CHUN YU — Audit Report / Information 2023

Nov 13, 2023

CHUN YU WORKS & CO., LTD.

PARENT COMPANY ONLY FINANCIAL

STATEMENTS AND INDEPENDENT AUDITORS’

REPORT DECEMBER 31, 2023 AND 2022

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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 of December 31, 2023 and 2022, 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 material accounting policies.

In our opinion, based on our audits and the reports of other auditors (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 of December 31, 2023 and 2022, 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 Financial Statement Audit and Attestation Engagements of 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. Based 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 2023 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.

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Key audit matters for the Company’s 2023 parent company only financial statements are stated as follows:

Cut-off of revenue from export sales

Description

Refer to Note 4(28) for accounting policy on revenue recognition and Note 6(18) for details of operating revenue.

The Company derives its revenues from the sales of screws, nuts and wire rods, etc., and revenues from export sales account for a high percentage of total revenue. Export sales are recognised 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 recognised 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, 2023, the inventories and allowance for

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inventory valuation losses amounted to NT$1,343,597 thousand and NT$26,947 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 slow-moving 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 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.

3. 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 under equity method amounted to NT$1,138,262 thousand and NT$1,005,561 thousand as of December 31,2023 and 2022, respectively, and the share of profit recognised from subsidiaries, associates and joint ventures accounted for using the equity method amounted to

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NT$224,711 thousand and NT$221,788 thousand 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 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

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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.

1. 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.

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

3. 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.

4. 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.

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

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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.

Tien, Chung-Yu Independent Accountants

Hsu, Huei-Yu

PricewaterhouseCoopers, Taiwan Republic of China March 7, 2024

------------------------------------------------------------------------------------------------------------------------------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, 2023 AND 2022

(Expressed in thousands of New Taiwan dollars)

Assets	Notes 6(1) 6(2) 6(1) 6(3) 6(3) 6(3) and 7 7 5(2) and 6(4) 7 6(2) 6(5) 6(6) 6(7), 7 and 8 6(8) 6(9) and 8 6(10) 6(25) 6(7) and 7	December 31, 2023 AMOUNT % $ 1,723,953 19 2,992 - 130,000 1 40,823 - 469,504 5 119,770 1 11,030 - 17,588 - 1,316,650 14 22,499 - 3,854,809 40 127,050 1 453,478 5 3,309,541 35 1,756,109 18 71 - 20,957 - 1,860 - 121,922 1 6,475 - 11,202 - 681 - 5,809,346 60 $ 9,664,155 100	December 31, 2022	December 31, 2022
		AMOUNT $ 1,723,953 2,992 130,000 40,823 469,504 119,770 11,030 17,588 1,316,650 22,499 3,854,809 127,050 453,478 3,309,541 1,756,109 71 20,957 1,860 121,922 6,475 11,202 681 5,809,346 $ 9,664,155	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	%
Current assets 1100 Cash and cash equivalents 1110 Financial assets at fair value through profit or loss - current 1136 Financial assets at amortised cost - current 1150 Notes receivable, net 1170 Accounts receivable, net 1180 Accounts receivable - related parties 1200 Other receivables 1210 Other receivables - related parties 130X Inventory 1410 Prepayments 11XX Total current assets Non-current assets 1510 Financial assets at fair value through profit or loss - non-current 1517 Financial assets at fair value through other comprehensive income - non- current 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 equipment 1920 Guarantee deposits paid 1990 Other non-current assets 15XX Total non-current assets 1XXX Total assets				19 - - 1 6 1 - - 18 -
				45
				- 2 33 19 - - - 1 - - -
				55
				100

(Continued)

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CHUN YU WORKS & CO., LTD. PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2023 AND 2022

(Expressed in thousands of New Taiwan dollars)

Liabilities and Equity

December 31, 2023 December 31, 2022 Notes AMOUNT % AMOUNT % 6(11) $ 143,062 2 $ 180,225 2 6(18) 16,183 - 15,318 - 111,675 1 114,635 1 7 14,678 - 16,098 - 7 170,086 2 215,875 3 6(25) 12,832 - 6,377 - 6(8) 54 - 215 - 468,570 5 548,743 6 6(12) and 8 4,578,558 47 4,563,605 47 6(25) 331,839 4 326,801 3 6(8) - - 54 - 6(13) 6,995 - 27,305 - 457 - 457 - 4,917,849 51 4,918,222 50 5,386,419 56 5,466,965 56 6(14) 3,021,627 31 3,021,627 31 6(6)(12)(14)(15) 501,353 5 477,923 5 6(5)(14)(16)(17) 336,485 4 302,397 3 430,610 4 430,610 5 649,496 7 653,326 7 6(5)(6)(17) ( 394,640) ( 4) ( 331,076) ( 4 ) 6(14)(15) ( 267,195) ( 3) ( 267,195) ( 3 ) 4,277,736 44 4,287,612 44 9 11 $ 9,664,155 100 $ 9,754,577 100

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 Non-current liabilities 2530 Bonds payable 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 Significant Events after the Balance Sheet Date 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 FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022

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

Items

Year ended December 31 2023 2022 Notes AMOUNT % AMOUNT % 6(18) and 7 $ 3,381,977 100 $ 5,478,958 100 6(4)(10)(13)(23)(24) and 7 ( 3,206,905) ( 95) ( 4,917,013) ( 90) 175,072 5 561,945 10 6(8)(9)(10)(13)(23)(2 4), 7 and 12 ( 87,088) ( 3) ( 152,523) ( 3) ( 144,224) ( 4) ( 141,257) ( 2) ( 6,708) - ( 9,424) - ( 3,860) - 547 - ( 241,880) ( 7) ( 302,657) ( 5) ( 66,808) ( 2) 259,288 5 6(19) 24,791 1 4,974 - 6(2)(5)(9)(20) and 7 29,737 1 41,719 1 6(2)(8)(21) and 12 117,939 4 74,840 1 6(8)(22) ( 89,836) ( 3) ( 82,024) ( 1) 6(6) 276,269 8 328,529 6 358,900 11 368,038 7 292,092 9 627,326 12 6(25) ( 38,467) ( 1) ( 89,823) ( 2) $ 253,625 8 $ 537,503 10 6(13) $ 7,092 - $ 22,532 1 6(5) 6,756 - ( 33,460) ( 1) 6(6) 31,292 1 ( 46,529) ( 1) 6(25) ( 1,418) - ( 4,506) - 6(6)(17) ( 28,816) ( 1) 51,957 1 6(17)(25) 326 - ( 327) - $ 15,232 - ($ 10,333) - $ 268,857 8 $ 527,170 10 6(26) $ 0.91 $ 1.93 $ 0.82 $ 1.81

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 (loss) gain 6000 Total operating expenses 6900 Operating (loss) 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 under 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 on defined benefit plan 8316 Unrealised gains (losses) from investments in equity instruments measured at fair value through other comprehensive income 8330 Share of other comprehensive income (loss) of associates and joint ventures accounted for under 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 income that will not be reclassified to profit or loss Components of other comprehensive income (loss) that will be reclassified to profit or loss 8361 Exchange differences on translation 8399 Aggregated income tax relating to components of other comprehensive income 8300 Total other comprehensive income (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 FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022

(Expressed in thousands of New Taiwan dollars)

For the year ended December 31, 2022 Balance at January 1, 2022 Profit for the year Other comprehensive income (loss) for the year Total comprehensive income (loss) 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 For the year ended December 31, 2023 Balance at January 1, 2023 Profit for the year Other comprehensive income (loss) for the year Total comprehensive income (loss) Distribution of second half of 2022 net income: Legal reserve Cash dividends Proceeds from disposal of financial assets at fair value through other comprehensive income The Company's dividends received by subsidiaries Balance at December 31, 2023	Notes		Share capital - common stock		Capital from retained earnings		Retained Earnings	Retained Earnings	Retained Earnings	Retained Earnings	Other Equity Interest	Other Equity Interest	Treasury stocks		Total equity
							Legal reserve	Special reserve		Unappropriated retained earnings	Financial statements translation differences of foreign operations	Unrealised gains or losses from financial assets measured at fair value through other comprehensive income
	6(6)(17) 6(16) 6(14)(16) 6(16) 6(5)(17) 6(12)(15) 6(6)(14)(15) 6(6)(17) 6(16) 6(5)(17) 6(6)(14)(15)		$ 2,877,740 - - - - - 143,887 - - - - - $ 3,021,627 $ 3,021,627 - - - - - - - $ 3,021,627		$ 222,103 - - - - - - - - - 221,790 34,030 $ 477,923 $ 477,923 - - - - - - 23,430 $ 501,353		$ 233,702 - - - 37,754 - - 30,941 - - - - $ 302,397 $ 302,397 - - - 34,088 - - - $ 336,485		$ 430,610 - - - - - - - - - - - $ 430,610 $ 430,610 - - - - - - - $ 430,610	$ 654,473 537,503 27,919 565,422 ( 37,754 ) ( 287,774 ) ( 143,887 ) ( 30,941 ) ( 151,081 ) 84,868 - - $ 653,326 $ 653,326 253,625 5,666 259,291 ( 34,088 ) ( 302,163 ) 73,130 - $ 649,496	($ 214,721 ) - 51,630 51,630 - - - - - - - - ($ 163,091 ) ($ 163,091 ) - ( 28,490 ) ( 28,490 ) - - - - ($ 191,581 )	$ 6,765 - ( 89,882 ) ( 89,882 ) - - - - - ( 84,868 ) - - ($ 167,985 ) ($ 167,985 ) - 38,056 38,056 - - ( 73,130 ) - ($ 203,059 )	($ 267,195 ) - - - - - - - - - - - ($ 267,195 ) ($ 267,195 ) - - - - - - - ($ 267,195 )	$ 3,943,477 537,503 ( 10,333 ) 527,170 - ( 287,774 ) - - ( 151,081 ) - 221,790 34,030 $ 4,287,612 $ 4,287,612 253,625 15,232 268,857 - ( 302,163 ) - 23,430 $ 4,277,736

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 FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax Adjustments Adjustments to reconcile profit (loss) Net (gain) loss on financial assets at fair value through profit or loss Expected credit losses (gains) (Reversal of allowance) provision for inventory market price decline Share of profit of subsidiaries, associates and joint ventures accounted for using the equity method Depreciation (Gain) loss on disposal of property, plant and equipment Loss from lease modification Amortization Interest income Dividend 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 generated from operations Interest received Dividends received Interest paid Income tax paid Net cash flows from operating activities

Year ended December 31 Notes 2023 2022 $ 292,092 $ 627,326 ( 92,637 ) 14,920 12 3,860 ( 547 ) 6(4) ( 3,905 ) 14,906 6(6) ( 276,269 ) ( 328,529 ) 6(7)(8)(9) 108,320 113,079 6(21) ( 338 ) 2,735 6(8)(21) - 32 6(10)(23) 1,097 1,149 6(19) ( 24,791 ) ( 4,974 ) 6(20) ( 3,008 ) ( 15,645 ) 6(22) 89,836 82,024 48,848 ( 10,466 ) 9,811 53,322 115,885 509,983 ( 64,145 ) 113,682 ( 8,987 ) 23,743 ( 5,519 ) ( 3,518 ) 400,390 652,731 9,778 1,474 865 4,532 ( 2,960 ) ( 345,634 ) ( 1,420 ) 4,432 ( 52,292 ) ( 83,928 ) ( 13,218 ) ( 6,029 ) 531,293 1,420,800 24,791 4,974 171,392 255,448 ( 74,727 ) ( 71,292 ) ( 31,383 ) ( 18,070 ) 621,366 1,591,860

(Continued)

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CHUN YU WORKS & CO., LTD.

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM INVESTING ACTIVITIES Increase in financial assets at amortised cost - current Acquisition of financial assets at fair value through profit or loss - non-current Acquisition of financial assets at fair value through other comprehensive income - non-current Proceeds from disposal of financial assets at fair value through other comprehensive income 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 equipment Increase in guarantee deposits paid Decrease in other non-current financial assets Net cash flows (used in) from investing activities CASH FLOWS FROM FINANCING ACTIVITIES Decrease in short-term borrowings Payments of lease liabilities Increase in convertible bonds payable Decrease in long-term borrowings Payments of cash dividends Net cash flows used in financing activities Net (decrease) increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year

Year ended December 31 Notes 2023 2022 ($ 130,000 ) $ - ( 36,000 ) - ( 290,263 ) - 6(5) 86,392 100,773 6(27) ( 35,921 ) ( 74,946 ) 984 2,000 6(10) ( 900 ) ( 475 ) ( 2,177 ) ( 14,409 ) ( 2,298 ) ( 2,347 ) - 7,361 ( 410,183 ) 17,957 6(28) ( 37,163 ) ( 752,324 ) 6(28) ( 215 ) ( 433 ) 6(28) - 1,775,874 6(28) - ( 590,000 ) 6(16) ( 302,163 ) ( 438,855 ) ( 339,541 ) ( 5,738 ) ( 128,358 ) 1,604,079 6(1) 1,852,311 248,232 6(1) $ 1,723,953 $ 1,852,311

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 FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022

(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 7, 2024.

• Application of New Standards, Amendments and Interpretations

• (1) Effect of the adoption of new issuances of or amendments to International Financial Reporting Standards (“IFRS[®] ”) Accounting Standards 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 2023 are as follows:

New standards, interpretations and amendments endorsed by the FSC 2023 are as follows:	and became effective fr
New Standards,Interpretations and Amendments	Effective date by International Accounting Standards Board (“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’ Amendments to IAS 12, ‘International tax reform - pillar two model rules’	January 1, 2023 January 1, 2023 January 1, 2023 May 23, 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.

(2) Effect of new issuances of or amendments to IFRS Accounting Standards as endorsed by the FSC but not yet adopted by the Company

New standards, interpretations and amendments endorsed by the FSC and will become effective from 2024 are as follows:

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New Standards,Interpretations andAmendments	Effective date by IASB
Amendments to IFRS 16, ‘Lease liability in a sale and leaseback’ Amendments to IAS 1, ‘Classification of liabilities as current or non-current’ Amendments to IAS 1, ‘Non-current liabilities with covenants’ Amendments to IAS 7 and IFRS 7, ‘Supplier finance arrangements’	January 1, 2024 January 1, 2024 January 1, 2024 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.

(3) IFRS Accounting Standards issued by IASB but not yet endorsed by the FSC

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

Accounting Standards as endorsed by the FSC are as follows:
New Standards,Interpretations andAmendments	Effective date by IASB
Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets between an investor and its associate or joint venture’ IFRS 17, ‘Insurance contracts’ Amendments to IFRS 17, ‘Insurance contracts’ Amendment to IFRS 17, ‘Initial application of IFRS 17 and IFRS 9 – comparative information’ Amendments to IAS 21, ‘Lack of exchangeability’	To be determined by IASB January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2025

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 Material 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 recognised based on the net amount of pension fund assets less 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

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SIC® Interpretations that came into effect as endorsed 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 recognised 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 recognised 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 recognised 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 recognised 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;

• (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.

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• 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 and short-term notes and bills 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 recognised and derecognised using trade date accounting.

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

• D. The Company recognises 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 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.

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(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 recognise changes in fair value in other comprehensive income.

• B. On a regular way purchase or sale basis, financial assets at fair value through other comprehensive income are recognised and derecognised 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 recognised 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 recognised 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 recognises the impairment provision for 12 months expected credit losses if there has not been a significant increase in credit risk since initial recognition or recognises 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 recognises the impairment provision for lifetime ECLs.

(11) Derecognition of financial assets

The Company derecognises 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 under 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 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 recognised in profit

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or loss, and its share of post-acquisition movements in other comprehensive income is recognised 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 recognise 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 recognised 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 recognised 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 derecognised. 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 :
Main building of plant (including accessory equipments)	3 ~ 51 years
Others (including accessory equipments)	3 ~ 15 years
Machinery and equipment	3 ~ 23 years
Utilities equipment	3 ~ 20 years
Transportation equipment	3 ~ 9 years
Office equipment	3 ~ 13 years
Other equipment	2 ~ 14 years

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

• A. Leases are recognised 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 recognised 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 recognises interest expense over the lease term. The lease liability is remeasured and the amount of remeasurement is recognised 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 recognised as an adjustment to the right-of-use asset.

• D. For lease modifications that decrease the scope of the lease, the lessee shall decrease the carrying amount of the right-of-use asset and remeasure the lease liability to reflect the partial or full termination of the lease, and recognise the difference in profit or loss.

(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

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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 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 recognised 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 recognised.

(18) Borrowings

• A. Borrowings comprise long-term and short-term bank borrowings. Borrowings are recognised 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 recognised 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 recognised 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 recognised 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

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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:

• (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 derecognised 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 recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously.

(24) Employee benefits

• A. Short-term employee benefits

Short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in respect of service rendered by employees in a period and should be recognised as expense in that period when the employees render service.

• B. Pensions

(a) Defined contribution plan

For defined contribution plan, the contributions are recognised as pension expense when they

are due on an accrual basis. Prepaid contributions are recognised as an asset to the extent of

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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 recognised 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 recognised in other comprehensive income in the period in which they arise and are recorded as retained earnings.

• 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 recognises expense when it can no longer withdraw an offer of termination benefits or when it recognises 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 recognised 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.

• (25) Income tax

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

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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 recognised, 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 and does not give rise to equal taxable and deductible temporary differences. 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 recognised 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, unrecognised and recognised 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 recognised 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.

(26) 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 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.

(27) 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

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reclassified to ordinary shares on the effective date of new shares issuance.

(28) Revenue recognition

Sales of goods

• A. Sales are recognised 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 recognised 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 recognised 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 recognised 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.

• (29) Government grants

Government grants are recognised 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 recognised in profit or loss on a systematic basis over the periods in which the Company recognises 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 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, 2023, the carrying amount of inventories was $1,316,650.

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6. Details of Significant Accounts

(1) Cash and cash equivalents

Cash: Cash on hand Checking accounts Demand deposits Cash equivalents: Time deposits Short-term notes and bills	December31,2023 76 $ 206 133,757 134,039 1,530,000 59,914 1,589,914 1,723,953 $	December31,2022 64 $ 106 522,141
		522,311
		1,330,000 -
		1,330,000
		1,852,311 $

• 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. The Company’s time deposits maturing in excess of three months amounting to $130,000 as of December 31, 2023 were classified as financial assets at amortized cost - current. There were no such events as of December 31, 2022.

• C. As of December 31, 2023 and 2022, the Company had no cash and cash equivalents pledged to others.

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

others. Financial assets at fair	value through profit or loss
	Items		December	31,2023		December	31,2022
Current items:
Financial assets mandatorily measured at fair
value through profit	or loss
Listed stocks			$	-		$	38,848
Beneficiary certificates				3,000			13,000
				3,000			51,848
Valuation adjustment		(		8)	(		1,595)
			$	2,992		$	50,253
Non-current items:
Financial assets mandatorily measured at fair
value through profit	or loss
Listed stocks-private	placement		$	36,000		$	-
Right of resell of convertible corporate bonds				3,349			3,349
				39,349			3,349
Valuation adjustment				87,701	(		3,349)
			$	127,050		$	-

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• A. The Company recognised net gain amounting to $120,995 and $60,687 (listed as ‘Other income’ and ‘Other gains and losses’) on financial assets at fair value through profit or loss for the years ended December 31, 2023 and 2022, respectively.

• B. In November 2023, the Company subscribed a total 5,000 thousand shares to Ensure Global Corp., Ltd through private placement, and the transfer of the private placement stock will be restricted within three years.

• C. As of December 31, 2023 and 2022, the Company had no financial assets at fair value through profit or loss pledged to others as collateral.

(3) Notes and accounts receivable, net

profit or loss pledged to others as collateral. Notes and accounts receivable, net
		December	31,2023		December	31,2022
Notes receivable		$	40,823		$	50,634
Accounts receivable		$	474,724		$	590,609
Less: Allowance for uncollectible accounts	(		5,220)	(		1,360)
		$	469,504		$	589,249

• 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 91~180 days past due Over 181 days past due	December	Accounts receivable 542,543 $ 23,167 16,836 10,472 1,476 594,494 $ 31, 2023	December	31, 2022
	Notes receivable 40,823 $ - - - - 40,823 $		Notes receivable 50,634 $ - - - - 50,634 $	Accounts receivable
				627,417 $ 15,930 2,116 - 771
				646,234 $

The above ageing analysis was based on past due date.

• B. As of December 31, 2023 and 2022, notes receivable and accounts receivable were all from contracts with customers. Also, as of January 1, 2022, the balance of receivables (including related parties) from contracts with customers amounted to $1,374,788.

• C. As of December 31, 2023 and 2022, the Company did not hold any collateral as security for accounts receivable.

• D. As at December 31, 2023 and 2022, 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, 2023 and 2022, the Company had no notes receivable and accounts receivable

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pledged to others.

(4) Inventories

pledged to others. nventories
Raw materials Supplies Work in progress Finished goods Raw materials Supplies Work in progress Finished goods	Allowance for inventory Cost valuation loss 320,200 $ 911) ($ 183,961 1,243) ( 326,598 2,313) ( 512,838 22,480) ( 1,343,597 $ 26,947) ($ December 31, 2023 December31,2022	Bookvalue 319,289 $ 182,718 324,285 490,358
		1,316,650 $
	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) ($	Bookvalue
		531,057 $ 192,570 384,734 604,774
		1,713,135 $

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

		For theyears ended	For theyears ended	December 31,
		2023		2022
Cost of goods sold	$	3,229,089	$	4,929,107
(Gain on reversal of)loss on decline	(	3,905)		14,906
in market value (Note)
Loss on physicial inventory		1,868		-
Income from sales of scraps	(	20,147)	(	27,000)
	$	3,206,905	$	4,917,013

(Note) The Company reversed a previous inventory write-down which was accounted for as reduction of cost of goods sold in 2023 because certain inventories which were previously provided with allowance for decline in value were subsequently sold or scrapped.

B. As of December 31, 2023 and 2022, the Company had no inventories pledged to others.

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

Items			December31,2023			December31,2022
Equity instruments
Listed stocks		$	549,202		$	272,201
Unlisted stocks			772			772
			549,974			272,973
Valuation adjustment	(		96,496)	(		30,122)
		$	453,478		$	242,851

• A. The Company has elected to classify equity investments that are considered to be steady dividend income as financial assets at fair value through other comprehensive income. The fair value of such investments amounted to $453,478 and $242,851 as of December 31, 2023 and 2022, respectively.

• B. In order to meet the needs of capital expenditure, the Company sold its financial assets at fair -

• value through other comprehensive income equity instrument at fair values of $86,392 and $100,773 as of December 31, 2023 and 2022, respectively, and accumulated gains on disposal of $73,130 and $84,868, respectively, which were reclassified from other equity interest to retained earnings.

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

Equity instruments at fair value through other comprehensive income Fair value change recognized in other comprehensive income (listed as ‘Other equity’) Cumulative gains reclassified to retained earnings due to derecognition Dividend income recognized in profit or loss (listed as ‘Other income’)		2023 2022 6,756 $ 33,460) ($ 73,130 $ 84,868 $ 2,336 $ 13,019 $ For theyears ended December 31,	2023 2022 6,756 $ 33,460) ($ 73,130 $ 84,868 $ 2,336 $ 13,019 $ For theyears ended December 31,
		2023
		6,756 $ 73,130 $ 2,336 $	33,460) ($ 84,868 $ 13,019 $

• D. As of December 31, 2023 and 2022, 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. As of December 31, 2023 and 2022, the Company had no financial assets at fair value through other comprehensive income pledged to others.

~29~

(6) Investments accounted for under equity method

A. Movements in investments accounted for under equity method are as follows:

		For theyears ended	For theyears ended	For theyears ended	December 31,	December 31,
		2023				2022
At January 1	$	3,175,750	$			3,047,566
Share of profit of subsidiaries,		276,269				328,529
associates and joint ventures accounted
for under equity method
Cash dividends from investments	(	168,384)	(			239,803)
accounted for under equity method
Adjustments of capital surplus for the		23,430				34,030
Company’s cash dividends received by
subsidiaries
Share of other comprehensive income of		31,292	(			46,529)
subsidiaries, associates and joint
ventures accounted for under equity
method
Exchange differences on translation of
foreign financial statements	(	28,816)				51,957
At December 31	$	3,309,541	$			3,175,750
The debit balance of investments accounted for using the		equity method are		listed		below:
	December31,2023				December31,2022
CHUN BANG PRECISION CO., LTD.	$	205,039		$		184,611
CHUN YU WORKS (USA) INC.		411,301				363,602
CHUN YU INVESTMENT CO., LTD.		140,080				101,198
CHUN YU BIO-TECH CORP.		108,888				127,117
SCHOLAR HOLDINGS LTD.		993,195				1,019,768
SUNNY CITY INTERNATIONAL LIMITED		251,936				253,160
PT MOON LION INDUSTRIES INDONESIA		726,961				641,959
CHUN ZU MACHINERY INDUSTRY CO., LTD.		472,141				484,335
	$	3,309,541		$		3,175,750

B. The debit balance of investments accounted for using the equity method are listed below:

• C. Details of the Company’s subsidiaries are provided in Note 4(3) of the Company’s 2023 consolidated financial statements.

• D. As of December 31, 2023 and 2022, the Company had no investments accounted for under equity method pledged to others.

~30~

(7) Property, plant and equipment

																	Equipment under	Equipment under	Equipment under
																		acceptance and
						Machinery and			Utilities		Transportation			Office		Other		construction in
		Land		Buildings			equipment		equipment			equipment		equipment		equipment			progress		Total
January 1, 2023
Cost	$	1,266,245	$	972,144	$		2,449,218	$	74,161	$		48,674	$	50,791	$	181,385	$		4,995	$	5,047,613
Accumulated depreciation		-	(	780,747)	(		2,139,719)	(	62,453)	(		42,222)	(	46,304)	(	157,491)			-	(	3,228,936)
	$	1,266,245	$	191,397	$		309,499	$	11,708	$		6,452	$	4,487	$	23,894	$		4,995	$	1,818,677
2023
At January 1	$	1,266,245	$	191,397	$		309,499	$	11,708	$		6,452	$	4,487	$	23,894	$		4,995	$	1,818,677
Additions		-		5,809			30,305		1,162			2,739		94		1,783			376		42,268
Transfers after acceptance		-		706			4,287		-			-		-		-	(		4,993)		-
Transfers from prepayments for		-		-			683		206			2,184		-		-			-		3,073
equipment
Depreciation charge		-	(	25,981)	(		65,246)	(	3,013)	(		3,753)	(	1,909)	(	7,361)			-	(	107,263)
Disposals - Cost		-	(	835)	(		14,135)		-	(		2,084)	(	18,068)	(	19,355)			-	(	54,477)
- Accumulated depreciation		-		835			14,135		-			1,787		18,068		19,006			-		53,831
At December 31	$	1,266,245	$	171,931	$		279,528	$	10,063	$		7,325	$	2,672	$	17,967	$		378	$	1,756,109
December 31, 2023
Cost	$	1,266,245	$	977,824	$		2,470,358	$	75,529	$		51,513	$	32,817	$	163,813	$		378	$	5,038,477
Accumulated depreciation		-	(	805,893)	(		2,190,830)	(	65,466)	(		44,188)	(	30,145)	(	145,846)			-	(	3,282,368)
	$	1,266,245	$	171,931	$		279,528	$	10,063	$		7,325	$	2,672	$	17,967	$		378	$	1,756,109

~31~

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

~32~

• A. The Company’s property, plant and equipment are for its own use as of December 31, 2023 and 2022.

• B. No interest expense was capitalised in property, plant and equipment for the years ended December 31, 2023 and 2022.

• C. Information about the property, plant and equipment that were pledged to others as collateral as of December 31, 2023 and 2022 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	December 31,2023 December 31,2022 Carryingamount Carryingamount 71 $ 285 $ For the years ended December 31,	December 31,2022 Carryingamount
		285 $
	2023 Depreciation charge 214 $	2022
		Depreciation charge
		455 $

• －

• C. For the years ended December 31, 2023 and 2022, the additions to right-of-use assets were $ and $143, respectively.

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

		For the years ended	For the years ended	December 31,
		2023		2022
Items affecting profit or loss
Interest expense on lease liabilities	$	2	$	6
Expense on leases of low-value assets		2,400		1,447
Losses from lease modification		-		32

• E. For the years ended December 31, 2023 and 2022, the Company’s total cash outflow for leases were $2,617 and $1,886, respectively.

• F. As of December 31, 2023 and 2022, the Company had no right-of-use assets pledged to others.

~33~

(9) Investment property, net

==> picture [499 x 490] intentionally omitted <==

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

2023 Land Buildings Total
At January 1
Cost $ 19,303 $ 24,411 $ 43,714
Accumulated depreciation - ( 21,914) ( 21,914)
Net book value $ 19,303 $ 2,497 $ 21,800
At January 1 $ 19,303 $ 2,497 $ 21,800
-
Depreciation charge ( 843) ( 843)
At December 31 $ 19,303 $ 1,654 $ 20,957
At December 31
Cost $ 19,303 $ 24,411 $ 43,714
Accumulated depreciation - ( 22,757) ( 22,757)
Net book value $ 19,303 $ 1,654 $ 20,957
2022 Land Buildings 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
----- End of picture text -----

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

property are shown below:
Rental income from investment property (shown as ‘Other income’) Direct operating expenses arising from the investment property that generated rental income during the year	For theyears ended December 31,
	2023 6,568 $ 843 $	2022
		7,105 $
		915 $

~34~

• B. The fair value of the investment property held by the Company was $123,592 and $163,137 as of December 31, 2023 and 2022, 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, 2023 and 2022, 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, 2023 and 2022 are provided in Note 8, ‘Pledged Assets’.

(10) Intangible assets

Intangible assets
		Computer software
		For theyears ended December 31,
		2023	2022
At January 1
Cost	$	6,471	$	7,656
Accumulated amortisation	(	4,414)	(	4,925)
	$	2,057	$	2,731
At January 1	$	2,057	$	2,731
Acquired separately		900		475
Amortisation charge	(	1,097)	(	1,149)
Write-offs - cost	(	3,340)	(	1,660)
- accumulated amortisation		3,340		1,660
At December 31	$	1,860	$	2,057
At December 31
Cost	$	4,031	$	6,471
Accumulated amortisation	(	2,171)	(	4,414)
	$	1,860	$	2,057

• A. No interest expense was capitalised for the years ended December 31, 2023 and 2022.

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

Operating costs General and administrative expenses Research and development expenses	For the years ended December 31,	For the years ended December 31,
	2023 25 $ 842 230 1,097 $	2022
		28 $ 824 297
		1,149 $

• C. As of December 31, 2023 and 2022, the Company had no intangible assets pledged to others.

~35~

(11) Short-term borrowings

==> picture [472 x 121] intentionally omitted <==

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

Type of borrowings December 31, 2023 Interest rate range Collateral
Bank borrowings
Unsecured borrowings $ 143,062 1.83%～6.79% None
Type of borrowings December 31, 2022 Interest rate range Collateral
Bank borrowings
Unsecured borrowings $ 180,225 2.48 % ～5.63 % None
----- End of picture text -----

Details of interest expense recognised in profit or loss for the years ended December 31, 2023 and 2022 are provided in Note 6(22), ‘Finance Costs’.

• (12) Bonds payable

2022 are provided in Note 6(22), ‘Finance Costs’. Bonds payable
December 31, 2023 Guaranteed ordinary bonds payable 3,000,000 $ Guaranteed convertible bonds 1,600,000 4,600,000 Less:Discount on bonds payable 21,442) ( 4,578,558 $	December 31, 2022 3,000,000 $ 1,600,000 4,600,000 36,395) ( 4,563,605 $	Collateral
		(Note) 〃

• (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

~36~

(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

~37~

Amendments to IAS 32 "Financial Instruments: Expression", the conversion right which has the nature of equity is separated from each liability component, and was recognised as "Capital reserve - share options" of $221,790. Another embedded repurchase option, in accordance with Amendments to IFRS 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 recognised in profit or loss for the years ended December 31, 2023 and 2022 are provided in Note 6 (22), Financial costs.

(13) 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 recognised in the balance sheet are as follows:

Present value of defined benefit obligation Fair value of plan assets Net defined benefit liability	December31,2023	December31,2022
	112,438) ($ 105,443 6,995) ($	161,837) ($ 134,532 27,305) ($

~38~

(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
2023				obligation		assets		benefitliability
Balance at January 1	($			161,837)	$	134,532	($		27,305)
Current service cost	(			851)		-	(		851)
Interest (expense) income	(			2,353)		2,032	(		321)
	(			165,041)		136,564	(		28,477)
Remeasurements:
Return on plan assets
(excluding amounts included in
interest income or expense)				-		682			682
Changes in financial assumptions	(			55)		-	(		55)
Experience adjustments				6,465		-			6,465
				6,410		682			7,092
Pension fund contribution				-		1,223			1,223
Paid pension				46,193	(	33,026)			13,167
Balance at December 31	($			112,438)	$	105,443	($		6,995)
			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 demographic 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)

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

~39~

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, 2023 and 2022 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	2023 2022 1.25% 1.50% 2.00% 2.25% For theyears ended December 31,

Future mortality rate was estimated based on the 6th Taiwan Standard Ordinary Experience Mortality Table for the years ended December 31, 2023 and 2022.

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

December 31, 2023 Effect on present value of defined benefit obligation December 31, 2022 Effect on present value of defined benefit obligation	Discount rate	Discount rate	Discount rate	Increase0.25% Decrease 0.25% 2,415 $ 2,347) ($ 3,339 $ 3,246) ($ Future salaryincrease rate
	Increase 0.25%	Decrease0.25%
	2,396) ($ 3,313) ($		2,477 $ 3,426 $

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 compared to the previous period.

• (e) Expected contributions to the defined benefit pension plan of the Company for the following year amount to $1,197.

• (f) As of December 31, 2023, the weighted average duration of the retirement plan is 10.2 years. The analysis of timing of the future pension payment was as follows:

~40~

Next	1 year	$	3,842
Next	2 ~ 5 years		33,132
Over	next 6 years		84,417
		$	121,391

• 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 were $10,789 and $11,103 for the years ended December 31, 2023 and 2022, respectively.

(14) 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,
	2023 302,163 - 302,163	2022
		287,774 14,389
		302,163

• 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. 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, 2023, 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)

~41~

For the year ended December 31, 2023

	Forthe yearendedDecember31,2023	23
Reason for reacquisition Acquisition of the parent company’s shares by subsidiaries Reason for reacquisition Acquisition of the parent company’s shares by subsidiaries	Number of Number of shares at shares at the beginning the end of the year Addition Decrease ofthe year 23,430 - - 23,420 Number of Number of shares at shares at the beginning the end ofthe year Addition Decrease of the year 22,314 1,116 - 23,430 Forthe yearendedDecember31,2022	Number of shares at the end ofthe year
		23,420

• (b) As of December 31, 2023 and 2022, the book value (cost) was both $267,195, and the fair value were $591,612 and $562,324, respectively. The shares of the Company held by the subsidiaries are recognised 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 amounted to $23,430 and $ , $34,030 and $ 11,157, for the years ended December 31, 2023 and 2022 respectively.

• (c) Reason for share reacquisition and the number of the Company’s treasury shares remained unchanged as of December 31, 2023 and 2022. Details are as follows:

	unchanged as of December 31, 2023 and 2022. Details	are as follows:
	Name of company Reason for holdingthe shares reacquisition Chun Yu Investment Co., Ltd. Acquisition of the parent company’s shares by subsidiaries Name of company Reason for holdingthe shares reacquisition Chun Yu Investment Co., Ltd. Acquisition of the parent company’s shares by subsidiaries	December 31,	Carrying amount 267,195 $ 2023 2022
		Number of shares (in thousands) 23,430 Number of shares (in thousands) 23,430 December 31,
			Carrying amount 267,195 $

~42~

(15) 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, 2023 Share options acquired or disposed Balance at the beginning of year 221,790 $ 26,901 $ 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 December31,2022 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 $	Treasury share transactions 229,232 $ 23,430 252,662 $ Treasury share transactions 195,202 $ - 34,030 229,232 $	Total
		477,923 $ 23,430
		501,353 $
		Total
		222,103 $ 221,790 34,030
		477,923 $

• B. Details of ‘Capital reserve - share options’ are provided in Note 6(14), ‘Share capital’.

(16) 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.

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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-1090150022, dated March 31, 2021, shall be reversed proportionately when the relevant assets are used, disposed of or reclassified subsequently.

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

• to $302,163 and $ , $438,885 and $143,887 for the years ended December 31, 2023 and 2022, respectively. It includes cash dividends of $302,163 ($1.0 (in dollars) per share) in the second half of 2022 earnings, 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 stock dividends of $143,887 ($0.5 (in dollars) per share) in the second half of 2021 earnings. On March 7, 2024, the Board of Directors proposed for the distribution of cash dividends from 2023 earnings amounting to $274,968 ($0.91 (in dollars) per share).

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(17) Other equity

For the year ended December 31, 2023,

				Unrealised
		Currency		gains (losses)
		translation		on valuation		Total
At January 1	($	163,091)	($	167,985)	($	331,076)
Revaluation - currency translation	(	28,490)		-	(	28,490)
Revaluation - unrealised gains
on valuation		-		38,056		38,056
Valuation adjustment transferred out to
retained earnings		-	(	73,130)	(	73,130)
At December 31	($	191,581)	($	203,059)	($	394,640)

		For theyear	For theyear	ended December	31,	2022,
				Unrealised
		Currency		gains (losses)
		translation		on valuation		Total
At January 1	($	214,721)	$	6,765	($	207,956)
Revaluation - currency translation		51,630		-		51,630
Revaluation - unrealised 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)

(18) Operating revenue

Operating revenue
Revenue from contracts with customers	For theyears ended December31,
	2023 3,381,977 $	2022
		5,478,958 $

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:

product lines:
Major product lines Screws and nuts Wire rods Billet Others	For theyears ended December 31,
	2023 1,813,617 $ 1,520,066 29,902 18,392 3,381,977 $	2022
		2,427,807 $ 2,341,071 686,930 23,150
		5,478,958 $

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B. Contract liabilities ：

As of December 31, 2023 and 2022, the Company has recognised revenue-related contract liabilities of $16,183 and $15,318, respectively. As of January 1, 2023, the contract liabilities amounted to $10,786. Revenue recognised for the years ended December 31, 2023 and 2022, which was included in the contract liabilities at the beginning of the year, amounted to $12,688 and $8,354, respectively.

(19) Interest income

and $8,354, respectively. Interest income
		For the years ended		December 31,
		2023		2022
Interest income from bank deposits	$	24,791	$	4,969
Other interest		-		5
	$	24,791	$	4,974

(20) Other income

Other income
Rent income Dividend income Other income	For theyears ended December 31,
	2023 8,596 $ 3,008 18,133 29,737 $	2022
		9,199 $ 15,645 16,875
		41,719 $

(21) Other gains and losses

		For theyears ended December 31,	For theyears ended December 31,	For theyears ended December 31,
		2023		2022
Gains on financial assets at fair value	$	120,323	$		58,061
through profit or loss
Net foreign exchange (losses) gain	(	883)			20,836
Gain (losses) on disposal of property, plant		338	(		2,735)
and equipment
Losses from lease modification		-	(		32)
Miscellaneous disbursements	(	1,839)	(		1,290)
	$	117,939		$	74,840

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(22) Finance costs

Finance costs
		For theyears ended		December 31,
		2023		2022
Interest expense:
Ordinary bonds payable	$	47,709	$	48,560
Convertible bonds payable		29,339		22,708
Bank borrowings		12,786		10,750
Interest on lease liabilities		2		6
	$	89,836	$	82,024

(23) Expenses by nature

Employee benefit expense Depreciation Amortisation Employee benefit expense Depreciation Amortisation	For theyear ended December 31,2023	For theyear ended December 31,2023	For theyear ended December 31,2023
	Operatingcosts Operatingexpenses Total 296,852 $ 101,784 $ 398,636 $ 99,781 7,696 107,477 25 1,072 1,097 396,658 $ 110,552 $ 507,210 $ For theyear ended December 31,2022		Total
			398,636 $ 107,477 1,097
			507,210 $
	Operatingcosts 351,755 $ 103,255 28 455,038 $	Operatingexpenses 128,407 $ 8,909 1,121 138,437 $	Total
			480,162 $ 112,164 1,149
			593,475 $

(24) Employee benefit expense

Employee benefit expense
Wages and salaries Labour and health insurance fees Pension costs Directors’ remuneration Other personnel expenses	For theyear ended December 31,2023
	Operatingcosts 254,170 $ 29,478 8,312 - 4,892 296,852 $	Operatingexpenses 75,746 $ 6,593 3,649 14,250 1,546 101,784 $	Total
			329,916 $ 36,071 11,961 14,250 6,438
			398,636 $

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		For the	year ended December	year ended December	31,	2022
		Operatingcosts	Operatingexpenses			Total
Wages and salaries	$	303,785	$	93,225	$	397,010
Labour and health insurance fees		31,851		9,094		40,945
Pension costs		8,996		3,877		12,873
Directors’ remuneration		-		20,470		20,470
Other personnel expenses		7,123		1,741		8,864
	$	351,755	$	128,407	$	480,162

• A. As at December 31, 2023 and 2022, the Company had 566 and 604 employees, including 9 and 11 non-employee directors, respectively. Average employee benefit expense and average employee salaries were $690 and $777, $592 and $671 for the years ended December 31, 2023 and 2022, respectively. Average employee salaries for the year ended December 31, 2023 was a decrease of 11.77%.

• 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, 2023 and 2022, employees’ compensation was accrued at $6,095 and $13,100, respectively; while directors’ remuneration was accrued at $6,085 and $13,100, respectively. The aforementioned amounts were recognised 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 $13,100, which were the same with the amounts recognised in the financial statements for the year ended December 31, 2022. The employees’ compensation and directors’ remuneration for 2023 as resolved by the Board of Directors on March 7, 2024 were $6,095 and 6,085, respectively, and the employees’ compensation will be distributed in the

~48~

form of cash.

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.

(25) Income tax

• A. Components of income tax expense:

• (a) Components of income tax expense:

lved at the meeting of Board of Directors will be tem” at the website of the Taiwan Stock Exchange. e tax mponents of income tax expense: Components of income tax expense:	posted in the “Market Observation Post	posted in the “Market Observation Post
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	For theyears ended December 31,
	2023 27,047 $ 10,791 37,838 629 38,467 $	2022
		21,366 $ 12,822
		34,188
		55,635
		89,823 $

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

follows:
		For theyears ended December		31,
		2023	2022
Remeasurement of defined benefit obligation	$	1,418	$	4,506
Exchange differences on translation of foreign	(	326)		327
financial statements
	$	1,092	$	4,833

B. Reconciliation between income tax expense and accounting profit:

		For theyears ended	For theyears ended	December	31,
		2023		2022
Tax calculated based on profit before tax and	$	58,418	$	125,465
statutory tax rate
Effects from items disallowed by tax regulation	(	37,820)	(		27,678)
Separate taxation		14,215			14,982
Prior year income tax under estimation		10,791			12,822
Effect from tax loss	(	7,137)	(		35,768)
Income tax expense	$	38,467	$		89,823

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

~49~

For the year ended December 31, 2023

								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			6,170	(		781)			-			5,389
market value
Other deferred revenue and			10,634	(		1,894)			-			8,740
unrealised expenses
Currency translation differences			4,450			273			-			4,723
Remeasurements of defined			8,622			-	(		1,418)			7,204
benefit plan
Tax losses			87,517			7,137			-			94,654
		$	118,605		$	4,735	($		1,418)		$	121,922
Deferred tax liabilities
Temporary differences:
Pensions	($		3,158)	($		2,644)		$	-	($		5,802)
Unrealized foreign exchange gain	(		455)			455			-			-
Reserve for land value increment	(		293,140)			-			-	(		293,140)
tax
Currency translation differences	(		1,377)			-			326	(		1,051)
Foreign investment income	(		21,675)	(		5,161)			-	(		26,836)
Others	(		6,996)			1,986			-	(		5,010)
	($		326,801)	($		5,364)		$	326	($		331,839)
	($		208,196)	($		629)	($		1,092)	($		209,917)

~50~

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)

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

follows:
		December31,2023
Year incurred 2017 2019	Amount filed /assessed 580,599 $ 516,191 1,096,790 $	Unused amount - $ 473,269 473,269 $	Unrecognised deferred taxassets - $ - - $	Expiry year
				2027 2029

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

• E. The Company did not recognise deferred tax liabilities related to taxable temporary difference of investment on subsidiaries. The unrecognised deferred tax liabilities were $1,435,034 and $1,181,299 as of December 31, 2023 and 2022, respectively.

• F. The Company’s income tax returns through 2021 have been assessed and approved by the Tax Authority. The Company did not have any administrative remedy as of March 7, 2024.

• (26) 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	Weighted average number of ordinary Earnings Amount shares outstanding per share aftertax (sharesinthousands) (indollars) 253,625 $ 278,733 0.91 $ 253,625 $ 278,733 - 365 11,317 42,667 264,942 $ 321,765 0.82 $ Forthe yearendedDecember31,2023
		0.91 $
		0.82 $

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For the year ended December 31, 2022

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	Weighted average number of ordinary Earnings Amount shares outstanding per share aftertax (sharesinthousands) (indollars) 537,503 $ 278,733 1.93 $ 537,503 $ 278,733 - 649 8,474 22,093 545,977 $ 301,475 1.81 $

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

(27) Supplemental cash flow information

A. Investing activities with partial cash payments:

ember 31, 2021. pplemental cash flow information Investing activities with partial cash payments:
Purchase of property, plant and equipment Add: Opening balance of payable on equipment (listed as ‘Other payables’) Cash paid for acquisition of property, plant and equipment Less: Ending balance of payable on equipment (listed as ‘Other payables’)	2023 2022 42,268 $ 68,114 $ 5,310 12,142 11,657) ( 5,310) ( 35,921 $ 74,946 $ For theyears ended December 31,
		68,114 $ 12,142 5,310) (
		74,946 $

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

(a) Write-off of uncollectible amounts (b) Prepayments for equipment transferred to property, plant and equipment	For theyears ended December 31,	For theyears ended December 31,
	2023 - $ 3,073 $	2022
		933 $
		16,673 $

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(28) Changes in liabilities from financing activities

January 1, 2023 Changes in cash flow from financing activities Changes in unamortized discount December 31, 2023	Short-term borrowings 180,225 $ 37,163) ( - 143,062 $	Lease liability 269 $ 215) ( - 54 $	Bondspayable 4,563,605 $ - 14,953 4,578,558 $	Long-term borrowings (including current portion) - $ - - - $	Guarantee deposits received 457 $ - - 457 $	Liabilities from financingactivities -gross 4,744,556 $ 37,378) ( 14,953 4,722,131 $

Short-term borrowings January 1, 2022 932,549 $ Changes in cash flow from financing activities 752,324) ( Changes in unamortized discount - Changes in other non-cash items - December 31, 2022 180,225 $	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 $

~54~

7. Related Party Transactions

(1) Names of related parties and relationship

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

ted Party Transactions Names of related parties and relationship Names of related parties	Relationship withthe Company
Chun Bang Precision Co., Ltd.	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

ificant 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	2023 2022 443,870 $ 702,780 $ 81,163 147,854 525,033 $ 850,634 $ For theyears ended December 31,
		702,780 $ 147,854
		850,634 $

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

Purchases
Purchases of goods: Subsidiaries Other related parties	For theyears ended December 31,
	2023 72,778 $ 4,036 76,814 $	2022
		72,045 $ 2,437
		74,482 $

Goods are purchased from related parties based on the prices and terms that would be available ～ to third parties and the average payment terms are 1 2 months. However, both parties may

~55~

negotiate to extend payment terms according to the funds available.

C. Property transaction

Acquisition of assets:

	Acquisition of assets:	Acquisition of assets:	Acquisition of assets:
D. E. F.	There was no such transaction for the year ended December 31, 2022. Other expenses Other income Accounts receivable Objects 2023 2022 Subsidiaries Machinery and equipment, prepayments for equipment 2,949 $ 10,084 $ Other related party Machinery and equipment 459 500 3,408 $ 10,584 $ For the years ended December 31, 2023 2022 Other related parties 40,356 $ 53,592 $ Subsidiaries 10,468 6,345 50,824 $ 59,937 $ For theyears ended December 31, 2023 2022 Management service income Subsidiaries 9,178 $ 6,400 $ Rent income Subsidiaries 6,613 6,551 Other related parties 972 945 Other income Subsidiaries 6,793 7,911 Other related parties 469 2,074 24,025 $ 23,881 $ For theyears ended December 31, December 31,2023 December 31,2022 Other related parties 92,683 $ 37,724 $ Subsidiaries 27,087 17,901 119,770 $ 55,625 $
		2023 9,178 $ 6,613 972 6,793 469 24,025 $ December 31,2023 92,683 $ 27,087 119,770 $	2022
			6,400 $ 6,551 945 7,911 2,074
			23,881 $
			December 31,2022 37,724 $ 17,901 55,625 $

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G. Other receivables

H.Prepayments I.Accounts payable J.Other payables Subsidiaries Other related parties Subsidiaries Other related parties Subsidiaries Other related parties Subsidiaries Other related parties	December 31, 2023 17,028 $ 560 17,588 $ December 31, 2023 2,726 $ 335 3,061 $ December31,2023 11,315 $ 3,363 14,678 $ December 31, 2023 8,727 $ 5,672 14,399 $	December31,2022 12,069 $ -
		12,069 $
		December 31, 2022
		295 $ 335
		630 $
		December31,2022 16,098 $ - 16,098 $ December31,2022 1,307 $ 8,895 10,202 $

K. Endorsements and guarantees provided to related parties: Refer to Note 13 (1)B.

(3) Key management compensation

Wages and salaries and other short-term benefits	For the years ended December 31,	For the years ended December 31,
	2023 27,561 $	2022
		25,824 $

8. Pledged Assets

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

Assets	December	31,2023	December	31,2022	Purpose
Land (Note)	$	358,824	$	358,824	Collateral for long-term
					borrowings and bonds
					payable
Buildings and structures, net		58,822		63,474	Collateral for long-term
(Note)					borrowings and bonds
					payable
	$	417,646	$	422,298

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

9. Significant Contingent Liabilities and Unrecognised Contract Commitments

• (1) As of December 31, 2023 and 2022, the Company’s capital expenditures contracted for at the balance sheet date but not yet incurred were $12,847 and $8,126, respectively.

• (2) As of December 31, 2023 and 2022, the Company’s line of credit issued but not yet negotiated were $184,423 and $36,751, respectively.

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

• (4) 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. Subsequently, Li, Shi-Ren appealed to the Supreme Court. On June 8, 2023, 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.

10. Significant Disaster Loss

None.

11. Significant Events after the Balance Sheet Date

In February 2024, the Company participated in the capital increase of Argo Yachts Development Co., Ltd. at a price of $27(in dollars) per share. The Company subscribed 4,500 thousand shares, for a total subscription amount of $121,500.

12. Others

(1) Capital management

The Company’s objectives when managing capital are to safeguard the Company’s ability to

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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 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 recognised 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 recognised assets and liabilities. Foreign exchange risk arises when future commercial transactions or recognised 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

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exchange rate fluctuations is as follows:

==> picture [426 x 469] intentionally omitted <==

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

December 31, 2023
Foreign currency
amount
(Foreign currency: functional currency) (In thousands) Exchange rate Book value
Financial assets
Monetary items
USD:NTD $ 8,085 30.71 $ 248,250
EUR:NTD 834 33.98 28,339
Investments accounted for under
equity method
USD:NTD 54,053 30.71 1,659,697
IDR:NTD 367,208,441 0.00198 727,073
Financial liabilities
Monetary items
USD:NTD 2,600 30.71 79,833
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 under
equity method
USD:NTD 53,455 30.71 1,641,603
IDR:NTD 325,929,153 0.00198 645,340
Financial liabilities
Monetary items
USD:NTD 4,658 30.71 143,047
EUR:NTD 834 32.72 27,288
----- End of picture text -----

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 would have decreased/increased by $1,574 and $440 for the years ended December 31, 2023 and 2022, respectively.

The total exchange (loss) gain, including realised and unrealised, arising from significant foreign exchange variation on the monetary items held by the Company amounted to ($883) and $20,836 for the years ended December 31, 2023 and 2022, 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 would have increased/decreased by $1,300 and $502 for the years ended December 31, 2023 and 2022, 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 $4,535 and $2,429, 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 2023 and 2022, 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 would have decreased/increased by $1,144 and $1,442 for the years ended December 31, 2023 and 2022, 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:

Balance at January 1 Expected credit loss Balance at December 31 Balance at January 1 Expected credit gain Write-off of uncollectible amounts Balance at December 31	Notes Accounts receivable receivable Total - $ 1,360 $ 1,360 $ - 3,860 3,860 - $ 5,220 $ 5,220 $ For the year ended December 31, 2023 Notes Accounts receivable receivable Total - $ 2,840 $ 2,840 $ - 547) ( 547) ( - 933) ( 933) ( - $ 1,360 $ 1,360 $ Forthe yearendedDecember31,2022

• (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:

December31,2023 Non-derivative financial liabilities: Short-term borrowings Accounts payable (including related parties) Other payables Lease liability Bonds payable Guarantee deposits received December31,2022 Non-derivative financial liabilities: Short-term borrowings Accounts payable (including related parties) Other payables Lease liability Bonds payable Guarantee deposits received	Less than 1year 143,463 $ 126,353 170,086 55 1,950 457 Less than 1year 182,510 $ 130,733 215,875 217 1,950 457	Between 1 and 2year(s) - $ - - - 1,950 - Between 1 and 2year(s) - $ - - 55 1,950 -	Between 2 and5 years - $ - - - 4,605,850 - Between 2 and 5 years - $ - - - 5,850 -	More than 5 years - $ - - - - - More than 5 years
				- $ - - - 4,601,950 -

• 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 value of the Company’s investment in listed stocks and beneficiary certificates is

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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. The fair value of the Group’s investment in listed stocks-private placement (Liquidity discount is 24.82%) is included in Level 2.

• 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, shortterm 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, 2023 and 2022 are as follows:

==> picture [443 x 208] intentionally omitted <==

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

December 31, 2023 Level 1 Level 2 Level 3 Total
Assets:
Recurring fair value measurements
Financial assets at fair value
through profit or loss
- -
Equity securities $ $ 127,050 $ $ 127,050
Beneficiary certificates 2,992 - - 2,992
2,992 127,050 - 130,042
Financial assets at fair value
through other comprehensive
income
Equity securities 453,478 - - 453,478
$ 456,470 $ 127,050 $ - $ 583,520
----- End of picture text -----

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==> picture [443 x 210] intentionally omitted <==

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

December 31, 2022 Level 1 Level 2 Level 3 Total
Assets:
Recurring fair value measurements
Financial assets at fair value
through profit or loss
- -
Equity securities $ 39,074 $ $ $ 39,074
Beneficiary certificates 11,179 - - 11,179
50,253 - - 50,253
Financial assets at fair value
through other comprehensive
income
Equity securities 242,851 - - 242,851
$ 293,104 $ - $ - $ 293,104
----- 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, 2023 and 2022, there was no transfer between Level 1 and Level 2.

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

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13. Supplementary Disclosures

(According to the current regulatory requirements, the Company is only required to disclose the information for the year ended December 31, 2023)

(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) 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, 2023

(Expressed in thousands of New Taiwan dollars)

Item Description Cash: Cash on hand Checking accounts Demand deposits - NTD Demand deposits - Foreign USD 994 thousand, exchange rate: 30.71 currency EUR 413 thousand, exchange rate: 33.98 CNY 1 thousand, exchange rate:4.3355 Cash equivalents: Time deposits - NTD Short-term notes and bills - NTD	Amount
	76 $ 206 89,202 30,513 14,041 1
	134,039
	1,530,000 59,914
	1,589,914
	1,723,953 $

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CHUN YU WORKS & CO., LTD. STATEMENT OF FINANCIAL ASSETS MEASURED AT AMORTIZED COST - CURRENT DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

Item Description Time deposits which maturity of over three months Entie Commercial Bank 2023.12~2024.04, interest rate:1.45% O-Bank 2023.12~2024.04, interest rate:1.50%	Amount
	30,000 $ 100,000 130,000 $

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CHUN YU WORKS & CO., LTD. STATEMENT OF ACCOUNTS RECEIVABLE, NET DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

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

Client Name Description Amount
British Gypsum Accounts receivable $ 105,209
KYOEI PRECISION CO., LTD. " 34,803
E-SHENG STEEL CO., LTD. " 31,443
Chi Rei Co., Ltd. " 27,872
Others (individually not exceeding 5%) " 275,397
474,724
Less: Allowance for uncollectible accounts ( 5,220)
$ 469,504
----- End of picture text -----

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CHUN YU WORKS & CO., LTD. STATEMENT OF ACCOUNTS RECEIVABLE DUE FROM RELATED PARTIES, NET DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

Client Name Ofco Industrial Corp. Chun Yu Works (USA) Inc. Others (individually not exceeding 5%)	Description Amount Accounts receivable 92,683 $ " 25,666 " 1,421 119,770 $	Note
		－ － －

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CHUN YU WORKS & CO., LTD. STATEMENT OF INVENTORIES DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

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

Amount
Net Realisable
Item Cost Value
Raw materials $ 320,200 $ 327,535
Supplies 183,961 215,581
Work in progress 326,598 368,624
Finished goods 512,838 527,444
1,343,597 $ 1,439,184
Less: Allowance for inventory ( 26,947)
valuation loss $ 1,316,650
----- End of picture text -----

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CHUN YU WORKS & CO., LTD.

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

(Expressed in thousands of New Taiwan dollars)

Name of Financial Instrument	BeginningBalance	BeginningBalance	Addition	Addition	Decrease	Decrease	Valuation adjustment	Number of shares (In thousands) Fair Value 5,000 127,050 $ None EndingBalance Collateral	Note
	Number of shares (In thousands)	Fair Value	Number of shares (In thousands)	Amount	Number of shares (In thousands)	Amount	Amount	Number of shares (In thousands)
Listed stocks-private Ensure Global Co., Ltd.(Note)	-	- $	5,000	36,000 $	-	- $	91,050 $	5,000	－

(Note) Information relating to financial assets measured at fair value through profit or loss is provided in Note 6(2).

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CHUN YU WORKS & CO., LTD.

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

(Expressed in thousands of New Taiwan dollars)

shares (In thousands) Amount Listed stocks: Taiwan Styrene Monomer Corporation 11,678 258,939 $ China Ecotek Corporation 1,970 13,262 Gloria Material Technology Corporation - - Unlisted stocks: King Kong Iron Works, Ltd. 304 772 272,973 Valuation adjustment 30,122) ( 242,851 $ Name of Financial Assets BeginningBalance(Note)	Addition	Addition	Decrease	shares (In thousands) Amount 11,678 258,939 $ - - 5,526 290,263 304 772 549,974 96,496) ( 453,478 $ EndingBalance	Collateral	Note
	Nimber of shares (In thousands) - - 5,526 -	Amount - $ - 290,263 - 290,263 6,756 297,019 $	shares (In thousands) Amount - - $ 1,970) ( 13,262) ( - - - - 13,262) ( 73,130) ( 86,392) ($
					None None None None	－ － － －

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CHUN YU WORKS & CO., LTD. STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR UNDER EQUITY METHOD FOR THE YEAR ENDED DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

Name of Investees	Number of shares Number of shares (In thousands) Amount (In thousands) Amount 15,000 184,611 $ - 24,178 $ 3,800 363,602 - 48,472 74,888 101,198 - 38,882 10,000 127,117 - - 33,183 1,019,768 - - 1,000 253,160 - 28,702 14,370 641,959 - 176,239 28,822 484,335 - 34,824 3,175,750 $ 351,297 $ BeginningBalance Addition	Number of shares (In thousands) Amount - 3,750) ($ - 773) ( - - - 18,229) ( - 26,573) ( - 29,926) ( - 91,237) ( - 47,018) ( 217,506) ($ Decrease	Number of shares (In thousands) Shareholding EndingBalance	Number of shares (In thousands) Shareholding EndingBalance		Unitprice Total Amount $ 12.74 191,147 $ 108.38 411,850 9.77 731,692 10.89 108,888 30.00 995,470 252.39 252,386 50.60 727,073 17.65 508,576 3,927,082 $ Market Value or Net Assets Value	Unitprice Total Amount $ 12.74 191,147 $ 108.38 411,850 9.77 731,692 10.89 108,888 30.00 995,470 252.39 252,386 50.60 727,073 17.65 508,576 3,927,082 $ Market Value or Net Assets Value	Collateral	Footnote
				Shareholding	Amount
Chun Bang Precision Co., Ltd. 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 74,888 10,000 33,183 1,000 14,370 28,822	- - - - - - - -	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%	205,039 $ 411,301 140,080 108,888 993,195 251,936 726,961 472,141	$ 12.74 108.38 9.77 10.89 30.00 252.39 50.60 17.65		None None None None None None None None	－ － － － － － － －
					3,309,541 $		3,927,082 $

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CHUN YU WORKS & CO., LTD. STATEMENT OF CHANGES IN PROPERTY, PLANT AND EQUIPMENT - COST FOR THE YEAR ENDED DECEMBER 31, 2023

(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 PROPERTY, PLANT AND EQUIPMENT - ACCUMULATED DEPRECIATION

FOR THE YEAR ENDED DECEMBER 31, 2023

(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, 2023

(Expressed in thousands of New Taiwan dollars)

[Information relating to income tax is provided in Note 6(25).]

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CHUN YU WORKS & CO., LTD. STATEMENT OF SHORT-TERM BORROWINGS DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

Nature Description Unsecured borrowings HSBC Bank (Taiwan) Taipei Fubon Bank Hua Nan Bank Entie Commercial Bank Bank Sinopac O-Bank	Ending Balance 36,846 $ 38,617 21,153 18,812 15,352 12,282 143,062 $	Contract Period 2023.11.15～2024.01.24 2023.12.14～2024.02.01 2023.12.05～2024.01.05 2023.12.26～2024.01.26 2023.12.05～2024.01.04 2023.12.27～2024.02.07	Range of Interest Rate Note Note Note Note Note Note	Credit Line 210,000 $ 185,000 150,000 100,000 300,000 100,000	Collateral	Footnote
					None None Note Note Note Note	－ － － － － －

Note: Interest rate ranged from 1.83% to 6.79%.

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CHUN YU WORKS & CO., LTD. STATEMENT OF ACCOUNTS PAYABLE DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

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

Suppliers Name Description Amount Note
----- End of picture text -----

E-SHENG STEEL CO., LTD. Accounts payable Hong Yi Carton Ltd. " HEXICO ENTERPRISE CO., LTD. " CHINA STEEL CORPORATION " Yuan Sui Timber Co. " SHENG WOEN PLASTIC CO., LTD. " Others (each item not exceeding 5%) "	29,971 $ － 9,993 － 9,155 － 7,648 － 6,301 － 6,146 － 42,461 － 111,675 $

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CHUN YU WORKS & CO., LTD. STATEMENT OF OTHER PAYABLES DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

Item Wages and salaries payable Annual bonus payable Employees' compensation and directors' remuneration Processing expenses payable Payable on machinery and equipment Others (individually not exceeding 5%)	Description	Amount 31,445 $ 18,500 14,579 14,012 11,657 79,893 170,086 $	Note
			－ － － － － －

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CHUN YU WORKS & CO., LTD. STATEMENT OF BONDS PAYABLE DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

Items 1st Guarantee ordinary bonds payable in 2021 1st Guarantee convertible bonds payable in 2022 2nd Guarantee convertible bonds payable in 2022 3rd Guarantee convertible bonds payable in 2022	Guarantee bank	Issue date Date of interest repayment 2021.10.15 (Note) 2022.3.25 (Note) 2022.3.25 (Note) 2022.3.25 (Note)	Coupon rate		Amount	Amount		Repayment term	Collateral	Note
				Total issue amount	Repayment	Endingbalance	Book value
	(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 $	2,996,135 $ 692,334 494,533 395,556	(Note) (Note) (Note) (Note)	(Note) (Note) (Note) (Note)	- - - -
					- $		4,578,558 $

(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, 2023 (Expressed in thousands of New Taiwan dollars)

Information relating to income tax is provided in Note 6(25).

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CHUN YU WORKS & CO., LTD. STATEMENT OF OPERATING REVENUE FOR THE YEAR ENDED DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

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

Item Volume (ton) Amount Note
----- End of picture text -----

Item	Volume(ton)		Amount	Note
Taps	8,943	$	998,140	－
Annealing wires	27,512		960,056	－
Screws	11,360		518,658	－
Polished wires	17,687		472,920	－
Nuts	3,934		316,562	－
Black oxide coating	4,651		99,552	－
Steel billet	1,683		29,902	－
Processing fees revenue			17,698	－
Others			1,251	－
Total sales revenue			3,414,739
Less: Sales returns	378	(	11,994)	－
Sales discounts and allowances		(	20,768)	－
		$	3,381,977

~83~

CHUN YU WORKS & CO., LTD. STATEMENT OF OPERATING COSTS FOR THE YEAR ENDED DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

Item		Amount
Beginning raw materials	$	535,330
Add: Raw materials purchased		1,675,040
Less: Raw materials sold	(	30,036)
Ending raw materials	(	320,200)
Raw materials used during the year		1,860,134
Beginning supplies		193,720
Add: Supplies purchased		285,895
Less: Ending supplies	(	183,961)
Supplies used during the year		295,654
Direct labor		171,306
Manufacturing expense		611,349
Manufacturing cost		2,938,443
Beginning work in progress		390,862
Add: Transfers from finished goods		40,090
Ending work in progress	(	326,598)
Cost of finished goods		3,042,797
Beginning finished goods		624,075
Add: Finished goods purchased		85,109
Less: Transfers to work in progress	(	40,090)
Ending finished goods	(	512,838)
Production and sales cost		3,199,053
Add: Cost of raw materials sold		30,036
Cost of goods sold		3,229,089
Loss on physicial inventory		1,868
Gain on reversal of market value	(	3,905)
Income from sales of scraps	(	20,147)
Operating costs	$	3,206,905

~84~

CHUN YU WORKS & CO., LTD. STATEMENT OF MANUFACTURING OVERHEAD FOR THE YEAR ENDED DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

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

Item Description Amount Note
Utilities expense $ 110,152 －
Processing expense －
110,001
Depreciation charge －
99,781
Indirect labor －
91,176
Fuel expense －
61,932
Repairs and maintenance expense －
43,137
－
Others (each item not exceeding 5%) 95,170
$ 611,349
----- End of picture text -----

~85~

CHUN YU WORKS & CO., LTD. STATEMENT OF SELLING EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

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

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

Export expense Freight Wages and salaries Other expenses (individually not exceeding 5%)	25,939 $ － 23,958 － 21,754 － 15,437 － 87,088 $

~86~

CHUN YU WORKS & CO., LTD. STATEMENT OF GENERAL AND ADMINISTRATIVE EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

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

Item Description Amount Note
Wages and salaries $ 53,437 －
Donation expense －
20,356
Directors’ remuneration －
14,250
Advertisement expense －
9,820
Depreciation charge －
7,590
－
Other expenses (individually not exceeding 5%) 38,771
$ 144,224
----- End of picture text -----

~87~

CHUN YU WORKS & CO., LTD. STATEMENT OF OTHER GAINS AND LOSSES FOR THE YEAR ENDED DECEMBER 31, 2023 (Expressed in thousands of New Taiwan dollars)

Information relating to other gains and losses is provided in Note 6(21).

~88~

CHUN YU WORKS & CO., LTD. STATEMENT OF FINANCE COST FOR THE YEAR ENDED DECEMBER 31, 2023 (Expressed in thousands of New Taiwan dollars)

Information relating to finance costs is provided in Note 6(22).

~89~

CHUN YU WORKS & CO., LTD. SUMMARY STATEMENT OF CURRENT PERIOD EMPLOYEE BENEFITS, DEPRECIATION, AND AMORTISATION EXPENSES BY FUNCTION FOR THE YEAR ENDED DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

Information relating to expenses by nature is provided in Note 6(23). Information relating employee benefit expense is provided in Note 6(24).

~90~

Chun Yu Works & Co., Ltd. Provision of endorsements and guarantees to others For the year ended December 31, 2023

Expressed in thousands of NTD

Table 1

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, 2023	Outstanding endorsement/ guarantee amount at December 31, 2023	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 endorsements/ guarantees by subsidiary to parent company	Provision of endorsements/ guarantees to the party in Mainland China	Footnote
		Companyname	Relationship with the endorser/ guarantor （Note 1）
0	Chun Yu Works & Co., Ltd.	Chun Yu (Dongguan) Metal Products Co., Ltd.	2	2,566,642 $	648,500 $	$ 307,050	$ 112,723	$ -	7.18%	3,422,189 $	Y	N	Y	(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.

3. (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.

4. (Note 3) Foreign currencies are translated into New Taiwan dollars. Exchange rate of foreign currencies indicated as of report date were as follow: USD:NTD 1:30.7050, RMB:NTD 1:4.3355.

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, 2023

Securities held by Table 2	Marketable securities	Relationship with the securities issuer	General ledger account (Note 1)		As of Dece	mber 31,2023	Expressed i	Footnote n 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 - Taiwan Styrene Monomer Corporation Stocks - Gloria Material Technology Corporation Stocks - King Kong Iron Works, Ltd. Stocks - Ensure Global Co., Ltd. Beneficiary certificates - PGIM USD High Yield Bond Fund-USD 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 － － － － － The Company － Subsidiary －	3 3 3 2 1 1 3 (Note 2) 3 (Note 3) 3	11,678 5,526 304 5,000 300 10 6,440 23,430 6,618 9 1,500	182,761 $ 269,945 772 127,050 2,992 185 100,786 591,612 103,572 161 23,475	2.21 1.04 0.55 3.16 - - 1.22 7.75 1.25 0.01 0.28	182,761 $ 269,945 772 127,050 2,992 185 100,786 591,612 103,572 161 23,475	- - - - - - - - - - -

(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 profit or loss - non-current.

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

4. (Note 2) Information relating to the Company’s stocks is provided in Note 6(14) 'Share capital'.

5. (Note 3) The Company’s stocks held by Chun Yu Bio-tech Corp., shown as ‘Financial assets at fair value through other comprehensive profit or loss- non-current’, were changed to be shown as ‘Investments accounted for using the equity method’ when the group prepared the consolidated financial statements and fully eliminated.

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, 2023

Table 3

Expressed in thousands of NTD

Purchaser/seller	Counterparty	Relationship with the counterparty			Transaction		tran Differences in compared	sactions transaction terms to third party	Notes/accountsr	eceivable (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 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	(Sales) (Sales) Purchases (Sales) Purchases	443,870) ($ ( 246,460) 175,792 ( 175,792) 246,460	( 13%) ( 19%) 18% ( 23%) 38%	1 month 3 months 3 months 3 months 3 months	- - - - -	3 ~ 5 months (Note 1) (Note 2) (Note 1) (Note 2)	$ 92,683 - - - -	15% - - - -	- - - - -

• (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 1:30.7050, RMB:NTD 1:4.3355), and the transactions amounts are translated into New Taiwan dollars at the average exchange rate for the year ended December 31, 2023 (USD:NTD 1:31.1773, RMB:NTD 1:4.4272).

Table 3 Page 1

Chun Yu Works & Co., Ltd.

Table 4

Expressed in thousands of NTD

Significant inter-company transactions during the reporting period For the year ended December 31, 2023

Transaction

Number (Note2)	Companyname	Counterparty	Relationship (Note 3)	General ledgeraccount	Amount	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 Zu Machinery Industry Co., Ltd. Chun Yu Works & Co., Ltd. Chun Yu (Dongguan) Metal Products Co., Ltd. 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 3 2 3 3 3 3 3 3 3 3	Sales Accounts receivable Provision of endorsements and guarantees Sales Accounts receivable Sales Sales Sales Sales Other receivables Sales Accounts receivable Other receivables Sales Other receivables Sales	77,713 $ 25,666 307,050 75,709 12,534 13,595 11,311 12,747 15,995 25,966 44,011 12,176 18,594 246,460 34,624 175,702	4 months - - 3 months - 3 months 3 months 3 months 3 months - (Note 5) - - 3 months - 3 months	1% - 3% 1% - - - - - - 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:

• Number 0 presents the Company.

• The consolidated subsidiaries are in order from number 1.

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

• The Company to the consolidated subsidiary.

• The consolidated subsidiary to the Company.

• 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 30.7050; RMB 1 : NTD 4.3355)

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, 2023 (USD 1 : NTD 31.1773; RMB 1 : NTD 4.4272).

Table 4 Page 1

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

For the year ended December 31, 2023

Table 5

Investor	Investee	Location	Main business activities	Initial invest	ment amount	Shareshel	d as atDecember3	1,2023	Net profit (loss) of the investee for the year ended December31,2023	Investment income (loss) recognised by the Company for the year ended December31,2023	Footnote
				Balance as at December 31, 2023	Balance as at December 31, 2022	Numberofshares	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	205,039 $ 411,301 140,080 108,888 993,195 251,936 726,961 472,141 519,318	5,640 $ 47,137 53,940 14,334) ( 9,523) ( 28,702 245,288 74,265 53,665	10,332 $ 48,472 1,222 14,455) ( 9,067) ( 28,702 176,239 34,824 -	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 1:30.7050, RMB:NTD 1:4.3355), and the transactions amounts are translated into New Taiwan dollars at the average exchange rate for the year ended December 31, 2023 (USD:NTD 1:31.1773, RMB:NTD 1:4.4272).

Table 5 Page 1

Chun Yu Works & Co., Ltd. Information on investments in Mainland China For the year ended December 31, 2023

Table 6

Investee in Mainland China Table 6	Main business activities	Paid-in capital	Investment method	Accumulated amount of remittance from Taiwan to Mainland China as of January 1, 2023	ended Dece Amount r to Taiwan Amount remit to Main	mber 31,2023 emitted back for the year ted from Taiwan land China/	Accumulated amount of remittance from Taiwan to Mainland China as of December 31, 2023	Net income of investee for the year ended December 31,2023	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the year ended December 31,2023	Book value of investments in Mainland China as of December 31, 2023	Accumulated amount of investment income remitted back to Taiwan as of December 31, 2023 Expresse	Footnote d 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.	Manufacture and trade of screws and nuts Trade of screws and nuts Trade of screws and nuts Manufacture and trade of machinery	$ 1,979,889 (Note 1) 30,705 8,169 260,993 (Note 2)	(Note 3) (Note 4) (Note 5) (Note 6)	1,479,766 $ 30,705 - 61,410	- $ - - -	- $ - - -	1,479,766 $ 30,705 - 61,410	9,404) ($ 28,762 86 51,700	100% 100% 100% 47.82%	9,404) ($ 25,762 86 24,723	1,022,515 $ 250,195 3,818) ( 244,749	- $ 79,587 (Note 7) - 499,652 (Note 8)	(Note 9) (Note 9) (Note 9) (Note 10)

Companyname	Accumulated amount of remittance from Taiwan to Mainland China as of December 31, 2023	Investment amount approved by the Investment Commission of the Ministry of Economic Affairs(MOEA)	Ceiling on investments in Mainland China imposed by the Investment Commission of MOEA(Note 10)
Chun Yu Works & Co., Ltd. Chun Zu Machinery Industry Co., Ltd.	$ 1,735,232 61,420	$ 1,735,232 199,583	$ 3,047,452 638,246

• (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$2,592 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$34,029 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, 2023 are translated into New Taiwan dollars at the exchange rate (USD 1 : NTD 30.7050; RMB 1 : NTD 4.3355) 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, 2023 are translated into New Taiwan dollars at the average exchange rate for the year ended December 31, 2023 (USD 1 : NTD 31.1773; RMB 1 : NTD 4.4272).

Table 6 Page 1

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

December 31, 2023

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