HannsTouch - Audit Report / Information 2023

HANNSTOUCH HOLDINGS COMPANY (FORMERLY HANNSTOUCH SOLUTION INCORPORATED) AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND

INDEPENDENT AUDITORS’ REPORT DECEMBER 31, 2023 AND 2022

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

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INDEPENDENT AUDITORS’ REPORT TRANSLATED FROM CHINESE

To the Board of Directors and Shareholders of HannsTouch Holdings Company

Opinion

We have audited the accompanying consolidated balance sheets as of HannsTouch Holdings Company (formerly known as HannsTouch Solution Incorporated) and subsidiaries (the “Group”) as at December 31, 2023 and 2022, and the related consolidated statements of comprehensive income, of changes in equity and of cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of material accounting policies.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at December 31, 2023 and 2022, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations that came into effect as endorsed by the Financial Supervisory Commission.

Basis for opinion

We conducted our audits in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors’ responsibilities for the audit of the consolidated financial statements section of our report. We are independent of the Group in accordance with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Group’s 2023 consolidated financial statements. These matters were addressed in the context of our audit of the consolidated financial statements as a whole and, in forming our opinion thereon, we do not provide a separate opinion on these matters.

~2~

Key audit matters for the Group’s 2023 consolidated financial statements are stated as follows:

Key audit matters - Impairment assessment on property, plant and equipment

Description

Refer to Notes 4(15), 5(2) and 6(8) for accounting policy applied on impairment of property, plant and equipment, accounting estimates and assumptions applied on the impairment assessment of tangible assets and details of impairment.

The Group has appointed appraisers to appraise the property, plant and equipment in Taipei and to determine the recoverable amount as the basis for assessing the impairment of property, plant and equipment.

The recoverable amount is calculated through income approach and market method. The determination of the recoverable amount is subject to management judgement and involves uncertainty, which could have a significant impact in assessing whether there is any impairment indicator that existed as at year end. Thus, we considered the impairment assessment of property, plant and equipment as a key audit matter.

How our audit addressed the matter:

We understood the basis and process of management’s assessment and performed the following audit procedures in respect of the above key audit matter:

Assessed the appointed appraisers and appraisals firms in conformity with the rules of qualification and independence.
Assessed the expected future income used in the experts’ appraisal report and compared with local market price and forecast documents for the industry.
Assessed the discount rate used in the experts’ appraisal report and inspected the assumptions of cost of capital with return on similar assets in the market.
Examined the parameters of valuation model in the experts’ appraisal report and setting of formulas.

Other matter – Parent company only financial reports

We have audited and expressed an unqualified opinion on the parent company only financial statements of HannsTouch Holdings Company as at and for the years ended December 31, 2023 and 2022.

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Responsibilities of management and those charged with governance for the consolidated financial statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations that came into effect as endorsed by the Financial Supervisory Commission, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

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

Those charged with governance, including the audit committee, are responsible for overseeing the Group’s financial reporting process.

Auditors’ responsibilities for the audit of the consolidated financial statements

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

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

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

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Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

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

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

~5~

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

Chen, Ching Chang[Liao, Fu-Ming ] For and on Behalf of PricewaterhouseCoopers, Taiwan February 27, 2024

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

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

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HANNSTOUCH HOLDINGS COMPANY

(FORMERLY HANNSTOUCH SOLUTION INCORPORATED) AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

DECEMBER 31, 2023 AND 2022

(Expressed in thousands of New Taiwan dollars)

Assets	December 31, 2023 AMOUNT % `$` `1,831,199` `13` `297,953` `2` `337,438` `3` `124,264` `1` `760` `-` `12,576` `-` `143` `-` `131,205` `1` `46,637` `-` `46,983` `-` `2,829,158` `20` `219,290` `2` `590,367` `4` `137,461` `1` `9,719,302` `69` `410,858` `3` `19,294` `-` `87,639` `1` `12,881` `-` `11,197,092` `80` `$` `14,026,250` `100`	December 31, 2022	December 31, 2022
	AMOUNT `$` `1,831,199` `297,953` `337,438` `124,264` `760` `12,576` `143` `131,205` `46,637` `46,983` `2,829,158` `219,290` `590,367` `137,461` `9,719,302` `410,858` `19,294` `87,639` `12,881` `11,197,092` `$` `14,026,250`	AMOUNT `$` `1,814,501` `141,401` `781,000` `292,954` `117` `15,615` `-` `172,132` `45,031` `31,204` `3,293,955` `177,958` `553,821` `136,934` `10,281,968` `445,986` `23,416` `111,351` `11,590` `11,743,024` `$` `15,036,979`	%
Current assets 1100 Cash and cash equivalents 1110 Financial assets at fair value through profit or loss - current 1136 Current financial assets at amortised cost, net 1170 Accounts receivable, net 1180 Accounts receivable - related parties 1200 Other receivables 1210 Other receivables - related parties 130X Inventory 1476 Other current financial assets 1479 Other current assets 11XX Total current assets Non-current assets 1510 Non-current financial assets at fair value through profit or loss 1517 Non-current financial assets at fair value through other comprehensive income 1535 Non-current financial assets at amortised cost 1600 Property, plant and equipment 1755 Right-of-use assets 1780 Intangible assets 1840 Deferred income tax assets 1900 Other non-current assets 15XX Total non-current assets 1XXX Total assets			`12` `1` `5` `2` `-` `-` `-` `1` `1` `-`
			`22`
			`1` `4` `1` `68` `3` `-` `1` `-`
			`78`
			`100`

(Continued)

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HANNSTOUCH HOLDINGS COMPANY

(FORMERLY HANNSTOUCH SOLUTION INCORPORATED) AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

DECEMBER 31, 2023 AND 2022

(Expressed in thousands of New Taiwan dollars)

Liabilities and Equity December 31, 2023
December 31, 2022
Notes
AMOUNT
%
AMOUNT
%
$
424
- $
502
-
67,143
1
141,369
1
7
5,011
-
13,058
-
6(11)
301,793
2
361,641
3
7
23
-
40
-
191
-
103
-
30,044
-
30,009
-
6(13)
372,010
3
172,754
1
13,402
-
6,652
-
790,041
6
726,128
5
6(12)
1,500,000
11
1,500,000
10
6(13)
1,884,419
13
1,977,789
13
1,131
-
-
-
402,214
3
433,151
3
18,693
-
18,693
-
3,806,457
27
3,929,633
26
4,596,498
33
4,655,761
31
6(16)
8,020,105
57
8,069,485
54
6(17)
313,740
2
312,925
2
6(18)
246,879
2
244,402
2
90,461
1
-
-
256,054
2
1,248,767
8
(
56,519) (
1 ) (
90,461 ) (
1)
6(16)
-
- (
18,264 )
-
8,870,720
63
9,766,854
65
4(3)
559,032
4
614,364
4
9,429,752
67
10,381,218
69
9
11
$
14,026,250
100 $
15,036,979
100

Current liabilities
2150
Notes payable
2170
Accounts payable
2180
Accounts payable - related parties
2200
Other payables
2220
Other payables - related parties
2230
Current income tax liabilities
2280
Current lease liabilities
2320
Long-term liabilities, current portion
2399
Other current liabilities
21XX
Total current liabilities
Non-current liabilities
2530
Corporate bonds payable
2540
Long-term borrowings
2570
Deferred income tax liabilities
2580
Non-current lease liabilities
2670
Other non-current liabilities
25XX
Total non-current liabilities
2XXX
Total liabilities
Equity
Equity attributable to owners of
parent
Share capital
3110
Common stock
Capital surplus
3200
Capital surplus
Retained earnings
3310
Legal reserve
3320
Special reserve
3350
Unappropriated retained earnings
Other equity interest
3400
Other equity interest
3500
Treasury stock
31XX
Equity attributable to owners of
the parent
36XX
Non-controlling interest
3XXX
Total equity
Significant contingent liabilities and
unrecognised contract commitments
Significant events after the balance
sheet date
3X2X
Total liabilities and equity

Liabilities and Equity	December 31, 2023 December 31, 2022 Notes AMOUNT % AMOUNT % `$` `424` `- $` `502` `-` `67,143` `1` `141,369` `1` 7 `5,011` `-` `13,058` `-` 6(11) `301,793` `2` `361,641` `3` 7 `23` `-` `40` `-` `191` `-` `103` `-` `30,044` `-` `30,009` `-` 6(13) `372,010` `3` `172,754` `1` `13,402` `-` `6,652` `-` `790,041` `6` `726,128` `5` 6(12) `1,500,000` `11` `1,500,000` `10` 6(13) `1,884,419` `13` `1,977,789` `13` `1,131` `-` `-` `-` `402,214` `3` `433,151` `3` `18,693` `-` `18,693` `-` `3,806,457` `27` `3,929,633` `26` `4,596,498` `33` `4,655,761` `31` 6(16) `8,020,105` `57` `8,069,485` `54` 6(17) `313,740` `2` `312,925` `2` 6(18) `246,879` `2` `244,402` `2` `90,461` `1` `-` `-` `256,054` `2` `1,248,767` `8` `(` `56,519) (` `1 ) (` `90,461 ) (` `1)` 6(16) `-` `- (` `18,264 )` `-` `8,870,720` `63` `9,766,854` `65` 4(3) `559,032` `4` `614,364` `4` `9,429,752` `67` `10,381,218` `69` 9 11 `$` `14,026,250` `100 $` `15,036,979` `100`
Current liabilities 2150 Notes payable 2170 Accounts payable 2180 Accounts payable - related parties 2200 Other payables 2220 Other payables - related parties 2230 Current income tax liabilities 2280 Current lease liabilities 2320 Long-term liabilities, current portion 2399 Other current liabilities 21XX Total current liabilities Non-current liabilities 2530 Corporate bonds payable 2540 Long-term borrowings 2570 Deferred income tax liabilities 2580 Non-current lease liabilities 2670 Other non-current liabilities 25XX Total non-current liabilities 2XXX Total liabilities Equity Equity attributable to owners of parent Share capital 3110 Common stock Capital surplus 3200 Capital surplus Retained earnings 3310 Legal reserve 3320 Special reserve 3350 Unappropriated retained earnings Other equity interest 3400 Other equity interest 3500 Treasury stock 31XX Equity attributable to owners of the parent 36XX Non-controlling interest 3XXX Total equity Significant contingent liabilities and unrecognised contract commitments Significant events after the balance sheet date 3X2X Total liabilities and equity

The accompanying notes are an integral part of these consolidated financial statements.

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HANNSTOUCH HOLDINGS COMPANY

(FORMERLY HANNSTOUCH SOLUTION INCORPORATED) AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME YEARS ENDED DECEMBER 31, 2023 AND 2022

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

Items Year ended December 31
2023
2022
Notes
AMOUNT
%
AMOUNT
%
6(19) and 7
$
1,331,826
100
$
2,405,963
100
6(6)(23) and 7
(
2,151,502) (
162) (
2,272,770) (
94)
(
819,676) (
62)
133,193
6
6(23) and 7
(
42,631) (
3) (
30,223) (
1)
(
175,474) (
13) (
166,959) (
7)
(
27,916) (
2) (
32,765) (
2)
12(2)
57
-
10
-
(
245,964) (
18) (
229,937) (
10)
(
1,065,640) (
80) (
96,744) (
4)
6(20)
32,905
3
16,808
-
6(21)
44,144
3
124,737
5
6(22)
103,129
8
20,290
1
(
62,104) (
5) (
50,853) (
2)
118,074
9
110,982
4
(
947,566) (
71)
14,238
-
6(24)
(
3,601)
-
15,027
1
($
951,167) (
71) $
29,265
1
6(3)
$
34,754
2 ($
308,237) (
13)
(
812)
-
20
-
$
33,942
2 ($
308,217) (
13)
($
917,225) (
69) ($
278,952) (
12)
($
899,775) (
67) $
24,772
1
4(3)
($
51,392) (
4) $
4,493
-
($
865,833) (
65) ($
283,445) (
12)
4(3)
($
51,392) (
4) $
4,493
-
6(25)
($
1.12) $
0.03
($
1.12) $
0.03

4000
Sales revenue
5000
Operating costs
5950
Gross (loss) profit from operations
Operating expenses
6100
Selling expenses
6200
General and administrative expenses
6300
Research and development expenses
6450
Impairment gain and reversal of
impairment determined in
accordance with IFRS 9
6000
Total operating expenses
6900
Operating loss
Non-operating income and expenses
7100
Interest income
7010
Other income
7020
Other gains and losses
7050
Finance costs
7000
Total non-operating income and
expenses
7900
(Loss) profit before income tax
7950
Income tax (expense) benefit
8200
(Loss) profit for the year
Components of other comprehensive
income that will not be reclassified to
profit or loss
8316
Unrealised gains (losses) from
investments in equity instruments
measured at fair value through other
comprehensive income
Components of other comprehensive
income that will be reclassified to
profit or loss
8361
Financial statements translation
differences of foreign operations
8300
Other comprehensive income (loss)
for the year
8500
Total comprehensive loss for the year
(Loss) profit attributable to:
8610
Owners of the parent
8620
Non-controlling interest
Comprehensive (loss) income
attributable to:
8710
Owners of the parent
8720
Non-controlling interest
(Loss) earnings per share (in dollars)
9750
Basic (loss) earnings per share
9850
Diluted (loss) earnings per share

Items	Year ended December 31 2023 2022 Notes AMOUNT % AMOUNT % 6(19) and 7 `$` `1,331,826` `100` `$` `2,405,963` `100` 6(6)(23) and 7 `(` `2,151,502) (` `162) (` `2,272,770) (` `94)` `(` `819,676) (` `62)` `133,193` `6` 6(23) and 7 `(` `42,631) (` `3) (` `30,223) (` `1)` `(` `175,474) (` `13) (` `166,959) (` `7)` `(` `27,916) (` `2) (` `32,765) (` `2)` 12(2) `57` `-` `10` `-` `(` `245,964) (` `18) (` `229,937) (` `10)` `(` `1,065,640) (` `80) (` `96,744) (` `4)` 6(20) `32,905` `3` `16,808` `-` 6(21) `44,144` `3` `124,737` `5` 6(22) `103,129` `8` `20,290` `1` `(` `62,104) (` `5) (` `50,853) (` `2)` `118,074` `9` `110,982` `4` `(` `947,566) (` `71)` `14,238` `-` 6(24) `(` `3,601)` `-` `15,027` `1` `($` `951,167) (` `71) $` `29,265` `1` 6(3) `$` `34,754` `2 ($` `308,237) (` `13)` `(` `812)` `-` `20` `-` `$` `33,942` `2 ($` `308,217) (` `13)` `($` `917,225) (` `69) ($` `278,952) (` `12)` `($` `899,775) (` `67) $` `24,772` `1` 4(3) `($` `51,392) (` `4) $` `4,493` `-` `($` `865,833) (` `65) ($` `283,445) (` `12)` 4(3) `($` `51,392) (` `4) $` `4,493` `-` 6(25) `($` `1.12) $` `0.03` `($` `1.12) $` `0.03`
4000 Sales revenue 5000 Operating costs 5950 Gross (loss) profit from operations Operating expenses 6100 Selling expenses 6200 General and administrative expenses 6300 Research and development expenses 6450 Impairment gain and reversal of impairment determined in accordance with IFRS 9 6000 Total operating expenses 6900 Operating loss Non-operating income and expenses 7100 Interest income 7010 Other income 7020 Other gains and losses 7050 Finance costs 7000 Total non-operating income and expenses 7900 (Loss) profit before income tax 7950 Income tax (expense) benefit 8200 (Loss) profit for the year Components of other comprehensive income that will not be reclassified to profit or loss 8316 Unrealised gains (losses) from investments in equity instruments measured at fair value through other comprehensive income Components of other comprehensive income that will be reclassified to profit or loss 8361 Financial statements translation differences of foreign operations 8300 Other comprehensive income (loss) for the year 8500 Total comprehensive loss for the year (Loss) profit attributable to: 8610 Owners of the parent 8620 Non-controlling interest Comprehensive (loss) income attributable to: 8710 Owners of the parent 8720 Non-controlling interest (Loss) earnings per share (in dollars) 9750 Basic (loss) earnings per share 9850 Diluted (loss) earnings per share

The accompanying notes are an integral part of these consolidated financial statements.

~9~

HANNSTOUCH HOLDINGS COMPANY

(FORMERLY HANNSTOUCH SOLUTION INCORPORATED) AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY YEARS ENDED DECEMBER 31, 2023 AND 2022

(Expressed in thousands of New Taiwan dollars)

				Equityattr	butable to owners of	theparent				Total equity
Common stock		Capital Reserves	Capital surplus others		Retained Earnings	Unappropriated retained earnings	Other EquityInterest Exchange differences on translation of foreign financial statements Unrealised gains (losses) from financial assets measured at fair value through other comprehensive income `$` `-` `$` `217,756` `-` `-` `20` `(` `308,237)` `20` `(` `308,237)` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `$` `20` `(` `$` `90,481)` `$` `20` `(` `$` `90,481)` `-` `-` `(` `812)` `34,754` `(` `812)` `34,754` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `($` `792) (` `$` `55,727)`	Treasurystock	Total
	Total capital surplus, additional paid-in capital	Capital surplus, difference between consideration and carrying amount of subsidiaries acquired or disposed `$` `919` `-` `-` `-` `-` `-` `-` `-` `-` `$` `919` `$` `919` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `$` `919`		Legal reserve	Special reserve `$` `6,457` `-` `-` `-` `-` `(` `6,457)` `-` `-` `-` `$` `-` `$` `-` `-` `-` `-` `-` `90,461` `-` `-` `-` `-` `-` `$` `90,461`		Exchange differences on translation of foreign financial statements
`$ 8,069,485` `-` `-` `-` `-` `-` `-` `-` `-` `$ 8,069,485` `$ 8,069,485` `-` `-` `-` `-` `-` `-` `-` `-` `-` `(` `49,380` `)` `$ 8,020,105`	`$` `309,035` `-` `-` `-` `-` `-` `-` `-` `-` `$` `309,035` `$` `309,035` `-` `-` `-` `-` `-` `-` `-` `-` `-` `(` `1,891)` `$` `307,144`		`$` `2,971` `-` `-` `-` `-` `-` `-` `-` `-` `$` `2,971` `$` `2,971` `-` `-` `-` `-` `-` `-` `-` `207` `(` `1)` `2,500` `$` `5,677`	`$` `144,361` `-` `-` `-` `100,041` `-` `-` `-` `-` `$` `244,402` `$` `244,402` `-` `-` `-` `2,477` `-` `-` `-` `-` `-` `-` `$` `246,879`		`$ 1,600,011` `24,772` `-` `24,772` `(` `100,041)` `6,457` `(` `282,432)` `-` `-` `$ 1,248,767` `$ 1,248,767` `(` `899,775)` `-` `(` `899,775)` `(` `2,477)` `(` `90,461)` `-` `-` `-` `-` `-` `$` `256,054`	`$` `-` `-` `20` `20` `-` `-` `-` `-` `-` `$` `20` `$` `20` `-` `(` `812)` `(` `812)` `-` `-` `-` `-` `-` `-` `-` `($` `792)`	`$` `-` `-` `-` `-` `-` `-` `-` `-` `(` `18,264)` `($` `18,264)` `($` `18,264)` `-` `-` `-` `-` `-` `-` `(` `37,738)` `-` `7,231` `48,771` `$` `-`	`$ 10,350,995` `24,772` `(` `308,217)` `(` `283,445)` `-` `-` `(` `282,432)` `-` `(` `18,264)` `$ 9,766,854` `$ 9,766,854` `(` `899,775)` `33,942` `(` `865,833)` `-` `-` `-` `(` `37,738)` `207` `7,230` `-` `$ 8,870,720`	`$ 10,947,936` `29,265` `(` `308,217)` `(` `278,952)` `-` `-` `(` `282,432)` `12,930` `(` `18,264)` `$ 10,381,218` `$ 10,381,218` `(` `951,167)` `33,942` `(` `917,225)` `-` `-` `(` `3,940)` `(` `37,738)` `207` `7,230` `-` `$ 9,429,752`

The accompanying notes are an integral part of these consolidated financial statements.

~10~

HANNSTOUCH HOLDINGS COMPANY

(FORMERLY HANNSTOUCH SOLUTION INCORPORATED) AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2023 AND 2022

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM OPERATING ACTIVITIES
(Loss) profit before tax
Adjustments
Adjustments to reconcile profit (loss)
Expected credit gain on doubtful accounts

Depreciation

Amortisation

Interest expense
Share-based payments cost

Interest income

Loss on lease modification

Dividend income

(Gain) loss on disposals of property, plant and
equipment

(Gain) loss on financial assets at fair value
through profit or loss

Changes in operating assets and liabilities
Changes in operating assets
Financial assets at fair value through profit or
loss - current
Accounts receivable
Accounts receivable - related parties
Other receivables
Other receivables - related parties
Inventory
Other current assets
Changes in operating liabilities
Notes payable
Accounts payable
Accounts payable - related parties
Other payables
Other payables - related parties
Other current liabilities
Other non-current liabilities
Cash (outflow) inflow generated from operations
Interest received
Dividends received
Interest paid
Income taxes refund received (paid)
Net cash flows (used in) from operating activities Year ended December 31
Notes
2023
2022
($
947,566 ) $
14,238
12(2)
(
57 ) (
10 )
6(23)
958,501
881,677
6(23)
10,533
11,400
62,104
50,853
6(15)
229
-
6(20)
(
32,905 ) (
16,808 )
6(9)(22)
76
-
6(21)
(
9,242 ) (
52,972 )
6(22)
(
1,970 )
1,681
6(2)(22)
(
99,582 )
17,831
(
88,302 ) (
94,384 )
168,747
35,381
(
643 )
67
7,021 (
4,482 )
(
143 )
1,074
40,927
32,320
(
14,194 ) (
4,429 )
(
78 ) (
1,201 )
(
74,226 ) (
18,621 )
(
8,047 )
13,058
(
15,509 ) (
55,622 )
(
17 ) (
1,154 )
6,750 (
34,979 )
-
2,364
(
37,593 )
777,282
32,487
16,010
9,242
52,972
(
52,741 ) (
43,253 )
16,181 (
25,515 )
(
32,424 )
777,496

(Continued)

~11~

HANNSTOUCH HOLDINGS COMPANY

(FORMERLY HANNSTOUCH SOLUTION INCORPORATED) AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2023 AND 2022

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of non-current financial assets at fair
value through profit or loss
Increase in financial assets at fair value through
other comprehensive income
Decrease in current financial assets at amortised
cost
Increase in non-current financial assets at amortised
cost
Acquisition of property, plant and equipment

Proceeds from disposal of property, plant and
equipment
Acquisition of intangible assets
Increase in other non-current assets
Increase in other current financial assets
Net cash flows from investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from long-term debt

Repayment of long-term debt

Repayment of lease liabilities

Payments to acquire treasury shares

(Decrease) increase in non-controlling interests

Treasury shares sold to employees
Cash dividends paid

Net cash flows from (used in) financing activities
Effect of exchange rate changes on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year

Cash and cash equivalents at end of year Year ended December 31
Notes
2023
2022
($
10,000 ) ($
75,598 )
(
1,792 ) (
83,921 )
443,562
1,474,907
(
527 ) (
136,934 )
6(26)
(
415,801 ) (
574,285 )
11,415
-
(
5,930 ) (
17,935 )
(
1,683 ) (
8,640 )
(
1,606 ) (
74 )
17,638
577,520
6(27)
281,140
-
6(27)
(
175,254 ) (
1,072,754 )
6(27)
(
39,120 ) (
23,668 )
6(16)
(
37,738 ) (
18,264 )
4(3) and 6(28)
(
3,940 )
12,930
7,208
-
6(18)
- (
282,432 )

32,296 (
1,384,188 )
(
812 )
20
16,698 (
29,152 )
6(1)
1,814,501
1,843,653
6(1)
$
1,831,199 $
1,814,501

The accompanying notes are an integral part of these consolidated financial statements.

~12~

HANNSTOUCH HOLDINGS COMPANY AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED DECEMBER 31, 2023 AND 2022

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

1. History and Organisation

The Company (formerly known as HannsTouch Solution Incorporated) was incorporated in September 1999 as a company limited by shares under the provisions of the Company Act of the Republic of China (R.O.C.). On June 12, 2023, the Ministry of Economic Affairs approved the change of company name to HannsTouch Holdings Company (the ‘Company’). The Company and its subsidiaries (collectively referred herein as the “Group”) are primarily engaged in the manufacture and sales of touch products, lease of property and hotel business. The common shares of the Company have been listed on the Taiwan Stock Exchange since September 27, 2002.

The Date of Authorisation for Issuance of the Financial Statements and Procedures for Authorisation

These financial statements were authorised for issuance by the Board of Directors on February 27, 2024.

3. Application of New Standards, Amendments and Interpretations

(1) Effect of the adoption of new issuances of or amendments to International Financial Reporting Standards (“IFRS[®] ”) Accounting Standards that came into effect as endorsed by the Financial Supervisory Commission (“FSC”)

New standards, interpretations and amendments endorsed by the FSC and became effective from 2023 are as follows:

Supervisory Commission (“FSC”) New standards, interpretations and amendments endorsed by the FSC 2023 are as follows:	and became effective fr
	Effective date by
	International
	Accounting
New Standards,InterpretationsandAmendments	StandardsBoard
Amendments to IAS 1, ‘Disclosure of accounting policies’	January 1, 2023
Amendments to IAS 8, ‘Definition of accounting estimates’	January 1, 2023
Amendments to IAS 12, ‘Deferred tax related to assets and liabilities	January 1, 2023
arising from a single transaction’
Amendments to IAS 12, ‘International tax reform - pillar two model	May 23, 2023
rules’

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

~13~

(2) Effect of new issuances of or amendments to IFRS Accounting Standards as endorsed by the FSC

but not yet adopted by the Group

New standards, interpretations and amendments endorsed by the FSC and will become effective from 2024 are as follows:

New Standards,InterpretationsandAmendments	Effective date by International Accounting StandardsBoard
Amendments to IFRS 16, ‘Lease liability in a sale and leaseback’ Amendments to IAS 1, ‘Classification of liabilities as current or non-current’ Amendments to IAS 1, ‘Non-current liabilities with covenants’ Amendments to IAS 7 and IFRS 7, ‘Supplier finance arrangements’	January 1, 2024 January 1, 2024 January 1, 2024 January 1, 2024

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

(3) IFRS Accounting Standards issued by IASB but not yet endorsed by the FSC

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

	Effective date by
	International Accounting
New Standards,InterpretationsandAmendments	StandardsBoard
Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets	To be determined by
between an investor and its associate or joint venture’	International Accounting
	Standards Board
IFRS 17, ‘Insurance contracts’	January 1, 2023
Amendments to IFRS 17, ‘Insurance contracts’	January 1, 2023
Amendment to IFRS 17, ‘Initial application of IFRS 17 and IFRS 9 -	January 1, 2023
comparative information’
Amendments to IAS 21, ‘Lack of exchangeability’	January 1, 2025

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

4. Summary of Material Accounting Policies

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

~14~

(1) Compliance statement

The consolidated financial statements of the Group have been prepared in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers”, International Financial Reporting Standards, International Accounting Standards, IFRIC[®] Interpretations, and SIC[®] Interpretations came into effect as endorsed by the FSC (collectively referred herein as the “IFRSs”).

(2) Basis of preparation

A. Except for the following items, the consolidated financial statements have been prepared under the historical cost convention:
(a) Financial assets (including derivative instruments) at fair value through profit or loss.
(b) Financial assets at fair value through other comprehensive income.
B. The preparation of financial statements in conformity with IFRSs requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the group classified’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the financial Consolidated statements are disclosed in Note 5.

(3) Basis of consolidation

A. Basis for preparation of consolidated financial statements:
(a) All subsidiaries are included in the Group’s consolidated financial statements. Subsidiaries are all entities (including structured entities) controlled by the Group. The Group controls an entity when the Group is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Consolidation of subsidiaries begins from the date the Group obtains control of the subsidiaries and ceases when the Group loses control of the subsidiaries.
(b) Inter-company transactions, balances and unrealised gains or losses are eliminated. Accounting policies of subsidiaries have been adjusted where necessary to ensure consistency with the policies adopted by the Group.
(c) Profit or loss and each component of other comprehensive income are attributed to the owners of the parent and to the non-controlling interests. Total comprehensive income is attributed to the owners of the parent and to the non-controlling interests even if this results in the noncontrolling interests having a deficit balance.
(d) Changes in a parent’s ownership interest in a subsidiary that do not result in the parent losing control of the subsidiary (transactions with non-controlling interests) are accounted for as equity transactions, i.e. transactions with owners in their capacity as owners. Difference of adjustment of non-controlling interest and fair value of consideration paid or received is recognised in equity.

~15~

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

Investor	Name ofsubsidiary	Main business activities	December 31, December 31, 2023 2022 Description 100.00 100.00 - 100.00 100.00 - 42.31 42.31 - 100.00 100.00 - 100.00 100.00 - - 51.00 Note 3 51.00 51.00 Note 1 Note 2 86.00 - Note 4 30.00 30.00 Note 1 Note 2 100.00 100.00 Note 5 Ownership (%)
The Company The Company The Company The Company The Company GloryStone GloryStone Pottery Yin Wang Investment Hanns Blegrain	Richest Investment Ltd. Golden Apple Investment Corporation (Golden Apple) GloryStone Inc. (GloryStone) Yinwang Investment Co., Ltd. (Yinwang Investment) Hanns Blegrain Ltd. (Hanns Blegrain) Flying horse on Maryland Inc. (Flying horse on Maryland) Pottery Inc. (formerly known as Han Yu Chu Co., Ltd. (Han Yu Chu)) Flying horse on Maryland Inc. (Flying horse on Maryland) Pottery Inc. (formerly known as Han Yu Chu Co., Ltd. (Han Yu Chu)) Guangdong Shekel Technology Co., Ltd. (Shekel) (formerly known as HeXin Shang Mao Technology Service (Shenzen) Ltd. (HeXin Shang Mao))	Investment Investment Hotel business Investment Investment Food service Food service Food service Food service Provision of technical services

Note 1: GloryStone, Yinwang Investment and the Group’s associate jointly established Han Yu Chu, and the registration was completed in April 2022. The paid-in capital for establishment was $150,000 and the investment amount of non-controlling equity shareholders was $28,500.
Note 2: Han Yu Chu has changed its name to "Pottery Inc.", and the registration was completed in October 2022.

~16~

Note 3: GloryStone acquired 35% equity interest in Flying horse on Maryland from noncontrolling interest shareholders in August 2023 at a price of $3,940.
Note 4: Pottery acquired 86% equity interest in Flying horse on Maryland from GloryStone in September 2023 at a price of $9,411.
Note 5: HeXin Shang Mao completed the registration of its name change in October 2023 and is now named as Guangdong Shekel Technology Co., Ltd.
C. Subsidiaries not included in the consolidated financial statements: None.
D. Adjustments for subsidiaries with different balance sheet dates: None.
E. Significant restrictions: None.
F. Subsidiaries that have non-controlling interests that are material to the Group: None.

As of December 31, 2023 and 2022, the non-controlling interest amounted to $559,032 and $614,364, respectively. The information on non-controlling interest and respective subsidiaries is as follows:

as follows:
Name of Principal place subsidiary business GloryStone Taiwan	Non-controllinginterest
	Ownership Amount (%) 559,032 $ 0.00% December31,2023	December31,2022
		Ownership Amount (%) 614,364 $ 57.69%

Summarised financial information of the subsidiaries:

Balance sheets

Balance sheets
			GloryStone
		December	31,2023	December	31,2022
Current assets		$	681,465	$	773,473
Non-current assets			1,374,957		1,454,252
Current liabilities	(		119,793)	(	110,710)
Non-current liabilities	(		933,595)	(	1,019,303)
Total net assets		$	1,003,034	$	1,097,712

~17~

Statements of comprehensive income

GloryStone

			Years ended	December31	December31
			2023		2022
Revenue		$	169,849	$	236,692
(Loss) profit before income tax	(		87,326)		25,458
Income tax expense	(		3,412)	(	1,896)
Net (loss) profit	($		90,738)	$	23,562
Total comprehensive (loss) income	($		90,738)	$	23,562
Comprehensive income attributable to
non-controlling interest		$	51,392	$	4,493

Statements of cash flows

Net cash flows from operating activities Net cash flows from (used in) investing Net cash flows used in financing activities Increase (decrease) in cash and cash equivalents Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year	2023 2022 42,481 $ 141,115 $ 307,425 163,094) ( 103,622) ( 31,531) ( 246,284 53,510) ( 78,870 132,380 325,154 $ 78,870 $ GloryStone Years endedDecember31

(4) Foreign currency translation

Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The consolidated financial statements are presented in NTD, which is the Group’s functional and presentation currency.

A. Foreign currency transactions and balances
(a) Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions are recognised in profit or loss in the period in which they arise.
(b) Monetary assets and liabilities denominated in foreign currencies at the period end are retranslated at the exchange rates prevailing at the balance sheet date. Exchange differences arising upon re-translation at the balance sheet date are recognised in profit or loss.

~18~

(c) Non-monetary assets and liabilities denominated in foreign currencies held at fair value through profit or loss are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognised in profit or loss. Non-monetary assets and liabilities denominated in foreign currencies held at fair value through other comprehensive income are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognised in other comprehensive income. However, nonmonetary assets and liabilities denominated in foreign currencies that are not measured at fair value are translated using the historical exchange rates at the dates of the initial transactions.
(d) All other foreign exchange gains and losses based on the nature of those transactions are presented in the statement of comprehensive income within ‘other gains and losses’.
B. Translation of foreign operations
The operating results and financial position of all the group entities, associates and joint arrangements that have a functional currency different from the presentation currency are translated into the presentation currency as follows:
(a) Assets and liabilities for each balance sheet presented are translated at the closing exchange rate at the date of that balance sheet;
(b) Income and expenses for each statement of comprehensive income are translated at average exchange rates of that period; and
(c) All resulting exchange differences are recognised in other comprehensive income.

(5) Classification of current and non-current items

A. Assets that meet one of the following criteria are classified as current assets; otherwise they are classified as non-current assets:
(a) Assets arising from operating activities that are expected to be realised, or are intended to be sold or consumed within the normal operating cycle;
(b) Assets held mainly for trading purposes;
(c) Assets that are expected to be realised within twelve months from the balance sheet date;
(d) Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are to be exchanged or used to settle liabilities more than twelve months after the balance sheet date.
B. Liabilities that meet one of the following criteria are classified as current liabilities; otherwise they are classified as non-current liabilities:
(a) Liabilities that are expected to be settled within the normal operating cycle;
(b) Liabilities arising mainly from trading activities;
(c) Liabilities that are to be settled within twelve months from the balance sheet date;

~19~

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

(6) Cash equivalents

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

(7) Financial assets at fair value through profit or loss

A. Financial assets at fair value through profit or loss are financial assets that are not measured at amortised cost or fair value through other comprehensive income.
B. On a regular way purchase or sale basis, financial assets at fair value through profit or loss are recognised and derecognised using settlement date accounting.
C. At initial recognition, the Group measures the financial assets at fair value and recognises the transaction costs in profit or loss. The Group subsequently measures the financial assets at fair value, and recognises the gain or loss in profit or loss.
D. The Group recognises the dividend income when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Group and the amount of the dividend can be measured reliably.

(8) Financial assets at fair value through other comprehensive income

A. Financial assets at fair value through other comprehensive income comprise equity securities which are not held for trading, and for which the Group has made an irrevocable election at initial recognition to recognise changes in fair value in other comprehensive income:
(a) The objective of the Group’s business model is achieved both by collecting contractual cash flows and selling financial assets; and
(b) The assets’ contractual cash flows represent solely payments of principal and interest.
B. On a regular way purchase or sale basis, financial assets at fair value through other comprehensive income are recognised and derecognised using settlement date accounting.
C. At initial recognition, the Group measures the financial assets at fair value plus transaction costs. The Group subsequently measures the financial assets at fair value:

The changes in fair value of equity investments that were recognised in other comprehensive income are reclassified to retained earnings and are not reclassified to profit or loss following the

~20~

derecognition of the investment. Dividends are recognised as revenue when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Group and the amount of the dividend can be measured reliably.

(9) Financial assets at amortised cost

A. Financial assets at amortised cost are those that meet all of the following criteria:
(a) The objective of the Group’s business model is achieved by collecting contractual cash flows.
(b) The assets’ contractual cash flows represent solely payments of principal and interest.
B. On a regular way purchase or sale basis, financial assets at amortised cost are recognised and derecognised using settlement date accounting.
C. At initial recognition, the Group measures the financial assets at fair value plus transaction costs. Interest income from these financial assets is included in finance income using the effective interest method. A gain or loss is recognised in profit or loss when the asset is derecognised or impaired.
D. The Group’s time deposits which do not fall under cash equivalents are those with a short maturity period and are measured at initial investment amount as the effect of discounting is immaterial.

(10) Accounts receivable

A. Accounts receivable entitle the Group a legal right to receive consideration in exchange for transferred goods or rendered services.
B. The short-term accounts receivable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

(11) Impairment of financial assets

For financial assets at amortised cost including accounts receivable or contract assets that have a significant financing component, lease receivables, loan commitments and financial guarantee contracts, at each reporting date, the Group recognises the impairment provision for 12 months expected credit losses if there has not been a significant increase in credit risk since initial recognition or recognises the impairment provision for the lifetime expected credit losses (ECLs) if such credit risk has increased since initial recognition after taking into consideration all reasonable and verifiable information that includes forecasts. On the other hand, for accounts receivable or contract assets that do not contain a significant financing component, the Group recognises the impairment provision for lifetime ECLs.

(12) Derecognition of financial assets

The Group derecognises a financial asset when the contractual rights to receive the cash flows from the financial asset expire.

~21~

－ (13) Leasing arrangements (lessor) operating leases

Lease income from an operating lease (net of any incentives given to the lessee) is recognised in profit or loss on a straight-line basis over the lease term.

(14) Inventories

Inventories are stated at the lower of cost and net realisable value. Cost is determined using the weighted-average method. The cost of finished goods and work in progress comprises raw materials, direct labour, other direct costs and related production overheads (allocated based on normal operating capacity). It excludes borrowing costs. The item by item approach is used in applying the lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated cost of completion and applicable variable selling expenses.

(15) Property, plant and equipment

A. Property, plant and equipment are initially recorded at cost. Borrowing costs incurred during the construction period are capitalised.
B. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred.
C. Property, plant and equipment apply cost model and are depreciated using the straight-line method to allocate their cost over their estimated useful lives. Each part of an item of property, plant, and equipment with a cost that is significant in relation to the total cost of the item must be depreciated separately.
D. The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each financial year-end. If expectations for the assets’ residual values and useful lives differ from previous estimates or the patterns of consumption of the assets’ future economic benefits embodied in the assets have changed significantly, any change is accounted for as a change in estimate under IAS 8, ‘Accounting Policies, Changes in Accounting Estimates and Errors’, from the date of the change. The estimated useful lives of property, plant and equipment are as follows:

Buildings and structures 2~35 years Machinery equipments 2~15 years Furniture and fixtures 1~9 years Other equipments 2~9 years

~22~

(16) Leasing arrangements (lessee) － right-of-use assets / lease liabilities

A. Leases are recognised as a right-of-use asset and a corresponding lease liability at the date at which the leased asset is available for use by the Group. For short-term leases or leases of lowvalue assets, lease payments are recognised as an expense on a straight-line basis over the lease term.
B. Lease liabilities include the net present value of the remaining lease payments at the commencement date, discounted using the incremental borrowing interest rate. Lease payments are comprised of fixed payments, less any lease incentives receivable.

The Group subsequently measures the lease liability at amortised cost using the interest method and recognises interest expense over the lease term. The lease liability is remeasured and the amount of remeasurement is recognised as an adjustment to the right-of-use asset when there are changes in the lease term or lease payments and such changes do not arise from contract modifications.

C. At the commencement date, the right-of-use asset is stated at cost comprising the following:
(a) The amount of the initial measurement of lease liability;
(b) Any lease payments made at or before the commencement date; and
(c) Any initial direct costs incurred by the lessee.

The right-of-use asset is measured subsequently using the cost model and is depreciated from the commencement date to the earlier of the end of the asset’s useful life or the end of the lease term. When the lease liability is remeasured, the amount of remeasurement is recognised as an adjustment to the right-of-use asset.

D. For lease modifications that decrease the scope of the lease, the lessee shall decrease the carrying amount of the right-of-use asset to reflect the partial or full termination of the lease, and recognise the difference between remeasured lease liability in profit or loss.

(17) Intangible assets

Computer software is stated at cost and amortised on a straight-line basis over its estimated useful life of 2 to 6 years.

(18) Impairment of non-financial assets

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

~23~

(19) Borrowings

A. Borrowings comprise long-term and short-term bank borrowings and other long-term and shortterm loans. Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortised cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognised in profit or loss over the period of the borrowings using the effective interest method.
B. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a pre-payment for liquidity services and amortised over the period of the facility to which it relates.

(20) Notes and accounts payable

A. Accounts payable are liabilities for purchases of raw materials, goods or services and notes payable are those resulting from operating and non-operating activities.
B. The short-term accounts and notes payable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

(21) Bonds payable

Ordinary corporate bonds issued by the Group are initially recognised at fair value, net of transaction costs incurred. Ordinary corporate bonds are subsequently stated at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is accounted for as the premium or discount on bonds payable and presented as an addition to or deduction from bonds payable, which is amortized in profit or loss as an adjustment to the ‘financial cost’ over the period of bond circulation using the effective interest method.

(22) Derecognition of financial liabilities

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

(23) Non-hedging derivatives

Non-hedging derivatives are initially recognised at fair value on the date a derivative contract is entered into and recorded as financial assets or financial liabilities at fair value through profit or loss. They are subsequently remeasured at fair value and the gains or losses are recognised in profit or loss.

~24~

(24) Provisions

Provisions are recognised when the Group has a present legal or constructive obligation as a result of past events, and it is probable that an outflow of economic resources will be required to settle the obligation and the amount of the obligation can be reliably estimated. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation on the balance sheet date, as a deduction of sales revenue in the period when related products are sold.

(25) Employee benefits

A. Short-term employee benefits

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

B. Pensions
(a) Defined contribution plan

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

(b) Defined benefit plan

i. Net obligation under a defined benefit plan is defined as the present value of an amount of pension benefits that employees will receive on retirement for their services in current period or prior periods. The liability recognised in the balance sheet in respect of defined benefit pension plan is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets. The net defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The rate used to discount is determined by using interest rates of government bonds (at the balance sheet date).
ii. Remeasurements arising on defined benefit plan is recognised in other comprehensive income in the period in which they arise and are recorded as retained earnings.

iii. Past service costs are recognised immediately in profit or loss.

C. Employees’ compensation and directors’ remuneration

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

~25~

- (26) Employee share based payment

For the equity-settled share-based payment arrangements, the employee services received are measured at the fair value of the equity instruments granted at the grant date, and are recognised as compensation cost over the vesting period, with a corresponding adjustment to equity. The fair value of the equity instruments granted shall reflect the impact of market vesting conditions and non-vesting conditions. Compensation cost is subject to adjustment based on the service conditions that are expected to be satisfied and the estimates of the number of equity instruments that are expected to vest under the non-market vesting conditions at each balance sheet date. Ultimately, the amount of compensation cost recognised is based on the number of equity instruments that eventually vest.

(27) Income taxes

A. The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or items recognised directly in equity, in which cases the tax is recognised in other comprehensive income or equity.
B. The current income tax expense is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Company and its subsidiaries operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in accordance with applicable tax regulations. It establishes provisions where appropriate based on the amounts expected to be paid to the tax authorities. An additional tax is levied on the unappropriated retained earnings and is recorded as income tax expense in the year the stockholders resolve to retain the earnings.
C. Deferred tax is recognised, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated balance sheet. Deferred tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled.
D. Deferred tax assets are recognised only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised. At each balance sheet date, unrecognised and recognised deferred tax assets are reassessed.

(28) Share capital

A. Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or stock options are shown in equity as a deduction, net of tax, from the proceeds.
B. Where the Company repurchases the Company’s equity share capital that has been issued, the consideration paid, including any directly attributable incremental costs (net of income taxes) is deducted from equity attributable to the Company’s equity holders. Where such shares are

~26~

subsequently reissued, the difference between their book value and any consideration received, net of any directly attributable incremental transaction costs and the related income tax effects, is included in equity attributable to the Company’s equity holders.

(29) Dividends

Dividends are recorded in the Group’s financial statements in the period in which they are approved by the Group’s shareholders. Cash dividends are recorded as liabilities.

(30) Revenue recognition

A. Sales of goods

(a) The Group manufactures and sells touch panel and related products. Sales are recognised when control of the products has transferred, being when the products are delivered to the buyer, the buyer has full discretion over the channel and price to sell the products, and there is no unfulfilled obligation that could affect the buyer’s acceptance of the products. Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the buyer, and either the buyer has accepted the products in accordance with the sales contract, or the Group has objective evidence that all criteria for acceptance have been satisfied.
(b) Sales revenue of products was recognised based on the contract price net of sales returns and discount. The sales returns and discounts are estimated based on the anticipated annual sales quantities. Accumulated experience is used to estimate and provide for the sales returns and discounts, using the anticipated annual sales quantities, and revenue is only recognised to the extent that it is highly probable that a significant reversal will not occur. The estimation is subject to an assessment at each reporting date. A refund liability is recognised for expected sales returns and discounts payable to customers in relation to sales made until the end of the reporting period. No element of financing is deemed present as the control was transferred with a credit term of 60 days, which is consistent with market practice.
(c) A receivable is recognised when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due.

B. Leases

The Group is engaged in the leasing of certain property classified as operating leases based on the lease condition. The lease payments received during the leasing period on a straight line basis are recognised as property lease income.

~27~

C. Food services, sale of hotel products, accommodation and related services
(a) Revenue from food services and sale of hotel products are recognised upon transfer of the items to customers. Payment of the transaction price is due immediately when the customer purchases products.
(b) Revenue from accommodation is recognised in the accounting period in which the services are rendered. The customer pays at the time specified in the payment schedule.
(c) As the time interval between the transfer of committed goods or services and the payment of customer does not exceed one year, the Group does not adjust the transaction price to reflect the time value of money.

(31) Government grants

Government grants are recognised at their fair value only when there is reasonable assurance that the Group will comply with any conditions attached to the grants and the grants will be received. Government grants are recognised in profit or loss on a systematic basis over the periods in which the Group recognises expenses for the related costs for which the grants are intended to compensate.

(32) Operating segments

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The Group’s chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Board of Directors that makes strategic decisions.

5. Critical Accounting Judgements, Estimates and Key Sources of Assumption Uncertainty

The preparation of these consolidated financial statements requires management to make critical judgements in applying the Group’s accounting policies and make critical assumptions and estimates concerning future events. Assumptions and estimates may differ from the actual results and are continually evaluated and adjusted based on historical experience and other factors. Such assumptions and estimates have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. The related information is addressed below:

(1) Critical judgements in applying the Group’s accounting policies

None.

(2) Critical accounting estimates and assumptions

A. Impairment assessment of tangible assets

The Group assesses impairment based on its subjective judgement and determines the separate cash flows of a specific group of assets, useful lives of assets and the future possible income and expenses arising from the assets depending on how assets are utilised and industrial characteristics.

~28~

Any changes of economic circumstances or estimates due to the change of Group strategy might cause material impairment on assets in the future.

B. Realisability of deferred tax assets
Deferred tax assets are recognised only to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences can be utilised. Assessment of the realisability of deferred tax assets involves critical accounting judgements and estimates of the management, including the assumptions of expected future sales revenue growth rate and profit rate, available tax credits, tax planning, etc. Any variations in global economic environment, industrial environment, and laws and regulations might cause material adjustments to deferred tax assets.

As of December 31, 2023, the Group recognised deferred tax assets amounting to $87,639.

6. Details of Significant Accounts

(1) Cash and cash equivalents

Cash on hand and revolving funds Checking accounts and demand deposits Time deposits Cash equipment Bills with repurchase agreement	December31,2023 December31,2022 264 $ 443 $ 465,935 384,058 1,250,000 1,400,000 115,000 30,000 1,831,199 $ 1,814,501 $

A. The Group transacts with a variety of financial institutions all with high credit quality to disperse credit risk, so it expects that the probability of counterparty default is remote.
B. Certain cash and cash equivalents which were pledged as collaterals and restricted have been transferred to other financial assets. Refer to Notes 6(7) and 8 for details.
C. As of December 31, 2023 and 2022, time deposits with maturity over three months amounting to $337,438 and $781,000, respectively, were reclassified as financial assets at amortised cost due to its lack of high liquidity in nature. Refer to Note 6(4) for details.

~29~

(2) Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss
Items Current items: Financial assets mandatorily measured at fair value through profit or loss Listed stocks Unlisted stocks Non-hedging derivatives Valuation adjustment Items Non-current items: Financial assets mandatorily measured at fair value through profit or loss Unlisted stocks Beneficiary certificates Valuation adjustment	December31,2023 242,689 $ 48,877 707 292,273 5,680 297,953 $ December31,2023 72,100 $ 100,592 172,692 46,598 219,290 $	December31,2022
		124,962 $ 48,877 48
		173,887 32,486) (
		141,401 $
		December31,2022
		62,100 $ 103,498
		165,598 12,360
		177,958 $

A. The nature of financial assets at fair value through profit or loss are as follows:
(a) Equity instruments: including listed and unlisted stocks.
(b) Beneficiary certificates: including foreign and domestic limited partnership.
(c) Derivative instruments: including forward foreign exchange contracts.
B. Amounts recognised in profit or loss in relation to financial assets / liabilities at fair value through profit or loss are listed below:

Financial assets / liabilitites mandatorily measured at fair value through profit or loss Equity instruments Beneficiary certificates Derivative instruments (	2023 2022 71,462 $ 11,218 $ 30,670 3,809) ( 2,550) 25,240) ( 99,582 $ 17,831) ($ Years endedDecember31

~30~

C. The Group entered into contracts relating to derivative financial assets which were not accounted for under hedge accounting. The information is listed below:

Derivative financial instruments Presale forward exchange contracts -Sell USD and buy NTD Derivative financial instruments Presale forward exchange contracts -Sell USD and buy NTD	December31,2023	December31,2023
	(Notionalprincipal) (In thousands) Contractperiod USD 1,300 $ 2023/12/20-2024/2/6 Contract amount December31,2022	Contractperiod
	(Notionalprincipal) (In thousands) USD 1,500 $ Contract amount	Contractperiod
	(Notionalprincipal) USD
		2022/12/29-2023/1/31

The Group entered into forward foreign exchange contracts to sell to hedge exchange rate risk. However, these forward foreign exchange contracts are not accounted for under hedge accounting.

D. Information relating to credit risk of financial assets at fair value through profit or loss is provided in Note 12(2).

(3) Financial assets at fair value through other comprehensive income

Items Non-current items: Equity instruments Listed stocks Valuation adjustment (	December31,2023 December31,2022 646,094 $ 644,302 $ 55,727) 90,481) ( 590,367 $ 553,821 $

A. The Group has elected to classify equity investments that are considered to have stable dividend as financial assets at fair value through other comprehensive income. The fair value of such investments amounted to $590,367 and $553,821 as at December 31, 2023 and 2022, respectively.

~31~

B. Amounts recognised in profit or loss and other comprehensive income in relation to the financial assets at fair value through other comprehensive income are listed below:

Equity instruments at fair value through other comprehensive income Fair value change recognised in other comprehensive income Dividend income recognised in profit or loss Held at end of year	Years endedDecember31	Years endedDecember31
	2023 2022 34,754 $ 308,237) ($ - $ 46,760 $	2022

C. As at December 31, 2023 and 2022, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the financial assets at fair value through other comprehensive income held by the Group was $590,367 and $553,821, respectively.
D. Information relating to credit risk of financial assets at fair value through other comprehensive income is provided in Note 12(2).

(4) Financial assets at amortised cost

Items Current items: Time deposits with maturity over three months Non-current items: Corporate bonds	December31,2023 December31,2022 337,438 $ 781,000 $ 137,461 $ $136,934

A. The Group recognised interest income in profit or loss in relation to financial assets at amortised cost in the amount of $14,375 and $5,783 for the years ended December 31, 2023 and 2022, respectively.
B. No financial assets at amortised cost of the Group were pledged to others.
C. As at December 31, 2023 and 2022, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the financial assets at amortised cost held by the Group was $474,899 and $917,934, respectively.
D. Information relating to credit risk of financial assets at amortised cost is provided in Note 12(2). The counterparties of the Group’s investments in certificates of deposits are financial institutions with high credit quality, so the Group expects that the probability of counterparty default is remote.

~32~

(5) Accounts receivable

Accounts receivable Less: Loss allowance (	December31,2023 124,297 $ 33) 124,264 $	December31,2022 293,044 $ 90) ( 292,954 $

A. As of December 31, 2023 and 2022, the estimated sales discounts and allowances were $533 and $9,142, respectively. Since the sales discounts and allowances met the requirements for offset of financial liabilities and financial assets, the net amounts were shown under accounts receivable.
B. The ageing analysis of accounts receivable that were past due but not impaired is as follows:

Not past due Up to 30 days	December31,2023 Accountsreceivable 117,407 $ 6,890 124,297 $	December31,2022
		Accountsreceivable
		272,665 $ 20,379
		293,044 $

The above ageing analysis was based on past due date.

C. As of December 31, 2023 and 2022, accounts receivable were all from contracts with customers. As of January 1, 2022, the balance of accounts receivable from contracts with customers amounted to $328,425.
D. As at December 31, 2023 and 2022, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the Group’s accounts receivable was $124,297 and $293,044, respectively.
E. Information relating to credit risk of accounts receivable is provided in Note 12(2).

(6) Inventories

Inventories
Raw materials Work in progress Finished goods Room supplies (Note)		December31,2023
	Allowance for Cost valuation loss 86,862 $ 27,260) ($ 36,293 - 45,672 11,207) ( 845 - 169,672 $ 38,467) ($		Bookvalue
			59,602 $ 36,293 34,465 845
			131,205 $

~33~

Raw materials Work in progress Finished goods Room supplies (Note)		December31,2022
	Allowance for Cost valuation loss Bookvalue 87,758 $ 12,323) ($ 75,435 $ 1,725 - 1,725 124,601 30,413) ( 94,188 784 - 784 214,868 $ 42,736) ($ 172,132 $

Note: Including food, beverage and merchandise inventory.

The cost of inventories recognised as expense for the year:

			Years ended	December	31
			2023	2022
Cost of goods sold		$	1,347,075	$	1,803,052
Unallocated overhead expense			789,840		429,857
(Gain on reversal of) loss on decline in market
value	(		4,269)		33,524
Scrapped inventory			18,856		6,337
		$	2,151,502	$	2,272,770

The gain on reversal of market price decline of inventory in 2023 was due to the Company’s active monitoring on obsolete and slow-moving inventories.

(7) Other current financial assets

Time deposits pledged Restricted bank deposits	December31,2023 December31,2022 30,005 $ 28,919 $ 16,632 16,112 46,637 $ 45,031 $

Refer to Note 8 for further information on other current financial assets pledged to others as collateral.

~34~

(8) Property, plant and equipment

January 1, 2023
Cost
Accumulated depreciation
and impairment
2023
At January 1
Additions
Disposals
Reclassifications
Depreciation
At December 31
December 31, 2023
Cost
Accumulated depreciation
and impairment

Buildings and
Machinery and
Furniture and
Unfinished
construction and
equipment under
Land
structures
equipment
fixtures
Otherequipment
acceptance
Total
4,974,140
$ 6,893,885
$ 8,785,603
$ 78,591
$ 70,583
$ 167,474
$ 20,970,276
$ -
3,021,608)
(
7,567,153)
(
35,006)
(
64,541)
(
-
10,688,308)
(
4,974,140
$ 3,872,277
$ 1,218,450
$ 43,585
$ 6,042
$ 167,474
$ 10,281,968
$ 4,974,140
$ 3,872,277
$ 1,218,450
$ 43,585
$ 6,042
$ 167,474
$ 10,281,968
$ -
5,149
-
5,351
2,200
358,478
371,178
-
304)
(
-

9,141)
(
-
-
9,445)
(
-
61,374
76,474
41,516
7,972
187,336)
(
-
-
371,962)
(
527,418)
(
21,236)
(
3,783)
(
-
924,399)
(
4,974,140
$ 3,566,534
$ 767,506
$ 60,075
$ 12,431
$ 338,616
$ 9,719,302
$ 4,974,140
$ 6,954,436
$ 8,288,475
$ 115,330
$ 75,445
$ 338,616
$ 20,746,442
$ -
3,387,902)
(
7,520,969)
(
55,255)
(
63,014)
(
-
11,027,140)
(
4,974,140
$ 3,566,534
$ 767,506
$ 60,075
$ 12,431
$ 338,616
$ 9,719,302
$

~35~

January 1, 2022
Cost
Accumulated depreciation
and impairment
2022
At January 1
Additions
Disposals
Reclassifications
Depreciation
At December 31
December 31, 2022
Cost
Accumulated depreciation
and impairment

Buildings and
Machinery and
Furniture and
Unfinished
construction and
equipment under
Land
structures
equipment
fixtures
Otherequipment
acceptance
Total
4,974,140
$ 6,740,526
$ 8,113,460
$ 53,956
$ 69,419
$ 431,371
$ 20,382,872
$ -
2,660,153)
(
7,091,233)
(
19,822)
(
61,683)
(
-
9,832,891)
(
4,974,140
$ 4,080,373
$ 1,022,227
$ 34,134
$ 7,736
$ 431,371
$ 10,549,981
$ 4,974,140
$ 4,080,373
$ 1,022,227
$ 34,134
$ 7,736
$ 431,371
$ 10,549,981
$ -

1,967

-

4,105
-
583,013
589,085
-
1,275)
(
-
406)
(
-
-
1,681)
(
-
152,667
672,143
20,936
1,164
846,910)
(
-
-
361,455)
(
475,920)
(
15,184)
(
2,858)
(
-
855,417)
(
4,974,140
$ 3,872,277
$ 1,218,450
$ 43,585
$ 6,042
$ 167,474
$ 10,281,968
$ 4,974,140
$ 6,893,885
$ 8,785,603
$ 78,591
$ 70,583
$ 167,474
$ 20,970,276
$ -
3,021,608)
(
7,567,153)
(
35,006)
(
64,541)
(
-
10,688,308)
(
4,974,140
$ 3,872,277
$ 1,218,450
$ 43,585
$ 6,042
$ 167,474
$ 10,281,968
$

Note 1: Refer to Note 8 for further information on property, plant and equipment pledged to others as collateral. Note 2: There is no capitalization of interests incurred on property, plant and equipment in 2023 and 2022.

~36~

－ (9) Lease transactions lessee

A. The Group leases various assets including land, buildings, machinery and business vehicles. Rental contracts are typically made for periods of 3 to 20 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose covenants, but leased assets may not be used as security for borrowing purposes.
B. Short-term leases with a lease term of 12 months or less comprise offices and parking lots. Lowvalue assets comprise foreign warehouse and dormitory.
C. The carrying amount of right-of-use assets and the depreciation charge are as follows:

Land Buildings and structures Transportation equipment (Business vehicles) Other equipment Land Buildings and structures Transportation equipment (Business vehicles) Other equipment	December31,2023 December31,2022 Bookvalue Bookvalue 261,429 $ 276,732 $ 144,033 161,715 66 480 5,330 7,059 410,858 $ 445,986 $ Years endedDecember31	December31,2022
		Bookvalue
		276,732 $ 161,715 480 7,059
		445,986 $
	2023 Depreciationcharge 15,303 $ 16,781 289 1,729 34,102 $	2022
		Depreciationcharge
		15,303 $ 8,908 321 1,728
		26,260 $

D. The movements of right-of-use assets of the Group during 2023 and 2022 are as follows:

At January 1 Modification Depreciation At December 31	2023
	Buildings and Transportation equipment Other equipment Land structures (Business vehicles ) (Tank) Total 276,732 $ 161,715 $ 480 $ 7,059 $ 445,986 $ - 901) ( 125) ( - 1,026) ( 15,303) ( 16,781) ( 289) ( 1,729) ( 34,102) ( 261,429 $ 144,033 $ 66 $ 5,330 $ 410,858 $

At January 1 Additions Depreciation At December 31	2022
	Buildings and Transportation equipment Land structures (Business vehicles ) 275,939 $ 8,007 $ 801 $ 16,096 162,616 - 15,303) ( 8,908) ( 321) ( 276,732 $ 161,715 $ 480 $	Other equipment (Tank) Total 8,787 $ 293,534 $ - 178,712 1,728) ( 26,260) ( 7,059 $ 445,986 $

~37~

E. The information on profit and loss accounts relating to lease contracts is as follows:

Items affecting profit or loss Interest expense on lease liabilities Expense on short-term lease contracts Expense on leases of low-value assets Expense on variable lease payments Loss on lease modification	Years endedDecember31	Years endedDecember31
	2023 9,268 $ 2,529 8,295 87 76	2022
		8,008 $ 2,465 10,664 - -

F. For the years ended December 31, 2023 and 2022, the Group’s total cash outflow for leases were $50,031 and $36,797, respectively.

(10) Leasing arrangements - lessor

A. The Group leases various assets including buildings. Rental contracts are typically made for periods of 1 and 20 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions.
B. For the years ended December 31, 2023 and 2022, the Group recognised rent income, based on the operating lease agreement, which does not include variable lease payments, as follows:

(11) (12)	Other payables Bonds payable Rent income Payables for machinery and equipment Repairs and maintenance expense payable Salary and bonus payable Utility expenses payable Processing charge payable Import / export (customs) expense payable Others Bonds payable Less: Maturity within one year	2023 2022 2,180 $ 2,020 $ Years endedDecember31 December31,2023 December31,2022 70,064 $ 114,687 69,174 68,923 62,253 85,662 16,847 20,448 5,621 - 933 4,333 76,901 67,588 301,793 $ 361,641 $ December31,2023 December31,2022 1,500,000 $ 1,500,000 $ - - 1,500,000 $ 1,500,000 $	2023 2022 2,180 $ 2,020 $ Years endedDecember31 December31,2023 December31,2022 70,064 $ 114,687 69,174 68,923 62,253 85,662 16,847 20,448 5,621 - 933 4,333 76,901 67,588 301,793 $ 361,641 $ December31,2023 December31,2022 1,500,000 $ 1,500,000 $ - - 1,500,000 $ 1,500,000 $
			2022 2,020 $ December31,2022
			114,687 68,923 85,662 20,448 - 4,333 67,588
			361,641 $
			December31,2022
			1,500,000 $ -
			1,500,000 $

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A. In order to fulfill working capital, the Board of Directors resolved to issue the first domestic secured ordinary bonds on May 5, 2021. The terms and conditions of the ordinary bonds were as follows:
(a) Issuance amount: The total issuance amount was NT$900 million. The bonds were divided into A, B and C bonds amounting to NT$300 million each.
(b) Face value: NT$1 million
(c) Issuance price: Issued at full amount of face value on the issuance date.
(d) The time limit of issuance: The issuance period for each bond is 5 years from July 5, 2021 to July 5, 2026.
(e) The interest rate of bond and payments of interest: The interest rate of each bond is 0.51% fixed per annum. The simple interest is calculated and paid per year starting from the issuance date.
(f) The repayment date and method: repayable at once on the maturity date.
(g) Guarantee: A, B and C bonds are secured by a bank guarantee issued by Mega International Commercial Bank Co., Ltd., Hua Nan Bank Co., Ltd. and Taishin International Bank Co., Ltd., respectively, in accordance with the commissioned guarantee agreement and bondfulfilling guarantee obligation agreement individually signed by the three banks.
(h) Guarantee bank: Bank SinoPac Co., Ltd.
B. In order to fulfill working capital, the Board of Directors resolved to issue the second domestic secured ordinary bonds on November 5, 2021. The terms and conditions of the ordinary bonds were as follows:
(a) Issuance amount: NT$600 million
(b) Face value: NT$1 million
(c) Issuance price: Issued at full amount of face value on the issuance date.
(d) The time limit of issuance: The issuance period is 5 years from November 26, 2021 to November 26, 2026.
(e) The interest rate of bond and payments of interest: The interest rate is 0.57% fixed per annum. The simple interest is calculated and paid per year starting from the issuance date.
(f) The repayment date and method: repayable at once on the maturity date.
(g) Guarantee: The bonds are guaranteed by a bank guarantee issued by Taiwan Shin Kong Commercial Bank Co., Ltd. in accordance with the commissioned guarantee agreement and bond-fulfilling guarantee obligation agreement.
(h) Guarantee bank: Taishin International Bank Co., Ltd.
C. The Group reclassified current portion of long-term debt based on liquidity, categorizing them as long-term liabilities due within one year or one operating cycle. The amount as of December 31, 2023 and 2022 was $0.

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- (13) Long term borrowings

Borrowingnature, periodandrepayment term
Coupon Rate
Land and buildings on Yixian Road, Sec. 2 pledged as
collateral for borrowings
NTD borrowings from Land Bank: the borrowing
period is 15 years and interest is payable monthly for
the first 3 years, principal is payable quarterly starting
from the 4th year until May 2033 (Note).
1.95%
Machinery and equipment pledged as collateral for
borrowings
NTD borrowings from Bank of Taiwan: the borrowing
period is 5 years and interest is payable monthly for
the first 2 years, principal is payable quarterly starting
from the 3rd year until October 2026.
1.92%
NTD borrowings from Chang Hwa Commercial Bank:
the borrowing period is 5 years and interest is payable
quarterly, principal is payable quarterly starting from
the inception date until September 2028.
2.00%
Less: Current portion (including unamortised long-term
(
borrowing cost)
Borrowingnature, periodandrepayment term
Coupon Rate
Land and buildings on Yixian Road, Sec. 2 pledged as
collateral for borrowings
NTD borrowings from Land Bank: the borrowing
period is 15 years and interest is payable monthly for
the first 3 years, principal is payable quarterly starting
from the 4th year until May 2033 (Note).
1.70%
Machinery and equipment pledged as collateral for
borrowings
NTD borrowings from Bank of Taiwan: the borrowing
period is 5 years and interest is payable monthly for
the first 2 years, principal is payable quarterly starting
from the 3rd year until October 2026.
1.79%
Less: Current portion (including unamortised long-term
(
borrowing cost)

December 31, 2023
1,641,159
$ 567,770
47,500
2,256,429
372,010)

1,884,419
$ December31,2022
1,813,913
$ 336,630
2,150,543
172,754)

1,977,789
$

Note: The Group has pledged certain property, plant and equipment as collateral for the above borrowing. On May 8, 2018, the Group entered into a loan for 15 years with Land Bank, for

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a facility of $4,160,000 and has repaid $1,100,000 and $900,000 in advance in December 2021 and January 2022, respectively.

(14) Pensions

A. Effective July 1, 2005, the Group has established a defined contribution pension plan (the “New Plan”) under the Labor Pension Act (the “Act”), covering all regular employees with R.O.C. nationality. Under the New Plan, the Group contributes monthly an amount based on 6% of the employees’ monthly salaries and wages to the employees’ individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment.
B. The pension costs under the defined contribution pension plan of the Group for the years ended December 31, 2023 and 2022 were $14,163 and $13,508, respectively.

(15) Share-based payment

A. For the year ended December 31, 2023, the Group’s share-based payment arrangements were as follows:

follows:
Type of arrangement	Grantdate Quantity granted 2023/1/12 1,907 thousand shares (note) 2023/8/14 3,750 thousand shares (note)	Vesting conditions
First share repurchase and employee incentive plan in 2022 First share repurchase and employee incentive plan in 2023		Vested immediately Vested immediately

The above share-based payment arrangements are settled by equity.

Note: The chairman was authorised to determine the distribution of remaining shares if repurchased shares were not fully purchased by employees.

For the year ended December 31, 2022, there was no share-based payment arrangement.

B. Details of the share-based payment arrangements are as follows:

Options outstanding at January 1 Options granted Options exercised Options expired Options outstanding at December 31	2023
	No. ofoptions (in thousands)
	- 5,657 719) ( 4,938) ( -

For the year ended December 31, 2022, there was no share-based payment arrangement.

C. The weighted-average stock price of stock options at exercise dates for the year ended December
31, 2023 was $10.06. There was no share-based payment arrangement for the year ended

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December 31, 2022.

D. The fair value of stock options granted on grant date is measured using the Black-Scholes optionpricing model. Relevant information is as follows:

Type of arrangement Grantdate First share repurchase and employee incentive plan in 2022 2023/1/12 First share repurchase and employee incentive plan in 2023 2023/8/14	Stock price Exercise price Expected price volatility Expected option life Expected dividends Risk- free interest rate Fair value perunit $9.59 (in dollars) $9.19 (in dollars) 28.27% 24 days - 28.27% $0.12 (in dollars) $9.51 (in dollars) $10.06 (in dollars) 27.23% 11 days - 0.96% $0 (in dollars)

Note 1: Expected price volatility of first share repurchase and employee incentive plan in 2022 adopted the average annualized standard deviation of return rate for the period from July 13, 2022 to January 12, 2023 of HannsTouch Holdings Company as a hypothetical value.
Note 2: Expected price volatility of first share repurchase and employee incentive plan in 2023 adopted the average annualized standard deviation of return rate for the period from August 4, 2023 to August 14, 2023 of HannsTouch Holdings Company as a hypothetical value.
E. Expenses incurred on share-based payment transactions are shown below:

Equity-settled		2023	2022
		229 $	- $

(16) Share capital

A. As of December 31, 2023, the Company’s authorized capital was $20,000,000, consisting of 2 billion shares, and the paid-in capital was $8,020,105 with a par value of $10 (in dollars) per share.

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

At January 1 Employee share options exercised Purchase of treasury shares ( At December 31	2023 805,042 719 3,750) ( 802,011	2022 806,949 - 1,907) 805,042

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B. In order to promote the development of strategy alliance, improve financial structure and fulfill working capital, the Company's shareholders, on May 29, 2023, resolved to increase capital in cash and issue common shares up to 80 million shares or increase capital through the issuance of global depository receipts. The Company will choose one or both methods, at a par value of NT$10 per share.
C. Treasury shares
(a) On February 20, 2023, the Board of Directors of the Company resolved to repurchase the Company’s ordinary shares to transfer to employees. The expected number of shares to be repurchased was 5,000 thousand shares. The repurchase period was from February 21, 2023 to April 20, 2023, and the price range was between $7.18 (in dollars) and $13.00 (in dollars). The details are as follows:

Name of company holdingthe shares	Reason for reacquisition	December	31,2023
		Number of shares (in thousands)	Carryingamount
The Company	To be reissued to employees	3,750	$ 37,738

Note 1: The Company has executed the expiration of the repurchase period on April 20, 2023, with accumulated buyback shares and total amount of shares being 3,750 thousand shares and $37,738, respectively.
Note 2: On October 31, 2023, the Board of Directors resolved the implementation of cancellation and reduction of capital by repurchasing treasury stocks. The reduction of capital base date was October 31, 2023, and the changes have been completed on November 13, 2023.
(b) On August 1, 2022, the Board of Directors of the Company resolved to repurchase the Company’s ordinary shares to transfer to employees. The expected number of shares to be repurchased was 20,000 thousand shares. The repurchase period was from August 2, 2022 to September 30, 2022, and the price range was between $6.59 (in dollars) and $14.57 (in dollars). The details are as follows:

Name of company holdingthe shares	Reason for reacquisition	December	31,2022
		Number of shares (in thousands)	Carrying amount (Note)
		1,907	$ 18,264

On February 20, 2023, the Board of Directors resolved the retirement of treasury stocks. The base date of retirement was set on March 30, 2023, and the related procedure was completed on April 13, 2023.

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(c) Pursuant to the R.O.C. Securities and Exchange Act, the number of shares bought back as treasury share should not exceed 10% of the number of the Company’s issued and outstanding shares and the amount bought back should not exceed the sum of retained earnings, paid-in capital in excess of par value and realised capital surplus.
(d) Pursuant to the R.O.C. Securities and Exchange Act, treasury shares should not be pledged as collateral and is not entitled to dividends before it is reissued.
(e) Pursuant to the R.O.C. Securities and Exchange Act, treasury shares should be reissued to the employees within five years from the reacquisition date and shares not reissued within the five-year period are to be retired. Treasury shares to enhance the Company’s credit rating and the stockholders’ equity should be retired within six months of acquisition.

(17) Capital surplus

Pursuant to the R.O.C. Company Act, capital surplus arising from paid-in capital in excess of par value on issuance of common stocks and donations can be used to cover accumulated deficit or to issue new stocks or cash to shareholders in proportion to their share ownership, provided that the Company has no accumulated deficit. Further, the R.O.C. Securities and Exchange Act requires that the amount of capital surplus to be capitalised mentioned above should not exceed 10% of the paidin capital each year. However, capital surplus should not be used to cover accumulated deficit unless the legal reserve is insufficient.

(18) Retained earnings / Events after the balance sheet date

A. Under the Company’s Articles of Incorporation, the annual earnings, if any, shall first be used to pay all taxes and offset accumulated deficit and then 10% of the remaining amount shall be set aside as legal reserve until the legal reserve equals the paid-in capital. Except for the distribution of cash dividends and bonus which the Board of Directors are authorised to resolve and then report to shareholders, others will be proposed by the Board of Directors and approved by the shareholders.
B. According to the Articles of Incorporation, the Company shall consider to appropriate all of current undistributed earnings based on finance, business, operation and other factors. The appropriation of earnings can be in the form of cash dividend or stock dividend separately or both. The ratio of cash dividend shall not be lower than 20% of the total dividends distributed.
C. Except for covering accumulated deficit or issuing new stocks or cash to shareholders in proportion to their share ownership, the legal reserve shall not be used for any other purpose. The use of legal reserve for the issuance of stocks or cash to shareholders in proportion to their share ownership is permitted, provided that the distribution of the reserve is limited to the portion in excess of 25% of the Company’s paid-in capital.

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D. On February 27, 2024, due to the post-tax loss for the year ended December 31, 2023, the Board of Directors of the Company resolved not to distribute profits but only resolved the reversal of special reserve of $33,942.
E. The appropriations of 2022 and 2021 earnings as resolved by the shareholders on May 29, 2023 and May 24, 2022, respectively, are as follows:

Years endedDecember31	Years endedDecember31	Years endedDecember31
Dividends per share Dividends per share Amount (indollars) Amount (indollars) 2,477 $ 100,041 $ 90,461 6,457) ( - - $ 282,432 0.35 $ 92,938 $ 376,016 $ 2022 2021	2021
Amount 2,477 $ 90,461 - 92,938 $		Dividends per share (indollars)
		0.35 $

(19) Operating revenue

Operating revenue
Revenue from contracts with customers Touch sensors and related products Revenue from hotel business Rental revenue from property	Years endedDecember31
	2023 2022 1,080,347 $ 2,098,527 $ 168,780 235,439 82,699 71,997 1,331,826 $ 2,405,963 $

Disaggregation of revenue from contracts with customers

The Group derives revenue from the transfer of goods and services at a point in time in the following major geographical regions:

p g major geographical regions:	p	p
Revenue from external customer contracts China South Korea Taiwan Europe	Years endedDecember31
	2023 627,717 $ 347,446 351,525 5,138 1,331,826 $	2022
		939,013 $ 1,130,362 334,527 2,061
		2,405,963 $

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(20) Interest income

Interest income
Interest income from bank deposits Interest income from financial assets measured at amortised cost Other interest income	Years endedDecember31
	2023 18,141 $ 14,375 389 32,905 $	2022
		10,867 $ 5,783 158
		16,808 $

(21) Other income

Other income
Revenue from purchasing masks on behalf of others Dividend income Rent income (Note 1) Government grant revenues (Note 2) Research and development income (Note 3) Other income	Years endedDecember31
	2023 16,253 9,242 2,180 477 - 15,992 44,144 $	2022
		10,859 52,972 2,020 10,566 33,506 14,814
		124,737 $

Note 1: Refer to Note 6(10) for details.

Note 2: Government subsidy due to the impact of Covid-19 and recognized revenue of $22 in 2023. Note 3: From the design and process development entrusted by the Group’s associate, Hannstar Display Corp.

(22) Other gains and losses

Other gains and losses
			Years ended	December31
			2023		2022
Gains (losses) on financial instruments at fair
value through profit or loss		$	99,582	($		17,831)
Foreign exchange gains			8,210			40,227
Gains (losses) on disposals of property, plant and
equipment			1,970	(		1,681)
Losses on lease modifications	(		76)			-
Other losses	(		6,557)	(		425)
		$	103,129		$	20,290

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(23) Employee benefit expense and expenses by nature / Events after the balance sheet date

YearendedDecember31,2023	YearendedDecember31,2023	YearendedDecember31,2023
Operating costs Operating expenses Total 167,625 $ 91,404 $ 259,029 $ 20,621 8,840 29,461 9,335 4,828 14,163 21,898 10,676 32,574 942,398 16,103 958,501 7,058 3,475 10,533 YearendedDecember31,2022		Total
Operating costs 161,175 $ 20,913 9,235 23,246 871,921 7,183	Operating expenses 85,872 $ 8,329 4,273 10,165 9,756 4,217	Total
		247,047 $ 29,242 13,508 33,411 881,677 11,400

A. In accordance with the Articles of Incorporation of the Company, a ratio of distributable profit of the current year, after covering accumulated losses, shall be distributed as employees’ compensation and directors’ and supervisors’ remuneration. The ratio shall be 0.001% for employees’ compensation and shall not be higher than 2% for directors’ remuneration.
B. For the years ended December 31, 2023 and 2022, employees’ compensation was accrued at $0 and $1, respectively; while no directors’ remuneration was accrued. The aforementioned amounts were recognised in salary expenses.

For the year ended December 31, 2023, the employees’ compensation and directors’ remuneration were estimated and accrued based on profit of current year distributable as of the end of reporting period as prescribed by the Company’s Articles of Incorporation. On February 27, 2024, the Board of Directors during its meeting resolved not to distribute employees’ compensation and directors’ and supervisors’ remuneration.

Employees’ compensation and directors’ remuneration for 2022 as resolved by the Board of Directors were in agreement with those amounts recognised in the 2022 financial statements.

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

(24) Income taxes

A. Income tax expense (benefit)

Components of income tax expense (benefit):

mponents of income tax expense (benefit):
Current tax: Current tax on profits for the year Prior year income tax overestimation ( Total current tax ( Deferred tax: Origination and reversal of temporary differences Total deferred tax	Years endedDecember31
	2023 2022 191 $ 102 $ 21,433) - 21,242) 102 24,843 15,129) ( 24,843 15,129) ( 3,601 $ 15,027) ($

B. Reconciliation between income tax expense (benefit) and accounting profit

			Years ended	December31	December31
			2023		2022
Income tax calculated by applying statutory	($		189,513)		$	2,848
rate to the profit before tax
Expenses disallowed by tax regulation			3,764			132
Tax exempt income by tax regulation	(		19,838)	(		14,459)
Temporary differences not recognised as
deferred tax assets			58	(		6,193)
Taxable loss not recognised as deferred tax
assets			212,988			2,645
Use of prior year taxable loss not recognised
as deferred tax assets	(		169)			-
Change in assessment of realisation of deferred
tax assets			17,744			-
Prior year income tax overestimation	(		21,433)			-
		$	3,601	($		15,027)

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C. Amounts of deferred tax assets or liabilities as a result of temporary differences and tax losses are as follows:

are as follows:
Temporary differences: －Deferred tax assets: Provisions Impairment loss Inventory valuation loss Unrealised loss on valuation of financial instruments Unrealised exchange gains and losses Bonus payable Unused annual leave allowance payable Loss carryforward －Deferred tax liabilities: Unrealised gain on valuation of financial instruments Temporary differences: －Deferred tax assets: Provisions Impairment loss Inventory valuation loss Loss carryforward Others －Deferred tax liabilities: Unrealised exchange gain (		Recognised in profitor loss Recognised in other comprehensive income At December31 1,721) ($ - $ 107 $ 2) ( - 11,175 855) ( - 7,693 833) ( - - 244 - 492 6,428 - 6,428 1,250 - 1,250 28,223) ( - 60,494 23,712) ($ - $ 87,639 $ 1,131) ($ - $ 1,131) ($ Recognised in profitor loss Recognised in other comprehensive income At December31 369) ($ - $ 1,828 $ - - 11,177 6,705 - 8,548 12,463 - 88,717 3,725) ( - 1,081 15,074 - 111,351 55 - - 15,129 $ - $ 111,351 $ 2023 2022
	AtJanuary1 1,828 $ 11,177 8,548 833 248 - - 88,717 111,351 $ - $
	AtJanuary1 2,197 $ 11,177 1,843 76,254 4,806 96,277 55) 96,222 $		Recognised in profitor loss
		369) ($ - 6,705 12,463 3,725) ( 15,074 55 15,129 $

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D. Expiration dates of unused tax losses and amounts of unrecognised deferred tax assets are as follows:

follows:
	December31,2023
Year incurred 2014 2016 2020 2021 2022 2023	Amount filed/ assessed Unusedamount 994,010 $ 88,720 $ 278,062 278,062 536 353 8,808 8,808 37,583 37,583 1,059,891 1,059,891	Unrecognised deferredtax assets Expiry year 88,720 $ 2024 - 2026 353 2030 8,808 2031 13,174 2032 1,059,891 2033

	December31,2022	December31,2022
Year incurred 2014 2016 2017 2018 2019 2020 2021 2022	Amount filed/ assessed Unusedamount 994,010 $ 88,720 $ 278,110 278,086 36 15 10,972 15 67,311 608 3,148 536 8,824 8,824 37,583 37,583	Unrecognised deferredtax assets Expiry year - $ 2024 24 2026 15 2027 15 2028 608 2029 536 2030 8,824 2031 13,174 2032

E. The status of the Company’s and its subsidiaries’ income tax returns which were assessed by the tax authority are as follows:

tax authority are as follows:
The Company GloryStone Golden Apple Investment Yin Wang Investment Flying horse on Maryland Pottery	Assessment
	2021 2021 2021 2021 2021 2022 established, not yet assessed

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(25) (Loss) earnings per share

(Loss) earnings per share
Basic loss per share Loss attributable to ordinary shareholders of the parent ( Basic earnings per share Profit attributable to ordinary shareholders of the parent Diluted earnings per share Profit attributable to ordinary shareholders of the parent Employees’ bonus Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares	Weighted average number of ordinary shares outstanding Loss per share Amount after tax (sharesin thousands) (indollars) 899,775) $ 802,377 1.12) ($ Weighted average number of ordinary shares outstanding Earnings per share Amount after tax (sharesin thousands) (indollars) 24,772 $ 806,460 0.03 $ 24,772 $ 806,460 - 532 24,772 $ 806,992 0.03 $ YearendedDecember31,2023 YearendedDecember31,2022
	Amount after tax ( 24,772 $ 24,772 $ - 24,772 $	Weighted average number of ordinary shares outstanding sharesin thousands) 806,460 806,460 532 806,992

(26) Supplemental cash flow information

A. Investing activities with partial cash payments

Investing activities with partial cash payments
Purchase of property, plant and equipment Add: Opening balance of payable on equipment Less: Ending balance of payable on equipment ( Cash paid during the year	2023 2022 371,178 $ 589,085 $ 114,687 99,887 70,064) 114,687) ( 415,801 $ 574,285 $ Years endedDecember31
	2023 371,178 $ 114,687 70,064) ( 415,801 $

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(27) Changes in liabilities from financing activities

For the years ended December 31, 2023 and 2022, the Group’s liabilities from financing activities included short-term borrowings, dividends payable, bonds payable, long-term borrowings and lease liabilities. The changes all pertain to changes in the financing cash flow and other non-cash changes, the aggregate amounts were as follows. Refer to statements of cash flows for other information.

	2023
Bonds payable 1,500,000 $ - - 1,500,000 $	Long-term borrowings Lease liability (Note) (Note) 2,150,543 $ 463,160 $ 105,886 39,120) ( - 8,218 2,256,429 $ 432,258 $	Liabilities from financing activities-gross
		4,113,703 $ 66,766 8,218
		4,188,687 $

At January 1 Changes in cash flow from financing activities Changes in other non-cash items At December 31	2022
	Bonds Long-term borrowings Lease liability Liabilities from financing payable (Note) (Note) activities-gross 1,500,000 $ 3,223,297 $ 300,108 $ 5,023,405 $ - 1,072,754) ( 23,668) ( 1,096,422) ( - - 186,720 186,720 1,500,000 $ 2,150,543 $ 463,160 $ 4,113,703 $

Note: Including current portion.

(28) Transactions with non-controlling interest

A. The Group and non-controlling shareholders established a subsidiary, Pottery Inc. (formerly known as Han Yu Chu Co., Ltd.) in April 2022, and non-controlling equity shareholders’ investment amount was $28,500. In addition, the Group’s subsidiary, GloryStone, paid cash dividends to non-controlling interest amounting to $15,570 in June 2022.
B. The Group’s subsidiary, GloryStone Inc., acquired 35% equity interest in Flying horse on Maryland from non-controlling interest shareholders in August 2023 at a price of $3,940.

7. Related Party Transactions

(1) Names of related parties and relationship with the Group

Names of related parties	Relationship with the Group
HannStar Display Corporation (Hannstar) Hannstar Technology Services (Shenzhen) Inc. (Hannstar Technology) Hannstar Foundation Winbond Electronics Corp. (Winbond Electronics)	Entities with significant influence to the Group Other related party Other related party Other related party

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(2) Significant related party transactions

A. Operating revenue

Operating revenue
Revenue from sales and rooms Entities with significant influence to the Group Other related party	Years endedDecember31
	2023 3,706 $ 11 3,717 $	2022
		5,085 $ 275
		5,360 $

There were no similar transactions that can be compared with. The transaction conditions were based on the mutual agreement.

B. Purchases

Purchases
Purchases of goods: Entities with significant influence to the Group	Years endedDecember31
	2023 39,533 $	2022
		21,425 $

There were no similar transactions that can be compared with. The transaction conditions were based on the mutual agreement.

C. Operating expenses

Operating expenses
Rent expense Other related party Hannstar Other related party	Years endedDecember31
	2023 2022 5,904 $ 2,389 $ Years endedDecember31	2022
		2,389 $
	2023 2022 9,950 $ 9,758 $ 68 - 10,018 $ 9,758 $

D. Rent expense

There were no similar transactions that can be compared with. The transaction conditions were based on the mutual agreement.

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E. Receivables from related parties

Payables to related parties Accounts receivable: Entities with significant influence to the Group Other related party Other receivables: Entities with significant influence to the Group Accounts payable: Entities with significant influence to the Group Other payables: Entities with significant influence to the Group	December31,2023 December31,2022 760 $ 109 $ - 8 760 $ 117 $ 143 $ - $ December31,2023 December31,2022 5,011 $ 13,058 $ 23 $ 40 $

F. Payables to related parties

G. Property transactions:

(a) Acquisition of financial assets:

Year ended December 31, 2023 No. of shares Accounts (in thousands) Objects Consideration Financial assets Windbond at fair value 1,500 Common Stock $ 33,000 Electronics through profit or loss - current

(b)Disposal of property, plant and equipment

Entities with significant influence to the Group	Years endedDecember31	Years endedDecember31
	Disposal proceeds Gain 10 $ 9 $ 2023	2022
		Disposal proceeds Gain - $ - $

H. Maintenance and proxy management fees for public areas from Hannstar for the years ended December 31, 2023 and 2022 amounted to $7,620 and $5,864, respectively.
I. The design and process development income from Hannstar for the years ended December 31, 2023 and 2022 amounted to $0 and $33,506, respectively.

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(3) Key management compensation

Key management compensation
Salaries and other short-term employee benefits	Years endedDecember31
	2023 13,063 $	2022
		27,022 $

8. Pledged Assets

The Group’s assets pledged for the purpose of long-term borrowings, notes, customs duty on raw material imports and performance bond are as follows:

ports and performance bond are as follows:
Pledgedasset Pledged time deposits (shown as other financial assets) Demand deposits (shown as other financial assets) Property, plant and equipment	Bookvalue
	December31,2023 30,005 $ 16,632 5,397,496 5,444,133 $	December31,2022
		28,919 $ 16,112 5,488,679
		5,533,710 $

9. Significant Contingent Liabilities and Unrecognised Contract Commitments

As of December 31, 2023, significant commitments and contingencies are outlined as follows:

(1) Contingencies

In November 2013, the Tainan District Prosecutors Office initiated the prosecution proceedings against the Company and the Company’s former Directors and financial managers suspected of false reporting, increasing the contract prices of construction projects, purchasing scrapped equipment, misappropriating deposits, receiving kickbacks, hollowing out the Company's assets and breach of trust under the Securities and Exchange Act, Criminal Code, Business Entity Accounting Act and Tax Collection Act and other crimes. In December 2016, the Criminal court of Tainan District Court has rendered its decision that the Company is innocent. In March 2019, the second instance court has found the other defendants guilty. However, in November 2020, the third instance court remanded certain part of the cases back to the second instance court. After a retrial by the Tainan Branch of the Taiwan High Court, the guilty verdict against the defendant was upheld in November 2023. Currently, the criminal case is pending before the Supreme Court for review. Further, the Company filed incidental civil lawsuits against other defendants suspected of the criminal case. The first instance court and the second instance court have rendered its judgment whereby the Company partly won in some of the cases. In September 2022, the Company filed appeals to the third instance, and the former incidental civil lawsuits are pending with the Supreme Court. As the construction and equipment had been derecognised from past financial statements through depreciation, impairment and loss from disposal, the above cases have no significant effect on the Company’s financial situation.

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(2) Commitments

As of December 31, 2023, the Group’s capital expenditure contracted for at the balance sheet date but not incurred amounted to $89,058.

10. Significant Disaster Loss

None.

11. Significant Events after the Balance Sheet Date

(1) Refer to Notes 6(18) and 6(23) for details.
(2) On February 27, 2024, the Company’s board of directors resolved not to proceed with the capital increase by cash through the issuance of up to 80 million shares of stock either through private placement or public offering, as resolved by the shareholders during their meeting last May 29, 2023, for the purpose of developing strategic alliances, increasing working capital, etc. However, in order for the Company to have the flexibility to respond to changes in the industry and the economy, and in line with the practice of the competent authority to review the plans of companies to raise capital, the Company’s board of directors proposed another resolution for the capital increase.
(3) For the purpose of developing strategic alliances and increasing working capital, the Company’s board of directors during its meeting on February 27, 2024 resolved to increase capital through the issuance of up to 80 million shares of stock or depository receipts with a proposed denomination of NT$10 per share through private placement or public offering.
(4) On February 27, 2024, the Board of Directors resolved the continuance of purchasing common shares of HannStar Display Corporation from the open market in batches up to a maximum of $1,200,000.

12. Others

(1) Capital management

The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to provide returns for shareholders and to maintain an optimal capital structure to reduce the cost of capital. To maintain or adjust the capital structure, the Company adjusted the capital structure through the issuance of new shares to borrow or repay loans.

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(2) Financial instruments

A. Financial instruments by category

December 31, 2023 December 31, 2022

Financial assets

Financial assets	December31,2023	December31,2022
Financial assets at fair value through profit or loss (current and non-current) Financial assets mandatorily measured at fair value through profit or loss Financial assets at fair value through other comprehensive income Designation of equity instrument Financial assets at amortised cost Cash and cash equivalents Financial assets at amortised cost (current and non-current) Accounts receivable (including related parties) Other receivables (including related parties) Other financial assets Financial liabilities Financial liabilities at amortised cost Notes payable Accounts payable (including related parties) Other payables (including related parties) Bonds payable Long-term borrowings (Note) Lease liability (Note)	517,243 $ 590,367 $ 1,831,199 $ 474,899 125,024 12,719 46,637 2,490,478 $ 424 $ 72,154 301,816 1,500,000 2,256,429 4,130,823 $ 432,258 $	319,359 $
		553,821 $
		1,814,501 $ 917,934 293,071 15,615 45,031
		3,086,152 $
		502 $ 154,427 361,681 1,500,000 2,150,543
		4,167,153 $
		463,160 $

Note: Including current portion.

B. Financial risk management policies
(a) The Group’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk, interest rate risk and price risk), credit risk and liquidity risk. To minimise any adverse effects on the financial performance of the Group, derivative financial instruments, such as foreign exchange forward contracts and foreign currency option contracts are used to hedge certain exchange rate risk.
(b) Risk management is carried out by a central treasury department (Group treasury) under policies approved by the Board of Directors. Group treasury identifies, evaluates and hedges financial risks in close cooperation with the Group’s operating units. The Board provides

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written principles for overall risk management, as well as written policies covering specific areas and matters, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity.

C. Significant financial risks and degrees of financial risks
(a) Market risk

Exchange rate risk

i. The Group operates internationally and is exposed to exchange rate risk arising from the transactions of the Company and its subsidiaries used in various functional currency, primarily with respect to the USD and JPY. Foreign exchange rate risk arises from future commercial transactions and recognised assets and liabilities.
ii. Management has set up a policy to require group companies to manage their foreign exchange risk against their functional currency. The companies are required to hedge their entire foreign exchange risk exposure with the Group treasury. Exchange rate risk is measured through a forecast of highly probable USD and JPY expenditures. Forward foreign exchange contracts are adopted to minimise the volatility of the exchange rate affecting cost of forecast inventory purchases.
iii. The Group’s businesses involve some non-functional currency operations (the Group’s functional currency: NTD). The information on assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations is as follows:

December 31,2023	December 31,2023	December 31,2023
Bookvalue (NTD) 145,143 $ 2,582 33,223 22,568	Sensitivityanalysis
	Degree of variation 1% 1% 1% 1%	Effect on profit Effect on other comprehensive or loss income 1,451 $ - $ 26 - 332 - 226 -

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December 31,2022	December 31,2022	December 31,2022
Bookvalue (NTD) 341,582 $ 18,480 32,957 48,257	Sensitivityanalysis
	Degree of Effect on profit variation or loss 1% 3,416 $ 1% 185 1% 330 1% 483	Effect on other comprehensive income
		- $ - - -

iv. Total exchange gain, including realised and unrealised, arising from significant foreign exchange variation on the monetary items held by the Group for the years ended December 31, 2023 and 2022, amounted to $8,210 and $40,227, respectively.

Price risk

i. The Group’s equity securities, which are exposed to price risk, are the held financial assets at fair value through profit or loss. To manage its price risk arising from investments in equity securities, the Group diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Group.
ii. The Group’s investments in equity securities and funds comprise shares issued by the domestic companies. The prices of equity securities would change due to the change of the future value of investee companies. If the prices of these equity securities had increased / decreased by 1% with all other variables held constant, post-tax profit for the years ended December 31, 2023 and 2022 would have increased / decreased by $5,165 and $3,194, respectively. Other components of equity would have increased / decreased by $5,904 and $5,538, respectively, as a result of other comprehensive income classified as equity investment at fair value through other comprehensive income.

Cash flow and fair value interest rate risk

The Group’s main interest rate risk arises from long-term borrowings with variable rates, which expose the Group to cash flow interest rate risk. Group policy is to maintain at least 1~3% of its borrowings at fixed rate using interest rate swaps to achieve this when necessary. During 2023 and 2022, the Group’s borrowings at variable rate were mainly denominated in New Taiwan dollars.

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(b) Credit risk

i. Credit risk refers to the risk of financial loss to the Group arising from default by the clients or counterparties of financial instruments on the contract obligations. The main factor is that counterparties could not repay in full the accounts receivable based on the agreed terms, and the contract cash flows of debt instruments stated at amortised cost, at fair value through profit or loss.
ii. The Group adopts the assumption that the default occurs when the contract payments are past due over 120 days.
iii. The Group adopts the following assumptions under IFRS 9 to assess whether there has been a significant increase in credit risk on that instrument since initial recognition:

If the contract payments were past due over 30 days based on the terms, there has been a significant increase in credit risk on that instrument since initial recognition.

iv. The following indicators are used to determine whether the credit impairment of debt instruments has occurred:
(i) It becomes probable that the issuer will enter bankruptcy or other financial reorganisation due to their financial difficulties;
(ii) The disappearance of an active market for that financial asset because of financial difficulties;

(iii) Default or delinquency in interest or principal repayments.

v. The Group wrote-off the financial assets, which cannot be reasonably expected to be recovered, after initiating recourse procedures. However, the Group will continue executing the recourse procedures to secure their rights. On December 31, 2023 and 2022, the Group had no written-off financial assets that are still under recourse procedures.
vi. The methods used by the Group in assessing the expected credit risk of accounts receivable were as follows:
(i) Individually estimated expected credit loss according to individual significant accounts receivable which are considered on default;
(ii) Other customers’ accounts receivable were classified based on the Group's credit rating standards. The Group applies different loss rate methodology and provision matrix to estimate the expected credit loss of different groups.
(iii) Loss rates are calculated based on past and current information, taking into account forward-looking information provided by the Basel Committee on Banking Supervision.

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(iv) On December 31, 2023 and 2022, the provision loss for accounts receivable which were individually estimated by loss rate methodology and provision matrix were as follows:

follows:
December31,2023 Expected loss rate Total book value December31,2022 Expected loss rate Total book value	Group1 0.03%~100% - $ Group1 0.03%~100% - $	Group2 0.03% 124,297 $ Group2 0.03% 293,044 $	Total
			124,297 $
			Total
			293,044 $

Group 1: For customers with impairment indications, individual expected credit loss is determined through considering the claim order of insurance and debts.

Group 2: Long-term customers with good credit history.

vii. Movements in relation to the Group applying the modified approach to provide loss allowance for accounts receivable are as follows:

At January 1 Reversal of impairment loss ( At December 31	2023 2022 Accountsreceivable Accountsreceivable 90 $ 100 $ 57) 10) ( 33 $ 90 $

(c) Liquidity risk

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

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ii. The table below analyses the Group’s non-derivative financial liabilities and net-settled or gross-settled derivative financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date for nonderivative financial liabilities and to the expected maturity date for derivative financial liabilities were as follows:

Non-derivative financial liabilities:

December 31, 2023 Notes payable Accounts payable (including related parties) Other payables (including related parties) Current tax liabilities Lease liability Other current liabilities Bonds payable Long-term borrowings December 31, 2022 Notes payable Accounts payable (including related parties) Other payables (including related parties) Current tax liabilities Lease liability Other current liabilities Bonds payable Long-term borrowings	Less than 1year 424 $ 72,154 301,816 191 30,044 13,402 8,010 412,290 Less than 1year 502 $ 154,427 361,681 103 30,009 6,652 8,010 208,271	Between 2 and3years - $ - - - 63,842 - 1,516,020 802,946 Between 2 and3years - $ - - - 63,039 - 16,020 628,004	Between 3 and4years - $ - - - 64,471 - - 398,188 Between 3 and4years - $ - - - 63,915 - 1,508,010 497,005	Over 5years
				- $ - - - 273,901 - - 812,089 Over 5years
				- $ - - - 306,197 - - 995,193

iii. In order to repay the borrowings, the Group plans to issue share of stocks through public offering or private placement. Refer to Note 6(16)C for details.

(3) Fair value information

A. The different levels that the inputs to valuation techniques are used to measure fair value of financial and non-financial instruments have been defined as follows:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. An active market refers to a market in which transactions for an asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. The fair value of the Group’s investment in listed stocks is included in Level 1.

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Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. The fair value of the Group’s investment in forward foreign exchange contracts is included in Level 2.
Level 3: Unobservable inputs for the asset or liability. The fair value of the Group’s investment in equity investment without active market and beneficiary certificates is included in Level 3.
B. Financial instruments not measured at fair value

Except for those listed in the table below, the carrying amounts of cash and cash equivalents, financial assets at amortised cost, accounts receivable (including related parties), other receivables (including related parties), other financial assets - current, notes payable, accounts payable (including related parties), other payables (including related parties) and lease liabilities are approximate to their fair values.

	December	31,2023
Bookvalue 1,500,000 $ 2,256,429 3,756,429 $		Fairvalue
	Level 1 - $ - - $ December	Level 2 Level3 1,307,923 $ - $ - 2,003,251 1,307,923 $ 2,003,251 $ 31,2022
Bookvalue 1,500,000 $ 2,150,543 3,650,543 $		Fairvalue
	Level 1 - $ - - $	Level 2 Level3 1,262,123 $ - $ - 1,858,726 1,262,123 $ 1,858,726 $

Note: Including current portion.

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C. Financial and non-financial instruments measured at fair value
(a) The related information on financial and non-financial instruments measured at fair value by level on the basis of the nature, characteristics and risks of the assets and liabilities at December 31, 2023 and 2022 are as follows:

December 31, 2023 Assets Recurring fair value measurements Financial assets at fair value through profit or loss Listed stocks Beneficiary certificates Unlisted stocks Non-hedging derivatives Financial assets at fair value through other comprehensive income Listed and emerging stocks December 31, 2022 Assets Recurring fair value measurements Financial assets at fair value through profit or loss Listed stocks Beneficiary certificates Unlisted stocks Non-hedging derivatives Financial assets at fair value through other comprehensive income Listed and emerging stocks	Level 1 Level 2 274,352 $ - $ - - - - - 707 590,367 - 864,719 $ 707 $ 123,121 $ - $ - - - - - 48 553,821 - 676,942 $ 48 $	Level3 Total - $ 274,352 $ 132,937 132,937 109,247 109,247 - 707 - 590,367 242,184 $ 1,107,610 $ - $ 123,121 $ 105,171 105,171 91,019 91,019 - 48 - 553,821 196,190 $ 873,180 $

(b) The methods and assumptions the Group used to measure fair value are as follows:

i. For the instruments the Group used market quoted prices as their fair values (that is, Level 1), the Group uses the closing price of the listed shares as fair value.
ii. Except for financial instruments with active markets, the fair value of other financial instruments is measured by using valuation techniques or by reference to counterparty quotes. The fair value of financial instruments measured by using valuation techniques can be referred to current fair value of instruments with similar terms and characteristics in substance, discounted cash flow method or other valuation methods, including calculated by applying model using market information available at the consolidated balance sheet date.

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iii. When assessing non-standard and low-complexity financial instruments, for example, debt instruments without active market, interest rate swap contracts, foreign exchange swap contracts and options, the Group adopts valuation technique that is widely used by market participants. The inputs used in the valuation method to measure these financial instruments are normally observable in the market.
D. On December 31, 2023 and 2022, there was no transfer between Level 1 and Level 2.
E. For the years ended December 31, 2023 and 2022, there was no transfer into or out from Level 3.
F. Finance and accounting segment is in charge of valuation procedures for fair value measurements being categorised within Level 3, which is to verify independent fair value of financial instruments. Such assessment is to ensure the valuation results are reasonable by applying independent information to make results close to current market conditions, confirming the resource of information is independent, reliable and in line with other resources and represented as the exercisable price, and frequently calibrating valuation model, performing back-testing, updating inputs used to the valuation model and making any other necessary adjustments to the fair value. The Group’s finance and accounting department use valuation methods and assumptions announced by the Financial Supervisory Commission, Securities and Futures Bureau or through outsourced appraisal performed by the external valuer to assess non-current assets held for sale.
H. The following is the qualitative information of significant unobservable inputs and sensitivity analysis of changes in significant unobservable inputs to valuation model used in Level 3 fair value measurement:

	December 31, 2023	December 31, 2023	Valuation	Significant	Range (weighted	Relationship of
		Fair value	technique	unobservable input	average)	inputs to fair value
Non-derivative equity	instrument:
Unlisted shares	$	109,247	Market	Price book ratio	0.17~5.12	The higher the multiple
			comparable	multiplier, discount		and control premium, the
			companies	for lack of		higher the fair value;
				marketability		the higher the discount for
						lack of marketability, the
						lower the fair value
Private equity		132,937	Net asset value	Not applicable	Not applicable	Not applicable
fund investment
	December 31, 2022		Valuation	Significant	Range (weighted	Relationship of
		Fair value	technique	unobservable input	average)	inputs to fair value
Non-derivative equity	instrument:
Unlisted shares	$	91,019	Market	Price book ratio	0.17~5.02	The higher the multiple
			comparable	multiplier, discount		and control premium, the
			companies	for lack of		higher the fair value;
				marketability		the higher the discount for
						lack of marketability, the
						lower the fair value
Private equity		105,171	Net asset value	Not applicable	Not applicable	Not applicable
fund investment

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13. Supplementary Disclosures

(1) Significant transactions information

A. Loans to others: Refer to table 1.
B. Provision of endorsements and guarantees to others: None.
C. Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures): Refer to table 2.
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..
E. Acquisition of real estate reaching NT$300 million or 20% of paid-in capital or more: None.
F. Disposal of real estate reaching NT$300 million or 20% of paid-in capital or more: None.
G. Purchases or sales of goods from or to related parties reaching NT$100 million or 20% of paidin capital or more: None.
H. Receivables from related parties reaching NT$100 million or 20% of paid-in capital or more: None.
I. Trading in derivative instruments undertaken during the reporting period: Refer to Notes 6(2).
J. Significant inter-company transactions during the reporting periods: None.

(2) Information on investees

Names, locations and other information of investee companies (not including investees in Mainland China): Refer to table 3.

(3) Information on investments in Mainland China

A. Basic information: Refer to table 4.
B. Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland Area: None.

(4) Major shareholders information

Major shareholders information: Refer to Table 5.

14. Segment Information

(1) General information

Management has determined the reportable operating segments based on the reports reviewed by the Board of Directors that are used to make strategic decisions.

(2) Measurement of segment information

The Group measures operating segment revenue and net operating profit or loss, and the Company has eliminated the impact of inter-segment transactions.

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(3) Measurement of segment information

The segment information provided to the chief operating decision-maker for the reportable segments is as follows:

Year ended December 31, 2023

	YearendedDecember31,2023	YearendedDecember31,2023
Manufacturing of touch production Revenue from external customers 1,080,347 $ Inter-segment revenue - Total segment revenue 1,080,347 $ Segment operating income (loss) 1,070,081) ($ ( Segment operating income (loss), including: Depreciation and amortisation 874,336 $ Manufacturing of touch production Revenue from external customers 2,098,527 $ Inter-segment revenue - Total segment revenue 2,098,527 $ Segment operating income (loss) 174,484) ($ Segment operating income (loss), including: Depreciation and amortisation 806,684 $	Adjustment and Hotelbusiness Others write-offs Total 168,780 $ 82,699 $ - $ 1,331,826 $ 1,069 96,050 97,119) ( - 169,849 $ 178,749 $ 97,119) ($ 1,331,826 $ 72,289) $ 90,231 $ 13,501) ($ 1,065,640) ($ 125,166 $ 38,763 $ 69,231) ($ 969,034 $ Adjustment and Hotelbusiness Others write-offs Total 235,439 $ 71,997 $ - $ 2,405,963 $ 1,253 89,330 90,583) ( - 236,692 $ 161,327 $ 90,583) ($ 2,405,963 $ 12,605 $ 73,584 $ 8,449) ($ 96,744) ($ 116,840 $ 38,027 $ 68,474) ($ 893,077 $ YearendedDecember31,2022
	Hotelbusiness 235,439 $ 1,253 236,692 $ 12,605 $ 116,840 $	Others 71,997 $ 89,330 ( 161,327 $ ( 73,584 $ ( 38,027 $ (

(4) Reconciliation for segment income (loss)

Sales between segments are carried out at arm’s length. The revenue from external customers reported to the chief operating decision-maker is measured in a manner consistent with that in the statement of comprehensive income.

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A reconciliation of reportable segment income or loss to the income / (loss) before tax from continuing operations for the years ended December 31, 2023 and 2022 is provided as follows:

continuing operations for the years ended December 31, 2023 and 2022 is provided as follows:	continuing operations for the years ended December 31, 2023 and 2022 is provided as follows:	ber 31, 2023 and 2022 is provided as follows:	ber 31, 2023 and 2022 is provided as follows:	ber 31, 2023 and 2022 is provided as follows:
Geographical information 2023 2022 Reportable segments income / (loss) 1,142,370) ($ 161,879) ($ Other segments income / (loss) 76,730 65,135 Total segments 1,065,640) ( 96,744) ( Non-operating income and expenses 118,074 110,982 (Loss) income before tax from continuing operations 947,566) ($ 14,238 $ Years endedDecember31 Non-current Non-current Revenue assets Revenue assets China 627,717 $ - $ 939,013 $ - $ South Korea 347,446 - 1,130,362 - Taiwan 351,525 10,162,334 334,527 10,762,960 Europe 5,138 - 2,061 - 1,331,826 $ 10,162,334 $ 2,405,963 $ 10,762,960 $ Years endedDecember31 2023 2022		Years endedDecember31
				2022
				14,238 $

China South Korea Taiwan Europe
	Non-current Revenue assets 627,717 $ - $ 347,446 - 351,525 10,162,334 5,138 - 1,331,826 $ 10,162,334 $ 2023			2022
			Revenue

(5) Geographical information

(6) Major customer information

A B	Years endedDecember31	Years endedDecember31
	Revenue Location 372,605 $ China 347,446 South Korea 2023	2022
		Revenue Location 620,062 $ China 1,128,983 South Korea

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HannsTouch Holdings Company

(Formerly HannsTouch Solution Incorporated) and Subsidiaries

Loans to others

Year ended December 31, 2023

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

Table 1

No. （Note 1）	Creditor	Borrower	General ledger account （Note 2）	Is a related party	Maximum outstanding balance during the year ended December 31, 2023 （Note 3）	Balance at December 31, 2023 （Note 4）	Actual amount drawn down	Interest rate	Nature of loan	Amount of transactions with the borrower	Reason for short-term financing	Allowance for doubtful accounts	Collateral	Collateral	Limit on loans granted to a single party （Note 5,6）	Ceiling on total loans granted （Note 7）	Note
													Item	Value
0 1 1	HannsTouch Holdings Company Guangdong Shekel Technology Co., Ltd. (formerly known as: HeXin Shang Mao) Guangdong Shekel Technology Co., Ltd. (formerly known as: HeXin Shang Mao)	GloryStone Inc. Shanghai Yesun Electronic Science& Technology Co., Ltd. Guangzhou Zeya Technology Co., Ltd.	Other receivables due from related parties Other receivables Other receivables	Yes No No	200,000 $ 6,906 2,530	200,000 $ - -	$ - 6,906 2,530	Undetermined 10.40%~11.89% 11.52%~12.09%	Necessary for short- term financing Business transaction Business transaction	$ - 7,206 2,673	Increase working capital - -	$ - - -	None None None	$ - - -	1,774,144 $ 7,206 2,673	2,661,216 $ 7,036 7,036	Note 6 Note 5, 7, 8, 9, 11 Note 5, 7, 8, 10, 11

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

(1)The Company is ‘0’.
(2)The subsidiaries are numbered in order starting from ‘1’.

Note 2: Fill in the name of account in which the loans are recognised, such as receivables–related parties, current account with stockholders, prepayments, temporary payments, etc.

Note 3: The upper limit of capital loan and balance of capital loans in the end of the year are the amount approved by the Board of Directors.

Note 4: The year-end balance is the remaining valid quota/amount of fund loans to others as of the end of the period.

Note 5: For HannsTouch Holdings Company and its subsidiaries, the limit of fund loans to individual entities with business transactions shall not exceed the business transaction amount of the previous six months, with the higher of the purchase or sales amount being the criterion for "business transaction amount".

Note 6: The limit of HannsTouch Holdings Company and its subsidiaries loans to individual who has the needs of short-term financing shall not exceed 20% of the net asset value of latest financial statements.

Note 7: The total loans amount of HannsTouch Holdings Company or its subsidiaries shall not exceed 30% of net asset value.

Note 8: HeXin Shang Mao completed the registration of its name change in October 2023 and is now named as "Guangdong Shekel Technology Co., Ltd.".

Note 9: The fund loans from Shanghai Yesun Electronic Science& Technology Co., Ltd. have been fully repaid by its related party, Keeten Technology Co., Ltd., from September, 2023 to November, 2023, so the year-end balance is 0.

Note 10: The fund loans from Guangzhou ZeYa Electronic Technology Co., Ltd. have been fully repaid by its related party, Guangxi Guancheng Electronic Co., Ltd., in November 2023, so the year-end balance is 0.

Note 11: HannsTouch Holdings Company has approved, through the board of directors, the fund loan case for business transactions retrospectively by its subsidiary, Guangdong Shekel Technology Co., Ltd. on January 22, 2024.

Table 1

Table 2

HannsTouch Holdings Company

(Formerly HannsTouch Solution Incorporated) and Subsidiaries

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

December 31, 2023

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS, EXCEPT AS OTHERWISE INDICATED)

Securities held by	Marketable securities	Relationship with the securities issuer	General ledger account		Ending	Balance
				Number of shares (in thousands)	Book value	Ownership (%)	Fair value (Note)
HannsTouch Holdings Company Golden Apple Investment Corporation GloryStone Inc.	Stock HIM International Music Inc. Union Bank of Taiwan Preferred Stock A Banyan Tree Holding Limited Fullerton Technology Co., Ltd. Farglory Land Development Co., Ltd. Winstek Semiconductor Technology Co., Ltd. Materials Analysis Technology Inc. Super Micro Computer, Inc. Winbond Electronics Corp. YH Bio Co., Ltd. Touch Cloud Inc Nfore Technology Co., Ltd. BORETECH Resource Recovery Engineering Co., Ltd. Strong-Wave Radio Technology Inc. Hannstar Display Corp. Bonds NISSAN MOTOR Co., Ltd. FINA FINANCE & TRADING Co., Ltd. Benefit certificate Lian Ding Capital Co., Ltd. Grandfull Convergence Innovation Growth Fund, L.P..C. Cypress Venture Capital III Ltd. Stock Chaiin Hotel Co., Ltd. Stock Farglory Land Development Co., Ltd. Materials Analysis Technology Inc. Bonds FINA FINANCE & TRADING Co., Ltd.	None `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` Other related parties None `〞` None `〞` `〞` None None `〞` None	Financial assets at fair value through profit or loss - current `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` Financial assets at fair value through profit or loss - non-current `〞` `〞` Financial assets at fair value through other comprehensive income- non-current Financial assets at amortised cost – non-current `〞` Financial assets at fair value through profit or loss - non-current `〞` `〞` Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at amortised cost – non-current	211 141 3,614 4,000 165 276 112 2 1,500 6,973 250 1,000 425 3,333 49,820 Not applicable Not applicable Not applicable Not applicable Not applicable 2,100 58 6 Not applicable	22,472 $ 7,229 29,038 89,800 9,372 25,199 26,040 14,838 45,675 7,904 1,531	0.40% Not applicable 0.42% 3.46% 0.02% 0.20% 0.01% 3.21% 0.04% 3.40% 1.88% 2.86% 0.65% 10.38% 1.69% Not applicable Not applicable Not applicable Not applicable Not applicable 19.00% 0.007% 0.009% Not applicable	22,472 $ 7,229 29,038 89,800 9,372 25,199 26,040 14,838 45,675 7,904 1,531 51,138 $ 26,175 9,040 590,367 $ 37,461 $ 50,000 70,936 $ 41,001 21,000 13,459 $ 3,294 $ 1,395 50,000 $
					279,098 $
					51,138 $ 26,175 9,040
					86,353 $
					590,367 $
					37,461 $ 50,000
					86,934 $
					70,936 $ 41,001 21,000
					132,937 $
					13,459 $
					3,294 $ 1,395
					4,689 $
					50,000 $

Note: Fill in the amount after adjusted at fair value and deducted by accumulated impairment for the marketable securities measured at fair value; fill in the acquisition cost or amortised cost deducted by accumulated impairment for the marketable securities not measured at fair value.

Table 2

Table 3

HannsTouch Holdings Company

(Formerly HannsTouch Solution Incorporated) and Subsidiaries

Information on investees

Year ended December 31, 2023

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS, EXCEPT AS OTHERWISE INDICATED)

Investor	Investee `（`Notes 1 and 2`）`	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held as at December31,2023	Shares held as at December31,2023	Shares held as at December31,2023	Net profit (loss) of the investee for the year ended December 31,2023	Investment income (loss) recognised by the Company for the year ended December31,2023	Note
				Balance as at December31,2023	Balance as at December31,2022	Number of shares	Ownership (%)	Bookvalue
HannsTouch Holdings Company `〞` `〞` `〞` `〞` GloryStone Inc. `〞` Yin Wang Investment Corporation Pottery Inc. (formerly known as Han Yu Chu Co., Ltd.)	Richest Investment Ltd. Golden Apple Investment Corporation GloryStone Inc. Yin Wang Investment Corporation Hanns Blegrain Ltd. Flying horse on Maryland Inc. Pottery Inc. (formerly known as Han Yu Chu Co., Ltd.) Pottery Inc. (formerly known as Han Yu Chu Co., Ltd.) Flying horse on Maryland Inc.	Cayman Islands Taiwan Taiwan Taiwan Cayman Islands Taiwan Taiwan Taiwan Taiwan	Investment Investment Hotel business Investment Investment Food service Food service Food service Food service	148,434 $ 150,000 406,582 150,000 30,695 - 76,500 45,000 9,411	148,434 $ 150,000 406,582 150,000 30,695 10,200 76,500 45,000 -	4,500 15,000 33,000 15,000 1,000 - 7,650 4,500 1,720	100.00 100.00 42.31 100.00 100.00 - 51.00 30.00 86.00	- $ 126,312 424,828 144,268 24,854 101 64,517 37,951 8,834	- $ 4,867 78,889) ( 5,203) ( 5,048) ( 4,917) ( 19,894) ( 19,894) ( 4,917) (	- $ 4,867 32,906) ( 4,914) ( 5,048) ( 2,186) ( 10,146) ( 5,968) ( 577) (	Note 1 `〞` `〞` `〞` `〞` Note 2 `〞` `〞`

Note 1: The Company’s subsidiary. Note 2: The Company’s second tier subsidiary.

Table 3

HannsTouch Holdings Company

(Formerly HannsTouch Solution Incorporated) and Subsidiaries

Information on investments in Mainland China

Year ended December 31, 2023

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS, EXCEPT AS OTHERWISE INDICATED)

Table 4

Accumulated Amount remitted from Taiwan Accumulated Accumulated amount of to Mainland China/ amount Ownership Investment income amount remittance from Amount remitted back of remittance held by (loss) recognised Book value of of investment Taiwan to to Taiwan for the year from Taiwan to Net income of the by the Company investments in income Mainland China ended December 31, 2023 Mainland China investee for Company for the year Mainland China remitted back to Investee in Main business Paid-in capital Investment as of January 1, Remitted to Remitted back as of December 31, the year ended (direct or ended December as of December 31, Taiwan as of Mainland China activities （ Note 1 ） method 2023 Mainland China to Taiwan 2023 December 31, 2023 indirect) 31, 2023 2023(Note 3) December 31, 2023 Note NanJin GuanXin Co. Development and $ 469,950 Note 2 $ 148,434 $ - $ - $ 148,434 $ - 31.12 $ - $ - $ - Note 4 Ltd. production of PMMA, light guide plate and related components Guangdong Shekel Provision of 29,160 Note 3 29,160 - - 29,160 (4,915) 100.00 (4,915) 23,451 - Note 6 Technology Co., Ltd. technical services (formerly known as: HeXin Shang Mao)

Accumulated amount of Investment amount approved by the remittance from Taiwan to Investment Commission of the Ministry of Ceiling on investments in Mainland China Company name Mainland China (Note 5) Economic Affairs (MOEA) imposed by the Investment Commission of MOEA HannsTouch Solution Incorporated $ 1,819,109 $ 1,819,109 $ 5,657,851

Note 1: Translated from historical exchange rate. Note 2: Reinvested through Richest Investment Ltd.

Note 3: Reinvested through Hanns Blegrain Ltd.

Note 4: In 2013, the Company’s investment in NanJin GuanXin Co. Ltd. has been reduced to $0. The cancellation of registration was completed in 2023. Additionally, it was submitted for review by the Investment Commision of the Ministry of Economic Affairs in January, 2024.

Note 5: NTD amount was translated from historical exchange rate of actual remittance.

Note 6: HeXin Shang Mao completed the registration of its name change in October 2023 and is now named as "Guangdong Shekel Technology Co., Ltd.".

Table 4

HannsTouch Holdings Company

(Formerly HannsTouch Solution Incorporated) and Subsidiaries

Major shareholders information December 31, 2023

Table 5

Name of major shareholders	Shares	Shares
	Number of shares held(shares in thousands)	Ownership (%)
Hannstar Display Corp. Huali Investment Corp.	214,639 59,440	26.76% 7.41%

Table 5

AI assistant

HannsTouch — Audit Report / Information 2023

52281_rns_2023-11-01_a3c98f5b-6617-4c0c-b02b-ec70b2fdc557.pdf

HANNSTOUCH HOLDINGS COMPANY (FORMERLY HANNSTOUCH SOLUTION INCORPORATED) AND SUBSIDIARIES

INDEPENDENT AUDITORS’ REPORT TRANSLATED FROM CHINESE

Opinion

Basis for opinion

Key audit matters

Key audit matters - Impairment assessment on property, plant and equipment

Description

How our audit addressed the matter:

Other matter – Parent company only financial reports

Responsibilities of management and those charged with governance for the consolidated financial statements

Auditors’ responsibilities for the audit of the consolidated financial statements

HANNSTOUCH HOLDINGS COMPANY

(FORMERLY HANNSTOUCH SOLUTION INCORPORATED) AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

DECEMBER 31, 2023 AND 2022

HANNSTOUCH HOLDINGS COMPANY

(FORMERLY HANNSTOUCH SOLUTION INCORPORATED) AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

DECEMBER 31, 2023 AND 2022

HANNSTOUCH HOLDINGS COMPANY

(FORMERLY HANNSTOUCH SOLUTION INCORPORATED) AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME YEARS ENDED DECEMBER 31, 2023 AND 2022

HANNSTOUCH HOLDINGS COMPANY

(FORMERLY HANNSTOUCH SOLUTION INCORPORATED) AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY YEARS ENDED DECEMBER 31, 2023 AND 2022

HANNSTOUCH HOLDINGS COMPANY

(FORMERLY HANNSTOUCH SOLUTION INCORPORATED) AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2023 AND 2022

HANNSTOUCH HOLDINGS COMPANY

(FORMERLY HANNSTOUCH SOLUTION INCORPORATED) AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2023 AND 2022

HANNSTOUCH HOLDINGS COMPANY AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED DECEMBER 31, 2023 AND 2022

1. History and Organisation

3. Application of New Standards, Amendments and Interpretations

but not yet adopted by the Group

(3) IFRS Accounting Standards issued by IASB but not yet endorsed by the FSC

4. Summary of Material Accounting Policies

(1) Compliance statement

(2) Basis of preparation

(3) Basis of consolidation

Statements of comprehensive income

GloryStone

(4) Foreign currency translation

(5) Classification of current and non-current items

(6) Cash equivalents

(7) Financial assets at fair value through profit or loss

(8) Financial assets at fair value through other comprehensive income

(9) Financial assets at amortised cost

(10) Accounts receivable

(11) Impairment of financial assets

(12) Derecognition of financial assets

－ (13) Leasing arrangements (lessor) operating leases

(14) Inventories

(15) Property, plant and equipment

(16) Leasing arrangements (lessee) － right-of-use assets / lease liabilities

(17) Intangible assets

(18) Impairment of non-financial assets

(19) Borrowings

(20) Notes and accounts payable

(21) Bonds payable

(22) Derecognition of financial liabilities

(23) Non-hedging derivatives

(24) Provisions

(25) Employee benefits

(b) Defined benefit plan

- (26) Employee share based payment

(27) Income taxes

(28) Share capital

(29) Dividends

(30) Revenue recognition

A. Sales of goods

B. Leases

(31) Government grants

(32) Operating segments

5. Critical Accounting Judgements, Estimates and Key Sources of Assumption Uncertainty

(1) Critical judgements in applying the Group’s accounting policies

None.

(2) Critical accounting estimates and assumptions

6. Details of Significant Accounts

(1) Cash and cash equivalents

(2) Financial assets at fair value through profit or loss

HannsTouch Audit Report / Information 2023