LD - Interim / Quarterly Report 2023

Stock Code: 3588

LEADTREND TECHNOLOGY CO. LTD. AND SUBSIDIARIES

Consolidated Financial Statements for the Nine Months Ended Sep 30, 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 Leadtrend Technology Inc. and its subsidiaries (collectively, the “Group”) as of September 30, 2023 and 2022, the related consolidated statements of comprehensive income for the three months ended September 30, 2023 and 2022 and for the nine months ended September 30, 2023 and 2022, the consolidated statements of changes in equity and cash flows for the nine 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 September 30, 2023 and 2022, its consolidated financial performance for the three months ended September 30, 2023 and 2022, and its consolidated

financial performance and its consolidated cash flows for the nine months ended September 30, 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 Yu-Feng Huang and Cai Meizhen.

Deloitte & Touche Taipei, Taiwan Republic of China

November 9, 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)

Code 1100 1110 1170 130X 1470 11XX 1600 1755 1780 1840 1990 15XX 1XXX 2170 2200 2216 2230 2280 2399 21XX 2570 2580 2640 2645 25XX 2XXX 3110 3210 3251 3273 3280 3310 3350 3410 3491 3XXX	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) Other current assets (Note 14) Total current assets Non-Current Assets Real estate, plant and equipment (Notes 11) Right-of-use assets (Note 12) Intangible assets (Note 13) Deferred income tax assets Other non-current assets (Note 14) Total non-current assets Total assets Liabilities andEquity Current liability Payable account Remuneration payable to staff and directors (Note 20) Dividends payable (Note 17) Current income tax liabilities (Note 4 and 21) Lease liabilities - current (Note 12) Other current liabilities (Note 15) Total current liabilities Non-current liability Deferred income tax liabilities Lease liabilities - non-current (Note 12) Net defined benefit liabilities - non-current (Notes 4 and 16) Deposits received Total non-current liabilities Total liabilities Equity (Notes 17 and 18) 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		September 30, 2023 Amount ％ $ 396,589 22 36,697 2 199,511 11 630,154 35 19,015 1 1,281,966 71 488,495 27 24,180 1 13,414 1 - - 7,005 - 533,094 29 $ 1,815,060 100 $ 63,745 3 24,192 1 14,551 1 12,341 1 78,954 4 193,783 10 421 - 12,106 1 - - 945 - 13,472 1 207,255 11 585,368 32 245,361 13 84,732 5 37,219 2 125 - 215,284 12 451,323 25 5,145 1 16,752) ( 1) 1,607,805 89 $ 1,815,060 100		December 31, 2022 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		September 30, 2022	September 30, 2022
			Amount $ 396,589 36,697 199,511 630,154 19,015 1,281,966 488,495 24,180 13,414 - 7,005 533,094 $ 1,815,060 $ 63,745 24,192 14,551 12,341 78,954 193,783 421 12,106 - 945 13,472 207,255 585,368 245,361 84,732 37,219 125 215,284 451,323 5,145 16,752) 1,607,805 $ 1,815,060		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 $ 294,699 20,518 186,863 866,282 46,973 1,415,335 526,569 22,935 13,563 - 13,054 576,121 $ 1,991,456 $ 132,495 65,609 21,388 12,533 84,430 316,455 329 10,661 7,619 950 19,559 336,014 564,888 250,270 84,732 41,139 106 199,793 526,102 9,558 21,146) 1,655,442 $ 1,991,456	％
		(		(		(		15 1 9 44 2 71 26 1 1 - 1 29 100 7 3 1 1 4 16 - 1 - - 1 17 28 13 4 2 - 10 27 - ( 1) 83 100

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)

(Reviewed, Not Audited)
Code Operating revenues (Note 19) 4110 Sales revenue 4170 Sales returns and allowances 4000 Net operating revenue Operating costs (Notes 9, 16 and 20) 5110 Cost of goods sold 5900 Operating margin Operating expenses (Notes 16 and 20) 6100 Amortization cost 6200 Management costs 6300 Research and development expenses 6000 Total operating expenses 6900 Net operating profit Non-operating income and expenditure (Note 20) 7100 Interest incomes 7010 Other Income 7020 Other interests and losses 7050 Financial Costs 7000 Total non-operating incomes and expenses 7900 Pre-tax net profit 7950 Income tax expense (Notes 4 and 21) 8200 Net profit for the year Other composite gains and losses 8360 Items that may be subsequently		Three Months Ended September 30 2023 2022 Amount `％` Amount $ 337,811 101 $ 332,427 4,590) ( 1) ( 15,887) 333,221 100 316,540 207,400 62 192,047 125,821 38 124,493 22,929 7 20,203 28,144 8 24,292 75,047 23 73,971 126,120 38 118,466 299) - 6,027 809 1 617 508 - 2,892 23,900 7 2,412 122) - ( 130) 25,095 8 5,791 24,796 8 11,818 - - 1,149 24,796 8 10,669			`％` 105 ( 5) 100 61 39 6 8 23 37 2 - 1 1 - 2 4 1 3
		Amount $ 337,811 4,590) 333,221 207,400 125,821 22,929 28,144 75,047 126,120 299) 809 508 23,900 122) 25,095 24,796 - 24,796		Amount $ 332,427 15,887) 316,540 192,047 124,493 20,203 24,292 73,971 118,466 6,027 617 2,892 2,412 130) 5,791 11,818 1,149 10,669
	( ( (		( (

reclassified as profit or loss:

8361 Exchange difference in conversion of financial statements by foreign operating institutions (Note 17) 8500 Total consolidated profit and loss for the year Earnings per share (Note 22) 9750 Basic 9850 Dilutive	7,343 2 $ 32,139 10 $ 0.43 $ 0.43	2,242 1 ( $ 12,911 4 ( $ 0.19 ( $ 0.18 (	457) - $ 5,523) ( 1) $ 0.09) $ 0.09)	7,691 1 $ 168,477 13 $ 2.81 $ 2.73

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)

Capital on issued common shares	Capital reserve Donations received from shareholders Restricted employee employee's option Other	Capital reserve Donations received from shareholders Restricted employee employee's option Other	Capital reserve Donations received from shareholders Restricted employee employee's option Other			Retained earnings	Total			Other equityitems Foreign operators Exchange difference in conversion of financial statements Remuneration no gained by staff	Other equityitems Foreign operators Exchange difference in conversion of financial statements Remuneration no gained by staff
Amount	Donations received from shareholders			$	Statutory surplus reserves	Undistributed earnings			$	Foreign operators Exchange difference in conversion of financial statements
52,864 - - 3,697 3,697 - - - - - - 73 ) ( - 56,488 56,883 - - 1,707 1,707 - - - - - - 53 ) ( - 58,537	$ 273,131 - - - - 26,405 ) - - - - 3,544 - - $ 250,270 $ 258,027 - - - - 19,909 ) - - - - 7,243 - - $ 245,361	$ 84,732 - - - - - - - - - - ( - - ( $ 84,732 $ 84,732 - - - - - - - - - - ( - - ( $ 84,732	$ 51,708 - - - - - - - - - 3,544 ) 725 7,750) $ 41,139 $ 47,567 - - - - - - - - - 7,243 ) 535 3,640) $ 37,219		98 - - - - - 8 - - - - - - 106 106 - - - - - 19 - - - - - - 125	$ 166,987 32,806 ( - ( - ( 32,806 ( - - - - - - - - $ 199,793 $ 199,793 15,491 ( - ( - ( 15,491 ( - - - ( - - ( - - - $ 215,284	$ 582,957 32,806 ) 147,868 ) 36,967) 217,641) - - 160,786 - 160,786 - - - $ 526,102 $ 520,231 15,491 ) 31,286 ) 17,065) 63,842) - - 5,066 ) - 5,066) - - - $ 451,323	( ( ( ( ( ( ( (		749,944 - 147,868 ) 36,967) 184,835) - - 160,786 - 160,786 - - - 725,895 720,024 - 31,286 ) 17,065) 48,351) - - 5,066 ) - ( 5,066) ( - - - 666,607	$ 1,867 ( - - - - - - - 7,691 7,691 - - - $ 9,558 ( $ 5,602 ( - - - - - - - 457) 457) - - - $ 5,145 (




				$					$
				$					$




				$					$

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 A22500 Disposal and scrapping of immovable property, plant and equipment (profit). A29900 Loss from lease modification A24100 Net loss/gain 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	NineMonthsEnded September30
	2023 ( $ 5,066 ) 66,540 7,936 ( 838 ) 342 ( 2,162 ) 11,553 ( 1,843 ) - ( 919 ) ( 26,656 ) 177,850 2,493 ( 983 ) ( 13,316 ) ( 15,288 ) ( 4,840) 194,803 ( 342 ) ( 57) 194,404	2022
		$ 204,742 66,777 9,748 ( 1,078 ) 451 ( 2,897 ) 13,677 151 ( 20 ) ( 7,201 ) 140,215 ( 408,061 ) ( 23,721 ) ( 126,596 ) ( 12,712 ) ( 6,165 ) ( 2,075) ( 154,765 ) ( 451 ) ( 81,403) ( 236,619)

	Cash flow from investment activities
B00100	Acquisition of financial assets measured
	at fair value through profit and loss	(		57,395 )	(		22,365 )
B00200	Dispose of financial assets measured at
	fair value through profit and loss			77,263			116,298
B02700	Acquisition of real estate, plant and
	equipment	(		25,772 )	(		109,301 )
B02800	Disposition of the price of real estate,
	plant and equipment		$	10,395		$	-
B03700	Decrease in deposit margin			15,262			441
B04500	Acquisition of intangible assets	(		7,521 )	(		10,657 )
B07500	Interest received			2,061			2,962
BBBB	Net cash inflow to/outflow from
	investment activities			14,293	(		22,622)
	Cash flows from financing activities
C03000	Increase/decrease in deposits received			31	(		296 )
C04020	Repayment of lease principal	(		9,892 )	(		10,212 )
C04500	Payment of cash dividends	(		51,195 )	(		174,273 )
C09900	Other financing activities			19			8
CCCC	Net cash outflow to financing
	activities	(		61,037)	(		184,773)
DDDD	Effect of exchange rate changes on cash and
	cash equivalents	(		1,751)			9,282
EEEE	Net increase/decrease in cash and cash
	equivalents in current period			145,909	(		434,732 )
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		$	396,589		$	294,699

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

LEADTREND TECHNOLOGY CO. LTD. AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NINE MONTHS ENDED SEPTEMBER 30, 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 November 9, 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 Effective date of IASB interpretations issued (Note 1) Amendment to IFRS 16 "Lease Liabilities in Sale January 1, 2024 (Note 2) and Leaseback" Amendment To IAS 1 "Classification Of Liabilities January 1, 2024 as Current or Non-Current" Amendment to IAS 1 "Non-current Liabilities with January 1, 2024 contractual Terms" Amendments to IAS 7 and IFRS 7 “Supplier Finance January 1, 2024 (Note 3) Arrangements”

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.
Note 3: The amendments provide some transition relief regarding disclosure requirements.

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 28 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

Foreign currency deposits Bank checks and demand deposits Petty cash and cash on hand Cash equivalents Time deposits	September 30, 2023 $ 76,382 81,240 867 238,100 $ 396,589	December 31,2022 $ 59,085 61,549 775 129,271 $ 250,680	September 30, 2022	September 30, 2022
				$ 34,590 52,869 965 206,275 $ 294,699

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

Bank deposit	September 30, 2023	December 31,2022 0.1%~1.41%	September 30, 2022 0%~1.18%
	0.1%~1.58%

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

Financial Assets-Current Non-derivative financial assets measured at fair value compulsively through profit and loss - Fund benefit certificate	September 30, 2023 $ 36,697	December 31,2022 $ 55,634	September 30, 2022	September 30, 2022
				$ 20,518

VIII. Notes and Accounts Receivable

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

Measured at amortized cost Total book amount Receivable account Measured at amortized cost Total book amount	$ 24,764 $ 174,747	$ 18,854 $ 150,790	$ 11,231 $ 175,632

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

IX.	No overdue nor derogation Inventory Finished goods Products in process Raw materials	September 30, 2023 $ 174,747 September 30, 2023 $ 95,335 371,841 162,978	December 31, 2022 $ 150,790 December 31, 2022 $ 118,812 462,857 226,335	September 30, 2022	September 30, 2022
				$ 175,632 September 30, 2022
					$ 212,115 375,897 278,270

$ 630,154 $ 808,004 $ 866,282

The inventory-related cost of goods sold in the period from July 1 to September 30 of 2023 and 2022 , and from January 1 to September 30 of 2023 and 2022 was $207,400,000, $ 192,047,000, $519,940,000 and $790,065,000 respectively.

The cost of goods sold in the period from July 1 to September 30 of 2023 and 2022 , and from January 1 to September 30 of 2023 and 2022 including losses (gains) on inventory decline and stagnation were ($1,472,000), $5,000,000, $13,433,000 and $5,000,000 respectively.

X. Subsidiary

(I) Subsidiaries incorporated into consolidated financial statements

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

	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 Design and development of computer application software and system integration; engaged in the wholesale of computer software, integrated circuits, semiconductor chips and related electronic components; Electronic components manufacturing, integrated circuit chips and products manufacturing, computer hardware and software and peripheral equipment	Percentage of Holdings September 30, 2023 December 31, 2022 September 30 2022 Description
			100% 100% 100% (Note 1&2) － 100% 100% 100% (Note 2)－

Note 1: The non-material subsidiaries of Leadtrend Technology (Samoa) Limited as at 30 September 2023 and Leadtrend Technology (Samoa) Limited and Shenzhen Tongjia as at 30 September 2022 were not significant subsidiaries and their financial statements had not been reviewed by accountants, but the management considered that the aforesaid financial statements had not been reviewed by accountants and would not have a material impact.

Note 2: Leadtrend Technology (Samoa) Limited has been liquidated and has not been liquidated as of September 30, 2023.

XI. Real Estate, Plant and Equipment

Estate, Plant and Equipment
Used by the Company itself Assets leased under operating leases	September 30, 2023 $ 466,935 21,560 $ 488,495	December 31, 2022 $ 529,530 - $ 529,530	September 30, 2022
				$ 500,184 26,385 $ 526,569

Used by the Company itself

Cost Balance as of January 1, 2023 Rental property change to operating lease Increase Reduce Conversion adjustment Balance as of September 30, 2023 Accumulated depreciation Balance as of January 1, 2022 Rental property change to operating lease Increase Decrease Conversion adjustment Balance as of September 30, 2023 Net amount on September 30, 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 September 30, 2022 Accumulated depreciation Balance as of January 1, 2022 Rental property change to operating lease Increase Decrease Conversion adjustment Balance as of September 30, 2022 Net amount on September 30, 2022		Land $ 86,200 5,064 ) - 2,101 ) - $ 79,035 $ - - - - - $ - $ 79,035 $ 86,200 $ 72,270 6,157 ) 13,930 - - $ 80,043 $ - - - - - $ - $ 80,043		Buildings $ 347,845 19,001 ) - 7,055 ) 70 $ 321,859 $ 52,752 2,183 ) 7,905 983 ) 10 $ 57,501 $ 264,358 $ 295,093 $ 301,363 22,796 ) 45,847 - 1,281 $ 325,695 $ 42,302 2,249 ) 7,391 - 20 $ 47,464 $ 278,231		R&D equipment $ 284,890 - 7,534 185 ) 22 $ 292,261 $ 188,290 - 19,219 185 ) 18 $ 207,342 $ 84,919 $ 96,600 $ 252,971 - 19,832 133 ) 251 $ 272,921 $ 161,696 - 20,118 133 ) 198 $ 181,879 $ 91,042		Furniture and fixtures $ 35,386 - 912 202 ) 5 $ 36,101 $ 27,388 - 2,842 188 ) 6 $ 30,048 $ 6,053 $ 7,998 $ 33,492 - 2,251 738 ) 111 $ 35,116 $ 24,902 - 2,565 738 ) 87 $ 26,816 $ 8,300		Molding equipment $ 26,082 - - - - $ 26,082 $ 24,610 - 617 - - $ 25,227 $ 855 $ 1,472 $ 25,356 - 343 - - $ 25,699 $ 23,950 - 475 - - $ 24,425 $ 1,274	Improvements on leased property $ 26,192 - 121 ( 1,512 ) 6 $ 24,807 $ 20,266 - 1,029 ( 1,146 ) 6 $ 20,155 $ 4,652 $ 5,926 $ 21,632 - 4,953 ( 454 ) 117 $ 26,248 $ 16,484 - 3,663 ( 303 ) 107 $ 19,951 $ 6,297		Mask $ 275,274 - 15,527 49,480 ) - $ 241,321 $ 239,033 - 24,706 49,481 ) - $ 214,258 $ 27,063 $ 36,241 $ 242,950 - 23,019 - - $ 265,969 $ 209,029 - 21,943 - - $ 230,972 $ 34,997		Total
	( ( (		( ( ( ( ( (		( ( ( (		( ( ( (				( ( ( (	( (		( ( ( ( ( ( ( (	$ 1,081,869 24,065 ) 24,094 60,535 ) 103 $ 1,021,466 $ 552,339 2,183 ) 56,318 51,983 ) 40 $ 554,531 $ 466,935 $ 529,530 $ 950,034 28,953 ) 110,175 1,325 ) 1,760 $ 1,031,691 $ 478,363 2,249 ) 56,155 1,174 ) 412 $ 531,507 $ 500,184

No impairment losses were recognized or reversed in the period from January 1 to September 30 of 2023 and 2022.

Assets leased under operating leases

sed under operating leases
Cost Balance as of January 1, 2023 From used by the Company itself Balance as of September 30, 2023 Accumulated depreciation Balance as of January 1, 2023 From used by the Company itself Depreciation Expense Balance as of September 30, 2023 Net amount on September 30, 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 September 30, 2022 Accumulated depreciation Balance as of January 1, 2022 From used by the Company itself Depreciation Expense Balance as of September 30, 2022 Net amount on September 30, 2022	Land $ - 5,064 $ 5,064 Land $ - - - $ - $ 5,064 $ - $ - - $ 4,889 $ - - - $ - $ 4,889	Buildings $ - 19,001 $ 19,001 Buildings $ - 2,183 322 $ 2,505 $ 16,496 $ - $ - 2,249 $ 18,103 $ - 1,786 163 $ 1,949 $ 16,154	Total
			$ - 24,065 $ 24,065 Total
			$ - 2,183 322 $ 2,505 $ 21,560 $ - $ - 2,249 $ 22,992 $ - 1,786 163 $ 1,949 $ 21,043

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	September 30, 2023 $ -	December 31, 2022 $ -	September 30, 2022	September 30, 2022
				$ 453

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 2 ~ 8 years 4 ~ 9 years 3 years 2 ~ 6 years 2 ~ 3 years	Assets leased under	Assets leased under
			operating leases 50 years

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

September 30, 2023 December 31, 2022 September 30, 2022 Carrying amount of right-of-use assets Buildings $ 24,180 $ 19,712 $ 22,935

Nine Months Ended September Nine Months Ended September

Additions to right-of-use asset Depreciation expense of right-of-use assets Buildings			30	30	2022 $ 3,141		30	30
			2023 $ 3,255				2023 $ 16,257 $ 9,900		2022
									$ 7,627 $ 10,303

Besides the additions and depreciation disclosed above, there was no significant sublease transactions and indication of impairment for the Nine Months ended September 30, 2023 and 2022.

(II) Lease liability

se liability
Carrying amount of lease liabilities Current Non-Current	September 30, 2023 $ 12,341 $ 12,106	December 31, 2022 $ 12,415 $ 7,568	September 30, 2022
				$ 12,533 $ 10,661

The discount rate for lease liabilities ranges as follows:

Buildings	September 30, 2023 1.96%~2.10%	December 31, 2022 1.96%~2.10%	September 30, 2022
			1.96%~2.10%

(III) Major leasing activities and terms

The Company has leased several buildings for office use for 2~5 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

Three Months Ended September Nine Months Ended September

( Computer Software		30	30		30	30
		2023 739 6 4,010) Specialized Technology			2023 $ 1,576 $ 16 $ 11,825) Other $ 2,922 - $ 2,922 $ 2,922 - $ 2,922 $ - $ -		2022
	$		(	(		(
	$
	$

$ 100,162 2,059 $ 102,221 $ 92,279 2,680 $ 94,959 $ 7,262 $ 7,883		$ 27,972 5,462 $ 33,434 $ 26,984 4,629 $ 31,613 $ 1,821 $ 988				$
						$

2022 and January 1, 2023 Cost Balance as of January 1, 2022 Increase Balance as of September 30, 2022 Cumulative amortization Balance as of January 1, 2022 Increase Balance as of September 30, 2022 Net amount on September 30, 2022	$ 92,624 3,828 $ 96,452 $ 90,451 1,201 $ 91,652 $ 4,800	$ 17,993 9,979 $ 27,972 $ 16,459 7,920 $ 24,379 $ 3,593	$ 8,383 - $ 8,383 $ 2,586 627 $ 3,213 $ 5,170	$ 2,922 - $ 2,922 $ 2,922 - $ 2,922 $ -	$ 121,922 13,807
					$ 135,729
					$ 112,418 9,748
					$ 122,166
					$ 13,563

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

on the following years of durability:
computer software Specialized technology Right of patent Other XIV. Other Assets Current Tax retained Advances on sales Provisional payment Refundable deposit Tax rebate receivable Other Provisional payment Non-Current Refundable deposit Prepayment for equipment XV.Other Current Liabilities Bonuses payable Unpaid leave benefits payable Insurance premium payable Labor expenses payable Payable for equipment Other	September 30, 2023 $ 6,969 4,498 1,025 - - 6,523 $ 19,015 March 31, 2023 $ 3,510 3,495 $ 7,005 September 30, 2023 $ 43,311 5,593 5,052 3,725 - 21,273 $ 78,954	3~6 years 5 years 10 years 3 ~ 5 years December 31, 2022 September 30, 2022 $ 4,726 $ 7,290 4,107 6,549 3,322 5,594 15,000 15,000 2,709 4,255 6,543 8,285 $ 36,407 $ 46,973 December 31, 2022 March 31, 2022 $ 3,772 $ 3,845 5,099 9,209 $ 8,871 $ 13,054 December 31, 2022 September 30, 2022 $ 53,428 $ 46,706 10,145 9,827 4,284 4,174 3,505 3,077 3,282 - 22,875 20,646 $ 97,519 $ 84,430
			$ 7,290 6,549 5,594 15,000 4,255 8,285 $ 46,973 March 31, 2022
			$ 3,845 9,209 $ 13,054 September 30, 2022
				$ 46,706 9,827 4,174 3,077 - 20,646 $ 84,430

XVI. 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 $2,696 and $2,804 thousand for the three months ended September 30, 2023 and 2022, and were $8,260 and $8,197 thousand for the Nine Months ended September 30, 2023 and 2022.

(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 September 30, 2023 and 2022 and for the Nine Months ended September 30, 2023 and 2022, the pension expenses of defined benefit plans were $0, $ 130,000, $216,000 and $390,000 respectively, and these were calculated based on the pension cost rate determined by the actuarial calculation on December 31, 2022 and 2021, respectively.

XVII. Equity

(I)Capital stock

Common stock

y l stock ommon stock
Rated number of shares (thousands) Authorized stock Number of shares issued and fully paid up (thousands) Issued share capital	September 30, 2023 200,000 $ 2,000,000 58,537 $ 585,368	December 31, 2022 200,000 $ 2,000,000 56,883 $ 568,838	September 30, 2022
				200,000 $ 2,000,000 56,488 $ 564,888

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

tal reserves
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	September 30, 2023 $ 245,361 84,732 125 37,219 $ 367,437	December 31, 2022 $ 258,027 84,732 106 47,567 $ 390,432	September 30, 2022
				$ 250,270 84,732 106 41,139 $ 376,247

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 $ 2.8000 $ 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 September 13, 2023.

On July 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 September 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 in current year Other comprehensive gains and losses in current year Balance at end of the year	For	the Nine Months Ended September 30 2023 2022 $ 5,602 $ 1,867 457) 7,691 457) 7,691 $ 5,145 $ 9,558
		2023 $ 5,602 457) 457) $ 5,145
	( (

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 September 9, 2022 and September 23, 2020 respectively to issue new shares with restricted employee option, as explained in Note 18.

For the Nine Months Ended September 30

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 ) 11,553 3,640 ($ 16,752)	2021
		( $ 42,573 ) 13,677 7,750 ($ 21,146)

XVIII. Share-based payment

Stocks with restricted employee's option

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

Date of being adopted by the board of shareholders	Expected number of shares issued (thousand shares) 1,200 1,200 420	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 September 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 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 Grantin g Ratio Granting date ~ October 15 of the One sixth following first year Granting date ~ July 15 of the One sixth following second year

Granting date ~ October 15 of the	One sixth
following second year
Granting date ~ July 15 of the	One sixth
following third year
Granting date ~ July 15 of the	One sixth
following third year
Granting date ~ July 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 Nine Months Ended September 30,2023 Outstanding at the beginning of the year Granted in current 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 ( 136.5 ) ( 24.0) 264.0 $ 34.35	2020 - 2-year new shares with restricted employee option
		Unit(1,000)
		192.5 ( 35.0 ) ( 17.5) 140.0 $ 122

For the Nine Months Ended September 30,2022 Outstanding at the beginning of the year 740.0 Granted in current year ( 145.5 ) Recovered in current year ( 28.5) ( Outstanding at the end of the year 566.0 Employees have granted 293.5 Weighted average fair value given ($) $ 34.35	291.0 - 60.0) 231.0 - $ 122

In addition, on September 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 (The point of performance evaluation≧5.8) 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:

d accrual ratio below:
Granting Period Granting date ~ October 11 of the following first year Granting date ~ July 11 of the following second year Granting date ~ October 11 of the following second year Granting date ~ July 11 of the following third year Granting date ~ October 11 of the following third year Granting date ~ July 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 Nine Months Ended September 30,2023 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	2022 new shares with restricted employee option
	Unit(1,000)
	(	420.0 51) 369 $ 47.1

The compensation costs for the new shares with restricted option as recognized for the three months ended September 30 of 2023 and 2022 are $11,553,000 and $13,677,000 respectively.

XIX. Operating Revenue

erating Revenue
Revenue from customer contracts Integrated circuit	Three Months Ended September			30 iNine Months Ended September 30 2023 2022 $ 813,200 $ 1,346,654
		2023 $ 333,221	2022 $ 316,540		2022 $ 1,346,654

(I) Contractual balance

Contractual balance
Revenue from customer contracts integrated circuit `（`Note 8`）`	September 30, 2023 $ 199,511	December 31,2022 $ 169,644	September 30, 2022 $ 186,863		January 1, 2022
					$ 322,377

(II) Breakdown of customer contract revenue

Differential subdivision by district

Three Months Ended September iNine Months Ended September

Taiwan (where the Company is located) Mainland China Korea Other countries		30			30
		2023	2022		2023	2022
		$ 183,747 146,948 830 1,696 $ 333,221	$ 150,473 158,611 1,135 6,321 $ 316,540		$ 439,914 364,885 1,665 6,736 $ 813,200	$ 690,030 640,121 4,743 11,760 $ 1,346,654

XX. Net Profit of Business Units

(I) Interest incomes

ofit of Business Units rest incomes
Bank deposit Interest on deposit Commercial note With repurchase of bonds	Three Months Ended September 30 2023 2022 $ 797 $ 587 9 5 3 25 - - $ 809 $ 617	Nine Months Ended September 30
	2023 $ 797 9 3 - $ 809	2023 $ 2,110 27 25 - $ 2,162	2022
			$ 2,781 18 44 54 $ 2,897

(II) Other incomes

r incomes
Rental income Other business leases Income from government subsidy Other		Three Months Ended September 30 2023 2022 $ 510 $ 592 - 2,299 2) 1 $ 508 $ 2,892	Nine Months Ended September 30
		2023 $ 510 - 2) $ 508	2023 $ 1,692 - 527 $ 2,219	2022
	(			$ 1,589 6,899 2,527 $ 11,015

(III) Other interests and losses

er interests and losses
Profit and loss on financial assets Gains on financial assets measured at fair value through profit and loss Net gain (loss) on foreign currency exchange Lease modification Loss in disposal of real estate, plant and equipment Other		Three Months Ended September 30 2023 2022 $ 133 $ 115 8,477 2,021 28 - 380 ) - 15,642 276 $ 23,900 $ 2,412	Nine Months Ended September 30
		2023 $ 133 8,477 28 380 ) 15,642 $ 23,900	2023 $ 838 7,015 28 1,843 16,605 $ 26,329		2022
	(			(	$ 1,078 20,820 20 151 ) 331 $ 22,098

(IV) Financial cost

cial cost
Interest on lease liabilities	Three Months Ended September 30 2023 2022 $ 122 $ 130	Nine Months Ended September 30
	2023 $ 122	2023 $ 342	2022
			$ 451

(V) Depreciation and amortization

preciation and amortization
Summary of depreciation costs by function Operating costs Operating Expenses Summary of amortized expenses by function Operating costs Operating Expenses	Three Months Ended September 30 2023 2022 $ 3,905 $ 6,136 17,611 16,394 $ 21,516 $ 22,530 $ 297 $ 303 2,292 3,017 $ 2,589 $ 3,320	Nine Months Ended September 30
	2023 $ 3,905 17,611 $ 21,516 $ 297 2,292 $ 2,589	2023 $ 14,061 52,479 $ 66,540 $ 893 7,043 $ 7,936	2022
			$ 20,509 46,268 $ 66,777 $ 406 9,342 $ 9,748

(VI) Employee benefit expenses

Post-retirement benefits (Note 16) Identified allocation plan Identified benefit plan Share-based payment (Note 18) Delivery of equity Other employee benefits Total employee benefit expenses Summary by function Operating costs Operating Expenses	Three Months Ended September 30 2023 2022 $ 2,696 $ 2,804 - 130 2,696 2,934 4,181 4,737 82,253 76,472 $ 89,130 $ 84,143 $ 10,069 $ 10,248 79,061 73,895 $ 89,130 $ 84,143	Nine Months Ended September 30	Nine Months Ended September 30	Nine Months Ended September 30	Nine Months Ended September 30
			2023 $ 8,260 216 8,476 11,553 222,695 $ 242,724 $ 35,997 206,727 $ 242,724		2022
					$ 8,197 390 8,587 13,677 290,203 $ 312,467 $ 46,793 265,674 $ 312,467

(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 July 1 to September 30 and January 1 to September 30 of 2023, so employee compensation and directors' compensation are not assessed. The estimated employee remuneration and directors' remuneration for the period from July 1 to September 30 and January 1 to September 30 of 2022 are as follows:

Estimated recognized proportion

Estimated recognized proportion
Employee remuneration Director's remuneration	For the Nine Months	Ended September 30 2022 14% 1%
	2023 - -

Amount

Amount
Employee remuneration Director's remuneration	Three Months Ended September 30			Nine Months Ended September 30
		2023 $ - $ -	2022 $ 2,246 $ 181	2023 $ - $ -	2022 $ 333,861 $ 2,724

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

Total foreign currency exchange benefits Total foreign currency exchange loss Net (loss) profit	Three Months Ended September 30 2023 2022 $ 9,014 $ 9,509 ( 537) ( 7,488) $ 8,477 $ 2,021	Three Months Ended September 30 2023 2022 $ 9,014 $ 9,509 ( 537) ( 7,488) $ 8,477 $ 2,021	Three Months Ended September 30 2023 2022 $ 9,014 $ 9,509 ( 537) ( 7,488) $ 8,477 $ 2,021	Nine Months Ended September 30	Nine Months Ended September 30	Nine Months Ended September 30	Nine Months Ended September 30
		2023 $ 9,014 537) $ 8,477			2023 $ 14,077 7,062) $ 7,015		2022
	(		(	(		(	$ 37,094 16,274) $ 20,820

XXI. Income Tax

(I) Income tax recognized in profit and loss

The main components of income tax expense are listed below:

Three Months Ended September 30 Nine Months Ended September 30

Current income tax Incurred in current year ( Deferred income tax Incurred in current year Income tax expense recognized as profit and loss	2023 $ 310 ) 310 $ -	2022 $ 1,039 110 $ 1,149	2023 2022 ( $ 512 ) $ 43,604 512 352 $ - $ 43,956	2022	2022
			(		$ 43,604 352 $ 43,956

(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

Three Months Ended September 30 Nine Months Ended September 30

Basic (Loss) earnings per share Diluted (Loss) earnings per share	2023 $ 0.43 $ 0.43	2022 $ 0.19 $ 0.18		2023 $ 0.09) $ 0.09)		2022
			( (			$ 2.81 $ 2.73

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 July 21, 2022. Due to retroactive adjustment, the changes in basic and diluted earnings per share for the period from July 1 to September 30 of 2023 and January 1 to September 30 of 2023 are as follows:

Unit: $ per share

Before retroactive adjustment For the Three Months Ended September 30 For the Nine Months Ended September 30 $ 0.19 $ 2.89 $ 0.19 $ 2.81	Before retroactive adjustment For the Three Months Ended September 30 For the Nine Months Ended September 30 $ 0.19 $ 2.89 $ 0.19 $ 2.81	After retroactive adjustment For the Three Months Ended September 30 For the Nine Months Ended September 30 $ 0.19 $ 2.81 $ 0.18 $ 2.73	After retroactive adjustment For the Three Months Ended September 30 For the Nine Months Ended September 30 $ 0.19 $ 2.81 $ 0.18 $ 2.73	After retroactive adjustment For the Three Months Ended September 30 For the Nine Months Ended September 30 $ 0.19 $ 2.81 $ 0.18 $ 2.73
For the Three Months Ended September 30 $ 0.19 $ 0.19		For the Three Months Ended September 30 $ 0.19 $ $ 0.18 $
	$ 2.89 $ 2.81			2.81 2.73
			$

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

Three Months Ended	Three Months Ended	Three Months Ended	September 30	September 30
	2023	2022 $ 10,669 September 30 2022 57,292 613 779 58,684	2022
	$ 24,796		$ 10,669

2023 57,725 515 - 58,240				2023 57,658 - - 57,658

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 loss from July 1 to September 30 of 2023 and January 1 to September 30 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
September 30, 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	Level 1 $ 36,697 Level 1 $ 55,634	Level 2 $ - Level 2 $ -	Level 3 $ - Level 3 $ -	Total
				$ 36,697 Total
				$ 55,634

September 30, 2022 Financial assets measured at fair value through profit and loss Fund benefit certificate		Level 1 $ 20,518		Level 2 $ -		Level 3 $ -		Total
								$ 20,518

There was no transfer of fair value measurement between Class 1 and Class 2 in the period from January 1 to September 30 of 2023 and 2022.

(III) Classification of financial instruments

Financial Assets Measured at fair value through profit and loss Non-derivative financial assets measured at fair value Financial assets measured at cost after amortization Cash and Cash Equivalents Notes and accounts receivable Refundable deposit Financial liabilities Measured at amortized cost Payable account Deposits received	September 30, 2023 $ 36,697 396,589 199,511 3,510 63,745 945	December 31, 2022 $ 55,634 250,680 169,644 18,772 63,567 914	September 30, 2022
			$ 20,518 294,699 186,863 18,845 132,495 950

(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 Nine Months Ended September 30 2023 2022 $ 5,952 $ 2,166	Influence of RMB	Influence of RMB
	For the Nine Months Ended September 30
2023 $ 5,952	2023 $ 3,247	2022
		$ 1,567

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 of 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:

Interest rate risk in fair value - Financial assets －Financial liabilities Interest rate risk in cash flow - Financial assets	September 30, 2023 $ 238,100 24,447 157,622	December 31, 2022 $ 129,271 19,983 120,634	September 30, 2022
			$ 206,275 23,194 87,459

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 September 30 of 2023 and 2022 will increase/decrease by $118 thousands and $66

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 September 30, 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.

September 30, 2023

Payable account Lease liabilities Other current liabilities	Immediate payment or less than 1 month $ 32,628 $ 1,121 $ 12,210		1 ~ 3 months $ 31,117 $ 2,243 $ 6,206	3 months Up to 1 year $ - $ 9,609 $ -	1 ~ 5 years $ - $ 12,386 $ -		Total
							$ 63,745 $ 25,359 $ 18,416

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

as follows:
Less than 1 year Lease liabilities $ 12,973 December 31, 2022 Immediate payment or less than 1 month 1 ~ 3 months Payable account $ 21,875 $ 41,692 Lease liabilities $ 1,079 $ 2,158 Other current liabilities $ 15,571 $ 9,235	1～5 years	>5 $ 1 ~ 5 years $ - $ 7,644 $ -	>5	years
	$ 12,386		$	Total
	3 months Up to 1 year
	$ - $ 9,440 $ -	$ - $ 7,644 $ -		$ 63,567 $ 20,321 $ 24,806

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

s follows:
Lease liabilities		Less than 1 year $ 12,677		1～5 years $ 7,644		>5 years
						$ -

September 30, 2022

Payable account Lease liabilities Other current liabilities	Immediate payment or less than 1 month	Immediate payment or less than 1 month		1 ~ 3 months	3 months Up to 1 year $ - $ 9,544 $ 112	1 ~ 5 years	1 ~ 5 years		Total
		$ 50,637 $ 1,084 $ 16,444		$ 81,858 $ 2,169 $ 7,173			$ - $ 10,849 $ -		$ 132,495 $ 23,646 $ 23,729

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

Less than 1

s follows:		Less than 1
lease liabilities		37 year $ 12,797	1～5 years $ 10,849	>5 years
				$ -

XXV. 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

Three Months Ended September 30 2023 2022 Short-term employee benefits $ 6,360 $ 5,306 Post-retirement benefits 174 254 Share-based payment 1,014 1,047 $ 7,548 $ 6,607	Three Months Ended September 30 2023 2022 Short-term employee benefits $ 6,360 $ 5,306 Post-retirement benefits 174 254 Share-based payment 1,014 1,047 $ 7,548 $ 6,607	Three Months Ended September 30 2023 2022 Short-term employee benefits $ 6,360 $ 5,306 Post-retirement benefits 174 254 Share-based payment 1,014 1,047 $ 7,548 $ 6,607	Three Months Ended September 30 2023 2022 Short-term employee benefits $ 6,360 $ 5,306 Post-retirement benefits 174 254 Share-based payment 1,014 1,047 $ 7,548 $ 6,607	Nine Months 2023 $ 19,916 709 2,764 $ 23,389	Ended September 30
		2023 $ 6,360 174 1,014 $ 7,548	2022 $ 5,306 254 1,047 $ 6,607		2022 $ 16,878 1,023 2,776 $ 20,677

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

XXVI. 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.

XXVII. 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:

September 30, 2023 Unit:1,000 in each foreign currency

Foreign currency assets Monetary items USD RMB	Foreign Currency $ 4,685 14,708	Exchange Rate 32.270 (USD : TWD) 4.415`（（`RMB`：`TWD`）`	Carrying Amount	Carrying Amount
				$ 151,171 64,936 $ 216,107

Foreign Currency Exchange Rate Foreign currency liabilities Monetary items USD 995 32.270 (USD : TWD) December 31, 2022Unit:1,000 in each foreign currency Foreign Currency Exchange Rate Foreign currency assets Monetary items USD $ 4,748 30.710 (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) September 30, 2022Unit:1,000 in each foreign currency Foreign Currency Exchange Rate Foreign currency assets Monetary items USD $ 3,985 31.750 (USD : TWD) USD 17 7.0981`（`USD`：`RMB`）` RMB 7,008 4.473`（`RMB`：`TWD`）` Foreign currency liabilities Monetary items USD 2,638 31.750 (USD : TWD)	Foreign Currency Exchange Rate Foreign currency liabilities Monetary items USD 995 32.270 (USD : TWD) December 31, 2022Unit:1,000 in each foreign currency Foreign Currency Exchange Rate Foreign currency assets Monetary items USD $ 4,748 30.710 (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) September 30, 2022Unit:1,000 in each foreign currency Foreign Currency Exchange Rate Foreign currency assets Monetary items USD $ 3,985 31.750 (USD : TWD) USD 17 7.0981`（`USD`：`RMB`）` RMB 7,008 4.473`（`RMB`：`TWD`）` Foreign currency liabilities Monetary items USD 2,638 31.750 (USD : TWD)	Carrying Amount $ 32,123 Carrying Amount $ 145,819 536 1,404 $ 147,759 $ 41,629 Carrying Amount $ 126,525 555 31,349 $ 158,429 $ 83,757

	31.750 (USD : TWD) 7.0981`（`USD`：`RMB`）` 4.473`（`RMB`：`TWD`）` 31.750 (USD : TWD)	$ 126,525 555 31,349 $ 158,429 $ 83,757
Monetary items USD USD RMB Foreign currency liabilities
Monetary items USD

The total realized and unrealized net gain (loss) on foreign currency exchange of the Company from July 1 to September 30 of 2022 and 2021 and January 1 to September 30 of 2022 and 2021 were $8,477 thousands, $2,021 thousands, $7,015 thousands and $20,820 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.

XXVIII. 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.

Loans to others:none
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	-	$ 36,697	-	$ 36,697	Note 1

Note 1: Based on net value as at September 30, 2022.

Note 2: No security, pledged loans or other agreed restriction for use of the securities as listed above has been offered as of September 30, 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:

==> picture [529 x 168] intentionally omitted <==

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

Notes and account
Transaction Situation
Conditions and reason for receivable/payable
Company difference from general terms Ratio to total
Ratio to
buying/selling Trader Relationship Credit of trading n o t e s a n d R e m a r k
total
goods Buy or Sell A m o u n t Extension B a l a n c e a c c o u n t s
goods Credit Extension
Period Unit price receivable/pa
(%) Period
y a b l e ( % )
LEADTREND LEADTREND Parent Sell $ 218,935 29 60 days on Note Equivalent $ 38,078 25 －
TECHNOLOGY TECHNOLOGY company monthly
CO. LTD. (SHENZHEN) CO. LTD. payment
----- End of picture text -----

Note: The price at which the Company sells goods to affiliated parties is fixed in accordance with the general trading rules

Amounts receivable from related parties amounting to NT $100 million or more than 20% of the paid-in capital: none.
Trading involving derivatives: none.
Others: Information and amount of business relations and important transactions between the parent company and subsidiaries:

For the Three Six Ended September 30 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	Amount $ 218,935 38,078	Trading Condition Note 3 Note 3	Ratio to total revenues or total assets 27% 2%
			1 1	Sales revenue Accounts Receivable - related parties

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 -	USD 768	-	1-	$ -	( $ 23)	($ 23)	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 / USD	$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 recove the curre	unt of t remitted red 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
LEADTREND TECHNOLOGY (SHENZHEN) CO. LTD.	Computer software design service, computer system integration service, wholesale of integrated circuits and related electronic products, and agent import and export business activities	$ 319,473 ( USD 9,900 )	`註一`	$ 227,504 ( USD 7,050 )	$ -	$ -	$ 227,504 ( USD 7,050 )	$ 20,034 ( USD 648 )	100%	$ 20,034 ( USD 648 )	$ 211,807 ( USD 6,564 )	$ -

Accumulated remittance from Taiwan at the end of the current period Amount of investment in Mainland China	Amount of investment approved by the Ministry of Economic Affairs	The limit of Investment in Mainland China at 60% of the net value as per the regulations of the Ministry of Economic Affairs
$227,504 (USD 7,050)	$319,473 (USD9,900 )	$964,683

Note 1: The investment is made directly in companies in Mainland China.
Note 2: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 3: 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 September 30, 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 4: 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 September 30, 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:

equity:
Name of major shareholder	Shares
	Shares Held	Shareholding Ratio (%)
Jieneng Investment Co. Ltd.	4,784,628	8.17

XXIX. 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 July 1 to September 30 and from January 1 to September 30 of 2023 and 2022, refer to the consolidated income statement for the period from July 1 to September 30 and January 1 to September 30 of 2023 and 2022. For the department's assets to be reported as of September 30, 2023 and September 30, 2022, refer to the consolidated balance sheet as of September 30, 2023 and September 30, 2022 respectively.

AI assistant

LD — Interim / Quarterly Report 2023

52348_rns_2023-11-13_21fec298-435e-4d29-b680-f36de0cecd98.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)

(Reviewed, Not Audited)

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 NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise) (Reviewed, Not Audited)

I. History of Company

IV. Summary of Major Accounting Policies

(I) Compliance statement

(III) Consolidation basis

V. Material Accounting Judgments and Key Sources of Estimation Uncertainty

VI. Cash and Cash Equivalents

Aging analysis of net accounts receivable

X. Subsidiary

(I) Subsidiaries incorporated into consolidated financial statements

XI. Real Estate, Plant and Equipment

Used by the Company itself

Assets leased under operating leases

(II) Lease liability

(III) Major leasing activities and terms

(IV) Other Lease Information

XVI. Post-Retirement Welfare Plan

(I) Identified allocation plan

(II) Identified welfare plans

XVII. Equity

(I)Capital stock

Common stock

(II) Capital reserves

(III) Retained earnings and dividend policy

(IV) Other rights and interests

XVIII. Share-based payment

Stocks with restricted employee's option

XIX. Operating Revenue

Differential subdivision by district

XX. Net Profit of Business Units

(I) Interest incomes

(II) Other incomes

(III) Other interests and losses

(IV) Financial cost

(V) Depreciation and amortization

(VI) Employee benefit expenses

(VII) Remuneration of employees and directors

Estimated recognized proportion

Amount

Amount

(VIII) Gains/losses in foreign currency exchange

XXI. Income Tax

(I) Income tax recognized in profit and loss

(II) Approval of income tax

Net (Loss) profit for the year

XXIII. Capital Risk Management

XXIV. Financial Instruments

1.Fair value hierarchy

(III) Classification of financial instruments

(IV) Purpose and policies of financial risk management

1. Market risk

Sensitivity analysis

(2) Interest rate risk

Sensitivity analysis

2. Credit risk

3.Liquidity risk

September 30, 2023

September 30, 2022

XXV. Transactions with Related Parties

XXVI. Major Contingent Liabilities and Unrecognized Contractual Commitments

September 30, 2023 Unit:1,000 in each foreign currency

XXVIII. Matters Disclosed in Notes

For the Three Six Ended September 30 of 2023

LD Interim / Quarterly Report 2023