EMIC — Audit Report / Information 2023

Nov 14, 2023

Stock code: 2614

EASTERN MEDIA INTERNATIONAL CORPORATION

Parent Company Only Financial Statements

With Independent Auditors’ Report

For the Years Ended December 31, 2023 and 2022

Address: 5F & 8F., No. 368, Sec. 1, Fuxing S. Rd., Da'an Dist., Taipei City 106, Taiwan Telephone: 886-2-27557565

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

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Table of Contents

Table of Contents
Contents 1. Cover Page 2. Table of Contents 3. Independent Auditors’ Report 4. Parent Company Only Balance Sheet 5. Parent Company Only Statements of Comprehensive Income 6. Parent Company Only Statements of Changes in Equity 7. Parent Company Only Statements of Cash Flows 8. Notes to the Parent Company Only Financial Statements I. Company history II. Approval date and procedures of the consolidated financial statements III. New standards, amendments and interpretations adopted IV. Summary of significant accounting policies V. Significant accounting assumptions and judgments, and major sources of estimation uncertainty VI. Explanation of significant accounts VII. Related party transactions VIII. Pledged assets IX. Significant commitments and contingencies X. Losses due to major disasters XI. Subsequent Events XII. Other XIII. Other disclosures (I) Information on significant transactions (II) Information on investees (III) Information on investment in Mainland China (IV) Major shareholders XIV. Segment information XV. List of major account titles	Page	Note
	1 2 3～6 7～8 9 10～11 12～13 14 14 14～15 15～29 29～30 30～56 56～60 60 60～61 61 62 62～63 63～64, 70～77 63～64, 78～79 63～64 80～81 63～64, 82 64 67～69	1 2 3 4 5 6～29 30 31 32 33 34 35 36 36 36 36 36 37

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Independent Auditors’ Report

To the Board of Directors of Eastern Media International Corporation:

Opinion

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

In our opinion, based on our audits and the reports of other auditors (please refer to Other Matter paragraph), the accompanying parent Company only financial statements present fairly, in all material respects, the parent Company only financial position of the Company as of December 31, 2023 and 2022, and its parent Company only financial performance and its parent Company only cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and the auditing standards generally accepted in the Republic of China. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Certified Public Accountants Code of Professional Ethics in Republic of China (" the Code"), and we have fulfilled our other ethical responsibilities in accordance with the Code. Based on our audits and the reports of other auditors, we believe that the audit evidence we have obtained, is sufficient and appropriate to provide a basis for our opinion.

Other Matter

We did not audit the parent Company only financial statements of partial companies, associates of the Company, which represented investments in other entities accounted for using the equity method. Those statements were audited by other auditors, whose reports have been furnished to us, and our opinion, insofar as it relates to the amounts included for partial companies, is based solely on the reports of other auditors. The investments in partial companies accounted for using the equity method constituting 13.17% and 14.64% of total assets at December 31, 2023 and 2022, respectively, and the related share of profit of associates accounted for using the equity method constituting 49.45% and 14.50% of total loss before tax for the years then ended December 31, 2023 and 2022, respectively.

Key Audit Matters

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

1. Warehousing Revenue recognition

Please refer to Note 4n "Revenue recognition" for accounting policy related to revenue recognition, and Note 23 "Revenue from contracts with customers" to the parent Company only financial statements.

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Description of key audit matter:

Major of the operating revenue sources of the Company are the services of warehousing amounted to $1,436,570 thousand, constituting 100.00% of its Company revenue. The impact of revenue recognition on financial report is significant. Therefore, revenue recognition is one of the key matters in our audit.

How the matter was addressed in our audit:

In response to the risk mentioned above, we planned to perform the following audit procedures: understanding the sales and collection cycle, and sampling to test the effectiveness of manual control and internal control. Additionally, we would perform test of detail on revenue of warehousing; as well as perform sales cut off test on the periods before and after the balance sheet date by inspecting relevant documents of sales transactions to determine whether sales had been appropriately recognized.

• 2.The investments accounted of using equity method impairment

• Please refer to Note 4m “Impairment of non-financial assets” for accounting policy related to the investments accounted of using equity method impairment, and Note 12 " investments accounted for using equity method " to the parent Company only financial statements.

Description of key audit matter:

The investments accounted of using equity method of the Company constituted 38% of its parent Company only assets. The evaluation of the impairment on December 31 is significant to the parent Company only financial statements. There are risks that the assumption of the financial performance and cash flows related to the Company’ s subsidiaries and associates which Management uses remains a highly uncertainty. This risk may affect the recoverability of the asset mentioned above. Therefore, the evaluation of the investments accounted of using equity method impairment is one of the key matters in our audit.

How the matter was addressed in our audit:

In response to the risk mentioned above, we planned to perform the following audit procedures: obtaining the information on which the management relied to make assumptions and evaluations for the report made by external expert; engaging evaluation experts to assess the appropriateness of the evaluation methods and assumptions used by them, including the discount rate and the forecast of future cash flows; comparing the forecasted and historical data, past forecasts and actual conditions; evaluating the reasonableness of past management’ s estimates.

Responsibilities of Management and Those Charged with Governance for the Parent Company Only Financial Statements

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

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

Those charged with governance (including the Audit Committee) are responsible for overseeing the Company’ s financial reporting process.

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Auditors’ Responsibilities for the Audit of the parent Company only Financial Statements

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

As part of an audit in accordance with auditing standards generally accepted in the Republic of China, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

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

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

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

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

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

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

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

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the parent Company only financial statements of the

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

The engagement partners on the audit resulting in this independent auditors’ report are Shih Chin Chih and Hsin-Ting Huang.

KPMG Taipei, Taiwan (Republic of China) February 26, 2024

Notes to Readers

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

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

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EASTERN MEDIA INTERNATIONAL CORPORATION Parent Company Only Balance Sheets

(Expressed in Thousands of New Taiwan Dollars)

Assets Current assets: 1100 Cash and cash equivalents (Notes 6) 1110 Current financial assets at fair value through profit or loss (Notes 7 and 31) 1170 Accounts receivable, net (Notes 9 and 23) 1200 Other receivables, net (Notes 7 and 10) 1210 Other receivables due from related parties (Notes 10 and 30) 130X Inventories (Notes 11) 1410 Prepayments 1476 Other current financial assets (Notes 6 and 31) Non-current assets: 1517Non-current financial assets at fair value through other comprehensive income (Note 8) 1550 Investments accounted for using equity method, net (Notes 12 and 31) 1600 Property, plant and equipment (Notes 13, 14, 29 and 31) 1755 Right of use assets (Notes 14, 18 and 31) 1780 Intangible assets (Notes 29) 1840 Deferred tax assets (Note 5 and 20) 1920 Refundable deposits (Note 31) 1980 Other non-current financial assets (Note 31) 1990 Other non-current assets, others (Notes 32) Total assets	December 31, 2023	December 31, 2022
	Amount ％ $ 379,507 4 839,275 9 20,970 - 7,459 - 304,850 3 32,283 - 7,602 - 42,772 1 1,634,718 17 7,500 - 3,585,759 38 712,428 8 3,168,904 34 2,655 - 132,535 1 117,657 1 4,554 - 81,813 1 7,813,805 83 $ 9,448,523 100	Amount ％ $ 424,348 5 811,095 9 33,675 - 3,259 - 315,667 3 32,773 - 7,489 - 94 - 1,628,400 17 7,500 - 3,253,698 35 700,484 8 3,387,080 36 2,477 - 187,799 2 158,621 2 4,000 - 2,377 - 7,704,036 83 $ 9,332,436 100

(Please see accompanying notes to the parent company only financial statements.)

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EASTERN MEDIA INTERNATIONAL CORPORATION Parent Company Only Balance Sheets (Cotn'd)

(Expressed in Thousands of New Taiwan Dollars)

Liabilities and Equity Current liabilities: 2100 Short-term loans (Notes 15 and 31) 2110 Short-term notes and bills payable (Notes 16 and 29) 2130 Current contract liabilities (Notes 23) 2200 Other payables (Notes 24 and 29) 2220 Other payables due from related parties (Notes 30) 2230 Current tax liabilities 2280 Current lease liabilities (Notes 18) 2320 Long-term liabilities, current portion (Notes 17, 29 and 31) 2399 Other current liabilities, others Non-current liabilities: 2540 Long-term loans (Notes 17, 29 and 31) 2580 Non-current lease liabilities (Notes 18) 2640 Net defined benefit liability, non-current (Note 19) 2645 Guarantee deposits received 2670 Other non-current liabilities, others (Note 12) Total liabilities Equity attributable to owners of parent (Note 12 and 21) 3100 Capital stock 3200 Capital surplus 3300 Retained earnings 3400 Other equity interest Total equity Total liabilities and equity	December 31, 2023	December 31, 2022
	Amount ％ $ 103,000 1 - - - - 260,317 3 2,159 - - - 182,074 2 72,371 1 13,363 - 633,284 7 1,313,659 14 3,116,912 33 6,325 - 360 - 1,076,049 11 5,513,305 58 6,146,589 65 3,002,431 32 15,992 - 384,991 4 ( 101,480) ( 1) 3,301,934 35 $ 9,448,523 100	Amount ％ $ 170,000 2 99,941 1 2,145 - 257,614 3 182,976 2 229 - 182,964 2 19,668 - 13,737 - 929,274 10 899,352 10 3,298,828 35 1,799 - 360 - 668,768 7 4,869,107 52 5,798,381 62 4,760,554 51 15,992 - ( 1,098,138) ( 12) ( 144,353) ( 1) 3,534,055 38 $ 9,332,436 100

(Please see accompanying notes to the parent company only financial statements.)

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EASTERN MEDIA INTERNATIONAL CORPORATION Parent Company Only Statements of Comprehensive Income

(Expressed in Thousands of New Taiwan Dollars, Except for Earnings Per Share)

4000Operating revenue (Notes 23) 5000Operating costs (Notes 11, 19, 24 and 30) Gross profit from operations 6000Operating expenses (Notes 19, 24 and 30) Net operating gain Non-operating income and expenses: 7100 Interest income (Notes 25 and 30) 7010 Other income (Notes 7, 8, 25 and 30) 7020 Other gains and losses, net (Notes 12, 25 and 30) 7050 Finance costs (Notes 18, 25 and 30) 7370Share of loss (profit) of associates accounted for using equity method (Note 12) 7900Net loss before tax 7950Less: tax expenses (Note 20) Net loss 8300Other comprehensive income: 8310 Components of other comprehensive income that will not be reclassified to profit or loss 8311 Remeasurements of defined benefit plans 8330Share of other comprehensive (loss) / gain of subsidiaries, associates and joint ventures accounted for using equity method Total other comprehensive income that will not be reclassified to profit or loss 8360 Components of other comprehensive income (loss) that will be reclassified to profit or loss 8361 Exchange differences on translation of foreign financial statements 8380 Share of other comprehensive income of subsidiaries, associates and joint ventures accounted for using equity method, components of other comprehensive (loss) / gain that will be reclassified to profit or loss 8399Less: Income tax related to components of other comprehensive income that will be reclassified to profit or loss Total other comprehensive income that will be reclassified to profit or loss 8300Other comprehensive income, net of tax Total comprehensive loss Loss per share (Unit: NT$) (Note 22) 9750Basic loss per share	For theyears ended December 31	For theyears ended December 31	For theyears ended December 31
	2023		2022
	Amount	％	Amount	％
	$ 1,436,570 662,911	100 46	$ 1,479,159 654,992	100 44
	773,659 300,634	54 21	824,167 317,605	56 21
	473,025	33	506,562	35
	23,086 40,389 ( 48,322) ( 152,820) ( 554,535)	2 3 ( 3) ( 11) ( 39)	14,821 92,894 ( 216,112) ( 126,585) ( 1,681,693)	1 6 ( 15) ( 9) ( 114)
	( 219,177) 53,588	( 15) 4	( 1,410,113) 244,989	( 96) 16
	( 272,765)	( 19)	( 1,655,102)	( 112)
	( 7,199) ( 2,537)	( 1) -	13,465 37,173	1 2
	( 9,736)	( 1)	50,638	3
	50,627 ( 3,896) -	4 - -	136,147 30,005 -	9 2 -
	46,731	4	166,152	11
	36,995	3	216,790	14
	( $ 235,770)	( 16)	( $ 1,438,312)	( 98)
	( $	0.91)	( $	5.06)

(Please see accompanying notes to the parent company only financial statements.)

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EASTERN MEDIA INTERNATIONAL CORPORATION Parent Company Only Statements of Changes in Equity (In Thousands of New Taiwan Dollars)

Balance at January 1, 2022 Loss for the year ended December 31, 2022 Other comprehensive income, for the year ended December 31, 2022 Total comprehensive income for the year ended December 31, 2022 Appropriation and distribution of retained earnings: Legal reserve appropriated Special reserve appropriated Cash dividends of ordinary share Capital reduction Difference between consideration and carrying-amount of subsidiaries acquired or disposed Changes in subsidiaries Changes in investments accounted for using equity method Others Balance at December 31, 2022	Share capital	Capital surplus	Retained earnings	Retained earnings	Retained earnings	Total other equityinterest	Total other equityinterest	Total other equityinterest	Total equity
						Exchange differences on translation of foreign financial statements	Unrealized gains (losses) on financial assets measured at fair value through other comprehensive income	Revaluation surplus
			Legal reserve	Special reserve	Unappropriated retained earnings
	Ordinary shares
	$ 5,289,504 - -	$ 16,243 - -	$ 238,768 - -	$ 295,956 - -	$ 749,821 ( 1,655,102) 14,534	( $ 342,910) - 166,152	( $ 3,699) - 4,989	- - 31,115	$ 6,243,683 ( 1,655,102) 216,790
	-	-	-	-	( 1,640,568)	166,152	4,989	31,115	( 1,438,312)
	- - - ( 528,950) - - - - $ 4,760,554	- - - - - 388 - ( 639) $ 15,992	74,607 - - - - - - - $ 313,375	- 50,654 - - - - - - $ 346,610	( 74,607) ( 50,654) ( 528,950) - ( 5,664) - ( 207,501) - ( $ 1,758,123)	- - - - - - - - ( $ 176,758)	- - - - - - - - $ 1,290	- - - - - - - - $ 31,115	- - ( 528,950) ( 528,950) ( 5,664) 388 ( 207,501) ( 639) $ 3,534,055

(Please see accompanying notes to the parent company only financial statements.)

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EASTERN MEDIA INTERNATIONAL CORPORATION Parent Company Only Statements of Changes in Equity (Cotn'd) (In Thousands of New Taiwan Dollars)

Balance at December 31, 2023 Loss for the year ended December 31, 2023 Other comprehensive income, for the year ended December 31, 2023 Total comprehensive income for the year ended December 31, 2023 Capital reduction Changes in investments accounted for using equity method Balance at December 31, 2023	Share capital	Capital surplus	Retained earnings	Retained earnings	Retained earnings	Total other equityinterest	Total other equityinterest	Total other equityinterest	Total equity
						Exchange differences on translation of foreign financial statements	Unrealized gains (losses) on financial assets measured at fair value through other comprehensive income	Revaluation surplus
			Legal reserve	Special reserve	Unappropriated retained earnings
	Ordinary shares
	$ 4,760,554 - -	$ 15,992 - -	$ 313,375 - -	$ 346,610 - -	( $ 1,758,123) ( 272,765) ( 5,878)	( $ 176,758) - 46,731	$ 1,290 - ( 3,858)	$ 31,115 - -	$ 3,534,055 ( 272,765) 36,995
	-	-	-	-	( 278,643)	46,731	( 3,858)	-	( 235,770)
	( 1,758,123) - $ 3,002,431	- - $ 15,992	- - $ 313,375	- - $ 346,610	1,758,123 3,649 ( $ 274,994)	- - ( $ 130,027)	- - ( $ 2,568)	- - $ 31,115	- 3,649 $ 3,301,934

(Please see accompanying notes to the parent company only financial statements.)

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EASTERN MEDIA INTERNATIONAL CORPORATION

Parent Company Only Statements of Cash Flows

(Expressed in Thousands of New Taiwan Dollars)

Cash flows (used in) from operating activities: Net loss before tax Adjustments: Adjustments to reconcile profit (loss) Depreciation expense Amortization expense Net (gain) loss on financial assets or liabilities at fair value through profit or loss Interest expense Interest income Dividend income Share of profit of associates and joint ventures accounted for using equity method Loss on disposal of investments Total adjustments to reconcile profit Changes in operating assets and liabilities: Changes in operating assets, net: Increase in current financial assets at fair value through profit or loss Decrease (increase) in accounts receivable Decrease in other receivable Increase in inventories (Increase) decrease in prepayments Decrease in other current assets Total changes in operating assets, net Changes in operating liabilities, net: (Decrease) increase in current contract liabilities Decrease in notes payable Increase (decrease) in other payables (including related parties) (Decrease) increase in other current liabilities Decrease in net defined benefit liability, non-current Total changes in operating liabilities Net changes in operating assets and liabilities Total adjustments Cash inflow generated from operations Tax income (paid) refunded Net cash inflow from operating activities	For theyears ended December 31	For theyears ended December 31
	2023	2022
	( $ 219,177) 289,683 2,089 ( 13,620) 152,820 ( 23,086) ( 28,840) 554,535 63,146	( $ 1,410,113) 281,331 1,170 198,332 126,585 ( 14,821) ( 51,475) 1,681,693 -
	996,727	2,222,815
	( 14,560) 12,705 1,524 ( 1,219) ( 113) -	( 323,488) ( 17,610) 2,217 ( 3,247) 2,282 196
	( 1,663)	( 339,650)
	( 2,145) - 12,744 ( 374) ( 2,673)	2,145 ( 38) ( 1,447) 3,624 ( 2,017)
	7,552	2,267
	5,889	( 337,383)
	1,002,616	1,885,432
	783,439 ( 325) 783,114	475,319 10,573 485,892

(Please see accompanying notes to the parent company only financial statements.)

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EASTERN MEDIA INTERNATIONAL CORPORATION Parent Company Only Statements of Cash Flows (Cotn’d) (Expressed in Thousands of New Taiwan Dollars)

Cash flows from (used in) investing activities: Acquisition of f investments accounted for using equity method Proceeds from disposal of subsidiaries Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Increase in refundable deposits Decrease in other receivables due from related parties Acquisition of intangible assets Increase in other financial assets Increase in other non-current assets Interest received Dividends received Net cash flows used in investing activities Cash flows from (used in) financing activities: Increase in short-term loans Decrease in short-term loans (Decrease) increase in short-term notes and bills payable Increase in long-term loans Decrease in long-term loans Decrease in other receivables due from related parties Payment of lease liabilities Capital reduction Issuance cash dividends Interest paid Net cash flows used in financing activities Net decrease in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period	For theyears ended December 31	For theyears ended December 31
	2023	2022
	( $ 550,000) 5,035 ( 122,999) 29,236 ( 136) 8,000 ( 2,229) ( 2,132) ( 79,436) 22,611 27,566	( $ 636,250) - ( 125,874) - ( 41,135) 92,000 ( 2,293) ( 2,806) ( 3,736) 15,005 359,890
	( 664,484)	( 345,199)
	443,000 ( 510,000) ( 100,000) 511,250 ( 40,000) ( 125,796) ( 183,015) - - ( 158,910)	616,000 ( 446,000) 100,000 848,000 ( 20,000) ( 208) ( 257,196) ( 528,950) ( 528,950) ( 132,457)
	( 163,471)	( 349,761)
	( 44,841) 424,348 $ 379,507	( 209,068) 633,416 $ 424,348

(Please see accompanying notes to the parent company only financial statements.)

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Notes To the Parent Company Only Financial Statements For The Years Ended December 31, 2023 and 2022 (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

EASTERN MEDIA INTERNATIONAL CORPORATION

1. Company history

Eastern Media International Corporation (the “Company”) was established on May 14, 1975 to promote the private port silo business, and its warehouse officially opened in 1980 with the completion of its silo. In order to enhance the operating performance and expand the business scope, the Company merged with Grain Union Transport Ltd. on May 15, 1989. The Company’s shares listed on the Taiwan Stock Exchange, classified in the shipping category, on September 25, 1995. As the proportion of revenue from shipping has declined years by years, and the proportion of revenue from trading has increased to more than 50% of overall revenue, the Company’ s stocks have changed classification to the retail sales category. The transfer was approved by the Taiwan Stock Exchange on July 1, 2014. In June 2019, the Company terminated all of the lease contracts of its shipping operations in advance. Since none of the operating segments owns more than 50% of overall revenue, the Company’s stocks have changed classification to other category, which was approved by the Taiwan Stock Exchange on June 1, 2021.

The Company's business development is mainly based on diversification. In addition to land development, grain trading and consumer product development and sales, the Company has diversified into new businesses such as cross-strait trade platform and multimedia shopping through its investment in subsidiaries since 2009.

The main businesses of the Company include forwarding, loading and unloading cargo onto/from ships, the handling and operation of wharf and transit shed facilities.

2. Approval date and procedures of the financial statements

The financial statements were authorized for issuance by the Board of Directors on March 14, 2023.

3. New standards, amendments and interpretations adopted

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

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

• Amendments to IAS 1 “Disclosure of Accounting Policies”

• Amendments to IAS 8 “Definition of Accounting Estimates”

• Amendments to IAS 12“Deferred Tax related to Assets and Liabilities arising from a Single Transaction”

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

• Amendments to IAS 12 “International Tax Reform—Pillar Two Model Rules

• b.

• The impact of IFRS issued by the FSC but not yet effective

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

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• Amendment to IAS 1 “Classification of Liabilities as Current or Non-current”

• Amendment to IAS 1 “Non-current Liabilities with Covenants”

• Amendment to IAS 7 and IFRS 7 “Supplier Financing Arrangements”

• Amendments to IFRS 16“Leases Liability in a Sale and Leaseback

• c. The impact of IFRS issued by IASB but not yet endorsed by the FSC

The Company is evaluating the impact of its initial adoption of the abovementioned standards or interpretations on its consolidated financial position and consolidated financial performance. The results thereof will be disclosed when the Company completes its evaluation.

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

• Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets Between an Investor and Its Associate or Joint Venture”

• IFRS 17 “ Insurance Contracts” and amendments to IFRS 17 “ Insurance Contracts”

• Amendment to IFRS 17 “Initial Application of IFRS 17 and IFRS 9-Comparative Information”

• Amendments to IAS21“Lack of Exchangeability”

4. Summary of significant accounting policies

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

• a. Statement of compliance

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

• b. Basis of preparation

• (a) Basis of measurement

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

(a-1) Financial instruments at fair value through profit or loss are measured at fair value;

• (a-2) Financial assets at fair value through other comprehensive income are measured at fair value;

• (a-3) The defined benefit liabilities (assets) are measured at the plan assets less the present value of the defined benefit obligation, limited as explained in Note 4o,

• (b) Functional and presentation currency

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

• c. Foreign currencies

• (a) Foreign currency transactions

Transactions in foreign currencies are translated into the respective functional currencies

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

Foreign currency differences arising on retranslation are recognized in profit or loss, except for those differences relating to fair value through other comprehensive income equity investment, which are recognized in other comprehensive income.

(b) Foreign operations

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

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

When the settlement of a monetary receivable from or payable to a foreign operation is neither planned nor likely in the foreseeable future. Exchange differences arising thereon form part of the net investment in the foreign operation and are recognized in other comprehensive income.

• d. Classification of current and non current assets and liabilities

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

• (a) It is expected to be realized, or intended to be sold or consumed, in the normal operating cycle;

• (b) It is held primarily for the purpose of trading;

• (c) It is expected to be realized within twelve months after the reporting period; or

• (d)The asset is cash or a cash equivalent unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

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

An entity shall classify a liability as current when:

• (a) It is expected to be settled in the normal operating cycle;

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• (b) It is held primarily for the purpose of trading;

• (c) It is due to be settled within twelve months after the reporting period; or

• (d) The Company does not have an unconditional right to defer settlement of at least twelve months after the reporting period. Terms of a liability that could, at the option of the counterparty, result in its settlement by issuing equity instruments do not affect its classification.

• e. Cash and cash equivalents

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

f. Financial instruments

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

(a) Financial assets

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

On initial recognition, financial assets are classified into the following categories: measured at amortized cost, fair value through other comprehensive income (FVOCI) and fair value through profit or loss (FVTPL). Financial assets are not reclassified subsequent to their initial recognition unless the Company changes its business model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model. (a-1) Financial assets measured at amortized cost

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

• ‧it is held within a business model whose objective is to hold assets to collect contractual cash flows; and

• ‧ its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

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

(a-2) Fair value through other comprehensive income (FVOCI)

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A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL ：

• ‧it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and

• ‧its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

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

Debt investments at FVOCI are subsequently measured at fair value. Interest income calculated using the effective interest method, foreign exchange gains and losses and impairment are recognized in profit or loss. Other net gains and losses are recognized in other comprehensive income. On derecognition, gains and losses accumulated in other comprehensive income are reclassified to profit or loss.

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

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

(a-3) Fair value through profit or loss (FVTPL)

All financial assets not classified as amortized cost or FVOCI (such as financial assets held for trading, financial assets evalued permance and managed on the basis of fair value) described as above are measured at FVTPL, including derivative financial assets. On initial recognition, the Company may irrevocably designate a financial asset, which meets the requirements to be measured at amortized cost or at FVOCI, as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

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

(a-4) Business model assessment

The Company makes an assessment of the objective of the business model in which a financial asset is held at portfolio level because this best reflects the way the business is managed and information is provided to management. The information considered includes ：

• ‧the stated policies and objectives for the portfolio and the operation of those policies in practice. These include whether management’s strategy focuses on earning contractual interest income, maintaining a particular interest rate profile, matching the duration of the financial assets to the duration of any related liabilities or expected cash outflows or realizing cash flows through the sale of the assets;

• ‧how the performance of the portfolio is evaluated and reported to the Company’s management;

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• ‧the risks that affect the performance of the business model (and the financial assets held within that business model) and how those risks are managed;

• ‧how managers of the business are compensated ─ e.g. whether compensation is based on the fair value of the assets managed or the contractual cash flows collected; and

• ‧the frequency, volume and timing of sales of financial assets in prior periods, the reasons for such sales and expectations about future sales activity.

Transfers of financial assets to third parties in transactions that do not qualify for derecognition are not considered sales for this purpose, and are consistent with the Company’ s continuing recognition of the assets.

• (a-5) Assessment whether contractual cash flows are solely payments of principal and interest

For the purposes of this assessment, ‘principal’ is defined as the fair value of the financial assets on initial recognition. ‘Interest’ is defined as consideration for the time value of money and for the credit risk associated with the principal amount outstanding during a particular period of time and for other basic lending risks and costs, as well as a profit margin.

In assessing whether the contractual cash flows are solely payments of principal and interest, the Company considers the contractual terms of the instrument. This includes assessing whether the financial asset contains a contractual term that could change the timing or amount of contractual cash flows such that it would not meet this condition. In making this assessment, the Company considers ： ‧contingent events that would change the amount or timing of cash flows ；

‧terms that may adjust the contractual coupon rate, including variable rate features ；

‧prepayment and extension features ； and

• ‧terms that limit the Company’s claim to cash flows from specified assets (e.g. non recourse features).

(a-6) Impairment of financial assets

The Company recognizes loss allowances for expected credit losses (ECL) on financial assets measured at amortized cost (including cash and cash equivalents, amortized costs, notes and trade receivable, other receivable, refundable deposits and other financial assets).

The Company measures loss allowances at an amount equal to lifetime expected credit loss (ECL), except for the following which are measured as 12-month ECL ： ‧debt securities that are determined to have low credit risk at the reporting date ；

and

• ‧other debt securities and bank balances for which credit risk (i.e. the risk of default occurring over the expected life of the financial instrument) has not increased significantly since initial recognition.

Loss allowance for trade receivables and contract assets are always measured at an amount equal to lifetime ECL.

When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECL, the Company considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative

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information and analysis based on the Company’ s historical experience and informed credit assessment as well as forward-looking information.

The Company considers a debt security to have low credit risk when its credit risk rating is equivalent to the globally understood definition of ‘investment grade which is considered to be BBB or higher per Standard & Poor’s, Baa3 or higher per Moody’s or twA or higher per Taiwan Ratings.

The Company assumes that the credit risk on a financial asset has increased significantly if it is more than 30 days past due.

The Company considers a financial asset to be in default when the financial asset is more than 90 days past due or the debtor is unlikely to pay its credit obligations to the Company in full.

Lifetime ECLs are the ECLs that result from all possible default events over the expected life of a financial instrument.

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

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

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

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

• ‧ significant financial difficulty of the borrower or issuer ；

• ‧ a breach of contract such as a default or being more than 90 days past due ；

• ‧ the lender of the borrower, for economic or contractual reasons relating to the borrower's financial difficulty, having granted to the borrower a concession that the lender would not otherwise consider ；

• ‧ it is probable that the borrower will enter bankruptcy or other financial reorganization ； or

• ‧ the disappearance of an active market for a security because of financial difficulties.

Loss allowances for financial assets measured at amortized cost are deducted from the gross carrying amount of the assets. For debt securities at FVOCI, the loss allowance is recognized in other comprehensive income instead of reducing the carrying amount of the asset. The Company recognizes the amount of expected credit losses (or reversal) in profit or loss, as an impairment gain or loss.

The gross carrying amount of a financial asset is written off when the Company has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof. The Company individually makes an assessment with respect to

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the timing and amount of write-off based on whether there is a reasonable expectation of recovery. The Company expects no significant recovery from the amount written off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with the Company’ s procedures for recovery of amounts due.

(a-7) Derecognition of financial assets

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

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

• (b) Financial liabilities and equity instruments

(b-1) Financial liabilities

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

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

(b-2) Derecognition of financial liabilities

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

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

(b-3) Offsetting of financial assets and liabilities

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

• g. Inventories

Inventories are measured at the lower of cost and net realizable value. The cost of

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inventories includes expenditure incurred in acquiring the inventories and capitalized borrowing costs incurred in bringing them to their existing location and condition.

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

• h. Investment in associates

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

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

The parent company only financial statements include the Company’s share of the profit or loss and other comprehensive income of those associates, after adjustments to align their accounting policies with those of the Company, from the date on which significant influence commences until the date on which significant influence ceases. The Company recognizes any changes of its proportionate share in the investee within capital surplus, when an associate’s equity changes due to reasons other than profit and loss or comprehensive income, which did not result in changes in actual significant influence.

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

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

The Company discontinues the use of the equity method and measures the retained interest at fair value from the date when its investment ceases to be an associate. The difference between the fair value of retained interest and proceeds from disposing, and the carrying amount of the investment at the date the equity method was discontinued is recognized in profit or loss. The Company accounts for all the amounts previously recognized in other comprehensive income in relation to that investment on the same basis as would have been required if the associates had directly disposed of the related assets or liabilities. If a gain or loss previously recognized in other comprehensive income would be reclassified to profit or loss (or retained earnings) on the disposal of the related assets or liabilities, the Company reclassifies the gain or loss from equity to profit or loss (as a reclassification adjustment) (or retained earnings)when the equity method is discontinued.

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

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be required if the associate had directly disposed of the related assets or liabilities

• i. Subsidiaries

The subsidiaries in which the Company holds controlling interest are accounted for under equity method in the parent company only financial statements. Under equity method, the net income, other comprehensive income and equity in the parent company only financial statement are the same as those attributable to the owners of parent in the consolidated financial statements.

The change in ownership of the subsidiaries not causing losing control, are recognized as equity transaction. The Company recognizes directly in equity any difference between the carrying-amount of the investment and the fair value of the consideration paid or received.

• j. Property, plant and equipment

• (a) Recognition and measurement

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

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

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

• (b) Subsequent cost

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

• (c) Depreciation

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

Land is not depreciated.

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

comparative periods are as follows:
Buildings	5~55 years
Transportation equipment	5 years
Leasehold improvements	1~20 years
Miscellaneous equipment	3~20 years

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

k. Leases

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

• (a) As a leasee

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

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

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

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

• － fixed payments, including in-substance fixed payments;

• － variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;

• － amounts expected to be payable under a residual value guarantee; and

• － payments for purchase or termination options that are reasonably certain to be exercised.

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

• － there is a change in future lease payments arising from the change in an index or rate; or

• － there is a change in the Company’ s estimate of the amount expected to be payable under a residual value guarantee; or

• － there is a change in the lease term resulting from a change of its assessment on whether it will exercise an option to purchase the underlying asset, or

• － there is a change of its assessment on whether it will exercise an extension or termination option; or

• － there is any lease modifications

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

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

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

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The Company has elected not to recognize right-of-use assets and lease liabilities for short-term leases of office equipment that have a lease term of 12 months or less and leases of low-value assets, including IT equipment. The Company recognizes the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

As a practical expedient, the Company elects not to assess whether all rent concessions that meets all the following conditions are lease modifications or not:

• － the rent concessions occurring as a direct consequence of the COVID 19 pandemic;

• － the change in lease payments that resulted in revised consideration for the lease that is substantially the same as, or less than, the consideration for the lease immediately preceding the change;

• － any reduction in lease payments that affects only those payments originally due on, or before, June 30, 2022; and

• － there is no substantive change in other terms and conditions of the lease.

In accordance with the practical expedient, the effect of the change in the lease liability is reflected in profit or loss in the period in which the event or condition that triggers the rent concession occurs.

• (b) As a leasor

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

When the Company is an intermediate lessor, it accounts for its interests in the head lease and the sub-lease separately. It assesses the lease classification of a sub-lease with reference to the right-of-use asset arising from the head lease. If a head lease is a shortterm lease to which the Company applies the exemption described above, then it classifies the sub-lease as an operating lease.

• l. Intangible assets

• (a)Recognition and measurement

Goodwill arising on the acquisition of subsidiaries is measured at cost, less accumulated impairment losses.

Other intangible assets, including customer relationships, patents and trademarks, that are acquired by the Company and have finite useful lives are measured at cost less accumulated amortization and any accumulated impairment losses.

• (b) Subsequent expenditure

Subsequent expenditure is capitalized only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditures, including expenditure on internally generated goodwill and brands, are recognized in profit or loss as incurred.

• (c) Amortization

Amortization is calculated over the cost of the asset, less its residual value, and is

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recognized in profit or loss on a straight-line basis over the estimated useful lives of intangible assets, other than goodwill, from the date that they are available for use.

The estimated useful lives for current and comparative periods are as follows:

～ Computer software 1 3 years

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

• m. Impairment of non-financial assets

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

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

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

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

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

An impairment loss in respect of goodwill is not reversed. For other assets, an impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized.

n. Revenue recognition

Revenue is measured based on the consideration to which the Company expects to be entitled in exchange for transferring goods or services to a customer. The Company recognizes revenue when it satisfies a performance obligation by transferring control of a good or a service to a customer.

The Company is involved in loading and unloading, warehousing, ticket system construction and integration services, and recognizes relevant revenue during the financial reporting period of providing labor services.

In case of fixed-price contracts, the customer pays the fixed amount based on a payment schedule. If the services rendered by the Company exceed the payment, a contract asset is recognized. If the payments exceed the services rendered, a contract liability is recognized.

• o. Employee benefits

• (a) Defined contribution plans

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

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(b) Defined benefit plans

The Company’ s net obligation in respect of defined benefit plans is calculated by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of plan assets.

The calculation of defined benefit obligations is performed annually by a qualified actuary using the projected unit credit method. When the calculation results in a potential asset for the Company, the recognized asset is limited to the present value of economic benefits available in the form of any future refunds from the plan or reductions in future contributions to the plan. To calculate the present value of economic benefits, consideration is given to any applicable minimum funding requirements.

Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognized immediately in other comprehensive income, and accumulated in retained earnings within equity. The Company determines the net interest expense (income) on the net defined benefit liability for the period by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the then net defined benefit liability. Net interest expense and other expenses related to defined benefit plans are recognized in profit or loss.

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

• (c) Short-term employee benefits

Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided.

A liability is recognized for the amount expected to be paid under short-term cash bonus or profit-sharing plans if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee, and the obligation can be estimated reliably.

p. Income taxes

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

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

Deferred taxes arise due to temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their respective tax bases. Deferred taxes are not recognized except for the following:

• (a) temporary differences on the initial recognition of assets and liabilities (i) in a transaction that is not a business combination and that affects neither accounting nor taxable profits (losses) at the time of the transaction and (ii) in a transaction that did not generate comparing taxable income and temporary differences;

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• (b) temporary differences related to investments in subsidiaries, associates and joint arrangements to the extent that the Company is able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future; and

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

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

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

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

• (a) the Company has a legally enforceable right to set off current tax assets against current tax liabilities; and

• (b) the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority on either:

  • (b-1) the same taxable entity; or

  • (b-2) different taxable entities which intend to settle current tax assets and liabilities on a net basis, or to realize the assets and liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.

• q. Business combination

The Company accounts for business combinations using the acquisition method. The goodwill arising from an acquisition is measured as the excess of (i) the consideration transferred (which is generally measured at fair value) and (ii) the amount of non controlling interest in the acquiree, both over the identifiable net assets acquired at the acquisition date. If the amount calculated above is a deficit balance, the Company recognized that amount as a gain on a bargain purchase in profit or loss immediately after reassessing whether it has correctly identified all of the assets acquired and all of the liabilities assumed.

All acquisition related transaction costs are expensed as incurred, except for the issuance of debt or equity instruments.

For each business combination, the Company measures any non controlling interests in the acquiree either at fair value or at the non controlling interest’s proportionate share of the acquiree’s identifiable net assets, if the non controlling interests are present ownership interests and entitle their holders to a proportionate share of the acquire’s net assets in the event of liquidation. Other components of non controlling interests are measured at their acquisition date fair values, unless another measurement basis is required by the IFRSs endorsed by the FSC.

• r. Earnings per share

The Company discloses the Company’s basic and diluted earnings (loss) per share attributable to ordinary shareholders of the Company. Basic earnings per share is calculated as the profit attributable to the ordinary shareholders of the Company divided by the weighted average number of ordinary shares outstanding. Diluted earnings per share is

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calculated as the profit attributable to ordinary shareholders of the Company divided by the weighted average number of ordinary shares outstanding after adjustment for the effects of all potentially dilutive ordinary shares.

• s. Operating segments

Please refer to the consolidated financial report of Eastern Media International Corporation for the years ended December 31, 2023 and 2022 for operating segments information.

5. Significant accounting assumptions and judgments, and major sources of estimation uncertainty:

The preparation of the financial statements in conformity with the Regulations Governing the Preparation of Financial Reports by Securities Issuers requires management to make judgments, estimates, and assumptions that affect the application of the accounting policies and the reported amount of assets, liabilities, income and expenses. Actual results may differ from these estimates.

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

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

• a. Refer to the consolidated financial statement for the years ended December 31, 2023 for judgment regarding control of subsidiaries.

• b. Lease term

The Company determines the lease term as the non-cancellable period of the lease, together with periods covered by an option to extend the lease if the lessee is reasonably certain to exercise that option, and periods covered by an option to terminate the lease if the lessee is reasonably not to exercise that option. In assessing whether a lessee is reasonably to exercise the options, the Company considers all relevant facts and circumstances that create an economic incentive for the lessee. The Company reassesses whether it is reasonably certain to exercise an extension option or not to exercise the option upon the occurrence of either a significant event or a significant change in circumstances that is within the control of the lessee. If there is a change in the lease term, the Company recognizes the amount of the remeasurement of the lease liability as an adjustment to the right-of-use asset. Please refer to Note 14 and 18.

Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment to the carrying amounts of assets and liabilities within the next financial year is as follows. Those assumptions and estimation have been updated to reflect the impact of COVID 19 pandemic:

• a. Measurement of defined benefit obligations

Accrued pension liabilities and resulting pension expenses under defined benefit pension plans are calculated using the Projected Unit Credit Method. Actuarial assumptions comprise the discount rate, rate of employee turnover, future salary increase rate, etc. Changes in economic circumstances and market conditions will affect these assumptions and may have a material impact on the amount of the expense and the liability. Refer to Note 19 for further description of the actuarial assumptions and sensitivity analysis.

• b. Recognition of deferred tax assets

As of December 31, 2023 and 2022, the carrying amounts of deferred tax assets in relation

～ 29 ～

to unused tax losses were $132,535 and $187,799, respectively. As of December 31, 2023 and 2022, no deferred tax assets have been recognized on tax losses of $528,708 and $719,427, respectively, due to the unpredictability of future profit streams. The realizability of deferred tax assets mainly depends on whether sufficient future profit or taxable temporary differences will be available. In cases where the actual future profit generated is less than expected, a material reversal of deferred tax assets may arise, which would be recognized in profit or loss for the period in which such a reversal takes place.

c. Impairment of goodwill from investments in subsidiaries

Determining whether the goodwill included in the investments in subsidiaries is impaired requires an estimation of the value in use of the cash generating units which are expected to benefit from the synergies of the related combination and to which the goodwill has been allocated since the acquisition date. The calculation of the value in use requires management to estimate the future cash flows expected to arise from the cash generating units and a suitable discount rate in order to calculate the present value. Where the actual future cash flows are less than expected, a material impairment loss may arise.

The Company’ s accounting policies include measuring financial and nonfinancial assets and liabilities at fair value through profit or loss.

The Company strives to use market observable inputs when measuring assets and liabilities. Different levels of the fair value hierarchy to be used in determining the fair value of financial instruments are as follows:

• Level 1: quoted prices (unadjusted) in active markets for identifiable assets or liabilities.

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

• Level 3: inputs for the asset or liability that are not based on observable market data.

For any transfer within the fair value hierarchy, the impact of the transfer is recognized on the reporting date. Please refer to the following notes for assumptions used in measuring fair value: Note 26, Financial instruments.

6. Cash and cash equivalents

Cash and cash equivalents
Cash on hand Cash in banks Cash equivalents	December 31, 2023 $ 2,165 377,342 - $ 379,507	December 31, 2022
		$ 1,582 262,766 160,000 $ 424,348

• a. Bank time deposits whose original maturity date exceeds three months are classified as other current financial assets. The deposit accounts of $42,636 and $-, which did not meet the definition of cash and cash equivalents, were classified as other current financial assets for December 31, 2023 and 2022, respectively.

• b. Please refer to Note 26 for the fair value sensitivity analysis and interest rate risk of the financial assets and liabilities.

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7.

Financial assets at fair value through profit or loss

Financial assets designated as at fair value through profit or loss: Non-derivative financial assets Stocks listed on domestic markets	December 31, 2023 $ 839,275	December 31, 2022
		$ 811,095

• a. Please refer to Note 25 for the remeasurement of fair value.

• b. For the years ended December 31, 2023 and 2022, the dividends from financial assets designated as at fair value through profit or loss were $26,458 and $48,667, respectively.

• c. As of December 31, 2023 and 2022, the amount of $2,355 and $1,081 outstanding (recorded as other receiveables) for the dividends from financial assets atfair value through profit or loss had been fully received respectively by the Company as of the audit date.

• d. Please refer to Note 31 for the details of financial assets pledged as collateral.

8. Financial assets at fair value through other comprehensive income

December 31, 2023 Equity investments at fair value through other comprehensive income: Unlisted common shares domestic Company $ 7,500	December 31, 2022
	$ 7,500

• a. Equity investments at fair value through other comprehensive income

The Company designated the investments shown above as equity securities as at fair value through other comprehensive income because these equity securities represent those investments that the Company intends to hold for long-term for strategic purposes. For the years ended December 31, 2023 and 2022, the Company recognized the dividends of $2,382 and $2,808 related to equity instruments measured at fair value through other comprehensive income, respectively.

• b. For credit risk and market risk; please refer to Note 26 and 27.

• c. No financial assets mentioned above were pledged as collateral.

9. Accounts receivable (including related parties)

Accounts receivable	December 31, 2023 $ 20,970	December 31, 2022 $ 33,675

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

The loss allowance provision in warehousing segment was determined as follows:

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Current Current	December 31, 2023
	Gross carrying amount Weighted average loss rate Loss allowance provision
	$ 20,970 0% - December 31, 2022
	Gross carrying amount Weighted average loss rate Loss allowance provision $ 33,675 0% -

• a. As of December 31, 2023 and 2022, there was no allowance for notes and accounts receivable.

• b. Please refer to Note 26 and 27 for the Company’s accounts receivable exposure to credit risk and currency risk.

10. Other receivables and other notes receivable (including related parties)

Other accounts receivable—loans to associates Other accounts receivable—others	December 31, 2023 $ 300,000 12,309 $ 312,309	December 31, 2022
		$ 308,000 10,926 $ 318,926

• a. As of December 31, 2023 and 2022, there were no bills past due but not impared of other receivables.

• b. For credit risk and market risk; please refer to Note 26 and 27.

11.

Inventories

Raw materials and others (including fuel)	December 31, 2023 $ 32,283	December 31, 2022 $ 32,773

• a. As of December 31, 2023 and 2022, raw material and others, recognized as cost of sales amounted $9,768 and $11,159, respectively.

b. No inventories were pledged as collateral on December 31, 2023 and 2022, respectively. 12. Investments accounted for using equity method

The Company’ s financial information for investments accounted for using the equity method at the reporting date was as follows:

Subsidiaries Associates Eastern Home Shopping&Leisure Co., Ltd. Add: credit balance of investments accounted for using equity method transferred to non-current liabilities	December 31, 2023 $ 2,500,739 8,971 2,509,710 1,076,049 $ 3,585,759	December 31, 2022
		$ 2,568,412 16,518
		2,584,930 668,768 $ 3,253,698

a. Subsidiaries

Expect for the following mentioned, please refer to the consolidated financial statement for the years ended December 31, 2023 and 2022.

• (a) On December 31, 2023 and 2022, wherein the Company invested at an amount proportionate to subsidiaries' previous shareholding, credit balance of investments

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accounted for using equity method carrying amounts of $1,076,049 and $668,768, respectively, the credit balance of investments accounted for using equity method has been transferred to non current liabilities.

• (b) The Company approved to liquidate Grand Richness (Hong Kong) on June 8, 2022. The liquidation procedures were finished on January 13, 2023 and the Company lost control over Grand Richness (Hong Kong) since then. The loss on disposal of the investment was amounted to $39,602.

• (c) On December 6, 2022, the board of directors of the subsidiary, ET Pet, resolved a capital injection by cash with an investment amount of $500,000, and the reference date would be on December 26, 2022. The Company participated in the cash capital injection by $416,250, and would obtain shareholding of 59.46%. Therefore, ET Pet became a subsidiary controlled by the Company directly. The registrations were finished on January 17, 2023.

• (d) On October 20, 2023, May 29, 2023 and September 5, 2022, the board of directors of the subsidiary, Eastern Asset, resolved capital injections by cash with an investment amount of $500,000, $500,000 and $400,000, and the reference dates would be on December 15, 2023, June 30, 2023 and October 7, 2022, respectively. The Company participated these capital injections amounting to $275,000, $275,000 and $220,000 which were all in proportion to the shareholding ratio. The registration was completed on January 5, 2024, July 17, 2023 and November 1, 2022, respectively.

• (e) The Company approved to liquidate FESS-Bermuda on March 16, 2023. The liquidation procedures were finished on August 22, 2023 and the Company lost control over FESS-Bermuda since then. The loss on disposal of the investment was amounted to $23,544.

• b. Associates

• Affiliates which are material to the Company consisted of the following:

Affiliate Name	Within the Company Nature of Relationship	Main operating location	Proportion of shareholding and voting rights
			December 31, 2023 December 31, 2022
EHS	Wholesale and retail of various commodities, materials and equipment	Taiwan, Hong Kong and China	6.51% 6.51%

Eastern Home Shopping & Leisure Co., Ltd.

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

affiliates:
Current assets Non-current assets Liabilities Net assets Non-controlling interests, attributable to investee Net assets attributable to investee	December 31, 2023 $ 5,125,260 5,967,040 ( 10,953,761) $ 138,539 $ 785 $ 137,754	December 31, 2022
		$ 4,774,859 6,196,361 ( 10,709,994)
		$ 261,226
		$ 7,584 $ 253,642

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Operating revenue Net income Other comprehensive loss Total comprehensive income Comprehensive income (loss), attributable to non-controlling interests Comprehensive income attributable to investee Share of net assets attributable to the Group of beginning balance Comprehensive income attributable to the Group Dividends received from assiociates Changes in investments accounted for using equity method Share of net assets attributable to the Group of ending balance	For theyears ended December 31	For theyears ended December 31
	2023 $ 20,424,296 ( 105,005) ( 28,351) ( $ 133,356) ( $ 3,136) ( $ 130,220) $ 16,518 ( 8,480) - 933 $ 8,971	2022
		$ 24,656,410
		( 528,777) 141,635
		( $ 387,142)
		( $ 16,903) ( $ 370,239) $ 126,893 ( 24,112) ( 33,188) ( 53,075) $ 16,518

• c. The Company has processed an impairment test for investment using the equity method, please refer to Note 12 and Note17 of the consolidated financial statements for the year ended December 31, 2023.

• d. Please refer to Note 31 for the details of the investments accounted for using equity method pledged as collateral.

13. Property, plant and equipment

The cost, depreciation, and impairment loss of the property, plant and equipment of the Company were as follows:

==> picture [414 x 223] intentionally omitted <==

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

Land Buildings Transportation equipment improvementsLeasehold Construction in progress Other equipment Total
Cost or deemed cost:
Balance on January 1, 2023 $ 180,383 $ 60,886 $ 2,320 $ 563,293 $ 5,722 $ 31,377 $ 843,981
Additions 38,510 - - 60,344 6,385 6,915 112,154
Transfers ( 38,510) - - 1,709 38,510 - 1,709
Disposals / Written-off ( 29,236) ( 113) - ( 35,344) - ( 4,760) ( 69,453)
Balance on December 31, 2023 $ 151,147 $ 60,773 $ 2,320 $ 590,002 $ 50,617 $ 33,532 $ 888,391
Balance on January 1, 2022 $ 151,147 $ 60,798 $ 8,972 $ 423,195 $ - $ 27,538 $ 671,650
Additions 29,236 88 - 90,453 5,722 7,760 133,259
Transfers - - - 61,683 - - 61,683
Disposals / Written-off - - ( 6,652) ( 12,038) - ( 3,921) ( 22,611)
Balance on December 31, 2022 $ 180,383 $ 60,886 $ 2,320 $ 563,293 $ 5,722 $ 31,377 $ 843,981
Depreciation and impairment loss:
Balance on January 1, 2023 $ - $ 28,032 $ 1,343 $ 103,762 $ - $ 10,360 $ 143,497
Depreciation - 1,714 464 62,950 - 7,555 72,683
Disposals / Written-off - ( 113) - ( 35,344) - ( 4,760) ( 40,217)
Balance on December 31, 2023 $ - $ 29,633 $ 1,807 $ 131,368 $ - $ 13,155 $ 175,963
Balance on January 1, 2022 $ - $ 26,312 $ 7,355 $ 59,467 $ - $ 7,779 $ 100,913
Depreciation - 1,720 640 56,333 - 6,502 65,195
Disposals / Written-off - - ( 6,652) ( 12,038) - ( 3,921) ( 22,611)
Balance on December 31, 2022 $ - $ 28,032 $ 1,343 $ 103,762 $ - $ 10,360 $ 143,497
Carrying amounts:
December 31, 2023 $ 151,147 $ 31,140 $ 513 $ 458,634 $ 50,617 $ 20,377 $ 712,428
January 1, 2022 $ 151,147 $ 34,486 $ 1,617 $ 363,728 $ - $ 19,759 $ 570,737
December 31, 2022 $ 180,383 $ 32,854 $ 977 $ 459,531 $ 5,722 $ 21,017 $ 700,484
----- End of picture text -----

• a. The land rights obtained by Eastern Asset and the Company respectively are expected to be used to build the headquarters of the Eastern Media Group and nearby areas, and the interest expenses of loans during the planning and construction period will be capitalized.

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For the years ended December 31, 2023 nad 2022 the interest rates were at 3.13%~3.53% and 2.87%~3.13%, respectively. Details are as follows:

Interest expense on loans	For theyears ended December 31	For theyears ended December 31
	2023 $ 1,715	2022 $ 686

• b. Please refer to Note 31 for the details of the property, plant and equipment pledged as collateral.

14. Right-of-use assets

The cost, depreciation, and impairment loss of the land and equipment, buildings, media exhibition boards and transportation equipment of the Company were as follows:

Right of use asset costs: Balance on January 1, 2023 Additions Balance on December 31, 2023 Balance on January 1, 2022 Additions Write off - lease modification Write off - lease ending Balance on December 31, 2022 Accumulated depreciation Balance on January 1, 2023 Depreciation Balance on December 31, 2023 Balance on January 1, 2022 Depreciation Write off - lease ending Balance on December 31, 2022 Carrying amounts: December 31, 2023 January 1, 2022 December 31, 2022	Land and equipment $ 4,202,045 - $ 4,202,045 $ 4,105,077 97,027 ( 59) - $ 4,202,045 and impairment losses: $ 834,460 205,856 $ 1,040,316	Buildings $ 48,595 209 $ 48,804 $ 44,253 5,572 4,696 ( 5,926) $ 48,595 $ 30,209 11,829 $ 42,038	Transportation equipment $ 2,101 - $ 2,101 $ 1,471 630 - - $ 2,101 $ 992 700 $ 1,692	Total
				$ 4,252,741 209
				$ 4,252,950
				$ 4,150,801 103,229 4,637 ( 5,926) $ 4,252,741 $ 865,661 218,385
				$ 1,084,046
	$ 629,064 205,396 - $ 834,460 $ 3,161,729 $ 3,476,013 $ 3,367,585	$ 25,136 10,999 ( 5,926) $ 30,209 $ 6,766 $ 19,117 $ 18,386	$ 327 665 - $ 992 $ 409 $ 1,144 $ 1,109	$ 654,527 217,060 ( 5,926) $ 865,661 $ 3,168,904
				$ 3,496,274 $ 3,387,080

• a. In May 2022, the Company signed a contract with the North District Office of the Stateowned Property Administration to establish land usage rights. The duration of the land usage rights is 70 years from the date of registration, and the land usage was set up on May 3, 2022. In the duration of the contract, the Company shall pay rent to the North Branch of the State-owned Property Administration of the Ministry of Finance each year at a certain rate of the announced land price. While constructing the areas, the cost would be listed under property, plant and equipment. Please refer to Note 13 for the details.

• b. The land rights obtained by Eastern Asset and the Company respectively are expected to be used to build the headquarters of the Eastern Media Group and nearby areas, and the depreciation expenses of the right-of-use assets and the interest expenses of lease liabilities during the planning and construction period will be capitalized. The interest rates were at 3.25%. Details are as follows:

～ 35 ～

Right-of-use assets depreciation expense Interest expense on lease liabilities	For theyears ended December 31 2023 2022 $ 1,385 $ 924 $ 535 $ 662	For theyears ended December 31 2023 2022 $ 1,385 $ 924 $ 535 $ 662
		2022
		$ 924 $ 662

The above accounts are listed under property, plant and equipment. Please refer to Note 13 for the details

c. Please refer to Note 31 for the details of the right-of-use assets pledged as collateral.

15. Short-term loans

Details, conditions, and terms of short-term loan of the Company were as follows:

Secured bank loans Interest rates Unused credit lines	December 31, 2023	December 31, 2022
	$ 103,000	$ 170,000
	2.03%~2.07% $ 1,420,000	1.78%~1.90% $ 1,203,000

Please refer to Note 31 for the details of the related assets pledged as collateral.

16. Short-term notes and bills

Details of short-term notes and bills of the Company were as follows:

No guarantees to pay commercial promissory notes Less: discount amount Carrying amount Interest rates Unused credit lines	December 31, 2023	December 31, 2022
	$ - -	$ 100,000 ( 59)
	$ -	$ 99,941
	0% $ 400,000	2.14% $ 300,000

17. Long-term loans

Details, conditions, and terms of long-term loans of the Company were as follows:

Secured bank loans Less: Current portion Fees Total Duration years Interest rates Unused credit lines	December 31, 2023 $ 1,395,916 ( 72,371) ( 9,886) $ 1,313,659 115-120 2.55%-3.53% $ 1,140,250	December 31, 2022
		$ 924,667 ( 19,668) ( 5,647)
		$ 899,352
		115-119
		2.43%-3.13% $ 332,000

Please refer to Note 31 for the details of the related assets pledged as collateral.

18. Lease liabilities

Book value of the Company’ s lease liabilities were as follows:

Current Non-current	December 31, 2023 $ 182,074 $ 3,116,912	December 31, 2022
		$ 182,964 $ 3,298,828

～ 36 ～

For the maturity analysis, please refer to Note 26.

For the years ended December 31, 2023 and 2022, newly added lease liabilities amounted to $209 and $103,229 respectively, and the interest rates was 3.25%~3.5%. Lease period ending dates extend from May,2023 to May, 2092. However, for the years ended December 31, 2023 and 2022, the Compangy negotiated modifications to its contracts in consideration of its operating conditions, thereby increasing lease liabilities by nil and $4,637 respectively. The information on modifications of the Company’ s lease contracts, please refer to Note 14 and 25.

Lease amounts recognized as profit or loss were as follows:

Interest on lease liabilities Interest capitalized on lease liabilities Variable lease payments not included in the measurement of lease liabilities Expenses relating to short term leases Expenses relating to leases of low value assets, excluding short term leases of low value assets Covid-19 related rent concessions recognized as other income Lease amounts recognized in the Statements of as follows: Total cash outflow for leases	For theyears ended December 31	For theyears ended December 31
	2023 2022 $ 101,458 $ 106,752 $ 535 $ 662 $ 30,437 $ 33,254 $ 1,147 $ 1,300 $ 690 $ 713 $ - $ - Cash Flows were For theyears ended December 31	2022
		$ 106,752
		$ 662
		$ 33,254
		$ 1,300
		$ 713
		$ -
	2023 $ 317,282	2022 $ 399,877

a. Leases of land and equipment, and buildings

As of December 31, 2023 and 2022, the Company leased land, buildings for its warehousing operations and office spaces and land rights. The leases of warehousing operations typically run for a period of 20 years, office spaces for 3~5 years, and land rights for 70 years. Some leases included an option to renew the lease for an additional period of the same duration after the end of the contract term.

Some leases of office buildings contained extension options exercisable by the Company up to one year before the end of the non-cancellable contract period. These leases are negotiated and monitored by local management, and accordingly, contain a wide range of different terms and conditions. The extension options held are exercisable only by the Company and not by the lessors. In which lease is not reasonably certain to use an optional extended lease term, payments associated with the optional period are not included within lease liabilities.

b. Other leases

The Company leases transportation equipment with lease terms of three years. In some cases, the Company has options to extend lease terms at the end of the contract term.

The Company also leases IT equipment and machinery with contract terms of one to three years. These leases are short-term or leases of low value items. The Company has elected not to recognize right of use assets and lease liabilities for these leases.

～ 37 ～

19. Employee benefits

a. Defined benefit plans

The Company determined the movement in the present value of the defined benefit obligations and fair value of plan assets as follows:

Present value of defined benefit obligations Fair value of plan asset Net defined benefit liabilities	December 31, 2023 $ 134,922 ( 128,597) $ 6,325	December 31, 2022
		$ 131,378 ( 129,579) $ 1,799

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

• (a) Composition of plan assets

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

The Company’ s Bank of Taiwan labor pension reserve account balance amounted to $128,597 as of December 31, 2023. For information on the utilization of the labor pension fund assets, including the asset allocation and yield of the fund, please refer to the website of the Bureau of Labor Funds, Ministry of Labor.

• (b) Movements in present value of the defined benefit obligations

The movement in present value of the defined benefit obligations for the years ended December 31, 2023 and 2022 were as follows:

		For theyears ended December 31	For theyears ended December 31	For theyears ended December 31
		2023		2022
Defined benefit obligations on January 1		$ 131,378		$ 139,545
Current service cost and interest		2,234		2,275
Remeasurements of the net defined benefit
liability:
—Actuarial (losses) gains due to experience adjustments		7,980	(	3,948)
Benefits paid by the plan	(	6,670)	(	6,494)
Others		-		-
Defined benefit obligations on December 31		$ 134,922		$ 131,378

～ 38 ～

(c) Movements of defined benefit plan assets

The movements in the present value of the defined benefit plan assets for the years ended December 31, 2023 and 2022 were as follows:

Fair value of plan assets on January 1 Interest revenue Remeasurements of the net defined liability: —Return on plan assets (excluding interest for the period) Contributions made from employer Benefits paid by the plan Refund Fair value of plan assets on December 31	For theyears ended December 31	For theyears ended December 31
	2023 $ 129,579 1,412 781 3,495 ( 6,670) - $ 128,597	2022
		$ 122,264 783 9,517 3,509 ( 6,494) - $ 129,579

(d) Expenses recognized in profit and loss

The expenses recognized in profit or loss for the years ended December 31, 2023 and 2022 were as follows:

Service cost of the period Net interest on net defined benefit liability Operating cost General and administrative expense	For theyears ended December 31	For theyears ended December 31
	2023 $ 802 20 $ 822 $ 611 211 $ 822	2022
		$ 1,382 110
		$ 1,492
		$ 1,095 397 $ 1,492

(e) Actuarial valuations

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

Discount rate Future salary increase	December 31, 2023 1.05% 1%	December 31, 2022
		1.09% 1%

The expected allocation payment to be made by the Company to the defined benefit plans for the one-year period after the reporting date is $2,616.

The weighted-average lifetime of the defined benefits plans is 1 year.

(f) Sensitivity analysis

When calculating the present value of the defined benefit obligations, the Company uses judgments and estimations to determine the actuarial assumptions, including employee turnover rates and future salary changes, as of the financial statement date. Any changes in the actuarial assumptions may significantly impact the amount of the defined benefit obligations.

As of December 31, 2023 and 2022, the changes in the principal actuarial assumptions will impact on the present value of defined benefit obligation as follows:

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December 31, 2023 Discount of 0.50% Future salary change of 0.50% December 31, 2022 Discount of 0.50% Future salary change of 0.50%	Impact on present value of defined benefit obligations
	Increase Decrease
	( $ 185) $ 1,160 $ 1,137 ( $ 186) Impact on present value of defined benefit obligations
	Increase Decrease
	( $ 1,112) $ 1,679 $ 1,658 ( $ 1,118)

The sensitivity analysis assumed all other variables remain constant during the measurement. This may not be representative of the actual change in defined benefit obligation as some of the variable may be correlated in the actual situation. The model used in the sensitivity analysis is the same as the defined benefit obligation liability.

The analysis is performed on the same basis for prior year.

• b. Defined contribution plans

The Company contributed 6% of the employees’ monthly wages to the Labor Pension personal accounts at the Bureau of Labor Insurance in accordance with the provisions of the Labor Pension Act. The Company contributed a fixed amount to the Bureau of Labor Insurance without additional legal or constructive obligation.

For the years ended December 31, 2023 and 2022, the Company contributed $10,452 and $10,076, respectively, under the pension plan to the Bureau of Labor Insurance.

20. Income taxes

a. The components of income tax for the years ended December 31, 2023 and 2022 were as follows:

Current income tax expense Current period Undistributed earnings additional tax Adjustment for prior periods Deferred tax expense Origination and reversal of emporary differences Income tax expense	For theyears ended December 31	For theyears ended December 31
	2023 $ 3 - ( 1,679) ( 1,676) 55,264 $ 53,588	2022
		$ - 1,679 -
		1,679
		243,310 $ 244,989

～ 40 ～

The reconciliation of income tax and loss before tax was as follows:

Profit loss tax Income tax on pre tax financial income calculated at the domestic rates applicable to profits in the country concerned Investment gain or loss from domestic investment accounted for using equity method Other adjustments in accordance with tax laws Prior years’ adjustment Undistributed earnings additional tax Deferred income taxes Total	For theyears ended December 31	For theyears ended December 31
	2023 ( $ 219,177) ( 43,835) 110,907 ( 67,069) ( 1,679) - 55,264 $ 53,588	2022
		( $ 1,410,113)
		( 282,023) 336,339 ( 54,316) - 1,679 243,310 $ 244,989

b. Deferred tax assets and liabilities

(a) Unrecognized deferred tax assets

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

Tax effect of deductible temporary differences The carryforward of unused tax losses	December 31, 2023 $ 233,196 528,708 $ 761,904	December 31, 2022
		$ 336,858 719,427 $ 1,056,285

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

As of December 31, 2023, the information of the Company’ s unutilized business unused tax losses for which no deferred tax assets were recognized are as follows:

Year of Occurrence 103 104 112	Remaining Creditable Amount $ 1,313,720 1,092,827 236,993 $ 2,643,540	Year of Expiration
		113 114 122

(b) Recognized deferred tax assets and liabilities

Changes in the amount of deferred tax assets and liabilities for the years ended December 31, 2023 and 2022, were as follows:

Balance, January 1 Recognized in profit or loss Balance, December 31	For theyears ended December 31	For theyears ended December 31
	2023 $ 187,799 ( $ 55,264) $ 132,535	2022
		$ 431,634 ( $ 243,835) $ 187,799

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Deferred Tax Liabilities: Balance, January 1 Recognized in profit or loss Balance, December 31	For theyears ended December 31	For theyears ended December 31
	2023 $ - - $ -	2022
		$ 525 ( 525) $ -

• c. The Company’s tax returns for the years through 2021 were examined and approved by the tax authority.

21. Capital and other equity

• a. Ordinary shares

As of December 31, 2023 and 2022, the total value of nominal ordinary shares amounted to $15,000,000 with a par value of $10 (dollars) per share. The total number of shares was 300,243 and 476,055 thousand shares, respectively.

For increasing the return on equity, on March 23, 2022, a resolution was passed in the Boardmeeting for the capital reduction with $1(NT$) per share, amounting to $528,950, cancelling 52,895 ordinary thousand shares, and would be passed in the shareholders’ meeting on June 13, 2022. The capital reduction was approved by the Taiwan Stock Exchange on June 30, 2022. The Company’ s board of directs approved the reference date for capital reduction would be on July 5, 2022. The registration procedures were finished on July 14, 2022. However, the Company resolved to make a capital reduction by $1,758,123 with the ratio 36.93105921% on March 14, 2023. The resolution was passed in the shareholders’ meeting on May 30, 2023 and approved by the Taiwan Stock Exchange on June 26, 2023. The Company’ s board of directs approved the reference date for capital reduction would be on July 11, 2023. The registration procedures were finished on July 18, 2023. For further information, please refer to the Market Observation Post System.

• b. Capital surplus

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

Difference between consideration and carrying-amount of subsidiaries acquired or disposed	December 31, 2023	December 31, 2022
	15,992 $ 15,992	15,992 $ 15,992

According to the R.O.C. Company Act, capital surplus can only be used to offset a deficit, and only the realized capital surplus can be used to increase the common stock or be distributed as cash dividends. The aforementioned realized capital surplus includes capital surplus resulting from premium on issuance of capital stock and earnings from donated assets received. According to the Regulations Governing the Offering and Issuance of Securities by Securities Issuers, capital increases by transferring capital surplus in excess of par value should not exceed 10% of the total common stock outstanding.

• c. Retained earnings

(a) Legal reserve

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

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• (b) Special reserve

By choosing to apply exemptions granted under IFRS 1 First time Adoption of International Financial Reporting Standards during the Company’s first-time adoption of the International Financial Reporting Standards (IFRSs) endorsed by the Financial Supervisory Commission, unrealized revaluation gains recognized under shareholders’ equity and cumulative translation adjustments (gains) shall be reclassified as investment property at the adoption date. In accordance with permit as issued by the Financial Supervisory Commission, an increase in retained earnings due to the firsttime adoption of IFRSs shall be reclassified as a special earnings reserve during earnings distribution, and when the relevant asset is used, disposed of, or reclassified, this special earnings reserve shall be reversed as distributable earnings proportionately.

A portion of current period earnings and undistributed prior period earnings shall be reclassified as a special earnings reserve during earnings distribution. The amount to be reclassified should be equal to the difference between the total net current period reduction of special earnings reserve resulting from the first-time adoption of IFRSs and the carrying amount of other shareholders’ equity as stated above. Similarly, a portion of undistributed prior period earnings shall be reclassified as a special earnings reserve (which does not qualify for earnings distribution) to account for cumulative changes in other shareholders’ equity pertaining to prior periods due to the first-time adoption of IFRSs. Amounts of subsequent reversals pertaining to the net reduction of other shareholders’ equity shall qualify for additional distributions.

• (c) Earnings distribution

In respect to the Company’s dividend policy, in order to cope with the Company’s diversified operations and the capital expenditure required for future expansion of the scope of operations and long-term financial planning, it can be based on the needs of the business climate and industry changes and take into account the interests of shareholders, making appropriate assignments or reservations. Any profit in the annual financial statements shall be paid to all taxes and dues in accordance with the laws and make up for any accumulated deficits, and then set aside 10% of said profits as legal reserve, provided such legal reserve amounts to the total paid-in capital, this provision shall not apply. As well as special reserve appropriation and reversal in accondance with the laws or regulations of the competent authority. If there is still a profit, and the undistributed profit at the beginning of the same period (including adjustment of the amount of undistributed profit), the Board of Directors shall prepare a profit distribution proposal and submit it to the General Meeting of Shareholders for resolution: 1. Shareholders’ dividends are allocated with distributable earnings, which shall not be less than 15% of the current year’s distributable earnings and; 2. the cash dividend shall not be less than 10% of the current year; 3. however, if the balance of the distributable earnings of the current year minus the beginning undistributed earnings is less than NT$0.1 per share, the Company may exempt from this provision. Distribution of the earnings in the preceeding paragraph which is paid in cash is authorized after a resolution has been adopted by a majority vote at a meeting of the Board of Directors attended by two-thirds of the total number of directors, and in addition thereto a report of such distribution shall be submitted to the shareholders’ meeting; by means of issuing new shares, a resolution shall be submitted to the shareholders’ meeting in accordance with the regulations.

The appropriation of 2021 earnings concerning cash dividends had been approved by the Company’s board of directors on March 23, 2022. The rest appropriation of 2021 earnings was resolved by the shareholder’s meeting on June 13, 2022. The appropriation was as follows:

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Legal reserve Special reserve Cash dividends	Amount 2021 $ 74,607 50,654 528,950	Dividendper share(NT$)
		2021
		$ - - 1.00

On March 14, 2023, the Company’ s Board of Directors resolved to make a capital reduction, and did not distribute dividends for there was net loss in 2022. The capital reduction for 2022 was passed in the Boardmeeting on May 30, 2023.

On February 26, 2024, the Company’ s Board of Directors resolved to make a capital reduction, and would not distribute dividends this year for there was net loss in 2023. The capital reduction for 2023 was passed in the Boardmeeting on May 27, 2024 (expected). For further information, please refer to the Market Observation Post System.

• (d) In 2022, as the Company did not increase the capital of subsidiaries in proportion to the shareholding ratio, making differences between consideration and carrying-amount of subsidiaries. This incidient increased (decreased) capital surplus by $388 and $(639), respectively.

• (e) In 2022, the Company’s subsidiary acquired shares from non-controlling interests, leading changes in shareholdings at the amount of $5,664 reducing retained earnings directly. Meanwhile, due to the changes in investments accounted for using equity method, the Group recognized a reduction in retained earnings of $207,501. Please refer to Note 12 in the consolidated financial statement for the years ended December 31, 2023.

• (f) In 2023, due to the changes in investments accounted for using equity method, the Company recognized a reduction in retained earnings of $3,649.

• d. Other equity (net of tax)

Other equity (net of tax)
Foreign currency translation differences for foreign operations Balance on January 1,2023 ( $ 176,758) Exchange differences on foreign operation 50,627 Change in other comprehensive income of associates accounted for using equity method ( 3,896) Balance on December 31,2023 ( $ 130,027) Foreign currency translation differences for foreign operations Balance on January 1,2022 ( $ 342,910) Exchange differences on foreign operation 136,147 Change in other comprehensive income of associates accounted for using equity method 30,005 Balance on December 31,2022 ( $ 176,758)	Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income $ 1,290 - ( 3,858) ( $ 2,568) Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income ( $ 3,699) - 4,989 $ 1,290	Revaluation surplus $ 31,115 - - $ 31,115 Revaluation surplus $ - - 31,115 $ 31,115	Total
			( $ 144,353) 50,627 ( 7,754)
			( $ 101,480)
			Total
			( $ 346,609) 136,147 66,109 ( $ 144,353)

～ 44 ～

22. Losses per share

The basic losses per share were calculated as follows:

Basic (loss) earnings per share Profit (loss) attributable to ordinary shareholders of the Company The weighted average number of ordinary shares outstanding (thousand shares)	For theyears ended December 31	For theyears ended December 31
	2023 ( $ 272,765) 300,243 ( $ 0.91)	2022
		( $ 1,655,102)
		327,053 ( $ 5.06

Note: On May 30, 2023, the company resolved at the shareholders' meeting to reduce capital to offset losses, with the reference date being on July 11, 2023. The impact of the reduction of capital to offset losses has been retrospectively adjusted when calculating loss per share.

Since there were net losses in both 2023 and 2022, there is no need to disclose diluted earnings per share.

23. Revenue from contracts with customers

• a. Details of revenue

Main services: Loading and storage revenue	For theyears ended December 31
	$ 1,436,570 $ 1,479,159

• b. Contract balances

Accounts receivable Contract liability others	December 31, 2023 $ 20,970 $ -	December 31, 2022 $ 33,675 $ 2,145	January 1, 2022 $ 16,065 $ -

Please refer to Note 9 for the details of accounts receivable and its impairment. For the years ended 2023 and 2022, there were $2,145 and $- transferred into revenue from the beginning balance of contract liabilities, respectively.

24. Remuneration of employees

If the Company makes a profit during the year (referring to profit before tax minus the profit before the distribution of employee compensation), then after deducting any accumulated loss, 3.5% of the balance shall be allocated as employee compensation and the amount allocated shall be used as the current year's expense.

Since there were net losses in 2023 and 2022, no remuneration should be calculated.

The amounts of employees’ and directors’ remuneration, as stated in the parent company only financial statements, were identical to the actual distributions amounts for the years 2022 and 2021. For further information, please refer to the Market Observation Post System.

～ 45 ～

25. Non-operating income and expenses

• a. Interest income

The details of interest income of the Company were as follows:

Interest income from bank deposits Interest income from financial assets measured at amortized cost Other interest income	For theyears ended December 31	For theyears ended December 31
	2023 $ 4,513 1,059 17,514 $ 23,086	2022
		$ 1,810 221 12,790 $ 14,821

b. Other income

The details of other revenue of the Company were as follows:

Rental income Dividend income Other revenue	For theyears ended December 31	For theyears ended December 31
	2023 $ 6,019 28,840 5,530 $ 40,389	2022
		$ 26,910 51,475 14,509 $ 92,894

c. Other gains and losses

The details of other gains and losses were as follows:

Foreign exchange gain (loss) Net gain (loss) on evaluation of financial assets at fair value through profit or loss Loss on disposal of investments Other loss	For theyears ended December 31	For theyears ended December 31
	2023 1,373 13,620 ( 63,146) ( 169) ( $ 48,322)	2022
		( 17,742) ( 198,332) - ( 38) ( $ 216,112)

• d. Finance costs

The Company’ s finance costs were as follows:

Interest expenses – lease liabilities Interest expenses – bank loans Finance expense	For theyears ended December 31	For theyears ended December 31
	2023 $ 101,458 38,228 13,134 $ 152,820	2022
		$ 106,752 14,087 5,746 $ 126,585

26. Financial instruments

• a. Credit risk

(a) Credit risk exposure

As of December 31, 2023 and 2022, the maxinum credit exposure for the Company originates from possible non-fulfillment of obligations by counterparties and from financial losses arising from financial guarantees provided by the Company, mainly from:

～ 46 ～

• ‧ The carrying amount of financial assets recognized in the consolidated balance sheet; and

• ‧ The amount of liabilities as a result from the Company providing financial guarantees to its customers was $2,681,812 and $2,370,797.

• (b) Concentration of credit risk

• For the years ended December 31, 2023 and 2022, the Company’s revenue come from sales to a single customer were 13.30% and 11.79%, respectively.

For credit risk exposure of notes and accounts receivable, please refer to Note 9.

All of these financial assets are considered to have low risk, and thus, the impairment provision recognized during the period was limited to 12 months expected losses. Regarding how the financial instruments are considered to have low credit risk, please refer to Note 4f.

As of December 31, 2023 and 2022, there was no allowance for notes and accounts receivable.

• b. Liquidity risk

The following are the contractual maturities of financial liabilities of the Company, including estimated interest payments and excluding the impact of netting agreements.

==> picture [394 x 212] intentionally omitted <==

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

Carrying Contractual cash More than 5
amount flows Within 1 year 1-3 years 3-5 years years
December 31, 2023
Non derivative
financial liabilities
Loans $ 1,489,030 $ 1,693,420 $ 220,357 $ 359,219 $ 319,016 $ 794,828
Payables (current 262,476 262,476 262,476 - - -
and non-current)
Lease liabilities
(current and non- 3,298,986 4,119,713 278,542 544,305 544,153 2,752,713
current)
Guarantee deposits 360 360 - 360 - -
received
$ 5,050,852 $ 6,075,969 $ 761,375 $ 903,884 $ 863,169 $ 3,547,541
December 31, 2022
Non derivative
financial liabilities
Loans $ 1,089,020 $ 1,203,386 $ 212,756 $ 181,807 $ 192,966 $ 615,857
Short term notes 99,941 100,000 100,000 - - -
and bills payable
Payables (current 440,590 440,590 440,590 - - -
and non-current)
Lease liabilities
(current and non- 3,481,792 4,404,505 284,954 550,804 543,957 3,024,790
current)
Guarantee deposits 360 360 - 360 - -
received
$ 5,111,703 $ 6,148,841 $ 1,038,300 $ 732,971 $ 736,923 $ 3,640,647
----- End of picture text -----

The Company does not expect that the cash flows included in the maturity analysis could occur significantly earlier or in significantly different amounts.

• c. Exchange rate risk

• (a) Exposure to exchange rate risk

The Company’ s financial assets and liabilities exposed to exchange rate risk were as follows:

～ 47 ～

==> picture [369 x 23] intentionally omitted <==

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

December 31, 2023 December 31, 2022
Foreign Exchange Rate TWD Foreign Exchange Rate TWD
Currency Currency
----- End of picture text -----

Financial assets
Moneytary items
USD:TWD	$	1,185	30.705	$	36,397	$	46	30.712	$	1,399
Non-moneytary items
USD:TWD	$	38,859	30.705	$	1,193,175	$	43,214	30.712	$	1,327,108
HKD:TWD		45,511	3.929		178,814		14,835	3.938		58,419
Financial liabilities
Moneytary items
USD:TWD	$	-	30.705	$	-	$	5,757	30.712	$	176,807

(b) Sensitivity analysis

The Company’ s exposure to exchange rate risk arises from the translation of the foreign currency exchange gains and losses on cash and cash equivalents, accounts receivable, other receivables, loans, accounts payable, and other payables that are denominated in foreign currency. If the TWD, when compared with each major foreign currency, had appreciated or depreciated 1% (with other factors remaining constant on the reporting date), net loss before tax would have respectively increased or decreased by $364 and $1,754 for the years ended December 31, 2023 and 2022, respectively. The analysis is performed on the same basis for both periods.

As the Company deals in diverse foreign currencies, gains or losses on foreign exchange are summarized as a single amount. For the the years ended December 31, 2023 and 2022, foreign currency exchange gains (losses) (including realized and unrealized) amounted $1,373 and $(17,742), respectively.

d. Interest rate analysis

The interest risk exposure of the Company’ s financial assets and liabilities is described in the note on market risk management.

The following sensitivity analysis is based on the exposure to interest rate risk of the derivative and non-derivative financial instruments on the reporting date. For variable rate instruments, the sensitivity analysis assumes the variable rate liabilities on the reporting date have been outstanding for the whole year. The Company’ s internal management reported the increases/decreases in interest rates, and changes in interest rates of one basis point are considered by management to be reasonably possible.

If the interest rate had increased or decreased by 1% and assuming all other variable factors remained constant, the Company’ s net loss after tax would have respectively increased or decreased by $9,902 and $6,577 for the the years ended December 31, 2023 and 2022.

e. Other market price risk

Sensitivity analyses for the changes in the securities price at the reporting date were performed using the same basis for the profit and loss as illustrated below:

Price of securities at reporting date Increasing 3% Decreasing 3%	For the years ended December 31 2023 Other comprehensive income after tax Net income $ 225 $ 25,178 ( 225) ( 25,178)	For the years ended December 31
		2022
	Other comprehensive income after tax	Other comprehensive income after tax Net income
	$ 225 ( 225)	$ 255 $ 24,333 ( 255) ( 24,333)

f. Fair value of financial instruments

(a) Fair value hierarchy

The carrying amount and fair value of the Company’ s financial assets and liabilities, including the information on fair value hierarchy were as follows;

～ 48 ～

however, except as described in the following paragraphs, for financial instruments not measured at fair value whose carrying amount is reasonably close to the fair value, and for equity investments that has no quoted prices in the active markets and whose fair value cannot be reliably measured, disclosure of fair value information is not required:

==> picture [379 x 24] intentionally omitted <==

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

Fair value
December 31, 2023 Book Value Level 1 Level 2 Level 3 Total
Financial assets at fair
----- End of picture text -----

Financial assets at fair
value through profit or
loss
Non-derivative
financial assets
mandatorily measured	$	839,275	$	839,275	$	-	$	-	$	839,275
at fair value through
profit or loss
Financial assets at fair
value through other		7,500		-		-		7,500		7,500
comprehensive income
Financial assets at fair
value through profit or
loss
Cash and cash equivalents		379,507
Notes and accounts
receivable (including		20,970
related parties)
Other receivables
(including related		312,309
parties)
Other current financial assets		42,772
Refundable deposits		117,657
Other non-current financial assets		4,554
Financial liabilities
measured at amortized
cost
Short-term loans		103,000
Short term notes and		-
bills payable
Other payables
(including related		262,476
parties)
Long-term loans
(including current portion of long-term		1,386,030
loans)
Lease liabilities
(current and non-		3,298,986
current)
Guarantee deposits received		360

～ 49 ～

==> picture [379 x 24] intentionally omitted <==

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

Fair value
December 31, 2022 Book Value Level 1 Level 2 Level 3 Total
Financial assets at fair
----- End of picture text -----

Financial assets at fair
value through profit or
loss
Non-derivative
financial assets
mandatorily measured	$	811,095	$	811,095	$	-	$	-	$	811,095
at fair value through
profit or loss
Financial assets at fair
value through other		7,500		-		-		7,500		7,500
comprehensive income
Financial assets at fair
value through profit or
loss
Cash and cash equivalents		424,348
Notes and accounts
receivable (including		33,675
related parties)
Other receivables
(including related		318,926
parties)
Other current financial assets		94
Refundable deposits		158,621
Other non-current financial assets		4,000
Financial liabilities
measured at amortized
cost
Short-term loans		170,000
Short term notes and bills payable		99,941
Notes and accounts
payable (including		440,590
related parties)
Long-term loans
(including current portion of long-term		919,020
loans)
Lease liabilities
(current and non-		3,481,792
current)
Guarantee deposits received		360

• (b) Valuation techniques for financial instruments not measured at fair value The Company’ s valuation techniques and assumptions used for financial instruments not measured at fair value are as follows:

• (b-1) Financial assets measured at amortized cost and financial liabilities measured at amortized cost

If the quoted prices in active markets are available, the market price is established as the fair value. However, if quoted prices in active markets are not available, the estimated valuation or prices used by competitors are adopted. If there is quoted price generated by transactions, the recent transaction price and quoted price data is used as the basis for fair value measurement. However, if no quoted prices are available, estimates shall be used. The estimates and assumptions used in the evaluation method shall be the discounted value of cash flows to estimate the fair value.

• (c) Valuation techniques for financial instruments measured at fair value

• (c-1) Non-derivative financial instruments

If there is a quoted market price in an active market for a financial instrument, the fair value is based on the quoted market price in an active market. The fair value of listed (over-the-counter) equity instruments and debt instruments with quoted prices in active markets are based on quoted market prices on major exchanges and over-the-counter (OTC) central government bond marketplaces, which are judged to be popular securities.

～ 50 ～

A financial instrument is publicly quoted in an active market if quoted prices are readily and consistently available from exchanges, brokers, underwriters, industry associations, pricing services authorities, or regulatory authorities, and if those prices represent prices that are representative of actual and regularly occurring fair market activity. If the above conditions are not met, the market is considered inactive. In general, large bid-ask spreads, significant increases in bid-ask spreads, or low trading volume are indicators of an inactive market.

The fair values of the Company’ s financial assets and liabilities, such as shares, funds and bonds of listed companies, with standard terms and conditions and traded in active markets, are determined by reference to quoted market prices, respectively.

Except for the above-mentioned financial instruments for which there is an active market, the fair values of other financial instruments are based on valuation techniques or quoted prices with reference to counterparties.

• (c-2) Derivative financial instruments

  • Derivative financial instruments are valued based on widely accepted valuation models, such as discounted and option pricing models. Structured interest rate derivative financial instruments are valued using an appropriate option pricing model (e.g., Black-Scholes model) or other valuation techniques, such as Monte Carlo simulation.

• (d) Transfers between Level 1 and Level 2

There was no transfer between Level 1 and Level 2 for the years ended December 31, 2023 and 2022.

• (e) Reconciliation of Level 3 fair values

There was no change in fair value through other comprehensive income recognized for the years ended December 31, 2023 and 2022.

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

The Company’ s financial instruments that use Level 3 inputs to measure fair value are “Financial assets at fair value through other comprehensive income.”

Quantified information of significant unobservable inputs was as follows:

～ 51 ～

Item Financial assets at fair value through other comprehensive income equity investments without an active market Financial assets at fair value through other comprehensive income equity investments without an active market	Valuation technique Market comparable companies Net Asset Value Method	Significant unobservable inputs •Price to book ratio multiple (1.58 and 1.29 as of December 31, 2023 and2022, respectively) •Discount for lack of marketability (20%) •Net Asset Value	Interrelationship between significant unobservable inputs and fair value measurement
			•The higher the multiple, the higher the fair value •The higher the discount, the lower the fair value •Not applicable

• (g) Fair value measurements in Level 3 – sensitivity analysis of reasonably possible alternative assumptions

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

December 31, 2023 Financial assets at fair value through other comprehensive income Equity investments without an active market Equity investments without an active market December 31, 2022 Financial assets at fair value through other comprehensive income Equity investments without an active market Equity investments without an active market	Inputs Price to book ratio multiple Discount for lack of marketability Inputs Price to book ratio multiple Discount for lack of marketability	Rate increasing or decreasing 1% 1% Rate increasing or decreasing 1% 1%	Other comprehensive income	Other comprehensive income
			Favourable Unfavourable $ 161 ( $ 161) 161 ( 161) Other comprehensive income	Unfavourable
			Favourable $ 124 124	Unfavourable
				( $ 124) ( 124)

The favorable and unfavorable effects represent the changes in fair value, and fair value is based on a variety of unobservable inputs calculated using a valuation technique. The analysis above only reflects the effects of changes in a single input, and it does not include the interrelationships with another input.

～ 52 ～

27. Financial risk management

a. Overview

The Company is exposed to the following risks due to usage of financial instruments: (a) Credit risk

• (b) Liquidity risk

• (c) Market risk

This note describes the Company’ s information concerning risk exposure and the Company’ s targets, policies and procedures to measure and manage the risks. For more quantitative information about the financial instruments, please refer to related notes to the financial statements.

b. Risk management framework

The Board of Directors has overall responsibility for the establishment and oversight of the risk management framework. The Board has deputized the management of core business departments to develop and monitor the Company’ s risk management policies. Management reports regularly to the Board of Directors on its activities.

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

c. Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty of a financial instrument fails to meet its contractual obligations, which arises principally from the Company’ s receivables from customers and financial instruments.

• (a) Accounts receivable and other receivables

The exposure of the credit risk depends on each customer of the sales of loading storage and lease. The Company assesses the customers' credit risk based on their basic information, which comprises of the default risk in their industry and country. The Company continuously monitors the exposure to credit risk and counterparty credit ratings, the Company does not require any collateral for trade and other receivables.

The Risk Management Committee has established a credit policy under which each new customer is analyzed individually for creditworthiness before the Company’s standard payment and delivery terms and conditions are offered. The Company’s review includes external ratings, when available, and in some cases, bank references. Purchase limits are established for each customer and represent the maximum open amount with requiring approval from the Risk Management Committee; these limits are reviewed periodically. The Company would not trade with clients who cannot meet the basic credit rating requirement through regular review.

The Company monitored customer credit risk, customers are grouped according to their credit characteristics. Trade and other receivables relate mainly to the Company’s wholesale customers. Customers that are graded as “high risk” are placed on a restricted customer list and monitored by the Risk Management Committee, and future sales are made on a prepayment basis.

The Company has set up an allowance for impairment to reflect the estimate of

～ 53 ～

incurred losses with respect to trade receivables. The collectible status of the allowance for doubtful accounts is divided into five stages: normal, noticeable, recoverable, recoverable with difficulty, and uncollectible. The Company recognizes the balance of the accounts receivable as impairment loss.

(b) Investment

The credit risk exposure of the bank deposits, fixed income investments, and other financial instruments is measured and monitored by the General Manager’s office. The Company only deals with financial institutions, corporations and organizations with a credit rating of investment grade or higher; therefore, there are no significant doubts regarding default on the above financial instruments, and as a result, there is no significant credit risk.

(c) Guarantee

The Company’s policy is to provide financial guarantees only to subsidiaries. As of December 31, 2023 and 2022, no other guarantees were outstanding.

d. Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is to ensure, as far as possible, that it always has sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation.

As of December 31, 2023 and 2022, the Company had unused bank credit lines for short term borrowings amounting to $2,960,250 and $1,835,000, respectively. According to the Company’s evaluation, the working funds of the Company are sufficient to meet its entire contractual obligations and non hedging forward exchange contracts; therefore, management does not expect any significant issue regarding liquidity risk. The Company revised the plan for real estate and investments, which is expected to improve liquidity risk. The Company intends to strenghten the activation and utilization plan of real estate and investment, which is expected to be sufficient to cope with liquidity risk.

e. Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates, and equity prices, will affect the Company’ s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.

(a) Currency risk

The Company is exposed to currency risk on sales, purchases and borrowings that are denominated in a currency other than the respective functional currencies of the Company’s entities, primarily the New Taiwan Dollar (TWD). The currencies used in these transactions are the TWD, EUR, and USD.

In respect of other monetary assets and liabilities denominated in foreign currencies, the Company ensures that its net exposure is kept to an acceptable level by buying or selling foreign currencies at spot rates when necessary to address short term imbalances.

(b) Interest rate risk

The Company’s interest rate risk is managed by maintaining an appropriate combination of fixed and floating interest rates. The Company periodically evaluates the hedging activities and makes the interest rate and risk preference consistent, so

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that the hedging strategies are most cost effective.

(c) Other market price risk

• The Company is exposed to equity price risk due to the investments in equity securities. This is a strategic investment and is not held for trading. The Company does not actively trade in these investments since the management of the Company monitors and manages the equity investments by holding different investment portfolios. The Company’s management will adjust the investment portfolios of stocks and bonds based on the market price. The significant components of the investment portfolios are individually managed.

28. Capital management

The Company’s objectives for managing capital to safeguard the capacity to continue to operate, to continue to provide a return on shareholders, to maintain the interest of other related parties, and to maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Company may adjust the dividend payment to the shareholders, reduce the capital for redistribution to shareholders, issue new shares, or sell assets to settle any liabilities.

The Company and other entities in the same industry use the debt-to-equity ratio to manage capital. This ratio is the total net debt divided by the total capital. The net debt from the balance sheet is derived from the total liabilities less cash and cash equivalents. The total capital and equity include share capital, capital surplus, retained earnings, and other equity plus net debt.

As at December 31, 2023, the Company’s capital management strategy is consistent with the prior year as at December 31, 2022, ensure financing at a reasonable cost. The Company’s debt-to-equity ratios at the balance sheet dates were as follows:

Total liabilities Less: cash and cash equivalents Net debt Total Equity Total capital Net Debt-to-equity ratio	December 31, 2023 $ 6,146,589 ( 379,507) 5,767,082 3,301,934 $ 9,069,016 63.59%	December 31, 2022
		$ 5,798,381 ( 424,348)
		5,374,033 3,534,055
		$ 8,908,088 60.33%

As of December 31, 2023, the increase in the debt-to-equity ratio was due to the increase in loans.

29. Investing and financing activities not affecting current cash flow

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

Acquisition of property, plant and equipment Add:Other payables January 1 Less: Interest and depreciation capitalization Less: Other payables December 31 Cash paid in this period	For theyears ended December 31	For theyears ended December 31
	2023 $ 112,154 24,984 ( 3,635) ( 10,504) $ 122,999	2022
		$ 133,259 19,871 ( 2,272) ( 24,984) $ 125,874

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Acquisition of intangible assets Add: Other payables January 1 Less: Other payables December31 Cash paid in this period	For theyears ended December 31 2023 2022 $ 2,267 $ 2,296 151 148 ( 189) ( 151) $ 2,229 $ 2,293	For theyears ended December 31 2023 2022 $ 2,267 $ 2,296 151 148 ( 189) ( 151) $ 2,229 $ 2,293
		2022
		$ 2,296 148 ( 151) $ 2,293

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

Short term notes and bills payable Long-term loans Total Short term notes and bills payable Long-term loans Total	January 1, 2023 $ 99,941 919,020 $ 1,018,961	Cash flows ( $ 100,000) 471,250 $ 371,250		Non-cash changes
			Discount $ 59 - $ 59	Amortization of financing use commitment fees $ - ( 4,240) ( $ 4,240)	December 31, 2023
					$ - 1,386,030
					$ 1,386,030
	January 1, 2022 $ - 96,241 $ 96,241	Cash flows $ 100,000 828,000 $ 928,000		Non-cash changes
			Discount ( $ 59) - ( $ 59)	Amortization of financing use commitment fees $ - ( 5,221) ( $ 5,221)	December 31, 2022
					$ 99,941 919,020 $ 1,018,961

30. Related party transactions

• a. Names and relationship with related parties

The followings are entities that have had transactions with related party during the period covered in the consolidated financial statements:

Name of related party

Far Eastern Silo & Shipping (Panama) S.A (FESS-Panama)

Far Eastern Silo & Shipping International (Bermuda) Ltd. (FESS-Bermuda)

Grand Scene Media Corporation (GSMC-Cayman)

Eastern Media Communication (Hong Kong) Ltd. (Eastern Media Communication (Hong Kong))

RICHNESS TRADING (SHANGHAI) CO., LTD. (RICHNESS TRADING (SHANGHAI))

GRAND SCENE TRADING (HOND KONG) LIMITED (GRAND SCENE TRADING (HONG KONG))

Nanjing Yun Fu Trading Ltd. (Nanjing Yun Fu)

Grand Richness Trading (Hong Kong) Co. (Grand Richness (Hong Kong))

Far Eastern Investment Co., Ltd. (EIC)

Tung Kai Lease Finance Co., Ltd. (TKLF)

Eastern International Lease Finance Co., Ltd. (EILF)

ET New Media (ETtoday) Holdings Co., Ltd. (ET New Media) EHR Hotels & Resorts Group Yilan (EHR) Eastern Asset Co., Ltd. (Eastern Asset)

Relationship with the Company

The Company’s subsidiary The Company’s subsidiary (Note 9)

The Company’s subsidiary The Company’s subsidiary

The Company’s subsidiary (Note 8)

The Company’s subsidiary

The Company’s subsidiary The Company’s subsidiary (Note 3)

The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary

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Name of related party ET Pet Co., Ltd (ET Pet) Dung sen dian jing yun Co., Ltd. (Dung sen dian jing yun) Dung sen shin guang yun Co., Ltd. (Dung sen shin guang yun) Dung sen shin wen yun Co., Ltd. (Dung sen shin wen yun) Dung sen min diau yun Co., Ltd. (Dung sen min diau yun) MOOD Internet Corporation Limited (MOOD) Oscar Pet Co., Ltd. (Oscar) Pet Kingdom Co., Ltd. (Pet Kingdom) Kaou Sin Trading Co., Ltd. (Kaou Sin) Care Pet Bio-Tech Company (Care Pet Bio-Tech)

Eastern Home Shopping & Leisure Co., Ltd. (EHS) Eastern New Retail Department (EIM) Co., Ltd. (ET New Retail Department) Strawberry Cosmetics Holdings Limited Natural Beauty Bio-Technology Co., Ltd. (Natural Beauty) Happy Shopping CO., LTD. Dongsen Personal Insurance Agent Co., Ltd. Eastern Realty Co., Ltd. Dongsen Health Biotechnology Co., Ltd. (Dongsen Health Biotechnology) Eastern E-Commerce Co., Ltd. (Eastern E-Commerce) EIP TV Co., Ltd. (EIP) Chinese Non-Store Retailer Association (Non-Store) Taiwan Information and Communication Association Dongsen Social Welfare Foundation (Dongsen Social Welfare) Eastern Beauty Company Ltd.

YOUG CHENG Real Estate Management Co., Ltd. (YOUG CHENG Real Estate Management)

E-Happy Travel Co., Ltd. (E-Happy Travel)

Dongsen Health Biomedical Co., Ltd. (Dongsen Health Biomedical)

All Directors, Supervisors, general manager and vice personnel general of the Company

Relationship with the Company The Company’s subsidiary (Note 6) The Company’s subsidiary (Note 4) The Company’s subsidiary The Company’s subsidiary (Note 5) The Company’s subsidiary The Company’s subsidiary (Note 7) The Company’s subsidiary (Note 1) The Company’s subsidiary (Note 1) The Company’s subsidiary (Note 1) The Company’s subsidiary (Note 2) An associate An associate

An associate An associate An associate Other related parties Other related parties (Note 11) Other related parties

Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties (Note 10) Other related parties

Other related parties Other related parties

Key management personnel

• Note 1: ET Pet resolved on November 4, 2021 to acquire the rest interests of 20% in subsidiaries, Oscar, Pet Kingdom and Kaou Sin at the amount of $90,082. Additionally, the interests in

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Oscar were acquired partially in December, 2021 and January, 2022, respectively. ET Pet’s Board of Directors resolved to make a consolidation by merger of Oscar, Pet Kingdom and Kaou Sin. Meanwhile ET Pet was the surviving company. The reference date of merger was on November 1, 2022.

• Note 2: On March 16, 2022, the ET Pet’s Board of Directors resolved to invest $7,000 in Care Pet Bio-Tech with a 100% shareholding, which was registered on May 11, 2022. It did not participate in the cash capital increase on July 14 of the same year, thereby reducing its shareholding to 70%. All registration procedures had been completed on August 4, 2022.

• Note 3: The Company approved to liquidate Grand Richness (Hong Kong) on June 8, 2022. The liquidation procedures were finished on January 13, 2023.

• Note 4: ET New Media approved to liquidate Dung sen dian jing yun on June 22, 2022. The liquidation procedures were finished on February 23, 2023.

• Note 5: ET New Media approved to liquidate Dung sen shin wen yun on June 24, 2022. The liquidation procedures were finished on April 21, 2023.

• Note 6: On December 6, 2022, the board of directors of the subsidiary, ET Pet, resolved a capital injection by cash with an investment amount of $500,000, and the reference date was on December 26, 2022. The Company participated in the cash capital injection by $416,250, and obtained shareholding of 59.46%. Therefore, ET Pet became a subsidiary controlled by the Company directly.

• Note 7: On December 13, 2022, the ET New Media’s Board of Directors resolved to invest $50,000 in Mood with a 100% shareholding, which was registered on December 27, 2022.

• Note 8: FESS-Bermuda and Eastern Media Communication (Hong Kong) singed an agreement on transferring ownership of RICHNESS TRADING (SHANGHAI) on July 27, 2022. FESSBermuda sold all of its shares to Eastern Media Communication (Hong Kong). The registration procedures had been completed on January 17, 2023.

• Note 9: The Company approved to liquidate FESS-Bermuda on March 16, 2023. The liquidation procedures were finished on August 22, 2023.

• Note 10: The original Eastern Realty Co., Ltd. was renamed as Eastern Beauty Company Ltd. on April 7,2023.

• Note 11: The precursor of the new Eastern Realty Co., Ltd. was Xin Wang real estate agency Co., Ltd.. The registration of changing the name of the company was finished on April 10, 2023.

• b. Significant transactions with related parties

• (a) Receivables

==> picture [391 x 205] intentionally omitted <==

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

December 31, December 31,
Accounts Related parties
2023 2022
Other receivables Subsidiaries $ 2,113 $ 4,714
Other receivables Associates 1,297 1,733
Other receivables [Other related ] 89 35
parties
$ 3,499 $ 6,482
(b) Payables
December 31, December 31,
Accounts Related parties
2023 2022
Other payables Associates 29 6,003
Other payables [Other related ] 1,858 12
parties
$ 1,887 $ 6,015
----- End of picture text -----

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• (c) Loans to related parties

(c) Loans to related parties
ET New Media Care Pet Bio-Tech Interest revenue: ET New Media ET Pet Care Pet Bio-Tech	December 31, 2023 December 31, 2022 $ 300,000 $ 260,000 - 48,000 $ 300,000 $ 308,000 For theyears ended December 31	December 31, 2022
	2023 $ 16,261 1,206 - $ 17,467	2022
		$ 12,248 30 487 $ 12,765

The interest charged by the Company to related parties is based on the average interest rate charged by financial institutions on the Company’ s short-term borrowings. All loans were unsecured and no need to recognized impairment. Interest receivables of the Company as of December 31, 2023 and 2022 were $863 and $793, respectively

• (d) Borrowings from related parties

FESS-Panama GRAND SCENE TRADING (HONG KONG) Eastern Media Communication (Hong Kong) Grand Richness (Hong Kong)	December 31, 2023 $ - - - - $ -	December 31, 2022
		$ 17,854 58,963 45,758 54,232 $ 176,807

Interest expenses:

Interest which results from the unsecured borrowings by the Company from related parties would be calculated based on the average rates in the current year obtained from financial institutions. For the years ended December 31, 2023 and 2022, the interest expenses paid to the related party were $1,097 and $1,761, respectively

• (e) Endorsement / Guarantee provided

• (e-1) For the years ended December 31, 2023 and 2022, the Company had provided a guarantee for loans taken out by related parties. The credit limits of the guarantee were $9,394,340, and $9,511,215, respectively, and the remuneration charged from related parties for using guarantees on the loans taken out (recognized as other income) was $1,549 and $1,266, respectively. As of December 31, 2023 and 2022, the receivables of guarantee provided were $488 and $392, respectively.

• (e-2) For the years ended December 31, 2023 and 2022, the related parties provided a guarantee for loans taken out by the Company. The credit limits of the guarantee were $2,730,000, and $1,530,000, respectively, and the remuneration paid to related parties for providing guarantees on the loans taken out by the Company (recognized as finance expense) was $1,164 and $511, respectively. As of December 31, 2023 and 2022, the Company’ s remuneration payable was amounted to $272 and $154, respectively

• (f) Leases

• (f-1) The Company rents out part of its office space and equipment to fulfill related

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parties’ business requirements. The rental revenues for the years ended December 31, 2023 and 2022 were amounted to $1,254 and $1,140, respectively.

  - (f-2)  As the Company applied on the remission of short-term lease contract of IFRS 16, the rental expenses for the years ended December 31, 2023 and 2022 were amounted to $587 and $782, respectively.

  - (f-3) Transaction terms for the above are the same as those for ordinary transactions.

• (g) Other

  • (g-1) For the years ended December 31, 2023 and 2022, the Company paid operating fees to associates, key management, and other related parties to fulfill its business requirements were amounted to $11,095 and $18,520, respectively.

  • (g-2) For the years ended December 31, 2023 and 2022, the Company charged management fees and miscellaneous income from related parties amounted to $732 and $483, respectively.

  • (g-3) For the years ended December 31, 2023 and 2022, related parties paid the remuneration of directors to the Company was $- and $8,928, respectively.

  • (g-4) In order to follow its operating plan, the Company donated $5,900 and $5,700 to related parties in related industries for the years ended December 31, 2023 and 2022, respectively.

  • (g-5) The Company invested $275,000, $275,000 and $220,000 in Eastern Asset in proportion to the shareholding ratio on December 15, 2023, June 30, 2023 and October 7, 2022.

  • (g-6) The Company participated in the capital increase of ET Pet by $416,250 on December 26, 2022.

  • (g-7) As of December 31, 2023 and 2022, the Company pledged stocks of subsidiaries and associates as collateral.

• c. Key management personnel compensation

and associates as collateral. Key management personnel compensation
Short-term employee benefits	For theyears ended December 31
	2023 $ 46,035	2022 $ 47,121

31. Pledged assets

Pledged assets of the Company were as follows:

==> picture [412 x 186] intentionally omitted <==

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

December 31, December 31,
Assets Purpose of pledge
2023 2022
Property, plant and
Short-term and long- term loans $ 467,038 $ 324,049
equipment
Investments accounted for
Long- term loans 8,613 15,858
using equity method
Other current financial
Reserve and its interest 136 94
assets-demand deposits
Bid bonds, performance bonds
Refundable deposits 113,029 153,989
and security deposits
Other non-current financial
assets － reserve account Deposit in long-term loans 4,554 4,000
Current financial assets at
Short-term loans and short-term
fair value through profit or 447,712 453,412
notes and bills payable
loss
Right-of-use asstes Long-term loans 94,659 96,044
$ 1,135,741 $ 1,047,446
----- End of picture text -----

32. Significant commitments and contingencies

• a. Major commitments were as follows:

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• (a) Unused standby letters of credit:

Unused standby letters of credit	December 31, 2023 $ 196,654	December 31, 2022 $ -

• (b) The Company had signed contracts relating to manage resorts in Linkuo, and also had signed services agreements relating to the hotel’s business and authorization with Formosa international hotels corporation. The Company should pay expenses proportionally while the services provided by Formosa international hotels corporation achieve the standards as the contracts recorded.

• (c) Unrecognized contractual commitments:

The Company’ s unrecognized contractual commitments are as follows:

Total contract prices Payout amount	December 31, 2023	December 31, 2022
	$ 264,747 $ 81,656	$ 8,500 $ 3,450

• b. Contingent liabilities were as follows:

• (a) On October 27, 2008, the Securities and Futures Investors Protection Center (the SFIPC) filed a lawsuit to the Taipei District Court against the ex-chairman and the general manager of the Company, together with all the previous directors and supervisors, alleging the offense of gaining an illegal benefit for Chia Hsin and Synthetic Fiber Co., Ltd. as well as for the family members of the ex-chairman. The prosecution is based on the alleged ill-gotten assets from the Company by means of false commodity transactions and capital increment in the name of Eastern International Lease Finance Co., Ltd. and Tung Kai Lease Finance Co., Ltd. (both are subsidiaries of the Company). The SFIPC also demanded the compensation of $41,038. The Taipei District Court ruled that the Company violated the Commercial Company Act. However, both the ex-chairman and the general manager were acquitted, and not only did the Company did not bear any losses from the said transaction above, but on the contrary, it gained a profit amounting to $6,894, plus an additional 5% interest arising from the delayed payment amounting to $6,884 with a total amount around $13,000. In other words, the transaction did not do any damage to the Company and its shareholders. As a result, the appeal filed against the Company was denied by the Taipei District Court on December 5, 2012. However, the SFIPC was not satisfied with the decision made by the court. Therefore, it filed another appeal, this time with the Taiwan High Court, demanding compensation amounting to $22,664. The appeal was denied on December 3, 2013. Nevertheless, the SFIPC filed an appeal once more with the Taiwan High Court on December 24, 2013. The case was transferred from the Supreme Court to the High Court on April 23, 2015, for further investigation. On May 10, 2017, the Taiwan High Court ruled against SFIPC. Therefore, SFIPC filed an appeal to the Supreme Court on June 6, 2017. On February 23, 2021, the Taiwan High Court still ruled against SFIPC. However, SFIPC filed an appeal and the Supreme Court retimed to the High Court for a third trial. Currently, the arbitration process is still in progress and the results have yet to be determined.

• (b) The Company established a legal affair department and hired external counselors to handle its legal affairs. As of December 31, 2023 and 2022, all unsettled lawsuits had no impact on its financial and business operation.

33. Losses Due to Major Disasters: None.

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34. Subsequent Events:

On February 26, 2024, a resolution was passed in the board meeting of the Company for the capital reduction. Please refer to Note 21 for the details.

35. Other

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

==> picture [436 x 365] intentionally omitted <==

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

By function For the years ended December 31
2023
Operating
By nature Operating cost Total
expense
Employee benefits
Salary $ 141,565 $ 162,919 $ 304,484
Health and labor insurance 12,304 11,270 23,574
Pension 5,121 6,153 11,274
Remuneration of directors - 9,892 9,892
Others 7,933 2,910 10,843
Depreciation expense 273,825 15,858 289,683
Amortization expense 105 1,984 2,089
By function For the years ended December 31
2022
Operating
By nature Operating cost Total
expense
Employee benefits
Salary $ 135,686 $ 174,175 $ 309,861
Health and labor insurance 12,257 10,836 23,093
Pension 5,517 6,051 11,568
Remuneration of directors - 7,553 7,553
Others 7,399 2,748 10,147
Depreciation expense 266,434 14,897 281,331
Amortization expense 75 1,095 1,170
----- End of picture text -----

Note: Some of the remuneration received by human support is not excluded from the above employee welfare expenses.

For the years ended December 31, 2023 and 2022, the information on the number of employees and employee benefit expense of the Company is as follows:

Number of employees Number of directors (non-employee) Average employee benefit expense Averageemployeesalary expense Percentage of average employee salary expense Remuneration for supervisors		For the years ended	For the years ended	December 31
		2023 261 5 $ 1,368 $ 1,189 ( 3%) $ -		2022
				257 5 $ 1,407 $ 1,230 ( 5%) $ -
				(

Compensation policies are as follows:

a. The remuneration for directors in the Article 18th of the Company’ s Articles of Incorporation, is determined based on their involvement in the Company’ s operations, contributions to the

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Company, and the general pay levels in the industry. Monthly fixed remuneration and transportation allowances paid are based on attendance in board meetings. According to the Company’ s Articles of Incorporation, there is no remuneration of directors.

• b. The Company has established the Board Performance Assessment Regulations. The Board performance evaluation is carried out every year in accordance with the evaluation procedures and evaluation indicators of the regulations. The assessment may be performed by an external independent professional institution or a panel of external experts and scholars every three years. An implementation of the evaluation report from the external independent professional institution, submit it to the Board of directors for review, and serve as a reference for selecting or nominating directors.

• c. Managers’ remuneration is based on the company’ s "Salary Management Regulations" and the responsibilities, positions, seniority, personal abilities, and experience that they are concurrently responsible for, as well as the pay level as the basis for salary evaluation. Remuneration mainly includes three parts: fixed monthly salary, bonus and employee remuneration; remuneration at the time of appointment and salary adjustments after appointment are submitted for approval in accordance with the internal audit authority, and also refer to personal performance evaluation and contribution to the Company. The reports of related performance evaluation and reasonableness of remuneration are reviewed by the Compensation Committee, and then are submitted to the Board of directors for resolution.

• d. The Company’ s year end bonus is issued to reflect the Company’ s operating performance and profit and loss in the previous year, taking into account a number of internal and external factors, and weighting individual performance appraisal, Then the proposal of year end bonus is recommended by the general manager, and is reported to the chairman for approval.

• e. The estimated employee’ s compensation of the Company is set at the rates of 3.5% of profit before income tax; and after approval by the board of directors, the employee’s compensation distributed is determined based on their salaries, contributions to the Company in the previous year, the proportion of service days for the Company and performance for individuals.

• f. In order to maintain the competitiveness of compensation, the Company evaluates the pay level in the labor market by conducting salary surveys every year. Operational performance and future development are also taken into consideration when determining the compensation policy. Compensation and performance bonuses of employees differ based on the performance of each employee in order to reward the outstanding employees for their contributions to the Company.

36. Other disclosures

• a. Information on significant transactions:

The following is the information on significant transactions required by the Regulations Governing the Preparation of Financial Reports by Securities Issuers for the Company for the year ended December 31, 2023.

• (a) Please refer to Table 1 for the loans to other parties.

• (b) Please refer to Table 2 for the guarantees and endorsements for other parties.

• (c) Please refer to Table 3 for the securities held as of December 31, 2023 (excluding investment in subsidiaries, associates and joint ventures).

• (d) Please refer to Table 4 for the individual securities acquired or disposed of at costs or prices of at least $300 million or 20% of the paid-in capital.

• (e) Please refer to Table 5 for acquisition of individual real estate at costs of at least $300 million or 20% of the paid-in capital.

• (f) Disposal of individual real estate at prices of at least $300 million or 20% of the paid-in capital: None.

• (g) Total purchases from or sales to related parties of at least $100 million or 20% of the paid-in capital: None.

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• (h) Please refer to Table 6 for the receivables from related parties of at least $100 million or 20% of the paid-in capital.

• (i) Trading in derivative instruments: None.

• b. Information on investees

• Please refer to Table 7 for the information on investees for the year ended December 31, 2023.

• c. Information on investment in Mainland China

• (a) Please refer to Table 8 for the relevant information such as the name and main business items of the investee company in Mainland China.

• (b) Please refer to Table 8 for the limitation on investment in Mainland China

• (c) Please refer to Table 8 for the significant transactions with investee companies in Mainland China.

• d. Major shareholders

Please refer to Table 9 for the major shareholders for the year ended December 31, 2023.

37. Segment information

Please refer to the consolidated financial statements for the year ended December 31, 2023.

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Eastern Media International Corporation Statement of current financial assets at fair value through profit or loss

December 31, 2023

(Experssed in Thousands of New Taiwan Dollars, Except for the Noted Items)

Name of security Category of security Shares/ Units Par value (NT$) Amount Rate Acquisition cost Fair value Movement of fair value attribute credit risk Note Price (NT$) Amount	Name of security Category of security Shares/ Units Par value (NT$) Amount Rate Acquisition cost Fair value Movement of fair value attribute credit risk Note Price (NT$) Amount
Taiwan Cement Co., Ltd. Domestic stock 6,819,555 $ 10 $ 68,196 -% $ 320,550 $ 34.85 Formosa Plastics corporation Domestic stock 4,670,000 10 46,700 -% 494,296 79.20 Momo.com Inc. Domestic stock 104,000 10 1,040 -% 55,781 509.00 Alibaba Group Overseas stock 602,000 - - -% 206,921 297.03	$ 237,661 - Note 369,864 - Note 52,936 - - 178,814 - - $ 839,275

Note: For the details of the financial instruments pledged as collateral of the Company please refer to Note 7 and 31.

～ 65 ～

Eastern Media International Corporation

Statement of changes in investments accounted for using the equity method

For the year ended December 31, 2023

(Expressed in thousands of New Taiwan Dollars)

Name of investee	Beginning Balance Addition Decrease	Beginning Balance Addition Decrease	Retained earnings	Remeasurement of defined benefitplans Investment Income or loss	Unrealized gain or loss of financial assets at fair value through other Comprehensive income Translation adjustment	Ending Balance Shares Percentage of ownership Amount Net Assets Value Collateral
	Shares Amount Shares	Amount Shares Amount
FESS-Bermuda 600,000 $ 283 - FESS-Panama 71,700 1,326,825 - Grand Richness (Hong Kong) 16,214,616 58,419 - EIC 67,641,445 479,348 - EILF 40,690,330 293,459 - TKLF 40,847,294 332,927 - EHS 6,637,500 16,518 - ET New Media 53,522,508 ( 518,576) - ET Pet 41,625,000 38,087 - EHR 32,973,086 ( 87,192) - Eastern Asset 71,500,000 707,832 55,000,000 $ 2,584,930 Add: Classified as other liabilities 668,768 $ 3,253,698		$ - $ 600,000 $ - - - - - 16,214,616 ( 55,996) - 21,407,386 - - - - - - - - - - - - - - 23,785,722 - - - - 550,000 - - $ 550,000 ( $ 55,996)	$ 72 ( 72) - 2,716 - - 933 - - - - $ 3,649	$ - ( $ 358) 787 ( 124,028) - ( 851) 398 ( 4,019) - 16,779 - 13,718 137 ( 6,633) - ( 246,278) - ( 175,087) - ( 24,003) - ( 3,775) $ 1,322 ( $ 554,535)	$ 3 $ - ( 10,337) - ( 1,572) - ( 2,899) ( 2,871) - - - - ( 997) ( 987) - - - - - - - - ($ 15,802) ($ 3,858)	- - $ - $ - None 71,700 100.00 1,193,175 1,193,175 〃 - - - - 〃 46,234,059 97.90 472,673 472,673 〃 40,690,330 53.77 310,238 310,238 〃 40,847,294 53.76 346,645 346,645 〃 6,637,500 6.51 8,971 8,971 Long term loans 53,522,508 89.20 ( 827,854) ( 827,854) None 17,839,278 59.46 ( 137,000) ( 137,000) 〃 32,973,086 60.40 ( 111,195) ( 111,195) Long term loans 126,500,000 55.00 1,254,057 1,254,057 None $ 2,509,710 1,076,049 $ 3,585,759

Note: The increase in investments resulted from acquire subsidiaries amounted to $550,000. The decrease in investments resulted from capital reduction of the investees amounting to $55,996.

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Eastern Media International Corporation Statement of changes in Property, plant and equipment

For the year ended December 31, 2023

(Expressed in thousands of New Taiwan Dollars)

Please refer to Note 13 for the details.

Statement of changes in right-of-use assets

Please refer to Note 14 for the details.

Statement of long-term loans December 31, 2023 Bank Category of loans Amount Duration Rate Collateral Note	Statement of long-term loans December 31, 2023 Bank Category of loans Amount Duration Rate Collateral Note
Mega Bank Secured loans TBB 〃 KTB 〃 Less: Current portion Fees	$ 48,000 2022.07~ 2029.07 2.55%~ 3.53% Property, plant and equipment, right-of-use assets and investments accounted for using equity method obtained by the subsidiary 56,666 2021.10~ 2026.10 〃 〃 1,291,250 2022.06~ 2031.06 〃 〃 ( 72,371) (9,886) $ 1,313,659 Statement of lease liabilities

Item(subject) Land and equipment Buildings Transportation equipment	Lease term 2019.01~2092.05 2019.06~2025.07 2021.05~2025.03	Discount rate 3%~3.25% 3%~3.5% 3%~3.25%	Ending Balance Amount
			$ 3,291,473 7,091 422 $ 3,298,986

～ 67 ～

Eastern Media International Corporation Statement of other non-current liabilities, others

December 31, 2023

Item Credit balance of investments accounted for using equity method transferred to non-current liabilities	Description Amount $ 1,076,049 Statement of operating revenue		Amount	Note

For the year ended December 31, 2023

(Expressed in thousands of New Taiwan Dollars)

Item Loading and storage revenue Loading and unloading revenue Storage revenue Other revenue Subtotal Less: Sales return	**Description **	Amount $ 1,144,310 285,746 6,514 1,436,570 - $ 1,436,570	Note

Statement of operating costs

Item Storage costs Port charges Commercial cost Maintenance cost Operating cost	Amount $ 30,436 591,581 40,894 $ 662,911	Note

～ 68 ～

Eastern Media International Corporation

Statement of operating expenses

For the year ended December 31, 2023

(Expressed in thousands of New Taiwan Dollars)

Item Salary and wages expenses Insurance expense Entertainment expense Depreciation expense Professional service fees Other expenses	Description	Amount Note $ 162,958 12,458 18,145 15,858 12,590 78,625 Less than 5% of the total account balance $ 300,634	Note

Statement of the net amount of other non operating income and expenses

Please refer to Note 25 for the details.

Statement of finance costs

Please refer to Note 25 for the details.

～ 69 ～

EASTERN MEDIA INTERNATIONAL CORPORATION Loans to other parties

For the year ended December 31, 2023

(Experssed in Thousands of New Taiwan Dollars, Except for the Noted Items)

Table 1

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Purposes of Transaction
Highest balance Range of Collateral
Actual fund financing amount for Reasons for Allowance Individual Maximum
No Name of Related of financing to interest rates
Name of lender Account name Ending balance usage amount for the business short-term for bad funding loan limit of fund
. borrower party other parties during the
during the period borrower (Note between two financing debt Item Value limits financing
during the period period %
1) parties
0 The Company ET New Media Other receivables Yes $ 700,000 $ 700,000 $ 300,000 3~3.5 2 - Operation - - $ 1,320,774 $ 1,981,161
- related parties requirements (Note 2) (Note 2)
Care Pet 3.25~3.5 1,320,774 1,981,161
0 〃 〃 Yes 150,000 50,000 - 2 - 〃 - -
Bio-Tech (Note 2) (Note 2)
1,320,774 1,981,161
0 〃 ET Pet 〃 Yes 100,000 - - 3~3.25 2 - 〃 - -
(Note 2) (Note 2)
193,125 289,687
1 EIC ET New Media 〃 Yes 205,000 205,000 165,000 3~3.5 2 - 〃 - -
(Note 3) (Note 3)
1 〃 Dung sen min 〃 Yes 10,000 - - 3.25 2 - 〃 - - 193,125 289,687
diau yun (Note 3) (Note 3)
3.25~3.5 193,125 289,687
1 〃 Mood 〃 Yes 50,000 50,000 35,000 2 - 〃 -
(Note 3) (Note 3)
Care Pet 193,125 289,687
1 〃 〃 Yes 30,000 - - 3.50 2 - 〃 -
Bio-Tech (Note 3) (Note 3)
257,901 386,851
2 TKLF ET New Media 〃 Yes 200,000 195,000 195,000 3~3.5 2 - 〃 - -
(Note 4) (Note 4)
2 〃 Dung sen min 〃 Yes 10,000 10,000 10,000 3.25~3.5 2 - 〃 - - 257,901 386,851
diau yun (Note 4) (Note 4)
Care Pet 257,901 386,851
2 〃 〃 Yes 15,000 - - 4 2 - 〃 - -
Bio-Tech (Note 4) (Note 4)
Lido International 32,238 386,851
2 〃 Other receivables No 30,000 29,000 29,000 8.5 2 - 〃 - [Shiding land ] $ 31,716
Managerment mortgage (Note 4) (Note 4)
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(to be continued)

～ 70 ～

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(continued)
Purposes of Transaction
Highest balance Range of Collateral
Actual fund financing amount for Reasons for Allowance Individual Maximum
No Name of Related of financing to interest rates
Name of lender Account name Ending balance usage amount for the business short-term for bad funding loan limit of fund
. borrower party other parties during the
during the period borrower (Note between two financing debt Item Value limits financing
during the period period %
1) parties
2 TKLF A li shan dong Other receivables No $ 20,000 $ 20,000 $ 20,000 9 2 - Operation - [Longtan land ] $ 27,085 $ 32,238 $ 386,851
fang ming shu requirements mortgage (Note 4) (Note 4)
Other receivables 230,789 346,184
3 EILF ET New Media Yes 150,000 150,000 150,000 3~3.5 2 - 〃 - -
- related parties (Note 5) (Note 5)
Care Pet 230,789 346,184
3 [〃] 〃 Yes 13,000 - - 4 2 - 〃 - -
Bio-Tech (Note 5) (Note 5)
28,849 346,184
3 [〃] Sunflower leisure Other receivables No 20,000 - - 9 2 - 〃 - -
(Note 5) (Note 5)
〃 DE-NIAN 28,849 346,184
3 INTERNATIONA 〃 No 28,000 28,000 28,000 8 2 - 〃 - [Gongliao land ] 31,163
mortgage (Note 5) (Note 5)
L INC.
〃 JN 28,849 346,184
3 AGRICULTURE 〃 No 22,000 22,000 22,000 8 2 - 〃 - [Gongliao land ] 24,485
mortgage (Note 5) (Note 5)
CORPORATION
GRAND SCENE 84,351 168,703
Other receivables
4 TRADING The Company Yes 58,954 - - 1 2 - 〃 - -
- related parties
(HONG KONG) (Note 6) (Note 6)
84,351 168,703
4 〃 GSMC-Cayman 〃 Yes 58,935 58,935 58,935 1 2 - 〃 - -
(Note 6) (Note 6)
Eastern Media 48,754 97,509
5 Communication The Company 〃 Yes 45,750 - - 1 2 - 〃 - -
(Hong Kong) (Note 7) (Note 7)
48,754 97,509
5 〃 FESS-Pananma 〃 Yes 43,219 43,219 43,219 1 2 - 〃 - -
(Note 7) (Note 7)
86,378 172,756
6 [GSMC- ] FESS-Pananma 〃 Yes 55,269 55,269 55,269 1.1 2 - 〃 - -
Cayman (Note 8) (Note 8)
1,193,174 2,386,348
7 [FESS- ] The Company 〃 Yes 49,128 - - 1 2 - 〃 - -
Panama (Note 9) (Note 9)
----- End of picture text -----

Note 1: Lending of capital has the following two types:

(1) Those with business dealings.

(2) The necessity for short-term financing.

Note 2: The Company’s total amount available for lending shall not exceed 60% of its net worth. For subsidiaries where the Company holds more than 50% of the shares, the individual amount available for lending shall not exceed 40% of its net worth in the most recent financial statements. For subsidiaries where the Company holds less than 50% of the shares, the individual amount available for lending shall not exceed 5% of its net worth in the most recent financial statements.

Note 3: For EIC, the aggregate amount available for lending shall not exceed 60% of its net worth in the most recent financial statements. The individual amount available for lending to its parent company, subsidiaries or to its parent company’s subsidiary company shall not exceed 40% of its net worth in the most recent financial statements.

Note 4: For TKLF, the aggregate amount available for lending shall not exceed 60% of its net worth in the most recent financial statements. The individual amount available for lending to its parent company or to its parent company’s subsidiary company shall not exceed 40% of its net worth in the most recent financial statements. The individual amount available for lending shall not exceed 5% of its net worth in the most recent financial statements.

Note 5: For EILF, the aggregate amount available for lending shall not exceed 60% of its net worth in the most recent financial statements. The individual amount available for lending to its parent company or to its parent company’s subsidiary company shall not exceed 40% of its net worth in the most recent financial statements. The individual amount available for lending to other companies short-term financing facility, if necessary, shall not exceed 5% of its net worth in the most recent financial statements. Note 6: For GRAND SCENE TRADING (HONG KONG), the aggregate amount available for lending shall not exceed 200% of its net worth in the most recent financial statements. The individual amount available for lending to its parent company shall not exceed 100% of its net worth in the most recent financial statements.

Note 7: For Eastern Media Communication (Hong Kong), the aggregate amount available for lending shall not exceed 200% of its net worth in the most recent financial statements. The individual amount available for lending to its parent company shall not exceed 100% of its net worth in the most recent financial statements.

(to be continued)

～ 71 ～

(continued)

Note 8: For GSMC-Cayman, the aggregate amount available for lending shall not exceed 200% of its net worth in the most recent financial statements. The individual amount available for lending to its parent company shall not exceed 100% of its net worth in the most recent financial statements. Note 9: For FESS-Panama, the aggregate amount available for lending shall not exceed 200% of its net worth in the most recent financial statements. The individual amount available for lending to its parent company shall not exceed 100% of its net worth in the most recent financial statements.

Note 10: The aforementioned intercompany transactions have been eliminated in the consolidated financial statements.

～ 72 ～

EASTERN MEDIA INTERNATIONAL CORPORATION Guarantees and endorsements for other parties For the year ended December 31, 2023

(Experssed in Thousands of New Taiwan Dollars, Except for the Noted Items) Table 2

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Counter party of guarantee and Limitation on Highest balance Property Ratio of accumulated Parent company Subsidiary Endorsements/
Balance of
endorsement amount of for guarantees Actual usage pledged for amounts of guarantees Maximum amount endorsements / endorsements / guarantees to third
No Name of guarantees and
. guarantor Relationship with guarantees and and endorsements as amount during guarantees and and endorsements to net for guarantees and guarantees to third guarantees to third parties on behalf
Name the Company (Note endorsements for a endorsements the period endorsements worth of the latest endorsements parties on behalf parties on behalf of companies in
of reporting date
I) specific enterprise during the period (Amount) financial statements of subsidiary of parent company Mainland China
13,207,738 13,207,738
0 The Company ET New Media 2 [ $ ] $ 553,652 $ 498,840 $ 312,313 $ - 15.11% [ $ ] Y N N
(Note 2) (Note 2)
13,207,738 13,207,738
0 The Company EHR 2 1,312,000 1,312,000 736,000 - 39.73% Y N N
(Note 2) (Note 2)
13,207,738 13,207,738
0 The Company Eastern Asset 2 5,875,000 5,875,000 915,245 - 177.93% Y N N
(Note 2) (Note 2)
13,207,738 13,207,738
0 The Company ET Pet 2 1,961,500 1,615,500 660,254 8,613 48.93% Y N N
(Note 2) (Note 2)
Care Pet 13,207,738 13,207,738
0 The Company 2 93,000 93,000 58,000 - 2.82% Y N N
Bio-Tech (Note 2) (Note 2)
330,193 330,193
1 EIC ET Pet 4 220,000 - - - 0.00% N N N
(Note 3) (Note 3)
330,193 330,193
1 EIC The Company 3 925,000 925,000 416,250 24,264 191.59% N Y N
(Note 3) (Note 3)
4,097,081 4,097,081
2 [FESS- ] The Company 3 1,000,000 1,000,000 800,000 1,209,106 83.81% N Y N
Panama (Note 4) (Note 4)
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• Note 1: The relationship between the one providing endorsements/guarantees and the one receiving endorsements/guarantees is classified into seven types: (1) The intercompany business transaction

(2) Companies in which the Company directly and indirectly holds more than 50% of the voting rights.

• (3) Companies that directly and indirectly hold more than 50% of the voting shares of the Company.

• (4) The Company holds, directly or indirectly, 90% or more of the voting shares of the Company.

• (5) Company that is mutually protected under contractual requirements based on the needs of the contractor.

• (6) Company that is endorsed by its shareholders in accordance with its shareholding ratio because of the joint investment relationship.

• (7) Performance guarantees for pre-sale contracts under the Consumer Protection Act.

• Note 2: The Company’s aggregate amount allows endorsement or guarantee that does not exceed 400% of its net worth in the most recent financial statements. The individual amount allows endorsement or guarantee to subsidiaries where the Group holds more than 50% of the shares that does not exceed 400% of its net worth in the most recent financial statements.

• Note 3: For EIC, the aggregate amount allows an endorsement or guarantee that does not exceed 500% of its total assets in the most recent financial statements. The individual amount allows endorsement or guarantee to subsidiaries where the Company, hokding more than 90% of shares of EIC, holds more than 90% of the shares that does not exceed 500% of its total assets or 10% of the Company’s net woth in the most recent financial statements. The limit on endorsement or guarantee was determined by 500% of EIC’s total assets of 10% of the Company’s net worth whichover is lower.

• Note 4: FESS-Panama’s aggregate amount allows endorsement or guarantee that does not exceed 300% of its net worth in the most recent financial statements. The individual amount allows endorsement or guarantee to the company which holds FESS-Panama more than 50% of the shares that does not exceed 300% of its net worth in the most recent financial statements.

～ 73 ～

EASTERN MEDIA INTERNATIONAL CORPORATION Securities held December 31, 2023

(Experssed in Thousands of New Taiwan Dollars, Except for the Noted Items) Table 3

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Ending balance
Name of Relationship
Category and name of security Account title Percentage of Note
holder with company Shares/Units Carrying value Fair value
ownership
The Company
Taiwan Cement Co., Ltd. ‑ Financial assets at fair value through profit or loss 6,819,555 $ 237,661 0.09 % $ 237,661 Note
〃 Formosa Plastics corporation ‑ 〃 4,670,000 369,864 0.07 % 369,864 Note
〃 Alibaba Group ‑ 〃 602,000 178,814 0.00 % 178,814
〃 Momo ‑ 〃 104,000 52,936 0.04 % 52,936 Note
〃 Kaohsiung Harbor Stevedoring Co., Ltd. ‑ Non-current financial assets at fair value through other comprehensive income 750,000 7,500 15.00 % 7,500
〃 Leo Exploitation Co., Ltd. ‑ 〃 165,663 - 11.43 % -
EILF Formosa Plastics corporation ‑ Financial assets at fair value through profit or loss 325,000 25,740 0.01 % 25,740 Note
〃 Taiwan Semiconductor Manufacturing Co., Ltd. ‑ 〃 70,000 41,510 0.00 % 41,510 Note
〃 Alibaba Group ‑ 〃 128,000 38,039 0.00 % 38,039
TKLF Taiwan Semiconductor Manufacturing Co., Ltd. ‑ 〃 80,000 47,440 0.00 % 47,440
〃 Formosa Plastics corporation ‑ 〃 200,000 15,840 0.00 % 15,840
〃 Alibaba Group ‑ 〃 248,700 73,910 0.00 % 73,910
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Note: For the details of the financial instruments pledged as collateral of the Company please refer to Note 7 and 31. As for other companies, please refer to the consolidated financial statements of 2023.

～ 74 ～

EASTERN MEDIA INTERNATIONAL CORPORATION

The individual securities acquired or disposed of at costs or prices of at least $300 million or 20% of the paid-in capital For the year ended December 31, 2023

(Experssed in Thousands of New Taiwan Dollars, Except for the Noted Items) Table 4

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Name Category and name Name Relationship Beginning Balance Purchases Sales Ending balance
of of Account of with Shares/ Amount Shares/ Amount Shares/ Price Cost Gain (loss) Shares/ Amount
the company security name counter party the company Units (Note 1) Units (Note 1) Units (Note 1) (Note 1) on disposal Units (Note 1)
The Company Alibaba Group Financial assets at fair value through profit or loss ‑ ‑ - $ - 1,376,000 $ 464,992 774,000 $ 294,112 258,072 $ 36,040 602,000 $ 178,814
〃 Eastern Asset Investments accounted for using equity method Eastern Asset Subsidiary 71,500,000 707,832 55,000,000 550,000 - - - - 126,500,000 1,254,057
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Note 1: Including exchange differences on financial assets designated at fair value, investments accounted for using equity method, and translation.

～ 75 ～

EASTERN MEDIA INTERNATIONAL CORPORATION

Acquisition of individual real estate at costs of at least $300 million or 20% of the paidin capital For the year ended December 31, 2023

(Experssed in Thousands of New Taiwan Dollars, Except for the Noted Items) Table 5

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

Name Types Transaction Transaction Nature Pior transaction of related counterparty Price Purpost Other
of of amount of Transfer of
Relationship
the company property date (Note) Payment Counterparty relationships Owner date Amount Reference acquistion terms
s
DEHWA CONSTRUCTION CO., Building the
Eastern asset Construction in progress 112.05.29 $ 12,000,000 $ 2,611,249 LTD.、EPOQUE CORPORATION, Non-related Not Not Not Not Agreement between headquarters of the None
party applicable applicable applicable applicable the parties
etc. Group
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Note：The transaction amount was based on the budget of this program approved by the board of the directs. The actual information should be subjected to the contracts.

～ 76 ～

EASTERN MEDIA INTERNATIONAL CORPORATION Receivables from related parties of at least $100 million or 20% of the paid-in capital December 31, 2023

(Experssed in Thousands of New Taiwan Dollars, Except for the Noted Items) Table 6

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Overdue Amounts received in subsequent
Name of company Counter party Nature of relationship Ending balance Turnover rate Allowance for bad debts
Amount Action taken period
The Company ET New Media Subsidiary $ 302,009 Not applicable $ - - $ 2,009 $ -
EIC ET New Media Subsidiary 165,487 Not applicable - - 487 -
EILF ET New Media Subsidiary 150,432 Not applicable - - 432 -
TKLF ET New Media Subsidiary 195,561 Not applicable - - 561 -
----- End of picture text -----

～ 77 ～

EASTERN MEDIA INTERNATIONAL CORPORATION Information on investees

For the year ended December 31, 2023 (Experssed in Thousands of New Taiwan Dollars, Except for the Noted Items) Table 7

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Original investment amount Ending balance Net income
Share of profits/
Name of investor Name of investee Location Main businesses and products December 31, 2023 December 31, 2022 Shares/Units Percentage of ownership Carrying value (losses) of investee losses of investee Note
FESS‑
The Company Bermuda Holding company - $ 32,161 - 0.00% - ( $ 358) ( $ 358) Note 4
Bermuda
FESS‑
The Company Panama Holding company 2,245,038 2,245,038 71,700 100.00% 1,193,175 ( 124,028) ( 124,028) Subsidiary
Panama
The Company Grand Richness (Hong Hong Kong Holding company - 672,603 - 0.00% - ( 851) ( 851) Note 1
Kong)
The Company EIC Taiwan General investing 342,117 500,525 46,234,059 97.90% 472,673 ( 4,105) ( 4,019) Subsidiary
The Company EILF Taiwan Leasing 391,195 391,195 40,690,330 53.77% 310,238 31,204 16,779 Subsidiary
The Company TKLF Taiwan Leasing 391,613 391,613 40,847,294 53.76% 346,645 25,516 13,718 Subsidiary
The Company ET Pet Taiwan Pet food and supplies and providing pet beauty service 178,393 416,250 17,839,278 59.46% ( 137,000) ( 294,440) ( 175,087) Subsidiary
The Company EHS Taiwan Department stores, supermarkets, online stores 81,978 81,978 6,637,500 6.51% 8,971 ( 101,869) ( 6,633) Associate
The Company ET New Media Taiwan Advertising, online newspaper, Produce a broadcast program 535,225 535,225 53,522,508 89.20% ( 827,854) ( 276,083) ( 246,278) Subsidiary
Management & consultancy services, leisure site management, catering
The Company EHR Taiwan 329,731 329,731 32,973,086 60.40% ( 111,195) ( 39,740) ( 24,003) Subsidiary
business, sports training business, catering business
The Company Eastern Asset Taiwan Real estate leasing 1,265,000 715,000 126,500,000 55.00% 1,254,057 ( 6,863) ( 3,775) Subsidiary
Exempt from
EIC ET New Media Taiwan Advertising, online newspaper, Produce a broadcast program 6,275 6,275 627,492 1.05% ( 9,706) ( 276,083) Subsidiary
disclosure
EIC EHS Taiwan Department stores, supermarkets, online stores 243,794 243,794 19,726,660 19.36% 26,664 ( 101,869) 〃 Associate
EIC TKLF Taiwan Leasing 77,115 77,115 7,597,500 10.00% 64,475 25,516 〃 Subsidiary
EIC EILF Taiwan Leasing 74,464 74,464 7,567,500 10.00% 57,697 31,204 〃 Subsidiary
EIC EHR Taiwan Management & consultancy services, leisure site management, catering 72,060 72,060 7,206,038 13.20% ( 24,301) ( 39,740) 〃 Subsidiary
business, sports training business, catering business
TKLF EILF Taiwan Leasing 269,766 269,766 27,243,000 36.00% 207,710 31,204 〃 Subsidiary
TKLF EHR Taiwan Management & consultancy services, leisure site management, catering 72,060 72,060 7,206,038 13.20% ( 24,301) ( 39,740) 〃 Subsidiary
business, sports training business, catering business
EILF TKLF Taiwan Leasing 278,342 278,342 27,351,000 36.00% 232,111 25,516 〃 Subsidiary
----- End of picture text -----

(to be continued)

～ 78 ～

(continued)

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Original investment amount Ending balance Net income
Share of profits/
Name of investor Name of investee Location Main businesses and products December 31, 2023 December 31, 2022 Shares/Units Percentage of ownership Carrying value (losses) of investee losses of investee Note
Management & consultancy services, leisure site management, catering Exempt from
EILF EHR Taiwan $ 72,060 $ 72,060 7,206,038 13.20% ( $ 24,301) ( $ 39,740) Subsidrary
business, sports training business, catering business disclosure
FESS‑ GSMC‑ Cayman Holding company 137,363 137,363 450,000 100.00% 86,378 1,017 〃 Subsidrary
Panama Cayman Islands
FESS‑ Eastern Media Holding company 305 305 28,569,840 100.00% 48,754 ( 567) 〃 Subsidrary
Communication (Hong Hong Kong
Panama
Kong)
FESS‑ Natural Beauty Cayman Holding company 2,060,871 2,060,871 600,630,280 30.00% 1,209,106 ( 60,134) 〃 Associate
Panama Islands
GSMC‑ GRAND SCENE Hong Kong Holding company 125,153 125,153 3,198,000 100.00% 84,351 1,282 〃 Subsidrary
TRADING (HONG
Cayman
KONG)
ET New Media Dung sen shin guang yun Taiwan Audiovisual and singing, information leisure 3,000 3,000 300,000 100.00% 856 ( 2,196) 〃 Subsidrary
ET New Media Dung sen min diau yun Taiwan Amusement park information leisure 5,000 5,000 500,000 100.00% 3,371 1,577 〃 Subsidrary
ET New Media Mood Taiwan Marketing, research and data collection 50,000 50,000 5,000,000 100.00% ( 30,364) ( 80,364) 〃 Subsidrary
ET New Media Dung sen shin wen yun Taiwan Video advertising service - 5,000 - 0.00% - - 〃 Note 2
ET New Media Dung sen dian jing yun Taiwan Amusement park information leisure - 100 - 0.00% - - 〃 Note 3
ET New Media ET Pet Taiwan Pet food and supplies and providing pet beauty service 79,286 185,000 7,928,568 26.43% ( 60,889) ( 294,440) 〃 Subsidrary
ET Pet Care Pet Bio-Tech Taiwan Pet food and supplies and providing pet beauty service 7,000 7,000 700,000 70.00% ( 330) ( 6,064) 〃 Subsidrary
----- End of picture text -----

Note 1: The Company approved to liquidate Grand Richness (Hong Kong) on June 8, 2022. The liquidation procedures were finished on January 13, 2023. Note 2: ET New Media approved to liquidate Dung sen shin wen yun on June 24, 2022. The liquidation procedures were finished on April 21, 2023. Note 3: ET New Media approved to liquidate Dung sen dian jing yun on June 22, 2022. The liquidation procedures were finished on February 23, 2023. Note 4: The Company approved to liquidate FESS-Bermuda on March 16, 2023. The liquidation procedures were finished on August 22, 2023.

～ 79 ～

EASTERN MEDIA INTERNATIONAL CORPORATION Information on investment in Mainland China For the year ended December 31, 2023

(Experssed in Thousands of New Taiwan Dollars, Except for the Noted Items) Table 8

1. Relevant information such as the name and main business items of the investee company in Mainland China:

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Accumulated outflow of Accumulated outflow of Accumulated
Method of Investment flows Net income
Main businesses Total amount of paid investment from investment from Percentage of Investment Book remittance of
Name of investee investmen (losses) of the
and products in capital Taiwan as of January 1, Taiwan as of September ownership income (losses) Value earnings in
t 2023 Outflow Inflow 30, 2023 investee current period
Eastern Enterprise
Development (Shanghai) Operating international circulation logistics business $ - Note 2 $ 1,004,054 $ - $ - $ 1,004,054 $ - - % $ - $ - $ -
Ltd
RICHNESS TRADING
Retail of cosmetics, jewelry and grogercies 1,085,100 Note 3 1,169,861 - - 1,169,861 ( 747) 100.00 % ( 747) 2,463 -
(SHANGHAI)
Nanjing Yun Fu Wholesale trading 44,953 Note 4 92,115 - - 92,115 ( 129) 100.00 % ( 129) 3,785 -
Jiangsu Sen Fu Da Research and development of film and television technology 43,270 Note 5 - - - - - 34.00 % - - -
Shanghai Natural Beauty
Fuli Cosmetics Company Production and sale of beauty care products and provision of 432,349 Note 3 - - - - 21,807 30.00 % 6,542 194,747 -
beauty and body care services
Limited
Shanghai Natural Beauty
Bio-Med Company Sales of health care products 93,120 Note 3 - - - - 2,107 30.00 % 632 31,624 -
Limited
Shanghai Natural Beauty
Cosmetics Company Production and sale of beauty care products and provision of 1,049,168 Note 3 - - - - 81,202 30.00 % 24,361 339,056 -
beauty and body care services
Limited
----- End of picture text -----

(to be continued)

～ 80 ～

(continued)

Note 1: Except that the investment gain (loss) of RICHNESS TRADING (SHANGHAI) and Nanjing Yun Fu was recognized based on the financial statements audited by the same audit team of the Company, the rest of the investment gain (loss) was recognized based on financial statements audited by other audit teams.

Note 2: The Group indirectly made the investment through FESS-Panama, and was complete disposal of all shares on April 23, 2018.

Note 3: The Group indirectly invested through FESS-Panama.

Note 4: The Group indirectly invested through FESS-Panama, and the investment was handling capital reduction and returning shares of CNY $9,467 on February 1, 2018, the amount of the share is remitted back to the GRAND SCENE TRADING (HONG KONG). Note 5: The Group indirectly invested t through Nanjing Ji Cheng on August 30, 2012.

Note 6: The amount in the table is translated by the spot rate on the financial reporting date and the average rate throughout the year.

2. Limitation on investment in Mainland China:

Company Name	**Accumulated Investment in Mainland China as of December 31, 2023 **	Investment Amounts Authorized by Investment Commission, MOEA Upper Limit on Investment	Investment Amounts Authorized by Investment Commission, MOEA Upper Limit on Investment
The Company	$ 2,266,029	$ 4,014,872	$ 2,530,705

Note: The limit on investment was determined by 60% of the individual or consolidated total net worth whichover is higher.

3. Significant transactions with investee companies in Mainland China:

For the Group’s significant direct or indirect transactions (eliminated when compiling the consolidated financial statements) with investee companies in Mainland China for the years ended December 31, 2023, please refer to “Information on significant transactions” above.

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EASTERN MEDIA INTERNATIONAL CORPORATION Major shareholders

December 31, 2023 (Experssed in Units) Table 9

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Shareholding Shareholders name Shares Percentage
Jinxin Trading Co., Ltd. 28,932,001 9.63%
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