DE LICACY — Annual Report 2023

Nov 9, 2023

Stock Code:1464

De Licacy Industrial Co., Ltd.

Individual Financial Statement for the Years ended December 31, 2023 and 2022 and Independent Auditor’s Report

Address: No. 240 San Sher Li, Shin Shih District, Tainan City Tel: (06)599-2866

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§CONTENTS§

				Financial Report
	Items		Page	Note No
1.	Cover		1	-
2.	Directory		2	-
3.	Independent Auditor’s Report		3～5	-
4.	Individual Balance Sheets		6	-
5.	Individual Statements of Comprehensive Income		7～8	-
6.	Individual Statements of Changes in Equity		9	-
7.	Individual Statements of Cash Flows		10～11	-
8.	Notes to the Parent company only financial
	statements
	(1) Company history		12	1
	(2) The date and procedures for passing	the	12	2
	financial report
	(3) Application of newly issued and revised		12～13	3
	standards and interpretations
	(4) Summary explanation of major accounting		13～24	4
	policies
	(5) Major sources of uncertainty in major		24	5
	accounting judgments, estimates	and
	assumptions
	(6) Explanation of important accounting items		24～58,79	6～30
	(7) Related-party transactions		58～66	31
	(8) Pledged assets		66	32
	(9) Significant contingent liabilities	and	66	33
	unrecognized contractual commitments
	(10) Major disaster losses		-	-
	(11) Significant post-period events		-	-
	(12) Other matters		67	34
	(13) Matters disclosed in the notes
	1. Information about major transactions		60, 70～74	35
	2. Information about reinvestment business		68,75	35
	3. Mainland investment information		69, 76～77	35
	4. Major shareholder information		71,78	35
	(14) Departmental information		-	-
9.	The contents of statements of major accounting items		80～99

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ndependent Auditor’s Report

Dear the Board of Directors and Shareholders of De Licacy Industrial Co., Ltd.

Opinion

We have audited the accompanying financial statements of De Licacy Industrial Co., Ltd. (the “Company”), which comprise the parent company only balance sheets as of December 31, 2023 and 2022, and the parent company only statements of comprehensive income, parent company only statements of changes in equity and parent company only statements of cash flows for the years then ended, and the notes to the parent company only financial statements Individual statements , including a summary of significant accounting policies.

In our opinion, the accompanying parent company only financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2023 and 2022, and its financial performance and its cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis of Opinion

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

Key Audit Matter

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements for the year ended December 31, 2023. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. The descriptions of the key audit matter of the 2023 parent company only financial statements of the Company are as follows:

Authenticity of revenue recognition

Whether the Company’s operating revenue from specific customers occur that has a significant impact on the financial statement of the year ended December 31, 2023. It is considered that the revenue recognition inherently carries a higher risk of fraud and the management may be under pressure to achieve expected financial goals. The authenticity of revenue recognition from

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specific customers is listed as a key audit item. Please refer to the Parent company only financial statements Note 4(11) for the explanation of revenue recognition policy.

The accountants had performed major auditing procedures to the sales revenue from specific customers, which are as follows:

1. Understand and test the effectiveness of the design and implementation of the internal sales cycle control system.

2. Select samples from the sales details of the above-mentioned specific customers, verify their purchase orders, pro forma invoices, export declarations and other relevant documents to confirm whether the control rights of the goods had been truly transferred and the obligations had been performed, and check whether the sales objects and the payers were consistent to confirm the authenticity of the sales revenue.

Management’s and Governance’s Responsibility for the Individual Financial Statments

Management’s responsibility is to prepare parent company only financial statements in conformity with the Guidelines Governing the Preparation of Financial Reports by Securities Issuers and International Financial Reporting Standards, International Accounting Standards, and Interpretations and Interpretations issued by the Financial Supervisory Commission, and to maintain such internal control relevant to the preparation of parent company only financial statements as is necessary to enable the preparation of parent company only financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the parent company only financial statements, management’s responsibility also includes assessing the ability of the Company to continue as a going concern, the disclosure of related matters, and the adoption of the going concern basis of accounting, unless management intends to liquidate the Company or cease operations, or there is no practical alternative to liquidation or discontinuation of operations.

The governance unit (Audit Committee) of the Company has the responsibility for overseeing the financial reporting process.

Auditors’ Responsibilities for the Audit of the Financial Statements

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

As part of an audit performed in accordance with auditing standards, we exercise professional judgment and professional skepticism throughout the audit. We are also:

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

2. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.

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

4. 4 -

5. Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Company to cease to continue as a going concern.

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

7. We have obtained sufficient and appropriate auditing evidence of the financial information of the constituted entities of the Company to express our opinions on the parent company only financial statements. We are responsible for the guidance, supervision and execution of the Company's audits and we are responsible for providing auditing opinions with the Company.

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

Deloitte Touche Tohmatsu, Inc.

CPA: Hong-Ru Liao

CPA: Teng-Wei Wang

Financial Supervisory Commission Financial Supervisory Commission Authorized No. :Jin-Guan-Certificate No. Authorized No. :Jin-Guan-Certificate No. 0990031652 1100356048

Date: March 13, 2024

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De Licacy Industrial Co., Ltd.

Parent Company Only Balance Sheets

The Years Ended December 31, 2023 and 2022

C o d e 1100 1110 1121 1136 1150 1160 1170 1180 1200 1210 1220 130X 1410 1470 11XX 1517 1535 1550 1600 1755 1840 1920 1915 1975 15XX 1XXX C o d e 2100 2110 2120 2150 2160 2170 2180 2200 2220 2230 2280 2313 2322 2365 2399 21XX 2541 2570 2580 2630 2645 25XX 2XXX 3110 3200 3310 3320 3350 3300 3400 3XXX	Assets Current assets Cash (Note 4 and 6) Financial assets at fair value through profit or loss-current (Note 4 and 7) Financial assets at fair value through other comprehensive income-current (Note 4 and 8) Financial assets at amortized cost-current (Note 4, 9 and 32) Notes receivable (Note 4, 10 and 24) Notes receivable-related parties (Note 4, 10, 24 and 31) Net accounts receivable (Note 4, 10 and 24) Accounts receivable-related parties (Note 4, 10, 24 and 31) Other receivables (Note 4) Other receivables-related parties (Note 4 and 31) Current income tax assets (Note 4 and 26) Inventory (Note 4 and 11) Prepayments (Note 15) Other current assets (Note 16) Total current assets Non-current assets Financial assets at fair value through other comprehensive income-non-current (Note 4 and 8) Financial assets at amortized cost-non-current (Note 4, 9 and 32) Investments accounted for using equity method (Note 4 and 12) Property, plant and equipment (Note 4, 13, 31 and 32) Right-of-use assets (Note 4, 14, and 31) Deferred tax assets (Note 4 and 26) Refundable deposits (Note 4) Prepayment for equipment Net confirmed welfare assets (Note 4 and 22) Total non-current assets Total assets Liabilities and Equity Current liabilities Short-term loans (Note 17 and 32) Short-term notes payable (Note 17) Financial liabilities measured at fair value through profit or loss-current (Note 4 and 7) Notes payable (Note 18) Notes payable-related parties (Note 31) Accounts payable (Note 18) Accounts payable-related parties (Note 31) Other payables (Note 19) Other payables-related parties (Note 31) Current tax liabilities (Note 4 and 26) Lease liabilities-current (Note 4, 14, and 31) Deferred income-current (Note 4 and 20) Long-term loans due within one year (Note 17 and 32) Refund liabilities-current (Note 21) Other current liabilities Total current liabilities Non-current liabilities Long-term bank loans (Note 17 and 32) Deferred tax liabilities (Note 4 and 26) Lease liabilities-non-current (Note 4, 14, and 31) Deferred income-non-current (Note 4 and 20) Deposits received Total non-current liabilities Total liabilities Equity (Note 23) Common stocks Capital surplus Retained earnings Legal reserve Special reserve Unappropriated retained earnings Total retained earnings Other equity Total equity Total labilities and equity		December 31, 2023	December 31, 2023	％ 3 - - 7 - - 3 1 - - - 12 - - 26 - - 65 7 - 2 - - - 74 100 18 5 - 1 1 1 1 1 6 - - - 5 - - 39 19 - - - - 19 58 34 5 1 3 2 6 3) 42 100	(In Thousands of New Taiwan Dollars) December 31, 2022	(In Thousands of New Taiwan Dollars) December 31, 2022	(In Thousands of New Taiwan Dollars) December 31, 2022	(In Thousands of New Taiwan Dollars) December 31, 2022
		A	m o u n t $ 321,115 13,826 302 801,074 15,199 29,985 330,652 123,791 1,518 7,499 3,112 1,431,596 44,016 24,244 3,147,929 - 14,079 7,738,757 765,912 12,627 155,325 10,186 2,304 32,706 8,731,896 $ 11,879,825 $ 2,158,228 559,423 8,919 106,709 53,591 55,580 97,853 166,856 685,010 - 10,340 6,312 622,838 4,678 42,468 4,578,805 2,246,420 26,715 2,438 10,228 10,208 2,296,009 6,874,814 4,076,396 581,654 176,258 327,892 255,333 759,483 412,522) 5,005,011 $ 11,879,825			A	m o u n t $ 166,036 34,370 1,112 1,400,045 22,902 47,182 463,133 52,738 2,972 20,410 5,674 1,745,281 29,752 45,340 4,036,947 20,846 1,294,524 7,871,400 831,128 110,291 191,405 11,862 16,336 28,188 10,375,980 $ 14,412,927 $ 2,897,322 709,621 - 125,469 77,602 97,836 304,244 236,074 262,314 2,557 55,501 1,359 276,741 4,340 60,002 5,110,982 4,020,027 46,204 54,925 4,474 7,201 4,132,831 9,243,813 3,845,657 581,654 138,909 557,298 373,488 1,069,695 327,892) 5,169,114 $ 14,412,927		％
		(		(		(		(	1 - - 10 - 1 3 1 - - - 12 - - 28 - 9 55 6 1 1 - - - 72 100 20 5 - 1 - 1 2 2 2 - - - 2 - - 35 28 - 1 - - 29 64 27 4 1 4 2 7 2) 36 100

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

Chairman: Chia-Min Yeh

Manager: Yi-Nung Yu

Accounting Manager: Hsiu-Feng Huang

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De Licacy Industrial Co., Ltd.

Parent Company Only Statements of Comprehensive Income

For the Years Ended December 31, 2023 and 2022

(In Thousands of New Taiwan Dollars)

(Except Earnings Per Share)

Code Operating revenue (Note 4, 24 and 31) 4100 Net sales revenue 4800 Other operating revenue 4000 Total operating revenue Operating costs (Note 11, 22, 25 and 31) 5110 Cost of goods sold 5900 Gross profit 5910 Unrealized losses of subsidiaries and associates (Note 4) 5920 Realized losses of subsidiaries and associates (Note 4) 5950 Gross realized operating revenue Operating expenses (Note 10, 22, 25 and 31) 6100 Marketing expenses 6200 General and administrative expenses 6300 Research and development expenses 6450 Expected credit loss 6000 Total operating expenses 6500 Net other income and expenses (Note 25 and 31) 6900 Net operating loss Non-operating revenue and expenses (Note 4, 7, 25 and 31) 7100 Interest income 7010 Other income 7020 Other gains and losses 7050 Finance costs 7070 Share of profit or loss of subsidiaries and associates accounted for using equity method 7000 Total non-operating revenue and expenses 7900 Net profit before tax		2023		％ 99 1 100 91 9 - - 9 5 3 3 - 11 - 2) 2 3 1 4 ) 3 5 3		2022
		Amount $ 3,596,763 33,445 3,630,208 3,287,434 342,774 6,361 6,361) 342,774 171,091 110,798 102,387 22,709 406,985 5,365) 69,576) 82,005 114,905 21,129 132,020 ) 92,745 178,764 109,188				Amount $ 4,332,636 24,379 4,357,015 3,969,442 387,573 6,361 6,364) 387,570 281,424 166,463 103,425 22,339 573,651 1,815 184,266) 31,427 64,328 374,551 107,623 ) 217,897 580,580 396,314		％
	( ( ( (		( (		( ( (		( (	99 1 100 91 9 - - 9 6 4 2 1 13 - 4) 1 1 9 3 ) 5 13 9

(Continued)

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(continued from the previous page)

(continued from the previous page)
Code 7950 Income tax expenses (Note 4 and 26) 8200 Net profit for the year Other comprehensive income, net 8310 Items not reclassified to profit or loss: 8311 Determine the remeasurement of the benefit plan (Note 22) 8316 Unrealized appraisal gains and losses of equity instrument investments measured at fair value through other comprehensive income (Note 23) 8331 Remeasurements of confirmed welfare plans of subsidiaries and associates accounted for using equity method 8336 Unrealized gains or losses of subsidiaries and associates measured at fair value through other comprehensive income accounted for using equity method (Note 23) 8349 Income tax related to items not reclassified (Note 26) Items that may be reclassified to profit or loss in the future: 8361 Exchange differences on conversion of financial statements of foreign operations (Note 23) 8380 Share of other comprehensive income of subsidiaries and associates accounted for using equity method (Note 23) 8399 Income tax related to items that may be reclassified (Note 23 and 26) 8360 8300 Total other comprehensive income for the year (net after tax) 8500 Total comprehensive income for the year Earnings per share (Note 27) 9710 Basic 9810 Diluted		2023		％ 1 2 - - - 1 - 1 4 ) - 1 3) 2) -		2022
		Amount $ 56,560 52,628 755 4,809 309 35,816 151) 41,538 142,325 ) 9,416 28,465 104,444) 62,906) $ 10,278) $ 0.13 $ 0.13				Amount $ 29,256 367,058 6,278 9,288 ) 2,083 30,040 ) 1,256) 32,223) 326,307 6,540 67,705) 265,142 232,919 $ 599,977 $ 0.90 $ 0.90		％
	( ( ( ( (		( ( (		( ( ( ( (		( ( (	- 9 - - - 1 ) - 1) 8 - 2) 6 5 14

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

Chairman: Chia-Min Yeh Manager: Yi-Nung Yu Accounting Manager: Hsiu-Feng Huang

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De Licacy Industrial Co., Ltd.

Parent Company Only Statements of Changes in Equity For the Years Ended December 31, 2023 and 2022

(In Thousands of New Taiwan Dollars) (Except Dividends Per Share)

Code A1 Balance on 1 January 2022 Appropriations of 2021 earnings (Note 23) B1 Legal reserve B3 Special reserve C7 Changes in equity of investment in associates accounted for using equity method C15 Cash dividends from capital surplus to shareholders－ $0.25 per share(Note 23) D1 Net income for the year ended December 31, 2022 D3 Other comprehensive profit (loss) after tax for the year ended December 31, 2022 D5 Total comprehensive profit (loss) after tax for the year ended December 31, 2022 M3 Disposal of subsidiaries (Note 23) M7 Changes in ownership of subsidiaries Q1 Disposal of equity instruments at fair value through other comprehensive income (Note 23) Z1 Balance on December 31, 2022 Appropriations of 2022 earnings (Note 23) B1 Legal reserve B3 Special reserve B5 Stock dividends to shareholders of the Company – $0.4 per share B9 Cash dividends to shareholders of the Company – $0.6 per share C7 Changes in equity of investment in associates accounted for using equity method D1 Net income for the year ended December 31, 2023 D3 Other comprehensive profit (loss) after tax for the year ended December 31, 2023 D5 Total comprehensive profit (loss) after tax for the year ended December 31, 2023 Q1 Disposal of equity instruments at fair value through other comprehensive income (Note 23) Z1 Balance on December 31, 2023		Commonstocks $ 3,845,657 - - - - - - - - - - 3,845,657 - - 230,739 - - - - - - $ 4,076,396		Capitalsurplus $ 676,850 - - 946 96,142) - - - - - - 581,654 - - - - - - - - - $ 581,654			Retained earnings	Retained earnings	Unappropriated retained earnings $ 172,602 ( 17,260) ( 155,342) ( 153) - 367,058 7,105 374,163 - ( 2,169) 1,647 373,488 ( 37,349) 229,406 ( 230,739) ( 153,826) 1 52,628 913 53,541 20,811 $ 255,333		Other equity		Total $ 564,277) - - - - - 225,814 225,814 12,218 - 1,647) 327,892) - - - - - - 63,819) 63,819) 20,811) $ 412,522)		Grand total
						Legal reserve $ 121,649 17,260 - - - - - - - - - 138,909 37,349 - - - - - - - - $ 176,258		Special reserve $ 401,956 - 155,342 - - - - - - - - 557,298 - 229,406) - - - - - - - $ 327,892		Exchange differences on conversion of financial statements of foreignoperations ($ 572,021) - - - - - 265,142 265,142 12,218 - - ( 294,661) - - - - - - ( 104,444) ( 104,444) - ($ 399,105)	Unrealized gains or losses on financial assets at fair value through other comprehensiveincome $ 7,744 - - - - - ( 39,328) ( 39,328) - - ( 1,647) ( 33,231) - - - - - - 40,625 40,625 ( 20,811) ($ 13,417)
			(				(		( ( ( ( ( ( (	( ( ( ( (	( ( ( ( ( (	( ( ( ( ( ( (		( ( ( ( (	$ 4,654,437 - - 793 96,142) 367,058 232,919 599,977 12,218 2,169) - 5,169,114 - - - 153,826) 1 52,628 62,906) 10,278) - $ 5,005,011

Chairman: Chia-Min Yeh

The accompanying notes are an integral part of the parent company only financial statements. Manager: Yi-Nung Yu

Accounting Manager: Hsiu-Feng Huang

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De Licacy Industrial Co., Ltd.

Parent Company Only Statements of Cash Flows

For the Years Ended December 31, 2023 and 2022

(In Thousands of New Taiwan Dollars)

Code CASH FLOWS FROM OPERATING ACTIVITIES A10000 Income before tax Adjustments for: A20010 Revenues/Expenses A20100 Depreciation A20300 Expected credit loss A20400 Net loss (gain) on financial assets and liabilities at fair value through profit or loss A20900 Finance costs A21200 Interest income A21300 Dividend income A22300 Share of profit or loss of subsidiaries and associates accounted for using equity method A22500 Loss (gain) on disposal of property, plant and equipment A23700 Inventory valuation and obsolescence losses A23900 Unrealized losses of subsidiaries and associates A24000 Realized losses of subsidiaries and associates A24100 Unrealized foreign exchange losses (profits) A24500 Gains from lease amendment A29900 Allowance for refund liability A30000 Changes in operating assets and liabilities A31130 Notes receivable A31140 Notes receivable-related parties A31150 Accounts receivable A31160 Accounts receivable-related parties A31180 Other receivables A31190 Other receivables-related parties A31200 Inventory A31230 Prepayments A31240 Other current assets A32130 Notes payable A32140 Notes payable-related parties A32150 Accounts payable A32160 Accounts payable-related parties A32180 Other payables A32190 Other payables-related parties A32210 Deferred income-current and non- current A32230 Other current liabilities A32240 Net defined benefit assets-non-current A33000 Cash generated from operations A33100 Interest received A33200 Dividends received A33300 Interest paid A33500 Income tax paid AAAA Net cash generated from operating activities		2023 $ 109,188 156,491 22,709 14,415 132,020 82,005 ) 60 ) 92,745 ) 5,365 - 6,361 ) 6,361 85,922 4,187 ) 338 7,703 17,197 109,772 71,053 ) 2,233 12,911 313,685 14,264 ) 21,096 24,127 ) 24,011 ) 42,256 ) 206,391 ) 68,886 ) 10,086 ) 10,707 17,534 ) 3,763) 360,384 82,005 46,075 132,710 ) 11,650) 344,104		2022
	( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( (		( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( (	$ 396,314 132,519 22,339 2,821 ) 107,623 31,427 ) 210 ) 217,897 ) 1,815 ) 122,283 6,361 ) 6,364 288,838 ) - 1,496 70,071 5,792 12,418 ) 35,855 12,501 91 ) 298,617 ) 7,656 411 ) 9,565 ) 20,315 13,075 ) 160,110 65,655 21,533 ) 589 ) 566 ) 10,387) 250,272 33,527 5,849 104,317 ) 38) 185,293

(Continued)

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(continued from the previous page)

Code Cash flow from investing activities B00040 Acquisition of financial assets at amortized cost B00060 Financial assets at amortized cost repayment of principal upon maturity B00100 Acquisition of financial assets at fair value through profit or loss B00200 Disposal of financial assets at fair value through profit or loss B00020 Sales of financial assets at fair value through other comprehensive income B01800 Acquisition of investments accounted for using equity method B02400 Refund of paid-up capital from capital reduction of subsidiaries B02700 Acquisition of property, plant and equipment B02800 Proceeds from disposal of property, plant and equipment B03700 Increase in refundable deposits B03800 Decrease in refundable deposits B04300 Increase in other receivables-related parties B04400 Decrease in other receivables-related parties B07100 Increase in prepayment for equipment BBBB Net cash generated from investing activities Cash flows from financing C00100 Increase in short-term loans C00200 Decrease in short-term loans C00500 Increase in short-term notes payable C00600 Decrease in short-term notes payable C01600 Payments of finance lease liabilities C01700 Repayment of long-term debt C03000 Increase in deposits received C03100 Decrease in deposits received C03700 Increase in other payables-related parties C03800 Decrease in other payables-related parties C04020 Repayment of the principal portion of lease liabilities C04500 Cash dividends C05400 Acquisition of subsidiaries equity CCCC Net cash generated from (used in) financing activities EEEE NET INCREASE (DECREASE) IN CASH E00100 CASH AT THE BEGINNING OF THE YEAR E00200 CASH AT THE END OF THE YEAR		2023 $ 4,865,378 ) 6,643,003 11,071 ) 26,119 25,686 - 82,590 31,598 ) 10,434 57 ) 1,733 80,000 ) 80,000 2,205) 1,879,256 14,071,331 14,810,425 ) 16,476,442 16,626,640 ) 3,375,000 4,801,552 ) 22,638 19,631 ) 800,135 354,435 ) 47,318 ) 153,826 ) - 2,068,281) 155,079 166,036 $ 321,115		2022
	( ( ( ( ( ( ( ( ( ( ( ( ( (		( ( ( ( ( ( ( ( ( ( ( ( ( ( ( (	$ 9,232,853 ) 9,916,760 22,755 ) - - 32,778 ) 157,350 109,826 ) 2,018 1,800 ) 226 211,244 ) 371,788 16,236) 820,650 17,076,796 18,219,127 ) 9,478,746 9,478,636 ) 3,950,000 3,697,997 ) 5,652 229 ) 245,680 - 14,398 ) 96,142 ) 308,819) 1,058,474) 52,531 ) 218,567 $ 166,036

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

Chairman: Chia-Min Yeh Manager: Yi-Nung Yu Accounting Manager: Hsiu-Feng Huang

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De Licacy Industrial Co., Ltd.

Notes to the Parent company only financial statements

For the Years Ended December 31, 2023 and 2022

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

1. Company history

De Licacy Industrial Co., Ltd. (the “Company”) was incorporated in July 1982 and engaged in manufacturing, dyeing and finishing, and trading of textiles.

The Company’s stock has been listed and traded on the Taiwan Stock Exchange since January 1997.

The currency used in the parent company only financial statements is New Taiwan Dollars, which is the functional currency of the Company.

1. The date and procedures for passing the financial report

The parent company only financial statements were approved by the Company’s board of directors on March 13, 2024.

1. Application of newly issued and revised standards and interpretations

2. (1) Initial application of the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), Interpretations of (IFRIC), and Interpretation announcement (SIC), (collectively, the “IFRS accounting standards”) endorsed and issued into effect by the Financial Supervisory Commission (FSC).

   • The application of amendments to the IFRS accounting standards recognized and issued by the FSC did not have a significant impact on the Company and the entities controlled by the Company’s (collectively, the “Group”) accounting policies.

3. (2) The IFRS accounting standards endorsed by the FSC for application starting from 2024

Effective Date Issued by New/Revised/Amended Standards and Interpretations IASB （ Note 1 ） Amendments to IFRS 16 “Lease Liability in Sale and January 1, 2024 （ Note 2 ） Leaseback”

Amendments to IAS 1 “Classification of Liabilities as January 1, 2024 Current or Non-current”

Amendments to IAS 1 “Non-current Liabilities with January 1, 2024 Covenants” Amendments to IAS 7 and IFRS 7 “Supplier Finance January 1, 2024 （ Note 3 ） Arrangements”

• Note 1: Unless stated otherwise, the above new, amended, or revised IFRSs are effective for annual periods beginning on or after their respective effective dates.

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

• Note 3: Part of the disclosure regulations is exempt at first-time adoption of the modification. As of the approval date of the financial statements, the Company evaluates that

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• the application of aforementioned standards and interpretations will not have significant impact on the Company’s financial position and financial performance.

• (3) New IFRS accounting standards in issue but not yet endorsed and issued into effect by the FSC

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

• Note 1: Unless stated otherwise, the above new, amended or revised IFRSs are effective for annual periods beginning on or after their respective effective dates.

• Note 2: The amendments apply to annual reporting periods beginning on or after 1 January 2025. The consolidated company shall recognize any effect of initially applying the amendments as an adjustment to the opening balance of retained earnings. When the consolidated company uses a presentation currency other than its functional currency, the consolidated company shall recognize any effect of initially applying the amendments as an adjustment to the exchange differences in the conversion of the financial statements of foreign operations under equity at the first-adoption date.

As of the approval date of the financial statements, the Company continues to evaluate the impact of the amendments to the other standards and interpretations on the financial status and financial performance; the relevant impact will be disclosed upon completion of the assessment.

1. Summary explanation of major accounting policies

2. (1) Statement of compliance The parent company only financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IFRS accounting standards as endorsed and issued into effect by the FSC.

3. (2) Basis of preparation

The parent company only financial statements have been prepared on the historical cost basis, except for financial instruments that are measured at fair value and net defined benefit assets recognized at the present value of the defined benefit obligation less the fair value of plan assets.

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

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• Level 1 input is quoted prices (unadjusted) in active markets for identical assets or liabilities.

• Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for an asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and

• Level 3 inputs are unobservable inputs for an asset or liability.

In the preparation of parent company only financial statements, the Company applies the equity method to investment subsidiaries and related enterprises. In order to make the annual profit or loss, other comprehensive profit or loss and equity of the parent company only financial statements the same as the annual profit or loss, other comprehensive profit or loss and equity of the Company attributable to the owners of the Company in the parent company only financial statements of the Company, a number of accounting differences on an individual and consolidated basis are adjusted for the “Investment using the equity method”, “Profit or loss share of the subsidiaries and related companies using the equity method” and related equity items.

• (3) Classification of current and non-current assets and liabilities

  • Current assets include:

• Assets held primarily for the purpose of trading;

• Assets expected to be realized within 12 months after the reporting period; and

• Cash unless the asset is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period. Current liabilities include:

• Liabilities held primarily for the purpose of trading;

• Liabilities due to be settled within 12 months after the reporting period; and

• Liabilities for which the Company does not have an unconditional right to defer settlement for at least 12 months after the reporting period.

Assets and liabilities that are not classified as current are classified as noncurrent.

• (4) Foreign currency

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

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

Non-monetary items measured at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when fair value was determined. Exchange differences arising from the retranslation of nonmonetary items are included in profit or loss for the period except for exchange

• 14 -

differences arising from the retranslation of non-monetary items in respect of which gain and losses are recognized directly in other comprehensive income; in which cases, the exchange differences are also recognized directly in other comprehensive income.

Non-monetary items that are measured at historical cost in a foreign currency are translated using the exchange rate at the date of the transaction (i.e., not recalculated).

In the preparation of parent company only financial statements, the assets and liabilities of foreign operating institutions (including subsidiaries and associates in countries in which they operate or in currencies different from the Company) are converted to NTD at the exchange rate of each balance sheet date. Income and expense loss items are converted at the average exchange rate for the period and the resulting conversion difference is recognized as other comprehensive profit or loss.

(5)

(6)

Inventory

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

The Company uses the equity method to account for its investment in subsidiaries.

A subsidiary is an entity over which the Company has control.

Under the equity method, the original investment is recognized at cost, and the carrying amount of the investment after the acquisition date increases or decreases in accordance with the Company’s share of earnings and other comprehensive income or loss of the subsidiary and profit distribution. In addition, changes in the Company’s other equity interests in subsidiaries are recognized in proportion to the Company’s ownership interest.

Changes in the Company’s ownership interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions. The difference between the carrying amount of the investment and the fair value of the consideration paid or received is recognized directly in equity.

When the Company’s share of loss in a subsidiary equals or exceeds its interest in the subsidiary (including the carrying amount of the subsidiary under the equity method and other long-term interests that are substantially part of the Company’s net investment in the subsidiary), the loss continues to be recognized in proportion to the Company’s ownership.

When control over a subsidiary is lost, the Company measures its remaining investment in the former subsidiary at fair value at the date of loss of control. The difference between the fair value of the remaining investment and the

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carrying amount of the investment at the date of loss of control, if any, is recognized in profit or loss for the current period. In addition, all amounts recognized in other comprehensive income or loss related to the subsidiary are accounted for on the same basis as if the Company had disposed of the related assets or liabilities directly.

(7)

Unrealized gains or losses on downstream transactions with subsidiaries are eliminated in the parent company only financial statements. Gains or losses resulting from counter-current and side-stream transactions with subsidiaries are recognized in the parent company only financial statements only to the extent that they are not related to the Company’s interest in the subsidiary. Investment in associates

An associate is an enterprise over which the Company has significant influence but which is not a subsidiary or a joint venture.

The Company uses the equity method for its investments in associates. Under the equity method, investments in associates are initially recognized at cost, and the carrying amount of such investments is adjusted for any subsequent increases or decreases in the Company’s share of income or loss of the associates and other comprehensive income or loss and profit distribution. In addition, changes in equity in associates are recognized in proportion to the Company’s ownership interest.

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

Gains or losses resulting from transactions with associates are recognized in the financial statements only to the extent that they are not related to the Company’s interest in the associates.

(8) Property, plant and equipment

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

Property, plant and equipment in the course of construction are measured at cost. Cost includes professional fees and borrowing costs eligible for capitalization. Samples produced by these assets to test whether these assets can

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operate normally before the status for intended use are measured at the lower of cost or net realizable value, and their sales price and costs are recognized in profit or loss. Such assets are depreciated and classified to the appropriate categories of property, plant and equipment when completed and ready for their intended use.

Except for freehold land which is not depreciated, the depreciation of property, plant and equipment is recognized using the straight-line method. Each significant part is depreciated separately. If their respective lease terms are shorter than their useful lives, such assets are depreciated over their lease terms. The estimated useful lives, residual values and depreciation methods are reviewed at the end of each reporting period, with the effects of any changes in accounting estimate values accounted for on a prospective basis.

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

(9)

Impairment of property, plant and equipment and right-of-use assets

The Company assesses at each balance sheet date whether there is any indication that property, plant and equipment and right-of-use assets may be impaired. If any indication of impairment exists, the recoverable amount of the asset is estimated. If the recoverable amount of an individual asset cannot be estimated, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. Shared assets are allocated to the smallest group of cash-generating units on a reasonably consistent basis.

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

When the impairment loss is subsequently reversed, the carrying amount of the asset or cash-generating unit is increased to the revised recoverable amount, provided that the increased carrying amount does not exceed the carrying amount (net of depreciation) that would have been determined had the impairment loss not been recognized in prior years. Reversal of impairment loss is recognized in profit or loss.

(10) Financial instruments

Financial assets and financial liabilities are recognized in the individual balance sheets when the Company becomes a party to the contractual provisions of the instrument.

Financial assets and financial liabilities that are not measured at fair value through profit or loss are measured at fair value plus transaction costs that are directly attributable to the acquisition or issuance of the financial assets or financial liabilities when the financial assets or financial liabilities are recognized initially. Transaction costs directly attributable to the acquisition or

• 17 -

issuance of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in profit or loss.

1. Financial assets

Regular transactions of financial assets are recognized and derecognized using trade date accounting.

• (1) Types of measurement

The types of financial assets held by the Company are financial assets at fair value through profit or loss, financial assets measured at amortized cost and investments in equity instruments measured at fair value through other comprehensive income.

• A. Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss are financial assets at fair value through profit or loss on a mandatory basis. Financial assets at fair value through profit or loss include investments in equity instruments that are not designated as at fair value through other comprehensive income.

Financial assets at fair value through profit or loss are measured at fair value with dividends and interest recognized in other income and interest income, respectively, and gains or losses arising from remeasurement recognized in other gains and losses. For the determination of fair value, please refer to Note 30.

• B. Financial assets at amortized cost

Financial assets are classified as financial assets carried at amortized cost if both of the following conditions are met:

• a. hey are held within an operating model whose objective is to hold the financial assets to collect the contractual cash flows; and

• b. the contractual terms give rise to cash flows at a specific date, which are solely payments of principal and interest on the principal amount outstanding.

Financial assets carried at amortized cost (including cash, receivables and refundable deposits carried at amortized cost) are measured at amortized cost using the effective interest method to determine the total carrying amount less any impairment loss after initial recognition, with any foreign currency exchange gain or loss recognized in profit or loss.

Interest income is calculated by multiplying the effective interest rate by the total carrying amount of the financial asset.

Credit-impaired financial assets are those for which the issuer or the debtor has experienced significant financial difficulties, defaulted, it is probable that the debtor will declare bankruptcy or other financial reorganization, or the active market for the financial assets has disappeared due to financial

• 18 -

difficulties.

• C. Investments in equity instruments at fair value through other comprehensive income (“FVTOCI”)

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

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

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

• (2) Impairment of financial assets

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

An allowance for impairment is recognized on accounts receivable based on the expected credit loss over the period of the receivable. If there is no significant increase in credit risk, an allowance for loss is recognized on the basis of expected credit losses over 12 months, and if there is a significant increase, an allowance for loss is recognized on the basis of expected credit losses over the remaining period.

Expected credit losses are weighted average credit losses based on the risk of default, 12-month expected credit losses represent expected credit losses arising from possible defaults within 12 months after the reporting date and expected credit losses over the life of the financial instrument represent expected credit losses arising from all possible defaults during the expected life of the financial instrument.

For internal credit risk management purposes, the Company determines that a default on a financial asset has occurred when internal or external information indicates that the debtor is unlikely to settle the obligation, without regard to the collateral held.

An impairment loss on a financial asset is recognized by

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reducing the carrying amount of the financial asset through an allowance account.

• (3) Derecognition of financial assets

Financial assets are derecognized only when the Company's contractual rights to the cash flows from the financial assets have lapsed or when the financial assets have been transferred and substantially all the risks and rewards of ownership of the assets have been transferred to other enterprises.

When a financial asset is derecognized in its entirety at amortized cost, the difference between the carrying amount and the consideration received is recognized in profit or loss. When equity instruments measured at fair value through other comprehensive income are derecognized as a whole, the cumulative gain or loss is transferred directly to retained earnings and is not reclassified to profit or loss.

1. Financial liabilities

2. (1) Subsequent measurement

All of the Company's financial liabilities are measured at amortized cost using the effective interest method.

• (2) Derecognition of financial liabilities

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

1. Derivative instruments

2. Derivatives are exchange rate swaps entered into by the Company to

3. manage the Company's exposure to exchange rate risk.

Derivatives are initially recognized at fair value at the time the derivative contracts are entered into and subsequently remeasured at fair value at the balance sheet date, with gains or losses arising from subsequent measurements recognized directly in profit or loss. When the fair value of a derivative is positive, it is recorded as a financial asset; when the fair value is negative, it is recorded as a financial liability.

• (11) Revenue recognition

After recognizing performance obligations under customer contracts, the Company allocates the transaction price to each performance obligation and recognizes revenue when each performance obligation is satisfied. Merchandise Sales Revenue

Revenue from merchandise sales is derived from sales of long- and shortstaple fibers. The Company recognizes revenue and accounts receivable at the point when the customer has the right to set the price and use of the products and has the primary responsibility to re-sell the products, as well as the risk of obsolescence. Receipts in advance are recognized as contract liabilities when the

• 20 -

trade term of merchandise is fulfilled or before the shipment.

Therefore, the Company does not recognize revenue at the time of material removal.

(12) Leases

The Company assesses whether the contract is a lease at the contract inception date.

1. The Company is the lessor

A lease is classified as a finance lease when the terms of the lease transfer substantially all the risks and rewards incidental to ownership of the asset to the lessee. All other leases are classified as operating leases.

Lease payments under operating leases are recognized as income on a straight-line basis over the term of the relevant lease. The original direct costs incurred in acquiring an operating lease are added to the carrying amount of the underlying asset and recognized as an expense over the lease term on a straight-line basis. The lease negotiations with the lessees shall be accounted for as a new lease from the effective date of the lease modification.

1. The Company is the lessee

Right-of-use assets and lease liabilities are recognized at the lease commencement date for all leases, except for leases of low-value subject assets to which recognition exemptions apply and short-term leases where lease payments are recognized as expenses on a straight-line basis over the lease term.

Right-of-use assets are measured initially at cost (which is the original measurement of the lease liability) and subsequently measured at cost less accumulated depreciation, with adjustments for remeasurement of the lease liability. Right-of-use assets are presented separately in the individual balance sheets.

Right-of-use assets are depreciated on a straight-line basis from the commencement date of the lease to the earlier of the end of the useful life or the end of the lease term.

Lease liabilities are measured initially at the present value of the lease payments (which are fixed payments). If the interest rate implied by the lease is readily determinable, the lease payments are discounted using that rate. If the interest rate is not readily determinable, the lessee's incremental borrowing rate is used.

Subsequently, lease liabilities are measured at amortized cost using the effective interest method, and interest expense is allocated over the lease term. If a change in the lease term results in a change in future lease payments, the Company remeasures the lease liability and adjusts the right-of-use asset accordingly, but if the carrying amount of the right-ofuse asset is reduced to zero, the remaining remeasurement amount is

• 21 -

recognized in profit or loss. Lease liabilities are presented separately in the individual balance sheets.

• (13) Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of an eligible asset are included as part of the cost of the asset until substantially all activities necessary to bring the asset to its intended use or sale condition have been completed.

Investment income earned on specific borrowings that are temporarily invested prior to the incurrence of qualifying capital expenditures is deducted from the cost of borrowings eligible for capitalization.

• (14)

Except as described above, all other borrowing costs are recognized in profit or loss in the year in which they are incurred. Government grants

Government grants are recognized only when there is reasonable assurance that the Company will comply with the conditions attached to the government grant and that the grant will be received.

Government grants related to revenue are recognized in other income on a systematic basis over the period in which they are intended to compensate the Company for the related costs recognized as expenses. Government grants that are contingent upon the Company's acquisition, construction or other acquisition of non-current assets are recognized as deferred revenue and are transferred to profit or loss on a reasonable and systematic basis over the useful lives of the related assets.

Government grants are recognized in profit or loss in the period in which they become receivable if they are intended to compensate for expenses or losses already incurred or to provide immediate financial support to the Company and have no future related costs.

• (15) Employee benefits

• Short-term employee benefits

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

1. Retirement benefits

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

Defined benefit costs (including service cost, net interest and remeasurement) under defined benefit retirement benefit plans are determined using the projected unit credit method. Service cost (which is current service cost) and net interest on the net defined benefit assets are recognized as employee benefits expense in the period in which they occur. Remeasurement, comprising actuarial gains and losses and the return on plan assets (excluding interest), is recognized in other comprehensive

• 22 -

income in the period in which it occurs. Remeasurement recognized in other comprehensive income is reflected immediately in retained earnings and will not be reclassified to profit or loss.

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

(16) Taxation

Income tax expense is the sum of current income tax and deferred income tax.

1. Current tax

Current income (loss) is determined by the regulations of each jurisdiction in which the Company files income tax returns and is used to calculate the amount of tax payable (recoverable).

Income tax on undistributed earnings is recognized in the year when the shareholders' meeting is held.

Adjustments to prior years' income tax payable are included in the current period’s income tax.

1. Deferred tax

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

Deferred tax liabilities are generally recognized for all taxable temporary differences, while deferred income tax assets are recognized to the extent that it is probable that taxable profit will be available against which the temporary differences and loss carryforwards can be utilized.

Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries and associates, except where the Company can control the timing of the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets are recognized for deductible temporary differences associated with such investments only to the extent that it is probable that sufficient taxable income will be available to allow the temporary differences to be realized and to the extent that reversal is expected in the foreseeable future.

The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable income will be available to allow all or part of the asset to be recovered. Deferred tax assets are reviewed at each balance sheet date and the carrying amount is increased to the extent that it is more likely than not that sufficient tax assets will be available to allow recovery of all or part of the assets.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the liability is settled or the asset is realized, based on tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date. The measurement of deferred tax liabilities and assets

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reflects the tax consequences of the manner in which the Company expects to recover or settle the carrying amounts of its assets and liabilities at the balance sheet date.

1. Current and deferred taxes

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

1. Major sources of uncertainty in major accounting judgments, estimates and assumptions

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

When developing significant accounting estimates, the Company considers the effects of inflation and market interest rate fluctuations when making its critical accounting estimates, including cash flow estimates, growth rate, discount rate and profitability, etc. The estimates and underlying assumptions are reviewed on an ongoing basis.

6.

7.

Cash

Cash	Cash
December 31,2023 Cash on hand, turnover $ 410 Bank checks and demand deposits 320,705 $ 321,115 Financial instruments at fair value through profit and loss December 31, 2023 Financial assets-current Mandatorily measured at fair value through profit or loss Derivative instruments (not designated as hedge) Exchange rate swap contracts $ - Non-derivative financial assets Fund beneficiary certificates 13,826 $ 13,826 Financial liabilities-current Held for trading Derivative instruments (not designated as hedge) Exchange rate swap contracts $ 8,919		December 31,2022
		$ 410 165,626 $ 166,036 December 31, 2022
Financial assets-current Mandatorily measured at fair value through profit or loss Derivative instruments (not designated as hedge) Exchange rate swap contracts Non-derivative financial assets Fund beneficiary certificates Financial liabilities-current Held for trading Derivative instruments (not designated as hedge) Exchange rate swap contracts
			$ 5,446 28,924 $ 34,370 $ -

Financial instruments at fair value through profit and loss

• 24 -

Foreign exchange contracts with no hedging accounting applied at the balance sheet date and which have not yet due are as follows: December 31, 2023

ecember 31, 2023
Category Currency Exchange rate swap contracts NTD to USD ecember 31, 2022 Category Currency Exchange rate swap contracts NTD to USD	Expiration period 2024.02.21～2024.02.26 Expiration period 2023.02.09～2023.03.06	Contract amount (In thousands)
		NTD 332,719/USD 10,600 Contract amount (In thousands)
Category Exchange rate swap contracts
		NTD 535,389／USD 17,700

December 31, 2022

The Company engages in exchange rate swaps mainly to hedge the risk of foreign currency assets and liabilities arising from exchange rate fluctuations.

The financial assets and liabilities at fair value through profit or loss incurred valuation gains of $15,892 thousand and $50,322 thousand for the years ended December 31, 2023 and 2022, respectively, are included in other gains and losses in the individual statements of income.

1. Financial assets at fair value through other comprehensive income – investments in equity instruments

instruments
Current Domestic investment Domestic listed stocks NANTEX Industry Co., Ltd., common stocks Chia Her Industrial Co., Ltd. common stocks Non-current Domestic investment Private shares of listed companies Chia Her Industry Co., Ltd., private common shares	December 31, 2023 $ - 302 $ 302 $ - $ -	December 31, 2022
			$ 1,112 - $ 1,112 $ 20,846

The Company exercised the conversion right in November 2021 and acquired 2,266 thousand shares of Chia Her Industrial Co., Ltd. (“Chia Her”) private placement common stock at NT$8.45 per shar (1,560 thousand shares after the capital reduction), which was included in financial assets at fair value through other comprehensive income – noncurrent. The retroactive handling of public issuance procedures of the aforementioned private placement common stocks has been completed on September 19, 2023, and the private placement common stocks have been transferred to financial assets at fair value through other comprehensive income – current.

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• Financial assets at amortized cost

The Company has invested in common stock of listed companies and the private placement of common stock of listed companies for medium and long-term strategic purposes and expects to make profits from the long-term investment. The Company's management believes that it would be inconsistent with the aforementioned long-term investment plan to include short-term fair value fluctuations of these investments in profit or loss, and has therefore elected to designate these investments as measured at fair value through other comprehensive income.

Financial assets at amortized cost
Current Domestic investment Pledged demand deposit Pledged time deposit (1) Time deposits with original expiry date of more than 3 months (1) Non-current Domestic investment Pledged time deposit (1)	December 31, 2023 $ 30,221 770,853 - $ 801,074 $ 14,079	December 31, 2022
			$ 30,072 1,366,902 3,071 $ 1,400,045 $ 1,294,524

• ～

• (1) As of December 31, 2023 and 2022, time deposit interest rate range is 0.55% 5.25% and 0.43% ～ 5.18%, respectively.

• (2) For information on pledges of financial assets measured at amortized cost. (see Note 32)

• (3) The Company invests only in liability instruments with low credit risk as assessed by the impairment. The Company considers the historical default loss rate and the outlook of the industry in which it operates to measure the expected credit loss over 12 months or the expected credit loss over the life of the investment in liability instruments. As the debtor has low credit risk and sufficient ability to settle the contractual cash flows, no expected credit loss has been recorded against financial assets at amortized cost as of December 31, 2023 and 2022.

• Notes receivables (including related parties) and accounts receivables, net (including related parties)

• (1) Notes receivables (including related parties)

Notes receivables of the Company are all business-related.

No overdue notes receivable of the Company on December 31, 2023 and 2022, thus no allowance was made for losses.

• (2) Accounts receivables (including related parties)

At amortized cost Total carrying amount Less: Loss allowance	December 31, 2023 $ 476,423 21,980 $ 454,443	December 31, 2022	December 31, 2022
			$ 556,743 40,872 $ 515,871

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The average credit period for merchandise sales is 60 days and accounts receivable are non-interest bearing. To mitigate credit risk, the Company's management assigns a dedicated team to determine credit limits, approve credit facilities and other monitoring procedures to ensure that appropriate actions are taken to collect overdue accounts receivable. In addition, the Company reviews the recoverable amounts of accounts receivable on a case-by-case basis at the balance sheet date to ensure that appropriate impairment losses have been recorded for uncollectible accounts receivable. Accordingly, the Company's management believes that the Company's credit risk has been significantly reduced.

The Company recognizes an allowance for losses on accounts receivable based on expected credit losses over the period of time. The expected credit loss for the duration of the period is calculated, which takes into account the customer's past default history and current financial condition. Since the Company's credit loss history shows that there is no significant difference in loss patterns among different customer groups, it does not further differentiate between customer groups and only uses the number of days that accounts receivables are open to determine the expected credit loss rate.

If there is evidence that the counter-party is in serious financial difficulty and the Company cannot reasonably expect to recover the amount, for example, if the counter-party is in liquidation, the Company directly eliminates the related accounts receivable, but continues to pursue recovery activities, as the amount recovered is recognized in profit or loss.

The Company measured the allowance for losses on accounts receivable based on the provision matrix as follows:

December 31, 2023

December 31, 2023	December 31, 2023
Less than 90 days Expected credit loss rate 0% Total carrying amount $ 436,402 Loss allowance (life-time expected credit loss) - Amortized cost $ 436,402 December 31, 2022 Less than 90 days Expected credit loss rate 0% Total carrying amount $ 446,440 Loss allowance (life-time expected credit loss) - Amortized cost $ 446,440		91-180 days 0%～5% $ 18,855 ( 943 ) $ 17,912 91-180 days 0%～5% $ 73,014 ( 3,642 ) $ 69,372	181-365 days 0%～100% $ 6,307 ( 6,204 ) $ 103 181-365 days 0%～100% $ 23,303 ( 23,244 ) $ 59	366 days above 0%～100% $ 14,859 ( 14,833 ) $ 26 366 days above 100% $ 13,986 ( 13,986 ) $ -	Total
					$ 476,423 ( 21,980 ) $ 454,443 Total
Expected credit loss rate Total carrying amount Loss allowance (life-time expected credit loss) Amortized cost
					$ 556,743 ( 40,872 ) $ 515,871

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Information on the changes of the loss allowance of accounts receivable is as follows:

	as follows:
11. 12.	Beginning balance Impairment loss Actual write-off Ending balance Inventories Finished goods Work-in-progress Raw materials Natures of cost of goods sold: Cost of inventory sold Losses on inventory valuation Unallocated manufacturing cost Others Investments accounted for using equity	2023 $ 40,872 22,709 ( 41,601) $ 21,980 December 31,2023 $ 841,773 364,612 225,211 $ 1,431,596 2022 $ 3,233,100 - 54,344 ( 10) $ 3,287,434 method December 31,2023 $ 7,563,486 175,271 $ 7,738,757 December 31, 2023 $ 3,992,413 97,205 28,602 131,593 3,313,673 $ 7,563,486	2022 $ 48,149 22,339 ( 29,616) $ 40,872 December 31,2022 $ 1,066,285 415,256 263,740 $ 1,745,281 2021 $ 3,827,055 122,283 19,261 843 $ 3,969,442 December 31,2022 $ 7,645,306 226,094 $ 7,871,400 December 31, 2022 $ 4,084,149 71,380 19,448 181,978 3,288,351 $ 7,645,306		2022
				$ 48,149 22,339 ( 29,616) $ 40,872 December 31,2022
					$ 1,066,285 415,256 263,740 $ 1,745,281 2021
				$ 3,827,055 122,283 19,261 843 $ 3,969,442 December 31,2022
	Investment in subsidiary Investment in associates (1) Investment in subsidiary Non-listed (non-OTC- listed) companies De Licacy (Samoa) Holdings Company De-Fa International Industrial Co., Ltd. View Best Global Limited Chadtex Industrial Co., Ltd. British Virgin Islands De Licacy Holdings Limited

• 28 -

Percentage of ownership and voting rights

De Licacy (Samoa) Holdings Company De-Fa International Industrial Co., Ltd. View Best Global Limited Chadtex Industrial Co., Ltd. British Virgin Islands De Licacy Holdings Limited	December31,2023 100% 100% 100% 55.06% 100%	December31,2022
		100% 100% 100% 55.06% 100%

For the changes in the percentage of ownership and equity interests resulting from various equity transactions, see Note 12 and 30 of the 2023 consolidated financial statements. For the details of the Company’s indirectly held investment in subsidiaries, please refer to Schedule 6 and 7.

The shares of income and other comprehensive income of the subsidiaries accounted for using equity method in 2023 and 2022 are recognized based on the audited financial statements of each subsidiary for the same periods.

(2) Investment in associates – significant associates

Lucky Unique Enterprise Co., Ltd.	December 31,2023 $ 175,271	December 31,2022	December 31,2022
			$ 226,094

The Company did not subscribe the shares of cash capital increase of Lucky Unique Enterprise amounting to $32,778 thousand in proportion of its shareholding in 2022, resulting in the shareholding decreased from 24.1% to 23.62%. As of December 31, 2023 and 2022, the percentages of ownership and voting rights to Lucky Unique Enterprise Co., Ltd. are both 23.62%.

The Company measured the aforementioned associates by equity method.

The following summarized financial information has been prepared on the basis of the financial statements of each associate IFRS accounting standards and reflects adjustments made under the equity method.

Lucky Unique

Lucky Unique
Current assets Non-current assets Current liabilities Non-current liabilities Equity Percentage of ownership Equity attributable to the Group	December 31,2023 $ 561,113 1,247,006 ( 870,438 ) ( 195,637) $ 742,044 23.62% $ 175,271	December 31,2022
	( (	( (	$ 795,974 1,325,331 1,047,904 ) 116,192) $ 957,209 23.62% $ 226,094

• 29 -

Operating revenue Net income (loss)		2023 $ 976,167 $ 143,586)		2022
	(			$ 1,229,314 $ 118,354

For the business nature, principal place of business and country information of the company registration of the above-mentioned related enterprises, please refer to Schedule 6 “Information of the Invested Company, Location ... and Other Related Information”.

13. Property, plant and equipment

The schedule of changes in property, plant and equipment for the years ended December 31, 2021 and 2020 is shown in Schedule 10.

Owned land includes a portion of the Company's plant (with a carrying value of $23,507 thousand), which is agricultural land and is temporarily registered in the name of others, but the agricultural land has been pledged to the Company.

The Company’ property, plant and equipment were assessed in 2023 and 2022, there is no indication of impairment.

Depreciation expense is provided on a straight-line basis over the following useful lives:

lives:
Land improvements	3 to 40 years
Buildings
Plant main buildings	20 to 55 years
Mechanical and power
equipment	5 to 40 years
Engineering system	3 to 55 years
Others	2 to 25 years
Machinery equipment	2 to 12 years
Transportation equipment	3 to 6 years
Other equipment	2 to 25 years

For the amount of property, plant and equipment pledged as security for loans by the Company, see Note 32.

14. Lease agreement

(1) Right-of-use assets

reement Right-of-use assets
Cost Balance at 1 January 2022 Additions Reductions Balance at December 31, 2022		Buildings $ 34,100 111,701 24,819) $ 120,982	Transportation equipment $ 1,423 4,260 - $ 5,683		Total
	(			(	$ 35,523 115,961 24,819) $ 126,665

• 30 -

(2)	Accumulated depreciation Balance at 1 January 2022 Depreciation Reductions Balance at December 31, 2022 Net at December 31, 2021 Cost Balance at 1 January 2023 Additions Reductions Balance at December 31, 2023 Accumulated depreciation Balance at 1 January 2023 Depreciation Reductions Balance at December 31, 2023 Net at December 31, 2023 Lease liabilities Lease liabilities carrying amount Current Non-current Buildings Transportation equipment	Buildings Transportation equipment Total $ 26,677 $ 393 $ 27,070 12,939 1,184 14,123 ( 24,819) - ( 24,819) $ 14,797 $ 1,577 $ 16,374 $ 106,185 $ 4,106 $ 110,291 $ 120,982 $ 5,683 $ 126,665 19,593 275 19,868 ( 115,656) ( 416) ( 116,072) $ 24,919 $ 5,542 $ 30,461 $ 14,797 $ 1,577 $ 16,374 47,246 2,603 49,849 ( 47,973) ( 416) ( 48,389) $ 14,070 $ 3,764 $ 17,834 $ 10,849 $ 1,778 $ 12,627 December 31,2023 December 31,2022 $ 10,340 $ 55,501 $ 2,438 $ 54,925 $ 10,977 $ 106,301 1,801 4,125 $ 12,778 $ 110,426		Total

The discount rate range of the lease liabilities is as follows:

Buildings Transportation equipment	December 31,2023 1.4%～3.1% 1.48%～3.1%	December 31,2022
		1.4%～2.49% 1.45%～2.02%

• (3) Important tenant activities and terms

The Company leased certain pieces of land and buildings for factory and office use for a term of 2 to 3 years. At the end of the lease term, the Company

• 31 -

has no priority purchasing rights for the leased buildings.

As of December 31, 2023, the right-of-use asset lease period was as follows: Buildings March 2025 to June 2025

March 2025 to June 2025 June 2024 to July 2025

Transportation equipment

• (4) Other leasing information

equipment Other leasing information
Short-term leasing expense Total cash used in leasing		2023 $ 2,768 $ 51,758)		2022
	(		(	$ 1,130 $ 15,848)

The Company has selected to apply the exemption from recognition to leases office premises and plant that qualify as short-term leases and does not recognize the related right-of-use assets and lease liabilities for these leases.

All commitments under leases with lease periods beginning after the balance sheet date are as follows:

15. 16. 17.	Lease commitment Prepayments Prepayment for purchases Prepayment for plating fee Others Other current assets Income tax refund receivable Input tax Others Loans (1) Short-term loans Secured loan (Note 32) Bank loan Unsecured loan Bank loan by line of credit Secured bank loans Bank loan by line of credit	December 31,2023 $ 1,600 December 31,2023 $ 24,115 4,156 15,745 $ 44,016 December 31,2023 $ 21,803 203 2,238 $ 24,244 December 31,2023 $ 790,000 1,368,228 $ 2,158,228 1.97%～2.15% 1.95%～2.29%	December 31,2022
			$ 270 December 31,2022
			$ 11,389 2,592 15,771 $ 29,752 December 31,2022
			$ 40,923 1,127 3,290 $ 45,340 December 31,2022
			$ 1,512,000 1,385,322 $ 2,897,322 1.68%～2.15% 1.70%～2.30%

• 32 -

(2) Short-term notes payable

ort-term notes payable
Commercial paper payable Less: Discount on short- term notes and bills payable	December 31,2023 $ 560,000 577 $ 559,423	December 31,2022
			$ 710,000 379 $ 709,621

Outstanding short-term notes and bills payable are as follows: December 31, 2023

December 31, 2023
Guarantor/ Acceptance agency	Face amount			Discount amount		Carrying amount	Interest rate range (%)	Name of collateral	Collateral carrying amount
Commercial paper payable Grand Bills Finance Corp. Taiwan Cooperative Bills Finance Corp. China Bills Finance Corp. Mega Bills Finance Co. Ltd. Dah Chung Bills Finance Corp. Da Ching Bills Finance Corp. Taiwan Finance Corp. International Bills Finance Corp. O-Bank		$ 30,000 50,000 30,000 50,000 30,000 30,000 30,000 50,000 260,000 $ 560,000		$ 40 42 36 22 16 105 7 71 238 $ 577		$ 29,960 49,958 29,964 49,978 29,984 29,895 29,993 49,929 259,762 $ 559,423	1.9 1.64 1.45 1.76 1.74 1.9 1.82 1.78 1.39	None None None None None None None None None	$ - - - - - - - - -

December 31, 2022

December 31, 2022
Guarantor/ Acceptance agency	Face amount			Discount amount		Carrying amount	Interest rate range (%)	Name of collateral	Collateral carrying amount
Commercial paper payable Grand Bills Finance Corp. Taiwan Cooperative Bills Finance Corp. China Bills Finance Corp. Mega Bills Finance Co. Ltd. Dah Chung Bills Finance Corp. Da Ching Bills Finance Corp. Taiwan Finance Corp. International Bills Finance Corp. O-Bank		$ 50,000 100,000 50,000 50,000 50,000 50,000 50,000 50,000 260,000 $ 710,000		$ 23 38 29 12 37 40 11 66 123 $ 379		$ 49,977 99,962 49,971 49,988 49,963 49,960 49,989 49,934 259,877 $ 709,621	1.5 1.39 1.34 1.5 1.68 1.84 1.6 1.55 1.33	None None None None None None None None None	$ - - - - - - - - -

(3) Long-term bank loans

• 33 -

Secured loan Bank loan 1. Syndicated loans 2. And 3. Less: Syndicated loans arrangement fee Unsecured loan Bank loan by line of credit1. Less: Classified as current portion due within one year	December 31,2023 $ 2,667 2,171,215 3,025 2,170,857 698,401 2,869,258 622,838 $ 2,246,420	December 31,2022	December 31,2022
			$ 1,156,667 2,173,273 4,125 3,325,815 970,953 4,296,768 276,741 $ 4,020,027

1. Bank guarantees and credit loans

Secured loan Bank loan Bank loan Unsecured loan Bank loan by line of credit Bank loan by line of credit Bank loan by line of credit Bank loan by line of credit Bank loan by line of credit Less: Classified as current portion due within one year	Expiry date 2023.10.13 2024.08.15 2025.03.20～ 2026.12.08 2026.05.15～ 2029.07.09 2025.08.21～ 2029.11.12 2025.10.08 2026.02.04	Contents The principal is repaid at a time when it is due. The Company has repaid in full in advance in the second quarter of 2023. From September 2021, average amortization of principal in 36 installments. Since September 2020, the principal has been amortized on an average half-year basis. This loan was intended to remit the capital required to set up the Vietnam plant in the investment share capital. From May and June 2022, the principal was repaid in monthly installments. From September 2021 and December 2022, the principal was repaid in monthly installments. From November 2021, the principal was repaid in monthly installments. From March 2022, the principal was repaid in monthly installments.		December 31, 2023 $ - 2,667 285,000 175,170 153,758 45,833 38,640 701,068 275,062 $ 426,006		December 31, 2022
						$ 1,150,000 6,667 400,000 221,130 223,144 70,833 55,846 2,127,620 276,741 $ 1,850,879

The annual interest rate as of December 31, 2023 and 2022 were 1.06% ～ 2.44% and 0.61% ～ 2.30%, respectively.

1. Bank syndications

－ Bank syndication quota $2,200,000 thousand

On September 30, 2021, the Company entered into a syndicated credit agreement with a syndicate of banks for a total amount of $2,200,000 thousand, the purpose of which is to repay loans from financial institutions and to replenish medium-term operating turnover.

Terms and conditions

• 34 -

Item A Item B (Commercial paper guarantee) Less: Classified as current portion due within one year		Line of credit $1,200,000 1,000,000 $2,200,000		Used a	mo	unt December 31, 2022 $1,173,600 999,673 2,173,273 - $2,173,273	Creditperiod From the date of first use to the date of expiration of 5 years From the date of first use to the date of expiration of 5 years	Annual interest rate 2.79% and 2.24% as of December 31, 2023 and 2022, respectively. 1.45% to 1.56% and 1.20% to 1.26% as of December 31, 2023 and 2022, respectively.	Credit granting method
				December 31, 2023 $1,173,600 997,615 2,171,215 347,776 $1,823,439
									Should not be revolving use Revolving use is allowed

Settlement method

• Item A: The 30-month maturity date from the first drawdown date (October 22, 2021) will be the first installment. Thereafter, the outstanding principal balance of Item A before the date of expiration will be amortized in six months at a rate of six installments. Of these, 8% were amortized for the first to fifth installments and 60% for the sixth installment. However, if the date of amortization of the balance of principal for any period as set out in the foregoing manner will be later than the final maturity date, the final maturity date shall be the amortization date of the principle for that period.

• Item B: The full payment obligation shall be fulfilled on the maturity date of the commercial promissory note at the face amount as scheduled, and the first installment shall expire 30 months from the date of the first use, and thereafter the amount shall be reduced in six installments at a rate of one every six months. Among them, the first to the fifth phase of the amortization and decrement of 8%, the sixth phase of the amortization and decrement of 60%.

Financial ratio

During the term of this contract, the Company’s consolidated financial statements shall maintain the ratios shown below:

• (1) Current Ratio (Current Assets/(Current Liabilities － Dividends payable)): shall not be less than one hundred percent (100%) (Inclusive).

• (2) Liabilities Ratio: (Total Liabilities － Dividends Payable － Bank loans secured by full certificates of deposit)/Net of tangibles: before 2022 (inclusive), shall not be higher than two hundred and twenty-five percent (225%) (inclusive); in 2023, shall not be higher than two hundred and ten percent (210%) (inclusive); in 2024, shall not be higher than two hundred percent (200%) (inclusive).

• (3) Interest covers multiplier ((Net income before tax＋Finance costs＋ Depreciation＋Amortization)/Amortization)/Finance costs): 4 times (inclusive) above.

• －

• (4) Net of Tangibles (Equity(include minor shareholdings) Intangible

• 35 -

Assets＋Dividends payable): not less than $4.5 billion (inclusive).

The above financial ratios shall be reviewed every six months from the 2021 consolidated financial statements provided by the borrower. If the borrower fails to meet any one of the above financial ratios in one inspection, but can meet at the next inspection, it will not be regarded as a breach of the contract agreement. However, from the latest interest rate adjustment base date after the inspection date, the loan interest rate shall be increased by 0.15 percent until the financial ratios meet all financial ratio requirements at the next inspection.

All financial ratios in the Company’s 2023 and 2022 consolidated financial statements were in compliance with the above loan contract requirements.

The Company’s pledges to secure long-term loans are described in Note 32.

18. Notes payables and Accounts payables

• (1) Notes payable

yables and Accounts payables Notes payable
Occurrence due to business Occurrence due to nonbusiness－ purchase of property, plant and equipment	December 31,2023 $ 101,011 5,698 $ 106,709	December 31,2022
			$ 125,138 331 $ 125,469

• (2) All accounts payable for business.

(3) The Company has a financial risk management policy to ensure that all payables are repaid within the prearranged credit terms.

19. Other payables

Other payables
Payroll payable and bonus Remuneration for employees and directors Utilities payable Commission payable Transportation fee payable Leave payable Equipment payable Others	December 31,2023 $ 50,402 19,085 20,547 10,473 8,634 8,200 2,714 46,801 $ 166,856	December 31,2022
			$ 64,869 26,363 28,483 16,300 8,359 8,867 2,055 80,778 $ 236,074

• 36 -

20. Deferred revenue

Deferred revenue
Current Non-current	December 31,2023 $ 6,312 $ 10,228	December 31,2022
			$ 1,359 $ 4,474

This represents government subsidies from environmental improvement projects, energy conservation projects and production line technology renovation, which has been recorded as deferred income and transferred to profit or loss over the useful lives of the related assets of 1 to 14 years.

21. Refund liabilities

Refund liabilities
Beginning balance Current year provision Ending balance		2023 $ 4,340 338 $ 4,678		2022
				$ 2,844 1,496 $ 4,340

22. Post-employment benefit plan

• (1) Defined contribution plan

The Labor Pension Act, which is a defined post-employment contribution plan administered by the government, is applicable to the Company and its domestic subsidiaries, and contributes 6% of employees' monthly salaries to the individual accounts of the Labor Insurance Bureau.

• (2) Defined benefit plan

The pension plan of the Company and its domestic subsidiaries under the Labor Standards Act in Taiwan is a government-administered defined benefit pension plan. The employees’ pension payments are based on the average salary for the six months prior to the date of approved retirement. The Company contributes 4% of the employees’ monthly salaries to the pension fund, which is deposited in the name of the Labor Pension Fund Supervisory Committee in a special account in the Bank of Taiwan. If the balance of the special account is not sufficient to pay the employees who are expected to meet the retirement requirements in the following year before the end of the year, the difference will be withdrawn in one lump sum by the end of March of the following year. The management of the special account is entrusted to the Bureau of Labor Funds, Ministry of Labor, and The Company has no right to influence the investment management strategy.

The amounts of defined benefit plan included in the individual balance sheets are shown below:

sheets are shown below:
Present value of defined benefit obligation Plan assets at fair value	December 31, 2023 $ 170,872 ( 203,578) ($ 32,706)	December 31, 2022
	( (	( (	$ 177,247 205,435) $ 28,188)

• 37 -

Movements of net confirmed welfare assets:

January 1, 2022 Current service costs Interest expense (income) Recognized in profit or loss Remeasurement Planning assets remuneration (in addition to the amount included in net interest) Actuarial loss (gain) Changes in financial assumptions Experience adjustment Recognized in other comprehensive income Employer’s contribution Benefit expenditures December 31, 2022 Current service costs Interest expense (income) Recognized in profit or loss Remeasurement Planning assets remuneration (in addition to the amount included in net interest) Actuarial loss (income) Changes in financial assumptions Experience adjustment Recognized in other comprehensive income Employer’s contribution Benefit expenditures December 31, 2023	Present value of defined benefit obligation $ 181,821 573 1,136 1,709 - ( 3,892 ) 12,859 8,967 - ( 15,250) 177,247 376 2,438 2,814 - 1,654 ( 949) 705 - ( 9,894) $ 170,872	Plan assets at fairvalue ($ 193,344) - ( 1,241) ( 1,241) ( 15,245 ) - - ( 15,245) ( 10,855) 15,250 ( 205,435) - ( 2,898) ( 2,898) ( 1,460 ) - - ( 1,460) ( 3,679) 9,894 ($ 203,578)	Net defined benefit assets	Net defined benefit assets
	( ( ( (	( ( ( ( ( ( ( ( ( ( ( ( (	( ( ( ( ( ( ( ( ( ( ( ( ( (	$ 11,523) 573 105) 468 15,245 ) 3,892 ) 12,859 6,278) 10,855) - 28,188) 376 460) 84) 1,460 ) 1,654 949) 755) 3,679) - $ 32,706)

The amount recognized in profit or loss for defined benefit plans were summarized by function as follows:

summarized by function as follows:
Operating costs Marketing expenses General and administrative expenses Research and development expenses		2023 $ 47 ) 12 ) 12 ) 13) $ 84)		2022
	( ( ( ( (			$ 265 65 67 71 $ 468

The Company is exposed to the following risks as a result of the Labor Standards Act pension system:

• 38 -

• Investment risk: Bureau of Labor Funds, Ministry of Labor invests its labor pension funds in domestic and foreign equity securities, debt securities and bank deposits through its own use and entrusted operations, but the amount of Plan Assets allocated to the Company is based on the income at an interest rate not lower than the local bank’s two-year time deposit rate.

• Interest risk: The decrease in interest rates on government bonds will increase the current value of the defined benefit obligation, but the return on investment in plan assets will also increase, which will have a partially offsetting effect on the net defined benefit obligation.

• Payroll risk: The defined benefit obligation current value is calculated by reference to the future salary of the plan member. Therefore, an increase in plan members’ salaries will increase the defined benefit obligation current value.

The present value of the Company’s defined benefit obligation was actuarially determined by a qualified actuary and the significant assumptions at the measurement date were as follows:

Discount rate Expected rate of salary increase	December 31,2023 1.25% 2%	December 31,2022
		1.375% 2%

The amounts that would increase (decrease) the present value of the defined benefit obligation if there were reasonably possible changes in significant actuarial assumptions, respectively, with all other assumptions held constant, are as follows:

Discount rate Increase 0.25% Decrease 0.25% Expected rate of salary Increase 0.25% Decrease 0.25%	December 31, 2023 ($ 3,284) $ 3,380 $ 3,297 ($ 3,219)	December 31, 2022	December 31, 2022
	( (	( (	$ 3,602) $ 3,713 $ 3,624 $ 3,533)

The sensitivity analysis above may not reflect actual changes in the current value of the defined benefit obligation because actuarial assumptions may be correlated with each other and changes in only one assumption are unlikely.

Amount expected to be withdrawn within 1 year Average period of defined benefit obligation expiration	December 31,2023 $ - 7.8 years	December 31,2022	December 31,2022
			$ 10,736 8.2 years

• 39 -

23. Equity

• (1) Common stocks

Common stocks
Authorized shares (1000 shares) Authorized capital stock Number of shares issued and fully paid (1000 shares) Issued capital stocks	December 31,2023 480,000 $ 4,800,000 407,640 $ 4,076,396	December 31,2022
			480,000 $ 4,800,000 384,566 $ 3,845,657

The issued common shares have a par value of $10 per share and each share is entitled to one vote and the right to receive dividends.

The Company resolved to issue 23,074 thousand of new shares with a par value of NT$10 through the capitalization of retained earnings by the regular shareholders meeting on June 14, 2023. The paid-in capital became NT$4,076,396 thousand after the capital increase. The preceding cash capital increase proposal has been submitted and approved by the Securities and Futures Bureau of Financial Supervisory Commission on July 26, 2023 and August 30, 2023 was determined as the base date of the capital increase.

• (2) Capital surplus

Capital surplus
May be used to make up losses, pay cash or capitalize (Note) Stock issuance premium Corporate bond conversion premium Treasury stocks transactions Actual acquired or the difference between the actual acquisition or disposal price of a subsidiary and its carrying value May be used to make up losses Recognition of changes in equity of investment in associates accounted for using equity method	December 31,2023 $ 405,552 32,325 77,146 65,024 1,607 $ 581,654	December 31,2022
			$ 405,552 32,325 77,146 65,024 1,607 $ 581,654

Note: Such capital surplus may be used to cover losses or, when the Company has no - 40 -

losses, to distribute cash or to capitalize capital, provided that such capitalization is limited to a certain percentage of the paid-in capital each year. (3) Retained earnings and dividends policy

In accordance with the Company’s Articles of Incorporation, if there is any surplus in the annual accounts, the Company shall first pay taxes to cover the deficits of previous years and then set aside 10% as legal reserve, but if the legal reserve has reached the Company’s paid-in capital, it may not be set aside, and the rest shall be set aside or reversed to special reserve in accordance with the law, and the remaining amount shall be added up. The accumulated undistributed earnings of prior years shall be retained by the board of directors at its discretion, depending on the operational needs, to prepare a proposal for the distribution of earnings and submit it to the shareholders' meeting for resolution on the distribution of dividends to shareholders. The Company’s policy on the distribution of employees’ and directors’ remuneration is described in Note 25(8) “Employee Compensation and Directors’ Remuneration”.

Under the objective of maintaining schedule dividends, the Board of directors shall, in principle, distribute not less than 50% of the scheduled earnings, of which the cash portion of dividends and bonuses to shareholders shall not be less than 10% of the shareholders’ distribution, subject to adjustment based on the Company's performance and capital requirements.

The legal reserve shall be set aside until the remaining balance reaches the Company’s total paid-in capital and may be used to cover losses. If the Company has no deficit, the excess of the legal reserve over 25% of the total paid-in capital may be distributed in cash.

When the Company sets aside the special reserve by using the net amount of prior accumulated other equity deductions, and the unappropriated surplus in the previous period is insufficient to set aside, the current net profit after tax plus the other items other than the net profit after tax shall be included in the current unappropriated surplus for setting aside. The Company resolved to distribute earnings for the years 2022 and 2021 at the shareholders meeting held on June 14, 2023 and June 17, 2022 as follows:

Provision of legal reserve Provision (reversal) of special reserve Cash dividends Stock dividends Cash dividends per share (NT$) Stock dividends per share (NT$)		2022 $ 37,349 $ 229,406) $ 153,826 $ 230,739 $ 0.4 0.6		2021
	(			$ 17,260 $ 155,342 $ - $ - $ - -

In addition, the Company at the shareholders’ meeting on June 17, 2022 to distribute cash dividends ($0.25 per share) at a capital surplus - share issue premium of $96,142 thousand.

• 41 -

The earnings distribution proposal of 2023 to be proposed by the board of directors on March 13, 2024 is as follows:

directors on March 13, 2024 is as follows:
Provision of legal reserve Provision of special reserve Cash dividends Cash dividends per share (NT$)		2023
		$ 7,435 $ 84,630 $ 101,910 $ 0.25

The earnings distribution proposal of 2023 is expected to be resolved by the regular shareholders meeting on June 7, 2024.

• (4) Special reserve

2023 2022 Beginning balance $ 557,298 $ 401,956 Provision and reversal of special reserve Provision (reversal) of deductions to other equity ( 229,406 ) 155,342 Ending balance $ 327,892 $ 557,298

Upon the distribution of earnings, special reserve shall be set aside for the difference between the net deductions to other equity and the special reserve appropriated for first-time adoption of IFRSs. When there is reversal in the net deductions to other equity, the special reserve in proportion to the appropriation may be reversed for earnings distribution.

• (5) Other equities

• Exchange differences on conversion of financial statements of foreign operations

operations
Beginning balance Current year occurred Conversion differences of foreign operations Related taxes of foreign operations Shares of subsidiaries and associates accounted for using equity method Other comprehensive income of the year Share of disposal of subsidiaries accounted for using equity method Ending balance		2023 $ 294,661) 142,325 ) 28,465 9,416 104,444) - $ 399,105)		2022
	( ( ( (		( ( (	$ 572,021) 326,307 67,705 ) 6,540 265,142 12,218 $ 294,661)

• 42 -

• Unrealized valuation gains or losses on financial assets at fair value through other comprehensive income

Beginning balance Current period generated Unrealized gains or losses / Equity instruments Shares of subsidiaries and associates accounted for using equity method Total other comprehensive income Transfer of accumulated gain or loss on disposal of equity instruments to retained earnings Ending balance		2023 $ 33,231) 4,809 35,816 40,625 20,811) $ 13,417)		2022
	( ( (		( ( ( ( (	$ 7,744 9,288 ) 30,040) 39,328) 1,647) $ 33,231)

24. Revenue

Revenue
Sales revenue Other operating revenue		2023 $ 3,596,763 33,445 $ 3,630,208		2022
				$ 4,332,636 24,379 $ 4,357,015

(1) Description of customer contract

Revenue from sales of long- and short-staple fibers

The Company recognizes revenue and accounts receivable from the sale of short- and long-haul fabrics when the terms of trade are fulfilled. The average credit period of the Company's merchandise sales is 60 days. Most of the contracts are recognized as accounts receivable when the merchandise is transferred and the Company has the unconditional right to receive the consideration. These account receivables are usually collected in short time and do not have significant financial components. However, for some of these contracts, the Company is obligated to transfer the merchandise to the customer when the consideration was received from those customers before transferring the merchandise, which shall be recognized as contract liabilities.

(2) Balance of contract

contract liabilities. (2) Balance of contract	contract liabilities. (2) Balance of contract	contract liabilities. (2) Balance of contract	contract liabilities. (2) Balance of contract	contract liabilities. (2) Balance of contract	contract liabilities. (2) Balance of contract	contract liabilities. (2) Balance of contract
December 31, 2023 December 31, 2022 Notes receivable (including related party) (Note 10 and 31) $ 45,184 $ 70,084 Accounts receivable (including related party) (Note 10 and 31) $ 454,443 $ 515,871 (3) Revenue breakdown from customer contracts 2023 Major products and business Long- and short-staple fibers $ 3,177,419 $ Others 452,789 $ 3,630,208 $							January1,2022
								$ 145,947 $ 561,647 2022
		$ 3,177,419 452,789 $ 3,630,208				$	3,975,072 381,943 4,357,015
						$

• 43 -

25. Net profit before tax

(1) Net other income and expenses

Net profit before tax (1) Net other income and expenses
Net gains (losses) on disposal of property, plant and equipment (2) Interest income Bank deposits Capital loans and related party interest Deposit settlement interest (3) Other income Grants revenue Rental income Counseling fee income Handling fee income Income from sale of sample fabric Income from sale of waste materials Claims income Others (4) Other gains and losses Net gains on foreign currency exchange Net gains on valuation of financial instruments at fair value through profit or loss Others (5) Finance costs Interest on bank loans Amortization of handling fees on syndicated loans Interest on lease liabilities Less: Amounts included in the cost of qualifying assets (included in property, plant and equipment and prepayments for equipment)		2023 $ 5,365) 2023 $ 81,935 26 44 $ 82,005 2023 $ 3,988 6,198 22,914 4,587 6,726 2,426 9,991 58,075 $ 114,905 2023 $ 21,977 15,892 16,740) $ 21,129 2023 $ 129,660 1,100 1,672 412 $ 132,020		2022
	(			$ 1,815 2022
				$ 28,516 2,889 22 $ 31,427 2022
				$ 8,591 10,951 24,056 5,473 5,810 4,096 1,171 4,180 $ 64,328 2022
	(		(	$ 335,516 50,322 11,287) $ 374,551 2022
				$ 106,665 1,100 320 462 $ 107,623

• 44 -

Capitalization of interest relevant information as below:

Capitalization of interest amount Capitalization at interest rate (6) Depreciation and amortization Property, plant and equipment Right-of-use assets Depreciation expense summarized by function Operating costs Operating expenses (7) Employee benefit expense Short-term employee benefits Payroll Labor and health insurance fees Remuneration to directors Others Post-employment benefits Defined contribution plan Defined benefit plan (Note 22) Summary by function Operating costs Operating expenses	2023 $ 412 2.15%～3.24% 2023 $ 106,642 49,849 $ 156,491 $ 133,041 23,450 $ 156,491 2023 $ 429,768 46,596 6,172 18,431 500,967 14,610 ( 84) 14,526 $ 515,493 $ 329,241 186,252 $ 515,493	2022	2022
		$ 462 1.14%～2.49% 2022
			$ 118,396 14,123 $ 132,519 $ 106,301 26,218 $ 132,519 2022
	(		$ 474,320 44,159 10,723 14,981 544,183 14,850 468 15,318 $ 559,501 $ 347,751 211,750 $ 559,501

(8) Remuneration to employees and directors

In accordance with the Company's Articles of Incorporation, the Company provides for employee remuneration and director remuneration at a rate of not less than 4% and not more than 3%, respectively, of the pre-tax benefit for the year before the distribution of employee and director remuneration.

2023 and 2022 employees and directors’ remuneration were resolved by the Board of Directors on March 13, 2024 and March 15, 2023, respectively, the resolutions were as follows:

• 45 -

Estimated ratio Remuneration to employees Remuneration to directors Amount Remuneration to employees Remuneration to directors	2023 4% 1.5% 2023 Cash $ 4,622 1,733	2022
		4% 1.5% 2022
		Cash
		$ 16,775 6,291

If there is any change in the amount after the adoption of the annual parent company only financial statements, the change in accounting estimate will be adjusted and recorded in the following year.

There is no difference between the actual amount of employees and directors’ remuneration for fiscal years of 2021 and 2020 and the amount recognized in the parent company only financial statements for fiscal 2021 and 2020.

Please refer to the Market Observation Post System of the Taiwan Stock Exchange Corporation for information on the remuneration of employees and directors resolved by the Board of Directors of the Company. (9) Foreign exchange gain (loss)

2023 Total foreign exchange income $ 75,118 Total foreign exchange loss ( 53,141) Net gain $ 21,977 Income tax (1) Income tax recognized in profit or loss and expenses and Main components of income tax expenses (benefits) 2023 Current income tax Surtax on unappropriated earnings $ 6,036 Prior year adjustments 3,652 Basic tax 1,967 Deferred tax Occurred in current year 44,905 $ 56,560

26. Income tax

A reconciliation of accounting income to income tax expenses (benefits) was as follows:

• 46 -

(2) (3)	2023 Net profit before tax $ 109,188 Income tax expense calculated at statutory tax rate on net income before tax $ 21,838 Nondeductible expenses in determining taxable income 217 Nonaccrual income in determining taxable income ( 1,536 ) Unrecognized deductible temporary differences ( 15,500 ) Adjustments for prior years 3,652 Effect pf deferred income tax from subsidiaries’ earnings 40,082 Tax exempt income ( 196 ) Surtax on unappropriated earnings 6,036 Payables on difference of basic tax 1,967 $ 56,560 Income tax recognized in other comprehensive income 2023 Deferred tax Current year occurred Translation of foreign operations $ 28,465 Remeasurement of defined benefit plan ( 151) $ 28,314 Current tax assets and liabilities December 31, 2023 Tax refund receivable $ 3,112 Income tax payable $ -		2022
		( (	$ 396,314 $ 79,263 314 18,826 ) 31,495 ) - - - - - $ 29,256 2022
		( $ 67,705 ) ( 1,256) ($ 68,961) December 31, 2022
			$ 5,674 $ 2,557

(4) Deferred tax assets and liabilities Changes in deferred tax assets and liabilities as below:

• 47 -

2023

2023
Deferred tax assets Temporary differences Unrealized gains on sale of property, plant and equipment Allowance for loss of market price decline and obsolete and slow-moving inventories Leave payable Unrealized foreign exchange losses Exchange differences on translation of foreign operations Loss allowance Unallocated fixed manufacturing costs Others Loss credit Deferred tax liabilities Temporary differences Property, plant and equipment Net defined benefit assets Unrealized foreign exchange gains 2022 Deferred tax assets				Recognized in profit or loss $ 5,424 ( 18,946 ) ( 133 ) 1,245 - ( 3,568 ) 1,892 (191) ( 14,277) (50,268) ($ 64,545) ( $ 2,653) 2,008 (18,995) ($ 19,640) Recognized in profit or loss ( $ 1,644 ) 24,456 207 ( 39,235 ) - ( $ 2,530 ) ( 97 ) 2,183 ( 16,660 ) (1,575) ($ 18,235) ( $ 6,403 ) ( 1,571 ) 18,995 $ 11,021		Recognized in other comprehensive income $ - - - - 28,465 - - - 28,465 - $ 28,465 $ - 151 - $ 151 Recognized in other comprehensive income $ - - - - ( 67,705 ) $ - - - ( 67,705 ) - ($ 67,705) $ - 1,256 - $ 1,256				Ending balance 32,602 29,316 1,640 1,245 70,544 3,353 3,071 4,244 146,015 9,310 155,325 20,174 6,541 - 26,715 Ending balance
				$ ( ( ( ( ( ( ( ( ( (					$
		$							$
		$							$
	$								$
Temporary differences Unrealized gains on sale of property, plant and equipment Allowance for loss of market price decline and obsolete and slow- moving inventories Leave payable Unrealized foreign exchange losses Exchange differences on translation of foreign operations Loss allowance Unallocated fixed manufacturing costs Others Loss credit Deferred tax liabilities			$ 28,822 23,806 1,566 39,235 109,784 $ 9,451 1,276 2,252 216,192 61,153 $277,345 $ 29,230 4,697 - $ 33,927		( $ 1,644 ) 24,456 207 ( 39,235 ) - ( $ 2,530 ) ( 97 ) 2,183 ( 16,660 ) (1,575) ($ 18,235) ( $ 6,403 ) ( 1,571 ) 18,995 $ 11,021		$ - - - - ( 67,705 ) $ - - - ( 67,705 ) - ($ 67,705) $ - 1,256 - $ 1,256			$ 27,178 48,262 1,773 - 42,079 $ 6,921 1,179 4,435 131,827 59,578 $ 191,405 $ 22,827 4,382 18,995 $ 46,204
Temporary differences Property, plant and equipment Net confirmed welfare assets Unrealized foreign exchange gains

• 48 -

• (5) Information about unused loss credit

Information about unused loss credit	Information about unused loss credit
Information about the Company’s loss credit for the year ended December 31, 2023 is as follows: Balance notyet deducted Final credityear $ 46,553 2031
	2031

• (6) Aggregate amount of temporary differences related to investments and not recognized as deferred income tax liabilities

As of December 31, 2023 and 2022, taxable temporary differences related to investments in subsidiaries and not recognized as deferred income tax liabilities were $2,237,419 thousand and $2,352,762 thousand, respectively.

• (7) Income tax assessments

The income tax returns of the Company through 2021 have been assessed by the tax authorities.

27. Earnings per share

When calculating earnings per share, the effect of stock dividend distribution has been adjusted retrospectively. The base date of the stock dividend distribution is on August 30, 2023. Due to the retrospective adjustment, the basic and diluted earnings per share have changed as follows:

share have changed as follows:
Basic earnings per share Diluted earnings per share	Before retrospective adjustment 2022 $ 0.95 $ 0.95	After retrospective adjustment
			2022
			$ 0.9 $ 0.9

Profit and weighted average number of common stock outstanding that were used in the computation the net income of earnings per share were as follows: Profit for the year

Profit for the year
Profit attributable to the Company’s owners Shares Weighted average number of outstanding shares Effect of dilutive potential common stock: Employee remuneration Weighted-average number of common shares for the purpose of diluted earnings per share		2023 2022 $ 52,628 $ 367,058 (In thousands of shares) 2023 2022 407,640 407,640 568 1,194 408,208 408,834		2022
				407,640 1,194 408,834

• 49 -

If the Company has the option to pay employees in stock or cash, the calculation of diluted earnings per share assumes that employee compensation will be paid in stock and is included in the weighted-average number of common shares outstanding for the purpose of calculating diluted earnings per share when the potential common shares have a dilutive effect. The dilutive effect of these potential common shares will continue to be considered in the calculation of diluted earnings per share prior to the issuance of employee compensation shares in the following year.

28. Non-cash transactions

The Company has the following non-cash transaction investment in 2023 and 2022:

• (1) Acquisition of property, plant and equipment

(1) Acquisition of property, plant and equipment
2023 Investment activities affecting both cash and non-cash items Additions of property, plant, and equipment $ 40,988 Amounts of capitalized interests ( 412 ) Decrease (increase) in other payables (including related parties) and notes payables (including related parties) ( 8,978) Cash paid for property, plant and equipment $ 31,598 (2) Disposal of property, plant and equipment 2023 Affects cash and non- cash investments Proceeds from disposal of property, plant and equipment $ 10,434 Decrease in other receivables (including related parties) - Cash received for property, plant and equipment $ 10,434		2022
	(	$ 105,559 462 ) 4,729 $ 109,826 2022
		$ 1,888 130 $ 2,018

• 50 -

29. Capital risk management

Due to the need to maintain adequate capital to support the upgrading of plant and equipment, the Company will be required to maintain adequate capital. Therefore, the capital management of the Company is to ensure that the necessary financial resources and operating plans are in place to meet the future needs of working capital, capital expenditure, research and development expenses, debt repayment and dividend payment.

30. Financial instruments

• (1) Fair value information – financial instruments not measured at fair value

The carrying amount of the Company’s financial instruments not measured at fair value are reasonable approximations of their fair value, such as cash, financial assets at amortized costs (including current and non-current), accounts receivable (including related parties), other accounts receivable (including related parties), refundable deposits, short-term loans, short-term notes and bills payable, accounts payable (including related parties), other accounts payable (including related parties) ,long-term loans (including maturity date within one year), and guaranteed deposits received.

• (2) Fair value information - financial instruments measured at fair value on a recurring basis

• Fair value hierarchy

December 31, 2023

ing basis Fair value hierarchy December 31, 2023
Financial assets at fair value through profit or loss Fund beneficiary certificates Financial assets at fair value through other comprehensive income-current Equity instrument investments - Domestic listed stocks Financial liabilities at fair value through profit or loss Derivative instrument		Level 1 $ 13,826 $ 302 $ -		Level 2 $ - $ - $ 8,919		Level 3 $ - $ - $ -		Total
								$ 13,826 $ 302 $ 8,919

• 51 -

December 31, 2022 Financial assets at fair value through profit or loss Derivative instruments－ Exchange rate swap contracts Fund beneficiary certificates Financial assets at fair value through other comprehensive income-current Equity instrument investments - Domestic listed stocks Financial assets at fair value through other comprehensive income-non-current Equity instrument investments －Domestic listed private placement of shares		Level 1 $ - 28,924 $ 28,924 $ 1,112 $ -		Level 2 $ 5,446 - $ 5,446 $ - $ 20,846		Level 3 $ - - $ - $ - $ -		Total
								$ 5,446 28,924 $ 34,370 $ 1,112 $ 20,846

There were no transfers between Level 1 and Level 2 fair value measurements in 2022. As the private placement stocks of listed companies held by the Group implemented retroactive handling of public issuance procedures, there are quoted prices in an active market. Therefore, the stocks have been transferred from level 2 to level 1.

1. Level 2 fair value valuation techniques and inputs

Type of financial instruments Derivative instruments－ Exchange rate swap contracts Domestic listed private placement of shares

Valuation techniques and inputs

The discounted cash flow method: the future cash flows are estimated based on the observable forward exchange rate and the contracted foreign exchange rate at the end of the period and are discounted at a rate that reflects the credit risk of each counter party. Evaluated by the B-S option pricing model, based on the underlying price, option performance price, risk-free interest rate, historical volatility of the underlying and the maturity period.

• 52 -

(2) Type of financial instruments

December 31, 2023 December 31, 2022

Financial assets
Mandatorily measured at
fair value through profit
or loss	$	13,826	$	34,370
Financial assets at
amortized cost (Note 1)		1,655,098		3,481,804
Financial assets at fair
value through other
comprehensive income		302		21,958
Financial liabilities
Measured at fair value
through profit or loss－
Held for sale		8,919		-
At amortized cost (Note 2)		6,762,716		9,014,451

• Note 1: Balances include cash, notes and accounts receivable (including related parties), other receivables (including related parties), financial assets carried at amortized cost (both current and non-current) and refundable deposits, and other financial assets carried at amortized cost.

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

(3) Financial risk management objectives and policies

The Company’s major financial instruments include investments in equity and debt instruments, receivables, payables, lease liabilities and borrowings. The Company’s financial management department provides services to each business unit, coordinates access to domestic and international financial markets, and monitors and manages the financial risks associated with The Company's operations through internal risk reporting that analyzes risk exposures based on the level and breadth of risk. These risks include market risk (including exchange rate risk, interest rate risk and other price risks), credit risk and liquidity risk.

The Company mitigates the effects of these risks by hedging the risk through derivative financial instruments. The use of derivative financial instruments is governed by the policies adopted by The Company’s board of directors, which are the written principles for exchange rate risk, interest rate risk, use of derivative financial instruments and non-derivative financial instruments, and investment of surplus liquidity. Internal auditors review compliance with the policy and the amount of risk exposure on an ongoing basis. The Company does not trade in financial instruments (including derivative financial instruments) for speculative purposes.

1. Market risk

• 53 -

The main financial risks to which The Company is exposed as a result of its operating activities are foreign currency exchange rate risk (see (1) below), interest rate risk (see (2) below), and other price risk (see (3) below).

The Company engages in various derivative financial instruments to manage its exposure to foreign currency exchange rate risk, including exchange rate swap contracts to hedge the exchange rate risk arising from foreign sales of goods.

There is no change in The Company's exposure to market risk of financial instruments and its management and measurement of such exposure.

(1) Exchange rate risk

The Company engages in foreign currency-denominated sales and import transactions and foreign currency borrowings, which expose The Company to exchange rate risk. The carrying amounts of The Company's monetary assets and monetary liabilities denominated in non-functional currencies as of the balance sheet date (including monetary items denominated in non-functional currencies that have been eliminated in the Consolidated Financial Statements) are described in Note 34.

Sensitivity analysis

The Company is primarily affected by fluctuations in the U.S. dollar exchange rate.The following Schedule details the sensitivity analysis of the Company when the functional currency strengthens or weakens by 1% against the U.S. dollar. The sensitivity analysis includes only foreign currency items in circulation. A positive number in the Schedule below represents the amount by which pretax income would increase if the functional currency weakened by 1% relative to the U.S. dollar; a negative number in the same amount would affect pre-tax income if the functional currency strengthened by 1% relative to the U.S. dollar.

==> picture [325 x 28] intentionally omitted <==

This was mainly due to the Company’s cash denominated in U.S. dollars, financial assets measured at amortized cost, receivables, other receivables, payables, other payables and borrowings that were outstanding and not cash flow hedged at the balance sheet date.

The decrease in the Company’s sensitivity to foreign exchange rates during the year was mainly due to the decrease in the Company’s net financial assets at amortized cost denominated in U.S. dollars.

• 54 -

(2) Interest rate risk

Interest rate risk arises because individuals in the Company borrow funds at both fixed and floating interest rates. The Company manages interest rate risk by maintaining an appropriate mix of fixed and floating interest rates.

The carrying amounts of the Company's financial assets and financial liabilities exposed to interest rate risk as of the balance sheet date were as follows:

Fair value interest rate risk Financial assets Financial liabilities Cash flow interest rate risk Financial assets Financial liabilities	December 31,2023 $ 784,932 572,201 223,164 5,027,486	December 31,2022
		$ 2,664,496 820,047 66,275 7,194,090

Sensitivity analysis

As 1% increase in interest rates would decrease the Company’s income before tax by $48,043 thousand and $71,278 thousand for 2023 and 2022, respectively, with all other variables held constant.

The Company’s sensitivity to interest rates decreased during the year mainly due to the decrease in variable rate loans.

(3) Other price risk

The Company’s equity price risk arising from its investment in domestic listed stocks is not material.

2. Credit risk

Credit risk refers to the risk of financial loss resulting from the default of the counter-parties to the contracts. As of the balance sheet date, the Company's maximum exposure to credit risk, which may result from the counter-parties' default on their obligations and the Company's provision of financial guarantees, is mainly due to:

• (1) The carrying amount of financial assets recognized in the individual balance sheets.

• (2) The maximum amount that the Company may be required to pay as a result of providing financial guarantees, regardless of the likelihood of occurrence.

The Company’s counter-parties are all creditworthy organizations and are not expected to have significant credit risk. The Company also

• 55 -

evaluates the financial position of its accounts receivable customers on an ongoing basis.

Total accounts receivable with significant concentrations of credit risk are as follows:

risk are as follows:
SINTEX INTERNATIONAL LTD. SHANTA INDUSTRIES LTD.	December 31,2023 Amount Ratio $ 69,330 15% 89,378 19%	December 31,2022
	Amount $ 69,330 89,378	Amount $ 81,181 144,216	Ratio
			15% 26%

3. Liquidity risk

The Company manages and maintains sufficient cash to support its operations and mitigate the impact of cash flow fluctuations. The Company's management monitors the use of banking facilities and ensures compliance with the terms of borrowing contracts.

The Company's working capital and banking facilities obtained are sufficient to meet future operating requirements and therefore there is no liquidity risk that the Company will not be able to raise funds to meet its contractual obligations.

Bank loans are a significant source of liquidity to the Company. Please refer to the explanations in (3) credit lines for the unused credit lines of the Company.

(1) Liquidity and interest rate risk of non-derivative financial liabilities

The analysis of the remaining contractual maturities of nonderivative financial liabilities is prepared based on the undiscounted cash flows (including principal and estimated interest) of the financial liabilities based on the earliest possible date on which the Company could be required to make repayment. Accordingly, the Company's bank loans that are repayable on demand are listed in the table below at the earliest possible date, regardless of the probability that the bank will immediately enforce the right; the maturity analysis of other non-derivative financial liabilities is prepared based on the contractual repayment dates.

The undiscounted interest amount of interest cash flows paid at floating interest rates is derived from the curve of the yield rate at the balance sheet date.

• 56 -

December 31, 2023

December 31, 2023
Non-derivative financial liabilities Non-interest-bearing liabilities Lease liabilities Floating rate instruments Fixed rate instruments Financial guarantee liabilities December 31, 2022 Non-derivative financial liabilities Non-interest-bearing liabilities Lease liabilities Floating rate instruments Fixed rate instruments Financial guarantee liabilities		Less than 6 months $ 1,165,599 5,660 2,353,489 560,000 498,371 $ 4,583,119 Less than 6 months $ 1,103,539 29,236 2,662,099 710,000 871,101 $ 5,375,975	6 months to 1 year $ - 4,794 509,816 - - $ 514,610 6 months to 1 year $ - 28,088 618,658 - 140,200 $ 786,946	1 to 9 years
				$ 10,208 2,443 2,349,449 - 1,466,916 $ 3,829,016 1 to 9 years
				$ 7,201 55,513 4,455,449 - 718,614 $ 5,236,777

The floating rate instrument amount of the above nonderivative financial assets and liabilities will be different from the interest rate estimated at the balance sheet date due to the floating rate.

(2) Liquidity and interest rate risk of derivative financial liabilities

The liquidity analysis of derivative financial instruments is based on total undiscounted cash inflows and outflows for derivative instruments with gross settlement. When the amounts payable or receivable are not fixed, the disclosed Amounts are determined based on the projected interest rates derived from the yield rate curve at the balance sheet date.

December 31, 2023

1 to 3 months 4 to 6 months Total Total settlement Exchange rate swap contracts Flow-in $ 323,800 $ - $ 323,800 Flow-out ( 332,719 ) - ( 332,719 ) ( $ 8,919 ) $ - ( $ 8,919 ) - 57 -

(3) Credit lines

December 31, 2023 December 31, 2022

Unsecured bank credit lines （ reviewed each year ） － Used amount $ 2,626,052 $ 3,065,896 － Unused amount 897,349 910,057 $ 3,523,401 $ 3,975,953 Secured bank credit lines （ reviewed each year ） － Used amount $ 2,960,857 $ 4,837,815 － Unused amount 2,735,410 1,663,852 $ 5,696,267 $ 6,501,667

31. Related-party transactions

Except as disclosed in other notes, the transactions between the Company and its related parties are as follows:

• (1) Names of related parties and their relationships

Name of related party Relationship with the Company Best Alliance Limited Subsidiary Chadtex Company Subsidiary De Fa Company Subsidiary Hong Kong Eden Road Limited Subsidiary De Shen (Cayman) Company Subsidiary New Lake Ltd. Subsidiary Vietnam De Licacy Enterprise Subsidiary Futures Co., Ltd. Subsidiary De Licacy BVI Holdings Subsidiary De Hong Company Subsidiary De Hong (Vietnam) Company Subsidiary De Licacy Samoa Company Subsidiary Lucky Unique Associate Tung Ming Company Subsidiary of associate, Lucky Unique E Textile Company Subsidiary of associate, Lucky Unique (Note 1) De Kao Trading Co., Ltd. Subsidiary of associate, Lucky Unique Full Vision Enterprise Co., Ltd. Subsidiary of associate, Lucky Unique (Note 1) Well&David Corp. Subsidiary of associate, Lucky Unique Future Tycoon Holdings Co., Ltd. Key management are directors of the company Future Tycoon Industrial Co., Ltd. Key management are directors of the company DI JAJ SPACE DESIGN CO., LTD. The general manager of the Company is the second degree relative of the chairman of the company. (Note 3)

(Continued)

• 58 -

(continued from the previous page) Name of related party Relationship with the Company DI JAJ SPACE DESIGN CO., LTD. The general manager of the Company is the second degree relative of the chairman of the company. (Note 3) Delight Industrial Co., Ltd. The chairman of the Company is the second degree of relative of chairman of the company (Note 2) Fuson International Co., Ltd. The Chairman of the Company is a director of the company Doyo Enterprise Co., Ltd. The Chairman of the Company is a director of the company Sheng-Bo Technology Corp. The Chairman of the Company is a director of the company DNE Energy Inc. The Chairman is the same person Yeh, Chia-Ming Key management Future Power International Co., Ltd. The general manager of the Company is the second degree relative of the chairman of the company. (Note 3)

• Note 1: The company is no longer subsidiary of the associate, Lucky Unique, since December 30, 2022.

• Note 2: The director of the Company was the chairman of the company before June 14, 2023.

• Note 3: The company is the related party of the Company after June 14. 2023.

• (2) Operating revenue

Operating revenue
Item Sales revenue	Type of related party Subsidiary Associate Subsidiary of associate, Lucky Unique The general manager of the Company is the second degree of relative of chairman of the company.		2023 $ 335,155 276,881 63,382 40,275 $ 715,693		2022
					$ 255,614 379,607 128,594 - $ 763,815

The prices of sales to related parties are comparable to those of sales to nonrelated parties, and the terms of collection are 60 days after the end of the month, which are not materially different from those of non-related parties.

• (3) Purchase

• 59 -

Type/Name of related party Subsidiary／New Lake Ltd. Subsidiary Associate Subsidiary of associate, Lucky Unique The general manager of the Company is the second degree of relative of chairman of the company／Future Power International Co., Ltd. Key management are directors of the company		2023 $ 183,974 50,476 3,716 3,086 193,703 11,455 $ 446,410		2022
				$ 743,593 484 31,783 6,963 - - $ 782,823

The Company does not have comparable purchase prices for similar products from related parties, and the payment period is approximately one to six months for related parties and one to three months for non-related parties.

(4) Amounts due from related parties (excluding loans to related parties)

Item Notes receivable- related parties Accounts receivable- related parties	Type/Name of related party Associate／Lucky Unique Subsidiary of associate, Lucky Unique／Tung Ming Company Subsidiary of associate, Lucky Unique／E Textile Company Subsidiary of associate, Lucky Unique Subsidiary Associate／Lucky Unique Subsidiary／New Lake Ltd. Subsidiary／Chadtex Company Subsidiary／Vietnam De Licacy Enterprise Subsidiary	December 31, 2023 $ 24,080 5,615 - - 290 $ 29,985 $ 24,180 - 11,015 80,544 104	December 31, 2022	December 31, 2022
				$ 25,934 16,043 4,875 53 277 $ 47,182 $ 20,704 6,943 6,856 - 2,098

(Continued)

• 60 -

(continued from the previous page)

Item Other receivables- related parties	Type/Name of related party Subsidiary of associate, Lucky Unique／De Kao Company Subsidiary of associate, Lucky Unique Subsidiary／New Lake Ltd. Subsidiary／Vi etnam De Licacy Enterprise Subsidiary／De Shen (Cayman) Company Subsidiary Associate Subsidiary of associate, Lucky Unique Key management are directors of the company／Future Tycoon Holdings Co., Ltd. The general manager of the Company is the second degree of relative of chairman of the company.	December 31, 2023 $ 3,438 4,510 $ 123,791 $ - 1,529 2,893 57 508 38 2,129 345 $ 7,499	December 31, 2022	December 31, 2022
				$ 9,002 7,135 $ 52,738 $ 17,295 168 - 116 1,159 31 1,641 - $ 20,410

No guarantees have been received for amounts due from related parties in circulation, and no allowance for losses has been provided for amounts due from related parties in 2023 and 2022.

• 61 -

(5) Amounts due to related parties (excluding loans from related parties)

Item Notes payable-related parties Accounts payable- related parties Other payables- related parties	Type/Name of related party Associate／Lucky Unique Subsidiary of associate, Lucky Unique／Tung Ming Company Subsidiary／New Lake Ltd. Subsidiary of associate, Lucky Unique／Tung Ming Company Associate Subsidiary The general manager of the Company is the second degree of relative of chairman of the company.／Future Power International Co., Ltd. Subsidiary Associate Subsidiary of associate, Lucky Unique Key management are directors of the company. The Chairman is the same person. The general manager of the Company is the second degree of relative of chairman of the company.	December 31, 2023 $ 12,397 41,194 $ 53,591 $ - 28,018 8,104 8,809 52,922 $ 97,853 $ 8,834 - 426 - 187 52 $ 9,499	December 31, 2022	December 31, 2022
				$ 13,464 64,138 $ 77,602 $ 266,081 26,008 11,858 297 - $ 304,244 $ 15,964 72 108 305 185 - $ 16,634

The outstanding balance due to related parties is unsecured and will be settled in cash.

(6) Acquisition of property, plant and equipment – 2023

settled in cash. cquisition of property, plant and equipment – 2023
Type of related party Subsidiary of associate, Lucky Uniqu Subsidiary	Consideration of the acquisition
		$ 1,800 2,450 $ 4,250

• 62 -

(6) Disposal of property, plant and equipment

	Proceeds	Proceeds	from disposal	from disposal	from disposal		Gain on disposal	Gain on disposal	Gain on disposal
Type/Name of relatedparty		2023		2022			2023		2022
Subsidiary	$	661	$	88		$	36	$	15
Associate／Lucky Unique		5,415			-		4,483		-
	$	6,076	$	88		$	4,519	$	15
Lease agreement
Type of relatedparty								2023
Acquisition of right-of-use	assets
The chairman of the Company is							$	1,398
the second degree of relative
of chairman of the company
(Note 2)

• (8) Lease agreement

December 31, Accounting item Type of related party 2023 Lease liabilities The chairman of the $ 1,057 Company is the second degree of relative of chairman of the company (Note 2)

Type of related party 2023 Interest expense The chairman of the Company is $ 19 the second degree of relative of chairman of the company (Note 2)

The determination of rent and collection in the lease contracts between the Company and related parties are the same as general lease transactions.

(9) Operating lease – for rent

(9) Operating lease – for rent
Type/Name of related party Associate／Lucky Unique Associate／Lucky Unique Subsidiary／De Fa Company Subsidiary／Futures Co., Ltd. The Chairman is the same person The Chairman of the Company is a director of the company	Rent objective Plant Office Office Office Plant roof (Note) Plant roof (Note)	Leasing period
		January 2021 to December 2023 July 2020 to March 2023 April 2019 to March 2025 May 2020 to March 2022 October 2017 to October 2037 October 2017 to October 2037

Note: The Company leased the roof of the plant to related party for solar power generation at a rent of 7% of the sales revenue of the solar power system.

The total lease payments to be received in the future are summarized as follows:

• 63 -

Type/Name of related party Associate／Lucky Unique Subsidiary／De Fa Company	December 31, 2023 $ - 3,837 $ 3,837	December 31, 2022	December 31, 2022
			$ 2,620 6,906 $ 9,526

Summary of leasing revenue as below: Type/Name of related party 2023 Subsidiary／De Fa Company $ 3,069 Subsidiary - Associate／Lucky Unique 2,620 The Chairman is the same person 105 The Chairman of the Company is a director of the company 354 $ 6,148		2022
		$ 3,034 206 7,239 107 365 $ 10,951

The guaranteed deposits received for leasing offices to the subsidiary, De Fa Company, amounted to both $658 thousand, as of December 31, 2023 and 2022.

• (10) Loans to related parties

Type/Name of related party Interest income Subsidiary Interest rate		2023 $ 26 3.5%		2022
				$ 2,889 2.8%

• (11) Borrowings from related parties

Borrowings from related parties
Type/Name of related party Subsidiary De Licacy BVI Holdings De Licacy Samoa Company Best Alliance Limited De Shen (Cayman) Company	December 31, 2023 $ 70,622 181,160 - 423,729 $ 675,511	December 31, 2022
			$ 70,633 - 82,917 92,130 $ 245,680

The Company’s borrowings from related parties bear interest rates. All loans are unsecured loans.

• (12) Endorsements/guarantees

Endorsement and guarantee for others

Type of related party Subsidiary Guaranteed amount Actual usage amount	December 31, 2023 $ 4,008,080 ( 1,965,287) $ 2,042,793	December 31, 2022	December 31, 2022
	(	(	$ 3,925,685 1,729,915) $ 2,195,770

• 64 -

Endorsement and guarantee by others

Part of the long-term and short-term loans of the Company as of December 31, 2023 and 2022 were endorsements/guarantees provided by key management of the Company, the Chairman, Yeh, Chia-Ming.

• (13) Other related-party transactions

• Processing fees

The Company pays the related party’s entrusted processing fee, which is recorded as operation cost according to its nature, none of similar products processing price can be compared, and the payment terms are monthly for 1 to 3 months.

Type of related party Subsidiary of associate, Lucky Unique Subsidiary Associate The general manager of the Company is the second degree of relative of chairman of the company.		2023 $ 187,294 4,342 124,209 48,564 $ 364,409		2022
				$ 334,580 3,633 126,929 - $ 465,142

1. Manufacturing and operating expense

The Company’s expenses for purchasing samples from related parties, renting sample display rooms, dyeing and finishing factory lines and plants, paying commissions, and purchasing gifts were as follows:

Type/Name of related party Subsidiary／Chadtex Company Associate Subsidiary of associate, Lucky Unique The general manager of the Company is the second degree of relative of chairman of the company. Key management are directors of the company The chairman of the Company is the second degree of relative of chairman of the company.		2023 $ 161,117 740 839 736 157 360 $ 163,949		2022
				$ 207,760 821 989 - - - $ 209,570

1. Other income

2. 65 -

The income from counseling services and handling fee for providing endorsements/guarantees to the related parties were as follows:

Type/Name of related party 2023 Subsidiary $ 13,036 Associate 5,361 Subsidiary of associate, Lucky Unique 584 Key management are directors of the company ／Future Tycoon Holdings Co., Ltd. 7,891 The general manager of the Company is the second degree of relative of chairman of the company. 2,767 $ 29,639 (14) Remuneration to key management personnel 2023 Short-term employee benefits $ 10,398 Post-employment benefits - $ 10,398				2022
				$ 10,910 5,025 380 9,099 - $ 25,414 2022
			$ 17,646 104 $ 17,750

The remuneration of directors and other key management personnel is determined by the Remuneration Committee based on the current year's operating results and the base of year-end bonuses paid in previous years.

32. Pledged assets

The following assets of the Company have been provided as collateral for bank loans or performance guarantee for subsidized projects:

or performance guarantee for subsidized	projects:
Land Buildings Machinery equipment Pledged bank deposits (classified as financial assets at amortized cost-current and non-current)	December 31, 2023 $ 266,446 106,287 9,028 815,153 $ 1,196,914	December 31, 2022
			$ 266,446 105,206 11,607 2,691,498 $ 3,074,757

33. Significant contingent liabilities and unrecognized contractual commitments

Except as mentioned in other notes, the Company’s significant commitments and contingencies as of the balance sheet date are as follows:

• (1) As of December 31, 2023 and 2022, the Company had issued for the purchase of raw material and unused letter of credit balance of $8,300 thousand and $32,934 thousand, respectively.

• (2) The Company’s unrecognized contractual commitments are as follows:

December 31, 2023 December 31, 2022

Purchase of property, plant and equipment $ 16,720 $ 23,185

• 66 -

• (3) As of December 31, 2023 and 2022, the Company provided bot $399,000 thousand in guaranteed notes for the purchase of raw materials and to provide guarantees for borrowing lines from financial institutions.

• Information on foreign currency assets and liabilities with significant impacts

The following information is presented in the aggregate in foreign currencies other than the functional currency of each of the consolidated companies. Assets and liabilities denominated in foreign currencies that have a significant effect are as follows:

(In thousands of foreign currencies and NTD)

December 31, 2023

December 31, 2023
Foreign currencyassets Monetary item USD Foreign currencyliabilities Monetary item USD December 31, 2022 Foreign currencyassets Monetary item USD Foreign currencyliabilities Monetary item USD	Foreign currency $ 43,383 22,617 Foreign currency $ 103,359 17,613	Foreign exchange rate 30.705 (USD:NTD) 30.705 (USD:NTD) Foreign exchange rate 30.71 (USD:NTD) 30.71 (USD:NTD)	Carryingamount
			$ 1,332,071 694,466 Carryingamount
			$ 3,174,167 540,882

Foreign currency exchange gains and losses (realized and unrealized) with significant effect are as follows:

Currency USD	2023	Net foreign exchangegains $ 21,977	2022
	Foreign exchange rate 31.155(USD:NTD)		Foreign exchange rate 29.805(USD:NTD)	Net foreign exchange loss
					$ 335,516

1. Matters disclosed in the notes

(1) Information on significant transactions

• 67 -

• Loans of funds to others: Schedule 1.

• Endorsement and guarantee for others: Schedule 2.

• Marketable securities held at the end of the period (excluding investments in subsidiaries and associates): Schedule 3.

• Cumulative purchase or sale of market securities amounting to at least $300 million or 20% of the paid-in capital: None.

• Acquisition of real estate amounting to at least $300 million or 20% of the paid-in capital: None.

• Disposal of real estate amounting to at least $300 million or 20% of the paid-in capital: None.

• Purchase from or sale to related parties amounting to at least $100 million or 20% of the paid-in capital: Schedule 4.

• Receivables from related parties amounting to at least $100 million or 20% of the paid-in capital: Schedule 5.

• Derivative transactions: Note 7.

• (2) Information about reinvestment business: Schedule 6.

• (3) Information on investees in Mainland China:

• Name of the investee company in, main business items, paid-in capital, investment method, capital remittance, shareholding, investment gain or loss, closing balance of investment, repatriated investment gain or loss, and investment limit in China: Schedule 7.

• Significant transactions with the investee company in China, directly or indirectly through a third country, and the prices, terms of payment, and unrealized gains or losses:

  • (1) The balance and percentages of import amounts and related payables at the end of the period: Schedule 8.

  • (2) Amounts and percentages of sales and related receivables: Schedule 8.

  • (3) Amount of property transactions and the amount of resulting gain or loss: None.

  • (4) End-of-period balance and purpose of guarantees or collaterals provided: Schedule 2.

  • (5) Maximum balance, ending balance, interest rate range, and total current interest on financial instruments: Schedule 1.

• 68 -

• (6) Other transactions that have a significant effect on current income or financial position, such as the provision or receipt of labor services: None.

• (4) Major shareholder information: name, amount and percentage of shares held by shareholders with at least 5% ownership: Schedule 9.

• 69 -

De Licacy Industrial Co., Ltd. and Subsidiaries Loans of funds to others

For the Year Ended December 31, 2023

Schedule 1 (In Thousands of New Taiwan Dollars)

No.	Loan funded by	Loan recipients	Current accounts	Is a related party	Highest balance for the period	Closing balance	Actual expenditures	Interest rate range (%)	Nature of funds lending	Business transactions (Note 3)	Reasons of short-term financing funds	Allowance for bad debts	Collateral	Collateral	Amount limit for individual funds lending (Notes 1 & 6)	Total limit of capital loan (Notes 2 & 6)
													Name	Value
0 1 2 3 4 5 6 7 8 9 10 11 12	The Company The Company De Licacy Samoa Company De Licacy Samoa Company De Licacy Samoa Company De Licacy Samoa Company De Licacy Samoa Company De Licacy Samoa Company De Licacy Samoa Company De Licacy Samoa Company De Shen (Cayman) Company De Shen (Cayman) Company De Shen (Cayman) Company De Shen (Cayman) Company De Shen (Cayman) Company De Shen (Cayman) Company De Hong Company Hangzhou De Licacy Limited Hangzhou De Licacy Limited Hangzhou De Licacy Limited Hangzhou De Licacy Limited Hangzhou De Licacy Limited Hangzhou De Licacy Limited Best Alliance Limited Best Alliance Limited New Lake Ltd. New Lake Ltd. New Lake Ltd. Chadtex Company Baiweideng Holding Ltd. Baiweideng Holding Ltd. De Licacy BVI Holdings De Fa Company Hong Kong Eden Road Limited Nantong De Licacy Limited	Chadtex Company Hangzhou De Licacy Limited Vietnam De Licacy Enterprise Vietnam De Licacy Enterprise Vietnam De Licacy Enterprise Vietnam De Licacy Enterprise Vietnam De Licacy Enterprise Vietnam De Licacy Enterprise New Lake Ltd. The Company Vietnam De Licacy Enterprise Vietnam De Licacy Enterprise Vietnam De Licacy Enterprise Vietnam De Licacy Enterprise Vietnam De Licacy Enterprise The Company De Hong (Vietnam) Company Apex Textile Company Apex Textile Company Apex Textile Company Apex (Anqing) Company (Note 7) Nantong De Licacy Limited Nantong De Licacy Limited Vietnam De Licacy Enterprise The Company Vietnam De Licacy Enterprise Vietnam De Licacy Enterprise Vietnam De Licacy Enterprise Chia Her Industrial Co., Ltd. Best Alliance Limited Total Express Ltd. The Company Best Alliance Limited Best Alliance Limited Hangzhou De Licacy Limited	Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Temporary payments Temporary payments Temporary payments Temporary payments Temporary payments Temporary payments Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Temporary payments	Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y	$ 80,000 161,350 18,426 36,852 555,044 52,207 367,878 214,935 307,100 193,620 30,710 153,550 307,100 76,775 192,964 491,962 18,426 88,624 (Note 4) 134,838 (Note 4) 44,150 132,282 (Note 4) 44,946 (Note 4) 22,075 297,887 82,917 24,568 30,710 92,130 100,000 74,221 9,326 74,221 33,884 46,792 132,450	$ - - - - 528,126 - 165,807 214,935 - 184,230 - - - - 147,384 454,434 9,212 - - 43,352 (Note 4) - 43,352 (Note 4) 21,676 (Note 4) - - - - - 30,000 70,622 8,874 70,622 32,240 44,522 129,810	$ - - - - 528,126 - 128,961 214,935 - 181,160 - - - - 147,384 423,729 9,212 - - 43,352 (Note 4) - 43,352 (Note 4) 21,676 (Note 4) - - - - - 20,000 70,622 8,874 70,622 32,240 44,522 86,540	3.5 6.60 2.8 3.8 6.5 4.3 6 5 - - 2.5 4 5 6 6.5 - 2.5 4.05 3.7 3.6 4.05 3.6 3.45 4 - 4 5 6 7 - - - 5 5 3.45	Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing	$ - - - - - - - - - - - - - - - - - - - - - - - -	Operating revolving fund Operating revolving fund Operating revolving fund Operating revolving fund Operating revolving fund Operating revolving fund Operating revolving fund Operating revolving fund Operating revolving fund Operating revolving fund Operating revolving fund Operating revolving fund Operating revolving fund Operating revolving fund Operating revolving fund Operating revolving fund Operating revolving fund Operating revolving fund Operating revolving fund Operating revolving fund Operating revolving fund Operating revolving fund Operating revolving fund Operating revolving fund Operating revolving fund Operating revolving fund Operating revolving fund Operating revolving fund Operating revolving fund Operating revolving fund Operating revolving fund Operating revolving fund Operating revolving fund Operating revolving fund Operating revolving fund	$ - - - - - - - - - - - - - - - - - - - - - - - -	None None None None None None None None None None None None None None None None None None None None None None None None None None None None None None None None None None None	$ - - - - - - - - - - - - - - - - - - - - - - - -	$ 1,501,503 1,501,503 1,226,250 1,226,250 1,226,250 1,226,250 1,226,250 1,226,250 1,226,250 1,226,250 975,175 975,175 975,175 975,175 975,175 975,175 20,792 203,012 203,012 203,012 203,012 203,012 203,012 687,931 687,931 15,246 15,246 15,246 72,048 207,864 207,864 994,147 39,753 64,715 356,282	$ 2,002,004 2,002,004 1,635,000 1,635,000 1,635,000 1,635,000 1,635,000 1,635,000 1,635,000 1,635,000 1,300,234 1,300,234 1,300,234 1,300,234 1,300,234 1,300,234 27,723 270,682 270,682 270,682 270,682 270,682 270,682 917,242 917,242 15,246 15,246 15,246 96,064 277,152 277,152 1,325,529 53,004 64,715 475,043

Note 1: Based on 30% of the net equity of each lending company and the amount of business transactions in the previous year. Note 2: Based on 40% of the net equity of each lending company and the amount of business transactions in the previous year.

Note 3: Based on the amount of business transactions in the previous year.

Note 4: The difference from the announcement is the adjustment of foreign currency exchange gain or loss at the end of the period.

Note 5: Chia Her Industrial Co., Ltd. is a significant investor to Chadtex Company.

Note 6: The total amount of loans to other parties provided by New Lake Ltd. and Hong Kong Eden Road Limited shall not exceed 40% of net worth of the Company. The loan limits to individual company are as follows:

(1) The total amount to one entity which has business transactions with the Company shall not exceed the total amount of the business transactions.

• (2) For short-term financing needs, the amount available for financing of each entity shall not exceed 30% of the Company net worth.

(3) For those foreign subsidiaries in which the Company and their parent companies or the Company, directly or indirectly, owned 100% of their shares, the amount available for short-term financing needs is not limited to 40% of the Company net worth, but shall not exceed the total amount of the Company’s net worth.

Note 7: It was the subsidiary of the Company before December 2022.

• 70 -

(In Thousands of New Taiwan Dollars)

De Licacy Industrial Co., Ltd. and Subsidiaries

Endorsement and guarantee for others

For the Year Ended December 31, 2023

Schedule 2

No.	Name of guarantor and endorsements	Counter party of endorsements/guarantees	Counter party of endorsements/guarantees	Limitation on amount of endorsements/guarantees for a specific enterprise (Note 1)	Highest balance for endorsements /guarantees during the period	Balance of endorsements /guarantees as of reporting date	Actual usage amount during the period	Property pledged for endorsements /guarantees	Ratio of accumulated amounts of endorsements/guarant ees to net worth of the latest financial statements (%)	Maximum amount for endorsements /guarantees (Note 2)	Parent company endorsement s/guarantees to third parties on behalf of subsidiary	Subsidiary endorsement s/guarantees to third parties on behalf of the parent company	Endorsement s /guarantees to third parties on behalf of companies in Mainland China
		Company name	Relationship with the Company
0	The Company The Company The Company The Company The Company The Company The Company The Company The Company	New Lake Ltd. De Fa Company Chadtex Company Vietnam De Licacy Enterprise De Shen (Cayman) Company Apex Textile Company Hangzhou De Licacy Limited Hong Kong Eden Road Limited Nantong De Licacy Limited	Subsidiary (Indirect shareholding 100%) Subsidiary (Direct shareholding 100%) Subsidiary (Direct shareholding 55.06%) Subsidiary (Indirect shareholding 100%) Subsidiary (Indirect shareholding 100%) Subsidiary (Indirect shareholding 61.71%) Subsidiary (Indirect shareholding 100%) Subsidiary (Indirect shareholding 100%) Subsidiary (Indirect shareholding 100%)	$ 2,502,505 2,502,505 2,502,505 2,502,505 2,502,505 2,502,505 2,502,505 2,502,505 2,502,505	$ 1,058,760 191,420 135,000 1,602,365 1,000,370 243,705 49,310 280,260 886,200	$ 276,345 50,000 135,000 1,524,898 951,855 - 5,000 199,582 865,400	$ - - 45,000 386,961 706,215 - 5,000 - 822,111	$ - - - - - - - - -	6 1 3 30 19 - - 4 17	$ 7,507,516 7,507,516 7,507,516 7,507,516 7,507,516 7,507,516 7,507,516 7,507,516 7,507,516	Y Y Y Y Y Y Y Y Y	N N N N N N N N N	N N N N N Y Y N Y

Note 1: Based on 50% of the total equity of the owners of each endorsing company.

Note 2: Based on 150% of the total equity of the owners of each endorsing company.

• 71 -

Schedule 3

(In Thousands of New Taiwan Dollars)

De Licacy Industrial Co., Ltd. and Subsidiaries

Year-end marketable securities breakdown statement

December 31, 2023

Name of holder	Type and name of marketable securities	Relationship with the Company	Account title		December 31, 2022	December 31, 2022		Note
				Unit/Share	Carrying amount	Percentage (%)	Fair value
The Company De Fa Company Chadtex Company Chadtex Company Chadtex Company Chadtex Company Chadtex Company Chadtex Company Chadtex Company Chadtex Company Chadtex Company The Company The Company	Stocks Chia Her Industrial Co., Ltd. Hua Nan Financial Holdings Co., Ltd. TSRC Corporation Far Eastern International Bank CHING FENG HOME FASHIONS CO., LTD. Cheng Loong Corp. NANTEX INDUSTRY CO., LTD. Chia Her Industrial Co., Ltd. WEIKENG INDUSTRIAL CO., LTD. TAIWAN BUSINESS BANK, LTD. Hon Hai Precision Industry Co., Ltd. Fund beneficiary certificates Hua Nan－Saudi Arabian National Oil Fund Mega Bank－Taishin Flexible Income Fund	None None None None None None None None None None None None None	Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through profit or loss-current Financial assets at fair value through other comprehensive income-current Financial assets at fair value through other comprehensive income-current Financial assets at fair value through other comprehensive income-current Financial assets at fair value through other comprehensive income-current Financial assets at fair value through other comprehensive income-current Financial assets at fair value through other comprehensive income-current Financial assets at fair value through other comprehensive income-current Financial assets at fair value through other comprehensive income-current Financial assets at fair value through other comprehensive income-current Financial assets at fair value through profit or loss-current Financial assets at fair value through profit or loss-current	15,000 166,080 679,000 2,687,710 328,500 660,000 920,000 1,365,036 807,000 879,472 130,000 285,000 600,000	$ 302 3,712 16,364 34,000 7,309 19,635 34,592 27,505 23,322 12,049 13,585 7,818 6,008	0.018 0.001 0.082 0.066 0.189 0.060 0.187 1.607 0.189 0.011 0.001 - -	$ 302 3,712 16,364 34,000 7,309 19,635 34,592 27,505 23,322 12,049 13,585 7,818 6,008

Note 1: The marketable securities mentioned in this Schedule refer to stocks, bonds, beneficiary certificates and marketable securities derived from the above items within the scope of IFRS 9 “Financial Instruments”. Note 2: For information on investments in Subsidiaries, please refer to Schedule 6 and Schedule 7.

• 72 -

De Licacy Industrial Co., Ltd. and Subsidiaries

Purchase from or sale to related parties amounting to at least $100 million or 20% of the paid-in capital

For the Year Ended December 31, 2023

Schedule 4

(In Thousands of New Taiwan Dollars)

Buying (selling) company	Trading partners	Relationship		Transactions	Transactions		Circumstances and reasons of transaction conditions are different from general transactions	Circumstances and reasons of transaction conditions are different from general transactions	Notes and accounts receivable (payable)	Notes and accounts receivable (payable)	Note
			Purchase (Sales)	Amount	Percentage of total purchase (sales) (%)	Credit period	Unit price (Note 1)	Credit period	Balance	Percentage of total receivables (payables) (%)
The Company The Company The Company The Company De Fa Company Hong Kong Eden Road Limited Hangzhou De Licacy Limited Apex Textile Company Apex Textile Company New Lake Ltd. New Lake Ltd. Vietnam De Licacy Enterprise	New Lake Ltd. Vietnam De Licacy Enterprise Future Power International Co., Ltd. (Note 3) Lucky Unique Nantong De Licacy Limited De Fa Company De Fa Company Total Express Ltd. Apex (Anqing) Company (Note 2) Vietnam De Licacy Enterprise Vietnam De Licacy Enterprise Future Tycoon Enterprise Co., Ltd.	Subsidiary Subsidiary The general manager of the Company is the second degree relative of the chairman of the company. The same ultimate parent company The same ultimate parent company The same ultimate parent company The same ultimate parent company Associate The vice chairman of the Company is the major shareholder of the company. The same ultimate parent company The same ultimate parent company Key management are directors of the company	Purchase (Sales) Purchase (Sales) (Sales) Purchase (Sales) (Sales) Purchase (Sales) Purchase (Sales)	$ 183,974 ( 256,187 ) 193,703 ( 276,881 ) ( 137,760 ) 409,737 ( 326,168 ) ( 1,622,911 ) 730,033 ( 142,535 ) 562,554 ( 103,922 )	12 7 12 8 24 97 27 82 43 16 67 3	Open account 30- 90 days Open account 30- 90 days Open account 30- 90 days Open account 30- 90 days Open account 90 days Open account 90 days Open account 90 days Open account 90 days Open account 90 days Open account 90 days Open account 120 days Open account 120 days	Not applicable 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞	General open account 30-90 days General open account 30-60 days General open account 30-90 days General open account 30-60 days No general suppliers available for comparison No general suppliers available for comparison General open account 30-90 days General open account 30-90 days General open account 30-90 days General open account 30-60 days General open account 30 days General open account 30-60 days	$ - 80,544 ( 52,922 ) 48,260 77,651 ( 3,564 ) 25,271 - - 625 ( 8,260 ) -	- 16 17 10 96 81 9 - - 25 100 -

Note 1: The purchase price is not comparable to the general purchase price of similar products; the sales price is comparable to the general customers. Note 2: It was the subsidiary of the Company before December 2022. Note 3: It became the related party of the Company after June 14, 2023.

• 73 -

De Licacy Industrial Co., Ltd. and Subsidiaries

Receivables from Related Parties Amounting to At Least $100 Million or 20% of the Paid-in Capital

December 31, 2023

Schedule 5

(In Thousands of New Taiwan Dollars)

Name of company	Counter-party	Nature of relationship	Ending balance	Turnover rate (%)		Overdue	Amounts due from related parties recovered in subsequent period	Allowance for bad debts
					Amount	Handling
De Shen (Cayman) Company De Shen (Cayman) Company Hangzhou De Licacy Limited Hangzhou De Licacy Limited De Licacy Samoa Company De Licacy Samoa Company	The Company Vietnam De Licacy Enterprise Apex Textile Company Nantong De Licacy Limited Vietnam De Licacy Enterprise The Company	Parent company Subsidiary The same ultimate parent company The same ultimate parent company The same ultimate parent company Parent company	$ 423,729 151,452 191,761 134,241 908,999 185,523	(Note 1) (Note 2) 8.9 (Note 3) 1.82 (Note 4) (Note 2) 2.07 (Note 5)	$ - - - - - -	－ － － － － －	$ 30,705 - 134 448 6,141 139,954	$ - - - - - -

Note 1: All of them are receivables arising from capital loans, which are not included in the calculation of the turnover rate. Note 2: All of them are receivables arising from capital loans and interest, which are not included in the calculation of the turnover rate.

Note 3: $43,486 thousand are receivables arising from capital loans and interest, and $147,152 thousand are receivables arising from sale of investment properties, which are not included in the calculation of the turnover rate. Note 4: $65,476 thousand are receivables arising from capital loans and interest, which are not included in the calculation of the turnover rate. Note 5: $181,160 thousand are receivables arising from capital loans and interest, which are not included in the calculation of the turnover rate.

• 74 -

Schedule 6

De Licacy Industrial Co., Ltd. and Subsidiaries

Information of the Invested Company, Location ... and Other Related Information

For the Year Ended December 31, 2023

(In Thousands of New Taiwan Dollars) (Except US Dollars)

Name of investment company	Investee company name	Location	Major business scope	Original investment	Original investment	Held at period-end	Held at period-end	Held at period-end	Investee income (loss) for the period	Recognized investment income (loss) (Note 1)	Note
				End of the current period	End of the last period	Shares	Percentage (%)	Carrying amount
The Company The Company The Company The Company The Company The Company De Fa Company De Licacy Samoa Company De Licacy Samoa Company De Licacy Samoa Company De Licacy Samoa Company De Licacy Samoa Company De Licacy Samoa Company De Hong Company Best Alliance Limited Best Alliance Limited Bright Wisdom Ltd. Bright Wisdom Ltd. De Licacy BVI Holdings De Shen (Cayman) Company Vantage Gain Limited View Best Global Limited Beauty Plus Limited	De Licacy Samoa Company Lucky Unique De Fa Company Chadtex Company De Licacy BVI Holdings View Best Global Limited Eden Road Limited Best Alliance Limited Vantage Gain Limited De Licacy Anguilla Company De Hong Company New Lake Ltd. Beauty Plus Limited De Hong (Vietnam) Company Bright Wisdom Ltd. Hong Kong Eden Road Limited Total Express Ltd. Futures Co., Ltd. De Shen (Cayman) Company Vietnam De Licacy Enterprise Perfect Step Ltd. Vietnam ATAGO Company Sung Yu Company	Samoa Taiwan Taiwan Taiwan British Virgin Islands Samoa British Virgin Islands British Virgin Islands Samoa Anguilla Samoa Anguilla British Virgin Islands Vietnam Samoa Hong Kong Seychelles Taiwan Cayman Islands Vietnam British Virgin Islands Vietnam British Virgin Islands	General investment Manufacture and processing of various fiber textile products General import and export trade Textile manufacturing, dyeing and finishing, and trading of various textile products General investment General investment General import and export trade General investment General investment General investment General investment General import and export trade General investment Printing and finishing of various types of garments and cloths General investment General import and export trade International trade business General import and export trade General investment Printing, dyeing, finishing, garment manufacturing and trading of various textile and yarn materials General investment Garment manufacturing and trading General investment	$ 1,829,899 174,329 59,878 94,745 USD 108,040,000 USD 1,935,000 16,710 USD 46,900,000 USD 9,710,267 USD 3,505,000 USD 1,800,000 USD 100,000 USD 12,408,513 USD 2,500,000 USD 8,021,667 USD 50,000 USD 1 10,000 USD 108,032,701 USD 114,660,489.5 USD 13,227,497 USD 1,915,070 USD 14,388,289	$ 1,829,899 174,329 59,878 177,335 USD 108,040,000 USD 1,935,000 16,710 USD 62,900,000 USD 9,702,934 USD 3,505,000 USD 1,800,000 USD 6,100,000 USD 12,098,738 USD 2,500,000 USD 8,021,667 USD 50,000 USD 1 10,000 USD 108,032,701 USD 114,660,489.5 USD 13,227,497 USD 1,915,070 USD 14,023,848	59,404,382 14,172,613 5,500,000 10,672,033 27,010 1,935,000 639,000 46,900,000 9,710,267 3,505,000 1,800,000 100,000 12,408,513 - 8,021,667 50,000 1 1,000,000 108,032,700,860 - 13,227,497 - 38	100 23.62 100 55.06 100 100 100 100 73.33 100 50 100 85 100 61.71 100 100 100 100 100 20 30 38	$ 3,992,413 175,271 97,205 131,593 3,313,673 28,602 20,100 2,325,261 259,845 931 34,654 15,246 316,690 60,551 439,987 64,715 268,518 10,364 3,250,585 3,343,116 354,201 28,157 367,642	( $ 49,911 ) ( 143,586 ) 71,442 2,966 118,397 9,994 ( 133 ) ( 85,039 ) ( 84 ) ( 72 ) ( 11,878 ) ( 8,697 ) ( 11,638 ) ( 5,530 ) 181,527 63,143 125,837 ( 175 ) 118,510 136,897 6 33,414 ( 30,070 )	( $ 46,012 ) ( 30,204 ) 36,108 1,776 121,083 9,994	The difference is recognition of realized gains on disposal of investment property and (un)realized gain on disposal of property, plant and equipment. The difference is recognition of effects among inter-group lease gains or losses and unrealized gains on disposal of fixed assets. The difference is recognition of (un)realized sales profit and loss and gain on disposal of property, plant and equipment. The difference is recognition of realized gain on disposal of property, plant and equipment.

Note 1: Only the amount of profit or loss recognized for each subsidiary directly invested by the Company and each investee company using the equity method shall be shown.

Note 2: Please refer to Schedule 7 for the information about investees in Mainland China.

• 75 -

Schedule 7

De Licacy Industrial Co., Ltd. and Subsidiaries Mainland investment information

For the Year Ended December 31, 2023

(In Thousands of New Taiwan Dollars)

(Except US Dollars)

Name of investee	Main business and products	Main business and products	Total amount of paid-in capital (Note 3)	Total amount of paid-in capital (Note 3)	Method of investment (Note 6)	Accumulated outflow of investment from Taiwan as of January 1, 2021 (Note 3)	Accumulated outflow of investment from Taiwan as of January 1, 2021 (Note 3)	Investment flows during the period	Investment flows during the period	Investment Information in Mainland China (Note 3)	Net income (loss) of the investee	Ownership of direct or indirect investment (％)	Investment gain (loss) (Note 1)	Carrying amount as of December 31, 2022 (Note 1)	Accumulated repatriation of investment income as of December 31, 2022
								Outflow	Inflow
Hangzhou De Licacy Limited Apex Textile Company Shanghai De Licacy Company Nantong De Licacy Limited	Production and sales of long and short fiber fabric processing and finishing Manufacture and sale of textile products and dyeing and finishing General investment Production and sales of long and short fiber fabric processing and finishing		$ 829,035 (USD 27,000,000) 399,165 (USD 13,000,000) 1,696,451 (USD 55,250,000) 1,228,200 (USD 40,000,000)		3.Best Alliance Limited 3.Bright Wisdom Ltd. 3. Sin Hao Company, Samoa Sin Young International Limited 3.Best Alliance Limited	$ 1,342,337 (Note 4) (USD 18,289,091 and $ 780,770) 127,515 (USD 3,000,000 and $ 35,400) 62,945 (USD 2,050,000) 460,575 (USD 15,000,000)		$ - - - -	$ - - - -	$ 1,342,337 (Note 4) (USD 18,289,091 and $ 780,770) 127,515 (USD 3,000,000 and $ 35,400) 62,945 (USD 2,050,000) 460,575 (USD 15,000,000)	( $ 366,566 ) 55,757 - ( 5,665 )	100 61.71 14.67 100	( $ 253,655 ) (Note 5) 34,405 - ( 5,665 )	$ 739,614 206,533 38,079 1,187,609	$ - - - -
Company name		Accumulated investment in Mainland China as of December 31, 2021 (Note 3)		Investment amount authorized by the Investment Commission, MOEA (Note 3)			Investment quota in China according to the Investment Commission, MOEA
Hangzhou De Licacy Limited Apex Textile Company Shanghai De Licacy Company Nantong De Licacy Limited		$ 1,342,337 (USD 18,289,091and $ 780,770) $ 127,515 (USD 3,000,000and $ 35,400) $ 62,945 (USD 2,050,000) $ 460,575 (USD 15,000,000)		$ 1,342,337 (USD 18,289,091and $ 780,770) $ 127,515 (USD 3,000,000and $ 35,400) $ 385,348 (USD 12,550,000) $ 1,228,200 (USD 40,000,000)			(Note 2) (Note 2) (Note 2) (Note 2)

Note 1: Recognized based on the financial statements of the investee company audited by the parent company’s certified public accountants in Taiwan during the same period.

Note 2: In accordance with the newly revised “Regulations Governing the Examination of Investment or Technical Cooperation in Mainland China” dated August 29, 2018, the Company obtained the certificate issued by the Industrial Development Bureau, Ministry of Economic Affairs on March 24, 2021, which conforms to the scope of operation of the Ministry of Manufacturing Operations, so the calculation of investment limit is not required.

Note 3: The related amount was translated at foreign exchange rate of $30.705 per USD at the end of period.

Note 4: Including the recognition of De Yi Company’s investment of $120,336 (USD3,919,091) in Hangzhou Deli by way of debt in proportion to its shareholding.

Note 5: The difference is the unrealized gain or loss on disposal of property, plant and equipment and investment of real property.

Note 6: (1) Investment in Mainland China through third-party remittance.

(2) Investment in Mainland China through a third-party company.

(3) Reinvestment in Mainland China through reinvestment in an existing company in a third region.

• 76 -

De Licacy Industrial Co., Ltd. and Subsidiaries

Significant Transactions with China Investees Directly or Indirectly through Third Regions, the Prices, Payment Terms, and Unrealized Gains or Losses

For the Year Ended December 31, 2023

				For the Year	Ended December 31,	2023
Schedule 8								(In Thousands of New Taiwan Dollars)
Company	Trading partners	Relationship with transaction partner	Transaction type	Amount		Balance		Notes and accounts receivable (payable)		Unrealized income (loss)
					Price	Payment erm	Comparison with general transactions	Balance	Percentage (%)
De Fa Company De Fa Company Total Express Ltd. Futures Co., Ltd. Hong Kong Eden Road Limited	Hangzhou De Licacy Limited Hangzhou De Licacy Limited Nantong De Licacy Limited Apex Textile Company Apex Textile Company Hangzhou De Licacy Limited	The same ultimate parent company The same ultimate parent company The same ultimate parent company The same ultimate parent company The same ultimate parent company The same ultimate parent company	Purchase Sales Sales Purchase Sales Purchase	$ 326,168 16,885 137,760 1,622,911 17,089 7,949	Trade at general price Trade at general price Trade at general price Trade at general price Trade at general price Trade at general price	Open account 90 days Open account 120 days Open account 90 days Open account 90 days Open account 90 days Open account 90 days	General open account 30-150 days No general suppliers available for comparison No general suppliers available for comparison No general suppliers available for comparison No general suppliers available for comparison No general suppliers available for comparison	( $ 25,271 ) 3 77,651 - - -	69 - 96 - - -	$ - - 29,253 - - -

• 77 -

De Licacy Industrial Co., Ltd. Major shareholders information December 31, 2023

Schedule 9

Names of major shareholders	Shares	Shares
	Shareholding (shares)	Shareholding ratio
Fu-Fa International Investment Co. Ltd. Fu-Hwa Investment Co. Ltd. Fuson International Trade Co. Ltd.	33,144,151 31,801,053 31,800,469	8.13% 7.8% 7.8%

• Note 1: The information on major shareholders in this Schedule is based on the last business day of the quarter in which the shareholders held 5% or more of the Company’s total common shares that have been delivered without physical registration. The share capital in the consolidated financial statements may differ from the actual number of shares delivered without physical registration due to differences in the basis of computation.

• Note 2: The above information is revealed by the trustee’s individual subaccount of the trust account opened by the trustee if the shareholder has delivered the shares to the trust. As for the shareholders’ shareholding of more than 10% of insider shares reported under the Securities and Exchange Act, the shareholdings include the shareholdings of the shareholders plus the shares delivered to the trust and the shareholder has the right to decide the use of the trust property, etc. Please refer to the Market Observation Post system for the information on insiders’ shareholding report.

• 78 -

De Licacy Industrial Co., Ltd. and Subsidiaries

Property, plant and equipment

For the Years Ended December 31, 2023 and 2022

Schedule 10

(In Thousands of New Taiwan Dollars)

Cost Balance at 1 January 2022 Additions Disposal Reclassification Balance at December 31, 2022 Accumulated depreciation and impairment Balance at 1 January 2022 Depreciation expenses Disposal Balance at December 31, 2022 Net at December 31, 2022 Cost Balance at 1 January 2023 Additions Disposal Reclassification Balance at December 31, 2023 Accumulated depreciation and impairment Balance at 1 January 2022 Depreciation expenses Disposal Balance at December 31, 2022 Net at December 31, 2022		Owned land $ 293,975 - - - $ 293,975 $ - - - $ - $ 293,975 $ 293,975 - - - $ 293,975 $ - - - $ - $ 293,975	Landimprovements $ 11,310 - - - $ 11,310 $ 9,742 458 - $ 10,200 $ 1,110 $ 11,310 - - - $ 11,310 $ 10,200 241 - $ 10,441 $ 869		Buildings $ 770,659 - - - $ 770,659 $ 541,749 18,954 - $ 560,703 $ 209,956 $ 770,659 336 - 85 $ 771,080 $ 560,703 18,958 - $ 579,661 $ 191,419		Machinery equipment $ 1,326,781 85,448 21,571 ) 4,404 $ 1,395,062 $ 1,098,001 68,870 21,571) $ 1,145,300 $ 249,762 $ 1,395,062 14,864 149,296 ) 5,938 $ 1,266,568 $ 1,145,300 59,495 135,054) $ 1,069,741 $ 196,827	Transportation equipment $ 12,865 1,056 ( 630 ) 495 $ 13,786 $ 11,916 441 ( 630) $ 11,727 $ 2,059 $ 13,786 - - - $ 13,786 $ 11,727 440 - $ 12,167 $ 1,619	Otherequipment $ 414,462 7,018 ( 4,335 ) 21,224 $ 438,369 $ 345,379 29,673 ( 4,262) $ 370,790 $ 67,579 $ 438,369 12,452 ( 10,760 ) 26,582 $ 466,643 $ 370,790 27,508 ( 9,203) $ 389,095 $ 77,548		Property in construction $ 7,214 12,037 - 12,564) $ 6,687 $ - - - $ - $ 6,687 $ 6,687 13,336 - 16,368) $ 3,655 $ - - - $ - $ 3,655		Total
						( ( ( (		( (	( ( ( (	( (		( ( ( (	$ 2,837,266 105,559 26,536 ) 13,559 $ 2,929,848 $ 2,006,787 118,396 26,463) $ 2,098,720 $ 831,128 $ 2,929,848 40,988 160,056 ) 16,237 $ 2,827,017 $ 2,098,720 106,642 144,257) $ 2,061,105 $ 765,912

• 79 -

§THE CONTENTS OF STATEMENTS OF MAJOR ACCOUNTING ITEMS§

I

T

E M

STATEMENT INDEX

MAJOR ACCOUNTING ITEMS IN ASSETS, LIABILITIES AND EQUITY

Statement of Cash

Statement of financial assets at fair value through profit or loss-current

Statement of financial assets at fair value through other comprehensive income-current

Statement of financial assets at amortized cost-current and non-current Statement of notes receivable (including related parties) Statement of net accounts receivable (including related parties) Statement of inventory Statement of prepayments Statement of other current assets Statement of changes in financial assets at fair value through other comprehensive income-non-current

Statement of changes in investments accounted for using equity method Statement of changes in property, plant and equipment Statement of changes in accumulated depreciation and impairment of property, plant and equipment

Statement of changes in right-of-use assets Statement of changes in accumulated depreciation of right-ofuse assets

Statement of deferred tax assets Statement of short-term loans Statement of short-term notes payable Statement of financial liabilities measured at fair value through profit or loss-current Statement of notes payable (including related parties) Statement of accounts payable (including related parties) Statement of other payables Statement of provision for liabilities-current Statement of other current liabilities Statement of long-term loans Statement of lease liabilities Statement of deferred tax liabilities STATEMENT OF PROFIT AND LOSS ITEMS Statement of operating revenue Statement of operating costs Statement of marketing expenses Statement of general and administrative expenses Statement of research and development expenses Statement of net other income and expenses Statement of finance costs Statement of Employees’ Welfare, Depreciation and Amortization Expenses Summarized by Function

Statement 1 Statement 2 Statement 3 Statement 4 Statement 5 Statement 6 Statement 7 Note 15 Note 16 Statement 8 Statement 9 Note 13 Note 13 Note 14 Note 14 Note 26 Statement 10 Statement 11 Note 7 Statement 12 Statement 13 Note 19 Note 21 Statement 14 Statement 15 Note 14 Note 26 Statement 16 Statement 17 Statement 18 Statement 18 Statement 18 Note 25 Note 25 Statement 19

• 80 -

De Licacy Industrial Co., Ltd.

Statement of Cash

December 31, 2023

Statement 1 (In Thousands of New Taiwan Dollars) (Foreign currency expressed a full amount)

Item Cash on hand, turnover Bank deposits Checks and demand deposits-NTD Foreign currency demand deposits (Note)		Amount
		$ 410 169,342 151,363 320,705 $ 321,115

Note:USD4,929,576 (based on USD1=NTD30.705); JPY2,212 (based on JPY1=NTD0.2172); CNY43 (based on CNY1=NTD4.327).

• 81 -

De Licacy Industrial Co., Ltd.

Statement of financial assets at fair value through profit or loss-current

December 31, 2023

Statement 2 Name of financial product Funds Hua Nan －Saudi Arabian National Oil Fund Mega Bank－Taishin Flexible Income Fund	Shares 285,000 600,000		Amount $ 7,818 6,008 $ 13,826	Acquisition cost $ 10,000 6,018 $ 16,018	(In Thousands of New Taiwan Dollars) (Unit price is full amount of NTD) Fair value Unit price Total amount Provision of guarantees or pledges $ 27.43 $ 7,818 None 10.01 6,008 None $ 13,826	(In Thousands of New Taiwan Dollars) (Unit price is full amount of NTD) Fair value Unit price Total amount Provision of guarantees or pledges $ 27.43 $ 7,818 None 10.01 6,008 None $ 13,826
					Unit price $ 27.43 10.01

• 82 -

De Licacy Industrial Co., Ltd.

Statement of financial assets at fair value through other comprehensive income-current December 31, 2023

Statement 3 Name of financial product Domestic listed stocks Chia Her Industrial Co., Ltd.	Shares 15,000		Amount $ 302	Acquisition cost $ -	(In Thousands of New Taiwan Dollars) (Unit price is full amount of NTD) Fair value Unit price Total amount Provision of guarantees or pledges $ 20.15 $ 302 None	(In Thousands of New Taiwan Dollars) (Unit price is full amount of NTD) Fair value Unit price Total amount Provision of guarantees or pledges $ 20.15 $ 302 None
					Unit price $ 20.15

Note: Basis of fair value – the stock price of a listed company is the closing price at the balance sheet date.

• 83 -

De Licacy Industrial Co., Ltd.

Statement of financial assets at amortized cost-current and non-current

December 31, 2023

	December	31, 2023	31, 2023	31, 2023
Statement 4 Item Current Pledged demand deposits denominated in NTD Taiwan Cooperative Bank Pledged time deposits denominated in NTD Mega Bank Pledged time deposits denominated in foreign currencies （Note） O-bank Bangkok Bank Non-current Pledged time deposits denominated in NTD Taiwan Cooperative Bank	Annual interest rate (%) 0.55 5.05～5.25 5.13 0.7	(In Thousands of New Taiwan Dollars) (Foreign currency expressed a full amount) Period Amount $ 30,221 2023.12.28～2024.01.28 8,000 2023.07.30～2024.03.28 640,033 2023.07.24～2024.01.19 122,820 762,853 $ 801,074 2023.10.13～2024.10.13 $ 14,079
				$ 30,221 8,000 640,033 122,820 762,853 $ 801,074 $ 14,079

Note: USD24,844,585 (calculated based on USD1=NTD30.705)

• 84 -

De Licacy Industrial Co., Ltd.

Statement of notes receivable (including related parties)

December 31, 2023

Statement 5 (In Thousands of New Taiwan Dollars)

Company name Non-related parties SOUREX CO., LTD. E TEXTILE CO., LTD. GIANT TEXTILE ENTERPRISE CO., LTD. KUEN LONG TEXTILE CO., LTD. Other (Note) Related parties Lucky Unique Tung Ming Company Other (Note)		Amount
		$ 6,674 2,770 2,155 764 2,836 $ 15,199 $ 24,080 5,615 290 $ 29,985

Note: The balance of each account included does not exceed 5% of the total amount of each accounting item.

• 85 -

De Licacy Industrial Co., Ltd.

Statement of net accounts receivable (including related parties)

December 31, 2023

Statement 6 (In Thousands of New Taiwan Dollars)

Company name Non-related parties SINTEX INTERNATIONAL LTD. SHANTA INDUSTRIES LTD. Other (Note 1) Less: Loss allowance Related parties Lucky Unique Vietnam De Licacy Enterprise Chadtex Company Other (Note 2)		Amount
		$ 69,330 89,378 193,924 352,632 21,980 $ 330,652 $ 24,180 80,544 11,015 8,052 $ 123,791

• Note 1: The balance of each account included does not exceed 5% of the total accounts receivable. Of which, $14,833 thousand was aged over 12 months and an allowance for loss of $14,833 thousand was provided.

• Note 2: The balance of each account included does not exceed 5% of the total accounts receivable-related parties. Of which, $26 thousand was aged over 12 months and no allowance for loss is provided.

• 86 -

De Licacy Industrial Co., Ltd. Statement of inventory December 31, 2023 Statement 7 (In Thousands of New Taiwan Dollars)

Item Finished goods Work-in-progress Raw materials		Amount	Amount	Amount
		Cost $ 841,773 364,612 225,211 $ 1,431,596	Market price (Note)
				$ 1,069,978 463,457 228,954 $ 1,762,389

Note: Market value is based on net realizable value.

• 87 -

De Licacy Industrial Co., Ltd.

Statement of changes in financial assets at fair value through other comprehensive income-non-current For the year ended December 31, 2023

Statement 8 Name Chia Her Industry Co., Ltd. private equity	January 1 Shares Amount 1,560,300$ 20,846	January 1 Shares Amount 1,560,300$ 20,846	Decrease in the current period (Note) Shares Amount 1,560,300$ 20,846	Decrease in the current period (Note) Shares Amount 1,560,300$ 20,846	Unit: Share, In Thousands of NTD Share capital Shares Fair value Accumulated loss Provision of guarantees or pledges -$ - Not applicable None	Unit: Share, In Thousands of NTD Share capital Shares Fair value Accumulated loss Provision of guarantees or pledges -$ - Not applicable None	Unit: Share, In Thousands of NTD Share capital Shares Fair value Accumulated loss Provision of guarantees or pledges -$ - Not applicable None
	Shares 1,560,300		Shares 1,560,300		Shares -
							None

Note: This is the arising from being transferred to common stocks.

• 88 -

De Licacy Industrial Co., Ltd.

Statement of changes in investments accounted for using equity method For the year ended December 31, 2023

Statement 9 Investments accounted for using equity method De Licacy (Samoa) Holdings Company Lucky Unique Enterprise Co., Ltd. De-Fa International Industrial Co., Ltd. Chadtex Industrial Co., Ltd. View Best Global Limited De Licacy BVI Holdings	Beginningba	Beginningba	lance Amount $ 4,084,149 226,094 71,380 181,978 19,448 3,288,351 $ 7,871,400	Increase (decrease) i year	Increase (decrease) i year	n the current Amount $ - - - 82,590 ) - - $ 82,590)						Changes in the currenty	ear				ctuarial gains or losses on efined benefit plans $ - 109 200 - - - $ 309		Endingbalance		Amount $ 3,992,413 175,271 97,205 131,593 28,602 3,313,673 $ 7,738,757	M	arket price or net worth of equity $ 4,087,502 175,271 132,511 132,233 28,602 3,313,824 $ 7,869,943	(In Thousands of Ne Valuationbasis Equity method 〞 〞 〞 〞 〞	w Taiwan Dollars) Provision of guarantees or pledges
	Shares 59,404,382 14,172,613 5,500,000 18,931,098 1,935,000 27,010			Shares - - - ( 8,259,065 ) - -			G	ains (losses) on investments $ 46,012 ) 30,204 ) 36,108 1,776 9,994 121,083 $ 92,745	C	ash dividends received $ - 31,178 ) 10,483 ) 4,354 ) - - $ 46,015)		Retained earnings $ - 1 （Note） - - - - $ 1		Exchange difference on translation of financial statements of foreign operations $ 45,724 ) 9,416 - - 840 ) 95,761) $ 132,909)	Unrealized gains or losses on investments in equity instruments at fair value through other comprehensive income $ - 1,033 - 34,783 - - $ 35,816	A d		Shares 59,404,382 14,172,613 5,500,000 10,672,033 1,935,000 27,010	Percentage of ownership （％） 100 23.62 100 55.06 100 100
					( (		( (		( ( ( (				( ( ( (												None. 〞 〞 〞 〞 〞

Note: Those are changes in associates accounted for using equity method.

• 89 -

De Licacy Industrial Co., Ltd.

Statement of short-term loans

December 31, 2023

Statement 10

(In Thousands of New Taiwan Dollars)

Bank First Commercial Bank The Shanghai Commercial & Savings Bank E.SUN Bank Taishin Bank Bank of Taiwan Bank Sinopac Co., Ltd. Land Bank of Taiwan Entie Commercial Bank Ltd. Fubon Bank Hua Nan Commercial Bank The Bank of East Asia Limited The Export-Import Bank of the Republic of China Yuanta Commercial Bank Co., Ltd. Bank of Panshin Shin Kong Commercial Bank O-Bank Mega Bank Bangkok Bank Taiwan Cooperative Bank	Type Credit loans 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 Collateralized borrowing 〞 〞 〞		Amount $ 148,228 50,000 30,000 50,000 50,000 80,000 20,000 200,000 50,000 260,000 150,000 80,000 80,000 20,000 100,000 1,368,228 480,000 40,000 150,000 120,000 790,000 $ 2,158,228	Contract period 2023.10.11～2024.03.27 2023.12.18～2024.12.18 2023.10.26～2024.01.25 2023.12.27～2024.01.26 2023.11.13～2024.02.07 2023.12.14～2024.03.13 2023.11.02～2024.02.02 2023.12.25～2024.01.25 2023.11.22～2024.02.20 2023.11.07～2024.01.05 2023.12.13～2024.01.12 2023.01.30～2024.03.22 2023.08.30～2024.02.29 2023.11.26～2024.02.14 2023.11.02～2024.02.02 2023.12.04～2024.01.29 2023.11.24～2024.05.22 2023.07.24～2024.01.19 2023.09.06～2024.08.30	Interest rate range (%) 2.05～2.10 2.29 1.95 2.25 1.95 1.95 1.97 2.18 2.25 2.2 2.2 2.11 2.1 2.22 2.08 1.97 2.14 2.13 2.15	Lines of credit $ 270,000 75,000 50,000 100,000 100,000 80,000 50,000 240,000 100,000 260,000 150,000 80,000 150,000 50,000 100,000 1,200,000 80,000 400,000 300,000	Pledge or guarantee
							Chairman of the Company is the guarantor. 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 Time deposits 〞 〞 Reserve account

• 90 -

De Licacy Industrial Co., Ltd.

Statement of short-term notes payable

December 31, 2023

Statement 11

(In Thousands of New Taiwan Dollars)

Guarantee or acceptance agency Grand Bills Finance Corp. Taiwan Cooperative Bills Finance Corp. China Bills Finance Corp. Mega Bills Finance Co. Ltd. Dah Chung Bills Finance Corp. Da Ching Bills Finance Corp. Taiwan Finance Corp. International Bills Finance Corp. O-Bank	Period 2023.12.27～2024.01.26 2023.12.19～2024.01.19 2023.12.01～2024.01.30 2023.11.10～2024.01.09 2023.12.14～2024.01.11 2023.12.08～2024.03.07 2023.12.01～2024.01.05 2023.10.31～2024.01.29 2023.11.27～2024.01.24	Discount rate (annual) (%) 1.9 1.64 1.45 1.76 1.74 1.90 1.82 1.78 1.39			Amount
				Issuing amount $ 30,000 50,000 30,000 50,000 30,000 30,000 30,000 50,000 260,000 $ 560,000	Unamortized ticket discount ( $ 40 ) ( 42 ) ( 36 ) ( 22 ) ( 16 ) ( 105 ) ( 7 ) ( 71 ) ( 238) ($ 577)	Carrying amount
					( ( ( ( ( ( ( ( ( (		$ 29,960 49,958 29,964 49,978 29,984 29,895 29,993 49,929 259,762 $ 559,423

• 91 -

De Licacy Industrial Co., Ltd.

Statement of notes payable (including related parties)

December 31, 2023

Statement 12 (In Thousands of New Taiwan Dollars)

Company name Non-related parties SINCERE CHINA LIMITED ITALON FIBER CO., LTD. BIGSUNSHINECO., LTD. Other (Note) Related parties Lucky Unique Tung Ming Company		Amount
		$ 9,811 8,978 8,065 79,855 $ 106,709 $ 12,397 41,194 $ 53,591

Note: The balance of each account included does not exceed 5% of the total amount of accounts payables.

• 92 -

De Licacy Industrial Co., Ltd.

Statement of accounts payable (including related parties)

December 31, 2023

Statement 13

(In Thousands of New Taiwan Dollars)

Company name Non-related parties ITALON FIBER CO., LTD. BIG SUNSHINE CO., LTD. Far Eastern New Century Corporation HSIN SIN TEXTILE CO., LTD. SHEEPON TEXTILE COMPANY LIMITED KINGLY YARN INDUSTRIAL CO., LTD. Others (Note) Related parties Future Power International Co., Ltd. Tung Ming Company Lucky Unique Others (Note)		Amount
		$ 4,062 3,465 3,100 3,011 2,893 2,838 36,211 $ 55,580 $ 52,922 28,018 8,104 8,809 $ 97,853

Note: The balance of each account included does not exceed 5% of the total amount of each accounting item.

• 93 -

De Licacy Industrial Co., Ltd. Statement of other current liabilities

December 31, 2023

December 31, 2023	December 31, 2023
Statement 14 (In Thousands of New Item Receipts in suspense Receipts in lieu Others (Note)		Taiwan Dollars) Amount
		$ 35,900 4,694 1,874 $ 42,468

Note: The individual balance included does not exceed 5% of total other current liabilities.

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De Licacy Industrial Co., Ltd. Statement of long-term loans December 31, 2023

Statement 15

(In Thousands of New Taiwan Dollars)

Bank name The Export-Import Bank of the Republic of China The Export-Import Bank of the Republic of China O-Bank Hua Nan Commercial Bank Mega Bank Land Bank of Taiwan O-Bank (Lead bank of syndicated loan) O-Bank (Lead bank of syndicated loan) Less: Syndicated loans arrangement fee	Summary Collateralized borrowing Credit loans 〞 〞 〞 〞 Syndicated loans Commercial paper guarantee for syndicated loans		Ending balance $ 2,667 285,000 175,170 153,758 45,833 38,640 1,173,600 997,615 2,872,283 3,025 $ 2,869,258	Expiry amount within 1 year $ 2,667 115,000 45,960 68,847 25,000 17,588 187,776 160,000 622,838 - $ 622,838	Amount over than 1 year $ - 170,000 129,210 84,911 20,833 21,052 985,824 837,615 2,249,445 3,025 $ 2,246,420	Contract period 2020.11.27～2024.08.15 2020.03.20～2026.12.08 2019.05.22～2029.07.09 2019.08.20～2029.11.12 2020.10.08～2025.10.08 2021.02.04～2026.02.04 2021.10.22～2026.10.22 2023.12.09～2024.02.27 （Note）	Interest rate (%) 1.42 2.42～2.44 1.06 1.4～2.05 2.14 2.3 2.79 1.45～1.56	Pledge or guarantee
								Machinery equipment Chairman of the Company is the guarantor. 〞 〞 〞 〞 〞 〞

Note: The loan contract of commercial paper guarantee for syndicated loans will be renew every 2 months.

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De Licacy Industrial Co., Ltd.

Statement of operating revenue

For the year ended December 31, 2023

Statement 16 (In Thousands of New Taiwan Dollars)

Item Sales revenue Finished fabric Yarn and processed silk Dyeing auxiliaries, pulp and main materials Processing revenue Less: Sales returns Finished fabric, yarn, and textured yarn Sales discount Net amount	Quantity 35,252 thousand yards 3,495 thousand kg 289 thousand kg 60 thousand yards		Amount
			$ 3,230,437 403,826 15,553 3,649,816 33,445 3,683,261 7,356 45,697 $ 3,630,208

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De Licacy Industrial Co., Ltd.

Statement of operating costs

For the year ended December 31, 2023

Statement 17

(In Thousands of New Taiwan Dollars)

Item Beginning materials Add: Current year material imports Less: Sale of raw materials Ending raw materials Transfer to research and development expenses Transfer to manufacturing costs Direct raw material consumption Direct labor Manufacturing costs Add: Processing costs Less: Transfer to research and development expenses Manufacturing costs Add: Beginning work-in-progress Current year purchases Transfer of finished goods Less: Inventory loss Sale of work-in-progress Ending work-in-progress Transfer to manufacturing costs Transfer to research and development expenses Transfer to marketing expenses Cost of finished goods Add: Beginning finished goods Current year purchases Less: Ending finished goods Inventory loss Transfer to work-in-progress Transfer to manufacturing costs Transfer to marketing expenses Transfer to General and administrative expenses Transfer to Research and development expenses Cost of production and sales Cost of raw materials and work-in-process sold Unallocated fixed manufacturing costs Revenue from sale of scraps Inventory loss on physical count Total operating costs		Amount
	(	$ 263,740 1,358,283 323,269 225,211 3,042 53,833 1,016,668 210,534 762,556 465,871 3,344 2,452,285 415,256 - 2,113,155 72 94,181 364,612 2,268 705 177 4,518,681 1,066,285 200,982 841,773 81 2,113,155 62 7,383 28 7,816 2,815,650 417,450 54,344 163 ) 153 $ 3,287,434

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De Licacy Industrial Co., Ltd. Statement of operating expenses For the year ended December 31, 2023

Statement 18 Payroll Shipping expenses Research fees Depreciation Entertainment expense Insurance expense Export expenses Professional service fees Expected credit loss Others (Note)	Summary Salaries, bonuses overtime fees and directors’ remuneration, etc. Land, sea and air freight expenses, etc. Product development expenses Depreciation on property, plant and equipment and right-of-use assets Sample giving, entertaining customers, etc. Labor and health insurance, fire insurance, accident insurance, etc. Inspection and testing fees, etc. Accountant’s auditing fee and stock agency service fee		Marketing expense $ 39,606 50,660 3 10,811 13,797 5,128 15,505 - - 35,581 $ 171,091	Management expense $ 63,132 1,774 - 8,604 4,038 6,542 - 9,214 - 17,494 $ 110,798	(In Thousands of New Taiwan Dollars) R&D expense Expected credit impairment loss Total $ 51,505 $ - $ 154,243 149 - 52,583 18,790 - 18,793 4,035 - 23,450 188 - 18,023 6,198 - 17,868 - - 15,505 - - 9,214 - 22,709 22,709 21,522 - 74,597 $ 102,387 $ 22,709 $ 406,985

Note: The amount of each item does not exceed 5% of the amount of this account.

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De Licacy Industrial Co., Ltd.

Statement of Labor, Depreciation and Amortization by Function

Statement 19 (In Thousands of New Taiwan Dollars)

Employee benefits Payroll Labor and health insurance Pension Remuneration to directors Other Depreciation			2023		Total $ 429,768 46,596 14,526 6,172 18,431 $ 515,493 $ 156,491			2022
	Operating costs $ 281,697 29,499 7,525 - 10,520 $ 329,241 $ 133,041		Operating expenses $ 148,071 17,097 7,001 6,172 7,911 $ 186,252 $ 23,450			Operating costs $ 303,513 27,818 8,072 - 8,348 $ 347,751 $ 106,301		Operating expenses $ 170,807 16,341 7,246 10,723 6,633 $ 211,750 $ 26,218		Total
										$ 474,320 44,159 15,318 10,723 14,981 $ 559,501 $ 132,519

• Note: The number of employees for the current year and the previous year were 785 and 776, respectively, of which the number of directors who were not concurrent employees in 2023 and 2022 were 7 and 3, respectively.

• (1) The average employee benefit expense for the year was $655 thousand (“Total employee benefit expense for the year – Total amount of director’s remuneration” / “Number of employees for the year – Number of directors who are not concurrent employees”). The average employee benefit expense for the previous year was $710 thousand (“Total employee benefit expense for the previous year – Total amount of director’s remuneration” / “Number of employees for the previous year – Number of directors who are not concurrent employees”).

• (2) The average employee salary expense for the year was $552 thousand (Total salary expense for the year / “Number of employees for the year – Number of directors who are not concurrent employees”). The average employee salary expense for the previous year was $614 thousand (Total salary expense for the previous year / “Number of employees for the previous year – Number of directors who are not concurrent employees”).

• (3) Change in average employee salary cost adjustment -10% (“Average employee salary cost for the current year – Average employee salary cost for the previous year” / Average employee salary cost for the previous year).

• (4) The Company’s employee compensation policy is to provide employees with compensation and benefits that are above the industry average. Employee compensation includes monthly salaries (including special allowances, special expenses, production bonuses, etc. for performance and production results), bonuses for the three holidays (Spring Festival, Labor Day and Mid-Autumn Festival), and compensation based on the Company’s annual profitability (yearend bonuses). In accordance with Article 26 of the Company’s Articles of Incorporation, the Company shall set aside no less than 4% of the Company’s annual profit as employee compensation, and the amount and distribution method shall be recommended by the Remuneration Committee to the Board of Directors for approval. Employee compensation will be distributed at the mid-year or at the end of year, and the amount distributed is determined according to each employee’s position, contribution and performance.

• (5) The Chairman, Vice Chairman and Managers (including managers who serve as directors) of the Company shall be paid monthly in accordance with the Salary Control Act. In the event of a salary increase or a change in position during their term of office that results in an increase in compensation or the payment of a year-end bonus, the Remuneration Committee shall consider the matter and submit it to the Board of Directors for a resolution. The Board of Directors shall recuse itself from voting on any resolution of compensation for itself and its related parties. In accordance with Article 26 of the Company’s Articles of Incorporation, if the Company makes a profit in a year, the Board of Directors shall resolve to set aside not more than 3% of the remuneration of the directors. However, if the Company still has accumulated losses, the amount of compensation shall be reserved in advance and then the remuneration to the directors shall be provided in accordance with the aforementioned percentage.

• (6) The remuneration for independent directors shall be $250,000 per year for each director, regardless of profit or loss.

• (7) The Company has established an Audit Committee; there is no supervisor.

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