LD - Annual Report 2023 | FinancialReports.eu

Stock Code: 3588

Leadtrend Technology Corporation

Parent-company-only Financial Statements and Independent Auditors’ Report For the years ended Dec. 31, 2023 and 2022

Address: 4F-1, No. 1, Taiyuan 2[nd] Street, Zhubei City, Hsinchu County Tel: (03)5543588

§ Table of Contents §

				Number of Note
				to the Financial
		Item	Page	Statements
I.	Cover		1	-
II.	Table of Contents		2	-
III.	Independent Auditors’ Report		3～6	-
IV.	Parent-company-only Balance Sheet		7	-
V.	Parent-company-only Statement of		8～9	-
	Comprehensive Income
VI.	Parent-company-only Statement of		10	-
	Changes in Equity
VII.	Parent-company-only Statement of Cash		11～12	-
	Flows
VIII.	Notes to Parent-company-only Financial
	Statements
	(1)	Corporate History	13	1
	(2)	Date and Procedure of Adoption of	13	2
		Financial Statements
	(3)	Applicability of New and	13～14	3
		Amended Standards and
		Interpretations
	(4)	Explanations of Material	14～23	4
		Accounting Policies
	(5)	Main Sources of Material	23～24	5
		Accounting Judgments, Estimates
		and Assumption Uncertainty
	(6)	Explanation of Important	24～48	6～24
		Accounting Items
	(7)	Transactions with Related Parties	48	25
	(8)	Material Contingent Liabilities and	58	26
		Unrecognized Contractual
		Commitments
	(9)	Significant Subsequent Event	-	-
	(10)	Information of Foreign Currency	49～50	27
		Assets and Liabilities Having a
		Material Impact
	(11)	Disclosures in the Notes
		1. Information Relevant to Material	50	28
		Transactions
		2. Information Relevant to	50	28
		Reinvestments
		3. Information of Investments in	51	28
		Mainland China
		4. Information of Key Shareholders	51	28
	(12)	Information of Segments	-	-

Independent Auditors’ Report

To: Leadtrend Technology Corporation

Opinion

We have audited the financial statements of Leadtrend Technology Corporation, which comprise the parent-company-only balance sheet as of Dec. 31, 2023 and 2022 and the parent-company-only statement of comprehensive income, parent-company-only statement of changes in equity and parent-company-only statement of cash flows for the years then ended, and the notes to the parent-company-only financial statements (including a summary of material accounting policies).

In our opinion, the said parent-company-only financial statements are prepared, in all material respects, in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and present fairly the parent-company-only financial conditions of Leadtrend Technology Corporation as of Dec. 31, 2023 and 2022 and the parent-company-only financial performance and parent-company-only cash flows for the years then ended.

Basis of Opinion

We conducted our audit of the parent-company-only financial statements in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Delegated Certified Public Accountants and the Auditing Standards. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit section below. We and our accounting firm are independent of Leadtrend Technology Corporation in accordance with the Norm of Professional Ethics for Certified Public Accountant and have fulfilled our other responsibilities under the Norm. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are the matters that, in our professional judgment, were most important in our audit of the parent-company-only financial statements of Leadtrend Technology Corporation for the year ended Dec. 31, 2023. These matters were addressed in the process of our audit of the parent-company-only financial statements and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Key audit matters with respect to the parent-company-only financial statements of Leadtrend Technology Corporation for the year ended Dec. 31, 2023 are stated as follows:

Recognition of Sales Revenue

For the significant sales revenue amount of Leadtrend Technology Corporation, please refer to Note 18. Proceeds from sale of power management integrated circuits are the main revenue of Leadtrend Technology Corporation. To initiate the process of recognizing such revenue, the production management personnel provide the delivery order to get the products ready for the customer as instructed by the business segment. After the products to be shipped are ready, quality assurance personnel are informed and requested to inspect the products. After products are inspected and qualified, production management personnel sign and affix the official seal to the delivery order and the finished goods outbound order,
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have the products shipped after the approval of the authorized supervisor, and update the stock details in the operating system. Then the accountant recognizes the sales revenue based on the delivery order signed by the customer or the shipping company.

As the aforementioned transaction involves manual control, the risk of recognizing revenue by mistake or without obtaining the delivery order signed by the customer or the shipping company exists.
We consider the revenue recognition policy of Leadtrend Technology Corporation and evaluate appropriateness of the revenue recognition by understanding and testing the effectiveness of the internal controls on the approval of orders and the shipment procedures, sampling the vouchers relevant to sales revenue, reviewing the amounts received in cash or subsequent cash receipts in order to verify the existence and occurrence of the sales, and also check whether any abnormality about the entity to which products have been sold and the entity receiving payments exists.

Inventory Evaluation

Refer to Note 8 of the parent-company-only financial statements. It is significant that the inventory balance of Leadtrend Technology Corporation accounted for 29% of the total assets as of Dec. 31, 2023. Valuation allowance for inventories is a material accounting estimate. Leadtrend Technology Corporation engages in design and development of integrated circuits, and sells products after outsourcing manufacturing. As such products can be replaced fast in the highly competitive industry, inventory depreciation and obsolescence risks may exist.

At the specific aspects stated in any of the most important matters for the audit conducted this year, we have carried out the primary audit procedures as follows:

Understand and evaluate the rationality of the inventory valuation policy adopted by the management.
Obtain the evaluation information about the lower of inventory cost or net realizable value, sample and review the latest information of selling prices of inventories to verify the net realizable value of inventories, and compare the net realizable value of inventories with the book cost of inventories to test the rationality of the amount allocated as inventory loss. Obtain the inventory aging statements, sample and review the inventory change information to test whether the inventory aging classification, inventory quantity and amount are consistent in order to verify the accuracy and completeness of the inventory aging statements. Then verify the rationality of the amount allocated as inventory obsolescence loss pursuant to the inventory evaluation policy.
Carry out inventory retrospectability testing. Review the status of inventory write-off and compare with the inventory obsolescence loss allocation policy to verify whether the inventory obsolescence loss allocated for the current period is proper.

Responsibilities of Management and those Charged with Governance for the Parent-company-only Financial Statements

Management is responsible for preparation and fair presentation of the parent-company-only financial statements in accordance with the Regulations

Governing the Preparation of Financial Reports by Securities Issuers, and also responsible for maintenance of the internal controls associated with the preparation of the parent-company-only financial statements, to ensure the parent-company-only financial statements free from material misstatement, whether due to fraud or error.

In preparing the parent-company-only financial statements, management is also responsible for assessing the ability of Leadtrend Technology Corporation to continue, as a going concern, disclosing any and all relevant matters and using the going concern basis of accounting unless management either intends to liquidate Leadtrend Technology Corporation or cease operations, or has no feasible alternative but to do so. Those charged with governance (including the audit committee) are responsible for overseeing the financial reporting process of Leadtrend Technology Corporation. Auditors’ Responsibilities for the Audit of the Parent-company-only Financial Statements

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

In conducting the audit in accordance with the auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also :

Identify and assess the risks of material misstatement of the parent-company-only financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for the one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls.
Obtain an understanding of the internal controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal controls of Leadtrend Technology Corporation.
Evaluate the appropriateness of accounting policies used, and the reasonableness of accounting estimates and related disclosures made, by management.
Conclude, based on the audit evidence obtained, on the appropriateness of the management’s use of the going concern basis of accounting, and whether a material uncertainty exists that is associated with any events or conditions casting significant doubt on the ability of Leadtrend Technology Corporation to continue as a going concern. If we believe that a material uncertainty exists, we are required to draw attention in our auditors’ report to the relevant disclosures in the parent-company-only financial statements, or to modify our opinion if such disclosures are inadequate. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or
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conditions may cause Leadtrend Technology Corporation to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the parent-company-only financial statements (including the notes thereof) and whether the parent-company-only financial statements appropriately represent the underlying transactions and events.
Obtain sufficient and appropriate audit evidence regarding the financial information of the entities in Leadtrend Technology Corporation to express an opinion on the parent-company-only financial statements. We are responsible for the direction, supervision and performance of the audit, and also responsible for our audit opinion.

We have communicated with those charged with governance about the planned scope and timing of the audit, and significant audit findings (including any and all significant flaws identified, during our audit, in the internal controls).

We have also provided those charged with governance with a statement, declaring that we as CPAs comply with applicable ethical requirements regarding independence, and have communicated with them about all relationships and other matters that may reasonably be considered to influence our independence (including relevant protection measures).

From the matters communicated with those charged with governance, we have determined the key audit matters in the audit of the parent-company-only financial statements of Leadtrend Technology Corporation for the year ended Dec. 31, 2023. We have described these matters in our auditors’ report unless any law or regulation prohibits the matters from being disclosed or when, in extremely rare circumstances, we decide that the matters should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interests to be facilitated.

Deloitte & Touche Huang Yu-Feng, CPA Tsai Mei-Chen, CPA

Securities and Futures Bureau Financial Supervisory Commission Approval No.: Approval No.: Tai-Cai-Zheng-6-Zi-0920123784 Jin-Guan-Zheng-Shen-Zi-1010028123

Feb. 29, 2024

Leadtrend Technology Corporation

Parent-company-only Balance Sheet

Dec. 31, 2023 and 2022

	Dec. 31, 2023 and	2022
					(In Thousands of New Taiwan Dollars)
				Dec. 31,	2023			Dec. 31,2022
Code	Assets		Amount			%	Amount			%
	Current assets
1100	Cash and cash equivalents (Notes 4 and 6)		$	439,220		24	$	223,300		12
1170	Accounts receivable (Notes 4, 5, 7 and 18)			108,662		6		103,592			5
1180	Accounts receivable－Related parties (Notes 4, 5, 7
	18 and 25)			40,266		2		29,074			2
130X	Inventories (Notes 4, 5 and 8)			541,979		29		750,880		40
1470	Other current assets (Notes 13 and 25)			14,360		1		34,071			2
11XX	Total current assets			1,144,487		62		1,140,917		61
	Non-current assets
1550	Investments accounted for using equity method
	(Notes 4 and 9)			235,499		13		207,124		11
1600	Property, plant and equipment (Notes 4 and 10)			431,913		23		480,674		26
1755	Right-of-use assets (Notes 4 and 11)			12,165		1		14,897			1
1780	Intangible assets (Notes 4 and 12)			11,132		1		13,829			1
1840	Deferred income tax assets (Notes 4 and 20)			541		-		91			-
1990	Other non-current assets (Notes 4 and 13)			5,272		-		7,788			-
15XX	Total non-current assets			696,522		38		724,403		39
1XXX	Total assets		$	1,841,009		100	$	1,865,320		100
	Liabilities and Equity
	Current liabilities
2170	Accounts payable		$	94,183		5	$	58,122			3
2200	Remunerations payable to employees and directors
	(Note 19)			19,215		1		37,508			2
2230	Current tax liabilities (Notes 4 and 20)			10,844		1		15,120			1
2280	Lease liabilities－Current (Notes 4 and 11)			8,430		1		7,878			1
2399	Other current liabilities (Note 14)			60,912		3		81,510			4
21XX	Total current liabilities			193,584		11		200,138		11
	Non-current liabilities
2580	Lease liabilities－Non-current (Notes 4 and 11)			4,232		-		7,189			-
2640	Net defined benefit liabilities－Non-current (Notes 4
	and 15)			-		-		4,840			-
2645	Guarantee deposits received			232		-		202			-
25XX	Total non-current liabilities			4,464		-		12,231			-
2XXX	Total liabilities			198,048		11		212,369		11
	Equity (Notes 4, 16 and 17)
	Share capital
3110	Ordinary share			589,178		32		568,838		30
	Capital reserve
3210	Share premium			254,672		14		258,027		14
3251	Donations received from shareholders			84,732		4		84,732			4
3273	Employee restricted stock award shares			50,306		3		47,567			3
3280	Others			125		-		106			-
	Retained earnings
3310	Legal reserve			215,284		12		199,793		11
3350	Unappropriated earnings			485,253		26		520,231		28
	Other equity
3410	Exchange differences on translation of foreign
	operations’ financial statements	(		786 )		-		5,602			1
3491	Employees’ unearned compensation	(		35,803)	(	2)	(	31,945)	(		2)
3XXX	Total equity			1,642,961		89		1,652,951		89
	Total liabilities and equity		$	1,841,009		100	$	1,865,320		100

The accompanying notes constitute part of the parent-company-only financial statements.

Chairman: Kao Yu-Kun Manager: Chi Heng-Chung Accounting Manager: Huang Ya-Ching

Leadtrend Technology Corporation

Parent-company-only Statement of Comprehensive Income

for the years ended Dec. 31, 2023 and 2022

(In Thousands of New Taiwan Dollars, Except Earnings Per Share)

Code Operating revenue (Notes 4, 18 and 25) 4110 Sales revenue 4170 Sales return and allowance 4000 Net operating revenue Operating cost (Notes 9, 15 and 19) 5110 Cost of goods sold 5900 Gross profit 5910 Unrealized profit from sales (Note 4) 5920 Realized profit from sales (Note 4) 5950 Realized gross profit Operating expenses (Notes 15 and 19) 6100 Selling expense 6200 Management expense 6300 Research and development expense 6000 Total operating expenses 6900 Net operating profit (loss) Non-operating incomes and expenses (Note 19) 7100 Interest income 7010 Other incomes (Note 22) 7020 Other gains and losses 7050 Financial cost 7070 Share of profit or loss of subsidiaries accounted for using the equity method (Notes 4 and 9) 7000 Total non-operating incomes and expenses		2023

(Continued on next page)

(Brought forward from previous page)

(Brought forward from previous page)
Code 7900 Profit before tax 7950 Tax (income) expense (Notes 4 and 20) 8200 Net profit of the year Other comprehensive incomes (losses) 8310 Items not reclassified subsequently to profit or loss: 8311 Remeasurement for defined employee benefit plan (Note 15) 8360 Items that may be reclassified subsequently to profit or loss: 8361 Exchange differences on translation of foreign financial statements (Note 16) 8300 Total other comprehensive incomes (losses) (Net) 8500 Total comprehensive incomes (losses) for the year Earnings per share (Note 21) 9750 Basic 9850 Diluted		2023		% 3 - 3 - 1) 1) 2	2022
		Amount $ 24,722 4,142) 28,864 - 6,388) 6,388) $ 22,476 $ 0.50 $ 0.49			Amount $ 190,201 37,838 152,363 2,552 3,735 6,287 $ 158,650 $ 2.66 $ 2.59	%
	( ( (		( (			12 2 10 - - - 10

The accompanying notes constitute part of the parent-company-only financial statements.

Chairman: Kao Yu-Kun Manager: Chi Heng-Chung Accounting Manager: Huang Ya-Ching

Leadtrend Technology Corporation

Parent-company-only Statement of Changes in Equity for the years ended Dec. 31, 2023 and 2022 (In thousands of New Taiwan Dollars, except as otherwise indicated herein)

Common share capital Number of shares (In Thousands) Amount 52,864 $ 528,646 - - - - 3,697 36,967 3,697 36,967 - - - - - - - - - - 420 4,200 - - ( 98 ) ( 975 ) - - 56,883 568,838 - - - - 1,707 17,065 1,707 17,065 - - - - - - - - - - 420 4,200 - - ( 92 ) ( 925 ) - - 58,918 $ 589,178	Common share capital Number of shares (In Thousands) Amount 52,864 $ 528,646 - - - - 3,697 36,967 3,697 36,967 - - - - - - - - - - 420 4,200 - - ( 98 ) ( 975 ) - - 56,883 568,838 - - - - 1,707 17,065 1,707 17,065 - - - - - - - - - - 420 4,200 - - ( 92 ) ( 925 ) - - 58,918 $ 589,178		Capital	reserve		Retained earnings			Other equity Exchange differences on translation of financial statements of foreign operations Employees’ unearned compensation $ 1,867 ( $ 42,573 ) - - - - - - - - - - - - - - 3,735 - 3,735 - - ( 19,782 ) - - - - - 30,410 5,602 ( 31,945 ) - - - - - - - - - - - - - - ( 6,388) - ( 6,388) - - ( 27,930 ) - - - - - 24,072 ($ 786) ($ 35,803)	Other equity Exchange differences on translation of financial statements of foreign operations Employees’ unearned compensation $ 1,867 ( $ 42,573 ) - - - - - - - - - - - - - - 3,735 - 3,735 - - ( 19,782 ) - - - - - 30,410 5,602 ( 31,945 ) - - - - - - - - - - - - - - ( 6,388) - ( 6,388) - - ( 27,930 ) - - - - - 24,072 ($ 786) ($ 35,803)		Total equity
		Share premium $ 273,131 - - - - ( 26,405 ) - - - - - 11,301 - - 258,027 - - - - ( 19,909 ) - - - - - 16,554 - - $ 254,672	Donations received from shareholders $ 84,732 - - - - - - - - - - - - - 84,732 - - - - - - - - - - - - - $ 84,732	Employee restricted stock award shares $ 51,708 - - - - - - - - - 15,582 ( 11,301 ) 975 ( 9,397) 47,567 - - - - - - - - - 23,730 ( 16,554 ) 925 ( 5,362) $ 50,306					Exchange differences on translation of financial statements of foreign operations $ 1,867 - - - - - - - 3,735 3,735 - - - - 5,602 - - - - - - - ( 6,388) ( 6,388) - - - - ($ 786)
Number of shares (In Thousands) 52,864 - - 3,697 3,697 - - - - - 420 - ( 98 ) - 56,883 - - 1,707 1,707 - - - - - 420 - ( 92 ) - 58,918					Legal reserve $ 166,987 32,806 - - 32,806 - - - - - - - - - 199,793 15,491 - - 15,491 - - - - - - - - - $ 215,284	Unappropriated earnings $ 582,957 ( 32,806 ) ( 147,868 ) ( 36,967) ( 217,641) - - 152,363 2,552 154,915 - - - - 520,231 ( 15,491 ) ( 31,286 ) ( 17,065) ( 63,842) - - 28,864 - 28,864 - - - - $ 485,253		Total
( (	( (	( (		( ( ( (		( ( ( ( ( ( ( (	( ( ( ( ( (	$ 749,944 - 147,868 ) 36,967) 184,835) - - 152,363 2,552 154,915 - - - - 720,024 - 31,286 ) 17,065) 48,351) - - 28,864 - 28,864 - - - - $ 700,537	( ( (	( ( ( ( (	( ( ( ( ( ( (	$ 1,647,553 - 147,868 ) - 147,868) 26,405 ) 8 152,363 6,287 158,650 - - - 21,013 1,652,951 - 31,286 ) - 31,286) 19,909 ) 19 28,864 6,388) 22,476 - - - 18,710 $ 1,642,961

The accompanying notes constitute part of the parent-company-only financial statements.

Chairman: Kao Yu-Kun

Manager: Chi Heng-Chung

Accounting Manager: Huang Ya-Ching

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Leadtrend Technology Corporation

Parent-company-only Statement of Cash Flows for the years ended Dec. 31, 2023 and 2022

(In Thousands of New Taiwan Dollars)

Code Cash flows from operating activities A10000 Profit before tax A20010 Incomes, expenses and losses: A20100 Depreciation expense A20200 Amortization expense A20900 Financial cost A21200 Interest income A21900 Compensation cost for employee restricted stock award shares A22400 Share of profit or loss of subsidiaries accounted for using the equity method A23200 Proceeds from disposal of subsidiaries recognized by using equity method A22500 Net gain on disposal of property, plant and equipment A23900 Unrealized profit on intercompany sales A24000 Realized profit on intercompany sales A29900 Profit from lease modification A24100 Net exchange loss A30000 Net change in operating assets and liabilities A31150 Decrease (increase) in accounts receivable A31160 Decrease (increase) in accounts receivable – Related parties A31200 Decrease (increase) in inventories A31240 Decrease in other current assets A32150 Increase (decrease) in accounts payable A32200 Decrease in remunerations payable to employees and directors	2023 $ 24,722 79,199 10,516 338 ( 4,073 ) 18,710 ( 38,080 ) ( 1,139 ) ( 1,843 ) 28,146 ( 27,245 ) - 2,249 ( 7,819 ) ( 11,165 ) 208,901 4,843 37,091 ( 18,293 )	2022
		$ 190,201 81,204 13,194 433 ( 3,354 ) 21,013 ( 23,517 ) - - 55,786 ( 24,080 ) ( 20 ) 340 119,474 64,033 ( 322,889 ) 3,892 ( 189,607 ) ( 40,813 )

(Continued on next page)

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(Brought forward from previous page) Code A32230 Decrease in other current liabilities A32240 Decrease in net defined benefit liabilities A33000 Net cash provided by (used in) operations A33300 Interest paid A33500 Income tax paid AAAA Net cash generated by operating activities Cash flows from investing activities B01900 Net cash generated from disposal of subsidiaries B02700 Acquisition of property, plant and equipment B02800 Proceeds from disposal of property, plant and equipment B03700 Decrease (increase) in refundable deposits B04500 Acquisition of intangible assets B07500 Interest received BBBB Net cash used in investing activities Cash flows from financing activities C03000 Increase in guarantee deposits received C04020 Payments of lease liabilities C04500 Allocated cash dividends C09900 Other financing activities CCCC Net cash used in financing activities DDDD Effect of exchange rate changes on cash and cash equivalents EEEE Increase (decrease) in cash and cash equivalents for the year E00100 Balance of cash and cash equivalents at the beginning of the year E00200 Balance of cash and cash equivalents at the end of the year	2023 ( $ 17,316 ) ( 4,840) 282,902 ( 338 ) ( 584) 281,980 3,555 ( 31,095 ) 10,395 15,227 ( 7,819 ) 3,903 ( 5,834) 30 ( 8,561 ) ( 51,195 ) 19 ( 59,707) ( 519) 215,920 223,300 $ 439,220	2022
		( $ 3,911 ) ( 2,302) ( 60,923 ) ( 433 ) ( 81,973) ( 143,329) - ( 118,835 ) - ( 14,520 ) ( 17,519 ) 3,432 ( 147,442) 11 ( 8,859 ) ( 174,273 ) 8 ( 183,113) 103 ( 473,781 ) 697,081 $ 223,300

The accompanying notes constitute part of the parent-company-only financial statements.

Chairman: Kao Yu-Kun Manager: Chi Heng-Chung Accounting Manager: Huang Ya-Ching

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Leadtrend Technology Corporation

Notes to Parent-company-only Financial Statements

for the years ended Dec. 31, 2023 and 2022

(In thousands of New Taiwan Dollars, except as otherwise indicated herein)

I. Corporate History

Leadtrend Technology Corporation (hereinafter referred to as the Company), incorporated on Sep. 18, 2002 after the approval of Ministry of Economic Affairs, mainly engages in research, development, production, manufacturing and sale of analog integrated circuits.

Stocks of the Company have been traded at Taiwan Stock Exchange Corporation since Aug. 14, 2009.

The New Taiwan Dollar, the functional currency adopted by the Company, is used to express amounts indicated in the parent-company-only financial statements.

II. Date and Procedure of Adoption of Financial Statements

The parent-company-only financial statements were approved by the board of directors on Feb. 29, 2024 to be published.

III. Applicability of New and Amended Standards and Interpretations

(A) We initially apply International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC) and SIC Interpretations (SIC) (hereinafter referred to as IFRSs) endorsed and issued into effect by the Financial Supervisory Commission (hereinafter referred to as the FSC).
Application of the IFRSs, which are recognized and published by the FSC, does not cause any significant change in accounting policies of the Company.
(B) IFRSs Recognized by the FSC and Applied by the Company for 2024

Standards Published / Amended / Revised and Interpretations Amendments to IFRS 16 Lease Liability in a Sale and Leaseback Amendments to IAS 1 Classification of Liabilities as Current or Non-current Amendments to IAS 1 Non-current Liabilities with Covenants Amendments to IAS 7 and IFRS 7 Supplier Finance Arrangements	Effectiveness Date Announced by International Accounting Standards Board(IASB) (Note 1)
	Jan. 1, 2024 (Note 2) Jan. 1, 2024 Jan. 1, 2024 Jan. 1, 2024 (Note 3)

Note 1: Except otherwise as indicated, the standards newly published/amended/revised or interpretations shall come into effect from the annual reporting period after the indicated date.

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Note 2: The seller that is also a lessee shall adopt the amendments to IFRS 16 retroactively for the sale and leaseback transactions made after initially implementing IFRS 16.
Note 3: Initial application of the amendments is exempted from the provisions for partial disclosure.

As of the date of publication of the parent-company-only financial statements, the Company believed, based on its evaluation, that the amendments to the aforementioned standards and interpretations had no significant impact on its financial conditions and financial results.

Effectiveness Date Standards Published / Amended / Revised and Announced by IASB Interpretations (Note 1) Amendments to IFRS 10 and IAS 28 Sale or Not decided yet. Contribution of Assets between an Investor and its Associate or Joint Venture IFRS 17 Insurance Contracts Jan. 1, 2023 Amendments to IFRS 17 Jan. 1, 2023 Amendments to IFRS 17 Initial Application of Jan. 1, 2023 – IFRS 17 and IFRS 9 Comparative Information Amendments to IAS 21 Lack of Exchangeability Jan. 1, 2025 (Note 2)

Note1: Except otherwise as indicated, the standards newly published/amended/revised or interpretations shall come into effect from the annual reporting period after the indicated date.
Note2: They are applicable for the annual reporting periods beginning after January 1, 2025. When the amendments are initially applied, effects will be recognized in retained earnings on the date of initial application. When the Company uses a non-functional currency as the presentation currency, effects will be applied to adjust the exchange differences on translating foreign operations under equity on the date of initial application.

As of the date of publication of the parent-company-only financial statements, the Company still continued evaluating the impact of the amendments to the aforementioned standards and interpretations on its financial conditions and financial results. Relevant impacts will be disclosed after the evaluation is completed.

IV. Explanations of Material Accounting Policies

(A) Declaration of Compliance

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

(B) Preparation Basis
The parent-company-only financial statements are prepared on the basis of historical cost, except for the financial instruments at fair value, and the net
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defined benefit liability recognized based on the present value of defined benefit obligations less the fair value of plan assets.

Fair value measurement is classified from level 1 to level 3 based on observable level and importance of relevant inputs.

Level 1 Inputs: They refer to the prices of the same assets or liabilities obtained in the active market on measurement date (not adjusted).
Level 2 Inputs: They refer to direct inputs (i.e. prices) or indirect inputs (presumed from prices) observable, except level 1 prices, for assets or liabilities.
Level 3 Inputs: They refer to inputs not observable for assets or liabilities. The Company used the equity method to treat investee subsidiaries when preparing the parent-company-only financial statements. To ensure that the profit or loss of the current year, other comprehensive incomes and equity specified in the parent-company-only financial statements are the same as the profit or loss of the current year, other comprehensive incomes and equity attributed to owners of the Company in the Company’s consolidated financial statements, the Company adjusted the ”investments accounted for using the equity method,” “share of profit or loss of subsidiaries accounted for using the equity method” and relevant equity items to respond to accounting treatment differences when preparing the parent-company-only and consolidated financial statements.
(C) Standards of Distinguishing Current Assets and Liabilities from Non-current Assets and Liabilities

Current assets include:

Assets held primarily for sale;
Assets expected to be realized within 12 months after the balance sheet date; and
Cash and cash equivalents (not including the same that would be used to exchange or pay off liabilities 12 months after the balance sheet date and be therefore restricted).

Current liabilities include:

Liabilities held primarily for sale;
Liabilities due and repaid within 12 months after the balance sheet date; an
Liabilities for which the repayment period cannot be unconditionally postponed to at least 12 months after the balance sheet date.

The assets and liabilities which are not listed as current assets and current liabilities above are classified as non-current assets and non-current liabilities.

(D) Foreign Currency
The functional currency adopted by the Company is the New Taiwan Dollar. For the transactions completed by the Company using a (foreign) currency rather than its functional currency, the Company converts the foreign currency to the functional currency at the exchange rate prevailing on the date of transaction in preparing the parent-company-only financial statements. Foreign monetary items are converted at the closing rate on the balance sheet date. Exchange differences generated from the transfer or conversion of monetary items are recognized in profit or loss for the current year when the differences occur.
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Foreign currency non-monetary items measured at fair value are converted at the exchange rate on the date when fair value is determined. Exchange differences generated are listed as profits or losses for the current year. However, in case of changes in fair value recognized in other comprehensive incomes or losses, the exchange differences generated are listed as other comprehensive incomes or losses.

Foreign currency non-monetary items measured at historical cost are converted at the exchange rate on the date of transaction and will not be re-converted.

In preparing the parent-company-only financial statements, the Company converts the assets and liabilities of the foreign operations (including the subsidiaries using, and the subsidiaries operating in the countries using, any currency that differs from the currency used by the Company) to NT dollars at the exchange rate on the balance sheet date. Incomes and expenses are converted at the average exchange rate of the current year. Exchange differences generated are recognized as other comprehensive incomes or losses.

If the Company disposes all equity of a foreign operation, then the accumulate exchange differences relevant to the foreign operation will be reclassified to profits or losses.

(E) Inventories
Inventories include raw materials, work in process and finished goods. Inventories are measured by using the lower of cost or net realizable value method. Cost and net realizable value are compared base on each individual item, except the same type of inventories. Net realizable value refers to the amount of the selling price, estimated in normal circumstances, from which the estimated cost required to be put in prior to the completion and the estimated cost needed for the completion of sale are subtracted. Cost of inventories is calculated by use of the weighted average method.
(F) Investments in Subsidiaries
The Company uses the equity method to treat its investments in subsidiaries. A subsidiary means an entity controlled by the Company.
With the equity method, investments are originally recognized at cost. After the date of acquisition, the book amount increases or decreases subject to the share of profits, losses, other comprehensive incomes and distributed profits to be enjoyed by the Company from subsidiaries. In addition, changes in other equity of subsidiaries to be enjoyed by the Company are recognized proportionally based on the ratio of shareholding.
When changes in the Company’s ownership interests in a subsidiary do not cause the Company to lose its control over the subsidiary, the changes are treated as an equity transaction. The difference between the book amount of the investment and the fair value of the consideration paid or received is recognized as equity directly.
When the Company’s share of loss in a subsidiary equals or exceeds its interests in the subsidiary (including the book amount of investments in the subsidiary accounted for using the equity method, and other long-term interests substantially comprising the Company’s net investments in the subsidiary), the Company shall recognize loss based on the ratio of shareholding.
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Acquisition cost exceeding the Company’s share of the identifiable assets and liabilities of subsidiaries in fair value on the date of acquisition is recognized as goodwill. The goodwill is included in the book amount of the investments and shall not be amortized. When the share of the identifiable assets and liabilities of subsidiaries in fair value enjoyed by the Company on the acquisition date exceeds the amount of the acquisition cost, such excess is recognized as profit for the current year.

In evaluating impairment, the Company uses the financial statements as a whole to consider cash-generating units and compares the recoverable amount with the book amount. If the recoverable amount of the asset increases afterward, the reversal of impairment loss is recognized as profit. However, the book amount of the asset after the impairment loss is reversed shall not exceed the book amount of the asset from which the amortization to be allocated is subtracted before the impairment loss is recognized for the asset. Unrealized profits or losses from downstream transactions between the Company and a subsidiary are eliminated from the parent-company-only financial statements. Profits or losses generated from upstream and sidestream transactions between the Company and a subsidiary are recognized in the parent-company-only financial statements only to the extent that the equity of the subsidiary owned by the Company is not relevant.

(G) Property, Plant and Equipment Property, plant and equipment are recognized at cost and measured subsequently based on the amount of cost less both accumulated depreciation and accumulated impairment loss.

The self-owned land is not depreciated while each important portion of other property, plant and equipment within service life is depreciated by use of the straight line method. The Company reviews the estimated service life, residual value and depreciation method at least at the end of every year and put off the impact on applicable changes in accounting estimates.

Upon derecognition of property, plant and equipment, the difference between the net proceeds on disposal and the book amount of the assets is recognized in profits or losses.

(H) Intangible Assets
Individual Acquisition Intangible assets with limited service life acquired individually are originally measured at cost and measured subsequently based on the amount of cost less accumulated amortization and accumulated impairment loss. Intangible assets are amortized within service life by use of the straight line method. Estimated service life, residual value and amortization method are reviewed at least at the end of every year and the impact on applicable changes in accounting estimates is put off.
Derecongition Upon derecongition of intangible assets, the difference between the net disposal proceeds and the book amount to such assets is recognized in profits or losses for the current year.
(I) Impairment of Property, Plant and Equipment, Right-of-use Assets and Intangible Assets
The Company evaluates on every balance sheet date whether there is any sign indicating that property, plant and equipment, right-of-use assets or intangible
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assets may be impaired. In case of any sign of impairment, a recoverable amount is estimated for the assets. If a recoverable amount cannot be estimated for any individual asset, the Company will estimate the recoverable amount of the cash generating unit (“CGU”) of the concerned asset. In case that corporate assets are shared among CGUs on the basis of reasonable consensus, corporate assets shall be shared among individual CGUs. Otherwise, corporate assets shall be shared among the smallest CGU groups that are shared on the basis of reasonable consensus.

The recoverable amount is the higher of fair value less costs to sell and use value. If the recoverable amount of individual assets or CGUs is less than the book amount thereof, then the book amount of the assets or CGUs will be reduced to the recoverable amount, and the impairment loss will be recognized in profits or losses.

Upon subsequent reverse of impairment loss, the book amount of the assets or CGUs is increased to the revised recoverable amount. However, the increased book amount shall not exceed the book value (less amortization or depreciation) that would be determined if the impairment loss of the assets or CGUs had not been recognized in the previous year. Reverse of impairment loss is recognized in profits or losses.

(J)

Financial Instruments

Financial assets and financial liabilities are recognized in the parent-company-only balance sheet when the Company becomes a party to the contract concerning the instruments.

If financial assets or financial liabilities are not measured at fair value through profit or loss (“FVTPL”), the financial assets or financial liabilities, upon original recognition, are measured at fair value plus the transaction cost attributable directly to the obtained or issued financial assets or financial liabilities. The transaction cost attributable directly to the obtained or issued financial assets or financial liabilities at FVTPL is recognized as profits or losses immediately.

Financial Assets Routine transactions of financial assets are recognized or derecognized on transaction date.
(1) Type of Measurement Financial assets held by the Company are financial assets measured at amortized cost.

Financial Assets at Amortized Cost

Financial assets invested by the Company are classified as the financial assets measured at amortized cost if both of the following conditions are satisfied simultaneously:
A. The financial assets are possessed in a specific business model, and the model is used to acquire contractual cash flows by possessing financial assets; and
B. Cash flows generated on the specific date as provided in contractual terms are completely used for payment of principals and the interest on the outstanding principals.
After being recognized originally, the financial assets measured at amortized cost (including cash and cash equivalents, accounts receivable and refundable deposits) are measured at the amortized
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cost of the total book amount less any impairment loss determined by the effective interest method. Foreign exchange gains or losses are recognized in profits or losses.

Interest income is computed based on the effective interest rate multiplied by the total book amount of financial assets, except in either of the following situations:

A. For the financial assets or credit-impaired purchased
established, interest income is computed based on the effective interest rate, after credit adjustment, multiplied by the amortized cost of the financial assets.
B. If the financial assets without credit impairment upon purchase or establishment become credit-impaired subsequently, then interest income is computed based on the effective interest rate multiplied by the amortized cost of the financial assets.
Cash equivalents refer to the time deposits that are highly liquid and may be transferred to a fixed amount of cash any time with minimal risk of changes in value to fulfill short-term cash commitments.
(2) Impairment of Financial Assets

The Company evaluates impairment loss of financial assets at amortized cost (including accounts receivable) based on the expected credit loss every balance sheet date.

Loss allowances for accounts receivable are recognized based on the expected credit loss for the duration of accounts receivable. As for other financial assets, the Company determines whether credit risk increases significantly after the original recognition of such other financial assets. If the risk does not increase significantly, then loss allowances for other financial assets are recognized based on the expected credit loss for 12 months. If the risk increases significantly, loss allowances are recognized based on the expected credit loss for the duration of such other financial assets.

The expected credit loss refers to the weighted average credit loss computed by weighting the risk of a breach of contract. The expected credit loss for 12 months means the expected credit loss incurred due to violation of a financial instrument within 12 months after the date of reporting. The expected credit loss for the duration means the expected credit loss incurred due to all violations of a financial instrument for the duration of the financial instrument.

The impairment loss of all financial assets is reflected by reducing the book amount of the financial assets through the allowance account.

(3) Derecognition of Financial Assets
The Company derecognizes financial assets only when their rights to cash flows from financial assets under a contract expire or when financial assets have been transferred and almost all risks of ownership of the assets and payments of the assets have been transferred to other enterprises.
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Upon derecognition of the entire financial assets measured at amortized cost, the difference between the book amount of the financial assets and the received consideration is recognized in profits or losses.

Equity Instruments The equity instruments issued by the Company are classified as equity based on the substance of contractual agreements and the definition of equity instruments.

The equity instruments issued by the Company are recognized based on the obtained consideration less the cost of direct issuance.

The equity instruments of the Company taken back are recognized as and subtracted from equity. Their book value is calculated in a weighted average based on types of stocks. No purchase, sale, issuance or annulment of equity instruments of the Company shall be recognized in profits or losses.

Financial Liabilities
- (1) Subsequent Measurement
  - All financial liabilities of the Company are measured at amortized cost by use of the effective interest method.
- (2) Derecognition of Financial Liabilities
  - With respect to derecognition of financial liabilities, the difference between the book value and the consideration paid (including any transferred non-cash assets or assumed liabilities) is recognized as profit or loss.
(K) Revenue Recognition

After identifying its obligations under a contract made with a customer, the Company amortizes the transaction price to each obligation and recognizes revenue upon fulfillment of each obligation.

Sales Revenue

Sales revenue comes from sale of integrated circuits. When integrated circuits products are shipped, the customer has already had the right to determine the price and use the products and had the primary responsibility for resale, and shall take the risk of obsolescence of the products, so the Company recognizes revenue and accounts receivables at that point of time.

For the goods delivered to be processed, revenue is not recognized upon such delivery as the ownership of processed goods is not transferred.

(L)
Lease

Upon establishment of a contract, the Company evaluates whether the contract is (or includes) a lease.

The Company is a lessor. If almost all of the risks and compensation pertaining to the ownership of the assets are required to be transferred to the lessee in accordance with the terms of the lease, then the lease is classified as a financed lease. All other leases are classified as operating leases.
Lease payments less lease incentives are recognized as incomes under the operating lease for the lease period on a straight-line basis.
The Company is a lessee. For other leases, right-of-use assets and lease liabilities are recognized on the date of lease commencement, except for leases of low-value assets for
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which exemptions can be recognized and short-term leases, in which case, lease payments are recognize as expenses for the lease period on a straight-line basis.

Right-of-use assets are originally measured at cost (including the amount of originally measured lease liabilities). They are subsequently measured based on the cost less accumulated depreciation and accumulated impairment loss, and the remeasurement of lease liabilities is adjusted accordingly. Right-of-use assets are expressed separately in the parent-company-only balance sheet.

Right-of-use assets are depreciated on a straight-line basis between the date of lease commencement and the expiration of the service life or expiration of the lease period, whichever comes first.

Lease liabilities are originally measured based on the current value of lease payments. If a lease implies an interest rate that can be determined easily, then lease payments are discounted at the interest rate. If the interest rate cannot be determined easily, then the lessee’s incremental borrowing rate of interest is used.

After that, lease liabilities are measured at amortized cost by use of the effective interest method, and interest expenses are amortized for the leasing. If the lease period, the amount expected to be paid to the extent of the guaranteed residual value, the evaluation of call options for subject assets, or the index or rate determined for lease payments changes so that future lease payments are varied accordingly, the Company would remeasure lease liabilities and adjust right-of-use assets accordingly. However, when the book amount of right-of-use assets is already reduced to zero, the rest of the remeasurement amount is recognized in profits or losses. Lease liabilities are expressed separately in the parent-company-only balance sheet.

(M) Government Subsidy
A government subsidy is recognized only when the Company is reasonably believed to comply with the conditions fixed to the government subsidy and will receive the subsidy.

A government subsidy relevant to benefits is recognized as other income on a systemic basis for the year in which the Company recognizes as expenses the costs to be covered by the subsidy.

(N) Employee Benefits
Short-term Employee Benefits Liabilities relevant to short-term employee benefits are measured based on non-discounted amounts expected to be paid to exchange for employees’ service.
Post-employment Benefits As for retirement pensions under the defined contribution plan, the pension amounts allocated for the period during which employees provide service are recognized as expenses.
- Defined costs (including service costs, net interest and remeasurements) of the defined benefit plan are calculated by use of the projected unit credit method. Service costs (including service costs for the current year) and net interest on defined benefit liabilities (assets) are recognized as employee benefit expenses upon their occurrence. Remeasurements
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(including actuarial gains and losses, and return on plan asset less interest) are recognized in other comprehensive incomes or losses upon their occurrence and listed in retained earnings, and they will not be reclassified to profits or losses in a subsequent period.

Net defined benefit liabilities (assets) are allocated shortage (surplus) of the defined benefit plan. Net defined benefit assets shall not exceed the current value of the refund of contributions from the plan or the reduction in future contributions.

Other Long-term Employee Benefits
- The accounting treatment of other long-term employee benefits is the same as that of the defined benefit plan. However, relevant remeasurements are recognized in profits or losses.
(O) Share-based Payment Arrangement Employee stock options and employee restricted stock award shares granted by the Company to employees are recognized as expenses on a straight-line basis for the vesting period based on the fair value of equity instruments on －
the grant date and the expected best estimate, and the “capital reserve employee stock options and other equity (unearned compensation)” is also adjusted simultaneously. If they are obtained immediately on the grant date, they are recognized as expenses on the grant date.
When the Company issues restricted stock award shares, other equity (employees’ unearned compensation) is recognized on the grant date, and －
the ”capital reserve employee restricted stock award shares” is adjusted simultaneously. If such shares are issued for value and the amount of shares is agreed to be returned upon resignation of the employee, then relevant payables shall be recognized. If the employee who resigns within the vesting period is not required to return the dividends received already, then expenses are recognized upon announcement of the dividends to be distributed, and －
retain earnings and ”capital reserve employee restricted stock award shares” are adjusted simultaneously.
The Company amends the estimate of the obtained employee stock options and employee restricted stock award shares on each balance sheet date. If an originally estimated amount is amended, its effects are recognized as profits or losses so that the accumulated expenses reflect the amended estimate. The －－
“capital reserve employee stock option” and “capital reserve employee restricted stock award shares” are also adjusted accordingly.
(P) Income Tax

The tax expense is the sum of current income tax and deferred income tax.

Current Income Tax The Company determines its incomes (losses) for the current year in accordance with the regulations enacted by the Republic of China, and calculates income tax payable (refundable) based on such incomes (losses).
The income tax on undistributed earnings computed in accordance with the Income Tax Act of the Republic of China is recognized for the year when the resolution is adopted at the shareholders’ meeting. Adjustment made for the previous year’s income tax payable is listed in current income tax.
Deferred Income Tax
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Deferred income tax is computed based on temporary differences generated from the book amounts of assets and liabilities and the tax base used to compute taxable income.

Deferred income tax liabilities are generally recognized based on taxable temporary differences. Deferred income tax assets are recognized when there may probably be taxable incomes from which the tax credits generated from temporary differences and loss carryforwards can be subtracted.

Taxable temporary differences relevant to investments in subsidiaries are recognized as deferred income tax liabilities, except when the Company is able to control the point of reverse of temporary differences and the taxable temporary differences will not be reversed in the foreseeable future. Deductible temporary differences relevant to the investments are recognized as deferred income tax assets only to the extent of the foreseeable reverse expected in the future when there is taxable income sufficient to realize temporary differences.

The book amount of deferred income tax assets is reviewed again on every balance sheet date. For all or part of assets that taxable income may probably not be sufficient to recover, the book amount is reduced accordingly. Those that are not originally recognized as deferred income tax assets are also reviewed again on every balance sheet date. The book amount is increased when there may be any taxable income used to recover all or part of the assets.

Deferred income tax assets and liabilities are measured at the tax rate applicable to the year when liabilities are expected to be repaid or assets are expected to be realized. The interest rate refers to the interest rate determined by the tax law that is enacted or substantially enacted as of the balance sheet date. Deferred income tax liabilities and assets are measured to reflect the tax consequences generated in the way that the Company expects to recover or repay the book amount of its assets or liabilities as of the balance sheet date.

Current and Deferred Income Taxes
- Current and deferred income taxes are recognized in profits or losses. However, the current and deferred income taxes relevant to the items recognized in other comprehensive incomes or losses or those included directly in equity are recognized in other comprehensive incomes or losses or included directly in equity respectively.
V. Main Sources of Material Accounting Judgments, Estimates and

Assumption Uncertainty

For relevant information not accessible by the Company from other resources in applying accounting policies, the management must make relevant judgments, estimates and assumptions based on historical experience and other relevant factors. The actual result may probably differ from the estimate.

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Main Sources of Estimates and Assumption Uncertainty

(A) Impairment of Financial Asset Estimates
Accounts receivable and liability instruments are estimated based on the assumptions of probability of default and loss-given default made by the Company. The Company considers historical experience, current market conditions and forward-looking information to make its assumptions and chooses input values for the impairment of estimates. If the actual cash flows in the future are less than those expected by the Company, a material impairment loss may occur.
(B) Impairment of Inventories
The net realizable value of inventories is an estimate of the difference obtained after the cost estimate to be spent until completion of the production and the cost estimate to be required for completion of the sale are subtracted from the selling price estimate. These estimates are evaluated based on current market conditions and historical sales of similar products. Changes in market conditions may affect these estimated results materially.

VI. Cash and Cash Equivalents

Cash and Cash Equivalents
Foreign currency deposits Checks and saving deposits with the bank Petty cash and cash on hand Cash equivalents Time deposits	Dec. 31,2023 $ 63,088 32,998 434 342,700 $439,220	Dec. 31,2022
			$ 58,549 38,032 519 126,200 $223,300

VII.	The interest rate range of cash and cash equivalents as of the as follows: Dec. 31,2023 Bank deposits 0.1%~4.05% Accounts Receivable Dec. 31,2023 Accounts receivable－ Non-related parties Measured at amortized cost Total book amount $108,662 Accounts receivable－Related parties Measured at amortized cost Total book amount 40,266 $148,928	balance sheet date is Dec. 31,2022 0.1%~1.41% Dec. 31,2022 $103,592 29,074 $132,666

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As for the payments of products sold by the Company, the average credit period is between 30 and 45 days after the date of monthly settlement. No interest accrues for accounts receivable. The Company will rate main customers by using other publicly available financial information and historical transaction records. The Company continues monitoring credit risk exposure, and the credit rating of the counterparty to each transaction. To reduce credit risk, the management of the Company designates a team to take charge of the decision of credit line, credit approval and other monitoring procedures to ensure that proper measures are taken to recover overdue receivables. In addition, the Company also reviews recoverable amounts of receivables on a case-by-case basis on the balance sheet date to ensure that a proper amount of impairment loss is allocated for unrecoverable receivables. Accordingly, the management of the Company believes that the Company’s credit risk has been reduced significantly.

The Company recognizes, based on expected credit loss for the duration, the allowance for losses on accounts receivable. The expected credit loss for the duration is calculated by use of the provision matrix, which considers the historical default records of customers, current financial conditions, state of industrial economy, and industrial development prospects. As shown in the history of credit loss incurred by the Company, there is no significant difference between loss types in terms of different customer bases. Thus the provision matrix is not used to distinguish customer bases, and the expected credit loss rates are determined based on the number of days that the accounts receivable are past due.

If evidence shows that the counterparty encounters serious financial difficulties and the Company is unable to reasonably expect a recoverable amount, then the Company will write off relevant accounts receivable directly; however, claiming activities will still continue. Amounts claimed and recovered are recognized in profits.

Please refer to the following table for the analysis on aging of accounts receivable as of the end of the reporting period.

as of the end of the reporting period.
Analysis on Aging of Accounts Receivable Dec. 31,2023 Not overdue, and not impaired $108,662	Dec. 31,2022
Not overdue, and not impaired
		$103,592

VIII. Inventories

Inventories
Finished goods Work in process Raw materials and supplies	Dec. 31,2023 $ 86,618 300,174 155,187 $541,979	Dec. 31,2022
			$118,812 405,733 226,335 $750,880

Cost of goods sold relevant to inventories was NTD 677,439 thousand and NTD 949,915 thousand respectively in 2023 and 2022.

Cost of goods sold included an inventory valuation loss NTD 14,560 thousand and an obsolescence loss NTD 13,794 thousand respectively in 2023 and 2022.

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IX. Subsidiaries

Subsidiaries
Investee subsidiaries Investee Subsidiaries Leadtrend (Shenzhen) Co., Ltd. Leadtrend Technology (Samoa) Limited Name of subsidiary Leadtrend (Shenzhen) Co., Ltd. Leadtrend Technology (Samoa) Limited	Dec. 31,2023 Dec. 31,2022 $ 235,499 $ 207,124 Dec. 31,2023 Dec. 31,2022 $235,499 $203,713 - 3,411 $235,499 $207,124 Percentage of ownership interest and votingrights	Dec. 31,2022
		$ 207,124 Dec. 31,2022
	Dec. 31,2023 100% -	Dec. 31,2022
		100% 100%

Leadtrend Technology (Samoa) Limited was liquidated and had registration nullified in November 2023, and returned the invested amount to the Company. Share of the current profit or loss and other comprehensive incomes of subsidiaries accounted for using the equity method for 2023 and 2022 was recognized based on the financial statements of each subsidiary audited by CPAs for the same periods.

X. Property, Plant and Equipment

Self-used

Cost Balance at Jan. 1, 2023 Increase Decrease Balance at Dec. 31, 2023 Accumulated depreciation Balance at Jan. 1, 2023 Increase Decrease Balance at Dec. 31, 2023 Net at Dec. 31, 2023 Cost Balance at Jan. 1, 2022 Increase Decrease Balance at Dec. 31, 2022 Accumulated depreciation Balance at Jan. 1, 2022 Increase Decrease Balance at Dec. 31, 2022 Net at Dec. 31, 2022		Land		House and building		R&D equipment		Office equipment		Molding equipment	Lease improvement	Lease improvement		Photomask		Total
	(	$ 86,200 - 2,101) $ 84,099 $ - $ - $ 84,099 $ 72,270 13,930 - $ 86,200 $ - - - $ - $ 86,200	( (	$ 304,083 1,055 7,055) $ 298,083 $ 50,764 9,199 983) $ 58,980 $ 239,103 $ 258,236 45,847 - $ 304,083 $ 42,107 8,657 - $ 50,764 $ 253,319	( ( ( (	$ 271,094 7,511 296) $ 278,309 $ 180,764 23,892 296) $ 204,360 $ 73,949 $ 244,564 27,058 528) $ 271,094 $ 155,230 26,062 528) $ 180,764 $ 90,330	( ( ( (	$ 31,544 771 217) $ 32,098 $ 24,358 3,168 203) $ 27,323 $ 4,775 $ 29,627 2,620 703) $ 31,544 $ 21,930 3,131 703) $ 24,358 $ 7,186		$ 26,082 581 - $ 26,663 $ 24,610 839 - $ 25,449 $ 1,214 $ 25,356 726 - $ 26,082 $ 23,950 660 - $ 24,610 $ 1,472	( (	$ 22,475 121 1,512) $ 21,084 $ 16,549 1,306 1,146) $ 16,709 $ 4,375 $ 17,523 4,952 - $ 22,475 $ 12,873 3,676 - $ 16,549 $ 5,926	( (	$ 275,274 20,063 49,480) $ 245,857 $ 239,033 31,907 49,481) $ 221,459 $ 24,398 $ 242,950 32,324 - $ 275,274 $ 209,029 30,004 - $ 239,033 $ 36,241	( ( ( (	$ 1,016,752 30,102 60,661) $ 986,193 $ 536,078 70,311 52,109) $ 554,280 $ 431,913 $ 890,526 127,457 1,231) $ 1,016,752 $ 465,119 72,190 1,231) $ 536,078 $ 480,674

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No impairment loss was recognized or reversed in 2023 and 2022.

Depreciation expenses are allocated on a straight-line basis based on the following service lives:

House and building 10 ~ 50 years R&D equipment 3 ~ 8 years Office equipment 4 ~ 9 years Molding equipment 3 years Lease improvement 2 ~ 6 years Photomask 2 ~ 3 years

XI. Lease Agreement

(A) Right-of-use Assets

Right-of-use Assets
Dec. 31,2023 Dec. 31,2022 Book amount of right-of-use assets Building $ 12,165 $ 14,897 2023 2022 Added Right-of-use assets $ 6,156 $ - Depreciation expenses for right-of-use assets Building $ 8,888 $ 9,014 Lease Liabilities Dec. 31,2023 Dec. 31,2022 Book amount of lease liabilities Current $ 8,430 $ 7,878 Non-current $ 4,232 $ 7,189 The range of discount rates for lease liabilities is as follows: Dec. 31,2023 Dec. 31,2022 Building 1.96%~2.10% 1.96%~2.10%	Dec. 31,2022
		$ 14,897 2022
	$ - $ 9,014 Dec. 31,2022
	1.96%~2.10%

(B) Lease Liabilities

The Company as a lessee has leased some buildings to be used as office space, and the lease periods are from 2 to 5 years. The Company does not have the right of first refusal for the buildings leased by the Company upon expiration of a lease period. It has been agreed that the Company shall not relet or assign the whole or part of the leased buildings to third parties without the consent of a lessor.

(D) Other Lease Information

of a lessor. Other Lease Information
Short-term lease expenses Low-value asset lease expenses Total cash provided by (used in) leases		2023 $ 1,103 $ 54 $ 10,055)		2022
	(		(	$ 1,982 $ 53 $ 11,327)

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The Company chooses to recognize exemptions applicable to the office equipment that is in line with short-term leases and the office equipment rental that is in line with low-value asset leases, and does not recognize right-of-use assets or lease liabilities relevant to such leases.

XII. Intangible Assets

Intangible Assets
Cost Balance at Jan. 1, 2023 Increase Balance at Dec. 31, 2023 Accumulated amortization Balance at Jan. 1, 2023 Increase Balance at Dec. 31, 2023 Net at Dec. 31, 2023 Cost Balance at Jan. 1, 2022 Increase Balance at Dec. 31, 2022 Accumulated amortization Balance at Jan. 1, 2022 Increase Balance at Dec. 31, 2022 Net at Dec. 31, 2022		Computer software $ 100,064 2,357 $ 102,421 $ 92,181 3,684 $ 95,865 $ 6,556 $ 92,524 7,540 $ 100,064 $ 90,351 1,830 $ 92,181 $ 7,883	Know-how $ 27,972 5,462 $ 33,434 $ 26,984 5,995 $ 32,979 $ 455 $ 17,993 9,979 $ 27,972 $ 16,459 10,525 $ 26,984 $ 988	Patent right $ 8,383 - $ 8,383 $ 3,425 837 $ 4,262 $ 4,121 $ 8,383 - $ 8,383 $ 2,586 839 $ 3,425 $ 4,958		Others $ 2,922 - $ 2,922 $ 2,922 - $ 2,922 $ - $ 2,922 - $ 2,922 $ 2,922 - $ 2,922 $ -		Total
								$ 139,341 7,819 $ 147,160 $ 125,512 10,516 $ 136,028 $ 11,132 $ 121,822 17,519 $ 139,341 $ 112,318 13,194 $ 125,512 $ 13,829

Amortization expenses are allocated for the aforementioned intangible assets on a straight-line basis based on the following service lives:

Computer software 3 ~ 6 years Know-how 5 years Patent right 10 years Others 3 ~ 5 years

XIII. Other Assets

Other Assets
Current Prepayment for purchases Temporary payments Income tax refund receivable Tax overpaid retained for offsetting the future tax payable Refundable deposits Others	Dec. 31,2023 $ 4,396 993 813 1 - 8,157 $ 14,360	Dec. 31,2022
			$ 4,107 905 2,709 4,726 15,000 6,624 $ 34,071

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Dec. 31, 2023 Dec. 31, 2022

Non-current Prepayments for business facilities Refundable deposits	$ 2,781 2,491 $ 5,272	$ 5,070 2,718 $ 7,788

XIV. Other Current Liabilities

Other Current Liabilities
Bonuses payable Unused leave payments Insurance premium payable Professional service fees payable Others	Dec. 31,2023 $ 32,305 5,273 3,853 3,296 16,185 $ 60,912	Dec. 31,2022
			$ 39,336 9,050 4,197 3,473 25,454 $ 81,510

XV. Post-employment Benefit Plan

(A) Defined Contribution Plan
The retirement pension system provided in the Labor Pension Act, which is applicable to the Company, refers to the defined contribution plan managed by the government. The 6% of the monthly wages of an employee is allocated to the specific account of the individual with Bureau of Labor Insurance.
(B) Defined Benefit Plan The retirement pension system adopted by the Company in accordance with the Labor Standards Act of the Republic of China is the defined benefit plan managed by the government. The retirement pension to an employee is computed based on the employee’s service time and average wage of the 6 months immediately before the date of retirement approval. The Company allocates the 2% of the monthly wages of an employee to the employee’s retirement funds and transfers it to Supervisory Committee of Business Entities’ Labor Retirement Reserve. Then the committee deposits it to the specific account with Bank of Taiwan in the name of the committee. If the balance of the specific account at the end of a fiscal year is estimated not to be enough to be paid to the employees who will meet the requirements of retirement in the next year, the difference will be allocated in full by the end of March in the next year. The specific account is entrusted to Bureau of Labor Funds, Ministry of Labor to manage. The Company has no right to influence investment and management strategies.

The Company reached an agreement with employees in Aug. 2023 to settle the years of service accumulated in the old system and settle pension amounts in accordance with relevant regulations. Such settlement was approved by the competent authority. The Company was under no obligation to pay either the balance recovered from the specific pension accounts or the book amount of net defined benefit liability. The balance and the book amount were transferred to income. Such income, totaling NTD 15,045 thousand, was listed as other income. Please refer to Note 19 (B) Other Income.

29 -

Amounts for the defined benefit plan in the parent-company-only balance sheet are listed as follows:

sheet are listed as follows:
Present value of a defined benefit obligation Fair value of plan assets Net defined benefit liabilities	Dec. 31,2022
	(	$ 24,101 19,261) $ 4,840

Changes in net defined benefit	Changes in net defined benefit	liabilities (assets) are as follows:	liabilities (assets) are as follows:	liabilities (assets) are as follows:	liabilities (assets) are as follows:	liabilities (assets) are as follows:
	Present value					Net defined
	of	a defined					benefit
		benefit	Fair		value of	liabilities
	obligation			plan assets			(assets)
Jan. 1, 2022	$	24,933	(	$	15,239)	$	9,694
Service cost
Current service cost	$	480		$	-	$	480
Interest expense
(income)		125	(		85)		40
Recognized in profit
(loss)		605	(		85)		520
Remeasurements
Return on plan assets
(except the amount
included in net
interest)		-	(		1,115 )	(	1,115 )
Actuarial gains－
Changes in financial
assumptions	(	1,970 )			-	(	1,970 )
Actuarial losses－
Experience
adjustments		533			-		533
Recognized in other
comprehensive incomes
(losses)	(	1,437)	(		1,115)	(	2,552)
Employer contributions		-	(		2,822)	(	2,822)
Dec. 31, 2022	$	24,101	(	$	19,261)	$	4,840

The Company is exposed to the following risks with respect to the retirement pension system provided by the Labor Standards Act.

Investment Risk: Bureau of Labor Funds, Ministry of Labor invests the labor pension fund by itself or though an agent in domestic (foreign) domestic equity securities and debt securities, bank deposits and other subject matters. However, the distributable amount of the Company’s plan assets is the income calculated at an interest rate not inferior to that announced by the local bank for 2-year time deposits.
Interest Rate Risk: Reduction of interest rates for government bonds/corporate bonds will result in an increase in the present value of defined benefit obligations. However, the return on debt investments
30 -

with respect to plan assets will increase accordingly. Both offset the impact on the net defined benefit liabilities partially.

Wage Risk: The present value of defined benefit obligations is calculated by taking future wages of plan members into account. Thus the increase in wages of plan members will result in an increase in the present value of defined benefit obligations.

The present value of defined benefit obligations of the Company is calculated by a qualified actuary. Material assumptions on the measurement date are as follows:

follows:
Discount rate Expected rate of wage increments	Dec. 31,2022
	1.375% 4.000%

In case of a reasonable and possible change in any material actuarial assumption, the increase (decrease) in the present value of defined benefit obligations on the premise that other assumptions remain unchanged is as follows:

follows:
Discount rate Increased by 0.25% Decreased by 0.25% Expected rate of wage increments Increased by 0.25% Decreased by 0.25%	Dec. 31,2022
	( (	$ 527) $ 543 $ 519 $ 507)

The aforementioned sensitivity analysis may probably not reflect actual changes in the present value of defined benefit obligations as actuarial assumptions may correlate mutually and changes in only one assumption are not quite possible.

not quite possible.
Amount expected to be contributed in one year Average expiration period of defined benefit obligations	Dec. 31,2022
		$ 1,086 9 years

XVI. Equity

(A)	Stock Capital Common Shares Authorized number of shares (In thousand shares) Authorized stock capital Number of issued and paid-in shares (In thousand shares) Issued stock capital	Dec. 31,2023 200,000 $ 2,000,000 58,918 $ 589,178	Dec. 31,2022	Dec. 31,2022
				200,000 $ 2,000,000 56,883 $ 568,838

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Common shares are issued with par value NTD 10. A shareholder is entitled to one vote for each share the shareholder holds, and has the right to receive dividends.

The stock capital in authorized stock capital reserved for issuance of employee stock options was 7,800 thousand shares.

(B) Capital Reserve

Capital Reserve
Used to make good of loss, distribute cash or appropriate to be stock capital (1) Additional paid-in capital in excess of par (including exercised or invalid employee stock options) Donated assets received from shareholder (2) Used to make good of losses only Others Not used for any purpose Employee restricted stock award shares	Dec. 31,2023 $ 254,672 84,732 125 50,306 $ 389,835	Dec. 31,2022
			$ 258,027 84,732 106 47,567 $ 390,432

Such capital reserve may be used to make good of loss, and may also be used to distribute cash or expand stock capital when the Company does not have a loss; however, the amount used to expend stock capital is limited to a certain percentage of the paid-in capital.
It was cash given as a gift by Delaware Asia Pacific Investment Corp.

According to the earning distribution policy provided by the Company’s articles of incorporation, net profits after tax at the final settlement of each fiscal year, if any, shall be allocated, in the following order, for:
Making good of accumulated loss (including adjustment of the amount of undistributed earnings);
Setting aside 10% as legal reserve; however, no legal reserve shall be allocated if the total legal reserve has reached the amount of the paid-in capital of the Company;
Allocating or reversing special reserve in accordance with statutes or as required by the competent authority.
The rest of profits together with the undistributed earnings at the beginning of the year (including the adjusted amount of undistributed earnings), for which the board of directors shall prepare a proposal of earning distribution, to be distributed by means of issuance of new shares, are distributed after being resolved at the shareholders’ meeting.
In case that the Company distributes the whole or part of dividends and bonuses or legal reserve and capital reserve in cash, the distribution shall be adopted only when more than two-thirds of directors are present at the board meeting and more than a half of the directors present approve, and shall be reported at the shareholders’ meeting.
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For the policy of the allocation of remunerations to employees and directors as stated in the Company’s articles of incorporation, refer to Note 19(G) Remunerations to Employees and Directors.

Dividends are distributed by the Company based on the status of earnings for the current year, including distributable earnings, capital reserve and other sources distributable in accordance with laws. The percentage of total distributions shall not be less than 30% of the profit after tax for the current year. Cash dividends distributed every year shall not be less than 10% of the total of the cash dividends and stock dividends distributed for the current year.

Legal reserve shall be allocated until the balance thereof reaches the total paid-in capital of the Company. Legal reserve may be used to make good of loss. When the Company has no loss, the portion of legal reserve in excess of 25% of paid-in capital can be used to expand stock capital or be distributed in cash.

The Company’s earning distributions for 2022 and 2021 are as follows:

Allocated legal reserve Cash dividends Stock dividends Cash dividends per share (NTD) Stock dividends per share (NTD)		2022 $ 15,491 $ 31,286 $ 17,065 $ 0.550 $ 0.300		2021
				$ 32,806 $ 147,868 $ 36,967 $ 2.8000 $ 0.700

The board of directors of the Company resolved on May 2, 2023 that the capital reserve of 2022 should be used to distribute cash dividends NTD 19,909 thousand (NTD 0.350 per share). In addition to cash dividends, other earning distribution items were already resolved at the general meeting of shareholders held on June 13, 2023.

Besides, the board of directors of the Company resolved on Apr. 29, 2022 that the capital reserve of 2021 should be used to distribute cash dividends NTD 26,405 thousand (NTD 0.500 per share). In addition to cash dividends, other earning distribution items were already resolved at the general meeting of shareholders held on June 9, 2022.

(D)

Other Equity

Exchange Differences on Translation of Financial Statements of Foreign Operations:

Operations:
			2023	2022
Beginning balance		$	5,602	$ 1,867
Generated in the current year
Differences on translating
foreign operations	(		5,249 )	3,735
Reclassification adjustment
Disposal of the share of
subsidiaries accounted for
using the equity method	(		1,139)	-
Other comprehensive incomes
(losses) for the current year	(		6,388)	3,735
Ending balance	(	$	786)	$ 5,602

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Exchange differences arising on translating the net assets of foreign operations in the functional currency to those in the presentation currency used by the Company (i.e. NTD) are recognized directly as “exchange differences on translation of financial statements of foreign operations” under other comprehensive incomes. The previously accumulated exchange differences on translation of financial statements of foreign operations are reclassified as profits or losses upon disposal of the foreign operations.

Employees’ Unearned Compensation
Issuance of restricted stock award shares was resolved at the shareholders’ meeting of the Company held on June 13, 2023, June 9, 2022 and June 23, 2020 respectively. For relevant explanation, please refer to Note 17.

to Note 17.
Beginning balance Granted in the year Recognized share-based payment expenses Revoked and cancelled in the year Ending balance	2023 ( $ 31,945 ) ( 27,930 ) 18,710 5,362 ($ 35,803)	2022
		( $ 42,573 ) ( 19,782 ) 21,013 9,397 ($ 31,945)

XVII. Share-based Payment

Employee Restricted Stock Award Share

Information relevant to the employee restricted stock award shares issued by the Company is as follows:

Date of approval by the shareholders’ meeting 2020.06.23 2020.06.23 2022.06.09 2023.06.13	Number of shares expected to be issued (In thousand shares) 1,200 1,200 420 420	Number of shares resolved by the board of directors (In thousand shares) 900 300 420 420	Grant date 2020.09.11 2021.08.03 2022.10.07 2023.10.06	Base date for capital increase 2020.11.06 2021.08.03 2022.10.12 2023.10.11	Number of actually issued shares (In thousand shares) 900 300 420 420	Fair value on the grant date
						34.35 122 47.1 66.5

Issuance of restricted stock award shares in a total amount of NTD 12,000 thousand was resolved at the shareholders’ meeting of the Company on June 23, 2020. A total of 1,200 thousand shares were issued. Issuance regulations are summarized as follows:

Employees to whom restricted stock award shares have been allocated shall satisfy the Personal Performance requirement by obtaining the result of “Satisfactory” or above in the latest personal performance assessment prior to the vesting date. If the employees still work at the Company upon expiration of any of the following vesting periods, they will receive award shares at the granting ratio as scheduled below:

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Vesting period From the grant date to Oct. 15 of the 1st year following the grant date From the grant date to Apr. 15 of the 2nd year following the grant date From the grant date to Oct. 15 of the 2nd year following the grant date From the grant date to Apr. 15 of the 3rd year following the grant date From the grant date to Oct. 15 of the 3rd year following the grant date From the grant date to Apr. 15 of the 4th year following the grant date	Grantingratio
	1/6 1/6 1/6 1/6 1/6 1/6

Vesting period
From the grant date to Oct. 15 of the 1st
year following the grant date
From the grant date to Apr. 15 of the
2nd year following the grant date
From the grant date to Oct. 15 of the
2nd year following the grant date
From the grant date to Apr. 15 of the
3rd year following the grant date
From the grant date to Oct. 15 of the
3rd year following the grant date
From the grant date to Apr. 15 of the
4th year following the grant date

Grantingratio

1/6
1/6
1/6
1/6
1/6
1/6

Measures Taken for Employee Failing to Satisfy the Vesting Conditions:

(A) If the employees resigns, are dismissed or laid off, retire, die, take leave without pay or are transferred to any affiliated enterprise after the grant date and prior to the expiration of the vesting period, the Company will take back, without payment, the award shares that have been granted to the employees (for the current year) and have not vested in the employees.
(B) If the employees fail to meet the required personal performance immediately prior to the vesting date, the Company will take back, without payment, the award shares that have not vested in the employees that time.
(C) The Company will give to the employees, without payment, the dividends allocated based on the award shares prior to the expiration of the vesting period.
(D) If the employees terminate or cancel, before their satisfaction of the vesting conditions, the authorization given to the Company in violation of the rule saying that the trust contract or other similar agreements shall be negotiated, signed, revised, extended, cancelled or terminated, and the trust property shall be delivered, used and disposed, by the Company on behalf of the employees and the stock trust agency in the period for which restricted stock award shares are trusted, the Company shall take back, without payment, the award shares from the employees.

The restricted stock award shares taken back by the Company without payment will be revoked by the Company.

Shares granted under the aforementioned stock option plan are summarized as follows:

follows:
2023 Outstanding at the beginning of the year Vested for the current year Recovered for the year Outstanding at the end of the year Granted weighted average fair value	Employee restricted stock award shares for 2020-1 Unit(Thousand) 424.5 ( 266.5 ) ( 26.0) 132.0 $ 34.35	Employee restricted stock award shares for 2020-2
		Unit(Thousand)
		192.5 ( 69.5 ) ( 18.0) 105.0 $ 122

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2022 Outstanding at the beginning of the year Vested for the current year Recovered for the year Outstanding at the end of the year Granted weighted average fair value	Employee restricted stock award shares for 2020-1 Unit(Thousand) 740.0 ( 287.0 ) ( 28.5) 424.5 $ 34.35	Employee restricted stock award shares for 2020-2
		Unit(Thousand)
		291.0 ( 38.5 ) ( 60.0) 192.5 $ 122

Issuance of restricted stock award shares in a total amount of NTD 4,200 thousand was resolved at the shareholders’ meeting of the Company on June 9, 2022. A total of 420 thousand shares were issued. Issuance regulations are summarized as follows:

Employees to whom restricted stock award shares have been allocated shall satisfy the Personal Performance requirement by obtaining the result of “Satisfactory” (i.e. a performance assessment scale score ≧ 5.8) or above in the latest personal performance assessment prior to the vesting date. If the employees still work at the Company upon expiration of any of the following vesting periods, they will receive award shares at the granting ratio as scheduled below:

below:
Vesting period From the grant date to Oct. 11 of the 1st year following the grant date From the grant date to Apr. 11 of the 2nd year following the grant date From the grant date to Oct. 11 of the 2nd year following the grant date From the grant date to Apr. 11 of the 3rd year following the grant date From the grant date to Oct. 11 of the 3rd year following the grant date From the grant date to Apr. 11 of the 4th year following the grant date	Grantingratio
	1/6 1/6 1/6 1/6 1/6 1/6

below:

Vesting period
From the grant date to Oct. 11 of the
1st year following the grant date
From the grant date to Apr. 11 of the
2nd year following the grant date
From the grant date to Oct. 11 of the
2nd year following the grant date
From the grant date to Apr. 11 of the
3rd year following the grant date
From the grant date to Oct. 11 of the
3rd year following the grant date
From the grant date to Apr. 11 of the
4th year following the grant date

Grantingratio

1/6
1/6
1/6
1/6
1/6
1/6

Measures Taken for Employees Failing to Satisfy the Vesting Conditions:

(A) If the employees resigns, are dismissed or laid off, retire, die, take leave without pay or are transferred to any affiliated enterprise after the grant date and prior to the expiration of the vesting period, the Company will take back, without payment, the award shares that have been granted to the employees (for the current year) and have not vested in the employees.
(B) If the employees fail to meet the required personal performance immediately prior to the vesting date, the Company will take back, without payment, the award shares that have not vested in the employees that time.
(C) The employees are not entitled to any stocks, cash dividends or capital reserve allocated before the expiration of the vesting period.
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(D) If the employees terminate or cancel, before their satisfaction of the vesting conditions, the authorization given to the Company in violation of the rule saying that the trust contract or other similar agreements shall be negotiated, signed, revised, extended, cancelled or terminated, and the trust property shall be delivered, used and disposed, by the Company on behalf of the employees and the stock trust agency in the period for which restricted stock award shares are trusted, the Company shall take back, without payment, the award shares from the employees.

The restricted stock award shares taken back by the Company without payment will be revoked by the Company.

Shares granted under the aforementioned stock option plan are summarized as follows:

follows:
2023 Outstanding at the beginning of the year Granted for the current year Recovered for the year Outstanding at the end of the year Granted weighted average fair value (NTD) 2022 Outstanding at the beginning of the year Granted for the current year Outstanding at the end of the year Granted weighted average fair value (NTD)	Employee restricted stock award shares for 2022
	Unit(Thousand)
	( (	420.0 61.5 ) 66.0) 292.5

		$ 47.1
		- 420.0
		420.0
		$ 47.1

Issuance of restricted stock award shares in a total amount of NTD 4,200 thousand was resolved at the shareholders’ meeting of the Company on June 13, 2023. A total of 420 thousand shares were issued. Issuance regulations are summarized as follows:

below:
Vesting period From the grant date to Oct. 11 of the 1st year following the grant date From the grant date to Apr. 11 of the 2nd year following the grant date From the grant date to Oct. 11 of the 2nd year following the grant date From the grant date to Apr. 11 of the 3rd year following the grant date	Grantingratio
	1/6 1/6 1/6 1/6

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Vesting period From the grant date to Oct. 11 of the 3rd year following the grant date From the grant date to Apr. 11 of the 4th year following the grant date	Grantingratio
	1/6 1/6

Measures Taken for Employees Failing to Satisfy the Vesting Conditions:

(A) If the employees resigns, are dismissed or laid off, retire, die, take leave without pay or are transferred to any affiliated enterprise after the grant date and prior to the expiration of the vesting period, the Company will take back, without payment, the award shares that have been granted to the employees (for the current year) and have not vested in the employees.
(B) If the employees fail to meet the required personal performance immediately prior to the vesting date, the Company will take back, without payment, the award shares that have not vested in the employees that time.
(C) The employees are not entitled to any stocks, cash dividends or capital reserve allocated before the expiration of the vesting period.
(D) If the employees terminate or cancel, before their satisfaction of the vesting conditions, the authorization given to the Company in violation of the rule saying that the trust contract or other similar agreements shall be negotiated, signed, revised, extended, cancelled or terminated, and the trust property shall be delivered, used and disposed, by the Company on behalf of the employees and the stock trust agency in the period for which restricted stock award shares are trusted, the Company shall take back, without payment, the award shares from the employees.

The restricted stock award shares taken back by the Company without payment will be revoked by the Company.

Shares granted under the aforementioned stock option plan are summarized as follows:

follows:
2023 Outstanding at the beginning of the year Granted for the current year Outstanding at the end of the year Granted weighted average fair value (NTD)	Employee restricted stock award shares for 2023
	Unit(Thousand)
		- 420.0
		420.0
		$ 66.5

Due to resignation of employees, 100 thousand and 98.5 thousand restricted stock award shares were recovered in 2023 and 2022 respectively, and there were 17.5 thousand and 10 thousand shares among such recovered shares to be revoked.

The compensation cost recognized for restricted stock award shares in 2023 and 2022 was NTD 18,710 thousand and NTD 21,013 thousand respectively.

XVIII. Operating Revenue

Operating Revenue
Revenue from contracts with customers Integrated circuits		2023 $ 1,027,136		2022
				$ 1,555,862

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(A) (B) XIX. (A) (B) (C)	Contract Balance Dec. 31,2023 Dec. 31,2022 Accounts receivable (including those from related parties) (Note 7)$ 148,928 $ 132,666 Itemized Revenue from Contracts with Customers Itemized by Areas 2023 Taiwan (where the Company is located) $ 598,364 Mainland China 419,849 Korea 2,187 Other countries 6,736 $ 1,027,136 Net Profit of Operations Interest Income 2023 Bank deposits $ 3,883 Deposit interest 36 Commercial paper 25 Put-table bonds - Others 129 $ 4,073 Other Incomes 2023 Lease income Other operating leases $ 2,188 Government subsidy income - Others (Note) 16,189 $ 18,377 Note: Mainly consisting of pension payment income Other Gains and Losses 2023 Gains on disposal of property, plant and equipment $ 1,843 Gains on disposal of subsidiaries 1,139 Net gain (loss) on foreign exchange ( 199 ) Others - $ 2,783	Contract Balance Dec. 31,2023 Dec. 31,2022 Accounts receivable (including those from related parties) (Note 7)$ 148,928 $ 132,666 Itemized Revenue from Contracts with Customers Itemized by Areas 2023 Taiwan (where the Company is located) $ 598,364 Mainland China 419,849 Korea 2,187 Other countries 6,736 $ 1,027,136 Net Profit of Operations Interest Income 2023 Bank deposits $ 3,883 Deposit interest 36 Commercial paper 25 Put-table bonds - Others 129 $ 4,073 Other Incomes 2023 Lease income Other operating leases $ 2,188 Government subsidy income - Others (Note) 16,189 $ 18,377 Note: Mainly consisting of pension payment income Other Gains and Losses 2023 Gains on disposal of property, plant and equipment $ 1,843 Gains on disposal of subsidiaries 1,139 Net gain (loss) on foreign exchange ( 199 ) Others - $ 2,783			Jan. 1,2022
					$ 317,439 2022
				$ 850,257 685,069 5,201 15,335 $ 1,555,862 2022

					$ 3,187 22 44 101 - $ 3,354 2022
					$ 2,182 9,327 1,482 $ 12,991 2022
				(	$ - - 16,550 59) $ 16,491

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(D) Financial Cost

(D) Financial Cost
Interest on lease liabilities Other interest expenses (E) Depreciation and Amortization Depreciation expenses by functions: Operating cost Operating expenses Amortization expenses by functions: Operating cost Operating expenses (F) Employee Benefit Expenses Post-employment benefits Defined contribution plan Defined benefit plan (Note 15) Share-based payment (Note 17) Equity settlement Other employee benefits Total employee benefit expenses By functions: Operating cost Operating expenses	2023 $ 337 1 $ 338 2023 $ 18,501 60,698 $ 79,199 $ 1,177 9,339 $ 10,516 2023 $ 10,922 216 11,138 18,710 257,948 $ 287,796 $ 44,750 243,046 $ 287,796	2022
		$ 433 - $ 433 2022
		$ 26,140 55,064 $ 81,204 $ 707 12,487 $ 13,194 2022
		$ 11,123 520 11,643 21,013 315,186 $ 347,842 $ 58,201 289,641 $ 347,842

(G) Remunerations to Employees and Directors

The Company allocated employees’ remuneration and directors’ remuneration, from its profit computed before deduction of employees’ remuneration and directors’ remuneration, at a rate no less than 5% and at a rate no more than 2% respectively in accordance with the articles of incorporation. The remunerations to employees and directors estimated for the years 2023 and 2022 were resolved at the board meeting on Feb. 29, 2024 and Mar. 16, 2023 respectively as follows:

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	2022	2022
	14% 1% 2022
Cash $ 32,060 2,581		Stock
		$ - -

If amount is after the date when the annual any changed parent-company-only financial report is announced, then such change is treated as a change in accounting estimate and entered into the account for the following year after adjustment.

There is no difference between the amount of the employees’ remuneration and directors’ remuneration distributed actually for the years 2022 and 2021 and the corresponding amount recognized in the parent-company-only financial statements of the years 2022 and 2021.

For information of the remunerations to employees and directors resolved by the board of directors of the Company, please check at the market observatory post system of Taiwan Stock Exchange.

(H) Foreign Exchange Gain (Loss)

Foreign Exchange Gain (Loss)
Total foreign exchange gains Total foreign exchange losses Net (loss) gain	2023 $ 14,756 (14,955) ($ 199)	2022
		$ 38,740 (22,190) $ 16,550

XX. Income Tax

(A) Income Tax Recognized in Profit or Loss

The tax (income) expense mainly comprises the items listed as follows:

		2023		2022
Current income tax
Incurred for the current
year		$ 1,321		$ 43,261
Adjusted for the previous
year	(	5,013)	(	5,355)
	(	3,692 )		37,906
Deferred income tax
Incurred for the current
year	(	450)	(	68)
Tax expense (income)
recognized in profit or loss	(	$ 4,142)		$ 37,838

41 -

The accounting income and the tax (income) expense are reconciled as follows:

			2023		2022
	Net profit (loss) before tax of
	continuing operations		$ 24,722	$	190,201
	Tax expense computed based on
	the net profit before tax at the
	legal tax rate		$ 4,944	$	38,040
	Permanent difference	(	7,616 )	(	4,703 )
	Effect of temporary difference		3,543		9,856
	Current adjustment of the tax
	expense of the previous year	(	5,013)	(	5,355)
	Tax (income) expense recognized
	in profit or loss	(	$ 4,142)	$	37,838
(B)	Current Tax Liabilities
		Dec.	31,2023	Dec. 31,2022
	Current tax liabilities
	Income tax payable	$ 10,844		$	15,120

(C)	Deferred Tax Assets Changes in deferred tax assets are as follows: 2023 Deferred tax assets Beginning balance Changes for theyear Temporary difference $ 91 $ 450 2022 Deferred tax assets Beginning balance Changes for theyear Temporary difference $ 23 $ 68	Endingbalance	Endingbalance
		$ 541 Endingbalance
			$ 91

(D) Income Tax Assessment

The profit-seeking enterprise annual income tax returns filed by the Company as of 2021 have been assessed by the tax authority.

XXI. Earnings Per Share

arnings Per Share
Basic earnings per share Diluted earnings per share		2023 $ 0.50 $ 0.49	Unit: NTD per share 2022 $ 2.66 $ 2.59

The effect of stock grants was retroactively adjusted already in calculating earnings per share. The base date for stock grants was determined to be July 21, 2023. Due to retroactive adjustment, changes in basic and diluted earnings per share for 2022 are as follows:

42 -

Basic earnings per share Diluted earnings per share	Before retroactive adjustment $ 2.74 $ 2.66	Unit: NTD per share After retroactive adjustment $ 2.66 $ 2.59

Both the net profit and the weighted average number of common shares outstanding that were used to calculate earnings per share are disclosed as follows:

Net Profit of the Year

follows: Net Profit of the Year
Net profit used to calculate basic and diluted earnings per share Number of Shares Weighted average number of common shares outstanding used to calculate basic earnings per share Impact of potential common shares with dilutive effect: Employee restricted stock award shares Remuneration to employees Weighted average number of common shares outstanding used to calculate diluted earnings per share		2023 $ 28,864 Unit: 2023 57,721 710 184 58,615

If the Company chooses to distribute employees’ remuneration in stock or cash, then for calculation of diluted earnings per share, employees’ remuneration is assumed to be distributed in stock and the weighted average number of common shares outstanding is included when potential common shares have dilutive effect. When calculating diluted earnings per share before the number of shares distributed as employees’ remuneration is resolved at the shareholders’ meeting in the next year, the Company will continue to consider dilutive effect of the potential common shares.

XXII. Government Subsidy

The Company was granted a subsidy of NTD 16,000 thousand for its “Advanced Power Delivery Management Technology Research and Development Center Program” under the A+ Industrial Innovation R&D Program initiated by Ministry of Economic Affairs in 2021. In 2022, The Company obtained a subsidy amount of NTD 9,327 thousand. As of Dec. 31, 2022, the Company obtained accumulatively subsidy amounts of NTD 16,000 thousand.

43 -

XXIII. Capital Risk Management

The Company conducts capital management to ensure the maximum of return on equity on the premise that the Company operates on an ongoing basis. No significant changes in the overall strategy of the Company.

The capital structure of the Company comprises stock capital, capital reserve, retained earnings and other equity.

The Company is not required to meet other external capital requirements.

XXIV. Financial Instruments

－
(A) Information of Fair Value Financial Instruments Not Measured at Fair Value

The management of the Company believes that the book amounts of the financial assets and financial liabilities not measured at fair value are close to fair value.

(B) Types of Financial Instruments

fair value. Types of Financial Instruments
Financial assets Financial assets measured at amortized cost Cash and cash equivalents Accounts receivable Accounts receivable－ Related parties Refundable deposits Financial liabilities Measured at amortized cost Accounts payable Guarantee deposits received	Dec. 31,2023 $ 439,220 108,662 40,266 2,491 94,183 232	Dec. 31,2022
		$ 223,300 103,592 29,074 17,718 58,122 202

(C) Purpose and Policy of Financial Risk Management
Main financial instruments of the Company include accounts receivable (including those from related parties), refundable deposits, accounts payable and lease liabilities. The financial risk management objective of the Company is to manage the exchange rate risk, interest rate risk, credit risk and liquidity risk relevant to operating activities. For reducing relevant financial risks, the Company is committed to identifying, evaluating and avoiding market uncertainties to reduce the potential negative impact of market changes on the financial performance of the Company.

Important financial activities of the Company are reviewed by the board of directors pursuant to applicable regulations and internal control systems. During the implementation of the financial plan, the Company shall comply with applicable financial operating procedures for overall financial risk management and division of powers and responsibilities.

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1. Market Risk

Main financial risks assumed by the Company for its operating activities are exchange rate risk (as stated in (1) below) and interest rate risk (as stated in (2) below).

The Company does not change the methods that it has adopted to manage and measure risk exposure with respect to market risk for financial instruments.

(1) Currency Risk

Part of cash used or generated by the Company is in foreign currencies, so the effect of natural hedge exists. The Company manages exchange rate risk just for the purpose of hedging, not for profit.

The exchange rate risk management strategy is established to review net positions of various currency assets and liabilities, and conduct risk management on net positions.

For book amounts of monetary assets and monetary liabilities of the Company in non-functional currencies on the balance sheet date, please refer to Note 27.

Net investments made by foreign operations of the Company are strategic investments; therefore, the Company does not hedge investment risk.

Sensitivity Analysis

The Company is mainly impacted by fluctuation of USD and CNY exchange rates.

The table below shows the Company’s sensitivity analysis for the situations when the exchange rate of the NTD (the functional currency) to each foreign currency increases or decreases by 5%. Sensitivity analysis considers outstanding foreign currency monetary items, and the conversion made at the end of the period is adjusted by 5% exchange rate fluctuation. The scope of sensitivity analysis includes cash and cash equivalents, accounts receivable (including those from related parties), other receivables (including those from related parties), accounts payable and other payables. The positive number in the table below shows the amount increasing in the pretax net profit when the NTD against each foreign currency depreciates by 5%. If the NTD against each foreign currency appreciates by 5%, the impact on the pretax net profit will be a negative of the same amount.

Profit (loss) before tax	Effect of USD 2023 2022 $ 4,035 $ 5,228	Effect of CNY	Effect of CNY
	2023 $ 4,035	2023 $ 2,503	2022
			$ 1,782

Effects mainly derived from the receivables and payables in USD and CNY which were still outstanding on the balance sheet date and of which the cash flows were not hedged by the Company. The Company’s sensitivity to the USD exchange rate decreased for the current period. It was mostly because the balance of accounts

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payable in USD increased so that net USD assets decreased at the end of the year. Increase in sensitivity to the CNY exchange rate was mostly because cash and cash equivalents and accounts receivable in CYN increased so that net CNY assets increased at the end of the year.

(2) Interest Rate Risk

As consolidated entities of the Company possess fixed rate and floating rate assets, interest rate risk exposure is therefore incurred. The book amounts of financial assets of the Company exposed to interest rate risk on the balance sheet date are as follows:

With fair value interest rate risk －Financial assets －Financial liabilities With cash flow interest rate risk －Financial assets	Dec. 31,2023 $ 342,700 12,662 96,086	Dec. 31,2022
		$ 126,200 15,067 96,581

Sensitivity Analysis

The following sensitivity analysis is determined based on interest rate exposure with respect to non-derivative instruments on the balance sheet date. For the assets with floating interest rates, the analysis is made based on the assumption that the assets outstanding on the balance sheet date are still outstanding during the reporting period.

If the interest rate is increased/decreased by 0.1%, then in the situation where all other variables remain unchanged, the pretax net profit for 2023 and 2022 would increase/decrease by NTD 96 thousand and NTD 97 thousand, which is due to the Company’s interest rate exposure with respect to net assets with variable interest rates.

2. Credit Risk

Credit risk refers to the risk incurred when the counterparty to a transaction delays its contractual obligations and thus causes financial loss of the Company. As of the balance sheet date, the maximum credit risk to which the Company was exposed due to possible failure by the counterparty to perform its obligations so as to cause a financial loss of the Company mainly results from the book amounts of financial assets recognized in the parent-company-only balance sheet.

To mitigate credit risk, the management of the Company has designated a team to take charge of the decision of credit line, credit approval and other monitoring procedures to ensure that proper measures are taken to recover overdue receivables. In addition, the Company has also reviewed recoverable amounts of receivables on a case-by-case basis on the balance sheet date to ensure that a proper amount of impairment loss is allocated for unrecoverable receivables. Accordingly, the management of the Company believes that the Company’s credit risk has significantly reduced.

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The entities from which accounts receivable shall be collected cover many customers engaging in different industries and located in different geographical areas. The Company continues evaluating financial conditions of each customer from which accounts receivable shall be collected.

As stated below, the Company does not have material credit risk exposure to any single counterparty to a transaction or any group of counterparties with similar characteristics, except for Customers A, B, C and D. When one of the counterparties is an affiliated enterprise of the other counterparty, the Company defines these counterparties as the counterparties with similar characteristics. As of Dec. 31, 2023, no credit risk focusing on counterparties, except Customers A, B, C and D, exceeded 5% of the total accounts receivable. However, as Customers A, B, C and D are reputable entities, credit risk is therefore limited.

Liquidity Risk The Company keeps successful business operation and mitigates the impact of cash flow fluctuation by managing and maintaining sufficient cash and cash equivalents.
(1) Liquidity of Non-derivative Financial Liabilities The table below shows the maturity analysis for the remaining contracts of non-derivative financial liabilities, which is conducted based on the undiscounted cash flows of financial liabilities, including cash flows of interest and principal, on the earliest date that the Company is requested to make the repayment.

Dec. 31, 2023

Dec. 31, 2023
Accounts payable Lease liabilities Other current liabilities	Payable upon demand or less than 1 month $ 60,587 $ 772 $ 13,175	1~3 months $ 33,596 $ 1,544 $ 5,613	3 months~ 1year $ - $ 6,286 $ -		1~5years $ - $ 4,370 $ -		Total
							$ 94,183 $ 12,972 $ 18,788

Further information regarding the maturity analysis for the aforementioned financial liabilities is as follows:

Less than 1

Less than 1	Less than 1
year Lease liabilities$ 8,602 Dec. 31, 2022 Payable upon demand or less than 1 month 1~3 months Accounts payable $ 19,122 $ 39,000 Lease liabilities $ 699 $ 1,398 Other current liabilities $ 14,827 $ 9,235			1～5years	Over 5years $ - 1~5years Total $ - $ 58,122 $ 7,264 $ 15,382 $ - $ 24,062	Over 5years
		$ 4,370 3 months~ 1year $ - $ 6,021 $ -	$ 4,370			$	- Total

	$ 39,000 $ 1,398 $ 9,235						$ 58,122 $ 15,382 $ 24,062

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Further information regarding the maturity analysis for the aforementioned financial liabilities is as follows: Less than 1

year 1 ～ 5 years Over 5 years Lease liabilities $ 8,118 $ 7,264 $ -

XXV. Transactions with Related Parties

Transactions between the Company and related parties are as follows:

(A) Name of and Relationship with a Related Party

Name of Related Part Relationshi with the Com an y p p y Leadtrend (Shenzhen) Co., Ltd. A subsidiary

(B)	Operating Revenue Type of Related Party Subsidiaries		2023 $ 276,569		2022
					$ 397,335

Payment collection conditions between the Company and a related party are identical to general transaction conditions.

Account Accounts receivable－ Related parties	Type of Related Party A subsidiary	Dec. 31,2023 $ 40,266	Dec. 31,2022	Dec. 31,2022
				$ 29,074

(D) Other Receivables

Other Receivables
Account Other current assets	Type of Related Party A subsidiary	Dec. 31,2023 $ 514	Dec. 31,2022
				$ 552

(E) Remunerations to Main Managements

Short-term employee benefits Post-employment benefits Share-based payment		2023 $ 26,412 818 4,015 $ 31,245		2022
				$ 22,405 1,278 4,422 $ 28,105

The remunerations to directors and main managements are determined by the remuneration committee based on individual performance and market trends.

XXVI. Material Contingent Liabilities and Unrecognized Contractual

Commitments

The material commitments of the Company as of the balance sheet date are as follows:

(A) Material Commitments

The Company signed a patent technology transfer agreement with a company in March 2018. The consideration for the transfer was agreed to be made in

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installations for 3 terms. The total contract amount for the 1[st] and 2[nd] terms was USD 600 thousand. The amount to be paid for the 3[rd] term was calculated at a certain percentage of the proceeds of patent derivatives earned for 3 years from the launch date, and should be no less than USD 300 thousand.

XXVII. Information of Foreign Currency Assets and Liabilities Having a

Material Impact

The following information is expressed in foreign currencies, rather than the functional currency used by the Company. The disclosed exchange rate refers to the exchange rate of the foreign currency to the functional currency. Foreign currency financial assets and liabilities having a material impact are as follows:

Dec. 31, 2023

Dec. 31, 2023
Foreign currency Foreign currency assets Monetary item USD $ 4,808 CNY 11,569 Non-monetary item Subsidiaries accounted for using the equity method CNY 54,425 Foreign currency liabilities Monetary item USD 2,180 Dec. 31, 2022 Foreign currency Foreign currency assets Monetary item USD $ 4,748 CNY 8,084 Non-monetary item Subsidiaries accounted for using the equity method CNY 46,215 USD 111 (Continued on next page)	Exchange rate 30.705 (USD:NTD) 4.327 (CNY:NTD) 4.327 (CNY:NTD) 30.705 (USD:NTD) Exchange rate 30.710 (USD:NTD) 4.408 (CNY:NTD) 4.408 (CNY:NTD) 30.710 (USD:NTD)	Book amount
		$ 147,642 50,058 $ 197,700 $ 235,499 $ 66,952 Book amount
			$ 145,819 35,635 $ 181,454 $ 203,713 3,411 $ 207,124

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(Brought forward from previous page)

Forei n currenc Exchan e rate Book amount g y g Foreign currency liabilities Monetary item USD $ 1,356 30.710 (USD:NTD) $ 41,269

The realized and unrealized net foreign exchange (losses) gains for 2023 and 2022 was (NTD199) thousand and NTD 16,550 thousand respectively. As foreign currency transactions are diversified, disclosing foreign exchange gains or losses based on each foreign currency with material impact is not feasible.

XXVIII. Disclosures in the Notes

(A) Material Transactions, and (B) Reinvestment-related Information:
Funds lent to others: None
Endorsement and guarantee for others: None
Negotiable securities held at the end of the year:

Company holding securities	Type of negotiable securities	Name of negotiable securities	Relation with the issuer of negotiable securities	Account		End o	fyear		Remark
					Number of shares or units (Thousand)	Book amount	Sharehol ding％	Fair value
Leadtrend Shenzhen	Funds	CR Yuanta Cash Money Market Fund B	－	Financial assets at FVTPL－Current	-	$ 83,823		$ 83,823	Note 1

Note 1: It was calculated based on the net worth on Dec. 31, 2023.
Note 2: There were not any users providing collaterals or pledges for loans or being restricted by other agreements with respect to the negotiable securities listed above as of Dec. 31, 2023.
Accumulated purchases or sales of negotiable securities up to NTD 300 million or 20% of the paid-in capital: None
An amount of obtained real estate up to NTD 300 million or 20% of the paid-in capital: None
Proceeds up to NTD 300 million or 20% of the paid-in capital from disposal of real estate: None
Purchases from or sales to related parties up to NTD 300 million or 20% of the aid-in ca ital: p p

Selling (purchasing) company	Name of counterparty	Relation		Tran	saction		Transaction t from those transactions	erms different for general ,and reasons	Notes and receivable	accounts (payable)	Remark
			Sale (purchase)	Amount	Of total purchase (sale)(％)	Credit period	Unit price	Credit period	Balance	Of the total notes and accounts receivable (payable) （％）
The Company	Leadtrend (Shenzhen) Co., Ltd.	Parent company and subsidiary	Sale	$ 276,569	27	60 days after monthly settlement	Note	Correspondin g	$ 40,266	27	－

Note: The selling price at which the Company sold products to the related party was determined based on the arm’s length principle.
Receivables from related parties up to NTD 100 million or 20% of the paid-in capital: None
Transactions of derivatives: None
Information of Investee Companies:

						U n i t : I	n t h o u s a n	d s o f N T D ; i n t h o u s a n d s o f U S D	d s o f N T D ; i n t h o u s a n d s o f U S D	d s o f N T D ; i n t h o u s a n d s o f U S D
Name of investee company	Location	Main business activities	Original in amo	vestment unt	Held at	the end of	the year	Current profit (loss) of the investee company	Investment gain (loss) recognized for theyear	Remark
			End of the year	End of last year	Number of shares	Ratio％	Book amount
Leadtrend Technology (Samoa)Limited	Samoa	Investments	USD	USD 768	-	-	$ -	( $ 23 )	( $ 23 )	A subsidiary

Note: Leadtrend Technology (Samoa) Limited was liquidated and had registration nullified in November 2023.

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(C) Information of Investments in Mainland China:

Name of investee company in Mainland China, main business activities, paid-in capital, investment method, funds remitted in and out, shareholding, investment gain or loss, book value of investments at the end of the year, investment gain (loss) remitted back already, and limit of investments in Mainland China:

										U	nit: In thousan	ds of NTD;in tho	usands of USD
Name of investee company in Mainland China	Min business activities	Paid-in capital	Investmen t method	Accu inv a remi Taiw begi th	mulated estment mount tted from an at the nning of e year	Investment am or recovere	ount remitted d in theyear	Accumulated investment amount remitted from Taiwan at the end of the year	Investee company’s profit (loss) of the year	Percentage of shares held by the Company through direct or indirect investment	Investment gain (loss) recognized for the year (Note 2)	Ending book value of investment (Note 2)	Investment gain remitted back to Taiwan as of the end of the year
						Remitted	Recovered
Leadtrend (Shenzhen) Co., Ltd.	Design and R&D of computer application software and system integration; wholesale of computer software, integrated circuits, semiconductor chips and related electronic parts and components; manufacturing of electronic components, manufacturing of integrated circuit chips and products, manufacturing of computer software, hardware and peripheral equipment	$ 303,980 ( USD 9,900 )	Note 1	$ ( US	216,470 D 7,050 )	$ -	$ -	$ 216,470 ( USD 7,050 )	$ 38,103 ( USD1,223 )	100%	$ 38,103 ( USD1,223 )	$ 235,499 ( USD 7,670 )	$ -

Accumulated investment amount remitted from Taiwan to Mainland China at the end of theyear					Investment amount approved by Investment Commission, Ministryof Economic Affairs				60% of net worth, the limit of investment provided by Investment Commission, Ministryof Economic Affairs
$216,470(USD 7,050)					$303,980(USD9,900)				$985,777

Note1: The investment was made physically in Mainland China. Note2: It was calculated based on the financial statements of the same accounting period audited by CPAs. Note3: The figures in a foreign currency indicated in the table were converted into NT dollars at the exchange rate announced on the reporting date.

  - Note4: The Company was approved, by the Investment Commission, Ministry of Economic Affairs on Oct. 24, 2016, to make investments in an amount of USD 6 million. If the Company fails to complete such investments within 3 years after the date of approval, the approved investment amount shall be invalid. On July 17, 2018, the Investment Commission, Ministry of Economic Affairs approved that Leadtrend Technology (Samoa) Limited, an investee company in a third area, should use its own funds, instead of USD 2.8 million in the investment amount, to invest in Leadtrend (Shenzhen) Co., Ltd. directly. As of Dec. 31, 2023, the Company and Leadtrend Technology (Samoa) Limited remitted USD 1 million and USD 1.85 million, respectively, for investment. The rest of the aforementioned investment amount has been invalidated.

  - Note5: The Company was approved, by the Investment Commission, Ministry of Economic Affairs on Dec. 12, 2019, to make investments in an amount of USD 8 million, and Leadtrend Technology (Samoa) Limited, an investee company in a third area, was also approved to use its own funds in an amount of USD 1 million to invest in Leadtrend (Shenzhen) Co., Ltd. directly. As of Dec. 31, 2023, Leadtrend and Leadtrend Technology (Samoa) Limited remitted USD 5.15 million and USD 1 million, respectively, for investment. The rest of the aforementioned investment amount has been invalidated.

Material transactions with investee companies in Mainland China directly or through a third region, the prices, payment terms, unrealized gains (losses) with respect to the transactions, and relevant information helpful for understanding the impact of investments in Mainland China on the financial statements: Refer to (A) 7.
(D) Information of Key Shareholders: Name of Shareholder Holding Over 5% of E uit Number of Shares Held and Percenta e of Shareholdin : q y, g g

Equity,Number of Shares Held	and Percentage of Shareholding:	and Percentage of Shareholding:
Name of key shareholder	Shares
	Number of shares held	Percentage of shareholding (%)
Jie NengInvestment Co.,Ltd.	4,784,628	8.12

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AI assistant

LD — Annual Report 2023

52348_rns_2023-11-13_45cca497-91c2-428c-83a3-8f0d279081e2.pdf

Leadtrend Technology Corporation

Parent-company-only Financial Statements and Independent Auditors’ Report For the years ended Dec. 31, 2023 and 2022

§ Table of Contents §

To: Leadtrend Technology Corporation

Opinion

Basis of Opinion

Key Audit Matters

Recognition of Sales Revenue

Inventory Evaluation

Responsibilities of Management and those Charged with Governance for the Parent-company-only Financial Statements

Leadtrend Technology Corporation

Parent-company-only Balance Sheet

Dec. 31, 2023 and 2022

Leadtrend Technology Corporation

Parent-company-only Statement of Comprehensive Income

for the years ended Dec. 31, 2023 and 2022

Leadtrend Technology Corporation

Leadtrend Technology Corporation

Parent-company-only Statement of Cash Flows for the years ended Dec. 31, 2023 and 2022

Leadtrend Technology Corporation

I. Corporate History

II. Date and Procedure of Adoption of Financial Statements

III. Applicability of New and Amended Standards and Interpretations

IV. Explanations of Material Accounting Policies

Assumption Uncertainty

Main Sources of Estimates and Assumption Uncertainty

VI. Cash and Cash Equivalents

VIII. Inventories

IX. Subsidiaries

X. Property, Plant and Equipment

Self-used

XI. Lease Agreement

XII. Intangible Assets

XV. Post-employment Benefit Plan

XVI. Equity

XVII. Share-based Payment

Employee Restricted Stock Award Share

(D) Financial Cost

XX. Income Tax

XXI. Earnings Per Share

XXII. Government Subsidy

XXIII. Capital Risk Management

XXIV. Financial Instruments

1. Market Risk

Sensitivity Analysis

(2) Interest Rate Risk

Sensitivity Analysis

2. Credit Risk

Commitments

(A) Material Commitments

XXVII. Information of Foreign Currency Assets and Liabilities Having a

Material Impact

Dec. 31, 2023

XXVIII. Disclosures in the Notes

(C) Information of Investments in Mainland China:

More from LD

LD Annual Report 2023