GCE - Annual Report 2023 | FinancialReports.eu

Stock Code: 2368

Gold Circuit Electronics 2023 Annual report

Publish Date: April 1, 2024

Annual report inquiry website: http://mops.twse.com.tw/

http://www.gce.com.tw

I. Company Spokesperson: Name: Chen-Jung Yang Title: Director of Legal Department Tel: (03)461-2541 #22588 E-mail: [email protected] Deputy Spokesperson: Name: Chang-Chin Yang Title: Vice President, Finance Department Tel: (03)461-2541 #22500 E-mail: [email protected]

II. Address and telephone number of the company and factory: Zhongli Factory Address: No. 113, Xiyuan RD., Jhongli Industrial Park, Jhongli District, Taoyuan City 320, Taiwan (R.O.C.) Tel: (03)461-2541

Suzhou Plant Address: No. 238, Jinfeng Road, New District, Suzhou City Tel: 86-512-66612238

Changshu Plant No. 1 Address: No. 9, Jiulong Rd., Changshu Southeast Economic Development Zone, Jiangsu Province Tel: 86-512-52355235

Changshu Plant No. 2 Address: No. 816, southeast Avenue, Changshu hi tech Industrial Development Zone, Jiangsu Province Tel: 86-512-52358899

III. Name and address of stock agency:

Name: CTBC Bank Co., Ltd., Agency Department Address: 5F, No. 83, Sec. 1, Chongqing S. Rd., Taipei City Tel: (02)6636-5566 Website: www.chinatrust.com

IV. CPAs of the Financial Report for the Last Year:

Name: Chao-Ling Chen and Chun-Yi Chang CPA firm: Deloitte Taiwan Address: 20F, No. 100, Songren Road, Xinyi District, Taipei City Tel: (02)2725-9988 Website:www.deloitte.com.tw

V. Name(s) of the exchange(s) where the securities of the Company are traded offshore, and the method(s) by which the information of the offshore securities is accessed: No overseas securities are issued.
VI. Company website: http://www.gce.com.tw

	Table of Contents
ONE	Letter to Shareholders ------------------------------------------------- --------------------------	1
	Business Report and Overview of This Year’s Business Plan --------------------------	1
TWO	Company Profile -------------------------------------------------------- --------------------------	4
	I. Date of Establishment ------------------------------------------------- --------------------------	4
	II. Company History ------------------------------------------------------ --------------------------	4
THREE	Corporate Governance Report ------------------------------------- --------------------------	10
	I. Organization System ------------------------------------------------ --------------------------	10
	II. Profile of Directors, Supervisors, and Main Managers ------- --------------------------	12
	III. Status of Corporate Governance --------------------------------- --------------------------	32
	IV. Public Expenditure on CPAs --------------------------------------- --------------------------	87
	V. Information on Replacement of CPAs --------------------------- --------------------------	88
	IV. Prior Service at Firms or Their Affiliates ----------------------------------------------------	88
	VII. Change in Transfer and Pledge of Equity -------------------------------------------------	88
	VIII. Relationship Among Related Partners According to Financial Accounting Standard 6-	90
	IX. Number of Shares Held by Directly or Indirectly Controlled Businesses in Same	91
	Reinvested Business and Consolidated General Holding Ratio --------------------
FOUR	Capital and Shares ------------------------------------------------------ --------------------------	92
	I. Source of Capital Stock ----------------------------------------------- --------------------------	92
	II. Shareholder Structure ------------------------------------------------ --------------------------	94
	III. Decentralization of Equity ------------------------------------------ --------------------------	95
	IV. List of Major Shareholders ------------------------------------------- --------------------------	95
	V. Price per Share, Net Worth, Earnings, Dividends, and Related Information over Past	96
	Two Years --------------------------------------------------------------------------------------------
	VI. Company’s Dividend Policy and Implementation --------------------------------------------	96
	VII. Impacts of Free Share Assignment Intended Through Current Shareholders’ Meeting	97
	on Company's Operational Performance and Earnings per Share ----------
	VIII. Remuneration for Employees and Directors/Supervisors ----------------------------------	97
	IX. Buyback of Company’s Shares ------------------------------------------------------------------	99
	X. Corporate Bonds ------------------------------------------------------------------------------------	100
	XI. Preferred Stock -------------------------------------------------------------------------------------	101
	XII. Global Depositary Receipt ----------------------------------------------------------------------	101
	XIII. Employee Share Subscription Warrants ------------------------------------------------------	101
	XIV. M&A or Acceptance of Transferred Shares of Another Company for Issuance of New	101
	Shares ---------------------------------------------------------------------------------------------
	XV. Implementation of Capital Utilization Plan ---------------------------------------------------	102
FIVE	Operational Overview -------------------------------------------------	103

	I. Scope of Operation Contents -----------------------------------------------------------------	103
	II. Market and Production/Distribution Overview --------------------------------------------	110
	III. Employees ---------------------------------------------------------------------------------------	119
	IV. Information on Environmental Protection Expenditure ------- --------------------------	120
	V. Labor-management Relations ----------------------------------------------------------------	120
	VI. Cyber Security Management ----------------------------------------------------------------	125
	VII. Important Contracts ---------------------------------------------------------------------------	130
SIX	Financial Overview --------------------------------------------------------------------------------	131
	I. Condensed Balance Sheet and Statement of Income of Past Five Years ----------	131
	II. Financial Analysis of Past Five Years ----------------------------- --------------------------	137
	III. Supervisor’s Review Report of Financial Report of Last Year ------------------------	143
	IV. Financial Report of Last Year -----------------------------------------------------------------	144
	V. Consolidated Financial Report of Parent Company and Subsidiaries Audited and	242
	Attested by CPAs of Last Year -------------------------------------------------------------
	VI. Financial Difficulties Encountered by the Company and Its Affiliates over Past Year up	335
	to the Date the Annual Report Was Printed -----------------------------------------
SEVEN	Discussion and Analysis of Financial Standing and Operational Achievements and	336
	Risk Management ------------------------------------------------------
	I. Financial Standing ----------------------------------------------------- --------------------------	336
	II. Operational Achievements ----------------------------------------- --------------------------	336
	III. Cash Flow ------------------------------------------------------------- --------------------------	338
	IV. Impacts of Major Capital Expenditure on Finance over Past Year ------------------	338
	V. Main Reasons for Profits or Losses of Latest Reinvestment Policy, Improvement Plan,	338
	and Investment Plan for the Coming Year ---------------------------------------------
	VI. Analysis and Assessment of Risk Matters -------------------- --------------------------	339
	VII. Other Important Matters -------------------------------------------- --------------------------	344
EIGHT	Special Notes ------------------------------------------------------------- --------------------------	345
	I. Information of Affiliates ------------------------------------------------ --------------------------	345
	II. Private Placement Securities over Past Year up to the Date the Annual Report was	349
	Printed -------------------------------------------------------------------------------------------
	III. Status of Holding or Disposal of the Company’s Shares by Subsidiaries over Past Year	350
	up to the Date the Annual Report was Printed ----------------------------------
	IV. Other Matters Requiring Supplementary Information ----------------------------------	350
	V. Matters with Significant Impacts on Shareholder Equity or Securities over Past Year up	350
	to the Date This Annual Report was Printed --------------------------------------

ONE. Letter to Shareholders:

Business Status in 2023

Clarification:

As the pandemic eased off, economic activities of the countries have gradually returned to normal. During the pandemic, most of the electronics companies period a lot of stocks in response to the increase in work-from-home and distance learning business models. Adjustment of inventories was continued in the first half of 2023.

In Q1 of 2023, most of the financial experts were not optimistic about the growth of the electronics industry in 2023, and expected a significant decline in the year compared to 2022. It was not until March 2023 that OpenAI launched the new generation of ChatGPT, which instantly changed their perspectives on AI related industries. The outlook of the electronics industry and the launch of faster and more diversified GPUs by chip providers have made most experts optimistic about the future of AI products. The Company’s main products are servers and network communication boards. As AI products are promising, the Company’s orders have grown rapidly in the second half of the year.

The 2023 business results and the outlook in 2024 are as follows:

I. Business results in 2023:

(I) Business overview:

The total sales value of the 2023 revenue in Taiwan was NT$29,428,588 thousand, a decrease of NT$2,129,803 thousand or 6.75% compared to 2022. The sales volume was 16,388,950 square feet, a decrease of4,882,657 square feet or 22.95% from the same period in 2022.

The total sales value of the 2023 consolidated revenue in Taiwan was NT$30,043,950 thousand, a decrease of NT$2,741,114 thousand or 8.36% compared to 2022.

(II) Profit and loss (Taiwan):

Gross profit: Decrease by 8.19% or NT$256,775 thousand in 2023 compared to 2022

Net profit before tax: Decrease by 17.20% or NT$898,869 thousand in 2023 compared to 2022

Item	2022	2023	Increase/decrease	Rate of change(%)
Operatingincome	31,558,391	29,428,588	(2,129,803)	(6.75%)
Operatingcost	28,424,315	26,551,287	(1,873,028)
Grossprofit	3,134,076	2,877,301	(256,775)	(8.19%)

Operatingexpenses	1,453,610	1,402,859	(50,751)
Othergains and losses	17,934	36,852	18,918
Net operating profit	1,698,400	1,511,294	(187,106)	(11.02%)
Netprofit(loss)before tax	5,224,759	4,325,890	(898,869)	(17.20%)
Current netprofit(loss)	4,567,875	3,528,592	(1,039,283)	(22.75%)

(III) Profit and loss (consolidated):

Gross profit: Decrease by 11.51% or NT$1,004,292 thousand in 2023 compared to 2022

Net profit before tax: Decrease by 18.32% or NT$1,170,426 thousand in 2023 compared to 2022

Item	2022	2023	Increase/decrease	Rate of change(%)
Operatingincome	32,785,064	30,043,950	(2,741,114)	(8.36%)
Operatingcost	24,056,976	22,320,154	(1,736,822)
Grossprofit	8,728,088	7,723,796	(1,004,292)	(11.51%)
Operatingexpenses	2,705,292	2,624,581	(80,711)
Othergains and losses	13,916	36,852	22,936
Net operating profit	6,036,712	5,136,067	(900,645)	(14.92%)
Netprofit(loss)before tax	6,388,333	5,217,907	(1,170,426)	(18.32%)
Current netprofit(loss)	4,567,875	3,528,592	(1,039,283)	(22.75%)

(IV) 2023 budget execution: Forecast not compiled
(V) Analysis of financial income/expenditure and profitability:

Item	2022	2023
Net operating profit(loss)	6,036,712	5,136,067
Net income after tax	4,567,875	3,528,592
Average total assets	27,510,442	31,570,921
Average total shareholders’ equity	12,863,066	15,577,572
Comparison ofprofitability:
1. Return on assets(%)	16.87%	11.48%
2. Return on equity (%)	35.51%	22.65%
3. Profit margin(%)	13.90%	11.74%
4. Net earnings(loss) per share	8.86 元	7.25 元

II. Business plan for 2024

With the demand for AI products, the technology and speed of servers and network communication boards have become more demanding. The Company’s

output and equipment can no longer meet the needs of the customers since the second half of 2023. Hence, the Zhongli factory began to expand the scale and upgrade the equipment at the same time. It is expected that new production capacity will come out in June 2024 and the revenue of the Company may have the opportunity to reach a new high.

In addition, in order to meet the needs of the customers, the Company began to plan the construction of a factory in Thailand in 2023 and has successfully purchased the land lot and awarded civil engineering contracts as planned. The mass production is expected in the first half of 2025.

Chairman Chen-Tse Yang Manager Chen-Tse Yang

Accounting Supervisor: Chang-Chin Yang

Two. Company Profile

I. Company Profile

(I) Date of Establishment: September 5, 1981
(II) Company History:

1981	The Company was established in September with a capital of NT$10
	million. The Plant is located in Taoyuan City, with an area of 837.6
	square meters. The Company is a limited company and mainly
	produces printed circuit boards.
1982	Obtained American UL certification in June.
1984	The capital was increased to NT$30 million, and the Company's
	form was changed to a joint stock limited company.
1986	Completed the research and development of multilayer boards.
1987	The capital is increased to NT$60 million for the purchase of 503.7
	pings of land for offices, dormitories and factories.
1988	The capital was increased to NT$90 million for the purchase of
	231.4 square meters of land for offices, dormitories and factories.
	Purchased precision equipment of AOI and CAM.
	The production capacity was increased to 100,000 square feet per
	month.
1989	The capital was increased to NT$160 million and completed the first
	phase of expansion of the Taoyuan Plant.
	Started production of six-layer boards.
1990	The capital was increased to NT$198 million for purchasing 310.7
	pings of land for parking lots.
	The second phase of the expansion of Taoyuan Plant was completed.
	Started production of eight-layer boards.
1991	The capital was increased to NT$243.8 million, and the SEC
	approved the public offering.
	The production capacity reached 120,000 square feet per month.
1992	CommonWealth Magazine ranked the Company No. 816 among the
	top 1,000 manufacturing companies.
1993	The capital was increased to NT$300 million, with a production
	capacity of 150,000 square feet per month.
	Obtained ISO-9002 certification in June.
	Cooperate with China Computer in the planning by the Bureau of
	Industry to implement whole-plant automation.
	CommonWealth Magazine ranked the Company No. 681 among the
	top 1,000 manufacturing companies.
1994	Completed the whole-plant automation planning for the Bureau of
	Industry.
	The production capacity reached 180,000 square feet per month, and
	the business turnover in August exceeded NT$100 million for the
	first time.
	Acquired 152.5 square meters for the second plant and 42.7 square
	meters for the motorcycle parking area.

	CommonWealth Magazine ranked the Company No. 628 among the
	top 1,000 manufacturing companies.
1995	The production capacity reached 300,000 square feet per month, and
	the business turnover in September exceeded NT$220 million for the
	first time.
	Obtained NT$200 million major investment approval from the
	Bureau of Industry to increase the introduction of foreign labor.
	Acquired 459 square meters of land next to the second plant for
	parking lots and dormitories for foreign workers.
	CommonWealth Magazine ranked the Company No. 383 among the
	top 1,000 manufacturing companies.
1996	The capital was increased to NT$600 million. The business turnover
	in September exceeded NT$300 million for the first time.
	Purchased 8121.8 square meters of land in Jhongli Industrial Zone,
	and planned to expand production capacity of the whole plant.
	The Company was selected as a demonstration and counseling plant
	by the Bureau of Industry, and accepted counseling to establish the
	ISO-14001 system.
	CommonWealth Magazine ranked the Company No. 282 among the
	top 1,000 manufacturing companies, and No. 13 in business
	performance among the top 1,000 manufacturing companies.
1997	Production capacity reached 450,000 square feet per month in
	March.
	The capital was increased to NT$990 million in August, and the
	business turnover in October exceeded NT$500 million for the first
	time. Obtained ISO-14001 certification from the Commodity
	Inspection Bureau in October. Production capacity reached 600,000
	square feet per month in November.
	In December, the business turnover exceeded NT$600 million for the
	first time.
	CommonWealth Magazine ranked the Company No. 186 among the
	top 1,000 manufacturing companies.
	Ranked No. 132 among the 500 International Chinese Entrepreneurs.
1998	The Company’s stock was listed in March. The capital was increased
	to NT$1,773 million in June. Production capacity reached 900,000
	square feet per month in August.
	CommonWealth Magazine ranked the Company No. 174 among the
	top 1,000 manufacturing companies.
1999	Started the production and sales of 16-layer boards in March.
	Obtained QS-9000 certification in June.
	The capital was increased to NT$2,688,800,000 in July.
	In November, the business turnover exceeded NT$700,000,000 for
	the first time.
	CommonWealth Magazine ranked the Company No. 178 among the
	top 1,000 manufacturing companies.
2000	Started the production and sales of 20-layer boards in March.
	The capital was increased to NT$3,247,660,000 in August.

Started construction of Suzhou Plant in mainland China in October. In November, the business turnover exceeded NT$1,000,000,000 billion for the first time. CommonWealth Magazine ranked the Company No. 153 among the top 1,000 manufacturing companies. 2001 In March, President Mao-Hsiung Li retired and Ching-Pei Lin was promoted to Senior Vice President. Obtained TL 9000 certification in August. The capital was increased to NT$3,908,700,000 in August. In September, the construction of Zhongli Plant III was completed, which provides the private land for the drilling process and staff dormitories.

2002 In April, CEO Chao-Ying Chu joined the Company. A fire broke out in the Plant I on September 1. In October, Deputy Chairman Chiu-Ming Chen joined the Company. The capital was increased to NT$4,104,135,000 in October. 2003 In May, Mr. Chen-Nan Chen was appointed as the president of Suzhou Gold Circuit Electronics Ltd. In the second quarter, the 10-layer board products of Suzhou Gold Circuit Electronics Ltd. obtained customer certification. In the third quarter, Suzhou Gold Circuit Electronics Ltd. increased production capacity to 450,000 square feet.

Successfully imported the ORACLE ERP system in September. 2004 Issued NT$600 million of convertible corporate bonds in April. The capital was increased to NT$4,437,475,000 in July. Suzhou Gold Circuit Electronics Ltd. increased production capacity to 600,000 square feet. CommonWealth Magazine ranked the Company No. 182 among the top 1,000 manufacturing companies. 2005 The capital was increased to NT$4,889,168,110 in November. Increased investment in the Suzhou Plant to US$41 million and completed its expansion to 900,000 square feet. The Company’s net profit after tax exceeded NT$1 billion for the first time. CommonWealth Magazine ranked the Company No. 193 among the top 1,000 manufacturing companies. 2006 The capital was increased to NT$5,118,080,990 in June. In October, CEO Chao-Ying Chu retired and the position was concurrently taken by Deputy Chairman Chiu-Ming Chen. In the second quarter, the Suzhou Plant increased production capacity to 1,200,000 square feet. In the fourth quarter, the Changshu Plant increased production capacity to 300,000 square feet. CommonWealth Magazine ranked the Company No. 169 among the top 1,000 manufacturing companies.

2007 The production capacity of the Taiwan Plant was expanded to

	900,000 square feet per month.
	The Suzhou Plant increased production capacity to 1,500,000 square
	feet in the fourth quarter.
	The Changshu Plant increased production capacity to 1,200,000
	square feet in the fourth quarter
	CommonWealth Magazine ranked the Company No. 157 among the
	top 1,000 manufacturing companies.
2008	The capital was increased to NT$5,527,528,555 in July.
	The production capacity of the Taiwan Plant was expanded to
	1,000,000 square feet per month.
	Increased investment in the Changshu Plant to US$30.01 million.
	CommonWealth Magazine ranked the Company No. 163 among the
	top 1,000 manufacturing companies.
2009	Increased investment in the Suzhou Plant to US$68 million.
	The capital was increased to NT$5,691,758,410 in October.
	CommonWealth Magazine ranked the Company No. 188 among the
	top 1,000 manufacturing companies.
2010	Increased investment in the Suzhou Plant to US$98 million.
	In May, the 100%-invested grandson company acquired 100%
	equity of Hongjie Circuit (Changshu) Co., Ltd. for US$2. The
	monthly HDI production capacity reached 50,000 square feet at the
	end of the year.
	CommonWealth Magazine ranked the Company No. 219 among the
	top 1,000 manufacturing companies.
2011	Increased investment in Hongjie Circuit (Changshu) Co., Ltd. to
	US$13 million, and the monthly HDI capacity reached 200,000
	square feet at the end of the year.
	In November, cancelled 4,263 thousand treasury shares and reduced
	the corresponding capital; the capital after the reduction was
	NT$5,649,128,410.
	CommonWealth Magazine ranked the Company No. 210 among the
	top 1,000 manufacturing companies.
2012	In February, Hongjie Circuit (Changshu) Co., Ltd. changed its name
	to Changshu Gold Circuit Electronics Ltd.
	On April 19, a fire broke out in the electroplating line of Changshu
	Gold Circuit Electronics Ltd.
	Increased investment in Changshu Gold Circuit Electronics Ltd. to
	US$20 million.
	CommonWealth Magazine ranked the Company No. 219 among the
	top 1,000 manufacturing companies.

2013 On January 1, Mr. Ching-Pei Lin became the CEO of the Company. Increased investment in Changshu Gold Circuit Electronics Ltd. to US$33 million. CommonWealth Magazine ranked the Company No. 201 among the top 2,000 manufacturing companies. 2014 The consolidated revenue for the year exceeded NT$20 billion for the first time. CommonWealth Magazine ranked the Company No. 177 among the top 2,000 manufacturing companies.

	Ranked top 10 among listed companies in terms of average
	employee salary growth in 2014, and was awarded the "Salary
	Progress Award" of the Taiwan Stock Exchange.
2015	The three plants in mainland China undertook the automotive panel
	business.
	The copper plate embedded product was successfully developed.
	CommonWealth Magazine ranked the Company No. 174 among the
	top 2,000 manufacturing companies.
2016	In August, canceled 12,666 thousand treasury shares and reduced the
	corresponding capital; the capital after the reduction was
	NT$5,522,468,410.
	CommonWealth Magazine ranked the Company No. 172 among the
	top 2,000 manufacturing companies.
2017	The Audit Committee and Remuneration Committee were
	established in June.
	In November, Chairman Chang-Chi Yang and Deputy Chairman
	Chiu-Ming Chen retired, and Mr. Chen-Tse Yang was promoted to
	Chairman.
	In December, CEO Ching-Pei Lin retired.
	CommonWealth Magazine ranked the Company No. 181 among the
	top 2,000 manufacturing companies.
2018	On January 2, Mr. Sheng-Lang Huang became the CEO of the
	Company.
	In May, Mr. Sheng-Lang Huang resigned as CEO of the Company,
	and Mr. Chen-Tse Yang concurrently served as CEO.
	In October, cancelled 57,590 thousand treasury shares and reduced
	the corresponding capital; the capital after the reduction was
	NT$5,464,878,410.
	CommonWealth Magazine ranked the Company No. 173 among the
	top 2,000 manufacturing companies.
2019	Consolidated revenue in December again exceeded NT$2 billion
	since 2014.
	CommonWealth Magazine ranked the Company No. 177 among the
	top 2,000 manufacturing companies.
2020	Consolidated revenue in April hit a monthly record of NT$2.23
	billion.
	CommonWealth Magazine ranked the Company No. 146 among the
	top 2,000 manufacturing companies.
2021	The consolidated revenue in November exceeded NT$2.5 billion for
	the first time.
	The annual consolidated operating revenue reached a record high of
	NT$26.6 billion.
	CommonWealth Magazine ranked the Company No. 159 among the
	top 2,000 manufacturing companies.
2022	The consolidated revenue in May exceeded NT$3.0 billion for the
	first time.
	Capital reduction by 54,648,784 shares in cash was conducted in
	July; the capital after the reduction was NT$4,918,390,570.
	The annual consolidated operating revenue reached a record high of
	NT$32.8 billion.

	CommonWealth Magazine ranked the Company No. 130 among the
	top 2,000 manufacturing companies.
2023	Issued NT$4 billion of convertible corporate bonds in December.
	Started to construct the factory in Thailand in December.
2024	The consolidated revenue in January reached a record high of
	NT$3.4 billion in a single month.

Three. Corporate Governance Report

I. Organization system
(I) Organizational structure

==> picture [445 x 274] intentionally omitted <==

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

Shareholders’ Meeting
Committee/Audit Compensation Board of Directors
Committee
Audit Office
Chairman Chairman’s Office
Sustainable Development
Committee
CEO
President Factory President Factory President Factory Administration General Safety Management Project
Audit
Center
1 2
Thailand Plant Taiwan Plant Suzhou Plant Changshu Plant No Changshu Plant No Process Engineering Division Research and Development Division Design Engineering Center Quality Center Customer Service Center Equipment Engineering Center Industrial Engineering Center Information Technology Center Human Resources Center Administration Center Procurement Center Marketing & Sales Center President Marketing & Sales Center Finance Center Ethics Department
----- End of picture text -----

(II) Functions of each main department:

Name of	Main
		Main functions
department	responsibilities

Shareholders’ Meeting		■ The highest decision-making body of the Company. ■ Exercise powers in accordance with the Company Act and other relevant laws and regulations.
Audit Committee		■ Review the Company’s accounting system, financial position, financial reporting procedures, and operating procedures for major financial business activities ■ Review whether the Company’s financial report prepared is true, complete, and transparent ■ Examine whether the acquisition or disposal of assets, engaging in derivatives trading, loans to others, endorsement/guarantees provided to others, and mergers, demergers, and acquisitions or transfer of shares are in compliance with laws, administrative orders, and the Company’s internal regulations ■ Other duties as per the Articles of Association, corporate governance principles, or board resolutions
Remuneration Committee		■ Formulate and regularly review the performance evaluation of directors, supervisors and managers, and the policy, system, standards, and structure for their remuneration ■ Regularly evaluate and set the salary and remuneration of directors, supervisors, and managers
Audit Office	Ming-Yuan Wu, DeputyDirector	■ Audit and evaluate the internal control system, and put forth analyses and suggestions
Taiwan Plant	President	■ Responsible forprinted circuit board(PCB)manufacturingandquality, production

Name of	Main
		Main functions
department	responsibilities

	Chin-SungTsai	line management, productionplan formulation,and equipment maintenance
Suzhou Plant	President Chin-SungTsai	■ Responsible for printed circuit board (PCB) manufacturing and quality, production line management, productionplan formulation,and equipment maintenance
Changshu Plant No. 1	De-Ming Yang, President	■ Responsible for printed circuit board (PCB) manufacturing and quality, production line management, productionplan formulation,and equipment maintenance
Changshu Plant No. 2	De-Ming Yang, President	■ Responsible for printed circuit board (PCB) manufacturing and quality, production line management, productionplan formulation,and equipment maintenance
Thailand Plant	The plant is under construction. The managerial officer has not been assignedyet.	■ It is planned to take the responsibility for printed circuit board (PCB) manufacturing and quality, production line management, production plan formulation, and equipment maintenance
Quality Center	Senior Vice President Chung-Chih Lung	■ Execute quality control target plan, manage matters related to quality system operation and quality management comprehensively, and responsible for customer service
General Administration Office	Vice President Sheng-Hsien Lin	■ Plan and implement human resource management systems ■ Integrate and plan information systems ■ Plan and supervise the Company’s various environmental protection and occupational safetyissues,maintain agood work environment and employees’personal safety
Procurement Center	Ta-Kun Yang, Vice President	■ Provide high-quality, low-cost raw materials that meet the needs of the market and purchase materials and supplies
Marketing & Sales Center	President Hsi-Kuei Huang	■ Manage the Company’s product marketing and customer development comprehensively
Finance Center	Vice President Chang-Chin Yang	■ Responsible for financial operation and planning, fund management, and various accountingand taxation services

II. Information on Directors, Supervisors, President, Vice Presidents, Assistant Vice Presidents, and Heads of Departments and Branches:

(I) Directors and supervisors

																	Unit: share;% April 1,2024	Unit: share;% April 1,2024	Unit: share;% April 1,2024	Unit: share;% April 1,2024
Job title (Note 1)	Name	Gender Age	Nationality or place of registration	Date of election (accession) Date	Term of office	Date first elected	Shareholding upon elected		Current shareholding		Current shareholdings by spouse and minor child		Shareholding by nominee arrangement		Main education (experience)	Current positions held concurrently at the Company and other companies	Spouse or relative within the second degree of kinship of other managers, directors,or supervisors			Remarks
							Number of shares	Shareholding ratio	Number of shares	Shareholding ratio	Number of shares	Shareholding ratio	Number of shares	Shareholding ratio			Job title	Name	Affiliation
Chairman and President	Chen-Tse Yang	Male Aged 51–60	R.O. C	07.20.2011	3 years	May 6, 1996	19,234,685	3.52%	17,653,216	3.59%	─	─	─	─	Department of Business Administration, Chinese Culture University MBA, Pace University, New York Business Specialist, Deputy Manager, Manager, Director, Assistant Vice President, and Senior Vice President, Gold Circuit Electronics Ltd. Chairman (current), Gold Circuit Electronics Ltd.	Chairman, Suzhou Gold Circuit Electronics Ltd., Changshu Gold Circuit Electronics Ltd., and Changshu Gold Circuit Technology Co., Ltd. Executive Director, Gold Circuit Electronics (Thailand) Co., Ltd. Chairman, King Hsiang Investment Co., Ltd. Chairman, Jiahui InvestmentCo.,Ltd.	Director Director	Chang-Chih Yang Chen-Jung Yang	Father and son Brother and sister	Note 3
Director and shareholder		Male Aged 71–80	R.O.		3 years	September	107,258,01								Business Administration Department, Tamsui Vocational School Chairman (former), Gold Circuit Electronics Ltd.	Director, Suzhou Gold Circuit Electronics Ltd., Changshu Gold Circuit Electronics Ltd., and Changshu Gold Circuit Technology Co.,	Chairman	Chen-Tse Yang	Father and son
holding at least 10% of the shares	Chang-Chih Yang		C.	07.20.2011		5, 1981	9	19.63%	96,622,217	19.65%	27,651,870	5.62%	11,012,760	2.24%		Ltd. Director, King Hsiang Investment Co., Ltd. Chairman, Jiahui InvestmentCo.,Ltd.	Director	Chen-Jung Yang	Father and daughter	None
		Male Aged 61–70			3 years										Department of Mechanical Engineering, Tamkang	Special Assistant to the Chairman, Suzhou
															University	Gold Circuit Electronics Ltd.
Director and			R.O.			January 6,									Deputy Manager of Manufacturing, Design		Finance	Chang-Chin
Special Assistant	Chang-Chin Yang		C.	07.20.2011		1987	2,984,110	0.55%	2,652,400	0.54%	─	─	─	─	Engineering, and Production Management; Manager, Computer Department; Special Assistant		Vice President	Yang	Brothers	None
															to the Chairman, Gold Circuit Electronics Ltd.
															Director, GoldCircuit Electronics Ltd.
		Female Aged 51–60			3 years										Department of Law, National Chung Hsing	Director, Suzhou Gold Circuit Electronics
															University	Ltd., Changshu Gold Circuit Electronics Ltd.,		Chang-Chih	Father and
Director	Chen-Jung Yang		R.O.	07.20.2011		12.16.1997	7,157,945	1.31%	6,442,150	1.31%	180,783	0.04%	─	─	Legal Manager, Gold Circuit Electronics Ltd.	and Changshu Gold Circuit Technology Co.,	Director	Yang	daughter	None
and Director			C.												Spokesman Gold Circuit Electronics Ltd.	Ltd.	Chairman	Chen-Tse	Brother and
															, Director, Gold Circuit Electronics Ltd.	Director, King Hsiang Investment Co., Ltd.		Yang	sister
																Chairman, Jiahui InvestmentCo.,Ltd.
	King Hsiang	─	R.O.		3 years	06.25.2014	5,723,750	1.05%	5,151,375	1.05%	─	─	─	─	─	─
	Investment Co., Ltd.		C.	07.20.2011													None	None.	None.	None.
Director		Male Aged 71–80			3 years	06.12.2017	─	─	─	─	─	─	─	─	MBA, Indiana University, USA	Representative of the institutional director of
	Representative:		R.O.	07.20.2011											President, Taishin Bank	Chang Wah Technology Co., Ltd.	None	None.	None.	None.
	Jung-Tung Tsai		C.												President Ta Chong Bank	Independent Director Ali Corporation
															, Director, GoldCircuit Electronics Ltd.	,
		Female Aged 71–80	R.O.		3 years	June 11,									Ming Chuan Commercial College	None
Director	Lien-Mei Lin		C.	07.20.2011		2018	171,449	0.03%	154,304	0.03%	─	─	─	─	Business Department, Compeq Manufacturing Co.,Ltd.		None.	None.	None.	None.
		Male Aged 71–80			3 years										Industrial Engineering Department, Chung Yuan	None
															Christian University
															EMBA, Sun Yat-Sen University (Guangzhou)
Independent	Jen-Jou Hsieh		R.O.	07.20.2011		06.12.2017	─	─	─	─	212,018	0.04%	─	─	President, Commodore International		None.	None.	None.	None.
Director			C												Chairman Shenzhen Huamao Electronics Co
			.												, ., Ltd.
															Independent Director, Gold Circuit Electronics
															Ltd.
		Male Aged 81–90			3 years										Department of Business Management, Tatung	None
															University
															Financial Manager, Chi Wei Technology Co.,
Independent	Wen-Shih Chiang		R.O.	07.20.2011		06.12.2017	4,765	0.00%	4,288	0.00%	─	─	─	─	Limited.		None.	None.	None.	None.
Director			C												Financial Manaer and Audit Manaer Gold
			.												g g, Circuit Electronics Ltd. (retired in 2001)
															Independent Director, Gold Circuit Electronics
															Ltd.
		Female Aged 61–70			3 years										Department of Law, National Chung Hsing	Supervisor, Le Young Construction Co., Ltd.
															University	and Yueyang Construction Co., Ltd.
Independent	Tzu-Ying Lin		R.O.	07.20.2011		06.12.2017	─	─	─	─	─	─	─	─	Judge of Taoyuan District Court		None	None.	None.	None.
Director			C												Lawer of Tzu-Yin Lin Law Firm
			.												y g Independent Director, Gold Circuit Electronics
															Ltd.
Independent	Shyr-Chyr Chen	Male Aged	R.O. C.	06.14.2023 (Note 2)	3 years	06.14.2023	─	─	─	─	27,000	0.01%	─	─	Department of Medicine, National Taiwan University	Professor of School of Medicine, National Taiwan University	None	None.	None.	None.
Director

Job title (Note 1)	Name	Gender Age	Nationality or place of registration	Date of election (accession) Date	Term of office	Date first elected	Shareholding upon elected	Shareholding upon elected	Current shareholding	Current shareholding	Current shareholdings by spouse and minor child	Current shareholdings by spouse and minor child	Shareholding by nominee arrangement	Shareholding by nominee arrangement	Main education (experience)	Current positions held concurrently at the Company and other companies	Spouse or relative within the second degree of kinship of other managers, directors,or supervisors	Spouse or relative within the second degree of kinship of other managers, directors,or supervisors	Spouse or relative within the second degree of kinship of other managers, directors,or supervisors	Remarks
							Number of shares	Shareholding ratio	Number of shares	Shareholding ratio	Number of shares	Shareholding ratio	Number of shares	Shareholding ratio			Job title	Name	Affiliation
		61–70													EMBA, College of Management, National Taiwan University President, Taiwan Society of Emergency & Critical Care Medicine Superintendent and deputy superintendent, National Taiwan University Hospital Independent Director, Gold Circuit Electronics Ltd.

Note 1: Names of institutional shareholders and their representatives shall be listed separately (if the representatives are institutional shareholders, the names of said institutional shareholders shall be indicated) in Table 1 below.

Note 2: Director Shyr-Chyr Chen was newly elected on June 14, 2023.

Note 3: The Company’s Chairman and the President or the persons with equivalent positions (the top-level managers) are the same person, spouse, or relatives within the first degree of kinship to each other, the reason, reasonableness, necessity, and countermeasures shall be specified (such as increasing the number of independent directors or more than half of the directors not serving as employees or managers concurrently).

In November 2017, Mr. Chen-Tse Yang took over as the Company’s CEO. He has served in the Company for nearly 30 years and has rotated between jobs in different departments. Although the Chairman and the CEO are the same person, he has the largest shareholding percentage and has the ability to communicate with the leaders of various departments. The directors believe that it is the best arrangement for the Company at present, and the Company makes profit every year. Since he assumed the position, the Company’s revenue and profit have hit a record high. Once the succession transition period is stabilized, the Company will select new top-level managers from the existing ones.

(II) If the director or supervisor is a representative of institutional shareholder, the name of the institutional shareholder and the names of the top ten shareholders of the institutional shareholder and their shareholding ratio shall be stated

Table 1: Major Shareholders of Institutional Shareholders

April 1, 2024

	Table 1: Major Shareholders of Institutional Shareholders April 1, 2024	Table 1: Major Shareholders of Institutional Shareholders April 1, 2024
Name of institutional shareholder(Note1)	Major shareholder of institutional shareholder (Note 2)
Investment in King Hsiang Investment Co.	GOLD CIRCUIT ELECTRONICS LTD.	99.997%
	Chang-Chih Yang	0.0005%
	Jui-Ching Li	0.0005%
	Chen-TseYang	0.0005%
	Chen-JungYang	0.0005%
	Chang-WangYang	0.0005%
	Tung-YangYang	0.0005%

Note 1: Where a director or supervisor is a representative of an institutional shareholder, the name of the institutional shareholder shall be entered.

Note 2: Name of the major shareholders of the institutional shareholder (shareholding ratios among the top ten) and their shareholding ratios. Where a major shareholder is a juridical person, Table 2 below shall be filled out.
Note 3: Where an institutional shareholder is not a company, the name of the shareholder and shareholding ratio that shall be disclosed as mentioned above is the name of the investor or donor and the ratio of capital contribution or donation.

Table 2: Information on Major Shareholders of the Major Shareholders in Table 1 Who are Juridical Persons

April 1, 2024

	April 1, 2024	April 1, 2024
Name of institution (Note1)	Name of the major shareholders of the juridical persons and their shareholding ratios (Note 2)
Gold Circuit Electronics Ltd.	Chang-Chih Yang New Labor Pension Fund Jui-Ching Li Chen-Tse Yang Fubon Life Insurance Co., Ltd. Jiahui Investment Co., Ltd. Labor Retirement Reserve Fund Discretionary investment account of Cathay Life Insurance managed by JPMorgan Asset Management Public Service Pension Fund Management Board	19.65 % 5.84 % 5.62 % 3.59 % 2.93 % 2.24 % 2.03 % 1.85 % 1.75 %

1.63 %

Investment account of Norges Bank under custody of Chase Bank

Note 1: Where the major shareholders in Table 1 above are juridical persons, the name of the juridical persons shall be entered.

Note 2: Name of the major shareholders of the juridical persons (shareholding ratios among the top ten) and their shareholding ratios.

Name of institutional shareholder(Note 1)	Major shareholder of institutional shareholder (Note 2)	Major shareholder of institutional shareholder (Note 2)
Jiahui Investment Ltd.	Chang-Chih Yang	90.0%
	Jui-ChingLi	5.0%
	Chen-Tse Yang	2.5%
	Chen-JungYang	2.5%

Note 3: Where an institutional shareholder is not a company, the name of the shareholder and shareholding ratio that shall be disclosed as mentioned above is the name of the investor or donor and the ratio of capital contribution or donation.

(III) Disclosure of information on the professional qualifications of directors and supervisors and the independence of independent directors

				Number of other
Criteria
				public companies at

				which serving as an
		Professional qualifications and experience	Status of independence
				independent

				director
Name/Identity (Note 2)
				concurrently

Chen-Tse Yang	Chairman and President	⚫ Possessed business/marketing capability and related work experience in the industry. ⚫ MBA, Pace University, New York, USA. ⚫ Business Specialist, Deputy Manager, Manager, Director, Assistant Vice President, and Senior Vice President of the Company. ⚫ Not in line with any of the conditions stated in Article 30 of the Company Act.	-	None
Chang-Chih Yang	Director	⚫ Possessed business/marketing capability and related work experience in the industry. ⚫ Graduated from Business Administration Department, Tamsui Vocational School ⚫ Chairman (former), Gold Circuit Electronics Ltd. ⚫ Not in line with any of the conditions stated in Article 30 of the Company Act.	-	None

				Number of other
Criteria
				public companies at

				which serving as an
		Professional qualifications and experience	Status of independence
				independent

				director
Name/Identity (Note 2)
				concurrently

Chang-Chin Yang	Director	⚫ Possessed work experience in the commerce and industry ⚫ Graduated from Department of Mechanical Engineering, Tamkang University ⚫ Deputy Manager of Manufacturing, Design Engineering, and Production Management; Manager of Computer Department; Special Assistant of the Chairman ⚫ Not in line with any of the conditions stated in Article 30 of the Company Act.	-	None
Chen-Jung Yang	Director	⚫ Possessed work experience in commerce and the ability to make adjustment to legal affairs and risks. ⚫ Graduated from department of Law, National Chung Hsing University ⚫ Concurrently acting as the spokesman of Gold Circuit Electronics Ltd. ⚫ Legal Manager of Gold Circuit Electronics Ltd. ⚫ Not in line with any of the conditions stated in Article 30 of the Company Act.	-	None
Jung-Tung Tsai	Representative of institutional director	⚫ Possessed management capability and relevant work experience in the industry. ⚫ MBA, Indiana University, USA ⚫ Concurrently acting as the representative of the institutional director Chang Wah Technology Co., Ltd. and an independent director of ALi Corporation ⚫ President of Taishin Bank and President of Ta Chong Bank ⚫ Not in line with any of the conditions stated in Article 30 of the Company Act.	-	1
Lien-Mei Lin	Director	⚫ Possessed work experience in commerce and industry. ⚫ Graduated from Ming Chuan Commercial College. ⚫ Business Department, Compeq Manufacturing Co., Ltd. ⚫ Not in line with any of the conditions stated in Article 30 of the Company Act.	-	None

				Number of other
Criteria
				public companies at

				which serving as an
		Professional qualifications and experience	Status of independence
				independent

				director
Name/Identity (Note 2)
				concurrently

Jen-Jou Hsieh	Independent director, Convener of Audit Committee	⚫ Possessed management capability and relevant work experience in the industry. ⚫ Graduated from Industrial Engineering Department, Chung Yuan Christian University; EMBA, Sun Yat-Sen University (Guangzhou). ⚫ President of Commodore International; Chairman of Shenzhen Huamao Electronics Co., Ltd. ⚫ Not in line with any of the conditions stated in Article 30 of the Company Act.	All independent directors meet the following circumstances: 1. The person and his/her spouse or relatives within the second degree of kinship are not the directors, supervisors or employees of the Company or any of its affiliates; 2. The number of the Company’s shares held by the person and his/her spouse or relatives within the second degree of kinship (or in the names of others) does not reach 1%;	None
Wen-Shih Chiang	Independent director, Audit Committee member	⚫ Possessed business and finance management capability and relevant work experience in the industry. ⚫ Graduated from Department of Business Management, Tatung University ⚫ Financial Manager of Chi Wei Technology Co., Limited; Financial Manager and Audit Manager of Gold Circuit Electronics Ltd. (retired in 2001) ⚫ Not in line with any of the conditions stated in Article 30 of the Company Act.		None
Tzu-Ying Lin	Independent director, Audit Committee member	⚫ Possessed work experience in legal affairs and risk judgment. ⚫ Graduated from Department of Law, National Chung Hsing University ⚫ Concurrently acting as a lawyer of Tzu-Ying Lin Law Firm ⚫ Judge of Taoyuan District Court		None

				Number of other
Criteria
				public companies at

				which serving as an
		Professional qualifications and experience	Status of independence
				independent

				director
Name/Identity (Note 2)
				concurrently

Shyr-Chyr Chen	Independent director, Audit Committee member	⚫ Possessed management capability and work experience in legal affairs and risk judgment. ⚫ Graduated from the Department of Medicine, National Taiwan University; and EMBA, School of Management, National Taiwan University. ⚫ Concurrently acting as a professor of School of Medicine, National Taiwan University ⚫ Superintendent and deputy superintendent, National Taiwan University Hospital; President, Taiwan Society of Emergency & Critical Care Medicine ⚫ Not in line with any of the conditions stated in Article 30 of the Company Act.	3. The independent director is not a director, supervisor or employee of any company that has a specific relationship with the Company (Note 1); 4. The independent director did not receive compensation for providing the Company or affiliates with commercial, legal, financial, accounting or related services in the most recent twoyears.	None

Note 1: Directors, supervisors or employees of specific affiliates are based on Subparagraphs 5–8, Paragraph 1, Article 3 of the Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies:
(1) A director, supervisor, or employee of a corporate shareholder that directly holds five percent or more of the total number of issued shares of the company, or that ranks among the top five in shareholdings, or that designates its representative to serve as a director or supervisor of the company under Article 27, paragraph 1 or 2 of the Company Act.
(2) If a majority of the company’s director seats or voting shares and those of any other company are controlled by the same person: a director, supervisor, or employee of that other company.
(3) If the chairperson, general manager, or person holding an equivalent position of the company and a person in any of those positions at another company or institution are the same person or are spouses: a director (or governor), supervisor, or employee of that other company or institution.
(4) A director, supervisor, officer, or shareholder holding five percent or more of the shares, of a specified company or institution that has a financial or business relationship with the company.

Note 2: Jung-Tung Tsai is the representative of the institutional director King Hsiang Investment Co.

(IV) Diversity and independence of the Board of Directors:

There are currently ten directors, including four independent directors. During selection and election, their professional backgrounds (such as law, accounting, industry, finance, marketing, or technology) and professional skills (such as operational judgment capabilities, accounting and financial analysis capabilities, business management capabilities, industry knowledge, international perspective, leadership, and decision-making capabilities) shall be reviewed while the diversity of the professions and gender balance shall be considered, so that the board can consider in a more comprehensive manner when making decisions; in addition to professional backgrounds and skills, directors shall possess expertise in the Company’s business planning and core business activities. The courses on finances, risk management, sales, business, legal affairs, accounting, corporate social responsibility, or internal control system, financial reporting responsibility, outside their own professional fields while related to the nature of the Company’s industry, are selected to enhance the professionalism of the board members and enable them to continue to improve. Each director needs to take at least 6 hours of training per year to ensure that they have a considerable degree of industry knowledge and new knowledge.

	Name	Chen-Tse Yang	Chang-C hih Yang	Lien-Mei Lin	King Hsiang Investment Co., Ltd. Representative: Jung-Tung Tsai	Chang-C hin Yang	Chen-Jun g Yang	Jen-Jou Hsieh	Wen-Shih Chiang	Tzu-Ying Lin	Shyr-Chyr Chen
	Job title	Chairman	Director	Director	Director	Director	Director	Independent Director	Independent Director	Independent Director	Independent Director
	Gender	Male	Male	Female	Male	Male	Female	Male	Male	Female	Male
	An employee	v	v			v	v
1	Business judgment capabilities	v	v		v	v	v	v			v
2	Accounting and financial analysis capabilities				v	v			v
3	Business management capabilities	v	v	v	v	v	v	v	v	v	v
4	Crisis management capabilities	v	v		v	v	v	v	v	v	v
5	Industry knowledge	v	v	v	v	v	v	v	v	v	v
6	International perspective	v	v	v	v	v	v	v	v	v	v
7	Leadership	v	v		v	v	v	v		v	v
8	Decision-making capabilities	v	v		v	v		v			v
9	Legal capabilities						v			v

Formulation of a succession plan for board members (including at least the Chairman) and important management personnel (including at least the top-level managers) and the operations:

In the Company’s succession plan, the successors must have excellent work abilities and values consistent with the Company’s, and shall be honest, good at communication, innovative, and reliable to win clients’ trust.

Most of the Company’s important management personnel are currently being cultivated by the Company’s departments. These individuals possess solid technological skills and work abilities, and have good communication skills with departments. They are trusted by colleagues in the departments, familiar with the Company’s operations, and recognize the Company’s culture. All departments, except the current managers, have candidates for managerial successors to be developed. Mr. Chen-Tse Yang took over as the Company’s CEO in November 2017. He has served in the Company for nearly 30 years and has rotated between jobs in different departments. Although the Chairman and the CEO are the same person, he has the largest shareholding percentage and has the ability to communicate with the leaders of various departments. The directors believe that it is the best arrangement for the Company at present, and the Company makes a profit every year. The revenue and profit for 2022 reached the historical height since the Company’s establishment; in 2023, the Company added a seat of independent director and met the legal requirement of having at least 4 independent directors.

(V) President, Vice Presidents, Assistant Vice Presidents, and Heads of Departments and Branches

April 1, 2024 Unit: share; %

Job title	Name	Gender	Nationality	Date of accession	Shareholding	Shareholding	Shareholdings by spouse and minor child	Shareholdings by spouse and minor child	Shareholding by nominee arrangement	Shareholding by nominee arrangement	Main education (experience)	Current positions held concurrently at other companies	Managerial officers in a spousal relationship or within the second degree of kinship	Managerial officers in a spousal relationship or within the second degree of kinship	Managerial officers in a spousal relationship or within the second degree of kinship	Managerial officers’ acquisition of employee stock warrants	Remarks
					Number of shares	Shareholding ratio	Number of shares	Shareholding ratio	Number of shares	Shareholding ratio			Job title	Name	Affiliation
President	Chen-Tse Yang	Male	R.O.C.	5.06.1996	17,653,216	3.59%	─	─	─	─	Department of Business Administration, Chinese Culture University MBA, Pace University, New York Business Specialist, Deputy Manager, Manager, Director, Assistant Vice President, and Senior Vice President, Gold Circuit Electronics Ltd. Chairman (current), Gold Circuit Electronics Ltd.	Chairman, Suzhou Gold Circuit Electronics Ltd., Changshu Gold Circuit Electronics Ltd., and Changshu Gold Circuit Technology Co., Ltd. Executive Director, Gold Circuit Electronics (Thailand) Co., Ltd. Chairman, King Hsiang Investment Co., Ltd. Chairman,Jiahui Investment Co.,Ltd.	─	─	─	─	Note 2
Marketing & Sales President	Hsi-Kuei Huang	Male	R.O.C.	2012.07.04	642	0%	─	─	─	─	National Tsing Hua University Senior Vice President, Gold Circuit Electronics Ltd.	None	─	─	─	─	None.
Factory President	Chin-Sung Tsai	Male	R.O.C.	2013.06.16	9,956	0.00%	─	─	─	─	Master’s in Chemical Engineering, Yuan Ze University Manager, Director, and Assistant Vice President, Gold Circuit Electronics Ltd.	None	─	─	─	─	None.
Senior Vice President	Te-Ming Yang	Male	R.O.C.	2015.09.09	─	─	─	─	─	─	MBA, University of Leicester, U.K. COO, Bull Will Co., Ltd. President,Suzhou Gold Circuit Electronics Ltd.	None	─	─	─	─	None.
Senior Vice President	Chung-Chih Lung	Male	R.O.C.	2017.12.01	45,000	0.01%	─	─	─	─	Industrial Engineering Department, Chung Yuan Christian University Vice President in Quality Assurance, Tripod Technology Corporation Assistant Vice President in Quality Assurance, CompeqManufacturingCo.,Ltd.	None	─	─	─	─	None.
Vice President	Min-Cheng Liu	Male	R.O.C.	2006.12.01	63,902	0.01%	─	─	─	─	Tatung University Manager, Director, and Assistant Vice President, Gold Circuit Electronics Ltd.	None	─	─	─	─	None.

Job title	Name	Gender	Nationality	Date of accession	Shareholding	Shareholding	Shareholdings by spouse and minor child	Shareholdings by spouse and minor child	Shareholding by nominee arrangement	Shareholding by nominee arrangement	Main education (experience)	Current positions held concurrently at other companies	Managerial officers in a spousal relationship or within the second degree of kinship	Managerial officers in a spousal relationship or within the second degree of kinship	Managerial officers in a spousal relationship or within the second degree of kinship	Managerial officers’ acquisition of employee stock warrants	Remarks
					Number of shares	Shareholding ratio	Number of shares	Shareholding ratio	Number of shares	Shareholding ratio			Job title	Name	Affiliation
Vice President	Chang-Chin Yang	Male	R.O.C.	1991.07.01	1,000,938	0.20%	45,354	0.01%	─	─	Department of Accounting, Tamkang University Manager, Director, and Assistant Vice President, Gold Circuit Electronics Ltd.	Executive Director, Gold Circuit Electronics (Thailand) Co., Ltd.	Director	Chang-Chin Yang	Brothers	─	None
Vice President	Sheng-Hsien Lin	Male	R.O.C.	2014.08.01	100	0.00%	─	─	─	─	Manager, Director, and Assistant Vice President, Gold Circuit Electronics Ltd.	None	─	─	─	─	None.
Vice President	Ta-Kun Yang	Male	R.O.C.	2015.08.16	136,500	0.03%	─	─	─	─	Department of Industrial Management, Chung Hua University EMBA, National Chiao Tung University Manager and Director, Gold Circuit Electronics Ltd. Manager, Changshu Plant No. 2, Gold Circuit Electronics Ltd.	None	─	─	─	─	None.
Vice President	Shun-Chien Li	Male	R.O.C.	2006.12.01	5,734	0.00%	─	─	─	─	Master’s in Business Administration, Chung Yuan Christian University Manager and Director, Gold Circuit Electronics Ltd.	None	─	─	─	─	None.
Assistant Vice President	Sung-Ying Li	Male	R.O.C.	2006.12.01	─	─	─	─	─	─	U. of Missouri-Columbia, USA, Chemical Engineering, Ph.D. Manager and Director, Gold Circuit Electronics Ltd.	None	─	─	─	─	None.
Assistant Vice President	Cheng-Hsuan Chung	Male	R.O.C.	2016.09.01	─	─	─	─	─	─	Department of Business Administration, Fu Jen Catholic University Manager and Director, Gold Circuit Electronics Ltd.	None	─	─	─	─	None.
Assistant Vice President	Jui-Pin Li	Male	R.O.C.	2018.08.16	─	─	─	─	─	─	Chien Hsin University of Science and Technology Manager and Director, Gold Circuit Electronics Ltd.	None	─	─	─	─	None.
Assistant Vice President	Chih-Kung Hu	Male	R.O.C.	2019.01.11	─	─	─	─	─	─	Chien Hsin University of Science and Technology Manager and Director, Gold Circuit Electronics Ltd.	None	─	─	─	─	None.
Special Assistant	Yi-liang Lin	Male	R.O.C.	01.09.2023	─	─	─	─	─	─	Department of Chemical Engineering, National Cheng Kung University Marketing & Sales Vice President, ITEQ Corporation Vice President of Marketing, Taiwan Union TechnologyCorporation	None	─	─	─	─	None.
Chief Auditor	Ming-Yuan Wu	Male	R.O.C.	01.10.2023	329	0.00%	─	─	─	─	Chin-Yi Institute of Technology Manager and Vice Director, Gold Circuit Electronics Ltd.	None	─	─	─	─	None.

Note 1: Information on President, Vice Presidents, Assistant Vice Presidents, and Heads of Departments and Branches shall be included, and anyone holding a position equivalent to the President or Vice President, regardless of the job title, shall be disclosed.

Note 2: The Company’s Chairman and the President or the persons with equivalent positions (the top-level managers) are the same person or the spouse, or relatives within the first degree of kinship to each other, the reason, reasonableness, necessity, and countermeasures shall be disclosed (such as increasing the number of independent directors or more than half of the directors not serving as employees or managers concurrently):

In November 2017, Mr. Chen-Tse Yang took over as the Company’s CEO. He has served in the Company for nearly 30 years and has rotated between jobs in different departments. Although the Chairman and the CEO are the same person, he has the largest shareholding percentage and has the ability to communicate with the leaders of various departments. The directors believe that it is the best arrangement for the Company at present. The Company makes a profit every year, and the revenue and profit for 2022 reached the historical height since the Company’s establishment; in 2023, the Company added a seat of independent director and met the legal requirement of having at least 4 independent directors.

(IV) Remuneration paid to Directors, Supervisors, President, and Vice Presidents in the last year

1. Remuneration paid to Directors, Supervisors, President, and Vice Presidents:

(1-2-1) Remuneration to directors (including independent directors)

Unit: NTD thousand

Job title	Name	Remuneration to directors	Remuneration to directors	Remuneration to directors	Remuneration to directors	Remuneration to directors	Remuneration to directors	Remuneration to directors	Remuneration to directors	Sum of A, B, C, and D as percentage of net income after tax (Note 10) (%)	Sum of A, B, C, and D as percentage of net income after tax (Note 10) (%)	Remuneration for concurrently s	Remuneration for concurrently s	Remuneration for concurrently s	Remuneration for concurrently s	ervings as employees	ervings as employees	ervings as employees	ervings as employees	Sum of A, B, D, E, F, and G as a percentage of net income after tax (Note 111)	Sum of A, B, D, E, F, and G as a percentage of net income after tax (Note 111)	Remuneration from investees other than subsidiaries (Note 11)
		Remuneration (A) (Note 2)		Pension upon retirement (B)		Directors’ remuneration (C) (Note3)		Service expenses (D) (Note 4)				Salaries, bonuses, special allowances,etc. (E) (Note5)		Pension upon retirement (F)		Employee remuneration (G) (Note6)
		The Company	All companies included in the financial statements (Note 7)	The Company	All companies included in the financial statements (Note 7)	The Company	All companies included in the financial statements (Note 7)	The Company	All companies included in the financial statements (Note 7)	The Company	All companies included in the financial statements (Note 7)	The Company	All companies included in the financial statements (Note 7)	The Company	All companies included in the financial statements (Note 7)	The Company		All companies included in the financial statements(Note 7)		The Company	All companies included in the financial statements (Note 8)
																Cash Amount	Stock Amount	Cash Amount	Stock Amount
Chairman	Chen-Tse Yang	2160	2160	0	0	25800	25800	0	0	0.79%	0.79%	34381	34381	0	0	5026	0	5026	0	1.91%	1.91%	None
Director	Chang-Chih Yang
Director	Lien-Mei Lin
Director	King Hsiang Investment Co., Ltd. Representative: Jung-TungTsai
Director	Chang-Chin Yang
Director	Chen-Jung Yang											Lien-Mei Lin and Jung-Tung Tsai did not serve as employe remuneratio				es concurrently, so they did not receive relevant n
Independent Director	Jen-Jou Hsieh	1860	1860	0	0	17200	17200	0	0	0.54%	0.54%	Jen-Jou Hsieh, Jen-Jou Hsieh, Tzu-Y did not serve as employees concurrently, so they				ing Lin, Shyr-Chyr Chen did not receive relevant remuneration				0.54%	0.54%	None
Independent Director	Wen-Shih Chiang
Independent Director	Tzu-Ying Lin
Independent Director	Shyr-Chyr Chen
1. Per Article 7 of the Remuner According to the Company’s 2. Except as disclosed in the tab		ation Committee Charter of the Company and the Rules of the Performance Evaluation of the Board of Directors, the remuneration of independent directors is deter Articles of Incorporation, if the Company makes a profit for the year, the Company may allocate no more than 1% of the profit amount above as director’s remunera le above,the remuneration received bythe directors of theCompanyforprovidingservices to all companies in the financial statements(such as servingas an advis										mined with reference to the usual industry level, attendance rate tion by the resolution of the board meeting. or for theparent company/all companies included in the financi				, individual performance, and the Company’s operating performance. al statements/investee)in the most recentyear: None

(1-2-2) Range of remuneration

1-2-2) Range of remuneration
Range of remuneration paid to directors of the Company		Name of director
	Sum of A,	B, C, and D	Sum of A, B, C, D, E, F, and G
	The Company (Note 8)	All companies included in the financial statements (Note 9) H	The Company (Note 8)	All companies included in the financial statements (Note 9) I
Below NT$1,000,000	─	─	─	─
NT$1,000,000 (inclusive) – NT$2,000,000 (non-inclusive)	─	─	─	─
NT$2,000,000 (inclusive) – NT$3,500,000 (non-inclusive)	─	─	─	─
NT$3,500,000 (inclusive) – NT$5,000,000 (non-inclusive)	Chen-Tse Yang, Chang-Chi Yang, Lien-Mei Lin, Chang-Ching Yang, Cheng-Jung Yang, Jung-Tung Tsai, Jen-Jou Hsieh, Wen-Shih Chiang, Tzu-Ying Lin, Shyr-Chyr Chen,	Chen-Tse Yang, Chang-Chi Yang, Lien-Mei Lin, Chang-Ching Yang, Cheng-Jung Yang, Jung-Tung Tsai, Jen-Jou Hsieh, Wen-Shih Chiang, Tzu-Ying Lin, Shyr-Chyr Chen,	Lien-Mei Lin, Jung-Tung Tsai, Jen-Jou Hsieh, Wen-Shih Chiang, Tzu-Ying Lin, Shyr-Chyr Chen,	Lien-Mei Lin, Jung-Tung Tsai, Jen-Jou Hsieh, Wen-Shih Chiang, Tzu-Ying Lin, Shyr-Chyr Chen,
NT$5,000,000 (inclusive) – NT$10,000,000 (non-inclusive)	─	─	Chang-Chi Yang, Cheng-Jung Yang,	Chang-Chih Yang
NT$10,000,000 (inclusive) – NT$15,000,000 (non-inclusive)	─	─	Chang-Chin Yang	Chang-Chi Yang, Cheng-Jung Yang
NT$15,000,000 (inclusive) – NT$30,000,000 (non-inclusive)	─	─	Chen-Tse Yang	Chen-Tse Yang
Total	10	10	10	10

Note 1: The names of the directors shall be listed separately (in the case of institutional shareholders, the names of the institutional shareholders and their representatives shall be listed separately), and the amount of each payment shall be disclosed in an aggregate manner. Where a director is serving as the President or Vice President concurrently, please fill in this table and table (3-1) below or the tables (3-2-1) and (3-2-2) below.
Note 2: It refers to the remuneration of directors in the last year (including directors’ salary, duty allowance, severance payment, various bonuses, and incentives).
Note 3: It refers to the amount of directors’ remuneration in the annual earnings allocation proposal for the last year approved by the Board of Directors before the shareholders’ meeting.
Note 4: It refers to the directors’ relevant professional service fees in the last year (including honoraria, special allowances, various allowances, dormitory, and any company car assigned). When housing, cars, and other means of transportation are provided or in the case of personal expenses, the nature and cost of the

assets provided, the actual rent or rent at fair market price, fuel, and other payments shall be disclosed. If there is a chauffeur assigned, please specify the relevant payments that the Company makes to the chauffeur without included in the remuneration.

Note 5: It refers to the salary, duty allowance, severance payment, various bonuses, incentives, honoraria, special expenses, various allowances, dormitory, any company car assigned, and other physical items that directors who served as employees concurrently (including President, Vice President, other managers, and employees) in the last year. When housing, cars, and other means of transportation are provided or in the case of personal expenses, the nature and cost of the assets provided, the actual rent or rent at fair market price, fuel, and other payments shall be disclosed. If there is a chauffeur assigned, please specify the relevant payments that the Company makes to the chauffeur without included in the remuneration
Note 6: Where those who have received employee bonuses (including stock and cash) for directors serving as employees concurrently (including President, Vice President, other managers, and employees) in the last year, the amount of employee bonus distributed in the earnings allocation proposal for the last year approved by the Board of Directors before the shareholders' meeting shall be disclosed. If it cannot be estimated, the amount proposed to be distributed for this year shall be calculated in proportion to the actual amount distributed last year, and Table 1-3 shall be filled out additionally.
Note 7: The total amount of remuneration paid to the Company’s directors by all companies (including the Company) in the consolidated financial statements shall be disclosed.
Note 8: For the total amount of remuneration the Company pays to each director, the name of each director shall be disclosed in the corresponding remuneration range.
Note 9: The total amount of remuneration paid to each of the Company’s directors by all companies (including the Company) in the consolidated financial statements shall be disclosed, and the name of each director shall be disclosed in the corresponding remuneration range.
Note 10: Net income after tax refers to the net income after tax for the last year.
Note 11: a. This column shall clearly list the amount of relevant remuneration received by the directors of the Company from the investees other than subsidiaries or the parent company (if none, please give a “None”).
- b. If the directors of the Company receive relevant remuneration from the investees other than subsidiaries or the parent company, the remuneration received by the directors from the investees other than subsidiaries or the parent company shall be included in column I of the remuneration range table, and the column title shall be changed to “Parent Company and All Investees.”
- c. Remuneration refers to the compensation, remuneration, employee bonus, and professional service fees received by the directors of the Company as directors, supervisors, or managers at the investees other than subsidiaries or the parent company.
The content of the remuneration disclosed in this table is different from the concept of income as in the Income Tax Act, so this table is for the purpose of information disclosure and not for taxation purposes.

(2-2) Remuneration of supervisors:

Not applicable as the Company held a comprehensive re-election on June 12, 2017, and set up an Audit Committee to replace the supervisors.

(3-2-1) Remuneration to President and Vice Presidents

Unit: NTD thousand

Job title	Name	Salary (A) (Note 2)	Salary (A) (Note 2)	Pension upon retirement (B)	Pension upon retirement (B)	Bonuses, special allowances, etc. (C) (Note 3)	Bonuses, special allowances, etc. (C) (Note 3)	Employee compensation (D) (Note 4)	Employee compensation (D) (Note 4)	Employee compensation (D) (Note 4)	Employee compensation (D) (Note 4)	Sum of A, B, C, and D as percentage of net income after tax (%) (Note 8)	Sum of A, B, C, and D as percentage of net income after tax (%) (Note 8)	Remuneration from investees other than subsidiaries or parent company (Note 9)
		The Company	All companies included in the financial statements (Note 5)	The Company	All companies included in the financial statements (Note 5)	The Company	All companies included in the financial statements (Note 5)	The Company		All companies included in the financial statements (Note 5)		The Company	All companies included in the financial statements (Note 5)
								Amount of cash	Amount of stock	Amount of cash	Amount of stock
Chairman and President	Chen-Tse Yang	33,663	34,855	0	0	156,977	156,977	21,664	0	22,227	0	6.02%	6.07%	無
Marketing & Sales Center President	Hsi-Kuei Huang
Factory President	Chin-Sung Tsai
Senior Vice President	Te-Ming Yang
Senior Vice President	Chung-Chih Lung
Vice President	Min-Cheng Liu
Vice President	Sheng-Hsien Lin
Vice President	Chang-Chin Yang
Vice President	Ta-Kun Yang

Regardless of job title, anyone holding a position equivalent to the President or Vice President (e.g. President, CEO, or director) shall be disclosed.

(3-2-2) Range of remuneration

(3-2-2) Range of remuneration
Range of remuneration paid to the President and Vice Presidents of the Company	Name of the President and Vice Presidents
	The Company (Note 6)	All companies included in the financial statements (Note 7) E
Below NT$1,000,000	─	─
NT$1,000,000 (inclusive) – NT$2,000,000 (non-inclusive)	─	─
NT$2,000,000 (inclusive) – NT$3,500,000 (non-inclusive)	Te-Ming Yang	─
NT$3,500,000 (inclusive) – NT$5,000,000 (non-inclusive)	─	Te-Ming Yang
NT$5,000,000 (inclusive) – NT$10,000,000 (non-inclusive)	─	─
NT$10,000,000 (inclusive) – NT$15,000,000 (non-inclusive)	─	─
NT$15,000,000 (inclusive) – NT$30,000,000 (non-inclusive)	Chen-Tse Yang, Chang-Chin Yang, Sheng-Hsien Lin, Chung-Chi Lung, Min-Cheng Liu, Ta-Kun Yang	Chen-Tse Yang, Chang-Chin Yang, Sheng-Hsien Lin, Chung-Chi Lung, Min-Cheng Liu, Ta-Kun Yang
NT$30,000,000 (inclusive) – NT$50,000,000 (non-inclusive)	Hsi-Kuei Huang, Chin-Sung Tsai	Hsi-Kuei Huang, Chin-Sung Tsai
Total	9	9

Note 1: The names of the President and Vice Presidents shall be listed separately, and the payment amounts shall be disclosed in an aggregate manner. Where a director serves as the President or Vice President concurrently, please fill out this table and Tables (1-1) and (1-2) above.
Note 2: It refers to the salary, duty allowance, and severance payment provided to the President or Vice Presidents in the last year.
Note 3: It refers to the amount of various bonuses, incentives, honoraria, special allowances, various allowances, dormitory, any company car assigned, and other physical items provided to the President or Vice Presidents in the last year. When housing, cars, and other means of transportation are provided or in the case of personal expenses, the nature and cost of the assets provided, the actual rent or rent at fair market price, fuel, and other payments shall be disclosed. If there is a chauffeur assigned, please specify the relevant payments that the Company makes to the chauffeur without included in the remuneration . In addition, salary expenses recognized in accordance with IFRS 2 “Share-based Benefits,” including obtaining employee stock warrants, new restricted employee shares, and subscription for shares in capital increase in cash, shall also be included in remuneration.
Note 4: It refers to the amount of employee compensation (including stock and cash) approved by the Board of Directors to be distributed to the President or Vice Presidents in the last year. If it cannot be estimated, the amount proposed to be distributed for this year shall be calculated in proportion to the actual amount distributed last year, and Table 1-3 should be filled out additionally. Net income after tax refers to the net income after tax for the last year.

Note 5: The total amount of remuneration paid to the Company’s President and Vice Presidents by all companies (including the Company) in the consolidated financial statements shall be disclosed.
Note 6: For the total amount of remuneration the Company pays to each President and Vice President, the name of each President and Vice President shall be disclosed in the corresponding remuneration range.
Note 7: The total amount of remuneration paid to each of the Company’s President and Vice Presidents by all companies (including the Company) in the consolidated financial report shall be disclosed, and the name of each President and Vice President shall be disclosed in the corresponding remuneration range.
Note 8: Net income after tax refers to the net income after tax for the last year.
Note 9: a. This column shall clearly list the amount of relevant remuneration received by the President and Vice Presidents of the Company from the investees other than subsidiaries.
b. If the President and Vice Presidents of the Company receive relevant remuneration from the investees other than subsidiaries, the remuneration received by the President and Vice Presidents from the investees other than subsidiaries shall be included in column E of the remuneration range table, and the column title shall be changed to “All Investees.”
c. Remuneration refers to the compensation, remuneration (including employee compensation and remuneration of directors and supervisors), and professional service fees received by the President and Vice Presidents of the Company as directors, supervisors, or managers at the investees other than subsidiaries.
The content of the remuneration disclosed in this table is different from the concept of income as in the Income Tax Act, so this table is for the purpose of information disclosure and not for taxation purposes.

(4-1) Remuneration of the top five executives of the TWSE/TPEx listed company with the highest remuneration (Note 1)

Unit: NTD thousand

Job title	Name	Salary (A) (Note 2)	Salary (A) (Note 2)	Pension upon retirement (B)	Pension upon retirement (B)	Bonus and special allowances (C) (Note 3)	Bonus and special allowances (C) (Note 3)	Employee compensation (D) (Note 4)	Employee compensation (D) (Note 4)	Employee compensation (D) (Note 4)	Employee compensation (D) (Note 4)	Sum of A, B, C, and D as percentage of net income after tax (%) (Note 6)	Sum of A, B, C, and D as percentage of net income after tax (%) (Note 6)	Remuneration from investees other than subsidiaries or parent company (Note 7)
		The Company	All companies included in the financial statements (Note 5)	The Company	All companies included in the financial statements (Note 5)	The Company	All companies included in the financial statements (Note 5)	The Company		All companies included in the financial statements (Note 5)		The Company	All companies included in the financial statements (Note 5)
								Amount of cash	Amount of stock	Amount of cash	Amount of stock
Chairman and President	Chen-Tse Yang	23,241	23,241	0	0	113,791	113,791	14,471	0	14,471	0	4.29%	4.29%	None
Marketing & Sales Center President	Hsi-Kuei Huang
Factory President	Chin-Sung Tsai
Senior Vice President	Chung-Chih Lung
Vice President	Min-Cheng Liu

Note 1: Regarding the term of “top five executives with the highest remunerations,” the executives refer to the managerial officers of the Company. The definition of managerial officers is subject to the scope of “managerial officers” specified in Letter Tai-Tsai-Zheng-III-Zi No. 0920001301 dated March 27, 2003 of the former Securities and Futures Commission, Ministry of Finance. As for the principle for the calculation and determination of the “top five executives with the highest remunerations,” the total amount of salary, pension, bonus, special allowance, etc. received by the managerial officers from all the companies in the consolidated financial statements and the employee remuneration (i.e. sum of A+B+C+D) are taken as the basis of the calculation, and the results are then ranked in order to determine the top five executives with the highest remunerations. If a director concurrently acts as any one of the aforementioned executives, this table and the above table (1-1) should be completed.
Note 2: It refers to the salary, duty allowance, and severance payment provided to the top five executives with the highest remuneration in the last year.
Note 3: It refers to the amount of various bonuses, incentives, honoraria, special allowances, various allowances, dormitory, any company car assigned, and other physical items provided to the top five executives with the highest remuneration in the last year. When housing, cars, and other means of transportation are provided or in the case of personal expenses, the nature and cost of the assets provided, the actual rent or rent at fair market price, fuel, and other payments shall be disclosed. If there is a chauffeur assigned, please specify the relevant payments that the Company makes to the chauffeur without included in the remuneration In addition, salary expenses recognized in accordance with IFRS 2 “Share-based Benefits,” including obtaining employee stock warrants, new restricted employee shares, and subscription for shares in capital increase in cash, shall also be included in remuneration.
Note 4: It refers to the amount of employee compensation (including stock and cash) approved by the Board of Directors to be distributed to the top five executives with the highest

remuneration in the last year. If it cannot be estimated, the amount proposed to be distributed for this year shall be calculated in proportion to the actual amount distributed last year, and Table 1-3 should be filled out additionally.

Note 5: The total amount of remuneration paid to the Company’s top five executives with the highest remuneration by all companies (including the Company) in the consolidated financial statements shall be disclosed.
Note 6: Net income after tax refers to the net income after tax as in the standalone or individual financial report in the last year.
Note 7: a. This column shall clearly list the amount of relevant remuneration received by the top five executives with the highest remuneration of the Company from the investees other than subsidiaries or the parent company (if none, please give a “None”).
b. Remuneration refers to the compensation, remuneration (including remuneration of the employees, directors and supervisors), and professional service fees received by the top five executives with the highest remuneration of the Company as directors, supervisors, or managerial officers at the investees other than subsidiaries or the parent company
The content of the remuneration disclosed in this table is different from the concept of income as in the Income Tax Act, so this table is for the purpose of information disclosure and not for taxation purposes.

2. The name of the manager who receives the employee bonus and the distribution:

Unit: NTD thousand

						Unit: NTD thousand
	Job title (Note 1)	Name (Note 1)	Amount of stock	Amount of cash	Total	Proportion of total amount to net income after tax (%)
Manager	Marketing & Sales Center President	Hsi-Kuei Huang	0	26,961	26,961	0.76%
	Factory President	Chin-Sung Tsai
	Senior Vice President	Te-Ming Yang
	Senior Vice President	Chung-Chih Lung
	Vice President	Min-Cheng Liu
	Vice President	Chang-Chin Yang
	Vice President	Sheng-Hsien Lin
	Vice President	Ta-Kun Yang
	Assistant Vice President	Shun-Chien Li
	Assistant Vice President	Sung-Ying Li
	Assistant Vice President	Cheng-Hsuan Chung
	Assistant Vice President	Jui-Pin Li
	Assistant Vice President	Chih-Kung Hu
	Special Assistant	Yi-liangLin
	14 people in total		0	26,961	26,961	0.76%

Note 1: Individual names and job titles shall be disclosed, but the profit distribution may be disclosed in an aggregate manner.
Note 2: It refers to the amount of employee compensation (including stock and cash) approved by the Board of Directors to be distributed to the managers in the last year. If it cannot be estimated, the amount proposed to be distributed for this year shall be calculated in proportion to the actual amount distributed last year. Net income after tax refers to the net income after tax in the last year; if the International Financial Reporting Standards have been adopted, net income after tax refers to the net income after tax as in the standalone or individual financial report in the last year.
Note 3: The definition of “manager” as stipulated in Tai-Cai-Zheng-III No. 0920001301 issued by the Commission dated March 27, 2003 is as follows.
(1) President and an equivalent position
(2) Vice President and an equivalent position
(3) Assistant Vice President and an equivalent position
(4) Head of Financial Department
(5) Head of Accounting Department
(6) Other persons who have the right to manage affairs and sign on behalf of the company
Note 4: Where a director, President, or Vice President receive employee compensation (including stock and cash), both Table 1-2 and this table shall be filled out.

Analysis of the total remuneration paid to directors, supervisors, President, and Vice Presidents of the Company in the last two years by the Company and all companies in the consolidated financial statements as a percentage of the net income after tax, and the description of the relevance of the remuneration policy, standards, and packages, and the association of the remuneration determination procedure with the remuneration to operating performance and future risks.
(1) Analysis of the total remuneration paid to directors, supervisors, President, and Vice Presidents of the Company in the last two years by the Company and all companies in the consolidated financial statements as a percentage of the net income after tax:

Unit: NTD thousand

			Unit: NTD thousand	Unit: NTD thousand
	The Company		All companies included in the financial statements
	Director (Note 1)	President and Vice Presidents	Director (Note 1)	President and Vice Presidents
2023remuneration	47,020	212,304	47,020	214,059
Net income after tax for 2023	3,528,592	3,528,592	3,528,592	3,528,592
Proportion to net income aftertax	1.33%	6.02%	1.33%	6.07%
2022 remuneration	51,600	130,297	51,600	131,237
Net income after tax for 2022	4,567,875	4,567,875	4,567,875	4,567,875
Proportion to net income aftertax	1.13%	2.85%	1.13%	2.87%

Note 1: Directors’ remuneration includes remuneration for directors serving as managers concurrently. Note 2: The Company set up an Audit Committee on June 12, 2017 to replace the supervisors.

(2) The relevance of the Company’s remuneration policy, standards, and packages, and procedures for determining remuneration to business performance and future risks: The Company’s Remuneration Committee is responsible for formulating and regularly reviewing whether the “ Regulations on Remuneration of Directors and Functional Committees” and the “Remuneration Policy for Senior Managers” shall continue to be adopted, and submit suggestions and improvement plans to the Board of Directors as per the Securities and Exchange Act and other relevant laws and regulations, as well as the Remuneration Committee of Gold Circuit Electronics Ltd. The contents of the 2023 proposals are as follows:

Remuneration Committee 01.10.2023 08.10.2023 01.23.2024	Content of proposal and subsequent handling
	Formulated the first to fourth points of the year-end bonus payment regulations as per the version dated January 12, 2012 to issue 7.0 months of base pay as year-end bonus, and allocated the amount as per Article 8 of the regulations as a special bonus for retaining outstanding talents in each department
	Regularly reviewed the proposal of the “Regulations on Remuneration of Directors andFunctionalCommittees”and the“Remuneration PolicyforSenior Managers”
	Formulated the first to fourth points of the year-end bonus payment regulations as per the version dated January 12, 2012 to issue 5.0 months of base pay as year-end bonus, and allocated the amount as per Article 8 of the regulations as a special bonusfor retaining outstanding talentsineachdepartment

III. Status of Corporate Governance

(I) Operation of the Board of Directors

Information on the operation of the Board of Directors

The Board of Directors held 8 meetings (A) last year as of the publication date of annual report. The attendance of the directors is as follows:

Job title	Name	Attendance in perso n (times) B	Attendance by proxy	Attendance in person (%) [B/A] (Note 1)	Remarks
Chairman	Chen-Tse Yang	8	0	100%	Re-elected after the re-election on July 20, 2021
Director	Chang-Chih Yang	7	0	88%	Re-elected after the re-election on July 20, 2021
Director	Lien-Mei Lin	8	0	100%	Re-elected after the re-election on July 20, 2021
Director	Chang-Chin Yang	8	0	100%	Re-elected after the re-election on July 20, 2021
Director	Chen-Jung Yang	8	0	100%	Re-elected after the re-election on July 20, 2021
Director	Representative of King Hsiang Investment Co.: Jung-Tung Tsai	8	0	100%	Re-elected after the re-election on July 20, 2021
Independent Director	Jen-Jou Hsieh	8	0	100%	Re-elected after the re-election on July 20, 2021
Independent Director	Wen-Shih Chiang	8	0	100%	Re-elected after the re-election on July 20, 2021
Independent Director	Tzu-Ying Lin	7	1	88%	Re-elected after the re-election on July 20, 2021
Independent Director	Shyr-Chyr Chen	5	0	100%	Newly elected on June 14, 2023
Note 1: The actual attendance (%) is calculated based on the number of meetings of the Board of Directors held during the term of office and the attendance in person (times). Other additional information: 1. For board meetings that meet any of the following circumstances, specify the date, session, the content of the proposal, independent directors’ opinions, and the Company’s response to such opinions: (1) Matters under Article 14-3 of Securities and Exchange Act. Board of Directors Proposal Independent directo r’s opinio ns Response to indepe ndent directo r’s opinio ns 1.10.2023 (9th meeting) 1. Proposal for ratio of 2022 employee remuneration to directors’ remuneration None N/A 2. Review of the resolutions adopted at the 5th meeting of the current Remuneration Committee None N/A 3. Amendments to the “Rules of the Performance Evaluation of the Board of Directors” None N/A 4. Capital reduction of the subsidiary Goldex Holding Limited None N/A

	5. Appointment of the new Chief Auditor and Chairman’s Special Assistant	None	N/A
	6. Application to the bank for financing facilities and guarantees.	None	N/A
3.09.2023 (10th meeting)	1. The Company’s 2022 financial statements and business report	None	N/A
	2. Distribution of remuneration to employees and directors for 2022	None	N/A
	3. The Company’s earnings distribution for 2022	None	N/A
	4. The Company’s distribution of cash dividends for 2022	None	N/A
	5. Amendment to the“Rules of Procedure for Board Meetings”	None	N/A
	6. Determination of the date, time, place, and main contents for the 2022 annual shareholders’meeting.	None	N/A
	7. Evaluation of CPA’s independence for 2023	None	N/A
	8. Issuance of the Statement on Internal Control	None	N/A
	9. Application to the bank for financing facilities and provision of endorsement/guarantee to subsidiaries	None	N/A
	10. By-election of one independent director, the period for accepting the nomination of candidates, the number of seats to be elected, and the location for accepting the nomination	None	N/A
	11. The name list of independent director candidates presented by the Board of Directors	None	N/A
5.11.2023 (11th meeting)	1. The Company’s consolidated financial statements for 2023 Q1	None	N/A
	2. Establishment of the subsidiary in Thailand	None	N/A
	3. Application to the bank for financing facilities and provision of endorsement/guarantee to subsidiaries	None	N/A
	4. Newly appointed Procurement Vice President of the Company and Factory Manager/Assistant Vice President of the Suzhou Plant	None	N/A
8.10.2023 (12th meeting)	1. The Company’s financial report for the first half of 2023	None	N/A
	2. The Remuneration Committee regularly reviews relevant remuneration measures and resolutions	None	N/A
	3. Application to the bank for financing facilities and provision of endorsement/guarantee to subsidiaries	None	N/A
9.7.2023 (13th meeting)	1. Proposal to issue the 2nd domestic unsecured convertible corporate bonds	None	N/A
11.9.2023 (14th meeting)	1. Review of Company’s consolidated financial statements for 2023 Q3.	None	N/A
	2. Review of the 2024 Annual Audit Plan	None	N/A
	3. Application to the bank for financing facilities and provision of endorsement/guarantee to subsidiaries.	None	N/A
1.23.2024 (15th meeting)	1. Review of providing remuneration to employees and directors for 2023.	None	N/A
	2. Resolution of year-end bonus made by the 7th meeting of the current Remuneration Committee (2021-2024)	None	N/A
	3. Establishment of the “Rules Governing Operations in relation to Finance and Business between Related Parties”	None	N/A
	4. Application to the bank for financing facilities and guarantees.	None	N/A
3.12.2024 (16th meeting)	1. Review of the Company’s 2023 financial statements and consolidated financial statements.	None	N/A
	2. Distribution of remuneration to employees and directors for 2023	None	N/A
	3. Rectification of the Company’s earnings distribution for 2023	None	N/A
	4. Distribution of cash dividends for 2023	None	N/A
	5. Determination of the date, time, place, and main contents for the 2023 annual shareholders’meeting.	None	N/A
	6. Evaluation of CPA’s independence for 2023	None	N/A
	7. Issuance of the Statement on Internal Control.	None	N/A
	8. Capital reduction of subsidiary.	None	N/A
	9. Investment of the subsidiary Goldex Holding Limited in Thailand Gold Circuit Electronics Ltd.	None	N/A
	10. Application to the bank for financing facilities and provision of endorsement/guarantee to subsidiaries.	None	N/A
	11. 10. Re-election of all directors (including independent director),	None	N/A

	the period for accepting the nomination of candidates, the
	number of seats to be elected, and the location for accepting the
	nomination
	12. Proposal to approve the name list of director (including
	independent director) candidates presented by the Board of	None N/A
	Directors
	13. Proposal to remove the non-compete clause for some new directors	None N/A
	(2) In addition to the matters mentioned above, any resolution of the Board of Directors for which dissent or
	reservation has been expressed by any independent director and recorded in the minutes or any written
	statement:
	As of the publication date of the annual report in 2023 and 2024, the independent directors approve all the
	major proposals of the Board of Directors unanimously without objection or reservation.
2. Disclosure regarding recusal for interest-conflicting proposals, including the names of directors concerned, the
	content of proposals, reason for recusal, and the voting process:
	(1) In the meeting on January 10, 2023, for the 2022 year-end bonus distribution proposal and the manager
	performance evaluation and remuneration proposal, the directors present, including Chairman Chen-Tse Yang,
	Director Cheng-Jung Yang, Director Chang-Chi Yang, and Director Chang-Ching Yang, were employees of
	Gold Circuit Electronics Ltd., and they recused themselves from the discussion and voting of said proposals.
	Chairman Chen-Tse Yang appointed Director Jen-Jou Hsieh to preside over the discussion and voting of said
	proposals, which were passed without any objection.
	(2) In the meeting on January 23, 2024, for the 2023 year-end bonus distribution proposal and the manager
	performance evaluation and remuneration proposal, the directors present, including Chairman Chen-Tse Yang,
	Director Cheng-Jung Yang, Director Chang-Chi Yang, and Director Chang-Ching Yang, were employees of
	Gold Circuit Electronics Ltd., and they recused themselves from the discussion and voting of said proposals.
	Chairman Chen-Tse Yang appointed Director Jen-Jou Hsieh to preside over the discussion and voting of said
	proposals, which were passed without any objection.
3. Public companies shall disclose the evaluation cycle and period, scope, method,		and content of the Board of
	Directors’ self- (or peer) evaluation, and state the Board of Directors’ evaluation implementation status: As shown
	in the table below:
	Implementation Status of the Performance Evaluation of the Board of Directors and Functional Committees
	(1) The internal performance evaluation of Board of Directors in 2023 is as follows:
	Evaluation Cycle: At least once a year
	Evaluation period: January 1 to December 31, 2023
	Scope Method Content	Results
	Overall board The unit in There are five aspects as described	The total score is 94 points. The
	performance charge of board below:	evaluation results show that the
	evaluation meeting affairs 1. Degree of participation in	overall operation of the
	conducts the Company’s operations	Company’s Board of Directors
	evaluation as 2. Improvement to the	is still sound and complete in
	per the actual decision-making quality of the Board	line with the spirit of corporate
	operation of the of Directors	governance.
	Board of 3. Composition and structure
	Directors of the Board of Directors
	4. Election and continuing
	education of directors
	5. Internal control
	Performance Self-evaluation There are six aspects as described	The overall average score is 94.
	evaluation of by each board below:	The evaluation results show that
	individual member 1. Keeping abreast of the	the Company’s directors have
	board Company’s goals and mission	positive feedback on the
	members 2. Awareness of director’s	efficiency and effectiveness of
	duties	the evaluation indicators of the
	3. Degree of participation in	operation.

				the Company’s operations
				4. Internal relationship
				management and communication
				5. Directors’ professional and
				continuing education
				6. Internal control
		The contents and results of the performance evaluation above were submitted					to the meeting of the Board of
Directors in March 2024 as a basis for				review and improvement.
(2) The internal performance evaluation of Audit Committee in 2023 is					as follows:
		Evaluation Cycle: At least once		a year
		Evaluation period: January 1 to		December 31, 2023
		Scope	Method	Scoring			Result
	Performance		Self-evaluation	There are five aspects as described			The overall average score is 95.
	evaluation of		by individual	below:			The evaluation results show
	individual		committee	1. Degree of participation in the			that the Company’s Audit
	committee		members	Company’s operations			Committee members have
	members			2. Awareness of Audit Committee’s			positive feedback on the
				duties			efficiency and effectiveness of
				3. Improvement of the Audit			the evaluation indicators of the
				Committee’s decision-making quality			operation.
				4. Composition and structure of the
				Audit Committee
				5. Internal control
		The contents and results of the performance evaluation above were submitted to the meeting of the Board of
Directors in March 2024 as a basis for				review and improvement.
(3) The internal performance evaluation of Remuneration Committee in 2023						is	as follows:
		Evaluation Cycle: At least once		a year
		Evaluation period: January 1 to		December 31, 2023
	Scope		Method	Scoring criteria			Result
	Performance		Self-evaluation	There are five aspects as described			The overall average score is 94.
	evaluation of		by individual	below:			The evaluation results show
	individual		committee	1. Degree of participation in the			that the Company’s
	Remuneration		members	Company’s operations			Remuneration Committee
	Committee			2. Awareness of Remuneration			members have positive
	members			Committee’s duties			feedback on the efficiency and
				3. Improvement of the Remuneration			effectiveness of the evaluation
				Committee’s decision-making quality			indicators of the operation.
				4. Composition and structure of the
				Remuneration Committee
				5.Internalcontrol
		The contents and results of the performance evaluation above were submitted					to the meeting of the Board of
Directors in March 2024 as a basis for				review and improvement.
	(4) 2022 external performance evaluation:
		Evaluation Cycle: At least once every three years
		Evaluation period: September		2021 to August 2022
		Scope	Method	Content		Overall evaluation comments
		Performance	This includes	1. Membership and structure of	1. The board members of the Gold
		evaluation of	online	the Board of Directors	Circuit Electronics have diversified
		Board of	self-evaluation	2. Decision-making quality of the	specialties required for the Company’s
		Directors	and on-site	Board of Directors	operations, and the number of seats and
		and	interview	3. Authorization made by the	female members is appropriate. These
		individual		Board of Directors	are	beneficial to the Board of
		board		4. Supervision conducted by the	Directors’ decision-making quality.
		members		Board of Directors	2. A total of five board meetings were

		5. Communication and message delivery of the Board of Directors 6. Risk management and crisis management 7. Others	convened from September 2021 to August 2022 based on actual operational requirements and necessity, with the director attendance rate of 100%. 3. As for risk management, in addition to establishing control policies, the Company conducts dissemination or education and training to employees every year to enhance risk awareness. A chief information security officer has been designated and a dedicated information security unit has been set up to implement information security control. In addition, the Company regularly reports the implementation of intellectual property management to the Board of Directors every year. The Company reports its sustainable development strategies, action plans and ESG related information to the Board of Directors at least once a year. Overall, the performance of the Board of Directors was outstanding.

※Improvement recommendations and the Company’s response to future improvement plans or actions:

Item No.	Recommendation	Response of the Company
1	Chairman, Chen-Tse Yang, concurrently holds the position of President. Pursuant to Article 4 of the “Taiwan Stock Exchange Directions for Compliance Requirements for the Appointment and Exercise of Powers of the Boards of Directors of TWSE Listed Companies,” if the board chairperson and the general manager or a person holding an equivalent position of a TWSE listed company are the same person or are spouses or relatives within the first degree of kinship, the company shall appoint not less than four independent directors by December 31, 2023. The Company shall plan ahead for the by-election of independent directors at the 2023 shareholders’meeting to comply with legal requirements.	One independent director was added on June 14, 2023.
2	The Company evaluates the independence of the CPAs every year. In addition, Article 29 of the “Corporate Governance Best-Practice Principles,” mandates that the independence and competence of the CPAs shall be assessed regularly. Thus, the Company may add a competence assessment to the appointment of CPAs to improve the efficiency and effectiveness of the work between the Company and the CPAs. In addition, the competent authority encourages TWSE/TPEX listed companies to request AQI (Audit Quality Indicator) information from the CPAs as a reference for appointment or reappointment.	The independence of the CPAs is assessed on a regular basis.
The contents and results of the performance evaluation above were submitted to the meeting of the Board of Directors in March 2023 as a basis for review and improvement.

Evaluation of the objective of strengthening the functions of the Board of Directors (such as setting up an audit committee or enhancing information transparency) and the implementation in the current year and the last year:
(1) From 2021 to 2023, the Company’s “Ethical Corporate Management Promotion Team” reported the “status of fulfillment of ethical corporate management, measures adopted, and effectiveness of the implementation” to the 3rd meeting of the Board on November 9, 2021, the 8th meeting on November 9, 2023, and the 14th Board Meeting, respectively. The report was unanimously approved by all of the directors present.
(2) From 2022 to March 31, 2024, the Sustainable Development Committee of the Company

reported the ESG implementation status, including overall strategic directions, goal setting and progress, greenhouse gas inventory results, and implementation of green power purchase projects, to the Board of Directors on May 10, 2022, August 9, 2022, November 10, 2022, March 9, 2023, and August 10, 2023.

(3) The Company reported the “Intelligent Property Management Plan” to the Board of Directors at the 7th meeting on August 9, 2022 and the 12th meeting on August 10, 2023, respectively to assess the Company’s intellectual property management in the future in terms of planning and execution results.
(4) The Company reported the “Communication of Audit Planning and AQI Matters between CPAs and Corporate Governance Body” to the Board of Directors at the 15th meeting on January 23, 2024.
(5) The Company assesses the independence of CPAs every year and uses AQI information to make appointments. The independence and competence of the CPAs are taken into account. The Company issues the “CPA Independence Assessment Report” for the independence of the CPAs. The assessment covers 14 indicators and the CPAs are requested to present a statement on independence. The competence of the CPAs is assessed in accordance with AQIs, which includes 13 indicators and 5 major aspects. The Audit Committee performs the assessment based on the aforementioned items. These items were discussed by the Audit Committee on March 12, 2024 and March 9, 2023 in the last two years, and were submitted to the Board of Directors for resolution and approval.

The 14 assessment items in the CPA Independence Assessment Report are as follows:

Item	Assessment criteria
1	The members of the audit team and their families, other professional CPAs and their families, the CPA firm and its affiliates have no direct or indirect material financial interests with the Company.
2	There is no mutual financing or guarantee between the Company or the Company’s directors and the audit team members and their family members, other partners of the firm and their family members, CPA firms and any of their affiliates (except for normal commercial loaning activities involving a financial institution).
	he members of the audit team or the CPA firm and its affiliates do not have close business relationship with the Company or its affiliates.
4	There is currently no potential employment relationship between the members of the audit team and the Company.
5	No member of the audit team has served as a director of the Company or held a position that had a significant influence on the audit in the last two years.
6	The Company pays CPA audit fees at a fixed amount. They are not contingent fees. There are no overdue fees that may affect the independence of the audit.
7	The non-audit services provided by the CPA firm and its affiliates to the Company include... None of the significant titles in audit cases are directly affected; the management function of the Company is not affected; no decision is made on behalf of the Company; the independence is not affected.
8	None of the audit team members is commissioned to act as the defender for the Company’s position or opinion, or represent the Company to coordinate with a third party in case of conflict.
9	After the appointment this year, the CPA will have served 6, not exceeding seven years.
10	None of the audit team members has any kinship with the Company’s directors, managerial officers or persons holding a position that has a significant influence on the audit.
11	None of the Company’s directors and managerial officers gives any gifts of great value to the members of the audit team.
2	None of the Company’s directors, managerial officers, or persons holding a position that has a significant influence on the audit has retired / resigned from the CPA firm within one year.
3	None of the independent directors of the Company works for the CPA firm within two years prior to taking office and during his/her term of office. None of the Company’s Remuneration

Committee members was a professional who provided business, legal, financial, accounting services or consulting services within two years prior to taking office and during his/her term of office. The Company does not makeaudit team members suffer intimidation or feel intimidated
4 from the Company that makes them unable to maintain objectivity and clarify professional skepticism. For example:
A. The Company’s management has improper requirements for the choice of accounting policies or disclosure in the financial statements.
B. The Company does not request to reduce the audit work that should be performed on the grounds of reducing service fees.

The 5 major aspects and 13 indicators of the AQIs (Audit Quality Indicators) are as follows:

Item	Aspect	Indicator
1	Professionalism	Audit experience, training hours, turnover rate and professional support
2	Quality control	CPA’s load, audit input, EQCR review status, and quality control support capability
3	Independence	Non-audit service fees and client familiarity
4	Supervision	Defects in external inspections, penalties and improvements by letter of the competent authority
5	Innovation ability	Innovation plans or initiatives

(6) After the 2022 shareholders’ meeting approved the amendments to the Articles of Association,
the Company added one independent director in 2023 to achieve the goal of four seats of independent directors.

(II) Operation of the Audit Committee

Information on Audit Committee members

Identity	Name	Work experience andprofessionalqualifications
Independent Director (Convener)	Jen-Jou Hsieh	Industrial Engineering Department, Chung Yuan Christian University EMBA, Sun Yat-Sen University (Guangzhou) President, Commodore International Chairman, Shenzhen Huamao Electronics Co., Ltd. Independent Director, Gold Circuit Electronics Ltd.
Independent Director (member)	Wen-Shih Chiang	Department of Business Management, Tatung University Financial Manager, Chi Wei Technology Co., Limited. Financial Manager and Audit Manager, Gold Circuit Electronics Ltd. (retired in 2001) Independent Director, Gold Circuit Electronics Ltd.
Independent Director (member)	Tzu-Ying Lin	Department of Law, National Chung Hsing University Judge of Taoyuan District Court Lawyer of Tzu-Ying Lin Law Firm Independent Director, Gold Circuit Electronics Ltd.
Independent Director (member)	Shyr-Chyr Chen	Department of Medicine, National Taiwan University EMBA, College of Management, National Taiwan University President, Taiwan Society of Emergency & Critical Care Medicine Superintendent and deputy superintendent, National Taiwan University Hospital Independent Director, Gold Circuit Electronics Ltd.

Audit Committee’s participation in the operation of the Board of Directors

The Board of Directors held eight meetings (A) last year as of the publication date of annual report. The attendance of the directors is as follows:

Job title	Name	Attendance in person (times) (in a non-voting capacity)	Attendance by proxy	Attendance in person (%) (in a non-voting capacity) (Note1)	Remarks
Independent Director	Jen-Jou Hsieh	8	0	100.0%	Re-elected after the re-electiononJuly20,2021
Independent Director	Wen-Shih Chiang	8	0	100.0%	Re-elected after the re-electiononJuly20,2021
Independent Director	Tzu-Ying Lin	7	1	87.5%	Re-elected after the re-electiononJuly20,2021
Independent Director	Shyr-Chyr Chen	5	0	100.0%	Newly elected on June 14, 2023
Note 1: The actual attendance (%) is calculated based on the number of meetings of the Audit Committee held during the term of office and the attendance in person (times). Other additional information: I. Where any of the following circumstances occur to the operation of the Audit Committee, the date, term and proposal of the Board of Directors meeting as well as the Audit Committee resolution and how the company manage the Committee’s opinions shall be described: (I) Matters under Article 14-5 of Securities and Exchange Act. Audit Committ ee meeting date Proposal 01.10.2023 (7th meeting) 1. Amendments to the “Rules of the Performance Evaluation of the Board of Directors” 2. Capital reduction of the subsidiary Goldex Holding Limited 3. Appointment of the new Chief Auditor of the Company. 4.Application to the bank for financing facilities and provision of endorsement/guarantee to subsidiaries. 03.09.2023 (8th meeting) 1.Review of the Company’s 2022 financial statements and business report 2.Review of the 2022 distribution of remuneration to employees and directors 3. Review of the Company’s 2022 earnings distribution. 4. Review of the Company’s distribution of cash dividends for 2022 5. Review of the CPA independence for 2023. 6. Issuance of the Statement on Internal Control. 7.Application to the bank for financing facilities and provision of endorsement/guarantee to subsidiaries. 5.11.2023 (9th meeting) 1. Establishment of the “Regulations Review of CPA’s Non-Assurance Services” submitted for review. 2. Appointment of CPAs and service fees submitted for approval. 3 Review of the Company’s consolidated financial statements for 2023 Q1. 2. Establishment of the subsidiary in Thailand. 5. Application to the bank for financing facilities and provision of

	endorsement/guarantee to subsidiaries.
	8.10.2023 1. Review of the Company’s financial statements for the first half of 2023
	(10th meeting) 2. Application to the bank for financing facilities and provision of
	endorsement/guarantee to subsidiaries.
	9.7.2023 1. Proposal to issue the 2nd domestic unsecured convertible corporate
	(11th meeting) bonds
	11.9.2023 1 Review of the Company’s consolidated financial statements for 2023 Q3.
	(12th meeting) 2. Review of the 2024 Annual Audit Plan
	3. Application to the bank for financing facilities and guarantees.
	1.23.2024 1. Establishment of the “Rules Governing Operations in relation to Finance
	(13th meeting) and Business between Related Parties”
	2.Applicationto the bank for financingfacilities and guarantees.
	3.12.2024 1. Review of the Company’s 2023 financial statements and consolidated
	(14th meeting) financial statements
	2. Review of the 2023 distribution of remuneration to employees and
	directors
	3. Review of the Company’s 2023 earnings distribution.
	4. Distribution of cash dividends for 2023
	5. Review of the CPA independence for 2024.
	6. Issuance of the Statement on Internal Control.
	7. Capital reduction of subsidiary.
	8. Investment of the subsidiary Goldex Holding Limited in Thailand Gold
	Circuit Electronics Ltd.
	9. Application to the bank for financing facilities and provision of
	endorsement/guarantee to subsidiaries.
	1. The dissent, reservation or major suggestion of any independent director: None
	2. Audit Committee resolution and how the company manage the Committee’s opinions shall
	be described: All the members of the Audit Committee unanimously approved all
	proposals; the Board of Directors approved all the proposals according to the
	recommendations of the Audit Committee.
	(II) In addition to the matters mentioned above, any resolutions not approved by the Audit Committee
	but approved by more than two-thirds of all the directors: The Company acts in compliance with
	the requirements of Article 14-5 of the Securities and Exchange Act, and there are no resolutions as
	mentioned above that have not approved by the Audit Committee but approved by more than
	two-thirds of all the directors.
II.	Disclosure regarding recusal for interest-conflicting proposals, including the names of independent
	directors concerned, the content of proposals, reason for recusal, and the voting process: None
III.	The communication between independent directors and internal chief auditor and CPAs (shall include
	material issues, methods, and results in the communication in respect of the Company’s financial and
	business status):
	(I) Policy on communication between independent directors and internal chief auditor
	1. The Audit Office implements the audit of the internal control cycle and management regulations
	as per the annual audit plan, and prepares an “internal audit plan,” which will be submitted to
	the Chairman. The plan will be submitted to the members of the Audit Committee for review
	before the end of the following month after an audit project is completed.
	2. The internal chief auditor reports on the status of the audit business and communicate
	face-to-face with independent directors at each (at least four) Audit Committee meeting.
	3. Where internal auditors discover a material violation or the Company may suffer major damage,
	they shall prepare a report for review immediately and notify the members of the Audit
	Committee.
	The summary of the communication between independent directors and internal chief auditor in 2023
	is as follows:

accession	Communication method	Communication matter	Independent director’s recommendation
01.10.2023	1. Chief Auditor’s Report 2. Case Review	1. Reported the audit results of the three plants in mainland China for November and December 2022. 2. For the deficiencies identified in the audit, improvement plans have been proposed and submitted to the monthly audit meeting for discussion, and included in regular follow-upsforsubsequentreview.	None
03.09.2023	1. Chief Auditor’s Report 2. Case Review	1. Reported the audit results of the three plants in mainland China for January and February 2023. 2. For the deficiencies identified in the audit, improvement plans have been proposed and submitted to the monthly audit meeting for discussion, and included in regular follow-ups for subsequent review.	None
05.11.2023	1. Chief Auditor’s Report 2. Case Review	1. Reported the audit results of the three plants in mainland China for March and April 2023. 2. For the deficiencies identified in the audit, improvement plans have been proposed and submitted to the monthly audit meeting for discussion, and included in regular follow-upsforsubsequentreview.	None
08.10.2023	1. Chief Auditor’s Report 2. Case Review	1. Reported the audit results of the three plants in mainland China for May, June and July 2023. 2. For the deficiencies identified in the audit, improvement plans have been proposed and submitted to the monthly audit meeting for discussion, and included in regular follow-ups for subsequent review.	None
11.09.2023	1. Chief Auditor’s Report 2. Case Review	1. Reported the audit results of the three plants in mainland China for August, September and October 2023. 2. For the deficiencies identified in the audit, improvement plans have been proposed and submitted to the monthly audit meeting for discussion, and included in regular follow-upsforsubsequentreview.	None

(II) Policy on communication between independent directors and CPAs

CPAs report the results of the audit or review of the financial statements in the quarterly Audit Committee meeting, as well as other matters to be communicated as required by relevant laws and regulations. During the process, where independent directors have any opinion, they can bring it up for discussion, and the CPAs will explanation accordingly.
In case of material and special issues related to the Company’s finances and business, the CPAs will report to the Audit Committee immediately
Where the Board of Directors has relevant critical issues, it will also invite CPAs to attend the meeting in a non-voting capacity to provide professional advice so as to increase opportunities for CPAs to interact with directors/independent directors.
The communication channels between the Company’s independent directors and the CPAs are

smooth.

The summary of the communication between independent directors and CPAs in 2022 and 2023 is as follows:

Date	Main points communicated
1.10.2023	(1) 2022 annual audit plan (2) Audit Quality Indicator (QI) Report
3.9.2023	Summary of 2022 audited consolidated financial statements
5.11.2023	Communication with the governance body – Explanation of the new IESBA requirements
8.10.2023	Newregulations governinglisting outsideMainland China
11.09.2023	2023 audit planning (audit planning stage)
01.23.2024	Audit QualityIndicator(QI)Report
03.12.2024	Summary of 2024 audited consolidated financial statements

Supervisors’ participation in the operation of the Board of Directors

Not applicable as the Company held a re-election at the annual shareholders’ meeting on June 12, 2017, and set up an Audit Committee as per the laws to replace the supervisors.

Corporate governance implementation and the deviation from the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies and reasons thereof

Assessment criteria	Implementationstatus	Implementationstatus	Implementationstatus	Deviations from Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies and reasons thereof
	Yes	No	Summary
I. Has the Company formulated and disclosed the Corporate Governance Best-Practice Principles in accordance with the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies?	Yes		The Company has formulated the Corporate Governance Best-Practice Principles as approved by the Board of Director on March 21, 2016, and published them on the official website and the Market Observatory Post System (MOPS).	No deviations
II. The Company’s shareholding structure and shareholders’ equity (I) Has the Company established internal operating procedures to handle shareholders’ suggestions, doubts, disputes, and litigation matters, and implement them in accordance with the procedures? (II) Does the Company keep abreast of the list of major shareholders and the ultimate controlling parties of such shareholders? (III) Does the Company establish and implement a risk control mechanism and firewalls between its affiliates and itself?	Yes Yes Yes		The Company has set up a spokesperson/acting spokesperson system. In the case of shareholders’ suggestions or disputes to the spokesperson, the spokesperson will handle such; in case of litigation, the legal affairs unit will handle the relevant legal matters. The Company’s major shareholders’ shareholdings have been stable and concentrated over the years, and the interaction between major shareholders has been pleasant. Pursuant to Article 25 of the Securities and Exchange Act, the Company files a report on the changes in the shareholdings held by insiders (directors, managers, and shareholders holding more than 10% of the total shares) to the MOPS as designated by the Securities and Futures Bureau on a monthly basis. All affiliates of the Company operate independently, and each affiliate has its own internal control system for compliance, and the Company also handles relevant matters as per relevant laws and regulations of the	No deviations No deviations No deviations

Assessment criteria	Implementationstatus	Implementationstatus	Implementationstatus	Deviations from Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies and reasons thereof
	Yes	No	Summary
(IV) Whether the Company established internal regulations prohibiting insider trading against non-public information?	Yes		“Regulations on Supervision of Subsidiary Operations.” The Company has established personnel management rules and other internal regulations to prohibit company insiders from using undisclosed information on the market to buy and sell securities for profit. The Company has also formulated the Operating Procedures for the Processing of Internal Material Information and Prevention of Insider Trading to establish an adequate internal material information processing and disclosure mechanism, ensure the consistency and correctness of the Company’s published information, and strengthen the regulations on insider trading. The requirements of the Operation Procedures include “during the closed period of 30 days before the announcement of the annual financial reports and 15 days before the announcement of the quarterly financial reports, the directors and managerial officers of the Company are not allowed to buy or sell the Company’s securities on their own or in the name of others.” Directors shall be informed prior to the announcement date of the financial reports that they shall not trade their shares during the 30 days prior to the announcement of the annual financial reports and 15 days prior to the announcement of the quarterlyfinancial reports.	No deviations
III. Composition and responsibilities of the board of directors (I) Dose the board of directors formulate a diversity policy for the composition of the board members, establish specific objectives and implement them thoroughly?	Yes		The Company has established the Corporate Governance Best-Practice Principles, in which the diversity policy is stipulated in Chapter 3 “Enhancing the Functions of the Board of Directors.” The current term of the Company’s Board of Directors is composed of 10 directors, including 4 independent directors and 6 general ones, all of whom have extensive experience and expertise in finance, law, business, and PCB management. For the	No deviations

Assessment criteria	Implementationstatus	Implementationstatus	Implementationstatus	Deviations from Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies and reasons thereof
	Yes	No	Summary
(II) In addition to the remuneration committee and the audit committee set up in accordance with the law, does the Company set up other functional committees voluntarily? (III) Does the Company formulate the board of directors’ performance evaluation regulations and methods, and conduct annual and regular performance evaluations while reporting the results of the performance evaluation to the Board of Directors as a reference for individual directors’ remuneration and nomination for re-election? (IV) Does the Company regularly assess the independence of CPAs?	Yes Yes Yes		implementation of the diversity of the Board of Directors, please refer to Chapter Three (IV) Diversity and independence of the Board of Directors of this annual report. The Company currently has only set up the Remuneration Committee and the Audit Committee. The Company’s Board of Director formulated the Rules of the Performance Evaluation of the Board of Directors on March 25, and approved the amendment of these Rules to the “Rules of the Performance Evaluation of the Board of Directors and Functional Committees” on January 10, 2023. The evaluation of the Board of Directors was completed on January 23, 2024. The performance evaluation results were then reported to the Board of Director on March 12, 2024. The Company assesses the independence of CPAs annually and uses AQI information as the basis for appointment. The independence and competence of the CPAs are taken into account. The Company issues the “CPA Independence Assessment Report” for the independence of the CPAs. The assessment covers 14 indicators and the CPAs are requested to present a statement on independence. The competence of the CPAs is assessed in accordance with the AQIs, which includes 13 indicators and 5 major aspects. The Audit Committee performs the assessment based on the aforementioned items. These items were discussed by the Audit Committee on March 12, 2024 and March 9, 2023 in the last two years, and were submitted to the Board of Directors for resolution and approval. The 5 major dimensions and 13 indicators are asfollows:	No deviations No deviations No deviations

Assessment criteria				Implementationstatus	Deviations from Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies and reasons thereof
	Yes	No		Summary
			1. 2. 3. 4. 5.	Professionalism: Audit experience, training hours, turnover rate and professional support Quality control: CPA’s load, audit input, EQCR review status, and quality control support capability Independence: Non-audit service fees and client familiarity Supervision: Defects in external inspections, penalties and improvements by letter of the competent authority Innovation ability: Innovation capability: Innovative planning or advocacy.
IV. Dose the Company appoint an appropriate number of competent corporate governance personnel, and engage a corporate governance officer to be in charge of corporate governance-related matters (including but not limited to providing directors and supervisors with materials required to perform duties, assisting directors and supervisors with compliance, handling matters related to the meetings of the Board of Directors and shareholders’ meetings as per the law, and preparing the minutes of the meetings of the Board of Directors and shareholders’ meeting)?	Yes		The Company has engaged a corporate governance officer as resolved by the Board of Directors on March 25, 2019. The officer’s main responsibilities are to provide directors with materials needed to perform duties, assist directors with compliance, and to handle matters related to board meetings and shareholders’ meetings as per the law. Chang-Chin Yang, Vice President of the Finance Department, is serving as the corporate governance officer concurrently, and has more than three years of management experience in stock affairs and the business related to board meetings and shareholders’ meetings at publicly listed companies. The implementation status of the business in 2023 is as follows: 1. Provide materials required for directors to perform their duties 2. Arrange continuing education for directors (all directors completed the required training hours as per the regulations in 2023) 3. Draw up agenda of board meetings, notify the directors seven days in advance, convene the meeting and provide meeting materials, remind directors in advance in the case of recusal,ifany, and complete theminutes		No deviations

		Implementationstatus	Implementationstatus	Implementationstatus
Yes	No	Summary
		of board meetings 4. Assist the Board of Directors and shareholders’ meeting with meeting procedures and compliance; 5. Responsible for the release of material information on critical resolutions adopted by the Board of Directors 6. Responsible for the release of material information on critical resolutions adopted by the Board of Directors 7. Handle the pre-registration of the date of the shareholders’ meeting as per the law, and prepare the meeting notice, handbook, and minutes within the specified period 8. Conduct the annual performance evaluation of the Board of Directors and board members 9. Responsible for the Company’s information disclosure and website maintenance 10. Completed 12 hours of continuing education for the corporate governance officer in 2023 as shownbelow:
		Class title	Date of class	Training hour
		Carbon Trading Mechanism and Business Administration Applications	10.13.2023	3
		2023 Insider Trading Prevention Conference	10.20.2023	3
		2030/2050 Green Industrial Revolution	11.15.2023	3
		The Concepts, Practices and Tools of the Tax Government within a Group	12.12.2023	3

Assessment criteria	Implementationstatus	Implementationstatus	Implementationstatus	Deviations from Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies and reasons thereof
	Yes	No	Summary

V. Does the Company establish communication channels with stakeholders (including but not limited to shareholders, employees, customers, suppliers), and set up an area dedicated to stakeholders on the Company’s website, and respond to important corporate social responsibility issues that stakeholders are concerned about appropriately? Stakeholders Issues about which stakeholders are concerned Communication channels and response methods Frequency of communication Clients Product quality Customer service Green product High-level supervisors’ mutual visits and development report on progress of new technology and new product Phone, email, mutual visits, andmeetings At least once a year Frequent on weekdays Investors Financial performance Corporate governance Company development and future prospects MOPS Investor conference, seminar Section dedicated to stakeholders on the Company’s website Shareholders’ Meeting From time to time At least 4 times /year From time to time Once a year Employees Labor–management relations Employee benefits Employee opinions and relevant suggestions Voluntarily participate in process improvement Labor–management meetings Employee seminars Complaint and suggestion mailbox Quality Control Circle (QCC) and relevant activities Quarterly Quarterly Daily Semi-annually Suppliers Supplier selection criteria Supplier sustainability management Supply chain meeting Supplier training activities Annually From time to time Society Social participation Environmental policy Charity events and visits Audit of waste service provider From time to time Once amonth Banks Corporate governance Risk management Compliance Mutual visits and meetings Written materials Market trend analyses From time to time Frequent on weekdays At least twice a year				No deviations

Assessment criteria			Implementationstatus	Implementationstatus	Deviations from Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies and reasons thereof
	Yes	No	Summary

V. Does the Company establish communication channels with stakeholders (including but not limited to shareholders, employees, customers, suppliers), and set up an area dedicated to stakeholders on the Company’s website, and respond to important corporate social responsibility issues that stakeholders are concerned about appropriately?	Yes		Shareholders	Issues of concern: Financial performance/corporate governance	No deviations
			1. A shareholders’ meeting is held every year in the middle of the year to communicate complete financial information and the Company’s future development direction to all shareholders in detail 2. The Company has set up a spokesperson system and a section dedicated to stakeholders on the website tofacilitate communication
			Employees	Issues of concern: Employee benefits/Labor relations
			1. A labor–management meeting is organized quarterly 2. An employee seminar is organized quarterly 3. The Company has set up a complaint and suggestion mailboxes (collected daily) to collect employees’ opinions and relevant suggestions 4. There is a proposal improvement reward system to encourage employees to actively participate in various improvement activities in the plants 4. QCC-related events are held to motivate employees to participate in improvement voluntarily
			Clients	Issues of concern: Customer relationship management Hazardous substances/supply chain management
			1. The current status of RBA self-inspection at each plant of the Company is disclosed to clients through the platform launched by

Assessment criteria			Implementationstatus	Implementationstatus	Deviations from Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies and reasons thereof
	Yes	No	Summary
			RBA 2. The Company’s development blueprint, new product development process, reliability, and delivery date are discussed with customers through various meetings
			Suppliers	Issues of concern: Supplier management Supplier selection criteria
			1. The supply chain conference is held every year to communicate the prior year’s operating performance and the coming year’s business development targets to suppliers 2. Supplier training activities regarding RBA’s requirements, greenhouse gas emissions inventory, and reduction requirements are held from time to time
			Community	Issues of concern: Social participation/ Environmental policy
			The Company actively promotes social participation and environmental protection activities, subsidizes children from disadvantaged families for nutritional lunches orextracurricularactivities, etc.
VI. Does the Company appoint a professional stock affairs agency to handle the affairs of shareholders’ meetings?	Yes		The Company has appointed CTBC Bank Co., Ltd., to assist the Company with matters related to shareholders.		No deviations
VII. Public Disclosure of Information (I) Does the Company set up a website to disclose financial business and corporate governance information? (II) Does the Company adopt other means for disclosure (such as	Yes Yes		The Company’s websitewww.gce.com.twis available in both Chinese and English languages. In addition to the relevant financial and business information, a policy statement on corporate social responsibility is disclosed to clearly state its codes of ethics. Relevant financial and business information is disclosed on the Company’s website in		No deviations No deviations

Assessment criteria			Implementationstatus	Deviations from Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies and reasons thereof
	Yes	No	Summary
setting up an English website, appointing personnel to collect and disclose relevant information, properly implementing the spokesperson system, and placing the process of investor conferences on the website)? (III) Does the Company publicly announce and file the annual financial report within two months after the end of each fiscal year and announce and file the financial reports for the first, second, and third quarters and the monthly operation status prior to the specified deadline?	Yes		both Chinese and English languages. The website iswww.gce.com.tw.Each department has appointed dedicated personnel to be responsible for collection and disclosure of the Company’s information. The dedicated personnel at the information department are responsible for placing said information on the website regularly. The Company is currently in discussion with the CPA firm.	No deviations
VIII. Does the Company have any other important information that would facilitate a better understanding of its corporate governance operations? This may include, but is not limited to, information regarding employee rights, employee care, investor relations, supplier relations, stakeholder rights, directors’ and supervisors’ continuing education, the implementation of risk management policies and risk measurement standards, the implementation of customer policies, and the Company's purchase of liability insurance for directors and supervisors.	Yes		1. Employee rights: The Company has set up a section dedicated to human resources on its website, which will facilitate understanding of its human resources policy, employee benefits, manpower analysis of each plant, and current job vacancies. 2. Employee care: The Company has established a positive relationship, featuring mutual trust and mutual reliance, with employees through a welfare system to fulfill and stabilize their lives and a sound education and training system. For example, the Company subsidizes employees’ club activities, organizes cultural and recreational activities and annual travel, provides health examination subsidies and medical consultation service, as well as providing employee dormitories, care for employees living in dormitories, and parking lots. 3. Investor relations: The Company has set up a spokesperson/acting spokesperson systemtohandlerelevantmatters.	No deviations

Assessment criteria	Implementationstatus	Implementationstatus	Implementationstatus
	Yes	No	Summary
			4. Supplier relationship: The Company has established a sustainable partnership with suppliers to promote social responsibility, green supply chain and RBA to suppliers at the next tier, and regularly communicates relevant policy and offers education and training to suppliers. The content of training includes: A. Supply chain strategy and annual plan. B. Introduction to the sustainable development (ESG) of Gold Circuit Electronics Ltd. C. Sustainable environment (Introduction to greenhouse gas inventory) D. RBA and plant site requirements. E. Control standards of Gold Circuit Electronics Ltd. for prohibited and restricted substances. 5. Stakeholder’s rights: Stakeholders may communicate with the Company and offer suggestions to safeguard their legal rights and interests. 6. Directors’ continuing education: The Company’s directors participate in training sessions every year regularly. The sessions in 2023 are as follows: Table 1 below. 7. The implementation of risk management policy and risk measurement standards: The Company’s human resources department will compile the prior year’s risk assessment results (risk points = frequency of occurrence * severity) before the end of January each year, and then regularly follow up on the improvement results and revise the operating procedures as per the risk control levels. 8. The Company purchases liability insurance for directors at the end of each year.
Table 1: Directors and supervisors’ continuing education: The Company’s directors and independent directors participate in training sessions every year regularly, and all completed 6 hours of training sessions in 2023. The sessions are as follows:

Assessment criteria	Assessment criteria		Implementationstatus	Implementationstatus	Implementationstatus	Deviations from Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies and reasons thereof
			Yes	No	Summary
Identity	Name	Organizer			Class title	Traini ng hour
Chairman	Chen-Tse Yang	Taiwan Corporate Governance Association			The Explosion of Artificial Intelligence: The Technological Development and Application Opportunities of the Chat Robot ChatGPT	3
		Taiwan Corporate Governance Association			Big Data Analysis and Fraud Prevention	3
Director	Chang-Chih Yang	Securities and Future Institute			Emerging Fintech Crimes and Money Laundering Prevention from the Company’s Perspective	3
		Securities and Future Institute			Analysis of Common Illegal Cases with Respect to the Securities and Exchange Act	3
Director	Chang-Chin Yang	Taiwan Corporate Governance Association			Information Security Governance and Practice	3
		Taiwan Corporate Governance Association			Patent Deployment and Litigation Practices	3
		Taiwan Corporate Governance Association			Net Zero Sustainability and Talent Incubation Course	9
		Securities and Future Institute			2023 Legal Compliance Seminar on Insider Equity Transaction	3
Director	Chen-Jung Yang	Taiwan Corporate Governance Association			Patent Deployment and Litigation Practices	3
		Taiwan Corporate Governance Association			How to Extend Influence, Contribute to SDGs, and Enhance Corporate Value	3
Director	Lien-Mei Lin	Securities and Future Institute			2023 Insider Trading Prevention Conference	3
		Taiwan Corporate Governance Association			Seminar for Sharing Practical Board Performance Evaluation Cases	3
Representative of institutional director	Jung-Tung Tsai	Taiwan Institute of Directors			Business Opportunities and Challenges under the Net Zero Boom	3
		Taiwan Insurance Institute			International Anti-Corruption and Whistleblower Protection Practices and Money Laundering Prevention	3
Independent Director	Jen-Jou Hsieh	Taiwan Corporate Governance Association			Analysis of Key Messages and Responsibilities of the Annual Report: Perspectives of Directors and Supervisors	3
		Taiwan Corporate Governance Association			Net Zero Sustainability and Talent Incubation Course	9
Independent Director	Wen-Shih Chiang	Securities and Future Institute			How Do Directors and Supervisors Supervise the Company to Establish and Promote a Sound Risk Management System?	3
		Taiwan Corporate Governance Association			How Does the Audit Committee Interpret and Use the Audit Quality Indicators	3

Assessment criteria	Assessment criteria		Implementationstatus	Implementationstatus	Implementationstatus	Deviations from Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies and reasons thereof
			Yes	No	Summary
					(AQIs)?
Independent Director	Tzu-Ying Lin	Securities and Future Institute			The Concepts, Practices and Tools of the Tax Government within a Group	3
		Taiwan Corporate Governance Association			Linking Carbon to Carbon: A Discussion of Carbon Fee, Carbon Tax, Carbon Credit and Carbon Trading	3
Independent Director	Shyr-Chyr Chen	Securities and Future Institute			Shareholders’ Meeting, Management Right and Equity Strategies	3
		Taiwan Project Management Association			Financial Statement Analysis and Financial Accounting Trends	3
		The Institute of Internal Auditors			Interpretation of Financial Analysis Indicators and Prevention of Operational Risks	6

IX. On the basis of the results of the corporate governance evaluation released by TWSE's Corporate Governance Center in the most recent year, please describe the matters to which improvements have been made. Regarding the matters to which improvements have yet to be made, please list those which have been selected as priorities and the measures to be taken. The improvements of the 10th (2022) “Corporate Governance Evaluation” of the Company are described as follows: (1) Starting from 2024, the Company will convene the general shareholders’ meeting before the end of May. (2) Since 2023, the Company has uploaded the annual report 18 days before the general shareholders’ meeting and simultaneously uploaded the English version of the meeting notice, meeting handbook and supplementary meeting materials 30 days before the meeting. (3) Since 2023, the Company has released the English version of the material information at the same time when it is announced. (4) The Sustainability Report prepared by the Company has been verified by a third party since 2023. (5) The Company will continue to assess consider possible improvement measures for the items that have not yet been scored.

Where the company has set up a remuneration committee or a nomination committee, it shall disclose the composition, responsibilities, and operation thereof:

(1) Information on Remuneration Committee members

				Number of other
Criteria
				public companies at

				which serving as
		Professional qualifications and experience	Status of independence
				an independent

				director
Name/Identity
				concurrently

Jen-Jou Hsieh	Independent director, Convener of Remuneration Committee	⚫ Possessed management capability and relevant work experience in the industry. ⚫ Graduated from Industrial Engineering Department, Chung Yuan Christian University; EMBA, Sun Yat-Sen University (Guangzhou). ⚫ President of Commodore International; Chairman of Shenzhen Huamao Electronics Co., Ltd. ⚫ Not in line with any of the conditions stated in Article 30 of the CompanyAct.	All independent directors meet the following circumstances: 1. The person and his/her spouse or relatives within the second degree of kinship are not the directors, supervisors or employees of the Company or any of its affiliates; 2. The number of the Company’s shares held by the person and his/her spouse or relatives within the second degree of kinship (or in the names of others) does not reach	None
Wen-Shih Chiang	Independent director, Remuneration Committee member	⚫ Possessed business and finance management capability and relevant work experience in the industry. ⚫ Graduated from Department of Business Management, Tatung University ⚫ Financial Manager of Chi Wei Technology Co., Limited; Financial Manager and Audit Manager of Gold Circuit Electronics Ltd. (retired in 2001) ⚫ Not in line with any of the conditions stated in Article 30 of the CompanyAct.		None

				Number of other
Criteria
				public companies at

				which serving as
		Professional qualifications and experience	Status of independence
				an independent

				director
Name/Identity
				concurrently

Tzu-Ying Lin	Independent director, Remuneration Committee member	⚫ Possessed work experience in legal affairs and risk judgment. ⚫ Graduated from Department of Law, National Chung Hsing University ⚫ Concurrently acting as a lawyer of Tzu-Ying Lin Law Firm ⚫ Judge of Taoyuan District Court	1%; 3. The independent director is not a director, supervisor or employee of any company that has a specific relationship with the Company (Note 1); 4. The independent director did not receive compensation for providing the Company or affiliates with commercial, legal, financial, accounting or related services in the most recent twoyears.	None

Note 1: Directors, supervisors or employees of specific affiliates are based on Subparagraphs 5–8, Paragraph 1, Article 3 of the Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies:
(1) A director, supervisor, or employee of a corporate shareholder that directly holds five percent or more of the total number of issued shares of the company, or that ranks among the top five in shareholdings, or that designates its representative to serve as a director or supervisor of the company under Article 27, paragraph 1 or 2 of the Company Act.
(2) If a majority of the company’s director seats or voting shares and those of any other company are controlled by the same person: a director, supervisor, or employee of that other company.
(3) If the chairperson, general manager, or person holding an equivalent position of the company and a person in any of those positions at another company or institution are the same person or are spouses: a director (or governor), supervisor, or employee of that other company or institution.
(4) A director, supervisor, officer, or shareholder holding five percent or more of the shares, of a specified company or institution that has a financial or business relationship with the company.
(2) Information of Nomination Committee members: The Company has not yet established a nomination committee

(3) Information on the operation of the Remuneration Committee
I. There are three members of the Company’s Remuneration Committee.
II. The term of office of the current committee members: From July 20, 2021 to July 19, 2024, the Remuneration Committee held 3 meetings (A) in 2023 as of the publication date of the annual report. The attendance of the members is as follows:

The operation of the Remuneration Committee

Job title	Name	Attendance in person (times)( B)	Attendance by proxy	Attendance in person (%) (B/A)	Remarks
Convener	Jen-Jou Hsieh	3	0	100.0%	Re-elected after the re-election on August 10, 2021
Committee Member	Tzu-Ying Lin	3	0	100.0%	Re-elected after the re-election on August 10, 2021
Committee Member	Wen-Shih Chiang	3	0	100.0%	Re-elected after the re-election on August 10, 2021
Other additional information: I. Where the Board of Directors declines to adopt or modifies a suggestion of the remuneration committee, it shall specify the date of the meeting, session, content of the motion, resolution by the Board of Directors, and the Company’s response to the remuneration committee’s opinion (e.g. the remuneration passed by the Board of Directors exceeds the suggestion of the Remuneration Committee, the circumstances and cause for the difference shall be specified): None. II. Where there were resolutions of the Remuneration Committee regarding which members expressed objection or reserved opinions on record or in a written statement, the date of the meeting, session, content of the motion, all members’ opinions, and the response to members’ opinion shall be specified: None. Remuneration Committe e meeting date Content of proposal and subsequent handling Resolution results The Company’s response to Remuneration Committee member’s opinion 01.10.2023 Review of distribution of remuneration to employees and directors for 2022 and discussion of performance of managerial officers and distribution of year-end bonus for 2022. All members of the committee passed the proposal without objection The proposal was submitted to the Board of Directors and approved by all the directors present at the meeting 08.10.2023 Regularly reviewed the proposal of the “Regulations on Remuneration of Directors and Functional Committees” and the “Remuneration Policy for Senior Managers.” All members of the committee passed the proposal without objection The proposal was submitted to the Board of Directors and approved by all the directors present at the meeting 01.23.2024 Review of distribution of remuneration to employees and directors for 2023 and discussion of performance of managerial officers and distribution of year-end bonus for 2023. All members of the committee passed the proposal without objection The proposal was submitted to the Board of Directors and approved by all the directors present at the meeting

(4) Information of Nomination Committee members and its operation status: The Company has not yet established a nomination committee

5. The promotion of sustainable development, the deviations from the sustainable development of listed companies, and the reasons:

Promotion item			Implementation status	Deviations from the Sustainable Development Best-Practice Principles for TWSE/TPEx Listed Companies and reasons thereof
	Yes	No	Summary
I. Does your company have a governance structure that promotes sustainable development, and have a special unit or designate an existing unit for the task of sustainable development promotion? Does the Board of Directors of your company authorize the management to handle relevant matters and supervise the board?	Yes		The Company established the Gold Circuit Electronics Sustainable Development Committee on March 3, 2022. Chairman Chen-Tse Yang designated Vice President Sheng-Hsien Lin to serve as the chair and Senior Director Ying-Shun Hsueh was appointed as the Sustainable Development Coordinator for promotion, planning, communication and coordination of the operation among the teams of the Committee. The top executive of each department acts as a committee member to jointly examine the Company’s core capabilities and set the medium-term and long-term strategic directions and development goals. We have set up seven teams for ESG topics, including the EHS team, energy management team, green supply chain team, innovation management team, corporate governance team, human rights and public welfare team, and information security team. Each team has a dedicated manager and members, covering the project leaders of all the business departments of the Company, and is responsible for confirming the implementation of business and management guidelines with respect to the ESG topic and collecting data in relation thereto. The Gold Circuit Electronics Sustainable Development Committee reports to the Board of Directors on the status of ESG implementation at least once a year, which is supervised by the board of directors. The most recent report to the Board of Directors was submitted on March 12, 2024. The contents of the report include overall strategic directions, setting of goals and reporting of the progress, greenhouse gas inventory results, and implementation of green electricity purchase projects.	No deviations
II. Does the Company implement the risk assessment of environmental, social,and corporate	Yes		The Company identifies major issues every year through external observation, tracking, and analyzing market movements and industry trends, while internally through analysis of operational data,interview with the manager in charge of	No deviations

Promotion item			Implementation status	Deviations from the Sustainable Development Best-Practice Principles for TWSE/TPEx Listed Companies and reasons thereof
	Yes	No	Summary
governance issues related to corporate operation and establish relevant risk management policies or strategies based on the principle of materiality?			each department, and questionnaires. (2) The Company has set out the financial risk assessment and handling procedure and the EHS hazard risk, labor and ethical risk assessment and handling procedure. We score these risks as per the risk level (high, medium, low, minor) and report and control them accordingly. The annual improvement targets are discussed and the annual risk targets are set at the annual management review meeting.
III. Environmental issues (I) Does the Company establish an appropriate environmental management system based on its industrial characteristics?	Yes		The Company implements environmental safety and health activities in line with domestic environmental safety and health laws and regulations while adopting environmental safety and health management systems in line with international standards. In October 1997, it obtained ISO 14001 environmental management system certification to implement environmental protection activities and mitigate environmental impacts. Also, it obtained OHSAS 18001 occupational safety and health management system certification in April 2006 (now ISO 45001) to provide employees with a healthy, safe, and clean work environment. Both management systems are certified regularly and both are within the effective period. The Company has dedicated occupational safety and environmental protection units to take responsibility for the environment, safety, and health promotion and implementation activities.	No deviations
(II) Is the Company committed to improving energy efficiency and using recycled materials with a low impact on the environment?	Yes		The Company has established raw material and waste reduction projects, such as reduction and recycling of waste electronic products and consumables up to a level of 91%, and recycling and reuse of process effluents by more than 16%. In 2022, the recovery/recycling percentage of the entire group has reached the target of 95.08%, and the group’s water recycling and reuse has reached 12.7%. To improve energy efficiency, an energy management system has been established since	No deviations

Promotion item			Implementation status	Implementation status	Implementation status	Implementation status	Deviations from the Sustainable Development Best-Practice Principles for TWSE/TPEx Listed Companies and reasons thereof
	Yes	No	Summary
			2021, and the ISO 50001 energy management certification was obtained on November 23. The Company continues to improve and refine our energy efficiency management. Please refer to the Sustainability Report of the Company for more information on the goals and achievement status.
(III) Does the Company assess the present and future potential risk and opportunities of climate change in relation to the Company and adopt related countermeasures?	Yes		The Company has participated in the CDP supply chain questionnaire since 2013, including our strategy for climate change, identification of risks and opportunities of climate change, disclosure of greenhouse gas emissions, reduction targets and performance, and our management policy on carbon issues. The Company responds to customers’/international investors’ concerns and expectations and further examines the impact of climate change on the Company and take relevant countermeasures. The Company has established the Gold Circuit Electronics Sustainable Development Committee for business inventory and risk identification for climate change, including the direct or indirect impact arising from extreme weather, impact on transformation due to regulations, technology, or market demand, and analysis of the risks and opportunities arising from other cultural and social aspects for the Company’s operations. With the analysis results, the Company will set out a risk management strategy plan as the core of climate change actions to strengthen its climate change governance, and to evaluate the connections with its finances to reduce risks and grasp business opportunities.				No deviations
(IV) Does the Company make statistics on greenhouse gas emissions, water consumption, and total waste weight in the past two years, and formulate policies forgreenhousegas	Yes		The Company has set carbon/waste/water reduction targets and regularly reviewed the status of achievement. The Group conducts annual greenhouse gas inventory and subjects this to third-party verification. The emission statistics of the Group are as follows: (Unit: tCO2e) Year 2021 2022 2023 Scope 1 45,303 39,330 41,100				No deviations
			Year	2021	2022	2023
			Scope 1	45,303	39,330	41,100

Promotion item			Implementation status	Implementation status	Implementation status	Implementation status	Implementation status	Implementation status	Implementation status	Implementation status
	Yes	No			Summary
reduction, water reduction, or other waste management?			Scope 2		362,505			269,106			226,627
			Scope 3		33,672			24,904			677,144
			Intensity (tCO2e/ NT$ million)		16.59			10.17			31.42

			Assurance standard ISO 14064-1: 2018		Taiwan Plant		Suzhou Plant			Changshu Plant No. 1			Changshu Plant No. 2
			Assurance institution		SGS		CQC			CTI
			Verification date		2023/4/9		Scheduled for the end of April			2024/4/3
			Carbon reduction targets and achievement rates (base year: 2019):
			Year	Carbon reduction rate					Green electricity utilization
				Target		Performance			Target			Performance
			2022	2%		7.6%			8%			7%
			2023	8%		About 16%			8%			16.20%
			The Company submitted the SBTi Near-Term Commitment on August 15, 2023 to set a reduction target for a period of 5 to 10 years after the base year and meet the 1.5°C reduction path (annual linear reduction of 4.2%). Thus, the base year will be adjusted from 2019 to 2023 and relevant targets will be adjusted accordingly to meet the requirements of SBTi. Moreover, a complete inventory of Scope 3 will be conducted in 2023, so the carbon emission intensity increased from 10.17 to 31.42 (metric tons CO2e/million). As for the emission sources, electricity purchased is the main source of contribution, accounting for 85%–90% of total emissions. In order to mitigate the environmental impact of greenhouse gas emissions from the Company’s operations, the Company continues to promote energy conservation and carbon reduction strategies. We have formulated a renewable energy purchase plan and started to use renewable energy in 2022 to achieve the net zero commitmentby2050. Currently,the Group’s

Promotion item			Implementation status
	Yes	No	Summary
			green power utilization rate in 2023 is estimated to be about 16% to effectively reduce greenhouse gas emissions. Specific measures have been set and tracked, such as using energy-saving lamps, replacing old air conditioners and public equipment, making process improvement and implementing smart manufacturing solutions. As of the waste aspect, in response to the circular economy, we promote waste resource utilization and recycling, as well as achieve the goal of zero waste landfill actively. Furthermore, we also committed to reducing the impact of wastewater discharge on the environment, especially the impact of heavy metals on the watershed, and have formulated measures to control and reduce the concentration of copper ions in the discharged water. The table below explains the Group’s water consumptionand totalwaste: (Unit: tCO2e) Item 2021 2022 2023 Water consumption 7,443,736 7,674,670 6,932,929 Total weight ofwaste 67,852 67,976 56,463 For detailed greenhouse gas inventory, water consumption, and waste reduction data, please refer to our Sustainability Report. (The complete assurance information will be disclosed in the Sustainability Report)
(V) Implementation of climate-related information The Company’s implementation of climate-related information is detailed below. Please refer to the following key summaries. For more detailed contents, structure and information on the Company’s response to climate change, please refer to the sustainability report. 1. Describe the monitoring and governance of climate-related risks and opportunities by the Board of Directors and the management. Climate change has become a major issue affecting the Company’s sustainable development. In order to respond to this cautiously, the governance structure has been established at three levels. Each level is responsible for a different function, leading the direction and supervising the effectiveness from top to bottom, and accomplishing implementation and reporting on progress and obstacles from bottom to top to achieve a management cycle of continuous improvement. (1) Board of Directors The Board of Directors is the highest governance body. Through the Company’s risk management mechanism,it receives regular reports on climate change action strategies and risk management

Promotion item	Implementation status	Implementation status	Implementation status	Deviations from the Sustainable Development Best-Practice Principles for TWSE/TPEx Listed Companies and reasons thereof
	Yes	No	Summary
measures, and confirms the reports, implementation obstacles, and performance results to effectively supervise the progress and resource allocation. For example, regarding greenhouse gas emission, the Board of Directors listens to the progress briefings and performance results every quarter to demonstrate effective supervision and control. (2) Sustainable Development Committee The Chairman appointed Vice President Sheng-Hsien Lin to serve as the chair of the Committee, and the top executives of the departments serve as the members. The chair convenes meetings on sustainability issues, including climate change issues. Operationally, the Sustainable Development Committee coordinator regularly summarizes the energy management, water resource utilization, greenhouse gas emissions, and climate and environmental trend issues proposed by the “EHS Team” and “Energy Management Team.” He/she also submits and summarizes the climate change risks and opportunities identified by all the units. The Sustainability Committee reviews, formulates and promotes climate change action strategies and risk management measures based on the climate and environmental trend issues and the results identified by each unit. It confirms short-term, medium-term and long-term plans and manages performance evaluation results for subsequent reporting to the Chairman and Board of Directors. 2. Describe how the identified climate risks and opportunities affect the business, strategy and finance of the Company (short-term, medium-term, and long-term). As for the assessment of the financial or operational significance of climate change risks and opportunities, the professionalism and experience and the characteristics of the industry as well as the analysis of climate change issues proposed by the advisors and experts are used as the basis to identify risk issues such as “increased pricing of greenhouse gas emissions,” “persisting high temperature,” and “use of new technologies.” The impact on the Company’s business, strategy and finance is described below: (1) “Increased pricing of greenhouse gas emissions” A. Short-term and medium-term impact on business, strategy, and finance: I. As for the greenhouse gas emissions from transportation, affected by the interaction of carbon expense and the replacement with low-carbon transportation equipment, the cost of raw materials for transportation has increased. II. As for the greenhouse gas emissions from products and processes, the operating cost is affected due to carbon footprint calculation, carbon expense, equipment replacement, and promotion of low-carbon materials. B. Long-term impact on business, strategy, and finance: I. The cost of raw materials is increased and thus the operating cost is affected due to environmental taxes (e.g. carbon border tax) or low-carbon material and technology applications. II. In order to comply with the trend of net zero emissions, the law continues to introduce strong energy conservation and carbon reduction requirements. For example, products must meet the low-carbon level, or product carbon footprint must be indicated. Therefore, product or process design will continue to affect the cost of raw materials and the research and development of low-carbon technologies, and there will be the risk of crowding out by laws and the market. (2) “Persistent high temperature” A. Short-term and medium-term impact on business, strategy, and finance: As the climate model shows that temperature and rainfall fluctuategreatly,it is estimated that the

Promotion item	Implementation status	Implementation status	Implementation status	Deviations from the Sustainable Development Best-Practice Principles for TWSE/TPEx Listed Companies and reasons thereof
	Yes	No	Summary
carbon peaking and the ecosystem are interconnected, resulting in a possible increase in business, strategic and financial impact, but it is still controllable: I. The temperature in summer and autumn is generally high. The renewable energy system is not yet available and this results in a lack of power consumption and the possibility of power shortage and rationing is increased. II. Raw material inventory or procurement delay. III. Factory sites are prone to impact on labor safety, such as continuous high temperature in the factory site, heat stroke or personnel difficulty concentrating and tired, resulting in increased frequency or severity of occupational injuries. IV. The increase in air temperature may affect the temperature and power consumption stability of the process water, which in turn affects the Company’s product yield, output stability and the scrap rate as well as the cost of raw materials and spare parts. V. Postponement in the estimated time of product delivery. B. Long-term impact on business, strategy, and finance: Greenhouse gas emissions are stably controlled. Temperature and rainfall have been simulated for a long time and are stable similar to those in normal years. The possibility of flooding and the impact can be predicted. The impact on raw materials, design, transportation, production process and business operation can be controlled, and thus business, strategy and finance are expected to remain stable. (3) “Using new technologies” A. Short-term and medium-term impact on business, strategy, and finance: I. Actively evaluate and develop the applications of low-carbon materials. II. Develop and design corresponding low-carbon technologies and manufacturing processes for low-carbon materials. III. Promote carbon footprint inventory for specific products. IV. Search for low-carbon energy or transportation with lower greenhouse gas emissions. B. Long-term impact on business, strategy, and finance: I. Continue to evaluate and develop the applications of low-carbon materials. II. Continue to develop and design corresponding low-carbon technologies and manufacturing processes for low-carbon materials, and enhance brand strategy and popularity. III. Strive for preferential policies for design and manufacturing processes to obtain greenhouse gas emission or net zero emission credits. IV. Promote carbon footprint inventory for all products. 3. Describe the financial impact of extreme climate events and transformation actions. (1) Extreme climate events Although there have been no significant extreme weather events such as the “continued high temperature” risk identified above, if they should occur, it is estimated by the Company that it will affect the financial position of more than NT$10 million but less than NT$100 million. It is still within the range that the Company’s financial health can withstand. (2) Transformation actions The Company expects stakeholders (e.g. customers) to adopt new technologies in advance due to regulations or government requirements, and deploy and promote the transformation action plan in advance. The positive growth of the business and strategy will have a significant impact on the Company’sfinancialposition.Thereisasignificantopportunityfor allor apartof theimprovement,

Promotion item	Implementation status	Implementation status	Implementation status	Deviations from the Sustainable Development Best-Practice Principles for TWSE/TPEx Listed Companies and reasons thereof
	Yes	No	Summary
(The sales amount reaches NT$10 million or more), or the Company may have a profit-making period of 2 to 3 years ahead of the market. 4. Describe how climate risk identification, assessment, and management processes can be integrated into the overall risk management system. (1) Climate change risk issues must be managed through an independent identification, evaluation, and management process, which is controlled by the Company’s internal risk management mechanism. Each unit must identify the climate change risk materiality, management measures, obstacles, and performance results, which are summarized to the coordination staff of the Sustainable Development Committee and the meetings of the two functional teams – “EHS Team” and the “Energy Management Team.” The contents of the discussions, formulated strategies, and risk management measures must be submitted to the Sustainability Committee for review, formulation, and promotion of climate change action strategies and risk management measures. The committee must confirm short-term, medium-term, and long-term plans and manage performance evaluation results. Finally, the Board of Directors, as the highest governance unit, must supervise the implementation and performance results of the climate change action strategies and risk management measures through risk management reports, audit reports, and quarterly performance evaluation results to ensure the effective management and control of major climate change risk issues. (2) As for the major climate risk issues of “increased pricing of greenhouse gas emissions” and “persisting high temperature” identified in the current year, the impact on the Company’s business and operations will be confirmed on a rolling basis through the front-end operation procedures, internal professional technology, resources and manpower, combined with practical experiences, market changes, and the results of the trend analysis made by external experts. Accordingly, we will adjust risk management measures for major climate change risk issues to cope with risks, and evaluate whether to initiate risk treatment, transfer, or accept evaluation. 5. If a scenario analysis is used to evaluate the resilience in the face of climate change risks, the scenarios, parameters, assumptions, analysis factors and main financial impacts used shall be stated. The conditions are based on Taiwan, where the headquarters is located. In view of the Taiwanese government’s active promotion of climate change response, greenhouse gas reduction, carbon fee collection, and the development of green and low-carbon technologies, the TaiESM1 climate calculation model is used and the RCP 4.5 greenhouse gas stabilization scenario is adopted. The estimated temperature and rainfall trends are: 24.9°C and 6.3 mm/day in 2030; 25.1°C and 5.2 mm/day in 2050. (Taiwan Climate Change Projection Information and Adaptation Knowledge Platform) Based on the comprehensive estimate of the Company, the financial impact will be more than NT$10 million but less than NT$100 million, which is still to the extent that the Company’s financial health can withstand. 6. If there is a transformation plan in response to the management of climate-related risks, describe the contents of the plan, and the indicators and targets used to identify and manage physical risks and transformation risks. (1) Physical risk A. Short-term and medium-term transformation plan I. Allocate budgets to continuously activate the replacement mechanism for energy-intensive equipment and operations.

Promotion item	Implementation status	Implementation status	Implementation status	Deviations from the Sustainable Development Best-Practice Principles for TWSE/TPEx Listed Companies and reasons thereof
	Yes	No	Summary
II. Plan energy storage equipment or UPS facilities to cope with shortage of electricity quota during the power rationing period. III. Discuss the insurance coverage and the terms and conditions of insurance with the insurance company, and even discuss new types of insurance products in order to address the risks. B. Long-term overall transformation plan I. Use waterproof gates in some areas, and enlarge drainage systems to address the risk of flooding. II. Continue to plan the energy storage equipment or UPS facilities to cope with shortages of electricity quota during the power rationing period; plan the proportion of renewable energy to reduce or avoid the time or extent of production suspension due to power rationing. III. Cooperate and share risk warning, intelligence and surveillance with strategic alliances or academic institutions, and communicate with them. IV. Regularly train employees on emergency response mechanisms. (2) Transformation risk A. Short-term and medium-term transformation plan I. Actively collect information on low-carbon technologies, and actively research and develop low-carbon technologies or manufacturing processes either independently or collaboratively. II. Continue to commission a third-party independent unit to conduct greenhouse gas emission verification in accordance with ISO 14064-1, fully summarize the organization’s overall greenhouse gas emission conditions, and follow the scientific reduction methods based on the Science Based Targets (SBT) to set concrete and feasible carbon reduction targets. We will continue to accumulate practical experience and introduce tools for carbon footprint assessment and promotion. III. Establish the Company’s carbon fee, greenhouse gas emission quota, and carbon pricing analysis strategy; also, evaluate the greenhouse gas reduction plan, and strive for preferential policy measures. IV. Purchase competitive renewable energy; purchase carbon right certificates for the greenhouse gas emissions that cannot be reduced. V. Allocate budgets to continuously activate the replacement mechanism for energy-intensive equipment and operations. B. Long-term overall transformation plan I. Continue to optimize the Company’s carbon fee, greenhouse gas emission quota, and carbon pricing analysis strategy; also, improve the greenhouse gas reduction plan. II. Continue to purchase competitive renewable energy and increase the proportion. Purchase carbon credit certificates for greenhouse gas emissions that can no longer be reduced, and it is expected to achieve the goal of net zero carbon emission in the future. (3) The indicators and targets of physical risks and transition risks are as follows: Target 2023–2024(short term) 2025 (mediumterm) 2030 (long term) Gas management with the Group (base year 2023 ) Carbon emissions (Scope 1+2) reduced by 16.8%/year Carbon emissions (Scope 1+2) reduced by 21%/year Carbon emissions (Scope 1+2) reduced by 42%/year Usage or renewable energy withinthe Group Usage of green power 16.8%/year Usage of green power reaching 21% Usage of green power reaching 42%

Promotion item	Implementation status	Implementation status	Implementation status	Deviations from the Sustainable Development Best-Practice Principles for TWSE/TPEx Listed Companies and reasons thereof
	Yes	No	Summary
(To achieve the SBTi near-term commitment, the base year of the carbon reduction plan is adjusted from 2019 to 2023, and related targets are adjusted simultaneously.)
IV. Social issues (I) Does the Company formulate relevant management policies and procedures in accordance with relevant laws and regulations and the International Bill of Human Rights?	Yes		Per the internationally recognized standards and the RBA (Responsible Business Alliance), the Company establishes human resource policies and is committed to safeguarding labor rights: 1. All work must be based on a voluntary basis (including interns), and workers have the right to resign or terminate their labor contracts at any time with reasonable notice and will not suffer from any form of retaliation. 2. No child labor 3. The Company is committed to complying with legal requirements and the RBA requirements. The Labor Standards Act stipulates that workers shall not work overtime for 46 hours per month. RBA requires that unless it is an emergency or unusual situation, the weekly working hours (including overtime) shall not exceed 60 hours, and workers shall be allowed to take at least one day off per week. 4. The Company pays employees salaries as per the wage laws. Relevant laws and regulations include laws on minimum wages, overtime hours, and legal benefits. 5. Humane treatment and prohibition of illegal harassment 6. No discrimination 7. Freedom of association 8. Diversity of composition 9. Offer equal job opportunities and prohibit any form of discrimination and harassment, and committed to a work environment free of discrimination and harassment 10. Motivate employees to report on discrimination, harassment, retaliation, or threats 11. Provide an appropriate workplace for employees The Companyhas the “Labor Risk Assessment	No deviations

Promotion item			Implementation status	Implementation status	Implementation status	Implementation status	Deviations from the Sustainable Development Best-Practice Principles for TWSE/TPEx Listed Companies and reasons thereof
	Yes	No	Summary
			and Handling Procedures” in place to assess human rights risks every year and propose specific management plans for high risks. In terms of human rights education and training, the RBA course (including labor, business ethics, health and safety, and environmental issues) has been included in the training for new recruits and the annual mandatory training courses for all employees. Training year Class title Participant Training hours 2022 RBA (EICC) Code of Conduct All employees 2239 hours/2239 employees 2022 Orientation for new recruits (RBA/trade secrets/ information security) New recruits 831 hours/831 employees
			Training year	Class title	Participant	Training hours
			2022	RBA (EICC) Code of Conduct	All employees	2239 hours/2239 employees
			2022	Orientation for new recruits (RBA/trade secrets/ information security)	New recruits	831 hours/831 employees

(II) Does the Company formulate and implement reasonable employee benefits and measures (including salary, leave, and other benefits), and properly connect its operating performance or results to employee remuneration?	Yes		The Company has established the “Salary Management Rules” and the “Annual Salary Adjustment Procedures” to adjust the salary of employees based on their commitment, responsibilities, performance and contribution and taking into account their future development and the market salary level. The Company has set out the “Year-end Bonus Payment Rules.” Where there is a surplus at the end of a year, it shall allocate an amount from the earnings after tax to thank employees’ efforts for the year. Where there is a surplus at the end of each month, the production/performance bonus will be distributed as per the “Performance Breakthrough Bonus Payment Rules.” Two days off each week are implemented for the indirect employees of the Company, while four workdays and two days off each week are implemented for the direct employees. Other leave regulations are handled in accordance with the Labor Standards Act and other relevant regulations.				No deviations
(III) Does the Company	Yes		To ensure employees’ health and safety,the				No

Promotion item			Implementation status	Deviations from the Sustainable Development Best-Practice Principles for TWSE/TPEx Listed Companies and reasons thereof
	Yes	No	Summary
provide employees with a safe and healthy work environment, and provide employees with regular safety and health education?			Company provides a bright and clean work environment and conducts work environment inspections every half year as per laws and regulations. The inspections include temperature/humidity, lighting, noise, and toxic and hazardous substances. The results are all in line with national standards and within the allowable concentration range. The Company will review and make improvements based on the report results and historical records. It also provides employees with necessary education and training and protective equipment. Work safety and health personnel will also visit the plant sites from time to time to conduct inspections. They will inspect various firefighting equipment and measures, and guide employees for various hazardous operations and preventive measures to prevent employees from being exposed to dangerous work environment and workplace. Furthermore, it offers health examination and special health examination for employees every year, and provides employees with health knowledge and the information on the improvement to health promotion in the workplace as advised by professional physicians. In response to the implementation of laws related to maternity protection, the Company has set up several breastfeeding rooms so that employees can have a safe environment for milk pumping and storage in the plants. Meanwhile, pregnant and lactating female laborers are prohibited from engaging in dangerous or harmful work, and they are also not allowed to work night shifts to protect the safety of the mother and fetus. The Company had zero fire accidents and zero occupational injury fatalities last year. In response to possible risks such as fire, the Company has established emergency response management procedures, conducted regular inspection, and arranged personnel training. For information on occupational accidents and improvement measures, please refer to the Sustainability Report.	deviations
(IV) Does the Company	Yes		Employees are invaluable assets,and the	No

Promotion item			Implementation status	Deviations from the Sustainable Development Best-Practice Principles for TWSE/TPEx Listed Companies and reasons thereof
	Yes	No	Summary
establish an effective career development and training program for employees?			Company puts great emphasis on a complete talent training plan. To provide employees with complete education and training, the training sessions below are offered, including the following three levels of sessions, new employee training, general training, and professional training. The types of training include on-the-job training, off-the-job training, and personal training. The Gold Circuit Book Club is organized to enhance the corporate culture and teamwork. The Company has introduced the e-learning My Class Academy to provide employees with more diversified and flexible learning methods in conjunction with the functional planning, so that employees can learn on their own.	deviations
(IV) Does the Company comply with relevant laws and international standards with regard to the issues such as customers’ health, safety and privacy, marketing, and labeling for its products and services and establish relevant policies and complaint procedure to protect the rights of the consumers and customers?	Yes		The Company is a midstream PCB manufacturer for various electronic products, and its downstream customers are suppliers of various electronic products. Products are not sold directly to consumers. However, promotion materials and advertisements are subject to legal confirmation before they are released outward. Products are also inspected in accordance with regulations and customer requirements. All employees are required to undergo awareness training on personal information laws, business secrets, and information security awareness to protect customer privacy. Customer First has always been an important policy of the Group. We have established clear channels and procedures for customer complaints to achieve speedy response.	No deviations
(VI) Does the Company establish the supplier management policy to require suppliers to comply with relevant regulations on issues of environmental	Yes		The Company not only requires itself to practice ESG, but also expects to work with suppliers to fulfill its social and environmental responsibilities and follow international procurement practices. Every year, suppliers are required to sign back the RBA letter of commitment. The rate of return from the top 30 suppliers is greater than 99%. For new suppliers, the Company will first evaluate whether they have passed ISO 9001, ISO 14001,and IATF 16949certification and	No deviations

Promotion item	Implementation status	Implementation status	Implementation status	Deviations from the Sustainable Development Best-Practice Principles for TWSE/TPEx Listed Companies and reasons thereof
	Yes	No	Summary
protection, occupational safety and health, or labor rights, and the status of implementation?			review their supporting documents, which shall be valid for at least one month before the expiration date, and audit the suppliers annually as per the “Supplier Evaluation Form.” The purchasing unit shall proceed as per the “Procedures for the Control of the Prohibition of Hazardous Substances (HS).” If a supplier violates the relevant control regulations, it shall not be listed as a qualified HFS supplier. To promote social responsibility and RBA to suppliers at the next tier, the Company regularly communicates relevant policy and offers education and training to suppliers. The content of training includes: A. Introduction to RBA B. Greenhouse gas control targets C. RBA actions that should be taken bysuppliers
V. Does the Company refer to the international standards or guidelines for report preparation to prepare sustainability reports and other reports that disclose its non-financial information? Have the aforesaid reports been assured or certified by a third-party verification agency?	Yes		The Company prepares the Sustainability Report with reference to the internationally accepted GRI standards. The report has been certified by the third party BSI since 2023. For the certification information, please refer to the Sustainability Report on the website of the Company.	No deviations
VI. In the event that the Company has established sustainable development best-practice principles in accordance with the “Sustainable Development Best-Practice Principles for TWSE/TPEx Listed Companies,” please describe the deviations between the implementation and the established principles: Compliance with the Sustainable Development Best-Practice Principles for TWSE/TPEx Listed Companies. For the sustainable development and the implementation of corporate social responsibility of the Company, please refer to our Sustainability Report.
VII. Other important information helpful to understand the implementation status of the sustainable development:

	Promotion item	Implementation status	Implementation status	Implementation status	Deviations from the Sustainable Development Best-Practice Principles for TWSE/TPEx Listed Companies and reasons thereof
		Yes	No	Summary
	1. Gold Circuit is committed to abiding by the RBA Code of Conduct (formerly known as EICC), setting targets for labor, environment, health, safety, and ethics issues, and continuing to follow up and improve. The Taiwan Plant, Suzhou Plant, Changshu Plant No. 1, and Changshu Plant No. 2 underwent RBA-VAP audits in 2022 and won the silver medal. Additionally, the group audited 47 suppliers (including manpower dispatch agencies) in 2022, in the social and environmental part, and required them to continue implementation and improvement so as to realize its commitment to corporate sustainable development together with suppliers. 2. The company is actively implementing energy conservation and carbon reduction projects, updating the group’s LED lighting equipment, and launching energy conservation improvement projects, such as the replacement of energy-consuming equipment. Through the awareness of energy conservation cultivated by providing training continuously, and the adjusted energy-efficient working mode, the total emissions of the Group increase slightly due to an increase in the production capacity, but we will make improvements continuously. The Company has purchased and used renewable energy since 2022. The relevant data are shown in the table below: (Please refer to the Sustainability Report for the Company for other data on carbon reduction and related actions.) Plant Number of certificates Total electricity consumption in 2023 (kWh) Renewable energy consumption (kWh) Proportion of renewable energy Carbon reduction (tCO2e) Taiwan 10,938 177,346,371 11,373,000 6% 5,629 Mainland China 4 323,023,650 69,700,000 22% 39,750 3. It also continues to reduce and recycle waste electronic products and consumables (with an annual recycling rate of more than 90%) to mitigate environmental pollution and hazards. 4. For water resources, it continues to recycle and reuse the water discharged from the processes to reduce the impact on the environment, and is committed to achieving an annual recycling and reuse target of 12%. (For details, please refer to the Sustainability Report of the Company) . 5. Upholding the highest safety standards for the plants, and cooperating with Taiwan’s and China’s government to implement various fire protection measures, the Company’s plants won the Excellent Performance Medal from the Industrial Development Bureau of the Ministry of Economic Affairs in 2018. Also, it won the Badge of Accredited Healthy Workplace from the Ministry of Health and Welfare in 2019 and 2021, which has once again proved that the Company attaches great importance to employees’ health and safety. 6. The Company puts great emphasis on the cultivation and development of talents. In 2023, it was recognized by the Bureau of Employment and Vocational Training, Council of Labor Affairs, Executive Yuan,and certified with the bronze certificate bythe Taiwan Training QualitySystem Plant Number of certificates Total electricity consumption in 2022(kWh) Renewable energy consumption (kWh) Proportion of renewable energy Carbon reduction (tCO2e) Taiwan 0 174,625,600 0 0 0 Mainland China 16 352,527,853 36,516,000 10.36% 20,825

Promotion item	Implementation status	Implementation status	Implementation status	Deviations from the Sustainable Development Best-Practice Principles for TWSE/TPEx Listed Companies and reasons thereof
	Yes	No	Summary
(TTQS) as it improved the effectiveness of various internal training sessions and enhanced its overall competitiveness. The Company has launched a number of training projects to give employees the opportunity to be exposed to a variety of production tools and management approaches, and to increase the exchange of different learning experiences and experiences in technical services between departments, so as to continuously improve human resources. 7. Mainly supported the disadvantaged, offered emergency relief and disaster assistance, and engaged in education promotion. Put into practice the Company’s philosophy of humane care to reach the higher ground through the action below. The details of donations in the last two years are as follows: 2023 Organization Amount (NT$) Andrew 3,000,000 National TaiwanUniversityHospital 1,400,000 Friends of the Police Association 200,000 Taiwan LittlePeopleAssociation 200,000 Medecins Sans Frontieres Foundation 500,000 Christian MountainChildren’sHome 1,000,000 Saint Joseph Society Welfare Foundation 800,000 “Environmental Charity Project” of TPCA EnvironmentFoundation 40,000 2022 Organization Amount (NT$) Andrew CharityAssociation 2,000,000 Christian Mountain Children’s Home 1,000,000 National Taiwan University Hospital 1,000,000 Anti-epidemic supplies, Taoyuan City Government 496,800 Friends of the Police Association 200,000 “Environmental Charity Project” of TPCA Environment Foundation 40,000 8. In addition to the investment in social welfare, the Company has completed the intention of cooperation with Godot Culture and Media Ltd. in 2022. In 2023, the Company invested NT$1 million in cultural promotion projects and sponsored the release of the TV series “The Cleaner” to communicate this story of reconciliation, pardon and love continue to spread to everyone. 9. The Company actively participates in the activities organized by the district office, neighborhood office, and community development association to maintain good interaction. The treated effluents from Taiwan Plant are discharged into the nearby arena. The Company is aware of the environmental risks we may pose to the nearby community. Therefore, the Company provides regular effluent inspection reports to the head of the neighborhood and monitors residents’ health and environmental

Promotion item	Implementation status	Implementation status	Implementation status	Deviations from the Sustainable Development Best-Practice Principles for TWSE/TPEx Listed Companies and reasons thereof
	Yes	No	Summary
conditions at all times. The Company also works with the head of the neighborhood to actively participate in the adoption activity of Clean Air Quality Zones organized by the Environmental Protection Administration of the Executive Yuan. The Company received the 2021 Clean Air Zone Adoption – Sustainable Care Award from the Environmental Protection Administration, Executive Yuan. 10. In terms of gender equality, in 2023, female employees of the Taiwan Plant accounted for approximately 47.2%, and 36.2% of the plants in China. Female managers of the Taiwan Plant accounted for 36.1%, and 21.2% of the plants in Mainland China. In 2023, relevant indicators and plans were formulated to continue to promote protection measures for the working environment and health and safety of women, as well as education, training, and promotion mechanisms to enhance women’s strength in the workplace. 11. Related licenses of the Company and their effective periods No. Standard Taiwan Plant Suzhou Plant Changshu Plant No. 1 Changshu Plant No. 2 1 IS0 9001:2015 2026.04.25 2024.06.04 2025.07.12 2026.04.24 2 ISO 14001:2015 2024.08.20 2026.10.20 2025.08.09 2026.04.24 3 ISO45001:2018 2026.09.30 2026.01.22 2025.08.03 2026.04.25 4 QC080000:2017 2025.05.21 2026.07.02 2025.09.22 2026.08.28 5 ISO/IEC 27001: 2013 2025.10.31 NA NA NA 6 IATF 16949:2016 2024.10.23 NA 2024.03.09 2024.03.09 7 ISO 50001:2018 2024.11.23 2025.12.18 2025.01.25 2025.03.13

Implementation of ethical management and deviation from the Ethical Corporate Management Best-Practice Principles for TWSE/GTSM Listed Companies and the reasons thereof.

thereof.
Assessment criteria	Implementationstatus			Deviations from Ethical Corporate Management Best-Practice Principles for TWSE/GTSM Listed Companies and the reasons thereof
	Yes	No	Summary
I. Enactment of ethical management policy and program (I) Does the Company formulate an ethical management policy approved by the board of directors and clearly indicate the ethical management policy and practice in rules and external documents? Are the board of directors and the senior management committed to implementing said policy actively? (II) Does the Company establish a risk assessment mechanism against unethical conduct, analyze and assess on a regular basis business activities within their business scope which are at a higher risk of being involved in unethical conduct, and establish a prevention program accordingly with the inclusion of the preventive measures against each behavior specified in Paragraph 2, Article 7 of the “Ethical Corporate Management Best-Practice Principles for TWSE/GTSM Listed Companies”?	Yes Yes		The Company has formulated the Ethical Corporate Management Best-Practice Principles, which clearly stipulates that directors, managers, and employees shall not directly or indirectly provide, promise, request, or accept any improper benefits in the course of doing business. Both the Board of Directors and the management are actively committed to the management policy. The Company has set out the “Ethical Risk Assessment and Handling Procedures” and rates each risk high/medium/low/minor as per the risk level, and reports and controls them in accordance with the operating procedures. The annual improvement targets are discussed and the annual risk targets are set at the annual management review meeting.	No deviations No deviations

Assessment criteria	Implementationstatus	Implementationstatus	Implementationstatus	Deviations from Ethical Corporate Management Best-Practice Principles for TWSE/GTSM Listed Companies and the reasons thereof
	Yes	No	Summary
(III) Does the Company specify the operating procedures, behavior guidelines, disciplinary actions for violation, and complaint system in the prevention program for unethical conduct, and implement the program accordingly? Does the Company review and modify the program mentioned above regularly?	Yes		To implement the business philosophy and the policy of the preceding article, the Company has formulated the Business Ethics and the “Ethical Risk Assessment and Handling Procedures” to establish the operating procedures, behavior guidelines, disciplinary actions for violations, and a grievance system so as to strengthen relevant preventive measures.	No deviations
II. Implementation of ethical corporate management (I) Does the Company assess if its counterparties’ record of ethical conduct and specify the ethical conduct clause in the contracts that it signs with its counterparties? (II) Does the Company establish a dedicated unit under Board of Directors to promote ethical corporate management and to report on the ethical management policy, prevention program of unethical conduct, and status of supervision to Board of Directors regularly (at least once a year)? (III) Does the Company formulate policies to prevent conflicts of interest, provide appropriate channels for opinions, and implement them accordingly?	Yes Yes Yes		The Company’s business ethics, procurement policy, and work rules for employees all contain the clauses of ethical conduct. The Company’s Chairman’s Office compiled the information on the ethical corporate management policy, prevention program, supervision, and implementation thereof and reported it to the Board of Directors on November 9, 2023. The Chairman’s Office completed the investigation report within one month after accepting a suspected bribe acceptance/bribery case, and put forth disciplinary actions.	No deviations No deviations No deviations

Assessment criteria	Implementationstatus	Implementationstatus	Implementationstatus	Deviations from Ethical Corporate Management Best-Practice Principles for TWSE/GTSM Listed Companies and the reasons thereof
	Yes	No	Summary
(IV) Does the Company establish an effective accounting system and internal control system to implement ethical management and draft relevant audit plans by the internal audit unit based on the risk assessment results of the unethical conduct? Does the compliance of prevention program for the unethical conduct audited accordingly by the internal audit unit or CPAs appointed? (V) Does the Company organize internal and external education and training on ethical corporate management regularly?	Yes Yes		The Company formulated Business Ethics Supervision Operation Regulations on September 1, 2004 and other relevant operating procedures: 1. It also conducts the risk assessment of labor and corporate ethics every year, and the result of the 2023 assessment was low risk. 2. The number of reports received through internal and external whistleblowing and grievance channels in 2023 was 0 3. The number of reports received related to violations of business ethics and ethical corporate management in 2023 was 0 The Company’s human resources department puts forth execution plans and reports them to the management every year as per the business ethics policy to engage in continuous improvement. The Company organizes internal training sessions regularly, such as Business Ethics and RBA training sessions to suppliers.	No deviations In line with the Ethical Corporate Management Best-Practice Principles for TWSE/GTSM Listed Companies
III. The operation of the whistleblowing system (I) Does the Company formulate a specific whistleblowing and reward system, and establish an accessible whistleblowing channel, while designating personnel to be responsible for investigating accused parties?	Yes		The Company has established a whistleblowing and reward system to clearly stipulate the whistleblowing channels to accept reports of suspected bribe acceptance/bribery and other unethical conduct: Point of contact: Sheng-Hsien Lin, Chairman’s Office Hotline: 03-4612541-21211 Email:[email protected]	No deviations

Assessment criteria			Implementationstatus	Deviations from Ethical Corporate Management Best-Practice Principles for TWSE/GTSM Listed Companies and the reasons thereof
	Yes	No	Summary
(II) Does the Company formulate standard operating procedures for the investigation of the matters reported, follow-up measures to be taken after the investigation is completed, and relevant confidentiality mechanisms? (III) Does the Company take measures to protect whistleblowers from being improperly handled due to whistleblowing?	Yes Yes		The Company has formulated the Ethical Risk Assessment and Handling Procedures and the Rules of Reporting Violations and Protective Measures for Whistleblowers. The specific measures to protect the whistleblowers include: confidentiality of the whistleblower reports, investigation records and other information that can sufficiently identify the whistleblower, with appropriate notes on the file and kept separately for retention. Any unreasonable disclosure of the Company’s related rights and interests shall be punished according to the Company’s Employee Work Rules. The Company’s Rules of Reporting Violations and Protective Measures for Whistleblowers contain clear provisions regarding whistleblowers’ identity and safety. Anyone who informs in good faith about a breach of ethics, suspected violation of the law, or any other improper act will be kept confidential of the whistleblowing contents and identity information, and will not suffer any form of retaliation (or threat of retaliation) or unfair treatment. If anyone believes that he/she has suffered retaliation (or threats or harassment) due to the abovementioned behavior, he/she shall report to the Human Resources Department, which shall take appropriate measures to protect the whistleblower.	No deviations No deviations

Assessment criteria	Implementationstatus	Implementationstatus	Implementationstatus	Deviations from Ethical Corporate Management Best-Practice Principles for TWSE/GTSM Listed Companies and the reasons thereof
	Yes	No	Summary
IV. Enhanced information disclosure Does the Company disclose on its website and MOPS the content and effectiveness of implementation of its Ethical Corporate Management Best-Practice Principles?	Yes		The Company discloses its ethical corporate management policy and procurement policy on its website, which clearly stipulate that all business interactions shall be conducted as per the standards of honesty and integrity. Any and all forms of corruption, extortion, and embezzlement of public funds are explicitly prohibited.	No deviations
V. Where a company has established its own Ethical Corporate Management Best-Practice Principles in accordance with the Ethical Corporate Management Best-Practice Principles for TWSE/GTSM Listed Companies, please specify the difference between its operations and the principles formulated: The Company has established the Business Ethics in accordance with the Ethical Corporate Management Best-Practice Principles for TWSE/GTSM Listed Companies and the Business Ethics Policy. The directors, managerial officers, and all employees of the Company have adhered to the ethics without any violation.

	Assessment criteria	Implementationstatus	Implementationstatus	Implementationstatus	Deviations from Ethical Corporate Management Best-Practice Principles for TWSE/GTSM Listed Companies and the reasons thereof
		Yes	No	Summary
~~81~~ VI. Other important information to facilitate better understanding of the Company’s implementation of ethical corporate management (e.g. the Company promotes its determination and policy of ethical management to its business partners, invites them to participate in education and training, or reviews and amends its ethical corporate management principles): The Company’s human resources department puts forth execution plans and reports them to the management every year as per the Business Ethics Policy to engage in continuous improvement. The Company organizes internal training sessions regularly, such as Business Ethics and RBA training sessions to top 20 suppliers. Education and training date Class title Participant Training hours/person-time 2023 RBA (EICC) Code of Conduct (including labor, business ethics, health and safety, and environmental issues) All employees 2239 hours/2239 employees 2023 Advocacy of corporate ethics awareness amongemployees All employees 2246 hours/2246 employees 2023/9/28 New Knowledge in Law–Business Ethics (including business secret and insider trading) (Online and digital courses) Supervisors, administrator, and engineers (job rankings at level 4 and above) 636 hours/636 employees 2023/3/7 Supplier conference Top 20 suppliers, on-site service providers, and manpower dispatch/human resources agencies 132 hours/66 employees The Company has established the “Labor Behavior and Ethics Correction and Preventive Measures Management Procedures” to handle and investigate the actual or potential non-compliance of labor behaviors and ethics. It shall apply to matters in violation of the Company’s requirements of labor behavior and ethical standards, laws and regulations, the RBA (EICC) Code of Conduct, and the social responsibility requirements as in the customer contracts. VII. Where the Company has formulated the corporate governance principles and relevant regulations, it shall disclose its inquiry method: Please refer to the disclosure in the financial information on the Company’s website (http://www.gce.com.tw). VIII. Other important information to facilitate better understanding of the operation of corporate governance shall be disclosed together: Please refer to paragraph 7 below “Deviations from Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies and reasons thereof.”

Flow chart for investigation of any violation of ethics (including suspected one):

Whistleblower/Applicant Confirm
Point of contact: The top-level manager of YES whether there is the ethics office any violation of
1. Decide whether to form an the law
investigation task force
2. If yes, complete the investigation report within 1 month (extension if necessary)
3. If true, put forth disciplinary actions for the parties who violated the ethics
4. If true, award the whistleblower an YES appropriate reward Company administrative procedures: 1. In event of violation of the law or violation of fair competition, the relevant information shall be handed over to the police, and notify the whistleblower of this measure
2. Ensure the safety and confidentiality of the whistleblower to prevent retaliation
3. Request for suspension/transfer of the person involved if necessary
4. Terminate contracts and refuse to do business with suppliers, customers, and business counterparties involved in unethical conduct
5. Review the completeness of the process, system, and penalty/reward mechanism
6. Re-arrange corporate ethics training 7. Public relations: Single point of contact

Notify the whistleblower/applicant of the results and inform the reapplication channel

The matters below shall be disclosed for implementation status of the internal control system:
(1) Statement on Internal Control.

GOLD CIRCUIT ELECTRONICS LTD. Statement on the Internal Control System

Date: March 12, 2024

It is hereby declared that results of self-assessment of the Company’s internal control system for 2023 are as follows:

I. The Company is aware that the establishment, execution, and maintenance of its internal control policies are the responsibilities The Company’s Board of Directors and managers. These policies were implemented throughout The Company. The purpose is to provide reasonable assurance on the achievement of operating effectiveness and efficiency (including profits, performance, and assets safeguarding), reporting matters with reliability, timeliness, and transparency, and compliance with the relevant law and regulations.
II. Internal control policies are prone to limitations. No matter how robustly designed, effective internal control policies merely provide reasonable assurance to the achievements of the three goals above. Furthermore, environmental and situational changes may affect the effectiveness of internal control policies. However, self-supervision measures were implemented within The Company’s internal control policies to facilitate immediate rectification once procedural flaws have been identified.
III. The Company has based on the criteria of the internal control system effectiveness in the “Regulations Governing the Establishment of Internal Control System by Public Companies” (hereinafter referred to as the Regulations” hereinafter) to determine the effectiveness of the internal control system design and implementation. The criteria introduced by “The Governing Principles” consisted of five major elements, each representing a different stage of internal control: 1. Control environment, 2. Risk evaluation and response, 3. Procedural control, 4. Information and communication, 5. Supervision. Each element further contains several items. Please refer to “The Governing Principles” for details.
IV. The Company adopted the abovementioned criteria to evaluate the effectiveness of its policy design and execution.
V. The Company based on the assessment results in the preceding paragraph believes that the Company’s internal control system (including the supervision and management of subsidiaries) as of December 31, 2023, including the achievement of operating effectiveness and efficiency, reporting matters with reliability, timeliness, transparency, and compliance with the relevant specifications, and the compliance with the relevant law and regulations, and the relevant internal control system design and implementation, is effective and is able to reasonably ensure achieving the objectives above.
VI. This statement forms part of the main contents of the company’s annual report and prospectus, and shall be disclosed to the public. Any misrepresentation or concealment of the aforementioned disclosures shall be liable to violation of Articles 20, 32, 171 and 174 of the Securities and Exchanges Act and the legal consequences thereof.
VII. The Statement on the Internal Control System was approved at the Board of Directors

meeting on March 12, 2024 without any objection from any of the 10 directors present. The attending directors approved the Statement on the Internal Control System unanimously.

GOLD CIRCUIT ELECTRONICS LTD.

Chairman: Chen-Tse Yang Signature/Seal

President: Chen-Tse Yang Signature/Seal

(2) Where CPAs are appointed to conduct ad-hoc review of the internal control system, the review report issued by the CPAs shall be disclosed: None.

In the last year and as of the publication date of the annual report, where the Company and its internal personnel have been punished in accordance with the law, or the Company has imposed penalties on its internal personnel for violations of the internal control system, the main deficiencies and improvements: None.
Important resolutions of the shareholders’ meeting and board meetings in the last year and as of the date of the publication of the annual report:

(1) Important resolutions of the 2023 shareholders’ meeting, attendance, and implementation:

Item No.	Resolution	Attendance	Implementation status
1	Ratified the Company’s 2022 financial statements	Attending shareholders representing 93.22% of the voting rights present passed the proposal as proposed	Announced and reported in accordance with the regulations.
2	Ratified the Company’s 2022 earnings distribution as cash dividend of NT$3.5	Attending shareholders representing 93.3% of the voting rights present passed the proposal as proposed	The ex-dividend date was set on April 20, 2023, and the payment was completed on May 12, 2023.

(2) Important resolutions of the Board of Directors:

)	Important resolutions of the Board of Directors:
Date of meeting	Important resolution
1.10.2023 (9th meeting)	1. Ratio of 2022 employee remuneration to directors’ remuneration 2. Review of the resolutions adopted at the 5th meeting of the current Remuneration Committee 3. Amendments to the “Rules of the Performance Evaluation of the Board of Directors” 4. Capital reduction of the subsidiary Goldex Holding Limited 5. Appointment of the new Chief Auditor and Chairman’s Special Assistant 6. Application to the bank for financing facilities and guarantees. Independent director’s opinions: None The Company’s response to such opinions: The independent directors have no other opinions on this case. Resolution: Approved unanimously by all directors present at the meeting; implemented in accordance with the resolution and the laws and regulations .
3.09.2023 (10th meeting )	1. The Company’s 2022 financial statements and business report 2. Distribution of remuneration to employees and directors for 2022 3. The Company’s earnings distribution for 2022 4. The Company’s distribution of cash dividends for 2022 5. Amendment to the “Rules of Procedure for Board Meetings” 6. Determination of the date, time, place, and main contents for the 2022 annual shareholders’ meeting. 7. Evaluation of CPA’s independence for 2023 8. Issuance of the Statement on Internal Control. 9. Application to the bank for financing facilities and provision of endorsement/guarantee to subsidiaries 10. By-election of one independent director, the period for accepting the nomination of candidates, the number of seats to be elected, and the location for accepting the nomination 11. The name list of independent director candidates presented by the Board of Directors Independent director’s opinions: None The Company’s response to such opinions: The independent directors have no other opinions onthis case.

Date of meeting	Important resolution
	Resolution: Approved unanimously by all directors present at the meeting; implemented in accordance with the resolution and the laws and regulations.
5.11.2023 (11th meeting )	1. The Company’s consolidated financial statements for 2023 Q1 2. Establishment of the subsidiary in Thailand 3. Application to the bank for financing facilities and provision of endorsement/guarantee to subsidiaries 4. Newly appointed Procurement Vice President of the Company and Factory Manager/Assistant Vice President of the Suzhou Plant Independent director’s opinions: None The Company’s response to such opinions: The independent directors have no other opinions on this case. Resolution: Approved unanimously by all directors present at the meeting; implemented in accordance with the resolution and the laws and regulations .
8.10.2023 (12th meeting)	1. The Company’s financial report for the first half of 2023 2. The Remuneration Committee regularly reviews relevant remuneration measures and resolutions 3. Application to the bank for financing facilities and provision of endorsement/guarantee to subsidiaries Independent director’s opinions: None The Company’s response to such opinions: The independent directors have no other opinions on this case. Resolution: Approved unanimously by all directors present at the meeting; implemented in accordance with the resolution and the laws and regulations.
9.7.2023 (13th meeting)	1. Proposal to issue the 2nd domestic unsecured convertible corporate bonds Independent director’s opinions: None The Company’s response to such opinions: The independent directors have no other opinions on this case. Resolution: Approved unanimously by all directors present at the meeting; implemented in accordance with the resolution and the laws and regulations.
11.9.2023 (14th meeting)	1. Review of Company’s consolidated financial statements for 2023 Q3. 2. Review of the 2024 Annual Audit Plan 3. Application to the bank for financing facilities and provision of endorsement/guarantee to subsidiaries. Independent director’s opinions: None The Company’s response to such opinions: The independent directors have no other opinions on this case. Resolution: Approved unanimously by all directors present at the meeting; implemented inaccordance withtheresolutionand thelaws andregulations.
1.23.2024 (15th meeting)	1. Review of providing remuneration to employees and directors for 2023. 2. Resolution of year-end bonus made by the 7th meeting of the current Remuneration Committee (2021–2024) 3. Establishment of the “Rules Governing Operations in relation to Finance and Business between Related Parties” 4. Application to the bank for financing facilities and guarantees. Independent director’s opinions: None The Company’s response to such opinions: The independent directors have no other opinions on this case. Resolution: Approved unanimously by all directors present at the meeting; implemented in accordance with the resolution and the laws and regulations.
3.12.2024 (16th meeting)	1. Review of the Company’s 2023 financial statements and consolidated financial statements. 2.Distributionof remunerationto employees and directorsfor 2023

Date of
meeting

Important resolution

3. Rectification of the Company’s earnings distribution for 2023
4. Distribution of cash dividends for 2023
5. Determination of the date, time, place, and main contents for the 2023 annual
shareholders’ meeting.
6. Evaluation of CPA’s independence for 2023
7. Issuance of the Statement on Internal Control.
8. Capital reduction of subsidiary.
9. Investment of the subsidiary Goldex Holding Limited in Thailand Gold Circuit
Electronics Ltd.
10. Application
to
the
bank
for
financing
facilities
and
provision
of
endorsement/guarantee to subsidiaries.
11. Re-election of all directors (including independent director), the period for accepting
the nomination of candidates, the number of seats to be elected, and the location for
accepting the nomination
12. Proposal to approve the name list of director (including independent director)
candidates presented by the Board of Directors
13. Proposal to remove the non-compete clause for some new directors
Independent director’s opinions: None
The Company’s response to such opinions: The independent directors have no other
opinions on this case.
Resolution: Approved unanimously by all directors present at the meeting; implemented
inaccordance withtheresolutionand thelaws andregulations.

In the last year and up to the publication date of the annual report, directors or supervisors have different opinions on important resolutions passed by the Board of Directors on record or in a written statement: None.
Summary of the resignation and dismissal of relevant persons of the Company:
(I) A summary of the resignation and dismissal of the Company’s Chairman, President, accounting manager, financial manager, internal chief auditor, and R&D manager in the last year and up to the publication date of the annual report:

Summary of the resignation and dismissal of relevant persons of the Company

				January 10, 2023
Job title	Name	Date of inauguration	Date of dismissal	Reasons for resignation and dismissal
Chief auditor	Chun-Hung Kuo	2015.11.12	01.10.2023	At retirement age

IV. Information on CPA’s audit fees:
(I) Non-audit fees and audit fees for the CPAs, the CPA’s firm, and its affiliates

				Unit: NTD thousand	Unit: NTD thousand
CPA firm	Name of CPA	Audit period	Audit fees	Non-audit fees	Remar ks
Deloitte Taiwan CPA firm	Chao-Ling Chen Chun-Yi Chang	01.01.2023–12.31.2023	8,408	2,957	Note 1

Note 1: The content of non-audit fees and taxes are mainly due to the review of transfer pricing projects.

(II) Where the CPA firm is replaced and the audit fee in the year in which replacement occurs is less than that in the prior year: None, N/A
(III) Where the audit fees decreased by at least 15% compared with that in the prior year, the amount, proportion, and reasons for the decrease shall be disclosed: None, N/A
V. Information on Replacement of CPAs

CPAs have been replaced in the last two years and the subsequent periods: Due to the adjustment of the internal job positions of Deloitte & Touche, CPAs Chao-Ling Chen and Chun-Yi Chang have served as the Company’s CPAs since the third quarter of 2022.

VI. Any of the Company’s chairperson, president, managers of finance or accounting held a position in the CPA’s firm or its affiliates in the last year: None
VII. Changes in the equity transferred or pledged by directors, supervisors, managers, and the shareholders who holds more than 10% of the total shares in the last year and as of the publication date of the annual report:
(I) Changes in the equity transferred or pledged by directors (including independent directors), managerial officers, and the shareholders who holds more than 10% of the total shares

total shares
Job title	Name	2023		As of April 1 of the current year
		Increase (decrease) of shares held	Increase (decrease) of shares pledged	Increase (decrease) of shares held	Increase (decrease) of shares pledged
Chairman and President	Chen-Tse Yang	0	0	0	0
Director and shareholder holding at least 10% of the shares	Chang-Chih Yang	0	0	0	0
Director	Chang-Chin Yang	0	0	0	0
Director	Chen-Jung Yang	0	0	0	0
Director	Lien-Mei Lin	0	0	0	0
Director	King Hsiang Investment Co., Ltd. Representative: Jung-Tung Tsai	0	0	0	0
Independent Director	Jen-Jou Hsieh	0	0	0	0
Independent Director	Wen-Shih Chiang	0	0	0	0
Independent Director	Tzu-Ying Lin	0	0	0	0
President of Business Center	Hsi-Kuei Huang	0	0	0	0
President of Plant Affairs Center	Chin-Sung Tsai	0	0	0	0
Senior Vice President	Te-Ming Yang	0 (149,000)	0	0	0
Senior Vice President	Chung-Chih Lung	0	0	0	0
Vice President	Min-Cheng Liu	0	0	0	0
Vice President	Sheng-Hsien Lin	9,000 (293,000)	0	0	0
Vice President/Corporate Governance Officer/Financial and Accounting Manager	Chang-Chin Yang	0 (26,000)	0	0	0
Vice President	Ta-Kun Yang	0 (161,000)	0	0	0

Job title	Name	2023	2023	As of April 1 of the current year	As of April 1 of the current year
		Increase (decrease) of shares held	Increase (decrease) of shares pledged	Increase (decrease) of shares held	Increase (decrease) of shares pledged
Vice President	Shun-Chien Li	0 (49,000)	0	0	0
Assistant Vice President	Sung-Ying Li	0 (6,000)	0	0	0
Assistant Vice President	Cheng-Hsuan Chung	0	0	0	0
Assistant Vice President	Jui-Pin Li	0 (9,000)	0	0	0
Assistant Vice President	Chih-Kung Hu	0	0	0	0
Special Assistant	Yi-liang Lin (Date of inauguration: 1/9/2022)	0	0	0	0
Deputy Director/Chief Auditor	Ming-Yuan Wu (Date of inauguration: 1/10/2023)	0	0	0	0
Chief Auditor	Chun-Hung Kuo (Date of dismissal: 1/10/2023)	0	0	0	0

(II) Changes in the equity transferred by directors (including independent directors), managerial officers, and the shareholders who holds more than 10% of the total shares (transferred for a related party): None
(III) Changes in the equity pledged by directors (including independent directors), managerial officers, and the shareholders who holds more than 10% of the total shares (pledged for a related party): None

VIII. Top 10 shareholders who hold the highest shareholding percentages are the related parties, or spouses, or relatives within the second degree of kinship to each other.

The relationship between the top 10 shareholders who hold the highest shareholding percentages

Name	Shareholding	Shareholding	Shareholdings by spouse and minor child	Shareholdings by spouse and minor child	Total shareholding by nominee arrangement	Total shareholding by nominee arrangement	Where the top 10 shareholders who hold the highest shareholding percentages are related parties as defined in Statement of Financial Accounting Standards No.6, spouses, or relatives within the second degree of kinship to each other, the name and relationship.	Where the top 10 shareholders who hold the highest shareholding percentages are related parties as defined in Statement of Financial Accounting Standards No.6, spouses, or relatives within the second degree of kinship to each other, the name and relationship.
	Number of shares	Percentage of shareholding	Number of shares	Percentage of shareholding	Number of shares	Percentage of shareholding	Title (Title)	Affiliation
Chang-Chih Yang	96,622,217	19.65%	27,651,870	5.62%	11,012,760	2.24%	Jui-Ching Li Chen-Tse Yang	Couple Father and son
New Labor Pension Fund	28,730,520	5.84%	`—`	`—`	`—`	`—`	None	None.
Jui-Ching Li	27,651,870	5.62%	96,622,217	19.65%	11,012,760	2.24%	Chang-Chih Yang Chen-Tse Yang	Couple Mother and son
Chen-Tse Yang	17,653,216	3.59%	`—`	`—`	`—`	`—`	None	None.
Fubon Life Insurance Co., Ltd. Ltd.	14,429,900	2.93%	`—`	`—`	`—`	`—`	Chang-Chih Yang Jui-Ching Li	Father and son Mother and son
Jiahui Investment Co., Ltd. Representative: Chang-Chi Yang	11,012,760	2.24%	`—`	`—`	`—`	`—`	Jui-Ching Li Chen-Tse Yang	Couple Father and son
Labor Retirement ReserveFund	9,982,040	2.03%	`—`	`—`	`—`	`—`	None	None.
Discretionary investment account of Cathay Life Insurance managed by JPMorgan Asset Management	9,085,000	1.85%	`—`	`—`	`—`	`—`	None	None.
Public Service Pension Fund Management Board	8,594,300	1.75%	`—`	`—`	`—`	`—`	None	None.
Investment account of Norges Bank under custody of Chase Bank	8,006,110	1.63%	`—`	`—`	`—`	`—`	None	None.

IX. The number of shares held by the Company, its directors, supervisors, managers, and businesses directly or indirectly controlled by the Company in the same investee, and the combined shareholdings shall be calculated.

Investee	Investment by the Company	Investment by the Company	Investment by directors, supervisors, managers, or businesses directly or indirectly controlled	Investment by directors, supervisors, managers, or businesses directly or indirectly controlled	Combined investment	Combined investment
	Number of shares	Shareholding ratio	Number of shares	Shareholding ratio	Number of shares	Shareholding ratio
King Hsiang Investment Co., Ltd.	19,999,400	99.997%	400	0.0015%	19,999,800	99.999%
Goldex Holding Limited	181,910,000	100.00%	—	—	181,910,000	100.00%
Gold Circuit International Limited	98,000,000	100.00%	—	—	98,000,000	100.00%
GoldCircuit Enterprise Limited	83,010,000	100.00%	—	—	83,010,000	100.00%
Suzhou Gold Circuit Electronics Ltd.	98,000,000	100.00%	—	—	98,000,000	100.00%
Changshu Gold Circuit Electronics Ltd.	30,010,000	100.00%	—	—	30,010,000	100.00%
Changshu Gold Circuit TechnologyCo., Ltd.	33,000,000	100.00%	—	—	33,000,000	100.00%
Gold Circuit Electronics (Thailand)Co., Ltd.	20,750,000	100.00%	—	—	20,750,000	100.00%

FOUR. Capital and Shares

I. Sources of capital stock
(I) Type of share

April 1, 2024

Type of share		Authorized capital		Remarks
	Outstandingshares	Unissued shares	Total
Registered common shares	491,839,057	258,160,943	750,000,000

(II) Formation of capital stock

Unit: NTD thousand

Year Month	Issuing price	Authorized capital	Authorized capital	Paid-incapital	Paid-incapital	Remarks	Remarks	Remarks
		Number of shares	Amount	Number of shares	Amount	Sources of capital stock	Investment by property other than cash	Others
September 1981	10	1,000,000	10,000	1,000,000	10,000	Established	－	Note 1
December 1984	10	3,000,000	30,000	3,000,000	30,000	Capital increase in cash 20,000	－	Note 2
October 1987	10	6,000,000	60,000	6,000,000	60,000	Capital increase in cash 30,000	－	Note 3
October 1988	10	9,000,000	90,000	9,000,000	90,000	Capital increase in cash 30,000	－	Note 4
August 1989	10	12,000,000	120,000	12,000,000	120,000	Capital increase in cash 30,000	－	Note 5
December 1989	10	16,000,000	160,000	16,000,000	160,000	Capital increase in cash 40,000	－	Note 6
June 1990	10	19,800,000	198,000	19,800,000	198,000	Capital increase in cash 38,000	－	Note 7
October 1991	10	30,000,000	300,000	24,348,000	243,480	Capital increase from earnings45,480	－	Note 8
August 1992	10	30,000,000	300,000	30,000,000	300,000	Capital increase from earnings 56,520	－	Note 9
September 1996	10	60,000,000	600,000	60,000,000	600,000	Capital increase in cash 49,500 Capital increase from earnings 250,500	－	Note 10
August 1997	10	99,000,000	990,000	99,000,000	990,000	Capital increase in cash 48,000 Capital increase from earnings 342,000	－	Note 11
June 1998	10	300,000,000	3,000,000	177,300,000	1,773,000	Capital increase in cash 265,000 Capital increase from earnings 396,000 Capital reserve 99,000 Employee bonus 23,000	－	Note 12
July 1999	10	480,000,000	4,800,000	268,880,000	2,688,800	Capital increase from earnings 531,900 Capital reserve 354,600 Employee bonus29,300	－	Note 13
August 2000	10	480,000,000	4,800,000	324,766,000	3,247,660	Capital increase from earnings 403,320 Capital reserve 134,440 Employee bonus21,100	－	Note 14
August 2001	10	650,000,000	6,500,000	390,870,000	3,908,700	Capital increase from	－	Note 15

Year Month	Issuing price	Authorized capital	Authorized capital	Paid-incapital	Paid-incapital	Remarks	Remarks	Remarks
		Number of shares	Amount	Number of shares	Amount	Sources of capital stock	Investment by property other than cash	Others
						earnings 454,672.4 Capital reserve 162,383 Employee bonus43,984.6
October 2002	10	650,000,000	6,500,000	410,413,500	4,104,135	Capital reserve 195,435	－	Note 16
July 2004	10	650,000,000	6,500,000	443,747,500	4,437,475	Capital increase in cash 333,340	－	Note 17
October 2004	10	650,000,000	6,500,000	443,932,684	4,439,327	Corporate bond conversion 1,851.84	－	Note 18
September 2005	10	650,000,000	6,500,000	479,862,631	4,798,626	Capital increase from earnings 221,966.34 Corporate bond conversion 137,333.13	－	Note 19
November 2005	10	650,000,000	6,500,000	488,916,811	4,889,168	Corporate bond conversion 90,541.8	－	Note 20
February 2006	10	650,000,000	6,500,000	504,575,660	5,045,756	Corporate bond conversion 156,588.49	－	Note 21
April 2006	10	650,000,000	6,500,000	511,691,920	5,116,920	Corporate bond conversion 71,162.60	－	Note 22
June 2006	10	650,000,000	6,500,000	511,808,199	5,118,082	Corporate bond conversion 1,162.79	－	Note 23
August 2008	10	650,000,000	6,500,000	552,752,855	5,527,529	Capital increase from earnings409,446.56	－	Note 24
October 2009	10	650,000,000	6,500,000	569,175,841	5,691,758	Capital increase from earnings164,229.86	－	Note 25
November 2011	10	650,000,000	6,500,000	564,912,841	5,649,128	Cancellation of treasury stocks42,630.00	－	Note 26
August 2016	10	650,000,000	6,500,000	552,246,841	5,522,468	Cancellation of treasury stocks 126,660.00	－	Note 27
October 2018	10	650,000,000	6,500,000	546,487,841	5,464,878	Cancellation of treasury stocks 57,590.00	－	Note 28
July 2022	10	750,000,000	7,500,000	491,839,057	4,918,391	Capital reduction in cash 546,487.84	－	Note 29
March 2024	10	750,000,000	7,500,000	491,839,505	4,918,395	Corporate bond conversion 448	－	Note 30
Note 1: Approved by the Ministry of Economic Affairs through No. 107315 dated 9.5.1981. Note 2: Approved by the Ministry of Economic Affairs through Jing-(82)-Shang No. 125704 dated 7.13.1984. Note 3: Approved by the Ministry of Economic Affairs through Jing-(76)-Shang No. 44559 dated 8.31.1987. Note 4: Approved by the Ministry of Economic Affairs through Jing-(77)-Shang No. 34248 dated 11.8.1988. Note 5: Approved by the Ministry of Economic Affairs through Jing-(78)-Shang No. 131555 dated 10.24.1989. Note 6: Approved by the Ministry of Economic Affairs through Jing-(78)-Shang No. 100972 dated 2.22.1990. Note 7: Approved by the Ministry of Economic Affairs through Jing-(79)-Shang No. 116164 dated 8.15.1990 Note 8: Approved by the Ministry of Economic Affairs through Jing-(80)-Shang No. 128213 dated 12.16.1991. Note 9: Approved by the Ministry of Economic Affairs through Jing-(80)-Shang No. 119429 dated 10.20.1993. Note 10: Approved by the Ministry of Economic Affairs through Jing-(85)-Shang No. 123399 dated 9.26.1996. Note 11: Approved by the Ministry of Economic Affairs through Jing-(86)-Shang No. 124415 dated 8.21.1997. Note 12: Approved by the Ministry of Economic Affairs through Jing-(87)-Shang No. 123590 dated 8.11.1998. Note 13: Approved by the Ministry of Economic Affairs through Jing-(88)-Shang No. 128130 dated 8.13.1999. Note 14: Approved by the Ministry of Economic Affairs through Jing-(089)-Shang No. 128241 dated 8.9.2000. Note 15: Approved by the Ministry of Economic Affairs through Jing-Shou-Shang-Tzi No. 09001321030 dated 8.15.2001. Note 16: Approved by the Ministry of Economic Affairs through Jing-Shou-Shang-Tzi No. 09101441560 dated 10.30.2002. Note 17: Approved by the Ministry of Economic Affairs through Jing-Shou-Shang-Tzi No. 09301128880 dated 7.19.2004. Note 18: Approved by the Ministry of Economic Affairs through Jing-Shou-Shang-Tzi No. 09301196590 dated 10.11.2004.

Note 19: Approved by the Ministry of Economic Affairs through Jing-Shou-Shang-Tzi No. 09401176420 dated 9.13.2005.

Note 20: Approved by the Ministry of Economic Affairs through Jing-Shou-Shang-Tzi No. 09401216300 dated 11.4.2005.
Note 21: Approved by the Ministry of Economic Affairs through Jing-Shou-Shang-Tzi No. 09501018770 dated 2.3.2006.
Note 22: Approved by the Ministry of Economic Affairs through Jing-Shou-Shang-Tzi No. 09501072250 dated 4.21.2006.
Note 23: Approved by the Ministry of Economic Affairs through Jing-Shou-Shang-Tzi No. 09501128120 dated 6.29.2006.
Note 24: Approved by the Ministry of Economic Affairs through Jing-Shou-Shang-Tzi No. 09701216680 dated 8.27.2008.
Note 25: Approved by the Ministry of Economic Affairs through Jing-Shou-Shang-Tzi No. 09801279430 dated 12.3.2009.
Note 26: Approved by the Ministry of Economic Affairs through Jing-Shou-Shang-Tzi No. 10001265870 dated 10.22.2011.
Note 27: Approved by the Ministry of Economic Affairs through Jing-Shou-Shang-Tzi No. 10501207710 dated 8.29.2016.
Note 28: Approved by the Ministry of Economic Affairs through Jing-Shou-Shang-Tzi No. 10701133250 dated 10.23.2018.
Note 29: Approved by the Ministry of Economic Affairs through Jing-Shou-Shang-Tzi No. 11101139950 dated 8.4.2022.
Note 30: Not applied for change registration.

II. Shareholder structure

	April 1, 2024 Government agency Financial institution Other juridical persons Individual Foreign institution and foreigner Treasury stock Total 1 22 150 26,439 260 0 26,872 4 43,136,677 106,196,785 238,761,265 103,744,326 0 491,839,057 0.00% 8.77% 21.59% 48.55% 21.09% 0.00% 100.00%	April 1, 2024 Government agency Financial institution Other juridical persons Individual Foreign institution and foreigner Treasury stock Total 1 22 150 26,439 260 0 26,872 4 43,136,677 106,196,785 238,761,265 103,744,326 0 491,839,057 0.00% 8.77% 21.59% 48.55% 21.09% 0.00% 100.00%	April 1, 2024 Government agency Financial institution Other juridical persons Individual Foreign institution and foreigner Treasury stock Total 1 22 150 26,439 260 0 26,872 4 43,136,677 106,196,785 238,761,265 103,744,326 0 491,839,057 0.00% 8.77% 21.59% 48.55% 21.09% 0.00% 100.00%	April 1, 2024 Government agency Financial institution Other juridical persons Individual Foreign institution and foreigner Treasury stock Total 1 22 150 26,439 260 0 26,872 4 43,136,677 106,196,785 238,761,265 103,744,326 0 491,839,057 0.00% 8.77% 21.59% 48.55% 21.09% 0.00% 100.00%	April 1, 2024 Government agency Financial institution Other juridical persons Individual Foreign institution and foreigner Treasury stock Total 1 22 150 26,439 260 0 26,872 4 43,136,677 106,196,785 238,761,265 103,744,326 0 491,839,057 0.00% 8.77% 21.59% 48.55% 21.09% 0.00% 100.00%	April 1, 2024 Government agency Financial institution Other juridical persons Individual Foreign institution and foreigner Treasury stock Total 1 22 150 26,439 260 0 26,872 4 43,136,677 106,196,785 238,761,265 103,744,326 0 491,839,057 0.00% 8.77% 21.59% 48.55% 21.09% 0.00% 100.00%	April 1, 2024 Government agency Financial institution Other juridical persons Individual Foreign institution and foreigner Treasury stock Total 1 22 150 26,439 260 0 26,872 4 43,136,677 106,196,785 238,761,265 103,744,326 0 491,839,057 0.00% 8.77% 21.59% 48.55% 21.09% 0.00% 100.00%
Shareholder structure Quantity	Government agency	Financial institution	Other juridical persons	Individual	Foreign institution and foreigner	Treasury stock	Total
Number of people	1	22	150	26,439	260	0	26,872
Number of sharesheld	4	43,136,677	106,196,785	238,761,265	103,744,326	0	491,839,057
Shareholding ratio	0.00%	8.77%	21.59%	48.55%	21.09%	0.00%	100.00%

III. Distribution of shareholders

Distribution of shareholdings

ibution of shareholders Distribution of shareholdings	ibution of shareholders Distribution of shareholdings	ibution of shareholders Distribution of shareholdings	ibution of shareholders Distribution of shareholdings	ibution of shareholders Distribution of shareholdings
Face value of NT$10 per share April 1, 2024 Shareholding classification Number of shareholders Number of shares held Shareholding ratio 1 to 999 17,301 3,732,840 0.76% 1,000 to 5,000 15,586 27,065,682 5.50% 5,001 to 10,000 1,241 9,410,728 1.91% 10,001 to 15,000 312 3,878,815 0.79% 15,001 to 20,000 171 3,093,456 0.63% 20,001 to 30,000 153 3,833,571 0.78% 30,001 to 40,000 87 3,095,094 0.63% 40,001 to 50,000 56 2,555,314 0.52% 50,001 to 100,000 149 11,076,787 2.25% 100,001 to 200,000 108 14,908,235 3.03% 200,001 to 400,000 96 28,236,552 5.74% 400,001 to 600,000 29 14,164,919 2.88% 600,001 to 800,000 15 10,274,200 2.09% 800,001 to 1,000,000 11 10,086,472 2.05% Over 1,000,001 53 346,426,840 70.44% Total 35,368 491,839,505 100.00 %
	Shareholding classification	Number of shareholders	Number of shares held	Shareholding ratio
	1 to 999	17,301	3,732,840	0.76%
	1,000 to 5,000	15,586	27,065,682	5.50%
	5,001 to 10,000	1,241	9,410,728	1.91%
	10,001 to 15,000	312	3,878,815	0.79%
	15,001 to 20,000	171	3,093,456	0.63%
	20,001 to 30,000	153	3,833,571	0.78%
	30,001 to 40,000	87	3,095,094	0.63%
	40,001 to 50,000	56	2,555,314	0.52%
	50,001 to 100,000	149	11,076,787	2.25%
	100,001 to 200,000	108	14,908,235	3.03%
	200,001 to 400,000	96	28,236,552	5.74%
	400,001 to 600,000	29	14,164,919	2.88%
	600,001 to 800,000	15	10,274,200	2.09%
	800,001 to 1,000,000	11	10,086,472	2.05%
	Over 1,000,001	53	346,426,840	70.44%
	Total	35,368	491,839,505	100.00 %

IV. Name list of major shareholders

April 1, 2024

Name list of major shareholders		April 1, 2024
Shares Name of major shareholder	Number of shares held	Shareholding ratio
Chang-Chih Yang New Labor Pension Fund Jui-Ching Li Chen-Tse Yang Fubon Life Insurance Co., Ltd. Jiahui Investment Co., Ltd. Old Labor Pension Fund Discretionary investment account of Cathay Life Insurance managed by JPMorgan Asset Management Public Service Pension Fund Management Board Investment account of Norges Bank under custody of Chase Bank	96,622,217 28,730,520 27,651,870 17,653,216 14,429,900 11,012,760 9,982,040 9,085,000 8,594,300 8,006,110	19.65 % 5.84 % 5.62 % 3.59 % 2.93 % 2.24 % 2.03 % 1.85 % 1.75 % 1.63 %

V. Information on market price, net worth, earnings, and dividends per share in the last two years

Unit: NTD; thousand shares; %

Item	Year	Year	2022	2023
Price per share Marketprice	Max.		102.5	238
	Min.		66.7	85.1
	Average		83.92	153.92
Net value per share Networth	Before distribution		29.43	34.58
	After distribution (Note 1)		25.89	31.05
Earnings per share	Weighted average number of shares(in thousands)		515,578	486,688
	EPS (Note2)		8.86	7.25
Dividends per share	Cash dividends		3.50	3.50
	Bonus stock	capital increase from earnings	─	─
		Stock dividend from capital reserve	─	─
	Accumulated unpaid dividends		─	─
ROI analysis	PE(Note3)		9.47	21.23
	PD (Note 3)		23.98	43.98
	Cash dividendyield(Note 5)		4.17%	2.27%

Source: Audited financial reports.

Note 1: The Company’s 2022 earnings distribution proposal was resolved by the Board of Directors on March 9, 2023, and reported to the shareholders’ meeting on June 14, 2023; the 2023 earnings distribution proposal was resolved by the Board of Directors on March 12, 2024 and is expected to be reported to the shareholders’ meeting on May 30.

Note 2: If retrospective adjustment is required due to share grants, the EPS before and after the adjustment should be listed.

Note 3: PE = Average closing price per share of the current year / EPS.

Note 4: PD = Average closing price per share of the current year / cash dividend per share Note 5: Cash dividend yield = Cash dividend per share / average closing price per share of the current year

VI. Dividend policy and implementation status: The dividend policy stipulated in the company’s

Articles of Incorporation and the dividend distribution proposed by the shareholders’ meeting should be disclosed. Anticipated significant changes to dividend policy, if any, should be stated:

(I) The Company’s dividend policy:

If the Company makes a profit in the year, it shall allocate between 5% and 10% as remuneration for employees, which shall be distributed in either stock or cash, as determined by the board meeting. The recipients of this remuneration shall include the employees of any subordinate companies that meet certain conditions. The Company may allocate no more than 1% of the profit amount above as remuneration for directors, as determined by the board meeting. The distribution of employees’ remuneration and directors’ remuneration shall be reported to the shareholders’ meeting.

However, when the Company still has a cumulative loss, it shall reserve the compensation amount in advance, and then allocate employees’ remuneration and directors’ remuneration according to the proportion in the preceding paragraph.

If there is a surplus in the Company’s annual final accounts, the Company shall first pay taxes and make up for the cumulative loss over the years, and then allocate 10% as the legal reserve and make a provision for or reverse the special reserve in accordance with the law or regulations of the competent authority. If there is still a surplus, the balance shall be added to the accumulated undistributed earnings of the previous year, for the board of directors to draft a distribution proposal and submit it to the shareholders’ meeting for a resolution on the distribution.

The Company’s dividend policy takes the long-term business growth and investment projects into consideration, and also attends to a robust financial structure. The Board of Directors is required to propose a motion for allocation of earnings. The dividends will be distributed in the form of stock dividend or cash dividend subject to the future funding needs and level of dilution of capital stocks. Among other things, the cash dividend shall be no less than 10% of the total distribution for the current year.

(II) Dividend distribution proposed at the current shareholders’ meeting:

For the Company’s 2023 earnings distribution, the Board of Directors resolved on March 12, 2024 to distribute shareholder dividends from earnings of approximately NT$3.50 per share, totaling NT$1,721,436,700, and will be reported to the shareholders’ meeting.

VII. The influence of the stock grants proposed at the current shareholders’ meeting on the operation performance and EPS of the Company: There is no issuance of stock grants time, so this is not applicable.

VIII. Remuneration to employees and directors

(I) The percentage or scope of remuneration to employees and directors as set forth in the Company’s Articles of Incorporation:

According to Article 20 of the Articles of Incorporation, if the Company makes a profit in the year, it shall allocate between 5% and 10% as remuneration for employees, which shall be distributed in either stock or cash, as determined by the board meeting. The recipients shall include the employees of subordinate companies that meet certain conditions. The Company may allocate no more than 1% of the profit amount above as director’s remuneration by the resolution of the board meeting. The distribution of employees’ remuneration and directors’ remuneration shall be reported to the shareholders’ meeting.

According to Article 20-1 of the Company: If there is a surplus in the Company’s annual final accounts, the Company shall first pay taxes and make up for the cumulative loss over the years, and then allocate 10% as the legal reserve and make a provision for or reverse the special reserve in accordance with the law or regulations of the competent authority. If there is still a surplus, the balance shall be added to the accumulated undistributed earnings of the previous year, for the board of directors to draft a distribution proposal and submit it to the shareholders’ meeting for a resolution on the distribution.

According to Article 20-2 of the Articles of Incorporation, in the Company’s dividend policy, consideration shall be given to the Company’s mid and long-term operational growth and investment plan, and the board of directors shall draw up a profit distribution plan while taking into account the goal of a sound financial structure. The decision on the distribution of stock or cash dividend shall be made appropriately depending on the Company’s future capital needs and the degree of equity dilution. The cash dividend shall not be less than 10% of the total amount of distribution for the current year.

(II) The basis of the calculation for the remuneration to employee and directors, the calculation of the number of shares for the share-based remuneration to employees, and the accounting treatment of any discrepancies between the actually distributed calculated amounts: No stock dividend is distributed in the current period, so this is not applicable.
(III) Distribution of remuneration approved by the Board of Directors:
The amount of the remuneration to employees and directors distributed in cash or share:

The Company intends to appropriate NT$298,000,000 as remuneration to employees and NT$43,000,000 as remuneration to directors for 2023.

The amount of the remuneration to the employees in the form of stocks, and share of that amount as a percentage of the sum of the net income after tax stated in the separate or individual financial reports for the current period and total employee remuneration: No employee remuneration is distributed in share for the current period, so this is not applicable.
(IV) The actual distribution of the remuneration to employees and directors in the previous year (including the number and amount of shares distributed and the stock price); if there is any difference from the recognized amount of the remuneration to the employees and directors, the difference, the reason for the difference, and the treatment shall be disclosed: The Company does not have this situation, so this is not applicable.
IX. Repurchase of the Company’s shares: The Company’s previous repurchase of treasury shares has been completed.

X. Status of corporate bonds:

(I) Issuance of corporate bonds

(I) Issuance of corporate bonds	(I) Issuance of corporate bonds
Type ofcorporate bond		Second domestic unsecured corporate bonds
Issue date		December5,2023
Face value		NTD 100 thousand
Issuance and tradinglocation		N/A
Issuing price		NTD 107.16
Totalamount		NTD 4billion
Interestrate		0%
Term		5 years;maturity date:December5,2028
Guaranteeinginstitution		None
Trustee		Taipei FubonCommercial BankCo.,Ltd.
Underwriter		FubonSecurities Co.,Ltd.
CPA		Ya-WenChiu
CPA		Chao-Ling Chenand Chun-YiChang
Terms of repayment		Lump-sum repayment of principal upon maturity
Outstanding principal		As of April 1, 2024, the total unpaid principal amounted to NT$3,999,900 thousand.
Terms of redemption or early repayment		Please refer to Articles 18 and Article 19 of the Issuance and Conversion Regulations
Restrictive clause		N/A
Name of credit rating agency, rating date, corporate bond rating results, etc.		None
Other rights	Amount of converted (exchanged or subscribed) common shares, overseas depositary receipts or other securities up to the publication date of the annual report	As of April 1, 2024, a total of 448 common shares have been converted, totaling NT$100,000.
	Regulations governing the issuance and conversion (exchange orsubscription)	Please refer to the Rules for Issuance and Conversion
Possible equity dilution due to the regulations governing the issuance, conversion, exchange or subscription as well as the issuance terms and conditions, and the impact on the equity of the existing shareholders		The total face amount of the convertible bonds issued was NT$4 billion. Since the bond has a 5-year tenor, debtors may request conversion at different points of time resulting in a delay of earnings per share. However, such a delay do not have any material impact on the existing shareholders’equity.
Name of custodian for underlying shares		N/A

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Information on convertible corporate bonds

Unit: NTD thousand

		Unit: NTD thousand	Unit: NTD thousand
Type of corporate bond		Second domestic unsecured corporate bonds
Item	Year	2023	As of March 31, 2024 of the current year
Market price of convertible bonds	Max.	118.2	130.05
	Min.	109.8	110.05
	Average	113	119.71
Conversion price		223.1	223.1
Issue date		December 5, 2023
Conversion price at issuance		223.1
Method of performing conversion obligation		Issuance of new shares

XI. Status of preferred stock: The Company does not have this situation, so this is not applicable.
XII. Issuance of overseas depository receipts: The Company does not issue overseas depository receipts, so this is not applicable.
XIII. Issuance of Employee Stock Option Certificates: The Company does not have this situation, so this is not applicable.
XIV. Mergers and acquisitions (including mergers, acquisitions and demergers): The Company has no mergers and acquisitions, so this is not applicable.

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XV. Implementation status of financing plans:

Unit: NTD thousand

	Unit: NTD thousand	Unit: NTD thousand	Unit: NTD thousand	Unit: NTD thousand
Issuance plan	Second domestic unsecured convertible corporate bonds
Issuance amount	40,000 certificates issued, each with a face value of NT$100,000, and the total amount issued is NT$4 billion. (Accumulated amount: NT$4,286,239 thousand)
Planning	Utilizationof funds
	Amount to be drawndown	Amount actually drawndown	Period	Progress
Repayment of bank loan	3,110,000	3,110,000	2023 Q4	100%
Replenishment of working capital	1,176,239	1,176,239	2024Q1	100%
Expected benefits	1. Reduction of interest burden The Company will repay the bank loan of NT$3,110,000 thousand in the same quarter right after the funds are raised. After taking into account the repayment amount, interest rate level and loan period, and based on the interest rate of the bank loan, it is estimated that an interest expense of Nt$5,160 thousand can be saved in 2023 and NT$61,918 thousand can be saved in subsequent years. 2. Replenishment of working capital NT$1,176,239 thousand from the funds acquired under the fund raising plan will be used for replenishment of working capital in 2024Q1. If the bank loan is replaced with the funds raised, based on the average interest rate of the Company’s short-term borrowings, It is estimated that an interest expense of NT$27,021 thousand will be saved every year in the future. 3. Enhancement of the financial structure and improvement of the solvency With the conversion of convertible bond investors into common shares in the future, it will help to improve the debt ratio. The short-term and long-term bank loans will be fully repaid and the working capital will be replenished in accordance with the capital utilization plan. The proportion of the current liabilities in the total assets will fall to 31.99%, the current ratio will increase to 183.27%, and the quick ratio will increase to 142.73%. These will have a positive effect on the Company’s solvency and can increase the self-owned capital ratio, increase the flexibility of capital allocation, and strengthen the Company’s capability of coping with the risks of changes in the external environment.

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FIVE. Operational Overview

I. Scope of Operation:
(I) Scope of business
1. Main business:
  - (1) CC01080 Electronic Components Manufacturing.
  - (2) CC01110 Computer and Peripheral Equipment Manufacturing.
  - (3) CC01990 Other Electrical Engineering and Electronic Machinery Equipment Manufacturing.
  - (4) CA04010 Surface Treatments.
  - (5) F119010 Wholesale of Electronic Materials.
  - (6) F219010 Retail Sale of Electronic Materials.
  - (7) F401010 International Trade.
  - (8) I501010 Product Designing.
  - (9) ZZ99999 All business items that are not prohibited or restricted by law, except those that are subject to special approval.
2. Weight of revenue: (consolidated)

Unit: NTD thousand

Business items	2022 (Consolidated)	2022 (Consolidated)	2023 (Consolidated)	2023 (Consolidated)
	Turnover	Weight of revenue	Turnover	Weight of revenue
PCB	32,785,064	100.00%	30,043,950	100.00%
Total	32,785,064	100.00%	30,043,950	100.00%

Current products of the Company and new products planned to be developed:
(1) Current products of the Company

The Company’s current product is PCB. The Company’s products are mainly focused on communication and computer-related products, such as servers, network communication boards, notebook boards, base stations, mobile phones, and tablets. In recent years, the Company has been developing high-end products, including AI and cloud computing Servers, network communication PCBs, low-orbit satellite antenna PCBs , storage equipment PCBs, connected internet equipment PCBs, down to consumer products such as notebook computer PCBs and automotive PCBs and other high value-added products.

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(2) New products planned to be developed
- A. Development of cross-shaped slot vertical conduction technology
- B. Development of high-end HDI deep skip via technology and equipment rank HDI
- C. Development of high-density wafer test board technology
- D. Development of the technology for high aspect ratio 30 with a micro bore diameter of 0.15mm
- E. Development of material applications and technologies for next-generation servers
- F. Development of multiple net via technology
- G. Development of the technology for heterogeneously bond sintered paste
- H. Development of 800G network communication board technology and research on electrical property
- I. Development of air gap technology for low-orbit satellites and ground receivers
- J. Development of ladder board thinning technology for HDI product applications
- K. Development of asymmetric sequential technology
- L. Development of technology for local electroplating and fine circuits (VIPPO design)
(II) Industry overview:

1. Current status and development of the industry

The imbalance between supply and demand due to the pandemic in 2021 and 2022 led to over-inflation of global consumption. In the post-pandemic era, the industry faced the pressure of destocking and the raising interest rate for suppression of the inflation. In 2023, the global PCB industry suffered a dramatic recession due to the disappearance of the pandemic boost. According to the Industry, Science & Technology International Strategy Center, ITRI, the global PCB production value in 2023 was US$73.9 billion with a decline of 15.6%. Despite the negative factors such as weak end demands, international conflicts, high inflation, and high inventories, as the destocking process is completed, the market has gradually stabilized and the demand has recovered since the second half of 2023. Thanks to the low base period in 2023, the overall electronics industry will experience a higher growth momentum in 2024, and the PCB industry is expected to usher in the next growth cycle due to inventory replenishment. Although it takes time for the overall consumer demand to recover to a positive cycle, the industry can still benefit from the

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upgrade of the specifications of some products. In 2024, the global PCB production value is expected to recover to US$78.2 billion, up by 6.3% from 2023. When the growth momentum of the overall consumer market gradually approaches the performance of the global economy, the growth rate of the global PCB production value will return to a long-term average of 4% to 5%.

In the medium term and long term, the global PCB industry is developing in the direction of high precision, high density, high integration and high reliability. Among them, the technology upgrades of 5G communication, autonomous driving, smart wearables, and IoT products have become more demanding for advanced semiconductor packaging. The rapid and iterative computing and application of new artificial intelligence, such as ChatGPT, have increased the demand for global computing power, and the PCB downstream industries such as cloud computing and edge computing have also flourished. The proportion of high-end products such as multi-layer, HDI and IC substrate continues to increase. Looking to the future, with the weakening marginal impact of inflation and the steady recovery of the economy and consumer demand, the PCB industry is expected to grow again.

2. Correlation of upstream, midstream and downstream industries

The Company mainly manufactures and sells PCB products. The main upstream raw materials include chemical materials such as substrate, film, copper foil, dry film, oil film, and etching liquid, covering the petrochemical, metal, and electronic components industries. The downstream customers include the information industry, communication industry, consumer electronics, industrial and medical instruments and other industries. PCBs play the loading and relaying roles for electronic components. For example, information, communication and consumer products need PCBs to play the role of support and connection for electronic components. They are indispensable part of all electronic products.

105

The upstream, midstream and downstream industries related to the Company are presented below:

==> picture [488 x 259] intentionally omitted <==

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

Upstream Midstream Downstream
Copper foil Fiberglass epoxy substrate Single-layer Information product
Fiberglass cloth Communication
Paper substrate
product
Substrate
Consumer and
Composite substrate HDI
automotive goods
Industrial and medical
Resin Special substrate instrument
Multi-layer
Dry film/oil film/etching
liquid and electroplating Military and aerospace
chemicals industry
----- End of picture text -----

3. Product development trends

In 2023, faced with high-level inflation, poor consumer electronics demand, and the disappearance of the stay-at-home economy, global demand was weak, and semiconductors entered the stage of inventory adjustment. The PCB industry is in recession due to weak demand for consumer products. In 2023, the output value of Taiwan’s PCB industry declined by nearly 16%. However, the Industry, Science & Technology International Strategy Center of ITRI expects the inventory adjustment to come to an end. Taiwan will enter the recovery stage, coupled with the continued demand for electric vehicles, artificial intelligence (AI) servers, and satellite communications. It is estimated that the growth of Taiwan’s PCB industry can reach 8.1% in 2024.

The growth of automotive PCB production value is mainly due to the increase in the penetration rate of electric vehicles. The average PCB value per BEV is about 5 to 6 times that of traditional combustion vehicles. The electronic control system has the highest PCB value in the vehicle, accounting for about 5% At present, the BMS (Battery Management System) in the electronic control system is mainly connected by wire harnesses. Under the trend of lightweight electric vehicles, flexible board FPC will be gradually adopted in the future, further increasing the number of electronic control PCB value of the electronic control system. In addition, as the level and penetration rate of autonomous driving continue to increase, the average number of electronic products such as

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lenses and radars per vehicle will also continue to increase. At present, automotive PCBs are mainly based on 4 to 8 layers, while autonomous driving systems are mostly made of HDI boards that have a higher unit price, about 3 times that of the 4 to 8 layer boards. The price of the HDI used in the LIDAR (Light Detection and Ranging) of self-driving systems above L3 (conditional full-automatic driving; that is, the hand still cannot be separated from the steering wheel for too long) may be as high as tens of US dollars. This will be the main source of the increase in the automotive PCB production value in the future.

Due to the vigorous development of 5G, AI, cloud computing and other applications, the market requires higher transmission speed, lower latency network communication, and larger storage capacity, enabling server shipments to grow against the trend. Machine learning can analyze huge amounts of data to provide accurate judgments and predictions. AI is widely used in finance, media, manufacturing, and retail industries to precisely manage production processes, improve sales to target groups, provide autonomous driving and voice assistant and other applications.

The AI server is an advanced computing system specially designed for processing complex AI training and inference. The AI server is optimized for AI training and inference tasks. It is equipped with powerful CPUs, GPUs, or dedicated AI accelerators to accelerate AI workloads, efficiently process massive amounts of data, and execute complex AI calculations. Compared to ordinary servers, AI servers have the ability to process complex mathematical calculations, which makes them suitable for specialized AI tasks such as AI research, data analysis, or deployment of AI applications. AI servers can significantly improve performance, speed up training and inference time, and make AI processing tasks more efficient by leveraging artificial intelligence technology.

In the face of high inflation and weak post-pandemic economic recovery, domestic and foreign companies have started to lay off employees and reduce capital expenditures. However, the rise of the chatbot ChatGPT has triggered a new wave of generative AI upsurge. In consideration that development of the AI applications is full of vitality and the cloud service companies in the USA are accelerating the introduction of AI servers, these have great growth potential in the future.

4. Industry competition

Taiwan’s PCB industry is internationally competitive and is the world’s largest producer. According to the statistics of the Taiwan Printed Circuit Association (TPCA) and the Industry, Science & Technology International Strategy Center, ITRI, Taiwan’s production value and market share ranked first in the world in 2023. China, Japan and South Korea are the second to fourth largest countries, respectively. Looking at the changes in the global PCB supply

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layout, China-funded factories have benefited from market factors in the past few years, and the growth of their production value has generally been faster than Taiwan, Japan, and South Korea, making their market share climb rapidly. However, due to external factors such as sluggish end demand, tight power supply, and epidemic prevention needs, the growth of production value in the past two years has been suppressed, and Taiwan, Japan, and South Korea have also been affected by the same factors. Nevertheless, the demand for substrates has become a locomotive to offset the negative factors or even contribute to the growth, and the market share has not changed much.

(III) Overview of technology and R&D:

R&D investment and successfully developed technologies or products in the most recent year

R&D investment in the most recent year

R&D investment in the most recent year	R&D investment in the most recent year	R&D investment in the most recent year	R&D investment in the most recent year
Unit: NTD thousand Year Item 2021 2022 2023 R&D investment (consolidated) 623,220 718,228 802,580 Operating revenue (consolidated) 26,607,474 32,785,064 30,043,950 R&D investment as a percentage of operating revenue 2.34% 2.19% 2.67%
Year Item	2021	2022	2023
R&D investment (consolidated)	623,220	718,228	802,580
Operating revenue (consolidated)	26,607,474	32,785,064	30,043,950
R&D investment as a percentage of operating revenue	2.34%	2.19%	2.67%

2.Successfully developed technologies or products
(1) Development of low-orbit satellite antenna PCB
(2) Multi-layer inlay test
(3) Applications of the 2G pre-pressing chemical introduced to high-frequency PCBs
(4) Patented - Drilling system (Precision back drill)
The direction of future research and development and the expected investment in research and development.

Unit: NTD thousand	Unit: NTD thousand	Unit: NTD thousand
	Item	Estimated
		investment in
		R&D
1	Development of cross-shaped slot vertical conduction technology
		25,000

2	Development of high-end HDI deep skip via technology	120,000

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	Item	Estimated
		investment in
		R&D
	and equipment rank HDI
3	Development of high-densitywafer test board technology	35,000
4	Development of the technology for high aspect ratio 30 with a micro bore diameter of 0.15mm	30,000
5	Development of material applications and technologies for next-generation servers	25,000
6	Development of multiple net via technology	10,000
7	Development of the technology for heterogeneously bond sinteredpaste	35,000
8	Development of 800G network communication board technologyand research on electricalproperty	25,000
9	Development of air gap technology for low-orbit satellites andground receivers	10,000
10	Development of ladder board thinning technology for HDIproduct applications	20,000
11	Development of asymmetric sequential technology	20,000
12	Development of technology for local electroplating and fine circuits(VIPPO design)
		20,000

	Total amount	375,000

(IV) Long-term and short-term business development plans:
Short-term business development plan:
- (1) Continuous improvement of the production technology for more layers, thick copper and HDI products

Development of high-layer and high value-added products. As electronic systems develop toward lightness, thinness, compactness, and high reliability, PCB technology upgrades toward a polar direction of high-density wiring, thinness, fine lines, small vias, and highly reliable thick copper. In line with the demand for cloud technology, the demand for high-layer servers and network communication PCBs will increase.

With the long-term effort of the professional R&D personnel, the Company’s production technology has been continuously improved. At present, the Company has the mass production capability to produce micro vias, fine lines, 52-layer boards, and thick copper with difficult processes.

(2) Improvement of the on-time delivery rate

Delivery time is as important as quality to customers and it shall not be allowed for the customers to stop the operation of their production

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lines and suffer significant tangible and intangible losses. Most of our customers are world-renowned manufacturers. However, too many customers may make us unable to provide attentive services and thus be unable to win more orders. Only by carefully selecting customers can we provide the best customer service and improve production scheduling to increase the on-time delivery rate for customers.

(3) Improvement of the process yield rate to reduce production costs

Improving production efficiency, shortening manufacturing time, and improving process yields will help reduce scrap rate and production costs, and accelerate the delivery to meet customer needs.

(4) Reduction of operating expenses

We will continue to develop new suppliers and materials to reduce the price of raw materials. R&D and production of higher value-added products will still be implemented in Taiwan, while low-end high-volume products will be transferred to factories in Mainland China, where production costs are lower.

(5) Streamlining of manpower and increase of productivity

In the future, the Zhongli Factory will focus on producing high value-added products and quality will be emphasized more than quantity. The number of employees will not be increased, but the output value of each employee will be increased. At the same time, the product structure of the factories in Mainland China will be optimized toward the direction of smart production featuring less labor, more automation, and more environmental protection.

Long-term business development plan:
- (1) We will continue to dedicate ourselves to higher-end PCBs. The products are as follows:
  - *Information board – 20 to 52 layer boards for workstation, servers and other applications.
  - *Internet – Networking, Router, 400, 800G network communication board, high-end storage equipment.
  - *20 to 52 Layer – Backplane, industrial computer
  - *Communication board – Build up board, 5G base station board
  - *Wafer testing board – Wafer test tooling board, semiconductor equipment board, IC test board
- (2) We will strive for more orders for high value-added AI products, cloud server boards, network communication, and base station boards.
- (3) Shortening lead time and improvement of customer satisfaction
II. Market, production and sales overview:

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(I) Market analysis:

1. Locations where products and services are provided:

Unit: NTD thousand; %

Sales region	Taiwan	America	Asia	Mainland China	Other regions	Total
2023	10,523,829	3,564,460	4,454,197	10,858,842	642,622	30,043,950
2022	9,141,995	2,461,592	10,117,567	10,207,187	856,723	32,785,064

Source: Compiled by the Company

2. Market share

Share of PCB manufacturers in the sales of all the TWSE/GTSM listed companies

Unit: NTD 100 million

Manufacturer	2021	Share	2022	Share	2023	Share
Compeq	630	8.05%	764	9.03%	670	9.56%
GCE	266	3.40%	328	3.88%	301	4.30%
WUS	53	0.68%	51	0.60%	35	0.50%
Unimicron	1,046	13.36%	1,404	16.59%	1,040	14.84%
Hannstar Board	570	7.28%	476	5.62%	430	6.14%
Unitech	135	1.72%	174	2.06%	150	2.14%
Tripod	630	8.05%	657	7.76%	589	8.40%
Chinpoon	162	2.07%	175	2.07%	167	2.38%
TPT	275	3.51%	219	2.59%	189	2.70%
Kinsus	357	4.56%	424	5.01%	268	3.82%
Others	3,706	47.33%	3,792	44.80%	3,169	45.22%
Total	7,830	100.00%	8,464	100.00%	7,008	100.00%

Source: PCB Information Magazine; ITRI Economic and Trade Center; TPCA

3. Future supply, demand and growth of the market:

Affected by the disappearance of epidemic dividends, the global PCB industry finally saw the light of day in the third quarter of 2023 after a year of correction. Looking at 2023, TPCA pointed out that despite the 15.6% decline compared to the previous year due to the weak terminal demand, international conflicts, high inflation, high inventory and other negative factors, the production value was slightly higher than the pre-pandemic level.

According to TPCA, sales of end products rebounded in the third quarter. Although most sales are only reflected in the inventory

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consumption of channels or customers, it will take time for the sales to be extended to the upstream component supply chain. It is believed that the PCB industry in Taiwan will embrace a new growth cycle after the destocking. It is estimated that the annual output value in 2024 will reach US$78.2 billion, with an annual growth rate of 6.3%.

Overall, TPCA stated that as global inflation cools down, the pace of interest rate hikes will slow down. This will help stabilize consumer confidence. Moreover, customers will replenish the goods after inventory depletion. Therefore, the future of electronic end products in 2024 will be promising. The recovery of the circuit board industry from the bottom in the next year has become a consensus. Optimistic development of the AI, high-performance computing (HPC), electric vehicles and other applications will continue to promote the increase of the consumer demand.

4. Competitive niches

(1) Outstanding production technologies and R&D capabilities

The Company has professional and technical personnel, and continuous improvement of process capabilities. R&D personnel prepare technical deployment for new product applications in advance. In addition to various approved patents, the Company has many new patents pending. The outstanding production technologies and R&D capabilities are one of the key factors that distinguish the Company from the competitors in the industry.

(2) High business strength and good long-term cooperative relationship with customers

The Company is the largest server PCB manufacturer in Taiwan with the world-class server companies as the main customers. In recent years, the export ratio is over 80% and the sales targets are mostly well-known manufacturers and assembly companies. The customers are engaged in business in different industries across different continents, including information, communication, and internet. The Company has established good long-term cooperative relationships with customers

(3) Regional division of labor for production and flexible production and management

In line with the establishment of factories in Mainland China and Southeast, after setting up the factory in Zhongli, a plant was established in Suzhou, China, in 2000 and Changshu Plant began mass production in 2006. In 2011, the second HDI production capacity, Changshu Plant No. 2, was set up. Currently, the total monthly production capacity in China has reached 3 million square feet, accounting for more than 60% of the Group’s total monthly production capacity of 4 million square feet. In

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addition to effectively reducing costs, the Company can adjust the shipping location in alignment with customer’s operating model to assure the stability of orders. A new plant was established in Thailand in 2023, and it is currently under construction. The plant is expected to go into mass production in the first half of 2025 in the hope to ease the tension of existing production lines and satisfy the demand for a diverse supply chain of clients.

Favorable and unfavorable factors for development prospects and countermeasures

(1) Favorable factors:

A. The domestic industry has a complete upstream, midstream and downstream integration system, and is highly competitive in the industry.
B. The application market of new products is focused on servers and network communication, and can grow tremendously with the development of cloud technologies.
C. Most of the customers are world-renowned companies in the information and communication electronics industry, which helps the Company to obtain the latest R&D information and define future development directions.
(2) Unfavorable factors and countermeasures:
A. The industry is highly polluting with high environmental protection standards and high pollution prevention costs. Countermeasures:
a. Mitigate the impact of greenhouse effect and work hard to reduce greenhouse gas emissions through the replacement of highly energy-consuming equipment, the introduction of low-carbon technology and process improvement.
b. Reduce the environmental impact of waste water: especially for the impact of heavy metal contamination on river basin, and the measure to control and reduce the copper ion concentration of effluent has been adopted.
c. In response to circular economy, implement waste reclamation and resue to actively achieve the goal of zero waste to landfill.
B. The capital expenditure is high, the depreciation is high, and the return is slow.

Countermeasures:

a. Prevent excessive capital expenditure and respond to temporary production shortages through outsourcing.
b. Sell idle equipment to reduce the pressure from fixed depreciation,
C. PCB manufacturers have expanded their production capacity in China

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and Southeast Asia, resulting in price competition with other companies in the industry.

Countermeasures:

a. Improve the on-time delivery rate of orders to meet customer needs.
b. Strengthen target management to reduce scraps.
c. Upgrade technology and strive for higher value-added board sales.
D. Rising labor costs and labor shortage abroad. Countermeasures:
a. Improve automation Production to reduce reliance on labor.
b. Stabilize quality and improve management efficiency.
E. The growth of end products is slow Countermeasures:
a. Develop new application areas.
b. Enter niche markets

(II) Supply of main raw materials:

The Company is a professional manufacturer of printed circuit boards, mainly including substrates, films, copper foil, dry film and various electroplating chemicals. The procurement sources are major domestic manufacturers and the long-term supply relationship is good and stable. In terms of the most important raw materials – substrates and films, all of them are sourced from famous leading domestic manufacturers with good reputation. They have good long-term stable supply and demand relationships with the Company and the price can appropriately reflect the market conditions of the information and electronics industry. In addition, the above-mentioned companies are all located in neighboring cities and counties in the northern region. This is convenient for the timely delivery of goods and the Company can save warehousing costs.

(III) Purpose of main products and production process:

1. Purpose of main products

Mainproduct	Mainpurpose
PCB	Personal computers, fax machines, industrial automation related equipment, numerical control equipment, communication equipment, smart phones, servers, industrial computers,semiconductor testingequipment

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2. Production process

Multi-layer PCB production process introduction

==> picture [397 x 681] intentionally omitted <==

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

Material issue Film removal,
etching, tin and
lead stripping
Pre-treatment of AOI
inner layer inspection
Semi-finished
product testing
Inner layer
exposure
Pre-treatment of
solder mask
printing
Inner layer
development and
etching
AOI Solder mask
inspection printing
Inner layer
browning
Pre-baking
Combination
Solder mask
exposure
Pressing
Post solder mask
baking
Drilling
Text printing
PTH + primary
copper
Gold-plated
finger
Back drill
Chemical gold + Organic
Soldering Preservative
(OSP)
Vacuum plug
hole
Molding
PTH + primary
----- End of picture text -----

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==> picture [388 x 284] intentionally omitted <==

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

copper
Final cleaning
Pre-treatment of
out layer
Semi-finished
product testing
Outer layer Finished
exposure product
inspection
Outer layer Packaging
development
Secondary Shipping
copper/tin lead
plating
----- End of picture text -----

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(IV) Major suppliers and customers in the last two years:

List of major suppliers in the most recent two years (accounting for more than 10% of net purchase)

Unit: NTD thousand

		2022 (consolidated)	2022 (consolidated)			2023 (consolidated)	2023 (consolidated)
Item	Title	Amount	Proportion to the net purchase of the year (%)	Relationship with the issuer	Title	Amount	Proportion to the net purchase of the year (%)	Relationship with the issuer
1	CompanyA	2,401,699	13.67%	None.	CompanyA	3,747,122	24.80%	None.
2	CompanyB	2,037,221	11.60%	None.	CompanyB	1,717,258	11.37%	None.
3	CompanyC	1,836,870	10.46%	None.
	Others	11,286,990	64.27%		Others	9,642,826	63.83%
	Netpurchase	17,562,780	100.00%		Netpurchase	15,107,206	100.00%

Note 1: List the names of the suppliers accounting for more than 10% of the total purchase in the most recent two years, and the amount and proportion of the purchase. However, a code can be used if the contract stipulates that the name of the supplier shall not be disclosed or if the transaction partner is an individual and not a related party, and may be given a code name.

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2. List of major customers in the most recent two years (accounting for more than 10% of net sales)

Unit: NTD thousand

		2022 (consolidated)	2022 (consolidated)			2023 (consolidated)	2023 (consolidated)
Item	Title	Amount	Proportion to the net purchase of the year (%)	Relationship with the issuer	Title	Amount	Proportion to the net purchase of the year (%)	Relationship with the issuer
1	Company B	7,695,509	23.47%	None.	Company A	5,263,967	17.52%	None.
2	Company A	4,428,650	13.51%	None.	Company B	5,066,472	16.86%	None.
3	Company C	4,354,182	13.28%	None.	Company C	3,526,879	11.74%	None.
4					Company D	3,472,254	11.56%	None.
	Others	16,306,723	49.74%		Others	12,714,378	42.32%
	Net purchase	32,785,064	100.00%		Net purchase	30,043,950	100.00%

Note 1: List the names of the customers accounting for more than 10% of the total sales in the most recent two years, and the amount and proportion of the sales. However, a code can be used if the contract stipulates that the name of the customer shall not be disclosed or if the transaction partner is an individual and not a related party, and may be given a code name.

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(V) Production volume and value in the most recent two years

Unit: NTD thousand

Production volume/value Year Main products (or by department)		2022			2023
	Production capacity	Production volume	Production value	Production capacity	Production volume	Production value
PCB	48,000,000	21,499,835	25,468,406	48,000,000	15,151,924	22,667,990

Note: This is consolidated information. The production capacity in this table is gross sq ft and net sq ft. Product portfolio may affect the output and the capacity figures are for reference only.

(V) Sales volume and value in the most recent two years

Unit: NTD thousand

					Unit: NTD thousand	Unit: NTD thousand	Unit: NTD thousand	Unit: NTD thousand
Year Sales volume/value Main product	2022				2023
	Domestic sales		Export sales		Domestic sales		Export sales
	Volume	Value	Volume	Value	Volume	Value	Volume	Value
PCB	15,953,236	19,349,182	6,173,828	13,435,882	11,627,024	21,382,671	4,962,235	8,661,279

III. Information on employees in the most recent two years and up to the date of publication of the annual report:

Year		2022	2023	113.3.31
Employee Number of people	Indirect employee	1,606	1,671	1,671
	Direct labor	5,530	4,860	4,683
	Total	7,136	6,531	6,354
Average age		30.7	34.37	34.82
Average service	years	4.6	6.06	6.13
Education background	Doctoral degree	1	1	1
	Master’s degree	86	101	101
	University/college	1,973	2,074	2,053
	Senior high school	3,535	3,565	3,429
	Below high school	1,541	790	770

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IV. Information on environmental protection expenditure:

(I) Losses due to environmental pollution in the most recent year and up to the date of annual report and countermeasures:

annual report and	countermeasures:
Year Item	2022	2023	Current year up to the publication date of the annual report
Pollution status	None.	None.	None.
Punishment	None.	None.	None.
Countermeasure	None.	None.	None.

(II) Estimated environmental protection expenditure in the next two years

Year Item	2022	2023
Proposed purchase of pollution control equipment or the scope of expenses	1. Expenses on additional wastewater equipment, consumables and chemicals 2. Expenses on additional installation and maintenance of air pollution control equipment 3. Purchase ofgreen electricity	1. Expenses on additional wastewater equipment, consumables and chemicals 2. Expenses on additional installation and maintenance of air pollution control equipment 3. Purchase ofgreen electricity
Expected improvements	Compliance with environmental standards and cost reduction	Compliance with environmental standards and cost reduction
Amount	NT$157,851thousand	NT$234,900thousand

V. Labor–management relations

(1) Employee welfare measures, continuing education, training, retirement system and

the implementation thereof, and the agreement between labor and management.

1. Employee welfare:

Gold Circuit Electronics hopes to work with all employees to create profits. We attach importance to sharing profit with colleagues. When the Company achieves its operational goals, employees can share in the results of the Company’s success. Therefore, a certain percentage of profit is allocated as production and year-end bonuses to encourage employees to continue making effort. We implement the employee salary adjustment and production bonus systems and provide allowances for weddings, funerals, and festivals.

Scholarships and scholarships are provided to employees and their children; travel allowances are provided to employees so that they can relax

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after work; subsidies are provided for various events and club activities held in the plant.

The Welfare Committee provides subsidies for weddings, funerals, hospitalization, and childbirth. It also provides cash gifts for birthdays, three major festivals, and Labor Day to express condolences to employees. The Company continues to negotiate with contractors and canteen and for in-plan exhibitions and sales activities to provide more discounts and privileges to employees.

We attach great importance to employee education and training, provide pre-service, on-the-job training, career development planning, and diversified learning channels, organize on-the-job training on labor safety, environmental protection, and quality control education every year, and introduce an e-learning platform to increase the flexibility and efficiency of study. The Company encourages employees to learn actively and provides external training on their skills to enhance their professional ability and core competitiveness.

2. Work environment and personal safety

The Company attaches great importance to the welfare planning for employees, and is committed to creating a work environment that takes care of employees’ physical and mental health, meets personal needs, and is worry-free.

In addition to providing social insurance in accordance with the Labor Standards Act and related laws and regulations, the Company provides employees with group medical insurance and regular health checkups. The Company Includes all the employees who require Level 2 health management in the worker health guidance project to provide a more robust and comprehensive health and safety management system.

To ensure employees’ health and safety, the Company provides a bright and clean work environment and conducts work environment inspections every half year as per laws and regulations. The inspections include temperature/humidity, lighting, noise, and toxic and hazardous substances. The results are all in line with national standards and within the allowable concentration range. The Company will review and make improvements based on the report results and historical records. It also provides employees with necessary education and training and protective equipment. Work safety and health personnel will also visit the plant sites from time to time to conduct inspections. They will inspect various firefighting equipment and measures, and guide employees for various hazardous operations and preventive measures to prevent employees from being exposed to dangerous work environment and workplace. Furthermore, it offers health examination and special health examination for employees

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every year, and provides employees with health knowledge and the information on the improvement to health promotion in the workplace as advised by professional physicians.

In response to the implementation of laws related to maternity protection, the Company has set up several breastfeeding rooms so that employees can have a safe environment for milk pumping and storage in the plants. Meanwhile, pregnant and lactating female laborers are prohibited from engaging in dangerous or harmful work, and they are also not allowed to work night shifts to protect the safety of the mother and fetus. During the maternal health protection period, the factory nurse takes the initiative to care for the mothers by providing breastfeeding, childcare, and health education information to meet personal needs. In addition to providing friendly maternal protection equipment and space, the Company provides on-site medical services to ensure the operation and work environment for employees during and after pregnancy. The Company also arranges for employees, unit heads, physicians, nurses, and industrial safety personnel to jointly conduct maternal protection evaluations to ensure that maternal employees are well taken care of.

In addition, the on-site services of general and occupational physicians are provided six times a month, so that employees have professional consultation channels for their physical healthcare. The Company also conducts on-site improvements and evaluations in response to physicians’ suggestions. The infirmary provides employees with healthcare information from time to time, so that employees can absorb and obtain correct and effective health and safety information.

The implementation of the “one fixed day off and one flexible rest day” system started in Taiwan on December 23, 2016. As early as the year before the previous year, the Company adjusted the shift system and increased the manpower. As a result of the amendment of the labor regulations to the 40-hour workweek, we implement a “four workdays with two-day off” system that is better than the statutory number of holidays, allowing employees to have more time for their families or enjoy their personal lives.

3. Retirement system:

In compliance with the Labor Standards Act and the Labor Pension Act, the Company contributes 2% of the total salary on a monthly basis as the employee pension reserve fund under the old system. For employees subject to the new labor retirement system, the Company contributes 6% of the insured salary on a monthly basis to the individual pension fund account.

4. Important labor-management agreements:

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The Company has always been based on the management philosophy of labor-management integration, co-existence, and mutual prosperity to handle labor relations. Therefore, the Company attaches great importance to the opinions of employees. They can always reflect the situation encountered at the workplace or in their lives through the Company’s formal or informal communication channels. The two-way communication between the Company and the employees helps both understand each other better, build consensus, and create great results together.

(1) Departmental meetings: Focusing on the communication of work problems, the allocation of manpower, the discovery of key issues, and the dissemination government orders and the evaluation of their implement, so that employees can fully understand the production technology, safety and health, and quality management. and achieve consistent decision-making and cohesion at the meetings in and between the departments and outside the factory.
(2) Employee Welfare Committee meetings: Members of the committee are elected from among the Company’s employees who are more knowledgeable, experienced, and capable in communication. Therefore, during the welfare committee meeting, employees and employers can engage in extensive and in-depth topical discussions on welfare measures; the meetings can be used to discuss employees’ work and life issues more deeply and listen to relevant opinions on these issues. Through this mode of negotiation and communication, both parties can strengthen mutual trust and understanding, and provide important references for management and administration.
(3) Labor-management meeting: This is a bridge of communication between labor and management in order to coordinate labor–management relations, promote labor–management cooperation, and improve work efficiency. Labor status reports, production plans, and business overview can be discussed at the meeting, including labor conditions, labor welfare planning, revision of work rules, work environment, production status, etc.
List any losses suffered by the Company in the most recent two fiscal years and up to the annual report publication date due to labor disputes, and disclose an estimate of possible expenses that could be incurred currently and in the future and measures being or to be taken: None.

Detail on the violation of the Occupational Safety and Health Act and the Labor Standards Act by the Company and its subsidiaries in the most

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recent two fiscal years and up to the annual report publication date is listed below, and all fines were paid within the time limits and subsequent improvements have been made:

Disposition dates	Disposition reference numbers	Articles of law violated	Brief description	Fine amount	Measure taken
2022/7/5	Lao-Zhi-Sh ou-Zi No. 1110203771	Article 21 of the Rules for Occupational Safety and Health Facilities, and Article 6, paragraph 1 of the Occupational Safety and Health Act.	Employee fell due to the drain cover with height difference outside the corporate cafeteria.	60,000	The damaged road has been paved to prevent slips and regular road repair and pavement in the plant campus have been carried out to avoid such an incident.
2022/10/13	Fu-Lao-Jian -Zi No.1110289 340	Article 287 of the Rules for Occupational Safety and Health Facilities, and Article 6, paragraph 1 of the Occupational Safety and Health Act.	When filling the 50% sulfuric acid into the neutralizer tank, the labor wore a protective eyewear with limited protection while the sulfuric acid splashed onto the employee on September 27. The employee was hospitalized with the injured left eye.	100,000	The chemical filling process has been automated to eliminate the risk of exposure to chemicals arising from manual operation.
2022/11/14	Fu-Lao-Tiao -Zi No.1110312 226	Article 32, paragraph 2 of the Labor Standards Act	The total number of overtime exceeded the legal limit.	50,000	The early warning system for excessive work hours has been established to remind supervisors to consider the

124

Disposition dates	Disposition reference numbers	Articles of law violated	Brief description	Fine amount	Measure taken
					work hours of personnel when scheduling shifts and avoid any violation of laws.
2022/12/28	Lao-Zhi-Sh ou-Zi No. 1110207407	Article 37, paragraph 2 of the Occupational Safety and Health Act.	An occupational accident that a labor of the Zhongli Plant fell and injured incurred on December 5, 2022, and the Company was notified about the labor’s hospitalization on December 6, 2022 and later, on December 7, reported to the Occupational Safety and Health Administration online, which was beyond the legally required 8-hour notification time limit.	60,000	Training and education about the definition of 8-hour notification time limit have been provided to avoid any delayed filing due to misunderstandin g.
2023/5/24	Fu-Lao-Tiao -Zi No.1120135 283	Article 32, paragraph 2 of the Labor Standards Act	The total number of overtime exceeded the legal limit.	100,000	The head count has been continuously increased for easier work arrangement for supervisors.

VI. Cyber security management:
(I) Information security risk management framework

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Information security management system framework

The Company’s information security management system adopts the “Plan-Do-Check-Act (PDCA)” cycle operation model as described as follows:

(1) Planning and establishment (Plan)

Based on the overall strategy and goals, by establishing an information security management organization, the Company controls potential threats and vulnerabilities, and plans risk assessment and security control mechanisms to establish an information security management system.

(2) Implementation and operation (Do)

Based on the results of the assessment and planning, the Company establishes or modifies the required information security control mechanism.

(3) Supervision and audit (Check)

The Company supervises the implementation of various operations of the information security management system and checks its effectiveness to ensure the implementation of information security management.

(4) Maintenance and improvement (Act)
- The Company implements corrective and preventive measures based on the results of supervision and audit and recommendations, and improves and implements the required control mechanism to continuously maintain the operation of the information security management system.
Information security goals

Based on the information security policy, the objectives of the information security management system are defined, and statistics for each objective are reported every year to confirm the achievement of the objectives as described below:

a) (1) Ensure the protection and storage of the data of the Company and customer to prevent improper intentions or illegal circumstances.
b) (2) Comply with legal requirements, the orders of the competent authority, and the requirements of customer contracts or professional duties.
c) (3) Ensure the accuracy and completeness of the information provided.
d) (4) Take appropriate actions when an information security incident causes damage to the rights and interests of the stakeholders.
e) (5) Ensure the continuity and timeliness of the services provided.
Risk management

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With reference to the international standards ISO31000 and ISO27005, the Company conducts panoramic analysis of the organization and risk assessment of key information assets in order to plan risk response plans. The effectiveness of risk management is verified through the management review conducted by the “Information Security Committee” to check whether the risk protection measures can effectively reduce the relevant risks and achieve the expected goals.

Information Security Committee

==> picture [426 x 212] intentionally omitted <==

(II) Information security policy

This information security policy is formulated and an information security management system is established to ensure the security of information data, systems, equipment and network communication, and to effectively reduce the risks such as theft of information assets, improper use, leakage, tampering, or damage due to human negligence, deliberate actions or natural disasters.

Assure the confidentiality, integrity, availability and legality of all information and assets collected, processed and utilized.
Continue to operate the informatization of core business, maintain the effectiveness of the information security management system, and improve the quality of internal and external information services.

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(III) Specific management plan

	⚫	Trend analysis of important host warning systems and abnormal activities
Cyber-	⚫	Enhanced network firewall and network control to prevent computer viruses
Security		from spreading to other units or other premises
	⚫	Strengthened identity authentication for improved information security
		strength
	⚫	Annual information security risk exposure survey and analysis for constantly
		enhanced attack surface management.
	⚫	Terminal anti-virus measures created for the specific type of computer to
Device		improve detection of malware activities
Security	⚫	Virus scanning upon entry of units to site to prevent against entrance of units
		containing malware to the Company

	⚫	Introduce security software development (SSDC) to reduce
Application		program security vulnerabilities
Security	⚫	Periodic monthly vulnerability scanning and annual outsourced penetration
		testing
	⚫	Continuously reinforced app security control mechanism and integrated
		developmental flows and platforms
	⚫	Enforce the business secrets management system to consolidate protection of
		business secrets and confidential data
Information
Security	⚫	Document classification and data encryption control and effective tracking
Protection	⚫	Control over sending of mails, mail audit mechanism, mail backup, mail
		advanced protection
	⚫	Reinforced remote backup mechanism
	⚫	Enhanced awareness among employees of mail-mediated social engineering
Educational		attacks and defensive detection of phishing mails
Training	⚫	Periodic courses on the awareness and communication of business secrets and
and Communication		information security, at least 2 hours a year.
	⚫	Information security risk alert notice and information security communication
		mail sent from time to time
	⚫	Strengthen internal control system and organize internal audit
		trainingof talents on a regular basis

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(IV) Invest resources in information security management

==> picture [456 x 510] intentionally omitted <==

(V) Losses due to information security incidents: None.

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VII. Important contracts:

Nature of the contract	Party	Starting and ending dates of the contract	Main Content	Restrictive clause
Trading contract	Commend Machinery Co., Ltd.	03.09.2023–12.31.2024	Gantry-type pulse plating line (12 copper)	None.
Trading contract	Commend Machinery Co., Ltd.	11.07.2023–06.30.2024	PTH + Flash plating line	None.
Trading contract	BURKLE PCB MACHINERY LIMITED	10.19.2023–12.31.2025	Press machine	None.

130

SIX. Financial Overview

I. Condensed Balance Sheet and Condensed Comprehensive Income Statement of the Past Five Years

(I) Consolidated Condensed Balance Sheet – International Financial Reporting Standards

Unit: NTD thousand

Year Item	Year Item	Financial data for the last five years	Financial data for the last five years	Financial data for the last five years	Financial data for the last five years
		2019	2020	2021	2022	2023
Current assets		13,774,664	14,726,407	18,162,077	22,726,472	24,912,799
Property, Plant, and Equipment		5,595,078	5,586,368	5,679,186	6,294,437	6,945,126
Intangible assets		20,431	18,500	26,550	42,539	58,186
Other assets (Note 1)		1,518,211	1,318,221	1,112,472	977,150	1,185,132
Total	assets	20,908,384	21,649,496	24,980,285	30,040,598	33,101,243
Current liabilities	Before distribution	10,871,241	9,203,124	10,274,232	11,856,726	10,475,329
	After distribution	－	10,022,856	11,476,506	13,578,162	12,196,765
Non-current liabilities		2,871,173	3,180,736	3,303,939	3,859,854	5,794,789
Total liabilities	Before distribution	13,742,414	12,383,860	13,578,171	15,716,580	16,270,118
	After distribution	－	13,203,592	14,780,445	17,438,016	17,991,554
Equity attributable to owners of the parent company		7,165,970	9,265,636	11,402,114	14,324,018	16,831,125
Capital stock		5,464,879	5,464,879	5,464,879	4,918,391	4,918,391
Additional paid-in capital		1,471,233	1,471,233	1,206,574	1,219,167	2,117,649
Retained earnings	Before distribution	98,468	2,155,492	4,571,187	8,002,438	9,776,642
	After distribution	－	1,335,760	3,368,914	6,281,002	8,055,206
Other equityitems		229,867	272,509	257,951	276,776	111,197
Treasurystocks		(98,477)	(98,477)	(98,477)	(92,754)	(92,754)
Non-controlling interests		－	－	－	－	－
Total equity	Before distribution	7,165,970	9,265,636	11,402,114	14,324,018	16,831,125
	After distribution	－	8,445,904	10,199,840	12,602,582	15,109,689

Source: The consolidated financial information of the aforementioned years has been audited or reviewed by

CPAs.

131

Note 1: Note 1: Other assets, including investment property, for 2019, 2020, 2021, 2022 and 2023 were NT$574,400 thousand, NT$577,000 thousand, NT$577,900 thousand, NT$576,200 thousand, and NT$595,800 thousand, respectively.
Note 2: The 2023 earnings allocation proposal has been proposed by the board of directors but has not yet been approved by the shareholders’ meeting.

132

(II) Consolidated Condensed Statement of Comprehensive

Income-International Financial Reporting Standards

Unit: NTD thousand

(Except for earnings (losses) per share expressed in NTD)

	Unit: NTD thousand (Except for earnings (losses) per share expressed in NTD)	Unit: NTD thousand (Except for earnings (losses) per share expressed in NTD)	Unit: NTD thousand (Except for earnings (losses) per share expressed in NTD)	Unit: NTD thousand (Except for earnings (losses) per share expressed in NTD)	Unit: NTD thousand (Except for earnings (losses) per share expressed in NTD)
Year Item	Financial data for the last five years
	2019	2020	2021	2022	2023
Operating income	18,990,719	23,398,323	26,607,474	32,785,064	30,043,950
Gross profit	2,490,615	5,290,580	6,371,040	8,728,088	7,723,796
Operating income (loss)	669,405	3,073,918	4,122,521	6,036,712	5,136,067
Non-operating income and expenditure	(399,205)	(376,036)	(74,003)	351,621	81,840
Net income before tax	270,200	2,697,882	4,048,518	6,388,333	5,217,907
Net profit from continuing operations for currentyear	129,726	2,066,612	2,926,854	4,567,875	3,528,592
Loss from discontinued operations	－	－	－	－	－
Net profit (loss) for current year	129,726	2,066,612	2,926,854	4,567,875	3,528,592
Other comprehensive income (net of tax)	(16,239)	33,054	20,771	84,475	(198,531)
Total comprehensive income for current year	113,487	2,099,666	2,947,625	4,652,350	3,330,061
Net income attributable to owners of theparent company	129,726	2,066,612	2,926,854	4,567,875	3,528,592
Net income attributable to non-controlling interests	－	－	－	－	－
Total comprehensive income attributable to owners of the parent company	113,487	2,099,666	2,947,625	4,652,350	3,330,061
Total comprehensive income attributable to non-controlling interests	－	－	－	－	－
Earnings per share	0.24	3.82	5.41	8.86	7.25

Source: The consolidated financial information of the aforementioned years has been audited or reviewed by

CPAs.

133

(III) Standalone Condensed Balance Sheet - International Financial Reporting Standards

Unit: NTD thousand

Standards	Standards	Unit: NTD thousand	Unit: NTD thousand	Unit: NTD thousand	Unit: NTD thousand	Unit: NTD thousand
Year Item		Financial data for the last five years
		2019	2020	2021	2022	2023
Current assets		11,448,008	11,770,633	14,264,162	17,187,233	18,902,616
Investments using the equitymethod		739,258	2,627,936	4,873,407	8,124,156	10,173,103
Property, Plant, and Equipment		2,379,241	2,476,950	2,460,514	2,776,751	3,184,108
Intangible assets		11,191	9,238	16,394	34,922	47,736
Other assets (Note 1)		1,215,795	1,058,214	859,238	697,160	897,324
Total	assets	15,793,493	17,942,971	22,473,715	28,820,222	33,204,887
Current liabilities	Before distribution	5,833,376	6,604,017	8,690,030	10,938,080	10,925,718
	After distribution	－	7,423,749	9,892,304	12,659,516	12,647,154
Non-current liabilities		2,794,147	2,073,318	2,381,571	3,558,124	5,448,044
Total liabilities	Before distribution	8,627,523	8,677,335	11,071,601	14,496,204	16,373,762
	After distribution	－	9,497,067	12,273,875	16,217,640	18,095,198
Equity attributable to owners of the parent company		7,165,970	9,265,636	11,402,114	14,324,018	16,831,125
Capital stock		5,464,879	5,464,879	5,464,879	4,918,391	4,918,391
Additional paid-in capital		1,471,233	1,471,233	1,206,574	1,219,167	2,117,649
Retained earnings	Before distribution	98,468	2,155,492	4,571,187	8,002,438	9,776,642
	After distribution	－	1,335,760	3,368,914	6,281,001	8,055,206
Other equity items		229,867	272,509	257,951	276,776	111,197
Treasury stocks		(98,477)	(98,477)	(98,477)	(92,754)	(92,754)
Non-controlling interests		－	－	－	－	－
Total equity	Before distribution	7,165,970	9,265,636	11,402,114	14,324,018	16,831,125
	After distribution	－	8,445,904	10,199,840	12,602,582	15,109,689

Note 1: Other assets, including investment property, for 2019, 2020, 2021, 2022 and 2023 were NT$574,400 thousand, NT$577,000 thousand, NT$577,900 thousand, NT$576,200 thousand, and NT$595,800 thousand, respectively.

134

(IV) Standalone Condensed Statement of Comprehensive Income-International Financial Reporting Standards

Unit: NTD thousand

(Except for earnings (losses) per share expressed in NTD)

	Unit: NTD thousand (Except for earnings(losses) per share expressed in NTD)	Unit: NTD thousand (Except for earnings(losses) per share expressed in NTD)	Unit: NTD thousand (Except for earnings(losses) per share expressed in NTD)	Unit: NTD thousand (Except for earnings(losses) per share expressed in NTD)	Unit: NTD thousand (Except for earnings(losses) per share expressed in NTD)
Year Item	Financial data for the last five years
	2019	2020	2021	2022	2023
Operatingincome	16,317,433	21,865,903	25,550,218	31,558,391	29,428,588
Grossprofit	1,249,062	1,953,385	2,304,031	3,134,076	2,877,301
Operating income (loss)	285,561	734,762	1,153,732	1,698,400	1,511,294
Non-operating income and expenditure	(83,407)	1,624,052	2,246,582	3,526,359	2,814,596
Net income before tax	202,154	2,358,814	3,400,314	5,224,759	4,325,890
Net profit from continuing operations for currentyear	129,726	2,066,612	2,926,854	4,567,875	3,528,592
Loss from discontinued operations	－	－	－	－	－
Net profit (loss) for current year	129,726	2,066,612	2,926,854	4,567,875	3,528,592
Other comprehensive income(net of tax)	(16,239)	33,054	20,771	84,475	(198,531)
Total comprehensive income for current year	113,487	2,099,666	2,947,625	4,652,350	3,330,061
Net income attributable to owners of the parent company	－	－	－	－	－
Net income attributable to non-controlling interests	－	－	－	－	－
Total comprehensive income attributable to owners of the parent company	－	－	－	－	－
Total comprehensive income attributable to non-controlling interests	－	－	－	－	－
Earningsper share	0.24	3.82	5.41	8.86	7.25

135

(V) Name of CPAs and Opinions Thereof in the Last Five Years:

Year	CPA	Audit Opinion
2023	Chao-Ling Chen and Chun-Yi Chang	Unqualified opinion
2022	Chao-Ling Chen and Chun-Yi Chang	Unqualified opinion
2021	Chao-Ling Chen and Jui-Na Chang	Unqualified opinion
2020	Chao-Ling Chen and Jui-Na Chang	Unqualified opinion
2019	Chao-Ling Chen and Jui-Na Chang	Unqualified opinion

136

II. Analysis of financial data for the last five years

(I) Analysis of consolidated financial data – International Financial Reporting Standards

Year (Note 1) Item(Note 2)	Year (Note 1) Item(Note 2)	Financial data for the last five years (Note 1)	Financial data for the last five years (Note 1)	Financial data for the last five years (Note 1)	Financial data for the last five years (Note 1)	Financial data for the last five years (Note 1)
		2019	2020	2021	2022	2023
Financial structure (%)	Debt ratio	65.73	57.2	54.36	52.32	49.15
	Ratio of long-term capital to property, plant and equipment	179.39	222.8	258.95	288.89	325.78
Solvency (%)	Current ratio	126.71	160.02	176.77	191.68	237.82
	Quick ratio	97.51	122.03	125.92	139.67	174.3
	Interest coverage ratio	2.03	17.02	60.61	70.98	44.52
Operating performance	Receivables turnover(times)	2.87	3.36	3.29	3.27	2.78
	Average collection days	128	108	111	112	131
	Inventoryturnover(times)	5.37	6.22	5.12	4.61	3.85
	Payables turnover(times)	3.93	4.4	4.33	4.31	3.82
	Average turnover days	68	59	71	79	95
	Property, plant and equipment turnover (times)	3.23	4.19	4.72	5.48	4.54
	Total assets turnover(times)	0.9	1.1	1.14	1.19	0.95
Profitability	Return on assets(%)	1.62	10.34	12.79	16.87	11.48
	Return on equity (%)	1.82	25.15	28.32	35.51	22.65
	Ratio of pre-tax income to paid-in capital (Note 7)	4.94	49.37	74.08	129.89	106.09
	Profit margin(%)	0.68	8.83	11	13.93	11.74
	Earningsper share(NTD)	0.24	3.82	5.41	8.86	7.25
Cash flow	Cash flow ratio(%)	16.12	32.47	23.26	37.48	50.76
	Cash flow adequacyratio(%)	160.66	168.65	117.41	125.65	135.51
	Cash flow reinvestment ratio(%)	6.82	10.75	5.24	9.6	9.38
Leverage	Operatingleverage	11.47	3.56	3.11	1.97	2.06
	Financial leverage	1.65	1.06	1.02	1.02	1.02
Reasons for changes in various financial ratios in the last two years. (If the increase/decrease does not reach 20%, the analysis is not required) 1. Increase in current ratio and quick ratio: Mainly due to the decrease in short-term borrowings as a result of issuance of convertible bonds. 2. Decrease in interest coverage ratio: Mainly due to the increase in interest expenses. 3. Increase in Average turnover days: Mainly due to the decrease in inventory turnover. 4. Decrease in total asset turnover: Mainly due to the decrease in net sales. 5. Decrease in return on assets and return on equity: Mainly due to the decrease in net income after tax. 6. Increase in cash flow ratio: Mainlydue to issuance of convertible bonds.

If the company prepares the parent company only financial statements, it should also prepare a parent company only financial ratio analysis.

If the financial information prepared using IFRS is less than 5 years, financial information using R.O.C. Financial Accounting Standards shall be prepared separately.

Note 1: The year for which CPAs did not conduct audit or certification must be indicated. Source: The consolidated financial information of the aforementioned years has been audited or reviewed by CPAs.

Note 2: At the end of this table in the annual report, the calculation formulas below shall be listed:

Financial structure

(1) Liabilities to assets ratio = total liabilities / total assets.

137

(2) Ratio of long-term funds to property, plant and equipment = (Total equity + Non-current liabilities) / Net property, plant and equipment.
Solvency
(1) Current ratio = current assets / current liabilities.

Quick ratio = (Current assets-Inventories-Prepayments) / Current liabilities.

Interest coverage ratio = Net income before income tax and interest expense / Interest expense in the current period.

Operating performance
(1) Receivables (including accounts receivable and notes receivable arising from operations) turnover = Net sales / Balance of average receivables for each period (including accounts receivable and notes receivable arising from operations).
(2) Average collection days = 365 / Receivables turnover.
(3) Inventory turnover = Cost of sales / Average inventory.
(4) Payables (including accounts payable and notes payable arising from operations) turnover = Cost of sales / Balance of average payables for each period (including accounts payable and notes payable arising from operations).
(5) Average turnover days = 365 / Inventory turnover rate.
(6) Property, plant and equipment turnover = Net sales / Average net property, plant and equipment.
(7) Total assets turnover = Net sales / Average total assets.
Profitability
(1) Return on assets = [Profit or loss after tax + interest expense x (1 - tax rate)] / Average total assets.
(2) Return on equity = Profit or loss after tax / average total equity.
(3) Profit margin = Profit or loss after tax / Net sales.
(4) Earnings per share = (Profit or loss attributable to owners of the parent company - dividends from preferred stock) / Weighted average number of outstanding shares. (Note 3)
Cash flow
(1) Cash flow ratio = Net cash flow from operating activities / current liabilities.
(2) Net cash flow adequacy ratio = Net cash flow from operating activities over the last five years / (Capital expenditure + Inventory increase + Cash dividend) over the last five years
(3) Cash flow reinvestment ratio = (Net cash flow from operating activities - Cash dividends) / (Gross property, plant and equipment + Long-term investment + Other non-current assets + Working capital). (Note 4)
Leverage
(1) Operating leverage = (Net operating revenue - Variable operating costs and expenses) / Operating income (Note 6). (Note 5)
(2) Financial leverage = operating income / (operating income - interest expense).

Note 3: For the formula for calculating the earnings per share above, special attention shall be paid to the matters below:

The weighted average number of ordinary shares shall base on the number of common shares, instead of the number of shares outstanding at the end of the year.
In the case of capital increase in cash or treasury stock transactions, the weighted average number of shares shall be calculated based on the outstanding period.
In the case of capitalization of earnings or capitalization of capital surplus, when the earnings per share for prior years or on a semi-annual basis are calculated, retrospective adjustments shall be made in proportion to the capital increase ratio, without considering the issue period for capital increase.
Where the preference shares are non-convertible cumulative preference shares, the dividends thereof for the current year (whether paid out or not) shall be deducted from the net income after tax, or added to net loss after tax. Where the preference shares are not cumulative, in the case of net income after tax, the dividends from the preference shares shall be deducted from the net income after tax; in the case of net loss, no adjustment is required.

Note 4: When cash flow analysis is performed, the items below shall be paid special attention to:

The net cash flow from operating activities means the net cash inflow from operating activities on the cash flow statement.
Capital expenditure refers to the cash outflow from capital investment every year.
The increase in inventory is only included when the closing balance is greater than the opening balance. Where the inventory decreases at the end of the year, it will be calculated as zero.
Cash dividends include cash dividends on ordinary shares and preference shares.
Gross property, plant and equipment refers to the total amount of property, plant and equipment before accumulated depreciation is deducted.

138

Note 5: The issuer shall classify various operating costs and operating expenses as fixed and variable according to their nature. In the case of estimates or subjective judgments, attention shall be paid to their reasonableness and consistency.
Note 6: Where the Company’s stock has no par value or the par value per share is not NT$10. The calculation of the paid-in capital above shall be conducted based on the equity attributable to the owner of the parent company on the balance sheet.

139

(II) Analysis of standalone financial data -International Financial Reporting Standards

(II) Analysis of standalone financial data	(II) Analysis of standalone financial data	-International Financial Reporting Standards	-International Financial Reporting Standards	-International Financial Reporting Standards	-International Financial Reporting Standards	-International Financial Reporting Standards
Year (Note 1) Item(Note 2)		Financial data for the last five years (Note 1)
		2019	2020	2021	2022	2023
Financial structure (%)	Debt ratio	54.63	48.36	49.26	50.3	49.31
	Ratio of long-term funds to fixed property (%)	418.63	457.78	560.2	644	699.7
Solvency (%)	Current ratio	196.25	178.23	164.12	157.13	173.01
	Quick ratio	164.43	145.23	125.49	121.24	129.9
	Interest coverage ratio	4.32	44.5	115.89	120.91	47.33
Operating performance	Receivables turnover(times)	2.91	3.49	3.39	3.31	2.85
	Average collection days	126	105	108	111	129
	Inventoryturnover(times)	8.15	10.65	8.9	8.25	6.61
	Payables turnover(times)	3.91	4.44	4.28	3.97	3.67
	Average turnover days	45	35	41	45	56
	Property, plant and equipment turnover(times)	6.64	9.01	10.35	12.05	9.87
	Total assets turnover(times)	1.1	1.3	1.26	1.23	0.95
Profitability	Return on assets(%)	1.20	12.51	14.6	17.94	11.61
	Return on equity (%)	1.82	25.15	28.32	35.51	22.65
	Ratio of pre-tax income to paid-in capital	3.7	43.16	62.22	106.23	87.95
	Profit margin(%)	0.8	9.45	11.46	14.47	11.99
	Earningsper share(NTD)	0.24	3.82	5.41	8.86	7.25
Cash flow	Cash flow ratio(%)	10.43	26.17	3.54	22.6	8.89
	Cash flow adequacyratio(%)	177.94	177.09	85.99	87	60.71
	Cash flow reinvestment ratio(%)	3.77	9.89	-2.06	5.34	-2.66
Leverage	Operatingleverage	6.34	2.51	1.24	1.66	1.92
	Financial leverage	1.27	1.08	1.03	1.03	1.06
Reasons for changes in various financial ratios in the last two years. (If the increase/decrease does not reach 20%, the analysis is not required) 1. Decrease in interest coverage ratio: Mainly due to the increase in interest expenses. 2. Increase in inventory turnover and decrease in average turnover days: Mainly due to higher inventory at the end of the period. 3. Decrease in total asset turnover: Mainly due to the decrease in net sales. 4. Decrease in return on assets and return on equity: Mainly due to the decrease in net income after tax. 5. Decrease in cash flow ratio, cash flow adequacy ratio and cash flow reinvestment ratio: Mainly due to due to the decrease in net income before tax this year compared to last year, resulting in a significant decrease in cash flow thisyear compared to lastyear.

If the company prepares the parent company only financial statements, it should also prepare a parent company only financial ratio analysis.

If the financial information prepared using IFRS is less than 5 years, financial information using R.O.C. Financial Accounting Standards shall be prepared separately.

Note 1: The year for which CPAs did not conduct audit or certification must be indicated. Source: The consolidated financial information of the aforementioned years has been audited or reviewed by CPAs.

Note 2: At the end of this table in the annual report, the calculation formulas below shall be listed:

Financial structure

(1) Liabilities to assets ratio = total liabilities / total assets.

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(2) Ratio of long-term funds to property, plant and equipment = (Total equity + Non-current liabilities) / Net property, plant and equipment.
Solvency
(1) Current ratio = current assets / current liabilities.

Quick ratio = (Current assets-Inventories-Prepayments) / Current liabilities.

Interest coverage ratio = Net income before income tax and interest expense / Interest expense in the current period.

Operating performance
(1) Receivables (including accounts receivable and notes receivable arising from operations) turnover = Net sales / Balance of average receivables for each period (including accounts receivable and notes receivable arising from operations).
(2) Average collection days = 365 / Receivables turnover.
(3) Inventory turnover = Cost of sales / Average inventory.
(4) Payables (including accounts payable and notes payable arising from operations) turnover = Cost of sales / Balance of average payables for each period (including accounts payable and notes payable arising from operations).
(5) Average turnover days = 365 / Inventory turnover rate.
(6) Property, plant and equipment turnover = Net sales / Average net property, plant and equipment.
(7) Total assets turnover = Net sales / Average total assets.
Profitability
(1) Return on assets = [Profit or loss after tax + interest expense x (1 - tax rate)] / Average total assets.
(2) Return on equity = Profit or loss after tax / average total equity.
(3) Profit margin = Profit or loss after tax / Net sales.
(4) Earnings per share = (Profit or loss attributable to owners of the parent company - dividends from preferred stock) / Weighted average number of outstanding shares. (Note 3)
Cash flow
(1) Cash flow ratio = Net cash flow from operating activities / current liabilities.
(2) Net cash flow adequacy ratio = Net cash flow from operating activities over the last five years / (Capital expenditure + Inventory increase + Cash dividend) over the last five years
(3) Cash flow reinvestment ratio = (Net cash flow from operating activities - Cash dividends) / (Gross property, plant and equipment + Long-term investment + Other non-current assets + Working capital). (Note 4)
Leverage
(1) Operating leverage = (Net operating revenue - Variable operating costs and expenses) / Operating income (Note 6). (Note 5)
(2) Financial leverage = operating income / (operating income - interest expense).

Note 3: For the formula for calculating the earnings per share above, special attention shall be paid to the matters below:

The weighted average number of ordinary shares shall base on the number of common shares, instead of the number of shares outstanding at the end of the year.
In the case of capital increase in cash or treasury stock transactions, the weighted average number of shares shall be calculated based on the outstanding period.
In the case of capitalization of earnings or capitalization of capital surplus, when the earnings per share for prior years or on a semi-annual basis are calculated, retrospective adjustments shall be made in proportion to the capital increase ratio, without considering the issue period for capital increase.
Where the preference shares are non-convertible cumulative preference shares, the dividends thereof for the current year (whether paid out or not) shall be deducted from the net income after tax, or added to net loss after tax. Where the preference shares are not cumulative, in the case of net income after tax, the dividends from the preference shares shall be deducted from the net income after tax; in the case of net loss, no adjustment is required.

Note 4: When cash flow analysis is performed, the items below shall be paid special attention to:

The net cash flow from operating activities means the net cash inflow from operating activities on the cash flow statement.
Capital expenditure refers to the cash outflow from capital investment every year.
The increase in inventory is only included when the closing balance is greater than the opening balance. Where the inventory decreases at the end of the year, it will be calculated as zero.
Cash dividends include cash dividends on ordinary shares and preference shares.
Gross property, plant and equipment refers to the total amount of property, plant and equipment before accumulated depreciation is deducted.

141

Note 5: The issuer shall classify various operating costs and operating expenses as fixed and variable according to their nature. In the case of estimates or subjective judgments, attention shall be paid to their reasonableness and consistency.
Note 6: Where the Company’s stock has no par value or the par value per share is not NT$10. The calculation of the paid-in capital above shall be conducted based on the equity attributable to the owner of the parent company on the balance sheet.

142

III. Audit Committee’s Audit Report

GOLD CIRCUIT ELECTRONICS LTD.

Audit Committee’s Audit Report

The board meeting has prepared and submitted the Company’s business report, financial statements and earnings distribution proposal for 2023. The financial statements were audited by CPAs Chao-Ling Chen and Chun-Yi Chang of Deloitte and an audit report was issued accordingly.

The abovementioned business report, financial statements, and earnings distribution proposal have been audited by the Audit Committee and comply with the requirements of the Company Act and other relevant regulations. Therefore, the Report is submitted in accordance with Article 219 of the Company Act.

Please review and approve.

2024 General Shareholders’ Meeting of the Company

GOLD CIRCUIT ELECTRONICS LTD. Jen-Jou Hsieh, Convener of Audit Committee

March 12, 2024

143

IV. Financial Report for the Last Year

Independent Auditors’ Report

To GOLD CIRCUIT ELECTRONICS LTD.:

Audit opinions

We have audited the parent company only balance sheet of GOLD CIRCUIT ELECTRONICS LTD. as of December 31, 2023 and 2022, and the related parent company only statements of income, parent company only statements of changes in shareholders’ equity, parent company only statements of cash flow, and notes to the parent company only financial statements (including the material accounting policies summary) from January 1 to December 31, 2023 and 2022.

In our opinion, the major issues of said financial reports prove to have been duly worked out in accordance with and Regulations Governing the Preparation of Financial Reports by Securities Issuers, presenting fairly the parent company only financial position of GOLD CIRCUIT ELECTRONICS LTD. as of December 31, 2023 and 2022 and the results of parent company only financial performance and cash flow for the periods starting from January 1 to December 31, 2023 and 2022.

The basis for opinions

We conducted our audit in accordance with the Regulations Governing Auditing and Attestation of Financial statements by Certified Public Accountants and auditing standards. Our responsibilities under those standards are further described in the responsibilities of auditors for the audit of the parent company only financial statements. The personnel of the accounting firm that the CPAs belong to who are subject to the independence requirement have acted independently from the business operations of GOLD CIRCUIT ELECTRONICS LTD. and its subsidiaries in accordance with the Code of Ethics and with other responsibilities of the Code of Ethics performed. We believed that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key audit matter

The “key audit matter” means that the independent auditors have used their professional judgment as the basis to audit the most important matters on the 2023 parent company only financial statements of GOLD CIRCUIT ELECTRONICS LTD. These matters were addressed in the content of our audit of the parent company only financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on those matters.

The key audit matters of the 2023 parent company only financial statements of GOLD CIRCUIT ELECTRONICS LTD. are described as follows:

Recognition of revenue

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whether such type of income occurs. Given this, it is classified as a key audit matter. The policy for recognition of revenue is disclosed in Note IV herein.

The audit procedure that we performed on the above-mentioned key matters primarily covers the following:

Understand and test the design and effectiveness of execution of the major internal control for recognition of revenue of the Company.
Samples were selected from the income statement of the triangle trade to verify how original purchase orders from customers were approved and to verify the shipping receipts and payment collection documents from the subsidiary in Mainland China for confirmation over whether the transaction really occurred or not.

Responsibilities of Management and Those in Charge with Governance of the Entity Financial Statements

The responsibility of the management is to have the parent company only financial reports prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Firms International Accounting Standards, Interpretations, and also maintain the necessary internal controls related to the parent company only financial reports to ensure that the parent company only financial reports are free of any material misstatement arising from fraud or errors.

While preparing the parent company only financial statements, the management’s responsibility also includes assessing the continuing operation of GOLD CIRCUIT ELECTRONICS LTD., the disclosure of the relevant matters, and the adoption of the continuing operation accounting base, unless the management intends to liquidate GOLD CIRCUIT ELECTRONICS LTD. or cease business operation, or there is a lack of any option except for liquidation or suspension.

The governance unit (including the Audit Committee) of GOLD CIRCUIT ELECTRONICS LTD. is responsible for supervising the financial reporting process.

Independent Auditor’s Responsibilities for the Audit of the Entity 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 and auditor’s report. Reasonable assurance is a high level of assurance, but is not a guarantee that any audit conducted in accordance with the accounting principles will always detect a material misstatement when it exists. Misstatements can arise from fraud or error. If fraud or errors are considered materials, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the parent company only financial statements.

As part of an audit in accordance with the accounting principles, we exercise professional judgment and maintain professional skepticism throughout the audit. We also perform the following works:

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 risks, and obtain evidence that is sufficient and appropriate to provide a basis of 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

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omissions, misrepresentations or the override of internal control.

Obtain the necessary understanding on the internal control related to the audit in order to design appropriate audit procedures under the circumstances, but the purpose is not to express an opinion on the effectiveness of the internal control of GOLD CIRCUIT ELECTRONICS LTD.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management.
Use the audit evidence obtained as the basis to draw conclusions on the suitability of the continuing operation accounting base adopted by the management and whether or not there are events or circumstances causing significant doubts regarding the continuing operation ability of GOLD CIRCUIT ELECTRONICS LTD. have significant uncertainties. 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 disclosure are inappropriate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of the auditor’s report. However, future events or circumstances may result in the inability of GOLD CIRCUIT ELECTRONICS LTD. to continue operating.
Evaluate the overall presentation, structure, and contents of the parent company only statements, including the disclosures, whether the parent company only statements represent the underlying transactions and events in a matter that achieves fair presentation.
Obtain sufficient and appropriate audit evidence on the financial information of GOLD CIRCUIT ELECTRONICS LTD. in order to express an opinion on the parent company only financial statements. The independent auditor is responsible for guiding, supervising, and implementing the audit of GOLD CIRCUIT ELECTRONICS LTD., and is also responsible for forming an opinion on the audit.

We communicate with those in charge of 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 in charge of 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).

The independent auditor has used the communications with the governing unit as the basis to determine the key audit matters to be performed on the 2023 parent company only financial statements of GOLD CIRCUIT ELECTRONICS LTD. 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 communications.

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Deloitte & Touche CPA Chen Chao-Ling

Financial Supervisory Commission’s written approval No.: Jin-Guan-Zheng-Liu-Zi No.: 0930160267

CPA Chang Chun-Yi

Securities and Futures Commission’s written approval No: Tai-Cai-Zheng-Liu-Zi No. 0920123784

March 12, 2024

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GOLD CIRCUIT ELECTRONICS LTD.

Parent Company Only Balance Sheet

December 31, 2023 and 2022

Unit: NTD thousand

Code 1100 1110 1180 1170 1210 1200 130X 1410 1470 11XX 1550 1600 1755 1760 1780 1840 1900 15XX 1XXX Code 2100 2120 2152 2170 2180 2219 2230 2250 2280 2399 21XX 2530 2540 2570 2580 2640 2670 25XX 2XXX 3110 3200 3310 3320 3350 3300 3400 3500 3XXX	Assets Current assets Cash and cash equivalents (Notes IV and VI) Financial assets at fair value through profit or loss - current (Notes. IV & VII) Accounts receivable – related party (Notes IV, VIII and XXVIII) Accounts receivable - non-related party (Notes IV, V and VIII) Other receivables – related parties (Notes IV, VIII and XXVIII) Other receivables – non-related parties (Note IV and VIII) Inventories (Notes IV and IX) Prepayments Other current assets (Note XV) Total current assets non-current assets Investment under equity method (Notes IV and X) Property, plant and equipment (Notes IV, XI and XXIX) Right-of-use assets (Notes IV and XII) Investment property (Notes IV and XIII) Other intangible assets (Notes IV and XIV) Deferred income tax assets (Notes IV and XXIV) Other non-current assets (Note XV) Total non-current assets Total assets Liabilities and shareholders’equity Current liabilities Short-term loans (Notes IV and XVI) Financial liabilities at fair value through gains or losses – current (Notes IV and VII) Others notes payable Accounts payable – non-related parties (Note XVIII) Accounts payable – related parties (Notes XVIII and XXVIII) Other accounts payable (Note XIX) Income tax liability for the year (Note XXIV) Provision for liabilities-current (Notes IV and XX) Lease liabilities – current (Notes IV and XII) Other current liabilities (Note XIX) Total current liabilities Non-current liabilities Corporate bonds payable (Notes IV and XVII) Long-term loans (Notes IV and XVI) Deferred income tax liabilities (Notes IV and XXIV) Lease liabilities – non-current (Notes IV and XII) Net defined benefit liabilities- non-current (Notes IV and XXI) Other non-current liabilities (Note XIX) Total non-current liabilities Total liabilities Equity (Note 22) Share capital Common stock Additional paid-in capital Retained earnings Legal reserve Special reserve Undistributed earnings Total retained earnings Other equity items Treasury stocks Total equity Total liabilities and equity		December 31, 2023	December 31, 2023	％ 12 - - 31 - 1 13 - - 57 31 9 - 2 - 1 - 43 100 - - - 7 17 7 1 1 - - 33 10 5 1 - - - 16 49 15 6 3 2 25 30 - - 51 100		December 31, 2022	December 31, 2022
			Amount $ 3,948,446 43,349 80,357 10,277,899 60,045 82,005 4,337,635 72,878 2 18,902,616 10,173,103 3,184,108 98,027 595,800 47,736 196,229 7,268 14,302,271 $ 33,204,887 $ - 21,860 16 2,403,812 5,640,727 2,153,627 353,452 191,935 10,438 149,851 10,925,718 3,393,537 1,465,000 425,203 74,125 89,220 959 5,448,044 16,373,762 4,918,391 2,117,649 927,568 475,522 8,373,552 9,776,642 111,197 92,754) 16,831,125 $ 33,204,887				Amount $ 3,126,813 - 75,018 10,115,422 24,210 67,830 3,692,841 83,396 1,703 17,187,233 8,124,156 2,776,751 27,684 576,200 34,922 92,058 1,218 11,632,989 $ 28,820,222 $ 579,108 4,908 116 2,144,602 5,724,721 1,747,285 356,840 216,823 9,124 154,553 10,938,080 - 3,340,000 141,054 3,110 73,101 859 3,558,124 14,496,204 4,918,391 1,219,167 464,215 475,522 7,062,701 8,002,438 276,776 92,754) 14,324,018 $ 28,820,222		％
		(				(			11 - - 35 - - 13 1 - 60 28 10 - 2 - - - 40 100 2 - - 7 20 6 1 1 - 1 38 - 12 - - - - 12 50 17 4 2 2 24 28 1 - 50 100

Notes to the parent company only financial reports constitute a part of these financial reports.

Chairman: Chen-Tse Yang

Manager: Chen-Tse Yang

Accounting Supervisor: Chang-Chin Yang

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GOLD CIRCUIT ELECTRONICS LTD.

Parent Company Only Statement of Comprehensive Income

January 1 to December 31, 2023 and 2022

Code Operating revenue (Note IV and XXVIII) 4100 Sales revenue Operating cost (Notes IX, XXI, XXIII and XXVIII) 5110 Cost of goods sold 5900 Gross profit Operating expense (Notes VIII, XXI, XXIII and XXVIII) 6100 Promotional expenditure 6200 Operating expenditure 6300 R&D expenditure 6450 Expected credit impairment loss (profit) 6000 Total operating expenses 6510 Other gains, expenses and losses - net (Note XXIII) 6900 Net operating profit Non-operating income and expenditure (Notes IV, XXIII and XXVIII) 7100 Interest revenue 7010 Other revenue 7020 Other gain or loss 7050 Financial cost 7070 Amount of profit and/or loss of subsidiaries, affiliates, and joint ventures adopting the equity method 7000 Total non-operating revenue and expense		Unit: 2023	Unit: 2023	NTD thousand, except for EPS (NT$) 2022 ％ Amount ％ 100 $ 31,558,391 100 90 28,424,315 90 10 3,134,076 10 2 635,821 2 2 446,758 1 1 331,482 1 - 39,549 - 5 1,453,610 4 - 17,934 - 5 1,698,400 6 - 44,233 - - 40,110 - - 114,450 - - ( 42,600 ) - 10 3,370,166 11 10 3,526,359 11

(To be continued)

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(Continued)

Code 7900 Net profit before tax from continuing operation 7950 Income tax expenses (Notes IV and XXIV) 8000 Continuing operation net profit for the year Other comprehensive income 8310 Not reclassified to profit and loss: 8311 Defined benefit plan re-measurement amount (Note XXI) 8349 Incomes tax related to titles not subject to reclassification 8360 May be reclassified to profit and loss subsequently: 8361 Exchange differences on translation of foreign financial statements 8300 Other comprehensive income for current period (after tax net value) 8500 Total comprehensive income of the year EPS (Note XXV) From continuing operations 9710 Basic 9810 Diluted		2023		％ 15 3 12 - - 1) 1) 11		2022
								％
			( (					17 2 15 - - - - 15

Notes to the parent company only financial reports constitute a part of these financial reports.

Chairman: Chen-Tse Yang Manager: Chen-Tse Yang Accounting Supervisor: Chang-Chin Yang

150

GOLD CIRCUIT ELECTRONICS LTD.

Parent Company Only Statement of Changes in Shareholders’ Equity

January 1 to December 31, 2023 and 2022

		Retained earnings			Other equity items
				Exchange differences on translation of foreign financial statements ( $ 27,260 ) - - - - 18,825 18,825 - ( 8,435 ) - - - - - ( 165,579) ( 165,579) ($ 174,014)	Unrealized gain/loss on valuation of financial assets at fair value through other comprehensive income ( $ 10,570 ) - - - - - - - ( 10,570 ) - - - - - - - ($ 10,570)
	Legal reserve $ 167,997 296,218 - - - - - - 464,215 463,353 - - - - - - $ 927,568	Special reserve $ 475,522 - - - - - - - 475,522 - - - - - - - $ 475,522
(			( ( ( ( (	( ( ( ( (	( ( (	( ( (

Notes to the parent company only financial reports constitute a part of these financial reports.

Chairman: Chen-Tse Yang

Manager: Chen-Tse Yang Accounting Supervisor: Chang-Chin Yang

151

GOLD CIRCUIT ELECTRONICS LTD.

Parent Company Only Statement of Cash Flow

January 1 to December 31, 2023 and 2022

Unit: NTD thousand

Code Cash flow from operating activities A10000 Net profit before tax for the year A20010 Income charges (credits): A20300 Expected credit (reversal profit) impairment loss A20100 Depreciation expenditure A20200 Amortization expenditure A20900 Financial cost A29900 Provision (reversal) for liabilities A22400 Amount of profit and/or loss of subsidiaries, affiliates, and joint ventures adopting the equity method A21200 Interest revenue A23700 Inventory devaluation and obsolescence loss A22500 Loss on disposal of property, plant and equipment A20400 Net loss (gain) from financial assets at fair value through profit or loss A20400 Net loss from financial liabilities at fair value through profit or loss A24100 Net loss of exchange in foreign currencies A24600 (Gain) loss from fair value adjustment of investment property A29900 Net defined benefit liabilities A30000 Net change in operating assets and liabilities A31150 Accounts receivable A31180 Other receivables A31200 Inventory A31230 Prepayments A31240 Other current assets A32130 Notes payable A32150 Accounts payable A32180 Other payables A32230 Other current liabilities A33000 Cash yielded in business operation	2023 $ 4,325,890 ( 44,485 ) 387,327 23,470 91,448 ( 22,872 ) ( 2,815,285 ) ( 139,128 ) 150,600 12,940 ( 43,349 ) 1,183 115,875 ( 19,600 ) ( 25,071 ) ( 533,702 ) ( 51,966 ) ( 795,394 ) 10,518 1,701 ( 100 ) 468,971 309,378 ( 4,702) 1,403,647	2022
		$ 5,224,759 39,549 334,449 12,705 42,600 46,839 ( 3,370,166 ) ( 44,233 ) 83,116 22,455 9,196 4,908 45,006 1,700 ( 45,517 ) ( 1,623,640 ) 645,508 ( 581,965 ) ( 1,040 ) 10,373 116 1,528,152 302,619 77,521 2,765,010

(To be continued)

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(Continued)

Code
A33200
Interest collected
A33500
Income tax paid

AAAA
Net cash generated by operating
activities

Cash flow from investing activities
B01800
Acquisition of investments under equity
method

B09900
Repatriation of earnings from invested
company under equity method
B02400
Refunds from capital reduction of the
invested company under equity method
B02700
Procurement of property, plant and
equipment

B04500
Procurement of intangible assets

B02800
Proceeds from disposal of property, plant
and equipment
B03800
Decrease (increase) in refundable deposit
BBBB
Net cash used in investing activities
Cash flow from financing activities
C00100
Increase in short-term loans
C00200
Decrease in short-term loans

C01600
Application for long-term loans
C01700
Repayment of long-term loans

C01900
Decrease in long-term notes payable
C01200
Issuance of corporate bonds
C04020
Repayment of lease liability principal

C03100
Refund of guarantee deposits received
C05600
Interest paid

C04700
Capital reduction in cash
C04500
Cash dividends paid

CCCC
Net cash generated by (used in)
from financing activities

DDDD Impact of change in exchange rate upon cash &
cash equivalents

EEEE
Net increase in cash and cash equivalents
E00100 Cash and cash equivalents, beginning of year

E00200 Cash and cash equivalents, end of year

Notes to the parent company only financial reports constitute a part of these financial reports.

Chairman: Chen-Tse Yang Manager: Chen-Tse Yang Accounting Supervisor: Chang-Chin Yang

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GOLD CIRCUIT ELECTRONICS LTD.

Notes to Parent Company Only Financial Statements

January 1 to December 31, 2023 and 2022

(Expressed in Thousand New Taiwan Dollars, unless specified otherwise)

I. History

GOLD CIRCUIT ELECTRONICS LTD. (GCE) was established in Jhongli Dist., Taoyuan City in September 1981, primarily engaged in manufacturing, processing and trading printed circuit boards.

The Company’s stocks have been traded on TWSE since March 1998.

The parent company only financial reports were expressed in New Taiwan Dollars, the functional currency adopted by the Company.

II. Dates and procedures for approving financial statements

The parent company only financial statements were approved by the Board of Directors on March 12, 2024.

III. Applicability of newly promulgated and amended standard rules and interpretations

(I) The first-time adoption of the IFRS, IAS, IFRIC, and SIC approved and effective upon promulgation by the Financial Supervisory Commission (“FSC”) (hereinafter referred to as the “IFRSs” collectively).

The application of the amended IFRSs that are approved and released to take effect by the FSC would not cause significant changes to the accounting policies of the Company.

(II) IFRSs approved by the FSC and applicable in 2024

the Company. IFRSs approved by the FSC and applicable in 2024
New promulgation/Amendment/Amended Rules and Interpretation Amendments to IFRS 16 “Lease Liability in a Sale and Leaseback” Amendments to IAS 1 “Classification of Liabilities as Current or Non-current” Amendments to IAS 1 “Non-current Liabilities with Covenants” Amendments to IAS 7 and IFRS 7 “Supplier Financing Arrangements”	The effective date promulgated by IASB (Note1)
	Monday, January 1, 2024 (Note 2) Monday, January 1, 2024 Monday, January 1, 2024 Monday, January 1, 2024 (Note 3)

Note 1: Unless otherwise expressly remarked, the aforementioned new/Amendment/Amended Rules or Interpretation come into effect in the fiscal year starting from the respective specified effective dates.

Note 2: The seller as a lessee shall be subject to IFRS 16 amendments retroactively in a sale and leaseback transaction agreed after the initial application of the IFRS 16.
Note 3: Partial exemption from disclosure requirements is applied upon first application of these amendments.

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

The amendments clarify that for a sale and leaseback transaction, if the transfer of an asset meets the requirements of IFRS 15 “Revenue from Contracts with Customers” and it is classified as a sale of assets, the liabilities of the seller as a lessee arising from the leaseback shall be dealt with in accordance with the lease lability requirements of IFRS 16. However, if variable lease payments that are not dependent on the index or rate are involved, the seller as a lessee shall measure the liability in a manner in which the gain or loss related to the retained right-of-use is not recognized. Subsequently, the difference between the current lease payments included in the calculation of the lease liability and the actual payments is recognized in profit or loss.

2.

Amendments to IAS 1 “Classification of Liabilities as Current or Non-current” (amended in 2020) and amendments to “Non-current Liabilities with Covenants” (amended in 2022)

The 2020 amendment clarifies that in order to determine whether a liability shall be classified as non-current, it is necessary to evaluate whether the Company, at the end of the reporting period, has the right to defer settlement of the liability for at least 12 months after the reporting period. If the Company has such right at the end of the reporting period to defer settlement of the liability for at least 12 months after the reporting period, the liability should be classified as noncurrent, irrelevant with whether the Company is expected to exercise the right or not.

The 2020 amendment also specifies that clarifies that if the Company may retain the right to defer settlement of a liability only upon compliance with specific terms, it must comply with such specific terms at the end of the reporting period, even if the lender will not test its compliance until a later date. The 2022 amendments further clarify that only the contractual terms to be followed before the end of the reporting period affect the classification of a liability. Although the contractual terms that must be complied with within 12 months after the reporting period do not affect the classification of liabilities, relevant information must be disclosed to enable users of financial reports to understand risk that the Company may not be able to comply with the contractual terms and will be required to repay the liabilities within 12 months after the reporting period.

The 2020 amendment requires that for the purpose of classification of liabilities, said settlement refers to the discharge from liability through the transfer to the trading counterparty of cash, other economic resources, or the Company’s equity instruments. Notwithstanding, where, according to the terms and conditions of liabilities, the liabilities might be paid off at the discretion of the trading counterpart through the transfer of the Company’s equity instruments and said discretion is stated into equity separately under IAS 32 “Financial Instruments: Presentation,” the classification of liabilities would remain unaffected by said terms and conditions.

155

Amendments to IAS 7 and IFRS 7 “Supplier Financing Arrangements” Supplier financing arrangements are characterized by a commitment by

one or more financing providers to pay an company for the amount payable to its supplier, and the company agrees to make a payment on the same day of payment to its supplier (or any date after such payment) the accordance with the terms and conditions of the arrangements. According to the amendments, the Company shall provide disclosures that enable users of financial reports to assess the impact of supplier financing arrangements on the Company’s liabilities, cash flows, and liquidity risk exposure.

Except for the impact referred to above, the Company assesses that other amendments to standards or explanations do not have significant impact on the financial status and performance.

(III) IFRSs already published by the IASB but not yet recognized or issued into effect by the FSC.

The effective date New promulgation/Amendment/Amended Rules and promulgated by IASB Interpretation (Note 1) IFRS 10 and IAS 28 amendment “Assets sales or To be determined contribution between the investor and the affiliated company or joint venture.” IFRS 17 “Insurance Contracts” Sunday, January 1, 2023 Amendments to IFRS 17 Sunday, January 1, 2023 Amendments to IFRS 17 “Initial Application of IFRS Sunday, January 1, 2023 17 and IFRS 9 – Comparative Information” Amendments to IAS 21 “Lack of Exchangeability” Wednesday, January 1, 2025 (Note 2)

Note 1: Unless otherwise expressly remarked, the aforementioned new/Amendment/Amended Rules or Interpretation come into effect in the fiscal year starting from the respective specified effective dates.
Note 2: The amendments are applicable to the annual reporting period that begins after January 1, 2025. The Company will, when applying the amendments for the first time, recognize the effects as retained earnings of the initial applicable date. When the Company uses a non-functional currency as the presentation currency, it will affect the exchange difference of foreign operations under equity on the date of initial application.
Amendments to IFRS 10 and IAS 28”Sale or Contribution of Assets between an Investor and its Associate or Joint Venture”
The amendment provides that if the Company sells or contributes assets to
affiliated companies (or joint ventures), or the Company loses the control over a subsidiary but retains significant influence on the subsidiaries (or joint control), and if the aforementioned assets or subsidiary in compliance with the definition of a business under IFRS 3 “Business Combinations” the Company is to recognize the profit and loss of the transactions fully.

156

In addition, if the Company sells or contributes assets to affiliated companies (or joint ventures), or the Consolidated Company loses the control over a subsidiary but retains significant influence on the subsidiaries (or joint control), and if the aforementioned assets or subsidiary not in compliance with the definition of IFRS 3 “Business,” the Company is to recognize the profit and loss of the transactions only within the equity scope of the affiliated companies (or joint ventures) irrelevant to the investors; in other words, the profit and loss attributable to the Company should be offset.

2. Amendments to IAS 21 “Lack of Exchangeability”

The amendments clearly stipulate that if an enterprise is able to exchange a currency for another through an exchange transaction with enforceable rights and obligations established through a market or exchange mechanism within the time range of normal management delays, the currency is exchangeable. When the currency is not exchangeable on the measurement date, the Company shall estimate the spot exchange rate to reflect the exchange rate that would be used by market participants for orderly transactions on the measurement date in consideration of the prevailing economic conditions. Under such circumstances, the Company shall disclose information that will enable users of financial reports to assess how the lack of exchangeability of a currency has affected or is expected to affect its operating results, financial position and cash flows.

In addition to the impact referred to above, the Company still continued to assess the impact of the other standards and interpretation on the financial position and financial performance up to the date the parent company only financial reports approved and published; also, the relevant influences would be disclosed upon the completion of assessment.

VI. Summary of significant accounting policies

(I) Declaration in compliance

The present standalone Financial Report has been duly worked out in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

(II) Basis of preparation

Except for the financial instruments measured at fair value, investment properties, and the net defined benefit liabilities recognized at fair value after the project assets are deducted from the current value of defined benefit obligations, this Parent Company Only Financial Statement has been duly prepared on the grounds of historical costs.

The evaluation of fair value could be classified into Degree 1 to Degree 3 by the observable intensity and importance of related input value:

Degree 1 input value: refers to the quotation of the same asset or liability in an active market as of the evaluation (before adjustment)
Degree 2 input value: refers to the direct (the price) or indirect (inference of price) observable input value of asset or liability further to the quotation of Level 1.

157

Degree 3 input value: the unobservable input value of asset or liability.

The Company applied the equity method to its invested subsidiaries, affiliated companies or joint ventures when preparing the parent company only financial report. In order to make the current income, other combined gains or losses and equity in the parent company only financial report identical with the current income, other combined gains or losses and equity attributed to the owner of the Company in the Company’s consolidated financial reports, the certain accounting treatment differences between standalone basis and consolidated basis were handled by adjusting the “share of gains or losses of subsidiaries, affiliates & joint ventures accounted for using equity method,” and related equities.

(III) Standards in differentiating current and non-current assets and liabilities Current assets include:
Assets held primarily for the purposes of transactions;
Assets anticipated to be realized within 12 months after the balance sheet date; and
Cash and cash equivalents (excluding those restricted for exchanging or liquidating liabilities over 12 months after the balance sheet date).

non-current liabilities include:

Liabilities held primarily for the purposes of transactions;
The liabilities to be liquidated upon due within 12 months after the balance sheet date (those with long-term refinancing or payment term rearrangement completed from the balance sheet date to the financial reports approved and published date are also classified as current liabilities), and
Liabilities that cannot be with the liquidation date deferred unconditionally for at least 12 months after the balance sheet date; Where the liabilities might be paid off at the discretion of the other party through the tools of the issuance equity, the classification would remain unaffected.

Those not as aforementioned current assets or current liabilities are classified into non- current assets or non-current liabilities.

(VI) Foreign currency

When the Company prepared for the financial reports, the transactions conducted in currencies other than the Company's functional currencies (foreign currencies) were converted into the records of functional currencies based on the exchange rates quoted on the date of transactions.

The items in foreign currencies were converted at the exchange rates closed on each and every balance sheet date. The difference in foreign exchanges incurred by the items of settlement currency items or conversion currency items was recognized as the profit and/or loss for the term of occurrence.

158

recognized into other comprehensive profit and/or loss, the difference of the foreign exchange so incurred was entered as other comprehensive profit and/or loss.

The non-current items measured at historical costs were converted based on the exchange rate quoted on the date of transaction and were not converted anew.

Upon preparation of the parent company only financial reports, the assets and liabilities of the Company’s foreign operations (including the subsidiaries in the countries of business operation or those using currencies different from the Company’s) were converted to New Taiwan Dollars based on the exchange rate quoted on every balance sheet date. The gain, fee and loss items were converted based on the exchange rates averaged in the current term. The difference of conversion so incurred was entered as other comprehensive income.

If the Company disposes of all equities of its foreign operations or disposes of some of the equities of the subsidiaries of its foreign operations and loses control or the retained equities following such disposal are financial assets handled according to the accounting policy for financial instruments, all accumulated differences of conversion that are relevant to the said foreign operations shall be recategorized as gains or losses.

(V)

If partial disposal of the subsidiaries of foreign operations does not lead to loss of control, accumulated differences of conversion will be calculated as part of the equity transactions proportionally yet they are not recognized as gains or losses. Under other circumstances where overseas operating institutions are partially disposed of, accumulated differences of conversion, on the other hand, are recategorized to gains or losses in proportion to the disposal. Inventory

Inventories include raw materials, supplies, finished goods and work in process. The inventory was measured at the lower of cost and net realizable value. In comparison between the cost and realizable value, the individual items shall be taken as the grounds except inventory of the same categories. The term “net realizable value” as set forth herein denotes the balance of the selling price estimated under normal conditions deducted with the cost which is estimated to be invested till completion of manufacture and completion of sales. The cost of inventory was calculated in weighted average method.

(VI) Invested subsidiaries

The Company processed the investment in subsidiaries using the equity method. The subsidiaries refer to the entities controlled by the Company (including structured entities).

Under the equity method, investment was recognized at the initial costs, which would be duly increased or decreased along with the profit and/or loss of the subsidiaries, and other shares of comprehensive income of the Company after the amounts on books were obtained later on. Additionally, the change in other equity of subsidiaries attributed to the Company was recognized pro rata to the shareholding percentages.

159

When the change in the ownership equity on a subsidiary of the Company does not result in a loss of control, it should be treated as an equity transaction. The difference between the book value of the investment and fair value of paid or collected consideration was directly recognized as equity.

In the event that the Company’s shares of loss in subsidiaries equal to or exceed its equity in the subsidiaries (including the book amount of investment in the subsidiaries in equity method and other long-term equity of the Company in the investment composition of the subsidiaries), the Company continued recognition of the further losses.

The portion obtained whose cost is in excess of the share of recognizable net fair values of assets and liabilities in subsidiaries that the Company is entitled to on the day of acquisition will be listed as goodwill. Such goodwill is included as part of the book value of the specific investment and may not be amortized. When the share of recognizable net fair values of assets and liabilities in subsidiaries that the Company is entitled to on the day of acquisition exceeds the acquisition cost, on the other hand, the portion will be listed as income for the specific term.

When evaluating the impairment loss, the Company considered the units that yielded cash thoroughly based on the financial report and compared the collectable amount and book value thereof. Where the collectable amount of the assets increases subsequently, the amount is then reversed against balances of accumulated impairment losses. However, loss reversal should not be more than the carrying amount (net of depreciation or amortization) had the impairment loss not been recognized. Such loss in impairment should not be recovered in the subsequent period.

The Company, on the date on which it forfeited the control over subsidiaries, measured its remaining investment in the subsidiaries at fair value. The difference between the fair value of the remaining investment and the book amount of the investment on the date on which it forfeited the control as the current income. Meanwhile, the amount relevant to the subsidiaries recognized in other comprehensive income were managed on the accounting grounds same as the grounds which it should comply with if the Company directly disposed of the relevant assets or liabilities.

The unrealized gains (losses) from downstream transactions between the Company and subsidiaries were written off in the parent company only financial report. For the profit or loss incurred in upstream and side-stream transactions between the Company and subsidiaries, the Company only recognized those within the scope irrelevant to the subsidiaries into the parent company only financial report. (VII) Property, plant and equipment

The property, plant and equipment were recognized at costs. Subsequently thereafter, they were measured at the amount of the costs deducted with depreciation and the loss in the accumulated impairment.

The property, plant and equipment under construction were recognized at the amount of the costs after deducting the loss in the accumulated impairment. The

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costs included fees incurred for professional services and costs of loan which were consistent with the conditions of capitalization. The samples produced for testing whether the assets can operate normally before reaching the expected state of use are measured based on the lower of the cost or net realizable value. The sale price and cost are recognized in profit or loss. For those assets, depreciation started being amortized when those assets were completed to the extent of being ready for use and duly classified into the appropriate categories of property, plant and equipment.

Except own land, for which no depreciation would be provided, the other property, plant and equipment were depreciated and for each and every major part individually, on a straight-line basis within the useful years. The Company, at least at the end of each fiscal year, has the estimated useful years, residual value, and depreciation method reviewed, and also delayed the effects of changes in applying accounting estimates.

When the property, plant, and equipment were written-off, the difference between the net proceeds from disposal and the book value of the asset is recognized in the profit and loss.

(VIII) Investment property

The investment property denotes such property held in an attempt to earn rent or capital increment or for the both purposes. The investment property also includes the land held for which the future purpose of use has not been resolved.

The investment property was measured at the initial costs (including transaction costs). Subsequently thereafter, it will be measured at the fair value. Changes of the fair value are recognized in the profit and loss when occurring.

When investment property is written off, the difference between the net proceeds from disposal and the book value of the asset is recognized in the profit and loss.

(IX) Intangible assets

1. Individually acquired

The intangible assets with limited useful life individually acquired were measured at costs. Subsequently, they were measured at cost deducted with the amount of accumulated amortization and the loss of the accumulated impairment. Intangible assets within the durability period are amortized on a straight-line basis The Company reviews at least on the end date of each year the estimated durability period, residual value, and depreciation method and postpones impacts where changes in accounting estimates apply. Intangible assets with uncertain useful years are recognized with the cost less accumulated impairment loss.

Derecognition

When intangible assets are written off, the difference between the net proceeds from disposal and the book value of the asset is recognized in the profit and loss.

(X) Impairment of properties, plants, and equipment, right-of-use assets, investment properties, and intangible assets

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The Company evaluates on the date shown on each balance sheet whether there are any signs showing that real estate, plants, and equipment, right-of-use assets, and intangible assets might have been impaired. Where any sign of impairment was found existent, the Company estimated the recoverable amount of such assets. In the event that the recoverable amount of individual assets could not be estimated, the Company estimated the recoverable amount of the units that yielded cash belonging to the assets. The common asset is amortized to each cash-generating unit in accordance with a consistent and reasonable sharing basis.

The intangible asset with indefinite useful years and not yet available for use should be tested for impairment at least annually or should be tested when there is an indication of impairment.

The recoverable amount denotes fair value deducted with the selling costs and the useful value, whichever is the higher. In the event that the individual asset or the recoverable amount of the units that yielded cash was found below the book value, such asset or the book value of the units that yielded cash was adjusted downward to the recoverable amount, with the impairment profit and loss recognized in profit and loss.

(XI) Financial instruments

The financial assets and financial liabilities were recognized onto the parent company only balance sheet when the Company became a party to the contract of the financial instruments.

Upon initial recognition of financial assets and financial liabilities, if the financial assets or financial liabilities were measured for fair values not through profit and/or loss, the Company measured based on the fair value plus the transaction costs, which could be directly attributed to the acquisition or issuance of the financial assets or financial liabilities. The transaction costs which could be directly attributed to the acquisition or issuance of such financial assets or financial liabilities, which were measured at the fair value, were imaginably recognized as the profit and/or loss. 1. Financial assets

The transaction customs of the financial assets were recognized or derecognized on the transaction day accounting basis.

(1) Type of measurement

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

A. The financial assets at fair value through profit or loss.

The financial assets at fair value through profit or loss refer to those measured at fair value through profit or loss compulsorily. The financial assets measured at fair value through profit or loss compulsorily include the investment in equity instruments not designated to be measured at fair value through other comprehensive income, and the investment in bond instruments not eligible to be

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categorized those at amortized cost or at fair value through other comprehensive income.

The financial assets at fair value through gains or losses were measured at fair value, and the gains or losses so incurred were recognized as other profit and loss. Please refer to Note XXVII for the determination of fair value.

B. Financial assets measured at amortized cost

Shall the financial assets invested by the Company meet the following two conditions on the same time, they are classified as financial assets carried at amortized cost:

a. Being held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and
b. The contractual terms of the financial asset give rise, on specified dates, to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Upon the initial recognition, the financial assets measured at amortized cost (including cash and cash equivalents, accounts receivable measured at amortized cost, other accounts receivable, and refundable deposit) were measured at the amortized cost after the total book value decided using the effective interest method less any impairment loss. Any foreign currency exchange income was recognized as gains or losses.

Except in the following two circumstances, the interest revenue was calculated at the effective interest rate multiplying by the total book value of the financial assets:

a. For the purchased or originated credit-impaired financial assets, the interest revenue was calculated at the effective interest rate multiplying by the amortized cost of the financial assets upon credit adjustment.
b. For those other than purchased or originated credit-impaired financial assets, which, however, became the purchased or originated credit-impaired financial assets subsequently, the interest revenue was calculated at the effective interest rate multiplying by their amortized cost as of the next reporting period after the credit impairment.

The credit-impaired financial assets mean that issuers or debtors already suffered hard-up financial standing or default, or an event where a debtor was about to run into bankruptcy or proceed with financial reorganization, or the hard-up financial standing leading to loss of active market of the assets.

Cash equivalents include time deposits in high liquidity, which could be converted into cash of the specified amounts at any time within three (3) months from acquisition, with little risk in the change

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in values, intended to be used to satisfy the commitment in the short-term cash.

C. Investment in equity instruments at fair value through other comprehensive income

However, the Company may choose at the time of original recognition to have the equity instrument investment not held for trading and not recognized by the acquirer in the business merger transaction or not with consideration measured at the fair value through other comprehensive income.

Investment in equity instruments at fair value through other comprehensive income are measured at fair value, and the subsequent movements of the fair value are measured in other comprehensive income, and accumulated in other equity. When disposing of investments, the accumulated gains/losses are transferred to the retained earnings directly without reclassified as gains or losses.

The dividends from the equity instruments at fair value through other comprehensive income are recognized in profit/loss when the right of receiving of the Company is confirmed, unless such dividends obviously represent the recovery of part of the investment.

(2) Impairment of financial assets and contact assets

At each date of balance sheet, the Company evaluates the impairment loss on financial assets (including accounts receivable) and contract assets based on the expected credit loss.

The allowance losses on accounts receivable were all recognized based on the lifetime expected credit loss. For other financial assets, the credit risk is evaluated if there is any significant increase after the initial recognition. If not, the allowance loss is recognized based on the expected credit losses of 12 months; if there any significant increases, the allowance loss is recognized based on the expected credit losses of life time.

Expected credit losses as the weighted average of credit losses with the weightings being the respective risks of a default occurring. 12-month expected credit losses are expected credit losses that result from those default events on the financial instruments that are possible within 12 months after the reporting date. Lifetime expected credit losses are the expected credit losses that result from all possible default events over the life of the financial instruments.

The book value of all impairment losses on financial assets were reduced via the allowance account.

(3) Derecognition of financial assets

The Company only derecognizes financial assets when the rights coming from the contract over cash flows of such assets are expired or financial assets are transferred and nearly all risks and rewards associated

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with the ownership of such assets have been transferred to another enterprise.

Where a financial asset measured at amortized cost was derecognized end masse, the difference between the book value and collected consideration was recognized into profit or loss. When fully derecognizing the investment in equity instrument at fair value through other comprehensive income, the accumulated profit/loss is directly transferred to retained earnings, not to be reclassified as profit or loss.

2. Equity instruments

The liabilities and equity instruments issued by the Company were categorized as financial liabilities or equity based on the substance of the contract agreement and the definition of financial liabilities and equity instruments.

The equity instruments issued by the Company were recognized based on the acquisition price less direct issuing cost.

The Company’s own equity instruments reacquired were derecognized and deducted under the equity title. The book value is calculated according to the weighted average based on the types of shares and is calculated separately in accordance with the reasons for the recovery. Acquisition, sale, issuance or cancellation of the Company's own equity instruments would not be recognized as income.

3. Financial liabilities

(1) Subsequent measurement

All financial liabilities are measured at amortized cost based on the effective interest, unless in the following circumstances: Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss refer to the financial liabilities held for trading.

The financial liabilities held for trading were measured at fair value, the interest so incurred recognized into the financial cost, and the other profit or loss so incurred from re-measurement recognized into other profit or loss.

Please refer to Note XXVII for the determination of fair value.

(2) Derecognition of financial liabilities

When de-recognizing financial liabilities, the difference between the book value and the consideration paid (including any transferred non-cash assets or assumed liabilities) is recognized into profit or loss.

4.

Convertible corporate bonds

For the compound financial instruments (convertible corporate bonds) issued by the Company, its components are classified as financial liabilities or equity based on the definitions of real and financial liabilities and equity instruments under the terms and conditions of the contracts.

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When recognized initially, the fair value of the debt components is estimated based on the market interest rate of similar nonconvertible instruments at that time and measured at amortized cost calculated under the effective interest method prior to the conversion or maturity date. The debt components classified into embedded non-equity derivatives is measured at fair value.

The conversion option classified as equality is equal to the remaining amount of the entire fair value of the compound instruments less the fair value of the debt components determined individually. It is recognized as equity after deduction of the income tax effect and no remeasurement is conducted subsequently. When the conversion option is executed, related debt components and the amount related to the equity are transferred to share capital and capital reserve – issuance premium. If the conversion option of the convertible corporate bond is not executed on the maturity date, the amount recognized in the equity is transferred to capital reserve – issuance premium.

The transaction cost related to issuance of convertible corporate bonds is amortized to the components of the debt (recognized in the book value of liabilities) and equity (recognized in equity) of the instrument concerned based on the amortization proportion of the total amount.

Derivative financial instruments

The Company entered into forward foreign exchange contracts as their derivative financial instruments to manage their exposure to the foreign exchange rate risk.

Derivative financial instruments were initially recognized at fair value at the date the derivative financial instrument contracts were entered into and were subsequently remeasured to their fair value on the balance sheet date. The resulting profit or loss is stated into profit or loss immediately. Notwithstanding, when the derivative financial instruments which were designated and considered as effective hedging instruments should be recognized into profit or loss should be decided subject to the nature of hedging relationship. The derivatives with positive value were classified as financial assets. Those with negative value were classified as financial liabilities.

If the derivatives are embedded into the master contracts for assets falling in the scope under IFRS 9 “Financial Instruments”, the financial assets shall be classified based on the entire contracts. Embedded derivatives other than those embedded into the host contracts for assets falling in the scope under IFRS 9 (e.g. those embedded into the master contracts for financial liabilities) were treated as separate derivatives when they met the definition of a derivative, their risks and characteristics were not closely related to those of the host contracts, and the contracts were not measured at fair value through profit or loss.

(XII) Provision for liabilities

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The provision for liabilities was determined with the obligation risk and uncertainty taken into account, which is the best estimate of the obligation payable on the balance sheet date.

(XIII) Recognition of revenue

Upon identification of the performance obligation in the contract with customers, the Company amortized the transaction price to the performance obligations in the contract and recognized income upon fulfilling performance obligation of the contract.

If the Company signs multiple contracts with the same customer (or the customer’s related party) almost at the same time, the Company would treat them as one single contract, as the commitment about commodity or labor service under the contracts should be identified as single performance obligation.

For any contract providing the time interval between transfer of commodities or labor services and collection of consideration no more than one year, no adjustment would be made on the transaction price with respect to the financing component thereof.

Sales revenue

The sales revenue was generated from the sale of the electronic products, such as printed circuit boards. Upon departure of products or their arrival to the destination designated by customers, the customers have already owned the right to set the price and use the same and taken the responsibility for resale and borne the obsolescence risk; therefore, the Company recognized the income and accounts receivable at that moment.

As the ownership of processed products has not yet been transferred at the time of processing on order, no revenue would be recognized at that moment. (XIV) Lease

The Company evaluates if a contract is, or includes a lease on the date when the contract is established.

The Company was the Lessor.

In the event that all risks and remuneration of the ownership of the assets based on the leasehold terms and conditions were transferred to the lessees in full, such assets were classified as financing leases. All other categories of leases were classified as operating leases.

Under the operating leases, the rent less the lease incentives was recognized into profit or loss based on the straight-line method in the duration of the leases. The initial direct cost arising from negotiating and arranging operating leases, was increased to the book value of the underlying assets, and recognized as expenditure on the straight-line basis over the lease period. 2. The Company was the Lessee.

The lease payments applicable to the recognized waived low-valued underlying asset lease and the short-term lease are recognized as expenditure on the straight-line basis over the lease period. For all other leases, the

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right-of-use assets and lease liabilities are recognized from the starting date of leases.

The right-of-use assets were originally measured at the costs (including the original measured amount of lease liability); subsequently, they were measured at the costs deducting the accumulated depreciation and the accumulated impairment loss, and the re-measurement of the lease liability was adjusted. The right-of-use assets were individually expressed in the parent company only balance sheets.

The right-of-use assets on the straight-line basis were depreciated from the starting date of lease until expiration of the useful years or the lease period, whichever earlier. If the ownership of underlying assets would be acquired upon expiration of the lease period, or the costs of right-of-use assets reflected the exercise of right of first refusal, the assets should be depreciated from the starting date of lease until expiration of the useful years.

The lease liabilities were measured based on the present value of the lease payment (including fixed payment and variable lease payment depending on any index or fees). If the implied interest rate of a lease should be easy to be confirmed, the rate should be applied to discount the lease payment. Otherwise, the incremental the lessee’s loan rate of interest should apply instead.

Subsequently, the lease liabilities were measured at amortized cost using the effective interest method. The interest expenditure was also amortized within the lease period. If there was any change in the lease period or any index or fees determining the lease payments would result in changes of future lease payment, the Company re-measured the lease liabilities, and relatively adjusted the right-of-use assets; provided the book value of the right-of-use asset has decreased to zero, the remaining re-measured amount was recognized in the profit or loss. The lease liabilities are individually expressed in the parent company only balance sheets.

(XV) Costs of loan

The costs of loan for the assets that meet the essential requirement and directly attributable to the acquisition, construction, or production of assets is deem as part of the asset cost until all of the necessary activities completed for the assets to reach its intended use or sale state.

The income of a temporary investment with a specific loan that has not yet met the essential requirement of capital expenditure is deducted from the cost of loan that meets the essential requirements of capitalization.

In addition to the transaction stated in the preceding paragraph, costs of all other loans are recognized into profit and loss upon occurring.

(XVI) Government subsidies

The government subsidies would be recognized only if that it is strongly believed on reasonable grounds that the Company would comply with the conditions imposed on the government subsidies and such subsidies may be received affirmatively.

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Government subsidies concerning gains are recognized systematically as other income during the period where related costs they are meant to offset are recognized by the Company as expenditure. The government subsidies for acquisition of non-current assets by the Company through procurement/construction or in any other manners should be debited into the book value of the non-current assets, and recognized into profit and/or profit within the useful years of the assets by reducing the depreciation or amortization expenses for the non-current assets.

If government subsidies are meant to compensate for incurred expenditure or losses or for providing the Company with immediate financial support and are not associated with costs in the future, they are recognized as profits and losses during the collectible period.

(XVII) Employee benefits
Short-term employee benefits

Short-term employee benefits related liabilities are the non-discounted amount prepaid in exchange for employee services.

Post-retirement benefits

For pension under the defined contribution retirement plan, the amounts of pension to be contributed during the period in which employees provided services were recognized as expenditure.

The defined benefit costs under the defined benefit retirement plan (including the service costs, net interest, and re-measurement amount) were based on the actuary of projected unit credit method. The service costs (including current service costs), and net interest on the net defined benefit liabilities (assets) were recognized as employee benefit expenditure in the period they occur. The re-measurement amount (including actuarial profit and loss and projected ROA net of applicable interest) was recognized as other comprehensive income and stated as retained earnings at the time of realization, but would not be reclassified as income in subsequent periods.

The net defined benefit liabilities (assets) refer to the amount short (surplus) in the contribution under the defined benefit retirement plan. The net defined benefit assets should not exceed the refund of the contributed fund or decrease the present value of contribution of fund in the future.

Resignation benefits

The Company had resignation benefit liabilities recognized when the resignation benefit contract cannot be revoked or when recognizing the related reorganization cost (whichever is sooner).

(XVIII) Income tax

The income tax expenditure denotes the total of the income tax payable in the current term and the deferred income tax.

Income tax for the year

The income tax imposed on undistributed earnings calculated as required by the Income Tax Act of the Republic of China is recognized for the year according to the resolution reached in the shareholders’ meeting.

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Adjustment of the prior years’ income tax is added to current income tax expenditure in the year the adjustment is made.

Deferred income tax

Deferred income tax is computed in accordance with the temporary differences between book value of the assets and liabilities and the tax base for calculating the taxable income.

Deferred tax liabilities are generally recognized in accordance with all taxable temporary differences. Deferred tax assets are recognized when there are likely to have taxable income available for deductible temporary difference.

All taxable temporary differences relevant to the investment in subsidiaries were recognized as deferred income tax liabilities, unless the Company could control the time point of recovery of the control over the temporary difference, or said temporary difference would be very likely not recoverable in the foreseeable future. The deductible temporary differences associated with such investment were recognized as deferred income tax assets, to the extent that sufficient taxable income was available to realization of temporary differences and such differences were expected to be reversed in the foreseeable future.

The book value of the deferred income tax assets was reviewed anew on each and every balance sheet date. Aiming at such event where there would be very likely not adequate taxable income to recover the assets either in whole or in part, the Consolidated Company adjusted downward the book value. Those which were not initially recognized as deferred income tax assets were also reviewed anew on each and every balance sheet date. The Consolidated Company, in turn, would adjust upward the book value in the future while there would be likely to yield taxable income to recover assets either in whole or in part.

The deferred income tax assets and liabilities were measured at the tax rates of that term. The said tax rate would be on the grounds of the tax rates and taxation laws, which had been enacted or had been substantially enacted as of the balance sheet date. The deferred income tax liabilities and assets were measured to reflect the Company for the taxation consequences of taxation for the book amounts of the assets and liabilities anticipated to be recovered or reimbursed as of the balance sheet date. Where the investment property measured at fair value is a non-depreciation asset, or the economic model as held would not be likely to consume almost all of the economic benefit from the assets over time, the Company would assume that the book value of the assets was recovered through sale.

The exceptions to the rules for recognition and disclosure of deferred income tax assets and liabilities of the Pillar Two income tax have been applied to the Company; therefore, the Company neither recognizes the deferred income tax assets and liabilities of the Pillar Two income tax nor discloses relevant information.

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3. Current and deferred income tax

The current and deferred income tax was recognized into profit and/or loss. The current and deferred income tax relevant to the items, which were recognized in other comprehensive income or directly counted into the items of equity, was recognized into other comprehensive income or directly counted into equity respectively.

Where the current income tax or deferred income tax was generated from acquisition of any subsidiary, the income tax effect should be included into the invested subsidiary's accounting treatment.

V. Critical accounting judgments, estimates and key sources of assumption uncertainty

Where the Company adopts accounting policies and the relevant information is found hardly available from other sources, the management must come to relevant judgments, estimates, and assumptions based on historical experiences and other relevant factors. The actual consequences might differ from the estimates.

Major sources of estimates and hypotheses of uncertainty Estimated impairment of financial assets

The estimated impairment of accounts receivable was based on the Company’s assumptions about the probability and loss rate of default. The Company took into consideration the historical experience, existing market conditions and forward-looking estimates to make the assumptions and select the inputs to the impairment calculation. For details of the key assumptions and inputs used, please refer to Note XXVII. If the actual cash flow in the future is less than what the Company expects, a material impairment loss may occur as a result.

VI. Cash and cash equivalents

impairment loss may occur as a result. Cash and cash equivalents
Cash on hand and working capital Bank’s notes and current deposit Cash equivalents (investment due within three (3) months in the date of initial maturity). Bank time deposit	December 31, 2023 $ 880 3,936,748 10,818 $ 3,948,446	December 31, 2022
			$ 785 3,111,482 14,546 $ 3,126,813

VII. Financial instruments at fair value through profit or loss

Financial assets-current Held for transactions Derivatives (not under hedge accounting) －Forward foreign exchange contracts (1) －FX swaps contracts (2) Subtotal	December 31, 2023 $ 33,281 10,068 $ 43,349	December 31, 2022	December 31, 2022
			$ - - $ -

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Financial liabilities – Current Held for transactions Derivatives (not under hedge accounting) － Forward foreign exchange contracts $ - $ 704 (1) － FX swaps contracts - 4,204 (2) - Conversion option (3. - 21,860 Note 18) $ 21,860 $ 4,908

(I) The outstanding forward foreign exchange contracts not under hedge accounting on the balance sheet date are stated as follows:

December 31, 2023 Sold forward foreign exchange contracts December 31, 2022 Sold forward foreign exchange contracts	Currency type Sell USD/Buy NTD Sell USD/Buy NTD	Maturity date 01.02.2024–03.05.202 4 January 03, 2023–March 09, 2023	Contract amount (NTD Thousand)
			USD40,000／NTD1,261,481 USD40,000／NTD1,227,696

(II) The outstanding FX swaps contracts not under hedge accounting on the balance sheet date are stated as follows:

December 31, 2023 －FX swaps contracts December 31, 2022 －FX swaps contracts	Currency type Sell USD/Buy NTD Sell USD/Buy NTD	Maturity date January 31, 2024 January 31, 2023	Contract amount (NTD Thousand)
			USD44,000／NTD1,361,088 USD44,000／NTD1,347,036

The Company entered into forward foreign exchanges and FX swaps primarily in order to hedge against the risk arising from foreign currency assets and liabilities due to fluctuations in foreign exchange rate.

(III) Financial liabilities with embedded derivative conversion options are split off by issuing convertible bonds.

VIII. Notes receivable, accounts receivable and other receivables

Accounts receivable Measured at amortized cost	December 31, 2023 $10,395,434	December 31, 2022
		$10,272,103

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Less: Allowance losses Generated from operations Other receivables Business tax refund receivable Accounts receivable from sale of scraps Others	December 31, 2023 ( 37,178) $10,358,256 $ 53,829 26,141 62,080 $ 142,050	December 31, 2022	December 31, 2022
	(	(	81,663) $10,190,440 $ 43,861 22,058 26,121 $ 92,040

The Company’s average credit period for sale of commodities was 180 days. The notes receivable and accounts receivable were collected without interest. Considering that the Company’s trading counterparts were primarily domestic/foreign renowned companies/entities with fair goodwill, no material credit risk was expected to arise therefor. Upon determination of the recoverability of notes receivable and accounts receivable, the Company took into account all changes in the quality of credit of the accounts receivable during the period starting from the initial granting of the loan until the balance sheet date. The historical experiences showed that most of the notes and accounts receivable have been recovered successfully.

In order to mitigate the credit risk, on the balance sheet date, the Company would recheck on a case-by-case basis the recoverable amount of notes and accounts receivable to assure that, for the notes and accounts receivable which were not recoverable, appropriate impairment loss has been duly amortized. Accordingly, the Company’s management held that the Company’s credit risks had been significantly reduced.

The Company recognized the allowance losses on notes and accounts receivable based on the lifetime expected credit loss. The lifetime expected credit losses were calculated using the reserve matrix, by considering the customers’ past default records and current financial position, industrial economic situations, as well as the recoverable amount. As the Company’s credit loss history showed that there was no significant difference among the loss patterns of different customer bases, the reserve matrix didn’t further divide the customer bases, but only established the expected credit losses based on the number of days for which the notes and accounts receivable became overdue.

Where any evidence showed that the trading counterparts had severe financial difficulties, and it was impossible for the Company to reasonably expect the recoverable amount, e.g. the counterparts were under liquidation, the Company would write off the related notes and accounts receivables. However, the pursuit of recovery would be continued, and the amount recovered from such pursuit would be recognized as gains or losses.

The allowance loss on notes and accounts receivable measured by the Company based on the reserve matrix is stated as following: December 31, 2023

Accounts receivable

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Expected Credit Loss (ECL) Rate Total book value Allowance losses (lifetime expected credit loss) Amortized cost		Not overdue		Overdue for 1~60 days 21.98% $ 65,197 14,330) $ 50,867		Overdue for 61~90 days		Overdue for 91~120 days		Overdue for more than 120 days		Total
	(	0.04% $ 10,302,662 4,619) $ 10,298,043	(		(	59.2% $ 22,055 13,057) $ 8,998	(	76.91% $ 1,369 1,053) $ 316	(	99.23% $ 4,151 4,119) $ 32	(	$ 10,395,434 37,178) $ 10,358,256

December 31, 2022

Accounts receivable

Expected Credit Loss (ECL) Rate Total book value Allowance losses (lifetime expected credit loss) Amortized cost		Not overdue		Overdue for 1~60 days 19.05% $ 137,263 26,155) $ 111,108		Overdue for 61~90 days		Overdue for 91~120 days		Overdue for more than 120 days		Total
	(	0.06% $ 10,070,068 6,068) $ 10,064,000	(		(	59.96% $ 31,257 18,741) $ 12,516	(	73.82% $ 4,529 3,343) $ 1,186	(	94.38% $ 28,986 27,356) $ 1,630	(	$ 10,272,103 81,663) $ 10,190,440

The information about changes in allowance losses on accounts receivables is stated as following:

stated as following:
Balance – beginning of year Add: Impairment loss provided in the current period Less: Reversal of impairment loss in the current period Balance – end of period		2023 $ 81,663 - 44,485) $ 37,178		2022
	(			$ 42,114 39,549 - $ 81,663

IX.

The net amount of the total book value of accounts receivable overdue for more than 60 days from the beginning of year dropped on December 31, 2023 by NT$37,197 thousand in net and it resulted in a net decrease in allowance losses by NT$31,211 thousand as well. The net amount of the total book value of accounts receivable overdue for more than 60 days increased on December 31, 2022 by NT$54,043 thousand in net and it resulted in a net increase in allowance losses by NT$39,709 thousand. Inventory

Inventory
Finished goods Work in process Raw materials & supplies Inventories in transit	December 31, 2023 $ 2,078,160 1,709,096 508,216 42,163 $ 4,337,635	December 31, 2022
			$ 2,062,013 1,186,836 267,610 176,382 $ 3,692,841

The nature of the sales cost is defined as follows:

Cost of inventory sold Loss on inventory devaluation	2023 $ 26,629,154 150,600	2022
		$ 28,573,207 83,116

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(gain from price recovery) Income from sale of scraps and waste materials

( 228,467 ) ( 232,008 ) $ 26,551,287 $ 28,424,315

X. Investment under equity method

Invested subsidiaries December 31, 2023 December 31, 2022 Non-public/non-OTC companies King Hsiang Investment Co. $ 58,658 $ 41,910 Goldex Holding Limited 9,462,754 8,082,246 Thailand Gold Circuit - 651,691 Electronics Ltd. $10,173,103 $ 8,124,156

King Hsiang Investment Co. Goldex Holding Limited Thailand Gold Circuit Electronics Ltd.	Percentage of equity	and voting right
	December 31, 2023 99.97% 100.000% 100.000%	December 31, 2022
		99.997% 100.000% 100.000%

The Company invested in Thailand Gold Circuit Electronics Ltd. on May 25, 2023. As of December 31, 2023, the investment amounted to US$20,750 thousand.

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XI. Property, plant and equipment

Self-use

Self-use
Cost Balance as of January 1, 2023 Addition Disposition Reclassification Balance as of December 31, 2023 Cumulative depreciation and impairment Balance as of January 1, 2023 Disposition Depreciation expenditure Balance as of December 31, 2023 Net amount as of December 31, 2023 Cost Balance as of January 1, 2022 Addition Disposition Reclassification Balance as of December 31, 2022 Cumulative depreciation and impairment Balance as of January 1, 2022 Disposition Depreciation expenditure Reclassification Balance as of December 31, 2022 Net amount as of December 31, 2022		Own land $ 701,186 - - - $ 701,186 $ - - - $ - $ 701,186 $ 701,186 - - - $ 701,186 $ - - - - $ - $ 701,186	Building $ 2,320,734 - ( 111 ) 19,065 $ 2,339,688 $ 1,869,979 ( 104 ) 30,471 $ 1,900,346 $ 439,342 $ 2,302,107 - - 18,627 $ 2,320,734 $ 1,840,370 - 29,609 - $ 1,869,979 $ 450,755	Machinery & equipment $ 4,695,720 - ( 263,354 ) 515,756 $ 4,948,122 $ 3,392,135 ( 242,412 ) 234,875 $ 3,384,598 $ 1,563,524 $ 4,526,545 - ( 315,270 ) 484,445 $ 4,695,720 $ 3,475,829 ( 288,100 ) 205,162 ( 756) $ 3,392,135 $ 1,303,585	Transportation equipment $ 35,246 - ( 1,533 ) 3,810 $ 37,523 $ 20,914 ( 1,354 ) 3,741 $ 23,301 $ 14,222 $ 34,957 - - 289 $ 35,246 $ 16,766 - 4,148 - $ 20,914 $ 14,332	Office equipment $ 65,014 - ( 2,383 ) 8,927 $ 71,558 $ 45,846 ( 2,276 ) 5,449 $ 49,019 $ 22,539 $ 65,029 - ( 2,379 ) 2,364 $ 65,014 $ 43,380 ( 2,307 ) 5,038 ( 265) $ 45,846 $ 19,168	Other equipment $ 820,875 - ( 86,993 ) 191,704 $ 925,586 $ 594,834 ( 86,177 ) 97,949 $ 606,606 $ 318,980 $ 717,839 - ( 68,080 ) 171,116 $ 820,875 $ 584,677 ( 67,425 ) 76,826 756 $ 594,834 $ 226,041	Unfinished construction and equipment pending acceptance $ 61,684 837,665 - ( 775,034 ) $ 124,315 $ - - - $ - $ 124,315 $ 73,873 697,564 - ( 709,753) $ 61,684 $ - - - - $ - $ 61,684	Total
									$ 8,700,459 837,665 ( 354,374 ) ( 35,772) $ 9,147,978 $ 5,923,708 ( 332,323 ) 372,485 $ 5,963,870 $ 3,184,108 $ 8,421,536 697,564 ( 385,729 ) ( 32,912) $ 8,700,459 $ 5,961,022 ( 357,832 ) 320,783 ( 265) $ 5,923,708 $ 2,776,751

There was no sign of impairment in 2023. Therefore, the Company didn’t recognize or reverse impairment loss.

Depreciation expenditure is appropriated in accordance with the straight line method and the useful years illustrated below:

r reverse impairment loss. iation expenditure is appropriated in the useful years illustrated below:	accordance with the st
Buildings
Main building of plant	11~55 years
Electromechanical & power equipment	5~11 years
Engineering system	3~25 years
Others	5 years – 15 years
Machinery & equipment	2~14 years
Transportation equipment	3~9 years
Office equipment	3~11 years
Other equipment	1 year ~13 years

Please refer to Note XXIV for the property, plant and equipment for own use offered as collateral of loans.

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XII. Lease Agreement

(I) Right-of-use assets

(I)	Right-of-use assets
(II)	Item Cost Balance as of January 1, 2023 Addition Balance as of December 31, 2023 Cumulative depreciation and impairment Balance as of January 1, 2023 Depreciation expenditure Balance as of December 31, 2023 Net amount as of December 31, 2023 Cost Balance as of January 1, 2022 Addition Balance as of December 31, 2022 Cumulative depreciation and impairment Balance as of January 1, 2022 Depreciation expenditure Balance as of December 31, 2022 Net amount as of December 31, 2022 Lease liabilities Book value of lease liabilities Current Noncurrent	Machinery & equipment $ 143,875 85,185 $ 229,060 $ 116,191 14,842 $ 131,033 $ 98,027 $ 142,117 1,758 $ 143,875 $ 102,525 13,666 $ 116,191 $ 27,684 December 31, 2023 $ 10,438 $ 74,125		Total
			$ 143,875 85,185 $ 229,060 $ 116,191 14,842 $ 131,033 $ 98,027 $ 142,117 1,758 $ 143,875 $ 102,525 13,666 $ 116,191 $ 27,684 December 31, 2022
				$ 9,124 $ 3,110

The range of discount rates for the lease liabilities is stated as following:

Buildings Machinery & equipment	December 31, 2023 1.68% 1.38%	December 31, 2022
		- 1.38%～2.68%

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(III) Major lessee activities and terms and conditions

The Company rented certain energy-conservation equipment and water quality monitoring systems. The lease periods were 10 years and 3 years, respectively. Upon expiration of the lease period, the lease objects will be transferred to the Company unconditionally. Among the other things, the energy-conservation equipment lease contract provided that the lease payment should vary depending on the specific percentage of the energy-conservation amount on a monthly basis.

(IV) Other information about the lease

Other information about the lease
Short-term lease expenditure Low-value asset lease expenditure Total amount of cash (outflow) from lease		2023 $ 269 $ 6,178 $ 19,303)		2022
	(		(	$ 246 $ 6,340 $ 21,524)

XIII. Investment property

Investment property
Balance – beginning of year Profit (loss) from changes in fair value Balance – end of period	December 31, 2023 $ 576,200 19,600 $ 595,800	December 31, 2022
		(	$ 577,900 1,700) $ 576,200

The investment property was measured at fair value on a recurring basis. The evaluation basis for the fair value thereof is stated as following:

External appraisal service	December 31, 2023 $ 595,800	December 31, 2022	December 31, 2022
			$ 576,200

The fair values of any investment property amounting to more than NT$300 million on December 31, 2023 and 2022 were appraised by Appraiser Chiu Hsiang-Ling from CCSI Real Estate Joint Appraisers Firm, who held the real estate appraiser qualification in the ROC, on the same dates respectively.

Except undeveloped land, the fair value of investment property was evaluated under the income approach. The important hypotheses thereof are stated as following. When the projected future cash inflow increased or discount rate declined, the fair value would increase therefor.

would increase therefor.
Projected future cash inflow Projected future cash outflow Projected future cash inflow Discount rate	December 31, 2023 $ 858,200 262,400 $ 595,800 2.470%	December 31, 2022
			$ 843,500 267,300 $ 576,200 2.345%

The rent prevailing in the area where the investment property was located was about NT$0.520 thousand per ping, while that for any comparable object on the market was about NT$0.569 thousand–NT$0.588 thousand per ping.

The projected future cash inflow from investment property included rent revenue and deposit interest revenue less loss from idle assets. The rent income was evaluated

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based on the rent prevailing locally or that for any comparable object on the market, with any overestimated or underestimated comparable objects excluded, and also based on the growth rate of the future rent. The income analysis period was estimated to be five years. The deposit interest income was estimated based on one-year time deposit interest rate. The loss from idle assets was estimated based on 1.5-month rent income plus deposit interest income. The projected future cash outflow from investment property included the expenditures, such as land value tax, house tax, insurance premium, management expense, maintenance expense, replacement appropriation fee, depreciation expense, disposal expense and estimated land value increment tax. Such expenditures were estimated based on the current expenditure level and by taking into consideration the adjustment on the current land value announced in the future, and tax rate prescribed by house tax regulations.

The discount rate was decided based on the two-year time deposit interest rate published by Chunghwa Post Co., Ltd. plus 0.875%.

XIV. Other intangible assets

Other intangible assets
Computer software	December 31, 2023 $ 47,736	December 31, 2022
			$ 34,922

Amortization expense was appropriated on a straight-line basis within 1~5 useful years.

Summarization of amortization expenses by functions:

Operating costs Operating expenditure R&D expense		2023 $ 18,241 1,072 4,157 $ 23,470		2022
				$ 11,757 571 377 $ 12,705

XV.	Other assets Current Payment on behalf of others Borrowed from employees Noncurrent Refundable deposit	December 31, 2023 $ - 2 $ 2 $ 7,268	December 31, 2022	December 31, 2022
				$ 1,089 614 $ 1,703 $ 1,218

XVI. Borrowings (I) Short-term loans

Short-term loans
Secured loans(Note XXIX) Bank loans Unsecured loans	December 31, 2023 $ -	December 31, 2022
		$ 89,108

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Line of credit loans	December 31, 2023 - $ -	December 31, 2022	December 31, 2022
			490,000 $ 579,108

Revolving bank loan interest rate was 1.110%–3.848% on December 31, 2022.

(III) Long-term loans

Long-term loans
Secured loans(Note XXIX) Mega International Commercial Bank (1) KGI Bank (2) Subtotal Unsecured loans Mega International Commercial Bank (3) CTBC Bank (4) Jih Sun International Bank (5) E.SUN Bank (6) Syndicated banks including Taipei Fubon Bank (7) Syndicated banks including E. Sun Bank (8) Subtotal Long-term loans	December 31, 2023 $ - - - 25,000 - - - $ 1,440,000 - 1,465,000 $ 1,465,000	December 31, 2022
			$ 430,000 360,000 790,000 - 200,000 300,000 100,000 $ 700,000 1,250,000 2,550,000 $ 3,340,000

Land and buildings were offered as collateral for the secured loans. NT$430,000 thousand of the total loans, NT$900,000 thousand, has been drawn down against a disbursement letter on a revolving basis. The loans are effective from July 8, 2022 to July 8 2025. The loans were already repaid in full earlier in December 2023. As of December 31, 2022, the effective annual interest rate was 1.8%.
Land and buildings were offered as collateral for the secured loans. NT$360,000 thousand of the total loans, NT$500,000 thousand, has been drawn down. The loans are effective from April 30, 2017 to April 30, 2024. The loaning period may be extended to January 26, 2025 before the due date. At the expiration of the 18th, 24th, and 30th months from the extension date, a credit line of NTD 100,000 thousand will be canceled, respectively; all other lines of credit will be canceled at the end of the 36th month. The loans may be drawn down on a revolving basis within three years starting from January 26, 2022, with the interest thereon payable on a monthly basis. The loans are repayable in a lump sum on the due date. They were already repaid in full earlier in December 2023. As of December 31, 2022, the effective annual interest rate was 1.849–1.862%. The quarterly consolidated financial ratios on the loans during the effective term were subject to the following restrictions: The total of cash and cash equivalents and EBITDA (net income, income tax

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expense, financial costs (interest expenses), depreciation expenses and amortization expenses in the Long-term loans, current portion should stay more than 120% (inclusive).

For credit loans, NT$250,000 thousand of the total loans, NT$1,000,000 thousand, has been drawn down. The loans are effective from November 24, 2023 to November 24, 2030. The interest thereon are payable on a monthly basis. The first installment was counted upon expiration of the 24th month after the date of the first drawdown, and each installment consists of three months. The loans are repayable at the average over nine installments. As of December 31, 2023, the effective annual interest rate was 1.78%.
For credit loans, NT$200,000 thousand of the total loans, NT$225,000 thousand, has been drawn down. The loans were effective from November 23, 2021 to November 23, 2023. The loaning period has been extended to July 15, 2024. From the date of borrowing, the interest should be accrued, subject to the balance of loan, at the interest rate agreed on the loan on a monthly basis. The principal should be repaid in a lump sum when due. It was paid off earlier in December 2023. As of December 31, 2022, the effective annual interest rate was 1.69%
The credit loans, totaling NT$300,000 thousand, have been drawn down in full. The loans are effective from July 20, 2022 to June 14, 2024. From the date of borrowing, the interest should be accrued, subject to the balance of loan, at the interest rate agreed on the loan on a monthly basis. The principal should be repaid in a lump sum when due. It was paid off earlier in December 2023. As of December 31, 2022, the effective annual interest rate was 1.561%
NT$100,000 thousand of the total credit loans, NT$300,000 thousand, has been drawn down against a disbursement letter on a revolving basis. The loans are effective from October 14, 2022 to October 14, 2025. The loans were already repaid in full earlier in December 2023. As of December 31, 2022, the effective annual interest rate was 1.7%.
The syndicated loans, totaling NT$1,440,000 thousand, have been drawn down in full. The loans are effective from December 20, 2022 to December 20, 2025. The loans were drawn down on a revolving basis within 3 years with the interest thereon payable on a monthly basis. As of December 31, 2023 and 2022, the effective annual interest rate was 2.1247% and 2.0040%, respectively. The annual consolidated financial ratios on the loans during the effective term were subject to the following restrictions: The current ratio should stay more than 100%. The financial liabilities (less cash and cash equivalents) defined under the loan agreement in the net value of tangible assets should stay less than 110%. The interest coverage ratio (Earnings before interest, taxes and amortization of depreciation) should stay more than 2.5 times. The net value of tangible assets should stay more than NT$6,200,000 thousand.
The syndicated loans, totaling NT$1,250,000 thousand, have been drawn down in full on a revolving basis within 3 years. The loans are effective from October

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14, 2022 to February 5, 2024. The principal should be repaid in a lump sum on the due date. It was paid off earlier in December 2023. As of December 31, 2022, the effective annual interest rate was 1.817%. The restrictions imposed on the financial ratios thereof were the same as those applied to the loans from syndicated banks including Taipei Fubon Bank (7).

XVII. Corporate bonds payable

Domestic unsecured convertible corporate bonds – Gold Circuit Electronics 2	December 31, 2023 $ 3,393,537	December 31, 2022	December 31, 2022
			$ -

(I) Domestic unsecured convertible bonds

On December 5, 2023, the Company issued 40 thousand units of second domestic unsecured convertible corporate bonds in Taiwan with a coupon rate of 0% for a period of 5 years. The principal amount was NTD 4,000,000 thousand.

Other terms and conditions of issuance:

Conversion period: March 6, 2024 to December 5, 2028.
Conversion price: The price is NTD 223.1 per share at the time of issuance. In case the number of the Company’s issued common stocks increases after issuance of the convertible corporate bonds (such as cash capital increase, capital increase from earnings, capital increase from capital reserve, issuance of new shares through a merger or acquisition of shares of another company, stock split, and capital increase for participation in issuance of GDRs), the conversion price shall be adjusted based on the formula specified in the issuance terms. (No conversion was executed as of December 31, 2023.)
(II) Call and put options of bonds:
Call option upon maturity: The principal will be repaid at face value upon maturity of the bonds.
Early execution of call option: During the period from the day next to the end date on which the convertible corporate bond has been issued for three months to the 40th day prior to the expiration of the issue date, if the closing price of the Company’s common shares exceeds the current conversion price by more than 30% (inclusive) for thirty consecutive business days, the Company may redeem part or all of the bonds at face value. During the period from the day next to the end date on which the convertible corporate bond has been issued for three months to the 40th day prior to the expiration of the issue date, if the balance of the Company’s outstanding convertible corporate bonds is less than 10% of

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the initial total issue price, the Company may redeem the bonds at face value at any time.

(III) The convertible corporate bonds include liabilities and equities, and the latter are stated in equity and presented as capital reserve – stock option. The initially recognized effective interest rate with respect to the liabilities is 3.63%.
The components of liabilities and equities of convertible corporate bonds
are as follows:

are as follows:
Issue price (less a trading cost of NTD 5,080 thousand) Component of equity (less a trading cost of NTD 1,048 thousand) Option derivatives Component of liabilities on the issuance date (less a trading cost of NTD 4,032 thousand) Interest calculated at the effective interest rate Component of liabilities	December 31,2023
	$ 4,281,160 ( 880,452 ) ( 15,769) 3,384,939 8,598 $ 3,393,537

Changes in option derivatives in 2023 are as follows: Date of issue Loss from changes in fair value Balance – end of period		2023
		$ 15,769 6,091 $ 21,860

XVIII.	Accounts payable Accounts payable Generated from operations	December 31, 2023 $ 8,044,539	December 31, 2022	December 31, 2022
				$ 7,869,323

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XIX. Other liabilities

XIX.	Other liabilities
XX.	Current Other payables Salary and bonus payable Repairs and maintenance payable Processing fees payable Equipment accounts payable Consumables payable Commission payable Pension fund payable Interest payable Damages payable Others Other liabilities Noncurrent Other liabilities Guarantee deposit received Provision for liabilities	December 31, 2023 $ 910,256 201,932 197,011 312,099 25,732 127,682 8,483 2,409 157,736 210,287 $ 2,153,627 $ 149,851 $ 959	December 31, 2022
				$ 825,500 185,914 47,228 213,413 21,695 150,561 10,363 3,210 159,041 130,360 $ 1,747,285 $ 154,553 $ 859

Provision for liabilities
Current Short-term liability reserve for sales return and allowance	December 31, 2023 $ 191,935	December 31, 2022
			$ 216,823

The sales returns and allowances were provided based on the amount estimated according to historical experience, the management’s judgment, and other critical factors. The provision should be debited into the operating revenue in the year in which the related goods were sold.

XXI. Post-retirement benefit plans

(I) Defined contribution plan

The Company applied the retirement system under the “Labor Pension Act,” which was identified as the defined contribution plan managed by the government. Under the plan, the Company contributed 6% of each employee’s salary to the personal account maintained at the Bureau of Labor Insurance on a monthly basis. (II) Defined benefit plan

The pension system implemented by the Company based on the “Labor Standards Act” is a defined benefit plan managed by the government. The pension benefits a participant receives were determined based on an employee’s number of years of service and average compensation for the six-month period prior to retirement. The Company has an amount equivalent to 2% of the total monthly salary

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of employees appropriated and deposited in the specific account with Bank of Taiwan in the name of Labor Pension Reserve Committee. Before the end of the fiscal year, if the pension account balance is insufficient to pay for the employees expecting to retire in the following year, the spread amount should be deposited in a lump sum before the end of March in the following year. The special account has been commissioned to the Bureau of Labor Fund of the Ministry of Labor Affairs for management. The Company exercises no influence on the right of the Bureau in its investment management strategy.

The amount of defined benefit plan recognized in the parent company only balance sheet is shown below:

balance sheet is shown below:
Present value of the defined benefit obligations Fair value of the planned assets Shortfall in contribution Limit of assets Net defined benefit liabilities	December 31, 2023 $ 371,901 (282,681) 89,220 - $ 89,220	December 31, 2022
	(	(	$ 340,553 267,452) 73,101 - $ 73,101

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The net defined benefit liabilities show the following changes:

Balance as of January 1, 2023 Service cost Service cost in current period Interest expenses (revenue) Recognized into profit and/or loss Re-measurement amount ROE on planned assets (except the amount of net interest) Actuarial losses －changes in financial assumptions －adjustment through experience Recognized into other comprehensive income Contributed by employer Benefits paid Balance as of December 31, 2023 Balance as of January 1, 2022 Service cost Service cost in current period Interest expenses (revenue) Recognized into profit and/or loss Re-measurement amount ROE on planned assets (except the amount of net interest) Actuarial losses －changes in financial assumptions －adjustment through experience Recognized into other comprehensive income Contributed by employer Benefits paid Balance as of December 31, 2022	Present value of the defined benefit obligations $ 340,553 599 5,108 5,707 - 9,051 33,532 42,583 - ( 16,942) $ 371,901 $ 417,249 1,006 2,086 3,092 - ( 37,258 ) ( 27,946) ( 65,204) - ( 14,584) $ 340,553	Fair value of the planned assets ($ 267,452) - ( 4,204) ( 4,204) ( 1,393) - - ( 1,393) ( 26,574 ) 16,942 ($ 282,681) ($ 216,569) - ( 1,148) ( 1,148) ( 16,859 ) - - ( 16,859) ( 47,460 ) 14,584 ($ 267,452)		Net defined benefit liabilities
			$ 73,101 599 904 1,503 ( 1,393) 9,051 33,532 41,190 ( 26,574 ) - $ 89,220 $ 200,680 1,006 938 1,944 ( 16,859 ) ( 37,258 ) ( 27,946) ( 82,063) ( 47,460 ) - $ 73,101

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The recognized loss of defined benefit plans by function is summarized below:

Summarization by functions Operating costs Promotional expenditure Operating expenditure R&D expense		2023 $ 1,050 84 130 239 $ 1,503		2022
				$ 1,387 107 165 285 $ 1,944

Through the retirement system under the “Labor Standards Law”, the Company was exposed to the following risks:

Investment risk: The Bureau of Labor Fund of the Ministry of Labor Affairs uses the labor pension fund for investment in domestic and foreign equity securities and debt securities, and as bank deposits through proprietary trade or commissioned third parties. However, the amount attributable to the Company's planned asset of the business combination shall not fall below the interest rate offered by the banks in the regions or countries of investment for 2-year time deposit as return.
Interest rate risk: The decrease of the interest rate of government bonds will cause the present value of the defined benefit obligations to go up; however, the return on the debt of the plan assets will go up too; therefore, they will mutually offset the impact on the net defined benefit liabilities.
Salary risk: The calculation of the present value of defined benefit obligation is based on the salaries of the members in the plan of the future. As such, an increase of the salaries of the members of the plan is bound to increase the present value of defined benefit obligation.

The present value of the defined benefit obligation is calculated by qualified actuaries, and the material assumptions on the measurement date are as follows:

Discount rate Anticipated increase in salaries	December 31, 2023 1.25% 2.000%	December 31, 2022
		1.50% 2.000%

In case of reasonable and possible change in the major actuarial assumptions, and other assumptions remained unchanged, the amount of increase (decrease) in the present value of defined benefit obligation will be:

Discount rate Increase by 0.25% Decrease by 0.25% Anticipated increase in salaries Increase by 0.25% Decrease by 0.25%	December 31, 2023 ($ 9,051) $ 9,384 $ 9,142 ($ 8,863)	December 31, 2022	December 31, 2022
	( (	( (	$ 8,467) $ 8,791 $ 8,578 $ 8,303)

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Actuarial assumptions may be inter-related. The possibility of change in specific assumption is not high. Said sensitivity analysis may not be able to reflect the actual change in the present value of defined benefit obligation.

Amount projected for appropriation in 1 year Average maturity of defined benefit obligation	December 31, 2023 $ 26,181 9.9	December 31, 2022	December 31, 2022
			$ 25,688 10.1

XXII. Equity

(I) Share capital

Common stock

Common stock
Authorized shares (thousand) Authorized capital The number of issued and outstanding shares with paid-in capital (thousand shares) Issued and outstanding share capital	December 31, 2023 750,000 $ 7,500,000 491,839 $ 4,918,391	December 31, 2022
			750,000 $ 7,500,000 491,839 $ 4,918,391

The stocks retained for employee stock warrants from the authorized capital stocks totaled 40,000 thousand shares. In order to adjust the capital structure and enhance the return on shareholders’ equity, the Company’s annual shareholders’ meeting on June 8, 2022 resolved to reduce the capital, return the share price of NT$546,488 thousand in cash, and revoke 54,649 thousand shares. The capital reduction ratio was 10%. After the capital reduction, the paid-in capital was NT$4,918,391 thousand with 491,839 thousand shares paid-in. The above capital decrease case was approved by the FSC and became effective on July 12, 2022 under Tai-Zheng-Shang-Zhi No. 1111803141. The Board of Directors resolved to set July 15, 2022 as the record date for the capital decrease. The change registration was completed on August 4, 2022. The base date of stock swap upon capital decrease was September 16, 2022.

(II)

Capital reserve

September 16, 2022. Capital reserve
	December 31, 2023	December 31, 2022
It can be applied for making
losses, cash distribution, or
capitalization(1)
Premium in stock issuance	$ 968,615	$ 968,615
Transaction of treasury stocks	115,437	97,407
Corporate bond conversion premium	141,359	141,359
Coupon rate for release of corporate bond	11,715	11,715

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Donated assets Not to be used for any purpose (2) Stock options	December 31, 2023 71 880,452 $ 2,117,649	December 31, 2022	December 31, 2022
			71 - $ 1,219,167

(1) Such capital reserve can be used to make up for losses, and, when the Company suffers no loss, can be applied for cash distribution or capitalization. However, it is limited to a certain percentage of the annual paid-in capital for the purpose of capitalization.
(2) Such capital reserve is generated upon issuance of convertible corporate bonds, and the adjustment for the subsequent lapse.
(III) Retained earnings and dividend policy

The Company’s Articles of Incorporation were amended at the shareholders’ meeting on June 8, 2022. According to the earnings distribution policy under the Articles of Incorporation, if there is a surplus after account settlement of the fiscal year, the Company shall pay applicable taxes and cover loss carried forward, followed by the allocation of 10% of the remainder as legal reserve, and appropriate special reserve or reverse special reserve. If there is still a balance, it will be pooled up with the undistributed earnings carried forward from previous years for distribution as shareholder dividend under a motion proposed by the Board subject to the final approval of a general shareholders’ meeting. Please refer to Note XXIII (VIII) “Remuneration to Employees and Directors” for the policy for distribution of remuneration to the employees and directors under the Articles of Incorporation.

The Company’s dividend policy takes the long-term business growth and investment projects into consideration, and also attends to a robust financial structure. The Board of Directors is required to propose a motion for allocation of earnings. The dividends will be distributed in the form of stock dividend or cash dividend adequate subject to the future funding needs and level of dilution of capital stocks. Among other things, the cash dividend shall be no less than 10% of the total distribution for the current year.

The legal reserve should be contributed until its balance reaches the Company’s total paid-in capital stock. The legal reserve can be appropriated to cover previous losses. Where the Company did not operate at a loss, the part of the legal reserve in excess of 25% of the paid-in capital could be taken as capital and may be allocated in cash as well.

The Company has special reserve appropriated and reversed in accordance with the Jin-Guan-Zheng-Fa-Zi No. 1010012865 Letter, Jin-Guan-Zheng-Fa-Zi No. 1010047490 Letter, Jin-Guan-Zheng-Fa-Zi No. 1030006415 and “Appropriation of Special Reserve Q&A after the Adoption of International Financial Reporting Standards (IFRSs).”

The Company’s 2022 and 2021 earnings distribution is as follows:

2022 2021

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Legal reserve Cash dividends Cash dividend per share (NTD)	$ 463,353 $ 1,721,436 $ 3.5	$ 296,218 $ 1,202,274 $ 2.2

The distribution of the above cash dividends was adopted by the general shareholders’ meetings held on June 14, 2023 and June 8, 2022, respectively.

The Company’s 2023 earnings distribution proposed by the Board of Directors on March 12, 2024 is as follows:

on March 12, 2024 is as follows:
Legal reserve Cash dividends Cash dividend per share (NTD)		2023
		$ 349,564 $ 1,721,436 $ 3.5

(IV) Other equity items
Exchange differences on translation of foreign financial statements

Balance – beginning of year Those yielded in the current period Translation differences of foreign operations Other comprehensive income for current period Balance – end of period	2023 ( $ 8,435 ) (165,579) (165,579) ($ 174,014)	2022
		( $ 27,260 ) 18,825 18,825 ($ 8,435)

Unrealized gain/loss on valuation of financial assets at fair value through other comprehensive income

comprehensive income
Balance – beginning of year Balance – end of period		2023 ( $ 10,570) ($ 10,570)		2022
				( $ 10,570) ($ 10,570)

Property revaluation surplus

Property revaluation surplus
Balance – beginning of year Balance – end of period		2023 $ 295,781 $ 295,781		2022
				$ 295,781 $ 295,781

(V) Treasury stocks Causes of Redemption The stocks of Total (thousand

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Number of shares as of January 1, 2022 Decrease in current period Number of shares as of December 31, 2022 Number of shares as of January 1, 2023 Number of shares as of December 31, 2023	parent company held by the subsidiaries (thousand shares) 5,724 573 5,151 5,151 5,151		shares)
			5,724 573 5,151 5,151 5,151

Information on shares of the Company held by the subsidiaries as of the balance sheet date is provided as follows:

Name of subsidiary December 31, 2023 King Hsiang Investment Co. December 31, 2022 King Hsiang Investment Co.	Shares (thousand) 5,151 5,151		Book value $ 1,123,000 $ 447,139		Market price
					$1,123,000 $ 447,139

The Company’s treasury stocks may not be pledged in accordance with the Security and Exchange Law, and no privilege of dividend and voting right may be vested in them. The stocks of the Company held by the subsidiaries were treated as Treasury Stock and entitled to the rights vested in shareholders except for the privilege of cash capitalization and voting right.

XXIII. Net profit from continuing operating units

(I) Other gains and (expenses and losses) - net

Other gains Other expenses and losses		2023 $ 187,998 151,146) $ 36,852		2022
	(		(	$ 107,611 89,677) $ 17,934

(II) Interest revenue

terest revenue
Bank deposit Other (Note XXVIII)		2023 $ 139,007 121 $ 139,128		2022
				$ 40,849 4,384 $ 44,233

(III) Other revenue

2023

2022

191

Rent revenue Other revenue – others		2023 $ 2,614 35,112 $ 37,726		2022
				$ 2,613 37,497 $ 40,110

(IV) Other gains and (losses)

(IV) Other gains and (losses)
2023 2022 Profit (loss) from financial assets and financial liabilities Financial assets and financial liabilities mandatorily measured at fair value through profit or loss ( $ 122,988 ) ( $ 231,796 ) Financial liabilities held for trading ( 6,091 ) - Net gain (loss) from foreign currency exchange 36,585 370,643 Loss on disposal of property, plant and equipment ( 12,940 ) ( 22,455 ) Gain (loss) from fair value adjustment of investment property 19,600 ( 1,700 ) Others ( 261) ( 242) ($ 86,095) $ 114,450 (V) Financial cost 2023 2022 Bank loan interest $ 84,458 $ 43,397 Interest on convertible corporate bonds 8,598 - Interest of lease liabilities 314 167 Other interest expenses 9 8 Less: The amount of the cost of assets meeting requirements ( 1,931) ( 972) $ 91,448 $ 42,600 The information related to capitalization of interest is stated as following: 2023 2022 Amount of capitalization of interest $ 1,931 $ 972 Interest rate of capitalization of interest 1.92% 1.37%	2022
	( $ 231,796 ) - 370,643 ( 22,455 ) ( 1,700 ) ( 242) $ 114,450 2022
		$ 972 1.37%

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(VI) Depreciation and amortization

Depreciation and amortization
Summarization of the depreciation expenses by functions Operating costs Operating expenses Summarization of the amortization expenses by functions Operating costs Operating expenses		2023 $ 366,477 20,850 $ 387,327 $ 18,241 5,229 $ 23,470		2022
				$ 312,885 21,564 $ 334,449 $ 11,757 948 $ 12,705

(VII) Employee benefit expenses

Employee benefit expenses
Post-employment benefits Defined contribution plan Defined benefit plan (Note XXI) Resignation benefits Other employee benefits Total of employee benefits expenses Summarization by functions Operating costs Operating expenses		2023 $ 70,497 1,503 72,000 129 2,775,262 $ 2,847,391 $ 2,068,930 778,461 $ 2,847,391		2022
				$ 70,056 1,944 72,000 1,394 2,619,777 $ 2,693,171 $ 1,964,494 728,677 $ 2,693,171

(VIII) Remuneration to employees and directors

According to the Articles of Incorporation, no less than 5%–10% and no more than 1% of the net profit before tax before deduction of the remuneration to employees and directors for the current year should be distributed to employees and directors, respectively. The Board of Directors decided on the 2023 and 2022 remuneration to employees and directors on March 12, 2024 and March 9, 2023, respectively, as follows:

Estimated ratio

2023 2022

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Remuneration to employees Remuneration to directors Amount Remuneration to employees Remuneration to directors		2023 6.39% 0.92% 2023 $ 298,000 $ 43,000		2022
				5.96% 0.86% 2022
				$ 334,000 $ 48,000

If there is still change to the value after the date when the annual parent company only financial statement is approved and released, it is handled as changes in accounting estimates and will be adjusted and booked in the following year.

For information on the remunerations to employees and that to directors decided by the Board of Directors, please visit the Market Observation Post System of Taiwan Stock Exchange.

(IX) Profit (loss) from foreign currency exchange

Total profit of exchange in foreign currencies Total loss of exchange in foreign currencies Net profit		2023 $ 1,071,800 1,035,215) $ 36,585		2022
	(		(	$ 1,477,534 1,106,891) $ 370,643

XXIV. Income tax for continuing operations

(I) Income tax recognized in profit or loss

Main components of the income tax expense are as follows:

Income tax for the year Those yielded in the current period Additional tax levied on undistributed earnings Adjustment of previous year(s) Others Deferred income tax Those yielded in the current period The income tax expenses recognized into profit and/or loss	2023 $ 540,508 101,471 ( 74,293 ) - 567,686 229,612 $ 797,298		2022
			$ 365,205 71,418 35,008 1,148 472,779 184,105 $ 656,884

The accounting income and income tax expenses are adjusted below:

2023 2022

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		2023		2022
Net profit before tax from continuing operation		$ 4,325,890		$ 5,224,759
Income tax expenses for net
profit before tax calculated
at the statutory tax rate		$ 865,178		$ 1,044,952
Expenses and losses which
could not be reduced from
tax		2,145		2,047
Income exempted from income
tax	(	3,928 )		-
Additional tax levied on undistributed earnings		101,471		71,418
Land value increment tax of
investment property		1,325	(	89 )
Deductible temporary
differences not recognized	(	94,600 )	(	497,600 )
The income tax expenses of
previous year(s) adjusted in
the present year	(	74,293 )		35,008
Others		-		1,148
The income tax expenses
recognized into profit and/or
loss		$ 797,298		$ 656,884

(II) Income tax recognized into other comprehensive income

Deferred income tax Those yielded in the current period - Translation of foreign operations －Defined benefit plan re-measurement amount Income tax recognized into other comprehensive income	2023 ( $ 41,396 ) ( 8,238) ($ 49,634 )	2022
		( $ 2,109 ) 16,413 $ 14,304

(III) Deferred income tax assets and liabilities for current period

Income tax liabilities for the current term Income tax payable	December 31, 2023 $ 353,452	December 31, 2022	December 31, 2022
			$ 356,840

(IV) Deferred income tax assets and liabilities

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The deferred income tax assets and liabilities show the following changes:

2023

2023
Deferred income tax assets Temporary difference Loss on inventory devaluation Exchange gains or losses Provision for liabilities Defined benefit retirement plan Loss in impairment in financial assets Provision of compensation loss Financial liabilities at fair value through profit or loss Others Deferred income tax liabilities Portions of profits or losses of subsidiaries, affiliates, and joint ventures recognized adopting the equity method Investment property Defined benefit retirement plan Financial assets at fair value through profit or loss	Balance - beginning of year $ 29,835 6,588 13,354 - 4,500 33,112 982 3,687 $ 92,058 $ 54,545 83,333 3,176 - $ 141,054	Recognized into profit and/or loss $ 30,120 18,750 9,823 ( 8,190 ) - ( 247 ) ( 982 ) 5,263 $ 54,537 $ 278,549 1,325 ( 3,176 ) 7,451 $ 284,149	Recognized into other comprehensiv e income $ - - - 8,238 - - - 41,396 $ 49,634 $ - - - - $ -	Balance - end of year
					$ 59,955 25,338 23,177 48 4,500 32,865 - 50,346 $ 196,229 $ 333,094 84,658 - 7,451 $ 425,203

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2022

2022
Deferred income tax assets Temporary difference Portions of profits or losses of subsidiaries, affiliates, and joint ventures recognized adopting the equity method Loss on inventory devaluation Exchange gains or losses Provision for liabilities Defined benefit retirement plan Temporary difference Loss in impairment in financial assets Tax difference on idle capacity Provision of compensation loss Financial liabilities at fair value through profit or loss Others Deferred income tax liabilities Portions of profits or losses of subsidiaries, affiliates, and joint ventures recognized adopting the equity method Investment property Defined benefit retirement plan Financial assets at fair value through profit or loss Others	Balance - beginning of year $ 123,441 13,211 1,066 32,974 27,999 4,500 98 34,761 - 2,281 $ 240,331 $ - 83,422 - 1,839 5,657 $ 90,918	Recognized into profit and/or loss ( $ 123,441 ) 16,624 5,522 ( 19,620 ) - - ( 98 ) ( 1,649 ) 982 ( 703) ($ 122,383) $ 54,545 ( 89 ) 14,762 ( 1,839 ) ( 5,657) $ 61,722	Recognized into other comprehensiv e income $ - - - - ( 27,999 ) - - - - 2,109 ($ 25,890) $ - - ( 11,586 ) - - ($ 11,586)	Balance - end of year
					$ - 29,835 6,588 13,354 - 4,500 - 33,112 982 3,687 $ 92,058 $ 54,545 83,333 3,176 - - $ 141,054

(V) The deductible temporary differences and unused loss credit of the deferred income tax assets that are not recognized in the parent company only balance sheet

Deductible temporary differences not recognized - overseas subsidiaries	December 31, 2023 $ 2,660,000	December 31, 2022	December 31, 2022
			$ 2,800,000

(VI) Summarized amount of temporary differences related to investment but not recognized as deferred income tax liabilities

As of December 31, 2023 and 2022, the taxable temporary differences related to the investment in subsidiaries and not recognized as deferred income tax liabilities were NT$4,361,000 thousand and NT$4,028,000 thousand, respectively.

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(VII) Approval of income tax

Except for 2020, the tax collection authorities had approved all the profit-seeking enterprise income tax returns of the Company as of 2021.

XXV. Earnings Per Share

Earnings Per Share
Basic EPS Diluted earnings per share		2023 $ 7.25 $ 7.22	Unit: NTD per share 2022 $ 8.86 $ 8.78

The weighted average number of common shares used to calculate the earnings in the earnings per share (EPS) are enumerated below:

Net profit of the year

Net profit of the year
The net profit of owner attributed to the Company Impacts of potential common stock with diluting effects: Interest after tax of convertible corporate bonds Net profit for calculating the basic and diluted earnings per share Number of shares The weighted average number of common shares to be used to calculate basic earnings per share (EPS) Impacts of potential common stock with diluting effects: Remuneration to employees Convertible corporate bonds The weighted average number of common shares for calculating the diluted earnings per share (EPS)		2023 $ 3,528,592 6,878 $ 3,535,470 2023 486,688 2,020 1,277 489,985

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shares are included in the calculation when the said common stock exercises the diluting effect in order to calculate the diluted earnings per share. When the diluted earnings per share are calculated prior to issuance of shares as employee remunerations as determined in the following year, the diluting effect from the said potential common stock shall continue to be taken into consideration, too.

XXVI. Capital risk management

The Company managed their capitals to assure that, insofar as various entities within the Group continued operations, the returns to shareholders could be maximized through optimal balances in liabilities and equity.

The Company’s structure consisted of its net debts (namely the loans less cash and cash equivalents) and equity (namely the capital stock, additional paid-in capital, retained earnings and other equity less treasury stocks).

It was not necessary for the Company to comply with any other external capital requirements.

XXVII. Financial instruments

(I) Fair value - financial instruments that are not measured at fair value

The management of the Company believed that the financial assets and financial liabilities not measured at fair value that was close to the fair value thereof. As of December 31, 2023 and 2022, there was no significant difference between the book value and fair value.

(II) Information on fair value – financial instruments measured at fair value on a recurring basis
Fair value hierarchy

December 31, 2023

December 31, 2023
Financial assets at fair value through profit or loss Derivative financial instruments Financial liabilities at fair value through profit or loss Derivative financial instruments		Degree I $ - $ -		Degree II $ 43,349 $ 21,860		Total
						$ 43,349 $ 21,860

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December 31, 2022

December 31, 2022
Financial liabilities at fair value through profit or loss Derivative financial instruments		Degree I $ -		Degree II $ 4,908		Total
						$ 4,908

There was no transfer between fair value measurements Degree 1 and Degree 2 in 2023 and 2022.

Evaluation techniques and an input value of Degree 2 fair value measurement

Categories of financial instruments Evaluation techniques and input values Derivative financial Discounted cash flow approach: Future cash instruments - Forward flows are estimated based on observable foreign exchange forward exchange rates and contractual contracts & FX swaps forward exchange rates, discounted at a rate contracts that reflects the credit risk of various trading counterparts.

Derivatives – Convertible The binary tree-based convertible bond valuation corporate bond model is adopted to estimate the bond value conversion option and the call option value based on the stock price volatility at the end of the period, the risk-free interest rate, the risk discount rate, and the liquidity risk.

(III) Categories of financial instruments

Categories of financial instruments
Financial assets At fair value through profit or loss At fair value through profit or loss compulsorily Measured at amortized cost (Note 1) Financial liabilities At fair value through profit or loss Held for transactions Measured at amortized cost (Note 2)	December 31, 2023 $ 43,349 14,456,020 21,860 15,057,678	December 31, 2022
		$ - 13,410,511 4,908 13,536,691

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Note 1: The balances included the financial assets at amortized costs, such as cash and cash equivalents, accounts receivable, other receivables and refundable deposits.
Note 2: The balances included the financial liabilities measured at amortized costs, such as short-term loans, notes and accounts payable, other payables, long-term loans (including those due within a year), long-term notes payable, corporate bonds payable, and guarantee deposits received.
(IV) Objectives and policies of financial risk management

The Company manages foreign currency exchange rate risk, interest rate risk, equity instrument price risk, credit risk and liquidity risk to reduce the potential adverse effects of market uncertainty on the financial performance of the Company. The Company’s significant financial plans are reviewed by the Audit Committee and/or the Board of Directors in accordance with relevant regulations and internal control systems. The Company strictly abides by relevant financial standards for overall financial risk management and division of authority when executing financial plans.

The Company hedged against the exposure through derivative financial instruments, in order to mitigate the effect posed by such risks. The application of derivative financial instruments was governed by the policies passed by the Company’s Board of Director, as the written principles for application of foreign risk, interest risk, credit risk, derivative financial instruments and non-derivative financial instruments and residual current fund. The internal auditors kept rechecking the compliance with the policies and limit of exposure. The Company never engaged in transactions of financial instruments (including derivative financial instruments) for the purpose of any speculative operations.

Market risk

The major financial risks incurred by operating activities upon the Company included the risk of foreign exchange rate changes (see (1) below) and risk of interest rate changes (see (2) below). The Company is engaged in various transactions of derivative financial instruments to manage the foreign exchange and interest rate risks to be borne by them, including the hedge against the foreign exchange risk arising from export sales with forward foreign exchange and FX swaps contracts.

The Company’s exposure to the market risk over related financial instruments and the management and measurement methods adopted by the Company with respect to the risk remained unchanged.

(1) Foreign exchange rate risk

Several subsidiaries of the Company engaged in foreign currency-denominated sales and purchases, which exposed the Company the risk of foreign exchange rate changes therefor. About 99.83% of the Company Company’s sales were not denominated in the functional currency. About 96.86% of the costs of goods sold were not denominated in the functional currency. Insofar as it is permitted by policies, the

201

Company utilized forward foreign exchange contracts to help manage the risk.

For the book value of the Company’s non-functional currency-denominated monetary assets and liabilities, and the value of the Company’s monetary liabilities, on the balance sheet date, please see Note XXXI.

Sensitivity analysis

The Company was primarily exposed to the fluctuation in foreign exchange rates in USD.

The following table details the Company’s sensitivity analysis in the case of the increase or decrease of 2% in functional currency against the relevant foreign currency. This 2% represents the sensitivity ratio applied by the Consolidated Company when the foreign exchange rate risk is reported to the management within the Group, and also the management’s evaluation on reasonable changes of the foreign exchange rate. The sensitivity analysis included only outstanding foreign currency-denominated monetary items and forward foreign exchange contracts designated to hedge against cash flows, and their translation at the end of the year was adjusted by changes in exchange rates by 2%. The positive figures in the following table indicate the amount decreased for the net profit before tax when NTD against the related currencies appreciates 2%; when NTD against the related currencies depreciates 2%, the effects to the net profit before tax will be negative at the same amount.

amount.
Loss	Effect of USD
	2023 $ 73,190	2022
		$ 91,388

(i) Primarily as a result the Company’s receivables, payables and loans which were denominated in USD and still outstanding on the balance sheet date, without hedging against cash flows.

The Company’s sensitivity to exchange rates declined in the current year, primarily as a result of the decrease in the cash and cash equivalents denominated in USD of the Company that led to the decrease in balance of net assets of the Company denominated in USD.

(2) Interest rate risk

The interest rate risk arose as a result of the loans bearing interest accruing at fixed interest rate and floating interest rate borrowed by the Company. The Company maintains an adequate combination of fixed and floating interest rates to manage the interest rate risk.

The book values of the Company’s financial assets and financial liabilities with exposure to interest rates on the balance sheet date are stated as following:

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With fair value interest rate risk －Financial liabilities With cash flow interest rate risk －Financial assets －Financial liabilities	December 31, 2023 $ 84,563 3,948,446 1,465,000	December 31, 2022
		$ 12,234 3,126,813 3,919,108

Sensitivity analysis

The following analyses of sensitivity were determined based on the interest rate risk exposure if derivative and non-derivative financial instruments on the balance sheet dates. For liabilities at floating rate, the analysis was prepared under the assumption that the amount of the liabilities outstanding on the balance sheet date was outstanding during the reporting period. 50 base points mean the interest rate change ratio applied by the Company when it reported interest rates to the management, and also the management’s evaluation on reasonable changes of the interest rate.

If the interest rate increases/decreases by 50 base points and all the other variables remain unchanged, the Company’s pre-tax net profit would increase by NT$11,994 thousand and decrease by NT$4,023 thousand in 2023 and 2022, respectively, primarily as a result of the Company’s exposure to the risk of changes in interest rates for demand deposits and loans.

2. Credit risk

The credit risk denotes the risk that the Company might incur a loss when the trading counterparts default the obligations under the contracts. As of the balance sheet date, the top credit risk the Company might incur in financial losses due to failure by the counterparts in failure in performance of the obligations and the Company’s provision of financial guarantees primarily come from notes the book amount of notes and accounts receivable recognized in the parent company only balance sheet.

Operation-related credit risk

The outstanding accounts receivable of the Company are mainly from customers around the world, and most of them are not provided as collaterals or credit guarantees. Although the Company has procedures in place to monitor and reduce the credit risk of accounts receivable, there is no guarantee that such procedures can completely prevent the loss caused by the credit risk. Such credit risk will increase when economic conditions deteriorate. As of December 31, 2023 and 2022, the balance of accounts receivable of the top ten customers accounted for 81% and 77% of the balance of the Company’s accounts

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receivable, respectively; the credit risk concentration of the remaining accounts receivable is relatively insignificant.

3.

In order to mitigate the credit risk, on the balance sheet date, the Consolidated Company would recheck on a case-by-case basis the recoverable amount of notes and accounts receivable to assure that for the notes and accounts receivable which were not recoverable, appropriate impairment loss has been duly amortized. Accordingly, the Company’s management held that the Consolidated Company’s credit risks had been significantly mitigated. Liquidity risk

The Company has based on management and maintaining sufficient cash and cash equivalent to support the Group’s business operation and minimize the impact of changes in cash flow. The Company’s management closely watches the usage of the financing credit lines in banks and assures faithful compliance of the terms and conditions set forth under the loan contracts.

To the Company, bank loans function as a key source of liquidity. Please refer to the information provided in (2) Financing Ratio below for the financial ratio yet to be drawn down by the Company.

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

Non-derivative financial liabilities remaining contract maturity analysis is prepared in accordance with the earliest payment date expected of the Company and the undiscounted cash flows (including principal and estimated interest) of financial liabilities. Therefore, the Company may be required to immediately repay the bank loan is illustrated in the following table without considering the probability that the bank may immediately exercise such right. The other non-derivative financial liabilities maturity analysis is prepared in accordance with the agreed repayment date.

The undiscounted interest for the cash flow of interest payable at floating interest rate derived from the bond yield curves at the balance sheet date.

December 31, 2023

Liabilities without interest Lease liabilities Floating interest rate instruments Fixed interest rate instruments	Repayment on demand or less than 1 months	Repayment on demand or less than 1 months		1 month ~ 3 months	3 months ~ 1 year	3 months ~ 1 year	1year~5 years	1year~5 years		Over5 years
		$ 2,876,606 1,168 - - $ 2,877,774		$ 3,308,510 2,342 - - $ 3,310,852		$ 2,859,162 6,928 - - $ 2,902,090		$ 196,919 32,548 - 1,445,556 $ 1,675,023		$ - 41,577 - 19,444 $ 61,021

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The other information about lease liabilities maturity analysis is stated as following:

stated as following:	lowing:	lowing:
Less than 1 year 1 Lease liabilities$ 10,438 $ December 31, 2022 Repayment on demand or less than 1 months Liabilities without interest $ 1,647,482 Lease liabilities 1,125 Floating interest rate instruments 221,622 Fixed interest rate instruments - $ 1,870,229	Less than 1 year		1	year~5 years		5 years~10 years			10 years~15 years		15 years~20 years		Over 20 years $ - Over5 years	Over 20 years
			$									$ -
							3
Liabilities without interest Lease liabilities Floating interest rate instruments Fixed interest rate instruments
		$ 1,647,482 1,125 221,622 - $ 1,870,229			$ 3,547,061 2,254 330,600 - $ 3,879,915			$ 2,534,718 5,745 26,886 - $ 2,567,348		$ 1,049,220 3,110 - 3,340,000 $ 4,392,330			$ - - - - $ -

The other information about lease liabilities maturity analysis is stated as following:

stated as following:	lowing:
Less than 1 year 1 year~5 years 5 years~10 years 10 years~15 years 15 years~20 years Over 20 years Lease liabilities$ 9,124 $ 3,110 $ - $ - $ - $ - (2) Facility December 31, 2023 December 31, 2022 Unsecured bank overdraft (to be reviewed annually) －Already drawn down $ 1,465,000 $ 3,040,000 －Not yet drawn down - 3,991,288 $ 1,465,000 $ 7,031,288 Secured bank overdraft －Already drawn down $ - $ 879,108 －Not yet drawn down 2,000,000 1,120,892 $ 2,000,000 $ 2,000,000	Less than 1 year		1 year~5 years	5 years~10 years	10 years~15 years		15 years~20 years		Over 20 years $ - 31, 2022	Over 20 years
								$ 3,040,000 3,991,288 $ 7,031,288 $ 879,108 1,120,892 $ 2,000,000

XXVIII. Transactions-related party

The transactions between the Company and other related parties are as follows, except those already disclosed in the Notes:

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(I) Names of related parties and their relationship

Names of related parties and their relationship
Related parties’names King Hsiang Investment Co. Goldex Holding Limited Gold Circuit International Ltd. Gold Circuit Enterprise Limited Suzhou Gold Circuit Electronics Ltd. Changshu Gold Circuit Electronics Ltd. Changshu Gold Circuit Technology Co., Ltd.	Relationship with the Company
	Subsidiary Subsidiary Subsidiaries indirectly held Subsidiaries indirectly held Subsidiaries indirectly held Subsidiaries indirectly held Subsidiaries indirectly held

(II) Operating revenue

Ltd. Operating revenue
Related parties’names Suzhou Gold Circuit Electronics Ltd. Changshu Gold Circuit Electronics Ltd. Changshu Gold Circuit Technology Co., Ltd. Purchase Related parties’names Suzhou Gold Circuit Electronics Ltd. Changshu Gold Circuit Electronics Ltd. Changshu Gold Circuit Technology Co., Ltd.	2023 $ 201,732 41,561 29,710 $ 273,003 2023 $ 10,121,772 4,941,611 1,789,945 $ 16,853,328	2022
		$ 105,564 5,517 20,920 $ 132,001 2022
		$ 11,493,931 6,283,149 1,687,159 $ 19,464,239

(III) Purchase

(IV) Receivables from related parties (excluding loans to related parties)

Related parties’names Accounts receivable Suzhou Gold Circuit Electronics Ltd. Changshu Gold Circuit Electronics Ltd. Changshu Gold Circuit Technology Co., Ltd. Other receivables Suzhou Gold Circuit Electronics Ltd. Changshu Gold Circuit Technology Co., Ltd. Changshu Gold Circuit Electronics Ltd.	December 31, 2023 $ 65,286 15,060 11 $ 80,357 $ 59,097 948 - $ 60,045	December 31, 2022	December 31, 2022
			$ 73,778 1,172 68 $ 75,018 $ 24,081 119 10 $ 24,210

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No guarantee is received for the outstanding accounts receivable from related parties. For receivables from related parties in 2023 and 2022, the Company has not provided allowance losses.

(V) Accounts payable to related parties

Accounts payable to related parties
Related parties’names Accounts payable Suzhou Gold Circuit Electronics Ltd. Changshu Gold Circuit Electronics Ltd. Changshu Gold Circuit Technology Co., Ltd. Other payables Goldex Holding Limited	December 31, 2023 $ 3,905,447 1,420,663 314,617 $ 5,640,727 $ 10,566	December 31, 2022
			$ 4,402,324 1,137,871 184,526 $ 5,724,721 $ -

No guarantee is provided for the balance of outstanding accounts payable to related parties.

(VI) Loans to related parties (including interest receivable)

Type of related party Interest revenue Changshu Gold Circuit Technology Co., Ltd. Suzhou Gold Circuit Electronics Ltd.		2023 $ - - $ -		2022
				$ 3,094 69 $ 3,163

The loan to subsidiaries and interest have been fully recovered in 2022.

(VII) Endorsement and guarantee

Endorsement and guarantee
Type of related party Goldex Holding Limited Suzhou Gold Circuit Electronics Ltd. Changshu Gold Circuit Electronics Ltd. Gold Circuit Enterprise Limited Gold Circuit International Ltd. Goldex Holding Limited	December 31, 2023 USD 21,000 USD - USD - USD 20,000 USD 8,000 EUR 3,000	December 31, 2022
			USD 23,000 USD 20,000 USD 8,000 USD 20,000 USD 8,000 EUR 5,000

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(VIII) Others

Others
Type of related party Other revenue Suzhou Gold Circuit Electronics Ltd. King Hsiang Investment Co.		2023 $ 123 24 $ 147		2022
				$ 2,619 24 $ 2,643

(IX) Remuneration to the management

Remuneration to the management
Short-term employee benefits Post-employment benefits		2023 $ 87,941 1,510 $ 89,451		2022
				$ 90,911 1,512 $ 92,423

The salaries and remunerations to directors and other key management were determined by the Salary Committee in accordance with the personal performances and trends in the markets:

XIX. Pledged assets

The following assets were provided as collateral for financing loans and for the

tariffs of imported raw materials and supplies:

Land Building - net	December 31, 2023 $ 648,300 335,860 $ 984,160	December 31, 2022	December 31, 2022
			$ 648,300 354,665 $ 1,002,965

XXX. Material contingencies

The amount of unused letters of credit issued by the Company for procurement of raw materials and machinery & equipment are enumerated as following (expressed in NTD thousand):

NTD thousand):
Currency type JPY USD EUR	December 31, 2023 $ 296 33,900 894	December 31, 2022
		$ 29 9,740 177

XXXI. Information about financial assets and liabilities in foreign currencies with significant

influence:

The following information was summarized according to the foreign currencies other than the functional currencies of the Company. The exchange rates disclosed was used to translate the foreign currencies into the functional currency. Financial assets and liabilities in foreign currencies with significant influence are summarized as following:

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December 31, 2023

December 31, 2023
Foreign currency Foreign currency assets Monetary items USD $ 386,371 RMB 2,726 Euro 1,470 JPY 36,000 THB 2 Foreign currency liabilities Monetary items USD 267,188 RMB 366 Euro 2,424 JPY 33,900 December 31, 2022 Foreign currency Foreign currency assets Monetary items USD $ 415,211 RMB 3,513 Euro 887 JPY 64,400 Foreign currency liabilities Monetary items USD 266,420 RMB 22 Euro 2,302 JPY 243,860	Exchange rate 30.705 (USD:NTD) 4.327 (CNY:NTD) 33.98 (EUR:NTD) 0.2173 (JPY:NTD) 0.9017 (THB:NTD) 30.705 (USD:NTD) 4.3270 (CNY:NTD) 33.98 (EUR:NTD) 0.2173 (JPY:NTD) Exchange rate 30.71 (USD:NTD) 4.408 (CNY:NTD) 32.72 (EUR:NTD) 0.2324 (JPY:NTD) 30.71 (USD:NTD) 4.408 (CNY:NTD) 32.72 (EUR:NTD) 0.2324 (JPY:NTD)	Book value
		$11,863,522 11,795 49,951 7,823 2 $11,933,093 $ 8,204,008 1,584 82,368 7,366 $ 8,501,995 Book value
Foreign currency assets Monetary items USD RMB Euro JPY Foreign currency liabilities Monetary items USD RMB Euro JPY
		$12,751,130 15,485 29,023 14,967 $12,810,605 $ 8,181,758 97 75,321 56,673 $ 8,313,849

XXXII. Noted disclosures

(I) Information related to material transactions and (II) information related to reinvested enterprises:
Lending of funds to others: Attachment 7
Endorsement and guarantee to others: Attachment 1.
Marketable securities held – end of period: Attachments 2 and 8.

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Cumulative amount of the same marketable security purchased or sold reaching NT$300 million or more than 20% of the paid-in capital: Attachment 3.
Acquisition amount of real estate reaching NT$300 million or more than 20% of the paid-in capital: Attachment 9.
Amount on disposal of real estate reaching NT$300 million or more than 20% of the paid-in capital: None.
Purchase/sale amount of transactions with related parties reaching NT$100 million or more than 20% of the paid-in capital: Attachment 4 and 10.
Accounts receivable from related party reaching NT$100 million or more than 20% of the paid-in capital: Attachment 5 and 11.
Transactions of derivatives: Note VII.
Information on investees: Attachment 6.
(III) Information on investment in Mainland China
The name of the investee in Mainland China, main items involved in the scope of operation, paid-in capital size, investment method, capital importation/exportation, holding ratio, investment profits and losses, book value of investments at end of term, repatriated investment profits or losses, and investment ceiling value for Mainland China: Attachment 12.
Major transactions and their values, payment terms, unrealized profits or losses that have incurred directly or indirectly through a third region with the investees in Mainland China: Attachment 13.
Direct, or indirect, via a third area, endorsement, guarantee or provision of collateral made with the investees in the Mainland China: Attachment 1.
Direct, or indirect, via an enterprise in a third area, financing with the investees in the Mainland China: Attachment 7.
Other transactions that produce material effects on the income or financial status in the current period: None.
(IV) Information of major shareholders: Names and shareholding quantities and ratios of shareholders that hold at least 5% of the equity: Attachment 14.

210

GOLD CIRCUIT ELECTRONICS LTD.

Endorsement and guarantee made for others

January 1 to December 31, 2023

Attachment 1

Unit: NTD thousand, USD thousand, CNY thousand, EUR thousand

No.	Endorsement and guarantee company Name	Counterpart	Counterpart	Limits of endorsement and guarantee to a single enterprise (Note 1)	Maximum balance of endorsement / guarantee made during the current period	Balance of endorsement / guarantee at end of the period	Amount actually disbursed	Endorsement/ guarantee secured by property	Accumulated amount of endorsement and guarantee as a percentage in the net worth of the financial statements in the most recent period (%)	Maximum limits of endorsement and guarantee (Note 2)	Endorsement /guarantee provided by the Company to the subsidiary (Note 3)	Endorsements/ guarantees provided by subsidiaries to parent company (Note 3)	Endorsement/ guarantee in Mainland China (Note 3)
		Name	Affiliation
0	GOLD CIRCUIT ELECTRONICS LTD.	Goldex Holding Limited Gold Circuit International Limited Gold Circuit Enterprise Limited Suzhou Gold Circuit Electronics Ltd. Changshu Gold Circuit Electronics Ltd.	Subsidiary wholly invested by the Company directly Company wholly invested via a subsidiary indirectly Company wholly invested via a subsidiary indirectly Company wholly invested via a subsidiary indirectly Company wholly invested via a subsidiary indirectly	$ 11,365,320 11,365,320 11,365,320 11,365,320 11,365,320 11,365,320	$ 707,020 ( USD 23,000 ) 173,550 ( EUR 5,000 ) 259,400 ( USD 8,000 ) 648,500 ( USD 20,000 ) 609,600 ( USD 20,000 ) 245,920 ( USD 8,000 )	$ 644,805 ( USD 21,000 ) 101,940 ( EUR 3,000 ) 245,640 ( USD 8,000 ) 614,100 ( USD 20,000 ) - ( USD - ) - ( USD - )	$ - ( USD - ) - ( EUR - ) - ( USD - ) - ( USD - ) - ( USD - ) - ( USD - )	$ - - - - - -	4.26% 0.67% 1.62% 4.05% - -	$ 22,730,641 22,730,641 22,730,641 22,730,641 22,730,641 22,730,641	Y Y Y Y Y Y	N N N N N N	N N N N Y Y

Note 1: The aggregate amount of the endorsements/guarantees provided by the Company to a single enterprise shall not exceed 75% of the Company’s net value in the current period. The maximum of the endorsements/guarantees made on December 31, 2023 was equivalent to 75% of the Company’s most recent financial statements audited or certified by the CPA (for Q3 of 2023).

Note 2: The aggregate amount of the endorsements/guarantees made by the Company outward shall not exceed 150% of the Company’s net value in the current period. The maximum of the endorsements/guarantees made on December 31, 2023 was equivalent to 150% of the Company’s most recent financial statements audited or certified by the CPA (for Q3 of 2023).

Note 3: Enter Y only in the case of the parent company’s endorsements/guarantees toward subsidiary(ies), a subsidiary’s endorsements/guarantees toward its parent company, and the endorsements/guarantees toward the Mainland China area.

211

Unit: NTD thousand

GOLD CIRCUIT ELECTRONICS LTD.

Marketable securities held – end of year

December 31, 2023

Attachment 2

Holder	Type and name	Affiliation to the issuer	Account title			End ofperiod	End ofperiod			Remarks
				Number of shares		Book value	Equity (%)		Fair value
GOLD CIRCUIT ELECTRONICS LTD. 〃〃〃〃〃	Stock AMB Technology Co., Ltd ULTRA PRECISION TECHNOLOGY COMPANY King Hsiang Investment Co. Gold Circuit Electronics (Thailand) Co., Ltd. Goldex Holding Limited	－－ Subsidiary Subsidiary Subsidiary	Financial assets at fair value through other comprehensive income - noncurrent Financial assets at fair value through other comprehensive income - noncurrent Long-term equity investment under equity method Long-term equity investment under equity method Long-term equity investment under equity method	267,857 1,000,000 19,999,400 20,750,000 181,910,000		$ - - $ - $ 58,658 651,691 9,462,754 $ 10,173,103	1.984 10.290 99.997 100.000 100.000		$ - - $ - $ 58,658 651,691 9,462,754 $ 10,173,103

212

GOLD CIRCUIT ELECTRONICS LTD.

Cumulative amount of the same marketable securities purchased or sold reaching NT$300 million or more than 20% of the paid-in capital

2023

Attachment 3

Unit: NTD thousand, unless otherwise specified

Buying/selling company	Type and name (Note 1)	Account title	Trading counterpart (Note 2)	Affiliation (Note 2)	Beginning of period	Beginning of period	Buy (Note 3)	Buy (Note 3)		Sale (Note 3)	Sale (Note 3)		End of period	End of period
					Number of shares	Amount	Number of shares	Amount	Number of shares	Selling price	Book cost	Disposal gain or loss	Number of shares	Amount
GOLD CIRCUIT ELECTRONIC S LTD.	Gold Circuit Electronics(Thailand) Co., Ltd	Investments under equity method	-	-	20,750,000	$ 667,644							20,750,000	$ 667,644

Note 1: Securities mentioned in this table refer to stocks, bonds, beneficiary certificates and marketable securities derived from the above items.

Note 2: Investors whose securities are accounted using the equity method are required to complete these two fields, and the remainder can be left blank. Note 3: The cumulative amount of purchases and sales shall be separately calculated according to the market price to determine whether it reaches NTD 300 million or 20% of the paid-in capital.

Note 4: Paid-in capital refers to that of the parent company. In the case of an issuer whose shares have no par value or a par value other than NT$10 per share, the requirement of 20% of paid-in capital for transaction amount shall be calculated based on 10% of the equity attributable to the owners of the parent company on the balance sheet.

213

GOLD CIRCUIT ELECTRONICS LTD.

Purchase/sale amount of transactions with related parties reaching NT$100 million or more than 20% of the paid-in capital

January 1 to December 31, 2023

Attachment 4

Unit: NTD thousand

Supplier (customer)	Trading counterpart	Affiliation		Status	Status		Distinctive terms and conditions of trade and the reasons	Distinctive terms and conditions of trade and the reasons	Notes/accounts receivable (payable)	Notes/accounts receivable (payable)	Remarks
			Purchase (sale)	Amount	Percentage in total purchase (sale) amount %	Duration	Unit price	Duration	Balance	Percentage in total accounts/notes receivable (payable) %
GOLD CIRCUIT ELECTRONICS LTD. GOLD CIRCUIT ELECTRONICS LTD. GOLD CIRCUIT ELECTRONICS LTD. GOLD CIRCUIT ELECTRONICS LTD.	Suzhou Gold Circuit Electronics Ltd. Changshu Gold Circuit Electronics Ltd. Changshu Gold Circuit Technology Co., Ltd. Suzhou Gold Circuit Electronics Ltd.	Company wholly invested via a subsidiary indirectly Company wholly invested via a subsidiary indirectly Company wholly invested via a subsidiary indirectly Company wholly invested via a subsidiary indirectly	Purchase Purchase Purchase Sales	$ 10,121,772 4,941,611 1,789,945 ( 201,732 )	43 21 8 ( 1 )	O/A 3 months O/A 4 months O/A 3 months O/A 3 months	- - - -	－－－－	( $ 3,905,447 ) ( 1,420,663 ) ( 314,617 ) 65,286	( 49 ) ( 18 ) ( 4 ) 1

214

GOLD CIRCUIT ELECTRONICS LTD.

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

December 31, 2023

Attachment 5


Attachment 5								Unit: NTD thousand
Companies stated into accounts receivable	Trading counterpart	Affiliation	Balance of accounts receivable - related party	Turnover (Note 1)	Overdue accounts receivable - related party		Amounts received in subsequent period - related party	Allowance loss
					Amount	Accounting treatment
GOLD CIRCUIT ELECTRONICS LTD.	Suzhou Gold Circuit Electronics Ltd.	Company wholly invested via a subsidiary indirectly	Accounts receivable $ 65,286 Other receivables 59,097	2.90 -	$ - -	－－	$ 21,264 31,593	$ - -

Note 12: The days sales outstanding are not calculated for other receivables from related parties.

215

Unit: NTD thousand

GOLD CIRCUIT ELECTRONICS LTD.

Information related to the reinvested companies… such as names and locations.

January 1 to December 31, 2023

Table 6

Investor	Investee	Location	Principal business	Original investment cost	Original investment cost	Holdings at end ofyear	Holdings at end ofyear	Holdings at end ofyear	Investment gain (loss) of the investee	Investment gain (loss) recognized for the current period (Note1)	Remarks
				End of the current period	End of the previous period	Number of shares	Percentage (%)	Book value
GOLD CIRCUIT ELECTRONICS LTD. 〃〃 Goldex Holding Limited 〃 Gold Circuit International Limited Gold Circuit Enterprise Limited 〃	King Hsiang Investment Co. Goldex Holding Limited Gold Circuit Electronics (Thailand) Co., Ltd. Gold Circuit International Limited Gold Circuit Enterprise Limited Suzhou Gold Circuit Electronics Ltd. Changshu Gold Circuit Electronics Ltd. Changshu Gold Circuit Technology Co., Ltd.	No. 149-1, Zhong Zeng Rd., Tamsui Dist, New Taipei City Trust Net Chambers Lotemau Centre, P.O. Box 1225, Apia, Samoa No. 664/25 Pracharat Bamphen Rd., Sam Saen Nok, Huai Khwang, Bangkok, 10310, Thailand P.O. Box 362, Road Town, Tortola, Virgin islands, British Turst Net Chambers Lotemau Centre, P.O. Box 1225, Apia, Samoa No. 238, Jinfeng Road, New District, Suzhou City, Jiangsu Province No. 9, Jiulong Rd., Changshu Southeast Economic Development Zone, Jiangsu Province No. 816, Southeast Avenue, Changshu Hi-Tech Industrial Development Zone, Jiangsu Province	General investment business 〃 Design, produce and sell multi-layer printed circuit boards General investment business 〃 Design, produce and sell multi-layer printed circuit boards 〃〃	$ 199,994 5,822,733 667,644 3,239,310 2,383,429 3,239,310 959,724 980,105	$ 199,994 6,116,948 - 3,239,310 2,670,554 3,239,310 959,724 980,105	19,999,400 181,910,000 20,750,000 98,000,000 83,010,000 98,000,000 30,010,000 33,000,000	99.997 100.000 100.000 100.000 100.000 100.000 100.000 100.000	$ 58,658 9,462,754 651,691 6,551,040 3,104,559 6,710,069 3,573,768 ( 566,002 )	$ 692,609 2,828,412 1,787 1,970,722 866,209 1,978,397 716,234 144,845	( $ 1,282 ) 2,814,780 1,787 1,964,013 859,286 1,971,688 705,681 148,475	(Note 2)

Note 1: The investment gain (loss) recognized for the current period has taken into consideration the effects of unrealized (realized) gross losses on sales among reinvested companies.

Note 2: The investment loss of King Hsiang Investment Co. recognized in the current period, NT$1,282 thousand, includes the investment gain recognized under equity method, NT$692,588 thousand, the reversal of the financial asset valuation profit derived by Gold Circuit Investment for holding the Company’s stocks under the “Accounting Principles for Management of Treasury Stocks,” NT$18,030 thousand, and the dividend revenue received from the Company, NT$18,030 thousand.

216

GOLD CIRCUIT ELECTRONICS LTD.

Fund loaned by investees to others

January 1 to December 31, 2023

Attachment 7

Unit: NT$ thousand, USD thousand, and CNY thousand

No.	Loaner	Debtor	Whether a related party or not	Transaction items	Maximum balance for the current period	Balance – end of period	Amount actually disbursed	Interest rate interval (Note 3)	Nature of lending of funds (Note 1)	Amount	Reasons for short-term financing	Allowance for doubtful accounts	Collateral	Collateral	Limit of loan to each borrower (Note 2)	Limit of total lending (Note 2)
													Title	Value
1 2 2 2 2 2	Goldex Holding Limited Gold Circuit Enterprise Limited Changshu Gold Circuit Electronics Ltd. Changshu Gold Circuit Electronics Ltd. Suzhou Gold Circuit Electronics Ltd. Suzhou Gold Circuit Electronics Ltd.	Gold Circuit International Limited Gold Circuit International Limited Changshu Gold Circuit Technology Co., Ltd. Changshu Gold Circuit Technology Co., Ltd. Changshu Gold Circuit Technology Co., Ltd. Changshu Gold Circuit Technology Co., Ltd.	Y Y Y Y Y Y	Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables	$ 95,580 ( USD 3,000) 97,275 ( USD 3,000) 889,000 ( CNY 200,000) 243,188 ( USD 7,500) 818,070 ( CNY 185,000) 809,640 ( USD 26,000)	$ 85,974 ( USD 2,800) 92,115 ( USD 3,000) 865,400 ( CNY 200,000) 230,288 ( USD 7,500) 800,495 ( CNY 185,000) - ( USD -)	$ 85,974 ( USD 2,800) 92,115 ( USD 3,000) 865,400 ( CNY 200,000) 211,343 ( USD 6,883) 800,495 ( CNY 185,000) - ( USD -)	4.000%~5.000% 4.000%~5.000% 1.500%~3.550% 0.800%~4.200% 2.700%~3.500% 1.500%~5.100%	(2) (2) (2) (2) (2) (2)	$ - - 84,595 84,595 150,505 150,505	Working capital Working capital Working capital Working capital Working capital Working capital	$ - - - - - -	－－－－－－	$ - - - - - -	$ 26,975,323 9,155,016 5,391,014 5,391,014 9,110,276 9,110,276	$ 26,975,323 9,155,016 5,391,014 5,391,014 9,110,276 9,110,276

Note 1: The fund loaned to others is categorized two types as following by nature:

(1) Business association

(2) Short-term financing needed

Note 2: The limit of funds lent to a single borrower and aggregate amount of the fund loaned to others by a reinvested company (except Goldex Holding Limited and Gold Circuit Enterprise Limited) shall not exceed 150% of the reinvested company’s net value in its most recent

financial statements audited or certified by the CPA (for Q3 of 2023). The limit of fund loaned to a single borrower and aggregate amount of the fund loaned to others by Goldex Holding Limited and Gold Circuit Enterprise Limited shall not exceed 300% of their net value in their most recent financial statements audited or certified by the CPA (for Q3 of 2023).

The limit of fund loaned to a single borrower and aggregate amount of the fund loaned to others by any reinvested company in Mainland China shall not exceed 150% of the reinvested company’s net value in its most recent financial statements audited or certified by the CPA (for Q3 of 2023).

Note 3: The interest rate interval for the funds lent in 2023

217

GOLD CIRCUIT ELECTRONICS LTD.

Marketable securities held by investees - end of period

December 31, 2023

Table 8

Unit: NTD thousand

Holder	Type and name	Affiliation to the issuer	Account title			End ofperiod	End ofperiod			Remarks
				Number of shares		Book value	Equity (%)		Fair value
King Hsiang Investment Co. 〃〃	Stock LEE CHI ENTERPRISE CO., LTD. GOLD CIRCUIT ELECTRONICS LTD.	－ The parent company in which King Hsiang Investment Co. held 99.997% shares	Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current	155,595 5,151,375		$ 2,420 1,123,000 $ 1,125,420	0.068 1.047		$ 2,420 1,123,000 $ 1,125,420

218

GOLD CIRCUIT ELECTRONICS LTD.

Acquisition amount of real estate reaching NT$300 million or more than 20% of the paid-in capital

2023

Attachment 9

Unit: NTD thousand, unless otherwise specified

Real estate acquiring company	Property name	Date of occurrence	Transaction currency/amount	Payment status	Trading counterpart	Affiliation	If the trading counterparty is a related party, the information of the previous transfer	If the trading counterparty is a related party, the information of the previous transfer	If the trading counterparty is a related party, the information of the previous transfer	If the trading counterparty is a related party, the information of the previous transfer	Reference for price determination	Purpose of acquisition and use status	Other agreements
							Owner	Relationship with issuer	Date of transfer	Amount
Gold Circuit Electronics (Thailand)Co., Ltd.	Land	11/14/2023	THB $392,294	All repaid in full.	IPP IP 7 COMPANY LIMITED	Non-related party	N/A	N/A	N/A	N/A	Professional land appraisal report	Development of new business

Note 1: If the acquired assets are subject to appraisal according to the regulations, the appraisal result shall be indicated in the “Reference for price determination” column.

Note 2: Paid-in capital refers to that of the parent company. In the case of an issuer whose shares have no par value or a par value other than NT$10 per share, the requirement of 20% of paid-in capital for transaction amount shall be calculated based on 10% of the equity attributable to the owners of the parent company on the balance sheet.

Note 3: The date of occurrence refers to the date of contract signing, date of payment, date of consignment trade, date of transfer, date of resolution of the board of directors, or other dates based on which the counterparty and amount of the transaction, whichever date is earlier, can be determined.

219

GOLD CIRCUIT ELECTRONICS LTD.

Purchase/sale amount of transactions of reinvested companies with related parties reaching NT$100 million or more than 20% of the paid-in capital

January 1 to December 31, 2023

Attachment 10

Unit: NTD thousand

Supplier (customer)	Trading counterpart	Affiliation		Status	Status		Distinctive terms and conditions of trade and the reasons	Distinctive terms and conditions of trade and the reasons	Notes/accounts receivable (payable)	Notes/accounts receivable (payable)	Remarks
			Purchase (sale)	Amount	Percentage in total purchase (sale) amount (%)	Duration	Unit price	Duration	Balance	Percentage in total accounts/notes receivable (payable) (%)
Suzhou Gold Circuit Electronics Ltd. Changshu Gold Circuit Electronics Ltd. Changshu Gold Circuit Technology Co., Ltd. Changshu Gold Circuit Electronics Ltd. Suzhou Gold Circuit Electronics Ltd. Changshu Gold Circuit Technology Co., Ltd.	GOLD CIRCUIT ELECTRONICS LTD. GOLD CIRCUIT ELECTRONICS LTD. GOLD CIRCUIT ELECTRONICS LTD. Suzhou Gold Circuit Electronics Ltd. GOLD CIRCUIT ELECTRONICS LTD. Suzhou Gold Circuit Electronics Ltd.	Ultimate parent company Ultimate parent company Ultimate parent company Associate Ultimate parent company Associate	Sales Sales Sales Sales Purchase Sales	( $ 10,121,772 ) ( 4,941,611 ) ( 1,789,945 ) ( 630,566 ) 201,732 ( 150,505 )	( 93 ) ( 86 ) ( 85 ) ( 11 ) 4 ( 7 )	O/A 3 months O/A 4 months O/A 3 months O/A 4 months O/A 4 months O/A 4 months	- - - - - -	－－－－－－	$ 3,905,447 1,420,663 314,617 378,329 ( 65,286 ) 58,878	91 76 67 20 ( 2 ) 13

220

GOLD CIRCUIT ELECTRONICS LTD.

Receivable of the investee from related parties reaching NT$100 million or more than 20% of the paid-in capital

December 31, 2023

Attachment 11

Unit: NTD thousand

Companies stated into accounts receivable	Trading counterpart	Affiliation	Balance of accounts receivable - related party	Turnover (Note 1)	Overdue accounts receivable - related party	Overdue accounts receivable - related party	Amounts received in subsequent period - related party	Allowance loss
					Amount	Accounting treatment
Suzhou Gold Circuit Electronics Ltd. Changshu Gold Circuit Electronics Ltd. Changshu Gold Circuit Technology Co., Ltd. Suzhou Gold Circuit Electronics Ltd. Changshu Gold Circuit Electronics Ltd. Changshu Gold Circuit Electronics Ltd. Suzhou Gold Circuit Electronics Ltd. Changshu Gold Circuit Electronics Ltd. Changshu Gold Circuit Electronics Ltd.	GOLD CIRCUIT ELECTRONICS LTD. GOLD CIRCUIT ELECTRONICS LTD. GOLD CIRCUIT ELECTRONICS LTD. Changshu Gold Circuit Technology Co., Ltd. Suzhou Gold Circuit Electronics Ltd. Changshu Gold Circuit Technology Co., Ltd. Changshu Gold Circuit Technology Co., Ltd. Suzhou Gold Circuit Electronics Ltd. Changshu Gold Circuit Technology Co., Ltd.	Ultimate parent company Ultimate parent company Ultimate parent company Affiliated enterprise Affiliated enterprise Affiliated enterprise Affiliated enterprise Affiliated enterprise Affiliated enterprise	Accounts receivable $ 3,905,447 Accounts receivable 1,420,663 Accounts receivable 314,617 Accounts receivable 76 Accounts receivable 378,329 Accounts receivable 2,979 Other receivables 812,117 Other receivables 1,070 Other receivables 1,105,547	2.44 3.86 7.17 1.77 1.77 1.98 - - -	$ - - - - - - - - -	－－－－－－－－－	$ 1,597,060 899,309 314,617 50 139,547 2,161 - 444 217,793	$ - - - - - - - - -

Note 12: The days sales outstanding are not calculated for other receivables from related parties.

221

GOLD CIRCUIT ELECTRONICS LTD.

Information about investment in Mainland China

January 1 to December 31, 2023

Attachment 12

Unit: NTD thousand/USD thousand

Name of invested company in China	Principal business	Paid-in capital	Investment method (Note 1)	Cumulative investment amount outward remitted from Taiwan - beginning of the period	Investment remittance or regain in the current period	Investment remittance or regain in the current period	Cumulative investment amount outward remitted from Taiwan - end of the period	Net income of investee	Company’s direct or indirect investment Equity (%)	Investment gains or losses recognized for the current period (Note 2)	Book value of investment at ending	Investment income repatriated to Taiwan as of the end of the period
					Outward remitted	Repatriated
Suzhou Gold Circuit Electronics Ltd. Changshu Gold Circuit Electronics Ltd. Changshu Gold Circuit Technology Co., Ltd.	Design, produce and sell multi-layer printed circuit boards Design, produce and sell multi-layer printed circuit boards Design, produce and sell multi-layer printed circuit boards	$ 3,239,310 959,724 980,105	2 2 3	$ 3,239,310 959,724 980,105	$ - - -	$ - - -	$ 3,239,310 959,724 980,105	$ 1,978,397 716,234 144,845	100 100 100	2.(2) $ 1,971,688 2.(2) 705,681 2.(2) 148,475	$ 6,710,069 3,573,768 ( 566,002 )	$ 626,966 252,915 -

Accumulated investments outward remitted from Taiwan at Ending		Investment amount approved by Investment Commission, MOEA			Limit of investment amount required by Investment Commission, MOEA (Note 4)
$ 5,179,139 USD 161,010		$ 4,943,812 USD 161,010			$ -

Note 1: The modes of investment are classified into the following four types:

Investments in Mainland China companies through remittance from a third area.
To invest in Mainland China companies through a company invested and established in a third area.
To invest in Mainland China companies through reinvesting in an existing company in a third area.
Other ways, ex: discretionary investment contract

Note 2: For the field of investment gain/loss recognized in the current period:

Please mark out if there has been no investment gain or loss yet because the investment is still under planning.
The basis of recognition of investment gain/loss is classified into following three types, which should be marked out.
(1) Financial statements reviewed and approved by an international CPA firm which cooperates with a CPA firm of the ROC.
(2) Financial statements audited by the CPAs of the parent company in Taiwan.
(3) Others

Note 3: The related figures herein should be expressed in NTD.

Note 4: The Company has received the certificate of compliance with business lines of operational headquarters issued by Industrial Development Bureau, MOEA on August 25, 2022. Therefore, the Company may be exempted from the limit of investment amount required by Investment Commission, MOEA.

222

GOLD CIRCUIT ELECTRONICS LTD.

Any significant transactions with investees in Mainland China, either directly or indirectly through a third area

January 1 to December 31, 2023

Attachment 13

Unit: NTD thousand

Related parties’ names	Affiliation of the Company with related party	Type of transaction	Amount		Trading conditions		Notes/accounts receivable (payable)	Notes/accounts receivable (payable)	Unrealized loss (gain)
				Price	Payment terms	Comparison with the general transactions	Balance	Percentage (%)
Suzhou Gold Circuit Electronics Ltd. 〃 Changshu Gold Circuit Electronics Ltd. 〃 Changshu Gold Circuit Technology Co., Ltd. 〃	Company wholly invested via a subsidiary indirectly 〃 Company wholly invested via a subsidiary indirectly 〃 Company wholly invested via a subsidiary indirectly 〃	Purchase Sales Purchase Sales Purchase Sales	$ 10,121,772 201,732 4,941,611 41,561 1,789,945 29,710	$ 10,121,772 201,732 4,941,611 41,561 1,789,945 29,710	Regular Regular Regular Regular Regular Regular	Similar Similar Similar Similar Similar Similar	( $ 3,905,447 ) 65,286 ( 1,420,663 ) 15,060 ( 314,617 ) 11	( 91 ) 1 ( 76 ) - ( 67 ) -	( $ 6,709 ) ( 10,553 ) 3,630

223

GOLD CIRCUIT ELECTRONICS LTD.

Information of Major Shareholders

December 31, 2023

Attachment 14

Name of major shareholder	Shares	Shares
	Number of shares held (share)	Shareholding ratio
Chang-Chi Yang The labor pension reserve fund was fully authorized to Nomura Investment Account for the first time in 2022. Jui-Ching Li	96,622,217 35,601,320 27,651,870	19.64% 7.23% 5.62%

224

§Statement of important accounting titles§

Item
Asset, liability and equity items
Statement of Cash and Cash Equivalent
Statement of Accounts Receivable
Statement of Other Payables
Statement of Inventories
Statement of changes in investment under equity
method
Statement of changes in property, plant and equipment
Statement of changes in accumulated depreciation of
property, plant and equipment
Statement of changes in right-of-use assets
Statement of changes in accumulated depreciation of
right-of-use assets
Statement of Accounts Payable
Statement of Other Payables
Statement of Lease Liabilities
Statement of Corporate Bonds Payable
Statement of Long-term Loan
Statement of Gain and Loss Items
Statement of Operating Income
Statement of Operating Costs
Statement of Manufacturing Expenses
Statement of Selling Expenses
Statement of Management Expenses
Statement of R&D Expenses
Statement of Other Gains, Expenses and Losses
Statement of Financial Cost
Summary of employee benefits, depreciation, depletion
and amortization of the year by function

Number／Index

I
II
III
IV
Note X
Note XI
Note XI
Note XII
Note XII
V
Note XIX
VI.
VII.
VIII.
IX.
X.
XI.
XII.
XIII.
XIV.
Note XXIV
Note XXIV
XV

225

GOLD CIRCUIT ELECTRONICS LTD.

Statement of Cash and Cash Equivalent

December 31, 2023

Statement 1

Unit: NTD thousand

Item Cash Cash on hand and working capital Bank deposit Check and NTD current deposit Foreign currency current deposit Cash equivalents Foreign currency time deposit	Summary US$52,275 thousand @30.705 ERU 264 thousand, @33.98 RMB 85 thousand @4.327 RMB 2,500 thousand, @ 4.327, 10/31/2023 – 1/1/2024, 2.50%		Amount
			$ 880 2,322,327 1,605,094 8,958 369 10,818 $ 3,948,446

226

GOLD CIRCUIT ELECTRONICS LTD.

Statement of Accounts Receivable

December 31, 2023

Statement 2

Unit: NTD thousand

Customer Non-related party R-01 R-02 R-03 R-04 R-05 R-06 Others (Note) Subtotal Related party Suzhou Gold Circuit Electronics Ltd. Changshu Gold Circuit Electronics Ltd. Changshu Gold Circuit Technology Co., Ltd. Subtotal Less: Allowance for doubtful accounts	Summary Payment for purchase of goods 〃〃〃〃〃〃〃〃〃		Amount
		(	$ 1,865,298 1,547,384 995,927 940,330 933,443 630,059 3,402,636 10,315,077 65,286 15,060 11 80,357 37,178) $ 10,358,256

Note: None of the account balance is with an amount exceeding 5% of the total amount.

227

GOLD CIRCUIT ELECTRONICS LTD.

Statement of Other Payables

December 31, 2023

Statement 3

Unit: NTD thousand

Item Related party Suzhou Gold Circuit Electronics Ltd. Changshu Gold Circuit Technology Co., Ltd. Non-related party Business tax refund receivable Accounts receivable from sale of scraps Others (Note)	Summary Sale of equipment and consumables Sale of equipment and consumables		Amount
			$ 59,097 948 60,045 53,829 26,141 2,035 82,005 $ 142,050

Note: None of the account balance is with an amount exceeding 5% of the total amount.

228

GOLD CIRCUIT ELECTRONICS LTD.

Statement of Inventories

December 31, 2023

Statement 4 Unit: NTD thousand

Item Finished goods Work in process Raw materials & supplies Inventories in transit Less: Allowance losses on inventory devaluation and obsolescence (Note)	Summary Double-layer and multi-layer boards 〃 Copper foil substrate, film, chemical agent, drill pen, adhesive tape, overcoat, rivets Double-layer and multi-layer boards		Amount	Amount	Amount
			Cost $ 2,199,841 1,867,165 528,239 42,163 4,637,408 299,773) $ 4,337,635		Net realized value
		(			$ 2,078,160 1,709,096 508,216 42,163 $ 4,337,635

Note: The loss is provided due to devaluation and obsolescence of finished goods, work-in-process and raw materials.

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GOLD CIRCUIT ELECTRONICS LTD.

Statement of Accounts Payable

December 31, 2023

Statement 5

Unit: NTD thousand

Customer Non-related party P-01 P-02 P-03 P-04 Others (Note) Related party Suzhou Gold Circuit Electronics Ltd. Changshu Gold Circuit Electronics Ltd. Changshu Gold Circuit Technology Co., Ltd.	Summary Payment for purchase of goods 〃〃〃〃 Payment for purchase of goods 〃〃		Amount
			$ 906,009 338,845 217,114 156,697 785,147 2,403,812 3,905,447 1,420,663 314,617 5,640,727 $ 8,044,539

Note: None of the account balance is with an amount exceeding 5% of the total amount.

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GOLD CIRCUIT ELECTRONICS LTD.

Statement of Lease Liabilities

December 31, 2023

Statement 6 Unit: NTD thousand

Item Machinery & equipment Plant equipment	Summary	Lease Period 3/2013–2/2025 9/2023–8/2033	Discount rate 1.38% 1.68%		Balance – end of period $ 3,110 81,453 $ 84,563	Note

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GOLD CIRCUIT ELECTRONICS LTD.

Statement of Corporate Bonds Payable

December 31, 2023

Statement 7

Unit: NTD thousand, unless otherwise specified

Bond Name Domestic corporate bonds Second domestic unsecured convertible corporate bonds	Trustee Taipei Fubon Commercial Bank Co., Ltd.	Date of issue 12.15.202 3	Interest payment date Note	Interest rate (%) —				Amount				Book value $ 3,393,537	Payment terms Repayable in a lump sum on maturity date. (The Company has the right to redeem the bonds at any time under given conditions during the period from the day next to the end date on which the convertible corporate bond has been issued for three months to the 40th day prior to the expiration of the issue date.)	Guarantee status
					Total issuance amount $ 4,000,000		Converted amount $ -	Balance – end of period $ 4,000,000		Unamortized premium (discount) $ 606,463)
									(					None

Note: The principal will be repaid in a lump sum at face value on the maturity date.

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GOLD CIRCUIT ELECTRONICS LTD.

Statement of Long-term Loan December 31, 2023

			December 31, 2023
Statement 8 Creditor bank or guarantee institution Mega International Commercial Bank Syndicated banks including Taipei Fubon Bank	Summary Credit loan Syndicated loan		Amount (Note)	Total $ 25,000 1,440,000 $ 1,465,000	Term of Loan 119.11.24 114.12.20	Interest rate interval % 1.78 2.1247	Unit: NTD thousand Mortgage or collateral 無無
		Current portion $ - - $ -	Matured upon expiration of one year $ 25,000 1,440,000 $ 1,465,000

Note: Please refer to Note XVI of the financial statement for the repayment method.

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GOLD CIRCUIT ELECTRONICS LTD.

Statement of Operating Income January 1 to December 31, 2023

Statement 9

Unit: NTD thousand

Item Summary Amount Sales revenue $ 30,511,812 Less: Sales return ( 612,002 ) Sales ( 471,222 allowance $ 29,428,588

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GOLD CIRCUIT ELECTRONICS LTD.

Statement of Operating Costs

January 1 to December 31, 2023

Statement 10

Unit: NTD thousand

Item Direct raw materials Raw materials - beginning of year Add: Ingoing materials in the current period Less: Raw materials, end of period Consumption of direct raw materials Direct labor Manufacturing expenses Manufacturing costs Add: Work in process, beginning of year Less: Work in process, end of year Costs of finished goods Add: Finished goods, beginning of year Procured externally in the current period Less: Finished goods, end of year Sale of scraps and waste materials Loss on inventory devaluation Transferred to sample charges Transferred to other expenses		Amount
	$ 273,315 6,503,423 ( 525,155) 6,251,583 1,337,609 2,737,918 10,327,110 1,241,136 ( 1,867,165) 9,701,081 2,147,638 17,001,772 ( 2,199,841 ) ( 228,467 ) 150,600 ( 19,965 ) ( 1,531) $ 26,551,287

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GOLD CIRCUIT ELECTRONICS LTD.

Statement of Manufacturing Expenses

January 1 to December 31, 2023

Statement 11

Unit: NTD thousand

Item Indirect materials Salary expense Rent expenses Stationery and supplies Travel expense Freight expense Postage expense Repair expense Utilities expense Insurance premium Tax Depreciation Amortizations Food expense Worker's benefits Miscellaneous purchase Consumable materials Packaging materials Processing expense Other expenses	Summary		Amount
			$ 174,626 478,115 1,389 2,195 1,954 50 2,296 294,463 585,109 171,294 7,550 366,477 18,241 15,187 27,178 23,496 64,448 1,783 257,598 244,469 $ 2,737,918

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GOLD CIRCUIT ELECTRONICS LTD.

Statement of Selling Expenses

January 1 to December 31, 2023

Statement 12

Unit: NTD thousand

Item Salary expense Rent expenses Stationery and supplies Travel expense Freight expense Postage expense Repair expense Utility bill Insurance premium Entertainment expense Depreciation Food expense Worker's benefits Commission expenses Import/export expenses Training expense Other expenses	Summary		Amount
			$ 114,752 2,415 107 8,054 3,040 700 378 476 7,456 10,862 1,339 3,338 2,739 386,944 20,441 81 43,819 $ 606,941

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GOLD CIRCUIT ELECTRONICS LTD.

Statement of Management Expenses January 1 to December 31, 2023

Statement 13

Unit: NTD thousand

Item Salary expense Rent expenses Stationery and supplies Travel expense Freight expense Postage expense Repair expense Utility bill Advertising expense Insurance premium Entertainment expense Donation Tax Depreciation Amortizations Food expense Worker's benefits Training expense Other expenses	Summary		Amount
			$ 268,563 2,546 688 8,759 525 486 11,982 4,799 170 14,426 10,356 7,140 1,049 17,948 1,072 898 2,516 3,463 98,250 $ 455,636

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GOLD CIRCUIT ELECTRONICS LTD.

Statement of R&D Expenses

January 1 to December 31, 2023

Statement 14

Unit: NTD thousand

Item Salary expense Rent expenses Stationery and supplies Travel expense Freight expense Postage expense Repair expense Utility bill Insurance premium Depreciation Amortizations Food expense Worker's benefits Training expense Other expenses	Summary		Amount
			$ 335,971 97 85 1,263 22 77 2,554 1,277 21,927 1,563 4,157 2,207 4,898 534 8,135 $ 384,767

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GOLD CIRCUIT ELECTRONICS LTD.

Summary of employee benefits, depreciation, depletion and amortization of the year by function

January 1 to December 31, 2023 and 2022

Statement 15

Unit: NTD thousand

Employee fringe benefit expenses Salary Expenses for labor and health insurance Pension expense Remuneration to directors Other employee benefit expenses Depreciation expenditure Amortization expenditure		2023	Total $ 2,415,990 189,676 72,000 47,020 122,706 387,327 23,470		2022
	Classified as operating costs $ 1,765,414 151,816 50,310 - 101,391 366,477 18,241	Classified as operating expense $ 650,576 37,860 21,690 47,020 21,315 20,850 5,229		Classified as operating costs $ 1,668,755 144,616 51,346 - 99,777 312,885 11,757	Classified as operating expense $ 603,913 34,711 20,654 51,600 17,799 21,564 948	Total
						$ 2,272,668 179,327 72,000 51,600 117,576 334,449 12,705

Note:

The number of employees for this year and the previous year was 2,515 and 2,374 persons, respectively. Six of these employees did not serve as a director concurrently in both years.
A company whose stocks are already listed on TWSE or trade in TPEx shall also disclose the following information:
(1) The average employee benefit expenditure for this year was NT$1,119 thousand (“Total employee benefit expenditure - Total remuneration to directors for this year”/“Number of employees - Number of employees not serving as director concurrently for this year”).
- The average employee benefit expenditure for the previous year was NT$1,117 thousand (“Total employee benefit expenditure - Total remuneration to directors for the previous year”/ “Number of employees - Number of employees not serving as director concurrently for the previous year”).
(2) The average employee salary expenditure for this year was NT$965 thousand (Total salary expenditure for this year/
- “Number of employees - Number of employees not serving as director concurrently for this year”).

The average employee salary expenditure for the previous year was NT$848 thousand (“Total salary expenditure for the

previous year”/ “Number of employees - Number of employees not serving as director concurrently for the previous year”).
(3) Variance in the average employee salary expenditure adjusted was 0.40% (“Average employee salary expenditure for this year - Average employee salary expenditure for the previous year” / Average employee salary expenditure for the previous year).
(4) There are no supervisors in the Company, so disclosure of remuneration for supervisors is not prepared.
(5) The compensation and remuneration policies of the Company (including directors, managers, and employees). A. Director
- a. Fixed: The board meeting is authorized to determine the remuneration to each director according to the standards of the industry; NT$30 thousand is allocated each month for each director now.
- b. Variable: No more than 1% of the annual profit is allocated as director’s remuneration as required by the Articles

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of Incorporation.

B. The remuneration to managers is based on the requirements set forth in Article 29 of the Company Act.
C. The employees are paid according to the applicable requirements of the Company for practitioners and with reference to the salary criteria on the market. 5–10% of the annual profit is allocated as employees’ remuneration as required by the Articles of Incorporation.
D. The remuneration to directors and that to managers need to be periodically evaluated by the Company’s Remuneration Committee and the latter will define the compensation and remuneration.

Description:

The calculation basis applied to the information about the number of employees referred to herein shall be consistent with that applied to employee benefit expenditure and employee salary expenditure, and subject to the average number of employees.
According to IAS 19, employees, including directors and other management officers, might provide services, on a full-time basis, on a part-time basis, permanently, from time to time, or temporarily. Therefore, the “employees” referred to herein include directors, managers, general employees and workers by contract, but exclude supervisors, temporary workers, labor service suppliers, or business contractors.
The “remuneration to directors” means the remuneration, pension, compensation to directors, and income from professional practicing received by all directors, but salary, labor/national health insurance premium, pension and other welfare expenses received by any of them who serves as employee concurrently are excluded.
The “remuneration to supervisors” means the rewards, compensation, and income from performing duties at work.

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Declaration for Consolidated Financial Reports of Affiliated Companies

Companies that shall be included in the compiled Consolidated Financial Statement of Affiliates for 2023 (from January 1, 2023 to December 31, 2023) in accordance with the Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliates are identical to those that shall be compiled in the Consolidated Statement of Parent Company and Subsidiaries as per International Financial Reporting Standard 10 and all the information that shall be disclosed in the Consolidated Financial Statement of Affiliates has been disclosed in the Consolidated Statement of Parent Company and Subsidiaries. Therefore, the Consolidated Financial Statement of Affiliates is not prepared separately.

Declared by:

Company: GOLD CIRCUIT ELECTRONICS LTD.

Responsible person: Chen-Tse Yang

MARCH 12, 2024

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Independent Auditors’ Report

To GOLD CIRCUIT ELECTRONICS LTD.:

Audit opinions

We have audited the accompanying balance sheet of GOLD CIRCUIT ELECTRONICS LTD. and its subsidiaries (Gold Circuit Electronics Group) on December 31, 2023 and 2022 and the related consolidated statements of income, consolidated statements of changes in shareholders’ equity, consolidated statements of cash flow, and notes to the consolidated financial statements (including the material accounting policies summary) from January 1 to December 31, 2023 and 2022.

In our opinion, the major issues of said financial reports prove to have been duly worked out in accordance with and Regulations Governing the Preparation of Financial Reports by Securities Issuers, and the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), and International Financial Reporting Standards Interpretations Committee’s Interpretations (IFRSIC) and Standing Interpretation Committee’s Interpretative Announcement (SIC) recognized and issued into effect by the Financial Supervisory Commission, Executive Yuan (FSC), presenting fairly the consolidated financial position of Gold Circuit Electronics Group on December 31, 2023 and 2022 and the consolidated results of financial performance and consolidated cash flow for the periods starting from January 1 till December 31, 2023 and 2022.

The basis for opinions

We conducted our audit in accordance with the Regulations Governing Auditing and Attestation of Financial statements by Certified Public Accountants and auditing standards. Our responsibilities under those standards are further described in the responsibilities of auditors for the audit of the consolidated financial statements. The personnel of the CPA Firm subject to the independence requirement have acted independently from the business operations of Gold Circuit Electronics Group in accordance with the Code of Ethics and with other responsibilities

243

of the Code of Ethics performed. We believed that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key audit matter

The “key audit matter” means that the independent auditors have used their professional judgment as the basis to audit the most important matters on the 2023 consolidated financial statements of Gold Circuit Electronics Group. These matters were addressed in the content of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on those matters.

The key audit matters of the 2023 consolidated financial statements of Gold Circuit Electronics Group are described as follows:

Recognition of revenue

When the subsidiary in Mainland China actually ships goods, the inventory control is transferred and the income from the triangle trade of GOLD CIRCUIT ELECTRONICS LTD. is recognized. Therefore, it is possible that improper recognition of income exists despite the absence of actual shipment. Therefore, we (the CPAs) believe that there might be risk over whether such type of income occurs. Given this, it is classified as a key audit matter. The policy for recognition of revenue is disclosed in Note IV herein.

The audit procedure that we performed on the above-mentioned key matters primarily covers the following:

Understand and test the design and effectiveness of execution of the major internal control for recognition of revenue of the Company.
Samples were selected from the income statement of the triangle trade to verify how original purchase orders from customers were approved and to verify the shipping receipts and payment collection documents from the subsidiary in Mainland China for confirmation over whether the transaction really occurred or not.

Other information

GOLD CIRCUIT ELECTRONICS LTD. has duly worked out the 2023 and 2022 parent company only financial statements for which we, the Undersigned Certified Public Accountant, have duly worked out the standard type, an Audit Report with unqualified (unreserved) opinion for reference.

Responsibilities of Management and Those in Charge with Governance of the Consolidated Financial Statements

The responsibility of the management is to have the consolidated financial reports presented fairly, in all material respects, in accordance with the “Regulations Governing the Preparation of

244

Financial Reports by Securities Firms”, and the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), International Financial Reporting Standards Interpretations Committee's Interpretations (IFRSIC) and Standing Interpretation Committee's Interpretative Announcement (SIC) recognized and issued into effect by the Financial Supervisory Commission, Executive Yuan (FSC), and also to maintain the necessary internal controls related to the consolidated financial reports to ensure that the consolidated financial reports are free of any material misstatement arising from fraud or errors.

In the preparation of the consolidated financial statements, the management’s responsibility also includes assessing the continuing operation of Gold Circuit Electronics Group, the disclosure of the relevant matters, and the adoption of the continuing operation accounting base, unless the management intends to liquidate Gold Circuit Electronics Group or cease business operation, or there is a lack of any option except for liquidation or suspension.

The governance unit (including the Audit Committee) of Gold Circuit Electronics Group is responsible for supervising the financial reporting process.

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

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

As part of an audit in accordance with the accounting principles, we exercise professional judgment and maintain professional skepticism throughout the audit. We also perform the following works:

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

245

express an opinion on the effectiveness of the internal control of Gold Circuit Electronics Group.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management.
Use the audit evidence obtained as the basis to draw conclusions on the suitability of the continuing operation accounting base adopted by the management and whether or not there are events or circumstances causing significant doubts regarding the continuing operation ability of Gold Circuit Electronics Group have significant uncertainties. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosure are inappropriate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of the auditor’s report. However, future events or circumstances may result in the inability of Gold Circuit Electronics Group to continue operating.
Evaluate the overall presentation, structure, and content of the consolidated statements, including the disclosures, whether the consolidated statements represent the underlying transactions and events in a matter that achieves fair presentation.
Obtain sufficient and appropriate audit evidence on the financial information of the Group in order to express an opinion on the consolidated financial statements. The independent auditor is responsible for guiding, supervising, and implementing the audit of the Group; also, is responsible for forming an opinion on the audit of the Group.

246

We have used the communications with the governing unit as the basis to determine the key audit matters to be performed on the 2023 consolidated financial statements of Gold Circuit Electronics Group. 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 communications.

Deloitte & Touche CPA Chen Chao-Ling CPA Chang Chun-Yi

Financial Supervisory Commission’s Securities and Futures Commission’s written written approval No.: approval No: Jin-Guan-Zheng-Liu-Zi No.: Tai-Cai-Zheng-Liu-Zi No. 0920123784 0930160267

March 12, 2024

247

GOLD CIRCUIT ELECTRONICS LTD. and its subsidiaries

Consolidated Balance Sheet

December 31, 2023 and 2022

Unit: NTD thousand

Code 1100 1110 1150 1170 1200 1220 130X 1410 1470 11XX 1535 1600 1755 1760 1780 1840 1900 15XX 1XXX Code 2100 2120 2150 2170 2200 2230 2250 2280 2399 21XX 2530 2540 2570 2580 2640 2670 25XX 2XXX 3110 3200 3310 3320 3350 3300 3490 3500 31XX 3XXX	Assets Current assets Cash and cash equivalents (Notes IV and VI) Financial assets at fair value through profit or loss - current (Notes. IV & VII) Notes receivable (Notes IV and IX) Accounts receivable (Notes IV, V and IX) Other receivable (Notes IV and IX) Income tax assets for the current period Inventories (Notes IV and X) Prepayments Other current assets (Note XVI) Total current assets non-current assets Financial assets measured at amortized cost – non-current (Note IV and VIII) Property, plant and equipment (Notes IV, XII and XXX) Right-of-use assets (Notes IV, XIII and XXX) Investment property (Notes IV and XIV) Other intangible assets (Notes IV and XV) Deferred income tax assets (Notes IV and XXV) Other non-current assets (Note XVI) Total non-current assets Total assets Liabilities and shareholders’equity Current liabilities Short-term borrowings (Notes IV and XVII) Financial liabilities at fair value through gains or losses – current (Notes IV and VII) Notes payable Accounts payable (Note XIX) Other payables (Note XX) Income tax liability for the current period (Note XXV) Provision for liabilities-current (Notes IV and XXI) Lease liabilities – current (Notes IV and XIII) Other current liabilities (Note XX) Total current liabilities Non-current liabilities Corporate bonds payable (Notes IV and XVIII) Long-term borrowings (Notes IV and XVII) Deferred income tax liabilities (Notes IV and XXV) Lease liabilities – non-current (Notes IV and XIII) Net defined benefit liabilities – non-current (Notes IV and XXII) Other non-current liabilities (Note XX) Total non-current liabilities Total liabilities Equity attributable to owners of the Company (Note XXIII) Share capital Common stock Additional paid-in capital Retained earnings Legal reserve Special reserve Undistributed earnings Total retained earnings Other equity items Treasury stocks Total equity attributable to owners of the Company Total equity Total liabilities and equity		December 31, 2023	December 31, 2023	％ 23 - - 33 - - 18 1 - 75 - 21 1 2 - 1 - 25 100 1 - - 18 9 2 1 - 1 32 10 5 2 - - - 17 49 15 6 3 2 25 30 - - 51 51 100		December 31, 2022	December 31, 2022
			Amount $ 7,740,915 79,437 5,404 10,728,000 110,179 5 5,970,385 275,169 3,305 24,912,799 56,600 6,945,126 230,004 595,800 58,186 287,318 15,410 8,188,444 $ 33,101,243 $ 216,760 21,860 16 6,021,443 3,111,814 702,395 212,729 10,438 177,874 10,475,329 3,393,537 1,465,000 655,027 74,125 89,220 117,880 5,794,789 16,270,118 4,918,391 2,117,649 927,568 475,522 8,373,552 9,776,642 111,197 92,754) 16,831,125 16,831,125 $ 33,101,243				Amount $ 5,973,977 43,302 9,424 10,726,992 88,733 - 5,615,970 265,140 2,934 22,726,472 45,100 6,294,437 168,739 576,200 42,539 176,253 10,858 7,314,126 $ 30,040,598 $ 2,188,434 4,908 116 5,660,421 2,878,042 662,755 252,214 12,284 197,552 11,856,726 - 3,340,000 338,633 3,110 73,101 105,010 3,859,854 15,716,580 4,918,391 1,219,167 464,215 475,522 7,062,701 8,002,438 276,776 92,754) 14,324,018 14,324,018 $ 30,040,598		％
		(				(			20 - - 36 - - 19 1 - 76 - 21 - 2 - 1 - 24 100 7 - - 19 9 2 1 - 1 39 - 11 1 - - 1 13 52 16 4 2 2 23 27 1 - 48 48 100

Notes to the consolidated financial reports constitute a part of these financial reports.

Chairman: Chen-Tse Yang

Manager: Chen-Tse Yang

Accounting Supervisor: Chang-Chin Yang

248

GOLD CIRCUIT ELECTRONICS LTD. and its subsidiaries

Consolidated Statements of Income

January 1 to December 31, 2023 and 2022

Code Operating income 4100 Sales revenue (Note IV) Operating cost (Notes X. XXII and XXIV) 5110 Cost of goods sold 5900 Gross profit Operating expenditure (Notes XXII and XXIV) 6100 Promotional expenditure 6200 Operating expenditure 6300 R&D expenditure 6450 Expected credit impairment loss (profit) 6000 Total operating expenses 6500 Net amount of other gains and losses (Note XXIV) 6900 Net operating profit Non-operating income and expenditure (Notes IV and XXIV) 7100 Interest revenue 7010 Other revenue 7020 Other gain or loss 7050 Financial cost 7000 Total non-operating revenue and expense 7900 Net profit before tax from continuing operation		Unit: 2023	NTD thousand, except for EPS (NT$) 2022 ％ Amount ％ 100 $ 32,785,064 100 74 24,056,976 73 26 8,728,088 27 3 963,997 3 3 983,518 3 3 718,228 2 - 39,549 - 9 2,705,292 8 - 13,916 - 17 6,036,712 19 1 62,826 - - 93,608 - - 285,502 1 ( 1) ( 90,315) - - 351,621 1 17 6,388,333 20	NTD thousand, except for EPS (NT$) 2022 ％ Amount ％ 100 $ 32,785,064 100 74 24,056,976 73 26 8,728,088 27 3 963,997 3 3 983,518 3 3 718,228 2 - 39,549 - 9 2,705,292 8 - 13,916 - 17 6,036,712 19 1 62,826 - - 93,608 - - 285,502 1 ( 1) ( 90,315) - - 351,621 1 17 6,388,333 20	NTD thousand, except for EPS (NT$) 2022 ％ Amount ％ 100 $ 32,785,064 100 74 24,056,976 73 26 8,728,088 27 3 963,997 3 3 983,518 3 3 718,228 2 - 39,549 - 9 2,705,292 8 - 13,916 - 17 6,036,712 19 1 62,826 - - 93,608 - - 285,502 1 ( 1) ( 90,315) - - 351,621 1 17 6,388,333 20	NTD thousand, except for EPS (NT$) 2022 ％ Amount ％ 100 $ 32,785,064 100 74 24,056,976 73 26 8,728,088 27 3 963,997 3 3 983,518 3 3 718,228 2 - 39,549 - 9 2,705,292 8 - 13,916 - 17 6,036,712 19 1 62,826 - - 93,608 - - 285,502 1 ( 1) ( 90,315) - - 351,621 1 17 6,388,333 20	NTD thousand, except for EPS (NT$) 2022 ％ Amount ％ 100 $ 32,785,064 100 74 24,056,976 73 26 8,728,088 27 3 963,997 3 3 983,518 3 3 718,228 2 - 39,549 - 9 2,705,292 8 - 13,916 - 17 6,036,712 19 1 62,826 - - 93,608 - - 285,502 1 ( 1) ( 90,315) - - 351,621 1 17 6,388,333 20
					Amount $ 32,785,064 24,056,976 8,728,088 963,997 983,518 718,228 39,549 2,705,292 13,916 6,036,712 62,826 93,608 285,502 90,315) 351,621 6,388,333		％
			(	(			100 73 27 3 3 2 - 8 - 19 - - 1 - 1 20

(To be continued)

249

(Continued)

Code 7950 Income tax expense (Notes IV and XXV) 8000 Continuing operation net profit for the year Other comprehensive income 8310 Not reclassified to profit and loss: 8311 Defined benefit plan re-measurement amount (Note XXII) 8349 Incomes tax related to titles not subject to reclassification 8360 May be reclassified to profit and loss subsequently: 8361 Exchange differences on translation of foreign financial statements 8300 Other comprehensive income (net amount after tax) of the year 8500 Total comprehensive income of the year The net earnings belong to: 8610 Owners of the Company The total comprehensive income belongs to: 8710 Owners of the Company EPS (Note XXVI) From continuing operations 9710 Basic 9810 Diluted		2023		％ 5 12 - - 1) 1) 11 12 11		2022
								％
			( (					6 14 - - - - 14 14 14

Notes to the consolidated financial reports constitute a part of these financial reports.

Chairman: Chen-Tse Yang Manager: Chen-Tse Yang Accounting Supervisor: Chang-Chin Yang

250

Unit: NTD thousand

GOLD CIRCUIT ELECTRONICS LTD. and its subsidiaries

Consolidated Statements of Changes in Shareholders’ Equity

January 1 to December 31, 2023 and 2022

				Equity attributable to owners of the Company	Equity attributable to owners of the Company	Equity attributable to owners of the Company	Equity attributable to owners of the Company	Equity attributable to owners of the Company					Total equity
	Capital stock $ 5,464,879 - - - - - - 546,488) 4,918,391 - - - - - - - $ 4,918,391	Additional paid-in capital $ 1,206,574 - - 12,593 - - - - 1,219,167 - - 880,452 18,030 - - - $ 2,117,649		Retained earnings			Undistributed earnings $ 3,927,668 296,218 ) 1,202,274 ) - 4,567,875 65,650 4,633,525 - 7,062,701 463,353 ) 1,721,436 ) - - 3,528,592 32,952) 3,495,640 $ 8,373,552		Other equity items	Property revaluation surplus $ 295,781 - - - - - - - 295,781 - - - - - - - $ 295,781
								Exchange differences on translation of foreign financial statements ( $ 27,260 ) - - - - 18,825 18,825 - ( 8,435 ) - - - - - ( 165,579) ( 165,579) ($ 174,014)	Unrealized gain/loss on valuation of financial assets at fair value through other comprehensive income ( $ 10,570 ) - - - - - - - ( 10,570 ) - - - - - - - ($ 10,570)
			Legal reserve $ 167,997 296,218 - - - - - - 464,215 463,353 - - - - - - $ 927,568		Special reserve $ 475,522 - - - - - - - 475,522 - - - - - - - $ 475,522
(						( ( ( ( (		( ( ( ( (	( ( (		( ( (	( ( ( (	$ 11,402,114 - 1,202,274 ) 12,593 4,567,875 84,475 4,652,350 540,765) 14,324,018 - 1,721,436 ) 880,452 18,030 3,528,592 198,531) 3,330,061 $ 16,831,125

Notes to the consolidated financial reports constitute a part of these financial reports.

Chairman: Chen-Tse Yang

Manager: Chen-Tse Yang

Accounting Supervisor: Chang-Chin Yang

251

GOLD CIRCUIT ELECTRONICS LTD. and its subsidiaries

Consolidated Statements of Cash Flow

January 1 to December 31, 2023 and 2022

Unit: NTD thousand

		Unit: NTD thousand
Code Cash flow from operating activities A10000 Net profit before tax for the year A20010 Income charges (credits): A20300 Expected credit impairment loss (gain on recovery of impairment) A20100 Depreciation expenditure A20200 Amortization expenditure A20900 Financial cost A29900 Provision (reversal) for liabilities A21200 Interest revenue A21300 Dividend income A23800 Inventory devaluation and obsolescence loss A22500 Loss on disposal of property, plant and equipment A20400 Net profit from financial assets at fair value through gains or losses A20400 Net loss from financial liabilities at fair value through gains or losses A24100 Net loss of exchange in foreign currencies A24600 (Gain) loss from fair value adjustment of investment property A29900 Net defined benefit liabilities A30000 Net change in operating assets and liabilities A31130 Notes receivable A31150 Accounts receivable A31180 Other receivables A31200 Inventory A31230 Prepayments A31240 Other current assets A32140 Notes payable A32150 Accounts payable A32180 Other payables A32230 Other current liabilities A33000 Cash yielded in business operation A33200 Interest collected A33500 Income tax paid AAAA Net cash generated by operating activities	2023 $ 5,217,907 ( 44,485 ) 940,984 25,921 117,976 ( 39,147 ) ( 196,469 ) ( 140 ) 126,051 28,716 ( 36,135 ) 1,183 334,263 ( 19,600 ) ( 25,071 ) 4,020 44,042 ( 21,426 ) ( 478,530 ) ( 10,029 ) ( 371 ) ( 100 ) 361,022 197,040 ( 19,678) 6,507,944 196,449 (1,387,303) 5,317,090	2022
		$ 6,388,333 39,549 858,157 16,225 90,315 72,512 ( 62,826 ) ( 124 ) 148,583 34,633 ( 17,611 ) 4,908 154,712 1,700 ( 45,517 ) 8,204 ( 1,661,394 ) 2,494 ( 943,444 ) 1,994 12,965 116 158,371 286,899 88,619 5,638,373 62,803 (1,257,427) 4,443,749

(To be continued)

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(Continued)

Code Cash flow from investing activities B00050 Disposal of financial assets measured at amortized cost B07600 Dividends received B02700 Procurement of property, plant and equipment B04500 Procurement of intangible assets B02800 Proceeds from disposal of property, plant and equipment B03800 Decrease (increase) in refundable deposit B06700 Decrease in other non-current assets BBBB Net cash used in investing activities Cash flow from financing activities C01200 Issuance of corporate bonds C00100 Increase in short-term loans C00200 Decrease in short-term loans C01600 Application for long-term loans C01700 Repayment of long-term loans C01900 Decrease in long-term notes payable C04020 Repayment of lease liability principal C03000 Collection of guarantee deposits received C05600 Interest paid C04500 Cash dividends paid C04700 Capital reduction in cash CCCC Net cash used in financing activities DDDD Impact of change in exchange rate upon cash & cash equivalents EEEE Net increase in cash and cash equivalents E00100 Cash and cash equivalents, beginning of year E00200 Cash and cash equivalents, end of year	2023 ( $ 11,500 ) 140 ( 1,622,790 ) ( 41,647 ) 18,629 ( 4,552 ) - (1,661,720) 4,281,160 2,035,046 ( 3,956,469 ) 1,465,000 ( 3,340,000 ) - ( 15,461 ) 12,870 ( 115,418 ) ( 1,703,406 ) - (1,336,678) ( 551,754) 1,766,938 5,973,977 $ 7,740,915	2022
		( $ 13,400 ) 124 ( 1,360,233 ) ( 2,412 ) 14,667 1,090 3,549 (1,356,615) - 4,884,694 ( 3,999,391 ) 3,676,561 ( 2,322,891 ) ( 1,250,000 ) ( 17,725 ) 26,954 ( 83,795 ) ( 1,189,681 ) ( 540,765) ( 816,039) ( 114,225) 2,156,870 3,817,107 $ 5,973,977

Notes to the consolidated financial reports constitute a part of these financial reports.

Chairman: Chen-Tse Yang Manager: Chen-Tse Yang Accounting Supervisor: Chang-Chin Yang

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GOLD CIRCUIT ELECTRONICS LTD. and its subsidiaries

Notes to consolidated financial statement

January 1 to December 31, 2023 and 2022

(Expressed in Thousand New Taiwan Dollars, unless specified otherwise)

I. History

GOLD CIRCUIT ELECTRONICS LTD. (GCE) was established in Jhongli Dist., Taoyuan City in September 1981, primarily engaged in manufacturing, processing and trading printed circuit boards.

The Company’s stocks have been traded on TWSE since March 1998.

The functional currencies adopted by the Company and its subsidiaries are NTD, CNY and USD respectively. Considering that the Company is a listed company in Taiwan, in order to improve the comparability and consistency of the financial reports, the consolidated financial reports are denominated in NTD.

II.

Date and procedure for resolution of the financial reports

This Consolidated Financial Statement was passed after being officially resolved at the Board of Directors meeting convened on March 12, 2024. III. Applicability of newly promulgated and amended standard rules and interpretations

(I) The first-time adoption of the IFRS, IAS, IFRIC, and SIC approved and effective upon promulgation by the Financial Supervisory Commission (“FSC”) (hereinafter referred to as the “IFRSs” collectively).

The application of the amended IFRSs that are approved and released to take effect by the FSC would not cause significant changes to the accounting policies of the Consolidated Company.

(II) IFRSs approved by the FSC and applicable in 2024

IFRSs approved by the FSC and applicable in 2024
New promulgation/Amendment/Amended Rules and Interpretation Amendments to IFRS 16 “Lease Liability in a Sale and Leaseback” Amendments to IAS 1 “Classification of Liabilities as Current or Non-current” Amendments to IAS 1 “Non-current Liabilities with Covenants” Amendments to IAS 7 and IFRS 7 “Supplier Financing Arrangements”	The effective date promulgated by IASB (Note1)
	Monday, January 1, 2024 (Note 2) Monday, January 1, 2024 Monday, January 1, 2024 Monday, January 1, 2024 (Note 3)

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Note 2: The seller as a lessee shall be subject to IFRS 16 amendments retroactively in a sale and leaseback transaction agreed after the initial application of the IFRS 16.
Note 3: Partial exemption from disclosure requirements is applied upon first application of these amendments.
Amendments to IFRS 16 “Lease Liability in a Sale and Leaseback”

Amendments to IAS 1 “Classification of Liabilities as Current or Non-current” (amended in 2020) and amendments to “Non-current Liabilities with Covenants” (amended in 2022)

The 2020 amendment clarifies that in order to determine whether a liability shall be classified as non-current, it is necessary to evaluate whether the Consolidated Company, at the end of the reporting period, has the right to defer settlement of the liability for at least 12 months after the reporting period. If the Consolidated Company has such right at the end of the reporting period to defer settlement of the liability after the reporting period, the liability should be classified as non-current, irrelevant with whether the Consolidated Company is expected to exercise the right or not.

The 2020 amendment also specifies that

clarifies that if the Consolidated Company may retain the right to defer settlement of a liability only upon compliance with specific terms, it must

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comply with such specific terms at the end of the reporting period, even if the lender will not test its compliance until a later date. The 2022 amendments further clarify that only the contractual terms to be followed before the end of the reporting period affect the classification of a liability. Although the contractual terms that must be complied with within 12 months after the reporting period do not affect the classification of liabilities, relevant information must be disclosed to enable users of financial reports to understand risk that the Consolidated Company may not be able to comply with the contractual terms and will be required to repay the liabilities within 12 months after the reporting period.

The 2020 amendment requires that for the purpose of classification of liabilities, said settlement refers to the discharge from liability through the transfer to the trading counterparty of cash, other economic resources, or the Consolidated Company’s equity instruments. Notwithstanding, where, according to the terms and conditions of liabilities, the liabilities might be paid off at the discretion of the trading counterpart through the transfer of the Consolidated Company’s equity instruments and said discretion is stated into equity separately under IAS 32 “Financial Instruments: Presentation,” the classification of liabilities would remain unaffected by said terms and conditions.

Amendments to IAS 7 and IFRS 7 “Supplier Financing Arrangements”

Supplier financing arrangements are characterized by a commitment by one or more financing providers to pay an company for the amount payable to its supplier, and the company agrees to make a payment on the same day of payment to its supplier (or any date after such payment) the accordance with the terms and conditions of the arrangements. According to the amendments, the Consolidated Company shall provide disclosures that enable users of financial reports to assess the impact of supplier financing arrangements on the Consolidated Company’s liabilities, cash flows, and liquidity risk exposure.

Except for the impact referred to above, the Consolidated Company assesses that other amendments to standards or explanations do not have significant impact on the financial status and performance.

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(III) IFRSs already published by the IASB but not yet recognized or issued into effect by the FSC.

Note 1: Unless otherwise expressly remarked, the aforementioned new/Amendment/Amended Rules or Interpretation come into effect in the fiscal year starting from the respective specified effective dates.
Note 2: The amendments are applicable to the annual reporting period that begins after January 1, 2025. The Company will, when applying the amendments for the first time, recognize the effects as retained earnings of the initial applicable date. When the Consolidated Company uses a non-functional currency as the presentation currency, it will affect the exchange difference of foreign operations under equity on the date of initial application.
Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture”

The amendment provides that if a consolidated company sells or contributes assets to affiliated companies (or joint ventures), or the consolidated company loses the control over a subsidiary but retains significant influence on the subsidiaries (or joint control), and if the aforementioned assets or subsidiary in compliance with the definition of a business under IFRS 3 “Business Combinations” the consolidated company is to recognize the profit and loss of the transactions fully.

In addition, if a Consolidated Company sells or contributes assets to affiliated companies (or joint ventures), or the Consolidated Company loses the control over a subsidiary in the trade with affiliated companies (or joint ventures) but retains significant influence on the subsidiaries (or joint control), and if the aforementioned assets or subsidiary not in compliance with the

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definition of IFRS 3 “Business,” the Consolidated Company is to recognize the profit and loss of the transactions only within the equity scope of the affiliated companies (or joint ventures) irrelevant to the investors, in other words, the profit and loss attributable to the Consolidated Company should be offset.

2.

Amendments to IAS 21 “Lack of Exchangeability”

The amendments clearly stipulate that if an enterprise is able to exchange a currency for another through an exchange transaction with enforceable rights and obligations established through a market or exchange mechanism within the time range of normal management delays, the currency is exchangeable. When the currency is not exchangeable on the measurement date, the Consolidated Company shall estimate the spot exchange rate to reflect the exchange rate that would be used by market participants for orderly transactions on the measurement date in consideration of the prevailing economic conditions. Under such circumstances, the Consolidated Company shall disclose information that will enable users of financial reports to assess how the lack of exchangeability of a currency has affected or is expected to affect its operating results, financial position and cash flows.

In addition to the impact referred to above, the Consolidated Company continued to assess the impact of the other standards and interpretation on the financial position and financial performance up to the date the consolidated financial reports approved and published; also, the relevant influences would be disclosed upon the completion of assessment.

VI. Summary of significant accounting policies

(I) Declaration in compliance

The present consolidated financial reports has been duly worked out in accordance with the Regulations Governing the Preparation of Financial Reports and IFRS accounting standards by the Financial Supervisory Commission. (II) Basis of preparation

Except for the financial instruments measured at fair value, investment properties, and the net defined benefit liabilities recognized at fair value after the project assets are deducted from the current value of defined benefit obligations, this Consolidated Financial Statement has been duly prepared on the grounds of historical costs.

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The evaluation of fair value could be classified into Degree 1 to Degree 3 by the observable intensity and importance of related input value:

Degree 1 input value: refers to the quotation of the same asset or liability in an active market as of the evaluation (before adjustment)
Degree 2 input value: refers to the direct (the price) or indirect (inference of price) observable input value of asset or liability further to the quotation of Level 1.
Degree 3 input value: the unobservable input value of asset or liability.

The Consolidated Company applied the equity method to its invested subsidiaries, affiliated companies or joint ventures when preparing the consolidated financial reports. In order to make the current income, other comprehensive income and equity in the present consolidated financial reports identical with the current income, other comprehensive income and equity attributed to the owner of the Consolidated Company as stated in the consolidated financial reports of the Consolidated Company, the differences between the accounting treatments under the separate and consolidated bases are addressed through adjustment of the “share of other comprehensive income of subsidiaries, associates, and joint ventures under the equity method” and related equity items.

(III) Standards in differentiating current and non-current assets and liabilities
- Current assets include:
Assets held primarily for the purposes of transactions;
Assets anticipated to be realized within 12 months after the balance sheet date; and
Cash and cash equivalents (excluding those restricted for exchanging or liquidating liabilities over 12 months after the balance sheet date).

non-current liabilities include:

Liabilities held primarily for the purposes of transactions;
The liabilities to be liquidated upon due within 12 months after the balance sheet date (those with long-term refinancing or payment term rearrangement completed from the balance sheet date to the financial reports approved and published date are also classified as current liabilities), and
Liabilities that cannot be with the liquidation date deferred unconditionally for at least 12 months after the balance sheet date; Where the liabilities might be

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paid off at the discretion of the other party through the tools of the issuance equity, the classification would remain unaffected.

Those not as aforementioned current assets or current liabilities are classified into non- current assets or non-current liabilities.

(IV) Grounds of consolidation

The present Consolidated financial reports are the financial reports containing the Company, and the entities under the control by the Company (subsidiaries). Consolidated statements of income of comprehensive income already covered the operating profit and/or loss of the subsidiaries, which have been acquired or disposed of the current term, from the date of acquisition until the date of disposal. The financial reports of the subsidiaries have been duly adjusted so that their accounting policies would be consistent with the accounting policies of the Consolidated Company. Upon preparation of the consolidated financial reports, the transactions among entities, balances, gains, expenses and losses on account have been written out in full. The total comprehensive incomes of the subsidiaries were non-controlling interest attributed to the Company’s owners and the non-controlling interest, to become the balance of loss even as the non-controlling interest.

When the change in the ownership equity on a subsidiary of any consolidated company does not result in a loss of control, it is processed as an equity transaction. The book value of the Consolidated Company and the non-controlling equity has been adjusted to reflect the change in the relative equity on the subsidiary. The difference between the adjusted amount of the non-controlling equity and the considerations paid or collected is directly recognized as equity and attributable to the Company’s shareholders.

When the Consolidated Company loses control of a subsidiary, the disposal of gains or losses is the difference between the following two: (1) the sum of the fair value of the consideration collected and the remainder of the investment in the foregoing subsidiary according to the fair value on the date the control was lost and (2) the sum of assets (including good will) and liabilities and non-controlling interests of the said subsidiary according to the book value on the date the control was lost. Meanwhile, the amount relevant to the said subsidiary recognized in other combined gains or losses were managed on the same accounting grounds as those that it shall comply with if the Consolidated Company directly disposes of the relevant assets or liabilities.

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Please refer to Note XI and Attachment 5 for the information, shareholding ratio, and business operation of the subsidiary.

(V) Foreign currency

When the respective entities prepared for the consolidated financial reports, the transactions conducted in currencies other than the entities’ functional currencies (foreign currencies) were converted into the records of functional currencies based on the exchange rates quoted on the date of transactions.

The foreign currencies, non-current items measured at fair values were converted at the exchange rates quoted on the date on which the fair values were determined. The difference in foreign exchange so incurred was entered as the profit and/or loss of the current term. In the event where the change in the fair value was recognized into other comprehensive profit and/or loss, the difference of the foreign exchange so incurred was entered as other comprehensive profit and/or loss.

The non-current items measured at historical costs were converted based on the exchange rate quoted on the date of transaction and were not converted anew.

Upon preparation of the consolidated financial reports, the assets and liabilities of the Company and our foreign operations (including the subsidiaries in the countries of business operation or those using currencies different from the Company’s) were converted to New Taiwan Dollars based on the exchange rate quoted on every balance sheet date. The gain, fee and loss items were converted based on the exchange rates averaged in the current term. The difference of conversion so incurred was entered as other comprehensive income.

If the Consolidated Company disposes of all equities of its foreign operations or disposes of some of the equities of the subsidiaries of its foreign operations and loses control or the retained equities following such disposal are financial assets handled according to the accounting policy for financial instruments, all accumulated differences of conversion that are relevant to the said foreign operations shall be recategorized as gains or losses.

If partial disposal of the subsidiaries of foreign operations does not lead to loss of control, accumulated differences of conversion will be calculated as part of the

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equity transactions proportionally yet they are not recognized as gains or losses. Under other circumstances where overseas operating institutions are partially disposed of, accumulated differences of conversion, on the other hand, are recategorized to gains or losses in proportion to the disposal.

(VI) Inventory

(VII) Property, plant and equipment

The property, plant and equipment under construction were recognized at the amount of the costs after deducting the loss in the accumulated impairment. The costs included fees incurred for professional services and costs of loan which were consistent with the conditions of capitalization. The samples produced for testing whether the assets can operate normally before reaching the expected state of use are measured based on the lower of the cost or net realizable value. The sale price and cost are recognized in profit or loss. For those assets, depreciation started being amortized when those assets were completed to the extent of being ready for use and duly classified into the appropriate categories of property, plant and equipment.

Except own land, for which no depreciation would be provided, the other property, plant and equipment were depreciated and for each and every major part individually, on a straight-line basis within the useful years. The Consolidated Company, at least at the end of each fiscal year, has the estimated useful years, residual value, and depreciation method reviewed, and also delayed the effects of changes in applying accounting estimates.

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When the property, plant, and equipment were written-off, the difference between the net proceeds from disposal and the book value of the asset is recognized in the profit and loss.

(VIII) Investment property

When investment property is written off, the difference between the net proceeds from disposal and the book value of the asset is recognized in the profit and loss.

(IX) Intangible assets
Individually acquired

The intangible assets with limited useful life individually acquired were measured at costs. Subsequently, they were measured at cost deducted with the amount of accumulated amortization and the loss of the accumulated impairment. Intangible assets within the durability period are amortized on a straight-line basis The Consolidated Company reviews at least on the end date of each year the estimated durability period, residual value, and depreciation method and postpones impacts where changes in accounting estimates apply. Intangible assets with uncertain useful years are recognized with the cost less accumulated impairment loss.

Derecognition

When intangible assets are written off, the difference between the net proceeds from disposal and the book value of the asset is recognized in the profit and loss.

(X) Impairment of properties, plants, and equipment, right-of-use assets, investment properties, and intangible assets

The Consolidated Company evaluates on the date shown on each balance sheet whether there are any signs showing that real estate, plants, and equipment, right-of-use assets, and intangible assets might have been impaired. Where any sign of impairment was found existent, the Company estimated the recoverable amount of

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such assets. In the event that the recoverable amount of individual assets could not be estimated, the Consolidated Company estimated the recoverable amount of the units that yielded cash. The common asset is amortized to each cash-generating unit in accordance with a consistent and reasonable sharing basis.

The intangible asset with indefinite useful years and not yet available for use should be tested for impairment at least annually or should be tested when there is an indication of impairment.

(XI) Financial instruments

The financial assets and financial liabilities were recognized onto the consolidated balance sheet when the Consolidated Company became a party to the contract of the financial instruments.

Financial assets

The transaction customs of the financial assets were recognized or derecognized on the transaction day accounting basis.

(1) Type of measurement

The financial assets held by the Consolidated Company include financial assets at fair value through profit or loss, financial assets measured at amortized cost, and investment in equity instruments at fair value through other comprehensive income.

A. The financial assets at fair value through profit or loss.

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B. Financial assets measured at amortized cost

If the financial assets invested by the Consolidated Company meet the following two conditions at the same time, they are classified as financial assets measured at amortized cost:

a. Being held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and
b. The contractual terms of the financial asset give rise, on specified dates, to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Except in the following two circumstances, the interest revenue was calculated at the effective interest rate multiplying by the total book value of the financial assets:

a. For the purchased or originated credit-impaired financial assets, the interest revenue was calculated at the effective interest rate

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multiplying by the amortized cost of the financial assets upon credit adjustment.

b. For those other than purchased or originated credit-impaired financial assets, which, however, became the purchased or originated credit-impaired financial assets subsequently, the interest revenue was calculated at the effective interest rate multiplying by their amortized cost as of the next reporting period after the credit impairment.

C. Investment in equity instruments at fair value through other comprehensive income

However, the Consolidated Company may choose at the time of original recognition to have the equity instrument investment not held for trading and not recognized by the acquirer in the business combination transaction or not with consideration measured at fair value through other comprehensive income.

The dividends from the investment in equity instruments at fair value through other comprehensive income are recognized in profit/loss when the Consolidated Company’s rights of receiving

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payment is confirmed, unless such dividends obviously represents the recovery of part of the investment.

(2) Impairment of financial assets and contact assets

At each date of balance sheet, the Consolidated Company evaluates the impairment loss on financial assets (including accounts receivable) and contract assets based on the expected credit loss.

(3)

The book value of all impairment losses on financial assets were reduced via the allowance account. Derecognition of financial assets

The Consolidated Company only derecognizes financial assets when the rights coming from the contract over cash flows of such assets are expired or financial assets are transferred and nearly all risks and rewards associated with the ownership of such assets have been transferred to another enterprise.

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2. Equity instruments

The liabilities and equity instruments issued by the consolidated company were categorized as financial liabilities or equity based on the substance of the contract agreement and the definition of financial liabilities and equity instruments.

The equity instruments issued by the Consolidated Company were recognized based on the acquisition price less direct issuing cost.

The Consolidated Company’s own equity instruments reacquired were derecognized and deducted under the equity title. The book value is calculated according to the weighted average based on the types of shares and is calculated separately in accordance with the reasons for the recovery. Acquisition, sale, issuance or cancellation of the Consolidated Company' own equity instruments would not be recognized into profit or loss.

Financial liabilities
(1) Subsequent measurement

All financial liabilities are measured at amortized cost based on the effective interest, unless in the following circumstances: Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss refer to the financial liabilities held for trading.

Please refer to Note XXVIII for the determination of fair value.

(2) Derecognition of financial liabilities

Convertible corporate bonds

For the compound financial instruments (convertible corporate bonds) issued by the Consolidated Company, its components are classified as financial liabilities or equity based on the definitions of real

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and financial liabilities and equity instruments under the terms and conditions of the contracts.

5.

The Consolidated Company entered into forward foreign exchange contracts as their derivative financial instruments to manage their exposure to the foreign exchange rate risk.

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derivatives with positive value were classified as financial assets. Those with negative value were classified as financial liabilities.

(XII) Provision for liabilities

The provision for liabilities was determined with the obligation risk and uncertainty taken into account, which is the best estimate of the obligation payable on the balance sheet date.

(XIII) Recognition of revenue

Upon identification of the performance obligation in the contract with customers, the Consolidated Company amortized the transaction price to the performance obligations in the contract and recognize income upon fulfilling performance obligation of the contract.

If the Consolidated Company signs multiple contracts with the same customer (or the customer’s related party) almost at the same time, the Consolidated Company would treat them as one single contract, as the commitment about commodity or labor service under the contracts should be identified as single performance obligation.

Sales revenue

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obsolescence risk; therefore, the Consolidated Company recognized the income and accounts receivable at that moment.

As the ownership of processed products has not yet been transferred at the time of processing on order, no revenue would be recognized at that moment.

(XIV) Lease

The Consolidated Company evaluated if a contract was, or included a lease on the date when the contract was established.

The Consolidated Company was the Lessor.

The Consolidated Company was the Lessee.

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the exercise of right of first refusal, the assets should be depreciated from the starting date of lease until expiration of the useful years.

Subsequently, the lease liabilities were measured at amortized cost using the effective interest method. The interest expenditure was also amortized within the lease period. If there was any change in the lease period or any index or fees determining the lease payments would result in changes of future lease payment, the Consolidated Company re-measured the lease liabilities, and relatively adjusted the right-of-use assets; provided the book value of the right-of-use asset has decreased to zero, the remaining re-measured amount was recognized in the profit or loss. The lease liabilities are individually expressed in the parent company only balance sheets.

(XV) Costs of loan

In addition to the transaction stated in the preceding paragraph, costs of all other loans are recognized into profit and loss upon occurring.

(XVI) Government subsidies

The government subsidies would be recognized only if that it is strongly believed on reasonable grounds that the Consolidated Company would comply with the conditions imposed on the government subsidies and such subsidies may be received affirmatively.

Government subsidies concerning gains are recognized systematically as other income during the period where related costs they are meant to offset are recognized by the Consolidated Company as expenditure. The government subsidies for

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acquisition of non-current assets by the Consolidated Company through procurement/construction or in any other manners should be debited into the book value of the non-current assets, and recognized into profit and/or profit within the useful years of the assets by reducing the depreciation or amortization expenses for the non-current assets.

If government subsidies are meant to compensate for incurred expenditure or losses or for providing the Consolidated Company with immediate financial support and are not associated with costs in the future, they are recognized as profits and losses during the collectible period.

(XVII) Employee benefits

Short-term employee benefits

Short-term employee benefits related liabilities are the non-discounted amount prepaid in exchange for employee services.

Post-retirement benefits

For pension under the defined contribution retirement plan, the amounts of pension to be contributed during the period in which employees provided services were recognized as expenditure.

Resignation benefits

The Consolidated Company had resignation benefit liabilities recognized when the resignation benefit contract cannot be revoked or when recognizing the related reorganization cost (whichever is sooner).

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(XVIII) Income tax

The income tax expenditure denotes the total of the income tax payable in the current term and the deferred income tax.

Income tax for the year

Adjustment of the prior years’ income tax is added to current income tax expenditure in the year the adjustment is made.

Deferred income tax

Deferred income tax is computed in accordance with the temporary differences between book value of the assets and liabilities and the tax base for calculating the taxable income.

All taxable temporary differences relevant to the investment in subsidiaries were recognized as deferred income tax liabilities, unless the Consolidated Company could control the time point of recovery of the control over the temporary difference, or said temporary difference would be very likely not recoverable in the foreseeable future. The deductible temporary differences associated with such investment were recognized as deferred income tax assets, to the extent that sufficient taxable income was available to realization of temporary differences and such differences were expected to be reversed in the foreseeable future.

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The deferred income tax assets and liabilities were measured at the tax rates of that term. The said tax rate would be on the grounds of the tax rates and taxation laws, which had been enacted or had been substantially enacted as of the balance sheet date. The deferred income tax liabilities and assets were measured to reflect the Consolidated Company’s taxation consequences for the book value of the assets and liabilities anticipated to be recovered or reimbursed as of the balance sheet date. Where the investment property measured at fair value is a non-depreciation asset, or the economic model as held would not be likely to consume almost all of the economic benefit from the assets over time, the Consolidated Company would assume that the book value of the assets was recovered through sale.

The exceptions to the rules for recognition and disclosure of deferred income tax assets and liabilities of the Pillar Two income tax have been applied to the Consolidated Company; therefore, the Consolidated Company neither recognizes the deferred income tax assets and liabilities of the Pillar Two income tax nor discloses relevant information.

3.

Current and deferred income tax

Where the current income tax or deferred income tax was generated from acquisition of any subsidiary, the income tax effect should be included into the invested subsidiary's accounting treatment.

V. Critical accounting judgments, estimates and key sources of assumption uncertainty

Where the Consolidated Company adopts accounting policies and the relevant information is found hardly available from other sources, the management must come to relevant judgments, estimates, and assumptions based on historical experiences and other relevant factors. The actual consequences might differ from the estimates.

Major sources of estimates and hypotheses of uncertainty

Estimated impairment of financial assets

The estimated impairment of accounts receivable was based on the Consolidated Company’s assumptions about the probability and loss rate of default. The Consolidated

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Company took into consideration the historical experience, existing market conditions and forward-looking estimates to make the assumptions and select the inputs to the impairment calculation. For details of the key assumptions and inputs used, please refer to Note XXVIII. If the actual cash flow in the future is less than what the Consolidated Company expects, a material impairment loss may occur as a result.

VI. Cash and cash equivalents

Cash and cash equivalents
Cash on hand and working capital Bank’s notes and current deposit Cash equivalents (investment due within three (3) months in the date of initial maturity). Bank time deposit	December 31, 2023 $ 1,146 7,290,020 449,749 $ 7,740,915	December 31, 2022
			$ 1,209 4,665,815 1,306,953 $ 5,973,977

VII. Financial instruments at fair value through profit or loss

Financial assets-current At fair value through profit or loss compulsorily Derivatives (not under hedge accounting) －Forward foreign exchange contracts (1) －FX swaps contracts (2) Non-derivative financial assets －TWSE/TPEx-listed stocks Financial liabilities–Current At fair value through profit or loss compulsorily Derivatives (not under hedge accounting) －Forward foreign exchange contracts (1) －FX swaps contracts (2) - Conversion option (3. Note 18)	December 31, 2023 $ 66,949 10,068 2,420 $ 79,437 $ - - 21,860 $ 21,860	December 31, 2022	December 31, 2022
			$ 40,166 - 3,136 $ 43,302 $ 704 4,204 - $ 4,908

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(I) The outstanding forward foreign exchange contracts not under hedge accounting on the balance sheet date are stated as follows:

December 31, 2023 Sold forward foreign exchange contracts Sold forward foreign exchange contracts Sold forward foreign exchange contracts December 31, 2022 Sold forward foreign exchange contracts Sold forward foreign exchange contracts Sold forward foreign exchange contracts	Currency type Sell USD/Buy CNY Sell USD/Buy CNY Sell USD/Buy NTD Sell USD/Buy NTD Sell USD/Buy CNY Sell USD/Buy CNY	Maturity date January 31, 2024–February 29, 2024 January 26, 2024–April 04, 2024 January 02, 2024–March 05, 2024 January 03, 2023–March 09, 2023 January 31, 2023 January 31, 2023–May 26, 2023	Contract amount (NTD Thousand)
			USD 15,000 /CNY 106,818 USD 85,000 /CNY 609,218 USD 40,000 /NTD 1,261,481 USD 40,000 /NTD 1,227,696 USD 6,000 /CNY 43,135 USD 108,000 /CNY 759,938

(II) The outstanding FX swaps contracts not under hedge accounting on the balance sheet date are stated as follows:

December 31, 2023 －FX swaps contracts December 31, 2022 －FX swaps contracts	Currency type Sell USD/Buy NTD Sell USD/Buy NTD	Maturity date January 31, 2024 January 31, 2023	Contract amount (NTD Thousand)
			USD 44,000 /NTD 1,361,088 USD 44,000 /NTD 1,347,036

The Consolidated Company entered into forward foreign exchanges and FX swaps primarily in order to hedge against the risk arising from foreign currency assets and liabilities due to fluctuations in foreign exchange rate.

(III) Financial liabilities with embedded derivative conversion options are split off by issuing convertible bonds.

VIII. Financial assets measured at amortized cost

December 31, 2023 December 31, 2022

Noncurrent Domestic investment Time deposit whose original maturity date exceeds 3 months $ 56,600 $ 45,100

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As of December 31, 2023 and 2022, the range of interest rates for time deposits whose original maturity date exceeds 3 months were an annual rate of 1.11%–1.25% and 0.86%–1.125%, respectively.

IX. Notes receivable, accounts receivable and other receivables

Notes receivable Total book value measured at amortized cost Less: Allowance losses Generated from operations Accounts receivable Total book value measured at amortized cost Less: Allowance losses Generated from operations Other receivables Business tax refund receivable Accounts receivable from sale of scraps Others	December 31, 2023 $ 5,404 - $ 5,404 $ 10,798,156 ( 70,156) $ 10,728,000 $ 53,829 50,285 6,065 $ 110,179	December 31, 2022	December 31, 2022
	(	(	$ 9,424 - $ 9,424 $ 10,842,198 115,206) $ 10,726,992 $ 43,861 39,887 4,985 $ 88,733

Notes receivable and accounts receivable

The Consolidated Company’s average credit period for sale of commodities was 180 days. The notes receivable and accounts receivable were collected without interest. Considering that the Consolidated Company’s trading counterparts were primarily domestic/foreign renowned companies/entities with fair goodwill, no material credit risk was expected to arising therefor. Upon determination of the recoverability of notes receivable and accounts receivable, the Consolidated Company took into account and all changes in the quality of credit of the accounts receivable during the period starting from the initial granting of the loan until the balance sheet date. The historical experiences showed that most of the notes and accounts receivable have been recovered successfully.

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Consolidated Company’s management held that the Consolidated Company’s credit risks had been significantly mitigated.

The Consolidated Company recognized the allowance losses on notes and accounts receivable based on the lifetime expected credit loss. The lifetime expected credit losses were calculated using the reserve matrix, by considering the customers’ past default records and current financial position, industrial economic situations, as well as the recoverable amount. As the Consolidated Company’s credit loss history showed that there was no significant difference among the loss patterns of different customer bases, the reserve matrix didn’t further divide the customer bases, but only established the expected credit losses based on the number of days for which the notes and accounts receivable became overdue.

Where any evidence showed that the trading counterparts had severe financial difficulties, and it was impossible for the Consolidated Company to reasonably expect the recoverable amount, e.g. the counterparts were under restructuring and liquidation, the Consolidated Company would write off the related notes and accounts receivable. However, the pursuit of recovery would be continued, and the amount recovered from such pursuit would be recognized as gains or losses.

The allowance losses on notes and accounts receivable measured by the Consolidated Company based on the reserve matrix are stated as following: December 31, 2023

Accounts receivable

Expected Credit Loss (ECL) Rate Total book value Allowance losses (lifetime expected credit loss) Amortized cost		Not overdue		Overdue for 1~60 days		Overdue for 61~90 days		Overdue for 91~120 days	Overdue for more than 120 days		Total
	(	0%～0.04% $ 10,621,354 4,619) $ 10,616,735	(	0%～21.98% $ 97,482 14,330) $ 83,152	(	0%～59.2% $ 39,244 13,057) $ 26,187	(	76.91% $ 1,369 1,053) $ 316	99.23%～100% $ 38,707 ( 37,097) $ 1,610	(	$ 10,798,156 70,156) $ 10,728,000

December 31, 2022

Accounts receivable

Expected Credit Loss (ECL) Rate Total book value Allowance losses (lifetime expected credit loss) Amortized cost		Not overdue		Overdue for 1~60 days		Overdue for 61~90 days		Overdue for 91~120 days	Overdue for more than 120 days		Total
	(	0%～0.06% $ 10,525,322 6,068) $ 10,519,254	(	0%～19.05% $ 218,561 26,155) $ 192,406	(	59.96% $ 31,257 18,741) $ 12,516	(	73.82% $ 4,529 3,343) $ 1,186	94.38%～100% $ 62,529 ( 60,899) $ 1,630	(	$ 10,842,198 115,206) $ 10,726,992

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The information about changes in allowance losses on notes and accounts receivable is stated as follows:

Accounts receivable

Accounts receivable
Balance – beginning of year Add: Impairment loss provided in the current period (1) Less: Reversal of impairment loss in the current period (1) Foreign currency exchange difference Balance – end of period	2023 $ 115,206 - ( 44,485 ) ( 565) $ 70,156		2022
			$ 75,140 39,549 - 517 $ 115,206

(1) The net amount of the total book value of accounts receivable overdue for more than 90 days from the beginning of year dropped on December 31, 2023 by NT$26,982 thousand in net and it resulted in a net decrease in allowance losses by NT$26,092 thousand as well. The net amount of the total book value of accounts receivable overdue for more than 90 days increased on December 31, 2022 by NT$28,172 thousand in net and it resulted in a net increase in allowance losses by NT$25,420 thousand.

X. Inventory

Inventory
Finished goods Work in process Raw materials & supplies Inventories in transit	December 31, 2023 $ 2,436,553 2,675,496 816,173 42,163 $ 5,970,385	December 31, 2022
			$ 2,462,092 2,334,137 643,342 176,399 $ 5,615,970

The nature of the sales cost is defined as follows:

Cost of inventory sold Loss on inventory devaluation Income from sale of scraps and waste materials Others	2023 $ 22,960,593 126,051 ( 635,287 ) ( 131,203) $ 22,320,154	2022
		$ 24,997,437 148,583 ( 780,146 ) ( 308,898) $ 24,056,976

XI. Subsidiaries

The subsidiaries included into the consolidated financial reports

The present consolidated financial reports were prepared for the following key entities:

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Investor	Name of subsidiary	Business nature General investment and international trade business General investment business Design, produce and sell multi-layer printed circuit boards General investment and international trade business General investment and international trade business Design, produce and sell multi-layer printed circuit boards Design, produce and sell multi-layer printed circuit boards Design, produce and sell multi-layer printed circuit boards	Percentage of equity held	Percentage of equity held	Description
			December 31, 2023	December 31, 2022
The Company The Company The Company Goldex Holding Limited Goldex Holding Limited Gold Circuit Enterprise Limited Gold Circuit Enterprise Limited Gold Circuit International Limited	Goldex Holding Limited King Hsiang Investment Co. GOLD CIRCUIT ELECTRONICS (THAILAND) CO., LTD. Gold Circuit Enterprise Limited Gold Circuit International Limited Changshu Gold Circuit Electronics Ltd. Changshu Gold Circuit Technology Co., Ltd. Suzhou Gold Circuit Electronics Ltd.		100.00 99.997 100.00 100.00 100.00 100.00 100.00 100.00	100.00 99.997 - 100.00 100.00 100.00 100.00 100.00	Note 1

Note 1: Thailand Gold Circuit Electronics Ltd. was established by Gold Circuit Electronics Ltd. on May 25, 2023 to meet the business development needs of the Group. As of December 31, 2023, the investment amount was US$20,750 thousand

XII. Property, plant and equipment

Self-use

C	Own land		Building		Machinery & equipment		Transportation equipment		Office equipment	Other equipment	e	Unfinished construction and quipment pending acceptance		Total
	$ 701,186 - - 356,905 - $ 1,058,091 $ - - - - $ - $ 1,058,091 $ 701,186 - - - - $ 701,186 $ - - - - - $ - $ 701,186	( ( ( (	$ 4,409,149 - 111 ) 19,064 35,155) $ 4,392,947 $ 3,433,706 105 ) 132,673 28,374) $ 3,537,900 $ 855,047 $ 4,358,347 - - 18,626 32,176 $ 4,409,149 $ 3,281,762 - - 129,955 21,989 $ 3,433,706 $ 975,443	( ( ( ( ( ( (	$ 13,890,894 - 464,389 ) 862,998 154,786) $ 14,134,717 $ 10,098,052 420,819 ) 551,990 119,367) $ 10,109,856 $ 4,024,861 $ 13,005,678 - 457,758 ) 1,210,291 132,683 $ 13,890,894 $ 9,899,541 411,646 ) 757 ) 512,157 98,757 $ 10,098,052 $ 3,792,842	( ( ( ( ( (	$ 67,668 - 5,717 ) 10,255 546) $ 71,660 $ 44,357 5,266 ) 6,505 450) $ 45,146 $ 26,514 $ 64,272 - 1,668 ) 4,605 459 $ 67,668 $ 39,585 1,584 ) - 6,009 347 $ 44,357 $ 23,311	( ( ( ( ( ( (	$ 144,450 - 9,199 ) 18,446 1,337) $ 152,360 $ 102,392 8,742 ) 12,402 1,090) $ 104,962 $ 47,398 $ 141,875 - 7,721 ) 9,094 1,202 $ 144,450 $ 97,549 7,354 ) 265 ) 11,652 810 $ 102,392 $ 42,058	$ 2,676,870 - 106,276 ) 306,326 31,243) $ 2,845,677 $ 2,063,151 103,862 ) 216,299 27,097) $ 2,148,491 $ 697,186 $ 2,464,113 - 92,179 ) 277,610 27,326 $ 2,676,870 $ 1,956,043 89,590 ) 757 175,030 20,911 $ 2,063,151 $ 613,719	( ( (	$ 145,878 1,706,696 - 1,615,128 ) 1,417) $ 236,029 $ - - - - $ - $ 236,029 $ 218,195 1,475,538 - 1,550,113 ) 2,258 $ 145,878 $ - - - - - $ - $ 145,878	( ( ( ( ( ( ( ( (	$ 22,036,095 1,706,696 585,692 ) 41,134 ) 224,484) $ 22,891,481 $ 15,741,658 538,794 ) 919,869 176,378) $ 15,946,355 $ 6,945,126 $ 20,953,666 1,475,538 559,326 ) 29,887 ) 196,104 $ 22,036,095 $ 15,274,480 510,174 ) 265 ) 834,803 142,814 $ 15,741,658 $ 6,294,437
B A D R N B C
B D D N B N C
B A D R N B C
B D R D N B N

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There was no sign of impairment in 2023. Therefore, the Consolidated Company didn’t recognize impairment loss.

Depreciation expenditure is appropriated in accordance with the straight line method and the useful years illustrated below:

e useful years illustrated below:
Buildings
Main building of plant	11~55 years
Electromechanical & power
equipment	5~20 years
Engineering system	3~25 years
Others	5 years – 15 years
Machinery & equipment	1 year ~14 years
Transportation equipment	2~11 years
Office equipment	2~11 years
Other equipment	1 year ~15 years

Please refer to Note XXX for the property, plant and equipment for own use offered as collateral of loans.

XIII. Lease agreement

(I) Right-of-use assets

Right-of-use assets
Book value of right-of-use assets Land Machinery & equipment Depreciation expenses of right-of-use assets Land Machinery & equipment	December 31, 2023 $ 130,565 99,439 $ 230,004 2023 $ 4,398 16,717 $ 21,115	December 31, 2022
			$ 137,185 31,554 $ 168,739 2022
			$ 4,407 18,947 $ 23,354

Except for the additions and recognition of depreciation expenditure as listed above, no major sublease and impairment of the right-of-use assets of the Consolidated Company occurred in 2023 and 2022.

Please refer to Note XXX for the amount of right-of-use assets offered as collateral of loans.

(II) Lease liabilities

December 31, 2023 December 31, 2022 Book value of lease liabilities Current $ 10,438 $ 12,284

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$ 74,125

$ 3,110

Noncurrent

The range of discount rates for the lease liabilities is stated as following:

Buildings Machinery & equipment	December 31, 2023 1.68% 1.38%	December 31, 2022
		- 1.38%～3.5%

(III) Major lessee activities and terms and conditions

The Consolidated Company rented certain energy-conservation equipment and water quality monitoring systems. The lease periods were 10 years and 3 years, respectively. Upon expiration of the lease period, the lease objects would be transferred to the Consolidated Company unconditionally. Among the other things, the energy-conservation equipment lease contract provided that the lease payment should vary depending on the specific percentage of the energy-conservation amount on a monthly basis.

(IV) Other lease agreement

Other lease agreement
Short-term lease expenditure Low-value asset lease expenditure Total amount of cash (outflow) from lease		2023 $ 3,107 $ 7,456 $ 26,024)		2022
	(		(	$ 3,970 $ 11,024 $ 32,719)

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XIV. Investment property

Investment property
Balance – beginning of year Profit (loss) from changes in fair value Balance – end of period	December 31, 2023 $ 576,200 19,600 $ 595,800	December 31, 2022
		(	$ 577,900 1,700) $ 576,200

The investment property was measured at fair value on a recurring basis. The evaluation basis for the fair value thereof is stated as following:

External appraisal service	December 31, 2023 $ 595,800	December 31, 2022	December 31, 2022
			$ 576,200

Projected future cash inflow Projected future cash outflow Projected future cash inflow Discount rate	December 31, 2023 $ 858,200 262,400 $ 595,800 2.470%	December 31, 2022	December 31, 2022
			$ 843,500 267,300 $ 576,200 2.345%

The projected future cash inflow from investment property included rent revenue and deposit interest revenue less loss from idle assets. The rent income was evaluated based on the rent prevailing locally or that for any comparable object on the market, with any overestimated or underestimated comparable objects excluded, and also based on the growth rate of the future rent. The income analysis period was estimated to be five years. The deposit interest income was estimated based on one-year time deposit interest rate. The loss from idle assets was estimated based on 1.5-month rent income

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plus deposit interest income. The projected future cash outflow from investment property included the expenditures, such as land value tax, house tax, insurance premium, management expense, maintenance expense, replacement appropriation fee, depreciation expense, disposal expense and estimated land value increment tax. Such expenditures were estimated based on the current expenditure level and by taking into consideration the adjustment on the current land value announced in the future, and tax rate prescribed by house tax regulations.

The discount rate was decided based on the two-year time deposit interest rate published by Chunghwa Post Co., Ltd. plus 0.875%.

XV. Other intangible assets

Computer software

December 31, 2023 $ 58,186	December 31, 2022	December 31, 2022
		$ 42,539

Except for the amortization expenditure that was recognized, no major additions, disposals, or impairment of other intangible assets of the Consolidated Company occurred in 2023 and 2022. Amortization expense was appropriated on a straight-line basis within 1~5 useful years.

Summarization of amortization expenses by functions:

				2023		2022
		Operating costs	$	19,561	$	13,115
		Operating expenditure		1,095		593
		R&D expense		5,265		2,517
			$	25,921	$	16,225
XVI.		Other assets
			December 31, 2023		December 31, 2022
		Current
		Others	$	3,305	$	2,934
		Noncurrent
		Refundable deposit	$	15,410	$	10,858
XVII.		Borrowings
	(I)	Short-term loans
			December 31, 2023		December 31, 2022
		Secured loans(Note XXX)
		Bank loans	$	86,704	$	608,641
		Unsecured loans
		Line of credit loans		130,056	1,579,793
			$	216,760	$ 2,188,434

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Revolving bank loan interest rate was

2.29%–2.40% and 1.11%–4.48% on December 31, 2023 and 2022, respectively.
(III) Long-term loans

Long-term loans
Secured loans(Note XXX) Mega International Commercial Bank (1) KGI Bank (2) Subtotal Unsecured loans Mega International Commercial Bank (3) CTBC Bank (4) Jih Sun International Bank (5) E.SUN Bank (6) Syndicated banks including Taipei Fubon Bank (7) Syndicated banks including E. Sun Bank (8) Subtotal Less: current portion Long-term loans	December 31, 2023 $ - - - 25,000 - - - 1,440,000 - 1,465,000 - $ 1,465,000	December 31, 2022
			$ 430,000 360,000 790,000 - 200,000 300,000 100,000 700,000 1,250,000 2,550,000 - $ 3,340,000

Land and buildings were offered as collateral for the secured loans. NT$430,000 thousand of the total loans, NT$900,000 thousand, has been drawn down against a disbursement letter on a revolving basis. The loans are effective from July 8, 2022 to July 8 2025. The loans were already repaid in full earlier in December 2023. As of December 31, 2022, the effective annual interest rate was 1.8%.
Land and buildings were offered as collateral for the secured loans. NT$360,000 thousand of the total loans, NT$500,000 thousand, has been drawn down. The loans are effective from April 30, 2017 to April 30, 2024. The loaning period may be extended to January 26, 2025 before the due date. At the expiration of the 18th, 24th, and 30th months from the extension date, a credit line of NTD 100,000 thousand will be canceled, respectively; all other lines of credit will be canceled at the end of the 36th month. The loans may be drawn down on a revolving basis within three years starting from January 26, 2022, with the interest thereon payable on a monthly basis. The loans are

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repayable in a lump sum on the due date. The loans were already repaid in full earlier in December 2023. As of December 31, 2022, the effective annual interest rate was 1.849%–1.862%. The quarterly consolidated financial ratios on the loans during the effective term were subject to the following restrictions: The total of cash and cash equivalents and EBITDA (net income, income tax expense, financial costs (interest expenses), depreciation expenses and amortization expenses in the Long-term loans, current portion should stay more than 120% (inclusive).

For credit loans, NT$250,000 thousand of the total loans, NT$1,000,000 thousand, has been drawn down. The loans are effective from November 24, 2023 to November 24, 2030. The interest thereon are payable on a monthly basis. The first installment was counted upon expiration of the 24th month after the date of the first drawdown, and each installment consists of three months. The loans are repayable at the average over nine installments. As of December 31, 2023, the effective annual interest rate was 1.78%
For credit loans, NT$200,000 thousand of the total loans, NT$225,000 thousand, has been drawn down. The loans were effective from November 23, 2021 to November 23, 2023. The loaning period has been extended to July 15, 2024. From the date of borrowing, the interest should be accrued, subject to the balance of loan, at the interest rate agreed on the loan on a monthly basis. The principal should be repaid in a lump sum when due. It was paid off earlier in December 2023. As of December 31, 2022, the effective annual interest rate was 1.69%
The credit loans, totaling NT$300,000 thousand, have been drawn down in full. The loans are effective from July 20, 2022 to June 14, 2024. From the date of borrowing, the interest should be accrued, subject to the balance of loan, at the interest rate agreed on the loan on a monthly basis. The principal should be repaid in a lump sum when due. It was paid off earlier in December 2023. As of December 31, 2022, the effective annual interest rate was 1.561%
NT$100,000 thousand of the total credit loans, NT$300,000 thousand, has been drawn down against a disbursement letter on a revolving basis. The loans are effective from October 14, 2022 to October 14, 2025. The loans were already repaid in full earlier in December 2023. As of December 31, 2022, the effective annual interest rate was 1.7%.

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The syndicated loans, totaling NT$1,440,000 thousand, have been drawn down in full. The loans are effective from December 20, 2022 to December 20, 2025. The loans were drawn down on a revolving basis within 3 years with the interest thereon payable on a monthly basis. As of December 31, 2023 and 2022, the effective annual interest rate was 2.1247% and 2.0040%, respectively. The annual consolidated financial ratios on the loans during the effective term were subject to the following restrictions: The current ratio should stay more than 100%. The financial liabilities (less cash and cash equivalents) defined under the loan agreement in the net value of tangible assets should stay less than 110%. The interest coverage ratio (Earnings before interest, taxes and amortization of depreciation) should stay more than 2.5 times. The net value of tangible assets should stay more than NT$6,200,000 thousand.
The syndicated loans, totaling NT$1,250,000 thousand, have been drawn down in full on a revolving basis. The loans are effective from October 14, 2022 to February 5, 2024. The principal should be repaid in a lump sum on the due date. It was paid off earlier in December 2023. As of December 31, 2022, the effective annual interest rate was 1.817%. The restrictions imposed on the financial ratios thereof were the same as those applied to the loans from syndicated banks including Taipei Fubon Bank (6).

XVIII. Corporate bonds payable

rporate bonds payable
Domestic unsecured convertible corporate bonds – Gold Circuit Electronics 2	December 31, 2023 $ 3,393,537	December 31, 2022
			$ -

Domestic unsecured convertible bonds

On December 5, 2023, the Consolidated Company issued 40 thousand units of second domestic unsecured convertible corporate bonds in Taiwan with a coupon rate of 0% for a period of 5 years. The principal amount was NTD 4,000,000 thousand.

Other terms and conditions of issuance:

(1) Conversion period: March 6, 2024 to December 5, 2028.
(2) Conversion price: The price is NTD 223.1 per share at the time of issuance. In case the number of the Company’s issued common stocks

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increases after issuance of the convertible corporate bonds (such as cash capital increase, capital increase from earnings, capital increase from capital reserve, issuance of new shares through a merger or acquisition of shares of another company, stock split, and capital increase for participation in issuance of GDRs), the conversion price shall be adjusted based on the formula specified in the issuance terms. (No conversion was executed as of December 31, 2023.)

Call and put options of bonds:
(1) Call option upon maturity: The principal will be repaid at face value upon maturity of the bonds.
(2) Early execution of call option: During the period from the day next to the end date on which the convertible corporate bond has been issued for three months to the 40th day prior to the expiration of the issue date, if the closing price of the Consolidated Company’s common shares exceeds the current conversion price by more than 30% (inclusive) for thirty consecutive business days, the Consolidated Company may redeem part or all of the bonds at face value. During the period from the day next to the end date on which the convertible corporate bond has been issued for three months to the 40th day prior to the expiration of the issue date, if the balance of the Consolidated Company’s outstanding convertible corporate bonds is less than 10% of the initial total issue price, the Company may redeem the bonds at face value at any time.
The convertible corporate bonds include liabilities and equities, and the latter are stated in equity and presented as capital reserve – stock option. The initially recognized effective interest rate with respect to the liabilities is 3.63%.
The components of liabilities and equities of convertible corporate bonds
are as follows:

are as follows:
Issue price (less a trading cost of NTD 5,080 thousand) Component of equity (less a trading cost of NTD 1,048 thousand) Option derivatives Component of liabilities on the issuance date (less a trading cost of NTD 4,032 thousand) Interest calculated at the effective interest rate Component of liabilities	December 31, 2023
	$ 4,281,160 ( 880,452 ) ( 15,769) 3,384,939 8,598 $ 3,393,537

289

290

Changes in option derivatives in 2023 are as follows:

	Changes in option derivatives in	2023 are as follows:
XIX. XX. XXI.	Date of issue Loss from changes in fair value Balance – end of period Accounts payable Accounts payable Generated from operations Other liabilities Current Other payables Salary and bonus payable Repairs and maintenance payable Processing fees payable Equipment accounts payable Consumables payable Commission payable Pension fund payable Interest payable Damages payable Others Other liabilities Others Noncurrent Other liabilities Guarantee deposit received Provision for liabilities Current Sales returns and allowances	December 31, 2023 $ 6,021,443 December 31, 2023 $ 1,251,530 325,213 344,478 426,379 58,659 127,682 8,483 4,124 157,736 407,530 $ 3,111,814 $ 177,874 $ 117,880 December 31, 2023 $ 212,729		2023
			$ 15,769 6,091 $ 21,860 December 31, 2022
			$ 5,660,421 December 31, 2022
			$ 1,176,713 315,354 194,389 383,607 54,535 150,561 10,363 10,164 159,041 423,495 $ 2,878,042 $ 197,552 $ 105,010 December 31, 2022
				$ 252,214

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XXII. Post-retirement benefit plans

(I) Defined contribution plan

The Consolidated Company applied the retirement system under the “Labor Pension Act,” which was identified as the defined contribution plan managed by the government. Under the plan, the Company contributed 6% of each employee’s salary to the personal account maintained at the Bureau of Labor Insurance on a monthly basis.

(II) Defined benefit plan

The pension system implemented by the Consolidated Company based on the “Labor Standards Act” is a defined benefit plan managed by the government. The pension benefits a participant receives were determined based on an employee’s number of years of service and average compensation for the six-month period prior to retirement. Those companies have an amount equivalent to 2% of the total monthly salary of employees appropriated and deposited in the specific account with Bank of Taiwan in the name of Labor Pension Reserve Committee. Before the end of the fiscal year, if the pension account balance is insufficient to pay for the employees expecting to retire in the following year, the spread amount should be deposited in a lump sum before the end of March in the following year. The special account has been commissioned to the Bureau of Labor Fund of the Ministry of Labor Affairs for management. The Consolidated Company exercised no influence on the right of the Bureau in its investment management strategy.

The amount of defined benefit plan recognized in the consolidated balance sheet is shown below:

is shown below:
Present value of the defined benefit obligations Fair value of the planned assets Shortfall in contribution Limit of assets Net defined benefit liabilities	December 31, 2023 $ 371,901 (282,681) 89,220 - $ 89,220	December 31, 2022
	(	(	$ 340,553 267,452) 73,101 - $ 73,101

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The net defined benefit liabilities show the following changes:

Balance as of January 1, 2023 Service cost Service cost in current period Interest expenses (revenue) Recognized into profit and/or loss Re-measurement amount ROE on planned assets (except the amount of net interest) Actuarial losses －changes in financial assumptions －adjustment through experience Recognized into other comprehensive income Contributed by employer Benefits paid Balance as of December 31, 2023 Balance as of January 1, 2022 Service cost Service cost in current period Interest expenses (revenue) Recognized into profit and/or loss Re-measurement amount ROE on planned assets (except the amount of net interest) Actuarial losses －changes in financial assumptions －adjustment through experience Recognized into other comprehensive income Contributed by employer Benefits paid Balance as of December 31, 2022	Present value of the defined benefit obligations $ 340,553 599 5,108 5,707 - 9,051 33,532 42,583 - ( 16,942) $ 371,901 Present value of the defined benefit obligations $ 417,249 1,006 2,086 3,092 $ - ( 37,258 ) ( 27,946) ( 65,204) - ( 14,584) $ 340,553	Fair value of the planned assets ($ 267,452) - ( 4,204) ( 4,204) ( 1,393 ) - - ( 1,393) ( 26,574 ) 16,942 ($ 282,681) Fair value of the planned assets ($ 216,569) - ( 1,148) ( 1,148) ( $ 16,859 ) - - ( 16,859) ( 47,460 ) 14,584 ($ 267,452)		Net defined benefit liabilities
			( (	$ 73,101 599 904 1,503 1,393 ) 9,051 33,532 41,190 26,574 ) - $ 89,220 Net defined benefit liabilities
	( ( ( (	( ( ( ( ( ( (	( ( ( ( (	$ 200,680 1,006 938 1,944 $ 16,859 ) 37,258 ) 27,946) 82,063) 47,460 ) - $ 73,101

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The recognized loss of defined benefit plans by function is summarized below:

Summarization by functions Operating costs Promotional expenditure Operating expenditure R&D expense		2023 $ 1,050 84 130 239 $ 1,503		2022
				$ 1,387 107 165 285 $ 1,944

The pension fund system of the Consolidated Company was exposed to the following risks due to the “Labor Standards Act”:

Investment risk: The Bureau of Labor Fund of the Ministry of Labor Affairs uses the labor pension fund for investment in domestic and foreign equity securities and debt securities, and as bank deposits through proprietary trade or commissioned third parties. However, the amount attributable to the planned asset of the business combination shall not fall below the interest rate offered by the banks in the regions or countries of investment for 2-year time deposit as return.
Interest rate risk: The decrease of the interest rate of government bonds will cause the present value of the defined benefit obligations to go up; however, the return on the debt of the plan assets will go up too; therefore, they will mutually offset the impact on the net defined benefit liabilities.
Salary risk: The calculation of the present value of defined benefit obligation is based on the salaries of the members in the plan of the future. As such, an increase of the salaries of the members of the plan is bound to increase the present value of defined benefit obligation.

The present value of the Consolidated Company’s defined benefit liabilities was based on the actuarial calculation of the actuary and the major hypotheses as of the evaluation day are stated as following:

Discount rate Anticipated increase in salaries	December 31, 2023 1.25% 2.000%	December 31, 2022
		1.5% 2.000%

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Discount rate Increase by 0.25% Decrease by 0.25% Anticipated increase in salaries Increase by 0.25% Decrease by 0.25%	December 31, 2023 ($ 9,051) $ 9,384 $ 9,142 ($ 8,863)	December 31, 2022	December 31, 2022
	( (	( (	$ 8,467) $ 8,791 $ 8,578 $ 8,303)

Amount projected for appropriation in 1 year Average maturity of defined benefit obligation	December 31, 2023 $ 26,181 9.9 years	December 31, 2022	December 31, 2022
			$ 25,688 10.1 years

XXIII. Equity

(I)	Share capital
	Common stock

Common stock
Authorized shares (thousand) Authorized capital The number of issued and outstanding shares with paid-in capital (thousand shares) Issued and outstanding share capital	December 31, 2023 750,000 $ 7,500,000 491,839 $ 4,918,391	December 31, 2022
			750,000 $ 7,500,000 491,839 $ 4,918,391

The stocks retained for employee stock warrants from the authorized capital stocks totaled 40,000 thousand shares.

In order to adjust the capital structure and enhance the return on shareholders’ equity, the Company’s annual shareholders’ meeting on June 8, 2022 resolved to

reduce the capital, return the share price of NT$546,488 thousand in cash, and revoke 54,649 thousand shares. The capital reduction ratio was 10%. After the capital reduction, the paid-in capital was NT$4,918,391 thousand with 491,839 thousand shares paid-in. The above capital decrease case was approved by the FSC and became effective on July 12, 2022 under Tai-Zheng-Shang-Zhi No. 1111803141. The

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Board of Directors resolved to set July 15, 2022 as the record date for the capital decrease. The change registration was completed on August 4, 2022. The base date of stock swap upon capital decrease was September 16, 2022.

(II) Capital reserve

Capital reserve
	December 31, 2023	December 31, 2022
It can be applied for making
losses, cash distribution, or
capitalization(1)
Premium in stock issuance	$ 968,615	$ 968,615
Transaction of treasury stocks	115,437	97,407
Corporate bond conversion
premium	141,359	141,359
Coupon rate for release of
corporate bond	11,715	11,715
Donated assets	71	71
Not to be used for any purpose
(2)
Stock options	880,452	-
	$ 2,117,649	$ 1,219,167

(1) Such capital reserve can be used to make up for losses, and, when the Company suffers no loss, can be applied for cash distribution or capitalization. However, it is limited to a certain percentage of the annual paid-in capital for the purpose of capitalization.
(2) Such capital reserve is generated upon issuance of convertible corporate bonds, and the adjustment for the subsequent lapse.
(III) Retained earnings and dividend policy

The Company’s Articles of Incorporation were amended at the shareholders’ meeting on June 8, 2022. According to the earnings distribution policy under the Articles of Incorporation, if there is a surplus after account settlement of the fiscal year, the Company shall pay applicable taxes and cover loss carried forward, followed by the allocation of 10% of the remainder as legal reserve, and appropriate special reserve or reverse special reserve. If there is still a balance, it will be pooled up with the undistributed earnings carried forward from previous years for distribution as shareholder dividend under a motion proposed by the Board subject to the final approval of a general shareholders’ meeting. Please refer to Note XXIV (VIII) “Remuneration to Employees and Directors” for the policy for distribution of remuneration to the employees and directors under the Articles of Incorporation.

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The Company’s dividend policy takes the long-term business growth and investment projects into consideration, and also attends to a robust financial structure. The Board of Directors is required to propose a motion for allocation of earnings. The dividends will be distributed in the form of stock dividend or cash dividend adequate subject to the future funding needs and level of dilution of capital stocks. Among other things, the cash dividend shall be no less than 10% of the total distribution for the current year.

The Company’s 2022 and 2021 earnings distribution is as follows:

Legal reserve Cash dividends Cash dividend per share (NTD)		2022 $ 463,353 $ 1,721,436 $ 3.5		2021
				$ 296,218 $ 1,202,274 $ 2.2

The distribution of the above cash dividends was adopted by the general shareholders’ meetings held on June 14, 2023 and June 8, 2022, respectively.

The Company’s 2023 earnings distribution proposed by the Board of Directors on March 12, 2024 is as follows:

on March 12, 2024 is as follows:
Legal reserve Cash dividends Cash dividend per share (NTD)		2023
		$ 349,564 $ 1,721,436 $ 3.5

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(IV) Other equity items

Exchange differences on translation of foreign financial statements

Balance – beginning of year Those yielded in the current period Translation differences of foreign operations Other comprehensive income for current period Balance – end of period	2023 ( $ 8,435 ) (165,579) (165,579) ($ 174,014)	2022
		( $ 27,260 ) 18,825 18,825 ($ 8,435)

Unrealized gain/loss on valuation of financial assets at fair value through other comprehensive income

comprehensive income
Balance – beginning of year Balance – end of period		2023 $ 10,570) $ 10,570)		2022
	( (		( (	$ 10,570) $ 10,570)

Property revaluation surplus

3. Property revaluation surplus
		2023		2022
Balance – beginning of
year		$ 295,781		$ 295,781
Balance – end of period		$ 295,781		$ 295,781
Treasury stocks
	The stocks of
	parent company
	held by the
	subsidiaries		Total (thousand
Causes of Redemption	(thousand shares)			shares)
Number of shares as of January
1, 2022		5,724		5,724
Decrease in current period	(	573)	(	573)
Number of shares as of
December 31, 2022		5,151		5,151
Number of shares as of January
1, 2023		5,151		5,151
Number of shares as of
December 31, 2023		5,151		5,151

(V) Treasury stocks

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Information on shares of the Company held by the subsidiaries as of the balance sheet date is provided as follows:

Name of subsidiary December 31, 2023 King Hsiang Investment Co. December 31, 2022 King Hsiang Investment Co.	Shares (thousand) 5,151 5,151		Book value $ 1,123,000 $ 447,139		Market price
					$ 1,123,000 $ 447,139

XXIV. Net profit from continuing operations

(I) Other gains and (expenses and losses) - net

Other gains Other expenses and losses		2023 $ 187,998 151,146) $ 36,852		2022
	(		(	$ 107,611 93,695) $ 13,916

(II) Interest revenue

terest revenue
Bank deposit Others		2023 $ 196,348 121 $ 196,469		2022
				$ 58,442 4,384 $ 62,826

(III) Other revenue

Other revenue
Lease income Others		2023 $ 11,495 95,728 $ 107,223		2022
				$ 11,926 81,682 $ 93,608

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(III) Other gains and (losses)

(III) Other gains and (losses)
2023 2022 Profit (loss) from financial assets and financial liabilities Financial assets and financial liabilities mandatorily measured at fair value through profit or loss ( $ 189,368 ) ( $ 436,596 ) Financial liabilities held for trading ( 6,091 ) - Net gain from foreign currency exchange 109,902 761,549 Loss on disposal of property, plant and equipment ( 28,716 ) ( 34,633 ) Gain (loss) from fair value adjustment of investment property 19,600 ( 1,700 ) Others ( 9,203) ( 3,118) ($ 103,876) $ 285,502 (V) Financial cost 2023 2022 Bank loan interest $ 107,483 $ 88,928 Interest on corporate bonds 8,598 - Interest of lease liabilities 391 338 Other interest expenses 3,435 2,021 Less: The amount of the cost of assets meeting requirements ( 1,931) ( 972) $ 117,976 $ 90,315 The information related to capitalization of interest is stated as following: 2023 2022 Amount of capitalization of interest $ 1,931 $ 972 Interest rate of capitalization of interest 1.92% 1.37%	2022
	( $ 436,596 ) - 761,549 ( 34,633 ) ( 1,700 ) ( 3,118) $ 285,502 2022
		$ 972 1.37%

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(VI) Depreciation and amortization

Depreciation and amortization
Summarization of the depreciation expenses by functions Operating costs Operating expenses Summarization of the amortization expenses by functions Operating costs Operating expenses		2023 $ 820,643 120,341 $ 940,984 $ 19,561 6,360 $ 25,921		2022
				$ 743,111 115,046 $ 858,157 $ 13,115 3,110 $ 16,225

(VII) Employee benefit expenses

Employee benefit expenses
Post-retirement benefits (Note XXII) Defined contribution plan Defined benefit plan Resignation benefits Other employee benefits Total of employee benefits expenses Summarization by functions Operating costs Operating expenses		2023 $ 70,497 1,503 72,000 129 5,681,432 $ 5,753,561 $ 4,294,706 1,458,856 $ 5,753,562		2022
				$ 70,056 1,944 72,000 2,131 5,695,964 $ 5,770,095 $ 4,394,789 1,375,306 $ 5,770,095

(VIII) Remuneration to employees and directors

According to the Articles of Incorporation, no less than 5–10% and no more than 1% of the net profit before tax before deduction of the remuneration to employees and directors for the current year should be distributed to employees and directors, respectively. The Board of Directors decided on the 2023 and 2022 remuneration to employees and directors on March 12, 2024 and March 9, 2023, respectively, as follows:

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Estimated ratio Remuneration to employees Remuneration to directors Amount Remuneration to employees Remuneration to directors		2023 6.39% 0.92% 2023 Cash $ 298,000 $ 43,000		2022
				5.96% 0.86% 2022
				Cash
				$ 334,000 $ 48,000

If there is still change to the value after the date when the annual consolidated financial statement is approved and released, it is handled as changes in accounting estimates and will be adjusted and booked in the following year.

For information on the remunerations to employees and that to directors decided by the Board of Directors, please visit the Market Observation Post System of Taiwan Stock Exchange.

(IX) Profit (loss) from foreign currency exchange

Total profit of exchange in foreign currencies Total loss of exchange in foreign currencies Net profit (loss)		2023 $ 1,421,389 1,311,487) $ 109,902		2022
	(		(	$ 2,289,365 1,527,816) $ 761,549

XXV. Income tax of continued operations

(I) Income tax recognized in profit or loss

Main components of the income tax expense are as follows:

Income tax for the year Those incurred for the current term Additional tax levied on undistributed earnings Adjustment of previous year(s) Others Deferred income tax Those incurred for the current term The income tax expenses recognized into profit and/or loss	2023 $ 1,411,202 102,492 ( 81,570 ) - 1,432,124 257,191 257,191 $ 1,689,315		2022
			$ 1,374,441 78,230 29,977 2,988 1,485,636 334,822 334,822 $ 1,820,458

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The accounting income and income tax expenses are adjusted below:

		2023		2022
Net profit before tax from
continuing operation		$ 5,217,907		$ 6,388,333
Income tax expenses for net
profit before tax calculated
at the statutory tax rate		$ 1,797,888		$ 2,203,789
Expenses and losses which
could not be reduced from
tax		4,217		3,972
Income exempted from income
tax	(	3,928 )		-
Additional tax levied on
undistributed earnings		102,492		78,230
Land value increment tax of
investment property		1,325	(	89 )
Reversal of unrecognized
deductible temporary
difference for current period	(	108,318 )	(	495,544 )
Unrecognized loss
carryforwards drawn in the
current period	(	22,791 )	(	2,865 )
The income tax expenses of
previous year(s) adjusted in
the present year	(	81,570 )		29,977
Others		-		2,988
The income tax expenses
recognized into profit and/or
loss		$ 1,689,315		$ 1,820,458

The Consolidated Company should apply the tax rate 20% applicable to entities

under the ROC Income Tax Act. The tax rate, 25%, should be applied to the subsidiaries in Mainland China, while the income tax generated in any other jurisdictions should be calculated at the tax rates applicable within the jurisdictions.

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(II) Income tax recognized into other comprehensive income

Deferred income tax Those yielded in the current period - Translation of foreign operations －Defined benefit plan re-measurement amount Income tax recognized into other comprehensive income	2023 ( $ 41,396 ) ( 8,238) ($ 49,634 )	2022
		( $ 2,109 ) 16,413 $ 14,304

(III) Deferred income tax assets and liabilities

The deferred income tax assets and liabilities show the following changes:

2023

2023
Deferred income tax assets Temporary difference Loss on inventory devaluation Exchange gains or losses Financial liabilities at fair value through profit or loss Provision for liabilities Defined benefit retirement plan Loss in impairment in financial assets Tax difference between fixed assets and idle assets Provision of compensation loss Others Deferred income tax liabilities Temporary difference Portions of profits or losses of subsidiaries, affiliates, and joint ventures recognized adopting the equity method Financial assets at fair value through profit or loss Defined benefit retirement plan Tax difference between fixed assets and idle assets Investment property Others	Balance - beginning of year $ 49,401 6,588 982 22,030 - 4,500 440 33,112 59,200 $ 176,253 $ 54,545 - 3,176 63 83,333 197,516 $ 338,633	Recognized into profit and/or loss $ 31,805 18,750 ( 982 ) 6,147 ( 8,190) - 1,091 ( 247 ) 13,057 $ 61,431 $ 278,549 7,451 ( 3,176 ) ( 63 ) 1,325 32,308 $ 316,394	Recognized into other comprehensiv e income $ - - - - 8,238 - - - 41,396 $ 49,634 $ - - - - - - $ -	Balance - end of year
					$ 81,206 25,338 - 28,177 48 4,500 1,531 32,865 113,653 $ 287,318 $ 333,094 7,451 - - 84,658 229,824 $ 655,027

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2022

2022
Deferred income tax assets Temporary difference Portions of profits or losses of subsidiaries, affiliates, and joint ventures recognized adopting the equity method Loss on inventory devaluation Exchange gains or losses Financial liabilities at fair value through profit or loss Provision for liabilities Defined benefit retirement plan Loss in impairment in financial assets Tax difference between fixed assets and idle assets Provision of compensation loss Others Deferred income tax liabilities Temporary difference Portions of profits or losses of subsidiaries, affiliates, and joint ventures recognized adopting the equity method Financial assets at fair value through profit or loss Defined benefit retirement plan Tax difference between fixed assets and idle assets Investment property Others	Balance - beginning of year $ 123,441 22,091 1,162 - 35,717 27,999 4,500 98 34,761 48,463 $ 298,232 $ - 1,839 - 884 83,422 49,650 $ 135,795	Recognized into profit and/or loss ( $ 123,441 ) 27,310 5,426 982 ( 13,687 ) - - 342 ( 1,649 ) 8,628 ($ 96,089) $ 54,545 ( 1,839 ) 14,762 ( 821 ) ( 89 ) 147,866 $ 214,424	Recognized into other comprehensiv e income $ - - - - - ( 27,999 ) - - - 2,109 ($ 25,890) $ - - ( 11,586 ) - - - ($ 11,586)	Balance - end of year
					$ - 49,401 6,588 982 22,030 - 4,500 440 33,112 59,200 $ 176,253 $ 54,545 - 3,176 63 83,333 197,516 $ 338,633

(IV) The deductible temporary differences and unused loss credit of the deferred income

tax assets that are not recognized in the consolidated balance sheet

Deductible temporary differences Overseas subsidiaries	December 31, 2023 $ 2,660,000	December 31, 2022	December 31, 2022
			$ 2,800,000

(V) Summarized amount of temporary differences related to investment but not recognized as deferred income tax liabilities

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(VI) Authorization of income tax

Except for 2020, the tax collection authorities had approved all the profit-seeking enterprise income tax returns of the Company as of 2021. The tax collection authorities have approved all the profit-seeking enterprise income tax returns of King Hsiang Investment Company as of 2021.

XXVI. Earnings per share

Unit: NTD per share

Basic EPS Diluted earnings per share		2023 $ 7.25 $ 7.22		2022
				$ 8.86 $ 8.78

The weighted average number of common shares used to calculate the earnings in the earnings per share (EPS) are enumerated below:

Net profit of the year

Net profit of the year
The net profit of owner attributed to the Company Impacts of potential common stock with diluting effects: Interest after tax of convertible corporate bonds Net profit for calculating the basic and diluted earnings per share Number of shares The weighted average number of common shares to be used to calculate basic earnings per share (EPS) Impacts of potential common stock with diluting effects: Remuneration to employees Convertible corporate bonds The weighted average number of common shares for calculating the diluted earnings per share (EPS)		2023 $ 3,528,592 6,878 $ 3,535,470 2023 486,688 2,020 1,277 489,985

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If the Company can choose to issue employee remunerations in the form of shares or cash, in the calculation of diluted earnings per share, it is assumed that issuance of shares will be adopted for employee remunerations and the weighted average circulating shares are included in the calculation when the said common stock exercises the diluting effect in order to calculate the diluted earnings per share. When the diluted earnings per share are calculated prior to issuance of shares as employee remunerations as determined in the following year, the diluting effect from the said potential common stock shall continue to be taken into consideration, too.

XXVII. Capital risk management

The Consolidated Company managed their capitals to assure that, insofar as various entities within the Group continued operations, the returns to shareholders could be maximized through optimal balances in liabilities and equity.

The Consolidated Company’s capital structure consisted of their net debts (namely the loans less cash and cash equivalents) and equity (namely the capital stock, additional paid-in capital, retained earnings and other equity less treasury stocks).

It was not necessary for the Consolidated Company to comply with any other external capital requirements.

XXVIII. Financial instruments

(I) Fair value - financial instruments that are not measured at fair value

The management of the Consolidated Company believed that the financial assets and financial liabilities not measured at fair value that was close to the fair value thereof. As of December 31, 2023 and 2022, there was no significant difference between the book value and fair value.

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(II) Information on fair value – financial instruments measured at fair value on a recurring basis

1.	Fair value hierarchy December 31, 2023 Financial assets at fair value through profit or loss Derivative financial instruments Non-derivative financial instruments －TWSE/TPEx-listed and emerging stocks Subtotal Financial liabilities at fair value through profit or loss Derivative financial instruments December 31, 2022 Financial assets at fair value through profit or loss Derivative financial instruments Non-derivative financial instruments －TWSE/TPEx-listed and emerging stocks Subtotal Financial liabilities at fair value through profit or loss Derivative financial instruments		Degree I $ - 2,420 $ 2,420 $ - e g r e e I $ - 3,136 $ 3,136 $ -		Degree II $ 77,017 - $ 77,017 $ 21,860 e g r e e I I $ 40,166 - $ 40,166 $ 4,908		Total
		D		D		T	$ 77,017 2,420 $ 79,437 $ 21,860 o t a l
							$ 40,166 3,136 $ 43,302 $ 4,908

There was no transfer between fair value measurements Degree 1 and Degree 2 in 2023 and 2022.

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Evaluation techniques and an input value of Degree 2 fair value measurement

Categories of financial
instruments
Derivative financial
instruments - Forward
foreign exchange
contracts & FX swaps
contracts
Derivatives – Convertible
corporate bond
conversion option

Evaluation techniques and input values

Discounted cash flow approach: Future cash
flows are estimated based on observable
forward exchange rates and contractual
forward exchange rates, discounted at a rate
that reflects the credit risk of various trading
counterparts.
The binary tree-based convertible bond
valuation model is adopted to estimate the
bond value and the call option value based
on the stock price volatility at the end of the
period, the risk-free interest rate, the risk
discount rate, and the liquidity risk.

(III) Categories of financial instruments

Categories of financial instruments
Financial assets At fair value through profit or loss At fair value through profit or loss compulsorily Measured at amortized cost (Note 1) Financial liabilities At fair value through profit or loss At fair value through profit or loss compulsorily Measured at amortized cost (Note 2)	December 31, 2023 $ 79,437 18,656,508 21,860 14,326,450	December 31, 2022
		$ 43,302 16,855,084 4,908 14,172,023

Note 1: The balances included the financial assets at amortized costs, such as cash & cash equivalents, time deposit with initial maturity date more than three months away, notes receivable, accounts receivable, other receivables and refundable deposits.

Note 2: The balances included the financial liabilities measured at amortized costs, such as short-term loans, notes and accounts payable, other payables, long-term loans (including those due within a year), long-term notes payable, corporate bonds payable, and guarantee deposits received.

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(IV) Objectives and policies of financial risk management

The Consolidated Company manages foreign currency exchange rate risk, interest rate risk, equity instrument price risk, credit risk and liquidity risk to reduce the potential adverse effects of market uncertainty on the financial performance of the Company. The Company’s significant financial plans are reviewed by the Audit Committee and/or the Board of Directors in accordance with relevant regulations and internal control systems. The Company strictly abides by relevant financial standards for overall financial risk management and division of authority when executing financial plans.

The Consolidated Company hedged against the exposure through derivative financial instruments, in order to mitigate the effect posed by such risks. The application of derivative financial instruments was governed by the policies passed by the Consolidated Company’s board of directors, as the written principles for application of foreign risk, interest risk, credit risk, derivative financial instruments and non-derivative financial instruments and residual current fund. The internal auditors kept rechecking the compliance with the policies and limit of exposure. The Consolidated Company never engaged in transactions of financial instruments (including derivative financial instruments) for the purpose of any speculative operations.

1. Market risk

The major financial risks incurred by operating activities upon the Consolidated Company included the risk of changes in foreign exchange rate (see (1) below) and risk of changes in interest rate (see (2) below). The Consolidated Company is engaged in various transactions of derivative financial instruments to manage the foreign exchange and interest rate risks to be borne by them, including the hedge against the foreign exchange risk arising from export sales with forward foreign exchange and FX swaps contracts.

The Consolidated Company’s exposure to the market risk over related financial instruments and the management and measurement methods adopted by the Consolidated Company with respect to the risk remained unchanged.

(1) Foreign exchange rate risk

Several subsidiaries of the Company engaged in foreign currency-denominated sales and purchases, which exposed the Consolidated Company the risk of foreign exchange rate changes

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therefor. About 90.56% of the Consolidated Company’s sales were not denominated in the functional currency adopted by the group entity engaged in the relevant transaction. About 34.41% of the costs of goods sold were not denominated in the functional currency adopted by the group entity engaged in the relevant transaction. Insofar as it is permitted by policies, the Consolidated Company utilized forward foreign exchange contracts to help manage the risk.

For the book value of the Consolidated Company’s non-functional currency-denominated monetary assets and liabilities (including the non-functional currency-denominated monetary items already written off in the consolidated financial statements), please see Note XXXII. Sensitivity analysis

The Consolidated Company were primarily exposed to the fluctuation in foreign exchange rates in USD and JPY.

The following table details the Consolidated Company’s sensitivity analysis in the case of the increase or decrease of 2% in functional currency against the relevant foreign currency. 2% represents the sensitivity ratio applied by the Consolidated Company when the foreign exchange rate risk is reported to the management within the Group, and also the management’s evaluation on reasonable changes of the foreign exchange rate. The sensitivity analysis included only outstanding foreign currency-denominated monetary items and forward foreign exchange contracts designated to hedge against cash flows, and their translation at the end of the year was adjusted by changes in exchange rates by 2%. The positive figures in the following table indicate the amount decreased for the net profit before tax when NTD against the related currencies appreciates 2%; when NTD against the related currencies depreciates 2%, the effects to the net profit before tax will be negative at the same amount.

Effect of USD 2023 2022 Loss $ 194,691 (i) $ 203,627 (i)

(i) Primarily as a result of the Consolidated Company’s receivables, payables and loans which were denominated in USD and still

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outstanding on the balance sheet date, without hedging against cash flows.

The Consolidated Company’s sensitivity to exchange rates declined in the current period, primarily as a result of the decrease in the accounts receivable denominated in USD of subsidiaries that led to the decrease in balance of net assets of the Consolidated Company denominated in USD. (2) Interest rate risk

The interest rate risk arose as a result of the loans bearing interest accruing at fixed interest rate and floating interest rate borrowed by the Consolidated Company. The Consolidated Company maintains an adequate combination of fixed and floating interest rates to manage the interest rate risk.

The book values of the Consolidated Company’s financial assets and financial liabilities with exposure to interest rates on the balance sheet date are stated as following:

date are stated as following:
With fair value interest rate risk －Financial liabilities With cash flow interest rate risk －Financial assets －Financial liabilities	December 31, 2023 $ 84,563 7,797,515 1,681,760	December 31, 2022
		$ 15,394 6,019,077 5,528,434

Sensitivity analysis

The following analyses of sensitivity were determined based on the interest rate risk exposure if derivative and non-derivative financial instruments on the balance sheet dates. For liabilities at floating rate, the analysis was prepared under the assumption that the amount of the liabilities outstanding on the balance sheet date was outstanding during the reporting period. 50 base points mean the interest rate change ratio applied by the Group when it reported interest rates to the management, and also the management’s evaluation on reasonable changes of the interest rate.

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If the interest rate increases/decreases by 50 base points and all the other variables remain unchanged, the Consolidated Company’s pre-tax net profit would increase by NT$30,156 thousand and NT$2,376 thousand in 2023 and 2022, respectively, primarily as a result of the Consolidated Company’s exposure to the risk of changes in interest rates for demand deposits and loans.

2. Credit risk

The credit risk denotes the risk that the Consolidated Company might incur a loss when the trading counterparts default the obligations under the contracts. As of the balance sheet date, the top credit risk the Consolidated Company might incur in financial losses due to failure by the counterparts in failure in performance of the obligations and the Consolidated Company’s provision of financial guarantees primarily come from notes the book amount of notes and accounts receivable recognized in the consolidated balance sheet. Operation-related credit risk

The outstanding accounts receivable of the Consolidated Company are mainly from customers around the world, and most of them are not provided as collaterals or credit guarantees. Although the Company has procedures in place to monitor and reduce the credit risk of accounts receivable, there is no guarantee that such procedures can completely prevent the loss caused by the credit risk. Such credit risk will increase when economic conditions deteriorate. As of December 31, 2023 and 2022, the balance of accounts receivable of the top ten customers accounted for 81% and 74% of the balance of the Company’s accounts receivable, respectively; the credit risk concentration of the remaining accounts receivable is relatively insignificant.

3.

Liquidity risk

The Consolidated Company managed and maintained sufficient cash and cash equivalent to support the Group’s business operations and minimize the

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impact of changes in cash flow. The Consolidated Company’s management closely watches the usage of the financing credit lines in banks and assures faithful compliance of the terms and conditions set forth under the loan contracts.

To the Consolidated Company, bank loans functioned as a key source of liquidity. Please refer to Note (2) “Facility” for the Consolidated Company’s unused facility.

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

Non-derivative financial liabilities remaining contract maturity analysis was prepared in accordance with the earliest payment date expected of the Consolidated Company and the undiscounted cash flows (including principal and estimated interest) of financial liabilities. Therefore, the Consolidated Company may be required to immediately repay the bank loan that is illustrated in the following table without considering the probability that the bank may immediately exercise such right. The other non-derivative financial liabilities maturity analysis was prepared on the agreed repayment date.

The undiscounted interest for the cash flow of interest payable at floating interest rate derived from the bond yield curves at the balance sheet date.

December 31, 2023

Liabilities without interest Lease liabilities Floating interest rate instruments Fixed interest rate instruments	Repayment on demand or less than 1 months	Repayment on demand or less than 1 months		1 month ~ 3 months	3 months ~ 1 year	3 months ~ 1 year	1 year~5 years	1 year~5 years		Over 5 years
		$ 2,097,977 1,168 - - $ 2,099,145		$ 3,150,786 2,342 - - $ 3,153,128		$ 2,425,135 6,928 216,761 - $ 2,648,824		$ 196,919 32,548 - 1,445,556 $ 1,675,023		$ - 41,577 - 19,444 $ 61,021

The other information about lease liabilities maturity analysis is stated as following:

stated as following:	lowing:
Less than 1 year 1 Lease liabilities$ 10,438 $ December 31, 2022 Repayment on demand or less than 1 months	Less than 1 year	1	year~5 years	5 years~10 years	10 years~15 years	15 years~20 years
		$

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Liabilities without interest $ 759,650 $ 4,065,705 $ 1,986,029 $ 537,736 $ - Lease liabilities 1,472 2,951 7,861 3,110 - Floating interest rate instruments 573,597 607,770 1,007,067 - - Fixed interest rate instruments - - - 3,340,000 - $ 1,334,719 $ 4,676,426 $ 3,000,957 $ 3,880,846 $ -

The other information about lease liabilities maturity analysis is stated as following:

Less than 1 1 year~5 5 years~10 10 years~15 15 years~20 Over 20 year years years years years years Lease liabilities $ 12,284 $ 3,110 $ - $ - $ - $ -

(2) Facility December 31, 2023 December 31, 2022 Unsecured bank overdraft (to be reviewed annually) － Already drawn down $ 1,595,056 $ 4,129,795 － Not yet drawn down 9,844,718 6,715,144 $ 11,439,774 $ 10,844,939 Secured bank overdraft － Already drawn down $ 86,704 $ 1,398,641 － Not yet drawn down 264,566 1,561,692 $ 351,270 $ 2,960,333

XXIX. Transactions with related parties

Upon consolidation, the transactions, balances in accounts, gains, expenses and losses existing between the Company and its subsidiaries (as the Company's related parties) were written out in full and, therefore, are not disclosed in this Note.

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Remuneration to the management

Remuneration to the management
Short-term employee benefits Post-employment benefits		2023 $ 87,941 1,510 $ 89,451		2022
				$ 90,911 1,512 $ 92,423

The salaries and remunerations to directors and other key management were determined by the Salary Committee in accordance with the personal performances and trends in the markets:

XXX. Pledged assets

The following assets were provided as collateral for financing loans and for the tariffs of imported raw materials and supplies:

Land Building - net Right-of-use assets	December 31, 2023 $ 648,300 420,426 60,747 $ 1,129,473	December 31, 2022	December 31, 2022
			$ 648,300 545,072 117,300 $ 1,310,672

XXXI. Material contingencies

The amount of unused letters of credit issued by the Consolidated Company for procurement of raw materials and machinery & equipment are enumerated as following (expressed in NTD thousand):

(expressed in NTD thousand):
Currency type JPY USD EUR	December 31, 2023 $ 296 33,900 894	December 31, 2022
		$ 29 9,740 177

XXXII. Information on financial assets and liabilities in foreign currencies with significant

impact

The following information was summarized according to the foreign currencies other than the functional currencies of the Consolidated Company. The exchange rates disclosed was used to translate the foreign currencies into the functional currency. Financial assets and liabilities in foreign currencies with significant influence are summarized as following:

316

December 31, 2023

Foreign currency assets Monetary items USD USD USD RMB Euro Euro JPY THB Foreign currency liabilities Monetary items USD USD RMB Euro Euro JPY JPY	Foreign currency $ 386,371 204,329 8,812 2,726 1,470 2,235 36,000 2 267,188 6,476 366 2,424 510 33,900 36,000	Exchange rate 30.705 (USD:NTD) 6.9646 (USD:CNY) 34.223 (USD:THB) 4.335 (CNY:NTD) 33.98 (EUR:NTD) 7.423 (EUR:RMB) 0.2173 (JPY:NTD) 0.9017 (THB:NTD) 30.705 (USD:NTD) 6.9646 (USD:CNY) 4.335 (CNY:NTD) 33.98 (EUR:NTD) 7.4229 (EUR:RMB) 0.2173 (JPY:NTD) 0.0524 (JPY:CNY)		Book value
				$ 11,863,522 6,273,922 270,572 11,795 49,951 75,979 7,823 2 $ 18,553,566 8,204,008 198,846 1,584 82,368 17,330 7,366 7,823 $ 8,519,325

December 31, 2022

Foreign currency assets Monetary items USD USD RMB Euro Euro JPY	Foreign currency $ 415,211 254,661 3,513 887 1,954 64,400	Exchange rate 30.71 (USD:NTD) 6.9646 (USD:CNY) 4.408 (CNY:NTD) 32.72 (EUR:NTD) 7.4229 (EUR:RMB) 0.2324 (JPY:NTD)		Book value
				$ 12,751,130 7,820,639 15,485 29,023 63,935 14,967 $ 20,695,179

317

December 31, 2022

Foreign currency liabilities Monetary items USD USD RMB Euro JPY JPY	Foreign currency 266,420 71,919 22 2,302 243,860 64,400	Exchange rate 30.71 (USD:NTD) 6.9646 (USD:CNY) 4.408 (CNY:NTD) 32.72 (EUR:NTD) 0.2324 (JPY:NTD) 0.0524 (JPY:CNY)		Book value
				$ 8,181,758 2,208,632 97 75,321 56,673 14,967 $ 10,537,448

XXXIII. Disclosures in the Notes

(I) Information related to material transactions and (II) information related to reinvested enterprises:
Lending of funds to others: Attachment 7
Endorsement and guarantee to others: Attachment 1.
Marketable securities – end (exclusive of investments in subsidiaries, affiliates, and joint ventures): Attachment 2 and 8.
Cumulative amount of the same marketable security purchased or sold reaching NT$300 million or more than 20% of the paid-in capital: Attachment 3.
Acquisition amount of real estate reaching NT$300 million or more than 20% of the paid-in capital: Attachment 9.
Amount on disposal of real estate reaching NT$300 million or more than 20% of the paid-in capital: None.
Purchase/sale amount of transactions with related parties reaching NT$100 million or more than 20% of the paid-in capital: Attachment 4 and 10.
Accounts receivable from related party reaching NT$100 million or more than 20% of the paid-in capital: Attachment 5 and 11.
Transactions of derivatives: Note VII.
Information on investees: Attachment 6.
Others: Amount of the business relationship and major transactions between parent company and subsidiaries and among subsidiaries: Attachment 14.

318

(III) Information on investment in Mainland China
The name of the investee in Mainland China, main items involved in the scope of operation, paid-in capital size, investment method, capital importation/exportation, holding ratio, investment profits and losses, book value of investments at end of term, repatriated investment profits or losses, and investment ceiling value for Mainland China: Attachment 12.
Major transactions and their values, payment terms, unrealized profits or losses that have incurred directly or indirectly through a third region with the investees in Mainland China: Attachment 13.
Direct, or indirect, via a third area, endorsement, guarantee or provision of collateral made with the investees in the Mainland China: Attachment 1.
Direct, or indirect, via an enterprise in a third area, financing with the investees in the Mainland China: Attachment 7.
Other transactions that produce material effects on the income or financial status in the current period: None.
(IV) Information of major shareholders: Names and shareholding quantities and ratios of shareholders that hold at least 5% of the equity: Attachment 15.

XXXIV. Segment information

The Consolidated Company primarily engaged in manufacturing, processing and trading printed circuit boards from the same production process, in the similar manner in the similar market. Meanwhile, the business decision makers also allocated resources among all of the companies as a whole. Therefore, all of the companies should constitute one single industry segment, and there should be no need to disclose the information by segment.

319

GOLD CIRCUIT ELECTRONICS LTD. and its subsidiaries

Endorsement and guarantee made for others

January 1 to December 31, 2023

Attachment 1

Unit: NTD thousand, USD thousand, CNY thousand and EUR thousand

No.	Endorsed/ guaranteed by	Counterpart	Counterpart	Limits of endorsement and guarantee to a single enterprise (Note 1)	Maximum balance of endorsement / guarantee made during the current period	Balance of endorsement / guarantee at end of the period	Amount actually disbursed	Endorsement/ guarantee secured by property	Accumulated amount of endorsement and guarantee as a percentage in the net worth of the financial statements in the most recent period (%)	Maximum limits of endorsement and guarantee (Note 2)	Endorsement/ guarantee provided by the Company to the subsidiary (Note 3)	Endorsements/ guarantees provided by subsidiaries to parent company (Note 3)	Endorsement/g uarantee in Mainland China (Note 3)
		Name	Affiliation
0	GOLD CIRCUIT ELECTRONICS LTD.	Goldex Holding Limited Gold Circuit International Limited Gold Circuit Enterprise Limited Suzhou Gold Circuit Electronics Ltd. Changshu Gold Circuit Electronics Ltd.	Subsidiary wholly invested by the Company directly Company wholly invested via a subsidiary indirectly Company wholly invested via a subsidiary indirectly Company wholly invested via a subsidiary indirectly Company wholly invested via a subsidiary indirectly	$ 11,365,320 11,365,320 11,365,320 11,365,320 11,365,320 11,365,320	$ 707,020 ( USD 23,000 ) 173,550 ( EUR 5,000 ) 259,400 ( USD 8,000 ) 648,500 ( USD 20,000 ) 609,600 ( USD 20,000 ) 245,920 ( USD 8,000 )	$ 644,805 ( USD 21,000 ) 101,940 ( EUR 3,000 ) 245,640 ( USD 8,000 ) 614,100 ( USD 20,000 ) - ( USD - ) - ( USD - )	$ - ( USD - ) - ( EUR - ) - ( USD - ) - ( USD - ) - ( USD - ) - ( USD - )	$ - - - - - -	4.26% 0.67% 1.62% 4.05% - -	$ 22,730,641 22,730,641 22,730,641 22,730,641 22,730,641 22,730,641	Y Y Y Y Y Y	N N N N N N	N N N N Y Y

Note 2: The aggregate amount of the endorsements/guarantees made by the Company outward shall not exceed 150% of the Company’s net value in the current period. The maximum of the endorsements/guarantees made on December 31, 2023 was equivalent to 75% of the Company’s most recent financial statements audited or certified by the CPA (for Q3 of 2023).

Note 3: Enter Y only in the case of the parent company’s endorsements/guarantees toward subsidiary(ies), a subsidiary’s endorsements/guarantees toward its parent company, and the endorsements/guarantees toward the Mainland China area.

320

GOLD CIRCUIT ELECTRONICS LTD. and its subsidiaries

Marketable securities held – end of year

December 31, 2023

Attachment 2

Unit: NTD thousand

Holder	Type and name	Affiliation to the issuer	Account title			End ofperiod	End ofperiod			Remarks
				Number of shares		Book value	Equity (%)		Fair value
GOLD CIRCUIT ELECTRONICS LTD. 〃〃〃〃〃	Stock AMB Technology Co., Ltd ULTRA PRECISION TECHNOLOGY COMPANY King Hsiang Investment Co. Gold Circuit Electronics (Thailand) Co., Ltd. Goldex Holding Limited	－－ Subsidiary Subsidiary Subsidiary	Financial assets at fair value through other comprehensive income - noncurrent Financial assets at fair value through other comprehensive income - noncurrent Long-term equity investment under equity method Long-term equity investment under equity method Long-term equity investment under equity method	267,857 1,000,000 19,999,400 20,750,000 181,910,000		$ - - $ - $ 58,658 651,691 9,462,754 $ 10,173,103	1.984 10.290 99.997 100.000 100.000		$ - - $ - $ 58,658 651,691 9,462,754 $ 10,173,103

321

Gold Circuit Electronics Ltd. and its Subsidiaries

Cumulative amount of the same marketable securities purchased or sold reaching NT$300 million or more than 20% of the paid-in capital

2023

							2023	2023
Attachment 3												Unit: NTD thousand, unless otherwise specified
Buying/selling company	Type and name (Note 1)	Account title	Trading counterpart (Note 2)	Affiliation (Note 2)	Beginning of period		Buy (Note 3)			Sale (Note 3)			End of period
					Number of shares	Amount	Number of shares	Amount	Number of shares	Selling price	Book cost	Disposal gain or loss	Number of shares	Amount
GOLD CIRCUIT ELECTRONIC S LTD.	Gold Circuit Electronics (Thailand) Co., Ltd	Investments under equity method	-	-	20,750,000	$ 667,644							20,750,000	$ 667,644

Note 1: Securities mentioned in this table refer to stocks, bonds, beneficiary certificates and marketable securities derived from the above items.

322

GOLD CIRCUIT ELECTRONICS LTD. and its subsidiaries

Purchase/sale amount of transactions with related parties reaching NT$100 million or more than 20% of the paid-in capital

January 1 to December 31, 2023

Attachment 4

Unit: NTD thousand

Supplier (customer)	Trading counterpart	Affiliation		Status	Status		Distinctive terms and conditions of trade and the reasons	Distinctive terms and conditions of trade and the reasons	Notes/accounts receivable (payable)	Notes/accounts receivable (payable)	Remarks
			Purchase (sale)	Amount	Percentage in total purchase (sale) amount %	Duration	Unit price	Duration	Balance	Percentage in total accounts/notes receivable (payable) %
GOLD CIRCUIT ELECTRONICS LTD. GOLD CIRCUIT ELECTRONICS LTD. GOLD CIRCUIT ELECTRONICS LTD. GOLD CIRCUIT ELECTRONICS LTD.	Suzhou Gold Circuit Electronics Ltd. Changshu Gold Circuit Electronics Ltd. Changshu Gold Circuit Technology Co., Ltd. Suzhou Gold Circuit Electronics Ltd.	Company wholly invested via a subsidiary indirectly Company wholly invested via a subsidiary indirectly Company wholly invested via a subsidiary indirectly Company wholly invested via a subsidiary indirectly	Purchase Purchase Purchase Sales	$ 10,121,772 4,941,611 1,789,945 ( 201,732 )	43 21 8 ( 1 )	O/A 3 months O/A 4 months O/A 3 months O/A 3 months	- - - -	－－－－	( $ 3,905,447 ) ( 1,420,663 ) ( 314,617 ) 65,286	( 49 ) ( 18 ) ( 4 ) 1

323

GOLD CIRCUIT ELECTRONICS LTD. and its subsidiaries

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

December 31, 2023

Attachment 5


Attachment 5								Unit: NTD thousand
Companies stated into accounts receivable	Trading counterpart	Affiliation	Balance of accounts receivable - related party	Turnover (Note 1)	Overdue accounts receivable - related party		Amounts received in subsequent period - related party	Allowance loss
					Amount	Accounting treatment
GOLD CIRCUIT ELECTRONICS LTD.	Suzhou Gold Circuit Electronics Ltd.	Company wholly invested via a subsidiary indirectly	Accounts receivable $ 65,286 Other receivables 59,097	2.90 -	$ - -	－－	$ 21,264 31,593	$ - -

Note 12: The days sales outstanding are not calculated for other receivables from related parties.

324

Unit: NTD thousand

GOLD CIRCUIT ELECTRONICS LTD. and its subsidiaries

Information related to the reinvested companies… such as names and locations.

January 1 to December 31, 2023

Table 6

Investor	Investee	Location	Principal business	Original investment cost	Original investment cost	Holdings at end ofyear	Holdings at end ofyear	Holdings at end ofyear	Investment gain (loss) of the investee	Investment gain (loss) recognized for the current period (Note1)	Remarks
				End of the current period	End of the previous period	Number of shares	Percentage (%)	Book value
GOLD CIRCUIT ELECTRONICS LTD. 〃〃 Goldex Holding Limited 〃 Gold Circuit International Limited Gold Circuit Enterprise Limited 〃	King Hsiang Investment Co. Goldex Holding Limited Gold Circuit Electronics (Thailand) Co., Ltd. Gold Circuit International Limited Gold Circuit Enterprise Limited Suzhou Gold Circuit Electronics Ltd. Changshu Gold Circuit Electronics Ltd. Changshu Gold Circuit Technology Co., Ltd.	No. 149-1, Zhong Zeng Rd., Tamsui Dist, New Taipei City Trust Net Chambers Lotemau Centre, P.O. Box 1225, Apia, Samoa No. 664/25 Pracharat Bamphen Rd., Sam Saen Nok, Huai Khwang, Bangkok, 10310, Thailand P.O. Box 362, Road Town, Tortola, Virgin islands, British Turst Net Chambers Lotemau Centre, P.O Box 1225, Apia, Samoa No. 238, Jinfeng Road, New District, Suzhou City, Jiangsu Province No. 9, Jiulong Rd., Changshu Southeast Economic Development Zone, Jiangsu Province No. 816, Southeast Avenue, Changshu Hi-Tech Industrial Development Zone, Jiangsu Province	General investment business 〃 Design, produce and sell multi-layer printed circuit boards General investment business 〃 Design, produce and sell multi-layer printed circuit boards 〃〃	$ 199,994 5,822,733 667,644 3,239,310 2,383,429 3,239,310 959,724 980,105	$ 199,994 6,116,948 - 3,239,310 2,670,554 3,239,310 959,724 980,105	19,999,400 181,910,000 20,750,000 98,000,000 83,010,000 98,000,000 30,010,000 33,000,000	99.997 100.000 100.000 100.000 100.000 100.000 100.000 100.000	$ 58,658 9,462,754 651,691 6,551,040 3,104,559 6,710,069 3,573,768 ( 566,002 )	$ 692,609 2,828,412 1,787 1,970,722 866,209 1,978,397 716,234 144,845	( $ 1,282 ) 2,814,780 1,787 1,964,013 859,286 1,971,688 705,681 148,475	(Note 2)

Note 1: The investment gain (loss) recognized for the current period has taken into consideration the effects of unrealized (realized) gross losses on sales among reinvested companies.

325

GOLD CIRCUIT ELECTRONICS LTD. and its subsidiaries

Fund loaned by investees to others

January 1 to December 31, 2023

Attachment 7

Unit: NT$ thousand, USD thousand, and CNY thousand

No.	Loaner	Debtor	Whether a related party or not	Transaction items	Maximum balance for the current period	Balance – end of period	Amount actually disbursed	Interest rate interval (Note 3)	Nature of lending of funds (Note 1)	Amount	Reasons for short-term financing	Allowance for doubtful accounts	Collateral	Collateral	Limit of loan to each borrower (Note 2)	Limit of total lending (Note 2)
													Title	Value
1 2 2 2 2 2	Goldex Holding Limited Gold Circuit Enterprise Limited Changshu Gold Circuit Electronics Ltd. Changshu Gold Circuit Electronics Ltd. Suzhou Gold Circuit Electronics Ltd. Suzhou Gold Circuit Electronics Ltd.	Gold Circuit International Limited Gold Circuit International Limited Changshu Gold Circuit Technology Co., Ltd. Changshu Gold Circuit Technology Co., Ltd. Changshu Gold Circuit Technology Co., Ltd. Changshu Gold Circuit Technology Co., Ltd.	Y Y Y Y Y Y	Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables	$ 95,580 ( USD 3,000) 97,275 ( USD 3,000) 889,000 ( CNY 200,000) 243,188 ( USD 7,500) 818,070 ( CNY 185,000) 809,640 ( USD 26,000)	$ 85,974 ( USD 2,800) 92,115 ( USD 3,000) 865,400 ( CNY 200,000) 230,288 ( USD 7,500) 800,495 ( CNY 185,000) - ( USD -)	$ 85,974 ( USD 2,800) 92,115 ( USD 3,000) 865,400 ( CNY 200,000) 211,343 ( USD 6,883) 800,495 ( CNY 185,000) - ( USD -)	4.000%~5.000% 4.000%~5.000% 1.500%~3.550% 0.800%~4.200% 2.700%~3.500% 1.500%~5.100%	(2) (2) (2) (2) (2) (2)	$ - - 84,595 84,595 150,505 150,505	Working capital Working capital Working capital Working capital Working capital Working capital	$ - - - - - -	－－－－－－	$ - - - - - -	$ 26,975,323 9,155,016 5,391,014 5,391,014 9,110,276 9,110,276	$ 26,975,323 9,155,016 5,391,014 5,391,014 9,110,276 9,110,276

Note 1: The fund loaned to others is categorized two types as following by nature:

(1) Business association

(2) Short-term financing needed

Note 3: The interest rate interval for the funds lent in 2023

326

GOLD CIRCUIT ELECTRONICS LTD. and its subsidiaries

Marketable securities held by investees - end of period

December 31, 2023

Table 8

Unit: NTD thousand

Holder	Type and name	Affiliation to the issuer	Account title			End ofperiod	End ofperiod			Remarks
				Number of shares		Book value	Equity (%)		Fair value
King Hsiang Investment Co. 〃〃	Stock LEE CHI ENTERPRISE CO., LTD. GOLD CIRCUIT ELECTRONICS LTD.	－ The parent company in which King Hsiang Investment Co. held 99.997% shares	Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current	155,595 5,151,375		$ 2,420 1,123,000 $ 1,125,420	0.068 1.047		$ 2,420 1,123,000 $ 1,125,420

327

Gold Circuit Electronics Ltd. and its Subsidiaries

Acquisition amount of real estate reaching NT$300 million or more than 20% of the paid-in capital

2023

Attachment 9

Unit: NTD thousand, unless otherwise specified

Real estate acquiring company	Property name	Date of occurrence	Transaction currency/ amount	Payment status	Trading counterpart	Affiliation	If the trading counterparty is a related party, the information of the previous transfer	If the trading counterparty is a related party, the information of the previous transfer	If the trading counterparty is a related party, the information of the previous transfer	If the trading counterparty is a related party, the information of the previous transfer	Reference for price determination	Purpose of acquisition and use status	Other agreements
							Owner	Relationship with issuer	Date of transfer	Amount
Gold Circuit Electronics (Thailand)Co., Ltd.	Land	11/14/2023	THB NT$392,294 thousand	All repaid in full.	IPP IP 7 COMPANY LIMITED	Non-related party	N/A	N/A	N/A	N/A	Professional land appraisal report	Development of new business

Note 1: If the acquired assets are subject to appraisal according to the regulations, the appraisal result shall be indicated in the “Reference for price determination” column.

Note 2: Paid-in capital refers to that of the parent company. In the case of an issuer whose shares have no par value or a par value other than NT$10 per share, the requirement of 20% of paid-in capital for transaction amount shall be calculated based on 10% of the equity attributable to the owners of the parent company on the balance sheet.
Note 3: The date of occurrence refers to the date of contract signing, date of payment, date of consignment trade, date of transfer, date of resolution of the board of directors, or other dates based on which the counterparty and amount of the transaction, whichever date is earlier, can be determined.

328

GOLD CIRCUIT ELECTRONICS LTD. and its subsidiaries

Purchase/sale amount of transactions of reinvested companies with related parties reaching NT$100 million or more than 20% of the paid-in capital

January 1 to December 31, 2023

Attachment 10

Unit: NTD thousand

Supplier (customer)	Trading counterpart	Affiliation		Status	Status		Distinctive terms and conditions of trade and the reasons	Distinctive terms and conditions of trade and the reasons	Notes/accounts receivable (payable)	Notes/accounts receivable (payable)	Remarks
			Purchase (sale)	Amount	Percentage in total purchase (sale) amount (%)	Duration	Unit price	Duration	Balance	Percentage in total accounts/notes receivable (payable) (%)
Suzhou Gold Circuit Electronics Ltd. Changshu Gold Circuit Electronics Ltd. Changshu Gold Circuit Technology Co., Ltd. Changshu Gold Circuit Electronics Ltd. Suzhou Gold Circuit Electronics Ltd. Changshu Gold Circuit Technology Co., Ltd.	GOLD CIRCUIT ELECTRONICS LTD. GOLD CIRCUIT ELECTRONICS LTD. GOLD CIRCUIT ELECTRONICS LTD. Suzhou Gold Circuit Electronics Ltd. GOLD CIRCUIT ELECTRONICS LTD. Suzhou Gold Circuit Electronics Ltd.	Ultimate parent company Ultimate parent company Ultimate parent company Associate Ultimate parent company Associate	Sales Sales Sales Sales Purchase Sales	( $ 10,121,772 ) ( 4,941,611 ) ( 1,789,945 ) ( 630,566 ) 201,732 ( 150,505 )	( 93 ) ( 86 ) ( 85 ) ( 11 ) 4 ( 7 )	O/A 3 months O/A 4 months O/A 3 months O/A 4 months O/A 4 months O/A 4 months	- - - - - -	－－－－－－	$ 3,905,447 1,420,663 314,617 378,329 ( 65,286 ) 58,878	91 76 67 20 ( 2 ) 13

329

GOLD CIRCUIT ELECTRONICS LTD. and its subsidiaries

Receivable of the investee from related parties reaching NT$100 million or more than 20% of the paid-in capital

December 31, 2023

Attachment 11

Unit: NTD thousand

Companies stated into accounts receivable	Trading counterpart	Affiliation	Balance of accounts receivable - related party	Turnover (Note 1)	Overdue accounts receivable - related party	Overdue accounts receivable - related party	Amounts received in subsequent period - related party	Allowance loss
					Amount	Accounting treatment
Suzhou Gold Circuit Electronics Ltd. Changshu Gold Circuit Electronics Ltd. Changshu Gold Circuit Technology Co., Ltd. Suzhou Gold Circuit Electronics Ltd. Changshu Gold Circuit Electronics Ltd. Changshu Gold Circuit Electronics Ltd. Suzhou Gold Circuit Electronics Ltd. Changshu Gold Circuit Electronics Ltd. Changshu Gold Circuit Electronics Ltd.	GOLD CIRCUIT ELECTRONICS LTD. GOLD CIRCUIT ELECTRONICS LTD. GOLD CIRCUIT ELECTRONICS LTD. Changshu Gold Circuit Technology Co., Ltd. Suzhou Gold Circuit Electronics Ltd. Changshu Gold Circuit Technology Co., Ltd. Changshu Gold Circuit Technology Co., Ltd. Suzhou Gold Circuit Electronics Ltd. Changshu Gold Circuit Technology Co., Ltd.	Ultimate parent company Ultimate parent company Ultimate parent company Affiliated enterprise Affiliated enterprise Affiliated enterprise Affiliated enterprise Affiliated enterprise Affiliated enterprise	Accounts receivable $ 3,905,447 Accounts receivable 1,420,663 Accounts receivable 314,617 Accounts receivable 76 Accounts receivable 378,329 Accounts receivable 2,979 Other receivables 812,117 Other receivables 1,070 Other receivables 1,105,547	2.44 3.86 7.17 1.77 1.77 1.98 - - -	$ - - - - - - - - -	－－－－－－－－－	$ 1,597,060 899,309 314,617 50 139,547 2,161 - 444 217,793	$ - - - - - - - - -

Note 12: The days sales outstanding are not calculated for other receivables from related parties.

330

GOLD CIRCUIT ELECTRONICS LTD. and its subsidiaries

Information about investment in Mainland China

January 1 to December 31, 2023

Attachment 12

Unit: NTD thousand/USD thousand

Name of invested company in China	Principal business	Paid-in capital	Investment method (Note 1)	Cumulative investment amount outward remitted from Taiwan - beginning of the period	Investment remittance or regain in the current period	Investment remittance or regain in the current period	Cumulative investment amount outward remitted from Taiwan - end of the period	Net income of investee	Shareholdings of the Company’s direct or indirect investment (%)	Investment gains or losses recognized for the current period (Note 2)	Book value of investment at ending	Investment income repatriated to Taiwan as of the end of the period
					Outward remitted	Repatriated
Suzhou Gold Circuit Electronics Ltd. Changshu Gold Circuit Electronics Ltd. Changshu Gold Circuit Technology Co., Ltd.	Design, produce and sell multi-layer printed circuit boards Design, produce and sell multi-layer printed circuit boards Design, produce and sell multi-layer printed circuit boards	$ 3,239,310 959,724 980,105	2 2 3	$ 3,239,310 959,724 980,105	$ - - -	$ - - -	$ 3,239,310 959,724 980,105	$ 1,978,397 716,234 144,845	100 100 100	2.(2) $ 1,971,688 2.(2) 705,681 2.(2) 148,475	$ 6,710,069 3,573,768 ( 566,002 )	$ 627,583 252,915 -

Accumulated investments outward remitted from Taiwan at Ending		Investment amount approved by Investment Commission, MOEA			Limit of investment amount required by Investment Commission, MOEA (Note 4)
$ 5,179,139 USD 161,010		$ 4,943,812 USD 161,010			$ -

Note 1: The modes of investment are classified into the following four types:

Investments in Mainland China companies through remittance from a third area.
To invest in Mainland China companies through a company invested and established in a third area.
To invest in Mainland China companies through reinvesting in an existing company in a third area.
Other ways, ex: discretionary investment contract

Note 2: For the field of investment gain/loss recognized in the current period:

Please mark out if there has been no investment gain or loss yet because the investment is still under planning.
The basis of recognition of investment gain/loss is classified into following three types, which should be marked out.
(1) Financial statements reviewed and approved by an international CPA firm which cooperates with a CPA firm of the ROC.
(2) Financial statements audited by the CPAs of the parent company in Taiwan.
(3) Others

Note 3: The related figures herein should be expressed in NTD.

331

GOLD CIRCUIT ELECTRONICS LTD. and its subsidiaries

Any significant transactions with investees in Mainland China, either directly or indirectly through a third area

January 1 to December 31, 2023

Attachment 13

Unit: NTD thousand

Related parties’ names	Affiliation of the Company with related party	Type of transaction	Amount		Trading conditions		Notes/accounts receivable (payable)	Notes/accounts receivable (payable)	Unrealized loss (gain)
				Price	Payment terms	Comparison with the general transactions	Balance	Percentage (%)
Suzhou Gold Circuit Electronics Ltd. 〃 Changshu Gold Circuit Electronics Ltd. 〃 Changshu Gold Circuit Technology Co., Ltd. 〃	Company wholly invested via a subsidiary indirectly 〃 Company wholly invested via a subsidiary indirectly 〃 Company wholly invested via a subsidiary indirectly 〃	Purchase Sales Purchase Sales Purchase Sales	$ 10,121,772 201,732 4,941,611 41,561 1,789,945 29,710	$ 10,121,772 201,732 4,941,611 41,561 1,789,945 29,710	Regular Regular Regular Regular Regular Regular	Similar Similar Similar Similar Similar Similar	( $ 3,905,447 ) 65,286 ( 1,420,663 ) 15,060 ( 314,617 ) 11	( 91 ) 1 ( 76 ) - ( 67 ) -	( $ 6,709 ) ( 10,553 ) 3,630

332

GOLD CIRCUIT ELECTRONICS LTD. and its subsidiaries

Business relationship and major transactions between the parent company and each of its subsidiaries and among the subsidiaries and the amount January 1 to December 31, 2023

Attachment 14

Unit: NTD thousand

No. (Note 1)	Name of trader	Trading counterpart	Relationship with the trader (Note 2)			Transaction
				Title	Amount	Trading conditions	Percentage in total consolidated revenue or total assets (%) (Note 3)
0 1 2	GOLD CIRCUIT ELECTRONICS LTD. Goldex Holding Limited Gold Circuit Enterprise Limited	King Hsiang Investment Co. Goldex Holding Limited Suzhou Gold Circuit Electronics Ltd. Changshu Gold Circuit Electronics Ltd. Changshu Gold Circuit Technology Co., Ltd. Gold Circuit International Limited Gold Circuit International Limited	1 1 1 1 1 3 3	Other revenue Other payables Accounts receivable Other receivables Accounts payable Sales revenue Cost of goods sold Other revenue Accounts receivable Accounts payable Sales revenue Cost of goods sold Accounts receivable Other receivables Accounts payable Sales revenue Cost of goods sold Interest receivable Other receivables Other payables Interest revenue Interest receivable Other receivables Interest revenue	$ 24 10,566 65,286 59,097 3,905,447 201,732 10,121,772 123 15,060 1,420,663 41,561 4,941,611 11 948 314,617 29,710 1,789,945 131 85,974 10,566 3,971 141 92,115 3,700	Equivalent to those applicable to a non-related party Equivalent to those applicable to a non-related party Equivalent to those applicable to a non-related party Equivalent to those applicable to a non-related party Equivalent to those applicable to a non-related party Equivalent to those applicable to a non-related party Equivalent to those applicable to a non-related party Equivalent to those applicable to a non-related party Equivalent to those applicable to a non-related party Equivalent to those applicable to a non-related party Equivalent to those applicable to a non-related party Equivalent to those applicable to a non-related party Equivalent to those applicable to a non-related party Equivalent to those applicable to a non-related party Equivalent to those applicable to a non-related party Equivalent to those applicable to a non-related party Equivalent to those applicable to a non-related party Equivalent to those applicable to a non-related party Equivalent to those applicable to a non-related party Equivalent to those applicable to a non-related party Equivalent to those applicable to a non-related party Equivalent to those applicable to a non-related party Equivalent to those applicable to a non-related party Equivalent to those applicable to a non-related party	- - - - 12 1 34 - - 4 - 16 - - 1 - 6 - - - - - - -

(To be continued)

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(Continued)

No. (Note 1)	Name of trader	Trading counterpart	Relationship with the trader (Note 2)			Transaction
				Title	Amount	Trading conditions	Percentage in total consolidated operating revenue or total assets % (Note 3)
3 4	Suzhou Gold Circuit Electronics Ltd. Changshu Gold Circuit Electronics Ltd.	Changshu Gold Circuit Technology Co., Ltd. Changshu Gold Circuit Electronics Ltd. Changshu Gold Circuit Technology Co., Ltd.	3 3 3	Accounts receivable Other receivables Accounts payable Other payables Sales revenue Cost of goods sold Interest receivable Interest revenue Accounts receivable Other receivables Accounts payable Other payables Sales revenue Cost of goods sold Accounts receivable Accounts payable Other receivables Other payables Interest receivable Sales revenue Cost of goods sold Interest revenue	$ 76 802,014 58,878 1,324 3,359 150,505 10,103 21,433 6,770 9,454 378,329 1,070 63,679 630,566 2,979 7 1,078,383 34,207 27,164 5,474 84,595 35,850	Equivalent to those applicable to a non-related party Equivalent to those applicable to a non-related party Equivalent to those applicable to a non-related party Equivalent to those applicable to a non-related party Equivalent to those applicable to a non-related party Equivalent to those applicable to a non-related party Equivalent to those applicable to a non-related party Equivalent to those applicable to a non-related party Equivalent to those applicable to a non-related party Equivalent to those applicable to a non-related party Equivalent to those applicable to a non-related party Equivalent to those applicable to a non-related party Equivalent to those applicable to a non-related party Equivalent to those applicable to a non-related party Equivalent to those applicable to a non-related party Equivalent to those applicable to a non-related party Equivalent to those applicable to a non-related party Equivalent to those applicable to a non-related party Equivalent to those applicable to a non-related party Equivalent to those applicable to a non-related party Equivalent to those applicable to a non-related party Equivalent to those applicable to a non-related party	- 2 - - - 1 - - - - 1 - - 2 - - 3 - - - - -

Note 1: The information about transactions between parent company and subsidiaries shall be numbered and noted in the following manner in the box of numbers:

0 is for the Parent Company.
Subsidiaries are numbered from number 1.

Note 2: The relationship with the trader is classified into three categories as follows:

Parent Company to subsidiaries.
Subsidiaries to Parent Company.

3. Subsidiaries to subsidiaries.

Note 3: For computing the ratio of trade amount to the total consolidated operating revenue or total assets, if it is for asset and liability account, the computation is based on the ratio of ending balance to total consolidated assets; however, if it is for income and expense account, the computation is based on the ratio of interim cumulative amount to total consolidated operating revenue.

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GOLD CIRCUIT ELECTRONICS LTD. and its subsidiaries

Information of Major Shareholders

December 31, 2023

Attachment 15

Name of major shareholder	Shares	Shares
	Number of shares held (share)	Shareholding ratio
Chang-Chi Yang The labor pension reserve fund was fully authorized to Nomura Investment Account for the first time in 2022. Jui-Ching Li	96,622,217 35,601,320 27,651,870	19.64% 7.23% 5.62%

VI. Financial Difficulties Encountered by the Company and Its Affiliates over Past Year up to the Date the Annual Report Was Printed

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SEVEN. Discussion and Analysis of Financial Standing and Financial Performance and Risks

I. Analysis and comparison of financial position

Unit: NTD thousand

			Unit: NTD thousand	Unit: NTD thousand
Year Item	2022	2023	Deviation
			Amount	％
Current assets	22,726,472	24,912,799	2,186,327	9.62%
non-current assets	7,314,126	8,188,444	874,318	11.95%
Total assets	30,040,598	33,101,243	3,060,645	10.19%
Current liabilities	11,856,726	10,475,329	(1,381,397)	(11.65%)
Non-current liabilities	3,859,854	5,794,789	1,934,935	50.13%
Total liabilities	15,716,580	16,270,118	553,538	3.52%
Capital stock	4,918,391	4,918,391	0	0.00%
Additionalpaid-in capital	1,219,167	2,117,649	898,482	73.70%
Retained earnings	8,002,438	9,776,642	1,774,204	22.17%
Other equityitems	184,022	18,443	(165,579)	(89.98%)
Total shareholders’ equity	14,324,018	16,831,125	2,507,107	17.50%
Analysis of increase and decrease: 1. Increase in non-current liabilities: Mainly due to issuance of convertible bonds and recognition of corporate bonds payable 2. Increase in capital reserve: Mainly due to issuance of convertible corporate bonds recognized of capital reserve. 3. Increase in retained earnings: Mainly due to profit in 2023. 4. Decrease in other equity items: Mainly due to the translation difference in the financial statements of foreign operations.

II. Review and analysis of financial performance and risk issues

(II) Review of financial performance

			Unit: NTD thousand	Unit: NTD thousand
Year Item	2022	2023	Deviation
			Amount	％
Net operatingrevenue	32,785,064	30,043,950	(2,741,114)	(8.36%)
Operatingcost	24,056,976	22,320,154	(1,736,822)	(7.22%)
Grossprofit	8,728,088	7,723,796	(1,004,292)	(11.51%)
Operatingexpenses	2,705,292	2,624,581	(80,711)	(2.98%)
Other gains and losses	13,916	36,852	22,936	164.82%

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Year Item	2022	2023	Deviation	Deviation
			Amount	％
Net operating profit	6,036,712	5,136,067	(900,645)	(14.92%)
Non-operating income and expenditure	351,621	81,840	(269,781)	(76.72%)
Net profit before tax from continuingoperations	6,388,333	5,217,907	(1,170,426)	(18.32%)
Continuing operation net profit for theyear	4,567,875	3,528,592	(1,039,283)	(22.75%)
Other comprehensive income	84,475	(198,531)	(283,006)	(335.02%)
Total comprehensive income for currentyear	4,652,350	3,330,061	(1,322,289)	(28.42%)
Analysis of increase and decrease: 1. Increase in other gains and losses: Mainly due to the increase in other gains. 2. Decrease in non-operating revenue and expense: Mainly due to the decrease in foreign exchange gains or losses. 3. Decrease in continuing operation net profit for the year and comprehensive income: Mainly due to decrease in revenue for current period 4. Decrease in other comprehensive income: Mainly due to the exchange difference of translation in the financial statements and the difference in the remeasurement of defined benefitplans.

(II) Analysis of changes in gross profit:

It was 25.71% this year and 26.62% last year, with the percentage of change of 3.42%; the change was less than 20%.

(III) Expected sales volume (consolidated)

Year	Unit	2023	2024
Sales volume	SQFT	16,589,259	19,741,218

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III. Cash flow analysis

(I) Liquidity analysis for the last two years (consolidated)

Year Item	December 31, 2022	December 31, 2023	Percentage of increase (decrease) (%)
Cash flow ratio	37.48%	50.76%	35%
Net cash flow adequacyratio	125.65%	135.51%	8%
Cash flow reinvestment ratio	9.60%	9.38%	-2%
Analysis of percentage of increase and decrease: Increase in cash flow ratio: Mainlydue to issuance of convertible bonds.

(II)Analysis of cash liquidity in the coming year (consolidated)

Unit: NTD thousand

Cash balance at the beginning of the period	Estimated annual net cash flow from operating activities	Estimated annual cash outflow	Estimated amount of cash surplus (deficit) ＋－	Remedial measures for estimated cash deficit	Remedial measures for estimated cash deficit
				Investment plan	Financing plan
7,740,915	5,738,543	7,273,820	6,205,638		1,774,325

The data above is a financial budget that has not been reviewed by a CPA.

IV. Impact of major capital expenditures on financial operations in the last year

Unit: NTD thousand

				Unit: NTD thousand	Unit: NTD thousand
Item	Actual or expected Sources of funds	Actual or expected completion date (As of 2022)	Total funds required	Actual utilization of funds
				2022	2023
Production equipment	Self-owned funds and bank loans	Completed	1,362,645	1,362,645
Production equipment	Self-owned funds and bank loans	Completed	1,664,437		1,664,437

V. The most recent investment policy, the main reason for profit or loss thereof, improvement plan, and investment plan for the coming year
(I) The most recent investment policy

The Company’s investment policy is mainly to expand production capacity in consideration of the Company’s long-term development, instead of engaging in

338

investment in other businesses. The long-term investment strategy focuses on enhancing the core competitiveness of our business, strengthening technical capabilities, and satisfying overall customer services.

(II) The main reasons for the profit or loss of investment in the last year

Unit: NTD thousand

		Unit: NTD thousand
Investment item	Investment income in the lastyear	Description
King Hsiang Investment	(1,282)	Investee, mainly due to the estimated income tax loss.
Goldex Holding Limited	2,814,780	Recognized gains/losses on investment in the investee, mainly due to profits earned by all the three factories in Mainland China.
Gold Circuit Electronics (Thailand) Co., Ltd.	1,787	Subsidiary, under construction and not yet production-to-order, mainly due to exchange income.

(III) Investment plan for the coming year

The Company will continue to invest in the subsidiary in Thailand in the next year to meet the needs of customers’ orders.

VI. Matters to be analyzed and evaluated in risk management

(I) The impact of recent annual interest rate, changes in exchange rates, and inflation on the Company’s losses and future countermeasures.

The main risks of the Company’s operating activities arise from the risk of changes in foreign currency exchange rates and the risk of changes in interest rates.

Exchange rate risk

Several subsidiaries of the Company engaged in foreign currency-denominated sales and purchases, which exposed the Company the risk of foreign exchange rate changes therefor. About 98.25% of the Company Company’s sales were not denominated in the functional currency. About 41.74% of the costs of goods sold were not denominated in the functional currency. Insofar as it is permitted by policies, the Company utilized forward foreign exchange contracts to help manage the risk.

339

For the book value of the Company’s non-functional currency-denominated monetary assets and liabilities, and the value of the Company’s monetary liabilities, on the balance sheet date.

Interest rate risk

Operation-related credit risk

(II) The policy, main reasons for profit or loss, and future countermeasures for high-risk and high-leverage investments, loans to others, endorsements/guarantee provided, and derivatives trading in the last year.

The Company did not engage in high-risk and high-leverage investments in 2023. The Company’s wholly owned sub-subsidiaries Suzhou Gold Circuit and Changshu Gold Circuit engaged in loans to external entities, totaling NT$0. The Company’s wholly owned subsidiaries Gold Circuit International Limited, Goldex Holding Limited, Gold Circuit Enterprise, Suzhou Gold Circuit, Changshu Gold Circuit, and Changshu Gold Circuit Co., Ltd. engaged in endorsements/guarantees provided, totaling NT$2,643,990 thousand. Therefore, said transactions have been handled in accordance with the Company’s Regulations Governing Loaning of Funds and Making of Endorsements/Guarantees. In addition, the trading in derivative financial products by the Company are for the purpose of hedging risks arising from exchange rate changes, rather than for trading or speculative operations.

340

(III) Future R&D plans and estimated R&D expenses:

Unit: NTD thousand

	Item	Amount
1	Development of cross-shaped slot vertical conduction technology
		25,000

2	Development of high-end HDI deep skip via technology and equipment rank HDI
		120,000

3	Development of high-densitywafer test board technology	35,000
4	Development of the technology for high aspect ratio 30 with a micro bore diameter of 0.15mm	30,000
5	Development of material applications and technologies for next-generation servers	25,000
6	Development of multiple net via technology	10,000
7	Development of the technology for heterogeneously bond sinteredpaste	35,000
8	Development of 800G network communication board technologyand research on electricalproperty	25,000
9	Development of air gap technology for low-orbit satellites and ground receivers	10,000
10	Development of ladder board thinning technology for HDI product applications	20,000
11	Development of asymmetric sequential technology	20,000
12	Development of technology for local electroplating and fine circuits(VIPPO design)
		20,000

	Total amount	375,000

(IV) The impact of material political and legal changes at home and abroad in recent years on the Company’s financial business and countermeasures: None
(V) The impact of recent technological changes (including cyber security risk and industry changes) on the Company’s financial business and countermeasures: To respond to technological and industry changes and keep abreast of changes in the market, the Company obtains industry information through exhibitions, the Internet, industries, trading, and conferences held by unions, while improving R&D technology and tapping into its strong competitive advantages to expand its business and keep abreast of the industry information accurately and to create better performance in the future. Respective information security management requirements of the Company have to be based on applicable governmental laws and regulations (such as the Criminal Code,

341

the Patent Act, the Trademark Act, the Copyright Act, the Personal Data Protection Act, and the Trade Secrets Act). The “Information Security Promotion Organization” is responsible for the establishment and promotion of the information security system. The Organization periodically implements information security education and training to promote information security policies and related implementation regulations.

(VI) The impact of the changes in corporate image in recent years on corporate crisis management and countermeasures: The Company has a positive corporate image and continues to expand its business actively, and there is no relevant negative media report on the Company.
(VII) The expected benefits, potential risks, and countermeasures in respect of any merger and acquisition (M&A): From the beginning of 2023 to the publication date of the annual report, the Company had not engaged in any M&A.
(VIII) The expected benefits, potential risks, and countermeasures in respect of plant expansion: From the beginning of 2023 to the publication date of the annual report, the benefits of the Company’s plant expansion and purchase of machinery and equipment to increase production capacity were aligned in with its expectations.
(IX) Risks arising from customer and supplier concentration and countermeasures: The Company purchases raw materials from different suppliers as much as possible to ensure that the supply of raw materials is sufficient for mass production and to reduce the risk of supplier concentration. It continues to seek other purchase methods to reduce the risk of supplier concentration.
(X) The impact of the massive transfer or replacement of shares by directors, supervisors, or major shareholders holding more than 10% of the shares on the Company, risks thereof, and countermeasures: The Company’s directors and supervisors hold a certain percentage of shares stably, and since the stock was listed on Taiwan Stock Exchange in 1998, there have been no major changes in shareholdings and pledges. The Company’s operations are simple with the focus on its core business, and there has never been a massive transfer of shares.
(XI) The impact, risks, and countermeasures of the changes in the management rights on the Company: The Company’s directors and supervisors hold a certain percentage of shares stably, and the collaboration between major shareholders is smooth, and there is no risk arising from changes in the management rights.

342

(XII) For major litigation and non-litigious proceedings, any major litigation, non-litigious, or administrative disputes finalized or pending in court, in which the Company and its directors, supervisors, president, de facto persons in charge, major shareholders holding more than 10% of the shares, and affiliated companies have been involved, shall be specified. Where the outcome thereof may have a significant impact on shareholders’ equity or securities prices, the facts in dispute, the amount of the matter concerned, the start date of the litigation, the major parties involved, and the handling situation as of the publication date of the annual report shall be disclosed: From the beginning of 2023 to the publication date of the annual report, the Company had not involved in major litigation or non-litigious proceedings.

(XIII) Information security risks Potential risks and countermeasures:

In addition to the cyber attack risk in the Company and the group, inadequate information security awareness and knowledge, malicious software, viruses, spyware, and other information threats that will lead to abnormal or interrupted operation of the core information systems, as well as data theft and malicious damage are all information security risk factors that affect the Company’s normal operations. Therefore, for information security, the Company’s information security management system adopts the circular operation model of PDCA. In addition to specifying the information security policy as the highest guide, an information security management organization is established and at least one internal audit and one external audit (third-party verification unit) are arranged every year. Information security meetings are held monthly by information security representatives to review the Company’s existing information security practices and formulate improvement plans. A description of potential risks in the Company’s operations and countermeasures are provided below.

I. Enhance employees’ awareness of information security

As the data, information, and systems handled by internal employees are directly related to the Company’s operations, malware may be downloaded or the Company’s systems may be infected with malware due to carelessness, which may in turn affect the Company’s internal information security. Therefore, the Company enhances various hosts and protection measures, as well as occasionally makes internal announcements and conducts various information security drills in response to current information security attack methods with higher risks, to strengthen employees’ information security awareness.

343

II. Virus and malware threats

The sources of computer viruses may be the websites visited, e-mails containing malware, portable storage devices, and malware downloads. Therefore, the Company has established multi-layer defense and inspection mechanism, and equipped internal computers with anti-virus systems, and managed and controlled portable storage devices, while adopting a central control model for monitoring and protection so as to reduce the risk of malware infection and attacks.

III. Cyber attacks

Internet hacking will have the most direct impact on business operations. Therefore, the Company has developed necessary protective measures, including important network segmentation and access control, firewall, and intrusion detection; meanwhile, it conducts vulnerability detection and penetration tests for important hosts on a regular or irregular basis, and reviews the information security vulnerability reporting mechanism and repair work regularly, to minimize the chance for the vulnerabilities to be compromised.

IV. Operational interruption

For major operating services and data, the Company has placed important hosts in remote server rooms, and conducts on-site/off-site backups daily, and performs restoration drills regularly. In the event of major damage to or interruption of operating systems or databases, their operations can be resumed based on the schedules for different services.

From the beginning of 2023 to the publication date of the annual report, the Company has taken appropriate countermeasures to respond in a timely manner (e.g. analysis of sources of malicious email, blocking by firewall, virus detection, virus scanning, and system reinstallation), except for continuous attacks from malicious email, and there were no material information security incidents affecting the Company’s operations throughout the year.

(XIV) Other important risks and countermeasures: From the beginning of 2023 to the publication date of the annual report, the Company has not faced other material risks.

VII. Other important matters: None

344

Eight. Special Records

I. Information of affiliated enterprises:
(I) Organization chart of affiliated enterprises

Gold Circuit Electronics Ltd.

==> picture [404 x 280] intentionally omitted <==

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

99.997% 100.00% 100.00%
King Gold Circuit
Hsiang Goldex Holding Electronics
Investmen Limited (Thailand) Co.,
t Co., Ltd. Ltd.
100.00%
100.00%
Gold Circuit Gold Circuit
International Enterprise
Limited Limited
100.00% 100.00%
100.00%
Changshu Gold
Suzhou Gold Changshu Gold
Circuit
Circuit Circuit
Technology Co.,
Electronics Ltd. Electronics Ltd.
Ltd.
----- End of picture text -----

345

(II) Basic information of each affiliated enterprise (compilation base date December 31, 2023)

	Company Name	Date of establishme nt	Address	Paid-in capital	Main business or production items
Controlling company Ltd.	Gold Circuit Electronics Ltd.	September 5, 1981	No. 113, Xiyuan Road, Zhongli City	NT$4,918,391 thousand	Manufacturing, processing and trading of printed circuit boards
Affiliated company Ltd.	King Hsiang Investment Co., Ltd.	July 24, 1998	No. 149--1, Zhongzheng Road, Tamsui District, New TaipeiCity	NT$200,000 thousand	General investment business
	Gold Circuit International Limited	December 8, 1999	3rdFloor, J&C Building W PO Box 362, Road Town, Tortola, British Virgin Islands VG1110	US$98,000 thousand	General investment business
	Goldex Holding Limited	June 10, 2005	Portcullis Chambers , P.O.Box 1225, Apia, Samoa	US$181,910 thousand	General investment business
	Gold Circuit Enterprise Limited	December 31, 2006	Portcullis Chambers , P.O.Box 1225, Apia, Samoa	US$83,010 thousand	General investment business
	Suzhou Gold Circuit Electronics Ltd.	August 8, 2000	No. 238, Jinfeng Road, Suzhou New District	US$98,000 thousand	Manufacturing, processing and trading of printed circuit boards
	Changshu Gold Circuit Electronics Ltd.	March 15, 2006	No. 9, Jiulong Road, Southeast Economic Development Zone, Changshu, Jiangsu Province	US$30,010 thousand	Manufacturing, processing and trading of printed circuit boards
	Changshu Gold Circuit Technology Co., Ltd.	May 15, 2010	No. 816, southeast Avenue, Changshu hi tech Industrial Development Zone, Jiangsu Province	US$33,000 thousand	Manufacturing, processing and trading of printed circuit boards
	Gold Circuit Electronics (Thailand) Co., Ltd.	5.25.2023	No. 664/25 Pracharat Bamphen Rd., Sam Saen Nok, Huai Khwang, Bangkok, 10310,Thailand	US$20,750 thousand	Manufacturing, processing and trading of printed circuit boards

(III.) Information of the same shareholders of companies presumed to have control or affiliation relationship with the Company: None.

(IV.) Industries covered by the businesses of all affiliated enterprises: manufacturing, investment, and trading.

346

(V) Information of directors, supervisors and presidents of all affiliated companies:

Unit: share; % December 31, 2023

Company Name	Job title	Name or representative	Number of shares	Shareholding ratio
King Hsiang Investment Co., Ltd.	Chairman	Chen-Tse Yang	100	0.0005%
	Director	Chang-Chih Yang	100	0.0005%
	Director	Chen-Jung Yang	100	0.0005%
	Supervisor	Jui-Ching Li	100	0.0005%
Gold Circuit International Limited	Chairman	Chen-Tse Yang	—	—
Goldex Holding Limited	Chairman	Chen-Tse Yang	—	—
Gold Circuit Enterprise Limited	Chairman	Chen-Tse Yang	—	—
Suzhou Gold Circuit Electronics Ltd.	Chairman	Chen-Tse Yang	Note	—
	Director	Chang-Chih Yang
	Director	Chen-Jung Yang
Changshu Gold Circuit Electronics Ltd.	Chairman	Chen-Tse Yang	Note	—
	Director	Chang-Chih Yang
	Director	Chen-Jung Yang
Changshu Gold Circuit Technology Co., Ltd.	Chairman	Chen-Tse Yang	Note	—
	Director	Chang-Chih Yang
	Director	Chen-Jung Yang
Gold Circuit Electronics (Thailand) Co., Ltd.	Executive Director	Chen-Tse Yang	—	—
	Executive Director	Chang-Chin Yang	—	—

Note: It is a limited company with no shares

347

(VI) Operation status of each affiliated enterprise (compilation base date December 31, 2023)

	Unit: NTD thousand	Unit: NTD thousand	Unit: NTD thousand	Unit: NTD thousand	Unit: NTD thousand	Unit: NTD thousand	Unit: NTD thousand	Unit: NTD thousand
Company Name	Capital	Total assets	Total liabilities	Net worth	Operating income	Operating gain (loss)	Current profit and loss (after tax )	Earnings per share (after tax )
Gold Circuit Electronics Ltd.	4,918,391	33,204,887	16,373,762	16,831,125	29,428,588	1,511,294	3,528,592	7.25
King Hsiang Investment Co., Ltd.	200,000	1,182,778	1,119	1,181,659	0	(182)	692,609	3.46
Gold Circuit International Limited	3,239,310	6,729,401	178,361	6,551,040	0	1,970,722	1,970,722	20.01
Goldex Holding Limited	5,822,733	9,760,329	10,566	9,749,763	0	2,828,412	2,828,412	15.45
Gold Circuit Enterprise Limited	2,383,429	3,670,561	566,002	3,104,559	0	866,209	866,209	10.34
Suzhou Gold Circuit Electronics Ltd.	3,239,310	10,471,990	3,761,921	6,710,069	10,845,548	2,582,064	1,978,397	Note
Changshu Gold Circuit Electronics Ltd.	959,724	5,440,424	1,866,655	3,573,768	5,722,283	854,245	716,234	Note
Changshu Gold Circuit Technology Co., Ltd.	980,105	1,902,791	2,468,793	(566,002)	334,918	211,555	144,845	Note
Gold Circuit Electronics (Thailand) Co., Ltd.	667,644	652,008	317	651,691	0	830	1,787	0.10

Note: It is a limited company with no shares

348

(I) Consolidated business report and consolidated financial statements of affiliated

enterprises:

Companies that are to be included in the compiled Consolidated Financial Statement of Affiliates for 2023 (from January 1, 2023 to December 31, 2023) in accordance with the Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliates are identical to those that are to be compiled in the Consolidated Statement of Parent Company and Subsidiaries as per Statement of Financial Accounting Standards No. 7 and all the information that is to be disclosed in the Consolidated Financial Statement of Affiliates has been disclosed in the Consolidated Statement of Parent Company and Subsidiaries. Therefore, the Consolidated Financial Statement of Affiliates is not prepared separately.

(II) Relationship report: Not applicable
II. Private placement securities handling situation in the most recent year and as of the printing of the annual report: Not applicable.

349

III. Status of holding or disposal of the Company’s shares by subsidiaries in the most recent year and as of the date of publication of the annual report:

Subsidiary holding or disposal of the Company's shares

Unit: NT$ thousand; share; %

==> picture [478 x 113] intentionally omitted <==

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

Amount of
the
Number of Number of Number of shares and Amount of
The Company’s
Name of Date of shares shares Investment amount held as of the Pledge the
Paid-in Sources of Company's endorsemen
subsidiary acquisition or acquired disposed of profit and end of the year or the setting Company's
(Note 1) capital funds shareholdin disposal and amount and amount loss publication date of the situation ts and loans to
g ratio (Note 2) (Note 2) annual report (note 3) guarantees subsidiaries
for
subsidiaries
King Hsiang
Private 5,151,375 shares
Investment 200,000 99.997% 2023 - - (1,282) None. None.
capital NT$58,658 thousand [None ]
Co., Ltd.
----- End of picture text -----

Note 1: Please list separately by subsidiary.
2: The amount refers to the amount of the actual acquisition or disposal.
3: The circumstances of acquisition and disposal shall be listed separately.
4: Also explain its impact on the Company's operating results and financial status.
IV. Other necessary supplementary Clarification: None.
V. Matters that have a significant impact on shareholders’ equity or securities prices in the most recent year and as of the date of publication of the annual report:
None.

350

GOLD CIRCUIT ELECTRONICS LTD.

Chairman Chen-Tse Yang

351

AI assistant

GCE — Annual Report 2023

52035_rns_2024-06-03_3c682153-d4d2-41dc-97e9-075c2941d347.pdf

Gold Circuit Electronics 2023 Annual report

Table of Contents

ONE. Letter to Shareholders:

Business Status in 2023

(III) Profit and loss (consolidated):

II. Business plan for 2024

Two. Company Profile

I. Company Profile

Three. Corporate Governance Report

(II) Functions of each main department:

II. Information on Directors, Supervisors, President, Vice Presidents, Assistant Vice Presidents, and Heads of Departments and Branches:

(I) Directors and supervisors

Table 1: Major Shareholders of Institutional Shareholders

(III) Disclosure of information on the professional qualifications of directors and supervisors and the independence of independent directors

(IV) Diversity and independence of the Board of Directors:

1. Remuneration paid to Directors, Supervisors, President, and Vice Presidents:

(1-2-2) Range of remuneration

(2-2) Remuneration of supervisors:

(3-2-1) Remuneration to President and Vice Presidents

(3-2-2) Range of remuneration

(4-1) Remuneration of the top five executives of the TWSE/TPEx listed company with the highest remuneration (Note 1)

2. The name of the manager who receives the employee bonus and the distribution:

III. Status of Corporate Governance

Information on the operation of the Board of Directors

(II) Operation of the Audit Committee

Information on Audit Committee members

Audit Committee’s participation in the operation of the Board of Directors

Supervisors’ participation in the operation of the Board of Directors

(1) Information on Remuneration Committee members

The operation of the Remuneration Committee

5. The promotion of sustainable development, the deviations from the sustainable development of listed companies, and the reasons:

Flow chart for investigation of any violation of ethics (including suspected one):

GOLD CIRCUIT ELECTRONICS LTD. Statement on the Internal Control System

Date: March 12, 2024

FOUR. Capital and Shares

(II) Formation of capital stock

II. Shareholder structure

III. Distribution of shareholders

Distribution of shareholdings

IV. Name list of major shareholders

X. Status of corporate bonds:

(I) Issuance of corporate bonds

Information on convertible corporate bonds

XV. Implementation status of financing plans:

FIVE. Operational Overview

1. Current status and development of the industry

2. Correlation of upstream, midstream and downstream industries

3. Product development trends

4. Industry competition

(III) Overview of technology and R&D:

R&D investment in the most recent year

(I) Market analysis:

1. Locations where products and services are provided:

2. Market share

3. Future supply, demand and growth of the market:

4. Competitive niches

(1) Favorable factors:

(II) Supply of main raw materials:

1. Purpose of main products

2. Production process

(IV) Major suppliers and customers in the last two years:

2. List of major customers in the most recent two years (accounting for more than 10% of net sales)

IV. Information on environmental protection expenditure:

(II) Estimated environmental protection expenditure in the next two years

V. Labor–management relations

1. Employee welfare:

2. Work environment and personal safety

3. Retirement system:

4. Important labor-management agreements:

(II) Information security policy

(III) Specific management plan

VII.

Important contracts:

SIX. Financial Overview

I. Condensed Balance Sheet and Condensed Comprehensive Income Statement of the Past Five Years

(II) Consolidated Condensed Statement of Comprehensive

Income-International Financial Reporting Standards

GCE Annual Report 2023