CATCHER - Annual Report 2023 | FinancialReports.eu

Catcher Technology Co., Ltd. and Subsidiaries

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

DECLARATION OF CONSOLIDATION OF FINANCIAL STATEMENTS OF AFFILIATES

The companies required to be included in the consolidated financial statements of affiliates in accordance with the “Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises” for the year ended December 31, 2023 are all the same as the companies required to be included in the consolidated financial statements of parent and subsidiary companies as provided in International Financial Reporting Standard 10 “Consolidated Financial Statements”. Relevant information that should be disclosed in the consolidated financial statements of affiliates has all been disclosed in the consolidated financial statements of parent and subsidiary companies. Hence, we do not prepare a separate set of consolidated financial statements of affiliates.

Very truly yours,

CATCHER TECHNOLOGY CO., LTD.

SHUI-SHU HONG Chairman February 22, 2024

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INDEPENDENT AUDITORS’ REPORT

The Board of Directors and Shareholders Catcher Technology Co., Ltd.

Opinion

We have audited the accompanying consolidated financial statements of Catcher Technology Co., Ltd. (the “Company”) and its subsidiaries (collectively referred to as the “Group”), which comprise the consolidated balance sheets as of December 31, 2023, December 31, 2022 and January 1, 2022, and the consolidated statements of comprehensive income, changes in equity and cash flows for the years then ended, and the notes to the consolidated financial statements, including material accounting policy information (collectively referred to as the “consolidated financial statements”).

In our opinion, based on our audits and the report of other auditors (please refer to the Other Matter paragraph), the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as of December 31, 2023, December 31, 2022 and January 1, 2022, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) endorsed and issued into effect by the Financial Supervisory Commission, the Republic of China.

Basis for Opinion

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

Key Audit Matters

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

The key audit matter identified in the Group’s consolidated financial statements for the year ended December 31, 2023 is as follows:

Due to the sales amount changed largely or with other specific characteristics of specific customers, we considered the materiality of this to the consolidated financial statements as well as the regulations in the auditing standards regarding the presumed significant risk in revenue recognition, and thus deemed the authenticity of revenue recognition from the customers as a key audit matter.

The main audit procedures that we performed in regard to this key audit matter include:

We obtained an understanding and tested the effectiveness of the design and implementation of the main internal control related to the sales revenue of the specific customers.
We selected appropriate samples from the subsidiary ledger of sales of the customers mentioned above, and we verified the occurrence of the sales and checked the documents and payment status related to the sales revenue. We also checked for any anomalies existing in the sales counterparties and the payment recipients.

Other Matter

We have also audited the parent company only financial statements of Catcher Technology Co., Ltd. as of and for the years ended December 31, 2023 and 2022 on which we have issued an unmodified opinion with other matter paragraph.

We did not audit the financial statements of certain subsidiaries included in the consolidated financial statements of the Group and the financial statements of an associate accounted for using the equity method as of and for the years ended December 31, 2023 and 2022, but such statements were audited by other auditors. Our opinion, insofar as it relates to the amounts included for certain subsidiaries and some investees accounted for using the equity method, the share of profit of subsidiaries and associates, and the amount of comprehensive income of subsidiaries and associates, is based solely on the reports of other auditors. The total assets of certain subsidiaries were NT$3,001,411 thousand and NT$1,533,669 thousand, accounting for 1.17% and 0.63%, of consolidated total assets as of December 31, 2023 and 2022, respectively; the total comprehensive income was a gain of NT$70,896 thousand and a loss of NT$257,431 thousand, accounting for 0.81% and (1)% of consolidated total comprehensive income for the years ended December 31, 2023 and 2022, respectively. The investments accounted for using the equity method were NT$673,336 thousand and NT$447,678 thousand, accounting for 0.3% and 0.2% of consolidated total assets as of December 31, 2023 and 2022, respectively; the share of profit of associates was NT$47,258 thousand and NT$36,841 thousand, accounting for 0.5% and 0.1% of consolidated total comprehensive income for the years ended December 31, 2023 and 2022, respectively.

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

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

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

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

Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements

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

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

Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient and appropriate audit evidence regarding the financial information of entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision, and performance of the group audit. We remain solely responsible for our audit opinion.
4 -

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

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

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

The engagement partners on the audits resulting in this independent auditors’ report are Hung-Ju Liao and Chi-Chen Lee.

Deloitte & Touche Taipei, Taiwan Republic of China February 22, 2024

Notice to Readers

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

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

CATCHER TECHNOLOGY CO., LTD. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2023, DECEMBER 31, 2022 AND JANUARY 1, 2022

(In Thousands of New Taiwan Dollars)

ASSETS CURRENT ASSETS Cash and cash equivalents (Notes 4 and 6) Financial assets at fair value through profit or loss - current (Notes 4 and 7) Financial at fair value through other comprehensive income - current (Notes 4 and 8) Financial assets at amortized cost - current (Notes 4, 9 and 32) Trade receivables (Notes 4, 11 and 25) Other receivables (Notes 4 and 11) Current tax assets (Notes 4 and 27) Inventories (Notes 4, 5, 12 and 33) Other current assets (Note 19) Total current assets NON-CURRENT ASSETS Financial at fair value through profit or loss - non-current (Notes 4 and 7) Financial assets at fair value through other comprehensive income - non-current (Notes 4 and 8) Financial assets at amortized cost - non-current (Notes 4 and 9) Investments accounted for using the equity method (Notes 4 and 14) Property, plant and equipment (Notes 4, 15 and 33) Right-of-use assets (Notes 4 and 16) Investment properties (Notes 4 and 17) Intangible assets (Notes 4 and 18) Deferred tax assets (Notes 4 and 27) Other non-current assets (Note 19) Total non-current assets TOTAL LIABILITIES AND EQUITY CURRENT LIABILITIES Short-term borrowings (Notes 20 and 32) Contract liabilities - current (Notes 4 and 25) Trade payables (Note 21) Other payables (Note 22) Dividends payable Current tax liabilities (Notes 4 and 27) Lease liabilities - current (Notes 4 and 16) Other current liabilities (Note 22) Total current liabilities NON-CURRENT LIABILITIES Deferred tax liabilities (Notes 4, 5 and 27) Lease liabilities - non-current (Notes 4 and 16) Net defined benefit liabilities - non-current (Notes 4 and 23) Other non-current liabilities (Note 22) Total non-current liabilities Total liabilities EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY (Note 24) Share capital - ordinary shares Capital surplus Retained earnings Legal reserve Special reserve Unappropriated earnings Total retained earnings Other equity Treasure shares Total equity attributable to owners of the Company NON-CONTROLLING INTERESTS Total equity TOTAL		December 31, 2023		December 31, 2022 (After Adjustment)		January 1, 2022 (After Adjustment)
		Amount % $ 42,462,866 17 378,550 - 3,900,676 1 66,975,463 26 3,787,393 1 1,631,003 1 13,688 - 2,250,076 1 221,420 - 121,621,135 47 1,516,149 1 85,762,654 33 25,615,944 10 2,930,670 1 12,772,462 5 968,308 - 1,168,885 1 10,698 - 3,900,308 2 112,568 - 134,758,646 53 $ 256,379,781 100 $ 77,417,479 30 12,264 - 1,452,455 1 4,365,322 2 3,401,820 1 5,432,719 2 3,998 - 881,047 - 92,967,104 36 5,301,423 2 133,357 - 6,543 - 12,300 - 5,453,623 2 98,420,727 38 6,803,641 3 17,877,080 7 22,902,142 9 545,903 - 112,488,261 44 135,936,306 53 (2,669,364) (1) - - 157,947,663 62 11,391 - 157,959,054 62 $ 256,379,781 100		Amount % $ 57,546,920 24 189,736 - 143,609 - 116,953,536 49 9,564,795 4 843,330 - 52,278 - 3,392,456 1 309,385 - 188,996,045 78 1,298,244 1 3,509,701 2 25,721,104 11 2,181,179 1 14,338,395 6 999,332 - 953,276 - 22,707 - 3,440,126 1 102,581 - 52,566,645 22 $ 241,562,690 100 $ 56,696,000 24 42,803 - 2,720,459 1 5,686,595 2 - - 3,183,772 1 5,923 - 856,684 - 69,192,236 28 6,424,940 3 126,297 - 6,569 - 10,036 - 6,567,842 3 75,760,078 31 7,144,671 3 18,771,534 8 22,354,680 9 16,961,466 7 102,803,702 43 142,119,848 59 (2,244,484) (1) - - 165,791,569 69 11,043 - 165,802,612 69 $ 241,562,690 100		Amount % $ 53,874,283 22 3,967,937 2 1,870,987 1 122,046,739 49 9,665,413 4 503,406 - 425,494 - 3,316,762 1 406,109 - 196,077,130 79 958,795 - 5,430,345 2 21,132,384 9 8,050 - 17,868,347 7 1,016,568 1 221,565 - 57,707 - 4,058,919 2 72,993 - 50,825,673 21 $ 246,902,803 100 $ 78,031,726 32 32,742 - 3,465,780 1 5,983,148 2 - - 309,608 - 13,168 - 1,396,923 1 89,233,095 36 6,100,759 3 126,873 - 6,578 - 8,776 - 6,242,986 3 95,476,081 39 7,616,181 3 20,008,824 8 21,497,294 8 14,394,310 6 108,287,799 44 144,179,403 58 (16,961,466) (7) (3,465,809) (1) 151,377,133 61 49,589 - 151,426,722 61 $ 246,902,803 100

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

(With Deloitte & Touche auditors’ report dated February 22, 2024)

CATCHER TECHNOLOGY CO., LTD. AND SUBSIDIARIES

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

OPERATING REVENUE (Notes 4, 16 and 25) OPERATING COSTS (Notes 12, 23 and 26) GROSS PROFIT OPERATING EXPENSES (Notes 11, 23 and 26) Selling and marketing expenses General and administrative expenses Research and development expenses Expected credit gain Total operating expenses PROFIT FROM OPERATIONS NON-OPERATING INCOME AND EXPENSES (Notes 10, 14 and 26) Interest income Other income Foreign exchange gains, net Other losses (gains) Interest expense Expected credit loss Share of profit or loss of associates Total non-operating income and expenses PROFIT BEFORE INCOME TAX INCOME TAX EXPENSE (Notes 4 and 27) NET PROFIT OTHER COMPREHENSIVE INCOME (LOSS) (Notes 14 and 24) Items that will not be reclassified subsequently to profit or loss: Unrealized (loss) gain on investments in equity instruments at fair value through other comprehensive income		2023 Amount % $ 18,073,884 100 13,139,923 73 4,933,961 27 281,316 1 1,777,396 10 1,248,355 7 - - 3,307,067 18 1,626,894 9 10,400,557 58 753,764 4 455,997 2 142,483 1 (1,191,213) (7) - - 104,565 1 10,666,153 59 12,293,047 68 3,141,502 17 9,151,545 51 223,469 1		2022
				Amount % $ 27,820,529 100 18,953,632 68 8,866,897 32 374,384 1 2,080,795 8 1,494,209 5 (51,289) - 3,898,099 14 4,968,798 18 4,313,238 15 1,088,373 4 8,200,548 30 (1,321,555) (5) (704,063) (3) (76,671) - 74,379 - 11,574,249 41 16,543,047 59 5,646,809 20 10,896,238 39 (31,564) - (Continued)

CATCHER TECHNOLOGY CO., LTD. AND SUBSIDIARIES

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

Items that may be reclassified subsequently to profit or loss: Exchange differences on translating the financial statements of foreign operations Unrealized gain (loss) on investment in debt instrument at fair value through other comprehensive income Share of the other comprehensive income(loss) of associates accounted for using the equity method Other comprehensive loss for the year, net of income tax TOTAL COMPREHENSIVE INCOME FOR THE YEAR NET PROFIT (LOSS) ATTRIBUTABLE TO: Owners of the Company Non-controlling interests TOTAL COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO: Owners of the Company Non-controlling interests EARNINGS PER SHARE (Note 28) Basic Diluted		2023 Amount % $ (744,256) (4) 94,202 1 1,477 - (425,108) (2) $ 8,726,437 48 $ 9,151,193 51 352 - $ 9,151,545 51 $ 8,726,089 48 348 - $ 8,726,437 48 $ 13.33 $ 13.32		2022
				Amount % $ 14,859,468 53 (80,051) - 2,459 - 14,750,312 53 $ 25,646,550 92 $ 10,902,179 39 (5,941) - $ 10,896,238 39 $ 25,647,939 92 (1,389) - $ 25,646,550 92 $ 15.14 $ 15.11

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

(With Deloitte & Touche auditors’ report dated February 22, 2024)

(Concluded)

CATCHER TECHNOLOGY CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY YEARS ENDED DECEMBER 31, 2023 AND 2022 (In Thousands of New Taiwan Dollars)

BALANCE AT JANUARY 1, 2022 Appropriation of the 2021 earnings (Note 24) Legal reserve Special reserve Cash dividends distributed by the Company Changes from investments in associates accounted for using the equity method Overdue unclaimed dividends of shareholders Net profit (loss) for the year ended December 31, 2022 Other comprehensive loss for the year ended December 31, 2022, net of income tax Total comprehensive income (loss) for the year ended December 31, 2022 Disposal of investments in equity instruments designated as at fiar value through other comprehensive income Buy-back of ordinary shares (Note 24) Cancelation of treasury shares (Note 24) Decrease in non-controlling interests BALANCE AT DECEMBER 31, 2022 Appropriation of the 2022 earnings (Note 24) Legal reserve Special reserve Cash dividends distributed by the Company Appropriation of the first half 2023 earnings (Note 24) Legal reserve Special reserve Cash dividends distributed by the Company Changes from investments in associates accounted for using the equity method Overdue unclaimed dividends of shareholders Net profit for the year ended December 31, 2023 Other comprehensive loss for the year ended December 31, 2023, net of income tax Total comprehensive income (loss) for the year ended December 31, 2023 Disposal of investments in equity instruments designated as at fiar value through other comprehensive income Buy-back of ordinary shares (Note 24) Cancelation of treasury shares (Note 24) BALANCE AT DECEMBER 31, 2023						Equ	ity Attributable to	Ow	ners of the Company				Total $ 151,377,133 - - (7,297,531 ) (355 ) 1,192 10,902,179 14,745,760 25,647,939 - (3,936,809 ) - - 165,791,569 - - (6,803,641 ) - - (3,401,820 ) 1,349 952 9,151,193 (425,104) 8,726,089 - (6,366,835 ) - $ 157,947,663	Non-controlling Interests $ 49,589 - - - - - (5,941 ) 4,552 (1,389) - - - (37,157) 11,043 - - - - - - - - 352 (4) 348 - - - $ 11,391	Total Equity $ 151,426,722 - - (7,297,531 ) (355 ) 1,192 10,896,238 14,750,312 25,646,550 - (3,936,809 ) - (37,157) 165,802,612 - - (6,803,641 ) - - (3,401,820 ) 1,349 952 9,151,545 (425,108) 8,726,437 - (6,366,835 ) - $ 157,959,054
		Share Capital $ 7,616,181 - - - - - - - - - - (471,510 ) - 7,144,671 - - - - - - - - - - - - - (341,030) $ 6,803,641	Capital Surplus $ 20,008,824 - - - - 1,192 - - - - - (1,238,482 ) - 18,771,534 - - - - - - 353 952 - - - - - (895,759) $ 17,877,080		R	etained Earnings				Other Equity	Total $ (16,961,466 ) - - - - - - 14,745,760 14,745,760 (28,778 ) - - - (2,244,484 ) - - - - - - - - - (425,104) (425,104) 224 - - $ (2,669,364)	Treasury Shares $ (3,465,809 ) - - - - - - - - - (3,936,809 ) 7,402,618 - - - - - - - - - - - - - - (6,366,835 ) 6,366,835 $ -
					Legal Reserve $ 21,497,294 857,386 - - - - - - - - - - - 22,354,680 523,797 - - 23,665 - - - - - - - - - - $ 22,902,142	Special Reserve $ 14,394,310 - 2,567,156 - - - - - - - - - - 16,961,466 - (14,716,983 ) - - (1,698,580 ) - - - - - - - - - $ 545,903	Unappropriated Earnings $ 108,287,799 (857,386 ) (2,567,156 ) (7,297,531 ) (355 ) - 10,902,179 - 10,902,179 28,778 - (5,692,626 ) - 102,803,702 (523,797 ) 14,716,983 (6,803,641 ) (23,665 ) 1,698,580 (3,401,820 ) 996 - 9,151,193 - 9,151,193 (224 ) - (5,130,046) $ 112,488,261		Exchange Differences on Translating the Financial Statements of Foreign Operations ( $ (16,859,133 ) - - - - - - 14,857,375 14,857,375 - - - - (2,001,758 ) - - - - - - - - - (742,775) (742,775) - - - $ (2,744,533)	Unrealized Gain Loss) on Financial Assets at Fair Value Through Other Comprehensive Income $ (102,333 ) - - - - - - (111,615) (111,615) (28,778 ) - - - (242,726 ) - - - - - - - - - 317,671 317,671 224 - - $ 75,169

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

(With Deloitte & Touche auditors’ report dated February 22, 2024)

CATCHER TECHNOLOGY CO., LTD. AND SUBSIDIARIES

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

CASH FLOWS FROM OPERATING ACTIVITIES
Income before income tax

Adjustments for:
Depreciation expense
Amortization expense
Expected credit loss
Net loss (gain) on financial instruments at fair value through
profit or loss
Interest expense
Net loss on disposal of financial assets
Interest income
Dividend income
Share of (profit) loss of associates
Gain on disposal of property, plant and equipment
Loss on disposal of subsidiaries
Unrealized loss (gain) on foreign currency exchange
Changes in operating assets and liabilities
Trade receivables
Other receivables
Inventories
Other current assets
Contract liabilities
Trade payables
Other payables
Other current liabilities
Net defined benefit liabilities

Cash generated from operations
Dividends received
Income tax paid

Net cash generated from operating activities

CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of financial assets at fair value through other
comprehensive income
Proceeds from sale of financial at fair value through other
comprehensive income
Purchase of financial assets at amortized cost
Proceeds from sale of financial assets at amortized cost
Purchase of financial assets at fair value through profit or loss
Proceeds from disposals of financial assets at fair value through
profit or loss
Acquisition of investments accounted for using the equity
method
Payments for property, plant and equipment
Proceeds from disposal of property, plant and equipment

2023
2022
(After Adjustment)
$ 12,293,047
$ 16,543,047
2,755,327
3,406,043
24,509
44,388
-
25,382
(45,461 )
1,207,127
1,191,213
704,063
2,872
175,820
(10,400,557 )
(4,313,238 )
(69,627 )
(102,502 )
(104,565 )
(74,379 )
(409,904 )
(329,781 )
-
9,883
2,257,470
(347,739 )
5,802,215
236,172
(28,354 )
49,507
858,353
202,771
(449,176 )
(7,651 )
(30,539 )
10,061
(1,259,234 )
(788,137 )
(799,707 )
(924,971 )
40,159
(634,129 )
(26)

(9)
11,628,015
15,091,728
69,626
100,622
(2,517,109)

(1,543,304)
9,180,532

13,649,046
(84,766,385 )
(813,285 )
285,674
3,341,771
(286,520,547 )
(330,470,552 )
334,317,118
338,139,804
(506,715 )
(7,283,270 )
110,201
9,225,397
(744,740 )
-
(403,419 )
(468,951 )
411,841
478,102
(Continued)

10 -

CATCHER TECHNOLOGY CO., LTD. AND SUBSIDIARIES

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

Increase in refundable deposits

Decrease in refundable deposits
Payments for intangible assets
Payments for investment properties
Interest received
Dividends received from associates

Net cash generated from (used in) investing activities

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from short-term borrowings
Repayments of short-term borrowings
Proceeds from guarantee deposits received
Refunds of guarantee deposits received
Repayment of the principal portion of lease liabilities
Cash dividends paid
Payments for buy-back of ordinary shares
Interest paid
Decrease in non-controlling interests
Proceeds from unclaimed dividends

Net cash generated from (used in) financing activities

EFFECTS OF EXCHANGE RATE CHANGES ON THE
BALANCE OF CASH AND CASH EQUIVALENTS HELD IN
FOREIGN CURRENCIES

NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF
THE YEAR

CASH AND CASH EQUIVALENTS AT THE END OF THE
YEAR

2023
2022
(After Adjustment)
$ (64 )
$ (13,357 )
12,993
2,330
(8,577 )
-
(466,967 )
-
7,898,704
3,608,787
113,005

110,624
(30,267,878)

15,857,400
730,398,000
406,059,178
(709,575,793 )
(427,394,904 )
12,133
22,909
(16,125 )
(14,888 )
(6,329 )
(13,286 )
(6,803,641 )
(7,297,490 )
(6,366,835 )
(3,981,444 )
(1,184,944 )
(694,572 )
-
(37,157 )
952

1,192
6,457,418

(33,350,462)
(454,126)

7,516,653
(15,084,054 )
3,672,637
57,546,920

53,874,283
$ 42,462,866
$ 57,546,920

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

(With Deloitte & Touche auditors’ report dated February 22, 2024)

(Concluded)

11 -

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

CATCHER TECHNOLOGY CO., LTD. AND SUBSIDIARIES

1. GENERAL INFORMATION

Catcher Technology Co., Ltd. (the “Company”) was incorporated in November 1984 under the laws of the Republic of China (ROC). The Company mainly manufactures and sells aluminum and magnesium extrusion and stamping products and molds. It also provides leasing services.

The Company’s shares were listed and traded on the Taipei Exchange (formerly called the GreTai Securities Market) from November 1999 until September 2001, when the Company listed its shares on the Taiwan Stock Exchange (TWSE) under stock number “2474” and ceased listing and trading on the Taipei Exchange.

The Company increased its capital by listing its shares in the form of Global Depositary Receipts (GDRs) on the Luxembourg Stock Exchange (Euro MTF) in June 2011.

The consolidated financial statements of the Company and its subsidiaries, collectively referred to as the Group, are presented in the Company’s functional currency, the New Taiwan dollar.

2. APPROVAL OF FINANCIAL STATEMENTS

The consolidated financial statements were published after being approved by the Company’s board of directors on February 22, 2024.

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

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

The initial application of the IFRS Accounting Standards endorsed and issued into effect by the FSC did not have material impact on the accounting policies of the Company and its subsidiaries (collectively referred to as the “Group”).

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

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

Note 1: Unless stated otherwise, the above IFRS Accounting Standards will be effective for annual reporting periods beginning on or after their respective effective dates.
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Note 2: A seller-lessee shall apply the Amendments to IFRS 16 retrospectively to sale and leaseback transactions entered into after the date of initial application of IFRS 16.
Note 3: The amendments provide some transition relief regarding disclosure requirements.

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

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

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

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

d. Presentation reclassification

The management of the Group considers the bank deposits repatriated for restricted purposes in accordance with the Management, Utilization, and Taxation of Repatriated Offshore Funds Act. do not change the nature of the deposit as the entity can access those amounts on demand. The management concludes that the presentation of cash and cash equivalents is more appropriate and, therefore, has changed the presentation of the consolidated balance sheets and consolidated statements of cash flows in 2023. The financial assets at amortized cost were reclassified to cash and cash equivalents with a carrying amount of $17,551 thousand and $758,998 thousand on December 31, 2022 and January 1, 2022. The impact on cash flows for the year ended December 31, 2022 was as follows:

Net cash generated from operating activities Net cash generated from investing activities Net increase in cash and cash equivalents	Adjustments $ - (741,447) $ (741,447)

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4. SUMMARY OF MATERIAL ACCOUNTING POLICIEY INFORMATION

a. Statement of compliance

The consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IFRS Accounting Standards as endorsed and issued into effect by the FSC.

b. Basis of preparation

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

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

1) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities;
2) Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for assets or liabilities, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and
3) Level 3 inputs are unobservable inputs for assets or liabilities.
c. Classification of current and non-current assets and liabilities

Current assets include:

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

Current liabilities include:

1) Liabilities held primarily for the purpose of trading;
2) Liabilities due to be settled within twelve months after the reporting period; and
3) Liabilities for which the Group does not have an unconditional right to defer settlement for at least twelve months after the reporting period.

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

d. Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Company and the entities controlled by the Company (i.e., its subsidiaries).

Income and expenses of subsidiaries acquired or disposed of during the period are included in the consolidated statement of comprehensive income from the effective dates of acquisitions up to the effective dates of disposals, as appropriate.

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When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those of the Group.

All intra-group transactions, balances, income and expenses are eliminated in full upon consolidation. Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

Changes in the Group’s ownership interests in subsidiaries that do not result in the Group losing control over the subsidiaries are accounted for as equity transactions. The carrying amounts of the interests of the Group and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to the owners of the Company.

When the Group loses control of a subsidiary, a gain or loss is recognized in profit or loss and is calculated as the difference between (i) the aggregate of the fair value of the consideration received and any investment retained in the former subsidiary at its fair value at the date when control is lost and (ii) the assets (including any goodwill) and liabilities and any non-controlling interests of the former subsidiary at their carrying amounts at the date when control is lost. The Group accounts for all amounts recognized in other comprehensive income in relation to that subsidiary on the same basis as would be required had the Group directly disposed of the related assets or liabilities.

See Note 13, tables 8 and 9 for detailed information on subsidiaries (including percentages of ownership and main businesses).

e. Foreign currencies

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

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

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

Non-monetary items denominated in foreign currencies and measured at historical cost are stated at the reporting currency as originally translated from the foreign currency.

For the purpose of presenting consolidated financial statements, assets and liabilities of a foreign operation (including subsidiaries in other countries that use currencies which are different from the currency of the Group) are translated into the New Taiwan dollar at the exchange rates prevailing at the end of the reporting period; and income and expense items are translated at the average exchange rates for the period. The resulting currency translation differences are recognized in other comprehensive income attributed to the owners of the Company and non-controlling interests as appropriate.

On the disposal of a foreign operation (i.e., a disposal of the Company’s entire interest in a foreign operation, or a disposal involving the loss of control over a subsidiary that includes a foreign operation, or a partial disposal of an interest in a joint arrangement or an associate that includes a foreign operation

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of which the retained interest becomes a financial asset), all of the exchange differences accumulated in equity in respect of that operation attributable to the owners of the Company are reclassified to profit or loss.

f. Inventories

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

g. Investments in associates

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

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

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

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

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

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

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

h. Property, plant and equipment

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

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

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

i. Investment properties

Investment properties are properties held to earn rentals and/or for capital appreciation. Investment properties include land held for a currently undetermined future use.

Investment properties are initially measured at cost, including transaction costs. Subsequent to initial recognition, investment properties are measured at cost less accumulated depreciation and accumulated impairment loss. Depreciation is recognized using the straight-line method.

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

j. Intangible assets

Intangible assets with finite useful lives that are acquired separately are initially measured at cost and subsequently measured at cost less accumulated amortization and accumulated impairment loss. Amortization is recognized on a straight-line basis. The estimated useful lives, residual values, and amortization methods are reviewed at the end of each reporting period, with the effect of any changes in the estimates accounted for on a prospective basis.

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

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

At the end of each reporting period, the Group reviews the carrying amounts of its property, plant and equipment, right-of-use asset, investment properties and intangible assets to determine whether there is any indication that those assets have suffered any impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. When it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs.

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

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Before the Group recognizes an impairment loss from assets related to contract costs, any impairment loss on inventories, property, plant and equipment and intangible assets related to the contract applicable under IFRS 15 shall be recognized in accordance with applicable standards. Then, impairment loss from the assets related to the contract costs is recognized to the extent that the carrying amount of the assets exceeds the remaining amount of consideration that the Group expects to receive in exchange for related goods or services less the costs which relate directly to providing those goods or services and which have not been recognized as expenses. The assets related to the contract costs are then included in the carrying amount of the cash-generating unit to which they belong for the purpose of evaluating impairment of that cash-generating unit.

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

l. Financial instruments

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

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

1) Financial assets

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

a) Measurement categories

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

i. Financial assets at FVTPL

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

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

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ii. Financial assets at amortized cost

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

i) The financial assets are held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and
ii) The contractual terms of the financial assets give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Subsequent to initial recognition, financial assets at amortized cost, including cash and cash equivalents, investments in debt instruments, accounts receivable at amortized cost, other receivables and refundable deposits, are measured at amortized cost, which equals the gross carrying amount determined using the effective interest method less any impairment loss. Exchange differences are recognized in profit or loss.

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

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

A financial asset is credit impaired when one or more of the following events have occurred:

i) Significant financial difficulty of the issuer or the borrower;
ii) Breach of contract, such as a default;
iii) It is becoming probable that the borrower will enter bankruptcy or undergo a financial reorganization; or
iv) The disappearance of an active market for that financial asset because of financial difficulties.

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

iii. Investments in debt instruments at FVTOCI

Debt instruments that meet the following conditions are subsequently measured at FVTOCI:

i) The debt instrument is held within a business model whose objective is achieved by both the collecting of contractual cash flows and the selling of such financial assets; and
ii) The contractual terms of the debt instrument give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
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Investments in debt instruments at FVTOCI are subsequently measured at fair value. Changes in the carrying amounts of these debt instruments relating to changes in foreign currency exchange rates, interest income calculated using the effective interest method and impairment losses or reversals are recognized in profit or loss. Other changes in the carrying amount of these debt instruments are recognized in other comprehensive income and will be reclassified to profit or loss when the investment is disposed of.

iv. Investments in equity instruments at FVTOCI

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

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

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

b) Impairment of financial assets and contract assets

The Group recognizes a loss allowance for expected credit losses on financial assets at amortized cost (including accounts receivables), investments in debt instruments that are measured at FVTOCI at the end of each reporting period.

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

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

For internal credit risk management purposes, the Group determines that the following situations indicate that a financial asset is in default (without taking into account any collateral held by the Group):

i. Internal or external information show that the debtor is unlikely to pay its creditors.
ii. When a financial asset is more than 180 days past due unless the Group has reasonable and corroborative information to support a more lagged default criterion.

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

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c) Derecognition of financial assets

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

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

2) Equity instruments

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

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

3) Financial liabilities

a) Subsequent measurement

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

b) Derecognition of financial liabilities

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

m. Revenue recognition

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

Revenue from the sale of goods comes from sales of metal casing. Sales of metal casing product are recognized as revenue when the Group has transferred to the buyer the significant risks and rewards of ownership of the goods and the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold, which is determined for export sales on the bases of the terms of the trade and for domestic sales on the bases of the acceptance date of the counterparty. Accounts receivable are recognized concurrently. Advance receipts are recognized as contract liabilities before the conditions of trade of the products are reached.

The Group does not recognize sales revenue on materials delivered to subcontractors because this delivery does not involve a transfer of control.

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n. Leases

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

1) The Group as lessor

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

When the Group subleases a right-of-use asset, the sublease is classified by reference to the right-of-use asset arising from the head lease, not with reference to the underlying asset. However, if the head lease is a short-term lease that the Group, as a lessee, has accounted for applying recognition exemption, the sublease is classified as an operating lease.

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

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

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

2) The Group as lessee

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

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

Right-of-use assets are depreciated using the straight-line method from the commencement dates to the earlier of the end of the useful lives of the right-of-use assets or the end of the lease terms. However, if leases transfer ownership of the underlying assets to the Group by the end of the lease terms or if the costs of right-of-use assets reflect that the Group will exercise a purchase option, the Group depreciates the right-of-use assets from the commencement dates to the end of the useful lives of the underlying assets.

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Lease liabilities are initially measured at the present value of the lease payments, which comprise fixed payments, in-substance fixed payments, variable lease payments which depend on an index or a rate, residual value guarantees, the exercise price of a purchase option if the Group is reasonably certain to exercise that option, and payments of penalties for terminating a lease if the lease term reflects such termination, less any lease incentives receivable. The lease payments are discounted using the interest rate implicit in a lease, if that rate can be readily determined. If that rate cannot be readily determined, the Group will use the lessee’s incremental borrowing rate.

Subsequently, lease liabilities are measured at amortized cost using the effective interest method, with interest expense recognized over the lease terms. When there is a change in a lease term, a change in the amounts expected to be payable under a residual value guarantee, a change in the assessment of an option to purchase an underlying asset, or a change in future lease payments resulting from a change in an index or a rate used to determine those payments, the Group remeasures the lease liabilities with a corresponding adjustment to the right-of-use-assets. However, if the carrying amount of the right-of-use assets is reduced to zero, any remaining amount of the remeasurement is recognized in profit or loss. Lease liabilities are presented on a separate line in the consolidated balance sheets.

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

o. Borrowing costs

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

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

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

p. Government grants

Government grants are not recognized until there is reasonable assurance that the Group will comply with the conditions attached to them and that the grants will be received.

Government grants related to income are recognized in other income on a systematic basis over the periods in which the Group recognizes as expenses the related costs that the grants intend to compensate. Specifically, government grants whose primary condition is that the Group should purchase, construct or otherwise acquire non-current assets are recognized as deferred revenue and transferred to profit or loss on a systematic and rational basis over the useful lives of the related assets.

Government grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the Group with no future related costs are recognized in profit or loss in the period in which they become receivable.

q. Employee benefits
1) Short-term employee benefits

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

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2) Retirement benefits

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

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

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

r. Taxation

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

1) Current tax

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

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

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

2) Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized.

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

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

24 -

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

3) Current and deferred taxes for the year

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

5. MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

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

The estimates and underlying assumptions are reviewed on an ongoing basis.

Key Sources of estimation Uncertainty

a. Write-down of inventories

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

b. Income taxes

For the purpose of expanding the Group’s operation scale continuously and supporting the capital needs of overseas reinvestment companies, the Company’s management resolved of the board of directors in previous years that the unappropriated retained earnings of overseas subsidiaries will be used for permanent investment. Therefore, no deferred tax liabilities were recognized on the subsidiaries’ unappropriated earnings (refer to Note 27). If the retained earnings of overseas subsidiaries will be appropriated in the future, recognition of material deferred tax liabilities may arise, which would be recognized in profit or loss for the period in which such appropriation takes place. The Group evaluated the optimization of its working capital and tax planning. The board of directors of Nanomag International Co., Ltd. (the Company’s subsidiary) approved the appropriation of earnings on July 3, 2023 and October 24, 2022, respectively, which has been approved by the government. The remaining unappropriated retained earnings of other overseas subsidiaries will still be used for permanent investment.

25 -

6. CASH AND CASH EQUIVALENTS

Cash on hand Demand deposits in banks Cash equivalents (investments with original maturities of less than 3 months) Time deposits Repurchase agreements		December 31	December 31
		2023 $ 1,360 1,149,791 41,217,715 94,000 $ 42,462,866	2022 $ 1,969 10,812,504 46,595,647 136,800 $ 57,546,920

The interest rate intervals of time deposits and repurchase agreements were as follows:

Time deposits Repurchase agreements 7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH	December 31
	2023 2022 1.85%-6.49% 0.93%-5.20% 1.08%-1.10% 1.05% PROFIT OR LOSS

Financial assets at FVTPL-current Financial assets mandatorily classified as at FVTPL Non-derivative financial assets Mutual funds Domestic listed shares Financial assets at FVTPL-non-current Financial assets mandatorily at FVTPL Non-derivative financial assets Private equity funds Private equity securities Limited partnerships Unlisted foreign shares		December 31	December 31
		2023 $ 302,715 75,835 $ 378,550 $ 1,210,933 - 256,082 49,134 $ 1,516,149	2022 $ - 189,736 $ 189,736 $ 1,026,794 22,309 249,141 - $ 1,298,244

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8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME (FVTOCI)

Current Investments in equity instruments at fair value through other comprehensive income (FVTOCI) Non-current Investments in equity instruments at FVTOCI Investments in debt instruments at FVTOCI a. Investments in equity instruments Current Domestic investments Listed shares Non-current Domestic investments Unlisted shares Ordinary shares Foreign investments Limited partnerships Listed shares		December 31	December 31
		2023 2022 $ 3,900,676 $ 143,609 $ 1,846,392 $ 1,342,874 83,916,262 2,166,827 $ 85,762,654 $ 3,509,701 December 31
		2023 $ 3,900,676 $ 57,348 1,739,485 49,559 $ 1,846,392	2022 $ 143,609 $ 57,330 1,285,544 - $ 1,342,874

These investments in equity instruments are not held for trading. Instead, they are held for medium- to long-term strategic purposes. Accordingly, the management elected to designate these investments in equity instruments as at FVTOCI as they believe that recognizing short-term fluctuations in these investments’ fair value in profit or loss would not be consistent with the Group’s strategy of holding these investments for long-term purposes.

The Group invested US$12,579 thousand and US$13,520 thousand in China Renewable Energy Fund, L.P. in 2023 and 2022, respectively. The Group accounted for 23.51% of the total investment. In addition, the Group only holds 1 out of 5 seats in the Operation Committee. Therefore, the Group’s management considered that it has no significant influence over the investee and classified the investment as financial assets at FVTOCI - non-current.

The Group was elected as 2 directors of the boards of Pacific Hospital Supply Co., Ltd. and Bioteque Corporation in June 2022, respectively. Despite holding less than a 20% stake in each of the aforementioned companies, the Group considers itself to have a major influence. Starting from June 15, 2022, the Group changed the accounting treatment for the two investees using the equity method, based on the closing prices on the date, from financial assets at FVTOCI as previously classified. Refer to

27 -

Note 14.

b. Investments in debt instrument

Non-current Corporate bonds Government bonds		December 31	December 31
		2023 $ 2,243,478 81,672,784 $ 83,916,262	2022 $ 1,853,561 313,266 $ 2,166,827

Refer to Note 10 for information relating to the credit risk management and impairment of investments in debt instruments at FVTOCI.

9. FINANCIAL ASSETS AT AMORTIZED COST

Current Domestic investments Time deposits with original maturity of more than 3 months (a) Restricted bank deposits (a and b) Refundable deposits Non-current Domestic investments Time deposits (a) Time deposits with original maturity of more than 1 year (a) Refundable deposits a. The interest rates intervals of time deposits: Time deposits		December 31
		2023 2022 $ 51,487,172 $ 102,265,050 15,487,096 14,687,274 1,195 1,212 $ 66,975,463 $ 116,953,536 $ 25,615,113 $ 25,437,338 - 282,072 831 1,694 $ 25,615,944 $ 25,721,104 December 31
		2023 2022 1.22%-6.49% 0.93%-5.65%

b. Refer to Note 32 for information on financial assets measured at amortized cost - current pledges as security.

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10. CREDIT RISK MANAGEMENT FOR INVESTMENTS IN DEBT INSTRUMENTS

Investments in debt instruments classified as at FVTOCI as follows:

December 31, 2023 Gross carrying amount Less: Allowance for impairment loss December 31, 2022 Gross carrying amount Less: Allowance for impairment loss	At FVTOCI $ 83,949,982 (33,720) $ 83,916,262 At FVTOCI $ 2,216,987 (50,160) $ 2,166,827

The Group invests in debt instruments with credit rating information supplied by independent rating agencies. The Group’s exposure and the external credit ratings are continuously monitored. The Group reviews changes in bond yields and other publicly available information and makes an assessment whether there has been a significant increase in credit risk since the last period to the reporting date.

In determining the expected credit losses for debt instrument investments, the Group considers the historical probability of default and loss given default of each credit rating supplied by external rating agencies, the current financial condition of debtors, and the future prospects of the industries.

The credit risk rating mechanism the Group currently adopts is as follows:

		Basis for Recognizing
		Expected Credit Losses
Category	Description	(ECLs)
Performing	The counterparty has a low risk of default and a strong	12m ECLs
	capacity to meet contractual cash flows
Doubtful	There has been a significant increase in credit risk since	Lifetime ECLs - not credit
	initial recognition	impaired
In default	There is evidence indicating the asset is credit impaired	Lifetime ECLs - credit
		impaired
Write-off	There is evidence indicating that the debtor is in severe	Amount is written off
	financial difficulty and the Group has no realistic
	prospect of recovery

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The gross carrying amounts of debt instrument investments classified by credit category and the corresponding expected loss rates were shown below:

December 31, 2023

Category Expected Loss Rate Performing 0% Doubtful 100% December 31, 2022 Category Expected Loss Rate Performing 0% Doubtful 100%	Gross Carrying Amount
	At FVTOCI $ 83,916,262 33,720 Gross Carrying Amount
	At FVTOCI $ 2,166,827 50,160

In the first quarter of 2022, the conflict between Russia and Ukraine and the related international sanctions resulted in greater financial uncertainty for the debtor. The Group raised the expected credit loss rate considering that if the conflict continues, the probability of default will increase.

The movements of the allowance for impairment loss of investment in debt instruments at FVTOCI were as follows:

Balance at January 1, 2023 Derecognition Change in exchange rates Balance at December 31, 2023 Balance at January 1, 2022 Transfers From performing to doubtful Derecognition Change in exchange rates or others Balance at December 31, 2022	Credit Rating
	Doubtful (Lifetime ECLs - Not Credit Impaired) $ 50,160 (16,956) 516 $ 33,720 Credit Rating
	Doubtful (Lifetime ECLs - Not Credit Impaired) $ - 76,671 (33,612) 7,101 $ 50,160

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For the year ended December 31, 2023 and 2022, the Group sold the investment in corporate bonds measured at FVTOCI by NT$17,256 thousand and NT$33,049 thousand, respectively, and derecognized the loss allowance by NT$16,956 thousand and NT$33,612 thousand corresponding to its credit rating, respectively.

11. TRADE RECEIVABLES AND OTHER RECEIVABLES

Trade receivables At amortized cost Gross carrying amount Less: Allowance for impairment loss Other receivables Interest receivables Others		December 31	December 31
		2023 $ 3,795,702 (8,309) $ 3,787,393 $ 1,599,325 31,678 $ 1,631,003	2022 $ 9,573,233 (8,438) $ 9,564,795 $ 808,723 34,607 $ 843,330

a. Trade receivables

The average credit period of sales of goods is 30 to 180 days. No interest was charged on accounts receivable. In order to minimize credit risk, the management of the Group has delegated a team responsible for determining credit limits, credit approvals and other monitoring procedures to ensure that follow-up action is taken to recover overdue debts. In addition, the Group reviews the recoverable amount of each individual trade debt at the end of the reporting period to ensure that adequate allowance is made for possible irrecoverable amounts. In this regard, the management believes the Group’s credit risk was significantly reduced.

The Group measures the loss allowance for trade receivables at an amount equal to lifetime ECLs. The expected credit losses on trade receivables are estimated using a provision matrix by reference to the past default experience of the debtor and an analysis of the debtor’s current financial position, adjusted for general economic conditions of the industry in which the debtors operate and an assessment of both the current as well as the forecasted direction of economic conditions at the reporting date. As the Group’s historical credit loss experience does not show significantly different loss patterns for different customer segments, the provision for loss allowance based on past due status is not further distinguished according to the Group’s different customer base.

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

The following table details the loss allowance of trade receivables based on the Group’s provision matrix.

31 -

December 31, 2023

Not Past Due Expected credit loss rate 0%-0.225% Gross carrying amount $ 3,572,251 Loss allowance (Lifetime ECLs) (8,023) Amortized cost $ 3,564,228 December 31, 2022 Not Past Due Expected credit loss rate 0%-0.098% Gross carrying amount $ 8,613,580 Loss allowance (Lifetime ECLs) (8,438) Amortized cost $ 8,605,142	Less than 60 Days 0%-6.346% $ 217,923 (210) $ 217,713 Less than 60 Days 0% $ 901,681 - $ 901,681	61 to 120 Days 0%-10.327% $ 5,528 (76) $ 5,452 61 to 120 Days 0% $ 57,972 - $ 57,972	Total $ 3,795,702 (8,309) $ 3,787,393 Total $ 9,573,233 (8,438) $ 9,564,795

The movements of the loss allowance of trade receivables were as follows:

Balance at January 1 Less: Amounts written off Less: Net remeasurement of loss allowance Foreign exchange gains and losses Balance at December 31		For the Year Ended December 31	For the Year Ended December 31
		2023 $ 8,438 (129) - - $ 8,309	2022 $ 57,183 - (51,289) 2,544 $ 8,438

b. Other receivables

The Group analyzed other receivables that were not past due based on the past due status, and the Group did not recognize an allowance for loss on other receivables as of December 31, 2023 and 2022.

12. INVENTORIES

Merchandise Finished goods Work-in-process and semi-finished goods Raw materials and supplies		December 31	December 31
		2023 $ 938 1,136,776 716,775 395,587 $ 2,250,076	2022 $ 4,980 1,999,755 955,454 432,267 $ 3,392,456

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The nature of the cost of goods sold is as follows:

Cost of inventories sold Others		For the Year Ended December 31	For the Year Ended December 31
		2023 $ 13,543,207 (403,284) $ 13,139,923	2022 $ 19,291,698 (338,066) $ 18,953,632

13. SUBSIDIARIES

Subsidiaries included in the consolidated financial statements were as follows:

Investor
Investee
Main Business
Catcher Technology Co., Ltd.
Nanomag International Co.,
Ltd.
Investing activities
Gigamag Co., Ltd.
Investing activities
Ke Yue Co., Ltd.
Investing activities
Yi Sheng Co., Ltd.
Investing activities
Yi De Co., Ltd.
Investing activities
Catcher Medtech Co., Ltd.
Manufacturing, and selling
medical devices
Catcher Holdings
International Inc.
Investing activities
Yi Fa Co., Ltd.
Investing activities
Yi Chuan Co., Ltd.
Investing activities
Yi Zhu Co., Ltd.
Investing activities
Catcher Medtech Co., Ltd.
Ren He Medtech Co., Ltd.
Selling medical devices
Ren Yi Medtech Co., Ltd.
Selling medical devices
Nanomag International Co.,
Ltd.
Castmate International Co.,
Ltd.
Investing activities
Stella International Co., Ltd. Investing activities
Uranus International Co.,
Ltd.
Investing activities
Aquila International Co.,
Ltd.
Investing activities
Norma International Co.,
Ltd.
Investing activities
Next Level Ltd.
Investing activities
Cor Ventures Pte. Ltd.
Investing activities
Castmate International Co.,
Ltd.
Cygnus International Co.,
Ltd.
Investing activities
Stella International Co., Ltd.
Lyra International Co., Ltd. Investing activities
Uranus International Co., Ltd.
Catcher Technology
(Suqian) Co., Ltd.
Manufacturing, selling and
developing varied metal
products
Vito Technology (Suqian)
Co., Ltd.
Manufacturing, selling and
developing varied metal
products
Aquila International Co., Ltd.
Cepheus International Co.,
Ltd.
Investing activities
Cepheus International Co., Ltd. Aquila Technology (Suqian)
Co., Ltd.
Manufacturing and selling molds
and electronic parts
Norma International Co., Ltd.
Arcadia Technology
(Suqian) Co., Ltd.
Manufacturing, selling and
developing varied metal
products
Envio Technology (Suqian)
Co., Ltd.
Manufacturing, selling and
developing varied metal
products
Gigamag Co., Ltd.
Neat Co., Ltd.
International trade
Catcher Holdings International
Inc.
Catcher Ventures Inc.
Investing activities

% of Ownership
December 31
2023
2022
Remark
100
100
100
100
100
100
100
100
100
100
100
100
-
-
Note 3
100
-
Note 7
100
-
Note 7
100
-
Note 7
100
-
Note 6
100
-
Note 6
100
100
100
100
100
100
75
75
100
100
100
100
100
100
-
100
Note 4
100
100
100
100
100
100
-
100
Note 5
-
-
Note 1
100
100
100
100
-
-
Note 2
-
-
Note 3

Note 1: Aquila Technology (Suqian) Co., Ltd. was liquidated and canceled in February 2022.

Note 2: Neat Co., Ltd. was liquidated and canceled in May 2022.

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Note 3: The Company established Catcher Holdings International Inc. and Catcher Ventures Inc. in June 2022. As of December 31, 2023, the investment funds have not been remitted.
Note 4: Cygnus International Co., Ltd. was liquidated and canceled in June 2023.
Note 5: Cepheus International Co., Ltd. was liquidated and canceled in July 2023.
Note 6: The Company established Ren He Medtech Co., Ltd. and Ren Yi Medtech Co., Ltd. in September 2023.
Note 7: The Company established Yi Fa Co., Ltd., Yi Chuan Co., Ltd. and Yi Zhu Co., Ltd. in November 2023.

14. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

Investments in associates Associates that are not individually material Pacific Hospital Supply Co. Ltd Bioteque Corporation SMART ECARE INC.		December 31	December 31
		2023 $ 1,276,013 1,650,947 3,710 $ 2,930,670	2022 $ 998,597 1,179,813 2,769 $ 2,181,179

Aggregate information of associates that are not individually material was as follows:

The Group’s share of: Net profit for the year Other comprehensive income Total comprehensive income		For the Year Ended December 31	For the Year Ended December 31
		2023 $ 104,565 1,477 $ 106,042	2022 $ 74,379 2,459 $ 76,838

The Group’s investments in Pacific Hospital Supply Co., Ltd. and Bioteque Corporation, which had previously been recognized as financial assets at fair value through other comprehensive income, became qualified for the equity method of accounting and were therefore reclassified as investments accounted for using the equity method in June 2022. The Group completed the acquisition price allocation report on June 2023. Considering that the depreciation and amortization amounts of the fair value of identifiable assets were not significant, the financial statements for the previous period were not restated.

15. PROPERTY, PLANT AND EQUIPMENT

All property, plant and equipment are used by the Group.

See Table 11 for the statements of changes in property, plant and equipment for the years ended December 31, 2023 and 2022.

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The above items of property, plant and equipment are depreciated on a straight-line basis over their estimated useful lives as follows:

Buildings Main buildings Mechanical and electrical power equipment Engineering systems Machinery and equipment Transportation equipment Furniture and fixtures Miscellaneous equipment All of the Group’s property, plant and equipment were not pledged LEASE ARRANGEMENTS a. Right-of-use assets Carrying amount Land Buildings Additions to right-of-use assets Depreciation charge for right-of-use assets Land Buildings Income from the subleasing of right-of-use assets (recognized as operating revenue)	20 - 50 years 5 years 2 - 5 years 2 - 10 years 5 years 2 - 5 years 2 - 15 years as collateral. December 31	20 - 50 years 5 years 2 - 5 years 2 - 10 years 5 years 2 - 5 years 2 - 15 years as collateral. December 31	20 - 50 years 5 years 2 - 5 years 2 - 10 years 5 years 2 - 5 years 2 - 15 years as collateral. December 31
		2023 2022 $ 968,308 $ 996,995 - 2,337 $ 968,308 $ 999,332 For the Year Ended December 31
		2023 $ 11,465 $ 26,588 2,338 $ 28,926 $ -	2022 $ 24,413 $ 26,238 9,672 $ 35,910 $ 965

All of the Group’s property, plant and equipment were not pledged as collateral.

16. LEASE ARRANGEMENTS

a. Right-of-use assets

Except for the additions and recognition of depreciation, the Group’s right-of-use assets are not subleased, and no impairment assessment was performed during the year 2023 and 2022.

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b. Lease liabilities

Carrying amount Current Non-current		December 31	December 31
		2023 $ 3,998 $ 133,357	2022 $ 5,923 $ 126,297

Range of discount rates for lease liabilities was as follows:

Land Buildings	December 31
	2023 2022 0.71%-0.95% 0.71%-0.95% 0.71%-0.95% 0.71%-0.95%

c. Material lease-in activities and terms

The Group leases certain land and buildings for the use of plants and office spaces with lease terms of 3 to 50 years.

The lease contract for land located in Taiwan specifies that lease payments will be adjusted every year on the basis of changes in the announced land value prices. The lease contract for land located in China specifies that lease payments will be adjusted every year based on the lease contract. The Group does not have bargain purchase options to acquire the leasehold land and buildings at the end of the lease terms. In addition, the Group is prohibited from subleasing or transferring all or any portion of the underlying assets without the lessor’s consent.

d. Other lease information

Expenses relating to short-term leases Expenses relating to low-value asset leases Expenses relating to variable lease payments not included in the measurement of lease liabilities Total cash outflow for leases		For the Year Ended December 31	For the Year Ended December 31
		2023 $ 7,167 $ 415 $ 11,919 $ 28,260	2022 $ 5,472 $ 591 $ 9,206 $ 30,471

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

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17. INVESTMENT PROPERTIES

Cost Balance at January 1, 2022 Additions Transfer from Property, Plant, and Equipment Balance at December 31, 2022 Accumulated depreciation Balance at January 1, 2022 Depreciation Transfer from Property, Plant, and Equipment Balance at December 31, 2022 Carrying amount at December 31, 2022 Cost Balance at January 1, 2023 Additions Transferred to Property, Plant, and Equipment Balance at December 31, 2023 Accumulated depreciation Balance at January 1, 2023 Depreciation Transferred to Property, Plant, and Equipment Balance at December 31, 2023 Carrying amount at December 31, 2023	Land $ 203,363 - 712,166 $ 915,529 $ - - - $ - $ 915,529 $ 915,529 326,300 (133,135) $ 1,108,694 $ - - - $ - $ 1,108,694	Buildings $ 155,287 245 25,929 $ 181,461 $ 137,085 5,938 691 $ 143,714 $ 37,747 $ 181,461 138,732 (108,962) $ 211,231 $ 143,714 7,954 (628) $ 151,040 $ 60,191	Total $ 358,650 245 738,095 $ 1,096,990 $ 137,085 5,938 691 $ 143,714 $ 953,276 $ 1,096,990 465,032 (242,097) $ 1,319,925 $ 143,714 7,954 (628) $ 151,040 $ 1,168,885

The investment properties are depreciated by the straight-line method over their estimated useful lives as	The investment properties are depreciated by the straight-line method over their estimated useful lives as
follows:
Main buildings	25 - 50 years
Elevators	15 years
Heat dissipation system	5 years

Due to the impact of the COVID-19 pandemic on the market economy in 2021, the Group agreed to defer the rental collection for the period between June 5, 2021 and December 5, 2021 to the period between December 5, 2021 and June 5, 2022.

37 -

The determination of fair value was performed by independent qualified professional valuers. The fair value was measured using Level 3 inputs or was arrived at by reference to market evidence of transaction prices for similar properties. The fair value was as follows:

Fair value		December 31	December 31
		2023 $ 2,402,379	2022 $ 1,625,279

All of the Group’s investment properties were not pledged as collateral.

The investment properties are leased out from February 2017 to August 2027. The lease contracts contain market review clauses in the event that the lessees exercise their options to extend. The lessees do not have bargain purchase options to acquire the investment properties at the expiry of the lease periods. The maturity analysis of lease payments receivable under operating leases of investment properties was as follows:

Year 1 Year 2 Year 3 Year 4 Year 5		December 31	December 31
		2023 $ 31,389 29,481 21,003 5,662 - $ 87,535	2022 $ 28,994 29,174 27,266 21,480 5,862 $ 112,776

18. INTANGIBLE ASSETS

Cost Balance at January 1, 2022 Additions Effect of foreign currency exchange differences Balance at December 31, 2022 Accumulated amortization Balance at January 1, 2022 Amortization expense Effect of foreign currency exchange differences Balance at December 31, 2022 Carrying amount at December 31, 2022	Computer Software $ 360,406 1,353 2,286 $ 364,045 $ 325,899 26,376 1,718 $ 353,993 $ 10,052	Technical Skill $ 29,700 - - $ 29,700 $ 6,500 10,545 - $ 17,045 $ 12,655	Total $ 390,106 1,353 2,286 $ 393,745 $ 332,399 36,921 1,718 $ 371,038 $ 22,707 (Continued)

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Cost Balance at January 1, 2023 Additions Effect of foreign currency exchange differences Balance at December 31, 2023 Accumulated amortization Balance at January 1, 2023 Amortization expense Effect of foreign currency exchange differences Balance at December 31, 2023 Carrying amount at December 31, 2023	Computer Software $ 364,045 9,651 (2,524) $ 371,172 $ 353,993 11,106 (2,516) $ 362,583 $ 8,589	Technical Skill $ 29,700 - - $ 29,700 $ 17,045 10,546 - $ 27,591 $ 2,109	Total $ 393,745 9,651 (2,524) $ 400,872 $ 371,038 21,652 (2,516) $ 390,174 $ 10,698 (Concluded)

The above intangible assets are amortized on a straight-line basis over their estimated useful lives as	The above intangible assets are amortized on a straight-line basis over their estimated useful lives as
follows:
Computer software	2-10 years
Technical Skill	5 years

19. OTHER ASSETS

Current Net Input VAT Office supplies Prepaid expenses Others Non-current Prepaid equipment Others		December 31	December 31
		2023 $ 85,046 66,108 68,113 2,153 $ 221,420 $ 108,692 3,876 $ 112,568	2022 $ 68,507 139,116 88,496 13,266 $ 309,385 $ 99,896 2,685 $ 102,581

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20. SHORT-TERM BORROWINGS

Bank unsecured loans Bank secured loans(Note 32)		December 31	December 31
		2023 $ 63,875,298 13,542,181 $ 77,417,479	2022 $ 43,696,000 13,000,000 $ 56,696,000

The range of interest rates of short-term borrowings was as follows:

Bank unsecured loans Bank secured loans	December 31
	2023 2022 1.50%-3.02% 1.30%-1.98% 1.53%-2.90% 1.30%-1.56%

21. TRADE PAYABLES

Trade payables resulted from operating activities.

The Group has financial risk management policies in place to ensure that all payables are paid within the pre-agreed credit terms.

22. OTHER LIABILITIES

Current Other payables Payables for employees’ compensation Payables for technical service fees Payables for salaries and bonuses Payables for office supplies Payables for annual leave Payables for taxes Payables for purchases of equipment Payables for utilities Payables for maintenance Payables for interest Payables for meals Payables for shipping expenses and warehousing Payables for professional service fees Others		December 31	December 31
		2023 $ 1,533,506 1,280,514 775,764 128,984 106,654 61,546 58,894 51,860 29,242 28,716 25,055 23,395 17,909 243,283 $ 4,365,322	2022 $ 2,067,335 1,514,632 957,089 131,403 126,278 63,620 59,628 61,780 31,899 23,099 32,252 36,335 15,705 565,540 $ 5,686,595

(Continued)

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Other liabilities Advance receipts Payables for value-added tax Guarantee deposits received Others Non-current Other liabilities Guarantee deposits received		December 31 2023 2022 $ 794,151 $ 808,763 62,479 6,247 14,651 21,920 9,766 19,754 $ 881,047 $ 856,684 $ 12,300 $ 10,036 (Concluded)
		2023 $ 794,151 62,479 14,651 9,766 $ 881,047 $ 12,300

23. RETIREMENT BENEFIT PLANS

a. Defined contribution plan

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

The employees of the Group’s subsidiaries in China are members of a state-managed retirement benefit plan operated by the government of mainland China. The subsidiaries are required to contribute a specified percentage of payroll costs to the retirement benefit scheme to fund the benefits. The only obligation of the Group with respect to the retirement benefit plan is to make the specified contributions.

b. Defined benefit plans

The defined benefit plan adopted by the Group in accordance with the Labor Standards Act is operated by the ROC government. Pension benefits are calculated on the basis of the length of service and average monthly salaries of the six months before retirement. The Group contributes amounts equal to 2% of total monthly salaries and wages to a pension fund administered by the pension fund monitoring committee. Pension contributions are deposited in the Bank of Taiwan in the committee’s name. Before the end of each year, the Group assesses the balance in the pension fund. If the amount of the balance in the pension fund is inadequate to pay retirement benefits for employees who conform to retirement requirements in the next year, the Group is required to fund the difference in one appropriation that should be made before the end of March of the next year. The pension fund is managed by the Bureau of Labor Funds, Ministry of Labor (the “Bureau”); the Group has no right to influence the investment policy and strategy.

41 -

The amounts included in the consolidated balance sheets in respect of the Group’s defined benefit plans were as follows:

Present value of defined benefit obligation Fair value of plan assets Net defined benefit liabilities		December 31	December 31
		2023 $ 75,556 (69,013) $ 6,543	2022 $ 84,953 (78,384) $ 6,569

Movements in net defined benefit liabilities were as follows:

Present Value of
the Defined
Benefit
Obligation
Fair Value of the
Plan Assets
Balance at January 1, 2022
$ 80,463
$ (73,885)

Service cost
Current service cost
2,162
-
Net interest expense (income)

603

(562)

Recognized in profit or loss

2,765

(562)

Remeasurement
Return on plan assets (excluding
amounts included in net interest)
-
(5,570)
Actuarial gain - changes in financial
assumptions
(4,508)
-
Actuarial loss - experience adjustments
10,078

-

Recognized in other comprehensive
income
5,570

(5,570)

Contributions from the employer
-
(2,212)
Benefits paid

(3,845)

3,845

Balance at December 31, 2022

84,953

(78,384)

Service cost
Current service cost
1,898
-
Net interest expense (income)

1,189

(1,113)

Recognized in profit or loss

3,087

(1,113)

Remeasurement
Return on plan assets (excluding
amounts included in net interest)
-
(246)
Actuarial loss - changes in financial
assumptions
573
-
Actuarial gain - experience
adjustments
(327)

-

Recognized in other comprehensive
income
246

(246)

Contributions from the employer
-
(2,000)
Benefits paid

(12,730)

12,730

Balance at December 31, 2023
$ 75,556
$ (69,013)

Net Defined
Benefit
Liabilities
$ 6,578

2,162

41

2,203

(5,570)

(4,508)

10,078
-

(2,212)

-

6,569

1,898

76

1,974

(246)

573
(327)

-

(2,000)

-
$ 6,543

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

Operating costs Selling and marketing expenses General and administrative expenses Research and development expenses		For the Year Ended December 31	For the Year Ended December 31
		2023 $ 1,229 106 406 233 $ 1,974	2022 $ 1,371 105 487 240 $ 2,203

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

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

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

Discount rate Expected rate of salary increase	December 31
	2023 2022 1.30% 1.40% 2% 2%

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

Discount rate 0.25% increase 0.25% decrease Expected rate of salary increase 0.25% increase 0.25% decrease		December 31	December 31
		2023 $ (1,462) $ 1,509 $ 1,452 $ (1,414)	2022 $ (1,769) $ 1,825 $ 1,748 $ (1,703)

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

Expected contributions to the plan within one year Average duration of the defined benefit obligation		December 31	December 31
		2023 $ 2,000 9 years	2022 $ 2,212 9 years

24. EQUITY

a. Share capital
1) Ordinary shares

Number of shares authorized (in thousands) Shares authorized Number of shares issued and fully paid (in thousands) Shares issued		December 31	December 31
		2023 1,000,000 $ 10,000,000 680,364 $ 6,803,641	2022 1,000,000 $ 10,000,000 714,467 $ 7,144,671

Fully paid ordinary shares, which have a par value of NT$10, carry one vote per share and carry a right to dividends.

On February 24, 2022, the Company’s board of directors approved a capital reduction to cancel the Company’s 31,865 thousand treasury shares, and the record date was February 28, 2022. The Company’s paid-in capital was NT$7,297,531 thousand after the capital reduction.

On August 8, 2022, the board of directors approved a capital reduction to cancel the Company’s 15,286 thousand treasury shares, and the record date was August 12, 2022. The Company’s paid-in capital was NT$7,144,671 thousand after the capital reduction.

On April 18, 2023, the board of directors approved a capital reduction to cancel the Company’s 34,103 thousand treasury shares, and the record date was April 20, 2023. The Company’s paid-in capital was NT$6,803,641 thousand after the capital reduction.

A total of 23,000 thousand shares of the Company’s authorized shares were reserved for the issuance of employee share options.

2) Global depositary receipts

In June 2011, the Company increased its capital by listing its shares in the form of Global Depositary Receipts (GDRs). Each GDR was represented 5 ordinary shares. The Company issued 6,700 thousand units of GDRs, representing 33,500 thousand ordinary shares.

As of December 31, 2023 and 2022, there were 27 thousand units and 21 thousand units of outstanding GDRs, equivalent to 134 thousand ordinary shares and 107 thousand ordinary shares, respectively.

44 -

b. Capital surplus

May be used to offset a deficit, distributed as cash dividends, or transferred to share capital (Note) Arising from issuance of ordinary shares Arising from conversion of bonds May only be used to offset a deficit Overdue claimed dividends of shareholders Changes in net equity of associates accounted for using the equity method		December 31	December 31
		2023 $ 6,588,483 11,282,157 6,087 353 $ 17,877,080	2022 $ 6,918,728 11,847,671 5,135 - $ 18,771,534

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

Under the dividends policy as set forth in the amended Articles, the proposal for profit distribution or offsetting of losses can be made at the end of each six months of the fiscal year, when the Company makes a profit in the first half of the fiscal year, the profit should be appropriated as follows:

1) Pay taxes;
2) Offset against deficit, if any;
3) Estimate compensation of employees and remuneration of directors;
4) Appropriate 10% of the remaining profit as legal reserve, until the accumulated amount equals the Company’s paid-in capital;
5) Reverse a special reserve in accordance with the laws or operating needs; and
6) Any remaining profit together with any undistributed retained earnings shall be used by the Company’s board of directors as the basis for proposing a distribution plan, which should be resolved in the shareholders’ meeting for the distribution of dividends and bonuses to shareholders in issuance of ordinary share and resolved in the Company’s board of directors for the distribution of dividends and bonus in cash.

When the Company makes a profit in a fiscal year, the profit should be appropriated as follows:

1) Pay taxes;
2) Offset against deficit, if any;
3) Appropriate 10% of the remaining profit as legal reserve, until the accumulated amount equals the Company’s paid-in capital;
4) Reverse a special reserve in accordance with the laws or operating needs; and
45 -
5) Any remaining profit together with any undistributed retained earnings shall be used by the Company’s board of directors as the basis for proposing a distribution plan, which should be resolved in the shareholders’ meeting for the distribution of dividends and bonuses to shareholders in issuance of ordinary share.

The Company is still in the growing stage and is continuing to expand its operating scale with due consideration of the viability of the economic situation. The board of directors shall be focusing on growing dividends in a stable manner when proposing the appropriation of annual earnings. However, cash dividends shall not be less than 10% of the total dividends, and cash dividends shall be distributed although the dividends per share is less than NT$0.5.

For the policies on the distribution of the compensation of employees and remuneration of directors after the amendment, refer to “Compensation of employees and remuneration of directors” in Note 26(h).

The legal reserve may be used to offset deficit. If the Company has no deficit and the legal reserve has exceeded 25% of the Company’s paid-in capital, the excess may be transferred to capital or distributed in cash.

The appropriations of earnings for 2022 and 2021 were as follows:

Legal reserve Special reserve (reversal) Cash dividends Cash dividends per share (NT$)		Appropriation of Earnings	Appropriation of Earnings
		For the Year Ended December 31
		2022 $ 523,797 $ (14,716,983) $ 6,803,641 $ 10	2021 $ 857,386 $ 2,567,156 $ 7,297,531 $ 10

The Company’s board of directors resolved to distribute cash dividends on April 18, 2023 and April 6, 2022, respectively; the retained earnings were resolved by the shareholders in their meetings on May 30, 2023 and May 27, 2022, respectively.

The appropriation of the first half earnings in 2023 has been approved by the Company’s board of directors in their meeting. The appropriation and cash dividends per share were as follows:

	For	the Six-month
	Ended June 30,
		2023
Date of Board Resolution	November 10, 2023
Legal reserve Special reserve (reversal)	$ $	23,665 (1,698,580)
Cash dividends	$	3,401,820
Cash dividends per share (NT$)	$	5

46 -

d. Other equity items

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

Balance at January 1 Exchange differences on translating the financial statements of foreign operations Shares from associates accounted for using the equity method Balance at December 31		For the Year Ended December 31	For the Year Ended December 31
		2023 $ (2,001,758) (744,252) 1,477 $ (2,744,533)	2022 $ (16,859,133) 14,854,916 2,459 $ (2,001,758)

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

Balance at January 1 Recognized for the year Unrealized gain (loss) - equity instruments Unrealized gain (loss) - debt instruments Reclassification adjustments Disposal of investments in debt instruments Cumulative unrealized gain (loss) of equity instruments transferred to retained earnings due to disposal Balance at December 31		For the Year Ended December 31	For the Year Ended December 31
		2023 $ (242,726) 223,469 91,330 2,872 224 $ 75,169	2022 $ (102,333) (31,564) (255,871) 175,820 (28,778) $ (242,726)

e. Non-controlling interests

Balance as of January 1 Share of profit (loss) for the year Other comprehensive income (loss) during the year Exchange differences on translating the financial statements of foreign operations Distribution of earnings of subsidiaries Balance as of December 31		For the Year Ended December 31	For the Year Ended December 31
		2023 $ 11,043 352 (4) - $ 11,391	2022 $ 49,589 (5,941) 4,552 (37,157) $ 11,043

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f. Treasury shares

	Shares Cancelled
	(In Thousands of
Purpose of Buy-back	Shares)
Number of shares at January 1, 2022	21,567
Increase during the year	25,584
Cancel during the year (Note 24)	47,151
Number of shares at December 31, 2022	-
Number of shares at January 1, 2023	-
Increase during the year	34,103
Cancel during the year (Note 24)	34,103
Number of shares at December 31, 2023	-

To maintain the Company’s credit and shareholders’ equity, on December 8, 2021, the Company’s board of directors resolved to buy back 25,000 thousand shares from December 9, 2021 to February 8, 2022, at a price ranging from NT$106.8 per share to NT$238.5 per share. The Company will continue to buy back shares when the market price falls below the lower limit of the price range. At the end of the exercise period, a total of 16,332 thousand shares were repurchased at a total cost of NT$2,560,844 thousand.

To maintain the Company’s credit and shareholders’ equity, on April 6, 2022, the Company’s board of directors resolved to buy back 25,000 thousand shares from April 7, 2022 to June 6, 2022 at a price ranging from NT$102.2 per share to NT$220.5 per share. The Company will continue to buy back shares when the market price falls below the lower limit of the price range. At the end of the exercise period, a total of 15,286 thousand shares were repurchased at a total cost of NT$2,307,209 thousand.

To maintain the Company’s credit and shareholders’ equity, on January 31, 2023, the Company’s board of directors resolved to buy back 36,000 thousand shares from February 1, 2023 to March 31, 2023 at a price ranging from NT$124.6 per share to NT$262.5 per share. The Company will continue to buy back shares when the market price falls below the lower limit of the price range. At the end of the exercise period, a total of 34,103 thousand shares were repurchased at a total cost of NT$6,366,835 thousand.

According to the Securities and Exchange Act, treasury shares should not exceed 10% of the Company’s issued and outstanding shares and the total amount of treasury shares should not exceed the total retained earnings and realized additional paid-in capital.

Under the Securities and Exchange Act, the Company shall neither pledge treasury shares nor exercise shareholders’ rights on these shares, such as the rights to dividends and to vote.

25. REVENUE

Revenue from contracts with customers Revenue from the sale of metal casing Rental income Revenue from the rendering of services		For the Year Ended December 31	For the Year Ended December 31
		2023 $ 18,035,445 34,629 3,810 $ 18,073,884	2022 $ 27,801,362 19,167 - $ 27,820,529

48 -

a. Contract information

The Group sells metal casing to the customers. All goods are sold at respective fixed amounts as agreed in the contracts.

b. Contract balances

Trade receivables Gross carrying amount Less: Allowance for impairment loss Contract liabilities - current Sale of goods	December 31, 2023 $ 3,795,702 (8,309) $ 3,787,393 $ 12,264	December 31, 2022 $ 9,573,233 (8,438) $ 9,564,795 $ 42,803	January 1, 2022 $ 9,722,596 (57,183) $ 9,665,413 $ 32,742

26. NET PROFIT

a. Interest income

Bank deposits Investments in debt instruments at FVTOCI Repurchase agreements		For the Year Ended December 31	For the Year Ended December 31
		2023 $ 8,118,161 2,282,039 357 $ 10,400,557	2022 $ 4,177,540 132,125 3,573 $ 4,313,238

b. Other income

Government grants Recycling income Dividend income Others		For the Year Ended December 31	For the Year Ended December 31
		2023 $ 626,027 52,070 69,627 6,040 $ 753,764	2022 $ 928,384 50,251 102,502 7,236 $ 1,088,373

49 -

c. Other gains and losses

Liquidation of subsidiary losses Fair value changes of financial assets mandatorily classified as at FVTPL Loss on disposal of investment in debt instruments at FVTOCI Others d. Interest expense Interest on bank loans Interest on lease liabilities e. Depreciation and amortization An analysis of depreciation by function Operating costs Operating expenses An analysis of amortization by function Operating costs Operating expenses f. Operating expenses directly related to investment properties Direct operating expenses from investment properties generating rental income		For the Year Ended December 31	For the Year Ended December 31
		2023 2022 $ - $ (9,883) 45,461 (1,207,127) (2,872) (175,820) 99,894 71,275 $ 142,483 $ (1,321,555) For the Year Ended December 31
		2023 2022 $ 1,190,249 $ 703,083 964 980 $ 1,191,213 $ 704,063 For the Year Ended December 31
		2023 2022 $ 2,414,607 $ 3,001,868 340,720 404,175 $ 2,755,327 $ 3,406,043 $ 2,816 $ 12,859 21,693 31,529 $ 24,509 $ 44,388 For the Year Ended December 31
		2023 $ 12,038	2022 $ 9,001

50 -

g. Employee benefits expense

Short-term employee benefits Post-employment benefits Defined contribution plans Defined benefit plans (Note 23) An analysis of employee benefits expense by function Operating costs Operating expenses		For the Year Ended December 31	For the Year Ended December 31
		2023 $ 6,018,743 422,888 1,974 424,862 $ 6,443,605 $ 4,599,514 1,844,091 $ 6,443,605	2022 $ 8,355,743 523,514 2,203 525,717 $ 8,881,460 $ 6,570,535 2,310,925 $ 8,881,460

h. Compensation of employees and remuneration of directors

The Company accrued the compensation of employees and remuneration of directors at the rates of no less than 1% and no higher than 1%, respectively, of net profit before income tax, compensation of employees, and remuneration of directors. The compensation of employees and remuneration of directors for the years ended December 31, 2023 and 2022, which were approved by the Company’s board of directors on February 22, 2024 and February 23, 2023, respectively, were as follows:

Accrual rate

Compensation of employees Remuneration of directors Amount	For the Year Ended December 31
	2023 2022 1.00% 1.24% 0.16% 0.14%

Compensation of employees Remuneration of directors	For the Year Ended December 31	For the Year Ended December 31
	2023 Cash Shares $ 115,009 $ - 18,200 -	2022
		Cash Shares $ 155,823 $ - 18,200 -

If there are changes in the amounts after the annual consolidated financial statements are authorized for issue, the differences are recorded as a change in the accounting estimate.

There was no difference between the actual amounts of compensation of employees and remuneration of directors paid and the amounts recognized in the consolidated financial statements for the years ended December 31, 2022 and 2021.

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

51 -
i. Gain or loss on foreign currency exchange

Foreign exchange gains Foreign exchange losses		For the Year Ended December 31	For the Year Ended December 31
		2023 $ 8,797,020 (8,341,023) $ 455,997	2022 $ 17,181,297 (8,980,749) $ 8,200,548

27. INCOME TAXES

a. Income tax recognized in profit or loss

Major components of income tax expense are as follows:

Current tax In respect of the current year Income tax on unappropriated earnings Adjustment for prior years Profits repatriated Deferred tax In respect of the current year Adjustment for prior year		For the Year Ended December 31	For the Year Ended December 31
		2023 $ 3,000,831 916,025 66,361 811,339 4,794,556 (1,671,073) 18,019 (1,653,054) $ 3,141,502	2022 $ 2,742,361 - (99,424) 2,152,333 4,795,270 840,147 11,392 851,539 $ 5,646,809

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

Profit before income tax Income tax expense calculated at the statutory rate Unrecognized temporary differences Research and development tax credits from China Non-deductible expenses in determining taxable income Deferred tax effect of earnings of subsidiaries Withholding tax on remittance of earnings Tax-exempt income Additional income tax on unappropriated earnings Unrecognized loss carryforwards Adjustments for prior years’ deferred tax Adjustments for prior years’ tax Capital gains tax on disposal of subsidiaries		For the Year Ended December 31	For the Year Ended December 31
		2023 $ 12,293,047 $ 1,489,396 - (169,084) 2,102 (1,183,022) 1,968,239 (10,818) 916,025 44,284 18,019 66,361 - $ 3,141,502	2022 $ 16,543,047 $ 3,191,856 (54) (211,049) 109,302 170,221 2,589,533 - - (169,558) 11,392 (99,424) 54,590 $ 5,646,809

52 -

The applicable corporate income tax rate used by the Group is 20%; the tax rate applicable to the subsidiaries in China is 25%; the tax amount incurred in other jurisdictions is calculated based on the applicable tax rate of each relevant jurisdiction.

b. Current tax assets and liabilities

Current tax assets Tax refund receivable Current tax liabilities Income tax payable		December 31	December 31
		2023 $ 13,688 $ 5,432,719	2022 $ 52,278 $ 3,183,772

c. Deferred tax assets and liabilities

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

For the year ended December 31, 2023

Opening Balance Deferred tax assets Temporary differences Provisions for losses on inventories $ 137,994 Depreciation differences 2,490,176 Unrealized intercompany profit 190,310 Unrealized sales returns 24 Defined benefit obligation 1,314 Payables for annual leave 36,307 Other payables 26,059 Unrealized foreign exchange losses 163,993 Others 23,911 3,070,088 Tax losses 370,038 $ 3,440,126 Deferred tax liabilities Temporary differences Depreciation differences $ 10,751 Reserves for land value increment tax 12,597 Unappropriated earnings of subsidiaries 6,401,592 $ 6,424,940	Recognized in Profit or Loss $ (26,995 ) (238,541 ) (47,518 ) - (5 ) (4,186 ) 5,627 414,165 (3,697) 98,850 410,815 $ 509,665 $ 39,633 - (1,183,022 ) $ (1,143,389)	Exchange Differences Closing Balance $ (43 ) $ 110,956 (34,380 ) 2,217,255 (2,540 ) 140,252 - 24 - 1,309 (302 ) 31,819 - 31,686 - 578,158 (358) 19,856 (37,623 ) 3,131,315 (11,860) 768,993 $ (49,483) $ 3,900,308 $ - $ 50,384 - 12,597 19,872 5,238,442 $ 19,872 $ 5,301,423

53 -

For the year ended December 31, 2022

Opening Balance Deferred tax assets Temporary differences Provisions for losses on inventories $ 148,602 Depreciation differences 2,700,286 Unrealized intercompany profit 268,967 Unrealized sales returns 24 Defined benefit obligation 1,315 Payables for annual leave 37,538 Financial assets at FVTPL 11 Other payables 15,557 Unrealized foreign exchange losses 182,382 Others 32,631 3,387,313 Tax losses 671,606 $ 4,058,919 Deferred tax liabilities Temporary differences Depreciation differences $ - Reserves for land value increment tax 12,597 Unappropriated earnings of subsidiaries 6,088,162 $ 6,100,759	Recognized in Profit or Loss $ (10,662 ) (254,018 ) (85,809 ) - (1 ) (1,562 ) (11 ) 10,502 (18,389 ) (9,246) (369,196 ) (301,371) $ (670,567) $ 10,751 - 170,221 $ 180,972	Exchange Differences Closing Balance $ 54 $ 137,994 43,908 2,490,176 7,152 190,310 - 24 - 1,314 331 36,307 - - - 26,059 - 163,993 526 23,911 51,971 3,070,088 (197) 370,038 $ 51,774 $ 3,440,126 $ - $ 10,751 - 12,597 143,209 6,401,592 $ 143,209 $ 6,424,940

d. The aggregate amount of temporary difference associated with investments for which deferred tax liabilities have not been recognized

The taxable temporary differences associated with investments in subsidiaries for which no deferred tax liabilities have been recognized amounted to NT$16,135,487 thousand and NT$13,697,746 thousand as of December 31, 2023 and 2022, respectively.

e. Income tax assessments

The corporate income taxes declared by the Company and its subsidiaries Ke Yue, Yi Sheng and Yi De have been approved by the tax collection authority till the end of 2021.

54 -

28. EARNINGS PER SHARE

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

Net profit for the year

Profit for the year attributable to owners of the Company		For the Year Ended December 31	For the Year Ended December 31
		2023 $ 9,151,193	2022 $ 10,902,179

Weighted average number of ordinary shares outstanding (in thousand shares)

Weighted average number of ordinary shares in computation of basic earnings per share Effect of potentially dilutive ordinary shares: Compensation of employees Weighted average number of ordinary shares used in the computation of diluted earnings per share		For the Year Ended December 31	For the Year Ended December 31
		2023 686,480 715 687,195	2022 720,239 1,443 721,682

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

29. CAPITAL MANAGEMENT

The Group manages its capital in a manner to ensure that it has sufficient and necessary financial resources to fund its working capital needs, capital asset purchases, research and development activities, dividend payments, debt service requirements and other business requirements associated with its existing operations over the next 12 months.

30. FINANCIAL INSTRUMENTS

a. Fair value of financial instruments not measured at fair value

The carrying amounts of financial instruments that are not measured at fair value approximate their fair value recognized in the consolidated financial statements; these financial instruments include cash and cash equivalents, financial assets at amortized cost, accounts receivable, other receivables, refundable deposits, short-term loans, accounts payable, other payables, and guarantee deposits received.

55 -
b. Fair value of financial instruments measured at fair value on a recurring basis
1) Fair value hierarchy

December 31, 2023 Financial assets at FVTPL Listed shares and emerging market shares Foreign unlisted shares Mutual funds Private equity fund Limited partnerships Financial assets at FVTOCI Investments in equity instruments at financial assets at FVTOCI Listed shares and emerging market shares Unlisted shares Foreign listed shares Limited partnerships Investments in debt instruments at FVTOCI Bond December 31, 2022 Financial assets at FVTPL Listed shares and emerging market shares Private equity fund Private equity securities Limited partnerships Financial assets at FVTOCI Investments in equity instruments at financial assets at FVTOCI Listed shares and emerging market shares Unlisted shares Limited partnerships Investments in debt instruments at FVTOCI Bond	Level 1 $ 75,835 - 302,715 - - $ 378,550 $ 3,900,676 - 49,559 - - $ 3,950,235 Level 1 $ 189,736 - - - $ 189,736 $ 143,609 - - - $ 143,609	Level 2 $ - - - - - $ - $ - - - - 83,916,262 $ 83,916,262 Level 2 $ - - - - $ - $ - - - 2,166,827 $ 2,166,827	Level 3 $ - 49,134 - 1,210,933 256,082 $ 1,516,149 $ - 57,348 - 1,739,485 - $ 1,796,833 Level 3 $ - 1,026,794 22,309 249,141 $ 1,298,244 $ - 57,330 1,285,544 - $ 1,342,874	Total $ 75,835 49,134 302,715 1,210,933 256,082 $ 1,894,699 $ 3,900,676 57,348 49,559 1,739,485 83,916,262 $ 89,663,330 Total $ 189,736 1,026,794 22,309 249,141 $ 1,487,980 $ 143,609 57,330 1,285,544 2,166,827 $ 3,653,310

There was no transfer between Levels 1 and 2 in the current and prior years.

56 -
2) Reconciliation of Level 3 fair value measurements of financial instruments

Financial assets at FVTOCI

2023

Financial Assets Balance at January 1, 2023 Purchases Recognized in profit or loss (included in other gains and losses) Recognized in other comprehensive income (included in unrealized valuation gain (loss) on financial assets at FVTOCI) Disposal Effects of foreign currency exchange differences Balance at December 31, 2023 2022 Financial Assets Balance at January 1, 2022 Purchases Recognized in profit or loss (included in other gains and losses) Recognized in other comprehensive income (included in unrealized valuation gain (loss) on financial assets at FVTOCI) Effects of foreign currency exchange differences Balance at December 31, 2022		Financial Assets at FVTPL Equity Instruments $ 1,298,244 205,030 47,353 - (33,401) (1,077) $ 1,516,149 Financial Assets at FVTPL Equity Instruments $ 958,795 469,048 (237,642) - 108,043 $ 1,298,244		Financial Assets at FVTOCI Equity Instruments $ 1,342,874 392,509 - 65,835 - (4,385) $ 1,796,833 Financial Assets at FVTOCI Equity Instruments $ 859,146 424,062 - (25,094) 84,760 $ 1,342,874	Total $ 2,641,118 597,539 47,353 65,835 (33,401) (5,462) $ 3,312,982 Total $ 1,817,941 893,110 (237,642) (25,094) 192,803 $ 2,641,118

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

Foreign corporate bonds and government bonds are determined by quoted market prices provided by the independent third party.

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

The fair value of unlisted equity securities in the ROC, limited partnerships and private equity securities were estimated using the market approach and based on the recent net equity. In the market approach, the selling price of comparable companies was used to estimate the fair value of the target asset through comparison, analysis and adjustments.

The fair value of private equity fund was estimated using the assets approach.

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c. Categories of financial instruments

Financial assets Financial assets at FVTPL Mandatorily classified as at FVTPL Financial asset at amortized cost (i) Financial assets at FVTOCI Equity instruments Debt instrument Financial liabilities Financial liabilities measured at amortized cost (ii)	December 31
	2023 2022 $ 1,894,699 $ 1,487,980 140,472,669 210,629,685 5,747,068 1,486,483 83,916,262 2,166,827 83,262,207 65,135,010

Financial liabilities measured at amortized cost (ii)

i) The balances include financial assets at amortized cost, which comprise cash and cash equivalents, trade receivables, other receivables and refundable deposits.
ii) The balance includes financial liabilities measured at amortized cost, which comprise short-term loans, trade payables, other payables, and guarantee deposits received (recognized as other current liabilities and non-current liabilities.)
d. Financial risk management objectives and policies

The Group’s major financial instruments include equity and debt investments, trade receivables, trade payables, borrowings, and lease liabilities. The Group’s Corporate Treasury function provides services to the business departments, coordinates access to domestic and international financial markets, monitors and manages the financial risks relating to the operating Group’s internal risk reports which analyze exposures by degree and magnitude of risks. These risks include market risk (including foreign currency risk, interest rate risk and other price risks), credit risk and liquidity risk.

The plans for material treasury activities are reviewed by the board of directors in accordance with procedures required by relevant regulations or internal controls. Compliance with policies and exposure limits was reviewed by the internal auditors on a continuous basis. The Group does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes.

1) Market risk

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

There have been no changes to the Group’s exposure to market risks or the manner in which these risks were managed and measured.

a) Foreign currency risk

The Group had foreign currency sales and purchases, which exposed the Group to foreign currency risk.

The carrying amounts of the Group’s foreign currency denominated monetary assets and monetary liabilities (including those eliminated on consolidation) at the end of the reporting

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period are set out in Note 34.

Sensitivity analysis

The Group was mainly exposed to the United States dollars (USD) and the renminbi (RMB).

The following table details the Group’s sensitivity to a 1% increase and decrease in the New Taiwan dollar (NTD, the functional currency) against the relevant foreign currencies. The sensitivity analysis included only outstanding foreign currency-denominated monetary items. A positive number below indicates an increase in profit before income tax that would result when the NTD weakens by 1% against the relevant currency. For a 1% strengthening of the NTD against the relevant currency, there would be an equal and opposite impact on profit before income tax and the balances below would be negative.

Profit or loss	USD Impact
	For the Year Ended December 31
	2023 2022 $ 925,512 $ 840,817

The result was mainly attributable to the exposure on outstanding USD-denominated and RMB-denominated cash and cash equivalents, financial assets at amortized cost, and receivables and payables which were not hedged at the end of the reporting period.

The Group’s sensitivity to the USD and RMB increased during the current period mainly due to the increase in net assets denominated in USD and RMB. In management’s opinion, the sensitivity analysis was unrepresentative of inherent foreign exchange risk because the exposure at the end of the consolidated reporting period did not reflect the exposure during the period, the sales denominated in USD and RMB would vary with clients’ orders and asset investment.

b) Interest rate risk

The Group was exposed to interest rate risk because entities in the Group borrowed funds at both fixed and floating interest rates. The risk is managed by the Group by maintaining an appropriate mix of fixed and floating rate borrowings.

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

Fair value interest rate risk Financial assets Financial liabilities Cash flow interest rate risk Financial assets Financial liabilities	December 31
	2023 2022 $ 217,817,358 $ 191,571,008 4,514,834 132,220 1,149,791 10,812,504 73,040,000 56,696,000

Sensitivity analysis

The sensitivity analysis below was based on the Group’s exposure to interest rates for non-derivative instruments at the end of the reporting period. For floating rate liabilities, the analysis was prepared assuming that the amount of the liability outstanding at the end of the reporting period was outstanding for the whole year.

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If interest rates had been 10 basis points higher/lower and all other variables were held constant, the Group’s profit before tax for the years ended December 31, 2023 and 2022 would have decreased/increased by NT$71,890 thousand and NT$45,883 thousand, respectively; the change would have been mainly attributable to the Group’s exposure to interest rates on its variable-rate bank borrowings of cash flow.

c) Other price risk

The Group was exposed to equity price risk through its investments in listed shares and emerging market shares equity securities and mutual funds. The Group manages this exposure by maintaining a portfolio of investments with different risks and the allocation of assets.

Sensitivity analysis

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

If equity prices had been 1% higher/lower, pre-tax profit for the years ended December 31, 2023 and 2022 would have increased/decreased by NT$18,947 thousand and NT$1,897 thousand respectively, as a result of the changes in fair value of financial assets at FVTPL. Pre-tax profit for the years ended December 31, 2023 and 2022 would have increased/decreased by NT$57,471 thousand and NT$1,436 thousand respectively, as a result of the changes in fair value of financial assets at FVTOCI.

2) Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in a financial loss to the Group. As at the end of the reporting period, the Group’s maximum exposure to credit risk, which could cause a financial loss to the Group due to the failure of a counterparty to discharge an obligation, could at most amount to the carrying amount of the respective recognized financial assets as stated in the balance sheets.

The counterparties to the foregoing financial instruments are reputable business organizations. Management does not expect the Group’s exposure to default by those parties to be material; ongoing credit evaluation is also performed on the financial condition of customers with whom the Group has accounts receivable.

Information on credit risk concentration as of December 31, 2023 and 2022 was as follows:

Customer A Customer B Customer C Customer D Customer E	December 31	December 31
	2023 Amount % $ 1,034,447 27% 755,406 20% 669,658 18% 629,945 17% 438,886 12%	2022
		Amount % $ 2,324,628 24% 1,397,179 15% 550,548 6% 573,473 6% 4,126,487 43%

3) Liquidity risk

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

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The Group’s operating funds and bank loan credit line are deemed sufficient to meet cash flow demands; therefore, liquidity risk is not considered to be significant.

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

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

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

December 31, 2023

Non-derivative financial liabilities Non-interest bearing Lease liabilities Variable interest rate liabilities Fixed interest rate liabilities	Less than 3 Months $ 8,310,921 - 73,199,013 987,616 $ 82,497,550	3 Months to 1 Year $ 923,327 4,951 - 3,461,574 $ 4,389,852	1-5 Years Over 5 Years $ 12,300 $ - 19,802 125,979 - - - - $ 32,102 $ 125,979

Further information on the maturity analysis of the above financial liabilities was as follows:

Lease liabilities December 31, 2022	Less than 1 Year $ 4,951	1-5 Years $ 19,802	5-10 Years $ 24,753	10-15 Years $ 24,753	15-20 Years $ 46,770	20+ Years $ 29,703

Non-derivative financial liabilities Non-interest bearing Lease liabilities Variable interest rate liabilities	Less than 3 Months $ 7,084,223 1,771 - $ 7,085,394	3 Months to 1 Year $ 1,344,751 5,657 57,258,584 $ 58,608,992	1-5 Years Over 5 Years $ 10,036 $ - 17,942 120,700 - - $ 27,978 $ 120,700

Further information on the maturity analysis of the above financial liabilities was as follows:

Lease liabilities	Less than 1 Year $ 6,828	1-5 Years $ 17,942	5-10 Years $ 22,428	10-15 Years $ 22,428	15-20 Years $ 44,445	20+ Years $ 31,399

The amounts included for variable interest rate instruments for both non-derivative financial assets and liabilities would change if changes in variable interest rates differ from those estimates of interest rates determined at the end of the reporting period.

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b) Financing facilities

Unsecured bank loan facilities Amount used Amount unused Secured bank loan facilities Amount used Amount unused		December 31	December 31
		2023 $ 63,937,822 31,380,523 $ 95,318,345 $ 13,542,181 4,800,000 $ 18,342,181	2022 $ 43,800,362 60,590,377 $ 104,390,739 $ 13,000,000 - $ 13,000,000

31. TRANSACTIONS WITH RELATED PARTIES

Balances and transactions between the Company and its subsidiaries, which are related parties of the Company, have been eliminated upon consolidation and are not disclosed in this note. Details of transactions between the Group and other related parties are disclosed below.

Compensation of key management personnel

Short-term employee benefits Post-employment benefits		For the Year Ended December 31	For the Year Ended December 31
		2023 $ 225,368 34,431 $ 259,799	2022 $ 213,871 43,128 $ 256,999

The remuneration of directors and key executives are determined by the remuneration committee with due regard to the performance of individuals, the performance of the Group, and future risk.

32. PLEDGED ASSETS

Assets provided as collateral for financing loans were as follows:

Restricted bank deposit (classified as financial assets at amortized cost - current)		December 31	December 31
		2023 $ 15,487,096	2022 $ 14,687,274

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33. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

In addition to those disclosed in other notes, significant commitments and contingencies of the Group as of December 31, 2023 and 2022 were as follows:

Unrecognized commitments are as follows:

Acquisition of property, plant and equipment Acquisition of inventories		December 31	December 31
		2023 $ 130,872 $ 124,163	2022 $ 832,408 $ 35,725

34. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

The following information is an aggregation of foreign currencies other than the functional currencies of the entities in the Group and disclosure of the exchange rates between the foreign currencies and the respective functional currencies. The significant assets and liabilities denominated in foreign currencies were as follows:

(In Thousands of New Taiwan Dollars and Foreign Currencies)

December 31, 2023
	Foreign Currency
	(In	Thousands)	Exchange Rate	Carrying Amount
Financial assets
Monetary items
USD	$	2,266,914	30.65	$	69,492,253
			(USD:NTD)
USD		785,939	7.0827		23,904,512
			(USD:RMB)
SGD		117	21.1052		2,464
			(SGD:USD)
Financial liabilities
Monetary items
USD		11,110	30.755		341,681
			(USD:NTD)
USD		16,565	7.0827		503,843
			(USD:RMB)
RMB		15,328	4.352		66,709
			(RMB:NTD)
JPY		21,154	0.2156		4,561
			(JPY:RMB)

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December 31, 2022

Foreign Currency (In Thousands) Exchange Rate Carrying Amount

Financial assets
Monetary items
USD	$	2,118,093	30.66	$	64,940,720
			(USD:NTD)
USD		691,235	6.9646		20,673,525
			(USD:RMB)
RMB		4	4.383		17
			(RMB:NTD)
RMB		10	0.1436		42
			(RMB:USD)
Financial liabilities
Monetary items
USD		13,258	30.76		407,801
			(USD:NTD)
USD		37,608	6.9646		1,124,781
			(USD:RMB)
RMB		11,482	4.4330		50,898
			(RMB:NTD)

The Group is mainly exposed to the USD. The following information is an aggregation of the functional currencies of the entities in the Group and disclosures of the exchange rates between the respective functional currencies and the presentation currency. The significant realized and unrealized foreign exchange gains (losses) were as follows:

For the Year Ended December 31

Foreign Currency USD NTD RMB	2023	Net Foreign Exchange Gain (Loss) $ (150) 117,195 338,952 $ 455,997	2022
	Exchange Rate 31.1548 (USD:NTD) 1 (NTD:NTD) 4.424 (RMB:NTD)		Exchange Rate 29.804 (USD:NTD) 1 (NTD:NTD) 4.4346 (RMB:NTD)	Net Foreign Exchange Gain (Loss) $ 20,361 6,675,336 1,504,851 $ 8,200,548

35. SEPARATELY DISCLOSED ITEMS

a. Information about significant transactions
1) Financing provided to others (Table 1)
2) Endorsements/guarantees provided (Table 2)
3) Marketable securities held (excluding investments in subsidiaries and associates) (Table 3)
4) Marketable securities acquired and disposed of at costs or prices of at least NT$300 million or 20% of the paid-in capital (Table 4)
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5) Acquisitions of individual real estate at cost of at least NT$300 million or 20% of the paid-in capital (Table 5)
6) Disposals of individual real estate at a price of at least NT$300 million or 20% of the paid-in capital (N/A)
7) Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital (Table 6)
8) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital (Table 7)
9) Trading in derivative instruments (N/A)
10) Intercompany relationships and significant intercompany transactions (Table 10)
b. Information on investees (Table 8)
c. Information on investments in mainland China
1) Information on any investee company in mainland China, showing the name, principal business activities, paid-in capital, method of investment, inward and outward remittance of funds, ownership percentage, net income or loss of investee, investment income or loss, carrying amount of the investment at the end of the period, and repatriations of investment from the mainland China area (Table 9)
2) Significant transactions with investee companies in mainland China, either directly or indirectly through a third party, and their prices, payment terms, and unrealized gains or losses as follows (Tables 1, 2, 6, 7 and 10):
- a) Purchases - the amount and percentage of purchases and the balance and percentage of the related payables at the end of the period
- b) Sales - the amount and percentage of sales and the balance and percentage of the related receivables at the end of the period
- c) Property transactions - the amount of property transactions and the amount of the resultant gains or losses
- d) Endorsements and guarantees - the balance of negotiable instrument endorsements or guarantees or pledges of collateral at the end of the period and the purposes
- e) Financing - the highest balance during the period, the end of period balance, the interest rate range, and total current period interest with respect to the financing of funds
- f) Other - the transactions with material effect on profit or loss for the period or on the financial position, such as the rendering or receipt of services
d. Information of major shareholders ： List all shareholders with ownership of 5% or greater showing the name of the shareholder, the number of shares owned, and percentage of ownership of each shareholder (Table 12)
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36. SEGMENT INFORMATION

For the purpose of resource allocation and performance assessment, the Group’s chief operating decision maker reviews operating results and financial information on a plant-by-plant basis with a focus on the operating results of each plant. As each plant shares similar economic characteristics, produces similar products using similar production processes and all products are distributed and sold to same-level customers through a central sales function, the Group’s operating segments are aggregated into a single reportable segment. The Group’s chief operating decision maker reviews segment information measured on the same basis as the consolidated financial statements. Information about reportable segment sales and profit or loss is referenced from the consolidated statements of comprehensive income for the years ended December 31, 2023 and 2022, and the information on assets is referenced from the consolidated balance sheets as of December 31, 2023 and 2022.

a. Geographical information

The Group operates in two principal geographical areas - Taiwan and China.

The Group’s revenue from continuing operations from external customers by location of operations and information about its non-current assets by location of assets are detailed below:

China United States Taiwan Singapore Others Taiwan China		Revenue from External Customers	Revenue from External Customers
		For the Year Ended December 31
		2023 2022 $ 12,668,204 $ 19,931,066 304,428 2,491,824 294,474 409,306 3,009,778 4,382,883 1,797,000 605,450 $ 18,073,884 $ 27,820,529 Non-current Assets
		December 31,
		2023 $ 6,623,943 8,408,978 $ 15,032,921	2022 $ 6,543,349 9,872,942 $ 16,416,291

Non-current assets excluded those classified as investments accounted for using the equity method, financial instruments and deferred tax assets.

b. Information about major customers

Single customers who contributed 10% or more to the Group’s revenue were as follows:

Customer A Customer B Customer C		For the Year Ended December 31	For the Year Ended December 31
		2023 $ 5,276,339 4,863,754 3,009,778 $ 13,149,871	2022 $ 8,776,565 7,472,390 4,382,883 $ 20,631,838

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TABLE 1

CATCHER TECHNOLOGY CO., LTD. AND SUBSIDIARIES

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

No.	Lender	Borrower	Financial Statement Account	Related Parties	Highest Balance for the Period		Ending Balance	Actual Borrowing Amount	Interest Rate (%)	Nature of Financing	Business Transaction Amounts	Reasons for Short-term Financing	Allowance for Impairment Loss	Colla	teral	Financing Limit for Each Borrower (Note 1)	Aggregate Financing Limits (Note 2)
														Item	Value
1 2 3	Lyra International Co., Ltd. Uranus International Co., Ltd. Vito Technology (Suqian) Co., Ltd.	Next Level Ltd. Next Level Ltd. Arcadia Technology (Suqian) Co., Ltd.	Other receivables - related parties Other receivables - related parties Other receivables - related parties	Yes Yes Yes	$ 609,600 914,400 813,114		$ - $ - $ 780,336	$ - - 780,336	- - 1.5%	For short-term financing For short-term financing For short-term financing	$ - - -	Operating capital Operating capital Operating capital	$ - - -	- - -	$ - - -	$ 789,738,315 789,738,315 789,738,315	$ 789,738,315 $ 789,738,315 $ 789,738,315

Note 1: The upper limit of the 100% owned subsidiaries held directly or indirectly by the Company is equivalent to 500% of the net asset value as of December 31, 2023 of the Company; the upper limit of the subsidiaries is equivalent to 40% of the net asset value as of December 31, 2023 of the subsidiaries; but the upper limit of those with business transactions is no more than the needed amount for operations within one year.

Note 2: The upper limit of the 100% owned subsidiaries held directly or indirectly by the Company is equivalent to 500% of the net asset value as of December 31, 2023 of the Company; the upper limit of the subsidiaries is equivalent to 40% of the net asset value as of December 31, 2023 of the subsidiaries.

Note 3: The net asset value mentioned in Notes 1 and 2 above is the equity attributable to owners of the Company on the consolidated balance sheets.

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TABLE 2

CATCHER TECHNOLOGY CO., LTD. AND SUBSIDIARIES

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

No.	Endorser/Guarantor	Endorsee/Guarantee	Endorsee/Guarantee	Limit on Endorsement/ Guarantee Given on Behalf of Each Party (Note 1)	Maximum Amount Endorsed/ Guaranteed During the Period		Outstanding Endorsement/ Guarantee at the End of the Period		Actual Amount Borrowed		Amount Endorsed/ Guaranteed by Collateral	Ratio of Accumulated Endorsement/ Guarantee to Net Equity in Latest Financial Statements (%)		Aggregate Endorsement/ Guarantee Limit (Note 2)	Endorsement/ Guarantee Given by Parent on Behalf of Subsidiaries	Endorsement/ Guarantee Given by Subsidiaries on Behalf of Parent	Endorsement/ Guarantee Given on Behalf of Companies in Mainland China
		Name	Relationship
0 1 2 3 4	Catcher Technology Co., Ltd. Catcher Technology (Suqian) Co., Ltd. Vito Technology (Suqian) Co., Ltd. Arcadia Technology (Suqian) Co., Ltd. Envio Technology (Suqian) Co., Ltd.	Catcher Technology Co., Ltd. Catcher Technology (Suqian) Co., Ltd. Vito Technology (Suqian) Co., Ltd. Arcadia Technology (Suqian) Co., Ltd. Envio Technology (Suqian) Co., Ltd.	Business relation Business relation Business relation Business relation Business relation	$ 78,973,832 78,973,832 78,973,832 78,973,832 78,973,832	$ 10,000 18,069 22,214 16,438 24,271		$ 10,000 $ 8,670 $ 17,341 $ 13,006 $ 13,006		$ 10,000 $ 8,670 $ 17,341 $ 13,006 $ 13,006		$ - $ - $ - $ - $ -	0.01 0.01 0.01 0.01 0.01		$ 157,947,663 $ 157,947,663 $ 157,947,663 $ 157,947,663 $ 157,947,663	N N N N N	N N N N N	N Y Y Y Y

Note 1: The upper limit for each borrower of the Company and the 100% owned subsidiaries held directly or indirectly by the Company is equivalent to 50% of the net asset value of the Company as of December 31, 2023. Note 2: The upper limit of the Company and the 100% owned subsidiaries held directly or indirectly by the Company is equivalent to 100% of the net asset value of the Company as of December 31, 2023.

Note 3: The net asset value mentioned in Notes 1 and 2 above is the equity attributable to owners of the Company on the consolidated balance sheets.

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TABLE 3

CATCHER TECHNOLOGY CO., LTD. AND SUBSIDIARIES

MARKETABLE SECURITIES HELD (EXCLUDING INVESTMENTS IN SUBSIDIARIES AND ASSOCIATES) FOR THE YEAR ENDED DECEMBER 31, 2023 (In Thousands of New Taiwan Dollars and US Dollars, Unless Stated Otherwise)

Holding Company Name	Type and Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account		Decembe	r31, 2023		Note
				Units/ Number of Shares/ Denomination	Carrying Amount	Percentage of Ownership (%)	Fair Value
Catcher Technology Co., LTD. Ke Yue Co., Ltd. Yi De Co., Ltd. Yi Sheng Co., Ltd.	Listed Shares and Emerging Market Shares Sinher Technology Inc. Unlisted Shares Alpha Information Systems, Inc. CDIB Capital Innovation Accelerator Co., Ltd. Listed Shares and Emerging Market Shares United Orthopedic Corporation Intai Technology Corp. GLOBAL PMX CO., LTD. Apex Biotechnology Corp. HIGHLIGHT TECH CORP. FEEDBACK TECHNOLOGY CORP. CALITECH CO., LTD. SHIH HER TECHNOLOGIES INC. YEEDEX ELECTRONIC CORPORATION Limited Partnerships Taiwania Capital Buffalo Fund V, Lp. MESH Cooperative Ventures Fund Lp. Mutual fund Yuanta Japan Leading Enterprises Fund Listed Shares and Emerging Market Shares Excelsior Medical Co., Ltd. United Orthopedic Corporation Intai Technology Corp. GLOBAL PMX CO., LTD. Apex Biotechnology Corp. HIGHLIGHT TECH CORP. FEEDBACK TECHNOLOGY CORP. CALITECH CO., LTD. SHIH HER TECHNOLOGIES INC. Medtronic PLC Mutual fund Yuanta Japan Leading Enterprises Fund Listed Shares and Emerging Market Shares United Orthopedic Corporation Intai Technology Corp. GLOBAL PMX CO., LTD. Apex Biotechnology Corp. HIGHLIGHT TECH CORP.	None None None None None None None None None None None None None None None None None None None None None None None None None None None None None None None	Financial assets at FVTPL - current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - current Financial assets at FVTOCI - current Financial assets at FVTOCI - current Financial assets at FVTOCI - current Financial assets at FVTOCI - current Financial assets at FVTOCI - current Financial assets at FVTOCI - current Financial assets at FVTOCI - current Financial assets at FVTOCI - current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - current Financial assets at FVTOCI - current Financial assets at FVTOCI - current Financial assets at FVTOCI - current Financial assets at FVTOCI - current Financial assets at FVTOCI - current Financial assets at FVTOCI - current Financial assets at FVTOCI - current Financial assets at FVTOCI - current Financial assets at FVTOCI - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTOCI - current Financial assets at FVTOCI - current Financial assets at FVTOCI - current Financial assets at FVTOCI - current Financial assets at FVTOCI-current	2,121,917 1,500,000 3,395,400 1,789,000 2,315,000 2,084,000 4,762,000 1,431,000 1,627,000 1,811,000 1,186,000 24,000 - - 10,060,362 22,050 1,397,000 2,308,000 2,129,000 3,445,000 590,000 1,096,000 842,000 2,141,000 100 10,060,362 490,000 2,236,000 2,110,000 1,688,000 660,000	$ 75,328 - 57,348 152,244 299,792 267,794 191,909 69,475 155,379 108,660 100,336 2,604 188,411 67,671 100,905 1,949 118,885 298,886 273,576 138,833 28,645 104,668 50,520 181,129 254 100,905 41,699 289,562 271,135 68,026 32,043	2.85 10.00 3.57 2.03 4.65 1.81 4.76 1.21 3.39 4.84 2.09 0.10 12.78 7.39 - 0.01 1.59 4.64 1.85 3.45 0.50 2.29 2.25 3.77 - - 0.56 4.49 1.83 1.69 0.56	$ 75,328 - 57,348 152,244 299,792 267,794 191,909 69,475 155,379 108,660 100,336 2,604 188,411 67,671 100,905 1,949 118,885 298,886 273,576 138,833 28,645 104,668 50,520 181,129 254 100,905 41,699 289,562 271,135 68,026 32,043	Note 3 Note 3

(Continued)

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Holding Company Name	Type and Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account		Decembe	r31, 2023		Note
				Units/ Number of Shares/ Denomination	Carrying Amount	Percentage of Ownership (%)	Fair Value
Catcher Medtech Co., Ltd. Nanomag International Co., Ltd.	FEEDBACK TECHNOLOGY CORP. CALITECH CO., LTD. SHIH HER TECHNOLOGIES INC. Medtronic PLC Mutual fund Yuanta Japan Leading Enterprises Fund Listed Shares and Emerging Market Shares Intai Technology Corp. GLOBAL PMX CO., LTD. Limited Partnerships China Renewable Energy Fund, L.P. Corporate Bonds AERCAP IRELAND CAPITAL DAC AIRCASTLE LTD ARES CAPITAL CORPORATION BAT CAPITAL CORP BACARDI LTD CANADIAN NATURAL RESOURCES LTD CELANESE US HOLDINGS LLC CENTENE CORPORATION DUKE ENERGY OHIO INC DCP MIDSTREAM OPERATING LP DANSKE BANK A/S DELTA AIR LINES INC DISCOVER BANK DISCOVERY COMMUNICATIONS LLC EDP FINANCE BV EQT CORP ENEL FINANCE INTERNATIONAL NV ENTERGY LOUISIANA LLC EXPEDIA INC EXPEDIA GROUP INC GENERAL MOTORS FINANCIAL CO INC GLENCORE FUNDING LLC HCA INC HARLEY-DAVIDSON FINANCIAL SERVICES HYUNDAI CAPITAL AMERICA INTESA SANPAOLO SPA JDE PEETS NV LABORATORY CORPORATION OF AMERICA LENNAR CORPORATION MPLX LP NRG ENERGY INC OMEGA HLTHCARE INVESTORS PARK AEROSPACE HOLDINGS LTD SANTANDER HOLDINGS USA INC SCHLUMBERGER HOLDINGS CORP STANDARD CHARTERED PLC SUNOCO LOGISTICS PARTNERS OPERATIO SYNCHRONY FINANCIAL VALERO ENERGY CORPORATION VENTAS REALTY LP VICI PROPERTIES LP/VICI NOTE CO IN	None None None None None None None None None None None None None None None None None None None None None None None None None None None None None None None None None None None None None None None None None None None None None None None None None	Financial assets at FVTOCI - current Financial assets at FVTOCI - current Financial assets at FVTOCI - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTOCI - current Financial assets at FVTOCI - current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI-non-current	879,000 1,053,000 728,000 100 10,060,362 1,789,000 1,654,000 - 1,025,000 1,000,000 1,000,000 1,500,000 1,615,000 1,500,000 1,058,000 1,000,000 1,011,000 1,000,000 1,766,000 2,000,000 2,000,000 1,400,000 1,812,000 1,000,000 1,076,000 1,100,000 1,200,000 800,000 1,500,000 1,000,000 1,500,000 1,100,000 2,000,000 1,500,000 580,000 1,500,000 1,364,000 1,000,000 1,701,000 700,000 1,000,000 1,000,000 1,500,000 1,000,000 750,000 1,000,000 367,000 1,000,000 1,000,000	$ 83,944 63,180 61,589 253 100,905 231,675 212,539 USD 56,652 USD 1,007 USD 987 USD 992 USD 1,477 USD 1,593 USD 1,492 USD 1,049 USD 967 USD 1,036 USD 1,002 USD 1,766 USD 2,014 USD 1,952 USD 1,394 USD 1,792 USD 949 USD 1,052 USD 1,065 USD 1,201 USD 807 USD 1,473 USD 996 USD 1,497 USD 1,062 USD 1,979 USD 1,474 USD 558 USD 1,477 USD 1,358 USD 994 USD 1,682 USD 697 USD 999 USD 989 USD 1,491 USD 999 USD 747 USD 991 USD 355 USD 993 USD 964	1.83 2.81 1.28 - - 3.59 1.44 23.51	$ 83,944 63,180 61,589 253 100,905 231,675 212,539 USD 56,652 USD 1,007 USD 987 USD 992 USD 1,477 USD 1,593 USD 1,492 USD 1,049 USD 967 USD 1,036 USD 1,002 USD 1,766 USD 2,014 USD 1,952 USD 1,394 USD 1,792 USD 949 USD 1,052 USD 1,065 USD 1,201 USD 807 USD 1,473 USD 996 USD 1,497 USD 1,062 USD 1,979 USD 1,474 USD 558 USD 1,477 USD 1,358 USD 994 USD 1,682 USD 697 USD 999 USD 989 USD 1,491 USD 999 USD 747 USD 991 USD 355 USD 993 USD 964	Note 3
							(Continued)

70 -

Holding Company Name	Type and Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account		Decembe	r31, 2023		Note
				Units/ Number of Shares/ Denomination	Carrying Amount	Percentage of Ownership (%)	Fair Value
Cor Ventures Pte. Ltd.	VISTRA OPERATIONS CO LLC VISTRA OPERATIONS CO LLC VMWARE INC WESTINGHOUSE AIR BRAKE TECHNOLOGIE GOLDMAN SACHS INTERNATIONAL CALLABLE MEDIUM TERM NOTE FIXED Bond US TREASURY Foreign unlisted shares Vyisoneer Inc. Private Equity Funds Ally Bridge Group LP ABG-CMRCO LP Altara Ventures Fund LP New Economy Ventures LP Baring Asia Private Equity Fund VIII Silver Lake Alpine Fund II Foreign listed stocks Navitas Private Equity Securities Via Surgical Ltd.	None None None None None None None None None None None None None None	Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTOCI - non-current Financial assets at FVTPL - non-current	1,000,000 1,000,000 1,500,000 20,000,000 2,647,000,000 494,095 - - - - - - 200,000 14,246	USD 986 USD 991 USD 1,494 USD 20,227 USD 2,659,918 USD 1,600 USD 15,575 USD 8,694 USD 3,105 USD 1,306 USD 4,876 USD 5,882 USD 1,614 -	8.89 2.54 25.32 3.84 7.36 0.27 0.30 0.11 4.34	USD 986 USD 991 USD 1,494 USD 20,227 USD 2,659,918 USD 1,600 USD 15,575 USD 8,694 USD 3,105 USD 1,306 USD 4,876 USD 5,882 USD 1,614 -	Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3
							(Concluded)

Note 1: Securities in this table are shares, bonds, beneficiary certificates and those derived from the above-mentioned items which are within the scope of IFRS 9 “Financial Instrument: Recognition and Measurement”.

Note 2: Refer to Tables 8 and 9 for information on subsidiaries and associates.

Note 3: Percentage of Ownership is the fund share ratio.

71 -

TABLE 4

CATCHER TECHNOLOGY CO., LTD. AND SUBSIDIARIES

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

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

Company Name	Type and Name of Marketable Securities	Financial Statement Account	Counterparty	Relationship	Beginning Balance	Beginning Balance	Acquisition	Acquisition		Disposal	Disposal		Ending Bala	nce (Note 1)
					Number of Shares/units/ denomination	Amount	Number of Shares/units/ denomination	Amount	Number of Shares/units	Amount	Carrying Amount	Gain (Loss) on Disposal	Number of Shares/units/ denomination	Amount
Catcher Technology Co., LTD. Nanomag International Co., Ltd.	Unlisted shares Yi Sheng Co., Ltd. Yi De Co., Ltd. Catcher Medtech Co., Ltd. Government bonds US TREASURY Corporate bonds GOLDMAN SACHS INTERNATIONAL CALLABLE MEDIUM TERM NOTE FIXED Unlisted shares Cor Venturnes Pte, Ltd.	Investments accounted for using the equity method Investments accounted for using the equity method Investments accounted for using the equity method Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Investments accounted for using the equity method	Note 2 Note 2 Note 2 - - Note 2	100% reinvested subsidiary 100% reinvested subsidiary 100% reinvested subsidiary - - 100% reinvested subsidiary	73,270,000 73,270,000 2,000,000 10,000,000 - 55,165,797	$ 1,063,672 1,082,883 195,444 USD 10,201 - USD 49,840	5,500,000 7,000,000 9,500,000 2,637,000,000 20,000,000 45,000,000	$ 550,000 700,000 950,000 USD 2,651,466 USD 20,000 USD 45,000	- - - - - -	$ - - - - - -	$ - - - - - -	$ - - - - - -	78,770,000 80,270,000 11,500,000 2,647,000,000 20,000,000 100,165,797	$ 1,612,772 1,857,807 1,147,344 USD 2,659,918 USD 20,227 USD 97,616

Note 1: The opening and closing balances include fair value adjustments, profit and loss of subsidiaries recognized using the equity method and other adjustment items.

Note 2: Cash capital increase.

72 -

TABLE 5

CATCHER TECHNOLOGY CO., LTD. AND SUBSIDIARIES

ACQUISITION OF IMMOVABLE PROPERTY AND DISPOSED OF AT COSTS OR PRICES OF AT LEAST NT$300 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE YEAR ENDED DECEMBER 31, 2023

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

Buyer	The name of the property	The date of the fact	Amount	Payment of the price	Counterparty	Relationship	If the trans	action partner transferred	is a related party, the data previously	is a related party, the data previously	Pricing Reference	Purpose of acquisition and Use cases	Miscellaneous Matters
							All of them	with the issuer relationship	The date of the transfer	Amount
The Company	Land & Buildings – Daan District, Taipei City	January17, 2023	$ 466,967	Paid	HSBC Global Asset Management (Taiwan) Limited	Not related party	Not applicable	Not applicable	Not applicable	$ -	Appraisal report	For operational needs	None

73 -

TABLE 6

CATCHER TECHNOLOGY CO., LTD. AND SUBSIDIARIES

TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE YEAR ENDED DECEMBER 31, 2023

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

Buyer	Related Party	Relationship		Trans	action Details		Abnor	mal Transaction	Notes/Accounts Re	ceivable (Payable)	Note
			Purchase/ Sale	Amount	% of Total	Payment Terms	Unit Price	Payment Terms	Ending Balance	% of Total
Catcher Technology (Suqian) Co., Ltd. Vito Technology (Suqian) Co., Ltd.	Arcadia Technology (Suqian) Co., Ltd. Arcadia Technology (Suqian) Co., Ltd. Envio Technology (Suqian) Co., Ltd. Arcadia Technology (Suqian) Co., Ltd.	Same ultimate parent company Same ultimate parent company Same ultimate parent company Same ultimate parent company	Sales Purchases Sales Sales	$ (2,720,809 ) 106,129 (485,523 ) (2,251,044 )	69 14 12 55	Net 30 to 90 days after month end close Net 30 to 90 days after month end close Net 30 to 90 days after month end close Net 30 to 90 days after month end close	Equivalent Equivalent Equivalent Equivalent	Equivalent Equivalent Equivalent Equivalent	$ 1,620,195 (19,554 ) 206,252 1,520,801	79 5 10 66

74 -

TABLE 7

CATCHER TECHNOLOGY CO., LTD. AND SUBSIDIARIES

RECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL DECEMBER 31, 2023

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

Company Name	Related Party	Relationship	Ending Balance	Turnover Ratio	Overdue	Overdue	Amounts Received in Subsequent Period	Allowance for Impairment Loss
					Amount	Actions Taken
Catcher Technology (Suqian) Co., Ltd. Vito Technology (Suqian) Co., Ltd.	Vito Technology (Suqian) Co., Ltd. Arcadia Technology (Suqian) Co., Ltd. Envio Technology (Suqian) Co., Ltd. Catcher Technology (Suqian) Co., Ltd. Arcadia Technology (Suqian) Co., Ltd. Arcadia Technology (Suqian) Co., Ltd.	Same ultimate parent company Same ultimate parent company Same ultimate parent company Same ultimate parent company Same ultimate parent company Same ultimate parent company	$ 459,570 1,620,195 206,252 108,147 1,520,801 780,336	- (Note) 1.20 4.39 1.72 1.10 - (Note)	$ - - - - - -	Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable	$ - 420,666 101,945 8,119 253,019 -	$ - - - - - -

Note: Receivables from processing and loaning of funds to others; the turnover ratio is not applicable.

75 -

TABLE 8

CATCHER TECHNOLOGY CO., LTD. AND SUBSIDIARIES

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

Investor Company	Investee Company	Location	Main Businesses and Products	Original Inves	tment Amount	As of	December 3	1, 2023	Net Income (Loss) of the Investee	Share of Profits (Loss) (Note 1)	Note
				December 31, 2023	December 31, 2022	Number of Shares	%	Carrying Amount
Catcher Technology Co., Ltd. Ke Yue Co., Ltd. Yi Sheng Co., Ltd. Yi De Co., Ltd. Catcher Medtech Co., Ltd. Yi Fa Co., Ltd. Nanomag International Co., Ltd.	Gigamag Co., Ltd. Nanomag International Co., Ltd. SMART ECARE INC. Ke Yue Co., Ltd. Yi Sheng Co., Ltd. Yi De Co., Ltd. Catcher Medtech Co., Ltd. Catcher Holdings International Inc. Yi Fa Co., Ltd. Yi Chuan Co., Ltd. Yi Zhu Co., Ltd. Pacific Hospital Supply Co., Ltd. Bioteque Corporation Pacific Hospital Supply Co., Ltd. Bioteque Corporation Pacific Hospital Supply Co., Ltd. Bioteque Corporation Pacific Hospital Supply Co., Ltd. Bioteque Corporation Ren He Medical Materials Technology Co., Ltd. Ren Yi Medical Materials Technology Co., Ltd. Pacific Hospital Supply Co., Ltd. Bioteque Corporation Castmate International Co., Ltd. Stella International Co., Ltd.	Vistra Corporate Services Centre, Ground Floor NPF Building, Beach Road, Apia, Samoa P.O. Box31119 Grand Pavilion, Hibiscus Way, 802 West Bay Road, Grand Cayman, KY1-1205 Cayman Islands 13F., No. 99, Sec. 2, Dunhua S. Rd., Da`’`an Dist., Taipei City 106 , Taiwan (R.O.C.) 1F, No. 10, Lane 138, Renai Street, Yongkang District, Tainan City 1F, No. 10, Lane 138, Renai Street, Yongkang District, Tainan City 1F, No. 10, Lane 138, Renai Street, Yongkang District, Tainan City No. 10, Yongke 5th Rd., Yongkang Dist., Tainan City 710 , Taiwan (R.O.C.) 3524 Silverside Road Suite 35B, Wilmington, New Castle, United State 1F, No. 10, Lane 138, Renai Street, Yongkang District, Tainan City 1F, No. 10, Lane 138, Renai Street, Yongkang District, Tainan City 1F, No. 10, Lane 138, Renai Street, Yongkang District, Tainan City No. 8, Tongke 2 Road, Jiuhu Village, Causeway Township, Miaoli County, Hsinchu Science Park 5F-6, No. 23, Sec. 1, Chang'an East Road, Zhongshan District, Taipei City 104 No. 8, Tongke 2 Road, Jiuhu Village, Causeway Township, Miaoli County, Hsinchu Science Park 5F-6, No. 23, Sec. 1, Chang'an East Road, Zhongshan District, Taipei City 104 No. 8, Tongke 2 Road, Jiuhu Village, Causeway Township, Miaoli County, Hsinchu Science Park 5F-6, No. 23, Sec. 1, Chang'an East Road, Zhongshan District, Taipei City 104 No. 8, Tongke 2 Road, Jiuhu Village, Causeway Township, Miaoli County, Hsinchu Science Park 5F-6, No. 23, Sec. 1, Chang'an East Road, Zhongshan District, Taipei City 104 No. 10, Yongke 5th Rd., Yongkang Dist., Tainan City 710 , Taiwan (R.O.C.) No. 10, Yongke 5th Rd., Yongkang Dist., Tainan City 710 , Taiwan (R.O.C.) No. 8, Tongke 2 Road, Jiuhu Village, Causeway Township, Miaoli County, Hsinchu Science Park 5F-6, No. 23, Sec. 1, Chang'an East Road, Zhongshan District, Taipei City 104 Vistra Corporate Services Centre, Wickhams Cay II, Road Town, Tortola, VG1110, British Virgin Islands P.O. Box31119 Grand Pavilion, Hibiscus Way, 802 West Bay Road, Grand Cayman, KY1-1205 Cayman Islands	Investing activities Investing activities Health and medical treatment consultant Investing activities Investing activities Investing activities Manufacturing, selling and developing medical equipments Investing activities Investing activities Investing activities Investing activities Biotechnology and Medical activities Biotechnology and Medical activities Biotechnology and Medical activities Biotechnology and Medical activities Biotechnology and Medical activities Biotechnology and Medical activities Biotechnology and Medical activities Biotechnology and Medical activities selling and developing medical equipments selling and developing medical equipments Biotechnology and Medical activities Biotechnology and Medical activities Investing activities Investing activities	$ 484,941 1 72,000 3,000,000 1,549,919 1,699,930 1,150,000 - (USD 0) 102,000 2,000 2,000 528,203 756,426 240,757 279,319 295,411 245,534 251,915 290,840 2,000 2,000 19,120 25,466 28,127 (USD 1,009,592) 9,251,725 (USD 332,079,144)	$ 484,941 1 72,000 3,000,000 1,000,000 1,000,000 200,000 - (USD 0) - - - 519,621 599,636 240,757 279,091 295,411 243,370 - - - - - - 28,127 (USD 1,009,592) 9,251,725 (USD 332,079,144)	14,377,642 30 1,440,000 198,390,000 78,770,000 80,270,000 11,500,000 - 1,200,000 200,000 200,000 7,155,000 6,788,000 3,254,000 2,591,000 4,047,000 2,252,000 3,003,000 2,729,000 200,000 200,000 222,000 236,000 1,009,592 332,079,144	100 100 45 100 100 100 100 - 100 100 100 9.86 9.80 4.48 3.74 5.57 3.25 4.14 3.94 100 100 0.31 0.34 100 100	$ 2,038,756 156,570,296 3,710 3,056,462 1,612,772 1,857,807 1,147,344 - 102,110 1,985 1,985 496,982 776,230 225,347 297,564 280,264 258,602 254,248 293,005 1,982 1,982 19,172 25,546 162,623 17,413,182	$ 106,704 8,907,794 2,091 88,515 46,537 49,419 (1,946 ) - 120 (15 ) (15 ) 420,792 459,260 420,792 459,260 420,792 459,260 420,792 459,260 (18 ) (18 ) 420,792 459,260 7,460 916,505	$ 106,704 9,033,179 941 88,515 46,537 49,419 (1,911 ) - 120 (15 ) (15 )	Note 3

(Continued)

76 -

Investor Company	Investee Company	Location	Main Businesses and Products	Original Inves	tment Amount	As of	December 3	1, 2023	Net Income (Loss) of the Investee	Share of Profits (Loss) (Note 1)	Note
				December 31, 2023	December 31, 2022	Number of Shares	%	Carrying Amount
Castmate International Co., Ltd. Stella International Co., Ltd. Aquila International Co., Ltd. Catcher Holdings International Inc.	Aquila International Co., Ltd. Uranus International Co., Ltd. Norma International Co., Ltd. Next Level Ltd. Cor Ventures Pte. Ltd. Cygnus International Co., Ltd. Lyra International Co., Ltd. Cepheus International Co., Ltd. Catcher Ventures Inc.	P.O. Box31119 Grand Pavilion, Hibiscus Way, 802 West Bay Road, Grand Cayman, KY1-1205 Cayman Islands Room 1907, 19F, Lee Garden One, 33 Hysan Avenue, Causeway Bay, Hong Kong Room 1907, 19F, Lee Garden One, 33 Hysan Avenue, Causeway Bay, Hong Kong Vistra Corporate Services Centre, Ground Floor NPF Building, Beach Road, Apia, Samoa 160 Robinson Road, #14-04 Singapore Business Federation Centre, Singapore 068914 Room 1907, 19F, Lee Garden One, 33 Hysan Avenue, Causeway Bay, Hong Kong Room 1907, 19F, Lee Garden One, 33 Hysan Avenue, Causeway Bay, Hong Kong Room 1907, 19F, Lee Garden One, 33 Hysan Avenue, Causeway Bay, Hong Kong 14451 Chambers Road Suite 100 Tustin, CA 92780, United State	Investing activities Investing activities Investing activities Investing activities Investing activities Investing activities Investing activities Investing activities Investing activities	$ 31,203 (USD 1,120,000) 11,116,401 (USD 399,009,383) 8,345,009 (USD 299,533,691) 279 (USD 10,000) 2,931,244 (USD 100,165,797) - `（`USD 0`）` 1 `（`USD 30`）` - `（`USD 0`）` - (USD 0)	$ 31,203 (USD 1,120,000) 11,116,401 (USD 399,009,383) 8,345,009 (USD 299,533,691) 279 (USD 10,000) 1,536,919 (SGD 55,165,797) 278,747 (USD 10,005,259) 1 `（`USD 30`）` 39,004 (USD 1,400,000) - (USD 0)	1,050,000 399,009,383 299,533,691 10,000 100,165,797 - 30 - -	75 100 100 100 100 - 100 - -	$ 34,176 18,183,666 12,996,045 455,787 2,997,314 - 21,579 - -	$ 1,410 98,435 3,115,027 66,621 70,896 - 1,061 - -		Note 3
										(	Concluded)

Note 1: Share of profit (loss) is only reflected for the subsidiaries invested in directly and the investments accounted for by using the equity method.

Note 2: Information on investments in mainland China is provided in Table 9.

Note 3: Established and registered on June 2022, the relevant investment funds have not been remitted.

77 -

TABLE 9

CATCHER TECHNOLOGY CO., LTD. AND SUBSIDIARIES

INFORMATION ON INVESTMENTS IN MAINLAND CHINA FOR THE YEAR ENDED DECEMBER 31, 2023

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

Investee Company	Main Businesses and Products	Main Businesses and Products	Paid-in Capital (Note 13)	Method of Investment (Note 1)	Accumulated Outward Remittance for Investment from Taiwan as of January 1, 2023 (Note 13)	Remittanc	e of Funds	Accumulated Outward Remittance for Investment from Taiwan as of December 31, 2023 (Note 13)	Net Income (Loss) of the Investee	% Ownership of Direct or Indirect Investment	Investment Gain (Loss) (Note 2)	Carrying Amount as of December 31, 2023	Accumulated Repatriation of Investment Income as of December 31, 2023
						Outward	Inward
Catcher Technology (Suzhou) Co., Ltd. Topo Technology (Suzhou) Co., Ltd. Topo Technology (Taizhou) Co., Ltd. Meeca Technology (Taizhou) Co., Ltd. Meeca Technology (Suzhou Industrial Park) Co., Ltd. Catcher Technology (Suqian) Co., Ltd. Vito Technology (Suqian) Co., Ltd. Arcadia Technology (Suqian) Co., Ltd. Envio Technology (Suqian) Co., Ltd. Aquila Technology (Suqian) Co., Ltd. (Note 17) WIT Technology (Taizhou) Co., Ltd. (Note 14) Chaohu Yunhai Magnesium Co., Ltd. (Note 15)	Manufacturing, selling and developing varied metal products Manufacturing, selling and developing varied metal products Manufacturing, selling and developing varied metal products Manufacturing, selling and developing varied metal products Manufacturing, selling and developing varied metal products Manufacturing, selling and developing varied metal products Manufacturing, selling and developing varied metal products Manufacturing, selling and developing varied metal products Manufacturing, selling and developing varied metal products Manufacturing and selling molds and electronic parts Researching, developing and manufacturing communication electronic products Manufacturing and selling dolomite, aluminum, magnesium alloy and other alkaline-earth metals		$ - - - - - 6,141,000 `（`USD 200,000,000`）` 5,837,238 `（`RMB 409,431,280`）` `（`USD 132,300,000`）` 5,989,536 `（`RMB 398,499,193`）` `（`USD 138,803,527`）` 2,999,528 `（`RMB 188,956,820`）` `（`USD 71,010,000`）` - - -	2. Cygnus International Co., Ltd. (Note 8) 2. Lyra International Co., Ltd. (Notes 4 and 5) 2. Lyra International Co., Ltd. (Note 9) 2. Lyra International Co., Ltd. (Note 12) 2. Cygnus International Co. Ltd. (Note 6) 2. Uranus International Co., Ltd. (Note 7) 2. Uranus International Co., Ltd. (Note 10) 2. Norma International Co., Ltd. (Note 11) 2. Norma International Co., Ltd. (Note 16) 2. Cepheus International Co., Ltd. 2. Cetus International Co., Ltd. 2. Sagitta International Co., Ltd.	$ 1,023,705 `（`USD 33,340,000`）` 1,238,640 `（`USD 40,340,000`）` - - - 2,916,944 `（`USD 94,999,000`）` - - - 34,390 `（`USD 1,120,000`）` - 678,025 `（`USD 22,081,923`）`	$ - - - - - - - - - - - -	$ - - - - - - - - - - - -	$ 1,023,705 `（`USD 33,340,000`）` 1,238,640 `（`USD 40,340,000`）` - - - 2,916,944 `（`USD 94,999,000`）` - - - 34,390 `（`USD 1,120,000`）` - 678,025 `（`USD 22,081,923`）`	$ - - - - - (206,738) 263,030 2,997,492 102,702 - - -	- - - - - 100 100 100 100 75 - -	$ - - - - - (183,271) (2)A. 281,742 (2)A. 3,017,261 (2)A. 97,799 (2)A. - (2)A. - -	$ - - - - - 9,180,758 9,191,129 9,653,882 3,340,967 - - -	$ - 930,304 18,644,177 4,777,580 2,109,621 10,801,111 340,510 3,418,675 102,696 169,684 - -
							mission,
Accumulated Outward Rem Investment in Mainland China 31, 2023 (Note 13)	ittance for as of December	Investment A Investment (Not	mounts Authorized by Commission, MOEA es 13 and 14)	Upper Limit on the Amo	unt of Investment Stipulated by Investment Com MOEA (Note 3)		mission,
$ 5,891,704 `（`USD 191,880,923`）`		$ 44,603,702 `（`USD 1,079,728,587.89`）` `（`RMB 2,641,316,560.48`）`			$ 94,775,432

Note 1: The investing methods are categorized as follows:

1: Direct investment in companies in mainland China
2: Investment in companies in mainland China, which is made by a company incorporated via a third region
3: Others
78 -

Note 2: In the column:

1: This means the investee is under initial preparation and there were no gains or losses on investment.
2: The recognition of gains or losses on investment is based on:
(1) The financial statements audited by global accounting firms, which are affiliated with the accounting firms in the Republic of China
(2) The financial statements audited by the certified public accountant of the parent company in Taiwan
(3) Others
Note 3: The upper limit on investment in mainland China is calculated as $157,959,054×60%=$94,775,432.
Note 4: The paid-in capital of US$6,670,000, which is self-funding of Nanomag International Co., Ltd., is invested in Topo Technology (Suzhou) Co., Ltd. through Stella International Co., Ltd., and the paid-in capital of US$33,300,000 is earnings distributed in the third quarter of 2011. Thereafter, the amount of US$33,300,000 is returned by capital reduction in the fourth quarter of 2014.
Note 5: The paid-in capital of US$30,000,000 is earnings distributed from Topo Technology (Suzhou) Co., Ltd. to Stella International Co., Ltd., which were then reinvested in Topo Technology (Suzhou) Co., Ltd. Thereafter, the amount of US$67,000,000 was returned by capital reduction in the first quarter of 2016. Cygnus International Co., Ltd. sold all of its equity in November 2021, but the proceeds has not yet been remitted to Taiwan and therefore has not been deducted from the investment amount approved by Investment Commission, MOEA.
Note 6: The paid-in capital of US$106,000,000 is earnings distributed from Catcher Technology (Suzhou) Co., Ltd. to Castmate International Co., Ltd., which were then invested in Meeca Technology (Suzhou Industrial Park) Co., Ltd., and the paid-in capital of US$16,670,000 is earnings distributed in the third quarter of 2011. The amount of US$16,670,000 was returned by capital reduction in the fourth quarter of 2014 and the amount of US$32,000,000 in the third quarter of 2016. Thereafter, the amount of US$32,000,000 was returned by capital reduction in the second quarter of 2017, and the amount of US$32,000,000 was returned by capital reduction in the third quarter of 2017. Lyra International Co., Ltd. sold all of its equity in November 2021, but the proceeds has not yet been remitted to Taiwan and therefore has not been deducted from the investment amount approved by Investment Commission, MOEA.
Note 7: The paid-in capital of US$5,001,000 is earnings distributed from Catcher Technology (Suzhou) Co., Ltd. to Castmate International Co., Ltd., which were then invested in Catcher Technology (Suqian) Co., Ltd. The paid-in capital of US$100,000,000 is earnings distributed from Topo Technology (Suzhou) Co., Ltd. to Stella International Co., Ltd., which were invested in Catcher Technology (Suqian) Co., Ltd. through Uranus International Co., Ltd.
Note 8: The paid-in capital of US$16,670,000 is earnings distributed in the third quarter of 2011. Thereafter, the amount of US$40,000,000 was returned by capital reduction in the second quarter of 2014, and due to dissolution, US$10,010,000 of capital were returned in August 2016; the remaining amount of capital has not been wired back to Taiwan.
Note 9: The paid-in capital of RMB227,510,746 is earnings distributed from Topo Technology (Suzhou) Co., Ltd. to Stella International Co., Ltd., which were then invested in Topo Technology (Taizhou) Co., Ltd. On the other hand, US$65,979,240 and RMB602,268,326 are earnings distributed from investees in mainland China to Nanomag International Co., Ltd., which were then invested in Topo Technology (Taizhou) Co., Ltd. via Lyra International Co., Ltd.
Note 10: The paid-in capital of US$99,000,000 is earnings distributed from Catcher Technology (Suzhou) Co., Ltd. to Nanomag International Co., Ltd., which were then invested in Vito Technology (Suqian) Co., Ltd. via Uranus International Co., Ltd. The paid-in capital of US$33,300,000 and RMB409,431,280 is earning distributed from Topo Technology (Suzhou) Co., Ltd. to Nanomag International Co., Ltd., which were then invested in Vito Technology (Suqian) Co., Ltd. through Uranus International Co., Ltd.
Note 11: The paid-in capital of US$27,332,360 and RMB398,499,193 are earnings distributed from Catcher Technology (Suzhou) Co., Ltd. and Topo Technology (Suzhou) Co., Ltd. to Nanomag International Co., Ltd., which were then invested in Arcadia Technology (Suqian) Co., Ltd. through Norma International Co., Ltd. The paid-in capital of US$89,970,000, which is the proceeds arising from the capital reduction of Catcher Technology (Suzhou) Co., Ltd., Topo Technology (Suzhou) Co., Ltd., and Meeca Technology (Suzhou Industrial Park) Co., Ltd., was invested in Arcadia Technology (Suqian) Co., Ltd. through Norma International Co., Ltd. The paid-in capital of US$21,501,167 is earning distributed from Catcher Technology (Suzhou) Co., Ltd. and Topo Technology (Suzhou) Co., Ltd. to Nanomag International Co., Ltd., which were then invested in Arcadia Technology (Suqian) Co., Ltd. through Norma International Co., Ltd.
Note 12: The paid-in capital of US$17,610,861 and RMB529,989,796 are earnings distributed from Catcher Technology (Suzhou) Co., Ltd. and Topo Technology (Suzhou) Co., Ltd. to Nanomag International Co., which were then invested in Meeca Technology (Taizhou) Co., Ltd. through Lyra International Co., Ltd. The paid-in capital of US$20,000,000 and RMB284,660,400 are earnings and liquidation income distributed from Catcher Technology (Suzhou) Co., Ltd. and earnings distributed from Topo Technology (Suzhou) Co., Ltd. and Meeca Technology (Suzhou Industrial Park) Co., Ltd. to Nanomag International Co., Ltd., which were then invested in Meeca Technology (Taizhou) Co., Ltd. through Lyra International Co., Ltd. The paid-in capital of USD18,000,000 is earning distributed from Lyra International Co., Ltd. to Topo Technology (Taizhou) Co., Ltd., which were then invested in Meeca Technology (Taizhou) Co., Ltd. Lyra International Co., Ltd. sold all of its equity in December 2020, but the investment amount has not yet been remitted to Taiwan and therefore has not been deducted from the investment amount approved by Investment Commission, MOEA.
Note 13: The exchange rate on December 31, 2023 was US$1:NT$30.705.
The exchange rate on December 31, 2023 was RMB1:NT$4.3352.
Note 14: WIT Technology (Taizhou) Co., Ltd. was dissolved in June 2012, and the remaining amount of capital has not been wired back to Taiwan.
Note 15: Sagitta International Co., Ltd. sold all of its shares of Chaohu Yunhai Magnesium Co., Ltd. in June 2016, and the remaining amount of capital has not been wired back to Taiwan.
Note 16: The paid-in capital of US$71,010,000 and RMB$ 188,956,820 are the proceeds from the liquidated shares in Catcher Technology (Suzhou) Co., Ltd. The amounts from the capital reduction in Topo Technology (Suzhou) Co., Ltd. and in Meeca Technology (Suzhou Industrial Park) Co., Ltd. are invested in Envio Technology (Suqian) Co., Ltd. through Norma International Co., Ltd.
Note 17: Aquila Technology (Suqian) Co., Ltd. was liquidated and canceled in February 2022; the proceeds have not been remitted back to Taiwan and therefore have not been deducted from the investment amount approved by the Investment Commission, MOEA.
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TABLE 10

CATCHER TECHNOLOGY CO., LTD. AND SUBSIDIARIES

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS FOR THE YEAR ENDED DECEMBER 31, 2023

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

No.	Investee Company	Counterparty	Relationship (Note 1)			Transaction Details
				Financial Statement Account	Amount (Note 2)	Payment Terms	% of Total Sales or Assets
0 1	Catcher Technology (Suqian) Co., Ltd. Vito Technology (Suqian) Co., Ltd.	Vito Technology (Suqian) Co., Ltd. Arcadia Technology (Suqian) Co., Ltd. Envio Technology (Suqian) Co., Ltd. Arcadia Technology (Suqian) Co., Ltd. Catcher Technology (Suqian) Co., Ltd.	3 3 3 3 3	Other receivables from related parities Processing income Processing expense Purchase of property, plant and equipment Receivables from related parties Sales Purchases Receivables from related parties Sales Receivables from related parties Other payables to related parities Sales Purchases Receivables from related parties	$ 459,570 902,343 118,058 173,500 1,620,195 2,720,809 106,129 206,252 485,523 1,520,801 780,336 2,251,044 89,919 108,147	The sales prices were not different from third parties, net 30 to 90 days after month end close. The purchase prices were not different from third parties, net 30 to 90 days after month end close. Price negotiation adopted, credit on 120 days upon acceptance. The sales prices were not different from third parties, net 30 to 90 days after month end close. The purchase prices were not different from third parties, net 30 to 90 days after month end close. The sales prices were not different from third parties, net 30 to 90 days after month end close. The sales prices were not different from third parties, net 30 to 90 days after month end close. The purchase prices were not different from third parties, net 30 to 90 days after month end close.	0.18 4.99 0.65 0.96 0.63 15.05 0.59 0.08 2.69 0.59 0.30 12.45 0.50 0.04

Note 1: There are three categories of relationship between transaction, including:

No. 1 Represents transactions from parent company to subsidiaries.

No. 2 Represents transactions from subsidiaries to parent company.

No. 3 Represents transactions among subsidiaries.

Note 2: Written off at the time of preparing the consolidated financial report

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TABLE 11

CATCHER TECHNOLOGY CO., LTD. AND SUBSIDIARIES

STATEMENT OF CHANGES IN PROPERTY, PLANT AND EQUIPMENT FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Cost Balance at January 1, 2022 Additions Disposals Reclassifications Disposals of subsidiaries Effects of foreign currency exchange differences Balance at December 31, 2022 Accumulated depreciation and impairment Balance at January 1, 2022 Depreciation expense Disposals Reclassifications Disposals of subsidiaries Impairment Loss Effects of foreign currency exchange differences Balance at December 31, 2022 Carrying amount at December 31, 2022 Cost Balance at January 1, 2023 Additions Disposals Reclassifications Disposals of subsidiaries Effects of foreign currency exchange differences Balance at December 31, 2023 Accumulated depreciation and impairment Balance at January 1, 2023 Depreciation expense Disposals Reclassifications Impairment Loss Effects of foreign currency exchange differences Balance at December 31, 2023 Carrying amount at December 31, 2023	Land $ 2,577,548 - - (712,166 ) - - $ 1,865,382 $ - - - - - - - $ - $ 1,865,382 $ 1,865,382 - - 133,135 - - $ 1,998,517 $ - - - - - - $ - $ 1,998,517	Buildings $ 15,919,559 28,074 - (19,575 ) - 200,836 $ 16,128,894 $ 6,343,048 760,008 - (691 ) - - 85,147 $ 7,187,512 $ 8,941,382 $ 16,128,894 8,732 - 115,406 - (220,107) $ 16,032,925 $ 7,187,512 697,250 - 628 - (120,843 ) $ 7,764,547 $ 8,268,378	Machinery and equipment $ 53,309,912 113,814 (1,138,756 ) 82,194 - (966,155) $ 51,401,009 $ 48,164,442 2,161,133 (1,003,607 ) - - (7,497 ) (1,030,878) $ 48,283,593 $ 3,117,416 $ 51,401,009 361,043 (1,610,588 ) 547,022 - (591,944 ) $ 50,106,542 $ 48,283,593 1,730,874 (1,602,110 ) - (2,587 ) (571,579 ) $ 47,838,191 $ 2,268,351	Transportation equipment F $ 151,685 39 (530 ) - - 1,475 $ 152,669 $ 138,110 10,813 (330 ) - - - 1,238 $ 149,831 $ 2,838 $ 152,669 174 (8,510 ) - - (1,430) $ 142,903 $ 149,831 2,666 (8,510 ) - - (1,426) $ 142,561 $ 342	urniture and fixtures $ 2,174,579 42,722 (5,625 ) 995 - 22,840 $ 2,235,511 $ 2,127,677 71,833 (5,625 ) - - - 19,806 $ 2,213,691 $ 21,820 $ 2,235,511 27,093 (8,025 ) - - (25,519) $ 2,229,060 $ 2,213,691 45,882 (8,025 ) - - (24,730 ) $ 2,226,818 $ 2,242	Miscellaneous equipment $ 3,778,489 233,570 (19,451 ) 1,318 (21,523 ) 37,774 $ 4,010,177 $ 3,270,148 360,408 (19,192 ) - (21,523 ) - 30,779 $ 3,620,620 $ 389,557 $ 4,010,177 85,849 (17,523 ) 7,068 - (45,699) $ 4,039,872 $ 3,620,620 241,775 (14,347 ) - - (42,808 ) $ 3,805,240 $ 234,632	Total $ 77,911,772 418,219 (1,164,362 ) (647,234 ) (21,523 ) (703,230) $ 75,793,642 $ 60,043,425 3,364,195 (1,028,754 ) (691 ) (21,523 ) (7,497 ) (893,908) $ 61,455,247 $ 14,338,395 $ 75,793,642 482,891 (1,644,646 ) 337,696 - (884,699 ) $ 74,549,819 $ 61,455,247 2,718,447 (1,632,992 ) 628 (2,587 ) (761,386) $ 61,777,357 $ 12,772,462

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TABLE 12

CATCHER TECHNOLOGY CO., LTD. AND SUBSIDIARIES

INFORMATION OF MAJOR SHAREHOLDERS DECEMBER 31, 2023

INFORMATION OF MAJOR SHAREHOLDERS DECEMBER 31, 2023
Name of Major Shareholder	Shares
	Number of Shares	Percentage of Ownership (%)
Taishin International Bank as Custodian for Cathay MSCI Taiwan ESG Sustainability High Dividend Yield ETF	44,756,000	6.57

Note 1: The information of major shareholders presented in this table is provided by the Taiwan Depository & Clearing Corporation based on the number of ordinary shares and preferred shares held by shareholders with ownership of 5% or greater, that have been issued without physical registration (including treasury shares) by the Company as of the last business day for the current quarter. The share capital in the consolidated financial statements may differ from the actual number of shares that have been issued without physical registration because of different preparation basis.
Note 2: If a shareholder delivers the shareholdings to the trust, the above information will be disclosed by the individual truster who opened the trust account. For shareholders who declare insider shareholdings with ownership greater than 10% in accordance with the Security and Exchange Act, the shareholdings include shares held by shareholders and those delivered to the trust over which shareholders have rights to determine the use of trust property. For information relating to insider shareholding declaration, please refer to Market Observation Post System.
82 -

AI assistant

CATCHER — Annual Report 2023

52109_rns_2023-12-14_5bb55199-5ce9-46f6-a9c4-c594e8db624b.pdf

Catcher Technology Co., Ltd. and Subsidiaries

DECLARATION OF CONSOLIDATION OF FINANCIAL STATEMENTS OF AFFILIATES

INDEPENDENT AUDITORS’ REPORT

Opinion

Basis for Opinion

Key Audit Matters

Other Matter

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements

Notice to Readers

CATCHER TECHNOLOGY CO., LTD. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2023, DECEMBER 31, 2022 AND JANUARY 1, 2022

CATCHER TECHNOLOGY CO., LTD. AND SUBSIDIARIES

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

CATCHER TECHNOLOGY CO., LTD. AND SUBSIDIARIES

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

CATCHER TECHNOLOGY CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY YEARS ENDED DECEMBER 31, 2023 AND 2022 (In Thousands of New Taiwan Dollars)

CATCHER TECHNOLOGY CO., LTD. AND SUBSIDIARIES

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

CATCHER TECHNOLOGY CO., LTD. AND SUBSIDIARIES

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

CATCHER TECHNOLOGY CO., LTD. AND SUBSIDIARIES

1. GENERAL INFORMATION

2. APPROVAL OF FINANCIAL STATEMENTS

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

d. Presentation reclassification

4. SUMMARY OF MATERIAL ACCOUNTING POLICIEY INFORMATION

e. Foreign currencies

f. Inventories

g. Investments in associates

1) Financial assets

a) Measurement categories

i. Financial assets at FVTPL

iv. Investments in equity instruments at FVTOCI

2) Equity instruments

3) Financial liabilities

b) Derecognition of financial liabilities

m. Revenue recognition

n. Leases

1) The Group as lessor

2) The Group as lessee

o. Borrowing costs

2) Retirement benefits

1) Current tax

5. MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

a. Write-down of inventories

b. Income taxes

6. CASH AND CASH EQUIVALENTS

8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME (FVTOCI)

b. Investments in debt instrument

9. FINANCIAL ASSETS AT AMORTIZED COST

10. CREDIT RISK MANAGEMENT FOR INVESTMENTS IN DEBT INSTRUMENTS

December 31, 2023

11. TRADE RECEIVABLES AND OTHER RECEIVABLES

a. Trade receivables

December 31, 2023

12. INVENTORIES

13. SUBSIDIARIES

14. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

15. PROPERTY, PLANT AND EQUIPMENT

16. LEASE ARRANGEMENTS

a. Right-of-use assets

b. Lease liabilities

c. Material lease-in activities and terms

d. Other lease information

17. INVESTMENT PROPERTIES

18. INTANGIBLE ASSETS

19. OTHER ASSETS

20. SHORT-TERM BORROWINGS

21. TRADE PAYABLES

22. OTHER LIABILITIES

23. RETIREMENT BENEFIT PLANS

a. Defined contribution plan

b. Defined benefit plans

24. EQUITY

2) Global depositary receipts

CATCHER Annual Report 2023