Lien Hwa Industrial Holdings Corporation Parent Company Only Financial Statements and Independent Auditor's Report December 31, 2023 and 2022

For the convenience of readers and for information purpose only, the auditors’ report and the accompanying financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. In the event of any discrepancy between the English version and the original Chinese version or any differences in the interpretation of the two versions, the Chinese-language auditors’ report and financial statements shall prevail.

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Independent Auditors’ Report

To the Board of Directors and Shareholders of Lien Hwa Industrial Holdings Corporation:

Opinion

We have audited the balance sheet of Lien Hwa Industrial Holdings Corporation as at December 31, 2023 and 2022, and the comprehensive income statement, the statement of changes in equity and the cash flow statement, and the notes to parent company only financial statements (including the summary of significant accounting policies) for the year ended December 31, 2023 and 2022.

In our opinion, all material disclosures of the parent company only financial statements mentioned above were prepared in accordance with Regulations Governing the Preparation of Financial Reports by Securities Firms, and presented a fair view of the financial position of Lien Hwa Industrial Holdings Corporation as at December 31, 2023 and 2022, and the business performance and cash flow for the year ended December 31, 2023 and 2022.

Basis for opinion

We have conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and the auditing standards. Our responsibility to the standards will be explained in the paragraph of auditor’s responsibilities when auditing the parent company only financial statements. All relevant independent personnel subject to the CPA professional ethics within the firm remain independent from the Lien Hwa Industrial Holdings Corporation and implement responsibilities regulated in the ethics. We believe we have obtained sufficient appropriate audit evidence to serve as the basis for the audit opinion.

Key audit matters

Key audit matters are the most important matters that we audit in the 2023 parent company only financial statements of Lien Hwa Industrial Holdings Corporation based on our professional judgment. All relevant matters were audited during the audit of the parent company only financial statements and the formulation of the audit opinions. We will not express our opinions on those matters separately. The key audit matters that we determine shall be listed on the audit report include: Assessment of investment under equity method

Regarding the accounting policies for the investment assessment under equity method, please see note 4(7) and (8) to the Parent Company Only Financial Statements; for the shareholding in the profit of the affiliated companies and joint ventures under the equity method, please see see note 6(5) to the Parent Company Only Financial Statements.

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Description of the key audit matters:

Lien Hwa Industrial Holdings Corporation the main business became general investment. The recognized investment amount under equity method totaled NTD42,749,653 thousand, occupying 79% of Lien Hwa Industrial Holdings Corporation’s total assets. Therefore, the investment under equity method is listed as a matter we need to highly focus on when auditing. Corresponding audit process:

The audit process we perform for the above key audit matters includes: provide audit instructions to and communicate with the audit staff of other component entities; acquire the financial statements of the component entities, perform a check calculation for the correctness of the recognized investment amount under equity method and attributable period and assess whether the management has properly discoursed the investment under equity method.

The responsibility of the management and the governing body for the parent company only financial statements

The management is responsible for preparing the appropriate parent company only financial statements in accordance with Regulations Governing the Preparation of Financial Reports by Securities Firms. Additionally, it is responsible for maintaining the internal control mechanism that is related to and necessary for the preparation of the parent company only financial statements. As a result, it can ensure material misstatement due to fraud or error is not pertained in the parent company only financial statements.

Other than the situation that the management intends to liquidate Lien Hwa Industrial Holdings Corporation or stop the business, or no other approaches can be used except for these two measures, during the preparation of the parent company only financial statements, the responsibility of the management also includes evaluating the going concern capacity of the Lien Hwa Industrial Holdings Corporation, disclosure of relative matters, and adoption of the going concern accounting basis.

The governing body of the Lien Hwa Industrial Holdings Corporation (including the Audit Committee) has the responsibility to supervise the financial reporting procedures.

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Our responsibility for the audit of the parent company only financial statements

The purpose for us to audit the parent company only financial statements is to obtain reasonable assurance that there is no material misstatement due to fraud or error in the parent company only financial statements, and we issue the audit report afterwards. Reasonable assurance means high assurance. Only that the audit work implemented in accordance with the auditing standards cannot give the promise that every material misstatement in the parent company only financial statements are found. Misstatement might result from fraud or error. If we can reasonably expect the individual amounts or the total amount in the misstatement would influence the financial decision made by the user of the parent company only financial statements, the misstatement is considered material.

When performing the audit according to the auditing standards, we exercise professional

judgment and remain skeptical professionally. We also perform the following work:

We identify the material misstatement resulting from fraud or error in the parent company only financial statement and assess its risk. We design and implement appropriate corresponding measures for the assessed risk. We acquire sufficient and appropriate audit evidence to serve as the basis for the audit opinion. Due to the fact that fraud might include collusion, forgery, intended omission, misstatement and violation of internal control, the risk of the misstatement resulting from fraud is higher than that resulting from error.
We acquire necessary understanding of the internal control mechanism that is related to the audit to design appropriate audit process for the situation at the time. The purpose of the knowledge is not expressing opinions to the effectiveness of the internal control mechanism of the Lien Hwa Industrial Holdings Corporation.
We evaluate whether the accounting policies adopted by the management are suitable and whether the accounting estimation as well as relative disclosures are appropriate.
Based on the acquired audit evidence, we decide whether the going concern accounting basis adopted by the management is suitable, whether events that might affect the going concern capacity of Lien Hwa Industrial Holdings Corporation exist, and whether there is major uncertainty. A conclusion will be made afterwards. We believe under the circumstances that there is major uncertainty, a reminder shall be included in the audit report to inform the parent company only financial statements user to pay attention to relative disclosures in the statements. We shall modify the audit opinion when the disclosure is considered improper. Our conclusion is based on the audit evidence acquired as of the date of the audit report. Future events or circumstances might still result in the fact that Lien Hwa Industrial Holdings Corporation no longer has the going concern capacity.
We evaluate the overall statements, structures and contents of the parent company only financial statements (including relative notes) and see whether the statements appropriately state relevant transactions and events.

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We examine the financial information of invested company under the equity method to acquire sufficient and appropriate audit evidence for expressing opinions in the parent company only financial statements. We are responsible to guide, supervise and implement the audit. In addition, we are responsible for the formulation of opinions for Lien Hwa Industrial Holdings Corporation. We communicate with the governing body on the scope and time of the audit as well as the

significant findings (including significant deficiencies of the internal control mechanism identified during the audit process).

We have issued a declaration of independence to the governing body, which assured that all relevant personnel within the CPA firm had complied with ethical rules of the CPA profession. Besides, we mention the relation or situation that may compromise the CPA's independence (including relevant preventive measures) to the governing body.

After communicating the above matters with the governing body, we decide the key audit matters in the 2023 parent company only financial report of Lien Hwa Industrial Holdings Corporation. We clearly state all above matters in the audit report, unless the law prohibits us to publicly disclose certain matters, or under rare circumstances we decide not to include certain matters in the audit report since we can reasonably expect the resulting negative impact is greater than the public interest they bring.

The engagement partners on the audit resulting in this independent auditors’report are Swimming Hsu and Linda Chiang

KPMG

Taipei, Taiwan (Republic of China) March 8, 2024

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The accompanying parent company only financial statements are not intended to present the financial position and results of operations and cash flows in accordance with accounting principles generally accepted in countries and jurisdictions other than the Republic of China. The standards, procedures and practices in the Republic of China governing the audit of such financial statements may differ from those generally accepted in countries and jurisdictions other than the Republic of China.

Accordingly, the accompanying parent company only financial statements and independent auditors’ report are not intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic of China, and their applications in practice.

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Lien Hwa Industrial Holdings Corporation

Parent Company Only Balance Sheet

December 31, 2023 and 2022

(Expressed in Thousands of New Taiwan Dollars)

Assets Current assets: 1100 Cash and cash equivalent (note 6(1)) 1150 Notes receivable, net 1206 Other receivables (note 6(4)) 1470 Other current assets Non-current assets: 1517 Non-current financial assets at fair value through other comprehensive income (note 6(3)) 1550 Investments accounted for using equity method (note 6(5)) 1760 Investment property, net (note 6(6)) 1975 Net defined benefit asset, non-current (note 6(11)) 1990 Other non-current assets, others (note 6(12) and 8) Total assets	December 31, 2023 December 31, 2022 Amount % Amount % $ 419,027 1 36,589 - - - 1,526 38,056 - 320 - 4,450 - 4,505 - 461,533 1 42,940 - 10,910,220 20 7,956,476 18 42,749,653 79 36,983,795 82 16,335 - 3,395 - 5,006 - 5,239 - 2,911 - 2,695 - 53,684,125 99 44,951,600 100 $ 54,145,658 100 44,994,540 100 Liabilities and equity Current liabilities: 2100 Current borrowings (note 6(7) and 7) 2110 Short-term notes and bills payable (note 6(8)) 2200 Other payables (note 7) 2230 Current tax liabilities Non-current liabilities: 2530 Bonds payable (note 6(9)) 2540 Non-current portion of non-current borrowings (note 6(10)) 2551 Provision for employee benefit liability – non-current 2600 Other non-current liabilities (note 7) Total liabilities Equity:(note 6(13)) 3110 Common shares 3200 Capital surplus 3300 Retained earnings 3400 Other equities 3500 Treasury stock Total equity Total liabilities and equity	December 31,	2023
		Amount $ 4,850,000 199,992 84,897 35,503	%
		5,170,392	10 4,955,131 11
		2,496,866 800,000 1,157 71,934	5 2,495,939 6 1 150,000 - - 989 - - 71,934 -
		3,369,957	6 2,718,862 6
		8,540,349	16 7,673,993 17
		15,837,396 1,163,321 15,308,863 13,432,597 (136,868)	29 14,801,305 33 2 1,101,041 2 28 14,093,297 31 25 7,461,772 17 - (136,868) -
		45,605,309	84 37,320,547 83
		$ 54,145,658	100 44,994,540 100

[Total assets ] $ 54,145,658 100 44,994,540 100

The accompanying notes are an integral part of the parent company only financial statements.

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Lien Hwa Industrial Holdings Corporation

Parent Company Only Statements of Comprehensive Income

For the years ended December 31, 2023 and 2022

(Expressed in thousands of New Taiwan Dollars , except for earnings per common share)

2023	% 100	2022	% 100
Amount $ 2,056,458		Amount 1,710,460
53,947	3	48,319	3
2,002,511	97	1,662,141	97
2,799 403,701 (4,453) (119,383) 1,908,574	- 20 - (6) 93	860 549,437 483 (81,313) 1,769,773	- 32 - (5) 103
2,191,238	107	2,239,240	130
4,193,749 35,543	204 2	3,901,381 29,728	227 2
4,158,206	202	3,871,653	225
(114) 2,957,253 3,246,329 -	- 144 158 -	472 (1,154,201) (2,805,826) -	- (67) (164) -
6,203,468	302	(3,959,555)	(231)
(133,456) (80,507) -	(6) (4) -	116,845 245,021 -	7 14 -
(213,963)	(10)	361,866	21
5,989,505	292	(3,597,689)	(210)
$ 10,147,711	494	273,964	15
$	2.64		2.45
$	2.64		2.45

The accompanying notes are an integral part of the parent company only financial statements.

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Lien Hwa Industrial Holdings Corporation

Parent Company Only Statements of Changes in Equity

For the years ended December 31, 2023 and 2022

(Expressed in Thousands of New Taiwan Dollars)

Share capital Common stock share capital Additional paid-in capital $ 14,096,481 1,084,644		Retained earnings	Other equities
	Legal reserve
	3,792,668
- - - -	- -	- 3,871,653 - - - 36,938 361,866 (3,996,493)	- 3,871,653 - (3,597,689)
- -	-	- 3,908,591 361,866 (3,996,493) - 273,964
- - - - 704,824 - - (25,854) - 385 - 31,639 - 10,227 - -	426,648 - - - - - - -	- (426,648) - - - - - (2,537,366) - - - (2,537,366) - (704,824) - - - - - 54,160 - (54,160) - (25,854) - - - - - 385 - - - - 47,895 79,534 - - - - - 10,227 - 9,448 - (9,448) - -
14,801,305 1,101,041 - - - -	4,219,316 - -	141,843 9,732,138 26,492 7,435,280 (136,868) 37,320,547 - 4,158,206 - - - 4,158,206 - (4,484) (213,963) 6,207,952 - 5,989,505
- -	-	- 4,153,722 (213,963) 6,207,952 - 10,147,711
- - - - 1,036,091 - - (29,528) - 380 - 7,756 - 83,672 - -	397,220 - - - - - - -	- (397,220) - - - - - (1,924,170) - - - (1,924,170) - (1,036,091) - - - - - 2,077 - (2,077) - (29,528) - - - - - 380 - - - - - 7,756 - (1,059) - - - 82,613 - 21,087 - (21,087) - -
$ 15,837,396 1,163,321	4,616,536	141,843 10,550,484 (187,471) 13,620,068 (136,868) 45,605,309

The accompanying notes are an integral part of the parent company only financial statements.

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Lien Hwa Industrial Holdings Corporation

Parent Company Only Statement of Cash Flows

For the years ended December 31, 2023 and 2022

(Expressed in Thousands of New Taiwan Dollars)

Cash flow from operating activities: Net income before tax Adjustments: Income/expenses Depreciation expense Interest expense Interest income Dividend income Shareholding in the profit of the subsidiaries, affiliated companies and joint ventures under the equity method Income/expenses Changes in operating activities related assets and liabilities: Net changes in assets relating to operating activities: Notes receivable Other receivable Other current assets Net defined benefit assets Net changes in assets relating to operating activities Net changes in liabilities relating to operating activities: Other payable Reserve for liabilities Net changes in liabilities relating to operating activities Changes in operating activities related assets and liabilities Adjustments Cash outflow from operating activities Interest received Dividend received Interest paid Returned income tax (paid) Net cash inflow from operating activities	2023
	(4,252,111) (3,949,217)
	1,526 (1,526) (57) 67 982 (8,270) 119 174
	2,570 (9,555)
	7,782 (2,370) 168 127
	7,950 (2,243)
	10,520 (11,798)
	(4,241,591) (3,961,015)
	(47,842) (59,634) 2,620 860 1,962,501 1,910,094 (118,259) (58,896) (29,396) 3,252
	1,769,624 1,795,676

(Continued)

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Lien Hwa Industrial Holdings Corporation

Parent Company Only Statement of Cash Flows For the years ended December 31, 2023 and 2022

(Expressed in Thousands of New Taiwan Dollars)

Cash flow from investing activities: Acquisition of financial assets measured at fair values through other comprehensive profit or loss Refunds from decapitalization of financial assets measured at fair values through other comprehensive profit or loss Acquisition of investments under the equity method Acquisition of investment properties Net cash outflow from investing activities Cash flow from financing activities: Increase in short-term loans Increase (decrease) in short-term notes payable Proceeds from issuing bonds Borrowing of long-term loan Retirement of long-term loans Cash dividend distribution Other financing activities Net cash outflow from financing activities Current cash and cash equivalents increase (decrease) Opening balance of cash and cash equivalents Closing balance of cash and cash equivalents	2023 $ - 3,509 (303,918) (12,978)	2022 (273,917) 15,141 (100,000) -
	(313,387)	(358,776)
	- 199,992 - 650,000 - (1,924,170) 379	250,000 (799,876) 2,500,000 1,551,000 (2,501,000) (2,537,366) 300
	(1,073,799)	(1,536,942)
	382,438 36,589	(100,042) 136,631
	$ 419,027	36,589

The accompanying notes are an integral part of the parent company only financial statements.

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Lien Hwa Industrial Holdings Corporation Notes to the Parent Company Only Financial Statements

Lien Hwa Industrial Holdings Corporation

Notes to the Parent Company Only Financial Statements For the years ended December 31, 2023 and 2022

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

I. Company profile

Lien Hwa Industrial Holdings Corporation (Original name: Lien Hwa Industrial Corporation Hereinafter referred to as “the Company”.) was approved by the Ministry of Economic Affairs and founded in July, 1955. The Company merged with China Chemical Corporation on December 1, 2002. To become more competitive and improve the business performance, the Company performed organizational reconstructing and established a professional breakdown system. In the shareholder’s meeting on June 25, 2019, it was resolved that September 1, 2019 was the base date of company demerger. The flour business and the rental business were split in the form of surviving spin-off and transferred to the subsidiaries, Lien Hwa Milling Corporation and Lien Hwa Property Development Corporation, respectively. After the demerger and transformation, the main business became general investment. And was registered at 10F., No. 209, Sec.1, Nangang Rd., Nangang Dist., Taipei City, Taiwan, R.O.C.

II. Financial report approval date and procedures

The parent company only financial statements were approved and published by the Board of Directors on March 8, 2024.

III. Application of new standards, amendments and interpretations

(1) We have adopted the new standards, amendments and interpretations approved by the Financial Supervisory Commission.

The company has applied the following amended IFRS since January 1, 2023, and its application of such amended IFRS shall have little chance leading to material impacts in the parent company only financial statements.

‧ Amendments to IAS 1 "Disclosure of Accounting Policies"
‧ Amendments to IAS 8 "Definition of Accounting Estimates"
‧ Amendments to IAS 12 " Deferred Tax related to Assets and Liabilities arising from a Single Transaction"

The company has applied the following amended IFRS since May 23, 2023, and its application of such amended IFRS shall have little chance leading to material impacts in the parent company only financial statements.

‧ Amendments to IAS 12“International Tax Reform – Pillar Two Model Rules”
(2) Effect when the Company has yet to adopt the IFRSs approved by the FSC.

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Lien Hwa Industrial Holdings Corporation Notes to the Parent Company Only Financial Statements

The company evaluated that the application of the following amended IFRS since January 1, 2024 shall have little chance leading to material impacts in the parent company only financial statements.

‧ Amendments to IAS 1 “Classification of Liabilities as Current or Non-current”
‧ Amendments to IAS 1 “Non-current Liabilities with Covenants”
‧ Amendments to IAS 7 and IFRS 7 “Supplier Finance Arrangements”
‧ Amendments to IFRS 16 “Lease Liability in a Sale and Leaseback”
(3) New and amended standards and interpretations not yet recognized by FSC.

The company expected that the following other new and amended IFRSs that have not

yet been approved shall have little chance leading to material impacts in the financial statements.

‧ Amendments to IFRS 10 and IAS 28 "Sale or Contribution of Assets Between an Investor and Its Associate or Joint Venture"
‧ IFRS 17 “ Insurance Contracts” and amendments to IFRS 17 “ Insurance Contracts”
‧ Amendments to IAS21 “Lack of Exchangeability”

IV. Summary of Significant Accounting Policies

The summary of the significant accounting policies adopted by the parent company only financial statements is described as follows. The following accounting policies have been applied during the presentation period of the parent company only financial statements.

(I) Statement of compliance

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

(II) Basis for preparation
Basis for measurement

In addition to the following important items in the balance sheet, the parent company only financial statements were prepared based on the historical cost:

(1) Financial assets measured at fair value through other comprehensive profit or loss;
(2) Net defined benefit liabilities measured at the fair value of pension fund assets with the deduction of the present value of a defined benefit obligation and the ceiling effect described in note 4(11).
Functional currency and presentation currency
Each vehicle of the Company used the currency of the primary economic
environment as its functional currency. The parent company only financial statements were prepared in the Company’s functional currency, NT Dollar. All of the financial

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Lien Hwa Industrial Holdings Corporation Notes to the Parent Company Only Financial Statements

information presented in NTD should be held presented in NTD 1,000 as the currency unit.

(III) Foreign currency
Transactions in foreign currencies

Foreign currency transactions are converted into the functional currency using exchange rates on the date of transaction. Monetary foreign currency accounts as of the end of the reporting period (referred to as the reporting date) are converted into the functional currency using exchange rates on the reporting date.

The foreign currency non-monetary item measured at fair value is converted into functional currency in accordance with the exchange rate on the valuation date. The foreign currency non-monetary item valued at historical cost is converted in accordance with the exchange rates on the transaction date.

The foreign currency exchange difference generated from conversion shall be recognized in profit and loss. But under the circumstances below, it shall be recognized in other comprehensive income.

(1) Equity instrument designated to be measured at fair value through other comprehensive income;
(2) Financial liabilities designated as hedges of foreign institution’s net investment are within the effective hedge scope; or
(3) Qualified cash flow hedge is within the effective hedge scope.
Foreign operating agency

Assets and liabilities of foreign operations, including the goodwill and fair value adjustment generated at the time of acquisition, shall be converted into the presentation currency of the parent company only financial statements on the reporting date. Income and expenses are converted into presentation currency of the parent company only financial statements at the average exchange rate in the current period, and the exchange different generated therefor shall be stated as other comprehensive profit or loss.

When the disposal of a foreign operation causing a loss of control, loss of joint control, or significant influence, the cumulative exchange difference related to the foreign operation is entirely reclassified as profit or loss. If the disposal involves any subsidiary of the foreign operations, the relevant accumulated exchange difference shall be reclassified into the non-controlling interests on a pro rata basis. If the disposal involves any affiliate or joint venture of the foreign operations, the relevant accumulated exchange difference shall be reclassified into income or loss on a pro rata

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Lien Hwa Industrial Holdings Corporation Notes to the Parent Company Only Financial Statements

basis.

If no repayment program is defined with respect to monetary item receivable or payable of the foreign operations and it is impossible to settle in the foreseeable future, the foreign currency exchange gain or loss generated therefor shall be held as a part of the net investment of the foreign operations and recognized as other comprehensive profit or loss.

(IV) Classification of assets and liabilities as current and non-current

Assets that meet any of the following criteria are classified as current assets; assets other than the current assets are classified as non-current assets:

Assets expected to be realized, intent to be sold or consumed over the normal operating cycles;
Assets held primarily for the trading purpose;
Assets expected to be realized within 12 months after the reporting period; or
Assets in cash or cash equivalents, except for those that are used for an exchange or to settle a liability, or otherwise remain restricted in more than 12 months after the reporting period.
Liabilities that meet any of the following criteria are classified as current liabilities;
liabilities other than current liabilities are classified as non-current liabilities:
Liabilities expected to be settled over the normal operating cycles;
Liabilities held primarily for the trading purpose;
Liabilities expected to be settled within 12 months after the reporting period; or
Liabilities whose settlement period may not be unconditionally extended for at least 12 months after the reporting period. Liabilities under the terms that give counterparties the option to repay in the form of equity instruments and without the effect on their classification due to such terms
(V) Cash and cash equivalent

Cash includes cash reserves and current deposit balance. Cash equivalent includes short-term and highly liquid investments that are readily convertible to known amounts of cash with insignificant risk of changes in value. The time deposits that fall into the above definition and are intended to satisfy the short-term cash commitment instead of investment or other purposes shall be stated as cash or cash equivalents.

For the time deposits with an initial maturity date that is within a year intended to satisfy the short-term cash commitment instead of investment or other purposes, they are readily convertible into fixed amounts of cash at any time and subject to an insignificant risk of changes in value. Therefore, they shall be stated as cash or cash equivalents.

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Lien Hwa Industrial Holdings Corporation Notes to the Parent Company Only Financial Statements

(VI) Financial instruments

Accounts receivable and debt securities issued are recognized at time of generation. All other financial assets and financial liabilities are recognized when the Company becomes a contracting party of the terms and conditions of the financial instruments concerned. For the financial assets that are not measured at fair value through profit or loss (excluding accounts receivable that comprises material financial parts) or financial liabilities shall be initially evaluated based on the fair value, plus the directly attributable acquired or issued transaction cost. Accounts receivable that comprises material financial parts shall be initially measured based on the transaction price.

Financial assets

For the financial assets that are purchased or sold in accordance with the general trade practice, and the financial assets that are classified in the same way, the Company processes the purchase and sale in accordance with the trade date accounting.

The financial assets can be classified into the following categories during the initial recognition: financial assets measured at amortized cost and the equity instrument investment measured at fair value through other comprehensive income. When, and only when, the Company changes its business model for managing financial assets, it must reclassify all affected financial assets from the first day of the reporting period.

(1) Financial assets measured at amortized cost

The financial asset that meets the following criteria and is not designated to be measured at fair value through profit and loss shall be measured at amortized cost:

・ The asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows.
・ The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

The above assets are measured at initial recognition value plus or minus, and the accumulated amortization is calculated with the effective interest method. And the amortized cost of the loss allowance is adjusted before the measurement. The interest revenue, foreign currency exchange gain or loss and impairment are recognized in profit or loss. During derecognition, the profit or loss is recognized in profit or loss.

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Lien Hwa Industrial Holdings Corporation Notes to the Parent Company Only Financial Statements

(2) Financial assets measured at fair values through other comprehensive profit or loss

The debt instrument investment that meets the following criteria and is not designated to be measured at fair value through profit and loss shall be measured at fair value through other comprehensive profit or loss:

・ The asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows or to sell.
・ The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

The Company may, at initial recognition, irrevocably make a choice to recognize the later fair value change of the equity instrument investment held not for transaction in other comprehensive profit or loss. The above choice is made on the basis of the instrument-by-instrument approach.

The debt instrument investment shall be measured at fair value. The interest revenue, foreign currency exchange gain or loss and impairment calculated using the effective interest method are recognized in profit or loss. Other net profit or loss is recognized in other comprehensive profit or loss. When derecognizing, the accumulated amount of other comprehensive profit or loss will be reclassified as profit or loss.

The equity instrument investment shall be measured at fair value. Dividend income (excluding obvious recovery of partial investment cost) is recognized in profit or loss. Other net profit or loss is recognized in other comprehensive profit or loss and will not be reclassified as profit or loss.

Dividend income of the equity investment will be recognized on the day when the Company has the right to collect the dividend income (usually the ex-dividend date).

(3) Impairment of financial assets

The Company recognizes the expected credit losses of the financial assets measured at amortized cost (including cash and cash equivalents, financial assets measured at amortized cost, notes and accounts receivable, other receivables, guaranteed deposits paid and other financial assets) in loss allowance.

The loss allowance of the following financial asset is measured at 12-month expected credit losses. The other is measured at expected credit losses of the duration:

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Lien Hwa Industrial Holdings Corporation Notes to the Parent Company Only Financial Statements

・ The determined credit risk of the debt security on the reporting date is low; and
・ The credit risk of other debt securities and bank deposits (i.e. the default risk happened throughout the expected duration of the financial instrument) does not increase significantly after the initial recognition.

The loss allowance of accounts receivable is measured at the expected credit losses throughout the duration.

When determining whether the credit risk has increased significantly after the initial recognition, the Company shall take reasonable and supporting materials into consideration (acquired through not too much cost and effort), including qualitative and quantitative data. Besides, the experience of the Company, credit assessment and forward-looking information shall be used for the analysis.

The expected credit loss is the weighted credit loss rate estimation of the financial instrument throughout the expected duration. The credit loss is measured at present value of the all cash shortfalls. The cash shortfall is the difference between the contractual cash flow that the Company can collect and the cash flow the Company expects to collect. The expected credit loss uses the effective rate of the financial asset for discount.

The Company assesses whether credit impairment has occurred on every reporting date based on financial assets measured at amortized cost and debt securities measured at fair value through other comprehensive profit or loss. When one or several matters that will negatively affect the estimated future cash flow of financial assets happen, the credit impairment occurs. The evidence that proves the credit impairment of financial assets includes the following observable information:

・ The borrower or issuer has major financial difficulty;
・ Contract default. Such as overdue or non-performance of payment for over 180 days.
・ Due to economic or contractual reason with respect to the borrower’s financial difficulty, the Company compromises on things it would not give in.
・ The borrower is likely to file for bankruptcy or proceed with other financial reorganizations; or
・ The active market of financial assets might extinguish due to financial difficulty.

The loss allowance of financial assets measured at amortized cost is

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Lien Hwa Industrial Holdings Corporation Notes to the Parent Company Only Financial Statements

deducted from the book value of assets.

When the Company cannot reasonably expect all or parts of the recovered financial assets, it will reduce the total book value of its financial assets directly. For company customers, the Company analyzes the write-off time and amount respectively based on whether it can reasonably expect the recovery. The Company expects the written-off amount will not result in significant reversal. However, the enforcement of the written-off financial assets can still be performed to be in conformity with the procedure for the Company to recover the overdue amount.

(4) Derecognition of financial assets

The Company derecognizes financial assets only when the contractual rights on the cash flow of the assets are terminated, or financial assets are transferred and almost full risk and return of the asset ownership are transferred to other business, or almost full risk and return of the ownership is not transferred or retained and the control of financial assets is not retained.

For the transaction of financial assets transfer signed by the Company, when reserving almost full risk and return of the transferred asset ownership, it is still recognized in the balance sheet.

Financial liabilities and equity instruments
(1) Classification of liabilities or equity

The obligation and equity instruments issued by the Company are classified into financial liabilities or equities according to definitions of the financial liabilities and equity instruments referred to in an agreement.

(2) Equity transaction

Equity instruments are the contracts that evidence a residual interest in the assets of the Company after deducting all of its liabilities. The equity instruments issued by the Company shall be recognized based on the payment of acquisition less the direct issuing cost.

(3) Treasury stocks

When repurchasing the equity instrument that has been recognized by the Company, the consideration paid for the repurchase (including directly attributable costs) is recognized as equity loss. The share that is repurchased is classified as treasury stock. The collected amount of the sale or repurchase of treasury stocks will be recognized as equity increase. The surplus or deficit result from the transaction will be recognized as additional paid-in capital or retained

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Lien Hwa Industrial Holdings Corporation Notes to the Parent Company Only Financial Statements

earnings (if the additional paid-in capital is insufficient for write-off).

(4) Financial liabilities

Financial liabilities can be classified as the liabilities measured at amortized cost or the liabilities measured at fair value through profit or loss. If the financial liabilities are held for trading, are derivatives or designated during initial recognition, the financial liabilities will be measured at fair value through profit or loss. The financial liabilities that are measured at fair value through profit or loss measured at fair value will be recognized in profit or loss. This applies to relative net profit and loss, including any interest payment.

Other financial liabilities are measured at amortized cost using the effective interest method. The interest payment and exchange gain or loss are recognized in profit or loss. Any profit or loss is recognized in profit or loss when derecognizing.

(5) Derecognition of financial liabilities

The Company will have the financial liabilities derecognized when the contractual obligation is performed, discharged, or expired. When the financial liabilities clauses are modified and the cash flow of the modified liabilities has significant difference, the original financial liabilities will be derecognized and the new financial liabilities will be recognized at fair value based on the modified clauses.

When removing financial liabilities from the balance sheet, any differences between the book value and the amount paid or payable (including any non-cash assets transferred and any liabilities assumed as part of the arrangement) are recognized through profit and loss.

(6) Offset of financial assets and liabilities

Financial assets and liabilities may be offset against each other and reported in the balance sheet in net amount only when the Company is entitled to such offset exercisable under laws and intends to settle in net amount, or assets are realized and liabilities are repaid at the same time.

(VII) Investment in Affiliated enterprise

Affiliated enterprise is the one that the Company has significant influence on and no control of joint control over its financial and operating policies.

The equities of the Company in the affiliated enterprise are disposed under equity method. Under the equity method, the original acquisition is recognized at cost and the investment cost includes the transaction cost. The book value of investments in an affiliated

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Lien Hwa Industrial Holdings Corporation Notes to the Parent Company Only Financial Statements

enterprise includes the goodwill identified in original investment net of any accumulated impairment loss.

The parent company only financial statements shall include the profit and loss from the invested affiliates recognized subject to the equity ratio and other comprehensive income upon adjustment made in line with the Company’s accounting policy, from the date when the Company has major influence till the date when the Company loses the major influence. When changes to equity irrespective of profit and loss or comprehensive income occur to an affiliated enterprise with no impact on the shareholding ratio of the Company, the Company’s share of such changes in equity will be recognized as additional paid-in capital based on the shareholding ratio.

The unrealized gain and loss deriving from the transactions between the Company and the affiliated enterprise are recognized in the financial statement of the enterprise within the scope of equity of the non-related investor in the affiliated enterprise.

Recognition of the loss stops when the loss of the affiliated enterprise recognized proportionally by the Company equals or exceeds its equity in the affiliated enterprise; also, only recognizes additional loss and related liabilities are recognized only upon occurrence of a legal obligation, constructive obligations, or prepayment made on behalf of the invested company.

The investment is no longer recognized under equity method from the date on which the Company stops the investment in the affiliated enterprise. The preserved equity is measured at fair value. The difference between the fair value and the disposal amount of the preserved equity and the book value of investment on the date on which the equity method is not adopted is recognized as current profit and loss. Where the accounting treatment for the values related to the investment as recognized into other comprehensive income previously is identical with the basis for the affiliated enterprise's direct disposition of related assets or liabilities, namely, when the related assets or liabilities are disposed, the gain or loss recognized in other comprehensive profit or loss previously is to be reclassified as retained earnings. If the ownership interest of the company in the affiliated enterprise decreases but remains under the equity method, the company will follow the method stated above to reclassify and adjust the gain or loss recognized in other comprehensive profit or loss previously relating to such ownership interest decrease based on the decline ratio. (VIII) Investment in subsidiaries

In compiling the parent company only financial statements, the Company shall evaluate the investee of which the company has dominant control under the equity method. Under the equity method, income of current period and other comprehensive incomes as

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Lien Hwa Industrial Holdings Corporation Notes to the Parent Company Only Financial Statements

presented in the parent company only financial statements shall be identical with the income of current period and other comprehensive incomes attributable to the proportion allocated to the parent shareholder as presented in the financial statement prepared on the basis of consolidation. The shareholders’ equity as presented in the parent company only financial statements shall be identical with the parent shareholders’ equity as presented in the financial statement prepared on the basis of consolidation.

If the Company’s equity ownership change in a subsidiary does not result in the loss of control of the subsidiary, it is treated as equity transaction with the shareholders.

(IX) Investment property

Investment property is held for earning rent income or for capital appreciation, or both, rather than for normal business operation, for sale, used in production, for supply of goods or services, or for administrative purposes. Investment property is initially measured at cast and then subsequently measured at cost subtracting by accumulated depreciation and Impairment. The depreciation methods, life duration and residual values of investment property are same as the practice of the property, plant, and equipment.

The gain or loss on disposal of investment property (calculated based on the difference between the net disposal proceeds and the book value of such item) is recognized in profit and loss.

The rent income arising from investment property is recognized as rent income in accordance with the straight-line method over the lease period. Also, the given lease incentives is recognized as part of the overall rent income over the lease period. (X) Impairment of non-financial assets

The Company shall assess whether the book value of the non-financial assets (except the inventories and deferred tax assets) has any possible sign of impairment. In case of any possible sign of impairment, the company shall estimate the recoverable amount of such asset. Goodwill is tested regularly for impairment every year.

For the purpose of impairment testing, inflow the cash to one of the asset groups that has most cash inflow independent from other individual assets or asset groups as the minimum identifiable asset group. The goodwill acquired in a business consolidation shall be allocated to the consolidated company’s cash-generating units or cash-generating group that is expected to benefit from the synergies of the consolidation effort.

The collectible amount shall be the higher of the fair value of individual asset or cash generation unit less the disposal cost and the value in use. When assessing the value in use, the estimated future cash flow is discounted to current value by pre-tax discount rate. The pre-tax discount rate shall reflect the specific risk assessment of the current market toward

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Lien Hwa Industrial Holdings Corporation Notes to the Parent Company Only Financial Statements

the time value of money and the asset or cash generation unit.

If the collectible amount of individual asset or cash generation unit is less than the book value, the amount shall be recognized as impairment loss.

The impairment loss is immediately recognized as income and the book value of each amortized cash-generating unit shall be reduced first, then the book values of other assets shall be reduced based on each book value ratio of each asset in the unit.

The impairment loss on goodwill shall not be reversed. The non-financial assets other than goodwill can only be reversed within the book value of the asset (less depreciation or amortization) without impairment loss recognized in the previous year.

(XI) Employee benefits
Defined contribution plan

The obligation of defined contribution plan is recognized as expense during the service period of the employee. The prepaid contribution may be recognized as assets, insofar as it may result in the refunding of cash or the reduction of future payment.

Defined benefit plan

The net obligation of the defined benefit plan by the Company is converted to the present value based on the future benefit earned from the services provided by the employees in the current period or in the past subtracting the fair value of the plan assets.

A qualified actuary using the Projected Unit Credit Method estimates defined benefit obligations each year. When the calculation result may be favorable to the Company, the assets recognized shall be no more than the refund under the plan or the present value of economic benefit to be earned by decrease in the contribution under the plan. The calculation of present value of economic benefit shall take into consideration the minimum funding contribution needed.

The re-measurement of net defined benefit liability, including the actuarial income, return on remuneration of planned assets (excluding interest) and any change in the asset cap effect (excluding interest), is immediately recognized in other comprehensive income and accumulated in the retained earnings. The Company determines the net interest expense (income) of the net defined benefit liability (assets) by the net defined benefit liability (assets) and discount rate determined during the start of the reporting period. The net interest expense of the net defined benefit liability and other expenses are recognized as income.

When the plan is modified or reduced, the benefit variance generated in relation to the previous service cost or impaired gain or loss is immediately recognized as

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Lien Hwa Industrial Holdings Corporation Notes to the Parent Company Only Financial Statements

income. In the event of settlement of the Company, recognize the profits and loss of settlement of the welfare plan.

Other long-term employee benefits

The net obligation of other long-term employee benefits by the Company is converted to the present value based on the future benefit earned from the services provided by the employees in the current period or in the past. The re-measurement is recognized as income upon occurrence.

Short-term employee benefits

Short-term employee benefit obligation shall be recognized as expense when the service is provided by the employee. If the Company has a present statutory or presumed benefit obligation due to the past service provided by employee and such obligation may be estimated reliably, the amount shall be recognized as liabilities.

(XII) Income tax

The income tax consists of current income tax and deferred income tax. The current income tax and deferred income tax shall be recognized in profit or loss, other than the income tax related to combined entities, and items stated into other comprehensive income or stated into equity directly.

The current income tax includes the projected income tax payable or tax refund receivable based on the current taxable income (loss), and the adjustment on income tax payable or tax refund receivable in the previous years. The amount refers to the best estimates of the expected payables or receivables measured on the basis of the statutory tax rate or tax rate substantially enacted on the reporting date.

The deferred income tax is recognized based on the book value of assets and liabilities for the purpose of financial reporting and temporary difference generated from the taxation basis for assets and liabilities. No deferred income tax will be recognized in the case of the temporary difference generated under the following circumstances:

Assets or liabilities recognized initially in the transactions other than combined business, and the accounting profit and taxable income (loss) remain unaffected at the time of transaction.
Taxable temporary difference generated from investment in subsidiaries, affiliates and joint ventures, of which the time of reverse is controllable by the Company and which is not likely to be reversed in the foreseeable future;
Taxable temporary difference generate from the initial recognition of goodwill. The unused taxation loss and unused income tax credit carry-forward and deductible

temporary difference shall be stated as deferred income tax assets when the temporary difference is very likely to credit against the future taxable income. Meanwhile, revaluation shall be conducted on each reporting date, so that the related income tax gains may be

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Lien Hwa Industrial Holdings Corporation Notes to the Parent Company Only Financial Statements

adjusted or decreased when they are not likely to be realized; or when it is very likely that there will be sufficient taxable income afford to reverse the decreased amount.

The deferred income tax is measured at the tax rate prevailing when the temporary difference is reversed, and based on the statutory tax rate or tax rate substantially enacted on the reporting date.

The company will offset deferred income tax assets and deferred income tax liabilities only when the following conditions are satisfied:

When the company is entitled to the right to offset the current income tax assets against the current income tax liabilities; and
The deferred income tax assets and deferred income tax liabilities are related to the subjects on whom the same tax collection authority imposed the income tax;
(1) The same tax collection subject; or
(2) Different subjects, but each subject desires to repay the assets and liabilities on a net basis or concurrently realize and repay the assets and liabilities in each of the following periods in which the major deferred income tax assets are expected to recovered and deferred income tax liabilities are expected to be repaid.

(XIII) EPS

The company lists the basic and diluted earnings per share of the common stock shareholders of the Company. The Company’s basic earnings per share is based on the profit or loss of the Company’s common stock shareholder divided by the weighted average number of outstanding common stock shares of the period. The diluted EPS is calculated upon adjustment of the effect of all potential diluted common stocks based on the income vested in the common stock holders and the number of shares of the weighted average outstanding common stock.

(XIV) Department information

The Company had department information disclosed in the consolidated financial statements; therefore, the department information was not disclosed in the parent company only financial statements.

V. Significant accounting judgments, estimations and major sources of assumption uncertainty

When the management has the parent company only financial statements prepared in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers”, it is necessary to make judgments, estimations, and assumptions that are influential to the accounting policies adopted and the assets, liabilities, and income and expenses amount reported. Actual results may differ from those estimations.

The management continues to review estimations and assumptions. Changes in accounting estimates will be recognized in the period of change and future periods affected.

For the significant judgments involved in accounting policies and the influential information

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Lien Hwa Industrial Holdings Corporation Notes to the Parent Company Only Financial Statements

to the amount recognized in the parent company only financial report, please refer to the following notes:

(1) Determining the company's substantial control over an investee. Please refer to the 2023 consolidated financial report.

VI. Description of significant accounting items

(1) Cash and cash equivalent

Demand deposit Time deposit Cash and cash equivalents listed in the Statement of Cash	December 31, 2023 $ 71,928 347,099	December 31, 2022 34,076 2,513
	$ 419,027	36,589

Flows:

For the interest rate risk and sensitivity analysis disclosure of the Company’s financial assets and liabilities, please refer to note 6(18).

(2) Notes receivable

Others	December 31, 2023		December 31, 2022 1,526
	$ -

The financial assets stated above has not been used as long-term loan and financing guarantee.

(3) Financial assets at fair value through other comprehensive income

Equity instruments at fair value through other comprehensive income: Stock listed in domestic markets Stock unlisted in domestic markets Total	December 31, 2023 $ 10,847,626 62,594	December 31, 2022 7,873,416 83,060
	$ 10,910,220	7,956,476

The dividend income from the aforementioned equity instrument investment measured at fair value through other comprehensive profit or loss were NT$ 403,701 thousand and NT$ 549,437 thousand for the years 2023 and 2022.

The Company has not transferred any accumulated gain and loss of the equity from the undisposed strategic investments in 2023 and 2022.

For the credit risk and market risk information, please refer to note 6(18).

The financial assets stated above has not been used as collaterals.

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Lien Hwa Industrial Holdings Corporation

Notes to the Parent Company Only Financial Statements

(4) Other receivables

Other receivables
Other receivables-related parties Others Total	December 31, 2023 $ 37,500 556	December 31, 2022 - 320
	$ 38,056	320

According to the historical experience, other receivables stated above is estimated to have no expected credit losses generated since there are no defaults throughout the duration, therefore the rate of its expected credit losses is estimated to be zero.

The above Other receivables-related parties, please refer to Note 7.

(5) Investment under equity method

The company’s investment under equity method on the reporting date is as follows:

Subsidiary Affiliates	December 31, 2023 $ 24,275,473 18,474,180	December 31, 2022 20,662,475 16,321,320
	$ 42,749,653	36,983,795

1. Subsidiaries

Please refer to the 2023 consolidated financial report.

2. Affiliates

The information about affiliates important to the Company is stated as follows:

Name of Affiliate	Nature of relationship with the Company	Principal business place/country where the company is registered	Proportion of ownership and voting right	Proportion of ownership and voting right
			December 31, 2023 32.07% 50.00%	December 31, 2022 32.28% 50.00%
UPC Technology Corp. Linde Lienhwa Industrial Gases Co.,	The affiliate of the Company which primarily engaged in producing and selling organic acid, acid anhydride and its derivatives, plastic toughener. The affiliate of the Company which primarily engaged in manufacturing liquid	Taiwan Taiwan

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Lien Hwa Industrial Holdings Corporation Notes to the Parent Company Only Financial Statements

Ltd. and industrial gases such as helium, hydrogen and ethyne.

Ltd. and industrial gases such as helium, hydrogen and ethyne.
For listed affiliates important to the Company,	its	fair value is stated as follows:
	December 31,		December 31,
		2023	2022
UPC Technology Corporation and its subsidiaries	$	6,458,191	5,778,381

The summarized financial information of affiliates important to the Company are shown below. The financial information has adjusted the amounts included in each affiliated enterprise’s consolidated financial statements adopting the IFRSs to reflect the fair value adjustment made by the Company upon the acquisition of the affiliate stock and adjustment made according to the accounting policy differences:

(1) Summarized financial information of the UPC Technology Corporation and its subsidiaries

Current assets Non-current assets Current liabilities Non-current liabilities Net assets Net assets attributable to investee Operating revenue Net profit (loss) of continuing department Other consolidated income/loss Total comprehensive income Total comprehensive income attributable to investee The Company’s shares of the affiliated enterprise's net assets at the beginning Total comprehensive income attributable to the Company in current period Dividend acquired from affiliates in current period Book value concerning the Company’s equity in	December 31, 2023 $ 20,812,329 34,844,340 (8,634,420) (16,972,718)	December 31, 2022 19,881,526 30,680,896 (14,197,217) (10,259,003)
	$ 30,049,531	26,106,202
	$ 30,049,531	26,106,202
	2023 $ 73,196,046	2022 72,864,607
	$ (282,826) 4,403,273	(1,236,224) (1,316,153)
	$ 4,120,447	(2,552,377)
	$ 4,120,447	(2,552,377)
	$ 8,336,234 1,295,370 (84,976)	9,616,088 (854,973) (424,881)
	$ 9,546,628	8,336,234

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Lien Hwa Industrial Holdings Corporation Notes to the Parent Company Only Financial Statements

affiliates at the ending

(2) Summarized financial information of the Linde Lienhwa Industrial Gases Co., Ltd. and its subsidiaries

Current assets Non-current assets Current liabilities Non-current liabilities Net assets Net assets attributable to non-controlling equity Net assets attributable to investee Operating revenue Net profit from continuing operations Other consolidated income/loss Total comprehensive income Total comprehensive income attributable to non-controlling equity Total comprehensive income attributable to investee The Company’s shares of the affiliated enterprise's net assets at the beginning Total comprehensive income attributable to the Company in current period Dividend acquired from affiliates in current period Book value concerning the Company’s equity in affiliates at the ending	December 31, 2023 $ 14,100,755 40,574,086 (20,865,255) (5,515,673)	December 31, 2022 15,601,279 38,889,221 (25,515,670) (5,568,284)
	$ 28,293,913	23,406,546
	$ 4,082,843	3,759,147
	$ 24,211,070	19,647,399
	2023 $ 36,629,844	2022 34,817,055
	$ 7,974,208 (237,673)	7,843,068 144,786
	$ 7,736,535	7,987,854
	$ 939,166	1,004,759
	$ 6,797,369	6,983,095
	$ 9,825,496 3,399,189 (1,050,000)	8,313,418 3,069,635 (1,557,557)
	$ 12,174,685	9,825,496

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Lien Hwa Industrial Holdings Corporation Notes to the Parent Company Only Financial Statements

The financial information about the individually unimportant affiliates of the Company under equity method is summarized as follows. The financial information refers to the amounts included into the parent parent company only financial statements of the Company:

Summarized book value of equity in individually unimportant affiliate at the ending Shares attributed to the Company: Net profit from continuing operations Other consolidated income/loss Total comprehensive income	December 31, 2023 $ 89,303	December 31, 2022 84,146
	2023 $ 7,555 -	2022 7,768 -
	$ 7,555	7,768

3. Collateral

As of December 31 2023 and 2022, the affiliated enterprise investment of the Company under the equity method had not been pledged as collateral or were restricted.

(6) Investment property

The changes in the cost and depreciation of the Company’s investment property in

2023 and 2022 are as follows:

Self-owned assets Land and improvements Building and structure $ 3,395 - 8,388 4,590	Self-owned assets Land and improvements Building and structure $ 3,395 - 8,388 4,590	Total 3,395 12,978
Land and improvements $ 3,395 8,388
$ 11,783	4,590	16,373
$ 3,395	-	3,395
$ - -	- 38	- 38
$ -	38	38
$ -	-	-

( Same as balance, January 1, 2022 )

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Lien Hwa Industrial Holdings Corporation

Notes to the Parent Company Only Financial Statements

Self-owned assets Land and improvements Building and structure $ 11,783 4,552	Self-owned assets Land and improvements Building and structure $ 11,783 4,552	Self-owned assets Land and improvements Building and structure $ 11,783 4,552	Total 16,335
Land and improvements $ 11,783
$ 3,395	-		3,395
$ 3,395	-		3,395
		$ 59,260
		$ 41,840
		$ 43,240

The fair value of investment property is based on the evaluation of the company personnel (with relevant experience and has relevant experience recently in the location and type of the investment property) in compliance with the property evaluation method of the Company. The evaluation technology of the fair value uses Class III for input. The evaluation performs the market value assessment based on the comparison approach of the Regulations on Real Estate Appraisal.

As of December 31 2023 and 2022, the investment property of the Company had not been pledged as collateral or were restricted.

(7) Short-term loan

December 31, 2023 $ 3,250,000 1,600,000	December 31, 2023 $ 3,250,000 1,600,000	December 31, 2022 2,900,000 1,950,000
$ 4,850,000		4,850,000
$ 3,660,575		4,010,650
	1.65%~1.71%	1.38%~1.68%

As of December 31 2023 and 2022, the subsidiary-Lien Hwa Property Development Corporation provided property, plant, and equipment and investment property as guarantee for bank loans. Please refer to Note 7 for details.

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Lien Hwa Industrial Holdings Corporation

Notes to the Parent Company Only Financial Statements

(8) Short-term notes payable

December 31, 2023 $ 200,000 (8)	December 31, 2023 $ 200,000 (8)	December 31, 2022 - -
$ 199,992		-
$ 830,000		1,330,000
	1.45%~1.51%	-

For loan term within a year, please refer to note 6(17) for relevant interest expense.

(9) Bonds payable

The details of the Company’s bonds payable are as follows:

Domestic guaranteed non-convertible corporate bonds	December 31, 2023 $ 2,496,866	December 31, 2022 2,495,939

The domestic guaranteed corporate bonds issuance conditions of the consolidated are as follows:

The domestic guaranteed corporate bonds as follows:	issuance conditions of the consolidated are
	Domestic guaranteed
	corporate bonds of
	2022
Total issuance	2,500,000
Ending balance	2,500,000
Due within one year	-
Release date	May 17, 2022
Issue period	5 years
Coupon rate	1.30%
Bond Interest Base Date	May 17, 2022
Repayment situation	Bullet repayment.

(10) Long-term loan

The details, conditions and terms of the Company’s long-term loan are as follows:

Unguaranteed bank loans Outstanding quota Interest rate interval Expiry date	December 31, 2023 $ 800,000	December 31, 2023 $ 800,000	December 31, 2022 150,000
	$ 3,000,000		4,050,000
		1.70% 2025.08.22~2025.09.12	1.73% 2025.08.22

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Lien Hwa Industrial Holdings Corporation Notes to the Parent Company Only Financial Statements

(11) Employee benefits

1. Defined benefit plan

For the present value of the Company’s defined benefit obligations and the fair value of the plan assets, the adjustments are as follows:

Present value of defined benefit obligation The fair value of plan assets Net defined benefit assets	December 31, 2023 $ 1,933 (6,939)	December 31, 2022 1,555 (6,794)
	$ (5,006)	(5,239)

Contributions for defined benefit plans of the Company are appropriated to a dedicated pension fund account opened with Bank of Taiwan. The pension payment to each employee that is subject to the Labor Standards Act is based on the pension point received for the years of service and the average salary six months prior to the retirement.

(1) Composition of plan assets

The pension fund appropriated by the Company in accordance with the Labor Standards Act is managed by the Bureau of Labor Funds, Ministry of Labor (referred to as the “Bureau of Labor Funds” hereinafter). According to the “Guidelines for Labor Pension Fund Safekeeping and Implementation,” the annual minimum yield generated from the use of fund may not be less than the interest income generated from a local bank’s two-year time deposit.

The Company’s labor pension fund account at the Bank of Taiwan is with a balance of NT$6,939 thousand as of the reporting date. For information of the Labor Pension Fund Asset Management, including the fund yield rate and pension asset allocation, please refer to the website of the Bureau of Labor Funds, Ministry of Labor.

(2) Changes in the present value of defined benefit obligation:

The details of changes in the present value of the Company’s defined benefit obligation in 2023 and 2022 are as follows:

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Lien Hwa Industrial Holdings Corporation

Notes to the Parent Company Only Financial Statements

2023 Present value of defined benefit obligation, January 1$ 1,555 Current service cost and interest 238 Re-measurement of net defined benefit liabilities (assets) `－`Actuarial gains/losses due to change of financial assumption 127 `－`Actuarial gains/losses due to empirical adjustment 13 Present value of defined benefit obligation, December 31 $ 1,933	2023 Present value of defined benefit obligation, January 1$ 1,555 Current service cost and interest 238 Re-measurement of net defined benefit liabilities (assets) `－`Actuarial gains/losses due to change of financial assumption 127 `－`Actuarial gains/losses due to empirical adjustment 13 Present value of defined benefit obligation, December 31 $ 1,933	2022 1,323 213 (586) 605
	$ 1,933	1,555

(3) Changes in the fair value of plan assets

The details of changes in the fair value of the Company’s defined benefit plan assets in 2023 and 2022 are as follows:

Fair value of plan assets, January 1 Interest income Re-measurement of net defined benefit liabilities `－`Return on remuneration of planned assets (excluding current interest) Fair value of plan assets, December 31	2023 $ 6,794 119 26	2022 6,264 39 491
	$ 6,939	6,794

(4) Expenses recognized in profit or loss

The details of expenses recognized in profit or loss by the Company in 2023 and 2022 are as follows:

and 2022 are as follows:
Current service cost Net interest of net defined benefit liabilities (assets) Management expense	2023 $ 211 (92)	2022 205 (31)
	$ 119	174
	$ 119	174

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Lien Hwa Industrial Holdings Corporation Notes to the Parent Company Only Financial Statements

(5) Actuarial assumptions

Actuarial assumptions
The Company’s principal	actuarial assumptions are as follows:
	December 31,	December 31,
	2023	2022
Discount rate	1.50%	1.75%
Future raise rate	2.25%	2.25%

The Company does not expect to contribute to the defined benefit plan within one year from the 2023 reporting date.

The weighted average duration of the defined benefit plan is 27.6 years.

(6) Analysis of sensitivity

The influence of changes in the adopted principal actuarial assumptions on the present value of defined benefit obligations in December 31, 2023 and 2022 are as follows:

December 31, 2023 Discount rate Future raise rate December 31, 2022 Discount rate Future raise rate		Effect on defined benefit obligation	Effect on defined benefit obligation
	Increase 0.25% $ (127) 134 $ (105) 112		Decrease 0.25%
			137 (125) 113 (104)

Said analysis of sensitivity refers to the analysis of the effect produced by any change of single hypothesis under the circumstance that the other hypotheses remain unchanged. In practice, a lot of changes in hypotheses might be linked with each other. The analysis of sensitivity adopted the same method used for calculation of net benefit liabilities on the balance sheet.

The methods and hypotheses used by the analysis of sensitivity prepared in the current period are identical with those used in the previous period.

2. Defined contribution plan

The Company’s defined contribution plan is based on the Labor Pension Act. An amount equivalent to 6% of the monthly wages is appropriated to the personal labor pension accounts of the Bureau of Labor Insurance. In this plan, after appropriating a fixed amount to the Bureau of Labor Insurance, the Company has no legal or constructive obligation to make additional contribution.

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Lien Hwa Industrial Holdings Corporation Notes to the Parent Company Only Financial Statements

The Company’s pension expense as of 2023 and 2022 under the defined contribution plan amounted to NT$410 thousand and NT$390 thousand, respectively, and it has been appropriated to the Bureau of Labor Insurance already.

(12) Income tax

1. Income tax expenses

The details of income tax expenses of the Company in 2023 and 2022 are as follows:

Income tax expenses in current period Generated in current period Deferred income tax expenses Occurrence and reversal of temporary difference Income tax expenses	2023 $ 35,759	2022 29,749
	(216)	(21)
	$ 35,543	29,728

The relationship between the Company’s income tax expenses and net income before tax in 2023 and 2022 is adjusted as follows: 2023 2022 Net income before tax $ 4,193,749 3,901,381 Income tax calculated based on the income tax rate of the country the Company operates $ 838,749 780,276 Nontaxable income (538,496) (573,911) Adjustment not attributable to temporary difference (295,035) (206,386) Unrecognized changes in temporary difference (212) - Imposition on undistributed earnings 30,537 29,749 Total $ 35,543 29,728	The relationship between the Company’s income tax expenses and net income before tax in 2023 and 2022 is adjusted as follows: 2023 2022 Net income before tax $ 4,193,749 3,901,381 Income tax calculated based on the income tax rate of the country the Company operates $ 838,749 780,276 Nontaxable income (538,496) (573,911) Adjustment not attributable to temporary difference (295,035) (206,386) Unrecognized changes in temporary difference (212) - Imposition on undistributed earnings 30,537 29,749 Total $ 35,543 29,728	The relationship between the Company’s income tax expenses and net income before tax in 2023 and 2022 is adjusted as follows: 2023 2022 Net income before tax $ 4,193,749 3,901,381 Income tax calculated based on the income tax rate of the country the Company operates $ 838,749 780,276 Nontaxable income (538,496) (573,911) Adjustment not attributable to temporary difference (295,035) (206,386) Unrecognized changes in temporary difference (212) - Imposition on undistributed earnings 30,537 29,749 Total $ 35,543 29,728
	$ 838,749 (538,496) (295,035) (212) 30,537	780,276 (573,911) (206,386) - 29,749
	$ 35,543	29,728

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Lien Hwa Industrial Holdings Corporation Notes to the Parent Company Only Financial Statements

2. Deferred income tax assets and liabilities

(1) Recognized deferred income tax assets and liabilities

The changes in the deferred income tax assets and liabilities in 2023 and 2022 are as follows:

Unrealized exchange gain $ 20 212	Loss carryforwards 4 4	Total 24 216
$ 232	8	240 3 21 24
$ - 20	3 1
$ 20	4

3. Authorization of income tax

The income tax returns of the Company’s profit-seeking business have been audited by the tax authorities up to 2021.

(13) Capital and other equity

1. Issuing of common shares

The total authorized capital of the Company were NT$20,000,000 thousand respectively at NT$10 par value per share, divided into 2,000,000 thousand shares respectively, as of December 31, 2023 and 2022. The total authorized capital stated above were common shares and the shares issued were 1,583,739 thousand and 1,480,130 thousand shares, respectively.

The outstanding stock of the Company in 2023 and 2022 is adjusted as follows:

Beginning balance, January 1 Capitalization of retained earnings Ending balance, December 31		(Stated in thousand shares) Common shares 2023 2022 1,480,130 1,409,648 103,609 70,482	(Stated in thousand shares) Common shares 2023 2022 1,480,130 1,409,648 103,609 70,482
		2023
		1,480,130 103,609
		1,583,739	1,480,130

On May 31, 2023 and June 23, 2022, the company distributed the stock dividends to shareholders from undistributed earnings, NT$1,036,091 thousand and NT$704,824 thousand, respectively, per the resolution of the shareholders’ meeting. The capital increase project took effective on July 6, 2023 and August 3, 2022 upon approval of the Financial Supervisory Commission (FSC). The record dates for said capital

~36~

Lien Hwa Industrial Holdings Corporation Notes to the Parent Company Only Financial Statements

increase are August 1, 2023 and September 5, 2022, respectively. The related statutory procedures were already completed.

2. Capital surplus

The balance of the Company’s capital surplus is as follows:

procedures were already completed. . Capital surplus The balance of the Company’s capital surplus is as follows:	procedures were already completed. . Capital surplus The balance of the Company’s capital surplus is as follows:
December 31, 2023 Stock premium $ 289,318 Treasury stock trading 91,791 Difference between consideration and carrying amount of subsidiaries acquired or disposed 899 Changes in the net equity of the affiliated company and joint venture are recognized in accordance with the equity method. 442,876 Changes in ownership interests in subsidiaries 337,359 Others 1,078 $ 1,163,321		December 31, 2022 289,318 84,035 899 472,404 253,687 698
	$ 1,163,321	1,101,041

Pursuant to the Company Act, the capital surplus shall be first used to offset losses, then new shares or cash may be allocated based on realized capital surplus subject to shareholding ratio. The term realized capital surplus mentioned above includes the shares issued at premium excessing the par value and the gains in the form of gifts. According to the Regulations Governing the Offering and Issuance of Securities by the Issuer, the capital surplus that can be capitalized annually shall not exceed 10% of the total paid-in capital.

3. Retained earnings

Pursuant to the Company's Articles of Incorporation, if the Company has annual earnings, it shall first pay taxes, make up any losses from past years and then appropriate 10% as legal reserves, unless the legal reserve reaches the amount of the Company’s paid-in capital; if necessary, make provision of special reserves according to the laws and the needs of company operation. The residual earnings shall be added to undistributed earnings at the beginning. The Board of Directors shall draft a motion for the distribution of the residual earnings and submit to the shareholders' meeting for distribution.

The Company is now at the stable growth stage and most of the earnings are from the investees recognized under the equity method. For the sustainable operation and long-term development of the company, the Company shall appropriate 10% of the earnings concluded at year-end as legal reserve and appropriate or reverse the special

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Lien Hwa Industrial Holdings Corporation Notes to the Parent Company Only Financial Statements

reserve according to the laws and regulations besides offsetting the accumulated losses and paying all taxes. When distributing the remaining earnings with the accumulated earnings undistributed in the previous year in the form of new shares, the Board of Directors shall propose a motion and submit it to the shareholders’ meeting for approval before distribution. In accordance with Article 240 Paragraph 5 of the Company Act, if the aforementioned earnings are distributed in the form of cash, approval for such distribution should be passed by at least half of the Directors in attendance in a Board meeting attended by no less than two-thirds of all Board members. The results should then be reported during a shareholders' meeting.

The directors' meeting shall consider the financial structure of the Company, future funding demand and profit-seeking conditions to plan the ratio of the earning distribution and shareholder’s cash dividends and the cash dividends shall not be less than 10% of the total dividends.

(1) Legal reserve

When the Company suffers no loss, new shares or cash may be allocated from the legal reserve upon resolution of the shareholders’ meeting, provided that the new shares or cash allocated shall be no more than 25% of the paid-in capital

(2) Special reserve

When first applying the IFRS approved by the FSC, the Company chose to adopt the exemption in IFRS 1 “First-time Adoption of International Financial Reporting Standards”. The unrealized revaluation increment under the shareholder’s equity was stated following the rule of using the fair value on the conversion date as the recognized cost to increase retained earnings. Pursuant to the FSC’s requirements, a same amount of special reserves should be stated. When relative assets were used, disposed or reclassified, the original rate to state the special reserves could be used to reverse the allocation of earnings. The special reserves balances on December 31 in 2023 and 2022 were both NT$141,843 thousand.

According to the FSC’s requirements, when the Company distributes the distributable earnings, for the deduction net amount of other shareholders’ equity stated in the current year and the difference of special reserves balance stated above, the special reserves shall be stated from current profit or loss and the undistributed earnings in the previous period. For the deduction amount of other shareholders’ equity in the previous period, special reserves shall be stated from undistributed earnings in the previous period and shall not be distributed. If the deduction amount of other shareholders’ equity reverses, the earnings of the

~38~

Lien Hwa Industrial Holdings Corporation Notes to the Parent Company Only Financial Statements

reversing part can be distributed.

(3) Distribution of earnings

The Company distributed the cash dividend from 2022 earnings per the resolution of the Board meeting on March 13, 2023. Meanwhile, the other distributions from earnings in 2022 were resolved by the general annual meeting on May 31, 2023, and the distribution of earnings 2021 was also resolved by the general annual meeting on June 23, 2022 as follows:

Dividend distributed to common stock shareholders: Cash Stock Total	2022 Share distribution rate (NT$) Amount $ 1.30 $ 1,924,170 0.70 1,036,091 $ 2,960,261	2022 Share distribution rate (NT$) Amount $ 1.30 $ 1,924,170 0.70 1,036,091 $ 2,960,261	2021 Share distribution rate (NT$) Amount 1.80 2,537,366 0.50 704,824 3,242,190
			Share distribution rate (NT$)
			1.80 0.50
		$ 2,960,261

The proposal for the distribution in 2023 was drafted in the meeting of the board of directors on March 8, 2024. The dividend amount distributed to the shareholders is as follows. Other than the cash dividend, other items on the earning distribution form need to be recognized by the shareholders:

Dividend distributed to common stock shareholders: Cash Stock Total	2023 Share distribution rate (NT$) Amount $ 1.30 2,058,861 0.80 1,266,992 $ 3,325,853	2023 Share distribution rate (NT$) Amount $ 1.30 2,058,861 0.80 1,266,992 $ 3,325,853
		$ 3,325,853

~39~

Lien Hwa Industrial Holdings Corporation Notes to the Parent Company Only Financial Statements

4. Treasury stocks

The list of stocks of the Company held by the subsidiaries on December 31, 2023 and 2022 is as follows:

Ledger account Financial assets measured at fair values through other comprehensive profit or loss- non-current	December 31, 2023 Number of shares (thousand shares) Cost market price $ 6,383 136,868 425,776	December 31, 2023 Number of shares (thousand shares) Cost market price $ 6,383 136,868 425,776	December 31, 2023 Number of shares (thousand shares) Cost market price $ 6,383 136,868 425,776	December 31, Number of shares (thousand shares) Cost 5,966 136,868	December 31,	December 31,	2022 market price 298,889
	Number of shares (thousand shares)	Cost				Cost 136,868
	$ 6,383	136,868	425,776	5,966

Pursuant to the Securities and Exchange Act, the treasury stocks held by the subsidiaries cannot be pledged. And before the transfer, the shareholder’s right is not permitted.

5. Other equity (net amount after tax)

Balance, January 1, 2023 Exchange difference gathered for the calculation of net assets of foreign operations Share of the exchange difference of subsidiaries and affiliated companies under the equity method Unrealized profit or loss of the financial assets measured at fair values through other comprehensive profit or loss Disposal of equity instrument measured at fair value through other comprehensive income Shareholding in unrealized profit or loss of the financial assets measured at fair values through other comprehensive profit or loss of the subsidiaries, affiliated companies under the equity method Affiliated companies disposal of equity instrument measured at fair value through other comprehensive income Balance, December 31, 2023	Exchange difference in the financial statements of foreign operations $ 26,492 (133,456) (80,507) - - - -	Unrealized profit or loss of the financial assets measured at fair values through other comprehensive profit or loss		Total
		7,435,280 - - 4,492,550 (21,087) 1,715,402 (2,077)		7,461,772 (133,456) (80,507) 4,492,550 (21,087) 1,715,402 (2,077)
	$ (187,471)	13,620,068		13,432,597

~40~

Lien Hwa Industrial Holdings Corporation

Notes to the Parent Company Only Financial Statements

Exchange difference in the financial statements of foreign operations Balance, January 1, 2022 $ (335,374) Exchange difference gathered for the calculation of net assets of foreign operations 116,845 Share of the exchange difference of subsidiaries and affiliated companies under the equity method 245,021 Unrealized profit or loss of the financial assets measured at fair values through other comprehensive profit or loss - Disposal of equity instrument measured at fair value through other comprehensive income - Shareholding in unrealized profit or loss of the financial assets measured at fair values through other comprehensive profit or loss of the subsidiaries, affiliated companies under the equity method - Affiliated companies disposal of equity instrument measured at fair value through other comprehensive income - Balance, December 31, 2022 $ 26,492	Exchange difference in the financial statements of foreign operations		Unrealized profit or loss of the financial assets measured at fair values through other comprehensiv e profit or loss 11,495,381 - - (3,221,976) (9,448) (774,517) (54,160)	Total 11,160,007 116,845 245,021 (3,221,976) (9,448) (774,517) (54,160)
			7,435,280	7,461,772

(14) EPS

1. Basic earnings per share

Basic earnings per share of the Company in 2023 and 2022 was calculated based

on the net profit attributed to common stock shareholders of the Company and

weighted average outstanding shares of common stocks. The calculation is as follows:

(1) Net profit attributed to common stock shareholders of the Company

2023 2022 Net income attributable to the Company’s common $ 4,158,206 3,871,653 stock shareholders:

~41~

Lien Hwa Industrial Holdings Corporation Notes to the Parent Company Only Financial Statements

(2) Weighted average outstanding shares of common stocks (thousand shares)

Common stocks issued on January 1 Effect of the treasury stock Effect of the stock dividend Weighted average outstanding shares of common stocks on December 31 Basic earnings per share (NTD)	2023 1,480,130 (6,383) 103,609	2022 1,480,130 (6,383) 103,609
	1,577,356	1,577,356
	$ 2.64	2.45

2. Diluted earnings per share

Diluted earnings per share in 2023 and 2022 was calculated based on the net profit attributed to common stock shareholders of the Company and weighted average outstanding shares of common stocks with adjusted diluted effect of all potential common stocks. The calculation is as follows:

(1) Net profit attributed to common stock shareholders of the Company (diluted)

2023 2022 Net profit attributed to common stock shareholders of the Company (diluted) $ 4,158,206 3,871,653 Weighted average outstanding shares of common stocks (diluted) (thousand shares) 2023 2022 Weighted average outstanding shares of common stocks (basic) 1,577,356 1,577,356 Effect of employee stock compensation 77 90 Balance of weighted average outstanding common shares on December 31 (diluted) 1,577,433 1,577,446 Diluted earnings per share (NTD) $ 2.64 2.45	2023	2022 3,871,653
	$ 4,158,206
	1,577,433	1,577,446
	$ 2.64	2.45

(2) Weighted average outstanding shares of common stocks (diluted) (thousand shares)
(15) Revenue from contracts with customers

1. Income details

Main area and market: Taiwan Others Main product: Investment revenue	2023 Other departments
	$ 530,396 1,526,062
	$ 2,056,458
	$ 2,056,458

~42~

Lien Hwa Industrial Holdings Corporation

Notes to the Parent Company Only Financial Statements

Main area and market: Taiwan Others Main product: Investment revenue	2022
	Other departments
	$ 678,196 1,032,264
	$ 1,710,460
	$ 1,710,460

(16) Remunerations to Directors and employees

According to the Articles of Incorporation, annual profits concluded by the Company shall be subject to employee remuneration of no less than 0.1%. In addition, directors’ remuneration may be provided up to 1% of the annual profit. However, profits must first be taken to offset against cumulative losses if any. Employees’ remuneration, as mentioned above, can be paid in shares or cash to employees of affiliated companies that satisfy certain criteria.

The amounts of employee remuneration in 2023 and 2022 were estimated at NT$4,207 thousand and NT$3,915 thousand, respectively. The amounts of director’s remuneration were NTD$9,420 thousand and NT$8,000 thousand, respectively in 2023 and 2022. These estimates were made by applying the Company's before-tax profits with the deduction of the remunerations to employees and directors. Besides, the appropriate percentages for the remuneration to employees and directors were referenced and past experience was referred for the estimation. The operating cost and expense in 2023 and 2022 were stated. All relevant information is available on the Market Observation Post System.

The above amounts of remuneration to employees and Directors were consistent with the amounts reported in the Company’s 2023 and 2022 standalone financial report.

(17) Non-operating revenue and expense

1. Interest income

The Company’s interest income as of 2023 and 2022 is as follows:

Interest income from bank deposits Other interest income	2023	2022 191 669 860
	$ 2,646 153
	$ 2,799

~43~

Lien Hwa Industrial Holdings Corporation Notes to the Parent Company Only Financial Statements

2. Other revenue

The Company’s other revenues as of 2023 and 2022 were as follow:

Dividend income	2023 $ 403,701	2022 549,437

3. Other profit and loss

The Company’s other profit and loss in 2023 and 2022 were as follow:

Gain on foreign exchange Other revenue Other expense	2023 $ (18) 7,581 (12,016)	2022 (3) 8,768 (8,282)
	$ (4,453)	483

4. Financial cost

The Company’s financial cost in 2023 and 2022 were as follow:

Interest expense	2023 $ 119,383	2022 81,313

(18) Financial instruments

1. Credit risk

(1) Credit risk exposure

As of December 31, 2023 and 2022, the maximum credit risk exposure amount due to the financial loss caused by undelivered obligation of the counterparty or financial guarantees provided by the Company was mainly from:

‧ The book value of financial assets recognized in the balance sheet; and
‧ The financial guarantee provided by the Company was USD17,500 thousand and NT$3,450,000 thousand, as of December 31, 2023; USD18,500 thousand and NT$4,650,000 thousand, as of December 31, 2022.
(2) Concentration of credit risk

The Company’s major potential credit risk was from cash and cash equivalents. The Company’s cash is deposited in different financial institutions, and thus there is no significant concentration of credit risk of cash and cash equivalents.

2. Liquidity risk

The contract maturities of financial liabilities are illustrated in the table below, including the estimated interest but not the impact of net amount agreed.

~44~

Lien Hwa Industrial Holdings Corporation

Notes to the Parent Company Only Financial Statements

Book value	Contractu al cash flows	Within 6 months 100,781 782,729 13,164 84,897 16,205	6-12 months	1-2years	2-5years	Over 5 years
$ 199,992 4,050,000 1,600,000 84,897 2,496,866	201,522 4,103,353 1,618,155 84,897 2,609,699		100,741 2,511,649 1,604,991 - 16,384	- 808,975 - - 32,500	- - - - 2,544,610	- - - - -
$ 8,431,755	8,617,626	997,776	4,233,765	841,475	2,544,610	-
$ 3,050,000 1,950,000 75,991 2,495,939	3,086,200 1,969,318 75,991 2,642,199	424,805 13,552 75,991 16,116	2,507,115 1,955,766 - 16,384	2,602 - - 32,589	151,678 - - 2,577,110	- - - -
$ 7,571,930	7,773,708	530,464	4,479,265	35,191	2,728,788	-

The company does not expect the maturity analysis of cash flows will be significantly pre-matured or the actual amount will be significantly different. 3. Exchange rate risk

(1) Exchange rate risk exposure

As of December 31, 2023 and 2022, the company has no financial assets and liabilities exposed to significant foreign currency exchange rate risk.

(2) Sensitivity analysis

Please refer to Exchange rate risk.

4. Interest rate analysis

Please refer to the note regarding liquidity risk management for the interest rate risk exposure of the Company’s financial assets and financial liabilities.

The following sensitivity analyzes are based on the interest rate risk exposure of the derivative and non-derivative instruments on the reporting date. The analysis of

~45~

Lien Hwa Industrial Holdings Corporation Notes to the Parent Company Only Financial Statements

floating rate liabilities is by assuming the outstanding liability amount on the reporting date stays outstanding the entire year. The rate of change used in the Company’s internal report to the management was the interest rate with an increase or decrease of 0.5%. In addition, the interest rate is assessed within the reasonable and possible range of change by the management.

If interest rate is increased or decreased by 0.5%, with all other variables stayed unchanged, the Company’s net profit would decrease by NT$8,000 thousand in 2023 and increase by NT$10,200 thousand in 2022 due to the change in interest rate made by the Company.

5. Other pricing risk

The impact of the changes in equity price on the reporting date (the analysis of two terms is completed by using the same basis, and assuming all other variables held constant) on the comprehensive profit and loss is as follows:

Stock price on the reporting date	2023 Other comprehensive profit or loss after tax Profit or loss after tax $ 325,429 - (325,429) -	2022
	Other comprehensive profit or loss after tax $ 325,429 (325,429)	Other comprehensive profit or loss after tax 236,202 (236,202)	Profit or loss after tax
Increased by 3% Decreased by 3%			- -

6. Information about fair value

1. Type and fair value of the financial instrument

Financial assets measured at fair values through other comprehensive profit or loss by the Company is based on repetition and measured at fair value. The book value and fair value of different financial assets and liabilities (including fair value rating information, but financial instruments not measured at fair value but with a book value close to the reasonable amount of fair value and leasing liabilities are not required for the disclosure of fair value according to the regulations) are listed down below:

~46~

Lien Hwa Industrial Holdings Corporation Notes to the Parent Company Only Financial Statements

	December 31, 2023	December 31, 2023	December 31, 2023	Total 10,847,626 62,594
Book value $ 10,847,626 62,594		Fair value
	Class I 10,847,626 -	Class II - -	Class III - 62,594
10,910,220	10,847,626	-	62,594	10,910,220
419,027 38,056 2,671	- - -	- - -	- - -	- - -
459,754	-	-	-	-
$ 11,369,974	10,847,626	-	62,594	10,910,220
	- - - - -	- - - - -	- - - - -	- - - - -
$ 8,431,755	-	-	-	-
	December 31, 2022			Total 7,873,416 83,060
Book value $ 7,873,416 83,060		Fairvalue
	Class I 7,873,416 -	Class II - -	Class III - 83,060
7,956,476	7,873,416	-	83,060	7,956,476
36,589 1,526 320 2,671	- - -	- - -	- - -	- - -
41,106	-	-	-	-
$ 7,997,582	7,873,416	-	83,060	7,956,476
	- - - -	- - - -	- - - -	- - - -
$ 7,571,930	-	-	-	-

~47~

Lien Hwa Industrial Holdings Corporation Notes to the Parent Company Only Financial Statements

(2) Evaluation technology of the fair value for the financial instrument measured at fair value

Non-derivative instruments

If a financial instrument has a quoted price in the active market, the quoted price will be the fair value. The market price announced by the Taiwan Stock Exchange Corporation is the basis for the fair value of the listed companies’ equity instrument.

If the open quotation of the financial instrument can be timely and frequently acquired from the exchanges, brokers, underwriters, industrial unions, pricing service institutions or competent authorities and the price represents the actual and fair market transaction which occurs frequently, then the financial instrument has a open quotation of the active market. If the conditions mentioned above are not fulfilled, the market is not viewed as a active one. Generally, great bid-ask spread, significant increase in bid-ask spread or less trading volume are indexes of inactive market.

If the financial instrument possessed by the Company is in the active market, its fair value is listed by category and attribute below:

The fair value of financial assets and liabilities and listed company stocks with standard terms/conditions and traded in the active market shall be decided subject to the market quotation.

Except for the financial instrument in the active market stated above, the fair value of other financial instruments is determined in accordance with the generally accepted pricing models based on the cash flow discount analysis.

If the financial instrument possessed by the Company is in the inactive market, its fair value is listed by category and attribute below:

Equity instrument with no open quotation: the fair value is measured using the cash flow discount model. The main assumption is to apply the expected cash flow estimated by the investee to reflect the time value of money and the risk and rate of return on investment and measure with the discount. When adopting the market approach to measure the fair value, the main assumption uses the quotation of the listed company to calculate the P/S ratio (sales multiple) and applies it on the measurement. The discount effect resulting from the lack of market liquidity of the equity security is considered and the estimated number has been adjusted.

(3) Transfer between Class I and Class II

There was no transfer of financial assets from Class II to Class I in 2023 and

~48~

Lien Hwa Industrial Holdings Corporation Notes to the Parent Company Only Financial Statements

2022.

(4) Details of change in Class III

January 1, 2023 Total profit or loss Recognized in other comprehensive income Refunds from decapitalization December 31, 2023 January 1, 2022 Total profit or loss Recognized in other comprehensive income Purchase Refunds from decapitalization December 31, 2022	Measuring at fair values through other comprehensive profit or loss Equity instrument with no open quotation $ 83,060 (16,957) (3,509) $ 62,594 $ 467,886 (31,863) (15,141) (337,822) $ 83,060

The above total profits or losses are stated in “unrealized valuation gain (loss) of financial assets measured at fair value through other comprehensive profit or loss”. Items related to the assets possessed as of December 31, 2023 and 2022 were as follow:

Total profit or loss Recognized in other comprehensive profit and loss (stated in “unrealized valuation gain (loss) of financial assets measured at fair value through other comprehensive profit or loss”)	2023 $ (16,957)	2022 (31,863)

(5) Quantitative data used on measuring the fair value of the unobservable major input (Class III)

The Company’s item that is measured at fair value and classified as Class III includes financial assets measured at fair value through other comprehensive profit or loss.

~49~

Lien Hwa Industrial Holdings Corporation Notes to the Parent Company Only Financial Statements

Most of the fair value of the Company has only one unobservable major input. Only the equity instrument investment that is not in an active market has multiple unobservable major inputs. The unobservable major inputs of the equity instrument investment that is not in an active market are separated from one another. They are not relevant to each other.

The quantitative data of the unobservable major input are as follow:

Item Financial assets measured at fair values through other comprehensive profit or loss- equity instrument investment that is not in an active market	Evaluation technology Net asset value method	Unobservable major input Relationship between the unobservable major input and the fairvalue ‧ Non-controlling discount (22.06% and 21.63% on December 31, 2023 and 2022) ‧ The higher the non-controlling discount is, the lower the fair value is.	Relationship between the unobservable major input and the fairvalue

(6) Fair value measurement of Class III. Fair value is used for the sensitivity analysis of reasonably possible alternative.

The fair value measurement of the Company’s financial instrument is reasonable. If different valuation model or valuation parameter is used, it might result in different valuation results. For the financial instrument classified as Class III, if the valuation parameter has changed, its effect on the current profit and loss or other comprehensive profit or loss is listed as follows:

~50~

Lien Hwa Industrial Holdings Corporation Notes to the Parent Company Only Financial Statements

Increase or decrease	Change in fair value reflected on other comprehensive profit or loss Advantageo us change Disadvanta geous change $ 226 (226)	Change in fair value reflected on other comprehensive profit or loss Advantageo us change Disadvanta geous change $ 226 (226)
0.5% 0.5%
	$ 409	(409)

The advantageous and disadvantageous change of the Company is the change in fair value. The fair value is based on unobservable input parameters of different levels and calculated using the evaluation technology. The fair value of the financial instrument might be affected by more than 1 input value. The above table only reflects the effect resulting from a single input value change. The relevance between and variability in the input values are not taken into account.

(19) Financial risk management

1. Overview

The Company is exposed to the following risks due to the use of the financial instruments:

(1) Credit risk

(2) Liquidity risk

(3) Market risk

The Company’s risk exposure information and the Company’s measurement and risk management objectives, policies, and procedures are expressed in this Note. Please refer to the notes to the standalone financial statements for further quantitative disclosure.

~51~

Lien Hwa Industrial Holdings Corporation Notes to the Parent Company Only Financial Statements

2. Risk management structure

The board of directors is fully responsible for the establishment and supervision of the Company’s risk management structure. The board of directors has authorized a responsible department as appropriate. The department is responsible for developing and controlling the risk management policies of the Company. Besides, it is required to report its operation to the board of directors regularly.

Internal audit staff will assist the Company’s board of directors to play the supervisory role. These personnel conduct regular and extraordinary review for the risk management control mechanism and procedure. The review result will be reported to the board of directors.

3. Credit risk

Credit risk is the risk of financial losses faced by the company when the counterparty of financial instruments trade is unable to meet its contractual obligations. It is mainly from the Company’s securities investments.

(1) Investment

The credit risk of bank deposits and other financial instruments is measured and monitored by the Finance Department of the Company. The Company’s trading counterparty and performing party are reputable banks, investing financial institutions and corporate organizations with no significant performance concerns. Therefore, there is no significant credit risk.

(2) Guarantee

Pursuant to the Company’s regulations, the subject to whom the Company provides financial guarantees to shall be meet the criteria in the “Guidelines for Endorsements and Guarantees”. The subsidiaries receiving the Company’s endorsement and guarantee as of December 31, 2023 are detailed in Note 13.

4. Liquidity risk

Liquidity risk is the risk that the company unable to pay cash or financial asset to settle the financial liability and unable to perform its obligations. The Company managed the liquidity in a manner ensuring that the Company has sufficient working fund to repay matured liabilities under the general and critical circumstances, so as to avoid unacceptable loss or impairment on the Company's goodwill.

The Company ensures that it has sufficient cash to meet the need for expected operating expenditure for 60 days, including performance of financial obligation, but excluding the potential effect which it is impossible to expect reasonably under extreme circumstances such as natural disaster. Besides, the unused loan amounts of

~52~

Lien Hwa Industrial Holdings Corporation Notes to the Parent Company Only Financial Statements

the Company as of December 31, 2023 and 2022 were NT$7,490,575 thousand and NT$9,390,650 thousand respectively.

5. Market risk

Market risk is the risk that the market price change, such as exchange rate, interest rate and equity instrument price change, will affect the profit or value of the financial instrument possessed by the Company. The objective of market risk management is to control the market risk exposure within the affordable range and to optimize return on investment.

(1) Exchange rate risk

The Company is exposed to exchange rate risk resulting from the sale, procurement and load transactions measured with a currency other than the functional currency of the Company. The Company uses New Taiwan Dollar as the main functional currency. These transactions are denominated in major currencies of New Taiwan Dollar, Hong Kong Dollar and US Dollar.

(2) Interest rate risk

The rate risk of the Company comes from the floating-rate of the long-term and short-term loans. The change of rate will result in changes in the effective rate of long-term and short-term loans. Therefore, the future cash flow will also change. Relative interest rate analysis is detailed in note 6(18).

(20) Capital management

The policy of the board of directors maintains the basis of unimpaired capital. It helps maintain the confidence of the investor, creditor and market. It also supports future operating development. Capital includes stock, additional paid-in capital, retained earnings, and other equity of the Company. The board of directors controls the return on capital. It also controls the dividend quality of common shares.

The debt to equity ratio on the reporting date is as follows:

December 31, 2023 $ 8,540,349 (419,027)	December 31, 2023 $ 8,540,349 (419,027)	December 31, 2022 7,673,993 (36,589)
$ 8,121,322		7,637,404
$ 45,605,309		37,320,547
	17.81%	20.46%

The company’s capital management method has not been changed as of December 31, 2023.

~53~

Lien Hwa Industrial Holdings Corporation Notes to the Parent Company Only Financial Statements

(21) Non cash transactions investing/financing activities

Long-term loan Short-term loans Short-term notes payable Bonds payable Total liabilities from financing activities Long-term loan Short-term loans Short-term notes payable Bonds payable Total liabilities from financing activities	January 1, 2023 Cash flow $ 150,000 650,000 4,850,000 - - 199,992 2,495,939 -	Non-cash changes other changes December 31, 2023 - 800,000 - 4,850,000 - 199,992 927 2,496,866
	$ 7,495,939 849,992	927 8,346,858
	January 1, 2022 Cash flow $ 1,100,000 (950,000) 4,600,000 250,000 799,876 (799,876) - 2,500,000	Non-cash changes other changes December 31, 2022 - 150,000 - 4,850,000 - - (4,061) 2,495,939
	$ 6,499,876 1,000,124	(4,061) 7,495,939

~54~

Lien Hwa Industrial Holdings Corporation Notes to the Parent Company Only Financial Statements

VII. Transactions with related party

(1) Names of related parties and their relationship with the company

Related parties that have performed transactions with the Company during the period of the parent company only financial statement include: Name of related party Relationship with the Company

Hua Cheng Investment Co., Ltd. Subsidiary of the Company Lien Rui Investment Corp. Subsidiary of the Company Jian Foods Incorporation Subsidiary of the Company Oggi Restaurant Group Co., Ltd. Subsidiary of the Company Camel Ring International Company Subsidiary of the Company Fortune Dragon Holding Inc. Subsidiary of the Company Sun Lead International Limited Subsidiary of the Company Pacific Gateway Holdings Inc. Subsidiary of the Company Hifood Co., Ltd. Subsidiary of the Company Yantai Taihwa Food Industrial Co., Ltd. Subsidiary of the Company Hifood(Shanghai) Co., Ltd. Subsidiary of the Company Lien Hwa Milling Corporation Subsidiary of the Company Lien Hwa Property Development Subsidiary of the Company Corporation Lien Hwa Industrial Corp. Subsidiary of the Company MiTAC Inc. Subsidiary of the Company[Mix System Holdings Ltd. ] Subsidiary of the Company[Ho Li Investment Co., Ltd. ] Subsidiary of the Company[MiTAC Hikari Corp. ] Subsidiary of the Company[Mitac Investment China Co., Ltd. ] Subsidiary of the Company[Mitac (Shanghai) Business Management ] Subsidiary of the Company Consulting Co., Ltd. MiTAC Information Technology Corp. Subsidiary of the Company[MiTAC Communication Co., Ltd. ] Subsidiary of the Company[Claridy Solutions, Inc. ] Subsidiary of the Company[Samoa Mitac Information Holding Ltd. ] Subsidiary of the Company[Claridy Solutions (Wuxi), Inc. ] Subsidiary of the Company[Claridy Solutions (Nanjing), Inc. ] Subsidiary of the Company[General Resources Co. ] Subsidiary of the Company[General Resources Company (HK) ] Subsidiary of the Company Limited[General Resources Vietnam Company ] Subsidiary of the Company Limited[Mitac Information Technology ]

Subsidiary of the Company Subsidiary of the Company

~55~

Lien Hwa Industrial Holdings Corporation Notes to the Parent Company Only Financial Statements

(Singapore) Pte. Ltd.[Getac Technology Corporation ] Other related party of the Company[Synnex Technology International ] Other related party of the Company Corporation[MiTAC Holdings Corporation ] Other related party of the Company[MiTAC Advance Technology Corp. ] Subsidiary of the Company[Asia Hydrogen Energy Corporation ] Subsidiary of the Company (Note)

Note ： It has been a subsidiary of the company since November 30, 2023.

(2) Material transactions with related parties
Receivables accounts-related parties

The Company's payable accounts-related parties are stated as follows:

Title Type	December 31, 2023	December 31, 2022 -
Other receivables Subsidiary	$ 37,500

The above other receivables are cash dividends.

2. Payable accounts-related parties

The Company's payable accounts-related parties are stated as follows:

Title Type	December 31, 2023 December 31, 2022 $ 1,944 2,412
Other payable Subsidiary

3. Other

The Company sold factory land to Lienhwa Industrial Gases Co., Ltd. in 1985 and 1998. The sales revenue was NT$71,934 thousand. Since the company is not sold, the company stated the deferred credits as company profits.

The company's dividend income from other related parties was NT$373,345 thousand and NT$515,395 thousand in 2023 and 2022.

The company purchased and increased cash capital in Asia Hydrogen Energy Corporation in 2023. The total equity investment amount was NT$303,918 thousand.

The company increased its investment in Lien Rui Investment Corp. and Hua Cheng Investment Co., Ltd. by NT$100,000 thousand and NT$351,116 thousand in 2022.

4. Endorsement/guarantee

The Company's subsidiary Lien Hwa Property Development Corporation provided property guarantees for the Company's financing loans with an endorsement guarantee amount of NT$ 4,024,390 thousand , the actual moving amount NT$ 2,024,390 thousand on December 31, 2023 and NT$ 2,374,390 thousand on December 31, 2022.

The company provided endorsement guarantees to its subsidiaries Pacific

~56~

Lien Hwa Industrial Holdings Corporation Notes to the Parent Company Only Financial Statements

Gateway Holdings Inc., Fortune Dragon Holding Inc., Lien Hwa Milling

Corporation and Lien Hwa Property Development Corporation, and the balances as of December 31, 2023 were respectively NT$184,230 thousand, NT$353,108 thousand, NT$3,350,000 thousand and NT$100,000 thousand.

(3) Key management personnel transactions

Remuneration to key management personnel includes the following:

Short-term employee benefits Post-employment benefits Other long-term benefits	2023	2022 20,255 290 65
	$ 22,621 314 100
	$ 23,035	20,610

VIII. Pledged Assets

Pledged Assets	Pledged Assets
The book value of the Company’s pledged assets is as follows: Assets name Charged and pledged guarantees December 31, 2023 Guarantee deposits paid $ 2,671		December 31, 2022 2,671
Guarantee deposits paid

IX. Significant contingent liabilities and unrecognized contractual commitments: None.

X. Losses due to major disasters: None.

XI. Materiality after the period: None.

XII. Others

(I) Classification of employee benefits, depreciation, depletion and amortization expenses by

function is summarized as follows:

By function By nature	2023	2023	2023	2022	2022	2022
	Classified as operating cost	Classified as operating expense	Total	Classified as operating cost	Classified as operating expense	Total
Employee benefit expense Salary expense Labor and health insurance expense Pension expense Remuneration of Directors Other employee welfare expense Depreciation expense Amortization expense	－－ `－` `－` －－－	28,565 1,414 529 11,482 820 38 －	28,565 1,414 529 11,482 820 38 －	－－ `－` `－` －－－	25,197 1,613 564 10,156 505 －－	25,197 1,613 564 10,156 505 －－

~57~

Lien Hwa Industrial Holdings Corporation Notes to the Parent Company Only Financial Statements

The information about employees and salary of the Company for the years ended December 31, 2023 and 2022 are as bellow:

ecember 31, 2023 and 2022 are as bellow:
Employees Non-employee directors Average employee benefits (Note1) Average salary Average salary adjustment Remuneration of Supervisor	2023 16	2022 16 7 3,098 2,800 `－`
	6
	3,135
	2,859
	2.11%
	`－`

Note1 ： Not included Remuneration of Directors.

The company's salary and remuneration policy (including director, manager and staff) are as follows:

(1) Director

In accordance with recommendations rendered by the Remuneration Committee of Lien Hwa Industrial Holdings Corp (thereinafter LHIHC), merit reward and travel allowance for members of the Board of Directors have been approved.

The remuneration amount is in compliance with Article 28 of LHIHC bylaws and shall not exceed one percent of LHIHC’s annual net income when applicable.

The recommendation is deliberated with consideration of multiple indexes, including but not limited to industry-wide remuneration data, time invested and complexity of esponsibilities.

The recommendation is deliberated by the remuneration committee and

reviewed by members of the Board before being presented to the annual general meeting. (2) Manager

LHIHC evaluates a manager’s merit with consideration of job complexity, quantity of responsibilities, personal performance achievements, internal fairness ratings, operating performance relevant to the position and industry-wide remuneration data. The recommendation is deliberated by the remuneration committee before being presented in the Board meeting for approval.

The remuneration amount of our managers is in compliance with Article 28 of LHIHC by laws and shall not exceed more than one thousandth of LHIHC’s annual net income when applicable.

(3) Staff

LHIHC evaluates a staff’s merit with consideration of job complexity, quantity of responsibilities, personal performance achievements, internal fairness ratings, operating performance relevant to the position and industry-wide remuneration data. The recommendation is deliberated by the Human Resource Department before being presented to the managers of authority for approval.

The remuneration amount of our staff members is in compliance with Article 28 of

~58~

Lien Hwa Industrial Holdings Corporation Notes to the Parent Company Only Financial Statements

LHIHC bylaws and shall not exceed more than one thousandth of LHIHC’s annual net income when applicable.

LHIHC also takes staff compliance record with the Code of Conduct, performance evaluation and bonus distribution rules into consideration when recommending relevant awards.

XIII. Supplementary disclosure

(I) Information on material transactions

According to the Regulations Governing the Preparation of Financial Reports by Securities Issuers, the company should also disclose the information about material transactions in 2023:

Loaning of funds to others:

Unit: NTD thousand

No.	Lender	Borrowing company	Account titles	Related party	Current maximum amount	Ending balance	Drawdown	Interest rate interval	Nature of loaning of funds (Note 1)	Business transaction amount	Reasons of necessary short-term financing	Amount recognized in loss allowance	Collateral	Collateral	Limit of loans to individual borrowers	Limit of total loans
													Name	Value
1 2 2 2 3 3 4 4 4 5 5 6	Lien Hwa Property Development Corporation Fortune Dragon Holding Inc. `〞` `〞` MiTAC Inc. `〞` MiTAC Information Technology Corp. `〞` `〞` General Resources Co., Ltd. `〞` Lien Rui Investment Corp.	Lien Hwa Milling Corporation Yantai Taihwa Food Industrial Co., Ltd. Hifood Co., Ltd. Lien Hwa Industrial Holdings Corporation MiTAC Information Technology Corp. MiTAC Advance Technology Corp. MiTAC Communication Co., Ltd. General Resources Co., Ltd. MiTAC Advance Technology Corp. General Resources (Hong Kong) Co., Ltd. GENERAL RESOURCES VIETNAM COMPANY LIMITED Jian Foods Incorporation	Other receivable `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞`	Yes `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞`	500,000 356,675 43,050 648,500 1,000,000 1,000,000 50,000 130,000 300,000 110,000 25,100 17,700	- 337,755 21,494 - - 1,000,000 - 120,000 300,000 - - 7,700	- 337,755 19,651 - - 1,000,000 - 120,000 - - - -	1.10%~ 1.78% - 1.20%~ 5.56% - 1.80% 1.80%~ 1.90% 0.98%~ 1.90% 1.90%~ 2.00% - 2.25%~ 2.52% 2.52% 1.55%~ 1.69%	2 2 2 2 2 2 2 2 2 2 2 2	- - - - - - - - - - - -	For business turnover `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞`	- - - - - - - - - - - -	`-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-`	- - - - - - - - - - - -	1,052,882 7,616,063 3,046,425 7,616,063 2,817,744 2,817,744 650,882 650,882 650,882 21,816 21,816 47,916	1,052,882 10,662,488 10,662,488 10,662,488 5,635,488 5,635,488 650,882 650,882 650,882 21,816 21,816 47,916

Note 1: 1. A business associate.

Needs for short-term financing.

Note 2: The limit amount of loans to each borrower shall not exceed 10% of the net value of the recent financial statements audited or reviewed by the CPA, and the total limit of loans shall not exceed 20% of that.

Note 3: The limit amount of loans to each borrower and the total limit of loans of Lien Hwa Property Development Corporation shall not exceed 40% of the net value of the recent financial statements audited or reviewed by the CPA.

Note 4: If both the borrower and lender are the foreign company that the parent company owns directly or indirectly with 100% of voting rights, the limit amount for the Fortune Dragon Holding Inc. to loan to each borrower and the limit amount of total loans shall not exceed 100% of the net value of the recent financial statements audited or reviewed by the CPA. If the borrower and lender do not meet said criteria, the amount shall not exceed 40%. Said amount loaned shall not exceed 140% in total.

Note 5: The limit amount of loans of MiTAC Inc.to each borrower shall not exceed 10% of the net value of the recent financial statements audited or reviewed by the CPA, and the total limit of loans shall not exceed 20% of that.

Note 6: MiTAC Information Technology Corp.’s limit for loans to each borrower and all borrowers in aggregate shall not exceed 40% of the latest financial statements audited or reviewed by the CPA

Note 7: Lian-Rui Investment Co., Ltd.’s limit for loans to each borrower and all borrowers in aggregate shall not exceed 40% of the latest financial statements audited or reviewed by the CPA.

Note8: General Resources Co., Ltd’s limit for loans to each borrower and all borrowers in aggregate shall not exceed 40% of the latest financial statements audited or reviewed by the CPA.

~59~

Lien Hwa Industrial Holdings Corporation

Notes to the Parent Company Only Financial Statements

2. Making endorsements/guarantees for others:

Unit: NTD thousand

No.	Endorsing/guara nteeing company	Endorsed/guaranteed company	Endorsed/guaranteed company	Limit amount of endorsement/ guarantee to a single enterprise	Current maximum endorsement/ guarantee balance	Current endorsement/ guarantee - ending	Actual amount drawn down	Endorsement/ guarantee amount secured with property as collateral	Ratio of the cumulative endorsement/ guarantee amount to the net worth in the most recent financial statements	Maximum endorsements/ guarantees	Endorsement / guarantee made by the parent company for its subsidiaries	Endorsements/ guarantees made by the subsidiaries for its parent company	Endorsement/g uarantee made for the operations in Mainland China
		Company name	Relationship (Note 1)
0 0 0 0 1 2 3 3 3	Lien Hwa Industrial Holdings Corporation `〞` `〞` `〞` Lien Hwa Property Development Corporation MiTAC Inc. MiTAC Information Technology Corp. `〞` `〞`	Pacific Gateway Holdings Inc. Fortune Dragon Holding Inc. Lien Hwa Milling Corporation Lien Hwa Property Development Corporation Lien Hwa Industrial Holdings Corporation MiTAC Information Technology Corp. MiTAC Communication Co., Ltd. General Resources Co., Ltd. MiTAC Advance Technology Corp	2 2 2 2 3 1 2 2 2	45,605,309 45,605,309 45,605,309 45,605,309 7,896,616 28,177,441 1,627,205 1,627,205 1,627,205	217,980 372,888 4,250,000 600,000 4,024,390 2,333,925 50,000 450,000 35,225	184,230 353,108 3,350,000 100,000 4,024,390 2,168,925 - 450,000 35,225	- - 1,539,733 79,000 2,024,390 1,034,131 - 290,765 35,225	- - - - 4,024,390 140,190 - - -	0.40% 0.77% 7.35% 0.22% 152.89% 7.70% - % 27.65% 2.16%	45,605,309 45,605,309 45,605,309 45,605,309 7,896,616 28,177,441 1,627,205 1,627,205 1,627,205	Y Y Y Y N N N N N	N N N N Y N N N N	N N N N N N N N N

Note 1: The relationship between the endorsing/guarantying subject and the endorsed/guaranteed subject is classified into 3 categories as follows:

A business associate.
A company that directly and indirectly holds more than 50% of the voting shares.
A company that directly and indirectly holds more than 50% of the voting shares.

Note 2: The total endorsement and guarantee amount made by the Company for others shall not exceed 100% of the net value in the most recent financial statements. The endorsement and guarantee amount made by the Company to a single subsidiary shall not exceed 100% of the net value in the most recent financial statements.

Note 3: The limit of the endorsement and guarantee amount made by Lien Hwa Property Development Corporation to a single company and the total limit of endorsement and guarantee shall not exceed 300% of the net value in the most recent financial statements of Lien Hwa Property Development Corporation audited or reviewed by the CPA.

Note 4: The limit of the endorsement and guarantee amount made by MiTAC Inc.to a single company and the total limit of endorsement and guarantee shall not exceed 100% of the net value in the most recent financial statements of MiTAC Inc. audited or reviewed by the CPA.

Note 5: The limit of the endorsement and guarantee amount made by MiTAC Information Technology Corp. to a single company and the total limit of endorsement and guarantee shall not exceed 100% of the net value in the most recent financial statements of MiTAC Information Technology Corp. audited or reviewed by the CPA.

~60~

Lien Hwa Industrial Holdings Corporation Notes to the Parent Company Only Financial Statements

Marketable securities held at yearend (excluding the equity held by invested subsidiaries, affiliated enterprises and joint ventures): Unit: NTD Thousand/ Thousand shares

Company in possession	Type and name of marketable securities	Relationship with the security issuer	Ledger account	Ending	Ending	Ending	Ending	Remarks
				Number of shares (Number of unit)	Book value	Percentage held	Fair value (Notes 1 and 3)
Lien Hwa Industrial Holdings Corporation `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` Hua Cheng Investment Co., Ltd. `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` Fortune Dragon Holding Inc. `〞` `〞` `〞` `〞` `〞` `〞` Sun Lead International Limited `〞` MiTAC Inc. `〞` `〞` `〞` `〞`	Great Wall Enterprise Co., Ltd. MiTAC Holdings Corp. Synnex Technology International Corp. Pao Long International Co., Ltd. Getac Holdings Corporation Formosa Golf and Country Club Corp. Hsin Yu Energy Development Co., Ltd. Harbinger Venture Capital Corp. Global Investment Holdings Co. Ltd. Shihlien Fine Chemicals Co., Ltd. Lien Hwa Industrial Holdings Corporation Waffer Technology Corp. Shihlien Fine Chemicals Co., Ltd. Harbinger Venture Management Co., Ltd. B Current Impact Investment Taian Insurance Co .,Ltd. China Trade and Development Corp. Harbinger VI Venture Capital Corp. Harbinger VII Venture Capital Corp. B Current Impact Investment Inc. Harbinger VIII Venture Capital Corp. Budworth Investment Limited Asia Global Venture Capital Co., Ltd Harbinger Ruyi Venture Limited Asia Global Venture Capital II Co., Ltd Ever Victory Global Limited. eT Capital, L.P. Acorn Accelerator Fund I, L.P. Kelington Group Berhad Kelington Group Berhad Lien Hwa Industrial Holdings Corporation Ares International Corp. Synnex Technology International Corp. MiTAC Holdings Corp. EasyCard Investment Holding Co., Ltd.	The Company is the juridical person director of the company The chairman of the company is the one of the Company `〞` - The chairman of the Company is the representative of the juridical person director of the company - - The Company is the juridical person chairman of the company The Company is the juridical person director of the company The Company is the juridical person director of the company Parent company - - - - - - - - - - - - - - - - - - - Parent company The Company is the juridical person director of the company The chairman of the company is the one of the Company `〞` -	Financial assets measured at fair values through other comprehensive profit or loss- non-current `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` Financial assets at fair value through profit or loss - noncurrent Financial assets measured at fair values through other comprehensive profit or loss- non-current `〞` `〞` `〞` `〞`	19,013 105,941 59,526 2,365 7,210 2 6,076 7 1,404 24,384 174 2 11,001 863 - 921 50 2,410 5,333 500 15,000 30 446 500 159 72,810 - - 39,635 10,182 6,209 1,000 260,521 101,431 4,184	1,112,249 4,719,669 4,178,734 36,664 800,310 340 - 46 26,916 35,292 11,621 185 15,922 19,788 4,614 25,487 1,243 29,854 84,923 4,296 158,684 2 22,509 11,753 7,372 944,919 97,412 35,568 551,406 52,877 414,155 53,922 18,288,578 4,518,755 200,913	2.12% 8.78% 3.57% 1.57% 1.18% 0.01% 2.44% 3.35% 3.33% 9.38% 0.01% - 4.23% 19.99% 3.13% 0.31% 0.08% 9.96% 9.39% 6.25% 11.57% 3.33% 10.00% 14.29% 3.00% 11.76% 10.55% 7.41% 6.16% - % 0.39% 2.12% 15.62% 8.41% 6.28%	1,112,249 4,719,669 4,178,734 36,664 800,310 340 - 46 26,916 35,292 11,621 185 15,922 19,788 4,614 25,487 1,243 29,854 84,923 4,296 158,684 2 22,509 11,753 7,372 944,919 97,412 35,568 551,406 52,877 414,155 53,922 18,288,578 4,518,755 200,913	Note 2 Note 2 Note 4 Note 5

~61~

Lien Hwa Industrial Holdings Corporation

Notes to the Parent Company Only Financial Statements

Company in possession	Type and name of marketable securities	Relationship with the security issuer	Ledger account	Ending	Ending	Ending	Ending	Remarks
				Number of shares (Number of unit)	Book value	Percentage held	Fair value (Notes 1 and 3)
MiTAC Inc. `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` Mix System Holdings `〞` `〞` `〞` Ho Li Investment Co., Ltd. `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` Shen Tong International Management Consulting Co., Ltd. MiTAC Communication Co., Ltd. Claridy Solutions (Wuxi), Inc. `〞` `〞` MiTAC Advance Technology Corp.	Far Eastern Electronic Toll Collection Co, Ltd. Digital economy limited partnership Harbinger VII Venture Capital Corp. Harbinger III Venture Capital Corp. Harbinger Venture Capital Corp. Lian Jie Er Investment Co. Ltd. Harbinger VIII Venture Capital Corp. ProMOS Technologies Inc. General Motors corporate bond Renaissance Capital I Limited Partnership CTCI Corporation EasyCard Budworth Investment Limited Dyna comware Harbinger Ruyi II Venture Limited Temple of Light Limited MiTAC Inc. MiTAC Information Technology Corp. Harbinger VI Venture Capital Corp. Far Eastern Electronic Toll Collection Co, Ltd. UPC Technology Corp. Synnex Technology International Corp. Getac Holdings Corporation Waffer Technology Corp. CTCI Corporation Mitac (Shanghai) Computer Co., Ltd. Fubon Chi-Hsiang Money Market Fund Suyin Wealth OpenSource Cash 1 Ruyi Life Tiantian Xin TLB1801 Fubon Chi-Hsiang Money Market Fund	The Company is the juridical person director of the company - - The Company is the juridical person director of the company The chairman of the company is the one of the Company - The Company is the juridical person director of the company - - - - The Company is the juridical person director of the company - - - - Parent company Fellow subsidiary of the parent company The chairman of the parent company is its chairman The parent company is the juridical person director of the company The chairman of the parent company is its chairman `〞` Invested company of MiTAC Holdings Corporation under the equity method - - - - - - - -	`〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` Financial assets measured at fair values through other comprehensive profit or loss- non-current `〞` `〞` `〞` `〞` `〞` `〞` `〞` Financial assets measured at fair values through other comprehensive profit or loss- current `〞` `〞` `〞` `〞` Financial assets measured at fair values through other comprehensive profit or loss- non-current Financial assets measured at fair values through profit or loss- current `〞` `〞` `〞` `〞`	27,723 - 5,333 6 19 1,625 10,000 44 500 - 7,593 1,759 91 21 5 153 2,561 - 1,607 5,256 8,467 460 5,358 1 1,917 - 2,490 - - - 29,826	316,463 31,267 84,920 163 130 21,104 105,789 - - 113,235 320,045 115,998 6 1,384 35,683 6,141 177,877 2 17,338 59,969 128,702 32,292 594,738 124 80,802 3,462 40,091 25,746 4,422 4,348 480,300	9.24% 6.29% 9.39% 6.00% 9.50% 16.25% 7.71% 0.10% - % 12.82% 0.95% 2.51% 10.00% 0.97% 16.13% 1.20% 0.63% - % 6.64% 1.75% 0.62% 0.03% 0.88% - % 0.24% 10.00% - % - % - % - % - %	316,463 31,267 84,920 163 130 21,104 105,789 - - 113,235 320,045 115,998 6 1,384 35,683 6,141 177,877 2 17,338 59,969 128,702 32,292 594,738 124 80,802 3,462 40,091 25,746 4,422 4,348 480,300	Note 2

Note 1: For the TWSE/TPEx-listed company with a public market price, the closing price on the last transaction date in the accounting period shall apply.

Note 2: The parent company’s stocks possessed by subsidiaries have been deducted from the book value and these stocks were deemed as treasury stocks.

Note 3: The market price listed by the non-TWSE/TPEx-listed company refers to the equity net value. Some of it is listed in the financial statements of the same period that is prepared by the invested company or audited by the CPA.

Note 4: Among the other things, 23,000 thousand shares were pledged to the bank as the collateral to secure the application of MiTAC Information

~62~

Lien Hwa Industrial Holdings Corporation Notes to the Parent Company Only Financial Statements

Technology Corp. for the facility under the bank’s project.

Note 5: Among the other things, 1,500 thousand shares were pledged to the bank as the collateral to secure the application of MiTAC Information Technology Corp. for the facility under the bank’s project.
The amount of the accumulated purchase or sale of the same securities is over NT$300
million or 20% of the paid-in capital:

==> picture [193 x 10] intentionally omitted <==

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

Unit: NTD Thousand/ Thousand shares
----- End of picture text -----

==> picture [453 x 210] intentionally omitted <==

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

Buying/selling company Type and name of marketable securities Ledger account counterpart Trading [Relationship ] of shares Number Beginning of the period Amount Number of shares Buy Amount (Note) Number of shares Selling price Sell Book cost gain or loss Disposal Number of shares Yearend Amount
Lien Hwa Asia The investment Asia Non-related - - 7,466 299,725 - - - - 7,466 299,725
Industrial Hydrogen under equity Hydrogen parties
Holdings Energy method Energy
Corporation Corporation Corporatio
n and its
original
shareholde
rs Rick
Hsiao.
MiTAC MiTAC The investment Split - - 53,510 664,980 - - - - 53,510 664,980
Information Advance under equity transfer
Technology Technology method and cash
Corp. Corp. capital
increase
MiTAC Inc. Fubon Financial assets - - 45,619 730,000 45,619 730,361 730,000 361 - -
Chi-Hsiang measured at fair
Money values through
Market Fund profit or loss-
current
MiTAC Fubon Financial assets - - 29,826 480,000 - - - - 29,826 480,300
Advance Chi-Hsiang measured at fair
Technology Money values through
Corp. Market Fund profit or loss-
current
----- End of picture text -----

Note1: Including the adjustments for change in the recognized amount.

Note2: On August 18, 2023, the board of directors of MiTAC Information Technology Corp. approved the division of innovative technology business group to MiTAC Advance Technology Corp. were exchanged for 50,000 thousand shares of common stock at NT$10 per share and increased cash capital by 3,510 thousand shares, totaling 53,510 thousand shares. The record date of the division is November 1, 2023.

Purchase amount of real property that exceeds NTD300 million or 20% of the paid-in
capital: None.
Amount for the disposal of real property exceeds NTD300 million or 20% of the paid-in
capital: None.
Amount of the purchase from and the sale to related parties exceeds NTD100 million or

20% of the paid-in capital:

Buyer/Seller	Name of the trading counterpart	Relationshi p	Transaction Details	Transaction Details	Transaction Details	Transaction Details	Abnormal Transaction	Abnormal Transaction	Notes/Trade receivable (Payable)	Notes/Trade receivable (Payable)	Note
			Purchase/ Sale	Amount	% of Total	Payment Terms	Unit Price	Payment Terms E	Ending Balance	% of Total
Lien Hwa Milling Corporation	Chiao Thai Hsing Enterprise C o., Ltd.	Other related party	purchase	747,875	9%	on demand	-	No significant differences	-	- %

~63~

Lien Hwa Industrial Holdings Corporation Notes to the Parent Company Only Financial Statements

Amount receivable from related parties exceeds NTD100 million or 20% of the paid-in capital: None.

Unit: NTD thousand

Stated company of account receivable	Name of the trading counterpart	Relationship	Balance of receivable accounts-rela ted parties	Turnover rate	Overdue accounts-r	receivable elated parties	Subsequent recovered amount of receivable accounts-related parties	Appropriated allowance for bad debt
					Amount	Treatment
Fortune Dragon Holding Inc. MiTAC Inc. MiTAC Information Technology MiTAC Advance Technology Corp.	Yantai Taihwa Food Industrial Co., Ltd. MiTAC Advance Technology Corp. General Resources Co., Ltd. MiTAC Information Technology Corp.	Parent-subsidiary Other related party Parent-subsidiary Parent-subsidiary	337,755 1,001,445 120,000 267,672	- - - -	- - - -		- - - -	- - - -

Engaging in derivative transactions: None.
(2) Information about invested business:

The information about invested business (excluding the invested business in Mainland China) of the company in 2023 is as follows:

Unit: NTD Thousand/ Thousand shares

Name of investment company	Name of invested company	Location	Main business	Original inves	tment amount		Held at yearend		Investee income recognized in the current period	Investment gains and losses recognized in the current period	Remarks
				End of the period	End of last year	Number of shares	Ratio	Book value
Lien Hwa Industrial Holdings Corporation `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞`	UPC Technology Corp. Linde Lienhwa Industrial Gases Co., Ltd. MiTAC Inc. MiTAC Information Technology Corp. Hua Cheng Investment Co., Ltd. Lienhwa United LPG Co., Ltd. Lien Rui Investment Corp. Fortune Dragon Holding Inc. Lien Hwa Milling Corporation Lien Hwa Property Development Corporation Lien Hwa Industrial Co., Ltd. Asia Hydrogen Energy Corporation	Taipei City `〞` `〞` `〞` `〞` `〞` `〞` B.V.I. Taipei City `〞` `〞` Hsinchu	Organic acid, acid anhydride and its derivatives, plastic toughener, etc. Production of liquid nitrogen, nitrogen, hydrogen, acetylene and other industrial gases. General investment Integrated system service, automatic system, applied software design and sale of industrial computer General investment Installation, purchase/sale and technical maintenance of the equipment for propane, butane and the mixture. General investment `〞` Manufacturing and sale of flour Rental and leasing business General investment Manufacture of machinery and equipment for power generation, transmission and distribution, and energy technology service.	3,142,213 400,000 731,636 1,289,599 827,116 62,253 623,500 3,737,817 913,563 2,201,000 1,000 303,918	3,142,213 400,000 731,636 1,289,599 827,116 62,253 623,500 3,737,817 913,563 2,201,000 1,000 -	424,881 1,886 143,480 65,900 106,920 6,848 21,000 120,155 74,999 200,100 100 7,466	32.07% 50.00% 35.89% 38.77% 100.00% 24.04% 100.00% 100.00% 74.999% 100.00% 100.00% 50.927%	9,546,628 8,838,248 10,174,843 661,843 1,515,629 89,304 119,804 7,616,063 1,254,355 2,632,205 1,006 299,725	(282,826) 3,983,951 1,039,594 (208,687) 44,048 31,420 (32,847) 1,526,063 150,322 139,209 5 (18,765)	(90,957) 1,991,976 360,474 (89,450) 43,836 7,555 (32,849) 1,526,063 113,363 139,209 5 (4,193)	Subsidiary Note 1 and 2 Subsidiary Note 3 Subsidiary Note 1 Subsidiary Note 3 Subsidiary Subsidiary Note 3 Subsidiary `〞` Subsidiary Note 4

~64~

Lien Hwa Industrial Holdings Corporation Notes to the Parent Company Only Financial Statements

Name of investment company	Name of invested company	Location	Main business	Original inves	tment amount		Held at yearend		Investee income recognized in the current period	Investment gains and losses recognized in the current period	Remarks
				End of the period	End of last year	Number of shares	Ratio	Book value
Hua Cheng Investment Co., Ltd. `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` Lien Rui Investment Corp. `〞` `〞` `〞` Fortune Dragon Holding Inc. `〞` `〞` `〞` MiTAC Inc. `〞` `〞` `〞` `〞` Mix System Holdings Ltd. Ho Li Investment Co., Ltd. `〞` MiTAC Information Technology Corp.	UPC Technology Corp. MiTAC Inc. MiTAC Information Technology Corp. Jian Foods Incorporation Camel Ring International Company Lien Yung Investment Corp. Tung Da Investment Co., Ltd. Lien Hwa Milling Corporation Asia Hydrogen Energy Corporation Jian Foods Incorporation Oggi Restaurant Group Co., Ltd. Farmdirect Corp. Camel Ring International Company Pacific Gateway Holdings Inc. Boc Lienhwa (B.V.I) Holding Co., Ltd. Hifood Co., Ltd. Sun Lead International Limited Mix System Holdings Ltd. Ho Li Investment Co., Ltd. MiTAC Hikari Corp. MiTAC Information Technology Corp. MiTAC Advance Technology Corp. Mitac Investment China Co. Ltd. Lien Yung Investment Corp. Tung Da Investment Co., Ltd. MiTAC Communication Co., Ltd.	`〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` Hsinchu `〞` `〞` Taoyuan City Taipei City B.V.I. `〞` Cayman Islands B.V.I. `〞` Taipei City `〞` `〞` `〞` B.V.I. Taipei City `〞` `〞`	Organic acid, acid anhydride and its derivatives, plastic toughener, etc. General investment Integrated system service, automatic system, applied software design and sale of industrial computer Wholesaling and retailing business `〞` General investment `〞` Manufacturing and sale of flour Manufacture of machinery and equipment for power generation, transmission and distribution, and energy technology service. Wholesaling and retailing business Restaurant business Wholesaling and retailing business `〞` General investment `〞` `〞` `〞` `〞` `〞` System integration service Integrated system service, automatic system, applied software design and sale of industrial computer Information Software Services, Computer and Peripheral Equipment Manufacturing, Other Electrical Engineering and Electronic Machinery Equipment Manufacturing General investment `〞` `〞` Sale, rental and maintenance of telephone switching systems and data communication products, communication system project contracting	54,933 84,354 140,128 10 10 87,969 72,699 14 40 417,000 35,000 13,500 6,465 1,186,793 1,744 470,630 73,525 268,342 564,035 30,000 604,086 159,084 166,065 87,969 72,691 201,312	54,933 84,354 140,128 10 10 87,969 72,699 14 - 381,000 35,000 13,500 6,465 1,186,793 1,744 470,630 73,525 268,342 564,035 30,000 367,032 - 166,065 87,969 72,691 201,312	4,732 7,807 9,004 - 1 9,217 4,848 1 1 11,789 3,500 600 642 39,461 50 14,150 3 8,610 82,234 3,000 56,409 9,943 5,450 9,217 4,848 10,731	0.36% 1.95% 5.30% - % 0.16% 19.99% 19.99% - % 0.007% 97.09% 100.00% 31.58% 99.84% 100.00% 50.00% 65.81% 100.00% 100.00% 100.00% 50.00% 33.18% 11.05% 100.00% 19.99% 19.99% 100.00%	108,178 575,634 90,445 - 11 202,442 160,810 17 39 23,256 23,231 - 7,045 357,879 3,336,437 166,256 622,409 443,895 1,403,361 1,919 539,906 159,206 245,820 202,485 160,809 113,330	(282,826) 1,039,594 (208,687) (33,255) 61 40,665 22,619 150,322 (18,765) (33,255) (1,853) - 61 (131,486) 3,051,157 9,805 33,416 11,411 45,074 (69) (208,687) 8,554 6,444 40,665 22,619 6,429	(1,018) 19,995 (12,166) - - 8,129 4,522 2 (1) (32,014) (1,853) - 61 (131,486) 1,525,579 6,453 33,416 11,411 38,672 (34) (52,032) 122 6,444 8,131 4,521 6,429	Subsidiary Note 2 Subsidiary `〞` `〞` Subsidiary Subsidiary Note 4 `〞` `〞` Subsidiary Subsidiary Subsidiary `〞` `〞` Subsidiary Note 1 Subsidiary `〞` `〞` Subsidiary

~65~

Lien Hwa Industrial Holdings Corporation

Notes to the Parent Company Only Financial Statements

==> picture [466 x 344] intentionally omitted <==

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

Name of Name of invested Location Main business Original investment amount Held at yearend Investee income Investment gains
investment company company End of the period End of last year Number of shares Ratio Book value recognized in the current period recognized in the current period and losses Remarks
MiTAC Samoa Mitac Samoan General investment 166,915 166,915 5,395 100.00% 129,236 (5,320) (5,320) Subsidiary
Information Information Holding Islands
Technology Ltd.
Corp.
〞 Mitac Information Singapore Engineering of factory 15,794 6,413 - - % - - - Subsidiary
Technology affair monitoring for
(Singapore) Pte. Ltd. semiconductor
factories and network
communication system
engineering
〞 MiTAC Advance Taipei City Information Software 535,100 - 53,510 59.45% 664,980 8,544 8,107 Subsidiary
Technology Corp. Services, Computer Note 5
and Peripheral
Equipment
Manufacturing, Other
Electrical Engineering
and Electronic
Machinery Equipment
Manufacturing
MiTAC General Resources Taipei City Engineering of 337,548 337,548 18,000 100.00% 186,012 (164,048) (180,701) Subsidiary
Information Co., Ltd. network signal Note 2
Technology communication system
Corp. for railways and rapid
transit, engineering of
environmental
protection
(engineering of
systematic treatment
for waste gas)
General General Resources Hong Kong Engineering of 263,894 126,869 65,663 100.00% 16,825 (12,549) (12,549) Subsidiary
Resources (Hong Kong) Co., network signal
Co., Ltd. Ltd. communication system
for railways and rapid
transit
〞 GENERAL Vietnam Engineering of 12,185 12,185 - 100.00% 9,298 587 587 〞
RESOURCES network signal
VIETNAM communication system
COMPANY for railways and rapid
LIMITED transit
Samoa Mitac Aidixun Investment Samoan General investment 163,512 163,512 8,165 100.00% 128,802 (5,073) (5,073) 〞
Information Co.,Ltd. Islands
Holding Ltd.
----- End of picture text -----

Note 1: The parent company’s stocks possessed by subsidiaries have been deducted from the book value and these stocks were deemed as treasury stocks.

Note 2: The variance refers to the amortization of the difference in equity net value.

Note 3: The variance between the book value and the investment income recognized in the current period and invested company refers to the side stream transaction.
Note 4:The company acquired Asia Hydrogen Energy Corporation on November 30, 2023. The investment gains and losses recognized in this period are from the acquisition date to December 31, 2023.
Note5: On August 18, 2023, the board of directors of MiTAC Information Technology Corp. approved the division of innovative technology business group to MiTAC Advance Technology Corp. were exchanged for 50,000 thousand shares, totaling 50,100 thousand shares. The record date of the division is November 1, 2023. MiTAC Advance Technology Corp. completed cash capital increases of 4,900 thousand shares and 35,000 thousand shares on November 24 and December 6, 2023, respectively. MiTAC Information Technology Corp. subscribed for a total of 3,410 thousand shares. MiTAC Inc. subscribed for a total of 9,943 thousand shares.

(3) Information about the investment in China:

1. Relative information about the invested business in Mainland China:

Unit: NTD thousand

Name of the invested company in China (Note 2)	Main business	Paid-in capital amount	Investm ent method (Note 1)	Accumulated investment amount remitted from Taiwan at the beginning of current period	Investmen remitted or in the curr	t amount recovered ent period	Accumulated investment amount remitted from Taiwan at the end of current period	Investee income recognized in the current period	Direct and indirect shareholding of the Company	Investment income recognized in the current period	Investment book value at year end	Investment revenue received in the current period
					Remittance	Collection
Yantai Taihwa Food Industrial Co., Ltd. (II).1 Hifood(Shanghai) Co., Ltd. (II).2 Fujian Fuhua Gases Co., Ltd. (II).2 and 3 BOCLH Industrial Gases(Shanghai) Co., Ltd (II). 2 and 3	Manufacturing and sale of flour and flour processed food Rental and leasing business Research and development of industrial gases, development and technical service of electronics industrial gases Mainly in the business of gas production	1,232,224 656,700 824,911 580,438	(II) (II) (II) (II)	1,232,224 408,880 - 1,744	- - - -	- - - -	1,232,224 408,880 - 1,744	(131,312) 10,840 323,440 261,684	100.00% 65.81% 25.00% 50.00%	(131,312) 7,134 81,576 130,842	351,962 179,015 312,734 445,133	- - - -

~66~

Lien Hwa Industrial Holdings Corporation Notes to the Parent Company Only Financial Statements

Name of the invested company in China (Note 2)	Main business	Paid-in capital amount	Investm ent method (Note 1)	Accumulated investment amount remitted from Taiwan at the beginning of current period	Investment amount remitted or recovered in the current period	Investment amount remitted or recovered in the current period	Accumulated investment amount remitted from Taiwan at the end of current period	Investee income recognized in the current period	Direct and indirect shareholding of the Company	Investment income recognized in the current period	Investment book value at year end	Investment revenue received in the current period
					Remittance	Collection
Lien Xiong Investment (Shanghai) Co., Ltd. (II). 2 and 3 Shengpin Precision Gas (Shanghai) Co., Ltd. (II). 2 and 3 Lien Hwa Precision Gas (Chengdu) Co., Ltd. (II). 2 and 3 Lien Hwa Precision Gas (Dalian) Co., Ltd. (II). 2 and 3 Linde Lienhwa Gases (Wuhan) Co., Ltd. (II).2 and 3 Linde Lienhwa Gases (Chengdu) Co., Ltd. (II).2 and 3 BOCLH Industrial Gases (Beijing ) Co., Ltd. (II).2 and 3 BOCLH Industrial Gases (Lianxiong Gases) Co., Ltd. (II).2 and 3 Mitac (Shanghai) Business Management Consulting Co., Ltd. (II).2 Claridy Solutions (Wuxi), Inc. (II).2 Claridy Solutions (Nanjing), Inc. (II).2	General investment Mainly in the business of gas production `〞` `〞` `〞` `〞` Mainly in the business of production and manufacturing of chemical raw materials Mainly in the business of in the fields of electronic technology, industrial gases and sales of chemical products Business management consulting, business information consulting and system integration services Research and development of Radio Frequency Identification (RFID) technology; production and sale of the products Software research and development and software design	5,725,631 729,024 501,638 478,312 629,663 718,696 437,394 245,969 82,898 86,695 94,046	(II) (II) (II) (II) (II) (II) (II) (II) (II) (II) (II)	- - - - - - - - 31,708 32,439 60,800	- - - - - - - - - - -	- - - - - - - - - - -	- - - - - - - - 31,708 32,439 60,800	1,549,592 437,041 133,019 238,235 987,126 115,559 (32,388) 1,583 723 (10,115) 3,924	50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 100.00% 100.00% 100.00%	774,796 218,520 66,509 119,118 493,563 57,780 (16,194) 792 723 (10,115) 3,924	4,059,451 692,828 322,091 409,032 1,030,268 424,140 195,375 126,585 141,808 136,120 -	- - - - - - - - - - -

Note 1: Claridy Solutions (Nanjing), Inc. merged with Claridy Solutions (Wuxi), Inc. and Claridy Solutions (Wuxi), Inc. was the surviving company On October 20, 2023.

2. Information related to ceiling on investment in Mainland China

Company name	Accumulated amount of remittance from Taiwan to Mainland China at the end of period	Investment amount approved by the Investment Commission of the Ministry of Economic Affairs	Ceiling on investment in Mainland China imposed by the Investment Commission of the Ministry of Economic Affairs (Note 3)
The Company MiTAC Inc. MiTAC Information Technology Corp.	3,720,683 49,114 161,191	3,879,439 189,212 161,191	27,363,185 16,906,465 976,323

Note 1: Investment is divided into the following three categories:

(I) Engaged in direct investment in Mainland China;

(II) Investment in Mainland China through a third country company.

(III) Others.

Note 2: In the column of the investment income recognized in the current period:

(I) It should be specified if the investment is in preparation without any investment gain or loss resulted.

~67~

Lien Hwa Industrial Holdings Corporation Notes to the Parent Company Only Financial Statements

  - (II) The base for the recognition of investment income can be classified into three categories and it shall be specified.

     - (1) The financial statements audited and attested by the CPA Firms of the parent company in Taiwan;

     - (2) Other- Self-prepared financial statement

(3) The investment income is recognized based on the shareholding of that company as held by Fortune Dragon Holding Inc. indirectly.
Note 3: According to the regulation in the “Principle of Review on Investment and Technical Cooperation in Mainland China” issued by the Investment Commission on August 29, 2008, 60% of the net value is used for the calculation.
Note 4: The numbers in said table are stated in New Taiwan Dollars.
Note 5: The Company invested in Quan Ye Trading Co., Ltd indirectly. The original investment cost was US$1,000 thousand. The equity was disposed of and US$486 thousand of the investment amount was collected and settled in May 2017. It was reported to the Investment Commission of the Ministry of Economic Affairs for future reference and cancellation as of December 31, 2023. After the capital is remitted back to Taiwan, the amount will be deducted from the used amount of the approved limit in Mainland China.
Material transactions: None.
(4) Information on major shareholders:

Material transactions: None. Information on major shareholders:
Shares Name of major shareholder	No. of shares held	Shareholding percentage
UPC TechnologyCorp.	153,289,977	9.68%
Yih Yuan Investment Corp.	144,804,821	9.14%

Note: The major shareholders in this table are shareholders holding more than 5% of the common and preference shares that have completed delivery of non-physical registration (including treasury shares) on the last business day of December 2023 calculated by the Taiwan Depository & Clearing Corporation. However, the share capital recorded in the Company’s financial report and the number of shares actually delivered by the company without physical registration may differ due to calculation

(XIV) Department information

Please refer to the year 2023 consolidated financial statements.

~68~

Lien Hwa Industrial Holdings Corporation

Statement of Cash and Cash Equivalents

December 31, 2023

(In Thousands of New Taiwan Dollars)

Item	Description	Amount $ 71,890 38 347,099
Cash in bank Time deposits Total	Demand deposits Foriegn deposits (CNY 485 thousand)
		$ 419,027

~69~

Lien Hwa Industrial Holdings Corporation

Statement of Changes in Financial Assets Measured at fair Value through Other

－ Comprehensive Income Non-current For the year ended December 31, 2023 (In Thousands of New Taiwan Dollars)

Name of financial instrument	Beginning Balance	Beginning Balance	Addition	Addition	Decrease	Decrease	Ending balance	Ending balance
	Shares (in thousand)	Fair value	Shares (in thousand)	Amount	Shares (in thousand)	Amount	Shares (in thousand)	Fair value
Great Wall Enterprise Co., Ltd. MiTAC Holdings Corp. SYNNEX Technology International Corp. Pao Long International Co., Ltd. Getac Holdings Corp. Formosa Golf and Country Club Corp. Hsin Yu Energy Development Co., Ltd. Harbinger Venture Capital Corp. Global Investment Holdings Co. Ltd. Shihlien Fine Chemicals Co., Ltd.	19,013$ 866,033 105,941 3,125,258 59,526 3,523,946 2,365 39,858 7,210 318,321 2 332 6,076 - 7 53 1,754 18,625 24,384 64,050 $ 7,956,476		- - - - - - - - - -	246,216 1,594,411 654,788 - 481,989 8 - - 8,291 -	- - - - - - - - 351 -	- - - 3,194 - - - 7 - 28,758	19,013 105,941 59,526 2,365 7,210 2 6,076 7 1,403 24,384	1,112,249 4,719,669 4,178,734 36,664 800,310 340 - 46 26,916 35,292 10,910,220
				2,985,703		31,959

~70~

Lien Hwa Industrial Holdings Corporation

Statement of Changes in Investments Accounted for Using the

Equity Method

For the year ended December 31, 2023

(In Thousands of New Taiwan Dollars)

Name of investee	Beginning Balance	Beginning Balance	Addition	Addition	Decrease Ending balance	Decrease Ending balance		Market Value or Net Assets Value Unit price Total amount	Market Value or Net Assets Value Unit price Total amount	Note
	Shares (in thousand) Amount		Shares (in thousand)	Amount	Shares (in thousand)	Amount Shares (in thousand) Percentage of ownership	Amount
Equity Method`－`Listed Company UPC Technology Corp. Equity Method`－`Unlisted company Linde Lienhwa Industrial Gases Co., Ltd. MiTAC Inc. MiTAC Information Technology Corp. Hua Cheng Investment Co., Ltd. Lienhwa United LPG Co., Ltd. Lien Rui Investment Corp. Fortune Dragon Holding Inc. Lien Hwa Milling Corp. Lien Hwa Property Development Corp. Lien Hwa Industrial Corp. Asia Hydrogen Energy Corp. Total	424,881$ 8,336,234 1,886 7,900,940 143,480 8,491,613 65,900 657,525 106,920 1,297,974 6,848 84,146 27,335 153,712 120,155 6,387,465 74,999 1,180,179 200,100 2,493,006 100 1,001 - - $ 36,983,795		- - - - - - - - - - 7,466	1,210,394 937,308 1,683,230 4,318 217,655 5,158 - 1,228,598 74,176 139,199 - 5 299,725	- - - - - - 6,335 - - - - -	- 424,881 32.07% - 1,886 50.00% - 143,480 35.89% - 65,900 38.77% - 106,920 100.00% - 6,848 24.04% 33,908 27,335 100.00% - 120,155 100.00% - 74,999 74.999% - 200,100 100.00% - 100 100.00% - 100 50.93% 33,908	9,546,628 8,838,248 10,174,843 661,843 1,515,629 89,304 119,804 7,616,063 1,254,355 2,632,205 1,006 299,725	15.20 6,458,191 4,686.24 8,838,248 70.48 10,112,884 9.57 630,867 14.28 1,527,251 13.04 89,304 10.89 119,791 63.39 7,616,062 25.08 1,251,644 13.15 2,632,205 10.06 1,006 26.40 197,099 39,474,552		Note1,2,3 Note1,4 Note3 Note4 Note4 Note1,2
		$ 36,983,795		5,799,766			42,749,653		39,474,552

Note1: The difference between the closing balance and the net equity value is the difference due to goodwill.

Note2: The difference between the closing balance and the net equity value is the difference arising from the amortization of the difference in equity net value..

Note3: The difference between the balance at the end of the period and the net equity value is because the book value has been deducted from the parent company's stock held by the subsidiary and treated as treasury stock. Note4: The difference between the closing balance and the net equity value is due to side stream transactions.

~71~

Lien Hwa Industrial Holdings Corporation

Statement of Short-term loan

December 31, 2023 (In Thousands of New Taiwan Dollars)

Type	Description	Ending balance	Contract Period	Range of interest rate Loan commitment	Collateral None Note	Note
Unsecured loans Secured loan Total		$ 3,250,000 1,600,000	2023.07.06~2024.03.06 2023.12.08~2024.01.08	1.66%~1.71% 5,510,575 1.65% 3,000,000
		$ 4,850,000

Note ： The subsidiary Lien Hwa Property Development Corporation provided property, plant, and equipment and investment property as guarantee for bank loans. Please refer to Note 7 for details.

~72~

Lien Hwa Industrial Holdings Corporation

Statement of Short-term notes payable

December 31, 2023 (In Thousands of New Taiwan Dollars)

				Amount
				Unamortized
				discount on
	Bills Finance	Term of	Term of Issue	commercial	Book
Item	Companies	contract	Interest rate amount	promissory notes payable	value	Note
Short-term		2023.12.20~	1.45%~1.51% $ 200,000	(8)	199,992
notes payable		2024.01.02
		Lien Hwa Industrial Holdings Corporation
			Statement of Other	payables
			December 31, 2023
		(In Thousands of New Taiwan Dollars)

Item	Description	Amount $ 23,910 29,242 1,944 29,801 $ 84,897
Other payables Total	Payables for salary and bonus Dividend payable Related party Other

~73~

Lien Hwa Industrial Holdings Corporation

Statement of Long-term loan

December 31, 2023

(In Thousands of New Taiwan Dollars)

Creditor	Description	Amount	Term of contract	Interest rate	Collateral Note `-` Repayment due to loan contract. `-` `〞`
Agricultural Bank of Taiwan Far Eastern International Bank Less：current portion of long-term loans payable Total		$ 500,000 300,000 -	2022.08.22-2025.08.22 2023.09.12-2025.09.12	1.70% 1.70%
		$ 800,000

~74~

Lien Hwa Industrial Holdings Corporation

Statement of Administrative Expenses For the year ended December 31, 2023 (In Thousands of New Taiwan Dollars)

Item	Description	Amount $ 31,328 11,482 4,944 6,193	Note
Salary and wages expense Remuneration of Directors Services expense Other expense Total			The balance of each item does not exceed 5%.
		$ 53,947

~75~

AI assistant

LHIHC — Audit Report / Information 2023

51754_rns_2023-11-10_2b68dca9-8e7a-4329-8b89-5b3c24b05e89.pdf

Lien Hwa Industrial Holdings Corporation Parent Company Only Financial Statements and Independent Auditor's Report December 31, 2023 and 2022

Independent Auditors’ Report

Opinion

Basis for opinion

Key audit matters

The responsibility of the management and the governing body for the parent company only financial statements

Our responsibility for the audit of the parent company only financial statements

KPMG

Lien Hwa Industrial Holdings Corporation

Parent Company Only Balance Sheet

December 31, 2023 and 2022

(Expressed in Thousands of New Taiwan Dollars)

Lien Hwa Industrial Holdings Corporation

Parent Company Only Statements of Comprehensive Income

For the years ended December 31, 2023 and 2022

(Expressed in thousands of New Taiwan Dollars , except for earnings per common share)

Lien Hwa Industrial Holdings Corporation

Parent Company Only Statements of Changes in Equity

For the years ended December 31, 2023 and 2022

(Expressed in Thousands of New Taiwan Dollars)

Lien Hwa Industrial Holdings Corporation

Parent Company Only Statement of Cash Flows

For the years ended December 31, 2023 and 2022

(Expressed in Thousands of New Taiwan Dollars)

Lien Hwa Industrial Holdings Corporation

Parent Company Only Statement of Cash Flows For the years ended December 31, 2023 and 2022

(Expressed in Thousands of New Taiwan Dollars)

Lien Hwa Industrial Holdings Corporation Notes to the Parent Company Only Financial Statements

Lien Hwa Industrial Holdings Corporation

Notes to the Parent Company Only Financial Statements For the years ended December 31, 2023 and 2022

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

I. Company profile

II. Financial report approval date and procedures

III. Application of new standards, amendments and interpretations

Lien Hwa Industrial Holdings Corporation Notes to the Parent Company Only Financial Statements

IV. Summary of Significant Accounting Policies

Lien Hwa Industrial Holdings Corporation Notes to the Parent Company Only Financial Statements

Lien Hwa Industrial Holdings Corporation Notes to the Parent Company Only Financial Statements

Lien Hwa Industrial Holdings Corporation Notes to the Parent Company Only Financial Statements

(VI) Financial instruments

(1) Financial assets measured at amortized cost

Lien Hwa Industrial Holdings Corporation Notes to the Parent Company Only Financial Statements

Lien Hwa Industrial Holdings Corporation Notes to the Parent Company Only Financial Statements

Lien Hwa Industrial Holdings Corporation Notes to the Parent Company Only Financial Statements

Lien Hwa Industrial Holdings Corporation Notes to the Parent Company Only Financial Statements

Lien Hwa Industrial Holdings Corporation Notes to the Parent Company Only Financial Statements

Lien Hwa Industrial Holdings Corporation Notes to the Parent Company Only Financial Statements

(IX) Investment property

Lien Hwa Industrial Holdings Corporation Notes to the Parent Company Only Financial Statements

Lien Hwa Industrial Holdings Corporation Notes to the Parent Company Only Financial Statements

(XIII) EPS

(XIV) Department information

V. Significant accounting judgments, estimations and major sources of assumption uncertainty

Lien Hwa Industrial Holdings Corporation Notes to the Parent Company Only Financial Statements

VI. Description of significant accounting items

Lien Hwa Industrial Holdings Corporation

Notes to the Parent Company Only Financial Statements

(4) Other receivables

(5) Investment under equity method

1. Subsidiaries

2. Affiliates

Lien Hwa Industrial Holdings Corporation Notes to the Parent Company Only Financial Statements

Lien Hwa Industrial Holdings Corporation Notes to the Parent Company Only Financial Statements

Lien Hwa Industrial Holdings Corporation Notes to the Parent Company Only Financial Statements

3. Collateral

(6) Investment property

Lien Hwa Industrial Holdings Corporation

Notes to the Parent Company Only Financial Statements

Lien Hwa Industrial Holdings Corporation

Notes to the Parent Company Only Financial Statements

(11) Employee benefits

1. Defined benefit plan

(1) Composition of plan assets

(2) Changes in the present value of defined benefit obligation:

Lien Hwa Industrial Holdings Corporation

Notes to the Parent Company Only Financial Statements

(3) Changes in the fair value of plan assets

LHIHC Audit Report / Information 2023