HannsTouch — Audit Report / Information 2023

Nov 1, 2023

HANNSTOUCH HOLDINGS COMPANY(FORMERLY HANNSTOUCH SOLUTION INCORPORATED)

PARENT COMPANY ONLY FINANCIAL

STATEMENTS AND INDEPENDENT AUDITORS’

REPORT

DECEMBER 31, 2023 AND 2022

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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 parent company only balance sheets as of HannsTouch Holdings Company (formerly known as HannsTouch Solution Incorporated) as at December 31, 2023 and 2022, and the related parent company only statements of comprehensive income, of changes in equity and of cash flows for the years then ended, and notes to the parent company only financial statements, including a summary of material accounting policies.

In our opinion, the accompanying parent company only financial statements present fairly, in all material respects, the financial position of HannsTouch Holdings Company as at December 31, 2023 and 2022, and its financial performance and its cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for opinion

We conducted our audits in accordance with the Regulations Governing 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 parent company only financial statements section of our report. We are independent of HannsTouch Holdings Company 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 HannsTouch Holdings Company’s 2023 parent company only financial statements. These matters were addressed in the context of our audit of the parent company only financial statements as a whole and, in forming our opinion thereon, we do not provide a separate opinion on these matters.

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Key audit matter for HannsTouch Holdings Company’s 2023 parent company only financial statements are stated as follows:

Key audit matters - Impairment assessment on investment property

Description

Refer to Notes 4(17), 5(2) and 6(12) for accounting policy applied on impairment of investment property, accounting estimates and assumptions applied on the impairment assessment of tangible assets and details of impairment.

HannsTouch Holdings Company has appointed appraisers to appraise the investment property in Taipei and to determine the recoverable amount as the basis for assessing the impairment of investment property.

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 investment property 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:

1. Assessed the appointed appraisers and appraisals office in conformity with the rules of qualification and independence.

2. Assessed the expected future income used in the experts’ appraisal report and compared with local market price and forecast documents for the industry.

3. 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.

4. Examined the parameters of valuation model in the experts’ appraisal report and setting of formulas.

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

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

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

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

Auditors’ responsibilities for the audit of the parent company only financial statements

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

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

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

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1. 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 HannsTouch Holdings Company’s internal control.

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

3. 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 HannsTouch Holdings Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the parent company only financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause HannsTouch Holdings Company to cease to continue as a going concern.

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

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

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

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

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From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the parent company only financial statements of the current period and are therefore the key audit matters. We describe these matters in our 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 For and on Behalf of PricewaterhouseCoopers, Taiwan February 27, 2024

[Liao, Fu-Ming ]

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

As the 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) PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2023 AND 2022

(Expressed in thousands of New Taiwan dollars)

Assets	Notes 6(1) 6(2) 6(5) 7 7 6(6) 6(7) and 8 7 6(2) 6(3) 6(4) 6(8) 6(9), 7 and 8 6(10) 6(12) and 8 6(26)	December 31, 2023 AMOUNT % $ 1,263,828 10 279,805 2 119,333 1 55,427 1 11,432 - 1,310 - 130,360 1 46,146 - 40,055 - 1,947,696 15 219,290 2 590,367 4 87,461 1 720,262 5 3,652,294 27 266,825 2 5,690,258 43 18,952 - 87,639 1 841 - 11,334,189 85 $ 13,281,885 100	December 31, 2022	December 31, 2022
		AMOUNT $ 1,263,828 279,805 119,333 55,427 11,432 1,310 130,360 46,146 40,055 1,947,696 219,290 590,367 87,461 720,262 3,652,294 266,825 5,690,258 18,952 87,639 841 11,334,189 $ 13,281,885	AMOUNT $ 1,592,078 131,964 289,569 54,018 11,258 443 171,348 44,981 31,550 2,327,209 177,958 553,821 86,934 759,075 4,182,984 284,271 5,727,331 22,954 111,351 701 11,907,380 $ 14,234,589	%
Current assets 1100 Cash and cash equivalents 1110 Financial assets at fair value through profit or loss - current 1170 Accounts receivable, net 1180 Accounts receivable due from related parties, net 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 1550 Investments accounted for under equity method 1600 Property, plant and equipment 1755 Right-of-use assets 1760 Investment property - net 1780 Intangible assets 1840 Deferred income tax assets 1900 Other non-current assets 15XX Total non-current assets 1XXX Total assets				11 1 2 1 - - 1 - -
				16
				1 4 1 5 30 2 40 - 1 -
				84
				100

(Continued)

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HANNSTOUCH HOLDINGS COMPANY (FORMERLY HANNSTOUCH SOLUTION INCORPORATED) PARENT COMPANY ONLY 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 - 63,843 - 139,010 1 7 5,011 - 13,058 - 6(13) 276,225 2 348,736 3 7 464 - 247 - 15,122 - 15,049 - 6(15) 372,010 3 172,754 1 9,031 - 3,735 - 742,130 5 693,091 5 6(14) 1,500,000 12 1,500,000 10 6(15) and 8 1,884,419 14 1,977,789 14 6(26) 1,131 - - - 262,944 2 278,162 2 20,541 - 18,693 - 3,669,035 28 3,774,644 26 4,411,165 33 4,467,735 31 6(18) 8,020,105 60 8,069,485 57 6(19) 313,740 2 312,925 2 6(20) 246,879 2 244,402 2 90,461 1 - - 256,054 2 1,248,767 9 ( 56,519) - ( 90,461 ) ( 1) 6(18) - - ( 18,264 ) - 8,870,720 67 9,766,854 69 9 11 $ 13,281,885 100 $ 14,234,589 100

Current liabilities 2150 Notes payable 2170 Accounts payable 2180 Accounts payable - related parties 2200 Other payables 2220 Other payables - related parties 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 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 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 parent company only financial statements.

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HANNSTOUCH HOLDINGS COMPANY (FORMERLY HANNSTOUCH SOLUTION INCORPORATED) PARENT COMPANY ONLY 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(21) and 7 $ 1,253,509 100 $ 2,255,129 100 6(6)(25) and 7 ( 2,061,191) ( 165) ( 2,179,720) ( 97) ( 807,682) ( 65) 75,409 3 6(25) and 7 ( 25,535) ( 2) ( 25,323) ( 1) ( 112,227) ( 9) ( 112,610) ( 5) ( 27,916) ( 2) ( 32,765) ( 1) 12(2) 57 - 10 - ( 165,621) ( 13) ( 170,688) ( 7) ( 973,303) ( 78) ( 95,279) ( 4) 6(22) 21,039 2 11,570 - 6(23) 43,593 4 114,056 5 6(24) and 7 106,054 8 19,204 1 7 ( 59,158) ( 5) ( 49,502) ( 2) 6(8) ( 38,001) ( 3) 7,760 - 73,527 6 103,088 4 ( 899,776) ( 72) 7,809 - 6(26) 1 - 16,963 1 ($ 899,775) ( 72) $ 24,772 1 6(3) $ 34,754 3 ($ 308,237) ( 14) 6(8) ( 812) - 20 - $ 33,942 3 ($ 308,217) ( 14) ($ 865,833) ( 69) ($ 283,445) ( 13) 6(27) ($ 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 loss 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 7070 Share of profit or loss of associates and joint ventures accounted for using equity method, net 7000 Total non-operating income and expenses 7900 (Loss) profit before income tax 7950 Income tax benefit 8200 (Loss) profit for the year Other comprehensive income 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) 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 parent company only financial statements.

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HANNSTOUCH HOLDINGS COMPANY (FORMERLY HANNSTOUCH SOLUTION INCORPORATED) PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY YEARS ENDED DECEMBER 31, 2023 AND 2022

(Expressed in thousands of New Taiwan dollars)

Year ended December 31, 2022 Balance at January 1, 2022 Profit for the year Other comprehensive income (loss) Total comprehensive income (loss) Appropriations of 2021 earnings: Legal reserve Special reserve Cash dividends Purchase of treasury stock Balance at December 31, 2022 Year ended December 31, 2023 Balance at January 1, 2023 Loss for the year Other comprehensive income (loss) Total comprehensive income (loss) Appropriations of 2022 earnings: Legal reserve Special reserve Purchase of treasury stock Share-based payments Employee share purchase plan Cancellation of treasury stock Balance at December 31, 2023	Notes		Share capital - common stock			Capital Reserves						Retained Earnings			Other EquityInterest	Other EquityInterest	Other EquityInterest		Treasury stock		Total equity
				Total capital surplus, additional paid-in capital		Capital Surplus, changes in ownership interests in subsidiaries		Capital surplus, others		Legal reserve		Special reserve		Unappropriated retained earnings	Financial statements translation differences of foreign operations		Unrealised gains (losses) from financial assets measured at fair value through other comprehensive income
	6(20) 6(18) 6(20) 6(18) 6(18)	$ 8,069,485 - - - - - - - $ 8,069,485 $ 8,069,485 - - - - - - - - ( 49,380 ) $ 8,020,105		$ 309,035 - - - - - - - $ 309,035 $ 309,035 - - - - - - - - ( 1,891 ) $ 307,144		$ 919 - - - - - - - $ 919 $ 919 - - - - - - - - - $ 919	$ 2,971 - - - - - - - $ 2,971 $ 2,971 - - - - - - 207 ( 1 ) 2,500 $ 5,677			$ 144,361 - - - 100,041 - - - $ 244,402 $ 244,402 - - - 2,477 - - - - - $ 246,879	$ 6,457 - - - - ( 6,457 ) - - $ - $ - - - - - 90,461 - - - - $ 90,461		$ 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 )	$ 217,756 - ( 308,237 ) ( 308,237 ) - - - - ($ 90,481 ) ($ 90,481 ) - 34,754 34,754 - - - - - - ($ 55,727 )		$ - - - - - - - ( 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

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

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HANNSTOUCH HOLDINGS COMPANY

(FORMERLY HANNSTOUCH SOLUTION INCORPORATED) PARENT COMPANY ONLY 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) Depreciation Expected credit gain on doubtful accounts Amortisation Interest expense Interest income Dividend income Share-based payments cost (Gain) loss on financial assets at fair value through profit or loss Share of profit or loss of associates and joint ventures accounted for under equity method Gain on disposals of property, plant and equipment Gain on lease modification Changes in operating assets and liabilities Changes in operating assets Financial assets at fair value through profit or loss 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 inflow generated from operations Interest received Dividends received Interest paid Income taxes refund received (paid) Net cash flows from operating activities

Year ended December 31 Notes 2023 2022 ($ 899,776 ) $ 7,809 6(25) 903,188 834,830 12(2) ( 57 ) ( 10 ) 6(25) 9,778 9,786 59,158 49,502 6(22) ( 21,039 ) ( 11,570 ) 6(23) ( 9,094 ) ( 52,972 ) 6(17) 229 - 6(2)(24) ( 96,174 ) 21,048 6(8) 38,001 ( 7,760 ) 6(24) ( 2,282 ) - 6(24) ( 3 ) - ( 85,904 ) ( 94,384 ) 170,293 30,719 ( 1,409 ) ( 1,170 ) 3,796 ( 8,957 ) ( 867 ) 1,842 40,988 31,900 ( 7,144 ) ( 1,388 ) ( 78 ) ( 1,201 ) ( 75,167 ) ( 19,042 ) ( 8,047 ) 13,058 ( 17,253 ) ( 46,359 ) 217 ( 903 ) 5,296 ( 34,337 ) 1,848 2,365 8,498 722,806 20,633 11,442 9,094 64,390 ( 52,734 ) ( 43,253 ) 19,920 ( 25,503 ) 5,411 729,882

(Continued)

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HANNSTOUCH HOLDINGS COMPANY

(FORMERLY HANNSTOUCH SOLUTION INCORPORATED) PARENT COMPANY ONLY 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 financial instruments at fair value through profit or loss Acquisition of non-current 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 investments accounted for under equity method Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Acquisition of intangible assets Acquisition of investment property Increase in other current financial assets Increase in other non-current assets Net cash flows (used in) from investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from long-term debt Repayment of long-term debt Repayment of lease liabilities Exercise of employee stock options Cash dividends paid Payments to acquire treasury shares Net cash flows from (used in) financing activities Net (decrease) increase 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 ($ 7,095 ) ($ 75,598 ) ( 1,792 ) ( 83,921 ) - 1,571,000 ( 527 ) ( 86,934 ) 6(8) - ( 30,695 ) 6(28) ( 381,101 ) ( 561,883 ) 11,416 - ( 5,776 ) ( 17,815 ) 6(28) ( 1,491 ) ( 3,613 ) ( 1,165 ) ( 24 ) ( 140 ) ( 132 ) ( 387,671 ) 710,385 6(29) 281,140 - 6(29) ( 175,254 ) ( 1,072,754 ) 6(29) ( 21,346 ) ( 21,378 ) 7,208 - 6(20) - ( 282,432 ) 6(18) ( 37,738 ) ( 18,264 ) 54,010 ( 1,394,828 ) ( 328,250 ) 45,439 6(1) 1,592,078 1,546,639 6(1) $ 1,263,828 $ 1,592,078

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

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HANNSTOUCH HOLDINGS COMPANY

(FORMERLY HANNSTOUCH SOLUTION INCORPORATED) NOTES TO THE PARENT COMPANY ONLY 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 is primarily engaged in the manufacture and sales of touch products and lease of property. The common shares of the Company have been listed on the Taiwan Stock Exchange since September 27, 2002.

1. 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:

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 Company’s financial condition and financial performance based on the Company’s assessment.

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

but not yet adopted by the Company

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

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 Company’s financial condition and financial performance based on the Company’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:

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

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

4. Summary of Material Accounting Policies

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

(1) Compliance statement

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

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(2) Basis of preparation

• A. Except for the following items, the parent company only 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 the International Financial Reporting Standards, International Accounting Standards, IFRIC[®] Interpretations, and SIC[®] Interpretations as endorsed by the FSC (collectively referred herein as the “IFRSs”) requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Company 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 parent company only statements are disclosed in Note 5.

(3) Foreign currency translation

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

Foreign currency transactions and balances

• (a) Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions are 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.

• (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’.

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(4) Classification of current and non-current items

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

• (a) Assets arising from operating activities that are expected to be 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;

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

(5) Cash equivalents

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

(6) 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 Company measures the financial assets at fair value and recognises the transaction costs in profit or loss. The Company subsequently measures the financial assets at fair value, and recognises the gain or loss in profit or loss.

~16~

• D. The Company recognises the dividend income when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Company and the amount of the dividend can be measured reliably.

(7) 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 Company has made an irrevocable election at initial recognition to recognise changes in fair value in other comprehensive income:

• (a) The objective of the Company’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 Company measures the financial assets at fair value plus transaction costs. The Company 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 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 Company and the amount of the dividend can be measured reliably.

(8) 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 Company’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 Company 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 Company’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.

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(9) Accounts receivable

• A. Accounts receivable entitle the Company 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.

(10) Impairment of financial assets

For financial assets at amortised cost including accounts receivable, at each reporting date, the Company 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 that do not contain a significant financing component, the Company recognises the impairment provision for lifetime ECLs.

(11) Derecognition of financial assets

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

－ (12) 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.

(13) 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.

(14) Investments accounted for using equity method

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

~18~

• B. Unrealised gains on transactions between the Company and its subsidiaries are eliminated. Accounting policies of subsidiaries have been adjusted where necessary to ensure consistency with the policies adopted by the Company.

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

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

(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 Company 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 2~10 years Furniture and fixtures 2~6 years Other equipments 2~6 years

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(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 Company. For short-term leases or leases of low-value 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 Company 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 and remeasure the lease liability to reflect the partial or full termination of the lease, and recognise the difference in profit or loss.

(17) Investment property

An investment property is stated initially at its cost and measured subsequently using the cost model. Except for land, investment property is depreciated on a straight-line basis over its estimated useful life of 25 years.

(18) 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.

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(19) Impairment of non-financial assets

The Company assesses at each balance sheet date the recoverable amounts of those assets where there is an indication that they are impaired. An impairment loss is 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.

(20) Borrowings

• A. Borrowings comprise long-term bank borrowings. 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.

(21) 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.

(22) Bonds payable

Ordinary corporate bonds issued by the Company are initially recognised at fair value less transaction costs. Any difference between the proceeds (net of transaction costs) and the redemption value is presented as an addition to or deduction from bonds payable, which is amortised to profit or loss over the period of bond circulation using the effective interest method as an adjustment to ‘finance costs’.

(23) Derecognition of financial liabilities

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

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(24) 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.

(25) Provisions

Provisions are recognised when the Company 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.

(26) 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.

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• 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.

- (27) 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.

(28) 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. 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 parent company only balance sheet. Deferred tax is determined using tax rates 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.

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(29) Share capital

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

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

(30) Dividends

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

(31) Revenue recognition

• A. Sales of goods

• (a) The Company 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 Company 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.

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B. Leases

The Company 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.

(32) Government grants

Government grants are recognised at their fair value only when there is reasonable assurance that the Company 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 Company recognises expenses for the related costs for which the grants are intended to compensate.

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

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

Investment property

The Company uses a portion of the property for its own use and another portion to earn rentals or for capital appreciation. When these portions cannot be sold separately and cannot be leased out separately under a finance lease, the property is classified as investment property only if the own-use portion accounts for the immaterial property.

(2) Critical accounting estimates and assumptions

• A. Impairment assessment of tangible assets

• The Company 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. Any changes of economic circumstances or estimates due to the change of company 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

~25~

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 at December 31, 2023, the Company recognised deferred tax assets amounting to $ 87,639.

6. Details of Significant Accounts

(1) Cash and cash equivalents

tails of Significant Accounts Cash and cash equivalents
Cash on hand and revolving funds Checking accounts and demand deposits Time deposits Cash equivalents Bills with repurchase agreement	December31,2023 22 $ 113,806 1,050,000 100,000 1,263,828 $	December31,2022
		22 $ 292,056 1,300,000 -
		1,592,078 $

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

• 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.

(2) 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 237,385 $ 39,052 707 277,144 2,661 ( 279,805 $ December31,2023 72,100 $ 100,592 172,692 46,598 219,290 $	December31,2022 124,962 $ 39,052 48 164,062 32,098) 131,964 $ December31,2022 62,100 $ 103,498 165,598 12,360 177,958 $

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• A. The nature of financial assets and liabilities 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 mandatorily measured at fair value through profit or loss Equity instruments Beneficiary certificates Derivative instruments (	2023 2022 68,054 $ 8,001 $ 30,670 3,809) ( 2,550) 25,240) ( 96,174 $ 21,048) ($ Years endedDecember31

• C. The Company 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) USD
	(Notionalprincipal) (In thousands) USD 1,500 $ Contract amount	Contractperiod
	(Notionalprincipal) USD
		2022/12/29-2023/1/31

The Company 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.

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• D. No financial assets at fair value through profit or loss of the Company were pledged to others.

• E. 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 646,094 $ 55,727) ( 590,367 $	December31,2022 644,302 $ 90,481) 553,821 $

• A. The Company has selected to classify the equity investments that are considered to be steady dividend income as financial assets at fair value through other comprehensive income. The fair value of such investments amounted to $590,367 and $553,821 as of December 31, 2023 and 2022, respectively.

• 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 34,754 $ - $	2022
		308,237 $
		46,760 $

• C. No financial assets at fair value through other comprehensive income of the Company were pledged to others.

• 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 Non-current items: Corporate bonds	December31,2023 December31,2022 87,461 $ 86,934 $

• A. For the years ended December 31, 2023 and 2022, interest income arising from financial assets at amortised cost amounted to $3,442 and $4,878, respectively.

• B. No financial assets at amortised cost of the Company were pledged to others.

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• 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 Company was $87,461 and $86,934, respectively.

• D. Information relating to credit risk of financial assets at amortised cost is provided in Note 12(2).

(5) Accounts receivable

Accounts receivable Less: Allowance for uncollectible accounts (	December31,2023 119,366 $ 33) ( 119,333 $	December31,2022 289,659 $ 90) 289,569 $

• 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 December31,2022 112,476 $ 269,280 $ 6,890 20,379 119,366 $ 289,659 $

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 $320,278.

• 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 Company’s accounts receivable was $119,366 and $289,659, respectively.

• E. Information relating to credit risk of accounts receivable is provided in Note 12(2).

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(6) Inventories

Inventories
Raw materials Work in progress Finished goods Raw materials Work in progress Finished goods	December31,2023
	Allowance for Cost valuation loss 86,862 $ 27,260) ($ 36,293 - 45,672 11,207) ( 168,827 $ 38,467) ($ December31,2023	Bookvalue
		59,602 $ 36,293 34,465
		130,360 $
	Allowance for Cost valuation loss 87,758 $ 12,323) ($ 1,725 - 124,601 30,413) ( 214,084 $ 42,736) ($	Bookvalue
		75,435 $ 1,725 94,188
		171,348 $

The cost of inventories recognised as expense for the year:

			Years ended	December	31
			2023		2022
Cost of goods sold		$	1,247,764	$	1,710,002
Unallocated overhead expense			798,840		429,857
(Gain on reversal of) loss on decline in market	(		4,269)		33,524
value
Scrapped inventory			18,856		6,337
		$	2,061,191	$	2,179,720

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

Other current financial assets
Time deposits pledged Restricted bank deposits	December31,2023 30,005 $ 16,141 46,146 $	December31,2022
		28,919 $ 16,062
		44,981 $

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

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(8) Investments accounted for using equity method

2023 At January 1 759,075 $ Addition of investments accounted for using equity method - Share of profit or loss of investments accounted for using equity method 38,001) ( Cumulative translation adjustment for using equity method 812) ( Earnings distribution of investments accounted for using equity method - ( At December 31 720,262 $ Subsidiaries December31,2023 GloryStone Inc. (GloryStone) 424,828 $ Golden Apple Investment Corporation (Golden Apple Investment) 126,312 Yinwang Investment Co., Ltd. (Yinwang Investment) 144,268 Guangdong Shekel Technology Co., Ltd. (Hanns Blegrain Ltd.) 24,854 720,262 $

2022 732,018 $ 30,695 7,760 20 11,418) 759,075 $ December31,2022 457,734 $ 121,445 149,182 30,714 759,075 $

Refer to Note 4(3) in the consolidated financial statements for the year ended December 31, 2023 for the information regarding the Company’s subsidiaries.

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(9) Property, plant and equipment

															Unfinished
														construction and
			Buildings and			Machinery and			Furniture and					equipment under
			structures			equipment			fixtures		Other	equipment			acceptance			Total
January 1, 2023
Cost		$	5,531,947		$	8,785,603		$	39,251		$	65,978		$	166,303		$	14,589,082
Accumulated depreciation
and impairment	(		2,762,475)	(		7,567,153)	(		14,115)	(		62,355)			-	(		10,406,098)
		$	2,769,472		$	1,218,450		$	25,136		$	3,623		$	166,303		$	4,182,984
2023
At January 1		$	2,769,472		$	1,218,450		$	25,136		$	3,623		$	166,303		$	4,182,984
Additions			-			-			-			-			325,890			325,890
Disposals	(		1)			-	(		9,133)			-			-	(		9,134)
Reclassifications			39,638			76,474			30,804			7,325	(		154,241)			-
Depreciation	(		303,911)	(		527,418)	(		13,247)	(		2,870)			-	(		847,446)
At December 31		$	2,505,198		$	767,506		$	33,560		$	8,078		$	337,952		$	3,652,294
December 31, 2023
Cost		$	5,566,275		$	8,288,475		$	60,387		$	67,993		$	337,952		$	14,321,082
Accumulated depreciation
and impairment	(		3,061,077)	(		7,520,969)	(		26,827)	(		59,915)			-	(		10,668,788)
		$	2,505,198		$	767,506		$	33,560		$	8,078		$	337,952		$	3,652,294

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January 1, 2022 Cost Accumulated depreciation and impairment ( 2022 At January 1 Additions Reclassifications Depreciation ( At December 31 December 31, 2022 Cost Accumulated depreciation and impairment (	Buildings and structures 5,382,280 $ 2,467,895) ( 2,914,385 $ 2,914,385 $ - 149,667 294,580) ( 2,769,472 $ 5,531,947 $ 2,762,475) ( 2,769,472 $	Machinery and equipment 8,113,460 $ 7,091,234) ( 1,022,226 $ 1,022,226 $ - 672,143 475,919) ( 1,218,450 $ 8,785,603 $ 7,567,153) ( 1,218,450 $	Furniture and fixtures 18,315 $ 6,842) ( 11,473 $ 11,473 $ - 20,936 7,273) ( 25,136 $ 39,251 $ 14,115) ( 25,136 $	Unfinished construction and equipment under Otherequipment acceptance 64,814 $ 431,150 $ 60,485) - ( 4,329 $ 431,150 $ 4,329 $ 431,150 $ - 579,063 1,164 843,910) ( 1,870) - ( 3,623 $ 166,303 $ 65,978 $ 166,303 $ 62,355) - ( 3,623 $ 166,303 $	Total 14,010,019 $ 9,626,456) 4,383,563 $ 4,383,563 $ 579,063 - 779,642) 4,182,984 $ 14,589,082 $ 10,406,098) 4,182,984 $

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.

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－ (10) Lease transactions lessee

• A. The Company leases various assets including land, 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 office and parking lot. Lowvalue assets comprise foreign warehouse and dormitory.

• C. The carrying amount of right-of-use assets and the depreciation charge are as follows:

Land Transportation equipment (Business vehicles) Other equipment Land Transportation equipment (Business vehicles) Other equipment	December31,2023 December31,2022 Bookvalue Bookvalue 261,429 $ 276,732 $ 66 480 5,330 7,059 266,825 $ 284,271 $ 2023 2022 Depreciationcharge Depreciationcharge 15,303 $ 15,303 $ 289 321 1,729 1,728 17,321 $ 17,352 $ Years endedDecember31	December31,2023 December31,2022 Bookvalue Bookvalue 261,429 $ 276,732 $ 66 480 5,330 7,059 266,825 $ 284,271 $ 2023 2022 Depreciationcharge Depreciationcharge 15,303 $ 15,303 $ 289 321 1,729 1,728 17,321 $ 17,352 $ Years endedDecember31
		2023 2022 Depreciationcharge Depreciationcharge 15,303 $ 15,303 $ 289 321 1,729 1,728 17,321 $ 17,352 $

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

2023

	2023	2023	2023
At January 1 Modification Depreciation ( At December 31 At January 1 Additions Depreciation ( At December 31	Transportation equipment Other equipment Land (Business vehicles) (Tank) Total 276,732 $ 480 $ 7,059 $ 284,271 $ - 125) ( - 125) ( 15,303) 289) ( 1,729) ( 17,321) ( 261,429 $ 66 $ 5,330 $ 266,825 $ Transportation equipment Other equipment Land (Business vehicles) (Tank) Total 275,939 $ 801 $ 8,787 $ 285,527 $ 16,096 - - 16,096 15,303) 321) ( 1,728) ( 17,352) ( 276,732 $ 480 $ 7,059 $ 284,271 $ 2022
	Land ( 275,939 $ 16,096 15,303) ( 276,732 $	Transportation equipment Business vehicles) 801 $ - 321) ( 480 $	Other equipment (Tank) 8,787 $ - 1,728) ( 7,059 $

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

			Years ended	December31
			2023	2022
Items affecting profit or loss
Interest expense on lease liabilities		$	6,329	$	6,658
Expense on short-term lease contracts			2,461		2,453
Expense on leases of low-value assets			7,913		9,138
Gain on lease modification	(		3)		-

• F. For the years ended December 31, 2023 and 2022, the Company’s total cash outflow for leases were $31,720 and $32,969, respectively.

(11) Leasing arrangements - lessor

• A. The Company 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 Company recognised rent income based on the operating lease agreement, which does not include variable lease payments, as follows:

(12)	Investment property Rent income	Years endedDecember31	Years endedDecember31
		2023 2,180 $	2022
			2,020 $

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

Buildings and Unfinished construction and equipment Land structures acceptance Total 4,974,140 $ 934,144 $ - $ 5,908,284 $ - 180,953) ( - 180,953) ( 4,974,140 $ 753,191 $ - $ 5,727,331 $ 4,974,140 $ 753,191 $ - $ 5,727,331 $ - - 1,348 1,348 - 1,348 1,348) ( - - 38,421) ( - 38,421) ( 4,974,140 $ 716,118 $ - $ 5,690,258 $ 4,974,140 $ 935,492 $ - $ 5,909,632 $ - 219,374) ( - 219,374) ( 4,974,140 $ 716,118 $ - $ 5,690,258 $

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January 1, 2022

Cost Accumulated depreciation and impairment 2022 At January 1 Additions Reclassifications Depreciation At December 31 December 31, 2022 Cost Accumulated depreciation and impairment	4,974,140 $ - ( 4,974,140 $ 4,974,140 $ - - - ( 4,974,140 $ 4,974,140 $ - ( 4,974,140 $	931,364 $ - $ 143,117) - ( 788,247 $ - $ 788,247 $ - $ - 2,780 2,780 2,780) ( 37,836) - ( 753,191 $ - $ 934,144 $ - $ 180,953) - ( 753,191 $ - $	5,905,504 $ 143,117) 5,762,387 $ 5,762,387 $ 2,780 - 37,836) 5,727,331 $ 5,908,284 $ 180,953) 5,727,331 $

• A. Rental income from investment property and direct operating expenses arising from investment property are shown below:

property are shown below:
Rental income from investment property Direct operating expenses arising from the investment property that generate rental income during the year	Years endedDecember31
	2023 173,161 $ 68,223 $	2022 156,602 $ 66,342 $

• B. The fair value of the investment property held by the Company as at December 31, 2023 and 2022 was $8,520,100 and $6,947,888, respectively, which was valued using the actual price registration. In addition, there was no significance difference between the fair value on December 31, 2023 and the assessment result of the fair value on February 27, 2024 under management’s assessment.

• C. Information about the investment property that was pledged to others as collateral is provided in Note 8.

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(13) Other payables

Repairs and maintenance expense payable Payables for machinery and equipment Salary and bonus payable Utility expenses payable Processing charge payable Import / export (customs) expense payable Others	December31,2023 December31,2022 69,174 $ 68,923 $ 57,241 112,595 54,438 79,290 16,847 20,448 5,621 - 933 4,333 71,971 63,147 276,225 $ 348,736 $

(14) Bonds payable

Bonds payable
Bonds payable Less: Maturity within one year	December31,2023 1,500,000 $ - 1,500,000 $	December31,2022
		1,500,000 $ -
		1,500,000 $

• 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

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• (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 secured 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 Company 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.

- (15) Long term borrowings

Borrowing periodandrepayment term Coupon Rate Land and buildings on Yixian Road, Sec. 2 pledged as collateral for borrowings NTD borrowings from Land Bank: the borrowing 1.95% 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) 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 1.92% the first 2 years, principal is payable quarterly starting from the 3rd year until October 2026 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)

December31,2023 1,641,159 $ 567,770 47,500 2,256,429 372,010) 1,884,419 $

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Borrowing periodandrepayment term 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) 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 Less: Current portion (including unamortised long-term borrowing cost)	Coupon Rate 1.70% 1.79% (	December31,2022 1,813,913 $ 336,630 2,150,543 172,754) 1,977,789 $

• Note: The pledged assets are property, plant and equipment. On May 8, 2018, the Company entered a long-term borrowing contract for 15 years with Land Bank, for a facility of $4,160,000 and has repaid $1,100,000 and $900,000 in advance in December 2021 and January 2022, respectively.

(16) Pensions

• A. Effective July 1, 2005, the Company 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 Company 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 Company for the years ended December 31, 2023 and 2022 were $11,090 and $11,156, respectively.

(17) 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

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

Note: The chairman was authorized 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:

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

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E. Expenses incurred on share-based payment transactions are shown below:

Equity-settled		Year ended December31,2023	Year ended December31,2022
		229 $	- $

(18) 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:

Movements in the number of the Company’s ordinary shares outstanding (in thousands) are as follows:	Movements in the number of the Company’s ordinary shares outstanding (in thousands) are as follows:	Movements in the number of the Company’s ordinary shares outstanding (in thousands) are as follows:	Movements in the number of the Company’s ordinary shares outstanding (in thousands) are as follows:
In order to promote the development of strategy alliance, improve financial structure, fulfill working capital, and repay liabilities, 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. 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: 2023 2022 At January 1 805,042 806,949 Employee share options exercised 719 - Purchase of treasury shares 3,750) ( 1,907) ( At December 31 802,011 805,042 Name of company holdingthe shares Reason for reacquisition Number of shares (in thousands) Carryingamount The Company To be reissued to employees 3,750 $ 37,738 December31,2023
			Number of shares (in thousands) Carryingamount 3,750 $ 37,738
	The Company	To be reissued to employees

• B. In order to promote the development of strategy alliance, improve financial structure, fulfill working capital, and repay liabilities, 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:

• 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.

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• 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:

December 31, 2022 Name of company Number of shares Carrying amount holding the shares Reason for reacquisition (in thousands) (Note) The Company To be reissued to employees 1,907 $ 18,264

Note: Excluding transaction cost.

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.

• (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.

(19) 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.

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(20) 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.

• 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:

Legal reserve Reversal of special reserve Cash dividends	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

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(21) Operating revenue

Operating revenue
Revenue from contracts with customers Touch sensors and related products Rental revenue from property	Years endedDecember31
	2023 1,080,347 $ 173,162 1,253,509 $	2022
		2,098,527 $ 156,602
		2,255,129 $

Disaggregation of revenue from contracts with customers

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

py following major geographical regions:	g p	g p
Revenue from external customer contracts China South Korea Taiwan Europe	Years endedDecember31
	2023 627,717 $ 347,446 273,208 5,138 1,253,509 $	2022
		939,013 $ 1,130,362 183,693 2,061
		2,255,129 $

(22) Interest income

Interest income
Interest income from bank deposits Interest income from financial assets measured at amortised cost Other interest income	Years endedDecember31
	2023 17,577 $ 3,442 20 21,039 $	2022
		6,536 $ 4,878 156
		11,570 $

(23) 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 $ 9,094 2,180 95 - 15,971 43,593 $	2022
		10,859 $ 52,972 2,020 - 33,506 14,699
		114,056 $

Note 1: Refer to Note 6(11) for details.

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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 Company’s associate, Hannstar Display Corp.

(24) Other gains and losses

Gain (loss) on financial instruments at fair value through profit or loss Net foreign exchange gain Gain on disposals of property, plant and equipment Gain on lease modifications	2023 2022 96,174 $ 21,048) ($ 7,595 40,252 2,282 - 3 - 106,054 $ 19,204 $ Years endedDecember31

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

Employee benefit expense Salary expenses Labour and health insurance fees Pension costs Directors' remuneration Other personnel expenses Depreciation expense Amortisation charge Employee benefit expense Salary expenses Labour and health insurance fees Pension costs Directors' remuneration Other personnel expenses Depreciation expense Amortisation charge	YearendedDecember31,2023	YearendedDecember31,2023	YearendedDecember31,2023
	Operating costs Operating expenses Total 147,962 $ 59,860 $ 207,822 $ 18,420 5,267 23,687 8,289 2,801 11,090 - 2,613 2,613 20,125 6,491 26,616 900,829 2,359 903,188 6,666 3,112 9,778 YearendedDecember31,2022
	Operating costs 142,783 $ 19,033 8,344 - 20,686 832,846 6,435	Operating expenses 57,156 $ 5,381 2,812 2,350 7,775 1,984 3,351	Total
			199,939 $ 24,414 11,156 2,350 28,461 834,830 9,786

As of December 31, 2023 and 2022, the Company had 285 and 321 employees, including 7 and 6 non-employee directors, respectively.

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For the years ended December 31, 2023 and 2022, the average employee benefits were $968 and $838, respectively, the average salary expenses were $748 and $635, respectively, and the average change in adjustments on salary expenses was (17.80%).

The Company’s salary and remuneration policy for directors, managers and employees is as follows:

• a. Directors’ remuneration policies: In accordance with the Company’s Articles of Incorporation, directors’ remuneration of the Company shall refer to the Company’s overall operating performance, operating risk and trend of the industry in the future and individual director’s contribution to the Company which shall be authorised by the Board of Directors to be determined based on the estimates of remuneration committee.

• b. Managers’ compensation policies: The Company’s managers’ compensation is based on the individual performance and contribution to the Company’s overall operations and considers the Company’s future operating risk and the compensation level within the same industry. It will be proposed by the remuneration committee and discussed by the Board of Directors.

• c. Employees’ salary policies: The Company follows Labor Standards Act and related regulations to determine employees’ salaries and benefits, employees’ salary including salaries, bonus and compensation.

• (a) Employees’ salary standard is determined based on job responsibility, education and experience, professional knowledge and skill and their professional seniority. Salary and remuneration shall not be based on the employees’ age, gender, race, religion, political affiliation and civil status.

• (b) Bonus will be distributed based on the Company’s operating performance and employees’ individual performance.

• (c) Employees’ compensation is determined based on the job grade, performance and years of service.

• (d) Salary increase is determined based on the Company’s operating condition, taking into consideration domestic economic growth rate, price index, salary increases within the same industry and the individual performance.

• 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 between 0.001% and 15% 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.

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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.

• 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.

(26) Income taxes

• A. Income tax benefit

• (a) Components of income tax benefit:

(a) Components of income tax benefit:
		Years ended	December31
		2023			2022
Current tax:
Prior year income tax overestimation	($	24,844)			$	-
Total current tax	(	24,844)				-
Deferred tax:
Origination and reversal of temporary
differences		24,843	(			16,963)
Total deferred tax		24,843	(			16,963)
	($	1)	($			16,963)
Reconciliation between income tax benefit and accounting		profit
		Years endedDecember31
		2023			2022
Income tax calculated by applying statutory rate to the profit before tax	($	179,955)		$		1,561
Expenses disallowed by tax regulation		12,597				347
Tax exempt income by tax regulation	(	20,120)	(			12,678)
Temporary differences not recognised as deferred tax assets		-	(			6,193)
Taxable loss not recognised as deferred tax assets		194,577				-
Change in assessment of realisation of deferred tax assets		17,744				-
Prior year income tax overestimation	(	24,844)				-
	($	1)	($			16,963)

• B. Reconciliation between income tax benefit and accounting profit

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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:
－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 －Deferred tax assets: Provisions Impairment loss Inventory valuation loss Loss carryforward Others －Deferred tax liabilities: Unrealised exchange gain Temporary differences: Temporary differences:	2023
	Recognised in Recognised in other comprehensive AtJanuary1 profitor loss income 2,197 $ 369) ($ - $ 11,177 - - 1,843 6,705 - 74,420 14,297 - 4,806 3,725) ( - 94,443 16,908 - 55) ( 55 - 94,388 $ 16,963 $ - $

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

follows:
	December31,2023
Year incurred 2014 2016 2022 2023	Amount filed/ Unrecognised assessed Unusedamount deferredtax assets Expiry year 994,010 $ 88,720 $ 88,720 $ 2024 278,062 278,062 - 2026 24,409 24,409 - 2032 972,887 972,887 972,887 2033 December31,2022
Year incurred 2014 2016 2022	Amount filed/ assessed Unusedamount 994,010 $ 88,720 $ 278,062 278,062 76,803 76,803	Unrecognised deferredtax assets Expiry year - $ 2024 - 2026 - 2032

• D. The Company’s income tax returns through 2021 have been assessed and approved by the Tax Authority.

(27) (Loss) earnings per share

. py Authority. (Loss) earnings per share	g pp y
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 Assumed conversion of all dilutive potential ordinary shares 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 $

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(28) Supplemental cash flow information

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

Purchase of investment property Add: Opening balance of payable on equipment Less: Ending balance of payable on equipment Cash paid during the year

		Years ended	December31	December31	December31
		2023			2022
	$	325,890		$	579,063
		112,452			95,272
(		57,241)	(		112,452)
	$	381,101		$	561,883
		Years ended	December31
		2023			2022
	$	1,348		$	2,780
		143			976
		-	(		143)
	$	1,491		$	3,613

(29) Changes in liabilities from financing activities

For the years ended December 31, 2023 and 2022, the Company’s liabilities from financing activities included 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.

At January 1 Changes in cash flow from financing activities Changes in other non-cash items At December 31 At January 1 Changes in cash flow from financing activities Changes in other non-cash items At December 31		2023
	Bonds payable 1,500,000 $ - - 1,500,000 $	Long-term borrowings Lease liability (Note) (Note) 2,150,543 $ 293,211 $ 105,886 21,346) ( - 6,201 2,256,429 $ 278,066 $ 2022

Note: Including current portion.

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7. Related Party Transactions

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

Names of related parties	Relationship with the Company
HannStar Display Corporation (Hannstar) Hannstar Technology Services (Shenzhen) Inc. (Hannstar Technology) Winbond Electronics Corp. (Winbond Electronics) GloryStone Inc. (GloryStone) Golden Apple Investment Corporation (Golden Apple) Guangdong Shekel Technology Co., Ltd. (Guangdong Shekel) Flying horse on Maryland Inc. (Flying horse on Maryland) Pottery Inc. (Pottery)	Entities with significant influence to the Company Other related party Other related party Subsidiary Subsidiary Second tier subsidiary. Second tier subsidiary. Second tier subsidiary.

(2) Significant related party transactions

A. Operating revenue

Operating revenue
Subsidiaries Second tier subsidiary.	Years endedDecember31
	2023 2022 83,793 $ 83,488 $ 6,666 2,242 90,459 $ 85,730 $

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

B. Purchases

based on the mutual agreement. Purchases
Purchases of goods: Entities with significant influence to the Company	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.

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C. Rent expense

Rent expense
Hannstar Subsidiary	Years endedDecember31
	2023 9,746 $ 158 9,904 $	2022
		9,743 $ 869
		10,612 $

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

D. Interest expenses

Interest expenses
Other related party Subsidiary	Years endedDecember31
	2023 2022 5,904 $ 295 $ 3,973 2,714 9,877 $ 3,009 $

E. Accounts receivable

Accounts receivable: GloryStone Second tier subsidiary. Other receivables: Subsidiaries Second tier subsidiary. Entities with significant influence to the Company	December31,2023 December31,2022 51,827 $ 51,963 $ 3,600 2,055 55,427 $ 54,018 $ 1,006 $ 374 $ 161 69 143 - 1,310 $ 443 $

It pertains to rent receivable and office expenses.

F. Accounts payable

Accounts payable
Accounts payable: Entities with significant influence to the Company Other payables: Second tier subsidiary. Entities with significant influence to the Company Subsidiaries	December31,2023 5,011 $ 428 $ 23 13 464 $	December31,2022
		13,058 $
		167 $ 23 57
		247 $

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G. Prepayments (shown as other current assets)

GloryStone

Years endedDecember31	Years endedDecember31
2023 - $	2022
	5,724 $

It pertains to prepayments for an accommodation project between the Company and a subsidiary.

• H. Property transactions

• (a) Acquisition of financial assets:

Year ended December 31, 2023

No. of shares Accounts (in thousands) Objects Consideration

Financial assets Winbond 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 Company	Years endedDecember31	Years endedDecember31	Years endedDecember31
	Disposal proceeds Gain 10 $ 9 $ 2023	2022
	Disposal proceeds 10 $	Disposal proceeds - $	Gain
			- $

• I. 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.

• J. The design and process development income from Hannstar for the years ended December 31, 2023 and 2022 amounted to $0 and $33,506, respectively.

(3) Key management compensation

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

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8. Pledged Assets

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

imports 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 and investment property	Bookvalue December31,2023 30,005 $ 16,141 5,397,496 5,443,642 $	Bookvalue
		December31,2022
		28,919 $ 16,062 5,488,679
		5,533,660 $

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 Company’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(20) and 6(25) 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 Company’s objectives when managing capital are to safeguard the Company’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

Financial instruments by category
Note: Including current portion. Financial assets Financial assets at fair value through profit or loss 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 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 (Note) Long-term borrowings (Note) Lease liability (Note)	December31,2023 499,095 $ 590,367 $ 1,263,828 $ 87,461 174,760 12,742 46,146 1,584,937 $ 424 $ 68,854 276,689 1,500,000 2,256,429 4,102,396 $ 278,066 $	December31,2022
		309,922 $
		553,821 $
		1,592,078 $ 86,934 343,587 11,701 44,981
		2,079,281 $
		502 $ 152,068 348,983 1,500,000 2,150,543
		4,152,096 $
		293,211 $

B. Financial risk management policies

(a) The Company’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk, interest rate risk and price risk), credit risk and liquidity risk. To minimise any adverse effects on the financial performance of the Company, derivative financial instruments, such as foreign exchange forward contracts and foreign currency option contracts are used to hedge certain exchange rate risk.

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• (b) Risk management is carried out by a central treasury department (Company treasury) under policies approved by the Board of Directors. Company treasury identifies, evaluates and hedges financial risks in close cooperation with the Company’s operating units. The Board provides 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 Company operates internationally and is exposed to exchange rate risk arising from the transactions of the Company 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 the Company to manage its foreign exchange risk against the functional currency. The Company is required to hedge the entire foreign exchange risk exposure with the Company 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 Company’s businesses involve some non-functional currency operations (the Company’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:

Foreign currency Exchange (In thousands) rate (Foreign currency: functional currency) Financial assets Monetary items USD:NTD 3,931 $ 30.705 JPY:NTD 11,884 0.2173 Financial liabilities Monetary items USD:NTD 1,082 30.705 JPY:NTD 103,858 0.2173				December	31,2023	31,2023	31,2023
				Bookvalue (NTD) 120,701 $ 2,582 33,223 22,568	Sensitivityanalysis
					Degree of variation 1% 1% 1% 1%	Effect on profit or loss 1,207 $ 26 332 226	Effect on other comprehensive income
							- $ - - -

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Foreign currency Exchange (In thousands) rate (Foreign currency: functional currency) Financial assets Monetary items USD:NTD 10,121 $ 30.715 JPY:NTD 79,482 0.2325 Financial liabilities Monetary items USD:NTD 1,073 30.715 JPY:NTD 207,559 0.2325				December	31,2022
				Bookvalue (NTD) 310,867 $ 18,480 32,957 48,257	Sensitivityanalysis
					Degree of Effect on profit Effect on other comprehensive variation or loss income 1% 3,109 $ - $ 1% 185 - 1% 330 - 1% 483 -

• iv. Total exchange gain, including realised and unrealised, arising from significant foreign exchange variation on the monetary items held by the Company for the years ended December 31, 2023 and 2022, amounted to $7,594 and $40,252, respectively.

Price risk

• i. The Company’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 Company diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Company.

• ii. The Company’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 $4,984 and $3,099, 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 Company’s main interest rate risk arises from long-term borrowings with variable rates, which expose the Company to cash flow interest rate risk. Company policy is to maintain at least 1~3% of its borrowings at fixed rate using interest rate swaps to achieve this when necessary. During the years ended December 31, 2023 and 2022, the Company’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 Company 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.

• ii. The Company adopts the assumption that the default occurs when the contract payments are past due over 120 days.

• iii. The Company adopts the following assumption 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 Company wrote-off the financial assets, which cannot be reasonably expected to be recovered, after initiating recourse procedures. However, the Company will continue executing the recourse procedures to secure their rights. On December 31, 2023 and 2022, the Company had no written-off financial assets that are still under recourse procedures.

• vi. The methods used by the Company 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 Company's credit rating standards. The Company applies different loss rate methodology and provision matrix to estimate the expected credit loss of different groups.

• (ii) 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:
December 31, 2023 Expected loss rate Total book value December 31, 2022 Expected loss rate Total book value	Group1 0.03%~100% - $ Group1 0.03%~100% - $	Group2 100% 119,366 $ Group2 100% 289,659 $	Total
			119,366 $
			Total
			289,659 $

• 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 Company applying the modified approach to provide loss allowance for accounts receivable are as follows:

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

(c) Liquidity risk

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

• ii. The table below analyses the Company’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:

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Non-derivative financial liabilities:

Non-derivative financial liabilities :
December 31, 2023 Notes payable Accounts payable (including related parties) Other payables (including related parties) Lease liability Other current liabilities Bonds payable Long-term borrowings Non-derivative financial liabilities : December 31, 2022 Notes payable Accounts payable (including related parties) Other payables (including related parties) Lease liability Other current liabilities Bonds payable Long-term borrowings	Less than 1year 424 $ 68,854 276,689 15,122 9,031 8,010 412,290 Less than 1year 502 $ 152,068 348,983 15,049 3,735 8,010 208,271	Between 2 and3years - $ - - 31,124 - 1,516,020 802,946 Between 2 and3years - $ - - 30,608 - 16,020 628,004	Between 3 and4years - $ - - 28,833 - - 398,188 Between 3 and4years - $ - - 30,071 - 1,508,010 497,005	Over 5years
				- $ - - 202,987 - - 812,089 Over 5years
				- $ - - 217,483 - - 995,193

• iii. In order to repay the borrowings, the Company plans to issue shares of stock through public offering or private placement. Refer to Note 6(18)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 Company’s investment in listed stocks is included in Level 1.

• Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. The fair value of the Company’s investment in forward foreign exchange contracts is included in Level 2.

• Level 3: Unobservable inputs for the asset or liability.

• B. Fair value information of investment property at cost is provided in Note 6(12).

• C. Financial instruments not measured at fair value

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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.

are approximate to their fair values.
Financial liabilities: Bonds payable Long-term borrowings (Note) Financial liabilities: Bonds payable Long-term borrowings (Note)		December	31,2023
	Bookvalue 1,500,000 $ 2,256,429 3,756,429 $		Fairvalue
		Level 1 - $ - - $ December	Level 2 1,307,923 $ - 1,307,923 $ 31,2022	Level3
				- $ 2,003,251
				2,003,251 $
	Bookvalue 1,500,000 $ 2,150,543 3,650,543 $		Fairvalue
		Level 1 - $ - - $	Level 2 1,262,123 $ - 1,262,123 $	Level3
				- $ 1,858,726
				1,858,726 $

Note: Including current portion.

• D. Financial and non-financial instruments measured at fair value

(a) The related information on financial and non-financial instruments measured at level on the basis of the nature, characteristics and risks of the assets and December 31, 2023 and 2022 are as follows: December 31, 2023 Level 1 Level 2 Level3 Assets Recurring fair value Financial assets at fair value through profit or loss Listed stocks 269,663 $ - $ - $ Unlisted stocks - - 95,788 Beneficiary certificates - - 132,937 Non-hedging derivatives - 707 - Financial assets at fair value through other comprehensive income Listed and emerging stocks 590,367 - - 860,030 $ 707 $ 228,725 $

fair value by liabilities at : Total 269,663 $ 95,788 132,937 707 590,367 1,089,462 $

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December 31, 2022 Assets Recurring fair value Financial assets at fair value through profit or loss Listed stocks Unlisted stocks Beneficiary certificates Non-hedging derivatives Financial assets at fair value through other comprehensive income Listed and emerging stocks	123,121 $ - - - 553,821 676,942 $	- $ - - 48 - 48 $	- $ 81,582 105,171 - - 186,753 $	123,121 $ 81,582 105,171 48 553,821
				863,743 $

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

  • i. For the instruments the Company used market quoted prices as their fair values (that is, Level 1), the Company 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 parent company only balance sheet date.

  • 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 Company 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.

• E. On December 31, 2023 and 2022, there was no transfer between Level 1 and Level 2.

• F. On December 31, 2023 and 2022, there was no transfer into or out from Level 3.

• G. Finance and accounting segment is in charge of valuation procedures for fair value measurements being categorized 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

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fair value. The Company’s finance and accounting department use the valuation methods and assumptions announced by the Financial Supervisory Commission, Securities and Futures Bureau or through outsourced appraisal performed by the external valuer.

• 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	$	95,788	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; the
				marketability		higher the discount for lack
						of marketability, the lower
						the fair value
Private equity fund		132,937	Net asset value	Not applicable	Not applicable	Not applicable
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	$	81,582	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; the
				marketability		higher the discount for lack
						of marketability, the lower
						the fair value
Private equity fund		105,171	Net asset value	Not applicable	Not applicable	Not applicable
investment

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.

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• 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

Not applicable

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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. （Note1）	Creditor	Borrower	General ledger account （Note2）	Is a related party	Maximum outstanding balance during the year ended December 31, 2023 （Note 3）	Balance at December 31, 2023 （Note4）	Actual amount drawndown	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)

Securitiesheld by	Marketable securities	Relationship with the securitiesissuer	General ledgeraccount		Ending	Balance		Note
				Number of shares (inthousands)	Bookvalue	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 other comprehensive income- 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 50,000 units	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
					87,461 $
					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

Investee in Mainland China	Main business activities	Paid-in capital （Note1）	Investment method	Accumulated amount of remittance from Taiwan to Mainland China as of January 1, 2023	endedDecember31,2023 Amount remitted from Taiwan to Mainland China/ Amount remitted back to Taiwan for the year	endedDecember31,2023 Amount remitted from Taiwan to Mainland China/ Amount remitted back to Taiwan for the year	Accumulated amount of remittance from Taiwan to Mainland China as of December 31, 2023	Net income of investee for the year ended December31,2023	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the year ended December 31,2023	Book value of investments in Mainland China as of December 31, 2023(Note 3)	Accumulated amount of investment income remitted back to Taiwan as of December31,2023	Note
					Remitted to Mainland China	Remitted back toTaiwan
NanJin GuanXin Co. Ltd. Guangdong Shekel Technology Co., Ltd. (formerly known as: HeXin Shang Mao)	Development and production of PMMA, light guide plate and related components Provision of technical services	$ 469,950 29,160	Note 2 Note 3	$ 148,434 29,160	$ - -	$ - -	$ 148,434 29,160	$ - (4,915)	31.12 100.00	$ - $ (4,915)	$ - $ 23,451	$ - $ -	Note 4 Note 6

Accumulated amount of Investment amount approved by the Ceiling on investments in Mainland remittance from Taiwan to Investment Commission of the China imposed by the Investment Company name Mainland China (Note 5) Ministry of Economic Affairs (MOEA) 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

HANNSTOUCH HOLDINGS COMPANY (FORMERLY HANNSTOUCH SOLUTION INCORPORATED CASH AND CASH EQUIVALENTS DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

Statement 1

tatement 1
Items Summary Petty cash and revolvimg funds Bank deposit Checking account deposits NTD Demand deposits NTD JPY 11,884 thousand, exchange rate: $0.2173 USD 1,234 thousand, exchange rate: $30.705 Cash equivalents Time deposits Bills with repurchase agreement	Amount
	22 $ 639 72,694 2,582 37,891 1,050,000 100,000
	1,263,828 $

Statement 1

HANNSTOUCH HOLDINGS COMPANY

(FORMERLY HANNSTOUCH SOLUTION INCORPORATED

CHANGE IN CURRENT FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

Statement 2

Statement 2
Investee	Valuation adjustment Balance as at January1,2023 Increase Decrease Balance as at December 31,2023								Collateral orpledge Description
	No. of shares (in thousands)		Fairvalue No. of shares (in thousands)		Amount No. of shares (in thousands)	Amount Amount No. of shares (in thousands)		Fairvalue
HIM International Music Inc. Union Bank of Taiwan Preferred Stock Banyan Tree Holdings Limited Fullerton Technology Co., Ltd. Aten International Co., Ltd. Wistron Corporation Farglory Land Development co., Ltd. Winstek Semiconductor Technology Materials Analysis Technology Inc. Super Micro Computer, Inc. Winbond Electronics Corp. YH Bio Co., Ltd. Touch Cloud Inc. Non-hedging derivatives	191 466 2,990 3,209 44 - - - - - - 6,973 250 Not applicable		15,490 $ 20 24,092 14 21,885 775 58,244 791 3,410 - - 900 - 240 - 276 - 112 - 2 - 1,500 7,917 - 878 - 48 Not applicable 131,964 $		1,963 $ - 733 339) ( 6,177 151) ( 14,883 - - 44) ( 30,679 900) ( 14,768 75) ( 23,427 - 30,173 - 14,265 - 33,000 - - - - - - Not applicable 170,068 $	- $ 5,019 $ 211 17,862) ( 266 141 1,058) ( 2,034 3,614 - 16,673 4,000 3,432) ( 22 - 30,679) ( - - 4,615) ( 781) ( 165 - 1,772 276 - 4,133) ( 112 - 573 2 - 12,675 1,500 - 13) ( 6,973 - 653 250 - 659 Not applicable 57,646) ($ 35,419 $		22,472 $ 7,229 29,038 89,800 - - 9,372 25,199 26,040 14,838 45,675 7,904 1,531 707 279,805 $	None 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 Note
			$

Note: The amount pertains to fair value of non-hedging derivatives as at December 31, 2023, please refer to Note 6(2) for details.

Statement 2

HANNSTOUCH HOLDINGS COMPANY

(FORMERLY HANNSTOUCH SOLUTION INCORPORATED)

CHANGE IN NON-CURRENT FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

Statement 3

Statement 3
Investee	Balance as at January1,2023			Increase			Decrease	Valuation adjustment	No. of shares (in thousands) Fairvalue Collateral orpledge Description Balance as at December 31,2023
	No. of shares (in thousands)		Fairvalue	No. of shares (in thousands)		Amount	No. of shares (in thousands) Amount	Amount	No. of shares (in thousands)
NFORE TECHNOLOGY Co., Ltd. Boretech Resource Recovery Engineering Co., Ltd. Strong-Wave Radio Technology Inc. Lian Ding Capital Co., Ltd. Grandfull Convergence Innovation Growth Fund, L.P..C. Cypress Venture Captial III Ltd.	1,000 425 - Not applicable Not applicable Not applicable		47,573 $ 25,214 - 57,095 29,553 18,523 177,958 $	- - 3,333 Not applicable Not applicable Not applicable		- $ - 10,000 - - - 10,000 $	- - $ - - - - Not applicable - Not applicable 2,905) ( Not applicable - 2,905) ($	3,565 $ 961 960) ( 13,841 14,353 2,477 34,237 $	1,000 425 3,333 Not applicable Not applicable Not applicable		51,138 $ None 26,175 〃 9,040 〃 70,936 〃 41,001 〃 21,000 〃 219,290 $

Statement 3

HANNSTOUCH HOLDINGS COMPANY

(FORMERLY HANNSTOUCH SOLUTION INCORPORATED)

CHANGE IN NON-CURRENT FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

Statement 4

Statement 4
Investee	Balance as at January1,2023 Increase Decrease				Valuation adjustment Amount No. of shares (in thousands) Acquisitioncost Fairvalue Collateral orpledge Description Balance as at December 31,2023
	No. of shares (in thousands)	Fairvalue No. of shares (in thousands)	Amount No. of shares (in thousands)	Amount	Amount No. of shares (in thousands)
Hannstar Display Corp.	49,670	553,821 $ 150	1,792 $ -	- $	34,754 $ 49,820	646,094 $ 590,367 $ None None

Statement 4

HANNSTOUCH HOLDINGS COMPANY

(FORMERLY HANNSTOUCH SOLUTION INCORPORATED CHANGE IN INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD FOR THE YEAR ENDED DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

Statement 5

Statement 5
Name (	Cash dividends paid duringthe year Number of shares Number of shares in thousands ofshares) Amount (in thousands ofshares) Amount Amount 4,500 - $ - - $ - $ 15,000 121,445 - - - 33,000 457,734 - - - 15,000 149,182 - - - 1,000 30,714 - - - 759,075 $ - $ - $ Opening balance Addition	Investment income (loss)	Cumulative translation adjustment	Ending balance	Market price or netequity
	Number of shares in thousands ofshares) 4,500 15,000 33,000 15,000 1,000	Amount - $ 4,867 32,906) ( 4,914) ( 5,048) ( 38,001) ($			Total amount - $ 126,312 424,828 144,268 24,854 720,262 $
Richest Investment Ltd. Golden Apple Investment Corporation GloryStone Inc. Yin Wang Investment Corporation Hanns Blegrain Ltd.

Statement 5

HANNSTOUCH HOLDINGS COMPANY

(FORMERLY HANNSTOUCH SOLUTION INCORPORATED DETAILS OF ACCOUNTS RECEIVABLE

DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

Statement 6

CustomerName A customer B customer C customer D customer Others Less: Allowance for doubtful accounts	Amount Note 37,480 $ 27,921 21,808 21,356 10,801 The balance of individual client account is less than 5% of the accounts receivable balance 119,366 33) ( 119,333 $	Note

Statement 6

HANNSTOUCH HOLDINGS COMPANY (FORMERLY HANNSTOUCH SOLUTION INCORPORATED) DETAILS OF INVENTORIES

DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

Statement 7

Amount

Items Materials and supplies Work in progress Finished goods Less: Allowance for inventory valuation losses and loss for obsolete and slow-moving inventories (	Cost 86,862 $ 36,293 45,672 168,827 38,467) 130,360 $	Net realisable value 84,632 $ 36,293 37,047 157,972 $	Note
			Inventories calculated based on lower of cost and the net realisable value.

Statement 7

HANNSTOUCH HOLDINGS COMPANY

(FORMERLY HANNSTOUCH SOLUTION INCORPORATED) DETAILS OF ACCOUNTS PAYABLE

DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

Statement 8 Vendor name A Vendor Others	Amount Note 26,092 $ 37,751 The balance of individual vendor account is less than 5% of the accounts payable balance 63,843 $	Note

Statement 8

HANNSTOUCH HOLDINGS COMPANY

(FORMERLY HANNSTOUCH SOLUTION INCORPORATED) DETAILS OF LONG-TERM BORROWINGS DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

Statement 9 Creditor	Summary Secured borrowings for land and buildings located in Yixian Rd., Sec. 2, with a contract period of 15 years. Interest is payable monthly for the first 3 years, and the principal is payable quartely starting from the fourth year until May 2033. The borrowing period is 5 years, interest is payable monthly for the first 2 years, and the principal is payable quarterly starting from the third year until October 2026. The borrowing period is 5 years, interest is payable quarterly and the principal is payable quarterly starting from the inception date until September 2028. Current portion (including unamortized cost of long-term borrowings) (	Amount 1,641,159 $ 567,770 47,500 2,256,429 372,010) 1,884,419 $	Contractperiod 2018/5~2033/5 2021/10~2026/10 2023/9~2028/9	Interest 1.95% 1.92% 2.00%	Pledged orguarantee
Land Bank Bank of Taiwan Chang Hwa Commercial Bank Less:					Investment property Machinery and equipment -

Statement 9

HANNSTOUCH HOLDINGS COMPANY

(FORMERLY HANNSTOUCH SOLUTION INCORPORATED) DETAILS OF OPERATING REVENUE

FOR THE YEAR ENDED DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

Statement 10

Items Sales revenue Touch products Rental revenue from property Total operating revenue Less: Sales returns and discounts and allowances Operating revenue, net	Numbers (in thousand pcs) 689 (	Amount 1,124,774 $ 173,162 1,297,936 44,427) 1,253,509 $

Statement 10

HANNSTOUCH HOLDINGS COMPANY (FORMERLY HANNSTOUCH SOLUTION INCORPORATED) DETAILS OF OPERATING COST

FOR THE YEAR ENDED DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

Statement 11
Items			Amount
Direct materials
Add: Raw materials at beginning		$	87,758
Material purchased during the year			789,753
Less: Raw materials at the end	(		86,862)
Others	(		340,737)
Cost of material			449,912
Direct labor			55,653
Overhead			1,689,852
Unallocated overhead expense	(		798,840)
Manufacturing cost			1,396,577
Add: Beginning work in progress			1,725
Less: Ending work in progress	(		36,293)
Cost of finished goods			1,362,009
Add: Beginning finished goods			124,600
Purchases during the year			2,418
Less: Ending finished goods	(		45,672)
Expenses order settlement	(		2,752)
Others	(		192,839)
Cost of finished goods sold			1,247,764
Unallocated fixed overhead expense			798,840
Gain on reversal of decline in market value	(		4,269)
Scrapped inventories			18,856
Total operating cost		$	2,061,191

Statement 11

HANNSTOUCH HOLDINGS COMPANY (FORMERLY HANNSTOUCH SOLUTION INCORPORATED) DETAILS OF MANUFACTURING EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2023 (Expressed in thousands of New Taiwan dollars)

Statement 12

Items Depreciation Repairs and maintenance expense Utilities expense Salary expenses Amortisation charge Others	Amount Note 900,829 $ 215,326 235,014 110,735 6,666 221,282 The balance of individual item account is less than 5% of the manufacturing expense. 1,689,852 $

Statement 12

HANNSTOUCH HOLDINGS COMPANY

(FORMERLY HANNSTOUCH SOLUTION INCORPORATED) DETAILS OF OPERATING EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

Statement 13

Employee benefit expense Salary expenses Labour and health insurance fees Pension costs Directors’ remuneration Other employee benefit expenses Depreciation Amortisation charge Import / export (customs) expenses Testing fee Others

Selling General and administrative Research and development expenses expenses expenses Total Note 9,082 $ 38,507 $ 12,271 $ 59,860 $ 902 3,150 1,215 5,267 506 1,586 709 2,801 - 2,613 - 2,613 650 5,271 570 6,491 121 1,064 1,174 2,359 - - 3,112 3,112 7,479 - - 7,479 501 23,804 720 25,025 6,294 36,232 8,145 50,671 The balance of individual item account is less than 5% of the operating expense. 25,535 $ 112,227 $ 27,916 $ 165,678 $

Statement 13