INNOLUX CORPORATION AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND

INDEPENDENT AUDITORS’ REVIEW REPORT SEPTEMBER 30, 2023 AND 2022

~1~

INDEPENDENT AUDITORS' REVIEW REPORT

To the Board of Directors and Shareholders of Innolux Corporation:

Introduction

We have reviewed the accompanying consolidated balance sheets of Innolux Corporation and subsidiaries (the “Group”) as at September 30, 2023 and 2022, and the related consolidated statements of comprehensive income for the three-month and nine-month periods then ended, as well as the consolidated statements of changes in equity and of cash flows for the nine-month periods then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies. Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” and International Accounting Standard 34, “Interim Financial Reporting” that came into effect as endorsed by the Financial Supervisory Commission. Our responsibility is to express a conclusion on these consolidated financial statements based on our reviews.

Scope of Review

We conducted our reviews in accordance with the Standard on Review Engagements 2410, “Review of Financial Information Performed by the Independent Auditor of the Entity” of the Republic of China. A review of consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our reviews and the reports of other auditors (please refer to the Other matter section), nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Group as at September 30, 2023 and 2022, and of its consolidated financial performance for the three-month and nine-month periods then ended and its consolidated cash flows for the nine-month periods then ended in accordance with the Regulations Governing the Preparation of Financial Reports

~2~

by Securities Issuers and International Accounting Standard 34, “Interim Financial Reporting” that came into effect as endorsed by the Financial Supervisory Commission.

Other matter – Reference to the reviews of other auditors

We did not review the financial statements of certain subsidiaries of the Company for the nine-month periods ended September 30, 2023 and 2022, which were reviewed by other auditors. Therefore, our report expressed herein, insofar as it relates to the amounts and the information disclosed in Note 13 included in respect of these subsidiaries, is based solely on the reports of the other auditors. Total assets of these subsidiaries included in the Group’s consolidated financial statements amounted to NT$2,445,953 thousand and NT$1,977,829 thousand, constituting 0.6% and 0.5% of the consolidated total assets of the Group as at September 30, 2023 and 2022, respectively, and sales revenue of these subsidiaries included in the Group’s consolidated financial statements amounted to NT$405,543 thousand and NT$477,893 thousand, constituting 0.7% and 1.0% of the consolidated total sales revenue of the Group for the three-month periods then ended, respectively, and sales revenue of these subsidiaries included in the Group’s consolidated financial statements amounted to NT$1,311,588 thousand and NT$1,399,395 thousand, constituting 0.8% and 0.8% of the consolidated total sales revenue of the Group for the nine-month periods then ended, respectively.

PricewaterhouseCoopers, Taiwan October 26, 2023

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

~3~

INNOLUX CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

SEPTEMBER 30, 2023, DECEMBER 31, 2022 AND SEPTEMBER 30, 2022

(Expressed in thousands of New Taiwan dollars)

Assets	Notes	September 30, 2023
			December 31, 2022 September 30, 2022
Current Assets 1100 Cash and cash equivalents 1110 Financial assets at fair value through profit or loss - current 1136 Financial assets at amortized cost - current 1170 Accounts receivable, net 1180 Accounts receivable, net - related parties 1200 Other receivables 130X Inventory 1410 Prepayments 1479 Other current assets 11XX Total current assets Non-current assets 1510 Financial assets at fair value through profit or loss - non- current 1517 Financial assets at fair value through other comprehensive income - non-current 1535 Financial assets at amortized cost - non-current 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 1990 Other non-current assets 15XX Total non-current assets 1XXX Total assets
	6(1) 6(2) 6(4) 6(5) 7	$ 46,397,201 7,259,507 41,121,340 35,782,716 854,523	$ 68,490,588 $ 47,992,107 385,503 14,004,454 22,238,541 48,226,042 32,877,767 40,239,702 714,522 839,244 1,995,830 2,226,019 35,917,279 43,045,963 1,757,532 2,672,260 924,103 469,801 165,301,665 199,715,592 4,841,428 4,879,274 5,331,006 5,307,747 2,871,573 3,229,464 1,536,817 1,677,123 157,533,518 157,484,168 4,789,753 4,905,419 443,866 450,813 17,511,360 17,508,481 3,547,360 3,935,808 20,033,150 23,228,601 218,439,831 222,606,898 $ 383,741,496 $ 422,322,490
	6(6) 8	1,632,639 35,910,037 1,508,225 65,217
		170,531,405

	6(2)	5,102,729
	6(3) 6(4) 6(7)	5,367,664 17,849,465 744,830
	6(8), 7 and 8 6(9) 6(10) 6(11) 6(8)，6(15)，8 and 9	152,691,459 4,246,661 423,024 17,509,722 2,953,647 18,524,342
		225,413,543
		$ 395,944,948

(Continued)

~4~

INNOLUX CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS SEPTEMBER 30, 2023, DECEMBER 31, 2022 AND SEPTEMBER 30, 2022

(Expressed in thousands of New Taiwan dollars)

Notes	September 30, 2023	December 31, 2022 September 30, 2022	December 31, 2022 September 30, 2022

6(12) 6(2) 7 6(13) and 7 6(16) and 9 6(14)	$ 350,000 399,689	$ 425,000	$ 3,620,894
		329,181 35,612,347 1,161,824 31,947,840 2,453,028 5,668,367 662,818 8,774,740 5,687,868	2,158,171 40,654,014 1,447,887 41,787,768 2,391,182 5,696,326 651,454 8,771,184 5,235,622
	42,893,025 1,608,375
	26,242,758
	2,099,609
	3,207,035
	637,243
	38,157,100
	5,238,177
	120,833,011	92,723,013	112,414,502

6(14)	31,585,131 1,546,312 3,246,151 4,173,339	26,838,109 1,570,091 3,882,389 5,733,174	31,215,809 2,226,866 4,032,010 6,031,027
	40,550,933	38,023,763	43,505,712
	161,383,944	130,746,776	155,920,214

6(17)	90,786,334		95,564,562 103,296,944 13,811,763 3,204,136 55,153,389 (4,547,176) (602,916)
		95,564,562
6(18) 6(19)	103,478,871	103,312,414

	13,811,763	13,811,763
	5,565,152 24,983,713	3,204,136 42,750,417
6(20)	(4,356,945)	(5,565,152)
6(17)	(580,291)	(602,916)
	233,688,597 872,407	252,475,224	265,880,702 521,574
		519,496
	234,561,004	252,994,720	266,402,276
	$ 395,944,948	$ 383,741,496	$ 422,322,490

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

~5~

INNOLUX CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE-MONTH AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2023 AND 2022 (Expressed in thousands of New Taiwan dollars, except for earnings (loss) per share amounts)

Items			Nine months ended September 30	Nine months ended September 30
	Three months ended September 30
	2023	2022	2023 2022
4000 Sales revenue 5000 Operating costs 5900 Net operating margin (loss) Operating expenses 6100 Selling expenses 6200 General and administrative expenses 6300 Research and development expenses 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 7060 Share of profit of associates and joint ventures accounted for under equity method 7000 Total non-operating income and expenses 7900 Loss before income tax 7950 Income tax expense 8200 Loss for the period	$ 57,653,668	$ 48,015,256	$ 158,336,334	$ 175,802,862
	(53,509,853) 4,143,815 (716,864) (1,838,499) (3,173,418) (5,728,781) (1,584,966) 524,386 971,339 (821,529) (513,130) 76,940 238,006 (1,346,960) (538,505) $ (1,885,465)	(57,015,215)	(157,047,523)	(175,543,368)
		(8,999,959)	1,288,811	259,494
			(2,364,365)
		(938,622) (2,084,124) (3,360,300)		(2,785,082) (6,292,217) (10,059,433)
			(5,410,835) (9,048,442)
		(6,383,046)	(16,823,642)	(19,136,732)
		(15,383,005)	(15,534,831)	(18,877,238)

		416,615 1,709,239 1,238,035 (229,057) 27,440	1,815,145 2,507,035 (965,780) (1,295,067) 54,272	968,845 4,707,853 (422,279) (669,842) 20,122
		3,162,272	2,115,605	4,604,699
		(12,220,733)	(13,419,226) (1,943,449)	(14,272,539)
		(498,790)		(1,256,326)
		$ (12,719,523)	$ (15,362,675)	$ (15,528,865)

(Continued)

~6~

INNOLUX CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE-MONTH AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2023 AND 2022

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

8311 8316	Items Other comprehensive income (net) Components of other comprehensive (loss) income that will not be reclassified to profit or loss Remeasurement of defined benefit plans Unrealized (losses) gains on financial assets at fair value through other comprehensive income	Notes 6(15) 6(20)	Three months ended September 30	Three months ended September 30	Nine months ended September 30	Nine months ended September 30
			2023	2022	2023 2022
			$ — (276,018)		$ — $ 232,321
				$ —		$ 232,321
				197,846	(500,484) (4,618,386)
8320	Share of other comprehensive income of associates and joint ventures accounted for using equity method, components of other comprehensive income that will not be reclassified to profit or loss	6(7)(20)	—	10,655	—	21,107
8349 8310	Income tax related to components of other comprehensive income (loss) that will not be reclassified to profit or loss	6(28)	59,455 (216,563) 3,572,747 (43,272) 3,529,475 $ 3,312,912 $ 1,427,447 $ (1,898,439) $ 12,974 $ 1,410,165 $ 17,282 $ (0.21)	(124,489)	88,446	388,521
	Other comprehensive (loss) income that will not be reclassified to profit or loss Components of other comprehensive income that will be reclassified to profit or loss Financial statements translation differences of foreign operations Share of other comprehensive (loss) income of associates and joint ventures accounted for under equity method Other comprehensive income that will be reclassified to profit or loss Other comprehensive income (loss) for the period, net of tax Total comprehensive (loss) income for the period (Loss) profit attributable to: Owners of the parent Non-controlling interest Other comprehensive (loss) income attributable to: Owners of the parent Non-controlling interest Loss per share (in dollars) Basic loss per share	6(20) 6(7)(20) 6(29)		84,012	(412,038) (3,976,437)
				1,149,863	1,643,798	2,690,090
8361 8370 8360 8300
				61,144	(25,211)	129,942
				1,211,007	1,618,587	2,820,032
				$ 1,295,019	$ 1,206,549	$ (1,156,405)
8500				$ (11,424,504)	$ (14,156,126)	$ (16,685,270)

8610 8620				$ (12,746,291)	$ (15,405,688)	$ (15,596,821)
				$ 26,768	$ 43,013	$ 67,956

8710				$ (11,452,960)	$ (14,197,481)	$ (16,754,004)
8720				$ 28,456	$ 41,355	$ 68,734

9750				$ (1.27)	$ (1.64)	$ (1.50)

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

~7~

INNOLUX CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2023 AND 2022

(Expressed in thousands of New Taiwan dollars)

2022 Balance at January 1 (Loss) profit for the period Other comprehensive income (loss) for the period Total comprehensive income (loss) Appropriations of 2021 earnings: Legal reserve Special reserve Cash dividends	Notes				Equity a	ttributable to own	s of the parent	s of the parent			Non-controlling interests Total $ 449,531 $304,796,931 67,956 (15,528,865) 778 (1,156,405) 68,734 (16,685,270) — — — — — (11,087,601)
		Share Capital	Capital surplus		Retained Earnings		Other EquityInterest		Treasury shares	Total
		Common stock		Legal reserve	Special reserve	Unappropriated retained earnings	Financial statements translation differences of foreign operations	Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income
	6(20) 6(19)	$105,596,201	$103,287,482	$8,062,551	$6,059,671	$84,545,631	$ (9,862,144)	$ 6,658,008	$ —	$304,347,400
		— —	— —	— —	— —	(15,596,821) 185,857	— 2,819,254	— (4,162,294)	— —	(15,596,821) (1,157,183)
		—	—	—	—	(15,410,964)	2,819,254	(4,162,294)	—	(16,754,004)
		— — —	— — —	5,749,212 — —	— (2,855,535) —	(5,749,212) 2,855,535 (11,087,601)	— — —	— — —	— — —	— — (11,087,601)
Capital reduction by cash	6(17)	(10,031,639)	—	—	—	—	—	—	47,500	(9,984,139)	— (9,984,139)
Recognition of change in equity of associates in proportion to the Group's ownership	6(18)	—	247	—	—	—	—	—	—	247	— 247
Recognition of changes in ownership interests in subsidiaries	6(18)	—	(1,795)	—	—	—	—	—	—	(1,795)	19,242 17,447
Purchase of treasury shares Decrease in non-controlling interests	6(17)	— —	— —	— —	— —	— —	— —	— —	(650,416) —	(650,416) —	— (650,416) (15,933) (15,933)
Others	6(18)	—	11,010	—	—	—	—	—	—	11,010	— 11,010
Balance at September 30		$95,564,562	$103,296,944	$13,811,763	$3,204,136	$55,153,389	$ (7,042,890)	$ 2,495,714	$(602,916)	$265,880,702	$ 521,574 $266,402,276
2023 Balance at January 1		$95,564,562	$103,312,414	$13,811,763	$3,204,136	$42,750,417	$ (8,173,822)	$ 2,608,670	$(602,916)	$252,475,224	$ 519,496 $252,994,720
(Loss) profit for the period Other comprehensive income (loss) for the period Total comprehensive income (loss)	6(20)	— —	— —	— —	— —	(15,405,688) —	— 1,620,245	— (412,038)	— —	(15,405,688) 1,208,207	43,013 (15,362,675) (1,658) 1,206,549 41,355 (14,156,126)
		—	—	—	—	(15,405,688)	1,620,245	(412,038)	—	(14,197,481)
Appropriation of 2022 earnings:	6(19)
Special reserve		—	—	—	2,361,016	(2,361,016)	—	—	—	—	— —
Capital reduction by cash	6(17)	(4,778,228)	—	—	—	—	—	—	22,625	(4,755,603)	— (4,755,603)
Recognition of change in equity of associates in proportion to the Group's ownership	6(18)	—	(17,424)	—	—	—	—	—	—	(17,424)	— (17,424)
Recognition of changes in ownership interests in subsidiaries	6(18)	—	157,112	—	—	—	—	—	—	157,112	365,069 522,181
Difference between consideration and carrying amount of subsidiaries disposed	6(18)	—	11,475	—	—	—	—	—	—	11,475	9,462 20,937
Decrease in non-controlling interests	6(18)	—	—	—	—	—	—	—	—	—	(62,975) (62,975)
Others		—	15,294	—	—	—	—	—	—	15,294	— 15,294
Balance at September 30		$90,786,334	$103,478,871	$13,811,763	$5,565,152	$24,983,713	$ (6,553,577)	$ 2,196,632	$(580,291)	$233,688,597	$ 872,407 $234,561,004

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

~8~

INNOLUX CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2023 AND 2022

(Expressed in thousands of New Taiwan dollars)

	Notes 6(26) 6(26) 6(7)	2023 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Loss before tax Adjustments Adjustments to reconcile (profit) loss Depreciation and amortization		$ (13,419,226) $ (14,272,539)
		23,079,924 24,745,249 (284,424) (244,435) 19,446 5,891 (54,272) (20,122)
Net gain on financial assets or liabilities at fair value through profit or loss
Compensation cost of share-based payments
Share of profit of associates and joint ventures accounted for under equity method
Loss on disposal of property, plant and equipment	6(24)	69,486 118,236
Non-financial asset impairment loss	6(8)	1,535,377 — — 3,644 202 — 1,295,067 669,842 (1,815,145) (968,845) (187,898) (1,876,542) (14,676) (2,976,195) 445,559 2,087,525 (2,905,187) 20,288,468 (140,001) 512,131 58,391 451,896 7,242 (4,767,742) (1,295,651) (10,008,937) (5,991) (202,065) 7,280,678 (11,667,464) 446,551 (742,421) (4,624,511) (5,233,468) (2,145,185) (1,062,936) (1,977,406) (221,705) (77,802) 840,822 5,290,548 (4,541,712) (1,739,983) (1,056,663) 3,550,565 (5,598,375)
Loss on disposal of investments Loss on lease modification	6(24) 6(25) 6(22) 6(23)
Interest expense Interest income Dividend income
Foreign exchange gain
Changes in operating assets and liabilities Changes in operating assets Financial assets /liabilities at fair value through profit or loss Accounts receivable Accounts receivable - related parties Other receivables Inventories Prepayments Other current assets Changes in operating liabilities Accounts payable Accounts payable - related parties Other payables Provisions Other current liabilities Other non-current liabilities Cash inflow (outflow) generated from operations Cash paid for income tax
Net cash flows from (used in) operating activities

(Continued)

~9~

INNOLUX CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2023 AND 2022

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM INVESTING ACTIVITIES	Notes	2023 2022
		$ (7,259,159) $ (408,422) 94,851 3,379,959 (547,867) — (34,215,386) (11,683,462) (17,083,040) — 6,570,139 56,342,907 11,207,749 4,631,545 108,095 (1,157,325)
Acquisition of financial assets at fair value through profit or loss Proceeds from disposal of financial assets at fair value through profit or loss Acquisition of investments in financial assets measured at fair value through other comprehensive income
Increase in financial assets at amortized cost - current
Acquisitions of financial assets at amortized cost - non- current
Proceeds from disposal of financial assets at amortized cost
Proceeds from repayments of financial assets at amortized cost
Decrease (increase) in refundable deposits
Proceeds from capital reduction of investments accounted for under equity method		873,619 —
Increase in investment accounted for under equity method		(70,000) (86,829) (16,671,239) (15,751,401) 82,417 90,168 (103) (4,975)
Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Acquisition of intangible assets	6(30) 6(11)
Proceeds from disposal of intangible assets		140 —
Interest received Dividends received		2,268,202 834,553 188,553 1,873,408
Others		33,848 —
Net cash flows (used in) from investing activities	6(19) 6(17)	(54,419,181) 38,060,126 (75,000) 3,401,834 38,633,843 — (4,404,910) (4,403,500) (1,217,376) (638,653) (508,167) (492,232) — (11,087,601) — (650,416) 20,937 — 98,352 11,557 (62,969) (18,001) (4,755,603) — 15,294 11,010 27,744,401 (13,866,002) 1,030,828 728,612 (22,093,387) 19,324,361 68,490,588 28,667,746 $ 46,397,201 $ 47,992,107
CASH FLOWS FROM FINANCING ACTIVITIES
(Decrease) increase in short-term borrowings
Proceeds from long-term borrowings Repayments of long-term borrowings Interest paid Repayment of the principal portion of lease liabilities
Cash dividends paid Payments to acquire treasury shares
Proceeds from disposal of shares of subsidiaries
Share-based payments
Net change of non-controlling interests
Cash capital reduction	6(17)
Others	6(18)
Net cash flows from (used in) financing activities
Effect of changes in foreign currency exchange Net (decrease) increase in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period

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

~10~

INNOLUX CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2023 AND 2022

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

1. HISTORY AND ORGANIZATION

(1) Innolux Corporation (the “Company”) was organized on January 14, 2003 under the Act for Establishment and Administration of Science Parks in the Republic of China (R.O.C.). The Company was listed on the Taiwan Stock Exchange Corporation (the “TSEC”) in October 2006. The Company merged with TPO Displays Corporation and Chi Mei Optoelectronics Corporation on March 18, 2010, with the Company as the surviving entity.
(2) The Company and its subsidiaries (the “Group”) engage in the research, development, design, manufacture and sales of TFT-LCD panels, modules and monitors of LCD, color filter, and low temperature poly-silicon TFT-LCD.
THE DATE OF AUTHORIZATION FOR ISSUANCE OF THE CONSOLIDATED FINANCIAL STATEMENTS AND PROCEDURES FOR AUTHORIZATION

These consolidated financial statements were reported to the Board of Directors on October 26, 2023.

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”) 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:

2023 are as follows:
	Effective date by
	International Accounting
New Standards,Interpretations and Amendments	Standards Board
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 IAS12, ‘International tax reform - pillar two model	May 23, 2023
rules’

The above standards and interpretations have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment. (2) Effect of new issuances of or amendments to IFRSs as endorsed by the FSC but not yet adopted by

the Group

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

~11~

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

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

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

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

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

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

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

(1) Compliance statement

A. The consolidated financial statements of the Group have been prepared in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” and International Accounting Standard 34, “Interim financial reporting” that came into effect as endorsed by the FSC.
B. These financial statements should be read with the consolidated financial statements for the year ended December 31, 2022.

(2) Basis of preparation

A. Except for the following items, these consolidated financial statements have been prepared under the historical cost convention:
(a) Financial assets and financial liabilities (including derivative instruments) at fair value through profit or loss.
(b) Financial assets at fair value through other comprehensive income.

~12~

(c) Defined benefit assets recognized based on the net amount of pension fund assets less present value of defined benefit obligations.
B. The preparation of financial statements in conformity with International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations that came into effect 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 Group’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 5.

(3) Basis of consolidation

A. Basis for preparation of consolidated financial statements
The basis applied in these consolidated financial statements is consistent with that applied in the consolidated financial statements for the year ended December 31, 2022.
B. Subsidiaries included in the consolidated financial statements:

			Ownership (%)	Ownership (%)	Ownership (%)
Name of Investor	Name of Subsidiary	Main Business Activities	September 30,2023	December 31,2022	September 30,2022 Description
Innolux Corporation Innolux Holding Limited Keyway Investment Management Limited	Innolux Holding Limited Keyway Investment Management Limited Landmark International Ltd. Toppoly Optoelectronics (B.V.I.) Ltd. Innolux Hong Kong Holding Limited Yuan Chi Investment Co., Ltd. InnoJoy Investment Corporation Innolux Japan Co., Ltd. Innolux Singapore Holding Pte. Ltd. InnoCare Optoelectronics Corporation GIO Optoelectronics Corp. INStek Corporation Rockets Holding Limited Suns Holding Ltd. Foshan Innolux Logistics Ltd.	Investment holdings Investment holdings Investment holdings Investment holdings Investment holdings Investment company Investment company Investment, R&D and distribution company Investment holdings Investment, R&D, manufacturing and distribution company Investment, R&D, manufacturing and distribution company R&D, manufacturing and distribution company Investment holdings Investment holdings Warehousing company	100 100 100 100 100 100 100 54 100 51 76 40 100 100 100	100 100 100 100 100 100 100 54 100 57 76 40 100 100 100	100 — 100 — 100 — 100 — 100 — 100 — 100 — 54 — 100 — 57 (a) 76 — 40 — 100 — 100 — 100 —

~13~

			Ownership (%)	Ownership (%)	Ownership (%)
Name of Investor	Name of Subsidiary	Main Business Activities	September 30,2023	December 31,2022	September 30,2022 Description
Landmark International Ltd. Toppoly Optoelectronics (B.V.I.) Ltd. Innolux Hong Kong Holding Limited InnoJoy Investment Corporation Innolux Japan Co., Ltd. Innolux Singapore Holding Pte. Ltd. Rockets Holding Limited Suns Holding Ltd Toppoly Optoelectronics (Cayman) Ltd. CarUX Holding Limited Ultimate Fantasy Limited CARUX TECHNOLOGY PTE. LTD. CarUX Technology Hong Kong Holding Limited	Ningbo Innolux Optoelectronics Ltd. Foshan Innolux Optoelectronics Ltd. Ningbo Innolux Display Ltd. Toppoly Optoelectronics (Cayman) Ltd. Innolux Hong Kong Limited Innolux Japan Co., Ltd. CarUX Holding Limited Inno Capital Corporation Innolux USA Inc. INNOLUX OPTOELECTRONICS INDIA PRIVATE LIMITED Stanford Developments Limited Nets Trading Ltd. Warriors Technology Investments Ltd Nanjing Innolux Technology Ltd. Nanjing Innolux Optoelectronics Ltd. CARUX TECHNOLOGY PTE. LTD. Ultimate Fantasy Limited CarUX Holding Limited CarUX Technology Hong Kong Holding Limited CarUX Technology Europe B.V. CarUX Technology Taiwan Inc. CarUX Technology (Shanghai ) Ltd.	Processing company Processing company Processing company Investment holdings Distribution company Investment, R&D and distribution company Investment holdings Investment company Distribution company Distribution company Investment holdings Investment company Investment company Distribution company Processing company Investment and distribution company Investment holdings Investment holdings Investment holdings Investment, distribution, and R&D testing company R&D, manufacturing and distribution company Processing company	100 100 100 100 100 46 95 100 100 100 100 100 100 100 100 100 — 5 100 100 100 100	100 100 100 100 100 46 100 100 100 100 100 100 100 100 100 100 — — 100 100 100 100	100 — 100 — 100 — 100 — 100 — 46 — 100 — 100 — 100 — 100 — 100 — 100 — 100 — 100 — 100 — 100 — — (b) — — 100 (c) 100 (f) 100 (d) 100 (e)

~14~

			Ownership (%)	Ownership (%)	Ownership (%)
Name of Investor	Name of Subsidiary	Main Business Activities	September 30,2023	December 31,2022	September 30,2022 Description
CarUX Technology Europe B.V. Stanford Developments Limited Ningbo Innolux Optoelectronics Ltd. InnoCare Optoelectronics Corporation GIO Optoelectronics Corp.	CarUX Technology Germany GmbH Innocom Technology (Shenzhen) Co., Ltd. Ningbo CarUX Technology Ltd. InnoCare Optoelectronics Japan Co., Ltd. InnoCare Optoelectronics USA, INC. Ningbo Innolux Electronics Ltd. Innocare Optoelectronics Europe B.V. Double Star Inc. GIO (Maanshan) Optoelectronics Co., Ltd.	Testing and maintenance company Processing company Processing company Distribution company Distribution company Manufacturing and distribution company After-sales service company Investment holdings Processing company	100 100 100 100 100 100 100 100 100	100 100 100 100 100 100 100 100 100	100 (g) 100 — 100 — 100 — 100 — 100 — 100 — 100 — 100 —

  - (a) In the first quarter of 2023, InnoCare Optoelectronics Corporation issued 3,600 thousand common stock in cash capital increase before the initial listing and the Company was granted an over-allotment of 300 thousand shares, thereby decreasing the Company’s shareholding ratio from 57% to 51%.

  - (b) Ultimate Fantasy Limited was established in the first quarter of 2023 and was included in the consolidated financial statements since the date of establishment.

  - (c) Innolux Optoelectronics Hong Kong Holding Limited changed its name to CarUX Technology Hong Kong Holding Limited in the second quarter of 2023.

  - (d) CarUX Technology Inc. changed its name to CarUX Technology Taiwan Inc. in the second quarter of 2023.

  - (e) Shanghai Innolux Optoelectronics Ltd. changed its name to CarUX Technology (Shanghai) Ltd. in the second quarter of 2023.

  - (f) Innolux Europe B.V. changed its name to CarUX Technology Europe B.V. in the third quarter of 2023.

  - (g) Innolux Technology Germany GmbH changed its name to CarUX Technology Germany GmbH in the third quarter of 2023.

C. Subsidiaries not included in the consolidated financial statements: None.
D. Adjustments for subsidiaries with different balance sheet dates: None.
E. The restrictions on fund remittance from subsidiaries to the parent company: None.
F. Subsidiaries that have non-controlling interests that are material to the Group: None.
(4) Employee benefits

Except for the following additional accounting policies, the accounting policies on employee benefits are the same as those described in Note 4 of the 2022 consolidated financial statements.

~15~

Pension cost for the interim period is calculated on a year-to-date basis by using the pension cost rate derived from the actuarial valuation at the end of the prior financial year, adjusted for significant market fluctuations since that time and for significant curtailments, settlements, or other significant one-off events. Also, the related information is disclosed accordingly.

5. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF

ASSUMPTION UNCERTAINTY

For more information, please refer to Note 5 of the consolidated financial statements for the year ended December 31, 2022.

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

Cash and cash equivalents
Cash on hand, demand deposits and checking accounts	September 30,2023	December 31,2022	September 30,2022
	$ 34,242,783 9,363,988 2,500,000 290,430	$ 32,480,275 $ 25,506,268 35,733,923 22,485,839 — — 276,390 —
Time deposits
Repurchase bonds Fixed income financial products in 3 months
	$ 46,397,201	$ 68,490,588 $ 47,992,107

A. The Group associates 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. The above time deposits expire in 3 months and risks of changes in their values are remote.

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

Assets	September 30,2023	December 31,2022	September 30,2022
Current items
Financial assets mandatorily measured at fair value through profit or loss
Beneficiary certificates	$ 7,249,056	$ — $ 13,947,456
Forward foreign exchange contracts	10,451 —	342,475 56,998 43,028 —
Foreign exchange swap contracts
	$ 7,259,507	$ 385,503	$ 14,004,454
Non-current items Financial assets mandatorily measured at fair value through profit or loss

Listed stocks Unlisted stocks	$ 3,473,874	$ 3,261,581 $ 3,287,998
	1,254,149 170,864 203,842	1,271,077 114,782 193,988	1,301,894 98,958 190,424
Financial products
Convertible bonds
	$ 5,102,729	$ 4,841,428	$ 4,879,274

~16~

Liabilities	September 30,2023	December 31,2022	September 30,2022
Current items
Financial liabilities held for trading Forward foreign exchange contracts Foreign exchange swap contracts
	$ 279,542	$ 289,691	$ 1,090,005
	120,147	39,490	1,068,166
	$ 399,689	$ 329,181	$ 2,158,171

The non-hedging derivative financial assets and liabilities transaction information are as follows:

	September 30, 2023	September 30, 2023	December 31, 2022
Derivative financial assets and liabilities	Contract Amount (Notional Principal) (in thousands)	Contract Period	Contract Amount (Notional Principal) (in thousands) Contract Period
Current items	USD (sell) $ 349,500 RMB (buy) 2,544,918 RMB (sell) 723,078 USD (buy) 99,000 RMB (sell) 325,000 TWD (buy) 1,421,476 USD (sell) 30,000 JPY (buy) 4,367,411 TWD (sell) 4,870,838 JPY (buy) 22,000,000 EUR (sell) 8,200 USD (buy) 8,865 HKD (sell) 36,780 USD (buy) 4,700 USD (sell) 297,500 TWD (buy) 9,463,608 USD (sell) 177,000 TWD (buy) 5,585,671		USD (sell) $ 250,0002022/12-2023/01 RMB (buy) 1,748,133 2022/12-2023/01 RMB (sell) 550,000 2022/10-2023/01 TWD (buy) 2,417,714 2022/10-2023/01 USD (sell) 30,000 2022/12-2023/01 JPY (buy) 4,049,825 2022/12-2023/01 TWD (sell) 4,850,675 2022/10-2023/03 JPY (buy) 22,000,000 2022/10-2023/03 EUR (sell) 7,700 2022/11-2023/02 USD (buy) 7,994 2022/11-2023/02 HKD (sell) 37,500 2022/11-2023/01 USD (buy) 4,800 2022/11-2023/01 USD (sell) 871,860 2022/12-2023/02 TWD (buy) 26,492,656 2022/12-2023/02 USD (sell) 457,0002022/11-2023/02 TWD (buy) 14,022,914 2022/11-2023/02
Forward foreign exchange contracts		2023/08-2023/11
		2023/08-2023/11 2023/09-2023/10 2023/09-2023/10 2023/08-2023/11 2023/08-2023/11 2023/09-2023/10 2023/09-2023/10
Forward foreign exchange contracts Forward foreign exchange contracts Forward foreign exchange contracts Forward foreign exchange contracts Forward foreign exchange contracts
		2023/06-2024/01 2023/06-2024/01 2023/08-2023/11 2023/08-2023/11 2023/08-2023/10 2023/08-2023/10 2023/07-2023/12 2023/07-2023/12 2023/08-2023/11 2023/08-2023/11
Forward foreign exchange contracts

Forward foreign exchange contracts

Foreign exchange swap contracts

~17~

	September 30, 2022	September 30, 2022	September 30, 2022
Derivative financial assets and liabilities	Contract Amount (Notional Principal) (in thousands) Contract Period
Current items
Forward foreign exchange contracts Forward foreign exchange contracts Forward foreign exchange contracts Forward foreign exchange contracts Forward foreign exchange contracts Forward foreign exchange contracts Forward foreign exchange contracts Foreign exchange swap contracts	RMB (sell) $ 550,000 TWD (buy) 2,438,368 USD (sell) 20,000 JPY (buy) 2,831,135 TWD (sell) 4,199,500 JPY (buy) 19,000,000 EUR (sell) 14,500 USD (buy) 14,602 HKD (sell) 100,266 USD (buy) 12,800 USD (sell) 965,000 TWD (buy) 29,612,890 TWD (sell) 298,410 USD (buy) 10,000 USD (sell) 780,000 TWD (buy) 23,706,850	$ 550,000	2022/08-2022/11 2022/08-2022/11 2022/09-2022/10 2022/09-2022/10 2022/07-2022/12 2022/07-2022/12 2022/07-2022/11 2022/07-2022/11 2022/08-2022/11 2022/08-2022/11 2022/07-2022/11 2022/07-2022/11 2022/07-2022/10 2022/07-2022/10
		965,000 29,612,890 298,410 10,000
		780,000 23,706,850	2022/08-2022/11 2022/08-2022/11

The Group entered into forward foreign exchange contracts to hedge exchange rate risk of import and export proceeds in foreign currency, foreign exchange swap contracts are to meet fund procurement demand. However, these contracts are not accounted for using hedge accounting.

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

	September 30,2023	December 31,2022	September 30,2022
Non-current items
Equity instruments
Listed stocks Unlisted stocks	$ 5,149,695	$ 5,309,890	$ 5,274,277
	217,969	21,116	33,470
	$ 5,367,664	$ 5,331,006 $ 5,307,747

A. The Group has elected to classify equity instruments that are considered to be strategic investments and steady dividend income as financial assets at fair value through other comprehensive income.

B. For information on other comprehensive income for fair value change recognized by the Group for the nine-month periods ended September 30, 2023 and 2022, please refer to Note 6(20) “Other equity”.

~18~

(4) Financial assets at amortized cost

	September 30,2023	December 31,2022	September 30,2022
Current items
Principal guaranteed financial assets	$ 39,906,386	$ 15,031,515	$ 35,396,983
Corporate bonds	1,214,954	5,186,488	5,352,144
Fixed income financial products	—	2,020,538	7,476,915
	$ 41,121,340	$ 22,238,541	$ 48,226,042
Non-current items
Principal guaranteed financial assets	$ 17,849,465	$ 1,984,480	$ 2,013,109
Corporate bonds	—	887,093	1,216,355
	$ 17,849,465	$ 2,871,573 $ 3,229,464

A. The Group recognized $277,004, $267,824, $630,095 and $708,748 of interest income arising from the financial assets at amortized cost for the three-month and the nine-month periods ended September 30, 2023 and 2022, respectively.
B. The Group associates with a variety of financial institutions and counterparties all with high credit quality to disperse credit risk, so it expects that the probability of financial institution and counterparty defaults is remote.

(5) Notes receivable and accounts receivable

	September 30,2023	December 31,2022	September 30,2022
Notes receivable Accounts receivable	$ 250,010	$ 161,976	$ 139,079
	35,812,812	32,995,051	40,363,234
Total	36,062,822	33,157,027	40,502,313
Less: Allowance for uncollectible accounts	(280,106)	(279,260)	(262,611)
	$ 35,782,716	$ 32,877,767	$ 40,239,702
A. The aging analysis of accounts receivable and notes September 30,2023 Not past due $ 34,698,957 Up to 60 days 1,010,371 61 to 180 days 60,204 Over 180 days 293,290 $ 36,062,822		receivable is as follows:
	September 30,2023	December 31,2022	September 30,2022
	$ 34,698,957	$ 29,766,334 $ 33,406,327
	1,010,371 60,204 293,290	2,224,780 5,693,533 820,381 929,754 345,532 472,699
	$ 36,062,822	$ 33,157,027 $ 40,502,313

The above aging analysis was based on past due date.

B. As of September 30, 2023, December 31, 2022 and September 30, 2022, accounts receivable and notes receivable were all from contracts with customers. As of January 1, 2022, the balance of receivables from contracts with customers amounted to $60,790,780.
C. Information relating to credit risk of accounts receivable is provided in Note 12(2).

~19~

(6) Inventories

Inventories
	September 30,2023	December 31,2022	September 30,2022
Raw materials and supplies Work in progress Finished goods	$ 5,630,203	$ 5,919,722	$ 6,970,836
	14,454,013	14,418,978	15,664,041
	15,825,821	15,578,579	20,411,086
	$ 35,910,037	$ 35,917,279	$ 43,045,963

For the three-month and nine-month periods ended September 30, 2023 and 2022, the Group recognized cost of goods sold for inventories that have been sold at $53,481,916, $56,757,400, $156,983,425 and $175,121,693 and recognized net inventory loss at $27,937, $257,815, $64,098 and $421,675 due to write down of cost of scrap inventories to net realizable value, respectively.

(7) Investments accounted for under the equity method

Investments accounted for under	the equity method
	September 30,2023	December 31,2022	September 30,2022
FI Medical Device Manufacturing Co., Ltd.	$ 327,466	$ 304,356	$ 383,394
CDIB-Innolux Limited Partnership	242,994 116,018	139,072 162,329	147,462 185,884
PanelSemi Corporation
Ampower Holding Ltd. Others	49,470	904,206	925,640
	8,882	26,854	34,743
	$ 744,830	$ 1,536,817	$ 1,677,123

The operating results of the Group’s share in all individually immaterial associates are summarized below:

below:
Profit for the period from continuing operations Other comprehensive (loss) income - net of tax Total comprehensive income	For the three-month periods ended September 30, 2023 2022 $ 76,940 $ 27,440 (43,272) 71,799		For the nine-month periods ended September 30,
	2023		2023 2022
	$ 76,940 (43,272)		$ 54,272 $ 20,122 (25,211) 151,049
	$ 33,668	$ 99,239	$ 29,061 $ 171,171

~20~

(8) Property, plant and equipment

Cost: Land Buildings Machinery and equipment Other equipment			2023
	At January1	Additions	Disposals	Transfer, net exchange differences and others At September 30

	$ 4,093,726	$ —	$ —	$ — $ 4,093,726
	208,111,269 545,736,320 51,037,607 808,978,922	517,480 2,670,640 5,593	(175,972) (3,807,903) (1,574,696)	1,863,179 210,315,956 13,871,361 558,470,418 2,942,260 52,410,764
Accumulated depreciation and impairment: Buildings Machinery and equipment Other equipment Unfinished construction and equipment under acceptance		3,193,713	(5,558,571)	18,676,800 825,290,864

	(156,000,139) (467,000,256) (44,540,303) (667,540,698) 16,095,294	(5,438,198) (15,612,814) (3,040,511)	172,771 3,750,897 1,560,328	(363,771) (161,629,337) (747,570) (479,609,743) (126,354) (46,146,840) (1,237,695) (687,385,920)
		(24,091,523)	5,483,996
		12,893,041	—	(14,201,820) 14,786,515
	$ 157,533,518			$ 152,691,459

Unfinished construction and equipment under acceptance	(667,540,698) 16,095,294 $ 157,533,518	(24,091,523) 12,893,041	5,483,996 —	(1,237,695) (687,385,920) (14,201,820) 14,786,515 $ 152,691,459
Cost: Land Buildings Machinery and equipment Other equipment			2022
	At January1 $ 4,093,726 205,568,161 537,561,904 50,862,400 798,086,191 (147,599,956) (453,390,220) (44,323,458) (645,313,634) 9,835,351 $ 162,607,908	Additions $ — 473,717 2,441,554 2,522 2,917,793 (6,426,977) (14,626,524) (3,171,622) (24,225,123) 12,573,004	Disposals $ — (74,674) (2,913,594) (2,803,380) (5,791,648) 73,754 2,802,343 2,790,440 5,666,537 —	Transfer, net exchange differences and others At September 30 $ — $ 4,093,726 2,016,709 207,983,913 7,749,440 544,839,304 3,282,746 51,344,288 13,048,895 808,261,231 (512,074) (154,465,253) (1,071,930) (466,286,331) (150,178) (44,854,818) (1,734,182) (665,606,402) (7,579,016) 14,829,339 $ 157,484,168
Accumulated depreciation and impairment:
Buildings Machinery and equipment Other equipment
Unfinished construction and equipment under acceptance

A. Information about the property, plant and equipment that were pledged to others as collateral is provided in Note 8.
B. As of September 30, 2023, December 31, 2022 and September 30, 2022, the prepayments for business facilities which have not yet entered the factory (shown as ‘other non-current assets’) amounted to $934,789, $3,704,935 and $5,639,830, respectively.
C. In the second quarter of 2023, the Company implemented the impairment assessment on nonfinancial assets whose capacity utilization was extremely low. An impairment loss of $1,535,377 is recognized as the asset’s carrying amount exceeds its recoverable amount under the assessment.

~21~

(9) Leasing arrangements－lessee

A. The Group leases various assets including land, buildings and other equipment. Rental contracts are typically made for periods of 2 to 50 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, dormitory and equipment. Low-value assets comprise computer equipment.
C. The carrying amounts of right-of-use assets and the depreciation charge are as follows:

	September 30,2023	September 30,2023	December 31,2022	December 31,2022	September 30,2022
	Carryingamount		Carryingamount Carryingamount
Land Buildings	$ 4,078,145		$ 4,693,516		$ 4,823,701
	168,253		95,060		80,300
Other equipment	263		1,177 1,418
	$ 4,246,661		$ 4,789,753		$ 4,905,419

	For the three-month periods ended September 30,			For the nine-month periods ended September 30,
	2023	2022		2023 2022
	Depreciation Charge	Depreciation Charge		Depreciation Charge Depreciation Charge
Land Buildings	$ 113,386	$ 122,316		$ 356,817 $ 366,356
	16,482	10,959		47,020 30,601 946 917
Other equipment	287	301
	$ 130,155	$ 133,576		$ 404,783 $ 397,874

D. For the three-month and nine-month periods ended September 30, 2023 and 2022, the additions to right-of-use assets were $9,574, $1,914, $40,140 and $10,324, respectively.
E. The information on income and expense accounts relating to lease contracts is as follows:

	For the three-month periods ended September 30,	For the three-month periods ended September 30,	For the nine-month periods ended September 30, 2023 2022
	2023	2022
Items affecting profit or loss
Interest expense on lease liabilities	$ 17,789	$ 20,138	$ 55,920 $ 61,699
Expense on variable lease payments Expense on short-term lease contracts	47,700 15,785 7,182	31,018 17,917 23,285	140,063 104,982 45,591 50,721 21,842 51,514
Expense on leases of low- value assets

F. For the nine-month periods ended September 30, 2023 and 2022, the Group’s total cash outflow for leases were $715,852 and $730,812, respectively.

~22~

(10) Investment property

Investment property
		2023
	At January1	Additions At September 30
Cost: Land Buildings Accumulated depreciation:	$ 188,247 439,228	$ — $ 188,247 — 439,228
	627,475	— 627,475

Buildings	(183,609)	(20,842) (204,451)
	$ 443,866	$ (20,842) $ 423,024

		2022
	At January1	Additions At September 30
Cost:	$ 188,247 439,228	$ — $ 188,247 — 439,228
Land Buildings
Accumulated depreciation:	627,475	— 627,475

Buildings	(155,820)	(20,842) (176,662)
	$ 471,655	$ (20,842) $ 450,813

The fair value of the investment property held by the Group as at September 30, 2023, December 31, 2022 and September 30, 2022 was $1,700,583, $1,670,276 and $1,699,239, respectively. The amounts mentioned above represent valuation results of comparative method based on market trading information categorized within Level 3 in the fair value hierarchy.

(11) Intangible assets

A. Intangible assets are goodwill, payments for TFT-LCD related technology and royalty. Details of intangible assets are as follows:

			2023
	At January1	Additions	Disposals	Transfer, net exchange differences and others At September 30
Cost: Patents and royalty Goodwill Others	$ 8,229,854 17,117,339 4,677,996	$ — — 103	$ — — (311,742)	$ 800 $ 8,230,654 — 17,117,339 101,230 4,467,587
	30,025,189	103	(311,742)	102,030 29,815,580
Accumulated amortization and impairment:	(8,188,585) (4,325,244)	(15,246) (82,907)	— 311,602	— (8,203,831) (5,478) (4,102,027)
Patents and royalty
Others
	(12,513,829)	(98,153)	311,602	(5,478) (12,305,858)
	$ 17,511,360	$ (98,050)	$ (140)	$ 96,552 $ 17,509,722

~23~

			2022
	At January1	Additions	Disposals	Transfer, net exchange differences and others At September 30
Cost: Patents and royalty Goodwill Others	$ 8,232,454 17,117,339 4,862,691	$ — — 4,975	$ (3,000) — (302,133)	$ — $ 8,229,454 — 17,117,339 90,509 4,656,042
	30,212,484	4,975	(305,133)	90,509 30,002,835
Accumulated amortization and impairment:	(8,171,928) (4,519,962)	(14,732) (86,678)	3,000 302,133	— (8,183,660) (6,187) (4,310,694)
Patents and royalty
Others
	(12,691,890)	(101,410)	305,133	(6,187) (12,494,354)
	$ 17,520,594	$ (96,435)	$ —	$ 84,322 $ 17,508,481

B. Details of amortization of intangible assets are as follows:

	For the three-month periods ended September 30,	For the three-month periods ended September 30,	For the nine-month periods ended September 30,	For the nine-month periods ended September 30,
	2023	2022	2023 2022
Operating costs Operating expenses	$ 10,703	$ 10,249	$ 31,263	$ 29,878 71,532
	22,507	24,670	66,391
	$ 33,210	$ 34,919	$ 97,654	$ 101,410

C. The Group periodically performed impairment assessment on the recoverable amount of goodwill and property, plant and equipment, and used the value in use as the basis for calculation of the recoverable amount.The value in use was calculated based on the estimated present value of future cash flows for five years.

(12) Short-term borrowings

Short-term borrowings
Type of borrowings	September 30,2023	December 31,2022	September 30,2022 Collateral
Bank borrowings Unsecured borrowings
	$ 350,000	$ 425,000	$ 3,620,894 None
Range of interest rates	1.80%~1.83%	1.95%~2.07%	1.49%~3.50%

~24~

(13) Other payables

Other payables
	September 30,2023	December 31,2022	September 30,2022
Other personnel expenses	$ 7,004,702	$ 11,943,471	$ 11,285,264
Payables due to capital reduction	—	—	9,984,139
Payable on machinery and equipment Repairs and maintenance expense payable Utilities expense payable	4,174,843	4,759,328 2,636,678	3,911,744 2,892,460
	2,498,687
	1,478,688	1,116,532 1,254,622
Other payables	11,085,838	11,491,831	12,459,539
	$ 26,242,758	$ 31,947,840	$ 41,787,768

- (14) Long term borrowings

) Long-term borrowings
Type of borrowings	Period	September 30, 2023	December 31, 2022	September 30, 2022
Syndicated bank borrowings	2019/4/15 ~2026/3/24	$ 68,125,000	$ 35,000,000	$ 39,375,000
Unsecured borrowings	2021/12/2 ~2029/2/15	1,728,748	600,000	600,000
Secured borrowings	2021/9/22 ~2024/9/22	33,333	58,333 (45,484)	66,667 (54,674)
Less: Administrative expenses charged by syndicated banks Current portion (includes administrative expenses) Range of interest rates		(144,850)
		(38,157,100)	(8,774,740) (8,771,184)
		$ 31,585,131	$ 26,838,109	$ 31,215,809
		1.38%~4.00%	0.75%~2.26% 0.75%~1.79%

A. Please refer to Note 8 for the information on assets pledged as collateral for long-term borrowings.
B. The syndicated borrowing agreements specified that the Company shall meet covenants on current ratio, liability ratio, interest coverage, and tangible net equity, based on the Company’s annual consolidated financial statements audited by independent auditors. The Company’s financial ratios on the consolidated financial statements for the year ended December 31, 2022 are in compliance with the covenants on the syndicated borrowing agreement.
C. For repayment of borrowings from financial institutions and financing mid-term working capital fund, the Board of Directors approved the signing of a syndicated borrowing with financial institution in the amount of $37.5 billion on May 5, 2020. The borrowing has been drawn down in the first quarter of 2023.
D. For repayment of existing financial liabilities, financing mid-term working capital fund and sufficing green expenditures, the Board of Directors approved the signing of a syndicated borrowing with financial institution in the amount of $40 billion on July 27, 2023. As of September 30, 2023, the borrowing has yet to be drawn down.

~25~

(15) Pensions

A. Defined benefit pension plans
(a) The Company and its domestic subsidiaries have a defined benefit pension plan in accordance with the Labor Standards Law, covering all regular employees’ service years prior to the enforcement of the Labor Pension Act on July 1, 2005 and service years thereafter of employees who chose to continue to be subject to the pension mechanism under the Law.
(b) In February 2023, the Science Park, Ministry of Science and Technology approved the Company to stop contributing to the retirement fund temporarily.
(c) In the first half of 2022, the Company reached an agreement with part of its employees for terminating their defined benefit pension plans and settled its defined benefit obligation. Total pension payment paid from the plan assets was $2,166,345. Accordingly, the Company re-assessed the actuarial assumptions and recognized gain on the settlement amounting to $127,244 and gain on remeasurement of net defined benefit liability amounting to $232,321.
- For relevant actuarial assumptions, please refer to Note 6(16) in the second quarter consolidated financial statements of 2022.
B. Defined contribution pension plans
(a) Effective July 1, 2005, the Company and its domestic subsidiaries have established a defined contribution pension plan (the “New Plan”) under the Labor Pension Act (the “Act”), covering all regular employees with R.O.C. nationality.
(b) The Company’s foreign subsidiaries have provided the pension in accordance with statutory laws and regulations
C. The pension costs under the abovementioned pension plans of the Group for the three-month and nine-month periods ended September 30, 2023 and 2022 were $481,267, $479,711, $1,424,171 and $1,375,313, respectively.

(16) Provisions-current

Provisions-current
At January 1, 2023 Additions during the period Used (unused amounts reversed) during the period Effect of change in exchange rate At September 30, 2023	Warranty	Litigation and others	Total
	$ 2,682,510	$ 2,985,857	$ 5,668,367
	433,356	208,487	641,843
	(1,524,347)	(1,579,691) (3,104,038)
	863	—	863
	$ 1,592,382	$ 1,614,653	$ 3,207,035

A. Warranty

The Group provides warranty on TFT-LCD panel products sold. Provision for warranty is estimated based on historical warranty data of TFT-LCD panel products.

B. Litigation and others

Litigation and other provisions for the Group are related to patents of TFT-LCD panel products and anti-trust litigations. For information on estimation of provisions, please refer to Note 9(1).

~26~

(17) Share capital

A. As of September 30, 2023, the Company’s authorized and outstanding capital were $120,000,000 and $90,786,334, with a par value of $10 (in dollars) per share, respectively. All proceeds from shares issued have been collected.

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

	2023 2022 Number of ordinary shares(in thousand units) Number of ordinary shares(in thousand units) 9,511,206 10,559,620 (475,560) (998,414) — (50,000) 9,035,646 9,511,206

At January 1
Cash capital reduction
Shares retired At September 30

B. Capital reduction

To adjust the capital structure, the stockholders of the Company during their meeting on May 31, 2023 resolved to implement a capital reduction and return capital in cash to stockholders. The registration of the capital reduction was approved by the Taiwan Stock Exchange in accordance with the Letter No.Tai-Zheng-Shang-Yi-Zi-1121803192, dated July 10, 2023. The capital reduction amounted to $4,778,228 for a total of 477,823 thousand shares, and the ratio of capital reduction was 5%. The effective date of the capital reduction was July 12, 2023. The change of registration was completed on July 20, 2023. The effective date of the replacement of shares due to the capital reduction was August 25, 2023.

To adjust the capital structure, the stockholders of the Company during their meeting on June 24, 2022 resolved to implement a capital reduction and return capital in cash to stockholders. The registration of the capital reduction was approved by the Taiwan Stock Exchange in accordance with the Letter No.Tai-Zheng-Shang-Yi-Zi-1111803817, dated August 10, 2022. The capital reduction amounted to $10,031,639 for a total of 1,003,164 thousand shares, and the ratio of capital reduction was 9.5%. The effective date of the capital reduction was August 15, 2022. The change of registration was completed on August 23, 2022. The effective date of the replacement of shares due to the capital reduction was October 7, 2022.

C. Treasury shares

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

	2023		2022	2022
	Quantity (in thousand units)	Book value	Quantity (in thousand units) Book value
At January 1 Retirement for the period Cash capital reduction At September 30	45,250	$ 602,916	—$ —
	—	—	50,000 650,416
	(2,263)	(22,625)	(4,750)	(47,500)
	42,987	$ 580,291	45,250 $ 602,916

The Company acquired a total of 50,000 thousand treasury shares at $650,416 to be

~27~

reissued to the employees in the second quarter of 2022. After the cash capital reduction declaration became effective and the change registration was completed in the third quarter of 2023 and 2022, the Company eliminated 2,263 thousand shares and 4,750 thousand shares and reduced cost of treasury shares by $22,625 and $47,500, respectively.

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

  - (c) Pursuant to the R.O.C. Securities and Exchange Act, treasury shares should not be pledged as collateral and shareholder's rights should not be enjoyed before it is reissued.

  - (d) 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 cancelled.

(18) 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 capitalized mentioned above should not exceed 10% of the paid-in capital each year. Accumulated deficit shall first be covered by retained earnings before the capital reserve can be used to cover the accumulated deficit.

At January 1 Recognition of changes in ownership interests in subsidiaries Recognition of change in equity of associates in proportion to the Group's ownership			2023	2023
	Share premium	Treasury share transactions	Changes in ownership interests in subsidiaries	Share of profit (loss) of associates accounted for under equity method	Difference between proceeds on acquisition or disposal of equity interest in a subsidiary and its carrying amount Total
	$ 100,006,693 — —	$ 3,183,414 — —	$ 16,653 157,112 —	$ 41,524 — (17,424)	$ 64,130 $ 103,312,414 — 157,112 — (17,424)
Difference between consideration and carrying amount of subsidiaries disposed	—	—	—	—	11,475	11,475
Others At September 30	15,294	—	—	—	— 15,294
	$ 100,021,987	$ 3,183,414	$ 173,765	$ 24,100	$ 75,605 $ 103,478,871

~28~

2022

At January 1 Recognition of changes in ownership interests in subsidiaries Recognition of change in equity of associates in proportion to the Group's ownership	Share premium	Treasury share transactions	Changes in ownership interests in subsidiaries	Share of profit (loss) of associates accounted for under equity method	Difference between proceeds on acquisition or disposal of equity interest in a subsidiary and its carrying amount Total	Difference between proceeds on acquisition or disposal of equity interest in a subsidiary and its carrying amount Total
	$ 99,992,177 — —	$ 3,183,414 — —	$ 6,484 (1,795) —	$ 41,277 — 247	$ 64,130	$ 103,287,482
					— — —	(1,795) 247
Others At September 30	11,010	—	—	—		11,010
	$ 100,003,187	$ 3,183,414	$ 4,689	$ 41,524	$ 64,130	$ 103,296,944

(19) Retained earnings

A. Under the Company’s Articles of Incorporation, the current year’s earnings, if any, shall first be offset against prior years’ operating losses, then set aside 10% of the remaining amount as legal reserve (until the legal reserve equals the paid-in capital). Preferred dividend shall be distributed after setting aside or reversing a special reserve according to related regulations. The appropriation of the remaining amount along with the unappropriated earnings from previous years shall be proposed by the Board of Directors and resolved by the shareholders. The net decrease in other equity accumulated in prior periods should be appropriated from prior period's undistributed earnings to a special reserve of the same amount, and if there is a deficiency, the same amount should be appropriated from the post-tax profit for the period plus the amount of items other than post-tax profit for the period, and the amount was included in the unappropriated earnings for the period.
Depending on the Company's future long-term financial planning, investment environment, industry competition, capital expenditure budget, capital requirements and protection of shareholders' rights, dividends should account for at less 20% of the distributable earnings for the year. However, as the distributable earnings is lower than 2% of the paid-in capital, the Company may choose not to distribute dividends and transferred dividends to the retained earnings. Earnings shall be preferably distributed using cash dividends and may also be distributed using stock dividends. The ratio for cash dividends shall not be less than 50% of the total amount of dividends distributed. The aforementioned dividend distribution rate may be adjusted based on financial, business and operational factors.
B. 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 balance of the reserve exceeds 25% of the Company’s paid-in capital.

~29~

C. The 2022 deficit compensation which was approved at the stockholders’ meeting in May 2023 and the appropriation of 2021 net income which was approved at the stockholders’ meeting in June 2022 are as follows:

	Year ended December 31,	Year ended December 31,	Year ended December 31,	Year ended December 31,
	2022		2021
	Amount	Dividends per share(in dollars)	Amount Dividends per share(in dollars)
Legal reserve Provision for (reversal of) special reserve Cash dividends	$ —		$ 5,749,212 (2,855,535)
	2,361,016
	—	$ —	11,087,601	$ 1.05
	$ 2,361,016		$ 13,981,278

(20) Other equity items

(20)	Other equity items
(21)					2023
			Currency translation $ (8,173,822) — 1,645,456 (25,211) — $ (6,553,577)		Financial assets at fair value through other comprehensive income Total $ 2,608,670 $ (5,565,152) (500,484) (500,484) — 1,645,456 — (25,211) 88,446 88,446 $ 2,196,632 $ (4,356,945) 2022
	At January 1 Revaluation - gross Currency translation differences
	Share of other comprehensive income of associates
	Effect of income tax At September 30

			Currency translation $ (9,862,144) — 2,689,312 129,942 — $ (7,042,890)
	At January 1 Revaluation - gross Currency translation differences Share of other comprehensive income of associates Effect of income tax				$
	At September 30				$
	Operating income
			For the three-month periods ended September 30,
			2023	2022		2023 2022
	TFT-LCD products	$	57,653,668	$ 48,015,256		$ 158,336,334 $ 175,802,862

The Group derives revenue from the transfer of goods at a point in time.

~30~

(22) Interest income

Interest income
	For the three-month periods ended September 30, 2023 2022		For the nine-month periods ended September 30,
		2022	2023 2022
Interest income from bank deposits	$ 247,382	$ 148,791	$ 1,185,050 $ 260,097
Interest income from financial assets at amortized cost	277,004	267,824	630,095	708,748
	$ 524,386	$ 416,615	$ 1,815,145 $ 968,845

(23) Other income

(23)	deposits Interest income from financial assets at amortized cost Other income	$ 247,382 $ 148,791 277,004 267,824 $ 524,386 $ 416,615	$ 247,382 $ 148,791 277,004 267,824 $ 524,386 $ 416,615	$ 247,382 $ 148,791 277,004 267,824 $ 524,386 $ 416,615	$ 247,382 $ 148,791 277,004 267,824 $ 524,386 $ 416,615	$ 1,185,050 $ 260,097 630,095 708,748 $ 1,815,145 $ 968,845	$ 1,185,050 $ 260,097 630,095 708,748 $ 1,815,145 $ 968,845
(24) (25)	Service revenue Dividend income Grant revenue Other income Other gains and losses	For the three-month periods ended September 30,				For the nine-month periods ended September 30,
		2023		2022		2023 2022
		$ 172,662		$ 546,637		$ 595,580 $ 1,133,435
		24,624		819,042		187,898 1,876,542
		32,395		74,625		140,999 711,073 1,582,558 986,803
		741,658		268,935
		$ 971,339		$ 1,709,239		$ 2,507,035 $ 4,707,853
						For the nine-month periods ended September 30,
		For the three-month periods ended September 30,
		2023	2022			2023 2022
	Net loss on financial assets and liabilities at fair value through profit or loss	$ (1,175,883)	$ (2,265,018)		$	(2,549,980) $ (7,899,306)
	Net currency exchange gain Loss on disposal of investments Loss on disposal of property, plant and equipment Other losses	701,398 — (46,552) (300,492)	3,587,183 (3,644) (30,978) (49,508)			2,043,747 — (69,486) (390,061)	7,674,014 (3,644) (118,236) (75,107)
	Finance costs	$ (821,529)	$ 1,238,035		$	(965,780) $ (422,279)

Loss on disposal of property, plant and equipment Other losses Finance costs	(46,552) (30,978) (300,492) (49,508) $ (821,529) $ 1,238,035	(46,552) (30,978) (300,492) (49,508) $ (821,529) $ 1,238,035	(69,486) (118,236) (390,061) (75,107) $ (965,780) $ (422,279)	(69,486) (118,236) (390,061) (75,107) $ (965,780) $ (422,279)
	For the three-month periods ended September 30,		For the nine-month periods ended September 30,
	2023	2022	2023 2022
Interest expense: Bank borrowings Others
	$ 495,319	$ 208,556	$ 1,239,081 $ 607,393
	17,811	20,501	55,986	62,449
	$ 513,130	$ 229,057	$ 1,295,067 $ 669,842

~31~

(26) Expenses by nature

Expenses by nature
	For the three-month periods ended September 30,		For the nine-month periods ended September 30,
	2023	2022	2023 2022
Employee benefit expense: Salaries and other short-term employee benefits Share-based payments Post-employment benefits Depreciation Amortization
	$ 9,142,056	$ 10,136,645	$ 25,968,299 $ 32,101,490
	737 481,267 7,615,374 33,210	1,395 479,711 7,880,343 34,919	19,446 1,424,171 22,982,270 97,654	5,891 1,375,313 24,643,839 101,410
	$ 17,272,644	$ 18,533,013	$ 50,491,840	$ 58,227,943

(27) Employees’ compensation and directors’ remuneration

A. According to the Articles of Incorporation of the Company, a ratio of profit of the current year distributable, after covering accumulated losses, shall be distributed as employees' compensation and directors’ remuneration. The ratio shall not be lower than 5% for employees’ compensation and shall not be higher than 0.1% for directors’ remuneration.
B. For the three-month and nine-month periods ended September 30, 2023 and 2022, the Company incurred a net loss, and thus did not accrue employees’ compensation and directors’ remuneration.

For the year ended December 31, 2022, the Company incurred net loss and had an accumulated deficit. Thus, there was no distribution of employees' compensation and directors’ remuneration as resolved by the Board of Directors on February 14, 2023.

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

(28) Income tax

A. Income tax expense
(a) Components of income tax expense:

For the three-month periods ended September 30, 2023 2022	For the three-month periods ended September 30, 2023 2022	For the nine-month periods ended September 30,
2023		2023 2022
$ 420,562	$ 519,100	$ 1,375,639 $ 1,335,687
— (7,743) 412,819 125,686	— 1,034 520,134 (21,344)	6,438 5,818 (97,008) (173,492) 1,285,069 1,168,013 658,380 88,313
$ 538,505	$ 498,790	$ 1,943,449 $ 1,256,326

~32~

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

(b)The income tax charge / (credit) relating to components of other comprehensive income is as follows:	(b)The income tax charge / (credit) relating to components of other comprehensive income is as follows:	(b)The income tax charge / (credit) relating to components of other comprehensive income is as follows:	(b)The income tax charge / (credit) relating to components of other comprehensive income is as follows:
For the three-month periods ended September 30, For the nine-month periods ended September 30, 2023 2022 2023 2022 Changes in fair value of financial assets at fair value through other comprehensive income $ (59,455)$124,489 $ (88,446)$(434,985) Remeasurements of defined benefit obligations — — — 46,464 Income tax expense $ (59,455)$124,489 $ (88,446)$(388,521) B. The Company’s income tax returns through 2021 have been assessed and approved by the Tax Authority. Loss per share
	For the three-monthperiod ended September 30,2023
	Amount after tax		Weighted average number of ordinary shares outstanding (shares in thousands) Loss per share (in dollars)
Basic loss per share Loss attributable to ordinary shareholders of the parent	$ (1,898,439)		9,092,506 $ (0.21)

	For the three-monthperiod ended September 30,2022
	Amount after tax		Weighted average number of ordinary shares outstanding (shares in thousands) Loss per share (in dollars)
Basic loss per share Loss attributable to ordinary shareholders of the parent	$ (12,746,291)		9,999,561 $ (1.27)

	For the nine-monthperiod ended September 30,2023
	Amount after tax	Weighted average number of ordinary shares outstanding (shares in thousands) Loss per share (in dollars)
Basic loss per share Loss attributable to ordinary shareholders of the parent	$ (15,405,688)	9,370,106 $ (1.64)

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

(29) Loss per share

~33~

For the nine-month period ended September 30, 2022

	Amount after tax	Weighted average number of ordinary shares outstanding (shares in thousands) Loss per share (in dollars)
Basic loss per share Loss attributable to ordinary shareholders of the parent	$ (15,596,821)	10,368,694 $ (1.50)

(30) Supplemental cash flow information A. Investing activities with partial cash payments:

	For the nine-monthperiods ended September 30,
	2023 2022
Purchase of property, plant and equipment Add: Opening balance of payable on equipment Less: Ending balance of payable on equipment Cash paid during the period	$ 16,086,754 $ 15,490,797
	4,759,328 4,172,348 (4,174,843) (3,911,744)
	$ 16,671,239 $ 15,751,401

RELATED PARTY TRANSACTIONS (1) Names and relationship of related parties

Less: Ending balance of payable on equipment Cash paid during the period $ ELATED PARTY TRANSACTIONS ) Names and relationship of related parties		(4,174,843) (3,911,74 16,671,239 $ 15,751,40
Names of relatedparties		Relationshipwith the Group
Hon Hai Precision Industry Co., Ltd. and its subsidiaries		Other related party
PanelSemi Corporation and its subsidiaries		Associate
InnVasLinx Inc.		Associate

(2) Significant related party transactions A. Operating revenue

Operating revenue
	For the three-month periods ended September 30,		For the nine-month periods ended September 30,
	2023	2022	2023 2022
Sales of goods: Other related parties Associates
	$ 593,674 107,452	$ 523,428	$ 1,395,097	$ 2,143,521
		119,259	289,524	329,733
	$ 701,126	$ 642,687	$ 1,684,621	$ 2,473,254

The collection period was mainly 30~90 days upon shipment or on a monthly-closing basis to related parties. The sales prices and the trading terms to related parties above were not significantly different from those of sales to third parties.

~34~

B. Purchases of goods

Purchases of goods
	For the three-month periods ended September 30,		For the nine-month periods ended September 30,
	2023	2022	2023 2022
Purchases of goods: Other related parties Associates
	$ 1,091,200 70,059	$ 927,555 13,578	$ 3,190,967	$ 3,696,754
			97,756	199,111
	$ 1,161,259	$ 941,133	$ 3,288,723	$ 3,895,865

The payment term was 30~120 days to related parties after transaction date, and 30~180 days to non-related parties after delivery or on a monthly-closing basis. The purchase prices and the payment terms from related parties above were not materially different from those of purchases from third parties.

C. Receivables from related parties

from third parties. Receivables from related parties
	September 30, 2023	December 31, 2022	September 30, 2022
Accounts receivable: Other related parties Associates
	$ 789,743	$ 606,765	$ 750,652
	64,780	107,757	88,592
	$ 854,523	$ 714,522	$ 839,244

The receivables from related parties arise mainly from sales transactions. The receivables are due 30~90 days after the date of sale. The receivables are unsecured in nature and bear no interest. D. Payables to related parties

Payables to related parties
	September 30, 2023	December 31, 2022	September 30, 2022
Accounts payable: Other related parties Associates
	$ 1,527,325	$ 1,072,075	$ 1,357,777
	81,050	89,749	90,110
	$ 1,608,375	$ 1,161,824	$ 1,447,887

The payables to related parties arise mainly from purchase transactions and are due 30~120 days after the date of purchase. The payables bear no interest.

E. Property transactions

Purchase of property

(a) Acquisition of property, plant and equipment:

	For the three-month periods ended September 30, 2023 2022	For the three-month periods ended September 30, 2023 2022	For the nine-month periods ended September 30,	For the nine-month periods ended September 30,
		2022	2023 2022
Other related parties	$ 303 4,429	$ 3,099 (61)	$ 3,491	$ 9,397
Associates (Note)			16,941	11,199
	$ 4,732	$ 3,038	$ 20,432	$ 20,596

Note: Effect on exchange rate changes were included for the three months ended September 30, 2022.

~35~

(b) Period-end balances arising from purchases of property (shown as ‘Other payables’):

	September 30, 2023	December 31, 2022	September 30, 2022
Other related parties	$ —	$ 791	$ 2,854

Disposal of other assets

For the three-month and nine-month periods ended September 30, 2023 and 2022, the Company and its subsidiaries sold certain other assets to associates and recognized gain on disposal of $0, $12,420, $0 and $15,453, respectively.

(3) Key management compensation

	For the three-month periods ended September 30,	For the three-month periods ended September 30,	For the nine-month periods ended September 30,	For the nine-month periods ended September 30,
	2023	2022	2023 2022
Salaries and other short-term employee benefits Share-based payments Post-employment benefits	$ 23,465	$ 23,498	$ 74,644	$ 72,792
	64 359	128 349	302 1,092	773 1,079
	$ 23,888	$ 23,975	$ 76,038	$ 74,644

8. PLEDGED ASSETS

The Group’s assets pledged as collateral are as follows:

Book value

		Book value
Pledged asset	September 30, 2023	December 31, 2022	September 30, 2022 Purpose
Property, plant and equipment	$ 45,724,348	$ 53,818,998 15,620 846,036	$ 54,542,441 Long-term borrowings 50,430 Tariff guarantee and performance bond 874,687 Litigation guarantee
Other assets - others
-Time deposits	16,120
-Refundable deposits	—
	$ 45,740,468	$ 54,680,654	$ 55,467,558

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACT COMMITMENTS

－ (1) Contingencies Significant Litigations

A. The Company’s subsidiary in U.S. received a civil complaint from the government of Puerto Rico in September 2018, claiming that the company, together with other defendants of Taiwan, Japan and South Korea TFT - LCD companies, had unjustified enrichment from the TFT-LCD price conspiracy in 2006 and requested monetary compensation. The U.S. subsidiary of the Company retained lawyers to handle the lawsuit. On October 31, 2022, the court dismissed the case for lack of diligent prosecution.
B. Bishop Display Tech LLC (Bishop) filed a lawsuit against the Company with the United States District Court for the Eastern District of Texas on October 3, 2022, alleging infringement of its US patent. The Company received the service of a complaint on October 28, 2022 and subsequently filed an answer to the complaint on January 26, 2023. The two parties have

~36~

reached a settlement in September 2023. As the lawsuit will be revoke, it has no impact on the Company’s operations and financial position.
C. Polaris PowerLED Technologies, LLC (Polaris) filed a lawsuit against the Company and the Company’s American subsidiary with the United States District Court for the Central District of California on May 8, 2023, alleging infringement of its US patent. The Company received the service of a complaint on May 22, 2023 and subsequently filed an answer to the complaint on July 24, 2023. Currently, the lawsuit has no impact on the Company’s operations and financial position.
D. The Company had assessed and recognized related losses and liabilities as shown in ‘provisionscurrent’ for the aforementioned investigation relating to anti-trust laws and patent litigation.

(2) Commitments

A. Capital expenditures contracted for at the balance sheet date but not yet incurred are as follows:

Property, plant and equipment	September 30, 2023	December 31, 2022 September 30, 2022
	$ 19,374,635	$ 27,044,460 $ 28,001,838

B. Outstanding letters of credit

The outstanding letters of credit for the purchase of property, plant and equipment are as follows:

September 30, September 30, December 31, 2022 2023 2022 Outstanding letters of credit $ 33,109 $ 349,512 $ 214,580

C. On August 3, 2021, the Board of Directors of the Company resolved to enter into a long-term strategic partnership supply contract with SDP Global (China) Co., LTD. The total price of the contract amounted to RMB 4 billion and will be prepaid based on agreed payment terms. As of September 30, 2023, the remaining amount the Group hasn't paid was RMB 1.1 billion. SDP Global (China) Co., LTD. committed to supply certain products in specified quantities each year from January 1, 2022 to December 31, 2033 to the Company and its subsidiary, Foshan Innolux Optoelectronics Ltd. The abovementioned prepayments to suppliers of the Group are shown as ‘prepayments’ and ‘other non-current assets’ based on liquidity amounting to $0 and $12,355,762 respectively, as of September 30, 2023 and $0 and $12,798,704, respectively, as of September 30, 2022.
D. Based on the consideration of long-term business development in India and emerging markets, in the first quarter of 2023, the Company assisted Vedanta Group and its subsidiary, Vedanta Displays Limited, to establish a front-end production base for TFT-LCD display panels in India.The Company will provide relevant assistance in accordance with the contract.

10. SIGNIFICANT DISASTER LOSS

None.

SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

None.

~37~

12. OTHERS

(1) Capital management

No significant changes during the period. Please refer to Note 12 in the consolidated financial statements for the year ended December 31, 2022.

(2) Financial instruments

A. Financial instruments by category
For information of the Group’s financial assets (financial assets at fair value through profit or loss, financial assets at fair value through other comprehensive income, financial assets at amortized cost, cash and cash equivalents, accounts receivable (including related parties), other receivables and partial other assets-others (including current and non-current portion)) and financial liabilities (short-term borrowings, financial liabilities at fair value through profit or loss, accounts payable (including related parties), other payables, lease liability and long-term borrowings (including current portion)), please refer to Note 6 and consolidated balance sheets.
B. Financial risk management policies
No significant changes during the period. Please refer to Note 12 in the consolidated financial statements for the year ended December 31, 2022.

C. Significant financial risks and degrees of financial risks

Except for the following, there was no significant change in the period. Please refer to Note 12 in the consolidated financial statements for the year ended December 31, 2022.

(a) Market risk

Foreign exchange risk

i.The Group operates internationally and is exposed to foreign exchange risk arising from the transactions of the Group used in various functional currency, primarily with respect to the USD, JPY and RMB. Foreign exchange risk arises from future commercial transactions, recognized assets and liabilities and net investments in foreign operations.
ii.The Group’s businesses involve some non-functional currency operations (the Company’s and certain subsidiaries’ functional currency: NTD; other certain subsidiaries’ functional currency: RMB and USD). Based on the simulations performed, the impact on pre-tax profit of a 1% exchange rate fluctuation would be an increase of $230,842 and $608,380 for the nine-month periods ended September 30, 2023 and 2022, respectively. The information on assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations is as follows:

~38~

	September 30,2023	September 30,2023	September 30,2023		December31,2022	December31,2022
	Foreign Currency Amount (In Thousands)	Exchange Rate (Note)	Book Value (NTD)	Foreign Currency Amount (In Thousands)	Exchange Rate (Note)	Book Value (NTD)
Financial assets
Monetary items
USD	$ 3,650,933	32.27	$ 117,815,608	$ 3,883,581	30.71	$ 119,264,773
JPY	7,980,371	0.22	1,755,682	1,447,149	0.23	332,844
RMB EUR HKD	348,912 20,715 76,045	4.49	1,566,615	571,131	4.41	2,518,688
		33.91 4.12	702,446 313,305	17,966 53,706	32.72 3.94	587,848 211,602
Non-monetary items
USD JPY RMB	$ 2,907,534	32.27	$ 93,826,122	$ 2,886,671	30.71 0.23 4.41	$ 88,649,666
	10,187,825 258,768	0.22 4.49	2,241,322 1,161,868	9,051,976 252,911		2,081,954 1,115,338
Financial liabilities Monetary items
USD	$ 2,824,042	32.27	$ 91,131,835	$ 2,107,450	30.71 0.23 32.72	$ 64,719,790
JPY EUR	33,026,974 16,224 5,163	0.22 33.91 23.53	7,265,934 550,156 121,485	25,853,886 11,449 3,370		5,946,394 374,611 77,106
SGD					22.88

Financial assets Monetary items USD RMB JPY EUR HKD Non-monetary items USD JPY RMB Financial liabilities Monetary items USD JPY EUR	September 30,2022 Foreign Currency Amount (In Thousands) Exchange Rate (Note) Book Value (NTD) $ 4,315,878 31.75 $ 137,029,127 571,131 4.47 2,552,956 3,686,276 0.22 810,981 15,258 31.26 476,965 29,262 4.04 118,218 $ 2,830,064 31.75 $ 89,854,532 7,960,298 0.22 1,751,266 242,145 4.47 1,082,388 $ 2,338,640 31.75 $ 74,251,820 25,657,613 0.22 5,644,675 8,119 31.26 253,800	September 30,2022 Foreign Currency Amount (In Thousands) Exchange Rate (Note) Book Value (NTD) $ 4,315,878 31.75 $ 137,029,127 571,131 4.47 2,552,956 3,686,276 0.22 810,981 15,258 31.26 476,965 29,262 4.04 118,218 $ 2,830,064 31.75 $ 89,854,532 7,960,298 0.22 1,751,266 242,145 4.47 1,082,388 $ 2,338,640 31.75 $ 74,251,820 25,657,613 0.22 5,644,675 8,119 31.26 253,800	September 30,2022 Foreign Currency Amount (In Thousands) Exchange Rate (Note) Book Value (NTD) $ 4,315,878 31.75 $ 137,029,127 571,131 4.47 2,552,956 3,686,276 0.22 810,981 15,258 31.26 476,965 29,262 4.04 118,218 $ 2,830,064 31.75 $ 89,854,532 7,960,298 0.22 1,751,266 242,145 4.47 1,082,388 $ 2,338,640 31.75 $ 74,251,820 25,657,613 0.22 5,644,675 8,119 31.26 253,800
		Exchange Rate (Note)	Book Value (NTD)
		31.75 $ 137,029,127 4.47 2,552,956 0.22 810,981 31.26 476,965 4.04 118,218 31.75 $ 89,854,532 0.22 1,751,266 4.47 1,082,388 31.75 $ 74,251,820 0.22 5,644,675 31.26 253,800

Note: Exchange rate represents the amount of NT dollars for which one foreign currency could be exchanged.

iii. Total exchange gain, including realized and unrealized arising from significant foreign exchange variation on the monetary items held by the Group for the three-month and nine-month periods ended September 30, 2023 and 2022 amounted to $701,398, $3,587,183, $2,043,747 and $7,674,014, respectively.

Price risk

i. The Group is exposed to equity securities price risk because of investments held by the Group and classified on the consolidated balance sheet as financial assets at fair value through profit or loss and financial assets at fair value through other comprehensive

~39~

income. To manage its price risk arising from investments in equity securities, the Group diversifies its portfolio. Diversification of the portfolio is done by the Group in respect of the targets and stages.

ii. The Group’s investments in equity securities comprise domestic listed and unlisted stocks, beneficiary certificates and financial products. 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 20% with all other variables held constant, pre-tax profit for the nine-month periods ended September 30, 2023 and 2022 would have increased/decreased by $2,429,589 and $3,727,261, respectively; other comprehensive gains and losses would have increased/decreased by $1,073,533 and $1,061,549, respectively.

Cash flow and fair value interest rate risk

i. The Group’s main interest rate risk arises from long-term borrowings with variable rates, which expose the Group to cash flow interest rate risk. During the nine-month periods ended September 30, 2023 and 2022, the Group’s borrowings at variable rate were denominated in the NTD and RMB.
ii. If the borrowing interest rate had increased/decreased by 0.25% with all other variables held constant, pre-tax profit for the nine-month periods ended September 30, 2023 and 2022 would have decreased/increased by $131,038 and $75,078, respectively. The main factor is that changes in interest expense result from floating-rate borrowings.
(b) Credit risk
i. Credit risk refers to the risk of financial loss to the Group arising from default by the clients or counterparties of financial instruments on the contract obligations. The main factor is that counterparties could not repay in full the accounts receivable based on the agreed terms, and the contract cash flows. As at September 30, 2023, December 31, 2022 and September 30, 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 amortized cost and accounts receivable held by the Group was its carrying amount.
ii. According to the Group’s credit policy, each local entity in the Group is responsible for managing and analysing the credit risk for each of their new clients before standard payment and delivery terms and conditions are offered. Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings in accordance with limits set by the managements. The utilization of credit limits is regularly monitored.
iii.The Group 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 are past due over 30 days based on the terms, there has been a significant increase in credit risk on that instrument since initial recognition.

~40~

iv. The Group adopts the assumption under IFRS 9, the default occurs when the contract payments are past due over 90 days.
v. The Group classifies customer’s accounts receivable in accordance with credit rating of customer, credit risk on trade and customer types. The Group applies the simplified approach using provision matrix to estimate expected credit loss.
vi. 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 reorganization due to their financial difficulties;
(ii) Default or delinquency in interest or principal repayments;
(iii) Adverse changes in national or regional economic conditions that are expected to cause a default.
vii. The Group uses the forecastability to adjust historical and timely information to assess the default possibility of accounts receivable.
According to abovementioned consideration and information, the Group does not expect any significant default possibility of accounts receivable.
viii. Movements in relation to the Group applying the simplified approach to provide loss allowance for accounts receivable are as follows:

allowance for accounts receivable are as follows:
At January 1 Effect on exchange rate changes At September 30 At January 1 Provision for impairment At September 30	2023
	Accounts receivable
	$ 279,260 846
	$ 280,106

	2022
	Accounts receivable
	$ 262,610 1
	$ 262,611

ix. The Group’s financial assets at amortized cost have low credit risk, and the Group did not recognize significant loss allowance in accordance with 12 months expected credit losses.

(c) Liquidity risk

The information below analyses the Group’s non-derivative financial liabilities and netsettled 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. The amounts disclosed in the table are the contractual undiscounted cash flows.

~41~

Non-derivative financial liabilities:

September 30,2023	Less than 1year	Between 1 and 3years	Between 3 and 5years	Over 5years Total
Lease liability (Note) Long-term borrowings (including current portion) December 31,2022	$ 679,392 38,200,496 Less than 1year	$ 1,000,878 30,553,769 Between 1 and 3years	$ 916,287 75,992 Between 3 and 5years	$ 1,510,877 $ 4,107,434 1,056,824 69,887,081 Over 5years Total
Lease liability (Note) Long-term borrowings (including current portion) September 30,2022	$ 736,175 8,786,111	$ 1,216,128 26,612,500	$ 1,022,382 259,722	$ 1,947,699 $ 4,922,384 — 35,658,333
	Less than 1year	Between 1 and 3years	Between 3 and 5years	Over 5years Total
Lease liability (Note) Long-term borrowings (including current portion)	$ 726,515 8,783,333	$ 1,247,062 30,927,778	$ 1,033,339 330,556	$ 2,072,699 $ 5,079,615 — 40,041,667

Note: The Company applied a 1-year grace period for land rental payment starting from September 2020. The payment is repayable in 36 equal monthly installments for 3 years.

Except for the above, the non-derivative and derivative financial liabilities of the Group are all due within one year.

(3) Fair value information

A. The different levels that the inputs to valuation techniques are used to measure fair value of financial and non-financial instruments have been defined as follows:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. A market is regarded as active where a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. The fair value of the Group’s investment in listed stocks and beneficiary certificates 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 Group’s investment in derivative instruments and financial products is included in Level 2.
Level 3: Unobservable inputs for the asset or liability. The fair value of the Group’s investment in equity investment without active market and bonds payable is included in Level 3.
B. Fair value information of investment property at cost is provided in Note 6(10).
C. Financial instruments not measured at fair value
Except for those listed in the table below, the carrying amounts of cash and cash equivalents, accounts receivable (including related parties), other receivables, financial assets at amortized cost, partial other assets-others (including current and non-current portion), accounts payable

~42~

(including related parties), other payables, lease liability, short-term borrowings and long-term borrowings (including current portion) are approximate to their fair values.

		September 30,2023	September 30,2023
			Fair value
	Book value	Level 1	Level 2 Level 3
Financial assets: Corporate bonds	$ 1,214,954	$ —	$ 1,195,955 $ —
		December	31,2022
			Fair value
	Book value	Level 1	Level 2 Level 3
Financial assets: Corporate bonds	$ 6,073,581	$ —	$ 5,943,761 $ —
		September 30,2022
			Fair value
	Book value	Level 1	Level 2 Level 3
Financial assets: Corporate bonds	$ 6,568,499	$ —	$ 6,391,507 $ —

D. The related information of financial and non-financial instruments measured at fair value by level on the basis of the nature, characteristics and risks of the assets and liabilities is as follows:

(a) The related information of natures of the assets and liabilities is as follows:

September 30,2023	Level 1	Level 2	Level 3 Total
Assets Recurring fair value measurements Financial assets at fair value through profit or loss Equity securities Forward foreign exchange contracts Convertible bonds Beneficiary certificates Financial instruments Financial assets at fair value through other comprehensive income Equity securities Liabilities Recurring fair value measurements Financial liabilities at fair value through profit or loss Forward foreign exchange contracts Foreign exchange swap contracts	$ 3,473,874 — — 7,249,056 — 5,149,695	$ — 10,451 — — 170,864 —	$ 1,254,149 $ 4,728,023 — 10,451 203,842 203,842 — 7,249,056 — 170,864 217,969 5,367,664
	$ 15,872,625	$ 181,315	$ 1,675,960 $ 17,729,900
	$ — —	$ 279,542 120,147	$ — $ 279,542 — 120,147
	$ —	$ 399,689	$ — $ 399,689

~43~

December 31,2022	Level 1	Level 2	Level 3 Total
Assets Recurring fair value measurements Financial assets at fair value through profit or loss Equity securities Forward foreign exchange contracts Convertible bonds Foreign exchange swap contracts Financial instruments Financial assets at fair value through other comprehensive income Equity securities Liabilities Recurring fair value measurements Financial liabilities at fair value through profit or loss Forward foreign exchange contracts Foreign exchange swap contracts September 30,2022	$ 3,261,581 — — — — 5,309,890	$ — 342,475 — 43,028 114,782 —	$ 1,271,077 $ 4,532,658 — 342,475 193,988 193,988 — 43,028 — 114,782 21,116 5,331,006
	$ 8,571,471	$ 500,285	$ 1,486,181 $ 10,557,937
	$ — —	$ 289,691 39,490	$ — $ 289,691 — 39,490
	$ —	$ 329,181	$ — $ 329,181
	Level 1	Level 2	Level 3 Total
Assets Recurring fair value measurements Financial assets at fair value through profit or loss Equity securities Forward foreign exchange contracts Convertible bonds Beneficiary certificates Financial instruments Financial assets at fair value through other comprehensive income Equity securities Liabilities Recurring fair value measurements Financial liabilities at fair value through profit or loss Forward foreign exchange contracts Foreign exchange swap contracts	$ 3,287,998 — — 13,947,456 — 5,274,277	$ — 56,998 — — 98,958 —	$ 1,301,894 $ 4,589,892 — 56,998 190,424 190,424 — 13,947,456 — 98,958 33,470 5,307,747
	$ 22,509,731	$ 155,956	$ 1,525,788 $ 24,191,475
	$ — —	$ 1,090,005 1,068,166	$ — $ 1,090,005 — 1,068,166
	$ —	$ 2,158,171	$ — $ 2,158,171

~44~

(b) The methods and assumptions the Group used to measure fair value are as follows:
- i.The instruments the Group used market quoted prices as their fair values (that is, Level 1) are listed below by characteristics:
  - Listed shares Emerging stocks Corporate bond Last transaction Weighted average
  - Closing price
  - Market quoted price price quoted price
- ii. Except for financial instruments with active markets, the fair value of other financial instruments is measured by using valuation techniques or by reference to counterparty quotes. The fair value of financial instruments measured by using valuation techniques can be referred to current fair value of instruments with similar terms and characteristics in substance, discounted cash flow method or other valuation methods, including calculated by applying model using market information available at the consolidated balance sheet date.
- iii. When assessing non-standard and low-complexity financial instruments, for example, foreign exchange swap contracts and financial products, the Group adopts valuation technique that is widely used by market participants. The inputs used in the valuation method to measure these financial instruments are normally observable in the market.
- iv. The valuation of derivative financial instruments is based on valuation model widely accepted by market participants, such as present value techniques and option pricing models. Forward foreign exchange contracts and foreign exchange swap contracts are usually valued based on the current forward exchange rate. Convertible bonds derivative instruments are measured by using appropriate option pricing models (binary tree model or Black-Scholes model for convertible bond pricing).
- v. The output of valuation model is an estimated value and the valuation technique may not be able to capture all relevant factors of the Group’s financial and non-financial instruments. Therefore, the estimated value derived using valuation model is adjusted accordingly with additional inputs, for example, model risk or liquidity risk and etc. In accordance with the Group’s management policies and relevant control procedures relating to the valuation models used for fair value measurement, management believes adjustment to valuation is necessary in order to reasonably represent the fair value of financial and non-financial instruments at the consolidated balance sheet. The inputs and pricing information used during valuation are carefully assessed and adjusted based on current market conditions.
- vi. The Group takes into account adjustments for credit risks to measure the fair value of financial and non-financial instruments to reflect credit risk of the counterparty and the Group’s credit quality.
E. For the nine-month periods ended September 30, 2023 and 2022, there was no transfer between Level 1 and Level 2.
F. The following table presents the changes in Level 3 instruments for the nine-month periods ended September 30, 2023 and 2022:

~45~

2023

		2023
Financial assets at fair value through profit or loss / Financial assets at fair value through other comprehensive income At January 1 Gains and losses recognized in profit or loss Gains and losses recognized in other comprehensive income Acquired in the period	Equitysecurities	Hybrid instrument Total
	$ 1,292,193 (19,859) (8,073) 197,404 (2,348) 12,801	$ 193,988 $ 1,486,181 — (19,859) — (8,073) — 197,404 — (2,348) 9,854 22,655
Proceeds from capital reduction
Effect on exchange rate changes At September 30 Financial assets at fair value through profit or loss / Financial assets at fair value through other comprehensive income At January 1 Gains and losses recognized in profit or loss Gains and losses recognized in other comprehensive income Acquired in the period
	$ 1,472,118	$ 203,842 $ 1,675,960
		2022 Hybrid instrument Total $ —$ 3,093,322 (70) (1,489,551) — (20,063) 178,320 207,846 — (125,260) — (231,827) 12,174 91,321 $ 190,424 $ 1,525,788
	Equitysecurities
	$ 3,093,322 (1,489,481) (20,063) 29,526 (125,260) (231,827) 79,147
Investment cost return
Transfers to Level 1
Effect on exchange rate changes At September 30
	$ 1,335,364

G. Investment management 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 fair value. Convertible bonds derivative instruments are evaluated through outsourced appraisal performed by the external valuer.

~46~

Investment management segment set up valuation policies, valuation processes, and rules for measuring fair value of financial instruments and ensure compliance with the related requirements in IFRS.

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:

Fair value at September 30,2023	Valuation technique	Significant unobservable input	Range (weighted average) Relationship of inputs to fair value	Range (weighted average) Relationship of inputs to fair value
$ 1,374,265 16,190 45,649 36,000 14 203,842
	Market comparable companies	Price to sales ratio multiple, price to book ratio multiple	0.86~5.69 (1.16) The higher the multiple, the higher the fair value
	Using the last transaction price in an inactive market Net asset value	Discount for lack of marketability Discount for lack of marketability Discount for lack of marketability	30%~80% (28%) The higher the discount for lack of marketability, the lower the fair value 30% (30%) The higher the discount for lack of marketability, the lower the fair value 27% (27%) The higher the discount for lack of marketability, the lower the fair value
	Discounted Cash Flow	Discount rate	15.87%	The higher the discount rate, the lower the fair value
	Net asset value	Not applicable	Not applicable Not applicable

	Discounted cash flow method and Option pricing model	Discount and Volatility rate	4.39%~27.17% (15.78%)	The higher the volatility, the higher the fair value; the higher the discount rate, the lower the fair value

~47~

	Fair value at December 31,2022	Valuation technique	Significant unobservable input	Range (weighted average) Relationship of inputs to fair value	Range (weighted average) Relationship of inputs to fair value
Non-derivative equity instrument:
Unlisted shares	$ 1,209,140	Market comparable companies	Price to sales ratio multiple, price to book ratio multiple	0.86~5.69 (1.30) The higher the multiple, the higher the fair value
Venture capital shares Private equity fund investment	15,407 45,649 21,997	Using the last transaction price in an inactive market Net asset value Net asset value	Discount for lack of marketability Discount for lack of marketability Discount for lack of marketability Not applicable	30%~80% (32%) The higher the discount for lack of marketability, the lower the fair value 30% (30%) The higher the discount for lack of marketability, the lower the fair value 27% (27%) The higher the discount for lack of marketability, the lower the fair value Not applicable Not applicable
Hybrid instrument:
Convertible bond	193,988	Discounted cash flow method and Option pricing model	Discount and Volatility rate	4.39%~28.48% (15.78%)	The higher the volatility, the higher the fair value; the higher the discount rate, the lower the fair value

~48~

Fair value at September 30,2022	Valuation technique	Significant unobservable input	Range (weighted average) Relationship of inputs to fair value	Range (weighted average) Relationship of inputs to fair value

$ 1,267,907	Market comparable companies	Price to sales ratio multiple, price to book ratio multiple	1.25~5.19 (1.46) The higher the multiple, the higher the fair value
15,928 27,726 23,803	Using the last transaction price in an inactive market Net asset value Net asset value	Discount for lack of marketability Discount for lack of marketability Discount for lack of marketability Not applicable	30%~80% (32%) The higher the discount for lack of marketability, the lower the fair value 30% (30%) The higher the discount for lack of marketability, the lower the fair value 12% (12%) The higher the discount for lack of marketability, the lower the fair value Not applicable Not applicable
190,424	Discounted cash flow method and Option pricing model	Discount and Volatility rate	3.14%~38.98% (18.94%)	The higher the volatility, the higher the fair value; the higher the discount rate, the lower the fair value

I. The Group has carefully assessed the valuation models and assumptions used to measure fair value. However, use of different valuation models or assumptions may result in different measurement. The following is the effect on profit or loss or on other comprehensive income from financial assets and liabilities categorized within Level 3 if the inputs used to valuation models have changed:

Financial assets	Input	Change	September 30,2023	September 30,2023	September 30,2023	September 30,2023
			Recognized inprofit or loss		Recognized in other comprehensive income
			Favourable change	Unfavourable change	Favourable change Unfavourable change
Equity instrument	Liquidity discount	± 1%	$ 19,390	$ (19,390)	$ 316 $ (316)
Equity instrument	Discount rate	± 1%	—	—	3,808	(3,291)
Hybrid instrument	Discount and Volatility rate	± 1%	4,895	(4,735)	—	—

~49~

December 31, 2022

Financial assets	Input	Change	Recognized inprofit or loss	Recognized inprofit or loss	Recognized in other comprehensive income
			Favourable change	Unfavourable change	Favourable change Unfavourable change
Equity instrument Hybrid instrument	Liquidity discount Discount and Volatility rate	± 1% ± 1%	$ 19,245 4,658	$ (19,245) (4,506)	$ 302 $ (302) — —

Financial assets	Input	Change		September 30,2022
			Recognized inprofit or loss		Recognized in other comprehensive income
			Favourable change	Unfavourable change	Favourable change Unfavourable change
Equity instrument Hybrid instrument	Liquidity discount Discount and Volatility rate	± 1% ± 1%	$ 27,994 5,583	$ (27,994) (5,372)	$ 478 $ (478) — —

13. SUPPLEMENTARY DISCLOSURES

(1) Significant transactions information

A. Loans to others: Please 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): Please refer to Table 2.
D. Acquisition or sale of the same security with the accumulated cost exceeding $300 million or 20% of the Company’s paid-in capital: Please refer to Table 3.
E. Acquisition of real estate reaching $300 million or 20% of paid-in capital or more: None.
F. Disposal of real estate reaching $300 million or 20% of paid-in capital or more: None.
G. Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more: Please refer to Table 4.
H. Receivables from related parties reaching $100 million or 20% of paid-in capital or more: Please refer to Table 5.
I. Trading in derivative instruments undertaken during the reporting periods: Please refer to Note 6(2).
J. Significant inter-company transactions during the reporting period: Please refer to Table 6.
(2) Information on investees

Names, locations and other information of investee companies (not including investees in Mainland China): Please refer to Table 7.

(3) Information on investments in Mainland China

A. Basic information: Please refer to Table 8.
B. Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland Area: Please refer to Table 1, 4, 5 and 6.

~50~

(4) Major shareholders information

Names, number of shares and ownership of shareholders whose equity interest is greater than 5%: None.

14. SEGMENT INFORMATION

(1) General information

The Group is primarily engaged in the research, development, design, manufacture and sales of TFT-LCD panels, modules and monitors of LCD, color filter, and low temperature poly-silicon TFT-LCD. The Group operates TFT-LCD business only in a single industry. The chief operating decision-maker who allocates resources and assesses performance of the Group as a whole, has identified that the Group has only one reportable operating segment.

The Group’s operating segment information was prepared in accordance with the Group’s accounting policies. The chief operating decision-maker allocated resources and assesses performance of the operating segments primarily based on the operating revenue and profit (loss) before tax and continued operations of individual operating segment.

(2) Segment information

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

segments is as follows:
	For the three-month periods ended September 30,		For the nine-month periods ended September 30, 2023 2022 TFT LCD TFT LCD $ 158,336,334 $ 175,802,862 $ (13,419,226) $ (14,272,539) $ 23,079,924 $ 24,745,249 $ 16,671,239 $ 15,751,401 $ 395,944,948 $ 422,322,490
	2023	2022
	TFT LCD	TFT LCD	TFT LCD	TFT LCD
Segment revenue Segment loss Depreciation and amortization Capital expenditure- property, plant and equipment	$ 57,653,668	$ 48,015,256	$ 158,336,334 $ 175,802,862
	$ (1,346,960)	$ (12,220,733)	$ (13,419,226) $ (14,272,539)
	$ 7,648,584	$ 7,915,262	$ 23,079,924 $ 24,745,249
	$ 5,330,351	$ 4,599,987	$ 16,671,239 $ 15,751,401
Segment assets			$ 395,944,948 $ 422,322,490

(3) Reconciliation for segment income

In current period, the revenue and income or loss before tax of reportable operating segment are consistent with those of continuing operations.

~51~

Table 1

Innolux Corporation and Subsidiaries Loans to others

For the nine-month period ended September 30, 2023

Expressed in thousands of NTD (Except as otherwise indicated)

No.	Creditor	Borrower	General ledger account	Is a related party	Maximum outstanding balance during the nine-month period ended September 30, 2023	Balance as at September 30, 2023	Actual amount drawn down	Interest rate	Nature of loan	Amount of transactions with the borrower	Reason for short-term financing	Allowance for doubtful accounts	Coll	ateral	Limit on loans granted to a singleparty	Ceiling on total loansgranted	Footnote
													Item	Value
1 1 1 1 1 1 2 3 4 5 6	Innocom Technology (Shenzhen) Co., Ltd. Innocom Technology (Shenzhen) Co., Ltd. Innocom Technology (Shenzhen) Co., Ltd. Innocom Technology (Shenzhen) Co., Ltd. Innocom Technology (Shenzhen) Co., Ltd. Innocom Technology (Shenzhen) Co., Ltd. Innolux Japan Co., Ltd. Innolux Holding Limited Warriors Technology Investments Ltd Innolux Hong Kong Limited Innolux Hong Kong Holding Limited	Foshan Innolux Optoelectronics Ltd. Ningbo Innolux Optoelectronics Ltd. Ningbo Innolux Display Ltd. CarUX Technology (Shanghai) Ltd. Nanjing Innolux Optoelectronics Ltd. Ningbo CarUX Technology Ltd. Innolux Corporation Innolux Corporation Innolux Corporation Innolux Hong Kong Holding Limited CARUX TECHNOLOGY PTE. LTD.	Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables	Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes	$ 6,742,817 2,247,606 3,146,648 1,348,563 3,146,648 2,517,318 2,213,330 1,698,085 3,807,860 1,799,101 1,784,531	$ 6,742,817 2,247,606 3,146,648 1,348,563 3,146,648 2,517,318 2,213,330 1,698,085 3,807,860 1,799,101 1,784,531	$ 6,742,817 1,186,736 2,562,271 1,168,755 — 539,426 2,213,330 1,698,085 3,807,860 1,799,101 1,784,531	2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 1.00% 0.00% 0.00% 0.00% 3.82%~ 5.31%	Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing Long-term and short- term financing Long-term and short- term financing Long-term and short- term financing Long-term and short- term financing Long-term and short- term financing	$ — — — — — — — — — — —	Operating support Operating support Operating support Operating support Operating support Operating support Operating support Operating support Operating support Operating support Operating support	$ — — — — — — — — — — —	— — — — — — — — — — —	$ — — — — — — — — — — —	25,195,490 25,195,490 25,195,490 25,195,490 25,195,490 25,195,490 8,091,874 40,095,478 11,494,000 3,599,164 12,713,678	25,195,490 A 25,195,490 A 25,195,490 A 25,195,490 A 25,195,490 A 25,195,490 A 8,091,874 A 40,095,478 A 11,494,000 A 3,599,164 A 12,713,678 A

Note A:

1.For loans obtained for short-term financing, financial limit on loans granted to a single party shall not exceed 10% of the Group’s net equity, based on the most recent audited or reviewed financial statements of the creditor.
2.The financial limit on loans granted shall not exceed 40% of the creditor’s net equity. If it is for short-term capital needs, the limit shall not exceed 30% of the creditor’s net equity, based on the most recent audited or reviewed financial statements of the creditor.
3.The policy for loans granted to direct or indirect wholly-owned ultimate parent company or overseas subsidiaries is as follows: for short-term capital needs, financial limit is not restricted to the abovementioned two rules, however, financial limit on total loans granted and limit on loans granted to a single party for the overseas subsidiaries should not exceed 200% of the creditor’s net equity.

Table�1�,�Page�1

Table 2

Innolux Corporation and Subsidiaries

Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures) September 30, 2023

Expressed in thousands of NTD (Except as otherwise indicated)

		Relationship with the securities issuer			As of September 30, 2023	As of September 30, 2023
Securities held by	Marketable securities		General ledger account	Shares/Units	Book value	Ownership (%)	Fair value Footnote
	Common stock
Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation InnoCare Optoelectronics Corporation Yuan Chi Investment Co., Ltd.	AvanStrate Inc. TPV Technology Limited Chi Lin Optoelectronics Co., Ltd. Cheng Mei Materials Technology Corporation General Interface Solution (GIS) Holding Limited Obsidian Sensors, Inc. VIZIO Holding Corp. Cathay Financial Holding Co., Ltd. Preferred Stock A TAISHIN FINANCIAL HOLDING CO., LTD. Preferred Stock E Chailease Holding Company Limited Class A Preferred Shares Fubon Financial Holding Co., Ltd. Preferred Shares B ENNOSTAR Inc. Cathay Financial Holding Co., Ltd. Preferred Stock B CTBC Financial Holding Co., Ltd. Preferred Shares B CTBC Financial Holding Co., Ltd. Preferred Shares C Fubon Financial Holding Co., Ltd. Preferred Shares C DEEP01 LIMITED Trillion Science, Inc.	None None Other related party None None None None None None None None None None None None None None None	Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income Financial assets at fair value through profit or loss Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income Financial assets at fair value through profit or loss	900,000 60,200,000 4,270,212 48,617,638 1,669,000 596,428 8,347,068 1,872,000 263,000 915,000 2,247,000 2,750,000 1,006,000 414,000 417,000 2,000 200,323 1,439,180	$ 10,789 1,115,187 45,649 593,135 98,471 7,698 1,457,237 112,320 13,387 88,663 134,371 120,725 60,360 25,006 24,978 112 36,000 —	1 3 19 8 — 15 4 — — 1 — — — — — — 6 3	$ 10,789 1,115,187 45,649 593,135 98,471 7,698 1,457,237 112,320 13,387 88,663 134,371 120,725 60,360 25,006 24,978 112 36,000 —

Table�2�,�Page�1

		Relationship with the securities issuer			As of September 30, 2023	As of September 30, 2023
Securities held by	Marketable securities		General ledger account	Shares/Units	Book value	Ownership (%)	Fair value Footnote
Yuan Chi Investment Co., Ltd. Yuan Chi Investment Co., Ltd. Yuan Chi Investment Co., Ltd. Yuan Chi Investment Co., Ltd. Yuan Chi Investment Co., Ltd. Yuan Chi Investment Co., Ltd. Yuan Chi Investment Co., Ltd. Yuan Chi Investment Co., Ltd. InnoJoy Investment Corporation InnoJoy Investment Corporation InnoJoy Investment Corporation InnoJoy Investment Corporation InnoJoy Investment Corporation Ningbo Innolux Optoelectronics Ltd. Warriors Technology Investments Ltd Warriors Technology Investments Ltd Warriors Technology Investments Ltd Warriors Technology Investments Ltd Warriors Technology Investments Ltd Warriors Technology Investments Ltd Warriors Technology Investments Ltd Warriors Technology Investments Ltd	Common stock Cheng Mei Materials Technology Corporation WPG Holdings Limited Preferred Share A WT MICROELECTRONICS CO., LTD. Preferred Shares A VISIONATICS INC. Clarix Imaging Corporation Taiwan Cement Corp. 2nd Preferred Shares BANK OF KAOHSIUNG CO., LTD. Preferred Shares A TAISHIN FINANCIAL HOLDING CO., LTD. Class E Preferred SharesⅡ Advanced Optoelectronic Technology, Inc. ENNOSTAR Inc. EPILEDS Co., Ltd. Fitipower Integrated Technology Inc. BE Epitaxy Semiconductor Technology Co., Ltd. Shenzhen Tiandeyu Electronics Co., Ltd. OED Holding Ltd. Obsidian Sensors, Inc. Reco Technology Holding Limited Kymeta Corporation General Interface Solution (GIS) Holding Limited CJK Associates Co., Ltd. Perinnova Limited KA Imaging Inc.	None None None Other related party None None None None None None Other related party None None None None None None None None None Other related party Other related party	Financial assets at fair value through profit or loss Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income Financial assets at fair value through profit or loss Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income	267,684 2,035,000 176,000 300,000 113,033 1,177,000 100,000 400,000 6,964,222 954,000 7,347,144 5,850,000 10,150,147 30,599,775 16,000,000 414,136 2,016,000 1,027,371 22,525,000 4,000 1,900 1,819,240	$ 3,266 93,406 7,762 1,674 2,105 55,554 2,100 18,480 122,570 41,881 106,534 1,620,450 159,865 2,493,826 42,076 5,617 25,014 16,190 1,328,975 728 — 3,512	— 1 — 10 1 1 — — 5 — 7 5 15 7 6 10 2 — 7 14 19 12	$ 3,266 93,406 7,762 1,674 2,105 55,554 2,100 18,480 122,570 41,881 106,534 1,620,450 159,865 2,493,826 42,076 5,617 25,014 16,190 1,328,975 728 — 3,512

Table�2�,�Page�2

		Relationship with the securities issuer			As of September 30, 2023	As of September 30, 2023
Securities held by	Marketable securities		General ledger account	Shares/Units	Book value	Ownership (%)	Fair value Footnote
Nets Trading Ltd. Warriors Technology Investments Ltd Warriors Technology Investments Ltd Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Ningbo Innolux Display Ltd. Foshan Innolux Optoelectronics Ltd. Ningbo Innolux Electronics Ltd. Ningbo Innolux Optoelectronics Ltd. Ningbo CarUX Technology Ltd. Nanjing Innolux Optoelectronics Ltd. Innocom Technology (Shenzhen) Co., Ltd. CarUX Technology (Shanghai) Ltd.	Common stock PilotTech Global Fund Convertible bonds KA Imaging Inc. Obsidian Sensors, Inc. Beneficiarycertificates Taishin Ta-Chong Money Market Fund Taishin 1699 Money Market Fund CTBC Hwa-win Money Market Fund Fubon Chi-Hsiang Money Market Fund Jih Sun Money Market Fund Capital Money Market Fund UPAMC James Bond Money Market Fund Hua Nan Phoenix Money Market Fund Financialproducts Chang Jiang Sheng Shih Ru Yi Serials A congregate group pension plan Chang Jiang Sheng Shih Ru Yi Serials A congregate group pension plan Chang Jiang Sheng Shih Ru Yi Serials A congregate group pension plan Chang Jiang Sheng Shih Ru Yi Serials A congregate group pension plan Chang Jiang Sheng Shih Ru Yi Serials A congregate group pension plan Chang Jiang Sheng Shih Ru Yi Serials A congregate group pension plan Chang Jiang Sheng Shih Ru Yi Serials A congregate group pension plan Chang Jiang Sheng Shih Ru Yi Serials A congregate group pension plan	None Other related party None None None None None None None None None None None None None None None None None	Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss	90 — — 13,836,522 145,031,058 44,615,371 31,345,997 99,282,299 91,304,931 29,432,541 30,187,221 — — — — — — — —	$ 14 103,827 100,015 201,503 2,015,497 503,217 503,197 1,509,657 1,509,617 503,111 503,257 12,374 48,958 440 61,524 2,417 26,469 10,017 8,665	— Not applicable Not applicable — — — — — — — — Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable	$ 14 103,827 100,015 201,503 2,015,497 503,217 503,197 1,509,657 1,509,617 503,111 503,257 12,374 48,958 440 61,524 2,417 26,469 10,017 8,665

Table�2�,�Page�3

		Relationship with the securities issuer			As of September 30, 2023	As of September 30, 2023	cl3 $ 302,390 288,603 289,823 315,139 Fair value Footnote
Securities held by	Marketable securities		General ledger account	Shares/Units	Book value	Ownership (%)
Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation	Bonds Agricultural Bank of China (New York Branch) Saudi Electricity Global SUKUK Company 4 Shinhan Bank Sumitomo Mitsui Trust Bank	None None None None	Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost	— — — —	$ 306,757 293,740 291,394 323,063	Not applicable Not applicable Not applicable Not applicable

Table�2�,�Page�4

Innolux Corporation and Subsidiaries

Acquisition or sale of the same security with the accumulated cost exceeding $300 million or 20% of the Company's paid-in capital For the nine-month period ended September 30, 2023

Table 3

==> picture [235 x 41] intentionally omitted <==

Expressed in thousands of NTD (Except as otherwise indicated)

Investor	Marketable securities (Note 1)	General ledger account	Counterparty (Note 2)	Relationship with the investor (Note 2)	Balance as at January1,2023	Balance as at January1,2023	Addition(Note 3)	Addition(Note 3)		Disposal(Note 3)	Disposal(Note 3)		Balance as at September 30,2023
					Shares/Units	Amount	Shares/Units	Amount	Shares/ Units	Selling price	Book value	Gain (loss) on disposal	Shares/Units Amount
Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation	CTBCHwa-win MoneyMarket Fund FubonChi-Hsiang MoneyMarket Fund JihSunMoney MarketFund CapitalMoney MarketFund Taishin1699 MoneyMarketFund UPAMCJamesBond MoneyMarketFund HuaNanPhoenix MoneyMarketFund FixedIncome StructuredLinked Deposit FixedIncome RMB-Structured Deposits InnoluxHolding Limited	Note4 Note4 Note4 Note4 Note4 Note4 Note4 Note5 Note5 Note6	— — — — — — — — — Innolux Holding Limited	— — — — — — — — — Asubsidiary ofthe Company	—$ —44,615,371$500,000 —$ —$ —$ — 44,615,371$503,217 — —31,345,997500,000 — — — — 31,345,997503,197 — —99,282,2991,500,000 — — — — 99,282,2991,509,657 — —91,304,9311,500,000 — — — — 91,304,9311,509,617 — —145,031,0582,000,000 — — — — 145,031,0582,015,497 — —29,432,541500,000 — — — — 29,432,541503,111 — —30,187,221500,000 — — — — 30,187,221503,257 —1,535,500 — — —1,533,2031,594,750 14,203 — — —485,038 — — — 474,463 475,530 2,563 — — 180,568,18518,569,84545,000,0001,426,050 — — — — 225,568,18520,047,739

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

Note�2:�Fill�in�the�columns�the�counterparty�and�relationship�if�securities�are�accounted�for�using�the�equity�method;�otherwise�leave�the�columns�blank.

Note�3:�Aggregate�purchases�and�sales�amounts�should�be�calculated�separately�at�their�market�values�to�verify�whether�they�individually�reach�NT$300�million�or�20%�of�paid-in�capital�or�more.

Note�4:�Code�of�general�ledger�account�is�"financial�assets�at�fair�value�through�profit�or�loss".�Due�to�adoption�of��IFRS,�it�would�be�valued�at�fair�value�rather�than�recognized�disposal�gain�or�loss.�The�carrying�amount�as�at�September�30,�2023� ��included�gains�or�losses�on�valuation.

Note�5:�Code�of�general�ledger�account�is�"financial�assets�at�amortized�cost",�and�its�carrying�amount�includes�the�effect�of�exchange�rate.�The�gain�or�loss�due�to�disposal�is�interest�income.

Note�6:�Code�of�general�ledger�account�is�"Investments�accounted�for�under�the�equity�method".�The�carrying�amount�as�at�September�30,�2023�included�the�realized�gain/loss�on�equity�investment�and�other�related�adjustment.

Table�3�,�Page�1

Table 4

Innolux Corporation and Subsidiaries

Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more For the nine-month period ended September 30, 2023

Expressed in thousands of NTD (Except as otherwise indicated)

				Transaction	Transaction		Differences in transaction terms compared to third party transactions	Differences in transaction terms compared to third party transactions	Notes/accounts receivable(payable)	Notes/accounts receivable(payable)
Purchaser/seller	Counterparty	Relationship with the counterparty	Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable(payable) Footnote
Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation	CARUX TECHNOLOGY PTE. LTD. Innolux USA Inc. HONGFUJIN PRECISION ELECTRONICS (YANTAI) CO., LTD. Foshan Innolux Optoelectronics Ltd. InnoCare Optoelectronics Corporation Honfujin Precision Electronics (Chongqing) Co., Ltd. FIH (Hong Kong) Limited Hon Hai Precision Industry Co., Ltd. InnVasLinx Inc. PanelSemi Corporation	An indirect wholly- owned subsidiary An indirect wholly- owned subsidiary An indirect wholly- owned subsidiary of Hon Hai Precision Industry Co., Ltd. An indirect wholly- owned subsidiary A subsidiary of the Company An indirect wholly- owned subsidiary of Hon Hai Precision Industry Co., Ltd. An indirect wholly- owned subsidiary of Hon Hai Precision Industry Co., Ltd. Other related party Associates Associates	Sales Sales Sales Sales Sales Sales Sales Sales Sales Sales	$ 14,191,698 5,813,782 743,901 662,686 308,564 258,710 199,266 158,396 157,909 119,855	10 4 1 — — — — — — —	60 days 120 days 90 days 60-90 days 90 days 90 days 60 days 90 days 60 days 60 days	Similar with general sales Similar with general sales Similar with general sales Similar with general sales Similar with general sales Similar with general sales Similar with general sales Similar with general sales Similar with general sales Similar with general sales	No material difference No material difference No material difference No material difference No material difference No material difference No material difference No material difference No material difference No material difference	$ 10,321,143 1,484,593 238,729 19,337 94,055 76,962 150,277 308,487 31,651 31,767	27 4 1 — — — — 1 — —

Table�4�,�Page�1

Differences in transaction terms compared to third party

							Differences in transaction terms compared to third party	Differences in transaction terms compared to third party
				Transaction			transactions		Notes/accounts receivable(payable)
Purchaser/seller	Counterparty	Relationship with the counterparty	Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable(payable) Footnote
Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation CarUX Technology (Shanghai) Ltd. CarUX Technology Taiwan Inc. Innolux Japan Co., Ltd. Ningbo Innolux Optoelectronics Ltd. Ningbo Innolux Display Ltd. InnoCare Optoelectronics Corporation	Fortunebay Technology Pte. Ltd. Hon Hai Precision Industry Co., Ltd. Foshan Innolux Optoelectronics Ltd. Ningbo Innolux Display Ltd. Ningbo Innolux Optoelectronics Ltd. Nanjing Innolux Optoelectronics Ltd. Ningbo CarUX Technology Ltd. Innocom Technology (Shenzhen) Co., Ltd. CARUX TECHNOLOGY PTE. LTD. CARUX TECHNOLOGY PTE. LTD. Innolux Corporation Ningbo Innolux Display Ltd. Ningbo Innolux Optoelectronics Ltd. InnoCare Optoelectronics Japan Co., Ltd.	An indirect wholly- owned subsidiary of Hon Hai Precision Industry Co., Ltd. Other related party An indirect wholly- owned subsidiary An indirect wholly- owned subsidiary An indirect wholly- owned subsidiary An indirect wholly- owned subsidiary An indirect wholly- owned subsidiary An indirect wholly- owned subsidiary An indirect wholly- owned subsidiary An indirect wholly- owned subsidiary Ultimate parent company An indirect wholly- owned subsidiary An indirect wholly- owned subsidiary An indirect wholly- owned subsidiary	Purchases Purchases Processing expense Processing expense Processing expense Processing expense Processing expense Processing expense Processing revenue Processing revenue Service revenue Sales Sales Sales	$ 148,883 121,892 16,757,230 15,566,459 10,555,330 4,336,872 1,775,407 252,100 10,469,031 7,713,267 209,761 4,455,553 579,687 505,301	— — 12 11 7 3 1 — 82 100 84 20 2 43	60 days 90 days 60 days 60 days 60 days 60 days 60 days 60 days 60 days 60 days 60 days 60 days 60 days 60 days	Similar with general transactions Similar with general transactions Cost plus Cost plus Cost plus Cost plus Cost plus Cost plus Similar with general transactions Similar with general transactions Similar with general transactions Similar with general transactions Similar with general transactions Similar with general transactions	No material difference No material difference No material difference No material difference No material difference No material difference No material difference No material difference No material difference No material difference No material difference No material difference No material difference No material difference	$ (32,246) (236,901) (5,154,467) (7,991,982) (9,729,022) (2,915,685) (74,904) (691,594) 759,660 2,831,277 55,796 1,171,835 81,941 371,051	— 1 11 17 21 6 — 3 38 95 100 9 1 62

Table�4�,�Page�2

				Transaction	Transaction		Differences in transaction terms compared to third party transactions	Differences in transaction terms compared to third party transactions	Notes/accounts receivable(payable)	Notes/accounts receivable(payable)
Purchaser/seller	Counterparty	Relationship with the counterparty	Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable(payable) Footnote
InnoCare Optoelectronics Corporation Foshan Innolux Optoelectronics Ltd. InnoCare Optoelectronics Japan Co., Ltd. InnoCare Optoelectronics Corporation Ningbo Innolux Display Ltd. Ningbo Innolux Optoelectronics Ltd. Ningbo Innolux Optoelectronics Ltd. CarUX Technology Europe B.V.	InnoCare Optoelectronics USA, INC. Nanjing Innolux Optoelectronics Ltd. InnoCare Optoelectronics Corporation Ningbo Innolux Electronics Ltd. Hon Hai Precision Industry Co., Ltd. Hon Hai Precision Industry Co., Ltd. Fortunebay Technology Pte. Ltd. CARUX TECHNOLOGY PTE. LTD.	An indirect wholly- owned subsidiary An indirect wholly- owned subsidiary A subsidiary of the Company An indirect wholly- owned subsidiary Other related party Other related party An indirect wholly- owned subsidiary of Hon Hai Precision Industry Co., Ltd. An indirect wholly- owned subsidiary	Sales Sales Sales Sales Purchases Purchases Purchases Service revenue	$ 195,349 143,501 103,727 101,748 1,708,940 705,632 303,236 728,979	17 — 9 9 7 3 1 99	60 days 60 days 60 days 60 days 90 days 90 days 60 days 60 days	Similar with general transactions Similar with general transactions Similar with general transactions Similar with general transactions Similar with general transactions Similar with general transactions Similar with general transactions Similar with general transactions	No material difference No material difference No material difference No material difference No material difference No material difference No material difference No material difference	$ 120,811 34,743 27,028 40,833 (688,800) (331,380) (150,795) 181,394	20 — 6 7 9 4 2 100

Table�4�,�Page�3

Innolux Corporation and Subsidiaries

Receivables from related parties reaching $100 million or 20% of paid-in capital or more September 30, 2023

Table 5

Expressed in thousands of NTD (Except as otherwise indicated)

Creditor	Counterparty	Relationship with the counterparty	Balance as at September 30, 2023 (Note A)	Turnover rate	Overdue receivables	Overdue receivables	Amount collected subsequent to the balance sheet date Allowance for doubtful accounts
					Amount	Action taken
Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Ningbo Innolux Optoelectronics Ltd. Ningbo Innolux Display Ltd. Foshan Innolux Optoelectronics Ltd. Nanjing Innolux Optoelectronics Ltd. CarUX Technology Taiwan Inc.	CARUX TECHNOLOGY PTE. LTD. Innolux USA Inc. Hon Hai Precision Industry Co., Ltd. CarUX Technology Taiwan Inc. HONGFUJIN PRECISION ELECTRONICS (YANTAI) CO., LTD. CARUX TECHNOLOGY PTE. LTD. FIH (Hong Kong) Limited Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation CARUX TECHNOLOGY PTE. LTD.	An indirect wholly-owned subsidiary An indirect wholly-owned subsidiary Other related parties An indirect wholly-owned subsidiary An indirect wholly-owned subsidiary of Hon Hai Precision Industry Co., Ltd. An indirect wholly-owned subsidiary An indirect wholly-owned subsidiary of Hon Hai Precision Industry Co., Ltd. Ultimate parent company Ultimate parent company Ultimate parent company Ultimate parent company An indirect wholly-owned subsidiary	$ 10,321,143 1,484,593 308,487 255,472 (Shown as other receivables) 238,729 225,269 (Shown as other receivables) 150,277 9,729,022 7,991,982 5,154,467 2,915,685 2,831,277	2.00 3.70 0.77 — 3.79 — 3.54 1.75 3.91 5.46 2.10 4.14	$ 6,288,004 — 5,076 213,659 — 123,741 — 5,339,153 766,378 — 1,754,836 —	Subsequent collection — Subsequent collection Subsequent collection — Subsequent collection — Subsequent collection Subsequent collection — Subsequent collection —	$ 1,220,507 $ — 466,294 — 100,741 — — — 133,764 — 22,953 — — — 2,291,184 — 3,372,264 — 2,730,061 — 1,255,602 — 1,549,955 —

Table�5�,�Page�1

Creditor	Counterparty	Relationship with the counterparty	Balance as at September 30, 2023 (Note A)	Turnover rate	Overdue receivables	Overdue receivables	Amount collected subsequent to the balance sheet date Allowance for doubtful accounts
					Amount	Action taken
Ningbo Innolux Optoelectronics Ltd. CarUX Technology (Shanghai) Ltd. Innocom Technology (Shenzhen) Co., Ltd. InnoCare Optoelectronics Corporation CarUX Technology Europe B.V. InnoCare Optoelectronics Corporation	Ningbo Innolux Display Ltd. CARUX TECHNOLOGY PTE. LTD. Innolux Corporation InnoCare Optoelectronics Japan Co., Ltd. CARUX TECHNOLOGY PTE. LTD. InnoCare Optoelectronics USA, INC.	An indirect wholly-owned subsidiary An indirect wholly-owned subsidiary Ultimate parent company An indirect wholly-owned subsidiary An indirect wholly-owned subsidiary An indirect wholly-owned subsidiary	$ 1,171,835 759,660 691,594 371,051 181,394 120,811	6.87 13.78 0.59 4.62 6.05 2.77	$ — — 613,292 102,351 — 64,162	— — Subsequent collection Subsequent collection — Subsequent collection	$ 651,539 $ — 759,660 — — — 107,879 — 93,942 — 48,157 —

Note�A：For�the�information�on�receivables�of�loans�to�related�parties�reaching�NT$100�million�or�20%�of�paid-in�capital�or�more,�please�refer�to�Table�1.

Table�5�,�Page�2

Table 6

Innolux Corporation and Subsidiaries

Significant inter-company transactions during the reporting period

For the nine-month period ended September 30, 2023

Expressed in thousands of NTD (Except as otherwise indicated)

Number (Note A)	Companyname	Counterparty	Relationship (Note B)		Transaction	(Note D and E)
				General ledger account	Amount	Transaction terms (Note C) Percentage of consolidated total operatingrevenues or total assets
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 2	Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation CarUX Technology (Shanghai) Ltd. CarUX Technology (Shanghai) Ltd. CarUX Technology Europe B.V.	Innocom Technology (Shenzhen) Co., Ltd. Innocom Technology (Shenzhen) Co., Ltd. Nanjing Innolux Optoelectronics Ltd. Nanjing Innolux Optoelectronics Ltd. Ningbo Innolux Optoelectronics Ltd. Ningbo Innolux Optoelectronics Ltd. Foshan Innolux Optoelectronics Ltd. Foshan Innolux Optoelectronics Ltd. Foshan Innolux Optoelectronics Ltd. Ningbo Innolux Display Ltd. Ningbo Innolux Display Ltd. Innolux USA Inc. Innolux USA Inc. CarUX Technology Taiwan Inc. InnoCare Optoelectronics Corporation CARUX TECHNOLOGY PTE. LTD. CARUX TECHNOLOGY PTE. LTD. CARUX TECHNOLOGY PTE. LTD. CARUX TECHNOLOGY PTE. LTD. Ningbo CarUX Technology Ltd. CARUX TECHNOLOGY PTE. LTD. CARUX TECHNOLOGY PTE. LTD. CARUX TECHNOLOGY PTE. LTD.	1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 3 3 3	Processing expense Accrued expenses Processing expense Accrued expenses Processing expense Accrued expenses Sales Processing expense Accrued expenses Processing expense Accrued expenses Sales Accounts receivable Other receivables Sales Sales Service revenue Accounts receivable Other receivables Processing expense Processing revenue Accounts receivable Service revenue	$ 252,100 (691,594) 4,336,872 (2,915,685) 10,555,330 (9,729,022) 662,686 16,757,230 (5,154,467) 15,566,459 (7,991,982) 5,813,782 1,484,593 255,472 308,564 14,191,698 160,348 10,321,143 225,269 1,775,407 10,469,031 759,660 728,979	— — — — — 3 — 1 — 7 — 2 — — — 11 — 1 — 10 — 2 — 4 — — — — — — — 9 — — — 3 — — — 1 — 7 — — — —

Table�6�,�Page�1

Number (Note A)	Companyname	Counterparty	Relationship (Note B)		Transaction	(Note D and E)
				General ledger account	Amount	Transaction terms (Note C) Percentage of consolidated total operatingrevenues or total assets
2 3 3 4 5 6 7 7 8 8 8 8 8 9	CarUX Technology Europe B.V. Ningbo Innolux Optoelectronics Ltd. Ningbo Innolux Optoelectronics Ltd. Foshan Innolux Optoelectronics Ltd. Ningbo Innolux Display Ltd. Innolux Japan Co., Ltd. CarUX Technology Taiwan Inc. CarUX Technology Taiwan Inc. InnoCare Optoelectronics Corporation InnoCare Optoelectronics Corporation InnoCare Optoelectronics Corporation InnoCare Optoelectronics Corporation InnoCare Optoelectronics Corporation InnoCare Optoelectronics Japan Co., Ltd.	CARUX TECHNOLOGY PTE. LTD. Ningbo Innolux Display Ltd. Ningbo Innolux Display Ltd. Nanjing Innolux Optoelectronics Ltd. Ningbo Innolux Optoelectronics Ltd. Innolux Corporation CARUX TECHNOLOGY PTE. LTD. CARUX TECHNOLOGY PTE. LTD. Ningbo Innolux Electronics Ltd. InnoCare Optoelectronics Japan Co., Ltd. InnoCare Optoelectronics Japan Co., Ltd. InnoCare Optoelectronics USA, INC. InnoCare Optoelectronics USA, INC. InnoCare Optoelectronics Corporation	3 3 3 3 3 3 3 3 3 3 3 3 3 3	Accounts receivable Sales Accounts receivable Sales Sales Service revenue Processing revenue Accounts receivable Sales Sales Accounts receivable Sales Accounts receivable Sales	$ 181,394 4,455,553 1,171,835 143,501 579,687 209,761 7,713,267 2,831,277 101,748 505,301 371,051 195,349 120,811 103,727	— — — 3 — — — — — — — — — 5 — 1 — — — — — — — — — — — —

Note A: The information of transactions between the Company and the consolidated subsidiaries should be noted in “Number” column.

(1) Number 0 represents the parent company.

(2) The subsidiaries are numbered in order from number 1.

Note B: 1 refers to the parent company to the subsidiary.

3 refers to the subsidiary to the subsidiary.

Note C: Except for no comparable transactions from related parties, sales prices were similar to non-related parties transactions and the collection period was mainly 30~120 days; the purchases from related parties were at market

prices and payment term was 30~120 days upon receipt of goods.

Note D: Amount disclosure standard: purchases, sales and receivables from related parties in excess of $100 million or 20% of capital. Note E: For the information on transactions between the Company and the consolidated subsidiaries relating to nature of loan, please refer to Table 1.

Table�6�,�Page�2

Table 7

Innolux Corporation and Subsidiaries

Information on investees

For the nine-month period ended September 30, 2023

Expressed in thousands of NTD (Except as otherwise indicated)

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held	as at September 30,2023	as at September 30,2023	Net profit (loss) of the investee for the nine- month period ended September 30,2023	Investment income (loss) recognized by the Company for the nine-month period ended September 30,2023 Footnote
				Balance as at September 30, 2023	Balance as at December 31, 2022	Number of shares	Ownership (%)	Book value
Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation	Innolux Holding Limited Keyway Investment Management Limited Landmark International Ltd. Toppoly Optoelectronics (B.V.I.) Ltd. Innolux Hong Kong Holding Limited Innolux Singapore Holding Pte. Ltd. Yuan Chi Investment Co., Ltd. InnoJoy Investment Corporation InnoCare Optoelectronics Corporation Innolux Japan Co., Ltd. iZ3D, Inc. GIO Optoelectronics Corp. INStek Corporation Ampower Holding Ltd. FI Medical Device Manufacturing Co., Ltd. eLux Inc. PanelSemi Corporation	Samoa Samoa Samoa BVI Hong Kong Singapore Taiwan Taiwan Taiwan Japan USA Taiwan Taiwan Cayman Taiwan USA Taiwan	Investment holdings Investment holdings Investment holdings Investment holdings Investment holdings Investment holdings Investment company Investment company Holdings, R&D, manufacturing and distribution company Holdings, R&D and distribution company Research and development and sale of 3D flat monitor Holdings, R&D, manufacturing and distribution company R&D, manufacturing and distribution company Investment holdings Production and selling of the absorption for medical element R&D of MicroLED technology Design, manufacturing and sales of electronic parts	$ 7,618,559 62,197 33,438,542 3,674,115 3,231,780 754,943 1,217,235 1,674,054 202,000 1,682,751 — 451,168 — 844,091 73,500 91,155 250,000	$ 6,192,509 62,197 33,438,542 3,674,115 3,231,780 754,943 1,217,235 1,674,054 205,000 1,682,751 — 451,168 35,300 1,717,714 73,500 91,155 250,000	225,568,185 1,656,410 709,450,000 146,847,000 1,158,844,000 25,400,000 — 167,405,392 20,200,000 98 4,333 41,288,528 2,647,507 1 7,350,000 300,000 25,000,000	100 100 100 100 100 100 100 100 51 54 35 76 40 50 49 28 45	$ 20,047,739 115,650 58,509,044 7,113,980 5,837,625 166,519 851,932 3,042,082 644,615 2,202,608 — 390,878 — 49,470 327,466 1,935 116,018	$ 214,911 5,257 2,159,732 347,647 1,318,608 2,318 8,261 117,643 110,401 306,570 — (25,078) (5,620) 129,975 47,163 (53,124) (108,614)	$ 214,911 5,257 2,159,732 347,647 1,319,208 2,318 8,261 117,643 58,161 166,897 — (19,167) (2,248) 64,987 23,110 (18,850) (49,370)

Table�7�,�Page�1

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held	as at September 30,2023	as at September 30,2023	Net profit (loss) of the investee for the nine- month period ended September 30,2023	Investment income (loss) recognized by the Company for the nine-month period ended September 30,2023 Footnote
				Balance as at September 30, 2023	Balance as at December 31, 2022	Number of shares	Ownership (%)	Book value
Innolux Holding Limited Innolux Holding Limited Toppoly Optoelectronics (B.V.I.) Ltd. Innolux Hong Kong Holding Limited Innolux Hong Kong Holding Limited Innolux Hong Kong Holding Limited CarUX Holding Limited CarUX Holding Limited CARUX TECHNOLOGY PTE. LTD. CARUX TECHNOLOGY PTE. LTD. CARUX TECHNOLOGY PTE. LTD. Innolux Japan Co., Ltd. Rockets Holding Limited Rockets Holding Limited Suns Holding Ltd CarUX Technology Europe B.V. Innolux Singapore Holding Pte. Ltd. Yuan Chi Investment Co., Ltd.	Rockets Holding Limited Suns Holding Ltd Toppoly Optoelectronics (Cayman) Ltd. Innolux Hong Kong Limited Innolux Japan Co., Ltd. CarUX Holding Limited CARUX TECHNOLOGY PTE. LTD. Ultimate Fantasy Limited CarUX Technology Hong Kong Holding Limited CarUX Technology Europe B.V. CarUX Technology Taiwan Inc. Innolux USA Inc. Stanford Developments Limited Nets Trading Ltd. Warriors Technology Investments Ltd CarUX Technology Germany GmbH INNOLUX OPTOELECTRONICS INDIA PRIVATE LIMITED INNOLUX OPTOELECTRONICS INDIA PRIVATE LIMITED	Samoa Samoa Cayman Hong Kong Japan Cayman Singapore BVI Hong Kong Netherlands Taiwan USA Samoa Samoa Samoa Germany India India	Investment holdings Investment holdings Investment holdings Distribution company Holdings, R&D and distribution company Investment holdings Holdings and distribution company Investment holdings Investment holdings Holding, distribution and R&D testing company R&D, manufacturing and distribution company Distribution company Investment holdings Investment company Investment company Testing and maintenance company Distribution company Distribution company	$ 5,222,180 555,422 3,650,192 — 1,815,603 3,772,473 3,769,371 3 1,818,180 464,341 1,400,000 369,092 5,391,125 27,477 555,422 33,735 607,284 —	$ 5,222,180 555,422 3,650,192 — 1,815,603 3,772,473 3,769,371 — 1,818,180 464,341 1,400,000 369,092 5,391,125 27,477 555,422 33,735 607,284 —	160,504,550 18,177,052 146,817,000 35,000,000 82 125,231,749 125,131,749 — 162,897,802 375,810 140,000,000 12,842 164,000,000 900,001 18,177,052 100,000 144,095,499 1	100 100 100 100 46 95 100 — 100 100 100 100 100 100 100 100 100 —	$ 12,602,622 5,747,002 7,113,602 1,799,582 1,843,329 2,657,368 2,652,825 3 2,172,269 545,645 2,139,455 1,441,744 12,597,799 4,678 5,747,000 27,140 7,252 —	$ 130,206 84,705 347,647 471 306,570 1,125,490 1,122,779 — 165,185 32,202 369,571 242,305 150,065 (19,859) 84,705 921 298 298	$ 130,206 84,705 347,647 471 139,673 1,125,490 1,122,779 — (118,003) 32,202 232,842 242,305 150,065 (19,859) 84,705 921 298 —

Table�7�,�Page�2

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held	as at September 30,2023	as at September 30,2023	Net profit (loss) of the investee for the nine- month period ended September 30,2023	Investment income (loss) recognized by the Company for the nine-month period ended September 30,2023 Footnote
				Balance as at September 30, 2023	Balance as at December 31, 2022	Number of shares	Ownership (%)	Book value
Yuan Chi Investment Co., Ltd. Yuan Chi Investment Co., Ltd. InnoJoy Investment Corporation InnoJoy Investment Corporation Inno Capital Corporation InnoCare Optoelectronics Corporation InnoCare Optoelectronics Corporation InnoCare Optoelectronics Corporation GIO Optoelectronics Corp. Ultimate Fantasy Limited	GIO Optoelectronics Corp. InnVasLinx Inc. Inno Capital Corporation CDIB-Innolux Limited Partnership CDIB-Innolux Limited Partnership InnoCare Optoelectronics Japan Co., Ltd. InnoCare Optoelectronics USA, INC. Innocare Optoelectronics Europe B.V. Double Star Inc. CarUX Holding Limited	Taiwan Taiwan Taiwan Taiwan Taiwan Japan USA Netherlands Mauritius Cayman	Holdings, R&D, manufacturing and distribution company E-Paper Module/Assembly Investment company Investment company Investment company Distribution company Distribution company After-sales service company Investment holdings Investment holdings	$ 858 6,829 15,000 188,556 11,444 87,149 27,963 1,662 298,113 106,560	$ 858 6,829 15,000 122,561 7,439 87,149 27,963 1,662 298,113 —	77,235 599,799 1,500,000 — — 30,010 900,000 500 10,000,000 6,843,900	— 45 100 16 1 100 100 100 100 5	$ 743 6,947 17,764 229,089 13,905 126,019 34,731 3,256 104,869 110,205	$ (25,078) 1,013 1,129 194,207 194,207 34,453 2,057 433 1,409 1,125,490	$ (36) 456 1,129 31,997 1,942 34,453 2,057 433 1,409 —

Table�7�,�Page�3

Innolux Corporation and Subsidiaries Information on investments in Mainland China

Table 8

For the nine-month period ended September 30, 2023

Expressed in thousands of NTD (Except as otherwise indicated)

Investee in Mainland China	Main business activities	Paid-in capital (Note A)	Investment method (Note C)	Accumulated amount of remittance from Taiwan to Mainland China as of January 1, 2023	Amount remitted from Taiwan to Mainland China/ Amount remitted back to Taiwan for the nine-month period ended September 30, 2023	Amount remitted from Taiwan to Mainland China/ Amount remitted back to Taiwan for the nine-month period ended September 30, 2023	Accumulated amount of remittance from Taiwan to Mainland China as of September 30, 2023	Net income of investee for the nine-month period ended September 30, 2023	Ownership held by the Company (direct or indirect)	Investment income (loss) recognized by the Company for the nine- month period ended September 30, 2023(Note B)	Book value of investments in Mainland China as of September 30, 2023	Accumulated amount of investment income remitted back to Taiwan as of September 30, 2023	Footnote
					Remitted to Mainland China	Remitted back to Taiwan
Innocom Technology (Shenzhen) Co., Ltd. Ningbo Innolux Optoelectronics Ltd. Foshan Innolux Optoelectronics Ltd. Ningbo Innolux Display Ltd. Nanjing Innolux Technology Ltd. Nanjing Innolux Optoelectronics Ltd. CarUX Technology (Shanghai) Ltd. Foshan Innolux Logistics Ltd. GIO (Maanshan) Optoelectronics Co., Ltd.	Manufacturing and selling of LCD backend module and related components	$ 5,292,280	2 2 2 2 2 2 2 2 2 3 1	$ 4,095,442	$ —	$ —	$ 4,095,442	$ 150,065	100	$ 150,065	$ 12,597,745	$ 1,196,838	2.1 2.2 2.2 2.2 2.3 2.3 2.4 2.5 2.6
	Manufacturing and selling of LCD backend module and related components	10,003,700 12,359,410 5,163,200 67,767 5,034,120 677,670 48,405 322,700 1,258,488 69,082		237,670 12,359,410 5,163,200 67,767 4,648,029 — 48,405 322,700 — 102,360	— — — — — — — — — —	— — — — — — — — — —	237,670 12,359,410 5,163,200 67,767 4,648,029 — 48,405 322,700 — 102,360	971,652 732,328 453,940 9,675 337,972 165,185 5,066 1,416 45,428 13,045	100 100 100 100 100 95 100 77 100 51	971,652 734,135 453,940 9,675 337,972 165,185 5,066 1,084 45,698 6,550	27,104,798 24,324,235 7,078,780 669,156 6,444,424 2,459,035 110,112 81,736 1,110,482 62,963
	Manufacturing and selling of LCD backend module and related components
	Manufacturing and selling of LCD backend module and related components Purchases and sales of monitor-related components Manufacturing and selling of LCD backend module and related components Manufacturing and selling of LCD backend module and related components Warehousing services Manufacturing
Ningbo CarUX Technology Ltd.	Manufacturing and selling of LCD backend module and related components
Ningbo Innolux Electronics Ltd.	Manufacturing and selling of medical equipment

Table�8�,�Page�1

Ceiling on investments in Mai	nland China:
Companyname	Accumulated amount of remittance from Taiwan to Mainland China as of September 30, 2023	Investment amount approved by the Investment Commission of the Ministry of Economic Affairs (MOEA)	Ceiling on investments in Mainland China imposed by the Investment Commission of MOEA
Innolux Corporation	$ 26,393,093	$ 32,255,784	(Note D)

==> picture [218 x 114] intentionally omitted <==

Note A: The relevant figures were listed in NT$. Where foreign currencies were involved, the figures were converted to NT$ using exchange rate.

Note B: Profit or loss recognized for the nine-month period ended September 30, 2023 was reviewed by independent auditors.

Note C: The investment methods are as follows:

Directly investing in Mainland China.
Through investing in companies in the third area, which then invested in the investee in Mainland China.
2.1. Through investing in Stanford Developments Limited in the third area, which then invested in the investee in Mainland China.
2.2. Through investing in Landmark International Ltd. in the third area, which then invested in the investee in Mainland China.
2.3. Through investing in Toppoly Optoelectronics (Cayman) Ltd. in the third area, which then invested in the investee in Mainland China.
2.4. Through investing in CarUX Technology Hong Kong Holding Limited in the third area, which then invested in the investee in Mainland China.
2.5. Through investing in Keyway Investment Management Limited in the third area, which then invested in the investee in Mainland China.
2.6. Through investing in Double Star Inc. in the third area, which then invested in the investee in Mainland China.
Others.

The company invested via the company investment entities in Mainland China to invest in Ningbo CarUX Technology Ltd. Except for the investment via the holding companies in Mainland China,

other investments shall not be approved by Investment Commission of the Ministry of Economic Affairs.
Note D: In accordance with “Rules Governing Applications for Investment or Technical Cooperation in Mainland China”, the Company has obtained the certificate of being qualified for operating headquarters, issued by the Industrial
Development Bureau of the Ministry of Economic Affairs, the ceiling amount of the investment in Mainland China is not applicable to the Company.

Table�8�,�Page�2

AI assistant

INX — Interim / Quarterly Report 2023

52330_rns_2023-11-14_54b686f0-d282-4195-9e76-39d9e73eb8d4.pdf

INNOLUX CORPORATION AND SUBSIDIARIES

INDEPENDENT AUDITORS' REVIEW REPORT

Introduction

Scope of Review

Conclusion

Other matter – Reference to the reviews of other auditors

INNOLUX CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

SEPTEMBER 30, 2023, DECEMBER 31, 2022 AND SEPTEMBER 30, 2022

INNOLUX CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS SEPTEMBER 30, 2023, DECEMBER 31, 2022 AND SEPTEMBER 30, 2022

INNOLUX CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE-MONTH AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2023 AND 2022 (Expressed in thousands of New Taiwan dollars, except for earnings (loss) per share amounts)

INNOLUX CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE-MONTH AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2023 AND 2022

INNOLUX CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2023 AND 2022

INNOLUX CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2023 AND 2022

INNOLUX CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2023 AND 2022

INNOLUX CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2023 AND 2022

1. HISTORY AND ORGANIZATION

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

the Group

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

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(1) Compliance statement

(2) Basis of preparation

(3) Basis of consolidation

5. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF

ASSUMPTION UNCERTAINTY

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

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

(4) Financial assets at amortized cost

(5) Notes receivable and accounts receivable

(6) Inventories

(7) Investments accounted for under the equity method

(8) Property, plant and equipment

(9) Leasing arrangements－lessee

(10) Investment property

(11) Intangible assets

B. Details of amortization of intangible assets are as follows:

(12) Short-term borrowings

(13) Other payables

- (14) Long term borrowings

(15) Pensions

(16) Provisions-current

A. Warranty

B. Litigation and others

(17) Share capital

B. Capital reduction

(19) Retained earnings

(20) Other equity items

(22) Interest income

(26) Expenses by nature

(27) Employees’ compensation and directors’ remuneration

(28) Income tax

B. Purchases of goods

C. Receivables from related parties

E. Property transactions

Purchase of property

Disposal of other assets

(3) Key management compensation

8. PLEDGED ASSETS

Book value

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACT COMMITMENTS

－ (1) Contingencies Significant Litigations

(2) Commitments

10. SIGNIFICANT DISASTER LOSS

None.

12. OTHERS

(1) Capital management

(2) Financial instruments

C. Significant financial risks and degrees of financial risks

Foreign exchange risk

Price risk

INX Interim / Quarterly Report 2023