CSG - Annual Report 2023 | FinancialReports.eu

Stock Code:1463

CHYANG SHENG DYEING & FINSHING CO., LTD. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

With Independent Auditors’ Report For the Years Ended December 31, 2023 and 2022

Address: No. 126, Dagong Rd., Dayuan Dist, Taoyuan City Telephone: (03)386-7661

The independent auditors’ report and the accompanying consolidated financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors’ report and consolidated financial statements, the Chinese version shall prevail.

Contents
1. Cover Page
2. Table of Contents
3. Representation Letter
4. Independent Auditors’ Report
5. Consolidated Balance Sheets
6. Consolidated Statements of Comprehensive Income
7. Consolidated Statements of Changes in Equity
8. Consolidated Statements of Cash Flows
9. Notes to the Consolidated Financial Statements
(1)
Company history
(2)
Approval date and procedures of the consolidated financial statements
(3)
New standards, amendments and interpretations adopted
(4)
Summary of material accounting policies
(5)
Significant accounting assumptions and judgments, and major sources
of estimation uncertainty
(6)
Explanation of significant accounts
(7)
Related-party transactions
(8)
Pledged assets
(9)
Significant contingent liabilities and unrecognized commitments
(10) Losses due to major disasters
(11) Subsequent events
(12) Other
(13) Other disclosures
(a) Information on significant transactions
(b) Information on investees
(c) Information on investment in mainland China
(d) Major shareholders
(14) Segment information Page

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Contents 1. Cover Page 2. Table of Contents 3. Representation Letter 4. Independent Auditors’ Report 5. Consolidated Balance Sheets 6. Consolidated Statements of Comprehensive Income 7. Consolidated Statements of Changes in Equity 8. Consolidated Statements of Cash Flows 9. Notes to the Consolidated Financial Statements (1) Company history (2) Approval date and procedures of the consolidated financial statements (3) New standards, amendments and interpretations adopted (4) Summary of material accounting policies (5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty (6) Explanation of significant accounts (7) Related-party transactions (8) Pledged assets (9) Significant contingent liabilities and unrecognized commitments (10) Losses due to major disasters (11) Subsequent events (12) Other (13) Other disclosures (a) Information on significant transactions (b) Information on investees (c) Information on investment in mainland China (d) Major shareholders (14) Segment information	Page
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Representation Letter

The entities that are required to be included in the combined financial statements of Chyang Sheng Dyeing & Finishing Co., LTD. as of and for the year ended December 31, 2023 under the Criteria Governing the Preparation of Affiliation Reports, Consolidated Business Reports, and Consolidated Financial Statements of Affiliated Enterprises are the same as those included in the consolidated financial statements prepared in conformity with International Financial Reporting Standards No. 10, "Consolidated Financial Statements." endorsed by the Financial Supervisory Commission of the Republic of China. In addition, the information required to be disclosed in the combined financial statements is included in the consolidated financial statements. Consequently, Chyang Sheng Dyeing & Finishing Co., LTD. and Subsidiaries do not prepare a separate set of combined financial statements.

Company name: Chyang Sheng Dyeing & Finishing Co., LTD. Chairman: REN FA CHEN Date: March 12, 2024

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KPMG

台北市110615信義路5段7號68樓(台北101大樓) 電話 Tel + 886 2 8101 6666 68F., TAIPEI 101 TOWER, No. 7, Sec. 5, 傳真 Fax + 886 2 8101 6667 Xinyi Road, Taipei City 110615, Taiwan (R.O.C.) 網址 Web kpmg.com/tw

Independent Auditors’ Report

To the Board of Directors of Chyang Sheng Dyeing & Finishing Co., Ltd.:

Opinion

We have audited the consolidated financial statements of Chyang Sheng Dyeing & Finishing Co., Ltd. and its subsidiaries (“the Group”), which comprise the consolidated balance sheet as of December 31, 2023 and 2022, the consolidated statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of material accounting policies.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as of December 31, 2023 and 2022, and its consolidated financial performance and its consolidated 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 and with the International Financial Reporting Standards (“ IFRSs” ), International Accounting Standards (“ IASs” ), Interpretations developed by the International Financial Reporting Interpretations Committee (“IFRIC”) or the former Standing Interpretations Committee (“SIC”) endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with The Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis of 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 consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.

Dyeing and finishing service revenue

Refer to Note 4(n) “Revenue recognition” to the consolidated financial statements.

KPMG, a Taiwan partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.

4-1

Description of the key audit matter:

The Group engaged in dyeing and finishing processing business, the transaction model of such businesses is that the customers provide the raw fabric, and the Group performs the dyeing and finishing processing of the raw fabric. After analyzing the transaction terms of this business, it is to satisfy the performance obligation and transfer the control of labor to the customer over time. The Group calculates the completion ratio and recognizes the sales revenue based on the progress of the manufacturing work orders. Considering the importance of revenue recognition to the consolidated financial reporting and the impact of revenue recognition to meet performance obligations over time, therefore, the accountant listed it as the key audit matter.

Our principal audit procedures included: understanding of revenue recognition policies adopted by the Group, and comparing them with sales terms to assess the appropriateness of those policies; observing the design of the internal control system of sales revenue on site, and testing the effectiveness of its implementation on a sample basis; sample testing of individual revenue transactions, verification to customer orders, proof of shipment, etc.; selecting samples of sales transactions for the period before and after the end of the year, to review the customer orders, sales terms, inventory completion and shipment records and other related information of these transactions. In addition, the reasonableness of the calculation of the percentage of completion is verified on a sample basis by obtaining the work-in-progress list at the end of the period.

Other Matter

Chyang Sheng Dyeing & Finishing Co., Ltd. has prepared its parent-company-only financial statements as of and for the years ended December 31, 2023 and 2022, on which we have issued an unmodified opinion.

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

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

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

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

4-2

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements

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

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

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

4-3

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

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

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

The engagement partners on the audit resulting in this independent auditors’ report are Yu, Chi-Lung and Yu, Sheng-Ho.

KPMG

Taipei, Taiwan (Republic of China) March 12, 2024

Notes to Readers

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

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES

Consolidated Balance Sheets

December 31, 2023 and 2022

(Expressed in thousands of New Taiwan Dollars)

Assets Current assets: 1100 Cash and cash equivalents (note 6(a)) 1110 Current financial assets at fair value through profit or loss (note 6(b)) 1140 Current contract assets (notes 6(r)) 1170 Notes and accounts receivable, net (including related parties) (note 6(d), (r) and 7) 130X Inventories (note 6(e)) 1476 Other financial assets (note 7 and 8) 1479 Other current assets Non-current assets: 1510 Non-current financial assets at fair value through profit or loss (note 6(b)) 1517 Non-current financial assets at fair value through other comprehensive income (note 6(c)) 1551 Investments accounted for using equity method (note 6(f)) 1600 Property, plant and equipment (notes 6(h) and 8) 1755 Right-of-use assets (note 6(i)) 1760 Investment property, net (note 6(j) and 8) 1840 Deferred income tax assets (note 6(o)) 1995 Other non-current assets (note 8 and 9) Total assets	December 31, 2023 Amount % $ 223,705 8 501,091 17 13,901 - 62,444 2 571,496 19 133,490 5 18,848 1 1,524,975 52 8,634 - 162,078 6 456,182 16 463,566 16 4,526 - 253,777 9 4,987 - 61,132 1 1,414,882 48 $ 2,939,857 100	December 31, 2022 Amount % 253,973 9 512,795 19 11,271 - 84,600 3 431,047 15 147,163 5 12,401 - 1,453,250 51 7,557 - 141,677 5 441,293 16 460,491 17 453 - 254,963 9 5,063 - 60,346 2 1,371,843 49 2,825,093 100 December 31, 2023 Liabilities and Equity Amount % Current liabilities: 2130 Current contract liabilities (note 6(e) and (r)) $ 293,534 10 2171 Notes and accounts payable 56,773 2 2280 Current lease liabilities (note 6(l)) 1,545 - 2305 Other financial liabilities 61,465 2 2399 Other current liabilities 13,121 - 426,438 14 Non-Current liabilities: 2540 Long-term borrowings (note 6(k)) - - 2570 Deferred income tax liabilities (note 6(o)) 105,630 4 2580 Non-current lease liabilities (note 6(l)) 2,987 - 2670 Other non-current liabilities 26,594 1 135,211 5 Total liabilities 561,649 19 Equity attributable to owners of parent (notes 6(p)): 3110 Ordinary shares 1,732,684 59 3200 Capital surplus 277,476 9 Retained earnings: 3310 Legal reserve 199,926 7 3320 Special reserve 56,835 2 3350 Unappropriated retained earnings 109,228 4 365,989 13 Other equity: 3411 Exchange differences on translation of foreign financial statements (28,950) (1) 3420 Unrealized gains or losses from financial assets at fair value through other comprehensive income 34,857 1 5,907 - 3500 Treasury shares (108,791) (4) 36XX Non-controlling interests (note 6(g)) 104,943 4 Total equity 2,378,208 81 Total liabilities and equity $ 2,939,857 100	December 31, 2023	December 31, 2023		December 31, 2022 Amount % 246,218 9 56,214 2 418 - 48,922 2 24,517 1 376,289 14 2,000 - 99,349 3 41 - 25,845 1 127,235 4 503,524 18 1,732,684 61 273,926 10 192,540 7 56,835 2 77,751 3 327,126 12 (22,752) (1) 18,773 1 (3,979) - (108,791) (4) 100,603 3 2,321,569 82 2,825,093 100
			Amount	%

See accompanying notes to financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES

Consolidated 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)

4000 Net operating revenues (notes 6(r) and 7) 5000 Operating costs (notes 6(e), (n) and 12) Gross profit from operations Operating expenses (notes 6(d), (l), (n), (s) and 12): 6100 Selling expenses 6200 Administrative expenses 6300 Research and development expenses 6450 Impairment loss (reversal of impairment loss) Net operating income (loss) Non-operating income and expenses: 7010 Other income (notes 6(m), (t) and 7) 7020 Other gains and losses (note 6(u)) 7060 Share of profit of associates accounted for using equity method (note 6(f)) 7100 Interest income (note 6(t)) 7510 Interest expense (note 6(l)) 7900 Profit before income tax 7950 Less: income tax expenses (note 6(o)) Profit 8300 Other comprehensive income (loss): 8310 Items that may not be reclassified subsequently to profit or loss: 8311 Gains on remeasurements of defined benefit plans (note 6(n)) 8316 Unrealized gains (losses) from investments in equity instruments measured at fair value through other comprehensive income Items that may not be reclassified subsequently to profit or loss 8360 Items that may be reclassified subsequently to profit or loss: 8361 Exchange differences on translation 8300 Other comprehensive income (after tax) Comprehensive income Profit attributable to: Owners of parent Non-controlling interests Comprehensive income (loss) attributable to: Owners of parent Non-controlling interests Basic earnings per share (NT dollars) (note 6(q)) Diluted earnings per share (NT dollars) (note 6(q))	2023 Amount % $ 347,508 100 331,750 95 15,758 5 10,408 3 51,993 15 9,083 3 (800) - 70,684 21 (54,926) (16) 80,375 23 58,092 17 39,831 11 2,857 1 (5,348) (2) 175,807 50 120,881 34 13,579 4 107,302 30 891 - 20,401 6 21,292 6 (6,198) (2) 15,094 4 $ 122,396 34 $ 107,279 30 23 - $ 107,302 30 $ 118,056 33 4,340 1 $ 122,396 34 $ 0.65 $ 0.65	2022 Amount % 495,932 100 419,379 85 76,553 15 11,908 2 50,025 10 9,314 2 740 - 71,987 14 4,566 1 73,854 15 (22,730) (5) 33,215 7 1,858 - (3,859) (1) 82,338 16 86,904 17 18,025 4 68,879 13 5,178 1 (242) - 4,936 1 33,082 7 38,018 8 106,897 21 68,684 13 195 - 68,879 13 106,702 21 195 - 106,897 21 0.42 0.42

See accompanying notes to financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES

Consolidated Statements of Changes in Equity

For the years ended December 31, 2023 and 2022 (Expressed in thousands of New Taiwan Dollars)

		Equity attributable to owne	Equity attributable to owne	rs of parent
Ordinary shares $ 1,732,684 - - - - - - - 1,732,684 - - - - - - $ 1,732,684	Capital surplus 270,375	Retained earnings		Other		Total equity attributable to owners of parent
				Exchange differences on translation of foreign financial statements
		Legal reserve	Special reserve 56,835 - - - - - - - 56,835 - - - - - - 56,835
		184,567			(108,791) - - - - - - - (108,791) - - - - - - (108,791)	2,180,020
	- -	- -				68,684 38,018
	-	-				106,702
	- - - 3,551	7,973 - - -
	273,926	192,540
	- -	- -
	-	-
	- - 3,550	7,386 - -
	277,476	199,926

See accompanying notes to financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES

Consolidated 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): Depreciation expense Expected credit (gain) loss Interest expense Interest revenue Dividend income Share of profit of investments accounted for using equity method Loss (gain) from disposal of property, plant and equipment (Gain) loss on disposal of investment properties Impairment (gain) loss on financial assets Impairment loss Total adjustments to reconcile profit (loss) Changes in operating assets and liabilities: Financial assets at fair value through profit or loss, mandatorily measured at fair value Contract assets Notes and accounts receivable (including related parties) Inventories Other financial assets and current assets Defined benefit assets Total changes in operating assets Contract liabilities Notes and accounts payable Other financial liabilities and current liabilities Total changes in operating assets and liabilities Total adjustments Cash inflow generated from operations Interest received Dividends received Interest paid Income taxes paid Net cash flows from operating activities Cash flows from investing activities: Dividends received from investments accounted for using equity method Acquisition of investments accounted for using equity method Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment (Increase) decrease in refundable deposits Decrease (increase) in other non-current assets Net cash flows used in investing activities Cash flows from financing activities: (Repayments of) proceed from long-term debt Increase in guarantee deposits received Dividends paid from subsidiary to non-controlling shares Payment of lease liabilities Cash dividends paid Net cash flows used in financing activities Net (decrease) increase in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period	2023 $ 120,881 44,133 (800) 5,348 (2,857) (17,810) (39,831) 1,028 (33,050) (39,608) 12,915 (70,532) 83,285 (2,630) 22,956 (140,440) 2,420 (1,597) (36,006) 41,981 559 (7,567) (1,033) (71,565) 49,316 2,857 17,810 (21) (14,671) 55,291 10,629 (4,800) (25,940) 399 (80) 1,782 (18,010) (2,000) 749 - (541) (65,757) (67,549) (30,268) 253,973 $ 223,705	2022 86,904 42,540 740 3,859 (1,858) (22,803) (33,215) (95) 17,565 5,388 - 12,121 123,552 3,471 970 (129,417) (1,473) (1,459) (4,356) 45,733 (7,857) (796) 32,724 44,845 131,749 1,858 22,803 (10) (14,988) 141,412 10,317 - (63,369) 95 9,655 (1,884) (45,186) 2,000 675 (1,791) (758) (65,756) (65,630) 30,596 223,377 253,973

See accompanying notes to financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the years ended December 31, 2023 and 2022

(Expressed in thousands of New Taiwan Dollars, Unless Otherwise Specified)

(1) Company history

Chyang Sheng Dyeing & Finshing Co., Ltd. (“The Company”) was incorporated in the Republic of China on October 19, 1983, registered at No. 126, Dagong Rd., Dayuan Dist, Taoyuan City. The consolidated financial statements comprise the Company and subsidiaries (together referred to as the “Group”). The major business activities of the Group are processing, printing, bleaching, dyeing and finishing and trading of various fiber products.

The Company’ s common shares were listed on the Taiwan Stock Exchange (TWSE) on December 5, 1996.

(2) Approval date and procedures of the consolidated financial statements:

These consolidated financial statements were authorized for issue by the Board of Directors on March 12, 2024.

(3) New standards, amendments and interpretations adopted:

(a) The impact of the International Financial Reporting Standards (“IFRSs”) endorsed by the Financial Supervisory Commission, R.O.C. which have already been adopted.

The Group has initially adopted the following new amendments, which do not have a significant impact on its consolidated financial statements, from January 1, 2023:

●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”

The Group has initially adopted the following new amendment, which do not have a significant impact on its consolidated financial statements, from May 23, 2023:

●Amendments to IAS 12 “International Tax Reform—Pillar Two Model Rules”
(b) The impact of IFRS issued by the FSC but not yet effective

The Group assesses that the adoption of the following new amendments, effective for annual period beginning on January 1, 2024, would not have a significant impact on its consolidated financial statements:

●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”
●Amendments to IFRS 16 “Lease Liability in a Sale and Leaseback”

(Continued)

CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The Group does not expect the following new and amended standards, which have yet to be endorsed by the FSC, to have a significant impact on its consolidated financial statements:

●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” and amendments to IFRS 17 “ Insurance Contracts”
●Amendments to IAS21 “Lack of Exchangeability”

(4) Summary of material accounting policies

The material accounting policies presented in the consolidated financial statements are summarized below. Expect for those specifically indicated, the following accounting policies were applied consistently throughout the periods presented in the consolidated financial statements.

(a) Statement of compliance

These consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers (hereinafter, referred to as “the Regulations” ) and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations endorsed and issued into effect by the Financial Supervisory Commission, R.O.C..

(b) Basis of preparation
(i) Basis of measurement

Except for the following significant accounts, the consolidated financial statements have been prepared on a historical cost basis:

1) Financial instruments at fair value through profit or loss are measured at fair value
2) Financial assets at fair value through other comprehensive income are measured at fair value;
3) The defined benefit liabilities (assets) are measured at fair value of the plan assets less the present value of the defined benefit obligation.
(ii) Functional and presentation currency

The functional currency of each Group is determined based on the primary economic environment in which the entity operates. The consolidated financial statements are presented in New Taiwan Dollars (NTD), which is the Company’ s functional currency. All financial information presented in NTD has been rounded to the nearest thousand.

(Continued)

CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(c) Basis of consolidation

(i) Principles of preparation of the consolidated financial statements

The consolidated financial statements comprise the Company and subsidiaries. Subsidiaries are entities controlled by the Group. The Group ‘controls’ an entity when it is exposed to, 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.

The financial statements of subsidiaries are included in the consolidated financial statements from the date on which control commences until the date on which control ceases. Intragroup balances and transactions, and any unrealized income and expenses arising from Intragroup transactions are eliminated in preparing the consolidated financial statements. The Group attributes the profit or loss and each component of other comprehensive income to the owners of the parent and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance.

The Group prepares consolidated financial statements using uniform accounting policies for like transactions and other events in similar circumstances.

Changes in the Group’s ownership interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions. Any difference between the amount by which the noncontrolling interests are adjusted and the fair value of the consideration paid or received will be recognized directly in equity, and the Group will attribute it to the owners of the parent.

(ii) List of subsidiaries in the consolidated financial statements

Name of
investor
Name of subsidiary
Principal activity
The Company Hong Sheng Investment Co., Ltd.
(Hong Sheng Investment)
General investing
〞
Progiant Construction &
Development Corporation
(Progiant Construction)
Entrust construction
companies to build the
rental and sales business of
national residences and
commercial buildings
〞
Worthy Textile Industry Co., Ltd.
(Worthy Textile)
General investing
Worthy
Textile
Sea Some International Development
Co., Ltd. (Sea Some International)
International trade Shareholding
December 31,
2023
December 31,
2022
Note
%
-
%
100.00
Note 1
%
83.68
%
83.68
%
100.00
%
100.00
%
100.00
%
100.00
Note 1

Note 1 ： Hong Sheng Investment merged with Worthy Textile on December 1, 2023, with Worthy Textile being the sole existing company, acquiring the relevant investees of Hong Sheng Investment, based on the resolution approved during the Company's board meeting held on Novemeber 9, 2023.

(iii) Subsidiaries excluded from the consolidated financial statements: None.

(Continued)

CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(d) Foreign currencies

(i) Foreign currency transactions

Transactions in foreign currencies are translated into the respective functional currencies of Group entities at the exchange rates at the dates of the transactions. At the end of each subsequent reporting period, monetary items denominated in foreign currencies are translated into the functional currencies using the exchange rate at that date. Non-monetary items denominated in foreign currencies that are measured at fair value are translated into the functional currencies using the exchange rate at the date that the fair value was determined. Non-monetary items denominated in a foreign currency that are measured based on historical cost are translated using the exchange rate at the date of the transaction.

(ii) Foreign operations

The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated into the presentation currency at the exchange rates at the reporting date. The income and expenses of foreign operations are translated into the presentation currency at the average exchange rate. Exchange differences are recognized in other comprehensive income.

When a foreign operation is disposed of such that control, significant influence, or joint control is lost, the cumulative amount in the translation reserve related to that foreign operation is reclassified to profit or loss as part of the gain or loss on disposal. When the Group disposes of only part of its interest in a subsidiary that includes a foreign operation while retaining control, the relevant proportion of the cumulative amount is reattributed to noncontrolling interests. When the Group disposes of only part of its investment in an associate or joint venture that includes a foreign operation while retaining significant influence or joint control, the relevant proportion of the cumulative amount is reclassified to profit or loss.

(e) Classification of current and non-current assets and liabilities

An asset is classified as current under one of the following criteria, and all other assets are classified as non-current.

(i) It is expected to be realized, or intended to be sold or consumed, in the normal operating cycle;
(ii) It is held primarily for the purpose of trading;
(iii) It is expected to be realized within twelve months after the reporting period; or
(iv) The asset is cash or a cash equivalent unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

(Continued)

CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

A liability is classified as current under one of the following criteria, and all other liabilities are classified as noncurrent.

An entity shall classify a liability as current when:

(i) It is expected to be settled in the normal operating cycle;
(ii) It is held primarily for the purpose of trading;
(iii) It is due to be settled within twelve months after the reporting period; or
(iv) The Group does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting period. Terms of a liability that could, at the option of the counterparty, result in its settlement by issuing equity instruments do not affect its classification.

In addition, the business cycle of constructing business, engaged in the Group, is longer than one year. The relevant assets and liabilities of construction business are defined as non-current or noncurrent based on the business cycle.

(f) Cash and cash equivalents

Cash comprises cash on hand and demand deposits. Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value. Time deposits which meet the above definition and are held for the purpose of meeting short-term cash commitments rather than for investment or other purposes should be recognized as cash equivalents.

(g) Financial instruments

Accounts receivable and debt securities issued are initially recognized when they are originated. All other financial assets and financial liabilities are initially recognized when the Group becomes a party to the contractual provisions of the instrument. A financial asset (unless it is a accounts receivable without a significant financing component) or financial liability is initially measured at fair value plus, for an item not at fair value through profit or loss (FVTPL), transaction costs that are directly attributable to its acquisition or issue. A accounts receivable without a significant financing component is initially measured at the transaction price.

(i) Financial assets

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

On initial recognition, a financial asset is classified as measured at: amortized cost; Fair value through other comprehensive income (FVOCI) – debt investment; FVOCI – equity investment; or FVTPL. Financial assets are not reclassified subsequent to their initial recognition unless the Group changes its business model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model.

(Continued)

CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

1) Financial assets measured at amortized cost

A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as at FVTPL:

‧ it is held within a business model whose objective is to hold assets to collect contractual cash flows; and
‧ its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

These assets are subsequently measured at amortized cost, which is the amount at which the financial asset is measured at initial recognition, plus/minus, the cumulative amortization using the effective interest method, adjusted for any loss allowance. Interest income, foreign exchange gains and losses, as well as impairment, are recognized in profit or loss. Any gain or loss on derecognition is recognized in profit or loss.

2) Fair value through other comprehensive income (FVOCI)

On initial recognition of an equity investment that is not held for trading, the Group may irrevocably elect to present subsequent changes in the investment’s fair value in other comprehensive income. This election is made on an instrument-by-instrument basis.

Equity investments at FVOCI are subsequently measured at fair value. Dividends are recognized as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognized in other comprehensive income and are never reclassified to profit or loss.

Dividend income is recognized in profit or loss on the date on which the Group’s right to receive payment is established.

3) Fair value through profit or loss (FVTPL)

All financial assets not classified as amortized cost or FVOCI described as above are measured at FVTPL, including derivative financial assets. On initial recognition, the Group may irrevocably designate a financial asset, which meets the requirements to be measured at amortized cost or at FVOCI, as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognized in profit or loss.

4) Impairment of financial assets

The Group recognizes loss allowances for expected credit losses (ECL) on financial assets measured at amortized cost (including cash and cash equivalents, amortized costs, notes and accouts receivable, other receivables, guarantee deposit paid and other financial assets) and contract assets.

(Continued)

CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

12-month ECLs are the portion of ECLs that result from default events that are possible within the 12 month after the reporting date (or a shorter period if the expected life of the instrument is less than 12 months).

The maximum period considered when estimating ECLs is the maximum contractual period over which the Group is exposed to credit risk.

ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e the difference between the cash flows due to the Group in accordance with the contract and the cash flows that the Group expects to receive). ECLs are discounted at the effective interest rate of the financial asset.

At each reporting date, the Group assesses whether financial assets carried at amortized cost and debt securities at FVOCI are credit-impaired. A financial asset is ‘ creditimpaired’ when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred. Evidence that a financial assets is credit-impaired includes the following observable data ：

‧ significant financial difficulty of the borrower or issuer ；
‧ a breach of contract such as a default or being more than 180 days past due ；
‧ the lender of the borrower, for economic or contractual reasons relating to the borrower's financial difficulty, having granted to the borrower a concession that the lender would not otherwise consider ；
‧ it is probable that the borrower will enter bankruptcy or other financial reorganization ； or
‧ the disappearance of an active market for a security because of financial difficulties.

Loss allowances for financial assets measured at amortized cost are deducted from the gross carrying amount of the assets.

The gross carrying amount of a financial asset is written off when the Group has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof. The Group individually makes an assessment with respect to the timing and amount of write-off based on whether there is a reasonable expectation of recovery. The Group expects no significant recovery from the amount written off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with the Group’s procedures for recovery of amounts due.

5) Derecognition of financial assets

The Group derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Group neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset.

(Continued)

CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The Group enters into transactions whereby it transfers assets recognized in its statement of balance sheet, but retains either all or substantially all of the risks and rewards of the transferred assets. In these cases, the transferred assets are not derecognized.

(ii) Financial liabilities and equity instruments

1) Classification of debt or equity

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

2) Equity instrument

An equity instrument is any contract that evidences residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued are recognized as the amount of consideration received, less the direct cost of issuing.

3) Treasury shares

When shares recognized as equity are repurchased, the amount of the consideration paid, which includes directly attributable costs, is recognized as a deduction from equity. Repurchased shares are classified as treasury shares. When treasury shares are sold or reissued subsequently, the amount received is recognized as an increase in equity, and the resulting surplus or deficit on the transaction is recognized in capital surplus or retained earnings (if the capital suplus is not sufficient to be written down).

4) Financial liabilities

Financial liabilities are classified as measured at FVTPL. A financial liability is classified as at FVTPL if it is classified as held-for-trading, it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognized in profit or loss.

Other financial liabilities are subsequently measured at amortized cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognized in profit or loss. Any gain or loss on derecognition is also recognized in profit or loss.

5) Derecognition of financial liabilities

The Group derecognizes a financial liability when its contractual obligations are discharged, cancelled, or expired. The Group also derecognizes a financial liability when its terms are modified and the cash flows of the modified liability are substantially different, in which case a new financial liability based on the modified terms is recognized at fair value.

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

(Continued)

CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

6) Offsetting of financial assets and liabilities

Financial assets and financial liabilities are offset and the net amount presented in the statement of balance sheet when, and only when, the Group currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realize the asset and settle the liability simultaneously.

(h) Inventories

(i) Manufacturing

Inventories are measured at the lower of cost and net realizable value. The cost of inventories is based on weighted average method, and includes expenditure incurred in acquiring the inventories, production or conversion costs, and other costs incurred in bringing them to their present location and condition. In the case of manufactured inventories and work in progress, cost includes an appropriate share of production overheads based on normal operating capacity.

Net realizable value is the estimated selling price in the ordinary course of business, less, the estimated costs of completion and selling expenses.

(ii) Construction and development business

Inventories are measured at the lower of cost and net realizable value. The cost of inventories includes capitalisation of interest and other costs incurred in bringing them to their present location and condition.

Net realizable value is the estimated selling price in the ordinary course of business, less, the estimated costs of completion and selling expenses. The measurement of net realizable value is as follows:

1) Construction sites: The net realizable value is calculated on the basis of the estimated current market conditions judged by the management.
2) Construction-in-progress: The net realizable value is calculated on the basis of the expected selling price (based on the current market conditions) less cost of construction completion and selling costs.
3) Buildings and land held for sale: The NRV is the estimated selling price (with reference to the management authority’ s estimation based on prevailing market conditions) less estimated costs to be incurred in selling the properties and selling expenses.

(Continued)

CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(i) Investment in associates

Associates are those entities in which the Group has significant influence, but not control or joint control, over their financial and operating policies.

Investments in associates are accounted for using the equity method and are recognized initially at cost. The cost of the investment includes transaction costs. The carrying amount of the investment in associates includes goodwill arising from the acquisition less any accumulated impairment losses.

The consolidated financial statements include the Group’ s share of the profit or loss and other comprehensive income of those associates, after adjustments to align their accounting policies with those of the Group, from the date on which significant influence commences until the date on which significant influence ceases.

Gains and losses resulting from transactions between the Group and an associate are recognized only to the extent of unrelated Group’s interests in the associate.

When the Group’s share of losses of an associate equals or exceeds its interests in an associate, it discontinues recognizing its share of further losses. After the recognized interest is reduced to zero, additional losses are provided for, and a liability is recognized, only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associate.

When the Group subscribes to additional shares in an associate at a percentage different from its existing ownership percentage, the resulting carrying amount of the investment will differ from the amount of the Group’s proportionate interest in the net assets of the associate. The Group records such a difference as an adjustment to investments, with the corresponding amount charged or credited to capital surplus. The aforesaid adjustment should first be adjusted under capital surplus. If the capital surplus resulting from changes in ownership interest is not sufficient, the remaining difference is debited to retained earnings. If the Group’s ownership interest is reduced due to the additional subscription to the shares of the associate by other investors, the proportionate amount of the gains or losses previously recognized in other comprehensive income in relation to that associate will be reclassified to profit or loss on the same basis as would be required if the associate had directly disposed of the related assets or liabilities.

(j) Investment property

Investment property is property held either to earn rental income or for capital appreciation or for both, but not for sale in the ordinary course of business, use in the production or supply of goods or services, or for administrative purposes. Investment property is measured at cost on initial recognition, and subsequently at cost, less accumulated depreciation and accumulated impairment losses. Depreciation expense is calculated based on the depreciation method, useful life, and residual value which are the same as those adopted for property, plant and equipment.

Any gain or loss on disposal of an investment property (calculated as the difference between the net proceeds from disposal and the carrying amount) is recognized in profit or loss.

(Continued)

CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Rental income from investment property is recognized as other revenue on a straight-line basis over the term of the lease. Lease incentives granted are recognized as an integral part of the total rental income, over the term of the lease.

(k) Property, plant and equipment
(i) Recognition and measurement

Items of property, plant and equipment are measured at cost, which includes capitalized borrowing costs, less accumulated depreciation and any accumulated impairment losses.

If significant parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.

Any gain or loss on disposal of an item of property, plant and equipment is recognized in profit or loss.

(ii) Subsequent expenditure

Subsequent expenditure is capitalized only if it is probable that the future economic benefits associated with the expenditure will flow to the Group.

(iii) Depreciation

Depreciation is calculated on the cost of an asset less its residual value and is recognized in profit or loss on a straight-line basis over the estimated useful lives of each component of an item of property, plant and equipment.

Land is not depreciated.

The estimated useful lives of property, plant and equipment for current and comparative periods are as follows:

1) Buildings and construction: 2~25 years
2) Machinery and equipment: 2~10 years
3) Office and other equipment: 2~10 years

Depreciation methods, useful lives, and residual values are reviewed at each reporting date and adjusted if appropriate.

(iv) Reclassification to investment property

A property is reclassified to investment property at its carrying amount when the use of the property changes from owner occupied to investment property.

(l) Leases

At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

(Continued)

CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(i) As a leasee

The Group recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be reliably determined, the Group’s incremental borrowing rate. Generally, the Group uses its incremental borrowing rate as the discount rate.

Lease payments included in the measurement of the lease liability comprise the following:

－ fixed payments, including in-substance fixed payments;
－ variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;
－
－
amounts expected to be payable under a residual value guarantee; and
payments for purchase or termination options that are reasonably certain to be exercised.

The lease liability is measured at amortized cost using the effective interest method. It is remeasured when:

－
there is a change in future lease payments arising from the change in an index or rate; or
－ there is a change in the Group’s estimate of the amount expected to be payable under a residual value guarantee; or
－ there is a change in the lease term resulting from a change of its assessment on whether it will exercise an option to purchase the underlying asset, or
－ there is a change of its assessment on whether it will exercise a extension or termination option; or
－
there is any lease modifications

When the lease liability is remeasured, other than lease modifications, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or in profit and loss if the carrying amount of the right-of-use asset has been reduced to zero.

(Continued)

CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

When the lease liability is remeasured to reflect the partial or full termination of the lease for lease modifications that decrease the scope of the lease, the Group accounts for the remeasurement of the lease liability by decreasing the carrying amount of the right-of-use asset to reflect the partial or full termination of the lease, and recognize in profit or loss any gain or loss relating to the partial or full termination of the lease.

The Group presents right-of-use assets that do not meet the definition of investment and lease liabilities as a separate line item respectively in the statement of financial position.

The Group has elected not to recognize right-of-use assets and lease liabilities for short-term leases. The Group recognizes the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

(ii) As a leasor

When the Group acts as a lessor, it determines at lease commencement whether each lease is a finance lease or an operating lease. To classify each lease, the Group makes an overall assessment of whether the lease transfers to the lessee substantially all of the risks and rewards of ownership incidental to ownership of the underlying asset. If this is the case, then the lease is a finance lease; if not, then the lease is an operating lease. As part of this assessment, the Group considers certain indicators such as whether the lease is for the major part of the economic life of the asset.

When the Group is an intermediate lessor, it accounts for its interests in the head lease and the sub-lease separately. It assesses the lease classification of a sub-lease with reference to the right-of-use asset arising from the head lease, not with reference to the underlying asset. If a head lease is a short-term lease to which the Group applies the exemption described above, then it classifies the sub-lease as an operating lease.

If an arrangement contains lease and non-lease components, the Group applies IFRS15 to allocate the consideration in the contract.

(m) Impairment – non-derivative financial assets

At each reporting date, the Group reviews the carrying amounts of its non-financial assets (other than inventories, and deferred tax assets) to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated.

For impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or cash-generating units （ CGUs ） . Goodwill arising from a business combination is allocated to CGUs or groups of CGUs that are expected to benefit from the synergies of the combination.

The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. Value in use is based on the estimated future cash flows, discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU.

An impairment loss is recognized if the carrying amount of an asset or CGU exceeds its recoverable amount.

(Continued)

CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Impairment losses are recognized in profit or loss. They are allocated first to reduce the carrying amount of any goodwill allocated to the CGU, and then to reduce the carrying amounts of the other assets in the CGU on a pro rata basis.

(n) Revenue recognition

(i) Revenue from contracts with customers

Revenue is measured based on the consideration to which the Group expects to be entitled in exchange for transferring goods or services to a customer. The Group recognizes revenue when it satisfies a performance obligation by transferring control of a good or a service to a customer. The accounting policies for the Group’s main types of revenue are explained below.

1) Sale of goods–real estate

The Group develops and sells residential properties, and revenue is recognized when control over the properties has been transferred to the customer. The properties have generally no alternative use for the Group due to contractual restrictions. However, an enforceable right to the amounts performed to date becomes available to the Group, after the legal title to the properties is transferred to the customer. Therefore, revenue is recognized at a point in time when the legal title to the properties is transferred to the customer.

The revenue is measured at the transaction price agreed under the contract. For sales of existing homes, in most cases, in most cases, the consideration is due when legal title to a property has been transferred. While deferred shall not exceed twelve months. The transaction price is therefore not adjusted to reflect the effects of significant financing components. For pre-selling properties, the consideration is usually received in installments during the period from the signing of the contract to the transfer of properties to the customer. If the contract contains a significant financing component, the transaction price will be adjusted for the effects of the time value of money during the period, using the specific borrowing rate of the construction project. Receipt of a prepayment from a customer is recognized as a contract liability. Interest expense and contract liability are recognized when adjusting the effects of the time value of money. Accumulated amount of contract liabilities is recognized as the revenue when control over the property has been transferred to the customer.

2)

Service revenue

The Group provides OEM service of fabric dyeing and finishing to services customers, and the related services are gradually transferred to the control of customers in the course of contract performance. Therefore, the Group's service revenue is recognized based on the degree of completion of contract performance obligations on the reporting date. Fixed-price contracts are recognized as revenue based on the proportion of the actual OEM processes provided to all processes as of the reporting date. If circumstances change, the estimates of revenues, costs and degree of completion will be revised, and the resulting increases or decreases will be reflected in profit or loss in the period in which the management is informed of the change in circumstances.

(Continued)

CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

3) Financing components

The Group does not expect to have any contracts when the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. As a consequence, the group does not adjust any of the transaction prices for the time value of money.

4) Contract costs

The Group entrust advertisers for selling real estate, The Group recognizes as an asset the incremental costs of obtaining a contract with a customer if the Group expects to recover those costs, and amortized on a systematic basis consist with when the control of over the property has been transferred to the customer. The incremental costs of obtaining a contract are those costs that the Group incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained.

Costs to obtain a contract that would have been incurred regardless of whether the contract was obtained shall be recognized as an expense when incurred, unless those costs are explicitly chargeable to the customer regardless of whether the contract is obtained.

(o) Employee benefits

(i) Defined contribution plans

Obligations for contributions to defined contribution plans are expensed as the related service is provided.

(ii) Defined benefit plans

When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognized immediately in profit or loss. The Group recognizes gains and losses on the settlement of a defined benefit plan when the settlement occurs.

The Group’s net obligation in respect of defined benefit plans is calculated separately for each the plan by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets.The calculation of defined benefit obligations is performed annually by a qualified actuary using the projected unit credit method. When the calculation results in a potential asset for the Group, the recognized asset is limited to the present value of economic benefits available in the form of any future refunds from the plan or reductions in future contributions to the plan. To calculate the present value of economic benefits, consideration is given to any applicable minimum funding requirements.

(Continued)

CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognized immediately in other comprehensive income, and accumulated in retained earnings within equity.

The Group determines the net interest expense (income) on the net defined benefit liability (asset) for the period by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the then-net defined benefit liability (asset). Net interest expense and other expenses related to defined benefit plans are recognized in profit or loss.

(iii) Short-term employee benefits

Short-term employee benefits are expensed as the related service is provided. A liability is recognized for the amount expected to be paid if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

(p) Income taxes

Income taxes comprise current taxes and deferred taxes. Except for expenses related to business combinations or recognized directly in equity or other comprehensive income, all current and deferred taxes are recognized in profit or loss.

Current taxes comprise the expected tax payables or receivables on the taxable profits (losses) for the year and any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax payables or receivables are the best estimate of the tax amount expected to be paid or received that reflects uncertainty related to income taxes, if any. It is measured using tax rates enacted or substantively enacted at the reporting date.

Deferred taxes arise due to temporary differences between the carrying amounts of assets and liabilities at the reporting date and their respective tax bases. Deferred taxes are recognized except for the following:

(i) temporary differences on the initial recognition of assets and liabilities in a transaction that is not a business combination and at the time of the transaction (i) affects neither accounting nortaxable profits (losses) and (ii) does not give rise to equal taxable and deductible temporary differences;
(ii) temporary differences related to investments in subsidiaries, associates and joint arrangements to the extent that the Group is able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future; and

(iii) taxable temporary differences arising on the initial recognition of goodwill.

Deferred tax assets are recognized for the carry forward of unused tax losses, unused tax credits, and deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefits will be realized.

(Continued)

CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Deferred taxes are measured at tax rates that are expected to be applied to temporary differences when they reserve, using tax rates enacted or substantively enacted at the reporting date.

Deferred tax assets and liabilities are offset if the following criteria are met:

(i) the Group has a legally enforceable right to set off current tax assets against current tax liabilities; and
(ii) the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority on either:
1) the same taxable entity; or
2) different taxable entities which intend to settle current tax assets and liabilities on a net basis, or to realize the assets and liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.

(q) Earnings per share

The Group discloses the Company’s basic and diluted earnings per share attributable to ordinary shareholders of the Company. Basic earnings per share are calculated as the profit attributable to ordinary shareholders of the Company divided by the weighted-average number of ordinary shares outstanding. Diluted earnings per share are calculated as the profit attributable to ordinary shareholders of the Company divided by the weighted-average number of ordinary shares outstanding after adjustment for the effects of all potentially dilutive ordinary shares, including employee compensation.

(r) Operating segments

An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses (including revenues and expenses relating to transactions with other components of the Group). Operating results of the operating segment are regularly reviewed by the Group’s chief operating decision maker to make decisions about resources to be allocated to the segment and to assess its performance. Each operating segment consists of standalone financial information.

(5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty

In preparation of these consolidated financial statements, management has made judgments, estimates, and assumptions that affect the application of the accounting policies and the reported amount of assets, liabilities, income, and expenses. Actual results may differ from these estimates.

The management continues to monitor the accounting estimates and assumptions. The management recognizes any changes in accounting estimates during the period and the impact of those changes in accounting estimates in the next period.

(Continued)

CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Information about judgments made in applying accounting policies that have the most significant effects on the amounts recognized in the consolidated financial statements is as follows:

(a) Judgment of whether the Group has substantive control over its investees

The Group holds 33.61% of the outstanding voting shares of Treasure Star and Chyang Sheng Vietnam. Although the remaining company’ s shares are not concentrated within specific shareholders, the Group still cannot obtain more than half of the total number of company’ s directors, and it also cannot obtain more than half of the voting rights at a shareholders’ meeting. Therefore, it is determined that the Group has significant influence on its investees.

Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment to the carrying amounts of assets and liabilities within the next financial year is as follows.

(b) Revenue recognition

Contract revenue are recognized by reference to the stage of completion of each contract. The stage of completion of a contract is measured based on the proportion of contract costs incurred for work performed to date relative to the estimated total contract costs. Estimated total contract costs of contracted items are assessed and determined by the management based on the processes, expected processes date and methods, for each contract. Changes in these estimates might affect the calculation of the percentage of completion and related profits from contracts.

The Group’s accounting policies include measuring financial and non-financial assets and liabilities at fair value through profit or loss. The Group’s finance department personnel responsible for independent fair value validation, by independent sources of information to make the evaluation results close to the market status, confirm the source of independent, reliable, consistent with other resources. It also on behalf of the executable price, regularly update calibration evaluation model, evaluation of the required input value and the fair value of data and any necessary adjustment, ensure that the evaluation results are reasonable.

Different levels of the fair value hierarchy to be used in determining the fair value of financial instruments are as follows:

(a) Level 1: quoted prices (unadjusted) in active markets for identifiable assets or liabilities.
(b) Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (ie as prices) or indirectly (ie derived from prices).
(c) Level 3: inputs for the assets or liability that are not based on observable market data.

For any transfer within the fair value hierarchy, the impact of the transfer is recognized on the reporting date. Please refer to note 6(v) for assumptions used in measuring fair value.

(Continued)

CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(6) Explanation of significant accounts:

(a) Cash and cash equivalents

Cash and demand deposits Time deposits Cash and cash equivalents in consolidated statement of cash flows	December 31, 2023 $ 94,917 128,788 $ 223,705	December 31, 2022
		103,846 150,127
		253,973

(i) Please refer to note 6(v) for the exchange rate risk, and sensitivity analysis of the financial assets and liabilities of the Group.
(ii) Time deposits with original maturity within one year are used to meet short-term cash commitments rather than investment or other purposes, and can be converted into fixed cash at any time with little risk of value changes, so presented in cash and cash equivalents.
(b) Financial assets at fair value through profit or loss

Mandatorily measured at fair value through profit or loss Stocks listed on domestic markets Public company Open-end Funds Total Current Non-Current	December 31, 2023 $ 425,428 8,634 75,663 $ 509,725 December 31, 2023 $ 501,091 $ 8,634	December 31, 2022
		261,440 7,557 251,355
		520,352
		December 31, 2022
		512,795
		7,557

Equity investments at fair value through other comprehensive income: Stocks listed on domestic markets Unlisted stocks Total	December 31, 2023 $ 496 161,582 $ 162,078	December 31, 2022
		437 141,240
		141,677

(Continued)

CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(i) Equity investments at fair value through other comprehensive income.

The Group designated the investments shown above as equity securities at fair value through other comprehensive income because these equity securities represent those investments that the Group intends to hold for long term strategic purposes.

(ii) There were no disposals of strategic investments and transfers of any cumulative gain or loss within equity relating to these investments as of December 31, 2023 and 2022.
(iii) For credit risk and market risk, please refer to note 6 (v).
(iv) As of December 31, 2023 and 2022, none of the financial assets mentioned above had been pleged as collateral.
(d) Notes and accounts receivable (including related parties)

Notes receivable Accounts receivable (including related parties) Less: Loss allowance	December 31, 2023 $ 36,564 25,931 (51) $ 62,444	December 31, 2022 21,416 64,372 (1,188) 84,600

The Group applies the simplified approach to provide for its expected credit losses, i.e. the use of lifetime expected loss provision for all receivables. To measure the expected credit losses, accounts receivables have been grouped based on shared credit risk characteristics and the days past due, as well as incorporated forward looking information, including macroeconomic and relevant industry information. The loss allowance provision were determined as follows:

December 31, 2023	December 31, 2023
Gross carrying amount Weighted- average loss rate $ 24,992 0% 928 0%~5% 11 0%~40% $ 25,931 December 31, 2022		Loss allowance provision
		- 47 4
		51

	Weighted- average loss rate 0% 0%~5% 100%	Loss allowance provision
		- 852 336
		1,188

(Continued)

CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The movement in the allowance for accounts receivable were as follows:

Balance at January 1 Impairment (gains)/losses recognized Amount written off Balance at December 31	2023 $ 1,188 (800) (337) $ 51	2022
		448 740 -
		1,188

The aforementioned notes and accounts receivable of the Group had not been pledged as collateral as of December 31, 2023 and 2022.

(e) Inventories

(i) Inventory details

Weaving, dyeing and printing business Raw material Construction and development business Land held for construction Construction in progress Subtotal Total	December 31, 2023 $ 20,102 $ 20,860 530,534 551,394 $ 571,496	December 31, 2022
		21,338
		21,761 387,948
		409,709
		431,047

The loss (gain) relevant to inventories included in cost of sales were as follows:

2023 Unallocated production overheads $ 46,794 Revenue from sale of scraps (2,553) $ 44,241	2022 22,875 (2,427) 20,448

(Continued)

CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Construction and development business

	December 31, 2023	December 31, 2023
Land under construction (Land held for construction) $ - - 3,595 14,019 3,246 $ 20,860	Construction in progress Buildings and lands held for sale 461,142 - 21,971 - 13,303 - - - 34,118 - 530,534 - December 31, 2022		Total	Contract liability
			461,142 21,971 16,898 14,019 37,364	293,534 - - - -
			551,394	293,534

	Construction in progress 345,812 - 9,458 10,004 22,674 387,948	Buildings and lands held for sale - - - - - -	Total	Contract liability
			345,812 14,020 13,053 10,904 25,920	246,218 - - - -
			409,709	246,218

1) The construction inventories listed above are expected to be recovered over a period of more than twelve months.

2) Interest capitalized for construction for 2023 and 2022 are $9 thousand and $12 thousand, respectively, and rate are 2.475% and 2.350%, respectively.

(iii) As of December 31, 2023 and 2022, the Group did not provide any inventories as collateral for its loans.

(f) Investments accounted for using equity method

A summary of the Group’ s financial information for investments accounted for using the equity method at the reporting date is as follows:

Associates	December 31, 2023 $ 456,182	December 31, 2022
		441,293

(Continued)

CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(i) Associates which are material to the Group consisted of the followings:

Name of associates	Nature of relationship with the Group	Main operating loation/Registered country of the company	Proportion of shareholding and voting rights
			December 31, 2023 December 31, 2022 % 33.61 % 33.61 % 33.61 % 33.61 % 48 % -
Chyang Sheng Vietnam Treasure Star NICSing Tex	Dyeing and printing business International trade Dyeing and printing business	Vietnam Samoa Taiwan

The following consolidated financial information of significant associates has been adjusted according to individually prepared IFRS financial statements of these associates:

1) Chyang Sheng Vietnam:

Current assets Non-current assets Current liabilities Non-current liabilities Net assets Net assets attributable to the Group Operating revenue Net loss Other comprehensive income Total comprehensive income Comprehensive income attributable to the Group Share of net assets of associates as of January 1 Comprehensive income attributable to the Group Share of net assets of associates as of December 31 Add: Net equity difference Balance of equity of associates attributable to the Group as of December 31	December 31, 2023 $ 332,521 378,213 (113,282) (55,637) $ 541,815 $ 541,815 2023 $ 719,319 $ (9,281) (17,386) $ (26,667) $ (26,667) 2023 $ 191,043 (8,962) 182,081 12,227 $ 194,308	December 31, 2022 400,419 467,224 (223,233) (75,928) 568,482 568,482 2022 713,083 (35,289) 41,476 6,187 6,187 2022 188,964 2,079 191,043 25,142 216,185

(Continued)

CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

2) Treasure Star:

Current assets Non-current assets Current liabilities Non-current liabilities Net assets Net assets attributable to the Group Operating revenue Net income Other comprehensive income (loss) income Total comprehensive income Comprehensive income attributable to the Group Share of net assets of associates as of January 1 Comprehensive income attributable to the Group Dividends received from associates Share of net assets of associates as of December 31 Add: Net equity difference Balance of equity of associates attributable to the Group as of December 31	December 31, 2023 $ 888,837 28,778 (177,410) - $ 740,205 $ 740,205 2023 $ 1,341,842 129,301 (1,056) $ 128,245 $ 128,245 2023 $ 216,325 43,103 (10,629) 248,799 8,783 $ 257,582	December 31, 2022 856,881 49,215 (262,515) - 643,581 643,581 2022 1,434,100 134,109 56,954 191,063 191,063 2022 162,424 64,218 (10,317) 216,325 8,783 225,108

(ii) The Group and IDEATEX CO., LTD. established an associate, NICSing Tex, wherein the Group holds 48% shares in it, with the approval of the Taoyuan City Government on August 17, 2023. All related registration procedures had been completed as of the reporting date. As of December 31, 2023, the Group had an equity balance of $4,292 thousand in its associate.
(iii) As of December 31, 2023 and 2022, the Group did not provide any investments accounted for using the equity method as collateral for its loans.
(iv) None of the associates invested by the Group has a public market quotation.

(Continued)

CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(g) Material non-controlling interests of subsidiaries

The material non-controlling interests of subsidiaries were as follows:

Subsidiaries	Main operation place	Percentage of non- controlling interests
		December 31, 2023 December 31, 2022 % 16.32 % 16.32
Progiant Construction	Taiwan

(i) Progiant Construction collective financial information were as follows. The following information has been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers. Intragroup transactions were not eliminated in this information.

Current assets Non-current assets Current liabilities Non-current liabilities Net assets Non-controlling interests Operating revenue Net income Other comprehensive income Total comprehensive income Profit, attributable to non-controlling interests Comprehensive income, attributable to non-controlling interests Net cash flows from operating activities Net cash flows from investing activities Net cash flows from financing activities Net increase in cash and cash equivalents	December 31, 2023 $ 773,319 190,491 (319,287) (1,327) $ 643,196 $ 104,943 2023 $ - $ 138 26,460 $ 26,598 $ 23 $ 4,340 $ 33,971 9,660 (2,000) $ 41,631	December 31, 2022 726,490 164,534 (271,058) (3,368) 616,598 100,603 2022 1,470 1,195 - 1,195 195 195 13,515 9,655 (8,972) 14,198

(Continued)

CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(h) Property, plant and equipment

The cost, depreciation, and impairment of the property, plant and equipment of the Group for the years ended December 31, 2023 and 2022 were as follows:

Land Cost: Balance on January 1, 2023 $ 294,727 Additions - Disposal - Reclassify to investment property - Transfer from (to) - Balance on December 31, 2023 $ 294,727 Balance on January 1, 2022 $ 296,505 Additions - Disposal - Transfer from inventory (1,778) Transfer from (to) - Balance on December 31, 2022 $ 294,727 Accumulated depreciation: Balance on January 1, 2023 $ - Depreciation - Disposal - Reclassify to investment property - Balance on December 31, 2023 $ - Balance on January 1, 2022 $ - Depreciation - Disposal - Reclassify to investment property - Balance on December 31, 2022 $ - Carrying amounts: Balance on December 31, 2023 $ 294,727 Balance on December 31, 2022 $ 294,727 Balance on January 1, 2022 $ 296,505	Buildings and construction 264,905 3,139 - (526) 755 268,273 257,291 7,470 - (20,702) 20,846 264,905 231,725 10,909 - (556) 242,078 239,752 11,276 - (19,303) 231,725 26,195 33,180 17,539	Machinery and equipment 551,555 2,882 (72,979) - 9,116 490,574 585,097 2,550 (60,690) - 24,598 551,555 466,207 18,873 (71,672) - 413,408 509,190 17,707 (60,690) - 466,207 77,166 85,348 75,907	Office and other equipment 429,227 6,438 (1,779) - 5,998 439,884 439,875 10,057 (35,342) - 14,637 429,227 386,912 12,654 (1,659) - 397,907 410,646 11,608 (35,342) - 386,912 41,977 42,315 29,229	Construction in progress and testing equipment 4,921 27,801 - - (9,221) 23,501 12,279 43,292 - - (50,650) 4,921 - - - - - - - - - - 23,501 4,921 12,279	Total 1,545,335 40,260 (74,758) (526) 6,648 1,516,959 1,591,047 63,369 (96,032) (22,480) 9,431 1,545,335 1,084,844 42,436 (73,331) (556) 1,053,393 1,159,588 40,591 (96,032) (19,303) 1,084,844 463,566 460,491 431,459

As of December 31, 2023 and 2022, the property, plant and equipment of the Group had been pledged as collateral for long-term borrowings; please refer to note 8.

(Continued)

CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(i) Right-of-use assets

Information about vehicles leases for which the Group is a lessee was presented below:

Cost:
Balance at January 1, 2023
Additions
Write-off
Balance at December 31, 2023
Balance at January 1, 2022 (the same as ending balance)
Accumulated depreciation:
Balance at January 1, 2023
Depreciation for the year
Write-off
Balance at December 31, 2023
Balance at January 1, 2022
Depreciation for the year
Balance at December 31, 2022
Carrying amount:
Balance at December 31, 2023
Balance at December 31, 2022
Balance at January 1, 2022

Vehicles
$ 2,265
4,614
(1,541)
$
5,338
$
2,265
$ 1,812
541
(1,541)
$
812
$ 1,057
755
$
1,812
$
4,526
$
453
$
1,208

(j) Investment property

Cost: Balance at January 1, 2023 Reclassification Balance at December 31, 2023 Balance at January 1, 2022 Reclassification Balance at December 31, 2022	Owned property Land Buildings $ 263,130 187,260 - 526 $ 263,130 187,786 $ 261,352 166,558 1,778 20,702 $ 263,130 187,260	Total 450,390 526 450,916 427,910 22,480 450,390
	Land $ 263,130 - $ 263,130 $ 261,352 1,778 $ 263,130

(Continued)

CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Accumulated depreciation and impairment losses: Balance at January 1, 2023 Depreciation for the year Reclassification Balance at December 31, 2023 Balance at January 1, 2022 Depreciation for the year Reclassification Balance at December 31, 2022 Carrying amount: Balance at December 31, 2023 Balance at December 31, 2022 Balance at January 1, 2022 Fair value: Balance at December 31, 2023 Balance at December 31, 2022	Owned property Land Buildings Total $ 11,490 183,937 195,427 - 1,156 1,156 - 556 556 $ 11,490 185,649 197,139 $ 11,490 163,440 174,930 - 1,194 1,194 - 19,303 19,303 $ 11,490 183,937 195,427 $ 251,640 2,137 253,777 $ 251,640 3,323 254,963 $ 249,862 3,118 252,980 $ 3,004,405 $ 2,819,472	Total
	Land $ 11,490 - - $ 11,490 $ 11,490 - - $ 11,490 $ 251,640 $ 251,640 $ 249,862
		195,427 1,156 556
		197,139
		174,930 1,194 19,303
		195,427
		253,777
		254,963
		252,980

(i) Investment property comprises office buildings that are leased to third parties under operating leases. The leases of investment properties contain an initial non-cancellable lease term of 1 to 5 years. The subsequent lease term will be negotiated with the lessee, and no contingent rent will be charged. Please refer to note 6(m).
(ii) The fair value of investment properties aforementioned was evaluated based on third-party quotation information, classified to Level 3 fair value.
(iii) As of December 31, 2023 and 2022, the investment property of the Group had been pledged as collateral; please refer to note 8.
(k) Long-term borrowings

The details were as follows:

Secured bank loans Borrowing rate range at the end of the period	December 31, 2023 $ - % -	December 31, 2022
		2,000
		% 2.35

(Continued)

CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(i) The pledged for long-term borrowing, please refer to note 8.
(ii) The above-mentioned borrowings have been repaid in advance in the first quarter of 2023.

(l) Lease liabilities

The lease liabilities were as follows:

The lease liabilities were as follows:
Current Non-current	December 31, 2023 $ 1,545 $ 2,987	December 31, 2022
		418
		41

For the maturity analysis, please refer to note 6(v) financial instruments.

The amounts recognized in profit or loss was as follows:

Interest on lease liabilities Expenses relating to short-term leases	2023 $ 12 $ 4,377	2022 10 4,293

The amounts recognized in the statement of cash flows by the Group were as follows:

Total cash outflow for leases	2023 $ 4,930	2022
		5,061

(m) Operating lease

The Group leases out its investment property. The Group has classified these leases as operating leases, because it does not transfer substantially all of the risks and rewards incidental to the ownership of the assets. Please refer to note 6(j) investment property that sets out information about the operating leases of investment property.

A maturity analysis of lease payments, showing the undiscounted lease payments to be received after the reporting date are as follows:

the reporting date are as follows:
Less than one year One to five years Total undiscounted lease payments	December 31, 2023 $ 43,727 101,601 $ 145,328	December 31, 2022
		30,360 60,498
		90,858

Rental income from investment properties in 2023 and 2022 were $50,237 thousand and $45,568 thousand, respectively.

(Continued)

CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(n) Employee benefits

(i) Defined benefit plans

Reconciliation of defined benefit obligation at present value and plan asset at fair value are as follows:

Present value of the defined benefit obligations Fair value of plan assets Net defined benefit assets	December 31, 2023 $ (34,645) 43,349 $ 8,704	December 31, 2022 (39,784) 46,001 6,217

The Group makes defined benefit plan contributions to the pension fund account with Bank of Taiwan that provides pensions for employees upon retirement. Plans (covered by the Labor Standards Law) entitle a retired employee to receive retirement benefits calculated based on years of service and average monthly salary for the six months prior to retirement.

1) Composition of plan assets

The Group allocates pension funds in accordance with the Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund, and such funds are managed by the Bureau of Labor Funds, Ministry of Labor. With regard to the utilization of the funds, minimum earnings shall be no less than the earnings attainable from two-year time deposits with interest rates offered by local banks.

The Group’ s Bank of Taiwan labor pension reserve account balance amounted to $43,349 thousand as of December 31, 2023. For information on the utilization of the labor pension fund assets, including the asset allocation and yield of the fund, please refer to the website of the Bureau of Labor Funds, Ministry of Labor.

2) Movements in the present value of the defined benefit obligations

The movement in present value of the defined benefit obligations for the Group were as follows:

Defined benefit obligation on January 1 Benefit paid Current service costs and interest cost Remeasurements loss (gain) - Experience loss - Actuarial gain arising from financial assumptions Defined benefit obligation on December 31	2023 $ 39,784 (5,208) 619 (753) 203 $ 34,645	2022 50,030 (9,334) 480 79 (1,471) 39,784

(Continued)

CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

3) Movements of defined benefit plan assets

The movements in the present value of the defined benefit plan assets for the Group were as follows:

Fair value of plan assets on January 1 Contributions paid by the employer Benefits paid Interest income Remeasurements loss - Return on plan asstes (excluding interest income) Fair value of plan assets on December 31	2023 $ 46,001 1,560 (5,208) 655 341 $ 43,349	2022 49,610 1,561 (9,334) 378 3,786 46,001

4) Expenses recognized in profit or loss

The expenses recognized in profit or loss for the Group were as follows:

Current service cost Net interest of net assets for defined benefit obligations Operating cost Selling expenses Administration expenses Research and development expenses	2023 $ 79 (115) $ (36) $ (25) (2) (7) (2) $ (36)	2022 115 (13) 102 62 11 19 10 102

5) Actuarial assumptions

The principal actuarial assumptions at the reporting date were as follows:

Discount rate Future salary increase rate	2023 2022 % 1.300 % 1.400 % 1.125 % 1.125

Expected long-term return on assets was based on the portfolio as a whole, not the sum of individual asset class returns. This rate of return was purely based on historical rates of return without adjustments.

(Continued)

CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The expected allocation payment to be made by the Group to the defined benefit plans for the one-year period after the reporting date is $1,560 thousand.

The weighted average lifetime of the defined benefits plans is 7 years.

6)

Sensitivity analysis

If the actuarial assumptions had changed, the impact on the present value of the defined benefit obligation shall be as follows:

December 31, 2023 Discount rate Future salary increasing rate December 31, 2022 Discount rate Future salary increasing rate	Impact on defined benefit obligations Increase 0.25% Decrease 0.25% $ (520) 533 $ 519 (508) $ (580) 595 $ 581 (569)	Impact on defined benefit obligations Increase 0.25% Decrease 0.25% $ (520) 533 $ 519 (508) $ (580) 595 $ 581 (569)
	Increase 0.25% $ (520) $ 519 $ (580) $ 581
		533 (508) 595 (569)

Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligations by the amounts shown above. The method used in the sensitivity analysis is consistent with the calculation of pension liabilities in the balance sheets.

There is no change in the method and assumptions used in the preparation of the sensitivity analysis for 2023 and 2022.

(ii) Defined contribution plans

The Group allocates 6% of each employee’ s monthly wages to the labor pension personal account at the Bureau of Labor Insurance in accordance with the provisions of the Labor Pension Act. Under these defined contribution plans, the Group allocates a fixed amount to the Bureau of Labor Insurance without additional legal or constructive obligations.

The pension costs incurred from the contributions to the Bureau of Labour Insurance amounted to $3,560 thousand and $3,754 thousand for the years ended December 31, 2023 and 2022, respectively.

(Continued)

CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(o) Income taxes

(i) The components of income tax in the years 2023 and 2022 were as follows:

Current tax expense Deferred tax expense Income tax expense	2023 $ 7,222 6,357 $ 13,579	2022 10,776 7,249 18,025

(ii) The Group has no income tax recognized directly in equity nor other comprehensive income for 2022 and 2022.
(iii) Reconciliation of income tax and profit before tax for 2023 and 2022 is as follows:

Profit excluding income tax Income tax using the Company’s domestic tax rate Change in unrecognized deferred tax assest Tax effect of permanent differences Change in provision in prior periods	2023 $ 120,881 43,275 2,551 (34,007) 1,760 $ 13,579	2022
		86,904
		25,562 370 (5,544) (2,363)
		18,025

(iv) Deferred tax assets and liabilities
1) Unrecognized deferred tax assets

Deferred tax assets have not been recognized in respect of the following items:

Tax effect of deductible temporary differences The carryforward of unused tax losses	December 31, 2023 $ 31,071 - $ 31,071	December 31, 2022
		28,401 119
		28,520

The R.O.C. Income Tax Act allows net losses, as assessed by the tax authorities, to offset taxable income over a period of ten years for local tax reporting purposes. Deferred tax assets have not been recognized in respect of these items because it is not probable that future taxable profit will be available against which the Group can utilize the benefits therefrom.

(Continued)

CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

2) Recognized deferred tax assets

Changes in the amount of deferred tax assets for 2023 and 2022 were as follows:

			Deferred
			promotional
		Pension costs	expenses and others	Total
Balance on January 1, 2023	$	1,492	3,571		5,063
Recognized in profit or loss		498	(574)		(76)
Balance on December 31, 2023	$	1,990	2,997		4,987
Balance on January 1, 2022	$	2,819	3,586		6,405
Recognized in profit or loss		(1,327)	(15)		(1,342)
Balance on December 31, 2022	$	1,492	3,571		5,063

3) Recognized deferred tax liabilities

Changes in the amount of deferred tax liabilities for 2023 and 2022 were as follows:

Balance on January 1, 2023 Recognized in profit or loss Balance on December 31, 2023 Balance on January 1, 2022 Recognized in profit or loss Balance on December 31, 2022	Land revaluation appreciation allowance $ 67,994 - $ 67,994 $ 67,994 - $ 67,994	Others 31,355 6,281 37,636 25,448 5,907 31,355	Total
			99,349 6,281
			105,630
			93,442 5,907
			99,349

(v) The Company’s ,Progiant Construction's, Worthy Textile's, Hong Sheng Investment's, and Sea Some International's tax returns for the year through 2021 were assesed by the tax authority.

(p) Capital and other equity
(i) Ordinary shares

As of December 31, 2023 and 2022, the number of authorized ordinary shares were 300,000 shares with par value of $10 per share. The total value of authorized ordinary shares were amounted to $3,000,000 thousand. The total issued shares were 173,268 thousand shares. All issued shares were paid up upon issuance.

(Continued)

CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Capital surplus

The balances of capital surplus as of December 31, 2023 and 2022, were as follows:

Share capital Treasury share transactions Difference arising from subsidiary’s share price and its carrying value Changes in proportion of shareholding of associates	December 31, 2023 $ 2,141 215,049 31,124 29,162 $ 277,476	December 31, 2022
		2,141 211,499 31,124 29,162
		273,926

According to the R.O.C. Company Act, capital surplus can only be used to offset a deficit, and only the realized capital surplus can be used to increase the common stock or be distributed as cash dividends. The aforementioned realized capital surplus includes capital surplus resulting from premium on issuance of capital stock and earnings from donated assets received. According to the Regulations Governing the Offering and Issuance of Securities by Securities Issuers, capital increases by transferring capital surplus in excess of par value should not exceed 10% of the total common stock outstanding. Among them, if the capital reserve transferred in from the share capital is used to capitalize, the capital reserve transferred in shall be capitalized in the year following the approval and registration of the capital reserve by the competent authority.

(iii) Retained earnings

The Company's article of incorporation stipulate that Company's net earnings should first be used to offset the prior years' deficits, if any, before paying any income taxes. Of the remaining balance, 10% is to be appropriated as legal reserve, and then any remaining profit together with any undistributed retained earnings shall be distributed according to the distribution plan proposed by the Board of Directors and submitted to the stockholders’ meeting for approval.

Dividends shall be distributed in accordance with the rates set forth in the Company's Articles of Incorporation, taking into account the changing nature of the business and the future capital requirements of the life cycle of each product or service and the impact of the tax system, and with the goal of maintaining a stable dividend. Dividends shall be paid at a rate of not less than 20% of the net income after deducting the amount of loss recovery, legal reserve and special reserve for the current year, and the cash dividends shall not be less than 10% of the total dividends for the current year, except for the purpose of improving the financial structure and meeting capital requirements for reinvestment, capacity expansion or other major capital.

1) Legal reserve

When a company incurs no loss, it may, pursuant to a resolution by a shareholders’ meeting, distribute its legal reserve by issuing new shares or by distributing cash, and only the portion of legal reserve which exceeds 25% of the capital may be distributed.

(Continued)

CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

2) Special reserve

The Company chose to apply the exemption under IFRS 1 at its initial adoption of IFRS Accounting Standards Including accumulated translation adjustment incurred reset, adoption of deemed cost waiver and lump-sum recognition of pension actuarial benefits are classified to retained earnings at the amount of $143,305 thousand. The Company shall allocate the same amount in special reserve in accordance with the requirements issued by the Financial Supervisory Commission. However, in the consolidated financial statements prepared by the company in accordance with IFRS on January 1, 2012, the retained earnings was $56,835 thousand, so the full amount is listed as special reserve. In accordance with the requirements issued by the FSC, a portion of earnings shall be allocated as special reserve during earnings distribution. If the Company has already reclassified a portion of earnings to special reserve under the preceding subparagraph, it shall make supplemental allocation of special reserve for any difference between the amount it has already allocated and the amount of the current-period total net reduction of other shareholders’ equity. An equivalent amount of special reserve shall be allocated from the after-tax net profit in the period, plus items other than after-tax net profit in the period, that are included in the undistributed current-period earnings and the undistributed prior-period earnings. (When the Company distributes its 2021 earnings in 2022, a portion of its current-period earnings and undistributed prior-period earnings shall be reclassified to special earnings reserve. When the Company distributes its 2022 earnings in 2023, the after-tax net profit in the period, plus items other than the after-tax net profit in the period, that are included in the undistributed current-period earnings and undistributed prior-period earnings, shall be reclassified to special earnings reserve.) A portion of undistributed prior-period earnings shall be reclassified to special earnings reserve (and does not qualify for earnings distribution) to account for cumulative changes to the net reduction of other shareholders’equity pertaining to prior periods. Amounts of subsequent reversals pertaining to the net reduction of other shareholders’ equity shall qualify for additional distributions. The amounts of special reserve as of December 31, 2023 and 2022 both were $56,835 thousand.

3) Earnings distribution

The amounts of cash dividends on the appropriations of earnings for 2022 and 2021 had been approved during the shareholders’ meeting on June 28, 2023 and June 27, 2022, respectively. The relevant dividend distributions to shareholders were as follows, and the relevant information can be inquired at the Market Observation Post System.

Dividends distributed to ordinary shareholders Cash Dividends	2022 Amount per share Total Amount $ 0.4 69,307	2021	2021
	Amount per share $ 0.4	Amount per share 0.4	Total Amount
			69,307

(Continued)

CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(iv) Treasury shares

As of December 31, 2023 and 2022, the total amount of treasury shares both were $108,791, and 8,875 thousand shares, in which acquired by Hong Sheng Investment (subsidiary of the Company) in November, 2001 before the amendment of the Company Law. Hong Sheng Investment merged with Worthy Textile on December 1, 2023, with Worthy Textile being the sole existing company, acquiring the treasury shares of Hong Sheng Investment.

In accordance with the requirements of Securities and Exchange Act, treasury shares held by the Company should not be pledged, and do not hold any shareholder rights before their transfer.

(q) Earnings per share

The details on the calculation of basic earnings per share and diluted earnings per share were as follows:

(i) Basic earnings per share

Profit attributable to ordinary shareholders of the Company Weighted average number of ordinary shares at 31 December (in thousands) Basic earnings per share Issued ordinary shares at 1 January Effect of treasury shares held Weighted average number of ordinary shares at 31 December (ii) Diluted earnings per share Profit attributable to ordinary shareholders of the Company Weighted average number of ordinary shares at 31 December (diluted/ in thousands) Diluted earnings per share Weighted average number of ordinary shares (basic) Effect of treasury shares held Effect of estimated employee share bonus Weighted average number of ordinary shares (diluted) at December 31	2023 $ 107,279 164,393 $ 0.65 2023 173,268 (8,875) 164,393 2023 $ 107,279 164,470 $ 0.65 2023 173,268 (8,875) 77 164,470	2022 68,684 164,393 0.42 2022 173,268 (8,875) 164,393 2022 68,684 164,466 0.42 2022 173,268 (8,875) 73 164,466

(Continued)

CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(r) Revenue from contracts with customers
(i) Disaggregation of revenue

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2023
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(ii)	Weaving and dyeing and Finishing Primary geographical markets Taiwan $ 343,518 Major products/services lines Cloth processing $ 343,514 Others 4 $ 343,518 Weaving and dyeing and Finishing Primary geographical markets Taiwan $ 486,163 Major products/services lines Cloth processing $ 485,938 Sale of real estate - Others 225 Cloth processing $ 486,163 Contract balances Notes and accounts receivable Less: allowance for impairment Total Contract asset-OEM Less: allowance for impairment Total Contract liabilities- Sale of real estate	Weaving and dyeing and Finishing $ 343,518 $ 343,514 4 $ 343,518	Construction Other - 3,990 - - - 3,990 - 3,990 2022	Total
				347,508
				343,514 3,994
				347,508

			Construction Other Total 1,470 8,299 495,932 - - 485,938 1,470 - 1,470 - 8,299 8,524 1,470 8,299 495,932 December 31, 2023 December 31, 2022 $ 62,495 85,788 (51) (1,188) $ 62,444 84,600 $ 13,901 11,271 - - $ 13,901 11,271 $ 293,534 246,218	Total
				495,932
				485,938 1,470 8,524
				495,932

(Continued)

CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(i) For details on accounts receivables and allowance for impairment, please refer to note 6(d).
(ii) The amount of revenue recognized for the years ended December 31, 2023 and 2022 that was included in the contract liability balance at the beginning of the period were $0 thousand.
(s) Employee compensation and directors' and supervisors' remuneration

In accordance with the articles of incorporation the Company should contribute no less than 1% of the profit before income taxe as employee compensation and not exceed 3% as directors' and supervisors' remuneration when there is profit for the year. However, if the Company has accumulated deficits, the profit should be reserved to offset the deficit. The amount of remuneration of each director and supervisor and of compensation for employees entitled to receive the abovementioned employee compensation is approved by the Board of Directors. The recipients of shares and cash may include the employees of the Company's affiliated companies who meet certain conditions.

For the years ended December 31, 2023 and 2022, the Company estimated its employee remuneration amounting to $1,149 thousand and $825 thousand, and directors' and supervisors' remuneration amounting to $3,446 thousand and $2,474 thousand, respectively. The estimated amounts mentioned above are calculated based on the net profit before tax, excluding the remuneration to employees, directors and supervisors of each period, multiplied by the percentage of remuneration to employees, directors and supervisors as specified in the Company's articles. These remunerations were expensed under operating costs or operating expenses during 2023 and 2022. The amounts, as stated in the consolidated financial statements, are identical to those of the actual distributions for 2023 and 2022.

(t) Interest income and other income

The details of interest income and other income for the years ended December 31, 2023 and 2022, were as follows:

Interest income from bank deposits Rental income Dividend income Others	2023 $ 2,857 2023 $ 50,237 17,810 12,328 $ 80,375	2022
		1,858
		2022
		45,568 22,803 5,483
		73,854

(Continued)

CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(u) Other gains and losses

The details of other gains and losses for the years ended December 31, 2023 and 2022, were as follows:

Gains (Losses) on disposals of investments Gains (Losses) on disposals of property, plant and equipment Impairment loss Gains (Losses) on financial assets at fair value through profit or loss Foreign exchange (losses) gains Others	2023 $ 33,050 (1,028) (12,915) 39,608 (168) (455) $ 58,092	2022 (17,565) 95 - (5,388) 333 (205) (22,730)

(v) Financial instruments

(i) Credit risk

Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations, which arises from the Group’s accounts receivable and investments.

1) Accounts receivable and other receivables

As the weaving ,dyeing and finishing business, the Group has adopted a policy that only trading with the parties with good credit standing and the Group shall secure a collateral to lighten the risk of financial loss arising from arrears when it is necessary. The major customers are rated by the Group, using public financial information and their transaction histories. The Group keeps monitoring the credit exposure and the customers’ creditworthiness, and then distributes total transaction amounts into the qualified customers. The credit limit of the customers is reviewed and approved annually to control the credit exposure.

As the real estate development business, most of the land premiums for sales are accounts received in advance, and most of them can be financed by bank housing loans, so there is no significant credit risk in the accounts receivable of the Group.

The Group did not have any collateral or other credit enhancements to avoid credit risk of financial assets.

(Continued)

CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

2) Investment

The credit risk exposure of bank deposits, fixed-income investment, and other financial instruments is measured and monitored by the Group’s finance department. As the Group deals with banks and other external parties with good credit standing and with financial institutions which are graded above investment level, the management believes that the Group does not have any compliance issues, and therefore, there is no significant credit risk.

3) Exposure to credit risk

As of December 31, 2023 and 2022, the carrying amount of financial assets, which represents the maximum exposure to credit risk, amounting to $1,131,850 thousand and $1,188,093 thousand, respectively.

4) Concentration of credit risk The Group’ s credit risk is mainly affected by the credit characteristics of each creditor. This is also an impact on credit risk from the business of the customer. As of December 31, 2023 and 2022, 70% and 69%, respectively, of the ending balance of accounts receivable arose from sales to individual customers constituting the top five customers (excluding real estate development business). The real estate development business has a large customer base and does not significantly trade with a single customer, and the credit risk of accounts receivable is not significantly concentrated.

(ii) Liquidity risk

The following table shows the contractual maturities of financial liabilities, including the impact of estimated interest payments.

Carrying amount December 31, 2023 Notes and accounts payable $ 56,773 Lease liabilities 4,532 Other financial liabilities 61,465 Deposit guarantee received 11,595 $ 134,365 December 31, 2022 Notes and accounts payable $ 56,214 Lease liabilities 459 Other financial liabilities 52,642 Long-term borrowing 2,000 Deposit guarantee received 10,845 $ 122,160	Contractual cash flows 56,773 4,699 61,465 11,595 134,532 56,214 461 52,642 2,016 10,845 122,178	Within 1 year 56,773 1,639 61,465 - 119,877 56,214 420 52,642 - - 109,276	1~2 years - 1,596 - - 1,596 - 41 - 2,016 - 2,057	2~ 5 years
				- 1,464 - 11,595
				13,059
				- - - - 10,845
				10,845

The Group does not expect the cash flows included in the maturity analysis to occur significantly earlier or at significantly different amounts.

(Continued)

CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(iii) Market risk

1) Currency risk

The Group’s significant exposure to foreign currency risk were as follows:

			December 31, 2023	December 31, 2023	December 31, 2023	December 31, 2022	December 31, 2022	December 31, 2022
			Foreign	Exchange		Foreign	Exchange
			currency	rate	TWD	currency	rate	TWD
Financial	assets
USD		$	51	30.71	1,555	120	30.71	3,695

The Group’s exposure to foreign currency risk arises from the translation of the foreign currency exchange gains and losses on cash and cash equivalents, accounts receivable (including relatied parties) and other receivables that are denominated in foreign currency.A strengthening (weakening) of 1% of the NTD against the above mentioned foreign currency would have increased (decreased) the net profit after tax by $16 thousand and $37 thousand, respectively. This analysis is based on foreign currency exchange rate variances that the Group considered to be reasonably possible at the reporting date. The analysis assumes that all other variables remain constant and ignores any impact of forecasted sales and purchases. The analysis is performed on the same basis for 2022 (prior year).

The amount of exchange gains and losses (including realized and unrealized) of the Group’s monetary items converted into the functional currency, and the exchange rate information that has been converted to the functional currency of the parent company, NTD (that is, the currency expressed by the Group) are as follows:

NTD	2023 Foreign exchange gain (loss) Exchange rate $ (168) -	2022 Foreign exchange gain (loss) Exchange rate 333 1
	Foreign exchange gain (loss) $ (168)

2) Interest rate analysis

The details of financial assets and liabilities exposed to interest rate risk were as follows:

Fixed-rate instruments: Financial assets Variable-rate instruments: Financial assets Financial liabilities	Carrying amount	Carrying amount
	December 31, 2023 $ 18,588 $ 327,477 - $ 327,477	December 31, 2022
		-
		388,370 (2,000)
		386,370

(Continued)

CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The following sensitivity analysis is based on the exposure to the interest rate risk of derivative and non derivative financial instruments on the reporting date. If the interest rate had increased / decreased by 1 basis points, the Group’s profit before income taxe would have increased / decreased by $819 thousand and $966 thousand for the year 2023 and 2022, with all other variable factors remaining constant. This is mainly due to the Group’s savings at variable rates. In addition, the Group's fixed-rate financial assets are measured at cost after amortization, and changes in market interest rates on the reporting date have no impact on profit or loss, so the sensitivity analysis of changes in fair value is not intended to be disclosed.

3) Other market price risk

For the years ended December 31, 2023 and 2022, the sensitivity analyses for the changes in the securities price at the reporting date were performed using the same basis for the profit and loss as illustrated below:

Prices of securities at the reporting date	2023 Other comprehensive income before tax Profit before income tax $ 50 50,973 (50) (50,973)	2022 Other comprehensive income before tax Profit before income tax 44 52,035 (44) (52,035)
	Other comprehensive income before tax $ 50 (50)
Increasing 10% Decreasing 10%

(iv) Fair value of financial instruments

1) Fair value value hierarchy

The carrying amount and fair value of the Group’ s financial assets and liabilities, including the information on fair value hierarchy were as follows; however, except as described in the following paragraphs, for financial instruments not measured at fair value whose carrying amount is reasonably close to the fair value, and lease liabilities, disclosure of fair value information is not required:

(Continued)

CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

	December 31, 2023	December 31, 2023	December 31, 2023
Book value		Fair value
	Level 1 501,091 - 501,091 496 - 496	Level 2 - 8,634 8,634 - - -	Level 3 - - - - 161,582 161,582	Total 501,091 8,634 509,725 496 161,582 162,078
$ 501,091 8,634 $ 509,725 $ 496 161,582 $ 162,078 $ 223,705 62,444 133,490 40,408 $ 460,047 $ 56,773 4,532 61,465 11,595 $ 134,365

(Continued)

CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

	December 31, 2022	December 31, 2022	December 31, 2022
Carrying amount $ 512,795 7,557 $ 520,352 $ 437 141,240 $ 141,677 $ 253,973 84,600 147,163 40,328 $ 526,064 $ 56,214 459 52,642 2,000 10,845 $ 122,160		Fair value
	Level 1 512,795 - 512,795 437 - 437	Level 2 - 7,557 7,557 - - -	Level 3 - - - - 141,240 141,240	Total
				512,795 7,557
				520,352
				437 141,240
				141,677

2) Valuation techniques for financial instruments measured at fair value

A financial instrument is regarded as being quoted in an active market if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency and those prices represent actual and regularly occurring market transactions on an arm’s-length basis. Whether transactions are taking place ‘regularly’ is a matter of judgment and depends on the facts and circumstances of the market for the instrument.

(Continued)

CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Quoted market prices may not be indicative of the fair value of an instrument if the activity in the market is infrequent, the market is not well-established, only small volumes are traded, or bid-ask spreads are very wide. Determining whether a market is active involves judgment.

The financial instruments held by the Group were classified as follows:

． Financial intruments with active markets: including listed stock. The market price is established as the fair value.
． Financial intruments without active markets: Measurements of fair value are based on a valuation technique or quoted price from a competitor. Fair value measured by a valuation technique can be extrapolated from similar financial instruments, the discounted cash flow method, or other valuation technique including a model using observable market data at the reporting date.
3) The Group has no transfer of the fair value hierarchy in year 2023 and 2022.
4) Reconciliation of Level 3 fair values

Opening balance, January 1, 2023 Total gains and losses recognized in other comprehensive income Ending Balance, December 31, 2023 Opening balance, January 1, 2022 Total gains and losses recognized in other comprehensive income Ending Balance, December 31, 2022	Fair value through other comprehensive income Non quoted equity instrument $ 141,240 20,342 $ 161,582 $ 141,585 (345) $ 141,240

(Continued)

CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

5) Quantified information on significant unobservable inputs (Level 3) used in fair value measurement

The Group’s financial instruments that use Level 3 inputs to measure fair value include “fair value through other comprehensive income – equity investments”.

There are multiple significant unobservable inputs for the equity instrument investment of the Group without active market. Significant unobservable inputs for the equity instrument investment without active market are independent of each other, so there is no mutual correlation.

Quantified information of significant unobservable inputs was as follows:

Item Financial assets at fair value through other comprehensive income	Valuation technique Market approach	Significant unobservable inputs Inter-relationship between significant unobservable inputs and fair value measurement ‧Lack-of-marketability Discount (20%~35% and 20%~30% at December 31, 2023 and 2022, respectively) ‧P/B ratio multiplier (0.97~3.31 and 1.26~3.43 at December 31, 2023 and 2022, respectively) ‧C.E.R. ratio multiplier (10.62~24.12 and 7.56~21.37 at December 31, 2023 and 2022, respectively) ‧The higher the Lack- of-marketability discount is, the lower the fair value ‧The higher the ratio, the higher the fair value ‧The higher the ratio, the higher the fair value

6) Fair value measurements in Level 3 – sensitivity analysis of reasonably possible alternative assumptions

The Group's measurement of the fair value of financial instruments is reasonable, but if different evaluation models or evaluation parameters are used, the evaluation results may be different. For fair value measurements in Level 3, changing one or more of the assumptions to reflect reasonably possible alternative assumptions would have the following effects:

(Continued)

CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2023 Financial assets at fair value through other comprehensive income Equity investments without an active market December 31, 2022 Financial assets at fair value through other comprehensive income Equity investments without an active market	Inputs P/B and EV ratio Lack of marketability discount P/B and EV ratio Lack of marketability discount	Variation 5% 5% 5% 5%	Other comprehensive income Favour- able Unfavour- able 8,191 (8,191) 10,955 (10,955) 7,286 (7,286) 9,747 (9,747)

(w) Financial risk management

(i) Overview

The Group have exposures to the following risks from its financial instruments:

1) Credit risk
2) Liquidity risk
3) Market risk

The objectives, policies and processes for measuring, managing the above mentioned risks and more disclosures about the quantitative effects of these risks exposures, please refer to Note 6(v).

(ii) Structure of risk management

The Group’s risk management policies are established to identify and analyze the risks faced by the Group, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect any changes in market conditions and the Group’s activities. The Group, through its training and management standards and procedures, aims to develop a disciplined and constructive control environment in which all employees understand their roles and obligations.

The Board of Directors oversees how management monitors compliance with the Group’s risk management policies and procedures and reviews the adequacy of the risk management framework in relation to the risks faced by the Group. The Board of Directors is assisted in its oversight role by Internal Audit. Internal Audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the Board of Directors.

(Continued)

CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(x) Capital management

The Group’s objectives for managing capital to safeguard the necessary financial resources to meet the needs of working capital, capital expenditure and debt repayment in the next twelve months. And considering the particularity of the real estate development business which the source of funds for real estate development can be obtained through pre-sale method. The management uses the debt ratio excluding advance payment for real estate to manage capital. As of December 31, 2023 and 2022, the Group’s debt ratio were 19% and 18%, respectively. As of December 31, 2023, the Group’ s capital management strategy is consistent with the prior year.

(y) Investing and financing activities not affecting current cash flow

The Group’s investing and financing activities which did not affect the current cash flow in the years ended December 31, 2023 and 2022, were as follows:

(i) For right-of-use assets under leases, please refer to note 6(i).
(ii) Reconciliation of liabilities arising from financing activities were as follows:

Long-term borrowings Lease liabilities Total liabilities from financing activities Long-term borrowings Lease liabilities Total liabilities from financing activities	January 1, 2023 $ 2,000 459 $ 2,459 January 1, 2022 $ - 1,217 $ 1,217	Cash flows (2,000) (541) (2,541) Cash flows 2,000 (758) 1,242	Others December 31, 2023 - - 4,614 4,532 4,614 4,532 Others December 31, 2022 - 2,000 - 459 - 2,459	Others December 31, 2023 - - 4,614 4,532 4,614 4,532 Others December 31, 2022 - 2,000 - 459 - 2,459
				2,000 459
				2,459

(7) Related-party transactions:

(a) Names and relationship with the Company

Name of related party Relationship with the Group Associate Substantial related person

Chyang Sheng Vietnam Co., Ltd (Chyang Sheng Vietnam) Shinkong Textile Co., Ltd.( Shinkong Textile)

(Continued)

CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(b) Significant transactions with related parties

(i) Sales

The amounts of sales and accounts receivable by the Group to related parties were as follows:

Sales	Sales	Accounts receivable	Accounts receivable
2023 $ 3,990 99,714 $ 103,704	2022	December 31, 2023 December 31, 2022 1,112 3,405 27,946 38,753 29,058 42,158
	8,299 169,200		3,405 38,753
	177,499		42,158

The selling price and payment terms for related parties approximated general customers.

(ii) Lease

The Group rented plant to other related parties and recognized the amount of rental revenue were as follows:

Shinkong Textile	Amount	Amount	Other receivables	Other receivables
	2023 $ 16,117	2022	December 31, 2023 December 31, 2022 7,961 9,035
		13,438		9,035

The other receivables include rent receivables and collections and payments at the end of the period, and the rental income is calculated using the number of pings with reference to market conditions and collected on a monthly basis.

Key management personnel compensation comprised:

2023 Short-term employee benefits $ 13,708	2022
	11,985

(8) Pledged assets:

The carrying values of assets pledged as security were as follows:

Pledged assets	Object Short-term and long-term borrowings " The pre-collected for the Zhongshan urban renewal project is dedicated to the construction funds of this case	December 31, 2023 $ 417,480 28,332 122,692 $ 568,504	December 31, 2022
Land(Notes) Buildings(Notes) Other financial assets -current			417,480 36,503 134,487
			588,470

(Notes) Property, plant and equipment, and investment property are separately accounted for.

(Continued)

CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(9) Significant contingent liabilities and unrecognized commitments:

(a) The Group signed a long-term steam supply contract with the supplier. Under the premise of stable and sufficient supply, the Group committed the price agreed in the contract, the agreed period and the minimum usage estimate to the supplier. The minimum payable amount by the Group in the future is as follows:

Contract commitment	December 31, 2023 $ 57,324	December 31, 2022
		41,940

(b) The details of the joint investment and construction contract signed by the Group are as follows:

Project name	Landlord or Co-Investor Builder	Land number	Joint construction Completed/Estimated Completion Year urban renewal 2023
Zhongshan urban renewal project	Taipei City Government	Section 4 of Zhongshan Section, Zhongshan District

The Refundable deposit paid by the Group for the real estate development business are as follows:

Refundable deposit	December 31, 2023 $ 31,660	December 31, 2022 31,030

As of December 31, 2023, the total contract price signed with the contractor is $356,200 thousand, and $301,009 thousand has been paid in accordance with the contract.

(c) The price of pre-sale house sales contract signed by the Group and the customerprice of presale contracts between the Group and its customers is as follows:

The price of the signed sales contract Amount collected as agreed	December 31, 2023 $ 952,730 $ 290,620	December 31, 2022
		952,730
		246,540

(d) Due to operating and financing needs of the Group, the amount of endorsement guarantee provided by the financial institution at December 31, 2023 and 2022 are $755,048 thousand and $350,000 dollar, respectively, and the actual amount of expenditure are both $0 thousand dollar.
(e) As of December 31, 2023 ans 2022, the unrecognized contractual commitment amount of property, plant and equipment acquired by the Group is $5,423 and $,1722 thousand dollar.

(Continued)

CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(f) .As the waste disposal contractor was not able to perform its duties, the Chiayi Environmental Protection Bureau originally requested the Group to pay a fee of $869 thousand in accordance with the provisions of the Administrative Execution act. Howerver, after both parties reached a settlement, the Group only had to pay the amount of $82 thousand to the Chiayi Environmental Protection Bureau. The case was deemed closed in October 2023.
(g) Due to the Zhongshan urban renewal project, the Group provided the Taipei City Government performance guarantee notes issued by a financial institution, at the total of $55,048 thousand as of December 31, 2023.
(h) The Group’s outstanding standby letter of credit for acquiring equipment are as follows:

Outstanding standby letter of credit	December 31, 2023 $ 1,612	December 31, 2022 -

(10) Losses due to major disasters: None

(11) Subsequent events: None

(12) Other:

A summary of employee benefits, depreciation, and amortization, by function, is as follows:

By function By item	2023	2023	2023	2022	2022	2022
	Cost of sales	Operating expenses	Total	Cost of sales	Operating expenses	Total
Employee benefits Salary Labor and health insurance Pension Others Depreciation (Note) Amortization	71,031 7,109 2,223 1,780 42,436 -	29,602 2,944 1,301 7,187 541 -	100,633 10,053 3,524 8,967 42,977 -	82,439 7,511 2,503 2,300 40,591 -	30,259 2,905 1,353 6,373 755 -	112,698 10,416 3,856 8,673 41,346 -

(Note)Excluding the depreciation of investment property in 2023 and 2022, which were $1,156 thousand dollar and $1,194 thousand dollar, respectively.

(Continued)

CHYANG SHENG DYEING & FINSHING CO., LTD. AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements

(13) Other disclosures:

(a) Information on significant transactions:

The following is the information on significant transactions required by the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” for the Group:

(i) Loans to other parties:

Number	Name of lender	Name of borrower	Account name	Related party	Highest balanceof financing to other parties during the period	Ending balance	Actual usage amount during the period	Range of interest rates during the period	Purposes of fund financing for the borrower	Transaction amount for business between two parties	Reasons for short- term financing	Loss allowance	Collateral	Collateral	Individual funding loan limits	Maximum limit of fund financing
													Item	Value
0	The Company	Progiant Construction	Other receivables- related parties	Yes	200,000	200,000	-	2%	2	-	Working Capital	-	-	-	227,327	454,653

Note 1: The financing company's total financing amount should not exceed 20% of its net asset value and the financing for a counterparty should not exceed 10% of its net asset value. However, for a counterparty that directly or indirectly holds more than 50% of the voting rights of the reinvestment and the parent company of the reinvestment company (that is, the Group), it is still limited to 10% of the net value of the latest financial statement.

Note 2: The aforementioned inter-company transactions have been eliminated in the consolidated financial statements.
Note 3: The nature of financing purposes:
1) Represents entities with business transaction with the Group;
2) Represents where an inter-company or inter-firm short-term financing facility is necessary.

(ii) Guarantees and endorsements for other parties:

No.	Name of guarantor	Counter-party of guarantee and endorsement	Counter-party of guarantee and endorsement	Limitation on amount of guarantees and endorsements for a specific enterprise	Highest balance for guarantees and endorsement during the period	Balance of s guarantees and endorsements as of reporting date	Actual usage amount during the period	Property pledged for guarantees and endorsements (Amount)	Ratio of accumulated amounts of guarantees and endorsements to net worth of the latest financial statements	Maximum amount for guarantees and endorsements	Parent company endorsements/ guarantees to third parties on behalf of subsidiary	Subsidiary endorsements/ guarantees to third parties on behalf of parent company	Endorsements/ guarantees to third parties on behalf of companies in Mainland China
		Name	Relationshi p with the Company
0	The Company	Progiant Constructi on	Note2	1,136,633	755,048	755,048	-	-	% 33.21	1,136,633	Y	N	N

Note 1: The ceiling for the total guaranteed amount was 50% of the Company's net assel value, and the limit on the guaranted amount for a single party was 20% of the Company's net asset value. But for an entity that holds more than 75% shares by the Company, the limit of the guaranteed amount was 50% of the Company's net value of the latest financial statement.

Note 2: Subsidary which owned more than 50 percent by the guarantor.

(Continued)

CHYANG SHENG DYEING & FINSHING CO., LTD. AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements

(iii) Securities held as of December 31, 2023 (excluding investment in subsidiaries, associates and joint ventures):

Name of holder	Category and name of security	Relationship with company	Account title		Ending balance			Highest Percentage of ownership (%)	Note
				Shares/Units (thousands)	Carrying value	Percentage of ownership (%)	Fair value
The Company `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃`	TA-YUAN COGENERATION COMPANY LTD. Yong Cheng Environmental Tech. Co.,Ltd Linden Technologies Inc. Capital Money Market Fund Fund-YUANTA US TREASURY 20+ YEAR BOND ETF Fund-YUANTA US 20+ YEAR BBB CORPORATE BOND ETF Fund-CAPITAL TIP CUSTOMIZED TAIWAN ESG LOW CARBON 50 ETF Stock-AUO Corporation Stock-TSRC CORPORATION Stock-Good Way Stock-AVALUE TECHNOLOGY INC Stock-MATERIALS ANALYSIS TECHNOLOGY INC Stock-CUB ELECPARTS INC Stock-Etron Technology Stock-China Airlines Stock-ZERO ONE TECHNOLOGY CO LTD Stock-MOSA INDUSTRIAL CORP Stock-GREAT WALL ENTERPRISE CO LTD Stock-ENNOSTAR INC Stock-EPISIL HOLDING INC	None `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃`	Financial assets at fair value through other comprehensive income- non-current `〃` Financial assets at fair value through profit or loss- current `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃`	11 400 36 1,529 300 300 200 900 200 155 180 216 42 - 120 60 10 20 130 50	$ 496 1,260 - 25,335 9,255 10,800 3,470 16,335 4,820 5,240 21,510 50,126 5,649 15 2,598 3,924 238 1,170 6,019 3,605	0.01 0.35 1.15 - - - - 0.01 0.02 0.25 0.25 0.33 0.03 - - 0.04 - - 0.02 0.02	496 1,260 - 25,335 9,255 10,800 3,470 16,335 4,820 5,240 21,510 50,126 5,649 15 2,598 3,924 238 1,170 6,019 3,605	0.01 0.35 1.15 - - - - 0.01 0.02 0.25 0.25 0.33 0.03 - - 0.04 - - 0.02 0.02

(Continued)

CHYANG SHENG DYEING & FINSHING CO., LTD. AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements

Name of holder	Category and name of security	Relationship with company	Account title		Ending balance			Highest Percentage of ownership (%)	Note
				Shares/Units (thousands)	Carrying value	Percentage of ownership (%)	Fair value
`〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` Worthy Textile `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃`	Stock-EPISIL- PRECISION INC Stock-China Steel Stock-Taiwan-Asia Stock-QISDA CORPORATION Stock-Center Lab Stock-CO-TECH DEVELOPMENT CORP Stock-PARPRO CORPORATION Stock-Chinatrust Commercial Stock-CHANNEL WELL TECHNOLOGY CO LTD LE YOUNG CONSTRUCTION CO., LTD. HOPE VISION CO., LTD. The Compeny Asia Pacific Federation of Industry and Commerce Fund-ICE FactSet Battery and Energy Storage Technology Stock-Shinkong Synthetic Fibers Stock-SOFTSTAR ENTERTAINMENT Stock-DE LICACY Stock-Dyaco Stock-China Steel Stock-TA CHEN STAINLESS PIPE Stock-TSRC CORPORATION Stock-CUB ELECPARTS INC Stock-EVERLIGHT ELECTRONICS CO LTD Stock-AUO Corporation Stock-China Airlines Stock-AEROSPACE INDUSTRIAL DEVELOPMENT CORPORATION Stock-Cathay Financial	`〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` None `〃` `〃` None `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃`	`〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` Financial assets at fair value through profit or loss- non- current Financial assets at fair value through other comprehensive income- non-current `〃` Financial assets at fair value through profit or loss- non- current `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃`	20 20 20 60 38 30 30 20 10 506 1,000 8,875 22 50 200 3,500 483 28 30 122 300 41 40 600 120 10 1	1,236 540 942 2,880 1,704 1,818 1,063 567 842 8,634 4,500 159,746 - 498 3,110 71,750 6,440 991 810 4,831 7,230 5,494 2,000 10,890 2,598 536 24	0.01 - - - 0.01 0.01 0.03 - - 0.51 1.15 5.12 0.03 - 0.01 2.68 0.12 0.02 - 0.01 0.04 0.03 - 0.01 - - -	1,236 540 942 2,880 1,704 1,818 1,063 567 842 8,634 4,500 159,746 - 498 3,110 71,750 6,440 991 810 4,831 7,230 5,494 2,000 10,890 2,598 536 24	0.01 - - - 0.01 0.01 0.03 - - 0.51 1.15 5.12 0.03 - 0.01 2.68 0.12 0.02 - 0.01 0.04 0.03 - 0.01 - - -

(Continued)

CHYANG SHENG DYEING & FINSHING CO., LTD. AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements

Name of holder	Category and name of security	Relationship with company	Account title		Ending balance			Highest Percentage of ownership (%)	Note
				Shares/Units (thousands)	Carrying value	Percentage of ownership (%)	Fair value
`〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` Progiant Construction `〃` `〃` `〃` `〃`	Stock-Chinatrust Commercial Stock-EPISIL- PRECISION INC Stock-ASIA OPTICAL Stock-ZERO ONE TECHNOLOGY CO LTD Stock-Good Way Stock-AVALUE TECHNOLOGY INC Stock-Innolux Stock-MATERIALS ANALYSIS TECHNOLOGY INC Stock-AVer Information Stock-EPISIL HOLDING INC Stock-ENNOSTAR INC Stock-Center Lab Stock-MOSA INDUSTRIAL CORP Stock-NEW ERA ELECTRONICS CO LTD Stock-Etron Technology Stock-SYMTEK AUTOMATION ASIA CO LTD Stock-EVEREST TEXTILE LI JIN ENGINEERING CO., LTD. HONG XIN CONSTRUTION CO., LTD. Capital Money Market Fund Stock-Chinatrust Commercial Stock-China Airlines	`〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` None `〃` `〃` `〃` `〃`	`〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` Financial assets at fair value through other comprehensive income- non-current `〃` Financial assets at fair value through profit or loss- current `〃` `〃`	40 30 10 20 2,759 210 579 10 40 20 50 34 10 361 86 20 2,000 7,687 2,000 1,586 25 20	1,134 1,854 702 1,308 93,515 25,095 8,282 2,333 1,908 1,442 2,315 1,495 238 11,498 4,652 2,090 14,880 132,302 23,520 26,305 709 433	- 0.01 - 0.01 4.51 0.29 0.01 0.02 0.04 0.01 0.01 - - 0.39 0.03 0.03 0.29 5.13 3.33 - - -	1,134 1,854 702 1,308 93,515 25,095 8,282 2,333 1,908 1,442 2,315 1,495 238 11,498 4,652 2,090 14,880 132,302 23,520 26,305 709 433	- 0.01 - 0.01 4.51 0.29 0.01 0.02 0.04 0.01 0.01 - - 0.39 0.03 0.03 0.29 5.13 3.33 - - -	Note

Note: The Company's shares held by subsidiaries are treated as treasury stocks and have been eliminated in the consolidated financial report.

(Continued)

CHYANG SHENG DYEING & FINSHING CO., LTD. AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements

(iv) Individual securities acquired or disposed of with accumulated amount exceeding the lower of NT$300 million or 20% of the capital stock:

(In Thousands of New Taiwan Dollars)

Name of company	Category and name of security	Account name	Name of counter- party	Relationship with the company	Beginning Balance	Beginning Balance	Purchases	Purchases	Sales	Sales	Sales	Sales	Ending Balance	Ending Balance
					Shares (thousands)	Amount	Shares (thousands)	Amount	Shares (thousands)	Price	Cost	Gain (loss) on disposal	Shares (thousands)	Amount
The Company	Capital Money Market Fund	Financial assets at fair value through profit or loss- current	-	-	4,919	80,504	26,892	443,000	30,282	499,106	498,169	937	1,529	25,335

(v) Acquisition of individual real estate with amount exceeding the lower of NT$300 million or 20% of the capital stock: None
(vi) Disposal of individual real estate with amount exceeding the lower of NT$300 million or 20% of the capital stock: None
(vii) Related-party transactions for purchases and sales with amounts exceeding the lower of NT$100 million or 20% of the capital stock: None
(viii) Receivables from related parties with amounts exceeding the lower of NT$100 million or 20% of the capital stock: None
(ix) Trading in derivative instruments: None
(x) Business relationships and significant intercompany transactions: None
(b) Information on investees:

The following is the information on investees for the year 2023 (excluding information on investees in Mainland China):

Name of investor	Name of investee	Location	Main businesses and products	Original investment amount	Original investment amount	Balance as of December 31, 2023	Balance as of December 31, 2023	Balance as of December 31, 2023	Highest Percentage of ownership	Net income (losses) of investee	Share of profits/losses of investee	Note
				December 31, 2023	December 31, 2022	Shares (thousands)	Percentage of wnership	Carrying value
The Company `〃` `〃` `〃` `〃`	Worthy Textile Progiant Construction Chyang Sheng Vietnam Hong Sheng investment NICSing Tex	Taiwan Taiwan Vietnam Taiwan Taiwan	Investment company Entrust construction companies to build national housing, namely commercial buildings, leasing and selling business Printing and Dyeing and Finishing Investment company Printing and Dyeing and Finishing	778,461 167,200 223,523 (USD6,931 thousand dollar) - 4,800	638,461 167,200 223,523 (USD6,931 thousand dollar) 140,000 -	77,800 26,235 - - 480	% 100.00 % 83.68 % 18.69 % - % 48.00	788,904 538,253 101,267 - 4,292	% 100.00 % 83.68 % 18.69 % 100.00 % 48.00	90,221 138 (9,281) 7,144 (1,059)	90,221 115 (1,735) 7,144 (508)	Note 1 `〃` Note 1 and 3

(Continued)

CHYANG SHENG DYEING & FINSHING CO., LTD. AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements

Name of investor	Name of investee	Location	Main businesses and products	Original investment amount	Original investment amount	Balance as of December 31, 2023 Highest Shares (thousands) Percentage of wnership Carrying value Percentage of ownership	Balance as of December 31, 2023 Highest Shares (thousands) Percentage of wnership Carrying value Percentage of ownership	Balance as of December 31, 2023 Highest Shares (thousands) Percentage of wnership Carrying value Percentage of ownership	Balance as of December 31, 2023 Highest Shares (thousands) Percentage of wnership Carrying value Percentage of ownership	Net income (losses) of investee	Share of profits/losses of investee	Note
				December 31, 2023	December 31, 2022	Shares (thousands)	Percentage of wnership	Carrying value
Worthy Textile `〃` `〃`	Chyang Sheng Vietnam Treasure Star Sea Some International	Vietnam Samoa Taiwan	Printing and Dyeing and Finishing International trading business International trading business	167,362 (USD5,776 thousand dollar) 29,795 3,000	167,362 (USD5,776 thousand dollar) 29,795 3,000	- - 300	% 14.92 % 33.61 % 100.00	93,041 257,582 4,206	% 14.92 % 33.61 % 100.00	(9,281) 129,301 (274)	(1,384) 43,458 (274)	Note 2

Note 1: The aforementioned inter-company transactions have been eliminated in the consolidated financial statements. Note 2: Was held by Hong Sheng Investment. Hong Sheng Investment merged with Worthy Textile on December 1, 2023, with Worthy Textile being the sole existing company, acquiring the relevant investees of Hong Sheng Investment, Note 3: Including cash dividends of $ 3,550 thousand paid by the parent company Chyang Sheng.

(c) Information on investment in mainland China: None
(d) Major shareholders:

Shareholding Shareholder’s Name	Shares	Percentage
Shinkong Textile Co., Ltd.	35,170,576	% 20.29
Lin Jun Yao	11,400,000	% 6.57
Hong Sheng investment Co., Ltd.	8,874,795	% 5.12

(14) Segment information:

(a) General information

The reportable segments are the Group’ s strategic divisions. They offer different products and services, and are managed separately because they require different technology and marketing strategies.

The profit and loss of each operating department of the Group is measured based on gross profit and used as an evaluation of performance: the accounting policies used are the same as the summary of important accounting policies described in Note 4.

The 2023 and 2022 operating segment information of the Group are as follows:

Revenue from external customers Intersegment revenue Total Revenue Reportable segment profit or loss		2023	2023	Total 347,508 - 347,508 15,758
	Weaving and dyeing and finishing business $ 347,508 - $ 347,508 $ 15,758	Construction business - - - -	Reconciliation and elimination - - - -

(Continued)

CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

	2022	2022
Weaving and dyeing and finishing business $ 494,462 - $ 494,462 $ 75,083	Construction business 1,470 - 1,470 1,470	Reconciliation and elimination - - - -	Total 495,932 -
			495,932
			76,553

(b) Geographical information

In presenting information on the basis of geography, segment revenue is based on the geographical location of customers, and segment assets are all located in Asia.

Geographic area Asia	2023 $ 347,508	2022
		495,932

The details of the Group’s customers whose individual sales income accounted for more than 10% of the net operating revenues on the consolidated income statement for the years, 2023 and 2022 are as follow:

2023	2023	2022	2022
Amount $ 67,647 99,714 $ 167,361	Perecentage	Amount 109,181 169,200 278,381	Perecentage
	19 28		22 34
	47		56

AI assistant

CSG — Annual Report 2023

51821_rns_2023-11-10_c729599c-5445-406d-811f-88c78174dc06.pdf

CHYANG SHENG DYEING & FINSHING CO., LTD. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

Table of contents

Representation Letter

KPMG

Independent Auditors’ Report

Opinion

Basis for Opinion

Key Audit Matters

Description of the key audit matter:

Other Matter

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

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements

KPMG

Notes to Readers

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES

Consolidated Balance Sheets

December 31, 2023 and 2022

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES

Consolidated 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)

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES

Consolidated Statements of Changes in Equity

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the years ended December 31, 2023 and 2022

(Expressed in thousands of New Taiwan Dollars)

Notes to the Consolidated Financial Statements

For the years ended December 31, 2023 and 2022

(Expressed in thousands of New Taiwan Dollars, Unless Otherwise Specified)

(1) Company history

(2) Approval date and procedures of the consolidated financial statements:

(3) New standards, amendments and interpretations adopted:

CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(4) Summary of material accounting policies

(a) Statement of compliance

CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(c) Basis of consolidation

(ii) List of subsidiaries in the consolidated financial statements

CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(d) Foreign currencies

(ii) Foreign operations

CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(f) Cash and cash equivalents

(g) Financial instruments

(i) Financial assets

CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Financial liabilities and equity instruments

2) Equity instrument

3) Treasury shares

4) Financial liabilities

CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(h) Inventories

CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(i) Investment in associates

(j) Investment property

CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) As a leasor

(m) Impairment – non-derivative financial assets

CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(n) Revenue recognition

1) Sale of goods–real estate

2)

Service revenue

CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

3) Financing components

4) Contract costs

(o) Employee benefits

(i) Defined contribution plans

(ii) Defined benefit plans

CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

CHYANG SHENG DYEING & FINISHING CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

CSG Annual Report 2023