LD - Interim / Quarterly Report 2024

Stock Code: 3588

Leadtrend Technology Corporation and Subsidiaries

Consolidated Financial Statements for the Nine Months Ended Septemper 30, 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		6	-
		Income
VI.	Consolidated Statement of Changes in		7	-
		Equity
VII.	Consolidated Statement of Cash Flows		8-9	-
VIII.	Notes to Consolidated Financial Statements
(1)		History of Company	10	I.
(2)		Date and Procedure of Adopting	10	II.
		Financial Statements
(3)		Applicability of New and Amended	10-11	III.
		Standards and Interpretations
(4)		Summary of Material Accounting	11-13	IV.
		Policies
(5)		Material Accounting Judgments and	13	V.
		Key Sources of Estimation Uncertainty
(6)		Explanation of Important Accounting	13-40	VI.`～`XXV.
		Items
(7)		Transactions with Related Parties	41	XXVI.
(8)		Major Contingent Liabilities and	41	XXVII.
		Unrecognized Contractual
		Commitments
(9)		Significant Subsequent Events	-	-
(10)		Information on Foreign Currency	42-43	XXVIII.
		Assets and Liabilities with Significant
		Impact
(11)		Separately disclosed items
		1. Significant Transactions	43-44	XXIX.
		2. Information Relevant to	43-44	XXIX.
		Reinvestments
		3. Information on Investments in	44-45	XXIX.
		Mainland China
		4. Intercompany Relations And	44	XXIX.
		Significant Intercompany
		Transactions
		5. Information of Key Shareholders	45	XXIX.
(12)		Information of Segments	45	XXX.

INDEPENDENT AUDITORS’ REVIEW REPORT

The Board of Directors and Shareholders LEADTREND TECHNOLOGY CORPORATION

Introduction

We have reviewed the accompanying consolidated balance sheets of Leadtrend Technology Co.Ltd. and its subsidiaries (collectively referred to as the “Company”) as of September 30, 2024 and 2023, and the related consolidated statements of comprehensive income for the three months and nine months ended September 30, 2024 and 2023,as well as the changes in equity and cash flows for the nine months ended September 30, 2024 and 2023, and 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 Company as of September 30, 2024 and 2023, its consolidated financial performance for the three months and nine months ended September 30, 2024 and 2023, as well as cash flows for the nine months ended September 30, 2024 and 2023, in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard No. 34, “Interim Financial Reporting” as endorsed and became effective by 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 Mei-zhen Cai.

Deloitte & Touche Taipei, Taiwan Republic of China November 7, 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 CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET

(In Thousands of New Taiwan Dollars)

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September 30, 2024 December 31, 2023 September 30, 2023
Code Assets Amount ％ Amount ％ Amount ％
Current asset
1100 Cash and cash equivalents (Note 6) $ 522,574 25 $ 457,745 24 $ 396,589 22
1110 Financial Assets measured at fair value
through profit and loss - Current (Note 7) 91,053 4 83,823 5 36,697 2
1170 Notes and Accounts Receivable (Note 8) 267,630 13 191,426 10 199,511 11
130X Inventory (Note 9) 697,713 33 607,755 32 630,154 35
1470 Other current assets (Note 14) 18,827 1 19,210 1 19,015 1
11XX Total current assets 1,597,797 76 1,359,959 72 1,281,966 71
Non-Current Assets
1600 Property, plant and equipment (Note 11) 467,529 22 477,962 26 488,495 27
1755 Right-of-use assets (Note 12) 13,534 1 20,748 1 24,180 1
1780 Intangible assets (Note 13) 8,588 1 11,132 1 13,414 1
1840 Deferred tax assets - - 541 - - -
1990 Other non-current assets (Note 14) 5,772 - 7,747 - 7,005 -
15XX Total non-current assets 495,423 24 518,130 28 533,094 29
1XXX Total assets $ 2,093,220 100 $ 1,878,089 100 $ 1,815,060 100
Liabilities and Equity
Current liability
2170 Accounts payable $ 165,988 8 $ 107,636 6 $ 63,745 3
2200 Remuneration payable to staff and directors
(Note 21) 29,284 1 19,215 1 24,192 1
2230 Current tax liabilities （ Note 4 and 22 ） 8,619 1 10,844 - 14,551 1
2280 Current lease liabilities (Note 12) 6,316 - 11,785 1 12,341 1
2320 Long-term bank loan-current portion (Note 15) 5,833 - - - - -
2399 Other current liabilities (Note 16) 79,472 4 75,259 4 78,954 4
21XX Total current liabilities 295,512 14 224,739 12 193,783 10
Non-current liability
2540 Long-term bank loans (Note 15) 29,167 1 - - - -
2570 Deferred tax liabilities 284 - - - 421 -
2580 Lease liabilities - non-current (Note 12) 7,215 - 9,529 1 12,106 1
2645 Deposits received 10,845 1 860 - 945 -
25XX Total non-current liabilities 47,511 2 10,389 1 13,472 1
2XXX Total liabilities 343,023 16 235,128 13 207,255 11
Equity (Notes 18 and 19)
Share capital
3110 Common stock 600,291 29 589,178 31 585,368 32
Capital surplus
3210 Share premium 240,702 11 254,672 14 245,361 13
3251 Donations received from shareholders 84,732 4 84,732 4 84,732 5
3273 Restricted stock for employees 38,251 2 50,306 3 37,219 2
3280 Other 131 - 125 - 125 -
Retained earnings
3310 Legal reserve 218,171 11 215,284 11 215,284 12
3320 Special reserve 786 - - - - -
3350 Undistributed earnings 571,135 27 485,253 26 451,323 25
Other equity
3410 Exchange differences in conversion
of financial statements by foreign
operating institutions 13,884 1 ( 786 ) - 5,145 1
3491 Unearned compensation ( 17,886 ) ( 1 ) ( 35,803 ) ( 2 ) ( 16,752 ) ( 1 )
3XXX Total equity 1,750,197 84 1,642,961 87 1,607,805 89
Total liabilities and equity $ 2,093,220 100 $ 1,878,089 100 $ 1,815,060 100
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The notes below are an integral part of these consolidated financial statements.

LEADTREND TECHNOLOGY CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

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Three Months Ended September 30 Nine Months Ended September 30
2024 2023 2024 2023
Code Amount ％ Amount ％ Amount ％ Amount ％
Operating revenues
(Note 20)
4110 Sales revenue $ 437,041 102 $ 337,811 101 $1,136,111 102 $ 835,554 103
4170 Sales returns and
allowances ( 8,329 ) ( 2 ) ( 4,590 ) ( 1 ) ( 17,630 ) ( 2 ) ( 22,354 ) ( 3 )
4000 Net operating
revenue 428,712 100 333,221 100 1,118,481 100 813,200 100
Operating costs
(Notes 9, 17 and 21)
5110 Cost of goods sold 266,104 62 207,400 62 694,245 62 519,940 64
5900 Operating margin 162,608 38 125,821 38 424,236 38 293,260 36
Operating expenses
(Notes 17 and 21)
6100 Selling expenses 15,254 4 22,929 7 50,337 5 50,926 7
6200 Administrative expenses 27,331 6 28,144 8 87,877 8 73,894 9
6300 Research and development
expenses 72,527 17 75,047 23 205,848 18 203,874 25
6000 Total operating
expenses 115,112 27 126,120 38 344,062 31 328,694 41
6900 Net operating income (loss) 47,496 11 ( 299 ) - 80,174 7 ( 35,434 ) ( 5 )
Non-operating income and
expenses (Note 21)
7100 Interest income 1,417 - 809 1 4,571 1 2,162 -
7010 Other Income 923 - 508 - 3,909 - 2,219 1
7020 Other profits and losses 2,407 1 23,900 7 11,795 1 26,329 3
7050 Finance costs ( 124 ) - ( 122 ) - ( 401 ) - ( 342 ) -
7000 Total non-operating
income and
expenses 4,623 1 25,095 8 19,874 2 30,368 4
7900 Pre-tax net profit (loss) 52,119 12 24,796 8 100,048 9 ( 5,066 ) ( 1 )
7950 Income tax expense
(benefit ) (Notes 4 and 22) 5,978 1 - - ( 1,145 ) - - -
8200 Net profit (loss) for the year 46,141 11 24,796 8 101,193 9 ( 5,066 ) ( 1 )
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 ） 6,298 1 7,343 2 14,670 1 ( 457 ) -
8500 Total Comprehensive Income $ 52,439 12 $ 32,139 10 $ 115,863 10 ( $ 5,523 ) ( 1 )
Earings (loss) Per Share
(NT$, Note 23)
9750 Basic earnings (loss) per share $ 0.78 $ 0.42 $ 1.71 ( $ 0.09 )
9850 Diluted earnings (loss)
per share $ 0.77 $ 0.42 $ 1.69 ( $ 0.09 )
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The notes below are an integral part of these consolidated financial statements.

LEADTREND TECHNOLOGY CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

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

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Capital Stock - Common Stock Capital Surplus Retained Earnings Other equity items
Code
Donations Restricted Foreign Unearned
Shares received from stock for Undistributed Currency Total
(In Thousands) Amount Share premium shareholders employees Other Legal Reserve Special Reserve Earnings Total Translation Compensation Equity
Reserve
A1 Balance at 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
Distribution of 2022 retained earnings ：
B1 Legal reserve - - - - - - 15,491 - ( 15,491 ) - - - -
B5 Cash dividends to shareholders
–$0.550 per share - - - - - - - - ( 31,286 ) ( 31,286) - - ( 31,286 )
B9 Stock dividends to shareholders
- $0.300 per share 1,707 17,065 - - - - - - ( 17,065 ) ( 17,065 ) - - -
Total distribution of retained earnings 1,707 17,065 - - - - 15,491 - ( 63,842 ) ( 48,351 ) - - ( 31,286 )
C15 Cash dividends allocated from capital surplus -
0.350 per share - - ( 19,909) - - - - - - - - - ( 19,909 )
C17 Changes in other capital surplus - - - - - 19 - - - - - - 19
D1 Net loss for the nine months ended September 30,
2023 - - - - - - - - ( 5,066 ) ( 5,066 ) - - ( 5,066 )
D3 Other comprehensive (profit) losses from
January 1 to September 30, 2023 - - - - - - - - - - ( 457) - ( 457 )
D5 Total comprehensive income (loss) for the nine
months ended September 30, 2023 - - - - - - - - ( 5,066 ) ( 5,066 ) ( 457) - ( 5,523 )
N1 Acquired restricted stock for employees - - 7,243 - ( 7,243 ) - - - - - - - -
N1 Canceled restricted stock for employees ( 53 ) ( 535 ) - - 535 - - - - - - - -
N1 Compensation cost of restricted stock for employees - - - - ( 3,640 ) - - - - - - 15,193 11,553
Z1 Balance at September 30, 2023 58,537 $ 585,368 $ 245,361 $ 84,732 $ 37,219 $ 125 $ 215,284 $ - $ 451,323 $ 666,607 $ 5,145 ( $ 16,752) $ 1,607,805
A1 Balance at 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
Distribution of 2023 retained earnings ：
B1 Legal reserve - - - - - - 2,887 - ( 2,887 ) - - - -
B3 Special reserve - - - - - - - 786 ( 786 ) - - - -
B9 Stock dividends to shareholders
- $0.200 per share 1,164 11,638 - - - - - - ( 11,638 ) ( 11,638 ) - - -
Total distribution of retained earnings 1,164 11,638 - - - - 2,887 786 ( 15,311 ) ( 11,638 ) - - -
C15 Cash dividends allocated from capital surplus - - - ( 23,275 ) - - - - - - - - - ( 23,275 )
0.400 per share
C17 Changes in other capital surplus - - - - - 6 - - - - - - 6
D1 Net profit for the nine months ended September 30,
2024 - - - - - - - - 101,193 101,193 - - 101,193
D3 Other comprehensive income for the nine months
ended September 30, 2024 - - - - - - - - - - 14,670 - 14,670
D5 Total comprehensive income for the nine months
ended September 30, 2024 - - - - - - - - 101,193 101,193 14,670 - 115,863
N1 Acquired restricted stock for employees - - 9,305 - ( 9,305 ) - - - - - - - -
N1 Canceled restricted stock for employees ( 53 ) ( 525 ) - - 525 - - - - - - - -
N1 Compensation cost of restricted stock for employees - - - - ( 3,275 ) - - - - - - 17,917 14,642
Z1 Balance at September 30, 2024 60,029 $ 600,291 $ 240,702 $ 84,732 $ 38,251 $ 131 $ 218,171 $ 786 $ 571,135 $ 790,092 $ 13,884 ( $ 17,886) $ 1,750,197
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The notes below are an integral part of these consolidated financial statements.

LEADTREND TECHNOLOGY CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS

(In Thousands of New Taiwan Dollars)

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Nine Months Ended September 30
Code 2024 2023
Cash flow from operating activities
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A10000	Pre-tax net profit		100,048	( $	5,066 )
A20010	Adjustments for:
A20100	Depreciation expense		57,121		66,540
A20200	Amortization expense		5,028		7,936
A20400	Net gain on financial assets or
	liabilities at fair value through
	profit or loss	(	1,151 )	(	838 )
A20900	Finance costs		401		342
A21200	Interest incomes	(	4,571 )	(	2,162 )
A21900	Compensation cost on restricted
	stock for employees		14,642		11,553
A22500	Loss (gain) on disposal of property,
	plant and equipment		8	(	1,843 )
A23700	Write-down of inventories		3,705		13,433
A24100	Unrealized foreign exchange gain	(	6,731 )	(	919 )
A30000	Net changes in operating assets and
	liabilities
A31150	Notes and accounts receivable	(	72,923 )	(	26,656 )
A31200	Inventories	(	93,663 )		164,417
A31240	Other current assets		3,302		2,493
A32150	Accounts payable		58,221	(	983 )
A32200	Remuneration payable to
	staff and directors		10,069	(	13,316 )
A32230	Other current liabilities		936	(	15,288 )
A32240	Net defined benefit liability		-	(	4,840)
A33000	Cash generated from operations		74,442		194,803
A33300	Interest paid	(	401 )	(	342 )
A33500	Income tax paid	(	3,187)	(	57)
AAAA	Net cash generated by operating
	activities		70,854		194,404

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Cash flow from investment activities B00100 Acquisition of financial assets at fair value through profit or loss B00200 Proceeds from disposal of financial assets at fair value through profit or loss B02700 Acquisition of property, plant and equipment B02800 Proceeds from disposal of property, plant and equipment B03700 Increase in refundable deposits B04500 Acquisition of intangible assets B07500 Interest received BBBB Net cash outflows from investment activities Cash flows from financing activities C00100 Increase in short-term loans C00200 Decrease in short-term loans C01600 Proceeds from long-term debt C03000 Increase in guarantee deposits received C04020 Payments of lease liabilities C04500 Cash dividends paid C09900 Other financing activities CCCC Net cash outflow to financing activities DDDD Effect of exchange rate changes on cash and cash equivalents EEEE Net increase in cash and cash equivalents E00100 Cash and cash equivalents at beginning of period E00200 Cash and cash equivalents at end of period		Nine Months Ended September 30 2024 2023 $ 72,368 ) ( $ 57,395 ) 70,107 77,263 29,498 ) ( 25,772 ) - 10,395 191 ) 15,262 2,484 ) ( 7,521 ) 4,584 2,061 29,850) 14,293 30,000 - 30,000 ) - 35,000 - 9,985 31 10,374 ) ( 9,892 ) 23,275 ) ( 51,195 ) 6 19 11,342 ( 61,037) 12,483 ( 1,751) 64,829 145,909 457,745 250,680 $ 522,574 $ 396,589	Nine Months Ended September 30 2024 2023 $ 72,368 ) ( $ 57,395 ) 70,107 77,263 29,498 ) ( 25,772 ) - 10,395 191 ) 15,262 2,484 ) ( 7,521 ) 4,584 2,061 29,850) 14,293 30,000 - 30,000 ) - 35,000 - 9,985 31 10,374 ) ( 9,892 ) 23,275 ) ( 51,195 ) 6 19 11,342 ( 61,037) 12,483 ( 1,751) 64,829 145,909 457,745 250,680 $ 522,574 $ 396,589
	( ( ( ( ( ( ( (		( $ 57,395 ) 77,263 ( 25,772 ) 10,395 15,262 ( 7,521 ) 2,061 14,293 - - - 31 ( 9,892 ) ( 51,195 ) 19 ( 61,037) ( 1,751) 145,909 250,680 $ 396,589

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

LEADTREND TECHNOLOGY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

I. History of Company

Leadtrend Technology Corporation (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 November 7, 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) IFRS approved by the Financial Supervisory Commission applicable in 2025.

Newly issued/amended/revised criteria and Effective date of IASB interpretations issued Amendment to IAS 21 "Lack of Exchangeability" January 1, 2025 (Note 1)

Note1: Applicable to annual reporting periods starting after January 1, 2025. When this amendment is applied for the first time, the comparative period shall not be restated, but the impact shall be recognized in the retained earnings or exchange differences of foreign operating institutions under equity (as appropriate) on the date of initial application and the related affected assets and liabilities.
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(III) 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)
Annual Improvement of IFRS Accounting Standards January 1, 2026
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Newly issued/amended/revised criteria and interpretations Annual Improvement of IFRS Accounting Standards	Effective date of IASB issued (Note 1) January 1, 2026
- Volume 11"
Amendments to IFRS 9 and IFRS 7 “Amendments to	January 1, 2026
the Classification and Measurement of Financial
Instruments”
Amendments to IFRS 10 and IAS 28 "Sale or	TBD
Contribution 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 "Initial Application of IFRS	January 1, 2023
17 and IFRS 9- Comparative Information"
IFRS 18 "Presentation and Disclosure in Financial	January 1, 2027
Statements "
IFRS 19 "Subsidiaries without publicly accountable:	January 1, 2027
Disclosure"

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.

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 Material Accounting Policies

(I) Statement of compliance

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) Basis of preparation

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.

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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) Basis of consolidation
These consolidated financial statements cover the financial statements of the Company and the entities under its control (i.e. subsidiaries). The financial statements of the subsidiaries has been adjusted to bring their accounting policies in line with those of the Company. In the preparation of consolidated financial statements, all transactions between individual affiliates, account balances, gains and losses have been wiped out.
Please refer to Notes 10 and 29 for details on the subsidiaries, shareholding ratios and operating items.
(IV) Other material 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.

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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

Cash and Cash Equivalents
Foreign currency deposits Checking accounts and demand deposits Petty cash and cash on hand Cash equivalents Time deposits Commercial paper	September 30,2024 $ 84,923 66,447 504 350,700 20,000 $ 522,574	December 31,2023		September 30,2023
			$ 63,089 51,337 619 342,700 - $ 457,745		$ 76,382 81,240 867 238,100 - $ 396,589

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

September 30, 2024 Bank deposit 0.03%~3.93% Financial Assets at fair value through profit or loss September 30, 2024 Financial Assets-Current Non-derivative financial assets at fair value compulsively through profit or loss - Fund beneficiary certificate $ 91,053 Notes and Accounts Receivable September 30, 2024 Notes receivable Measured at amortized cost Total carrying amount $ 58,790 Accounts receivable Measured at amortized cost Total carrying amount $ 208,840	September 30, 2023	September 30, 2023
	0.1%~1.58% September 30, 2023
Financial Assets-Current Non-derivative financial assets at fair value compulsively through profit or loss - Fund beneficiary certificate Notes and Accounts Receivable Notes receivable Measured at amortized cost Total carrying amount Accounts receivable Measured at amortized cost Total carrying amount
	$ 36,697 September 30, 2023
		$ 24,764 $ 174,747

VII. Financial Assets at fair value through profit or loss

VIII. Notes and Accounts Receivable

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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 ntory Finished goods Work in process Raw materials	September 30, 2024 $ 208,840 September 30, 2024 $ 104,094 399,824 193,795 $ 697,713	December 31, 2023 $ 168,744 December 31, 2023 $ 91,849 351,405 164,501 $ 607,755	September 30, 2023 $ 174,747 September 30, 2023	September 30, 2023 $ 174,747 September 30, 2023
				$ 95,335 371,841 162,978 $ 630,154

IX. Inventory

14 -

The inventory-related cost of goods sold in the period from July 1 to September 30 of 2024 and 2023 , and from January 1 to September 30 of 2024 and 2023 were $266,104, $207,400, $694,245 and $519,940 respectively.

The cost of goods sold in the period from July 1 to September 30 of 2024 and 2023 , and from January 1 to September 30 of 2024 and 2023 including losses on inventory decline and stagnation were $5,471, ($1,427), $3,705, and $13,433 respectively.

The increase in the net realizable value of inventory from July 1 to September 30, 2023 was due to the scrapping of the inventory.

X. Subsidiary

(I) Subsidiaries incorporated into consolidated financial statements

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

==> picture [425 x 56] intentionally omitted <==

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

Percentage of Holdings
Name of
company Name of September December September
invested in Subsidiary Nature of business 30, 2024 31, 2023 30, 2023 NOTE
Leadtrend Leadtrend Various investment - - - 1 、 2
----- End of picture text -----

company invested in Leadtrend	Name of Subsidiary Leadtrend	Nature of business Various investment	September 30, 2024 -	December 31, 2023 -	September 30, 2023 -	NOTE 1`、`2
Technology	Technology	business
Corporation	(Samoa) Limited
	Leadtrend	Computer software	100%	100%	100%	`－`
	Technology (Shenzhen) Ltd. ("Leadtrend Shenzhen")	design service, computer system integration service, wholesale
		of integrated
		circuits and
		related electronic
		products, and
		agent import and
		export business
		activities.

NOTE 1 ： As of September 30, 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.
15 -

Property, Plant and Equipment September 30, 2024 Assets used by the Company $ 460,765 Assets subject to operating leases 6,764 $ 467,529 ( Ⅰ )Assets used by the Company Land Buildings R&D equipment Office equipment Cost Balance at January 1, 2024 $ 84,099 $ 341,041 $ 291,902 $ 36,144 Transfers to assets subject to operating leases ( 1,618 ) ( 6,070 ) - - Additions - - 1,314 3,566 Disposals - - ( 1,306 ) ( 347 ) Effect of exchange rate changes - 1,946 595 182 Balance at September 30, 2024 $ 82,481 $ 336,917 $ 292,505 $ 39,545 Accumulated depreciation and impairment Balance at January 1, 2024 $ - $ 62,689 $ 213,209 $ 30,793 Transfers to assets subject to operating leases - ( 833 ) - - Additions - 8,122 18,103 2,306 Disposals - - ( 1,306 ) ( 339 ) Effect of exchange rate changes - 193 396 160 Balance at September 30, 2024 $ - $ 70,171 $ 230,402 $ 32,920 Carrying amount at September 30, 2024 $ 82,481 $ 266,746 $ 62,103 $ 6,625 Carrying amount at December 31, 2023 and January 1,2024 $ 84,099 $ 266,746 $ 78,693 $ 5,351 Land Buildings R&D equipment Office equipment Cost Balance at January 1, 2023 $ 86,200 $ 347,845 $ 284,890 $ 35,386 Transfers to assets subject to operating leases ( 5,064 ) ( 19,001 ) - - Additions - - 7,534 912 Disposals ( 2,101 ) ( 7,055 ) ( 185 ) ( 202 ) Effect of exchange rate changes - 70 22 5 Balance at September 30, 2023 $ 79,035 $ 321,859 $ 292,261 $ 36,101 Accumulated depreciation and impairment Balance at January 1, 2023 $ - $ 52,752 $ 188,290 $ 27,388 Transfers to assets subject to operating leases - ( 2,183 ) - - Additions - 7,905 19,219 2,842 Disposals - ( 983 ) ( 185 ) ( 188 ) Effect of exchange rate changes - 10 18 6 Balance at September 30, 2023 $ - $ 57,501 $ 207,342 $ 30,048 Carrying amount at September 30, 2023 $ 79,035 $ 264,358 $ 84,919 $ 6,053	Property, Plant and Equipment September 30, 2024 Assets used by the Company $ 460,765 Assets subject to operating leases 6,764 $ 467,529 ( Ⅰ )Assets used by the Company Land Buildings R&D equipment Office equipment Cost Balance at January 1, 2024 $ 84,099 $ 341,041 $ 291,902 $ 36,144 Transfers to assets subject to operating leases ( 1,618 ) ( 6,070 ) - - Additions - - 1,314 3,566 Disposals - - ( 1,306 ) ( 347 ) Effect of exchange rate changes - 1,946 595 182 Balance at September 30, 2024 $ 82,481 $ 336,917 $ 292,505 $ 39,545 Accumulated depreciation and impairment Balance at January 1, 2024 $ - $ 62,689 $ 213,209 $ 30,793 Transfers to assets subject to operating leases - ( 833 ) - - Additions - 8,122 18,103 2,306 Disposals - - ( 1,306 ) ( 339 ) Effect of exchange rate changes - 193 396 160 Balance at September 30, 2024 $ - $ 70,171 $ 230,402 $ 32,920 Carrying amount at September 30, 2024 $ 82,481 $ 266,746 $ 62,103 $ 6,625 Carrying amount at December 31, 2023 and January 1,2024 $ 84,099 $ 266,746 $ 78,693 $ 5,351 Land Buildings R&D equipment Office equipment Cost Balance at January 1, 2023 $ 86,200 $ 347,845 $ 284,890 $ 35,386 Transfers to assets subject to operating leases ( 5,064 ) ( 19,001 ) - - Additions - - 7,534 912 Disposals ( 2,101 ) ( 7,055 ) ( 185 ) ( 202 ) Effect of exchange rate changes - 70 22 5 Balance at September 30, 2023 $ 79,035 $ 321,859 $ 292,261 $ 36,101 Accumulated depreciation and impairment Balance at January 1, 2023 $ - $ 52,752 $ 188,290 $ 27,388 Transfers to assets subject to operating leases - ( 2,183 ) - - Additions - 7,905 19,219 2,842 Disposals - ( 983 ) ( 185 ) ( 188 ) Effect of exchange rate changes - 10 18 6 Balance at September 30, 2023 $ - $ 57,501 $ 207,342 $ 30,048 Carrying amount at September 30, 2023 $ 79,035 $ 264,358 $ 84,919 $ 6,053	Property, Plant and Equipment September 30, 2024 Assets used by the Company $ 460,765 Assets subject to operating leases 6,764 $ 467,529 ( Ⅰ )Assets used by the Company Land Buildings R&D equipment Office equipment Cost Balance at January 1, 2024 $ 84,099 $ 341,041 $ 291,902 $ 36,144 Transfers to assets subject to operating leases ( 1,618 ) ( 6,070 ) - - Additions - - 1,314 3,566 Disposals - - ( 1,306 ) ( 347 ) Effect of exchange rate changes - 1,946 595 182 Balance at September 30, 2024 $ 82,481 $ 336,917 $ 292,505 $ 39,545 Accumulated depreciation and impairment Balance at January 1, 2024 $ - $ 62,689 $ 213,209 $ 30,793 Transfers to assets subject to operating leases - ( 833 ) - - Additions - 8,122 18,103 2,306 Disposals - - ( 1,306 ) ( 339 ) Effect of exchange rate changes - 193 396 160 Balance at September 30, 2024 $ - $ 70,171 $ 230,402 $ 32,920 Carrying amount at September 30, 2024 $ 82,481 $ 266,746 $ 62,103 $ 6,625 Carrying amount at December 31, 2023 and January 1,2024 $ 84,099 $ 266,746 $ 78,693 $ 5,351 Land Buildings R&D equipment Office equipment Cost Balance at January 1, 2023 $ 86,200 $ 347,845 $ 284,890 $ 35,386 Transfers to assets subject to operating leases ( 5,064 ) ( 19,001 ) - - Additions - - 7,534 912 Disposals ( 2,101 ) ( 7,055 ) ( 185 ) ( 202 ) Effect of exchange rate changes - 70 22 5 Balance at September 30, 2023 $ 79,035 $ 321,859 $ 292,261 $ 36,101 Accumulated depreciation and impairment Balance at January 1, 2023 $ - $ 52,752 $ 188,290 $ 27,388 Transfers to assets subject to operating leases - ( 2,183 ) - - Additions - 7,905 19,219 2,842 Disposals - ( 983 ) ( 185 ) ( 188 ) Effect of exchange rate changes - 10 18 6 Balance at September 30, 2023 $ - $ 57,501 $ 207,342 $ 30,048 Carrying amount at September 30, 2023 $ 79,035 $ 264,358 $ 84,919 $ 6,053	Property, Plant and Equipment September 30, 2024 Assets used by the Company $ 460,765 Assets subject to operating leases 6,764 $ 467,529 ( Ⅰ )Assets used by the Company Land Buildings R&D equipment Office equipment Cost Balance at January 1, 2024 $ 84,099 $ 341,041 $ 291,902 $ 36,144 Transfers to assets subject to operating leases ( 1,618 ) ( 6,070 ) - - Additions - - 1,314 3,566 Disposals - - ( 1,306 ) ( 347 ) Effect of exchange rate changes - 1,946 595 182 Balance at September 30, 2024 $ 82,481 $ 336,917 $ 292,505 $ 39,545 Accumulated depreciation and impairment Balance at January 1, 2024 $ - $ 62,689 $ 213,209 $ 30,793 Transfers to assets subject to operating leases - ( 833 ) - - Additions - 8,122 18,103 2,306 Disposals - - ( 1,306 ) ( 339 ) Effect of exchange rate changes - 193 396 160 Balance at September 30, 2024 $ - $ 70,171 $ 230,402 $ 32,920 Carrying amount at September 30, 2024 $ 82,481 $ 266,746 $ 62,103 $ 6,625 Carrying amount at December 31, 2023 and January 1,2024 $ 84,099 $ 266,746 $ 78,693 $ 5,351 Land Buildings R&D equipment Office equipment Cost Balance at January 1, 2023 $ 86,200 $ 347,845 $ 284,890 $ 35,386 Transfers to assets subject to operating leases ( 5,064 ) ( 19,001 ) - - Additions - - 7,534 912 Disposals ( 2,101 ) ( 7,055 ) ( 185 ) ( 202 ) Effect of exchange rate changes - 70 22 5 Balance at September 30, 2023 $ 79,035 $ 321,859 $ 292,261 $ 36,101 Accumulated depreciation and impairment Balance at January 1, 2023 $ - $ 52,752 $ 188,290 $ 27,388 Transfers to assets subject to operating leases - ( 2,183 ) - - Additions - 7,905 19,219 2,842 Disposals - ( 983 ) ( 185 ) ( 188 ) Effect of exchange rate changes - 10 18 6 Balance at September 30, 2023 $ - $ 57,501 $ 207,342 $ 30,048 Carrying amount at September 30, 2023 $ 79,035 $ 264,358 $ 84,919 $ 6,053	Property, Plant and Equipment September 30, 2024 Assets used by the Company $ 460,765 Assets subject to operating leases 6,764 $ 467,529 ( Ⅰ )Assets used by the Company Land Buildings R&D equipment Office equipment Cost Balance at January 1, 2024 $ 84,099 $ 341,041 $ 291,902 $ 36,144 Transfers to assets subject to operating leases ( 1,618 ) ( 6,070 ) - - Additions - - 1,314 3,566 Disposals - - ( 1,306 ) ( 347 ) Effect of exchange rate changes - 1,946 595 182 Balance at September 30, 2024 $ 82,481 $ 336,917 $ 292,505 $ 39,545 Accumulated depreciation and impairment Balance at January 1, 2024 $ - $ 62,689 $ 213,209 $ 30,793 Transfers to assets subject to operating leases - ( 833 ) - - Additions - 8,122 18,103 2,306 Disposals - - ( 1,306 ) ( 339 ) Effect of exchange rate changes - 193 396 160 Balance at September 30, 2024 $ - $ 70,171 $ 230,402 $ 32,920 Carrying amount at September 30, 2024 $ 82,481 $ 266,746 $ 62,103 $ 6,625 Carrying amount at December 31, 2023 and January 1,2024 $ 84,099 $ 266,746 $ 78,693 $ 5,351 Land Buildings R&D equipment Office equipment Cost Balance at January 1, 2023 $ 86,200 $ 347,845 $ 284,890 $ 35,386 Transfers to assets subject to operating leases ( 5,064 ) ( 19,001 ) - - Additions - - 7,534 912 Disposals ( 2,101 ) ( 7,055 ) ( 185 ) ( 202 ) Effect of exchange rate changes - 70 22 5 Balance at September 30, 2023 $ 79,035 $ 321,859 $ 292,261 $ 36,101 Accumulated depreciation and impairment Balance at January 1, 2023 $ - $ 52,752 $ 188,290 $ 27,388 Transfers to assets subject to operating leases - ( 2,183 ) - - Additions - 7,905 19,219 2,842 Disposals - ( 983 ) ( 185 ) ( 188 ) Effect of exchange rate changes - 10 18 6 Balance at September 30, 2023 $ - $ 57,501 $ 207,342 $ 30,048 Carrying amount at September 30, 2023 $ 79,035 $ 264,358 $ 84,919 $ 6,053	Property, Plant and Equipment September 30, 2024 Assets used by the Company $ 460,765 Assets subject to operating leases 6,764 $ 467,529 ( Ⅰ )Assets used by the Company Land Buildings R&D equipment Office equipment Cost Balance at January 1, 2024 $ 84,099 $ 341,041 $ 291,902 $ 36,144 Transfers to assets subject to operating leases ( 1,618 ) ( 6,070 ) - - Additions - - 1,314 3,566 Disposals - - ( 1,306 ) ( 347 ) Effect of exchange rate changes - 1,946 595 182 Balance at September 30, 2024 $ 82,481 $ 336,917 $ 292,505 $ 39,545 Accumulated depreciation and impairment Balance at January 1, 2024 $ - $ 62,689 $ 213,209 $ 30,793 Transfers to assets subject to operating leases - ( 833 ) - - Additions - 8,122 18,103 2,306 Disposals - - ( 1,306 ) ( 339 ) Effect of exchange rate changes - 193 396 160 Balance at September 30, 2024 $ - $ 70,171 $ 230,402 $ 32,920 Carrying amount at September 30, 2024 $ 82,481 $ 266,746 $ 62,103 $ 6,625 Carrying amount at December 31, 2023 and January 1,2024 $ 84,099 $ 266,746 $ 78,693 $ 5,351 Land Buildings R&D equipment Office equipment Cost Balance at January 1, 2023 $ 86,200 $ 347,845 $ 284,890 $ 35,386 Transfers to assets subject to operating leases ( 5,064 ) ( 19,001 ) - - Additions - - 7,534 912 Disposals ( 2,101 ) ( 7,055 ) ( 185 ) ( 202 ) Effect of exchange rate changes - 70 22 5 Balance at September 30, 2023 $ 79,035 $ 321,859 $ 292,261 $ 36,101 Accumulated depreciation and impairment Balance at January 1, 2023 $ - $ 52,752 $ 188,290 $ 27,388 Transfers to assets subject to operating leases - ( 2,183 ) - - Additions - 7,905 19,219 2,842 Disposals - ( 983 ) ( 185 ) ( 188 ) Effect of exchange rate changes - 10 18 6 Balance at September 30, 2023 $ - $ 57,501 $ 207,342 $ 30,048 Carrying amount at September 30, 2023 $ 79,035 $ 264,358 $ 84,919 $ 6,053	December 31, 2023 September 30, 2023 $ 477,962 $ 466,935 - 21,560 $ 477,962 $ 488,495 Molding equipment Leased Improvements Mask Total $ 28,168 $ 24,732 $ 245,857 $ 1,051,943 - - - ( 7,688 ) 5,271 3,720 21,063 34,934 - - - ( 1,653 ) 69 166 - 2,958 $ 33,508 $ 28,618 $ 266,920 $ 1,080,494 $ 25,474 $ 20,357 $ 221,459 $ 573,981 - - - ( 833 ) 1,952 1,430 15,372 47,285 - - - ( 1,645 ) 26 166 - 941 $ 27,452 $ 21,953 $ 236,831 $ 619,729 $ 6,056 $ 6,665 $ 30,089 $ 460,765 $ 2,694 $ 4,375 $ 24,398 $ 477,962 Molding equipment Leased Improvements Mask Total $ 26,082 $ 26,192 $ 275,274 $ 1,081,869 - - - ( 24,065 ) - 121 15,527 24,094 - ( 1,512 ) ( 49,480 ) ( 60,535 ) - 6 - 103 $ 26,082 $ 24,807 $ 241,321 $ 1,021,466 $ 24,610 $ 20,266 $ 239,033 $ 552,339 - - - ( 2,183 ) 617 1,029 24,706 56,318 - ( 1,146 ) ( 49,481 ) ( 51,983 ) - 6 - 40 $ 25,227 $ 20,155 $ 214,258 $ 554,531 $ 855 $ 4,652 $ 27,063 $ 466,935	December 31, 2023 September 30, 2023 $ 477,962 $ 466,935 - 21,560 $ 477,962 $ 488,495 Molding equipment Leased Improvements Mask Total $ 28,168 $ 24,732 $ 245,857 $ 1,051,943 - - - ( 7,688 ) 5,271 3,720 21,063 34,934 - - - ( 1,653 ) 69 166 - 2,958 $ 33,508 $ 28,618 $ 266,920 $ 1,080,494 $ 25,474 $ 20,357 $ 221,459 $ 573,981 - - - ( 833 ) 1,952 1,430 15,372 47,285 - - - ( 1,645 ) 26 166 - 941 $ 27,452 $ 21,953 $ 236,831 $ 619,729 $ 6,056 $ 6,665 $ 30,089 $ 460,765 $ 2,694 $ 4,375 $ 24,398 $ 477,962 Molding equipment Leased Improvements Mask Total $ 26,082 $ 26,192 $ 275,274 $ 1,081,869 - - - ( 24,065 ) - 121 15,527 24,094 - ( 1,512 ) ( 49,480 ) ( 60,535 ) - 6 - 103 $ 26,082 $ 24,807 $ 241,321 $ 1,021,466 $ 24,610 $ 20,266 $ 239,033 $ 552,339 - - - ( 2,183 ) 617 1,029 24,706 56,318 - ( 1,146 ) ( 49,481 ) ( 51,983 ) - 6 - 40 $ 25,227 $ 20,155 $ 214,258 $ 554,531 $ 855 $ 4,652 $ 27,063 $ 466,935	December 31, 2023 September 30, 2023 $ 477,962 $ 466,935 - 21,560 $ 477,962 $ 488,495 Molding equipment Leased Improvements Mask Total $ 28,168 $ 24,732 $ 245,857 $ 1,051,943 - - - ( 7,688 ) 5,271 3,720 21,063 34,934 - - - ( 1,653 ) 69 166 - 2,958 $ 33,508 $ 28,618 $ 266,920 $ 1,080,494 $ 25,474 $ 20,357 $ 221,459 $ 573,981 - - - ( 833 ) 1,952 1,430 15,372 47,285 - - - ( 1,645 ) 26 166 - 941 $ 27,452 $ 21,953 $ 236,831 $ 619,729 $ 6,056 $ 6,665 $ 30,089 $ 460,765 $ 2,694 $ 4,375 $ 24,398 $ 477,962 Molding equipment Leased Improvements Mask Total $ 26,082 $ 26,192 $ 275,274 $ 1,081,869 - - - ( 24,065 ) - 121 15,527 24,094 - ( 1,512 ) ( 49,480 ) ( 60,535 ) - 6 - 103 $ 26,082 $ 24,807 $ 241,321 $ 1,021,466 $ 24,610 $ 20,266 $ 239,033 $ 552,339 - - - ( 2,183 ) 617 1,029 24,706 56,318 - ( 1,146 ) ( 49,481 ) ( 51,983 ) - 6 - 40 $ 25,227 $ 20,155 $ 214,258 $ 554,531 $ 855 $ 4,652 $ 27,063 $ 466,935	December 31, 2023 September 30, 2023 $ 477,962 $ 466,935 - 21,560 $ 477,962 $ 488,495 Molding equipment Leased Improvements Mask Total $ 28,168 $ 24,732 $ 245,857 $ 1,051,943 - - - ( 7,688 ) 5,271 3,720 21,063 34,934 - - - ( 1,653 ) 69 166 - 2,958 $ 33,508 $ 28,618 $ 266,920 $ 1,080,494 $ 25,474 $ 20,357 $ 221,459 $ 573,981 - - - ( 833 ) 1,952 1,430 15,372 47,285 - - - ( 1,645 ) 26 166 - 941 $ 27,452 $ 21,953 $ 236,831 $ 619,729 $ 6,056 $ 6,665 $ 30,089 $ 460,765 $ 2,694 $ 4,375 $ 24,398 $ 477,962 Molding equipment Leased Improvements Mask Total $ 26,082 $ 26,192 $ 275,274 $ 1,081,869 - - - ( 24,065 ) - 121 15,527 24,094 - ( 1,512 ) ( 49,480 ) ( 60,535 ) - 6 - 103 $ 26,082 $ 24,807 $ 241,321 $ 1,021,466 $ 24,610 $ 20,266 $ 239,033 $ 552,339 - - - ( 2,183 ) 617 1,029 24,706 56,318 - ( 1,146 ) ( 49,481 ) ( 51,983 ) - 6 - 40 $ 25,227 $ 20,155 $ 214,258 $ 554,531 $ 855 $ 4,652 $ 27,063 $ 466,935	December 31, 2023 September 30, 2023 $ 477,962 $ 466,935 - 21,560 $ 477,962 $ 488,495 Molding equipment Leased Improvements Mask Total $ 28,168 $ 24,732 $ 245,857 $ 1,051,943 - - - ( 7,688 ) 5,271 3,720 21,063 34,934 - - - ( 1,653 ) 69 166 - 2,958 $ 33,508 $ 28,618 $ 266,920 $ 1,080,494 $ 25,474 $ 20,357 $ 221,459 $ 573,981 - - - ( 833 ) 1,952 1,430 15,372 47,285 - - - ( 1,645 ) 26 166 - 941 $ 27,452 $ 21,953 $ 236,831 $ 619,729 $ 6,056 $ 6,665 $ 30,089 $ 460,765 $ 2,694 $ 4,375 $ 24,398 $ 477,962 Molding equipment Leased Improvements Mask Total $ 26,082 $ 26,192 $ 275,274 $ 1,081,869 - - - ( 24,065 ) - 121 15,527 24,094 - ( 1,512 ) ( 49,480 ) ( 60,535 ) - 6 - 103 $ 26,082 $ 24,807 $ 241,321 $ 1,021,466 $ 24,610 $ 20,266 $ 239,033 $ 552,339 - - - ( 2,183 ) 617 1,029 24,706 56,318 - ( 1,146 ) ( 49,481 ) ( 51,983 ) - 6 - 40 $ 25,227 $ 20,155 $ 214,258 $ 554,531 $ 855 $ 4,652 $ 27,063 $ 466,935



Land
$ 84,099 ( 1,618 ) - - - $ 82,481 $ - - - - - $ - $ 82,481 $ 84,099 Land	$ 341,041 ( 6,070 ) - - 1,946 $ 336,917 $ 62,689 ( 833 ) 8,122 - 193 $ 70,171 $ 266,746 $ 266,746 Buildings		$ 291,902 - 1,314 ( 1,306 ) 595 $ 292,505 $ 213,209 - 18,103 ( 1,306 ) 396 $ 230,402 $ 62,103 $ 78,693 R&D equipment		$ 36,144 - 3,566 ( 347 ) 182 $ 39,545 $ 30,793 - 2,306 ( 339 ) 160 $ 32,920 $ 6,625 $ 5,351 Office equipment	$ 28,168 - 5,271 - 69 $ 33,508 $ 25,474 - 1,952 - 26 $ 27,452 $ 6,056 $ 2,694 Molding equipment	$ 24,732 - 3,720 - 166 $ 28,618 $ 20,357 - 1,430 - 166 $ 21,953 $ 6,665 $ 4,375 Leased Improvements		$ 245,857 - 21,063 - -
									$ 266,920
									$ 221,459 - 15,372 - -
									$ 236,831
									$ 30,089 $ 24,398
									Mask
$ 86,200 ( 5,064 ) - ( 2,101 ) - $ 79,035 $ - - - - - $ - $ 79,035	$ 347,845 ( 19,001 ) - ( 7,055 ) 70 $ 321,859 $ 52,752 ( 2,183 ) 7,905 ( 983 ) 10 $ 57,501 $ 264,358	$ 284,890 - 7,534 ( 185 ) 22 $ 292,261 $ 188,290 - 19,219 ( 185 ) 18 $ 207,342 $ 84,919		$ 35,386 - 912 ( 202 ) 5 $ 36,101 $ 27,388 - 2,842 ( 188 ) 6 $ 30,048 $ 6,053		$ 26,082 - - - - $ 26,082 $ 24,610 - 617 - - $ 25,227 $ 855	$ 26,192 - 121 ( 1,512 ) 6 $ 24,807 $ 20,266 - 1,029 ( 1,146 ) 6 $ 20,155 $ 4,652	( (		$ 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

No impairment losses were recognized or reversed for the nine months ended September 30, 2024 and 2023.

16 -

(Ⅱ) Assets subject to operating leases

Assets subject to operating leases
Cost Balance at January 1, 2024 Transfers from assets used by the Company Balance at September 30, 2024 Accumulated depreciation Balance at January 1, 2024 Transfers from assets used by the Company Depreciation Balance at September 30, 2024 Carrying amount at September 30, 2024 Carrying amount at December 31, 2023 and January 1,2024 Cost Balance at January 1, 2023 Transfers from assets used by the Company Balance at September 30, 2023 Accumulated depreciation Balance at January 1, 2023 Transfers from assets used by the Company Depreciation Balance at September 30, 2023 Carrying amount at September 30, 2023		Land $ - 1,618 $ 1,618 $ - - - $ - $ 1,618 $ - $ - 5,064 $ 5,064 $ - - - $ - $ 5,064		Buildings $ - 6,070 $ 6,070 $ - 833 91 $ 924 $ 5,146 $ - $ - 19,001 $ 19,001 $ - 2,183 322 $ 2,505 $ 16,496		Total
						$ - 7,688 $ 7,688 $ - 833 91 $ 924 $ 6,764 $ - $ - 24,065 $ 24,065 $ - 2,183 322 $ 2,505 $ 21,560

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:

Buildings R&D equipment Office equipment Molding equipment Leased Improvements 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 operating leases
		50 years - - - - -

17 -

XII.Lease Agreements

(I) Right-of-use assets

ght-of-use assets
Carrying amount of right-of-use assets Buildings Additions to right-of-use assets Depreciation of right-of-use assets Buildings	September30, 2024 $ 13,534 Three Months Ended September 30		December 31, 2023			September30, 2023
				$

	2024	2023			2024		2023
	$ 3,264				$ 2,199 $ 9,745		$ 16,257 $ 9,900

Besides the additions and depreciation disclosed above, there was no significant sublease transactions and indication of impairment for the nine months ended September 30, 2024 and 2023.

(II)Lease liability

se liability
Carrying amount of lease liabilities Current Non-Current	September30, 2024 $ 6,316 $ 7,215	December 31, 2023		September30, 2023
			$ 11,785 $ 9,529		$ 12,341 $ 12,106

The discount rate for lease liabilities ranges as follows:

September 30, 2024 December 31, 2023 September 30, 2023 Buildings 1.96%~2.10% 1.96%~2.10% 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.

18 -

(IV) Other Lease Information

XIII	Short-term lease charges Low-value asset leasing costs Total cash (outflow) from leases .Intangible Assets	Three Months Ended September 30 2024 2023 $ 171 $ 739 $ 6 $ 6 ( $ 3,798 ) ( $ 4,010 )	Three Months Ended September 30 2024 2023 $ 171 $ 739 $ 6 $ 6 ( $ 3,798 ) ( $ 4,010 )	Three Months Ended September 30 2024 2023 $ 171 $ 739 $ 6 $ 6 ( $ 3,798 ) ( $ 4,010 )	Nine Months Ended September 30	Nine Months Ended September 30	Nine Months Ended September 30	Nine Months Ended September 30
		(	2024 $ 171 $ 6 $ 3,798 )	(	(	2024 $ 484 $ 17 $ 11,160 )	(	2023 $ 1,576 $ 16 $ 11,825 )

II.Intangible Assets
Cost Balance at January 1, 2024 Additions Effect of exchange rate changes Balance at September 30, 2024 Cumulative amortization Balance at January 1, 2024 Additions Effect of exchange rate changes Balance at September 30, 2024 Carrying amount at September 30, 2024 Carrying amount at December 31, 2023 and January 1,2024 Cost Balance at January 1, 2023 Additions Balance at September 30, 2023 Cumulative amortization Balance at January 1, 2023 Additions Balance at September 30, 2023 Carrying amount at September 30 2023		Computer Software $ 102,517 1,230 3 $ 103,750 $ 95,961 3,109 3 $ 99,073 $ 4,677 $ 6,556 $ 100,162 2,059 $ 102,221 $ 92,279 2,680 $ 94,959 $ 7,262	Specialized Technology $ 33,434 1,254 - $ 34,688 $ 32,979 1,291 - $ 34,270 $ 418 $ 455 $ 27,972 5,462 $ 33,434 $ 26,984 4,629 $ 31,613 $ 1,821		Right of Patent $ 8,383 - - $ 8,383 $ 4,262 628 - $ 4,890 $ 3,493 $ 4,121 $ 8,383 - $ 8,383 $ 3,425 627 $ 4,052 $ 4,331		Others $ 2,922 - - $ 2,922 $ 2,922 - - $ 2,922 $ - $ - $ 2,922 - $ 2,922 $ 2,922 - $ 2,922 $ -		Total
									$ 147,256 2,484 3 $ 149,743 $ 136,124 5,028 3 $ 141,155 $ 8,588 $ 11,132 $ 139,439 7,521 $ 146,960 $ 125,610 7,936 $ 133,546 $ 13,414

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

19 -

XIV. Other Assets

her Assets
Current Payment in advance Tax retained Tax refund receivable Temporary payments Others Non-Current Refundable deposits Prepayment for equipment	September30, 2024 $ 4,666 4,490 3,100 785 5,786 $ 18,827 $ 3,674 2,098 $ 5,772	December 31, 2023 $ 4,396 4,522 813 1,408 8,071 $ 19,210 $ 3,483 4,264 $ 7,747	September30, 2023
				$ 4,498 6,969 - 1,025 6,523 $ 19,015 $ 3,510 3,495 $ 7,005

XV.Loan

n
Long-term Loans Unsecured borrowing Bank loan (NOTE 1) Less`：`Current portion Long-term Loans	September30, 2024 $ 35,000 ( 5,833) $ 29,167	December 31, 2023 $ - - $ -	September30, 2023

	(			$ - - $ -

NOTE 1:

This bank loan is a government preferential interest rate loan for the "Ministry of Economic Affairs' project to assist small and medium-sized enterprises in the low-carbon and smart transformation and development and management of factories and specific factory infrastructure optimization projects". The subsidy period is 1 year and will be continued before May 2027. At maturity, the interest rate is 2.095% bank borrowing rate minus 1.595% government subsidy interest rate, so the borrowing interest rate is 0.5%.

XVI.Other Current Liabilities

er Current Liabilities
Bonuses payable Unpaid leave benefits payable Insurance premium payable Equipment payment payable Labor expenses payable Others	September30, 2024		December 31, 2023 $ 38,349 5,687 3,853 - 3,296 24,074 $ 75,259	September30, 2023
		$ 36,203 5,112 3,713 3,270 2,363 28,811 $ 79,472			$ 43,311 5,593 5,052 - 3,725 21,273 $ 78,954

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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 $2,589 and$2,696 for the three months ended September 30, 2024 and 2023, and were $7,952 and $8,260 for the nine months ended September 30, 2024 and 2023.

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

21 -

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	September 30, 2024 200,000 $ 2,000,000 60,029 $ 600,291	December 31, 2023 200,000 $ 2,000,000 58,918 $ 589,178	September 30, 2023 200,000 $ 2,000,000 58,537 $ 585,368

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 thousand shares.

(II) Capital reserves

Capital reserves
Used to cover losses, distribute 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 Others Not used for any purpose Restricted stock for employees	September 30, 2024 $ 240,702 84,732 131 38,251 $ 363,816	December 31, 2023		September 30, 2023
			$ 254,672 84,732 125 50,306 $ 389,835		$ 245,361 84,732 125 37,219 $ 367,437

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.
22 -

(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:

Making good of accumulated loss (including adjustment of the amount of undistributed earnings).
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 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:

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

23 -

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 dividends, 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 2022. Besides the cash dividends, the remaining surplus distribution items were also decided at the regular meeting of shareholders on June 13, 2023.

(IV) Other equity

1. Foreign Currency Translation Reserve

Balance at January 1 Current year Difference in conversion of foreign operators Other comprehensive gains and losses in current year Balance at September 30		Nine Months Ended September 30	Nine Months Ended September 30
		2024	2023
	(	$ 786) 14,670 ( 14,670 ( $ 13,884	$ 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.

2. Unearned Stock-Based Employee Compensation

The Board of Shareholders of the Company decided on June 13, 2023, June 9, 2022 and June 23, 2020 respectively to issue new shares with restricted employee option, as explained in Note 19.

plained in Note 19.
Balance at January 1 Recognized share-based payment Recovered and canceled in current year Balance at September 30	Nine Months Ended September 30
	2024 2023
	( $ 35,803 ) ( $ 31,945 ) 14,642 11,553 3,275 3,640 ( $ 17,886 ) ( $ 16,752 )

24 -

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:

==> picture [426 x 16] intentionally omitted <==

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

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

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

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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.

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:

Nine Months Ended September 30,2024 Outstanding at the beginning of the year Granted in current year Recovered for the year Outstanding at the end of the year Weighted average fair value (NTD) Nine Months Ended September 30,2023 Outstanding at the beginning of the year Granted in current year Recovered for the year Outstanding at the end of the year Weighted average fair value (NTD)	Employee restricted stock award shares for 2020-1 Unit (Thousand) 132.0 ( 132.0 ) - - $ 34.35 424.5 ( 136.5 ) ( 24.0) 264.0 $ 34.35	Employee restricted stock award shares for 2020-2
		Unit (Thousand)
		105.0 ( 35.0 ) ( 3.0) 67.0 $ 122 192.5 ( 35.0 ) ( 17.5) 140.0 $ 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:

26 -

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:

==> picture [426 x 26] intentionally omitted <==

----- 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.

27 -

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

Nine Months Ended September 30,2024 Outstanding at the beginning of the year Recovered for the year Outstanding at the end of the year Granted weighted average fair value (NTD) Nine Months Ended September 30,2023 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 58.5) 234.0 $ 47.1 420.0 51.0) 369.0 $ 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:

==> picture [426 x 16] intentionally omitted <==

----- 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

28 -

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:

Nine Months Ended September 30,2024 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 39.0) 381.0 $ 66.5

From January 1 to September 30, 2024 and 2023, 42 and 82.5 thousand shares with restricted employee rights were recovered due to employee resignations respectively, of which 7 and 39 thousand shares respectively have yet to be cancelled.

The compensation costs for the new shares with restricted option as recognized for the nine months ended September 30 of 2024 and 2023 are $14,642 and $11,553 respectively.

29 -

XX.Operating Revenue

ating Revenue
Revenue from contracts with customers Integrated circuits Contractual balance Notes and accounts receivable (Note 8)	Three Months Ended September 30 2024 2023 $ 428,712 $ 333,221 September 30,2024 December 31,2023 $ 267,630 $ 191,426	Nine Months Ended September 30
	2024	2024	2023
	$ 428,712 September 30,2024	$1,118,481 September 30,2023	$ 813,200 January 1,2023
	$ 267,630	$ 199,511	$ 169,644

(I) Contractual balance
(II)Itemized Revenue from Contracts with Customers

Itemized by Areas

Itemized by Areas
Taiwan (where the Company is located) Mainland China Korea Other countries	Three Months Ended September 30 2024 2023 $ 215,312 $ 183,746 212,660 146,949 740 830 - 1,696 $ 428,712 $ 333,221	Nine Months Ended September 30
	2024	2024	2023
	$ 215,312 212,660 740 - $ 428,712	$ 569,482 546,902 2,097 - $1,118,481	$ 439,914 364,885 1,665 6,736 $ 813,200

XXI.Net Profit(loss) of Operations

(I) Interest Income

Interest Income
Bank deposits Commercial paper Deposit interest Other Incomes Lease income Other operating leases Government subsidy Others	Three Months Ended September 30 2024 2023 $ 1,346 $ 797 61 3 10 9 $ 1,417 $ 809 Three Months Ended September 30 2024 2023 $ 424 $ 510 5 - 494 ( 2) $ 923 $ 508	Nine Months Ended September 30
	2024	2024	2023
		$ 4,450 $ 2,110 92 25 29 27 $ 4,571 $ 2,162 Nine Months Ended September 30
	2024	2024	2023
	$ 424 5 494 ( $ 923	$ 1,414 701 1,794 $ 3,909	$ 1,692 - 527 $ 2,219

(II) Other Incomes
30 -

(III) Other Gains and Losses

Gains and losses on financial assets Financial asset at fair value through profit Net gain (loss) on foreign exchange Lease Modification Benefit Disposal of property, plant and equipment (losses) Others		Three Months Ended September 30 2024 2023 $ 377 $ 133 2,030 8,477 - 28 - ( 379 ) - 15,641 $ 2,407 $ 23,900	Nine Months Ended September 30	Nine Months Ended September 30
			2024	2023
			$ 1,151 10,652 - ( 8 ) - $ 11,795	$ 838 7,015 28 1,843 16,605 $ 26,329

(IV) Financial Cost

) Financial Cost
Interest expense on lease liabilities Interest expense on Bank loans	Three Months Ended September 30 2024 2023 $ 79 $ 122 45 - $ 124 $ 122	Nine Months Ended September 30
	2024	2024	2023
	$ 79 45 $ 124	$ 285 116 $ 401	$ 342 - $ 342

(V) Depreciation and Amortization

Summary of depreciation by function Operating costs Operating Expenses Summary of Amortization by function Operating costs Operating Expenses		Three Months Ended September 30 2024 2023 $ 4,811 $ 3,905 13,698 17,611 $ 18,509 $ 21,516 $ 253 $ 297 1,299 2,292 $ 1,552 $ 2,589		Nine Months Ended September 30	Nine Months Ended September 30
		2024		2024	2023
		$ 4,811 13,698 $ 18,509 $ 253 1,299 $ 1,552		$ 14,222 42,899 $ 57,121 $ 759 4,269 $ 5,028	$ 14,061 52,479 $ 66,540 $ 893 7,043 $ 7,936

31 -

(VI) Employee benefit expenses

Post-retirement benefits (Note 17) Identified allocation plan Identified benefit plan Share-based payment (Note 19) Delivery of equity Other employee benefits Total employee benefit expenses Summary by function Operating costs Operating Expenses		Three Months Ended September 30 2024 2023 $ 2,589 $ 2,696 - - 2,589 2,696 4,697 4,181 88,273 82,253 $ 95,559 $ 89,130 $ 13,601 $ 10,069 81,958 79,061 $ 95,559 $ 89,130		Nine Months Ended September 30	Nine Months Ended September 30
		2024		2024	2023
		$ 2,589 - 2,589 4,697 88,273 $ 95,559 $ 13,601 81,958 $ 95,559		$ 7,952 - 7,952 14,642 256,133 $ 278,727 $ 40,223 238,504 $ 278,727	$ 8,260 216 8,476 11,553 222,695 $ 242,724 $ 35,997 206,727 $ 242,724

(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 period from July 1 to September 30, 2023 and from January 1 to September 30, 2023 are net losses before tax, so employee compensation and director compensation are not estimated.

The estimated employee remuneration and directors' remuneration from July 1 to September 30, 2024 and from January 1 to September 30, 2024 are as follows:

Estimated recognized proportion

Employee remuneration Director's remuneration	Nine Months Ended September 30
	2024 2023
	16% - 1% -

32 -

Amount

Employee remuneration Director's remuneration		Three Months Ended September 30 2024 2023 $ 9,216 $ - $ 781 $ -		Nine Months Ended September 30	Nine Months Ended September 30
		2024		2024	2023
		$ 9,216 $ 781		$ 19,125 $ 1,714	$ - $ -

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:

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

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		Three Months Ended September 30 2024 2023 $ 5,898 $ 9,014 3,868) ( 537) $ 2,030 $ 8,477		Nine Months Ended September 30	Nine Months Ended September 30
		2024		2024	2023
	(	$ 5,898 3,868) ( $ 2,030	(	$ 14,783 4,131) ( $ 10,652	$ 14,077 7,062) $ 7,015

33 -

XXII. Income Tax

(I) Income tax recognized in profit and loss

The tax expenses (benefits) mainly comprises the items listed as follows:

Current income tax Incurred in current year Undistributed Surplus Earnings Additional Adjustments from previous years Deferred income tax Incurred in current year Income tax expenses (benefits) recognized in profit or loss		Three Months Ended September 30 2024 2023 $ 5,896 ( $ 310 ) - - - - 82 310 $ 5,978 $ -	Nine Months Ended September 30
			2024 2023
			$ 7,246 ( $ 512 ) 678 - ( 9,894 ) - 825 512 ( $ 1,145 ) $ -

(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(loss) per share

Unit: $ per share

Basic earnings(loss) per share Diluted earnings(loss) per share		Three Months Ended September 30 2024 2023 $ 0.78 $ 0.42 $ 0.77 $ 0.42		Nine Months Ended September 30	Nine Months Ended September 30
		2024		2024	2023
		$ 0.78 $ 0.77		$ 1.71 ( $ 1.69 (	$ 0.09 ) $ 0.09 )

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 17, 2024. 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 After retroactive adjustment

Basic earnings(loss) per share Diluted earnings(loss) per share	Three Months Ended September 30,2023 $ 0.43 $ 0.43	( (	Nine Months Ended September 30,2023 $ 0.09 ) $ 0.09 )	Three Months Ended September 30,2023 $ 0.42 $ 0.42	( (	Nine Months Ended September 30,2023 $ 0.09 ) $ 0.09 )

34 -

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

Net Profit (loss) of the Year

Three Months Ended September 30 2024 2023 $ 46,141 $ 24,796 Three Months Ended September 30 2024 2023 59,337 58,875 325 522 212 - 59,874 59,397	Nine Months Ended September 30	Nine Months Ended September 30
2024	2024	2023
	$ 101,193 ( $ 5,066 ) Unit: Thousand shares Nine Months Ended September 30
2024	2024	2023
59,337 325 212 59,874	59,254 521 223 59,997	58,790 - - 58,790

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 January 1 to September 30 of 2023, and if the impact of employee compensation and restricted stock for employees are included, it will have a counter-dilution effect, calculated on the basis of excluding diluted earnings per share.

XXIV. Capital 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.

35 -

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

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 carrying 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

September 30, 2024

September 30, 2024
Financial assets at fair value through profit or loss Fund beneficiary certificate December 31, 2023 Financial assets at fair value through profit or loss Fund beneficiary certificate September 30, 2023 Financial assets at fair value through profit or loss Fund beneficiary certificate	Level 1 $ 91,053 Level 1 $ 83,823 Level 1 $ 36,697	Level 2 $ - Level 2 $ - Level 2 $ -	Level 3 $ - Level 3 $ - Level 3 $ -	Total
				$ 91,053 Total
				$ 83,823 Total
				$ 36,697

There was no transfer of fair value measurement between Class 1 and Class 2 in the period from January 1 to September 30 of 2024 and 2023.

(III) Categories of financial instruments

Financial Assets Gain (loss) on financial instruments at FVTPL, net Mandatorily measured at FVTPL Financial assets at amortized costs Cash and Cash Equivalents Notes and accounts receivable Refundable deposits	September 30, 2024 $ 91,053 522,574 267,630 3,674	December 31, 2023 $ 83,823 457,745 191,426 3,483	September 30, 2023
			$ 36,697 396,589 199,511 3,510

(Continued on next page)

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(Brought forward from previous page)

Financial liabilities Measured at amortized cost Accounts payable Long-term loans (Including due within one year) Deposit received	September 30, 2024 $ 165,988 35,000 10,845	December 31, 2023 $ 107,636 - 860	September 30, 2023
			$ 63,745 - 945

(IV) Purpose and Policy of Financial Risk Management

Main financial instruments of the Company include notes and accounts receivable, refundable deposits, accounts payable, loans 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) Foreign 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 foreign currency risk just for the purpose of hedging, not for profit.

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

For carrying 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.

37 -

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 and other receivables, 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
Nine Months Ended Nine Months Ended
----- End of picture text -----

	Effect of USD Nine Months Ended	Effect of CNY Nine Months Ended
Profit (loss) before tax	September 30 2024 2023 $ 2,734 $ 5,952	September 30
		2024 2023
		$ 4,635 $ 3,247

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 CNY exchange rate increased for the current period. It was mostly because the balance of accounts receivable in CNY increased so that net CNY assets increased at the end of the year. Decrease in sensitivity to the USD exchange rate was mostly because accounts payable in USD increased so that net USD assets decreased 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 carrying 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 Interest rate risk in cash flow -Financial assets	September 30, 2024 $ 370,700 48,531 151,370	December 31, 2023 $ 342,700 21,314 114,426	September 30, 2023
			$ 238,100 24,447 157,622

38 -

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 2024 and 2023 will increase/decrease by $114 and $118 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, Customer E and Customer F 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, 2024, with the exception of Customer A, Customer B, Customer C, Customer D, Customer E and Customer F, 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, Customer E and Customer F are limited, since they are highly reputable manufacturers.

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.

39 -

(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.

September 30, 2024

Accounts payable Lease liabilities Fixed rate instruments Other current liabilities		Immediate payment or less than 1 month $ 95,595 $ 772 $ - $ 6,552	1	~ 3 months $ 70,393 $ 1,476 $ - $ 8,414	3 months Up to 1 year $ - $ 4,235 $ 5,833 $ -	1 ~ 5 years $ - $ 7,337 $ 29,167 $ -		Total $ 165,988 $ 13,820 $ 35,000 $ 14,966

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

liabilities is as follows:
Less than 1 year Lease liabilities $ 6,483 Fixed rate instruments 5,833 $ 12,316 ecember 31, 2023 Immediate payment or less than 1 month 1 ~ 3 months Accounts payable $ 66,255 $ 41,381 Lease liabilities $ 1,114 $ 2,111 Other current liabilities $ 13,175 $ 5,613		1~5 years	> 5 $ $ 1 ~ 5 years $ - $ 9,754 $ -	> 5	years
	$ 7,337 29,167 $ 36,504 3 months Up to 1 year $ - $ 8,837 $ -	$ 7,337 29,167		$	- - - Total $ 107,636 $ 21,816 $ 18,788
		$ 36,504		$

Accounts payable Lease liabilities Other current liabilities

December 31, 2023

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

liabilities is as follows:	liabilities is as follows:
Less than 1 year lease liabilities $ 12,062 September 30, 2023 Immediate payment or less than 1 month 1 ~ 3 months Accounts payable $ 32,628 $ 31,117 Lease liabilities $ 1,121 $ 2,243 Other current liabilities $ 12,210 $ 6,206			1～5 years > 5 years $ 9,754 $ - 3 months Up to 1 year 1 ~ 5 years Total $ - $ - $ 63,745 $ 9,609 $ 12,386 $ 25,359 $ - $ - $ 18,416
Accounts payable Lease liabilities Other current liabilities

40 -

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

lease liabilities	Less than 1 year $ 12,973		1~5 years $ 12,386	> 5 years $ -

XXVI.Transactions with Related Parties

(I) All transactions between the Company and its subsidiaries, account balances, gains and losses have been eliminated 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	Three Months Ended September 30 2024 2023 $ 6,170 $ 6,360 130 174 554 1,014 $ 6,854 $ 7,548	Three Months Ended September 30 2024 2023 $ 6,170 $ 6,360 130 174 554 1,014 $ 6,854 $ 7,548	Nine Months Ended September 30	Nine Months Ended September 30	Nine Months Ended September 30
		2024		2024	2023
		$ 6,170 130 554 $ 6,854		$ 19,276 393 2,050 $ 21,719	$ 19,916 709 2,764 $ 23,389

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 thousand, 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 thousand.

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:

41 -

September 30, 2024

September30, 2024
Foreign currency Financial assets Monetary item USD $ 4,830 USD 3 CNY 20,497 Financial liabilities Monetary item USD 3,105 December 31, 2023 Foreign currency Financial assets Monetary item USD $ 4,808 CNY 11,569 Financial liabilities Monetary item USD 2,180 September30, 2023 Foreign currency Financial assets Monetary item USD $ 4,685 CNY 14,708 Financial liabilities Monetary item USD 995	Exchange rate 31.650 (USD:NTD) 6.9976 (USD:CNY) 4.523 (CNY:NTD) 31.650 (USD:NTD) Exchange rate 30.705 (USD:NTD) 4.327 (CNY:NTD) 30.705 (USD:NTD) Exchange rate 32.270 (USD:NTD) 4.415 (CNY:NTD) 32.270 (USD:NTD)	Carrying amount
		$ 152,881 69 92,709 $ 245,659 $ 98,267 Carrying amount
Financial assets Monetary item USD CNY Financial liabilities Monetary item USD September30, 2023
		$ 147,642 50,058 $ 197,700 $ 66,952 Carrying amount
Financial assets Monetary item USD CNY Financial liabilities Monetary item USD
			$ 151,171 64,936 $ 216,107 $ 32,123

The total realized and unrealized net gain (loss) on foreign currency exchange of the Company from July 1 to September 30 of 2024 and 2023 and January 1 to September 30 of 2024 and 2023 were $2,030 , $8,477 , $10,652 and ($7,015) respectively. Due to the wide variety of individual foreign currencies used in transactions by the affiliates of the Group, it isn’t possible to disclose exchange gains and losses by foreign currency with significant impact.

42 -

XXIX. Separately disclosed items

(I) Significant Transactions and (II) Information Relevant to Reinvestments: At the time of preparation of these consolidated financial statements, all significant transactions between the parent and subsidiaries and their balances have been eliminated.
Financing provided: none.
Endorsements/guarantees provided : none. 3. Marketable securities held:

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

Company Holding Name marketable Type of Names of securities Relationship Securities with Statement Financial Number of Carrying September 30Percentage , 2024 of Fair Value Rema
Securities Account shares or Unit amount rk
Issuer Ownership
Fund B on Mainland China － Financial assets at - $ 45,785 - $ 45,785 Note 1
LEADTREND Fund Resources YuanDa Cash fair value
SHENZHEN Connect Money Market through profit or
loss - current
ICBC Financial Management － Financial assets at - 45,268 - 45,268 Note 1
Corporation Tianlibao Net fair value
Value Financial Products through profit or
loss - current
----- End of picture text -----

Note 1: Based on net value as at September 30, 2024.

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, 2024.

Marketable securities acquired and disposed of at costs or prices at least NT$300 million or 20% of the paid-in capital: none.
Acquisition of individual real estate at costs of at least NT $300 million or 20% of the paid-in capital: none.
Disposal of individual real estate at prices of at least NT$300 million or 20% of the paid-in capital: none.
Total purchases from or sales to related parties of at least NT$100 million or 20% of the paid-in capital:

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

Transaction Details Notes / account
Abnormal Transaction receivable (payable)
Company name Related Party Relationship Purchase % to Payment Note
/ Amount Total Terms Payment Balance % to Total
Sale Unit price Terms
LEADTREND LEADTREND Parent Sale $ 327,571 33% 60 days Note Equivalent $ 76,989 42% －
TECHNOLOGY TECHNOLOGY company on
CORPORATION (SHENZHEN) monthly
LTD
payment
----- End of picture text -----

Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital: none.
Trading derivative instruments: none.
43 -
Others:Intercompany Relations And Significant Intercompany Transactions:

For the Nine Months Ended September 30 of 2024

No. 0 0	Name of Trader LEADTREND TECHNOLOGY CORPORATION LEADTREND TECHNOLOGY CORPORATION	Trading Party LEADTREND TECHNOLOGY (SHENZHEN) LTD LEADTREND TECHNOLOGY (SHENZHEN) LTD	Relationship (Note 2) 1 1	IntercompanyTransaction	IntercompanyTransaction	IntercompanyTransaction
				Item Sales Accounts Receivabl e - related parties	Amount	Transaction terms Note 3 Note 3	% of total sales or assets
					$ 327,571 76,989		29% 4%

Note 1: The parent company is 0. Subsidiaries are numbered in numerical order from 1, by types of the subsidiaries.

Note 2: ＂ 1 ＂ represents a transaction initiated by the parent company with a subsidiary.

Note 3: 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.

Information on investees: None.

(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 [428 x 222] intentionally omitted <==

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

Unit: In thousands of NTD; in thousands of USD
Investment Percentage Investment
amount remitted of shares
company in Mainland Name of investee China Min business activities Paid-in capital [Investment ] method company in Mainland Name of investee China or recovered in Remitted the year mitRe recovered in Investment remitted or the year amount profit (loss) of company’s Investee the year held by the Company direct or through indirect for the year Investment recognized gain (loss) (Note 2) book value investment (Note 2) Ending of Taiwan as of the end remitted back to gain
ted investment of the year
LEADTREND Computer $ 313,335 Note 1 $ 223,133 $ - $ $ 223,133 $ 71,801 100% $ 71,801 $ 308,687 $ -
TECHNOLOGY software ( USD 9,900) ( USD 7,050) ( USD 7,050) ( USD 2,241) ( USD 2,241) ( USD 9,753)
CORPORATION design 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 Taiwan to Mainland China at the end Investment amount approved by Investment investment provided by Investment
Commission, Ministry of Economic Affairs Commission, Ministry of Economic
of the year Affairs
$ 223,133 (USD 7,050) $ 313,335 (USD 9,900) $1,050,118
----- End of picture text -----

Note1: The investment was made physically in Mainland China. Note2: It was calculated based on the investee company’s financial statements for the same period that have not been reviewed by CPAs.

Note3: The figures in a foreign currency indicated in the table were converted into NTD at the exchange rate announced on the reporting date.
Note 4: ~~A~~ t September 30, 2024, Leadtrend 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.
44 -
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 Major 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.	4,880,227	8.12

XXX. Information of Segments

Information reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance focuses on the types of goods or services delivered or provided.Therefore, for the segments revenue and operating results reported for the period from July 1 to September 30 and January 1 to September 30 of 2024 and 2023, refer to the consolidated income statement for the period from July 1 to September 30 and January 1 to September 30 of 2024 and 2023. For the operating segments assets to be reported as of September 30, 2024, September 30, 2023 and December 31, 2023, refer to the consolidated balance sheet as of September 30, 2024, September 30, 2023 and December 31, 2023 respectively.

45 -

AI assistant

LD — Interim / Quarterly Report 2024

52348_rns_2024-11-13_8b9f4e72-ed46-46e8-833a-a874ea94cb43.pdf

Leadtrend Technology Corporation and Subsidiaries

Table of Contents

INDEPENDENT AUDITORS’ REVIEW REPORT

Introduction

Scope of Review

Conclusion

LEADTREND TECHNOLOGY CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET

LEADTREND TECHNOLOGY CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

LEADTREND TECHNOLOGY CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

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

LEADTREND TECHNOLOGY CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS

(In Thousands of New Taiwan Dollars)

LEADTREND TECHNOLOGY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

I. History of Company

II. Date and Procedure of Adopting Financial Statements

III. Applicability of New and Amended Standards and Interpretations

IV. Summary of Material Accounting Policies

Current liabilitie:

VI. Cash and Cash Equivalents

Aging analysis of net accounts receivable

IX. Inventory

X. Subsidiary

(Ⅱ) Assets subject to operating leases

XII.Lease Agreements

(I) Right-of-use assets

(II)Lease liability

(III) Major leasing activities and terms

(IV) Other Lease Information

XIV. Other Assets

XV.Loan

NOTE 1:

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

(IV) Other equity

1. Foreign Currency Translation Reserve

2. Unearned Stock-Based Employee Compensation

XIX.Share-based payment

Stocks with restricted employee's option

XX.Operating Revenue

Itemized by Areas

XXI.Net Profit(loss) of Operations

(III) Other Gains and Losses

(IV) Financial Cost

(V) Depreciation and Amortization

(VI) Employee benefit expenses

(VII) Remuneration of employees and directors

Estimated recognized proportion

Amount

(VIII) Gains/loss in foreign currency exchange

XXII. Income Tax

(I) Income tax recognized in profit and loss

(II) Approval of income tax

Net Profit (loss) of the Year

XXIV. Capital Management

XXV. Financial Instruments

Fair value hierarchy

September 30, 2024

(III) Categories of financial instruments

(IV) Purpose and Policy of Financial Risk Management

1. Market Risk

(1) Foreign currency Risk

Sensitivity Analysis

Sensitivity analysis

2. Credit risk

(1) Liquidity of Non-derivative Financial Liabilities

XXVI.Transactions with Related Parties

XXVII.Major Contingent Liabilities and Unrecognized Contractual Commitments

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

September 30, 2024

XXIX. Separately disclosed items

For the Nine Months Ended September 30 of 2024

LD Interim / Quarterly Report 2024