Maywufa - Interim / Quarterly Report 2024

Maywufa Company Ltd. and Subsidiaries

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

INDEPENDENT AUDITORS’ REVIEW REPORT

The Board of Directors and Shareholders Maywufa Company Ltd.

Introduction

We have reviewed the accompanying consolidated balance sheets of Maywufa Company and its subsidiaries (collectively, the “Group”) as of March 31, 2024 and 2023, and the related consolidated statements of comprehensive income, the consolidated statements of changes in equity and cash flows for the three months then ended, and the related notes to the consolidated financial statements, including material accounting policy information (collectively referred to as the “consolidated financial statements”). Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and International Accounting Standard 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews.

Scope of Review

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

Conclusion

Based on our reviews and the report of other auditors (refer to the other matter paragraph), nothing has come to our attention that caused us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Group as of March 31, 2024 and 2023, and of its consolidated financial performance and its consolidated cash flows for the three months ended March 31, 2024 and 2023 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and International Accounting Standard 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

Other Matter

We did not review the financial statements of PhytoHealth Corporation, AmCad BioMed Corporation and Broadsound Corporation accounted for using the equity method as of March 31, 2024 and 2023, but such statements were reviewed by other auditors. Our conclusion, insofar as it relates to the amounts of investments accounted for using the equity method and other comprehensive income included in the consolidated financial statements for these investees, is based solely on the reports of other auditors. According to the reports of other auditors as of March 31, 2024 and 2023, the amounts of the investments accounted for using the equity method of Maywufa Group were NT$512,894 thousand and NT$503,975 thousand, respectively, representing 17% and 19%, respectively, of the consolidated total assets; for the three months ended March 31, 2024 and 2023, the amounts of investments accounted for using the equity method - losses recognized by Maywufa Group were NT$6,537 thousand and NT$2,876 thousand, respectively, representing (9%) and (4%), respectively, of the consolidated total profit before income tax.

The engagement partners on the reviews resulting in this independent auditors’ review report are Hai-Yueh Huang and Cheng-Chuan Yu.

Deloitte & Touche Taipei, Taiwan Republic of China May 8, 2024

Notice to Readers

The accompanying consolidated financial statements are intended only to present the consolidated financial position, financial performance and cash flows in accordance with accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to review such consolidated financial statements are those generally applied in the Republic of China.

For the convenience of readers, the independent auditors’ review report and the accompanying consolidated financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language independent auditors’ review report and consolidated financial statements shall prevail.

MAYWUFA COMPANY LTD. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In Thousands of New Taiwan Dollars)

ASSETS CURRENT ASSETS Cash and cash equivalents (Note 6) Financial assets at fair value through profit or loss (Note 7) Notes receivable (Notes 8 and 22) Accounts receivable (Notes 8, 22 and 29) Other receivables (Notes 8 and 29) Inventories (Note 9) Prepayments Other financial assets - current (Note 10) Other current assets (Note 16) Total current assets NON-CURRENT ASSETS Financial assets at fair value through other comprehensive income - non-current (Note 12) Investments accounted for using the equity method (Note 13) Property, plant and equipment (Notes 14 and 30) Right-of-use assets (Note 15) Intangible assets Deferred tax assets (Note 4) Refundable deposits Net defined benefit assets - non-current (Note 4) Other non-current assets (Note 16) Total non-current assets TOTAL LIABILITIES AND EQUITY CURRENT LIABILITIES Short-term borrowings (Note 17) Notes payable (Note 18) Accounts payable (Notes 18 and 29) Other payables (Notes 19 and 29) Current tax liabilities (Note 4) Lease liabilities - current (Note 15) Other current liabilities Total current liabilities NON-CURRENT LIABILITIES Long-term borrowings (Notes 17 and 30) Deferred tax liabilities Lease liabilities - non-current (Note 15) Guarantee deposits (Note 29) Total non-current liabilities Total liabilities EQUITY ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT (Note 21) Share capital - ordinary shares Capital surplus Retained earnings Legal reserve Special reserve Unappropriated earnings Total retained earnings Other equity Total equity TOTAL		March 31, 2024 Amount % $ 166,796 6 - - 23,518 1 302,153 10 3,529 - 253,868 8 2,003 - 465,470 15 3,161 - 1,220,498 40 129,925 4 515,263 17 1,013,706 34 2,578 - 4,415 - 33,661 1 5,391 - 59,834 2 59,202 2 1,823,975 60 $ 3,044,473 100 $ 35,000 1 474 - 99,011 3 226,200 8 49,146 2 1,689 - 29,903 1 441,423 15 485,657 16 33 - 944 - 1,945 - 488,579 16 930,002 31 1,329,152 43 189,395 6 197,797 7 106,162 3 362,381 12 666,340 22 (70,416) (2) 2,114,471 69 $ 3,044,473 100		December 31, 2023 Amount % $ 178,481 6 - - 22,522 1 226,268 8 2,927 - 257,911 9 1,321 - 395,130 14 1,576 - 1,086,136 38 127,105 5 507,561 18 956,203 34 4,588 - 4,637 - 26,117 1 5,336 - 59,742 2 54,646 2 1,745,935 62 $ 2,832,071 100 $ - - 125 - 83,514 3 215,573 7 25,631 1 3,564 - 25,581 1 353,988 12 437,893 16 5 - 1,084 - 1,945 - 440,927 16 794,915 28 1,329,152 47 189,320 7 197,797 7 106,162 3 304,546 11 608,505 21 (89,821) (3) 2,037,156 72 $ 2,832,071 100		March 31, 2023
						Amount % $ 183,492 7 30,033 1 24,212 1 267,903 10 2,883 - 220,859 9 2,684 - 381,370 14 1,374 - 1,114,810 42 123,099 5 506,363 19 800,996 30 6,366 - 3,766 - 27,193 1 5,188 - 60,163 2 27,350 1 1,560,484 58 $ 2,675,294 100 $ - - 15 - 79,383 3 218,212 8 37,994 2 6,517 - 24,110 1 366,231 14 251,751 9 6 - - - 1,789 - 253,546 9 619,777 23 1,329,152 50 188,049 7 178,465 7 59,357 2 403,083 15 640,905 24 (102,589) (4) 2,055,517 77 $ 2,675,294 100

The accompanying notes are an integral part of the consolidated financial statements.

(With Deloitte & Touche review report dated May 8, 2024)

MAYWUFA COMPANY LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

OPERATING REVENUE (Notes 22 and 29) OPERATING COSTS (Notes 9, 23 and 29) GROSS PROFIT OPERATING EXPENSES (Notes 20, 23 and 29) Selling and marketing expenses General and administrative expenses Expected credit impairment loss (Note 8) Total operating expenses PROFIT FROM OPERATIONS NON-OPERATING INCOME AND EXPENSES (Note 23) Interest income Other revenue (Note 29) Other gains and losses Interest expense Share of loss of associates (Note 13) Total non-operating income and expenses PROFIT BEFORE INCOME TAX INCOME TAX EXPENSE (Notes 4 and 24) NET PROFIT OTHER COMPREHENSIVE INCOME (LOSS) (Notes 13 and 21) Items that will not be reclassified subsequently to profit or loss Unrealized gain (loss) on investments in equity instruments at fair value through other comprehensive income Share of the other comprehensive income of associates accounted for using the equity method		For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2024 Amount % $ 407,701 100 137,842 34 269,859 66 169,808 42 26,377 6 777 - 196,962 48 72,897 18 1,818 - 2,973 1 304 - (11) - (6,343) (2) (1,259) (1) 71,638 17 13,803 3 57,835 14 2,820 1 13,970 3		2023
				Amount % $ 344,974 100 118,664 34 226,310 66 136,782 40 23,819 7 649 - 161,250 47 65,060 19 1,683 - 3,022 1 337 - (31) - (2,865) (1) 2,146 - 67,206 19 14,533 4 52,673 15 3,871 1 1,210 1 (Continued)

MAYWUFA COMPANY LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

Items that may be reclassified subsequently to profit and loss Exchange differences on translation of financial statements of foreign operations Total other comprehensive income (loss) (net of income tax) TOTAL COMPREHENSIVE INCOME FOR THE PERIOD NET INCOME ATTRIBUTABLE TO: Shareholders of the parent TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO: Shareholders of the parent EARNINGS PER SHARE (Note 25) Basic Diluted		For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2024 Amount % $ 2,615 1 19,405 5 $ 77,240 19 $ 57,835 14 $ 77,240 19 $ 0.44 $ 0.43		2023
				Amount % $ 763 - 5,844 2 $ 58,517 17 $ 52,673 15 $ 58,517 17 $ 0.40 $ 0.40

The accompanying notes are an integral part of the consolidated financial statements. (With Deloitte & Touche review report dated May 8, 2024) (Concluded)

MAYWUFA COMPANY LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (In Thousands of New Taiwan Dollars, Except Dividends Per Share)

Share Capital Capital Surplus BALANCE AT JANUARY 1, 2023 $ 1,329,152 $ 188,042 Other changes in capital surplus Changes in capital surplus from investments in associates accounted for using the equity method (Notes 13 and 21) - 7 Disposal of investments in equity instruments designated at fair value through other comprehensive income by associates (Notes 13 and 21) - - Net profit for the three months ended March 31, 2023 - - Other comprehensive income (loss) for the three months ended March 31, 2023 - - Total comprehensive income (loss) for the three months ended March 31, 2023 - - BALANCE AT MARCH 31, 2023 $ 1,329,152 $ 188,049 BALANCE AT JANUARY 1, 2024 $ 1,329,152 $ 189,320 Other changes in capital surplus Changes in capital surplus from investments in associates accounted for using the equity method (Notes 13 and 21) - 75 Net profit for the three months ended March 31, 2024 - - Other comprehensive income (loss) for the three months ended March 31, 2024 - - Total comprehensive income (loss) for the three months ended March 31, 2024 - - BALANCE AT MARCH 31, 2024 $ 1,329,152 $ 189,395	Retained Earnings (Note 21) Legal Reserve Special Reserve Unappropriated Earnings $ 178,465 $ 59,357 $ 348,139 - - - - - 2,271 - - 52,673 - - - - - 52,673 $ 178,465 $ 59,357 $ 403,083 $ 197,797 $ 106,162 $ 304,546 - - - - - 57,835 - - - - - 57,835 $ 197,797 $ 106,162 $ 362,381	Other Equity (Note 21) Exchange Differences on Translation of Financial Statements of Unrealized Gain (Loss) on Financial Assets at Fair Value Through Other Foreign Operations Comprehensive Income $ (15,440) $ (90,722) - - - (2,271) - - 763 5,081 763 5,081 $ (14,677) $ (87,912) $ (18,070) $ (71,751) - - - - 2,615 16,790 2,615 16,790 $ (15,455) $ (54,961)	Total Equity $ 1,996,993
			7 - 52,673 5,844
			58,517
			$ 2,055,517
			$ 2,037,156
			75 57,835 19,405
			77,240
			$ 2,114,471

The accompanying notes are an integral part of the consolidated financial statements.

(With Deloitte & Touche review report dated May 8, 2024)

MAYWUFA COMPANY LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars)

CASH FLOWS FROM OPERATING ACTIVITIES Profit before income tax Adjustments for: Depreciation expenses Amortization expenses Expected credit impairment loss Net gain on fair value changes of financial assets at fair value through profit or loss Interest expense Interest income Share of loss of associates Changes in operating assets and liabilities: Financial assets at fair value through profit or loss Notes receivable Accounts receivable Other receivables Inventories Net defined benefit assets Prepayments Other current assets Notes payable Accounts payable Other payables Other current liabilities Cash generated from operations Interest paid Income tax returned Income tax paid Net cash generated from operating activities CASH FLOWS FROM INVESTING ACTIVITIES Payments for property, plant and equipment Increase in refundable deposits Payments for intangible assets Increase in other financial assets Decrease in other non-current assets Increase in prepayments for equipment Interest received Net cash used in investing activities	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2024 $ 71,638 6,780 436 777 (11) 11 (1,818) 6,343 11 (1,007) (76,651) (300) 4,116 (92) (677) (1,585) 349 15,497 11,793 4,310 39,920 (1,201) 2,196 - 40,915 (61,004) (55) (214) (70,340) - (4,651) 1,516 (134,748)	2023 $ 67,206 6,927 381 649 (73) 31 (1,683) 2,865 22,044 (2,239) (62,698) (445) 11,512 (11) (1,257) (475) (235) 1,128 (4,068) (992) 38,567 (109) - (14) 38,444 (38,511) (32) (538) (26,500) 4 - 1,290 (64,287) (Continued)

MAYWUFA COMPANY LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars)

CASH FLOWS FROM FINANCING ACTIVITIES Increase in short-term borrowings Proceeds from long-term borrowings Decrease in guarantee deposits Repayment of the principal portion of lease liabilities Net cash generated from financing activities EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCE OF CASH AND CASH EQUIVALENTS HELD IN FOREIGN CURRENCIES NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2024 $ 35,000 47,764 - (2,015) 80,749 1,399 (11,685) 178,481 $ 166,796	2023 $ - 33,566 (104) (2,050) 31,412 419 5,988 177,504 $ 183,492

The accompanying notes are an integral part of the consolidated financial statements. (With Deloitte & Touche review report dated May 8, 2024) (Concluded)

MAYWUFA COMPANY LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED MARCH 31, 2024 AND 2023 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

1. GENERAL INFORMATION

Maywufa Company Ltd. (the “Company”), along with the Company-controlled subsidiaries (collectively known as the “Group”), was incorporated in the Republic of China (ROC) in October 1976. The Company’s Chinese name was changed on April 30, 1998. The Company’s shares have been listed on the Taiwan Stock Exchange (TWSE) since September 17, 2001.

The main business of the Company are as follows:

a. Manufacturing, processing and distribution of all kinds of hairdressing products (cleaning agents) soap, wholesale trading and agency.
b. Manufacturing, processing and distribution of all kinds of cosmetics (except highly toxic), wholesale trading and agency, and trading of various department stores (the cosmetics manufacturing and processing department is limited to the main products of the factory).
c. Distribution, wholesale and retail trading of various beauty products, health products and sports equipment.
d. Retail and wholesale business of health food such as vitamin pills and oral liquid nutrients.
e. Trading, wholesale and retail of medical drugs and medical equipment.
f. Wholesale and retail sales of food, baby products and general food products enriched with vitamins, amino acids and minerals.
g. The consulting and analysis business managed by the Pharmaceutical Affairs Bureau.
h. Warehousing.

The consolidated financial statements are presented in the Company’s functional currency, the New Taiwan dollar.

2. APPROVAL OF FINANCIAL STATEMENTS

The consolidated financial statements were approved by the Company’s board of directors on May 8, 2024.

3. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS

a. Initial application of the amendments to the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, the “IFRS Accounting Standards”) endorsed and issued into effect by the Financial Supervisory Commission (FSC)

The initial application of the IFRS Accounting Standards endorsed and issued into effect by the FSC did not have a material impact on the Group’s accounting policies.

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b. The IFRS Accounting Standards in issue but not yet endorsed and issued into effect by the FSC

New, Amended and Revised Standards and Interpretations

Effective Date Announced by IASB (Note 1)

Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets To be determined by IASB between an Investor and its Associate or Joint Venture” IFRS 17 “Insurance Contracts” January 1, 2023 Amendments to IFRS 17 January 1, 2023 Amendments to IFRS 17 “Initial Application of IFRS 9 and IFRS 17 - January 1, 2023 Comparative Information” IFRS 18 “Presentation and Disclosure in Financial Statements” January 1, 2027 Amendments to IAS 21 “Lack of Exchangeability” January 1, 2025 (Note 2)

Note 1: Unless stated otherwise, the above IFRS Accounting Standards are effective for annual reporting periods beginning on or after their respective effective dates.
Note 2: An entity shall apply those amendments for annual reporting periods beginning on or after January 1, 2025. Upon initial application of the amendments to IAS 21, the Group shall not restate the comparative information and shall recognize any effect of initially applying the amendments as an adjustment to the opening balance of retained earnings or, if applicable, to the cumulative amount of translation differences in equity as well as affected assets or liabilities.

IFRS 18 “Presentation and Disclosures in Financial Statements”

IFRS 18 will supersede IAS 1 “Presentation of Financial Statements”. The main changes comprise:

Items of income and expenses included in the statement of profit or loss shall be classified into the operating, investing, financing, income taxes and discounted operations categories.
The statement of profit or loss shall present totals and subtotals for operating profit or loss, profit or loss before financing and income taxes and profit or loss.
Provides guidance to enhance the requirements of aggregation and disaggregation: The Group shall identify the assets, liabilities, equity, income, expenses and cash flows that arise from individual transactions or other events and shall classify and aggregate them into groups based on shared characteristics, so as to result in the presentation in the primary financial statements of line items that have at least one similar characteristic. The Group shall disaggregate items with dissimilar characteristics in the primary financial statements and in the notes. The Group labels items as “other” only if it cannot find a more informative label.
Disclosures on Management-defined Performance Measures (MPMs): When in public communications outside financial statements and communicating to users of financial statements management’s view of an aspect of the financial performance of the Group as a whole, the Group shall disclose related information about its MPMs in a single note to the financial statements, including the description of such measures, calculations, reconciliations to the subtotal or total specified by IFRS Accounting Standards and the income tax and non-controlling interests effects of related reconciliation items.

As of the date the consolidated financial statements were authorized for issue, the Group is continuously assessing the possible impact of the application of the above standards and interpretations on the Group’s financial position and financial performance and will disclose the relevant impact when the assessment is completed.

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4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

a. Statement of compliance

These interim consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IAS 34 “Interim Financial Reporting” as endorsed and issued into effect by the FSC. Disclosure information included in these interim consolidated financial statements is less than the disclosure information required in a complete set of annual consolidated financial statements.

b. Basis of preparation

The consolidated financial statements have been prepared on the historical cost basis except for financial instruments which are measured at fair value, and net defined benefit assets which are measured at the present value of the defined benefit obligation less the fair value of plan assets.

The fair value measurements, which are grouped into Levels 1 to 3 based on the degree to which the fair value measurement inputs are observable and based on the significance of the inputs to the fair value measurement in its entirety, are described as follows:

1) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities;
2) Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for an or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and
3) Level 3 inputs are unobservable inputs for the asset or liability.
c. Basis of consolidation

The consolidated financial statements incorporate the consolidated financial statements of the Company and the entities controlled by the Company (i.e., its subsidiaries). All intra-group transactions, balances, income and expenses are eliminated in full upon consolidation. Total comprehensive income of subsidiaries is attributed to the owners of the Company.

Refer to Notes 11 and 34, Tables 2 and 3 for detailed information on subsidiaries (including percentages of ownership and main businesses).

d. Other material accounting policies

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

1) Classification of current and non-current assets and liabilities

Current assets include:

Assets held primarily for the purpose of trading;
Assets expected to be realized within 12 months after the reporting period; and
Cash and cash equivalents unless the asset is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period.
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Current liabilities include:

Liabilities held primarily for the purpose of trading;
Liabilities due to be settled within 12 months after the reporting period, even if an agreement to refinance, or to reschedule payments, on a long-term basis is completed after the reporting period and before the consolidated financial statements are authorized for issue; and
Liabilities for which the Group does not have the substantial right at the end of the reporting period to defer settlement for at least 12 months after the reporting period.

Assets and liabilities that are not classified as current are classified as non-current.

The Group is engaged in the construction business, which has an operating cycle of over 1 year. The normal operating cycle applies when considering the classification of the Group’s construction-related assets and liabilities.

2) Retirement benefits

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

3) Income tax expense

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

5. MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

Refer to the consolidated financial statements for the year ended December 31, 2023 for material accounting judgments and key sources of estimation uncertainty.

6. CASH AND CASH EQUIVALENTS

			December 31,	December 31,
	March 31, 2024			2023	March 31, 2023
Cash on hand and petty cash	$	120	$	120	$	120
Checking accounts and demand deposits		43,842		119,081		34,287
Cash equivalents
Time deposits with original maturities of
3 months or less		48,170		59,280		74,030
Call deposits with original maturities of
3 months or less		74,664		-		75,055
	$	166,796	$	178,481	$	183,492

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The market interest rate intervals of bank deposits at the end of the reporting period were as follows:

7.
8.

March 31, 2024
December 31,
2023
March 31, 2023
Demand deposits
0.05%-1.45%
0.05%-1.45%
0.35%-1.25%
Time deposits with original maturities of
3 months or less
1.225%-1.275%
1.10%
1.10%-1.16%
Call deposits with original maturities of
3 months or less
1.55%
-
2.025%
FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS
March 31, 2024
December 31,
2023
March 31, 2023
Current
Mutual funds
$ -
$ -
$ 30,033
NOTES RECEIVABLE, ACCOUNTS RECEIVABLE AND OTHER RECEIVABLES
March 31, 2024
December 31,
2023
March 31, 2023
Notes receivable
At amortized cost
Gross carrying amount
$ 23,756
$ 22,749
$ 24,474
Less: Allowance for impairment loss
(238)
(227)
(262)
$ 23,518
$ 22,522
$ 24,212
Accounts receivable
At amortized cost
Gross carrying amount
$ 305,214
$ 228,563
$ 270,646
Less: Allowance for impairment loss
(3,061)
(2,295)
(2,743)
$ 302,153
$ 226,268
$ 267,903
Other receivables
Interest
$ 556
$ 254
$ 580
Other
195
128
63
751
382
643
Other receivables from related parties
2,778
2,545
2,240
$ 3,529
$ 2,927
$ 2,883

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a. Notes receivable

The average credit period of sales of goods is 1-7 months. No interest is charged on notes receivable. In order to minimize credit risk, the management of the Group has delegated a team responsible for determining credit limits, credit approvals and other monitoring procedures to ensure that follow-up action is taken to recover overdue debts. The Group transacts with a large number of unrelated customers; therefore, credit risk is not highly concentrated. In this regard, the management believes the Group’s credit risk is significantly reduced.

The Group measures the loss allowance for notes receivable at an amount equal to lifetime ECLs. The expected credit losses on notes receivable are estimated using a provision matrix by reference to the past default records of the customer and the customer’s current financial position. As the Group’s historical credit loss experience does not show significantly different loss patterns for different customer segments, the provision for loss allowance based on past due status is not further distinguished according to the Group’s different customer base.

The Group writes off a note receivable when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery. For notes receivable that have been written off, the Group continues to engage in enforcement activity to attempt to recover the receivables due. Where recoveries are made, these are recognized in profit or loss.

The following table details the loss allowance of notes receivable based on the Group’s provision matrix:

March 31, 2024

Not Past Due 1 to 60 Days Past Due Expected credit loss rate 1% - Gross carrying amount $ 23,756 $ - Loss allowance (Lifetime ECLs) (238) - Amortized cost $ 23,518 $ - December 31, 2023 Not Past Due 1 to 60 Days Past Due Expected credit loss rate 1% - Gross carrying amount $ 22,749 $ - Loss allowance (Lifetime ECLs) (227) - Amortized cost $ 22,522 $ -	61 to 90 Days Past Due - $ - - $ - 61 to 90 Days Past Due - $ - - $ -	91 to 120 Days Past Due - $ - - $ - 91 to 120 Days Past Due - $ - - $ -	Over 120 Days Past Due - $ - - $ - Over 120 Days Past Due - $ - - $ -	Total $ 23,756 (238) $ 23,518 Total $ 22,749 (227) $ 22,522

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March 31, 2023

Not Past Due 1 to 60 Days Past Due Expected credit loss rate 1.07% - Gross carrying amount $ 24,474 $ - Loss allowance (Lifetime ECLs) (262) - Amortized cost $ 24,212 $ -	61 to 90 Days Past Due - $ - - $ -	91 to 120 Days Past Due - $ - - $ -	Over 120 Days Past Due - $ - - $ -	Total $ 24,474 (262) $ 24,212

The movements of the loss allowance of notes receivable were as follows:

Balance at January 1 Add: Provision Balance at March 31	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2024 $ 227 11 $ 238	2023 $ 210 52 $ 262

b. Accounts receivable

The average credit period of sales of goods is 1-7 months. No interest is charged on accounts receivable. In order to minimize credit risk, the management of the Group has delegated a team responsible for determining credit limits, credit approvals and other monitoring procedures to ensure that follow-up action is taken to recover overdue debts. The Group transacts with a large number of unrelated customers; therefore, credit risk is not highly concentrated. In this regard, the management believes the Group’s credit risk was significantly reduced.

The Group measures the loss allowance for accounts receivable at an amount equal to lifetime ECLs. The expected credit losses on accounts receivable are estimated using a provision matrix prepared by reference to the past default records of the customer and the customer’s current financial position. As the Group’s historical credit loss experience does not show significantly different loss patterns for different customer segments, the provision for loss allowance based on past due status is not further distinguished according to the Group’s different customer bases.

The Group writes off an account receivable when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery, e.g. when the debtor has been placed under liquidation, or when the trade receivables are over 180 days past due, whichever occurs earlier. For accounts receivable that have been written off, the Group continues to engage in enforcement activity to attempt to recover the receivables due. Where recoveries are made, these are recognized in profit or loss.

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The following table details the loss allowance of notes receivable based on the Group’s provision matrix:

March 31, 2024

Not Past Due 1 to 60 Days Past Due Expected credit loss rate 1% 1.1% Gross carrying amount $ 296,635 $ 8,579 Loss allowance (Lifetime ECLs) (2,966) (95) Amortized cost $ 293,669 $ 8,484 December 31, 2023 Not Past Due 1 to 60 Days Past Due Expected credit loss rate 1% 1%-1.02% Gross carrying amount $ 223,209 $ 5,350 Loss allowance (Lifetime ECLs) (2,241) (54) Amortized cost $ 220,968 $ 5,296 March 31, 2023 Not Past Due 1 to 60 Days Past Due Expected credit loss rate 1% 1.05%-2.82% Gross carrying amount $ 262,779 $ 7,867 Loss allowance (Lifetime ECLs) (2,659) (84) Amortized cost $ 260,120 $ 7,783	61 to 90 Days Past Due - $ - - $ - 61 to 90 Days Past Due 1.7% $ 4 - $ 4 61 to 90 Days Past Due - $ - - $ -	91 to 120 Days Past Due - $ - - $ - 91 to 120 Days Past Due - $ - - $ - 91 to 120 Days Past Due - $ - - $ -	Over 120 Days Past Due - $ - - $ - Over 120 Days Past Due - $ - - $ - Over 120 Days Past Due - $ - - $ -	Total $ 305,214 (3,061) $ 302,153 Total $ 228,563 (2,295) $ 226,268 Total $ 270,646 (2,743) $ 267,903

The movements of the loss allowance of accounts receivable were as follows:

Balance at January 1 Add: Provision Balance at March 31	For the Three Months Ended March 31 2024 2023 $ 2,295 $ 2,146 766 597 $ 3,061 $ 2,743	For the Three Months Ended March 31 2024 2023 $ 2,295 $ 2,146 766 597 $ 3,061 $ 2,743	For the Three Months Ended March 31 2024 2023 $ 2,295 $ 2,146 766 597 $ 3,061 $ 2,743
		2024 $ 2,295 766 $ 3,061	2023 $ 2,146 597 $ 2,743

16 -

c. Other receivables

The Group measures the loss allowance for other receivables at an amount equal to lifetime ECLs. The Group estimates the loss allowance by reference to the past default records of the customer and the customer’s current financial position and uses other publicly available financial information or its own trading records to rate the default risk of different receivables. As of March 31, 2024, December 31, 2023 and March 31, 2023, the management of the Group assessed other receivables with no expected credit losses.

9. INVENTORIES

			December 31,	December 31,
	March 31, 2024			2023	March 31, 2023
Commodities	$	67,334	$	66,589	$	66,521
Finished goods		88,131		102,502		72,503
Packaging materials		43,654		35,337		35,783
Raw materials		43,824		40,989		38,482
Work in progress		10,925		12,494		7,570
	$	253,868	$	257,911	$	220,859

The nature of the cost of goods sold is as follows:

Cost of inventories sold Inventory obsolescence loss Loss on physical inventory	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2024 $ 136,727 1,115 - $ 137,842	2023 $ 117,186 1,373 105 $ 118,664

10. OTHER FINANCIAL ASSETS - CURRENT

		December 31,
	March 31, 2024	2023	March 31, 2023
Time deposits with original maturities of more
than 3 months	$ 465,470	$ 395,130	$ 381,370

The market intervals of time deposits with original maturities of more than 3 months in the bank at the end of the reporting period were as follows:

		December 31,
	March 31, 2024	2023	March 31, 2023
Time deposits	1.285%-1.690%	1.160%-1.565%	1.150%-1.565%

17 -

11. SUBSIDIARIES

Subsidiaries Included in the Consolidated Financial Statements

Investor Investee Nature of Activities Maywufa Company Ltd. Maywufa Corporation (Samoa Maywufa) Investment Holdings Maywufa Corporation (Samoa Maywufa) Maywufa Hongkong Corporation Limited (Hong Kong Maywufa) Investment Holdings Maywufa Hongkong Corporation Limited (Hong Kong Maywufa) Maywufa Cosmetics (Shanghai) Co., Ltd. (Maywufa (Shanghai) Company) Cosmetics and household goods wholesale	Percentage of Ownership (%)
	March 31, 2024 December 31, 2023 March 31, 2023 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

Investor
Investee
Nature of Activities
Maywufa Company Ltd.
Maywufa Corporation
(Samoa Maywufa)
Investment Holdings
Maywufa Corporation (Samoa
Maywufa)
Maywufa Hongkong
Corporation Limited
(Hong Kong Maywufa)
Investment Holdings
Maywufa Hongkong Corporation
Limited (Hong Kong
Maywufa)
Maywufa Cosmetics
(Shanghai) Co., Ltd.
(Maywufa (Shanghai)
Company)
Cosmetics and household
goods wholesale

Percentage of Ownership (%)

March 31,
2024
December 31,
2023
March 31,
2023
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00

The main business risks of Samoa Maywufa and its subsidiaries are political risk and exchange rate risk due to changes in government regulations and cross-strait relations.

12. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

			December 31,	December 31,
	March 31, 2024			2023	March 31, 2023
Non-current
Domestic investments
Listed shares	$	45,459	$	42,524	$	37,228
Unlisted shares		77,644		77,966		79,272
Foreign investments
Unlisted shares		6,822		6,615		6,599
	$	129,925	$	127,105	$	123,099

Refer to Note 34 and Table 1 (Marketable Securities Held) for information relating to the investments in the table above.

Refer to Note 21(e) for information relating to financial assets at fair value through other comprehensive income.

These investments in equity instruments are held for strategic purposes. Accordingly, the management elected to designate these investments in equity instruments as at FVTOCI as they believe that recognizing short-term fluctuations in these investments’ fair value in profit or loss would not be consistent with the Group’s strategy of holding these investments for long-term purposes.

18 -

13. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

		December 31,
	March 31, 2024	2023	March 31, 2023
Listed company
PhytoHealth Corporation	$ 466,279	$ 457,071	$ 454,039
AmCad BioMed Corporation	23,780	24,811	27,148
Unlisted company
Broadsound Corporation	22,835	23,324	22,788
Lu Te Na Company Limited	2,369	2,355	2,388
	$ 515,263	$ 507,561	$ 506,363

The Group’s percentage of ownership and voting rights in associates as of the balance sheet date were as follows:

		December 31,
Name of Company	March 31, 2024	2023	March 31, 2023
PhytoHealth Corporation	17.69%	17.69%	17.69%
AmCad BioMed Corporation	6.52%	6.52%	6.53%
Broadsound Corporation	10.00%	10.00%	10.00%
Lu Te Na Company Limited	35.00%	35.00%	35.00%

The Group holds less than 20% of the shares of PhytoHealth Corporation, AmCad BioMed Corporation, and Broadsound Corporation, but obtained some of the seats of directors of these companies; therefore, it has significant influence over these companies, which are all accounted for using the equity method.

Refer to Note 34 and Table 2 of the notes to financial statements for more information on the investees.

For the three months ended March 31, 2024 and 2023, the Group’s share of profit or loss in investments in associates accounted for using the equity method was as follows:

PhytoHealth Corporation AmCad BioMed Corporation Broadsound Corporation Lu Te Na Company Limited	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2024 $ (4,849) (1,019) (489) 14 $ (6,343)	2023 $ (1,876) (691) (309) 11 $ (2,865)

The Group recognized an increase of $76 thousand and $7 thousand in capital surplus for the changes in other equity of the associates in proportion to its shareholding as of March 31, 2024 and 2023, respectively.

As a result of the change in paid-in capital due to the exercise of employee stock options issued by the AmCad BioMed Corporation for the three months ended March 31, 2024, the Group’s shareholding in AmCad BioMed Corporation was reduced to 6.52%, which resulted in a change in the net value of the Group’s investment in the Company’s net assets, and the capital surplus should be adjusted for an increase of $1 thousand.

19 -

The Group recognized $2,271 thousand of equity instruments measured at fair value through other comprehensive income for the three months ended March 31, 2023, based on the percentage of ownership of the associates, and the related other equity - unrealized gain was transferred to retained earnings.

Share of the other comprehensive income (loss) of associates accounted for using the equity method is recognized based on the financial statements of each associate reviewed by accountants for the same period.

The information on the Group’s associates is summarized as follows:

The Group’s share of: Loss from continuing operations Other comprehensive income (loss) Total comprehensive income (loss) for the period	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2024 $ (6,343) 13,970 $ 7,627	2023 $ (2,865) 1,210 $ (1,655)

Information on the level 1 fair value of related companies with open market quotations is as follows:

		December 31,	December 31,
	March 31, 2024		2023	March 31, 2023
PhytoHealth Corporation	$ 723,692	$	762,336	$	662,214
AmCad BioMed Corporation	$ 102,477	$	92,750	$	55,233

14. PROPERTY, PLANT AND EQUIPMENT

Assets Used by the Group

Cost Balance at January 1, 2024 Additions Reclassification (Note) Effects of foreign currency exchange differences Balance at March 31, 2024 Accumulated depreciation and impairment Balance at January 1, 2024 Depreciation expenses Effects of foreign currency exchange differences Balance at March 31, 2024 Carrying amount at March 31, 2024 Cost Balance at January 1, 2023 Additions Effects of foreign currency exchange differences Balance at March 31, 2023	Land $ 293,932 - - - $ 293,932 $ - - - $ - $ 293,932 $ 293,932 - - $ 293,932	Buildings Machinery and Equipment $ 389,928 $ 51,767 609 143 - 95 2,293 - $ 392,830 $ 52,005 $ (213,815) $ (38,498) (3,543) (1,050) (1,119) - $ (218,477) $ (39,548) $ 174,353 $ 12,457 $ 389,364 $ 49,270 - - 651 - $ 390,015 $ 49,270	Income- generating Equipment $ 2,515 284 - 1 $ 2,800 $ (1,776) (110) (1) $ (1,887) $ 913 $ 2,517 - - $ 2,517	Other Equipment C $ 2,181 1,635 - - $ 3,816 $ (2,156) (67) - $ (2,223) $ 1,593 $ 2,181 - - $ 2,181	onstruction in Progress Total $ 472,125 $ 1,212,448 58,333 61,004 - 95 - 2,294 $ 530,458 $ 1,275,841 $ - $ (256,245) - (4,770) - (1,120) $ $ (262,135) $ 530,458 $ 1,013,706 $ 225,920 $ 963,184 80,469 80,469 - 651 $ 306,389 $ 1,044,304 (Continued)

20 -

Accumulated depreciation and impairment Balance at January 1, 2023 Depreciation expenses Effects of foreign currency exchange differences Balance at March 31, 2023 Carrying amount at December 31, 2022 and January 1, 2023 Carrying amount at March 31, 2023	Land $ - - - $ - $ 293,932 $ 293,932	Buildings Machinery and Equipment $ (200,562) $ (34,147) (3,618) (1,122) (283) - $ (204,463) $ (35,269) $ 188,802 $ 15,123 $ 185,552 $ 14,001	Income- generating Equipment $ (1,354) (111) - $ (1,465) $ 1,163 $ 1,052	Other Equipment C $ (2,073) (38) - $ (2,111) $ 108 $ 70	onstruction in Progress Total $ - $ (238,136) - (4,889) - (283) $ - $ (243,308) $ 225,920 $ 725,048 $ 306,389 $ 800,996 (Concluded)

Note: The reclassification is transferred from the prepayments for equipment.

In response to the Company’s operational development, the Group’s board of directors approved on May 12, 2021 to build a GMP factory on its own land in the Yangmei factory area. The contract was signed with the construction company on February 10, 2022 for a total contract amount of $699,300 thousand. In addition, on November 8, 2023, after considering the changes in project costs and other factors, it was proposed to increase the budget for the construction of the plant as necessary, which was approved by the board of directors.

There was no indication that property, plant and equipment was impaired, so the Group did not perform an impairment test for the three months ended March 31, 2024 and 2023.

Property, plant and equipment of the Group are depreciated on a straight-line basis over their estimated useful lives as follows:

Buildings
Main building	20-60 years
Mechanical and electrical engineering	3-20 years
Decoration engineering	3-15 years
Machinery equipment	5-15 years
Income-generating equipment	2-5 years
Other equipment	2-5 years

The property and plant pledged as collateral for bank borrowings are set out in Note 30.

15. LEASE ARRANGEMENTS

a. Right-of-use assets

			December 31,	December 31,
	March	31, 2024		2023	March	31, 2023
Carrying amount
Buildings	$	1,079	$	2,698	$	4,786
Transportation equipment		1,499		1,890		1,580
	$	2,578	$	4,588	$	6,366

21 -

Depreciation charge for right-of-use assets Buildings Transportation equipment	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2024 $ 1,619 391 $ 2,010	2023 $ 1,596 442 $ 2,038

Except for the aforementioned addition and recognized depreciation, the Group did not have significant sublease or impairment of right-of-use assets for the three months ended March 31, 2024 and 2023.

b. Lease liabilities

			December 31,	December 31,
	March	31, 2024		2023	March	31, 2023
Carrying amounts
Current	$	1,689	$	3,564	$	6,517
Non-current	$	944	$	1,084	$	-

Range of discount rates for lease liabilities was as follows:

		December 31,
	March 31, 2024	2023	March 31, 2023
Buildings	1.079%-1.569%	1.079%-1.569%	1.596%
Transportation equipment	1.079%-1.569%	1.079%-1.569%	1.596%

c. Material leasing activities and terms

The Group leases buildings for operating purposes for a period of 2.75 years.

The Group leases transportation equipment for general operating activities for a period of 3 to 5 years.

At the end of the lease term, the Group does not have bargain purchase options to acquire the above lease subjects.

d. Other lease information

Expenses relating to short-term leases Expenses relating to low-value asset leases Total cash outflow for leases	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2024 $ 692 $ 87 $ (2,805)	2023 $ 235 $ 87 $ (2,403)

The Group elected to apply the exemption from recognition to certain leases of office equipment that qualify as short-term leases of buildings and construction and that qualify as low-value leases of assets, and not to recognize the related right-of-use assets and lease liabilities for these leases.

22 -

16. OTHER ASSETS

17.

March 31, 2024
December 31,
2023
March 31, 2023
Current
Temporary payments
$ 3,161
$ 1,576
$ 1,374
Non-current
Prepayments for equipment
$ 59,202
$ 54,646
$ 27,350
BORROWINGS
a. Short-term borrowings
March 31, 2024
December 31,
2023
March 31, 2023
Unsecured borrowings
Line of credit borrowings
$ 35,000
$ -
$ -
The effective interest rates for bank loans were 0.50% as at March 31, 2024.
b. Long-term borrowings
March 31, 2024
December 31,
2023
March 31, 2023
Secured borrowings (Note 30)
Bank loans
$ 485,657
$ 437,893
$ 251,751

Bank loan’s floating rates of the bank loans, which the Group used to build a factory, are calculated monthly on the balance of the principal, with interest paid monthly for the first 66 months and the principal repayable in equal monthly installments from the 67th month (February 2028) onward, at an effective interest rate of 0.68% to 1.21% per annum, and the loan period is eight years. The Group used the loan to build a factory.

18. NOTES PAYABLE AND ACCOUNTS PAYABLE

			December 31,	December 31,
	March 31, 2024			2023	March 31, 2023
Notes payable
Operating	$	474	$	125	$	15
Accounts payable
Operating	$	73,283	$	59,329	$	55,542
Related parties (Note 29)		25,728		24,185		23,841
	$	99,011	$	83,514	$	79,383

23 -

Accounts Payable

The Group has a financial risk management policy to ensure that all accounts payable are repaid within the prearranged credit period, which ranges from one to six months.

19. OTHER PAYABLES

			December 31,	December 31,
	March 31, 2024			2023	March 31, 2023
Payables for promotion fee	$	84,935	$	69,002	$	64,606
Payables for advertising fee		66,126		49,362		54,358
Payables for salaries and bonuses		36,621		50,639		31,982
Payables for construction		-		-		41,958
Others		38,518		46,570		25,308
	$	226,200	$	215,573	$	218,212

20. RETIREMENT BENEFIT PLANS

The pension expenses of the defined benefit plan were calculated based on the actuarially determined pension cost rate on December 31, 2023 and 2022. An analysis by function of the pension expense was as follows:

Operating expenses EQUITY a. Share capital Ordinary shares March 31, 2024 Shares authorized (in thousands of shares) 300,000 Shares authorized $ 3,000,000 Shares issued and fully paid (in thousands of shares) 132,915 Shares issued and fully paid $ 1,329,152		March 31
	2024 2023 $ (91) $ - December 31, 2023 March 31, 2023 300,000 300,000 $ 3,000,000 $ 3,000,000 132,915 132,915 $ 1,329,152 $ 1,329,152

21. EQUITY

24 -

b. Capital surplus

		December 31,
	March 31, 2024	2023	March 31, 2023
May be used to offset a deficit, distributed as
cash dividends, or transferred to share
capital (Note 1)
Issuance of ordinary shares	$ 161,940	$ 161,940	$ 161,940
May only be used to offset a deficit
Share of changes in capital surplus of
associates	26,380	26,305	26,109
Dividends unclaimed by shareholders
(Note 2)	1,075	1,075	-
	$ 189,395	$ 189,320	$ 188,049

Note 1: Such capital surplus may be used to offset a deficit; in addition, when the Company has no deficit, such capital surplus may be distributed as cash dividends or transferred to share capital (limited to a certain percentage of the Company’s capital surplus and once a year).
Note 2: According to the letter Jingshangzi No. 10602420200 issued by the Ministry of Economic Affairs on September 21, 2017, unclaimed dividends should be recognized as capital reserves.

A reconciliation of the carrying amount at the beginning and at the end of the three months ended March 31, 2024 and 2023 for each class of capital surplus was as follows:

Issuance of Ordinary Shares Changes in Capital Surplus from Investment in Associates Accounted for Using the Equity Method Dividends Unclaimed by Shareholders Balance at January 1, 2024 $ 161,940 $ 26,305 $ 1,075 Changes in capital surplus from investments in associates accounted for using the equity method - 75 - Balance at March 31, 2024 $ 161,940 $ 26,380 $ 1,075 Balance at January 1, 2023 $ 161,940 $ 26,102 $ - Changes in capital surplus from investments in associates accounted for using the equity method - 7 - Balance at March 31, 2023 $ 161,940 $ 26,109 $ -	Total $ 189,320 75
	$ 189,394
	$ 188,042 7
	$ 188,049

25 -

c. Retained earnings and dividends policy

Under the dividends policy as set forth in the Articles, where the Company made a profit in a fiscal year, the profit shall be first utilized for paying taxes, offsetting losses of previous years, setting aside as legal reserve 10% of the remaining profit, setting aside or reversing a special reserve in accordance with the laws and regulations, and then any remaining profit together with any undistributed retained earnings at least used 50% by the Company’s board of directors as the basis for proposing a distribution plan, which should be resolved in the shareholders’ meeting for the distribution of dividends and bonuses to shareholders. For the policies on the distribution of compensation of employees and remuneration of directors after the amendment, refer to compensation of employees and remuneration of directors in Note 23 (g).

Appropriation of earnings to the legal reserve shall be made until the legal reserve equals the Company’s paid-in capital. The legal reserve may be used to offset deficits. If the Company has no deficit and the legal reserve has exceeded 25% of the Company’s paid-in capital, the excess may be transferred to capital or distributed in cash.

When the Company makes a provision for the special surplus reserve for the net reduction of other benefits accumulated in the previous period, it only makes a provision for the undistributed surplus of the previous period.

The appropriations of earnings for 2023 that were proposed by the board of directors on February 27, 2024 and the appropriations of earnings for 2022 that were resolved by the shareholders in their meeting on May 26, 2023 were as follows:

Legal reserve (Reversal) Special reserve Cash dividends Cash dividends per share (NT$)	Appropriation of Earnings	Appropriation of Earnings	Appropriation of Earnings
	For the Year Ended		December 31
		2023 $ 16,875 $ (16,341) $ 152,853 $ 1.15	2022 $ 19,332 $ 46,805 $ 146,207 $ 1.10

The appropriation of earnings for 2023 is subject to the resolution of the shareholders in their meeting to be held on May 29, 2024.

d. Special reserve

The cumulative translation adjustment transferred to retained earnings was $8,874 thousand when the Company initially adopted IFRSs. The increase in retained earnings from the initial adoption of IFRSs was not enough to provide for the increase in retained earnings, so only a special reserve of $1,875 thousand was provided for the increase in retained earnings from the conversion to IFRSs.

26 -

e. Other equity items

			December 31,	December 31,
	March 31, 2024			2023	March 31, 2023
Exchange differences on translation of
financial statements of foreign operations
Attributable to the Company	$	(15,455)	$	(18,070)	$	(14,677)
Unrealized valuation gain (loss) on financial
assets at FVTOCI
Attributable to the Company		(91,388)		(94,208)		(100,011)
Share from associates accounted for using
the equity method		36,427		22,457		12,099
		(54,961)		(71,751)		(87,912)
	$	(70,416)	$	(89,821)	$	(102,589)

1) Exchange differences on translation of financial statements of foreign operations

Translation differences arising from the translation of the net assets of foreign operations from their functional currency into the Company’s presentation currency (i.e., New Taiwan dollars) are recognized directly in other comprehensive income as translation differences in the financial statements of foreign operations. The cumulative translation differences on the financial statements of foreign operations are transferred to profit or loss upon disposal of the foreign operations.

For the Three Months Ended March 31 2024 2023 Balance at January 1 $ (18,070) $ (15,440) Recognized for the period Exchange differences on translation of financial statements of foreign operations 2,615 763 Other comprehensive income recognized for the period 2,615 763 Balance at March 31 $ (15,455) $ (14,677) Unrealized valuation gain (loss) on financial assets at FVTOCI For the Three Months Ended March 31 2024 2023 Balance at January 1 $ (71,751) $ (90,722) Recognized for the period Unrealized gain (loss) - equity instruments 2,820 3,871 Share from associates accounted for using the equity method 13,970 1,210 Other comprehensive income 16,790 5,081 Cumulative unrealized gain (loss) of equity instruments transferred to retained earnings due to disposal - (2,271) Balance at March 31 $ (54,961) $ (87,912)	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2024 $ (71,751) 2,820 13,970 16,790 - $ (54,961)	2023 $ (90,722) 3,871 1,210 5,081 (2,271) $ (87,912)

2) Unrealized valuation gain (loss) on financial assets at FVTOCI
27 -

Please refer to Note 28 (b) for the reconciliation of the Level 3 fair value measurements of financial assets at fair value through other comprehensive income.

22. REVENUE

Revenue from contracts with customers Revenue from the sale of goods Consumer business unit Pharmaceutical business unit	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2024 $ 295,471 112,230 $ 407,701	2023 $ 244,750 100,224 $ 344,974

Revenue from sale of goods

The Group’s sales come from various channels, such as e-commerce, medical institutions, wholesalers and retailers, and discounts are granted to different sales targets on different terms. Revenue is measured at the fair value of the consideration received or receivable, less estimated customer returns, discounts and other similar discounts.

Contract balances

Notes receivable (Note 8) Accounts receivable (Note 8)	March 31, 2024 December 31, 2023 $ 23,518 $ 22,522 $ 302,153 $ 226,268	March 31, 2023 $ 24,212 $ 267,903	January 1, 2023 $ 22,025
			$ 205,802

23. NET PROFIT

a. Interest income

Bank deposits b. Other income Rental income Other income	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
	2024 2023 $ 1,818 $ 1,683 For the Three Months Ended March 31
		2024 $ 2,786 187 $ 2,973	2023 $ 2,714 308 $ 3,022

28 -

c. Other gains and losses

Fair value changes of financial assets Financial assets mandatorily classified as at FVTPL Net foreign exchange gains	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2024 $ 11 293 $ 304	2023 $ 73 264 $ 337

d. Interest expense

Interest on bank loans Interest on lease liabilities Less: Capitalized interest	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2024 $ 1,246 11 (1,246) $ 11	2023 $ 548 31 (548) $ 31

Information on capitalized interest was as follows:

Capitalized interest amount Capitalization rate e. Depreciation and amortization expense An analysis of depreciation by function Operating costs Operating expenses An analysis of amortization by function Operating costs Operating expenses	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
	2024 2023 $ 1,246 $ 548 0.68%-1.21% 0.68%-1.08% For the Three Months Ended March 31
		2024 $ 3,667 3,113 $ 6,780 $ 218 218 $ 436	2023 $ 3,735 3,192 $ 6,927 $ 152 229 $ 381

29 -

f. Employee benefits expense

Post-employment benefits (Note 20) Defined contribution plan Defined benefit plans Other employee benefits Salaries and bonuses Labor and health insurance Others Total employee benefits expense An analysis of employee benefits expense by function Operating expenses Operating costs	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2024 $ 1,972 (91) 46,944 4,300 1,664 $ 54,789 $ 43,602 11,187 $ 54,789	2023 $ 1,604 - 40,817 3,725 1,595 $ 47,741 $ 37,921 9,820 $ 47,741

g. Compensation of employees and remuneration of directors

According to the Company’s Articles, the Company accrues compensation of employees and remuneration of directors at rates of 3%-6% and no higher than 4%, respectively, of net profit before income tax, compensation of employees, and remuneration of directors. The compensation of employees and the remuneration of directors for the three months ended March 31, 2024 and 2023 are as follows:

Accrual rate

Compensation of employees Remuneration of directors Amount	For the Three Months Ended March 31
	2024 2023 3% 3% 2% 2%

Compensation of employees Remuneration of directors	For the Three Months Ended March 31	For the Three Months Ended March 31
	2024 Cash $ 2,262 1,508	2023
		Cash $ 2,122 1,415

If there is a change in the amounts after the annual consolidated financial statements are authorized for issue, the differences are recorded as a change in the accounting estimate.

30 -

The appropriations of employees’ compensation and remuneration of directors for 2023 and 2022 that were resolved by the board of directors on February 27, 2024 and February 24, 2023, respectively, are as shown below:

Compensation of employees Remuneration of directors	2023 Cash $ 6,639 4,426	2022
		Cash $ 6,580 4,386

There is no difference between the actual amounts of compensation of employees and remuneration of directors paid and the amounts recognized in the consolidated financial statements for the years ended December 31, 2023 and 2022.

Information on compensation of employees and remuneration of directors resolved by the Company’s board of directors is available at the Market Observation Post System website of the Taiwan Stock Exchange.

h. Gains or losses on foreign currency exchange

Foreign exchange gains Foreign exchange losses Net gains	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2024 $ 360 (67) $ 293	2023 $ 356 (92) $ 264

24. INCOME TAXES RELATING

a. Income tax recognized in profit or loss

Major components of income tax expense (benefit) are as follows:

Current tax In respect of the current period Adjustments for prior year Deferred tax In respect of the current period Income tax expense recognized in profit or loss	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2024 $ 23,544 (2,225) (7,516) $ 13,803	2023 $ 17,743 - (3,210) $ 14,533

b. Income tax assessment

The income tax returns through 2022 have been assessed by the tax authorities; there is no difference between the amount of approved and declared tax.

31 -

25. EARNINGS PER SHARE

The earnings and weighted average number of ordinary shares outstanding used in the computation of earnings per share were as follows:

Net Profit for the Period

Net profit attributable to owners of the Company Shares	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2024 $ 57,835	2023 $ 52,673

Weighted average number of ordinary shares used in the computation of basic earnings per share Effect of potentially dilutive ordinary shares Compensation of employees Weighted average number of ordinary shares used in the computation of diluted earnings per share	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2024 132,915 255 133,170	2023 132,915 164 133,079

The Group may settle the compensation of employees in cash or shares; therefore, the Group assumes that the entire amount of the compensation will be settled in shares, and the resulting potential shares will be included in the weighted average number of shares outstanding used in the computation of diluted earnings per share, as the effect is dilutive. Such dilutive effect of the potential shares is included in the computation of diluted earnings per share until the number of shares to be distributed to employees is resolved in the following year.

26. CASH FLOW INFORMATION

a. Non-cash transactions

In addition to those disclosed in other notes, the Group entered into the following non-cash investing activities, which were not reflected in the consolidated statements of cash flows for the three months ended March 31, 2024 and 2023:

As of March 31, 2023, the unpaid amount for acquiring property, plant and equipment was $41,958 thousand, which was recognized in other payables (refer to Note 19).

32 -
b. Changes in liabilities from financing activities

For the three months ended March 31, 2024

Opening Balance Cash Flows Short-term borrowings $ - $ 35,000 Long-term borrowings 437,893 47,764 Lease liabilities 4,648 (2,015) Guarantee deposits 1,945 - $ 444,486 $ 80,749 For the three months ended March 31, 2023 Opening Balance Cash Flows Long-term borrowings $ 218,185 $ 33,566 Lease liabilities 8,567 (2,050) Guarantee deposits 1,893 (104) $ 228,645 $ 31,412	Non-cash Changes Amortization of Interest Others $ - $ - - - 11 (11) - - $ 11 $ (11) Non-cash Changes Amortization of Interest Others $ - $ - 31 (31) - - $ 31 $ (31)	Closing Balance $ 35,000 485,657 2,633 1,945
		$ 525,235
		Closing Balance $ 251,751 6,517 1,789
Long-term borrowings Lease liabilities Guarantee deposits
	Amortization of Interest $ - 31 - $ 31
		$ 260,057

27. CAPITAL RISK MANAGEMENT

The objective of the Group’s capital management is to ensure that the companies in the Group can continue to operate, and maximize shareholder returns by optimizing the balance of debt and equity.

The capital structure of the Group consists of net debt (borrowings offset by cash and cash equivalents) and equity attributable to owners of the Company (comprising issued capital, reserves, retained earnings and other equity).

28. FINANCIAL INSTRUMENTS

a. Fair value of financial instruments not measured at fair value

Among the financial assets and financial liabilities not measured at fair value, there is no material difference between the carrying amount and the fair value.

33 -
b. Fair value of financial instruments measured at fair value on a recurring basis
1) Fair value hierarchy

March 31, 2024 Financial assets at FVTOCI Investments in equity instruments at FVTOCI Domestic listed shares Domestic unlisted shares Foreign unlisted shares December 31, 2023 Financial assets at FVTOCI Investments in equity instruments at FVTOCI Domestic listed shares Domestic unlisted shares Foreign unlisted shares March 31, 2023 Financial assets at FVTPL Mutual funds Financial assets at FVTOCI Investments in equity instruments at FVTOCI Domestic listed shares Domestic unlisted shares Foreign unlisted shares	Level 1 $ 45,459 - - $ 45,459 Level 1 $ 42,524 - - $ 42,524 Level 1 $ 30,033 $ 37,228 - - $ 37,228	Level 2 $ - - - $ - Level 2 $ - - - $ - Level 2 $ - $ - - - $ -	Level 3 $ - 77,644 6,822 $ 84,466 Level 3 $ - 77,966 6,615 $ 84,581 Level 3 $ - $ - 79,272 6,599 $ 85,871	Total $ 45,459 77,644 6,822
				$ 129,925
				Total $ 42,524 77,966 6,615
				$ 127,105
				Total $ 30,033
				$ 37,228 79,272 6,599
				$ 123,099

There was no transfer between Level 1 and Level 2 for the three months ended March 31, 2024 and 2023.

34 -
2) Reconciliation of Level 3 fair value measurements of financial instruments

Financial assets at FVTOCI - equity instruments

Balance at January 1 Recognized in other comprehensive income (included in unrealized valuation gain/(loss) on financial assets at FVTOCI) Balance at March 31	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2024 $ 84,581 (115) $ 84,466	2023 $ 82,963 2,908 $ 85,871

3) Level 3 valuation techniques and inputs for measuring fair value

Investments in domestic unlisted equity is calculated by the market approach or asset approach, and the fair value of the investment target is calculated.

In the market approach, the fair value of the investment target is determined based on the transaction price of the stock of companies engaged in similar businesses in the active market, the value multiplier implied by the price, and the discount for lack of marketability.

In the asset approach, the market value of individual assets and liabilities covered by the investment target is used to reflect the value of the business or activities.

c. Categories of financial instruments

			December	31,
	March 31, 2024		2023		March 31, 2023
Financial assets
FVTPL
Mandatorily classified as at FVTPL	$	-	$	-	$	30,033
Financial assets at amortized cost (Note 1)		966,857	830,664			865,048
Financial assets recognized at FVTOCI
Equity instruments		129,925	127,105			123,099
Financial liabilities
Financial liabilities at amortized cost (Note 2)		811,666	688,411			519,168

Note 1: The balances include financial assets at amortized cost, which comprise cash and cash equivalents, notes receivable, accounts receivable, other receivables, other financial assets and refundable deposits.
Note 2: The balances include financial liabilities at amortized cost, which comprise notes payable, accounts payable, other payables (excluding salaries and bonuses payable), Short-term borrowings, long-term borrowings and guarantee deposits.
35 -
d. Financial risk management objectives and policies

The Group’s major financial instruments include equity investments, accounts receivable, other financial assets, accounts payable, borrowings and lease liabilities. The Group’s corporate treasury function provides services to the business, coordinates access to domestic and international financial markets, and monitors and manages the financial risks relating to the operations of the Group through internal risk reports that analyze exposures by degree and magnitude of risks. These risks include market risk (including foreign currency risk, interest rate risk and other price risk), credit risk and liquidity.

1) Market risk

The Group’s activities exposed it primarily to the financial risks of changes in foreign currency exchange rates and interest rates.

There had been no change to the Group’s exposure to market risks or the manner in which these risks were managed and measured.

a) Foreign currency risk

The carrying amounts of the Group’s foreign currency denominated monetary assets and monetary liabilities at the end of the reporting period are set out in Note 33.

Sensitivity analysis

The Group is mainly exposed to the USD, EUR and JPY

The following table details the Group’s sensitivity to a 5% increase or decrease in the New Taiwan dollar (the functional currency) against the relevant foreign currencies. The sensitivity rate used when reporting foreign currency risk internally to key management personnel and representing management’s assessment of the reasonably possible change in foreign exchange rates is 5%. For a 5% weakening of the New Taiwan dollar against the relevant currency, there would be an equal and opposite impact on pre-tax profit and other equity, and the balances below would be negative (positive).

Profit or loss	USD Impact For the Three Months Ended March 31 2024 2023 $ 77 $ (27)	EUR Impact For the Three Months Ended March 31 2024 2023 $ 425 $ 107	JPY Impact
			For the Three Months Ended March 31
			2024 2023 $ 1 $ -

The above effects of profit and loss were mainly derived from the Group’s foreign currency deposits, accounts receivable and accounts payable valued in the USD, EUR and JPY which were still circulating at the balance sheet date.

The significant change in the sensitivity to exchange rates during the current period compared to the same period last year was mainly due to the change in accounts payable.

36 -

b) Interest rate risk

The carrying amounts of the Group’s financial assets and financial liabilities with exposure to interest rates at the end of the reporting period were as follows:

		December 31,	December 31,
	March 31, 2024		2023	March 31, 2023
Fair value interest rate risk
Financial assets	$ 170,664	$	46,000	$	75,055
Financial liabilities	2,633		4,648		6,517
Cash flow interest rate risk
Financial assets	461,242		527,443		489,618
Financial liabilities	520,657		437,893		251,751

Sensitivity analysis

The sensitivity analysis below was determined based on the Group’s exposure to interest rates for both derivative and non-derivative instruments at the end of the year. For floating rate liabilities, the analysis was prepared assuming the amount of each liability outstanding at the end of the year was outstanding for the whole year. A 12.5 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates.

If interest rates had been 12.5 basis points higher/lower and all other variables were held constant, the Group’s pre-tax profit for the three months ended March 31, 2024 and 2023 would have decreased/increased by $(19) thousand and $74 thousand, respectively, which was mainly a result of bank deposits and long-term borrowings.

The Group’s sensitivity to interest rates decreased during the current year mainly due to the increase in short-term bank loans and long-term bank loans.

c) Other price risk

The Group was exposed to equity price risk through its investments in listed or unlisted equity securities.

Sensitivity analysis

The sensitivity analysis below was determined based on the exposure to equity price risks at the end of the period.

If equity prices had been 5% higher/lower, pre-tax other comprehensive income for the three months ended March 31, 2024 and 2023 would have increased/decreased by $6,496 thousand and $6,155 thousand, respectively, as a result of the changes in fair value of financial assets at FVTOCI.

The Group's sensitivity to price risk increased during the current period because of the increase in equity securities held by the Group.

37 -

2) Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in a financial loss to the Group. As the end of the year, the Group’s maximum exposure to credit risk, which would cause a financial loss to the Group due to the failure of counterparties to discharge an obligation and due to financial guarantee provided by the Group, could be equal to the total of the carrying amount of the respective recognized financial assets as stated in the balance sheet.

The Group adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults.

The Group’s accounts receivable cover a wide range of customers in different industries and geographical areas; therefore, the Group does not have significant credit risk to any single counterparty or any group of counterparties with similar characteristics.

3) Liquidity risk

The Group manages liquidity risk by monitoring and maintaining a level of cash and cash equivalents deemed adequate to finance the Group’s operations and mitigate the effects of fluctuations in cash flows.

The Group’s remaining contractual maturities for its non-derivative financial liabilities with agreed upon repayment periods that have been drawn up based on the undiscounted cash flows of financial liabilities from the earliest date on which the Group can be required to pay include both interest and principal cash flows. Specifically, bank loans with a repayment on demand clause were included in the earliest time band regardless of the probability of the banks choosing to exercise their rights. The maturity dates for other non-derivative financial liabilities were based on the agreed upon repayment dates.

March 31, 2024

Non-derivative financial liabilities Non-interest bearing Lease liabilities Variable interest rate liabilities	Within 3 Months 3 Months to 1 Year $ 288,790 $ 280 1,275 429 1,470 2,940 $ 291,535 $ 3,649	1-5 Years $ 1,945 952 76,586 $ 79,483	5+ Years $ - - 446,139
			$ 446,139

38 -

December 31, 2023

Non-derivative
financial liabilities
Non-interest bearing
Lease liabilities
Variable interest rate liabilities

March 31, 2023
Non-derivative
financial liabilities
Non-interest bearing
Lease liabilities
Variable interest rate liabilities

Financing facilities
Unsecured bank facilities (reviewed
annually)
Amount used
Amount unused
Secured bank facilities
Amount used
Amount unused

Within
3 Months
3 Months to
1 Year
1-5 Years
5+ Years
$ 248,573
$ -
$ 1,945
$ -
2,074
1,513
1,095
-
1,181
3,542
204,622
266,046
$ 251,828
$ 5,055
$ 207,662
$ 266,046
Within
3 Months
3 Months to
1 Year
1-5 Years
5+ Years
$ 265,287
$ 341
$ 1,789
$ -
2,110
4,453
-
-
596
2,036
15,120
257,161
$ 267,993
$ 6,830
$ 16,909
$ 257,161
March 31, 2024
December 31,
2023
March 31, 2023
$ 35,000
$ -
$ -
-
-
-
$ 35,000
$ -
$ -
$ 485,657
$ 437,893
$ 251,751
200,343
248,107
434,249
$ 686,000
$ 686,000
$ 686,000

39 -

29. TRANSACTIONS WITH RELATED PARTIES

a. Related parties

Related Party Name Related Party Category PhytoHealth Corporation Investments accounted for using the equity method (associate) AmCad BioMed Corporation Investments accounted for using the equity method (associate) Broadsound Corporation Investments accounted for using the equity method (associate) Lu Te Na a Limited Investments accounted for using the equity method (associate) Taiwan Incubator SME Development The chairman is the same as the company (other related Corp. parties)

b. Besides information disclosed elsewhere in the other notes, details of transactions between the Group and other related parties are disclosed as follows:
1) Operating Transactions

Line Item Related Party Category Operating revenue Associates Other related parties	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2024 $ 1,267 $ 5	2023 $ 1,225 $ 2

The Group had signed a contract with PhytoHealth Corporation to sell its products. The Group is responsible for sell its promotion business of medicine and health care products. According to the terms of the contract, service will be charged monthly.

Line Item Related Party Category/Name Operating costs Purchases of goods PhytoHealth Corporation Other operation costs - associates	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2024 $ 24,498 $ 4	2023 $ 22,425 $ 281

The Group had signed a contract with PhytoHealth Corporation to sell its products “PG2® Lyo. Injection” and other drugs in Taiwan. The contract term is set to start in January 2014 to December 2016. If a party is not notified the contract would not be renewed in writing by the expiration date, and the contract would automatically be renewed for one more year.

The Group had signed a contract with AmCad BioMed Corporation to sell its products “AmCAD-Ute” in Taiwan. The contract term is set to start on April 24, 2015 and end on March 31, 2018. If a party is not notified the contract would not be renewed in writing by the expiration date, and the contract would automatically be renewed for one more year. The Group issued a guarantee note for $10,000 thousand as collateral of payment.

40 -

The purchase and sales prices and payment terms to related parties were not significantly different from those of sales to third parties.

Line Item Related Parties Category Selling expenses Associates	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2024 $ -	2023 $ 2

Selling expenses are the commissions paid by the Group to associates.

2) Receivables from related parties

	Related Party	March 31,	March 31,	December 31,	December 31,	March 31,	March 31,
Line Item	Category/Name		2024		2023		2023
Other receivables	Associates
	PhytoHealth Corporation	$	2,098	$	1,848	$	1,562
	AmCad BioMed		31		48		29
	Corporation
		$	2,129	$	1,896	$	1,591

The outstanding accounts receivable from related parties are unsecured. For the three months ended March 31, 2024 and 2023, no impairment losses were recognized for accounts receivable from related parties.

Other receivables represent payments made on behalf of the Group.

3) Payables to related parties

	Related Party	March 31,	March 31,	December 31,	December 31,	March 31,	March 31,
Account Item	Category/Name		2024		2023		2023
Accounts payable	Associates
	PhytoHealth Corporation	$	25,723	$	24,171	$	23,546
	Other		5		14		295
		$	25,728	$	24,185	$	23,841
Other payables	Associates	$	-	$	366	$	3

4) Refundable deposits

			December 31,	December 31,
Related Party Category/Name	March	31, 2024		2023	March	31, 2023
Associates
PhytoHealth Corporation	$	1,448	$	1,448	$	1,448
AmCad BioMed Corporation		249		249		249
	$	1,697	$	1,697	$	1,697

The refundable deposits are deposits received from PhytoHealth Corporation and AmCad BioMed Corporation for the rental of a plant and warehouse.

41 -

5) Lease arrangements

Lease arrangements the lessor of the Group under an operating lease

The Group leases the part of the plant to AmCad BioMed Corporation and PhytoHealth Corporation under an operating lease. Part of the lease agreement is specified the lease period will be automatically extended for one year if there are no objections for each other three months prior to the expiration each year.

Lease receivables were as follows:

			December 31,	December 31,
Related Party Category/Name	March	31, 2024		2023	March	31, 2023
Related parties
PhytoHealth Corporation	$	551	$	551	$	551
AmCad BioMed Corporation		98		98		98
	$	649	$	649	$	649

Lease payments to be received in the future were as follows:

Related Party Category/Name March 31, 2024 Associates PhytoHealth Corporation $ 8,897 AmCad BioMed Corporation 373 Lu Te Na Company Limited 63 $ 9,333 Total lease revenue was as follows: Related Party Category/Name Associates PhytoHealth Corporation AmCad BioMed Corporation Lu Te Na Company Limited	December 31, 2023 March 31, 2023 $ 10,472 $ 8,897 652 420 72 27 $ 11,196 $ 9,344 For the Three Months Ended March 31	December 31, 2023 March 31, 2023 $ 10,472 $ 8,897 652 420 72 27 $ 11,196 $ 9,344 For the Three Months Ended March 31	December 31, 2023 March 31, 2023 $ 10,472 $ 8,897 652 420 72 27 $ 11,196 $ 9,344 For the Three Months Ended March 31
		2024 $ 1,575 280 9 $ 1,864	2023 $ 1,575 280 9 $ 1,864

The rental amounts and collection methods are similar to that of general leasing transactions.

42 -

c. Remuneration of key management personnel

The remuneration of directors and other key management personnel was as follows:

Short-term employee benefits Post-employment benefits	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2024 $ 10,700 142 $ 10,842	2023 $ 11,286 170 $ 11,456

The remuneration of directors and key executives was determined by the remuneration committee based on the performance of individuals and market trends.

30. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

The following assets had been pledged as collateral for long-term borrowings:

			December 31,	December 31,
	March 31, 2024			2023	March 31, 2023
Land	$	74,189	$	74,189	$	74,189
Buildings		64,673		65,439		66,589
	$	138,862	$	139,628	$	140,778

31. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

In addition to those disclosed in other notes, significant contingencies and unrecognized commitments of the Group were as follows:

a. As of March 31, 2024, December 31, 2023 and March 31, 2023, the Group issued and deposited guarantee notes as purchase and performance guarantee, both of which are $10,000 thousand in three years.
b. As of March 31, 2024 and 2023, the Group had unrecognized contractual commitments of $177,003 thousand and $469,390 thousand, respectively, for the acquisition of property, plant and equipment.

32. SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD

None.

43 -

33. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

The Group’s significant financial assets and liabilities denominated in foreign currencies aggregated by the foreign currencies other than functional currencies of the entities in the Group and the related exchange rates between the foreign currencies and the respective functional currencies were as follows:

(In Thousands of New Taiwan Dollars and Foreign Currencies)

March 31, 2024

March 31, 2024
	Foreign			Carrying
	Currency		Exchange Rate	Amount
Financial assets
Monetary items
USD	$	240	32.00 (USD:NTD)	$	7,692
EUR		42	34.46 (EUR:NTD)		1,444
Financial liabilities
Monetary items
USD		289	32.00 (USD:NTD)		9,241
EUR		288	34.46 (EUR:NTD)		9,938
JPY		74	0.217 (JPY:NTD)		16
December 31, 2023
	Foreign			Carrying
	Currency		Exchange Rate	Amount
Financial assets
Monetary items
USD	$	33	30.71 (USD:NTD)	$	1,028
EUR		263	33.98 (EUR:NTD)		9,033
Financial liabilities
Monetary items
USD		21	30.71 (USD:NTD)		670
EUR		258	33.98 (EUR:NTD)		8,860
March 31, 2023
	Foreign			Carrying
	Currency		Exchange Rate	Amount
Financial assets
Monetary items
USD	$	126	30.45 (USD:NTD)	$	3,849
EUR		84	33.15 (EUR:NTD)		2,791
Financial liabilities
Monetary items
USD		109	30.45 (USD:NTD)		3,308
EUR		149	33.15 (EUR:NTD)		4,926

44 -

Refer to Note 23 (h) for the foreign currency exchange gains and losses (realized and unrealized) of the Group for the three months ended March 31, 2024 and 2023. Due to the wide variety of foreign currency transactions, it is impractical to disclose the exchange gains and losses for each foreign currency.

34. SPEARATELY DISCLOSED ITEMS

a. Information on significant transactions:
1) Financing provided to others: None;
2) Endorsements/guarantees provided: None;
3) Marketable securities held (excluding investments in subsidiaries, associates and joint ventures): (Table 1);
4) Marketable securities acquired or disposed of at costs or prices of at least NT$300 million or 20% of the paid-in capital: None;
5) Acquisition of individual real estate at costs of at least NT$300 million or 20% of the paid-in capital: None;
6) Disposal of individual real estate at prices of at least NT$300 million or 20% of the paid-in capital: None;
7) Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital: None;
8) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital: None;
9) Trading in derivative instruments: None;
10) Intercompany relationships and significant intercompany transactions: None
b. Information on investees (Table 2)
c. Information on investments in mainland China
1) Information on any investee company in mainland China, showing the name, principal business activities, paid-in capital, method of investment, inward and outward remittance of funds, ownership percentage, investment income or loss, carrying amount of the investment at the end of the year, repatriations of investment income, and limit on the amount of investment in the mainland China area (Table 3)
2) Any of the following significant transactions with investee companies in mainland China, either directly or indirectly through a third party, and their prices, payment terms, and unrealized gains or losses:
- a) The amount and percentage of purchases and the balance and percentage of the related payables at the end of the year: None.
- b) The amount and percentage of sales and the balance and percentage of the related receivables at the end of the year: None.
45 -
c) The amount of property transactions and the amount of the resultant gains or losses: None.
d) The balance of negotiable instrument endorsements or guarantees or pledges of collateral at the end of the year and the purposes: None.
e) The highest balance, the ending balance, the interest rate range, and total current period interest with respect to the financing of funds: None.
f) Other transactions that have a material effect on the profit or loss for the year or on the financial position, such as the rendering or receipt of services: None.
d. Information of major shareholders: List all shareholders with ownership of 5% or greater showing the name of the shareholder, the number of shares owned, and percentage of ownership of each shareholder (Table 4)

35. SEGMENT INFORMATION

Information reported to the Group’s chief operating decision maker for the purpose of resource allocation and assessment of segment performance focuses on the type of goods or services delivered or provided. The reporting departments of the Group are as follows: Management Department, MeiwuHair Department, and Medical Drugs Department.

a. Segment revenue and results

The following was an analysis of the Group’s revenue and results from continuing operations by reportable segments:

Consumer Business Unit Pharmaceutical Business Unit Inseparable general and administrative expense Interest income Rental income Other income Foreign exchange gains, net Gain on financial assets at fair value through profit or loss Interest expenses Share of loss of associates Profit before taxes (continuing operations)	Segment Income For the Three Months Ended March 31 2024 2023 $ 295,471 $ 244,750 112,230 100,224 $ 407,701 $ 344,974	Segment Income For the Three Months Ended March 31 2024 2023 $ 295,471 $ 244,750 112,230 100,224 $ 407,701 $ 344,974	Segment Gain/Loss	Segment Gain/Loss	Segment Gain/Loss
			For the Three Months Ended March 31
		2024 $ 295,471 112,230 $ 407,701		2024 $ 67,024 30,833 97,857 (24,960) 1,818 2,786 187 293 11 (11) (6,343) $ 71,638	2023 $ 61,065 25,889 86,954 (21,894) 1,683 2,714 308 264 73 (31) (2,865) $ 67,206

Segment revenue reported above represents revenue generated from external customers. There were no intersegment sales for the three months ended March 31, 2024 and 2023.

46 -

Segment profit represented the profit before tax earned by each segment without interest income, rental income, other income, foreign currency exchange benefits, gain of financial assets at fair value through profit or loss, interest expense and share of profit or loss of associates accounted for using the equity method. This measured amount was reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance.

b. Segment assets

The Group had not reported segment assets and liabilities information to the chief operating decision maker. Thus, no disclosure is made.

47 -

TABLE 1

MAYWUFA COMPANY LTD. AND SUBSIDIARIES

MARKETABLE SECURITIES HELD (EXCLUDING INVESTMENTS IN SUBSIDIARIES) FOR THE THREE MONTHS ENDED MARCH 31, 2024 (Amounts in Thousands of New Taiwan Dollars)

Holding Company Name	Marketable Securities Type and Name	Relationship with the Company	Financial Statement Account			March 31, 2024	March 31, 2024		Note
				Shares/Units (In Thousands)		Carrying Amount	Percentage of Ownership (%)	Fair Value (Note 1)
Maywufa Company Ltd.	Share Cathay Financial Holdings Co., Ltd. Fubon Financial Holding Co., Ltd. Taiwan Incubator SME Development Corp. Miho International Cosmetic Co., Ltd. Career Consulting Co., Ltd. Amersen Bioscience International, Inc. Biowell Technology, Inc. WS Fashion Group Co., Ltd. Amkey Biotechnology Venture Capital Inc.	- - Same chairman - - - - - -	Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income	503 301 8,526 333 505 568 3,272 13 147		$ 24,469 20,990 67,722 2,258 7,347 - - 317 6,822 $ 129,925	- - 12.08 0.39 3.23 8.43 7.56 0.45 6.66	$ 24,469 20,990 67,722 2,258 7,347 - - 317 6,822	Listed shares Listed shares

Note 1: Reference of fair value: listed (over the counter) stocks of financial assets measured by fair value through other comprehensive income are the closing prices at the end of March 2024, and unlisted (over the counter) stocks are estimated market prices based on the fair value evaluation method; Financial assets measured at fair value through profit or loss are the net asset value at the end of March 2024.

Note 2: For information of subsidiaries, refer to Tables 2 and 3.

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TABLE 2

MAYWUFA COMPANY LTD. AND SUBSIDIARIES

INFORMATION ON INVESTEES

FOR THE THREE MONTHS ENDED MARCH 31, 2024 (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Investor Company	Investee Company	Location	Main Businesses and Products	Original Investment Amount	Original Investment Amount	Balance as of March 31, 2024	Balance as of March 31, 2024	Balance as of March 31, 2024	Net Income (Loss) of the Investee	Share of Profit (Loss) (Note 1)	Note
				March 31, 2024	December 31, 2023	Shares (In Thousands)	%	Carrying Amount
Maywufa Company Ltd. Maywufa Corporation Maywufa Hongkong Corporation Limited	Related company PhytoHealth Corporation AmCad BioMed Corporation Broadsound Corporation Lu Te Na Company Limited Subsidiaries Maywufa Corporation Maywufa Hongkong Corporation Limited Maywufa cosmetics (Shanghai) Co., Ltd.	Fuxing N. Rd., Taipei City, Taiwan (R.O.C.) Fuxing N. Rd., Taipei City, Taiwan (R.O.C.) Xintai Rd., Zhubei City, Taiwan (R.O.C.) Fuxing N. Rd., Taipei City, Taiwan (R.O.C.) Vistra Corporate Services Centre, Ground Floor NPF Building, Beach Road, Apia, Samoa Room 06, G/F, 535 Canton Road, Kowloon, Hong Kong Room 902, No. 777, Hongqiao Road, Xuhui District, Shanghai	Pharmaceutical research and development, production, manufacturing and sales Medical Materials and Equipment Manufacturing Medical Materials and Equipment Manufacturing Cosmetics Sales Investment Investment Cosmetics and household goods wholesale	$ 1,016,963 65,749 26,360 7,000 US$ 8,500 US$ 8,500 US$ 7,500	$ 1,016,963 65,749 26,360 7,000 US$ 8,500 US$ 8,500 US$ 7,500	35,131 3,474 2,019 700 8,500 8,500 -	17.69 6.52 10.00 35.00 100.00 100.00 100.00	$ 466,279 23,780 22,835 2,369 140,939 141,403 141,400	$ (27,964) (15,639) (3,945) 40 (744) (744) (744)	$ (4,849) (1,019) (489) 14 (744) (744) (744)	(Note 2) (Note 2) (Note 2)

Note 1: Recognition of investment gains (losses) was based on the investee’s reviewed financial statements.

Note 2: The amounts have been eliminated from the consolidated financial statements.

Note 3: For the information on investment in mainland China, refer to Table 3.

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TABLE 3

MAYWUFA COMPANY LTD. AND SUBSIDIARIES

INFORMATION ON INVESTMENTS IN MAINLAND CHINA FOR THE THREE MONTHS ENDED MARCH 31, 2024 (Amounts in Thousands of New Taiwan Dollars and US Dollars)

Name of the investee company in mainland China, main businesses, paid-in capital, investment method, capital remittance, shareholding ratio, investment profit and loss, book value of investment at the end of the period, and repatriated investment profit and loss were as follow:

Investee Company	Main Businesses and Products	Paid-in Capital	Method of Investment	Accumulated Outward Remittance for Investment from Taiwan as of January 1, 2024	Remittance of Funds	Remittance of Funds	Accumulated Outward Remittance for Investment from Taiwan as of March 31, 2024	Net Income (Loss) of the Investee	% Ownership of Direct or Indirect Investment	Accumulated Repatriation of Investment Income as of March 31, 2024	Carrying Amount as of March 31, 2024	Accumulated Inward Remittance for Investment from Taiwan as of March 31, 2024
					Outward	Inward
Maywufa cosmetics (Shanghai) Co., Ltd.	Cosmetics and household goods wholesale	$ 226,459 (US$ 7,500)	Reinvesting in mainland China through companies located in a third region (Note 1)	$ 226,459 (US$ 7,500)	$ -	$ -	$ 226,459 (US$ 7,500)	$ (744)	100	$ (744) (Note 2)	$ 141,400	$ -

Note 1: The Company located in a third region is Maywufa Hongkong Corporation Limited.

Note 2: Investment gains and losses are recognized according to the financial statements reviewed by the accountant.

Investment limit in mainland China

(Amounts in Thousands of New Taiwan Dollars and US Dollars)

Accumulated Outward Remittance for Investments in Mainland China as of March 31, 2023	Investment Amount Authorized by the Investment Commission, MOEA	Upper Limit on the Amount of Investments Stipulated by the Investment Commission, MOEA
$226,459 (US$7,500)	$352,000 (US$11,000)	$1,268,683

Note: Upper Limit on the Amount of Investments Stipulated by the Investment Commission, MOEA = $2,114,471 × 60% = $1,268,683.

The significant transactions with investee companies in mainland China either directly or indirectly through a third party: None.
Endorsements, guarantees or collateral provided to mainland investment companies directly or indirectly through companies in a third region: None.
Direct and indirect financing with mainland investment companies via third regions: None.
Other transactions that have a significant impact on the current profit or loss or financial position: None.
When preparing the consolidated financial statements, the above transactions have been eliminated.
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TABLE 4

MAYWUFA COMPANY LTD. AND SUBSIDIARIES

INFORMATION OF MAJOR SHAREHOLDERS MARCH 31, 2024

Major Shareholder Name	Shares	Shares
	Number of Shares Held	Shareholding Percentage (%)
Cheng Yi Investment Company Ltd. PhytoHealth Corporation Li Ling Investment Company Ltd.	23,594,819 16,737,700 14,946,556	17.75 12.59 11.24

Note 1: The information of major shareholders presented in this table is provided by the Taiwan Depository & Clearing Corporation based on the number of ordinary shares and preferred shares held by shareholders with ownership of 5% or greater, that have been issued without physical registration (including treasury shares) by the Company as of the last business day for the current quarter. The share capital in the consolidated financial statements may differ from the actual number of shares that have been issued without physical registration because of different preparation basis.
Note 2: If a shareholder delivers the shareholdings to the trust, the above information will be disclosed by the individual trustor who opened the trust account. For shareholders who declare insider shareholdings with ownership greater than 10% in accordance with the Securities and Exchange Act, the shareholdings include shares held by shareholders and those delivered to the trust over which shareholders have rights to determine the use of trust property. For information relating to insider shareholding declaration, please refer to the Market Observation Post System.
51 -

AI assistant

Maywufa — Interim / Quarterly Report 2024

51908_rns_2024-11-07_6f5c5b06-31e7-4ae2-846f-7b290c3f460b.pdf

Maywufa Company Ltd. and Subsidiaries

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

INDEPENDENT AUDITORS’ REVIEW REPORT

Introduction

Scope of Review

Conclusion

Other Matter

Notice to Readers

MAYWUFA COMPANY LTD. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In Thousands of New Taiwan Dollars)

MAYWUFA COMPANY LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

MAYWUFA COMPANY LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

MAYWUFA COMPANY LTD. AND SUBSIDIARIES

MAYWUFA COMPANY LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars)

MAYWUFA COMPANY LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars)

MAYWUFA COMPANY LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED MARCH 31, 2024 AND 2023 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

1. GENERAL INFORMATION

2. APPROVAL OF FINANCIAL STATEMENTS

3. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS

New, Amended and Revised Standards and Interpretations

Effective Date Announced by IASB (Note 1)

IFRS 18 “Presentation and Disclosures in Financial Statements”

4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

2) Retirement benefits

5. MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

6. CASH AND CASH EQUIVALENTS

a. Notes receivable

March 31, 2023

b. Accounts receivable

March 31, 2024

c. Other receivables

9. INVENTORIES

10. OTHER FINANCIAL ASSETS - CURRENT

11. SUBSIDIARIES

Subsidiaries Included in the Consolidated Financial Statements

12. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

13. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

14. PROPERTY, PLANT AND EQUIPMENT

Assets Used by the Group

15. LEASE ARRANGEMENTS

b. Lease liabilities

d. Other lease information

16. OTHER ASSETS

18. NOTES PAYABLE AND ACCOUNTS PAYABLE

Accounts Payable

19. OTHER PAYABLES

20. RETIREMENT BENEFIT PLANS

21. EQUITY

b. Capital surplus

c. Retained earnings and dividends policy

d. Special reserve

e. Other equity items

1) Exchange differences on translation of financial statements of foreign operations

22. REVENUE

Revenue from sale of goods

Contract balances

23. NET PROFIT

c. Other gains and losses

d. Interest expense

f. Employee benefits expense

g. Compensation of employees and remuneration of directors

Accrual rate

24. INCOME TAXES RELATING

b. Income tax assessment

25. EARNINGS PER SHARE

Net Profit for the Period

26. CASH FLOW INFORMATION

a. Non-cash transactions

27. CAPITAL RISK MANAGEMENT

28. FINANCIAL INSTRUMENTS

Financial assets at FVTOCI - equity instruments

Maywufa Interim / Quarterly Report 2024