LD - Interim / Quarterly Report 2023

Stock Code: 3588

LEADTREND TECHNOLOGY CO. LTD. AND SUBSIDIARIES

Consolidated Financial Statements for the Three Months Ended March 31, 2023 and 2022 and Independent Auditors’ Review Report

Address: 1, 4/F, 1, the Second Taiyuan Street, Zhubei City, Hsinchu County Telephone: (03) 5543588

REVIEW REPORT OF INDEPENDENT ACCOUNTANTS

The Board of Directors and Shareholders LEADTREND TECHNOLOGY CO. LTD.,

Introduction

We have reviewed the accompanying consolidated balance sheets of M3 Technology Inc. and its subsidiaries (collectively, the “Group”) as of March 31, 2023 and 2022, and the related consolidated statements of comprehensive income, the consolidated statements of changes in equity and cash flows for the three months then ended, and the related notes to the consolidated financial statements, including a summary of significant accounting policies (collectively referred to as the “(consolidated) financial statements”). Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and International Accounting Standard 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews.

Scope of Review

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

Conclusion

Based on our reviews, nothing has come to our attention that caused us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Group as of March 31, 2023 and 2022, and of its consolidated financial performance and its consolidated cash flows for the three months ended March 31, 2023 and 2022 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and International Accounting Standard 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

The engagement partners on the reviews resulting in this independent auditors’ review report are Cai Meizhen and Zhong Mingyuan.

Deloitte & Touche Taipei, Taiwan Republic of China

May 2, 2023

Notice to Readers The accompanying consolidated financial statements are intended only to present the consolidated financial position, financial performance and cash flows in accordance with accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to review such consolidated financial statements are those generally applied in the Republic of China. For the convenience of readers, the independent auditors’ review report and the accompanying consolidated financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language independent auditors’ review report and consolidated financial statements shall prevail.

LEADTREND TECHNOLOGY CO. LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

(In Thousands of New Taiwan Dollars)

ASSETS Current asset Cash and cash equivalents (Note 6) Financial Assets measured at fair value through profit and loss - Current (Note 7) Notes and Accounts Receivable (Note 8) Inventory (Note 9) Non-current assets held for sale and discontinued operations (Note 10) Other current assets (Note 15) Total current assets Non-Current Assets Real estate, plant and equipment (Notes 12) Right-of-use assets (Note 13) Intangible assets (Note 14) Deferred income tax assets Other non-current assets (Note 15) Total non-current assets Total assets Liabilities and Equity		March 31, 2023 (Reviewed) Amount ％ $ 223,795 12 78,410 4 141,179 8 783,282 43 8,185 1 37,010 2 1,271,861 70 511,341 28 16,594 1 16,460 1 - - 10,834 - 555,229 30 $ 1,827,090 100 $ 58,175 3 37,508 2 14,944 1 11,487 - 53,288 3 175,402 9 78 - 5,195 1 4,879 - 1,051 - 11,203 1 186,605 10 568,528 31 258,027 14 84,732 5 45,667 2 125 - 199,793 11 503,494 28 6,932 - 26,813) ( 1) 1,640,485 90 $ 1,827,090 100		December 31, 2022 (Audited) Amount ％ $ 250,680 13 55,634 3 169,644 9 808,004 43 - - 36,407 2 1,320,369 70 529,530 28 19,712 1 13,829 1 91 - 8,871 - 572,033 30 $ 1,892,402 100 $ 63,567 3 37,508 2 15,120 1 12,415 1 97,519 5 226,129 12 - - 7,568 1 4,840 - 914 - 13,322 1 239,451 13 568,838 30 258,027 14 84,732 4 47,567 3 106 - 199,793 11 520,231 27 5,602 - 31,945) ( 2) 1,652,951 87 $ 1,892,402 100		March 31, 2022 (Reviewed)	March 31, 2022 (Reviewed)
		Amount $ 223,795 78,410 141,179 783,282 8,185 37,010 1,271,861 511,341 16,594 16,460 - 10,834 555,229 $ 1,827,090 $ 58,175 37,508 14,944 11,487 53,288 175,402 78 5,195 4,879 1,051 11,203 186,605 568,528 258,027 84,732 45,667 125 199,793 503,494 6,932 26,813) 1,640,485 $ 1,827,090		Amount $ 250,680 55,634 169,644 808,004 - 36,407 1,320,369 529,530 19,712 13,829 91 8,871 572,033 $ 1,892,402 $ 63,567 37,508 15,120 12,415 97,519 226,129 - 7,568 4,840 914 13,322 239,451 568,838 258,027 84,732 47,567 106 199,793 520,231 5,602 31,945) 1,652,951 $ 1,892,402		Amount $ 707,881 123,801 300,101 597,700 - 44,954 1,774,437 473,504 32,316 16,237 1,501 20,511 544,069 $ 2,318,506 $ 279,430 101,899 80,578 14,723 59,629 536,259 - 17,794 7,802 1,262 26,858 563,117 528,646 273,131 84,732 51,708 106 166,987 676,914 11,081 37,916) 1,755,389 $ 2,318,506	％
	(		(		(		31 5 13 26 - 2 77 20 1 1 - 1 23 100 12 4 3 1 3 23 - 1 - - 1 24 23 12 4 2 - 7 29 1 ( 2) 76 100
Current liability Payable account Remuneration payable to staff and directors (Note 21) Current income tax liabilities (Note 22) Lease liabilities - current (Note 13) Other current liabilities (Note 16) Total current liabilities Non-current liability Deferred income tax liabilities Lease liabilities - non-current (Note 13) Net defined benefit liabilities - non-current (Notes 4 and 17) Deposits received Total non-current liabilities Total liabilities Equity (Notes 18 and 19) Share capital Common stock Capital reserve Share premium Donations received from shareholders Stocks with restricted employee's option Other Retained earnings Statutory surplus reserves Undistributed earnings Other equity Exchange difference in conversion of financial statements by foreign operating institutions Remuneration not gained by staff Total equity Total liabilities and equity

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

LEADTREND TECHNOLOGY CO. LTD. AND ITS SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share) (Reviewed, Not Audited)

Three	Months Ended March31	Months Ended March31
2023		2022
		Amount $ 552,416 3,714) 548,702 317,885 230,817 24,520 28,156 84,771 137,447 93,370 888 500 19,282 166) 20,504 113,874		％
	( (		(	101 1) 100 58 42 5 5 15 25 17 - - 4 - 4 21

7950 Income tax expense (Notes 4 and 22) 8200 Net profit for the year Other composite gains and losses 8360 Items that may be subsequently reclassified as profit or loss: 8361 Exchange difference in conversion of financial statements by foreign operating institutions (Note 18) 8500 Total consolidated profit and loss for the year Earnings per share (Note 23) 9750 Basic 9850 Dilutive	- - ( 16,737 ) ( 8 ) $ 1,330 1 ($ 15,407) ( 7) ($ 0.30) ($ 0.30)	19,917 93,957 $ 9,214 $ 103,171 $ 1.69 $ 1.65	4 17 2 19
	( ( (

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

LEADTREND TECHNOLOGY CO. LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

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

(Reviewed, Not Audited)

(Reviewed, Not Audited)
Code A1 Balance as of January 1, 2022 C17 Changes in other capital reserves D1 Net profit for the three months ended March 31, 2022 D3 Other comprehensive income for the three months ended March 31, 2022, net of income tax D5 Total comprehensive income for the three months ended March 31, 2022 N1 Compensation cost on stocks with restricted employee's option Z1 Balance as of March 31, 2022 A1 Balance as of January 31, 2023 C17 Changes in other capital reserves D1 Net profit for the three months ended March 31, 2023 D3 Other comprehensive income for the three months ended March 31, 2023, net of income tax D5 Total comprehensive income for the three months ended March 31, 2023 N1 Canceled stocks with restricted employee's option N1 Compensation cost on stocks with restricted employee's option Z1 Balance as of March 31, 2023	Capital on issued co	m	mon shares Amount $ 528,646 - - - - - $ 528,646 $ 568,838 - - - - 310 - $ 568,528		Capital	reserve	Other $ 98 8 - - - - $ 106 $ 106 19 - - - - - $ 125		Retained earnings			Total $ 749,944 - 93,957 - 93,957 - $ 843,901 $ 720,024 - 16,737 ) - 16,737) - - $ 703,287	Other equityitems Foreign operators Exchange difference in conversion of financial statements Remuneration not gained by staff $ 1,867 ( $ 42,573 ) - - - - 9,214 - 9,214 - - 4,657 $ 11,081 ($ 37,916) $ 5,602 ( $ 31,945 ) - - - - 1,330 - 1,330 - - - - 5,132 $ 6,932 ($ 26,813)			Total equity
													Foreign operators Exchange difference in conversion of financial statements $ 1,867 - - 9,214 9,214 - $ 11,081 $ 5,602 - - 1,330 1,330 - - $ 6,932
	Number of Holdings (Shares In Thousands) 52,864 - - - - - 52,864 56,883 - - - - ( 31 ) - 56,852			Share premium $ 273,131 - - - - - $ 273,131 $ 258,027 - - - - - - $ 258,027	Donations received from shareholders $ 84,732 - - - - - $ 84,732 $ 84,732 - - - - - - $ 84,732	Restricted employee employee's option $ 51,708 - - - - - $ 51,708 $ 47,567 - - - - 310 ( 2,210) $ 45,667		Statutory surplus reserves $ 166,987 - - - - - $ 166,987 $ 199,793 - - - - - - $ 199,793		Undistributed earnings $ 582,957 - 93,957 - 93,957 - $ 676,914 $ 520,231 - 16,737 ) - 16,737) - - $ 503,494
	(	(				(			( (		( (			( ( ( (	( (	$ 1,647,553 8 93,957 9,214 103,171 4,657 $ 1,755,389 $ 1,652,951 19 16,737 ) 1,330 15,407) - 2,922 $ 1,640,485

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

LEADTREND TECHNOLOGY CO. LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)

(Reviewed, Not Audited)

(In Thousands of New Taiwan Dollars) (Reviewed, Not Audited)
Code Cash flow from operating activities A10000 Pre-tax net profit A20010 Revenue expense loss items： A20100 Depreciation expense A20200 Amortization cost A20400 Net benefit of financial assets and liabilities measured at fair value through profit and loss A20900 Financial Costs A21200 Interest incomes A21900 Compensation cost on stocks with restricted employee's option A24100 Net gain/loss on foreign currency exchange A30000 Net changes in operating assets and liabilities A31150 Decrease/increase in notes and accounts receivable A31200 Inventory increase A31240 Decrease/increase in other current assets A32150 Increase/decrease in notes payable and accounts A32200 Increase/decrease in compensation payable to staff and directors A32230 Increase in other current liabilities A32240 Decrease in net defined benefit liability A33000 Cash inflow to/outflow from operations A33300 Interest paid A33500 Income tax paid AAAA Net cash inflow to/outflow from operating activities Cash flow from investment activities B00100 Acquisition of financial assets measured at fair value through profit and loss	Three Months Ended March31
	2023 ( $ 16,737 ) 18,890 2,830 ( 331 ) 98 ( 514 ) 2,922 ( 1,604 ) 29,889 24,722 ( 579 ) ( 6,067 ) - ( 40,484 ) 39 13,074 ( 98 ) ( 7) 12,969 ( 22,155 )	2022
		$ 113,874 21,282 3,374 ( 578 ) 166 ( 888 ) 4,657 ( 13,409 ) 31,624 ( 139,479 ) ( 21,631 ) 21,565 23,578 ( 30,238 ) ( 1,892) 12,005 ( 166 ) ( 4) 11,835 ( 22,530 )

B00200	Dispose of financial assets measured at
	fair value through profit and loss		-		13,518
B02700	Acquisition of real estate, plant and
	equipment	(	11,215 )	(	21,528 )
B03700	Increase in deposit margin	(	5 )	(	41 )
B04500	Acquisition of intangible assets	( $	5,461 )	( $	9,973 )
B07500	Interest received		490		882
BBBB	Net cash outflows from investment
	activities	(	38,346)	(	39,672)
	Cash flows from financing activities
C03000	Increase/decrease in deposits received		137		16
C04020	Repayment of lease principal	(	3,326 )	(	3,638 )
C09900	Other financing activities		19		8
CCCC	Net cash outflow to financing
	activities	(	3,170)	(	3,614)
DDDD	Effect of exchange rate changes on cash and
	cash equivalents		1,662		9,901
EEEE	Current net increase/decrease in cash and cash
	equivalents in current year	(	26,885 )	(	21,550 )
E00100	Balance of cash and cash equivalents at the
	beginning of the year		250,680		729,431
E00200	Balance of cash and cash equivalents at the end
	of the year	$	223,795	$	707,881

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

LEADTREND TECHNOLOGY CO. LTD. AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS THREE MONTHS ENDED MARCH 31, 2023 AND 2022 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise) (Reviewed, Not Audited)

I. History of Company

LEADTREND TECHNOLOGY CO. LTD. (hereinafter referred to as "the Company") was established subject to the approval of the Ministry of Economic Affairs on September 18, 2002. It is mainly engaged in research, development, production, manufacturing and sales of analog integrated circuits.

The company offered its shares at the Taiwan Stock Exchange on August 14, 2009. These consolidated financial statements of the Company are expressed in the Company's functional currency - New Taiwan Dollar.

II. Date and Procedure of Adopting Financial Statements

These consolidated financial statements were approved and issued by the Board of directors on May 2, 2023.

III. Application of Newly Issued and Amended Standards and Interpretations

(I) International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), Interpretation (IFRIC) and Interpretation Notices (SIC) recognized and issued by the Financial Supervisory Commission (hereinafter referred to as "IFRSs") as applied initially

The application of the revised IFRSs approved and issued by the FSC will not result in any material change in the accounting policies of Affiliated Companies.

(II) IFRSs issued by IASB but not approved and issued by FSC

Newly issued/amended/revised criteria and interpretations Amendments to IFRS 10 and IAS 28 "Sale or Investment of Assets Between Investors and Their Affiliates or Joint Ventures" Amendment to IFRS 16 "Lease Liabilities in Sale and Leaseback" IFRS 17 "Insurance Contract" Amendment to IFRS 17 Amendment to IFRS 17 "First Application of IFRS 17 and IFRS 9- Comparative Information" Amendment To IAS 1 "Classification Of Liabilities as Current or Non-Current" Amendment to IAS 1 "Non-current Liabilities with contractual Terms"	Effective date of IASB issued(Note 1)
	TBD January 1, 2024 (Note 2) January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2024 January 1, 2024

Newly issued/amended/revised criteria and
interpretations
Amendments to IFRS 10 and IAS 28 "Sale or
Investment of Assets Between Investors and Their
Affiliates or Joint Ventures"
Amendment to IFRS 16 "Lease Liabilities in Sale
and Leaseback"
IFRS 17 "Insurance Contract"
Amendment to IFRS 17
Amendment to IFRS 17 "First Application of IFRS
17 and IFRS 9- Comparative Information"
Amendment To IAS 1 "Classification Of Liabilities
as Current or Non-Current"
Amendment to IAS 1 "Non-current Liabilities with
contractual Terms"

Effective date of IASB
issued(Note 1)

TBD
January 1, 2024 (Note 2)
January 1, 2023
January 1, 2023
January 1, 2023
January 1, 2024
January 1, 2024

Note 1: Unless otherwise noted, the above new issued/amended/revised criteria or interpretation shall take effect during the annual reporting period commencing after such date.
Note 2: The Seller also as Lessee shall retroactively apply the amendments to IFRS 16 to sale and leaseback transactions concluded after the initial application of IFRS 16.

As of the date of adopting these consolidated financial statements, the Company continues to evaluate the impact of amendments to other standards and interpretations on financial position and financial performance, and the relevant impact will be disclosed when the evaluation is completed.

IV. Summary of Major Accounting Policies

(I) Compliance statement

These consolidated financial statements have been prepared in accordance with the financial reporting standards of securities issuers and the IFRSs approved and issued by the Financial Regulatory Commission.

(II) Preparation basis

These consolidated financial statements have been prepared on a historical cost basis, except for financial instruments measured at fair value and net defined benefit liabilities recognized at present value of defined benefit obligations less the fair value of planned assets.

Fair value measurement is classified as Levels 1 through Level 3 according to the observable degree and importance of relevant input values:

Level 1 Input value: Refers to the quotation in the active market (without adjustment) of the same asset or liability available at the measurement date.
Level 2 Input value: Refers to the observable input value of an asset or liability, either directly (i.e., price) or indirectly (i.e., derived from price), except as quoted in level 1.
Level 3 Input value: Refers to the unobservable input value of an asset or liability.

(III) Consolidation basis

These consolidated financial statements cover the financial statements of the Company and the entities under its control (i.e. subsidiaries). The financial statements of the subsidiaries has been adjusted to bring their accounting policies in line with those of the Company. In the preparation of consolidated financial statements, all transactions between individual affiliates, account balances, gains and losses have been wiped out.

Please refer to Notes 10 and 29 for details on the subsidiaries, shareholding ratios and operating items.

(IV) Other significant accounting policies

Except for the following, please refer to the consolidated financial statements for the year ended December 31, 2022.

1) Retirement benefits

Pension cost for an interim period is calculated on a year-to-date basis by using the actuarially determined pension cost rate at the end of the prior financial year, adjusted for significant market fluctuations since that time and for significant plan amendments, settlements, or other significant one-off events.

2) Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax. Interim period income taxes are assessed on an annual basis and calculated by applying to an interim period’s pre-tax income the tax rate that would be applicable to expected total annual earnings.

V. Material Accounting Judgments and Key Sources of Estimation Uncertainty

Refer to the consolidated financial statements for the year ended December 31, 2022 for the material

VI. Cash and Cash Equivalents

Bank checks and demand deposits Foreign currency deposits Petty cash and cash on hand Cash equivalents Time deposits Commercial note Repurchase Agreement	March 31,2023 $ 48,939 24,854 857 140,145 9,000 - $ 223,795	December 31,2022 $ 59,085 61,549 775 129,271 - - $ 250,680	March 31,2022	March 31,2022
				$ 76,777 108,302 835 446,149 20,000 55,818 $ 707,881

The interest rate for cash and equivalent cash at the balance sheet date ranges as follows:

March 31, 2023 December 31, 2022 March 31, 2022 Bank deposit 0.1%~1.48% 0.1%~1.41% 0.01%~0.82%

VII. Financial Instruments measured at fair value through profit and loss

March 31, 2023 December 31, 2022 March 31, 2022

Financial Assets - Current Non-derivative financial assets measured at fair value compulsively through profit and loss - Fund benefit certificate $ 78,410 $ 55,634 $ 123,801

VIII. Notes and Accounts Receivable

Notes receivable Measured at amortized cost Total book amount Receivable account Measured at amortized cost Total book amount	March 31, 2023 $ 16,653 $ 124,526	December 31, 2022 $ 18,854 $ 150,790	March 31, 2022	March 31, 2022
				$ 31,438 $ 268,663

The Company's average credit period for merchandise sales is 30 to 45 days per month, and accounts receivable are interest-free. The Company will use other publicly available financial information and historical transaction histories to grade major customers. The Company continuously monitors credit risks and the credit ratings of the other trading party. To mitigate credit risks, the management of the Company assigns a dedicated team to determine credit lines, approve credit lines and other monitoring procedures to ensure that appropriate actions are taken to collect overdue receivables. In addition, the Company reviews the recoverable amounts of receivables on a case-by-case basis at the balance sheet date to ensure that appropriate impairment losses have been included in unrecoverable receivables. Accordingly, the Company's management believes that the Company's credit risk has been significantly reduced.

The Company recognizes allowance losses for accounts receivable on the basis of expected credit losses during the duration of existence. The expected credit loss during the life period is calculated using the reserve matrix, which takes into account the customer's past default record and the current financial position and industrial economic situation, as well as the GDP forecast and industrial outlook. As the Company's credit loss history shows that there is no significant difference in loss patterns among different customer groups, the reserve matrix does not further distinguish between customer groups and only sets the expected credit loss rate based on the overdue days of accounts receivable.

If there is evidence that the other trading party is in serious financial difficulties and the Company cannot reasonably expect the amount to be recovered, the Company will directly write off the relevant accounts receivable, but will continue to pursue recovery activities, as the amount recovered will be recognized as profit or loss.

Refer to the table below for an aging analysis of accounts receivable at the end of the reporting period.

Aging analysis of net accounts receivable

No overdue nor derogation	March 31, 2023 $ 124,526	December 31, 2022 $ 150,790	March 31, 2022	March 31, 2022
				$ 268,663

IX. Inventory

Finished goods Products in process Raw materials	March 31, 2023 $ 175,105 392,779 215,398 $ 783,282	December 31, 2022 $ 118,812 462,857 226,335 $ 808,004	March 31, 2022	March 31, 2022
				$ 143,552 375,748 78,400 $ 597,700

The inventory-related cost of goods sold in 2022 and 2021 was $137,694,000 and $317,885,000 respectively.

The cost of goods sold for years 2022 and 2021 including losses on inventory decline and stagnation were $488,000 and $0 respectively.

X. Non-current Assets Held for Sale and. Discontinued Operations

Real estate, plant and equipment	March 31, 2023 $ 8,185	December 31, 2022 $ -	March 31, 2022	March 31, 2022
				$ -

The Company signed a contract to sell part of the land and premises and buildings in March 2023 for a total price of $10,780,000.

XI. Subsidiary

(I) Subsidiaries incorporated into consolidated financial statements

The subjects incorporated into preparation of these consolidated financial statements are listed below:

	are listed below:
Name of company invested in: LEADTREND TECHNOLOGY CO. LTD.	Name of Subsidiary Leadtrend Technology (Samoa) Limited LEADTREND TECHNOLOGY (SHENZHEN) CO. LTD. ("LEADTREND SHENZHEN")	Nature of business Various investment business Computer software design service, computer system integration service, wholesale of integrated circuits and related electronic products, and agent import and export business activities	Percentage of Holdings March 31, 2023 December 31, 2022 March 31, 2022 Descript ion
			March 31, 2023
			100% 100%	100% 100% － 100% 100% －

XII. Real Estate, Plant and Equipment

l Estate, Plant and Equipment
Used by the Company itself Assets leased under operating leases	March 31, 2023 $ 485,234 26,107 $ 511,341	December 31, 2022 $ 529,530 - $ 529,530	March 31, 2022
				$ 453,316 20,188 $ 473,504

Used by the Company itself

Cost Balance as of January 1, 2023 Rental property change to operating lease Increase Reduce Reclassification for sale Conversion adjustment Balance as of March 31, 2023 Accumulated depreciation Balance as of January 1, 2022 Rental property change to operating lease Increase Decrease Reclassification for sale Conversion adjustment Balance as of March 31, 2023 Net amount on March 31, 2023 Net amount on December 31, 2022 and January 1,2023 Cost Balance as of January 1, 2022 Rental property change to operating lease Increase Decrease Conversion adjustment Balance as of March 31, 2022 Accumulated depreciation Balance as of January 1, 2022 Rental property change to operating lease Increase Decrease Conversion adjustment Balance as of March 31, 2022 Net amount on March 31, 2022		Land $ 86,200 6,111 ) - - 2,101 ) - $ 77,988 $ - - - - - - $ - $ 77,988 $ 86,200 $ 72,270 (4,597) - - - $ 67,673 $ - - - - - $ - $ 67,673		Buildings $ 347,845 22,931 ) - - 7,055 ) 229 $ 318,088 $ 52,752 2,769 ) 2,581 - 971 ) 10 $ 51,603 $ 266,485 $ 295,093 $ 301,363 (17,659) - - 1,608 $ 285,312 $ 42,302 1,980 ) 2,325 - 18 $ 42,665 $ 242,647		R&D equipment $ 284,890 - 596 8 ) - 72 $ 285,550 $ 188,290 - 4,541 8 ) - 39 $ 192,862 $ 92,688 $ 96,600 $ 252,971 - 5,167 133 ) 315 $ 258,320 $ 161,696 - 6,287 133 ) 246 $ 168,096 $ 90,224		Furniture and fixtures $ 35,386 - 406 - - 20 $ 35,812 $ 27,388 - 1,095 - - 15 $ 28,498 $ 7,314 $ 7,998 $ 33,492 - 1,159 221 ) 144 $ 34,574 $ 24,902 - 825 221 ) 112 $ 25,618 $ 8,956		Molding equipment $ 26,082 - - - - - $ 26,082 $ 24,610 - 206 - - - $ 24,816 $ 1,266 $ 1,472 $ 25,356 - - - - $ 25,356 $ 23,950 - 145 - - $ 24,095 $ 1,261	Improvements on leased property $ 26,192 - - - - 19 $ 26,211 $ 20,266 - 370 - - 19 $ 20,655 $ 5,556 $ 5,926 $ 21,632 - - - 152 $ 21,784 $ 16,484 - 1,091 - 139 $ 17,714 $ 4,070		Mask $ 275,274 - 4,483 - - - $ 279,757 $ 239,033 - 6,787 - - - $ 245,820 $ 33,937 $ 36,241 $ 242,950 - 11,424 - - $ 254,374 $ 209,029 - 6,860 - - $ 215,889 $ 38,485		Total
	( (		( ( ( ( (		( ( ( (		( (							( ( ( ( ( ( ( ( (	$1,081,869 29,042 ) 5,485 8 ) 9,156 ) 340 $1,049,488 $ 552,339 2,769 ) 15,580 8 ) 971 ) 83 $ 564,254 $ 485,234 $ 529,530 $ 950,034 (22,256) 17,750 354 ) 2,219 $ 947,393 $ 478,363 1,980 ) 17,533 354 ) 515 $ 494,077 $ 453,316

No impairment losses were recognized or reversed in the period from January 1 to March 31 of 2023 and 2022.

Assets leased under operating leases

Cost Balance as of January 1, 2023 From used by the Company itself Balance as of March 31, 2023 Accumulated depreciation Balance as of January 1, 2023 From used by the Company itself Depreciation Expense Balance as of March 31, 2023 Net amount on March 31, 2023 Net amount on December 31, 2022 and January 1,2023 Cost Balance as of January 1, 2022 From used by the Company itself Balance as of March 31, 2022 Accumulated depreciation Balance as of January 1, 2022 From used by the Company itself Depreciation Expense Balance as of March 31, 2022 Net amount on March 31, 2022		Land $ - 6,111 $ 6,111 Land $ - - - $ - $ 6,111 $ - $ - 4,597 $ 4,597 $ - - - $ - $ 4,597		Buildings $ - 22,931 $ 22,931 Buildings $ - 2,769 166 $ 2,935 $ 19,996 $ - $ - 17,659 $ 17,659 $ - 1,980 88 $ 2,068 $ 15,591		Total
						$ - 29,042 $ 29,042 Total
						$ - 2,769 166 $ 2,935 $ 26,107 $ - $ - 22,256 $ 22,256 $ - 1,980 88 $ 2,068 $ 20,188

The Company rents parking spaces on an operating lease for a period of 1 year. All operating lease contracts contain a clause whereby the lessee adjusts the rent

according to market rent conditions when exercising the right to renew the lease. The lessee does not have a preferential right to take over the asset at the end of the lease period.

The total amount of lease benefits to be received in the future for operating leases of

own real estate, plant and equipment is as follows:

The first year	March 31, 2023 $ -	December 31, 2022 $ -	March 31, 2022	March 31, 2022
				$ 657

Depreciation costs are calculated on a straight-line basis for the following service life:

Buildings and structures R&D equipment Furniture and fixtures Die equipment Improvements on leased property Photo-mask	Used by the Company itself 10 ~ 50 years 3 ~ 6 years 4 ~ 9 years 3 years 2 ~ 6 years 2 ~ 3 years	Assets leased under	Assets leased under
			operating leases 50 years

XIII. Lease Agreement (I) Right-of-use assets:

ase Agreement t-of-use assets:
Carrying amount of right-of-use assets Buildings	March 31, 2023 $ 16,594	December 31, 2022 $ 19,712	March 31, 2022
				$ 32,316

For the Three Months Ended March 31

Additions to right-of-use asset Depreciation expense of right-of-use assets Buildings		2023 $ - $ 3,144		2022
				$ 7,684 $ 3,661

Besides the additions and depreciation disclosed above, there was no significant sublease transactions and indication of impairment for the three months ended March 31, 2023 and 2022.

(II) Lease liability

March 31, 2023 December 31, 2022 March 31, 2022

Carrying amount of lease liabilities Current Non-Current	$ 11,487 $ 5,195	$ 12,415 $ 7,568	$ 14,723
			$ 17,794

The discount rate for lease liabilities ranges as follows:

Buildings	March 31, 2023 1.96%~2.10%	December 31, 2022 1.96%~2.10%	March 31, 2022
			1.96%~2.10%

(III) Major leasing activities and terms

The Company has leased several buildings for office use for 2~4 years. At the end of the lease term, the Company has no preferential right to purchase the leased land and buildings and agrees that the Company shall not sublease or transfer all or part of the leased property without the prior consent of the Lessor.

(IV) Other Lease Information

For the Three Months Ended March 31

( Specialized Technology	2023		2022
	$ 399 $ 5 $ 3,828) Right of Patent $ 8,383 - - $ 8,383 $ 3,425 208 - $ 3,633 $ 4,750 $ 4,958	$	497 6 4,307) Total
		$
		$

$ 27,972 5,461 - $ 33,433 $ 26,984 1,818 - $ 28,802 $ 4,631 $ 988			$ 139,439 5,461 1 $ 144,901 $ 125,610 2,830 1 $ 128,441 $ 16,460 $ 13,829

Cost Balance as of January 1, 2022 Increase Current reclassification Conversion adjustment Balance as of March 31, 2022 Cumulative amortization Balance as of January 1, 2022 Increase Conversion adjustment Balance as of March 31, 2022 Net amount on March 31, 2022	$ 92,624 128 1 $ 92,753 $ 90,451 454 1 $ 90,906 $ 1,847	$ 17,993 9,979 - $ 27,972 $ 16,459 2,711 - $ 19,170 $ 8,802	$ 8,383 - - $ 8,383 $ 2,586 209 - $ 2,795 $ 5,588	$ 2,922 - - $ 2,922 $ 2,922 - - $ 2,922 $ -	$ 121,922 10,107 1
					$ 132,030
					$ 112,418 3,374 1
					$ 115,793
					$ 16,237

The above-mentioned intangible assets with limited durable life shall be amortized on a straight-line basis based on the following years of durability:

computer software 3~6 years Specialized technology 5 years Right of patent 10 years Other 3 ~ 5 years

XV. Other Assets

XVI.	Current Refundable deposit Tax retained Advances on sales Provisional payment Tax rebate receivable Other Non-Current Prepayment for equipment Refundable deposit Other Current Liabilities Bonuses payable Unpaid leave benefits payable Premium payable Labor expenses payable Payable for equipment	March 31, 2023 $ 15,000 6,020 4,934 1,783 - 9,273 $ 37,010 March 31, 2023 $ 7,057 3,777 $ 10,834 March 31, 2023 $ 14,152 8,956 4,193 3,387 -	December 31, 2022 $ 15,000 3,322 4,107 2,709 4,726 6,543 $ 36,407 December 31, 2022 $ 5,099 3,772 $ 8,871 December 31, 2022 $ 53,428 10,145 4,284 3,505 3,282	March 31, 2022
				$ - 6,934 24,670 4,276 1,496 7,578 $ 44,954 March 31, 2022
				$ 16,184 4,327 $ 20,511 March 31, 2022
				$ 27,407 9,708 3,949 3,416 2,323

Other	22,600 $ 53,288	22,875 $ 97,519	12,826 $ 59,629

XVII. Post-Retirement Welfare Plan

(I) Identified allocation plan

The Company's applicable pension program under the Workers' Pensions Ordinance is a defined-contribution retirement scheme administered by the government, which contributes 6% of an employee's monthly salary to the individual account of the Workers' Insurance Bureau. In addition, the basic pension premium paid by LEADTREND SHENZHEN under the government management fund program shall be recognized as the current annual expense at the time of provision. Subject to the above relevant provisions, the amounts recognized as expenses in the consolidated income statement of the Company were $2,802 and $2,650 thousand for the three months ended March 31, 2023 and 2022, respectively.

(II) Identified welfare plans

The Company's pension system in accordance with Labor Standards Law is a defined benefit retirement plan administered by the government. Payment of employee's pension is calculated on the basis of the service duration and the average salary of the 6 months prior to approved retirement. The Company shall allocate 2% of the total monthly salary to the employee's pension, which shall be deposited into a special account of the Bank of Taiwan by the Labor Retirement Reserve Supervision Committee in the name of the committee. Before the end of the year, if the estimated balance of the special account is not enough to pay the employees who are expected to reach the retirement conditions within the next year, the difference will be allocated in a lump sum before the end of March of the next year. This special account is entrusted by the Labor Fund Management Bureau of the Ministry of Labor, and the Company has no right to affect the investment management strategy.

For the three months ended March 31, 2023 and 2022, the pension expenses of defined benefit plans were both $130 thousand, and these were calculated based on the pension cost rate determined by the actuarial calculation on December 31, 2022 and 2021, respectively.

XVIII. Equity (I)Capital stock

Equity tal stock
Common stock Rated number of shares (thousands) Authorized stock Number of shares issued and fully paid up	March 31, 2023 200,000 $ 2,000,000 56,852	December 31, 2022 200,000 $ 2,000,000 56,883	March 31, 2022
				72,000 $ 720,000 52,864

(thousands) Issued share capital $ 568,528 $ 568,838 $ 528,646

For each share of the common stock of the Company, with a face value of $10 per share, the holder is entitled to one vote and the right to receive dividends.

The capital stock reserved for the issuance of employee stock warrants out of the rated capital stock is 7,800,000 shares.

(II) Capital reserves

March 31, 2023 December 31, 2022 March 31, 2022

Used to cover losses, release cash or allocate capital stock(1) Share premium (including exercised or lapsed employee stock options) Donations received from shareholders (2) Used only to cover losses Other Not used for any purpose Stocks with restricted employee's option	$ 258,027 84,732 125 45,667 $ 388,551	$ 258,027 84,732 106 47,567 $ 390,432	$ 273,131 84,732 106 51,708 $ 409,677

Such capital reserves may be used to cover losses or, if the company has no losses, to issue cash or to make up capital stock, subject to a certain percentage of the paid-in capital stock each year.
Donations in cash from Delaware Asia Pacific Investment Company.

(III) Retained earnings and dividend policy

In accordance with the earnings distribution policy of the Articles of Association of the Company, if there is any net profit after tax in the current period in the general accounts of each year, it shall be distributed in the following order:

To cover accumulated losses (including adjustment of unallocated surplus amount).
To provision 10% of the statutory surplus reserve, unless such surplus reserves have reached the amount of the Company's paid-in capital.
To provision or reverse special surplus reserves as required by law or the regulatory authority.
Any other surpluses, together with undistributed surplus at the beginning of the period (including adjusted amount of undistributed surplus), shall be subject to a resolution on distribution proposed by the board of directors, or be proposed

to the board of shareholders for resolution on distribution if it is distributed by issuing new shares.

The Company shall distribute all or part of dividends and dividends or statutory surplus reserves and capital reserves, in the form of cash, by authorizing the Board of Directors to report to the shareholders' meeting with the consent of more than two-thirds of the directors present and more than half of the directors present.

For the remuneration allocation policy in the Articles of Association of the Company, refer to Note 20 (7) Remuneration of employees and directors.

The distribution of dividends of the Company shall be based on the current year's earnings. As per the principle of dividend stability, the distribution ratio shall not be less than 30% of the current year's after-tax earnings, and the annual cash dividend shall not be less than 10% of the total cash and stock dividends of the current year.

The statutory surplus reserve shall be withdrawn till the balance reaches the total amount of paid-in capital stock of the Company. Statutory surplus reserves may be used to cover losses. When the Company has no loss, the portion of the statutory surplus reserve exceeding 25% of the total pai-up capital stock can be distributed in cash in addition to increasing capital stock.

The Company's earnings distribution plans for 2022 and 2021 are as follows:

Statutory surplus reserves Cash dividends Stock dividends Cash dividend per share ($) Dividend per share ($)		2022 $ 15,491 $ 31,286 $ 17,065 $ 0.550 $ 0.300		2021
				$ 32,806 $ 147,868 $ 36,967 $ 2.800 $ 0.700

In addition, on May 2, 2023, the board of directors of the Company decided to distribute cash dividends of $19,909,000 ($0.350 per share) from the capital reserves of 2022. Besides the cash dividend, the remaining surplus distribution items were also decided at the regular meeting of shareholders on June 13, 2023.

On April 29, 2022, the board of directors of the Company decided to distribute cash dividends of $26,405,000 ($0.500 per share) from the capital reserves of 2021. Besides the cash dividend, the remaining surplus distribution items were also decided at the regular meeting of shareholders on June 9, 2022.

(IV) Other rights and interests

Exchange difference in conversion of financial statements by foreign operating institutions

institutions
Balance at Beginning of the Year Current year Difference in conversion of foreign operators	For	the Three Months Ended March 31
		2023 $ 5,602 1,330	2022
			$ 1,867 9,214

in current year Other comprehensive gains and losses in current year Balance at end of the year	1,330 $ 6,932	9,214 $ 11,081

The relevant exchange difference resulting from the conversion of the net assets of the foreign operators from its functional currency to the Company's expressed currency (i.e., New Taiwan dollar) is the exchange difference directly recognized as the conversion of the financial statements of the foreign operating institution under other comprehensive income and loss items. The previously accumulated conversion difference in the financial statements of the foreign operators shall be reclassified to profit or loss when disposed of by the foreign operators.

Remuneration not gained by staff

The Board of Shareholders of the Company decided on June 9, 2022 and June 23, 2020 respectively to issue new shares with restricted employee option, as explained in Note 19.

For the Three Months Ended March 31

Balance at Beginning of the Year Recognized share-based payment Recovered and canceled in current year Balance at end of the year	2022 ( $ 31,945 ) 2,922 2,210 ($ 26,813)	2021
		( $ 42,573 ) 4,657 - ($ 37,916)

XIX. Share-based payment

Stocks with restricted employee's option

Information on the Company's issued new shares with restricted employee option is given below:

below:
Date of being adopted by the board of shareholders	Expected number of shares issued (thousand shares) 1,200 1,200 420	board Offered shares decided by BOD (thousand shares) 900 300 420	Date of Offering 109.09.11 110.08.03 111.10.07	Base date of capital increase 109.11.06 110.08.03 111.10.12	Actual number of shares issued (thousand shares) 900 300 420	Date of Offering Fair Value
2020.06.23 2020.06.23 2022.06.09						34.35 122 47.1

On June 23, 2020, the Board of Shareholders of the Company decided to issue new shares with restricted employee option totaling $12,000,000 in 12,000,000 shares, as stated below.

Any employee who is granted new shares with limited rights, if he/she is selected as "Approved" or above in his/her latest personal performance evaluation before the

granting date, and is still employed by the Company at the end of the granting period as	granting date, and is still employed by the Company at the end of the granting period as
stated below, will be granted new shares based on the schedule and accrual ratio below:
G r a n t i n g p e r i o d	G r a n t i ngr a t i o
Granting date ~ October 15 of the	One sixth
following first year
Granting date ~ April 15 of the	One sixth
following second year
Granting date ~ October 15 of the	One sixth
following second year
Granting date ~ April 15 of the	One sixth
following third year
Granting date ~ April 15 of the	One sixth
following third year
Granting date ~ April 15 of the	One sixth
following fourth year

Treatment if employee fails to meet the conditions for granting:

(I) In case that any employee resigns voluntarily, is dismissed, demobilized, retires, dies generally, leaves without pay, or moves to any related enterprise during the period from the date of granting till the expiration of the granting period, any shares that are granted to but not yet obtained by him/her will be recovered by the Company without compensation.

(II) Any shares that was approved to be granted to any employee who fails to achieve his/her latest personal performance before the granting date will be recovered by the Company without compensation.

(III) Any shares and related dividends approved for granting before the expiry of the granting period will be granted to related employee free of charge.

(IV) If any employee , before meeting the conditions for granting, terminates or revokes the agency authorization to the Company in breach of the provision that "during the period of delivering the new shares with restricted employee option to any trust, the Company shall (including but not limited to) negotiate, sign, amend, extend, rescind and terminate any relevant trust contract with the stock trust agency and instruct the delivery, use and disposal of the trusted property fully on behalf of the employee", the Company shall recover the shares from the employee without compensation.

Any new shares with restricted employee option which the Company has recovered without compensation will be canceled by the Company.

The granting of the aforesaid stock option plan is summarized as follows:

For the Three Months Ended March 31,2023 Outstanding at the beginning of the year Recovered in current year Outstanding at the end of the year Weighted average fair value given ($) For the Three Months Ended March 31,2022 Outstanding at the beginning of the year Recovered in current year Outstanding at the end of the year Weighted average fair value given ($)	2020 - 1-year new shares with restricted employee option Unit(1,000) 424.5 ( 15.0) 409.5 $ 34.35 740.0 ( 12.5) 727.5 $ 34.35	109 - 2-year new shares with restricted employee option	109 - 2-year new shares with restricted employee option
		Unit(1,000)
	( (	( (	192.5 17.5) 175.0 $ 122 291.0 33.0) 258.0 $ 122

In addition, on June 9, 2022, the Board of Shareholders of the Company decided to issue new stock with restricted employee option totaling $ 4,200,000 in 4,200,000 shares, as stated below.

Any employee who is granted new shares with limited rights, if he/she is selected as "Approved" or above in his/her latest personal performance evaluation before the granting date, and is still employed by the Company at the end of the granting period as stated below, will be granted new shares based on the schedule and accrual ratio below:

ted below, will be granted new shares based on the schedule and	accrual ratio below:
Granting period Granting date ~ October 11 of the following first year Granting date ~ April 11 of the following second year Granting date ~ October 11 of the following second year Granting date ~ April 11 of the following third year Granting date ~ October 11 of the following third year Granting date ~ April 11 of the following fourth year	Granting ratio
	One sixth One sixth One sixth One sixth One sixth One sixth

Treatment if employee fails to meet the conditions for granting:

(III) Any shares and related dividends approved for granting before the expiry of the granting period will be granted to related employee free of charge.

(IV) If any employee , before meeting the conditions for granting, terminates or revokes the agency authorization to the Company in breach of the provision that "during the period of delivering the new shares with restricted employee option to any trust, the Company shall (including but not limited to) negotiate, sign, amend, extend, rescind and terminate any relevant trust contract with the stock trust agency and instruct the delivery, use and disposal of the trusted property fully on behalf of the employee", the Company shall recover the shares from the employee without compensation.

Any new shares with restricted employee option which the Company has recovered without compensation will be canceled by the Company.

The granting of the aforesaid stock option plan is summarized as follows:

For the Three Months Ended March 31,2023 Outstanding at the beginning of the year Recovered in current year Outstanding at the end of the year Weighted average fair value given ($)	2022	- new shares with restricted employee option
		Unit(1,000)
		420.0 (21.0) 399.0 $ 47.1

The compensation costs for the new shares with restricted option as recognized for the three months ended March 31 of 2023 and 2022 are $2,922,000 and $4,657,000 respectively.

XX. Operating Revenue

.Operating Revenue
Revenue from customer contracts integrated circuit (I) Contractual balance	For the Three Months Ended March 31 2023 2022
		2023
		$215,946	$548,702

March 31, 2023 December 31,2022 March 31, 2022 January 31, 2022

Revenue from customer contracts integrated circuit （ Note 8 ） $ 141,179 $ 169,644 $ 300,101 $ 322,377

(II) Breakdown of customer contract revenue

Differential subdivision by district

kdown of customer contract revenue Differential subdivision by district
Mainland China Taiwan (where the Company is located) Korea Other countries	For the Three Months Ended March 31 2023 2022 $106,699 $ 249,590 105,458 294,753 398 1,461 3,391 2,898 $215,946 $ 548,702
		2023 $106,699 105,458 398 3,391 $215,946
			$ 249,590 294,753 1,461 2,898 $ 548,702

XX. Net Profit of Business Units

(I) Interest incomes

ofit of Business Units rest incomes
Interest incomes Bank deposit Commercial note Interest on deposit With repurchase of bonds	For the Three Months Ended March 31 2023 2022 $ 489 $ 855 15 11 10 9 - 13 $ 514 $ 888
	2023 $ 489 15 10 - $ 514
		$ 855 11 9 13 $ 888

(II) Other incomes

r incomes
Rental income Other business leases Other er interests and losses		For the Three Months Ended March 31 2023 2022 $ 615 533 $1,148 $ 500 - $ 500 For the Three Months Ended March 31 2023 2022

(III) Other interests and losses

Profit and loss on financial assets Gains on financial assets measured at fair value through profit and loss $ 331 $ 578 Net gain (loss) on foreign ( 834 ) 15,533

currency exchange Other	564 $ 61	3,171 $ 19,282

(IV) Financial cost

(IV) Financial cost
Interest on lease liabilities (V) Depreciation and amortization Summary of depreciation costs by function Operating costs Operating Expenses Summary of amortized expenses by function Operating costs Operating Expenses (VI) Employee benefit expenses Post-retirement benefits (Note 17) Identified allocation plan Identified benefit plan Share-based payment (Note 19) Delivery of equity Other employee benefits Total employee benefit expenses Summary by function Operating costs Operating Expenses	For the Three Months Ended			March 31 2022

			$	166 March 31 2022

				$ 7,242 14,040 $ 21,282 $ 52 3,322 $ 3,374 March 31 2022
		2023 $ 2,802 130 2,932 2,922 65,980 $ 71,834 $ 12,188 59,646 $ 71,834
				$ 2,650 130 2,780 4,657 114,151 $ 121,588 $ 20,299 101,289 $ 121,588

(VII) Remuneration of employees and directors

In accordance with the Articles of Association, the Company shall set aside no less than 5% and no more than 2% of the pre-tax profit of the current period before deducting the remuneration of employees and directors respectively. The pre-tax net

profit is net loss for the period from January 1 to March 31 of 2023, so employee compensation and directors' compensation are not assessed. The estimated employee remuneration and directors' remuneration for the period from 1 January to 31 March 2022 are as follows:

Estimated recognized proportion

Estimated recognized proportion
Employee remuneration Director's remuneration Amount Employee remuneration Director's remuneration	For the Three Months Ended March 31 2023 2022 - 16% - 1% For the Three Months Ended March 31 2023 2022 - $ 21,986 - 1,592

	2023 - -
		$ 21,986 1,592

If there is still any change in the amount after issuance of annual consolidated financial statements, it will be handled according to the change in accounting estimates and adjusted and recorded in the next year.

The annual employee remuneration and directors' remuneration for 2022 and 2021 were resolved by the Board on March 16, 2023 and March 17, 2022 respectively as follows:

Amount

Amount
Employee remuneration Director's remuneration	2022 Cash Share $ 32,060 $ - 2,581 -	2021
	Cash $ 32,060 2,581	Cash $ 73,880 4,441	Share
			$ - -

There is no difference between the actual amounts allocated for employee remuneration in 2022 and 2021 and the amounts recognized in the annual financial statements of 2022 and 2021.

For information on employee compensation and director compensation as determined by the Board of Directors of the Company, please visit the "Open Information Observatory" of the Taiwan Stock Exchange.

(VIII) Gains/losses in foreign currency exchange

ains/losses in foreign currency exchange
Total foreign exchange benefits	For the Three Months Ended March 31 2023 2022 $ 2,020 $ 17,820
	2023 $ 2,020
		$ 17,820

Total loss on foreign currency exchange ( Net (loss) profit (	2,854) ( $ 834)	2,287) $ 15,533

XXII. Income Tax

(I) Income tax recognized in profit and loss

The main components of income tax expense are listed below:

XXII.Income Tax (I) Income tax recognized in profit and loss The main components of income tax expense	se	are listed below:	are listed below:	are listed below:
Current income tax Incurred in current year ( $ Deferred income tax Incurred in current year Income tax expense recognized as profit and loss $		For the Three Months Ended March 31 2023 2022 169 ) $ 21,395 169 ( 1,478) - $ 19,917
		2023 169 ) 169 -
			(	$ 21,395 1,478) $ 19,917
	$

(II) Approval of income tax

The Company's profit-seeking business income tax declaration cases as of 2020 have been approved by the tax authority.

XXII. Earnings (Loss) per share

Unit: $ per share

been approved by the tax authority. Earnings (Loss) per share			Unit: $ per share	Unit: $ per share
Basic (Loss) earnings per share Diluted (Loss) earnings per share			For the Three Months Ended March 31 2023 2022 0.30) $ 1.69 0.30) $ 1.65
			2023 0.30) 0.30)
	( (	$		$ 1.69 $ 1.65
		$

In calculating earnings per share, the impact of allotment of shares without compensation has been retroactively adjusted and the base date for the allotment on August 6, 2022. Due to retroactive adjustment, the changes in basic and diluted earnings per share for the period from January 1 to March 31 of 2023 are as follows:

Basic earnings per share Diluted earnings per share		Unit: $ per share Before retroactive adjustment After retroactive adjustment For the Three Months Ended March 31 2023 2023 $ 1.81 $ 1.69 $ 1.77 $ 1.65	Unit: $ per share Before retroactive adjustment After retroactive adjustment For the Three Months Ended March 31 2023 2023 $ 1.81 $ 1.69 $ 1.77 $ 1.65	Unit: $ per share Before retroactive adjustment After retroactive adjustment For the Three Months Ended March 31 2023 2023 $ 1.81 $ 1.69 $ 1.77 $ 1.65

				2023
				$ 1.81 $ 1.77

The net (Loss) profit and weighted average shares of common stock used to calculate (Loss) earnings per share are as follows:

Net (Loss) profit for the year

Net (Loss) profit used to calculate basic and diluted (Loss) earnings per share Number of shares The weighted average number of common shares used to calculate basic (Loss) earnings per share Impact of dilutive potential common stock: Stocks with restricted employee's option Employee remuneration The weighted average number of common shares used to calculate diluted (Loss) earnings per share		For the Three Months Ended March 31 2023 2022 ($ 16,737) $ 93,957 Unit: Thousand shares For the Three Months Ended March 31 2023 2022 55,847 55,454 - 792 - 688 55,847 56,934	For the Three Months Ended March 31 2023 2022 ($ 16,737) $ 93,957 Unit: Thousand shares For the Three Months Ended March 31 2023 2022 55,847 55,454 - 792 - 688 55,847 56,934	For the Three Months Ended March 31 2023 2022 ($ 16,737) $ 93,957 Unit: Thousand shares For the Three Months Ended March 31 2023 2022 55,847 55,454 - 792 - 688 55,847 56,934	For the Three Months Ended March 31 2023 2022 ($ 16,737) $ 93,957 Unit: Thousand shares For the Three Months Ended March 31 2023 2022 55,847 55,454 - 792 - 688 55,847 56,934


			2023 55,847 - - 55,847
					55,454 792 688 56,934

If the Company selects to pay employee remuneration in stock or cash, diluted earnings per share will be calculated on the assumption that employee compensation will be paid in stock and will be included in the weighted average number of outstanding shares to calculate dilutive earnings per share at the time when the potential common stock is dilutive. The dilution effect of such potential ordinary shares also continues to be taken into account in calculating diluted earnings per share prior to the determination of the number of shares to be paid to employees in the next year.

The Company is a loss from January 1 to March 31 of 2023, and if the impact of employee compensation and employee rights restricted stock is included, it will have a counter-dilution effect, calculated on the basis of excluding diluted earnings per share.

XXIII. Capital Risk Management

The Company manages its capital to ensure that it is able to maximize shareholders' returns as a going concern. There has been no significant change in the Company's overall strategy.

The capital structure of the Company consists of capital stock, capital reserves, retained earnings and other benefits.

The Company is not subject to other external capital requirements.

XXIV. Financial Instruments

(I) Fair value information - financial instruments not measured at fair value

The Company's management believes that the carrying amounts of financial assets and financial liabilities not measured at fair value are close to their fair values.

(II) Fair Value information - financial instruments measured at fair value on a recurring basis

1.Fair value hierarchy

ir value hierarchy
Mar 31, 2023 Financial assets measured at fair value through profit and loss Fund benefit certificate December 31, 2022 Financial assets measured at fair value through profit and loss Fund benefit certificate Mar 31, 2022 Financial assets measured at fair value through profit and loss Fund benefit certificate	Level 1 $ 78,410 Level 1 $ 55,634 Level 1 $ 123,801	Level 2 $ - Level 2 $ - Level 2 $ -	Level 3 $ - Level 3 $ - Level 3 $ -	Total
				$ 78,410 Total
				$ 55,634 Total
				$ 123,801

There was no transfer of fair value measurement between Class 1 and Class 2 in the period from January 1 to March 31 of 2023 and 2022.

(III) Classification of financial instruments

March 31, 2023 December 31, 2022 March 31, 2022

Financial Assets Measured at fair value through profit and loss Non-derivative financial

assets measured at fair value $ 78,410 $ 55,634 $ 123,801 Financial assets measured at cost after

amortization
Cash and Cash Equivalents	223,795	250,680	707,881
Notes and accounts
receivable	141,179	169,644	300,101
Refundable deposit	18,777	18,772	4,327
Financial liabilities
Measured at amortized
cost
Payable account	58,175	63,567	279,430
Deposits received	1,051	914	1,262

(IV) Purpose and policies of financial risk management

The Company's principal financial instruments include accounts receivable, refundable deposits, accounts payable and lease liabilities. The purpose of the Company's financial risk management is to control exchange rate risk, interest rate risk, credit risk and liquidity risk related to its operating activities. In order to reduce the related financial risks, the Company strives to identify, evaluate and avoid market uncertainties so as to reduce the potential adverse impact of market changes on the financial performance of the Company.

Important financial activities of the Company are reviewed by the Board of Directors in accordance with relevant regulations and internal control system. During the execution of the financial plan, the Company must comply with the relevant financial operating procedures regarding overall financial risk management and division of responsibilities.

1. Market risk

The main financial risks that the Company incurs from its operations are the risk of foreign exchange rate fluctuations (as stated under (1) below) and the risk of interest rate fluctuations (as stated under (2) below).

There has been no change in the Company's exposure to market risks in financial instruments and how it manages and measures such exposure.

(1) Exchange rate risk

Part of the Company's cash inflow and outflow is in foreign currency, so it has partly effect of naturally hedging. The Company manages exchange rate risks for the purpose of hedging, not for profit.

The exchange rate risk management strategy is to periodically review the net position of various currency assets and liabilities and to manage the risk at this net position.

Refer to Note 28 for the carrying amounts of the Company's monetary assets and monetary liabilities denominated in non-functional currencies as of the balance sheet date (including monetary items denominated in non-functional currencies that have been written off in the consolidated financial statements).

The net investment of the Company's foreign operators is strategic investment, so the Company does not hedge against it. Sensitivity analysis

The Company is mainly affected by fluctuations in the exchange rates of the US dollar and RMB.

The table below details the Company's sensitivity analysis when the exchange rates of the individual functional currencies increase or decrease by 5% against the relevant foreign currencies. The sensitivity analysis takes into consideration only the monetary items in foreign currency outstanding at the end of the period, and their conversion at the end of the period is adjusted for a change in exchange rate of 5%.The scope of sensitivity analysis includes cash and contingent cash, accounts receivable, other receivables, accounts payable and other amounts payable. The positive numbers in the table below represent the amount of before-tax net profit that would be reduced when the individual functional currency appreciates by 5% relative to all relevant currencies. When the individual functional currency depreciates by 5% relative to relevant foreign currencies, the impact on net pre-tax earnings will be negative of the same amount.

Influence of USD For the Three Months Ended March 31 2023 2022 $ 2,855 $ 10,017	Influence of RMB	Influence of RMB
	For the Three Months Ended March 31
2023 $ 2,855	2023 $ 2,722	2022
		$ 8,338

The impact is primarily due to the Company's US dollar and RMB denominated receivables and payables that are outstanding at the balance sheet date and are not protected against cash flows.

The Company's decreased sensitivity to the US dollar exchange rate during the year was mainly due to the decrease in US dollar net assets at the end of the period resulting from the decrease in the balance of cash and cash equivalents and accounts receivable denominated in US dollars.

The Company's decreased sensitivity to the RMB exchange rate during the year was mainly due to the decrease in RMB net assets at the end of the period resulting from the decrease in the balance of cash and cash equivalents denominated in RMB.

(2) Interest rate risk

Interest rate risk arises because affiliates of the Company hold both fixed and floating rate assets.

The book amounts of the Company's financial assets exposed to interest rate risk on the balance sheet date are as follows:

March 31, 2023 December 31, 2022 March 31, 2022

Interest rate risk in fair
value
- Financial assets	$	149,145 $	129,271	$	521,968
－Financial liabilities		16,682	19,983		32,517
Interest rate risk in
cash flow
- Financial assets		73,793	121,409		185,080

Sensitivity analysis

The following sensitivity analysis is based on the interest rate risk of non-derivative instruments at the balance sheet date. For floating rate assets, the analysis assumes that the amount of assets outstanding on the balance sheet date is outstanding during the reporting period.

If the interest rate increases/decreases by 0.1%, all other variables held constant, the Company's net profit before tax in the period from January 1 to March 31 of 2023 and 2022 will increase/decrease by $18 thousands and $46 thousands respectively, due to the interest rate risk of the Company's variable interest rate net assets.

2. Credit risk

Credit risk refers to the risk of financial loss to the Company caused by default of contractual obligations by the other trading party. As of the balance sheet date, the Company's greatest credit risk exposure to non-performance of obligations by the other trading party is primarily attributable to the carrying value of financial assets recognized in the consolidated balance sheet.

To mitigate credit risk, the management of the Company has appointed a dedicated team responsible for the determination of credit lines, credit approval and other monitoring procedures to ensure that appropriate actions are taken to collect overdue receivables. In addition, the Company reviews the recoverable amounts of receivables on a case-by-case basis at the balance sheet date to ensure that appropriate impairment losses have been included in unrecoverable receivables. Accordingly, the Company's management believes that the Company's credit risk has been significantly reduced.

Accounts receivable cover a large number of customers, dispersed in different industries and geographical regions. The Company continuously evaluates the financial position of its customers involving in accounts receivable.

Except for Customer A, Customer B, Customer C, Customer D and Customer E as described below, the Company does not have a material credit risk against any single trading party or any set of trading parties with similar characteristics. When the trading parties are related enterprises to each other, the Company defines them as the trading parties with similar characteristics.

As of March 31, 2023, with the exception of Customer A, Customer B, Customer C, Customer D and Customer E, the concentration of credit risk with respect to other trading parties did not exceed 5% of total accounts receivable. The credit risks with Customer A, Customer B, Customer C, Customer D and Customer E are limited, since they are highly reputable manufacturers. 3.Liquidity risk

The Company manages and maintains sufficient cash and cash equivalents to finance its operations and mitigate the impact of cash flow fluctuations. (1) Liquidity of non-derivative financial liabilities

The following table details the maturity analysis of the remaining non-derivative financial liabilities for which the Company has agreed repayment periods, based on the earliest date on which the Company may be required to repay and is prepared in terms of un-discounted cash flows of financial liabilities, including cash flows of interest and principal.

March 31, 2023

March 31, 2023
Payable account lease liabilities Other current liabilities	Immediate payment or less than 1 month $ 18,673 $ 1,081 $ 12,048		1 ~ 3 months $ 39,502 $ 2,123 $ 5,345	3 months Up to 1 year $ - $ 8,617 $ -		1 ~ 5 years $ - $ 5,283 $ -		Total
								$ 58,175 $ 17,104 $ 17,393

Further information on the maturity analysis of the above financial liabilities is as follows:

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December 31, 2022

December 31,	2022	2022
Payable account lease liabilities Other current liabilities	Immediate payment or less than 1 month			1 ~ 3 months	3 months Up to 1 year			1 ~ 5 years		Total
		$ 21,875 $ 1,079 $ 15,571		$ 41,692 $ 2,158 $ 9,235		$ - $ 9,440 $ -		$ - $ 7,644 $ -		$ 63,567 $ 20,321 $ 24,806

Further information on the maturity analysis of the above financial liabilities is as follows:

Less than 1

==> picture [347 x 30] intentionally omitted <==

March 31, 2022

Payable account lease liabilities Other current liabilities		Immediate payment or less than 1 month $ 135,140 $ 1,268 $ 11,782		1 ~ 3 months $ 144,290 $ 3,197 $ 6,810	3 months Up to 1 year $ - $ 11,453 $ -		1 ~ 5 years $ - $ 18,034 $ -		Total
									$ 279,430 $ 33,952 $ 18,592

Further information on the maturity analysis of the above financial liabilities is as follows:

Less than 1 year 1 ～ 5 years > 5 years - lease liabilities $ 15,918 $ 18,034 $

XXVI. Transactions with Related Parties

(I) All transactions between the Company and its subsidiaries, account balances, gains and losses have been wiped out at the time of consolidation and are not disclosed in this note. The Company has no dealings with any other affiliated party.

(II) Remuneration of major management officers

For the Three Months Ended March 31

Short-term employee benefits Post-retirement benefits Share-based payment		2023 $ 7,266 254 736 $ 8,256		2022
				$ 5,752 518 877 $ 7,147

The remuneration of directors and other key officer is determined by the Remuneration Committee in accordance with individual performance and market trends.

XXVII. Major Contingent Liabilities and Unrecognized Contractual Commitments

The Company's material commitments on the balance sheet date are as follows:

(I) Major commitments

The Company signed a patented technology transfer agreement with a company in March 2018, and the transfer consideration was paid in three phases. The total amount of the first and second contractual amounts was US $600,000, and the third-phase was paid based on the profits of the patented derivative products within three years after the offering date, amounting at least US $300,000.

XXVIII. Information on Foreign Currency Assets and Liabilities with Significant Impact

The following information is summarized in terms of foreign currencies other than the Company's individual functional currency. The exchange rate disclosed refers to the exchange rate at which such foreign currencies are converted to functional currency. Foreign currency assets and liabilities with significant impact are listed below:

March 31, 2023 Unit:1,000 in each foreign currency

March 31, 2023Unit:1,000 in each foreign currency	March 31, 2023Unit:1,000 in each foreign currency
Foreign currency exchange rate Foreign currency assets Monetary items USD $ 2,780 30.450 (USD: TWD) USD 17 6.872 (USD: RMB) RMB 12,287 4.431 (RMB:TWD) Foreign currency liabilities Monetary items USD 923 30.450 (USD:TWD) December 31, 2022Unit:1,000 in each foreign currency Foreign currency exchange rate Foreign currency assets Monetary items USD $ 4,748 30.71 0 (USD: TWD) USD 17 6.967 (USD: RMB) RMB 318 4.408 (RMB:TWD) Foreign currency liabilities Monetary items USD 1,356 30.710 (USD:TWD) March 31, 2022Unit:1,000 in each foreign currency Foreign currency exchange rate Foreign currency assets Monetary items USD $ 11,656 28.625 (USD:TWD) USD 17 6.353 (USD:RMB） RMB 37,009 4.506 (RMB:TWD) Foreign currency liabilities Monetary items USD 4,674 28.625 (USD:TWD)		carrying amount $ 84,651 555 54,443 $ 139,649 $ 28,108 carrying amount $ 145,819 536 1,404 $ 147,759 $ 41,629 carrying amount $ 333,648 500 166,764 $ 500,912 $ 133,800

	28.625 (USD:TWD) 6.353 (USD:RMB） 4.506 (RMB:TWD) 28.625 (USD:TWD)		$ 333,648 500 166,764 $ 500,912 $ 133,800

The total realized and unrealized net gain (loss) on foreign currency exchange of the Company for 2022 and 2021 were ($834) thousands and $15,533 thousands respectively. Due to the wide variety of individual foreign currencies used in transactions by the affiliates of the Group, it is not possible to disclose exchange gains and losses by foreign currency with significant impact.

XXIX. Matters Disclosed in Notes

(I) Major transactions and (II) Related information on reinvested business: At the time of preparation of these consolidated financial statements, all significant transactions between the parent and subsidiaries and their balances have been wiped out.

==> picture [555 x 191] intentionally omitted <==

----- Start of picture text -----

1. Loans to others:
Provisio
Collateral
Need
n for
security Loans and Total
for
Largest balance in Balance at Business allowan
Actually Interest Nature of limits for Limit for
No. Dealings Related person current period End of contact short-te ces
Lender Borrower Paid Rate Remark
Loan individual Loan
or not rm
Balance Period Amount
Amount Intervals Amount Name Value
financi s (Note) (Note)
of bad
ng
debts
0 LEADTREND LEADTREND Other Yes $ 300,000 $ 300,000 $ - - business $ 397,335 － $ - － $ - $ 397,335 $ 656,194 －
TECHNOLOG TECHNOLOGY receivables - contact
Y CO. LTD. (SHENZHEN) CO. related parties
LTD.
----- End of picture text -----

Note: The loan limit for individuals shall not exceed 10% of the current net value of the lender, and the total loan limit shall not exceed 40% of the current net value of the lender. For a company that has business dealings with the Company, individual loans and amounts shall not exceed the amount of business transactions between the two parties, and the total loans and amounts of the Company shall not exceed 40 percent of the net value of the Company.

Endorse for another: none.
Securities holdings at the end of the period:

Holder	Class of Marketable Securities	Names of securities	Relationship with Securities Issuer	Presented Items		End of the	Period		Remark
					Number of shares or Unit	Carrying amount	Sharehol ding Ratio％	Planned Assets
LEADTREND SHENZHEN	Fund	Fund B on Mainland China Resources Yuanta Cash Connect Money Market	－	Financial assets measured at fair value through profit and loss - Flows	-	$ 78,410	-	$ 78,410	Note 1

Note 1: Based on net value as at March 31, 2022.

Note 2: No security, pledged loans or other agreed restriction for use of the securities as listed above has been offered as of March 31, 2022.

Cumulative purchase or sale of the same securities amounting to NT $300 million or more than 20% of the paid-in capital: none.
Real estate acquired amounting NT $300 million or more than 20% of the paid-in capital: none.
Immovable property disposed amounting NT $300 million or more than 20% of the paid-in capital: none.
Sales to/from related parties amounting NT $100 million or more than 20% of the paid-in capital: NA

8.Amounts receivable from related parties amounting to NT $100 million or more than 20% of the paid-in capital: none.

9. Trading involving derivatives: none.

Others: Information and amount of business relations and important transactions between the parent company and subsidiaries:

For the Three Months Ended March 31 of 2023

No. 0 LEA C 0 LEA C	Name of Trader DTREND TECHNOLOGY O. LTD. DTREND TECHNOLOGY O. LTD.	Trading Party LEADTREND TECHNOLOGY (SHENZHEN) CO. LTD. LEADTREND TECHNOLOGY (SHENZHEN) CO. LTD.	Relationship (Note 2)		Transaction	Information
				Item Sales revenue Accounts Receivable - related parties	Amount $ 63,841 53,127	Trading Condition	Ratio to total revenues or total assets
			1 1			Note 3 Note 3	30% 3%

Note 1: The amount of transactions with parent company is 0. Subsidiaries are numbered in sequence starting with the number 1.

Note 2: There is no appropriate object comparable with the sales price between subsidiaries, and the

collection period with the subsidiary is comparable to that with ordinary customers.

Note 3: Material transactions in this table may be listed at the discretion of the Company based on the

principle of materiality.

11.Information on company invested in:

									Unit: TWD / USD $1,	000
Invested Company Name	Jurisdiction	Main business items	Original investment amount		Ending holdings			Invested Company Income/loss for the period	Profit/loss on investment recognized in current period	Remark
			End of current period	End of previous period	Number of Holdings (Shares)	Ratio (%)	carrying amount
Leadtrend Technology (Samoa) Limited	Samoa	Investment business	USD 768	USD 768	768,000	100	$ 3,39	4 $ 12	$ 12	Subsidiary

Note: It is calculated based on the financial statements verified by accountants of the invested company during the same period.

(III) Information on investments in Mainland China:

The Company has no other matters to be disclosed except the following:

With respect to the invested company in Mainland China, the name, main business items, paid-in capital, investment method, outward and inward remittance of funds, shareholding ratio, investment profit and loss, closing book amount of investment, repatriated investment profit and loss and investment quota in Mainland China:

									U	nit: TWD / U	SD $1,000
Name of Invested Company in Mainland Name of Entity	Primary Business Item	Paid-in capital	Means of Investment	Starting amount of accumulated investment from Taiwan	Amo investmen or recover the curre	unt of t remitted ed during nt period	Ending amount of accumulated investment from Taiwan	Current profit and loss of the invested company	Propor tion of direct or indirec t holdin gs of the Comp any	Profit/loss on investment recognized in current period (Note 2)	Ending investment Book Value (Note 2)	Income from investments collected as of end of current period
					Remitted	Recovery

==> picture [561 x 208] intentionally omitted <==

----- Start of picture text -----

LEADTREND Computer software design $ 301,455 註一 $ 214,673 $ - $ - $ 214,673 $ 5,122 100% $ 5,122 $ 205,424 $ -
TECHNOLOGY service, computer system ( USD 9,900 ) ( USD 7,050 ) ( USD - ( USD 7,050 ) ( USD 169 ) ( USD 169 ) ( USD 6,746 )
(SHENZHEN) CO. integration service,
LTD. wholesale of integrated
circuits and related
electronic products, and
agent import and export
business activities
Accumulated remittance from Taiwan at the end of the current period Amount of investment approved by the The limit of Investment in Mainland China at 60% of the net value as
Amount of investment in Mainland China Ministry of Economic Affairs per the regulations of the Ministry of Economic Affairs
$214,673 (USD7,050) $388,238 (USD12,750) $984,291
----- End of picture text -----

Note 1: The investment is made directly in companies in Mainland China.

Note 2: It is calculated based on the financial statements verified by accountants of the invested company during the same period.
Note 3:Relevant figures in this table involving foreign currency are converted to New Taiwan dollars at the exchange rate on the date of consolidated financial statements.
Note 4: On October 24, 2016, the Company was approved by the Investment Review Committee of the Ministry of Economic Affairs to invest USD 6 million, which would be invalidated if not accomplished within 3 years from the date of approval. In addition, on July 17, 2018, USD2,800,000 among the investment was changed subject to approval of the Investment Review Committee of the Ministry of Economic Affairs, which would be directly invested in LEADTREND TECHNOLOGY (SHENZHEN) CO. LTD. from the own capital of Leadtrend Technology (Samoa) Limited, an investor in third region. As of March 31, 2023, the Company and Leadtrend Technology (Samoa) Limited remitted investment amounting US $1 million and US $1.85 million respectively, and the remaining un-invested amount was invalidated.
Note 5: On December 12, 2019, USD8 million from the Company and USD1 million from the own capital of Leadtrend Technology (Samoa) were approved to invest directly in LEADTREND TECHNOLOGY (SHENZHEN) CO. LTD. by the Investment Review Committee of the Ministry of Economic Affairs. As of March 31, 2023, the Company and Leadtrend Technology (Samoa) Limited remitted investment amounting US $5.15 million and US $1 million respectively, and the remaining un-invested amount was invalidated.
Information on major transactions with invested companies in Mainland China directly or indirectly through a third-party, and related prices, terms of payment, unrealized gains and losses and any other information which may be helpful to understand the impact of investment in Mainland China on financial statements: Please refer to Section (I) 10. Others.
(IV) Information on Major Shareholders: Name, holdings and ratio of shareholders with more than 5% of total equity:

% of total equity:
Name of major shareholder	Shares
	Shares Held	Shareholding Ratio (%)
Jieneng Investment Co. Ltd.	4,644,186	8.16

XXX. Department Information

The Company's operating decision makers focus on and use product-specific information to allocate resources and evaluate department performance. Each product has similar economic characteristics and is marketed by a unified and centralized marketing approach, so the Company summaries and reports them in a single operating department. In addition, the department information provided by the Company to the operating decision makers for review is measured on the same basis as the consolidated financial statements. Therefore, for the department's revenue and operating results reported for the period from January 1 to March 31 of 2023 and 2022, refer to the consolidated income statement for the period from January 1 to March 31 of 2023 and 2022. For the department's assets to be reported as of March 31, 2023 and March 31, 2022, refer to the consolidated balance sheet as of March 31, 2023 and March 31, 2022 respectively.

AI assistant

LD — Interim / Quarterly Report 2023

52348_rns_2023-11-13_b7f9a7dd-fa23-4f35-8431-2dbbe19a398a.pdf

LEADTREND TECHNOLOGY CO. LTD. AND SUBSIDIARIES

REVIEW REPORT OF INDEPENDENT ACCOUNTANTS

Introduction

Scope of Review

Conclusion

LEADTREND TECHNOLOGY CO. LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

LEADTREND TECHNOLOGY CO. LTD. AND ITS SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share) (Reviewed, Not Audited)

LEADTREND TECHNOLOGY CO. LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

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

LEADTREND TECHNOLOGY CO. LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)

(Reviewed, Not Audited)

LEADTREND TECHNOLOGY CO. LTD. AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS THREE MONTHS ENDED MARCH 31, 2023 AND 2022 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise) (Reviewed, Not Audited)

I. History of Company

(II) IFRSs issued by IASB but not approved and issued by FSC

(I) Compliance statement

(II) Preparation basis

(III) Consolidation basis

(IV) Other significant accounting policies

V. Material Accounting Judgments and Key Sources of Estimation Uncertainty

VI. Cash and Cash Equivalents

VIII. Notes and Accounts Receivable

Aging analysis of net accounts receivable

IX. Inventory

XI. Subsidiary

(I) Subsidiaries incorporated into consolidated financial statements

Used by the Company itself

Assets leased under operating leases

(III) Major leasing activities and terms

(IV) Other Lease Information

XV. Other Assets

XVII. Post-Retirement Welfare Plan

(I) Identified allocation plan

(II) Identified welfare plans

(III) Retained earnings and dividend policy

(IV) Other rights and interests

XIX. Share-based payment

XX. Operating Revenue

(II) Breakdown of customer contract revenue

Differential subdivision by district

XX. Net Profit of Business Units

(III) Other interests and losses

(IV) Financial cost

(VII) Remuneration of employees and directors

Estimated recognized proportion

Amount

XXII. Income Tax

(I) Income tax recognized in profit and loss

(II) Approval of income tax

XXIII. Capital Risk Management

XXIV. Financial Instruments

(III) Classification of financial instruments

(IV) Purpose and policies of financial risk management

1. Market risk

(2) Interest rate risk

Sensitivity analysis

2. Credit risk

December 31, 2022

XXVI. Transactions with Related Parties

XXIX. Matters Disclosed in Notes

9. Trading involving derivatives: none.

For the Three Months Ended March 31 of 2023

11.Information on company invested in:

(III) Information on investments in Mainland China:

More from LD

LD Interim / Quarterly Report 2023