LD - Interim / Quarterly Report 2024

Stock Code: 3588

Leadtrend Technology Corporation and Subsidiaries

Consolidated Financial Statements for the Three Months Ended March 31, 2024 and 2023 and Independent Auditors’ Review Report

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

				Number of Note
				to the Financial
		Item	Page	Statements
I.	Cover		1	-
II.	Table of Contents		2	-
III.	Independent Auditors’ Review Report		3-4	-
IV.	Consolidated Balance Sheet		5	-
V.	Consolidated Statement of Comprehensive Income		6-7	-
VI.	Consolidated Statement of Changes in Equity		8	-
VII.	Consolidated Statement of Cash Flows		9-10	-
VIII.	Notes to Consolidated Financial Statements
(1)		History of Company	11	1
(2)		Date and Procedure of Adoption of Financial	11	2
		Statements
(3)		Applicability of New and Amended Standards and	11	3
		Interpretations
(4)		Explanations of Material Accounting Policies	12-15	4
(5)		Main Sources of Material Accounting Judgments,	15	5
		Estimates and Assumption Uncertainty
(6)		Explanation of Important Accounting Items	24-39	6`～`25
(7)		Transactions with Related Parties	39	26
(8)		Material Contingent Liabilities and Unrecognized	39	27
		Contractual Commitments
(9)		Significant Subsequent Event	-	-
(10)		Information of Foreign Currency Assets and	39-41	28
		Liabilities Having a Material Impact
(11)		Disclosures in the Notes
		1. Information Relevant to Material Transactions	41	29
		2. Information Relevant to Reinvestments	41	29
		3. Information of Investments in Mainland China	42	29
		4. Business Relations and Important Transactions	42	29
		between Parent Company and Subsidiaries
		5. Information of Key Shareholders	42-43	29
(12)		Information of Segments	43	30

INDEPENDENT AUDITORS’ REVIEW REPORT

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

Introduction

We have reviewed the accompanying consolidated balance sheets of Leadtrend Technology Co.Ltd. and its subsidiaries (collectively, the “Group”) as of March 31, 2024 and 2023, the related consolidated statements of comprehensive income, 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, 2024 and 2023, its consolidated financial performance and its consolidated cash flows for the three months ended March 31, 2024 and 2023 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 May 9, 2024

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 SHEET

(In Thousands of New Taiwan Dollars)

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March 31, 2024 December 31, 2023 March 31, 2023
(Reviewed) (Audited) (Reviewed)
Code ASSETS Amount ％ Amount ％ Amount ％
Current asset
1100 Cash and cash equivalents (Note 6) $ 409,923 22 $ 457,745 24 $ 223,795 12
1110 Financial Assets measured at fair value
through profit and loss - Current (Note 7) 61,565 3 83,823 5 78,410 4
1170 Notes and Accounts Receivable (Note 8) 227,086 12 191,426 10 141,179 8
130X Inventory (Note 9) 633,156 34 607,755 32 783,282 43
1460 Non-current assets held for sale and
discontinued operations (Note 10) - - - - 8,185 1
1470 Other current assets (Note 15) 21,500 1 19,210 1 37,010 2
11XX Total current assets 1,353,230 72 1,359,959 72 1,271,861 70
Non-Current Assets
1600 Real estate, plant and equipment (Note 12) 480,426 26 477,962 26 511,341 28
1755 Right-of-use assets (Note 13) 19,814 1 20,748 1 16,594 1
1780 Intangible assets (Note 14) 10,638 1 11,132 1 16,460 1
1840 Deferred income tax assets - - 541 - - -
1900 Other non-current assets (Note 15) 3,548 - 7,747 - 10,834 -
15XX Total non-current assets 514,426 28 518,130 28 555,229 30
1XXX Total assets $ 1,867,656 100 $ 1,878,089 100 $ 1,827,090 100
Liabilities and Equity
Current liability
2170 Accounts payable $ 101,100 5 $ 107,636 6 $ 58,175 3
2200 Remuneration payable to staff and directors
(Note 21) 21,253 1 19,215 1 37,508 2
2230 Current income tax liabilities (Note 22) 9,895 1 10,844 - 14,944 1
2280 Lease liabilities - current (Note 13) 10,094 1 11,785 1 11,487 -
2399 Other current liabilities (Note 16) 46,130 2 75,259 4 53,288 3
21XX Total current liabilities 188,472 10 224,739 12 175,402 9
Non-current liability
2570 Deferred income tax liabilities 374 - - - 78 -
2580 Lease liabilities - non-current (Note 13) 9,798 1 9,529 1 5,195 1
2640 Net defined benefit liabilities - non-current
(Notes 4 and 17) - - - - 4,879 -
2645 Deposits received 4,482 - 860 - 1,051 -
25XX Total non-current liabilities 14,654 1 10,389 1 11,203 1
2XXX Total liabilities 203,126 11 235,128 13 186,605 10
Equity (Notes 18 and 19)
Share capital
3110 Common stock 589,003 31 589,178 31 568,528 31
Capital reserve
3210 Share premium 254,672 14 254,672 14 258,027 14
3251 Donations received from shareholders 84,732 4 84,732 4 84,732 5
3273 Stocks with restricted employee's option 49,645 3 50,306 3 45,667 2
3280 Other 132 - 125 - 125 -
Retained earnings
3310 Statutory surplus reserves 215,284 11 215,284 11 199,793 11
3350 Undistributed earnings 495,604 27 485,253 26 503,494 28
Other equity
3410 Exchange difference in conversion of
financial statements by foreign operating
institutions 4,947 - ( 786 ) - 6,932 -
3491 Remuneration not gained by staff ( 29,489 ) ( 1 ) ( 35,803 ) ( 2 ) ( 26,813 ) ( 1 )
3XXX Total equity 1,664,530 89 1,642,961 87 1,640,485 90
Total liabilities and equity $ 1,867,656 100 $ 1,878,089 100 $ 1,827,090 100
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The notes below are an integral part of these consolidated financial statements.

LEADTREND TECHNOLOGY CO. LTD. AND ITS SUBSIDIARIES CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(In Thousands of New Taiwan Dollars, Except Earnings Per Share) (Reviewed, Not Audited)

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Three Months Ended March 31
2024 2023
Code Amount ％ Amount ％
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Operating revenues (Note 20) 4110 Sales revenue 4170 Sales returns and allowances ( 4000 Net operating revenue Operating costs (Notes 9, 17 and 21) 5110 Cost of goods sold 5900 Operating margin Operating expenses (Notes 17 and 21) 6100 Marketing expenses 6200 Administrative expenses 6300 Research and development expenses 6000 Total operating expenses 6900 Net operating profit Non-operating income and expenditure (Note 21) 7100 Interest income 7010 Other Income 7020 Other interests and losses 7050 Finance costs ( 7000 Total non-operating income and expenses 7900 Pre-tax net profit 7950 Income tax expense (Notes 4 and 22) 8200 Net profit for the year	$ 313,976 2,892) ( 311,084 193,672 117,412 18,545 33,020 63,924 115,489 1,923 1,286 1,500 5,751 109) 8,428 10,351 - 10,351	101 $ 223,718 104 1) ( 7,772) ( 4) 100 215,946 100 63 137,694 64 37 78,252 36 6 14,245 7 11 21,760 10 20 60,609 28 37 96,614 45 - ( 18,362) ( 9) - 514 - 1 1,148 1 2 61 - - ( 98) - 3 1,625 1 3 ( 16,737 ) ( 8 ) - - - 3 ( 16,737 ) ( 8 )

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Three Months Ended March 31
2024 2023
Code Amount ％ Amount ％
Other Comprehensive Income
and loss
8360 Items that may be
reclassified subsequently
to profit or loss:
8361 Exchange
differences arising
on translation of
foreign operations
（ Note 18 ） $ 5,733 2 $ 1,330 1
8500 Total Comprehensive Income 16,084 5 ( 15,407 ) ( 7 )
Earing Per Share
(NT$, Note 23)
9750 Basic earnings per share $ 0.18 ( $ 0.29 )
9850 Diluted earnings
per share $ 0.18 ( $ 0.29 )
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The notes below are an integral part of these consolidated financial statements.

LEADTREND TECHNOLOGY CO. LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

(Reviewed, Not Audited)

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Other equity items
Capital on issued common shares Capital reserve Retained earnings Foreign operators
Number of Holdings Donations received Exchange difference
Restricted employee Statutory surplus Undistributed Remuneration not
(Shares In Thousands) Amount Share premium from shareholders Other Total in conversion of Total equity
employee's option reserves earnings gained by staff
Code financial statements
A1 Balance as of January 1, 2023 56,883 $ 568,838 $ 258,027 $ 84,732 $ 47,567 $ 106 $ 199,793 $ 520,231 $ 720,024 $ 5,602 ( $ 31,945 ) $ 1,652,951
C17 Changes in other capital reserves - - - - - 19 - - - - - 19
D1 Net profit for the three months ended March 31, 2023 - - - - - - - ( 16,737) ( 16,737) - - ( 16,737 )
D3 Other comprehensive income for the three months ended March
31, 2023, net of income tax - - - - - - - - - 1,330 - 1,330
D5 Total comprehensive income for the three months ended March
31, 2023 - - - - - - - ( 16,737) ( 16,737) 1,330 - ( 15,407)
N1 Canceled stocks with restricted employee's option
( 31) ( 310) - - 310 - - - - - - -
N1 Compensation cost on stocks with restricted employee's option - - - - ( 2,210) - - - - - 5,132 2,922
Z1 Balance as of March 31, 2023 56,852 $ 568,528 $ 258,027 $ 84,732 $ 45,667 $ 125 $ 199,793 $ 503,494 $ 703,287 $ 6,932 ( $ 26,813 ) $ 1,640,485
A1 Balance as of January 1, 2024 58,918 $ 589,178 $ 254,672 $ 84,732 $ 50,306 $ 125 $ 215,284 $ 485,253 $ 700,537 ($ 786 ) ( $ 35,803 ) $ 1,642,961
C17 Changes in other capital reserves - - - - - 7 - - - - - 7
D1 Net profit for the three months ended March 31, 2024 - - - - - - - 10,351 10,351 - - 10,351
D3 Other comprehensive income for the three months ended March
31, 2024, net of income tax - - - - - - - - - 5,733 - 5,733
D5 Total comprehensive income for the three months ended March
31, 2024 - - - - - - - 10,351 10,351 5,733 - 16,084
N1 Canceled stocks with restricted employee's option ( 18 ) ( 175 ) - - 175 - - - - - - -
N1 Compensation cost on stocks with restricted employee's option - - - - ( 836 ) - - - - - 6,314 5,478
Z1 Balance as of March 31, 2024 58,900 $ 589,003 $ 254,672 $ 84,732 $ 49,645 $ 132 $ 215,284 $ 495,604 $ 710,888 $ 4,947 ( $ 29,489 ) $ 1,664,530
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The notes below are an integral part of these consolidated financial statements.

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

(In Thousands of New Taiwan Dollars) (Reviewed, Not Audited)

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Three Months Ended March 31
Code 2024 2023
Cash flow from operating activities
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Code	Cash flow from operating activities			2024		2023
A10000	Pre-tax net profit		$	10,351	( $	16,737 )
A20010	Revenue expense loss items：
A20100	Depreciation expense			19,590		18,890
A20200	Amortization expense			1,898		2,830
A20400	Expected credit losses recognized
	on investments in debt
	instruments	(		413 )	(	331 )
A20900	Financial Costs			109		98
A21200	Interest income	(		1,286 )	(	514 )
A21900	Compensation cost on stocks with
	restricted employee's option			5,478		2,922
A24100	Loss (gain) on foreign exchange, net	(		5,063 )	(	1,604 )
A22500	Loss on disposal or retirement of
	property, plant and equipment,
	net			7		-
A30000	Net changes in operating assets and
	liabilities:
A31150	Notes and accounts receivable, net	(		29,586 )		29,889
A31200	Inventories	(		25,401 )		24,722
A31240	Other current assets	(		2,316 )	(	579 )
A32150	Accounts payable	(		8,905 )	(	6,067 )
A32180	Remuneration payable to staff and
	directors			2,038		-
A32230	Other current liabilities	(		29,593 )	(	40,484 )
A32240	Net defined benefit liability			-		39
A33000	Cash generated from operations	(		63,092 )		13,074
A33300	Income taxes paid	(		109 )	(	98 )
A33500	Income tax paid	(		34)	(	7)
AAAA	Net cash generated by operating
	activities	(		63,235)		12,969
	Cash flow from investment activities
B00100	Acquisition of financial assets measured
	at fair value through profit and loss			-	(	22,155 )
B00200	Dispose of financial assets measured at
	fair value through profit and loss			24,244		-
B02700	Acquisition of real estate, plant and
	equipment	(		13,465 )	(	11,215 )
B03700	Increase in deposit margin	(		23 )	(	5 )
B04500	Acquisition of intangible assets	(		1,246 )	(	5,461 )
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Three Months Ended March 31
Code 2024 2023
B07500 Interest received $ 1,312 $ 490
BBBB Net cash outflows from investment
activities 10,822 ( 38,346 )
Cash flows from financing activities
C03000 Increase in deposits received 3,622 137
C04020 Repayment of lease principal ( 3,727 ) ( 3,326 )
C09900 Other financing activities 7 19
CCCC Net cash outflow to financing
activities ( 98 ) ( 3,170 )
DDDD Effect of exchange rate changes on cash and
cash equivalents 4,689 1,662
EEEE Net increase in cash and cash equivalents ( 47,822 ) ( 26,885 )
E00100 Cash and cash equivalents,
beginning of period 457,745 250,680
E00200 Cash and cash equivalents,
end of period $ 409,923 $ 223,795
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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, 2024 AND 2023 (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 on September 18, 2002, approved by the Ministry of Economic Affairs. It mainly engages 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 9, 2024.

III. Applicability of New 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.

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Newly issued/amended/revised criteria and Effective date of IASB
interpretations issued (Note 1)
Amendments to IFRS 10 and IAS 28 "Sale or TBD
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Newly issued/amended/revised criteria and interpretations Amendments to IFRS 10 and IAS 28 "Sale or	Effective date of IASB issued (Note 1) TBD
Investment of Assets Between Investors and Their
Affiliates or Joint Ventures"
IFRS 17 "Insurance Contract"	January 1, 2023
Amendment to IFRS 17	January 1, 2023
Amendment to IFRS 17 "First Application of IFRS	January 1, 2023
17 and IFRS 9- Comparative Information"
IFRS 18 "Presentation of Financial Statements and	January 1, 2027
Disclosure"
Amendment to IAS 21 "Lack of Exchangeability"	January 1, 2025 (Note 2)

Note1: Unless otherwise noted, the above new issued/amended/revised criteria or interpretation shall take effect during the annual reporting period commencing after such date.

Note2: For annual reporting periods beginning on or after January 1, 2025. Upon initial application of this amendment, comparative periods shall not be restated, and the impact shall be recognized in retained earnings or equity under the revaluation surplus (where appropriate) of the foreign operations' exchange differences as of the date of initial application, as well as the related affected assets and liabilities.

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

This consolidated financial report is prepared in accordance with the Financial Reporting Standards for Securities Issuers and IAS 34 "Interim Financial Reports" approved and issued effective by the Financial Supervisory Commission. This consolidated financial report does not contain all the disclosures required by IFRS accounting standards for the entire annual financial report.

(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 11 and 29 for details on the subsidiaries, shareholding ratios a nd operating items.

(IV) Other significant accounting policies

Except for the following, please refer to the consolidated financial statements for the year ended December 31, 2023.

The standard for distinguishing between current and non-current assets and liabilities is as follows:

Current assets:

(1) The assets held primarily for trading purposes.
(2) Assets expected to be realized within 12 months after the balance sheet date.
(3) Cash and cash equivalents (excluding those restricted for exchange or settlement of liabilities beyond 12 months from the balance sheet date).

Current liabilitie:

(1) The liabilities held primarily for trading purposes.
(2) The liabilities due for settlement within 12 months after the balance sheet date.
(3) Liabilities for which there is no substantive right at the balance sheet date to defer settlement to at least 12 months after the balance sheet date.

Those that are not current assets or current liabilities as mentioned above are classified as non-current assets or non-current liabilities.

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.

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, 2023 for the material.

VI. Cash and Cash Equivalents

I.Cash and Cash Equivalents
Bank checks and demand deposits Foreign currency deposits Petty cash and cash on hand Cash equivalents Time deposits Commercial note	March 31, 2024		December 31, 2023 $ 51,337 63,089 619 342,700 - $ 457,745	March 31, 2023
		$ 54,159 43,949 515 311,300 - $ 409,923			$ 48,939 24,854 857 140,145 9,000 $ 223,795

The interest rate for cash and equivalent cash at the balance sheet date ranges as follows March 31, 2024 December 31, 2023 March 31, 2023 Bank deposit 0.05%~3.93% 0.1%~4.05% 0.1%~1.48% Financial Instruments measured at fair value through profit and loss March 31, 2024 December 31, 2023 March 31, 2023 Financial Assets - Current Non-derivative financial assets measured at fair value compulsively through profit and loss - Fund benefit certificate $ 61,565 $ 83,823 $ 78,410

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

VIII. Notes and Accounts Receivable

March 31, 2024 December 31, 2023 March 31, 2023

Notes receivable Measured at amortized cost Total book amount $ 46,625 $ 22,682 $ 16,653 Accounts receivable Measured at amortized cost Total book amount $ 180,461 $ 168,744 $ 124,526

The Company's average credit period for merchandise sales is 30 to 60 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 IX. Inventory	March 31, 2024 $ 180,461	December 31, 2023 $ 168,744	March 31, 2023 $ 124,526

ntory
Finished goods Products in process Raw materials	March 31, 2024		December 31, 2023 $ 91,849 351,405 164,501 $ 607,755	March 31, 2023
		$ 77,720 387,754 167,682 $ 633,156			$ 175,105 392,779 215,398 $ 783,282

Inventory-related cost of goods sold from January 1 to March 31, 2024 and 2023 were $193,672 and $137,694 respectively.

The cost of goods sold from January 1 to March 31 in 2024 and 2023 includes inventory depreciation and sluggish losses were $1,657 and $488 respectively.

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

March 31, 2024 December 31, 2023 March 31, 2023 Real estate, plant and equipment $ - $ - $ 8,185

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.

XI. Subsidiary

(I) Subsidiaries incorporated into consolidated financial statements

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

Name of company invested in:	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, 2024 December 31,2023 March 31, 2023 Note
LEADTREND TECHNOLOGY CO. LTD.			- - 100% 1. 100% 100% 100% 2.

NOTE 1 ： As of March 31, 2023, the financial statements of Leadtrend Technology (Samoa) Limited, a non-significant subsidiary of Leadtrend Technology (Samoa) Limited, have not been reviewed by accountants. However, the management believes that the aforementioned financial statements have not been reviewed by accountants, which will not have a significant impact. NOTE 2 ： Leadtrend Technology (Samoa) Limited was liquidated and deregistered in November 2023.

XII. Real Estate, Plant and Equipment

Real Estate, Plant and Equipment
Assets used by the Company Assets subject to operating leases		March 31,2024 $ 462,228 18,198 $ 480,426	December 31, 2023 $ 477,962 - $ 477,962		March 31,2023
					$ 485,234 26,107 $ 511,341

Assets used by the Company

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R&D Office Molding Leased
Land Buildings equipment equipment equipment Improvements Mask Total
Cost
Balance at January 1, 2024 $ 84,099 $ 341,041 $ 291,902 $ 36,144 $ 28,168 $ 24,732 $ 245,857 $1,051,943
Transfers to assets subject to
operating leases ( 4,314 ) ( 16,186 ) - - - - - ( 20,500 )
Increase - - 436 - 5,137 3,476 8,936 17,985
Reduce - - ( 1,218 ) ( 271 ) - - - ( 1,489 )
Effect of exchange rate
changes - 804 243 75 29 69 - 1,220
Balance at March 31, 2024 $ 79,785 $ 325,659 $ 291,363 $ 35,948 $ 33,334 $ 28,277 $ 254,793 $1,049,159
Accumulated depreciation
and impairment
Balance at January 1, 2024 $ - $ 62,689 $ 213,209 $ 30,793 $ 25,474 $ 20,357 $ 221,459 $ 573,981
Transfers to assets subject to
operating leases - ( 2,221 ) - - - - - ( 2,221 )
Increase - 2,649 6,129 800 571 416 5,718 16,283
Reduce - - ( 1,218 ) ( 264 ) - - - ( 1,482 )
Translation difference - 74 157 66 4 69 - 370
Balance at March 31, 2024 $ - $ 63,191 $ 218,277 $ 31,395 $ 26,049 $ 20,842 $ 227,177 $ 586,931
Carrying amounts at March
31, 2024 $ 79,785 $ 262,468 $ 73,086 $ 4,553 $ 7,285 $ 7,435 $ 27,616 $ 462,228
Carrying amounts at January
1, 2024 $ 84,099 $ 278,352 $ 78,693 $ 5,351 $ 2,694 $ 4,375 $ 24,398 $ 477,962
----- End of picture text -----

Cost Balance at January 1, 2023 Transfers to assets subject to operating leases Increase Reduce Reclassify to Pending Sale Translation difference Balance at March 31, 2023 Accumulated depreciation and impairment Balance at January 1, 2023 Transfers to assets subject to operating leases Increase Reduce Reclassify to Pending Sale Translation difference Carrying amounts at March 31, 2023 Carrying amounts at March 31, 2023		Land		Buildings $ 347,845 22,931 ) - - 7,055 ) 229 $ 318,088 $ 52,752 2,769 ) 2,581 - 971 ) 10 $ 51,603 $ 266,485	R&D equipment	Office equipment	Office equipment	Molding equipment	Molding equipment	Leased Improvements	Leased Improvements		Mask		Total
	( (	$ 86,200 6,111 ) - - 2,101 ) - $ 77,988 - - - - - - $ - $ 77,988	( ( ( (		$ 284,890 - 596 ( 8 ) - 72 $ 285,550 $ 188,290 - 4,541 ( 8 ) - 39 $ 192,862 $ 92,688		$ 35,386 - 406 - - 20 $ 35,812 $ 27,388 - 1,095 - - 15 $ 28,498 $ 7,314		$ 26,082 - - - - - $ 26,082 $ 24,610 - 206 - - - $ 24,816 $ 1,266		$ 26,192 - - - - 19 $ 26,211 $ 20,266 - 370 - - 19 $ 20,655 $ 5,556		$ 275,274 - 4,483 - - - $ 279,757 $ 239,033 - 6,787 - - - $ 245,820 $ 33,937	( ( ( ( ( (	$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

No impairment losses were recognized or reversed in the period from January 1 to March 31 of 2024 and 2023.

Assets leased under operating leases

Cost Balance as of January 1, 2024 From used by the Company itself Balance as of March 31, 2024 Accumulated depreciation Balance as of January 1, 2024 From used by the Company itself Depreciation Expense Balance as of March 31, 2024 Net amount on March 31, 2024 Net amount on December 31, 2023 and January 1,2024 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 Balance as of March 31, 2023		Land $ - 4,314 $ 4,314 $ - - - $ - $ 4,314 $ - $ - 6,111 $ 6,111 $ - - - $ - $ 6,111		Buildings $ - 16,186 $ 16,186 $ - 2,221 81 $ 2,302 $ 13,884 $ - $ - 22,931 $ 22,931 $ - 2,769 166 $ 2,935 $ 19,996		Total
						$ - 20,500 $ 20,500 $ - 2,221 81 $ 2,302 $ 18,198 $ - $ - 29,042 $ 29,042 $ - 2,769 166 $ 2,935 $ 26,107

The company leases parking spaces on an operating lease basis, with a lease period of one year. All operating lease contracts include a clause that the lessee will adjust the rent based on the market rent when exercising the right to renew the lease. The lessee does not have preferential purchase rights for the asset at the end of the lease period.

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

Used by the Assets leased under Company itself operating leases Buildings and structures 10 ~ 50 years 50 years R&D equipment 2 ~ 8 years - Office equipment 4 ~ 9 years - Molding equipment 3 years - Leased Improvements 2 ~ 6 years - Mask 2 ~ 3 years - March 31, 2024 December 31, 2023 March 31, 2023 Carrying amount of right-of-use assets Buildings $ 19,814 $ 20,748 $ 16,594 For the Three Months Ended March 31 2024 2023 Additions to right-of-use asset $ 2,143 $ - Depreciation expense of right-of-use assets Buildings $ 3,226 $ 3,144

XIII.Lease Agreement

(I) Right-of-use assets:

Besides the additions and depreciation disclosed above, there was no significant sublease transactions and indication of impairment for the three months ended March 31, 2024 and 2023.

(II)Lease liability

2023. ase liability
Carrying amount of lease liabilities Current Non-Current	March 31, 2024 $ 10,094 $ 9,798	December 31, 2023 $ 11,785 $ 9,529	March 31, 2023
				$ 11,487 $ 5,195

The discount rate for lease liabilities ranges as follows:

Buildings	March 31, 2024 1.96%~2.10%	December 31, 2023 1.96%~2.10%	March 31, 2023
			1.96%~2.10%

(III) Major leasing activities and terms

The Company has leased several buildings for office use for 3~5 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

ther Lease Information
Short-term lease charges Low-value asset leasing costs Total cash (outflow) from leases	For the Three Months		Ended March 31 2023
		2024 $ 145 $ 6 $ 3,987 )
	(		(	$ 399 $ 5 $ 3,828 )

The Company chooses to apply the recognition exemption to office equipment that qualifies as short-term lease and office equipment that qualifies as low-value asset lease, and doesn’t recognize related right-of-use assets and lease liabilities for these leases.

XIV. Intangible Assets

Cost Balance as of January 1, 2024 Increase Balance as of March 31, 2024 Cumulative amortization Balance as of January 1, 2024 Increase Balance as of March 31, 2024 Net amount on March 31, 2024 Carrying amounts at December 31,2023 and January 1, 2024 Cost Balance as of January 1, 2023 Increase Conversion adjustment Balance as of March 31, 2023 Cumulative amortization Balance as of January 1, 2023 Increase Conversion adjustment Balance as of March 31, 2023 Net amount on March 31, 2023		Computer Software $ 102,517 150 $ 102,667 $ 95,961 1,025 $ 96,986 $ 5,681 $ 6,556 $ 100,162 - 1 $ 100,163 $ 92,279 804 1 $ 93,084 $ 7,079		Specialized Technology	Right of Patent $ 8,383 - $ 8,383 $ 4,262 209 $ 4,471 $ 3,912 $ 4,121 $ 8,383 - - $ 8,383 $ 3,425 208 - $ 3,633 $ 4,750		Other $ 2,922 - $ 2,922 $ 2,922 - $ 2,922 $ - $ - $ 2,922 - - $ 2,922 $ 2,922 - - $ 2,922 $ -		Total
				$ 33,434 1,254 $ 34,688 $ 32,979 664 $ 33,643 $ 1,045 $ 455 $ 27,972 5,461 - $ 33,433 $ 26,984 1,818 - $ 28,802 $ 4,631					$ 147,256 1,404 $ 148,660 $ 136,124 1,898 $ 138,022 $ 10,638 $ 11,132 $ 139,439 5,461 1 $ 144,901 $ 125,610 2,830 1 $ 128,441 $ 16,460

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

Other Assets
Current Overpaid sales tax Prepayment for purchases Income tax refund receivable Temporary payments Refundable deposits Others Non-Current Refundable deposits Prepayment for equipment Other Current Liabilities Bonuses payable Unpaid leave benefits payable Premium payable Labor expenses payable Others	March 31, 2024 $ 7,284 4,496 1,732 492 - 7,496 $ 21,500 $ 3,506 42 $ 3,548 March 31, 2024 $ 11,165 4,424 3,876 3,791 22,874 $ 46,130	December 31, 2023 $ 4,522 4,396 813 1,408 - 8,071 $ 19,210 $ 3,483 4,264 $ 7,747 December 31, 2023 $ 38,349 5,687 3,853 3,296 24,074 $ 75,259	March 31, 2023
			$ - 4,934 1,783 6,020 15,000 9,273 $ 37,010 $ 3,777 7,057 $ 10,834 March 31, 2023
				$ 14,152 8,956 4,193 3,387 22,600 $ 53,288

XVI. Other Current Liabilities

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 $2,682 and $2,802 thousand for the three months ended March 31, 2024 and 2023, 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.

The Company reached an agreement with its employees in August 2023 to settle the seniority under the old system and settle pensions in accordance with relevant regulations, which was approved by the competent authority.

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

XVIII.Equity

(I)Capital stock

Common stock

Rated number of shares (thousands) Authorized stock Number of shares issued and fully paid up (thousands) Issued share capital	March 31, 2024 200,000 $ 2,000,000 58,900 $ 589,003	December 31, 2023 200,000 $ 2,000,000 58,918 $ 589,178	March 31, 2023 200,000 $ 2,000,000 56,852 $ 568,528

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

Capital 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	March 31, 2024 $ 254,672 84,732 132 49,645 $ 389,181	December 31, 2023 $ 254,672 84,732 125 50,306 $ 389,835	March 31, 2023
				$ 258,027 84,732 125 45,667 $ 388,551

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. 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 21 (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 2023 and 2022 are as follows:

Statutory surplus reserve Special reserve Cash dividends Stock dividends Cash dividend per share ($) Dividend per share ($)		2023 $ 2,887 $ 786 $ - $ 11,638 $ - $ 0.200		2022 $ 15,491 $ - $ 31,286 $ 17,065 $ 0.550 $ 0.300

In addition, on April 11, 2024, the board of directors of the Company decided to distribute cash dividends of $23,275 ($0.4 per share) from the capital reserves of 2023. Besides the cash dividend, the remaining surplus distribution items were also decided at the regular meeting of shareholders on May 28, 2024.

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

(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 Other comprehensive gains and losses in current year Balance at end of the year	For the Three Months Ended March 31 2024 2023
		2024
	(	$ 786) 5,733 5,733 $ 4,947	$ 5,602 1,330 1,330 $ 6,932

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 13, 2023 and June 9, 2022 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	2024 ( $ 35,803 ) 5,478 836 ( $ 29,489 )	2023
		( $ 31,945 ) 2,922 2,210 ( $ 26,813 )

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:

elow:
Date of approval by the shareholders’ meeting 2020/06/23 2020/06/23 2022/06/09 2023/06/13	Number of shares expected to be issued (thousand shares) 1,200 1,200 420 420	Number of shares resolved by the board of directors (thousand shares) 900 300 420 420	Grant date 2020/09/11 2021/08/03 2022/10/07 2023/10/06	Base date for capital increase 2020/11/06 2021/08/03 2022/10/12 2023/10/11	Number of actually issued shares (thousand shares) 900 300 420 420	Fair value on the grant date
						$ 34.35 122 47.1 66.5

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

Employees to whom restricted stock award shares have been allocated shall satisfy the Personal Performance requirement by obtaining the result of “Satisfactory” or above in the latest personal performance assessment prior to the vesting date.

If the employees still work at the Company upon expiration of any of the following vesting periods, they will receive award shares at the granting ratio as scheduled below:

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

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

Measures Taken for Employee Failing to Satisfy the Vesting Conditions:

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

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

For the Three Months Ended March 31,2024 Outstanding at the beginning of the year Granted weighted average fair value (NTD) For the Three Months Ended March 31,2023 Outstanding at the beginning of the year Recovered for the year Outstanding at the end of the year Granted weighted average fair value (NTD)	Employee restricted stock award shares for 2020-1 Unit (Thousand) 132.0 $ 34.35 424.5 ( 15.0) 409.5 $ 34.35	Employee restricted stock award shares for 2020-2	Employee restricted stock award shares for 2020-2
		Unit	(Thousand)
	(	(	105.0 $ 122 192.5 7.5) 185.0 $ 122

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

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

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

Vesting period Granting ratio
----- End of picture text -----

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

Measures Taken for Employees Failing to Satisfy the Vesting Conditions:

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

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

For the Three Months Ended March 31,2024 Outstanding at the beginning of the year Granted weighted average fair value (NTD) For the Three Months Ended March 31,2023 Outstanding at the beginning of the year Recovered for the year Outstanding at the end of the year Granted weighted average fair value (NTD)	Employee restricted stock award shares for 2022	Employee restricted stock award shares for 2022
		Unit(Thousand) 292.5 $ 47.1 420.0 ( 21.0) 399.0 $ 47.1
		(

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

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

Vesting period Granting ratio
From the grant date to Oct. 11 of the 1/6
----- End of picture text -----

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

Measures Taken for Employees Failing to Satisfy the Vesting Conditions:

(I) If the employees resigns, are dismissed or laid off, retire, die, take leave without pay or are transferred to any affiliated enterprise after the grant date and prior to the expiration of the vesting period, the Company will take back, without payment, the award shares that have been granted to the employees (for the current year) and have not vested in the employees.

(II) If the employees fail to meet the required personal performance immediately prior to the vesting date, the Company will take back, without payment, the award shares that have not vested in the employees that time.
(III) The employees are not entitled to any stocks, cash dividends or capital reserve allocated before the expiration of the vesting period.
(IV) If the employees terminate or cancel, before their satisfaction of the vesting conditions, the authorization given to the Company in violation of the rule saying that the trust contract or other similar agreements shall be negotiated, signed, revised, extended, cancelled or terminated, and the trust property shall be delivered, used and disposed, by the Company on behalf of the employees and the stock trust agency in the period for which restricted stock award shares are trusted, the Company shall take back, without payment, the award shares from the employees.
The restricted stock award shares taken back by the Company without payment will be revoked by the Company.

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

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

For the Three Months Ended March 31,2024 Outstanding at the beginning of the year Recovered for the year Outstanding at the end of the year Granted weighted average fair value (NTD)	Employee restricted stock award shares for 2023	Employee restricted stock award shares for 2023
	Unit(Thousand)
	(	420.0 9.0) 411.0 $ 66.5

Due to resignation of employees, 9 thousand and 43.5 thousand restricted stock award shares were recovered in 2024 and 2023 respectively, and there were 9 thousand and 22.5 thousand shares among such recovered shares to be revoked.

The compensation costs for the new shares with restricted option as recognized for the three months ended March 31 of 2024 and 2023 are $5,478 and $2,922 respectively.

XX.Operating Revenue

.Operating Revenue
Revenue from contracts with customers Integrated circuits (I)Contractual balance March 31, 2024 Revenue from customer contracts integrated circuit `（`Note 8`）` $ 227,086	For the Three Months Ended March 31 2024 2023 $311,084 $215,946 December 31,2023 March 31, 2023 January 1, 2023 $ 191,426 $ 141,179 $ 169,644

		$215,946 January 1, 2023 $ 169,644

(II) Itemized Revenue from Contracts with Customers
Itemized by Areas

For the Three Months Ended March 31

2024 2023 Mainland China $ 157,022 $ 106,699

Mainland China Taiwan (where the Company is located) Korea Other countries	$ 157,022 153,270 792 - $ 311,084	$ 106,699 105,458 398 3,391 $ 215,946

XXI.Net Profit of Operations

(I) Interest Income

erest Income
Bank deposits Commercial paper Deposit interest	For the Three Months Ended March 31 2024 2023 $ 1,257 $ 489 19 15 10 10 $ 1,286 $ 514
		2024 $ 1,257 19 10 $ 1,286

(II) Other Incomes

For the Three Months Ended March 31 2024 2023 Lease income Other operating leases $ 493 $ 615 Others 1,007 533

	$ 493 1,007 $ 1,500	$ 615 533 $ 1,148

(III) Other Gains and Losses

For the Three Months Ended March 31

2024 2023 Gains and losses on financial assets Financial asset at fair value through profit $ 413 $ 331 Net gain (loss) on foreign exchange 5,346 ( 834 ) Others ( 8 ) 564 $ 5,751 $ 61

(IV) Financial Cost

For the Three Months Ended March 31

2024 2023 Interest on lease liabilities $ 109 $ 98

$ 109 $ 98

(V) Depreciation and Amortization

For the Three Months Ended March 31

2024 2023

Depreciation expenses by functions: Operating cost Operating expenses Amortization expenses by functions: Operating cost Operating expenses	$ 4,655 14,935 $ 19,590 $ 253 1,645 $ 1,898	$ 3,651 15,239 $ 18,890 $ 297 2,533 $ 2,830

(VI) Employee Benefit Expenses

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 2024 2023 $ 2,682 $ 2,802 - 130 2,682 2,932 5,478 2,922 80,525 65,980 $ 88,685 $ 71,834 $ 12,159 $ 12,188 76,526 59,646 $ 88,685 $ 71,834
		2024 $ 2,682 - 2,682 5,478 80,525 $ 88,685 $ 12,159 76,526 $ 88,685

(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 2024 are as follows:

Estimated recognized proportion

2024 are as follows: Estimated recognized proportion
Employee remuneration Director's remuneration Amount Employee remuneration Director's remuneration		For the Three Months Ended March 31 2024 2023 15% - 1% - For the Three Months Ended March 31 2024 2023 1,863 $ - 175 $ -

		2024 1,863 175
	$
	$

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 2023 and 2022 were resolved by the Board on February 29, 2024 and March 16, 2023 respectively as follows:

Amount

Amount
Employee remuneration Director's remuneration	2023 Cash Share $ 5,197 $ - 489 -	2022
	Cash $ 5,197 489	Cash $ 32,060 2,581	Share
			$ - -

There is no difference between the actual amounts allocated for employee remuneration in 2023 and 2022 and the amounts recognized in the annual financial statements of 2023 and 2022. 。

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/loss in foreign currency exchange

Foreign currency exchange gains Foreign currency exchange loss Net (loss) profit		For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
			2024 $ 8,711 3,365) $ 5,346		2023
		(		( (	$ 2,020 2,854) $ 834 )

XXII. Income Tax

(I) Income tax recognized in profit and loss

The main components of income tax expense are listed below:

		For the Three Months Ended March 31 2024 2023 915 ) ( $ 169 ) 915 169 - $ -	For the Three Months Ended March 31 2024 2023 915 ) ( $ 169 ) 915 169 - $ -
		2024 915 ) 915 -
( $ $			( $ 169 ) 169 $ -
	$

(II) Approval of income tax

The Company's profit-seeking business income tax declaration cases as of 2022 have been approved by the tax authority.

XXIII. Earnings per share

Unit: $ per share

Basic earnings per share Diluted earnings per share	For	For	the Three Months Ended March 31	the Three Months Ended March 31	the Three Months Ended March 31
			2024 $ 0.18 $ 0.18		2023
				( (	$ 0.29 ) $ 0.29 )

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, 2023. 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:

Unit: $ per share

Before retroactive adjustment After retroactive adjustment For the Three Months Ended March 31 2023 2023	Before retroactive adjustment After retroactive adjustment For the Three Months Ended March 31 2023 2023	After retroactive adjustment

	2023
( (	$ 0.30 ) ( $ 0.30 ) (	$ 0.29) $ 0.29)

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

Net Profit of the Year

Net Profit of the Year
Net profit used to calculate basic and diluted 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 2024 2023 $ 10,351 ( $ 16,737 ) Unit: Thousand shares For the Three Months Ended March 31 2024 2023 57,951 57,548 562 - 49 - 58,562 57,548

		2024 57,951 562 49 58,562

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. 。

XXIV. 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.

XXV. Financial Instruments

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

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

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

Fair value hierarchy

value hierarchy
Mar 31, 2024 Financial assets measured at fair value through profit and loss Fund benefit certificate December 31, 2023 Financial assets measured at fair value through profit and loss Fund benefit certificate Mar 31, 2023 Financial assets measured at fair value through profit and loss Fund benefit certificate	Level 1 $ 61,565 Level 1 $ 83,823 Level 1 $ 78,410	Level 2 $ - Level 2 $ - Level 2 $ -	Level 3 $ - Level 3 $ - Level 3 $ -	Total
				$ 61,565 Total
				$ 83,823 Total
				$ 78,410

There was no transfer of fair value measurement between Class 1 and Class 2 in the period from January 1 to March 31 of 2024 and 2023.

(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	March31,2024	December31,2023 $ 83,823 457,745 191,426 3,483	March31,2023
	$ 61,565 409,923 227,086 3,506		$ 78,410 223,795 141,179 18,777

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Financial liabilities Measured at amortized cost Accounts payable Deposit received	March 31,2024 $ 101,100 4,482	December 31,2023 $ 107,636 860	March 31, 2023
			$ 58,175 1,051

(IV) Purpose and Policy of Financial Risk Management

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

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

1. Market Risk

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

The Company does not change the methods that it has adopted to manage and

measure risk exposure with respect to market risk for financial instruments.

(1) Currency Risk

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

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

For book amounts of monetary assets and monetary liabilities of the Company in non-functional currencies on the balance sheet date, please refer to Note 28.

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

Sensitivity Analysis

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

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

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Effect of USD Effect of CNY
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	Effect of USD Effect of CNY	Effect of USD Effect of CNY	Effect of USD Effect of CNY
Profit (loss) before tax	For the Three Months Ended March31 For the Three Months Ended March 31 2024 2023 2024 2023 $ 3,720 $ 2,855 $ 3,085 $ 2,722
	2024 $ 3,720	2024 $ 3,085	2023 $ 2,722

Effects mainly derived from the receivables and payables in USD and CNY which were still outstanding on the balance sheet date and of which the cash flows were not hedged by the Company.

The Company’s sensitivity to the USD exchange rate decreased for the current period. It was mostly because the balance of accounts payable in USD increased so that net USD assets decreased at the end of the year. Increase in sensitivity to the CNY exchange rate was mostly because cash and cash equivalents and accounts receivable in CYN increased so that net CNY assets increased at the end of the year.

(2)Interest Rate Risk

As consolidated entities of the Company possess fixed rate and floating rate assets, interest rate risk exposure is therefore incurred.

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

Interest rate risk in fair value `－`Financial assets `－`Financial liabilities	March 31,2024 $ 311,300 19,892	December 31, 2023 $ 342,700 21,314	March 31, 2023
			$ 149,145 16,682

Interest rate risk in cash flow `－`Financial assets	March 31,2024 $ 98,108	December 31,2023	March 31, 2023
		$ 114,426	$ 73,793

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 2024 and 2023 will increase/decrease by $25 thousands and $18 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, 2024, 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 keeps successful business operation and mitigates the impact of cash flow fluctuation by managing and maintaining sufficient cash and cash equivalents.

(1) Liquidity of Non-derivative Financial Liabilities

The table below shows the maturity analysis for the remaining contracts of non-derivative financial liabilities, which is conducted based on the undiscounted cash flows of financial liabilities, including cash flows of interest and principal, on the earliest date that the Company is requested to make the repayment.

March 31, 2024

Accounts payable Lease liabilities Other current liabilities		Payable upon demand or less than 1 month $ 63,920 $ 1,122 $ 11,168	1~3 months $ 37,180 $ 2,244 $ 4,340	3 months~ 1 year $ - $ 7,456 $ -		1~5 years $ - $ 10,005 $ -		Total $ 101,100 $ 20,827 $ 15,508

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

Less than 1 year 1 ～ 5 years Over 5 years Lease liabilities $ 10,822 $ 10,005 $ -

Dec. 31, 2023

Accounts payable Lease liabilities Other current liabilities	Payable upon demand or less than 1 month $ 66,255 $ 1,114 $ 13,175	1~3 months $ 41,381 $ 2,111 $ 5,613	3 months~ 1 year $ - $ 8,837 $ -	1~5 years $ - $ 9,754 $ -	Total $ 107,636 $ 21,816 $ 18,788

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

Less than 1 year 1 ～ 5 years Over 5 years Lease liabilities $ 12,062 $ 9,754 $ -

March 31, 2023

Accounts payable Lease liabilities Other current liabilities	Payable upon demand or less than 1 month $ 18,673 $ 1,081 $ 12,048	1~3 months $ 39,502 $ 2,123 $ 5,345	3 months~ 1 year $ - $ 8,617 $ -		1~5 years $ - $ 5,283 $ -		Total $ 58,175 $ 17,104 $ 17,393

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

Less than 1 year 1 ～ 5 years Over 5 years Lease liabilities $ 11,821 $ 5,283 $ -

XXIV.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

Short-term employee benefits Post-retirement benefits Share-based payment			For the Three Months Ended March 31 2023 2024	For the Three Months Ended March 31 2023 2024
			2023
		$ $	6,682 131 832 7,645	$ 7,266 254 736 $ 8,256

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

(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, 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.

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:

Unit:Thousands in each foreign currency

March 31, 2024

March 31, 2024		Unit:Thousands in each foreign currency	h foreign currency	h foreign currency
Foreigncurrency	Foreign currency $ 3,967 13,996 1,642 Foreign currency $ 4,808 11,569 2,180 Foreign currency $ 2,780 17 12,287 923	Exchange rate Book amount 32.000(USD:NTD) $ 126,935 4.408(CNY:NTD) 61,696 $ 188,631 32.000(USD:NTD) $ 52,544 Unit:Thousands in each foreign currency Exchange rate Book amount 30.705(USD:NTD) $ 147,642 4.327(CNY:NTD) 50,058 $ 197,700 30.705(USD:NTD) $ 66,952 Unit:Thousands in each foreign currency Exchange rate Book amount 30.450(USD:NTD) $ 84,651 6.872(USD:CNY) 555 4.431(CNY:NTD) 54,443 $ 139,649 30.450(USD:NTD) $ 28,108	Book amount
Monetary item USD CNY Foreign currency liabilities
Monetary item USD Dec. 31, 2023 Foreign currency assets Monetary item USD CNY Foreign currency liabilities Monetary item USD March 31, 2023 Foreign currency assets Monetary item USD USD CNY Foreign currency liabilities Monetary item USD
				$ 84,651 555 54,443 $ 139,649 $ 28,108

The realized and unrealized net foreign exchange (losses) gains for the Three Months Ended March 31, 2024 and 2023 was $ 5,346 thousand and ($834) thousand respectively. As foreign currency transactions are diversified, disclosing foreign exchange gains or losses based on each foreign currency with material impact is not feasible.

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.
Loans to others: none.
Endorse for another: none.
3.Securities holdings at the end of the period:

==> picture [427 x 105] intentionally omitted <==

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

End of the Period
Relationship with Number of
Class of Marketable
Carrying Shareholding Planned Remar
Holder Names of securities Securities Presented Items
shares or
Securities amount Ratio ％ Assets
Issuer
Unit
－ - $ 61,565 - $ 61,565 Note 1
LEADTREND Fund Fund B on Mainland China Financial assets measured
SHENZHEN Resources Yuanta Cash at fair value through
Connect Money Market profit and loss - current
----- End of picture text -----

Note 1: Based on net value as at March 31, 2024.

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, 2024.

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

For the Three Months Ended March 31 of 2024

No.	Name of Trader	Trading Party	Relationship (Note 2)	Transaction Information	Transaction Information	Transaction Information
				Item	Amount	Trading Condition	Ratio to total revenues or total assets
0 0	LEADTREND TECHNOLOGY CO. LTD. LEADTREND TECHNOLOGY CO. LTD.	LEADTREND TECHNOLOGY (SHENZHEN) CO. LTD. LEADTREND TECHNOLOGY (SHENZHEN) CO. LTD.	1 1	Sales revenue Accounts Receivable - related parties	$ 89,659 $60,763	Note 3 Note 3	29% 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.

(III) Information on investments in Mainland China:

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

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

==> picture [420 x 214] intentionally omitted <==

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

Unit: In thousands of NTD; in thousands of USD
Name of investee Mainland Chinacompany in Min business activities Paid-in capital Investment method remitted from Accumulated Taiwan at the beginning of investment the year amount remitted or recovered in Remitted Investment amount the year Remitted recovered in the Investment remitted or amount year profit (loss) company’s of the yearInvestee held by the Percentage investmentCompany of shares direct or through indirect Investment gain recognized for the year (Note (loss) 2) Ending book investment (Note 2) value of Investment of the yearTaiwan as of the end remitted back to gain
LEADTREND Computer $ 316,800 Note 1 $ 225,600 $ - $ $ 225,600 $ 21,307 100% $ 21,307 $ 260,193 $ -
TECHNOLOGY software ( USD ( USD7,050) ( USD - ) ( USD7,050) ( USD678) ( USD 678 ) ( USD8,131))
(SHENZHEN) CO. design 9,900)
LTD. service,
computer
system
integration
service,
wholesale of
integrated
circuits and
related
electronic
products, and
agent import
and export
business
activities
60% of net worth, the limit of
Accumulated investment amount remitted from Investment amount approved by
Taiwan to Mainland China at the end of the Investment Commission, Ministry of investment provided by Investment
year Economic Affairs Commission, Ministry of Economic Affairs
$225,600 (USD7,050) $316,800 (USD9,900) $998,718
----- End of picture text -----

Note1: The investment was made physically in Mainland China.

Note2: It was calculated based on the financial statements of the same accounting period audited by CPAs.

Note3: The figures in a foreign currency indicated in the table were converted into NT dollars at the exchange rate announced on the reporting date.

Note 4: As of March 31, 2013, Tongjia Company had an investment amount of US$9,900 approved by the Investment Review Committee of the Ministry of Economic Affairs, and had actually remitted US$7,050. The remaining uninvested amount has expired.

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 of Key Shareholders: Name of Shareholder Holding Over 5% of Equity, Number of Shares Held and Percentage of Shareholding:

Name of major shareholder	Shares	Shares
	Number of shares held	Percentage of shareholding (%)
Jie NengInvestment Co.,Ltd.	4,784,628	8.12

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 2024 and 2023, refer to the consolidated income statement for the period from January 1 to March 31 of 2024 and 2023. For the department's assets to be reported as of March 31, 2024 and March 31, 2023, refer to the consolidated balance sheet as of March 31, 2024 and March 31, 2023 respectively.

AI assistant

LD — Interim / Quarterly Report 2024

52348_rns_2024-11-13_5dfe7b8f-b921-43ee-8c82-4424b49c7aeb.pdf

Leadtrend Technology Corporation and Subsidiaries

Table of Contents

INDEPENDENT AUDITORS’ REVIEW REPORT

Introduction

Scope of Review

Conclusion

LEADTREND TECHNOLOGY CO. LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET

LEADTREND TECHNOLOGY CO. LTD. AND ITS SUBSIDIARIES CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(In Thousands of New Taiwan Dollars, Except Earnings Per Share) (Reviewed, Not Audited)

LEADTREND TECHNOLOGY CO. LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

LEADTREND TECHNOLOGY CO. LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENT 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, 2024 AND 2023 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise) (Reviewed, Not Audited)

I. History of Company

IV. Summary of Major Accounting Policies

(II) Preparation basis

(III) Consolidation basis

(IV) Other significant accounting policies

VI. Cash and Cash Equivalents

Aging analysis of net accounts receivable

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

XI. Subsidiary

(I) Subsidiaries incorporated into consolidated financial statements

XII. Real Estate, Plant and Equipment

Assets used by the Company

Assets leased under operating leases

XIII.Lease Agreement

(II)Lease liability

(III) Major leasing activities and terms

(IV) Other Lease Information

XIV. Intangible Assets

XV. Other Assets

XVI. Other Current Liabilities

XVII. Post-Retirement Welfare Plan

(I) Identified allocation plan

(II) Identified welfare plans

XVIII.Equity

(I)Capital stock

Common stock

(II) Capital reserves

(III) Retained earnings and dividend policy

(IV) Other rights and interests

XIX.Share-based payment

Stocks with restricted employee's option

XX.Operating Revenue

XXI.Net Profit of Operations

(IV) Financial Cost

(V) Depreciation and Amortization

(VI) Employee Benefit Expenses

(VII) Remuneration of employees and directors

Estimated recognized proportion

(VIII) Gains/loss in foreign currency exchange

XXII. Income Tax

(II) Approval of income tax

XXIII. Earnings per share

Net Profit of the Year

XXIV. Capital Risk Management

XXV. Financial Instruments

Fair value hierarchy

(III) Classification of financial instruments

(IV) Purpose and Policy of Financial Risk Management

1. Market Risk

Sensitivity Analysis

(2)Interest Rate Risk

Sensitivity analysis

2. Credit risk

3.Liquidity Risk

(1) Liquidity of Non-derivative Financial Liabilities

Dec. 31, 2023

March 31, 2023

XXIV.Transactions with Related Parties

XXVII.Major Contingent Liabilities and Unrecognized Contractual Commitments

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

March 31, 2024

XXIX. Matters Disclosed in Notes

For the Three Months Ended March 31 of 2024

(III) Information on investments in Mainland China:

LD Interim / Quarterly Report 2024