PI — Annual Report 2023

Dec 22, 2023

Pan-International Industrial Corp. and Subsidiaries

Consolidated Financial Statements and Auditors’

Report

2023 and 2022 (Stock code 2328)

Address: No. 97 Anxing Rd., Xindian District, New Taipei City

Tel.: (02)2211-3066

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

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Pan-International Industrial Corp. and Subsidiaries

2023 and 2022 Consolidated Financial Statements and Auditors’ Report

Table of Contents

Item I. Cover II. Table of Contents III. Declaration IV. Independent Auditors’ Report V. Consolidated Balance Sheet VI. Consolidated Comprehensive Income Statement VII. Consolidated Statement of Changes in Shareholders Equity VIII. Consolidated Statement of Cash Flows IX. Notes to Consolidated Financial Statements (I) Company History (II) The date and procedure for approval of the financial statements (III) Application of newly released and amended standards and interpretations (IV) Summary of Significant Accounting Policies (V) Sources of material aspects in accounting judgement, estimate, assumption and uncertainties (VI) Notes to important account items (VII) Related party transactions

Page No. 1 2 ~ 3 4 5 ~ 9 10 ~ 11 12 ~ 13 14 15 16 ~ 63 16 16 16 ~ 17 17 ~ 30 30 ~ 31 31 ~ 48 48 ~ 51

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Item (VIII) Pledged assets (IX) Significant contingent liabilities and unrecognized contractual commitment (X) Loss from major disasters (XI) Materiality after the reporting period (XII) Miscellaneous (XIII) Notes disclosure (XIV) Operating segments information	Page No. 51 51 ~ 52 52 52 52 ~ 60 60 ~ 61 61 ~ 63

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Pan-International Industrial Corp. and Subsidiaries

Declaration of Consolidated Financial Statement of Affiliates

In 2023 (from January 1, 2023 to December 31, 2023), the related entities that are required to be included in the preparation of the consolidated financial statements of the Company, under the “Criteria Governing the Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises” are the same as those defined in International Financial Reporting Standards (IFRS) No. 10 "Consolidated Financial Statements." In addition, the information which shall be disclosed in the combined financial statements of affiliated companies is included in the consolidated financial statements of the parent company. Consequently, there will be no separate preparation of combined financial statements of affiliated companies.

Your attention is requested

Company Name: Pan-International Industrial Corp.

Legal Representative: Lee, Kuang-Yao

March 13, 2024

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Auditors’ Report

(2024) Cai-Shen-Bao-Zi No. 23004346

To Pan-International Industrial Corp.

Audit Opinions

We have audited the consolidated balance sheet of December 31, 2023 and December 31, 2022, the consolidated comprehensive income sheet, consolidated statement of changes in equity, consolidated statement of cash flows from January 1 to December 31, 2023 and 2022, and the notes to the consolidated financial statements (including the summary of material accounting policies) of Pan-International Industrial Corp. and its subsidiaries (hereinafter “Pan-International Group”).

In our opinion, based on the result of our audit and the audit reports presented by other accountants (please refer to additional information section), all the material items prepared in these consolidated financial statements are in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), interpretations, and interpretation announcements recognized and promulgated by the Financial Supervisory Commission (FSC). Therefore, they are able to properly express the consolidated financial status of Pan-International Group in 2023 and as of December 31, 2022, and the consolidated financial performance and consolidated cash flows in 2023 and from January 1 2022 to December 31, 2022.

Basis of our opinions

We have conducted the audit according to the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and the Taiwan Standards on Auditing (TWSA). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of Consolidated Financial Statements. We are independent of Pan-International Group in accordance with the CPA Code of Professional Ethics of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. On the basis of the result

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of our audit and the audit reports presented by other certified public accountants, we believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis of our opinion

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Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the Group in 2023. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

The key audit matters of the consolidated financial statements of the year 2023 of Pan-International Group are as follows:

Assessment of the provision for valuation loss on inventory

Description

For additional information on the accounting policy of inventory valuation, refer to Note 4 (14) of the consolidated financial statements. For information on the uncertainty of accounting estimates and assumptions for inventory valuation, refer to Note 5 (2) of the consolidated financial statements. For a description of the inventory items, refer to Note 6 (5) of the consolidated financial statements. As of December 31, 2023, Pan-International Group recognized inventory loss and provision for valuation loss of inventory amounting to NT$3,868,193 thousand and NT$146,527 thousand, respectively.

Pan-International Group mainly produces and sells computer peripherals, automobile cable harness, industrial control and medical devices, among other related electronic products. Rapid changes in the technological environment allow for only a short life cycle of the inventory. In addition, the inventory is highly vulnerable to price fluctuations in the market. The result is devaluation due to falling prices of inventory, or the risk of phase out is higher. Pan-International Group measures the normal sale of inventory using the lower of the cost or the net realizable value. The above provision for the valuation of inventory loss is mainly based on obsolete items or damaged items of inventory. The net realizable value is based on the experience of handling obsolete items of inventory in the estimation.

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Because the amount of inventory of Pan-International Group is significant and the inventory covers a great variety of items, it requires human judgment in sorting out the obsolete or damaged items from the inventory. This requires further judgment in the audit. We therefore listed the provision for valuation loss of inventory of Pan-International Group as key audit matter.

The appropriate audit procedure

We have conducted the following audit procedures on the provision for valuation loss of obsolete or damaged inventory:

1. Assess to determine if the policies for recognizing the provision for valuation loss of inventory in the financial statement period is consistent and reasonable.

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1. Examine if the logic of the system of the inventory aging table for the valuation of inventory used by the management is appropriate, in order to confirm that the information presented in the financial statements is congruent with the policies.

2. Assess to determine if the provision for valuation loss of inventory is reasonable on the basis of the discussion with the management on the valuation of the net realizable value of the obsolete and damaged items of inventory and the supporting documents obtained.

Additional information - audits conducted by other auditors

Some of the subsidiaries of Pan-International Group included in the consolidated financial statements, were not audited by us for the financial statements of these companies. These financial statements were audited by other certified public accountants, and we have made adjustments to these financial statements to make them consistent in accounting policy and conducted necessary examination procedures. Therefore, the opinions on the aforementioned consolidated financial statements regarding the amount presented in the aforementioned financial statements of these subsidiaries before adjustment were based on the Auditors’ Report of other certified public accountants. The total assets of the aforementioned companies (including the investment by equity method) as of December 31, 2023 and 2022, amounted to NT$6,369,905 thousand and NT$6,461,095 thousand, respectively, accounting for 26% and 25% of the consolidated total assets, respectively. Revenue for the years ended December 31, 2023 and 2022, amounted to NT$8,334,576 thousand and NT$7,918,143 thousand, respectively, accounting for 33% and 30% of the consolidated net operating revenue, respectively.

Additional information - Issuance of Auditors’ Report on Parent Company Only Financial Statements

Pan-International Industrial Corp. has prepared the parent company only financial statements of 2023 and 2022. We have audited these statements and issued an unqualified opinion and additional information. Auditors’ Reports issued by other accountants are on record for reference.

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Responsibilities of Management and Those Charged with Governance for 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, the IFRS, IAS, IFRIC and SIC recognized and promulgated by the FSC and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements., management is responsible for assessing the ability of Pan-International Group to continue as a going concern, disclosing relevant matters, and using the going concern basis of accounting, unless management either intends to liquidate Pan-International Group or to cease operations, or has no realistic alternative but to do so.

Those charged with governance (including the Auditing Committee) are responsible for overseeing the financial reporting process of Pan-International Group.

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance refers to a high degree of assurance, but the audit performed according to the TWSA cannot guarantee that material misrepresentations in the Consolidated Financial Statements will be detected. Misstatements can arise from fraud or error. These are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The CPA has exercised professional judgment and skepticism when conducting audits under the TWSA. We also:

1. Identify and assess the risks of material misstatement of the consolidated financial

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statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

1. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control of Pan-International Group.

2. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

3. Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on PanInternational Group and its ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, 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 Pan-International Group to cease to continue as a going concern.

4. Evaluate the overall presentation, structure and content of the consolidated financial statements (including the notes to the statements), and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

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1. Obtain sufficient appropriate audit evidence regarding the financial information of the entities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the Group audit, and we are responsible for forming an audit opinion on the Group.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings (including any significant deficiencies in internal control that we identify during our audit).

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence (and where applicable, related safeguards).

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of Pan-International Group in 2023 and therefore are the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

PwC Taiwan

Yung-Chien Hsu

Independent Auditors

Jen-Chieh Wu

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Former Financial Supervisory Commission, Executive Yuan Approval No.: (1995)Tai-Cai-Cheng-VI No. 13377 Financial Supervisory Commission Approval No.: Jin-Guan-Cheng-Shen-Zi No. 1120348565 March 13, 2024

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Pan-International Industrial Corp. and its Subsidiaries Consolidated Balance Sheet December 31, 2023 and 2022

Assets	Note 6 (1) 6 (2) 6 (3) and 8 6 (4) 6 (4) 7 6 (5) 6 (6) 6 (3) and 8 6 (7) and 8 6 (8) and 8 6 (9) and 8 6 (10) and 8 6 (11) 6 (25) 6 (14)	D e c e m b e r 3 1 , 2 0 2 3 A m o u n t % $ 6,440,208 26 10,536 - 939,911 4 106,539 1 3,372,367 14 2,845,211 12 81,381 - 3,721,666 15 191,882 1 17,709,701 73 1,866,099 8 294,760 1 664,077 3 2,817,342 12 281,109 1 99,923 - 53,672 - 60,163 - 550,363 2 6,687,508 27 $ 24,397,209 100	Unit: NTD thousand D e c e m b e r 3 1 , 2 0 2 2 A m o u n t % $ 6,713,571 27 10,239 - 676 - 35,075 - 3,555,291 14 4,173,927 16 742,484 3 3,893,919 15 125,527 1 19,250,709 76 1,752,355 7 277,528 1 733,731 3 2,686,495 11 385,399 1 100,319 - 37,072 - 71,071 - 109,824 1 6,153,794 24 $ 25,404,503 100
		A m o u n t $ 6,440,208 10,536 939,911 106,539 3,372,367 2,845,211 81,381 3,721,666 191,882 17,709,701 1,866,099 294,760 664,077 2,817,342 281,109 99,923 53,672 60,163 550,363 6,687,508 $ 24,397,209	A m o u n t $ 6,713,571 10,239 676 35,075 3,555,291 4,173,927 742,484 3,893,919 125,527 19,250,709 1,752,355 277,528 733,731 2,686,495 385,399 100,319 37,072 71,071 109,824 6,153,794 $ 25,404,503
Current Assets 1100 Cash and cash equivalents 1110 Financial assets at FVTPL - Current 1136 Financial assets measured at after- amortization cost - Current 1150 Net notes receivable 1170 Net accounts receivable 1180 Accounts receivable - Related parties net 1200 Other receivables 130X Inventory 1470 Other current assets 11XX Total Current Assets Non-Current Assets 1517 Financial assets measured at fair value through other comprehensive income - Non-current 1535 Financial assets measured at after- amortization cost - Non-current 1550 Investment by equity method 1600 Property, plant, and equipment 1755 Right-of-use assets 1760 Net investment property 1780 Intangible asset 1840 Deferred tax assets 1900 Other non-current assets 15XX Total Non-Current Assets 1XXX Total assets

(continued)

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Pan-International Industrial Corp. and its Subsidiaries Consolidated Balance Sheet December 31, 2023 and 2022

LIABILITIES AND EQUITY

Unit: NTD thousand D e c e m b e r 3 1 , 2 0 2 3 D e c e m b e r 3 1 , 2 0 2 2 Note A m o u n t % A m o u n t % 6 (12) $ 565,372 2 $ 2,101,238 8 6 (20) and 7 181,376 1 273,608 1 1,041,396 4 356,341 2 3,739,360 15 3,839,452 15 7 1,599,870 7 1,511,347 6 6 (13) 1,218,638 5 1,642,799 7 176,348 1 335,586 1 7 38,957 - 89,159 - 26,295 - 23,204 - 8,587,612 35 10,172,734 40 6 (25) 370,515 2 346,399 1 7 60,745 - 99,595 1 30,128 - 16,408 - 461,388 2 462,402 2 9,049,000 37 10,635,136 42 6 (15) 5,183,462 21 5,183,462 21 6 (16) 1,503,606 6 1,503,606 6 6 (17) 1,401,022 6 1,269,138 5 1,385,207 6 1,072,435 4 5,343,835 22 5,255,632 21 6 (18) ( 1,410,735) ( 6) ( 1,385,208) ( 6) 13,406,397 55 12,899,065 51 6 (19) 1,941,812 8 1,870,302 7 15,348,209 63 14,769,367 58 9 11

Current liability 2100 Short-term borrowings 2130 Contractual liabilities - Current 2150 Notes payable 2170 Accounts payable 2180 Accounts payable - Related parties 2200 Other payables 2230 Current tax liabilities 2280 Lease liabilities - Current 2399 Other current liabilities - Other 21XX Total current liabilities Non-current liabilities 2570 Deferred tax liabilities 2580 Lease liabilities - Non-current 2600 Other non-current liabilities 25XX Total non-current liabilities 2XXX Total liabilities Equity attributable to owners of the parent company Share capital 3110 Common share capital Capital surplus 3200 Capital surplus Retained earnings 3310 Legal reserve 3320 Special reserve 3350 Undistributed earnings Other equities 3400 Other equities 31XX Total equity attributable to owners of the parent company 36XX Non-controlling interests 3XXX Total equity Significant Contingent Liabilities and Unrecognized Commitments Significant Subsequent Events

The attached notes to the consolidated financial report are part of this consolidated financial report. Please refer to them, too. Chairman: Lee, Kuang-Yao Managerial Officers: Tsai, Ming-Feng Accounting supervisor: Tai, Chih-Hao

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Pan-International Industrial Corp. and its Subsidiaries Consolidated Balance Sheet

December 31, 2023 and 2022

						Unit: NTD	thousand
3X2X	Total liabilities and equity	$	24,397,209	100	$	25,404,503	100

The attached notes to the consolidated financial report are part of this consolidated financial report. Please refer to them, too. Chairman: Lee, Kuang-Yao Managerial Officers: Tsai, Ming-Feng Accounting supervisor: Tai, Chih-Hao

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Pan-International Industrial Corp. and its Subsidiaries Consolidated Statements of Comprehensive Income January 1 to December 31, 2023 and 2022

Item

Unit: NTD thousand (except in NTD for earnings per share) 2 0 2 3 2 0 2 2 Note A m o u n t % A m o u n t % 6 (20) and 7 $ 25,634,258 100 $ 26,257,340 100 6 (5) (23) And 7 ( 22,459,093) ( 88) ( 22,977,604 ) ( 87) 3,175,165 12 3,279,736 13 6 (23) ( 290,760) ( 1) ( 305,104 ) ( 1) ( 806,589) ( 3) ( 737,376 ) ( 3) ( 477,370) ( 2) ( 416,502 ) ( 2) 12 (2) 1,021 - 478 - ( 1,573,698) ( 6) ( 1,458,504 ) ( 6) 1,601,467 6 1,821,232 7 161,120 1 95,027 - 6 (21) 69,975 - 184,276 1 6 (22) 140,461 - 5,732 - 6 (24) ( 60,407) - ( 41,231 ) - 6 (7) ( 70,824) - ( 8,603 ) - 240,325 1 235,201 1 1,841,792 7 2,056,433 8 6 (25) ( 351,959) ( 1) ( 490,034 ) ( 2)

4000 Operating revenue 5000 Operating cost 5900 Operating profit margin Operating expenses 6100 Selling and marketing expenses 6200 General and administrative expenses 6300 Research and development expenses 6450 Expected credit impairment gain 6000 Total operating expenses 6900 Operating profit Non-operating income and expense 7100 Interest income 7010 Other income 7020 Other gains and losses 7050 Financial costs 7060 Share of profits and losses of affiliated companies and joint ventures recognized by the equity method 7000 Total non-operating income and expenses 7900 Net income before tax 7950 Income tax expense

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8200 Net profit of the current period

Pan-International Industrial Corp. and its Subsidiaries Consolidated Statements of Comprehensive Income January 1 to December 31, 2023 and 2022

				Unit: NTD thousand
		(except		in NTD for earnings per share)
$	1,489,833	6	$	1,566,399 6

(continued)

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Pan-International Industrial Corp. and its Subsidiaries Consolidated Statements of Comprehensive Income January 1 to December 31, 2023 and 2022

Item

Unit: NTD thousand (except in NTD for earnings per share) 2 0 2 3 2 0 2 2 Note A m o u n t % A m o u n t % 6 (14) $ 2,344 - $ 8,470 - 6 (18) 151,168 - ( 708,066 ) ( 3) 6 (25) ( 469) - ( 1,695 ) - 153,043 - ( 701,291)( 3) 6 (18) ( 258,095) ( 1) 487,069 2 ( 258,095) ( 1) 487,069 2 ( $ 105,052) ( 1) ($ 214,222 ) ( 1) $ 1,384,781 5 $ 1,352,177 5 $ 1,256,710 5 $ 1,322,290 5 233,123 1 244,109 1

Items that will not be reclassified subsequently to profit or loss 8311 Remeasured value of defined benefit plan 8316 Unrealized evaluation profit and loss of equity instrument investment measured at fair value through other comprehensive income 8349 Income tax related to items not reclassified 8310 Total of items not reclassified to profit or loss Items that may be reclassified subsequently to profit or loss: 8361 Currency translation difference 8360 Total of items that may be reclassified subsequently to profit or loss: 8300 Other comprehensive income (net) 8500 Total comprehensive income in the current period NET PROFIT ATTRIBUTABLE TO: 8610 Owners of the parent company 8620 Non-controlling interests

The attached notes to the consolidated financial report are part of this consolidated financial report. Please refer to them, too.

Chairman: Lee, Kuang-Yao Managerial Officers: Tsai, Ming-Feng Accounting supervisor: Tai, Chih-Hao

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Pan-International Industrial Corp. and its Subsidiaries Consolidated Statements of Comprehensive Income January 1 to December 31, 2023 and 2022

Total comprehensive income attributable to: 8710 Owners of the parent company 8720 Non-controlling interests Earnings per share (EPS) 6 (26) 9750 Basic earnings per share 9850 Diluted earnings per share	$ 1,489,833 $ 1,233,017 151,764 $ 1,384,781 $	Unit: NTD thousand (except in NTD for earnings per share) 6 $ 1,566,399 6 4 $ 1,016,064 4 1 336,113 1 5 $ 1,352,177 5 2.42 $ 2.55 2.41 $ 2.54
	$

The attached notes to the consolidated financial report are part of this consolidated financial report. Please refer to them, too.

Chairman: Lee, Kuang-Yao Managerial Officers: Tsai, Ming-Feng Accounting supervisor: Tai, Chih-Hao ~20~

Pan-International Industrial Corp. and its Subsidiaries Consolidated Statement of Changes in Shareholders Equity January 1 to December 31, 2023 and 2022

Unit: NTD thousand

2022 Balance on January 1 Net profit of the current period Other comprehensive income recognized for the period Total comprehensive income in the current period Earnings distribution and provisions for 2021: Provision of legal reserve Reversal of special reserve Cash dividends Decrease in non-controlling interests The share capital returned from liquidation of the investee company exceeds the book value All changes in equities of subsidiaries are recognized Balance on December 31 2023 Balance on January 1 Net profit of the current period Other comprehensive income recognized for the period Total comprehensive income in the current period Earnings distribution and provisions for 2022: Provision of legal reserve Provision of special reserve Cash dividends	Note							Equitya	Equitya	Equitya	ttributable to ow	ne	rs of theparent co	rs of theparent co	mpany						Non-controlling interests		Total Equity
			Common share capital				Capital surplus						Retained earnings			Other equities				Total
				I	Capital reserve - ssuancepremium		Capital reserve - Treasury share transaction	Capital reserve - difference between the price and face value from the acquisition or disposal of equity with subsidiaries.			Legal reserve		Special reserve		Undistributed earnings	Currency translation difference		Unrealized Gain (Loss) on Financial Assets at Fair Value through Other Comprehensive Income
	6 (18) 6 (17) 6 (19) 6 (27) 6 (18) 6 (17)		$ 5,183,462 - - - - - - - - - $ 5,183,462 $ 5,183,462 - - - - - -		$ 1,402,318 - - - - - - - - - $ 1,402,318 $ 1,402,318 - - - - - -		$ 98,543 - - - - - - - - - $ 98,543 $ 98,543 - - - - - -		$ 2,745 - - - - - - - - - $ 2,745 $ 2,745 - - - - - -		$ 1,138,619 - - - 130,519 - - - - - $ 1,269,138 $ 1,269,138 - - - 131,884 - -	$ 1,349,724 - - - - ( 277,289 ) - - - - $ 1,072,435 $ 1,072,435 - - - - 312,772 -			$ 4,308,365 1,322,290 6,548 1,328,838 ( 130,519 ) 277,289 ( 518,346 ) - 41 ( 10,036 ) $ 5,255,632 $ 5,255,632 1,256,710 1,834 1,258,544 ( 131,884 ) ( 312,772 ) ( 725,685 )	($ 1,360,659 ) - 395,292 395,292 - - - - - - ($ 965,367 ) ($ 965,367 ) - ( 176,695 ) ( 176,695 ) - - -		$ 288,225 - ( 708,066 ) ( 708,066 ) - - - - - - ($ 419,841 ) ($ 419,841 ) - 151,168 151,168 - - -		$ 12,411,342 1,322,290 ( 306,226 ) 1,016,064 - - ( 518,346 ) - 41 ( 10,036 ) $ 12,899,065 $ 12,899,065 1,256,710 ( 23,693 ) 1,233,017 - - ( 725,685 )	$ 1,682,573 244,109 92,004 336,113 - - - ( 86,844 ) - ( 61,540 ) $ 1,870,302 $ 1,870,302 233,123 ( 81,359 ) 151,764 - - -	$ 14,093,915 1,566,399 ( 214,222 ) 1,352,177 - - ( 518,346 ) ( 86,844 ) 41 ( 71,576 ) $ 14,769,367 $ 14,769,367 1,489,833 ( 105,052 ) 1,384,781 - - ( 725,685 )

The attached notes to the consolidated financial report are part of this consolidated financial report. Please refer to them, too.

Chairman: Lee, Kuang-Yao

Managerial Officers: Tsai, Ming-Feng

Accounting supervisor: Tai, Chih-Hao

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Pan-International Industrial Corp. and its Subsidiaries Consolidated Statement of Changes in Shareholders Equity January 1 to December 31, 2023 and 2022

Unit: NTD thousand

Decrease in non-controlling interests Balance on December 31

Note							Equitya	Equitya	Equitya	ttributable to ow	ne	rs of theparent co	rs of theparent co	mpany							Non-controlling interests	Total Equity
		Common share capital				Capital surplus						Retained earnings				Other equities				Total
			I	Capital reserve - ssuancepremium		Capital reserve - Treasury share transaction	Capital reserve - difference between the price and face value from the acquisition or disposal of equity with subsidiaries.			Legal reserve		Special reserve		Undistributed earnings		Currency translation difference		Unrealized Gain (Loss) on Financial Assets at Fair Value through Other Comprehensive Income
6 (19)		- $ 5,183,462		- $ 1,402,318		- $ 98,543		- $ 2,745		- $ 1,401,022		- $ 1,385,207		- $ 5,343,835	- ($ 1,142,062 )			- ($ 268,673 )		- $ 13,406,397	( 80,254 ) $ 1,941,812	( 80,254 ) $ 15,348,209

The attached notes to the consolidated financial report are part of this consolidated financial report. Please refer to them, too.

Chairman: Lee, Kuang-Yao

Managerial Officers: Tsai, Ming-Feng

Accounting supervisor: Tai, Chih-Hao

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Pan-International Industrial Corp. and its Subsidiaries Consolidated Statement of Cash Flows January 1 to December 31, 2023 and 2022

Unit: NTD thousand

CASH FLOWS FROM OPERATING ACTIVITIES Income before income tax Adjustments income and expenses items Depreciation expenses and amortizations Expected credit impairment gains Net benefits of financial assets and liabilities measured at fair value through the income Interest expense Interest income Dividend income Share of profits and losses of affiliated companies recognized by the equity method Net loss from the disposal of property, plant and equipment Loss on disposal of investments Unrealized exchange loss Changes in assets/liabilities related to operating activities Net change in assets related to operating activities Financial assets and liabilities measured at fair value through the income Net notes receivable Net accounts receivable Accounts receivable - Related parties net Other receivables Inventory Other current assets Net change in liabilities related to operating activities Contractual liabilities Notes payable Accounts payable Accounts payable - Related parties Other payables Other current liabilities Other non-current liabilities Cash inflow from operations Income tax paid Net cash inflow from operating activities Cash flows from investing activities Acquisition of financial assets measured at after-amortization cost Refund of capital investment in financial assets measured at fair value through other comprehensive income Share capital returned from liquidation of the investee company Purchase property, plant and equipment assets Proceeds from disposal of property, plant and equipment Acquisition of intangible assets Decrease (increase) in refundable deposits Increase in other non-current assets Interest received Dividend received Net cash outflow from investment activities Cash flows from financing activities Increase in short-term borrowings Decrease in short-term borrowings Lease principal repayment Cash dividend payment Interest paid Number of cash dividends paid to non-controlling interests Acquisition of stock options in subsidiaries Net cash inflow (outflow) from financing activities Impact of changes in the exchange rate on cash and cash equivalents Increase (decrease) in cash and cash equivalents in the current

Note For the years ended December 31,2023 January 1 to December 3 1 , 2 0 2 2 $ 1,841,792 $ 2,056,433 6 (23) 631,778 603,492 12 (2) ( 1,021 ) ( 478 ) 6 (22) ( 10,630 ) ( 33,930 ) 6 (24) 60,407 41,231 ( 161,120 ) ( 95,027 ) 6 (21) ( 22 ) ( 87,266 ) 6 (7) 70,824 8,603 6 (22) 9,265 25,387 6 (22) 5,770 - - 82,895 9,910 35,518 ( 73,279 ) ( 10,168 ) 113,745 ( 561,481 ) 1,254,602 ( 828,967 ) 648,906 50,989 81,232 1,075,026 ( 70,233 ) 145,650 ( 92,232 ) ( 665,458 ) 702,415 291,829 ( 28,363 ) ( 1,109,377 ) 123,015 167,830 ( 339,344 ) 408,412 4,060 ( 3,597 ) 14,138 ( 2,628 ) 4,795,615 1,594,918 ( 360,029 ) ( 323,690 ) 4,435,586 1,271,228 ( 972,223 ) - 6 (6) 37,424 78,570 - 41 6 (28) ( 807,817 ) ( 958,816 ) 14,789 8,273 6 (11) ( 20,397 ) - 2,332 ( 284,930 ) ( 440,771 ) ( 39,137 ) 161,120 95,027 22 87,266 ( 2,025,521 ) ( 1,013,706 ) 6 (29) 5,009,072 8,736,973 6 (29) ( 6,582,507 ) ( 7,775,814 ) 6 (29) ( 78,865 ) ( 66,104 ) 6 (17) ( 725,685 ) ( 518,346 ) ( 60,407 ) ( 41,231 ) 6 (19) ( 80,254 ) ( 86,844 ) 6 (27) - ( 71,576 ) ( 2,518,646 ) 177,058 ( 164,782 ) 37,206 ( 273,363 ) 471,786

The attached notes to the consolidated financial report are part of this consolidated financial report. Please refer to them, too.

Chairman: Lee, Kuang-Yao

Managerial Officers: Tsai, Ming-Feng

Accounting supervisor: Tai, Chih-Hao

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Pan-International Industrial Corp. and its Subsidiaries Consolidated Statement of Cash Flows

January 1 to December 31, 2023 and 2022

period

Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period

Unit: NTD thousand For the years ended January 1 to December Note December 31 , 2023 3 1 , 2 0 2 2 6,713,571 6,241,785 $ 6,440,208 $ 6,713,571

The attached notes to the consolidated financial report are part of this consolidated financial report. Please refer to them, too.

Chairman: Lee, Kuang-Yao

Managerial Officers: Tsai, Ming-Feng

Accounting supervisor: Tai, Chih-Hao

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Pan-International Industrial Corp. and Subsidiaries Notes to consolidated financial reports 2023 and 2022

Unit: NTD thousand (unless otherwise noted)

I. Organization and operations

Pan-International Industrial Corp. (hereinafter referred to as the "Company") was incorporated in the Republic of China. The main operations of the Company and its subsidiaries (hereinafter referred to as the "Group") are the development, manufacturing, and sales of electronic signal cables, connectors, connecting wires, precision molds, various plugs, sockets for telecommunication communication, wireless Bluetooth, PCB and other computer peripheral products, medical device related products, industrial control products, automotive cable harnesses, automotive components and accessories, smart in-vehicle equipment, and other products .

II. The Authorization of Financial Reports

This Consolidated Financial Statement has been passed by the Board for announcement on March 13, 2024.

III. Application of Newly Released and Revised Standards and Interpretations

(I) The impact of adopting the new and revised International Financial Reporting Standards (IFRS) recognized and promulgated by the FSC

The following table sets forth the standards and interpretations for the new issues, amendments, and revisions of IFRS recognized and promulgated by the FSC for application in 2023:

New issued/amended/revised standards and interpretations Amendment to IAS 1 “Disclosure of Accounting Policies” Amendment to IAS 8 “Definition of Accounting Estimates” Amendments to IAS 12 regarding "Deferred Tax related to Assets and Liabilities arising from a Single Transaction" Amendments to IAS 12 "International Tax Reform - Pillar Two Model Rules"	Effective date of the release of the International Accounting Standards Board
	January 1, 2023 January 1, 2023 January 1, 2023 May 23, 2023

In addition to the following, the Group has assessed that the standards and interpretations above have no significant impact on the financial position and financial performance of the Group. Amendments to IAS 12 "International Tax Reform - Pillar Two Model Rules"

This amendment provides a temporary exception for the recognition or disclosure of deferred income tax arising from the legislation or substantive legislation for the implementation of the Pillar 2 model rules issued by the OECD. Enterprises are prohibited to recognize the deferred income tax assets and liabilities regarding the Pillar 2 income tax nor disclose the relevant information thereof.

• (II) Impact of not adopting the new and revised International Financial Reporting Standards approved by the FSC

The following table sets forth the standards and interpretations for the new issues, amendments,

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and revisions of International Financial Reporting Standards (IFRS) recognized by the FSC for application in 2024:

and revisions of International Financial Reporting Standards (IFRS) application in 2024:	recognized by the FSC for
New issued/amended/revised standards and interpretations Amendment to IFRS 16 "Lease Liabilities for Sale and Leaseback" Amendment to IAS 1 "Classification of current or non-current liabilities" Amendment to IAS 1 "Non-current liabilities with contract terms and conditions" Amendments to IAS 7 and IFRS 7 "Supplier Finance Arrangements"	Effective date of the release of the International Accounting Standards Board
	January 1, 2024 January 1, 2024 January 1, 2024 January 1, 2024

The Group has assessed that the standards and interpretations above have no significant impact on the financial position and financial performance of the Group.

(III) Impact of International Financial Reporting Standards issued by the International Accounting Standards Board not yet approved by the FSC

The following table summarizes the newly issued, amended, and revised standards and interpretations of International Financial Reporting Standards issued by the IASB but not yet recognized by the FSC:

recognized by the FSC:
New issued/amended/revised standards and interpretations Amendments to IFRS 10 and IAS 28 "Asset sales or investments between investors and their associated enterprises or joint ventures" IFRS 17 “Insurance contracts” Amendment to IFRS 17 “Insurance contracts” Amendment to IFRS 17 “Initial Application of IFRS 17 and IFRS 9 - Information Comparison” Amendments to IAS No. 21 "Lack of Exchangeability"	Effective date of the release of the International Accounting Standards Board
	To be decided by IASB January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2025

The Group has assessed that the standards and interpretations above have no significant impact on the financial position and financial performance of the Group.

IV. Summary of Significant Accounting Policies

The major accounting policies adopted in the preparation of this consolidated financial report are as follows. Unless otherwise stated, these policies apply consistently throughout the reporting period.

(I) Statement of compliance

The consolidated financial statements are compiled in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and the IFRS, IAS, SIC and IFRIC (hereinafter collectively referred to as IFRSs) endorsed by the FSC.

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(II) Basis of preparation

1. Except for the following important items, this consolidated financial report is prepared at historical cost:

2. (1) Financial assets and liabilities (including derivatives) are measured at fair value through income.

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

4. (3) Defined benefit liabilities are recognized according to the net amount of retirement fund assets minus the present value of defined benefit obligations.

5. The preparation of financial reports in accordance with IFRSs requires the use of some important accounting estimates. In the application of the Group’s accounting policies, the management also needs to use its judgment, involving items with high judgment or complexity, or major assumptions and estimates involving consolidated financial reports. Please refer to note 5 for details.

(III) Basis of consolidation

1. Principles for preparation of consolidated financial reports

2. (1) All subsidiaries of the group are included in the individual entities of the consolidated financial reports. Subsidiaries refer to individual entities (including structured individual entities) controlled by the group. When the group is exposed to or entitled to variable remuneration from participation in an individual entity, and can influence such remuneration through the power over the individual entity, the group controls such an individual entity. Subsidiaries are included in the consolidated financial reports from the date when the group obtains their control, and the merger is terminated from the date of loss of control.

3. (2) Intra-group transactions, balances and unrealized gains and losses have been eliminated. Necessary adjustments have been made to the accounting policies of the subsidiaries which are consistent with the policies adopted by the Group.

4. (3) Each component of profit or loss and other comprehensive income is attributed to the owners and non-controlling interests of the parent company; the total comprehensive income is also attributed to the owners and non-controlling interests of the parent company, even if it results in a deficit in the balance of non-controlling interests.

5. (4) If the change in the shareholding of a subsidiary does not result in a loss of control (transactions with a non-controlling interest), it is treated as an equity transaction, that is, a transaction with the owner. The difference between the adjustment amount of a noncontrolling interest and the fair value of the consideration paid or received is directly recognized under equity.

6. (5) When the group loses control over a subsidiary, the remaining investment in this subsidiary is re-measured at fair value and is regarded as the fair value of the originally recognized financial assets or the cost of the investment in the originally recognized affiliated enterprise or joint venture, and the difference between the fair value and the book value is recognized as the current profit and loss. All amounts previously recognized in other comprehensive income related to the subsidiary are reclassified as profit and loss.

7. Subsidiaries listed in the consolidated financial reports:

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Investor Pan-International Industrial Corp. Pan-International Industrial Corp. Pan-International Industrial Corp. Yann-Yang Investments Corp. Pan Global Holding Co., Ltd. Pan Global Holding Co., Ltd. Pan Global Holding Co., Ltd. Pan Global Holding Co., Ltd. Tekcon Electronics Corporation TEKCON BAHAMAS LTD	Name of subsidiary Pan-International Electronics Inc.(PIU) Pan Global Holding Co., Ltd. (PGH) Yann-Yang Investments Corp. Tekcon Electronics Corporation P.I.E. INDUSTRIAL BERHAD BEYOND ACHIEVE ENTERPRISES LTD. Team Union International Ltd. EAST HONEST HOLDINGS LIMITED TEKCON BAHAMAS LTD Tekcon Huizhou Electronics Co., Ltd.	Main Business Engaged in the import and sales of various electronic products. Engaged in reinvestment in the Asia Pacific and mainland China businesses, and production and manufacturing of electronic signal cables, connectors, and computer peripheral products. Engaged in the domestic investment business. Engaged in manufacturing and distribution of various electronic products. The holding company of the overseas reinvestment business. The holding company of the overseas reinvestment business. The holding company of the overseas reinvestment business. The holding company of the overseas reinvestment business. The holding company of the overseas reinvestment business. OEM manufacturing of	% of Ownership December 31, 2023 December 31, 2022 100 100 100 100 100 100 83.58 83.58 51.42 51.42 100 100 100 100 100 100 100 100 100 100	Expla nation
			December 31, 2023 100 100 100 83.58 51.42 100 100 100 100 100

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Investor TEKCON BAHAMAS LTD P.I.E. INDUSTRIAL BERHAD P.I.E. INDUSTRIAL BERHAD P.I.E. INDUSTRIAL BERHAD PAN- INTERNATIONA L ELECTRONICS (MALASIA) SDN. BHD. PAN- INTERNATIONA L ELECTRONICS (MALASIA) SDN. BHD. PAN- INTERNATIONA L WIRE & CABLE (MALASIA) SDN. BHD. BEYOND ACHIEVE ENTERPRISES LTD. Team Union International Ltd. EAST HONEST HOLDINGS LIMITED Pan-International Precision	Name of subsidiary CARBO ENTERPRISES LIMITED PAN- INTERNATIONAL WIRE & CABLE (MALASIA) SDN. BHD. PAN- INTERNATIONAL ELECTRONICS (MALASIA) SDN. BHD. PAN- INTERNATIONAL ELECTRONICS (THAILAND) CO., LIMITED. PAN- INTERNATIONAL CORPORATION (S) PTE. LIMITED. PIE ENTERPRISE (M) SDN. BHD. PIW ENTERPRISE (MALASIA) SDN. BHD. New Ocean Precision Component (Jiangxi) Co., Ltd. Pan-International Precision Electronic Co., Ltd. Honghuasheng Precision Electronics (Yantai) Co., Ltd. Pan-International Sunrise Trading Corp.	Main Business connectors and connection cables. The holding company of the overseas reinvestment business. Production and sales of electric cables. Production and sales of connection cables and electronic products. Production and sales of connection cables. Sales of connection wires and connectors. Sales of connection cables and electronic products. Sales of electric cables. Production and operation of various plugs, sockets, telecommunication systems, etc.. Production and sales of electric cables. PCB production and assembly, etc.. Production and sales of electrical cables, computer	% of Ownership December 31, 2023 December 31, 2022 - 100 100 100 100 100 100 100 30 100 100 100 100 100 100 100 100 100 100 100 100 100	Expla nation
			December 31, 2023 - 100 100 100 30 100 100 100 100 100 100
				(2) (1)

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Investor Electronic Co., Ltd. Pan-International Precision Electronic Co., Ltd. Pan-International Precision Electronic Co., Ltd. CJ Electric Systems Co., Ltd. CJ Electric Systems Co., Ltd. CJ Electric Systems Co., Ltd. CJ Electric Systems Co., Ltd. Ordos City Ruichang Electric System Co., Ltd.	Name of subsidiary CJ Electric Systems Co., Ltd. YiBing Pan- International Vehicle Wire Co., Ltd. Chaohu Ruichang Electric System Co., Ltd. Ordos City Ruichang Electric System Co., Ltd. Wuhu Herzhong Automotive Electronics Co., Ltd. Anqing Ruiyu Automotive Electrical System Co., Ltd. Anqing Ruiyu Automotive Electrical System Co., Ltd.	Main Business accessories, wireless Bluetooth, Turnkey, etc.. Manufacture and sales of automotive wiring harness products. Auto parts and accessories, smart vehicle equipment manufacturing, etc.. Manufacture and sales of automotive wiring harness products. Manufacture and sales of automotive wiring harness products. Manufacture and sales of automotive wiring harness products. Manufacture and sales of automotive wiring harness products. Manufacture and sales of automotive wiring harness products.	% of Ownership December 31, 2023 December 31, 2022 100 100 100 100 100 100 100 100 100 100 48.78 48.78 51.22 51.22	Expla nation
			December 31, 2023 100 100 100 100 100 48.78 51.22

(1)Pan-International Corporation (S) Pte Ltd. The Group did not subscribe in proportion to its shareholding, causing the shareholding to fall to 30%. As a result, the Group lost its control over PIS, so it will not be included in the consolidated financial statements from the date of loss of control.

• (2) CARBO ENTERPRISES LIMITED was dissolved and liquidated in August 2023.

• Subsidiaries not included in the consolidated financial reports: No such situation.

• Different adjustment and treatment methods of subsidiary accounting period: No such situation.

• Major limitation: No such situation.

• Subsidiaries with significant non-controlling interests in the group

The total uncontrolled equity of the Group as of December 31, 2023 and 2022 amounted to NT$1,941,812 and NT$1,870,302, respectively. The following is the information about the significant non-controlling interests of the Group and its subsidiaries:

Non-controlling interests December 31, 2023 December 31, 2022

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Name of subsidiary	Main business location Malaysia	Amount	Shareholdi ng percentage Amount Shareholdi ng percentage
P.I.E. INDUSTRI AL BERHAD		$ 1,910,332 49 $ 1,832,190 49

Summary financial information of subsidiaries:

Balance sheet

Balance sheet
Current Assets Non-Current Assets Current liability Non-current liabilities Net total assets Comprehensive Income Statement Income Net income before tax Income tax expense Net profit of the current period Other comprehensive income (after tax) Total comprehensive income in the current period Total comprehensive profit and loss attributable to non-controlling interests Cash Flow Statement Net cash inflow from operating activities Net cash outflow from investment activities Net cash (outflow) inflow from financing activities Effects of exchange rate changes on the balance of cash and cash equivalents Decrease in cash and cash equivalents in the current period Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period		December31,2023 $ 4,498,290 1,428,253 ( 1,922,596) ( 71,604) $ 3,932,343 2023 $ 8,320,550 601,724 ( 106,267) 495,457 ( 153,604) $ 341,853 $ 166,072 2023 $ 723,985 ( 291,376) ( 437,341) ( 17,719) ( 22,451) 438,891 $ 416,440		December31,2022
				$ 4,702,333 1,334,687 ( 2,204,321) ( 61,208)
				$ 3,771,491 2022
				$ 7,903,462 550,858 ( 76,440)
				474,418 184,932
				$ 659,350
				$ 320,312
				2022
				$ 149,676 ( 310,767) 56,396 24,651
				( 80,044)
				518,935
				$ 438,891

(IV) Foreign exchange conversion

1. This consolidated financial report is presented in NTD, the functional currency of the company, as the presentation currency.

2. Foreign currency transactions and balances

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• (1) Foreign currency transactions are converted into the functional currency at the spot exchange rate on the transaction date or measurement date, and the conversion difference arising from the conversion of such transactions is recognized as current profit and loss.

• (2) The balance of foreign currency monetary assets and liabilities shall be evaluated and adjusted at the spot exchange rate on the balance sheet date, and the conversion difference arising from the adjustment shall be recognized as the current profit and loss.

• (3) The balance of foreign currency non-monetary assets and liabilities measured at fair value through income shall be evaluated and adjusted according to the spot exchange rate on the balance sheet date, and the exchange difference arising from the adjustment shall be recognized as the current profit and loss; if the balance is measured at fair value through other comprehensive income, it shall be evaluated and adjusted according to the spot exchange rate on the balance sheet date, and the exchange difference arising from the adjustment shall be recognized in others comprehensive income; if it is not measured by fair value, it is measured according to the historical exchange rate on the initial trading day.

• (4) All exchange gains and losses are reported in "other gains and losses" in the income statement.

• Conversion of foreign operations

• (1) For all group individuals and affiliated enterprises whose functional currency is different from the presentation currency, their operating results and financial status shall be converted into the presentation currency in the following ways:

  • A. Assets and liabilities expressed on each balance sheet are converted at the closing exchange rate on that balance sheet date;

  • B. The income and expense losses expressed in each consolidated income statement are converted at the current average exchange rate; and

  • C. All exchange differences arising from the conversion are recognized in other comprehensive income.

• (2) When the foreign operation which is partially disposed of or sold is a subsidiary, the accumulated exchange difference recognized in other comprehensive income is returned to the non-controlling interest of the foreign operation on a pro-rata basis. However, if the Group still retains part of its interest in the aforementioned subsidiary, but has lost control of the subsidiary of the foreign operation, it shall be treated as a disposal of all the rights and interests of the foreign operation.

• (3) Goodwill and fair value adjustments arising from the acquisition of a foreign individual entity are treated as assets and liabilities of the foreign individual entity and are converted at the exchange rate at the end of the period.

(V) Classification criteria for current and non-current assets and liabilities

1. Assets that meet one of the following conditions are classified as current assets:

2. (1) The asset is expected to be realized in the normal business cycle or intended to be sold or consumed.

3. (2) Held mainly for trading purposes.

4. (3) Expected to be realized within 12 months after the balance sheet date.

5. (4) Cash or cash equivalents, except for those to be exchanged or used to settle liabilities in at least 12 months after the balance sheet date.

The Group classifies all assets that do not meet the conditions above as non-current.

1. Liabilities that meet one of the following conditions are classified as current liabilities:

2. (1) Those that are expected to be settled in the normal business cycle.

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• (2) Held mainly for trading purposes.

• (3) Expected to be settled within 12 months after the balance sheet date.

• (4) The repayment period cannot be unconditionally deferred to at least 12 months after the balance sheet date. The terms of the liabilities may be based on the choice of the counterparty; the fact that the liabilities are settled due to the issuance of equity instruments does not affect its classification.

The group classifies all liabilities that do not meet the above conditions as non-current.

(VI) Cash equivalents

Cash equivalents refer to short-term and highly liquid investments that can be converted into a fixed amount of cash at any time with little risk of change in value. Time deposits that meet the definition above and are held to meet short-term cash commitments in operation are classified as cash equivalents.

(VII) Financial assets at FVTPL

1. Financial assets that are not measured at amortized cost or at fair value through other comprehensive income.

2. The group adopts transaction day accounting for financial assets measured at fair value through income in compliance with trading practices.

3. The Group measures their fair value at the time of initial recognition, and the relevant transaction costs are recognized in profit or loss; subsequently, they are measured at fair value, and the profit or loss is recognized in profit or loss.

4. When the right to receive dividends is established, the economic benefits related to dividends are likely to flow in and the number of dividends can be measured reliably, and the group recognizes the dividend income in profit or loss.

(VIII) Financial assets at FVTOCI

1. Refers to an irrevocable choice at the time of initial recognition to report changes in the fair value of equity instrument investments that are not held for trading in other comprehensive income; or debt instrument investments that meet the following conditions at the same time:

2. (1) The financial asset is held under the business model to collect contractual cash flow and for sale.

3. (2) The cash flow generated on a specific date from the contractual terms of the financial assets is entirely the interest in the payment of the principal and the outstanding principal amount.

4. The group adopts transaction day accounting for financial assets measured at fair value through other comprehensive income in accordance with trading practices.

5. The group measures their fair value plus transaction costs at the time of original recognition, and is subsequently measured at fair value:

6. (1) Changes in the fair value of equity instruments are recognized in other comprehensive income. At the time of derecognition, the accumulated profits or losses previously recognized in other comprehensive income shall not be reclassified to profit or loss but transferred to retained earnings. When the right to receive dividends is established, the economic benefits related to dividends are likely to flow in and the number of dividends can be reliably measured, the group recognizes dividend income in profit or loss.

7. (2) Changes in the fair value of debt instruments are recognized in other comprehensive income, and the impairment loss, interest income, and foreign currency exchange gain

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or loss before derecognition are recognized in profit or loss. At the time of derecognition, the accumulated gain or loss previously recognized in other comprehensive income is reclassified from equity to profit or loss.

(IX) Financial assets measured at after-amortization cost

1. Refers to those who meet the following conditions at the same time:

2. (1) Holding the financial asset under the business model to collect the contractual cash flow.

3. (2) The cash flow generated on a specific date from the contractual terms of the financial assets is entirely the interest in the payment of the principal and the outstanding principal amount.

4. The group adopts transaction day accounting for financial assets measured at afteramortization cost in accordance with trading practices.

5. The group measures their fair value plus transaction cost at the time of original recognition. Subsequently, the effective interest method is adopted to recognize interest income and impairment loss in the current period according to the amortization procedure, and the profit or loss is recognized in profit and loss at the time of derecognition.

6. Due to the short holding period, the fixed deposits held by the group that does not conform to cash equivalents have an insignificant discount effect and are therefore measured by the investment amount.

(X) Accounts and notes receivable

1. Refer to accounts and notes which, according to the contract, have the unconditional right to receive the amount of consideration obtained from the transfer of goods or services.

2. For short-term accounts and notes receivable with unpaid interest, as they have little effect on discount, the group measures them based on the original invoice amount.

(XI) Impairment of financial assets

On each balance sheet date, the Group takes into account all reasonable and verifiable information (including forward-looking) for financial assets measured at amortized cost. If the credit risk does not increase significantly after the original recognition, the loss allowance is measured at 12 months expected credit loss; if the credit risk has increased significantly since the original recognition, the loss allowance is measured according to the expected credit loss amount during the duration; for accounts receivable that do not contain significant financial components or contract assets, the loss allowance is measured according to the expected credit loss amount in the period.

(XII) Derecognition of financial assets

When the group's contractual right to receive cash flows from financial assets lapses, the financial assets will be derecognised.

(XIII) Lessor’s lease transaction - Operating lease

Lease income from operating leases, after deducting any incentives given to the lessee, is amortized and recognized as current income on a straight-line method during the lease period.

(XIV) Inventory

Inventories are measured by the lower of cost and net realizable value, and the cost is determined by the weighted average method. The cost of finished products and work-inprogress includes raw materials, direct labor, other direct costs, and production-related

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manufacturing expenses (allocated according to normal production capacity), but does not include borrowing costs. When comparing whether the cost or the net realizable value is lower, the item-by-item comparison method is adopted. The net realizable value refers to the balance of the estimated selling price in the normal business process after subtracting the estimated cost that must be invested before completion and the estimated costs necessary to make the sale.

- (XV) Investment by equity method Affiliated enterprises

1. Affiliated enterprises refer to all individual entities in which the group has a significant influence on them but has no control over them. Generally, the group directly or indirectly holds more than 20% of their voting rights. The group's investment in affiliated enterprises is treated with the equity method and recognized at cost when acquired.

2. The group recognizes the share of profit or loss of the affiliated enterprise as the current income and recognizes the share of other comprehensive income after the acquisition as other comprehensive income. If the group's share of loss in any affiliated enterprise is equal to or exceeds its interest in the associated enterprise (including any other unsecured receivables), the group does not recognize any further loss, unless the group has a legal or constructive obligation to the associated enterprise or has made payments on its behalf.

3. When there is a change in equity from a related company that is not profit or loss or other comprehensive profit or loss and does not affect the shareholding ratio of the related company, the Group shall recognize the change in ownership as a “capital reserve” based on the shareholding ratio.

4. The unrealized gains and losses arising from the transactions between the group and its affiliated enterprises have been written off in proportion to the equity in the affiliated enterprises; unless there is evidence showing that the assets transferred by the transaction have been impaired, the unrealized losses will also be eliminated. Necessary adjustments have been made to the accounting policies of affiliated enterprises which are consistent with the policies adopted by the Group.

5. When the Group disposes of an associate, if there is a loss of significant influence over the associate, the accounting treatment of all amounts previously recognized in other comprehensive income related to the associate is the same as if the Group directly disposes of the relevant assets or liabilities, that is, if the interests or losses previously recognized as other comprehensive income will be reclassified as profit and loss when disposing of related assets or liabilities, then if there is a loss of significant influence over the associate, the profit or loss will be reclassified as profit or loss from equity. If the Group still has a significant influence on the affiliated enterprise, the amount previously recognized in other comprehensive income shall be transferred out in the above manner only in proportion.

6. If the Group loses its significant influence on the affiliated enterprise when it disposes the stake in the affiliated enterprise, the capital surplus associated with the affiliated enterprise will be moved to the income statement. If the Group retains its significant influence on the affiliated enterprise, profit or loss will be recognized according to the percentage of ownership disposed.

(XVI) Property, plant, and equipment

1. Property, plant and equipment are recorded based on the acquisition cost, and the relevant interest during the acquisition and construction period is capitalized.

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1. Subsequent costs are included in the book value of assets or recognized as a separate asset only when the future economic benefits related to the project are likely to flow into the Group and the cost of the project can be measured reliably. The book value of the reset part should be derecognized. All other maintenance costs are recognized in current profit or loss when incurred.

2. For property, plant and equipment, the cost model is adopted for the subsequent measurement. Except that land is not depreciated, the depreciation is calculated by the straight-line method according to the estimated service life. If the components of property, plant and equipment are significant, they are separately depreciated.

3. The Group reviews the residual value, service life, and depreciation method of each asset at the end of each fiscal year. If the expected value of the residual value or service life is different from the previous estimate, or the expected consumption pattern of the future economic benefits contained in the asset has changed significantly, then from the date of the change, it shall be handled in accordance with the provisions of the International Accounting Standard No. 8 "Accounting Policies, Changes and Errors in Accounting Estimates." The service life of each asset is as follows:

Buildings 15 ~ 51 years Equipment 3 ~ 9 years Others 1 ~ 6 years

(XVII) Lessee’s lease transaction - Right-of-use assets/lease liabilities

1. Lease assets are recognized as right-of-use assets and lease liabilities on the date they are available for use by the group. When the lease contract is a short-term lease or lease of a low-value target asset, the lease payment shall be recognized as an expense during the lease period by the straight-line method.

2. Lease liabilities are recognized at the present value of the lease payments that have not been paid at the beginning of the lease at the discounted current value of the group's incremental borrowing rate. Lease payments include fixed payments, less any lease incentives receivable.

Subsequently, the interest method is adopted and measured by the after-amortization cost, and interest expenses are provided during the lease period. When the lease period or lease payment changes but not due to contract modification, the lease liabilities will be reassessed and the right-of-use assets will be re-measured.

1. The right-of-use assets are recognized at cost on the lease start date, and the cost is measured based on the original amount of the lease liability.

The subsequent measurement is based on the cost model, and the depreciation expense is calculated when the service life of the right-of-use assets expire or the lease term expires, whichever is earlier. When the lease liabilities are reassessed, any re-measurement of the lease liabilities will be adjusted in the right-of-use assets.

(XVIII) Investment property

Investment property is recognized at the acquisition cost, and the cost model is adopted for the subsequent measurement. Except for land, depreciation is made on a straight-line method based on the estimated service life, and the service life is 15–51 years.

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(XIX) Intangible asset

1. Goodwill is generated by corporate acquisition based on the purchase method.

2. Computer software is recognized at acquisition cost, and amortized using the straight-line method over the estimated useful life of 3 - 10 years.

(XX) Impairment of non-financial assets

1. The group estimates the recoverable amount of assets with signs of impairment on the balance sheet date. When the recoverable amount is lower than its book value, the impairment loss is recognized. The recoverable amount refers to the fair value of an asset minus disposal cost or its right-of-use value, whichever is higher. Except for goodwill, when there is no impairment or reduction in the assets recognized in the previous year, the impairment loss will be reversed, but the book value of the assets increased by the reversal of the impairment loss shall not exceed the book value of the assets if the impairment loss is not recognized after deduction of the depreciation or amortization.

2. The recoverable amount of goodwill is regularly estimated. When the recoverable amount is lower than its book value, the impairment loss is recognized. The impairment loss of goodwill impairment will not be reversed in subsequent years.

3. Goodwill is allocated to cash-generating units for impairment testing. This allocation is based on the identification of the operating departments, and goodwill is allocated to cashgenerating units or groups of cash-generating units that are expected to benefit from the corporate merger that generates goodwill.

(XXI) Borrowings

Refers to short-term borrowings from a bank. The group measures their fair value minus transaction costs at the time of initial recognition, and subsequently, for any difference between the price after deducting transaction costs and the redemption value, the effective interest method is used to recognize interest expenses in profit and loss during the outstanding period according to the amortization procedure.

(XXII) Note payable and accounts payable

1. Refers to debts arising from the purchase of raw materials, commodities, or labor services on credit and notes payable due to business and non-business reasons.

2. For short-term accounts and notes payable that belong to unpaid interest, as the discounting effect is insignificant, the Group uses the original invoice amount to measure the value.

(XXIII) Financial liabilities measured at fair value through the income

1. It refers to financial liabilities that are incurred for the primary purpose of repurchasing in the near term and derivatives held for trading other than those designated as hedging instruments under hedging accounting.

2. The group measures their fair value at the time of initial recognition, and the relevant transaction costs are recognized in profit or loss; subsequently, they are measured at fair value, and the profit or loss is recognized in profit or loss.

(XXIV) Derecognition of financial liabilities

The Group will derecognize financial liabilities if the specified contractual obligation has

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been performed, canceled, or expired.

(XXV) The offset of financial assets and liabilities

When there is a legally enforceable right to offset the recognized amount of financial assets and liabilities, and the intention is to settle on a net basis or to realize assets and settle liabilities at the same time, the financial assets and financial liabilities can offset each other and be expressed in the net amount on the balance sheet.

(XXVI) Non-hedging derivatives and embedded derivatives

Non-hedging derivatives at the time of original recognition are measured at the fair value on the contract signing date, and recognized as financial assets or liabilities measured at fair value through income; subsequently, they are measured at fair value, and the profit or loss is recognized in profit or loss.

(XXVII) Employee welfare

1. Short-term employee benefits

Short-term employee benefits are measured by the non-discounted amount expected to be paid and recognized as expenses when the related services are provided.

1. Pension

2. (1) Defined allocation plan

For a defined allocation plan, the amount of pension funds to be allocated is recognized as the current pension cost on an accrual basis. Advance allocations are recognized as assets to the extent that cash is refundable or future payments are reduced.

• (2) Defined benefit plan

  • A. The net obligation under a defined benefit plan is calculated by discounting the future benefit amount earned by the employee in the current or past service, and the fair value of the plan asset is deducted from the present value of the defined benefit obligation on the balance sheet date. The net obligation of defined benefits is calculated annually by an actuary using the projected unit benefit method. The discount rate is determined by reference to the market yield of high-quality corporate bonds that are consistent with the currency and period of the defined benefit plan on the balance sheet date; in countries where there is no deep market for high-quality corporate bonds, the market yield of government bonds (on the balance sheet date) is used.

  • B. The remeasured amount arising from a defined benefit plan is recognized in other comprehensive income in the period in which it occurs and is expressed in retained earnings.

• Employee remuneration and director’s remuneration

Employee remuneration and director's remuneration are recognized as expenses and liabilities when they have legal or constructive obligations and the amount can be reasonably estimated. If there is any difference between the actual distribution amount and the estimated amount, it shall be treated as the change of accounting estimate.

(XXVIII) Income tax

1. Income tax expense includes current and deferred income tax. Income tax is recognized in profit or loss, except for income tax related to items included respectively in other

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comprehensive income or directly included in equity.

1. The group calculates the current income tax based on the tax rate enacted or substantively enacted on the balance sheet date by the country where the group operates and the taxable income is generated. The management assesses the status of income tax returns regularly with respect to the applicable income tax laws and regulations, and, where applicable, assesses income tax liabilities based on the amount of tax expected to be paid to the tax authorities. Undistributed earnings are subject to income tax in accordance with the income tax law, and the income tax expense of undistributed earnings shall be recognized in accordance with the actual distribution of earnings in the year following the year in which the earnings are generated, after the earnings distribution proposal is passed by the shareholders’ meeting.

2. Deferred income tax is recognized according to the temporary difference between the tax base of assets and liabilities and their book value in the consolidated balance sheet by using the balance sheet method. Deferred income tax liabilities arising from originally recognized goodwill are not recognized. If the deferred income tax comes from the originally recognized assets or liabilities in a transaction (excluding business merger), and the accounting profit or tax income (tax loss) is not affected at the time of the transaction nor does it generate a corresponding taxable and deductible temporary difference, then it is not recognized. If there is a temporary difference arising from the investment in subsidiaries and affiliated enterprises, the Group can control the reversal time point of the temporary difference, and the temporary difference is likely to not be reversed in the foreseeable future, then it will not be recognized. Deferred income tax is subject to the tax rate (and tax law) that has been enacted or substantively enacted on the balance sheet date and is expected to apply when the relevant deferred income tax assets are realized or the deferred income tax liabilities are settled.

3. Deferred income tax assets are recognized to the extent that the temporary differences are likely to be used to offset future taxable income, and the unrecognized and recognized deferred income tax assets are reassessed on each balance sheet date.

4. The current income tax assets and current income tax liabilities can be offset when there is a legal enforcement right to offset the recognized current income tax assets and liabilities and there is an intention to pay off on a net basis or to realize assets and liabilities at the same time. When there is a legal enforcement right to offset the current income tax assets and current income tax liabilities, and the deferred income tax assets and liabilities are generated by the same taxpayer, or different taxpayers of the same tax authority and each entity intends to pay off the assets and liabilities on a net basis or realize the assets and settle the liabilities at the same time, then the deferred income tax assets and liabilities can be offset against each other.

5. The portion of unused income tax deduction for deferred use generated from the procurement of equipment or technology, R&D spending and investment in equity shall be recognized as deferred income tax assets within the scope of using unused income tax deduction for taxation with a high probability in the future.

(XXIX) Dividend distribution

Cash dividends distributed to the Company’s shareholders are recognized as liabilities in the financial reports when the Company’s board of directors resolves a decision to distribute dividends. Stock dividends distributed to the Company’s shareholders are

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recognized as stock dividends to be distributed in the financial reports when the Company’s shareholders’ meeting resolves a decision to distribute stock dividends, and reclassified to ordinary shares on the record date of the issue of new shares.

(XXX) Revenue recognition

1. The Group manufactures and sells electronic components. Revenue from sales is recognized when the control of the product is transferred to the customer, that is, when the product is delivered to the buyer, the buyer has discretion over the price of the product, and the Group has no outstanding performance obligation that may affect the customer's acceptance of the product. When the product is delivered to the designated place, the risk of obsolescence and loss has been transferred to the customer, and the customer accepts the product according to the sales contract, or if there is objective evidence to prove that all acceptance criteria have been met. Accounts receivable are recognized when the goods are delivered to the customer. Since then, the Group has unconditional rights to the contract price, and the consideration can be collected from the customer after a certain period of time.

2. The terms of payment for sale transactions are usually due 30 to 120 days after the date of shipment. Since the time interval between the transfer of the promised goods or services to the customer and the customer's payment does not exceed one year, the Group has not adjusted the transaction price to reflect the time value of the currency.

(XXXI) Government subsidy

Government subsidy is recognized at fair value when it is reasonably certain that the enterprise will comply with the conditions attached to the government subsidy and will receive the subsidy. If the nature of the government subsidy is to compensate for the expenses incurred by the group, the government subsidy shall be recognized as the current income on a systematic basis during the period of the relevant expenses.

(XXXII) Operation departments

The Group's operating departments information is reported consistently with the internal management reports provided to major operational decision-makers. Major operational decision-makers are responsible for allocating resources to operating departments and assessing their performance.

V. Major Sources of Uncertainty in Significant Accounting Judgments, Estimates, and Assumptions

When the Group prepares the consolidated financial reports, the management has used its judgment to determine the adopted accounting policies and has made accounting estimates and assumptions based on the reasonable expectations of future events based on the situation on the balance sheet date. Significant accounting estimates and assumptions made may differ from the actual results. Historical experience and other factors will be considered for continuous evaluation and adjustment. These estimates and assumptions contain risk that may result in significant adjustments to the book values of assets and liabilities in the next fiscal year. Please provide a detailed description of the uncertainties of significant accounting judgments, estimates, and assumptions as follows:

(I) Important judgment for accounting policy adoption

Recognition of gross or net income

According to the type of transaction and its economic essence, the Group determines whether the nature of its commitment to customers is the performance obligation of providing specific

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goods or services by itself (i.e. the Group is the principal), or is the performance obligation of another party providing such goods or services (i.e. the Group is the agent). When the Group controls a particular product or service before transferring it to a customer, the Group acts as the principal and recognizes the total amount of consideration that it is expected to be entitled to receive for the transfer of the particular product or service as income. If the Group does not control the specific product or service before transferring it to customers, the Group acts as an agent to arrange for another party to provide the particular product or service to customers, and any fee or commission that the Group is entitled to receive via this arrangement is recognized as income.

The group determines whether it controls a particular product or service before it is transferred to a customer based on the following indicators:

1. Being responsible for fulfilling the promise of providing a particular product or service.

2. Bearing the inventory risk before transferring the particular product or service to the customer, or bearing the inventory risk after transferring the control.

3. Having the discretion to fix the price of a particular product or service.

(II) Important accounting estimates and assumptions

Inventory evaluation

Since inventory must be priced at the lower of the cost and net realizable value, the Group must use judgment and estimation to determine the net realizable value of inventory on the balance sheet date. Due to rapid changes in technology, the Group assesses the amount of inventory on the balance sheet due to normal wear and tear, obsolescence, or lack of market sales value, and reduces the inventory cost to the net realizable value. This inventory evaluation is mainly based on the estimated product demand in a specific period in the future, so significant changes may occur. Please refer to Note 6 (5) for the carrying amount of the Group’s inventory as of December 31, 2023.

VI. Notes to Important Account Items

(I) Cash and cash equivalents

Cash and cash equivalents
Cash on hand and working capital Checking and demand deposit accounts Time deposit Bond repos		December 31,2023 $ 654 4,886,887 972,390 580,277 $ 6,440,208		December 31,2022
				$ 741 4,607,881 1,855,202 249,747
				$ 6,713,571

1. The credit quality of the financial institutions with which the Group interacts is good, and the Group interacts with several financial institutions to diversify credit risks. The probability of default is expected to be very low.

2. For information on the Group’s pledged bank deposits, classified as financial assets measured at amortized cost, as of December 31, 2023 and 2022, please refer to Note 6 (3) and Note 8.

(II) Financial assets at FVTPL

Financial assets at FVTPL
Item Current items: Mandatory financial assets measured at fair value through income	December31,2023	December31,2022

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Open-end funds

$ 10,536 $ 10,239

1. The financial products held by the Group in 2023 and 2022 were recognized as net gains amounting to NT$10,630 and NT$33,930, respectively.

2. The Group has not pledged financial assets measured at fair value through income.

(III) Financial assets measured at after-amortization cost

Item Current items: Restricted bank deposits Pledged time deposits Total Non-current items: Ordinary corporate bonds Pledged time deposits Restricted bank deposits Total		December 31,2023 $ 936,314 3,597 $ 939,911 $ 290,000 4,760 - $ 294,760		December 31,2022
				$ - 676 $ 676 $ - 4,849 272,679 $ 277,528

Please refer to Note 8 for the Group's financial assets measured at amortized cost as collaterals.

(IV) Notes and accounts receivable

Note receivable Less: Allowance for impairment loss Total Accounts receivable Less: Allowance for impairment loss Total	December 31, 2023 $ 106,582 ( 43) $ 106,539 $ 3,377,206 ( 4,839) $ 3,372,367	December 31, 2022 $ 35,075 - $ 35,075 $ 3,560,514 ( 5,223) $ 3,555,291

1. The group does not hold any collateral.

The balance of accounts receivable and notes receivable as of December 31, 2023 and 2022 were generated from customer contracts. The balance of accounts and notes receivable from customer contracts on January 1, 2022, amounted to NT$2,933,483.

1. Without considering the collateral or other credit enhancements held, the maximum amount of exposure that best represents the credit risk of notes and accounts receivable of the Group as of December 31, 2023 and 2022, is the book value of each type of notes and accounts receivable.

2. Please refer to Note 12(2) for details of relevant credit risk information.

3. (V) Inventory

nventory
Raw materials Work in process Finished products		December 31,2023
		Cost Allowance for valuation losses		Book value
		$ 1,373,052 ($ 38,942) 890,306 ( 8,667) 1,604,835 ( 98,918) $ 3,868,193 ($ 146,527) December 31, 2022		$ 1,334,110 881,639 1,505,917 $ 3,721,666

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Raw materials Work in process Finished products		Cost Allowance for valuation losses	Cost Allowance for valuation losses		Bookvalue
		$ 1,410,711 993,314 1,663,402 $ 4,067,427	($ 23,541) ( 19,990) ( 129,977) ($ 173,508)		$ 1,387,170 973,324 1,533,425
					$ 3,893,919

The cost of inventory recognized as expense losses by the Group in the current period:

Cost of inventory sold Inventory valuation loss (rebound profit) Income from sales of scrap materials		2023 $ 22,578,622 ( 30,621) ( 88,908) $ 22,459,093		2022
				$ 23,046,535 26,679 ( 95,610)
				$ 22,977,604

Because the Group got rid off part of the inventory of which the net realizable value fell below the cost in 2023, the net realizable value of inventory rebounded.

(VI) Financial assets measured at fair value through other comprehensive income - Non-current

Item Non-current items: Equity instruments Listed and OTC stocks Non-listed, OTC, or emerging stocks Total		December 31,2023 $ 1,016,823 849,276 $ 1,866,099		December 31,2022
				$ 827,081 925,274
				$ 1,752,355

1. The Group has elected to classify its strategic equity investments as financial assets at fair value through other comprehensive profit or loss.

2. For information on changes in fair value recognized in other comprehensive income of the Group in 2023 and 2022, refer to Note 6 (18), other equities.

3. The Group did not pledge any of the financial assets measured at fair value through other comprehensive income on December 31, 2023 and 2022.

4. The shares of a listed company held by the Group were refunded due to capital decrease in 2023 and 2022, with the amounts of NT$37,424 and NT$78,570, respectively.

(VII) Investment by equity method

Investment by equity method
LONG TIME TECH. CO., LTD. Pan-International Corporation (S) Pte Ltd. (PIS)		December 31,2023 $ 662,973 1,104 $ 664,077		December 31,2022
				$ 733,731 -
				$ 733,731

1. The share of operating results of the Group’s recognized affiliated companies is summarized as follows:

as follows:
Current net profit (loss) of continuing business units Total comprehensive income in the current period		2023 ($ 70,824) ($ 70,824)		2022
				($ 8,603)
				($ 8,603)

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1. Pan-International Corporation (S) Pte Ltd. (PIS), a sub-subsidiary of the Group, conducted a cash capital increase in the first quarter of 2023. The Group did not subscribe in proportion to its shareholding in 2023, causing the shareholding to fall to 30%. As the Group is not the company’s single largest shareholder, indicating that the Group has no actual power to lead its relevant activities, the Group lost its control over PIS and only has significant influence on it.

2. The income in investment accounted under equity method entitled by the Group was recognized based on the evaluation of the audited financial statements of these affiliates covering the same period.

3. Please refer to Note 8 for details on investment by equity method that the Group had placed as collateral for contractual liabilities.

(VIII) Property, plant, and equipment

												Unfinished
											construction
												and
											equipment to
	Land		Buildings			Equipment				Others		be accepted			Total
January 1,
2023
Cost	$ 23,617		$	811,024		$	5,735,467		$ 881,950			$ 212,340		$	7,664,398
Cumulative
depreciation	-	(		453,224)	(		3,888,716)	(		635,963)		-	(		4,977,903)
	$ 23,617		$	357,800		$	1,846,751		$ 245,987			$ 212,340		$	2,686,495
2023
January 1	$ 23,617		$	357,800		$	1,846,751		$ 245,987			$ 212,340		$	2,686,495
Addition	-			112,038			367,053			132,492		133,910			745,493
Disposal	-	(		56)	(		14,815)	(		2,629)	( 6,554)		(		24,054)
Re-
classification	-			3,001			17,974			3,569	( 71,131)		(		46,587)
Depreciation
expenses	-	(		28,572)	(		395,749)	(		92,398)		-	(		516,719)
Net exchange
difference	109	(		15,077)	(		9,331)			5,827	( 8,814)		(		27,286)
December 31	$ 23,726		$	429,134		$	1,811,883		$ 292,848			$ 259,751		$	2,817,342
December 31,
2023
Cost	$ 23,726		$	902,497		$	5,841,688		$ 993,444			$ 259,751		$	8,021,106
Cumulative
depreciation	-	(		473,363)	(		4,029,805)	(		700,596)		-	(		5,203,764)
	$ 23,726		$	429,134		$	1,811,883		$ 292,848			$ 259,751		$	2,817,342
												Unfinished
											construction
												and
											equipment to
	Land		Buildings			Equipment				Others		be accepted			Total
January 1,
2022
Cost	$ 23,211		$	656,219		$	5,110,913		$ 789,034			$ 235,854		$	6,815,231
Cumulative
depreciation	-	(		394,779)	(		3,681,747)	(		585,793)		-	(		4,662,319)
	$ 23,211		$	261,440		$	1,429,166		$ 203,241			$ 235,854		$	2,152,912
2022
January 1	$ 23,211		$	261,440		$	1,429,166		$ 203,241			$ 235,854		$	2,152,912

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Addition Disposal Re- classification Depreciation expenses Net exchange difference December 31 December 31, 2022 Cost Cumulative depreciation	- - - - 406 $ 23,617 $ 23,617 - $ 23,617	20,930 - 87,376 ( 25,326) 13,380 $ 357,800 $ 811,024 ( 453,224) $ 357,800	681,673 ( 28,530) 125,511 ( 396,986) 35,917 $ 1,846,751 $ 5,735,467 ( 3,888,716) $ 1,846,751	115,849 95,918 ( 5,085) ( 45) 5,680 ( 129,134) ( 75,827) - 2,129 9,747 $ 245,987 $ 212,340 $ 881,950 $ 212,340 ( 635,963) - $ 245,987 $ 212,340	914,370 ( 33,660) 89,433 ( 498,139) 61,579
					$ 2,686,495
					$ 7,664,398 ( 4,977,903)
					$ 2,686,495

Please refer to note 8 for details of the group's pledged property, plant and equipment.

(IX) Lease transaction - Lessee

1. The underlying assets of the group include land, plants and buildings, and the terms of the lease contracts usually range from 1 to 5 years. The lease contracts are negotiated individually and contain various terms and conditions. There are no other restrictions except that the leased assets may not be used as a loan guarantee.

2. The lease term of office equipment and transportation equipment leased by the Group does not exceed 12 months.

3. The book value and recognized depreciation expense information of the right-of-use assets are as follows:

are as follows:
Land Building Land Building	December 31, 2023 Book value $ 185,570 95,539 $ 281,109 2023 Depreciation expenses $ 9,164 88,273 $ 97,437	December 31, 2022 Book value $ 202,154 183,245
		$ 385,399
		2022 Depreciation expenses $ 7,636 87,328
		$ 94,964

1. The increase in the group’s right-of-use assets in 2023 and 2022 amounted to NT$2,221 and NT$134,446 respectively.

2. The information on profit and loss items related to leasing contracts is as follows:

Items affecting current profit and loss Interest expenses on lease liabilities Expenses of short-term lease contracts	2023 $ 6,049 23,260	2022
		$ 8,501 16,086

The total cash outflow of the Group’s leases in 2023 and 2022 amounted to NT$108,174 and NT$90,691, respectively.

1. Please refer to Note 8 for details of the Group's right-of-use assets pledged as collateral.

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(X) Investment property

nvestment property
January 1, 2023 Cost Cumulative depreciation and impairment 2023 January 1 Depreciation expenses Net exchange difference December 31 December 31, 2023 Cost Cumulative depreciation and impairment January 1, 2022 Cost Cumulative depreciation and impairment 2022 January 1 Transfer Depreciation expenses Net exchange difference December 31 December 31, 2022 Cost Accumulated depreciation and impairment		Land $ 79,107 - $ 79,107 $ 79,107 - 56) $ 79,051 $ 79,051 - $ 79,051 Land		Buildings $ 108,215 ( 87,003) $ 21,212 $ 21,212 ( 1,584) 1,244 $ 20,872 $ 106,546 ( 85,674) $ 20,872 Buildings $ 211,248 ( 102,107) $ 109,141 $ 109,141 ( 87,376) ( 5,943) 5,390 $ 21,212 $ 108,215 ( 87,003) $ 21,212		Total
	(					$ 187,322 ( 87,003)
						$ 100,319
						$ 100,319 ( 1,584) 1,188
						$ 99,923
						$ 185,597 ( 85,674)
						$ 99,923
						Total
		$ 105,386 -				$ 316,634 ( 102,107)
		$ 105,386 $ 105,386 ( 27,147) - 868				$ 214,527
						$ 214,527 ( 114,523) ( 5,943) 6,258
		$ 79,107 $ 79,107 -				$ 100,319
						$ 187,322 ( 87,003)
		$ 79,107				$ 100,319

1. Rental income and direct operating expenses of investment property:

Rental income of investment property Direct operating expenses of investment property that generate rental income in the current period		2023 $ 20,610 $ 1,584		2022
				$ 35,979
				$ 5,943

The fair value of the investment property held by the Group on December 31, 2023 and 2022, amounted to NT$364,547 and NT$419,829, respectively, which was the valuation of the assessment by comparative method with the market transaction prices obtained by the Group. The result indicated Level 3 fair value.

3. Please refer to Note 8 for details of the group's pledged investment property.

(XI) Intangible asset

January 1, 2023 Cost	Computer software $ -	Goodwill $ 37,072	Total $ 37,072

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Accumulated amortization and impairment 2023 January 1 Addition Amortization expenses Net exchange difference December 31 December 31, 2023 Cost Accumulated amortization and impairment January 1, 2022 Cost Accumulated amortization and impairment 2022 January 1 Net exchange difference December 31 December 31, 2022 Cost Accumulated amortization and impairment	- $- $ - 20,397 ( 1,710) ( 1,156) $ 17,531 $ 20,397 ( 2,866) $ 17,531	- $ 37,072 $ 37,072 - - ( 931) $ 36,141 $ 36,141 - $ 36,141		- $ 37,072 $ 37,072 20,397 ( 1,710) ( 2,087) $ 53,672 $ 56,538 ( 2,866) $ 53,672 Goodwill	- $ 37,072 $ 37,072 20,397 ( 1,710) ( 2,087) $ 53,672 $ 56,538 ( 2,866) $ 53,672 Goodwill
					$ 36,218 -
					$ 36,218
					$ 36,218 854
					$ 37,072
					$ 37,072 -
					$ 37,072

1. The above-mentioned intangible assets - goodwill was mainly generated by the Group's merger with East Honest Holdings Limited by the acquisition method in 2012, and the indirect acquisition of its reinvested mainland China subsidiary Honghuasheng Precision Electronics (Yantai) Co., Ltd.

2. Goodwill is allocated to the Group's cash-generating units by operating segments. These are all electronic components and other segments. Please refer to Note 14 for details on information disclosure of operating segments.

3. Goodwill is allocated to the cash-generating units of the Group identified by operating segments. The recoverable amount is estimated based on the value in use, and the value in use is calculated based on the pre-tax cash flow forecast in the financial budget approved by the management. The recoverable amount of the Group based on the value in use exceeds the book value, so there is no impairment of goodwill.

(XII) Short-term borrowings

Short-term borrowings
Nature of the borrowings	December 31,2023		Interest Rate 3.6%-3.92% 3.92%-5.85% Interest Rate 2.41%-5.39%	Collateral
Bank borrowings - secured borrowings Bank loans - Credit loans Nature of the borrowings	$ 98,462 466,910 $ 565,372 December 31,2022	$ 98,462 466,910		Description 1. None. Collateral
		$ 565,372
Bank loans - Credit loans		$ 2,101,238		None.

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1. The credit contracts entered into between the Group and banks are the joint guarantee limits provided by the parent company for the subsidiary. Please refer to Note 13 for details.

2. As of December 31, 2023 and 2022, the Group's undrawn borrowing lines were NT$7,394,128, and NT$7,675,351, respectively.

(XIII) Other payables

Other payables
Salary, bonus, and employee remuneration payable Equipment payment payable Repair expenses payable Consumables payable Utility fees payable Others		December 31,2023 $ 562,961 129,870 58,443 50,612 28,814 387,938 $ 1,218,638		December 31,2022 $ 596,849 194,860 76,253 148,760 63,263 562,814 $ 1,642,799

(XIV) Pension

1. Measures for defined retirement benefits

2. (1) The company and Tekcon Electronics Corporation (hereinafter referred to as Tekcon) have in place measures for defined benefit retirement in accordance with the provisions of the Labor Standards Act, which applies to the service years of all regular employees before the implementation of the “Labor Pension Act” on July 1, 2005, and the subsequent service years of employees who choose to continue to apply the Labor Standards Act after the implementation of the “Labor Pension Act.” If an employee is eligible for retirement, the pension payment shall be based on the service years and the average monthly salary of the six months before retirement. Two base numbers shall be given for each full year of service within 15 years (inclusive), and one base number shall be given for each full year of service over 15 years, but the cumulative maximum is 45 base numbers. The Company and Tekcon respectively allocate 6% and 2% of the total salary to the retirement fund every month which is deposited with the trust department of the Bank of Taiwan in the name of the Labor Pension Fund Supervisory Committee. In addition, before the end of each year, the Company estimates the balance of the labor retirement reserve account mentioned in the above. If the balance is insufficient to pay the pension amount of the workers who meet the retirement conditions estimated in the next year according to the above calculation, the Company will provide funding to make up of the shortage before the end of March in the following year.

3. (2) The amount recognized at the balance sheet is specified below:

Present value of defined benefit obligation Fair value of plan assets Net defined benefit liabilities (asset) "Other non-current assets” listed in the table		December31,2023 $ 66,492 ( 77,594) ($ 11,102) $ 11,102		December31,2022 $ 86,252 ( 91,357) ($ 5,105) $ 5,105

• (3) Changes in net defined benefit (assets) liabilities are as follows:

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2023 Balance on January 1 Cost of service in current period Interest expense (income) Remeasurement: Return on plan assets (Note) Effect of the change in financial assumption Experience adjustment Appropriation of pension reserve Payment of pension Balance on December 31 2022 Balance on January 1 Cost of service in current period Interest expense (income) Remeasurement: Return on plan assets (Note) Impact of demographic assumption changes Effect of the change in financial assumption Experience adjustment Appropriation of pension reserve Payment of pension Balance on December 31	Present value of defined benefit obligation	Fair value of plan assets $ 91,357 - 1,077 92,434 788 - - 788 4,042 ( 19,670) $ 77,594 Fair value of plan assets $ 80,492 - 496 80,988 6,195 - - - 6,195 4,174 - $ 91,357	Net defined benefit liabilities
	$ 86,252 464 1,002 87,718 - 258 ( 1,814) ( 1,556) - ( 19,670) $ 66,492 Present value of defined benefit obligation		($ 5,105) 464 ( 75) ( 4,716) ( 788) 258 ( 1,814) ( 2,344) ( 4,042) - ($ 11,102) Net defined benefit liabilities
	$ 88,252 548 540 89,340 - ( 2) ( 3,047) 774 ( 2,275) - ( 813) $ 86,252		$ 7,760 548 44
			8,352 ( 6,195) ( 2) ( 3,047) 774
			( 8,470) ( 4,174) ( 813) ($ 5,105)

(Note) This does not include the amount contained in interest income or expense

(4) The defined benefit pension plan assets of the Company and Tekcon Electronics Corporation fall within the ratio and scope of items entrusted to the Bank of Taiwan in using the plan for investment in the year under appointment pursuant to Article 6 of the Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund (deposits in domestic and foreign financial institutions, investments in domestic and foreign listed or OTC equity securities or through private placement, and investments in domestic and foreign products through securitization of real estate). The Labor Pension Fund Supervisory Committee is responsible for the supervision of the use of the fund. In using the fund, the minimum return from annual

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account settlement shall not fall below the return from interest paid by local banks on 2-year time deposits. If there are insufficiencies, the national treasury shall make up the difference after approval by the competent authority. The Company and Tekcon Electronics Corporation have no right to participate in the operation and management of the fund, they cannot disclose the categories of the plan assets at fair value under IAS 19 and IAS 142. The fair value forming the total assets of the fund as of December 31, 2022 and 2021, is stated in the labor pension fund utilization report announced by the government for the respective years.

(5) The actuarial assumption of pension fund is specified below:

The Company Discount rate Salary increase rate in the future Tekcon Electronics Corporation Discount rate Salary increase rate in the future			2023 1.15% 2.00% 1.20% 2.00%			2022
						1.20% 2.00% 1.30% 2.00%

The assumption of the mortality rate in the future is based on the statistics released by relevant countries and estimation by experience.

The analysis of the change in the principal actuarial assumption and the influence on the present value of defined benefit obligation is shown below:

December 31, 2023 Effect on the present value of defined benefit obligations December 31, 2022 Effect on the present value of defined benefit obligations	Discount rate	Discount rate	Discount rate	Salary increase rate in the future	Salary increase rate in the future	Salary increase rate in the future
	Increase by 0.25% Decrease by 0.25%			Increase by 0.25% Decrease by 0.25%
		($ 1,059) ($ 1,300)	$ 1,090		$ 1,078 $ 1,323	($ 1,053)
			$ 1,337			($ 1,293)

The aforementioned sensitivity analysis is under the assumption that all other assumptions remain unchanged, in order to analyze the effect of a change in a single assumption. In practice, changes in several assumption could be linked. The sensitivity analysis is consistent with the method adopted for the net pension liabilities presented in the balance sheet.

The method and assumption adopted for the sensitivity analysis in current period is identical with the previous period.

• (6) The Group expected to appropriate $1,354 for payment to the retirement plan for 2024.

• (7) As of December 31, 2023, the weighted average duration of the pension plans of the Company and Tekcon Electronics Corporation were 6 years and 8 years, respectively.

• Regulations for the defined appropriation of pension fund

• (1) Since July 1, 2005, the company and Tekcon have formulated measures for defined retirement allocation in accordance with the “Labor Pension Act” which applies to employees of Taiwan nationality. For employees of the company and Tekcon who

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choose to apply the labor retirement pension system of the “Labor Pension Act”, 6% of their monthly salary is allocated as labor pension to the employee's personal account at the Labor Insurance Bureau. The payment of labor pension shall be based on the balance of the employee's individual pension account and the number of accumulated benefits and shall be paid in the form of monthly pension or lump sum pension payment.

• (2) The subsidiaries listed in the consolidated statements do not have their own retirement measures. Pan-International Electronics Inc., P.I.E. Industrial Berhad and its subsidiaries in mainland China shall allocate a certain percentage of their total salary to the mandatory provident fund in accordance with the local government's mandatory regulations, and be deposited in the independent account of each employee, and the pension of each employee is managed and arranged by the government. The companies mentioned above have no further obligations except for the monthly allocation.

• (3) In 2023 and 2022, the Group recognized pension cost amounting to NT$165,857 and NT$155,293, respectively, in accordance with the above regulations governing the recognition of pension fund.

(XV) Share capital

As of December 31, 2023, the authorized capital of the Company comprised 600,000,000 shares (including 30,000,000 shares under employee subscription warrants or subscription rights of convertible bonds); 518,346,282 shares were outstanding with a par value of NT$10 per share.

(XVI) Capital surplus

In accordance with the Company Act, the premium from the issuance of shares above par value and the capital reserve from the receipt of gifts may be used to make up for the losses. When the Company has no accumulated loss, new shares or cash shall be issued or paid in proportion to the original shares of the shareholders. In addition, according to the relevant provisions of the Securities and Exchange Act, when the capital reserve above is appropriated to capital, its total amount each year shall not exceed 10% of the paid-in capital. The company shall not use the capital reserve to make up for the capital loss unless the earnings reserve is still insufficient to make up for the capital loss.

(XVII) Retained earnings

1. According to the articles of association of the company, if there is any surplus in the annual final accounts, in addition to paying all taxes according to law, the company shall first make up for the losses of previous years, and then set aside 10% as the legal reserve. If there is still a surplus, it shall be retained or distributed according to the resolution of the shareholders' meeting.

2. The Company authorizes the Board of Directors to distribute all or part of the dividends and bonuses that shall be distributed, capital surplus, or legal reserves in cash, which shall be approved through a resolution by more than half of the directors present at a Board meeting attended by more than two-thirds of all directors, and the rule that a resolution by a shareholders' meeting is required as in the preceding paragraph shall not apply.

3. The Company is in a growth stage, and the dividend distribution policy shall be based on the Company's current and future investment environment, capital demand, domestic and foreign competition status, capital budget, and other factors, while taking into account the shareholders' interests and the Company's long-term financial planning. The shareholders'

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dividend shall be allocated from the cumulative distributable earnings and shall not be less than 15% of the distributable earnings of the current year, and the cash dividend ratio shall not be less than 10% of the total dividend.

1. The legal reserve shall not be used except to make up for the Company's losses and issuing new shares or paying cash in proportion to the original number of shares held by the shareholders. However, if new shares or cash are issued, the amount of such reserve shall exceed 25% of the paid-in capital.

2. When the Company distributes earnings, it is required by laws and regulations to set aside a special reserve for the debit balance of other equity items on the balance sheet date of the current year before distribution. When the debit balance of other equity items is subsequently reversed, the amount of reversal can be included in the earnings available for distribution.

3. The shareholders resolved to pass distribution of 2022 and 2021 earnings during the meetings held on June 9, 2023 and June 15, 2022; details are as follows:

Legal reserve Special reserve Cash dividends		2022		2021 Amount Dividend per share(NT$) $ 130,519 ( 277,289) 518,346 $ 1.00 $ 371,576
		Amount Dividend per share(NT$)		Amount
		$ 131,884 312,772 725,685 $ 1.40 $ 1,170,341

The above resolutions are no different from the resolutions of the Company's board of directors dated April 8, 2023 and March 22, 2022. Please visit the MOPS of the Taiwan Stock Exchange for details.

1. The Board of the Company passed the proposal for the distribution of earnings in 2023 on March 13, 2024, specified as follows:

March 13, 2024, specified as follows:
Legal reserve Special reserve Cash dividends		2023 Amount Dividend per share (NT$) $ 125,854 25,528 673,850 $ 1.30 $ 825,232
		Amount

(XVIII) Other items of equity

Other items of equity
January 1, 2023 Unrealized profit or loss of financial products - Group Currency conversion difference - Group December 31, 2023 January 1, 2022		Financial assets at FVTOCI		Adjustment for currencyconversion		Total
		($ 419,841) 151,168 -		($ 965,367) - ( 176,695)		($ 1,385,208) 151,168 ( 176,695) ($ 1,410,735) Total
		($ 268,673)		($ 1,142,062)
		Financial assets at FVTOCI		Adjustment for currencyconversion
		$ 288,225		($ 1,360,659)		($ 1,072,434)

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Unrealized profit or loss of financial products - Group Currency conversion difference - Group December 31, 2022 (XIX) Non-controlling interests	( 708,066) - ($ 419,841)	- 395,292 ($ 965,367)	( 708,066) 395,292 ($ 1,385,208)

(XIX) Non-controlling interests
January 1 Share of non-controlling interest: Net profit of the current period Remeasured value of defined benefit plan Conversion difference from the conversion of financial statements of a foreign operation Cash dividend payment Decrease in non-controlling interests December 31 (XX) Operating revenue Revenue from customer contracts				2023 1,870,302 233,123 41 81,400) 80,254) - ($ 1,941,812) 2023 25,634,258	( (		2022 1,682,573 244,109 227 91,777 86,844) 61,540) ($ 1,870,302) 2022
		( (	$			$
			$			$	26,257,340

The revenue of the Group is derived from goods and services transferred at a certain time point. Please refer to Note 14 for details of revenue.

Contractual liabilities

The contractual liabilities related to the contractual income recognized by the Group are as follows:

follows:	follows:	follows:	follows:	follows:	follows:
December 31, 2023 December 31, 2022 Contractual liabilities $ 181,376 $ 273,608 Recognized income of contract liabilities at the beginning of the period: 2023 Opening balance of contract liabilities recognized as income in the current period $ 168,825 $ (XXI) Other income 2023 Rental income $ 31,656 $ Dividend income 22 Subsidy income 28,254 Other income - Other 10,043 $ 69,975 $						January 1, 2022 $ 939,066 2022 660,280 2022
					$
			$ 31,656 22 28,254 10,043		$ $	45,927 87,266 44,221 6,862 184,276
			$ 69,975

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(XXII) Other gains and losses

er gains and losses
Net gains of financial assets and liabilities measured at fair value through the income Losses from the disposal of property, plant and equipment Net foreign currency conversion gain Loss on disposal of investments Others		2023		2022 $ 33,930 ( 25,387) 3,854 - ( 6,665) $ 5,732
		$ 10,630 ( 9,265) 144,784 ( 5,770) 82
		$ 140,461

(XXIII) Employee benefit, depreciation and amortization expenses

Bynature		2023 $ 3,271,040 89,051 166,246 237,679 $ 3,764,016 $ 615,740 $ 16,038		2022
Employee benefits expense Salary expenses Labor and national health insurance expenses Pension expenses Other HR expenses Depreciation expenses Amortization expenses				$ 2,933,295 76,851 155,885 222,384 $ 3,388,415 $ 599,046 $ 4,446

1. According to the articles of association of the company, if the company has any profit in the year (the so-called profit refers to the gains before deducting the distribution of employee remuneration and directors’ remuneration), it shall allocate no less than 5% of it as employee remuneration and no more than 0.5% as directors’ remuneration, which shall be distributed after the special resolution of the board of directors, and shall be reported to the shareholders' meeting. However, where the Company still has accumulated losses, amount shall be reserved for making up the accumulated loss first.

2. The Company’s remuneration to employees in 2023 and 2022 was estimated at NT$74,429 and NT$79,012, respectively. The remuneration to the Directors was estimated at NT$7,443 and NT$7,901, respectively. The aforementioned amount was presented as salary expense in the book.

The years 2023 and 2022 are based on the profit status as of the current period. It is estimated according to the proportion specified in the articles of association of the Company.

The amounts of employee remuneration and director's remuneration for 2022 were NT$79,012 and NT$7,901, respectively, which were consistent with the amounts recognized in 2022 financial statements and paid in cash. The unpaid 2022 employee remuneration and director's remuneration as of December 31, 2023 were in the amounts of NT$48,980 and NT$$18, respectively, and recognized in “Other payables”.

The above information on the remuneration of employees and directors approved by the Board of Directors of the Company can be obtained on MOPS.

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(XXIV) Financial costs

nancial costs
Interest expenses on bank loans Interest expenses on lease liabilities Other financial costs come tax 1. Income tax expense		2023 $ 50,991 6,049 3,367 $ 60,407		2022 $ 30,356 8,501 2,374 $ 41,231

(XXV) Income tax

(1) Components of income tax expenses:

2023 Income tax for the current period: Income tax arising from current income $ 343,461 Extra tax on undistributed earnings 7,425 Income tax over estimates of previous year ( 35,983) Total income tax for the current period 314,903 Deferred income tax: The original value and reversal of temporary differences 37,056 Income tax expense $ 351,959 (2) Other comprehensive income related income tax amount: 2023 Remeasurement of defined benefit obligation $ 469 2. Relation between income tax expense and accounting profit 2023 Calculation of income tax on earnings before taxation at the mandatory tax rate $ 579,221 Expenses to be removed under the tax law ( 36,290) Temporary difference not recognized as deferred income tax liabilities ( 142,134) Extra tax on undistributed earnings 7,425 Effect of investment deduction on income tax ( 20,280) Income tax over estimates of previous year ( 35,983) Income tax expense $ 351,959		2023			2022
		$ 343,461 7,425 ( 35,983)			$ 432,668 46,681 ( 44,744) 434,605 55,429 $ 490,034 2022 $ 1,695 2022 $ 618,461 ( 46,832) ( 82,094) 46,681 ( 1,438) ( 44,744) $ 490,034
		314,903
		37,056
		$ 351,959
		$ 579,221 ( 36,290) ( 142,134) 7,425 ( 20,280) ( 35,983)
		$ 351,959

1. Deferred income tax assets or liabilities under temporary difference and taxation loss are specified as follows:

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Deferred income tax assets: -Temporary difference: Provision for valuation loss on inventory Accrued salaries at end of period Others -Deferred tax liabilities: Return on foreign investment accounted for under the equity method Taxation difference in depreciations Unrealized currency exchange gains or losses Others Deferred income tax assets: -Temporary difference: Provision for valuation loss on inventory Pension reserve pending on appropriation Accrued salaries at end of period Others -Deferred tax liabilities: Return on foreign investment accounted for under the equity method Taxation difference in depreciations Unrealized currency exchange gains or losses Others				2023	2023
		January1 Recognized as income		Recognized as other comprehensive net income		Effect on foreign currency exchange differences December 31
		$ 26,928 19,665 24,478 $ 71,071 ($ 257,311) ( 86,093) ( 2,279) ( 716) ($ 346,399)	($ 15,794) 3,363 3,448 ($ 8,983) ($ 17,601) ( 12,057) 2,279 ( 694) ($ 28,073)		$ - - ( 407) ($ 407) $ - - - ( 62) ($ 62) 2022		($ 381) ( 889) ( 248) ($ 1,518) $ - 3,996 - 23 $ 4,019	$ 10,753 22,139 27,271 $ 60,163 ($ 274,912) ( 94,154) - ( 1,449) ($ 370,515)
	January1 Recognized as income			Recognized as other comprehensive net income		Effect on foreign currency exchange differences December31
	$ 25,929 1,920 ( 19,179 ( 26,540 $ 73,568 ($ 216,284) ( 72,577) ( 678) ( 1,013) ( ($ 290,552)		$ 289 350) 139) ( 2,581) ($ 2,781) ($ 41,027) ( 9,711) ( 1,601) 309) ($ 52,648)		$ - ( 1,349) - - ($ 1,349) $ - - - ( 346) ($ 346)		$ 710 - 625 298 $ 1,633 $ - ( 3,805) - 952 ( ($ 2,853)	$ 26,928 221 19,665 24,257 $ 71,071 ($ 257,311) ( 86,093) ( 2,279) 716) ($ 346,399)

1. As of December 31, 2023 and 2022, the Company assessed that the temporary difference of tax payable on some of the subsidiaries will not be reversed in the foreseeable future, and recognized all these differences as deferred income tax liabilities. The unrecognized temporary difference of deferred income tax liabilities amounted to NT$6,859,001and NT$6,317,727, respectively.

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1. The corporate income tax return of the Company has been approved by the tax collection authorities up to 2021.

2. The Group has applied the exceptions for the deferred income tax assets and liabilities related to the income tax of Pillar 2, and the disclosure of its related information.

(XXVI) Earnings per share (EPS)

arnings per share (EPS)
Basic earnings per share Net income for the period attributable to the common shareholders of the parent company Diluted earnings per share Net income for the period attributable to the common shareholders of the parent company Dilutive effects of the potential common shares- Employee remuneration Net income for the period attributable to the common shareholders of the parent company Plus effect of potential common shares Basic earnings per share Net income for the period attributable to the common shareholders of the parent company Diluted earnings per share Net income for the period attributable to the common shareholders of the parent company Dilutive effects of the potential common shares- Employee remuneration Net income for the period attributable to the common shareholders of the parent company Plus effect of potential common shares			2023
	After-tax amount $ 1,256,710 1,256,710 - $ 1,256,710 After-tax amount $ 1,322,290 1,322,290 - $ 1,322,290		The weighted average number of outstanding shares(1000shares) 518,346 518,346 2,520 520,866 2022		Earnings per share (EPS) (NT$)
						$ 2.42
						$ 2.41
			The weighted average number of outstanding shares(1000 shares) 518,346 518,346 2,603 520,949		Earnings per share (EPS) (NT$)
						$ 2.55
						$ 2.54

(XXVII) Transactions with non-controlling interests

Dongguan Pan-International Precision Electronics Co., Ltd., a 2nd-tier subsidiary of the Company, acquired an additional 20% shares in circulation of CJ Electric Systems Co., Ltd. in the third quarter of 2022 worth RMB 16,000 thousand in cash. The book value of

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non-controlling interests of CJ Electric Systems Co., Ltd. was $61,540 as of the date of acquisition. For the specific transaction, non-controlling interests lost were worth $61,540 and equity attributable to owners of the parent company dropped by $10,036. Impacts of the changes in the equity of CJ Electric Systems Co., Ltd. for the fourth quarter of 2022 on the equity attributable to the owners of the parent company are as follows:

Book value of acquired non-controlling interests Consideration paid to non-controlling interests Retained earnings - All changes in equities of subsidiaries are recognized	$ (	2022 61,540 71,576) 10,036)
	($

(XXVIII) Supplementary information on cash flow

Investment activities with partial cash payment:

Purchase of property, plant and equipment Add: equipment payable at the beginning of the period Less: equipment payable at the end of the period Effect on foreign currency exchange differences Cash paid during the period		2023 $ 745,493 194,860 ( 129,870) ( 2,666) $ 807,817		2022 $ 914,370 235,818 ( 194,860) 3,488 $ 958,816

(XXIX) Changes in liabilities from financing activities

January 1 Changes in financing cash flow Effect of exchange rate changes Other non-cash changes December 31		2023 Short-term borrowings Lease liabilities Total liabilities from financing activities $ 2,101,238 $ 188,754 $ 2,289,992 ( 1,573,435) ( 78,865) ( 1,652,300) 37,569 ( 1,725) 35,844 - ( 8,462) ( 8,462) $ 565,372 $ 99,702 $ 665,074	2023 Short-term borrowings Lease liabilities Total liabilities from financing activities $ 2,101,238 $ 188,754 $ 2,289,992 ( 1,573,435) ( 78,865) ( 1,652,300) 37,569 ( 1,725) 35,844 - ( 8,462) ( 8,462) $ 565,372 $ 99,702 $ 665,074
		Short-term borrowings Lease liabilities
		$ 2,101,238 ( 1,573,435) 37,569 - $ 565,372	$ 188,754 ( 78,865) ( 1,725) ( 8,462) $ 99,702
		$ 565,372

January 1 Changes in financing cash flow Effect of exchange rate changes Other non-cash changes December 31		2022 Short-term borrowings Lease liabilities Total liabilities from financing activities $ 1,028,206 $ 166,173 $ 1,194,379 961,159 ( 74,605) 886,554 111,873 2,568 114,441 - 94,618 94,618 $ 2,101,238 $ 188,754 $ 2,289,992	2022 Short-term borrowings Lease liabilities Total liabilities from financing activities $ 1,028,206 $ 166,173 $ 1,194,379 961,159 ( 74,605) 886,554 111,873 2,568 114,441 - 94,618 94,618 $ 2,101,238 $ 188,754 $ 2,289,992
		Short-term borrowings Lease liabilities
		$ 1,028,206 961,159 111,873 - $ 2,101,238	$ 166,173 ( 74,605) 2,568 94,618 $ 188,754
		$ 2,101,238

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VII. Related Party Transactions

(I) Related party’s name and relationship

Related party’s name and relationship
Related PartyName	Relationship with the Group
Hon Hai Precision Industry Co., Ltd. and subsidiaries (Hon Hai and subsidiaries) Sharp Corporation and subsidiaries (Sharp and subsidiaries) Foxconn Technology Co., Ltd. and subsidiaries (FTC and subsidiaries) General Interface Solution Limited Cyber TAN Technology, Inc and Subsidiaries Chery Holding Group and Subsidiaries ENNOCONN CORPORATION LONG TIME TECH. CO., LTD. Pan-International Corporation (S) Pte Ltd. (PIS)	With significant influence on the group Other related parties Other related parties Other related parties Other related parties Other related parties (Note 1) Other related parties Affiliates Affiliate (Note 2)

(Note 1) Listed as non-related party in September 2022

(Note 2) The Group has lost control over it since March 2023 but still has significant influence on it, so it is an affiliate of the Group.

(II) Major transactions with related parties

1. Operating revenue

Operating revenue
With significant influence on the group - Hon Hai Precision Industry Co., Ltd. and subsidiaries Other related parties - Sharp and subsidiaries - Others Affiliates			2023			2022 $ 7,113,019 2,125,811 1,762,340 - $ 11,001,170
			$ 5,742,428 3,216,729 350,602 881
			$ 9,310,640

The price and loan period were determined by both sides after consultation, except where there is no similar transaction for reference. For the remainders of the Group’s sale to abovementioned related parties, the price is similar to the sale price of other general customers. The Group’s period of payment for the related parties ranged from 30 to 120 days.

2. Purchase

With significant influence on the group - Hon Hai Precision Industry Co., Ltd. and subsidiaries Other related parties - Foxconn Technology Co., Ltd. and subsidiaries - Others	2023 $ 2,856,395 2,288,555 -	2022 $ 2,524,393 1,492,196 63

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Affiliates	5,937 $ 5,150,887	- $ 4,016,652

The above amount includes purchase, discount, and return. The purchase price and payment term were determined by both sides through consultation. The payment term offered by the Group to related parties ranged EOM 30 to 120 days of open account.

3. Receivables from related parties

Receivables from related parties
With significant influence on the group - Hon Hai Precision Industry Co., Ltd. and subsidiaries Other related parties - Sharp and subsidiaries - Others Affiliates Less: Allowance for impairment loss		December 31,2023 $ 1,846,268 945,771 54,057 274 2,846,370 1,159) $ 2,845,211		December 31,2022 $ 3,165,783 788,580 221,535 - 4,175,898 ( 1,971) $ 4,173,927
	(

The receivables from related parties were mainly from sales and purchases on behalf of the related parties. The payment term for sales to related parties ranged from 30 to 120 days. The receivables are not secured and not interest bearing.

4. Accounts payables from related parties

With significant influence on the group - Hon Hai Precision Industry Co., Ltd. and subsidiaries Other related parties - Foxconn Technology Co., Ltd. and subsidiaries		December31,2023 $ 1,029,857 570,013 $ 1,599,870		December31,2022 $ 1,059,124 452,223 $ 1,511,347

Accounts payable from related parties mainly comes from purchasing and purchase on behalf of others, and there is no interest attached to the accounts payable.

5. Contractual liabilities

Contractual liabilities
With significant influence on the group - Hon Hai Precision Industry Co., Ltd. and subsidiaries Other related parties		December31,2023		December31,2022 $ 105,098 157 $ 105,255
		$ 63,987 -
		$ 63,987

The preceding contract liabilities of NT$63,987 and NT$101,310 dated December 31, 2023, and 2022 are guaranteed by the Group's investment by equity method, and the number of pledged shares is 7,812,500 shares. Please refer to Note 8 for details.

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6. Lease transaction - Lessee

• (1) The group leases the plant from the group which has a significant impact on the group. The lease term is 5 years. The rent is paid at the end of each month.

• (2) Lease liabilities:

• A. Ending balance

ease liabilities: A. Ending balance
With significant influence on the group B. Interest expenses With significant influence on the group		December 31,2023 $- 2023 $ 586		December 31,2022
				$ 39,286
				2022
				$ 1,658

(III) Compensation of key management personnel

Short-term employee benefits Post-employment benefits Total		2023 $ 13,897 240 $ 14,137		2022
				$ 14,599 240
				$ 14,839

VIII.Pledged Assets

The details of the guarantees provided with the group's assets are as follows:

Asset item	Bookvalue December 31,2023 December 31,2022 $ 939,911 $ 676 4,760 277,528 32,422 39,126 10,257 10,171 52,759 55,309 184,983 204,721 $ 1,225,092 $ 587,531	Bookvalue December 31,2023 December 31,2022 $ 939,911 $ 676 4,760 277,528 32,422 39,126 10,257 10,171 52,759 55,309 184,983 204,721 $ 1,225,092 $ 587,531	Guaranteepurpose
Pledged time deposits and restricted banks Deposits (listed as financial assets measured at after-amortization cost - Current) Pledged time deposits and restricted banks Deposits (listed as financial assets measured at after-amortization cost - non-current) Property, plant, and equipment Investment property Right-of-use assets Investment by equity method (Long Time Technology)		$ 939,911 4,760 32,422 10,257 52,759 184,983 $ 1,225,092	Bond for bank acceptances, issuance of secured letters of credit, etc. Bond for bank acceptances, customs deposits Guarantee mortgage for bank line overdraft (note) Guarantee mortgage for bank line overdraft (note) Bond for bank acceptances Contractual liabilities

Note: As of December, 2023, the land, buildings and structures above have been pledged as collateral for the overdraft facilities of financial institutions since 2005. The overdraft had been paid off, but the pledge has not been canceled.

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IX. Significant Contingent Liabilities and Unrecognized Commitments

(I) Contingent matters

The group has no contingent liabilities for material legal claims arising from daily operating activities.

(II) Commitments

On November 30, 2021, the Group's Board of Directors approved the purchase of pre-sale factory buildings. The total transaction amount is NT$488,880 and paid in 5 installments. As of December 31, 2023, the outstanding payment is NT$9,780.

X. Major Disaster Losses

No such situation.

XI. Significant Subsequent Events

The Board of the Company passed the proposal for the distribution of earnings in 2023 on March 13, 2024. Additional information is specified in Note 6 (17).

XII. Others

(I) Capital management

The Group's capital management objectives are to ensure the Group's sustained operation, maintain the optimal capital structure, reduce the cost of capital, and provide returns to shareholders. In order to maintain or adjust the capital structure, the group may adjust the number of dividends paid to shareholders, issue new shares, or sell assets to reduce liabilities. To monitor its capital, the group uses the net debt ratio which is calculated by dividing net debt by total net worth. Net debt is calculated as total borrowings (including the “current and non-current borrowings” reported in the consolidated balance sheet) less cash and cash equivalents. The total net value is calculated as "equity" as shown in the consolidated balance sheet less total intangible assets.

The Group's strategy for 2023 is the same as that in 2022, both of which are committed to maintaining the net debt ratio below 70%.

(II) Financial instrument

1. Types of financial instruments

As of December 31, 2023 and 2022, the book value of the Group’s financial assets measured at amortized cost (including cash and cash equivalents, financial assets measured at amortized costs, notes receivable, accounts receivable (including related parties), and other receivables, under IFRS 9 amounted to NT$14,080,377 and NT$15,498,552, respectively. The book value of financial liabilities measured at amortized cost (including short-term loans, accounts payable (including related parties), other payables) amounted to NT$8,164,636 and NT$9,451,177, respectively. The book value of lease liabilities as of December 31, 2023 and 2022, amounted to NT$99,702 and NT$188,754, respectively. Please refer to Notes 6 (2) and 6 (6) for the book values of financial assets/liabilities measured at fair value through profit or loss and financial assets measured at fair value through other comprehensive income.

2. Risk management Policy

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• (1) Types of risks

The group adopts a comprehensive financial risk management and control system to clearly identify, measure and control various financial risks of the group, including market risk (including exchange rate risk, interest rate risk and price risk), credit risk, and liquidity risk.

• (2) Management objectives

  • A. All the risks above can be eliminated by internal control or operation process, except that market risk is controlled by external factors. Therefore, each risk can be reduced to zero through management.

  • B. In terms of market risk, the objective is to optimize the overall position through rigorous analysis, proposal, implementation and process, with due consideration of the overall external trend, internal operating conditions and the actual impact of market fluctuations.

  • C. The group's overall risk management policy focuses on the unpredictability of the financial market and seeks to reduce potential adverse effects on the group's financial position and financial performance.

• (3) Management system

  • A. Risk management shall be carried out by the Finance Department of the group in accordance with the policies approved by the board of directors. It is responsible for identifying, assessing and avoiding financial risks through close cooperation with group operating units.

  • B. The board of directors has written principles for overall risk management, and also provides written policies for specific areas and matters, such as exchange rate risk, interest rate risk, credit risk, use of derivatives and non-derivative financial instruments, and investment of surplus working capital.

• Nature and extent of significant financial risks

• (1) Market risk

Exchange rate risk

• A. Nature: The group is a multinational electronic OEM company, and most of the exchange rate risks in its operating activities come from:

• a. As the posting times of non-functional foreign currency accounts receivable and accounts payable are different, the exchange rate of the functional currency is different, thus resulting in an exchange rate risk. Because the amount of assets and liabilities after offsetting is not large, the amount of profit or loss is not large. (Note: The group has offices in many countries around the world, so there is an exchange rate risk in a variety of different currencies, but the main ones are the US dollar, RMB, and Malaysian ringgit.)

• b. In addition to the commercial transactions (operating activities) on the abovementioned income, the assets and liabilities recognized on the balance sheet, and the net investment in foreign operations also have exchange rate risks.

• B. Management

• a. For such risks, the group has established a policy that requires companies within the group to manage the exchange rate risk relative to their functional currencies.

• b. The exchange rate risk of each functional currency against the reporting currency of the consolidated statements is managed by the group’s finance office.

• C. Extent

The group's business involves a number of non-functional currencies (New

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Taiwan dollar is the functional currency of the company and some subsidiaries, and RMB and Malaysian ringgit are the functional currencies of some subsidiaries). Therefore, the group is affected by exchange rate fluctuations. The information on foreign currency assets and liabilities with significant exchange rate fluctuations is as follows:

rate fluctuations is	as follows:
(Foreign currency: functional currency) Financial assets Monetary item USD: NTD USD: RMB USD: MYR EUR: MYR Foreign operations USD: NTD Financial liabilities Monetary item USD: NTD USD: RMB USD: MYR (Foreign currency: functional currency) Financial assets Monetary item USD: NTD USD: RMB USD: MYR EUR: MYR Foreign operations USD: NTD Financial liabilities Monetary item USD: NTD USD: RMB USD: MYR		December 31,2023
	Foreign currency (thousand)	Exchange rate	Book value (NT$)	Sensitivityanalysis
				Range of change Impact on profit and loss
	$ 98,290 63,248 67,608 3,234 319,080 79,171 5,891 48,568	30.71 $ 3,018,486 5% $150,924 7.0827 1,938,352 5% 96,918 4.5956 2,076,242 5% 103,812 5.0849 109,891 5% 5,495 30.71 9,798,962 30.71 2,431,341 5% 121,567 7.0827 180,541 5% 9,027 4.5956 1,491,523 5% 74,576 December 31,2022
	Foreign currency (thousand)	Exchange rate	Book value (NT$)	Sensitivityanalysis
				Range of change Impact on profit and loss
	$ 154,693 87,721 103,009 2,504 354,215 150,655 7,392 40,959	30.71 6.9646 4.4131 4.7019 30.71 30.71 6.9646 4.4131	$ 4,750,622 2,693,031 3,166,170 81,931 10,877,954 4,626,615 226,934 1,257,851	5% $237,531 5% 134,652 5% 158,309 5% 4,097 5% 231,331 5% 11,347 5% 62,893

D. Nature

The Group’s currency items were under significant influence of exchange rate fluctuations in 2023 and 2022, with recognition of exchange income (including realized and unrealized items) amounting to a gain of NT$144,784 and NT$3,854, respectively.

Price risk

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• A. The equity instruments of the Group exposed to price risk are financial assets measured at fair value through other comprehensive incomes. In order to manage the price risk of equity instrument investment, the Group diversifies its portfolio in accordance with the limits set by the Group.

• B. The group mainly invests in equity instruments issued by domestic and foreign companies. The prices of these equity instruments will be affected by the uncertainty of the future values of the investment objects. If there is an upward or downward adjustment of the equity instruments by 1% with all other factors remaining unchanged, the effect on other comprehensive income of gains or losses of equity investment classified as measured at fair value through other comprehensive income would increase or decrease by NT$18,661 and NT$17,524 in 2023 and 2022, respectively.

Cash flow and fair value interest rate risk

The interest rate risk of the group comes from short-term borrowings. Borrowings at fixed interest rates expose the group to an interest rate risk at fair value, but after assessment, the group has no significant interest rate risk.

• (2) Credit risk

• A. The credit risk of the group is the risk of financial loss due to the failure of customers or counterparties of financial instrument transactions to fulfill their contractual obligations, which mainly comes from the inability of the counterparties to repay the accounts receivable in accordance with the collection conditions, and the contractual cash flow classified as debt instrument investment measured at after-amortization cost.

• B. In accordance with the internal credit policy, management and credit risk analysis shall be carried out on each operating entity within the group and each new customer before proposing terms and conditions for payment and delivery. Internal risk control is to evaluate the credit quality of customers by considering their financial status, past experience, and other factors. The limits of individual risks are determined by the board of directors based on internal or external ratings, and the use of credit lines is regularly monitored.

• C. The basis for the group to judge whether the credit risk of financial instruments has increased significantly since the original recognition is as follows: When the contract payment is overdue for more than 60 days according to the agreed payment terms, it is deemed that the credit risk of the financial asset has increased significantly since the original recognition.

• D. If the contract amount is overdue for more than 90 days under the conditions of payment, the Group shall deem it a breach of contract.

• E. The group classifies notes receivable and accounts receivable of customers according to the characteristics of customer rating, and estimates the expected credit loss based on the loss rate method.

• F. The indicators used by the group to determine the credit impairment of debt instrument investment are as follows:

  • (A) The issuer encounters major financial difficulties, or the possibility of going into bankruptcy or other financial restructuring is greatly increased;

  • (B) The issuer makes the active market of the financial asset disappear due to its financial difficulties;

  • (C) The issuer delays or fails to pay the interest or principal;

  • (D) Adverse changes in national or regional economic conditions leading to issuer default.

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• G. The aging analysis of notes receivable and accounts receivable (including those of related parties) is as follows:

Not Past Due Less than 90 days 91 ~ 180 days More than 181 days			December 31,2023 $ 6,318,839 9,869 1,412 38 $ 6,330,158			December 31,2022 $ 7,717,356 54,012 80 39 $ 7,771,487

The above is an aging analysis based on the number of overdue days.

• H. Other receivables (including those of related parties)

• The Group’s other receivables are primarily tax refund receivables, receivables on disposal of investments, and receivables on advance payments for other parties. Expected credit loss are estimated individually for other significant receivables in default; there is no concern over material non-performance or non-repayment with other counterparties. Therefore, a loss allowance for 12-month expected credit loss is recognized. The allowances for loss recognized by the Group on December 31, 2023 and 2022 were both NT$99,748, respectively.

• I. The Group classified the accounts receivable of the customers according to the characteristics of the credit rating of the customers, and considered the future forward-looking adjustment of rate of loss on the basis of historical information and information at present time with foresight to estimate the provision for loss on notes and accounts receivable. The method for estimating the loss rate on December 31, 2023 and 2022 is as follows:

December 31,			Group1			Group2			Group3		Group4			Total $ 6,330,158 $ 6,041 Total $ 7,771,487 $ 7,194
			0.04% $5,986,776		0.04% $ 336,578 $ 135	0.04% $ 336,578		0.09% $ 87			0.1%~100%
2023 Expected loss rate Total Book value Allowance for loss December 31, 2022 Expected loss rate Total Book value Allowance for loss
											$ 6,717
			$ 2,395					$-			$ 3,511
			Group1			Group2			Group3		Group4
			0.04% $7,336,321		0.04% $ 428,359 $ 171	0.04% $ 428,359		0.09% $-			0.1%~100%
											$ 6,807
			$ 2,935					$-			$ 4,088

Group 1: Rated A by Standard & Poor's, Fitch or Moody's, or no external agency rating, and rated A according to the group's credit standards.

• Group 2: Rated BBB by Standard & Poor's or Fitch, or Baa by Moody's, or no external agency rating, and rated B or C according to the group's credit standards.

• Group 3: Rated BB+ or below by Standard & Poor's or Fitch, or Ba1 or below by Moody's.

• Group 4: No external agency rating, and non-A, B, or C rated customers according to the group's credit standards.

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• J. The table of changes in the allowance for losses of accounts receivable (including notes) and other receivables (including related parties) after the Group adopted a simplified approach is as follows:

simplified approach is as follows:
January 1 Reversal of impairment loss Irrecoverable amount written off Effect on foreign currency exchange differences December 31		2023			2022 $ 11,607 ( 478) ( 4,102) 167 $ 7,194
		$ 7,194 ( 1,021) - ( 132)
			$ 6,041

• K. All the Group’s financial assets measured at after-amortization cost as of December 31, 2023 and 2022 had a low credit risk. Therefore, the book value is measured according to the expected credit loss in 12 months after the balance sheet date.

• (3) Liquidity risk

• A. The cash flow forecast is carried out by each operating entity within the group and summarized by the group’s finance department. The group’s finance department monitors the forecast of the group's liquidity funds demand to ensure that it has sufficient funds to meet operational needs, and maintains sufficient unspent loan commitments at all times so that the group will not exceed the relevant borrowing limits or violate the terms. These forecasts take into account the group's debt financing plan, compliance with debt terms, and compliance with the financial ratios in the internal balance sheet and external regulatory requirements, such as foreign exchange control.

• B. When the remaining cash held by the group exceeds the requirement for the management of working capital, the finance department will invest the remaining funds in interest-bearing demand deposits, time deposits, money market deposits and securities, and the instruments selected to have appropriate maturities or sufficient liquidity to meet the forecast above and provide sufficient liquidity, and it is expected that cash flow will be generated immediately for the management of liquidity risk.

• C. The following table shows the grouping of the group's non-derivative financial liabilities according to their maturity dates. The non-derivative financial liabilities are analyzed according to the remaining period from the balance sheet date to the contract maturity date. The amount of contractual cash flow disclosed in the table below is the undiscounted amount.

December 31, 2023 Non-derivative financial liabilities: Lease liabilities December 31, 2022 Non-derivative financial liabilities: Lease liabilities	Less than 1 year	1 ~ 2years	2 ~ 5years	Total $ 107,315 Total $ 195,989
	$ 43,026 Less than 1 year	$ 33,750 1 ~ 2years	$ 30,539 2 ~5 years
	$ 95,184	$ 42,958	$ 57,847

In addition to the above, the group's non-derivative financial liabilities are all due within the next year.

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(III) Fair value information

1. The levels of evaluation techniques used to measure the fair value of financial and nonfinancial instruments are defined as follows:

2. Level 1: The quoted price (unadjusted) is available to the enterprise in an active market for the same assets or liabilities on the measurement date. An active market refers to a market in which assets or liabilities are traded in sufficient frequency and quantity to provide pricing information on an ongoing basis. The fair value of the listed and OTC stocks and beneficiary certificates invested by the group belongs to this level.

3. Level 2: The input value of assets or liabilities are directly or indirectly observable, except those in Level 1. The fair value of the derivative instruments invested by the group belongs to this level.

4. Level 3: The input value of assets or liabilities are unobservable. The equity instruments invested by the Group without an active market belong to this level.

5. Financial instruments not measured at fair value

The book values of the group's financial instruments not measured at fair value (including cash and cash equivalents, financial assets measured at after-amortization cost, notes receivable, accounts receivable, other receivables, other current assets, notes payable, accounts payable, other payable, lease liabilities and other current liabilities) are reasonable approximations of their fair values.

1. For the group’s financial and non-financial instruments measured at fair value, the group classifies them according to the nature, characteristics, risk, and fair value level of the assets and liabilities. The relevant information is as follows:

2. (1) The information about the group’s classification of its assets and liabilities by their nature is as follows:

nature is as follows:
December 31, 2023 Financial assets: Repetitive fair value Financial assets at FVTPL -Open-end funds Financial assets at FVTOCI - Equity securities December 31, 2022 Financial assets: Repetitive fair value Financial assets at FVTPL -Open-end funds Financial assets at FVTOCI - Equity securities		Level 1		Level 2		Level3		Total
		$ 10,536		$-		$-		$ 10,536 $ 1,866,099 Total
		$ 1,016,823 Level 1		$-		$ 849,276
				Level 2		Level 3
		$ 10,239		$-		$-		$ 10,239 $ 1,752,355
		$ 827,081		$-		$ 925,274

• (2) The methods and assumptions used by the group to measure fair value are as follows: A. If the group adopts a market quotation as the input value of fair value (i.e. level 1), the instruments classified by their characteristics are as follows: Listed and OTC stocks Open-end funds

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Market quotation

Closing price

Net value

• B. Except for the above-mentioned financial instruments with active markets, the fair values of other financial instruments are obtained through evaluation techniques or reference to the quotations of counterparties. The fair value obtained through the evaluation techniques can be calculated by referring to the current fair value of other financial instruments with similar conditions and characteristics, or the value can be obtained through other evaluation techniques, including using models to calculate market information available on the consolidated balance sheet date.

• C. The evaluation of derivative financial instruments is based on evaluation models widely accepted by market users, such as the discount method and the option pricing model. Foreign exchange forward contracts are usually evaluated according to the current forward exchange rate.

• D. The output of the evaluation model is the estimated value, and the evaluation technique may not reflect all the factors related to the group's holding of financial instruments and non-financial instruments. Therefore, the estimated value of the evaluation model will be adjusted according to additional parameters, such as model risk or liquidity risk. According to the Group's fair value evaluation model management policies and related control procedures, the management believes that the evaluation adjustment is appropriate and necessary to properly express the fair value of financial instruments and non-financial instruments in the consolidated balance sheet. The price information and parameters used in the evaluation process have been carefully evaluated and appropriately adjusted according to current market conditions.

• E. The Group has incorporated credit risk assessment adjustments into its calculation for the fair values of financial and non-financial instruments to reflect counterparty credit risks and the Group's credit quality, respectively.

• There were no transfers between Level 1 and Level 2 in 2023 and 2022.

• The following table shows the changes in Level 3 in 2023 and 2022:

January 1 Profit (loss) recognized in other comprehensive income Effect on foreign currency exchange differences December 31		Equitysecurities 2023 2022 $ 925,274 $ 785,661 ( 77,025) 59,706 1,027 79,907 $ 849,276 $ 925,274
		2023
		$ 925,274 ( 77,025) 1,027 $ 849,276

1. There was no transfer in or out from Level 3 in 2023 and 2022.

2. For the fair value of level 3 of the Group, the investment management department is responsible for the independent verification of the fair value of such financial instruments in the evaluation process. The evaluation results are close to the market status through independent sources of information, and the data sources are independent, reliable, consistent with other resources, and represent executable prices. The evaluation model is calibrated regularly, backtracked, and updated for the input values and information required by the evaluation model, and any other necessary fair value adjustments are made to ensure that the evaluation results are reasonable.

In addition, the investment management department formulates the fair value evaluation policies, evaluation procedures, and confirmation of financial instruments in accordance with the relevant international financial reporting standards.

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1. The quantitative information about the significant unobservable input value of the evaluation model used for level 3 fair value measurement and the sensitivity analysis of the significant unobservable input value changes are as follows:

Non-derivative equity instruments: Non-listed and non-OTC stocks Non-listed and non-OTC stocks Non-derivative equity instruments: Non-listed and non-OTC stocks Non-listed and non-OTC stocks	December 31, 2023	Evaluation techniques	Significant unobservabl e inputvalue	Range (weighted average)	Relationship between input value and fair value
	$ 785,068 64,208 December 31, 2022	Net asset value method Market method Evaluation techniques	Lack of market liquidity discount Price–to- book ratio Lack of market liquidity discount Significant unobservabl e input value	22% 1.17 20% Range (weighted average)	The higher the market liquidity discount, the lower the fair value. The higher the multiplier, the higher the fair value. The higher the market liquidity discount, the lower the fair value. Relationship between input value and fair value
	$ 856,726 68,548	Net asset value method Comparable public company approach	Lack of market liquidity discount Price–to- book ratio Lack of market liquidity discount	24% 1.29 20%	The higher the market liquidity discount, the lower the fair value. The higher the multiplier, the higher the fair value. The higher the market liquidity discount, the lower the fair value.

1. The Group carefully selects the evaluation model and evaluation parameters; however, different evaluation models or parameters may lead to different evaluation results. For financial assets and financial liabilities classified as level 3, if the evaluation parameters change, the impact on current profit and loss or other comprehensive income is as follows:

Financial assets	Period	Input value	Change	Recognized in other comprehensive income	Recognized in other comprehensive income
				Favorable change	Unfavorable change
Equity instruments	December 31, 2023	Lack of market liquidity discount	±1%	$ 3,023 ($ 3,023)

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Equity instruments Financial assets	December 31, 2023 Period	Price–to-book ratio Inputvalue	±1% Change	$ 549 ($ 549) Recognized in other comprehensive income	$ 549 ($ 549) Recognized in other comprehensive income
				Favorable change	Unfavorable change
Equity instruments Equity instruments	December 31, 2022 December 31, 2022	Lack of market liquidity discount Price–to-book ratio	±1% ±1%	$ 3,730 ($ 3,730) $ 531 ($ 531)

XIII. Additional Disclosures

• (I) Information about significant transactions

• Loans to others: Please refer to Table 1.

• Endorsements/guarantees provided: Please refer to Table 2.

• Marketable securities held at the end of the period (excluding investment in subsidiaries, affiliated enterprises and jointly controlled entities): Please refer to Table 3.

• The cumulative amount of buying or selling the same securities reaches NT$300 million or more, or 20% of the paid-in capital: No such situation.

• The cumulative amount of property acquired reaches NT$300 million or more, or 20% of the paid-in capital: No such situation.

• The cumulative amount of property disposal reaches NT$300 million or more, or 20% of the paid-in capital: No such situation.

• Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital: Please refer to Table 4.

• Total accounts receivable from related parties amounting to at least NT$100 million or 20% of the paid-in capital: Please refer to Table 5.

• Engagement in derivatives trading: Please refer to Note 12 (3).

• Significant Inter-company Transactions during the Reporting Period: Please refer to Table 6.

• (II) Information about investees

The name and location of the investee company and other relevant information (excluding mainland China investee companies): Please refer to Table 7.

(III) Information on investments in mainland China

1. Basic information: Please refer to Table 8.

2. Major transactions directly with investee companies in the mainland China or indirectly through a third regional enterprise: Please refer to Tables 4, 5 and 6.

3. (IV) Information on major shareholders

Information of major shareholders: Please refer to Table 9.

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XIV. Operating Departments Information

(I) General information

The main businesses of the Group are the development, manufacturing and sales of electronic components such as electronic signal cables, connectors, electronic signal cables with connectors, printed circuit boards and precision molds, and computer peripheral products. The operation decision-makers also operate various businesses from the perspective of product categories and develop businesses according to different market attributes and demands. At present, the Group is mainly divided into the "Electronic Components Segment" and "Consumer Electronics and Computer Peripherals Segment,” which are also the segments to be reported.

The operating departments’ information is compiled in accordance with the accounting policies of the Group. The main operational decision-makers of the group mainly use the income and pre-tax profit and loss of each operating department as indicators for performance evaluation and resource allocation.

(II) Segments Information

Information on the reportable departments as provided to major operational decision-makers is as follows:

is as follows:
2023 Segment Revenue Segment profit and loss 2022 Segment Revenue Segment profit and loss		Electronic Components	Consumer Electronics and Computer Peripherals			Total $ 25,634,258 $ 1,978,548 Total $ 26,257,340 $ 2,230,761
		$ 15,365,498	$ 10,268,760 $ 876,400 Consumer Electronics and Computer Peripherals	$ 10,268,760 $ 876,400
		$ 1,102,148
		Electronic Components
		$ 14,807,752		$ 11,449,588 $ 848,672
		$ 1,382,089

Note: Since the measured amount of the assets of the operating department is not provided to the operation decision-maker, the measured amount of the assets should be disclosed as zero.

(III) Information on the adjustment to the income and profit and loss of the segments to be reported

Since the income of the segments to be reported is the income of the enterprise, there is no need to adjust it. In addition, the adjustments to the profit and loss of the segments to be reported and to the pre-tax profit and loss of continuing operating departments are as follows:

Profit and loss Profit and loss of the segments to be reported Other profit and loss Pre-tax profit and loss of continuing operating departments		2023	2023		2022 $ 2,230,761 ( 174,328) $ 2,056,433
		$ 1,978,548 ( 136,756)
			$ 1,841,792

(IV) Information on product type and service type

The revenue of external customers is mainly from the sale of the aforementioned segments for reporting. Segments for reporting are differentiated by product. Therefore, income by product type should be the income of the segments in the report.

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(V) Information on the regions

Information of the Group by region in 2023 and 2022 is shown below:

Mainland China Malaysia Hong Kong USA Others			2023 Revenue Non-Current Assets $ 11,949,640 $ 1,811,794 3,865,480 1,419,020 5,021,408 - 1,838,052 16,909 2,959,678 554,686 $ 25,634,258 $ 3,802,409	2023 Revenue Non-Current Assets $ 11,949,640 $ 1,811,794 3,865,480 1,419,020 5,021,408 - 1,838,052 16,909 2,959,678 554,686 $ 25,634,258 $ 3,802,409	2023 Revenue Non-Current Assets $ 11,949,640 $ 1,811,794 3,865,480 1,419,020 5,021,408 - 1,838,052 16,909 2,959,678 554,686 $ 25,634,258 $ 3,802,409			2022 Revenue Non-Current Assets $ 11,634,937 $ 2,116,214 3,958,696 1,326,225 6,088,703 - 2,266,499 19,383 2,308,505 134,815 $ 26,257,340 $ 3,596,637	2022 Revenue Non-Current Assets $ 11,634,937 $ 2,116,214 3,958,696 1,326,225 6,088,703 - 2,266,499 19,383 2,308,505 134,815 $ 26,257,340 $ 3,596,637	2022 Revenue Non-Current Assets $ 11,634,937 $ 2,116,214 3,958,696 1,326,225 6,088,703 - 2,266,499 19,383 2,308,505 134,815 $ 26,257,340 $ 3,596,637
			Revenue $ 11,949,640 3,865,480 5,021,408 1,838,052 2,959,678 $ 25,634,258					Revenue $ 11,634,937 3,958,696 6,088,703 2,266,499 2,308,505 $ 26,257,340

(VI) Information on key customers

Customers accounting for more than 10% of the sales revenue as stated in the Group’s Consolidated Income Statement of 2023 and 2022:

Customer Group A Customer of Group B		2023		2022 $ 7,113,019 2,125,811 $ 9,238,830
		$ 5,742,428 3,216,729
		$ 8,959,157

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Pan-International Industrial Corp. and Subsidiaries Loans to others January 1 to December 31, 2023

Table 1

Table 1 Unit: NTD thousand (unless otherwise noted) Maximum Business Serial Dealing Whet amount of the Ending Loan Transactio Reason Provision No. items her a period balance nature n Amounts for shortfor Collateral Loans and Total loan limit relate term allowance limits for (note Loan extending d Transaction Interest (note financing for loss for individual Rema 1) company Borrower (note 2) party (note 3) (note 8) Amounts Rate 4) (note 5) (note 6) bad debt Name Value entities (note 7) (note 7) rks 1 Honghuasheng CJ Electric Other Yes $ $ $ 3.45Short$ Operating $ None. None. $ $ Precision Systems Co., receivabl 569,140 562,510 562,510 3.65% term - turnover - 7,502,272 15,004,544 Electronics Ltd. es - financi (Yantai) Co., Ltd. related ng parties

Note 1: The explanation of the number column is as follows:

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(1) Fill in 0 for the issuer. (2) Investee companies are numbered in sequence in each company type starting numerically from 1. Note 2: This field is to be filled in with accounts receivable from affiliated enterprises, receivables from related parties, transactions with shareholders, prepayments, provisional payments, etc. if nature is a loan to others.

Note 3: The maximum balance of loans to others in the current year. Note 4: The loan nature of the fund shall be filled in if it is a business transaction or if there is a need for short-term financing. Note 5: Where the nature of the loan is a business transaction, the amount of the business transaction shall be filled in. The business transaction amount refers to the number of business transactions between the lending company and the borrowing object in the most recent year. Note 6: If the nature of the loan is necessary for short-term financing, the reason for the loan and the purpose of the loan borrower shall be specified, such as loan repayment, purchase of equipment, business turnover, etc. Note 7: The total amount of funds lending from the Company to a foreign subsidiary that the Company, directly and indirectly, holds 100% of its voting shares shall not exceed 400% of the lender's net worth, and the limit for an individual entity shall not exceed 200% of the lender's net worth. Note 8: If the public company submits the loaning of funds to the board of directors for the resolution of the board of directors on a case-by-case basis in accordance with Article 14-1 of the Regulations Governing Loaning of Funds and Making of Endorsements/Guarantees by Public Companies, the amount resolved by the board of directors shall be included in the announcement balance even though the funds have not yet been appropriated. However, for subsequent repayment, the balance after repayment shall be disclosed to reflect the risk adjustment. If the public company has authorized the chairperson to make loans in installments or revolving drawdowns over a certain quota and within one year within a one-year period through a resolution of the board of directors pursuant to Article 14-2 of the Regulations Governing Loaning of Funds and Making of Endorsements/Guarantees by Public Companies, the amount of funds for loans approved by the board of directors shall still be used as the balance in the announcement and report. Although the funds are repaid subsequently, the balance may still be loaned again based on the amount of funds loaned approved by the board of directors.

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Pan-International Industrial Corp. and Subsidiaries

Endorsement/guarantee provided January 1 to December 31, 2023

Table 2

Unit: NTD thousand

												(unless otherwise	(unless otherwise	noted)
		Guaranteed Party							Ratio of the cumulative		Endorsement/ guarantee	Endorsement/ guarantee
									endorsement/		from the	from	Endorsement/
				Endorsement/gu	Maximum	Endorsement/			guarantee		parent	subsidiary to	guarantee to
	Name of			arantee limit for	endorsement/gua	guarantee		Amount of	amount to the		company to	parent	entities in the
Serial	company of		Relat	a single	rantee balance of	balance of the	Actual	endorsement/	net value in	Endorsement/g	subsidiary	company	Mainland
No.	the		ion	enterprise	the period	period	disbursement	guarantee	the latest	uarantee limit	(note 7)	(note 7)	China
(note	endorsement/g		(note					backed by	financial					Rem
1)	uarantee	Company name	2)	(note 3)	(note 4)	(note 5)	(note 6)	assets	report	(note 3)			(note 7)	arks
1	P.I.E Industrial	Pan-International	2	$	$	$	$	-	8.83	$	N	N	N
	Berhad	Electronics(M)		1,966,172	1,242,961	1,183,514	290,419			3,932,343
		Sdn.Bhd.
1	P.I.E Industrial	PAN-	2					-	0.67		N	N	N
	Berhad	INTERNATION		1,966,172	93,062	89,501	4,076			3,932,343
		AL
		WIRE&CABLE(
		M) SDN.BHD.
2	Pan-	CJ Electric	4					-	1.78		N	N	Y
	International	Systems Co.,		1,563,332	237,985	237,985	302,890			1,563,332
	Precision	Ltd.
	Electronic Co.,
	Ltd.
3	CJ Electric	Wuhu Herzhong	4					-	0.16		N	N	Y
	Systems Co.,	Automotive		672,156	21,635	21,635	21,440			672,156
	Ltd.	Electronics Co.,
		Ltd.

Note 1: The explanation of the number column is as follows: (1) Fill in 0 for the issuer.

~76~

(2) Investee companies are numbered in sequence in each company type starting numerically from 1. Note 2: There are 7 types of relations between the endorsement guarantor and the endorsement guaranteed as follows; simply mark the type: (1). A company with business relations.

(2). A company with more than 50% of its voting shares is directly or indirectly held by the company. (3). A company directly or indirectly holding more than 50% of the voting shares of the company. (4). A company with more than 90% of its voting shares is directly or indirectly held by the company. (5). A company with mutual guarantees in accordance with the contract in the same industry or a joint constructor to contract the project.

(6). A company that has been endorsed/guaranteed by all the contributing shareholders in accordance with their shareholding ratios due to a joint investment relationship. (7). Joint and several guarantees for the performance of a contract for the sale of pre-sold houses among companies in the same industry in accordance with the provisions of the Consumer Protection Act.

Note 3: The total amount of the endorsement or guarantee provided by the Company to others shall not exceed 100% of the net worth of the Company; the limit of endorsement or guarantee provided to others by individual counterparties shall not exceed 50% of the net worth of the Company; The total amount of endorsements or guarantees made by the Company and its subsidiaries as a whole to others is limited to 100% of the Company's net worth; the amount of endorsements or guarantees made by the Company and its subsidiaries as a whole for a single enterprise is limited to 10% of the net worth of the Company 50%. The total amount of PIE INDUSTRIAL BERHAD's endorsements or guarantees to others shall not exceed 100% of its net worth; the limit of its endorsement or guarantee to others shall not exceed 50% of its net worth. The total amount of endorsements/guarantees shall not exceed 100% of the net worth of the parties making the endorsements/guarantees between the Company and overseas subsidiaries in which the Company holds, directly or indirectly, 100% of the voting shares limit.

Note 4: The maximum balance of endorsements/guarantees for

others in the current year.

Note 5: The amount approved by the board of directors’ meeting shall be filled in. However, if the board of directors’ meeting authorizes the chairman of the board to decide in accordance with paragraph 8, Article 12 of the Regulations Governing Loaning of Funds and Making of Endorsements/ Guarantees by Public Companies, it refers to the amount decided by the chairman of the board. Note 6: The actual amount of the company's disbursement within the range of using the balance of the

endorsements/guarantees shall be entered.

Note 7: Y is required only for an endorsement/guarantee of a listed parent company to a subsidiary, an endorsement/guarantee of a subsidiary to a listed parent company, and an endorsement/guarantee to mainland China.

~77~

Pan-International Industrial Corp. and Subsidiaries

Marketable securities held at period end (excluding investment in subsidiaries, associates and jointly controlled entities). December 31, 2023

Table 3 Holding Company Name Pan-International Industrial Corp. Pan-International Industrial Corp. Pan-International Industrial Corp. Yann-Yang Investments Corp. P.I.E. INDUSTRIAL BERHAD	Type of marketable securities Relationship with the Holding Company Financial report Account Name of marketable securities Ordinary corporate bonds Shin Kong Life Insurance Co., Ltd: 2023 1st unsecured cumulative subordinated ordinary corporate bonds None. Financial assets measured at after- amortization cost - Non-current Common share Innolux Corporation None. Financial assets measured at fair value through other comprehensive income - Non- current Common share Syntrend Creative Park Co., Ltd. The largest shareholder of this company is the largest shareholder of Hon Hai Precision Co., Ltd. Financial assets measured at fair value through other comprehensive income - Non- current Common share Lico Technology Corporation None. Financial assets measured at fair value through income - Non- current Open-end funds Eastspring Investments Islamic Income Fund None. Financial assets measured at fair value through income - Current	Number	of shares/beneficiary certificates - $ 71,106,472 12,831,500 3,400,000 23,581	End of the period Book value 290,000 1,016,823 64,208 - 85	Shares Ratio - $ 0.78 5.23 2.73 -	Unit: NTD thousand (unless otherwise noted) Remarks Fair value 290,000 1,016,823 64,208 - 85	Unit: NTD thousand (unless otherwise noted) Remarks Fair value 290,000 1,016,823 64,208 - 85

~78~

P.I.E. INDUSTRIAL	Open-end	Affin Hwang	None.	Financial assets	543,673	2,055	- 2,055
BERHAD	funds	Aiiman Money		measured at fair
		Market Fund I		value through
				income - Current
P.I.E. INDUSTRIAL	Open-end	Affin Hwang	None.	Financial assets	255,634	8,396	1.87 8,396
BERHAD	funds	USD Cash Fund		measured at fair
				value through
				income - Current
PAN GLOBAL	Common	FSK Holdings	The investment	Financial assets	50,400,000	24,266	17.50 24,266
HOLDING	share	Limited	company is	measured at fair
CO., LTD.			evaluated by	value through
			the equity	other
			method; the	comprehensive
			same as the	income - Non-
			Company.	current
PAN GLOBAL	B share	Cybertan	The investment	Financial assets	28,498,993	760,802	16.87 760,802
HOLDING		Technology	company is	measured at fair
CO., LTD.		Corp.	evaluated by	value through
			the equity	other
			method; the	comprehensive
			same as the	income - Non-
			Company.	current

~79~

Pan-International Industrial Corp. and Subsidiaries

Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital or more.

December 31, 2023

Table 4

Unit: NTD thousand (unless otherwise noted)

Buyer/Seller Related Party Relation Pan- International Industrial Corp. Pan- International Electronics (USA) Inc. Subsidiary of the Company’ s indirect reinvestm ent Pan- International Industrial Corp. Hongfutai Precision Electronics (Yantai) Co., Ltd. Subsidiary of the indirect reinvestm ent of Hon Hai Precision Industry Co., Ltd. Pan- International Industrial Corp. Hongfujin Precision Industry (Yantai) Co., Ltd. Subsidiary of the indirect reinvestm ent of Hon Hai Precision Industry Co., Ltd. Pan- International Industrial Corp. Hongfujin Precision Industry (Wuhan) Co., Ltd. Subsidiary of the indirect reinvestm ent of Hon Hai	Purchase/S ale Sales $ 376,531 Sales 352,789 Sales 630,496 Sales 548,257	Transaction details Transaction terms different from general ones and reasons Amount Percentage of total purchase (sale) Credit period Unit Price Credit period 4 Monthl y settleme nt 90 days T/T No sale to other customer s with no basis for comparis on No significa nt differen ce $ 54,853 4 Monthl y settleme nt 90 days T/T No sale to other customer s with no basis for comparis on No significa nt differen ce 7 Monthl y settleme nt 90 days T/T No sale to other customer s with no basis for comparis on No significa nt differen ce 6 Monthl y settleme nt 90 No sale to other customer s with no basis for No significa nt differen ce	Note/Accounts Receivable (Payable) Balance Percentage of total notes and accounts receivable (payable) 3 9,811 - 4,222 - 170,223 8	Remar
				ks

~80~

		Precision				days	comparis
		Industry				T/T	on
		Co., Ltd.
Pan-	FIH (Hong	Subsidiary	Sales				No sale	No
International	Kong) Mobil	of the		361,987	4	Monthl	to other	significa		50,281	2
Industrial Corp.	Limited	indirect				y	customer	nt
		reinvestm				settleme	s with no	differen
		ent of Hon				nt 90	basis for	ce
		Hai				days	comparis
		Precision				T/T	on
		Industry
		Co., Ltd.
Pan-	Foxconn	Other	Sales				No sale	No
International	Technology	related		344,109	4	Monthl	to other	significa		44,091	2
Industrial Corp.	Co., Ltd.	parties				y	customer	nt
						settleme	s with no	differen
						nt 90	basis for	ce
						days	comparis
						T/T	on
Pan-	Hon Hai	A	Sales				No sale	No
International	Precision	company		1,874,563	20	Monthl	to other	significa		676,322	32
Industrial Corp.	Industry Co.,	that				y	customer	nt
	Ltd.	evaluates				settleme	s with no	differen
		the				nt 90	basis for	ce
		Company				days	comparis
		by the				T/T	on
		equity
		method
Pan-	Honghuasheng	Subsidiary	Purchase				A single	No	(	671,476) (	35)
International	Precision	of the		4,490,454	54	Monthl	supplier	significa
Industrial Corp.	Electronics	Company’				y	with no	nt
	(Yantai) Co.,	s indirect				settleme	basis for	differen
	Ltd.	reinvestm				nt 90	comparis	ce
		ent				days	on
Pan-	Pan-	Subsidiary	Purchase				A single	No	(	156,663) (	8)
International	International	of the		851,790	10	Monthl	supplier	significa
Industrial Corp.	Precision	Company’				y	with no	nt
	Electronic Co.,	s indirect				settleme	basis for	differen
	Ltd.	reinvestm				nt 90	comparis	ce
		ent				days	on
Pan-	FOXCONN	Subsidiary	Purchase				A single	No	(	505,985) (	26)
International	INTERCONN	of the		1,195,120	14	Monthl	supplier	significa
Industrial Corp.	ECT	indirect				y	with no	nt
	TECHNOLOG	reinvestm				settleme	basis for	differen
	Y LIMITED	ent of Hon				nt 90	comparis	ce
		Hai				days	on
		Precision
		Industry
		Co., Ltd.

~81~

PAN-	SHARP	Other	Sales				No sale	No
INTERNATION	NORTH	related		3,175,021	38	Monthl	to other	significa		931,955	43
AL	MALAYSIA	parties				y	customer	nt
ELECTRONICS	SDN.BHD.					settleme	s with no	differen
(M) SDN.BHD.						nt of 30	basis for	ce
						days	comparis
							on
Pan-	Hong-qi	Subsidiary	Sales				No sale	No
International	Mechatronics	of the		244,975	15	Monthl	to other	significa		50,102	16
Precision	(Anhui) Co.,	indirect				y	customer	nt
Electronic Co.,	Ltd.	reinvestm				settleme	s with no	differen
Ltd.		ent of Hon				nt 90	basis for	ce
		Hai				days	comparis
		Precision					on
		Industry
		Co., Ltd.
New Ocean	FOXCONN	Subsidiary	Sales				No sale	No
Precision	INTERCONN	of the		1,184,819	99	Monthl	to other	significa		578,829	100
Component	ECT	indirect				y	customer	nt
(Jiangxi) Co.,	TECHNOLOG	reinvestm				settleme	s with no	differen
Ltd.	Y LIMITED	ent of Hon				nt 60	basis for	ce
		Hai				days	comparis
		Precision					on
		Industry
		Co., Ltd.
PAN-	Foxconn	Other	Purchase				A single	No	(	570,007) (	43)
INTERNATION	Technology	related		2,288,548	30	Monthl	supplier	significa
AL	Co., Ltd	parties				y	with no	nt
ELECTRONICS						settleme	basis for	differen
(M) SDN.BHD.						nt 90	comparis	ce
						days	on
PAN-	Hon Hai	A	Purchase				A single	No	(	46,766) (	4)
INTERNATION	Precision	company		408,896	5	Monthl	supplier	significa
AL	Industry Co.,	that				y	with no	nt
ELECTRONICS	Ltd.	evaluates				settleme	basis for	differen
(M) SDN.BHD.		the				nt 90	comparis	ce
		Company				days	on
		by the
		equity
		method
Tekcon	FOXCONN	Subsidiary	Purchase				A single	No	(	253,910) (	91)
Electronics	INTERCONN	of the		704,132	88	Monthl	supplier	significa
Corporation	ECT	indirect				y	with no	nt
	TECHNOLOG	reinvestm				settleme	basis for	differen
	Y LIMITED	ent of Hon				nt 120	comparis	ce
		Hai				days	on
		Precision
		Industry
		Co., Ltd.

~82~

Honghuasheng	Shenzhen	Subsidiary	Purchase				Due	Negotiat	No		-	-
Precision	Fujun Material	of the		399,720	11	in	90	ed Price	significa
Electronics	Science Co.,	indirect				days		is	nt
(Yantai) Co.,	Ltd.	reinvestm						Adopted	differen
Ltd.		ent of Hon							ce
		Hai
		Precision
		Industry
		Co., Ltd.
Tekcon Huizhou	Huaian	Subsidiary	Purchase					A single	No	(	163,919) (	80)
Electronics Co.,	Fulitong Trade	of the		110,896	47	Monthl		supplier	significa
Ltd.	Co., Ltd.	indirect				y		with no	nt
		reinvestm				settleme		basis for	differen
		ent of Hon				nt	120	comparis	ce
		Hai				days		on
		Precision
		Industry
		Co., Ltd.

~83~

Pan-International Industrial Corp. and Subsidiaries

Total accounts receivable from related parties amounting to at least NT$100 million or 20% of the paid-in capital or more.

December 31, 2023

Table 5

Unit: NTD thousand

(unless otherwise noted)

Company Name Related Party Relation Balance of accounts receivable from related parties (Note 1) Turnover Rate Pan- International Industrial Corp. Hongfujin Precision Industry (Wuhan) Co., Ltd. Subsidiary of the indirect reinvestm ent of Hon Hai Precision Industry Co., Ltd. $ 170,223 2.86 Pan- International Industrial Corp. Hon Hai Precision Industry Co., Ltd. A company that evaluates the Company by the equity method 676,322 4.80 Honghuasheng Precision Electronics (Yantai) Co., Ltd. Pan- International Industrial Corp. The Company’ s parent company 671,476 4.23 Pan- International Precision Electronic Co., Ltd. Pan- International Industrial Corp. The Company’ s parent company 156,663 5.30 PAN- INTERNATION AL SHARP NORTH MALAYSIA SDN.BHD. Other related parties 931,955 3.74	Amount - 781 - - -	Overdue Actions Taken Payment received after the period $ Payment received after the period Payment received after the period Payment received after the period Payment received after the period	Accounts receivable from related parties recovered after the period Provision for bad debt 47,777 $ 68 292,417 271 - 273 74,058 - - -	Provision for bad

ELECTRONICS (M) SDN.BHD.

~84~

New Ocean FOXCONN Subsidiary Precision INTERCONN of the 578,829 1.94 Component ECT indirect (Jiangxi) Co., TECHNOLOG reinvestm Ltd. Y LIMITED ent of Hon Hai Precision Industry Co., Ltd.

-	Payment received after the
	period	20,704	232

Note 1: Please refer to the description in Table 1 for the transaction information of the related party's capital loan and its receivables amounting to NT$100 million or over 20% of the paid-in capital.

~85~

Pan-International Industrial Corp. and Subsidiaries

Significant Inter-company Transactions during the Reporting Period

December 31, 2023

Table 6

Unit: NTD thousand

(unless otherwise noted)

Serial No. (Note 1) Transaction Company Counterparty 0 Pan-International Industrial Corp. Honghuasheng Precision Electronics (Yantai) Co., Ltd. 0 Pan-International Industrial Corp. Pan-International Precision Electronic Co., Ltd. 0 Pan-International Industrial Corp. Pan-International Electronics (USA) Inc. 1 Pan-International Precision Electronic Co., Ltd. Pan-International Industrial Corp. 2 Honghuasheng Precision Electronics (Yantai) Co., Ltd. Pan-International Industrial Corp.	Relationship with the transaction parties (Note 2) Transactions (Note 4, Note 6) Account Amount Transaction Terms 1 Purchase$ 4,490,454 Note 5 1 Purchase 851,790 Note 5 1 Sales 376,531 Note 5 2 Accounts receivable 156,663 Note 5 2 Accounts receivable 671,476 Note 5	Relationship with the transaction parties (Note 2) Transactions (Note 4, Note 6) Account Amount Transaction Terms 1 Purchase$ 4,490,454 Note 5 1 Purchase 851,790 Note 5 1 Sales 376,531 Note 5 2 Accounts receivable 156,663 Note 5 2 Accounts receivable 671,476 Note 5	Percenta
			ge over
			consolida
			ted total
			revenue
		the	or total assets (note 3) 18 3 1 1 3

Note 1: The business information between the parent company and the subsidiary shall be indicated in the number column respectively, and the number shall be filled in as follows:

(1) Fill in 0 for the parent company

(2) Subsidiaries are numbered in sequence in each company type starting numerically from 1.

Note 2: There are three types of relationship with the transaction party; just mark the type (there is no need to repeatedly disclose the same transaction between parent and subsidiary companies or between subsidiary companies. For example, if the parent company has

~86~

disclosed its transactions with subsidiaries, it is not necessary for the subsidiaries to repeat the disclosure. If one subsidiary has transactions with another subsidiary and one of the subsidiaries has made a disclosure,

the other is not required to repeat the disclosure.

• (1) Parent company with a subsidiary.

• (2) A subsidiary with the parent company.

• (3) A subsidiary with a subsidiary.

Note 3: For the calculation of the ratio of the transaction amount to the total consolidated revenue or total assets, if it belongs to the account of assets and liabilities, it shall be calculated in the way that the ending balance accounts for the total consolidated assets; if it belongs to the account of income it shall be calculated in the way that the accumulated amount in the period end accounts for the total consolidated revenue. Note 4: The standard for disclosing the transaction information above between the parent company and a subsidiary is that the amount of purchase, sale and receivables from related parties reaches NT$100 million or 20% of the paid-in capital.

Note 5: Transaction prices are negotiated and the collection period is monthly settlement 90 days.

Note 6: Please refer to the description in Table 1 for the transaction information of the related party's capital loan and its receivables amounting to NT$100 million or over 20% of the paid-in capital.

~87~

Pan-International Industrial Corp. and Subsidiaries

The name and location of the investee company and other relevant information (excluding mainland China investee companies)

January 1 to December 31, 2023

Table 7

Unit: NTD thousand

Table 7			Unit: NTD thousand
Investor Investor Company Pan-International Industrial Corp. Pan Global Holding Co., Ltd. Pan-International Industrial Corp. Pan-International Electronics Inc. Pan-International Industrial Corp. Yann-Yang Investments Corp. Yann-Yang Investments Corp. Tekcon Electronics Corporation Pan Global Holding Co., Ltd. P.I.E. Industrial Berhad (PIB) Pan Global Holding Co., Ltd. Beyond Achieve Enterprise Ltd. (BAE) Pan Global Holding Co., Ltd. TEAM UNION INTERNATION AL Ltd. (TUI) Pan Global Holding Co., Ltd. East Honest Holdings Limited (EHH) Pan Global Holding Co., Ltd. LONG TIME TECH. CO., LTD. Tekcon Electronics Corporation LONG TIME TECH. CO., LTD. PAN- INTERNATION AL ELECTRONICS PAN- INTERNATION AL CORPORATIO	Locatio n Main Businesses and Products Original Investment Amount Shares held as at end of the period End of the period End of last year Shares Ratio Book value British Virgin Islands Holding company $ 1,759,731 $ 3,472,484 6,726 100 $ 9,565,251 USA Sale of electronic products 73,142 73,142 28,000 100 233,711 Taiwan Investment company 363,997 363,997 33,316,236 100 169,012 Taiwan Manufacturin g and sale of connectors for electronic signal cables 393,898 393,898 21,960,504 83.58 160,234 Malaysi a . Holding company 42,840 42,840 197,459,985 51.42 2,022,011 British Virgin Islands Holding company 294,816 294,816 9,600,000 100 691,548 Hong Kong Holding company 503,644 503,644 3,120,001 100 1,563,331 Hong Kong Holding company 3,292,646 3,292,646 665,799,420 100 3,751,673 Taiwan Electronic Components 646,000 646,000 20,187,500 16.93 477,990 Taiwan Electronic Components 250,000 250,000 7,812,500 5.48 184,983 Singapo re Manufacturin g and sale of connectors 2,329 2,329 100,000 30 1,104	Net income (loss) of	(unless otherwise noted) Investment gains and losses recognized in the current period Rema rks $ 875,838 10,856 ( 38,528) ( 38,534) 254,764 Note 1 16,329 Note 2 233,021 Note 3 488,961 Note 4 ( 51,018) ( 19,738) ( 68) Note 5
		the Investee for current period $ 875,838 10,856 ( 38,528) ( 46,104) 495,457 16,329 233,021 488,961 ( 301,348) ( 301,348) ( 296)

~88~

(MALASIA) N (S) PTE. for electronic SDN. BHD. LIMITED. (PIS) signal cables

Note 1: The company mainly reinvests in Pan-International Electronics (Malaysia) Sdn indirectly through PIB Bhd. and Pan-International Wire & Cable (Malaysia) Sdn. Bhd. from the production of cable-attached connectors or electronic products and sales in Malaysia.

Note 2: The company mainly reinvests in New Ocean Precision Component (Jiangxi) Co., Ltd. indirectly through BAE. Please refer to Table 8 for details on the disclosure of information about the investment in the mainland China. Note 3: The company mainly reinvests in Dongguan Pan-International Precision Electronics Co., Ltd. indirectly through TUI. Please refer to Table 8 for details on the disclosure of information about the investment in the mainland China. Note 4: The company mainly reinvests in Honghuasheng Precision Electronics (Yantai) Co., Ltd. indirectly through EHH. Please refer to Table 8 for details on the disclosure of information about the investment in the mainland China.

Note 5: PIS, the Company's sub-subsidiary, conducted a cash capital increase in the first quarter of 2023. The Group did not subscribe for the shares in proportion to the shareholding, resulting in a drop of the shareholding by 30%. Note 6: The relevant figures in this table are in NTD. Where foreign currencies are involved, they will be converted into NTD at the exchange rate on the date of financial reporting.

~89~

Pan-International Industrial Corp. and Subsidiaries

Mainland China investment information - Basic information

January 1 to December 31, 2023

Table 8

Unit: NTD thousand

(unless otherwise noted)

Name of	Main Businesses and Products Production and sale of hard single (double) side printed circuit boards, hard multi-layer printed circuit boards, flexible multi-layer printed circuit boards, and other printed circuit boards Manufacturi ng and sale of wires, cables, connecting wires, connecting wire connectors, and wire plugs.	Paid-in Capital $ 2,634,918 503,644	Metho d of Invest ments (Note 2) Cumulative outward remittance of investment amount from Taiwan at the beginning of the period 2 $ 2,717,835 2 383,875 -	Investment Flows	Investment Flows	Investment Flows	of current Cumulative outward remittance of the investment amount from Taiwan in the period end Inward $ - $ 2,717,835 383,875	Net income (loss) of the Investee for current period $ 540,767 233,021	% Ownership	Investment gains	Book value of the investment at the end of the period $ 3,751,136 1,563,332 -	Investment gains repatriated as of the end of the period Rem arks $ 517,097 Note 4 Note 6
the investee					Outward	period
						$ - -				and losses recognized in the
in mainland									of Direct or
									Indirect Investment 100 100	current period (Note 3) $ 540,767 233,021
China Honghua sheng Precision Electroni cs (Yantai) Co., Ltd. Donggua n Pan- Internati onal Precision Electroni cs Co., Ltd.

~90~

Pan-	Production		3
Internati	and sales of	12,981		-		-	-	-		11,687	100	11,687	144,744	-
onal	electrical
Sunrise	cables,
Trading	computer
Corp.	accessories,
	wireless
	Bluetooth,
	Turnkey, etc.
Fuyu	Engaging in		2												Note
propertie	the e-	5,069,189			836,848	-	-		836,848	107,438	16.87	-	760,802	-	8
s	commerce
(Shangha	business of
i)	industrial
Co., Ltd.	design, other
	specialized
	design
	services, car
	rental, retail
	of other
	commodities
	, sale of
	computer
	and
	peripheral
	equipment
	and
	software,
	retail of
	communicati
	on
	equipment,
	retail of
	audio-visual
	equipment,
	retail of
	spare parts
	and supplies
	for
	locomotives,
	and e-
	commerce of
	retail goods
	and
	equipment
	above.

~91~

New	Manufacturi		2
Ocean	ng and	294,816		-	-	-	-	16,329	100	16,329	691,547	-
Precision	operation of
Compon	various types
ent	of plugs and
(Jiangxi)	sockets and
Co., Ltd.	telecommuni
	cations.
CJ	Manufacture		3
Electric	and sales of	251,862		-	-	-	-	144,660	100	144,660	672,156	-
Systems	automotive
Co., Ltd.	wiring
	harness
	products
YiBing	Auto parts		3					( 59,563)	100	( 59,563)	103,547
Pan-	and	162,176		-	-	-	-					-
Internati	accessories,
onal	smart
Vehicle	vehicle
Wire	equipment
Co., Ltd.	manufacturi
	ng, etc.

~92~

	The cumulative amount of outward			In compliance with the investment limit
	remittance of investment from			stipulated by the Investment Commission,
	Taiwan to mainland China at the end		Investment amount approved by the	MOEA for investment in mainland China.
Company name	of the period (notes 5 and 6)		Investment Commission, MOEA	(note 7).
Pan-International	$	$		$
Industrial Corp.	4,354,402	6,278,334		-

Note 1: The relevant figures in this table are in NTD. Where foreign currencies are involved, they will be converted into NTD at the exchange rate on the date of financial reporting.

Note 2: There are three investment modes:

1. Direct investment in mainland China.

2. Re-investment in mainland China through Pan Global Holding Co., Ltd. of a third region.

3. Other modes.

The Company invests in investee companies in Mainland China through its investment business in China, including Pan-International Sunrise Trading Corp., CJ Electric Systems Co., Ltd., and YiBing Pan-International Vehicle Wire Co., Ltd. Except that the Company shall apply to the Department of Investment Review, MOEA for permission in advance, other reinvestments do not need to apply to the Department of Investment Review.

Note 3: The field of investment gains and losses recognized in the current period is recognized under the audited financial statements.

Note 4: In the first quarter of 2012, the company acquired 100% of the equity of East Honest Holdings Limited through the subsidiary Pan Global Holding Co., Ltd. and indirectly acquired Honghuasheng Precision Electronics (Yantai) Co., Ltd.; the investment amount approved by the Investment Commission, MOEA was USD 107,217 thousand.

Note 5: As of December 31, 2023, the Company has the following investment withdrawal cases approved by the Department of Investment Review, MOEA:

Date September 5, 2003 December 9, 2010 May 30, 2011 May 30, 2011 May 30, 2011	Approval letter No. Investor Company 0920028972 Dongguan Junwang Technology Co., Ltd. 09900496780 Saibo Digital Technology (Guangzhou) Co., Ltd. 10000205680 Yunnan Saibo Digital Technology Co., Ltd. 10000205690 Chongqing Saibotel Digital Square Co., Ltd. 10000205700 Nanchong Saibo Digital Square Co., Ltd.	Original investment amount remitted from Taiwan US$91 thousand 476 thousand 190 thousand 454 thousand 58 thousand USD 1,269 thousand	Original investment amount remitted from Taiwan US$91 thousand 476 thousand 190 thousand 454 thousand 58 thousand USD 1,269 thousand

Because these reinvestment companies suffer losses, the amount of investment originally remitted from Taiwan cannot offset the amount of investment in mainland China. Note 6: The company received the letter from the Investment Commission, MOEA referenced Jing-Shen-II No. 10000518690 in November 2011 for cancellation of the approved investment amount of US$500 thousand in Dongguan Pan-International Precision Electronics Co., Ltd. which had not yet been invested; on October 30, 2014, the company received the letter from the Investment Commission, MOEA referenced Jing-Shen-Er-Zi No. 10300233110 for transfer of 42 companies including Qingdao Saiboter Digital Technology Square Co., Ltd. to Samoa Le Zhiwan Ranch Holding Investment Limited; in March 2017, the company received the letter from the Investment Commission, MOEA referenced Jing-Shen-Er-Zi No. 10600038030 for cancellation of the approved investment amount of US$5,200 thousand in UER Battery Technology (Shenzhen) Co., Ltd. which had not yet been invested.

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Note 7: The Company received a letter from the Industrial Development Bureau, MOEA referenced Jing-Shou-Gong-Zi No.11120436260 in December 2022 certifying the compliance with the operation scope of operation headquarters, and no investment limit is required from November 29, 2022 to November 28, 2025.

Note 8: The Company’s subsidiary Pan Global Holding Co., Ltd. sold 16.87% of its-owned Class A shares of CYBERTAN TECHNOLOGY CORP. in the second quarter of 2021. 16.87% of Class A shares, and indirectly disposed of its investee Fuyu properties (Shanghai) Co., Ltd. in mainland China. As of December 31, 2023, the Company indirectly owned 16.87% Class B of its reinvestment business, Fuyu properties (Shanghai) Co., Ltd..

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Pan-International Industrial Corp. and Subsidiaries

Information on major shareholders

December 31, 2023

Table 9

Name of major shareholders Hon Hai Precision Industry Co., Ltd.

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Share
Number of shares held Shares Ratio
107,776,254 20.79%
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Note 1: The information of major shareholders in this table is based on the information from the Central Depository on the last business day at the end of each quarter, covering shareholders holding more than 5% of the company’s common and special shares that have completed scriptless registration (including treasury shares).

The share capital reported in the financial report and the actual number of shares that have completed the scriptless registration may be different due to differences in the basis of compilation and calculation. Note 2: If the shareholder puts the shares into a trust, the aforementioned information will be disclosed by the trustors’ individual account opened by the trustee. As for the insider declaration of more than 10% shareholdings by shareholders pursuant to the Securities and Exchange Act Market Observation Post System.

Note 3: The preparation principle of this table is to calculate the distribution of the balance of each credit transaction based on the shareholders’ register on the book-close day of the extraordinary shareholders' meeting (short-sale securities are not purchased back).

Note 4: Shareholding ratio (%) = total number of shares held by the shareholder/total number of shares that have completed scriptless registration.

Note 5: The total number of shares (including treasury shares) that have completed scriptless registration is 518,346,282 shares = 518,346,282 (common shares) + 0 (special shares).

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