CHUN YU — Audit Report / Information 2022

Nov 11, 2022

CHUN YU WORKS & CO., LTD.

PARENT COMPANY ONLY FINANCIAL

STATEMENTS AND INDEPENDENT AUDITORS’

REPORT DECEMBER 31, 2022 AND 2021

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

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INDEPENDENT AUDITORS’ REPORT TRANSLATED FROM CHINESE

To the Board of Directors and Shareholders of Chun Yu Works & Co., Ltd.

Opinion

We have audited the accompanying parent company only balance sheets of Chun Yu Works & Co., Ltd. (the “Company”) as at December 31, 2022 and 2021, and the related parent company only statements of comprehensive income, of changes in equity and of cash flows for the years then ended, and notes to the parent company only financial statements, including a summary of significant accounting policies.

In our opinion, based on our audits and the reports of other auditors (please refer to the Other matter section), the accompanying parent company only financial statements present fairly, in all material respects, the financial position of the Company as at December 31, 2022 and 2021, and its financial performance and its cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for opinion

We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors’ responsibilities for the audit of the parent company only financial statements section of our report. We are independent of the Company 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. Base on our audits and reports of other auditors, we believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Company’s 2022 parent company only financial statements. These matters were addressed in the context of our audit of the parent company only financial statements as a whole and, in forming our opinion thereon, we do not provide a separate opinion on these matters.

Key audit matters for the Company’s 2022 parent company only financial statements are stated as follows:

Cut-off of revenue from export sales

Description

Refer to Note 4(29) for accounting policy on revenue recognition and Note 6(19) for details of operating revenue.

The Company derives its revenues from the sales of screws, nuts and wire rods, etc., and revenues from

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export sales account for a high percentage of total revenue. Export sales are recognized as revenues when control of the goods has been transferred according to the terms specified in the contracts. The revenue recognition requires that the products are delivered to the customer, the customer has full discretion over the products, and there is no unfulfilled obligation that could affect the customer’s acceptance over the products, but delivery time may vary for each sales transaction. The determination as to when products are transferred to customers involves manual process and judgement. Given that there is a risk of material misstatement from improper revenue recognition for transactions that occur near the balance sheet date and the transaction amounts are usually material to the financial statements, we considered the cut-off of revenue from export sales a key audit matter.

How our audit addressed the matter

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

1. Obtained an understanding and assessed the accounting policies on revenue recognition of export sales.

2. Obtained an understanding and assessed the internal controls over revenue recognition of export sales, and tested the effectiveness of internal controls including the delivery process and the timing of revenue recognition.

3. Performed cut-off tests on export sales transactions that took place during a certain period before and after the balance sheet date to ascertain whether sales revenues were recognized when control of goods has been transferred to the customer and revenues were recorded in the proper period.

Valuation of inventories

Description

Refer to Note 4(8) for accounting policy on inventory valuation, Note 5(2) for uncertainty of accounting estimates and assumptions in relation to inventory valuation, and Note 6(4) for details of inventories. As of December 31, 2022, the inventories and allowance for inventory valuation losses amounted NT$1,743,987 thousand and NT$30,852 thousand, respectively.

The Company is primarily engaged in the manufacture and sales of screws, nuts and wire rods, etc. Due to the market demand, technology innovation and other factors, there is a risk of inventories losing value or becoming obsolete. The inventories are measured at the lower of cost and net realisable value. For inventory over a certain age and individually identified as obsolete or slow-moving, the net realisable values are determined by management based on periodic inventory clearance information. Given that the net realisable value used when assessing the inventories individually identified as obsolete or slowmoving involves subjective judgement, we considered the valuation of inventories a key audit matter.

How our audit addressed the matter

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

1. Assessed the reasonableness of policies and procedures in relation to the provision of allowance for inventory valuation losses based on the accounting principles and our understanding of the nature of the business and the industry.

2. Obtained an understanding of the warehouse management processes, reviewed the annual physical

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inventory count plan and participated in the annual inventory count in order to evaluate the effectiveness of procedures used by the management to identify and control obsolete inventories.

1. Verified the appropriateness of net realisable value used in inventory valuation and the logic used in the inventory aging report to ascertain the reasonableness of allowance for inventory valuation losses.

Other matter - Reference to the reports of other auditors

We did not audit the financial statements of the investments accounted for using the equity method, Chun Yu Works (USA) Inc. and Pt Moon Lion Industries Indonesia, which were audited by other auditors. Therefore, our opinion expressed herein, insofar as it relates to the amounts included in respect of these associates, is based solely on the reports of the other auditors. The balance of these investments accounted for using the equity method amounted to NT$1,005,561 thousand and NT$860,716 thousand, constituting 10% and 9% of the total assets as at December 31, 2022 and 2021, respectively, and the share of profit recognized from subsidiaries, associates and joint ventures accounted for using the equity method amounted to NT$221,788 thousand and NT$264,076 thousand, constituting 42% and 38% of the total comprehensive income for the years then ended, respectively.

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

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

In preparing the parent company only financial statements, management is responsible for assessing the Company’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 Company 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 Company’s financial reporting process.

Auditors’ responsibilities for the audit of the parent company only financial statements

Our objectives are to obtain reasonable assurance about whether the parent company only financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Standards on Auditing of the Republic of China

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will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these parent company only financial statements.

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

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

2. 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 Company’s internal control.

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

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

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

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

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

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other

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matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

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

Lin, Tzu-Shu

Independent Accountants

Tien, Chung-Yu

PricewaterhouseCoopers, Taiwan

Republic of China

March 9, 2023

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

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

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CHUN YU WORKS & CO., LTD. PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2022 AND 2021

(Expressed in thousands of New Taiwan dollars)

Assets	Notes 6(1) 6(2) 6(3) 6(3) 6(3) and 7 7 6(26) 5(2) and 6(4) 7 6(5) 6(6) and 7 6(7), 7 and 8 6(8) 6(9) and 8 6(10) 6(26) 6(7) and 7 6(1) and 8	December 31, 2022 AMOUNT % $ 1,852,311 19 50,253 - 50,634 1 589,249 6 55,625 1 2,043 - 12,069 - - - 1,713,135 18 32,277 - 4,357,596 45 242,851 2 3,175,750 33 1,818,677 19 285 - 21,800 - 2,057 - 118,605 1 7,371 - 8,904 - - - 681 - 5,396,981 55 $ 9,754,577 100	December 31, 2021	December 31, 2021
		AMOUNT $ 1,852,311 50,253 50,634 589,249 55,625 2,043 12,069 - 1,713,135 32,277 4,357,596 242,851 3,175,750 1,818,677 285 21,800 2,057 118,605 7,371 8,904 - 681 5,396,981 $ 9,754,577	AMOUNT $ 248,232 51,358 103,956 1,098,685 169,307 25,786 8,551 9,741 2,380,772 39,033 4,135,421 377,084 3,047,566 1,850,334 597 22,715 2,731 157,746 9,635 6,557 7,361 681 5,483,007 $ 9,618,428	%
Current assets 1100 Cash and cash equivalents 1110 Financial assets at fair value through profit or loss - current 1150 Notes receivable, net 1170 Accounts receivable, net 1180 Accounts receivable - related parties 1200 Other receivables 1210 Other receivables - related parties 1220 Current income tax assets 130X Inventory 1410 Prepayments 11XX Total current assets Non-current assets 1517 Non-current financial assets at fair value through other comprehensive income 1550 Investments accounted for under equity method 1600 Property, plant and equipment 1755 Right-of-use assets 1760 Investment property - net 1780 Intangible assets 1840 Deferred income tax assets 1915 Prepayments for business facilities 1920 Guarantee deposits paid 1980 Other non-current financial assets 1990 Other non-current assets 15XX Total non-current assets 1XXX Total assets				3 1 1 11 2 - - - 25 -
				43
				4 32 19 - - - 2 - - - -
				57
				100

(Continued)

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CHUN YU WORKS & CO., LTD. PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2022 AND 2021

(Expressed in thousands of New Taiwan dollars)

Liabilities and Equity

December 31, 2022 December 31, 2021 Notes AMOUNT % AMOUNT % 6(11) $ 180,225 2 $ 932,549 10 6(19) 15,318 - 10,786 - 114,635 1 460,269 5 7 16,098 - 11,666 - 7 215,875 3 307,358 3 6(26) 6,377 - - - 6(8) 215 - 526 - 548,743 6 1,723,154 18 6(12) and 8 4,563,605 47 3,000,000 31 6(13) and 8 - - 590,000 6 6(26) 326,801 3 305,474 3 6(8) 54 - - - 6(14) 27,305 - 55,866 1 457 - 457 - 4,918,222 50 3,951,797 41 5,466,965 56 5,674,951 59 6(15) 3,021,627 31 2,877,740 30 6(6)(12)(15)(16) 477,923 5 222,103 2 6(5)(15)(17) 302,397 3 233,702 2 430,610 5 430,610 5 653,326 7 654,473 7 6(5)(6)(18) ( 331,076) ( 4) ( 207,956) ( 2 ) 6(15)(16) ( 267,195) ( 3) ( 267,195) ( 3 ) 4,287,612 44 3,943,477 41 9 $ 9,754,577 100 $ 9,618,428 100

Total current liabilities 2100 Short-term borrowings 2130 Current contract liabilities 2170 Accounts payable 2180 Accounts payable to related parties 2200 Other payables 2230 Current income tax liabilities 2280 Current lease liabilities 21XX Total current Liabilities Total non-current liabilities 2530 Bonds payable 2540 Long-term borrowings 2570 Deferred income tax liabilities 2580 Non-current lease liabilities 2640 Accrued pension liabilities 2645 Guarantee deposits received 25XX Total non-current liabilities 2XXX Total liabilities Equity Share capital 3110 Common stock 3200 Capital surplus Retained earnings 3310 Legal reserve 3320 Special reserve 3350 Unappropriated retained earnings 3400 Other equity interest 3500 Treasury stocks 3XXX Total equity Significant Contingent Liabilities and Unrecognized Contract Commitments 3X2X Total liabilities and equity

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

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CHUN YU WORKS & CO., LTD. PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME YEARS ENDED DECEMBER 31, 2022 AND 2021

(Expressed in thousands of New Taiwan dollars, except for earnings per share amounts)

Items

Year ended December 31 2022 2021 Notes AMOUNT % AMOUNT % 6(19) and 7 $ 5,478,958 100 $ 5,978,369 100 6(4)(10)(14)(24)(25) and 7 ( 4,917,013) ( 90) ( 5,286,688) ( 89) 561,945 10 691,681 11 6(10)(14)(24)(25), 7 and 12 ( 152,523) ( 3) ( 164,557) ( 3) ( 141,257) ( 2) ( 135,450) ( 2) ( 9,424) - ( 12,810) - 547 - ( 1,517) - ( 302,657) ( 5) ( 314,334) ( 5) 259,288 5 377,347 6 6(20) 4,974 - 91 - 6(2)(5)(9)(21) and 7 41,719 1 35,119 1 6(2)(22) and 12 74,840 1 42,754 1 6(8)(23) ( 82,024) ( 1) ( 58,546) ( 1) 6(6) 328,529 6 418,337 7 368,038 7 437,755 8 627,326 12 815,102 14 6(26) ( 89,823) ( 2) ( 70,372) ( 1) $ 537,503 10 $ 744,730 13 6(14) $ 22,532 1 ($ 11,730) - 6(5) ( 33,460) ( 1) 5,384 - 6(6) ( 46,529) ( 1) ( 21,259) - 6(26) ( 4,506) - 2,346 - 6(6)(18) 51,957 1 ( 29,712) ( 1) 6(18)(26) ( 327) - - - ($ 10,333) - ($ 54,971) ( 1) $ 527,170 10 $ 689,759 12 6(27) $ 1.93 $ 2.68 $ 1.81 $ 2.67

4000 Sales revenue 5000 Operating costs 5900 Net operating margin Operating expenses 6100 Selling expenses 6200 General and administrative expenses 6300 Research and development expenses 6450 Expected credit gain (losses) 6000 Total operating expenses 6900 Operating profit Non-operating income and expenses 7100 Interest income 7010 Other income 7020 Other gains and losses 7050 Finance costs 7070 Share of profit of associates and joint ventures accounted for using equity method, net 7000 Total non-operating income and expenses 7900 Profit before income tax 7950 Income tax expense 8200 Profit for the year Other comprehensive income (loss) Components of other comprehensive income (loss) that will not be reclassified to profit or loss 8311 Actuarial gain (losses) on defined benefit plans 8316 Unrealised (losses) gains from investments in equity instruments measured at fair value through other comprehensive income 8330 Share of other comprehensive loss of associates and joint ventures accounted for using equity method, components of other comprehensive income that will not be reclassified to profit or loss 8349 Income tax related to components of other comprehensive (loss) gain that will not be reclassified to profit or loss Components of other comprehensive income that will be reclassified to profit or loss 8361 Exchange differences on translation 8399 Aggregated income tax relating to components of other comprehensive (loss) income 8300 Total other comprehensive loss for the year, net of tax 8500 Total comprehensive income for the year Earnings per share(in dollars) 9750 Basic 9850 Diluted

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

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CHUN YU WORKS & CO., LTD. PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY YEARS ENDED DECEMBER 31, 2022 AND 2021

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

Year ended December 31, 2021 Balance at January 1, 2021 Profit for the year Other comprehensive loss for the year Total comprehensive income (loss) Distribution of 2020 net income: Legal reserve Cash dividends Distribution of first half of 2021 net income: Legal reserve Cash dividends Disposal of treasury stocks The Company's dividends received by subsidiaries Balance at December 31, 2021 Year ended December 31, 2022 Balance at January 1, 2022 Profit for the year Other comprehensive loss for the year Total comprehensive income Distribution of second half of 2021 net income: Legal reserve Cash dividends Share dividends Distribution of first half of 2022 net income: Legal reserve Cash dividends Proceeds from disposal of financial assets at fair value through other comprehensive income Proceeds from issuing convertible bonds The Company's dividends received by subsidiaries Balance at December 31, 2022	Notes		Share capital - common stock		Capital from retained rarnings		Retained Earnings	Retained Earnings	Retained Earnings	Retained Earnings	Other equity interest	Other equity interest	Treasury stocks		Amount
							Legal reserve	Special reserve		Unappropriated retained earnings	Financial statements translation differences of foreign operations	Unrealised gains (losses) from financial assets measured at fair value through other comprehensive income
	6(6)(18) 6(17) 6(17) 6(15)(16) 6(6)(15)(16) 6(6)(18) 6(17) 6(15)(17) 6(17) 6(5)(18) 6(12)(16) 6(6)(15)(16)		$ 2,877,740 - - - - - - - - - $ 2,877,740 $ 2,877,740 - - - - - 143,887 - - - - - $ 3,021,627		$ 157,969 - - - - - - - 38,679 25,455 $ 222,103 $ 222,103 - - - - - - - - - 221,790 34,030 $ 477,923		$ 179,531 - - - 18,418 - 35,753 - - - $ 233,702 $ 233,702 - - - 37,754 - - 30,941 - - - - $ 302,397		$ 430,610 - - - - - - - - - $ 430,610 $ 430,610 - - - - - - - - - - - $ 430,610	$ 290,127 744,730 ( 9,662 ) 735,068 ( 18,418 ) ( 172,664 ) ( 35,753 ) ( 143,887 ) - - $ 654,473 $ 654,473 537,503 27,919 565,422 ( 37,754 ) ( 287,774 ) ( 143,887 ) ( 30,941 ) ( 151,081 ) 84,868 - - $ 653,326	($ 185,009 ) - ( 29,712 ) ( 29,712 ) - - - - - - ($ 214,721 ) ($ 214,721 ) - 51,630 51,630 - - - - - - - - ($ 163,091 )	$ 22,362 - ( 15,597 ) ( 15,597 ) - - - - - - $ 6,765 $ 6,765 - ( 89,882 ) ( 89,882 ) - - - - - ( 84,868 ) - - ($ 167,985 )	($ 288,910 ) - - - - - - - 21,715 - ($ 267,195 ) ($ 267,195 ) - - - - - - - - - - - ($ 267,195 )	$ 3,484,420 744,730 ( 54,971 ) 689,759 - ( 172,664 ) - ( 143,887 ) 60,394 25,455 $ 3,943,477 $ 3,943,477 537,503 ( 10,333 ) 527,170 - ( 287,774 ) - - ( 151,081 ) - 221,790 34,030 $ 4,287,612

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

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CHUN YU WORKS & CO., LTD. PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2022 AND 2021

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax Adjustments Adjustments to reconcile profit (loss) Net loss (gain) on financial assets at fair value through profit or loss Expected credit (gains) losses Allowance for (reversal of ) inventory market price decline Share of profit of subsidiaries, associates and joint ventures accounted for using the equity method Depreciation Loss on disposal of property, plant and equipment Losses from lease modification Amortization Interest income Dividends income Interest expense Changes in operating assets and liabilities Changes in operating assets Financial assets at fair value through profit or loss - current Notes receivable Accounts receivable Accounts receivable from related parties Other receivables Other receivables from related parties Inventories Prepayments Changes in operating liabilities Current contract liabilities Accounts payable Accounts payable to related parties Other payables Net defined benefit liabilities - non-current Cash inflow (outflow) generated from operations Interest received Dividend received Interest paid Income tax paid Net cash flows from (used in) operating activities

YearendedDecember 31 Notes 2022 2021 $ 627,326 $ 815,102 14,920 ( 5,493 ) 12 ( 547 ) 1,517 6(4) 14,906 ( 4,323 ) 6(6) ( 328,529 ) ( 418,337 ) 6(7)(8)(9) 113,079 109,869 6(22) 2,735 3,068 6(8)(22) 32 - 6(10)(24) 1,149 1,472 6(20) ( 4,974 ) ( 91 ) 6(21) ( 15,645 ) ( 14,798 ) 6(23) 82,024 58,546 ( 10,466 ) 55,461 53,322 ( 52,210 ) 509,983 ( 628,244 ) 113,682 ( 74,070 ) 23,743 ( 17,865 ) ( 3,518 ) ( 2,949 ) 652,731 ( 875,938 ) 1,474 ( 10,292 ) 4,532 ( 2,916 ) ( 345,634 ) 345,644 4,432 ( 3,011 ) ( 83,928 ) 123,778 ( 6,029 ) ( 20 ) 1,420,800 ( 596,100 ) 4,974 91 255,448 133,420 ( 71,292 ) ( 55,080 ) ( 18,070 ) ( 5,865 ) 1,591,860 ( 523,534 )

(Continued)

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CHUN YU WORKS & CO., LTD. PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2022 AND 2021

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from disposal of financial assets at fair value through other comprehensive income Return of capital from financial assets at fair value through other comprehensive income Acquisition of investment accounted for using the equity method-subsidiaries Cash paid for acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Acquisition of intangible assets Increase in prepayments for business facilities (Increase) decrease in guarantee deposits paid Decrease in other non-current financial assets Net cash flows from (used in) investing activities CASH FLOWS FROM FINANCING ACTIVITIES Decrease in short-term borrowings Payments of lease liabilities Increase in ordinary bonds payable Increase in convertible bonds payable Increase in long-term borrowings Decrease in long-term borrowings Decrease in guarantee deposits received Payments of cash dividends Net cash flows (used in) from financing activities Net increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year

YearendedDecember 31 Notes 2022 2021 6(5) $ 100,773 $ - 6(5) - 141 6(6) - ( 135,040 ) 6(28) ( 74,946 ) ( 53,694 ) 2,000 - 6(10) ( 475 ) ( 919 ) ( 14,409 ) ( 40,195 ) ( 2,347 ) 1,658 7,361 8,539 17,957 ( 219,510 ) 6(29) ( 752,324 ) ( 61,849 ) 6(29) ( 433 ) ( 940 ) 6(29) - 3,000,000 6(29) 1,775,874 - 6(29) - 9,310,000 6(29) ( 590,000 ) ( 11,060,000 ) 6(29) - ( 107 ) 6(17) ( 438,855 ) ( 316,551 ) ( 5,738 ) 870,553 1,604,079 127,509 6(1) 248,232 120,723 6(1) $ 1,852,311 $ 248,232

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

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CHUN YU WORKS & CO., LTD. NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2022 AND 2021

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

1. History and Organization

(1) Chun Yu Works & Co., Ltd. (the “Company”) was incorporated as a company limited by shares under the provisions of the Company Act and other related regulations in March 1965. The Company is primarily engaged in the manufacture and heat treatment of screws, nuts and polished steel bars as well as design of pollution prevention equipment and undertaking related services.

• (2) The Company’s shares have been listed on the Taiwan Stock Exchange since October 1991.

• The Date of Authorisation for Issuance of the Financial Statements and Procedures for Authorisation

These parent company only financial statements were authorised for issuance by the Board of Directors on March 9, 2023.

3. Application of New Standards, Amendments and Interpretations

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

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

(2)	New Standards,Interpretations andAmendments

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

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

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

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

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

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

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

4. Summary of Significant Accounting Policies

The principal accounting policies applied in the preparation of these parent company only financial statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

(1) Compliance statement

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

(2) Basis of preparation

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

• (a) Financial assets at fair value through profit or loss.

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

• (c) Defined benefit liabilities recognized based on the net amount of pension fund assets less

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present value of defined benefit obligation.

• B. The preparation of parent company only financial statements in conformity with International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations asendorsed by the FSC (collectively referred herein as the “ IFRSs ” ) requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Company’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the parent company only financial statements are disclosed in Note 5. Critical accounting judgements, estimates and key sources of assumption uncertainty’.

• (3) Foreign currency translation

The Company’s entities are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The parent company only financial statements are presented in New Taiwan dollars, which is the Company’s functional and presentation currency. Foreign currency transactions and balances

• A. Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions are recognized in profit or loss in the period in which they arise.

• B. Monetary assets and liabilities denominated in foreign currencies at the period end are re-translated at the exchange rates prevailing at the balance sheet date. Exchange differences arising upon retranslation at the balance sheet date are recognized in profit or loss.

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

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

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

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

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

  • (b) Assets held mainly for trading purposes;

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

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

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

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

• (b) Liabilities arising mainly from trading activities;

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

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

(5) Cash equivalents

• A. Cash equivalents refer to short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

• B. Time deposits that meet the definition above and are held for the purpose of meeting short-term cash commitments in operations are classified as cash equivalents.

• (6) Financial assets at fair value through profit or loss

• A. Financial assets at fair value through profit or loss are financial assets that are not measured at amortised cost or fair value through other comprehensive income.

• B. On a regular way purchase or sale basis, financial assets at fair value through profit or loss are recognized and derecognized using trade date accounting.

• C. At initial recognition, the Company measures the financial assets at fair value and recognizes the transaction costs in profit or loss. The Company subsequently measures the financial assets at fair value, and recognizes the gain or loss in profit or loss.

• D. The Company recognizes the dividend income when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Company and the amount of the dividend can be measured reliably.

(7) Accounts and notes receivable

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

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

(8) Inventories

Inventories are stated at the lower of cost and net realisable value. Cost is determined using the weighted-average method. The cost of finished goods and work in progress comprises raw materials, direct labour, other direct costs and related production overheads (allocated based on normal operating capacity). It excludes borrowing costs. The item by item approach is used in applying the

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lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated cost of completion and applicable variable selling expenses.

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

• A. Financial assets at fair value through other comprehensive income comprise equity securities which are not held for trading, and for which the Company has made an irrevocable election at initial recognition to recognize changes in fair value in other comprehensive income and debt instruments which meet all of the following criteria:

  • (a) The objective of the Company’s business model is achieved both by collecting contractual cash flows and selling financial assets; and

  • (b) The assets’ contractual cash flows represent solely payments of principal and interest.

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

• C. At initial recognition, the Company measures the financial assets at fair value plus transaction costs. The Company subsequently measures the financial assets at fair value: The changes in fair value of equity investments that were recognized in other comprehensive income are reclassified to retained earnings and are not reclassified to profit or loss following the derecognition of the investment. Dividends are recognized as revenue when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Company and the amount of the dividend can be measured reliably.

• (10) Impairment of financial assets

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

(11) Derecognition of financial assets

• The Company derecognizes a financial asset when one of the following conditions is met:

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

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

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

(12) Investments accounted for using the equity method / subsidiaries

• A. Subsidiaries are all entities (including structured entities) controlled by the Company. The Company controls an entity when the Company is exposed, or has rights, to variable returns from

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its involvement with the entity and has the ability to affect those returns through its power over the entity.

• B. Unrealised profit (loss) from the transactions between the Company and subsidiaries have been offset. The accounting policies of the subsidiaries have been adjusted to be consistent with the Company’s accounting policies.

• C. The Company’s share of its subsidiaries’ post-acquisition profits or losses is recognized in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognized in other comprehensive income. When the Company’s share of losses in a subsidiary equals or exceeds its interest in the subsidiary, the Company continues to recognize losses proportionate to its ownership.

• D. If changes in the Company’s shares in subsidiaries do not result in loss in control (transactions with non-controlling interest), transactions shall be considered as equity transactions, which are transactions between owners. Difference of adjustment of non-controlling interest and fair value of consideration paid or received is recognized in equity.

• E. Pursuant to the Regulations Governing the Preparation of Financial Reports by Securities Issuers, profit (loss) of the current period and other comprehensive income in the parent company only financial statements shall be equal to the amount attributable to owners of the parent in the consolidated financial statements. Owners’ equity in the parent company only financial statements shall be equal to equity attributable to owners of the parent in the consolidated financial statements.

(13) Property, plant and equipment

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

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

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

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

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Assets Useful lives
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Assets	Useful lives
Buildings and structures:
Main building of plant	3 ~ 51 years
Others	3 ~ 15 years
Machinery and equipment	3 ~ 22 years
Utilities equipment	5 ~ 20 years
Transportation equipment	3 ~ 9 years
Office equipment	3 ~ 13 years
Other equipment	2 ~ 15 years

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

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

• B. Lease liabilities include the net present value of the remaining lease payments at the commencement date, discounted using the incremental borrowing interest rate. Lease payments are comprised of the following:

• (a) Fixed payments, less any lease incentives receivable;

• (b) Payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option.

The Company subsequently measures the lease liability at amortised cost using the interest method and recognizes interest expense over the lease term. The lease liability is remeasured and the amount of remeasurement is recognized as an adjustment to the right-of-use asset when there are changes in the lease term or lease payments and such changes do not arise from contract modifications.

• C. At the commencement date, the right-of-use asset is stated at cost comprising the following:

• (a) The amount of the initial measurement of lease liability;

• (b) Any lease payments made at or before the commencement date;

• (c) Any initial direct costs incurred by the lessee.

The right-of-use asset is measured subsequently using the cost model and is depreciated from the commencement date to the earlier of the end of the asset’s useful life or the end of the lease term. When the lease liability is remeasured, the amount of remeasurement is recognized as an adjustment to the right-of-use asset.

(15) Investment property

An investment property is stated initially at its cost and measured subsequently using the cost model. Except for land, investment property is depreciated on a straight-line basis over its estimated useful life of 10 ~ 40 years.

(16) Intangible assets

Computer software is stated at cost and amortised on a straight-line basis over its estimated useful

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life of 3 to 5 years.

(17) Impairment of non-financial assets

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

(18) Borrowings

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

• B. Fees paid on the establishment of loan facilities are recognized as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a pre-payment for liquidity services and amortised over the period of the facility to which it relates.

(19) Notes and accounts payable

• A. Accounts payable are liabilities for purchases of raw materials, goods or services and notes payable are those resulting from operating and non-operating activities.

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

• (20) Bonds payable

• Ordinary corporate bonds issued by the Company are initially recognized at fair value less transaction costs. Any difference between the proceeds (net of transaction costs) and the redemption value is presented as an addition to or deduction from bonds payable, which is amortised to profit or loss over the period of bond circulation using the effective interest method as an adjustment to ‘finance costs’.

(21) Convertible bonds payable

• Convertible bonds or issued by the Company contain conversion options (that is, the bondholders have the right to convert the bonds into the Company’ s common shares by exchanging a fixed amount of cash for a fixed number of common shares), call options and put options. The Company classifies the bonds payable upon issuance as a financial asset, a financial liability or an equity instrument in accordance with the contract terms. They are accounted for as follows:

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• (a)The embedded call options and put options are recognised initially at net fair value as ‘ financial assets or financial liabilities at fair value through profit or loss’. They are loss is recognised as ‘gain or loss on valuation of financial assets or financial liabilities at fair value through profit or loss’.

• (b)The host contracts of bonds or are initially recognised at fair value. Any difference between the initial recognition and the redemption value is accounted for as the premium or discount on bonds payable or and subsequently is amortised in profit or loss as an adjustment to ‘finance costs’ over the period of circulation using the effective interest method.

• (c)The embedded conversion options which meet the definition of an equity instrument are initially recognised in ‘capital surplus—share options’ at the residual amount of total issue price less the amount of financial assets or financial liabilities at fair value through profit or loss and bonds payable or as stated above. Conversion options are not subsequently remeasured.

• (d)Any transaction costs directly attributable to the issuance are allocated to each liability or equity component in proportion to the initial carrying amount of each abovementioned item.

• (e)When bondholders exercise conversion options, the liability component of the bonds (including bonds payable or and ‘ financial assets or financial liabilities at fair value through profit or loss’) shall be remeasured on the conversion date. The issuance cost of converted common shares is the total book value of the abovementioned liability component and ‘capital surplus—share options’.

• (22) Derecognition of financial liabilities

• A financial liability is derecognized when the obligation specified in the contract is either discharged or cancelled or expires.

(23) Offsetting financial instruments

Financial assets and liabilities are offset and reported in the net amount in the balance sheet when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously.

(24) Provisions

Provisions (the estimated warranties) are recognized when the Company has a present legal or constructive obligation as a result of past events, and it is probable that an outflow of economic resources will be required to settle the obligation and the amount of the obligation can be reliably estimated. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation on the balance sheet date, which is discounted using a pre-tax discount rate that reflects the current market assessments of the time value of money and the risks specific to the obligation. When discounting is used, the increase in the provision due to passage of time is recognized as interest expense. Provisions are not recognized for future operating losses.

(25) Employee benefits

A. Short-term employee benefits

Short-term employee benefits are measured at the undiscounted amount of the benefits expected

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to be paid in respect of service rendered by employees in a period and should be recognized as expense in that period when the employees render service.

• B. Pensions

• (a) Defined contribution plan

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

• (b) Defined benefit plan

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

  • ii. Remeasurements arising on defined benefit plan are recognized in other comprehensive income in the period in which they arise and are recorded as retained earnings.

  • iii.Past service costs are recognized immediately in profit or loss.

• C. Termination benefits

• Termination benefits are employee benefits provided in exchange for the termination of employment as a result from either the Company’s decision to terminate an employee’s employment before the normal retirement date, or an employee’s decision to accept an offer of redundancy benefits in exchange for the termination of employment. The Company recognizes expense when it can no longer withdraw an offer of termination benefits or when it recognizes related restructuring costs, whichever is earlier. Benefits that are expected to be due more than 12 months after balance sheet date shall be discounted to their present value.

• D. Employees’ compensation and directors’ remuneration

• Employees’ compensation and directors’ remuneration are recognized as expense and liability, provided that such recognition is required under legal or constructive obligation and those amounts can be reliably estimated. Any difference between the resolved amounts and the subsequently actual distributed amounts is accounted for as changes in estimates. If employee compensation is paid by shares, the Company calculates the number of shares based on the closing price at the previous day of the board meeting resolution.

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(26) Income tax

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

• B. The current income tax expense is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date. Management periodically evaluates positions taken in tax returns with respect to situations in accordance with applicable tax regulations. It establishes provisions where appropriate based on the amounts expected to be paid to the tax authorities. An additional tax is levied on the unappropriated retained earnings of the Company and is recorded as income tax expense in the year the stockholders resolve to retain the earnings.

• C. Deferred tax is recognized, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the parent company only balance sheet. However, the deferred tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred tax is provided on temporary differences arising on investments in subsidiaries, except where the timing of the reversal of the temporary difference is controlled by the Company and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled.

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

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

(27) Share capital

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

• B. Where the Company repurchases the Company’s equity share capital that has been issued, the consideration paid, including any directly attributable incremental costs (net of income taxes) is deducted from equity attributable to the Company’s equity holders. Where such shares are

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subsequently reissued, the difference between their book value and any consideration received, net of any directly attributable incremental transaction costs and the related income tax effects, is included in equity attributable to the Company’s equity holders.

(28) Dividends

Cash dividends are recorded as liabilities in the Company’s financial statements in the period in which they are resolved by the Company’s the Board of Directors. Stock dividends are recorded as stock dividends to be distributed after they are approved by the Company’s shareholders and are reclassified to ordinary shares on the effective date of new shares issuance.

(29) Revenue recognition

Sales of goods

• A. Sales are recognized when control of the products has transferred, being when the products are delivered to the customer, the customer has full discretion over the products, and there is no unfulfilled obligation that could affect the customer’s acceptance of the products.

• B. Revenue from these sales is recognized based on the price specified in the contract, net of the estimated output tax as well as sales returns and allowances, and revenue is only recognized to the extent that it is highly probable that a significant reversal will not occur. The estimation is subject to an assessment at each reporting date. The credit terms for general sales are 2 months.

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

(30) Government grants

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

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

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

(1) Critical judgements in applying the Company’s accounting policies

• None.

(2) Critical accounting estimates and assumptions

• Valuation of inventories

• A. As inventories are stated at the lower of cost and net realisable value, the Company must

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determine the net realisable value of inventories on balance sheet date using judgements and estimates. Due to the market demand and technology innovation, the Company evaluates the amounts of normal inventory consumption, obsolete inventories or inventories without market selling value on balance sheet date, and writes down the cost of inventories to the net realisable value. Such valuation of inventories is principally based on the demand for the products within the specified period in the future. Therefore, there might be material changes to the valuation.

• B. As of December 31, 2022, the carrying amount of inventories was $1,713,135.

6. Details of Significant Accounts

(1) Cash and cash equivalents

Cash: Cash on hand Checking accounts Demand deposits Cash equivalents: Time deposits	December31,2022 64 $ 106 522,141 522,311 $ 1,330,000 1,852,311 $	December31,2021 50 $ 123 248,059
		248,232 $
		-
		248,232 $

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

• －

• B. As of December 31, 2022 and 2021, the Company’s demand deposits amounting to $ and $7,361, respectively, were pledged to others as collateral (Shown as ‘Other non-current financial assets’). Details are provided in Note 8, ‘Pledged assets’.

(2) Financial assets at fair value through profit or loss – current

assets’). Details are provided in Note 8, ‘Pledged assets’. Financial assets at fair value through profit or loss–current
Items December31,2022 Financial assets mandatorily measured at fair value through profit or loss Listed stocks 38,848 $ Beneficiary certificates 13,000 51,848 Valuation adjustment 1,595) ( 50,253 $	December31,2021
	30,033 $ 8,000
	38,033 13,325
	51,358 $

• A. The Company recognized net gain amounting to $60,687 and $53,396 (shown as ‘Other income’ and ‘Other gains and losses’) on financial assets at fair value through profit or loss for the years ended December 31, 2022 and 2021, respectively.

• B. As of December 31, 2022 and 2021, the Company had no financial assets at fair value through profit or loss pledged to others as collateral.

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• C. Information relating to credit risk of financial assets at fair value through profit or loss is provided in Note 12(2) , ‘Financial instruments’.

• (3) Notes and accounts receivable, net

in Note 12(2) , ‘Financial instruments’. Notes and accounts receivable, net
		December	31,2022		December31,2021
Notes receivable		$	50,634		$	103,956
Accounts receivable		$	590,609		$	1,101,525
Less: Allowance for uncollectible accounts	(		1,360)	(		2,840)
		$	589,249		$	1,098,685

• A. The ageing analysis of notes receivable and accounts receivable (including related parties) that were past due but not impaired is as follows:

Not past due Up to 30 days past due 31~90 days past due Over 181 days	December	Accounts receivable 627,417 $ 15,930 2,116 771 646,234 $ 31, 2022	December31,2021
	Notes receivable 50,634 $ - - - 50,634 $		Notes Accounts receivable receivable 103,956 $ 1,184,191 $ - 80,039 - 5,670 - 932 103,956 $ 1,270,832 $

The above ageing analysis was based on past due date.

• B. As of December 31, 2022 and 2021, notes receivable and accounts receivable were all from contracts with customers. Also, as of January 1, 2021, the balance of receivables (including related parties) from contracts with customers amounted to $620,264.

• C. As of December 31, 2022 and 2021, the Company did not hold any collateral as security for accounts receivable.

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

• E. Information relating to credit risk of notes receivable and accounts receivable is provided in Note 12(2) , ‘Financial instruments’.

• F. As of December 31, 2022 and 2021, the Company had no notes receivable and accounts receivable pledged to others.

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(4) Inventories

Inventories
Raw materials Supplies Work in progress Finished goods Raw materials Supplies Work in progress Finished goods	Allowance for inventory Cost valuation loss 535,330 $ 4,273) ($ 193,720 1,150) ( 390,862 6,128) ( 624,075 19,301) ( 1,743,987 $ 30,852) ($ December31,2022 Allowance for inventory Cost valuation loss 1,058,726 $ 34) ($ 162,187 1,080) ( 527,848 169) ( 647,957 14,663) ( 2,396,718 $ 15,946) ($ December31,2021	Bookvalue 531,057 $ 192,570 384,734 604,774
		1,713,135 $ Bookvalue
		1,058,692 $ 161,107 527,679 633,294
		2,380,772 $

A. The cost of inventories recognized as expense for the year:

			For the years ended	For the years ended	For the years ended	December 31
			2022			2021
Cost of goods sold		$	4,929,107		$	5,327,089
Loss on decline in market value			14,906	(		4,323)
(gain from price recovery)(Note)
Revenue from sales of scraps	(		27,000)	(		36,078)
		$	4,917,013		$	5,286,688

(Note) The Company reversed a previous inventory write-down which was accounted for as reduction of cost of goods sold because of sale and scrap of inventories written down during the previous years for the year ended December 31, 2021.

B. As of December 31, 2022 and 2021, the Company had no inventories pledged to others.

(5) Financial assets at fair value through other comprehensive income – non-current

Items December31,2022 Equity instruments Listed stocks 272,201 $ Unlisted stocks 772 272,973 Valuation adjustment 30,122) ( 242,851 $	December31,2021
	288,106 $ 772
	288,878 88,206
	377,084 $

A. The Company has elected to classify equity investments that are considered to be steady dividend

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income as financial assets at fair value through other comprehensive income. The fair value of such investments amounted to $242,851 and $377,084 as at December 31, 2022 and 2021, respectively.

• B. The Company received proceeds from capital reduction of the Company’s stock investment - Ascentek Venture Capital Corporation, classified as financial asset measured at fair value through other comprehensive income. The Company received remaining proceeds from settlement in the amount of $141 for the year ended December 31, 2021, and recognized share dividend income of $893 (shown as “Other income”).

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

		Forthe years ended	Forthe years ended	December	31
		2022		2021
Equity instruments at fair value through other
comprehensive income
Fair value change recognized in other
comprehensive income (shown as ‘Other equity’)	($	33,460)	$		5,384
Cumulative gains (losses) reclassified to retained
earnings due to derecognition	$	84,868	$		-
Dividend income recognized in profit or loss
(shown as ‘Other income’)	$	13,019	$	12,586

• D. As at December 31, 2022 and 2021, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the financial assets at fair value through other comprehensive income held by the Company was the carrying amount.

• E. Information relating to credit risk of non-current financial assets at fair value through other comprehensive income is provided in Note 12(2), ‘Financial instruments’.

• F. The Company had no financial assets at fair value through other comprehensive income pledged to others.

(6) Investments accounted for using the equity method

• A. Movements in investments accounted for using the equity method are as follows:

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B. The debit balance of investments accounted for using the equity method are listed below: 2022 2021 At January 1 3,047,566 $ 2,577,933 $ Addition of investments accounted for using the equity method - 135,040 Share of profit of subsidiaries, associates and joint ventures accounted for using the equity method 328,529 418,337 Cash dividends from investments accounted for using the equity method 239,803) ( 118,622) ( Adjustments of capital surplus for the Company’s cash dividends received by subsidiaries 34,030 25,455 Disposal of treasury stocks held by subsidiaries - 60,394 Share of other comprehensive income of subsidiaries, associates and joint ventures accounted for using the equity method 46,529) ( 21,259) ( Exchange differences on translation of foreign financial statements 51,957 29,712) ( At December 31 3,175,750 $ 3,047,566 $ For theyears ended December31 December 31, 2022 December31,2021 CHUN BANG PRECISION CO., LTD. 184,611 $ 199,514 $ CHUN YU WORKS (USA) INC. 363,602 283,422 CHUN YU INVESTMENT CO., LTD. 101,198 139,118 CHUN YU BIO-TECH CORP. 127,117 136,172 SCHOLAR HOLDINGS LTD. 1,019,768 1,000,185 SUNNY CITY INTERNATIONAL LIMITED 253,160 256,443 PT MOON LION INDUSTRIES INDONESIA 641,959 577,294 CHUN ZU MACHINERY INDUSTRY CO., LTD. 484,335 455,418 3,175,750 $ 3,047,566 $
		2022
			listed below: 2,577,933 $ 135,040 418,337 118,622) ( 25,455 60,394 21,259) ( 29,712) ( 3,047,566 $ December31,2021 199,514 $ 283,422 139,118 136,172 1,000,185 256,443 577,294 455,418 3,047,566 $

• C. Details of the Company’s subsidiaries are provided in Note 4(3) of the Company’s 2022 consolidated financial statements.

• D. For the year ended December 31, 2021, the Company increased its investments in the subsidiaries, Chun Bang Precision Co., Ltd. and Chun Yu Bio-Tech Corp., in the amounts of $105,000 and $30,040, respectively.

• E. As of December 31, 2022 and 2021, the Company had no investments accounted for using the equity method pledged to others.

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(7) Property, plant and equipment

January 1, 2022 Cost Accumulated depreciation 2022 At January 1 Additions Transfers after acceptance Transfers from prepayments for business facilities Depreciation charge Disposals - Cost - Accumulated depreciation At December 31 December 31, 2022 Cost Accumulated depreciation	Land 1,266,245 $ - 1,266,245 $ 1,266,245 $ - - - - - - 1,266,245 $ 1,266,245 $ - 1,266,245 $	Equipment under acceptance and Buildings and Machinery and Utilities Transportation Office Other construction in structures equipment equipment equipment equipment equipment progress Total 967,699 $ 2,412,569 $ 73,923 $ 47,414 $ 73,031 $ 176,261 $ 14,129 $ 5,031,271 $ 756,376) ( 2,109,959) ( 59,543) ( 38,192) ( 66,915) ( 149,952) ( - 3,180,937) ( 211,323 $ 302,610 $ 14,380 $ 9,222 $ 6,116 $ 26,309 $ 14,129 $ 1,850,334 $ 211,323 $ 302,610 $ 14,380 $ 9,222 $ 6,116 $ 26,309 $ 14,129 $ 1,850,334 $ 9,535 50,248 238 1,260 963 5,163 707 68,114 890 19,209 - - - - 20,099) ( - - 6,415 - - - - 10,258 16,673 29,023) ( 65,576) ( 2,910) ( 4,030) ( 2,592) ( 7,578) ( - 111,709) ( 5,980) ( 39,223) ( - - 23,203) ( 39) ( - 68,445) ( 4,652 35,816 - - 23,203 39 - 63,710 191,397 $ 309,499 $ 11,708 $ 6,452 $ 4,487 $ 23,894 $ 4,995 $ 1,818,677 $ 972,144 $ 2,449,218 $ 74,161 $ 48,674 $ 50,791 $ 181,385 $ 4,995 $ 5,047,613 $ 780,747) ( 2,139,719) ( 62,453) ( 42,222) ( 46,304) ( 157,491) ( - 3,228,936) ( 191,397 $ 309,499 $ 11,708 $ 6,452 $ 4,487 $ 23,894 $ 4,995 $ 1,818,677 $	Total
			1,818,677 $

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January 1, 2021 Cost Accumulated depreciation 2021 At January 1 Additions Transfers after acceptance Transfers from prepayments for business facilities Depreciation charge Disposals - Cost - Accumulated depreciation At December 31 December 31, 2021 Cost Accumulated depreciation	Land 1,266,245 $ - 1,266,245 $ 1,266,245 $ - - - - - - 1,266,245 $ 1,266,245 $ - 1,266,245 $	Equipment under acceptance and Buildings and Machinery and Utilities Transportation Office Other construction in structures equipment equipment equipment equipment equipment progress Total 953,130 $ 2,373,898 $ 72,963 $ 47,063 $ 71,717 $ 155,748 $ 8,411 $ 4,949,175 $ 731,360) ( 2,055,672) ( 56,773) ( 33,634) ( 64,251) ( 144,698) ( - 3,086,388) ( 221,770 $ 318,226 $ 16,190 $ 13,429 $ 7,466 $ 11,050 $ 8,411 $ 1,862,787 $ 221,770 $ 318,226 $ 16,190 $ 13,429 $ 7,466 $ 11,050 $ 8,411 $ 1,862,787 $ 1,906 17,884 960 351 195 13,409 27,405 62,110 11,683 13,364 - - 1,480 - 26,527) ( - 1,170 22,857 - - 370 7,436 4,840 36,673 25,188) ( 66,671) ( 2,770) ( 4,558) ( 3,395) ( 5,586) ( - 108,168) ( 190) ( 15,434) ( - - 731) ( 332) ( - 16,687) ( 172 12,384 - - 731 332 - 13,619 211,323 $ 302,610 $ 14,380 $ 9,222 $ 6,116 $ 26,309 $ 14,129 $ 1,850,334 $ 967,699 $ 2,412,569 $ 73,923 $ 47,414 $ 73,031 $ 176,261 $ 14,129 $ 5,031,271 $ 756,376) ( 2,109,959) ( 59,543) ( 38,192) ( 66,915) ( 149,952) ( - 3,180,937) ( 211,323 $ 302,610 $ 14,380 $ 9,222 $ 6,116 $ 26,309 $ 14,129 $ 1,850,334 $	Total
			1,850,334 $

~31~

• A. The Company’s property, plant and equipment as of December 31, 2022 and 2021 are for its own use.

• B. No interest expense was capitalised in property, plant and equipment for the years ended December 31, 2022 and 2021.

• C. Information about the property, plant and equipment that were pledged to others as collateral as of December 31, 2022 and 2021 is provided in Note 8, ‘Pledged assets’.

• －

• (8) Lease transactions lessee

• A. The Company leases various assets including business vehicles. Rental contracts are typically made for periods of 1 to 3 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose covenants.

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

Transportation equipment Transportation equipment	December31,2022 December31,2021 Carryingamount Carrying amount 285 $ 597 $ Forthe years endedDecember31	December31,2021
		Carrying amount
		597 $
	2022 Depreciationcharge 455 $	2021
		Depreciationcharge
		937 $

• C. For the years ended December 31, 2022 and 2021, the additions to right-of-use assets were $143 －

• and $ , respectively.

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

Items affecting profit or loss Interest expense on lease liabilities Expense on leases of low-value assets Losses from lease modification	2022 2021 6 $ 19 $ 1,447 1,124 32 - For theyears ended December31	2022 2021 6 $ 19 $ 1,447 1,124 32 - For theyears ended December31
		19 $ 1,124 -

• E. For the years ended December 31, 2022 and 2021, the Company’s total cash outflow for leases were $1,886 and $2,083, respectively.

• F. As of December 31, 2022 and 2021, the Company had no right-of-use assets pledged to others.

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(9) Investment property, net

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

2022 Land Buildings and structures Total
At January 1
Cost $ 19,303 $ 24,411 $ 43,714
Accumulated depreciation - ( 20,999) ( 20,999)
Net book value $ 19,303 $ 3,412 $ 22,715
At January 1 $ 19,303 $ 3,412 $ 22,715
-
Depreciation charge ( 915) ( 915)
At December 31 $ 19,303 $ 2,497 $ 21,800
At December 31
Cost $ 19,303 $ 24,411 $ 43,714
-
Accumulated depreciation ( 21,914) ( 21,914)
Net book value $ 19,303 $ 2,497 $ 21,800
2021 Land Buildings and structures Total
At January 1
Cost $ 19,303 $ 24,411 $ 43,714
Accumulated depreciation - ( 20,235) ( 20,235)
Net book value $ 19,303 $ 4,176 $ 23,479
At January 1 $ 19,303 $ 4,176 $ 23,479
Depreciation charge - ( 764) ( 764)
At December 31 $ 19,303 $ 3,412 $ 22,715
At December 31
Cost $ 19,303 $ 24,411 $ 43,714
Accumulated depreciation - ( 20,999) ( 20,999)
Net book value $ 19,303 $ 3,412 $ 22,715
----- End of picture text -----

A. Rental income from investment property and direct operating expenses arising from investment property are shown below:

For the years ended December 31

Rental income from investment property

(shown as ‘Other income’)

Direct operating expenses arising from the investment property that generated rental income during the year

2022 7,105 $ 915 $	2021
	4,917 $
	764 $

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• B. The fair value of the investment property held by the Company as at December 31, 2022 and 2021 was $163,137 and $115,561, respectively, which was valued based on current land value, quoted prices in the neighboring area by real estate agents and actual price registration information posted in the official search system. Valuation is categorised within Level 2 in the fair value hierarchy.

• C. For the years ended December 31, 2022 and 2021, the Company had no borrowing costs capitalised as investment property.

• D. Details of the Company’s investment property pledged to others as collateral as of December 31, 2022 and 2021 are provided in Note 8, ‘Pledged Assets’.

(10) Intangible assets

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

Computer software
Years ended December 31
2022 2021
At January 1
Cost $ 7,656 $ 7,460
Accumulated amortisation ( 4,925) ( 4,176)
$ 2,731 $ 3,284
At January 1 $ 2,731 $ 3,284
Acquired separately 475 919
Amortisation charge ( 1,149) ( 1,472)
Write-offs - cost ( 1,660) ( 723)
- accumulated amortisation 1,660 723
At December 31 $ 2,057 $ 2,731
At December 31
Cost $ 6,471 $ 7,656
Accumulated amortisation ( 4,414) ( 4,925)
$ 2,057 $ 2,731
----- End of picture text -----

• A. No interest expense was capitalised for the years ended December 31, 2022 and 2021.

• B. Details of amortisation expenses on intangible assets are as follows:

Details of amortisation expenses on intangible	assets are as follows:	assets are as follows:
Operating costs Administrative expenses Research and development expenses	For theyears ended December31
	2022 28 $ 824 297 1,149 $	2021
		64 $ 793 615
		1,472 $

• C. As of December 31, 2022 and 2021, the Company had no intangible assets pledged to others.

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(11) Short-term borrowings

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

Type of borrowings December 31, 2022 Interest rate range Collateral
Bank borrowings
Unsecured borrowings $ 180,225 2.48%～5.63% None
Type of borrowings December 31, 2021 Interest rate range Collateral
Bank borrowings
Unsecured borrowings $ 932,549 0.68 % ～1.33 % None
----- End of picture text -----

Details of interest expense recognized in profit or loss for the years ended December 31, 2022 and 2021 are provided in Note 6(23), ‘Finance Costs’.

• (12) Bonds payable

Guaranteed ordinary bonds payable Guaranteed convertible bonds Less : Discount on bonds payable	December 31, 2022 December 31, 2021 Collateral 3,000,000 $ 3,000,000 $ (Note) 1,600,000 - - 4,600,000 3,000,000 36,395) ( - 4,563,605 $ 3,000,000 $

• (Note) Details of the collateral provided for bonds payable are provided in Note 8, ‘Pledged assets’.

• A. The Company was issued the first domestic guaranteed bonds payable in October 2021, and the main issuance conditions are as follows:

• (a) The Company was approved by the competent authority to raise and issue the first domestic guaranteed bonds payable with a total amount of $3,000,000 (related issue costs of $5,650), with a coupon rate of 0.65% and a maturity period of 7 years from October 15, 2021 to October 15, 2028. The bonds are repayable in cash at the face value of the bonds upon maturity.

• (b) First Commercial Bank Co., Ltd. was appointed as the guarantor bank for the bonds.The guarantee period is from the date of full collection of the bonds to the date of full payment of the principal and interest payable under the Plan, and the guarantee covers the outstanding principal and interest compensation payable under the Plan, which are subordinate to the principal debt.

• (c) The principal and simple interest will be paid every year by coupon rate since the day approved to issue. If the local financial institutions are closed on a payment day, the principal and interest will be paid on the next operating day without extra interest.

• B. The Company issued the first, second and third domestic guaranteed convertible bonds payable in March 2022, and the main issuance conditions are as follows:

• (a) The Company was approved by the competent authority to raise and issue the first, second and third domestic guaranteed convertible bonds payable with a total amount of $700,000

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(related issue costs of $2,432), $500,000 (related issue costs of $2,006), $400,000 (related issue costs of $1,417), respectively. Issuance prices were $779,162, $557,563 and $445,004, respectively with a coupon rate of 0% and a maturity period of 3 years from March 25, 2022 to March 25, 2025. The bonds are repayable in cash at the face value of the convertible bonds upon maturity.

• (b) The first, second and third convertible bonds were guaranteed by Changhua Bank Co., Ltd., Huanan Bank Co., Ltd. and Shanghai Commercial Savings Bank Co., Ltd. The guarantee period is from the date of full collection of the convertible bonds to the date of full payment of the principal and interest payable under the Plan, and the guarantee covers the outstanding principal and interest compensation payable under the Plan, which are subordinate to the principal debt.

• (c) Convertible bonds for bondholders will start from the day following the expiration of three months after the issuance date of each bond (June 26, 2022) and end on the maturity date (March 25, 2025), unless it is suspended according to regulations or laws. Outside the transfer period, the Company may request the conversion of the bonds into ordinary shares of the Company at any time, and the rights of ordinary shares after conversion are the same as those of the original issued ordinary shares.

• (d) The conversion price for the conversion of corporate bonds is determined by the pricing model stipulated in each conversion method. In the event that the Company has an antidilution clause in the subsequent conversion price, it will be adjusted according to the pricing model specified in the conversion method. On the base date, the conversion price will be re-determined in accordance with the pricing model stipulated in the conversion regulations. If it is higher than the conversion price before the re-determination in the current year, no adjustment will be made.

• (e) From the day following the three-month issuance date of each convertible bond (June 26, 2022) to the 40th day of the issuance period (February 13, 2025), if the closing price of the Company's ordinary shares for 30 consecutive business days exceeds the current conversion price by more than 30%, the Company may, within the next 30 business days, recover all its bonds in cash according to the denomination of the bonds; or the day following the 3 months after the issuance of the convertible bonds (June 26, 2022) from the 40th day to the expiry of the issuance period (February 13, 2025), when the outstanding amount of the convertible bonds in circulation is less than 10% of the original issuance amount, the Company may recover all bonds in cash at any time thereafter according to the denomination of the bonds.

• (f) In accordance with the provisions of the conversion method, all the company's repossession (including the repurchase by the business office of the securities firm). The convertible bonds that have been repaid or converted will be cancelled, and all rights and obligations attached to the corporate bonds will also be extinguished and no longer issued.

• C. When the Company issues convertible corporate bonds, in accordance with the provisions of

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Amendments to IAS 32 "Financial Instruments: Expression", the conversion right which has the nature of equity is separated from each liability component, and was recognized as "Capital reserve - share options" of $221,790. Another embedded repurchase option, in accordance with Amendments IFRS No. 9 "Financial Instruments", is separated and accounted for on a net basis because it is not closely related to the economic characteristics and risks of the main contract debt commodity. In the column "Financial assets at fair value through profit and loss – noncurrent", the effective interest rates of the main contract debt after the first, second and third convertible corporate bonds are separated are 0.90%, 0.90% and 0.91%, respectively.

• D. Details of interest expense recognized in profit or loss for the years ended December 31, 2022 and 2021 are provided in Note 6 (23), Financial costs.

- (13) Long term borrowings

Borrowing Interest Type of borrowings period rate Collateral December 31, 2021 Long-term bank borrowings Secured borrowings 2020.12.25 ～ 1.80% Refer to Note 8 $ 590,000 2025.3.30

• A. There was no such transaction for the year ended December 31, 2022.

• B. Details of interest expense recognized in profit or loss for the years ended December 31, 2022 and 2021 are provided in Note 6(23), ‘Finance Costs’.

(14) Pensions

• A. The Company has a defined benefit pension plan in accordance with the Labor Standards Act, covering all regular employees’ service years prior to the enforcement of the Labor Pension Act on July 1, 2005 and service years thereafter of employees who chose to continue to be subject to the pension mechanism under the Labor Pension Act. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement. The Company contributes monthly an amount equal to 4% of the employees’ monthly salaries and wages to the retirement fund deposited with Bank of Taiwan, the trustee, under the name of the independent retirement fund committee. Also, the Company would assess the balance in the aforementioned labor pension reserve account by the end of December 31, every year. If the account balance is insufficient to pay the pension calculated by the aforementioned method to the employees expected to qualify for retirement in the following year, the Company will make contributions for the deficit by next March. The information on the defined benefit pension plan of the Company is as follows:

• (a) The amounts recognized in the balance sheet are as follows:

~37~

		December31,2022		December31,2021
Present value of defined benefit obligation	($	161,837)	($	187,100)
Fair value of plan assets		134,532		131,234
Net defined benefit liability	($	27,305)	($	55,866)

(b) Movements in net defined benefit liabilities - non-current are as follows:

		Present value of	Present value of	Present value of
			defined benefit		Fair	value of plan			Net defined
2022				obligation		assets		benefitliability
Balance at January 1	($			187,100)	$	131,234	($		55,866)
Current service cost	(			1,496)		-	(		1,496)
Interest (expense) income	(			936)		662	(		274)
	(			189,532)		131,896	(		57,636)
Remeasurements:
Return on plan assets
(excluding amounts included in
interest income or expense)				-		10,672			10,672
Changes in financial assumptions				10,743		-			10,743
Experience adjustments				1,117		-			1,117
				11,860		10,672			22,532
Pension fund contribution				-		1,786			1,786
Paid pension				15,835	(	9,822)			6,013
Balance at December 31	($			161,837)	$	134,532	($		27,305)
			Present value of
			defined benefit		Fair	value of plan			Net defined
2021				obligation		assets		benefit liability
Balance at January 1	($			181,446)	$	137,290	($		44,156)
Current service cost	(			1,756)		-	(		1,756)
Interest (expense) income	(			907)		692	(		215)
	(			184,109)		137,982	(		46,127)
Remeasurements:
Return on plan assets
(excluding amounts included in
interest income or expense)				-		1,968			1,968
Changes in demographic assumptions	(			4,831)		-	(		4,831)
Experience adjustments	(			8,867)		-	(		8,867)
	(			13,698)		1,968	(		11,730)
Pension fund contribution				-		1,991			1,991
Paid pension				10,707	(	10,707)			-
Balance at December 31	($			187,100)	$	131,234	($		55,866)

(c) The Bank of Taiwan was commissioned to manage the Fund of the Company’s defined benefit

~38~

pension plan in accordance with the Fund’s annual investment and utilisation plan and the “Regulations for Revenues, Expenditures, Safeguard and Utilisation of the Labor Retirement Fund” (Article 6: The scope of utilisation for the Fund includes deposit in domestic or foreign financial institutions, investment in domestic or foreign listed, over-the-counter, or private placement equity securities, investment in domestic or foreign real estate securitisation products, etc.). With regard to the utilisation of the Fund, its minimum earnings in the annual distributions on the final financial statements shall be no less than the earnings attainable from the amounts accrued from two-year time deposits with the interest rates offered by local banks. If the earnings is less than aforementioned rates, government shall make payment for the deficit after being authorised by the Regulator. The Company has no right to participate in managing and operating that fund and hence the Company is unable to disclose the classification of plan assets fair value in accordance with IAS 19 paragraph 142. The composition of fair value of plan assets as of December 31, 2022 and 2021 is given in the Annual Labor Retirement Fund Utilisation Report announced by the government.

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

Discount rate Future salary increases	2022 2021 1.50% 0.50% 2.25% 2.00% Forthe years endedDecember31

Future mortality rate was estimated based on the 6th Taiwan Standard Ordinary Experience Mortality Table for the years ended December 31, 2022 and 2021.

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

is affected. The analysis was	as follows:	as follows:	as follows:
December 31, 2022 Effect on present value of defined benefit obligation December 31, 2021 Effect on present value of defined benefit obligation	Discount rate			Future salaryincrease rate
	Increase0.25%	Decrease0.25%		Increase0.25%		Decrease0.25%
	3,313) ($ 4,333) ($		3,426 $ 4,487 $		3,339 $ 4,344 $	3,246) ($ 4,218) ($

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

The methods and types of assumptions used in preparing the sensitivity analysis did not change

~39~

compared to the previous period.

• (e) Expected contributions to the defined benefit pension plan of the Company for the following year amount to $1,810.

• (f) As of December 31, 2022, the weighted average duration of the retirement plan is 9 years. The analysis of timing of the future pension payment was as follows:

Next	1	year	$	17,387
Next	2	~ 5 years		43,137
Over	6	years		105,223
			$	165,747

• B. Effective July 1, 2005, the Company has established a defined contribution pension plan (the “New Plan”) under the Labor Pension Act (the “Act”), covering all regular employees with nationality. Under the New Plan, the Company contributes monthly an amount based on 6% of the employees’ monthly salaries and wages to the employees’ individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment. The pension costs under the defined contribution pension plan of the Company for the years ended December 31, 2022 and 2021 were $11,103 and $10,489, respectively.

(15) Share capital

• A. Movements in the number of the Company’s ordinary shares outstanding are as follows: (Unit: Shares in thousands)

Shares in thousands)
Number of shares at the beginning Stock dividends of the year Number of shares at the end of the year	For the years ended December 31
	2022 287,774 14,389 302,163	2021
		287,774 -
		287,774

• B. On June 22, 2022, the Company increased its capital by issuing new shares through capitalization of unappropriated retained earnings of $143,887 as resolved by the shareholders’ meeting. The issuance of new shares was approved by the Securities and Futures Bureau, Financial Supervisory Commission. The effective date was set on September 17, 2022.

• C. As of December 31, 2022, the Company’s authorized capital was $3,920,696, and the paid-in capital was $3,021,627, consisting of 302,163 thousand ordinary shares, with a par value of $10 (in dollars) per share which were issued in several installments. All proceeds from shares issued have been collected.

• D. Treasury shares

• (a) Reason for share reacquisition and movements in the number of the Company’s treasury shares are as follows: (Unit: Shares in thousands)

~40~

Number of shares at the beginning Reason for reacquisition ofthe year Addition Decrease Acquisition of the parent company’s shares by subsidiaries transferred to treasury shares from long -term investments 22,314 1,116 - Forthe yearendedDecember31,2022 Number of shares at the beginning Reason for reacquisition of the year Addition Decrease Acquisition of the parent company’s shares by subsidiaries transferred to treasury shares from long -term investments 23,830 - 1,516) ( Forthe yearendedDecember31,2021	Number of shares at the beginning Reason for reacquisition ofthe year Addition Decrease Acquisition of the parent company’s shares by subsidiaries transferred to treasury shares from long -term investments 22,314 1,116 - Forthe yearendedDecember31,2022 Number of shares at the beginning Reason for reacquisition of the year Addition Decrease Acquisition of the parent company’s shares by subsidiaries transferred to treasury shares from long -term investments 23,830 - 1,516) ( Forthe yearendedDecember31,2021	Number of shares at the beginning Reason for reacquisition ofthe year Addition Decrease Acquisition of the parent company’s shares by subsidiaries transferred to treasury shares from long -term investments 22,314 1,116 - Forthe yearendedDecember31,2022 Number of shares at the beginning Reason for reacquisition of the year Addition Decrease Acquisition of the parent company’s shares by subsidiaries transferred to treasury shares from long -term investments 23,830 - 1,516) ( Forthe yearendedDecember31,2021
			Number of shares at the end ofthe year
			23,430
	Number of shares at the beginning of the year 23,830	Addition Decrease - 1,516) (	Number of shares at the end of the year
Acquisition of the parent company’s shares by subsidiaries transferred to treasury shares from long -term investments			22,314

• (b) The subsidiary sold 1,516 thousand shares of the Company in July, 2021. The selling price and book value (cost) were $60,394 and $21,715 respectively, and the recognized gain on disposal was $38,679 (listed as "Capital reserve-treasury stock transaction"). As of December 31, 2022 and 2021, the book value (cost) was both $267,195, and the fair value were $562,324 and $691,748, respectively. The shares of the Company held by the subsidiaries are recognized as treasury shares and are entitled to dividends, recorded under "Capital reserve-treasury stock transaction". The cash dividends and stock dividends paid to the subsidiaries for the years ended December 31, 2022 and 2021 amounted to $34,030 and $11,157, $25,455 and $ - respectively.

• (c) Reason for share reacquisition and the number of the Company’s treasury shares remained unchanged as of December 31, 2022 and 2021. Details are as follows:

Name of company Reason for holding the shares reacquisition Chun Yu Investment Co., Ltd. Acquisition of the parent company’s shares by subsidiaries transferred to treasury shares from long-term investments	December31,2022	December31,2022
	Number of shares (inthousands) 23,430	Carrying amount
		267,195 $

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December 31, 2021 Name of company Reason for Number of shares Carrying holding the shares reacquisition (in thousands) amount Chun Yu Investment Acquisition of the parent Co., Ltd. company’s shares by subsidiaries transferred to treasury shares from long-term investments 22,314 $ 267,195

(16) Capital surplus

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

For the year ended Difference between consideration and carrying amount of subsidiaries December 31, 2022 Share options acquired ordisposed Balance at the beginning of year - $ 26,901 $ Issuance of convertible bonds 221,790 - Transfers to capital surplus for the Company's dividends received by subsidiaries - - Balance at the end of year 221,790 $ 26,901 $ For the year ended Difference between consideration and carrying amount of subsidiaries December31,2021 acquired ordisposed Balance at the beginning of year 26,901 $ Transfers to capital surplus for the Company's dividends received by subsidiaries - Disposal of treasury stock - Balance at the end of year 26,901	Treasury share transactions 195,202 $ - 34,030 229,232 $ Treasury share transactions 131,068 $ 25,455 38,679 195,202	Total 222,103 $ 221,790 34,030
		477,923 $
		Total
		157,969 $ 25,455 38,679
		222,103

B. Details of ‘Capital reserve - share options’ are provided in Note 6(15), ‘Share capital’.

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(17) Retained earnings

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

• B. Under the Company’s Articles of Incorporation, the Company may distribute earnings or offset losses at the end of each half fiscal year in accordance with the Company Act. When distributing earnings, the Company shall estimate and reserve for taxes payable, offset losses and set aside as legal reserve until the legal reserve equals the paid-in capital in accordance with the regulations. Where dividends are distributed in the form of cash, it shall be approved by the Board of Directors. Where dividends are distributed by issuing new shares, it shall be approved by the stockholders in accordance with the regulations.

• The current year’s earnings, if any, shall first be used to pay all taxes, offset prior years’ operating losses, set aside 10% of the remaining amount as legal reserve and then reverse or set aside as special reserve in accordance with relevant regulations. The remaining earnings along with accumulated unappropriated earnings from prior years will be the accumulated distributable earnings, and the Board of Directors will present a proposal of the earnings distribution for the approval of the shareholders. Where dividends and bonus, capital surplus and legal reserve, in whole or in part, are distributed in the form of cash, the Board of Directors is authorised make the distribution by approval of more than half of the directors present at the meeting, where more than two-thirds of the directors are present, and the report of such distribution shall be submitted to the shareholders during their meeting. The regulation in relation to approval from the shareholders is not applicable. In principle, at least 50% of earnings, after considering the capital needs for current and future development and the interest of shareholders, shall be distributed as dividends according to the dividend policy. However, if there is a need due to changes in the industry’s environment or operational plans, the Board of Directors may present a proposal to adjust the ratio for the approval of the shareholders.

• C. Special reserve:

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

• (b) The amount of $430,610 previously set aside by the Company as special reserve on initial application of IFRSs in accordance with Order No. Financial-Supervisory-SecuritiesCorporate-1010012865, dated April 6, 2012, shall be reversed proportionately when the relevant assets are used, disposed of or reclassified subsequently.

• D. The Company recognized cash dividends and stock dividends distributed to owners amounting

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－ to $438,885 and $143,887, $316,551 and $ for the years ended December 31, 2022 and 2021, respectively. It includes cash dividends of $151,081 ($0.5 (in dollars) per share) in the first half of 2022 earnings, cash dividends of $287,774 ($1.0 (in dollars) per share) and share dividends $143,887 ($0.5 (in dollars) per share) in the second half of 2021 earnings; cash dividends of $143,887 ($0.5 (in dollars) per share) in the first half of 2021 earnings and cash dividends of $172,664 ($0.6 (in dollars) per share) in the 2020 earnings. On March 9, 2023, the Board of Directors proposed for the distribution of cash dividends from second half of 2022 earnings amounting to $302,163 ($1.0 (in dollars) per share).

(18) Other equity

Other equity
		For the year ended December				31, 2022
				Unrealised
		Currency		gains (losses)
		translation		onvaluation			Total
At January 1	($	214,721)		6,765 $	($		207,956)
Revaluation - currency translation		51,630		-			51,630
Revaluation - unrealised gains (losses)
on valuation		-	(	89,882)	(		89,882)
Valuation adjustment transferred out to
retained earnings		-	(	84,868)	(		84,868)
At December 31	($	163,091)	167,985) ($		($		331,076)
		For the year ended December 31,					2021
				Unrealised
		Currency		gains (losses)
		translation		onvaluation			Total
At January 1	($	185,009)	22,362 $		($		162,647)
Revaluation - currency translation	(	29,712)		-	(		29,712)
Revaluation - unrealised gains (losses)
on valuation		-	(	15,597)	(		15,597)
At December 31	($	214,721)	6,765 $		($		207,956)
Operating revenue
		For the	years ended December				31
		2022				2021
Revenue from contracts with customers		5,478,958 $ $					5,978,369

(19) Operating revenue

A. Disaggregation of revenue from contracts with customers

The Company derives revenue from the transfer of goods at a point in time in the following major product lines:

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		Forthe years ended	Forthe years ended	December31
Major product lines		2022		2021
Screws and nuts	$	2,427,807	$	2,259,471
Wire rods		2,341,071		3,004,660
Billet		686,930		-
Others		23,150		714,238
	$	5,478,958	$	5,978,369

B. Contract liabilities

As of December 31, 2022 and 2021, the Company has recognized revenue-related contract liabilities of $15,318 and $10,786, respectively. As of January 1, 2022 and 2021, the contract liabilities amounted to $10,786 and $13,702, respectively. Revenue recognized for the years ended December 31, 2022 and 2021, which was included in the contract liabilities at the beginning of the year, amounted to $8,354 and $7,857, respectively.

(20) Interest income

beginning of the year, amounted to $8,354 Interest income	and $7,857, respectively.	and $7,857, respectively.
Other income Interest income from bank deposits Other interest Rent income Dividend income Other income	2022 2021 4,969 $ 82 $ 5 9 4,974 $ 91 $ For the years ended December 31 For theyears ended December31
	2022 9,199 $ 15,645 16,875 41,719 $	2021
		5,814 $ 14,798 14,507
		35,119 $

(21) Other income

(22) Other gains and losses

Gains on financial assets at fair value through profit or loss Net foreign exchange gain (losses) Losses on disposal of property, plant and equipment Losses from lease modification Miscellaneous disbursements

		Forthe years endedDecember31	Forthe years endedDecember31
		2022	2021
	$	58,061	$	51,185
		20,836	(	3,991)
(		2,735)	(	3,068)
(		32)		-
(		1,290)	(	1,372)
	$	74,840	$	42,754

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(23) Finance costs

Finance costs
Expenses by nature Interest expense: Ordinary bonds payable Convertible bonds payable Bank borrowings Interest on lease liabilities Employee benefit expense Depreciation Amortisation	2021 2020 48,560 $ 4,167 $ 22,708 - 10,750 54,360 6 19 82,024 $ 58,546 $ Forthe years endedDecember31 Classified as Classified as operating costs operating expenses Total 351,755 $ 128,407 $ 480,162 $ 103,255 8,909 112,164 28 1,121 1,149 455,038 $ 138,437 $ 593,475 $ Forthe yearendedDecember31,2022
		593,475 $

(24) Expenses by nature

	Forthe	year	endedDecember	31,	2021
	Classified as		Classified as
	operating costs	operating expenses			Total
Employee benefit expense	391,032 $	$	131,400	$	522,432
Depreciation	98,021		11,084		109,105
Amortisation	64		1,408		1,472
	489,117 $	$	143,892	$	633,009

(25) Employee benefit expense

Employee benefit expense
Wages and salaries Labour and health insurance fees Pension costs Directors’ remuneration Other personnel expenses	Forthe yearendedDecember31,2022
	Classified as operating costs 303,785 $ 31,851 8,996 - 7,123 351,755 $	Classified as operating expenses 93,225 $ 9,094 3,877 20,470 1,741 128,407 $	Total
			397,010 $ 40,945 12,873 20,470 8,864
			480,162 $

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For the year ended December 31, 2021

Wages and salaries Labour and health insurance fees Pension costs Directors’ remuneration Other personnel expenses	Classified as Classified as operatingcosts operatingexpenses Total 345,345 $ 94,025 $ 439,370 $ 28,912 7,981 36,893 8,697 3,763 12,460 - 23,191 23,191 8,078 2,440 10,518 391,032 $ 131,400 $ 522,432 $

• A. As at December 31, 2022 and 2021, the Company had 604 and 587 employees, including 11 and 6 nonemployee directors, respectively. Average employee benefit expense and average employee salaries for the years ended December 31, 2022 and 2021 were $777 and $860, $671 and $757, respectively. Adjustment of average employee salaries for the year ended December 31, 2022 was a decrease of 11.36%.

• B. The Company has set up the Audit Committee and therefore it had no supervisors’ remuneration for the current and previous years.

• C. The Company provides remuneration to directors for their services based on the Company’s internal management policy and the general pay levels. Management follows the order of the Board of Directors to handle the business and is remunerated based on the Company’s internal management policy and the general pay levels. The employee compensation policy of the Company is established based on the employee’s ability, contribution to the Company, performance, and the market value of the position, which has a positive correlation with the Company’s operating performance. Employee compensation packages are set based on the market value for the positions. Bonuses are linked to the achievement of the employee and department targets. The Company designs a well-thought-out benefits measures in accordance with the laws and regulations and by taking into consideration the needs of employees.

• D. Under the Company’s Articles of Incorporation, the current year’s earnings, if any, shall be distributed as employees’ compensation and directors’ remuneration. The ratio shall be 2% for employees’ compensation and shall not be higher than 2% for directors’ remuneration. However, if the Company has accumulated deficit, the earnings shall be reserved to offset losses.

• E. For the years ended December 31, 2022 and 2021, employees’ compensation was accrued at $13,100 and $16,981, respectively; while directors’ remuneration was accrued at $13,100 and $16,981, respectively. The aforementioned amounts were recognized in salary expenses and were accrued based on the earnings of current year and the percentage prescribed by the Company’s Articles of Incorporation.The employees’ compensation and directors’ remuneration resolved by the Board of Directors were both $16,981, consistent with the amount recognized on the financial statements for the year ended December 31, 2021. The employees’ compensation and directors’ remuneration resolved by the Board of Directors on March 9, 2023 were both $13,100, and the employees’ compensation will be distributed in the form of cash.

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

• (26) Income tax

• A. Components of income tax expense :

  • (a) Components of income tax expense :

Current tax: Current tax on profits for the year Prior year income tax under estimation Total current tax Deferred tax: Origination and reversal of temporary differences Income tax expense	2022 2021 21,366 $ 3,847) ($ 12,822 7 34,188 3,840) ( 55,635 74,212 89,823 $ 70,372 $ Forthe years endedDecember31

• (b) The income tax (charge)/credit relating to components of other comprehensive income is as follows:

follows:
Remeasurement of defined benefit obligations Exchange differences on translation of foreign financial statements	For the years ended December 31
	2022 2021 4,506 $ 2,346) ($ 327 - 4,833 $ 2,346) ($	2021

B. Reconciliation between income tax expense and accounting profit:

			Forthe years ended	Forthe years ended	December	31
			2022		2021
Tax calculated based on profit before tax and		$	125,465	$	163,020
statutory tax rate
Effects from items disallowed by tax regulation	(		27,678)	(		19,531)
Separate taxation			14,982			355
Prior year income tax under estimation			12,822			7
Effect from tax loss	(		35,768)	(		73,479)
Income tax expense		$	89,823	$		70,372

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

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For the year ended December 31, 2022

									Recognized	Recognized
						Recognized				in other
							in	comprehensive
			January1		profit or loss					income	December31
Deferred tax assets
Temporary differences:
Allowance for bad debts in		$		1,212	$		-		$	-		$		1,212
excess of tax limits
Loss on decline in inventory				3,189			2,981			-				6,170
market value
Unrealised losses on disposal of				122	(		122)			-				-
assets
Other deferred revenue and				12,246	(		1,612)			-				10,634
unrealised expenses
Currency translation differences				4,450			-			-				4,450
Remeasurements of defined				13,128			-	(		4,506)				8,622
benefit plan
Tax losses				123,399	(		35,882)			-				87,517
			$	157,746	($		34,635)	($		4,506)			$	118,605
Deferred tax liabilities
Temporary differences:
Pensions	($			1,945)	($		1,213)		$	-	($			3,158)
Unrealized foreign exchange gain				-	(		455)			-	(			455)
Reserve for land value increment	(			293,140)			-			-	(			293,140)
tax
Currency translation differences	(			1,050)			-	(		327)	(			1,377)
Foreign investment income				-	(		21,675)			-	(			21,675)
Others	(			9,339)			2,343			-	(			6,996)
	($			305,474)	($		21,000)	($		327)	($			326,801)
	($			147,728)	($		55,635)	($		4,833)	($			208,196)

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For the year ended December 31, 2021

								Recognized	Recognized
						Recognized			in other
							in	comprehensive
			January1		profit or loss				income	December31
Deferred tax assets
Temporary differences:
Allowance for bad debts in		$		1,212	$		-	$	-		$		1,212
excess of tax limits
Loss on decline in inventory				4,054	(		865)		-				3,189
market value
Unrealised losses on disposal of				726	(		604)		-				122
assets
Unrealised foreign exchange loss				570	(		570)		-				-
Other deferred revenue and				12,148			98		-				12,246
unrealised expenses
Currency translation differences				4,450			-		-				4,450
Remeasurements of defined				10,782			-		2,346				13,128
benefit plan
Tax losses				196,764	(		73,365)		-				123,399
			$	230,706	($		75,306)	$	2,346			$	157,746
Deferred tax liabilities
Temporary differences:
Pensions	($			1,949)		$	4	$	-	($			1,945)
Reserve for land value increment	(			293,140)			-		-	(			293,140)
tax
Currency translation differences	(			1,050)			-		-	(			1,050)
Others	(			10,429)			1,090		-	(			9,339)
	($			306,568)		$	1,094	$	-	($			305,474)
	($			75,862)	($		74,212)	$	2,346	($			147,728)

D. Expiration dates of unused tax losses and amounts of unrecognized deferred tax assets are as follows:

follows:
		December31,2022
Year incurred 2017 2019	Amount filed /assessed 580,599 $ 516,191 1,096,790 $	Unused amount - $ 437,586 437,586 $	Unrecognised deferred taxassets Expiry year - $ 2027 - 2029 - $

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Year incurred 2017 2019	Amount filed Unrecognised deferred /assessed Unused amount taxassets 580,599 $ 208,607 $ 107,804 $ 516,191 516,191 - 1,096,790 $ 724,798 $ 107,804 $ December31,2021	Expiry year
		2027 2029

• E. The Company did not recognise deferred tax liabilities related to taxable temporary difference of investment on subsidiaries. The unrecognized deferred tax liabilities as of December 31, 2022 and 2021 were $1,181,299 and $1,073,233, respectively.

• F . The Company’s income tax returns through 2020 have been assessed and approved by the Tax Authority. The Company did not have any administrative remedy as of March 9, 2023.

(27) Earnings per share

Earnings per share
Basic earnings per share Profit attributable to ordinary shareholders Diluted earnings per share Profit attributable to ordinary shareholders Assumed conversion of all dilutive potential ordinary shares Employees’ compensation Convertible bonds Profit attributable to ordinary shareholders plus assumed conversion of all dilutive potential ordinary shares	Forthe yearendedDecember31,2022
	Amount aftertax 537,503 $ 537,503 $ - 8,474 545,977 $	Weighted average number of ordinary shares outstanding (sharesinthousands) 278,733 278,733 649 22,093 301,475	Earnings per share (indollars)
			1.93 $
			1.81 $

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For the year ended December 31, 2021

Basic earnings per share Profit attributable to ordinary shareholders Diluted earnings per share Profit attributable to ordinary shareholders Assumed conversion of all dilutive potential ordinary shares Employees’ compensation Profit attributable to ordinary shareholders plus assumed conversion of all dilutive potential ordinary shares	Amount aftertax 744,730 $ 744,730 $ - 744,730 $	Weighted average number of ordinary Earnings shares outstanding per share (sharesinthousands) (indollars) 277,919 2.68 $ 277,919 587 278,506 2.67 $

The abovementioned weighted average number of outstanding shares was retrospectively adjusted proportionately to the capitalized amount of unappropriated retained earnings for the year ended December 31, 2021.

(28) Supplemental cash flow information

• A. Investing activities with partial cash payments:

cember 31, 2021. pplemental cash flow information Investing activities with partial cash payments:
		For the years ended			December 31
		2022			2021
Purchase of property, plant and equipment		$	68,114	$	62,110
Add: Opening balance of payable on			12,142		3,726
equipment (shown as ‘Other payables’)
Less: Ending balance of payable on equipment
(shown as ‘Other payables’)	(		5,310)	(	12,142)
Cash paid for acquisition of property, plant and
equipment		$	74,946	$	53,694

B. Operating and investing activities with no cash flow effects:

(a) Write-off of uncollectible amounts (b) Prepayments for business facilities transferred to property, plant and equipment	Forthe years endedDecember31	Forthe years endedDecember31
	2022 933 $ 16,673 $	2021
		- $
		36,673 $

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(29) Changes in liabilities from financing activities

Short-term borrowings January 1, 2022 932,549 $ Changes in cash flow from financing activities 752,324) ( Changes in unamortized discount - - December 31, 2022 180,225 $ Changes in other non-cash items	Lease liability Bondspayable 526 $ 3,000,000 $ 433) ( 1,775,874 - 11,454 176 223,723) ( 269 $ 4,563,605 $	Long-term borrowings (includingcurrentportion) 590,000 $ 590,000) ( - - - $	Guarantee deposits received 457 $ - - - 457 $	Liabilities from financingactivities -gross 4,523,532 $ 433,117 11,454 223,547) (
				4,744,556 $

January 1, 2021 Changes in cash flow from financing activities December 31, 2021	Short-term borrowings 994,398 $ 61,849) ( 932,549 $	Lease liability 1,466 $ 940) ( 526 $	Bondspayable - $ 3,000,000 3,000,000 $	Long-term borrowings Guarantee (includingcurrentportion) deposits received 2,340,000 $ 564 $ 1,750,000) ( 107) ( 590,000 $ 457 $	Liabilities from financingactivities -gross
					3,336,428 $ 1,187,104
					4,523,532 $

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7. Related Party Transactions

(1) Names of related parties and relationship

==> picture [482 x 15] intentionally omitted <==

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

Names of related parties Relationship with the Company
----- End of picture text -----

Names of related parties	Relationship withthe Company
Chun Bang Precision Co., Ltd. (Note 1)	Subsidiary
Chun Yu Works (USA) Inc.	Subsidiary
Chun Yu Bio-Tech Corp.	Subsidiary
Scholar Holdings Ltd.	Subsidiary
Pt Moon Lion Industries Indonesia	Subsidiary
Chun Zu Machinery Industry Co., Ltd.	Subsidiary
Chun Yu (Dongguan) Metal Proucts Co., Ltd.	Subsidiary
Shanghai Uchee Hardware Proucts Ltd.	Subsidiary
Chunyu Group Shanghai Tongsheng Trade Co., Ltd.	Subsidiary
Shanghai Chun Zu Machinery Industry Ltd.	Subsidiary
Ofco Industrial Corp.	Other related party
Gloria Material Technology Corp.	Other related party
TSG Transportation Corp.	Other related party
TSG Environmental Technology Corp.	Other related party
TSG Power Corp.	Other related party
Golden Win Steel Industrial Corp.	Other related party

(2) Significant related party transactions

A. Operating revenue

nificant related party transactions Operating revenue G Environmental Technology Corp. G Power Corp. lden Win Steel Industrial Corp.	Other related party Other related party Other related party	Other related party Other related party Other related party
Sales of goods: Other related parties Subsidiaries	Forthe years endedDecember31
	2022 702,780 $ 147,854 850,634 $	2021
		546,981 $ 91,892
		638,873 $

Goods are sold to related parties based on the terms that would be available to third parties, except for Chun Yu Works (USA) Inc. and Scholar Holdings Ltd., for which the goods are sold based on agreed prices as there are no similar transactions available for comparison. The average credit ～ terms for related parties are 1 3 months which would be available to third parties, except for Chun Yu Works (USA) Inc. and Scholar Holdings Ltd. with credit terms of 4 ～ 6 months.

B. Purchases

Chun Yu Works (USA) Inc. and Scholar Holdings Purchases	Ltd. with credit terms of 4～6 months.	Ltd. with credit terms of 4～6 months.
Purchases of goods: Subsidiaries Other related parties	Forthe years endedDecember31
	2022 72,045 $ 2,437 74,482 $	2021
		46,949 $ 9,817
		56,766 $

Goods are purchased from related parties based on the prices and terms that would be available

~54~

～ to third parties and the average payment terms are 1 2 months. However, both parties may negotiate to extend payment terms according to the funds available.

C. Property transaction

• (a) Acquisition of assets:

) Acquisition of assets:	) Acquisition of assets:	) Acquisition of assets:
Equity transactions: Objects 2022 2021 Subsidiaries Machinery and equipment as well as prepayments for business facilities 10,084 $ 21,533 $ Other related party Machinery and equipment 500 - 10,584 $ 21,533 $ For theyears ended December31 For the year ended No. of shares December31,2021 Accounts (inthousands) Objects Consideration Investments accounted for 10,500 Capital increase - 105,000 $ using the equity method Chun Bang Precision Co., Ltd. Investments accounted for 3,004 Capital increase - using the equity method Chun Yu Bio-Tech Corp. 30,040 135,040 $
		Consideration
Investments accounted for using the equity method Investments accounted for using the equity method		105,000 $ 30,040 135,040 $

(b) Equity transactions:

There was no such transaction for the year ended December 31, 2022. D. Other expenses

There was no such transaction for the year ended Other expenses	December 31, 2022.	December 31, 2022.
Other income Other related parties Subsidiaries Management service income Subsidiaries Other income Subsidiaries Other related parties	For the years ended December 31
	2022 2021 53,592 $ 57,046 $ 6,345 8,929 59,937 $ 65,975 $ Forthe years endedDecember31	2021
		57,046 $ 8,929
		65,975 $
	2022 6,400 $ 14,462 3,019 23,881 $	2021
		6,178 $ 11,051 -
		17,229 $

E. Other income

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F. Accounts receivable

F.Accounts receivable
G.Other receivables H.Prepayments IAccounts payable J.Other payables Other related parties Subsidiaries Subsidiaries Other related parties Subsidiaries Subsidiaries Other related parties Subsidiaries	December31,2022 37,724 $ 17,901 55,625 $ December31,2022 12,069 $ December 31, 2022 335 $ 295 630 $ December 31, 2022 16,098 $ December 31, 2022 8,895 $ 1,307 10,202 $	December31,2021 135,236 $ 34,071
		169,307 $
		December31,2021
		8,551 $
		December 31, 2021
		- $ -
		- $
		December31,2021
		11,666 $
		December31,2021
		18,066 $ 3,430
		21,496 $

K. Endorsements and guarantees provided to related parties: Refer to Note13(1)B.

(3) Key management compensation

Wages and salaries and other short-term benefits	Forthe years endedDecember31	Forthe years endedDecember31
	2022 25,824 $	2021
		20,326 $

8. Pledged Assets

The Company’s assets pledged as collateral are as follows:9

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==> picture [500 x 153] intentionally omitted <==

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

Assets December 31, 2022 December 31, 2021 Purpose
Pledged demand deposits (Note 1) $ - $ 7,361 Guarantee and collateral
for long-term borrowings
Land (Note 2) 358,824 358,824 Collateral for long-term
borrowings and bonds
payable
Buildings and structures, net 63,474 64,771 Collateral for long-term
(Note 2) borrowings and bonds
payable
$ 422,298 $ 430,956
----- End of picture text -----

(Note 1) Shown as ‘Other non-current financial assets’.

(Note 2) Shown as ‘Property, plant and equipment’ and ‘Investment property, net’.

1. Significant Contingent Liabilities and Unrecognized Contract Commitments

2. (1) As of December 31, 2022 and 2021, the Company’s capital expenditures contracted for at the balance sheet date but not yet incurred were $8,126 and $28,362, respectively.

3. (2) As of December 31, 2022 and 2021, the Company’s line of credit issued but not yet negotiated were $36,751 and $688,706, respectively.

4. (3) Information on provision of endorsements and guarantees to others is provided in Note 13(1)B.

5. (4) On October 5, 2019, the Company entered into a mid-term secured syndicated loan agreement with 10 banks including First Commercial Bank for a credit facility of $1,790,000 (including Tranche A facility amount of $590,000, Tranche B facility amount of $1,200,000 and Tranche C facility amount of $720,000, among which the total amount drawdown under Tranche B and Tranche C shall not exceed the Tranche B facility amount). The term for each tranche is 5 years. The Company’s commitments to syndicated banks during the terms of syndicated loan are as follows:

   • i. During the terms of the syndicated loan, the financial covenants stated in the Company’s consolidated financial statements audited by independent auditors shall comply with the following financial covenants and will be assessed once a year:

     • (a) Current ratio: The ratio of current assets to current liabilities shall not be lower than 100%.

     • (b) Debt ratio: The ratio of total liabilities to tangible equity shall not be higher than 200%.

     • (c) Interest coverage ratio: The ratio of total amount of income before tax, interest expense, depreciation and amortisation to interest expense shall not be lower than 200%.

     • (d) Tangible equity: The amount of net assets less intangible assets shall not be lower than $3,000,000.

   • ii. If the Company fails to comply with the aforementioned financial covenants, the Company is required to pay additional interest at the rate of 0.10% per annum over the interest rate applicable under this agreement during the period from the date of notification sent by the managing bank to the date that consolidated financial statements, which meet all the requirements, are provided. The aforesaid failure to comply with financial covenants will not be regarded as an event of default if additional interest is paid.

As of December 31, 2021, the Company did not breach commitments on aforementioned financial

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covenants.

There was no such transaction for the year ended December 31, 2022.

• (5)The Company is involved in a lawsuit filed by Mr. Li, Shi-Ren in 2012 relating to whether an employment relationship existed between both parties. Mr. Li, Shi-Ren claimed that he served in an investee of the Company for 26 years and 8 months and requested the Company to pay pension totaling USD 642 thousand. On February 27, 2014, the Taiwan Kaohsiung District Court rendered a decision that the Company is liable for the USD 642 thousand pension payment. The Company disagreed with the decision and appealed during the legal period. On April 29, 2016, the Taiwan High Court Kaohsiung Branch Court revoked the original decision rendered on February 27, 2014 and rendered a decision that the litigation expenses incurred thereby shall be borne by the appellant (Li, Shi-Ren). Subsequently, Li, Shi-Ren appealed to the Supreme Court. On August 2, 2018, the Supreme Court, after reviewing the case, revoked the decision except for the provisional execution and remanded the case to the Taiwan High Court Kaohsiung Branch Court. On April 15, 2020, following the first order by the Supreme Court, the Taiwan High Court Kaohsiung Branch Court rendered a decision on the case no. 2018-Zhong-Lao-Shang-Geng-Yi-Zi-1, in which both of the appellant’s (Li, Shi-Ren) appeal with the first instance court and motion for provisional execution are dismissed, and the appellant shall bear the relevant litigation expenses. Subsequently, Li, Shi-Ren appealed to the Supreme Court. On April 28, 2022, the Supreme Court, after reviewing the case, revoked the decision except for the provisional execution and remanded the case to the Taiwan High Court Kaohsiung Branch Court. The judgment was remanded by the Supreme Court for the second time. The appeal was dismissed on December 14, 2022, and the related litigation expenses incurred shall be borne by the Company.

10. Significant Disaster Loss

None.

11. Significant Events after the Balance Sheet Date

None.

12. Others

(1) Capital management

The Company’s objectives when managing capital are to safeguard the Company’s ability to continue as a going concern in order to provide returns for shareholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

(2) Financial instruments

• A. Financial instruments by category

Details of the Company’s financial instruments by category are provided in Note 6.

• B. Financial risk management policies

• (a) The Company’s activities expose it to a variety of financial risks: market risk (including

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foreign exchange risk, price risk and interest rate risk), credit risk and liquidity risk. The Company’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Company’s financial position and financial performance.

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

• C. Significant financial risks and degrees of financial risks

• (a) Market risk

  • i. Foreign exchange risk

  • (i) The Company operates internationally and is exposed to exchange rate risk arising from various functional currency, primarily with respect to the USD, EUR, RMB and IDR. Foreign exchange rate risk arises from future commercial transactions and recognized assets and liabilities.

  • (ii) Management has set up a policy to manage its foreign exchange risk against the functional currency. The Company’s treasury is responsible for hedging its entire foreign exchange risk exposure. The Company’s treasury uses forward foreign exchange contracts to manage the foreign exchange risk arising from future commercial transactions and recognized assets and liabilities. Foreign exchange risk arises when future commercial transactions or recognized assets or liabilities are denominated in a currency that is not the entity’s functional currency.

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

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==> picture [407 x 143] intentionally omitted <==

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

December 31, 2022
Foreign currency
amount
(Foreign currency: functional currency) (In thousands) Exchange rate Book Value
Financial assets
Monetary items
USD:NTD $ 6,233 30.71 $ 191,415
EUR:NTD 1,036 32.72 33,898
Investments accounted for using
the equity method
----- End of picture text -----

USD:NTD $ EUR:NTD Investments accounted for using the equity method	6,233 30.71 191,415 $ 1,036 32.72 33,898	6,233 30.71 191,415 $ 1,036 32.72 33,898	6,233 30.71 191,415 $ 1,036 32.72 33,898
USD:NTD IDR:NTD Financial liabilities Monetary items USD:NTD EUR:NTD (Foreign currency: functional currency) Financial assets Monetary items USD:NTD EUR:NTD Investments accounted for using the equity method USD:NTD IDR:NTD Financial liabilities Monetary items USD:NTD EUR:NTD	53,455 30.71 1,641,603 325,929,153 0.00198 645,340 4,658 30.71 143,047 834 32.72 27,288 December31,2021
	Foreign currency amount (In thousands) 8,055 $ 1,005 55,724 291,562,448 8,895 752	Exchange rate 27.68 31.32 27.68 0.00198 27.68 31.32	Book Value
			222,962 $ 31,477 1,542,440 577,294 246,214 23,553

The sensitivity analysis of foreign exchange risk mainly focuses on the foreign currency monetary items at the end of the financial reporting period. If the exchange rate of NTD to all foreign currencies had appreciated/depreciated by 1%, the Company’s net income for the years ended December 31, 2022 and 2021 would have decreased/increased by $440 and $123, respectively.

The total exchange gain (loss), including realised and unrealised, arising from significant foreign exchange variation on the monetary items held by the Company for the years ended December 31, 2022 and 2021, amounted to $20,836 and ($3,991), respectively.

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ii. Price risk

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

• (ii) The Company’s investments in equity securities comprise shares issued by the domestic companies. The prices of equity securities would change due to the change of the future value of investee companies. If the prices of these equity securities had increased/decreased by 1% with all other variables held constant, post-tax profit for the years ended December 31, 2022 and 2021 would have increased/decreased by $502 and $514, respectively, as a result of gains/losses on equity securities classified as at fair value through profit or loss. Other components of equity would have increased/decreased by $2,429 and $3,771, respectively, as a result of other comprehensive income classified as equity investment at fair value through other comprehensive income.

iii. Cash flow and fair value interest rate risk

• (i) The Company’s main interest rate risk arises from borrowings with variable rates, which expose the Company to cash flow interest rate risk. During 2022 and 2021, the Company borrowings at variable rate were mainly denominated in NTD.

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

• (iii) If the borrowing interest rate had increased/decreased by 1% with all other variables held constant, profit, net of tax for the years ended December 31, 2022 and 2021 would have decreased/increased by $1,442 and $468, respectively. The main factor is that changes in interest expense result from floating rate borrowings.

(b) Credit risk

• i. Credit risk refers to the risk of financial loss to the Company arising from default by the clients or counterparties of financial instruments on the contract obligations. The main factor is that counterparties could not repay in full the accounts receivable based on the agreed terms.

• ii. The Company manages its credit risk taking into consideration the entire company’s concern. For banks and financial institutions, only independently rated parties with a certain rating are accepted. According to the Company’s credit policy, each local entity in the Company is responsible for managing and analysing the credit risk for each of

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their new clients before standard payment and delivery terms and conditions are offered. Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings in accordance with limits set by the Board of Directors. The utilisation of credit limits is regularly monitored.

• iii. The Company adopts the following assumption under IFRS 9 to assess whether there has been a significant increase in credit risk on that instrument since initial recognition:

• If the contract payments were past due over 30 days based on the terms, there has been a significant increase in credit risk on that instrument since initial recognition.

• iv. If the credit rating grade of an investment target degrades two scales, there has been a significant increase in credit risk on that instrument since initial recognition.

• v. If the default rate of an investment target exceeds 10%, there has been a significant increase in credit risk on that instrument since initial recognition.

• vi. The Company adopts the assumptions under IFRS 9, that is the default occurs when the contract payments are past due over 90 days.

• vii. The Company classifies customer’s accounts receivable in accordance with credit risk on trade. The Company applies the modified approach using a provision matrix to estimate the expected credit loss and uses the historical and timely information to establish loss rate for assessing the default possibility of accounts receivable. Movements in relation to the Company applying the modified approach to provide loss allowance for notes and accounts receivable are as follows:

For the year ended December 31, 2022

	Forthe yearendedDecember31,2022	Forthe yearendedDecember31,2022
Balance at January 1 Expected credit gain Write-off of uncollectible amounts Balance at December 31 Balance at January 1 Expected credit loss Balance at December 31	Notes Accounts receivable receivable Total - $ 2,840 $ 2,840 $ - 547) ( 547) ( - 933) ( 933) ( - $ 1,360 $ 1,360 $ Notes Accounts receivable receivable Total - $ 1,323 $ 1,323 $ - 1,517 1,517 - $ 2,840 $ 2,840 $ Forthe yearendedDecember31,2021
	Notes receivable - $ - - $	Accounts receivable 1,323 $ 1,517 2,840 $

• (c) Liquidity risk

• i. Cash flow forecasting is performed and aggregated by Company treasury. Company

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treasury monitors rolling forecasts of the Company’s liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times so that the Company does not breach borrowing limits or covenants (where applicable) on any of its borrowing facilities.

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

December31,2022 Non-derivative financial liabilities: Short-term borrowings Accounts payable (including related parties) Other payables Lease liability Bonds payable Guarantee deposits received December 31, 2021 Non-derivative financial liabilities: Short-term borrowings Accounts payable (including related parties) Other payables Lease liability Bonds payable Long-term borrowings (including current portion) Guarantee deposits received	Less than 1year 182,510 $ 130,733 215,875 217 1,950 457 Less than 1year 934,295 $ 471,935 307,358 527 1,950 10,602 457	Between 1 and 2year(s) - $ - - 55 1,950 - Between 1 and 2year(s) - $ - - - 1,950 127,807 -	Between 2 and5 years - $ - - - 5,850 - Between 2 and5 years - $ - - - 5,850 481,277 -	More than 5 years
				- $ - - - 4,601,950 - More than 5 years
				- $ - - - 3,003,900 - -

• iii. For non-derivative financial liabilities, the Company does not expect the timing of occurrence of the cash flows estimated through the maturity date analysis to be significantly earlier, nor expect the actual cash flow amount to be significantly different.

(3) Fair value information

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

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

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value of the Company’s investment in listed stocks and beneficiary certificates is included in Level 1.

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

• Level 3: Unobservable inputs for the asset or liability.

• B. The carrying amounts of the Company’s financial instruments not measured at fair value (including cash and cash equivalents, notes receivable, accounts receivable (including related parties), other receivables (including related parties), guarantee deposits paid, other non-current financial assets, short-term borrowings, accounts payable (including related parties), other payables, bonds payable, long-term borrowings and guarantee deposits received) are approximate to their fair values.

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

December 31, 2022 Assets: Financial assets at fair value through profit or loss Equity securities Beneficiary certificates Financial assets at fair value through other comprehensive income Equity securities Recurring fair value measurements	Level 1 39,074 $ 11,179 50,253 242,851 293,104 $	Level 2 - $ - - - - $	Level3 - $ - - - - $	Total
				39,074 $ 11,179
				50,253
				242,851
				293,104 $

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

December 31, 2021 Level 1 Level 2 Level 3 Total
Assets:
Recurring fair value measurements
Financial assets at fair value
through profit or loss
- -
Equity securities $ 41,179 $ $ $ 41,179
Beneficiary certificates 10,179 - - 10,179
- -
51,358 51,358
Financial assets at fair value
through other comprehensive
income
Equity securities 377,084 - - 377,084
$ 428,442 $ - $ - $ 428,442
----- End of picture text -----

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

• (a) The instruments the Company used market quoted prices as their fair values (that is, Level 1) are listed below by characteristics:

Listed shares Open-end fund Market quoted price Closing price Net asset value

• (b) Except for financial instruments with active markets, the fair value of other financial instruments is measured by using valuation techniques or by reference to counterparty quotes. The fair value of financial instruments measured by using valuation techniques can be referred to current fair value of instruments with similar terms and characteristics in substance, discounted cash flow method or other valuation methods, including calculated by applying model using market information available at the consolidated balance sheet date (i.e. yield curves on the Taipei Exchange, average commercial paper interest rates quoted from Reuters).

• E. The Company takes into account adjustments for credit risks to measure the fair value of financial and non-financial instruments to reflect credit risk of the counterparty and the Company’s credit quality.

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

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

13. Supplementary Disclosures

(According to the current regulatory requirements, the Company is only required to disclose the information for the year ended December 31, 2022)

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(1) Significant transactions information

• A. Loans to others: None.

• B. Provision of endorsements and guarantees to others: Refer to table 1.

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

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

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

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

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

• H. Receivables from related parties reaching $100 million or 20% of paid-in capital or more: None.

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

• J. Significant inter-company transactions during the reporting periods: Refer to table 4.

(2) Information on investees

Names, locations and other information of investee companies (not including investees in Mainland China): Refer to table 5.

(3) Information on investments in Mainland China

• A. Basic information: Refer to table 6.

• B. Significant transactions conducted with investees in Mainland China directly or indirectly through other companies in the third areas: Purchases and sales between the Company and investees in Mainland China are eliminated when preparing consolidated financial statements. Information on significant transactions, such as purchases and sales, receivables and payables, provision of endorsements and guarantees and financing, between the Company and investees in Mainland China is provided in Note 13(1)A, B and J.

(4) Major shareholders information

Major shareholders information: Refer to table 7.

14. Segment Information

Not applicable.

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CHUN YU WORKS & CO., LTD. STATEMENT OF CASH AND CASH EQUIVALENTS DECEMBER 31, 2022

(Expressed in thousands of New Taiwan dollars)

Item Cash: Cash on hand Checking accounts Demand deposits - NTD Demand deposits - Foreign currency Cash equivalents: Time deposits - NTD	Description USD 515 thousand, exchange rate: 30.71 EUR 435 thousand, exchange rate: 32.72 CNY 1 thousand, exchange rate: 4.4080 JPY 1 thousand, exchange rate: 0.232	Amount 64 $ 106 492,092 15,817 14,230 1 1
		522,311 1,330,000
		1,852,311 $

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CHUN YU WORKS & CO., LTD. STATEMENT OF ACCOUNTS RECEIVABLE, NET DECEMBER 31, 2022

(Expressed in thousands of New Taiwan dollars)

==> picture [506 x 146] intentionally omitted <==

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

Client Name Description Amount Note
E-SHENG STEEL CO., LTD. Accounts receivable $ 143,952 －
" －
British Gypsum 74,138
Chi Rei Co., Ltd. " 32,210 －
" －
Others (each item not exceeding 5%) 340,309
590,609
Less: Allowance for uncollectible accounts ( 1,360)
$ 589,249
----- End of picture text -----

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CHUN YU WORKS & CO., LTD. STATEMENT OF INVENTORIES DECEMBER 31, 2022

(Expressed in thousands of New Taiwan dollars)

			Amount	Amount	Amount
					Net Realisable
	Item		Cost		Value	Note
Raw materials		$	535,330	$	548,291	Refer to Note 4(8)
Supplies			193,720		267,717	for determination of net
Work in progress			390,862		509,624	realisable value method.
Finished goods			624,075		683,886
			1,743,987	$	2,009,518
Less: Allowance for inventory		(	30,852)
valuation	loss	$	1,713,135

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CHUN YU WORKS & CO., LTD.

STATEMENT OF NON-CURRENT FINANCIAL ASSETS MEASURED AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED DECEMBER 31, 2022

(Expressed in thousands of New Taiwan dollars)

Name of Financial Assets		BeginningBalance(Note)	BeginningBalance(Note)	Number of (In thousands) Amount - - $ 2,363) ( 15,905) ( - - 14) ( - 2,377) ( 15,905) ( 118,328) ( 134,233) ($ Decrease		EndingBalance	Collateral	Note
		Number of (In thousands) 11,678 4,333 304 14 16,329	Amount 258,939 $ 29,167 772 - 288,878 88,206 377,084 $			Number of (In thousands) Amount 11,678 258,939 $ 1,970 13,262 304 772 - - 13,952 272,973 30,122) ( 242,851 $
Listed stocks: Taiwan Styrene Monomer Corporation China Ecotek Corporation Unlisted stocks: King Kong Iron Works, Ltd. Valuation adjustment Pacific Electric Wire & Cable Co., Ltd.							None None None None	－ － － －

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CHUN YU WORKS & CO., LTD.

STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

FOR THE YEAR ENDED DECEMBER 31, 2022

(Expressed in thousands of New Taiwan dollars)

Name of Investees	Number of shares (In thousands) Amount 15,000 199,514 $ 3,800 283,422 56,306 139,118 10,000 136,172 33,183 1,000,185 1,000 256,443 14,370 577,294 28,822 455,418 162,481 3,047,566 $ BeginningBalance	Number of shares (In thousands) Amount - 12,463 $ - 80,180 18,582 34,834 - 11,795 - 19,583 - 25,944 - 181,095 - 61,260 18,582 427,154 $ Addition	Number of shares (In thousands) Amount - 27,366) ($ - - - 72,754) ( - 20,850) ( - - - 29,227) ( - 116,430) ( - 32,343) ( - 298,970) ($ Decrease	EndingBalance	EndingBalance		Unitprice Total Amount $ 11.69 175,411 $ 96.18 365,486 8.86 663,522 12.70 126,996 30.81 1,022,500 253.61 253,610 42.79 614,959 18.04 520,089 3,742,573 $ Market Value or Net Assets Value	Unitprice Total Amount $ 11.69 175,411 $ 96.18 365,486 8.86 663,522 12.70 126,996 30.81 1,022,500 253.61 253,610 42.79 614,959 18.04 520,089 3,742,573 $ Market Value or Net Assets Value	Collateral	Footnote
	Number of shares (In thousands)		Number of shares (In thousands)	Number of shares (In thousands)	Shareholding	Amount
Chun Bang Precision Co., Ltd. (Note) Chun Yu Works (USA) Inc. Chun Yu Investment Corp. Chun Yu Bio-Tech Corp. Scholar Holdings Ltd. Sunny City International Limited Pt Moon Lion Industries Indonesia Chun Zu Machinery Industry Co., Ltd.	15,000 3,800 56,306 10,000 33,183 1,000 14,370 28,822 162,481		- - - - - - - - -	15,000 3,800 74,888 10,000 33,183 1,000 14,370 28,822	100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 71.85% 47.81%	184,611 $ 363,602 101,198 127,117 1,019,768 253,160 641,959 484,335	$ 11.69 96.18 8.86 12.70 30.81 253.61 42.79 18.04		None None None None None None None None	－ － － － － － － －
				181,063		3,175,750 $		3,742,573 $

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CHUN YU WORKS & CO., LTD. STATEMENT OF CHANGES IN PROPERTY, PLANT AND EQUIPMENT - COST FOR THE YEAR ENDED DECEMBER 31, 2022

(Expressed in thousands of New Taiwan dollars)

Information relating to property, plant and equipment is provided in Note 6(7).

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CHUN YU WORKS & CO., LTD. STATEMENT OF CHANGES IN ACCUMULATED DEPRECIATION OF PROPERTY, PLANT AND EQUIPMENT FOR THE YEAR ENDED DECEMBER 31, 2022

(Expressed in thousands of New Taiwan dollars)

Information relating to property, plant and equipment is provided in Note 6(7). Information relating to depreciation methods and useful lives is provided in Note 4(13).

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CHUN YU WORKS & CO., LTD. STATEMENT OF CHANGES IN DEFERRED TAX ASSETS FOR THE YEAR ENDED DECEMBER 31, 2022 (Expressed in thousands of New Taiwan dollars)

Information relating to income tax is provided in Note 6(26).

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CHUN YU WORKS & CO., LTD. STATEMENT OF SHORT-TERM BORROWINGS DECEMBER 31, 2022

(Expressed in thousands of New Taiwan dollars)

Nature Unsecured borrowings	Description HSBC Bank (Taiwan) Taipei Fubon Bank	Ending Balance 150,026 $ 30,199 180,225 $	Range of Contract Period Interest 2022.11.17～2023.03.28 Note 2022.12.29～2023.03.29 Note	Credit Line 217,000 $ 46,500	Collateral Footnote None － None －

Note: Interest rate ranged from 2.48% to5.63%.

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CHUN YU WORKS & CO., LTD. STATEMENT OF ACCOUNTS PAYABLE DECEMBER 31, 2022

(Expressed in thousands of New Taiwan dollars)

Suppliers Name Description E-SHENG STEEL CO., LTD. Accounts payable YIXUAN METAL CO., LTD. " Hong Yi Carton Ltd. " Others (each item not exceeding 5%) "	Amount Note 42,676 $ － 10,107 － 6,731 － 55,121 － 114,635 $

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CHUN YU WORKS & CO., LTD. STATEMENT OF OTHER PAYABLES DECEMBER 31, 2022

(Expressed in thousands of New Taiwan dollars)

Item Description		Amount	Note
Annual bonus payable	$	35,895	－
Wages and salaries payable		32,416	－
Processing expenses payable		29,507	－
Employees' compensation and directors'
remuneration		28,119	－
Others (each item not exceeding 5%)		89,938	－
	$	215,875

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CHUN YU WORKS & CO., LTD. STATEMENT OF BONDS PAYABLE DECEMBER 31, 2022

(Expressed in thousands of New Taiwan dollars)

Items Guarantee bank 1th Guarantee ordinary bonds payable in 2021 (Note) 1th Guarantee convertible bonds payable in 2022 (Note) 2nd Guarantee convertible bonds payable in 2022 (Note) 3rd Guarantee convertible bonds payable in 2022 (Note)	Issue date	Date of interestrepaymen	t Coupon rate		Amount	Amount	Bookvalue Repayment term 2,995,329 $ (Note) 686,164 (Note) 490,132 (Note) 391,980 (Note) 4,563,605 $	Collateral	Note
				Total issue amount	Repayment	Ending balance
	2021.10.15 2022.03.25 2022.03.25 2022.03.25	(Note) (Note) (Note) (Note)	(Note) (Note) (Note) (Note)	3,000,000 $ 700,000 500,000 400,000 4,600,000 $	- $ - - - - $	3,000,000 $ 700,000 500,000 400,000 4,600,000 $		(Note) (Note) (Note) (Note)	- - - -

(Note) Please refer to Note 6(12) for the information related to bonds payable.

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CHUN YU WORKS & CO., LTD. STATEMENT OF DEFERRED TAX LIABILITIES FOR THE YEAR ENDED DECEMBER 31, 2022 (Expressed in thousands of New Taiwan dollars)

Information relating to income tax is provided in Note 6(26).

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CHUN YU WORKS & CO., LTD. STATEMENT OF OPERATING REVENUE FOR THE YEAR ENDED DECEMBER 31, 2022

(Expressed in thousands of New Taiwan dollars)

Item Annealing wires Taps Polished wires Screws Steel billet Nuts Black oxide coating Processing fees revenue Others Total sales revenue Less: Sales returns Sales discounts and allowances	Volume (ton) Amount 37,073 1,366,179 $ 13,840 1,348,987 28,001 779,568 14,137 719,393 34,411 686,930 4,740 368,737 8,558 228,673 20,353 2,890 5,521,710 1,173 38,458) ( 4,294) ( 5,478,958 $	Note
		－ － － － － － － － －

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CHUN YU WORKS & CO., LTD. STATEMENT OF OPERATING COSTS FOR THE YEAR ENDED DECEMBER 31, 2022

(Expressed in thousands of New Taiwan dollars)

Item			Amount
Beginning raw materials		$	1,058,726
Add: Raw materials purchased			2,846,302
Less: Transfers to expenses	(		125)
Sell raw materials	(		686,930)
Ending raw materials	(		535,330)
Raw materials used during the year			2,682,643
Beginning supplies			162,187
Add: Supplies purchased			359,017
Ending supplies	(		193,720)
Supplies used during the year			327,484
Direct labor			188,102
Manufacturing expense			798,182
Manufacturing cost			3,996,411
Beginning work in progress			527,848
Add: Transfers from finished goods			29,291
Ending work in progress	(		390,862)
Cost of finished goods			4,162,688
Beginning finished goods			647,957
Add: Finished goods purchased			84,898
Less: Transfers to work in progress	(		29,291)
Ending finished goods	(		624,075)
Production and sales cost			4,242,177
Add: cost of raw materials sold			686,930
Cost of goods sold			4,929,107
Loss on decline in market value			14,906
Revenue from sales of scraps	(		27,000)
Operating costs		$	4,917,013

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CHUN YU WORKS & CO., LTD. STATEMENT OF MANUFACTURING EXPENSE FOR THE YEAR ENDED DECEMBER 31, 2022

(Expressed in thousands of New Taiwan dollars)

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

Item Description Amount Note
Processing expense $ 203,474 －
Indirect labor －
124,679
Utilities expense －
110,613
Depreciation charge －
103,255
Fuel expense －
83,522
Repairs and maintenance expense －
56,355
－
Others (each item not exceeding 5%) 116,284
$ 798,182
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~82~

CHUN YU WORKS & CO., LTD. STATEMENT OF SELLING EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2022

(Expressed in thousands of New Taiwan dollars)

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Item Description Amount Note
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Export expense Freight Wages and salaries Other expenses (each item not exceeding 5%)	72,954 $ － 31,603 － 27,195 － 20,771 － 152,523 $

~83~

CHUN YU WORKS & CO., LTD. STATEMENT OF ADMINISTRATIVE EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2022

(Expressed in thousands of New Taiwan dollars)

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Item Description Amount Note
----- End of picture text -----

Wages and salaries Directors’ remuneration Depreciation charge Other expenses (each item not exceeding 5%)	63,141 $ － 20,470 － 8,767 － 48,879 － 141,257 $

~84~

CHUN YU WORKS & CO., LTD. STATEMENT OF RESEARCH AND DEVELOPMENT EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2022

(Expressed in thousands of New Taiwan dollars)

Item	Description		Amount	Note
Wages and salaries		$	6,766	－
Insurance expense			707	－
Other expenses (each item not exceeding 5%)			1,951	－
		$	9,424

~85~

CHUN YU WORKS & CO., LTD. STATEMENT OF OTHER INCOME FOR THE YEAR ENDED DECEMBER 31, 2022 (Expressed in thousands of New Taiwan dollars)

Information relating to other income is provided in Note 6(21).

~86~

CHUN YU WORKS & CO., LTD. STATEMENT OF FINANCE COST FOR THE YEAR ENDED DECEMBER 31, 2022

(Expressed in thousands of New Taiwan dollars)

Information relating to finance costs is provided in Note 6(23).

~87~

CHUN YU WORKS & CO., LTD. SUMMARY STATEMENT OF CURRENT PERIOD EMPLOYEE BENEFITS, DEPRECIATION, DEPLETION AND AMORTISATION EXPENSES BY FUNCTION FOR THE YEAR ENDED DECEMBER 31, 2022

(Expressed in thousands of New Taiwan dollars)

Information relating to expenses by nature is provided in Note 6(24). Information relating employee benefit expense is provided in Note 6(25).

~88~

Chun Yu Works & Co., Ltd. Provision of endorsements and guarantees to others For the year ended December 31, 2022

Table 1

Expressed in thousands of NTD

Number	Endorser/ guarantor	Party being endorsed/guaranteed	Party being endorsed/guaranteed	Limit on endorsements/ guarantees provided for a singleparty	Maximum outstanding endorsement/ guarantee amount as of December 31, 2022	Outstanding endorsement/ guarantee amount at December 31, 2022	Actual amount drawn down	Amount of endorsements/ guarantees secured with collateral	Ratio of accumulated endorsement/ guarantee amount to net asset value of the endorser/ guarantor company	Ceiling on total amount of endorsements/ guarantees provided	Provision of endorsements/ guarantees by parent company to subsidiary	Provision of Provision of endorsements/ endorsements/ guarantees by guarantees to subsidiary to the party in parent Mainland company China Footnote	Provision of Provision of endorsements/ endorsements/ guarantees by guarantees to subsidiary to the party in parent Mainland company China Footnote	Provision of Provision of endorsements/ endorsements/ guarantees by guarantees to subsidiary to the party in parent Mainland company China Footnote
		Companyname	Relationship with the endorser/ guarantor （Note 1）
0	Chun Yu Works & Co., Ltd.	Chun Yu Works (USA) Inc. Chun Yu (Dongguan) Metal Products Co., Ltd. Shanghai Uchee Hardware Products Ltd.	2 2 2	2,572,567 $ 2,572,567 2,572,567	225,505 $ 1,127,525 45,084	$ - 614,200 -	$ - 319,725 -	$ - - -	0.00% 14.32% 0.00%	3,430,090 $ 3,430,090 3,430,090	Y Y Y	N N N	N Y Y	(Note 2) (Note 2) (Note 2)

(Note 1) The numbers filled in for the relationship with the Company are as follows:

1. Having business relationship.

2. The Company direct and indirect owns over 50% ownership of the investee company.

(Note 2) The total amount of transactions of endorsement equals to 80% of the Company's net worth, the limit of endorsement for any single entity is 60% of the Company's net worth, and all of the related transactions are to be submitted to the stockholders' meeting for reference.

(Note 4) Foreign currencies are translated into New Taiwan dollars. Exchange rate of foreign currencies indicated as of report date were as follow: USD:NTD 1:30.7100, RMB:NTD 1:4.4100.

Table 1 Page 1

Chun Yu Works & Co., Ltd.

Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures) For the year ended December 31, 2022

Securities held by Table 2	Marketable securities	Relationship with the securities issuer	General ledger account (Note 1)		As of December 31,2022	As of December 31,2022	Fair value Footnote Expressed in thousands of NTD	Fair value Footnote Expressed in thousands of NTD
				Number of shares (In thousands of shares or units)	Book value	Ownership (%)	Fair value
Chun Yu Works & Co., Ltd. Chun Bang Precision Co., Ltd. Chun Yu Investment Corp. Chun Yu Bio-tech Corp.	Stocks - D-Link Corporation Stocks - OFCO Industrial Corporation Stocks - Taiwan Styrene Monomer Corporation Stocks - China Ecotek Corporation Stocks - King Kong Iron Works, Ltd. Beneficiary certificates - Yuanta Taiwan High-yield Leading Company Fund - NTD Beneficiary certificates - PGIM USD High Yield Bond Fund-USD Beneficiary certificates - FSITC Taiwan Core Strategic Infrastructure Fund Stocks - The First Insurance Co., Ltd. Stocks - Taiwan Styrene Monomer Corporation Stocks - Chun Yu Works & Co., Ltd. Stocks - Taiwan Styrene Monomer Corporation Stocks - Chun Zu Machinery Industry Co., Ltd. Stocks - Taiwan Styrene Monomer Corporation	Other related party Other related party － － － － － － － － The Company － Subsidiary －	1 1 2 2 2 1 1 1 1 2 1 2 2 2	2,273 215 11,678 1,970 304 500 300 500 10 6,440 22,314 6,608 9 1,500	33,753 $ 5,321 157,653 84,426 772 3,935 2,771 4,473 158 86,940 562,324 89,208 160 20,250	0.38 0.22 2.21 1.59 0.55 - - - - 1.22 7.38 1.25 0.01 0.28	33,753 $ 5,321 157,653 84,426 772 3,935 2,771 4,473 158 86,940 562,324 89,208 160 20,250	- - - - - - - - - - (Note 2) (Note 3) - - -

(Note 1) The code number explanation is as follows:

1. Financial assets at fair value through profit or loss - current.

2. Financial assets at fair value through other comprehensive profit or loss- non-current.

3. (Note 2) The Company’s stocks held by Chun Yu Investment Corporation, shown as ‘Financial assets at fair value through profit or loss - Current’, were measured at fair value. The fair value changes were recognised in profit or loss for the current year.

(Note 3) The cost of $267,195 was recognised by the Company under ‘Treasury shares’.

Table 2 Page 1

Chun Yu Works & Co., Ltd.

• Purchases or sales of goods from or to related parties reaching NT$100 million or 20% of paid in capital or more For the year ended December 31, 2022

Table 3

Expressed in thousands of NTD

Purchaser/seller	Counterparty	Relationship with the counterparty			Transaction		transactions Differences in transaction terms compared to third party	transactions Differences in transaction terms compared to third party	Notes/accountsreceivable (payable)	Notes/accountsreceivable (payable)	Footnote
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unit price	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
Chun Yu Works & Co., Ltd. Chun Yu (Dongguan) Metal Products Co., Ltd. Shanghai Uchee Hardware Products Ltd.	Ofco Industrial Corporation Chun Yu Works (USA) Inc. Shanghai Uchee Hardware Products Ltd. Shanghai Uchee Hardware Products Ltd. Chun Yu (Dongguan) Metal Products Co., Ltd. Chun Yu (Dongguan) Metal Products Co., Ltd.	Other related party Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary	(Sales) (Sales) (Sales) Purchases (Sales) Purchases	701,410) ($ ( 145,934) ( 319,716) 196,090 ( 196,090) 319,716	(13%) (3%) (18%) 11% (25%) 47%	1 month 3 months 3 months 3 months 3 months 3 months	- - - - - -	3 ~ 5 months 4 months (Note 1) (Note 2) (Note 1) (Note 2)	$ 37,713 17,801 179 - - ( 179)	5% 3% - - - -	- - - - - -

(Note 1) The credit terms to third parties are 1 ~ 3 months after the sale.

(Note 2) The payment terms to third parties are 3 ~ 6 months after the acceptance.

(Note 3) Foreign currencies are translated into New Taiwan Dollars using the following exchanges: Ending balance of receivable and payable are translated using the exchange rates as of report date (USD:NTD 1:30.71, RMB:NTD 1:4.41), and the transactions amounts are translated into New Taiwan dollars at the average exchange rate for the year ended December 31, 2022 (USD:NTD 1:29.8038, RMB:NTD 1:4.4258).

Table 3 Page 1

Chun Yu Works & Co., Ltd.

• Significant inter company transactions during the reporting period For the year ended December 31, 2022

Table 4

Expressed in thousands of NTD

Transaction

Number (Note2)	Companyname	Counterparty	Relationship (Note 3)	General ledgeraccount Sales Accounts receivable Provision of endorsements and guarantees Sales Accounts receivable Sales Sales Sales Other receivables Sales Accounts receivable Other receivables Sales Other receivables Sales	Amount 145,934 $ 17,801 614,200 74,274 16,212 13,883 11,701 18,038 13,238 38,129 10,650 20,560 319,716 35,219 196,090	Transactionterms	Percentage of consolidated total operating revenue or totalassets (Note4)
0 1 2 3 4 5	Chun Yu Works & Co., Ltd. Chun Bang Precision Co., Ltd. Chun Zu Machinery Industry Co., Ltd. Shanghai Chun Zu Machinery Industry Ltd. Chun Yu (Dongguan) Metal Products Co., Ltd. Shanghai Uchee Hardware Products Ltd.	Chun Yu Works (USA) Inc. Chun Yu (Dongguan) Metal Products Co., Ltd. Chun Yu Works & Co., Ltd. Pt Moon Lion Industries Indonesia Chun Yu Works & Co., Ltd. Pt Moon Lion Industries Indonesia Shanghai Chun Zu Machinery Industry Ltd. Chun Zu Machinery Industry Co., Ltd. Scholar Holdings Ltd. Shanghai Uchee Hardware Products Ltd. Chun Yu (Dongguan) Metal Products Co., Ltd.	1 1 1 2 2 3 2 3 3 3 3 3 3 3 3			4 months - - 3 months - 3 months 3 months 3 months - (Note 5) - - 3 months - 3 months	1% - 5% 1% - - - - - - - - 3% - 2%

(Note 1) Intercompany transactions between the parent company and its subsidiaries or between subsidiaries are not disclosed repetitively since the circumstances and amounts of each transaction is the same on each side.

In addition, the disclosure threshold for significant intercompany transactions is $10 million and the transactions are disclosed in asset and income aspects .

(Note 2) The transaction information of the Company and the consolidated subsidiaries should be noted in column "Number". The number means:

1. Number 0 presents the Company.

2. The consolidated subsidiaries are in order from number 1.

(Note 3) The relationships among the transation parties are as follows:

1. The Company to the consolidated subsidiary.

2. The consolidated subsidiary to the Company.

3. The consolidated subsidiary to another consolidated subsidiary.

(Note 4) The percentage of transaction amount over consolidated total revenues or total assets is as follows: Assets and liabilities are calculated using the ending balance over the consolidated total assets at period end; Sales is

calculated using the amount of the period over the consolidated total revenue of the period.

(Note 5) The sales of machinery and equipment are handled in accordance with the conditions stipulated in the contract, and some are sold by installments, with a period of 1 to 2 years; spare parts are 3 to 4 months.

(Note 6) For the amounts denominated in foreign currencies, the balances of notes/accounts receivable (payable) are translated into New Taiwan dollars at the exchange rate (USD 1 : NTD 30.71; RMB 1 : NTD 4.41)

prevailing at the financial reporting date, and the transactions amounts are translated into New Taiwan dollars at the average exchange rate for the year ended December 31, 2022 (USD 1 : NTD 29.8038; RMB 1 : NTD 4.4258).

Table 4 Page 1

For the year ended December 31, 2022

Table 5

Chun Yu Works & Co., Ltd. Information on investees

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Sharesheld as atDecember31,2022	Sharesheld as atDecember31,2022	Sharesheld as atDecember31,2022	Net profit (loss) of the investee for the year ended December31,2022	Investment income (loss) recognised by the Company for the year ended December31,2022	Footnote
				Balance as at December 31, 2022	Balance as at December 31, 2021	Number of shares	Ownership (%)	Bookvalue
Chun Yu Works & Co., Ltd. Chun Zu Machinery Industry Co., Ltd.	Chun Bang Precision Co., Ltd. Chun Yu Works (U.S.A.) Inc. Chun Yu Investment Corporation Chun Yu Bio-tech Corporation Scholar Holdings Ltd. Sunny City International Ltd Pt Moon Lion Industries Indonesia Chun Zu Machinery Industry Co., Ltd. Lion City Management Ltd.	Taiwan U.S.A. Taiwan Taiwan Virgin Islands Samoa Indonesia Taiwan Virgin Islands	Manufacture and trade of moulds Import and export of hardware products Professional investment Powder metallurgy Reinvestment and import and export trade Reinvestment and import and export trade Manufacture and trade of screws and nuts Manufacture and trade of machinery Professional investment	125,344 $ 114,728 267,652 90,260 2,581,891 84,824 154,760 52,597 61,420	125,344 $ 114,728 267,652 90,260 2,581,891 84,824 154,760 52,597 61,420	15,000,000 3,800,000 74,888,032 10,000,000 33,183,211 1,000,000 14,370,000 28,821,939 -	100.00 100.00 100.00 100.00 100.00 100.00 71.85 47.81 100.00	184,611 $ 363,602 101,198 127,117 1,019,768 253,160 641,959 484,335 584,490	5,030 $ 46,836 94,590) ( 11,810 5,221 22,207 242,977 110,989 85,223	12,463 $ 47,209 805 11,787 7,054 22,207 174,579 52,425 -	A subsidiary A subsidiary A subsidiary A subsidiary A subsidiary A subsidiary A subsidiary A subsidiary A subsidiary (Note 1)

(Note 1) According to the related regulations, it is not required to disclose income (loss) recognized by the Company.

(Note 2) Foreign currencies are translated into New Taiwan Dollars using the following exchanges: Ending balance of receivable and payable are translated using the exchange rates as of report date (USD:NTD 1:30.7100, RMB:NTD 1:4.4100), and the transactions amounts are translated into New Taiwan dollars at the average exchange rate for the year ended December 31, 2022 (USD:NTD 1:29.8038, RMB:NTD 1:4.4258).

Table 5 Page 1

Chun Yu Works & Co., Ltd. Information on investments in Mainland China For the year ended December 31, 2022

Table 6

Investee in MainlandChina Table 6	Main business activities	Paid-in capital	Investment method	Accumulated amount of remittance from Taiwan to Mainland China as of January 1, 2022	ended December31,2022 Amount remitted back to Taiwan for the year Amount remitted from Taiwan to Mainland China/		Accumulated amount of remittance from Taiwan to Mainland China as of December 31, 2022	Net income of investee for the year ended December31,2022	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the year ended December 31,2022	Book value of investments in Mainland China as of December 31, 2022	Accumulated amount of investment income remitted back to Taiwan as of December 31, 2022 Footnote Expressed in thousands of NTD
					Remitted to Mainland China	Remitted back to Taiwan
Chun Yu (Dongguan) Metal Products Co., Ltd. Shanghai Uchee Hardware Products Ltd. Chunyu Group Shanghai Tongsheng Trade Co., Ltd. Shanghai Chun Zu Machinery Industry Ltd. Companyname	Manufacture and trade of screws and nuts Trade of screws and nuts Trade of screws and nuts Manufacture and trade of machinery Accumulated amount of remittance from Taiwan to Mainland China as of December 31, 2022	$ 1,980,212 (Note 1) 30,710 8,169 261,035 (Note 2) Investment amount approved by the Investment Commission of the Ministry of Economic Affairs(MOEA)	(Note 3) (Note 4) (Note 5) (Note 6) Ceiling on investments in Mainland China imposed by the Investment Commission of MOEA(Note 10)	1,480,007 $ 30,710 - 61,420	- $ - - -	- $ - - -	1,480,007 $ 30,710 - 61,420	5,332 $ 22,226 109 85,163	100% 100% 100% 47.82%	5,322 $ 22,226 109 40,725	1,049,453 $ 251,324 3,969) ( 277,049	- $ 53,773 (Note 7) - 447,013 (Note 8)	(Note 9) (Note 9) (Note 9) (Note 10)
Chun Yu Works & Co., Ltd. Chun Zu Machinery Industry Co., Ltd.	$ 1,735,514 61,420	$ 1,735,514 199,615	$ 3,041,358 652,694

(Note 1) The investment in Chun Yu (Dongguan) Metal Products Co., Ltd. amounted to US$64,481 thousand, consisting of US$48,193 thousand that has been reported to the Investment Commission and US$16,289 thousand from an investment loan from Scholar Holdings Ltd. (Note 2) The paid-in capital of Shanghai Chun Zu Machinery Industry Ltd. amounted to UD$8,500 thousand, consisting of UD$4,000 thousand from remittance from Chun Zu Machinery Industry Co., Ltd. through its subsidiary, Lion City Management Ltd.

and US$4,500 thousand from capitalisation of retained earnings of Shanghai Chun Zu Machinery Industry Ltd., which were reported to the Investment Commission. In addition, proceeds from capital reduction of Lion City Management Ltd. in 2008 amounting to US$2,000 thousand were reported to the Investment Commission.

(Note 3) Indirect investment in PRC through the existing company (Scholar Holdings Ltd.) located in the third area. (Note 4) Indirect investment in PRC through the existing company (Sunny City International Ltd.) located in the third area. (Note 5) Indirect investment in PRC through the existing company (Shanghai Uchee Hardware Products Ltd.) located in PRC. (Note 6) Indirect investment in PRC through the existing company (Lion City Management Ltd.) located in the third area. (Note 7) It is the cash dividends totaling US$1,751 thousand distributed by Shanghai Uchee Hardware Products Ltd. to Sunny City International Ltd., which then remitted to the Company and Chun Bang Precision Co., Ltd. (Note 8) It is the cash dividends amounting to US$30,439 thousand distributed by Shanghai Chun Zu Machinery Industry Ltd. to Lion City Management Ltd., which then remitted to Chun Zu Machinery Industry Co., Ltd. (Note 9) Investment gains or losses were recognised based on audited financial statements. (Note 10) The ceiling is calculated based on the 60% of the investor’s net assets or consolidated net assets (whichever is higher).

(Note 11) For the amounts denominated in foreign currencies, the paid-in capital, amount of remittance from Taiwan and book value as of December 31, 2022 are translated into New Taiwan dollars at the exchange rate (USD 1 : NTD 30.7100; RMB 1 : NTD 4.4100) prevailing at the financial reporting date, and the net profit (loss) of the investee and investment income (loss) recognised by the Group for the year ended December 31, 2022 are translated into New Taiwan dollars at the average exchange rate for the year ended December 31, 2022 (USD 1 : NTD 29.8038; RMB 1 : NTD 4.4258).

Table 6 Page 1

Chun Yu Works & Co., Ltd. Major shareholders information

December 31, 2022

Table 7

Unit: shares

Name of major shareholders	Shares	Shares
	Number of shares held	Ownership (%)
Bai Jia Yuan Investment Co., Ltd. Jin Jhih Fu Assets Management Co., Ltd. Chun Yu Investment Co., Ltd.	84,219,450 28,491,850 23,430,172	27.87% 9.43% 7.75%

(Note) The major shareholders information was derived from the data that the Company issued common shares (including treasury shares) and preference shares in dematerialised form which were registered and held by the shareholders above 5% on the last operating date of each quarter and was calculated by Taiwan Depository & Clearing Corporation. The share capital which was recorded in the financial statements may be different from the actual number of shares issued in dematerialised form due to the different calculation basis.

Table 7 Page 1