ENNOSTAR — Audit Report / Information 2022

Dec 29, 2022

ENNOSTAR INC.

PARENT COMPANY ONLY FINANCIAL

STATEMENTS AND INDEPENDENT AUDITORS’

REPORT DECEMBER 31, 2022 and 2021

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For the convenience of readers and for information purpose only, the auditors’ report and the accompanying financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. In the event of any discrepancy between the English version and the original Chinese version or any differences in the interpretation of the two versions, the Chinese-language auditors’ report and financial statements shall prevail.

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INDEPENDENT AUDITORS’ REPORT

PWCR22000401

To the Board of Directors and Shareholders of ENNOSTAR Inc.

Opinion

We have audited the accompanying parent company only balance sheet of ENNOSTAR Inc. (the “Company’’)as at December 31, 2022 and 2021, and the related parent company only statements of comprehensive income, of changes in equity and of cash flows for the years then ended, and notes to the parent company only financial statements, including a summary of significant accounting policies.

In our opinion, based on our audits and the reports of other independent auditors, as described in the other matters section of our report, the accompanying parent company only financial statements present fairly, in all material respects, the parent company only financial position of the Company as at December 31, 2022 and 2021, 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 that came into effect as endorsed by the Financial Supervisory Commission.

Basis for opinion

We conducted our audit in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the parent company only Financial Statements section of our report. We are independent of the Company in accordance with the Norm of Professional Ethics for Certified Public Accountants of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with the these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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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, we do not provide a separate opinion on these matters.

Key audit matters in relation to the parent company only financial statements for the year ended December 31, 2022 are outlined as follows:

Investments accounted for using the equity method-evaluation of inventories

Description

The subsidiaries of the Company is primarily engaged in manufacturing and sales of LED wafers, chips, packages and modules. Due to rapid technological developments, short product lifespans and frequent fluctuations of market prices, the risk of decline in market value and obsolescence for inventories is high. The subsidiaries of the Company evaluates net realized values for inventories which aged over a specific period of time and specific obsolete inventories in order to provide allowance for valuation loss. Since the identification of the above obsolete inventories and their respective net realizable values are subject to management’s judgment, it was identified as one of the key audit matters.

How our audit addressed the matter

Our key audit procedures performed in respect of the above included the following:

1. Obtained an understanding of the Company and subsidiaries’s operations and the nature of its industry and interviewed with management to understand the probability of future sales for those out-of-date inventories and to evaluate the reasonableness of allowance for valuation loss.

2. Obtained and validated the accuracy of the detailed listings of inventories aged over a specific period of time and specific obsolete inventories. Validated information of historical sales and discounts for those obsolete inventories to assess the reasonableness of policies in providing allowance for inventory valuation loss.

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Other matter – Audit by Other Independent Auditors

We did not audit the 2022 and 2021 financial statements of certain equity investments accounted for under the equity method. Those financial statements were audited by other independent auditors, whose reports thereon were furnished to us, and our opinion expressed herein, insofar as it relates to the amounts included in the parent company only financial statements and certain information disclosed in Note 13 relative to these investments, was based solely on the reports of the other independent auditors. These equity investments amounted to NT$2,049,834 thousand and NT$1,320,489 thousand, representing 3.75% and 2.50% of the parent company only total assets as of December 31, 2022 and 2021, and their comprehensive loss (including share of loss of associates and joint ventures accounted for under equity method and share of other comprehensive income/(loss) of associates and joint ventures accounted for under equity method) amounted to NT$139,085 thousand and NT$1,315 thousand, representing 67.06% and 0.06% of the parent company only comprehensive gain for the years then ended.

Responsibilities of management and those charged with governance for the parent company only financial statements

Management is responsible for the preparation and fair presentation of the parent company only financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers that came into effect as endorsed by the Financial Supervisory Commission, 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 audit committee, are responsible for overseeing the Company’s financial reporting process.

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

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

1. Identify and assess the risks of material misstatement of the parent company only financial statements, whether due to fraud or error, design and perform audit procedures 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 auditor’s 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.

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1. 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.

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

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Li, Tien-Yi

[Chou, Chien-Hung ]

For and on Behalf of PricewaterhouseCoopers, Taiwan

February 23, 2023

------------------------------------------------------------------------------------------------------------------------------------------------The accompanying parent company only financial statements are not intended to present the financial position and results of operations and cash flows in accordance with accounting principles generally accepted in countries and jurisdictions other than the Republic of China. The standards, procedures and practices in the Republic of China governing the audit of such financial statements may differ from those generally accepted in countries and jurisdictions other than the Republic of China. Accordingly, the accompanying parent company only financial statements and independent auditors’ report are not intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic of China, and their applications in practice.

As the financial statements are the responsibility of the management, PricewaterhouseCoopers, Taiwan cannot accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.

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ENNOSTAR INC.

PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2022 AND 2021

(Expressed in thousands of New Taiwan dollars)

Assets	December 31, 2022 December 31, 2021 Notes AMOUNT % AMOUNT % 6(1) $ 690,933 1 $ 43,752 - 59 - 10 - 7 402,738 1 59,564 - 12,793 - 2,499 - 4 - - - 1,106,527 2 105,825 - 6(2) 53,490,974 98 52,707,404 100 6(3) 10,978 - 10,157 - 25,408 - 408 - 53,527,360 98 52,717,969 100 $ 54,633,887 100 $ 52,823,794 100 $ 100,000 - $ 150,000 - 97,222 - 304,026 1 7 3,270 - 46,725 - 27,952 - - - 1,166 - 788 - 229,610 - 501,539 1 8 - 10 - 229,618 - 501,549 1 6(6) 7,547,840 14 6,852,514 13 6(7) 46,421,664 85 43,830,638 83 6(8) 216,945 1 - - 290,598 1 - - 147,022 - 2,169,446 4 6(9) 75,010 - ( 235,543) - 6(6) ( 294,810) ( 1) ( 294,810) ( 1) 54,404,269 100 52,322,245 99 $ 54,633,887 100 $ 52,823,794 100
Current assets 1100 Cash and cash equivalents 1200 Other receivables 1210 Other receivables - related parties 1410 Prepayments 1470 Other current assets 11XX Current Assets Non-current assets 1550 Investments accounted for under equity method 1600 Property, plant and equipment 1900 Other non-current assets 15XX Non-current assets 1XXX Total assets Liabilities and Equity
Current liabilities 2100 Short-term borrowings 2200 Other payables 2220 Other payables to related parties 2230 Current tax liabilities 2300 Other current liabilities 21XX Current Liabilities Non-current liabilities 2600 Other non-current liabilities 2XXX Total Liabilities Equity Share capital 3110 Share capital - common stock Capital surplus 3200 Capital surplus Retained earnings 3310 Legal reserve 3320 Special reserve 3350 Unappropriated retained earnings Other equity interest 3400 Other equity interest 3500 Treasury stocks 3XXX Total equity 3X2X Total liabilities and equity

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

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ENNOSTAR INC.

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME YEARS ENDED DECEMBER 31, 2022 AND 2021

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

Items

Year ended December 31 2022 2021 Notes AMOUNT % AMOUNT % 6(2)(10) and 7 $ 244,729 100 $ 2,417,618 100 6(8) ( 179,138 ) ( 73) ( 235,213) ( 10) 65,591 27 2,182,405 90 65,591 27 2,182,405 90 65,591 27 2,182,405 90 7,261 3 39 - 1,969 1 241 - 195 - ( 2,988) - ( 718 ) - ( 1,348) - 8,707 4 ( 4,056) - 74,298 31 2,178,349 90 6(13) ( 36,274 ) ( 15) - - $ 38,024 16 $ 2,178,349 90 ($ 233,252 ) ( 95) $ 285,081 12 6(13) ( 39,989 ) ( 17) ( 122,992) ( 5) ( 273,241 ) ( 112) 162,089 7 443,043 181 ( 210,366) ( 9) 6(13) ( 428 ) - ( 194,616) ( 8) 442,615 181 ( 404,982) ( 17) $ 169,374 69 ($ 242,893) ( 10) $ 207,398 85 $ 1,935,456 80 6(14) $ 0.05 $ 3.21 $ 0.05 $ 3.20

4000 Sales revenue 5000 Operating costs 5900 Operating margin 5950 Net operating margin 6900 Operating profit Non-operating income and expenses 7100 Interest income 7010 Other income 7020 Other gains and losses 7050 Finance costs 7000 Total non-operating income and expenses 7900 Profit before income tax 7950 Income tax expense 8200 Profit for the year Other comprehensive income Components of other comprehensive income that will not be reclassified to profit or loss 8330 Share of other comprehensive income of subsidiaries, associates and joint ventures accounted for using equity method, components of other comprehensive income that will not be reclassified to profit or loss 8349 Income tax related to components of other comprehensive income that will not be reclassified to profit or loss 8310 Components of other comprehensive (loss) income that will not be reclassified to profit or loss Components of other comprehensive income that will be reclassified to profit or loss 8380 Share of other comprehensive income of subsidiaries, associates and joint ventures accounted for using equity method, components of other comprehensive income that will be reclassified to profit or loss 8399 Income tax related to components of other comprehensive income that will be reclassified to profit or loss 8360 Components of other comprehensive income (loss) that will be reclassified to profit or loss 8300 Other comprehensive income (loss) 8500 Total comprehensive income Earnings per share (NT$) 9750 Total basic earnings per share 9850 Total diluted earnings per share

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

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ENNOSTAR INC.

PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY YEARS ENDED DECEMBER 31, 2022 AND 2021

(Expressed in thousands of New Taiwan dollars)

2021 January 6 (Date of establishment) Profit for the year Other comprehensive income(loss) for the year Total comprehensive income(loss) Issuance of ordinary shares under business combination Expiration of restricted employee stock Distribution to subsidiaries' employee compensation Proceeds from treasury shares transferred to employees Difference between consideration and carrying amount of subsidiaries acquired and disposed Net change in equity of associates and joint ventures Changes in ownership interests in subsidiaries accounted for using equity method Proceeds from disposal of financial assets at fair value through other comprehensive income Shares of the parent company held by subsidiaries transferred to treasury shares December 31 2022 January 1 Profit for the year Other comprehensive income(loss) for the year Total comprehensive income(loss) Appropriation of 2021 earnings Legal reserve Special reserve Cash dividends Proceeds from issurance of share capital Expiration of restricted employee stock Changes in ownership interests in subsidiaries accounted for using equity method Net change in equity of associates and joint ventures Difference between consideration and carrying amount of subsidiaries acquired and disposed Proceeds from disposal of financial assets at fair value through other comprehensive income December 31	Notes		Share capital - common stock				Capital Reserves				Unappropriated retained earnings		Other equityinterest	Other equityinterest	Other equityinterest		Treasurystocks		Total
					Capital surplus		Legal reserve		Special reserve			d	Cumulative translation ifferences of foreign operations		Unrealised gains (losses) from financial assets measured at fair value through other comprehensive income
	6(6) 6(7) 6(6) 6(6) 6(7) 6(7) 6(7) 6(7) 6(7) 6(8)(9) 6(7) 6(8) 6(6) 6(7) 6(7) 6(7) 6(7) 6(8)(9)		$ - - - - 6,859,527 ( 7,013 ) - - - - - - - $ 6,852,514 $ 6,852,514 - - - - - - 700,000 ( 4,674 ) - - - - $ 7,547,840		$ - - - - 42,957,636 7,013 195,791 115,823 ( 7,754 ) ( 12,617 ) 574,746 - - $ 43,830,638 $ 43,830,638 - - - - - - 2,927,400 4,674 ( 257,645 ) 104,634 ( 188,037 ) - $ 46,421,664		$ - - - - - - - - - - - - - $ - $ - - - - 216,945 - - - - - - - - $ 216,945		$ - - - - - - - - - - - - - $ - $ - - - - - 290,598 - - - - - - - $ 290,598		$ - 2,178,349 71 2,178,420 - - - - - - - ( 8,974 ) - $ 2,169,446 $ 2,169,446 38,024 19,477 57,501 ( 216,945 ) ( 290,598 ) ( 1,365,881 ) - - - - ( 45,848 ) ( 160,653 ) $ 147,022		$ - - ( 404,982 ) ( 404,982 ) - - - - ( 1,553 ) - - - - ($ 406,535 ) ($ 406,535 ) - 442,615 442,615 - - - - - - - 3 - $ 36,083		$ - - 162,018 162,018 - - - - - - - 8,974 - $ 170,992 $ 170,992 - ( 292,718 ) ( 292,718 ) - - - - - - - - 160,653 $ 38,927		$ - - - - - - - - - - - - ( 294,810 ) ($ 294,810 ) ($ 294,810 ) - - - - - - - - - - - - ($ 294,810 )		$ - 2,178,349 ( 242,893 ) 1,935,456 49,817,163 - 195,791 115,823 ( 9,307 ) ( 12,617 ) 574,746 - ( 294,810 ) $ 52,322,245 $ 52,322,245 38,024 169,374 207,398 - - ( 1,365,881 ) 3,627,400 - ( 257,645 ) 104,634 ( 233,882 ) - $ 54,404,269

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

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ENNOSTAR INC.

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2022 AND 2021

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax Adjustments Adjustments to reconcile profit (loss) Depreciation Interest expense Interest income Dividend revenue Share of profit of associates and joint ventures accounted for under the equity method Distribution of compensation to employees Compensation distributed to subsidiaries’ employees Changes in operating assets and liabilities Changes in operating assets Other receivables Other receivables-related parties Prepayments Other current assets Changes in operating liabilities Other payables Other payables-related parties Other current liabilities Cash (outflow) inflow generated from operations Dividend received Interest received Interest paid Income tax paid Net cash flows from operating activities CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of investments accounted for under the equity method Acquisition of property, plant and equipment Increase in refundable deposits Net cash flows used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES (Decrease) increase in short-term loans (Decrease) increase in guarantee deposits received Proceeds from issurance of share capital Cash dividends paid Net cash flows from financing activities Net increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year

YearendedDecember 31 Notes 2022 2021 $ 74,298 $ 2,178,349 6(3)(11) 895 71 718 1,348 ( 7,261 ) ( 143 ) - ( 6,701 ) 6(2) ( 67,110 ) ( 2,191,207 ) - 195,791 ( 1,494 ) - - ( 10 ) ( 343,174 ) ( 59,564 ) ( 10,294 ) ( 2,499 ) ( 4 ) - ( 198,537 ) 294,025 ( 43,455 ) 46,725 378 788 ( 595,040 ) 456,973 1,881,651 1,806,701 7,202 143 ( 718 ) ( 1,348 ) ( 8,312 ) - 1,284,783 2,262,469 ( 2,814,135 ) ( 2,368,092 ) 6(15) ( 9,984 ) ( 227 ) ( 25,000 ) ( 408 ) ( 2,849,119 ) ( 2,368,727 ) 6(16) ( 50,000 ) 150,000 6(16) ( 2 ) 10 3,627,400 - ( 1,365,881 ) - 2,211,517 150,010 647,181 43,752 43,752 - $ 690,933 $ 43,752

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

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ENNOSTAR INC.

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS

FOR THE YEAR ENDED DECEMBER 31, 2022 AND THE PERIOD FROM JANUARY 6, 2021 (DATE OF ESTABLISHMENT) TO DECEMBER 31, 2021

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

1. HISTORY AND ORGANIZATION

Ennostar Inc. (the “Company”) was incorporated on January 6, 2021. The Company’s share have been traded on the Taiwan Stock Exchange in the Republic of China since the date of its incorporation. The share exchange transaction, wherein the Company was established by Epistar Corporation ( “Epistar”) and acquired all issued and outstanding ordinary shares of Epistar and Lextar Electronics Corporation (“ Lextar”) by way of share exchange, has been approved both at Epistar’s board meeting on June 18, 2020 and special shareholders’ meeting on August 7, 2020. The share exchange was conducted at an exchange ratio of 1 ordinary share of Epistar and Lextar for 0.5 and 0.275 ordinary share of the Company respectively. As a result, Epistar and Lextar became wholly-owned subsidiaries of the Company on January 6, 2021, and both of Epistar’s and Lextar’s ordinary shares have been delisted while the ordinary shares of the Company were listed starting from the same date under the symbol “3714”. The Company was mainly engaged in the management of investee business.

1. THE DATE OF AUTHORIZATION FOR ISSUANCE OF THE PARENT COMPANY ONLY FINANCIAL STATEMENTS AND PROCEDURES FOR AUTHORIZATION

These parent company only financial statements were authorized for issuance by the Board of Directors on February 23, 2023.

1. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS (1) Effect of the adoption of new issuances of or amendments to International Financial Reporting Standards (“IFRS”) as endorsed by the Financial Supervisory Commission (“FSC”) New standards, interpretations and amendments endorsed by FSC effective from 2022 are as follows:

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Effective date by
International Accounting
New Standards, Interpretations and Amendments Standards Board
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	Standards (“IFRS”) as endorsed by the Financial Supervisory Commission (“FSC”) New standards, interpretations and amendments endorsed by FSC effective from 2022 are as follows: New Standards,Interpretations andAmendments Effective date by International Accounting StandardsBoard
(2)	The above standards and interpretations have no significant impact to the Company’s financial condition and financial performance based on the Company’s assessment. Effect of new issuances of or amendments to IFRSs as endorsed by the FSC but not yet adopted by Amendments to IFRS 3, ‘Reference to the conceptual framework’ January 1, 2022 Amendments to IAS 16, ‘Property, plant and equipment: proceeds before intended use’ January 1, 2022 Amendments to IAS 37, ‘Onerous contracts—cost of fulfilling a contract’ January 1, 2022 Annual improvements to IFRS Standards 2018–2020 January 1, 2022
	the Company New standards, interpretations and amendments endorsed by the FSC effective from 2023 are as follows:

follows:
New Standards,Interpretations and Amendments	Effective date by International Accounting Standards Board
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’	January 1, 2023 January 1, 2023 January 1, 2023

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The above standards and interpretations have no significant impact to the Company’s financial condition and financial performance based on the Company’s assessment.

(3) IFRSs issued by IASB but not yet endorsed by the FSC

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

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Effective date by
International Accounting
New Standards, Interpretations and Amendments Standards Board
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endorsed by the FSC are as follows: New Standards,Interpretations andAmendments	Effective date by International Accounting StandardsBoard
Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets	To be determined by
between an investor and its associate or joint venture’	International Accounting
	Standards Board
Amendments to IFRS 16, ‘Lease liability in a sale and leaseback’	January 1, 2024
IFRS 17, ‘Insurance contracts’	January 1, 2023
Amendments to IFRS 17, 'Insurance contracts'	January 1, 2023
Amendment to IFRS 17, 'Initial application of IFRS 17 and IFRS 9 –	January 1, 2023
comparative information'
Amendments to IAS 1, ‘Classification of liabilities as current	January 1, 2024
or non-current’
Amendments to IAS 1, ‘Non-current liabilities with covenants’	January 1, 2024
The above standards and interpretations have no significant impact to	the Company’s financial
condition and financial performance based on the Company’s assessment.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies applied in the preparation of these parent company only financial statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

(1) Compliance statement

The parent company only financial statements of the Company have been prepared in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers”.

• (2) Basis of preparation

• A. Except for the following items, these parent company only financial statements have been prepared under the historical cost convention:

  • (a) Financial assets and financial liabilities (including derivative instruments) at fair value through profit or loss.

  • (b) Financial assets at fair value through other comprehensive income.

  • (c) Defined benefit liabilities recognized based on the net amount of pension fund assets less present value of defined benefit obligation.

• B. The preparation of financial statements in compliance with International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the FSC (collectively referred herein as the “IFRSs”) requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Company’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the parent company only financial statements are disclosed in Note 5.

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(3) Foreign currency translation

• Items included in the financial statements of each of the Company’s entities are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The parent company only financial statements are presented in New Taiwan dollars, which is the Company’s functional currency.

Foreign currency transactions and balances

• A. Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions are recognized in profit or loss in the period in which they arise.

• B. Monetary assets and liabilities denominated in foreign currencies at the period end are retranslated at the exchange rates prevailing at the balance sheet date. Exchange differences arising upon re-translation at the balance sheet date are recognized in profit or loss.

• C. Non-monetary assets and liabilities denominated in foreign currencies held at fair value through profit or loss are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognized in profit or loss as part of the fair value gain or loss. Nonmonetary assets and liabilities denominated in foreign currencies held at fair value through other comprehensive income are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognized in other comprehensive income. However, nonmonetary assets and liabilities denominated in foreign currencies that are not measured at fair value are translated using the historical exchange rates at the dates of the initial transactions.

• D. All other foreign exchange gains and losses based on the nature of those transactions are presented in the statement of comprehensive income within “other gains and losses”.

• (4) Classification of current and non-current items

• A. Assets that meet one of the following criteria are classified as current assets; otherwise they are classified as non-current assets:

  • (a) Assets arising from operating activities that are expected to be realized, or are intended to be sold or consumed within the normal operating cycle;

  • (b) Assets held mainly for trading purposes;

  • (c) Assets that are expected to be realized within twelve months from the balance sheet date;

  • (d) Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are to be exchanged or used to pay off liabilities more than twelve months after the balance sheet date.

• B. Liabilities that meet one of the following criteria are classified as current liabilities; otherwise they are classified as non-current liabilities:

  • (a) Liabilities that are expected to be settled within the normal operating cycle;

  • (b) Liabilities arising mainly from trading activities;

  • (c) Liabilities that are to be settled within twelve months from the balance sheet date;

  • (d) Liabilities for which the repayment date cannot be extended unconditionally to more than twelve months after the balance sheet date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

• (5) Cash equivalents

• Cash equivalents refer to short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Time deposits that meet the definition above and are held for the purpose of meeting short-term cash commitments in operations are classified as cash equivalents.

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(6) Derecognition of financial assets

The Company derecognizes a financial asset when one of the following conditions is met:

• A. The contractual rights to receive cash flows from the financial asset expire.

• B. The contractual rights to receive cash flows from the financial assets have been transferred and the Company has transferred substantially all risks and rewards of ownership of the financial assets.

• C. The Company neither retains nor transfers substantially all risks and rewards of ownership of the financial asset; however, it has not retained control of the financial asset.

• (7) Investments accounted for using the equity method/ subsidiaries and assoaciates

• A. Subsidiaries are all entities (including structured entities) controlled by the Company. The Company controls an entity when the Company is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.

• B. Inter-company transactions, balances and unrealised gains or losses on transactions between companies within the Company are eliminated. Accounting policies of subsidiaries have been adjusted where necessary to ensure consistency with the policies adopted by the Company.

• C. The Company’s share of its associates’ post-acquisition profits or losses is recognised in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognised in other comprehensive income. When the Company’s share of losses in a subsidiary equals or exceeds its interest in the subsidiary, the Company continues to recognise losses proportionate to its ownership.

• D. Changes in a parent’s ownership interest in a subsidiary that do not result in the parent losing control of the subsidiary (transactions with non-controlling interests) are accounted for as equity transactions, i.e. transactions with owners in their capacity as owners. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognised directly in equity.

• E. When the Company loses control of a subsidiary, the Company remeasures any investment retained in the former subsidiary at its fair value. That fair value is regarded as the fair value on initial recognition of a financial asset or the cost on initial recognition of the associate or joint venture. Any difference between fair value and carrying amount is recognised in profit or loss. All amounts previously recognised in other comprehensive income in relation to the subsidiary are reclassified to profit or loss on the same basis as would be required if the related assets or liabilities were disposed of. That is, when the Company loses control of a subsidiary, all gains or losses previously recognised in other comprehensive income in relation to the subsidiary should be reclassified from equity to profit or loss, if such gains or losses would be reclassified to profit or loss when the related assets or liabilities are disposed of.

• F. Associates are all entities over which the Company has significant influence but no control. In general, it is presumed that the investor has significant influence, if an investor holds, directly or indirectly 20 percent or more of the voting power of the investee. Investments in associates are accounted for using the equity method and are initially recognized at cost.

• G. The Company’s share of its associates’ post-acquisition profits or losses is recognized in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognized in other comprehensive income. When the Company’s share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured receivables, the Company does not recognize further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the associate.

~15~

• H. When changes in an associate’s equity that are not recognized in profit or loss or other comprehensive income of the associate and such changes does not affect the Company’s ownership percentage of the associate, the Company recognizes change in ownership interests in the associate in ‘capital surplus’ in proportion to its ownership.

• I. Unrealized gains on transactions between the Company and its associates are eliminated to the extent of the Company’s interest in the associates. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been adjusted where necessary to ensure consistency with the policies adopted by the Company.

• J. In the case that an associate issues new shares and the Company does not subscribe or acquire new shares proportionately, which results in a change in the Company’s ownership percentage of the associate but maintains significant influence on the associate, then ‘capital surplus’ and ‘investments accounted for under the equity method’ shall be adjusted for the increase or decrease of its share of equity interest. If the above condition causes a decrease in the Company’s ownership percentage of the associate, in addition to the above adjustment, the amounts previously recognised in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately on the same basis as would be required if the relevant assets or liabilities were disposed of.

• K. Upon loss of significant influence over an associate, the Company remeasures any investment retained in the former associate at its fair value. Any difference between fair value and carrying amount is recognised in profit or loss.

• L. When the Company disposes its investment in an associate, if it loses significant influence over this associate, the amounts previously recognized in other comprehensive income in relation to the associate, are reclassified to profit or loss, on the same basis as would be required if the relevant assets or liabilities were disposed of. If it still retains significant influence over this associate, then the amounts previously recognized in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately in accordance with the aforementioned approach.

• M. When the Company disposes its investment in an associate and loses significant influence over this associate, the amounts previously recognised as capital surplus in relation to the associate are transferred to profit or loss. If it retains significant influence over this associate, the amounts previously recognised as capital surplus in relation to the associate are transferred to profit or loss proportionately.

• N. Pursuant to the “Regulations Governing the Preparation of Financial Reports by Securities Issuers,” profit (loss) of the current period and other comprehensive income in the parent company only financial statements shall equal to the amount attributable to owners of the parent in the financial statements prepared with basis for consolidation. Owners’ equity in the parent company only financial statements shall equal to equity attributable to owners of the parent in the financial statements prepared with basis for consolidation.

• (8) Property, plant and equipment

• A. Property, plant and equipment are initially recorded at cost. Borrowing costs incurred during the construction period are capitalized.

• B. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred.

~16~

• C. Land is not depreciated. Other property, plant and equipment apply cost model and are depreciated using the straight-line method to allocate their cost over their estimated useful lives. Each part of an item of property, plant, and equipment with a cost that is significant in relation to the total cost of the item must be depreciated separately.

• D. The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each financial year-end. If expectations for the assets’ residual values and useful lives differ from previous estimates or the patterns of consumption of the assets’ future economic benefits embodied in the assets have changed significantly, any change is accounted for as a change in estimate under IAS 8, ‘Accounting Policies, Changes in Accounting Estimates and Errors’, from the date of the change.

The estimated useful lives of property, plant and equipment are as follows: Office equipment 2 ~ 20 years Leasehold improvements 3 ~ 15 years

• (9) Impairment of non-financial assets

• A. The Company assesses at each balance sheet date the recoverable amounts of those assets where there is an indication that they are impaired. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell or value in use. Except for goodwill, when the circumstances or reasons for recognizing impairment loss for an asset in prior years no longer exist or diminish, the impairment loss is reversed. The increased carrying amount due to reversal should not be more than what the depreciated or amortized historical cost would have been if the impairment had not been recognized.

• B. The recoverable amounts of goodwill and intangible assets that have not yet been available for use are evaluated periodically. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. Impairment loss of goodwill previously recognized in profit or loss shall not be reversed in the following years.

• C. For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the cash-generating units, or groups of cash-generating units, that is/are expected to benefit from the synergies of the business combination. Each unit or group of units to which the goodwill is allocated represents the lowest level within the entity at which the goodwill is monitored for internal management purposes. Goodwill is monitored at the operating segment level.

(10) Borrowings

• Borrowings comprise of long-term and short-term bank borrowings. Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortized cost; any difference between the proceeds and the redemption value is recognized in profit or loss over the period of the borrowings using the effective interest method.

• (11) Derecognition of financial liabilities

A financial liability is derecognised when the obligation specified in the contract is either discharged or cancelled or expires.

• (12) Employee benefits

• A. Short-term employee benefits

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

• B. Pensions

For defined contribution plans, the contributions are recognized as pension expenses when they are due on an accrual basis. Prepaid contributions are recognized as an asset to the extent of a cash refund or a reduction in the future payments.

~17~

  - C. Employees’ compensation and directors’ remuneration

     - Employees’ compensation and directors’ remuneration are recognized as expenses and liabilities, provided that such recognition is required under legal obligation or constructive obligation and those amounts can be reliably estimated. Any difference between the resolved amounts and the subsequently actual distributed amounts is accounted for as changes in estimates.

• (13) Income tax

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

  • B. The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Company and its subsidiaries operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in accordance with applicable tax regulations. It establishes provisions where appropriate based on the amounts expected to be paid to the tax authorities. An additional tax is levied on the unappropriated retained earnings and is recorded as income tax expense in the year when the stockholders resolve to retain the earnings.

  • C. Deferred income tax is recognized, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the parent company only financial statements. However, the deferred income tax is not accounted for if it arises from initial recognition of goodwill or of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred income tax is provided on temporary differences arising on investments in subsidiaries and associates, except where the timing of the reversal of the temporary difference is controlled by the Company and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred income tax is determined using tax rates and laws that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.

  • D. Deferred income tax assets are recognized only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilized. At each balance sheet date, unrecognized and recognized deferred income tax assets are reassessed.

• (14) Share capital

  • A. Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or stock options are shown in equity as a deduction, net of tax, from the proceeds.

  • B. Where the Company repurchases the Company’s equity share capital that has been issued, the consideration paid, including any directly attributable incremental costs (net of income taxes) is deducted from equity attributable to the Company’s equity holders. Where such shares are subsequently reissued, the difference between their book value and any consideration received, net of any directly attributable incremental transaction costs and the related income tax effects, is included in equity attributable to the Company’s equity holders.

• (15) Dividends

  • Dividends are recorded in the Company’s financial statements in the period in which they are resolved by the Company’s Board of Directors. Cash dividends are recorded as liabilities.

• CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF ASSUMPTION UNCERTAINTY

The preparation of these parent company only financial statements requires management to make critical judgements in applying the Company’s accounting policies and make critical assumptions and estimates concerning future events. Assumptions and estimates may differ from the actual results and are

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continually evaluated and adjusted based on historical experience and other factors. Such assumptions and estimates have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year; and the related information is addressed below:

(1) Critical judgments in applying the Company’s accounting policies None.

• (2) Critical accounting estimates and assumptions

Investments accounted for using the equity method-evaluation of inventories

As inventories are stated at the lower of cost and net realizable value, the subsidiaries of the Company must determine the net realizable value of inventories on balance sheet date using judgements and estimates. Due to the rapid technology innovation, the subsidiaries of the Company evaluates the amounts of obsolete inventories or inventories without market selling value on balance sheet date, and writes down the cost of inventories to the net realizable value. Such an evaluation of inventories is principally based on the demand for the products within the specified period in the future. Therefore, there might be material changes to the evaluation.

As of December 31, 2022, the carrying amount of inventories of the subsidiaries of the Company was $4,825,045.

1. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

$4,825,045. TAILS OF SIGNIFICANT ACCOUNTS Cash and cash equivalents
Checking accounts and demand deposits Bonds sold under repurchase agreement	December31,2022 650,933 $ 40,000 690,933 $	December31,2021
		23,752 $ 20,000
		43,752 $

The Company transacts with a variety of financial institutions all with high credit quality to disperse credit risk, so it expects that the probability of counterparty default is remote.

(2) Investments accounted for using the equity method

Investments accounted for using the equity method
Subsidiaries: Epistar Corporation Lextar Electronics Corporation Amengine Corporation Harvestar Investment Corp. Calystar Investment Corp. Precistar Investment Corp. Praistar Investment Corp. Manastar Investment Corp. Unikorn Semiconductor Corporation Associates: Tyntek Corporation GCS Holdings, Inc.	December31,2022 39,769,781 $ 11,152,889 25,747 849,744 409,063 49,004 49,004 981 179,217 52,485,430 594,097 $ 411,447 1,005,544 53,490,974 $	December31,2021
		39,027,656 $ 11,619,154 8,193 676,611 289,866 - - - -
		51,621,480
		634,214 $ 451,710
		1,085,924
		52,707,404 $

A. Subsidiaries

Information on subsidiaries is provided in Note 4(3) of the 2022 consolidated financial statements. B. Associates

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The carrying amount of the Company’s interests in all individually immaterial associates and the Company’s share of the operating results are summarized below:

As of December 31, 2022 and 2021, the carrying amount of the Company’s individually immaterial associates amounted to $1,005,544 and $1,085,924, respectively.

	Year	ended December	Year	ended December
		31, 2022		31, 2021
(Loss) gain for the period from	($	81,684)	$	30,409
continuing operations
Other comprehensive income (loss)		16,565	(	56,881)
Total comprehensive loss	($	65,119)	($	26,472)

• C. The investment gain from equity method investees for the year ended December 31, 2022 and 2021 amounted to $67,110 and $2,191,207, respectively.

• D. The other comprehensive gain(loss) from equity method investees for the years ended December 31, 2022 and 2021 amounted to $169,374 and ($242,893), respectively.

• E. The fair value of the Company’s material associates with quoted market prices is as follows:

December 31, 2022 Tyntek Corporation 395,063 $ GCS Holdings, Inc. 352,092 747,155 $	December31,2021
	674,702 $ 443,275
	1,117,977 $

(3) Property, plant and equipment

At January 1, 2022 Cost Accumulated depreciation and impairment 2022 Opening net book amount at January 1 Additions Transfer Depreciation charge Closing net book amount at December 31 At December 31, 2022 Cost Accumulated depreciation and impairment	Office Leasehold equipment improvements 414 $ 4,678 $ 32) ( 39) ( 382 $ 4,639 $ 382 $ 4,639 $ 468 - - 6,384 91) ( 804) ( 759 $ 10,219 $ 882 $ 11,062 $ 123) ( 843) ( 759 $ 10,219 $

~20~

								Construction in	Construction in
								progress	and
			Office			Leasehold		equipment to
			equipment			improvements		be inspected				Total
At January 6, 2021 (date of establishment)
Cost		$		-		$	-	$	-		$	-
Accumulated depreciation and impairment				-			-		-			-
		$		-		$	-	$	-		$	-
2021
Opening net book amount at January 6		$		-		$	-	$	-		$	-
(date of establishment)
Additions			414				4,678		5,136			10,228
Depreciation charge	(			32)	(		39)		-	(		71)
Closing net book amount at December 31		$	382			$	4,639	$	5,136		$	10,157
At December 31, 2021
Cost		$	414			$	4,678	$	5,136		$	10,228
Accumulated depreciation and impairment	(			32)	(		39)		-	(		71)
		$	382			$	4,639	$	5,136		$	10,157
Short-term borrowings
Type ofborrowings			December	31,	2022		Interestraterange		Collateral
Bank borrowings
Unsecured borrowings			$	100,000			1.86%			None
Type ofborrowings			December	31,	2021		Interestraterange		Collateral
Bank borrowings
Unsecured borrowings			$	150,000			1.13%			None

(4) Short-term borrowings

(5) Pensions

• A. Effective July 1, 2005, the Company and its domestic subsidiaries have established a defined contribution pension plan (the “New Plan”) under the Labor Pension Act (the “Act”), covering all regular employees with R.O.C. nationality. Under the New Plan, the Company and its domestic subsidiaries contribute monthly an amount based on 6% of the employees’ monthly salaries and wages to the employees’ individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment.

• B. The pension costs under the defined contribution pension plans of the Company for the years ended December 31, 2022 and 2021 were $4,001 and $3,444, respectively.

(6) Share capital

• A. As of December 31, 2022, the Company’s authorized capital was $15,000,000, consisting of 1,500,000 thousand shares of ordinary stock (including 50,000 thousand shares reserved for employee stock options), and the paid-in capital was $7,547,840 with a par value of $10 (in dollars) per share. In accordance with Article 31 of Business Mergers and Acquisitions Act, the Company issued new shares in exchange for the stocks of Epistar and Lextrar. The procedure of share exchange was completed on January 6, 2021.

~21~

Movements of the Company’s outstanding ordinary shares are as follows (expressed in thousands of shares):

of shares):
		2022
At January 1		682,125
Issuance of ordinary shares - private placement		70,000
Expiration of restricted employee stock	(	467)
At December 31		751,658
		2021
At January 6 (date of establishment)		-
Issuance of ordinary shares under		678,926
business combination
Proceeds from treasury shares transferred		3,900
to employees
Expiration of restricted employee stock	(	701)
At December 31		682,125

• B. The stockholders at their annual stockholders’ meeting on May 31, 2022 adopted a resolution to raise additional cash through private placement with the effective date set on July 8, 2022, which will be used for capital expenditure of constructing/building a 6-inch wafer plant for Micro LEDs and purchasing the equipment related to epitaxy and LED chips, etc. The resolution issue 70,000 thousand shares of ordinary shares at a price of NT$51.82 per share for a total amount of $3,627,400 through private placement and had been registered. Pursuant to the Securities and Exchange Act of the ROC, the common shares raised through the private placement are subject to certain transfer restrictions and cannot be listed on the stock exchange until three years after they have been issued and have applied for retroactive handling of public issuance procedures. Other than these restrictions, the rights and obligations of the ordinary shares raised through the private placement are the same as other issued common shares.

• C. Treasury shares

• (a) Reason for share reacquisition and movements in the number of the Company’s treasury shares are as follows:

are as follows:
Reason for reacquisition	(Unit: share in thousands/ dollars in thousands) At January 1 Issuance of ordinary shares under business combination Increase Decrease At December31 Bookvalue 1,282 - - 1,282 135,163 $ 1,844 - - 1,844 159,647 At January 6 (date of establishment) Issuance of ordinary shares under business combination Increase Decrease (Note) At December31 Bookvalue 10,365 701 ( 9,784) 1,282 135,163 $ 3,687 - ( 1,843) 1,844 159,647 Year ended December31,2021 Year ended December31,2022
Held by subsidiaries Redemption shares held by objecting shareholders Reason for reacquisition
Held by subsidiaries Redemption shares held by objecting shareholders

Note ： Effect of conversion under joint share conversion agreement.

~22~

• (b) Pursuant to the R.O.C. Securities and Exchange Act, the number of shares bought back as treasury share should not exceed 10% of the number of the Company’s issued and outstanding shares and the amount bought back should not exceed the sum of retained earnings, paid-in capital in excess of par value and realised capital surplus.

• (c) Pursuant to the R.O.C. Securities and Exchange Act, treasury shares should not be pledged as collateral and is not entitled to dividends before it is reissued.

• (d) Pursuant to the rules governing share repurchase by the Company, treasury shares should be reissued to the employees within three years from the reacquisition date and shares not reissued within the three-year period are to be retired. Treasury shares to enhance the Company’s credit rating and the stockholders’ equity should be retired within six months of acquisition.

• D. Information of the Company’s shares held by subsidiaries as follows:

nformation of the Company’s shares held by subsidiaries as follows:
December31,2022 Lighting Investment Corporation 1,282 thousand shares Book value 135,163 $ Fair value 57,386 $ Epistar Corporation 1,844thousand shares Book value 159,647 $ Fair value 82,497 $	December31,2021 1,282 thousand shares
	135,163 $ 98,358 $ 1,844thousand shares
	159,647 $ 141,396 $

(7) Capital surplus

Pursuant to the Company Act, capital surplus, including additional paid-in capital in excess of par and donation, shall be exclusively used to cover accumulated deficit or to issue new stock or cash to shareholders in proportion to their ownership when the Company has no accumulated deficit. However, pursuant to the R.O.C. Securities and Exchange Act, capital surplus arising from paid-in capital in excess of par value on issuance of common stock and donations can be capitalized once a year, provided that the Company has no accumulated deficit and the amount to be capitalized does not exceed 10% of the paid-in capital.

2022

not exceed 10% of the paid-in	capital. 2022
At January 1 Issuance of ordinary shares - private placement Change in net equity of associates and joint ventures accounted for under equity method Difference between consideration and carrying amount of subsidiaries acquired or disposed Changes in ownership interests in subsidiaries accounted for using equity method Expiration of restricted employee stock At December 31	Treasury share Changes in ownership interests in subsidiaries accounted for Sharepremium transactions usingequitymethod 42,894,615 $ 115,823 $ 770,537 $ 2,927,400 - - - - - 7,754 - 195,791) ( 42,848 947) ( 299,546) ( 4,674 - - 45,877,291 $ 114,876 $ 275,200 $	Change in net equity of associates and joint ventures accounted for under equity method
		49,663 $ - 104,634 - - -
		154,297 $

~23~

2021

Sharepremium At January 6 (date of establishment) Issuance of ordinary shares under business combination 42,957,635 $ Change in net equity of associates and joint ventures accounted for under equity method 62,279) ( Difference between consideration and carrying amount of subsidiaries acquired or disposed 7,754) ( Changes in ownership interests in subsidiaries accounted for using equity method - Expiration of restricted employee stock 7,013 Distribution compensation to employee - At December 31 42,894,615 $

Treasury share Changes in ownership interests in subsidiaries accounted for Difference between consideration and carrying amount of subsidiaries acquired Change in net equity of associates and joint ventures accounted for under equity transactions usingequitymethod or disposed method - $ - $ - $ - $ - - - 49,663 - - - - 115,823 574,746 - - - - - - - - 195,791 - 115,823 $ 574,746 $ 195,791 $ 49,663 $

(8) Retained earnings

• A. In accordance with the Company’s Articles of Incorporation, 10% of current year’s earnings, after paying all taxes and dues and covering prior years’ losses, shall be appropriated as legal reserve until the total equals the issued share capital. Special reserve shall be appropriated or reversed when needed. The remaining earnings along with the prior years’ accumulated unappropriated earnings are considered as distributable earnings, and shall be distributed by the Board of Directors. When issuing new shares, the distribution shall be submitted to the resolution of the Shareholders’ Meeting. If it is in cash, it shall be resolved by the Board of Directors. The distribution shall be based on the proportion of shares held by each shareholder.

• B. The Company appropriates earnings based on the factors such as current and future investment environment, capital needs, domestic and overseas competition and capital budget, along with the consideration of shareholders’ interest and capital adequacy. The appropriation of cash dividends shall not be lower than 10% of the total dividend appropriated to shareholders.

• C. Except for covering accumulated deficit or issuing new stocks or cash to shareholders in proportion to their share ownership, the legal reserve shall not be used for any other purpose. The use of legal reserve for the issuance of stocks or cash to shareholders in proportion to their share ownership is permitted, provided that the distribution of the reserve is limited to the portion in excess of 25% of the Company’s paid-in capital.

• D. In accordance with the regulations, the Company shall set aside special reserve from the debit balance on other equity items at the balance sheet date before distributing earnings. When debit balance on other equity items is reversed subsequently, the special reserve is reversed accordingly and could be included in the distributable earnings.

• E. The appropriations of 2022 earnings had been resolved at the Board of Directors on February 23, 2023, and decided not to distribute cash dividends.

~24~

• F. The appropriations of 2021 earnings as resolved by the shareholders at their meeting on May 31, 2022 are as follows:

2022 are as follows:
Legal reserve appropriated Special reserve appropriated Cash dividends distributed		2021
		Amount	Dividends per share (in dollars)
		216,945 $ 290,598 $ 1,365,881 $	2 $

The abovementioned distribution of earnings for the year of 2021 was in agreement with those amounts proposed by the Board of Directors on February 24, 2022. (9) Other equity items

amounts proposed by the Board of Directors on February 24, 2022. Other equity items	f Directors on February	24, 2022.
Currencytranslation Unrealizedgain or loss Total At January 1 406,535) ($ 170,992 $ 235,543) ($ Revaluation - gross - 256,584) ( 256,584) ( Revaluation - tax - 36,134) ( 36,134) ( Difference on carrying amounts of subsidiaries acquired and disposed 3 - 3 Disposal of investments in equity instruments designated at fair value through other comprehensive income - 160,653 160,653 Currency translation –Group 443,043 - 443,043 –Tax on Group 428) ( - 428) ( At December 31 36,083 $ 38,927 $ 75,010 $ 2022 Currencytranslation Unrealizedgain or loss Total At January 6 (date of establishment) - $ - $ - $ Revaluation - gross - 285,303 285,303 Revaluation - tax - 123,285) ( 123,285) ( Difference on carrying amounts of subsidiaries acquired and disposed 1,553) ( - 1,553) ( Disposal of investments in equity instruments designated at fair value through other comprehensive income - 8,974 8,974 Currency translation –Group 210,366) ( - 210,366) ( –Tax on Group 194,616) ( - 194,616) ( At December 31 406,535) ($ 170,992 $ 235,543) ($ 2021		2022
			Total

~25~

(10) Operating revenue

Operating revenue
	Year	ended December	Year	ended December
		31, 2022		31,2021
Share of gain of associates and joint	$	67,110	$	2,191,207
ventures accounted for under equity method
Dividend revenue		-		6,701
Other operating revenue		177,619		219,710
	$	244,729	$	2,417,618

(11) Expenses by nature

Expenses by nature ventures accounted for under equity method Dividend revenue Other operating revenue	- 177,619 244,729 $		6,701 219,710 2,417,618 $
Employee benefit expenses Employee benefit expenses Depreciation charges on property, plant and equipment Wages and salaries Labor and health insurance expenses Pension costs Other personnel expenses	Year ended December 31,2022 147,653 $ 895 $ Year ended December 31, 2022		Year ended December 31,2021
			199,747 $ 71 $ Year ended December 31,2021
	131,605 $ 8,323 4,001 3,724 147,653 $		187,102 $ 6,275 3,444 2,926 199,747 $

(12) Employee benefit expenses

• A. According to the Articles of Incorporation of the Company, the Company shall distribute employees’ compensation and directors’ remuneration based on 0.1%~15% and no higher than 2% of the distributable profit of the current period, respectively. If the Company has accumulated deficit, earnings should be reserved to cover losses.

• B. For the years ended December 31, 2022 and 2021, employees’ compensation was accrued at $3,952 and $244,739, respectively. For the years ended December 31, 2022 and 2021, the directors’ remuneration was accrued at $790 and $24,474, respectively.

• C. On February 23, 2023, the board of directors of the company approved the distribution of directors’ remuneration as $0 in 2022, and the difference of $790 between the directors’ remuneration account and the proposed distribution will be listed as profit and loss in 2023.

• D. Information about employees’ compensation and directors’ remuneration of the Company as resolved by the Board of Directors will be posted in the “Market Observation Post System” at the website of the Taiwan Stock Exchange.

(13) Income tax

• A. Income tax expense

• (a) Components of income tax expense :

website of the Taiwan Stock Exchange. e tax ome tax expense Components of income tax expense :
Current tax on profits for the period Prior year income tax underestimation Tax on undistributed surplus earnings Income tax expense	December31,2022 16,394 $ 5,079 14,801 36,274 $	December31,2021
		- $ - -
		- $

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

~26~

==> picture [469 x 372] intentionally omitted <==

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

Year ended December Year ended December
31, 2022 31, 2021
Change in fair value of financial assets $ 36,629 $ 123,285
at fair value through other
comprehensive income
Currency translation differences 168 191,996
Share of other comprehensive income of 2,620
( 235)
associates
Remeasurement of defined benefit
obligations 3,855 ( 293)
Total $ 40,417 $ 317,608
B. Reconciliation between income tax expense and accounting profit
Year ended December Year ended December
31, 2022 31, 2021
Tax calculated based on profit before tax $ 14,860 $ 435,670
and statutory tax rate
Expenses disallowed & tax exempt income by 14,958 ( 1,340)
tax regulation
Temporary differences not recognised as ( 13,424) ( 438,239)
deferred tax assets
Effect from taxable loss - 3,909
-
Prior year income tax underestimation 5,079
Tax on undistributed surplus earnings 14,801 -
Income tax expense $ 36,274 $ -
----- End of picture text -----

B. Reconciliation between income tax expense and accounting profit

C. Expiration dates of unused tax losses and amounts of unrecognised deferred tax assets are as follows ： None.

D. The amounts of deductible temporary difference that are not recognised as deferred tax assets are as follows:

as follows:
Deductible temporary differences	December31,2022 67,116 $	December31,2021
		2,191,195 $

E. The Company was established on January 6, 2021, and had filed profit-seeking enterprise income tax in June 2022. Currently, the Company’s income tax returns have not been assessed and approved by the Tax Authority.

~27~

(14) Earnings per share

(14)	Earnings per share
(15)	Supplemental cash flow information Investing activities with partial cash payments Weighted average number of outstanding ordinary shares Earnings per share Amount after tax (share in thousands) (in dollars) Basic earnings per share Profit for the period 38,024 $ 715,603 0.05 $ Diluted earnings per share Profit for the period 38,024 $ 715,603 Assumed conversion of all dilutive potential ordinary shares Employees' compensation - 496 Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares 38,024 $ 716,099 0.05 $ Year ended December31,2022 Weighted average number of outstanding ordinary shares Earnings per share Amount after tax (share in thousands) (in dollars) Basic earnings per share Profit for the period 2,178,349 $ 678,590 3.21 $ Diluted earnings per share Profit for the period 2,178,349 $ 678,590 Assumed conversion of all dilutive potential ordinary shares Employees' compensation - 3,191 Employee restricted shares - 91 Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares 2,178,349 $ 681,872 3.20 $ Period fromJanuary 6to December31,2021 Year ended December 31,2022 Year ended December 31,2021 Purchase of property, plant and equipment 1,716 $ 10,228 $ Add: Opening balance of payable on equipment 10,001 - Less: Ending balance of payable on equipment 1,733) ( 10,001) ( Cash paid during the period 9,984 $ 227 $	Weighted average number of outstanding ordinary shares Earnings per share Amount after tax (share in thousands) (in dollars) 38,024 $ 715,603 0.05 $ 38,024 $ 715,603 - 496 38,024 $ 716,099 0.05 $ Year ended December31,2022 Period fromJanuary 6to December31,2021
					Earnings per share (in dollars)
					3.21 $
					3.20 $
			1,716 $ 10,001 1,733) ( 9,984 $	10,228 $ - 10,001) ( 227 $

~28~

(16) Changes in liabilities from financing activities

	(16) Changes in liabilities from financing activities	(16) Changes in liabilities from financing activities	s	s	s
7.	RELATED PARTY TRANSACTIONS (1) Names of related parties and relationship (2) Significant related party transactions and balances A. Operating revenue: B. Receivables from related parties: Short-term borrowings Guarantee deposits received Liabilities from financing activities- gross At January 1 150,000 $ 10 $ 150,010 $ Changes in cash flow from financing activities 50,000) ( 2) ( 50,002) ( At December 31 100,000 $ 8 $ 100,008 $ 2022 Short-term borrowings Guarantee deposits received Liabilities from financing activities- gross At January 6 (date of establishment) - $ - $ - $ Changes in cash flow from financing activities 150,000 10 150,010 At December 31 150,000 $ 10 $ 150,010 $ 2021 Names of related parties Relationship with theCompany Epistar Corporation Subsidiary of the Company Lextar Electronics Corporation Subsidiary of the Company Amengine Corporation Subsidiary of the Company Unikorn Semiconductor Corporation Subsidiary of the Company Yenrich Technology Corporation Subsidiary of the Company Period from January 6 toDecember31,2021 Epistar Corporation 128,117 $ 151,479 $ Lextar Electronics Corporation 47,515 68,128 Other subsidiaries 1,987 - Total 177,619 $ 219,607 $ Year ended December 31,2022 December31,2022 December31,2021 Other receivables: Epistar Corporation 37,474 $ 39,534 $ Lextar Electronics Corporation 13,254 20,030 Unikorn Semiconductor Corporation 1,856 - Other subsidiaries 154 - 52,738 $ 59,564 $					2022
			Short-term borrowings			Guarantee deposits received
			150,000 $ 50,000) ( 100,000 $ Short-term borrowings
			$ $
	(1) (2)
		Significant related party transactions and balances A. Operating revenue: B. Receivables from related parties: Epistar Corporation Lextar Electronics Corporation Amengine Corporation Unikorn Semiconductor Corporation Yenrich Technology Corporation Epistar Corporation Lextar Electronics Corporation Other subsidiaries Total Other receivables: Epistar Corporation Lextar Electronics Corporation Unikorn Semiconductor Corporation Other subsidiaries
							151,479 $ 68,128 -
							219,607 $
							December31,2021
							39,534 $ 20,030 - -
							59,564 $

~29~

C. Payables from related parties:

Other payables: Epistar Corporation Lextar Electronics Corporation	December31,2022 3,252 $ 18 3,270 $	December31,2021 6,183 $ 542 6,725 $

December31,2022 Other payables: Epistar Corporation 3,252 $ Lextar Electronics Corporation 18 3,270 $	December31,2021 6,183 $ 542 6,725 $
D. Loans to /from related parties: (a) Loans to related parties: (i) Outstanding balance: (ii) Interest income The loans to associates are repayable monthly carry interest at 1.7% ended December 31, 2022. December31,2022 Unikorn Semiconductor Corporation 350,000 $ Year ended December 31, 2022 Unikorn Semiconductor Corporation 1,705 $	December31,2021 - $ Year ended December 31, 2021
	per annum for the year - $

• (b) Loans from related parties:

• (i) Outstanding balance:

ended December 31, 2022. Loans from related parties: (i) Outstanding balance:
(ii) Interest expense Lextar Electronics Corporation Epistar Corporation Lextar Electronics Corporation	December31,2022 - $ Year ended December 31,2022 - $ 124 124 $	December31,2021
		40,000 $ Year ended December 31,2021
		875 $ 283 1,158 $

The loans from associates are repayable monthly carry interest at 1.7% and 1.25%~1.7% per annum for the years ended December 31, 2022 and 2021, respectively. (3) Key management compensation

	(3) Key management compensation
8. 9.	PLEDGED ASSETS None. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACT COMMITMENTS Capital expenditure contracted for at the balance sheet date but not yet incurred is as follows: Year ended December 31,2022 Year ended December 31,2021 Salaries and other short-term employee benefits 83,390 $ 38,553 $ Termination benefits 324 285 Total 83,714 $ 38,838 $	Year ended December 31,2022	Year ended December 31,2021
	Property, plant and equipment	December31,2022 - $	December31,2021 1,359 $

				December	31,	2022			December	31,	2021
Property,	plant	and equipment	$				-	$			1,359

~30~

10. SIGNIFICANT DISASTER LOSS

• None.

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

• None.

12. OTHERS

(1) Capital risk management

The Company’s capital management policy is established taking into account the industry characteristics, the Company’s future development and changes in external environments. The Company plans the working capital, capital expenditures, investments and dividends required for the future based on the capital management policy, makes financial analysis, and examines its capital structure periodically and makes appropriate adjustments to ensure that every company within the Company may grow and operate indefinitely.

(2) Financial instruments

• A. Financial instruments by category

==> picture [463 x 197] intentionally omitted <==

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

December 31, 2022 December 31, 2021
Financial assets
Financial assets at amortised cost
Cash and cash equivalents $ 690,933 $ 43,752
Other receivables (including related parties) 402,797 59,574
Guarantee deposits paid 25,408 408
$ 1,119,138 $ 103,734
Financial liabilities
Financial liabilities at amortised cost
Short-term borrowings $ 100,000 $ 150,000
Other payables (including related parties) 100,492 350,751
Guarantee deposits received 8 10
$ 200,500 $ 500,761
----- End of picture text -----

B. Financial risk management policies

• (a) The Company’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk, interest rate risk and price risk), credit risk and liquidity risk.

• (b) The Company’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Company’s financial position and financial performance.

• C. Significant financial risks and degrees of financial risks

• (a) Market risk

Foreign exchange risk

• i. The Company operates internationally and is exposed to exchange rate risk arising from the transactions of the Company and its subsidiaries used in various functional currency, primarily with respect to the USD and RMB. Exchange rate risk arises from future commercial transactions and recognised assets and liabilities.

• ii. The company are required to hedge their entire foreign exchange risk exposure with the Company treasury.

• iii. The Company’s businesses involve some non-functional currency operations (the functional currency of the Company is NTD. The information on assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations is as follows:

~31~

			December31,2022	December31,2022
	Foreign currency
		amount			Book value
		(inthousands)	Exchangerate	(in	thousands ofNTD)
(Foreign currency:
functional currency)
Financial assets
Monetary items
USD:NTD	$	38	30.71	$	1,181
RMB:NTD		19	4.41		82
Non-monetary items
USD:NTD		11,000	30.71		337,810
Financial liabilities
Non-monetary items
USD:NTD	$	15	30.71	$	471
			December 31, 2021
	Foreign currency
		amount			Book value
		(inthousands)	Exchangerate	(in	thousands ofNTD)
(Foreign currency:
functional currency)
Financial assets
Monetary items
USD:NTD	$	100	27.68	$	2,758
Non-monetary items
USD:NTD		11,000	27.68		304,480
iv. Please refer to the following table for the details of unrealized exchange gain (loss) arising
from significant foreign exchange variation on the monetary items				held by the Company.
		Year	endedDecember	31,2022
		Unrealized exchange gain			(loss)
	Foreign currency
		amount			Book value
		(inthousands)	Exchangerate	(in	thousands ofNTD)
(Foreign currency:
functional currency)
Financial assets
Monetary items
RMB:NTD	$	-	4.41	($	2)
Financial liabilities
Monetary items
USD:NTD	$	-	30.71	($	4)

~32~

Period from January 6 to December 31, 2021 Unrealized exchange gain (loss) Foreign currency amount Book value (in thousands) Exchange rate (in thousands of NTD) (Foreign currency: functional currency) Financial assets Monetary items USD:NTD $ - 27.68 ($ 12)

• v. Analysis of foreign currency market risk arising from significant foreign exchange variation:

ariation:
(Foreign currency: functional currency) Financial assets Monetary items USD:NTD RMB:NTD Non-monetary items USD:NTD Financial liabilities Non-monetary items USD:NTD (Foreign currency: functional currency) Financial assets Monetary items USD:NTD Non-monetary items USD:NTD	Year
	Degree ofvariation 1% 1%	Effect on profit or loss
		28 $ -	- $ 3,045

Cash flow and interest rate risk

i. The Company’s interest rate risk arises from bank deposits and borrowings. Borrowings issued at variable rates expose the Company to cash flow interest rate risk.

~33~

• ii. Based on the simulations performed on sensitivity analysis for interest rate risk, the maximum impact on post-tax profit of a 0.1% shift would be increased/decreased of $846 and $150 for the year ended December 31, 2022 and 2021. The simulation is done on a quarterly basis to ensure that the potential maximum loss is within the limit set by the management.

• (b) Liquidity risk

• i. Cash flow forecasting is performed in the operating entities of the Company and aggregated by Company treasury. Company treasury monitors rolling forecasts of the Company’s liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times so that the Company does not breach borrowing limits or covenants on any of its borrowing facilities. Such forecasting takes into consideration the Company’s debt financing plans, covenant compliance, compliance with internal balance sheet ratio targets and external regulatory or legal requirements.

• ii. Surplus cash are invested in interest bearing current accounts, time deposits, money market deposits and marketable securities, with appropriate maturities or sufficient liquidity to provide sufficient headroom and meet the above-mentioned forecasts. As of December 31, 2022 and 2021, the Company held money market position of $690,933 and $43,752 and those are expected to readily generate cash inflows for managing liquidity risk.

• iii. The Company has the following undrawn borrowing facilities: December 31, 2022 ： $6,640,000.

• December 31, 2021 ： None.

• iv. The table below shows analysis of the Company’s non-derivative financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows.

undiscounted cash flows.
Non-derivative financial liabilities: December 31, 2022 Short-term borrowings Other payable (including related parties) Other financial liabilities Non-derivative financial liabilities: December 31, 2021 Short-term borrowings Other payable (including related parties) Other financial liabilities	Less than 1year 100,000 $ 100,492 8 Less than 1year 150,000 $ 350,751 -	Between 1 and 5years - $ - - Between 1 and 5 years - $ - 10	Between 5 and 7years - $ - - Between 5 and 7years - $ - -	Over 7years
				- $ - - Over 7years
				- $ - -

The Company does not expect the timing of the estimated cash outflows through the maturity date analysis will be significantly earlier, or expect the actual cash flow amount will be significantly different.

(3) Fair value information

• A. The different levels that the inputs to valuation techniques are used to measure fair value of financial and non-financial instruments have been defined as follows:

• Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. A market is regarded as active where a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. The fair value of the Company’s investment in listed stocks and beneficiary certificates is included in Level 1.

~34~

  - Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. The fair value of the Company’s investment in convertible bonds and most derivative instruments is included in Level 2.

  - Level 3: Unobservable inputs for the asset or liability. The fair value of the Company’s investment in equity investment without active market is included in Level 3.

• ’

• (4) Impact of COVID 19 on the Company s business operations.

• Except for actively following the pandemic prevention policies of each local government, the Company protected employees with high standard prevention measures and encouraged employees to get vaccinated. The Company enhanced the manpower and the material management in response to this situation, and it did not significantly affect the Company's product sales. The Company will continuously monitor the development of the pandemic and timely adjust response strategies and coordinate with other resources to ensure that the daily operation will not be affected.

13. SUPPLEMENTARY DISCLOSURES

• (1) Significant transactions information

• A. Loans to others: Please refer to table 1.

• B. Provision of endorsements and guarantees to others: Please refer to table 2.

• C. Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures): Please refer to table 3.

• D. Acquisition or sale of the same security with the accumulated cost exceeding NT $300 million or 20% paid-in capital or more: Please refer to table 4.

• E. Acquisition of real estate reaching NT$300 million or 20% of paid-in capital or more: Please refer to table 5.

• F. Disposal of real estate reaching NT$300 million or 20% of paid-in capital or more: Please refer to table 6.

• G. Purchases or sales of goods from or to related parties reaching NT$100 million or 20% of paidin capital or more: Please refer to table 7.

• H. Receivables from related parties reaching NT$100 million or 20% of paid-in capital or more: Please refer to table 8.

• I. Trading in derivative instruments undertaken during the reporting periods: None.

• J. Significant inter-company transactions during the reporting periods: Please refer to table 9.

• (2) Information on investees

• Names, locations and other information of investee companies (not including investees in Mainland China) ： Please refer to table 10.

• (3) Information on investments in Mainland China

• A. Basic information: Please refer to table 11.

• B. Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland Area: Please refer to table 12.

(4) Major shareholders information

• Major shareholders information: Please refer to table 13.

14. SEGMENT INFORMATION

None.

~35~

ENNOSTAR INC. Loans to others Year ended December 31, 2022

Table 1

Expressed in thousands of NTD (Except as otherwise indicated)

No.	Creditor	Borrower	General ledger account	Is a related party	Maximum outstanding balance during the year ended 31-Dec-22	Balance at 31-Dec-22	Actual amount drawn down	Interest rate	Nature of loan	Amount of transactions with the borrower	Reason for short-term financing	Allowance for doubtful accounts	Collateral	Collateral	Limit on loans granted to a singleparty	Ceiling on total loansgranted	Footnote
													Item	Value
0 1 1 2 2 3 3 4	ENNOSTAR Inc. Epistar Corporation Epistar Corporation Epicrystal (Changzhou) Ltd. Epicrystal (Changzhou) Ltd. EPISTAR JV HOLDING (BVI) CO., LTD. EPISTAR JV HOLDING (BVI) CO., LTD. Lighting Investment Ltd.	Unikorn Semiconductor Corporation Unikorn Semiconductor Corporation ENNOSTAR Inc. LEADSTAR Micro-Crystal Display Corporation (JiangSu) Ltd. Jiangsu Canyang Optoelectronics Ltd. Episky Corporation (Xiamen) Ltd. Epistar Corporation EPISTAR JV HOLDING (BVI) CO., LTD.	Other receivables- related parties Other receivables- related parties Other receivables- related parties Other receivables- related parties Other receivables- related parties Other receivables- related parties Other receivables- related parties Other receivables- related parties	Y Y Y Y Y Y Y Y	500,000 $ 300,000 1,000,000 218,350 360,480 70,294 547,655 209,398	500,000 $ - - - 352,640 68,765 522,070 199,615	350,000 $ - - - - 68,765 522,070 184,260	1.70% 0.00% 0.00% 0.00% 3.75% 2.86% 3.11%~ 3.93% 3.59%	Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing	- $ - - - - - - -	Working capital Working capital Working capital Working capital Working capital Working capital Working capital Working capital	- $ - - - - - - -	Promissory Note None None None None Promissory Note Promissory Note Promissory Note	500,000 $ - - - - 68,765 522,070 199,615	5,440,427 $ 3,993,548 3,993,548 926,812 926,812 3,931,983 3,931,983 295,722	16,321,281 $ 11,980,644 11,980,644 1,390,218 1,390,218 3,931,983 3,931,983 295,722	Note 1 Note 2 Note 2 Note 3 Note 3 Note 4 Note 4 Note 5

Table 1-1

No.	Creditor	Borrower	General ledger account	Is a related party	Maximum outstanding balance during the year ended 31-Dec-22	Balance at 31-Dec-22	Actual amount drawn down	Interest rate	Nature of loan	Amount of transactions with the borrower	Reason for short-term financing	Allowance for doubtful accounts	Collateral	Collateral	Limit on loans granted to a singleparty	Ceiling on total loansgranted	Footnote
													Item	Value
5 6 6 6 7 8	Luxlite (HK) Corporation Limited Lextar Electronics Corporation Lextar Electronics Corporation Lextar Electronics Corporation Lextar Electronics (Suzhou) Corp. Lextar (Singapore) Pte. Ltd.	EPISTAR JV HOLDING (BVI) CO., LTD. ENNOSTAR Inc. Yenrich Technology Corporation Unikorn Semiconductor Corporation Lextar Electronics (Chuzhou) Corp. Lextar Electronics (Chuzhou) Corp.	Other receivables- related parties Other receivables- related parties Other receivables- related parties Other receivables- related parties Other receivables- related parties Other receivables- related parties	Y Y Y Y Y Y	144,968 $ 800,000 500,000 500,000 540,720 132,638	138,195 $ - 250,000 500,000 - -	138,195 $ - - 350,000 - -	3.93% 0.00% 1.41% 1.41% 0.00% 0.00%	Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing	- $ - - - - -	Working capital Working capital Working capital Working capital Working capital Working capital	- $ - - - - -	Promissory Note None None Promissory Note None None	138,195 $ - - 500,000 - -	280,138 $ 977,255 977,255 977,255 977,255 977,255	280,138 $ 3,909,020 3,909,020 3,909,020 2,894,644 2,003,251	Note 6 Note 7 Note 7 Note 7 Note 8 Note 9

Note 1: In accordance with ENNOSTAR Inc.’s Procedures for Provision of Loans: the limit on loans granted to a single party is 10% of its net equity, and the ceiling on total loans granted is 30% of its net equity. Note 2: In accordance with Epistar Corporation’s Procedures for Provision of Loans: the limit on loans granted to a single party is 10% of its net equity, and the ceiling on total loans granted is 30% of its net equity. Note 3: In accordance with Epicrystal (Changzhou) Ltd. Procedures for Provision of Loans: the limit on loans granted to a single party is 20% of its net equity, and the ceiling on total loans granted is 30% of its net equity. Note 4: Limit on loans granted by the subsidiary of Epistar, Epistar JV, limit on total loans is 40% of the Company’s net asset, and to a single party is 40% of the Epistar JV's net asset. Note 5: Limit on loans granted by the subsidiary of Epistar, Lighting Investment, limit on total loans is 40% of the Company’s net asset, and to a single party is 40% of the Epistar JV's net asset. Note 6: As the borrower of the subsidiary of Epistar, Luxlite (HK), was a fellow subsidiary that is 100% controlled by the parent company located ouside Taiwan,

its ceiling on total loans granted and limit on loans granted to a single party are the net asset of the company.

Note 7: In accordance with Lextar Electronics Corporation Procedures for Provision of Loans: the limit on loans granted to a single party is 10% of its net equity, and the ceiling on total loans granted is 40% of its net

equity.The total amount for fund-lending between the subsidiaries whose voting shares are 100% owned, directly and indirectly, by the Company will not be subject to the limit of 40% of the net worth of the lending subsidiary. However, these subsidiaries shall still prescribe limits on the aggregate amount of such loans and on the amount of such loans permitted to a single borrower, and shall specify limits on the durations of such loans.

Note 8: In accordance with Lextar Electronics (Suzhou) Corp.’s Procedures for Provision of Loans: the ceiling on total loans granted is 80% of its net equity and 40% of the net equity of Lextar Electronics Corporation, and the limit on loans granted to a single party is 80% of its net equity and 10% of the net equity of Lextar Electronics Corporation.

Note 9: In accordance with Lextar (Singapore) Pte. Ltd.’s Procedures for Provision of Loans: the ceiling on total loans granted is 80% of its net equity and 40% of the net equity of Lextar Electronics Corporation, and the limit on loans granted to a single party is 80% of its net equity and 10% of the net equity of Lextar Electronics Corporation.

Table 1-2

ENNOSTAR INC. Provision of endorsements and guarantees to others Year ended December 31, 2022

Table 2

Expressed in thousands of NTD (Except as otherwise indicated)

Party being endorsed/guaranteed

Number （Note 1）	Endorser/ guarantor	Companyname	Relationship with the endorser/ guarantor (Note 2)	Limit on endorsements/ guarantees provided for a single party (Note3)	Maximum outstanding endorsement/ guarantee amount as of December 31, 2022	Outstanding endorsement/ guarantee amount at December 31, 2022	Actual amount drawn down	Amount of endorsements /guarantees secured with collateral	Ratio of accumulated endorsement/ guarantee amount to net asset value of the endorser/ guarantor company	Ceiling on total amount of endorsements/ guarantees provided (Note3)	Provision of endorsements /guarantees by parent company to subsidiary	Provision of endorsements/ guarantees by subsidiary to parent company	Provision of endorsements/ guarantees to the party in MainlandChina	Footnote
1 1 1 1 2	Epistar Corporation Epistar Corporation Epistar Corporation Epistar Corporation Episky Corporation (Xiamen) Ltd.	Episky Corporation (Xiamen) Ltd. Jiangsu Canyang Optoelectronics Ltd. Unikorn Semiconductor Corporation ENNOSTAR Inc. Shenzhen Epikylin Optoelectronics Co.,Ltd	2 2 2 3 2	3,993,548 $ 3,993,548 3,993,548 3,993,548 572,999	1,008,900 $ 243,480 1,150,000 3,250,000 443,900	368,520 $ - 300,000 3,250,000 -	- $ - 300,000 - -	- $ - - - -	0.92 - 0.75 8.14 -	7,987,096 $ 7,987,096 7,987,096 7,987,096 916,799	N N N N N	N N N Y N	Y Y N N Y

Note 1: The numbers filled in for the endorsements/guarantees provided by the Company or subsidiaries are as follows:

• (1) The Company is ‘0’.

• (2) The subsidiaries are numbered in order starting from ‘1’.

Note 2: Relationship between the endorser/guarantor and the party being endorsed/guaranteed is classified into the following seven categories; fill in the number of category each case belongs to: (1) Having business relationship.

(2) The endorser/guarantor parent company owns directly or indirectly more than 50% voting shares of the endorsed/guaranteed subsidiary.

(3) The endorser/guarantor parent company and its subsidiaries jointly own directly or indirectly more than 50% voting shares of the endorsed/guaranteed company.

(4) The endorsed/guaranteed parent company directly or indirectly owns more than 90% voting shares of the endorser/guarantor subsidiary.

(5) Mutual guarantee of the trade as required by the construction contract.

• (6) Due to joint venture, each shareholder provides endorsements/guarantees to the endorsed/guaranteed company in proportion to its ownership.

(7) Companies in the same industry provide among themselves joint and several security for a performance guarantee of a sales contract for pre-construction homes pursuant to the Consumer Protection Act for each other.

Table 2-1

Note3: (1) In accordance with the Epistar’s Procedures for Provision of endorsements and guarantees to others: the ceiling on total endorsements/guarantees is 20% of the Company’s net assets, and the limit on endorsements/guarantees to a single party is 10% of its net assets.

• (2) In accordance with the Episky (Xiamen) ’s Procedures for Provision of endorsements and guarantees to others: the ceiling on total endorsements/guarantees is 40% of the Company’s net assets, and the limit on endorsements/guarantees to a single party is 25% of its net assets.

Table 2-1

ENNOSTAR INC.

Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures) December 31, 2022

Table 3

Expressed in thousands of NTD (Except as otherwise indicated)

Securities held by	Marketable securities	Relationship with the securities issuer	General ledger account		As of December 31,2022	As of December 31,2022		Footnote
				Number of shares	Bookvalue	Ownership (%)	Fairvalue
Harvestar Investment Corp. Epistar Corporation Epistar Corporation Epistar Corporation Epistar Corporation Epistar Corporation Epistar Corporation Epistar Corporation	Amengine Corporation (Preferred stock) E&E Japan Co.Ltd. (Stock) NATEC CORPORATION (Stock) Esleds Co.,Ltd. (Stock) Lynk Labs,Inc. (Stock) Advanced Photoelectronic Technology Limited (Stock) Chi Lin Optoelectronics Co., Ltd. (Stock) Dominant Opto Technologies Sdn. Bhd. (Stock)	Controlled by the same entity None None None None None None None	Non-current investments in equity instruments at fair value through other comprehensive income Non-current investments in equity instruments at fair value through other comprehensive income Non-current investments in equity instruments at fair value through other comprehensive income Non-current investments in equity instruments at fair value through other comprehensive income Non-current investments in equity instruments at fair value through other comprehensive income Non-current investments in equity instruments at fair value through other comprehensive income Non-current financial assets at fair value through profit or loss Non-current investments in equity instruments at fair value through other comprehensive income	500,000 140 120,000 1,000 92,523 1,339,235 2,868,402 35,000,000	2,500 $ 2,143 1,748 148 - 174,310 66,948 583,735	- 17.07 7.50 10.00 7.39 13.68 12.57 10.00	2,500 $ 2,143 1,748 148 - 174,310 66,948 583,735

Table 3-1

As of December 31, 2022

Securities held by	Marketable securities	Relationship with the securities issuer	General ledger account	Number of shares	Bookvalue	Ownership (%)	Fairvalue	Footnote
Epistar Corporation Epistar Corporation Epistar Corporation Epistar Corporation Epistar Corporation Epistar Corporation Epistar Corporation Epistar Corporation Epistar Corporation	Crystalwise Technology Inc. (Stock) XENIO CORPORATION (stock) Edison Opto Corp. (Stock) PlayNitride Inc. (Stock) OSTENDO TECHNOLOGIES,INC. (Stock) Nan Ya Photonics Incorporation (Stock) Tekcore co., Ltd. (Stock) ENNOSTAR Inc. (Stock) PHECDA TECHNOLOGY CO., LTD.	None None None None None None None Parent company None	Non-current investments in equity instruments at fair value through other comprehensive income Non-current financial assets at fair value through profit or loss Non-current investments in equity instruments at fair value through other comprehensive income Non-current investments in equity instruments at fair value through other comprehensive income Non-current financial assets at fair value through profit or loss Non-current investments in equity instruments at fair value through other comprehensive income Non-current investments in equity instruments at fair value through other comprehensive income Non-current investments in equity instruments at fair value through other comprehensive income Non-current investments in equity instruments at fair value through other comprehensive income	1,330,951 7,878 6,042,808 9,137,338 67,500 9,173,000 6,009,183 1,843,500 600,000	10,967 $ - 94,570 637,055 - 213,364 75,716 82,497 -	3.03 0.06 4.47 8.53 4.50 19.90 11.64 0.24 2.11	10,967 $ - 94,570 637,055 - 213,364 75,716 82,497 -	Note1

Table 3-2

Securities held by	Marketable securities	Relationship with the securities issuer	General ledger account		As of December 31,2022	As of December 31,2022		Footnote
				Number of shares	Bookvalue	Ownership (%)	Fairvalue
Epistar Corporation Epistar Corporation Epistar JV Holding (BVI) Co.,Ltd. Episky Corporation(Xiamen) Ltd. Episky Corporation(Xiamen) Ltd. Episky Corporation(Xiamen) Ltd. Lighting Investment Corporation Lighting Investment Corporation Lighting Investment Corporation	ELIT FINE CERAMICS CO., LTD. Nanocrystal Technology Inc. KAISTAR Lighting (Xiamen) Co., Ltd. (Stock) China Firstar Optoelectronic Materials Co., Ltd. (Stock) APT Electronics Co., Ltd.(Stock) China Crystal Technologies Co.,Ltd.(Stock) Oree Advanced Illumination Solutions, Inc. (Stock) Lustrous Technology Ltd. (Stock) TERA XTAL TECHNOLOGY CORPORATION (Stock)	None None None None None None None None None	Non-current financial assets at fair value through profit or loss Non-current financial assets at fair value through profit or loss Non-current investments in equity instruments at fair value through other comprehensive income Non-current investments in equity instruments at fair value through other comprehensive income Non-current investments in equity instruments at fair value through other comprehensive income Non-current investments in equity instruments at fair value through other comprehensive income Non-current financial assets at fair value through profit or loss Non-current financial assets at fair value through profit or loss Non-current financial assets at fair value through profit or loss	2,200,000 6,000,000 cash USD51,060,000 cash RMB7,500,000 4,678,240 8,064,516 79,407 266,892 795,000	- $ - 2,018,014 15,178 41,243 451 - - -	4.68 11.11 18.77 15.00 1.14 4.08 5.00 8.99 0.42	- $ - 2,018,014 15,178 41,243 451 - - -

Table 3-3

As of December 31, 2022

Securities held by	Marketable securities	Relationship with the securities issuer	General ledger account	Number of shares	Bookvalue	Ownership (%)	Fairvalue	Footnote
Lighting Investment Corporation Lighting Investment Corporation Lighting Investment Corporation Lighting Investment Corporation Lighting Investment Corporation Lighting Investment Corporation Lighting Investment Corporation Lighting Investment Corporation Lighting Investment Corporation	XENIO CORPORATION (Stock) FormoLight Technologies, Inc. (Stock) Advanced Photoelectronic Technology Limited (Stock) Edison Opto Corp. (Stock) Rigidtech Microelectronics Cops. (Stock) Ledimond Opto Corporation (Stock) De-an Venture Capoital Co., Ltd. (Stock) iReach Corporation (Stock) Edison Opto Corp. (Stock)	None None None None None None None Investments accounted for under equity method of Epistar Corporation None	Non-current financial assets at fair value through profit or loss Non-current investments in equity instruments at fair value through other comprehensive income Non-current investments in equity instruments at fair value through other comprehensive income Non-current investments in equity instruments at fair value through other comprehensive income Non-current investments in equity instruments at fair value through other comprehensive income Non-current investments in equity instruments at fair value through other comprehensive income Non-current investments in equity instruments at fair value through other comprehensive income Non-current investments in equity instruments at fair value through other comprehensive income Current financial assets at fair value through profit or loss	16,462 2,038,230 562,018 11,257,964 1,550,253 1,100,000 2,000,000 370,000 6,153,424	- $ 7,598 73,150 176,187 11,110 6,959 19,512 1,891 96,301	0.13 10.00 5.74 8.32 2.17 16.92 10.77 1.70 4.55	- $ 7,598 73,150 176,187 11,110 6,959 19,512 1,891 96,301

Table 3-4

As of December 31, 2022

Securities held by	Marketable securities	Relationship with the securities issuer	General ledger account	Number of shares	Bookvalue	Ownership (%)	Fairvalue	Footnote
Lighting Investment Corporation Lighting Investment Corporation Lighting Investment Ltd. Lighting Investment Ltd. Lighting Investment Ltd. Lighting Investment Ltd. HUGA Holding (SAMOA) Ltd. HUGA Holding (SAMOA) Ltd. Jiangsu Canyang Optoelectronics Ltd	ENNOSTAR Inc. (Stock) Taishin 1699 Money Market Fund (Beneficiary certificates) Verticle Inc. (Stock) Achrolux Inc. (Stock) PlayNitride Inc. (Stock) Advanced Photoelectronic Technology Limited (Stock) China Crystal Technologies Co.,Ltd.(Stock) OEPIC SEMICONDUCTORS,INC.(Stock) C-Star (Yangzhou) technology Co., Ltd	Parent company of Epistar Corporation None None None None None None None None	Current financial assets at fair value through profit or loss Current financial assets at fair value through profit or loss Non-current financial assets at fair value through profit or loss Non-current financial assets at fair value through profit or loss Non-current investments in equity instruments at fair value through other comprehensive income Non-current investments in equity instruments at fair value through other comprehensive income Non-current investments in equity instruments at fair value through other comprehensive income Non-current investments in equity instruments at fair value through other comprehensive income Non-current investments in equity instruments at fair value through other comprehensive income	1,282,377 3,294,561 582,983 987,500 2,757,082 200,000 17,741,935 377,358 cash RMB5,000,000	57,386 $ 45,350 - - 192,224 26,031 993 - 22,040	0.17 None 3.00 6.91 2.57 2.04 8.97 8.93 5.00	57,386 $ 45,350 - - 192,224 26,031 993 - 22,040	Note1

Table 3-5

Securities held by	Marketable securities	Relationship with the securities issuer	General ledger account		As of December 31,2022	As of December 31,2022		Footnote
				Number of shares	Bookvalue	Ownership (%)	Fairvalue
Lextar Electronics Corporation Jhong Wei Corporation(Stock) Wellybond Corporation Wellysun Inc.(Stock) Lextar Electronics Corporation best Epitaxy Manufacturing Company Ltd. Note 1: Transferred from the Epistar’s stocks held as treasury stocks. Note 2: The company registrations had been canceled.		None None None	Non-current investments in equity instruments at fair value through other comprehensive income Non-current investments in equity instruments at fair value through other comprehensive income Non-current financial assets at fair value through profit or loss	106,000 2,400,000 3,135,000	- $ 36,480 23,059	0.00 5.29 6.30	- $ 36,480 23,059	Note 2

Table 3-6

ENNOSTAR INC.

Acquisition or sale of the same security with the accumulated cost exceeding $300 million or 20% of the Company's paid-in capital

Year ended December 31, 2022

Table 4 Investor	Marketable securities （Note 1）	General ledger account	Counterparty （Note 2）	Relationship with the investor （Note 2）	January1,2022 Balance as at	January1,2022 Balance as at	（Note3） Addition	（Note3） Addition		（Note3） Disposal	（Note3） Disposal		December31,2022 Balance as at Expressed in thousands of NTD (Except as otherwise indicated)	December31,2022 Balance as at Expressed in thousands of NTD (Except as otherwise indicated)
					Number of shares	Amount	Number of shares	Amount	Number of shares	Selling price	Book value	Gain (loss) on disposal	Number of shares	Amount
ENNOSTAR Inc. ENNOSTAR Inc. ENNOSTAR Inc. Harvestar Investment Corp. Lighting Investment Corporation Epistar Corporation	Epistar Corporation Harvestar Investment Corp. Unikorn Semiconductor Corporation Unikorn Semiconductor Corporation Taishin 1699 Money Market Fund (Beneficiary certificates) Taishin 1699 Money Market Fund (Beneficiary certificates)	Investments accounted for under equity method Investments accounted for under equity method Investments accounted for under equity method Investments accounted for under equity method Current financial assets at fair value through profit or loss Current financial assets at fair value through profit or loss	Subsidiary Subsidiary Subsidiary Controlled by the same entity - -	Related Related Related Related None None	1,088,701,410 65,000,000 - - 4,559,731 -	$39,027,656 676,611 - - 62,151 -	27,777,778 50,000,000 56,200,000 52,000,000 25,526,655 76,000,836	$1,000,000 500,000 593,132 444,785 350,000 1,042,000	- - - - 26,791,825 76,000,836	$ - - - - 367,500 1,042,733	$ - - - - 366,969 1,042,000	$ - - - - 531 733	1,116,479,188 115,000,000 56,200,000 52,000,000 3,294,561 -	$ 39,769,781 849,744 179,217 162,365 45,350 -

Note 1: Marketable securities in the table refer to stocks, bonds, beneficiary certificates and other related derivative securities.

Note 2: Fill in the columns the counterparty and relationship if securities are accounted for under the equity method; otherwise leave the columns blank. Note 3: Aggregate purchases and sales amounts should be calculated separately at their market values to verify whether they individually reach NT$300 million or 20% of paid-in capital or more. Note 4: Paid-in capital referred to herein is the paid-in capital of parent company. In the case that shares were issued with no par value or a par value other than NT$10 per share, the 20 % of paid-in capital shall be replaced by 10% of equity attributable to owners of the parent in the calculation.

Table 4-1

Table 5

ENNOSTAR INC.

Aquisition of real estate reaching NT$300 million or 20% of paid-in capital or more

Year ended December 31, 2022

Expressed in thousands of NTD (Except as otherwise indicated)

If the counterparty is a related party,

information as to the last transfer of data

Transaction information as to the last transfer of data Basis or Reason for acquisition of Real estate date or date Transaction Status of Relationship Relationship Date of the reference used in real estate and status of the Other acquired by Real estate of the event amount payment Counterparty with the seller Owner between the issuer transfer Amount setting the price real estate commitments Epistar Corporation Plant of SAVIOR 2022/3/3 $ 610,000 Installment based SAVIOR LIFETEC None - - - $ - Experts’ appraisal Required by the Company’s None LIFETEC on agreement CORPORATION report and market long-term operation CORPORATION price of nearby trading development target Epistar Corporation Plant of Hsinchu 2022/3/24 710,802 Installment based Lextar Electronics Controlled by AUO Related parties 2010/5/21 883,810 Experts’ appraisal In response to the None Science Park on agreement Corporation the same entity Corporation report and market specialisation and strategical price of nearby trading layout requirements of subtarget group of ENNOSTAR Inc.

Note 1: The appraisal result should be presented in the ‘Basis or reference used in setting the price’ column if the real estate aquisition of should be appraised pursuant to the regulations.

• Note 2: Paid-in capital referred to herein is the paid-in capital of parent company. In the case that shares were issued with no par value or a par value other than NT$10 per share,

the 20 % of paid-in capital shall be replaced by 10% of equity attributable to owners of the parent in the calculation.

• Note 3: Date of the event referred to herein is the date of contract signing, date of payment, date of execution of a trading order, date of title transfer, date of board resolution, or other date

that can confirm the counterparty and the monetary amount of the transaction, whichever is earlier.

Table 5-1

ENNOSTAR INC.

Disposal of real estate reaching NT$300 million or 20% of paid-in capital or more

Year ended December 31, 2022

Table 6

Table 6 Expressed in thousands of NTD (Except as otherwise indicated) Transaction Status of Basis or Real estate date or date Date of Book Disposal collection Gain (loss) Relationship Reason for reference used in Other disposed by Real estate of the event acquisition value amount of proceeds on disposal Counterparty with the seller disposal setting the price commitments Lextar Electronics Plant of Hsinchu 2022/3/24 2010/5/21 $ 586,439 $ 710,802 Installment based $ 124,363 Epistar Controlled by In response to the Experts’ appraisal None Corporation Science Park on agreement Corporation the same specialisation and report and market entity strategical layout price of nearby trading requirements of subtarget group of ENNOSTAR Inc.

• Note 1: The appraisal result should be presented in the ‘Basis or reference used in setting the price’ column if the real estate disposed of should be appraised pursuant to the regulations. Note 2: Paid-in capital referred to herein is the paid-in capital of parent company. In the case that shares were issued with no par value or a par value other than NT$10 per share, the 20 % of paid-in capital shall be replaced by 10% of equity attributable to owners of the parent in the calculation.

• Note 3: Date of the event referred to herein is the date of contract signing, date of payment, date of execution of a trading order, date of title transfer, date of board resolution, or other date that can confirm the counterparty and the monetary amount of the transaction, whichever is earlier.

Table 6-1

Table 7

ENNOSTAR INC.

Purchases or sales of goods from or to related parties reaching NT$100 million or 20% of paid-in capital or more

Year ended December 31, 2022

Expressed in thousands of NTD (Except as otherwise indicated)

Purchaser/seller	Counterparty	Relationship with the counterparty			Transaction		Differences in transaction terms	Differences in transaction terms	Notes/accounts receivable (payable)	Notes/accounts receivable (payable)	Footnote
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
Episky Corporation (Xiamen) Ltd. Episky Corporation (Xiamen) Ltd. Episky Corporation (Xiamen) Ltd. Epistar Corporation Epistar Corporation Epistar Corporation Epistar Corporation Epistar Corporation Epicrystal (Changzhou) Co., Ltd. Epicrystal (Changzhou) Co., Ltd. Epicrystal (Changzhou) Co., Ltd. Jiangsu Canyang Optoelectronics Ltd.	Lextar Electronics (Chuzhou) Corp. Shenzhen Epikylin Optoelectronics Co.,Ltd Epistar Corporation LEDAZ Co., Ltd. Yenrich Technology Corporation Shenzhen Epikylin Optoelectronics Co.,Ltd Episky Corporation (Xiamen) Ltd. Epicrystal (Changzhou) Co., Ltd. Jiangsu Canyang Optoelectronics Ltd. Epistar Corporation Episky Corporation (Xiamen) Ltd. Epistar Corporation	Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1	Sales Sales Sales Sales Sales Sales Sales Sales Sales Sales Sales Sales	($ 232,435) ( 1,493,516) ( 253,011) ( 208,849) ( 172,975) ( 549,080) ( 1,415,512) ( 223,855) ( 1,368,266) ( 962,056) ( 1,222,560) ( 356,364)	( 5) ( 31) ( 5) ( 1) ( 1) ( 3) ( 8) ( 1) ( 62) ( 43) ( 55) ( 27)	90 days after month- end closing 90 days after month- end closing 180 days after month- end closing 90 days after month- end closing and 20 days after next monthly billings 90 days after month- end closing 180 days after month- end closing 150 days after next month-end closing 90 days after month- end closing 90 days after month- end closing 90 days after month- end closing 90 days after month- end closing 90 days after month- end closing	Normal Normal Normal Normal Normal Normal Normal Normal Normal Normal Normal Normal	Normal Normal Normal Normal Normal Normal Normal Normal Normal Normal Normal Normal	$ 60,291 495,316 29,414 49,417 52,057 247,976 708,911 15,064 962,475 309,358 731,952 16,161	3 25 1 1 1 4 11 - 45 14 34 2

Table 7-1

Purchaser/seller	Counterparty	Relationship with the counterparty			Transaction		Differences in transaction terms	Differences in transaction terms	Notes/accounts receivable (payable)	Notes/accounts receivable (payable)	Footnote
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
Jiangsu Canyang Optoelectronics Ltd. Jiangsu Canyang Optoelectronics Ltd. Lextar Electronics Corporation Lextar Electronics Corporation Lextar Electronics Corporation Lextar Electronics (Chuzhou) Corp. Lextar Electronics (Chuzhou) Corp. Yenrich Technology Corporation ProLight Opto Technology Corporation Episky Corporation (Xiamen) Ltd. Episky Corporation (Xiamen) Ltd. Episky Corporation (Xiamen) Ltd. Epistar Corporation Epistar Corporation Epistar Corporation	Episky Corporation (Xiamen) Ltd. Epicrystal (Changzhou) Co., Ltd. AU Optronics (Xiamen) Corp. AUO (Suzhou) Corp Ltd. Fortech Electronics (Suzhou) Co., Ltd. Lextar Electronics Corporation Lextar Electronics (Suzhou) Corp. LEDAZ Co., Ltd. Shanghai Welight Electronic Co., LTD. Jiangsu Canyang Optoelectronics Ltd. Epistar Corporation Epicrystal (Changzhou) Co., Ltd. Jiangsu Canyang Optoelectronics Ltd. Episky Corporation (Xiamen) Ltd. Epicrystal (Changzhou) Co., Ltd.	Note 1 Note 1 Other related parties Other related parties Other related parties Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1	Sales Sales Sales Sales Sales Sales Sales Sales Sales Purchases Purchases Purchases Purchases Purchases Purchases	($ 811,520) ( 220,880) ( 109,133) ( 168,442) ( 257,572) ( 2,662,953) ( 898,028) ( 155,691) ( 141,183) 811,520 1,415,512 1,222,560 356,364 253,011 962,056	( 61) ( 16) ( 2) ( 4) ( 6) ( 52) ( 18) ( 39) ( 23) 19 34 29 4 3 12	90 days after month- end closing 90 days after month- end closing 120 days after month- end closing 120 days after month- end closing 120 days after month- end closing OA 90 days~OA 120 days OA 90 days~OA 120 days 90 days after month- end closing and 20 days after next monthly billings 120 days after month- end closing 90 days after month- end closing 150 days after next month-end closing 90 days after month- end closing 90 days after month- end closing 150 days after next month-end closing 90 days after month- end closing	Normal Normal Normal Normal Normal Normal Normal Normal Normal Normal Normal Normal Normal Normal Normal	Normal Normal Normal Normal Normal Normal Normal Normal Normal Normal Normal Normal Normal Normal Normal	$ 352,892 63,792 36,409 47,114 80,297 461,393 322,353 44,978 65,004 ( 352,892) ( 708,911) ( 731,952) ( 16,161) ( 29,414) ( 309,358)	45 8 4 5 9 35 24 38 44 ( 17) ( 34) ( 35) ( 1) ( 2) ( 21)

Table 7-2

Purchaser/seller	Counterparty	Relationship with the counterparty			Transaction		Differences in transaction terms	Differences in transaction terms	Notes/accounts receivable (payable)	Notes/accounts receivable (payable)	Footnote
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
Jiangsu Canyang Optoelectronics Ltd. Epicrystal (Changzhou) Co., Ltd Epicrystal (Changzhou) Co., Ltd Shenzhen Epikylin Optoelectronics Co.,Ltd Shenzhen Epikylin Optoelectronics Co.,Ltd Lextar Electronics Corporation Lextar Electronics Corporation Lextar Electronics (Suzhou) Corp. Lextar Electronics (Chuzhou) Corp. Lextar Electronics (Chuzhou) Corp. Yenrich Technology Corporation Shanghai Welight Electronic Co., LTD.	Epicrystal (Changzhou) Co., Ltd. Jiangsu Canyang Optoelectronics Ltd. Epistar Corporation Epistar Corporation Episky Corporation (Xiamen) Ltd. Lextar Electronics (Chuzhou) Corp. Tyntek Corporation Lextar Electronics (Chuzhou) Corp. Chuzhou Bwin Technology Corp. Episky Corporation (Xiamen) Ltd. Epistar Corporation ProLight Opto Technology Corporation	Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1	Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases	$ 1,368,266 220,880 223,855 549,080 1,493,516 2,662,953 125,619 898,028 178,622 232,435 172,975 141,183	130 16 17 27 73 79 4 93 5 7 67 100	90 days after month- end closing 90 days after month- end closing 90 days after month- end closing 180 days after month- end closing 90 days after month- end closing OA 90 days~OA 120 days OA 120 days OA 90 days~OA 120 days OA 60 days~OA 120 days OA 90 days OA 90 days 120 days after month- end closing	Normal Normal Normal Normal Normal Normal Normal Normal Normal Normal Normal Normal	Normal Normal Normal Normal Normal Normal Normal Normal Normal Normal Normal Normal	($ 962,475) ( 63,792) ( 15,064) ( 247,976) ( 495,316) ( 461,393) ( 25,726) ( 322,353) ( 20,370) ( 60,291) ( 52,057) ( 65,004)	( 5) ( 29) ( 7) ( 33) ( 67) ( 65) ( 4) ( 95) ( 2) ( 6) ( 78) ( 100)

Note 1: Investee company accounted for under the equity method directly and indirectly.

Table 7-3

ENNOSTAR INC.

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

December 31, 2022

Table 8 Creditor	Counterparty	Relationship with the counterparty	Balance as at December 31,2022	Balance as at December 31,2022	Total	Turnover rate	Overdue receivables	Overdue receivables	Amount collected subsequent to the balance sheet date Allowance for doubtful debts Expressed in thousands of NTD (Except as otherwise indicated)	Amount collected subsequent to the balance sheet date Allowance for doubtful debts Expressed in thousands of NTD (Except as otherwise indicated)
			Accounts receivable	Other receivable			Amount	Action taken
ENNOSTAR Inc. Epistar JV Holding (BVI)Co.,Ltd. Episky Corporation (Xiamen) Ltd. Epistar Corporation Epistar Corporation Epistar Corporation Epistar Corporation Epicrystal (Changzhou) Co., Ltd. Epicrystal (Changzhou) Co., Ltd. Jiangsu Canyang Optoelectronics Ltd. Lighting Investment Ltd. Luxlite (HK) Corporation Limited Lextar Electronics Corporation	Unikorn Semiconductor Corporation Epistar Corporation Shenzhen Epikylin Optoelectronics Co.,Ltd Jiangsu Canyang Optoelectronics Ltd. Shenzhen Epikylin Optoelectronics Co.,Ltd Episky Corporation (Xiamen) Ltd. Unikorn Semiconductor Corporation Epistar Corporation Episky Corporation (Xiamen) Ltd. Episky Corporation (Xiamen) Ltd. Epistar JV Holding (BVI)Co.,Ltd. Epistar JV Holding (BVI)Co.,Ltd. Unikorn Semiconductor Corporation	Note 2 Note 2 Note 2 Note 2 Note 2 Note 2 Note 2 Note 2 Note 2 Note 2 Note 2 Note 2 Note 2	$ - - 495,316 16,799 247,976 708,911 39,181 309,358 731,952 352,892 - - -	$ 351,856 529,978 - 249,055 1,529 43,095 256,025 919 - - 187,163 139,975 350,000	$ 351,856 529,978 495,316 265,854 249,505 752,006 295,206 310,277 731,952 352,892 187,163 139,975 350,000	- - 3.00 ( 1.58) 1.64 1.72 0.65 0.10 1.90 2.55 - - -	$ - - 8,843 203 - 99,151 1,030 - 426,758 - - - -		$ 201 - 145,072 2,088 73,665 133,589 33,589 36,302 62,069 6,819 - - -	$ - - - - - - - - - - - -

Table 8-1

Creditor	Counterparty	Relationship with the counterparty	Balance as at December 31,2022	Balance as at December 31,2022	Total	Turnover rate	Overdue receivables	Overdue receivables	Amount collected subsequent to the balance sheet date	Allowance for doubtful debts
			Accounts receivable	Other receivable			Amount	Action taken
Lextar Electronics (Chuzhou) Corp. Lextar Electronics (Chuzhou) Corp.	Lextar Electronics Corporation Lextar Electronics (Suzhou) Corp.	Note 2 Note 2	$ 461,393 322,353	$ 2,022 -	$ 463,415 322,353	3.25 2.38	$ - 114,738		$ 143,653 114,211	$ - -

Note 1: The Company endeavored to collect the overdue amount. Epistar has received $203 and $94,208 from Jiangsu Canyang and Episky Corporation (Xiamen). Episky Corporation (Xiamen) has received $8,843 from Shenzhen Epikylin. Epicrystal (Changzhou) has received $44,080 from Episky Corporation (Xiamen). Lextar Electronics (Chuzhou) has received $141,211 from Lextar Electronics (Suzhou).

Note 2: Investee company accounted for under the equity method directly and indirectly.

Table 8-2

ENNOSTAR INC.

Significant inter-company transactions during the reporting periods

Year ended December 31, 2022

Table 9

Expressed in thousands of NTD (Except as otherwise indicated)

Transaction

Number (Note 1)	Companyname	Counterparty	Relationship (Note 2)	General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets(Note 3)
0 0 1 1 1 1 1 1	ENNOSTAR Inc. ENNOSTAR Inc. Epistar Corporation Epistar Corporation Epistar Corporation Epistar Corporation Epistar Corporation Epistar Corporation	Unikorn Semiconductor Corporation Epistar Corporation Yenrich Technology Corporation Shenzhen Epikylin Optoelectronics Co.,Ltd Episky Corporation (Xiamen) Ltd. Epicrystal (Changzhou) Co., Ltd. Jiangsu Canyang Optoelectronics Ltd. Episky Corporation (Xiamen) Ltd.	1 1 3 3 3 3 3 3	Other receivable Other operating revenue Sales Sales Sales Sales Cost of goods sold Cost of goods sold	$ 351,856 128,117 172,975 549,080 1,415,512 223,855 356,364 253,011	Based on contract terms Based on contract terms Conducted in the ordinary course of business with terms similar to those with third parties Conducted in the ordinary course of business with terms similar to those with third parties Conducted in the ordinary course of business with terms similar to those with third parties Conducted in the ordinary course of business with terms similar to those with third parties Conducted in the ordinary course of business with terms similar to those with third parties Conducted in the ordinary course of business with terms similar to those with third parties	0.48 0.44 0.60 1.90 4.90 0.78 1.23 0.88

Table 9-1

Transaction

Number (Note 1)	Companyname	Counterparty	Relationship (Note 2)	General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets(Note 3)
1 1 1 1 1 1 1 2 2	Epistar Corporation Epistar Corporation Epistar Corporation Epistar Corporation Epistar Corporation Epistar Corporation Epistar Corporation Episky Corporation (Xiamen) Ltd. Episky Corporation (Xiamen) Ltd.	Epicrystal (Changzhou) Co., Ltd. Yenrich Technology Corporation Shenzhen Epikylin Optoelectronics Co.,Ltd Episky Corporation (Xiamen) Ltd. Epicrystal (Changzhou) Co., Ltd. Unikorn Semiconductor Corporation Jiangsu Canyang Optoelectronics Ltd. Lextar Electronics (Chuzhou) Corp. Shenzhen Epikylin Optoelectronics Co.,Ltd	3 3 3 3 3 3 3 3 3	Cost of goods sold Accounts receivable Accounts receivable Accounts receivable Accounts receivable Other receivable Other receivable Sales Sales	$ 962,056 52,057 247,976 708,911 15,064 256,025 249,055 232,435 1,493,516	Conducted in the ordinary course of business with terms similar to those with third parties Conducted in the ordinary course of business with terms similar to those with third parties Conducted in the ordinary course of business with terms similar to those with third parties Conducted in the ordinary course of business with terms similar to those with third parties Conducted in the ordinary course of business with terms similar to those with third parties Loans granted Conducted in the ordinary course of business with terms similar to those with third parties Conducted in the ordinary course of business with terms similar to those with third parties Conducted in the ordinary course of business with terms similar to those with third parties	3.33 0.07 0.34 0.97 0.02 0.35 0.34 0.80 5.17

Table 9-2

Transaction

Number (Note 1)	Companyname	Counterparty	Relationship (Note 2)	General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets(Note 3)
2 2 2 3 3 3 3 3 4	Episky Corporation (Xiamen) Ltd. Episky Corporation (Xiamen) Ltd. Episky Corporation (Xiamen) Ltd. Epicrystal (Changzhou) Co., Ltd. Epicrystal (Changzhou) Co., Ltd. Epicrystal (Changzhou) Co., Ltd. Epicrystal (Changzhou) Co., Ltd. Epicrystal (Changzhou) Co., Ltd. Jiangsu Canyang Optoelectronics Ltd.	Lextar Electronics (Chuzhou) Corp. Shenzhen Epikylin Optoelectronics Co.,Ltd Epistar Corporation Jiangsu Canyang Optoelectronics Ltd. Episky Corporation (Xiamen) Ltd. Jiangsu Canyang Optoelectronics Ltd. Epistar Corporation Episky Corporation (Xiamen) Ltd. Episky Corporation (Xiamen) Ltd.	3 3 3 3 3 3 3 3 3	Accounts receivable Accounts receivable Accounts receivable Sales Sales Accounts receivable Accounts receivable Accounts receivable Sales	$ 60,291 495,316 29,414 1,368,266 1,222,560 962,475 309,358 731,952 811,520	Conducted in the ordinary course of business with terms similar to those with third parties Conducted in the ordinary course of business with terms similar to those with third parties Conducted in the ordinary course of business with terms similar to those with third parties Conducted in the ordinary course of business with terms similar to those with third parties Conducted in the ordinary course of business with terms similar to those with third parties Conducted in the ordinary course of business with terms similar to those with third parties Conducted in the ordinary course of business with terms similar to those with third parties Conducted in the ordinary course of business with terms similar to those with third parties Conducted in the ordinary course of business with terms similar to those with third parties	0.08 0.68 0.04 4.74 4.23 1.32 0.42 1.00 2.81

Table 9-3

Transaction

Number (Note 1)	Companyname	Counterparty	Relationship (Note 2)	General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets(Note 3)
4 4 4 4 4 5 6 7 8 9 9	Jiangsu Canyang Optoelectronics Ltd. Jiangsu Canyang Optoelectronics Ltd. Jiangsu Canyang Optoelectronics Ltd. Jiangsu Canyang Optoelectronics Ltd. Jiangsu Canyang Optoelectronics Ltd. Luxlite (HK) Corporation Limited Epistar JV Holding (BVI)Co.,Ltd. Lighting Investment Ltd. Lextar Electronics Corporation Lextar Electronics (Chuzhou) Corp. Lextar Electronics (Chuzhou) Corp.	Epicrystal (Changzhou) Co., Ltd. Epistar Corporation Episky Corporation (Xiamen) Ltd. Epicrystal (Changzhou) Co., Ltd. Epicrystal (Changzhou) Co., Ltd. Epistar JV Holding (BVI)Co.,Ltd. Epistar Corporation Epistar JV Holding (BVI)Co.,Ltd. Unikorn Semiconductor Corporation Lextar Electronics Corporation Lextar Electronics Corporation	3 3 3 3 3 3 3 3 3 3 3	Sales Accounts receivable Accounts receivable Accounts receivable Processing fees Other receivable Other receivable Other receivable Other receivable Sales Accounts receivable	$ 220,880 16,161 352,892 63,792 164,824 139,975 529,978 187,163 350,000 2,662,953 461,393	Conducted in the ordinary course of business with terms similar to those with third parties Conducted in the ordinary course of business with terms similar to those with third parties Conducted in the ordinary course of business with terms similar to those with third parties Conducted in the ordinary course of business with terms similar to those with third parties Conducted in the ordinary course of business with terms similar to those with third parties Loans granted Loans granted Loans granted Loans granted Conducted in the ordinary course of business with terms similar to those with third parties Conducted in the ordinary course of business with terms similar to those with third parties	0.76 0.02 0.48 0.09 0.57 0.19 0.72 0.26 0.48 9.22 0.63

Table 9-4

Transaction

Number (Note 1)	Companyname	Counterparty	Relationship (Note 2)	General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets(Note 3)
9 9 10	Lextar Electronics (Chuzhou) Corp. Lextar Electronics (Chuzhou) Corp. ProLight Opto Technology Corporation	Lextar Electronics (Suzhou) Corp. Lextar Electronics (Suzhou) Corp. Shanghai Welight Electronic Co., LTD	3 3 3	Sales Accounts receivable Sales	$ 898,028 322,353 141,183	Conducted in the ordinary course of business with terms similar to those with third parties Conducted in the ordinary course of business with terms similar to those with third parties Conducted in the ordinary course of business with terms similar to those with third parties	3.11 0.44 0.49

Note 1: Parent company is ‘0’.The subsidiaries are numbered in order starting from ‘1’.

Note 2: Relationship between transaction company and counterparty is classified into the following three categories; fill in the number of category each case belongs

• to (If transactions between parent company and subsidiaries or between subsidiaries refer to the same transaction, it is not required to disclose twice.

For example, if the parent company has already disclosed its transaction with a subsidiary, then the subsidiary is not required to disclose the transaction; for

transactions between two subsidiaries, if one of the subsidiaries has disclosed the transaction, then the other is not required to disclose the transaction.):

• (1) Parent company to subsidiary.

• (2) Subsidiary to parent company.

• (3) Subsidiary to subsidiary.

• Note 3: Regarding percentage of transaction amount to consolidated total operating revenues or total assets, it is computed based on period-end balance of transaction to consolidated total assets for balance sheet accounts and based on accumulated transaction amount for the period to consolidated total operating revenues for income statement accounts.

• Note 4: Disclosure of the transactions over 100 million New Taiwan dollars only and the related party transactions for counterparty are not disclosed.

Table 9-5

Information on investees

ENNOSTAR INC.

Year ended December 31, 2022

Table 10

Expressed in thousands of NTD (Except as otherwise indicated)

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held as at December 31,2022	Shares held as at December 31,2022	Shares held as at December 31,2022	Net profit (loss) of the investee for the year ended December 31,2022	Investment income (loss) recognised by the Company for the year ended December 31, 2022	Footnote
				Balance as at December 31,2022	Balance as at December 31, 2021	Number of shares	Ownership (%)	Book value
ENNOSTAR Inc. ENNOSTAR Inc. ENNOSTAR Inc. ENNOSTAR Inc. ENNOSTAR Inc. ENNOSTAR Inc. ENNOSTAR Inc.	Epistar Corporation Lextar Electronics Corporation Harvestar Investment Corp. Tyntek Corporation Amengine Corporation GCS Holding Inc. Calystar Investment Corp.	Taiwan Taiwan Taiwan Taiwan Taiwan Cayman Islands Taiwan	Manufacturing and sales of LED wafers and chips Manufacturing and sales of LED wafers, chips, packages and modules Professional investment Research and development, manufacture, sales of gallium arsenide, infrared, light-emitting diode, laser diode, phototransistor, photodiode, single crystal, epitaxy and chip, and concurrent research and development, manufacture and sales of electro-optical system of export-import trade Developing and sales of medical optical sensor modules OEM manufacturing of GaAs / InP / GaN / SiC wafers for RF and optoelectronics Professional investment	$ 38,607,380 11,724,646 1,150,000 584,583 40,212 431,990 440,000	$ 37,607,380 11,724,646 650,000 584,583 10,210 431,990 290,000	1,116,479,188 514,916,380 115,000,000 23,799,000 6,922,000 9,028,000 44,000,000	100.00 100.00 100.00 7.92 75.96 8.15 100.00	$ 39,769,781 11,152,889 849,744 594,097 25,747 411,447 409,063	$ 915,860 ( 264,720) ( 200,651) ( 181,505) ( 11,542) ( 939,717) ( 48,708)	$ 958,851 ( 431,257) ( 200,375) ( 16,149) ( 7,576) ( 65,535) ( 48,708)	Note1 Note1

Table 10-1

Initial investment amount

Shares held as at December 31, 2022

Investor	Investee	Location	Main business activities	Balance as at December 31,2022	Balance as at December 31, 2021	Number of shares	Ownership (%)	Book value	Net profit (loss) of the investee for the year ended December 31,2022	Investment income (loss) recognised by the Company for the year ended December 31, 2022	Footnote
ENNOSTAR Inc. ENNOSTAR Inc. ENNOSTAR Inc. ENNOSTAR Inc. Harvestar Investment Corp. Harvestar Investment Corp. Harvestar Investment Corp.	Unikorn Semiconductor Corporation Precistar Investment Corp. Praistar Investment Corp. Manastar Investment Corp. GCS Holding Inc. Tyntek Corporation Unikorn Semiconductor Corporation	Taiwan Taiwan Taiwan Taiwan Cayman Islands Taiwan Taiwan	Original equipment manufacturer of III-V semiconductor Professional investment Professional investment Professional investment OEM manufacturing of GaAs / InP / GaN / SiC wafers for RF and optoelectronics Research and development, manufacture, sales of gallium arsenide, infrared, light-emitting diode, laser diode, phototransistor, photodiode, single crystal, epitaxy and chip, and concurrent research and development, manufacture and sales of electro-optical system of export-import trade Original equipment manufacturer of III-V semiconductor	$ 593,132 270,000 270,000 1,000 433,099 209,551 444,785	$ - - - - 433,099 113,931 -	56,200,000 27,000,000 27,000,000 100,000 9,013,000 10,102,000 52,000,000	17.99 100.00 100.00 100.00 8.13 3.36 16.65	$ 179,217 49,004 49,004 981 412,471 245,635 162,365	($ 976,415) ( 17) ( 17) ( 19) ( 939,717) ( 181,505) ( 976,415)	($ 122,088) ( 17) ( 17) ( 19) ( 65,430) ( 4,955) ( 131,230)	Note1 Note1

Table 10-2

Initial investment amount

Shares held as at December 31, 2022

Investor	Investee	Location	Main business activities	Balance as at December 31,2022	Balance as at December 31, 2021	Number of shares	Ownership (%)	Book value	Net profit (loss) of the investee for the year ended December 31,2022	Investment income (loss) recognised by the Company for the year ended December 31, 2022	Footnote
Calystar Investment Corp. Calystar Investment Corp. Precistar Investment Corp. Praistar Investment Corp. Unikorn Semiconductor Corporation Epistar Corporation Epistar Corporation Epistar Corporation Epistar Corporation	GCS Holding Inc. Tyntek Corporation Unikorn Semiconductor Corporation Unikorn Semiconductor Corporation GCS Holding Inc. iReach Corporation Epistar JV Holding (BVI) Co., Ltd. Full Star Enterprises Limited Lighting Investment Corporation	Cayman Islands Taiwan Taiwan Taiwan Cayman Islands Taiwan British Virgin Islands Hong Kong Taiwan	OEM manufacturing of GaAs / InP / GaN / SiC wafers for RF and optoelectronics Research and development, manufacture, sales of gallium arsenide, infrared, light-emitting diode, laser diode, phototransistor, photodiode, single crystal, epitaxy and chip, and concurrent research and development, manufacture and sales of electro-optical system of export-import trade Original equipment manufacturer of III-V semiconductor Original equipment manufacturer of III-V semiconductor OEM manufacturing of GaAs / InP / GaN / SiC wafers for RF and optoelectronics Manufacturing, sales, packaging and module design of semiconductor light emitting devices Professional investment Professional investment Professional investment	$ 265,135 97,787 268,000 268,000 1,051 70,000 14,960,129 166,785 1,561,814	$ 265,135 - - - 1,051 70,000 14,960,129 166,785 2,161,814	6,500,000 5,190,000 13,400,000 13,400,000 20,000 7,000,000 48,278 cash USD8,660,000 191,478,518	5.87 1.73 4.29 4.29 0.02 39.09 100.00 100.00 100.00	$ 236,436 93,362 47,021 47,021 1,125 50,413 9,824,559 271,689 1,453,484	($ 939,717) ( 181,505) ( 976,415) ( 976,415) ( 939,717) 31,974 ( 154,187) 8,927 ( 25,467)	($ 46,489) ( 2,248) - - ( 1) 9,532 ( 115,604) 8,927 ( 23,621)	Note1 Note1 Note1

Table 10-3

Initial investment amount

Shares held as at December 31, 2022

Investor	Investee	Location	Main business activities	Balance as at December 31,2022	Balance as at December 31, 2021	Number of shares	Ownership (%)	Book value	Net profit (loss) of the investee for the year ended December 31,2022	Investment income (loss) recognised by the Company for the year ended December 31, 2022	Footnote
Epistar Corporation Epistar Corporation Epistar Corporation Epistar Corporation Epistar Corporation Epistar Corporation Epistar JV Holding (BVI) Co.,Ltd. Epistar JV Holding (BVI) Co.,Ltd. Epistar JV Holding (BVI) Co.,Ltd. Epistar JV Holding (BVI) Co., Ltd. Epistar JV Holding (BVI) Co., Ltd.	Unikorn Semiconductor Corporation SH Co., Ltd. TE Opto Corporation GaN Force Corporation Tyntek Corporation Can Yang Investments Limited HUGA Holding (SAMOA) Limited LiteStar JV Holding (BVI) Co.,Ltd. United LED Corporation (Hong Kong) Limited Episky (Hong Kong) Limited Can Yang Investments Limited	Taiwan Taiwan Taiwan Taiwan Taiwan Hong Kong SAMOA British Virgin Islands Hong Kong Hong Kong Hong Kong	Original equipment manufacturer of III-V semiconductor Sales of LED chips Sales of LED chips Design, manufacturing and sales of semiconductor materoals and modules Research and development, manufacture, sales of gallium arsenide, infrared, light-emitting diode, laser diode, phototransistor, photodiode, single crystal, epitaxy and chip, and concurrent research and development, manufacture and sales of electro-optical system of export-import trade Professional investment Professional investment Professional investment Professional investment Professional investment Professional investment	$ 400,000 31,792 9,200 77,700 1,243 66,745 334,967 3,408,835 2,029,760 2,124,096 4,370,156	$ 1,100,000 31,792 9,200 77,700 - 66,745 334,967 3,408,835 2,029,760 2,124,096 4,291,894	40,000,000 3,179,176 920,000 1,118,600 50,000 2,679,063 12,551,035 10,882 67,000,165 cash USD68,000,000 64,793,559	12.80 49.00 40.00 64.32 0.02 3.53 100.00 82.41 74.86 100.00 85.26	$ 140,533 2,400 44,069 230 1,198 58,043 4,231 3,566,786 268,634 2,292,004 1,403,863	($ 976,415) ( 1,494) 5,951 ( 1,899) ( 181,505) 46,497 ( 10) ( 203,142) ( 12,849) ( 44,979) 46,497	($ 262,577) ( 732) 2,380 ( 1,221) ( 41) 1,639 ( 10) ( 167,409) ( 9,619) ( 44,979) 39,643	Note1

Table 10-4

Initial investment amount

Shares held as at December 31, 2022

Investor	Investee	Location	Main business activities	Balance as at December 31,2022	Balance as at December 31, 2021	Number of shares	Ownership (%)	Book value	Net profit (loss) of the investee for the year ended December 31,2022	Investment income (loss) recognised by the Company for the year ended December 31, 2022	Footnote
GaN Force Corporation Lighting Investment Ltd. Lighting Investment Ltd. Lighting Investment Ltd. Lighting Investment Ltd. Lite Star JV Holding (BVI) Co.,Ltd. Lighting Investment Corporation Lighting Investment Corporation Lighting Investment Corporation Lighting Investment Corporation Lighting Investment Corporation Lighting Investment Corporation Lighting Investment Corporation	GV Semiconductor Inc. LEDAZ Co., Ltd. Interlight Optotech (HK) Co.,Limited Epistar (Hong Kong) Limited Luxlite (HK) Corporation Limited Epicrystal (Hong Kong) Co. Ltd. LEDAZ Co., Ltd. Lighting Investment Ltd. Yenrich Opto (Hong Kong) Limited ProLight Opto Technology Corporation Can Yang Investments Limited GaNrich Semiconductor Corporation LEDOLUX Sp.Zo.O.	USA Korea Hong Kong Hong Kong Hong Kong Hong Kong Korea British Virgin Islands Hong Kong Taiwan Hong Kong Taiwan Poland	R&D and sales of electronic components Engineering service of LED Sales of LED packages Professional investment Professional investment Professional investment Engineering service of LED Professional investment Sales of LED lighting products Manufacturing and sales of LED packages Professional investment Design and technology service of LED lighting product Assembling and sales of LED bulbs	$ - 48,166 516 2,556 133,979 4,403,034 23,993 152,701 133,403 - 72,436 67,101 133,455	$ 93,582 48,166 12,806 2,556 133,145 4,403,034 23,993 152,701 133,403 56,322 72,436 64,301 133,455	- 88,460 429,000 82,850 3,800,000 146,600,000 44,065 45,642 4,010,000 - 5,218,605 4,428,000 156,994	- 28.13 30.00 100.00 100.00 100.00 14.01 100.00 100.00 - 6.87 83.39 60.00	$ - 25,818 10,941 ( 245) 280,138 4,327,287 17,094 739,306 75,909 - 113,119 ( 27,420) 11,310	($ 557) 131,992 ( 4,334) ( 34) 5,284 ( 203,069) 131,992 52,613 57 ( 94,172) 46,497 ( 23,623) ( 678)	($ 1,831) 37,129 ( 1,300) ( 34) 5,284 ( 203,069) 16,367 52,613 57 ( 4,365) 3,194 ( 19,609) ( 407)

Table 10-5

Initial investment amount

Shares held as at December 31, 2022

Investor	Investee	Location	Main business activities	Balance as at December 31,2022	Balance as at December 31, 2021	Number of shares	Ownership (%)	Book value	Net profit (loss) of the investee for the year ended December 31,2022	Investment income (loss) recognised by the Company for the year ended December 31, 2022	Footnote
Lighting Investment Corporation Lighting Investment Corporation Lighting Investment Corporation Lighting Investment Corporation Episky Corporation (Xiamen) Ltd. Epicrystal (Changzhou) Co., Ltd. Episky Corporation (Xiamen) Ltd. Episky Corporation (Xiamen) Ltd.	Joint Power Exponent, Ltd. Tyntek Corporation GaN Force Corporation Domi-Star Optoelectronics Corporation Epicrystal (Changzhou) Co., Ltd. Changzhou Chemsemi Co., Ltd. LEADSTAR Micro-Crystal Display Corporation (JiangSu) Ltd. Shenzhen Epikylin Optoelectronics Co.,Ltd	Taiwan Taiwan Taiwan Taiwan China China China China	Power IC design and module sales Research and development, manufacture, sales of gallium arsenide, infrared, light-emitting diode, laser diode, phototransistor, photodiode, single crystal, epitaxy and chip, and concurrent research and development, manufacture and sales of electro-optical system of export-import trade Design, manufacturing and sales of semiconductor materoals and modules Design and sales of LED lighting product Manufacturing and sales of LED wafers and chips OEM manufacturing of compound semiconductor RFID wafers and optoelectronic wafers Developing, manufacturing and sales of LED packages, modules and related applications Sales of LED chips	$ 11,599 1,276 641 490 147,472 469,590 122,036 43,770	$ 11,599 258 641 490 147,472 469,590 122,036 43,770	1,757,000 50,000 620,400 49,000 cash USD5,200,000 cash RMB110,000,000 cash RMB29,100,000 cash RMB10,000,000	11.26 0.02 35.68 49.00 3.31 10.44 9.70 100.00	$ 5,587 790 703 343 153,387 791,206 98,800 193,729	($ 28,185) ( 181,505) ( 1,899) ( 87) ( 217,465) ( 1,198,668) ( 359,037) 23,127	($ 3,464) ( 36) ( 261) ( 43) ( 4,656) ( 130,126) ( 23,926) 23,774	Note1 Note1

Table 10-6

Initial investment amount

Shares held as at December 31, 2022

Investor	Investee	Location	Main business activities	Balance as at December 31,2022	Balance as at December 31, 2021	Number of shares	Ownership (%)	Book value	Net profit (loss) of the investee for the year ended December 31,2022	Investment income (loss) recognised by the Company for the year ended December 31, 2022	Footnote
Lextar Electronics Corporation Lextar Electronics Corporation Lextar Electronics Corporation Lextar Electronics Corporation Lextar Electronics Corporation Lextar Electronics Corporation Lextar Electronics Corporation Lextar Electronics Corporation Lextar Electronics Corporation Lextar Electronics Corporation Lextar Electronics Corporation	Lextar (Singapore) Pte. Ltd. Wellybond Optronics HK Limited Wellypower Optronics Corporation Apower Optronics Corporation Liang Li Venture Corp. Wellybond Corporation Trendylite Corporation Hexawave, Inc. Yenrich Technology Corporation ProLight Opto Technology Corporation Tyntek Corporation	Sinapore Hong Kong British Virgin Islands British Virgin Islands Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan	Professional investment Professional investment Professional investment Professional investment Professional investment Professional investment Sales of products Manufacturing and sales of compound semiconductor materials and modules Manufacturing and sales of LED packages Manufacturing and sales of LED packages Research and development, manufacture, sales of gallium arsenide, infrared, light-emitting diode, laser diode, phototransistor, photodiode, single crystal, epitaxy and chip, and concurrent research and development, manufacture and sales of electro-optical system of export-import trade	$ 2,709,310 17,888 44,898 381,638 175,374 746,484 18,100 147,506 980,487 97,031 1,304	$ 2,709,310 17,888 44,898 381,638 175,374 746,484 18,100 147,506 530,487 - -	90,270,000 63,000,000 5,153,061 31,600,000 18,000,000 75,000,000 2,850,750 12,716,000 66,000,000 6,500,000 50,000	100.00 100.00 100.00 100.00 100.00 100.00 90.50 31.81 100.00 9.55 0.02	$ 2,504,064 11,848 165,384 1,188,138 124,839 552,365 37,564 74,062 752,231 86,187 1,126	($ 152,032) 119 3,167 23,452 ( 717) ( 68,360) 2,089 ( 59,224) ( 174,328) ( 94,172) ( 181,505)	($ 152,032) 119 3,167 23,452 ( 717) ( 68,360) 1,890 ( 20,300) ( 174,328) ( 6,154) ( 124)	Note1

Table 10-7

Initial investment amount

Shares held as at December 31, 2022

Investor	Investee	Location	Main business activities	Balance as at December 31,2022	Balance as at December 31, 2021	Number of shares	Ownership (%)	Book value	Net profit (loss) of the investee for the year ended December 31,2022	Investment income (loss) recognised by the Company for the year ended December 31, 2022	Footnote
Lextar (Singapore) Pte. Ltd. Lextar (Singapore) Pte. Ltd. Wellybond Corporation Wellybond Corporation Wellybond Corporation Wellybond Corporation Wellybond Corporation Wellybond Corporation Liang Li Venture Corp.	Lextar Electronics Korea Ltd. Aurora International Lighting Corporation Limited VOGITO INNOVATION CO., LTD. Hexawave, Inc. WellyHertz Electronics Corp. Joint Power Exponent, Ltd. ProLight Opto Technology Corporation Tyntek Corporation ProLight Opto Technology Corporation	Korea Hong Kong Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan	Sale of LED and aftersales service Sales of lighting Design of lighting Manufacturing and sales of compound semiconductor materials and modules Manufacturing and sales of switching power supply modules Power IC design and module sales Manufacturing and sales of LED packages Research and development, manufacture, sales of gallium arsenide, infrared, light-emitting diode, laser diode, phototransistor, photodiode, single crystal, epitaxy and chip, and concurrent research and development, manufacture and sales of electro-optical system of export-import trade Manufacturing and sales of LED packages	$ 3,025 204,136 1,000 147,494 30,000 68,250 303,264 1,288 91,763	$ 3,025 204,136 1,000 147,494 10,000 33,000 251,016 258 91,763	22,000 2,000,000 100,000 12,715,000 20,000,000 4,550,000 20,310,000 50,000 6,185,000	100.00 20.00 50.00 31.81 86.96 29.17 29.84 0.02 9.09	$ 4,642 - 2,437 74,056 16,220 48,508 269,343 1,114 82,025	$ 383 ( 1,051,816) 2,067 ( 59,224) ( 9,753) ( 28,185) ( 94,172) ( 181,505) ( 94,172)	$ 383 ( 197,777) 1,033 ( 20,298) ( 8,605) ( 12,637) ( 26,572) ( 126) ( 8,558)	Note1 Note1

Table 10-8

Initial investment amount

Shares held as at December 31, 2022

Investor	Investee	Location	Main business activities	Balance as at December 31,2022	Balance as at December 31, 2021	Number of shares	Ownership (%)	Book value	Net profit (loss) of the investee for the year ended December 31,2022	Investment income (loss) recognised by the Company for the year ended December 31, 2022	Footnote
Liang Li Venture Corp. Hexawave, Inc. Yenrich Technology Corporation Yenrich Technology Corporation ProLight Opto Technology Corporation ProLight Opto Holding Corporation	Tyntek Corporation WellyWave Semiconductors Inc. ProLight Opto Technology Corporation Tyntek Corporation ProLight Opto Holding Corporation ProLight Opto Technology Corporation	Taiwan Taiwan Taiwan Taiwan Seychelles Seychelles	Research and development, manufacture, sales of gallium arsenide, infrared, light-emitting diode, laser diode, phototransistor, photodiode, single crystal, epitaxy and chip, and concurrent research and development, manufacture and sales of electro-optical system of export-import trade Manufacturing and sales of compound semiconductor materials and modules Manufacturing and sales of LED packages Research and development, manufacture, sales of gallium arsenide, infrared, light-emitting diode, laser diode, phototransistor, photodiode, single crystal, epitaxy and chip, and concurrent research and development, manufacture and sales of electro-optical system of export-import trade Professional investment Professional investment	$ 1,293 49,000 27,366 1,324 4,402 4,403	$ - 137,100 27,366 - 4,402 4,403	50,000 6,717,900 1,822,000 50,000 150,000 150,000	0.02 49.00 2.68 0.02 100.00 100.00	$ 1,116 55,925 24,117 1,143 364 391	($ 181,505) ( 47,179) ( 94,172) ( 181,505) 1,228 1,228	($ 123) ( 29,280) ( 2,521) ( 126) 1,228 1,228	Note1 Note1

Table 10-9

Initial investment amount

Shares held as at December 31, 2022

Investor	Investee	Location	Main business activities	Balance as at December 31,2022	Balance as at December 31, 2021	Number of shares	Ownership (%)	Book value	Net profit (loss) of the investee for the year ended December 31,2022	Investment income (loss) recognised by the Company for the year ended December 31, 2022	Footnote
Lextar Electronics (Suzhou) Corp. Lextar Electronics (Suzhou) Corp.	Lextar Electronics (Chuzhou) Corp. Chuzhou Bwin Technology Corp.	China China	Manufacturing and sales of LED wafers, chips, packages, lights, and modules. Developing, manufacturing, sales of metal and plastic technical products.	3,094,825 130,726	3,094,825 130,726	cash RMB700,000,000 cash RMB29,000,000	100.00 48.33	3,488,917 76,339	239,532 ( 85,790)	239,532 ( 40,563)

Note1: The group holds two seats on the Board of Directors, which indicates that the Group has significant influence over the investee. Accordingly, the Group listed the investee as an associate.

Table 10-10

Table 11

ENNOSTAR INC.

Information on investments in Mainland China

Year ended December 31, 2022

Expressed in thousands of NTD

(Except as otherwise indicated)

Investee in Mainland China	Main business activities	Paid-in capital	Investment method （Note 1）	Accumulated amount of remittance from Taiwan to Mainland China as of January 1, 2022	Amount remitted from Taiwan to Mainland China/ Amount remitted back to Taiwan for the year ended December 31,2022	Amount remitted from Taiwan to Mainland China/ Amount remitted back to Taiwan for the year ended December 31,2022	Accumulated amount of remittance from Taiwan to Mainland China as of December 31,2022	Net income of investee for the year ended December 31, 2022	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the year ended December 31, 2022	Book value of investments in Mainland China as of December 31,2022	Accumulated amount of investment income remitted back to Taiwan as of December 31, 2022	Footnote
					Remitted to Mainland China	Remitted back to Taiwan
Episky Corporation (Xiamen) Ltd. United LED Shan Dong Corporation Epicrystal Corporation (Changzhou) Ltd. Luxlite (Shenzhen) Corporation Limited KFESLighting Co., Ltd. APT Electronics Co., Ltd. China Crystal Technologies Co.,Ltd.	Manufacturing and sales of LED chips Manufacturing and sales of LED wafers and chips Manufacturing and sales of LED wafers and chips Sales of LED chips Manufacturing and sales of LED wafers, chips, packages and modules Developing, manufacturing and sale of LED extension and chip, module and light instrument Developing, manufacturing and sale of gallium arsenide unit crystal and chips	$ 2,124,096 2,404,500 4,494,125 96,430 7,785,966 1,854,198 891,131	2 2 2 2 2 3 2	$ 2,124,096 1,824,844 3,423,550 48,687 1,461,593 296,108 96,084	$ - - - - - - -	$ - - - - - - -	$ 2,124,096 1,824,844 3,423,550 48,687 1,461,593 296,108 96,084	($ 44,979) ( 13,777) ( 217,465) 929 - - -	100.00 74.86 76.95 - 18.77 11.69 8.97	($ 44,979) ( 10,313) ( 167,349) 929 - - ( 41,420)	$ 2,291,997 281,390 3,566,116 - 2,018,014 - 993	$ - - - 59,270 - - -	2(3) 2(3) 2(1) 2(1) 2(3) 2(3) 2(3)

Table 11-1

Investee in Mainland China	Main business activities	Paid-in capital	Investment method （Note 1）	Accumulated amount of remittance from Taiwan to Mainland China as of January 1, 2022	Amount remitted from Taiwan to Mainland China/ Amount remitted back to Taiwan for the year ended December 31,2022	Amount remitted from Taiwan to Mainland China/ Amount remitted back to Taiwan for the year ended December 31,2022	Accumulated amount of remittance from Taiwan to Mainland China as of December 31,2022	Net income of investee for the year ended December 31, 2022	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the year ended December 31, 2022	Book value of investments in Mainland China as of December 31,2022	Accumulated amount of investment income remitted back to Taiwan as of December 31, 2022	Footnote
					Remitted to Mainland China	Remitted back to Taiwan
Ufeco Technology Inc. Huarui (Huizhou) Co., Ltd. Ningbo Formosa Epitaxy Incorporation Jiangsu Canyang Optoelectronics Ltd. Lextar Electronics (Suzhou) Corp.	Developing, manufacturing and sale of LED application products Research and development, manufacturing and sale of LED packaging; research and development, manufacturing and sale of backlight module, lighting modules and accessories Sales of LED chips Manufacturing and sales of LED wafers and chips Manufacturing and sales of LED wafers, chips, packages and modules	$ 75,048 479,839 6,754 5,902,624 3,722,205	2 2 2 2 2	$ 7,818 215,687 56,843 2,578,552 3,585,860	$ - - - - -	$ - - - - -	$ 7,818 215,687 56,843 2,578,552 3,585,860	$ - - - 45,772 72,649	- - - 95.66 100.00	$ - - - 44,477 72,649	$ - - - 1,575,026 3,654,883	$ - - - - -	2(3) 2(3) 2(3) 2(3) 2(2)

Table 11-2

Investee in Mainland China	Main business activities	Paid-in capital	Investment method （Note 1）	Accumulated amount of remittance from Taiwan to Mainland China as of January 1, 2022	Amount remitted from Taiwan to Mainland China/ Amount remitted back to Taiwan for the year ended December 31,2022	Amount remitted from Taiwan to Mainland China/ Amount remitted back to Taiwan for the year ended December 31,2022	Accumulated amount of remittance from Taiwan to Mainland China as of December 31,2022	Net income of investee for the year ended December 31, 2022	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the year ended December 31, 2022	Book value of investments in Mainland China as of December 31,2022	Accumulated amount of investment income remitted back to Taiwan as of December 31, 2022	Footnote
					Remitted to Mainland China	Remitted back to Taiwan
Lextar Electronics (Xiamen) Co.,Ltd. LEADSTAR Micro- Crystal Display Corporation (JiangSu) Ltd. Shanghai Welight Electronic Co., LTD.	Manufacturing and sales of LED packages and modules Developing, manufacturing and sales of LED packages, modules and related applications Wholesale and export and import of LED and related electronic products	$ 32,759 1,322,400 4,695	2 1 2	$ 32,759 391,909 4,695	$ - 133,906 -	$ - - -	$ 32,759 525,815 4,695	($ 3,179) ( 359,037) 1,228	100.00 33.63 51.16	($ 3,179) ( 132,149) 1,228	$ 8,992 342,548 364	$ - - -	2(2) 2(3) 2(2)

Table 11-3

Companyname	Accumulated amount of remittance from Taiwan to Mainland China as of December 31, 2022	Investment amount approved by the Investment Commission of the Ministry of Economic Affairs (MOEA)	Ceiling on investments in Mainland China imposed by the Investment Commission of MOEA
Epistar Corporation Lextar Electronics Corporation	$ 12,682,757 $ 4,167,894	$ 13,816,621 $ 4,577,180	$ 24,589,144 $ 5,863,530

• Note 1: The investments are classified in three types; they are numbered as follows:

• Direct investment in Mainland China companies;

• Through investing in an existing company in the third area, which then invested in the investee in Mainland China.

• Note 2: Investment income or loss in this period:

The bases for recognition of investment income or loss are classified into four types; they are numbered as follows:

1. The financial statements that are audited by the international accounting firm which has a cooperative relationship with the R.O.C. accounting firm;

2. The financial statements that are audited by the R.O.C. parent company’s independent auditors;

3. The financial statements that are not audited by the independent auditors;

4. Note 3: The amount disclosed was based on Investment Commission, MOEA Regulation No. 09704604680 announced on August 29, 2008. Note 4: The numbers in the table shall be expressed in NTD. Foreign currencies shall be translated into NTD at the exchange rate prevailing on the financial reporting date.

Note 5: The ‘amounts’ are expressed in thousands of New Taiwan dollars.

• Note 6: The shareholding of LEADSTAR Micro-Crystal Display Corporation (JiangSu) Ltd. has not been deducted due to the part of the disposal in 2023.

According to the MOEA Regulation No. 11200009840 announced on January 30, 2023, the accumulative amount of investment in mainland China can be deducted in USD 2,952,514.59.

Table 11-4

Table 12

ENNOSTAR INC.

Significant transactions conducted with investees in Mainland China directly or indirectly through other companies in the third areas

Year ended December 31, 2022

Expressed in thousands of NTD

(Except as otherwise indicated)

Investee in Mainland China	Sale(purchase)	Sale(purchase)	Propertytransaction	Propertytransaction	Accounts receivable (payable)	Accounts receivable (payable)	Provision of endorsements/guarantees or collaterals	Provision of endorsements/guarantees or collaterals		Financing	Financing		Others
	Amount	%	Amount	%	Balance at December 31,2022	%	Balance at December 31,2022	Purpose	Maximum balance during the year ended December 31, 2022	Balance at December 31, 2022	Interest rate	Interest during the year ended December 31, 2022
LEADSTAR Micro-Crystal Display Corporation (JiangSu) Ltd. Lextar Electronics (Chuzhou) Corp. Jiangsu Canyang Optoelectronics Ltd. Shenzhen Epikylin Optoelectronics Co.,Ltd Episky Corporation (Xiamen) Ltd. Epicrystal (Changzhou) Co., Ltd. Shanghai Welight Electronic Co., LTD Episky Corporation (Xiamen) Ltd. Epicrystal (Changzhou) Co., Ltd. Lextar Electronics (Chuzhou) Corp.	$ 12,858 48,083 91,927 549,080 1,415,512 223,855 141,183 ( 253,011) ( 962,056) ( 2,662,953)	0.06 0.23 0.43 2.57 6.63 1.05 23.15 (1.18) (4.51) (78.63)	$ - - 238,893 - - - - - - -	- - 14.22 - - - - - - -	$ 28,550 3,738 16,799 247,976 708,911 15,064 65,004 ( 29,414) ( 309,358) ( 461,393)	0.05 0.01 0.03 0.46 1.32 0.03 44.34 (0.05) (0.57) (65.28)	$ - - - - 368,520 - - - - -	- - - - - - - - - -	$ - - - - 70,294 - - - - -	$ - - - - 68,765 - - - - -	- - - - 2.86% - - - - -	$ - - - - 1,905 - - - - -	- - - - - - - - - -

Table12-1

ENNOSTAR INC. Major Shareholders Information December 31, 2022

Table 13

MajorShareholders	Shareholding	Shareholding
	NumberofSharesHeld	ShareholdingRatio
AUO Corporation	93,568,898	12.39

Table 13-1

ENNOSTAR INC. STATEMENT OF CASH AND CASH EQUIVALENTS

DECEMBER 31, 2022

(Expressed in thousands of New Taiwan dollars)

Statement1

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Item Description Amount
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Cash Bank deposits Demand deposits－NTD －USD USD 385 thousand at exchange rate of 30.71 －CNY CNY 19 thousand at exchange rate of 4.408 Time deposits－NTD Bonds sold under repurchase agreement－NTD	149,670 $ 1,181 82 500,000 40,000 690,933 $

Statement1,Page1

ENNOSTAR INC.

STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD FOR THE YEAR ENDED DECEMBER 31, 2022

(Expressed in thousands of New Taiwan dollars)

Statement2

Statement2
Name	BeginningBalance		Additions(Reduction)		Gain (loss) on investments Shares Percentage of Ownership 958,851 $ 1,116,479,188 100% 431,257) ( 514,916,380 100% 7,576) ( 6,922,000 75.96% 200,375) ( 115,000,000 100% 48,708) ( 44,000,000 100% 17) ( 27,000,000 100% 17) ( 27,000,000 100% 19) ( 100,000 100% 122,088) ( 56,200,000 17.99% 16,149) ( 23,799,000 7.92% 65,535) ( 9,028,000 8.15% EndingBalance		Amount	Market Value or Net Assets Value		Collateral
	Shares	Amount	Shares	Amount (Note1)				Unit Price (inNTD)	Total Amount
Epistar Corporation 1,088,701,410 Lextar Electronics Corporation 514,916,380 Amengine Corporation 3,100,000 Harvestar Investment Corp. 65,000,000 Calystar Investment Corp. 29,000,000 Precistar Investment Corp. - Praistar Investment Corp. - Manastar Investment Corp. - Unikorn Semiconductor Corpora - Tyntek Corporation 23,799,000 GCS Holdings, Inc. 9,028,000		39,027,656 $ 11,619,154 8,193 676,611 289,866 - - - - 634,214 451,710	27,777,778 - 3,822,000 50,000,000 15,000,000 27,000,000 27,000,000 100,000 56,200,000 - -	216,726) ($ 35,008) ( 25,130 373,508 167,905 49,021 49,021 1,000 301,305 23,968) ( 25,272		100% 100% 75.96% 100% 100% 100% 100% 100% 17.99% 7.92% 8.15%	39,769,781 $ 11,152,889 25,747 849,744 409,063 49,004 49,004 981 179,217 594,097 411,447	35.62 $ 21.66 3.72 7.39 9.30 1.81 1.81 9.81 3.19 16.60 39.00	39,769,781 $ 11,152,889 25,747 849,744 409,063 49,004 49,004 981 179,217 395,063 352,092	None None None None None None None None None None None

Note1: Including investments of additions, Cumulative translation differences of foreign operations, Unrealised gains (losses) from financial assets measured at fair value through other comprehensive income, cash dividend paid and except Subsidiary holds shares of parent company.

Statement2,Page1

ENNOSTAR INC. STATEMENT OF CHANGES IN PROPERTY, PLANT AND EQUIPMENT FOR THE YEAR ENDED DECEMBER 31, 2022

(Expressed in thousands of New Taiwan dollars)

Statement3

Statement3
Item		BeginningBalance	Addition	Decrease Transfer - $ - $ - 6,384 - 6,384) ( - $ - $	EndingBalance 882 $ 11,062 - 11,944 $
Office equipment Leasehold improvements Construction in progress and equipment to be inspected		414 $ 4,678 5,136 10,228 $	468 $ - 1,248 1,716 $

Statement3,Page1

ENNOSTAR INC.

STATEMENT OF CHANGES IN ACCUMULATED DEPRECIATION OF PROPERTY, PLANT AND EQUIPMENT FOR THE YEAR ENDED DECEMBER 31, 2022

(Expressed in thousands of New Taiwan dollars)

Statement4

Statement4
Item		BeginningBalance		Addition		Decrease		EndingBalance
Accumulated depreciation: Office equipment Leasehold improvements		32 $ 39 71 $		91 $ 804 895 $		- $ - - $		123 $ 843 966 $

Statement4,Page1

ENNOSTAR INC. STATEMENT OF SHORT-TERM BORROWINGS DECEMBER 31, 2022

(Expressed in thousands of New Taiwan dollars)

Statement5

Statement5
Nature	Description		EndingBalance ContractPeriod 100,000 $ 2022/06/16~2024/06/16	Range of Interest Rate	CreditLine Collateral 800,000 $ None	Note
Unsecurred borrowings	Unsecurred borrowings			1.86%

Statement5,Page1

ENNOSTAR INC.

SUMMARY STATEMENT OF CURRENT PERIOD EMPLOYEE BENEFITS, DEPRECIATION, DEPLETION AND AMORTIZATION EXPENSES BY FUNCTION

FOR THE YEAR ENDED DECEMBER 31, 2022

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

Statement6

Statement6
Nature Function	Year ended December 31, 2022			Year ended December 31, 2021
	Classified as Operating Costs	Classified as Operating Expenses	Total	Classified as Operating Costs	Classified as Operating Expenses	Total
Employee Benefit Expense
Wages and salaries	118,995	-	118,995	157,070	-	157,070
Labour and health insurance fees	8,323	-	8,323	6,275	-	6,275
Pension costs	4,001	-	4,001	3,444	-	3,444
Directors'remuneration	12,610	-	12,610	30,032	-	30,032
Other personnel expenses	3,724	-	3,724	2,926	-	2,926
Depreciation Expense	895	-	895	71	-	71
Depletion Expense	-	-	-	-	-	-
Amortisation Expense	-	-	-	-	-	-

Note:

1. As at December 31, 2022 and 2021, the Company had 80 and 69 employees, including 6 and 8 non-employee directors.

2. A company whose stock is listed for trading on the stock exchange or over-the-counter securities exchange shall additionally disclose the following information ：

3. (1) Average employee benefit expense in current year $1,825. ((Total employee benefit expense of current year-Total directors’ compensation of current year) / (Number of employees of current year-Number of non-employee directors of current year))

4. Average employee benefit expense in previous year $2,811. ((Total employee benefit expense of previous year-Total directors’ compensation of previous year) / (Number of employees of previous year-Number of non-employee directors of previous year))

5. (2) Average employees salaries in current year $1,608. (Total wages and salaries of current year/ (Number of employees of current year-Number employee of non- directors of current year))

Average employees salaries in previous year $2,604. (Total wages and salaries of previous year/ (Number of employees of previous year-Number employee of non- directors of previous year))

Statement6,Page1

ENNOSTAR INC.

SUMMARY STATEMENT OF CURRENT PERIOD EMPLOYEE BENEFITS, DEPRECIATION, DEPLETION AND AMORTIZATION EXPENSES BY FUNCTION (Cont.)

FOR THE YEAR ENDED DECEMBER 31, 2022

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

Statement6

• (3) Adjustments of average employees salaries -38%. ((Average wages and salaries of current year-Average wages and salaries of prior year)/Average wages and salaries of prior year)

• (4) The supervisors' remuneration for the years ended December 31, 2022 and 2021 were $0 and $5,543.

Description:

1. The number of employees described in Note to this form should be calculated by using average number of employees and the basis of calculation was the same as the employee benefits expenses and employees’ salaries.

2. According to IAS19, employees may provide services in a full-time, part-time, permanent, irregular or temporary manner, including directors and other management personnel. Therefore, “employees” in this form include directors, managers, general employees and contract hires, etc., but not including supervisors, dispatched manpower, labor contracting or business outsourcing personnel.

3. 3.“Directors’ remuneration” refers to the remuneration received by all directors, retirement pension, director’s remuneration and business execution expenses, etc., but does not include employee directors’ salary, labor and health insurance.

4. 4.“Supervisors’ remuneration” refers to the remuneration received by all supervisors, supervisors’ remuneration and business execution expenses, etc.

Statement6,Page2