PI — Interim / Quarterly Report 2024

Nov 13, 2024

Pan-International Industrial Corp. and Subsidiaries

CONSOLIDATED FINANCIAL STATEMENTS AND REVIEW REPORT OF INDEPENDENT ACCOUNTANTS

First Quarter in 2024 and 2023 (Stock code 2328)

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

Telephone: (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

CONSOLIDATED FINANCIAL STATEMENTS AND REVIEW REPORT OF

INDEPENDENT ACCOUNTANTS FOR THE 1[st] QUARTER of 2024 AND 2023

Table of Contents

	Item	Page No.
I.	Cover	1
II.	Table of Contents	2 ~ 3
III.	Independent Auditors’ Review Report	4 ~ 6
IV.	Consolidated Balance Sheets	7 ~ 8
V.	Consolidated Statements of Comprehensive Income	9
VI.	Consolidated Statements of Change in Equity	10
VII.	Consolidated Statements of Cash Flows	11
VIII.	Notes to consolidated financial reports	12 ~ 58
	(I) Organization and operations	12
	(II) The Authorization of Financial Reports	12
	(III) Application of Newly Released and Revised Standards and
	Interpretations	12 ~ 13
	(IV) Summary of Significant Accounting Policies	13 ~ 27
	(V) Major Sources of Uncertainty in Significant Accounting Judgments,
	Estimates, and Assumptions	27 ~ 28
	(VI) Notes to Important Account Items	28 ~ 43
	(VII) Related Party Transactions	43 ~ 45

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Item (VIII) Pledged Assets (IX) Significant Contingent Liabilities and Unrecognized Commitments (X) Major Disaster Losses (XI) Significant Subsequent Events (XII) Others (XIII) Additional Disclosures (XIV) Operating Departments Information	Page No.
	46 46 46 46 47 ~ 56 56 ~ 57 57 ~ 58

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Independent Auditors’ Review Report (2024) Cai-Shen-Bao-Zi No. 24000521

To Pan-International Industrial Corp.

Foreword

We have reviewed the consolidated balance sheet of March 31, 2024 and 2023, the consolidated comprehensive income sheet, consolidated statement of changes in equity, consolidated statement of cash flows for the three months then ended, and the notes to the consolidated financial statements (including the summary of material accounting policies) of Pan-International Industrial Corp. and its subsidiaries. It is the responsibility of the management to prepare properly expressed consolidated financial reports in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IAS 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission, and our responsibility is to conclude the consolidated financial reports based on the review results.

Scope

Except for retaining the statement in the basis paragraph of the qualified opinion, we conducted the review in accordance with the "Review of Financial Statements" of the Auditing Standard No. 2410. The procedures to be carried out in reviewing the consolidated financial reports include inquiry (mainly with the person in charge of financial and accounting affairs), analytical procedures, and other review procedures. A review is substantially less in scope than an audit and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

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Basis for Qualified Conclusion

As stated in notes 4(3) and 6(7) to the consolidated financial reports, the financial reports of the same period of some non-significant subsidiaries are included in the consolidated financial reports mentioned above and investments by equity method have not been verified by us. The total assets as of March 31, 2024 and 2023 were NT$1,256,585 thousand and 1,209,960 thousand, respectively, which accounted for 5% and 5% of the total consolidated assets (including investments using the equity method), respectively. The total liabilities were NT$275,338 thousand and NT$336,157 thousand, accounting for 3% and 4% of the total consolidated liabilities, respectively. The comprehensive income for the three months ended March 31, 2024 and 2023 were a loss of NT$8,001 thousand and a gain of NT$6,274 thousand, which accounted for (-2%) and 1% of the consolidated comprehensive income, respectively.

Conclusion

According to our review results and the review report by other independent auditors, (please refer to the “Other matters” paragraph), except for the financial reports of the nonsignificant subsidiaries and investments by equity method mentioned in the basis paragraph of the qualified opinion, if audited by us, may lead to adjustments to the consolidated financial reports. It is not found that the consolidated financial reports above have not been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the “Interim Financial Reporting” of IAS 34 endorsed and issued into effect by the Financial Supervisory Commission which may lead to the inability to properly express the consolidated financial status of Pan-International

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Industrial Corp. and its subsidiaries as of March 31, 2024 and 2023, and the consolidated financial position and the consolidated financial performance and consolidated cash flow for the period then ended.

Other item - Review by Other Independent Auditors

For some of the subsidiaries included in the consolidated financial reports of the PanInternational Group, their financial reports are not reviewed by us but by other independent auditors. We have implemented a necessary review of the adjustments to the conversion of these subsidiaries' financial reports into consistent accounting policies. Therefore, in our review report pertaining to the consolidated financial reports above, the amounts in the financial reports of these subsidiaries before adjustments are based on the review reports of other independent auditors. Their total assets as of March 31, 2024 and 2023 were NT$6,073,777 thousand and NT$6,088,754 thousand, respectively, accounting for 25% and 25% of the total consolidated assets. The operating revenue for the three months ended March 31, 2024 and 2023 was NT$1,593,207 thousand and NT$2,302,508 thousand, accounting for 34% and 38% of the consolidated operating revenue.

PwC Taiwan

Yung-Chien Hsu

Independent Auditors

Jen-Chieh Wu

Former Financial Supervisory Commission, Executive Yuan

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Approval Letter No.: (84) Tai-Tsai-Cheng (6) No. 13377 Financial Supervisory Commission Approval No.: Jin-Guan-Cheng-Shen-Zi No. 1120348565

May 14, 2024

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Pan-International Industrial Corp. and its Subsidiaries Consolidated Balance Sheet March 31, 2024, and December 31, 2023 and March 31, 2023

Assets	Note	March31,202 4 A m o u n t % $ 6,588,335 28 11,055 - 725,047 3 91,667 - 3,531,274 15 2,174,515 9 69,769 - 3,674,704 15 220,320 1 17,086,686 71 1,832,916 8 290,000 1 654,382 3 3,383,411 14 447,103 2 99,337 1 56,585 - 55,866 - 72,040 -	Decemb er31,	2023 % 26 - 4 1 14 12 - 15 1 73 8 1 3 12 1 - - - 2	Unit: NTD thousand March31,2023 A m o u n t % $ 7,507,168 31 10,339 - 678 - 17,440 - 3,060,907 12 3,076,545 12 642,213 3 3,852,136 16 150,505 1 18,317,931 75 2,004,824 8 4,874 - 716,202 3 2,697,748 11 361,589 2 99,699 - 37,104 - 65,724 - 156,705 1
		A m o u n t $ 6,588,335 11,055 725,047 91,667 3,531,274 2,174,515 69,769 3,674,704 220,320 17,086,686 1,832,916 290,000 654,382 3,383,411 447,103 99,337 56,585 55,866 72,040	A m o u n t $ 6,440,208 10,536 939,911 106,539 3,372,367 2,845,211 81,381 3,721,666 191,882 17,709,701 1,866,099 294,760 664,077 2,817,342 281,109 99,923 53,672 60,163 550,363		A m o u n t $ 7,507,168 10,339 678 17,440 3,060,907 3,076,545 642,213 3,852,136 150,505 18,317,931 2,004,824 4,874 716,202 2,697,748 361,589 99,699 37,104 65,724 156,705
Current Assets 1100 Cash and cash equivalents 1110 Financial assets at FVTPL - Current 1136 Financial assets measured at after-amortization cost - Current 1150 Net notes receivable 1170 Net accounts receivable 1180 Accounts receivable - Related parties net 1200 Other receivables 130X Inventory 1470 Other current assets 11XX Total Current Assets Non-Current Assets 1517 Financial assets measured at fair value through other comprehensive income - Non- current 1535 Financial assets measured at after-amortization cost - Non- current 1550 Investment by equity method 1600 Property, plant, and equipment 1755 Right-of-use assets 1760 Net investment property 1780 Intangible asset 1840 Deferred tax assets 1900 Other non-current assets	6 (1) 6 (2) 6 (3) and 8 6 (4) 6 (4) 7 6 (5) 6 (6) 6 (3) and 8 6 (7) and 8 6 (8) and 8 6 (9) and 8 6 (10) and 8 6 (11)

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Pan-International Industrial Corp. and its Subsidiaries Consolidated Balance Sheet March 31, 2024, and December 31, 2023 and March 31, 2023

									Unit: NTD	thousand
15XX	Total non-current assets		6,891,640	29		6,687,508	27		6,144,469	25
1XXX	Total assets	$	23,978,326	100	$	24,397,209	100	$	24,462,400	100

(continued)

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Pan-International Industrial Corp. and its Subsidiaries Consolidated Balance Sheet March 31, 2024, and December 31, 2023 and March 31, 2023

Unit: NTD thousand

				March31,202	March31,202	March31,202	March31,202	4	Decemb er31,2	Decemb er31,2	023	023	March31,202	March31,202	March31,202	3
	LIABILITIES AND EQUITY		Note	A m o u n t			%		A m o u n t		%		A m o u n t		%
	Current liability
2100	Short-term borrowings	6	(12)		$	765,519		3	$	565,372		2	$	1,515,768		6
2130	Contractual liabilities - Current	6	(20) and 7			195,348		1		181,376		1		210,541		1
2150	Notes payable					802,825		3		1,041,396		4		294,269		1
2170	Accounts payable					3,199,215	13			3,739,360	15			3,655,168	15
2180	Accounts payable - Related	7
	parties					1,148,694		5		1,599,870		7		1,335,447		6
2200	Other payables	6	(13)			1,806,861		8		1,218,638		5		1,305,371		5
2230	Current tax liabilities					181,037		1		176,348		1		230,802		1
2280	Lease liabilities - Current	7				72,195		-		38,957		-		83,769		-
2399	Other current liabilities - Other					30,165		-		26,295		-		21,527		-
21XX	Total current liabilities					8,201,859	34			8,587,612	35			8,652,662	35
	Non-current liabilities
2570	Deferred tax liabilities					374,545		2		370,515		2		364,252		2
2580	Lease liabilities - Non-current	7				193,648		1		60,745		-		84,514		-
2600	Other non-current liabilities					45,065		-		30,128		-		17,672		-
25XX	Total non-current
	liabilities					613,258		3		461,388		2		466,438		2
2XXX	Total liabilities					8,815,117	37			9,049,000	37			9,119,100	37
	Equity attributable to owners of
	the parent company
	Share capital	6	(15)
3110	Common share capital					5,183,462	22			5,183,462	21			5,183,462	21
	Capital surplus	6	(16)
3200	Capital surplus					1,503,606		6		1,503,606		6		1,503,606		7
	Retained earnings	6	(17)
3310	Legal reserve					1,401,022		6		1,401,022		6		1,269,138		5
3320	Special reserve					1,385,207		6		1,385,207		6		1,072,435		4
3350	Undistributed earnings					4,897,808	20			5,343,835	22			5,552,366	23
	Other equities	6	(18)
3400	Other equities			(		1,201,926 ) (		5) (		1,410,735) (		6) (		1,134,122 ) (		5)
31XX	Total equity attributable to
	owners of the parent
	company					13,169,179	55			13,406,397	55			13,446,885	55
36XX	Non-controlling interests	6	(19)			1,994,030		8		1,941,812		8		1,896,415		8

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

Chairman: Lee, Kuang-Yao Managerial Officers: Tsai, Ming-Feng

Accounting supervisor: Tai, Chih-Hao

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Pan-International Industrial Corp. and its Subsidiaries Consolidated Balance Sheet March 31, 2024, and December 31, 2023 and March 31, 2023

3XXX Total equity Significant Contingent Liabilities and Unrecognized Commitments 9 3X2X Total liabilities and equity	15,163,209 $ 23,978,326	63 100	15,348,209 $ 24,397,209	63 100	Unit: NTD thousand 15,343,300 63 $ 24,462,400 100

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

Chairman: Lee, Kuang-Yao

Managerial Officers: Tsai, Ming-Feng Accounting supervisor: Tai, Chih-Hao

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Pan-International Industrial Corp. and its Subsidiaries Consolidated Statements of Comprehensive Income January 1 to March 31, 2024 and 2023

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

Item

January 1 to March 31, 2024 January 1 to March 31, 2023 Note A m o u n t % A m o u n t % 6 (20) and 7 $ 4,657,870 100 $ 6,080,658 100 6 (5) (23) And 7 ( 4,097,802) ( 88)( 5,262,849 )( 87) 560,068 12 817,809 13 6 (23) ( 78,240) ( 2) ( 79,731 ) ( 1) ( 192,448) ( 4) ( 181,856 ) ( 3) ( 122,216) ( 2) ( 105,203 ) ( 2) 12 (2) 530 - ( 5,128 ) - ( 392,374) ( 8)( 371,918 )( 6) 167,694 4 445,891 7 40,072 1 37,819 1 6 (21) 36,476 1 12,263 - 6 (22) 36,393 1 ( 9,412 ) - 6 (24) ( 14,441) ( 1) ( 27,950 ) ( 1) 6 (7) ( 9,711) - ( 18,736 ) - 88,789 2 ( 6,016 ) - 256,483 6 439,875 7 6 (25) ( 57,902) ( 1)( 100,091)( 2) $ 198,581 5 $ 339,784 5 6 (18) $ 46,801 1 $ 263,821 4 46,801 1 263,821 4 6 (18) 243,468 5 ( 29,672 ) - 243,468 5 ( 29,672 ) - $ 290,269 6 $ 234,149 4 $ 488,850 11 $ 573,933 9 $ 169,698 5 $ 296,734 4

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 profit of the current period Items that will not be reclassified subsequently to profit or loss 8316 Unrealized evaluation profit and loss of equity instrument investment measured at fair value through other comprehensive income 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

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

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

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Pan-International Industrial Corp. and its Subsidiaries Consolidated Statements of Comprehensive Income January 1 to March 31, 2024 and 2023

8620 Non-controlling interests Total comprehensive income attributable to: 8710 Owners of the parent company 8720 Non-controlling interests Earnings per share (EPS) 6 (26) 9750 Basic earnings per share 9850 Diluted earnings per share	28,883 $ 198,581 $ 436,632 52,218 $ 488,850 $	Unit: NTD thousand (except in NTD for earnings per share) - 43,050 1 5 $ 339,784 5 10 $ 547,820 9 1 26,113 - 11 $ 573,933 9 0.33 $ 0.57 0.33 $ 0.57
	$

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

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

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Pan-International Industrial Corp. and its Subsidiaries Consolidated Statement of Changes in Shareholders Equity January 1 to March 31, 2024 and 2023

Unit: NTD thousand

2023 Balance on January 1 Net profit of the current period Other comprehensive income recognized for the period Total comprehensive income in the current period Balance on March 31 2024 Balance on January 1 Net profit of the current period Other comprehensive income recognized for the period Total comprehensive income in the current period Earnings distribution and provisions for 2023: Cash dividends Equity instruments measured at fair value through other comprehensive income Balance on March 31	Note				Equity	attributable to own	ers of theparent co	mpany			Total	Non-controlling interests	Total Equity
		Common share capital		Capital surplus	Capital reserve - difference between the price and face value from the acquisition or disposal of equity with subsidiaries.		Retained earnings	Undistributed earnings	Other equities Currency translation difference Unrealized Gain (Loss) on Financial Assets at Fair Value through Other Comprehensive Income
			Capital reserve - Issuancepremium	Capital reserve - Treasury share transaction		Legal reserve	Special reserve		Currency translation difference
	6 (18) 6 (18) 6 (17) 6 (6)	$ 5,183,462 - - - $ 5,183,462 $ 5,183,462 - - - - - $ 5,183,462	$ 1,402,318 - - - $ 1,402,318 $ 1,402,318 - - - - - $ 1,402,318	$ 98,543 - - - $ 98,543 $ 98,543 - - - - - $ 98,543	$ 2,745 - - - $ 2,745 $ 2,745 - - - - - $ 2,745	$ 1,269,138 - - - $ 1,269,138 $ 1,401,022 - - - - - $ 1,401,022	$ 1,072,435 - - - $ 1,072,435 $ 1,385,207 - - - - - $ 1,385,207	$ 5,255,632 296,734 - 296,734 $ 5,552,366 $ 5,343,835 169,698 - 169,698 ( 673,850 ) 58,125 $ 4,897,808	($ 965,367 ) - ( 12,735 ) ( 12,735 ) ($ 978,102 ) ($ 1,142,062 ) - 220,133 220,133 - - ($ 921,929 )	($ 419,841 ) - 263,821 263,821 ($ 156,020 ) ($ 268,673 ) - 46,801 46,801 - ( 58,125 ) ($ 279,997 )	$ 12,899,065 296,734 251,086 547,820 $ 13,446,885 $ 13,406,397 169,698 266,934 436,632 ( 673,850 ) - $ 13,169,179	$ 1,870,302 43,050 ( 16,937 ) 26,113 $ 1,896,415 $ 1,941,812 28,883 23,335 52,218 - - $ 1,994,030	$ 14,769,367 339,784 234,149 573,933 $ 15,343,300 $ 15,348,209 198,581 290,269 488,850 ( 673,850 ) - $ 15,163,209

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

Chairman: Lee, Kuang-Yao

Managerial Officers: Tsai, Ming-Feng

Accounting supervisor: Tai, Chih-Hao

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Pan-International Industrial Corp. and its Subsidiaries Consolidated Statement of Cash Flows January 1 to March 31, 2024 and 2023

Unit: NTD thousand

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 Share of profits and losses of affiliated companies recognized by the equity method Net gain on disposal of property, plant and equipment Loss on disposal of investments Unrealized exchange loss Changes in assets/liabilities related to operating activities Net change in assets related to operating activities Financial assets and liabilities measured at fair value through the income Net notes receivable Net accounts receivable Accounts receivable - Related parties net Other receivables Inventory Other current assets Net change in liabilities related to operating activities Contractual liabilities Notes payable Accounts payable Accounts payable - Related parties Other payables Other current liabilities Other non-current liabilities Cash (outflow) inflow from operations Income tax paid Net cash inflow (outflow) from operating activities Cash flows from investing activities Proceeds from disposal of financial assets measured at fair value through other comprehensive income Decrease in financial assets at amortized cost Purchase property, plant and equipment assets Proceeds from disposal of property, plant and equipment Acquisition of intangible assets Decrease (increase) in refundable deposits Increase in other non-current assets Interest received Dividend received Net cash inflow from investment activities Cash flows from financing activities Increase in short-term borrowings Decrease in short-term borrowings Lease principal repayment Interest paid

Note January 1 to March 3 1 , 2 0 2 4 January 1 to March 3 1 , 2 0 2 3 $ 256,483 $ 439,875 6 (23) 155,138 164,110 12 (2) ( 530 ) 5,128 6 (22) ( 61 ) ( 10,322 ) 6 (24) 14,441 27,950 ( 40,072 ) ( 37,819 ) 6 (21) ( 5 ) ( 2 ) 6 (7) 9,711 18,736 6 (22) ( 28 ) ( 124 ) 6 (22) - 1,079 - ( 12,560 ) ( 306 ) 10,135 16,739 17,862 ( 117,183 ) 483,771 715,801 1,104,720 14,554 93,278 150,958 32,776 ( 25,129 ) ( 24,754 ) 13,972 ( 63,067 ) ( 255,843 ) ( 63,831 ) ( 592,931 ) ( 192,269 ) ( 467,273 ) ( 173,379 ) ( 12,159 ) ( 313,107 ) 3,107 ( 1,804 ) 14,418 1,208 ( 146,198 ) 1,507,590 ( 46,095 ) ( 136,128 ) ( 192,293 ) 1,371,462 6 (6) 136,307 - 235,268 272,684 6 (27) ( 287,660 ) ( 178,366 ) 112 140 6 (11) ( 1,859 ) - 466 ( 11,560 ) ( 10,252 ) ( 35,803 ) 40,072 37,819 5 2 112,459 84,916 6 (28) 207,786 - 6 (28) ( 27,938 ) ( 567,596 ) 6 (28) ( 1,501 ) ( 9,372 ) ( 14,441 ) ( 27,950 )

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

Chairman: Lee, Kuang-Yao

Managerial Officers: Tsai, Ming-Feng Accounting supervisor: Tai, Chih-Hao

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Pan-International Industrial Corp. and its Subsidiaries Consolidated Statement of Cash Flows January 1 to March 31, 2024 and 2023

Unit: NTD thousand

January 1 to March January 1 to March Note 3 1 , 2 0 2 4 3 1 , 2 0 2 3 Net cash inflow (outflow) from financing activities 163,906 ( 604,918 ) Impact of changes in the exchange rate on cash and cash equivalents 64,055 ( 57,863 ) Increase in cash and cash equivalents in the current period 148,127 793,597 Cash and cash equivalents at the beginning of the period 6,440,208 6,713,571 Cash and cash equivalents at the end of the period $ 6,588,335 $ 7,507,168

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

Chairman: Lee, Kuang-Yao

Managerial Officers: Tsai, Ming-Feng Accounting supervisor: Tai, Chih-Hao

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Pan-International Industrial Corp. and Subsidiaries Notes to consolidated financial reports First Quarter in 2024 and 2023

Unit: NTD thousand (unless otherwise noted)

I. Organization and operations

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

II. The Authorization of Financial Reports

This Consolidated Financial Statement has been passed by the Board for announcement on May 14, 2024.

III. Application of Newly Released and Revised Standards and Interpretations

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

The following table sets forth the standards and interpretations for the new issues, amendments, and revisions of IFRS recognized and promulgated by the FSC for application in 2024:

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

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

None.

(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:

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New issued/amended/revised standards and interpretations

Effective date of the release of the International Accounting Standards Board

Amendments to IFRS 10 and IAS 28 "Asset sales or investments between investors and their associated enterprises or joint ventures" IFRS 17 “Insurance contracts” Amendment to IFRS 17 “Insurance contracts” Amendment to IFRS 17 “Initial Application of IFRS 17 and IFRS 9 - Information Comparison” IFRS 18 "Presentation and Disclosure in Financial Statements" Amendments to IAS No. 21 "Lack of Exchangeability"

To be decided by IASB January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2027 January 1, 2025

In addition to the following, the Group has assessed that the standards and interpretations above have no significant impact on the financial position and financial performance of the Group. IFRS 18 "Presentation and Disclosure in Financial Statements"

IFRS No. 18 "Financial Statement Presentation and Disclosure" replaces IAS No. 1 and updates the structure of the comprehensive income statement, adds the disclosure of management performance measurement, and strengthens the application in the summary of the main financial statements and notes and segmentation.

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

This consolidated financial report is prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Accounting Standard No. 34 "Interim financial reporting" endorsed and issued into effect by the FSC.

(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

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• (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.

• (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.

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

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

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

• Subsidiaries listed in the consolidated financial reports:

Investor	Name of subsidiary	Main Business	% of Ownership	% of Ownership	% of Ownership	Expla
			March 31,2024	December 31,2023	March 31,2023	natio n
Pan-International Industrial Corp.	PAN- INTERNATIONA L ELECTRONICS INC.(PIU)	Engaged in the import and sales of various electronic products.	100	100	100	(4)
Pan-International Industrial Corp.	Pan Global Holding Co., Ltd. (PGH)	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	100	100
Pan-International Industrial Corp.	Yann-Yang Investments Corp.	Engaged in the domestic investment business.	100	100	100
Pan-International	PANINTERNATI	Production and	45	-	-	(2)

~19~

Industrial Corp.	ONAL	sales of connection
	ELECTRONICS	cables.
	(THAILAND)
	CO., LIMITED.

Investor	Name of subsidiary	Main Business	% of Ownership	% of Ownership	% of Ownership	Expla
			March 31,2024	December 31,2023	March 31,2023	natio n
Yann-Yang Investments Corp.	Tekcon Electronics Corporation	Engaged in manufacturing and distribution of various electronic products.	83.58	83.58	83.58
Pan Global Holding Co., Ltd.	P.I.E Industrial Berhad	The holding company of the overseas reinvestment business.	51.42	51.42	51.42
Pan Global Holding Co., Ltd.	BEYOND ACHIEVE ENTERPRISES LTD.	The holding company of the overseas reinvestment business.	100	100	100
Pan Global Holding Co., Ltd.	Team Union International Ltd.	The holding company of the overseas reinvestment business.	100	100	100	(4)
Pan Global Holding Co., Ltd.	EAST HONEST HOLDINGS LIMITED	The holding company of the overseas reinvestment business.	100	100	100
Tekcon Electronics Corporation	TEKCON BAHAMAS LTD	The holding company of the overseas reinvestment business.	100	100	100	(4)
TEKCON BAHAMAS LTD	Tekcon Huizhou Electronics Co., Ltd.	OEM manufacturing of connectors and connection cables.	100	100	100	(4)
TEKCON BAHAMAS LTD	CARBO ENTERPRISES LIMITED	The holding company of the overseas reinvestment business.	-	-	100	(1) (4)
P.I.E Industrial Berhad	PANINTERNATI ONAL WIRE & CABLE (MALASIA) SDN. BHD.	Production and sales of electric cables.	100	100	100
P.I.E Industrial Berhad	PANINTERNATI ONAL ELECTRONICS (MALASIA) SDN.	Production and sales of connection cables and electronic products.	100	100	100

~20~

	BHD.
P.I.E Industrial	PANINTERNATI	Production and	55	100	100	(2)
Berhad	ONAL	sales of connection
	ELECTRONICS	cables.
	(THAILAND)
	CO., LIMITED.

Investor	Name of subsidiary	Main Business	% of Ownership	% of Ownership	% of Ownership	Expla
			March 31,2024	December 31,2023	March 31,2023	natio n
PAN INTERNATIONA L ELECTRONICS (MALASIA) SDN.BHD.	PAN INTERNATIONA L CORPORATION (S) PTE. LIMITED.	Sales of connection wires and connectors.	30	30	30
PAN INTERNATIONA L ELECTRONICS (MALASIA) SDN.BHD.	PIE ENTERPRISE (M) SDN. BHD.	Sales of connection cables and electronic products.	100	100	100
PAN INTERNATIONA L WIRE & CABLE (MALASIA) SDN. BHD.	PIW ENTERPRISE (MALASIA) SDN. BHD.	Sales of electric cables.	100	100	100
BEYOND ACHIEVE ENTERPRISES LTD.	New Ocean Precision Component (Jiangxi) Co., Ltd.	Production and operation of various plugs, sockets, telecommunication systems, etc..	100	100	100
Team Union International Ltd.	Pan-International Precision Electronic Co., Ltd.	Production and sales of electric cables.	100	100	100
Team Union International Ltd.	Chaohu Ruichang Electric System Co., Ltd.	Manufacture and sales of automotive wiring harness products.	58	-	-	(3)
EAST HONEST HOLDINGS LIMITED	Honghuasheng Precision Electronics (Yantai) Co., Ltd.	PCB production and assembly, etc..	100	100	100
Pan-International Precision Electronic Co., Ltd.	Pan-International Sunrise Trading Corp.	Production and sales of electrical cables, computer accessories, wireless Bluetooth, Turnkey, etc.	100	100	100	(4)
Pan-International Precision Electronic Co., Ltd.	CJ Electric Systems Co., Ltd.	Manufacture and sales of automotive wiring harness products.	100	100	100
Pan-International	YiBing Pan-	Auto parts and	100	100	100

~21~

Precision	International	accessories, smart
Electronic Co.,	Vehicle Wire Co.,	vehicle equipment
Ltd.	Ltd.	manufacturing,
		etc..
CJ Electric	Chaohu Ruichang	Manufacture and	42	100	100	(3)
Systems Co., Ltd.	Electric System	sales of automotive
	Co., Ltd.	wiring harness
		products.

Investor	Name of subsidiary	Main Business	% of Ownership	% of Ownership	% of Ownership	Expla
			March 31,2024	December 31,2023	March 31,2023	natio n
CJ Electric Systems Co., Ltd.	Ordos City Ruichang Electric System Co., Ltd.	Manufacture and sales of automotive wiring harness products.	100	100	100
CJ Electric Systems Co., Ltd.	Wuhu Herzhong Automotive Electronics Co., Ltd.	Manufacture and sales of automotive wiring harness products.	100	100	100
CJ Electric Systems Co., Ltd.	Anqing Ruiyu Automotive Electrical System Co., Ltd.	Manufacture and sales of automotive wiring harness products.	48.78	48.78	48.78
Ordos City Ruichang Electric System Co., Ltd.	Anqing Ruiyu Automotive Electrical System Co., Ltd.	Manufacture and sales of automotive wiring harness products.	51.22	51.22	51.22

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

• (2) The Company increased capital in the sub-subsidiary Pan-International Electronics (THAILAND) CO., LIMITED. in the first quarter of 2024, with the result that the shareholding of the subsidiary PIE INDUSTRIAL BERHAD in this company was reduced to 55%. The total shareholding of the Company and P.I.E. INDUSTRIAL BERHAD in this company is 100%.

• (3) The Company's sub-subsidiary TEAM UNION INTERNATIONAL LTD. increased capital in the sub-subsidiary Chaohu Ruichang Electric System Co., Ltd. in the first quarter of 2024, with the result that the shareholding of the sub-subsidiary CJ Electric Systems Co., Ltd. in this company was reduced to 42%. The total shareholding of TEAM UNION INTERNATIONAL LTD and CJ Electric Systems Co., Ltd. is 100%.

• (4) The financial statements as of March 31, 2024 and 2023 have not been reviewed by CPAs.

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

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

• Major limitation: No such situation.

• Subsidiaries with significant non-controlling interests in the group

The total amount of non-controlling interests of the Group as of March 31, 2024, December 31, 2023, and March 31, 2023 were NT$1,994,030, NT$1,941,812, and NT$1,896,415, respectively. The following is the information about the significant non-controlling interests of the Group and its subsidiaries:

~22~

Name of subsidiary	Main business location			Non-controllinginterests	Non-controllinginterests
		March	31,2024	December 31,2023		March	31,2023
		Amount	Shareholding percentage	Amount	Shareholding percentage	Amount	Shareholding percentage
P.I.E Industrial Berhad	Malaysia	$ 1,964,492	49	$ 1,910,332	49	$ 1,860,364	49

Summary financial information of subsidiaries:

Balance sheet

Balance sheet
	March 31,2023	December31,2023	March 31,2023
Current Assets	$ 4,409,517	$ 4,498,290	$ 4,496,175
Non-Current Assets	1,525,916	1,428,253	1,348,798
Current liability	( 1,635,835)	( 1,922,596)	( 1,941,870)
Non-current liabilities	( 75,933)	( 71,604)	( 73,618)
Net total assets	$ 4,223,665	$ 3,932,343	$ 3,829,485

Comprehensive Income Statement

Comprehensive Income Statement
	January1 to March 31,2024	January1 to March 31,2023
Income	$ 1,593,207	$ 2,302,508
Net income before tax	84,861	127,147
Income tax expense	( 20,802)	( 34,280)
Net profit of the current period	64,059	92,867
Other comprehensive income (net after tax)	45,045	( 26,499)
Total comprehensive income in the current period	$ 109,104	$ 66,368
Total comprehensive profit and loss attributable to non-controlling interests	$ 52,882	$ 32,242

Cash Flow Statement

Cash Flow Statement
	January1 to March 31,2024	January1 to March 31,2023
Net cash inflow from operating activities	$ 289,052	$ 403,745
Net cash outflow from investment activities	( 118,434)	( 72,355)
Net cash inflow (outflow) from financing activities	170,038	( 235,363)
Effects of exchange rate changes on the balance of cash and cash equivalents	19,257	( 1,127)
Decrease in cash and cash equivalents in the current period	359,913	94,900
Cash and cash equivalents at the beginning of the period	416,440	438,891
Cash and cash equivalents at the end of the period	$ 776,353	$ 533,791

(IV) Foreign exchange conversion

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

~23~

1. Foreign currency transactions and balances

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

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

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

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

2. Conversion of foreign operations

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

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

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

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

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

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

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

4. 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:

~24~

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

• (2) Held mainly for trading purposes.

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

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

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

(VI) Cash equivalents

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

(VII) Financial assets at FVTPL

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

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

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

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

(VIII) Financial assets at FVTOCI

1. Refers to an irrevocable choice at the time of initial recognition to report changes in the fair value of equity instrument investments that are not held for trading in other comprehensive income; or debt instrument investments that meet the following conditions at the same time: (1) The financial asset is held under the business model to collect contractual cash flow and for sale.

2. (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.

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

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

5. (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.

6. (2) Changes in the fair value of debt instruments are recognized in other comprehensive

~25~

income, and 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. Refers to those who meet the following conditions at the same time:

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

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

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

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

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

(X) Accounts and notes receivable

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

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

(XI) Impairment of financial assets

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

(XII) Derecognition of financial assets

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

(XIII) Lessor’s lease transaction - Operating lease

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

(XIV) Inventory

Inventories are measured by the lower of cost and net realizable value, and the cost is determined by the weighted average method. The cost of finished products and work-in-

~26~

progress 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 their voting rights. The group's investment in affiliated enterprises is treated with the equity method and recognized at cost when acquired.

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

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

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

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

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

(XVI) Property, plant, and equipment

1. Property, plant and equipment are recorded based on the acquisition cost, and the relevant

~27~

interest during the acquisition and construction period is capitalized.

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

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

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

Estimates." The service life of each asset is as follows:
Buildings	15	~ 51 years
Equipment		3 - 9 years
Others		1 ~ 6 years

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

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

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

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

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

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

(XVIII) Investment property

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

~28~

(XIX) Intangible asset

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

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

(XX) Impairment of non-financial assets

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

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

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

(XXI) Borrowings

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

(XXII) Note payable and accounts payable

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

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

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

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

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

(XXIV) Derecognition of financial liabilities

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

~29~

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) Provisions

Provisions (including warranty) are recognized when a present legal or constructive obligation is incurred as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation, and the amount of the obligation can be estimated reliably. The provisions are measured based on the best estimated present value of the expenditure required to settle the obligation on the balance sheet date. The discount rate is based on the pre-tax discount rate that reflects the current market assessment of the time value of money and the specific risks of the liability and recognized as interest expense. No provisions shall be recognized for future operating losses.

(XXVIII) Employee welfare

1. Short-term employee benefits

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

1. Pension

2. (1) Defined allocation plan

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

• (2) Defined benefit plan

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

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

~30~

• C. The interim pension cost is calculated based on the pension cost rate determined at the end of the previous fiscal year on the basis from the beginning until the end of the current period. If there are major market changes and major reductions, settlements, or other major one-off events after the ending date, adjustments shall be made and relevant information revealed in accordance with the aforementioned policies.

• 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.

(XXIX) 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 with respect to the applicable income tax laws and regulations, and, where applicable, assesses income tax liabilities based on the amount of tax expected to be paid to the tax authorities. Undistributed earnings are subject to income tax in accordance with the income tax law, and the income tax expense of undistributed earnings shall be recognized in accordance with the actual distribution of earnings in the year following the year in which the earnings are generated, after the earnings distribution proposal is passed by the shareholders’ meeting.

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 nor does it generate a corresponding taxable and deductible temporary difference, then it is not recognized. If there is a temporary difference arising from the investment in subsidiaries and affiliated enterprises, the Group can control the reversal time point of the temporary difference, and the temporary difference is likely to not be reversed in the foreseeable future, then it will not be recognized. Deferred income tax is subject to the tax rate (and tax law) that has been enacted or substantively enacted on the balance sheet date and is expected to apply when the relevant deferred income tax assets are realized or the deferred income tax liabilities are settled.

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

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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.

1. 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.

2. The interim income tax expense is calculated by applying the estimated annual average effective tax rate to the interim pre-tax, and relevant information is disclosed in accordance with the policies above.

3. When there is a tax rate change in the interim period, the Group will recognize the effect of the change in one go in the current period of the change. For those related to income tax and items other than profit and loss, the effect of the change will be recognized in other comprehensive income or changes in equity. For those related to income tax and items recognized as income, the effect of the change will be recognized in profit and loss.

(XXX) 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.

(XXXI) Revenue recognition

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

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

(XXXII) 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

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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.

(XXXIII) Operation departments

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

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

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

(I) Important judgment for accounting policy adoption

Recognition of gross or net income

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

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on the estimated product demand in a specific period in the future, so significant changes may occur. Please refer to Note 6 (5) for the carrying amount of the Group’s inventory as of March 31, 2024.

VI. Notes to Important Account Items

(I) Cash and cash equivalents

Cash and cash equivalents
	March 31,2024	December 31,2023	March 31,2023
Cash on hand and working capital	$ 702	$ 654	$ 674
Checking and demand deposit accounts	4,543,399	4,886,887	5,086,166
Time deposit	1,043,163	972,390	2,011,180
Bond repos	1,001,071	580,277	409,148
	$ 6,588,335	$ 6,440,208	$ 7,507,168

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

2. For information on the Group’s pledged bank deposits, classified as financial assets measured at amortized cost, as of March 31, 2024, December 31, 2023 and March 31, 2023, please refer to Note 6 (3) and Note 8.

(II) Financial assets at FVTPL

refer to Note 6 (3) and Note 8. Financial assets at FVTPL
Item	March 31,2024	December 31,2023	March 31,2023
Current items:
Financial assets mandatorily measured at fair value through income - open-end funds	$ 11,055	$ 10,536	$ 10,339

1. The financial products held by the Group from January 1 to March 31, 2024 and 2023 recognized a net gain of $61 and a net gain of $ 10,322, respectively.

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

(III) Financial assets measured at after-amortization cost

Item	March 31,2024	December 31,2023	March 31,2023
Current items:
Restricted bank deposits	$ 716,686	$ 936,314	$ 678
Pledged time deposits	8,361	3,597	-
Total	$ 725,047	$ 939,911	$ 678
Non-current items:
Ordinary corporate bonds	$ 290,000	$ 290,000	$ -
Pledged time deposits	-	4,760	4,874
Total	$ 290,000	$ 294,760	$ 4,874

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

(IV) Notes and accounts receivable

Notes and accounts receivable
	March 31,2024	December 31,2023	March 31,2023
Note receivable	$ 91,703	$ 106,582	$ 17,440
Less: Allowance for impairment loss	( 36)	( 43)	-

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Total	$ 91,667	$ 106,539	$ 17,440
Accounts receivable	$ 3,535,898	$ 3,377,206	$ 3,072,031
Less: Allowance for impairment loss	( 4,624)	( 4,839)	( 11,124)
Total	$ 3,531,274	$ 3,372,367	$ 3,060,907

1. The group does not hold any collateral.

2. The balance of accounts receivable and notes receivable as of March 31, 2024, December 31, 2023, and March 31, 2023 were generated from customer contracts, and the balance of notes receivable and accounts receivable of customer contracts on January 1, 2023 was NT$3,595,589.

3. 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 on March 31, 2024, December 31, 2023, and March 31, 2023 is the book value of each type of notes and accounts receivable.

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

5. (V) Inventory

Inventory
		March 31,2024
	Cost	Allowance for	Book value
		valuation losses
Raw materials	$ 1,478,595	($ 42,437)	$ 1,436,158
Work in process	770,456	( 9,929)	760,527
Finished products	1,581,954	( 103,935)	1,478,019
	$ 3,831,005	($ 156,301)	$ 3,674,704
		December 31,2023
	Cost	Allowance for	Book value
		valuation losses
Raw materials	$ 1,373,052	($ 38,942)	$ 1,334,110
Work in process	890,306	( 8,667)	881,639
Finished products	1,604,835	( 98,918)	1,505,917
	$ 3,868,193	($ 146,527)	$ 3,721,666
		March 31,2023
	Cost	Allowance for	Book value
		valuation losses
Raw materials	$ 1,213,756	($ 38,262)	$ 1,175,494
Work in process	1,117,582	( 9,298)	1,108,284
Finished products	1,681,447	( 113,089)	1,568,358
	$ 4,012,785	($ 160,649)	$ 3,852,136

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

	January1 to March 31,2024	January1 to March 31,2023
Cost of inventory sold	$ 4,108,723	$ 5,298,736
Inventory valuation loss (rebound profit)	7,356	( 12,820)
Income from sales of scrap materials	( 18,277)	( 23,067)
	$ 4,097,802	$ 5,262,849

From January 1 to March 31, 2023, the Group's net realizable value of inventories rose due to the elimination of some of the inventories whose net realizable value was lower than the cost.

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

Item	March 31,2024	December 31,2023	March 31,2023
Non-current items:
Equity instruments
Listed and OTC stocks	$ 909,632	$ 1,016,823	$ 1,085,309
Non-listed, OTC, or emerging stocks	923,284	849,276	919,515
Total	$ 1,832,916	$ 1,866,099	$ 2,004,824

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

2. From January 1 to March 31, 2024, due to working capital requirements, the Group sold shares of listed companies with a fair value of $136,307, and the accumulated disposal gain (accounted for in unappropriated earnings) was $58,125. From January 1 to March 31, 2023, no shares of the listed company were sold.

3. Please refer to note 6(18) other equity items for the items the Group recognized in other comprehensive income due to changes in fair value from January 1 to March 31, 2024 and 2023.

4. None of the Group's financial assets measured at fair value through other comprehensive income were pledged as of March 31, 2024, December 31, 2023, and March 31, 2023.

(VII) Investment by equity method

Investment by equity method
	March 31,2024	December 31,2023	March 31,2023
LONG TIME TECH. CO., LTD.	$ 653,264	$ 662,973	$ 714,994
Pan-International Corporation(S) Pte Ltd.	1,118	1,104	1,208
	$ 654,382	$ 664,077	$ 716,202

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

as follows:
	January1 to March 31,2024	January1 to March 31,2023
Current net loss of continuing business units	($ 9,711)	($ 18,736)
Total comprehensive income in the current period	($ 9,711)	($ 18,736)

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

2. The Group's investment by equity method on January 1 to March 31, 2024 and 2023, were evaluated based on financial reports compiled by the affiliated enterprise which were not reviewed by an independent auditor during the same period.

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

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(VIII) Property, plant, and equipment

	Land	Buildings	Equipment	Others	Unfinished construction and equipment to be accepted	Total
January 1, 2024
Cost	$ 23,726	$ 902,497	$ 5,841,688	$ 993,444	$ 259,751	$ 8,021,106
Accumulated depreciation	-	( 473,363)	(4,029,805)	( 700,596)	-	(5,203,764)
	$ 23,726	$ 429,134	$ 1,811,883	$ 292,848	$ 259,751	$ 2,817,342
2024
January 1	$ 23,726	$ 429,134	$ 1,811,883	$ 292,848	$ 259,751	$ 2,817,342
Addition	-	8,568	128,330	5,275	22,758	164,931
Disposal	-	-	( 69)	( 15)	-	( 84)
Transfer	344,349	140,381	-	-	-	484,730
Depreciation expenses	-	( 9,501)	( 93,257)	( 26,172)	-	( 128,930)
Net exchange difference	( 212)	5,797	31,685	5,138	3,014	45,422
March 31	$ 367,863	$ 574,379	$ 1,878,572	$ 277,074	$ 285,523	$ 3,383,411
March 31, 2024
Cost	$ 367,863	$ 1,065,486	$ 6,064,579	$ 1,016,027	$ 285,523	$ 8,799,478
Accumulated depreciation	-	( 491,107)	(4,186,007)	( 738,953)	-	(5,416,067)
	$ 367,863	$ 574,379	$ 1,878,572	$ 277,074	$ 285,523	$ 3,383,411

	Land	Buildings	Equipment	Others	Unfinished construction and equipment to be accepted	Total
January 1, 2023
Cost	$ 23,617	$ 811,024	$ 5,735,467	$ 881,950	$ 212,340	$ 7,664,398
Accumulated depreciation	-	( 453,224)	(3,888,716)	( 635,963)	-	(4,977,903)
	$ 23,617	$ 357,800	$ 1,846,751	$ 245,987	$ 212,340	$ 2,686,495
2023
January 1	$ 23,617	$ 357,800	$ 1,846,751	$ 245,987	$ 212,340	$ 2,686,495
Addition	-	-	72,655	13,197	51,764	137,616
Disposal	-	-	-	( 16)	-	( 16)
Re- classification	-	( 819)	18,430	-	( 18,430)	( 819)
Depreciation expenses	-	( 6,946)	( 107,676)	( 21,982)	-	( 136,604)
Net exchange difference	19	8,560	2,960	1,180	( 1,643)	11,076

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March 31	$ 23,636	$ 358,595	$ 1,833,120	$ 238,366	$ 244,031	$ 2,697,748
March 31, 2023
Cost	$ 23,636	$ 819,753	$ 5,816,549	$ 894,980	$ 244,031	$ 7,798,949
Accumulated depreciation	-	( 461,158)	(3,983,429)	( 656,614)	-	(5,101,201)
	$ 23,636	$ 358,595	$ 1,833,120	$ 238,366	$ 244,031	$ 2,697,748

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

2. On November 30, 2021, the Company's board of directors resolved to purchase pre-sale factory and office buildings, and it would be transferred from prepayment for land and building (presented as other non-current assets) to land and buildings in the state available for use in the first quarter of 2024.

(IX) Lease transaction - Lessee

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

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

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

are as follows:
	March 31,2024	December 31,2023		March 31,2023
	Book value	Book	value	Book value
Land	$ 185,922	$	185,570	$ 198,824
Buildings	261,181		95,539	162,765
	$ 447,103	$	281,109	$ 361,589
	January1 to March	31,2024	January1 to March 31,2023
	Depreciation expenses		Depreciation expenses
Land	$ 2,243		$ 2,319
Buildings	21,401		22,389
	$ 23,644		$ 24,708

1. The increase in the Group's right-of-use assets from January 1 to March 31, 2024 and 2023 were NTD 185,003 and NTD 1,139, respectively.

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

	January1 to March 31,2024	January1 to March 31,2023
Items affecting current profit and loss
Interest expenses on lease liabilities	$ 2,182	$ 1,794
Expenses of short-term lease contracts	10,057	3,164

1. The Group's total lease cash outflows from January 1 to March 31, 2024 and 2023 were NT$13,740 and NT$14,330, respectively.

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

2. (X) Investment property

Investment property
	Land	Buildings	Total
January 1, 2024
Cost	$ 79,051	$ 106,546	$ 185,597
Accumulated depreciation and impairment	-	( 85,674)	( 85,674)
	$ 79,051	$ 20,872	$ 99,923
2024
January 1	$ 79,051	$ 20,872	$ 99,923
Depreciation expenses	-	( 395)	( 395)
Net exchange difference	463	( 654)	( 191)
March 31	$ 79,514	$ 19,823	$ 99,337
March 31, 2024
Cost	$ 79,514	$ 106,949	$ 186,463
Accumulated depreciation and impairment	-	( 87,126)	( 87,126)
	$ 79,514	$ 19,823	$ 99,337
	Land	Buildings	Total
January 1, 2023
Cost	$ 79,107	$ 108,215	$ 187,322
Accumulated depreciation and impairment	-	( 87,003)	( 87,003)
	$ 79,107	$ 21,212	$ 100,319
2023
January 1	$ 79,107	$ 21,212	$ 100,319
Depreciation expenses	-	( 407)	( 407)
Net exchange difference	( 1,001)	788	( 213)
March 31	$ 78,106	$ 21,593	$ 99,699
March 31, 2023
Cost	$ 78,106	$ 108,591	$ 186,697
Accumulated depreciation and impairment	-	( 86,998)	( 86,998)
	$ 78,106	$ 21,593	$ 99,699

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

	January1 to March 31,2024	January1 to March 31,2023
Rental income of investment property	$ 7,057	$ 6,899
Direct operating expenses of investment property that generate rental income in the current period	$ 395	$ 407

1. The fair value of the investment properties held by the Group as of March 31, 2024, December 31, 2023, and March 31, 2023 were NT$376,193, NT$364,547, and NT$419,829, respectively, which was the valuation of the assessment by comparative method with the market transaction prices obtained by the Group. The result indicated Level 3 fair value.

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

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(XI) Intangible asset

angible asset
	Computer software	Goodwill	Total
January 1, 2024
Cost	$ 20,397	$ 36,141	$ 56,538
Accumulated amortization and	( 2,866)	-	( 2,866)
impairment
	$ 17,531	$ 36,141	$ 53,672
2024
January 1	$ 17,531	$ 36,141	$ 53,672
Addition	1,859	-	1,859
Amortization expenses	( 955)	-	( 955)
(administrative expenses of the main
series)
Net exchange difference	1,390	619	2,009
March 31	$ 19,825	$ 36,760	$ 56,585
March 31, 2024
Cost	$ 22,257	$ 36,760	$ 59,017
Accumulated amortization and	( 2,432)	-	( 2,432)
impairment
	$ 19,825	$ 36,760	$ 56,585
			Goodwill
January 1, 2023
Cost			$ 37,072
Accumulated amortization and			-
impairment
			$ 37,072
2023
January 1			$ 37,072
Net exchange difference			32
March 31			$ 37,104
March 31, 2023
Cost			$ 37,104
Accumulated amortization and			-
impairment
			$ 37,104

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

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

3. Goodwill is allocated to the cash-generating units of the Group identified by operating segments. The recoverable amount is estimated based on the value in use, and the value in use is calculated based on the pre-tax cash flow forecast in the financial budget approved by the management. The recoverable amount of the Group based on the value

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in use exceeds the book value, so there is no impairment of goodwill.

(XII) Short-term borrowings

Short-term borrowings
Nature of the borrowings	March 31,2024	Interest Rate	Collateral
Bank borrowings - secured borrowings	$ 286,372	3.10%~3.85%	Description 1.
Bank loans - Credit loans	479,147	3.92%~5.85%	None.
	$ 765,519
Nature of the borrowings	December 31,2023	Interest Rate	Collateral
Bank borrowings - secured borrowings	$ 98,462	3.6%-3.92%	Description 1.
Bank loans - Credit loans	466,910	3.92%-5.85%	None.
	$ 565,372
Nature of the borrowings	March 31,2023	Interest Rate	Collateral
Bank loans - Credit loans	$ 1,515,768	3.22%-5.41%	None.

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

2. As of March 31, 2024 and 2023, the Group's undrawn borrowing lines were NT$7,487,827, and NT$8,173,669, respectively.

(XIII) Other payables

Other payables
	March 31,2024	December 31,2023	March 31,2023
Dividends payables	$ 673,850	$ -	$ -
Salary, bonus, and employee remuneration payable	533,004	562,961	475,942
Utility fees payable	48,302	28,814	67,394
Consumables payable	35,688	50,612	18,145
Repair expenses payable	30,626	58,443	45,117
Equipment payment payable	8,386	129,870	155,171
Others	477,005	387,938	543,602
	$ 1,806,861	$ 1,218,638	$ 1,305,371

(XIV) Pension

1. Measures for defined retirement benefits

2. (1) The company and Tekcon Electronics Corporation (hereinafter referred to as Tekcon) have in place measures for defined benefit retirement in accordance with the provisions of the Labor Standards Act, which applies to the service years of all regular employees before the implementation of the “Labor Pension Act” on July 1, 2005, and the subsequent service years of employees who choose to continue to apply the Labor Standards Act after the implementation of the “Labor Pension Act.” If an employee is eligible for retirement, the pension payment shall be based on the service years and the average monthly salary of the six months before retirement. Two base numbers shall be given for each full year of service within 15 years (inclusive), and one base number shall be given for each full year of service over 15 years, but the accumulated 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

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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) From January 1 to March 31, 2024 and 2023, the Group recognized pension cost amounting to $673 and $693, respectively, in accordance with the above regulations governing the recognition of pension fund.

• (3) The Group expected to appropriate $1,354 for payment to the retirement plan for 2025.

• Regulations for the defined appropriation of pension fund

• (1) Since July 1, 2005, the company and Tekcon have formulated measures for defined retirement allocation in accordance with the “Labor Pension Act” which applies to employees of Taiwan nationality. For employees of the company and Tekcon who choose to apply the labor retirement pension system of the “Labor Pension Act”, 6% of their monthly salary is allocated as labor pension to the employee's personal account at the Labor Insurance Bureau. The payment of labor pension shall be based on the balance of the employee's individual pension account and the number of accumulated benefits and shall be paid in the form of monthly pension or lump sum pension payment.

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

• (3) From January 1 to March 31, 2024 and 2023, the Group recognized pension cost amounting to $41,378 and $39,209, respectively, in accordance with the above regulations governing the recognition of pension fund.

(XV) Share capital

As of March 31, 2024, the authorized capital of the Company comprised 600,000,000 shares (including 30,000,000 shares under employee subscription warrants or subscription rights of convertible bonds); 518,346,282 shares were outstanding with a par value of NT$10 per share.

(XVI) Capital surplus

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

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(XVII) Retained earnings

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

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

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

4. 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.

5. 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.

6. On March 13, 2024, the Company’s board of directors passed the 2023 earnings distribution proposal, and the shareholders’ meeting passed the 2022 earnings distribution proposal on June 9, 2023 as follows:

	2023	2023	2022	2022
	Amount	Dividend per share(NT$)	Amount	Dividend per share(NT$)
Legal reserve	$ 125,854		$ 131,884
Special reserve	25,528		312,772
Cash dividends	673,850	$ 1.30	725,685	$ 1.40
	$ 825,232		$ 1,170,341

The abovementioned 2022 earnings distribution is consistent with the resolution of the Company's Board of Directors on March 14, 2023. Please visit the MOPS of the Taiwan Stock Exchange for details.

(XVIII) Other items of equity

Financial assets at FVTOCI	Adjustment for currencyconversion
		Total

~43~

January 1, 2024	($ 268,673)	($ 1,142,062)	($ 1,410,735)
Unrealized profit or loss of financial products - Group	46,801	-	46,801
Transfer of valuation adjustment to retained earnings -Group	( 58,125)	-	( 58,125)
Currency conversion difference - Group	-	220,133	220,133
March 31, 2024	($ 279,997)	($ 921,929)	($ 1,201,926)

	Financial assets at FVTOCI	Adjustment for currencyconversion	Total
January 1, 2023	($ 419,841)	($ 965,367)	($ 1,385,208)
Unrealized profit or loss of financial products - Group	263,821	-	263,821
Currency conversion difference - Group	-	( 12,735)	( 12,735)
March 31, 2023	($ 156,020)	($ 978,102)	($ 1,134,122)

(XIX) Non-controlling interests

Non-controlling interests	Non-controlling interests
		2024	2023
January 1		$ 1,941,812	$ 1,870,302
Share of non-controlling interest:
Net profit of the current period		28,883	43,050
Coversion difference from the coversion of financial statements of a foreign operation		23,335
			( 16,937)
March 31		$ 1,994,030	$ 1,896,415
	Operating revenue
		January1 to March 31,2024	January1 to March 31,2023
Revenue from customer contracts		$ 4,657,870	$ 6,080,658

(XX) Operating revenue

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:
	March 31,2024	December 31, 2023	March 31,2023	January1,2023
Contractual liabilities	$ 195,348	$ 181,376	$ 210,541	$ 273,608

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

	January1 to March 31,2024	January1 to March 31,2023
Opening balance of contract liabilities recognized as income in the current	$ 57,735	$ 85,492

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period

(XXI) Other income

ther income
	January1 to March 31,2024	January1 to March 31,2023
Rental income	$ 11,964	$ 8,954
Dividend income	5	2
Subsidy income	11,123	1,258
Other income - Other	13,384	2,049
	$ 36,476	$ 12,263

(XXII) Other gains and losses

ther gains and losses
	January1 to March 31,2024	January1 to March 31,2023
Net gains of financial assets and liabilities measured at fair value through the income	$ 61	$ 10,322
Gains from the disposal of property, plant and equipment	28	124
Net foreign currency conversion gain (loss)	37,979
		( 19,091)
Loss on disposal of investments	-	( 1,079)
Others	( 1,675)	312
	$ 36,393	($ 9,412)

(XXIII) Employee benefit, depreciation and amortization expenses

mployee benefit, depreciation and	amortization expenses
Bynature	January1 to March 31,2024	January1 to March 31,2023
Employee benefits expense
Salary expenses	$ 669,733	$ 823,697
Labor and national health insurance expenses	22,596	22,131
Pension expenses	42,051	39,902
Other HR expenses	44,090	51,303
	$ 778,470	$ 937,033
Depreciation expenses	$ 152,969	$ 161,719
Amortization expenses	$ 2,169	$ 2,391

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

2. The estimated amounts of the Company’s employee remuneration from January 1 to March 31, 2024 and 2023 were NT$9,915 and NT$18,239, respectively. The remuneration to the Directors was estimated at $991 and $1,824, respectively. The aforementioned amount was presented as salary expense in the book.

The period from January 1 to March 31, 2024 and 2023 are based on the profit status

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as of the current period. It is estimated according to the proportion specified in the articles of association of the Company.

The amounts of employee remuneration and director's remuneration for 2023 were NT$74,429 and NT$7,443, respectively, which were consistent with the amounts recognized in the 2023 financial statements and paid in cash. The unpaid 2023 employee remuneration and director's remuneration as of March 31, 2024 were in the amounts of NT$74,429 and NT$7,443, respectively, and recognized in “Other payables”.

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

(XXIV) Financial costs

nancial costs
	January1 to March 31,2024	January1 to March 31,2023
Interest expenses on bank loans	$ 7,541	$ 24,702
Interest expenses on lease liabilities	2,182	1,794
Other financial costs	4,718	1,454
	$ 14,441	$ 27,950

(XXV) Income tax

1. Income tax expense

Components of income tax expenses:

	January1 to March 31,2024	January1 to March 31,2023
Income tax for the current period:
Income tax arising from current income	$ 17,520	$ 108,541
Income tax under (over) estimates of previous years	3,327	( 23,213)
Total income tax for the current period	20,847	85,328
Deferred income tax:
The original value and reversal of temporary differences	37,055	14,763
Income tax expense	$ 57,902	$ 100,091

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

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

3. The Group falls within the scope of the Pillar 2 Model Rules promulgated by the Organization for Economic Co-operation and Development. The Pillar 2 has not yet taken effect in the place where the Group's subsidiaries are registered. Therefore, as of March 31, 2024, the Group did not have significant exposure to current income tax.

The Group has applied the amendments to IAS No. 12 "Income Tax" issued on May 23, 2023, and applied the exception to the recognition of deferred tax assets and liabilities and related information related to Pillar Two income tax.

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(XXVI) Earnings per share (EPS)

rnings per share (EPS)
	January1 to March 31,2024
	After-tax amount	The weighted average number of outstanding shares (1000 shares)	Earnings per share (EPS) (NTD)
Basic earnings per share
Net income for the period attributable to the	$ 169,698	518,346	$ 0.33
common shareholders of the parent company
Diluted earnings per share
Net income for the period attributable to the	169,698	518,346
common shareholders of the parent company
Dilutive effects of the potential common
shares-
Employee remuneration	-	2,056
Net income for the period attributable to the	$ 169,698	520,402	$ 0.33
common shareholders of the parent company
plus the effect of potential common shares
	January 1 to March 31, 2023
	After-tax amount	The weighted average number of outstanding shares (1000 shares)	Earnings per share (EPS) (NTD)
Basic earnings per share
Net income for the period attributable to the	$ 296,734	518,346	$ 0.57
common shareholders of the parent company
Diluted earnings per share
Net income for the period attributable to the	296,734	518,346
common shareholders of the parent company
Dilutive effects of the potential common
shares-
Employee remuneration	-	2,171
Net income for the period attributable to the	$ 296,734	520,517	$ 0.57
common shareholders of the parent company
plus the effect of potential common shares

(XXVII) Supplementary information on cash flow

Investment activities with partial cash payment:

	January1 to March 31,2024	January1 to March 31,2023
Purchase of property, plant and	$ 164,931	$ 137,616
equipment
Add: equipment payable at the	129,870	194,860
beginning of the period
Less: equipment payable at the	( 8,386)	( 155,171)
end of the period
Effect on foreign currency	1,245	1,061
exchange differences
Cash paid during the period	$ 287,660	$ 178,366

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(XXVIII) Changes in liabilities from financing activities

		2024	2024
	Short-term borrowings	Lease liabilities	Total liabilities from financing activities
January 1	$ 565,372	$ 99,702	$ 665,074
Changes in financing cash flow	179,848	( 1,501)	178,347
Effect of exchange rate changes	20,299	3,925	24,224
Other non-cash changes	-	163,717	163,717
March 31	$ 765,519	$ 265,843	$ 1,031,362

		2023	2023
	Short-term borrowings	Lease liabilities	Total liabilities from financing activities
January 1	$ 2,101,238	$ 188,754	$ 2,289,992
Changes in financing cash flow	( 567,596)	( 11,166)	( 578,762)
Effect of exchange rate changes	( 17,874)	794	( 17,080)
Other non-cash changes	-	( 10,099)	( 10,099)
March 31	$ 1,515,768	$ 168,283	$ 1,684,051

VII. Related Party Transactions

(I) Related party’s name and relationship

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

(Note 1) The Group has lost control over it since March 2023 but still has significant influence on it, so it is an affiliate of the Group.

(II) Major transactions with related parties

1. Operating revenue

Operating revenue
	January1 to March 31,2024	January1 to March 31,2023
With significant influence on the group
- Hon Hai Precision Industry Co., Ltd. and subsidiaries	$ 803,544	$ 1,622,087
Other related parties
- Sharp and subsidiaries	352,289	910,813
- Others	28,045	107,232
Affiliates	129	-

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$ 1,184,007 $

2,640,132

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
	January1 to March 31,2024	January1 to March 31,2023
With significant influence on the group
- Hon Hai Precision Industry Co., Ltd. and subsidiaries	$ 506,744	$ 526,619
Other related parties
- Foxconn Technology Co., Ltd. and subsidiaries		589,004
	205,693
Affiliates	998	1,406
	$ 713,435	$ 1,117,029

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

3. Receivables from related parties

Receivables from related parties
	March 31,2024	December 31,2023	March 31,2023
Accounts receivable:
With significant influence on the group
- Hon Hai Precision Industry Co., Ltd. and subsidiaries	$ 1,451,350	$ 1,846,268	$ 1,954,646
Other related parties
- Sharp and subsidiaries	679,886	945,771	859,137
- Others	43,903	54,057	263,454
Affiliates	284	274	536
	2,175,423	2,846,370	3,077,773
Less: Allowance for impairment loss	( 908)	( 1,159)	( 1,228)
	$ 2,174,515	$ 2,845,211	$ 3,076,545

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

	March 31,2024	December 31,2023	March 31,2023
Accounts payable:
With significant influence on the group
- Hon Hai Precision Industry Co., Ltd. and subsidiaries	$ 847,746	$ 1,029,857	$ 864,448
Other related parties
- Foxconn Technology Co., Ltd. and subsidiaries	300,948	570,013	470,918

~49~

Affiliates	-	-	81
	$ 1,148,694	$ 1,599,870	$ 1,335,447

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

5. Contractual liabilities

Contractual liabilities
	March 31,2024	December 31,2023	March 31,2023
With significant influence on the group
- Hon Hai Precision Industry Co., Ltd. and subsidiaries	$ 56,662	$ 63,987	$ 94,681

The preceding contract liabilities of NT$56,662, NT$63,987, and NT$93,422 as of March 31, 2024, December 31, 2023, and March 31, 2023 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) Acquisition of right-of-use assets

The Group acquired right-of-use assets of NT$185,003 and NT$0 from related parties during January 1 to March 31, 2024 and 2023, respectively.

• (3) Lease liabilities:

A. Ending balance

) Lease liabilities: A. Ending balance
	March 31,2024	December 31,2023		March 31,2023
With significant influence on the group	$ 176,341
		$	-	$ 29,724
B. Interest expenses
	January1 to March	31,2024	January1 to March 31,2023
With significant influence on the group			$ 250
	$	1,095

(III) Compensation of key management personnel

	January1 to March 31,2024	January1 to March 31,2023
Short-term employee benefits	$ 4,222	$ 4,256
Post-employment benefits	60	60
Total	$ 4,282	$ 4,316

VIII.Pledged Assets

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

Asset item		Book value		Guaranteepurpose
	March 31,2024	December 31,	March 31,2023
		2023
Pledged time deposit and restricted bank deposit (listed as financial assets at	$ 725,047	$ 939,911	$ 678	Bond for bank acceptances, issuance of secured letters of credit,

~50~

amortized cost - current)			etc.
Pledged time deposit and restricted bank deposit (listed as financial assets at amortized cost - non-current)	-	4,760	4,874 Bond for bank acceptances, customs deposits
Property, plant, and equipment	31,538	32,422	38,186 Guarantee mortgage for bank line overdraft (note)
			Guarantee mortgage for
Investment property	10,056	10,257	bank line overdraft (note) 10,207
Right-of-use assets	53,357	52,759	55,205 Bond for bank acceptances
Investment by equity method
(Long Time Tech. Co., Ltd.)	182,274	184,983	199,494 Contractual liabilities
	$ 1,002,272	$ 1,225,092	$ 308,644

Note: As of March 31, 2024, the land, buildings and structures above have been pledged as collateral for the overdraft facilities of financial institutions since 2005. The overdraft had been paid off, but the pledge has not been canceled.

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

None.

X. Major Disaster Losses

None.

XI. Significant Subsequent Events

None.

XII. Others

(I) Capital management

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

The Group's strategy for 2024 is the same as that in 2023, both of which are committed to maintaining the net debt ratio below 70%.

(II) Financial instrument

1. Types of financial instruments

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The book values of the financial assets measured at amortized cost as classified by the Group as per IFRS 9 (including cash and cash equivalents, the carrying amounts of financial assets, notes receivable, accounts receivable (including related parties), and other receivables) as of March 31, 2024, December 31, 2023, and March 31, 2023 were NT$13,470,607, NT$14,080,377, and NT$14,309,825, respectively. The book values of financial liabilities measured at amortized cost as classified by the Group (including shortterm borrowings, notes payable, accounts payable (including related parties), and other payables) were NT$7,723,114, NT$8,164,636, and NT$8,106,023, respectively. In addition, the book values of lease liabilities as of March 31, 2024, December 31, 2023, and March 31, 2023 were NT$265,843, NT$99,702, and NT$168,283, respectively. Please refer to Notes 6 (2) and 6 (6) for the book values of financial assets/liabilities measured at fair value through profit or loss and financial assets measured at fair value through other comprehensive income.

2. Risk management Policy

• (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

~52~

large. (Note: The group has offices in many countries around the world, so there is an exchange rate risk in a variety of different currencies, but the main ones are the US dollar, RMB, and Malaysian ringgit.)

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

• B. Management

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

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

• C. Extent

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

				March 31,2024
		Foreign currency (thousand)	Exchang e rate	Book value (NTD)	Sensitivityanalysis
					Range of change	Impact on profit and loss
(Foreign currency:
functional currency)
Financial assets
	Monetary item
	USD: NTD	$ 68,201	32.00	$ 2,182,432	5%	$109,122
	USD: RMB	53,102	7.0950	1,660,752	5%	83,038
	USD: MYR	56,248	4.7237	1,799,936	5%	89,997
	EUR: MYR	2,900	5.0868	99,934	5%	4,997
	Foreign operations
	USD: NTD	316,588	32.00	10,130,807
Financial liabilities
	Monetary item
	USD: NTD	62,033	32.00	1,985,056	5%	99,253
	USD: RMB	4,793	7.0950	149,900	5%	7,495
	USD: MYR	36,753	4.7237	1,176,096	5%	58,805
			December 31,2023
			Exchang e rate		Sensitivityanalysis
		Foreign			Range of change	Impact on profit and loss
		currency		Book value
		(thousand)		(NTD)
(Foreign currency:
functional currency)
Financial assets Monetary item
	USD: NTD	$ 98,290	30.71	$ 3,018,486	5%	$ 150,924
	USD: RMB	63,248	7.0827	1,938,352	5%	96,918

~53~

	USD: MYR	67,608	4.5956	2,076,242	5% 103,812	5% 103,812
	EUR: MYR	3,234	5.0849	109,891	5% 5,495
	Foreign operations
	USD: NTD	319,080	30.71	9,798,962
Financial liabilities
	Monetary item
	USD: NTD	79,171	30.71	2,431,341	5% 121,567
	USD: RMB	5,891	7.0827	180,541	5% 9,027
	USD: MYR	48,568	4.5956	1,491,523	5% 74,576
				March 31,2023
		Foreign currency (thousand)	Exchang e rate	Book value (NTD)	Sensitivityanalysis
					Range of change	Impact on profit and loss
(Foreign currency:
functional currency)
Financial assets
	Monetary item
	USD: NTD	$ 103,812	30.45	$ 3,161,075	5%	$ 158,054
	USD: RMB	45,280	6.8717	1,378,708	5%	68,935
	USD: MYR	110,302	4.4130	3,358,696	5%	167,935
	EUR: MYR	3,056	4.8043	101,306	5%	5,065
	Foreign operations
	USD: NTD	364,164	30.45	11,088,799
Financial liabilities
	Monetary item
	USD: NTD	96,362	30.45	2,934,223	5%	146,711
	USD: RMB	6,642	6.8717	202,239	5%	10,112
	USD: MYR	33,964	4.4130	1,034,204	5%	51,710

D. Nature

The total amounts of exchange gains and losses (including realized and unrealized) recognized in the group's monetary items due to exchange rate fluctuations for the three months ended March 31, 2024 and 2023 were NT$37,979 in gains and NT$19,091 in losses, 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 the prices of these equity instruments rose or fell by 1%, with all other factors remain unchanged, the impact on other comprehensive income of equity investment classified measured at fair value through other comprehensive income would increase or decrease by NT$18,329 and NT$20,048, respectively, for the three months ended March 31, 2024 and 2023.

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.

~54~

(2) Credit risk

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

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

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

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

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

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

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

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

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

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

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

	March 31,2024	December 31,2023	March 31,2023
Not Past Due	$ 5,781,363	$ 6,318,839	$ 6,122,212
Less than 90 days	20,780	9,869	41,730
91 ~ 180 days	843	1,412	3,263
More than 181 days	38	38	39
	$ 5,803,024	$ 6,330,158	$ 6,167,244

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

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

The Group’s other receivables are primarily tax refund receivables, receivables on disposal of investments, and receivables on advance payments for other parties. Expected credit loss are estimated individually for other significant receivables in default; there is no concern over material non-performance or non-repayment with other counterparties. Therefore, a loss allowance for 12-month expected credit

~55~

loss is recognized. The allowances for loss recognized by the Group on March 31, 2024, December 31, 2023, and March 31, 2023 were NT$103,938, NT$99,748 and NT$98,904, respectively.

• I. The Group classifies the accounts receivable of customers according to the characteristics of credit rating standards, and for future-looking considerations, the Group adjusts the loss rate established according to the historical and current information of a specific period to estimate the allowance loss of notes receivable and accounts receivable. Loss rate methods as of March 31, 2024, December 31, 2023, and March 31, 2023 are as follows:

	Group1	Group2	Group3	Group4	Total
March 31,
2024
Expected loss	0.04%	0.04%	0.09%	0.1%~100%
rate
Total Book	$ 5,482,508	$ 310,774	$ 306	$ 9,436	$ 5,803,024
value
Allowance for	$ 2,193	$ 124	$ -	$ 3,251	$ 5,568
loss
December 31,
2023
Expected loss	0.04%	0.04%	0.09%	0.1%~100%
rate
Total Book	$ 5,986,776	$ 336,578	$ 87	$ 6,717	$ 6,330,158
value
Allowance for	$ 2,395	$ 135	$ -	$ 3,511	$ 6,041
loss
	Group1	Group2	Group3	Group4	Total
March 31,
2023
Expected loss	0.04%	0.04%	0.09%	92.21%
rate
Total Book	$ 5,799,174	$ 357,375	$ -	$ 10,695	$ 6,167,244
value
Allowance for	$ 2,320	$ 143	$ -	$ 9,889	$ 12,352
loss

• 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:

simplified approach is as follows:
	2024	2023
January 1	$ 6,041	$ 7,194
(Reversed) recognized impairment loss	( 530)	5,128
Effect on foreign currency exchange differences	57	30

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$ 5,568 $ 12,352

March 31

• K. All the Group’s financial assets measured at after-amortization cost as of March 31, 2024, December 31, 2023 and March 31, 2023 had a low credit risk. Therefore, the book value is measured according to the expected credit loss in 12 months after the balance sheet date.

• (3) Liquidity risk

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

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

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

	Less than 1 year	1 ~ 2years	2 ~ 5years	Total
March 31, 2024
Non-derivative financial
liabilities:
Lease liabilities	$ 79,483	$ 70,867	$ 132,764	$ 283,114
	Less than 1 year	1 ~ 2years	2 ~ 5years	Total
December 31, 2023
Non-derivative financial
liabilities:
Lease liabilities	$ 43,026	$ 33,750	$ 30,539	$ 107,315
	Less than 1 year	1 ~ 2years	2 ~ 5years	Total
March 31, 2023
Non-derivative financial
liabilities:
Lease liabilities	$ 85,392	$ 39,740	$ 55,085	$ 180,217

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

(III) Fair value information

1. The levels of evaluation techniques used to measure the fair value of financial and non-

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financial instruments are defined as follows:

• 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.

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

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

1. Financial instruments not measured at fair value

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

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

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

nature is as follows:
March 31, 2024	Level 1	Level 2	Level 3	Total
Financial assets:
Repetitive fair value
Financial assets at	$ 11,055	$ -	$ -	$ 11,055
FVTPL
-Open-end funds
Financial assets at
FVTOCI
- Equity securities	$ 909,632	$ -	$ 923,284	$ 1,832,916
December 31, 2023	Level 1	Level 2	Level 3	Total
Financial assets:
Repetitive fair value
Financial assets at
FVTPL
-Open-end funds	$ 10,536	$ -	$ -	$ 10,536
Financial assets at
FVTOCI
- Equity securities	$ 1,016,823	$ -	$ 849,276	$ 1,866,099
March 31, 2023	Level 1	Level 2	Level 3	Total
Financial assets:
Repetitive fair value
Financial assets at
FVTPL
-Open-end funds	$ 10,339	$ -	$ -	$ 10,339
Financial assets at
FVTOCI

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$ 1,085,309 $

• $ 919,515 $ 2,004,824

• Equity securities

• (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 (OTC) company stock	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 non-financial instruments in the consolidated balance sheet. The price information and parameters used in the evaluation process have been carefully evaluated and appropriately adjusted according to current market conditions.

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

• There was no transfer between Levels 1 and 2 during the three months ended March 31, 2024 and 2023.

• The following table shows the changes in level 3 during the three months ended March 31, 2024 and 2023:

2024 and 2023:
	Equitysecurities
	2024	2023
January 1	$ 849,276	$ 925,274
Profit recognized in other comprehensive income	40,535	1,480
Effect on foreign currency exchange differences	33,473	( 7,239)
March 31	$ 923,284	$ 919,515

1. There was no transfer into or out of Level 3 during the three months ended March 31, 2024 and 2023.

2. For the fair value of level 3 of the Group, the investment management department is

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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:

	Fair value on March 31,2024	Evaluation techniques	Significant unobservable input value	Range (weighted average)	Relationship between input value and fair value
Non-derivative equity instruments:
Non-listed and non-OTC stocks	$ 846,863	Net asset value method	Lack of market liquidity discount	21%	The higher the market liquidity discount, the lower the fair value.
Non-listed and non-OTC stocks	76,421	Market method	Price–to- book ratio	1.38	The higher the multiplier, the higher the fair value.
			Lack of market liquidity discount	20%	The higher the market liquidity discount, the lower the fair value.
	Fair value on December 31, 2023	Evaluation techniques	Significant unobservable input value	Range (weighted average)	Relationship between input value and fair value
Non-derivative equity instruments:
Non-listed and non-OTC stocks	$ 785,068	Net asset value method	Lack of market liquidity discount	22%	The higher the market liquidity discount, the lower the fair value.
Non-listed and non-OTC stocks	64,208	Market method	Price–to- book ratio	1.17	The higher the multiplier, the higher the fair value.
			Lack of market liquidity discount	20%	The higher the market liquidity discount, the lower the fair value.
	Fair value on March 31,2023	Evaluation techniques	Significant unobservable	Range (weighted	Relationship between input

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	input value	average)	value and fair value
Non-derivative equity instruments:
Non-listed and non-OTC stocks $ 856,319 Net asset value method	Lack of market liquidity discount	24%	The higher the market liquidity discount, the lower the fair value.
Non-listed and non-OTC stocks 63,196 Comparable public company approach	Price–to- book ratio	1.18	The higher the multiplier, the higher the fair value.
	Lack of market liquidity discount	20%	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:

				Recognized in other comprehensive income	Recognized in other comprehensive income
Financial assets	Period	Input value	Change	Favorable change	Unfavorable change
Equity instruments	March 31, 2024	Lack of market liquidity discount	±1%	$ 3,269	($ 3,269)
Equity instruments	March 31, 2024	Price–to-book ratio	±1%	$ 554	($ 554)
				Recognized in other comprehensive income
Financial assets	Period	Input value	Change	Favorable change	Unfavorable change
Equity instruments	December 31, 2023	Lack of market liquidity discount	±1%	$ 3,023	($ 3,023)
Equity instruments	December 31, 2023	Price–to-book ratio	±1%	$ 549	($ 549)
				Recognized in other comprehensive income
Financial assets	Period	Input value	Change	Favorable change	Unfavorable change
Equity instruments	March 31, 2023	Lack of market liquidity discount	±1%	$ 3,693	($ 3,693)
Equity instruments	March 31, 2023	Price–to-book ratio	±1%	$ 536	($ 536)

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,

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affiliated enterprises and jointly controlled entities): Please refer to Table 3.

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

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

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

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

5. 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.

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

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

(II) Information about investees

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

(III) Information on investments in mainland China

1. Basic information: Please refer to Table 8.

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

3. (IV) Information on major shareholders

Information of major shareholders: Please refer to Table 9.

XIV. Operating Departments Information

(I) General information

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

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

(II) Segments Information

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

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January1 to March 31,2024	Electronic Components	Consumer Electronics and Computer Peripherals	Total
Segment Revenue	$ 2,716,821	$ 1,941,049	$ 4,657,870
Segment profit and loss	$ 114,532	$ 121,765	$ 236,297
January1 to March 31,2023	Electronic Components	Consumer Electronics and Computer Peripherals	Total
Segment Revenue	$ 3,283,008	$ 2,797,650	$ 6,080,658
Segment profit and loss	$ 300,591	$ 163,312	$ 463,903

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

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

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

Profit and loss	January1 to March 31,2024	January1 to March 31,2023
Profit and loss of the segments to be reported	$ 236,297	$ 463,903
Other profit and loss	20,186	( 24,028)
Pre-tax profit and loss of continuing operating departments	$ 256,483	$ 439,875

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Pan-International Industrial Corp. and Subsidiaries Loans to others January 1 to March 31, 2024

Table 1 Serial No. (note 1)	Loan extending company	Borrower	Dealing items (note 2)	Whet her a relate d party	Maximum amount of the period (note 3)	Ending balance (note 8)	Transaction Amounts	Interest Rate Loan nature (note 4) Business Transacti on Amounts (note 5)	Reason for short-term financing (note 6) Provision for allowance for loss for bad debt	Coll	ateral	Loans and limits for individual entities (note 7)	Unit: NTD thousand (unless otherwise noted) Total loan limit (note 7) Re mar ks
										Name	Value
1	Honghuasheng Precision Electronics (Yantai) Co., Ltd.	CJ Electric Systems Co., Ltd.	Other receivable s - related parties	Yes	$ 573,040	$ 573,040	$ 573,040	3.45- 3.65% Short- term financing $ -	Operating turnover $ -	None.	None.	$ 7,751,624	$ 15,503,248

• 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 one by one 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.

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Pan-International Industrial Corp. and Subsidiaries Endorsement/guarantee provided January 1 to March 31, 2024

Table 2 Serial No. (note 1)	Name of company of the endorsement/guarant ee	Guaranteed Party		Endorsement/guar antee limit for a single enterprise (note 3)	Maximum endorsement/guar antee balance of theperiod (note 4)	Endorsement/g uarantee balance of the period (note 5)	Transaction Amounts (note 6)	Amount of endorsement /guarantee backed by assets	Ratio of the accumulated endorsement/guaran tee amount to the net value in the latest financial report	Endorsement/gua rantee limit (note 3)	Endorsement/ guarantee from the parent company to subsidiary (note 7)	Endorsement/ guarantee from subsidiary to parent company (note 7)	Unit: NTD th (unless otherwis Endorsement/ guarantee to mainland China (note 7)	ousand e noted) Rema rks
		Companyname	Relation (note 2)
1 1 2 3	P.I.E Industrial Berhad P.I.E Industrial Berhad Pan-International Precision Electronic Co., Ltd. CJ Electric Systems Co., Ltd.	Pan-International Electronics(M) Sdn.Bhd. PAN-INTERNATIONAL WIRE&CABLE(M) SDN.BHD. CJ Electric Systems Co., Ltd. Wuhu Herzhong Automotive Electronics Co., Ltd.	2 2 4 4	$ 2,111,833 2,111,833 1,649,555 709,483	$ 1,227,990 92,034 462,840 22,040	$ 1,227,990 92,034 462,840 22,040	$ 308,957 4,716 440,800 21,842	- - - -	9.32 0.70 3.51 0.17	$ 4,223,665 4,223,665 1,649,555 709,483	N N N N	N N N N	N N Y Y

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 PIE INDUSTRIAL BERHAD's endorsements or guarantees to others shall not exceed 100% of its net worth; the limit of its endorsement or guarantee to others shall not exceed 50% of its net worth.

• The total amount of endorsements/guarantees shall not exceed 100% of the net worth of the parties making the endorsements/guarantees between the Company and overseas subsidiaries in which the Company holds, directly or indirectly, 100% of the voting shares limit.

• Note 4: The maximum balance of endorsements/guarantees for others in the current year.

• Note 5: The amount approved by the Board of Directors’ meeting shall be filled in. However, if the Board of Directors’ meeting authorizes the chairman of the board to decide in accordance with 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.

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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). March 31, 2024

Table 3 HoldingCompanyName	Type of marketable securities	Name of marketable securities	Relationship with the Holding Company	Financial report Account		Period end		Unit: NTD t (unless otherwis	housand e noted) Remar ks
					Number of shares/beneficiary certificates	Book value	Shares Ratio	Fair value
Pan-International Industrial Corp. Pan-International Industrial Corp. Pan-International Industrial Corp. Yann-Yang Investments Corp. P.I.E Industrial Berhad P.I.E Industrial Berhad P.I.E Industrial Berhad Pan Global Holding Co., Ltd. Pan Global Holding Co., Ltd.	Ordinary corporate bonds Common share Common share Common share Open-end funds Open-end funds Open-end funds Common share B share	Shin Kong Life Insurance Co., Ltd: 2023 1st unsecured accumulated subordinated ordinary corporate bonds Innolux Corporation Syntrend Creative Park Co., Ltd. Lico Technology Corporation Eastspring Investments Islamic Income Fund Affin Hwang Aiiman Money Market Fund I Affin Hwang USD Cash Fund FSK Holdings Limited Cybertan Technology Corp.	None. None. The largest shareholder of this company is the largest shareholder of Hon Hai Precision Industry 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.	Financial assets measured at after- amortization cost - 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 Financial assets measured at fair value through 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 other comprehensive income - Non- current Financial assets measured at fair value through other comprehensive income - Non- current	- 62,973,472 12,831,500 3,400,000 23,689 544,497 255,682 50,400,000 28,498,993	$ 290,000 909,632 76,421 - 87 2,095 8,872 53,342 793,521	- 0.69 5.23 2.73 - - 1.87 17.50 16.87	$ 290,000 909,632 76,421 - 87 2,095 8,873 53,342 793,521

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Table 4

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. January 1 to March 31, 2024

Unit: NTD thousand (unless otherwise noted)

Table 4										Unit: NTD thousand (unless otherwise noted)
Buyer/Seller	Related Party	Relation		Transactio	n Details		Differences i terms from general trans reas	n transaction those of actions and ons	Note/Accounts R	eceivable(Payable) Rem arks Percentage of total notes and accounts receivable (payable)
			Purchase/Sale	Amount	Percentage of total purchase (sale)	Creditperiod	Unit Price	Credit period	Balance
Pan-International Industrial Corp. Pan-International Industrial Corp. Pan-International Industrial Corp. Pan-International Industrial Corp. Pan-International Industrial Corp. PAN-INTERNATIONAL ELECTRONICS(M) SDN.BHD. New Ocean Precision Component (Jiangxi) Co., Ltd. PAN-INTERNATIONAL ELECTRONICS(M) SDN.BHD.	Hongfujin Precision Industry (Wuhan) Co., Ltd. Hon Hai Precision Industry Co., Ltd. Honghuasheng Precision Electronics (Yantai) Co., Ltd. Pan-International Precision Electronic Co., Ltd. FOXCONN INTERCONNECT TECHNOLOGY LIMITED SHARP NORTH MALAYSIA SDN.BHD. FOXCONN INTERCONNECT TECHNOLOGY LIMITED Foxconn Technology Co., Ltd	Subsidiary of the indirect reinvestment of Hon Hai Precision Industry Co., Ltd. A company that evaluates the Company by the equity method 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. Other related parties Subsidiary of the indirect reinvestment of Hon Hai Precision Industry Co., Ltd. Other related parties	Sales Sales Purchase Purchase Purchase Sales Sales Purchase	$ 173,136 187,452 566,256 165,155 337,349 342,278 251,665 205,691	12 13 38 11 23 22 79 14	Monthly settlement 90 days T/T Monthly settlement 90 days T/T Monthly settlement 90 days Monthly settlement 90 days Monthly settlement 90 days Monthly settlement 30 days Monthly settlement 60 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 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	No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference No significant difference	$ 234,717 287,721 ( 769,417) ( 99,674) ( 447,135) 663,036 509,577 ( 300,944)	14 17 ( 50) ( 6) ( 29) 36 100 ( 35)

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Tekcon Electronics Corporation FOXCONN Subsidiary of the INTERCONNECT indirect reinvestment TECHNOLOGY LIMITED of Hon Hai Precision Industry Co., Ltd.

Purchase

111,740

80 Monthly A single No ( 197,723) ( 85) settlement 120 supplier with significant days no basis for difference comparison

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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. March 31, 2024

Table 5

			March 31, 2024
Table 5 CompanyName	Related Party	Relation	Balance of accounts receivable from relatedparties(Note 1)	Turnover Rate	O	verdue	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. Honghuasheng Precision Electronics (Yantai) Co., Ltd. Pan-International Electronics(M) Sdn.Bhd. New Ocean Precision Component (Jiangxi) Co., Ltd.	Hongfujin Precision Industry (Wuhan) Co., Ltd. Hon Hai Precision Industry Co., Ltd. Pan-International Industrial Corp. SHARP NORTH MALAYSIA SDN.BHD. FOXCONN INTERCONNECT TECHNOLOGY LIMITED	Subsidiary of the indirect reinvestment of Hon Hai Precision Industry Co., Ltd. A company that evaluates the Company by the equity method The Company’s parent company Other related parties Subsidiary of the indirect reinvestment of Hon Hai Precision Industry Co., Ltd.	$ 234,717 287,721 769,417 663,036 509,577	3.42 1.56 3.14 1.72 1.85	$ - 11,812 1,561 486,779 -	- Payment received after the period Payment received after the period - -	$ 53,201 105,207 187,530 77,378 228,121	$ 94 115 298 - 204

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.

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Table 6

Pan-International Industrial Corp. and Subsidiaries Significant Inter-company Transactions during the Reporting Period January 1 to March 31, 2024

	January 1 to March 31, 2024
Table 6 Serial No. (note 1)	Transaction Company	Counterparty	Relationshi p with the transaction parties (Note 2)	T	ransactions (Note	Unit: N (unless oth 4, Note 6)	TD thousand erwise noted)
				Account	Amount	Transacti on Terms	Percentage over consolidated total revenue or total assets (note 3)
0 0 1	Pan-International Industrial Corp. Pan-International Industrial Corp. Honghuasheng Precision Electronics (Yantai) Co., Ltd.	Honghuasheng Precision Electronics (Yantai) Co., Ltd. Pan-International Precision Electronic Co., Ltd. Pan-International Industrial Corp.	1 1 2	Purchase Purchase Accounts receivable	$ 566,256 165,155 769,417	Note 5 Note 5 Note 5	12 4 3

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

• (1) Fill in 0 for the parent company.

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

Note 2: There are three types of relationship with the transaction 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: Transaction prices are negotiated and the collection period is monthly settlement 90 days.

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

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Pan-International Industrial Corp. and Subsidiaries

The name and location of the investee company and other relevant information (excluding mainland China investee companies) March 31, 2024

Table 7 Investor	Investor Company	Location	Main Businesses and Products	Original Inves	tment Amount	Shares held	as at end of t	heperiod	Net income (loss) of the Investee for currentperiod	Unit: (unless ot Investment gains and losses recognized in the currentperiod	NTD thousand herwise noted) Remarks
				End of theperiod	End of lastyear	Shares	Ratio	Book value
Pan-International Industrial Corp. 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. Tekcon Electronics Corporation PAN-INTERNATIONAL ELECTRONICS (MALASIA) SDN. BHD.	Pan Global Holding Co., Ltd. Pan-International Electronics Inc. Yann-Yang Investments Corp. PAN-INTERNATIONAL ELECTRONICS (THAILAND) CO. LTD. Tekcon Electronics Corporation P.I.E. INDUSTRIAL BERHAD (PIB) 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. PAN-INTERNATIONAL CORPORATION (S) PTE. LIMITED. (PIS)	The British Virgin Islands USA Taiwan Thailand Taiwan Malaysia The British Virgin Islands Hong Kong Hong Kong Taiwan Taiwan Singapore	Holding company Sale of electronic products Investment company Production and sales of connection cables Manufacturing and sale of connectors for electronic signal cables Holding company Holding company Holding company Holding company Electronic Components Electronic Components Manufacturing and sale of connectors for electronic signal cables	$ 1,759,731 73,142 363,997 176,587 393,898 44,640 307,200 588,800 3,430,956 646,000 250,000 2,372	$ 1,759,731 73,142 363,997 - 393,898 44,640 307,200 524,800 3,430,956 646,000 250,000 2,372	6,726 28,000 33,316,236 4,090,900 21,960,504 197,459,985 9,600,000 3,120,001 665,799,420 20,187,500 7,812,500 100,000	100 100 100 45 83.58 51.42 100 100 100 16.93 5.48 30	$ 9,886,356 244,451 159,119 173,020 150,350 2,079,337 686,791 1,712,221 3,876,323 470,990 182,274 1,118	$ 109,219 907 ( 10,781) 551 ( 12,887) 63,809 ( 17,772) 55,827 52,522 ( 41,357) ( 41,357) 38	$ 109,219 907 ( 10,781) 248 ( 10,771) 32,811 ( 17,772) 55,827 52,522 ( 7,002) ( 2,709) -	Note 1 Note 2 Note 3 Note 4 Note 5

Note 1: The Company mainly reinvests in Pan-International Electronics (MALAYSIA) SDN. BHD. and Pan-International Wire & Cable (MALAYSIA) SDN. BHD. indirectly through PIB to engage in the production of cable connector or electronic products and of sales in the Malaysia region.

Note 2: The company mainly reinvests in New Ocean Precision Component (Jiangxi) Co., Ltd. indirectly through BAE. Please refer to Table 8 for details on the disclosure of information about the investment in the mainland China. Note 3: The company mainly reinvests in Dongguan Pan-International Precision Electronics Co., Ltd. indirectly through TUI. Please refer to Table 8 for details on the disclosure of information about the investment in the mainland China. Note 4: The company mainly reinvests in Honghuasheng Precision Electronics (Yantai) Co., Ltd. indirectly through EHH. Please refer to Table 8 for details on the disclosure of information about the investment in the mainland China. Note 5: PIS, the Company's sub-subsidiary, conducted a cash capital increase in the first quarter of 2023. The Group did not subscribe for the shares in proportion to the shareholding, resulting in a drop of the shareholding by 30%. Note 6: The relevant figures in this table are in NTD. Where foreign currencies are involved, they will be converted into NTD at the exchange rate on the date of financial reporting.

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January 1 to March 31, 2024

						January	1 to March 31, 2024
Table 8 Name of the investee in mainland China	Main Businesses and Products	Paid-in Capital	Method of Investmen ts(Note 2)	Accumulated outward remittance of investment amount from Taiwan at the beginning of the period	Investmen current	t Flows of period	Accumulated outward remittance of the investment amount from Taiwan in theperiod 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 t (unless otherwis Investment gains repatriated as of the end of theperiod	housand e noted) Remar ks
					Outward	Inward
Honghuasheng Precision Electronics (Yantai) Co., Ltd. Pan- International Precision Electronic Co., Ltd. Pan- International Sunrise Trading Corp. Fuyu properties (Shanghai) Co., Ltd. New Ocean Precision Component	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 Manufacturing and sale of wires, cables, connecting wires, connecting wire connectors, and wire plugs. Production and sales of electrical cables, computer accessories, wireless Bluetooth, Turnkey, etc. 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	$ 2,745,600 524,800 13,224 5,164,082 307,200	2 2 3 2 2	$ 2,832,000 400,000 - 872,000 -	$ - - - - -	$ - - - - -	$ 2,832,000 400,000 - 872,000 -	$ 52,569 55,827 1,446 108,472 ( 17,772)	100 100 100 16.87 100	$ 52,569 55,827 1,446 - ( 17,772)	$ 3,875,812 1,649,555 148,913 793,521 686,789	$ - - - - -	Note 4 Note 6 Note 8

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(Jiangxi) Co.,	sockets and
Ltd.	telecommunications.
CJ Electric	Manufacture and	256,577	3	-	-	-	-	24,507	100		24,507	709,483	-
Systems Co.,	sales of automotive
Ltd.	wiring harness
	products
YiBing Pan-	Auto parts and	165,212	3	-	-	-	- (	9,231)	100	(	9,231)	96,164	-
International	accessories, smart
Vehicle Wire	vehicle equipment
Co., Ltd.	manufacturing, etc.

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Companyname	The accumulated 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).
Pan-International Industrial Corp.	$ 4,537,312	$ 6,542,061	$ -

Note 1: The relevant figures in this table are in NTD. Where foreign currencies are involved, they will be converted into NTD at the exchange rate on the date of financial reporting. Note 2: There are three investment modes:

1. Direct investment in mainland China.

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

3. Other modes.

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

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

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

Note 5: As of December 31, 2023, the Company has the following investment withdrawal cases approved by the Investment Commission of the Ministry of Economic Affairs:

Original investment amount remitted from

			Original investment amount remitted from
Date	Approval letter No.	Investor Company	Taiwan
September 5, 2003 December 9, 2010 May 30, 2011 May 30, 2011 May 30, 2011	0920028972 09900496780 10000205680 10000205690 10000205700	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.	USD 91 thousand 476 thousand 190 thousand 454 thousand 58 thousand
			USD 1,269 thousand

Because these reinvestment companies suffer losses, the amount of investment originally remitted from Taiwan cannot offset the amount of investment in mainland China.

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

• Note 7: In December 2022, the Company was granted a document, IDB No. 11120436260 by the Industrial Development Bureau, MOEA, certifying the compliance with the operation scope of operation headquarters, and no investment limit is required from November 29, 2022 to November 28, 2025.

• Note 8: The Company’s subsidiary Pan Global Holding Co., Ltd. sold 16.87% of its-owned Class A shares of CYBERTAN TECHNOLOGY CORP. in the second quarter of 2021. The reinvestment business Fuyu Property (Shanghai) Co., Ltd. was indirectly disposed of. As of March 31, 2024, the Company indirectly held 16.87% of Class B shares of its reinvestment business Fuyu Property (Shanghai) Co., Ltd.

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Pan-International Industrial Corp. and Subsidiaries Information on major shareholders March 31, 2024 Table 9 Sh	Pan-International Industrial Corp. and Subsidiaries Information on major shareholders March 31, 2024 Table 9 Sh	are
Name of major shareholders	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).

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