PI — Audit Report / Information 2022

Dec 29, 2022

Pan-International Industrial Corp. and Subsidiaries

CONSOLIDATED FINANCIAL STATEMENTS AND AUDITORS’ REPORT

2022 AND 2021 (Stock code 2328)

Company 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

2022 and 2021 Consolidated Financial Statements and Auditors’ Report

Table of Contents

		Item	Page
One.	Cover		1
Two.	Table of Contents		2
Three.	Declaration		3
Four.	Auditors’ Report		4 ~ 9
Five.	Consolidated Balance Sheets		10 ~ 11
Six.	Consolidated Statements of Comprehensive Income		12 ~ 13
Seven.	Consolidated Statements of Changes Equity		14
Eight.	Consolidated Statements of Cash Flows		15
Nine.	Notes to consolidated financial reports		16 ~ 74
	I	Organization and operations	16
	II	The Authorization of Financial Reports	16
	III	Application of Newly Released and Revised Standards and
		Interpretations	16 ~ 17
	IV	Summary of Significant Accounting Policies	17 ~ 30
	V	Major Sources of Uncertainty in Significant Accounting Judgments,
		Estimates, and Assumptions	30 ~ 31
	VI	Summary of Significant Accounting Items	31 ~ 55
	VII	Related Party Transactions	55 ~ 58
	VIII	Pledged Assets	58 ~ 59
	IX	Significant Contingent Liabilities and Unrecognized Commitments	60
	X	Major Disaster Losses	60
	XI	Significant Subsequent Events	60
	XII	Others	60 ~ 71
	XIII	Additional Disclosures	71 ~ 72
	XIV	Operating Departments Information	72 ~ 74

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Pan-International Industrial Corp. and Subsidiaries

Declaration of Consolidated Financial Statement of Affiliates

In 2022 (from January 1, 2022 to December 31, 2022), 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

Pan-International Industrial Corp.

Responsible person: Song-Fa Lu

March 14, 2023

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Auditors’ Report

(2023) Cai-Shen-Bao-Zi No. 22004992

To Pan-International Industrial Corp.

Audit Opinions

We have audited the consolidated balance sheet of December 31, 2022 and December 31, 2021, the consolidated comprehensive income sheet, consolidated statement of changes in equity, consolidated statement of cash flows from January 1 to December 31, 2022 and 2021, 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 2022 and as of December 31, 2021, and the consolidated financial performance and consolidated cash flows in 2022 and from January 1 2021 to December 31, 2021.

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 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

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 2022. 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 2022 of Pan-International Group are as follows:

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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 (4) of the consolidated financial statements. As of December 31, 2022, Pan-International Group recognized inventory loss and provision for valuation loss of inventory amounting to NT$4,067,427 thousand and NT$173,508 thousand, respectively.

Pan-International Group mainly produces cables for electronic signals, connectors, PCB and computer peripherals manufactured by subsidiaries. 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. PanInternational 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. 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.

2. 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.

3. 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.

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Appropriateness of Non-Standard Accounting Entries

Description

Accounting entries record the daily transactions that have occurred. They form the financial statement item balances and transaction amounts after posting, accumulating, and classifying. The accounting entries of Pan-International Group are mainly classified into two categories: standard entries and non-standard entries. Standard entries are based on the original transactions' operation processes and approval procedures through the front-end subsystems (sales, purchase, production, and inventory systems). The relevant transaction entries are transferred into the general ledger. For non-standard entries, the manual operation mode is used to directly record and approve other non-automatic transfer transactions into the general ledger.

Due to the variety and complexity of non-standard entries, which involve manual work and judgment, Inappropriate accounting entries may lead to major financial statement misrepresentations. Therefore, the CPA believes that non-standard accounting entries have high inherent risks. Therefore, testing for nonstandard accounting entries is one of the most critical items to check.

The appropriate audit procedure

The audit procedure used and the general summary is specified as follows:

1. Understand and evaluate the nature of non-standard accounting entries as well as the effectiveness of the entry generation process and control and the appropriateness of the division of rights and responsibilities for relevant personnel, including subjects such as inappropriate personnel, time, and accounting.

2. Based on the preceding understanding and evaluation, check the appropriateness of the relevant supporting documents and entries for non-standard entries that were identified as high-risk entries, and ensure they have been established and approved by the responsible personnel.

Additional information - audits conducted by other auditors

Some of the investee companies of Pan-International Group accounted for under the equity method were presented in the consolidated financial statements. We did not audit 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 companies 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, 2022 and 2021, amounted to NT$6,461,095 thousand and NT$6,473,851 thousand, respectively, accounting for 25% and 27% of the consolidated total assets, respectively. Revenue for the years ended December 31,

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2022 and 2021, amounted to NT$7,918,143 thousand and NT$7,356,134 thousand, respectively, accounting for 30% 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 2022 and 2021. We have audited these statements and issued an unqualified opinion and additional information. Auditors’ Reports issued by other accountants are on record for reference.

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 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.

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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 Pan-International 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.

5. 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 2022 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.

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PwC Taiwan

Yung-Chien Hsu

Independent Auditors

Min-Chuan Feng

Former Financial Supervisory Commission, Executive Yuan Approval No.: (1995)Tai-Cai-Cheng-VI No. 13377 Former Securities and Futures Bureau, Financial Supervisory Commission, Executive Yuan Approval No.: Jin-Guan-Cheng-VI-Zi No. 0960038033

March 14, 2023

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Pan-International Industrial Corp. and Subsidiaries Consolidated Balance Sheets December 31, 2022 and 2021

Assets	Note 6 (1) 6 (2) 6 (3) 6 (3) 7 6 (5) 6 (4) 8 6 (5) 6 (6) and 8 6 (7) and 8 6 (8) and 8 6 (9) and 8 6 (10) 6 (24) 6 (13) and 8	December 31,2022 Amount % $ 6,713,571 27 10,239 - 35,075 - 3,555,291 14 4,173,927 16 742,484 3 3,893,919 15 126,203 1 19,250,709 76 1,752,355 7 733,731 3 2,686,495 11 385,399 1 100,319 - 37,072 - 71,071 - 387,352 2 6,153,794 24 $ 25,404,503 100	Unit: NTD thousand December 31,2021 Amount % $ 6,241,785 26 11,336 - 5,707 - 2,917,801 12 3,305,089 13 706,222 3 4,852,387 20 267,069 1 18,307,396 75 2,406,698 10 742,334 3 2,152,912 9 319,099 2 214,527 1 36,218 - 73,568 - 69,672 - 6,015,028 25 $ 24,322,424 100
		Amount $ 6,713,571 10,239 35,075 3,555,291 4,173,927 742,484 3,893,919 126,203 19,250,709 1,752,355 733,731 2,686,495 385,399 100,319 37,072 71,071 387,352 6,153,794 $ 25,404,503	Amount $ 6,241,785 11,336 5,707 2,917,801 3,305,089 706,222 4,852,387 267,069 18,307,396 2,406,698 742,334 2,152,912 319,099 214,527 36,218 73,568 69,672 6,015,028 $ 24,322,424
Current Assets 1100 Cash and cash equivalents 1110 Financial assets at FVTPL - 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 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

(To be Continued)

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Pan-International Industrial Corp. and Subsidiaries Consolidated Balance Sheets December 31, 2022 and 2021

LIABILITIES AND EQUITY	Note	December 31,2022
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 3X2X Total liabilities and equity	6 (11) 6 (19) and 7 7 6 (12) 7 6 (24) 7 6 (13) 6 (14) 6 (15) 6 (16) 6 (17) 6 (18) 9

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

Chairman: Song-Fa Lu

Manager: Song-Fa Lu

Accounting supervisor: Feng-An Huang

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Pan-International Industrial Corp. and Subsidiaries Consolidated Statements of Comprehensive Income January 1 to December 31, 2022 and 2021

Unit: NTD thousand (except in NTD for earnings per share)

Item

2022 2021 Note Amount % Amount % 6 (19) and 7 $ 26,257,340 100 $ 24,226,194 100 6 (4) (22) And 7 ( 22,977,604) ( 87)( 21,577,044)( 89) 3,279,736 13 2,649,150 11 6 (22) ( 305,104) ( 1) ( 265,656 ) ( 1) ( 737,376) ( 3) ( 650,827 ) ( 3) ( 416,502) ( 2) ( 346,780 ) ( 1) 12 (3) 478 - ( 3,682) - ( 1,458,504) ( 6)( 1,266,945)( 5) 1,821,232 7 1,382,205 6 95,027 - 84,741 - 6 (20) 184,276 1 122,932 1 6 (21) 5,732 - 34,659 - 6 (23) ( 41,231) - ( 12,892 ) - 6 (6) ( 8,603) - ( 62,220) - 235,201 1 167,220 1 2,056,433 8 1,549,425 7 6 (24) ( 490,034) ( 2)( 386,828)( 2) $ 1,566,399 6 $ 1,162,597 5

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 benefit (loss) 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 8200 Net income for the period

(To be Continued)

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Pan-International Industrial Corp. and Subsidiaries Consolidated Statements of Comprehensive Income January 1 to December 31, 2022 and 2021

Unit: NTD thousand (except in NTD for earnings per share)

Item

2022 2021 Note Amount % Amount % 6 (13) $ 8,470 - $ 1,547 - 6 (17) ( 708,066 ) ( 3) 847,889 3 6 (24) ( 1,695) - ( 37,195) - ( 701,291)( 3) 812,241 3 6 (17) (18) 487,069 2 ( 308,852)( 1) 487,069 2 ( 308,852)( 1) ($ 214,222)( 1)$ 503,389 2 $ 1,352,177 5 $ 1,665,986 7 $ 1,322,290 5 $ 967,232 4 244,109 1 195,365 1 $ 1,566,399 6 $ 1,162,597 5 $ 1,016,064 4 $ 1,581,837 7 336,113 1 84,149 - $ 1,352,177 5 $ 1,665,986 7 6 (25) $ 2.55 $ 1.87 $ 2.54 $ 1.86

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 Total comprehensive income attributable to: 8710 Owners of the parent company 8720 Non-controlling interests Earnings per share (EPS) 9750 Basic earnings per share 9850 Diluted earnings per share

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Pan-International Industrial Corp. and Subsidiaries Consolidated Statements of Changes Equity January 1 to December 31, 2022 and 2021

Unit: NTD thousand

2021 Balance on January 1 Net income for the period Other comprehensive income recognized for the period Total comprehensive income in the current period Earnings distribution and provisions for 2020: Provision of legal reserve Provision of special reserve Cash dividends Decrease in non-controlling interests The refund of share payments from the investee’s capital reduction exceeds the book value Equity instruments measured at fair value through other comprehensive income Balance on December 31 2022 Balance on January 1 Net income for the 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	Note								Equity attributa	b	le to owners ofthe	le to owners ofthe	parent company								Non-controlling interests		Total Equity
			Common share capital		Capital	surplus					Retained earnings				Otherequities				Total
				I	Capital reserve - ssuancepremium		Capital reserve - Treasury share transaction		Legal reserve		Special reserve		Undistributed earnings		Currency translation difference	F F	Unrealized Gain (Loss) on inancial Assets at air Value through Other Comprehensive Income
	6 (17) 6 (16) 6 (18) 6 (5) (17) 6 (17) 6 (16) 6 (18) 6 (26)		$ 5,183,462 - - - - - - - - - $5,183,462 $ 5,183,462 - - - - - - - - - $5,183,462		$ 1,402,318 - - - - - - - - - $ 1,402,318 $ 1,402,318 - - - - - - - - - $ 1,402,318		$ 101,288 - - - - - - - - - $ 101,288 $ 101,288 - - - - - - - - - $ 101,288		$1,062,342 - - - 76,277 - - - - - $1,138,619 $1,138,619 - - - 130,519 - - - - - $1,269,138		$1,312,274 - - - - 37,450 - - - - $1,349,724 $1,349,724 - - - - ( 277,289 ) - - - - $1,072,435		$ 3,453,829 967,232 1,128 968,360 ( 76,277 ) ( 37,450 ) ( 336,925 ) - 641 336,187 $ 4,308,365 $ 4,308,365 1,322,290 6,548 1,328,838 ( 130,519 ) 277,289 ( 518,346 ) - 41 ( 10,036 ) $ 5,255,632		($ 1,163,132 ) - ( 197,527 ) ( 197,527 ) - - - - - - ($ 1,360,659 ) ($ 1,360,659 ) - 395,292 395,292 - - - - - - ($ 965,367 )		($ 186,592 ) - 811,004 811,004 - - - - - ( 336,187 ) $ 288,225 $ 288,225 - ( 708,066 ) ( 708,066 ) - - - - - - ($ 419,841 )		$11,165,789 967,232 614,605 1,581,837 - - ( 336,925 ) - 641 - $12,411,342 $12,411,342 1,322,290 ( 306,226 ) 1,016,064 - - ( 518,346 ) - 41 ( 10,036 ) $12,899,065		$1,622,505 195,365 ( 111,216 ) 84,149 - - - ( 24,081 ) - - $1,682,573 $1,682,573 244,109 92,004 336,113 - - - ( 86,844 ) - ( 61,540 ) $1,870,302	$12,788,294 1,162,597 503,389 1,665,986 - - ( 336,925 ) ( 24,081 ) 641 - $14,093,915 $14,093,915 1,566,399 ( 214,222 ) 1,352,177 - - ( 518,346 ) ( 86,844 ) 41 ( 71,576 ) $14,769,367

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

Chairman: Song-Fa Lu

Manager: Song-Fa Lu

Accounting supervisor: Feng-An Huang

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

January 1 to December 31, 2022 and 2021

CASH FLOWS FROM OPERATING ACTIVITIES Income before income tax Adjustments income and expenses items Depreciation expenses and amortizations Expected credit impairment (benefit) loss Net benefits of financial assets and liabilities measured at fair value through the income Interest expense Interest income Dividend income Income from rental reduction Share of profits and losses of affiliated companies recognized by the equity method Gain on disposal of investments Net loss from the disposal of property, plant and equipment Unrealized exchange loss (gain) 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 at fair value through profit or loss Disposal of financial assets at fair value through profit or loss Proceeds from disposal of financial assets measured at fair value through other comprehensive income Refund of capital investment in financial assets measured at fair value through other comprehensive income Share capital returned from liquidation of the investee company Acquisition of subsidiaries (deducting cash acquired) Purchase property, plant and equipment assets Proceeds from disposal of property, plant and equipment 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 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 period Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period

Unit: NTD thousand Note January 1 to December 31,2022 January 1 to December 31,2021 $ 2,056,433 $ 1,549,425 6 (22) 603,492 417,290 12 (3) ( 478 ) 3,682 6 (21) ( 33,930 ) ( 29,210 ) 6 (23) 41,231 12,892 ( 95,027 ) ( 84,741 ) 6 (20) ( 87,266 ) ( 25,416 ) - ( 3,123 ) 6 (6) 8,603 62,220 6 (21) - ( 14,520 ) 6 (21) 25,387 4,955 82,895 ( 29,160 ) 35,518 58,548 ( 10,168 ) ( 20,641 ) ( 561,481 ) ( 392,468 ) ( 828,967 ) ( 345,508 ) 50,989 ( 24,185 ) 1,075,026 ( 2,510,368 ) 145,650 ( 93,717 ) ( 665,458 ) 543,444 291,829 ( 54,870 ) ( 1,109,377 ) 1,557,708 167,830 ( 31,598 ) 408,412 85,959 ( 3,597 ) ( 8,414 ) ( 2,628) ( 5,452 ) 1,594,918 622,732 ( 323,690 ) ( 424,956 ) 1,271,228 197,776 - ( 1,902 ) - 5,846 6 (5) - 239,883 78,570 9,060 41 - 6 (28) - ( 100,004 ) 6 (28) ( 958,816 ) ( 624,820 ) 8,273 13,594 ( 284,930 ) 3,368 ( 39,137 ) ( 61,523 ) 95,027 84,741 87,266 25,416 ( 1,013,706 ) ( 406,341 ) 6 (29) 961,159 ( 493,359 ) ( 66,104 ) ( 59,263 ) 6 (16) ( 518,346 ) ( 336,925 ) ( 41,231 ) ( 12,892 ) 6 (18) ( 86,844 ) ( 61,002 ) 6 (26) ( 71,576) - 177,058( 963,441 ) 37,206 ( 130,451 ) 471,786 ( 1,302,457 ) 6,241,785 7,544,242 $ 6,713,571$ 6,241,785

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

Accounting supervisor: Feng-An Huang

Chairman: Song-Fa Lu

Manager: Song-Fa Lu

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Pan-International Industrial Corp. and Subsidiaries Notes to consolidated financial reports 2022 and 2021

Unit: NTD thousand (unless otherwise noted)

I. Organization and operations

Pan-International Industrial Corp. (hereinafter referred to as "the Company") was established in the Republic of China. The main business activities of the company and its subsidiaries (hereinafter referred to as "the group") are the development, manufacturing and sales of computer peripheral products and components such as electronic signal cables, connectors, electronic signal cables with connectors, precision molds, and printed circuit boards.

II. The Authorization of Financial Reports

This Consolidated Financial Statement has been passed by the Board for announcement on March 14, 2023.

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 2022:

New issued/amended/revised standards and interpretations	Effective date of the release of the International Accounting Standards Board
Amendment to IFRS 3 "Index to conceptual framework" Amendment to IAS 16 “Property, plant and equipment: price before reaching intended use” Amendment to IAS 37 "Loss contracts - Cost of performing contracts" Annual improvement from 2018 to 2020	January 1, 2022 January 1, 2022 January 1, 2022 January 1, 2022

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

(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, and revisions of International Financial Reporting Standards (IFRS) recognized by the FSC for application in 2023:

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New issued/amended/revised standards and interpretations	Effective date of the release of the International Accounting Standards Board
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"	January 1, 2023 January 1, 2023 January 1, 2023

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	Effective date of the release of the International AccountingStandards Board
Amendments to IFRS 10 and IAS 28 "Asset sales or investments between investors and their associated enterprises or joint ventures" Amendment to IFRS 16 "Lease Liabilities for Sale and Leaseback" IFRS 17 “Insurance contracts” Amendment to IFRS 17 “Insurance contracts” Amendment to IFRS 17 “Initial Application of IFRS 17 and IFRS 9 ─ Information Comparison” Amendment to IAS 1 "Classification of current or non-current liabilities" Amendment to IAS 1 "Non-current liabilities with contract terms and conditions"	To be decided by IASB January 1, 2024 January 1, 2023 January 1, 2023 January 1, 2023 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.

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) recognized 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) The components of profit and loss and other comprehensive income are attributable to the owners and non-controlling interests of the parent company; the total amount of comprehensive income is also attributable to the owners and non-controlling interests of the parent company, even if it results in a loss of the balance of non-controlling interests.

5. (4) If the changes in the proportion of shareholding over the subsidiary do not result in the loss of control (transactions with non-controlling interests), it is processed as equity transaction and seen as transactions among owners. The difference between the adjustment amount of a non-controlling 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 on initial recognition of the associate or joint venture. Any 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.

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2. Subsidiaries listed in the consolidated financial reports:

% of Ownership

Investor	Investee	Main Business	December 31, 2022	December 31, 2021	Explanation
Pan- International Industrial Corp. Pan- International Industrial Corp. Pan- International Industrial	PAN- INTERNATIONAL ELECTRONICS INC.(PIU) PAN GLOBAL HOLDING CO., LTD. (PGH) Yann-Yang Investments Corp.	Engaged in the import and sales of various electronic products. 100 Engaged in reinvestment in the Asia Pacific and mainland China businesses, and production and manufacturing of electronic signal cables, connectors, and computer peripheral products. 100 Engaged in the domestic investment business. 100		100 100 100	(4) (5) (2) (3) (4) (5) (1) (4) (5)

Corp.

• (1) New Ocean Precision Components (Ganzhou) Co., Ltd., a 2nd-tier subsidiary of YannYang Investments Corp.., was resolved in April 2021.

• (2) Pan-International Precision Electronic Co., Ltd., a 2nd-tier subsidiary of PGH, acquired an 80% equity in CJ Electric Systems Co., Ltd. in June 2021. Hence the new investee was included in this consolidated financial report. Pan-International Precision Electronic Co., Ltd. acquired an additional 20% shares in circulation of CJ Electric Systems Co., Ltd. in September 2022 worth $71,576 in cash. The book value of 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.

• (3) PGH's subsidiary GREAT HAVEN HOLDINGS LTD. was de-registered in November 2022.

• (4) Please refer to Schedule 8 for the detailed disclosure of information on the indirect reinvestment by the subsidiary above in mainland China companies.

• (5) The financial information of individual subsidiaries included in the consolidated financial statements of the Group in 2022 and 2021 has been audited.

• 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.

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The total uncontrolled equity of the Group as of December 31, 2022 and 2021 amounted to NT$1,870,302 and NT$1,682,573, respectively. The following is the information about the significant non-controlling interests of the Group and its subsidiaries:

			Non-controlling interests	Non-controlling interests
		December 31,2022		December	31,2021
Main business			Shareholding		Shareholding
Investee location		Amount	percentage	Amount	percentage
P.I.E.
INDUSTRIAL
BERHAD Malaysia	$	1,832,190	49 $	1,600,134		49
Summary financial information of subsidiaries:
Balance sheet
		December 31,2022		December 31,		2021
Current Assets		$	4,702,333	$	4,226,988
Non-Current Assets			1,334,687		1,113,530
Current liability		(	2,204,321)	(	1,997,828)
Non-current liabilities		(	61,208)	(		48,878)
Net total assets		$	3,771,491	$	3,293,812
Comprehensive Income Statement
			2022		2021
Income		$	7,903,462	$	6,931,817
Net income before tax			550,858			484,971
Income tax expense		(	76,440)	(		103,710)
Net income for the period			474,418			381,261
Other comprehensive	income
(after tax)			184,932	(		221,991)
Total comprehensive	income in
the current period		$	659,350	$		159,270
Total comprehensive	profit and
loss attributable to non-
controlling interests		$	320,312	$		77,373

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Cash Flow Statement Net Cash inflow (outflow) from operating activities Net cash outflow from investment activities Net cash inflow (outflow) 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	2022	2021
	$ 149,676 ( 310,767) 56,396 24,651 ( 80,044) 518,935 $ 438,891	($ 176,491) ( 401,504) 150,317 ( 65,413) ( 493,091) 1,012,026 $ 518,935

(IV) Foreign exchange conversion

1. The presentation currency of this consolidated financial report is the functional currency of the Company, “NTD”.

2. Foreign currency transactions and balances

3. (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.

4. (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.

5. (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.

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

7. Conversion of foreign operations

8. (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:

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     - 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

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

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

  • (2) Held mainly for trading purposes.

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

  • (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.

3. (2) Held mainly for trading purposes.

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

5. (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.

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

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.

3. 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.

(VIII) Financial assets at FVTOCI

1. Financial assets at FVTOCI refer 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, while the impairment loss, interest income, and foreign currency exchange gain 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. Financial assets measured at after-amortization cost refer 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.

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1. The Group measures its 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.

2. 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.

3. (X) Accounts and notes receivable

4. Accounts and notes receivable 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.

5. 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.

6. (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 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 its voting rights. The Group's investment in affiliated enterprises is treated with the equity method and recognized at cost when acquired.

~24~

1. 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.

2. 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.

3. 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.

4. 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.

(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.

2. 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.

3. 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.

4. 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:

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Buildings 20 ~ 40 years Equipment 2 ~ 10 years Others 2 ~ 10 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 10 ~ 40 years.

(XIX) Intangible asset

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

(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.

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1. Goodwill is allocated to cash-generating units for impairment testing. This allocation is based on the identification of the operating department, 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) Notes payable and accounts payable

1. Notes payable and accounts payable refer 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 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.

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2. Pension

• (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.

3. 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 comprehensive income or directly included in equity.

2. 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 concerning 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.

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  3. 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, 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.

  4. 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.

  5. 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.

  6. 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 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

• The Group manufactures and sells 3C related products. 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.

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1. 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.

2. (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) Business combination

1. The Group accounts for business combinations using the acquisition method. Consideration of business combination is determined based on the fair value of assets transferred, the fair value of liabilities created or borne, and the fair value of equity instruments issued. The amount of consideration includes the fair value of any asset or liability given rise by contingent consideration. Acquisition-related costs are expensed at the time incurred. Identifiable assets acquired and liabilities borne in a business combination are measured at fair value as of the acquisition date. The Group accounts for acquisitions on a transaction-by-transaction basis. Components of non-controlling interests that represent shareholders’ current ownership and shareholders’ proportional entitlement to a business’ net assets in the event of liquidation are measured at fair value or based on the percentage of non-controlling interests relative to the acquirer’s net identifiable assets as of the acquisition date; all other components of noncontrolling interests are measured at fair value as of the acquisition date.

2. If the sum of consideration, acquiree’s non-controlling interests, and fair value of acquiree’s equity currently held exceeds the fair value of identifiable assets acquired and liabilities borne from the acquisition, the excess is recognized as goodwill on the acquisition date; if the fair value of identifiable assets acquired and liabilities borne from the acquisition exceeds the sum of consideration, acquiree’s non-controlling interests, and fair value of acquiree’s equity currently held, the shortfall is recognized through current profit and loss on the acquisition date.

(XXXIII) Operating 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 see below for a detailed description of the uncertainties of significant accounting judgments, estimates, and assumptions:

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(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 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.

VI. Summary of Significant Accounting Items

(I) Cash and cash equivalents

occur. mary of Significant Accounting Items Cash and cash equivalents
Cash on hand and working capital Checking and demand deposit accounts Time deposit Bond repos	December 31,2022	December 31,2021
	$ 741 4,607,881 1,855,202 249,747	$ 584 4,752,828 1,488,373 - $ 6,241,785
	$ 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. The bank deposits pledged by the Group as of December 31, 2022 and 2021 are classified as other current assets and other non-current assets. Please refer to Note 8 for details.

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(II) Financial assets at FVTPL

Financial assets at FVTPL
Item	December 31,2022 $ 10,239 -	December 31,2021 $ 9,224 2,112
Current items: Mandatory financial assets measured at fair value through income Open-end funds Foreign exchange forward contracts
	$ 10,239	$ 11,336

1. The financial products held by the Group in 2022 and 2021 were recognized as net gains amounting to NT$33,930 and NT$29,210, respectively.

2. The transaction and contract information of non-hedging derivative financial assets are explained as follows:

explained as follows:
Derivative financial assets		December31,	2021
		Contract amount (Nominal principal) (NT$ thousand) Contractperiod RMB (BUY) 321,135 December 2021 - March 2022 USD (SELL) 50,000	Contractperiod
Current items: Foreign exchange forward contracts

Foreign exchange forward contracts

The foreign exchange forward transactions entered into by the Group are US dollar forward transactions (selling USD to buy RMB) to avoid the exchange rate risk of working capital, but hedge accounting is not applicable. As of December 31, 2022, the foreign exchange forward transactions above have been squared and settled.

1. The group has not pledged financial assets measured at fair value through income.

(III) Notes and accounts receivable

Note receivable Accounts receivable Less: Allowance for impairment loss	December 31,2022 $ 35,075 3,560,514 ( 5,223) $ 3,590,366	December 31,2021 $ 5,707 2,927,776 ( 9,975) $ 2,923,508	December 31,2021

1. The Group does not hold any collateral.

2. The balance of accounts receivable and notes receivable as of December 31, 2022 and 2021 were generated from customer contracts. The balance of accounts and notes receivable from customer contracts on January 1, 2021, amounted to NT$2,570,473.

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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, 2022 and 2021, 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.

(IV) Inventory

Inventory
Raw materials Work in process Finished products Raw materials Work in process Finished products		December 31,2022
	Cost	Allowance for valuation losses	Book value
	$ 1,410,711 993,314 1,663,402	($ 23,541) ( 19,990) ( 129,977) ($ 173,508) December 31,2021	$ 1,387,170 973,324 1,533,425 $ 3,893,919
	$ 4,067,427
	Cost	Allowance for valuation losses	Book value $ 1,449,073 1,009,513 2,393,801 $ 4,852,387
	$ 1,494,871 1,035,532 2,498,723 $ 5,029,126	($ 45,798) ( 26,019) ( 104,922) ($ 176,739)

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

Cost of inventory sold Inventory valuation loss Income from sales of scrap materials	2022	2021
	$ 23,046,535 26,679 ( 95,610)	$ 21,628,992 6,245 ( 58,193)
	$ 22,977,604	$ 21,577,044

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

Item	December 31,2022	December 31,2021
Non-current items: Equity instruments Listed and OTC stocks Non-listed, OTC, or emerging stocks Total	$ 827,081 925,274	$ 1,621,037 785,661
	$ 1,752,355	$ 2,406,698

1. For information on changes in fair value recognized in other comprehensive income of the Group in 2022 and 2021, refer to Note 6 (17), other equities.

2. The fair value of equity instruments sold by the Group in 2021 was NT$761,284, and the

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accumulated disposal benefits were NT$336,187, which were transferred from other equity to undistributed earnings. According to the agreement, the sale price of the preceding equity transaction shall be collected within 18 months after the closing date. As of December 31, 2023, the Group has not received the sale price of NT$521,401, which is listed as other receivables. The other receivables mentioned above have already been recovered on March 14, 2023, amounted to NT$268,933.

1. The Group did not pledge any of the financial assets measured at fair value through other comprehensive income on December 31, 2022 and 2021.

(VI) Investment by equity method

Investment by equity method
Long Time Tech. Co., Ltd.	December 31,2022	December 31,2021 $ 742,334
	$ 733,731

1. The investment of the Group accounted for investment by equity method in 2021 was based on the evaluation of the audited financial statements of these associates covering the same period.

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

as follows:
Current net loss of continuing business units Total comprehensive income in the current period	2022 ($ 8,603) ($ 8,603)	2021
		($ 62,220) ($ 62,220)

1. The Group's subsidiaries Pan Global Holding Co., Ltd. and Tekcon Electronics Corporation hold 22.41% of the equity of Long Time Tech. Co., Ltd., but they do not include Long Time Tech as consolidated entity because they don’t acquire the control of the company.

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

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(VII) Property, plant, and equipment

January 1, 2022 Cost Cumulative depreciation 2022 January 1 Addition Disposal Re-classification Depreciation expenses Net exchange difference December 31 December 31, 2022 Cost Cumulative depreciation January 1, 2021 Cost Cumulative depreciation 2021 January 1 Addition Acquisition through business combination Disposal Transfer Depreciation expenses Net exchange difference December 31 December 31, 2021 Cost Cumulative depreciation	Land $ 23,211 - $ 23,211 $ 23,211 - - - - 406 $ 23,617 $ 23,617	Buildings	Equipment	Others $ 789,034 ( 585,793) $ 203,241 $ 203,241 115,849 ( 5,085) 5,680 ( 75,827) 2,129 $ 245,987 $ 881,950 ( 635,963) $ 245,987 Others $ 687,857 ( 546,963) $ 140,894 $ 140,894 101,010 4,936 ( 4,513) 2,099 ( 41,295) 110 $ 203,241 $ 789,034 ( 585,793) $ 203,241	Unfinished construction and equipment to be accepted $ 235,854 - $ 235,854 $ 235,854 95,918 ( 45) ( 129,134) - 9,747 $ 212,340 $ 212,340 - $ 212,340 Unfinished construction and equipment to be accepted	Total $ 6,815,231 ( 4,662,319) $ 2,152,912 $ 2,152,912 914,370 ( 33,660) 89,433 ( 498,139) 61,579 $ 2,686,495 $ 7,664,398 ( 4,977,903) $ 2,686,495 Total $ 5,991,599 ( 4,320,915) $ 1,670,684 $ 1,670,684 756,458 109,968 ( 18,549) - ( 323,091) ( 42,558) $ 2,152,912 $ 6,815,231 ( 4,662,319) $ 2,152,912
		$ 656,219 ( 394,779) $ 261,440 $ 261,440 20,930 - 87,376 ( 25,326) 13,380 $ 357,800 $ 811,024 ( 453,224) $ 357,800 Buildings $ 577,238 ( 348,789) $ 228,449 $ 228,449 18,920 35,954 ( 632) 11,128 ( 19,049) ( 13,330) $ 261,440 $ 656,219 ( 394,779) $ 261,440	$ 5,110,913 ( 3,681,747) $ 1,429,166 $ 1,429,166 681,673 ( 28,530) 125,511 ( 396,986) 35,917 $ 1,846,751 $ 5,735,467 ( 3,888,716) $ 1,846,751 Equipment $ 4,673,728 ( 3,425,163) $ 1,248,565 $ 1,248,565 407,035 69,078 ( 9,307) - ( 262,747) ( 23,458) $ 1,429,166 $ 5,110,913 ( 3,681,747) $ 1,429,166
	$ 23,617 Land
	$ 24,010 - $ 24,010 $ 24,010 - - - - - ( 799) $ 23,211 $ 23,211 - $ 23,211				$ 28,766 - $ 28,766 $ 28,766 229,493 - ( 4,097) ( 13,227) - ( 5,081) $ 235,854 $ 235,854 - $ 235,854

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1. Please refer to Note 6 (27) for detailed explanation on increases in property, plant and equipment following the business combination in the 2[nd] quarter of 2021.

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

(VIII) Lease transaction - Lessee

1. The underlying lease 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 Houses Land Houses	December 31,2022 Book value $ 202,154 183,245 $ 385,399 2022 Depreciation expenses $ 7,636 87,328 $ 94,964		December 31,2021
			Book value
			$ 158,973 160,126 $ 319,099 2021
			Depreciation expenses
			$ 3,335 77,615 $ 80,950

1. Increases in right-of-use assets in 2022 and 2021, were reported at NT$134,446 and NT$115,822, respectively. The NT$79,535 increase in right-of-use assets in 2021 was the result of business combination. Please refer to Note 6 (27) for details.

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

Items affecting current profit and loss	2022 $ 8,501 16,086	2021
		$ 5,425 12,848
Interest expenses on lease liabilities Expenses of short-term lease contracts

1. The total cash outflow of the Group’s leases in 2022 and 2021 amounted to NT$90,691 and NT$77,536, respectively.

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

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(IX) Investment property

January 1, 2022 Cost Cumulative depreciation and impairment 2022 January 1 Transfer Depreciation expenses Net exchange difference December 31 December 31, 2022 Cost Cumulative depreciation and impairment January 1, 2021 Cost Cumulative depreciation and impairment 2021 January 1 Depreciation expenses Net exchange difference December 31 December 31, 2021 Cost Cumulative depreciation and impairment	Land $ 105,386 - $ 105,386 $ 105,386 ( 27,147) - 868 $ 79,107 $ 79,107 - $ 79,107 Land $ 112,596 - $ 112,596 $ 112,596 - ( 7,210) $ 105,386 $ 105,386 - $ 105,386	Buildings $ 211,248 ( 102,107) $ 109,141 $ 109,141 ( 87,376) ( 5,943) 5,390 $ 21,212 $ 108,215 ( 87,003) $ 21,212 Buildings $ 221,048 ( 99,086) $ 121,962 $ 121,962 ( 5,926) ( 6,895) $ 109,141 $ 211,248 ( 102,107) $ 109,141	Total $ 316,634 ( 102,107) $ 214,527 $ 214,527 ( 114,523) ( 5,943) 6,258 $ 100,319 $ 187,322 ( 87,003) $ 100,319 Total $ 333,644 ( 99,086) $ 234,558 $ 234,558 ( 5,926) ( 14,105) $ 214,527 $ 316,634 ( 102,107) $ 214,527	Total

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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	2022	2021
	$ 35,979 $ 5,943	$ 39,333 $ 5,926

1. The fair value of the investment property held by the Group on December 31, 2022 and 2021, amounted to NT$419,829 and NT$520,052, respectively, which was obtained from the evaluation from public information announced by the government. The result indicated Level 3 fair value.

2. Please refer to note 8 for details of the Group's pledged investment property.

(X) Intangible assets - Goodwill

Intangible assets-Goodwill
Balance at the beginning of the period Net exchange difference Ending balance	December 31,2022	December 31,2021
	$ 36,218 854	$ 36,963 ( 745) $ 36,218
	$ 37,072

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.

(XI) Short-term borrowings

antai) Co., Ltd. ort-term borrowings
Nature of the borrowings December 31,2022 Interest Rate Collateral Bank loans - Credit loans $ 2,101,238 2.41%-5.39% None. Nature of the borrowings December 31,2021 Interest Rate Collateral Bank loans - Credit loans $ 1,028,206 0.50%-0.66% None. As of December 31, 2023, the Group had an undrawn limit of NT$7,675,351.	December 31,2022	Interest Rate	Collateral
	$ 2,101,238 December 31,2021	2.41%-5.39% Interest Rate	None. Collateral

(XII) Other payables

Other payables
Salary, bonus, and employee remuneration payable Equipment payment payable Consumables payable Repair expenses payable Utility fees payable Others	December 31,2022	December 31,2021 $ 542,179 235,818 66,976 57,563 39,702 304,257
	$ 596,849 194,860 148,760 76,253 63,263 562,814
	$ 1,642,799	$ 1,246,495

(XIII) Pension

1. Measures for defined retirement benefits

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• (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. paragraph.

• (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 (asset) liabilities "Other non-current assets” listed in the table "Other non-current liabilities" listed in the table	December 31,2022 $ 86,252 ( 91,357) ($ 5,105) $ 5,105 $-	December 31,2021 $ 88,252 ( 80,492) $ 7,760 $ 864 $ 8,624	December 31,2021

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

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 2021 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 (Note) This does not include	Present value of defined benefit obligation	Fair value of plan assets	Net defined benefit liabilities
	$ 88,252 548 540 89,340 - ( 2) ( 3,047) 774 ( 2,275) - ( 813) $ 86,252	($ 80,492) - ( 496) ( 80,988) ( 6,195) - - - ( 6,195) ( 4,174) - ($ 91,357) Fair value of plan assets	$ 7,760 548 44
			8,352
			( 6,195) ( 2) ( 3,047) 774
			( 8,470) ( 4,174) ( 813) ($ 5,105) Net defined benefit liabilities
	Present value of defined benefit obligation
	$ 87,952 ($ 75,243) 630 - 253 ( 218) 88,835 ( 75,461) - ( 1,164) 14 - ( 2,091) - 1,694 - ( 383) ( 1,164) - ( 4,067) ( 200) 200 $ 88,252 ($ 80,492) the amount contained in interest income		$ 12,709 630 35 13,374 ( 1,164) 14 ( 2,091) 1,694 ( 1,547) ( 4,067) - $ 7,760 or expense

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• (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 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		2022 1.20% 2.00% 1.30% 2.00%		2021
				0.65% 2.00% 0.7% 2.0%

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, 2022 Effect on the present value of defined benefit obligations December 31, 2021 Effect on the present value of defined benefit obligations	Discount rate Increase by 0.25% Decrease by0.25% ($ 1,300) $ 1,337 ($ 1,449) $ 1,493	Discount rate Increase by 0.25% Decrease by0.25% ($ 1,300) $ 1,337 ($ 1,449) $ 1,493	Salary increase rate in the future Increase by 0.25% Decrease by 0.25%	Salary increase rate in the future Increase by 0.25% Decrease by 0.25%
	Increase by 0.25%			Decrease by 0.25%
	($ 1,300) ($ 1,449)		$ 1,323	($ 1,293) ($ 1,434)
		$ 1,493	$ 1,469

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.

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

• (6) The Group expected to appropriate $1,701 for payment to the retirement plan in 2023.

• (7) As of December 31, 2022, the weighted average duration of the pension plans of the Company and Tekcon Electronics Corporation were 5 years and 9 years, respectively.

• Measures for defined retirement allocation

• (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 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 Bureau of Labor Insurance. The payment of labor pension shall be based on the balance of the employee's 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 2022 and 2021, the Group recognized pension cost amounting to NT$155,293 and NT$140,467, respectively, in accordance with the above regulations governing the recognition of pension fund.

(XIV) Share capital

As of December 31, 2022, the authorized capital of the Company comprised 600,000,000 shares (including 30,000,000 shares under subscription warrants or subscription rights of convertible bonds); 518,346,282 shares were outstanding with a par value of NT$10 per share.

• (XV) 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.

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• (XVI) Retained earnings

• 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.

• 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.

• 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' 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.

• 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.

• 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.

• The shareholders resolved to pass distribution of 2021 and 2020 earnings during the meetings held on June 15, 2022 and July 15, 2021; details are as follows:

Legal reserve Special reserve Cash dividends	2021 Amount Dividend per share(NT$) $ 130,519 ( 277,289) 518,346 $ 1.00 $ 371,576	2021 Amount Dividend per share(NT$) $ 130,519 ( 277,289) 518,346 $ 1.00 $ 371,576	2020 Amount Dividend per share(NT$)	2020 Amount Dividend per share(NT$)
	Amount			Dividend per share(NT$)
	$ 130,519 ( 277,289) 518,346	$ 1.00	$ 76,277 37,450 336,925	$ 0.65
	$ 371,576		$ 450,652

(XVII) Other items of equity

January 1, 2022 Unrealized profit or loss of financial products - Group Currency conversion difference - Group December 31, 2022	Financial assets at FVTOCI $ 288,225 ( 708,066) - ($ 419,841)	Adjustment for currencyconversion	Total
		($ 1,360,659) - 395,292 ($ 965,367)	($ 1,072,434) ( 708,066) 395,292 ($ 1,385,208)

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Financial assets at FVTOCI Adjustment for currencyconversion January 1, 2021 ($ 186,592) ($ 1,163,132) Unrealized profit or loss of financial products - Group 811,004 - Transfer of valuation adjustment to retained earnings -Group ( 373,072) - Tax on transfer of valuation adjustment to retained earnings - Group 36,885 - Currency conversion difference - Group - ( 197,527) December 31, 2021 $ 288,225 ($ 1,360,659) (XVIII)Non-controlling interests 2022 January 1 $ 1,682,573 $ Share of non-controlling interest: Net income for the period 244,109 Business combination - Remeasured value of defined benefit plan 227 Conversion difference from the conversion of financial statements of a foreign operation 91,777 ( Cash dividend payment ( 86,844) ( Decrease in non-controlling interests ( 61,540) December 31 $ 1,870,302 $	Financial assets at FVTOCI	Financial assets at FVTOCI	Adjustment for currencyconversion	Adjustment for currencyconversion	Total
	($ (	186,592) 811,004 373,072) 36,885 - 288,225 2022			($ 1,349,724) 811,004 ( 373,072) 36,885 ( 197,527) ($ 1,072,434) 2021 1,622,505 195,365 36,921 109 111,325) 61,002) - 1,682,573
	$
				$

(XIX) Operating revenue

Operating revenue
Revenue from customer contracts	2022	2021 $ 24,226,194
	$ 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:
Contractual liabilities	December 31,2022 $ 273,608	December 31,2021	January1,2021 $ 395,622
		$ 939,066

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Recognized income of contract liabilities at the beginning of the period:

(XX) (XXI)	Opening balance of contract liabilities recognized as income in the current period Other income Dividend income $ Rental income Subsidy income Other income - Other $ Other 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 Gain on disposal of investments Others ( $	Opening balance of contract liabilities recognized as income in the current period Other income Dividend income $ Rental income Subsidy income Other income - Other $ Other 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 Gain on disposal of investments Others ( $	Opening balance of contract liabilities recognized as income in the current period Other income Dividend income $ Rental income Subsidy income Other income - Other $ Other 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 Gain on disposal of investments Others ( $	2022 $ 660,280	2022 $ 660,280	2021 $ 67,176 2021 25,416 48,643 38,760 10,113 122,932 2021 29,210 4,955) 1,616 14,520 5,732) 34,659
				2022 87,266 45,927 44,221 6,862 184,276 2022 33,930 25,387) 3,854 - 6,665) 5,732	$
			$
			$		$
					$ ( (
		( (	$
			$		$

(XXII) Employee benefit, depreciation and amortization expenses

Bynature Employee benefits expense Salary expenses Labor and national health insurance expenses Pension expenses Other HR expenses Depreciation expenses Amortization expenses	2022 $ 2,933,295 76,851 155,885 222,384 $ 3,388,415 $ 599,046 $ 4,446	2021 $ 2,455,212 74,084 141,132 279,184 $ 2,949,612 $ 409,967 $ 7,323

~45~

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, if the Company still has a cumulative loss, it shall reserve the amount of compensation in advance.

2. The Company’s remuneration to employees in 2022 and 2021 was estimated at NT$79,012 and NT$60,674, respectively. The remuneration to the Directors was estimated at NT$7,901 and NT$6,067, respectively. The aforementioned amount was presented as salary expense in the book.

The years 2022 and 2021 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 2021 employee and director remunerations approved by the board of directors are consistent with the amounts recognized in the 2021 annual financial report.

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

(XXIII) Financial costs

ancial costs
Interest expenses on bank loans Interest expenses on lease liabilities Other financial costs	2022	2021 $ 7,127 5,425 340 $ 12,892
	$ 30,356 8,501 2,374
	$ 41,231

(XXIV) Income tax

1. Income tax expense

(1) Components of income tax expenses:

Income tax for the current period: Income tax arising from current income Extra tax on undistributed earnings Income tax under (over)estimates of previous years Total income tax for the current period Deferred income tax: The original value and reversal of temporary differences Income tax expense	2022	2021
	$ 432,668 46,681 ( 44,744)	$ 329,260 15,606 4,604
	434,605	349,470
	55,429	37,358
	$ 490,034	$ 386,828

~46~

(2) Other comprehensive income related income tax amount:

(2) Other comprehensive income related income tax amount:	ted income tax amount:	ted income tax amount:
2022 Remeasurement of defined benefit obligation $ 1,695 Changes in fair value of financial assets measured at fair value through other comprehensive income - $ 1,695 2. Relation between income tax expense and accounting profit 2022 Calculation of income tax on earnings before taxation at the mandatory tax rate $ 618,461 Expenses to be removed under the tax law ( 46,832) Income exempted from taxation under the tax law - Temporary difference not recognized as deferred income tax liabilities ( 82,094) Extra tax on undistributed earnings 46,681 Effect of investment deduction on income tax ( 1,438) Income tax under (over)estimates of previous years ( 44,744) Income tax expense $ 490,034	2022 $ 1,695 -			2021 $ 310 36,885 $ 37,195 2021 $ 464,120 ( 41,696) ( 5,438) ( 49,695) 15,606 ( 673) 4,604 $ 386,828
	$ 1,695
		$ 618,461 ( 46,832) - ( 82,094) 46,681 ( 1,438) ( 44,744)
		$ 490,034

~47~

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

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			2022
	January1 $ 25,929 1,920 19,179 26,540 $ 73,568 ($ 216,284) ( 72,577) ( 678) ( 1,013) ($ 290,552)	Recognized as income	Recognized as other comprehensive net income	Effect on foreign currency exchange differences $ 710 - 625 298 $ 1,633 $ - ( 3,805) - 952 ($ 2,853)	December 31
		$ 289 ( 350) ( 139) ( 2,581) ($ 2,781) ($ 41,027) ( 9,711) ( 1,601) ( 309) ($ 52,648)	$ - ( 1,349) - - ($ 1,349) $ - - - ( 346) ($ 346)		$ 26,928 221 19,665 24,257 $ 71,071 ($ 257,311) ( 86,093) ( 2,279) ( 716) ($ 346,399)

~48~

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			2021
	January1 $ 37,602 2,492 23,282 26,890 $ 90,266 ($ 196,708) ( 72,125) - ( 1,138) ($ 269,971)	Recognized as income ($ 10,351) ( 429) ( 1,196) ( 346) ($ 12,322) ($ 19,576) ( 5,072) ( 678) 290 ($ 25,036)	Recognized as other comprehensive net income $ - ( 143) - - ($ 143) $ - - - ( 167) ($ 167)	Effect on foreign currency exchange differences		December 31
				($ 1,322) - ( 2,907) ( 4) ($ 4,233) $ - 4,620 - 2 $ 4,622

1. As of December 31, 2022 and 2021, 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$6,317,727 and NT$5,159,680, respectively.

2. The corporate income tax return of the Company has been approved by the tax collection authorities up to 2020.

~49~

(XXV) Earnings 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 Effect of potentially dilutive common shares: Employee remuneration Net income for the period attributable to the common shareholders of the parent company plus the 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 Effect of potentially dilutive common shares: Employee remuneration Net income for the period attributable to the common shareholders of the parent company plus the effect of potential common shares		2022
	After-tax amount	The weighted average number of outstanding shares (1000shares)	Earnings per share (NT$)
	$ 1,322,290 1,322,290 -	518,346 518,346 2,603 520,949 2021	$ 2.55 $ 2.54
	$ 1,322,290
	After-tax amount	The weighted average number of outstanding shares (1000 shares)	Earnings per share (NT$)
	$ 967,232 967,232 -	518,346 518,346 1,733 520,079	$ 1.87 $ 1.86
	$ 967,232

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(XXVI) Transactions with non-controlling interests

Pan-International Precision Electronic 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 noncontrolling 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)

(XXVII) Business combination

1. Pan-International Precision Electronic Co., Ltd., one of the Company’s 2nd-tier subsidiaries, acquired an 80% equity in CJ Electric Systems Co., Ltd. (referred to as “CJ Electric” below) on June 1, 2021 for a sum of RMB 34,054 thousand, and gained controlling interest over CJ Electric. Business registrations were completed on June 1, 2021, and the new entity has since been included in the consolidated report. CJ Electric is mainly involved in the manufacturing of wiring harnesses for automobiles. The purpose of the acquisition is to integrate the resources of the two parties, which in turn creates synergy and expands automobile product lines for the Group.

2. Information on the consideration paid for the acquisition of CJ Electric, the fair value of assets acquired and liabilities assumed on the acquisition date, and the fair value of non-controlling interests on the acquisition date is as follows:

non-controlling interests on the acquisition date is as follows:
Consideration for acquisition - cash Fair value of non-controlling interests Fair value of identifiable assets acquired and liabilities borne Cash Accounts receivable Inventory Other receivables Other current assets Property, plant, and equipment Right-of-use assets Other non-current assets Accounts payable Other payables Current tax liabilities	June 1, 2021
	$ 147,548 36,921 $ 184,469 $ 47,544 244,038 460,705 63,428 15,680 109,968 79,535 864 ( 683,599) ( 119,136) ( 3,359)

~51~

Lease liabilities ( 22,688) Other current liabilities ( 7,190) Other non-current liabilities ( 1,321) Total net identifiable assets 184,469 Goodwill - $

1. The Group merged CJ Electric on June 1, 2021. If it is assumed that CJ Electric has been merged into the Group since January 1, 2021, the Group’s operating revenue and net income before tax in 2021 would have been NT$24,841,930 and NT$1,546,612, respectively.

(XXVIII) Supplementary information on cash flow

1. 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	2022	2021 $ 756,458 105,069 ( 235,818) ( 889) $ 624,820	2021
	$ 914,370 235,818 ( 194,860) 3,488
	$ 958,816

1. Fair value information relating to assets and liabilities acquired through business combination:

Fair value of net identifiable assets Less: fair value of non- controlling interests Cash paid for business combination Less: cash received from business combination Consolidated net cash inflow from business combination	2021
	$ 184,469 ( 36,921) 147,548 ( 47,544) $ 100,004

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(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 January 1 Changes in financing cash flow Effect of exchange rate changes Change in value of subsidiaries Other non-cash changes December 31		2022	2022
	Short-term borrowings	Lease liabilities Total liabilities from financingactivities $ 166,173 $ 1,194,379 ( 74,605) 886,554 2,568 114,441 94,618 94,618 $ 188,754 $ 2,289,992 2021	Total liabilities from financingactivities
	$ 1,028,206 961,159 111,873 -
	$ 2,101,238
	Short-term borrowings	Lease liabilities	Total liabilities from financingactivities
	$ 1,568,333 ( 493,359) ( 46,768) - -	$ 220,959 ( 64,688) ( 329) 22,688 ( 12,457) $ 166,173	$ 1,789,292 ( 558,047) ( 47,097) 22,688 ( 12,457) $ 1,194,379
	$ 1,028,206

VII. Related Party Transactions

(I) Related party’s name and relationship

Related Party Name Relationship with the Group Hon Hai Precision Industry Co., Ltd. and subsidiaries (Hon Hai and With significant influence subsidiaries) on the group Sharp Corporation and subsidiaries (Sharp and subsidiaries) Other related parties Foxconn Technology Co., Ltd. and subsidiaries (FTC and Other related parties subsidiaries) GENERAL INTERFACE SOLUTION LIMITED Other related parties Cyber TAN Technology, Inc and Subsidiaries Other related parties Chery Holding Group and Subsidiaries Other related parties (Note 1) Long Time Tech. Co., Ltd. Affiliates (Note 1) Listed as non-related party in September 2022

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(II) Major transactions with related parties

1. Operating revenue

With significant influence on the group - Hon Hai Precision Industry Co., Ltd. and subsidiaries Other related parties - Sharp and subsidiaries - Others	2022 $ 7,113,019 2,125,811 1,762,340 $ 11,001,170	2021 $ 6,734,570 2,367,757 1,214,101 $ 10,316,428

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

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	2022	2021
	$ 2,524,393 1,492,196 63	$ 2,485,330 1,937,095 ( 951) $ 4,421,474
	$ 4,016,652

The above amount includes purchase, discount, and sale 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 from 30 to 90 days on monthly settlement of open account.

3. Receivables from related parties

account. Receivables from related parties
Other related parties - others With significant influence on the group - Hon Hai Precision Industry Co., Ltd. and subsidiaries Other related parties - Sharp and subsidiaries - Others Less: Allowance for impairment loss	December 31,2022 $ - 3,165,783 788,580 221,535	December 31,2021 $ 18,940 2,505,760 352,461 429,560 3,306,721 ( 1,632) $ 3,305,089
	4,175,898 ( 1,971) $ 4,173,927

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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 - Others	December 31,2022 $ 1,059,124 452,223 - $ 1,511,347	December 31,2021 $ 988,250 324,346 76 $ 1,312,672

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

With significant influence on the group - Hon Hai Precision Industry Co., Ltd. and subsidiaries Other related parties	December 31,2022 $ 105,098 157 $ 105,255	December 31,2021 $ 297,807 70 $ 297,877

The preceding contract liabilities of NT$101,310 and NT$297,369 dated December 31, 2022, and 2021 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.

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

A. Ending balance
With significant influence on the group B. Interest expenses With significant influence on the group	December 31,2022 $ 39,286 2022	December 31,2021 $ 76,578 2021 $ 2,650
	$ 1,658

B. Interest expenses

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7. Others

In an attempt to expand the current line of automobile products, the Group acquired a 50% equity in CJ Electric Systems Co., Ltd. in June 2021 from Hon Hai Precision Industry Co., Ltd. and subsidiaries, a group of companies that has significant influence in the Group. Consideration of this transaction amounted to NT$91,472.

(III) Compensation of key management personnel

(III)Compensation of key management personnel	el
2022 2021 Short-term employee benefits $ 14,599 $ 13,902 Post-employment benefits 240 240 Total $ 14,839 $ 14,142 Pledged Assets The details of the guarantees provided with the group's assets are as follows: Bookvalue Asset item December 31,2022 December 31,2021 Guaranteepurpose Other current assets - pledged fixed deposit $ 676 $ 1,937 Issuing of letter of credit and customs deposit Other non-current assets - pledged fixed deposit 4,848 3,483 Customs deposit Property, plant, and equipment 39,126 42,548 Guarantee mortgage for bank line overdraft (note) Investment property 10,171 9,495 Guarantee mortgage for a bank line Right-of-use assets 55,309 56,175 Guarantee mortgage for a bank line Investment by equity method (Long Time Tech. Co., Ltd.) 204,721 207,123 Contractual liabilities $ 314,851 $ 320,761	2022 $ 14,599 240	2021
		$ 13,902 240

VIII. Pledged Assets

Note: As of December 30, 2022, the land, buildings above has been pledged as a guarantee 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, 2022, the outstanding payment is NT$410,660.

• X. Major Disaster Losses

None.

XI. Significant Subsequent Events

None.

XII. Others

(I) The Group has adopted relevant measures in response to the outbreak of COVID-19. The spread of disease did not have a material impact on the Group's operations and business performance in 2022.

(II) 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 2022 is the same as that in 2021, both of which are committed to maintaining the net debt ratio below 70%.

(III) Financial instrument

1. Types of financial instruments

(IV)As of December 31, 2022 and 2021, the book amounts of the Group's financial assets classified as measured at amortized cost under IFRS 9 (including cash and cash equivalents, bills receivable, accounts receivable [including related parties], and other receivables) were NT$15,220,348 and NT$13,176,604, respectively. The book amounts of financial liabilities classified as amortized costs (including short-term loans, notes payable, accounts payable [including related parties], and other payables) were NT$9,451,177 and NT$8,535,394, respectively. The book amounts of lease liabilities in 2022 and December 31, 2021, were NT$188,754 and NT$166,173, respectively. Please refer to Notes 6 (2) and (5) 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.

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2. Risk management Policy

• (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.

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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. Intensity

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

December 31, 2022

	December 31, 2022
(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 (thousand) Exchange rate Book value (NT$)	Sensitivityanalysis
		Range of change Impact on profit and loss
	$ 154,693 30.71 $ 4,750,622 87,721 6.9646 2,693,031 103,099 4.4131 3,166,170 2,504 4.7019 81,931 354,215 30.71 10,877,954 150,655 30.71 4,626,615 7,392 6.9646 226,934 40,959 4.4131 1,257,851	5% $237,531 5% 134,652 5% 158,309 5% 4,097 5% 231,331 5% 11,347 5% 62,893

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December 31, 2021

	December 31, 2021
(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 (thousand) Exchange rate Book value (NT$)	Sensitivityanalysis
		Range of change Impact on profit and loss
	$ 136,157 27.68 $ 3,768,826 88,708 6.3757 2,462,573 56,691 4.1701 1,569,207 3,782 4.7185 118,452 344,199 27.68 9,527,433 152,958 27.68 4,233,877 16,294 6.3757 452,329 60,002 4.1701 1,660,855	1% $ 37,688 1% 24,626 1% 15,692 1% 1,185 1% 42,339 1% 4,523 1% 16,609

D. Nature

The Group’s currency items were under significant influence of exchange rate fluctuations in 2022 and 2021, with recognition of exchange income (including realized and unrealized items) amounting to a gain of NT$3,854 and NT$1,616, respectively.

Price risk

• 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$17,524 and NT$24,067 in 2022 and 2021, 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.

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(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 repaying 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. When the contract payment is overdue for more than 90 days according to the agreed payment terms, the Group deems 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.

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

Not Past Due Less than 90 days 91 ~ 180 days More than 181 days	December 31,2022 $ 7,717,356 54,012 80 39	December 31,2021 $ 6,214,073 19,208 957 5,966 $ 6,240,204
	$ 7,771,487

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

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• H. Other receivables (including related parties):

• The other receivables of the Group are mainly tax refund receivables, receivable disposal investment, and payment receivables. There is no risk of major nonperformance or repayment issues. Therefore, the allowance loss is measured according to the 12-month expected credit loss amount. The allowance losses recognized by the Group in 2022 and as of December 31, 2021, were NT$0.

• I. The Group classified the accounts receivable of the customers according to the characteristics of the credit rating of the customers, and considered the 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, 2022 and 2021 is as follows:

December 31, 2022	Group1 0.04% $ 7,336,321 $ 2,935 Group1	$	Group2	Group3 0.09% $-	Group3 0.09% $-	Group4 0.1%~100%	Total $ 7,771,487 $ 7,194 Total $ 6,240,204 $ 11,607
			0.04% 428,359	$
Expected loss rate Total Book value Allowance for loss December 31, 2021
						$ 6,807
		$	171	$	-	$ 4,088
			Group2	Group3		Group4 0.1%~100%
	0.04% $ 5,813,366 $ 2,325	$	0.04% 414,897	$	0.09% -
Expected loss rate Total Book value Allowance for loss
						$ 11,941
		$	166	$	-	$ 9,116

• 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.

• 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:

January 1 (Reversed) recognized impairment loss Irrecoverable amount written off Effect of first-time consolidation of subsidiary Effect on foreign currency exchange differences December 31	2022	2021
	$ 11,607 ( 478) ( 4,102) - 167	$ 7,082 3,682 - 752 91 $ 11,607
	$ 7,194

• K. All the Group’s investments in debt instruments measured at amortized cost as

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were at low credit risk as of December 31, 2022 and 2021. Therefore, the book value was measured on the basis of the expected credit loss in a period of 12 months after the balance sheet day.

(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. The instruments selected have appropriate maturities or sufficient liquidity to meet the forecast above and provide sufficient liquidity. 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, 2022 Non-derivative financial	Less than 1year	1 ~ 2years	2 ~ 5years	Total
	$ 95,184 Less than 1year	$ 42,958 1 ~ 2years	$ 57,847 2 ~ 5years	$ 195,989 Total
liabilities: Lease liabilities December 31, 2021 Non-derivative financial
	$ 83,529	$ 82,889	$ 4,645	$ 171,063
liabilities: Lease liabilities

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

(IV) 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 is directly or indirectly observable,

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except those in Level 1. The fair value of the derivative instruments invested by the Group belongs to this level.

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

• 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, 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:

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

December 31, 2022 Financial assets: Repetitive fair value Financial assets measured at fair value through income - open-end funds Financial assets measured at fair value through income - equity securities December 31, 2021 Financial assets: Repetitive fair value Financial assets measured at fair value through income - open-end funds -Foreign exchange forward contracts Financial assets measured at fair value through income - equity securities	Level 1 $ 10,239 $ 827,081 Level 1	Level 2 $- $- Level 2	Level 3 $- $ 925,274 Level 3	Total
				$ 10,239 $ 1,752,355 Total
	$ 9,224 - $ 9,224 $ 1,621,037	$ - 2,112 $ 2,112 $-	$ - - $- $ 785,661	$ 9,224 2,112 $ 11,336 $ 2,406,698

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• (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

  • 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 nonfinancial 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 2022 and 2021.

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1. The following table shows the changes in Level 3 in 2022 and 2021:

January 1 Acquired this period Amounts sold of current period Profit recognized in other comprehensive income The refund of cost and share payment from investee Transfer to Level 3 Effect on foreign currency exchange differences December 31	Equitysecurities	Equitysecurities	Equitysecurities
	2022 $ 785,661 - - 59,706 - - 79,907	2021 $ 1,201,559 1,902 ( 761,284) 368,444 ( 173) ( 1,902) ( 22,885) $ 785,661	2021
	$ 925,274

1. There was no transfer in or out from Level 3 in 2022 and 2021.

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.

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:

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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	Fair value on December 31, 2022	Evaluation techniques	Significant unobservable input value	Range (weighted average) 24% 1.29 20% Range (weighted average) 26% 1.41 20%	Relationship between input value and fair value
	$ 856,726 68,548 Fair value on December 31, 2021	Net asset value method Comparable public company approach Evaluation techniques	Lack of market liquidity discount Price–to-book ratio Lack of market liquidity discount Significant unobservable input value		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
	$ 711,849 73,812	Net asset value method Comparable public company approach	Lack of market liquidity discount Price–to-book ratio Lack of market liquidity discount		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
Equity instruments Equity instruments Financial assets	December 31, 2022 December 31, 2022 Period	Lack of market liquidity discount Price–to-book ratio Input value	±1% ±1% Change
				Favorable change $ 3,785 $ 523	Unfavorable change
Equity instruments Equity instruments	December 30, 2021 December 30, 2021	Lack of market liquidity discount Price–to-book ratio	±1% ±1%		($ 3,785) ($ 523)

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XIII. Additional Disclosures

(I) Information about significant transactions

1. Loans to others: Please refer to Table 1.

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

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

4. 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.

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

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

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

8. 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.

9. Engagement in derivatives trading: Please refer to note 6(2).

10. 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 mainland China or indirectly through a third regional enterprise: Please refer to Tables 4, 5, and 6.

(IV) Information on major shareholders

Information of major shareholders: Please refer to Table 9.

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.

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(II) Segments Information

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

as follows:
2022 Segment Revenue Segment profit and loss 2021 Segment Revenue Segment profit and loss	Electronic Components	Consumer Electronics and Computer Peripherals	Total
	$ 14,807,752 $ 1,382,089 Electronic Components	$ 11,449,588 $ 848,672 Consumer Electronics and Computer Peripherals	$ 26,257,340 $ 2,230,761 Total
	$ 12,618,685 $ 1,037,569	$ 11,607,509 $ 810,225	$ 24,226,194 $ 1,847,794

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:

Income Profit and loss of the segments to be reported Other profit and loss Pre-tax profit and loss of continuing operating departments	2022	2021
	$ 2,230,761 ( 174,328) $ 2,056,433	$ 1,847,794 ( 298,369) $ 1,549,425

(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 2022 and 2021 is shown below:

Mainland China Malaysia Hong Kong USA Others	2022 Income 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 Income 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	2021 Income Non-Current Assets $ 10,684,943 $ 1,584,389 4,018,098 1,105,156 2,792,637 - 2,059,689 679 4,670,827 102,204 $ 24,226,194 $ 2,792,428	2021 Income Non-Current Assets $ 10,684,943 $ 1,584,389 4,018,098 1,105,156 2,792,637 - 2,059,689 679 4,670,827 102,204 $ 24,226,194 $ 2,792,428
	Income			Non-Current Assets $ 1,584,389 1,105,156 - 679 102,204 $ 2,792,428
	$ 11,634,937 3,958,696 6,088,703 2,266,499 2,308,505	$ 2,116,214 1,326,225 - 19,383 134,815	$ 10,684,943 4,018,098 2,792,637 2,059,689 4,670,827 $ 24,226,194
	$ 26,257,340	$ 3,596,637

(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 2022 and 2021:

Customer Group A	2022	2021
	$ 7,113,019	$ 6,734,570

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Pan-International Industrial Corp. and Subsidiaries

Loans to others

January 1 to December 31, 2022

Table 1

Unit: NTD thousand (unless otherwise noted)

Serial No. (Note 1)	Loan extending company	Borrower	Dealing items (Note 2)	Wheth er a related party	Maximum amount of the period (Note 3)	Ending balance (Note 8)	Transaction Amounts	Interest Rate	Loan nature (Note 4)	Business Transaction Amounts (Note 5)	Reason for short-term financing (Note 6)	Provision for allowance for loss for bad debt	Col	lateral	Loans limits for individual entities (Note 7)	Total loan limit (Note 7)	Remarks
													Name	Value
1 2	Pan-International Precision Electronic Co., Ltd. Honghuasheng Precision Electronics (Yantai) Co., Ltd.	CJ Electric Systems Co., Ltd. CJ Electric Systems Co., Ltd.	Other receivables - related parties Other receivables - related parties	Yes Yes	$ 222,750 268,380	$ 44,080 264,480	$ 44,080 264,480	4.00% 3.70%	Short- term financin g Short- term financin g	$ - -	Operating turnover Operating turnover	$ - -	None. None.	None. None.	$ 2,717,086 7,606,520	$ 5,434,172 15,213,040

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

• (1). Fill in 0 for the issuer.

• (2). Investee companies are numbered in sequence in each company type starting numerically from 1.

• Note 2: Dealing items include receivables from affiliated enterprises, receivables from related parties, transactions with shareholders, prepayments, provisional payments, etc. if the nature is a loan to others.

• Note 3: The maximum balance of loans to others in the current year.

• Note 4: The loan shall be recognized under this item if the nature of the fund denotes a business transaction or 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 disclosed. The business transaction amount refers to the total amount of business transactions between the lending company and the borrower in the most recent year.

• Note 6: If the nature of the loan denotes a necessity for short-term financing, the reason and the purpose of the loan by the borrower must 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 a public company submits its lending to the Board of Directors’ meeting for resolution case by case in accordance with paragraph 1, Article 14 of the Regulations Governing Loaning of Funds and Making of Endorsements/ Guarantees by Public Companies, the amount of the resolution of the Board of Directors’ meeting shall be included in the announced balance to disclose the risks it bears before the funds are lent out; if the funds are repaid later, the balance after repayment shall be disclosed to reflect the adjustment of risks. If the Board of Directors’ meeting of a public company authorizes the chairman of the board to extend loans in several trenches or recycle the loan balance within a certain limit in a year in accordance with paragraph 2, Article 14 of the Regulations, the loan limit approved by the Board of Directors’ meeting shall still be used as the balance for the public announcement and declaration. Although the funds will be repaid later, other loans may still be extended again, so the loan limit approved by the Board of Directors’ meeting shall still be used as the balance for the public announcement and declaration.

Table 1 page 1

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Pan-International Industrial Corp. and Subsidiaries Endorsement/guarantee provided January 1 to December 31, 2022

Table 2

Table 2
Serial No. (Note 1)	Name of company of the endorsement/guarantee	Guaranteed Party		Endorsement/ guarantee limit for a single enterprise (Note 3)	Maximum endorsement/ guarantee balance of the period (Note 4)	Endorsement/ guarantee balance of the period (Note 5)	Transaction Amounts (Note 6)	Amount of endorsement/ guarantee backed by assets	Ratio of the cumulative endorsement/ guarantee amount to the net value in the latest financial report	Endorsement/ guarantee limit (Note 3)	Endorsement/ guarantee from the parent company to subsidiary (note 7)	Unit: NTD thousand (unless otherwise noted) Endorsement/ guarantee from subsidiary to parent company (note 7) Endorsement/ guarantee to entities in the Mainland China (Note 7) Remarks
		Companyname	Relation (Note 2)
1 1	P.I.E INDUSTRIAL BERHAD P.I.E INDUSTRIAL BERHAD	PAN- INTERNATIONAL ELECTRONICS(M) SDN.BHD. PAN- INTERNATIONAL WIRE&CABLE(M) SDN.BHD.	2 2	$ 1,885,746 1,885,746	$ 1,236,344 92,646	$ 1,191,184 91,298	$ 620,553 4,245	$ - -	9.23 0.71	$ 3,771,491 3,771,491	Y Y	N N	N N

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

• (1). Fill in 0 for the issuer.

• (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 borrower 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 which is 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 external endorsements/guarantees shall not exceed 100% of the Company's net value, and the limit of endorsements/guarantees for a single enterprise shall not exceed 50% of the Company's net worth.

• The total amount of endorsements/guarantees provided by the Company and its subsidiaries to others shall not exceed 100% of the Company’s net value; the total amount of endorsements/guarantees by the Company and its subsidiaries to a single enterprise shall not exceed 50% of the Company's net worth.

The total amount of endorsements/guarantees provided by the Company to a foreign subsidiary that the Company, directly and indirectly, holds 100% of its voting shares shall not exceed 50% of the parent company's net worth, and the limit for an individual entity shall not exceed 20% of the parent company's net worth.

• 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 subparagraph 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 disclosed.

• 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 entities in Mainland China.

Table 2 page 1

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Pan-International Industrial Corp. and Subsidiaries

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

December 31, 2022

Table 3

Unit: NTD thousand (unless otherwise noted)

								(unless otherwise	noted)
HoldingCompanyName	Type of marketable securities	Name of marketable securities	Relationship with the Holding Company	Financial report Account		Perio	d end
					Number of shares/beneficiary certificates	Book value	Shares Ratio	Fair value	Remarks
Pan-International Industrial Corp. Pan-International Industrial Corp. P.I.E. INDUSTRIAL BERHAD P.I.E. INDUSTRIAL BERHAD P.I.E. INDUSTRIAL BERHAD Yann-Yang Investments Corp. PAN GLOBAL HOLDING CO., LTD. PAN GLOBAL HOLDING CO., LTD. PAN GLOBAL HOLDING CO., LTD.	Common share Common share Open-end funds Open-end funds Open-end funds Common share Common share Common share B share	Innolux Corporation Syntrend Creative Park Co., Ltd. EASTSPRING INVESTMENTS ISLAMIC INCOME FUND AFFIN HWANG AIIMAN MONEY MARKET FUND I AFFIN HWANG USD CASH FUND Lico Technology Corporation UER HOLDINGS CORPORATION FSK HOLDINGS LIMITED CYBERTAN TECHNOLOGY CORP.	None. The largest shareholder of this company is the largest shareholder of Hon Hai Precision Co., Ltd. None. None. None. None. The investment company is evaluated by the equity method; the same as the Company. The investment company is evaluated by the equity method; the same as the Company. The investment company is evaluated by the equity method; the same as the Company.	Financial assets measured at fair value through other comprehensive income - Non-current Financial assets measured at fair value through other comprehensive income - Non-current Financial assets measured at fair value through income - Current Financial assets measured at fair value through income - Current Financial assets measured at fair value through income - Current Financial assets measured at fair value through income - Non-current Financial assets measured at fair value through income - Non-current Financial assets measured at fair value through other comprehensive income - Non-current Financial assets measured at fair value through other comprehensive income - Non-current	74,848,918 12,831,500 23,362 540,584 255,342 3,400,000 1,781,979 50,400,000 28,498,993	$ 827,081 68,548 86 2,067 8,086 - - 34,478 822,248	0.78 5.23 - - 0.60 2.73 8.22 17.50 16.87	$ 827,081 68,548 86 2,067 8,086 - - 34,478 822,248

Table 3 page 1

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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, 2022

Table 4

Table 4				December	31, 2022
Buyer/Seller	Related Party	Relation		Transac	tion Details		Differences in transaction terms transactions and r	from those of general easons	Note/Accounts R
			Purchase(Sale)	Amount	Percentage over total purchase (sale)	Creditperiod	Unit Price	Creditperiod	Balance	Percentage over total notes and accounts receivable(payable)
Pan-International Industrial Corp. Pan-International Industrial Corp. Pan-International Industrial Corp. Pan-International Industrial Corp. Pan-International Industrial Corp. Pan-International Industrial Corp. Pan-International Industrial Corp. Pan-International Industrial Corp. Pan-International Industrial Corp. New Ocean Precision Component (Jiangxi) Co., Ltd. PAN-INTERNATIONAL ELECTRONICS(M) SDN.BHD. PAN-INTERNATIONAL ELECTRONICS(M) SDN.BHD. PAN-INTERNATIONAL ELECTRONICS(M) SDN.BHD. Tekcon Electronics Corporation Pan-International Precision Electronic Co., Ltd. CJ Electric Systems Co., Ltd. CJ Electric Systems Co., Ltd. Tekcon Huizhou Electronics Co., Ltd. Honghuasheng Precision Electronics (Yantai) Co., Ltd.	Hongfutai Precision Electronics (Yantai) Co., Ltd. HONGFUJIN PRECISION ELECTRONICS (YANTAI) CO., LTD. Hongfujin Precision Industry (Wuhan) Co., Ltd. FIH (Hong Kong) Limited Foxconn Technology Co., Ltd. PAN-INTERNATIONAL ELECTRONICS (USA) INC. Honghuasheng Precision Electronics (Yantai) Co., Ltd. Pan-International Precision Electronic Co., Ltd. Foxconn Interconnect Technology Limited Foxconn Interconnect Technology Limited SHARP NORTH MALAYSIA SDN.BHD. Foxconn Technology Co., Ltd Hon Hai Precision Industry Co., Ltd. Foxconn Interconnect Technology Limited Hong-qi Mechatronics (Anhui) Co., Ltd. Chery Automobile Co., Ltd. Ordos Branch Wuhu Chery Automobile Purchasing Co Ltd. Huaian Fulitong Trade Co., Ltd. Fugion Material Technology (Shenzhen) Co., Ltd.	Subsidiary of the indirect reinvestment of Hon Hai Precision Industry Co., Ltd. Subsidiary of the indirect reinvestment of Hon Hai Precision Industry Co., Ltd. Subsidiary of the indirect reinvestment of Hon Hai Precision Industry Co., Ltd. Subsidiary of the indirect reinvestment of Hon Hai Precision Industry Co., Ltd. Other related parties Subsidiary of the Company’s indirect reinvestment Subsidiary of the Company’s indirect reinvestment Subsidiary of the Company’s indirect reinvestment Subsidiary of the indirect reinvestment of Hon Hai Precision Industry Co., Ltd. Subsidiary of the indirect reinvestment of Hon Hai Precision Industry Co., Ltd. Other related parties Other related parties A company that evaluates the Company by the equity method Subsidiary of the indirect reinvestment of Hon Hai Precision Industry Co., Ltd. Subsidiary of the indirect reinvestment of Hon Hai Precision Industry Co., Ltd. Other related parties Other related parties Subsidiary of the indirect reinvestment of Hon Hai Precision Industry Co., Ltd. Subsidiary of the indirect reinvestment of Hon Hai Precision Industry Co., Ltd.	Sales Sales Sales Sales Sales Sales Purchase Purchase Purchase Sales Sales Purchase Purchase Purchase Sales Sales Sales Purchase Purchase	$ 1,064,599 1,840,669 673,647 830,238 349,214 369,362 5,151,125 1,021,693 938,490 1,433,746 2,052,186 1,492,187 309,687 874,419 318,194 218,301 1,113,002 128,811 204,295	9 16 6 7 3 3 47 9 9 99 26 21 4 89 18 7 37 43 5	Monthly settlement 90 days T/T Monthly settlement 90 days T/T Monthly settlement 90 days T/T Monthly settlement 90 days T/T Monthly settlement 90 days T/T Monthly settlement 120 days T/T Monthly settlement 90 days Monthly settlement 90 days Monthly settlement 90 days Monthly settlement 60 days T/T Monthly settlement of 30 days Monthly settlement 90 days Monthly settlement 90 days Monthly settlement 120 days Monthly settlement 90 days Monthly settlement of 30 days Monthly settlement of 30 days Monthly settlement 120 days Monthly settlement 90 days	No sale to other customers with no basis for comparison No sale to other customers with no basis for comparison No sale to other customers with no basis for comparison No sale to other customers with no basis for comparison No sale to other customers with no basis for comparison No sale to other customers with no basis for comparison A single supplier with no basis for comparison A single supplier with no basis for comparison A single supplier with no basis for comparison No sale to other customers with no basis for comparison No sale to other customers with no basis for comparison A single supplier with no basis for comparison A single supplier with no basis for comparison A single supplier with no basis for comparison No sale to other customers with no basis for comparison Negotiated Price is Adopted No sale to other customers with no basis for comparison A single supplier with no basis for comparison Negotiated Price is Adopted	No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference

Note 1: Listed as non-related party in September 2022

Table 4 page 1

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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, 2022

Table 5

Table 5
CompanyName	Related Party	Relation	Balance of accounts receivable from related parties (Note 1)	Turnover Rate	Ove	rdue	Unit: NTD thousand (unless otherwise noted) Accounts receivable from related parties recovered after theperiod Provision for bad debt
					Amount	Actions Taken
Pan-International Industrial Corp. Pan-International Industrial Corp. Pan-International Industrial Corp. Pan-International Industrial Corp. Pan-International Industrial Corp. Pan-International Industrial Corp. Honghuasheng Precision Electronics (Yantai) Co., Ltd. Pan-International Precision Electronic Co., Ltd. Pan-International Precision Electronic Co., Ltd. New Ocean Precision Component (Jiangxi) Co., Ltd. PAN-INTERNATIONAL ELECTRONICS(M) SDN.BHD.	Hongfujin Precision Industry (Wuhan) Co., Ltd. FIH (Hong Kong) Limited HONGFUJIN PRECISION ELECTRONICS (YANTAI) CO., LTD. Hongfutai Precision Electronics (Yantai) Co., Ltd. Hon Hai Precision Industry Co., Ltd. Foxconn Technology Co., Ltd. Pan-International Industrial Corp. Pan-International Industrial Corp. Hong-qi Mechatronics (Anhui) Co., Ltd. Foxconn Interconnect Technology Limited SHARP NORTH MALAYSIA SDN.BHD.	Subsidiary of the indirect reinvestment of Hon Hai Precision Industry Co., Ltd. Subsidiary of the indirect reinvestment of Hon Hai Precision Industry Co., Ltd. Subsidiary of the indirect reinvestment of Hon Hai Precision Industry Co., Ltd. A company that evaluates the Company by the equity method A company that evaluates the company by the equity method Other related parties The Company’s parent company The Company’s parent company Subsidiary of the indirect reinvestment of Hon Hai Precision Industry Co., Ltd. Subsidiary of the indirect reinvestment of Hon Hai Precision Industry Co., Ltd. Other related parties	$ 213,027 182,941 822,526 623,025 105,147 142,108 1,449,202 165,036 187,364 639,744 767,948	2.83 3.07 3.54 2.34 6.17 2.65 4.24 5.44 3.40 2.18 3.71	$ - - 25,540 - 3,157 - - - 8,210 - -	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 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 Payment received after the period	$ 58,988 - - - 10,985 40,096 - 90,647 39,448 29,237 524,660	$ 85 73 329 249 42 57 579 - 75 256 -

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.

Table 5 page 1

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Pan-International Industrial Corp. and Subsidiaries

Significant Inter-company Transactions during the Reporting Period

December 31, 2022

Table 6

Unit: NTD thousand (unless otherwise noted)

Table 6						Unit: NTD thousand (unless otherwise noted)	Unit: NTD thousand (unless otherwise noted)
Serial No. (Note 1)	Transaction Company	Counterparty	Relationship with the transaction parties (Note 2)		Description of Transactio	ns(note 4 and note 7)
				Account	Amount	Transaction Terms	Percentage over consolidated total revenue or total assets (note 3)
0 0 0 1 2	Pan-International Industrial Corp. Pan-International Industrial Corp. Pan-International Industrial Corp. Pan-International Precision Electronic Co., Ltd. Honghuasheng Precision Electronics (Yantai) Co., Ltd.	Honghuasheng Precision Electronics (Yantai) Co., Ltd. Pan-International Precision Electronic Co., Ltd. PAN-INTERNATIONAL ELECTRONICS (USA) INC. Pan-International Industrial Corp. Pan-International Industrial Corp.	1 1 1 2 2	Purchase Purchase Sales Accounts receivable Accounts receivable	$ 5,151,125 1,021,693 369,362 165,036 1,449,202	Note 6 Note 6 Note 5 Note 6 Note 6	20 4 1 1 6

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 parties; 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 a parent company discloses a transaction with a subsidiary, the subsidiary does not have to repeat the disclosure of the transaction; if a subsidiary discloses a transaction with another subsidiary, the other subsidiary does not have to disclose the transaction again):

• (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 the item is classified as an asset or liability, the ratio is calculated with its ending balance as a percentage over the total consolidated assets; if the item is classified as an income, the ratio is calculated with the income accumulated at the end of the period as a percentage over 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: The transaction price is similar to that of the general customer, with a collection period of 120 days monthly settlement.

• Note 6: Transaction prices are negotiated and the collection period is monthly settlement 90 days.

• Note 7: 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.

Table 6 page 1

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Pan-International Industrial Corp. and Subsidiaries

The name and location of the investee company and other relevant information (excluding investee companies in Mainland China) January 1 to December 31, 2022

Table 7

Unit: NTD thousand

Table 7										Unit: NTD thousand	Unit: NTD thousand
Investor	Investor Company	Location	Main Businesses and Products	Original Inves	tment Amount	Shares he	ld as at end of	theperiod	Net income (loss) of the Investee for currentperiod	(unless otherwise noted) Investment gains and losses recognized in the currentperiod Remarks
				End of theperiod	End of lastyear	Shares	Ratio	Book value
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. PAN GLOBAL HOLDING CO., LTD. PAN GLOBAL HOLDING CO., LTD. Tekcon Electronics Corporation	PAN GLOBAL HOLDING CO., LTD. PAN-INTERNATIONAL ELECTRONICS INC. Yann-Yang Investments Corp. Tekcon Electronics Corporation P.I.E. INDUSTRIAL BERHAD (PIB) GREAT HAVEN HOLDINGS LTD. (GHH) BEYOND ACHIEVE ENTERPRISE LTD. (BAE) TEAM UNION INTERNATIONAL LTD. (TUI) EAST HONEST HOLDINGS LIMITED (EHH) Long Time Tech. Co., Ltd. Long Time Tech. Co., Ltd.	The British Virgin Islands USA Taiwan Taiwan Malaysia The British Virgin Islands The British Virgin Islands Hong Kong Hong Kong Taiwan Taiwan	Holding company Sale of electronic products Investment company Manufacturing and sale of connectors for electronic signal cables Holding company Holding company Holding company Holding company Holding company Electronic Components Electronic Components	$ 3,472,484 73,142 363,997 393,898 42,840 - 294,816 503,644 3,292,646 646,000 250,000	$ 3,472,484 73,142 363,997 393,898 42,840 612,775 294,816 503,644 3,292,646 646,000 250,000	$ 12,220 28,000 33,316,236 21,960,504 197,459,985 - 9,600,000 3,120,001 665,799,420 20,187,500 7,812,500	100 100 100 83.58 51.42 100 100 100 100 16.93 5.48	$ 10,654,946 223,008 202,762 193,989 1,939,301 - 687,937 1,358,541 3,803,892 529,010 204,721	$ 955,410 6,955 3,803 4,580 474,418 7 38,813 276,210 548,488 ( 3,538 ) ( 3,538 )	$ 955,410 6,955 3,803 3,828 243,946 7 38,813 276,210 548,488 ( 6,202 ) ( 2,401 )	Note 1 Note 2 Note 3 Note 4 Note 5

Note 1: The Company mainly reinvests indirectly through PIB in Pan-International Electronics (Malaysia) Sdn. 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's sub-subsidiary GHH was de-registered in November 2022.

Note 3: 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 Mainland China.

Note 4: The Company mainly reinvests in Pan-International Precision Electronic Co., Ltd. indirectly through TUI. Please refer to Table 8 for details on the disclosure of information about the investment in Mainland China.

Note 5: 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 Mainland China. 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.

Table 7 page 1

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Pan-International Industrial Corp. and Subsidiaries Mainland China investment information - Basic information January 1 to December 31, 2022

Table 8

Table 8
Name of the investee in mainland China	Main Businesses and Products	Paid-in Capital	Method of Investments (Note 2)	Cumulative outward remittance of investment amount from Taiwan at the beginningof theperiod	Investmen current	t Flows of period	Cumulative outward remittance of the investment amount from Taiwan in the period end	Net income (loss) of the Investee for currentperiod	% Ownership of Direct or Indirect Investment	Investment gains and losses recognized in the current period (Note 3)	Book value of the investment at the end of theperiod	Unit: NTD thousand (unless otherwise noted) Investment gains repatriated as of the end of the period Remarks
					Outward	Inward
Pan-International Precision Electronic Co., Ltd. Fuyu Property (Shanghai) Co., Ltd. New Ocean Precision Component (Jiangxi) Co., Ltd. Honghuasheng Precision Electronics (Yantai) Co., Ltd.	Manufacturing and sale of wires, cables, connecting wires, connecting wire connectors, and wire plugs. Engaging in the e-commerce business of industrial design, other specialized design services, car rental, retail of other commodities, sale of computer and peripheral equipment and software, retail of communication equipment, retail of audio- visual equipment, retail of spare parts and supplies for locomotives, and e-commerce of retail goods and equipment above. Manufacturing and operation of various types of plugs and sockets and telecommunications. 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	$ 503,644 5,164,082 294,816 2,634,918	2 2 2 2	$ 383,875 836,848 - 2,717,835	$ - - - -	$ - - - -	$ 383,875 836,848 - 2,717,835	$ 276,210 90,773 38,813 608,931	100 16.87 100 100	$ 276,210 - 38,813 608,931	$ 1,358,543 822,248 687,935 3,803,260	$ - - - -	Note 6 Note 8 Note 4

Table 8 page 1

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Companyname Pan-International Industrial Corp.	The cumulative amount of outward remittance of investment from Taiwan to mainland China at the end of the period (notes 5 and 6)	Investment amount approved by the Investment Commission, MOEA	In compliance with the investment limit stipulated by the Investment Commission, MOEA for investment in mainland China. (note 7).
	$ 4,354,402	$ 6,216,914	$ -

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.

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: The following are the investment withdrawal cases approved by the Investment Commission, MOEA as of December 31, 2022:

Date	Approval letter No.	Investor Company Dongguan Junwang Technology Co., Ltd. Saibo Digital Technology (Guangzhou) Co., Ltd. Yunnan Saibo Digital Technology Co., Ltd. Chongqing Saibotel Digital Square Co., Ltd. Nanchong Saibo Digital Square Co., Ltd. UER Battery Technology (Shenzhen) Co., Ltd. Ganchuang International Trade (Shenzhen) Co., Ltd.	Original investment amount remitted from Taiwan
September 5, 2003 December 9, 2010 May 30, 2011 May 30, 2011 May 30, 2011 March 22, 2017 May 9, 2017	0920028972 09900496780 10000205680 10000205690 10000205700 10600038030 10630024870		USD 91 thousand 476 thousand 190 thousand 454 thousand 58 thousand 1,100 thousand 8,650 thousand
			USD 11,019 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: In November 2011, the Company was granted a document, IC(II) No. 10000518690 by the Investment Commission, MOEA, that approved the rescission of the unexecuted investment amount of US$500 thousand for Pan-International Precision Electronic Co., Ltd. On October 30, 2014, the Company was granted a document, IC(II) No. 10300233110 by the Investment Commission, MOEA that approved the transferring of Cyberport Digital Tech (Qingdao) Co., Ltd, and 42 other companies to Le Zhiwan Ranch Holding Investment Ltd. (Samoa);

In March 2017, the Company was granted a document, IC(II) No. 10600038030 by the Investment Commission, MOEA that approved the rescission of unexecuted investment amount of US$5.2 million for UER Battery Technology (Shenzhen) Co., Ltd..

• Note 7: The Company received a letter from the Industrial Development Bureau, MOEA referenced Jing-Shou-Gong-Zi No. 10820432920 in December 2019 certifying the compliance with the operation scope of operation headquarters, and no investment limit is required from December 4, 2019 to December 31, 2022.

• 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. The reinvestment business Fuyu Property (Shanghai) Co., Ltd. was indirectly disposed of. As of December 31, 2022, the Company indirectly held 16.87% of Class B shares of its reinvestment business Fuyu Property (Shanghai) Co., Ltd.

Table 8 page 2

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Pan-International Industrial Corp. and Subsidiaries

Information on major shareholders

December 31, 2022

Table 9

Table 9
Name of major shareholders	Sh	are
	Number of shares held	Shares Ratio
Hon Hai Precision Industry Co., Ltd.	107,776,254	20.79%

• 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 stake of more than 5% of the Company’s common and special shares that have completed dematerialized registration and delivery (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 shareholders’ insider declaration of the ownership percentage over 10% according to the Securities and Exchange Act, including the shares on hand and those being put in a trust but with the decision power over the usage of the trust assets, please refer to the insider declaration information on MOPS.

• 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: Total number of shares that have completed scriptless registration (including treasury shares) that have completed dematerialized registration and delivery is 518,346,282 shares = 518,346,282 (common shares) + 0 (preferred shares).

Table 9 page 1

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