Stock Code: 2383

ELITE MATERIAL CO., LTD. AND SUBSIDIARIES

Consolidated Financial Statements with CPA’s Review Report

First Quarter of 2023 and 2022

Address: No.18, Datong 1st Rd., Guanyin Dist., Taoyuan City 328, Taiwan (R.O.C.) Tel: (03)483-7937

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		Item Page
Chapter I	Cover ............................................................................................................................ 1
Chapter II	CPA’s	Review Report ................................................................................................... 3
Chapter III	Consolidated Balance Sheets ......................................................................................... 4
Chapter IV	Consolidated Statements of Comprehensive Income ...................................................... 5
Chapter V	Consolidated Statements of Changes in Equity .............................................................. 6
Chapter VI	Consolidated Statements of Cash Flows ........................................................................ 7
Chapter VII	Notes to Consolidated Financial Statements. ................................................................. 8
	I.	Company History ............................................................................................... 8
	II.	Dates and Procedures for the Financial Statement Approval ............................... 8
	III.	Application of New and Revised Standards, Amendments, and
		Interpretations .................................................................................................... 8
	IV.	Summary of Significant Accounting Policies ..................................................... 9
	V.	Major Sources of Uncertainty in Significant Accounting Judgments,
		Estimations, and Assumptions.......................................................................... 12
	VI.	Description of Significant Accounting Items .................................................... 12
	VII.	Related Party Transaction ................................................................................ 38
	VIII.	Pledged Assets ................................................................................................. 40
	IX.	Material Contingent Liabilities and Unrecognized Contractual
		Commitments .................................................................................................. 40
	X.	Losses Due to Major Disasters ......................................................................... 41
	XI.	Major Subsequent Events ................................................................................. 42
	XII.	Other................................................................................................................ 42
	XIII.	Notes to Disclosures ........................................................................................ 42
		(I) Information on Significant Transactions .................................................. 42
		(II) Information on Investees ......................................................................... 46
		(III) Information of Investment in Mainland China ......................................... 47
		(IV) Information of Major Shareholders ......................................................... 48
	XIV.	Department Information ................................................................................... 49

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CPA’s Review Report

To the Board of Directors of Elite Material Co., Ltd.:

Foreword

The consolidated balance sheet of Elite Material Co., Ltd. and its subsidiaries on March 31, 2023 and 2022 and the consolidated income statement, consolidated statement of changes in equity, consolidated statement of cash flows, and consolidated financial statements notes (including the summary of major accounting policies) from January 1 to March 31 in 2023 and 2022 are reviewed by the CPA. In accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and FSC recognized and published IAS 34 “Interim Financial Reporting”, it is the management’s responsibility to prepare a fair representation of the consolidated financial statements , and the CPA’s responsibility to draw a conclusion on the consolidated financial statements based on the review results.

Scope of the report

The CPA has reviewed in accordance with the TWSRE2410. The procedures performed in reviewing the consolidated financial statements include inquiries (primarily with those responsible for financial and accounting matters), analytical procedures and other review procedures. The scope of the review is significantly smaller than that of the audit work, so the CPA may not be able to detect all the matters that can be identified through the audit work, and therefore cannot express an audit opinion.

Conclusion

According to the review results of the CPA, it was not found that the consolidated financial statements of Elite Material Co., Ltd. did not comply with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and FSC recognized and published IAS 34 “Interim Financial Reporting”, which cannot properly express the consolidated financial position of Elite Material Co., Ltd. and its subsidiaries on March 31, 2023 and 2022, and the consolidated financial performance and consolidated cash flow from January 1 to March 31 in 2023 and 2022.

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KPMG

CPA:

Securities Competent Chin-Kuan-Cheng-Shen-Tzu No. 1000011652 Authority Approval : Chin-Kuan-Cheng-Shen-Tzu No. 1080303300 Certified Number

April 26, 2023

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Reviewed on March 31, 2023 and 2022, not audited with auditing standards ELITE MATERIAL CO., LTD. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

March 31, 2023, December 31, 2022, and March 31, 2022

(Expressed in Thousands of New Taiwan Dollars)

	March 31,			December	31,	March 31,					March 31,			December	31,		March 31,
	2023			2022		2022					2023			2022			2022
	Amount	%		Amount	%	Amount	%		Liabilities and Stockholders’ Equity		Amount	%		Amount	%		Amount	%
									Current Liabilities:
$	14,413,600	31		10,443,618	24	8,368,241	21	2100	Short-term borrowings (Note 6 (8))	$	7,545,577	16		5,209,815	12		4,000,191	10
	137,983	-		212,623	1	116,935	-	2110	Short-term notes payable (Note 6 (9))		-	-		-	-		200,000	-
	9,676,381	21		11,470,512	26	13,201,193	33	2170	Accounts payable		5,986,383	13		6,513,281	15		7,890,816	20
	602,497		1	49,423	-	56,170	-	2200	Other payables (Note 7)		6,167,326	13		3,288,347		8	3,028,790		8
	3,727,856		8	4,235,908	10	5,476,126	14	2230	Current tax liabilities		518,964		1	542,458		1	385,944		1
	238,937		1	160,478	-	386,696	1	2280	Current lease liabilities (Note 6 (12))		12,599	-		12,834	-		12,098	-
	212,313		1	7,395	-	3,004	-	2322	Long-term borrowings due within one year or one business		646,353		2	89,657	-		196,429		1
	29,009,567	63		26,579,957	61	27,608,365	69		cycle (Note 6 (10))
								2399	Other current liabilities - others		71,819	-		103,632	-		158,367	-
	-	-		-	-	20,667	-		Total current liabilities		20,949,021	45		15,760,024	36		15,872,635	40
									Non-Current liabilities:
	15,189,371	33		14,679,878	34	10,232,337	26	2500	Financial liabilities at fair value through profit or loss -		17,326	-		23,564	-		-	-
	601,171		1	609,176	1	614,945	1		non-current (Note 6 (11))
	730,862		2	744,784	2	698,778	2	2530	Bonds payable (Note (6) (11))		3,311,326		7	3,302,140		8	-	-
	203,429	-		192,172	1	144,395	-	2540	Long-term borrowings (Note 6 (10))		856,498		2	916,132		2	774,325		2
	387,846		1	464,196	1	648,941	2	2570	Deferred income tax liabilities (Note 6 (15))		554,100		1	519,997		1	951,033		2
	69,715	-		69,482	-	63,828	-	2580	Lease liabilities - non-current (Note 6 (12))		304,971		1	310,732		1	298,536		1
	42,842	-		42,842	-	14,603	-	2600	Other non-current liabilities (Note 6 (13))		442,788		1	475,334		1	498,203		1
	17,225,236	37		16,802,530	39	12,438,494	31		Total non-current liabilities		5,487,009	12		5,547,899	13		2,522,097		6
									Total liabilities		26,436,030	57		21,307,923	49		18,394,732	46
									Equity attributable to owners of the parent company (Note 6
									(16)):
								3100	Share capital		3,329,183		7	3,329,183		7	3,329,183		8
								3200	Capital surplus		2,076,279		5	2,076,279		5	1,868,661		5
									Retained earnings:
								3310	Legal reserve		2,953,134		6	2,953,134		7	2,403,968		6
								3320	Special reserve		903,909		2	903,909		2	756,891		2
								3350	Unappropriated Retained Earnings		11,011,239	24		13,361,349	31		13,621,974	34
								3400	Other equity interest		(474,971)	(1)		(549,290)	(1)		(352,006)	(1)
									Total equity attributable to owners of the parent		19,798,773	43		22,074,564	51		21,628,671	54
									company
								36XX	Non-controlling interests		-	-		-	-		23,456	-
									Total equity		19,798,773	43		22,074,564	51		21,652,127	54
$	46,234,803	100		43,382,487	100	40,046,859	100		Total liabilities and equity	$	46,234,803	100		43,382,487	100		40,046,859	100

			March 31,			December	31,	March 31,
			2023			2022		2022
	Assets		Amount	%		Amount	%	Amount	%
	Current Assets:
1100	Cash and cash equivalents (Note 6 (1))	$	14,413,600	31		10,443,618	24	8,368,241	21	2100
1150	Notes receivable, net (Note 6 (3))		137,983	-		212,623	1	116,935	-	2110
1170	Accounts receivable, net (Notes 6 (3) and 7)		9,676,381	21		11,470,512	26	13,201,193	33	2170
1200	Other receivables (Notes 6 (4) and (7))		602,497		1	49,423	-	56,170	-	2200
1310	Inventories (Note 6 (5))		3,727,856		8	4,235,908	10	5,476,126	14	2230
1479	Other current assets - others		238,937		1	160,478	-	386,696	1	2280
1220	Current income tax assets		212,313		1	7,395	-	3,004	-	2322
	Total current assets		29,009,567	63		26,579,957	61	27,608,365	69
	Non-current assets:									2399
1517	Financial assets at fair value through other comprehensive		-	-		-	-	20,667	-
	income - non-current (Note 6 (2))
1600	Property, plant and equipment (Note 6 (6))		15,189,371	33		14,679,878	34	10,232,337	26	2500
1755	Right-of-use assets (Note 6 (7))		601,171		1	609,176	1	614,945	1
1780	Total intangible assets		730,862		2	744,784	2	698,778	2	2530
1840	Deferred income tax assets (Note 6 (15))		203,429	-		192,172	1	144,395	-	2540
1900	Other non-current assets		387,846		1	464,196	1	648,941	2	2570
1920	Refundable deposits paid (Note 8)		69,715	-		69,482	-	63,828	-	2580
1975	Net defined benefit asset, non-current (Note 6 (14))		42,842	-		42,842	-	14,603	-	2600
	Total non-current assets		17,225,236	37		16,802,530	39	12,438,494	31

Total assets

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

Managerial Officer: En-Xiang Guan

Accounting Manager: Sara Yen

Chairman: Ding-Yu Dong

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Reviewed only, not audited with auditing standards ELITE MATERIAL CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

From January 1 to March 31, 2023 and 2022

(Expressed in Thousands of New Taiwan Dollars)

January 2023 to March 2023	January 2023 to March 2023	January 2022 to March 2022 Amount `％` 9,918,460 100 (7,440,614) (75) 2,477,846 25 (284,798) (3) (334,843) (3) (207,398) (2) 185 - (826,854) (8) 1,650,992 17 10,862 - 38,422 - (31,809) - 17,475 - 1,668,467 17 (342,947) (4) 1,325,520 13 690,696 7 (137,976) (1) 552,720 6 552,720 6 1,878,240 19 1,323,922 13 1,598 - 1,325,520 13 1,875,825 19 2,415 - 1,878,240 19 3.98 3.97
Amount	`％`	Amount
$ 7,359,127 (5,787,085)	100 (79)	9,918,460 (7,440,614)
1,572,042	21	2,477,846
(247,090) (299,137) (256,348) (313)	(3) (4) (3) -	(284,798) (334,843) (207,398) 185
(802,888)	(10)	(826,854)
769,154	11	1,650,992
21,440 10,034 (71,589)	- - (1)	10,862 38,422 (31,809)
(40,115)	(1)	17,475
729,039 (249,343)	10 (3)	1,668,467 (342,947)
479,696	7	1,325,520
92,899 (18,580)	1 -	690,696 (137,976)
74,319	1	552,720
74,319	1	552,720
$ 554,015	8	1,878,240
$ 479,696 -	7 -	1,323,922 1,598
$ 479,696	7	1,325,520
$ 554,015 -	8 -	1,875,825 2,415
$ 554,015	8	1,878,240
$	1.44
$	1.39

(The accompanying notes are an integral part of the consolidated financial statements) Chairman: Managerial Officer: Accounting Manager: Ding-Yu Dong En-Xiang Guan Sara Yen

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Reviewed only, not audited with auditing standards ELITE MATERIAL CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

From January 1 to March 31, 2023 and 2022

(Expressed in Thousands of New Taiwan Dollars)

Equity attributable to owners of parent

Share capital	Capital surplus		Retained earnings	Retained earnings	Total other equity interest	Total other equity interest	Total equity attributable to owners of parent	Non-controlling interests
					Exchange differences on translation of foreign financial statements	Equity instrument investment losses measured at fair value through other comprehensive income
Ordinary shares		Legal reserve	Special reserve	Unappropriated retained earnings
$ 3,329,183 - -	1,868,661 - -	2,403,968 - -	756,891 - -	12,298,052 1,323,922 - 1,323,922 13,621,974 13,361,349 479,696 - 479,696 (2,829,806) 11,011,239	(888,136) - 551,903	(15,773) - -	19,752,846 1,323,922 551,903	21,041 1,598 817 2,415 23,456 - - - - - -
-	-	-	-		551,903	-	1,875,825
$ 3,329,183	1,868,661	2,403,968	756,891		(336,233)	(15,773)	21,628,671
$ 3,329,183 - -	2,076,279 - -	2,953,134 - -	903,909 - -		(511,344) - 74,319	(37,946) - -	22,074,564 479,696 74,319
-	-	-	-		74,319	-	554,015
-	-	-	-		-	-	(2,829,806)
$ 3,329,183	2,076,279	2,953,134	903,909		(437,025)	(37,946)	19,798,773

(The accompanying notes are an integral part of the consolidated financial statements) Managerial Officer: En-Xiang Guan

Accounting Manager: Sara Yen

Chairman: Ding-Yu Dong

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Reviewed only, not audited with auditing standards ELITE MATERIAL CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

From January 1 to March 31, 2023 and 2022

(Expressed in Thousands of New Taiwan Dollars)

Cash flows from operating activities: Profit before tax Adjustments: Adjustments to reconcile: Depreciation expense Amortization expense (Reversal of) expected credit impairment loss Net gains on financial assets or liabilities at fair value through profit or loss Interest expenses Total interest income Loss on disposal of property, plant and equipment Bond discounted amortized interest expense Total adjustments to reconcile Changes in operating assets and liabilities: Changes in operating assets: Note receivable Accounts receivable Other receivables Inventory Other current assets Other non-current assets Total changes in operating assets Changes in operating liabilities: Accounts payable Other payables Other current liabilities Other non-current liabilities Total changes in operating liabilities Total changes in operating assets and liabilities Total adjustments Cash inflow generated from operations Interest received Interest paid Income taxes paid Net Cash flows from operating activities Cash flows from (used in) investing activities: Acquisition of financial assets at fair value through other comprehensive income Acquisition of property, plant and equipment Proceed from disposal of property, plant and equipment Acquisition of intangible assets Refundable deposits paid Net cash flows used in investing activities Cash flows from (used in) financing activities: Increase in short-term loans Long-term loan Repay long-term loan Guarantee deposits and margins received Payment of lease liabilities Net cash flows from financing activities Effect of exchange rate fluctuations on cash held Net increase in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period		January 2023 to March 2023	January 2022 to March 2022 1,668,467 185,494 9,258 (185) - 31,809 (10,862) 69 -
		$ 729,039 263,916 11,413 313 (6,238) 62,403 (21,440) 1,624 9,186
		321,177	215,583
		75,132 1,842,037 (1,677) 249,573 (80,342) 60,022	30,767 366,900 109,355 144,931 (15,909) (5,444)
		2,144,745	630,600
		(556,261) 31,213 (29,779) (34,378)	(505,135) 63,699 (3,593) 46,673
		(589,205)	(398,356)
		1,555,540	232,244
		1,876,717	447,827
		2,605,756 19,402 (60,734) (473,242)	2,116,294 9,287 (28,949) (301,887)
		2,091,182	1,794,745
		- (964,093) 30 (2,659) (1)	(20,244) (1,669,825) - (16,835) (78)
		(966,723)	(1,706,982)
		2,305,951 514,688 (24,369) (481) (3,254)	1,315,171 120,329 - 2,052 (2,903)
		2,792,535	1,434,649
		52,988 3,969,982 10,443,618	203,760 1,726,172 6,642,069
		$ 14,413,600	8,368,241

(The accompanying notes are an integral part of the consolidated financial statements) Chairman: Ding-Yu Dong Managerial Officer: En-Xiang Guan Accounting Manager: Sara Yen

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Reviewed only, not audited with auditing standards ELITE MATERIAL CO., LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS First Quarter of 2023 and 2022

(Unless otherwise stated, all amounts are in thousands of NTD)

I. Company history

Elite Material Co., Ltd. (hereinafter referred to as “The Company”) was established on March 24, 1992, with the MOEA approval to manufacture and sale of copper foil substrates, special chemicals for the electronic industry and raw materials for electronic components, semi-finished products, and finished products where the main source of operating income is the manufacture and sale of printed circuit substrates and adhesive sheets.

On October 3, 1996, the Company was approved to be listed on the OTC stock trading, and the stock was officially listed for trading on December 26 of the same year; The Company was approved on October 22, 1998 and officially listed on TSWE on November 27 of the same year. The registration address is at No.18, Datong 1st Rd., Guanyin Dist., Taoyuan City 328, Taiwan (R.O.C.)

II. Dates and procedures for the financial statement approval

The financial statements were approved by the Company’s Board of Directors on April 26, 2023.

III. Application of new and revised standards, amendments, and interpretations

(I) Impact of new and revised standards, amendments, and interpretations endorsed by the FSC

The application of the amendments to the IFRSs from January 1, 2023, did not have any material impact on the Company’s financial statement:

Amendments to IAS 1 - Disclosure of Accounting Policies
Amendments to IAS 8 - Definition of Accounting Estimates
Amendments to IAS 12 - Deferred Tax related to Assets and Liabilities arising from a Single Transaction
(II) New IFRSs in issue but not yet endorsed and issued into effect by the FSC
The consolidated company does not anticipate that the following newly issued and amended standards, which have not yet been endorse, will have a material impact on the consolidated financial statements.
Amendments to IFRS 10 and IAS 28 - Sale or Contribution of Assets between an Investor and its Associate or Joint Venture
Amendments to IFRS 17 and IFRS 17 - Insurance Contracts
Amendments to IAS 1 - Classification of Liabilities as Current or Non-Current

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Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

Amendments to IAS 1 - Non-current Liabilities with Covenants
Amendments to IFRS 17 - Initial Application of IFRS 17 and IFRS 9 - Comparative Information
Amendments to IFRS 16 - Lease Liability in a Sale and Leaseback

IV. Summary of significant accounting policies

(I) Statement of compliance
This consolidated financial statements has been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers (hereinafter referred to as the “Regulations”) and the IAS 34 “Interim Financial Reporting” endorsed and issued by the FSC. This consolidated financial statements does not include all necessary information to be disclosed in the entire annual consolidated financial statement prepared in accordance with the IFRS, IAS, Interpretations endorsed and issued by the FSC (hereinafter referred to as the “IFRS endorsed by the FSC”).

The significant accounting policies adopted in this consolidated financial statements are the same as those in the 2022 consolidated financial statements. For relevant information, please refer to Note 4 to the 2022 consolidated financial statements.

(II) Consolidation basis
Subsidiaries included in the consolidated financial statements Subsidiaries included in this consolidated financial statements include:

Investment company Nature of business Subsidiary	Shareholding percentage March 31, 2023 December 31, 2022 March 31, 2022 Description
The Company EMC OVERSEAS HOLDING INCORPORATED Investment The Company Grand Wuhan Incorporated Investment	100.00% 100.00% 100.00% It was established in the British Virgin Islands in July 1996 and as of the end of March 2023, the paid-in capital was USD 36,257 thousand. 100.00% 100.00% 100.00% It was established in the Cayman Islands in January 2018 and as of the end of March 2023, the paid-in capital was USD 20,020 thousand.

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Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

The Company	EMC	Investment	100.00%	100.00%	100.00% It was established in the
	INTERNATIONAL				Cayman Islands in July
	HOLDING				2020 where the investment
	INCORPORATED				of equity capital taken
					place in December 2020,
					and as of the end of March
					2023, the paid-in capital
					was USD 27,042 thousand.
EMC OVERSEAS	Grand Zhuhai	Investment	100.00%	100.00%	100.00% It was established in the
HOLDING	Incorporated				Cayman Islands in April
INCORPORATED					2004 and as of the end of
					March 2023, the paid-in
					capital was USD 34,618
					thousand.
Grand Zhuhai	Grand Shanghai	Investment	100.00%	100.00%	99.79% It was established in the
Incorporated	Incorporated				British Virgin Islands in
					May 1997 and as of the
					end of March 2023, the
					paid-in capital was USD
					18,200 thousand.
Grand Zhuhai	Grand Zhongshan	Investment	100.00%	100.00%	100.00% It was established in the
Incorporated	Incorporated				British Virgin Islands in
					2004 and as of the end of
					March 2023, the paid-in
					capital was USD 16,437
					thousand.
Grand Shanghai	Elite Electronic	Manufacturing of	100.00%	100.00%	100.00% It was established in
Incorporated	Material (Kunshan)	Prepreg and Copper			Kunshan Economic &
	Co., Ltd (Mainland	Clad Laminate for			Technological
	China)	PCB			Development Zone,
					Jiangsu Province, China in
					September 1997 and as of
					the end of March 2023, the
					paid-in capital was USD
					63,200 thousand.

～ 10 ～

Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

Grand Zhongshan	Elite Electronic	Manufacturing of	100.00%	100.00%	100.00% It was established in
Incorporated	Material (Zhongshan)	Prepreg and Copper			Zhongshan Torch
	Co., Ltd (Mainland	Clad Laminate for			Development Zone,
	China)	PCB			Guangdong Province,
					China in July 2004 and as
					of the end of March 2023,
					the paid-in capital was
					USD 20,200 thousand.
Grand Wuhan	Elite Electronic	Manufacturing of	100.00%	100.00%	100.00% It was established in
Incorporated	Material (Huangshi)	Prepreg and Copper			Economic and
	Co., Ltd (Mainland	Clad Laminate for			Technological
	China)	PCB			Development Zone in
					Huangshi, China in March
					2008 and as of the end of
					March 2023, the paid-in
					capital was USD 20,000
					thousand.
EMC	EMC SPECIAL	Investment	100.00%	100.00%	100.00% It was established in the
INTERNATIONAL	APPLICATION				Cayman Islands in August
HOLDING	INCORPORATED				2020 where the investment
INCORPORATED					of equity capital taken
					place in December 2020,
					and as of the end of March
					2023, the paid-in capital
					was USD 26,255 thousand.
EMC	EMC USA HOLDING	Investment	100.00%	100.00%	100.00% It was invested in 100%
INTERNATIONAL	INCORPORATED				equity by EMC
HOLDING					INTERNATIONAL
INCORPORATED					HOLDING
					INCORPORATED in
					December 2021 and as of
					the end of March 2023, the
					paid-in capital was USD
					732 thousand.
EMC SPECIAL	EMD SPECIALTY	Manufacturing of	100.00%	100.00%	100.00% It was invested in 100%
APPLICATION	MATERIALS, LLC	Prepreg and Copper			equity by EMC SPECIAL
INCORPORATED		Clad Laminate for			APPLICATION
		PCB			INCORPORATED in
					December 2020.

～ 11 ～

Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

Subsidiaries not included in the consolidated financial statement: None.
(III) Income tax

The Consolidated Company measures and discloses the income tax expense for the interim period in accordance with IAS 34 Appendix B12, “Interim Financial Reporting”. Income tax expense is measured by multiplying the net profit before tax for the interim reporting period by management’s best estimate of the expected effective tax rate for the full year and is fully recognized as current income tax expense.

Where income tax expense is recognized directly in equity or other comprehensive profit and loss items, it is measured at the tax rate that is expected to be applicable when realized or settled on temporary differences between the carrying amounts of related assets and liabilities for financial reporting purposes and their tax basis.

(IV) Employee benefits

The defined benefit plan pension during the interim period is calculated based on the determined pension cost rate on the reporting date of the previous year, from the beginning of the year to the end of the current period where adjustments are made for significant market fluctuations after the closing date, as well as significant reductions, liquidations, or other significant one-off events.

V. Major sources of uncertainty in significant accounting judgments, estimations, and assumptions

When the management prepares this consolidated financial statements in accordance with the preparation standards and the IAS 34 “Interim Financial Reporting” approved by the FSC, it must make judgments, estimations, and assumptions, which will affect the application of accounting policies and the reported amounts of assets, liabilities, income, and expenses. Actual results may differ from estimations.

During the preparation of the consolidated financial statement, the significant judgments made by the management in adopting the accounting policies of the consolidated company and the main sources of estimation uncertainty are consistent with Note 5 to the 2022 Consolidated Financial Statement.

VI. Description of significant accounting items

Except for the following, there is no significant difference between the description of significant accounting items in this consolidated financial statement and the 2022 Consolidated Financial Statement. For relevant information, please refer to Note 6 to the 2022 Consolidated Financial Statement.

(I) Cash and cash equivalents

～ 12 ～

Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

March 31, 2023 $ 573 11,503,857 1,372,076 1,537,094	December 31, 2022 522 8,643,269 254,714 1,545,113	March 31, 2022 530 6,656,848 900,864 809,999
$ 14,413,600	10,443,618	8,368,241
		March 31, 2022 20,667

Investments in equity instruments at fair value through other comprehensive income The equity instrument investments held by the consolidated company are long-term strategic investments not held for trading purposes, so they have been designated to be measured at fair value through other comprehensive gains and losses. The consolidated company did not dispose of its strategic investments from January 1 to March 31, 2023 and 2022, and the accumulated profits and losses during this period were not transferred in equity.
For credit risk and market risk information, please refer to Note 6 (21).
None of the above financial assets are guaranteed for long-term borrowings and the amount of financing.

(III) Note receivable and accounts receivable

Notes Receivable - resulting from operating activities Accounts Receivable - measured at amortized cost	March 31, 2023 $ 138,392 9,681,303	December 31, 2022 213,032 11,475,143	March 31, 2022 117,285 13,205,401

～ 13 ～

Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

Less: loss allowances	(5,331) $ 9,814,364	(5,040)	(4,558)
		11,683,135	13,318,128

The consolidated company used the simplified approach to estimate expected credit losses on March 31, 2023 and 2022 for all note and accounts receivables which is measured using lifetime expected credit losses. For this measurement, these notes and accounts receivable are grouped by a common credit risk characteristic that represents the customer’s ability to pay all amounts due in accordance with the terms of the contract with the forward-looking information included. The expected credit loss analysis of the consolidated company’s note receivable and accounts receivable is as follows:

Not past due Less than 30 days past due 31~120 days past due More than 121 days past due	March 31, 2023	March 31, 2023	Allowance for lifetime expected credit losses 4,471 60 164 636
	Carrying amount of accounts receivable $ 9,649,319 145,445 18,569 6,362	Weighted average expected credit loss 0.05% 0.04% 0.88% 10.00%
	$ 9,819,695		5,331

December 31, 2022 Carrying amount of accounts receivable Weighted average expected credit loss Allowance for lifetime expected credit losses $ 11,572,071 0.04% 4,301 97,689 0.01% 6 18,415 3.98% 733 - - - $ 11,688,175 5,040 March 31, 2022 Carrying amount of accounts receivable Weighted average expected credit loss Allowance for lifetime expected credit losses $ 13,110,480 0.03% 4,352 199,720 0.05% 93	December 31, 2022 Carrying amount of accounts receivable Weighted average expected credit loss Allowance for lifetime expected credit losses $ 11,572,071 0.04% 4,301 97,689 0.01% 6 18,415 3.98% 733 - - - $ 11,688,175 5,040 March 31, 2022 Carrying amount of accounts receivable Weighted average expected credit loss Allowance for lifetime expected credit losses $ 13,110,480 0.03% 4,352 199,720 0.05% 93	December 31, 2022 Carrying amount of accounts receivable Weighted average expected credit loss Allowance for lifetime expected credit losses $ 11,572,071 0.04% 4,301 97,689 0.01% 6 18,415 3.98% 733 - - - $ 11,688,175 5,040 March 31, 2022 Carrying amount of accounts receivable Weighted average expected credit loss Allowance for lifetime expected credit losses $ 13,110,480 0.03% 4,352 199,720 0.05% 93
		5,040
		Allowance for lifetime expected credit losses 4,352 93
Carrying amount of accounts receivable $ 13,110,480 199,720	Weighted average expected credit loss 0.03% 0.05%

～ 14 ～

Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

31~120 days past due More than 121 days past due	12,486 0.91% - - $ 13,322,686	113 -
		4,558

Changes in lose allowance for note receivable and accounts receivable of the consolidated company is as follows:

company is as follows:
Opening Balance (Reversal of) recognized impairment loss Foreign currency exchange gains and losses Ending balance	January 2023 to March 2023	January 2022 to March 2022 4,635 (185) 108
	$ 5,040 313 (22)
	$ 5,331	4,558

(IV) Other receivables

Claims receivable Other receivables Less: loss allowances	March 31, 2023	December 31, 2022 - 49,423 -	March 31, 2022 - 56,170 -
	$ 537,959 64,538 - $ 602,497
		49,423	56,170

The above-mentioned other receivables are expected to have no expected credit loss due to default events during the duration based on historical experience, so the expected credit loss rate is estimated to be zero.

A fire accident occurred on January 15, 2023, please refer to Note 6 (20) and Note 10 for details.

(V) Inventory

Raw material Goods-in-process Finished goods	March 31, 2023	December 31, 2022 2,831,081 238,474 1,166,353	March 31, 2022 3,455,084 284,733 1,736,309
	$ 2,358,544 241,266 1,128,046 $ 3,727,856
		4,235,908	5,476,126

The breakdown of operating costs of the Consolidated Company is as follows:

Cost of goods sold Loss for market price decline and obsolete and	January 2023 to March 2023	January 2022 to March 2022 7,484,005 12,379
	$ 5,841,110 (5,863)

～ 15 ～

Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

slow-moving inventories (Gain from price recovery) Revenue from sale of scraps Total	(48,162)	(55,770)
	$ 5,787,085	7,440,614

As of March 31, 2023, December 31, 2022, and March 31, 2022, the consolidated company’s inventory had not been provided as a pledge.

Loss for market price decline and obsolete and slow-moving inventories are because the inventory is slow-moving, outdated, or unusable, and the net realizable value of the inventory is lower than the cost as operating costs; in addition, the inventory market price decline and slow-moving recovery profit are due to the unrecognized scrapped or disposed inventories which previously net realizable value are lower than the cost. As a result, the net realizable value of inventories is increased, and a deduction of operating costs is recognized.

On January 15, 2023, the Company's inventory of NTD 271,522 thousand was derecognized due to a fire accident, which was listed under the non-operating income and expenses - other gains and losses. For relevant descriptions, please refer to Note 6 (20) and Note 10.

(VI) Property, plant and equipment

The details of the cost and change on depreciation for property, plant, and equipment of the consolidated company from January 1 to March 31, 2023 and 2022 are as follows:

Cost or deemed cost: Balance as of January 1, 2023 Addition (including interest capitalization) Disposal Reclassification Impact from change in exchange rate Balance as of March 31, 2023 Balance as of January 1, 2022 Addition (including interest capitalization) Disposal Reclassification Impact from change in exchange rate	Land $ 2,537,243 - - - - $ 2,537,243 $ 470,621 - - - -	Property and building 4,107,905 - (143,564) 557,375 18,389	Equipment 9,791,703 - (521,457) 124,005 36,035 9,430,286 7,948,500 - (9,355) 12,044 193,003	Other 2,961,423 - (56,296) 187,849 10,777	Unfinished works and equipment to be inspected 3,520,330 962,916 (105,813) (869,229) 15,641 3,523,845 2,622,734 1,678,152 - (102,381) 116,376	Total 22,918,604 962,916 (827,130) - 80,842
		4,540,105		3,103,753		23,135,232
		2,786,073 - - 26,866 71,831		2,179,534 - (805) 63,471 54,045		16,007,462 1,678,152 (10,160) - 435,255

～ 16 ～

Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

2,884,770	2,296,245	18,110,709
1,244,293 47,710 (89,627) 4,118	1,467,404 81,902 (43,749) 4,591	8,238,726 256,973 (577,109) 27,271
1,206,494	1,510,148	7,945,861
1,098,834 31,020 - 24,792	1,266,754 52,593 (736) 29,563	7,538,880 178,938 (10,091) 170,645
1,154,646	1,348,174	7,878,372
2,863,612	1,494,019	14,679,878
3,333,611	1,593,605	15,189,371
1,687,239	912,780	8,468,582
1,730,124	948,071	10,232,337

On March 31, 2023, December 31, 2022, and March 31, 2022, the property, plant, and equipment of the consolidated company were not provided as guarantees for bank loans and pledges of financing lines.

Due to operational needs, the consolidated company purchased industrial land in 2021. The total contract price was NTD 2,160,000 thousand. The price had been paid in full in 2022, and the contract and transfer were completed in May 20, 2022.

To expand production capacity and cooperate with the local government’s relocation plan,

the consolidated company purchased relevant equipment and conducted further construction. Please refer to Note 9 (1) for the relevant major engineering contracts. Please refer to Note 6 (20) for capitalized interest.

(VII) Right-of-use assets

The cost and depreciation of the land leased by the consolidated company are detailed as follows:

Cost of right-of-use assets: Balance as of January 1, 2023 Impact from change in exchange rate Balance as of March 31, 2023	Land $ 362,629 1,892	Property and building 348,903 (2,954)	Total 711,532 (1,062) 710,470
	$ 364,521	345,949

～ 17 ～

Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

Balance as of January 1, 2022 Impact from change in exchange rate Balance as of March 31, 2022 Depreciation and impairment losses on right-of-use assets: Balance as of January 1, 2023 Depreciation Impact from change in exchange rate Balance as of March 31, 2023 Balance as of January 1, 2022 Depreciation Impact from change in exchange rate Balance as of March 31, 2022 Book value: January 1, 2023 March 31, 2023 January 1, 2022 March 31, 2022	$ 357,364 13,327	314,479 10,737	671,843 24,064 695,907 102,356 6,943 - 109,299 71,654 6,556 2,752 80,962 609,176 601,171 600,189 614,945
	$ 370,691	325,216
	$ 62,482 2,006 332	39,874 4,937 (332)
	$ 64,820	44,479
	$ 53,684 2,005 2,044	17,970 4,551 708
	$ 57,733	23,229
	$ 300,147	309,029
	$ 299,701	301,470
	$ 303,680	296,509
	$ 312,958	301,987

On March 31, 2023, December 31, 2022, and March 31, 2022, the consolidated company’s land use rights were not provided as guarantees for bank loans and the amount of financing.

(VIII) Short-term borrowings

Unsecured bank loan Unused short-term credit lines Interest rate range		March 31, 2023	December 31, 2022 5,209,815 13,206,472 3.00%~5.81%	March 31, 2022 4,000,191 10,940,841 0.56%~3.85%
		$ 7,545,577
		$ 10,905,337
		3.00%~6.55%

Please refer to Note 6 (21) for information on exposure to interest rate, foreign currency and liquidity risks of the consolidated company.

(IX) Short-term notes payable

Commercial Paper Payable Less: Unamortized discount	March 31, 2023	December 31, 2022 - -	March 31, 2022 200,000 -
	$ - -

～ 18 ～

Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

Net value Interest rate range	$ -	$ -		-		200,000 0.59%~0.66%
		-		-

Please refer to Note 6 (21) for information on exposure to interest rate, foreign currency and liquidity risks of the consolidated company.

(X) Long-term borrowings

The detail of the consolidated company’s long-term borrowings is as follows:

March 31, 2023	December 31, 2022 1,005,789 (89,657)	March 31, 2022 970,754 (196,429)
$ 1,502,851 (646,353)
$ 856,498	916,132	774,325
$ 5,687,811	6,021,262	7,049,261
3.60%~4.35% 2023~2025	3.60%~4.35% 2023~2025	0.80%~4.35% 2022~2024

Please refer to Note 6 (21) for information on exposure to interest rate, foreign currency and liquidity risks of the consolidated company.

(XI) Unsecured convertible bonds

March 31, 2023	December 31, 2022 3,465,300 (163,160)	March 31, 2022 - -
$ 3,465,300 (153,974)
$ 3,311,326	3,302,140	-
$ 17,326	23,564	-
$ 207,618	207,618	-

～ 19 ～

Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

Embedded derivative financial instruments - remeasurement of call-back and repurchase at fair value through profit and loss (presented in the non-operating income and expense in financial assets (liabilities) at fair value through profit or loss) Interest expenses		January 2023 to March 2023 $ 6,238	January 2022 to March 2022 -

		$ 9,186	-

The Company issued 5th 5-year unsecured convertible bonds with a coupon rate of 0% on April 25, 2022, with a total amount of NTD 3,465,300 thousand, issued at 101% of the face value. The actual debt amount was NTD 3,499,953 thousand. The maturity date is April 25, 2027, and the bond discount rate is 1.3057%. Thirty days before the 3-year issuance date, the creditor may request the Company to redeem the convertible bonds held by the Company in cash at the denomination of the bond. The conversion price of convertible bonds shall be handled in accordance with the Company’s issuance agreement.

Repayment date and method: Except for those that are converted into common shares of the Company in advance, or called-back by the Company or repurchased by bond holders in advance, the principal will be repaid in cash in one lump sum upon maturity.
Conversion prices and the adjustments: The conversion price at the time of issuance is set at NTD 263 per share. In the events of a change in the total number of common shares of the Company, allotment of cash dividends on common shares, a conversion price lower than the current price per share, or reissue of common shares conversion rights, adjustment shall be made. As the Company takes September 2, 2022 as the base date for dividend distribution, according to the provisions of Article 11 of the Company’s 5th domestic unsecured convertible corporate bond issuance and conversion methods, the adjustment conversion price is adjusted from NTD 263 to NTD 246.8. This bond does not have reset feature.
The call-back right of the Company for the convertible corporate bonds:
(1) From the day after the issuance of the convertible corporate bonds for three months to 40 days before the maturity date:
- A. If the closing price of the Company’s common shares exceeds 30% of the current conversion price for 30 consecutive business days;
- B. If the outstanding balance of the convertible corporate bonds converted

～ 20 ～

Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

by the Company per the requests of the bond holders is less than 10% of total initial issue amount;

The Company may delivery a “Notice to call back bonds” due in 30 days through registered mails (the aforesaid period starts from the date when the Company sends the notice, and the expiry date of the period is the base date for bond call back), and send a letter to TPEX for announcement and call back the current convertible corporate bonds in cash at face value within five business days after the bond call back base date which shall not fall within the period in which the conversion of the convertible corporate bonds is suspended.

(2) The Yield to Call are as follows: From the day after the issuance of the convertible corporate bonds for three months to 40 days before the maturity date, call back by cash at par value.
(3) If the bond holders fails to provide a written response to the Company’s agency before the bond call-back date stated in the “Notice to call back bonds” (which takes effect when it is served, and the postmark date for registered mail shall be used as the basis for call-back date), the Company will call-back the bonds in cash within five business days after the bond call back date.
The bond holders’ right of repurchase:
30 days before the 3-year issuance date, the bond holder may request the Company to call-back the convertible bonds held by the Company in cash at par value. The conversion price of convertible bonds shall be handled in accordance with the Company’s issuance agreement. The Company accepts the repurchase request and shall call-back the convertible bonds in cash within five business days after the repurchase date.

Please refer to Note 6 (21) for information on exposure to interest rate, foreign currency and liquidity risks of the consolidated company.

(XII) Lease liabilities

The carrying amounts of the consolidated company’s lease liabilities are as follows:

Current Non-current		March 31, 2023 $ 12,599	December 31, 2022 12,834	March 31, 2022 12,098

		$ 304,971	310,732	298,536

For maturity analysis, please refer to Note 6 (21) Financial Instruments. The amounts recognized in profit or loss are as follows:

～ 21 ～

Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

Interest expense on lease liability Expense on short-term lease The amounts recognized in the statement of cash flows Total cash outflow from lease	Interest expense on lease liability Expense on short-term lease The amounts recognized in the statement of cash flows Total cash outflow from lease	January 2023 to March 2023 $ 2,579	January 2022 to March 2022 2,473
		$ 11,816	9,882
		are as follows: January 2023 to March 2023 $ 17,649	January 2022 to March 2022 15,258

Leasing of houses and buildings

On January 1, 2021, the consolidated company leased houses and buildings as plants and offices for a period of 17.5 years. When the lease term expires, the consolidated company has no preferential purchasing right to the lease.

Other leases

The lease period of office equipment and transportation equipment leased by the consolidated company is usually one year, and these leases are short-term or low-value leases. The consolidated company selects applicable exemption from recognition of the relevant right-of-use assets and lease liabilities.

(XIII) Other non-current liabilities

Prepayments Guarantee deposits and margins received Total		March 31, 2023	December 31, 2022 456,527 18,807	March 31, 2022 478,566 19,637 498,203
		$ 424,427 18,361
		$ 442,788	475,334

Due to the relocation of the Kunshan Youbi Factory, the consolidated company received an advance payment of NTD 319,208 thousand, NTD 347,978 thousand and NTD 355,714 thousand on March 31, 2023, December 31, 2022, and March 31, 2022 respectively. Please refer to Note 9 (2) for details.

(XIV) Employee benefits
Defined benefit plans

Since there were no major market fluctuations, major reductions, liquidations, or other major one-off events after the reporting date of the previous year, the consolidated company adopted the actuarially determined pensions on December 31, 2022 and 2021 and disclose the pension costs for interim periods.

～ 22 ～

Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

The details of the consolidated company’s reported expenses are as follows: January 2023 to March 2023 January 2022 to March 2022 Operating costs $ - 2,324 Total selling expenses - 127 Total administrative expenses - 592 Total research and development expenses - 363 $ - 3,406	The details of the consolidated company’s reported expenses are as follows: January 2023 to March 2023 January 2022 to March 2022 Operating costs $ - 2,324 Total selling expenses - 127 Total administrative expenses - 592 Total research and development expenses - 363 $ - 3,406	The details of the consolidated company’s reported expenses are as follows: January 2023 to March 2023 January 2022 to March 2022 Operating costs $ - 2,324 Total selling expenses - 127 Total administrative expenses - 592 Total research and development expenses - 363 $ - 3,406	The details of the consolidated company’s reported expenses are as follows: January 2023 to March 2023 January 2022 to March 2022 Operating costs $ - 2,324 Total selling expenses - 127 Total administrative expenses - 592 Total research and development expenses - 363 $ - 3,406

		$ -	3,406

Determined appropriation plan The consolidated company has determined the pension expenses under the appropriation method as follows, which have been appropriated to the Bureau of Labor Insurance:

Operating costs Total selling expenses Total administrative expenses Total research and development expenses Total		January 2023 to March 2023 $ 36,999 2,729 4,562 3,333	January 2022 to March 2022 39,460 2,789 3,972 2,944

		$ 47,623	49,165

(XV) Income tax

The detail of the consolidated corporate income tax expense is as follows:

Current income tax expense Current tax expense recognized in the current year Incometax adjustmentson prior years Deferred income tax expense Occurrence and reversal of temporary differences Income tax expenses		January 2023 to March 2023 $ 244,654 83	January 2022 to March 2022 251,336 -

		244,737	251,336
		4,606	91,611
		$ 249,343	342,947

The details of income tax (expense) gains and losses recognized by the consolidated company under other comprehensive income are as follows:

Items that may be reclassified subsequently to profit or loss: Exchange differences on translation of foreign financial		January 2023 to March 2023 $ (18,580)	January 2022 to March 2022 (137,976)

～ 23 ～

Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

statements

The income tax settlement declaration of the profit-seeking enterprise of the consolidated company has been approved by the tax collection authority until 2020.

(XVI) Capital and other equity

Except for the following, there was no significant change in the capital and other equity of the consolidated company from January 1 to March 31, 2023 and 2022. For relevant information, please refer to Note 6 (16) to the 2022 Consolidated Financial Statement.

Issuance of common stock
On March 31, 2023, December 31, 2022, and March 31, 2022, the Company’s total rated share capital was NTD 6,000,000 thousand. The face value of each share is NTD 10 with 600,000 thousand shares. The issued common shares are all 332,918 thousand shares, and all share price on the issued shares have been received.
Capital surplus

The balance of the Company’s capital surplus is as follows:

Additional paid-in capital in excess of par - common stock Additional paid-in capital in excess of par - convertible bond Conversion right		March 31, 2023 $ 95,627 1,773,034 207,618	December 31, 2022 95,627 1,773,034 207,618	March 31, 2022 95,627 1,773,034 -

		$ 2,076,279	2,076,279	1,868,661

Retained earnings
According to the Company’s Articles of Association, where the Company made profit in a fiscal year, the profit shall be first utilized for paying taxes, offsetting losses of previous years, setting aside 10% as legal reserve of the remaining profit, setting aside or reversing a special reserve in accordance with the laws and regulations, and then any remaining profit together with any undistributed retained earnings shall be used by the Company’s Board of Directors as the basis for proposing a distribution plan, which should be resolved in the shareholders’ meeting for distribution of dividends and bonus to shareholders. But if the Company’s legal reserve equals to or exceeds paid-in capital, this restriction does not apply.

On May 26, 2022, the shareholders' meeting resolved the Company’s dividends and

～ 24 ～

Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

bonuses distributed in cash in whole or in part of the legal reserve and capital surplus are authorized by the Board of Directors meeting attended by more than 2/3 of the Directors with a simple majority of the Directors in session and reported to the General Meeting of Shareholders.

To consider the characteristics of industrial growth and improve the Company’s financial structure, the annual earning distribution may not be made if the year in which the loss occurs, and the dividend policy will give priority to the Company’s future development, financial status, and shareholders’ remuneration where stock dividends will be distributed in consideration of the Company’s future capital expenditure budget to retain the required cash. The rest will be distributed to shareholders in the form of cash dividends, provided that the distribution of cash dividends shall not be less than 20% of the total distributed dividends.

The earning distribution shall be appropriated with adding 10%-70% of the distributable earning after accumulating undistributed earnings in the past after setting aside various reserves.

(1) Legal reserve
The Company shall set aside 10% of the net profit after tax as legal reserve of the remaining profit until it equals the total capital. When the Company has no losses, it may, upon a resolution of the shareholders’ meeting, distribute legal reserve by issuing new shares or by cash, but only the portion of legal reserve which exceeds 25% of the paid-in capital may be distributed.
(2) Earnings Distribution
The Board of Directors proposed the 2022 earnings distribution proposal on February 23, 2023, and the resolution in the 2021 earnings distribution proposal was approved on annual general shareholders’ meeting on May 26, 2022. The amount of the owner’s dividend is as follows:

Dividends distributed to owners of common stock: Cash		2022 $ 2,829,806	2021 3,329,183

Other equity (net post-tax)

～ 25 ～

Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

Exchange differences on translation of foreign financial statements $ (511,344) 74,319	Equity instrument investment losses measured at fair value through other comprehensive income (37,946) -	Total (549,290) 74,319

$ (437,025)	(37,946)	(474,971)
$ (888,136) 551,903	(15,773) -	(903,909) 551,903
$ (336,233)	(15,773)	(352,006)

(XVII) Earnings per share

The basic EPS and diluted EPS of the consolidated company are calculated as follows:

Earnings per share - basic Net income attributable to common shareholders of the Company Common stock outstanding as of January 1 Weighted Average Number of Common Stocks Outstanding as of March 31 Earnings per share - basic Earnings per share - diluted Net profit attributable to the Company for the period Amount of after-tax effect of relevant gains and losses on convertible bonds Net income attributable to common shareholders of the Company (With the effect of dilutive potential common shares) Weighted average number of common shares outstanding Effect of Potential Dilutive Common Shares The impact on employee bonuses Effect of Convertible Corporate Bond Conversion		January 2023 to March 2023	January 2022 to March 2022 1,323,922
		$ 479,696
		332,918	332,918
		332,918	332,918
		$ 1.44	3.98
		$ 479,696 2,358	1,323,922 -
		$ 482,054	1,323,922
		332,918 672 14,041	332,918 581 -

～ 26 ～

Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

Weighted average number of common shares outstanding (With the effect of dilutive potential common shares) Earnings per share - diluted	347,631	333,499
	$ 1.39	3.97

(XVIII)Revenue from customer contracts

Breakdown of income

	January 2023 to March 2023	January 2023 to March 2023	Total 1,101,344 5,256,283 1,001,500
Domestic department $ 1,078,144 216,522 725,441	Foreign department 367,605 6,435,350 308,307	Adjustment and write off (344,405) (1,395,589) (32,248)

$ 2,020,107	7,111,262	(1,772,242)	7,359,127
$ 723,347 962,658 105,411 228,691	2,939,883 4,130,043 - 41,336	(650,177) (875,593) - (246,472)	3,013,053 4,217,108 105,411 23,555
$ 2,020,107	7,111,262	(1,772,242)	7,359,127
	January 2022 to March 2022		Total 1,367,771 7,702,703 847,986
Domestic department $ 1,350,304 231,745 615,492	Foreign department 25,121 9,050,373 232,494	Adjustment and write off (7,654) (1,579,415) -

$ 2,197,541	9,307,988	(1,587,069)	9,918,460
$ 916,176 921,778	3,723,456 5,529,676	(504,417) (829,728)	4,135,215 5,621,726

～ 27 ～

Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

Mass Lamination boards Other	141,852 217,735	- 54,856	- (252,924)	141,852 19,667
	$ 2,197,541	9,307,988	(1,587,069)	9,918,460

(XIX) Remuneration to the employees and directors

In accordance with the Company’s Articles of Association, when there is profit in the annual closing, the employee’s remuneration shall not be less than 3% and the director’s remuneration shall not be higher than 1.2%. However, when the Company still has accumulated losses, it should reserve the profit to make up for the loss. In addition, when employee remuneration is distributed in stock or cash, the recipients of the payment include employees of subsidiaries that meet certain conditions

The estimated figure of the Company’s employees’ remuneration from January 1 to March 31, 2023 and 2022 were NTD 20,425 thousand and 44,991 thousand respectively, and the estimated amount of directors’ remuneration was NTD 4,425 thousand and 14,997 thousand respectively which is estimated based on the pre-tax net profit for each period before deducting employee and directors’ remuneration multiplied by the distribution of employee and director’s remuneration percentage stipulated in the Company’s Articles of Association. The employee’s remuneration is reported as the operating costs or expenses from January 1 to March 31, 2023 and 2022. If there is a difference between the actual distribution amount in the next year and the estimated figure, it will be handled according to the change in accounting estimates, and the difference will be recognized as the profit and loss of the next year.

The Company’s employee remuneration in 2022 and 2021 was NTD 172,916 thousand and 189,120 thousand respectively, and the amount of directors’ remuneration was NTD 37,465 thousand and 63,040 thousand respectively. There is no difference between the amount of employee remuneration and director’s remuneration in 2022 and 2021 and the actual distribution and the relevant information can be inquired at the MOPS.

(XX) Non-operating income and expenses

Total interest income

The details of interest income of the consolidated company from January 1 to March 31, 2023 and 2022 are as follows:

Bank deposit interest		January 2023 to March 2023	January 2022 to March 2022 10,862
		$ 21,440

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Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

2. Other gains and losses

The details of other profits and losses of the consolidated company from January 1 to March 31, 2023 and 2022 are as follows:

Foreign currency exchange (loss) gain Gains of Financial liabilities at FVTPL Loss on disposal of property, plant and equipment Disaster loss Claim receipts Other gains Other gains and losses, net		January 2023 to March 2023 $ (2,210) 6,238 (1,624) (537,959) 537,959 7,630	January 2022 to March 2022 23,189 - (69) - - 15,302 38,422

		$ 10,034

3. Finance costs

The details of financial cost of the consolidated company from January 1 to March 31, 2023 and 2022 are as follows:

Interest expenses Less: capitalized interest		January 2023 to March 2023 $ 83,072 (11,483)	January 2022 to March 2022 31,812 (3) 31,809

		$ 71,589

(XXI) Financial instrument

Except for the following, there is no significant change in the fair value of the financial instruments of the consolidated company and the exposure to credit risk, liquidity risk and market risk due to financial instruments. For relevant information, please refer to Note 6 (21) to 2022 Consolidated Financial Statement.

Liquidity risk

The following table shows the contractual expiration dates for financial liabilities,

including estimated interest but excluding the effect of netting agreements.

March 31, 2023 Non-derivative financial liabilities Unsecured bank loan	Carrying amount	Contractua lcash flows	Within 6 months	6-12 months	1-2years	Over 2 years
	$ 9,048,428	9,284,682	4,123,161	4,272,181	889,340	-

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Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

Accounts payable Other payables Bonds payable Lease liabilities	5,986,383 6,167,326 3,311,326 317,570	5,986,383 6,167,326 3,465,300 408,241	5,986,383 6,167,326 - 11,449	- - - 11,220	- - - 22,862	- - 3,465,300 362,710 3,828,010
	$ 24,831,033	25,311,932	16,288,319	4,283,401	912,202

December 31, 2022

December 31, 2022
Non-derivative financial liabilities Unsecured bank loan Accounts payable Other payables Bonds payable Lease liabilities March 31, 2022 Non-derivative financial liabilities Unsecured bank loan Short-term notes payable Accounts payable Other payables Lease liabilities	$ 6,215,604 6,513,281 3,288,347 3,302,140 323,566	6,359,104 6,513,281 3,288,347 3,465,300 417,615	3,109,303 6,513,281 3,288,347 - 11,777	2,307,343 - - - 11,316	460,988 - - - 22,915	481,470 - - 3,465,300 371,607 4,318,377 276,339 - - - 362,463 638,802
	$ 19,642,938	20,043,647	12,922,708	2,318,659	483,903
	$ 4,970,945 200,000 7,890,816 3,028,790 310,634	5,026,970 200,000 7,890,816 3,028,790 405,729	3,046,817 200,000 7,890,816 3,028,790 10,978	1,202,836 - - - 10,978	500,978 - - - 21,310
	$ 16,401,185	16,552,305	14,177,401	1,213,814	522,288

The consolidated company does not expect that the cash flows for the maturity analysis will occur significantly earlier, or that the actual amounts will be significantly different.

Currency risk
(1) Currency risk exposure

The consolidated company’s significant currency risk exposure of financial assets and liabilities is as follows:

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Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

Financial Asset Monetary items USD Financial liabilities Monetary items USD Financial Asset Monetary items USD Financial liabilities Monetary items USD Financial Asset Monetary items USD Financial liabilities Monetary items USD		March 31, 2023	NTD 2,333,471 1,635,255 1,389,314 2,263,053 NTD 2,558,051 2,208,977 1,261,732 2,712,532 NTD 2,356,405 2,378,113 1,524,655 2,578,607
	Foreign currency (thousand) $ 76,633 53,703 45,626 74,320	Exchange rate USD: NTD 30.4500 USD: RMB 6.8720 USD: NTD 30.4500 USD: RMB 6.8720 December 31, 2022
	Foreign currency (thousand) $ 83,297 71,930 41,085 88,327	Exchange rate USD: NTD 30.7100 USD: RMB 6.9669 USD: NTD 30.7100 USD: RMB 6.9669 March 31, 2022
	Foreign currency (thousand) $ 82,320 83,078 53,263 90,082	Exchange rate USD: NTD 28.6250 USD: RMB 6.3526 USD: NTD 28.6250 USD: RMB 6.3526

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Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

(2) Sensitivity analysis

The exchange rate risk of monetary items of the consolidated company arises from cash and cash equivalents, accounts and other receivables, borrowings, and accounts and other payables denominated in foreign currencies where the foreign currency exchange gains and losses arise upon exchange. From January 1 to March 31, 2023 and 2022, when the New Taiwan dollar depreciated or appreciated by 1% relative to the US dollar, and all other factors remained unchanged, the net profit after tax from January 1 to March 31, 2023 and 2022 will increase or decrease by NTD 2,585 thousand and NTD 5,385 thousand respectively.

Due to the variety of functional currencies of the consolidated company, the exchange profit and loss information of monetary items was disclosed in summary. The foreign currency exchange gains and losses (including realized and unrealized) from January 1 to March 31, 2023 and 2022 were a loss of NTD 2,210 thousand and a profit of NTD 23,189 thousand respectively.

Fair value information
(1) Type and fair value of financial instruments The consolidated company’s financial assets and liabilities at fair value through profit or loss and financial assets at fair value through other comprehensive profit or loss are measured at fair value on a recurring basis. The carrying amount and fair value of various types of financial assets and liabilities (including fair value level, but the carrying amount of financial instruments not measured at fair value is a reasonable approximation of the fair value. For equity instrument investments that are not quoted in the active market and whose fair value cannot be reliably measured, there is no need to disclose fair value information according to regulations) are listed as follows:

	March 31, 2023	March 31, 2023	March 31, 2023
Carrying amount $ 14,413,600 9,814,364 602,497 69,715		Fair	value	Total - - - -
	Level 1 - - - -	Level 2 - - - -	Level 3 - - - -

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Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

$ 24,900,176	-	-	-
$ 17,326	-	-	17,326
9,048,428 5,986,383 6,167,326 18,361 3,311,326 317,570	- - - - - -	- - - - - -	- - - - - -
24,849,394	-	-	-
$ 24,866,720	-	-	17,326
	December 31, 2022
Carrying amount	Level 1 - - - -	Fair	value
		Level 2 - - - -	Level 3 - - - -
$ 10,443,618 11,683,135 49,423 69,482
$ 22,245,658	-	-	-
$ 23,564	-	-	23,564
6,215,604 6,513,281 3,288,347 18,807 3,302,140 323,566	- - - - - -	- - - - - -	- - - - - -

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Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

19,661,745	-	-	-
$ 19,685,309	-	-	23,564
	March 31, 2022
Carrying amount	Level 1 -	Fair	value
		Level 2 -	Level 3 20,667
$ 20,667
8,368,241 13,318,128 56,170 63,828	- - - -	- - - -	- - - -
21,806,367	-	-	-
$ 21,827,034	-	-	20,667
$ 4,970,945 200,000 7,890,816 3,028,790 19,637 310,634	- - - - - -	- - - - - -	- - - - - -
$ 16,420,822	-	-	-

(2) The valuation techniques based on fair value

(2.1) Non-derivative financial instruments

If there is an active market and a price for a financial instrument is quoted in that market, the quoted price will be the fair value of the financial instrument. Market prices provided by major stock exchanges and market prices of popular central government bonds announced by the Taipei Exchange are considered to be the basis of fair values for equity instruments and debt instruments with active market.

If a quoted price, which represents the price being practically and frequently transacted in orderly transactions, can be acquired from stock exchanges,

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Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

brokers, underwriters, pricing service institutions or the administration in time then there is an active market for the financial instrument. If the conditions mentioned above are not met, then the market is regarded as inactive. Generally speaking, extremely high bid-ask spread, significant increase of bid-ask spread or extremely low transaction amounts are all indications for an inactive market.

The Company’s financial instruments with active markets and the basis of their fair values are described as follows:

The stocks of exchange-listed and OTC-listed companies are financial assets with standard terms and conditions that are traded in active markets, and their fair values are determined by reference to market quoted price.

Except for the financial instruments with active market, fair values of other financial instruments are acquired based on valuation techniques or the quoted prices from counterparties. Fair values acquired through valuation techniques can be calculated using models based on fair values from financial instruments with similar conditions and characteristics, cash flow discount method and other valuation techniques, including accessible information on the consolidated balance sheet date such as the yield curve from the Taipei Exchange or the average quoted price from Reuter’s commercial papers interest rate.

If the consolidated company’s financial instruments are with inactive markets and the basis of their fair values are described as follows:

Equity instruments that do not listed and whose fair value cannot be reliably measured: The fair value is estimated using the market comparable company method, and the main assumption is based on the equity multiplier derived from the net worth per share of the invested company and the market quoted prices of comparable foreign listed (OTC) companies. This estimate has been adjusted for the discounting effect of the lack of market liquidity of the equity securities.
(2.2) Non-derivative financial instruments

The valuations are based on valuation models widely accepted by market users, such as discounted cash flow and option pricing models.

(3) The transfer between Level 1 and Level 2

There was no transfer from January 1 to March 31, 2023 and 2022.

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Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

(4) Reconciliation of Level 3 financial assets

The consolidated company’s Level 3 financial assets measured by fair value from January 1 to March 31, 2023 and 2022 are as follows:

Balance as of March 31, 2023 (opening balance) Balance as of January 1, 2022 Additions Balance as of March 31, 2022	Fair value through other comprehensive income
	$ - $ - 20,667 $ 20,667

(5) Quantified information on significant unobservable inputs (Level 3) used in fair value measurement
The financial assets at fair value classified into Level 3 of the consolidated company include financial assets at fair value through profit or loss - bond transactions without active market and financial assets at fair value through other comprehensive income - equity investments without an active market Most of the Level 3 fair value attributed to the consolidated company only has single significant unobservable input, and only non-listed (non-OTC) equity instrument investments in have multiple significant unobservable inputs. Significant unobservable inputs of non-listed (non-OTC) equity instrument investments are independent of each other, so there is no correlation.

Quantified information of significant unobservable inputs was as follows:

Inter-relationship between significant Significant unobservable inputs Valuation unobservable and fair value Item technique inputs measurement Financial assets at Discounted  Weighted  The higher the fair value through cash flow average cost of weighted average other capital cost of capital, the comprehensive  Perpetual lower the fair value income - equity growth rate  The higher the investments perpetual growth without an active rate, the higher the market fair value

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Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

Financial liabilities Binomial tree  Volatility at fair value convertible (42.51%) through profit or bond pricing loss - Embedded model derivative financial instruments - Repurchase right

 The higher the volatility, the higher the fair value

(XXII) Financial risk management

There is no significant change in the financial risk management objectives and policies of the consolidated company and those disclosed in Note 6 (22) of the 2022 Consolidated Financial Statement.

(XXIII)Capital management

The capital management objectives, policies and procedures of the consolidated company are consistent with those disclosed in the 2022 Consolidated Financial Statement; there is no significant change in the aggregated quantitative information of the capital management items and those disclosed in the 2022 Consolidated Financial Statement. For relevant information, please refer to Note 6 (23) of the 2022 Consolidated Financial Statement.

(XXIV)Investment and financing activities in non-cash investment

The consolidated company’s non-cash investment and financing activities from January 1 to March 31, 2023 and 2022 are as follows:

For the right-of-use assets obtained by leasing, please refer to Note 6 (7) for details.
Reconciliation of liabilities arising from financing activities:

January 1, 2023 $ 5,209,815 1,005,789 323,566 3,302,140	Cash flow 2,305,951 490,319 (3,254) -	Non-cash changes Acquisition Change in exchange rate Other - 29,811 - - 6,743 - - (2,742) - - - 9,186 - 33,812 9,186	Non-cash changes Acquisition Change in exchange rate Other - 29,811 - - 6,743 - - (2,742) - - - 9,186 - 33,812 9,186
		Change in exchange rate 29,811 6,743 (2,742) -

$ 9,841,310	2,793,016	33,812	9,186

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Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

January 1, 2022 $ 2,588,894 850,000 303,245 199,820	Cash flow 1,315,171 120,329 (2,903) -	Non-cash changes Acquisition Change in exchange rate Other - 96,126 - - 425 - - 10,292 - - - 180 - 106,843 180	Non-cash changes Acquisition Change in exchange rate Other - 96,126 - - 425 - - 10,292 - - - 180 - 106,843 180	March 31, 2022 4,000,191 970,754 310,634 200,000
		Change in exchange rate 96,126 425 10,292 -

$ 3,941,959	1,432,597	106,843	180	5,481,579

VII. Related party transaction

(I) Parent company and ultimate controller

The Company is the ultimate controller of the Consolidated Company.

(II) Name and relationship of related party

During the period covered by this consolidated financial statement, the related parties that

have transactions with the consolidated company are as follows:

Relationship with the consolidated Related party company Technica USA Affiliates of the consolidated company

(III) Significant transactions with related parties

Revenue

The significant sales amount of the consolidated company to related parties is as follows:

Associate	January 2023 to March 2023 $ -	January 2022 to March 2022 38,404

The terms of sale for the consolidated company to affiliated companies and general customers are determined through negotiation between the two parties. The Payment Terms is 90 to 120 days from invoice date, which is not significantly different from that of ordinary customers, and the premium is negotiated by both parties.

Purchase

The purchase amount of the consolidated company to related parties is as follows:

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Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

Associate

January 2023 to January 2022 March 2023 to March 2022 $ 1,442 -

The purchase price of the consolidated company to the above-mentioned companies is not significantly different from the purchase price of the consolidated company to general suppliers. The Payment Terms is Net 90 days from invoice date, which is not significantly different from that of ordinary customers.

Receivables from related parties

The details of receivables from related parties to the consolidated company are as follows:

Item Related party categories	March 31, 2023	December 31, 2022 6,417	March 31, 2022 66,443
Accounts receivable Associate Other receivables Associate	$ 6,362
	-	-	1,617
	$ 6,362	6,417	68,060

Payable to related parties

The details of payables to related parties by the consolidated company are as follows:

Item Related party categories	March 31, 2023	December 31, 2022 6,528	March 31, 2022 -
Accounts payable Associate Other payables Associate	$ 7,594
	2,755	2,267	3,480
	$ 10,349	8,795	3,480

Endorsement and guarantee

Please refer to Note 13(1) for the description of the endorsement and guarantee made by the consolidated company on March 31, 2023, for its subsidiaries and affiliates for financing loans.

Other related party transactions

Item Related party categories	January 2023 to March 2023 January 2022 to March 2022 $ - 1,584
Other gains Associate

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Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

Total selling expenses Associate (IV) Key management personnel transactions Key management personnel compensation includes: Short-term employee benefits Post-employment benefits		578	1,227 2,811 January 2022 to March 2022 49,872 314 50,186
		$ 578
		January 2023 to March 2023 $ 22,798 219

		$ 23,017

VIII. Pledged assets

The details of the carrying amount of the assets pledged by the consolidated company are as follows:

Asset	Purpose ofpledge		March 31, 2023	December 31, 2022 69,482	March 31, 2022 63,828
Refundable deposits paid Deposits for mailbox, leases and natural gas, etc.			$ 69,715

IX. Material contingent liabilities and unrecognized contractual commitments

(I) Material Unrecognized Contractual Commitments
The unused standby letters of credit that have been issued by the consolidated company is as follows:

Unused standby letters of credit NTD USD	March 31, 2023 $ 43,298 18,545	December 31, 2022 43,440 20,351	March 31, 2022 40,546 19,579

Significant contracts for construction and purchase of machinery and equipment entered by the consolidated company for the expansion of new plant and equipment and the outstanding amounts are as follows:

Total contract price JPY USD RMB	March 31, 2023 $ 642,000 33,140 705,826	December 31, 2022 642,000 56,278 1,047,957	March 31, 2022 642,000 23,750 753,542

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Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

Unpaid contract price JPY USD RMB (II) Commitment:	March 31, 2023 $ 57,780 13,778 342,530	December 31, 2022 57,780 19,650 500,444	March 31, 2022 417,300 10,013 340,583

Elite Electronic Material (Kunshan) Co., Ltd (Mainland China), a subsidiary of the consolidated company, formally signed a relocation compensation agreement with the Kunshan Municipal People’s Government. According to the local government’s planned land use demand, the consolidated company is required to relocate the land use rights, buildings and other ancillary equipment on Youbi Road, Zhoushi Town, Kunshan City and compensation will be allocated to the consolidated company in stages according to the progress of the contract, with a total compensation amount of RMB 195,000 thousand. As of March 31, 2023, the land use rights, buildings and ancillary equipment of Zhoushi Town Youbi Road have not been disposed of. According to the contract, the advance payment amounted to RMB 72,040 thousand (NTD 319,208 thousand), and the remaining compensation will be collected when the construction of the new plant is completed and the land is handed over. The consolidated company is expected to complete the construction by June 30, 2023 and relocate in 2024. It is expected that the relocation will be completed, and the plant will be demolished by the end of 2024.

X. Losses due to major disasters

The Company suffered a major fire accident on January 15, 2023, which caused damage to some of the buildings, equipment, construction in progress, other assets and inventories. The Company has derecognized the damaged buildings, equipment and construction in progress amounted for NT$248,367 thousand, other assets amounted for NT$18,070 thousand, inventory amounted for NT$271,522 thousand and a total disaster loss of NT$537,959 thousand, listed as non-operating income and expenses-other gains and losses. Please refer to Note 6 (20) for details. Among them, the disaster claim is the best estimate based on the evidence available as of the reporting date, but the actual claim amount is subject to follow-up negotiations, and there may still be liabilities that cannot be estimated and have not yet been recognized.

The Company has purchased relevant property insurance, and is currently negotiating with the insurance company to process the claims. The Company has confirmed with the insurance company and its notary that it will almost certainly receive compensation from the insurance

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Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

company as claims receivable, and the amount recognized shall not exceed the disaster loss of each asset. As of March 31, 2023, the Company has recognized the claims receivable of NTD 537,959 thousand, and listed as non-operating income and expenses-other gains and losses. Please refer to Note 6 (20) for details. However, insurance claims involve disaster appraisal, and the Company is still unable to fully confirm the full amount of insurance claims and subsequent incremental insurance claim receipts will not be recognized until the Company is almost certain to receive it.

XI. Major subsequent events: None.

XII. Other

(I) Employee benefits, depreciation, depletion, and amortization expense are summarized by function as follows:

function as follows:
Function Classification	January 2023 to March 2023			January 2022 to March 2022
	Operating costs	Operating expenses	Total	Operating costs	Operating expenses	Total
Employee benefits expenses Salary expenses Labor and national health insurance expenses Pension expenses Other employee benefit expenses Depreciation expense Amortization expense	461,610 27,572 36,999 32,779 235,676 271	229,241 11,268 10,624 15,533 28,240 11,142	690,851 38,840 47,623 48,312 263,916 11,413	464,148 27,876 41,784 34,367 164,982 175	270,313 10,241 10,787 15,202 20,512 9,083	734,461 38,117 52,571 49,569 185,494 9,258

XIII. Notes to disclosures

(I) Information on significant transactions
From January 1 to March 31, 2023, the consolidated company should re-disclose the relevant information of significant transactions in accordance with the provisions of the Regulations Governing the Preparation of Financial Reports by Securities Issuers as follows:
Lending funds to others:

(Expressed in Thousands of New Taiwan Dollars)

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Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

==> picture [500 x 147] intentionally omitted <==

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

No. providing loans Name of the company to others transactions Party to classification Account Related party Maximum balance of the period balance Ending Amount actually drawn Interest range rate (Note 2) Type ofloans transaction Amount of borrowers prepared Purposes of the Allowancefor bad debts Name Value Collateral loans to a Limit on business single the amount Limit on of loans
1 Elite Electronic Elite Electronic Other Y 3,049,270 3,039,666 1,595,160 2.00% 2 - Operations - - - 4,610,452 4,610,452
Material Material receivables - (Note 3) (Note 3)
(Kunshan) Co., (Huangshi) Co., related parties
Ltd (Mainland Ltd (Mainland
China) China)
1 Elite Electronic Elite Electronic Other Y 1,471,092 1,471,092 - 2.00% 2 - Operations - - 4,610,452 4,610,452
Material Material receivables - (Note 3) (Note 3)
(Kunshan) Co., (Zhongshan) related parties
Ltd (Mainland Co., Ltd
China) (Mainland
China)
2 Elite Electronic Elite Electronic Other Y 1,955,800 926,079 310,170 2.00% 2 - Operations - - - 970,955 970,955
Material Material receivables - (Note 4) (Note 4)
(Zhongshan) (Huangshi) Co., related parties
Co., Ltd Ltd (Mainland
(Mainland China)
China)
----- End of picture text -----

Note 1: The number is filled in as follows:

Parent company is numbered 0.
Subsidiaries are numbered sequentially according to company name from Arabic numeral 1.

Note 2: 1. Where an inter-company or inter-firm business transaction calls for a loan arrangement.

Where a short-term financing facility is necessary.

Note 3: According to the Company’s Regulations Governing Loaning of Funds: the total amount of the loaning shall not exceed 30% of the borrowing company’s net worth, nor shall it exceed 30% of the Company’s net worth. The limit of loan to a single company shall not exceed 30% of the Company’s net worth.

Note 4: According to the Company’s Regulations Governing Loaning of Funds: the total amount of loan shall not exceed 30% of the borrowing company’s net value, and the limit to a single company shall not exceed 30% of the Company’s net value.

Note 5: The consolidated company’s total loan of fund shall not exceed 100% of the Company’s net worth.

Note 6: The above-mentioned transactions related to the consolidated entities have been offset when the consolidated statements are prepared.

2. Providing endorsements or guarantees for others:

(Expressed in Thousands of New Taiwan Dollars)

No.	Endorsement/ guarantee provider	Guaranteed party	Guaranteed party	Limits on endorsement/ guarantee amount provided to each guaranteed party (Note 3)	Maximum balance for the period	Ending balance	Amount actually drawn	Amount of endorsement/ guarantee collateralized by properties	Ratio of accumulated endorsement/ guarantee to net equity per latest financial statements	Maximum endorsement/ guarantee amount allowable (Note 3)	Guarantee provided by parent company	Guarantee provided by a subsidiary	Guarantee provided to subsidiaries in Mainland China
		Company name	Nature of relationships (Note 2)
0 0 1 2	Elite Material Co., Ltd. `〞` Elite Electronic Material (Kunshan) Co., Ltd (Mainland China) Elite Electronic Material (Zhongshan) Co., Ltd (Mainland China)	EMD SPECIALTY MATERIALS, LLC Technica USA Elite Electronic Material (Huangshi) Co., Ltd (Mainland China) Elite Electronic Material (Huangshi) Co., Ltd (Mainland China)	2 6 4 4	9,899,387 9,899,387 7,684,087 1,618,259	460,650 18,426 1,775,445 2,225,504	456,750 18,270 1,775,445 1,417,920	456,750 18,270 1,388,379 1,210,847	- - - -	2.31% 0.09% 11.55% 43.81%	19,798,773 19,798,773 15,368,174 3,236,517	Y		Y Y

Note 1: 0. refers to the Company.

Note 2: There are the following 7 types of relationship between the endorser and the subject of endorsement:

A company with which it does business.
A company in which the public company directly and indirectly holds more than 50% of the voting shares.
A company that directly and indirectly holds more than 50% of the voting shares in the public company.
A company in which the public company holds, directly or indirectly, 90% or more of the voting shares.
Where a public company fulfills its contractual obligations by providing mutual endorsements/ guarantees for another company in the same industry or for joint builders for purposes of undertaking a construction project.
Where all capital contributing shareholders make endorsements/ guarantees for their jointly invested company in proportion to their shareholding percentages
Where companies in the same industry provide among themselves joint and several security for a performance guarantee of a sales contract for pre-construction homes pursuant to the Consumer Protection Act for each other

Note 3: According to the Company’s Regulations Governing Making of Endorsements/ Guarantees:

The total amount of the Company’s endorsement shall not exceed 100% of the Company’s most recent net value of the financial statements, and the limit of endorsement guarantees for a single business shall not exceed 50% of the Company’s most recent net value of the financial statements.

Note 4: The above-mentioned transactions related to the consolidated entities have been offset when the consolidated statements are prepared.

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Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

Holding of securities at the end of the period (excluding the portion held due to investment in a subsidiary or an associate, and the portion held due to an interest in a joint venture).

Unit: NTD in thousand/share

Holding company	Marketable securities type and name	Relationship to the issuer	Classification	End of the period Quantity Carrying amount Ratio of shareholding Fair value	End of the period Quantity Carrying amount Ratio of shareholding Fair value	End of the period Quantity Carrying amount Ratio of shareholding Fair value	End of the period Quantity Carrying amount Ratio of shareholding Fair value	Remark
					Carrying amount	Ratio of shareholding	Fair value
EMC OVERSEAS HOLDING INCORPORARTED EMC USA HOLDING INCORPORATED	PROUD STAR INTERNATIIONA L LIMITED Technica USA (preferred stock)	- Associate	Financial assets at fair value through other comprehensive income - non-current "	500,000 722,000	- -	3.26% 87.76%	- -

Aggregate purchases or sales of the same securities reaching NT$300 million or 20% of paid-in capital or more: None.
Acquisition of property reaching NT$300 million or 20% of paid-in capital or more: None.
Disposal of property reaching NT$300 million or 20% of paid-in capital or more: None.
The purchase and sale of goods with related parties reaching NT$100 million or 20% of paid-in capital or more:

(Expressed in Thousands of New Taiwan Dollars)

Company name	Related party	Nature of relationships	Transaction details	Transaction details	Transaction details	Transaction details	Abnormal transaction	Abnormal transaction	Notes/ accounts payable or receivable	Notes/ accounts payable or receivable	Remark
			Purchases/ sales	Amount	% to total	Payment terms	Unit price	Payment terms	Ending balance	% to total
Elite Electronic Material (Kunshan) Co., Ltd (Mainland China) Elite Material Co., Ltd. Elite Electronic Material (Huangshi) Co., Ltd (Mainland China) Elite Electronic Material (Kunshan) Co., Ltd (Mainland China) Elite Electronic Material (Huangshi) Co., Ltd (Mainland China)	Elite Material Co., Ltd. Elite Electronic Material (Kunshan) Co., Ltd (Mainland China) Elite Electronic Material (Kunshan) Co., Ltd (Mainland China) Elite Electronic Material (Huangshi) Co., Ltd (Mainland China) Elite Electronic Material (Zhongshan) Co., Ltd (Mainland China)	Invested companies that adopt the equity method to evaluate the Company `〞` Substantive related party relationship `〞` `〞`	Sales Purchase Sales Purchase Sales	(273,796) 273,796 (475,143) 475,143 (633,218)	(8)% 20% (35)% 23% (46)%	Depends on the financial position of the Company `〞` `〞` `〞` `〞`	- - - - -		330,698 (330,698) 543,684 (543,684) 341,520	8% (16)% 42% (20)% 26%

～ 44 ～

Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

Elite Electronic Material (Zhongshan) Co., Ltd (Mainland China)	Elite Electronic Material (Huangshi) Co., Ltd (Mainland China)	`〞`	Purchase	633,218	46%	`〞`	-		(341,520)	(27)%

Note: The above-mentioned transactions related to the consolidated entities have been offset when the consolidated statements are prepared.

Receivables from related parties reaching NT$100 million or 20% of paid-in capital

or more:

(Expressed in Thousands of New Taiwan Dollars)

Company name	Related party	Nature of relationships	Ending balance	Turnover days (times)	Overdue	Overdue	Amounts Received in subsequent period	Allowance for bad debts
					Amount	Action taken
Elite Material Co., Ltd. Elite Material Co., Ltd. (Note 2) Elite Electronic Material (Kunshan) Co., Ltd (Mainland China) Elite Electronic Material (Kunshan) Co., Ltd (Mainland China) (Note 2) Elite Electronic Material (Kunshan) Co., Ltd (Mainland China) Elite Electronic Material (Kunshan) Co., Ltd (Mainland China) (Note 2) Elite Electronic Material (Zhongshan) Co., Ltd (Mainland China) Elite Electronic Material (Zhongshan) Co., Ltd (Mainland China) (Note 2) Elite Electronic Material (Zhongshan) Co., Ltd (Mainland China) Elite Electronic Material (Zhongshan) Co., Ltd (Mainland China) (Note 2) Elite Electronic Material (Huangshi) Co., Ltd (Mainland China)	Elite Electronic Material (Kunshan) Co., Ltd (Mainland China) `〞` Elite Material Co., Ltd. `〞` Elite Electronic Material (Huangshi) Co., Ltd (Mainland China) `〞` Elite Material Co., Ltd. `〞` Elite Electronic Material (Huangshi) Co., Ltd (Mainland China) `〞` Elite Electronic Material (Kunshan) Co., Ltd (Mainland China)	Investments accounted for using equity method `〞` Invested companies that adopt the equity method to evaluate the Company `〞` Substantive related party relationship `〞` Invested companies that adopt the equity method to evaluate the Company `〞` Substantive related party relationship `〞` `〞`	116,806 31,549 330,698 241,364 23,290 1,625,588 85,628 186,535 4,106 310,187 543,684	3.65 Not applicable 5.48 Not applicable 3.81 Not applicable 6.60 Not applicable 2.46 Not applicable 3.72	- - - - - - - - - - -		20,620 - 32,383 37,872 2,835 1,625,588 3,420 - 637 - 393,614	- - - - - - - - - - -

～ 45 ～

Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

==> picture [437 x 51] intentionally omitted <==

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

Elite Electronic Elite Electronic 〞 341,520 4.95 - 333,033 -
Material Material
(Huangshi) Co., (Zhongshan)
Ltd (Mainland Co., Ltd
China) (Mainland
China)
----- End of picture text -----

Note 1: The above-mentioned transactions related to the consolidated entities have been offset when the consolidated statements are prepared. Note 2: Other receivables- related parties

Trading in derivative instruments: None.
The business relationship between the parent and the subsidiaries and between each subsidiary, and the circumstances and amounts of any significant transactions between them:

==> picture [459 x 272] intentionally omitted <==

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

Relationship Business transactions of the first quarter of 2023
No. Transaction to the
(Note 1) Related party counterparty counterparty Classification Amount Transaction terms % of total
(Note 2)
0 Elite Material Co., Ltd. Elite Electronic 1 Sales Revenue 96,066 Note 3 1.31%
Material
(Kunshan) Co.,
Ltd (Mainland
China)
1 Elite Electronic Material Elite Material Co., 2 Sales Revenue 273,796 Note 3 3.72%
(Kunshan) Co., Ltd Ltd.
(Mainland China)
1 Elite Electronic Material Elite Electronic 3 Other receivables 1,625,588 Note 4 3.52%
(Kunshan) Co., Ltd Material
(Mainland China) (Huangshi) Co.,
Ltd (Mainland
China)
2 Elite Electronic Material Elite Material Co., 2 Sales Revenue 79,278 Note 3 1.08%
(Zhongshan) Co., Ltd Ltd.
(Mainland China)
3 Elite Electronic Material Elite Electronic 3 Sales Revenue 475,143 Note 3 6.46%
(Huangshi) Co., Ltd Material
(Mainland China) (Kunshan) Co.,
Ltd (Mainland
China)
3 〞〞 3 Accounts receivable 543,684 〞 1.18%
3 〞 Elite Electronic 3 Sales Revenue 633,218 〞 8.60%
Material
(Zhongshan) Co.,
Ltd (Mainland
China)
----- End of picture text -----

Note 1: The number is filled in as follows:

Parent company is numbered 0.
Subsidiaries are numbered sequentially according to company name from Arabic numeral 1.
Note 2: The types of relationships with counterparties are as follows:
Parent company to subsidiary
Subsidiary to parent company
Subsidiary to subsidiary

Note 3: The sale price is negotiated by the buyer and the seller, and the payment terms are determined by the financial status of the subsidiary. Note 4: There are no other transaction counterparty for comparison.

Note 5: The transaction amount below 1% of the combined total revenue or total assets will not be disclosed.

Note 6: The above-mentioned transactions related to the consolidated entities have been offset when the consolidated statements are prepared.

(II) Information on investees (excluding investee companies in China):

The information on the investees of the consolidated company from January 1 to March

31, 2023 is as follows:

(Expressed in Thousands of New Taiwan Dollars)

～ 46 ～

Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

Investment company	Invested Company	Location	Business scope	Original investment amount	Original investment amount	Holding of investment at the end of the period	Holding of investment at the end of the period	Holding of investment at the end of the period	Invested company’s profit and/or loss this term	Profit and/or loss recognized this term (Note 7)	Remark
				End of the current period	End of last year	Quantity (share)	Proportion	Carrying amount (Note 7)
Elite Material Co., Ltd. `〞` `〞` `〞` EMC OVERSEAS HOLDING INCORPORATED `〞` Grand Zhuhai Incorporated `〞` EMC INTERNATIONA L HOLDING INCORPORATED `〞` EMC SPECIAL APPLICATION INCORPORATED EMC USA HOLDING INCORPORATED	EMC OVERSEAS HOLDING INCORPORATED Grand Wuhan Incorporated EMC INTERNATIONAL HOLDING INCORPORATED Li Ceng Technology Co., Ltd. Grand Zhuhai Incorporated Li Ceng Technology Co., Ltd. Grand Shanghai Incorporated Grand Zhongshan Incorporated EMC SPECIAL APPLICATION INCORPORATED EMC USA HOLDING INCORPORATED EMD SPECIALTY MATERIALS,LLC Technica USA	British Virgin Islands Cayman Islands `〞` Taiwan Cayman Islands Taiwan British Virgin Islands `〞` Cayman Islands `〞` USA `〞`	Investment Investment Investment Electrical appliances, telecommunications equipment, wholesale, retail, battery, power generation, and manufacturing of power distribution machinery Investment Electrical appliances, telecommunications equipment, wholesale, retail, battery, power generation, and manufacturing of power distribution machinery Investment Investment Investment Investment Production and sales of Copper Clad Laminate and Prepreg International Trade	1,179,111 602,440 781,850 173,694 1,054,120 7,311 1,030,757 500,507 799,465 22,289 797,702 18,270	1,179,111 602,440 781,850 173,694 1,054,120 7,311 1,030,757 500,507 799,465 22,289 797,702 18,270	36,256,950 20,020,000 27,042,000 16,412,918 34,618,060 250,000 18,200,000 16,437,000 26,255,000 732,000 - 600,000	100.00% 100.00% 100.00% 33.50% 100.00% 1.53% 100.00% 100.00% 100.00% 100.00% 100.00% 30.00%	18,663,329 916,561 708,952 - 18,627,559 - 11,505,816 7,120,288 707,817 22 706,670 -	475,702 121,743 (38,589) - 475,376 - 328,474 146,902 (38,589) - (34,811) (5,635)	475,702 121,743 (38,589) - 475,376 - 328,474 146,902 (38,589) - (34,811) -	Subsidiary company `〞` `〞` Note 6 Subsidiary of subsidiary company Note 6 Fellow subsidiary company `〞` Subsidiary of subsidiary company `〞` Fellow subsidiary company Note 4, 5

Note 1: The carrying amount is the investment balance recognized under the equity method, including investment gains and losses and accumulated exchange adjustments...etc.
Note 2: The financial statements reviewed by the CPA of the parent company in Taiwan are using the equity method.
Note 3: The above-mentioned transactions related to the consolidated entities have been offset when the consolidated statements are prepared. Note 4: Since other shareholders hold 70% of the shares, the Company only accounts for 30%, so the Company has no control over it.
Note 5: On October 27, 2021, the consolidated company approved the resolution of the Board of Directors to adjust the investment structure. The original investment of NTD 16,608 thousand, which was reinvested in Technica through EMC Holding LTD., was adjusted to be invested in Technica by USA Holding. The investment structure change was completed on January 10, 2022 by the Investment Review Committee.
Note 6: The investment value has been impaired and the loss was recognized in full where the book value was reduced to zero in 2005.
Note 7: The difference between the ending balance and the net equity value is due to the difference between the unrealized gross profit on sales and the amortization of equipment purchasing.
(III) Information of investment in Mainland China:
Information on reinvestment in Mainland China:

(Expressed in Thousands of New Taiwan Dollars)

～ 47 ～

Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

Invested company in China	Business scope	Paid-in shares capital	Investment method (Note 1)	Accumulated outflow of investment from Taiwan as of January 1, 2023	Investment Flows	Investment Flows	Accumulated outflow of investment from Taiwan as of March 31, 2023	Invested company’s profit and/or loss this term	The Company’s direct or indirect holding percentage	Profit and/or loss recognized this term (Note 2)	Carrying amount as of March 31, 2023	Accumulated inward remittance of earnings as of March 31, 2023
					Outflow	Inflow
Elite Electronic Material (Kunshan) Co., Ltd (Mainland China) Elite Electronic Material (Zhongshan) Co., Ltd (Mainland China) Elite Electronic Material (Huangshi) Co., Ltd (Mainland China)	Production and sales of Copper Clad Laminate and Prepreg `〞` `〞`	1,924,440 615,090 609,000	(2) (2) (2)	650,816 440,613 601,858	- - -	- - -	650,816 440,613 601,858	328,344 146,818 121,554	100.00% 100.00% 100.00%	328,344 146,818 121,554	15,368,174 3,236,517 900,088	9,786,464 5,140,555 -

Upper limit on reinvestment in Mainland China:

Company name	Accumulated investment in Mainland China as of March 31, 2023	Investment amounts authorized by investment commission, MOEA	Upper limit on investment
The Company	1,710,734	10,958,800	11,879,264

Note 1: There are three types of investment methods, and they indicated below:

Directly conduct investment in China.
Reinvest in China through a company in which the same have invested in a third jurisdiction.
Other methods.
Note 2: Financial statements reviewed by CPA of the parent company in Taiwan.
Note 3: The difference between the paid-in capital of Elite Electronic Material (Kunshan) Co., Ltd (Mainland China) and the remittance from Taiwan is the direct investment of USD 6,012 thousand by the overseas subsidiary, and capital increase through capitalization of retained earnings of USD 10,000 thousand and USD 35,000 thousand.
Note 4: The difference between the paid-in capital of Elite Electronic Material (Zhongshan) Co., Ltd (Mainland China) and the remittance from Taiwan is the capital increase through capitalization of retained earnings of USD 6,255 thousand.
Note 5: The difference between the paid-in capital and the remittance from Taiwan is the direct investment of USD 110 thousand by the overseas subsidiary.
Note 6: It is converted according to the exchange rate of 30.4500 (asset and liability) and 30.4188 (profit and loss) on March 31, 2023.
Note 7: The above-mentioned transactions related to the consolidated entities have been offset when the consolidated statements are prepared.

3. Significant transactions:

For the direct or indirect significant transactions between the consolidated company and the Chinese invested company from January 1 to March 31, 2023 (which have been offset when the consolidated report is prepared), please refer to “Information on Significant Transactions” for details.

(IV) Information of major shareholders:

Shareholding Name of major shareholders:	Shares held	Ratio of shareholding
Yuchang Investment Co., Ltd.	25,471,477	7.65%
Cathay Life Insurance Co., Ltd.	17,085,000	5.13%

Note: (1) In this chart, major shareholders are defined as shareholders with more than 5% collective holding interest in common and preferred shares that have been delivered via book entry (including treasury stocks), as shown in the records of TDCC on the final business day of each quarter. Share capital, as shown in

～ 48 ～

Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

the financial statements, may differ from the number of shares that have been delivered via book entry due to differences in the preparation basis.

(2) For shareholders who have placed shareholding under trust, the above information shall be provided based on trust accounts created by the trustee. In which case, these shareholders may be required under the Securities and Exchange Act to make regulatory reporting on insiders with more than 10% ownership interest, which include shares held in own name and shares placed under trust that the shareholder has control over. Refer to MOPS for information on the reporting of insider shareholding.

XIV. Department information

The information and adjustments of the operating departments of the consolidated company are as follows:

	January 2023 to March 2023	January 2023 to March 2023	January 2023 to March 2023
Domestic department	Foreign department Other departments Adjustment and write off 5,587,790 - - 1,523,472 - (1,772,242) 7,111,262 - (1,772,242) 655,566 1,471,021 (2,032,926) January 2022to March 2022			Total 7,359,127 -
$ 1,771,337 248,770
$ 2,020,107				7,359,127 729,039
$ 635,378

Domestic department	Foreign department 7,952,073 1,355,915 9,307,988 1,513,984	Other departments - -	Adjustment and write off - (1,587,069) (1,587,069) (5,049,792)	Total 9,918,460 -
$ 1,966,387 231,154
$ 2,197,541		-		9,918,460 1,668,467
$ 1,439,560		3,764,715

～ 49 ～

AI assistant

EMC — Interim / Quarterly Report 2023

52046_rns_2023-11-08_87d5bf16-667d-4186-8856-0244289fb4eb.pdf

ELITE MATERIAL CO., LTD. AND SUBSIDIARIES

Table of Contents

CPA’s Review Report

Foreword

Scope of the report

Conclusion

KPMG

Reviewed on March 31, 2023 and 2022, not audited with auditing standards ELITE MATERIAL CO., LTD. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

March 31, 2023, December 31, 2022, and March 31, 2022

(Expressed in Thousands of New Taiwan Dollars)

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

Reviewed only, not audited with auditing standards ELITE MATERIAL CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

From January 1 to March 31, 2023 and 2022

(Expressed in Thousands of New Taiwan Dollars)

Reviewed only, not audited with auditing standards ELITE MATERIAL CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

From January 1 to March 31, 2023 and 2022

(Expressed in Thousands of New Taiwan Dollars)

Equity attributable to owners of parent

Reviewed only, not audited with auditing standards ELITE MATERIAL CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

From January 1 to March 31, 2023 and 2022

(Expressed in Thousands of New Taiwan Dollars)

Reviewed only, not audited with auditing standards ELITE MATERIAL CO., LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS First Quarter of 2023 and 2022

(Unless otherwise stated, all amounts are in thousands of NTD)

I. Company history

II. Dates and procedures for the financial statement approval

III. Application of new and revised standards, amendments, and interpretations

Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

IV. Summary of significant accounting policies

Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

VI. Description of significant accounting items

Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

(IV) Other receivables

Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

(VI) Property, plant and equipment

Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

(VII) Right-of-use assets

Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

(VIII) Short-term borrowings

Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

(X) Long-term borrowings

(XI) Unsecured convertible bonds

Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

(XIII) Other non-current liabilities

Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

(XV) Income tax

Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

statements

Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

(XVII) Earnings per share

Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

(XIX) Remuneration to the employees and directors

Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

2. Other gains and losses

3. Finance costs

(XXI) Financial instrument

Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

(XXII) Financial risk management

(XXIII)Capital management

(XXIV)Investment and financing activities in non-cash investment

Notes on ELITE MATERIAL CO., LTD. AND SUBSIDIARIES Consolidated Financial Statements (Cont.)

VII. Related party transaction

EMC Interim / Quarterly Report 2023