PARPRO - Annual Report 2023 | FinancialReports.eu

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Stock code ： 4916 PARPRO CORPORATION

Reference materials for various resolutions of the shareholders’ meeting in 2024

Proposals

Adoption of the Company's 2023 Business Report and Financial Statements and subsidiaries' consolidated financial statements.
Description:
(1) The company's 2023 annual financial statements and the consolidated financial statements prepared in accordance with the International Financial Reporting Standards have been completed, and have been audited by Deloitte & Touch, together with the 2023 annual business report have been approved by the board of directors. The audit committee has reviewed.
(2) Please refer to Appendix 1 and Appendice 3 for the above business report and financial statements.
Resolution:
Adoption of the proposal for distribution of 2023 earnings of the Company. Description: Please refer to Appendix 4 for the company's 2023 profit distribution statement. Resolution:

Election

Co-option of Director

Description:

(1) According to the articles of association of the company, the company shall have three to seven directors with three-year terms. The director election adopts the candidate nomination system of Article 192-1 of the Company Law. The shareholders' meeting shall decide on the list of director candidates. If elected, the director could be continue in office.
(2) The company currently has a total of six directors (including independent directors) and plans to co-opt one director. The term of office will be the same as that of the current directors until May 30, 2025.
(3) The information of the director candidates has been nominated and approved by the company's board of directors on March 13, 2024. Please refer to Appendix 5 for the information of the director candidates.

Resolution:

Motions

Adjournment of Meeting

(Appendix 1)

2023 Annual Business Report

2023 operating results, 2024 year business plan and future company development strategy, affected by external competition environment, regulatory environment and overall business environment are explained as follows:

1. 2023 business results

(1) 2023 business plan implementation results

In 2023, benefiting from the continued increase in economic and industrial demand after the epidemic and the influx of new orders from the national defense industry, revenue in 2023 increased by 637,691 thousand compared with 2022, which increase of 22.97/%. The overall net profit after tax in 2023 was 80,320 thousand. Consolidated financial statement are presented below.

Looking forward to 2024, although global inflation is still high and there may be uncertain factors that drive the industrial and economic development of various regions, the U.S. industrial and economic recovery trend should be expected. In addition, geopolitics and the emergence of new technologies and product applications in various regions, if the application of edge AI expands in various industrial fields, it will increase the vigorous development of industrial demand and create favorable opportunities.Parpro Corporation is expected to benefit from the epidemic economic recovery, which will drive an increase in shipments of aerospace, network communications, medical, gaming and smart retail products. The threat of geopolitical risks will also increase the investment in defense industry products by various countries. Parpro Corporation is cautiously optimistic about Business development of each product line in 2024.

		Unit:	Unit:	Unit:	NT$ thousand;%
Item		2022	2023	Increase/Decrease	Ratio of change
Operatingincome		2,776,680	3,414,371	637,691	22.97
Cost ofgoods sold		2,318,545	2,935,555	617,010	26.61
Operating profit		458,135	478,816	20,681	4.51
Operatingexpenses		369,217	321,708	(47,509)	(12.87)
Operatingnet(loss) profit		88,918	157,108	68,190	76.69
Net non-operatingincome		18,823	(16,437)	(35,260)	(187.32)
Netprofit before tax		107,741	140,671	32,930	30.56
Netprofit for theyear		99,513	80,320	(19,193)	(19.29)
Budget execution status: Not applicable. Profitability Analysis Item Financial Structure (%) Liabilities to Assets Ratio Long-term funds to fixed assets Ratio Solvency (%) Current Ratio
	Item			2022	2023
	Liabilities to Assets Ratio			58.25	44.89
	Long-term funds to fixed assets Ratio			1,403.12	2,010.12
	Current Ratio			147.29	221.23

(2) Budget execution status: Not applicable.

(3) Profitability Analysis

	Quick Ratio	65.99	91.67
Profitability (%)	Return on assets	4.37	3.25
	Return on equity	7.41	4.62
	Earnings per share (NT$)	1.21	0.87

(4) Research Development Status

The main operations and products of Papro Corporation are divided into gaming and industrial computers, aerospace and defense industries and other fields. The operating bases are in Taiwan, Mexico and the United States. "Technology research and development, innovative development, global layout" and other strategies, through vertical and horizontal integration, continue to improve and optimize the group's production and manufacturing capacity, strengthen research and development capabilities, gradually form barriers to entry in the same industry, and develop new technologies and new products and industrial applications, widely used in gaming, industrial computers, aerospace, defense industry, Netcom, medical, Internet of Things, smart retail, automotive and other industries/product fields.

2024 Annual Operation Plan
(1) Operating strategy
- A. Maintenance and improvement of customer relationship, deep cultivation and development of gaming, industrial computer, aerospace, defense industry and other industrial applications.
- B. Group operation integration, including order receiving and production arrangement, R&D cooperation/support and joint development, so as to achieve resource sharing, more efficient operation, and share results.
- C. Intensify research and development energy with innovation, and expand new or potential products and industrial applications in the future.
- D. Effectively control operating costs and improve the overall profitability of the group.
(2) Important Production and Marketing Policies
- A. Strengthen the relationship with existing customers, grasp existing orders and shipments, and then increase new or potential customers and orders.
- B. Strengthen the supply chain relationship and enhance the bargaining power of suppliers.
- C. To reduce material cost.
- D. Through the improvement of manufacturing process and yield rate, we can provide customers with high quality and shorten delivery time.
- E. Carry out cost control and maintain/improve stable profits.
Future company development strategy
(1) Maintenance and improvement of customer relationship.
(2) R&D energy and technology are continuously quenched to establish/enlarge the differentiated value with competitors in the same industry.
(3) Seek for mergers and acquisitions or strategic alliances, and gradually expand the group's operating scale and realize greater profit momentum

for the group through horizontal and vertical operation integration models.

(4) Prudent financial strategy and implementation of corporate governance, strengthening and maintaining good investor relations.
(5) Cultivate global talents and build an international team.
Affected by the external competitive environment, regulatory environment and overall business environment

The competition in the external environment is fierce. The company will continue to recruit outstanding talents, increase the added value of products and expand product lines to increase market share, so as to maintain the stable growth of operations. At the same time, it will continue to integrate the operations of the various operating companies of the group Configuration, in order to achieve the effect of reducing costs and enhancing competitiveness.

In addition, in the face of increasingly strict laws and regulations on environmental protection, investors, consumers, intellectual property rights, and labor rights, the company will also implement the spirit of corporate governance, fulfill corporate social responsibilities, and implement relevant laws and regulations. Changes in important policies and regulations affect finances and business. In the future, we will also keep an eye on changes in important policies and regulations at home and abroad, and propose timely measures to respond to them.

Under the operation of a globalized, conglomerate, and specialized enterprise, Papro Corporation will continue to face challenges with more stable and practical management in response to the trend of internationalization. Papro Corporation also believes that with the encouragement and encouragement of all colleagues and shareholders of the company .Under the guidance, Papro Corporation will be able to reach new heights and create greater benefits for shareholders.

(Appendix 3)

Independent Auditor’s Report

To PARPRO CORPORATION.,

Audit opinion

We have audited the accompanying parent company only balance sheet of PARPRO CORPORATION. (the “Company”) for the years ended December 31, 2023 and 2022 and the relevant parent company only statements of comprehensive income, changes in equity, and cash flows for the years then ended, and relevant notes, including a summary of significant accounting policies (collectively referred to as the “parent company only financial statements”).

In our opinion, the accompanying parent company only financial statements present fairly, in all material respects, the Company’s individual financial position as of December 31, 2023 and 2022 and for the years then ended, and its individual financial performance and cash flows for the years then ended in conformity with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for audit opinion

We conducted our audits in accordance with the Regulations Governing the Auditing and Attestation of Financial Statements by Certified Public Accountants and the auditing standards. Our responsibilities under those standards are further described in the “Auditor’s responsibilities for the audit of the parent company only financial statements” paragraph of our report. We are independent of the Company in accordance with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China and have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that we have acquired enough and appropriate audit evidence to serve as the basis for our audit opinion.

Key audit matters

Key audit matters refer to the most vital matters in our audit of the Company’s parent company only financial statements for the year ended December 31, 2023 based on our professional judgment. These matters were addressed in our audit of the parent company only financial statements as a whole, and in forming our audit opinion. We do not express a separate opinion on these matters.

Key audit matters of the Company’s parent company only financial statements for the year ended December 31, 2023, are stated as follows:

Authenticity of investments using the equity method – operating revenue from subsidiaries’ certain

customers

The Company’s subsidiaries mainly sell gaming and industrial computers as well as aerospace and national defense products. In 2023, the amount of product revenue from certain customers changed significantly on a year-on-year basis; as we considered revenue recognition to bear a higher inherent risk of fraud and that the management might be pressured to achieve planned financial targets, we listed the authenticity of such revenue as a key audit matter.

We performed for the following audit procedures for the above matter:

Learned about and tested the key internal control systems for the revenue and evaluated the design and implementation effectiveness;
Obtained the statements of the account of the revenue, selected samples for testing of the details, and reviewing documents, such as orders, shipping orders, and invoices to confirm the authenticity of the revenue;
Obtain the statements of the account of the revenue and selected samples to test if there was a significant difference in the write-offs and amounts of receivables to confirm the authenticity of the revenue.

Responsibilities of the management and the governing bodies for the parent company only financial statements

The management’s responsibilities are to prepare the parent company only financial statements with fair presentation in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and to maintain necessary internal control associated with the preparation in order to ensure that the parent company only financial statements are free from material misstatement arising from fraud or error.

In preparing the parent company only financial statements, the management is also responsible for assessing the ability of the Company in continuing as a going concern, disclosing relevant matters, and adopting the going concern basis of accounting unless the management intends to liquidate the Company or cease the operations without other viable alternatives.

The Company’s governing bodies (including the Audit Committee) are responsible for supervising the financial reporting process.

Auditor’s responsibilities for the audit of the parent company only financial statements

Our objectives are to obtain reasonable assurance on whether the parent company only financial statements as a whole are free from material misstatement arising from fraud or error and to issue an independent auditors’ report. Reasonable assurance is a high-level assurance but is not a guarantee that an audit conducted in accordance with the auditing standards will always detect a material misstatement when it exists. Misstatement may arise from frauds or error. If the amounts of misstatements, either separately or in aggregate, could reasonably be expected to influence the economic decisions of the users of the parent company only financial statements, they are considered material.

We have exercised our professional judgment and professional skepticism when performing the audit work in accordance with the auditing standards. We also performed the following tasks:

Identified and assessed the risks of material misstatement arising from fraud or error within the parent company only financial statements; designed and executed countermeasures in response to said risks, and obtained sufficient and appropriate audit evidence to provide a basis for our opinion. Fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Therefore, the risk of not detecting a material misstatement resulting from fraud is higher than the one resulting from error.
Understood the internal control related to the audit in order to design appropriate audit procedures under the circumstances, while not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.
Evaluated the appropriateness of accounting policies adopted and the reasonableness of accounting estimates and relevant disclosures made by the management.
Concluded on the appropriateness of the management’s adoption of the going concern basis of accounting based on the audit evidence obtained and whether a material uncertainty exists for events or conditions that may cast significant doubt over the Company’s ability to continue as a going concern. If we are of the opinion that a material uncertainty exists, we shall remind users of the parent company only financial statements to pay attention to relevant disclosures in the said statements within our audit report. If such disclosures are inadequate, we need to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluated the overall presentation, structure, and content of the parent company only financial statements (including relevant notes), and whether the parent company only financial statements adequately present the relevant transactions and events.
Obtained sufficient and appropriate audit evidence concerning the financial information of entities within the Company, to express an opinion on the parent company only financial statements. We were responsible for guiding, supervising, and performing the audit and forming an audit opinion on the Company.

The matters communicated between us and the governing bodies included the planned scope and times of the audit and material audit findings (including any material defects in internal control identified during the audit).

We also provided the governing bodies with a declaration that we have complied with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China regarding independence and communicated with them all relations and other matters that may possibly be regarded as detrimental to our independence (including relevant protective measures).

From the matters communicated with the governing bodies, we determined the key audit matters for the audit of the Company’s parent company only financial statements for the year ended December 31, 2023. We have clearly indicated such matters in the auditors’ report. Unless legal regulations prohibit the public disclosure of specific matters, or in extremely rare cases, where we decided not to communicate specific items in the auditors’ report for it could be reasonably anticipated that the negative effects of such disclosure would be greater than the public interest it brings forth.

Deloitte & Touche CPA Chen, Pei-Te

CPA Chen, Chun-Hung

Financial Supervisory Commission Approval Document No. Jin-Guan-Zheng-Shen-Zi No. 1080321204

Financial Supervisory Commission Approval Document No.

Jin-Guan-Zheng-Shen-Zi No. 0990031652

March 13, 2024

PARPRO CORPORATION.

Parent Company Only Balance Sheet

December 31, 2023 and 2022

Unit: NTD thousand

Code 1100 1110 1172 1200 1220 130X 1410 11XX 1517 1550 1600 1755 1840 1990 15XX 1XXX Code 2100 2110 2120 2170 2219 2230 2250 2280 2320 2399 21XX 2530 2540 2570 2580 25XX 2XXX 3100 3200 3310 3320 3350 3300 3400 3500 3XXX	Assets Current assets Cash (Note 6) Financial assets at fair value through profit or loss (Note 7) Accounts receivable (Notes 9 and 23) Other receivables (Note 23) Current income tax assets Inventory Prepayments Total current assets Non-current assets Financial assets at fair value through other comprehensive income (Note 8) Investments using the equity method (Notes 5 and 10) Property, plant and equipment (Note 11) Right-of-use assets (Note 23) Deferred tax assets (Note 19) Other non-current assets Total non-current assets Total assets Liabilities and equity Current liabilities Short-term borrowings (Note 12) Short-term notes payable Financial liabilities at fair value through profit or loss (Note 7) Accounts payable (Note 23) Other payables (Notes 14 and 23) Current income tax liabilities Provisions Lease liabilities (Note 23) Long-term liabilities – current portion (Notes 12 and 13) Other current liabilities (Notes 17 and 23) Total current liabilities Non-current liabilities Corporate bonds payable (Note 13) Long-term borrowings (Note 12) Deferred tax liabilities (Note 19) Lease liabilities (Note 23) Total non-current liabilities Total liabilities Equity (Note 16) Ordinary share capital Capital surplus Retained earnings Legal reserve Special reserve Undistributed earnings Total retained earnings Other equity Treasury shares Total equity Total liabilities and equity		December 31, 2023 Amount % $ 90,254 3 8 - 31,769 1 110,945 4 3 - - - 1,009 - 233,988 8 48,448 2 2,569,639 89 13,410 1 11,528 - 1,536 - 3,158 - 2,647,719 92 $ 2,881,707 100 $ 180,000 6 30,000 1 7,880 - 62 - 48,567 2 14,719 1 1,113 - 5,090 - 90,621 3 150 - 378,202 13 422,685 15 71,156 2 20 - 6,519 - 500,380 17 878,582 30 983,789 34 642,138 23 141,737 5 33,051 1 225,535 8 400,323 14 23,125) ( 1) - - 2,003,125 70 $ 2,881,707 100		December 31, 2022	December 31, 2022
			Amount $ 90,254 8 31,769 110,945 3 - 1,009 233,988 48,448 2,569,639 13,410 11,528 1,536 3,158 2,647,719 $ 2,881,707 $ 180,000 30,000 7,880 62 48,567 14,719 1,113 5,090 90,621 150 378,202 422,685 71,156 20 6,519 500,380 878,582 983,789 642,138 141,737 33,051 225,535 400,323 23,125) - 2,003,125 $ 2,881,707		Amount $ 47,896 - 49,986 286,267 3 454 2,790 387,396 10,160 2,328,589 16,309 521 1,211 1,939 2,358,729 $ 2,746,125 $ 470,000 - 11,954 18,218 80,669 - 1,113 532 130,041 46,030 758,557 463,567 47,827 1,995 - 513,389 1,271,946 833,544 329,808 131,486 137,381 104,145 373,012 33,051) 29,134) 1,474,179 $ 2,746,125	%
		(		( (		2 - 2 10 - - - 14 - 85 1 - - - 86 100 17 - - - 3 - - - 5 2 27 17 2 - - 19 46 30 12 5 5 4 14 ( 1) ( 1) 54 100

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

Chairman: Liao, Wen-Chia

Managerial Officer: Yen, Tsung-Chien

Chief Accounting Officer: Wu, Hsiu-Pi

PARPRO CORPORATION.

Parent Company Only Statement of Comprehensive Income

December 31, 2023 and 2022

Unit: In NTD thousand, except for earnings per share in NTD

Code 4100 Operating revenue (Notes 17 and 23) 5110 Operating costs (Note 23) 5900 Gross profit (loss) Operating expenses (Notes 9 and 18) 6100 Selling expense 6200 Administrative expenses 6450 Gain on reversal of expected credit impairment 6000 Total operating expenses 6900 Net operating loss Non-operating income and expenses (Notes 18 and 23) 7100 Interest income 7010 Other income 7020 Other gains and losses 7050 Financial costs 7070 Share of profit and loss of subsidiaries and associates using the equity method 7000 Total non-operating income and expenses 7900 Net income before tax 7950 Income tax expense (Note 19) 8200 Net income for 2023		2023

(Continued from the next page)

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Code Other comprehensive income 8310 Items not reclassified to profit or loss: 8316 Unrealized gains or losses on investment in equity instruments at fair value through other comprehensive income 8330 Share of other comprehensive income of subsidiaries and associates using the equity method 8360 Items that may be reclassified subsequently to profit or loss: 8361 Exchange Differences in Translating the Financial Statements of Foreign Operations 8300 Other comprehensive income after tax 8500 Total comprehensive income for 2023 Earnings per share (Note 20) 9750 Basic 9850 Diluted		2023		% 10 7 5) 12 115	2022
		Amount $ 8,306 5,432 4,037) 9,701 $ 90,021 $ 0.87 $ 0.73			Amount ( $ 7,300 ) 9,144 172,155 173,999 $ 273,512 $ 1.21 $ 1.07	%
	(		(			( 9 ) 11 209 211 332

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

Chairman: Liao, Wen-Chia Managerial Officer: Yen, Tsung-Chien Chief Accounting Officer: Wu, Hsiu-Pi

PARPRO CORPORATION.

Parent Company Only Statement of Changes in Equity

December 31, 2023 and 2022

Unit: NTD thousand

Share capital Ordinary share capital Share capital to be registered $ 834,516 $ 28 - - - - - - - - - - - - - - - - - - 28 ( 28 ) ( 1,000) - 833,544 - - - - - - - - - - - - - - - - - 161,495 - ( 11,250) - $ 983,789 $ -	Share capital Ordinary share capital Share capital to be registered $ 834,516 $ 28 - - - - - - - - - - - - - - - - - - 28 ( 28 ) ( 1,000) - 833,544 - - - - - - - - - - - - - - - - - 161,495 - ( 11,250) - $ 983,789 $ -	Capital surplus $ 310,881 - - - - - - - 28,740 ( 8,223 ) - ( 1,590) 329,808 - - - - - - - 31,291 281,039 - $ 642,138		Retained earnings	Undistributed earnings $ 105,974 ( 10,597 ) ( 60,844 ) ( 32,892) ( 104,333) 99,513 2,991 102,504 - - - - 104,145 ( 10,251 ) 104,330 ( 34,900) 59,179 80,320 ( 225) 80,095 - - ( 17,884) $ 225,535	Other equity items Exchange Differences in Translating the Financial Statements of Foreign Operations Unrealized gain (loss) on financial assets at fair value through other comprehensive income ( $ 193,964 ) ( $ 10,095 ) - - - - - - - - - - 172,155 ( 1,147) 172,155 ( 1,147) - - - - - - - - ( 21,809 ) ( 11,242 ) - - - - - - - - - - ( 4,037) 13,963 ( 4,037) 13,963 - - - - - - ($ 25,846) $ 2,721	Other equity items Exchange Differences in Translating the Financial Statements of Foreign Operations Unrealized gain (loss) on financial assets at fair value through other comprehensive income ( $ 193,964 ) ( $ 10,095 ) - - - - - - - - - - 172,155 ( 1,147) 172,155 ( 1,147) - - - - - - - - ( 21,809 ) ( 11,242 ) - - - - - - - - - - ( 4,037) 13,963 ( 4,037) 13,963 - - - - - - ($ 25,846) $ 2,721	Treasury shares ( $ 31,724 ) - - - - - - - - - - 2,590 ( 29,134 ) - - - - - - - - - 29,134 $ -		Total equity
						Exchange Differences in Translating the Financial Statements of Foreign Operations ( $ 193,964 ) - - - - - 172,155 172,155 - - - - ( 21,809 ) - - - - - ( 4,037) ( 4,037) - - - ($ 25,846)
Ordinary share capital $ 834,516 - - - - - - - - - 28 ( 1,000) 833,544 - - - - - - - - 161,495 ( 11,250) $ 983,789			Legal reserve $ 120,889 10,597 - - 10,597 - - - - - - - 131,486 10,251 - - 10,251 - - - - - - $ 141,737	Special reserve $ 76,537 - 60,844 - 60,844 - - - - - - - 137,381 - ( 104,330 ) - ( 104,330) - - - - - - $ 33,051
( (	(	( (		( (	( ( ( ( ( ( ( (	( ( ( ( (	( ( ( (	( (	( ( ( ( (	$ 1,213,042 - - 32,892) 32,892) 99,513 173,999 273,512 28,740 8,223 ) - - 1,474,179 - - 34,900) 34,900) 80,320 9,701 90,021 31,291 442,534 - $ 2,003,125

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

Chairman: Liao, Wen-Chia

Managerial Officer: Yen, Tsung-Chien

Chief Accounting Officer: Wu, Hsiu-Pi

PARPRO CORPORATION.

Parent Company Only Statement of Cash Flows

December 31, 2023 and 2022

Unit: NTD thousand

Code Net cash flow of operating activities A10000 Net income before tax A20010 Income and expenses A20100 Depreciation expense A20300 Gain on reversal of expected credit impairment A20400 Net (gain) loss on financial instruments measured at fair value through profit or loss A20900 Financial costs A21200 Interest income A22400 Share of profit and loss of subsidiaries and associates using the equity method A22500 Gain on disposal of property, plant and equipment A23700 Loss on inventory valuation loss and obsolescence reversed A24100 Unrealized foreign exchange gain A24200 Loss on repayment of convertible corporate bonds A30000 Net changes in operating assets and liabilities A31150 Accounts receivable A31180 Other receivables A31200 Inventory A31230 Prepayments A32150 Accounts payable A32180 Other payables A32230 Other current liabilities A33000 Cash inflow from operations A33100 Interest received A33300 Interest paid A33500 Income tax (paid) refunded AAAA Net cash inflow from operating activities Net cash flow of investing activities B00010 Financial assets at fair value through other comprehensive income acquired B02700 Property, plant and equipment acquired B02800 Proceeds from disposal of property, plant and equipment	2023 $ 93,948 8,334 - ( 7,834 ) 18,459 ( 2,000 ) ( 58,770 ) - ( 749 ) ( 2,511 ) - 18,476 11,107 1,203 1,781 ( 18,161 ) 33,260 ( 45,880) 50,663 3,240 ( 8,702 ) ( 107) 45,094 ( 29,982 ) ( 1,500 ) -	2022
		$ 102,819 10,539 ( 835 ) 4,003 35,013 ( 1,506 ) ( 93,012 ) ( 108 ) ( 2,367 ) ( 27,377 ) 6,175 ( 12,424 ) ( 49,799 ) 10,989 ( 2,217 ) 12,170 ( 1,945 ) 45,760 35,878 1,651 ( 19,247 ) 13 18,295 ( 17,460 ) - 108

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Code B04300 Loans to subsidiaries B04400 Loans to subsidiaries recovered B06800 Decrease (increase) in other non- current assets B07600 Dividends from associates received BBBB Net cash inflows (outflows) from investing activities Net cash flow of financing activities C00200 Decrease in short-term borrowings C00500 Increase in short-term notes payable C01200 Convertible corporate bonds issued C01300 Convertible corporate bonds repaid C01600 Long-term borrowings C01700 Long-term borrowings repaid C03700 Increase (decrease) in other payables C04020 Lease principal repaid C04500 Dividends paid to owners of the Company C05400 Equity in subsidiary acquired C09900 Capital contribution returned for subsidiary’s capital reduction CCCC Net cash inflows (outflows) from financing activities DDDD Effect of exchange rate changes on cash EEEE Net increase (decrease) in cash E00100 Opening balance of cash E00200 Ending balance of cash	2023 $ - 165,495 ( 1,219 ) 3,990 136,784 ( 290,000 ) 30,000 394,488 - 100,000 ( 85,105 ) ( 65,000 ) ( 3,865 ) ( 34,900 ) ( 184,875 ) - (139,257) ( 263) 42,358 47,896 $ 90,254	2022
		( $ 150,862 ) - 348 3,990 (163,876) ( 60,000 ) - 494,409 ( 425,500 ) 70,000 ( 101,036 ) 65,000 ( 3,308 ) ( 41,115 ) - 40,000 38,450 9,539 ( 97,592 ) 145,488 $ 47,896

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

Chairman: Liao, Wen-Chia Managerial Officer: Yen, Tsung-Chien Chief Accounting Officer: Wu, Hsiu-Pi

Representation Letter

The affiliates that are required to be included in the Company’s consolidated financial statements as of and for the year ended December 31, 2023, under the Criteria Governing the Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises are the same as those included in the consolidated financial statements prepared in conformity with the International Financial Reporting Standard No. 10. In addition, the information required to be disclosed in the combined financial statements of affiliates is included in the said consolidated financial statements. Consequently, a separate set of combined financial statements of affiliates will not be prepared.

It is hereby certified that the information disclosed herein is true and correct.

Name of Company: PARPRO CORPORATION.

Person-in-charge: Liao, Wen-Chia

March 13, 2024

Independent Auditor’s Report

To PARPRO CORPORATION.,

Audit opinion

We have audited the accompanying consolidated balance sheets of PARPRO CORPORATION. (the “Company”) and its subsidiaries (collectively, the “Group”) for the years ended December 31, 2023 and 2022 and the relevant consolidated statements of comprehensive income, changes in equity, and cash flows for the years then ended, and relevant notes, including a summary of significant accounting policies (collectively referred to as the “consolidated financial statements”).

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as of December 31, 2023 and 2022 and for the years then ended, and its consolidated financial performance and its consolidated cash flows for the years then ended in conformity with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) endorsed and issued into effect by the Financial Supervisory Commission (FSC) of the Republic of China.

Basis for audit opinion

We conducted our audits in accordance with the Regulations Governing the Auditing and Attestation of Financial Statements by Certified Public Accountants and the auditing standards. Our responsibilities under those standards are further described in the “Auditor’s responsibilities for the audit of the consolidated financial statements” paragraph of our report. We are independent of the Group in accordance with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China and have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that we have acquired enough and appropriate audit evidence to serve as the basis for our audit opinion.

Key audit matters

Key audit matters refer to the most vital matters in our audit of the Group’s consolidated financial statements for the year ended December 31, 2023 based on our professional judgment. These matters were addressed in our audit of the consolidated financial statements as a whole, and in forming our audit opinion. We do not express a separate opinion on these matters.

Key audit matters of the Group’s consolidated financial statements for the year ended December 31, 2023, are stated as follows:

– Authenticity o revenue operating revenue from certain customers

The Group mainly sells gaming and industrial computers as well as aerospace and national defense products. In 2023, the amount of product revenue from certain customers changed significantly on a year-on-year basis; as we considered revenue recognition to bear a higher inherent risk of fraud and that the management might be pressured to achieve planned financial targets, we listed the authenticity of such revenue as a key audit matter.

We performed for the following audit procedures for the above matter:

Learned about and tested the key internal control systems for the revenue and evaluated the design and implementation effectiveness;
Obtained the statements of the account of the revenue, selected samples for testing of the details, and reviewing documents, such as orders, shipping orders, and invoices to confirm the authenticity of the revenue;
Obtain the statements of the account of the revenue and selected samples to test if there was a significant difference in the write-offs and amounts of receivables to confirm the authenticity of the revenue.

Other matters

The Company has also prepared the parent company only financial statements for the years ended December 31, 2023 and 2022, for which we have issued an audit report, with an unqualified opinion, for reference.

Responsibilities of the management and the governing bodies for the consolidated financial statements

The management’s responsibilities are to prepare the consolidated financial statements with fair presentation in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively referred to as “IFRSs”) endorsed and issued into effect by the Financial Supervisory Commission (FSC) of the Republic of China and to maintain necessary internal control associated with the preparation in order to ensure that the consolidated financial statements are free from material misstatement arising from fraud or error.

In preparing the consolidated financial statements, the management is responsible for assessing the ability of the Group in continuing as a going concern, disclosing relevant matters, and adopting the going concern basis of accounting unless the management intends to liquidate the Group or cease the operations without other viable alternatives.

The Group’s governing bodies (including the Audit Committee) are responsible for supervising the financial reporting process.

Auditor’s responsibilities for the audit of the consolidated financial statements

Our objectives are to obtain reasonable assurance on whether the consolidated financial statements as a whole are free from material misstatement arising from fraud or error and to issue an independent auditors’ report. Reasonable assurance is a high-level assurance but is not a guarantee that an audit conducted in accordance with the auditing standards will always detect a material misstatement when it exists. Misstatement may arise from frauds or error. If the amounts of misstatements, either separately or in aggregate, could reasonably be expected to influence the

economic decisions of the users of the consolidated financial statements, they are considered material.

We have exercised our professional judgment and professional skepticism when performing the audit work in accordance with the auditing standards. We also performed the following tasks:

Identified and assessed the risks of material misstatement arising from fraud or error within the consolidated financial statements; designed and executed countermeasures in response to said risks, and obtained sufficient and appropriate audit evidence to provide a basis for our opinion. Fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Therefore, the risk of not detecting a material misstatement resulting from fraud is higher than the one resulting from error.
Understood the internal control related to the audit in order to design appropriate audit procedures under the circumstances, while not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.
Evaluated the appropriateness of accounting policies adopted and the reasonableness of accounting estimates and relevant disclosures made by the management.
Concluded on the appropriateness of the management’s adoption of the going concern basis of accounting based on the audit evidence obtained and whether a material uncertainty exists for events or conditions that may cast significant doubt over the Group’s ability to continue as a going concern. If we are of the opinion that a material uncertainty exists, we shall remind users of the consolidated financial statements to pay attention to relevant disclosures in the said statements within our audit report. If such disclosures are inadequate, we need to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern.
Evaluated the overall presentation, structure, and content of the consolidated financial statements (including relevant notes), and whether the consolidated financial statements adequately present the relevant transactions and events.
Obtained sufficient and appropriate audit evidence concerning the financial information of entities within the Group, to express an opinion on the consolidated financial statements. We were responsible for guiding, supervising, and performing the audit and forming an audit opinion on the Group.

From the matters communicated with the governing bodies, we determined the key audit matters for the audit of the Group’s consolidated financial statements for the year ended December 31, 2023. We have clearly indicated such matters in the auditors’ report. Unless legal regulations prohibit the public disclosure of specific matters, or in extremely rare cases, where we decided not to communicate specific items in the auditors’ report for it could be reasonably anticipated that the negative effects of such disclosure would be greater than the public interest it brings forth.

Deloitte & Touche CPA Chen, Pei-Te

CPA Chen, Chun-Hung

Financial Supervisory Commission Approval Document No. Jin-Guan-Zheng-Shen-Zi No. 1080321204

Financial Supervisory Commission Approval Document No. Jin-Guan-Zheng-Shen-Zi No. 0990031652

March 13, 2024

PARPRO CORPORATION. and Its Subsidiaries

Consolidated Balance Sheet

December 31, 2023 and 2022

Unit: NTD thousand

Code 1100 1110 1172 1200 1220 130X 1410 11XX 1517 1550 1600 1755 1805 1821 1840 1990 15XX 1XXX Code 2100 2110 2120 2170 2219 2230 2250 2280 2320 2399 21XX 2530 2540 2570 2580 25XX 2XXX 3110 3200 3310 3320 3350 3300 3400 3500 3XXX	Assets Current assets Cash (Note 6) Financial assets at fair value through profit or loss (Note 7) Accounts receivable (Notes 9 and 27) Other receivables (Notes 9 and 27) Current income tax assets Inventories (Note 10) Prepayments Total current assets Non-current assets Financial assets at fair value through other comprehensive income (Note 8) Investments using the equity method (Notes 5 and 12) Property, plant and equipment (Note 13) Right-of-use assets (Notes 14 and 27) Goodwill (Notes 5 and 15) Intangible assets (Note 15) Deferred tax assets (Note 23) Other non-current assets Total non-current assets Total assets Liabilities and equity Current liabilities Short-term borrowings (Note 16) Short-term notes payable Financial liabilities at fair value through profit or loss (Note 7) Accounts payable Other payables (Notes 18 and 27) Current income tax liabilities Provisions Lease liabilities (Notes 14 and 27) Long-term liabilities – current portion (Notes 16 and 17) Other current liabilities (Notes 21 and 27) Total current liabilities Non-current liabilities Corporate bonds payable (Note 17) Long-term borrowings (Note 16) Deferred tax liabilities (Note 23) Lease liabilities (Notes 14 and 27) Total non-current liabilities Total liabilities Equity (Note 20) Ordinary share capital Capital surplus Retained earnings Legal reserve Special reserve Undistributed earnings Total retained earnings Other equity Treasury shares Total equity Total liabilities and equity		December 31, 2023 Amount % $ 195,552 5 8 - 650,982 18 1,090 - 11,863 - 1,195,798 33 66,777 2 2,122,070 58 48,448 1 590,166 16 133,121 4 189,491 5 462,304 13 66,993 2 1,536 - 20,972 1 1,513,031 42 $ 3,635,101 100 $ 293,608 8 30,000 1 7,880 - 310,868 9 126,385 3 25,790 1 1,113 - 40,018 1 90,621 2 32,922 1 959,205 26 422,685 12 92,650 3 20 - 157,416 4 672,771 19 1,631,976 45 983,789 27 642,138 18 141,737 4 33,051 1 225,535 6 400,323 11 23,125) ( 1) - - 2,003,125 55 $ 3,635,101 100		December 31, 2022	December 31, 2022
			Amount $ 195,552 8 650,982 1,090 11,863 1,195,798 66,777 2,122,070 48,448 590,166 133,121 189,491 462,304 66,993 1,536 20,972 1,513,031 $ 3,635,101 $ 293,608 30,000 7,880 310,868 126,385 25,790 1,113 40,018 90,621 32,922 959,205 422,685 92,650 20 157,416 672,771 1,631,976 983,789 642,138 141,737 33,051 225,535 400,323 23,125) - 2,003,125 $ 3,635,101		Amount $ 143,828 - 688,004 49,501 2,616 1,066,199 49,058 1,999,206 10,160 594,576 154,899 217,931 462,379 78,171 1,211 12,197 1,531,524 $ 3,530,730 $ 620,479 - 11,954 282,266 166,584 10,979 1,113 37,083 130,041 96,808 1,357,307 463,567 47,827 1,995 185,855 699,244 2,056,551 833,544 329,808 131,486 137,381 104,145 373,012 33,051) 29,134) 1,474,179 $ 3,530,730	%
		(		( (		4 - 20 2 - 30 1 57 - 17 5 6 13 2 - - 43 100 17 - - 8 5 - - 1 4 3 38 13 2 - 5 20 58 24 9 4 4 3 11 ( 1) ( 1) 42 100

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

Chairman: Liao, Wen-Chia Managerial Officer: Yen, Tsung-Chien

Chief Accounting Officer: Wu, Hsiu-Pi

PARPRO CORPORATION. and Its Subsidiaries

Consolidated Statement of Comprehensive Income

December 31, 2023 and 2022

Unit: In NTD thousand, except for earnings per share in NTD

Code 4100 Operating revenue (Notes 21 and 27) 5110 Operating costs (Notes 9, 10, and 22) 5900 Gross profit Operating expenses (Notes 9, 22, and 27) 6100 Selling expense 6200 Administrative expenses 6300 Research and development expenses 6450 Expected credit impairment loss (gain on reversal) 6000 Total operating expenses 6900 Net operating profit Non-operating income and expenses (Notes 22 and 27) 7100 Interest income 7010 Other income 7020 Other gains and losses 7050 Financial costs 7060 Share of profit and loss of associates using the equity method 7000 Total non-operating income and expenses 7900 Net income before tax 7950 Income tax expense (Note 23) 8200 Net income for 2023		2023	% 100 86 14 1 9 - ( 1) 9 5 - 1 - ( 2 ) - ( 1) 4 ( 1) 3		2022
						%
						100 84 16 1 12 - - 13 3 - 1 1 ( 2 ) 1 1 4 - 4

(Continued from the next page)

(Continued from the previous page)

Code Other comprehensive income 8310 Items not reclassified to profit or loss: 8316 Unrealized gains or losses on investment in equity instruments at fair value through other comprehensive income 8330 Share of other comprehensive income of associates using the equity method 8360 Items that may be reclassified subsequently to profit or loss: 8361 Exchange Differences in Translating the Financial Statements of Foreign Operations 8300 Other comprehensive income after tax for 2023 8500 Total comprehensive income for 2023 Earnings per share (Note 24) 9750 Basic 9850 Diluted		2023	% - - - - 3	2022
		Amount $ 8,306 5,432 4,037) 9,701 $ 90,021 $ 0.87 $ 0.73		Amount ( $ 7,300 ) 9,144 172,155 173,999 $ 273,512 $ 1.21 $ 1.07	%
	(				- - 6 6 10

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

Chairman: Liao, Wen-Chia Managerial Officer: Yen, Tsung-Chien Chief Accounting Officer: Wu, Hsiu-Pi

PARPRO CORPORATION. and Its Subsidiaries

Consolidated Statement of Changes in Equity

December 31, 2023 and 2022

Unit: NTD thousand

Share capital Ordinary share capital Share capital to be registered $ 834,516 $ 28 - - - - - - - - - - - - - - - - - - 28 ( 28 ) ( 1,000) - 833,544 - - - - - - - - - - - - - - - - - 161,495 - ( 11,250) - $ 983,789 $ -	Share capital Ordinary share capital Share capital to be registered $ 834,516 $ 28 - - - - - - - - - - - - - - - - - - 28 ( 28 ) ( 1,000) - 833,544 - - - - - - - - - - - - - - - - - 161,495 - ( 11,250) - $ 983,789 $ -	Capital surplus $ 310,881 - - - - - - - 28,740 ( 8,223 ) - ( 1,590) 329,808 - - - - - - - 31,291 281,039 - $ 642,138		Retained earnings		Other equity items Exchange Differences in Translating the Financial Statements of Foreign Operations Unrealized gain (loss) on financial assets at fair value through other comprehensive income ( $ 193,964 ) ( $ 10,095 ) - - - - - - - - - - 172,155 ( 1,147) 172,155 ( 1,147) - - - - - - - - ( 21,809 ) ( 11,242 ) - - - - - - - - - - ( 4,037) 13,963 ( 4,037) 13,963 - - - - - - ($ 25,846) $ 2,721	Other equity items Exchange Differences in Translating the Financial Statements of Foreign Operations Unrealized gain (loss) on financial assets at fair value through other comprehensive income ( $ 193,964 ) ( $ 10,095 ) - - - - - - - - - - 172,155 ( 1,147) 172,155 ( 1,147) - - - - - - - - ( 21,809 ) ( 11,242 ) - - - - - - - - - - ( 4,037) 13,963 ( 4,037) 13,963 - - - - - - ($ 25,846) $ 2,721	Treasury shares ( $ 31,724 ) - - - - - - - - - - 2,590 ( 29,134 ) - - - - - - - - - 29,134 $ -		Total equity
						Exchange Differences in Translating the Financial Statements of Foreign Operations ( $ 193,964 ) - - - - - 172,155 172,155 - - - - ( 21,809 ) - - - - - ( 4,037) ( 4,037) - - - ($ 25,846)
Ordinary share capital $ 834,516 - - - - - - - - - 28 ( 1,000) 833,544 - - - - - - - - 161,495 ( 11,250) $ 983,789			Legal reserve $ 120,889 10,597 - - 10,597 - - - - - - - 131,486 10,251 - - 10,251 - - - - - - $ 141,737	Special reserve $ 76,537 - 60,844 - 60,844 - - - - - - - 137,381 - ( 104,330 ) - ( 104,330) - - - - - - $ 33,051
( (	(	( (		( (	( ( ( ( ( ( ( (	( ( ( ( (	( ( ( (	( (	( ( ( ( (	$ 1,213,042 - - 32,892) 32,892) 99,513 173,999 273,512 28,740 8,223 ) - - 1,474,179 - - 34,900) 34,900) 80,320 9,701 90,021 31,291 442,534 - $ 2,003,125

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

Chairman: Liao, Wen-Chia

Managerial Officer: Yen, Tsung-Chien

Chief Accounting Officer: Wu, Hsiu-Pi

PARPRO CORPORATION. and Its Subsidiaries

Consolidated Statement of Cash Flows

December 31, 2023 and 2022

Code Net cash flow of operating activities A10000 Net income before tax A20010 Income and expenses A20100 Depreciation expense A20200 Amortization expense A20300 Expected credit impairment loss (gain on reversal) A20400 Net (gain) loss on financial instruments measured at fair value through profit or loss A20900 Financial costs A21200 Interest income A22300 Share of profit and loss of associates using the equity method A22500 Gain on disposal of property, plant and equipment A23700 Loss on inventory valuation loss and obsolescence (reversed) A24100 Unrealized foreign exchange gain A24200 Loss on repayment of convertible corporate bonds A29900 Government grants A30000 Net changes in operating assets and liabilities A31150 Accounts receivable A31180 Other receivables A31200 Inventory A31230 Prepayments A32150 Accounts payable A32180 Other payables A32230 Other current liabilities A33000 Cash inflow (outflow) from operations A33100 Interest received A33300 Interest paid A33500 Income tax paid AAAA Net cash inflows (outflows) from operating activities	2023 $ 140,671 82,476 11,329 ( 19,469 ) ( 7,834 ) 44,996 ( 898 ) 9,886 ( 78 ) ( 22 ) ( 1,612 ) - - 56,355 48,411 ( 140,385 ) ( 9,989 ) 28,702 14,855 ( 56,465) 200,929 898 ( 35,239 ) ( 56,121) 110,467	Unit: NTD thousand 2022 $ 107,741 81,919 10,838 10,756 4,003 54,009 ( 428 ) ( 30,420 ) ( 108 ) 34,362 ( 3,261 ) 6,175 ( 18,113 ) ( 285,266 ) ( 46,342 ) ( 236,871 ) 6,323 88,357 28,772 78,119 ( 109,435 ) 428 ( 38,243 ) ( 8,487) (155,737)

(Continued from the next page)

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Code Net cash flow of investing activities B00100 Financial assets at fair value through other comprehensive income acquired B02700 Property, plant and equipment acquired B02800 Proceeds from disposal of property, plant and equipment B03700 Increase in guarantee deposits paid B06800 Decrease in other non-current assets B07100 Increase in prepayments for business facilities B07600 Dividends from associates received BBBB Net cash outflow from investing activities Net cash flow of financing activities C00200 Decrease in short-term borrowings C00500 Increase in short-term notes payable C01200 Convertible corporate bonds issued C01300 Convertible corporate bonds repaid C01600 Long-term borrowings C01700 Long-term borrowings repaid C03700 Increase (decrease) in other payables C04020 Lease principal repaid C04500 Dividends paid to owners of the Company CCCC Net cash outflow from financing activities DDDD Effect of exchange rate changes on cash EEEE Net increase (decrease) in cash E00100 Opening balance of cash E00200 Ending balance of cash	2023 ( $ 29,982 ) ( 16,691 ) 249 ( 5,773 ) - ( 3,070 ) 3,990 ( 51,277) ( 327,386 ) 30,000 394,488 - 274,468 ( 237,765 ) ( 65,000 ) ( 40,945 ) ( 34,900) ( 7,040) ( 426) 51,724 143,828 $ 195,552	2022
		( $ 17,460 ) ( 2,302 ) 108 ( 206 ) 349 - 3,990 ( 15,521) ( 48,078 ) - 494,409 ( 425,500 ) 70,000 ( 101,036 ) 65,000 ( 36,971 ) ( 41,115) ( 23,291) 23,853 ( 170,696 ) 314,524 $ 143,828

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

Chairman: Liao, Wen-Chia Managerial Officer: Yen, Tsung-Chien Chief Accounting Officer: Wu, Hsiu-Pi

(Appendix 4)

PARPRO CORPORATION

2023 Earning distribution statement

Unit: NT$

PARPRO CORPORATION 2023 Earning distribution statement	Unit: NT
Opening Unappropriated Earnings	163,324,559
Investments accounted for using the equity method - defined benefit plan remeasurement recognized in retained earnings	(225,842)
Cancellation of treasury shares and adjustment to retained earnings	(17,884,452)
Adjusted Unappropriated Earnings	145,214,265
Net profit for the period	80,320,003
Legal surplus reserve (10%)	(8,009,416)
Special surplus reserve (withdrawal)	9,926,710
Distributable surplus for the current period	227,451,562
Assigned items:
Less: cash dividend (NT$ 0.4 /share)	(39,351,562)
Unappropriated Earnings at the end of the period	188,100,000

Note: The number of shares calculated for shareholder dividends is the actual number of 98,378,905 shares in circulation as of February 29, 2024.

(Appendix 5)

Director candidate information

In accordance with the provisions of Article 192-1 of the Company Act, the list of candidates for director is hereby proposed as follows,

Number	Identity	Name	Number of shares	Main experience (Education)	Current positions in the company and other companies
1	Director	Wu, Hsiupi	9,765	Shih Chien College Director of Materials, Yulin Technology Co., Ltd. Parpro Corporation/financial manager, special assistant Anderson Industrial Corp. /legal person director representative Parpro Corporation/Chief Financial Officer, Deputy General Manager	Parpro Corporation/Chief Financial Officer, Deputy General Manager AP Parpro, Inc./Legal Person Director Representative Parpro(Nevada) Inc./Representative of corporate director Pilot (Las Vegas) Inc./Corporate Director Representative Parpro Technologies, Inc. / Legal Person Director Representative Parpro Quality Inc/Legal Person Director Representative Efa Technologies Corporation/Legal Person Director Representative Shengde Co., Ltd./Director Anderson Merchandise Corporation/Director

28 -

AI assistant

PARPRO — Annual Report 2023

52437_rns_2024-06-06_c1d123f7-c862-420d-b6cc-2e5a0beb3fb5.pdf

Stock code ： 4916 PARPRO CORPORATION

Reference materials for various resolutions of the shareholders’ meeting in 2024

Election

2023 Annual Business Report

1. 2023 business results

Independent Auditor’s Report

To PARPRO CORPORATION.,

Audit opinion

Basis for audit opinion

Key audit matters

customers

Responsibilities of the management and the governing bodies for the parent company only financial statements

Auditor’s responsibilities for the audit of the parent company only financial statements

PARPRO CORPORATION.

Parent Company Only Balance Sheet

December 31, 2023 and 2022

PARPRO CORPORATION.

(Continued from the previous page)

PARPRO CORPORATION.

PARPRO CORPORATION.

Parent Company Only Statement of Cash Flows

December 31, 2023 and 2022

Unit: NTD thousand

(Continued from the previous page)

Representation Letter

Independent Auditor’s Report

To PARPRO CORPORATION.,

Audit opinion

Basis for audit opinion

Key audit matters

Other matters

Responsibilities of the management and the governing bodies for the consolidated financial statements

Auditor’s responsibilities for the audit of the consolidated financial statements

PARPRO CORPORATION. and Its Subsidiaries

Consolidated Balance Sheet

December 31, 2023 and 2022

PARPRO CORPORATION. and Its Subsidiaries

Consolidated Statement of Comprehensive Income

December 31, 2023 and 2022

PARPRO CORPORATION. and Its Subsidiaries

PARPRO CORPORATION. and Its Subsidiaries

Consolidated Statement of Cash Flows

December 31, 2023 and 2022

(Continued from the previous page)

PARPRO CORPORATION

2023 Earning distribution statement

Director candidate information

More from PARPRO

PARPRO Annual Report 2023