on October 20, 2021. On January 21, 2022, the board of directors approved the construction of a plant in Chiayi to produce power-related products, targeting niche markets such as e-sports and wireless charging. The company paid the first and second installments of the land price, NTD 42,002 thousand and NTD 168,015 thousand respectively, on March 16, 2022 and June 22, 2022. The payment was completed in June 2022, and the land transfer procedures and related professional service fees of NTD 213 thousand were completed in July 2022, for a total of NTD 210,230 thousand to be reclassified as real estate, plants, and equipment.

According to the information provided, the company proposed a resolution to reduce capital and offset losses in a board meeting held on March 28, 2023. The proposed reduction of capital to offset losses is NT$5,632 thousand, and it is also proposed to carry out a cash reduction of NT$101,208 thousand after offsetting the losses. It is expected that 10,121 thousand issued shares will be cancelled, and the reduction rate will be 14.32%. After the reduction, the expected paid-in capital will be NT$600,000 thousand, and there will be a total of 60,000 thousand shares.

The resolutions on offsetting losses and cash reduction for the 2022 fiscal year are still pending and are expected to be decided at the shareholders' meeting scheduled to be held on June 20, 2023.

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18.Income

18.Income
Sales revenue office power supply unlimited charging uninterruptible power supply Total Sales return Sales Allowance Net Sales Revenue 19. Net loss of Continuing Operation Unit (1) Interest revenue Bank deposit (2) Other revenue Rental income (Note 10 and 25) Conversion of contract liabilities to other income Others (3) Finance costs Interest of bank loans (4) Depreciation and Amortization Property, plant, and equipment Intangible Assets Depreciation expenses aggregated by function Operating expenses Amortization expense aggregated by function	Year 2022 $ 364,379 42,962 - 407,341 ( 4 ) ( 42) $ 407,295 Year 2022 $ 1,885 Year 2022 $ 12,355 858 10,007 $ 23,220 Year 2022 $ 9,871 Year 2022 $ 11,895 712 $ 12,607 $ 11,895	Year 2021 $ 341,231 4,126 3,608 348,965 ( 10 ) ( 626) $ 348,329 Year 2021	Year 2021
			$ 336 Year 2021
			$ 8,729 1,174 433 $ 10,336 Year 2021
			$ 7,686 Year 2021
			$ 12,713 904 $ 13,617 $ 12,713

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Operating expenses $ 712 $ 904

(5) Employee benefits

loyee benefits
Post-Employment Benefits (Note 17) Defined benefit plan - expenses Plan of present value of defined benefit obligation - expense Salary expense Health and labor insurance expense Other employee expenses Total Employee benefits expense Functional Consolidation: Operating expenses		Year 2022 $ 459 12 471 13,534 1,019 831 $ 15,855 $ 15,855		Year 2021
				$ 924 28 952 21,049 1,941 1,010 $ 24,952 $ 24,952

(6) Employee compensation and director compensation

The Company is required by its Articles of Incorporation to allocate employee and director compensation at a rate not less than 5% and not more than 4% of the pre-tax profit for the year after deducting dividends. However, if the Company still has accumulated losses, it shall reserve an amount for compensation in advance to offset such losses before allocating profits to employees and directors according to the aforementioned ratio.

After the individual financial reports for the year are approved and released, if there are any changes to the amounts, they will be handled according to accounting estimates and adjusted in the next fiscal year.

Because the company still had deficits to be compensated and operating losses in 2022 and 2021, the board of directors did not resolve to allocate employee compensation and director remuneration, and there was no difference between this and the non-provision of employee compensation and director remuneration in the individual financial statements for those years.

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For information on employee compensation and director remuneration approved by the board of directors in 2022 and 2021, please refer to the Taiwan Stock Exchange's "Public Information Observation System."

• (7) Foreign exchange gains and losses - net

Total amount of foreign exchange gains Foreign exchange loss Net income (loss)		Year 2022 $ 36,129 18,771) $ 17,358		Year 2021
	(		( (	$ 13,071 18,421) $ 5,350)

20. Income tax of Continuing Operation Unit

• (1) Income tax recognized in income statement

The main components of income tax expense are as follows:

Current income tax Adjustments for prior years Deferred income tax. Generated in the current year Income tax expense recognized in profit or loss Adjustments to accounting follows: Profit (loss) before tax tax expense (income) calculated at the statutory tax rate (20%) based on pre-tax net loss (income) （20%） Expenses not deductible for tax purposes Unrecognized temporary differences Loss carryforward (utilization) Adjustments for prior years Income tax expense

Year 2022 Year 2021 ( $ 11 ) $ - 3,133 879 $ 3,122 $ 879 income and income tax expense are as Year 2022 Year 2021 $ 22,638 ($ 25,548) $ 4,528 ( $ 5,110 ) 1,219 ( 402 ) 4,962 64 ( 7,576 ) 6,327 ( 11) - $ 3,122 $ 879

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recognized in profit or loss

• (2) Recognition of Income Tax in Other Comprehensive Income

Year 2022 Year 2021 Deferred income tax. Generated in the current year - Foreign Operations Translation $ 2,680 ( $ 2,095 )

• (3) Current tax assets

December 31, December 31, 2022 2021 Current tax assets Income tax refund receivable $ 159 $ 229

(4) Deferred Income Tax Assets and Liabilities

Changes in Deferred Income Tax Assets and Liabilities are as follows: Year 2022

Year 2022
Deferred tax assets Inventory allowance for obsolete or slow-moving items Unrealized exchange losses Allowance for doubtful accounts Deferred income tax liabilities Unrealized exchange gain Exchange differences	Beginning balance $ 5 1,746 133 $ 1,884 $ - 985	Recognized in income statement $ 7 - ( 133) ($ 126) $ 3,007 -	Recognized in others Comprehe nsive income $ - - - $ - $ - 2,680		Ending balance
		( (			$ 12 1,746 - $ 1,758 $ 3,007 3,665

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on translation of foreign financial statements $ 985 $ 3,007 $ 2,680 $ 6,672

Year 2021

Year 2021
Deferred tax assets Inventory allowance for obsolete or slow-moving items Unrealized exchange losses Allowance for doubtful accounts Deferred income tax liabilities Exchange differences on translation of foreign financial statements	Beginning balance $ 788 1,790 185 $ 2,763 $ 3,080	Recognized in income statement ( $ 783 ) ( 44 ) ( 52) ($ 879) $ -	Recognized in others Comprehe nsive income $ - - - $ - ($ 2,095)		Ending balance
			(		$ 5 1,746 133 $ 1,884 $ 985

• (5) Unrecognized deferred tax assets for temporary differences and unused tax loss carryforwards in balance sheet

yforwards in balance sheet
Loss deduction Expires in 2022 Expires in 2023 Expires in 2024 Expires in 2025 Expires in 2026 Expires in 2027 Expires in 2028 Expires in 2030 Expires in 2031	December 31, 2022 $ - - 16,085 19,273 70,468 85,192 12,428 43,920 31,635 $ 279,001	December 31, 2021
			$ 31,654 4,356 17,955 19,273 70,468 85,192 12,428 43,920 31,635 $ 316,881

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Deductible temporary differences $ 353,457 $ 328,646

(6) The income tax settlements and declarations

Our company's corporate income tax settlement and declaration for the period ending 2020 have been reviewed and confirmed by the tax authority.

1. Earnings per share (loss)

ings per share (loss)
Basic earnings (loss) per share Diluted earnings (loss) per share		Unit: per share in USD Year 2022 Year 2021 $ 0.28 ($ 0.37) $ 0.27 ($ 0.37)

The net income (loss) and weighted average number of ordinary shares used in computing earnings (loss) per share are as follows:

Net income (loss) for the year

Net income (loss) for the year
Used to calculate the net profit (loss) per share for basic and diluted earnings per share. Number of shares (in thousands) The weighted average number of ordinary shares outstanding used in calculating basic and diluted earnings (loss) per share Effects of dilutive potential common shares: Employee stock options Used to calculate the weighted average number of common shares for diluted earnings per share		Year 2022 $ 19,516 Year 2022 70,618 517 71,135		Year 2021
			(	$ 26,427) Year 2021
				70,491 - 70,491

If the Company chooses to distribute employee compensation in the form of stock or cash, in calculating diluted earnings per share, it is assumed that employee compensation will be in the form of stock and will be included in the weighted

53

average number of outstanding shares when such potential common shares have a dilutive effect, in order to calculate diluted earnings per share. When calculating diluted earnings per share before the decision to distribute employee compensation shares in the following year, the dilutive effect of such potential common shares will continue to be considered.

As the Company's employee stock options had an anti-dilutive effect for the year 2021, they were not included in the calculation of diluted loss per share. 22. Share-based payment agreement

The company's employee stock option plan:

The company's board of directors resolved on March 30, 2017 to issue 8,000 units of employee stock options, with each unit representing the right to purchase 1,000 shares of common stock through the issuance of new shares. The plan has been approved by the Financial Supervisory Commission on October 24, 2017. The plan is open to all full-time employees of the company and its subsidiaries. The stock options have a term of five years, and the option holders can exercise a certain percentage of the options after holding the employee stock option certificates for two years. The exercise price of the stock options is the closing price of the company's common stock on the day of issuance. The exercise price of the stock options will be adjusted according to a specified formula in case of changes in the company's common stock.

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The relevant information on the employee stock options issued by the Company is as follows:

pany is as follows:
Employee stock options Outstanding at beginning of year Exercised During the Period Expired/Forfeited during the year Outstanding at end of year Exercisable at end of year Weighted average fair value of employee stock options granted during the year (NTD)	Year 2022 Unit(1,000) Weighted a v e r a g e Exercise price (NTD) 1,875 $ 10.50 ( 193)10.50 ( 17 ) 10.50 1,665 10.50 1,665 $ -	Year 2021
	Unit(1,000) 1,875 ( 193) ( 17 ) 1,665 1,665 $ -	Unit(1,000) 1,975 - ( 100 ) 1,875 1,406 $ -	Weighted a v e r a g e Exercise price (NTD)
	( (	(	$ 7.51 - 7.51 10.50

As of the balance sheet date, the information related to outstanding employee stock options is as follows:

options is as follows:
Range of exercise price (NTD) Weighted average remaining contractual life (years)	December 31, 2022
	$ 10.50 0.41 Years

The Black-Scholes pricing model was used to value the employee stock options granted by the Company in May 2018. The input values used in the pricing model were as follows:

as follows:
Stock Price of Grant Date Exercise price Expected volatility Exported term Expected interest rates No-risk interest rates	Mayof 2018
	NTD 7.51 NTD 7.51 39.42%～43.15% 3.5 to 4.5 years - 0.66%～0.71%

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The expected volatility is calculated as the annualized standard deviation of historical daily returns over the corresponding period.

The recognized compensation costs for 2022 and 2021 were NT$133,000 and NT$500,000, respectively.

32. Risk Management

The company engages in capital management to ensure that, by optimizing the balance of debt and equity, it can maximize shareholder returns while continuing to operate.

The company's capital structure management strategy is based on the size of the industry in which it operates, the future growth potential of the industry, and the product development blueprint to determine an appropriate market share for the company. This information is then used to plan the necessary production capacity, the factory equipment required to achieve that capacity, and the corresponding capital expenditure. Based on industry characteristics, the required operating capital and cash are calculated to plan the overall asset scale needed for the company's long-term development. Finally, the company estimates the potential product margin contribution, operating profit margin, and cash flow based on its product competitiveness and takes into account risk factors such as industry cycle fluctuations and product life cycles to determine an appropriate capital structure.

The company's management regularly reviews its capital structure and considers the costs and risks associated with different capital structures. In general, the company employs a prudent risk management strategy.

1. Financial Instruments

(1)Fair value information - Financial instruments not measured at fair value

The Company's management believes that the carrying amounts of financial assets and financial liabilities not measured at fair value in the individual financial statements approximate their fair values.

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(2) Types of financial instruments

es of financial instruments
Financial Assets Financial assets measured at amortized cost -Financial Liability Amortized cost measurement (Note 2)	December 31, 2022 $ 344,784 764,067	December 31, 2021
		$ 267,085 571,580

Note 1: The balance includes financial assets measured at amortized cost, such as cash and cash equivalents, accounts receivable (including related parties), other receivables (including related parties), and deposits paid.

Note 2: The balance includes financial liabilities measured at amortized cost, such as long-term and short-term borrowings (including those due within one year), accounts payable (including related parties), other payables (including related parties), and deposits received.

(3) Objectives and policy of financial risk management

The Company's main financial instruments include accounts receivable (including related parties), accounts payable (including related parties), other payables (including related parties), and borrowings. The Company's financial management department provides services to various business units, coordinating and managing the Company's financial risks related to its operations by analyzing internal risk reports on the basis of risk level and breadth. These risks include market risk (including exchange rate and interest rate risk), credit risk, and liquidity risk.

1. Market risk

The Company's main financial risk arising from its operating activities is the risk of fluctuations in foreign exchange rates (see (1) below) and interest rates (see (2) below).

The Company's exposure to market risk, as well as its methods of managing and measuring this risk, have not changed.

(1) Exchange rate risk

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The Company engages in sales and purchases denominated in foreign currencies, exposing the Company to fluctuations in exchange rates.

The amounts of monetary assets and liabilities denominated in non-functional currencies on the balance sheet date are disclosed in Note 29. Sensitivity analysis

The Company is primarily exposed to fluctuations in the US dollar exchange rate.

The following table provides a sensitivity analysis of the Company's exposure to foreign exchange rate risk when the functional currency, the New Taiwan Dollar, appreciates or depreciates by 5% against the relevant currencies. The 5% sensitivity ratio is used by the Company's senior management when reporting on exchange rate risk and represents their assessment of the reasonable possible range of exchange rate fluctuations. The sensitivity analysis includes only foreign currency monetary items in circulation and adjusts their year-end conversions by 5% in response to changes in exchange rates. The positive numbers in the table indicate that when the relevant currencies appreciate by 5% relative to the New Taiwan Dollar, it will increase/decrease the profit/loss before tax by the amount indicated. When the relevant foreign currencies depreciate by 5% relative to the New Taiwan Dollar, their impact on profit/loss before tax will be the same amount but with a negative sign.

Impact of US Dollar(Note 1)	Year 2022 $ 9,160	Year 2021
		$ 8,416

Note 1: The major sources are the USD-denominated cash and cash equivalents, accounts receivable (including related parties), accounts payable (including related parties), and other payables (including related parties) that are outstanding and not hedged against cash flow risk as of the balance sheet date.

(2) Interest Rate Risk

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The company is exposed to interest rate risk as its entities borrow funds at both fixed and floating rates. The company manages this risk by maintaining an appropriate mix of fixed and floating rate borrowing. The amounts of financial assets and financial liabilities subject to interest rate risk as of the balance sheet date are as follows:

Fair value measurement with interest rate risk: - Financial assets - Financial Liability Fair value with cash flow rate risk - financial assets - Financial assets - Financial Liability	December 31, 2022 $ 96,220 - 79,067 610,067	December 31, 2021
		$ 85,816 84,000 87,087 386,067

Sensitivity analysis

The following sensitivity analysis is based on derivative and non-derivative instruments and is determined by the interest rate volatility on the balance sheet date. For floating rate assets/liabilities, the analysis assumes that the amounts of assets/liabilities outstanding on the balance sheet date are outstanding throughout the reporting period. The variable rate used by the Company to report to senior management is a change in the interest rate of 50 basis points, which represents the reasonable range of interest rate changes evaluated by management.

If the interest rate increases/decreases by 50 basis points, with all other variables remaining constant, the Company's pre-tax profit/loss for 2022 and 2023 will decrease/increase by NT$2,655 thousand and NT$1,495 thousand respectively, mainly due to the volatility of the Company's variable rate 。 borrowings.

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2. Credit risk

Credit risk refers to the risk of financial losses that the Company may suffer as a result of the counterparty failing to fulfill contractual obligations. As of the balance sheet date, the maximum credit risk exposure that the Company may suffer as a result of the counterparty failing to fulfill its obligations is mainly derived from the book value of financial assets recognized on the individual balance sheets.

The Company's policy is to transact with reputable counterparties and to obtain sufficient collateral where necessary to mitigate the risk of financial loss due to default. The Company rates its major customers based on publicly available and non-public financial information and transaction records. The Company continuously monitors credit risk and counterparty credit ratings and diversifies total transaction amounts among customers with qualified credit ratings. The credit risk is controlled by the credit limit approved and reviewed annually by the Risk Management Committee for each counterparty.

The Company's credit risk is mainly concentrated in specific customers, with 95% of the total accounts receivable as of December 31, 2022 and 2023 coming from these customers.

3. Liquidity risk

The Company manages and maintains sufficient positions of cash and cash equivalents to support its operations and mitigate the impact of cash flow volatility. The management supervises the utilization of bank loan facilities and ensures compliance with the terms and conditions of borrowing contracts.

Bank loans are an important source of liquidity for the Company. Please refer to the description of unused credit facilities under item (2) for details as of December 31, 2022, and 2021.

(1)Analysis of liquidity and interest rate risks for non-derivative financial liabilities

The analysis of the remaining contractual maturities of non-derivative financial liabilities is based on the earliest possible date that the Company

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could be required to repay, using undiscounted cash flows of the financial liabilities, including principal and estimated interest. Therefore, bank borrowings that could be required to be repaid immediately are presented within the earliest period in the table below, without considering the probability that the bank could exercise that right. Other non-derivative financial liabilities are analyzed according to the repayment dates specified in the agreements.

The undiscounted interest cash flows paid at floating rates are derived based on the yield curve of the balance sheet date.

December 31, 2022

December 31, 2022	1, 2022
Weighted average effective interest rate(%) Non-derivative financial liabilities: Short-term borrowings. 2.105 Long-term borrowings 1.985 December 31, 2021 Weighted average effective interest rate(%) Non-derivative financial liabilities: Short-term borrowings. 1.499 Long-term borrowings 1.299	Weighted average effective interest rate(%)	Maturity within: 1 month or less		1-3 months		3 months to 1year		1 - 5years		More than 5years
		$ 84,418 3,197 $ 87,615 Maturity within: 1 month or less		$ 70,265 5,538 $ 75,803 1-3 months		$ 30,328 251,964 $ 282,292 3 months to 1year		$ - 171,913 $ 171,913 1 - 5years		$ - - $ - More than 5years
Non-derivative financial liabilities: Short-term borrowings. Long-term borrowings
	1.499 1.299		$ 397 2,506 $ 2,903		$ 184,315 4,741 $ 189,056		$ 249 21,334 $ 21,583		$ - 261,064 $ 261,064		$ - - $ -

(2) Credit limit

imit
Unsecured bank loans Amounts Used Amounts Unused Secured Bank Borrowing Limit Amounts Used	December 31, 2022 $ 165,667 114,333 $ 280,000 $ 444,400	December 31, 2021
			$ 169,667 110,333 $ 280,000 $ 300,400

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Amounts Unused 54,300 30,300 $ 498,700 $ 300,700

25. Related Party Transactions

Apart from the transactions disclosed in other notes, the Company's transactions with related parties are as follows.

• (1) Related Party Names and Relationships

Relationships with the Names of related arties Com an p p y Bestec Power Electronics (Dongguan) Co., Subsidiary Ltd.(Dongguan Bestec) APX Power Technology, LLC （ APX ） Subsidiary Bestec Electronics (Dongguan) Co., Subsidiary Ltd.(Dongguan Wanlin) Forfune International Co., Ltd. (Forfune) Corporate shareholder of

Corporate shareholder of the Company

• (2) Revenue from operations

Category of related Accounting item p a r t y Year 2022 Year 2021 Sales revenue Subsidiary APX $ - $ 3,572

The unrealized sales profit generated by downstream transactions of the subsidiary has been eliminated by the Company.

(3) Purchase of goods

Category of related party Year 2022 Year 2021 Subsidiary Dongguan Bestec $ 240,981 $ 317,927 Subsidiary Dongguan Wanlin $ 128,310 $ -

• (4)Accounts receivable from related parties (excluding related party loans and lease-related receivables)

Category of related December 31, December 31, Accounting item p a r t y 2022 2021 Accounts Subsidiary receivable

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$ - $ 538

APX

The trade receivables from related parties outstanding are not secured by collateral. Allowance for doubtful accounts was not made for the related party trade receivables in 2022 and 2021.

• (5) Other accounts receivable

Category of related December 31, December 31, Accounting item p a r t y 2022 2021 Other accounts Subsidiary receivable APX $ 597 $ -

• (6)Accounts payable to related parties (excluding borrowings from related parties)

Category of related December 31, December 31, Accounting item party 2022 2021 Accounts payable Subsidiary Dongguan Bestec $ 25,316 $ 79,034 Subsidiary - Dongguan Wanlin $ 114,740 $ Other accounts Subsidiary payable - Dongguan Bestec $ $ 8,724

The trade terms of payment between the Company, its subsidiaries, and its associates are executed based on the Group's cash management status. The current outstanding payable to related parties is not guaranteed.

Other outstanding payable to related parties represents money collected on behalf of others.

(7)Business Lease

The Company leases office space to its corporate shareholder through operating lease agreements. The lease period is 2 years, and the monthly rent is NTD 5,000. Rental income recognized in 2022 was NTD 57,000 (2021: Nil).

(8)Information on the remuneration of key management personnel.

Short-term employee benefits Share-based payment Post-Employment Benefits		Year 2022 $ 8,482 114 77		Year 2021
				$ 8,726 1,390 90

63

$ 8,673 $ 10,206

Directors and other key management personnel's remuneration is determined by the remuneration committee based on individual performance and market trends.

26. Asset pledged as collateral

Assets pledged as collateral for financing loans include the following:

Buildings and structures - net amount Land	December 31, 2022 $ 124,143 339,674 $ 463,817	December 31, 2021	December 31, 2021
			$ 135,389 121,223 $ 256,612

As of December 31, 2022 and 2021, the book values of the Company's own land and buildings used as collateral for the Company's borrowings were NT$463,817 thousand and NT$256,612 thousand, respectively. These own land and buildings have been pledged as collateral for bank borrowings and the Company may not use these collateral assets for other borrowings or sell them to other companies.

1. Significant or contingent liabilities and unrecognized contractual commitments

For the significant commitments and contingent liabilities of the Company as of the balance sheet date, please refer to Note 9(2) for details.

28. Significant post-deadline matters

In July 2022, the subsidiary of the Company, Dongguan Bestec, sold its equity in Dongguan Wanlin to an external non-related party. For further details, please refer to Note 9(8).

64

29. Significant foreign currency assets and liabilities information

The following information is expressed in currencies other than the functional currency of the Company, and the exchange rates disclosed represent the rates of such currencies converted into the functional currency. Significant foreign currency assets and liabilities information are as follows.

December 31, 2022

Financial Assets Monetary items US Dollar Hong Kong Dollar RMB Non-monetary items Acquisition of investments accounted for using the equity method US Dollar - Financial Liability Monetary items US Dollar	Foreign currency $ 10,536 92 212 5,000 4,570	Exchange rate NTD equivalent to USD 30.710 NTD equivalent to HKD 3.938 4.408（Renminbi: NT dollars） NTD equivalent to USD 30.710 NTD equivalent to USD 30.710		Carrying amount
				$ 323,561 362 933 $ 324,856 $ 153,564 $ 140,358

65

December 31, 2021

Financial Assets Monetary items US Dollar Hong Kong Dollar RMB Non-monetary items Acquisition of investments accounted for using the equity method US Dollar Hong Kong Dollar - Financial Liability Monetary items US Dollar	Foreign currency $ 9,258 95 213 5,407 15,201 3,177	Exchange rate NTD equivalent to USD 27.68 NTD equivalent to HKD 3.549 4.344（Renminbi: NT dollars） NTD equivalent to USD 27.68 NTD equivalent to HKD 3.549 NTD equivalent to USD 27.68		Carrying amount
				$ 256,259 338 924 $ 257,521 $ 149,675 53,592 $ 203,267 $ 87,931

1. Disclosure in Notes

2. (1) Significant transaction and (2) investment information:

3. Loans to others ： None

4. Endorsements or guarantees for others: None.

5. 3.Status of holding securities at the end of the period (excluding investments in subsidiaries, affiliated companies, and joint ventures): see Table 1.

6. 4.Cumulative purchase or sale amount of the same securities reaches NT$300 thousand or 20% of the paid-in capital: None.

66

• 5.Acquisition of real estate reaches NT$300 thousand or 20% of the paid-in capital: see Table 2.

• 6.Disposal of real estate reaches NT$300 thousand or 20% of the paid-in capital: None.

• 7.Transactions of goods or services with related parties reached NT$100 thousand or 20% of the paid-in capital: see Table 3.

• 8.Receivables from related parties reached NT$100 thousand or 20% of the paid-in capital: None.

• Engaging in derivative trading: none

• Information of Investee Companies: table 4

• (2) Information of China Investment:

• 1.The name of the mainland China investee company, its main business activities, paid-in capital, investment method, inbound and outbound fund transfer, shareholding percentage, investment gain or loss, year-end investment book value, repatriated investment gain or loss, and investment quota for the mainland China area: see Table 5.

• 2.Significant transactions occurred directly or indirectly through a third region with the mainland China investee company, including their prices, payment conditions, and unrealized gain or loss, such as:

• (a)Purchase amount and year-end balance and percentage of related accounts payable: see Table 6.

• (b)Sales amount and year-end balance and percentage of related accounts receivable: see Table 6.

• (c)Property transaction amount and resulting gain or loss: none.

• (d)Endorsement or provision of collateral for promissory notes and year-end balance and purpose: none.

• (e)Maximum and year-end balance of capital borrowing, interest rate range, and total interest for the year: none.

• (f)Other transactions that have a significant impact on the year's income or financial condition, such as the provision or receipt of services: none.

67

(4)Information on major shareholders: names, shareholdings, and percentages of shareholders holding 5% or more of the total outstanding shares: see Table 7.

68

Bestec Power Electronics Co., Ltd.

Details of held-to-maturity securities at the end of the year:

As of December 31, 2022

Appendix 1

Unit: In thousands of New Taiwan dollars unless otherwise stated The companies listed are those held by the reporting company.

Held Companies	Type and Name of Marketable Securities	Relationship with the issuer of securities	Account		Ending	Ending		Remarks
				Number of shares / units	Carrying amount	Percentage of ownership (%)	Fair value
Lianyao Investment Co., Ltd. Wan Jhih Electronic Limited	Domestic listed and emerging market stocks China Steel Corporation Sheng Yu Co., Ltd. Taiwan Semiconductor Manufacturing Co., Ltd. Beneficiary certificates SHS-MB-CREDIT SUISSE NOVA (LUX) SICAV-GLOBAL SENIOR LOAN FUND CAPITALISATION UNITS-F-AXA IM FIXED INCOME INVESTMENT STRATEGIES FCP-US SHORT DURATION HIGH YIELD CAPITALISATION CONTINGENT CONVERTIBLE NOTES BARCLAYS PLC 2018-WITHOUT FIXED MATURITY GLOBAL FIXED / FLOATING RATE Rating: S&P B+ NOTES DEUTSCHE BANK AG 2014-WITHOUT FIXED MATURITY SUBORD FLTG RT Rating: S&P B+ 6.35% MEDIUM TERM NOTES PETROLEOS MEXICANOS PEMEX 2018-12.02.48 GTD GLOBAL SERIES C	None None None None None None None None	Financial assets at fair value through profit or loss - Current Financial assets at fair value through profit or loss - Current Financial assets at fair value through profit or loss - Current Financial assets at fair value through profit or loss - Current Financial assets at fair value through profit or loss - Current Financial assets at fair value through profit or loss - Current Financial assets at fair value through profit or loss - Current Financial assets at fair value through profit or loss - Current	20,000 30,000 22,000 269.157 2,101.282 500,000.000 600,000.000 500,000.000	$ 596 735 9,867 11,946 10,419 14,626 18,062 9,778	- - - - - - - -	$ 596 735 9,867 11,946 10,419 14,626 18,062 9,778	－ － － － － － － －

69

Bestec Power Electronics Co., Ltd. And Subsidiaries

The amount of acquisition of real estate reaches NT$300 thousand or 20% of the paid-in capital.

January 1 to December 31, 2022

Table 2

Unit: In thousands of New Taiwan dollars unless otherwise stated The companies listed are those held by the reporting company.

Company acquiring the property	Property name	Occurrence of the fact	Transaction amount	Payment status of the transaction	Counterparty	Relation	If the counterparty is a related party, information on theprevious transferprice	If the counterparty is a related party, information on theprevious transferprice	If the counterparty is a related party, information on theprevious transferprice	If the counterparty is a related party, information on theprevious transferprice	Determinat ion basis of the price	Purpose of acquisition and usage	Other agreements details
							Owner’s	relationship with the issuer	Transfer date	Amount
The Company	Land	2022.07.22 (Note 3)	$ 210,017 (Note 4)	Payment was made according to the progress payment in the real estate purchase contract (already fully paid).	Chiayi County Government	None	-	-	-	$ -	Governme nt tender for production and operation use	Used for production and manufacturing	None

Note 1: Assets that require appraisal according to regulations should have the appraisal results indicated in the "Reference Basis for Price Determination" column.

Note 2: The actual paid-in capital refers to the paid-in capital of the parent company. For issuers whose stocks have no par value or per share value is not NT$10, the transaction amount requirement of 20% of actual paid-in capital shall be calculated based on 10% of the equity attributable to the parent company owner on the balance sheet.

Note 3 ： The date of occurrence refers to the earlier date among the transaction signing date, payment date, commission transaction date, transfer date, board resolution date, or other date that sufficiently determines the transaction object and transaction amount.

Note 4 ： The transaction amount, including professional service fees, is NT$21,023,000.

70

Bestec Power Electronics Co., Ltd.

When the amount of purchasing or selling with related parties reaches NT$100 thousand or more, or 20% of the paid-in capital, the following disclosure is required.

January 1 to December 31, 2022

Table 3

Unit: NT$ thousands

The company that purchased (sold) goods	Counterparty	Relation		Transaction condition	Transaction condition		Different conditions compared to a normal transaction and the reason for that	Different conditions compared to a normal transaction and the reason for that	Accounts and notes receivable (payable)	Accounts and notes receivable (payable)	Remark s
			Goods purchase d (sold)	Amount	Percentage of the total purchases (sales) Ratio	Credit period	Unit price ($)	Credit period	Balance	Percentage of the total notes receivable (payable), accounts receivable (payable) purchases (sales)
Bestec Power Electronics Co., Ltd. Bestec Power Electronics (Dongguan) Co., Ltd. Bestec Power Electronics Co., Ltd. Bestec Electronics (Dongguan)Co.,Ltd.	Bestec Power Electronics (Dongguan) Co., Ltd. Bestec Power Electronics Co., Ltd. Bestec Electronics (Dongguan) Co., Ltd. Bestec Power Electronics Co.,Ltd.	Subsidiary The Company Subsidiary The Company	Purchase Sale Purchase Sale	$ 240,981 ( 240,981 ) 128,310 ( 128,310 )	65% ( 100% ) 35% ( 62% )	Note 1 Note 2 Note 1 Note 2	$ - - - -	－ － － －	( $ 25,316 ) 25,316 ( 114,740 ) 114,740	( 18% ) 100% ( 81% ) 100%	－ － － －

Note 1: The payment terms for purchases from related parties are based on the cash management needs within the group, and are mostly executed based on the company's financial situation. Other transaction terms are not significantly different from those with non-related parties.

Note 2: The collection terms for sales to related parties are based on the cash management needs within the group, and are mostly executed based on the company's financial situation. Other transaction terms are not significantly different from those with non-related parties.

71

Bestec Power Electronics Co., Ltd.

Information of name and location of Investee etc.

January 1 to December 31, 2022

Table 4

Unit: In thousands of New Taiwan dollars unless otherwise stated The companies listed are those held by the reporting company.

Investment Company name	Name of Investee	Location	Primary business items	Original Investment Amount	Original Investment Amount	End-of-Period Holdings	End-of-Period Holdings	End-of-Period Holdings	Investee Current Period (Loss) Income (Note 2 and 4)	Investment Gains or Losses Current Period Recognized Investment (Loss) Income (Note 2 and 4)	Remarks
				Ending of this reporting period	Ending of last reporting period	Number of shares	Percentage (%)	Carrying amount
Bestec Power Electronics Co., Ltd. Bestec Inv, Inc.	Wan Jhih Electronic Limited Ninety-Nine Electronic Limited Baotai Construction Co., Ltd. Chien Chih Electronic Co., Ltd. Lianyao Investment Co., Ltd. Bestec Power International Ltd. Bestec Biotechnology Co., LTD. Bestec Inv, Inc. APX Power Technology, LLC	60 Market Square, P.O. Box 364,Belize City, Belize Suite 802,St James Corurt St Denis Street, Port Louis, Maurtius 3F, No.25, Lane 20, Sec. 4, Sanhe Rd., Sanchong Dist., New Taipei City, Taiwan Suite 802, St James Court St Denis Street, Port Louis, Manritius No. 69, 6 F, Keji 1st Road, Guishan District, Taoyuan City Level3, Alexander House, 35 Cybercity Ebene, Mauritius No. 69, 2 F, Keji 1st Road, Guishan District, Taoyuan City 2035 Sunset Lake Road Suite B-2, Newark, DE 19702 10 N. Martingale Rd, Suite 400, Schaumburg ,IL,60173, USA.	Trading of various technological products Investment related business Real estate sales Manufacturing and trading of electronic parts such as casings and cables. Investment related business Trading of various technological products Pet food-related business Investment related business Sale of uninterrupted power supply systems and power protectors	$ 1,536 (USD 50,000) 358,623 (USD 11,666,000) 200,000 - 80,000 61,420 (USD 2,000,000 ) 20,000 56,814 (USD 1,850,000) 55,094 (USD 1,794,000)	$ 1384 (USD 50,000) 322,915 (USD 11,666,000) 200,000 92,811 (USD 3,353,000) 80,000 55,360 (USD2,000,000) 20,000 51,208 (USD 1,850,000) 49,658 (USD1,794,000 )	50,000 1,356,181 20,000,000 - 8,000,000 2,000,000 2,000,000 9,250 -	100 100 100 - 100 100 100 100 95.94	$ 123764 152,616 168,504 - 76,713 112,758 10,645 949 ( 369 ) (USD -12,000 )	$ 696 1,832 (USD 61,000) ( 2,320 ) 309 (HKD 86,000) ( 3,758 ) 5,690 ( 18 ) ( 211 ) (USD -7,000 ) ( 179 ) (USD -6,000 )	$ 696 1,832 ( 2,320 ) 665 ( 3,758 ) 5,690 ( 18 ) ( 211 ) ( 172 ) (USD -6,000)	Note 1 Note 1 Note 1 Note 1, 3 and 5 Note 1 Note 1 Note 1 Note 1 Note 1

Note 1: Except for Note 2, the New Taiwan Dollar amounts in this table are converted based on the exchange rate as of December 31, 2022.

Note 2: The foreign currency amounts are converted into New Taiwan Dollars based on the average exchange rate for the year 2022.

Note 3: The difference between the investee's profit or loss for the current period and the investment gain or loss recognized during the year is due to the realized gain of NTD 356 thousand from the sale of raw materials by Chien Chih Electronic Co., Ltd.. to Bestec Power Electronics (Dongguan) Co., Ltd.

Note 4: The profit or loss is recognized based on the financial statements audited by the investee's auditor during the same period.

Note 5: The board of directors of the Company passed a resolution on November 12, 2021 to dissolve and liquidate Dongguan Shijie Chien Chih Electronics Factory (Dongguan Shijie) ,a factory of Chien Chih Electronic Co., Ltd.. The loss recognized in 2022 of NTD

401,690 thousand (RMB 90,839 thousand) for the outstanding receivables from Dongguan Shijie, was written off against the corresponding payable by the latter. Therefore, it was not included in the consolidated financial statements, and the remaining equity of NTD 1,922 thousand was repatriated on March 7, 2022.

Note 6: For information on the Company's investee in Mainland China, please refer to Schedule 5.

72

Table 5

Bestec Power Electronics Co., Ltd.

Investment in mainland China

January 1 to December 31, 2022

Unit: In thousands of New Taiwan dollars unless otherwise stated The companies listed are those held by the reporting company.

Investee in mainland China Company name	Primary business items	Paid-in capital	Paid-in capital	Investment method	Investment amount at the beginning of the period Investment amount accumulated from Taiwan Accumulated investment amount	Investment amount at the beginning of the period Investment amount accumulated from Taiwan Accumulated investment amount	Investment amount in the current period exported or withdrawn Investment amount	Investment amount in the current period exported or withdrawn Investment amount	Ending of this reporting period Investment amount accumulated from Taiwan Investment amount	Investee Income or Loss for the Period	Direct or indirect shareholdin g ratio of the company's investment	Current period recognized amount investment income or loss	Period end investment book value	As of the end of the period, Inflows from investment returns
							Remitted out	Recovered
Bestec Power Electronics (Dongguan) Co., Ltd. Dongguan Shijie Chien Chih Electronics Factory Dongguan Wanlin Electronics Co	Production and sales of power supplies, power converters, and circuit board components Manufacture of electronic components such as casings and wires Manufacturing and production of power supply and power converter, etc.	$ 306195 (HKD 13,082,000 and USD 8,293,000) (Note 2) - 17,632 (Chinese Yuan 4,000,000) (Note 2)		Indirect investment through Jiuh Der Electronics (Mauritius) Co., Ltd. Establishment of a processing plant for incoming materials through Chien Chih Electronic Co., Ltd. Indirect investment through Bestec Power Electronics (Dongguan) Co., Ltd.	$ 306195 (HKD 13,082,000 and USD 8,293,000) (Note 2) 102,971 $3,353,000 (USD) (Note 2) -		$ - - -	$ - 59,025 (USD 1,922,000) -	$ 306,195 (HKD 13,082,000 and USD 8,293,000) (Note 2) 43,946 (USD 1,431,000) (Note 2) -	$ 3959 (CNY 895,000) (Note 4) ( 401,690 ) (Chinese Yuan -90,839,000) (Note 4) 37,454 (Chinese Yuan 8,470,000) (Note 4)	100% 100% 100%	$ 3959 (CNY 895,000) (Note 4) ( 401,690 ) (Chinese Yuan -90,839,000) (Note 4) 37,454 (Chinese Yuan 8,470,000) (Note 4)	$ 154250 (USD 5,023,000) (Note 2) - (Note 6) 43,996 (Chinese Yuan 9,981,000) (Note 7)	$ - - -
Cumulative amount of investment in Mainland China exported from Taiwan duringtheperiod-end(Note 2)			Approved investment amount			by Investment Commission, Ministry of Economic Affairs(Note 2)
$ 350,141 (US$9,724,000 and HK$13,082)			$ 512,912 (US$15,024,000 and HK$13,084,000)			$ 419,047

Note 1: The calculation is based on 60% of the net worth of the audited financial statements as of December 31, 2022 (the net worth of the company as of December 31, 2022 was NT$698,412 thousand).

Note 2: The amounts in this table are converted into New Taiwan dollars based on the exchange rate as of December 31, 2022. Note 3 ： The investment cases of Dongguan Lian De were approved and on file with approval letters numbered 091048706, 092017118, 092022439, 093015037, 094014017, 09500187450, and 10300000550, issued on March 18, 2003, May 26, 2003, July 21, 2003, June 4, 2004, June 1, 2005, July 12, 2006, and January 23, 2014, respectively. The investment case of Dongguan Shi Jie Jian Zhi Electronics Factory was approved and on file with an approval letter numbered 09700365750 issued on October 13, 2008.

Note 4: The amounts are converted into New Taiwan dollars based on the average exchange rate between the Chinese yuan and the New Taiwan dollar for the year 2022, which was 4.422.

Note 5: The profits or losses are recognized based on the audited financial statements of the invested companies during the same period as reviewed by the parent company's auditors.

Note 6: The company's board of directors passed a resolution on November 12, 2021, to dissolve and liquidate Dongguan Shi Jie Jian Zhi Electronics Factory, a subsidiary of Jian Zhi Electronics (Mauritius) Ltd., to offset the outstanding amount owed to Jian Zhi Electronics (Mauritius) Ltd. The recognized profit was NT$401,690 thousand (RMB 90,839 thousand), which was offset against the receivable from Jian Zhi Electronics (Mauritius) Ltd. Therefore, it was not included in the consolidated financial statements. The dissolution and liquidation procedures were completed on March 7, 2022.

• Note 7: Dongguan Lian De Electronics (Dongguan) Co., Ltd. completed the sale of Dongguan Wan Lin Electronics Co., Ltd. on August 31, 2022. The company repurchased the subsidiary through its subsidiary Lian Yao Investment Co., Ltd. in January 2023, and the company's substantive control has not been transferred, so it is still included as a consolidated entity in the preparation of consolidated financial statements.

73

Bestec Power Electronics Co., Ltd.

The following major transactions with mainland investee companies directly or indirectly through the third region, as well as their prices, payment terms, unrealized gains and losses, and other relevant informationJanuary 1 to December 31, 2022

Table 6

Unit: Unless otherwise specified, amounts are in thousands of New Taiwan Dollars (NTD).

Investee in mainland China	Type of transaction	Sales (purchases) and disposal price	Sales (purchases) and disposal price	Price	Transaction terms	Transaction terms	Accounts and notes receivable (payable)	Accounts and notes receivable (payable)	Unrealized gains and losses	Remarks
		Amount	%		Payment terms	Comparison with regular transactions	Amount	%
Bestec Power Electronics Co., Ltd. Bestec Power Electronics (Dongguan) Co Bestec Power Electronics Co., Ltd. Dongguan Wanlin Electronics Co	Purchase of goods Sale Purchase of goods Sale	$ 240981 ( 240,981 ) 128,310 ( 128,310 )	65% ( 100% ) 35% ( 62% )	No material departure. No material departure. No material departure. No material departure.	Open account 90 days Open account 90 days Open account 90 days Open account 90 days	No material departure. No material departure. No material departure. No material departure.	( $ 25,316 ) 25,316 ( 114,740 ) 114,740	( 18% ) 100% ( 81% ) 100%	$ - - - -	- - - -

74

Bestec Power Electronics Co., Ltd. Major Shareholder Information As of December 31, 2022

Table 7

Major Shareholder Name	Shareholdings	Shareholdings
	Number of Shares Held	Percentage of shareholding
FORFUNE INTERNATIONAL CO., LTD. Chen Yiwen Chen Songzhe Chen Mingzhi Li Huiyu	16,255,614 6,648,679 6,494,231 5,683,557 5,044,460	22.99% 9.40% 9.18% 8.04% 7.13%

Note 1: This table presents information on major shareholders that hold 5% or more of the total outstanding shares of common stock and preferred stock (including treasury stock) that have completed non-physical registration delivery as of the last business day of the quarter. The data is provided by Taiwan Depository & Clearing Corporation. The number of shares recorded in the individual financial reports of the company may differ due to differences in calculation methods or other factors.

75

§TABLE OF CONTENTS FOR SIGNIFICANT ACCOUNTING POLICIES§

N U M B E R / I N D E X

I T E M Detailed List of Assets, Liabilities, and Equity Items Cash and Cash Equivalents Statement Detailed List 1 Detailed list of account receivable Detailed List 2 Statement of other accounts receivable Note7 Detailed Inventory List Detailed List 3 Schedule of Other Current Assets Detailed List 4 Statement of changes in investment property Detailed List 5 accounted for using the equity method Schedule of Changes in Property, Plant and Note 10 Equipment Detailed List of Changes in Accumulated Note 10 Depreciation of Property, Plant, and Equipment Schedule of Changes in Intangible Assets Note 12 Schedule of Deferred Tax Assets Note 20 Detailed Short-Term Borrowings List Note 14 Detailed List of Accounts Payable Detailed List 6 Detailed List of Other Payables Detailed List 7 Statement of other current liabilities Detailed List 8 Detailed Long-Term Borrowings List Detailed List 9 Schedule of Deferred Tax Liabilities Note 20 Detailed Income Statement Detailed Statement of Operating Revenue Detailed List 10 Detailed Statement of Operating Costs Detailed List 11 Detailed Statement of Selling Expenses Detailed List 12 Detailed Statement of Administrative Expenses Detailed List 13 Detailed Statement of Research and Development Detailed List 14 Expenses Schedule of Other Income and Expense Net Note 19 Summary of Employee Benefits, Depreciation, Detailed list 15 Amortization and Accrual Expenses by Function for the Current Year Employee benefits

76

Bestec Power Electronics Co., Ltd.

Cash and Cash Equivalents Statement As of December 31, 2022

Detailed List 1

Unit: NT$ thousands

I t e m Petty cash Cash in Treasury Subtotal Current account deposit in New Taiwan Dollars Current account deposit in foreign currency - US dollar Current account deposit in foreign currency - Renminbi Current account deposit in foreign currency - Hong Kong dollar Subtotal Equivalent to cash and cash equivalents Bank time deposit with an original maturity of within 3 months Chang Hwa Commercial Bank Total	S u m m a r y USD 2,332,000, with an exchange rate of 30.710. RMB 212,000, with an exchange rate of 4.408. HKD 92,000, with an exchange rate of 3.938	Due Date 112.01.14- 112.03.29	A n n u a l interest rate. 4.26%-4.89%	A m o u n t	A m o u n t
					$ 10 583 593 6,164 71,608 933 362 79,067 96,220 $ 175,880

77

Bestec Power Electronics Co., Ltd. Detailed list of account receivable As of December 31, 2022

Detailed List 2

Unit: NT$ thousands

Customer Name Non-related party: Company A Company B Company C Others (Note 1) Less : Allowance for doubtful accounts - non related parties Net amount		Amount
	(	$ 75,419 44,859 26,871 7,823 154,972 5) $ 154,967

Note 1: The balance of each account does not exceed 5% of the balance of this account.

78

Bestec Power Electronics Co., Ltd.

Detailed Inventory List

As of December 31, 2022

Detailed List 3

Unit: NT$ thousands

I t e m Finished goods Deduct: Allowance for decline in value and bad debts (Note)	A	m o	u n t	u n t
	C	o s t $ 88 58) $ 30	Net realizable v a l u e
	(			$ 92

• Note: Allowance for decline in value and bad debts is provided based on the inventory reserve policy.

79

Bestec Power Electronics Co., Ltd. Schedule of Other Current Assets As of December 31, 2022

Detailed List 4			Unit:	NT$ thousands	NT$ thousands	NT$ thousands	NT$ thousands
I t	e	m	A	m	o u	n	t
Offset against business tax payable				$	21,307
Expense Prepaid					2,408
Others (Note)					1,549
Total				$	25,264

Note: The balances of each item do not exceed 5% of the balance of this account.

80

Bestec Power Electronics Co., Ltd.

Detailed table of changes in long-term equity investments accounted for using the equity method

January 1 to December 31, 2022

Detailed List 5

Unit: Unless otherwise specified, all amounts are in thousands of New Taiwan Dollars.

N a m e o f I n v e s t e e Wan Jhih Electronic Limited Ninety-Nine Electronic Limited Baotai Construction Co., Ltd. Lianyao Investment Co., Ltd. Bestec Power International Ltd. Chien Chih Electronic Co., Ltd. Bestec Biotechnology Co., LTD. Bestec Inv, Inc. Total	B e g i n n i n g b a l a n c e N u m b e r o f s h a r e s A m o u n t 50,000 $ 121,125 1,356,181 148,624 20,000,000 170,824 8,000,000 80,471 2,000,000 107,068 900,000 53,592 2,000,000 10,663 9,250 1,051 $ 693,418	B e g i n n i n g b a l a n c e N u m b e r o f s h a r e s A m o u n t 50,000 $ 121,125 1,356,181 148,624 20,000,000 170,824 8,000,000 80,471 2,000,000 107,068 900,000 53,592 2,000,000 10,663 9,250 1,051 $ 693,418	T h i sye a r ' s i n c r e a s e N u m b e r o f s h a r e s A m o u n t - $ 2,639 - 3,992 - - - - - 5,690 - 9,852 - - - 109 $ 22,282	T h i sye a r ' s i n c r e a s e N u m b e r o f s h a r e s A m o u n t - $ 2,639 - 3,992 - - - - - 5,690 - 9,852 - - - 109 $ 22,282	T h i sye a r ' s d e c r e a s e N u m b e r o f s h a r e s A m o u n t - $ - - - - 2,320 - 3,758 - - 900,000 63,444 - 18 - 211 $ 69,751	T h i sye a r ' s d e c r e a s e N u m b e r o f s h a r e s A m o u n t - $ - - - - 2,320 - 3,758 - - 900,000 63,444 - 18 - 211 $ 69,751	E n d i n	g b a	l a n c e A m o u n t $ 123,764 152,616 168,504 76,713 112,758 - 10,645 949 $ 645,949	N e t e q u i t y v a l u e $ 123,764 152,616 168,504 76,713 112,758 - 10,645 949 $ 645,949	Guarantee provision or P l e d g e S t a t u s None None None None None None None None	R e m a r k s
	N u m b e r o f s h a r e s 50,000 1,356,181 20,000,000 8,000,000 2,000,000 900,000 2,000,000 9,250		N u m b e r o f s h a r e s - - - - - - - -		N u m b e r o f s h a r e s - - - - - 900,000 - -		N u m b e r o f s h a r e s 50,000 1,356,181 20,000,000 8,000,000 2,000,000 - 2,000,000 9,250	% sharehol d i n g 100 100 100 100 100 - 100 100
												Note 1 Note 2 Note 3 Note 4 Note 5 Note 6 Note 7 Note 8

Note 1: The increase in the current year was due to the equity income of subsidiary companies amounting to NTD 696 thousand and the foreign operation financial statements translation differences of NTD 1,943 thousand.

Note 2: The increase in the current year was due to the equity income of subsidiary companies amounting to NTD 1,832 thousand and the foreign operation financial statements translation differences of NTD 2,160 thousand.

Note 3: The decrease in the current year was due to the loss share of subsidiary companies accounted for using the equity method amounting to NTD 2,320 thousand. Note 4 ： The decrease in the current year was due to the loss share of subsidiary companies accounted for using the equity method amounting to NTD 3,758 thousand. Note 5 ： The increase in the current year was due to the equity income of subsidiary companies accounted for using the equity method amounting to NTD 5,690 thousand. Note 6 ： The increase in the current year was due to the equity income of subsidiary companies accounted for using the equity method amounting to NTD 665 thousand and the foreign operation financial statements translation differences of NTD 9,187 thousand; the decrease in the current year was due to the realized investment loss of NTD 9,129 thousand, and the company dissolved and liquidated the invested company on November 12, 2021, and received a stock payment of NTD 54,315 thousand in the 2022 fiscal year.

Note 7: The decrease in the current year was due to the loss share of subsidiary companies accounted for using the equity method amounting to NTD 18 thousand.

Note 8: The increase in the current year was due to the foreign operation financial statements translation differences of NTD 109 thousand; the decrease in the current year was due to the loss share of subsidiary companies accounted for using the equity method amounting to NTD 211 thousand.

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Bestec Power Electronics Co., Ltd.

Detailed List of Accounts Payable As of December 31, 2022

Detailed List 6										Unit:	NT$ thousands	NT$ thousands	NT$ thousands	NT$ thousands
N a m e o	f	S	u	p	p	l	i	e	r	A	m	o u	n	t
Non-related party:
Supplier A											$	2,000
Related party:
Dongguan Wanlin		Electronics			Co							114,740
Bestec Power Electronics (Dongguan)								Co				25,316
Total											$	142,056

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Bestec Power Electronics Co., Ltd.

Detailed List of Other Payables As of December 31, 2022

Detailed List 7 Unit: NT$ thousands

I t e m Non-related party: Compensation and bonuses payable Labor costs payable Others (Note) Total	A m o u n t	A m o u n t
		$ 4,533 2,285 2,167 $ 8,985

Note: The balances of each item do not exceed 5% of the balance of this account.

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Bestec Power Electronics Co., Ltd.

Statement of other current liabilities

As of December 31, 2022

Detailed List 8			Unit:	NT$ thousands	NT$ thousands	NT$ thousands	NT$ thousands
I t	e	m	A	m	o u	n	t
Contractual liabilities				$	9,010
Temporary and Collect-on-Delivery
Payments					3,396
Total				$	12,406

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Unit: NT$ thousands

Bestec Power Electronics Co., Ltd.

Detailed Long-Term Borrowings List

As of December 31, 2022

Detailed List 9

c r e d i t o r b a n k Credit Loan Cooperative Bank Taiwan SME Bank Chang Hwa Commercial Bank Total	T e r m a n d R e p a y m e n t M e t h o d Period is from 109/8/20 to 112/9/20, with monthly interest payments. The principal amount will be amortized over 36 periods, with 2,000 thousand dollars being repaid each period starting from 109/8/20 to 112/8/20. The final payment will include the remaining principal. Period is from 108/5/29 to 113/5/29, with monthly interest payments. The principal amount will be evenly amortized on a monthly basis. Period is from 111/8/5 to 113/10/5, with a lending period of 26 months. The short-term borrowing balance will be collected upon lending.	A m	o u		n t o t a l $ 252,400 5,667 168,000 $ 426,067	A n n u a l Interest Rate ( % ) 2.101 2.175 1.750	M o r t g a g e o r collateral condition
		P o r t i o n d u e within one year $ 252,400 4,000 - $ 256,400	expires after one y e a r $ - 1,667 168,000 $ 169,667	T
							Land, buildings and structures None Land

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Bestec Power Electronics Co., Ltd. Detailed Statement of Operating Revenue January 1 to December 31, 2022

Detailed List 10

Unit: NT$ thousands

I t e m Sales revenue office power supply Electric toothbrush charger Total Sales return Sales Allowance Net sales revenue	Quantity (units) 2,910,366 271,427	A	m o u n t
		$ 364,379 42,962 407,341 ( 4 ) ( 42) $ 407,295

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Bestec Power Electronics Co., Ltd.

Detailed Statement of Operating Costs

January 1 to December 31, 2022

Detailed List 11		Unit:	NT$ thousands	NT$ thousands	NT$ thousands	NT$ thousands	NT$ thousands
I t e	m	A	m	o	u	n	t
Beginning inventory of goods			$		114
This year's purchases (materials)				369,291
Add: inventory write-down and recovery
gain					36
Decrease: Ending Inventory of Goods			(		88	)
R&D department requisitioned
Cost of sales			$	369,216

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	Bestec Power Electronics Co., Ltd.	Bestec Power Electronics Co., Ltd.
	Detailed Statement of Selling Expenses
	January 1 to December 31, 2022
Detailed List 12			Unit:	NT$ thousands
I t	e	m	A	m	o	u	n	t
employee benefits				$		206
Salary expense						128
Others (Note)						44
Total				$		378

Note: The balances of each item do not exceed 5% of the balance of this account.

88

Bestec Power Electronics Co., Ltd.

		Bestec Power Electronics Co., Ltd.	Bestec Power Electronics Co., Ltd.	Bestec Power Electronics Co., Ltd.
		Detailed Statement of Administrative Expenses
		January 1 to December 31, 2022
Detailed List	13			Unit:	NT$ thousands
I	t	e	m	A	m	o u	n	t
Depreciation					$	11,316
Salary expense						9,769
Labor cost						5,615
Others (Note)						8,007
Total					$	34,707

Note: The balances of each item do not exceed 5% of the balance of this account.

89

Bestec Power Electronics Co., Ltd.

Statement of Research and Development Expenses Research and development

expenses

January 1 to December 31, 2022

Detailed List 14			Unit:	NT$ thousands	NT$ thousands	NT$ thousands	NT$ thousands	NT$ thousands
I t	e	m	A	m	o	u	n	t
Salary expense				$	3,558
Depreciation						580
Water, electricity, and gas expenses						513
Insurance premium						405
postage and telecommunication expenses						376
Others (Note)						963
Total				$	6,395

Note: None of the balances of the items exceed 5% of the balance of this account

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Bestec Power Electronics Co., Ltd.

Summary of Functional Expenses for Employee Benefits, Depreciation, Amortization, and

Amortization Expenses Incurred in the Current Period

Year 2022 and January 1 to December 31, 2021

Detailed List 15

Unit: NT$ thousands

N a m e Employee benefits expenses Salary expense Health and labor insurance expense Pension expense Director remuneration Other Employee benefit expense Depreciation expenses Amortization expense	Year 2022 Expenses classified a s O p e r a t i n g E x p e n s e s $ 11,424 1,019 471 2,110 831 $ 15,855 $ 11,895 $ 712	Year 2021	Year 2021
		Expenses classified a s O p e r a t i n g E x p e n s e s
			$ 19,539 1,941 952 1,510 1,010 $ 24,952 $ 12,713 $ 904

Notes:

• The number of employees in respectively the current and prior years were 20 and 26, respectively, including 5 and 5 non-executive directors.

• This is a disclosure requirement for companies listed on a stock exchange or traded on the over-the-counter market. The following information should be disclosed:

• (1) The average employee benefit expense for the current year is NT$916 thousand (total employee benefit expense for the current year minus total director remuneration for the current year, divided by total number of employees for the current year minus the number of directors who are not employees). The average employee benefit expense for the previous year is NT$1,116 thousand.

• (2) The average employee salary expense for the current year is NT$762 thousand (total salary expense for the current year divided by total number of employees for the current year minus the number of directors who are not employees). The average employee salary expense for the previous year is NT$930 thousand.

• (3) The percentage change in average employee salary expense adjustment is -18.07% (the difference between the average employee salary expense for the current year and the previous year divided by the average employee

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salary expense for the previous year).

• (4) The total remuneration for supervisors (members of the audit committee) for the current year is NT$1,465 thousand, and for the previous year is NT$780 thousand.

• (5) According to the company's articles of association, when the company's directors and supervisors perform their duties, the company may pay them remuneration regardless of the company's operating profit or loss. The remuneration is authorized by the board of directors based on their contribution to the company's operation and their value, taking into account the usual industry standards. However, the monthly remuneration for directors and supervisors should be at least NT$30,000. If the company makes a profit for the year, it should allocate no less than 5% of its pre-tax net profit as employee compensation, and no more than 4% as director and supervisor remuneration. However, if the company has accumulated losses, it should reserve the amount required for offsetting the losses before allocating compensation for employees and directors/supervisors based on the aforementioned ratio.

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