GS — Audit Report / Information 2023

Dec 18, 2023

G-SHANK ENTERPRISE CO., LTD.

Parent Company Only Financial Statements for the Years Ended December 31, 2023 and 2022 and Independent Auditors’ Report

Notice to Readers

The reader is advised that these financial statements have been prepared originally in Chinese. In the event of a conflict between these financial statements and the original Chinese version or difference in interpretation between the two versions, the Chinese language financial statements shall prevail.

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INDEPENDENT AUDITOR’S REPORT

To: G-SHANK ENTERPRISE CO., LTD.

Opinion

We have audited the accompanying parent company only balance sheets of G-SHANK ENTERPRISE CO., LTD. as of December 31, 2023, and 2022, and the related parent company only statements of comprehensive income, retained earnings, and cash flows for the years then ended.

In our opinion, based on our audit and the audit reports of other independent auditors (please refer to the relevant paragraphs for details), the parent company only financial statements referred to above present fairly, in all material respects, the financial position of G-SHANK as of December 31, 2023, and 2022, and the results of its operations and its cash flows for the years then ended in conformity with the Regulations Governing the Preparation of Financial Reports by Securities Issuers”.

Basis for opinion

We conducted our audit in accordance with the “Rules Governing Auditing and Certification of Financial Statements by Certified Public Accountings” and generally accepted auditing standards. The responsibilities of the independent auditors under these standards will be further explained in the audit performed on the consolidated financial statements. The personnel of the CPA Firm subject to the independence requirement has acted independently from the business operations of G-SHANK in accordance with the Code of Ethics and have performed other responsibilities of the Code of Ethics. We believe that our audit and other CPA’s audit reports provide a reasonable basis for our opinion.

Key audit matters

The key audit matters refer to the most important matters in auditing the 2023 parent company only financial statements of G-SHANK in accordance with the professional judgment of the independent auditors. These matters have been handled during the process of reviewing the parent company only financial statements as a whole with audit opinions formed. The independent auditor does not express an independent opinion on these matters. The independent auditor determines that the key audit matters to be communicated in the audit report are as follows:

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1. Income recognition

Please refer to Note 4.(15) to the parent company only financial statements for the accounting policy on income recognition. Also, please refer to Note 6.(21) for the operating income in detail.

The operating income of G-SHANK is mainly generated from the production and sales of molds and stamping parts. The timing of income recognition is based on the transaction conditions agreed with each individual customer. An inappropriate timing for income recognition and unreasonable estimation of the refund liabilities for sales returns and sales discounts are key matters for income recognition, which will have an impact on the financial performance of G-SHANK. The independent auditor has the income recognition classified as a key audit matter in auditing the parent company only financial statements of G-SHANK.

The auditing procedures implemented by the independent auditors for the aforementioned key audit matters include: Understanding the sales process of G-SHANK, testing the internal control related to income recognition, reviewing the terms of the sales with the major customers, performing income cut-off tests, and checking the book-entry of sales returns and discounts, the measurement of the estimated refund liabilities for sales returns and sales discounts, and the implementation of analytical procedures.

2. Inventory evaluation

Please refer to Note 4.(9) of the parent company only financial statements for the accounting policy of inventory evaluation. please refer to Note 5.(2)(C) of the parent company only financial statements for the major sources of uncertainty of significant estimates and assumptions. Please refer to Note 6.(5) of the parent company only financial statements for inventory details.

G-SHANK is mainly engaged in the production and sale of molds and stamping parts with the production and sales policies formed that are indirectly affected by the needs of end-user. The cost of inventory could be un-recoverable due to the occurrence of inventory damaged, outdated, or price dropped entirely or partially; also, when the estimated cost to be invested to completion and the estimated sale expenses increased. The use and value of inventories rely on the management’s inventory policy and sale forecast. However, a forecast comes with uncertainties. Therefore, the independent director has the inventory evaluation classified as one of the key audit matters in auditing the parent company only financial statements of G-SHANK.

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A decisive factor in the value of inventories is the estimated net realizable value, which is based on the most reliable evidence of the expected realizable amount of inventories available at the time of estimation. Therefore, the relevant audit procedures of the independent auditor include reviewing and assessing whether the policy of G-SHANK in determining the net realizable value of inventories can reasonably reflect the forecast of future inventory sales, historical experience and other specific circumstances, inventory aging analysis and testing so to identify whether an allowance for inventory loss in valuation is appropriated reasonably according to historical experience for a specific obsolete inventory, the correlation between the assessment of past events and the yearend situation, and the impact of the price or cost fluctuation related to the said post events on the net realizable value of inventory.

Other matters

Regarding the parent company only financial report of G-SHANK and the relevant information of the investee company disclosed in Note 13. of the parent company only financial report, the financial statements as of December 31, 2023, and 2022 of G-SHANK, INC. are prepared in conformity with the generally accepted principles of the USA, the financial statements as of December 31, 2023, and 2022 of GREAT-SHANK CO., LTD. are prepared in conformity with the generally accepted principles of Thailand, and the financial statements as of December 31, 2023, and 2022 of G-SHANK ENTERPRISE (M) SDN. BHD. are prepared in conformity with the generally accepted principles of Malaysia, which were audited by other certified public accountants instead of the independent auditor. The financial statements of G-SHANK, INC., GREAT-SHANK CO., LTD., and G-SHANK ENTERPRISE (M) SDN. BHD. are translated in conformity with the “Regulations Governing the Preparation of Financial Reports by Securities Firms” and International Financial Reporting Standards (IFRS) that was recognized by the Financial Supervisory Commission, International Accounting Standards, Interpretations, and Notices (IFRS), Interpretation (IFRIC) and Interpretative Announcement (SIC). The independent auditor has completed all necessary auditing procedures. Therefore, the opinions of the independent auditor on the unadjusted amounts in the aforementioned financial statements of the subsidiaries are based on the audit reports of other certified public accountants and the results of additional audit procedures performed by them in compliance with the “Regulations Governing the Preparation of Financial Reports by Securities Firms” and generally auditing principles of the ROC. The total assets of the aforementioned subsidiaries were NT$916,473 thousand and NT$909,365 thousand on December 31, 2023, and 2022, accounting for 10.86% and 11.06% of the total parent company only assets, respectively. The net operating income from January 1 to December 31, 2023, and 2022 were NT$115,485 thousand and NT$73,822 thousand, accounting for 13.49% and 6.82% of the parent company only net operating income, respectively. Recognized the other comprehensive profit and loss of the subsidiaries and affiliated companies for an amount of NT$(5,444) thousand and NT$59,367 thousand, accounting for (0.82)% and 6.25% of the total comprehensive profit and loss, respectively.

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Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

The responsibility of the management is to have the parent alone financial report prepared fairly in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Firms” and maintain the necessary internal control related to the preparation of the parent alone financial report so to assure that the financial report is free of material misstatement.

In the preparation of the parent company only financial statements, the management’s responsibility also includes assessing the continuing operation of G-SHANK, the disclosure of the relevant matters, and the adoption of the continuing operation accounting base, unless the management intends to liquidate G-SHANK or cease the business operation, or there is lack of any option except for liquidation or suspension.

The governance unit (including the Audit Committee or supervisors) of G-SHANK is responsible for supervising the financial reporting process.

Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements

The purpose of the independent auditor’s auditing of the parent company only financial statements is to obtain reasonable assurance about whether the parent company only financial statements are free of material misstatement arising from frauds or errors and with an audit report issued. Reasonable assurance means high assurance. However, the audit conducted in accordance with generally accepted auditing standards does not guarantee to have any material misstatement in the parent company only financial statements detected. Material misstatement could be arising from frauds or errors. If the misstated amount or aggregated amount is reasonably expected to affect the economic decisions made by the readers of the consolidated financial statements, it is considered significant.

The independent auditors when conducting the audit in accordance with generally accepted auditing standards shall exercise professional judgment and maintain professional suspicion. The independent auditors also perform the following auditing tasks:

1. Identify and evaluate the risk of material misstatement arising from frauds or errors of the parent company only financial statements; design and implement proper responsive measures for the assessed risks; also, obtain sufficient and adequate audit evidence for forming an audit opinion. Frauds may involve conspiracy, forgery, deliberate omission, false declaration, or violation of internal control; therefore, the risk of material misstatement arising from fraud is higher than that caused by errors.

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3. Obtain the necessary understanding of the internal control related to the audit in order to design appropriate audit procedures under the circumstance, but the purpose is not to express an opinion on the effectiveness of the internal control of G-SHANK.

4. Assess the appropriateness of the accounting policies adopted by the management; also, the reasonableness of the accounting estimates and related disclosures made.

5. Based on the audit evidence obtained, make conclusions on the suitability of the continuing operation accounting base adopted by the management and whether or not the events or circumstances causing significant doubts to the continuing operation ability of G-SHANK are with significant uncertainties. If the independent auditors believe that such events or circumstances are with significant uncertainties, it is necessary to remind the readers of the parent company only financial statements in the audit report to pay attention to the relevant disclosure or to revise the audit opinion when such disclosures are inappropriate. The conclusion of the independent auditors is based on the audit evidence obtained as of the audit report date. However, future events or circumstances may result in the inability of G-SHANK to continue operating.

6. Assess the overall presentation, structure, and content of the parent company only financial statements (including the relevant notes) and whether or not the relevant transactions and events in the consolidated financial statements are presented fairly.

7. Obtain sufficient and appropriate audit evidence on the financial information of the individual business entity within the G-SHANK in order to express an opinion on the parent company only financial statements. The independent auditors are responsible for guiding, supervising, and implementing the auditing process of the G-SHANK; also, are responsible for forming an opinion on the audit of the G-SHANK.

The matters communicated by the independent auditors to the governing unit include the scope and timing of the planned audit, and the significant findings (including the major nonconformities of internal controls identified in the auditing process).

The independent auditors have provided to the governing unit the declaration of independence of the CPA Firm personnel subject to the Code of Ethics; also, have communicated with the governing unit regarding the relationship and other matters (including the relevant protection measures) that may affect the independence of the independent auditors.

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The independent auditors have based on the communications with the governing unit to determine the key audit matters to be performed on the 2023 parent company only financial statements of G-SHANK. The independent auditors shall state the key audit matters in the audit report except for the specific matters prohibited from being disclosed, or, in rare cases; the independent auditors decide not to have specific matters communicated in the audit report since the negative effect of such disclosure can be reasonably expected to be greater than the increase of public interest.

Chiung-hui Tseng Pin-chueh Li

Diwan & Company March 8, 2024

Notice to Readers

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

For the convenience of readers, the independent auditors' report and the accompanying consolidated financial statements have been translated into English form the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-lnguage independent auditors' report and consolidated financial statements shall prevail.

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G-SHANK ENTERPRISE CO., LTD.

PARENT COMPANY ONLY BALANCE SHEET

(December 31, 2023 & 2022 have been audited)

(In Thousands of New Taiwan Dollars)

			(In Thousands	(In Thousands	of New Taiwan Dollars)	of New Taiwan Dollars)
ASSETS		Notes	December 31,2023		December 31,2022
Code	Accounts		AMOUNT	%	AMOUNT	%
11xx 1100 1110 1150 1170 1180 1200 1210 130x 1470 1476 15xx 1517 1550 1600 1780 1840 1915 1920 1990 1xxx	Current assets Cash and cash equivalents Financial assets at fair value through profit or loss - current Notes receivable, net Accounts receivable, net Accounts receivable- related parties Other receivables Other receivables - related parties Inventory Prepayments and Other current assets Other financial assets-current Total current assets Noncurrent Asset Financial assets at fair value through other comprehensive income - noncurrent Investments accounted for using equity method Property, Plant and Equipment Intangible assets Deferred tax assets Prepayments for business facilities Refundable deposits Other noncurrent assets, others Total noncurrent Asset Total Assets	4 & 6.(1) 4 & 6.(2) 4, 5, 6.(3) & 6.(4) 4, 5 & 6.(4) 4, 5 & 7 4, 5 & 6.(4) 4, 5 & 7 4, 5 & 6.(5) 4 & 6.(6) 4, 5, 6.(7) & 6.(19) 4 & 6.(8) 4,5,6.(9) & 9 4 & 6.(10) 4 & 6.(26) 4 & 9.	619,238 $ 1,320,131 4,095 430,952 2,026 30,111 950 188,278 9,613 7,637 2,613,031 320,903 4,699,117 477,830 492 13,194 311,081 499 4,978 5,828,094 8,441,125 $	7 16 - 5 - 1 - 2 - - 31 4 56 5 - - 4 - - 69 100	1,324,890 $ 762,585 2,897 562,036 4,111 24,990 2,419 260,132 5,893 7,383 2,957,336 262,023 4,470,257 484,726 956 25,865 13,135 635 5,178 5,262,775 8,220,111 $	16 9 - 7 - - - 3 - - 36 3 54 6 - - - - - 64 100
(CONTINUING)

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

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G-SHANK ENTERPRISE CO., LTD.

PARENT COMPANY ONLY BALANCE SHEET

(December 31, 2023 & 2022 have been audited)

			(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)
Liabilities and Equity		Notes	December 31,2023		December 31,2022
Code	Accounts		AMOUNT	%	AMOUNT	%
21xx 2100 2130 2170 2180 2200 2220 2230 2322 2300 25xx 2540 2570 2640 2645 2xxx 31xx 3100 3110 3140 3200 3300 3310 3320 3350 3400 3410 3420 3xxx	Current liabilities Short-termloans Contract liabilities - current Accounts payable Accounts payable-related parties Other payables Other payables-related parties Current tax liabilities Current portion of long-term loans payable Other current liabilities Total current liabilities Non-current liabilities Long-termloans Deferred tax liabilities Net defined benefit liabilities- noncurrent Guarantee deposits Total non-current liabilities Total liabilities Equity attributable to owners of parent Share capital Ordinary shares Advance Receipts for Capital Stock Capital surplus Retained earnings Legal reserve Special reserve Unappropriated earnings Other equity Exchange differences on translation of foreign financial statements Unrealised gains (losses) from financial assets measured at fair value through other comprehensive income Total Equity Total liabilities and equity	4, 6.(11) & 6.(28) 4 & 6.(21) 4 4 & 7 4, 6.(9), 6.(13) & 6.(22) 4 & 7 4 & 6.(26) 4,6.(12) & 6.(28) 4, 6.(12) & 6.(28) 4 & 6.(26) 4, 5 & 6.(13) 4, 6(14),6.(20) & 11 4, 6.(15), 6(18), 6(20) & 11 6.(16) & 6.(18) 6.(17) 4, 6.(18) & 11 4, 6.(8), 6.(19) & 6.(25) 4, 6.(7), 6.(8), 6.(19) & 6.(25)	1,210,000 $ 6,497 149,351 2,041 275,060 2,706 13,166 - 6,789 1,665,610 - 674,593 29,956 3,061 707,610 2,373,220 1,906,543 1,900 489,905 981,760 284,690 2,512,565 (409,638) 300,180 6,067,905 8,441,125 $	15 - 2 - 3 - - - - 20 - 8 - - 8 28 23 - 6 12 3 30 (5) 3 72 100	1,070,000 $ 9,033 209,214 11,528 299,216 3,667 53,630 38,735 10,985 1,706,008 40,297 616,436 31,929 4,646 693,308 2,399,316 1,897,843 8,700 472,021 892,927 284,690 2,365,496 (338,584) 237,702 5,820,795 8,220,111 $	13 - 3 - 4 - 1 - - 21 - 8 - - 8 29 23 - 6 11 3 29 (4) 3 71 100

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

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G-SHANK ENTERPRISE CO., LTD.

PARENT COMPANY ONLY STATEMENT OF COMPREHENSIVE INCOME

(In Thousands of New Taiwan Dollars, except for earnings per share amounts)	(In Thousands of New Taiwan Dollars, except for earnings per share amounts)	(In Thousands of New Taiwan Dollars, except for earnings per share amounts)	(In Thousands of New Taiwan Dollars, except for earnings per share amounts)	(In Thousands of New Taiwan Dollars, except for earnings per share amounts)	(In Thousands of New Taiwan Dollars, except for earnings per share amounts)	(In Thousands of New Taiwan Dollars, except for earnings per share amounts)
Code	Accounts	Notes	For the years ended December 31,
			2023	%	2022	%
4000 5000 5900 6000 6100 6200 6300 6450 6500 6900 7000 7100 7010 7020 7050 7070 7630 7900 7950 8200 8300 8310 8311 8316 8330 8349 8360 8380 8399 8500 9750 9850	Sales revenue Operating costs Gross profit from operations Operating expense Selling and marketing expenses General and administrative expenses Research and development expenses Loss (reversal) of expected credit loss Total operating expense Other operating income and expenses, net Net operating income (loss) Non-operating income and expenses Interest income Other income Other gains and losses Finance costs Share of the profit (loss) of associates and subsidiaries for using equity method Foreign exchange gains (loss) Total non-operating income and expenses Profit (loss) from continuing operations before tax Income Tax Expense Profit (loss) for the period Other comprehensive income Components of other comprehensive income that will not be reclassified to profit or loss： Remeasurements of the defined benefit plan Unrealised gain (loss) on financial assets measured at fair through other comprehensive income Share of the other comprehensive (loss) income of associates for using equity method-will not be reclassified to profit or loss Income tax benefit (expense) relating to items that will not be reclassified subsequently to profit or loss Other comprehensive income (loss) that will not be reclassified to profit or loss Items that may be reclassified subsequently to profit or loss： Share of the other comprehensive income of subsidiaries and associates for using equity method-will may be reclassified subsequently to profit or loss Income tax expense relating to items that may be reclassified subsequently to profit or loss Total items that may be reclassified subsequently to profit or loss Total other comprehensive income (loss) for the period Total comprehensive income for the period Earnings per share (dollar) Basic Diluted	4, 6.(21) & 7 4, 6.(5), 6.(13), 6.(22),6.(29) & 7 4, 6.(13), 6.(22), 6.(29) & 7 4, 5 & 6.(4) 4, 6.(9), 6.(22) & 6.(23) 6.(24) & 7 6.(7), 6.(24) & 7 6.(2) & 6.(24) 4 & 6.(24) 4, 6.(8) & 6.(24) 4 & 6.(24) 4 & 6.(26) 4, 6.(7),6.(8), 6.(13), 6.(19) & 6.(25) 4 & 6.(27)	1,942,821 $ (1,583,842)	100 (82) 18 (5) (8) (3) - (16) - 2 6 4 3 (1) 29 1 42 44 (9) 35 - 3 - - 3 (4) - (4) (1) 34	2,395,398 $ (1,837,583)	100 (77) 23 (4) (7) (2) - (13) - 10 3 4 - - 26 2 35 45 (9) 36 1 (1) - - - 4 - 4 4 40
			358,979 (96,846) (166,323) (50,597) (192) (313,958) 383 45,404 116,788 79,588 62,976 (18,304) 558,304 11,525 810,877 856,281 (181,241) 675,040 (596) 58,880 3,561 - 61,845 (71,054) - (71,054) (9,209) 665,831 $ 3.54 $ 3.49 $		557,815 (103,916) (158,288) (49,114) 639 (310,679) 383 247,519 76,961 104,905 (13,650) (13,906) 621,399 59,020 834,729 1,082,248 (214,645) 867,603 20,496 (37,315) (4,046) - (20,865) 103,268 - 103,268 82,403 950,006 $ 4.58 $ 4.49 $

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

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G-SHANK ENTERPRISE CO., LTD.

PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY

(In Thousands of New Taiwan Dollars)

Accounts				Equity Attributable to Owners of the Corporation	Equity Attributable to Owners of the Corporation	Equity Attributable to Owners of the Corporation
	Share Capital		Capital Surplus		Retained Earnings		Other	Equity	Total
	Ordinary Shares	Advance Receipts for Capital Stock		Legal Reserve	Special Reserve	Unappropriated Earnings	Exchange Differences on Translating Foreign Operations	Unrealized Gains and Losses on Financial Assets at Fair Value Through Other Cpmprehensive Income
BALANCE AT JANUARY 1, 2022 Appropriation of 2021 earnings (Note 6.(18)) Legal reserve Cash dividends to ordinary shareholders Share of the other comprehensive income of associates disposal equity instruments designated as at fair value hrough other comprehensive income Received donation from shareholders Net profit for 2022 Other comprehensive income for 2022 Total comprehensive income for 2022 Share-based payment expenses BALANCE AT DECEMBER 31, 2022 Appropriation of 2022 earnings (Note 6.(18)) Legal reserve Cash dividends to ordinary shareholders Share of the other comprehensive income of associates disposal equity instruments designated as at fair value hrough other comprehensive income Received donation from shareholders Net profit for 2023 Other comprehensive income for 2023 Total comprehensive income for 2023 Share-based payment transaction BALANCE AT DECEMBER 31, 2023	1,878,323 $ - - - - - - - 19,520 1,897,843 $ - - - - - - - 8,700 1,906,543 $	$ - - - - - - - - 8,700 8,700 $ - - - - - - - (6,800) 1,900 $	452,744 $ - - 15 27 - - - 19,235 472,021 $ - - 296 55 - - - 17,533 489,905 $	827,106 $ 65,821 - - - - - - - 892,927 $ 88,833 - - - - - - - 981,760 $	284,690 $ - - - - - - - - 284,690 $ - - - - - - - - 284,690 $	1,937,433 $ (65,821) (394,447) - - 867,603 20,728 888,331 - 2,365,496 $ (88,833) (438,505) - - 675,040 (633) 674,407 - 2,512,565 $	(441,852) $ - - - - - 103,268 103,268 - (338,584) $ - - - - - (71,054) (71,054) - (409,638) $	279,295 $ - - - - - (41,593) (41,593) - 237,702 $ - - - - - 62,478 62,478 - 300,180 $	5,217,739 $ - (394,447) 15 27 867,603 82,403 950,006 47,455 5,820,795 $ - (438,505) 296 55 675,040 (9,209)
									665,831 19,433 6,067,905 $

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

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G-SHANK ENTERPRISE CO., LTD. PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

		(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)
Description		2023		2022
CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax from continuing operations Adjustments for The profit or loss items which did not affect cash flows: Depreciation Amortization Expected credit (profit) loss Net loss on financial assets and liabilities at fair value through profit or loss Interest expenses Interest income Dividends income Share-based payment expenses Share of profit of subsidiaries and associates ventures accounted for using the equity method Profit on disposal of property, plant and equipment Unrealized foreign exchange losses Other item Changes in operating assets and liabilities： Financial assets at fair value through profit or loss Notes receivables Accounts receivable Accounts receivable-related parties Other receivables Other receivables -related parties Inventories Prepayments and Other current assets Current contract Accounts payable Accounts payable-related parties Other payables Other payables-related parties Other current liabilities Net defined benefit liabilities Cash inflows and outflows generated from operating activities: Interest received Dividends received Interest paid Income tax paid Net cash inflows and outflows from operating activities		856,281 $ 65,911 4,492 192 (62,757) 18,304 (116,788) (9,500) 15,766 (558,304) (219) 6,929 (1,585) (494,789) (1,198) 126,163 2,016 (6,515) 1,447 67,304 (3,720) (2,536) (59,862) (9,455) (20,632) (960) (4,196) (2,569) (190,780) 118,182 9,500 (17,989) (150,877) (231,964)		1,082,248 $ 56,410 12,051 (639) 14,403 13,906 (76,961) (13,571) 5,595 (621,399) (753) 4,020 - 169,812 967 (2,430) 4,220 (89) (700) (4,190) 1,775 9,033 4,787 6,761 (25,657) (358) (5,376) (9,589) 624,276 73,425 13,571 (13,629) (148,605) 549,038

(Continuing)

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G-SHANK ENTERPRISE CO., LTD. AND SUBSIDIARIES

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

		(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)
Description		2023		2022
CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of investments accounted for using equity method Cash dividends issued by investee companies using equity method Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Increase in refundable deposits Other receivables -related parties -decrease in funds loan Acquisition of intangible assets Decrease in other current financial assets Increase in other noncurrent assets Increase in prepayments for business facilities Net cash provided by investing activities CASH FLOWS FROM FINANCING ACTIVITIES Increase (Decrease) in Short-term borrowings Increase in long-term borrowings Repayment of long-term borrowings Payment of cash dividends Employee exercise of stock warrant Other financing activities Net cash (used in) provided by financing activities Effect of changes in exchange rate on cash and cash equivalents Net (decrease) increase in cash and cash equivalents Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period		- $ 262,247 (45,192) 242 136 - (281) (135) (3,547) (311,081) (97,611) 140,000 - (79,032) (438,505) 3,667 55 (373,815) (2,262) (705,652) 1,324,890 619,238 $		(2,809) $ 351,183 (96,779) 753 (155) 19,390 (600) 18,328 (8,900) (366) 280,045 (190,000) 2,708 - (394,447) 41,860 27 (539,852) (2,730) 286,501 1,038,389 1,324,890 $

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

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G-SHANK ENTERPRISE CO., LTD. NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022 (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

1. COMPANY HISTORY

G-SHANK ENTERPRISE CO., LTD. (hereinafter referred to as “the company”) was approved for incorporation on November 14, 1973. The company was registered and operated at No. 1, Jiuzhou Road, Jiudou Li, Hsinwu District, Taoyuan City for the production and sales of molds, stamping parts, fixtures and tools, automatic machines and electrical appliances, and mechanical components.

The company’s stock had been listed for trade on the “Taipei Exchange, TPEx” since February 1998, then have been listed for trade on the “Taiwan Stock Exchange Corporation, TWSE” since September 2001.

The company’s board of directors had resolved on October 22, 2007 for the merger of the company and the subsidiary “HON YEH INVESTMENT CO., LTD.” (Referred to as “HON YEH” hereinafter) with “HON YEH” discontinued and the company continues to operate. The name of the merged company is “G-SHANK ENTERPRISE CO., LTD.” still with the merger base date scheduled on December 1, 2007.

“HON YEH,” the discontinued company, was approved for incorporation on February 24, 1998 for the operation of a general investment business.

2. FINANCIAL REPORT APPROVAL DATE AND PROCEDURE

The parent company only financial reports of the company (hereinafter referred to as “the company”) for the years ended December 31, 2023 and 2022 were submitted to the company’s board of directors on March 8, 2024 and then published lawfully.

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Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

3. APPLICATION OF THE NEWLY ANNOUNCED AND AMENDED REGULATIONS AND INTERPRETATIONS

• (1) The new/amended/revised regulations and interpretations that have been adopted and approved by the Financial Supervisory Commission (FSC) and published to take effect.

Since January 1, 2023, the company has been applying the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), interpretations, and interpretation announcements disclosed on the website of the Securities and Futures Bureau of the Financial Supervisory Commission (FSC) applicable for the year 2023. There has been no significant impact on the company's individual financial statements.

• (2) The International Accounting Standards Board (IASB) has issued and the Financial Supervisory Commission (FSC) has approved the new/amended/revised standards and interpretations that will be applicable in the year 2024.

New/Revision/Amendme nt Standards and Explanations IAS 1 (amendments) IAS 1 (amendments) IAS 7 and IFRS 7 (amendments) IFRS 16 (amendments)	Content	Effective in the annual period commencing from the followingdate of IASB
	Classification of liabilities as current or non-current Non-current liabilities with contractual terms Supplier Financing Arrangement Lease Liability in a Sale and Leaseback	January 1, 2024 January 1, 2024 January 1, 2024 January 1, 2024

The management of the company believes that the amendments to the aforementioned standards will not have a significant impact on the company's individual financial statements.

• (3) The new/amended/revised standards and interpretations announced without effect by IASB and not yet recognized by the FSC

• 15 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

New/Revision/Amendme nt Standards and Explanations IFRS 10 and IAS 28 (amendments) IFRS 17 IFRS 17 (amendments) IFRS 17 (amendments) IAS 21 (amendments)	Content Sale or investment of assets between investors and their affiliated enterprises or joint ventures Insurance contracts Amendments to IFRS 17 First-time application of IFRS 17 and IFRS 9 - comparative information Lack of Exchangeability	Effective in the annual period commencing from the followingdate of IASB
		To be determined by IASB January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2025

The company's management believes that the amendments to the aforementioned standards will not have a significant impact on the company's individual financial statements.

4. SUMMARY OF MAJOR ACCOUNTING POLICIES

The significant accounting policies adopted for the preparation of the individual financial statements are summarized as follows, and unless otherwise indicated, these accounting policies are consistently applied to all reporting periods ：

(1) Financial report preparation and measurement basis

(A) Statement of Compliance

The individual financial statements of the Company are prepared in accordance with the Financial Reporting Standards for Issuers of Securities (hereinafter referred to as the "Reporting Standards").

(B) Measurement basis

• (a) According to Article 21 of the “Regulations Governing the Preparation of Financial Reports by Securities Firms,” the profit and loss and other comprehensive profit and loss of the company’s parent only financial statements shall be the same as the amortized amount of the profit and loss and other comprehensive profit and loss attributable to the shareholders of the parent company in the consolidated financial statements. Also, the shareholders’ equity

• 16 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

in the parent alone financial statements shall be the same as the shareholders’ equity attributable to the parent company in the consolidated financial statements. Therefore, investments in subsidiaries are included in “investments under the equity method” in the parent-alone financial statements with necessary evaluation adjustments made.

• (b) Except for the financial instruments measured at fair value, this parent company only financial report is prepared on the basis of historical cost. For assets, the historical cost refers to the cash, cash equivalents, or the fair value of other considerations paid to obtain assets. For liabilities, the historical cost refers to the amount received when assuming obligations or the amount expected to be paid for liquating liabilities.

(C) Functional and reporting currency

The functional currency of each business entity of the Company is the currency used in the main economic environment where it operates. This parent company only financial report is prepared in New Taiwan Dollar that is the functional currency of the company. All financial information prepared in New Taiwan Dollar is in the unit of “NT$ Thousand,” unless otherwise specified.

(2) Criteria for the classification of current and noncurrent assets and liabilities

• (A) Current assets include cash and cash equivalents (except for those that cannot be exchanged or used for liquidating liabilities within 12 months after the reporting period), assets held primarily for trading purposes, and assets expected to be realized within 12 months after the reporting period or assets expected to be realized, sold, or consumed within the regular business cycle. Assets other than current assets are classified as noncurrent assets.

• (B) Current liabilities include liabilities held primarily for trading purposes, liabilities that are expected to be settled within 12 months after the reporting period or liabilities expected to be settled within the regular business cycle, and liabilities that cannot be unconditionally deferred for 12 months after the reporting period. Liabilities other than current liabilities are classified as noncurrent liabilities.

• 17 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(3) Foreign currency transactions and conversion of foreign operating entities

• (A) New Taiwan Dollar (NTD) is the Company’s functional currency that is also applied for the presentation of the parent company only financial statements. The Company’s originally recognized foreign currency transactions are booked by having the foreign currency converted into the functional currency at the spot exchange rate between the functional currency and the foreign currency on the trade date. Monetary items in foreign currency are translated at the closing exchange rate on the reporting date; non-monetary items in foreign currency that are measured at historical cost are not retranslated on the reporting date; non-monetary items in foreign currency that are measured at fair value are translated according to the exchange rate on the date the fair value is determined. The exchange difference of monetary items is recognized as profit and loss upon occurrence. When the profit or loss of non-monetary items is recognized as other comprehensive profit and loss, the exchange component of the profit or loss is also recognized as other comprehensive profit and loss. When the profit or loss of non-monetary items is recognized as profit and loss, the exchange component of the profit or loss is also recognized as profit and loss.

• (B) The assets and liabilities of foreign operating entities, including goodwill arising from acquisitions and fair value adjustments to the book value of the assets and liabilities acquired, are presented in their functional currency. When the functional currency is different from the presentation currency in a non-highly inflationary economy, the financial performance and financial position are converted into the presentation currency according to the following procedures:

• (a) The assets and liabilities on each balance sheet are translated at the closing exchange rate on the reporting date.

• (b) The income and expenses on each consolidated income statement are translated at the average exchange rate of the current period; however, if the exchange rate fluctuates significantly, the exchange rate on the trade date shall prevail.

• (c) All exchange differences arising from translation are recognized in “other comprehensive profit and loss.”

When the control over a subsidiary or the influence on the affiliated enterprise is lost due to the disposal of a foreign operating entity, the accumulated exchange differences related to the foreign operating entity that has been previously recognized in “ other comprehensive profit and loss” and accumulated to the equity shall be

• 18 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

reclassified from equity to profit and loss at the time of recognizing disposal profit and loss. If the control is not lost while disposing of subsidiaries partially that include a foreign operating entity, the accumulated exchange differences recognized in other comprehensive profit and loss will be re-classified to the non-controlling interests of the foreign operating entity proportionally. If the significant influence is not lost while disposing subsidiaries partially that includes an affiliated enterprise of the foreign operating entity, the accumulated exchange differences recognized in other comprehensive profit and loss will be re-classified to the profit and loss proportionally.

If there is not a payment plan in place for the monetary receivables or payables with the foreign operating entity, and it is unlikely to have them paid off in the near future, it will be treated as part of the net investment in the said foreign operating entity; also, the exchange difference resulted thereafter will be recognized in the “other comprehensive profit and loss.”

(4) Cash and cash equivalents

It refers to the cash on hand, demand deposits, and short-term and highly liquid time deposits or investments that can be converted into a fixed amount of cash at any time with little risk of value change, and it is held to meet short-term cash commitments other than for investment or other purposes.

(5) Financial instruments

• (A) When the parties to the financial instrument contract have financial assets or financial liability recognized in the balance sheet, and when a financial asset is purchased or sold in an arms-length transaction, an equity instrument should be processed according to the trade day accounting; however, a debt instrument, beneficiary certificate, and derivatives should be processed according to the settlement date accounting.

• (B) The financial asset or financial liability is measured at fair value when it is initially recognized; however, for those that are not measured at fair value through profit and loss, the transaction cost for the acquisition or issuance should be included.

• (C) The components of the financial instruments issued by the Company are classified as financial liabilities, financial assets, or equity instruments at the initial recognition in accordance with the substance of the contractual agreement and the definitions of

• 19 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

financial liabilities, financial assets, and equity instruments.

• (D) Financial assets and financial liabilities are offset against each other and presented in a net amount on the balance sheet only when the GROUP has a legally enforceable right, intends to have it settled at a net amount, or to realize the asset and settle the liability simultaneously.

• (E) The Company’s financial instruments are as follows:

• (a) Financial assets measured at fair value through profit and loss

  • Financial assets measured at fair value through profit and loss include financial assets that are mandated to be measured at fair value through profit and loss and that are designated to be measured at fair value through profit and loss. Financial assets that are mandated to be measured at fair value through profit and loss include the Company’s investments in equity instruments not designated to be measured at fair value through other comprehensive profit and loss and investment in debt instruments that are not classified to be measured at amortized cost or measured at fair value through other comprehensive profit and loss. The profit or loss arising from the financial assets measured at fair value through profit and loss is recognized in profit and loss.

• (b) Financial assets measured at amortized cost

  • Financial assets that meet both of the following conditions and are not designated to be measured at fair value through profit or loss are to be measured at amortized cost, including cash and cash equivalents, notes receivable, accounts receivable, financial assets measured at amortized cost, other financial assets, and other receivable on the balance sheet:

  • (i) The financial asset is held solely for the purpose of collecting contractual cash flows.

  • (ii) The contractual terms of the financial asset are to generate cash flows on specific dates for the sole purpose of paying back outstanding principal and interest.

For financial assets measured at amortized cost, after initial recognition, it is measured at the cost derived from the total book amount determined with an effective interest method net of the amortized impairment loss. The profit or loss derived from delisting, through amortization procedure, or recognizing impairment profit or loss should be recognized in the profit and loss.

• 20 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(c) Financial assets measured at fair value through other comprehensive profit and loss

It refers to the investment in debt instruments that meet both of the following conditions and are not designated to be measured at fair value through profit or loss; or, the investment in equity instrument that is not held for trading purpose and is with the change in fair value booked in the “other comprehensive profit or loss,” which is an irrevocable decision made at the initial recognition:

• (i) The financial asset is held for the purposes of collecting contractual cash flows and for sale.

• (ii) The contractual terms of the financial asset are to generate cash flows on specific dates for the sole purpose of paying back outstanding principal and interest.

It is measured at fair value subsequently; also, the changes in its value, except for the impairment loss of investment in debt instrument, exchange profit and loss of monetary financial assets, interest calculated with the effective interest method, and dividends from the investment in equity instrument that is not conspicuously representing the investment cost recovery, should be recognized in other comprehensive profit and loss before delisting or reclassification. For the accumulated profit or loss previously recognized in other comprehensive profit and loss at the time of delisting, the investment in debt instrument is reclassified from equity to profit and loss; and the investment in equity instrument is reclassified to retained earnings. In addition, the dividends from the investment in equity instrument are recognized when the right to receive dividends is acquired.

(d) Financial liabilities measured at amortized cost

Financial liabilities that are not measured at fair value through profit or loss are financial liabilities measured at amortized cost, including short-term loans, accounts payable, other payables, long-term loans, and lease liabilities, which are measured at the amortized cost derived with the use of the effective interest method; however, short-term payables without interest paid, if it is without the significant impact of discounting, are measured at the original transaction amount.

• 21 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(e) The non-hedging derivatives and embedded derivatives

• The non-hedging derivatives are initially recognized at fair value at the time of signing a contract, and are subsequently measured at fair value on the balance sheet date. The profit or loss resulting from subsequent measurement is directly recognized as profit and loss; however, the timing for recognizing the profit or loss of the derivatives that are designated as effective hedging instruments depends on the nature of the hedging relationship. When the fair value of derivatives is positive, it is classified as a financial asset. When the fair value is negative, it is classified as a financial liability. If the derivatives embedded in the master contract are classified as a financial asset subject to IFRS 9 “Financial Instruments” (hereinafter referred to as IFRS 9), the classification of financial assets is determined according to the terms of the overall hybrid contract. If the derivatives embedded in the master contract are not classified as a financial asset subject to IFRS 9 “Financial Instruments,” it is necessary to assess whether the embedded derivative instrument is closely related to the master contract. If not, the embedded derivatives should be separated from the master contract and processed as derivatives unless the overall hybrid contract is measured at fair value through profit and loss.

(6) Measurement at fair value

• (A) The fair value is the price that the assets could be sold or liabilities could be transferred in an orderly arm’s-length transaction that is fair for both the buyer and the seller on the measurement date. The structure of fair value measurement is with the characteristics of a particular asset or liability taken into consideration, including the condition and location of the asset, and the restrictions on the sale or use of the asset, and assuming that the sale of the asset or the transfer of the liability occurs in the primary market where it belongs, or, if there is no primary market available, occurs in the most favorable market for the asset or liability; the aforementioned primary market or the most favorable market must be accessible to the Company for trading; also, assumes that the market participants have the price determined based on their best economic interests.

For the non-financial asset measured at fair value, the consideration is whether a market participant has exhausted the good use of the asset or sold the asset to another market participant who will exhaust the good use of the asset in order to generate economic benefits.

• 22 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

• (B) The fair value measured with a valuation technique means it is measured with an appropriate valuation technique with sufficient information available under the circumstances, including maximized relevant observable inputs and minimized unobservable inputs.

(7) Delisting of financial assets and liabilities

(A) Financial assets

Financial assets are delisted and the rights and obligations resulted or retained from such transfer will be recognized as assets or liabilities only when the contractual rights to the cash flows derived from the financial asset are terminated, or, the financial asset has been transferred along with almost all risks and rewards related to the ownership of the asset, or, almost all risks and rewards related to the ownership of the financial asset have not been transferred nor retained and without control over the financial asset. The difference between the book value of the delisted portion of financial assets measured at amortized cost and the consideration received is recognized in profit and loss on the delisting day. The difference between the book value of the investment in equity instrument measured at fair value through other comprehensive profit and loss and the sum of the consideration received and the cumulative profit or loss recognized in other comprehensive profit and loss is recognized in retained earnings; however, the investment in debt instrument is recognized in profit and loss. For the financial assets not delisted entirely, the respective book value is amortized based on the relative fair value of the continuously recognized portion of the assets. If a financial asset does not qualify for the de-listing transfer, the entire transferred asset is recognized continuously, and the consideration received is recognized as a financial liability.

(B) Financial liabilities

Financial liabilities are delisted entirely or partially only when the contractual obligations are performed, canceled, or expired with the financial liabilities eliminated. If the debtor and creditor have the debt instrument containing significantly different terms exchanged or have the incumbent financial liabilities terms modified entirely or partially, the incumbent financial liability is delisted and a new financial liability is recognized simultaneously. The difference between the book value of a financial liability that is eliminated or transferred to another party entirely or partially and the consideration paid is recognized in profit and loss.

• 23 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(8) Asset impairment

• (A) Impairment of financial assets

• (a) The Company has allowances recognized for expected credit loss derived from the financial assets measured at amortized cost (including cash and cash equivalents, financial assets measured at amortized cost, other financial assets, notes receivable, accounts receivable, other receivables, etc.).

• (b) The Company has the expected credit loss of financial assets measured by reflecting the amount determined with an unbiased and probability-weighted method after evaluating all possible results, the time value of money, and reasonable and verifiable information related to past events, current conditions, and forecasts of future economic conditions (available on the reporting day without excessive cost or investment). Except for notes receivable, accounts receivable, and other receivables handled with a simplified approach by having the allowance for loss measured at the expected credit loss amount during the duration on the reporting date, for cash and cash equivalents and financial assets measured at amortized cost, if the credit risk on the reporting date is low or the credit risk has not increased significantly since the original recognition, the allowance for loss is measured at the 12-month expected credit loss. If the aforementioned credit risk of financial assets has increased significantly on the reporting date since the original recognition, it is measured at the expected credit loss during the duration.

• (c) The book value of the aforementioned financial assets is adjusted down with the allowance for losses. The appropriation and reversal of the allowance for loss are recognized in profit and loss.

(B) Impairment of non-financial assets

For the assets subject to IAS 36 “Impairment of Assets,” except for goodwill, intangible assets with an undetermined useful life, and intangible assets not yet available for use are with an impairment test performed annually and when there are indications that they may be impaired, the Company assesses assets to determine whether there is any indication of impairment on each reporting date. If there is an indication of impairment, the recoverable amount of the asset is estimated. The recoverable amount refers to the fair value of the assets or the cash-generating unit net of the cost of sales and the values in use whichever is higher. If the recoverable amount of the asset is lower than the book value, the said book value must be reduced to be equal to the recoverable amount and the amount of reduction is the impairment loss that is to be recognized in profit and loss. If there is any indication

• 24 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

of the recovery or decrease of the previously recognized impairment loss of assets, except for goodwill, on the reporting date subsequently, the recoverable amount of the asset should be re-estimated. If the estimated recoverable amount of the assets is increased as a result of a change in the estimation, the impairment loss should be reversed. However, the increased book value of the asset arising from the reversal of the impairment loss shall not exceed the book value of the asset net of the amortization or depreciation, but before recognizing the impairment.

For a cash-generating unit with goodwill amortized, an impairment test is performed by comparing its book value containing the goodwill to its recoverable amount. If the book value of the said unit exceeds the recoverable amount, an impairment loss is recognized. The impairment loss recognized is to be deducted from the cash-generating unit’s book value with goodwill amortized, and the insufficient amount for deduction is allocated to the book value of the respective asset of the unit proportionally. The recognized impairment loss of goodwill shall not be reversed in the subsequent periods.

(9) Inventory

Inventory cost includes all purchase costs, processing costs, and other costs incurred for bringing the inventory to its current location and condition. It is calculated in accordance with the weighted average cost method to allocate inventory cost. The yearend inventory is measured at the lower cost or net realizable value. The comparison of cost and net realizable value is itemized, except for inventories of the same category. The net realizable value refers to the amount resulted from the estimated selling price in the course of business net of the estimated additional cost to completion and the estimated sales expenses after the completion.

(10) Investments under the equity method

• (A) The Company’s controlled entities are the Company’s subsidiaries. The Company’s investment in subsidiaries is evaluated with the equity method. According to Article 21 of the “Regulations Governing the Preparation of Financial Reports by Securities Firms,” the “investment under the equity method” comes with necessary evaluation adjustments so to have had the profit and loss and other comprehensive profit and loss of the Company’s parent alone financial statements same as the amortized amount of the profit and loss and other comprehensive profit and loss attributable to the shareholders of the parent company in the consolidated financial statements; also, the shareholders’ equity in the parent alone financial statements same as the shareholders’ equity attributable to the parent company in the consolidated financial statements.

• 25 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

• (B) An affiliated enterprise is an entity that is significantly influenced but not controlled by the Company, that is, the Company holds more than 20% but less than 50% of the voting rights of the invested company directly or indirectly, or holds less than 20% of the voting rights but can clearly prove that the Company has a significant influence on the affiliated enterprise. The investment in the affiliated enterprise is valued under the equity method starting from the date when it becomes an affiliated enterprise of the Company.

• (C) The investment under the equity method is recognized at cost initially and adjusted subsequently according to the changes in the ownership of the affiliated enterprise’s net assets proportionally. When the Company’s loss from the ownership of the subsidiaries net assets exceeds the equity owned in the subsidiaries, the loss should be recognized by shareholding proportion continually; When the Company’s loss from the ownership of the affiliated enterprise net assets exceeds the equity owned in the affiliated enterprise, no loss should be recognized further, and the Company will only recognize additional losses and liabilities within the scope of legal obligation, presumed obligation, or payment made on behalf of the affiliated enterprise. If the investment cost exceeds the Company’s share of the net fair value of the identifiable assets and liabilities of the subsidiaries and affiliated enterprise on the acquisition date, the difference is the goodwill related to the subsidiaries and affiliated enterprise that is included in the book value of the investment and shall not be amortized; otherwise, it is to be recognized in profit immediately after the reassessment.

• (D) If the changes in the Company’s ownership interests in subsidiaries do not result in the loss of control, it is to be processed as an equity transaction. The difference between the book value of the investment and the fair value of the consideration paid or received is directly recognized as equity.

• (E) When there is a change in equity that is non-profit and loss and other comprehensive profit and loss occurred to the subsidiaries and affiliated enterprise; also, it does not affect the shareholding ratio of the subsidiaries and affiliated enterprise, the Company will have the change in the equity of the subsidiaries and affiliated enterprise recognized in the “additional paid-in capital” proportionally to the shareholdings.

• 26 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

• (F) When the affiliated enterprise issues new shares, if the Company does not subscribe it proportionally to the shareholdings, resulting in a change in the shareholding ratio and thus causing an increase or decrease in the net equity value of the investment, the increase or decrease amount shall be adjusted to the “investment under the equity method” and “additional paid-in capital” when the significant influence is intact. If the aforementioned adjustment is debited to the “additional paid-in capital,” and there is an insufficient balance of additional paid-in capital from the investment under the equity method, the difference should be debited to the “retained earnings.” However, if it is not subscribed proportionally to the shareholdings and results in a decrease in the ownership interest, in addition to the aforementioned adjustment, the profit or loss related to the decrease in the ownership interest that has been previously recognized in other comprehensive profit and loss, which has also been reclassified to profit and loss when the relevant assets or liabilities are disposed, shall be reclassified to profit and loss proportionally to the decreased amount.

• (G) When the Company loses control or significant influence on subsidiaries and the affiliated enterprise, the Company recognizes the remaining investment in the former subsidiaries and affiliated enterprise at the fair value on the date of losing control or significant influence. The difference between the fair value of the remaining investment and any disposal price and the book value of the investment on the date of losing control or significant influence is recognized in profit and loss. For the amounts recognized in other comprehensive profit and loss related to the subsidiaries and affiliated enterprise, the accounting base is the same as if the related assets or liabilities are disposed directly by the Company.

• (H) The unrealized profit and loss of the transactions conducted between the Company and subsidiaries or affiliated enterprise is written off within the scope of its equity related to the Company.

(11) Property, plant and equipment

• (A) Property, plant and equipment are used for production or labor services, leased to others, or held for management purposes. It is recognized and subsequently measured at cost, which is an amount net of the accumulated depreciation and accumulated impairment losses. The cost of assets refers to the cash, cash equivalents, or the fair value of the consideration paid to acquire or construct the assets, including the cost related to dismantling, removing, and recovering the location. When the useful lives of the significant components of property, plant and equipment are different, it should be processed as an item separated from the property, plant and equipment.

• 27 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

• (B) Property, plant and equipment, except for land, is depreciated in accordance with the straight-line method, over the useful life indicated below. The residual value of assets, useful life, and the depreciation method should be examined at the end of each year. If the expected value is different from the estimation, or the expected consumption pattern of the future economic benefits of the asset has changed significantly, and it becomes necessary to have the depreciation method changed to reflect the changed pattern, such change should be treated as a change in accounting estimate. For the property, plant and equipment with asset impairment losses recognized, the depreciation expense of the asset in the future period shall be adjusted by deducting its residual value from the amended book value of the asset and amortized in accordance with the straight-line method over the remaining useful life:

House, building, and auxiliary equipment	3-50	years
Machinery equipment	2-10	years
Transportation equipment	4-6	years
Office equipment	5	years
Other equipment	3-15	years

• (C) Replacement and significant inspection costs are recognized in the book value of the property, plant and equipment. Routine maintenance expenses incurred are recognized in profit and loss. The cost of loans that are used to acquire, construct, or produce qualified assets is capitalized and incorporated into the cost of the assets.

• (D) The property, plant and equipment are delisted at the book value when it is disposed of or when it cannot generate future economic effect through use or disposition. The profit or loss resulted from the delisting is recognized in profit and loss; also, the profit may not be classified as income.

(12) Lease

(A) The Company is the lessor

When a lease is for the purpose of having the asset ownership and the related substantial risks and rewards transferred to the lessee, it is classified as a financial lease. A lease other than a financial lease is classified as an operating lease.

• 28 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

• (a) The net investment amount in a financial lease is measured at the sum of the present value of the amount payable by the lessee and the unguaranteed residual value plus the original direct cost, which is booked as financial lease receivables. The financial lease income is recognized at a fixed rate of return that reflects the Company’s unexpired net lease investment on each lease period.

• (b) The operating lease income is recognized in accordance with the straight-line method over the lease period. If the lease contract offers incentives to the lessee so to have the lease contract signed, the total cost of such incentives should be credited to the total lease income in accordance with the straight-line method over the lease period. The original direct costs incurred in negotiating and arranging an operating lease are added to the book value of the underlying asset and recognized as an expense in accordance with the straight-line method over the lease period.

The variable rent, if any, in the lease agreement that is not dependent on an index or rate is recognized as income upon occurrence.

• (B) The Company is the lessee

Except for the short-term leases and lease payments for low-value assets are recognized as expenses in accordance with the straight-line method over the lease period, other leases are recognized as right-of-use assets and lease liabilities on the lease commencement date.

• (a) The right-of-use asset is originally recognized at cost and subsequently measured at cost too. Also, it is booked at the cost net of the accumulated depreciation, accumulated impairment losses, and adjusted lease liability remeasurement. The right-of-use asset is depreciated in accordance with the straight-line method over the period from the lease commencement date to the expiry date of the useful life of the right-of-use asset or the lease expiry date, whichever is earlier.

• (b) The lease lability is originally recognized at the present value of the lease payables on the lease commencement date. If the implied interest rate of the lease is easy to determine, the lease payment is discounted at the implied interest rate, but if the implied interest rate is hard to determine, it is to be discounted at the lessee’s incremental loan rate. It is subsequently measured at amortized cost in accordance with the effective interest method. The lease liability remeasurement is adjusted to the right-of-use asset; however, if the book value of the right-of-use asset is zero, the remaining remeasurement is recognized in profit and loss.

• 29 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

The variable rent, if any, in the lease agreement that is not dependent on an index or rate is recognized as expense upon occurrence.

(13) Intangible assets

• (A) Computer software, etc., acquired independently that are intangible assets with limited service-life, is measured at cost in accordance with the straight-line method over the average useful life of 3 years. Examine the amortization period and amortization method of the intangible assets with limited service-life on each reporting date. If the estimated useful life is different from the estimation, the amortization period will be changed accordingly. If the expected consumption pattern of the future economic benefits of the asset has changed, the amortization method will be adjusted to reflect the said change, which will be processed as a change in accounting estimate. Once the tangible assets with limited useful life is with impairment loss recognized, the amortization expense of the asset in the future period is adjusted based on the amended book value of the assets in accordance with the straight-line method over the remaining useful life.

• (B) The intangible asset is delisted when it is disposed of or when it cannot generate future economic effect through use or disposition. The profit or loss resulted from the delisting is recognized in profit and loss; also, the profit may not be classified as income.

• (C) The expenses incurred in the research phase are expensed. The expenses incurred in the development stage are recognized as intangible assets when the specified conditions are met, but expenses that do not meet the requirements will be expensed upon incurred in the research phase.

(14) Equity instrument

Equity instrument refers to the contract that represents the Company’s remaining interest in assets net of all liabilities. The Company’s equity instruments are recognized at the price received, net of direct issuance costs.

• 30 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(15) Income recognition

Income is measured at the consideration that is expected to receive after having goods or labor service transferred. The Company recognizes income when the control of the goods or labor services is transferred to the customer to fulfill the Company’s performance obligations. The Company’s main income items are as follows:

Sale of goods

The Company mainly manufactures and sells molds and stamping parts with income recognized at the time of having the control of the products transferred to the customers and in return with the right to collect considerations. Therefore, the Company usually recognizes income when the goods have been delivered and the legal title has been passed on to the customers. If the sales discount or sales return in the future can be reliably estimated, and liability for refunds can be recognized based on past experience and other relevant factors, it is to be credited to the sales income when the sales are recognized.

The Company has accounts receivable recognized when the control of the goods is transferred and in return with the right to collect the considerations unconditionally. If the goods have been transferred to the customer without the right to collect the considerations unconditionally, it is recognized as a contract asset. If the right to collect the consideration from the customer is obtained or is to be obtained before the transfer of the goods to the customer, also, the Company has no obligation to have the goods transferred to the customer under the circumstance, it is recognized as a contract liability.

If the timing of contractual payment for the transfer of goods provides the customer or the Company with significant financial benefits, either explicitly or implicitly, the Company shall adjust the promised consideration amount to reflect the time value of money. If a sale contract is signed to have goods transferred to the customer and the period from the date the goods transferred to the date the payment made by the customer is for less than 1 year, the Company does not adjust the promised consideration amount.

• 31 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(16) Loan cost

It refers to the interest and other cost related to the loans. The loan cost that is directly attributable to the acquisition, construction, or production of qualified assets (referring to the assets that take a long time to reach the intended use or sale status) is capitalized as an integral part of the cost of the asset, while other loan cost is recognized as an expense upon occurrence. When a specific loan is invested temporarily before the expenditure incurred for the qualified assets, the investment income arising from such loan investment should be deducted from the actual loan cost incurred. The capitalization of loan cost is stopped when almost all the necessary activities to reach the intended state of use or sale have been completed for the qualified assets. If the active development of the qualified assets is suspended for a long period of time, the capitalization of loan cost will be suspended for the said period.

(17) Employee welfare

(A) Short-term employee welfare

It refers to the employee benefits (except for employment termination benefits) that are expected to be fully paid within 12 months after the annual reporting period for the services provided by employees, which is measured at the undiscounted amount expected to be paid in exchange for employee services, and it is recognized as an expense and liability. The expected cost of profit sharing and dividend payment is recognized as an expense and liability in accordance with the provision stated in the preceding paragraph due to a current legal or presumed payment obligation arising from past events with an amount that can be estimated reliably.

(B) Employee benefits - retirement benefits

• (a) All full-time employees of the company are entitled to the retirement plan. The entire employee pension fund is deposited in the pension fund account and managed by the Labor Retirement Reserve Committee. The aforementioned pension fund is deposited in the name of the Labor Retirement Reserve Committee that is completely separated from the company; therefore, it is not included in the aforementioned consolidated financial report. The retirement plan for employees of foreign subsidiaries is handled in accordance with local law and regulations.

• 32 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

• (b) For a defined contribution plan, the company’s monthly employee pension contribution rate shall not be less than 6% of the employee’s monthly salary, and the contributed amount is recognized as the current expense. Foreign subsidiaries are to appropriate a certain percentage of the salary as pension according to the local law; also, it is recognized as a current expense.

• (c) For a defined benefit plan, the actuarial pension amount should be appropriated on the annual reporting date according to the Projected Unit Credit Method. The re-measured amount is included in other comprehensive profits and losses when it occurs; also, it is immediately recognized in the retained earnings.

(18) Share-based payment

• (A) For share-based payment transactions with equity delivered to the employees, the fair value of the labor service received from the employees is based on the fair value of the equity instrument on the delivery day. If the delivered equity instrument is immediately vested without providing labor service in a specific period, the labor services received are recognized in full on the delivery date with the equity increased relatively. If it is not immediately vested until the labor services are completed in a specific period, it is presumed that the labor service provided by the counterparty as the consideration for the equity instrument will be received in the future vested period, and it is recognized as a remuneration expense in the vested period with the equity increased relatively. The recognition of remuneration expense is based on the best estimate of the equity instruments expected to be vested during the vested period. If the expected vested equity instruments are subsequently found to be different from the estimation, the said estimation will be amended, if necessary, so to match up with the final vested equity instrument on the vested day.

• (B) The fair value of equity instruments is measured according to the market price available on the measurement date and the terms and conditions related to the decision-making in vesting equity instruments. If the market price is not available, apply appropriated estimation techniques to estimate the price of the delivered equity instruments on the measurement date in an arms-length transaction between the two parties who are fully understanding and willing to trade in order to estimate the fair value of the equity instruments. Also, the aforementioned evaluation techniques are consistent with generally accepted evaluation techniques for financial instrument pricing, and all the elements and assumptions related to the pricing are considered by the traders who are fully understanding and willing to trade are included.

• 33 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(19) Income tax

• (A) Income tax expenses include current and deferred income taxes. Except for those related to business mergers, directly recognized in equity, or other comprehensive profit and loss, current income tax and deferred income tax expenses are recognized in profit and loss.

• (B) Current income tax expenses refer to the estimated income tax payable or tax refund receivable calculated on the taxable income or loss of the current year at the tax rate that has been legislated or substantively legislated on the reporting date, including any adjustment made to the income tax payable or refundable of the previous year.

• (C) Deferred income tax expenses are calculated and recognized on the temporary difference between the tax base of assets and liabilities and the book amounts reported.

• (D) Deferred income tax assets and liabilities are measured at the tax rate applicable when the temporary difference is expected to reverse that has been legislated or substantively legislated on the reporting date. Deferred income tax assets and liabilities can only be applied to offset current income tax assets and liabilities lawfully; also, it is limited to the same taxpayer and the same levying tax authority; or it can be offset by different taxpayers when the intention is to have the net current income tax liabilities and assets offset, or the income tax liabilities and assets will be realized at the same time.

• (E) The outstanding taxable losses, income tax credit, and deductible temporary differences are recognized as deferred income tax assets to the extent of the potential taxable income that occurred in the future. Also, the deferred income tax assets are evaluated on each reporting day and adjusted down to the extent of the relevant tax benefit unlikely to be realized.

• (F) For the domestic subsidiaries of the Company, for the additionally levied business income tax on the unappropriated earnings of the year, the income tax expense of the unappropriated earnings is recognized according to the actual earnings distribution that is resolved in the shareholders meeting of the following year.

• 34 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(20) Earnings per share

The Company presents the current basic and diluted earnings per share attributable to the common stock shareholders of the Company. Basic earnings per share is calculated by having the profit and loss attributable to the common stock shareholders of the Company divided by the current weighted average outstanding common stock shares. Diluted earnings per share is calculated by having all the dilutive potential common stock shares and the adjusted profit and loss attributable to the common stock shareholders of the Company divided by all the dilutive potential common stock shares and the adjusted current outstanding weighted average stock shares.

(21) Government grants

• (A) The Company will have government grants recognized with certainty that all requirements for eligibility will be met and the Company is probably to receive it.

• (B) The asset-related government grants are recognized in profit and loss systematically in the period when the cost of the funded asset is recognized as an expense by the Company. The government grants that are used to compensate the occurred expenses or losses will be recognized in profit and loss during the period when it is collectible.

• (C) Government grants are presented in the consolidated financial statements as follows: Unrealized government grants (that is, the benefits of deferred government grants) are classified as liabilities in the consolidated balance sheet; realized government grants are debited to the relevant expenses or other income in the consolidated income statement.

5. MAIN CAUSES OF UNCERTAINTY TO MATERIAL ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS

The management must make judgments, estimations, and assumptions when preparing the parent company only financial report, which will affect the reported amount of income, expenses, assets, and liabilities. The uncertainties of these material assumptions and estimations may cause significant adjustments to the book amount of assets and liabilities in the future, that is, actual results may differ from estimates.

• 35 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

• (1) The management’s judgments regarding the significant impact on the amounts recognized in the parent company only financial statements during the process of adopting accounting policies: Please refer to Note 6.(9)(G) to the parent company only financial statements for the classification of investment property.

• (2) The other main sources of information related to the uncertainties of assumptions and estimation that may have resulted in significant adjustments to the book value of assets and liabilities in the next financial year on the reporting date are described as follows:

- (A) Employee benefits measurement of the defined benefit obligation

As stated in Note 6.(13) to the parent company only financial statements, the defined benefit obligations and expenses are measured with actuarial assumptions made, including demographic and financial assumptions related to the employees eligible for benefits in the future. Any change in the actuarial assumptions may result in actuarial profit and loss and thus affect the net defined benefit liability.

The Company ’ s net defined benefit liability for an amount of NT$29,956 thousand was booked on December 31, 2023. If the discount rate adopted for the Company ’ s actuarial assumptions and the expected salary increase rate were increased/decreased by 0.5%, the book value of the net defined benefit liability would be decreased by NT$2,958 thousand or increased by NT$9,554 thousand, and increased by NT$9,470 thousand or decreased by NT$2,962 thousand, respectively.

The impact of changes in one single assumption is analyzed in the preceding paragraph with all other assumptions remained intact; however, the impact of changes in actual actuarial assumptions is interactive in reality. The approaches adopted for sensitivity analysis are consistent with the approaches adopted for the measurement of the net defined benefit liability, and the approaches and assumptions used are the same as that of in the prior period.

• 36 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(B) Impairment of accounts receivable

As stated in Note 4.(8), 6.(3) and 6.(4) to the parent company only financial statements, allowance for loss of the accounts receivable is measured simply at the expected credit loss during the duration on the reporting date. Receivables are classified according to the nature of the common risks that indicate the customer’s ability to pay all payables in accordance with the contractual terms, taking into account the consideration of the reasonable and verifiable information (obtainable on the reporting date without excessive costs or inputs) related to past events, current conditions, and forecasts of future economic conditions; also, the expected credit loss is estimated on the basis of the probability of default and the expected credit loss rate. If the classification of receivables and the estimation of the probability of default and the expected credit loss rate is changed by the management of the Company or is changed due to the economic conditions, the estimated allowance for losses of the receivables will be affected inevitably.

The Company’s net receivables amounted to NT$468,134 thousand (including net notes receivable, net accounts receivable (including related parties), and other receivables) on December 31, 2023, net of the estimated allowance for loss of NT$622 thousand.

(C) Inventory evaluation

As stated in Note 4.(9) of the parent company only financial statements, the yearend inventory is measured at the lower of cost or net realizable value. The comparison of cost and net realizable value is itemized, except for inventories of the same category. The net realizable value refers to the amount resulted from the estimated selling price in the course of business net of the estimated additional cost needed for project completion and the estimated sales expenses after the project completion. The said estimation is based on the current market conditions and historical sales experience in similar products, which could be significantly affected by the changes in market conditions.

The book value of the Company’s inventories was NT$188,278 thousand on December 31, 2023, net of the allowance for inventory loss in valuation amounted to NT$33,263 thousand.

• 37 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(D) Fair value of financial instruments

As stated in Note 4.(6) of the parent company only financial statements, financial assets-noncurrent measured at fair value through other comprehensive profit and loss are financial instruments without an active market; therefore, their fair value is determined with appropriate evaluation techniques adopted. The said valuation techniques include the recent arm’s-length transactions conducted in the market, reference to the current fair value of another financial instrument that is substantially equivalent, and other valuation models. The measurement of the fair value could be affected by any change in assumptions and estimates. Please refer to Note 12.(2)(D) to the parent company only financial statements for details.

The book value of the Company’s unlisted (non-TPEx) stock shares that were measured at fair value through other comprehensive profit and loss was NT$320,903 thousand on December 31, 2023.

6. DESCRIPTION OF IMPORTANT ACCOUNTING ITEMS

(1) Cash and cash equivalents

Cash and petty cash Checking deposit and savings deposit Time deposits Total	December 31,2023 $2,909 112,369 503,960 $619,238	December 31,2022
		$2,300 133,294 1,189,296
		$1,324,890

• (A) The aforementioned time deposits can be converted into a fixed amount of cash at any time and with limited risk of value changes.

• (B) The aforementioned bank deposits had not been provided as collateral or mortgaged.

• 38 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(2) Financial assets-current measured at fair value through profit and loss

Financial assets measured at fair value through profit and loss mandatorily Acquisition cost: Bonds SWAP contracts Subtotal Evaluation adjustment: Bonds SWAP contracts Subtotal Total	December 31,2023 $1,329,762 - 1,329,762 (9,979) 348 (9,631) $1,320,131	December 31,2022
		$842,117 -
		842,117
		(85,786) 6,254
		(79,532)
		$762,585

• (A) The SWAP contracts signed between our company and a financial institution is primarily aimed at avoiding the financial risks caused by fluctuations in foreign currency debt and liabilities. However, it was not designated as a hedging instrument, and details of the derivative instruments related to financial assets and financial liabilities held for trading that were not accounted for as hedging instruments are as follows:

Financial instrument December 31, 2023 SWAP contract SWAP contract SWAP contract Total December 31, 2022 SWAP contract SWAP contract SWAP contract SWAP contract SWAP contract SWAP contract Total	Nominal principal (NT$ Thousand) USD 3,700 USD 5,000 USD 1,000 USD 9,700 USD 900 USD 4,200 USD 5,000 USD 1,080 USD 3,300 USD 2,000 USD 16,480	Currency USD:NTD USD:NTD USD:NTD USD:NTD USD:NTD USD:NTD USD:NTD USD:NTD USD:NTD	Due date
			01.05.2024 01.31.2024 02.16.2024 01.05.2023 01.17.2023 01.31.2023 02.10.2023 02.13.2023 03.27.2023

• 39 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

The net profits arising from foreign exchange transactions were NT$41,938 thousand and NT$49,901 thousand, for the years ended December 31, 2023 and 2022, respectively.

• (B) The Company 's valuation losses of financial assets and liabilities at fair value through income (loss) were NT$62,757 thousand and NT$(14,403) thousand for the years ended December 31, 2023 and 2022, respectively, which were booked in the “Non-operating income and expenses - other profit and loss” account.

• (C) The aforementioned financial assets measured at fair value through profit and loss had not been provided as collateral or mortgaged.

• (D) Please refer to Note 12.(2)(C)(a) and (b) of the consolidated financial report for the disclosure of the market risk and credit risk of the Company’s financial assets measured at fair value through profit and loss.

• (3) Notes receivable - net

Notes receivable-net
Notes receivable Less: Allowance for loss Net amount	December 31,2023 $4,095 - $4,095	December 31,2022
		$2,897 -
		$2,897

(4) Accounts receivable - net

Accounts receivable-net
Accounts receivable Less: Allowance for loss Net amount	December 31,2023 $431,574 (622) $430,952	December 31,2022
		$562,466 (430)
		$562,036

• (A) The allowance for loss of the Company’s notes receivable, accounts receivable, and other receivable is simply measured by the expected credit losses amount throughout the duration. The notes receivable and accounts receivable are classified according to the common risk characteristics of the customers’ ability to pay all due amounts in accordance with the contract terms, taking into account the reasonable and provable information related to past events, current conditions, and future economic conditions

• 40 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(obtainable without excessive cost or investment on the reporting date), and estimating the expected credit loss according to the estimated default rate and expected credit loss rate.

• (B) The increase or decrease of allowance for loss of the Company’s notes receivable, accounts receivable, and other receivable is as follows:

Balance - beginning Allowance account for the impairment of notes receivable, accounts receivable, and other receivables Allowance reversal account for the impairment of notes receivable, accounts receivable, and other receivables Balance - ending	Fortheyearsended December 31,	Fortheyearsended December 31,
	2023 $430 192 - $622	2022
		$1,069 - (639)
		$430

• (C) Please refer to Note 12.(2)(C)(b) of the parent company only financial report for the disclosure of the credit risk of the Company’s notes receivable, accounts receivable, and other receivables.

• (5) Inventory

Raw materials Substances Work-in-process goods Finished goods Merchandise trade Total		December 31,2023
	Cost	Allowance for loss of inventoryin valuation $4,715 62 22,856 5,625 5 $33,263	Book amount
	$53,780 10,624 83,381 73,393 363		$49,065 10,562 60,525 67,768 358
	$221,541		$188,278

• 41 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

Raw materials Substances Work-in-process goods Finished goods Merchandise trade Total		December 31,2022
	Cost	Allowance for loss of inventoryin valuation	Book amount
	$70,773 12,801 104,132 99,640 3,713	$4,023 10 17,871 8,934 89	$66,750 12,791 86,261 90,706 3,624
	$291,059	$30,927	$260,132

(A) Cost of goods sold related to inventory is as follows:

Inventory booked in “cost of goods sold” Inventory cost debited to “net cash value” Recovery of the net cash value of inventory Inventory loss Total operating cost	For theyears ended December 31,	For theyears ended December 31,
	2023	2022
	$1,590,104 2,336 - (8,598)	$1,845,518 - (6,376) (1,559)
	$1,583,842	$1,837,583

• (B) The reversal of the provision for inventory write-down in 2022, attributable to either the increase in raw material prices or usage, or the completion and sale of products, resulted in the elimination of factors that caused the net realizable value of inventories to fall below cost. Consequently, the recognition of the net realizable value of inventories increased, leading to a reduction in the cost of goods sold by NT$6,376 thousand. The aforementioned inventory had not been provided as collateral or mortgaged.

• (C) The aforementioned inventory had not been provided as collateral or mortgaged.

• 42 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(6) Other financial assets-current

Other financial assets-current
Special account for transferring overseas funds back to Taiwan Time deposit	December 31,2023 7,637	December 31,2022
		7,383

The aforementioned other financial assets - current are not provided with any collateral or pledge.

(7) Financial assets-current measured at fair value through other comprehensive profit and loss

Equity instrument Unlisted stocks Equity instrument investment evaluation adjustment Total	December 31,2023 $27,006 293,897 $320,903	December 31,2022
		$27,006 235,017
		$262,023

• (A) Equity instrument investment measured at fair value through other comprehensive profit and loss was not an available-for-trade investment; therefore, the Company chose to have it designated as measured at fair value through other comprehensive profit and loss.

• (B) The Company had recognized dividend income from the investment in equity instrument measured at fair value through other comprehensive profit and loss were NT$9,500 thousand, and NT$13,571 thousand for the years ended December 31, 2023 and 2022, respectively.

• (C) The Company did not have cumulative profit or loss transferred within equity for the years ended December 31, 2023 and 2022.

• (D) The aforementioned financial assets measured at fair value through other comprehensive profit and loss had not been provided as collateral or mortgaged.

• 43 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

• (E) Please refer to Note 12.(2)(C)(a) and (b) of the parent company only financial report for the disclosure of the market risk and credit risk of the Company’s financial asset measured at fair value through other comprehensive profit and loss.

• (8) Investment under the equity method

• (A) The Company’s investments under the equity method are as follows:

Investee company	December 31,2023	Equity holding ratio(%)	December 31,2022	Equity holding ratio(%)
CHIN DE INVESTMENT CO., LTD. G-SHANK, INC. GRAND STAR ENTERPRISES L.L.C. (Note) G-SHANK ENTERPRISE (M) SDN. BHD SHANGHAI G-SHANK PRECISION MACHINERY CO., LTD. GREAT-SHANK CO., LTD. G-SHANK JAPAN CO., LTD. SUNFLEX TECHNOLOGY CO., LTD. (SUNFLEX) G-SHANK PRECISION MACHINERY (SUZHOU) CO., LTD. Total	$54,271 375,076 1,615,802 409,297 1,912,990 132,100 14,678 168,076 16,827	100.00 100.00 100.00 92.33 85.00 85.00 58.89 14.48 5.86	$52,709 351,069 1,681,772 383,540 1,636,821 174,756 12,644 161,006 15,940	100.00 100.00 100.00 92.33 85.00 85.00 58.89 14.48 5.86
	$4,699,117		$4,470,257

• (B) The Company’s shareholding in each individual insignificant affiliated company is summarized as follows:

The Company’s shareholding in each summarized as follows:	individual insignificant affiliated company is	individual insignificant affiliated company is
Net profit (loss) of the continuing business unit – current Other comprehensive profit and loss (after tax) - current Total comprehensive profit and loss - current	For theyears ended December 31,
	2023 $9,977 3,557 $13,534	2022
		$11,222 (4,042)
		$7,180

• 44 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

• (C) The increase or decrease of the Company’s investments under the equity method is as follows:

as follows:
Balance - beginning The investment made in the current period Dividends pay from subsidiaries and associates Profit amount - current Changes in the subsidiaries and affiliated enterprises under the equity method The exchange difference amount from the conversion of the financial statements of foreign operating institutions The unrealized valuation profit (loss) amount of the financial assets measured at fair value through other comprehensive profit and loss The share of unrealized gains (losses) from changes in fair value of financial assets measured at fair value through other comprehensive income. Balance - ending	For theyears ended December 31,
	2023 $4,470,257 - (262,247) 558,304 296 (71,054) (37) 3,598 $4,699,117	2022
		$4,097,995 2,809 (351,183) 621,399 15 103,268 232 (4,278)
		$4,470,257

• (D) The Company recognized the equity investment changes in the aforementioned subsidiaries and affiliated enterprises in 2023 and 2022, which were calculated based on the audited financial statements of the invested companies for the same period.

• (E) The Company’s subsidiaries, except for the entities dissolved and liquidated by the resolution of the board of directors that could no longer be included in the consolidated statements, were all included in the 2023 and 2022 consolidated financial reports.

• (F) The investment under the equity method mentioned above does not involve any collateral or pledges.

• 45 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(9) Property, plant and equipment

• (A) The change in the Company’s property, plant and equipment is as follows:

For the years ended December 31, 2023

Cost	Land House & building Machinery equipment Transportation equipment Office equipment Other equipment Construction in progress and equipment yet to be tested $102,911 $257,630 $690,340 $34,553 $991 $88,468 $4,386 - 11,260 13,866 2,884 171 13,172 - - - (2,343) (4,503) (80) (475) - - 3,440 16,166 - - 2,465 (4,386) 102,911 272,330 718,029 32,934 1,082 103,630 - - 171,304 438,185 24,086 991 59,987 - - 11,108 45,279 2,787 16 6,721 - - - (2,320) (4,503) (80) (475) - - - - - - - - - 182,412 481,144 22,370 927 66,233 - $102,911 $89,918$236,885 $10,564 $155 $37,397 $-	Total
Balance at January 1, 2023 Addition Disposition Reclassification -current Balance at December 31, 2023 Accumulated depreciation: Balance at January 1, 2023 Depreciation Disposition Reclassification -current Balance at December 31, 2023 Carrying amount at December 31, 2023		$1,179,279 41,353 (7,401) 17,685
		1,230,916
		694,553 65,911 (7,378) -
		753,086
		$477,830

• 46 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

For the years ended December 31, 2022

Cost	Land	House & building	Machinery equipment	Transportation equipment	Office equipment	Other equipment	Construction in progress and equipment yet to be tested	Total
Balance at January 1, 2022 Addition Disposition Reclassification –current Balance at December 31, 2022 Accumulated depreciation: Balance at January 1, 2022 Depreciation Disposition Reclassification –current Balance at December 31, 2022 Carrying amount at December 31, 2022	$102,911 - - -	$252,548 5,082 - -	$613,795 76,805 (4,470) 4,210	$33,084 4,492 (3,023) -	$991 - - -	$84,544 4,617 (693) -	$- 3,440 - 946	$1,087,873 94,436 (8,186) 5,156
	102,911	257,630	690,340	34,553	991	88,468	4,386	1,179,279
	- - - - -	162,280 9,024 - -	403,500 39,155 (4,470) -	24,490 2,619 (3,023) -	991 - - -	55,068 5,612 (693) -	- - - -	646,329 56,410 (8,186) -
	-	171,304	438,185	24,086	991	59,987	-	694,553
	$102,911	$86,326	$252,155	$10,467	$-	$28,481	$4,386	$484,726

• 47 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

• (B) The Company’s major building constituents mainly include the main plant buildings, workshops, and plant decoration, which are depreciated according to their service life of 3-50 years.

• (C) The Company did not acquire property, plant and equipment that caused the capitalization of the loan cost for the years ended December 31, 2023 and 2022.

• (D) The Company did not have any impairment occurred to the property, plant and equipment for the years ended December 31, 2023 and 2022.

• (E) The aforementioned property, plant and equipment had not been provided as collateral or mortgaged.

• (F) The acquired property, plant and equipment listed in the parent company only cash flow statemen t:

flow statement:
The current addition of property, plant and equipment listed in Note 6(9)(A) of the parent company only financial report Add: Equipment payable–beginning Less: Equipment payable–ending Cash outflow for the acquisition of property, plant and equipment	For theyears ended December 31,
	2023	2022
	$41,353 14,194 (10,355)	$94,436 16,537 (14,194)
	$45,192	$96,779

• (G) The Company's leased assets are as follows:

House and building Less: Accumulated depreciation Leased assets - net	December 31,2023 $1,340 (1,043) $297	December 31,2022
		$1,340 (1,006)
		$334

(a) The company had part of the plant building leased to BAIYUE PRECISION CO., LTD. (hereinafter referred to as “BAIYUE”) for a period from October 1, 2021 to September 30, 2022. The lease contract was renewed on September 30, 2022 for a lease period from October 1, 2022 to September 30, 2023. The lease contract was renewed on September 30, 2023 for a lease period from October 1, 2023 to September 30, 2024.

• 48 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

• (b) The Comapny had part of the plant building leased to BAIYUE. The said plant building could not be sold independently; also, the said plant building owned by the Group was mainly for the purpose of product production, service providing, and management; therefore, the proprietary plant was not classified as an investment property.

(10) Intangible assets

• (A) The increase or decrease of the Company’s intangible assets-computer software is as follows:

follows:
Cost: Balance - beginning Addition - current Decrease in the current period - delisted on the due date Balance - ending Accumulated depreciation: Balance - beginning Amortization - current Decrease in current period - delisted on the due date Balance - ending Book amount - ending	For theyears ended December 31,
	2023 $2,741 281 (1,797) 1,225 1,785 745 (1,797) 733 $492	2022
		$5,075 600 (2,934)
		2,741
		3,625 1,094 (2,934)
		1,785
		$956

• (B) The Company did not have any impairment occurred to the intangible assets for the years ended December 31, 2023 and 2022.

(11) Short-term loans

loans
Credit loans	December 31,2023 $1,210,000	December 31,2022
		$1,070,000

• 49 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

• (A) The Group’s short-term loan interest rate is as follows:

Nature of loan Credit loan	December 31,2023 1.640%-2.380%	December 31,2022
		1.350%-1.990%

• (B) The Company did not provide collateral for the aforementioned short-term loans.

• (12) Long-term loans

Long-term loans
Creditor Nature of loan Contractperiod December 31, 2023：none December 31, 2022 Fubon Bank Credit loan 01/03/2020~01/03/2025 Fubon Bank Credit loan 02/07/2020~02/07/2025 Total Less: Long-term loans due within one year Long-term loans due after one year	Amount $60,295 18,737 79,032 (38,735) $40,297	Repayment method
		(Note 1) (Note 2)

• Note 1：The first repayment date to Fubon Bank is on January 15, 2023, followed by a monthly installment for a total of 24 payments with the principal paid equally and the interest paid monthly. The company used it in stages from January 3, 2020 to January 5, 2022. The loan has been fully repaid in advance on September 5, 2023.

• Note 2：The first repayment date to Fubon Bank is on February 15, 2023, followed by a monthly installment for a total of 24 payments with the principal paid equally and the interest paid monthly. The company used it in stages from February 7, 2020 to August 7, 2020. The loan has been fully repaid in advance on September 5, 2023.

• (A) The long-term loans of Taipei Fubon Bank mentioned above are loans for financing investment projects by Taiwanese businesses returning to Taiwan. with interest rates of 1.096% as of December 31, 2022.

• (B) The Company did not provide collateral for the aforementioned long-term loans.

• 50 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(13) Retirement benefits

(A) Defined benefit plan

• (a) The Company has based on the employee’s seniority and the expected salary before retirement to have the employee retirement plan formulated, and has pension reserve appropriated for an amount equivalent to certain percentage of the monthly salary in accordance with the “Labor Standards Act” and then deposited in a special account and used by the Labor Pension Committee. The pension reserve is operated separately from the business operation of the Company; therefore, it is not included in the consolidated financial statements.

• (b) The remeasurement of the net defined benefit liability is accumulated and recognized in other comprehensive profit and loss as follows:

Balance - beginning Net defined benefit plan remeasurement Balance - ending	2023 $(70,998) (596) $(71,594)	2022
		$(91,494) 20,496
		$(70,998)

• (c) The reconciliation of the present value of the defined benefit obligation and the fair value of the plan asset is as follows:

Present value of defined benefit obligation Fair value of plan assets Plan shortfalls Booked in other payables Net defined benefit obligation	December 31,2023 $194,480 (164,158) 30,322 (366) $29,956	December 31,2022 $206,349 (174,034) 32,315 (386) $31,929

• 51 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

• (d) The changes in the present value of the defined benefit obligation are as follows:

Book value - beginning Current service cost Interest expense Net defined benefit obligation remeasurement Actuarial (benefits) losses due to changes in demographic assumptions Actuarial (benefits) losses due to changes in financial assumptions Actuarial (benefits) losses resulted from experience adjustments Benefits paid Book value - ending	2023 $206,349 1,491 2,538 - 509 882 (17,289) $194,480	2022
		$217,887 1,752 1,525 1,306 (9,200) (653) (6,268)
		$206,349

• (e) The changes in the fair value of plan assets are as follows:

Balance – beginning Interest income Net defined benefit assets remeasurement Actuarial benefits of plan assets resulted from experience adjustments Employer’s contributions Benefits paid Balance - ending	2023 $174,034 2,141 795 4,477 (17,289) $164,158	2022
		$155,492 1,088 11,949 11,773 (6,268)
		$174,034

• (i) According to the “Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund,” the income and expense, safeguard, and utilization of the Company’s plan assets are entrusted to Bank of Taiwan for process by the competent authorities and the Ministry of Finance, of which, the safeguard and utilization of the fund can be entrusted to other financial institutions. The scope of application for the funds includes deposited in domestic and foreign financial institutions, investment in domestic and foreign listed/OTC or private equity securities, investment in domestic and foreign debt securities, investment in domestic public offering or private placement of securities investment trust funds, beneficiary

• 52 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

certificates of futures trust funds , mutual trust fund beneficiary securities or collective trust instruments, investment in the beneficiary certificates issued or managed by foreign fund management institutions, fund shares or investment units, investment in domestic and foreign property and its securitized instruments, investment in domestic and foreign spot instruments, engagement in domestic and foreign financial derivatives transactions, marketable securities lending transactions, etc. Moreover, the minimum income distributed from the annual final account may not be less than the interest income calculated according to the local bank’s 2-year time deposit interest rate. The information on the utilization of the labor pension fund assets includes the fund appropriation and profit ratio provided by the Bank of Taiwan, the fund assets allocation announced on the website of the Bureau of Labor Funds, Ministry of Labor, the Executive Yuan, etc. Please refer to the website of the Bureau of Labor Funds, Ministry of Labor, the Executive Yuan for more information.

• (ii) The Company’s pension reserves in the special account with the Bank of Taiwan were NT$164,158 thousand and NT$174,034 thousand on December 31, 2023 and 2022, respectively.

• (iii) As of December 31, 2023, the Company’s expected appropriation of defined benefit plan in 2024 was NT$4,399 thousand.

• (f) The pension expense recognized in profit and loss and booked amount are as follows:

follows:
Service cost Interest expense Interest income Total Operating cost Selling and marketing expenses General and administrative expenses Research and development expenses Total	2023 $1,491 2,538 (2,141) $1,888 $922 237 546 183 $1,888	2022
		$1,752 1,525 (1,088)
		$2,189
		$1,102 265 627 195
		$2,189

• 53 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

• (g) The main actuarial assumptions used in determining the present value of the defined benefit obligation are as follows:

benefit obligation are as follows:
Discount rate Expected salary increase rate	December 31,2023 1.17% 1.50%	December 31,2022
		1.23% 1.50%

Please refer to Note 5.(2)(A) to the consolidated financial statements for the sensitivity analysis regarding the impact on the net defined benefit liabilities due to the reasonable and possible changes in the Company’s actuarial assumptions.

• (h) Information on the maturity overview of the defined benefit obligation is as follows:

Weighted average duration	December 31, 2023 6years	December 31, 2022
		7years

Maturity analysis of future benefit payments

Within 1 year 2~5 years Over 6 years Total undiscounted amount Present value of benefit payments	December 31,2023 $169,481 20,428 6,099 $196,008 $194,682	December 31,2022
		$174,007 23,966 11,119
		$209,092
		$207,229

(B) Defined contribution plan

• (a) The Company has adopted a defined contribution plan since the implementation of the “Labor Pension Act” in July 2005. The employees may choose to be subject to the pension provisions of the “Labor Standards Act” or the “Labor Pension Act” with the reservation of the seniority prior to the “Labor Pension Act” took forth. For the employees subject to the “Labor Pension Act,” the Company shall assume the pension contribution for an amount not less than 6% of the monthly salary that is to be appropriated on a monthly basis and deposited in the personal account of each employee with the Bureau of Labor Insurance. The Company is without any legal or presumed obligation to make any additional contribution other than the monthly pension contribution.

• 54 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

• (b) The pension expense recognized by the Company according to the definite contribution plan is as follows:

contribution plan is as follows:
Operating cost Selling and marketing expenses General and administrative expenses Research and development expenses Total	2023 $11,631 1,991 3,043 1,440 $18,105	2022
		$11,588 1,848 3,090 1,360
		$17,886

(14) Capital stock

Capital stock
Balance amount on January 1,2023 Employee exercise of stock warrant Balance amount on December 31, 2023 Balance amount on January 1,2022 Employee exercise of stock warrant Balance amount on December 31,2022	Authorized capital stock (1,000 shares) 350,000 350,000 350,000 350,000	Common stock shares issued at NT$10 par (including Advance Receipts for Capital Stock)
		Shares (1,000 shares) 190,654 190 190,844 187,832 2,822 190,654	Capital stock
			$1,906,543 1,900
			$1,908,443
			$1,878,323 28,220
			$1,906,543

• (A) As of December 31, 2023 and 2022, the company’s authorized capital stock included 20,000 thousand shares reserved for the issuance of an employee stock warrant.

• (B) The related rights, priority, and restrictions of the common stock shares issued by the company are as follows:

• (a) Each shareholder is entitled to one vote per share.

• (b) The distribution of dividends and bonuses are based on the shareholding ratio of each shareholder.

• (c) The property net of the debt is distributed proportionally to the shareholding ratio of each shareholder.

• 55 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

• (C) The number of shares subscribed through the exercise of employee stock options by our company in 2023 and 2022 were 190 thousand shares and 2,822 thousand shares , respectively. As of December 31, 2023 and 2022, the cumulative number of shares subscribed through the issuance of employee stock options was 10,792 thousand shares and 10,602 thousand shares , respectively. As of December 31, 2023, there were 190 thousand and 870 thousand shares that had not completed the registration process for the change in ownership, and were therefore temporarily recorded under the category of prepaid capital. For more information on the issuance of employee stock options, Please refer to Note 6.(20) in the individual financial statements.

• (D) The company decided at the board meeting on October 27, 2023 to carry out a cash capital increase by issuing 150,000 thousand new shares, divided into 15,000 thousand shares with a par value of NT$10 and an issuance premium of NT$58 per share. The application was approved by the Financial Supervisory Commission on December 28, 2023 and the full subscription of the shares was completed by February 2024, authorizing the Chairman to set February 27, 2024 as the date for the capital increase.

(15) Capital Surpluses

Capital Surpluses
Common stock premium Treasury stock transaction The difference between the actual acquisition price of the subsidiary’s equity and the book amount Changes in the net equity value of subsidiaries under the equity method and affiliated enterprises Employee stock options Invalid employee stock options Received donation from shareholders Total	December 31,2023 $317,414 63,306 3,563 32,158 35,311 36,414 1,739 $489,905	December 31,2022
		$314,662 63,306 3,563 31,862 20,619 36,325 1,684
		$472,021

• 56 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

According to the Company Act, the company shall apply the additional paid-in capital to make up for losses only. However, if the company has no loss, the stock premium and all or part of the donation received may be used to distribute new shares or cash proportionally to the shareholders’ original shareholding ratio. In addition, the company may apply the additional paid-in capital to supplement the capital loss only when there is an insufficient reserve.

(16) Legal reserve

According to the Company Act, the company after having all taxes paid and ready for earnings distribution shall first appropriate 10% legal reserve and continue to appropriate until the total legal reserve amount equals total capital. The legal reserve can be applied to make up for the company’s losses; also, if the company has no loss, the amount of the legal reserve exceeding 25% of the paid-in capital can be used to distribute new shares or cash proportionally to the shareholders’ original shareholding ratio.

(17) Special reserve

The Company has special reserve appropriated and reversed in accordance with Jin-Guan-Zheng-Far-Tzi No. 1010012865 Order, Jin-Guan-Zheng-Far-Tzi No. 1010047490 Order, and “ Questions and Answers on the Appropriation of Special Reserves after the Adoption of International Financial Reporting Standards (IFRSs). ” When the amount debited to other equity is reversed subsequently, the reversed amount could be distributed. In addition, the Financial Supervisory Commission had issued the Jin-Guan-Zheng-Far-Tzi No. 1090150022 Order on March 31, 2021, then the Jin-Guan-Zheng-Far-Zi No. 1010012865 Order and Jin-Guan-Zheng-Far-Tzi No. 1010047490 Order were revoked on December 31, 2021 and March 31, 2021, respectively. The Company will comply with the relevant letter and orders continuously.

(18) Earnings distribution and dividend policy

• (A) According to the company’s Articles of Incorporation, the annual earnings, if any, should be applied to pay income tax and make up for the losses of the previous years; also, appropriate 10% legal reserve from the remaining balance, if any. In addition, appropriate or reverse a certain amount of special reserve according to the regulations of the competent authority. Then, for the balance amount, if any, and the

• 57 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

unappropriated earnings of the previous year, except for the retained amount, the board of directors shall draft an earnings distribution plan for the resolutions of the shareholders meeting.

• (B) The company’s dividend policy: the company’s current industrial development is growing and will be expanded to support the business development. The earnings distribution shall be handled in accordance with the company’s Articles of Incorporation. However, the shareholders’ dividends distributed in the current year shall include not more than 50% of the stock dividend and must be more than 50% of the cash.

• (C) Regarding the proposed resolutions on profit distribution (pending approval at the shareholders' meeting to be held on June 14, 2024) or approved resolutions at the shareholders' meeting regarding profit distribution and distribution of dividends from capital surplus to shareholders, the situation is as follows:

Legal reserve Special reserve Shareholder’s dividends Cash Cash dividend per share Stock (NT$10 par) Stock dividend per share Distribute capital surplus to shareholders. Cash Cash dividend per share	Years Ended December 31	Years Ended December 31	Years Ended December 31
	2023 $67,441 $- $308,766 NT$1.50 -share -NT$ $205,844 NT$1.00	2022 $88,833 $- $438,505 NT$2.30 -share -NT$ $- -NT$	2021
			$65,821 $- $394,447 NT$2.08 -share -NT$ $- -NT$

• 58 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(19) Other equity (net amount after tax)

• (A) The exchange difference from the conversion of the financial statements of foreign operating institutions:

perating institutions:
Beginning Balance Current period occurrence Reclassified to (profit) and loss in the current period Ending balance	For theyears ended December 31,
	2023 $(338,584) (71,054) - $(409,638)	2022
		$(441,852) 103,268 -
		$(338,584)

• (B) Unrealized valuation benefits of financial assets measured at fair value through other comprehensive profit and loss:

omprehensive profit and loss:
Beginning Balance Current period occurrence Recognized under the equity method in the current period - affiliated enterprise Reclassified to retained earnings in the current period Ending balance	For theyears ended December 31,
	2023 $237,702 58,880 3,598 - $300,180	2022
		$279,295 (37,315) (4,278) -
		$237,702

(20) Share-based payment - employee rewards

The company was authorized by the Securities and Futures Bureau of the Financial Supervisory Commission to issue employee stock warrants on January 13, 2015, August 22, 2018, and June 21, 2022, for 500,000 units, 500,000 units, and 300,000 units respectively. One stock warrant is entitled to subscribe to 10 common stock shares of the company. New shares will be issued for the stock option exercised by employees and the subscription price is the company’s common stock closing price on the issuance day. The stock warrant holders can exercise a certain percentage of the stock warrant after 2-year from the issuance date (according to the regulations, the exercisable subscription amount is 40% of the amount available for subscription in each stock warrant issued after 2-year from the issuance date,

• 59 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

60% after 3-year from the issuance date, 80% after 4-year from the issuance date, and 100% after 5 years from the issuance date). The duration of the stock warrant is for seven years. The unexercised stock options after 7 years shall be deemed as being waived, and the subscribers cannot claim their rights to subscribe.

As of December 31, 2023, the issuance of compensatory employee stock warrants is disclosed as follows:

disclosed as follows:
Warrant issuance date	Total warrants issued originally	Total warrants outstanding at yearend	Total warrants available for subscription at yearend	Subscription price (NTD) (Note)
September 12,2018	290,000	185,600	1,856,000	$19.30
August 12,2019	210,000	179,000	1,390,000	19.40
August 5,2022	100,000	100,000	-	49.00
November 4,2022	100,000	100,000	-	42.90
June 5,2023	100,000	100,000	-	48.60

• Note ： The company has the subscription price adjusted when there is a change in common stock share or cash dividend is distributed for common stock shares in accordance with the “Regulations Governing the Issuance of Employee Stock Warrant and Stock Subscription.” The stock subscription price per share after adjustment is disclosed as of December 31, 2023.

• (A) The company adopts the Black-Scholes stock options model to assess the fair value of the employee stock warrant issued each year. The remuneration cost accrued were NT$15,766 thousand and NT$5,595 thousand, for the years ended December 31, 2023 and 2022, respectively. The input values of the stock option pricing model are as follows:

Expected dividend ratio Expected price fluctuation ratio Risk-free interest rate Expected duration	2022 Stock optionplan	2022 Stock optionplan	2022 Stock option plan -% 31.76%~35.33% 1.0109%~1.0687% 4.5~6 years	2018 Stock optionplan
	-% 32.86%~36.80% 1.0873%~1.0996% 4.5~6 years	-% 32.35%~36.13% 1.5365%~1.5954% 4.5~6 years		-% 18.99%~20.95% 0.554%~0.582% 4.5~6 years

• 60 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

Expected dividend ratio Expected price fluctuation ratio Risk-free interest rate Expected duration	2018 Stock optionplan 2014 Stock optionplan 2014 Stock optionplan -% -% -% 21.38%~22.07% 22.64%~25.43% 22.80%~27.68% 0.700%~0.758% 0.663%~0.831% 0.976%~1.203% 4.5~6 years 4.5~6 years 4.5~6 years

The assumption of the expected price fluctuation ratio is measured according to the impact of the annual dividend distribution in the past on stock price, and the expected stock price fluctuations in the future period. The stock option duration is the employee exercising stock option period that is deducted from the historical data and current expectation, which may not necessarily match the actual result or actual implementation.

• (B) The quantity and weighted average price of the compensatory employee stock option plan issued by the company is disclosed as follows:

plan issued by the company is	disclosed as follows:
Employee stock operations	2023 QTY(unit) Weighted average price per share (NTD) 585,700 $29.89 100,000 51.00 (19,000) 19.30 (2,100) 19.30 664,600 31.76 324,600 19.34 $16.67	2022
	QTY(unit) 585,700 100,000 (19,000) (2,100) 664,600 324,600 $16.67	QTY(unit) 670,600 200,000 (282,200) (2,700) 585,700 251,000 $15.93	Weighted average price per share (NTD)
Outstanding shares - beginning Granted in current period Exercised in current period Lost in current period (expired) Outstanding shares - ending Exercisable employee stock options - ending Average fair value per share of stock options granted to employees in the current period (NTD)			$18.64 49.50 14.83 20.30 29.89 20.34

• 61 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

The weighted average share price is NTD $72.10 and NTD $55.25 of the company's employees did execute stock options for the nine-month periods ended December 31, 2023 and 2022.

As of December 31, 2023 and 2022, the company’s outstanding compensatory employee stock option plan is as follows:

December 31,2023 2018 Stock option plan 2018 Stock option plan 2022 Stock option plan 2022 Stock option plan 2022 Stock option plan December 31,2022 2018 Stock option plan 2018 Stock option plan 2022 Stock option plan 2022 Stock option plan	Price range per share (NTD) 19.30 19.40 49.00 42.90 48.60 20.30 20.40 51.50 45.10	Outstandingstock options	Outstandingstock options	Exercisable employee stock options	Exercisable employee stock options
		Outstandi ng QTY (Unit)	Weighted average expected remaining duration Weighted average price per share (NTD)	Exercisable QTY(Unit)	Weighted average price per share (NTD)
		185,600 179,000 100,000 100,000 100,000 206,700 179,000 100,000 100,000	0.26 19.30 0.78 19.40 3.69 49.00 3.94 42.90 4.53 48.60 0.99 20.30 1.78 20.40 4.69 51.50 4.94 45.10	185,600 139,000 - - 152,000 99,000 - -	19.30 19.40 49.00 42.90 48.60 20.30 20.40 51.50 45.10

(21) Net operating income

Net operating income
Sales income Parts income Mold income Fixture income Merchandise income Total Less : Sales return Sales discount Net operating income	For theyears ended December 31,
	2023 $1,763,152 78,380 47,847 68,501 1,957,880 (9,169) (5,890) $1,942,821	2022
		$2,153,859 102,035 65,628 87,796
		2,409,318 (6,928) (6,992)
		$2,395,398

• 62 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

• (A) Income classification:

• (a) Main merchandise / service

Main merchandise / service
Parts income Mold income Tools income Merchandise income Total	For theyears ended December 31,
	2023 $1,748,873 77,961 47,847 68,140 $1,942,821	2022
		$2,141,119 101,605 65,624 87,050
		$2,395,398

(b) Main regional markets

Main regional markets
Customer location Taiwan Asia (other than Taiwan) America Europe Total	For theyears ended December 31,
	2023 $1,272,770 606,011 44,436 19,604 $1,942,821	2022
		$1,590,390 702,676 48,063 54,269
		$2,395,398

(c) Income recognition time

Income recognition time
Goods transferred at a certain time	For theyears ended December 31,
	2023 $1,942,821	2022
		$2,395,398

• (B) Contract liabilities:

December 31, 2023 December 31, 2022 Contract liabilities $6,497 $9,033

• 63 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

The significant changes in the contract liability balance are as follows:

Contract liabilities balance -beginning transferred to income in the current period Increase in cash received in advance in the current period	Years Ended	December 31
	2023 $(8,534) 5,998	2022
		$- 9,033

(22) Operating costs and expenses

The Company’s employee welfare expenses, depreciation, and amortization expenses are summarized as follows:

Function Nature	For the years ended December 31, 2023	For the years ended December 31, 2023	For the years ended December 31, 2023	For the years ended December 31, 2022	For the years ended December 31, 2022	For the years ended December 31, 2022
	Attributable to operating cost	Attributable to operating expense	Total	Attributable to operating cost	Attributable to operating expense	Total
Employee welfare expenses
Employee expense(Note 1)	$358,531	$189,665	$548,196	$378,759	$179,771	$558,530
Labor and health insurance expenses	34,822	16,028	50,850	34,016	15,219	49,235
Pension expenses	12,553	7,440	19,993	12,690	7,385	20,075
Director remuneration	-	5,076	5,076	-	4,783	4,783
Other welfare expenses	8,414	2,688	11,102	11,641	3,365	15,006
Depreciation expenses (Note 2)	56,598	9,276	65,874	50,001	6,372	56,373
Amortization expense	3,747	745	4,492	10,694	1,357	12,051

Note 1 ： (A) According to the company’s Articles of Incorporation, the company shall

appropriate an amount equivalent to 1-10% of the company’s net income before tax before deducting remuneration to employees, directors, and supervisors as remuneration to employees and not more than 3% as remuneration to directors and supervisors. However, it is necessary to reserve a sufficient amount to make up for the losses, if any. The remuneration to employees in the preceding paragraph is paid in the form of stocks or cash, including the employees of the controlled companies who meet the conditions set by the board of directors. The remuneration to directors and supervisors must be paid in cash. The aforementioned matters shall be resolved by the board of directors for implementation and shall be reported to the shareholders meeting.

• 64 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

• (B) The estimated amounts of accrued employee compensation payable for the fiscal years 2023 and 2022 of our company are NT$23,000 thousand, respectively, and the remuneration to directors and supervisors was NT$0, respectively.The estimated basis of employee compensation is determined by a certain proportion of the current year's pre-tax net profit (excluding the impact of employee compensation). The recognized employee compensation accrual is classified as current period operating costs or operating expenses. However, if there is a change in the dividend payout amount approved by the Board of Directors in the future, it will be adjusted in the next year's income statement according to accounting estimates.

• (C) The company’s board of directors had resolved on March 8, 2024 to distribute the 2023 remuneration to employees for NT$23,000 thousand in cash and remuneration to directors for NT$0; also, it was not different from the estimated remuneration to employees and directors in the company’s 2023 financial report. The company’s board of directors had resolved on March 10, 2023 to distribute the 2022 remuneration to employees for NT$23,000 thousand in cash and remuneration to directors and supervisors for NT$0 that were reported in the regular shareholders meeting on June 10, 2023; also, it was not different from the estimated remuneration to employees, directors, and supervisors in the company’s 2022 financial report.

• (D) Please refer to the Market Observation Post System for the information regarding the remuneration to employees and directors resolved by the company’s board of directors.

• Note 2 ： The depreciation expenses provided by the Company for the years 2023 and 2022 were NT$65,911 thousand and NT$56,410 thousand, respectively. Among them, the depreciation expenses for real estate, factories, and equipment - leased assets were all NT$37 thousand, which were listed under the net amount of other income and expenses.

• 65 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

• Note 3 ： (A) The average number of employees at the end of each month for the years 2023 and 2022 was 800 and 817, respectively, with the number of non-executive directors who are not employees being 6 and 5, respectively.

• (B) The Company’s average employee benefit expenses were NT$794 thousand and NT$792 thousand in 2023 and 2022, respectively.

• (C) The Company’s average employee salary was NT$690 thousand and NT$688 thousand in 2023 and 2022, respectively. The average employee salary was an increase of 0.29% in 2023 from the year 2022.

• (D) The Company’s remuneration policy (including directors, supervisors, managerial officers, and employees) is as follows:

  • (a) Director and supervisor’s traveling allowance: The Company’s board of directors has resolved a monthly traveling allowance for the board directors and supervisors for an amount of NT$20,000.

  • (b) Remuneration to directors and supervisors from the earnings distribution: The Company’s board of directors and supervisors have currently waived their remuneration with a letter of consent issued and filed, respectively.

  • (c) Remuneration to directors and supervisors: All board directors and supervisors, except for the Chairman and several board directors, do not receive remuneration for their services.

  • (d) Remuneration to managerial officers and employees, each one of them is compensated reasonably by taking into consideration of the Company’s overall operational performance, the contribution of each position holder to the Company’s performance, and the respective connection to future risks.

Please refer to Note 1(A) for the remuneration to employees and directors stipulated in the Company’s Articles of Incorporation.

• 66 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(23) Other income and expenses – net

Other income and expenses–net
Property, plant and equipment – lease assets Rent income Depreciation expense Other income and expenses - net	For theyears ended December 31,
	2023 $420 (37) $383	2022
		$420 (37)
		$383

(24) Non-operating income and expense

(A) (B) (C) (D)	Interest income Bank deposit interest Other interest income Total Other income Cash dividends Other income-other Total Other profit and loss Net loss of financial assets measured at fair value through profit and (loss) Net profit from the disposal of property, plant, and equipment Total Financial cost Bank loan interest	For theyears ended December 31,	For theyears ended December 31,
		2023	2022
		$46,884 69,904	$24,674 52,287
		$116,788	$76,961
		$9,500 70,088	$13,571 91,334
		$79,588	$104,904
		$62,757 219	$(14,403) 753
		$62,976	$(13,650)
		$(18,304)	$(13,906)

(E) Profit (loss) amount from the subsidiaries and affiliated enterprises under the equity

method

Please refer to Note 6.(8)(C) of the parent company only financial report for details.

• 67 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(F)	Exchange loss-net Realized exchange profit (loss) - net Unrealized exchange profit (loss)-net Total	For theyears ended December 31,	For theyears ended December 31,
		2023	2022
		$18,454 (6,929)	$63,040 (4,020)
		$11,525	$59,020

(25) Other comprehensive profit and loss

	Transactio	Reclassificati	Other
	ns of	on and	comprehensi	Income
Other comprehensive profit and loss	current	adjustment of	ve profit and	tax	Amount
constituents	period	currentperiod	loss	expense	after tax
For the years ended December 31, 2023
Items not reclassified to profit and loss:
Remeasurements of defined benefit plan	$(596)	$-	$(596)	$-	$(596)
Unrealized appraisal benefits of equity
instrument investment measured at fair
value through other comprehensive loss	58,880	-	58,880	-	58,880
Remeasurements of defined benefit plan
of affiliated enterprises under the equity
method	(37)	-	(37)	-	(37)
Unrealized appraisal benefits of equity
instrument investment measured at fair
value through other comprehensive
profit of affiliated enterprises under the
equity method	3,598	-	3,598	-	3,598
Total amount of items not reclassified to
profit and loss:	61,845	-	61,845	-	61,845
Items that may be reclassified to profit
and loss subsequently:
Exchange difference from the conversion
of the financial statements of foreign
operating institutions of subsidiaries
under the equity method	(71,054)	-	(71,054)	-	(71,054)
Total	$(9,209)	$-	$(9,209)	$-	$(9,209)

• 68 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

	Transactio	Reclassificatio	Other
	ns of	n and	comprehensi	Income
Other comprehensive profit and loss	current	adjustment of	ve profit and	tax	Amount
constituents	period	currentperiod	loss	expense	after tax
For the years ended December 31, 2022
Items not reclassified to profit and loss:
Remeasurements of defined benefit plan	$20,496	$-	$20,496	$-	$20,496
Unrealized appraisal benefits of equity
instrument investment measured at fair
value through other comprehensive loss	(37,315)	-	(37,315)	-	(37,315)
Remeasurements of defined benefit plan
of affiliated enterprises under the
equity method	232	-	232	-	232
Unrealized appraisal benefits of equity
instrument investment measured at fair
value through other comprehensive
profit of affiliated enterprises under the
equity method	(4,278)	-	(4,278)	-	(4,278)
Total amount of items not reclassified to
profit and loss:	(20,865)	-	(20,865)	-	(20,865)
Items that may be reclassified to profit
and loss subsequently:
Exchange difference from the conversion
of the financial statements of foreign
operating institutions of subsidiaries
under the equity method	103,268	-	103,268	-	103,268
Total	$82,403	$-	$82,403	$-	$82,403

(26) Income tax

• (A) The Company’s business income tax return filed before 2021 (inclusive) were reviewed and approved by the tax collection agency.

• 69 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

• (B) The income tax expense constituents:

• (a) Income tax recognized in profit and loss

Income tax recognized in profit and loss
Current income tax expense Current income tax expense Deferred income tax expense Origin of temporary difference and reversing relevant deferred income tax (benefits) expense Income tax expense	Years Ended December 31
	2023 $110,413 70,828 $181,241	2022
		$158,950 55,695
		$214,645

• (b) The Group had no income tax related to other comprehensive profit and loss constituents or direct debited or credited to equity for the years ended December 31, 2023 and 2022, respectively.

• (C) The relationship between income tax expense and accounting profit

Accounting profit Net income before tax of the continuing business unit Tax calculated according to the applicable tax rate in the respective country Unappropriated earnings with business income tax levied additionally Adjustments Income tax effect of non-deductible expense in tax return Income tax (profit ) expense on repatriation of foreign funds under special law Income tax effect of temporary difference Current income tax expense Deferred income tax (profit) expense Income tax expense	Years Ended December 31	Years Ended December 31
	2023 $856,281 $171,256 15,463 (4,489) (989) (70,828) 110,413 70,828 $181,241	2022
		$1,082,248
		$216,449 5,643 (6,371) (1,076) (55,695)
		158,950 55,695
		$214,645

• 70 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(D) The deferred income tax assets and liabilities are analyzed as follows:

For the years ended December 31, 2023 Deferred income tax assets Unrealized inventory loss in valuation Unrealized financial assets and liabilities loss in valuation Unrealized exchange losses Financial and tax difference of property, plant and equipment Total Deferred income tax liabilities Unrealized long-term equity investment income For the years ended December 31, 2022 Deferred income tax assets Unrealized inventory loss in valuation Unrealized financial assets loss in valuation Unrealized exchange loss Financial and tax difference of property, plant and equipment Total Deferred income tax liability Unrealized long-term equity investment income	Balance -ending	Recognized in profit and loss	Recognized in other profit and loss	Balance -ending
	$6,185 15,907 804 2,969	$468 (13,981) 582 260	$- - - -	$6,653 1,926 1,386 3,229
	$25,865	$(12,671)	$-	$13,194
	$616,436	$58,157	$-	$674,593
	$7,461 16,535 2,013 2,708	$(1,276) (628) (1,209) 261	$- - - -	$6,185 15,907 804 2,969
	$28,717	$(2,852)	$-	$25,865
	$563,593	$52,843	$-	$616,436

• (E) Unrecognized deferred income tax assets:

The Company’s unrecognized deferred income tax assets were NT$0 as of December 31, 2023 and 2022 respectively.

• 71 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(27) Earnings per share

(A) Basic earnings per share

The basic earnings per share are calculated by dividing the profit and loss attributable to the company’s common stock shareholders by the outstanding weighted average common stock shares in the current period as follows:

common stock shares in the current period	as follows:	as follows:
Net profit attributable to the company’s Common stock shareholders Beginning Outstanding Shares Employee stock option – subscribing issue new shares (Note) Outstanding weighted average shares Basic earnings per share (after tax) (NTD)	For theyears ended December 31,
	2023 $675,040 190,654,298 shares 7,288 190,661,586 shares $3.54	2022
		$867,603
		187,832,298 shares 1,537,587
		189,369,885 shares
		$4.58

Note：Calculated based on the period of circulation of each subscription.

(B) Diluted earnings per share

The diluted earnings per share are calculated by having the dilutive potential common stock share effect adjusted to the profit and loss attributable to the common stock shareholders of the company divided by the dilutive potential common stock share effect adjusted to the outstanding weighted average shares of the period as follows:

Net profit to the company’s common stock shareholders Add: Potential common stock share effect Adjusted net profit to the company’s common stock shareholders Outstanding weighted average shares Add: Potential common stock share effect Employee stock option hypothesis -subscribing new shares (Note) Employee Remuneration hypothesis –issuing new shares Adjusted weighted average shares Diluted basic earnings per share (after tax) (NTD)	For theyears ended December 31,	For theyears ended December 31,
	2023 $675,040 - $675,040 190,661,586 shares 2,445,783 400,752 193,508,121 shares $3.49	2022
		$867,603 -
		$867,603
		189,369,885 shares 3,234,583 586,277
		193,190,745 shares
		$4.49

• 72 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

Note ： The Company issued employee stock options In June 2023 and August 2023. Due to their anti-dilutive nature, they were not included in the calculation of diluted earnings per share for the year 2023. Similarly, outstanding employee stock options issued in 2022 were not included in the calculation of diluted earnings per share for the year 2022 due to their anti-dilutive nature.

(28) Reconciliation of liabilities from financing activities

Accounting item	Balance -beginning	Cash flow		Changes in non-cash	Changes in non-cash	Changes in non-cash
			Transaction of current period	Change in exchange rate	Other $- - $- $- - $-	Balance -ending
		$140,000 (79,032)	$- -	$- -		$1,210,000 -
	$1,149,032	$60,968	$-	$-		$1,210,000
		$(190,000) 2,708	$- -			$1,070,000 79,032
				$- -
Short-term loan Long-term borrowings (including current portion) Total
	$1,336,324	$(187,292)	$-	$-		$1,149,032

(29) Lease

Other lease information is as follows:

Other lease information is as follows:
Short-term lease expense Low-value asset lease expenses Changes in lease expense excluded from the measurement of a lease liability Total cash outflow of all leases Lease liabilities interest	Years Ended	December 31
	2023	2022
	$1,870	$1,694
	$-	$-
	$-	$-
	$1,870	$1,694
	$-	$-

• 73 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

The Company elects to recognize an exemption for short-term leases of dormitories, offices, and similar assets, and does not recognize related right-of-use assets and lease liabilities for such leases.

7. RELATED PARTY TRANSACTIONS

(1) Name of related party and relationship

Name of related party and relationship
Name of relatedparty	Relationshipwith the Group
G-SHANK ENTERPRISE (M) SDN. BHD. (MALAYSIA G-SHANK) G-SHANK, Inc. SHANGHAI G-SHANK PRECISION MACHINERY CO., LTD. (SHANGHAI G-SHANK) GREAT-SHANK CO., LTD. (THAILAND G-SHANK) G-SHANK JAPAN CO., LTD. (JAPAN G-SHANK) XIAMEN G-SHANK PRECISION MACHINERY CO., LTD.(XIAMEN G-SHANK) QINGDAO G-SHANK PRECISION SDN.BHD. (QINGDAO G-SHANK) G-SHANK PRECISION MACHINERY (SUZHOU) CO., LTD.(SUZHOU G-SHANK) G-LONG PRECISION MACHINERY (DONG GUAN) CO., LTD.(DONG GUAN G-LONG) TIANJIN G-SHANK PRECISION MACHINERY CO., LTD.(TIANJIN G-SHANK) PT INDONESIA G-SHANK PRECISION (INDONESIA G-SHANK) SHENZHEN G-SHANK PRECISION SDN.BHD. (SHENZHEN G-SHANK ) SHENZHEN G-BAO PRECISION SDN.BHD. (SHENZHEN G-BAO) SUNFLEX TECHNOLOGY CO., LTD. (SUNFLEX) KUAI LUNG PRECISION INDUSTRY CO., LTD. (KUAI LUNG)	The subsidiary of the Company. The subsidiary of the Company. The subsidiary of the Company. The subsidiary of the Company. The subsidiary of the Company. The subsidiary of the Company. The subsidiary of the Company. The subsidiary of the Company. The subsidiary of the Company. The subsidiary of the Company. The subsidiary of the Company. The subsidiary of the Company. The subsidiary of the Company. SUNFLEX is invested by the company under equity method. The chairman of KUAI LUNG is the general manager of G-LONG PRECISION MACHINERY (DONG GUAN) CO., LTD., the subsidiary of the company.

• 74 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(2) Major transactions with related parties

(A) Purchases

Purchases
Relatedpartycategory/name Subsidiaries SUZHOU G-SHANK SHENZHEN G-SHANK JAPAN G-SHANK SHANGHAI G-SHANK THAILAND G-SHANK SHENZHEN G-BAO TIANJIN G-SHANK Subtotal Other related parties KUAI LUNG Affiliated enterprises SUNFLEX Total	For theyears ended December 31,
	2023 $1,478 694 470 279 167 77 66 3,231 314 9,465 $13,010	2022
		$550 143 2,850 9 107 565 -
		4,224
		170
		16,268
		$20,662

The aforementioned purchase is mostly for molds and parts with special specifications from one single supplier. Therefore, there is no other purchase price available for comparison. The payment term from such a single supplier is OA 60-90 days; while other suppliers are with a payment term of OA 0-120 days.

(B) Sales

Sales
Relatedpartycategory/name Subsidiaries MALAYSIA G-SHANK G-SHANK, Inc. THAILAND G-SHANK JAPAN G-SHANK SHENZHEN G-BAO INDONESIA G-SHANK SHANGHAI G-SHANK QINGDAO G-SHANK Subtotal	For theyears ended December 31,
	2023 $5,819 5,671 4,595 2,899 2,221 784 310 27 22,326	2022
		$5,919 11,000 5,217 2,122 1,911 1,988 371 171
		28,699

(Continuing to next page)

• 75 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(Continued from the last page)

(Continued from the last page)
Relatedpartycategory/name Other related parties KUAI LUNG Affiliated enterprises SUNFLEX Total	For theyears ended December 31, 2023 2022 - 17 56 32 $22,382 $28,748
		2022
		17 32
		$28,748

The products sold in the preceding paragraph are mostly equipment, tools, and materials used for production with the price negotiated by both parties by adding a percentage to the cost or by the cost price at the time of trade depending on the type of product traded; also, taking into account the expenses and exchange rate risk. The specifications of products that are sold to related parties are exclusive; therefore, there is no other customer available for comparison. The payment term of sales to a related party is OA 30-90 days; while the general customer is with a payment term of OA 30-150 days.

(C) Management and technical service income

The Company had collected management and technical service fees from the subsidiaries - SHANGHAI G-SHANK, TIANJIN G-SHANK, QINGDAO G-SHANK, THAILAND G-SHANK, MALAYSIA G-SHANK , SHENZHEN G-SHANK, XIAMEN G-SHANK, DONG GUAN G-LONG, SHENZHEN G-BAO, and SUZHOU G-SHANK for an amount of NT$60,896 thousand and NT$71,920 thousand in 2023 and 2022, respectively and had them booked in the “ non-operating income and expenses - other income ” account.

(D) Processing expense

The company had contracted the affiliated enterprise, SUNFLEX TECHNOLOGY CO., LTD., for product proceeding with a processing expense of NT$14,139 thousand and NT$16,572 thousand incurred for the years ended December 31, 2023 and 2022, respectively.

• 76 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(E) Others

• (a) The Company had paid Japan G-SHANK, the subsidiary, for the management and technical support services and overseas information collection services for an amount of NT$530 thousand and NT$546 thousand in 2023 and 2022, respectively.

• (b) The Company commissioned its affiliated enterprise, Sunsoft Electronics, to procure employee uniforms on its behalf in 2023 for an amount of NT$143 thousand.

(F) Financing

The Company's situation regarding loans to related parties is as follows:

The Company's situation regarding loans to related parties is as follows:
Type and name of relatedparty Max. balance amount Ending balance amount Interest rate range	Total interest income
For the years ended December 31,2023：None For the years ended December 31,2022 Subsidiary JAPAN G-SHANK $55,260 $ 1% (USD1,800,000)	$128
For the years ended December 31,2022 Subsidiary JAPAN G-SHANK $55,260 (USD1,800,000)

• 77 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(G) Claims/obligations arising from the aforementioned transactions

	Relatedpartycategory/name Accounts receivable-related party Subsidiaries THAILAND G-SHANK MALAYSIA G-SHANK G-SHANK, Inc. SHENZHEN G-BAO SHANGHAI G-SHANK QINGDAO G-SHANK JAPAN G-SHANK INDONESIA G-SHANK Subtotal Affiliated enterprises SUNFLEX Total Other receivable-related party Subsidiaries THAILAND G-SHANK G-SHANK, Inc. JAPAN G-SHANK Total Accounts payable-related party Subsidiaries SUZHOU G-SHANK SHANGHAI G-SHANK TIANJIN G-SHANK JAPAN G-SHANK Subtotal Other related parties KUAI LUNG Affiliated enterprises SUNFLEX Total	December 31,2023 $799 782 216 141 49 26 10 - 2,023 3 $2,026 $874 66 10 $950 $618 133 13 - 764 195 1,082 $2,041	December 31,2022
(a) (b) (c)			$907 1,689 914 250 38 54 195 49
			4,096
			15
			$4,111
			$2,190 226 3
			$2,419
			$232 5 - 2
			239
			-
			11,289
			$11,528

• 78 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

	Relatedpartycategory/name Other payable-related party Subsidiaries JAPAN G-SHANK SHENZHEN G-BAO SHENZHEN G-SHANK SHANGHAI G-SHANK QINGDAO G-SHANK XIAMEN G-SHANK Subtotal Affiliated enterprises SUNFLEX Total	December 31,2023 $70 30 19 9 4 - 132 2,574 $2,706	December 31,2022
(d)			$407 - - - - 10
			417
			3,250
			$3,667

The claims/obligations between the Company and the related party are without collateral or guarantee received or provided, and a conclusion is made after thorough evaluations that it is no need to appropriate allowance for loss for the Company’s claims against the related parties.

(H) Information on total remunerations of key management personnel

The total remunerations to the Company’s directors, general manager, vice general manager, and other managerial officers are summarized as follows:

Items Short-term benefits Retirement benefits Share-based payment Total	For theyears ended December 31,	For theyears ended December 31,
	2023 $12,259 353 72 $12,684	2022
		$11,696 367 179
		$12,242

The remuneration to key management personnel is determined by the Company’s Remuneration Committee with reference to the general standards of the industry and taking into account personal performance, the company operating performance, and related future risks.

• 79 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

8. MORTGAGED ASSETS

None.

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACTUAL COMMITMENTS

The Company had the following significant contingent liabilities and unrecognized contractual commitments not yet included in the aforementioned the parent company only financial report as of December 31, 2023:

• (1) The company had had a guaranteed loan from financial institutions for the tariff guarantee amount of NT$500 thousand on December 31, 2023.

• (2) The company has signed contracts for the acquisition of real estate, factory buildings, and equipment with a total amount of NT$1,550,000 thousand (including tax), of which the unpaid amount is NT$1,240,000 thousand (including tax).

10. SIGNIFICANT DISASTER LOSS

None.

11. MATERIAL POST EVENTS

• (1) As stated in Note 6.(14)(C) of the individual financial report, in the fourth quarter of the year 2023, the employees of this company exercised their subscription rights for 190,000 shares (recorded as Advance Receipts for Capital Stock ). Subsequently, on March 8, 2024, the Board of Directors resolved to set the capital increase reference date on March 8, 2024.

• 80 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

• (2) The company decided to carry out a cash capital increase on October 27, 2023, as approved by the board of directors. Please refer to Note 6.(16)(F) in the individual financial statements.

• (3) The Company proposed the distribution of profits for the year 2023 and the issuance of cash to shareholders and of the capital surpluses to shareholders at a board meeting on March 8, 2024 (subject to approval at the shareholders' meeting scheduled for June 14, 2024). Please refer to Note 6.(20)(C) in the individual financial statements for more information.

• (4) The company decided to issue its second unsecured convertible corporate bonds domestically on October 27, 2023, and obtained approval from the Financial Supervisory Commission on December 28, 2023, which became effective. The aforementioned corporate bonds were issued on January 26, 2024, and listed for trading on the Taipei Exchange Exchange (referred to as the "TPEx"). The main terms of the issuance are as follows:

(A) Issuance amount：

The total face value of the issuance is NT$1,000,000 thousand, with each bond having a face value of NT$100 thousand . The bonds were issued at 113.80% of face value, resulting in a total actual raised amount of NT$1,137,967 thousand.

• (B) Issuance period：

The issuance period is three years, from January 26, 2024, to the maturity date of January 26, 2027.

• (C) Type of bonds：

Unsecured Convertible Corporate Bonds.

• (D) Coupon Rate and Repayment Method of Bonds：

The coupon rate is 0%. Except for conversion into the company's common stock as stipulated by the conversion method or repurchase and cancellation by the company through securities firms, within ten business days from the day following the maturity date of these convertible bonds, the company will redeem the bonds in cash at face value.

• 81 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(E) Conversion Period:

Bondholders may convert the convertible bonds from the day after the issuance date of the convertible bonds (April 27, 2024), which is three months after the issuance date, until the maturity date (January 26, 2027), except during the following periods of the Company: (a) Fifteen business days prior to the ex-date of non-dilutive rights offerings, ex-date of cash dividends, or ex-date of rights offering for cash subscription; (b) From the record date for reduction of capital to one day prior to the commencement of trading of the shares issued due to reduction of capital; (c) From the commencement date of suspension of conversion for stock denomination change to one day prior to the commencement of trading of the new shares issued due to stock denomination change; (d) Except for periods when the transfer of ordinary shares is temporarily suspended by law, bondholders may at any time through their brokerage firm inform the Taiwan Depository & Clearing Corporation (hereinafter referred to as the "TDCC") to request conversion into common stock of the Company according to the conversion method through the Company's share registrar agent.

(F) Conversion Price and Adjustments:

The conversion price was set at NT$72.2 per share at the time of issuance, with January 08, 2024 as the reference date for setting the conversion price. Following the issuance of these convertible bonds, except for various securities issued or privately placed by the Company that have the right to convert into ordinary shares or share subscription rights, or the issuance of new shares for employee compensation, in the event of an increase in the Company's issued or privately placed ordinary shares (including but not limited to cash capital increase, profit conversion increase, capital surplus conversion increase, issuance of new shares by individual or transfer of shares of other companies, stock splits, participation in overseas depositary receipts issuance through cash capital increase, and increase in issued ordinary shares due to changes in stock face value), the conversion price shall be adjusted according to the formula specified in the issuance terms. Adjustments shall also be made in the event of the Company distributing cash dividends on ordinary shares, issuing various securities with the right to convert into ordinary shares or subscription rights at a conversion or subscription price lower than the prevailing market price per share, or granting others the right to subscribe for company shares at a price lower than the prevailing market price per share, except for reductions in ordinary shares due to the cancellation of treasury shares by the Company.

• 82 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD. (Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

• (G) Redemption Rights of the Company on the Convertible Bonds:

From the day after three months have elapsed since the issuance of these convertible bonds (April 27, 2024) until forty days before the maturity date (December 17, 2026), if the closing price of the Company's common stock exceeds thirty percent of the conversion price for thirty consecutive business days, the Company may, within the subsequent thirty business days, send a registered letter containing a one-month notice of redemption to the bondholders and notify the Taipei Exchange of the exercise of its redemption rights. Within five business days after the redemption date, the Company shall redeem all the bonds in cash at face value. Furthermore, if the outstanding balance of the convertible bonds in circulation falls below ten percent of the original total issuance, the Company may, at any subsequent time, send a registered letter containing a one-month notice of redemption to the bondholders and notify the Taipei Exchange of the exercise of its redemption rights. Within five business days after the redemption date, the Company shall redeem all the bonds in cash at face value.

As of the date of the individual financial statements' approval for release, there have been no instances of bondholders applying to convert the aforementioned bonds into the Company's common stock.

12. OTHERS

• (1) Capital management

• (A) The Company’s capital management is aimed to ensure the Company’s ongoing concern, to continue to provide remuneration to shareholders and benefits to stakeholders, and to maintain the best capital structure in order to reduce capital costs and to set the price of products or services according to the relative risk levels in order to provide shareholders with sufficient remuneration.

• (B) The Company bases on the risk ratio to set the capital stock; also, manage and adjust the capital structure appropriately in accordance with the changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the dividends paid to shareholders, refund shareholders by de-capitalization, and issue new shares or sell assets to settle liabilities.

• 83 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

• (2) Financial risk management

• (A) The Company's main financial instruments include cash and cash equivalents, financial assets measured at fair value through profit or loss, other financial assets, financial assets measured at fair value through other comprehensive income, short-term loans, long-term loans, and accounts receivable and accounts payable arising from operating activities. These financial instruments are utilized to manage the Company's working capital requirements. As a result, the Company's operations are subject to various financial risks, including market risks (such as foreign exchange risk, interest rate risk, and other price risks), credit risk, and liquidity risk. The overall objective of the Company's financial risk management is to mitigate potential adverse impacts arising from fluctuations in financial markets on the Company's exposure to financial risks.

• (B) The Finance Department of the Company is responsible for identifying, evaluating, and hedging financial risks through close contact with the business units of the Company, planning and coordinating the access to domestic and international financial markets, and manages the Company’s operation related financial risks by analyzing the degree of risk exposure; also, the Company’s board of directors is responsible for supervision and management. In addition, the Group uses derivative financial instruments to hedge risk exposure at an appropriate time to reduce the impact of financial risks. The Company has the procedures for derivative financial instrument transactions stipulated that have been approved by the board of directors and the shareholders meeting. The said procedures include trade principles and policies, risk management measures, internal audit systems, regular evaluation methods, and handling of nonconformities, of which, the risk management includes credit, market prices, liquidity, cash flow, operations, law, etc.

• (C) The main risks of the Company’s financial instruments are as follows:

  • (a) Market risk

The main market risks of the Company are exchange rate risks arising from operating activities, such as sales or purchases denominated in non-functional currencies, and interest rate risks or price risks arising from financial instruments transactions.

• 84 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(i) Exchange rate risk

• (01) The Company evaluates and analyzes the overall exchange rate risk. When the listed assets and liabilities and future business transactions are exposed to significant exchange rate risk, within the permitted range of the policy, manage risk through forwarding exchange contract.

The Company’s financial assets and liabilities denominated in non-functional currencies with significant risk exposure of exchange rate fluctuations on the reporting date, and sensitivity analysis information are as follows, sensitivity analysis is regarding the impact of the Company’s financial assets and liabilities denominated in non-functional currencies appreciated by 5% against a respective foreign currency that is the functional currency of each overseas subsidiary on the net income before tax or equity on the reporting date; also, when it depreciated by 5%, it will affect the net income before tax and equity reversely:

Foreign currency (Thousand) December 31, 2023 Financial assets Monetary items USD $22,653 JPY 11,189 RMB 3,221 Non-monetary items USD $42,976 Derivative financial instrument: USD $11	Foreign currency (Thousand)	Exchange rate	Book amount	Sensitive analysis	Sensitive analysis	Sensitive analysis
				Change ratio	Increase/ decrease in net income before tax	Decrease in Equity
		30.71 0.2174 4.329 30.71 30.71	$695,682 2,432 13,942 $1,319,783 $348 (Note)	5% 5% 5% 5% 5%	$34,784 122 697 $65,989 $17	$- - - $- $-

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Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

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(Unit amount in NT$ Thousand, unless otherwise specified)

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(Continued from the last page)
Foreign currency (Thousand) Exchange rate Book amount	Sensitive analysis
	Change ratio Increase/ decrease in net income before tax Decrease in Equity
December 31, 2023 Financial liabilities Monetary items USD $118 30.71 $3,612 JPY 2,332 0.2174 507 Non-monetary items: None Derivative financial instrument:None December 31, 2022 Financial assets Monetary items USD $44,953 30.7 $1,380,053 JPY 13,147 0.2325 3,057 RMB 1,928 4.409 8,499 Non-monetary items USD $24,636 30.7 $756,331 Derivative financial instrument: USD $204 30.7 $6,254 (Note) Financial liabilities Monetary items USD $219 30.7 $6,713 JPY 16,980 0.2325 3,948 RMB 1,067 4.409 4,705	5% $181 $- 5% 25 - 5% $69,003 $- 5% 153 - 5% 425 - 5% $37,817 $- 5% $313 $- 5% $336 $- 5% 197 - 5% 235 -

Non-monetary items: None

Derivative financial instrument: None

• 86 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

• Note: The aforementioned derivatives information refers to the book amount of the SWAP contracts that have not yet been settled on each reporting day. Please refer to Note 6.(2) of the parent company only financial report for the operation position, nominal principal, and due date.

The exchange profit and loss (including realized and unrealized) of the Company’s monetary items converted to functional currencies, and the exchange rate for the conversion to the reporting currency of the parent company only financial report are as follows:

Functional currency NTD	2023 Exchange profit(loss) Average exchange rate $11,525 -	2022	2022
	Exchange profit(loss) $11,525	Exchange profit(loss) $59,020	Average exchange rate
			-

• (02) In addition, the SWAP contracts held by the Company are a financial hedging operation intended to hedge exchange rate risk arising from the change (mainly including sales and purchases denominated in non-functional currencies, such as USD) in the exchange rate of foreign claims. Regarding the aforementioned SWAP contracts, the profit and loss arising from changes in the exchange rate will generally offset the profit and loss of the hedged project, so there is no significant market risk. As for the aforementioned hedged project, the net position of foreign currency claims that are not effectively hedged is linked to the market risk of changes in exchange rates, of which, the depreciation or appreciation of USD, RMB, MYR, or JPY will result in the risk of exchange profit or loss.

(ii) Interest rate risk

The Company’s interest rate risks include the fair value interest rate risk of the financial instruments with fixed interest rate and the cash flow interest rate risk of financial instruments with floating interest rate. The financial instruments with fixed interest rate refer to the company’s time deposits, some

• 87 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

financial assets-current measured at fair value through profit and loss, financial assets measured at amortized cost, some other financial assets-current and some bank loans; the financial instruments with floating rate refer to savings deposits, some other financial assets-current, some other noncurrent assets-others, and some bank loans. The Company has interest rate risk evaluated and analyzed on a dynamic basis and controlled the interest rate risk exposure by maintaining an appropriate combination of fixed and floating interest rates. The Company expects no significant interest rate risk.

(01) The Company’s financial assets and liabilities with fixed and floating interest rates

interest rates
Fixed interest rate Financial assets Financial liabilities Net amount Floating interest rate Financial assets Financial liabilities Net amount	December 31,2023 $1,831,380 (1,210,000) $621,380 $101,391 - $101,391	December 31,2022
		$1,953,010 (1,070,000)
		$883,010
		$122,584 (79,032)
		$43,552

(02) Sensitivity Analysis

For the Company’s financial assets and liabilities with a floating interest rate, if the interest rate of market deposits or loans increased by 0.5% on the reporting date, assuming that it is held for an accounting year and all other factors are given, it would cause the Company’s net income before tax increased by NT$507 thousand and NT$218 thousand for the years of 2023 and 2022 respectively.

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Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(iii) Other price risks

The Company’s beneficiary certificates and equity securities, such as financial assets measured at fair value through profit and loss and financial assets measured at fair value through other comprehensive profit and loss, are with price risk resulted. The Company manages the price risk of beneficiary certificates and equity securities by holding investment portfolios with different risks.

Sensitivity Analysis

For the Company’s financial assets measured at fair value through profit and loss and financial assets measured at fair value through other comprehensive profit and loss, the impact of the beneficiary certificates and equity securities with a 5% price increase on the net income before tax or equity on the reporting date is as follows; also, the beneficiary certificates and equity securities with a 5% price decrease will affect the net income before tax or equity reversely:

Increase in net income before tax Financial assets measured at fair value through profit and loss Increase in equity Financial assets measured at fair value through other comprehensive profit and loss	December 31, 2023 $65,989 $16,045	December 31, 2022
		$37,817
		$13,101

(b) Credit risk

• (i) The Company’s credit risk is mainly the potential impact of the counterparty or other parties’ failure in performing financial assets contracts, which includes the concentration of credit risks, constituents, contract amounts, and other receivables of the financial assets transactions of the Company. In order to reduce credit risk, the Company has dealt with all well-known domestic and foreign financial or securities institutions for bank deposits, financial assets measured at fair value through profit and loss, financial assets measured at amortized cost, some other financial assets, which are with low credit risk. For receivables, the Company continues to evaluate the financial

• 89 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

status of the counterparties, historical experience, and other factors to adjust the trade amount and trade method of individual customers appropriately in order to improve the Company’s credit-granting quality.

• (ii) The Company evaluates and analyzes the overdue or impairment of financial assets on the balance sheet date. The Company’s credit risk exposure amount is as follows:

is as follows:
Credit risk exposure amount Allowance for losses-measured by the expected credit losses amount for 12-month Allowance loss-measured by the expected credit loss amount throughout the duration - Accounts receivable Total	December 31, 2023 $- 622 $622	December 31, 2022
		$- 430
		$430

The aforementioned credit risk exposure amounts are all from the recovery of accounts receivable. The Company has continuously evaluated the losses that affect the estimated future cash flow of accounts receivable with appropriate allowance accounts appropriated. Therefore, the book amount of accounts receivable is with credit risk properly considered and reflected. In addition, the Company does not hold collateral for the impairment of financial assets that is with an allowance account appropriated.

• (iii) The expected credit loss of the Company’s notes and accounts receivable as of September 30, 2023, December 31, 2022 is analyzed as follows:

December 31, 2023 Not overdue 30 days overdue 31-90 days overdue 91-180 days overdue 181-365 days overdue Total	Total book amount of notes and accounts receivable $408,488 20,117 7,030 34 - $435,669	Reserve matrix (loss rate) 0.01% 0.17% 7.65% 1.58% 0.00%	Allowance for loss (expected credit loss throughout the duration)
			$49 34 538 1 -
			$622

• 90 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

December 31, 2022 Not overdue 30 days overdue 31-90 days overdue 91-180 days overdue 181-365 days overdue Total	Total book amount of notes and accounts receivable Reserve matrix (loss rate) $542,765 0.01% 17,948 0.20% 3,361 9.55% 1,208 0.44% 81 0.00% $565,363	Allowance for loss (expected credit loss throughout the duration) $68 36 321 5 -
		$430

(iv) The concentration of credit risk of accounts receivable is analyzed as follows:

The concentration of credit risk	of accounts receivable is	analyzed as follows:
The accounts receivable ratio of the top five customers	December 31, 2023 47.40%	December 31, 2022
		59.83%

(c) Liquidity risk

The Company manages and maintains sufficient cash and cash equivalents to support all contractual obligations for business operations and to minimize the impact of cash flow fluctuations. Bank loans are an important source of liquidity to the Company. The management ensures the repeating bank loans through capital structure management, monitoring the use of bank credit line, and complying with loan contract terms to reduce liquidity risk. The Company’s stock investment under the financial assets measured at fair value through other comprehensive profit and loss is exposed to liquidity risk due to lack of an active market. In addition, the exchange rate of the Company’s SWAP contract has been determined; therefore, there is no significant cash flow risk.

(i) Bank loan amount

December 31, 2023 December 31, 2022 Short-term loan $3,059,500 $1,520,468

• 91 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(ii) Maturity analysis of undiscounted financial liabilities

December 31, 2023 Non-derivative financial liabilities Short-term loan Accounts payable Accounts payable -related party Other payables Other payables -related party Total	Less than 1year	More than 1-2years $- - - - - $-	More than 2-5years	Over 5years	Total
	$1,216,423 149,351 2,041 275,060 2,706		$- - - - -	$- - - - -	$1,216,423 149,351 2,041 275,060 2,706
	$1,645,581		$-	$-	$1,645,581

Derivative financial liabilities: None

December 31, 2022 Non-derivative financial liabilities Short-term loan Accounts payable Accounts payable -related party Other payables Other payables -related party Long-term loans Total	$1,075,100 209,214 11,528 299,216 3,667 39,393	$- - - - - 39,741 $39,741	$- - - - - 781	$- - - - - -	$1,075,100 209,214 11,528 299,216 3,667 79,915
	$1,638,118		$781	$-	$1,678,640

Derivative financial liabilities: None

(D) Fair value of financial instruments

The book amount of the Company’s financial instruments is an amount reasonably close to the fair value.

• 92 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

• (a) The methods adopted for the fair value of financial instruments and the assumptions adopted for the use of evaluation techniques

• (i) The fair value of short-term financial instruments is estimated according to the book value on the balance sheet. Such financial instruments are with a short maturity date; also, the present value of future cash flows discounted at the market interest rate is close to the book amount; therefore, the book amount should be a reasonable basis for estimating the fair value. This method is applied to cash and cash equivalents, net notes receivable, net accounts receivable (including related parties), other receivables (including related parties), short-term loans, accounts payable (including related parties), and other payables (including related parties).

• (ii) Financial assets measured at fair value through profit and loss are those with active market quotations, and therefore, the fair value is determined based on the market price. For foreign bonds, the fair value is determined based on the quotations on the reporting date through Bloomberg, Reuters or other brokers and trading platforms.

• (iii) Financial assets measured at fair value through other comprehensive income are equity instrument investments without active market quotations. The fair value is estimated using the Market Approach, which is based on the prices derived from the market transactions of the same or comparable equity instruments and other relevant information.

• (iv) The fair value of other financial assets and other noncurrent assets-restricted assets is estimated according to the book amount, since the present value of future cash collected and discounted at the market interest rate is close to the book amount; therefore, the book amount should be a reasonable basis for estimating the fair value.

• (v) The evaluation of derivative financial instruments is based on the evaluation models that are widely accepted in the market, such as, discount method and option pricing model.

• 93 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

• (vi) The Group ’ s long-term loans are based on floating interest rates with the fair value estimated according to the book amount on the balance sheet, which has been adjusted with reference to market conditions. Therefore, the company ’ s loan interest rate is close to the market interest rate.

• (b) Classification of fair value measurement

All assets and liabilities measured or disclosed at the fair value are classified to the respective fair value level according to the lowest level input value critical to the overall fair value measurement. The input values for each level are as follows:

Level 1: The market price (unadjusted) available for the same asset or liability on the measurement date;

• Level 2: Direct or indirect observable input values of assets or liabilities, except for those quotations in Level 1;

• Level 3: Unobservable input value of assets or liabilities;

The assets and liabilities that were originally measured at fair value on a repetitive basis and recognized on the balance sheet should be reassessed for classification at the end of each reporting period to determine whether there is a swift between the levels of the fair value hierarchy.

• (i) The classification of financial instruments measured at fair value and recognized in the balance sheet

The Group does not have assets and liabilities measured at fair value on a non-repetitive basis. The fair value level of assets and liabilities measured at fair value on a repetitive basis is as follows:

• 94 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

December 31, 2023 Assets: Financial assets measured at fair value through profit and loss Bonds Swap contract Financial assets measured at fair value through other comprehensive profit and loss Unlisted stocks Liabilities:None December 31, 2022 Assets: Financial assets measured at fair value through profit and loss Bonds Swap contract Financial assets measured at fair value through other comprehensive profit and loss Unlisted stocks Liabilities:None	Lever 1 $- - - $- - -	Level 2 $1,319,783 348 - $756,331 6,254 -	Level 3 $- - 320,903 $- - 262,023	Total
				$1,319,783 348 320,903 $756,331 6,254 262,023

• (ii) There were no significant transfers between Level 1 and Level 2 fair value hierarchy in the company's 2023 fiscal year. The company's overseas bonds were deemed illiquid and classified as non-active market debt instruments, resulting in an amount of NT$648,836 thousand transferring from Level 1 to Level 2 in the second quarter of 2022.

• 95 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(iii) The adjustment of the fair value measurement in Level 3 is as follows:

Balance -beginning Total profit Recognized in other comprehensive profit and loss Balance -ending	Financial assets measured at fair value through other comprehensiveprofit and loss	Financial assets measured at fair value through other comprehensiveprofit and loss
	Equityinstrument investment – Unlisted stocks
	For theyears ended December 31,
	2023 $262,023 58,880 $320,903	2022
		$299,338 (37,315)
		$262,023

The Company had recognized total current (loss) profit for an amount of NT$58,880 thousand and NT$(37,315) thousand in other comprehensive profit and loss due to change in Level 3 fair value for the years of 2023 and 2022, respectively, and they were booked in the “other comprehensive profit and loss -unrealized appraisal profit of equity instrument investment measured ” at fair value through other comprehensive profit and loss .

• (iv) The evaluation techniques and assumptions adopted to measure the fair value of financial assets.

• (01) The fair value of financial assets with standard terms and conditions that are traded in an active market is determined by referring to market price.

• (02) The foreign bonds are determined by quotations on the reporting date through Bloomberg, Reuters or other brokers and trading platforms.

• (03) The exchange transaction contracts are based on the discounted cash flow methods. Future cash flows are estimated at the forward exchange rate observable on the reporting date and the exchange rate set in the contract, and discounted at a discount rate that can reflect the credit risk of each counterparty.

• (04) The fair value of domestic unlisted equity instrument investment is evaluated with the Market Approach.

• 96 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

• (v) Quantitative information on the fair value measurement of significant unobservable input values (Level 3):

Evaluation technique Significant unobservable input value Quantitative information Relationship between the input value and fair value December 31,2023 Financial assets Financial assets measured at fair valuethrough other comprehensive profit and loss: Stock Market Approach Similar company’s stock price-to-net value ratio 2.67 The higher the stock price-to-net value ratio of similar companies, the higher the estimated fair value December 31,2022 Financial assets

Sensitivity analysis of the relationship between the input value and fair value

When the stock price-to-net value ratio of similar companies increases (decreases) by 5%, the equity of the Company will increase/decrease by NT$16,045 thousand.

Financial assets measured at fair value through other comprehensive profit and loss:

Stock	Market	Similar	2.45	The higher the stock	When the stock price-to-net
	Approach	company’s stock		price-to-net value	value ratio of similar
		price-to-net		ratio of similar	companies increases
		value ratio		companies, the	(decreases) by 5%, the
				higher the	equity of the Company
				estimated fair value	will increase/decrease by
					NT$13,101 thousand.

• (vi) The evaluation process for the fair value measurement of significant unobservable input values (Level 3):

The Accounting Department of the Company is responsible for fair value verification, using independent sources of information to bring the evaluation results closer to the market, confirming that the data source is independent, reliable, consistent with other data resources, and representing executable prices. Also, analyze the value change in the assets and liability that must be re-measured or re-evaluated on the reporting date according to the Company’s accounting policies to ensure the reasonableness of the evaluation result.

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Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

13. SUPPLEMENTARY DISCLOSURE MATTERS

(1) Information on major transactions

Supplementary information of the company and the subsidiaries for the year ended December 31, 2023 is disclosed as follows:

(A) Loans to others:

															Unit: NT$ Thousand / USD	Unit: NT$ Thousand / USD
No	Lending company	Borrower	Accounting item	Related party	Maximum amount -current	Balance – ending (12.31.2022) (Note 2)	Actual amount implemented (Note 3)	Interest rate range	Nature of loan	Transac -tion amount	Reason for short-term loan	Allowance for bad debt appropriated	Collateral		Loaning of fund limit to individual (Note 1)	Total loaning of fund limit (Note 1)
													Name	Value
1	SHANGHAI G-SHANK PRECISION MACHINERY CO., LTD.	SHANGHAI G-SHANK PRECISION HARDWARE CO., LTD	Other accounts receivable -related party	Yes	77,922 (RMB18,000,000)	43,290 (RMB10,000,000)	43,290 (RMB10,000,000)	-	Short -term loan	-	Business operation of affiliated enterprise	-	-	-	$225,058 (RMB 51,988,363)	$900,230 (RMB 207,953,451)

Note 1: The total loaning of fund limit refers to an amount equivalent to 40% of the current net value of the lending company. The loaning of fund limit to individual refers to

an amount equivalent to 10% of the current net value of the lending company. The current net value is based on the latest financial statements audited by an independent auditor.

Note 2: It is the loaning of fund amount resolved by the company’s board of directors.

Note 3: It is the actual outstanding loan amount at yearend.

(B) Provision of endorsements and guarantees to others: None

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Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(C) Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures):

Unit: NT$ Thousand / RMB / THB / USD

Holding company	Type of securities	Name of securities	Relationship with the securities issuer	Accounting title		December 31,2023	December 31,2023		Remarks
					Shares /unit /1,000 shares	Book amount	Shareholding ratio (%)	Fair value /net value
G-SHANK ENTERPRISE CO., LTD.	Stocks	REEL MASK INDUSTRY CO., LTD.	None	Financial assets-noncurrent measured at fair value through other comprehensiveprofit and loss	3,392,713	$320,903	9.98	$320,903
	Bonds	HSBC Holding bonds HSBC 6 RERP(I)	None	Financial assets-current measured at fair value throughprofit and loss	3,100,000	91,029 (USD 2,964,158)	-	91,029 (USD 2,964,158)
	Bonds	Macquarie Group Limited bonds MQGAU 6 1/8 PERP	None	Financial assets-current measured at fair value through profit and loss	1,400,000	39,940 (USD 1,300,544)	-	39,940 (USD 1,300,544)
	Bonds	Societe Generale bonds SOCGEN 6.75 PERP	None	Financial assets-current measured at fair value through profit and loss	2,000,000	54,671 (USD 1,780,220)		54,671 (USD 1,780,220)
	Bonds	BCS-Barclays Plc bonds BACR 8 PERP	None	Financial assets-current measured at fair value throughprofit and loss	200,000	6,106 (USD 198,826)	-	6,106 (USD 198,826)
	Bonds	BCS-Barclays Plc bonds BACR 9.625 PERP(I)	None	Financial assets-current measured at fair value throughprofit and loss	940,000	30,096 (USD 979,997)	-	30,096 (USD 979,997)
	Bonds	BCS-Barclays Plc bonds BACR 9.625 PERP(II)	None	Financial assets-current measured at fair value throughprofit and loss	2,990,000	95,505 (USD 3,109,899)	-	95,505 (USD 3,109,899)
	Bonds	Societe Generale bonds SOCGEN 10 PERP(I)	None	Financial assets-current measured at fair value throughprofit and loss	2,830,000	93,050 (USD 3,029,968)	-	93,050 (USD 3,029,968)
	Bonds	HSBC Holding bonds HSBC 6.547 PERP	None	Financial assets-current measured at fair value throughprofit and loss	200,000	6,433 (USD 209,466)	-	6,433 (USD 209,466)
	Bonds	HSBC Holding bonds HSBC 8 PERP(I)	None	Financial assets-current measured at fair value throughprofit and loss	500,000	15,924 (USD 518,520)	-	15,924 (USD 518,520)

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Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

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						Unit: NT$Thousand / RMB / THB / USD	Unit: NT$Thousand / RMB / THB / USD	Unit: NT$Thousand / RMB / THB / USD	Unit: NT$Thousand / RMB / THB / USD
Holding company	Type of securities	Name of securities	Relationship with the securities issuer	Accounting title		December 31,2023			Remarks
					Shares /unit /1,000 shares	Book amount	Shareholding ratio (%)	Fair value /net value
G-SHANK ENTERPRISE CO., LTD.	Bonds	HSBC Holding bonds HSBC 8 PERP(II)	None	Financial assets-current measured at fair value throughprofit and loss	787,000	$24,918 (USD 811,397)	-	$24,918 (USD 811,397)
	Bonds	Internationale Nederlanden Group N.V. bonds INTNED 7 1/2 PERP	None	Financial assets-current measured at fair value through profit and loss	500,000	15,371 (USD 500,535)	-	15,371 (USD 500,535)
	Bonds	HSBC Holding bonds HSBC 6 3/8 PERP	None	Financial assets-current measured at fair value throughprofit and loss	1,000,000	30,451 (USD 991,550)	-	30,451 (USD 991,550)
	Bonds	HSBC Holding bonds HSBC 6 PERP(II)	None	Financial assets-current measured at fair value throughprofit and loss	500,000	14,648 (USD 476,985)	-	14,648 (USD 476,985)
	Bonds	HSBC Holding bonds HSBC 6.5 PERP	None	Financial assets-current measured at fair value throughprofit and loss	500,000	14,836 (USD 483,100)	-	14,836 (USD 483,100)
	Bonds	BNP Paribas bonds BNP 5.1/8 PERP	None	Financial assets-current measured at fair value throughprofit and loss	200,000	5,294 (USD 172,396)		5,294 (USD 172,396)
	Bonds	Societe Generale bonds SOCGEN 10 PERP(II)	None	Financial assets-current measured at fair value throughprofit and loss	2,308,000	75,855 (USD 2,470,045)		75,855 (USD 2,470,045)
	Bonds	BNP Paribas bonds BNP 8.5 PERP	None	Financial assets-current measured at fair value throughprofit and loss	800,000	25,791 (USD 839,840)	-	25,791 (USD 839,840)
	Bonds	HSBC Holding bonds HSBC 6 PERP(III)	None	Financial assets-current measured at fair value throughprofit and loss	700,000	20,411 (USD 664,629)		20,411 (USD 664,629)
	Bonds	DB-Deutsche Bank AG bonds DB 7.5 PRRP(I)	None	Financial assets-current measured at fair value through profit and loss	1,600,000	47,899 (USD 1,559,712)	-	47,899 (USD 1,559,712)
	Bonds	DB-Deutsche Bank AG bonds DB7.5PRRP(II)	None	Financial assets-current measured at fair value through profit and loss	800,000	$23,908 (USD 778,520)	-	$23,908 (USD 778,520)

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						Unit: NT$Thousand / RMB / THB / USD	Unit: NT$Thousand / RMB / THB / USD	Unit: NT$Thousand / RMB / THB / USD	Unit: NT$Thousand / RMB / THB / USD
Holding company	Type of securities	Name of securities	Relationship with the securities issuer	Accounting title		December31,2023			Remarks
					Shares /unit /1,000 shares	Book amount	Shareholding ratio (%)	Fair value /net value
G-SHANK ENTERPRISE CO., LTD.	Bonds	BCS-Barclays Plc bonds (2022) BACR 8 PRRP(I)	None	Financial assets-current measured at fair value through profit and loss	2,290,000	68,653 (USD 2,235,521)	-	68,653 (USD 2,235,521)
	Bonds	BCS-Barclays Plc (2022) bonds BACR8PERP(II)	None	Financial assets-current measured at fair value through profit and loss	800,000	23,952 (USD 779,952)	-	23,952 (USD 779,952)
	Bonds	Societe Generale bonds SOCGEN 9.3/8 PERP (I)	None	Financial assets-current measured at fair value throughprofit and loss	1,280,000	41,071 (USD 1,337,370)	-	41,071 (USD 1,337,370)
	Bonds	Societe Generale bonds SOCGEN 9.3/8 PERP (II)	None	Financial assets-current measured at fair value throughprofit and loss	1,300,000	41,678 (USD 1,357,135)	-	41,678 (USD 1,357,135)
	Bonds	Societe Generale bonds SOCGEN 10 PERP(III)	None	Financial assets-current measured at fair value throughprofit and loss	1,500,000	49,004 (USD 1,595,700)	-	49,004 (USD 1,595,700)
	Bonds	BNP Paribas bonds BNP 9.25 PERP(I)	None	Financial assets-current measured at fair value through profit and loss	3,000,000	98,552 (USD 3,209,130)	-	98,552 (USD 3,209,130)
	Bonds	BNP Paribas bonds BNP 9.25 PERP(II)	None	Financial assets-current measured at fair value throughprofit and loss	1,200,000	39,440 (USD 1,284,288)		39,440 (USD 1,284,288)
	Bonds	Mitsubishi UFJ Financial Group bonds MUFG 8.2 RERP(I)	None	Financial assets-current measured at fair value through profit and loss	200,000	6,693 (USD 217,934)	-	6,693 (USD 217,934)
	Bonds	Mitsubishi UFJ Financial Group bonds MUFG 8.2 RERP(II)	None	Financial assets-current measured at fair value through profit and loss	300,000	10,014 (USD 326,070)	-	10,014 (USD 326,070)
	Bonds	UBS Group Bonds UBS 9.25 PERP(5Y)(I)	None	Financial assets-current measured at fair value through profit and loss	1,800,000	$59,621 (USD 1,941,408)	-	$59,621 (USD 1,941,408)
	Bonds	UBS Group Bonds UBS 9.25 PERP(10Y)(I)	None	Financial assets-current measured at fair value through profit and loss	3,100,000	105,648 (USD 3,440,194)	-	105,648 (USD 3,440,194)

(Continuing to next page)

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Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(Continued from the last page)

						Unit: NT$Thousand / RMB / THB / USD	Unit: NT$Thousand / RMB / THB / USD	Unit: NT$Thousand / RMB / THB / USD	Unit: NT$Thousand / RMB / THB / USD
Holding company	Type of securities	Name of securities	Relationship with the securities issuer	Accounting title		December 31,2022			Remarks
					Shares /unit /1,000 shares	Book amount	Shareholding ratio (%)	Fair value /net value
G-SHANK ENTERPRISE CO., LTD.	Bonds	UBS Group Bonds UBS 9.25 PERP(5Y)(II)	None	Financial assets-current measured at fair value through profit and loss	1,000,000	33,099 (USD 1,077,800)		33,099 (USD 1,077,800)
	Bonds	UBS Group Bonds UBS 9.25 PERP(10Y)(II)	None	Financial assets-current measured at fair value through profit and loss	300,000	10,222 (USD 332,583)		10,222 (USD 332,583)
CHIN DE INVESTMEN T CO., LTD.	Bonds	HSBC Holding bonds HSBC 6 PERP	None	Financial assets-current measured at fair value throughprofit and loss	470,000	13,704 (USD 446,251)	-	13,704 (USD 446,251)
	Bonds	Societe Generale bonds SOCGEN 10 PERP	None	Financial assets-current measured at fair value throughprofit and loss	860,000	28,265 (USD 920,381)	-	28,265 (USD 920,381)
GREAT-SHAN K CO., LTD.	Funds	KFAFIX-A	None	Financial assets-current measured at fair value throughprofit and loss	3,099,082	32,070 (THB 35,672,909)	-	32,070 (THB 35,672,909)
	Funds	BBL-AIBP6-23	None	Financial assets-current measured at fair value throughprofit and loss	1,320,000	11,938 (THB 13,278,804)	-	11,938 (THB 13,278,804)
	Funds	SCBCP3M45	None	Financial assets-current measured at fair value throughprofit and loss	700,000	6,307 (THB 7,015,680)	-	6,307 (THB 7,015,680)
	Funds	SCBFIXEDA	None	Financial assets-current measured at fair value throughprofit and loss	1,799,652	17,389 (THB 19,342,837)	-	17,389 (THB 19,342,837)
	Funds	SCBINCA	None	Financial assets-current measured at fair value throughprofit and loss	960,642	9,019 (THB 10,031,797)	-	9,019 (THB 10,031,797)
	Funds	SCBSF6MT7	None	Financial assets-current measured at fair value throughprofit and loss	900,000	8,155 (THB 9,071,100)	-	8,155 (THB 9,071,100)

(D) Acquisition or sale of the same security with the accumulated cost exceeding NT$300 million or 20% of the Company’s paid-in capital: None

• 102 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

• (E) Acquired real estate for an amount of more than NT$300 million or 20% of the paid-in capital:

Unit: NT$ Thousand

Company Name	Property	Event Date	Transaction Amount	Payment Term	Counterparty		Prior Ttransactions of Related Counter Party	Prior Ttransactions of Related Counter Party	Prior Ttransactions of Related Counter Party	Prior Ttransactions of Related Counter Party	Pricing Reference	Purpose of	Other Term
						Rltinhi
						eaosp	Owner	Relationships	Transfer Date	Aamount		Acquisition
G-SHANK ENTERPRISE CO., LTD.	Land, buildings,	Octemeber 27,2023 (Note1)	$1,550,000	$310,000	FLEX TEK CO., LTD.	None	N/A	N/A	N/A	$-	Note3	For company	None
	and ancillary											operational
	equipment											use

Note 1: As of the end of the reporting period, the seller has not fulfilled the key delivery conditions of the contract, therefore, the advance payment for equipment is temporarily recorded.

Note 2: Refers to the signing date of the transaction.

• Note 3: The company obtained appraisal reports from Cushman & Wakefield Real Estate Appraisal Firm and Jiaju Real Estate Appraisal Firm.

• (F) Disposed real estate for an amount more than NT$300 million or 20% of the paid-in capital ： None

• (G) The purchase or sale of goods with the related party for an amount more than NT$100 million or 20% of the paid-in capital ： None

• (H) Accounts receivable from related parties amounted to more than NT$100 million or 20% of the paid-in capital ： None

• (I) Engage in derivative instruments transactions: Please refer to Notes 6.(2) and 12 of the consolidated financial statements.

• 103 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(J) Business relationship and important transactions and transaction amount between the parent company and subsidiaries and among subsidiaries:

	subsidiaries:
No. (Note 1)	Trading party	Counterparty	Relationship with the trading party (Note 2)		Transactions
				Item	Amount	Transaction conditions	Ratio to total consolidated operating income or total assets (Note 3)
0	G-SHANK ENTERPRISE CO., LTD.	SHANGHAI G-SHANK PRECISION MACHINERY CO., LTD.	1	Sales income Cost of goods sold Other income Accounts receivable -related party Accounts payables -related party Otherpayables -relatedparty	$310 279 23,872 49 133 9	Note 4 Note 5 Note 7	0.01% - 0.42% - - -
0	G-SHANK ENTERPRISE CO., LTD.	G-LONG PRECISION MACHINERY (DONG GUAN)CO.,LTD.	1	Other income	1,064	Note 7	0.02%
0	G-SHANK ENTERPRISE CO., LTD.	XIAMEN G-SHANK PRECISION MACHINERY CO.,LTD.	1	Other income	2,635	Note 7	0.05%
0	G-SHANK ENTERPRISE CO., LTD.	G-SHANK PRECISION MACHINERY (SUZHOU) CO.,LTD	1	Cost of goods sold Other income Accountspayables -relatedparty	1,478 6,851 618	Note 5 Note 7	0.03% 0.12% 0.01%
0	G-SHANK ENTERPRISE CO., LTD.	QINGDAO G-SHANK PRECISION SDN.BHD.	1	Sales income Other income Accounts receivable -related party Otherpayables -relatedparty	27 4,322 26 4	Note 4 Note 7	- 0.08% - -

(Continuing to next page)

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Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(Continued from the last page)

No. (Note 1)	Trading party	Counterparty	Relationship with the trading party (Note 2)		Transactions
				Item	Amount	Transaction conditions	Ratio to total consolidated operating income or total assets (Note 3)
0	G-SHANK ENTERPRISE CO., LTD.	SHENZHEN G-SHANK PRECISION SDN.BHD.	1	Cost of goods sold Other income Otherpayables -relatedparty	$694 2,645 19	Note 5 Note 7	0.01% 0.05% -
0	G-SHANK ENTERPRISE CO., LTD.	TIANJIN G-SHANK PRECISION MACHINERY CO.,LTD.	1	Cost of goods sold Other income Accountspayables -relatedparty	66 4,479 13	Note 5 Note 7	- 0.08% -
0	G-SHANK ENTERPRISE CO., LTD.	G-SHANK, INC.	1	Sales income Accounts receivable -related party Other receivables – relatedparty	5,671 216 66	Note 4	0.10% - -
0	G-SHANK ENTERPRISE CO., LTD.	SHENZHEN G-BAO PRECISION SDN.BHD.	1	Sales income Cost of goods sold Other income Accounts receivable -related party Otherpayables -relatedparty	2,221 77 4,216 141 30	Note 4 Note 5 Note 7	0.04% - 0.07% - -
0	G-SHANK ENTERPRISE CO., LTD.	GREAT-SHANK CO., LTD.	1	Sales income Cost of goods sold Other income Accounts receivable -related party Other receivables – relatedparty	4,595 167 4,101 799 874	Note 4 Note 5 Note 7	0.08% - 0.07% 0.01% 0.01%

(Continuing to next page)

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Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(Continued from the last page)

No. (Note 1)	Trading party	Counterparty	Relationship with the trading party (Note 2)	Transactions	Transactions
				Item	Amount	Transaction conditions	Ratio to total consolidated operating income or total assets (Note 3)
0	G-SHANK ENTERPRISE CO., LTD.	G-SHANK ENTERPRISE (M) SDN. BHD.	1	Sales income Other income Accounts receivable -relatedparty	$5,819 6,711 782	Note 4 Note 7	0.10% 0.12% 0.01%
0	G-SHANK ENTERPRISE CO., LTD.	PT INDONESIA G-SHANK PRECISION	1	Sales income	784	Note 4	0.01%
0	G-SHANK ENTERPRISE CO., LTD.	G-SHANK JAPAN CO., LTD	1	Sales income Cost of goods sold Operating expense Accounts receivable -related party Other receivables – related party Otherpayables -relatedparty	2,899 470 530 10 10 70	Note 4 Note 5 Note 7	0.05% 0.01% 0.01% - - -
1	SHANGHAI G-SHANK RECISION	HONG JING (SHANGHAI) ELECTRONICS CO., LTD.	3	Sales income Cost of goods sold Other profit and loss Accounts receivable -related party Other receivables – related party Otherpayables -relatedparty	2,928 89,970 15,779 862 3,250 26,252	Note 6 Note 6 Note 7	0.05% 1.57% 0.27% 0.01% 0.03% 0.27%
1	SHANGHAI G-SHANK RECISION	.TIANJIN G-SHANK PRECISION MACHINERY CO.,LTD.	3	Sales income	142	Note 6	-

(Continuing to next page)

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Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(Continued from the last page)

No. (Note 1)	Trading party	Counterparty	Relationship with the trading party (Note 2)		Transactions
				Item	Amount	Transaction conditions	Ratio to total consolidated operating income or total assets (Note 3)
1	SHANGHAI G-SHANK RECISION	SHANGHAI G-SHANK PRECISION HARDWARE CO., LTD.	3	Sales income Cost of goods sold Other profit and loss Accounts receivable -related party Other receivables – related party Otherpayables -relatedparty	$2,466 43,261 19,826 597 46,917 8,643	Note 6 Note 6 Note 7	0.04% 0.75% 0.35% 0.01% 0.48% 0.09%
1	SHANGHAI G-SHANK RECISION	GREAT-SHANK CO., LTD..	3	Sales income Other receivables – relatedparty	170 100	Note 6	- -
1	SHANGHAI G-SHANK RECISION	G-SHANK JAPAN CO., LTD	3	Sales income Cost of goods sold Accounts receivable -related party Otherpayables -relatedparty	2,907 16,674 140 4,166	Note 6 Note 6	0.05% 0.29% - 0.04%
1	SHANGHAI G-SHANK RECISION	PT INDONESIA G-SHANK PRECISION	3	Sales income Accounts receivable -relatedparty	7,941 5,246	Note 6	0.14% 0.05%
1	SHANGHAI G-SHANK RECISION	G-SHANK PRECISION MACHINERY (SUZHOU) CO.,LTD.	3	Sales income Cost of goods sold Accounts receivable -relatedparty	289 3,533 258	Note 6 Note 6	0.015 0.06% -
1	SHANGHAI G-SHANK RECISION	G-SHANK ENTERPRISE (M) SDN. BHD.	3	Sales income Cost of goods sold Accountspayables -relatedparty	228 616 159	Note 6 Note 6	- 0.01% -

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Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(Continued from the last page)

No. (Note 1)	Trading party	Counterparty	Relationship with the trading party (Note 2)		Transactions
				Item	Amount	Transaction conditions	Ratio to total consolidated operating income or total assets (Note 3)
1	SHANGHAI G-SHANK ECISION	HUBEI HANSTAR ELECTRONICS TECHNOLOGY CO.,LTD.	3	Sales income Cost of goods sold Accountspayables -relatedparty	$1,878 7,631 922	Note 6 Note 6	0.03% 0.13% 0.01%
1	SHANGHAI G-SHANK ECISION	G-LONG PRECISION MACHINERY (DONG GUAN)CO.,LTD.	3	Sales income Accounts receivable -related party	57 37	Note 6	- -
1	SHANGHAI G-SHANK ECISION	QINGDAO G-SHANK PRECISION SDN.BHD.	3	Sales income Cost of goods sold Otherpayables -relatedparty	1 6,726 1,396	Note 6	- 0.12% 0.01%
2	SHENZHEN G-SHANK PRECISION SDN.BHD.	SHENZHEN G-BAO PRECISION SDN.BHD.	3	Sales income Cost of goods sold Accounts receivable -relatedparty	782 57 657	Note 6 Note 6	0.01% - 0.01%
2	SHENZHEN G-SHANK PRECISION SDN.BHD.	G-LONG PRECISION MACHINERY (DONG GUAN)CO.,LTD.	3	Cost of goods sold Other payables -related party	93 23	Note 6	- -
2	SHENZHEN G-SHANK PRECISION SDN.BHD.	XIAMEN G-SHANK PRECISION MACHINERY CO.,LTD.	3	Sales income	622	Note 6	0.01%
2	SHENZHEN G-SHANK PRECISION SDN.BHD.	G-SHANK PRECISION MACHINERY (SUZHOU) CO.,LTD.	3	Sales income	73	Note 6	-

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Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(Continued from the last page)

No. (Note 1)	Trading party	Counterparty	Relationship with the trading party (Note 2)		Transactions
				Item	Amount	Transaction conditions	Ratio to total consolidated operating income or total assets (Note 3)
2	SHENZHEN G-SHANK PRECISION SDN.BHD.	GREAT-SHANK CO., LTD.	3	Sales income Accounts receivable -related party	$462 252	Note 6	0.01%-
3	G-SHANK PRECISION MACHINERY (SUZHOU)CO.,LTD.	G-SHANK JAPAN CO., LTD.	3	Cost of goods sold	232	Note 6	-
3	G-SHANK PRECISION MACHINERY (SUZHOU)CO.,LTD.	G-LONG PRECISION MACHINERY (DONG GUAN)CO.,LTD.	3	Cost of goods sold	8	Note 6	-
4	G-LONG PRECISION MACHINERY (DONG GUAN)CO.,LTD.	TIANJIN G-SHANK PRECISION MACHINERY CO., LTD.	3	Sales income	110	Note 6	-
4	G-LONG PRECISION MACHINERY (DONG GUAN)CO.,LTD.	SHENZHEN G-BAO PRECISION SDN.BHD.	3	Sales income Accounts receivable -related party	222 125	Note 6	- -
4	G-LONG PRECISION MACHINERY (DONG GUAN)CO.,LTD.	HUBEI HANSTAR ELECTRONICS TECHNOLOGY CO., LTD.	3	Sales income	367	Note 6	0.01%
4	G-LONG PRECISION MACHINERY (DONG GUAN) CO., LTD.	DONGGUAN QIAOJUTRADING CO., LTD.	3	Sales income Other profit and loss Accounts receivable -related party Other receivables – relatedparty	$13,956 158 2,216 30	Note 6	0.24% - 0.02% -

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Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(Continued from the last page)

No. (Note 1)	Trading party	Counterparty	Relationship with the trading party (Note 2)		Transactions
				Item	Amount	Transaction conditions	Ratio to total consolidated operating income or total assets (Note 3)
5	G-SHANK ENTERPRISE (M) SDN. BHD.	G-SHANK JAPAN CO., LTD.	3	Sales income Cost of goods sold Accounts receivable -related party Accountspayables -relatedparty	$6,425 7,897 961 1,526	Note 6 Note 6	0.11% 0.14% 0.01% 0.02%
6	HONG JING (SHANGHAI) ELECTRONICS CO., LTD.	SHANGHAI G-SHANK PRECISION HARDWARE CO., LTD.	3	Sales income	1	Note 6	-
7	G-SHANK JAPAN CO., LTD.	SHENZHEN G-BAO PRECISION SDN.BHD.	3	Cost of goods sold Accountspayables -relatedparty	1,825 15	Note 6	0.03% -
7	G-SHANK JAPAN CO., LTD.	PTINDONESIA G-SHANK PRECISION	3	Sales income	353	Note 6	0.01%
7	G-SHANK JAPAN CO., LTD.	GREAT-SHANK CO., LTD.	3	Other receivables – related party	50		-
7	G-SHANK JAPAN CO., LTD.	XIAMEN G-SHANK PRECISION MACHINERY CO.,LTD.	3	Sales income	44	Note 6	-
7	G-SHANK JAPAN CO., LTD.	TIANJIN G-SHANK PRECISION MACHINERY CO.,LTD.	3	Cost of goods sold Accounts payables -related party	699 92	Note 6	0.01% -

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Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(Continued from the last page)

No. (Note 1)	Trading party	Counterparty	Relationship with the trading party (Note 2)		Transactions
				Item	Amount	Transaction conditions	Ratio to total consolidated operating income or total assets (Note 3)
8	QINGDAO G-SHANK PRECISION SDN.BHD	TIANJIN G-SHANK PRECISION MACHINERY CO.,LTD.	3	Sales income Accounts receivable -related party	$633 122	Note 6	0.01% -

Note 1: Business transactions conducted between the parent company and subsidiaries should be noted in the “No.” column as follows:

• (a) Fill in “0” for the parent company;

• (b) The subsidiaries are numbered sequentially starting from the Arabic number “1” by the company type.

• Note 2: The “relationship with the trading companies” includes three types (The same transaction between parent company and subsidiary or between two subsidiaries needs not to be disclosed repeatedly, for example, if the parent company has already disclosed the transaction conducted with the subsidiary, the subsidiary does not need to have it disclosed again. If one of the two subsidiaries has already disclosed the transaction conducted, the other subsidiary does not need to have it disclosed again), which should be marked as follows:

• (a) The parent company to the consolidated subsidiary;

• (b) Consolidate subsidiary to parent company;

• (c) Consolidated subsidiary to consolidated subsidiary;

• Note 3: For the ratio of the transaction amount to the consolidated total operating income or total assets, if it is an asset or liability item, it is calculated for the ratio of the ending balance amount to the consolidated total assets; if it is a profit and loss item, it is calculated for the ratio of the interim cumulative amount to total consolidated operating income.

• 111 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

Note 4: The products sold are mostly equipment, tools, and materials used for production with the price negotiated by both parties by adding a percentage to the cost or by the cost price of trade depending on the type of product traded; also, taking into account the expenses and exchange rate risk. However, the specifications of products that are sold to related parties are exclusive; therefore, there is no other customer available for comparison. The payment term of sales to a related party is OA 60-150 days.

• Note 5: The purchase is mostly for molds and parts with special specifications from one single supplier. Therefore, there is no other purchase price available for comparison. The payment term for such single supplier is OA 60-120 days.

• Note 6: The collection (payment) term is OA 90-150 days according to the contract signed.

• Note 7: It is calculated and collected according to the contract signed.

• 112 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(2) Re-investment business-related information

Supplementary disclosure of information related to the company’s direct or indirect significant influence, control, or joint venture equity on the investee company not in Mainland China for the nine-month period ended December 31, 2023.

									Unit：NTD Thousand/USD/MYR	Unit：NTD Thousand/USD/MYR	Unit：NTD Thousand/USD/MYR
Investor Company	Investee Company	Location	Main business operation	Original investment amount (Note 12)		As of December 31, 2023			Current profit (loss) of the Investee Company	Investment profit (loss) recognized in current period (Note 11)	Footnote
				December 31, 2023	December 31, 2022	Number of shares	Ratio (%)	Book amount (Note 11)
G-SHANK ENTERPRISE CO., LTD.	CHIN DE INVESTMENT CO.,LTD.	Note 1	General investment	$50,000	$50,000	5,000,000	100.00	$54,271	$1,558	$1,558
	GRAND STAR ENTERPRISES L.L.C.(Note 2)	Note 2	General investment	590,864	590,864	-	100.00	1,615,801	115,862	115,968
	G-SHANK, INC.	Note 3	Stamping parts molds, fixtures	36,686	36,686	1,000	100.00	375,076	24,107	24,210
	G-SHANK ENTERPRISE (M)SDN. BHD.	Note 4	Stamping parts molds, fixtures	85,112	85,112	6,924,750	92.33	409,297	80,359	74,378
	GREAT-SHANK CO., LTD.	Note 5	Precision progressive die and hardware products	69,509	69,509	7,968,750	85.00	132,100	19,881	16,897
	G-SHANK JAPAN CO.,LTD.	Note 6	International trade	19,749	19,749	1,060	58.89	14,678	4,924	2,900
	SUNFLEX TECHNOLOGY CO.,LTD.	Note 7	Manufacturing and trading of electronic components	40,448	40,448	9,940,956	14.48	168,076	68,875	9,977

(Continuing to next page)

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Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(Continued from the last page)

(Continued from the last page)	(Continued from the last page)	(Continued from the last page)	(Continued from the last page)
				Unit：NTD Thousand/USD/MYR
Investor Company	Investee Company	Location	Main business operation	Original investment amount (Note 12)		As of December 31, 2023			Current profit (loss) of the Investee Company	Investment profit (loss) recognized in current period (Note 11)	Footnote
				December 31, 2023	December 31, 2022	Number of shares	Ratio (%)	Book amount (Note 11)
CHIN DE INVESTMENT CO., LTD.	SUNFLEX TECHNOLOGY CO., LTD.	Note 7	Manufacturing and trading of electronic components	217	217	10,000	0.01	172	68,875	10
G-SHANK ENTERPRISE (M)SDN. BHD.	PT INDONESIA G-SHANK PRECISION	Note 8	Stamping parts molds, fixtures	$47,868 (RM7,144,500)	$47,868 (RM7,144,500)	18,800	94.00	$219,834 (RM32,811,117)	$37,862 (RM5,545,933)	-
G-SHANK, INC.	G-SHANK DEMEXICO,S. A. DE C.V.	Note 9	Stamping parts molds, fixtures	4,884 (USD159,025)	4,884 (USD159,025)	-	100.00	32,957 (USD1,073,160)	9,336 (USD300,012)	-
GRAND STAR ENTERPRISES L.L.C.(Note 2)	GLOBAL STAR INTERNATION AL CO., LTD.	Note 10	General investment	590,185 (USD19,218,011)	590,185 (USD19,218,011)	19,218,011	100.00	1,603,243	115,281	-

Note 1: 20F-2, No. 83, Section 1, Chung Hsiao E. Road, Zhongzheng District, Taipei City. Note 2: 201 Rogers Office Building Edwin Wallace Rey Drive George Hill Anguilla. Note 3: 1034 Old Port Isabel Rd., Suite 2 Brownsville, TX 78521, U.S.A.

Note 4: Plot 94, Bayan Lepas Industrial Estate 11900 Bayan Lepas, Penang, Malaysia. Note 5: 116 Moo 1 Hitech Industrial Estate T.Banlane , A.Bang Pa-In , Ayutthaya Thailand 13160 Note 6: 1-17-14, Nishi-Shinbashi ,Excel Annex 8F, Nishi-Shinbashi, Minato-Ku,Tokyo, 105-0003 Japan.

Note 7: No. 522, Nanshang Road, Guishan District, Taoyuan City

Note 8: Jl. Industri Kawasan JABABEKA Tahap Il Block RR 5C-5D Cikarang-Bekasi 17530, Indonesia.

Note 9: NO.15, Gral, Pedro Hinojosa, cd industrial H.Matamoros, Tamps, Mexico.

Note 10: Suite 102, Cannon Place, P.O. Box 712, North Sound Rd., George Town, Grand Cayman, KYl-9006 Cayman Islands.

• Note 11: It is calculated based on the financial statements of the invested companies for the same period audited by the accountants.

Note 12: The original investment amount at the end of the current period and the end of last year is calculated according to the exchange rate on December 31, 2023.

• 114 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(3) Investment in China

• (A) The name, main business operation, paid-in capital, investment methods, remittance in and out of funds, shareholding ratio, investment profit and loss, investment book amount at yearend, remittance in of investment profit and loss, and investment limits of the invested company in China:

company in China:	company in China:	company in China:	company in China:	company in China:
					Unit：NTD Thousand/USD/RMB/HKD
Invested company in China	Main business operation	Paid-in capital	Investment method	Cumulative investment amount remitted out of Taiwan in current period - beginning	Investment amount remitted in or out in currentperiod		Cumulative investment amount remitted out of Taiwan in current period - ending	Current profit (loss) of the invested company	The company’s direct or indirect investment shareholdin gratio(%)	Investment profit (loss) recognized in current period (Note 4)	Book amount of investment - ending	Investment profit remitted into Taiwan as of current period
					Remitted	Remitted
					out	in
SHANGHAI G-SHANK PRECISION MACHINERY CO.,LTD.	Precision progressive die and hardware products	USD 10,000,000 (Note A)	Entrusted investment (Note B)	USD1,700,000	$-	$-	USD1,700,000	$364,333	85.00	$309,683	$1,912,900	$1,763,089 (USD57,410,906)
HONG JING (SHANGHAI) ELECTRONICS CO., LTD.	Precision progressive die and hardware products	USD1,590,000	Investment through the company set up in the third region(Note C)	USD1,275,000	-	-	USD1,275,000	11,984	80.19	9,610	66,719	95,126 (USD3,097,555)
G-LONG PRECISION MACHINERY (DONG GUAN) CO.,LTD.	Precision progressive die and hardware products	USD3,000,000	Investment through the company set up in the third region(Note D)	USD1,530,000	-	-	USD1,530,000	16,698	51.00	8,516	122,152	20,949 (USD682,168)
XIAMEN G-SHANK PRECISION MACHINERY CO.,LTD.	Precision progressive die and hardware products	USD2,500,000	Investment through the company set up in the third region(Note E)	USD1,990,000	-	-	USD1,990,000	(1,242)	79.60	(989)	85,231	70,082 (USD2,282,062)

(Continuing to next page)

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Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(Continued from the last page)

										Unit：NTD Thousand/USD/MYR	Unit：NTD Thousand/USD/MYR	Unit：NTD Thousand/USD/MYR
Invested company in China	Main business operation	Paid-in capital	Investment method	Cumulative investment amount remitted out of Taiwan in current period - beginning	Investment amount remitted in or out in currentperiod		Cumulative investment amount remitted out of Taiwan in current period - ending	Current profit (loss) of the invested company	The company’s direct or indirect investment shareholdin gratio(%)	Investment profit (loss) recognized in current period (Note 4)	Book amount of investment - ending	Investment profit remitted into Taiwan as of current period
					Remitted	Remitted
					out	in
G-SHANK PRECISION MACHINERY (SUZHOU) CO., LTD.	Planer, milling machine or die machine, precision continuous die and hardware products	USD1,400,000	Investment through the company set up in the third region (Note F)	USD1,671,825	$-	$-	USD1,671,825	$46,622	100.00	$46,622	$287,149	$120,151 (USD3,912,452)
QINGDAO G-SHANK PRECISION SDN.BHD.	Precision progressive die and hardware products	USD4,000,000	Investment through the company set up in the third region(Note G)	USD3,342,000	-	-	USD3,342,000	(1,410)	92.83	(1,309)	224,575	333,546 (USD10,861,158)
TIANJIN G-SHANK PRECISION MACHINERY CO.,LTD.	Precision progressive die and hardware products	USD2,500,000	Investment through the company set up in the third region(Note H)	USD2,205,000	-	-	USD2,205,000	37,660	88.20	33,216	214,290	117,207 (USD3,816,588)
SHANGHAI G-SHANK PRECISION HARDWARE CO.,LTD.	Precision progressive die and hardware products	USD300,000	Investment through the company set up in the third region(Note I)	USD 255,000	-	-	USD255,000	20,725	85.00	17,616	91,720	590,082 (USD19,243,948)
SHENZHEN G-SHANK PRECISION SDN.BHD.	Precision progressive die and hardware products	USD2,600,000	Investment through the company set up in the third region(Note J)	USD2,440,000	-	-	USD2,440,000	(24,911)	93.85	(23,379)	97,289	8,007 (USD260,742)

(Continuing to next page)

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Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(Continued from the last page)

Uni t： NTD Thousand/USD/MYR

Invested company in China	Main business operation	Paid-in capital	Investment method	Cumulative investment amount remitted out of Taiwan in current period - beginning	Investment amount remitted in or out in currentperiod	Investment amount remitted in or out in currentperiod	Cumulative investment amount remitted out of Taiwan in current period - ending	Current profit (loss) of the invested company	The company’s direct or indirect investment shareholdin gratio(%)	Investment profit (loss) recognized in current period (Note 4)	Book amount of investment - ending	Investment profit remitted into Taiwan as of current period
					Remitted	Remitted
					out	in
SHENZHEN G-BAO PRECISION SDN.BHD.	Precision progressive die and hardware products	USD3,150,000	Investment through the company set up in the third region (Note K)	USD2,880,000	$-	$-	USD2,880,000	$30,836	91.43	$28,194	$428,040	$151,612 (USD4,936,848)
HUBEI HANSTAR ELECTRONICS TECHNOLOGY CO., LTD. (Note 5)	Precision progressive die and hardware products, electroplating processing	RMB19,000,000 (Note 6)	Transfer investment of SHANGHAI G-SHANK PRECISION HARDWARE CO.,LTD.	-	-	-	-	(1,606)	100.00	(1,606)	85,860	-
DONGGUAN QIAOJU TRADING CO., LTD. (Note 5)	Plastic hardware wholesale and import/export business	HKD3,000,000	Transfer investment of G-LONG PRECISION MACHINERY (DONG GUAN) CO., LTD.	-	-	-	-	2,473	100.00	2,473	36,659	-
HUI ZHOU G-BAO PRECISION SDN.BHD. (Note 5)	Precision progressive die and hardware products	RMB55,000,000	Transfer investment of SHENZHEN G-BAO PRECISION SDN.BHD.	-	-	-	-	2,142	100.00	2,142	241,576	-

• 117 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

Cumulative investment amount remitted out from Taiwan to China atyearend(Note 1)	Investment amount approved by the Investment Commission,MOEA(Notes 1 and 2)	The investment amount limit stipulated by the Investment Commission,MOEA(Note 3)
$647,555 (USD21,086,140)	$867,787 (USD28,257,472)	$4,050,906

• Note 1: It includes the net amount of USD1,797,315 derived from the approved investment of GSYUE DG TOOLING CO.,LTD. for USD2,730,000 and net of the liquidating investment fund remitted in for USD932,685.

• Note 2: It includes the capital increase from earnings of SHANGHAI G-SHANK PRECISION MACHINERY CO., LTD. in May 2001 and October 2004, and the capital increase from earnings of QINGDAO G-SHANK PRECISION SDN.BHD. in January 2019.

• Note 3: According to the “Principles for the Review of Investment or Technical Cooperation in Mainland China” stipulated by the Investment Commission, MOEA the company’s investment in China is limited to 60% of the net worth or consolidated net worth, whichever is higher. However, the enterprises that are with the certification document to evidence its meeting the operation scope of the headquarters issued by the Industrial Development Bureau, MOEA is not subject to this limit. The company had applied to the Industrial Development Bureau, MOEA for approval as the corporate operation headquarters on April 18, 2019 that would be valid from March 29, 2021 to March 28, 2024 for the investment in China, which had not violated the investment limit of the Investment Commission, MOEA.

• Note 4: The Company's share of profit or loss from subsidiaries accounted for using the equity method for the year 2023 is calculated based on the audited financial statements of these investee companies for the same period.

• Note 5: It is an investment made through the invested company in China; therefore, it is unnecessary to report to the Investment Commission MOEA and is not included in the “Cumulative investment amount remitted out from Taiwan to China.”

• Note 6 ： HUBEI HANSTAR ELECTRONICS TECHNOLOGY CO., LTD. originally had a paid-in capital of RMB 30,000,000. In May 2023, it carried out a reduction of capital and refunded RMB 11,000,000 to shareholders, resulting in a revised paid-in capital of RMB 19,000,000.

• 118 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

• Note A ： SHANGHAI G-SHANK PRECISION MACHINERY CO., LTD. had a paid-in capital of US$2,000 thousand originally. It had arranged a capital increase from earnings for an amount of US$2,500 thousand and US$5,500 thousand in May 2001 and October 2004, respectively. As of December 31, 2023, SHANGHAI G-SHANK PRECISION MACHINERY CO., LTD. had a paid-in capital of US$10,000 thousand.

• Note B ： The company has signed a power of attorney with G-SHANK ENTERPRISE (M) SDN. BHD. (hereinafter referred to as the “trustee”), a business entity of the company in the third region, to indirectly establish SHANGHAI G-SHANK PRECISION MACHINERY CO., LTD. in China with the related party, Yuhuang Lin. The main content of the power of attorney is as follows:

• (a) The company designated the trustee to invest US$1,700,000 (including bank transfer of US$1,250,000 and machinery and equipment for an amount of US$450,000) in SHANGHAI G-SHANK PRECISION MACHINERY CO., LTD. in China.

• (b) The trustee is to apply to the competent authorities in China to invest and establish SHANGHAI G-SHANK PRECISION MACHINERY CO., LTD. in the name of the trustee.

• (c) The trustee upon receiving income or benefits from SHANGHAI G-SHANK PRECISION MACHINERY CO., LTD. should have it transferred to the company entirely.

• (d) If SHANGHAI G-SHANK PRECISION MACHINERY CO., LTD. is to return the investment funds due to capital reduction, business termination, or other reasons, the trustee upon receiving such refund shall have it transferred to the company entirely.

• (e) The trustee shall notify the company when transferring investment funds, benefits, or income due to the reasons stated in the last two preceding paragraphs according to the instruction of the company.

• (f) The trustee’s rights and obligations in SHANGHAI G-SHANK PRECISION MACHINERY CO., LTD. are transferred to the company due to this entrusted investment relationship; therefore, the trustee does not guarantee the income and profit and loss.

• (g) The trustee shall exercise due diligence to manage investment, foreign exchange settlement, and benefit collection.

• (h) The matters not addressed in the power of attorney shall be handled in accordance with the law and regulations of the Republic of China, domestic and foreign banking practices, and other regulations.

• 119 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

• Note C ： HON YEH INVESTMENT CO., LTD., a subsidiary of the company, was approved by the Investment Commission, MOEA by issuing the (90) Tou-Shen-II-Tzi No. 90010260 (Investment Commission, MOEA had the (90) Shen-II-Tzi No. 90010260 amended by issuing the (95) Shen-II-Tzi No. 095004988 on 03.03.2006), and the company was approved by the Investment Commission, MOEA by issuing the Shen-II-Tzi No. 093031757 Letter to invest in GLOBAL STAR INTERNATIONAL CO., LTD. through GRAND STAR ENTERPRISES L.L.C. in the third region and then it indirectly invested in HONG JING (SHANGHAI) ELECTRONICS CO., LTD. HONG JING (SHANGHAI) ELECTRONICS CO., LTD. had arranged a capital increase in cash on November 1, 2012; however, the company did not subscribe shares proportionally to the shareholding ratio; therefore, the company’s shareholding ratio was 80.19% thereafter.

• Note D ： HON YEH INVESTMENT CO., LTD., a subsidiary of the company, was approved by the Investment Commission, MOEA by issuing the (90) Tou-Shen-II-Tzi No. 90010259 and Jin-Shen-II-Tzi No. 91015965, and the company was approved by the Investment Commission, MOEA by issuing the Jin-Shen-II-Tzi No. 092042580 Letter and Jin-Shen-II-Tzi No. 093031432 Letter to invest in GLOBAL STAR INTERNATIONAL CO., LTD. through GRAND STAR ENTERPRISES L.L.C. in the third region and then it indirectly invested in G-LONG PRECISION MACHINERY (DONG GUAN) CO., LTD.

• Note E ： HON YEH INVESTMENT CO., LTD., a subsidiary of the company, was approved by the Investment Commission, MOEA by issuing the (90) Tou-Shen-II-Tzi No. 90022866, and the company was approved by the Investment Commission, MOEA by issuing the Jin-Shen-II-Tzi No. 092042581 Letter and Jin-Shen-II-Tzi No. 093006075 Letter to invest in GLOBAL STAR INTERNATIONAL CO., LTD. through GRAND STAR ENTERPRISES L.L.C. in the third region and then it indirectly invested in XIAMEN G-SHANK PRECISION MACHINERY CO., LTD.

• Note F ： HON YEH INVESTMENT CO., LTD., a subsidiary of the company, was approved by the Investment Commission, MOEA by issuing the (90) Tou-Shen-II-Tzi No. 90001835, Jin-Shen-II-Tzi No. 091031112, and Jin-Shen-II-Tzi No. 92008940 to invest in GLOBAL STAR INTERNATIONAL CO., LTD. through GRAND STAR ENTERPRISES L.L.C. in the third region and then it indirectly invested in G-SHANK PRECISION MACHINERY (SUZHOU) CO., LTD. Subsequently, 5.86% (investment amount of US$82 thousand) and 2% (investment mount US$28 thousand) of the shareholding was transferred to non-related parties, Mr. Bershin Lo and Mr. Guodong Hsu, in March 2003, respectively. The company’s shareholding was reduced to 92.14 % thereafter that was approved by the Investment Commission, MOEA by issuing the Jin-Shen-II-Tzi No. 092010563 Letter. HON YEH INVESTMENT CO., LTD., a subsidiary of the company, had paid US$23 thousand to acquire the 2% (investment amount US$28 thousand) shareholding from Mr.

• 120 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

Guodong Hsu on January 5, 2007 with the shareholding increased to 94.14% thereafter and it was approved by the Investment Commission, MOEA by issuing the Jin-Shen-II-Tzi No. 09500329480 Letter. The company’s board of directors had resolved on June 13, 2019 to acquire the 5.86% (investment amount US$361 thousand) shareholding from the non-related party, Mr. Bershin Lo, and it was approved by the Investment Commission, MOEA by issuing the Jin-Shen-II-Tzi No. 10800157300 Letter with the comprehensive shareholding increased to 100% thereafter.

• Note G ： HON YEH INVESTMENT CO., LTD., a subsidiary of the company, was approved by the Investment Commission, MOEA by issuing the (90) Shen-II-Tzi No. 90010261, Jin-Shen-II-Tzi No. 91039369, Jin-Shen-II-Tzi No. 092003008 Letter, and Jin-Shen-II-Tzi No. 094008181 to invest in GLOBAL STAR INTERNATIONAL CO., LTD. through GRAND STAR ENTERPRISES L.L.C. in the third region and then it indirectly invested in QINGDAO G-SHANK PRECISION SDN.BHD. Subsequently, 5% (investment amount of US$130 thousand), 2.23% (investment mount US$58 thousand), and 0.58% (investment amount US$15 thousand) of the shareholding was transferred to non-related parties, Mr. Shenwei Guo, Mr. Hongjun Li, and Mr. Bangyong Liu, in March 2003, respectively. The company’s shareholding was reduced to 92.19 % thereafter that was approved by the Investment Commission, MOEA by issuing the Jin-Shen-II-Tzi No. 092010560 Letter. QINGDAO G-SHANK PRECISION SDN.BHD. had arranged capital increase in cash on November 25, 2006; however, the company did not subscribe shares proportionally to the shareholding ratio; therefore, the company’s shareholding ratio was 92.83% thereafter. QINGDAO G-SHANK PRECISION SDN.BHD. had a paid-in capital of US$3,600 thousand and then arranged a capital increase from earnings for an amount of US$400 thousand in January 2019 and the paid-in capital of QINGDAO G-SHANK PRECISION SDN.BHD. was US$4,000 thousand thereafter.

• Note H ： The Company was approved by the Investment Commission, MOEA by issuing the Jin-Shen-II-Tzi No. 092044159, Jin-Shen-II-Tzi No. 093005557, and Jin-Shen-II-Tzi No. 093006249 Letter to invest in GLOBAL STAR INTERNATIONAL CO., LTD. through GRAND STAR ENTERPRISES L.L.C. in the third region and then it indirectly invested in TIANJIN G-SHANK PRECISION MACHINERY CO., LTD.

• Note I ： The Company was approved by the Investment Commission, MOEA by issuing the Jin-Shen-II-Tzi No. 095026420 Letter to indirectly invest in SHANGHAI G-SHANK PRECISION HARDWARE CO., LTD. through G-SHANK ENTERPRISE (M) SDN. BHD. in the third region. Then it was approved for amendment by the Investment Commission, MOEA by issuing the Jin-Shen-II-Tzi No. 095032048 Letter to invest in SHANGHAI G-SHANK PRECISION HARDWARE CO., LTD. through GLOBAL STAR INTERNATIONAL CO., LTD. that was invested by GRAND STAR

• 121 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

ENTERPRISES L.L.C. in the third region. The investment fund was transferred through GRAND STAR ENTERPRISES L.L.C. to GLOBAL STAR INTERNATIONAL CO., LTD. for an amount of US$255 thousand on November 18, 2006, and the said amount was then transferred to SHANGHAI G-SHANK PRECISION HARDWARE CO., LTD. on January 20, 2006.

• Note J ： The Company was approved by the Investment Commission, MOEA by issuing the Jin-Shen-II-Tzi No. 09500121350, Jin-Shen-II-Tzi No. 09600108160, and Jin-Shen-II-Tzi No. 09600265810 Letter to invest in GLOBAL STAR INTERNATIONAL CO., LTD. through GRAND STAR ENTERPRISES L.L.C. in the third region and then it indirectly invested in SHENZHEN G-SHANK PRECISION SDN.BHD.

• Note K ： The Company was approved by the Investment Commission, MOEA by issuing the Jin-Shen-II-Tzi No. 09600405610 and Jin-Shen-II-Tzi No. 09700084160 Letter to invest in GLOBAL STAR INTERNATIONAL CO., LTD. through GRAND STAR ENTERPRISES L.L.C. in the third region and then it indirectly invested in SHENZHEN G-BAO PRECISION SDN.BHD. SHENZHEN G-BAO PRECISION SDN.BHD. had arranged capital increase in cash on September 13, 2012; however, the company did not subscribe shares proportionally to the shareholding ratio; therefore, the company’s shareholding ratio was reduced to 91.43% thereafter.

• (B) Significant transactions conducted with the invested companies in China in the current perio d：

• (a) The purchase amount and percentage and the related payable amount and percentage at yearen d: Please refer to Notes 7 and 13.(1)(J) of the consolidated financial report for details.

• (b) The sales amount and percentage and the related receivable amount and percentage at yearend: Please refer to Note 7 and 13.(1)(J) of the consolidated financial report for details.

• (c) The property transaction amount and the profit and loss resulte d： None

• (d) The ending balance and purpose of notes endorsements/guarantees or collateral provided: None

• (e) Maximum balance amount, ending balance amount, interest rate range, and total interest of the current period of loans: Please refer to Note 13.(1)(A) of the consolidated financial report for details.

• (f) Other transactions that have a significant impact on the profit and loss or financial status: Please refer to Notes 13.(1)(J) of the consolidated financial report for details.

• 122 -

Notes to The Parent Company Only Financial Statements of G-SHANK ENTERPRISE CO., LTD.

(Continuing)

(Unit amount in NT$ Thousand, unless otherwise specified)

(4) Major Shareholder information

The name, shareholding, and shareholding ratio for more than 5% of the company’s shareholders ：

Shares	Shareholding (shares)	Shareholding ratio (%)
o Major shareholders
t e JIHONG INVESTMENT CO., LTD. CHEN-LIN INVESTMENT COMPANY	16,089,465 shares 9,883,790 shares	8.43 5.17

• Note 1 ： The information of the major shareholders in this table is based on the shareholders who have received more than 5% common stock shareholding completed with dematerialized registration (including treasury stock) on the last business day of each quarter that is counted by Taiwan Depository & Clearing Corporation. The capital stock recorded in the company’s consolidated financial report and the company’s actual number of shares delivered with dematerialized registration may be different due to different calculation bases adopted.

• Note 2 ： If the aforementioned information is regarding shareholders having their shares delivered to the trust, it is disclosed by the individual account of the principal who entrusts the trustee to open a trust account. As for the shareholder’s reporting 10% or more of insider’s shareholding in accordance with the Securities and Exchange Act, the shareholding includes the principal’s shareholding and the shares delivered to the trust that remains under the control of the principal. Please refer to the Market Observation Post System for the insider’s equity reporting information.

14. DEPARTMENT INFORMATION

The company has disclosed departmental information in the consolidated financial report, so the parent company only financial report may not be disclosed according to regulation.

• 123 -

G-SHANK ENTERPRISE CO., LTD.

1.Statement of Cash and Cash Equivalents

December 31, 2023

			(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)
Item	Description		Amount	Note
Cash and petty cash Checking deposit and savings deposit Time deposits Total	MaturityDate 2024.01.05-2024.08.12	Interest Rates	2,909 $ 112,369 503,960 619,238 $	1.2023.12.31exchange rate： 1 USD = NT30.71 1 JPY = NT0.2174 1 RMB = NT4.329 USD 1,257,612.59 JPY 7,514,678.20 USD 15,980,000.00 RMB 3,052,551.15 3.Time deposits with foreign currency： 2.Demand deposits include foreign currency：
		1.5%~5.913%

• 124 -

G-SHANK ENTERPRISE CO., LTD.

2.Statement of Financial Assets at Fair Value through Profit or Loss - Current

December 31, 2023

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

Name of securities	Shares /unit /1,000 shares	unit cost /face value	Total Amount	Rates	Acquisition cost	Market V	alue	Changes in fair value attributable to changes in credit risk	Note
						Unit Pric($US)	Total Amount
Financial assets-Bonds： HSBC Holdings Bonds HSBC 6 RERP(Ⅰ) Macquarie Bank Bonds MQGAU 6 1/8 PERP DB-Deutsche Bank AG bonds DB 7.5 PERP(Ⅰ) BCS-Barclays Plc bonds BACK 8 PERP BCS-Barclays Plc bonds (2022) BACK 8 PERP(Ⅰ) Societe Generale bonds SOCGEN 9 3/8 PERP(Ⅰ) BNP Paribas bonds BNP 9.25 PERP(Ⅰ) Societe Generale bonds SOCGEN 10 PERP(Ⅰ) UBS Group Bonds UBS 9.25 PERP(5Y)(Ⅰ) UBS Group Bonds UBS 9.25 PERP(10Y)(Ⅰ) Societe Generale bonds SOCGEN 6.75 PERP HSBC Holdings Bonds HSBC 6 PERP(Ⅱ) HSBC Holdings Bonds HSBC 6 3/8 RERP DB-Deutsche Bank AG bonds DB 7.5 PERP(Ⅱ) BCS-Barclays Plc bonds(2022) BACK 8 PERP(Ⅱ) Societe Generale bonds SOCGEN 9 3/8 PERP(Ⅱ) Internationale Nederlanden Group N.V. bonds INTNED 7 1/2 PERP BNP Paribas bonds BNP 8.5 PERP BCS-Barclays Plc bonds BACK 9.625 PERP(Ⅰ) BNP Paribas bonds BNP 9.25 PERP(Ⅱ) HSBC Holdings Bonds HSBC 6.547 RERP HSBC Holdings Bonds HSBC 8 RERP Mitsubishi UFJ Financial Group bonds MUFG 8.2 PERP(Ⅰ) Societe Generale bonds SOCGEN 10 PERP(Ⅱ) UBS Group Bonds UBS 9.25 PERP(5Y)(Ⅱ) UBS Group Bonds UBS 9.25 PERP(10Y)(Ⅱ) BNP Paribas bonds BNP 5 1/8 PERP HSBC Holdings Bonds HSBC 6 RERP(Ⅲ) HSBC Holdings Bonds HSBC 8 RERP(Ⅱ) HSBC Holdings Bonds HSBC 6.5 RERP Mitsubishi UFJ Financial Group bonds MUFG 8.2 PERP(Ⅱ) BCS-Barclays Plc bonds BACK 9.625 PERP(Ⅱ) Societe Generale bonds SOCGEN 10 PERP(Ⅲ) Subtotal Derivative financial instrument:： SWAP contracts Total	3,100,000 1,400,000 1,600,000 200,000 2,290,000 1,280,000 3,000,000 2,830,000 1,800,000 3,100,000 2,000,000 500,000 1,000,000 800,000 800,000 1,300,000 500,000 800,000 940,000 1,200,000 200,000 500,000 200,000 2,308,000 1,000,000 300,000 200,000 700,000 787,000 500,000 300,000 2,990,000 1,500,000 -	USD 99.4998 USD 102.7251 USD 103.1650 USD 105.0000 USD 96.4466 USD 106.9156 USD 105.1167 USD 102.8913 USD 102.3050 USD 104.3819 USD 100.9875 USD 100.4040 USD 99.9500 USD 104.6625 USD 100.0344 USD 106.4498 USD 100.4500 USD 98.9200 USD 104.4400 USD 102.9000 USD 95.2900 USD 100.5160 USD 101.5000 USD 106.3471 USD 101.3340 USD 102.1500 USD 99.1000 USD 101.1714 USD 100.5527 USD 93.3000 USD 101.5850 USD 100.0138 USD 101.7000 -	3,084,494 USD 1,438,152 USD 1,650,640 USD 210,000 USD 2,208,628 USD 1,368,520 USD 3,153,500 USD 2,911,824 USD 1,841,490 USD 3,235,840 USD 2,019,750 USD 502,020 USD 999,500 USD 837,300 USD 800,275 USD 1,383,848 USD 502,250 USD 791,360 USD 981,736 USD 1,234,800 USD 190,580 USD 502,580 USD 203,000 USD 2,454,491 USD 1,013,340 USD 306,450 USD 198,200 USD 708,200 USD 791,350 USD 466,500 USD 304,755 USD 2,990,414 USD 1,525,500 USD	6.000% 6.125% 7.500% 8.000% 8.000% 9.375% 9.250% 10.000% 9.250% 9.250% 6.750% 6.000% 6.375% 7.500% 8.000% 9.375% 7.500% 8.500% 9.625% 9.250% 6.547% 6.000% 8.200% 10.000% 9.250% 9.250% 5.125% 6.000% 6.000% 6.500% 8.200% 9.625% 10.000% -	95,248 $ 45,252 50,185 6,387 66,856 41,571 101,158 92,502 58,668 103,700 59,924 14,957 30,238 23,911 24,639 43,129 15,353 25,248 30,781 38,670 6,148 15,952 6,032 77,896 31,879 9,329 6,354 22,706 24,098 14,103 9,452 91,035 46,401	USD 95.6180 USD 92.8960 USD 97.4820 USD 99.4130 USD 97.6210 USD 104.4820 USD 106.9710 USD 107.0660 USD 107.8560 USD 110.9740 USD 89.0110 USD 95.3970 USD 99.1550 USD 97.3150 USD 97.4940 USD 104.3950 USD 100.1070 USD 104.9800 USD 104.2550 USD 107.0240 USD 104.7330 USD 103.7040 USD 108.9670 USD 107.0210 USD 107.7800 USD 110.9510 USD 86.1980 USD 94.9470 USD 103.1000 USD 96.6200 USD 108.6900 USD 104.0100 USD 106.3800 -	91,029 $ 39,940 47,899 6,106 68,653 41,071 98,552 93,050 59,621 105,648 54,671 14,648 30,451 23,908 23,952 41,678 15,371 25,791 30,096 39,440 6,433 15,924 6,693 75,855 33,099 10,222 5,294 20,411 24,918 14,836 10,014 95,505 49,004
			42,811,287 USD		1,329,762 $		1,319,783
			-		-		348
							1,320,131 $

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G-SHANK ENTERPRISE CO., LTD.

3. Statement of Net Notes Receivable

December 31, 2023

(In Thousands of New Taiwan Dollars)

Client Name	Description		Amount	Note
Notes receivable Client A Client B Others Total Less: Allowance loss Net amount	(Note)		3,532 $ 309 254 4,095 - 4,095 $	The notes receivable in the left column are due to operation.

Note: The balance of each customer does not exceed 5% of the balance of this item.

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G-SHANK ENTERPRISE CO., LTD.

4. Statement of Net Accounts Receivable

December 31, 2023

(In Thousands of New Taiwan Dollars)

Client Name	Description		Amount	Note
Notes receivable Client C Client D Client E Client F Client G Client H Others Total Less: Allowance loss Net amount	(Note)		70,549 $ 51,813 36,514 34,976 28,324 26,316 183,082 431,574 (622) 430,952 $	The notes receivable in the left column are due to operation.

Note: The balance of each customer does not exceed 5% of the balance of this item.

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G-SHANK ENTERPRISE CO., LTD.

5.Statement of Account Receivable - Related Parties

December 31, 2023

(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)
Name of related party	Description		Amount	Note
Account receivable GREAT-SHANK CO., LTD. G-SHANK ENTERPRISE (M) SDN. BHD. G-SHANK, INC. SHENZHEN G-BAO PRECISION SHANGHAI G-SHANK PRECISION MACHINERY CO., LTD. QINGDAO G-SHANK PRECISION SDN.BHD. G-SHANK JAPAN CO., LTD. SUNFLEX TECHNOLOGY CO., LTD Total			799 $ 782 216 141 49 26 10 3 2,026 $

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G-SHANK ENTERPRISE CO., LTD.

6. Statement of Other Receivables

December 31, 2023

(In Thousands of New Taiwan Dollars)

Items	Description		Amount	Note
Accounts receivable for interest Accounts receivable for tax refunds Others Total	VAT		23,394 $ 4,072 2,645 30,111 $

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G-SHANK ENTERPRISE CO., LTD.

7. Statement of Other Receivables - Related Parties

December 31, 2023

(In Thousands of New Taiwan Dollars)

Name of related party	Description		Amount	Note
GREAT-SHANK CO., LTD. G-SHANK, INC. G-SHANK JAPAN CO., LTD. Total			874 $ 66 10 950 $

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G-SHANK ENTERPRISE CO., LTD.

8. Statement of Inventory

December 31, 2023

(In Thousands of New Taiwan Dollars)

Items	Description	Amount	Amount	Note
		Cost	Net Realizable Value
Raw materials Supplies Work in process Finished product Merchandise Total Less: Allowance to reduce inventory to market Book amount		53,780 $ 10,624 83,381 73,393 363 221,541 (33,263) 188,278 $	55,196 $ 10,903 70,326 128,233 516 265,174 $	2. Inventories are evaluated at the lower of cost and net realizable value at the end of the period. When comparing cost and net realizable value, except for inventories of the same category , individual items are compared item by item. 1. The inventories listed on the left are not guaranteed or pledged.

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G-SHANK ENTERPRISE CO., LTD.

9. Statement of Prepayments and Other Current Assets December 31, 2023

(In Thousands of New Taiwan Dollars)

Item	Description		Amount	Note
Prepaid expenses Prepayment for purchases Others Total			5,038 $ 3,542 1,033 9,613 $

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G-SHANK ENTERPRISE CO., LTD.

10. Statement of Other Financial Assets - Current

December 31, 2023

(In Thousands of New Taiwan Dollars)

Item		Description	Description		Amount	Note
Special account for transferring overseas funds back to Taiwan Time deposit		MaturityDate 2024.12.20	Interest Rates		7,637 $	USD 248,676.43 1.2023.12.31exchange rate： 1 USD = NT 30.71 2.Time deposits with foreign currency：
			5.10%

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G-SHANK ENTERPRISE CO., LTD.

1. Statement of Changes in Fair Value of Financial Assets Measured at Fair Value through Other Comprehensive Income - Non-Current For the year ended December 31, 2023

(In Thousands of New Taiwan Dollars)

Name	Beginning of the period	Beginning of the period	Additions in Investment	Additions in Investment	Decrease in	Investment	Equity instrument investment evaluation adjustment	End of period	End of period	Accumulated Impairment Loss	Collateral	Note
	Shares	Amount	Shares	Amount	Shares	Amount		Shares	Market Value
Unlisted stocks REEL MASK INDUSTRY CO., LTD.	3,392,713	262,023 $	-	- $	-	- $	58,880 $	3,392,713	320,903 $	N/A	None

• 134 -

G-SHANK ENTERPRISE CO., LTD.

1. Statement of Changes in Investments Accounted for Using Equity Method For the year ended December 31, 2023

									(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)
Investees	Beginning	of theperiod	Additio	ns in Investment	Decre	ase in Investment	Share of the profit (loss) of associates	Exchange differences on translating foreign operations	End ofperiod			Market Value or	Net Assets Valu	e Collateral	Remark
	Shares	Amount	Shares	Amount	Shares	Amount			Shares	~~Shareholdin~~ g ~~ti~~	Amount	Unit Price (NT$)	Total Amount
Investments accounted for using equity method CHIN DE INVESTMENT CO., LTD. G-SHANK, INC. GRAND STAR ENTERPRISES L.L.C. G-SHANK ENTERPRISE (M) SDN. BHD. SHANGHAI G-SHANK PRECISION MACHINERY CO., LTD. GREAT-SHANK CO., LTD. G-SHANK JAPAN CO., LTD. SUNFLEX TECHNOLOGY CO., LTD. G-SHANK PRECISION MACHINERY (SUZHOU) CO., LTD. Total	5,000,000 1,000 - 6,924,750 - 7,968,750 1,060 9,940,956 -	52,709 $ 351,069 1,681,772 383,540 1,636,821 174,756 12,644 161,006 15,940	- - - - - - - - -	4 $ (NOTE 1) - - - - - - 3,890 (NOTE 3) - 3,894 $	- - - - - - - - -	- $ - (150,997) (NOTE 2) (42,645) (NOTE 2) - (60,288) (NOTE 2) - (6,797) (NOTE 4) (1,557) (NOTE 2) (262,284) $	1,558 $ 24,210 115,968 74,378 309,684 16,897 2,900 9,977 2,732 558,304 $	- $ (203) (30,941) (5,976) (33,515) 735 (866) - (288) (71,054) $	5,000,000 1,000 - 6,924,750 - 7,968,750 1,060 9,940,956 -	~~rao~~ 100.00% 100.00% 100.00% 92.33% 85.00% 85.00% 58.89% 14.48% 5.86%	54,271 $ 375,076 1,615,802 409,297 1,912,990 132,100 14,678 168,076 16,827	10.85 $ 375,396.00 - 59.17 - 16.59 13,847.17 29.40 -	54,271 $ N/A 375,396 N/A 1,615,978 N/A 409,734 N/A 1,912,990 N/A 132,179 N/A 14,678 N/A 292,264 N/A 16,827 N/A 4,824,317 $		Note 5 Note 5 Note 5 Note 5 Note 5 Note 5 Note 5 Note 5 Note 5
		4,470,257 $									4,699,117 $

Note 1：The fluctuation amount of unrealized losses on financial assets measured at fair value through other comprehensive income - items not reclassified to profit or loss

• attributed to subsidiary recognized using the equity method is NTD $4 thousands.

Note 2 ： Cash dividends issued by investee companies.

Note 3 ： Represents the share of other comprehensive income of associates accounted for using the equity method - items not reclassified to profit or loss - unrealized gains

on financial assets measured at fair value through other comprehensive income, amounting to NT$3,594 thousand, and the variation recognized in associates accounted for using the equity method amounting to NT$296 thousand.

Note 4 ： Represents the share of other comprehensive income of associates accounted for using the equity method - items not reclassified to profit or loss - remeasurement amount of defined benefit plans of NT$37 thousand, and cash dividends distributed by investee companies of NT$6,760 thousand.

Note 5：Calculated based on the audited financial statements of the aforementioned investee companies for the same period by the accountant.

• 135 -

G-SHANK ENTERPRISE CO., LTD. 13. Statement of Changes in Cost of Real Estate, Buildings, and Equipment For the year ended December 31, 2023

(In Thousands of New Taiwan Dollars)

For relevant information, please refer to Note 6.(9)(A) of the parent company only financial report.

G-SHANK ENTERPRISE CO., LTD.

1. Statement of Changes in Accumulated Depreciation of Real Estate, Buildings, and Equipment For the year ended December 31, 2023

(In Thousands of New Taiwan Dollars)

For relevant information, please refer to Note 6.(9)(A) of the parent company only financial report.

G-SHANK ENTERPRISE CO., LTD.

1. Statement of Changes in Intangible Assets For the year ended December 31, 2023

(In Thousands of New Taiwan Dollars)

For relevant information, please refer to Note 6.(10)(A) of the parent company only financial report.

G-SHANK ENTERPRISE CO., LTD.

16.Statement of Deferred Tax Assets December 31, 2023

(In Thousands of New Taiwan Dollars) For relevant information, please refer to Note 6.(26)(D) of the parent company only financial report.

• 136 -

G-SHANK ENTERPRISE CO., LTD.

17.Statement of Advances for Equipment, Deposits, and Other Non-Current Assets - Other December 31, 2023

(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)
Item	Description		Amount	Note
Prepayments for business facilities Refundable deposits Other noncurrent assets, others	Prepayment for the facilities that has not been Shipped to the Company Lease guarantee, etc. Details listed on important account statement 18		311,081 $ 499 $ 4,978 $

• 137 -

G-SHANK ENTERPRISE CO., LTD.

18. Statement of Changes in Other Non-Current Assets - Other

For the year ended December 31, 2023

								(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)
Items		Beginning of the period		Increase during the period		Decrease during the period		reclassification		End of the period	Note
Deferred expenses Mole expense Other Total		5,054 $ 124 5,178 $		3,547 $ - 3,547 $		(3,623) $ (124) (3,747) $		- $ - - $		4,978 $ - 4,978 $

• 138 -

G-SHANK ENTERPRISE CO., LTD.

19.Statement of Short-term Borrowings

December 31, 2023

(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)
Borrowing items	Directions	End of the period	Contract period	Interest rate	Financing available Mortgage or	Collateral	Note
Credit loan BANK SINOPAC CATHAY UNITED BANK CTBC BANK BANK OF TAIWAN FAR EASTERN INT'L BANK E. SUN COMMERCIAL BANK Total		140,000 $ 300,000 310,000 120,000 240,000 100,000 1,210,000 $	2023.12.25-2024.12.31 2023.09.02-2024.09.02 2023.10.27-2024.02.29 2023.09.01-2024.09.01 2023.11.24-2024.11.24 2023.08.28-2024.08.28	2.061% 1.653% 2.380% 1.660% 1.700% 1.640%	310,000 $ - 1,710,000 30,000 60,000 -	None None None None None None

• 139 -

G-SHANK ENTERPRISE CO., LTD.

20.Statement of Contract Liabilities - Current

December 31, 2023

(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)
Item	Description		Amount	Note
Contract liabilities			6,497 $

• 140 -

G-SHANK ENTERPRISE CO., LTD.

21. Statement of Accounts Payable

December 31, 2023

(In Thousands of New Taiwan Dollars)

Vendor Name	Description		Amount	Note
Accounts payable Vendor I Vendor J Vendor K Vendor L Vendor M Other Total	(Note)		16,189 $ 14,174 13,797 13,388 9,849 81,954 149,351 $	The notes receivable in the left column are due to operation.

Note：The balance of each customer does not exceed 5% of the balance of this item

• 141 -

G-SHANK ENTERPRISE CO., LTD.

22.Statement Of Accounts Payable- Related Parties, Net December 31, 2023

(In Thousands of New Taiwan Dollars)

Name of related party	Description		Amount	Note
Accounts payable SUNFLEX TECHNOLOGY CO., LTD. G-SHANK PRECISION MACHINERY (SUZHOU) CO., LTD. KUAI LUNG PRECISION INDUSTRY CO., LTD. SHANGHAI G-SHANK PRECISION MACHINERY CO., LTD. TIANJIN G-SHANK PRECISION MACHINERY CO., LTD. Total			1,082 $ 618 195 133 13 2,041 $

• 142 -

G-SHANK ENTERPRISE CO., LTD.

23. Statement of Other Payables

December 31, 2023

(In Thousands of New Taiwan Dollars)

Item	Description		Amount	Note
Salaries and Bonuses Payable Processing Fees Payable Employee Compensation Payable Equipment Payments Payable Insurance Premiums Payable Retirement Benefits Payable Other Total			103,525 $ 66,376 23,000 10,355 8,718 4,856 58,230 275,060 $

• 143 -

G-SHANK ENTERPRISE CO., LTD.

24. Statement of Other Payables - Related Parties

December 31, 2023

(In Thousands of New Taiwan Dollars)

Name of related party	Description		Amount	Note
SUNFLEX TECHNOLOGY CO., LTD. G-SHANK JAPAN CO., LTD. SHENZHEN G-BAO PRECISION SDN.BHD. SHENZHEN G-SHANK PRECISION SDN.BHD. SHANGHAI G-SHANK PRECISION MACHINERY CO., LTD. QINGDAO G-SHANK PRECISION SDN.BHD. Total			2,574 $ 70 30 19 9 4 2,706 $

• 144 -

G-SHANK ENTERPRISE CO., LTD.

25. Statement of Income Tax Liabilities -Current

December 31, 2023

			(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)
Items	Summary		Amount	Note
Income tax liabilities -current	Corporate Income Tax		13,166 $

• 145 -

G-SHANK ENTERPRISE CO., LTD.

26. Statement of Other Current Liabilities

December 31, 2023

			(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)
Items	Summary		Amount	Note
Temporary credits Receipts under custody Total			2,988 $ 3,801 6,789 $

• 146 -

G-SHANK ENTERPRISE CO., LTD. 27. Statement of Deferred Tax Liabilities December 31, 2023

(In Thousands of New Taiwan Dollars)

For relevant information, please refer to Note 6.(26)(D) of the parent company only financial report.

29. Statement of Net Defined Benefit Liabilities - Noncurrent December 31, 2023

(In Thousands of New Taiwan Dollars) For relevant information, please refer to Note 6.(13)(A)(c) of the parent company only financial report.

• 147 -

G-SHANK ENTERPRISE CO., LTD.

29. Statement of Deposits Received

December 31, 2023

(In Thousands of New Taiwan Dollars)

Items	Summary		Amount	Note
Guarantee deposits received	Lease Deposits and Others		3,061 $

• 148 -

G-SHANK ENTERPRISE CO., LTD.

30. Statement of Net Operating Revenues

For the year ended December 31, 2023

(In Thousands of New Taiwan Dollars)

Items	Summary		Amount	Note
Total Operating Revenue Sales revenue Parts Mold Tools Product Total Less: Sales returns Sales discounts and allowances Net sales revenue	2,493,263 KPCS 154 sets 21,576 units 69,215 KPCS		1,763,152 $ 78,380 47,847 68,501 1,957,880 (9,169) (5,890) 1,942,821 $

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G-SHANK ENTERPRISE CO., LTD.

31.Statement of Operating Costs

For the year ended December 31, 2023

(In Thousands of New Taiwan Dollars)

		(In Thousands of	New Taiwan Dollars)
Items	Summary	Amount	Note
Self-production： Direct raw material Beginning inventory Add：Current net material purchased Work-in-process cover into Other cover into Inventory surplus Less：Ending inventory Reclassified product Rendering work-in-process Current period consumption Direct labor Manufacturing overhead Manufacturing cost Add：Beginning work-in-process Goods Transfer In Raw material transfer in Work-in-process transfer in Less：Ending work-in-process Reclassify raw materials Reclassify expenses Cost of finished goods Add：Beginning finished goods Current net material purchased Inventory surplus or deficit Less：Ending finished goods Reclassify assets Reclassify work-in-process Reclassify expenses Cost of goods sold (Self-production) Buying and selling: Beginning inventory Add：Current net material purchased Raw material transfer in Expenses transfer in Less：Ending finished goods Reclassify work-in-process Inventory shrinkage Cost of goods sold (Buying and selling) Other operating cost: Inventory surplus Inventory cost write-down to net realizable value Total operation cost		70,773 $ 505,193 120,713 3,178 3,701 (53,780) (10,677) (1,510) 637,591 265,571 712,937 1,616,099 104,132 35 1,510 331,331 (83,381) (120,713) (3,606) 1,845,407 99,640 2,641 4,898 (73,393) (4,936) (331,331) (6,200) 1,536,726 3,713 39,275 10,677 112 (363) (35) (1) 53,378 (8,598) 2,336 1,583,842 $

• 150 -

G-SHANK ENTERPRISE CO., LTD.

32. Statement of Manufacturing Expenses

For the year ended December 31, 2023

(In Thousands of New Taiwan Dollars)

Items	Summary		Amount	Note
Wages and salaries Rent expense Repairs and maintenance expense Packing expenses Utilities expense Insurance expense Processing expense Depreciations Depletions and amortizations Meal expense Indirect materials Consumables Ole mold parts expenses Other expenses Total			105,512 $ 1,375 13,592 25,849 21,334 35,131 291,742 56,598 3,747 8,414 95,928 26,869 9,296 17,550 712,937 $

• 151 -

G-SHANK ENTERPRISE CO., LTD.

33.Statement of Selling and Marketing Expenses

For the year ended December 31, 2023

(In Thousands of New Taiwan Dollars)

Items	Summary		Amount	Note
Wages and salaries Traveling Expense Freight Utilities expense Insurance expense Entertainment expenses Depreciations Various amortization Export expenses Packing expenses Services expense Other expenses Total			54,718 $ 4,067 3,496 3,837 5,836 2,153 1,773 22 6,741 1,562 3,782 8,859 96,846 $

• 152 -

G-SHANK ENTERPRISE CO., LTD.

34.Statement of General and Administrative Expenses

For the year ended December 31, 2023

(In Thousands of New Taiwan Dollars)

			(In Thousands of	New Taiwan Dollars)
Items	Summary		Amount	Note
Wages and salaries Traveling Expense Repairs and maintenance expense Utilities expense Insurance expense Taxes Depreciations Various amortization Employee benefits/welfare Training expense Miscellaneous purchases Environmental maintenance fee Services expense Consumables Other expenses Total			110,464 $ 1,112 3,232 5,587 9,399 4,119 5,944 443 3,071 2,779 1,189 2,369 2,923 1,341 12,351 166,323 $

• 153 -

G-SHANK ENTERPRISE CO., LTD.

35. Statement of Research and Development Expenses

For the year ended December 31, 2023

(In Thousands of New Taiwan Dollars)

Items	Summary		Amount	Note
Wages and salaries Utilities expense Insurance expense Depreciations Various amortization Consumables Services expense Other expenses Total			36,999 $ 3,046 3,158 1,559 280 764 1,812 2,979 50,597 $

• 154 -

G-SHANK ENTERPRISE CO., LTD.

36.Statement of Loss (reversal) of expected credit loss For the year ended December 31, 2023

For relevant information, please refer to Note 6.(4) of the parent company only financial report.

G-SHANK ENTERPRISE CO., LTD. 37.Statement of Other Operating Income and Expenses, Net For the year ended December 31, 2023

For relevant information, please refer to Note 6.(23) of the parent company only financial report.

G-SHANK ENTERPRISE CO., LTD.

38.Statement of Non-operating Income and Expenses For the year ended December 31, 2023

For relevant information, please refer to Note 6.(24) of the parent company only financial report.

G-SHANK ENTERPRISE CO., LTD.

39.Statement of Employee Benefits, Depreciation, and Amortization Expenses Incurred in the Current Period by Functional Categories

For the year ended December 31, 2023

For relevant information, please refer to Note 6.(22) of the parent company only financial report.

• 155 -