Qisda — Audit Report / Information 2023

Nov 10, 2023

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Stock Code:2352

QISDA CORPORATION

Parent-Company-Only Financial Statements With Independent Auditors’ Report For the Years Ended December 31, 2023 and 2022

Address: No. 157, Shan-Ying Rd., Gueishan Dist., Taoyuan City, Taiwan Telephone: 886-3-359-8800

The independent auditors’ report and the accompanying parent-company-only financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors’ report and parent-company-only financial statements, the Chinese version shall prevail.

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Table of contents

Contents 1. Cover Page 2. Table of Contents 3. Independent Auditors’ Report 4. Parent-Company-Only Balance Sheets 5. Parent-Company-Only Statements of Comprehensive Income 6. Parent-Company-Only Statements of Changes in Equity 7. Parent-Company-Only Statements of Cash Flows 8. Notes to the Parent-Company-Only Financial Statements (1) Organization and business (2) Authorization of the parent-company-only financial statements (3) Application of new and revised accounting standards and interpretations (4) Summary of material accounting policies (5) Critical accounting judgments and key sources of estimation uncertainty (6) Significant account disclosures (7) Related-party transactions (8) Pledged assets (9) Significant commitments and contingencies (10) Significant loss from disaster (11) Significant subsequent events (12) Others (13) Additional disclosures (a) Information on significant transactions (b) Information on investees (c) Information on investment in Mainland China (d) Major shareholders (14) Segment information 9. List of major account titles

Page

1 2 3 4 5 6 7 8 8 8～9 9～25 26 26～60 61～70 70 71 71 71 71～72 73, 74～87 73, 88～93 73, 94～106 73 73 107～120

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Independent Auditors’ Report

To the Board of Directors of Qisda Corporation:

Opinion

We have audited the parent-company-only financial statements of Qisda Corporation, which comprise the parent-company-only balance sheets as of December 31, 2023 and 2022, the parent-company-only statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes to the parentcompany-only financial statements, including a summary of material accounting policies.

In our opinion, based on our audits and the reports of other auditors (please refer to the Other Matter section), the accompanying parent-company-only financial statements present fairly, in all material respects, the financial position of Qisda Corporation as of December 31, 2023 and 2022, and its financial performance and its cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Parent-Company-Only Financial Statements section of our report. We are independent of Qisda Corporation in accordance with The Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. Based on our audits and the reports of other auditors, we believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis of our opinion.

Key Audit Matters

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

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

1. Revenue recognition

Please refer to Note 4(p) for the accounting policy on revenue recognition, and Note 6(v) for the related disclosures of revenue, respectively, to the parent-company-only financial statements.

Description of key audit matter:

Qisda Corporation recognizes revenue depending on the various trade terms in each individual sale transaction, which are considered to be complex in determining the timing of revenue recognition. Therefore, revenue recognition has been identified as one of the key audit matters.

How the matter was addressed in our audit:

In relation to the key audit matters above, our principal audit procedures included performing a sample test on the design and operating effectiveness of Qisda Corporation’s internal controls over financial reporting related to the sales and collection cycle; assessing whether revenue is recognized based on the trade terms with customers through reviewing the related sales contracts or other trade documents; performing a sample test on the sales transactions that took place before and after the balance sheet date to determine when the performance obligation has been satisfied by transferring control over the goods to a customer to assess the accuracy of the timing of revenue recognition; reviewing and analyzing the reason for significant sales returns and allowances that took place after the balance sheet date to access the reasonableness of the related accrued sales returns and allowances.

1. Valuation of inventories

Please refer to Note 4(g) for the inventory accounting policy, Note 5(a) for estimation uncertainty of inventory valuation, and Note 6(f) for the related inventory write-down disclosures, respectively, to the parent-company-only financial statements.

Description of key audit matter:

Inventories are measured at the lower of cost and net realizable value. Due to the rapid technological innovations and highly competitive environments in the electronic industry which Qisda Corporation is engaged in, the life cycle of electronic products are short and their market prices fluctuate rapidly, which could possibly result in a price decline and obsolescence of inventory, wherein the inventory cost may exceed its net realizable value. Therefore, the valuation of inventories has been identified as one of the key audit matters.

How the matter was addressed in our audit:

In relation to the key audit matter above, our principal audit procedures included reviewing the inventory of aging report and analyzing the fluctuation of inventory aging; selecting samples to verify the accuracy of the net realizable value of inventories and inventory aging report prepared by Qisda Corporation; evaluating whether valuation of inventories was accounted for in accordance with Qisda Corporation’ s accounting policies; and assessing the reasonableness of management’s accounting policies on inventory provisions.

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1. Assessment of impairment of goodwill from investments in subsidiaries

Please refer to Note 4(n) for the accounting policy on impairment of non-financial assets, Note 5(b) for the estimation uncertainty of impairment of goodwill, and Note 6(g) for the related disclosures of goodwill impairment test, respectively, to the parent-company-only financial statements.

Description of key audit matter:

Goodwill arising from acquisition of subsidiaries, which are included in the carrying amount of investments accounted for using the equity method, is subject to impairment test annually or at the time there are indications that goodwill may have been impaired. The assessment of the recoverable amount of goodwill involves management’s judgment and estimation. Accordingly, the assessment of impairment of goodwill has been identified as one of the key audit matters.

How the matter was addressed in our audit:

In relation to the key audit matter above, our principal audit procedures included obtaining the assessment of goodwill impairment provided by the management; assessing the appropriateness of the valuation model and key assumptions, including the discount rate, expected sales growth rate and future cash flow projections, used by the management in measuring the recoverable amount; performing a sensitivity analysis to assess the impact of variation in key assumptions; and assessing the adequacy of Qisda Corporation’s disclosures with respect to evaluation of goodwill impairment.

Other Matter

We did not audit the financial statements of certain investees accounted for using the equity method of Qisda Corporation. Those financial statements were audited by other auditors, whose reports have been furnished to us, and our opinion, insofar as it relates to the amounts included for those investees, is based solely on the report of other auditors. Those investments accounted for using the equity method amounted to NTD 1,554,960 thousand and NTD 2,221,412 thousand, respectively, constituting 1.55% and 2.27%, respectively, of the total assets as of December 31, 2023 and 2022, and the related shares of profit of subsidiaries amounted to NTD 48,820 thousand and NTD 369,922 thousand, respectively, constituting 1.64% and 4.41%, respectively, of the total income before income tax for the years ended December 31, 2023 and 2022.

Responsibilities of Management and Those Charged with Governance for the Parent-Company-Only Financial Statements

Management is responsible for the preparation and fair presentation of the parent-company-only financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and for such internal control as management determines is necessary to enable the preparation of parentcompany-only financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the parent-company-only financial statements, management is responsible for assessing Qisda Corporation’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate Qisda Corporation or to cease operations, or has no realistic alternative but to do so.

Those charged with governance (including the Audit Committee) are responsible for overseeing Qisda Corporation’s financial reporting process.

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Auditors’ Responsibilities for the Audit of the Parent-Company-Only Financial Statements

Our objectives are to obtain reasonable assurance about whether the parent-company-only financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Standards on Auditing of the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these parent-company-only financial statements.

As part of an audit in accordance with the Standards on Auditing of the Republic of China, we exercise professional judgment and professional skepticism throughout the audit. We also:

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

2. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of Qisda Corporation’s internal control.

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

4. Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on Qisda Corporation’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the parent-company-only financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause Qisda Corporation to cease to continue as a going concern.

5. Evaluate the overall presentation, structure and content of the parent-company-only financial statements, including the disclosures, and whether the parent-company-only financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

6. Obtain sufficient appropriate audit evidence regarding the financial information of the investees accounted for using the equity method to express an opinion on the parent-company-only financial statements. We are responsible for the direction, supervision and performance of the audit. We remain solely responsible for our audit opinion.

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

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

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

The engagement partners on the audit resulting in this independent auditors’ report are Chang, Huei-Chen and Shih, Wei-Ming.

KPMG

Taipei, Taiwan (Republic of China) March 5, 2024

Notes to Readers

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

The independent auditors’ audit report and the accompanying parent-company-only financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors’ audit report and parent-company-only financial statements, the Chinese version shall prevail.

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(English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese)

QISDA CORPORATION

Parent-Company-Only Balance Sheets December 31, 2023 and 2022

(Expressed in Thousands of New Taiwan Dollars)

Assets Current assets: 1100 Cash and cash equivalents (note 6(a)) 1110 Financial assets at fair value through profit or loss－current (note 6(b)) 1170 Notes and accounts receivable, net (notes 6(d) and (v)) 1181 Notes and accounts receivable from related parties (notes 6(d), (v) and 7) 1200 Other receivables (note 6(e)) 1210 Other receivables from related parties (notes 6(e) and 7) 130X Inventories (note 6(f)) 1470 Other current assets Total current assets Non-current assets: 1517 Financial assets at fair value through other comprehensive income －non-current (note 6(c)) 1550 Investments accounted for using the equity method (notes 6(g) and 8) 1600 Property, plant and equipment (notes 6(h), 7 and 8) 1755 Right-of-use assets (notes 6(i) and 7) 1760 Investment property (note 6(j)) 1780 Intangible assets (note 6(k)) 1840 Deferred income tax assets (note 6(s)) 1900 Other non-current assets 1980 Other financial assets－non-current Total non-current assets Total assets	December 31, 2023 Amount % $ 2,532,956 3 133,486 - 8,920,059 9 14,112,765 14 5,160 - 6,717 - 6,199,272 6 50,532 - 31,960,947 32 9,709,736 10 55,698,948 55 2,021,479 2 343,637 - 105,934 - 197,775 - 467,359 1 20,593 - 38,566 - 68,604,027 68 $ 100,564,974 100	December 31, 2022 Amount % 1,442,156 1 9,010 - 10,091,112 10 11,574,537 12 34,219 - 10,007 - 6,529,066 7 78,253 - 29,768,360 30 8,182,595 8 56,382,005 58 2,106,101 2 435,611 1 131,879 - 213,195 - 502,513 1 20,407 - 71,959 - 68,046,265 70 97,814,625 100 Liabilities and Equity Current liabilities: 2100 Short-term borrowings (note 6(l)) 2120 Financial liabilities at fair value through profit or loss－current (note 6(b)) 2130 Contract liabilities－current (note 6(v)) 2170 Notes and accounts payable 2180 Accounts payable to related parties (note 7) 2200 Other payables (note 6(w)) 2230 Current income tax liabilities 2322 Current portion of long-term debt (notes 6(m) and 8) 2280 Lease liabilities－current (notes 6(o) and 7) 2250 Provisions－current (note 6(p)) 2300 Other current liabilities 2365 Refund liabilities－current Total current liabilities Non-current liabilities: 2530 Bonds payable (note 6(n)) 2540 Long-term debt (notes 6(m) and 8) 2580 Lease liabilities－non-current (notes 6(o) and 7) 2550 Provisions－non-current (note 6(p)) 2570 Deferred income tax liabilities (note 6(s)) 2600 Other non-current liabilities (note 6(r)) Total non-current liabilities Total liabilities Equity (note 6(t)): 3110 Common stock 3200 Capital surplus 3300 Retained earnings 3400 Other equity Total equity Total liabilities and equity	December 31, 2023 Amount % $ 6,500,000 6 - - 781,653 1 1,757,130 2 24,571,162 24 2,400,945 2 107,814 - 525,193 1 139,704 - 16,426 - 70,427 - 1,489,929 2 38,360,383 38 2,996,090 3 21,405,611 21 370,048 1 82,994 - 15,548 - 276,942 - 25,147,233 25 63,507,616 63 19,667,820 19 1,983,975 2 18,793,317 19 (3,387,754) (3) 37,057,358 37 $ 100,564,974 100		December 31, 2022 Amount % 1,870,000 2 13,030 - 702,353 1 870,439 1 17,825,473 18 2,233,938 2 296,698 - 739,399 1 137,022 - 23,769 - 68,274 - 1,677,520 2 26,457,915 27 2,995,015 3 26,760,509 27 500,255 1 83,801 - - - 290,816 - 30,630,396 31 57,088,311 58 19,667,820 20 1,949,409 2 24,185,472 25 (5,076,387) (5) 40,726,314 42 97,814,625 100

See accompanying notes to parent-company-only financial statements.

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(English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese)

QISDA CORPORATION

Parent-Company-Only Statements of Comprehensive Income

For the years ended December 31, 2023 and 2022

(Expressed in Thousands of New Taiwan Dollars, Except for Earnings Per Share)

4000 Operating revenues (notes 6(v) and 7) 5000 Operating costs (notes 6(f), (h), (i), (j), (k), (o), (p), (r), (w), 7 and 12) Gross profit 5910 Realized (unrealized) gross profit on sales to subsidiaries, associated and joint ventures Realized or loss gross profit Operating expenses (notes 6(d), (h), (i), (j), (k), (o), (r), (w), 7 and 12): 6100 Selling expenses 6200 Administrative expenses 6300 Research and development expenses 6450 Gain on reversal of impairment loss (expected credit loss) Total operating expenses Operating income Non-operating income and loss: 7100 Interest income (note 6(x)) 7010 Other income (notes 6(o), (q), (x) and 7) 7020 Other gains and losses, net (notes 6(g) and (x)) 7050 Finance costs (notes 6(o), (x) and 7) 7375 Share of profits of subsidiaries, associates and joint ventures (note 6(g)) Total non-operating income and loss Income before income tax 7950 Income tax expense (note 6(s)) Net income Other comprehensive income (loss): 8310 Items that will not be reclassified subsequently to profit or loss 8311 Remeasurements of defined benefit plans (notes 6(r) and (t)) 8316 Unrealized gains (losses) from investments in equity instruments measured at fair value through other comprehensive income (note 6(t)) 8330 Share of other comprehensive income (loss) of subsidiaries, associates and joint ventures (notes 6(g) and (t)) 8349 Less: income tax related to items that will not be reclassified subsequently to profit or loss 8360 Items that may be reclassified subsequently to profit or loss 8361 Exchange differences on translation of foreign operations (note 6(t)) 8399 Less: income tax related to items that may be reclassified subsequently to profit or loss Other comprehensive income (loss) for the year, net of income tax Total comprehensive income for the year Earnings per share (in New Taiwan Dollars) (note 6(u)): 9750 Basic earnings per share 9850 Diluted earnings per share	2023	% 100 (95) 5 - 5 (2) (1) (3) - (6) (1) - 1 - (1) 5 5 4 - 4 - 2 1 - 3 - - - 3 7 1.51 1.51	2022 Amount 101,928,525 (96,586,328) 5,342,197 (414,630) 4,927,567 (1,353,193) (953,419) (2,464,509) (17,329) (4,788,450) 139,117 20,696 827,300 (586,496) (553,068) 8,538,228 8,246,660 8,385,777 (133,847) 8,251,930 127,921 (5,899,090) (980,562) - (6,751,731) 2,598,267 - 2,598,267 (4,153,464) 4,098,466	% 100 (95) 5 - 5 (1) (1) (3) - (5) - - 1 (1) - 8 8 8 - 8 - (6) (1) - (7) 3 - 3 (4) 4 4.20 4.14
	Amount $ 75,425,479 (71,847,173) 3,578,306 (37,090) 3,541,216 (1,175,798) (819,338) (2,267,941) 12,981 (4,250,096) (708,880) 99,692 598,674 284,821 (668,058) 3,375,451 3,690,580 2,981,700 (5,967) 2,975,733 1,840 1,466,613 674,731 - 2,143,184 (198,384) - (198,384) 1,944,800 $ 4,920,533 $ $

See accompanying notes to parent-company-only financial statements.

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(English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese)

QISDA CORPORATION

Parent-Company-Only Statements of Changes in Equity

For the years ended December 31, 2023 and 2022

(Expressed in Thousands of New Taiwan Dollars)

Balance at January 1, 2022 Net income in 2022 Other comprehensive income (loss) in 2022 Total comprehensive income (loss) in 2022 Appropriation of earnings: Legal reserve Reversal of special reserve Cash dividends to shareholders Share of changes in equity of subsidiaries, associates and joint ventures Difference between consideration and carrying amount arising from acquisition or disposal of shares of subsidiaries Disposal of equity instruments measured at fair value through other comprehensive income by investees Proceeds from disposal of forfeited employee stock managed by an employee ownership trust Balance at December 31, 2022 Net income in 2023 Other comprehensive income (loss) in 2023 Total comprehensive income (loss) in 2023 Appropriation of earnings: Legal reserve Special reserve Cash dividends to shareholders Share of changes in equity of subsidiaries, associates and joint ventures Difference between consideration and carrying amount arising from acquisition or disposal of shares of subsidiaries Disposal of equity instruments measured at fair value through other comprehensive income by investees Proceeds from disposal of forfeited employee stock managed by an employee ownership trust Claim for the disgorgement right Balance at December 31, 2023	Common stock $ 19,667,820 - - - - - - - - - - 19,667,820 - - - - - - - - - - - $ 19,667,820	Capital surplus 1,844,310 - - - - - - 101,703 - - 3,396 1,949,409 - - - - - - 30,238 1 - 4,252 75 1,983,975		Retained earnings	Retained earnings	Total retained earnings 20,777,515 8,251,930 - 8,251,930 - - (4,916,955) - (16,719) 89,701 - 24,185,472 2,975,733 - 2,975,733 - - (3,933,564) - (4,690,491) 256,167 - - 18,793,317		Total other equity	Total other equity	Total other equity (833,222) - (4,153,464) (4,153,464) - - - - - (89,701) - (5,076,387) - 1,944,800 1,944,800 - - - - - (256,167) - - (3,387,754)	Total equity 41,456,423 8,251,930 (4,153,464) 4,098,466 - - (4,916,955) 101,703 (16,719) - 3,396 40,726,314 2,975,733 1,944,800 4,920,533 - - (3,933,564) 30,238 (4,690,490) - 4,252 75 37,057,358
			Legal reserve 2,639,376 - - - 798,486 - - - - - - 3,437,862 - - - 832,491 - - - - - - - 4,270,353	Special reserve 1,264,645 - - - - (431,423) - - - - - 833,222 - - - - 4,243,165 - - - - - - 5,076,387	Unappropriated earnings 16,873,494 8,251,930 - 8,251,930 (798,486) 431,423 (4,916,955) - (16,719) 89,701 - 19,914,388 2,975,733 - 2,975,733 (832,491) (4,243,165) (3,933,564) - (4,690,491) 256,167 - - 9,446,577		Foreign currency translation differences (1,723,237) - 2,598,267 2,598,267 - - - - - - - 875,030 - (198,384) (198,384) - - - - - - - - 676,646	Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income 1,378,567 - (6,952,755) (6,952,755) - - - - - (89,701) - (5,663,889) - 2,138,796 2,138,796 - - - - - (256,167) - - (3,781,260)	Remeasurements of defined benefit plans (488,552) - 201,024 201,024 - - - - - - - (287,528) - 4,388 4,388 - - - - - - - - (283,140)

See accompanying notes to parent-company-only financial statements.

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(English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese)

QISDA CORPORATION

Parent-Company-Only Statements of Cash Flows

For the years ended December 31, 2023 and 2022

(Expressed in Thousands of New Taiwan Dollars)

2023 Cash flows from operating activities: Income before income tax $ 2,981,700 Adjustments for: Adjustments to reconcile profit or loss: Depreciation 323,585 Amortization 67,774 Expected credit loss (gain on reversal of impairment loss) (12,981) Interest expense 668,058 Interest income (99,692) Dividend income (437,858) Share of profit of subsidiaries, associates and joint ventures (3,375,451) Gain on disposal of property, plant and equipment (2,379) Gain on disposal of investments (273,124) Unrealized gross profit on sales to subsidiaries, associates and joint ventures 37,090 Total adjustments for profit or loss (3,104,978) Changes in operating assets and liabilities: Changes in operating assets: Financial assets at fair value through profit or loss (28,350) Notes and accounts receivable 1,184,034 Notes and accounts receivable from related parties (2,538,228) Other receivables 29,059 Other receivables from related parties 3,290 Inventories 329,794 Other current assets 36,329 Other non-current assets (9,701) Net changes in operating assets (993,773) Changes in operating liabilities: Financial liabilities at fair value through profit or loss (13,030) Notes and accounts payable 886,691 Accounts payable to related parties 6,745,689 Other payable to related parties - Provisions (8,150) Contract liabilities 79,300 Other payables and other current liabilities (660,335) Other non-current liabilities (12,034) Net changes in operating liabilities 7,018,131 Total changes in operating assets and liabilities 6,024,358 Total adjustments 2,919,380 Cash provided by (used in) operations 5,901,080 Interest received 99,692 Dividends received 8,441,851 Interest paid (653,640) Income taxes paid (144,149) Net cash provided by (used in) operating activities 13,644,834

2022 8,385,777 281,559 64,958 17,329 553,068 (20,696) (667,761) (8,538,228) (1,582) - 414,630 (7,896,723) (1,392) (2,772,906) 1,227,980 55,483 (5,828) (656,685) 10,895 - (2,142,453) (7,345) (637,887) (5,764,319) (725) 762 146,045 (64,687) (24,350) (6,352,506) (8,494,959) (16,391,682) (8,005,905) 20,696 3,934,787 (542,668) (45,305) (4,638,395)

See accompanying notes to parent-company-only financial statements.

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(English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese)

QISDA CORPORATION

Parent-Company-Only Statements of Cash Flows (Continued)

For the years ended December 31, 2023 and 2022

(Expressed in Thousands of New Taiwan Dollars)

2023 Cash flows from investing activities: Acquisition of financial assets at fair value through other comprehensive income $ (60,528) Proceeds from capital reduction of financial assets at fair value through other comprehensive income - Purchase of financial assets at fair value through profit or loss (96,126) Purchase of investments accounted for using equity method (7,613,201) Proceeds from capital reduction of investments accounted for using equity method - Proceeds from disposal of investments accounted for using equity method 348,803 Additions to property, plant and equipment (157,079) Proceeds from disposal of property, plant and equipment 3,259 Additions to intangible assets (15,906) Decrease in other financial assets 33,393 Net cash provided by (used in) investing activities (7,557,385) Cash flows from financing activities: Increase (decrease) in short-term borrowings 4,630,000 Increase in long-term debt 30,964,413 Repayments of long-term debt (36,524,399) Payment of lease liabilities (137,426) Cash dividends to shareholders (3,933,564) Proceeds from issuing bonds - Proceeds from disposal of forfeited employee stock managed by an employee ownership trust 4,252 Claim for the disgorgement right 75 Net cash provided by (used in) financing activities (4,996,649) Net increase in cash and cash equivalents 1,090,800 Cash and cash equivalents at beginning of year 1,442,156 Cash and cash equivalents at end of year $ 2,532,956

2022 (155,170) 1,327,197 - (796,210) 2,196,615 - (341,638) 2,014 (21,393) 204,941 2,416,356 (1,547,200) 24,190,000 (17,728,282) (125,831) (4,916,955) 2,994,473 3,396 - 2,869,601 647,562 794,594 1,442,156

See accompanying notes to parent-company-only financial statements.

8

(English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese)

QISDA CORPORATION

Notes to the Parent-Company-Only Financial Statements For the years ended December 31, 2023 and 2022

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

1. Organization and business

Qisda Corporation (the “Company”) was incorporated on April 21, 1984, as a company limited by shares under the laws of the Republic of China (“ R.O.C.” ) and registered under the Ministry of Economic Affairs, R.O.C. The address of the Company’ s registered office is No. 157, Shan-Ying Rd., Gueishan Dist., Taoyuan City, Taiwan. The Company is engaged in the manufacturing, sales and services of highend monitors and opto-mechatronics products.

2. Authorization of the parent-company-only financial statements

These parent-company-only financial statements were authorized for issuance by the Board of Directors on March 5, 2024.

3. Application of new and revised accounting standards and interpretations

• (a) The impact of the International Financial Reporting Standards (“IFRSs”) endorsed by the Financial Supervisory Commission, R.O.C. (“FSC”) which have already been adopted.

The Company has initially adopted the following new amendments, which do not have a significant impact on its parent-company-only financial statements, from January 1, 2023:

• ●Amendments to IAS 1 “Disclosure of Accounting Policies”

• ●Amendments to IAS 8 “Definition of Accounting Estimates”

• ●Amendments to IAS 12 “ Deferred Tax related to Assets and Liabilities arising from a Single Transaction”

The Company has initially adopted the following new amendments, which do not have a significant impact on its parent-company-only financial statements, from May 23, 2023:

• －

• ●Amendments to IAS 12 “International Tax Reform Pillar Two Model Rules”

• (b) The impact of IFRS endorsed by the FSC but not yet effective

The Company assesses that the adoption of the following new amendments, effective January 1, 2024, would not have a significant impact on its parent-company-only financial statements:

• ●Amendments to IAS 1 “Classification of Liabilities as Current or Non-current”

• ●Amendments to IAS 1 “Non-current Liabilities with Covenants”

• ●Amendments to IAS 7 and IFRS 7 “Supplier Finance Arrangements”

• ●Amendments to IFRS 16 “Lease Liability in a Sale and Leaseback”

(Continued)

9

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

• (c) The impact of IFRS issued by IASB but not yet endorsed by the FSC

The Company does not expect the following new and amended standards, which have yet to be endorsed by the FSC, to have a significant impact on its parent-company-only financial statements:

• ●Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets Between an Investor and its Associate or Joint Venture”

• ●IFRS 17 “Insurance Contracts” and amendments to IFRS 17 “Insurance Contracts”

• ●Amendments to IFRS 17 “Initial Application of IFRS 17 and IFRS 9 – Comparative Information”

• ●Amendments to IAS 21 “Lack of Exchangeability”

4. Summary of material accounting policies:

The material accounting policies presented in the parent-company-only financial statements are summarized as follows and have applied consistently to all periods presented in these financial statements.

• (a) Statement of compliance

The Company’ s accompanying parent-company-only financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers (the “Regulations”).

• (b) Basis of preparation

• (i) Basis of measurement

The accompanying parent-company-only financial statements have been prepared on a historical cost basis except for the following items:

• 1) Financial instruments measured at fair value through profit or loss (including derivative financial instruments);

• 2) Financial assets measured at fair value through other comprehensive income; and

• 3) Net defined benefit liabilities (assets) measured at recognized as the present value of the defined benefit obligation less the fair value of the plan assets.

(ii) Functional and presentation currency

The functional currency of the Company is determined based on the primary economic environment in which the Company operates. The Company’s parent-company-only financial statements are presented in New Taiwan dollars, which is the Company’s functional currency. Except when otherwise indicated, all financial information presented in New Taiwan dollars has been rounded to the nearest thousand.

(Continued)

10

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

(c) Foreign currency

(i) Foreign currency transactions

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. At the end of each reporting period (“ the reporting date” ), monetary items denominated in foreign currencies are translated into the functional currencies using the exchange rate at that date. Non-monetary items denominated in foreign currencies that are measured at fair value are translated into the functional currencies using the exchange rate at the date that the fair value was determined. Non-monetary items denominated in foreign currencies that are measured at historical cost are translated using the exchange rate at the date of the transaction.

Exchange differences are generally recognized in profit or loss, except for an investment in equity securities designated as at fair value through other comprehensive income, which are recognized in other comprehensive income.

(ii) Foreign operations

The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising from acquisition, are translated into the presentation currency of the Company’s parentcompany-only financial statements at the exchange rates at the reporting date. The income and expenses of foreign operations are translated into the presentation currency of the Company’s parent-company-only financial statements at the average exchange rates for the period. All resulting exchange differences are recognized in other comprehensive income.

When a foreign operation is disposed of such that control, joint control, or significant influence is lost, the accumulated exchange differences related to that foreign operation is reclassified to profit or loss. In the case of a partial disposal that does not result in the Company losing control over a subsidiary, the proportionate share of the accumulated exchange differences is reclassified to non-controlling interests. For a partial disposal of the Company’s ownership interest in an associate or joint venture, the proportionate share of the accumulated exchange differences in equity is reclassified to profit or loss.

When the settlement of a monetary receivable from or payable to a foreign operation is neither planned nor likely to occur in the foreseeable future, the monetary item is, in substance, a part of net investment in that foreign operation, and the related foreign exchange gains and losses thereon are recognized as other comprehensive income.

(d) Classification of current and non-current assets and liabilities

An asset is classified as current when one of following criteria is met; all other assets are classified as non-current assets.

• (i) It is expected to be realized, or intended to be sold or consumed in the normal operating cycle;

• (ii) It is held primarily for the purpose of trading;

• (iii) It is expected to be realized within twelve months after the reporting period; or

• (iv) The asset is cash or a cash equivalent unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

(Continued)

11

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

A liability is classified as current when one of following criteria is met; all other liabilities are classified as non-current liabilities:

• (i) It is expected to be settled in the normal operating cycle;

• (ii) It is held primarily for the purpose of trading;

• (iii) It is due to be settled within twelve months after the reporting period; or

• (iv) The Company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting period. Terms of a liability that could, at the option of the counterparty, result in its settlement by issuing equity instruments do not affect its classification.

(e) Cash and cash equivalents

Cash consists of cash on hand, checking deposits, and demand deposits. Cash equivalents consist of short-term and highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value. Time deposits that meet the aforesaid criteria and are not held for investing purposes are also classified as cash equivalents.

Bank overdrafts that are repayable on demand and form an integral part of the Company’ s cash management are included as a component of cash and cash equivalents for the purpose of the statement of cash flows.

(f) Financial instruments

Accounts receivable and debt securities issued are initially recognized when they are originated. All other financial assets and financial liabilities are initially recognized when the Company becomes a party to the contractual provisions of the instrument. A financial asset (unless it is an accounts receivable without a significant financing component) or financial liability is initially measured at fair value plus, for an item not at fair value through profit or loss (FVTPL), transaction costs that are directly attributable to its acquisition or issuance. An accounts receivable without a significant financing component is initially measured at the transaction price.

(i) Financial assets

On initial recognition, financial assets are classified as measured at: amortized cost, fair value through other comprehensive income (FVOCI) and fair value through profit or loss (FVTPL). A regular way purchases or sales of financial assets is recognized or derecognized on a tradedate basis.

Financial assets are not reclassified subsequent to their initial recognition unless the Company changes its business model for managing its financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model.

(Continued)

12

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

• 1) Financial assets measured at amortized cost

A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as at FVTPL:

• it is held within a business model whose objective is to hold financial assets to collect contractual cash flows; and

• its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

Subsequent to initial recognition, these assets are measured at amortized cost, using the effective interest method less impairment loss. Interest income, foreign exchange gains and losses, and recognition (reversal) of impairment loss are recognized in profit or loss. Any gain or loss on derecognition is recognized in profit or loss.

• 2) Financial assets measured at fair value through other comprehensive income

A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL:

• it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and

• its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

On initial recognition of an equity investment that is not held for trading, the Company may irrevocably elect to present the subsequent changes in the investment’s fair value in other comprehensive income. This election is made on an instrument-by-instrument basis.

Debt investments at FVOCI are subsequently measured at fair value. Interest income calculated using the effective interest method, foreign exchange gains and losses and impairment loss are recognized in profit or loss. Other net gains and losses are recognized in other comprehensive income. On derecognition, other comprehensive income accumulated in equity are reclassified to profit or loss.

Equity investments at FVOCI are subsequently measured at fair value. Dividends are recognized as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognized in other comprehensive income. On derecognition, other comprehensive income accumulated in equity is reclassified to retained earnings and is never reclassified to profit or loss.

Dividend income derived from equity investments is recognized on the date that the Company’s right to receive the dividends is established (usually the ex-dividend date).

(Continued)

13

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

• 3) Financial assets measured at fair value through profit or loss

All financial assets not classified as measured at amortized cost or at FVOCI described as above are measured at FVTPL, including derivative financial assets. On initial recognition, the Company may irrevocably designate a financial asset, which meets the requirements to be measured at amortized cost or at FVOCI, as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

These assets are subsequently measured at fair value. Net gains and losses, including any dividend and interest income, are recognized in profit or loss.

• 4) Business model assessment

The Company makes an assessment of the objective of the business model in which a financial asset is held at portfolio level because this best reflects the way the business is managed and information is provided to management. The information considered includes:

• the stated policies and objectives for the portfolio and the operation of those policies in practice. These include whether management’ s strategy focuses on earning contractual interest income, maintaining a particular interest rate profile, matching the duration of the financial assets to the duration of any related liabilities or expected cash outflows or realizing cash flows through the sale of the assets;

• how the performance of the portfolio is evaluated and reported to the Company’s management;

• the risks that affect the performance of the business model (and the financial assets held within that business model) and how those risks are managed;

• how managers of the business are compensated ─ e.g. whether compensation is based on the fair value of the assets managed or the contractual cash flows collected; and

• the frequency, volume and timing of sales of financial assets in prior periods, the reasons for such sales and expectations about future sales activity.

Transfers of financial assets to third parties in transactions that do not qualify for derecognition are not considered sales for this purpose, and are consistent with the Company’s continuing recognition of the assets.

• 5) Assessment of whether contractual cash flows are solely payments of principal and interest

For the purposes of this assessment, “ principal” is defined as the fair value of the financial assets on initial recognition. “Interest” is defined as consideration for the time value of money and for the credit risk associated with the principal amount outstanding during a particular period of time and for other basic lending risks and costs, as well as a profit margin.

(Continued)

14

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

In assessing whether the contractual cash flows are solely payments of principal and interest, the Company considers the contractual terms of the instrument. This includes assessing whether the financial asset contains a contractual term that could change the timing or amount of contractual cash flows such that it would not meet this condition. In making this assessment, the Company considers:

• contingent events that would change the amount or timing of cash flows;

• terms that may adjust the contractual coupon rate, including variable rate features;

• prepayment and extension features; and

• terms that limit the Company’ s claim to cash flows from specified assets (e.g. non-recourse features)

• 6) Impairment of financial assets

The Company recognizes loss allowances for expected credit losses (“ECL”) on financial assets measured at amortized cost (including cash and cash equivalents, notes and accounts receivable, other receivables and other financial assets).

The Company measures loss allowances at an amount equal to lifetime ECL, except for the following financial assets which are measured using 12-month ECL:

• bank balances for which credit risk (i.e. the risk of default occurring over the expected life of the financial instrument) has not increased significantly since initial recognition.

The Company measures loss allowances for accounts receivable at an amount equal to lifetime ECL.

Lifetime ECLs are the ECLs that result from all possible default events over the expected life of a financial instrument. 12-month ECLs are the portion of ECLs that result from default events that are possible within the 12 months after the reporting date (or a shorter period if the expected life of the instrument is less than 12 months).

The maximum period considered when estimating ECLs is the maximum contractual period over which the Company is exposed to credit risk.

When determining whether the credit risk of a financial asset has increased significantly since initial recognition, the Company considers reasonable and supportable information that is relevant and available without undue cost or effort. The information includes both quantitative and qualitative information and analysis based on the Company’s historical experience and credit assessment, as well as forward-looking information.

ECLs are probability-weighted estimate of credit losses over the expected life of financial assets. Credit losses are measured as the present value of all cash shortfalls (i.e. the difference between the cash flows due to the Company in accordance with the contract and the cash flows that the Company expects to receive). ECLs are discounted at the effective interest rate of the financial asset.

(Continued)

15

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

Loss allowances for financial assets measured at amortized cost are deducted from the gross carrying amount of the assets.

The gross carrying amount of a financial asset is written off when the Company has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof. The Company individually makes an assessment with respect to the timing and amount of write-off based on whether there is a reasonable expectation of recovery. The Company expects no significant recovery from the amount written off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with the Company’s procedures for recovery of amounts due.

7)

Derecognition of financial assets

The Company derecognizes a financial asset when the contractual rights of the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset.

The Company enters into transactions whereby it transfers assets recognized in its balance sheet, but retains either all or substantially all of the risks and rewards of the transferred assets; in these cases, the transferred assets are not derecognized.

• (ii) Financial liabilities and equity instruments

• 1) Classification of debt or equity

Debt and equity instruments issued by the Company are classified as financial liabilities or equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument. An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities. Equity instruments are recognized at the amount of consideration received, less, the direct issuing cost.

2) Financial liabilities

Financial liabilities are classified as measured at amortized cost or FVTPL. A financial liability is classified as at FVTPL if it is held for trading, it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognized in profit or loss.

Financial liabilities measured at amortized cost are subsequently measured at amortized cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognized in profit or loss. Any gain or loss on derecognition is also recognized in profit or loss.

(Continued)

16

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

• 3) Derecognition of financial liabilities

The Company derecognizes a financial liability when its contractual obligation has been fulfilled or cancelled, or has expired. The Company also derecognizes a financial liability when its terms are modified and the cash flows of the modified liability are substantially different, in which case a new financial liability based on the modified terms is recognized at fair value.

The difference between the carrying amount of a financial liability derecognized and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognized in profit or loss.

• 4) Offsetting of financial assets and liabilities

Financial assets and liabilities are presented on a net basis only when the Company has the legally enforceable right to offset and intends to settle such financial assets and liabilities on a net basis or to realize the assets and settle the liabilities simultaneously.

• (iii) Derivative financial instruments

The Company uses derivative financial instruments are held to hedge the Company’s foreign currency exposures. Derivatives are initially measured at fair value and attributable transaction costs are recognized in profit or loss as incurred. Subsequent to initial recognition, derivatives are measured at fair value, and changes therein are recognized in profit or loss, and are included in non-operating income and loss. If the valuation of a derivative instrument is in a positive fair value, it is classified as a financial asset, otherwise, it is classified as a financial liability.

(g) Inventories

Inventories are measured at the lower of cost and net realizable value. The cost of inventories is calculated based on the weighted-average method and includes expenditure incurred in acquiring the inventories, production or conversion costs, and other costs incurred in bringing them to the location and condition ready for sale. Fixed manufacturing overhead is allocated to finished products and work in process based on the higher of normal capacity or actual capacity; variable manufacturing overhead is allocated based on the actual capacity of machinery and equipment. Net realizable value represents the estimated selling price in the ordinary course of business, less, all estimated costs of completion and necessary selling expenses.

• (h) Investment in associates

Associates are those entities in which the Company has significant influence, but not control or jointly control, over the financial and operating policies.

Investments in associates are accounted for using the equity method and are recognized initially at cost, plus, any transaction costs. The carrying amount of the investment in associates includes goodwill identified on acquisition, net of any accumulated impairment losses. When necessary, the entire carrying amount of the investment (including goodwill) will be tested for impairment as a single asset by comparing its recoverable amount with its carrying amount. Any impairment loss recognized forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognized to the extent that the recoverable amount of the investment subsequently increases.

(Continued)

17

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

The Company’s share of its associates’ post-acquisition profits or losses is recognized in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognized as other comprehensive income with a corresponding adjustment to the carrying amount of the investment. When changes in an associate’ s equity are not recognized in profit or loss or other comprehensive income of the associate, and such changes do not affect the Company’s ownership percentage of the associate, the Company recognizes the change in ownership interests of its associate as “capital surplus” in proportion to its ownership.

Unrealized gains and losses resulting from transactions between the Company and an associate are recognized only to the extent of unrelated investors’ interests in the associate.

Adjustments are made to associates’ financial statements to conform to the accounting polices applied by the Company.

When the Company’s share of losses in an associate equals or exceeds its interest in the associate, the recognition of further losses is discontinued. Additional losses are provided for, and a liability is recognized, only to the extent that the Company has incurred legal or constructive obligations or made payments on behalf of the associate.

When an associate issues new shares and the Company does not subscribe to the new shares in proportion to its original ownership percentage, the Company’s interest in the associate’s net assets will be changed. The change in the equity interest is adjusted through the capital surplus and investment accounts. If the Company’ s capital surplus is insufficient to offset the adjustment to investment accounts, the difference is charged as a reduction of retained earnings. If the Company’s interest in an associate is reduced due to the additional subscription to the shares of associate by other investors, the proportionate amount of the gains or losses previously recognized in other comprehensive income in relation to that associate will be reclassified to profit or loss on the same basis as would be required if the associate had directly disposed of the related assets or liabilities.

(i) Investment in subsidiaries

When preparing the parent-company-only financial statements, investment in subsidiaries which are controlled by the Company is accounted for using the equity method. Under equity method, profit or loss, and other comprehensive income recognized in parent-company-only financial statement is in line with total comprehensive income attributable to the shareholders of the Company in the consolidated financial statements. In addition, changes in equity recognized in the parent-companyonly financial statements is in line with the changes in equity attributable to shareholders of the Company in the consolidated financial statements.

Changes in a parent’s ownership interest in a subsidiary that do not result in the loss of control as accounted for within equity.

(Continued)

18

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

(j) Investment property

Investment property is property held either to earn rental income or for capital appreciation or for both. Investment property is measured at cost on initial recognition. Subsequent to initial recognition, investment property is measured at initial acquisition cost less accumulated depreciation and accumulated impairment losses. The methods for depreciating and determining the useful life and residual value of investment property are the same as those adopted for property, plant and equipment. Cost includes expenditure that is directly attributable to the acquisition of the investment property, bringing the investment property to the condition necessary for it to be available for use, and any borrowing cost that is eligible for capitalization.

Any gain or loss on disposal of an investment property (calculated as the difference between the net proceeds from disposal and the carrying amount) is recognized in profit or loss.

Rental income from investment property is recognized on a straight-line basis over the term of the lease. Lease incentives granted are recognized as an integral part of the total rental income, over the term of the lease.

An investment property is reclassified to property, plant and equipment at its carrying amount when the purpose of the investment property has been changed from investment to owner-occupied.

• (k) Property, plant and equipment

• (i) Recognition and measurement

Property, plant and equipment are measured at cost, which includes capitalized borrowing costs, less, accumulated depreciation and any accumulated impairment losses.

If significant parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.

Any gain or loss on disposal of property, plant and equipment is recognized in profit or loss.

• (ii) Subsequent expenditure

Subsequent expenditure is capitalized only if it is probable that the future economic benefits associated with the expenditure will flow to the Company.

• (iii) Depreciation

Depreciation is calculated on the cost of assets less their residual values and is recognized in profit or loss on a straight-line basis over the estimated useful lives of each component of an item of property, plant and equipment.

Land is not depreciated. The estimated useful lives for property, plant and equipment are as follows: buildings: 5 to 55 years; machinery and equipment: 2 to 10 years; furniture and fixtures: 3 years; and other equipment: 3 to 10 years.

Depreciation methods, useful lives, and residual values are reviewed at each reporting date, with the effect of any changes in estimate accounted for on a prospective basis.

(Continued)

19

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

(l) Leases

At inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

• (i) As a lessee

The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. In addition, the right-of-use asset is periodically evaluated and reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be reliably determined, the Company’s incremental borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate.

Lease payments included in the measurement of the lease liability comprise the following:

• － fixed payments, including in-substance fixed payments;

• － variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date.

• － amounts expected to be payable under a residual value guarantee; and

• － payments for purchase or termination options that are reasonably certain to be exercised.

The lease liability is subsequently measured at amortized cost using the effective interest method. It is remeasured when:

• － there is a change in future lease payments arising from the change in an index or rate; or

• － there is a change in the Company’s estimate of the amount expected to be payable under a residual value guarantee; or

• － there is a change of the Company’s assessment on whether it will exercise an option to purchase the underlying asset; or

• － there is a change in the lease term resulting from a change of the Company’s assessment on whether it will exercise an extension or termination option; or

• － there is any lease modification in lease subject, scope of the lease or other terms.

(Continued)

20

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

When the lease liability is remeasured, other than lease modifications, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or in profit and loss if the carrying amount of the right-of-use asset has been reduced to zero.

When the lease liability is remeasured to reflect the partial or full termination of the lease for lease modifications that decrease the scope of the lease, the Company accounts for the remeasurement of the lease liability by decreasing the carrying amount of the right-of-use asset to reflect the partial or full termination of the lease, and recognize the difference in profit or loss for any gain or loss relating to the partial or full termination of the lease.

The Company presents right-of-use assets that do not meet the definition of investment properties, and lease liabilities as a separate line item respectively in the balance sheets.

The Company has elected not to recognize right-of-use assets and lease liabilities for leases that have a lease term of 12 months or less and leases of low-value assets. The Company recognizes the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

(ii) As a lessor

When the Company acts as a lessor, it determines at lease commencement whether each lease is a finance lease or an operating lease. To classify each lease, the Company makes an overall assessment of whether the lease transfers to the lessee substantially all of the risks and rewards incidental to ownership of the underlying asset. If this is the case, then the lease is a finance lease; if not, then the lease is an operating lease. As part of this assessment, the Company considers certain indicators such as whether the lease is for the major part of the economic life of the asset.

When the Company is an intermediate lessor, it accounts for its interests in the head lease and the sub-lease separately. It assesses the lease classification of a sub-lease with reference to the right-of-use asset arising from the head lease. If a head lease is a short-term lease to which the Company applies the exemption described above, then it classifies the sub-lease as an operating lease.

For operating lease, the Company recognizes rental income on a straight-line basis over the lease term.

(m) Intangible assets

Intangible assets including acquired software, and patents are carried at cost, less accumulated amortization and accumulated impairment losses. Amortization is recognized in profit or loss using the straight-line method over the estimated useful lives of 2 to 5 years.

The residual value, amortization period, and amortization method are reviewed at least at each reporting date, with the effect of any changes in estimate accounted for on a prospective basis.

(Continued)

21

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

(n) Impairment of non-financial assets

The Company assesses at the end of each reporting date whether there is any indication that the carrying amounts of non-financial assets (other than inventories and deferred tax assets) may be impaired. If any such indication exists, then the asset’s recoverable amount is estimated. Goodwill is tested annually or when there are indications of impairment.

For the purpose of impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows from other assets or groups of assets. Goodwill arising from a business combination is allocated to cash-generating units (“CGUs”) or groups of CGUs that are expected to benefit from the synergies of the combination.

The recoverable amount of an individual asset or CGU is the higher of its value in use and its fair value less costs to sell. Value in use is based on the estimated future cash flows, discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU.

An impairment loss is recognized if the carrying amount of an asset or CGU exceeds its recoverable amount. Impairment losses are recognized in profit or loss. They are allocated first to reduce the carrying amount of any goodwill allocated to the CGU, and then to reduce the carrying amounts of the other assets in the CGU on a pro rata basis.

An impairment loss in respect of goodwill is not reversed. For other non-financial assets, an impairment loss is reversed only to the extent that the asset’s carrying amount that would have been determined (net of depreciation or amortization) had no impairment loss been recognized for the assets in prior years.

(o) Provisions

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

A provision for warranties is recognized when the underlying products or services are sold. This provision reflects the historical warranty claim rate and the weighting of all possible outcomes against their associated probabilities.

(p) Revenue recognition

Revenue is measured based on the consideration to which the Company expects to be entitled in exchange for transferring goods or services to a customer. The Company recognizes revenue when it satisfies a performance obligation by transferring control of a good or a service to a customer. The accounting policies for the Company’s main types of revenue are explained below.

(Continued)

22

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

(i) Sale of goods

The Company recognizes revenue when control of the goods has been transferred to the customer, being when the goods are delivered to the customer, and there is no unfulfilled obligation that could affect the customer’s acceptance of the goods. Delivery occurs when the goods have been shipped to the specific location, and either the customer has accepted the goods in accordance with the terms of sales, the risks of obsolescence and loss have been transferred to the customer, and the Company has objective evidence that all criteria for acceptance have been satisfied. Sales discount and rebates are recognized and estimated based on historical experience and each contractual term. Revenue is only recognized to the extent that it is highly probable that a significant reversal will not occur. A refund liability is recognized for expected sales discounts and rebate payables to customers in relation to sales made until the end of the reporting period. No element of financing is deemed present as the sales are made with a credit term ranging from 30 to 120 days, which is consistent with the market practice.

The Company’ s obligation to provide a refund for faulty goods sold under the standard warranty terms is recognized as a provision for warranty; please refer to note 6(p).

A receivable is recognized when the goods are delivered, as this is the point in time that the Company has a right to an amount of consideration that is unconditional.

(ii) Rendering of services

The Company’ s revenue from providing product design and development services is recognized in the accounting period in which services are rendered.

• (iii) Financing components

The Company does not expect to have any contracts where the period between the transfer of the promised goods or services to the customer, and the payment by the customer, exceeds one year. As a consequence, the Company does not adjust any of the transaction prices for the time value of money.

(q) Government grants

A government grant is recognized in profit or loss only when there is reasonable assurance that the Company will comply with the conditions associated with the grant and that the grant will be received.

A government grant is recognized in profit or loss in the period in which it becomes receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the Company without future related costs.

Loans from financial institutions with a guarantee from the government are recognized at fair value using the market interest rate. The difference between the fair value of the loan and the amount received is recorded as deferred income and recognized in non-operating income-other income on a systematic basis over the period of the loan.

(Continued)

23

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

(r) Employee benefits

(i) Defined contribution plans

Obligations for contributions to defined contribution pension plans are expensed during the year in which employees render services.

(ii) Defined benefit plans

The liability recognized in respect of defined benefit pension plans is the present value of the defined benefit obligation at the reporting date, less, the fair value of plan assets. The discount rate for calculating the present value of the defined benefit obligation refers to the interest rate of high-quality government bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating the term of the related pension obligation. The defined benefit obligation is calculated annually by qualified actuaries using the projected unit credit method.

When the benefits of a plan are improved, the expense related to the increased obligations resulting from the services rendered by employees in the past years are recognized in profit or loss immediately.

The remeasurements of the net defined benefit liability (asset) comprise 1) actuarial gains and losses; 2) return on plan assets, excluding amounts included in net interest on the net defined benefit liability (asset); and 3) any change in the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability (asset). The remeasurements of the net defined benefit liabilities (asset) are recognized in other comprehensive income and then transferred to other equity.

The Company recognizes gains or losses on the curtailment or settlement of a defined benefit plan when the curtailment or settlement occurs. The gain or loss on curtailment or settlement comprises any resulting change in the fair value of plan assets and any change in the present value of the defined benefit obligation.

(iii) Short-term employee benefits

Short-term employee benefit obligations are measured on an undiscounted basis and are expensed during the period in which employees render services. A liability is recognized for the amount expected to be paid under short-term cash bonus or profit-sharing plans if the Company has a present legal or constructive obligation to make such payments as a result of past service provided by the employees, and the obligation can be estimated reliably.

(s) Income taxes

Income taxes comprise current taxes and deferred taxes. Current and deferred taxes are recognized in profit or loss unless they relate to business combinations or items recognized directly in equity or other comprehensive income.

Current taxes comprise the expected tax payable or receivables on the taxable profits (losses) for the year and any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax payables or receivables are the best estimate of the tax amount expected to be paid or received that reflects uncertainty related to income taxes, if any. It is measured using tax rates enacted or substantively enacted at the reporting date.

(Continued)

24

QISDA CORPORATION

Notes to the Parent-Company-Only Financial Statements

Deferred income taxes are recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred taxes are not recognized for:

• (i) Temporary differences on the initial recognition of assets and liabilities in a transaction that is not a business combination and at the time of the transaction 1) affects neither accounting nor taxable profits (losses) and 2) does not give rise to equal taxable and deductible temporary differences;

• (ii) Temporary differences related to investments in subsidiaries, associates and joint arrangements to the extent that the Company is able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future; and

(iii) Taxable temporary differences arising on the initial recognition of goodwill.

Deferred tax assets are recognized for unused tax losses, tax credits, and deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they can be utilized. Deferred tax assets are reviewed at each reporting date and reduced to the extent that it is no longer probable that the related tax benefit will be realized; such reductions are reversed when the probability of future taxable profits improves.

Deferred taxes are measured at tax rates that are expected to be applied to temporary differences when they reserve, using tax rates enacted or substantively enacted at the reporting date, and reflect uncertainty related to income taxes, if any.

Deferred tax assets and liabilities are offset if the following criteria are met:

• (i) the Company has a legally enforceable right to set off current tax assets against current tax liabilities; and

• (ii) the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority on either:

• 1) the same taxable entity; or

• 2) different taxable entities which intend to settle current tax assets and liabilities on a net basis, or to realize the assets and liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.

(t)

Business combinations

The Company uses acquisition method for acquisitions of new subsidiaries. Goodwill is measured as the excess of the acquisition-date fair value of the consideration transferred (including any noncontrolling interest in the acquiree) over the net of the acquisition-date amounts of the identifiable assets acquired and liabilities assumed (generally at fair value). If the residual balance is negative, the Company shall re-assess whether it has correctly identified all of the assets acquired and liabilities assumed and record any additional assets or liabilities that are identified in that review, and shall recognize a gain on the bargain purchase thereafter.

(Continued)

25

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

Acquisition-related costs are expensed as incurred except for the costs related to issuance of debt or equity instruments.

In a business combination achieved in stages, the Company shall re-measure its previously held equity interest in the acquiree at its acquisition-date fair value and recognize the resulting gain or loss in profit or loss. The amount previously recognized in other comprehensive income in relation to the changes in the value of the Company’s equity interest should be reclassified to profit or loss on the same basis as would be required if the Company had disposed directly of the previously held equity interest.

If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the provisional amounts for the items for which the accounting is incomplete are reported in the financial statements. During the measurement period, the provisional amounts recognized at the acquisition date are retrospectively adjusted to reflect new information obtained about facts and circumstances that existed as of the acquisition date. The measurement period shall not exceed one year from the acquisition date.

Contingent consideration as part of the consideration transferred is measured at the acquisition date fair value. Any fluctuation of the fair value during the measurement period after acquisition date is retrospectively adjusted to the acquisition cost and goodwill. The adjustments are to reflect new information obtained about facts and circumstances that existed as of the acquisition date. The measurement period shall not exceed one year from the acquisition date. For the fair value adjustments of the contingent consideration that occurred not during the measurement period, the accounting treatment will be based on the classification of contingent consideration. Contingent consideration classified as equity cannot be re-measured and has to be adjusted under owner’ s equity. Other contingent consideration should be subsequently measured at fair value at the end of each reporting period, and recognized in profit or loss.

(u) Earnings per share (“EPS”)

The basic and diluted EPS attributable to stockholders of the Company are disclosed in the financial statements. Basic EPS is calculated by dividing net income attributable to stockholders of the Company by the weighted-average number of common shares outstanding during the year. In calculating diluted EPS, the net income attributable to stockholders of the Company and weightedaverage number of common shares outstanding during the year are adjusted for the effects of dilutive potential common shares. The Company’s dilutive potential common shares are profit sharing for employees to be settled in the form of common stock.

(v) Operating segments

The Company discloses the operating segment information in the consolidated financial statements. Therefore, the Company does not disclose the operating segment information in the parent-companyonly financial statements.

(Continued)

26

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

5. Critical accounting judgments and key sources of estimation uncertainty

The preparation of the parent-company-only financial statements in conformity with the Regulations Governing the Preparation of Financial Reports requires management to make judgments, estimates, and assumptions that affect the application of the accounting policies and the reported amount of assets, liabilities, income and expenses. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and the future periods affected.

Information about judgments made in applying the accounting policies that have significant effects on the amounts recognized in the parent-company-only financial statements is as follows:

Judgment regarding whether the Company has substantial control over the investee. Please refer to consolidated financial statements for the year ended December 31, 2023.

Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment within the next financial year is included as follows:

(a) Valuation of inventories

Inventories are measured at the lower of cost and net realizable value. Due to the rapid technological innovations and highly competitive environments in the electronic industry, the life cycle of certain products of the Company are short and their market prices fluctuate rapidly, which could possibly result in a price decline and obsolescence of inventory, wherein the inventory cost may exceed its net realizable value. The net realizable value of the inventory is mainly determined based on assumption of future demand within a specific time horizon, which could result in significant adjustments.

(b) Assessment of impairment of goodwill from investments in subsidiaries

The assessment of impairment of goodwill requires the Company to make subjective judgments to identify cash-generating units, allocate the goodwill to relevant cash-generating units, and estimate the recoverable amount of relevant cash-generating units. Any changes in these estimates based on changed economic conditions or business strategies could result in significant adjustments in future years.

6. Significant account disclosures

(a) Cash and cash equivalents

Demand deposits and checking accounts Foreign currency deposits	December 31, 2023 $ 180,482 2,352,474 $ 2,532,956	December 31, 2022
		372,223 1,069,933
		1,442,156

(Continued)

27

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

(b) Financial instruments measured at fair value through profit or loss

Financial assets at fair value through profit or loss－current: Foreign currency forward contracts Foreign exchange swaps Privately held equity securities Financial liabilities at fair value through profit or loss－current: Foreign exchange swaps	December 31, 2023 $ 37,360 - 96,126 $ 133,486 $ -	December 31, 2022
		8,276 734 -
		9,010
		13,030

Please refer to note 6(x) for the amounts of gain (loss) recognized related to financial assets measured at fair value.

The Company entered into derivative contracts to manage foreign currency exchange risk resulting from its operating and financing activities. As of December 31, 2023 and 2022, the outstanding derivative financial instruments did not conform to the criteria for hedge accounting consisted of the following:

• (i) Foreign currency forward contracts

CNY Buy/ USD Sell MYR Buy/ USD Sell (ii) Foreign exchange swaps NTD Buy/ USD Sell	December 31, 2023
	Contract amount (in thousands) Maturity period USD 46,550 2024/01~2024/02 December 31, 2022
	Contract amount (in thousands) Maturity period MYR 41,000 2023/01~2023/02 December 31, 2022
	Contract amount (in thousands) Maturity period USD 160,000 2023/03

(Continued)

28

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

• －

• (c) Financial assets at fair value through other comprehensive income non-current

Equity investments at fair value through other comprehensive income: Domestic listed stocks Privately held equity securities	December 31, 2023 $ 9,707,602 2,134 $ 9,709,736	December 31, 2022
		8,027,425 155,170
		8,182,595

The Company designated the equity investments shown above as financial assets at fair value through other comprehensive income because these investments are held for long-term for strategic purposes and not for trading.

No strategic investments were disposed for the years ended December 31, 2023 and 2022, and there were no transfers of any cumulative gain or loss within equity relating to these investments.

• (d) Notes and accounts receivable

Notes and accounts receivable Notes and accounts receivable from related parties Less: loss allowance	December 31, 2023 $ 8,967,138 14,112,765 23,079,903 (47,079) $ 23,032,824	December 31, 2022 10,151,172 11,574,537 21,725,709 (60,060) 21,665,649

(i) The Company applies the simplified approach to provide for its expected credit losses, i.e. the use of lifetime expected loss provision for all receivables (including receivables from related parties). Forward-looking information is taken into consideration as well. Analysis of expected credit losses on notes and accounts receivable (including receivables from related parties) was as follows:

Current Past due 1-90 days Past due over 91 days	December 31, 2023	December 31, 2023
	Gross carrying amount $ 18,048,994 5,026,952 3,957 $ 23,079,903	Weighted- average loss rate 0.04% 0.73% 100%	Loss allowance
			6,589 36,533 3,957
			47,079

(Continued)

29

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

Current Past due 1-90 days Past due over 91 days	December 31, 2022	December 31, 2022
	Gross carrying amount $ 15,556,367 6,166,543 2,799 $ 21,725,709	Weighted- average loss rate 0.04% 0.83% 100%	Loss allowance
			6,301 50,960 2,799
			60,060

• (ii) Movements of the loss allowance for notes and accounts receivable (including receivables from related parties) were as follows:

Balance at January 1 Impairment losses (gain on reversal of impairment loss) Balance at December 31	2023 $ 60,060 (12,981) $ 47,079	2022
		42,731 17,329
		60,060

• (iii) The Company entered into factoring contracts with financial institutions to sell its accounts receivable without recourse. According to these contracts, the Company is not responsible for any risk of uncollectible accounts receivable, but only for the loss due to commercial disputes. The Company derecognized the above accounts receivable because it has transferred substantially all of the risks and rewards of their ownership, and it does not have any continuing involvement in them. The receivables from the financial institutions were recognized as “other receivables” upon the derecognition of those accounts receivable. Details of these contracts at each reporting date were as follows:

Underwriting bank Factored amount Taishin International Bank $ 921,910 (e) Other receivables Other receivables－others Other receivables from related parties			December 31, 2022	December 31, 2022
			Unpaid advance amount -	Advance amount 921,190	Amount recognized in other receivables Range of interest rates Collateral - 5.48% - December 31, 2023 December 31, 2022 $ 5,160 34,219 6,717 10,007 $ 11,877 44,226

As of December 31, 2023 and 2022, no loss allowance was provided for other receivables after management’s assessment.

(Continued)

30

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

(f) Inventories

Raw materials Work in process Finished goods Work in process－outsourced Inventories in transit	December 31, 2023 $ 851,305 141,245 4,687,098 469,966 49,658 $ 6,199,272	December 31, 2022
		311,534 168,200 5,202,619 764,626 82,087
		6,529,066

For the years ended December 31, 2023 and 2022, the cost of inventories sold amounted to $71,761,378 and $96,425,153, respectively, of which the write-downs of inventories to net realizable value amounted to $12,090, and $14,616, respectively.

(g) Investments accounted for using the equity method

A summary of the Company’s investments accounted for using the equity method at the reporting date is as follows:

Subsidiaries Associates	December 31, 2023 $ 50,189,425 5,509,523 $ 55,698,948	December 31, 2022
		53,441,900 2,940,105
		56,382,005

(i) Subsidiaries

Please refer to consolidated financial statements for the year ended December 31, 2023.

For the year ended December 31, 2023, the Company acquired additional 24.74% ownership of BBHC from CDH Medical Services Limited for a cash consideration of $5,656,725 and an investment payable of $628,958, wherein the difference between the decrease in noncontrolling interests and consideration paid amounting to $4,732,601 was recognized as － deductions to capital surplus difference between consideration and carrying amount arising from acquisition or disposal of shares of subsidiaries and retained earnings.

(Continued)

31

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

(ii) Impairment test on goodwill

The excess of acquisition over the Company’s share of the net fair value of the identifiable assets acquired and liabilities assumed at the date of acquisition is recognized as goodwill, and any impairment of goodwill should be recognized as a deduction from the carrying amount of the investments accounted for using equity method. The carrying amounts of goodwill arising from business combinations of Alpha Networks Inc. (“Alpha”), DFI Inc.(“DFI”) and Partner Tech Corp. (“ PTT” ) and the respective CGUs to which the goodwill were allocated for impairment test purpose as of December 31, 2023 and 2022 were as follows:

Alpha DFI PTT	December 31, 2023 $ 1,730,813 $ 1,427,555 $ 810,579	December 31, 2022
		1,730,813
		1,427,555
		810,579

Each CGU or group of CGUs to which the goodwill is allocated represents the lowest level within the group, at which the goodwill is monitored for internal management purpose. Based on the results of impairment tests conducted by the Company, no impairment loss was recognized as of December 31, 2023 and 2022. The recoverable amount of a CGU was determined based on the value in use, and the related key assumptions were as follows:

Alpha： Revenue growth rate Discount rates DFI： Revenue growth rate Discount rates PTT： Revenue growth rate Discount rates	December 31, 2023 December 31, 2022 13%~15% 11% 18.44% 18.11% December 31, 2023 December 31, 2022 7%~17% 7%~15% 16.80% 14.00% December 31, 2023 December 31, 2022 6% 7%~13% 15.65% 16.20%

• 1) The cash flow projections were based on future financial budgets, covering a period of 5 years, approved by management. Cash flows beyond that 5-year period have been extrapolated using 0% to 2.28% growth rate.

• 2) The estimation of discount rate is based on the weighted average cost of capital.

(Continued)

32

QISDA CORPORATION

Notes to the Parent-Company-Only Financial Statements

(iii) Investments in associates

Name of Associates Darfon Electronics Corp. (“DFN”) Norbel Baby Co., Ltd. (“Norbel”) TCI GENE INC (“TCI Gene”) Topview Optronics Corporation (“Topview”) Others	Main Business	Location Taiwan Taiwan Mainland China Taiwan	December	December
			Percentage of voting rights
	Manufacture and sale of computer peripheral products, power devices, green energy products and passive components Retail and wholesale of maternity and infant products, medical care products, dietary supplement, and cosmetics Genetic testing and wholesale of nutritional supplement Manufacture, sales and import and export of video surveillance cameras		% 20.87 % 28.54 % 17.84 % 20.00 -

In the second quarter of 2023, the Company acquired 28.54% ownership of Norbel for a cash consideration of 1,800,000. The equity-method was used to account for the investments as the Company has significant influence over Norbel.

In June 2023, the Company’s disposed parts of its ownership in Topview, wherein three of its directors had resigned, failing to own the majority of the board seats of Topview as of June 30, 2023, resulting in the Company to lose control over Topview and its subsidiaries, who were then no longer a subsidiary of the Company. Investments in Topview were reclassified to － investments accounted for using the equity method associates, resulting in a gain on disposal of investment of $273,124, which was included in other gains and losses.

In the second quarter of 2022, the Company invested an amount of $545,160 in TCI GENE Inc. to acquire 17.84% ownership of TCI GENE Inc., wherein the Company has significant influence over it

In the fourth quarter of 2022, the Company invested an amount of $163,850 in Rapidtek Technologies Inc. to acquire 17.38% ownership of Rapidtek Technologies Inc with its subsidiaries. The Company with its subsidiaries was elected as one of the five directors and has significant influence over Rapidtek Technologies Inc.

For the years ended December 31, 2023 and 2022, the Company’s shares of profits (losses) of associates amounted to $336,818 and $241,648, respectively.

The fair value of the investment in associates which are publicly traded were as follows:

DFN	December 31, 2023 $ 3,143,871	December 31, 2022
		2,192,589

(Continued)

33

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

The summarized financial information in respect of each of the Company’s material associates is set out below:

• 1) The summarized financial information of DFN:

Current assets Non-current assets Current liabilities Non-current liabilities Equity Equity attributable to non-controlling interests of DFN Equity attributable to shareholders of DFN Net sales Net income Other comprehensive income Total comprehensive income Total comprehensive income attributable to non-controlling interests of DFN Total comprehensive income attributable to shareholders of DFN The Company’s share of equity of associates at January 1 Net income attributable to the Company Other comprehensive income attributable to the Company Capital surplus and other adjustments attributable to the Company Dividends received from associates The carrying amount of investments in the associates at December 313	December 31, 2023 $ 21,637,187 13,244,407 (14,592,995) (4,519,500) $ 15,769,099 $ 3,564,494 $ 12,204,605 2023 $ 25,791,522 $ 1,897,101 945,051 $ 2,842,152 $ 289,781 $ 2,552,371 2023 $ 2,187,968 334,479 184,264 13,542 (174,014) $ 2,546,239	December 31, 2022 21,691,365 11,945,822 (14,613,333) (5,121,133) 13,902,721 3,388,170 10,514,551 2022 29,535,253 1,453,820 385,471 1,839,291 310,216 1,529,075 2022 2,040,465 250,265 75,878 (4,626) (174,014) 2,187,968

(Continued)

34

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

2)	The summarized financial information of Norbel:	The summarized financial information of Norbel:	The summarized financial information of Norbel:
					December 31,
						2023
	Current assets				$	2,549,818
	Non-current assets					1,967,855
	Current liabilities					(716,744)
	Non-current liabilities					(840,762)
	Equity				$	2,960,167
						From
						April 26,
						2023 to
					December 31,
						2023
	Net sales				$	2,361,669
	Net income				$	114,962
	Other comprehensive loss					(1,108)
	Total comprehensive income				$	113,854
						From
						April 26,
						2023 to
					December 31,
						2023
	The Company’s share of equity of associates at April			26, 2023	$	-
	Purchase of investments					1,800,000
	Net income attributable to the Company					10,786
	Other comprehensive loss attributable to the Company					(316)
	Dividends received from associates					(100,000)
	The carrying amount of investments in		the associates
	at December 31, 2023				$	1,710,470
3)	Aggregate financial information of associates that were not individually					material to the
	Company was summarized as follows. The financial information was				included in the
	Company’s parent-company-only	financial statements.
				December 31,	December 31,
				2023		2022
	The aggregate carrying amount of	associates that
	were not individually material to the		Company	$ 1,252,814		752,137

(Continued)

35

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

Attributable to the Company: Net loss Other comprehensive income (loss) Total comprehensive loss	2023 $ (8,447) 1,362 $ (7,085)	2022 (8,617) (204) (8,821)

(h) Property, plant and equipment

Cost: Balance at January 1, 2023 Additions Disposals Reclassification Balance at December 31, 2023 Balance at January 1, 2022 Additions Disposals Reclassification Balance at December 31, 2022 Accumulated depreciation: Balance at January 1, 2023 Depreciation Disposals Balance at December 31, 2023 Balance at January 1, 2022 Depreciation Disposals Balance at December 31, 2022 Carrying amounts: Balance at December 31, 2023 Balance at December 31, 2022	Land $ 805,484 - - - $ 805,484 $ 805,484 - - - $ 805,484 $ - - - $ - $ - - - $ - $ 805,484 $ 805,484	Buildings 1,830,220 13,681 - 5,204 1,849,105 1,762,480 35,336 - 32,404 1,830,220 1,296,478 45,940 - 1,342,418 1,249,489 46,989 - 1,296,478 506,687 533,742	Machinery 1,072,081 85,717 (10,588) 181,256 1,328,466 963,363 135,427 (54,092) 27,383 1,072,081 662,089 118,067 (10,588) 769,568 635,208 80,973 (54,092) 662,089 558,898 409,992	Other equipment 244,690 986 (14,374) 16,833 248,135 223,151 22,275 (5,124) 4,388 244,690 176,146 31,758 (13,494) 194,410 155,066 25,772 (4,692) 176,146 53,725 68,544	Construction in progress and equipment to be inspected 288,339 56,695 - (248,349) 96,685 234,976 148,600 - (95,237) 288,339 - - - - - - - - 96,685 288,339	Total
						4,240,814 157,079 (24,962 (45,056
						4,327,875
						3,989,454 341,638 (59,216 (31,062
						4,240,814
						2,134,713 195,765 (24,082
						2,306,396
						2,039,763 153,734 (58,784
						2,134,713
						2,021,479
						2,106,101

The Company has obtained a parcel of land located at Yilan County for a period of time, at the amount of $104,324. Because of certain legal restrictions, this land was not registered under the name of the Company. In order to protect the Company’s rights to this land, the Company entered into an agreement with the registered owner. The contract specified that the Company retain all rights and obligations of the land.

Please refer to note 8 for a description of the Company’s property, plant and equipment pledged as collateral for long-term debt.

(Continued)

36

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

(i) Right-of-use assets

Cost: Balance at January 1, 2023 Additions Disposals Reclassification to investment property Balance at December 31, 2023 Balance at January 1, 2022 Disposals Reclassification from investment property Balance at December 31, 2022 Accumulated depreciation: Balance at January 1, 2023 Depreciation Disposals Reclassification to investment property Balance at December 31, 2023 Balance at January 1, 2022 Depreciation Reclassification from investment property Disposals Balance at December 31, 2022 Carrying amounts: Balance at December 31, 2023 Balance at December 31, 2022

Buildings $ 950,424 9,901 (10,021) (7,895) $ 942,409 $ 860,447 (19,222) 109,199 $ 950,424 $ 514,813 98,256 (10,021) (4,276) $ 598,772 $ 386,754 99,051 48,230 (19,222) $ 514,813 $ 343,637 $ 435,611

(Continued)

37

QISDA CORPORATION

Notes to the Parent-Company-Only Financial Statements

(j) Investment property

Cost: Balance at January 1, 2023 Reclassification from right-of-use assets Balance at December 31, 2023 Balance at January 1, 2022 Reclassification to right-of-use assets Balance at December 31, 2022 Accumulated depreciation: Balance at January 1, 2023 Depreciation Reclassification from right-of-use assets Balance at December 31, 2023 Balance at January 1, 2022 Depreciation Reclassification to right-of-use assets Balance at December 31, 2022 Carrying amounts: Balance at December 31, 2023 Balance at December 31, 2022 Fair value: Balance at December 31, 2023 Balance at December 31, 2022

Right-of-use assets －buildings $ 287,736 7,895 $ 295,631 $ 396,935 (109,199) $ 287,736 $ 155,857 29,564 4,276 $ 189,697 $ 175,313 28,774 (48,230) $ 155,857 $ 105,934 $ 131,879 $ 158,653 $ 165,790

Investment property comprises a number of commercial properties that the Company leased to third parties. The fair value of the investment property is determined by considering the discounted value of the cash flow that the Company expects to receive the sub-lease rent. The inputs, which are used in the fair value measurement, were classified to Level 3.

As of December 31, 2023 and 2022, investment property was not pledged as collateral for bank loans.

(Continued)

38

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

(k) Intangible assets

(i) The movements of cost and accumulated amortization of intangible assets were as follows:

Cost: Balance at January 1, 2023 Additions Reclassification Balance at December 31, 2023 Balance at January 1, 2022 Additions Reclassification Balance at December 31, 2022 Accumulated amortization: Balance at January 1, 2023 Amortization Balance at December 31, 2023 Balance at January 1, 2022 Amortization Reclassification Balance at December 31, 2022 Carrying amounts: Balance at December 31, 2023 Balance at December 31, 2022	Computer software $ 349,774 240 - $ 350,014 $ 288,351 19,843 41,580 $ 349,774 $ 138,288 58,896 $ 197,184 $ 71,287 56,263 10,738 $ 138,288 $ 152,830 $ 211,486	Others 13,008 15,666 36,448 65,122 19,344 1,550 (7,886) 13,008 11,299 8,878 20,177 10,490 8,695 (7,886) 11,299 44,945 1,709	Total
			362,782 15,906 36,448
			415,136
			307,695 21,393 33,694
			362,782
			149,587 67,774
			217,361
			81,777 64,958 2,852
			149,587
			197,775
			213,195

(ii) Amortization

The amortization of intangible assets is included in the following line items of the statement of comprehensive income:

comprehensive income:
Cost of sales Operating expenses	2023 $ 44,720 23,054 $ 67,774	2022
		40,045 24,913
		64,958

(Continued)

39

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

• (l) Short-term borrowings

Unsecured bank loans Unused credit facilities Interest rate interval	December 31, 2023 $ 6,500,000 $ 14,575,750 1.63%~1.7059%	December 31, 2022
		1,870,000
		15,019,089
		1.397%~1.67%

• (m) Long-term debt

Unsecured bank loans $ Secured bank loans Less: current portion of long-term debt $ Unused credit facilities $ Interest rate interval Maturity year	December 31, 2023 21,930,804 - 21,930,804 (525,193) 21,405,611 22,183,839 1.3%~2.023% 2024~ 2028	December 31, 2022 26,074,908 1,425,000 27,499,908 (739,399) 26,760,509 14,225,333 1.175%~1.965% 2023~ 2026

• (i) Collateral for bank borrowings

Please refer to note 8 for a description of the Company’s assets pledged as collateral to secure the bank loans.

• (ii) Low interest rate loan from government assistance

In early 2020, the Company has obtained the low interest rate loans from banks in accordance with “ Guidelines of Project Loans for Returning Overseas Taiwanese Businesses” . The preferential interest rate ranged from 1.30% to 1.38%. The difference between the related loan amount and the estimated fair value of the loan using the prevailing market interest rate ranged from 1.65% to 1.83% was recognized as deferred government grant. The deferred income was transferred to other income when the loan was paid off.

• (iii) Compliance with loan agreement

According to the syndicated loan agreement signed between the Company and the banks, the Company has promised to maintain certain financial ratios based on the Company’ s semiannual reviewed consolidated financial statements and annual audited consolidated financial statements. If the Company violates any of the related financial ratios, the Company should mend it in a specific period, and the failure to maintain the required financial ratios during the amendment period would not be considered a default.

For the years ended December 31, 2023 and 2022, the Company’ s financial ratio was in compliance with the syndicated loan agreement.

(Continued)

40

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

(n) Bonds payable

The details of the Company’s secured corporate bonds were as follows:

Total secured corporate bonds issued Less: unamortized bond issuance cost Bonds payable－non-current	December 31, 2023 $ 3,000,000 (3,910) $ 2,996,090	December 31, 2022 3,000,000 (4,985) 2,995,015

On June 28, 2022, the Company issued $3,000,000 of secured corporate bonds at par value. The bonds have 5-year term and are repayable on maturity, with a fixed interest rate of 1.80% per annum, with simple interest and interest payable annually.

(o) Lease liabilities

The carrying amounts of lease liabilities were as follows:

Current Non-current	December 31, 2023 $ 139,704 $ 370,048	December 31, 2022
		137,022
		500,255

For the maturity analysis, please refer to note 6(z) for the financial risk management.

The amounts recognized in profit or loss were as follows:

The amounts recognized in profit or loss were as follows:
Expenses relating to short-term leases Income from sub-leasing right-of-use assets Interest expense on lease liabilities	2023 $ 3,784 $ 153,534 $ 10,326	2022
		7,709
		144,537
		12,618

The amounts recognized in the statement of cash flows for the Company was as follows:

Total cash outflow for leases	2023 $ 151,536	2022
		146,158

(i) Real estate leases

The Company leases buildings for its office and factory. These leases typically run for a period of 2 to 10 years. The Company has to negotiate the new leased term and recognize relevant right-of-use assets and lease liabilities when the lease expires. Some of the leases include an option to renew the lease for an additional period of the same duration after the end of the contract term.

(ii) Other leases

The Company leases some transportation equipment with contract terms within one year. These leases are short-term and the Company has elected to apply exemption and not to recognize right-of-use assets and lease liabilities.

(Continued)

41

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

(p) Provisions

Balance at January 1 Provisions made Amount utilized Amount reversed Balance at December 31 Current Non-current	2023 $ 107,570 34,248 (16,426) (25,972) $ 99,420 $ 16,426 $ 82,994	2022 106,808 44,639 (19,875) (24,002) 107,570 23,769 83,801

Warranty provision is estimated based on historical warranty data associated with similar products and services. The Company expects to settle most of the warranty liability within three years from the date of the sale of the product.

(q) Operating lease —the Company acts as a lessor

The Company leased its land and buildings under operating leases. The future minimum lease payments under operating leases are as follows:

Not later than 1 year Later than 1 year but not later than 5 years Later than 5 years	December 31, 2023 $ 141,814 359,234 19,112 $ 520,160	December 31, 2022
		143,892 463,290 31,954
		639,136

In 2023 and 2022, the related rental income amounted to $153,534 and $144,537, respectively, and － was recognized under non-operating income and loss other income.

(r) Employee benefits

• (i) Defined benefit plans

The reconciliation between the present value of defined benefit obligations and the net defined benefit liabilities for defined benefit plans was as follows:

Present value of defined benefit obligations Fair value of plan assets Net defined benefit liabilities	December 31, 2023 $ 647,327 (380,166) $ 267,161	December 31, 2022 716,938 (439,897) 277,041

(Continued)

42

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

The Company makes defined benefit plan contributions to the pension fund account at Bank of Taiwan that provides pension benefits for employees upon retirement. The plans (covered by the Labor Standards Law) entitle a retired employee to receive a payment based on years of service and average salary for the six months prior to the employee’s retirement.

1) Composition of plan assets

The pension fund (the “Fund”) contributed by the Company is managed and administered by the Bureau of Labor Funds of the Ministry of Labor (the Bureau of Labor Funds). According to the Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund, with regard to the utilization of the Fund, minimum earnings shall be no less than the earnings attainable from two-year time deposits with interest rates offered by local banks.

As of December 31, 2023 and 2022, the Company’s labor pension fund account balance at Bank of Taiwan amounted to $380,166 and $439,897, respectively. Please refer to the website of the Bureau of Labor Funds for information on the labor pension fund assets including the asset portfolio and yield of the fund.

• 2) Movements in present value of defined benefit obligations

Defined benefit obligations at January 1 Current service costs and interest expense Remeasurement on the net defined benefit liabilities: －Actuarial losses (gains) arising from experience adjustments －Actuarial losses (gains) arising from changes in financial assumptions Benefits paid by the plan Benefits paid by employer Defined benefit obligations at December 31 3) Movements of fair value of plan assets Fair value of plan assets at January 1 Interest income Remeasurement on the net defined benefit liabilities (assets) －Actuarial gains Contributions by the employer Benefits paid by the plan Fair value of plan assets at December 31	2023 $ 716,938 12,804 (8,181) 8,145 (81,537) (842) $ 647,327 2023 $ 439,897 7,523 1,804 12,479 (81,537) $ 380,166	2022 875,154 9,253 672 (92,194) (75,947) - 716,938 2022 462,771 2,875 36,399 13,799 (75,947) 439,897

(Continued)

43

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

• 4) Changes in the effect of the asset ceiling

In 2023 and 2022, there was no effect of the asset ceiling.

• 5) Expenses recognized in profit or loss

Current service costs Net interest expense on the net defined benefit liabilities Cost of sales Selling expenses Administrative expenses Research and development expenses	2023 $ 541 4,740 $ 5,281 $ 907 814 654 2,906 $ 5,281	2022 3,823 2,555
		6,378
		3,564 607 421 1,786
		6,378

• 6) Actuarial assumptions

The principal assumptions of the actuarial valuation were as follows:

Discount rate Future salary increases rate	December 31, 2023 December 31, 2022 % 1.625 % 1.750 % 3.000 % 3.000

The Company expects to make contribution of $11,966 to the defined benefit plans in the year following December 31, 2023.

The weighted average duration of the defined benefit plans is 13.05 years.

• 7) Sensitivity analysis

The following table summarizes the impact of a change in the assumptions on the present value of the defined benefit obligation on December 31, 2023 and 2022.

December 31, 2023 Discount rate Future salary change	Increase (decrease) in present value of defined benefit obligations 0.25% Increase 0.25% Decrease (16,153) 16,698 16,129 (15,678)

(Continued)

44

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

December 31, 2022 Discount rate Future salary change	Increase (decrease) in present value of defined benefit obligations 0.25% Increase 0.25% Decrease (18,472) 19,324 24,492 (23,745)

Each sensitivity analysis considers the change in one assumption at a time, leaving the other assumptions unchanged. This approach shows the isolated effect of changing one individual assumption but does not take into account that some assumptions are related. The method used to carry out the sensitivity analysis is the same as the calculation of the net defined benefit liabilities recognized in the balance sheets.

(ii) Defined contribution plans

The Company contributes monthly an amount equal to 6% of each employee’s monthly wages to the employee’ s individual pension fund account at the Bureau of Labor Insurance in accordance with the provisions of the Labor Pension Act. Under this defined contribution plan, the Company has no legal or constructive obligation to pay additional amounts after contributing a fixed amount to the Bureau of Labor Insurance.

For the years ended December 31, 2023 and 2022, the Company recognized pension expenses of $92,713 and $93,626, respectively, in relation to the defined contribution plans.

(s) Income taxes

(i) The components of income tax expense were as follows:

Current income tax expense (benefit) Deferred income tax expense (benefit) Origination and reversal of temporary differences Changes in unrecognized deductible temporary differences and tax losses Deferred income tax expense (benefit) Income tax expense	2023 $ (44,735) (716,559) 767,261 50,702 $ 5,967	2022 192,503 83,742 (142,398) (58,656) 133,847

In 2023 and 2022, there was no income tax recognized directly in equity or other comprehensive income.

(Continued)

45

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

Reconciliation of income tax expense and income before income tax for 2023 and 2022 was as follows:

Income before income tax Income tax using the Company’s statutory tax rate Investment income recorded under equity method Gains on disposal of investments Surtax on undistributed earnings Tax-exempt dividend income Changes in unrecognized temporary differences and tax losses Others Income tax expense	2023 $ 2,981,700 $ 596,340 (572,472) (54,625) - (87,572) 767,261 (642,965) $ 5,967	2022 8,385,777 1,677,155 (1,809,048) - 166,822 (133,552) (142,398) 374,868 133,847

• (ii) Deferred income tax assets and liabilities

• 1) Unrecognized deferred income tax assets and liabilities

Unrecognized deferred income tax assets:

Aggregate amount of temporary differences related to investments in subsidiaries Deductible temporary differences Tax losses Unrecognized deferred income tax liabilities: Aggregate amount of temporary differences related to investments in subsidiaries	December 31, 2023 $ 1,268,550 1,558,577 - $ 2,827,127 December 31, 2023 $ 2,612,307	December 31, 2022
		291,714 1,561,812 95,617
		1,949,143
		December 31, 2022
		2,501,584

As the Company is able to control the timing of the reversal of the temporary differences associated with investments in subsidiaries as of December 31, 2023 and 2022, and management considers that it is probable that the temporary differences will not reverse in the foreseeable future, such temporary differences are not recognized as deferred income tax assets and liabilities. In addition, as the Company determined that it is not probable that future taxable profits will be available against which the temporary differences and tax losses can be utilized, these items were not recognized as deferred income tax assets.

(Continued)

46

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

• 2) Recognized deferred income tax assets and liabilities

Changes in the amount of deferred income tax assets and liabilities for 2023 and 2022 were as follows:

Deferred income tax assets:

In 2023 Unrealized inter-company profits Deferred revenue Allowance for sales discounts Unrealized accrued expenses Others In 2022 Unrealized inter-company profits Deferred revenue Allowance for sales discounts Unrealized accrued expenses Others Deferred income tax liabilities: In 2023 Unrealized foreign exchange gains In 2022 Unrealized foreign exchange gains Unrealized inter-company losses	Balance at January 1, 2023 $ 61,336 9,491 335,504 14,989 81,193 $ 502,513 Balance at January 1, 2022 $ - 27,500 360,015 14,989 92,080 $ 494,584 Balance at January 1, 2023 $ - Balance at January 1, 2022 $ (29,137) (21,590) $ (50,727)	Recognized in profit or loss 7,418 1,412 (37,518) - (6,466) (35,154) Recognized in profit or loss 61,336 (18,009) (24,511) - (10,887) 7,929 Recognized in profit or loss (15,548) Recognized in profit or loss 29,137 21,590 50,727	Balance at December 31, 2023 68,754 10,903 297,986 14,989 74,727 467,359 Balance at December 31, 2022 61,336 9,491 335,504 14,989 81,193 502,513 Balance at December 31, 2023 (15,548) Balance at December 31, 2022 - - -

(iii) The Company’ s income tax returns for the years through 2021 have been assessed by the R.O.C. tax authorities.

(Continued)

47

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

(t) Capital and other equity

(i) Common stock

As of December 31, 2023 and 2022, the Company’ s authorized shares of common stock consisted of 50,000,000 thousand shares, of which 1,966,782 thousand shares were issued and outstanding. The par value of the Company’s common stock is $10 (Dollars) per share.

As of December 31, 2023 and 2022, the Company had issued 285 thousand units of global depository receipts (GDRs). The GDRs were listed on the Luxemburg Stock Exchange, and each GDR represents five common shares.

(ii) Capital surplus

December 31, 2023 Share of changes in equity of associates $ 161,235 Changes in ownership interests in subsidiaries 1,815,016 Difference between consideration and carrying amount arising from acquisition or disposal of shares in subsidiaries 1 Proceeds from disposal of forfeited employee stock managed by an employee stock ownership trust 7,648 Claim for the disagreement right 75 $ 1,983,975	December 31, 2022
	159,487 1,786,526 - 3,396 -
	1,949,409

Pursuant to the Company Act, any realized capital surplus is initially used to cover an accumulated deficit, and the balance, if any, could be transferred to common stock as stock dividends based on the original shareholding ratio or distributed as cash dividends based on a resolution approved by the stockholders. Realized capital surplus includes the premium derived from the issuance of shares of stock in excess of par value and donations from stockholders received by the Company. In accordance with the Regulations Governing the Offering and Issuance of Securities by Securities Issuers, distribution of stock dividends from capital surplus in any one year shall not exceed 10% of paid-in capital.

(iii) Unappropriated earnings and dividend policy

The Company’s articles of incorporation stipulate that at least 10% of annual earnings after deducting an accumulated deficit, if any, must be retained as a legal reserve until such retention equals the amount of paid-in capital. In addition, a special reserve should be set aside or reversed in accordance with applicable laws and regulations. The remaining balance of the annual net income, together with unappropriated earnings from previous years, if any, can be distributed as dividends after the earnings distribution plan proposed by the Board of Directors and approved during the stockholders’ meeting. The abovementioned distribution of earnings by way of cash dividends should be approved by the Company’s Board of Directors and then reported to the Company’s shareholders in its meeting.

The Company may distribute its legal reserve or capital surplus to shareholders by issuing new shares or by distributing cash according to article 241 of the Company Act. The abovementioned distribution of earnings by way of cash dividends could be approved by the Company’s Board of Directors and then reported to the Company’s shareholders in its meeting.

(Continued)

48

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

As the Company is a technology- and capital-intensive enterprise in its growing phase, the Company has adopted a remaining earnings appropriation method as its dividend policy in order to meet long-term capital needs and cash requirements of stockholders, and thereby maintain continuous development and steady growth.

The Company’s requirements for future expansion and cash flow are the primary factors that the Company considers when appropriating its earnings. The distribution ratio for cash dividends shall not be less than 10% of the total distribution.

1) Legal reserve

If a company has no accumulated deficit, it may, pursuant to a resolution approved by the stockholders, distribute its legal reserve to shareholders by issuing new shares or by distributing cash for the portion in excess of 25% of the paid-in capital.

2) Special reserve

In accordance with the requirements issued by the FSC, a portion of earnings shall be allocated as special reserve during earnings distribution. The Company shall make allocation of special reserve for the amount of the current-period total net reduction of other shareholders’ equity. An equivalent amount of special reserve shall be allocated from the after-tax net profit in the period, plus items other than the after-tax net profit in the period that are included in the undistributed current-period earnings and the undistributed prior-period earnings. A portion of the undistributed prior-period earnings shall be reclassified to special earnings reserve (which does not qualify for earnings distribution) to account for cumulative changes to the net reduction of other shareholders’ equity pertaining to prior periods. The amounts of subsequent reversals pertaining to the net reduction of other shareholders’ equity shall qualify for additional distributions.

3) Earnings distribution

The appropriations of cash dividends of 2022 and 2021 earnings were approved by the Company’ s Board of Directors on March 6, 2023 and March 17, 2022, respectively. Other appropriations of 2022 and 2021 earnings were approved by the shareholders during their meetings on May 29, 2023 and May 31, 2022, respectively. The resolved appropriations were as follows:

		2022 earnings	2022 earnings	2022 earnings	2021 earnings	2021 earnings
	Dividends				Dividends
	per share				per share
	(in	dollars)		Amount	(in dollars)	Amount
Legal reserve			$	832,491		798,486
Appropriation (reversal) of			$	4,243,165		(431,423)
special reserve
Dividends per share:
Cash dividends	$	2.00		3,933,564	2.50	4,916,955

(Continued)

49

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

On March 5, 2024, the appropriation of cash dividends of 2023 earnings was approved by the Company’s Board of Directors were as follows:

Dividends per share: Cash dividends	2023 earnings	2023 earnings
	Dividends per share (in dollars) $ 1.20	Amount
		2,360,138

(iv) Other equity items (net after tax)

1)	Foreign currency translation differences
			2023	2022
	Balance at January 1	$	875,030	(1,723,237)
	Foreign exchange differences arising from translation
	of foreign operations		(198,384)	2,598,267
	Balance at December 31	$	676,646	875,030
2)	Unrealized gains (losses) on financial assets at fair value		through other	comprehensive
	income
			2023	2022
	Balance at January 1	$	(5,663,889)	1,378,567
	Unrealized gains (losses) from investments in
	equity instruments at fair value through
	other comprehensive income		1,466,613	(5,899,090)
	Disposal of financial assets at fair value through
	other comprehensive income by investees		(256,167)	(89,701)
	Share of other comprehensive income (loss)
	of subsidiaries and associates		672,183	(1,053,665)
	Balance at December 31	$	(3,781,260)	(5,663,889)
3)	Remeasurement of defined benefit plans
			2023	2022
	Balance at January 1	$	(287,528)	(488,552)
	Remeasurement of the defined benefit plans		1,840	127,921
	Shares of remeasurement of the defined benefit plans
	of subsidiaries and associates accounted for using
	the equity method		2,548	73,103
	Balance at December 31	$	(283,140)	(287,528)

(Continued)

50

QISDA CORPORATION

Notes to the Parent-Company-Only Financial Statements

(u) Earnings per share (“EPS”)

(i) Basic earnings per share

The basic earnings per share were calculated as the profit attributable to shareholders of the Company divided by the weighted-average number of ordinary shares outstanding as follows:

Profit attributable to shareholders of the Company Weighted-average number of common shares outstanding (in thousands) Basic earnings per share (in New Taiwan dollars) (ii) Diluted earnings per share Profit attributable to shareholders of the Company Weighted-average number of common shares outstanding (in thousands) Effect of dilutive potential common shares (in thousands): Remuneration to employee Weighted-average number of common shares outstanding (including effect of dilutive potential common shares) (in thousands) Diluted earnings per share (in New Taiwan dollars) (v) Revenue from contracts with customers (i) Disaggregation of revenue Primary geographical markets: Asia Europe Americas Others Major products/services lines: Electronic products Other design and development service	2023 $ 2,975,733 1,966,782 $ 1.51 2023 $ 2,975,733 1,966,782 9,059 1,975,841 $ 1.51 2023 $ 43,072,678 7,988,172 24,168,482 196,147 $ 75,425,479 $ 74,266,997 1,158,482 $ 75,425,479	2022
		8,251,930
		1,966,782
		4.20
		2022
		8,251,930
		1,966,782 28,003
		1,994,785
		4.14
		2022
		59,813,189 9,895,989 32,035,907 183,440
		101,928,525
		100,147,051 1,781,474
		101,928,525

(Continued)

51

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

(ii) Contract balances

Notes and accounts receivable (including related parties) Less: loss allowance Contract liabilities	December 31, 2023 $ 23,079,903 (47,079) $ 23,032,824 $ 781,653	December 31, 2022 21,725,709 (60,060) 21,665,649 702,353	January 1, 2022 20,180,783 (42,731) 20,138,052 556,308

For details on notes and accounts receivable and related loss allowance, please refer to note 6(d).

The amounts of revenue recognized for the years ended December 31, 2023 and 2022 that was included in the contract liability balances at January 1, 2023 and 2022 were $182,070 and $556,308, respectively.

(w) Remuneration to employees and directors

The Company’s Article of Incorporation requires that earnings shall first to be offset against any deficit, then, a range from 5% to 20% will be distributed as remuneration to its employees and no more than 1% to its directors. Employees who are entitled to receive the abovementioned employee remuneration, in shares or cash, include the employees of the subsidiaries of the Company who meet certain specific requirement.

For the years ended December 31, 2023 and 2022, the Company estimated its remuneration to employees amounting to $245,716 and $681,239, respectively, and the remuneration to directors amounting to $6,800 and $18,672, respectively. The abovementioned estimated amounts are calculated based on the net profits before tax of each period (excluding the remuneration to employees and directors), multiplied by a certain percentage of the remuneration to employees and directors. The estimations are recognized as cost of sales or operating expenses. If the actual amounts differ from the estimated amounts, the differences shall be accounted as changes in accounting estimates and recognized as profit or loss in next year.

The estimated remuneration to employees and directors for 2023 and 2022 were the same as the amount approved by the Company’ s Board of Directors on March 5, 2024 and March 6, 2023, respectively, and paid in cash. Related information is available on the Market Observation Post System website of the Taiwan Stock Exchange.

• (x) Non-operating income and loss

• (i) Interest income

Interest income from bank deposits	2023 $ 99,692	2022
		20,696

(Continued)

52

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

(ii) Other income Rental income Dividend income Government grants income (iii) Other gains and losses, net Gain on disposal of property, plant and equipment Gain on disposal of investments (note 6(g)) Foreign currency exchange gains (losses) Losses on financial assets and liabilities at fair value through profit or loss Others (iv) Finance costs Interest expense from loans Interest expense on lease liabilities (y) Financial instruments (i) Categories of financial instruments 1) Financial assets Financial assets at fair value through profit or loss Financial assets at fair value through other comprehensive income Financial assets measured at amortized cost: Cash and cash equivalents Notes and accounts receivable and other receivables (including related parties) Other financial assets－non-current Subtotal Total	2023 $ 153,534 437,858 7,282 $ 598,674 2023 $ 2,379 273,124 16,124 (34,954) 28,148 $ 284,821 2023 $ (657,732) (10,326) $ (668,058) December 31, 2023 $ 133,486 9,709,736 2,532,956 23,044,701 38,566 25,616,223 $ 35,459,445	2022 144,537 667,761 15,002 827,300 2022 1,582 - (470,750) (149,403) 32,075 (586,496) 2022 (540,450) (12,618) (553,068) December 31, 2022 9,010 8,182,595 1,442,156 21,709,875 71,959 23,223,990 31,415,595 (Continued)

53

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

2) Financial liabilities

Financial liabilities at fair value through profit or loss Financial liabilities measured at amortized cost: Short-term borrowings Notes and accounts payable and other payables (including related parties) Lease liabilities (including current portion and related parties) Bonds payable Long-term debt (including current portion) Other non-current liabilities－guarantee deposits Subtotal Total	December 31, 2023 $ - 6,500,000 28,729,237 509,752 2,996,090 21,930,804 9,781 60,675,664 $ 60,675,664	December 31, 2022
		13,030
		1,870,000 20,929,850 637,277 2,995,015 27,499,908 12,805
		53,944,855
		53,957,885

• (ii) Fair value information

• 1) Financial instruments not measured at fair value

The Company considers that the carrying amounts of financial assets and financial liabilities measured at amortized cost approximate their fair values.

• 2) Financial instruments measured at fair value

The financial department of the Company evaluates the fair value of financial instrument and utilizes the assistance from external experts or financial institutions for the evaluation of fair value when necessary, and regularly revises the inputs and makes essential adjustments on the fair value to confirm the evaluation results are reasonable.

The financial instruments at fair value through profit and loss and financial assets at fair value through other comprehensive income are measured at fair value on a recurring basis. The table below analyzes financial instruments that are measured at fair value subsequent to initial recognition, grouped into Levels 1 to 3 based on the degree to which the fair value is observable. The different levels have been defined as follows:

• a) Level 1: quoted prices (unadjusted) in active markets for identified assets or liabilities.

• b) Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).

• c) Level 3: inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

(Continued)

54

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

Financial assets at fair value through profit and loss: Derivative instruments－foreign currency forward contracts Privately held equity securities Financial assets at fair value through other comprehensive income: Domestic listed stocks Privately held equity securities		December 31, 2023	December 31, 2023
		Fair Value
	Level 1 $ - - $ - $ 9,707,602 - $ 9,707,602	Level 2 37,360 - 37,360 - - -	Level 3 - 96,126 96,126 - 2,134 2,134	Total
				37,360 96,126
				133,486
				9,707,602 2,134
				9,709,736

Level 1 Financial assets at fair value through profit and loss: Derivative instruments－foreign currency forward contracts $ - Derivative instruments－foreign exchange swaps - Subtotal $ - Financial assets at fair value through other comprehensive income: Domestic listed stocks $ 8,027,425 Privately held stocks - Subtotal $ 8,027,425 Financial liabilities at fair value through profit and loss: Derivative instruments－foreign exchange swaps $ -		December 31, 2022	December 31, 2022
		Fair Value
		Level 2 8,276 734 9,010 - - - 13,030	Level 3 - - - - 155,170 155,170 -	Total
				8,276 734
				9,010
				8,027,425 155,170
				8,182,595
				13,030

3) Valuation techniques and assumptions used in fair value measurement

• a) Non-derivative financial instruments

The fair value of financial instruments traded in active liquid markets is determined with reference to quoted market prices.

For listed stock with standard terms and conditions and traded in active markets. The fair value is based on quoted market prices.

(Continued)

55

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

The fair value of privately held equity securities is estimated by using the market approach and is determined by reference to valuations of similar companies, net worth and recent operating activities. The significant unobservable inputs is primarily the liquidity discounts. No quantitative information is disclosed due to that the possible changes in liquidity discounts would not cause significant potential financial impact.

• b) Derivative financial instruments

The fair value of derivative financial instruments is determined using a valuation technique generally accepted by market participants. The fair value of foreign currency forward contracts and foreign exchange swaps is usually determined by the forward exchange rate.

• 4) Transfer between levels of the fair value hierarchy

There was no transfer among fair value hierarchies for the years ended December 31, 2023 and 2022.

• 5) Movement in financial assets included in Level 3 fair value hierarchy

Financial assets at fair value through profit or loss:

Balance at January 1 Additions Balance at December 31	2023
	$ - 96,126 $ 96,126

Financial assets at fair value through other comprehensive income:

Balance at January 1 Additions Recognized in other comprehensive income Balance at December 31	2023 $ 155,170 60,528 (213,564) $ 2,134	2022
		- 155,170 -
		155,170

(z) Financial risk management

The Company is exposed to credit risk, liquidity risk, and market risk (including currency risk, interest rate risk, and other market price risk). The Company has disclosed the information on exposure to the aforementioned risks and the Company’s policies and procedures to measure and manage those risks as well as the quantitative information below.

The Company’s Board of Directors is responsible for developing and monitoring the Company’s risk management policies. The Company’ s risk management policies are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor adherence to the controls. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s operations.

(Continued)

56

QISDA CORPORATION

Notes to the Parent-Company-Only Financial Statements

The Company’ s management monitors and reviews financial activities in accordance with procedures required by relevant regulations and internal controls. Internal auditors undertake both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the Company’s Board of Directors.

(i) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty of a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s cash and cash equivalents, derivative instruments, receivables from customers, and other receivables. The maximum exposure to credit risk is equal to the carrying amount of the Company’s financial assets.

The Company maintains cash and enters into derivative transactions with various reputable financial institutions; therefore, the exposure related to potential default by those counterparties is not considered significant.

The majority of the Company’s customers are well-known international companies with high financial transparency in the electronics industry. As of December 31, 2023 and 2022, 74% and 72%, respectively, of the Company’s notes and accounts receivable were concentrated in the top five customers. In order to reduce credit risk of accounts receivable, the Company has established a credit policy under which each customer is analyzed individually for creditworthiness for the purpose of setting the credit limit. Additionally, the Company continuously evaluates the credit quality of customers and utilizes insurance to minimize the risk.

The Company’s policy provides financial guarantees only to wholly owned subsidiaries. As of December 31, 2023 and 2022, except for its subsidiaries, the Company did not provide any other guarantees and endorsements.

(ii) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in settling its financial liabilities by delivering cash or other financial assets. The Company manages liquidity risk by monitoring regularly the current and mid- to long-term cash demand, maintaining adequate cash and banking facilities, and ensuring compliance with the terms of the loan agreements. As of December 31, 2023 and 2022, the Company had unused credit facilities of $35,837,089 and $29,244,422, respectively.

(Continued)

57

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

The table below summarizes the maturity profile of the Company’s financial liabilities based on contractual undiscounted payments, including principal and interest.

December 31, 2023 Non-derivative financial liabilities: Short-term borrowings with floating interest rates Lease liabilities Bonds payable with fixed interest rates Long-term debt with floating interest rates Notes and accounts payable Other payables Guarantee deposits Derivative financial instruments: Foreign currency forward contracts: Outflow Inflow December 31, 2022 Non-derivative financial liabilities: Short-term borrowings with floating interest rates Lease liabilities Bonds payable with fixed interest rates Long-term debt with floating interest rates Notes and accounts payable Other payables Guarantee deposits Derivative financial instruments: Foreign currency forward contracts: Outflow Inflow Foreign exchange swaps: Outflow Inflow	Contractual cash flows $ 6,510,098 526,705 3,189,000 23,452,483 26,328,292 2,400,945 9,781 $ 62,417,304 $ 1,394,053 (1,431,413) $ (37,360) $ 1,873,773 664,319 3,243,000 27,678,690 18,695,912 2,233,938 12,805 $ 54,402,437 $ 278,203 (286,479) 4,929,096 (4,916,800) $ 4,020	Within 6 months 6,510,098 73,876 27,000 499,090 26,328,292 2,400,945 - 35,839,301 1,394,053 (1,431,413) (37,360) 1,873,773 73,876 27,000 412,148 18,695,912 2,233,938 - 23,316,647 278,203 (286,479) 4,929,096 (4,916,800) 4,020	6-12 months - 73,876 27,000 435,507 - - - 536,383 - - - - 73,454 27,000 422,570 - - 286 523,310 - - - - -	1-2 years - 148,519 54,000 6,205,116 - - 3,101 6,410,736 - - - - 142,683 54,000 12,216,894 - - 6,309 12,419,886 - - - - -	2-5 years - 230,434 3,081,000 16,312,770 - - 125 19,624,329 - - - - 374,306 3,135,000 14,627,078 - - 116 18,136,500 - - - - -	More than 5 years - - - - - - 6,555
						6,555
						- -
						-
						- - - - - - 6,094
						6,094
						- - - -
						-

The Company does not expect that the cash flows included in the maturity analysis would occur significantly earlier or at significantly different amounts.

(Continued)

58

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

• (iii) Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates, and equity prices, will affect the Company’ s income or the value of its financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.

The Company utilizes derivative financial instruments to manage market risk and the volatility of profit or loss. All such transactions are carried out within the guidelines set by the Company’s Board of Directors.

• 1) Foreign currency risk

The Company utilizes foreign currency forward contracts and foreign exchange swaps to hedge its foreign currency exposure with respect to its sales and purchases. These financial instruments help to reduce, but do not eliminate, the impact of foreign currency exchange rate movements.

The maturity dates of derivative financial instruments the Company entered into were less than six months and did not conform to the criteria for hedge accounting.

The Company’s exposure to foreign currency risk arises from cash and cash equivalents, notes and accounts receivable (including related-party transactions), notes and accounts payable (including related-party transactions), other receivables (including related-party transactions), other payables (including related-party transactions), and loans and borrowings that are denominated in a currency other than the functional currency of Company. At the reporting date, the carrying amounts of the Company’ s significant monetary assets and liabilities denominated in a currency other than the functional currency of the Company and the sensitivity analysis were as follows:

Financial assets USD Financial liabilities		December 31, 2023	December 31, 2023	December 31, 2023
	Foreign currency (in thousands) $ 816,760 860,117	Exchange rate 30.750 30.750	NTD (in thousands) 25,115,370 26,448,598	Change in magnitude Pre-tax effect on profit or loss % 1 251,154 % 1 264,486
USD

Financial assets USD Financial liabilities		December 31, 2022 Exchange rate NTD (in thousands) Change in magnitude Pre-tax effect on profit or loss 30.730 22,640,696 % 1 226,407 30.730 18,472,264 % 1 184,723 (Continued)	December 31, 2022 Exchange rate NTD (in thousands) Change in magnitude Pre-tax effect on profit or loss 30.730 22,640,696 % 1 226,407 30.730 18,472,264 % 1 184,723 (Continued)
	Foreign currency (in thousands) $ 736,762 601,115	Exchange rate 30.730 30.730	NTD (in thousands) 22,640,696 18,472,264
USD

59

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

As the Company deals in diverse foreign currencies, gains and losses on foreign exchange were summarized as a single amount. Please refers to note 6(x) for the aggregate of realized and unrealized foreign exchange gains for the years ended December 31, 2023 and 2022.

2) Interest rate risk

The Company’s short-term borrowings and long-term debt carried floating interest rates. To manage the interest rate risk, the Company periodically assesses the interest rates of bank loans and maintains good relationships with financial institutions to obtain lower financing costs. The Company also strengthens the management of working capital to reduce the dependence on bank loans as well as the risk arising from fluctuation of interest rates.

The following sensitivity analysis is based on the risk exposure to floating-interest-rate liabilities on the reporting date. The sensitivity analysis assumes the liabilities recorded at the reporting date had been outstanding for the entire period.

If interest rates had been 100 basis points (1%) higher/lower, with all other variables held constant, pre-tax income for the years ended December 31, 2023 and 2022 would have been $284,308 and $293,699, respectively, lower/higher, which mainly resulted from the borrowings with floating interest rates.

3) Other market price risk

The Company is exposed to the risk of price fluctuation in the securities market due to the equity investment. The Company supervises the equity price risk actively and manages the risk based on fair value.

Assuming a hypothetical increase or decrease of 5% in equity prices of the equity investments at each reporting date, the other comprehensive income for the years ended December 31, 2023 and 2022, would have increased or decreased by $485,487 and $409,130, respectively.

(aa) Capital management

In consideration of the industry dynamics and future developments, as well as external environment factors, the Company maintains an optimal capital structure to enhance long-term shareholder value by managing its capital in a manner to ensure that it has sufficient and necessary financial resources to fund its working capital needs, capital expenditures, repayment of debts, dividend payments, and other business requirements for continuing operations and to reward shareholders and take into consideration the interests of other stakeholders. The Company monitors its capital through reviewing the liability-to-equity ratio periodically.

(Continued)

60

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

The Company’s liability-to-equity ratio at the end of each reporting period was as follows:

Total liabilities Total equity Liability-to-equity ratio	December 31, 2023 $ 63,507,616 $ 37,057,358 % 171.38	December 31, 2022
		57,088,311
		40,726,314
		% 140.18

• (ab) Investing and financing activities not affecting current cash flow

• (i) Please refer to note 6(i) for a description of acquisition of right-of-use assets under lease in 2023.

• (ii) Reconciliation of liabilities arising from financing activities was as follows:

Short-term borrowing Long-term debts Bonds payable Lease liabilities Total liabilities from financing activities Short-term borrowing Long-term debts Bonds payable Lease liabilities Total liabilities from financing activities	January 1, 2023 $ 1,870,000 27,499,908 2,995,015 637,277 $ 33,002,200 January 1, 2022 $ 3,417,200 21,052,602 - 763,108 $ 25,232,910	Cash flows 4,630,000 (5,559,986) - (137,426) (1,067,412) Cash flows (1,547,200) 6,461,718 2,994,473 (125,831) 7,783,160	Non-cash	changes Others - (9,118) 1,075 - (8,043) changes Others - (14,412) 542 - (13,870)	December 31, 2023
			Additions - - - 9,901 9,901 Non-cash
					6,500,000 21,930,804 2,996,090 509,752
					31,936,646
					December 31, 2022
			Additions - - - - -
					1,870,000 27,499,908 2,995,015 637,277
					33,002,200

(Continued)

61

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

7. Related-party transactions

• (a) Name and relationship with related parties

The followings are subsidiaries and other related parties that have had transactions with the Company during the reporting periods.

Name of related party

Qisda Sdn. Bhd. (“QLPG”) Qisda America Corp. (“QALA”) Qisda Japan Co., Ltd. (“QJTO”) BenQ Corp. (“BenQ”) BenQ Material Corp. (“BMC”) BenQ Dialysis Technology Corp. (“BDT”) Qisda Optronics Corp. (“QTOS”) Qisda (L) Corp. (“QLLB”) Darly Venture (L) Ltd. (“Darly”) Darly Venture Inc. (“APV”) BenQ BM Holding Cayman Corp. (“BBHC”) BenQ Biotech (Shanghai) Co., Ltd. (“BBC”) Guangxi Youshan Medical Technology Co., Ltd. (“Youshan”) Wangcheng Medical Technology(Chengdu) Co., Ltd. (“Wangcheng”) Shanghai Filter Technology Co., Ltd. (“ Filter”) Shanghai Zhenglang Medical Equipment Co., Ltd. (“Zhenglang”) Shanghai Perfusion Medical Technology Co., Ltd. Qisda Vietnam Co., Ltd. (“QVH”) Qisda (Suzhou) Co., Ltd. (“QCSZ”) Qisda (Hong Kong) Limited (“QCHK”) BenQ Medical (Shanghai) Co., LTD. (“BMSH”) Qisda (Shanghai) Co., Ltd. (“QCSH”) Qisda Electronics (Suzhou) Co., Ltd. (“QCES”) Qisda Optronics (Suzhou) Co., Ltd. (“QCOS”) Qisda Precision Industry (Suzhou) Co., Ltd. (“QCPS”) ACE Energy Co., Ltd. (“AEG”) BenQ Europe B.V. (“BQE”) BenQ Asia Pacific Corp. (“BQP”) BenQ America Corporation (“BQA”) BenQ Latin America Corp. (“BQL”) Mainteq Europe B.V. (“MQE”)

Relationship with the Company The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary

The Company’s subsidiary

The Company’s subsidiary The Company’s subsidiary

The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary

(Continued)

62

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

Relationship with the Company The Company’s subsidiary The Company’s subsidiary

Name of related party Darly2 Venture Co., Ltd. (“Darly 2”) The Company’s subsidiary BenQ Intelligent Technology (Hong Kong) Co., Ltd. The Company’s subsidiary (“BQHK_HLD”) BenQ INFTY Lab Ltd. (“INF”) The Company’s subsidiary BenQ Guru Holding Limited (“GSH”) The Company’s subsidiary BenQ Medical Technology Corp. (“BMTC”) The Company’s subsidiary PT BenQ Teknologi Indonesia (“BQid”) The Company’s subsidiary BenQ Korea Co., Ltd. (“BQkr”) The Company’s subsidiary BenQ Japan Co., Ltd. (“BQjp”) The Company’s subsidiary BenQ Australia Pty Ltd. (“BQau”) The Company’s subsidiary BenQ (M.E.) FZE (“BQme”) The Company’s subsidiary BenQ India Private Ltd. (“BQin”) The Company’s subsidiary BenQ Singapore Pte Ltd. (“BQsg”) The Company’s subsidiary BenQ Service & Marketing (M) Sdn. Bhd (“BQmy”) The Company’s subsidiary BenQ (Thailand) Co., Ltd. (“BQth”) The Company’s subsidiary BenQ Vietnam Co., Ltd. (BQvn) The Company’s subsidiary BenQ Technology (Shanghai) Co., Ltd. (“BQls”) The Company’s subsidiary ShengCheng Trading (Shanghai) Co., Ltd. (“BQsha_EC2”) The Company’s subsidiary BenQ Intelligent Technology (Shanghai) Co., Ltd. The Company’s subsidiary (“BQC_RO”) Guru Systems (Suzhou) Co., Ltd. (“GSS”) The Company’s subsidiary Metaguru Corporation (“MRU”) The Company’s subsidiary BenQ Canada Corp. (“BQca”) The Company’s subsidiary BenQ Mexico S. de R.L. de C.V. (“BQmx”) The Company’s subsidiary Joytech LLC. (“Joytech”) The Company’s subsidiary Vividtech LLC. (“Vividtech”) The Company’s subsidiary MaxGen Comercio Industrial Imp E Exp Ltda. (“MaxGen”) The Company’s subsidiary BenQ Service de Mexico S. de R.L. de C.V. (“BQsm”) The Company’s subsidiary BenQ UK Limited (“BQuk”) The Company’s subsidiary BenQ Deutschland GmbH (“BQde”) The Company’s subsidiary BenQ Iberica S.L. Unipersonal (“BQib”) The Company’s subsidiary BenQ Austria GmbH (“BQat”) The Company’s subsidiary BenQ Benelux B.V. (“BQnl”) The Company’s subsidiary BenQ Italy S.R.L. (“BQit”) The Company’s subsidiary BenQ France SAS (“BQfr”) The Company’s subsidiary BenQ Nordic A.B. (“BQse”) The Company’s subsidiary BenQ LLC. (“BQru”) The Company’s subsidiary BenQ BM Holding Corp. (“BBM”) The Company’s subsidiary Darly Consulting Corporation (“Darly C”) The Company’s subsidiary

(Continued)

63

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

Name of related party

Highview Investments Limited (“Highview”) Asiaconnect International Company (“Asiaconnect”) LILY Medical Corporation (“LILY”) BenQ AB Dentcare Corporation (“BABD”) BenQ HealthCare Corporation (“BHS”) EASTECH CO., LTD. (“EASTECH“) BenQ Medical Technology (Shanghai) Ltd. (“BMTS”) Concord Medical Co., Ltd. (“Concord”) LILY Medical (Suzhou) Co., Ltd. (“ALS”) New Best Hearing International Trade Co., Ltd. (“NBHIT”) Concord Healthcare Co., Ltd. (“CCHC”) CKCARE Co., Ltd. (“CKCARE”) BenQ Materials (L) Co. (“BMLB”) Sigma Medical Supplies Corp. (“SGM”) Suzhou Sigma Medical Supplies Co., Ltd. Genejet Biotech Co., Ltd. (“GJB”) Cenefom Corp. (“CENEFOM”) BenQ Material (Suzhou) Co., Ltd. (“BMS”) Daxon Biomedical (Suzhou) Co., Ltd. (“DTB”) BenQ Materials Medical Supplies (Suzhou) Co., Ltd. (“BMM”) BenQ Materials (Wuhu) Co., Ltd. Web-Pro Corporation (“WPC”) Beyond Top Pte. Ltd. (“WPSG”) Web-Pro (Vietnam) Co., Ltd. (“WPVN”) Nanjing BenQ Hospital Co., Ltd. (“NMH”) Suzhou BenQ Hospital Co., Ltd. (“SMH”) BenQ Hospital Management Consulting (Nanjing) Co., Ltd. (“NMHC”) BenQ Healthcare Consulting Corporation (“BHCC”) Suzhou BenQ Investment Co., Ltd. (“BIC”) Partner Tech Corp. (“PTT”) Partner-Tech Europe GmbH (“PTE”) Partner Tech Middle East FZCO (“PTME”) Partner Tech North Africa (“PTNA”) Partner Tech France (“PTF”) Partner Tech UK Corp., Ltd. (“PTUK”) P&S Investment Holding Co., Ltd. (B.V.I.) Partner Tech (Shanghai) Co., Ltd. (“PTCM”)

Relationship with the Company

The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary

The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary

The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary

(Continued)

64

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

Name of related party

Partner Tech USA Inc. (“PTU”) Webest Solution Corporation (“WEBEST”) Mace Digital Corporation(“PTMG”) Sloga Team D.o.o. (“Sloga”) Retail Solution & System S.L. (“RSS”) E-POS International LLC (“E-POS”) Epoint Systems Pte. Ltd. (“PTSE”) Partner Tech Africa Pacific Corp. La Fresh information Co., Ltd. (“PTTN”) Corex (Pty) Ltd. (“Corex”) Ace Pillar Co., Ltd. (“ACE”) Cyber South Management Ltd. Tianjin Ace Pillar Co., Ltd. Hong Kong Ace Pillar Enterprise Company Limited Bluewalker GmbH (“BWA”) Standard Technology Corp. (“STC”) Standard Technology Corp. (“STCBVI”) Standard International Trading (Shanghai) Co., Ltd. Proton Inc. Ace Tek (HK) Holding Co., Ltd. Suzhou Super Pillar Automation Equipment Co., Ltd. Grace Transmission (Tianjin) Co., Ltd. Advancedtek Ace (TJ) Inc. DFI Inc.(“DFI”) DFI AMERICA, LLC DFI Co., Ltd. Yan Tong Technology Ltd. Diamond Flower Information (NL) B.V. Brainstorm Corporation Yan-Tong Infotech (Dongguan) Co., Ltd. Yan Ying Hao Trading (ShenZhen) Co., Ltd. Aewin Technologies Co., Ltd (“AEWIN”) WISE WAY Aewin Tech Inc. Bright Profit Aewin Beijing Technologies Co., Ltd. Aewin (Shenzhen) Technologies Co., Ltd. K2 International Medical Inc. (“K2”) K2 Medical (Thailand) Co., Ltd.

Relationship with the Company

The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary

(Continued)

65

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

Relationship with the Company The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary

Name of related party K2 (Shanghai) International Medical Inc. PT. Frismed Hoslab Indonesia Data Image Corporation (“DIC”) Data Image (Mauritius) Corporation Data Image (Suzhou) Corporation DIVA Laboratories. Ltd. (“DIVA”) DIVA Laboratories GmbH DIVA Laboratories U.S., LLC Panoramic Imaging Solutions Inc. Diva Capital Inc. Diva Holding Inc. Suzhou Diva Lab. Inc. Expert Alliance Systems & Consultancy (HK) Co., Ltd. (“EASC”) Expert Alliance Smart Technology Co., Ltd. Topview Optronics Corporation (“Topview”)

Diva Capital Inc. Diva Holding Inc. Suzhou Diva Lab. Inc. Expert Alliance Systems & Consultancy (HK) Co., Ltd. (“EASC”)	The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary
Expert Alliance Smart Technology Co., Ltd.	The Company’s subsidiary
Topview Optronics Corporation (“Topview”)	Prior to June 30, 2023, Topview
	was a subsidiary of the Company.
	Starting June 30, 2023, Topview
	became an associate of the Company.
Messoa Technologies Inc. (“Messoa”)	Prior to June 30, 2023, Messoa
	was a subsidiary of the Company.
	Starting June 30, 2023, Messoa
	became an associate of the Company.
Messoa Technologies Inc. (“Messoa USA”)	Prior to June 30, 2023, Messoa USA
	was a subsidiary of the Company.
	Starting June 30, 2023, Messoa USA
	became an associate of the Company.
Metaage Corporation (“MTG”)	The Company’s subsidiary
Global Intelligence Network Co., Ltd.	The Company’s subsidiary
Epic Cloud Co., Ltd.	The Company’s subsidiary
AdvancedTEK International Corp. (“AdvancedTEK”)	The Company’s subsidiary
Statinc Company (“Statinc”)	The Company’s subsidiary
APEO Human Capital Services Corp.	The Company’s subsidiary
DKABio Co., Ltd.	The Company’s subsidiary
Golden Spirit Co., Ltd.	The Company’s subsidiary
Bigmin Bio-Tech Company Ltd.	The Company’s subsidiary
E-Strong Medical Technology Co., Ltd.	The Company’s subsidiary
Simula Technology Inc. (“Simula”)	The Company’s subsidiary
Aspire Asia Inc.	The Company’s subsidiary
Simula Technology Corp.	The Company’s subsidiary
Action Star Technology Co., Ltd. (“AST”)	The Company’s subsidiary

(Continued)

66

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

Name of related party

Simula Company Limited Aspire Electronics Corp. Opti Cloud Technologies, Inc. Simula Technology (ShenZhen) Co., Ltd. Alpha Networks Inc.(“Alpha”) Alpha Holdings Inc. (“Alpha Holdings”) Alpha Solutions Co., Ltd. (“Alpha Solutions”) Alpha Networks Inc. (“Alpha USA”) Alpha Technical Services Inc. (“ATS”) Alpha Networks (Hong Kong) Limited (“Alpha HK”) Alpha Networks Vietnam Company Limited Enrich Investment Corporation (“Enrich Investment”) Hitron Technologies Inc. (“Hitron Technologies”) D-Link Asia Investment Pte, Ltd. (“D-Link Asia”) Alpha Networks (Dongguan) Co., Ltd. (“Alpha DGF“) Alpha Networks (Chengdu) Co., Ltd. Alpha Networks (Changshu) Co., Ltd. (“Alpha CSF”) Mirac Networks (Dongguan) Co., Ltd. Alpha Networks (Changshu) Trading Co., Ltd. (“Alpha CST”) Hitron Technologies (Samoa) Inc. (“HSM”) Interactive Digital Technologies Inc. (“IDT”) Hitron Technologies Europe Holding B.V. (“HBV”) Hitron Technologies (Americas) Inc. (“HUS”) Innoauto Technologies Inc. (“HTG”) Hitron Technologies (Vietnam) Inc. (“HVN”) Hitron Technologies (SIP) Inc. (“HSZ”) Jietech Trading (Suzhou) Inc. (“HJT”) Hwa Chi Technologies (Shanghai) Inc. (“IHC”) Transnet Corporation (“Transnet”) Aespula Technologies Inc. (“APL”) AU Optronics Corp. (“AU”)

Darfon Electronics Corp. (“DFN”) Visco Vision Inc. (“Visco Vision”) Q.S.Control Corp. (“Q.S.C”) Nanjing Silvertown Health & Development Co., Ltd. (“NSHD”) Jiangsu Yudi Optical Co., Ltd. (“Yudi”)

Relationship with the Company

The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary

The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary AU accounted for its shareholder in the Company using the equity method.

The Company’s associate The Company’s associate The Company’s associate The Company’s associate

The Company’s associate

(Continued)

67

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

Name of relatedparty	Relationship with the Company
Darwin Precisions Corporation (“Darwin Precisions”)	AU’s subsidiary
AUO (Kunshan) Co., Ltd. (“AUOKS”)	AU’s subsidiary
a.u. Vista Inc. (“AUVI”)	AU’s subsidiary
AUO (Suzhou) Co., Ltd. (“AUOSZ”)	AU’s subsidiary
AUO (Slovakia) s.r.o. (“AUOSK”)	AU’s subsidiary
AUO Crystal Corp. (“ACTW”)	AU’s subsidiary
AUO Display Plus Corporation (“ADP”)	AU’s subsidiary
AUO Education Service Corp.	AU’s subsidiary
Darad Innovation Corporation	DFN’s subsidiary
Astro Tech Co., Ltd.	DFN’s subsidiary
Unictron Technologies Corporation	DFN’s subsidiary
BenQ Foundation	Substantive related party

(b) Significant related-party transactions

(i) Revenue

Revenue
2023 Subsidiaries: QALA $ 18,995,649 BenQ 4,053,493 QJTO 2,733,421 Other subsidiaries 535,162 26,317,725 Associates 13,500 The entity who has significant influence over the Company: AU 2,259,226 AUOSZ 1,305,361 Others 334,971 3,899,558 $ 30,230,783	2022
	23,684,932 5,286,599 2,856,971 1,255,815
	33,084,317
	3,095
	3,923,712 1,223,152 334,573
	5,481,437
	38,568,849

There were no significant differences between the sales prices for related parties and those for third-party customers. The payment terms of 30~120 days showed no significant difference between related parties and third-party customers, which were subject to payment extension taking into account the market conditions for subsidiaries.

The Company sold raw materials and work in process to its subsidiaries for reprocessing, and the related finished goods were resold back to the Company. For this reason, the Company offset the recognized revenues and costs from these transactions, which amounted to $9,072,799 and $14,324,438, for the years ended December 31, 2023 and 2022, respectively.

(Continued)

68

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

(ii) Purchases

2023 Subsidiaries: QCSZ $ 50,122,958 QCOS 11,684,637 Other subsidiaries 1,402,706 63,210,301 Associates 4,915 The entity who has significant influence over the Company 131,906 $ 63,347,122	2022
	70,821,473 18,096,303 1,346,939
	90,264,715 8,546 -
	90,273,261

There were no significant differences between the purchase prices for related parties and those for third-party vendors. The payment terms of 30~120 days showed no significant difference between related parties and third-party vendors.

(iii) Lease

The Company leased its office and plant to its related parties. In 2023 and 2022, the related rental income from subsidiaries amounted to $116,624 and $109,656, respectively, and from associates amounted to $3,608 and $3,332, respectively, recognized as the non-operating － income and loss other income. The related receivables were classified as other receivables from related parties.

The Company leased factory from AU, and the rent is paid monthly with reference to the nearby office rental rates. Additions to right-of-use assets amounted to $9,901 in 2023. For the years ended December 31, 2023 and 2022, the related interest expense on lease liabilities amounted to $44 and $81, respectively. As of December 31, 2023 and 2022, the balance of the lease liability amounted to $9,497 and $4,621, respectively.

(iv) Repair service

The Company’ s subsidiaries provided repair service to the Company. These subsidiaries charged the Company for their repair service based on the actual costs of services rendered. For the years ended December 31, 2023 and 2022, the repair service fees amounted to $12,780 and $13,794, respectively, recognized as operating costs. The related payables were fully paid.

(Continued)

69

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

(v) Donation

For the years ended December 31, 2023 and 2022, the Company made a donation to a substantive related party, BenQ Foundation, amounting to $6,500 and $10,000, respectively.

(vi) Property transactions

In 2023, the Company bought machinery from subsidiaries at a price of $2,380.

(vii) Guarantees

For the years ended December 31, 2023 and 2022, the Company provided guarantees in order to apply for foreign exchange credit line for its subsidiaries amounting to $2,337,000 and $3,257,380, respectively.

(viii) Receivables from related parties

Account	Related-party categories Subsidiaries: QALA BenQ QJTO Other subsidiaries Associates The entity who has significant influence over the Company: AU AUOSZ Others Subsidiaries The entity who has significant influence over the Company	December 31, 2023 $ 10,528,447 1,469,264 1,103,506 85,667 13,186,884 881 176,694 556,578 191,728 925,000 $ 14,112,765 $ 5,675 1,042 $ 6,717	December 31, 2022
Accounts receivable from related parties Other receivables from related parties			8,843,188 609,277 987,993 210,784
			10,651,242
			1,680
			395,800 405,225 120,590
			921,615
			11,574,537
			10,007 -
			10,007

(Continued)

70

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

(ix) Payables to related parties

Account Related party categories Accounts payable Subsidiaries: to related parties QCSZ QCES QCOS Other subsidiaries Associates The entity who has significant influence over the Company Compensation for key management personnel Short-term employee benefits Post-employment benefits	December 31, 2023 $ 16,925,223 1,973,219 5,535,436 126,160 10,975 24,571,013 149 $ 24,571,013 2023 $ 256,768 1,080 $ 257,848	December 31, 2022
		12,808,684 924,774 3,725,595 357,164 9,154
		17,825,371
		102
		17,825,473
		2022
		310,967 1,152
		312,119

(c) Compensation for key management personnel

8. Pledged assets

The carrying amounts of the assets pledged as collateral are detailed below:

Pledged assets Land and buildings	Pledged to secure Credit lines of bank loans	December 31, 2023 $ 1,207,760	December 31, 2022
			1,234,810

(Continued)

71

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

9. Significant commitments and contingencies

In addition to those in note 7, the Company had the following commitments and contingencies:

• (a) Significant unrecognized commitments

Unused letters of credit	December 31, 2023 $ 492,000	December 31, 2022 215,110

• (b) Significant contingent liabilities

In January 2012, some direct and indirect Canadian purchasers of optical disk drive products filed class actions against the Company and BQA, among other co-defendants. In the complaints, the plaintiffs claimed monetary damages from an alleged antitrust conspiracy. The Company has reached a settlement agreement with the plaintiff, and the settlement had been approved by the Court; therefore, the case was closed.

10. Significant loss from disaster: None.

11. Significant subsequent events: None.

12. Others

A summary of employee benefits, depreciation, and amortization, by function, is as follows:

	2023	2023	2023	2022	2022	2022	2022	2022
	Cost of sales	Operating expenses	Total	Cost of sales		Operating expenses		Total
Employee benefits: Salaries Insurance Pension Remuneration to directors Others Depreciation Amortization	443,769 32,750 14,352 - 33,192 119,940 44,720	2,469,314 155,507 83,642 34,348 137,772 203,645 23,054	2,913,083 188,257 97,994 34,348 170,964 323,585 67,774	592,984 36,615 18,314 - 47,223 82,539 40,045		2,858,051 157,179 81,690 39,261 158,992 199,020 24,913		3,451,035 193,794 100,004 39,261 206,215 281,559 64,958
The number of employees The number of non-employee directors Average employee benefits Average employee salaries Average employee salaries adjustment rate Supervisors’ remuneration							2022 1,773 6 2,236 1,953 % 6.60 -

(Continued)

72

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

The Company’s salary and remuneration policies (including directors, managers and employees) were as follows:

• (a) Directors:

• (i) The remuneration to directors is stipulated and distributed according to the Company’ s Articles of Incorporation, authorizing the Board of Directors to determine the remuneration based on the participation and contribution of each director, as well as “Remuneration Policy to the Directors and Functional Committee Members” which is in reference to domestic and overseas industry norms. If there is earnings, the remunerations to directors is approved by the Board of Directors according to the Company's Articles of Incorporation.

• (ii) The remunerations to directors is in accordance with the Company’s Articles of Incorporation and Remuneration Policy, and is reviewed by the Remuneration Committee and approved by the Board of Directors.

(b) Managers:

The remuneration to managers is in accordance with the Company’s personnel rules with reference to the industry norms, individual performance and the Company’s overall operating performance, and is reviewed by the Salary and Remuneration Committee and approved by the Board of Directors.

• (c) Employees:

• (i) The Company provides diversified and competitive overall remuneration and career development opportunities. Apart from basic salary (including principal salary, meal allowance, etc.), various allowances and rewards, such as work allowances, duty allowances, performance bonuses, incentive bonuses and remuneration to employees based on the Company’s annual profit, are designed for difference job nature and reward purpose.

• (ii) The Company annually participates in the international market salary surveys, wherein it adjust the salary based on the salary benchmark of each job and individual performance to sustain its market competitiveness. Under the premise of enhancing the Company's overall operations and performance through teamwork and individual effort, the Company designs various short term or long term reward plans and profit sharing with employees to achieve the purpose of talent attraction, retention, motivation and programmatic cultivation of high quality talents.

• (iii) The salary and bonus for employees is in accordance with the Company’s personnel rules. The remuneration to employees is in accordance with Company’s Articles of Incorporation, and is approved by the Board of Directors and reported to shareholders meeting.

(Continued)

73

QISDA CORPORATION Notes to Financial Statements

13. Additional disclosures

• (a) Information on significant transactions:

• (i) Financing provided to other parties: Table 1 (attached)

• (ii) Guarantees and endorsements provided to other parties: Table 2 (attached)

• (iii) Marketable securities held at the reporting date (excluding investments in subsidiaries, associates, and joint ventures): Table 3 (attached)

• (iv) Marketable securities for which the accumulated purchase or sale amounts for the year exceed $300 million or 20% of the paid-in capital: Table 4 (attached)

• (v) Acquisition of real estate which exceeds $300 million or 20% of the paid-in capital: Table 5 (attached)

• (vi) Disposal of real estate which exceeds $300 million or 20% of the paid-in capital: None

• (vii) Total purchases from and sales to related parties which exceed $100 million or 20% of the paid-in capital: Table 6 (attached)

• (viii) Receivables from related parties which exceed $100 million or 20% of the paid-in capital: Table 7 (attached)

• (ix) Transactions about derivative instruments: Please refer to note 6(b)

• (b) Information on investees: Table 8 (attached)

• (c) Information on investment in Mainland China: Table 9 (attached)

• (d) Major shareholders:

Shareholding Shareholder’s Name	Shares	Percentage
AU Optronics Corp.	335,230,510	% 17.04

14. Segment information

Please refer to the consolidated financial statements for the year ended December 31, 2023.

QISDA CORPORATION

Financing provided to other parties For the year ended December 31, 2023

(Amounts in thousands of New Taiwan dollars and other currencies)

(Amounts in thousands of New Taiwan dollars and other currencies) QISDA CORPORATION Financing provided to other parties For the year ended December 31, 2023	(Amounts in thousands of New Taiwan dollars and other currencies) QISDA CORPORATION Financing provided to other parties For the year ended December 31, 2023	(Amounts in thousands of New Taiwan dollars and other currencies) QISDA CORPORATION Financing provided to other parties For the year ended December 31, 2023	(Amounts in thousands of New Taiwan dollars and other currencies) QISDA CORPORATION Financing provided to other parties For the year ended December 31, 2023	(Amounts in thousands of New Taiwan dollars and other currencies) QISDA CORPORATION Financing provided to other parties For the year ended December 31, 2023	(Amounts in thousands of New Taiwan dollars and other currencies) QISDA CORPORATION Financing provided to other parties For the year ended December 31, 2023	(Amounts in thousands of New Taiwan dollars and other currencies) QISDA CORPORATION Financing provided to other parties For the year ended December 31, 2023	(Amounts in thousands of New Taiwan dollars and other currencies) QISDA CORPORATION Financing provided to other parties For the year ended December 31, 2023	(Amounts in thousands of New Taiwan dollars and other currencies) QISDA CORPORATION Financing provided to other parties For the year ended December 31, 2023	(Amounts in thousands of New Taiwan dollars and other currencies) QISDA CORPORATION Financing provided to other parties For the year ended December 31, 2023	(Amounts in thousands of New Taiwan dollars and other currencies) QISDA CORPORATION Financing provided to other parties For the year ended December 31, 2023	(Amounts in thousands of New Taiwan dollars and other currencies) QISDA CORPORATION Financing provided to other parties For the year ended December 31, 2023	(Amounts in thousands of New Taiwan dollars and other currencies) QISDA CORPORATION Financing provided to other parties For the year ended December 31, 2023
Table1
No.	Name of Lender	Name of Borrower	Financial Statement Account	Is a Related Party	Highest Balance of Financing to Other Parties During the Period	Ending Balance	Actual Usage Amount During the Period	Range of Interest Rates During the Period	Purpose of Fund Financing for the Borrower	Transaction Amounts	Reasons for Short-term Financing	Allowance for Bad Debt	Collateral		Finanacing Limits for Each Borrowing Company	Financing Company's Total Financing Amounts Limits
													Item	Value
21 22 13 20 17 19 18 14 15 11 11 12 8 5 7 1 3 1 1 2 1 8 4 6 16 8 9 9 10	Enrich MTG Alpha HK K2 International Medical Inc Cyber South Alpha CD Darshin Materials Medical Supplies (Suzhou) Co., Ltd. Proton Hitron ACE ACE AEWIN BIC QCOS BBM NMHC BenQ QLLB BenQ BenQ Darly 2 BenQ QCOS QLPG Alpha QCOS BMS BMS WPC	Transnet Corporation Corex (Pty) Ltd. Darly Venture (L) Ltd Alpha CSF K2 Medical (Thailand) Co. Ltd Tianjin Ace Pillar Co., Ltd. Alpha CSF BenQ Materials Medical Supplies (Suzhou) Co., Ltd. Tianjin Ace Pillar Co., Ltd. HVN Suzhou Super Pillar Automation Equipment Co., Ltd. Tianjin Ace Pillar Co., Ltd. Aewin Beijing Technologies Co., Ltd. Suzhou BenQ Hospital Co., Ltd. (“SMH”) Qisda (Shanghai) Co., Ltd.(“QCSH”) Nanjing BenQ Hospital Co., Ltd.(“NMH”) Nanjing BenQ Hospital Co., Ltd.(“NMH”) BQL Qisda (Shanghai) Co., Ltd.(“QCSH”) APV APV QLLB BenQ Guru Software Co., Ltd.(“GSS”) QLLB Alpha VN BenQ Medical (Shanghai) Co., Ltd.(“BMSH”) BenQ Meterials (Wuhu) Co., Ltd. BenQ Materials Medical Supplies (Suzhou) Co., Ltd. Web-Pro(Vietnam)Co.,Ltd	Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties	Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes	562,590 312,550 300,000 1,257,760 100,000 1,880,650 21,233 822,960 22,265 21,820 89,060 22,265 44,313 1,180,045 444,170 860,000 354,504 173,212 249,699 1,098,962 267,180 933,000 622,000 22,698 12,970 22,209 81,063 15,000 156,275	276,750 153,750 - - 100,000 1,783,500 - 215,250 21,682 20,381 86,728 - 21,682 1,149,146 433,640 215,250 195,138 86,728 200,885 1,075,427 260,184 - 307,500 21,525 12,300 21,682 76,875 15,000 153,750	276,750 153,750 - - 100,000 1,783,500 - 215,250 21,682 20,381 86,728 - 21,682 881,590 86,294 123,000 151,774 30,355 200,885 1,075,427 260,184 - - 21,525 12,300 16,045 61,500 15,000 87,821	6.30% 1.65% - - - 1.75% 0%~4.55% - - 1.00% 0.75% 1.00% 3.20% 2.00% 1.00% 1.30% 1.30% - - 3.30% 1.00% 1.30% 3.30% 0.50% 0.50% 3.00% - 3.00%~5.50% 1.00%~2.87%	2 2 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2	- - 286,858 - - - - - - - - - - - - - - - - - - - - - - - - - -	Operating requirements Operating requirements Operating requirements Business transaction Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements	- - - - - - - - - - - - - - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - - - - - - - - - - - - - -	37,864 890,197 62,591 3,618,314 3,618,314 2,544,782 7,411,472 3,618,314 6,653,776 3,705,736 3,705,736 3,705,736 21,927 335,275 1,907,217 1,907,217 393,775 393,775 251,205 417,001 2,273,145 2,002,544 463,192 983,900 1,754,868 3,618,314 126,898 537,147 630,668	37,864 1,780,394 125,183 6,653,776 3,618,314 3,618,314 37,057,358 37,057,358 37,057,358 14,822,943 2,544,782 21,927 335,275 1,907,217 1,907,217 787,550 787,550 502,411 417,001 2,273,145 4,005,088 463,192 253,796 1,967,801 537,147 3,618,314 1,754,868 3,618,314 1,261,337

～ 74 ～

(Note 1)The aggregate financing amount and the individual financing amount of BenQ to subsidiaries shall not exceed 40% of the most recent net worth of BenQ. (Note 2)The aggregate financing amount and the individual financing amount of Darly 2 to subsidiaries shall not exceed 40% of the most recent net worth of Darly 2. (Note 3)The aggregate financing amount and the individual financing amount of QLLB to subsidiaries shall not exceed 40% of the most recent net worth of QLLB. (Note 4)The aggregate financing amount and the individual financing amount of QLPG to subsidiaries shall not exceed 40% and 20%, respectively, of the most recent audited and reviewed net worth of the Company. (Note 5)The aggregate financing amount and the individual financing amount of BBM to subsidiaries shall not exceed 40% of the most recent net worth of BBM. (Note 6)The aggregate financing amount and the individual financing amount of BIC to subsidiaries shall not exceed 40% of the most recent net worth of BIC. (Note 7)The aggregate financing amount and the individual financing amount of NMHC to subsidiaries shall not exceed 100% of the most recent net worth of NMHC. (Note 8)The aggregate financing amount to subsidiaries wholly owned by the Company and the individual financing amount of QCOS shall not exceed 100% and 10%, respectively, of the most recent net worth of the Company. The financing amount to the subsidiaries not wholly owned by the Company and the individual financing amount of QCOS shall not exceed 40% of the most recent net worth of QCOS. (Note 9)The aggregate financing amount to subsidiaries wholly owned by BMC and the individual financing amount of BMS shall not exceed 100% of the most recent audited and reviewed net worth of BMS. (Note 10)The aggregate financing amount and the individual financing amount of WPC to subsidiaries shall not exceed 40% and 20%, respectively, of the most recent net worth of WPC. (Note 11)The aggregate financing amount and the individual financing amount of ACE to subsidiaries shall not exceed 40% and 20%, respectively, of the most recent net worth of ACE.

• (Note 12)The aggregate financing amount and the individual financing amount of AEWIN to subsidiaries shall not exceed 40% and 20%, respectively, of the most recent net worth of AEWIN.

• (Note 13)The aggregate financing amount to foreign subsidiaries wholly owned by Alpha and the individual financing amount of Alpha HK shall not exceed 100% of the most recent net worth of Alpha HK. (Note 14)The aggregate financing amount to foreign subsidiaries wholly owned by Alpha and the individual financing amount of Alpha CD shall not exceed 100% of the most recent net worth of Alpha CD. (Note 15)The aggregate financing amount of Hitron and its subsidiaries to subsidiaries shall not exceed 40% of the the most recent audited or reviewed net worth of both parties. The financing reason and limit for each type of party is stated as below. a.For entities who have business transactions with Hitron, the individual financing amount shall not exceed 20% of the most recent net worth of Hitron in the nearest 12 months. The transaction referring to the higher of sales or purchase amount. b.For entities who have a need in short-term financing, the individual financing amount shall not exceed 20% of the most recent audited and reviewed net worth of Hitron Technologies.

c.Financing among foreign subsidiaries which Hitron has 100% of direct or indirect voting rights, or foreign subsidiaries which Hitron has 100% of direct or indirect voting rights financing to Hitron, there is no limit to the financing amount and period of lending, but should state the financing limit and term of lending.

• (Note 16)The aggregate financing amount and the individual financing amount of Alpha to other parties shall not exceed 40% and 20%, respectively, of the most recent net worth of Alpha.

• (Note 17)The aggregate financing amount and the individual financing amount of Cyber South to subsidiaries shall not exceed 10% and 5%, respectively, of the most recent net worth of Cyber South. For financing among foreign subsidaries wholly owned by ACE because of financing purpose,the aggregate financing amount and the individual financing amount shall not exceed 100% of most recent net worth of Cyber South. (Note 18)The aggregate financing amount and the individual financing amount of Proton to subsidiaries shall not exceed 10% and 5%, respectively, of the most recent net worth of Proton. For financing among foreign subsidaries wholly owned by ACE because of financing purpose,the aggregate financing amount and the individual financing amount shall not exceed 100% of most recent net worth of Proton. (Note 19)The aggregate financing amount to subsidiaries wholly owned by BMC and the individual financing amount of DTB shall not exceed 100% of the most recent audited and reviewed net worth of DTB. (Note 20)The aggregate financing amount and the individual financing amount of K2 to subsidiaries shall not exceed 40% and 20%, respectively, of the most recent net worth of K2. (Note 21)The aggregate financing amount and the individual financing amount of Enrich to subsidiaries shall not exceed 40% and 20%, respectively, of the most recent net worth of Enrich.

• (Note 22)The aggregate financing amount and the individual financing amount of MTG to subsidiaries shall not exceed 40% and 20%, respectively, of the most recent net worth of MTG.

• (Note 23)Purpose of Fund Financing: 1.Business transaction purpose. 2. Short-term financing purpose.

～ 75 ～

QISDA CORPORATION

Guarantees and endorsements provided to other parties

For the year ended December 31, 2023

(Amounts in thousands of New Taiwan dollars and other currencies)

Table 2

No.	Endorsements / Guarantee Provider	Counter-party of Guarantee and Endorsement	Counter-party of Guarantee and Endorsement	Limits on Amount of Guarantees and Endorsements Provided to Each Guaranteed Party	Highest Balance of Guarantees and Endorsements During the Period	Balance of Guarantees and Endorsements as of Reporting Date	Actual Usage Amount During the Period	Property Pledged for Guarantees and Endorsements	Ratio of Accumulated Amounts of Guarantees and Endorsements to Net Worth of the Latest Financial Statements	Maximum Amounts for Guarantees and Endorsements	Gaurantee Provided by Parent Company	Gaurantee Provided by A Subsidiary	Endorsements / Guarantees Provided to Subsidiaries in Mainland China
		Name	Relationship with the Company
3 4 2 2 1 2 2 2 0 6 5 5 5 4	Alpha DIC PTT PTT BenQ PTT PTT PTT The Company MTG Hitron Alpha Hitron Hitron	Alpha DGF Data Image (Suzhou) Corporation Webest Solution Corporation Partner Tech (Shanghai) CO., Ltd. MaxGen Partner Tech USA Inc. Partner Tech Middle East FZCO Partner-Tech Europe GmbH QLLB Corex (Pty) Ltd. HVN Alpha CSF HUS HBV	Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary	5,006,361 296,702 231,987 231,987 1,809,157 231,987 231,987 231,987 7,411,472 890,197 4,919,502 4,919,502 5,006,361 4,919,502	5,109,480 114,647 188,664 123,000 61,500 32,425 10,000 62,510 64,850 226,975 631,113 615,600 2,554,740 618,825	3,751,500 101,184 92,250 61,500 30,750 30,750 10,000 30,750 61,500 215,250 - - - 611,250	2,337,000 101,184 92,250 61,500 30,750 - 10,000 6,174 - 16 - - - 297,595	- - - - - - - - - - - - - -	0.61% 2.07% 0.86% 2.65% 1.12% 2.65% 7.95% 5.30% 10.12% - - 13.73% - 2.15%	10,012,721 741,756 579,969 579,969 579,969 579,969 9,045,786 579,969 18,528,679 7,379,253 7,379,253 7,379,253 2,225,493 10,012,721	N N N N N N N N N Y N N N N	- - - - - - - - - - - - - -	Y Y Y - - - - - - - - - - -

(Note 1)The aggregate endorsement/guarantee amount provided by the Company to QLLB and the endorsement/guarantee amount provided to individual party shall not exceed 50% and 20%, respectively, of the most recent audited or reviewed net worth of the Company. (Note 2)The aggregate endorsement/guarantee amount provided by BenQ to MaxGen and the endorsement/guarantee amount provided to individual party shall not exceed 100% and 20%, respectively, of the net worth of BenQ.

(Note 3)The aggregate endorsement/guarantee amount provided by PTT to PTT 's subsidiaries and the endorsement/guarantee amount provided to individual party shall not exceed 50% and 20%, respectively, of the net worth of PTT.

(Note 4)The aggregate endorsement/guarantee amount provided by DIC to Data Image (Suzhou) Corporation and the endorsement/guarantee amount provided to individual party shall not exceed 50% and 20%, respectively, of the net worth of DIC.

(Note 5)The aggregate endorsement/guarantee amount provided by Alpha to Alpha's subsidiaries and the endorsement/guarantee amount provided to individual party shall not exceed 100% and 50%, respectively, of the net worth of Alpha.

(Note 6)The aggregate endorsement/guarantee amount provided by Hitron to Hitrons’subsidiaries and the endorsement/guarantee amount provided to individual party shall not exceed 150% and 20%, respectively, of the net worth of Hitron. However, there is no restriction for those directly or indirectly held subsidiaries with more than 50% of the voting shares and for those directly and indirectly hold 100% of the voting shares are indirectly endorsed and guaranteed, but it shall not exceed Hitron 100% of net worth of the most recent financial statements.

(Note 7)The aggregate endorsement/guarantee amount provided by MTG to Corex and the endorsement/guarantee amount provided to individual party shall not exceed 50% and 20%, respectively, of the most recent audited or reviewed net worth of MTG.

～ 76 ～

Table 3

QISDA CORPORATION

Marketable securities held (excluding investments in subsidiaries, associates, and joint ventures) For the year ended December 31, 2023

(Amounts in thousands of New Taiwan dollars, unless specified otherwise)

Investing Company	Marketable Securities Type and Name	Relationship withthe Securities Issuer	Financial Statement Account	December 31, 2023	December 31, 2023	December 31, 2023	December 31, 2023
				Shares/Units	Carrying Value	Percentage of Ownership	Fair Value	Note
The Company The Company The Company The Company The Company QLLB BMC BMC BMC BMC APV APV APV APV APV APV APV	Stock: APLEX Technology, Inc. Stock: AU Stock: TXOne Networks Inc. Stock: SCT Holdings, Ltd. Stock: ITH Corp. CPEC Huachuang Private Equity Fund (Fujian) Co., Ltd. Fund Stock: Lagis Enterprise Co., Ltd. Stock: YiLeLaFa Corporation Stock: Biodenta Corporation Stock: CUUMed Catheter Medical Co., Ltd. Stock: Hi-Clearance Inc. Stock: Joymaster Inc. Stock: Crystalvue Medical Corp. Stock: Gigastone Corporation Stock: Athena Capital Management Stock: CDIB Capital Innovation Advisors Corporation Stock: D8AI , Inc.	- - - - - - - - - - - - - - - - -	Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through profit or loss-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through profit or loss-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current	1,388 530,879 909 800 3,000 - 1,680 300 225 3,429 340 619 706 31 2,000 2,717 19,500	72,150 9,635,452 (Note 1) 2,134 96,126 41,448 63,840 1,929 (Note 1) 94,078 46,081 (Note 1) 61,176 1,221 10,885 12,197 3,032	3.74% 6.90% 1.75% 2.44% 0.66% 2.50% 5.25% 2.73% 2.50% 8.76% 0.76% 6.19% 2.77% 0.06% 6.17% 3.33% 10.76%	72,150 9,635,452 - 2,134 96,126 41,448 63,840 1,929 - 94,078 46,081 - 61,176 1,221 10,885 12,197 3,032	- - - - - - - - - - - - - - - - -

～ 77 ～

Investing Company	Marketable Securities Type and Name	Relationship withthe Securities Issuer	Financial Statement Account	December 31, 2023	December 31, 2023	December 31, 2023	December 31, 2023
				Shares/Units	Carrying Value	Percentage of Ownership	Fair Value	Note
APV APV APV Darly 2 Darly 2 Darly 2 Darly 2 Darly 2 Darly 2 Darly 2 Darly 2 Darly 2 Darly 2 Darly C Darly C Darly C Darly C BenQ PTT DFI	Stock: APLEX Technology, Inc. Stock: Raydium Semiconductor Corporation Stock: PlayNitride Inc. Affinity Health Fund Two, L.P. Stock: InnoFund V Co., Ltd. Stock: Crystalvue Medical Corp. Stock: Raydium Semiconductor Corporation Stock: Fong Huang Innovation Corporation Stock: Fong Huang 2 Innovation Corporation Stock: Fong Huang 3 Innovation Corporation Stock: Fong Huang 4 Innovation Corporation Affinity Health Fund One, L.P. JAFCO Taiwan II Venture Capital Limited Partnership Stock: Crystalvue Medical Corp. Stock: Athena Capital Management Stock: Anqing Innovation Stock: Visco Vision Inc. Stock: GT Booster Corp. Stock: D8AI , Inc. Stock: APLEX Technology, Inc.	- - - - - - - - - - - - - - - - - - - -	Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through profit or loss-non-current Financial assets at fair value through profit or loss-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current	2,144 2,300 453 (Note 2) 3,000 494 993 6,000 3,000 3,000 3,000 (Note 2&3) (Note 2&3) 36 1,000 1,033 285 63 4,200 1,487	111,512 921,055 44,756 28,121 30,000 42,786 397,515 71,132 34,658 33,960 37,253 20,536 26,503 3,095 5,442 5,474 61,832 15,651 2,309 77,314	5.78% 3.03% 0.42% 1.45% 7.03% 1.94% 1.31% 18.75% 7.01% 13.04% 12.77% 2.00% 4.81% 0.14% 3.09% 2.24% 0.45% 8.00% 2.32% 4.01%	111,512 921,055 44,756 28,121 30,000 42,786 397,515 71,132 34,658 33,960 37,253 20,536 26,503 3,095 5,442 5,474 61,832 15,651 2,309 77,314	- - - - - - - - - - - - - - - - - - - -

～ 78 ～

Investing Company	Marketable Securities Type and Name	Relationship withthe Securities Issuer	Financial Statement Account	December 31, 2023	December 31, 2023	December 31, 2023	December 31, 2023
				Shares/Units	Carrying Value	Percentage of Ownership	Fair Value	Note
DFI AEWIN AEWIN STC STC MTG MTG MTG MTG MTG MTG MTG MTG MTG Simula Simula Simula GSC Alpha	Fund: Cathay No 1 REIT Stock: Aewin Korea Technologies Co., Ltd. Stock: AuthenTrend Technology Inc. Stock: Intelligent fluids GmbH Stock: COMPITEK CORP PTE LTD. (CPL) Stock: CDS Holdings Limited Stock: Yobon Technologies, Inc. Stock: Dynasafe Technologies, Inc. Stock: Touch Cloud, Inc. Stock: Gemini Data, Inc. Stock: Kingtel Corporation Limited Partnership Equity: Taiwania Capital Buffalo Fund V ,LP. Limited Partnership Equity: New Economy Ventures L.P. Stock: High Performance Information Co., Ltd. Stock: Optomedia Technology Inc. Stock: Taiwan Competition Co., Ltd. Stock: Mcurich Inc. Stock: New Image Medical Co.,Ltd. Stock: TGC, Inc.	- Substantive related party - - - - - - - - - - - - - - - - -	Financial assets at fair value through profit or loss-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through profit or loss-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through profit or loss-non-current Financial assets at fair value through profit or loss-non-current Financial assets at fair value through profit or loss-non-current Financial assets at fair value through profit or loss-non-current Financial assets at fair value through profit or loss-non-current Financial assets at fair value through profit or loss-non-current Financial assets at fair value through profit or loss-non-current Financial assets at fair value through profit or loss-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through profit or loss-non-current	1,442 10 300 27 36 600 3 4,404 200 2,706 443 (Note 2) (Note 2) 2,138 265 500 645 200 500	24,485 745 (Note 1) (Note 1) 8,655 (Note 1) (Note 1) 453,931 (Note 1) (Note 1) (Note 1) 197,658 41,468 118,189 2,411 1,447 (Note 1) 2,960 (Note 1)	- 16.67% 1.42% 1.71% 6.28% 1.11% 0.42% 19.15% 1.50% 1.12% 18.09% 12.78% 7.36% 8.36% 3.26% 16.67% 15.12% 0.74% 1.83%	24,485 745 - - 8,655 - - 453,931 - - - 197,658 41,468 118,189 2,411 1,447 - 2,960 -	- - - - - - - - - - - - - - - - - - -

～ 79 ～

Investing Company	Marketable Securities Type and Name	Relationship withthe Securities Issuer	Financial Statement Account	December 31, 2023	December 31, 2023	December 31, 2023	December 31, 2023
				Shares/Units	Carrying Value	Percentage of Ownership	Fair Value	Note
Alpha Hitron Hitron Hitron Hitron Hitron Hitron Hitron Hitron DIVA DIVA DIVA CKCARE	Ignition Ventures Limited Partnership Stock: Senao International Co., Ltd. Stock: Chao Long Motor Parts Corp. Stock: Imagetech Co., Ltd. Stock: Tsunami Visual Technologies, Inc. Stock: Pivot Technology Corp. Stock: Cardtek Technology Co., Ltd. Stock: Yesmobile Holdings Company Ltd. Preferred Stock: Codent Networks (Cayman) Ltd. Stock: Insight Genomics Inc. Stock: Renown Information Technology Corp. Stock: Pharmally International Holding Co. Ltd. Stock: Pchain Biotechnology Corp.	- - - - - - - - - - - - -	Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through profit or loss-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through profit or loss-non-current Financial assets at fair value through other comprehensive income-non-current	(Note 2&3) 152 668 120 1,220 198 1,000 294 1,570 600 240 150 9	31,429 5,989 51,152 (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) 2,778 1,834 (Note 1) 123	- 0.06% 1.79% 1.20% 9.34% 10.94% 6.45% 0.75% - 6.40% 4.80% - 0.10%	31,429 5,989 51,152 - - - - - - 2,778 1,834 - 123	- - - - - - - - - - - - -

(Note 1)The impairment loss was fully recognized.

(Note 2)There was no shares as the company is a limited partnership.

(Note 3)In accordance with the Q&A of the FSC , the accounting treatment need not be applied retrocactively to investments in limited partnerships prior to June 30, 2023 in accordance with the IFRS Q&A released by Accounting Research and Development Foundation on June 15, 2023. Therefore, the Group continues to measure its investments in limited partnerships as financial assets at fair value through other comprehensive income.

～ 80 ～

QISDA CORPORATION

Marketable securities for which the accumulated purchase or sale amount for the year exceed NT$300 million or 20% of the paid-in capital

For the year ended December 31, 2023

(Amounts in thousands of New Taiwan dollars, unless specified otherwise)

Table 4

Company name	Marketable Securities Type and Name	Financial Statement Account	Counter-Party	Name of Relationship	Beginning Balance	Beginning Balance	Purchase	Purchase	Disposal	Disposal	Disposal	Disposal	Ending Balance	Ending Balance
					Shares	Amount	Shares	Amount	Shares	Amount	Carrying Value	Gain (Loss) on Disposal	Shares	Amount (Note1)
The Company The Company The Company Alpha Alpha BMC WPC WPSG BMTC DFI MTG	Norbel K2 BBHC Alpha VN Alpha CD WPC WPSG WPVN K2 Brainstorm Brainstorm	Investment accounted for using equity method Investment accounted for using equity method Investment accounted for using equity method Investment accounted for using equity method Investment accounted for using equity method Investment accounted for using equity method Investment accounted for using equity method Investment accounted for using equity method Investment accounted for using equity method Investment accounted for using equity method Investment accounted for using equitymethod	- BMTC CDH Medical Services Limited - - - - - The Company and Darly 2 MTG DFI	- Parent/Subsidiary - Parent/Subsidiary Parent/Subsidiary - Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Other related party Other related party	- 6,997 47,970 - - - 15,000 - - 233 -	- 240,793 1,112,972 613,700 - - 393,845 367,385 - 533,367 -	10,000 - 60,585 - - 35,700 15,000 - 7,800 - 233	1,800,000 - 6,285,683 492,368 453,169 3,161,999 444,425 465,103 390,000 - 530,075	- 6,997 - - - - - - - 233 -	- 349,853 - - - - - - - 530,075 -	- 231,331 - - - - - - - 540,240 (6,869)	- - - - - - - - - - -	10,000 - 108,555 - - 35,700 30,000 - 7,800 - 233	1,710,470 - 2,816,442 929,750 463,192 2,908,093 765,713 758,203 284,704 - 523,206

(Note 1) The ending balance includes shares of profits/losses of investees and other related adjustment.

～ 81 ～

QISDA CORPORATION

Acqusition of real estate which exceeds NT$300 million or 20% of the paid-in capital For the year ended December 31, 2023

(Amounts in thousands of New Taiwan dollars, unless specified otherwise)

Table 5

Company Name	Property Name	Transaction Date	Transaction amount	Status of Payment	Counter Party	Relationship with the Counter Party	If the Counter Party is a Related Party, Disclose the Previous Transfer Information	If the Counter Party is a Related Party, Disclose the Previous Transfer Information	If the Counter Party is a Related Party, Disclose the Previous Transfer Information	If the Counter Party is a Related Party, Disclose the Previous Transfer Information	Price Reference	Purpose of Acqusition and Current Condition	Notes
							Owner	Relationship with the Company	Date of Transfer	Amount
BMC	Buildings	Contract date: July 31, 2023	669,900 (Tax included)	Not yet paid	GO-IN Engineering Co., Ltd.	Not applicable	-	-	-	-	Inquiry and bargaining	Additional constructions in Yunlin factory for production and operation	-

～82～

QISDA CORPORATION

Total purchases from and sales to related parties which exceed NT$100 million or 20% of the paid-in capital For the year ended December 31, 2023

(Amounts in thousands of New Taiwan dollars, unless specified otherwise)

Table 6

Table 6
Company Name	Related Party	Nature of Relationship	Transaction Detail				Transactions with Terms Different from Others		Notes/Accounts Receivable or (Payable)
			Purchases/ (Sales)	Amount	% of Total Purchases/(Sales)	Payment Terms	Unit Price	Payment Terms	Ending Balance	% of Total Note/ Accounts Receivable or (Payable)	Note
The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company QCSZ QCSZ QCSZ QCSZ QCES QCOS QCOS QCOS QCOS QCOS QCOS QCPS QCPS QALA QJTO QVH BenQ BenQ BenQ BenQ BenQ BenQ BenQ BenQ BQA BQA BQA BQC_RO BQC_RO BQC_RO BQC_RO BQE BQE BQE BQE BQE BQE BQE	BenQ QJTO QALA AU AUOSZ AUOKS DFI QCSZ QCOS QVH AU The Company BQC_RO QCPS AU QCOS The Company BQC_RO AUOXM QCES QCPS AU QCSZ QCOS The Company The Company The Company BQA BQC_RO BQHK_HLD BQE BQL BQP The Company AU BQCA ZGC BenQ BQsha_EC2 QCOS QCSZ BenQ BQDE BQFR BQIT BQUK BQAT BQSE BQIB	Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary The entity who has significant influence over the Group The entity who has significant influence over the Group The entity who has significant influence over the Group Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary The entity who has significant influence over the Group Parent/Subsidiary Affiliates Affiliates The entity who has significant influence over the Group Affiliates Parent/Subsidiary Affiliates The entity who has significant influence over the Group Affiliates Affiliates The entity who has significant influence over the Group Affiliates Affiliates Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Parent/Subsidiary The entity who has significant influence over the Group Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates	(Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) Purchases Purchases Purchases Purchases (Sales) (Sales) Purchases Purchases (Sales) (Sales) (Sales) (Sales) Purchases Purchases Purchases (Sales) (Sales) Purchases Purchases (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) Purchases Purchases (Sales) (Sales) Purchases (Sales) Purchases Purchases Purchases (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales)	(4,053,493) (2,733,421) (18,995,649) (2,259,226) (1,305,361) (322,442) (187,561) 50,122,958 11,684,637 1,017,172 131,906 (50,122,958) (1,476,501) 1,171,120 3,182,072 (587,495) (11,684,637) (516,386) (452,389) 587,495 196,004 332,666 (1,171,120) (196,004) 18,995,649 2,733,421 (1,017,172) (2,085,110) (228,884) (120,875) (3,283,470) (644,117) (5,862,392) 4,053,493 1,227,387 (600,765) (609,322) 2,085,110 (191,538) 516,386 1,476,501 228,884 (904,208) (491,267) (172,134) (775,795) (685,928) (231,445) (222,704)	(5) (4) (25) (3) (2) - - 70 16 1 - (85) (2) 2 6 (7) (86) (4) (3) 4 1 3 (80) (13) 100 100 (92) (17) (2) (1) (27) (5) (48) 36 11 (13) (13) 58 (4) 17 50 8 (20) (11) (4) (17) (15) (5) (5)	OA90 OA120 OA90 OA120 OA120 OA120 60~90 Days OA120 OA120 OA60 OA45 OA120 OA120 OA60 EOM55 OA60 OA120 OA120 OA120 OA60 OA60 OA60 OA60 OA60 OA90 OA120 OA60 OA90 OA60 OA60 OA90 OA90 OA60 OA90 EOM55 OA60 OA60 OA90 OA60 OA120 OA120 OA60 OA30 OA30 OA30 OA30 OA45 OA30 OA30	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	1,469,264 1,103,506 10,528,447 176,694 556,578 181,972 10,296 (16,925,223) (5,535,436) (49,580) - 16,925,223 73,311 (219,938) (265,761) 43,942 5,535,436 5,126 213,553 (43,942) (32,515) (4,368) 219,938 32,515 (10,528,447) (1,103,506) 49,580 67,177 27,243 8,084 539,821 181,636 1,835,994 (1,469,264) (114,648) 121,676 249,315 (67,177) 18,934 (5,126) (73,311) (27,243) 26,748 230,044 12,899 19,118 28,982 270 2,393	6 5 46 1 2 1 - (64) (21) - - 91 - (2) (2) 2 94 - 4 (2) (1) - 81 12 (100) (99) 81 2 1 - 18 6 63 (61) (5) 17 34 (100) 9 (1) (21) (8) 7 60 3 5 8 - 1	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

～ 83 ～

Company Name	Related Party	Nature of Relationship	Transaction Detail	Transaction Detail	Transaction Detail	Transaction Detail	Transactions with Terms Different from Others	Transactions with Terms Different from Others	Notes/Accounts Receivable or (Payable)	Notes/Accounts Receivable or (Payable)
			Purchases/ (Sales)	Amount	% of Total Purchases/(Sales)	Payment Terms	Unit Price	Payment Terms	Ending Balance	% of Total Note/ Accounts Receivable or (Payable)	Note
BQE BQE BQE BQL BQL BQL BQP BQP BQP BQP BQP BQP BQP BQAT BQAU BQCA BQCH BQDE BQFR BQHK_HLD BQIB BQID BQIN BQIT BQJP BQKR BQME BQMX BQNL BQSE BQsha_EC2 BQUK MaxGen ZGC ESM GSC GSC BMB K2 K2SH DIC Data Image (Suzhou) Corporation DFI DFI DFI AMERICA, LLC. DFI Diamond Flower Information (NL) B.V. DFI DFI Co., Ltd. DFI AEWIN AEWIN AEWIN Beijing AEWIN Aewin Tech Inc. Alpha	BQNL BQCH BenQ BQMX MaxGen BenQ BQAU BQIN BQJP BQKR BQME BQID BenQ BQE BQP BQA BQE BQE BQE BenQ BQE BQP BQP BQE BQP BQP BQP BQL BQE BQE BQC_RO BQE BQL BQA GSC ESM BMB GSC K2SH K2 Data Image (Suzhou) Corporation DIC The Company DFI AMERICA, LLC. DFI Diamond Flower Information (NL) B.V. DFI DFI Co., Ltd. DFI AEWIN DFI AEWIN Beijing AEWIN Aewin Tech Inc. AEWIN Alpha USA	Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Parent/Subsidiary Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates	(Sales) (Sales) Purchases (Sales) (Sales) Purchases (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases (Sales) Purchases Purchases (Sales) (Sales) Purchases Processing cost Processing Revenue Purchases (Sales) Purchases (Sales) Purchases (Sales) Purchases (Sales) Purchases (Sales) Purchases (Sales) Purchases (Sales)	(711,331) (129,831) 3,283,470 (440,967) (152,880) 644,117 (198,197) (1,232,923) (1,642,032) (237,752) (1,132,160) (134,928) 5,862,392 685,928 198,197 600,765 129,831 904,208 491,267 120,875 222,704 134,928 1,232,923 172,134 1,642,032 237,752 1,132,160 440,967 711,331 231,445 191,538 775,795 152,880 609,322 (274,487) 274,487 138,127 (138,127) (324,204) 324,204 1,134,344 (1,134,344) 187,561 (614,226) 614,226 (496,642) 496,642 (324,308) 324,308 (320,249) 320,249 (286,858) 286,858 (187,442) 187,442 (7,460,063)	(16) (3) 82 (56) (19) 88 (3) (19) (25) (4) (17) (2) 100 100 81 100 100 96 99 86 99 100 69 93 100 100 95 92 100 100 99 100 83 100 (100) 57 29 (29) (30) 100 55 (29) 8 (15) 96 (12) 100 (8) 100 (8) 26 (21) 47 (14) 100 (41)	OA30 OA30 OA90 OA90 OA90 OA90 OA60 OA60 OA60 OA60 OA60 OA60 OA60 OA45 OA60 OA60 OA30 OA30 OA30 OA60 OA30 OA60 OA60 OA30 OA60 OA60 OA60 OA90 OA30 OA30 OA60 OA30 OA90 OA60 OA60 OA60 OA60 OA60 OA90 OA90 Depends on its working capital status Depends on its working capital status 60~90 Days 60~90 Days 60~90 Days 60~90 Days 60~90 Days 60~90 Days 60~90 Days EOM90 EOM90 150 Days After Shipment 150 Days After Shipment 120 Days After Shipment 120 Days After Shipment 90 Days	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	54,804 6,463 (539,821) 95,605 472,987 (181,636) 18,981 815,589 354,882 116,732 198,840 50,267 (1,835,994) (28,982) (18,981) (121,676) (6,463) (26,748) (230,044) (8,084) (2,393) (50,267) (815,589) (12,899) (354,882) (116,732) (198,840) (95,605) (54,804) (270) (18,934) (19,118) (472,987) (249,315) 45,989 (45,989) (22,144) 22,144 40,175 (40,175) (294,000) 294,000 (10,296) - (24,883) 16,905 (16,905) 6,736 (6,736) 33,315 (33,315) 275,316 (275,316) 92,440 (92,440) 1,373,313	14 2 (91) 16 81 (92) 1 41 18 6 10 3 (100) (100) (92) (99) (61) (100) (98) (84) (83) (99) (100) - (96) (100) (90) (89) (98) (24) (100) (94) (95) (99) 100 (67) (32) 32 24 (100) (76) 54 (3) - (100) 4 (100) 2 (88) 8 (12) 61 (47) 21 (100) 36	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

～ 84 ～

Company Name	Related Party	Nature of Relationship	Transaction Detail	Transaction Detail	Transaction Detail	Transaction Detail	Transactions with Terms Different from Others	Transactions with Terms Different from Others	Notes/Accounts Receivable or (Payable)	Notes/Accounts Receivable or (Payable)
			Purchases/ (Sales)	Amount	% of Total Purchases/(Sales)	Payment Terms	Unit Price	Payment Terms	Ending Balance	% of Total Note/ Accounts Receivable or (Payable)	Note
Alpha Alpha Alpha CSF Alpha HK Alpha HK D-Link Asia Hitron Hitron HVN Alpha USA D-Link Asia Alpha CSF Mirac Alpha VN Alpha CSF Alpha DGF HUS HBV Hitron BMC BMC BMC BMC BMC BMC BMC BMC BMM SMS BMS Simula Simula Technology (ShenZhen) Co., Ltd. Action Star Technology Co., Ltd. The Company PTT PTT PTT PTE PTU PTUK MTG Ginnet	D-Link Asia Alpha CSF Mirac Alpha VN Alpha CSF Alpha DGF HUS HBV Hitron Alpha Alpha Alpha Alpha CSF Alpha HK Alpha HK D-Link Asia Hitron Hitron HVN AU AUOSZ AUOXM BMM VVM SMS BMS Visco Vision BMC BMC BMC Simula Technology (ShenZhen) Co., Ltd. Simula The Company Action Star Technology Co., Ltd. PTE PTU PTUK PTT PTT PTT Ginnet MTG	Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates The entity who has significant influence over the Group The entity who has significant influence over the Group The entity who has significant influence over the Group Affiliates Associate Affiliates Affiliates Associate Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates	Purchases Purchases (Sales) (Sales) (Sales) Purchases (Sales) (Sales) (Sales) Purchases (Sales) (Sales) Purchases Purchases Purchases (Sales) Purchases Purchases Purchases (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) Purchases Purchases Purchases Purchases (Sales) Purchases (Sales) (Sales) Purchases (Sales) (Sales) (Sales) Purchases Purchases Purchases (Sales) Purchases	892,562 8,042,314 (310,788) (1,487,305) (6,191,412) 892,562 (4,134,320) (355,687) (6,243,767) 7,460,063 (892,562) (8,042,314) 310,788 1,487,305 6,191,412 (892,562) 4,134,320 355,687 6,243,767 (3,387,870) (925,859) (801,710) (437,210) (164,588) (267,973) 964,131 386,076 437,210 267,973 (964,131) 415,453 (415,453) (110,477) 110,477 (226,964) (314,171) (143,624) 226,964 314,171 143,624 (111,424) 111,424	6 58 (3) (17) (72) 68 (67) (6) (99) 100 (68) (89) 90 100 70 (100) 97 100 89 (24) (7) (6) (3) (1) (2) 9 4 65 100 (94) 87 (74) (9) 1 (21) (29) (13) 34 95 83 (1) 13	90 Days 90 Days 90 Days 90 Days 90 Days 90 Days 90 Days 90 Days 60 Days 90 Days 90 Days 90 Days 90 Days 90 Days 90 Days 90 Days 90 Days 90 Days 60 Days OA90 OA90 OA90 OA180 OA90 OA180 OA180 OA60 OA180 OA180 OA180 EOM60 EOM60 EOM60 EOM60 OA90 OA90 OA90 OA90 OA90 OA90 EOM60 EOM60	- - - - - - - - - - - - - - - - - - - (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 4) (Note 4) - - (Note 3) (Note 3) (Note 3) (Note 3) (Note 3) (Note 3) - -	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	- (640,969) 36,611 916,049 709,582 - 1,518,943 69,433 1,701,574 (1,373,313) - 640,969 (36,611) (916,049) (709,582) - (1,518,943) (69,433) (1,701,574) 770,725 69,998 51,067 235,738 29,811 51,015 (509,510) (54,473) (235,738) (51,015) 509,510 (34,327) 34,327 16,348 (16,348) 131,366 86,070 86,283 (131,366) (86,070) (86,283) 17,394 (17,394)	- (28) 3 49 38 - 74 3 100 (100) - 83 (100) (100) (62) - (100) (100) (86) 27 2 2 8 1 2 (16) (2) (93) (84) 98 (54) 59 8 - 28 19 19 (61) (100) (94) 1 (19)	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

(Note 1)The selling prices of BMC to related parties are not comparable to the sales prices for third-party customers as the specifications of products were different. For the other transaction, there were no significant differences between the sales for related parties and those for third-party customers. (Note 2)The purchase prices to related parties are not comparable to the purchase prices for third-party vendors as the specifications of products were different, and it is conducted under the agreed purchase price and conditions.

(Note 3)The selling prices of PTT to related parties are not comparable to the sales prices for third-party customers as the specifications of products were different. For the other transaction, there were no significant differences between the sales for related parties and those for third-party customers. (Note 4)Simula seldom purchases the same products from other vendors. Therefore, the purchase prices are not reasonably comparable.

～ 85 ～

QISDA CORPORATION

Receivables from related parties which exceed NT$100 million or 20% of the paid-in capital December 31, 2023

(Amounts in thousands of New Taiwan dollars, unless specified otherwise)

Table 7

Table 7
Company Name	Related Party	Nature of Relationship	Ending Balance	Turnover Rate	Overdue		Amount Received in Subsequent Period	Allowance for Bad Debts
					Amount	Action Taken
The Company The Company The Company The Company The Company The Company QCSZ QCOS QCOS QCPS QCES BenQ BenQ BenQ BenQ BQA BQA BQE BQL BQP BQP BQP BQP PTT Data Image (Suzhou) Corporation AEWIN ACE Alpha Alpha Alpha D-Link Asia Alpha CSF Alpha HK Alpha HK Hitron HVN	BenQ QJTO QALA AU AUOSZ AUOKS The Company The Company AUOXM QCSZ The Company BQE BQL BQP QCSZ BQCA ZGC BQFR MaxGen BQIN BQJP BQME BQKR PTE DIC Aewin Beijing Tianjin Ace Pillar Co., Ltd. Alpha USA Alpha HK Hitron Alpha Alpha Alpha CSF Alpha VN HUS Hitron	Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary The entity who has significant influence over the Group The entity who has significant influence over the Group The entity who has significant influence over the Group Parent/Subsidiary Parent/Subsidiary The entity who has significant influence over the Group Affiliates Parent/Subsidiary Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates	1,469,264 1,103,506 10,528,447 176,694 556,578 181,972 16,925,223 5,535,436 213,553 219,938 1,973,219 539,821 181,636 1,835,994 163,457 121,676 249,315 230,044 472,987 815,589 354,882 198,840 116,732 131,366 294,000 275,316 151,774 1,373,313 175,006 302,103 400,269 640,969 709,582 916,049 1,518,943 1,701,574	3.90 2.61 1.96 7.89 2.71 2.13 3.37 2.52 3.50 7.72 (Note 1) 4.17 2.40 3.46 (Note 1) 4.18 4.42 2.26 0.30 1.62 5.28 4.37 3.39 1.57 4.17 0.72 (Note 1) 7.37 (Note 1) (Note 3) 2.34 11.94 6.69 2.98 2.17 2.73	65,629 211,981 4,518,522 - - - 4,371,978 3,036,786 - - 782,533 62 20,462 773,560 - 74,326 52,122 - - 527,182 147,043 - 35,794 64,648 - 101,493 - - - - - - 31,482 55,926 - -	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	700,911 256,472 3,446,134 162,488 151,328 52,301 6,818,130 1,032,170 - - 1,101,835 221,644 109,725 524,229 97,593 74,486 52,953 - - 71,317 269,242 53,123 56,567 26,185 168,960 34,164 - 540,208 - - - 358,256 286,941 120,917 536,841 10,274	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

～ 86 ～

Company Name	Related Party	Nature of Relationship	Ending Balance	Turnover Rate	Overdue	Overdue	Amount Received in Subsequent Period	Allowance for Bad Debts
					Amount	Action Taken
BMC BMC BMS	AU BMM BMC	The entity who has significant influence over the Group Affiliates Affiliates	770,725 235,738 509,510	3.81 (Note 2) 3.01 (Note 2) 1.55(Note 2)	- - 20,059	- - -	- - 50,342	- - -

(Note 1)The sales from repurchasing after processing have been eliminated; therefore, calculation of turnover rate is not applicable. (Note 2)The calculation of turnover rate includes the account receivable sold to financial institutions.

～ 87 ～

QISDA CORPORATION

Information of Investees (Excluding Information on investments in Mainland China)

For the year ended December 31, 2023

(Amounts in thousands of New Taiwan dollars / shares, unless specified otherwise)

Table 8

Table 8
Investor	Investee	Location	Main Businesses and Products	Original investment Amount		Balances as of December 31, 2023			Net Income (Loss) of the Investee	Investment Income (Loss)	Note
				December 31, 2023	December 31, 2022	Shares	Percentage of Ownership	Carrying Value
The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company BMC BMC BMC BMC	DFN BMC BenQ QALA QJTO QLPG QLLB APV Darly BBHC PTT BDT QTOS Q.S.Control Corp. DFI Alpha K2 DIC EASCHK MTG Topview QVH Simula GSC TCI Gene Rapidtek Norbel H2 Energy Co., Ltd. BMLB SGM Visco Vision Inc. Cenefom Corporation	Taiwan Taiwan Taiwan USA Japan Malaysia Malaysia Taiwan Malaysia Cayman Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Hong Kong Taiwan Taiwan Vietnam Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Malaysia Taiwan Taiwan Taiwan	Manufacture and sale of computer peripherals, power devices, green energy products and passive components R&D, manufacture and sale of optoelectronics film Sales of brand-name electronic products Sales of electronic products Sales and maintenance of electronic products in Japanese market Leasing and management services Investment and holding activity Investment and holding activity Investment and holding activity Investment and holding activity Manufacture, sales, and import and export of POS terminals and peripheral Manufacture and sale of medical consumable and equipment Sales of electronic products R&D, manufacture and sales of medical consumables and equipments Manufacture and sales of industrial motherboards and components R & D, manufacture and sale of LAN/MAN, wireless, mobile & broadband, and digital multimedia products Sale of medical consumable and equipment Manufacture and sales of marine display modules Sales of electronic products Distributing and reselling software and hardware equipment of ICT infrastructures, computing & data utilization, and digitalization. Manufacture and sales of video surveillance cameras Manufacture of monitors Manufacture and sales of electronic material Sale of alcohol and medical disinfectant Genetic testing and wholesale of nutritional supplement Antenna design and production and sales of RF testing products Retail and wholesale of maternity and infant products, medical care products, dietary supplement, and cosmetics Energy service Investment and holding activity Sales of medical consumables and equipment Manufacture and sale of contact lenses R&D, manufacture and sale of medical consumable and equipment	662,195 507,883 4,963,435 32,800 2,701 578,128 3,687,539 570,016 165,000 7,789,187 1,475,978 280,000 1,000 63,000 3,154,750 8,135,810 - 260,000 78,338 3,202,856 172,500 1,212,849 600,000 254,000 545,160 163,850 1,800,000 1,500 499,790 231,727 168,771 272,968	662,195 507,883 4,963,435 32,800 2,701 578,128 3,687,539 570,016 165,000 1,503,504 1,475,978 280,000 1,000 63,000 3,154,750 8,135,810 217,763 260,000 78,338 3,202,856 172,500 1,212,849 600,000 254,000 545,160 163,850 - - 1,141,340 231,727 168,771 272,968	58,005 43,659 320,000 1,000 - 50,000 114,250 201,181 6,000 108,555 43,577 28,000 100 6,000 51,610 295,797 - 20,000 1 96,841 5,750 - 30,000 17,500 4,720 2,638 10,000 150 14,082 2,000 9,334 11,646	20.87% 13.61% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 44.32% 58.04% 100.00% 100.00% 20.00% 45.08% 54.60% - 28.82% 54.00% 51.41% 20.00% 100.00% 37.51% 50.00% 17.84% 8.79% 28.54% 30.00% 100.00% 100.00% 14.82% 50.98%	2,546,239 715,694 9,074,526 70,580 40,250 366,535 16,325,539 3,804,909 275,239 2,816,442 1,335,090 36,561 1,017 69,424 2,718,415 7,725,175 - 410,107 91,688 2,737,028 530,708 304,885 565,240 322,588 514,309 137,042 1,710,470 1,331 1,683,095 38,526 384,314 213,973	1,650,873 414,352 1,451,193 7,800 (2,839) (11,938) 752,768 315,069 44,410 759,612 108,513 (9,122) 14 30,578 361,685 547,920 90,251 278,863 12,016 592,342 183,134 (188,191) (83,450) 21,152 10,107 12,223 208,037 (564) (8,791) 21,965 301,613 (17,770)	334,479 59,168 1,446,624 7,800 (2,839) (11,938) 534,692 315,069 44,410 203,563 38,365 (5,675) 14 6,011 82,616 205,082 18,105 80,620 955 302,128 32,861 (188,191) (47,006) 4,687 (11,890) (9,511) 10,786 (169) - - - -	Associate Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Associate Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Associate Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Associate Associate Associate Associate Affiliates Affiliates Associate Affiliates

～ 88 ～

Investor	Investee	Location	Main Businesses and Products	Original investment Amount	Original investment Amount	Balances as of December 31, 2023	Balances as of December 31, 2023	Balances as of December 31, 2023	Net Income (Loss) of the Investee	Investment Income (Loss)	Note
				December 31, 2023	December 31, 2022	Shares	Percentage of Ownership	Carrying Value
BMC BMC BMC BMC WPC WPSG APV APV APV APV APV APV APV APV APV APV APV APV APV Darly C Darly Darly BenQ BenQ BenQ BenQ BenQ BenQ BenQ BenQ BenQ BenQ BenQ BenQ BenQ BenQ BenQ	Genejet Biotech Co., Ltd. WEB-PRO Corporation MLK Bioscience Co., Ltd. Kangde Corp. WPSG WPVN Darly C BMC BMTC BBHC PTT DFI Alpha Topview DIC Simula GSC TCI Gene Rapidtek Alpha BenQ Guru Holding Ltd. (GSH) BBHC BQA BQL BQE BenQ Mexico S. de R.L. de C.V. BQP Darly 2 BenQ Guru Holding Ltd. (GSH) DFN BMC BBHC BMTC MQE INF BQHK_HLD PT BenQTeknologi Indonesia	Taiwan Taiwan Taiwan Taiwan Singapore Vietnam Taiwan Taiwan Taiwan Cayman Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Hong Kong Cayman USA USA The Netherlands Mexico Taiwan Taiwan Hong Kong Taiwan Taiwan Cayman Taiwan The Netherlands Taiwan Hong Kong Indonesia	R&D, manufacture and sale of medical consumable and equipment R&D, manufacture and sale of medical supplies R&D, manufacture and sale of medical consumable and equipment Sale of medical consumable and equipment Investment and holding activity Manufacture and sale of medical supplies Investment management consulting R&D, manufacture and sale of optoelectronics film R&D, manufacture and sales of medical consumables and equipments Investment and holding activity Manufacture, sales, and import and export of POS terminals and peripherals Manufacture and sales of industrial motherboards and components R & D, manufacture and sale of LAN/MAN, wireless, mobile & broadband, and digital multimedia products Manufacture and sales of video surveillance cameras Manufacture and sales of marine display modules Manufacture and sales of electronic material Sale of alcohol and medical disinfectant Genetic testing and wholesale of nutritional supplement Antenna design and production and sales of RF testing products R & D, manufacture and sale of LAN/MAN, wireless, mobile & broadband, and digital multimedia products Investment and holding activity Investment and holding activity Sales of brand-name electronic products in North America markets Sales of brand-name electronic products in Latin America markets Sales of electronic products in European markets Sales of brand-name electronic products in Latin America markets Sales of brand-name electronic products in Asia markets Investment and holding activity Investment and holding activity Manufacture and sale of computer peripherals, power devices, green energy products and passive components R&D, manufacture and sale of optoelectronics film Investment and holding activity Manufacture and sales of medical consumables and equipments Maintenance of brand-name electronic monitors and projectors in European markets Assembly and sales of gaming electronic products Sales of brand-name electronic products in HK markets Sales of electronicproducts	47,860 3,161,999 6,000 5,980 895,139 926,053 77,933 221,786 42,584 904,102 112,080 149,096 284,143 11,806 88,222 201,673 150,000 189,516 42,050 273,445 30,456 471,516 114,553 342,589 960,568 - 950,000 2,361,132 74,021 233,491 946,731 719,088 235,069 90,912 117,987 118,282 21	43,316 - 6,000 5,980 - - 77,933 221,786 42,584 904,102 112,080 149,096 284,143 63,525 88,222 201,673 150,000 189,516 42,050 273,445 30,456 471,516 114,553 342,589 960,568 - 950,000 2,361,132 74,021 233,491 946,731 719,088 235,069 90,912 117,987 118,282 21	4,070 35,700 217 598 30,000 - 12,105 15,182 3,549 25,000 6,006 2,294 12,236 239 3,607 5,390 17,500 1,480 677 12,710 7,800 14,158 200 9,350 5,009 - 20,000 227,372 23,400 14,017 80,848 20,000 19,353 82 6,947 4,000 -	75.63% 51.00% 20.00% 9.98% 100.00% 100.00% 45.11% 4.73% 7.96% 10.21% 8.00% 2.00% 2.26% 0.83% 5.20% 6.74% 50.00% 5.59% 2.26% 2.35% 12.50% 5.78% 100.00% 100.00% 100.00% 0.03% 100.00% 100.00% 37.50% 5.04% 25.21% 8.17% 43.43% 100.00% 100.00% 100.00% 0.31%	44,902 2,908,093 4,086 4,257 765,713 758,203 186,724 274,420 88,115 648,478 173,007 151,468 258,566 28,683 91,182 205,769 239,569 186,042 41,335 247,390 15,862 367,027 1,148,329 92,586 1,055,400 - 647,208 4,387,170 48,980 615,250 1,461,333 518,479 469,238 81,656 93,266 2,283,612 59	390 234,992 (1,306) (6,912) (67,969) (69,034) 14,392 414,352 114,581 759,612 108,513 361,685 547,920 183,134 278,863 (83,450) 21,152 10,107 12,223 547,920 5,728 759,612 100,379 52,822 112,835 42,352 452,786 485,885 5,728 1,650,873 414,352 759,612 114,581 1,671 6,732 403,804 (10,443)	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	Affiliates Affiliates Associate Associate Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Associate Affiliates Affiliates Affiliates Associate Associate Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Associate Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates

～ 89 ～

Investor	Investee	Location	Main Businesses and Products	Original investment Amount	Original investment Amount	Balances as of December 31, 2023	Balances as of December 31, 2023	Balances as of December 31, 2023	Net Income (Loss) of the Investee	Investment Income (Loss)	Note
				December 31, 2023	December 31, 2022	Shares	Percentage of Ownership	Carrying Value
BenQ BQP BQP BQP BQP BQP BQP BQP BQP BQP BQP BQA BQL BQL BQL BQL Joytech LLC Vividtech LLC BQmx Darly 2 Darly 2 Darly 2 Darly 2 Darly 2 Darly 2 Darly 2 Darly 2 Darly 2 Darly 2 Darly 2 BQE BQE BQE BQE BQE BQE BQE BQE BQE	Alpha BenQ India Private Ltd. BenQ (M.E.) FZE BenQ Japan Co., Ltd. BenQ Singapore Pte Ltd. BenQ Australia Pte Ltd. BenQ Service & Marketing (M) Sdn Bhd BenQ (Thailand) Co., Ltd. BenQ Korea Co., Ltd. PT BenQ Teknologi Indonesia BenQ Vietnam Co., Ltd. BenQ Canada Corp. BenQ Mexico S. de R.L. de C.V. Joytech LLC Vividtech LLC BenQ Service de Mexico S.de R.L. de C.V. Maxgen Comércio Industrial imp E Exp Ltda. Maxgen Comércio Industrial imp E Exp Ltda. BenQ Service de Mexico S. de R.L. de C.V. Darly C BBHC BenQ Guru Holding Ltd. (GSH) BMTC PTT DFI Alpha K2 DIC Topview Simula BenQ UK Limited BenQ Deutschland GmbH BenQ Benelux B.V. BenQ Austria GmbH BenQ Iberica S.L. Unipersonal BenQ Italy S.R.L BenQ France SAS BenQ Nordic A.B. BenQ LLC.	Taiwan India United Arab Emirates Japan Singapore Australia Malaysia Thailand Korea Indonesia Vietnam Canada Mexico USA USA Mexico Brazil Brazil Mexico Taiwan Cayman Hong Kong Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan UK Germany The Netherlands Austria Spain Italy France Sweden Russia	R & D, manufacture and sale of LAN/MAN, wireless, mobile & broadband, and digital multimedia products Sales of electronic products Sales of electronic products Sales of electronic products Sales of electronic products Sales of electronic products Sales of electronic products Sales of electronic products Sales of electronic products Sales of electronic products Sales of electronic products Sales of electronic products Sales of electronic products Investment and holding activity Investment and holding activity Providing administration and management services to affiliates Sales of electronic products Sales of electronic products Providing administration and management services to affiliates Investment management consulting Investment and holding activity Investment and holding activity Manufacture and sales of medical consumables and equipment Manufacture, sales, and import and export of POS terminals and peripherals Manufacture and sales of industrial motherboards and components R & D, manufacture and sale of LAN/MAN, wireless, mobile & broadband, and digital multimedia products Sale of medical consumable and equipment Manufacture and sales of marine display modules Manufacture and sales of video surveillance cameras Manufacture and sales of electronic material Sales of electronic products Sales of electronic products Sales of electronic products Sales of electronic products Sales of electronic products Sales of electronic products Sales of electronic products Sales of electronic products Providing administration and management services to affiliates	342 224,405 8,891 4,518 1,837 132,590 119,488 120,116 1,713 6,901 5,576 26 77,591 74,046 74,046 - 74,046 74,046 87 89,179 2,122,721 121,860 27,337 49,426 596,382 79,990 - 48,093 123,252 205,920 14,800 25,587 567 1,091 4,677 92,654 2,045 445 52	342 224,405 8,891 4,518 1,837 132,590 119,488 120,116 1,713 6,901 5,576 26 77,591 74,046 74,046 - 74,046 74,046 87 89,179 2,122,721 121,860 27,337 49,426 596,382 79,990 44,997 48,093 123,252 205,920 14,800 25,587 567 1,091 4,677 92,654 2,045 445 52	18 440,296 - - 500 2,191 100 12,000 10 6 1 1 3 1 1 - 1 1 3 14,728 65,024 31,200 1,590 1,648 9,175 4,185 - 3,005 2,615 5,500 - - - - - 50 - - -	0.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 99.69% 100.00% 100.00% 99.97% 100.00% 100.00% 0.03% 50.00% 50.00% 99.97% 54.89% 26.55% 50.00% 3.57% 2.19% 8.01% 0.77% - 4.33% 9.10% 6.88% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%	354 133,196 141,081 206,858 5,604 98,039 7,750 (90,011) (2,235) 20,751 4,418 70,897 118,201 (14,004) (14,004) - (14,004) (14,004) 4,533 227,195 1,686,800 65,307 39,478 47,472 606,190 76,914 - 72,717 315,985 209,945 82,685 185,453 (22,186) 41,182 97,752 85,506 (103,034) 42,111 16,423	547,920 83,588 42,597 31,868 3,377 5,781 (695) (16,958) (4,293) (10,443) (138) 2,638 42,352 32,321 32,321 (5) 64,642 64,642 (5) 14,392 759,612 5,728 114,581 108,513 361,685 547,920 90,251 278,863 183,134 (83,450) 7,844 3,296 5,743 3,290 6,816 40,606 5,336 3,656 51	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Associate Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates

～ 90 ～

Investor	Investee	Location	Main Businesses and Products	Original investment Amount	Original investment Amount	Balances as of December 31, 2023	Balances as of December 31, 2023	Balances as of December 31, 2023	Net Income (Loss) of the Investee	Investment Income (Loss)	Note
				December 31, 2023	December 31, 2022	Shares	Percentage of Ownership	Carrying Value
BMTC BMTC BMTC BMTC BMTC BMTC BMTC BMTC BMTC Concord BHS BHS K2 K2 Asiaconnect PTT PTT PTT PTT PTT PTT PTT PTT PTT PTT PTTN PTTN PTE PTE PTE PTE PTME WEBEST WEBEST WEBEST P&S PTAP DFI DFI DFI DFI DFI DFI	Asiaconnect Highview LILY BABD BHS EASTECH Concord CCHC K2 CCHC NBHIT CKCARE K2 Medical (Thailand) Co., LTD PT Frismed Hoslab Indonesia K2 WEBEST PTUK PTAP PTE PTME PTSE PTTN P&S PTMG PTNA WEBEST PTTN PTUK Sloga RSS PTF E-POS PTTN PTNA PTME PTU PTME DFI AMERICA, LLC. Yan Tong Technology Ltd. DFI Co., Ltd. Diamond Flower Information (NL) B.V. AEWIN ACE	Taiwan Samoa Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Thailand Indonesia Taiwan Taiwan UK Taiwan Germany United Arab Emirates Singapore Taiwan British Virgin Islands Taiwan Morocco Taiwan Taiwan UK Slovenia Spain France United Arab Emirates Taiwan Morocco United Arab Emirates USA United Arab Emirates USA Mauritius Japan The Netherlands Taiwan Taiwan	Sales of medical consumables and equipment and software Investment and holding activity Sales of medical consumables and equipment Sales of medical consumables and equipment Sales of medical consumables and equipment Sales of medical consumables and equipment Sales and purchase of medical products, medical equipment leasing and management consulting Sales of medical consumables and equipment, and management consulting Sales of medical consumables Sales of medical consumables and equipment, and management consulting Sales of medical consumables and equipment Sales of medical consumables and equipment Sales of medical consumables Sales of medical consumables Sales of medical consumables Sales, import and export of electronic products Sales, import and export of electronic products Sales, import and export of electronic products Sales, import and export of electronic products Sales, import and export of electronic products Software development and sales of product Software development and sales of product Sales, import and export of electronic products Software development and sales of product Sales, import and export of electronic products Sales, import and export of electronic products Software development and sales of product Sales, import and export of electronic products Sales, import and export of electronic products Sales, import and export of electronic products Sales, import and export of electronic products Sales, import and export of electronic products Software development and sales of product Sales, import and export of electronic products Sales, import and export of electronic products Sales, import and export of electronic products Sales, import and export of electronic products Sales of industrial motherboards Investment and holding activity Sales of industrial motherboards Sales of industrial motherboards Manufacture and sale of industrial motherboards and component Sales of automation mechanical transmission system and component	21,984 36,211 185,000 88,000 100,000 20,300 190,000 - 390,000 119,984 59,280 105,300 15,919 257,728 10,000 - 43,834 80,000 51,451 137,387 57,449 25,779 134,973 - - 29,254 29,417 5,640 980 - 1,641 2,485 - - - 31,593 309 254,683 107,198 104,489 35,219 564,191 1,301,359	21,984 36,211 185,000 88,000 100,000 20,300 190,000 40,000 - 80,000 59,280 105,300 15,919 257,728 - 21,843 43,834 - 51,451 137,387 57,449 25,769 134,973 11,000 4,075 - - 5,640 980 - 1,641 2,485 10 1 1,560 31,593 - 254,683 107,198 104,489 35,219 564,191 1,301,359	1,995 1,062 10,000 8,800 10,000 700 133,333 - 7,800 12,000 1,092 4,362 - 12 200 - 886 8,000 (Note1) 0.099 222 5,739 4,560 - - 2,500 2,100 114 (Note1) (Note1) (Note1) 0.3 - - - 1,091 0.001 1,209 3,500 6 12 30,376 53,958	99.75% 100.00% 100.00% 88.00% 100.00% 70.00% 40.00% - 39.00% 100.00% 52.00% 60.00% 49.00% 67.00% 1.00% - 88.60% 100.00% 50.02% 99.00% 69.88% 60.23% 100.00% - - 100.00% 100.00% 11.40% 90.00% 68.00% 70.00% 100.00% - - - 100.00% 1.00% 100.00% 100.00% 100.00% 100.00% 51.38% 48.07%	22,560 19,710 260,895 58,786 191,113 35,644 286,920 - 284,704 120,758 84,905 107,662 36,230 311,015 7,300 - 42,733 69,843 142,505 29,645 62,989 83,725 161,888 - - 33,946 34,593 6,416 (15,500) 12,603 1,191 4,256 - - - 134,053 232 410,339 90,358 146,913 147,819 642,461 1,040,700	450 3,875 31,244 (1,374) 64,604 16,655 42,744 - 90,251 805 51,378 11,270 14,983 38,278 90,251 7,103 11,280 (4,467) 8,218 (4,386) 2,696 11,107 18,542 8,070 - 7,103 8,070 11,280 (87) 6,755 - (1,776) - - - 31,391 (4,386) 22,661 (30,147) 36,325 38,956 26,616 (20,946)	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates

～ 91 ～

Investor	Investee	Location	Main Businesses and Products	Original investment Amount	Original investment Amount	Balances as of December 31, 2023	Balances as of December 31, 2023	Balances as of December 31, 2023	Net Income (Loss) of the Investee	Investment Income (Loss)	Note
				December 31, 2023	December 31, 2022	Shares	Percentage of Ownership	Carrying Value
DFI AEWIN AEWIN Wise Way ACE ACE Cyber South Cyber South ACE STC ACE AEG DIC DIC DIC DIVA DIVA DIVA DIVA DIVA DIVA Diva Capital lnc. QUBYX Limited QUBYX Limited EASCHK MTG MTG MTG MTG MTG MTG MTG MTG MTG Epic Cloud Epic Cloud AdvancedTEK Statnic Simula Simula	Brainstorm Wise Way Aewin Tech Inc. Bright Profit Cyber South Hong Kong Ace Pillar Enterprise Company Limited Proton Inc. Ace Tek (HK) Holding Co., Ltd. STC Standard Technology Corp. AEG Blue Walker GmbH Data Image (Mauritius) Corporation DIVA DMC Components International, LLC DIVA Laboratories GmbH DIVA Laboratories U.S., LLC Panoramic Imaging Solutions Inc. Diva Capital lnc. QUBYX Limited The Linden Group Corp. Diva Holding lnc. QUBYX LTD QUBYX Software Technologies Inc Expert Alliance Smart Technology Co., Ltd. Ginnet Epic Cloud Corex Statinc Grandsys Inc. AdvancedTEK Everlasting Digital ESG Co., Ltd. MRU Brainstorm Ginnet Statinc APEO Human Capital Services Corp. Datta Aspire Asia Inc. Simula TechnologyCorp.	USA Anguilla USA Hong Kong Samoa Hong Kong Samoa Hong Kong Taiwan British Virgin Islands Taiwan Germany Mauritius Taiwan Orlando, USA Germany USA Taiwan Samoa UK USA Samoa France USA Macao Taiwan Taiwan South Africa Taiwan Taiwan Taiwan Taiwan Taiwan USA Taiwan Taiwan Taiwan Taiwan British Virgin Islands USA	Wholesale and retail of computer and peripheral products software Investment and holding activity Wholesale of computer peripheral products and software Investment and holding activity Investment and holding activity Sales of automation mechanical transmission system and component Investment and holding activity Investment and holding activity Sales of semiconductor optoelectronic equipment and consumables, and equipment maintenance services Investment and holding activity Energy service Sales and service of energy management product Investment and holding activity Manufacture and sales of medical consumables and equipment Agency sales Sales of monitor Sales of monitor Sales of monitor Investments in Mainland China Sales and software development Sales of monitor Investments in Mainland China Sales and software development Sales and software development Sales of electronic products and smart services Sales of network and information and communication hardware and software Software and data processing services Sales, purchase, import and export of electronic products Market research, marketing consultant and data processing service Data software and data processing service Applications implement services Sales and software development R&D and sales of computer information system Wholesale and retail of computers and peripherals product Sales of network and information and communication hardware and software Market research, marketing consultant and data processing service Implementaion of application software services Market research, marketing consultant and data processing service Investment and holding activity Sales in North America	501,582 46,129 77,791 46,129 107,041 5,120 527,665 4,938 187,000 21,727 166,760 138,804 518,381 625,680 24,304 25,092 35,858 24,600 52,908 - 30,015 52,598 - - 381 120,001 55,000 251,872 69,983 94,547 30,091 5,000 31,000 530,075 172 40 2,060 20,000 286,764 15,699	501,582 46,129 77,791 46,129 107,041 5,120 527,665 4,938 187,000 21,727 166,760 138,804 518,381 625,680 24,304 25,092 35,858 24,600 52,908 17,815 30,015 52,598 38 - 381 119,142 27,500 251,872 69,983 94,547 30,091 5,000 31,000 - 172 40 2,060 20,000 286,764 15,699	- 1,500 2,560 1,500 4,669 1,200 17,744 150 6,084 600 4,993 (Note1) 20,215 20,856 300 - - 2,500 - - - - - - 100 10,525 5,500 1 1,754 5,643 1,153 500 2,000 233 10 1 200 2,000 9,403 500	- 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 60.00% 100.00% 99.86% 100.00% 100.00% 35.55% 30.00% 100.00% 100.00% 100.00% 100.00% - 19.00% 100.00% - - 100.00% 79.73% 100.00% 100.00% 34.99% 20.96% 34.09% 29.41% 100.00% 35.09% 0.08% 0.02% 100.00% 100.00% 100.00% 100.00%	- 99,601 14,992 146,275 537,147 4,714 417,001 2,595 218,794 111,374 204,487 170,924 472,173 622,870 8,874 1,179 14,498 24,156 9,635 - (1,590) 9,630 - - 6,636 180,736 61,848 181,325 81,103 114,326 38,499 2,307 28,023 523,206 172 40 2,692 6,962 116,274 44,911	- (39,600) (3,070) (39,601) (36,131) (1,320) (36,653) 457 15,044 14,578 25,114 24,094 62,916 73,617 3,163 (220) 2,709 (1,510) 1,253 - (37,661) 1,253 - - (4,214) 9,677 7,346 (65,054) (1,227) 42,837 13,508 (3,459) 2,442 16,230 9,677 (1,227) 169 (5,488) (30,688) 2,739	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Associate Affiliates Affiliates Affiliates Affiliates Associate Associate Affiliates Associate Associate Affiliates Affiliates Affiliates Affiliates Affiliates Associate Affiliates Associate Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates

～ 92 ～

Investor	Investee	Location	Main Businesses and Products	Original investment Amount	Original investment Amount	Balances as of December 31, 2023	Balances as of December 31, 2023	Balances as of December 31, 2023	Net Income (Loss) of the Investee	Investment Income (Loss)	Note
				December 31, 2023	December 31, 2022	Shares	Percentage of Ownership	Carrying Value
Simula Simula Aspire Asia Inc. Aspire Asia Inc. GSC GSC Alpha Alpha Alpha Alpha Alpha Alpha Alpha Alpha Alpha Enrich Enrich Enrich Enrich Hitron Hitron Hitron Hitron Hitron Hitron	Simula Company Limited Action Star Technology Co.,Ltd. Aspire Electronics Corp. Simula Company Limited Bigmin Bio-Tech Company Ltd. E-Strong Medical Technology Co., Ltd. AH Alpha Solutions Alpha USA Alpha HK ATS Enrich Hitron D-Link Asia Alpha VN IDT Transnet APL Rapidtek HSM IDT HVN HUS HBV HTG	Hong Kong Taiwan Samoa Hong Kong Taiwan Taiwan Cayman Japan USA Hong Kong USA Taiwan Taiwan Singapore Vietnam Taiwan Taiwan Taiwan Taiwan Samoa Taiwan Vietnam USA The Netherlands Taiwan	Investment and holding activity Manufacture of computer and periherals products Investment and holding activity Investment and holding activity Sale of alcohol and medical disinfectant Manufacture of alcohol and dialysate Investment and holding activity Sale of network equipment, components and technical services Sale, marketing and procurement service in USA Investment and holding activity Post-sale service Investment and holding activity Marketing on system integration of communication production and telecommunication products Investment in manufacturing business Manufacture and sales of network products Telecommunication and broadband network system services Operating in network communication products, provide system support services, integrated supply and import and export of network equipment Sale of network equipment, components and technical services Antenna design and production and sales of RF testing products International trade Telecommunication and broadband network system services Production and sale of broadband telecommunications products International trade International trade Investment	187,625 983,858 95,099 181,726 20,250 310,112 - 5,543 51,092 3,143,628 260,497 400,000 4,811,000 - 1,195,424 189,523 50,000 80,000 108,750 172,179 126,091 1,511,735 90,082 59,604 20,000	187,625 983,858 95,099 181,726 20,250 310,112 208,500 5,543 51,092 3,143,628 260,497 400,000 4,811,000 1,692,805 703,056 189,523 50,000 80,000 108,750 642,697 126,091 1,511,735 90,082 59,604 20,000	50,500 32,001 2,188 46,033 1,500 23,687 - 1 1,500 780,911 8,100 40,000 200,000 - - 2,575 5,000 8,000 1,751 5,850 16,703 (Note1) 300 15 2,000	52.31% 59.35% 95.10% 47.69% 100.00% 71.03% - 100.00% 100.00% 100.00% 100.00% 100.00% 62.24% - 100.00% 5.61% 100.00% 98.92% 5.84% 100.00% 36.39% 100.00% 100.00% 100.00% 100.00%	116,676 961,481 10,079 106,357 31,343 308,976 - 17,676 172,138 2,256,923 191,730 312,957 3,928,462 (Note2) 929,750 119,772 16,739 49,980 107,298 187,851 638,399 2,798,108 294,821 66,652 3,440	(47,289) 9,370 (8,578) (47,289) 4,561 4,521 - 234 13,822 110,387 4,041 1,355 4,879 (20,782) (178,500) 261,763 44 (13,295) 12,223 49,396 261,763 381,925 (82,795) (35,857) (4)	- - - - - - - - - - - - - - - - - - - - - - - - -	Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Associate Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates

(Note1)There was no shares as the company is a limited liability company.

(Note2)On December 28, 2023, Alpha entered into a stock transfer agreement to dispose the entire ownership of D-link Asia and Alpha DGF, which were reclassified as non-current assets held for sale.

～ 93 ～

QISDA CORPORATION

Information on investments in Mainland China

For the year ended December 31, 2023

(Amounts in thousands of New Taiwan dollars and other currencies, unless specified otherwise)

Table 9

A. Qisda Corporation

1. Information on investments in Mainland China:

Investee Company Name	Main Businesses and Products	Total Amount of Paid-in Capital	Method of Investment	Accumulated Outflow of Investment from Taiwan as of January 1, 2023	Investment Flows	Investment Flows	Accumulated Outflow of Investment from Taiwan as of December 31, 2023	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss)	Carrying Value as of December 31, 2023	Accumulated Inward Remittance of Earnings as of December 31, 2023
					Outflow	Inflow
Guangxi Youshan Medical Technology Co., Ltd. (“Youshan”) BenQ Guru Software Co., Ltd. (“GSS”) BenQ Biotech (Shanghai) Co., Ltd. (“BBC”) Nanjing Silvertown Health & Development Co., Ltd. (“NSHD”) Suzhou BenQ Investment Co., Ltd. (“BIC”) Suzhou BenQ Hospital Co., Ltd. (“SMH”) BenQ Hospital Management Consulting (Nanjing) Co., Ltd.(“NMHC”) BenQ Intelligent Technology (Shanghai) Co., Ltd. (“BQC_RO”) BenQ Technology (Shanghai) Co., Ltd. (“BQls”) Nanjing BenQ Hospital Co., Ltd. (“NMH”) ShengCheng Trading (Shanghai) Co., Ltd. (“BQsha_EC2”) Qisda Optronics (Suzhou) Co., Ltd. (“QCOS”) Qisda Precision Industry (Suzhou) Co., Ltd. (“QCPS”) Qisda (Shanghai) Co., Ltd. (“QCSH”) BenQ Medical (Shanghai) Co., Ltd. (“BMSH”) Qisda (Suzhou) Co., Ltd. (“QCSZ”) Qisda Electronics (Suzhou) Co., Ltd. (“QCES”)	Sales of medical consumables and equipment R&D and sales of computer information systems Manufacture and sales of medical consumables and equipment Medical services Investment and holding activity Medical services Medical management consulting Sales of brand-name electronic products in China markets Sales of brand-name electronic products Medical services Sales of brand-name electronic products Manufacture of projectors Manufacture of plastic parts Manufacture of monitors Sale of medical consumable and equipment Manufacture of monitors and communication devices Manufacture of LCD module	2,275,500 (USD 74,000) 41,820 (USD 1,360) 362,850 (USD 11,800) 383,145 (USD 12,460) 2,044,875 (USD 66,500) 153,750 (USD 5,000) 92,250 (USD 3,000) 30,750 (USD 1,000) 3,075 (USD 100) 5,596,961 (USD 182,015) 2,610,404 (CNY 601,975) 30,750 (USD 1,000) 922,500 (USD 30,000) 433,640 (CNY 100,000) 405,900 (USD 13,200) 867,280 (CNY 200,000) 26,018 (CNY 6,000)	(Note 1) (Note 10) (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 11) (Note 1) (Note 1) (Note 1) (Note 9) (Note 12) (Note 1) (Note 2) (Note 14)	2,183,250 (USD 71,000) - 362,850 (USD 11,800) 383,145 (USD 12,460) 1,476,000 (USD 48,000) 146,063 (USD 4,750) 92,250 (USD 3,000) 6,150 (USD 200) - 4,249,896 (USD 138,208) 1,677,320 (USD 54,547) 30,320 (USD 986) 194,894 (USD 6,338) 87,238 (USD 2,837) 298,275 (USD 9,700) 888,962 (CNY 205,000) -	- - - - - - - - - 4,268,531 (USD 138,814) 1,737,867 (USD 56,516) 28,382 (USD 923) - 81,549 (USD 2,652) - 216,820 (CNY 50,000) -	- - - - - - - - - - - - - - - - -	2,183,250 (USD 71,000) - 362,850 (USD 11,800) 383,145 (USD 12,460) 1,476,000 (USD 48,000) (Note 8) 146,063 (USD 4,750) 92,250 (USD 3,000) 6,150 (USD 200) (Note 7) - 8,518,427 (USD 277,022) 3,415,187 (USD 111,063) 58,702 (USD 1,909) 194,894 (USD 6,338) 168,787 (USD 5,489) 298,275 (USD 9,700) (Note 6) 1,105,782 (CNY 255,000) (Note 14)	595,756 (3,995) 64,084 179,827 (15,085) 2,830 367,117 13,784 11,402 380,398 411,353 (814) 141 (29,572) 4,528 (99,053) 26,815	100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 95.02% 95.02% 95.02% 95.02% 14.25% 100.00% 70.00% 38.50%	595,756 (Note 3) (3,995) (Note 4) 64,084 (Note 3) 179,827 (Note 3) (15,085) (Note 4) 2,830 (Note 4) 367,117 (Note 3) 13,784 (Note 4) 11,402 (Note 4) 361,454 (Note 3) 390,868 (Note 3) (773) (Note 4) 134 (Note 4) (4,214) (Note 4) 4,528 (Note 4) (69,337) (Note 4) 10,324 (Note 4)	11,597,434 20,374 1,825,130 4,420,920 (1,537,050) 451,512 2,059,609 108,840 67,629 3,606,493 1,614,670 20,835 796,445 165,798 (Note 16) 14,738 667,389 25,971	- - - 449,042 (USD 14,603) - - - - - - - - - - - - -

～ 94 ～

Investee Company Name	Main Businesses and Products	Total Amount of Paid-in Capital	Method of Investment	Accumulated Outflow of Investment from Taiwan as of January 1, 2023	Investment Flows	Investment Flows	Accumulated Outflow of Investment from Taiwan as of December 31, 2023	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss)	Carrying Value as of December 31, 2023	Accumulated Inward Remittance of Earnings as of December 31, 2023
					Outflow	Inflow
Shanghai Perfusion Medical Technology Co.,Ltd (“Perfusion”) Shanghai Zhenglang Medical Equipment Co.,Ltd Jiangsu Yudi Optical Co.,Ltd (“Yudi”) Guigang Donghui Medical Investment Co., Ltd. Wangcheng Medical Technology (Chengdu) Co., Ltd (“Wangcheng”) Shanghai Filter Technology Co.,Ltd (“Filter”)	Sales of medical consumables and equipment R&D and manufacture of medical consumables and equipment Medical services Sales and manufacture of optical lens Sales of medical consumables and equipment Sales of medical consumables and equipment	8,673 (CNY 2,000) 325,230 (CNY 75,000) 21,682 (CNY 5,000) 2,928,236 (CNY 675,269) 26,018 (CNY 6,000) 350,728 (CNY 80,880)	(Note 14) (Note 14) (Note 14) (Note 13) (Note 14) (Note 15)	- - - - - -	- - - - - -	- - - - - -	(Note 14) (Note 14) (Note 14) (Note 13) (Note 14) (Note 15)	1,979 (7,784) (2,067) (690,864) 10,080 155,307	49.00% 70.00% 35.70% 13.43% 35.70% 20.01%	970 (Note 4) (5,449) (Note 4) (738) (Note 4) (92,783) (Note 4) 3,599 (Note 4) 31,077 (Note 4)	6,956 222,123 7,012 346,238 (Note 16) 14,504 452,462 (Note 16)	- - - - -

• (Note 1) Indirect investment in Mainland China is through a holding company established in a third country.

• (Note 2) Direct investment in Mainland China.

• (Note 3)Investment income or loss was recognized based on the audited financial statements issued by the auditors of the company or International CPA firm that has a cooperative relationship with ROC CPA firm.

• (Note 4) Investment income or loss was recognized based on the unaudited financial statements of the company.

• (Note 5)The above amounts were translated into New Taiwan dollars at the exchange rate of US$1 ＝ NT$30.75 and CNY$1=NT$4.3364.

• (Note 6) The amount of GRHK reinvestments US$3,500 thousand were excluded.

• (Note 7) The amount of QCES reinvestments US$800 thousand were excluded.

• (Note 8) The amount of QCES reinvestments US$18,500 thousand were excluded.

• (Note 9) The investment was from the operating capital of BBM.

• (Note 10) The reinvestments were from the distribution of dividends of QLLB.

• (Note 11) The reinvestments were from the distribution of dividends of BQHK.

• (Note 12) NSHD is established by NMH's asset division.

• (Note 13) The investment was from the operating capital of NMH. (Note 14) The investment was from the operating capital of BBC.

• (Note 15) The investment was from the operating capital of QCES. (Note 16) Accounting for investments using equity method.

2. Limits on investments in Mainland China:

Accumulated Investment in Mainland China as of December 31, 2023	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
18,409,762 (USD 562,731 and CNY 255,000)	17,610,740 (Note 17) (USD 572,707)	(Note 18)

• (Note 17)The investments amount of $6,116,329 (US$198,905) have yet to be authorized by Investment Commission, MOEA.

• (Note 18) Since the Company has obtained the Certificate of Headquarter Operation, there is no upper limit on investment in Mainland China.

• Significant transactions with investee companies in Mainland China:

The transactions between parent and investee companies in Mainland China have been eliminated when preparing the consolidated financial statements. Please refer to section “Information on Significant Transactions”for detail description.

～ 95 ～

B. BenQ Material Corporation

1. Information on investments in Mainland China:

Investee Company Name	Main Businesses and Products	Total Amount of Paid-in Capital	Method of Investment	Accumulated Outflow of Investment from Taiwan as of January 1, 2023	Investment Flows	Investment Flows	Accumulated Outflow of Investment from Taiwan as of December 31, 2023	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss)	Carrying Value as of December 31, 2023	Accumulated Inward Remittance of Earnings as of December 31, 2023
					Outflow	Inflow
Suzhou Sigma Medical Supplies Co., Ltd. (“SMSZ”) BenQ Materials Medical Supplies (Suzhou) Co., Ltd. (“BMM”) BenQ Materials (Wuhu) Co., Ltd. (“BMW”) BenQ Material (Suzhou) Co., Ltd. (“BMS”) Daxon Biomedical (Suzhou) Co., Ltd. (“DTB”)	Sales of medical consumables and equipment Manufacture and sales of medical consumables Manufacture and sales of optoelectronics film and cosmetics Manufacture of optoelectronics film Service and sales of medical consumables	246,000 (USD8,000) 47,700 (CNY11,000) 346,912 (CNY80,000) 65,046 (CNY15,000) 22,202 (USD722)	(Note 3) (Note 1) (Note 4) (Note 1) (Note 4)	891,750 (USD29,000) - 173,456 (CNY 40,000) - 22,202 (USD722)	- - - - -	641,550 (USD 21,000) - - - -	246,000 (USD 8,000) - 173,456 (CNY 40,000) (Note 5) 22,202 (USD 722) -	62,933 11,963 (84,788) 1,175 (1)	100.00% 100.00% 100.00% 100.00% 100.00%	62,933 (Note 2) 11,963 (Note 2) (83,481) (Note 2) 1,175 (Note 2) (1) (Note 2)	1,907,217 37,864 (265,293) 46,477 1,075	- - - - -

2. Limits on investments in Mainland China:

Investee Company Name	Accumulated Investment in Mainland China as of December 31, 2023	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
BMC	419,456 (USD8,000 and CNY40,000)	531,986 (USD8,000 and CNY65,950)	(Note 7)
SGM	22,202 (USD722)	22,202 (USD722)	80,000

(Note 1) Indirect investment in Mainland China is through a holding company established in a third country.

(Note 2) Investment income or loss was recognized based on the audited financial statements issued by the auditors of BMC. (Note 3) Direct investment in Mainland China.

(Note 4) The reinvestments were from the distribution of dividends of BMLB.

(Note 5) The amount of BMLB reinvestments CNY$10,950 thousand were excluded. (Note 6) The above amounts were translated into New Taiwan dollars at the exchange rate of US$1 ＝ NT$30.75 and CNY$1=NT$4.3364.

(Note 7) Since BenQ Material Corporation has obtained the Certificate of Headquarter Operation, there is no upper limit on investment in Mainland China.

1. Significant transactions with investee companies in Mainland China:

The transactions between BMC and its investee companies in Mainland China have been eliminated when preparing the consolidated financial statements. Please refer to section “Information on Significant Transactions”for detail description.

～ 96 ～

C. BenQ Medical Technology Corp.

1. Information on investments in Mainland China

Investee Company Name	Main Businesses and Products	Total Amount of Paid-in Capital	Method of Investment	Accumulated Outflow of Investment from Taiwan as of January 1, 2023	Investment Flows	Investment Flows	Accumulated Outflow of Investment from Taiwan as of December 31, 2023	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss)	Carrying Value as of December 31, 2023	Accumulated Inward Remittance of Earnings as of December 31, 2023
					Outflow	Inflow
Suzhou Trident Original Medical Technology Co., Ltd. K2 (Shanghai) International Medical Inc. BenQ Medical Technology (Shanghai) Ltd. (“BMTS”) TDX Medical Technology (Jiangsu) Co., Ltd. (“TDX”) LILY Medical (Suzhou) Co., Ltd. (“ALS”)	Sales of medical consumables and equipment Sales of medical consumables Sales of medical consumables and equipment Agency of international and entrepot trade business Sales of medical consumables and equipment	30,750 ( USD 1,000) 6,458 ( USD 210) 86,720 (CNY 20,000) 8,672 (CNY 2,000) 38,438 (USD 1,250)	(Note 3) (Note 2) (Note 2) (Note 1) (Note 2)	30,750 ( USD 1,000) 6,458 ( USD 210) 34,688 (CNY 8,000) - 59,440 (USD 1,933)	- - - - -	- - - - (Note 4)	30,750 ( USD 1,000) 6,458 ( USD 210) 34,688 (CNY 8,000) - 59,440 (USD 1,933)	3,913 13,178 (593) 36,887 14,108	100.00% 100.00% 100.00% 40.00% 22.00%	3,913 (Note 6) (593) (Note 5) 5,548 (Note 5) 3,104 (Note 5) 14,775 (Note 6)	20,920 1,162 - - 50,384	- - - - -

• (Note 1) Indirect investment in Mainland China is through a holding company established in a third country. (Note 2) Direct investment in Mainland China.

(Note 3) Invested in Mainland China is through TDX Medical Technology (Jiangsu) Co., Ltd.

(Note 4) In December 2023, BMTC disposed 40% ownership of TDX. As of December 31, 2023, the amount has yet to be collected and were recognized in other receivables. (Note 5) Investment income or loss was recognized based on the unaudited financial statements of the company.

• (Note 6) Investment income or loss was recognized based on the audited financial statements issued by the auditors of BMTC.

(Note 7) The above amounts were translated into New Taiwan dollars at the exchange rate of US$1 ＝ NT$30.75 and CNY$1=NT$4.3364. (Note 8) There was no shares as the investee company is a limited liability company.

2. Limits on investments in Mainland China:

Investee Company Name	Accumulated Investment in Mainland China as of December 31, 2023	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
BMC	65,438 (USD 1,000 and CNY 8,000)	86,930 (USD 2,827)	659,896
SGM	6,458 (USD 210)	6,458 (USD 210)	121,201
K2	59,440 (USD 1,933)	59,440 (USD 1,933)	380,693

1. Significant transactions with investee companies in Mainland China:

The transactions between BMTC and its investee companies in Mainland China have been eliminated when preparing the consolidated financial statements. Please refer to section “Information on Significant Transactions” for detail description.

～ 97 ～

D. Partner Tech Corp.

1. Information on investments in Mainland China

Investee Company Name	Main Businesses and Products	Total Amount of Paid-in Capital	Method of Investment	Accumulated Outflow of Investment from Taiwan as of January 1, 2023	Investment Flows	Investment Flows	Accumulated Outflow of Investment from Taiwan as of December 31, 2023	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss)	Carrying Value as of December 31, 2023	Accumulated Inward Remittance of Earnings as of December 31, 2023
					Outflow	Inflow
Partner Tech (Shanghai) Co., Ltd. (“PTCM”)	Sales, purchase, import and export of electronic products	107,625 ( USD 3,500)	(Note 1)	107,625 ( USD 3,500)	-	-	107,625 ( USD 3,500)	(12,850)	100.00%	(12,850) (Note 2)	57,664	-

(Note 1) Indirect investment in Mainland China is through a holding company established in a third country.

(Note 2) Investment income or loss was recognized based on the audited financial statements issued by the auditors of PTT.

(Note 3) The above amounts were translated into New Taiwan dollars at the exchange rate of US$1 ＝ NT$30.75.

2. Limits on investments in Mainland China:

Investee Company Name	Accumulated Investment in Mainland China as of December 31, 2023	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
PTT	107,625 (USD 3,500)	(USD 6,906) 212,360	695,962

1. Significant transactions with investee companies in Mainland China:

The transactions between PTT and its investee companies in Mainland China have been eliminated when preparing the consolidated financial statements. Please refer to section “Information on Significant Transactions” for detail description.

～ 98 ～

E. DFI Inc.

1. Information on investments in Mainland China

Investee Company Name	Main Businesses and Products	Total Amount of Paid-in Capital	Method of Investment	Accumulated Outflow of Investment from Taiwan as of January 1, 2023	Investment Flows	Investment Flows	Accumulated Outflow of Investment from Taiwan as of December 31, 2023	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss)	Carrying Value as of December 31, 2023	Accumulated Inward Remittance of Earnings as of December 31, 2023
					Outflow	Inflow
Yan Ying Hao Trading (ShenZhen) Co., Ltd. (“DYTH”) Yan Tong Infotech (Dongguan) Co., Ltd. (“DYTI”)	Wholesale, import and export of industrial motherboards and component Manufacture and sales of industrial motherboards and component	- 13,840	(Note 1) (Note 1)	- -	- -	- -	- -	6,898 (30,156)	- 100.00%	6,898 (Note 2) (30,156) (Note 2)	(Note 7) 18,880	97,179 -

2. Limits on investments in Mainland China:

2. Limits on investments in Mainland China:
Investee Company Name	Accumulated Investment in Mainland China as of December 31, 2023	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
DFI	- (Note 3)	64,114 (USD 2,085) (Note 5 and 6)	2,989,729 (Note 4)

(Note 1) Indirect investment in Mainland China is through a holding company established in a third country.

(Note 2) Investment income or loss was recognized based on the audited financial statements issued by the auditors of DFI.

(Note 3) The reinvestments and authorized amount of DFI's subsidiaries is excluded from DFI's accumulated investment amounts and the investment amounts authorized by Investment Commission, MOEA. (Note 4) Pursuant to “Principle of Investment or Technical Cooperation in Mainland China”, investment amounts in Mainland China shall not exceed the 60% net worth of the company. (Note 5) The investment amount of Dongguan Ri Tong Trading Co., Ltd. that has been liquidated was approved by Investment Commission, MOEA in August 2014 and had been deducted in the investment amount. (Note 6) The earnings that has been remitted to DFI by DYTI was approved by the Investment Commission of the MOEA in February 2017 and had been deducted in the investment amount. (Note 7) The liquidation of Yan Tong Infotech (Dongguan) Co., Ltd. had been completed in August 2023 and the deregistration had been completed in November 2023. (Note 8) The above amounts were translated into New Taiwan dollars at the exchange rate of US$1 ＝ NT$30.75.

3. Significant transactions with investee companies in Mainland China:

The transactions between DFI and its investee companies in Mainland China have been eliminated when preparing the consolidated financial statements. Please refer to section “Information on Significant Transactions” for detail description.

～ 99 ～

F. Aewin Technologies Co., Ltd.

1. Information on investments in Mainland China

Investee Company Name	Main Businesses and Products	Total Amount of Paid-in Capital	Method of Investment	Accumulated Outflow of Investment from Taiwan as of January 1, 2023	Investment Flows	Investment Flows	Accumulated Outflow of Investment from Taiwan as of December 31, 2023	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss)	Carrying Value as of December 31, 2023	Accumulated Inward Remittance of Earnings as of December 31, 2023
					Outflow	Inflow
Aewin (Shenzhen) Technologies Co., Ltd. Aewin Beijing Technologies Co., Ltd.	Wholesale of computer peripheral products and software Wholesale of computer peripheral products and software	46,129 15,265	(Note 1) (Note 2)	46,129 -	- -	- -	46,129 -	1,415 (39,601)	100.00% 100.00%	(39,601) (Note 3) 1,415 (Note 3)	146,269 (741)	- -

1. Limits on investments in Mainland China:

2. Limits on investments in Mainland China:
Investee Company Name	Accumulated Investment in Mainland China as of December 31, 2023	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
AEWIN	46,129 (USD 1,500)	61,500 (USD 2,000)	753,616 (Note 4)

(Note 1) Indirect investment in Mainland China is through a holding company established in a third country.

• (Note 2) Invested in Mainland China through Aewin Beijing Technologies Co., Ltd.

• (Note 3) Investment income or loss was recognized based on the audited financial statements by the auditors of AEWIN

• (Note 4) Pursuant to “Principle of Investment or Technical Cooperation in Mainland China”, investment amounts in Mainland China shall not exceed the 60% net worth of the company.

(Note 5) The above amounts were translated into New Taiwan dollars at the exchange rate of US$1 ＝ NT$30.75.

3. Significant transactions with investee companies in Mainland China:

The transactions between AEWIN and its investee companies in Mainland China have been eliminated when preparing the consolidated financial statements. Please refer to section “Information on Significant Transactions” for detail description.

～ 100 ～

G. Ace Pillar Co., Ltd.

1. Information on investments in Mainland China

Investee Company Name	Main Businesses and Products	Total Amount of Paid-in Capital	Method of Investment	Accumulated Outflow of Investment from Taiwan as of January 1, 2023	Investment Flows	Investment Flows	Accumulated Outflow of Investment from Taiwan as of December 31, 2023	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss)	Carrying Value as of December 31, 2023	Accumulated Inward Remittance of Earnings as of December 31, 2023
					Outflow	Inflow
Standard International Trading (Shanghai) Co., Ltd. Tianjin Ace Pillar Co., Ltd. Grace Transmission (Tianjin) Co., Ltd. Advancedtek Ace (TJ) Inc. Suzhou Super Pillar Automation Equipment Co., Ltd.	Sales of semiconductor optoelectronics equipment and consumables and equipment repair services Sales of automation mechanical transmission system and component Manufacture of automation mechanical transmission system and component Electronic system integration Manufacture of automation mechanical transmission system and component	1,085,383 7,242 9,225 44,588 14,760	(Note 1) (Note 1) (Note 1) (Note 1) (Note 1)	59,963 4,920 4,613 (Note 2) 14,760	- - - - -	- - - - -	59,963 4,920 4,613 (Note 2) 14,760	2 456 1,461 14,473 (43,543)	100.00% 100.00% 100.00% 100.00% 100.00%	(43,543) (Note 3) 2 (Note 3) 456 (Note 3) 1,461 (Note 3) 14,773 (Note 3)	493,717 4,099 2,568 107,603 107,939	125,533 134,972 - - -

2. Limits on investments in Mainland China:

2. Limits on investments in Mainland China:
Investee Company Name	Accumulated Investment in Mainland China as of December 31, 2023	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
ACE	157,409 (USD 5,119)	157,409 (USD 5,119)	1,238,555 (Note 5)
STC	14,760 (USD 480)	14,760 (USD 480)	113,103 (Note 5)

(Note 1) Indirect investment in Mainland China is through a holding company established in a third country.

• (Note 2) Established by Cyber South's reinvestment.

(Note 3) Investment income or loss was recognized based on the audited financial statements by the auditors of ACE. (Note 4) The above amounts were translated into New Taiwan dollars at the exchange rate of US$1 ＝ NT$30.75 and CNY$1=NT$4.3364.

• (Note 5) Pursuant to “Principle of Investment or Technical Cooperation in Mainland China”, investment amounts in Mainland China shall not exceed the 60% net worth of the company.

3. Significant transactions with investee companies in Mainland China:

The transactions between ACE and its investee companies in Mainland China have been eliminated when preparing the consolidated financial statements. Please refer to section “Information on Significant Transactions” for detail description.

～ 101 ～

H. Data Image Corporation

1. Information on investments in Mainland China

Investee Company Name	Main Businesses and Products	Total Amount of Paid-in Capital	Method of Investment	Accumulated Outflow of Investment from Taiwan as of January 1, 2023	Investment Flows	Investment Flows	Accumulated Outflow of Investment from Taiwan as of December 31, 2023	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss) (Note 2)	Carrying Value as of December 31, 2023	Accumulated Inward Remittance of Earnings as of December 31, 2023
					Outflow	Inflow
Data Image (Suzhou) Corporation	Manufacture and sales of LCD	534,081	(Note 1)	511,884	-	-	511,884	63,199	100.00%	63,199	470,745	-

2. Limits on investments in Mainland China:

Accumulated Investment in Mainland China as of December 31, 2023	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
USD 15,654	USD 16,952	(Note 3) 890,107

(Note 1) Indirect investment in Mainland China is through a holding company established in a third country. (Note 2) Investment income or loss was recognized based on the audited financial statements issued by the auditors of DIC. (Note 3) Investment amounts in Mainland China shall not exceed the 60% net worth of DIC according to MOEA letter No. 09704604680.

3. Significant transactions with investee companies in Mainland China:

The transactions between DIC and its investee companies in Mainland China have been eliminated when preparing the consolidated financial statements. Please refer to section “Information on Significant Transactions” for detail description.

～ 102 ～

I.DIVA Laboratories. Ltd.

1. Information on investments in Mainland China

Investee Company Name	Main Businesses and Products	Total Amount of Paid-in Capital	Method of Investment	Accumulated Outflow of Investment from Taiwan as of January 1, 2023	Investment Flows	Investment Flows	Accumulated Outflow of Investment from Taiwan as of December 31, 2023	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss) (Note 2)	Carrying Value as of December 31, 2023	Accumulated Inward Remittance of Earnings as of December 31, 2023
					Outflow	Inflow
Suzhou Diva Lab. Inc.	Wholesale and import and export of medical equipment	52,643	(Note 1)	52,643	-	-	52,643	1,253	100.00%	1,253	9,602	-

2. Limits on investments in Mainland China:

2. Limits on investments in Mainland China:
Accumulated Investment in Mainland China as of December 31, 2023	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
USD 1,725	USD 2,000	619,681 (Note 3)

(Note 1) Indirect investment in Mainland China is through a holding company established in a third country. (Note 2) The above amounts have been eliminated when preparing the consolidated financial statements. (Note 3) Investment amounts in Mainland China shall not exceed the limit of net worth of DIVA according to MOEA letter No. 09704604680.

3. Significant transactions with investee companies in Mainland China:

The transactions between DIVA and its investee companies in Mainland China have been eliminated when preparing the consolidated financial statements. Please refer to section “Information on Significant Transactions” for detail description.

～ 103 ～

J. Simula Technology Inc.

1. Information on investments in Mainland China

Investee Company Name	Main Businesses and Products	Total Amount of Paid-in Capital	Method of Investment	Accumulated Outflow of Investment from Taiwan as of January 1, 2023	Investment Flows	Investment Flows	Accumulated Outflow of Investment from Taiwan as of December 31, 2023	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss)	Carrying Value as of December 31, 2023	Accumulated Inward Remittance of Earnings as of December 31, 2023
					Outflow	Inflow
Simula Technology (ShenZhen) Co., Ltd. Opti Cloud Technologies, Inc.	R&D of High-speed optical transmission cable and module product technology Manufacture of electronic connector, socket and plastic hardware	191,437 137,336	(Note 1) (Note 1)	141,375 95,099	- -	- -	141,375 95,099 (Note 4)	(2,830) (46,191)	(Note 4) 100.00%	(46,191) (Note 2) (1,448) (Note 2)	132,843 (Note 3)	- -
307,187 1,251,806 2. Limits on investments in Mainland China: Investee Company Name Accumulated Investment in Mainland China as of December 31, 2023 Investment Amounts Authorized by Investment Commission, MOEA Upper Limit on Investment Simula 257,755
Investee Company Name		Accumulated Investment in Mainland China as of December 31, 2023		Investment Amounts Authorized by Investment Commission, MOEA			Upper Limit on Investment
Simula		257,755		307,187			1,251,806

(Note 1) Indirect investment in Mainland China is through a holding company established in a third country. (Note 2) Investment income or loss was recognized based on the audited financial statements by the auditors of Simula. (Note 3) The liquidation procedure of Opti Cloud Technologies, Inc. had been completed on November 9, 2023 .

3. Significant transactions with investee companies in Mainland China:

The transactions between Simula and its investee companies in Mainland China have been eliminated when preparing the consolidated financial statements. Please refer to section “Information on Significant Transactions” for detail description.

～ 104 ～

K.Alpha Networks Inc.

1. Information on investments in Mainland China

Investee Company Name	Main Businesses and Products	Total Amount of Paid-in Capital	Method of Investment	Accumulated Outflow of Investment from Taiwan as of January 1, 2023	Investment Flows	Investment Flows	Accumulated Outflow of Investment from Taiwan as of December 31, 2023	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss) (Note 2)	Carrying Value as of December 31, 2023	Accumulated Inward Remittance of Earnings as of December 31, 2023
					Outflow	Inflow
Alpha Networks (Dongguan) Co., Ltd. Alpha Networks (Chengdu) Co.,Ltd. Mirac Networks (Dongguan) Co.,Ltd. Alpha Networks (Changshu Trading)Co.,Ltd. Alpha Networks (Changshu) Co., Ltd.	Production and sale of network products Research and development of network products Production and sale of network products Production and sale of networkproducts Production and sale of network products	420,426 97,023 107,131 (Note 9) 1,925,920 17,378	(Note 1 and 8) (Note 1) (Note 1 ) (Note 1) (Note 1)	420,426 741,084 307,326 1,925,920 -	- - - - -	626,887 - - - -	420,426 114,197 (Note 6) 307,326 1,925,920 -	22,942 (13,388) (183,206) 29,528 21,245	100.00% 100.00% 100.00% 100.00% 100.00%	21,245 (183,206) 29,528 22,942 (13,388)	463,192 (21,416) 122,511 1,177,637 4,211	147,231 692,935 - - -

2. Limits on investments in Mainland China:

2. Limits on investments in Mainland China:
Investee Company Name	Accumulated Investment in Mainland China as of December 31, 2023	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
Alpha	2,634,897 (Note 3、4 and 7)	3,496,798	(Note 5)

(Note 1) Indirect investment in Mainland China is through a holding company established in a third country.

(Note 2) Investment income or loss was recognized based on the audited financial statements by the auditors of Alpha.

(Note 3) Accumulated investments in Alpha Dongguan did not include the previously invested by D-Link Corporation HKD69,387 thousand (equivalent to approximately $303,055 thousand).

(Note 4) Alpha indirectly investment the subsidiary Tongying Trading (Shenzhen) Co., Ltd., has liquidated all rights and obligations in March 2008 and cancelled the registration.Accumulated outflow of $9,828 thousand in Tongying Trading (Shenzhen) Co., Ltd., less the remittance amount of $4,367 thousand equals $5,461 thousand. It is still necessary to include in the accumulated investment amount by the principle of Investment Commission, MOEA.

(Note 5) As Alpha has obtained the certificate No. 11120417620 of being qualified for operating headquarters issued by Ministry of Economic Affairs on June, 8 2022, the upper limit on investment in mainland China pursuant to “Principle of investment or Technical Cooperation in Mainland China”issued by Investment Commission, MOEA on August, 29, 2008 is not applicable.

(Note 6) The investment of $46,412 thousand is from the operating capital of D-Link Asia, so the accumulated investment amount from Taiwan is excluded at the end of the period.

(Note 7) Alpha indirectly investment the subsidiary Mingzhen (Changshu) has liquidated all rights and obligations on July 23, 2018 and cancelled the registration. Accumulated outflow of $164,622 thousand is still necessary to include in the accumulated investment amount by the principle of Investment Commission, MOEA.

(Note 8) Alpha CD was previously reinvested through D-Link Asia. D-Link Asia entered into an agreement with Alpha to transfer the entire ownership of Alpha CD to Alpha on June 15, 2023. (Note 9) On December 19, 2022, the related registration of capital reduction has been completed while the capital has not been remitted as of December 31, 2023.

3. Significant transactions with investee companies in Mainland China:

The transactions between Alpha and its investee companies in Mainland China have been eliminated when preparing the consolidated financial statements. Please refer to section “Information on Significant Transactions” for detail description.

～ 105 ～

L.Hitron Technologies Inc.

1. Information on investments in Mainland China

Investee Company Name	Main Businesses and Products	Total Amount of Paid-in Capital	Method of Investment	Accumulated Outflow of Investment from Taiwan as of January 1, 2023	Investment Flows	Investment Flows	Accumulated Outflow of Investment from Taiwan as of December 31, 2023	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss)	Carrying Value as of December 31, 2023	Accumulated Inward Remittance of Earnings as of December 31, 2023
					Outflow	Inflow
IHC HJT HSZ	Technical consultation on electronic communication, technology research and development, maintenance and after-sale service Production and sale of broadband telecommunications products Sale of broadband network products and related services	171,245 31,139 5,814	(Note 1) (Note 1) (Note 1 and 3)	641,763 31,139 12,048	- - -	- 470,518 -	171,245 31,139 12,048	2,562 49,387 (11)	100.00% 100.00% 36.39%	49,387 (Note 2) (11) (Note 2) 1,020	190,836 3,670 4,945	- - 24,264

2. Limits on investments in Mainland China:

2. Limits on investments in Mainland China:
Investee Company Name	Accumulated Investment in Mainland China as of December 31, 2023	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
Hitron	214,432	214,432	2,951,701

(Note 1) Indirect investment in Mainland China is through a holding company established in a third country.

(Note 2) Investment income or loss was recognized based on the audited financial statements by the auditors of Hitron. (Note 3) IHC is a China based investment company which was originally invested by Hitron (Samoa) , however, IHC has been 100% owned by IDT due to the Group's restructuring decision resolved in year 2012.

3. Significant transactions with investee companies in Mainland China:

The transactions between Hitron and its investee companies in Mainland China have been eliminated when preparing the consolidated financial statements. Please refer to section “Information on Significant Transactions” for detail description.

～ 106 ～

107

Qisda Corporation

Statement of Cash and Cash Equivalents

December 31, 2023

(Expressed in Thousands of New Taiwan Dollars)

Items Demand deposits Foreign currency deposits (Note)	Description Amount $ 180,482 USD：75,413 thousand 2,318,943 EUR：496 thousand 16,874 Others 16,657 $ 2,532,956

Note: Foreign currency deposits were translated at the spot exchange rate on December 31, 2023 as follows: USD ： NTD = 1 ： 30.75

EUR ： NTD = 1 ： 34.034

Statement of Financial Assets at Fair Value through － Profit or Loss Current

Name of Financial Instrument Privately held equity securities－ITH Corp. Foreign currency forward contracts	Share Amount 3,000 $ 96,126 - 37,360 $ 133,486

(Continued)

108

Qisda Corporation

Statement of Notes and Accounts Receivable

December 31, 2023

(Expressed in Thousands of New Taiwan Dollars)

	Client Name		Amount
Customer A		$	4,277,741
Customer B			804,997
Customer C			756,835
Others (Note)			3,127,565
			8,967,138
Less: loss allowance			(47,079)
		$	8,920,059

Note: The amount of each item in others did not exceed 5% of the account balance.

(Continued)

109

Qisda Corporation

Statement of Inventories

December 31, 2023

(Expressed in Thousands of New Taiwan Dollars)

Item Raw materials Work in progress Finished goods Work in process－outsourced Inventories in transit	Amount	Amount
	Carrying Amount (Note) $ 851,305 141,245 4,687,098 469,966 49,658 $ 6,199,272	Net Realizable Value
		892,353 141,245 4,706,422 469,966 49,752
		6,259,738

Note: Provision of inventory obsolescence has been deducted.

Statement of Other Current Assets

	Item		Amount
Prepaid software expenses		$	23,351
Excess business tax paid			8,575
Deferred modeling expense			2,608
Others			15,998
		$	50,532

(Continued)

110

Qisda Corporation

－ Statement of Changes in Financial Assets at Fair Value through Other Comprehensive Income Non-Current

For the year ended December 31, 2023

(Expressed in Thousands of New Taiwan Dollars/Shares)

Name Listed stocks－AU Optronics Corp. (“AU”) Over-the-counter (OTC) stocks－APLEX Technology, Inc. Privately held stocks－TXOne Networks Inc. Privately held stocks－SCT Holdings	Balance as of January 1, 2023 Share Amount 530,879 $ 7,963,184 1,388 64,241 909 155,170 - - $ 8,182,595	Addition Share Amount - - - - - - 800 60,528 60,528	Decrease Share Amount - - - - - - - - -	Unrealized Gain (Loss) 1,672,268 7,909 (155,170) (58,394) 1,466,613	Balance as of December 31, 2023 Share Amount Collateral 530,879 9,635,452 1,388 72,150 - 909 - - 800 2,134 - 9,709,736
	Share 530,879 1,388 909 -	Share - - - 800	Share - - - -		Share 530,879 1,388 909 800

(Continued)

111

Qisda Corporation － Statement of Other Financial Assets Non-Current December 31, 2023 (Expressed in Thousands of New Taiwan Dollars)

Item Amount Refundable deposits $ 38,565 Statement of Other Non-Current Assets Item Amount － Deferred cost issuance cost from syndicated loan $ 20,593

(Continued)

112

Qisda Corporation

Statement of Changes in Investments Accounted for Using the Equity Method

For the year ended December 31, 2023

(Expressed in Thousands of New Taiwan Dollars / Shares)

Name of Investee	Balance as of January 1, 2023	Balance as of January 1, 2023	Additions	Additions	(Note 1)	Decrease	(Note 2)	(Note 2)		Investment Income (Loss)		Other Adjustments (Note 3)	Balance as of December 31, 2023	Balance as of December 31, 2023	Balance as of December 31, 2023	Balance as of December 31, 2023	Market Value or Net Assets Value Unit Price Total (in dollars) Amount Collateral 28.36 9,074,526 - 142.89 16,325,539 - 54.20 3,143,871 - 18.91 3,804,909 - 25.94 2,816,442 - 7.33 366,535 - 45.87 275,239 - 34.65 1,512,784 - - 40,250 - 70.58 70,580 - 197.18 1,971,800 - 8.87 1,331 - 26.85 1,170,042 - 66.90 3,452,709 - 1.31 36,561 - 10.17 1,017 - 11.57 69,424 - 37.75 11,166,337 - - - - 68.62 1,372,400 - 91,688.00 91,688 - 69.70 6,749,818 - 88.20 507,150 - - 304,885 - - 795,686 - 28.10 843,000 - 32.26 322,588 - 108.96 514,309 - 60.64 137,042 - -
	Share	Amount	Share		Amount	Share		Amount					Share	Percentage of Ownership		Amount	Unit Price (in dollars)
BenQ QLLB DFN APV BBHC QLPG Darly BMC QJTO QALA Norbel H2 Energy Co., Ltd. PTT DFI BDT QTOS Q.S.Control Corp. Alpha K2 DIC EASC MTG (formerly Sysage) Topview QVH BBC SIMULA GSC TCI Gene Rapidtek Less: adjustments of unrealized profits and losses resulting from transactions with subsidiaries and associates	320,000 114,250 58,005 164,197 47,970 50,000 6,000 43,659 - 1,000 - - 43,577 51,610 28,000 100 6,000 295,797 6,997 20,000 1 96,841 5,750 - - 30,000 10,000 4,720 2,260	$ 13,906,440 15,819,298 2,187,968 3,296,425 1,112,972 393,228 234,647 747,284 42,050 62,851 - - 1,340,171 2,837,400 42,236 1,011 63,413 8,015,079 240,793 431,334 90,831 2,632,118 253,549 493,111 727,761 686,287 341,702 532,267 156,458 56,688,684 (306,679) $ 56,382,005	- - - 36,984 60,585 - - - - - 10,000 150 - - - - - - - - - - - - - - 7,500 - 378		- - - - 6,285,683 - - - - - 1,800,000 1,500 - - - - - - - - - - - - 154,976 - - - - 8,242,159 - 8,242,159	- - - - - - - - - - - - - - - - - - (6,997) - - - - - - - - - -		(6,428,391) - (174,014) - - - - (87,318) - - (100,000) - (43,577) (206,440) - (8) - (499,897) (31,487) (100,000) - (193,682) (28,750) - - (75,001) (23,801) (9,440) (2,187) (8,003,993) - (8,003,993)		1,446,624 534,692 334,479 315,069 203,563 (11,938) 44,410 59,168 (2,839) 7,800 10,786 (169) 38,365 82,616 (5,675) 14 6,011 205,082 18,105 80,620 955 302,128 32,861 (188,191) (75,365) (47,006) 4,687 (11,890) (9,511) 3,375,451 (37,090) 3,338,361		149,853 (28,451) 197,806 193,415 (4,785,776) (14,755) (3,818) (3,440) 1,039 (71) (316) - 131 4,839 - - - 4,911 (227,411) (1,847) (98) (3,536) 273,048 (35) (11,686) 960 - 3,372 (7,718) (4,259,584) - (4,259,584)	320,000 114,250 58,005 201,181 108,555 50,000 6,000 43,659 - 1,000 10,000 150 43,577 51,610 28,000 100 6,000 295,797 - 20,000 1 96,841 5,750 - - 30,000 17,500 4,720 2,638	100.00 100.00 20.87 100.00 44.32 100.00 100.00 13.61 100.00 100.00 28.54 30.00 58.04 45.08 100.00 100.00 20.00 54.60 - 28.82 54.00 51.41 20.00 100.00 70.00 37.51 50.00 17.84 8.79		9,074,526 16,325,539 2,546,239 3,804,909 2,816,442 366,535 275,239 715,694 40,250 70,580 1,710,470 1,331 1,335,090 2,718,415 36,561 1,017 69,424 7,725,175 - 410,107 91,688 2,737,028 530,708 304,885 795,686 565,240 322,588 514,309 137,042 56,042,717 (343,769) 55,698,948	28.36 142.89 54.20 18.91 25.94 7.33 45.87 34.65 - 70.58 197.18 8.87 26.85 66.90 1.31 10.17 11.57 37.75 - 68.62 91,688.00 69.70 88.20 - - 28.10 32.26 108.96 60.64

Note	1: Additions arose from the increase in investment for a cash consideration of $7,613,201 and an	1: Additions arose from the increase in investment for a cash consideration of $7,613,201 and an	investment payable of $628,958.
Note	2: Decrease arose from cash dividends received from investees.
Note	3: Other adjustments
	Foreign currency translation differences	$	(198,384)
	Unrealized gain (loss) from investments in equity instruments measured at FVOCI		672,183
	Change in capital surplus		30,239
	Difference between consideration and carrying amount arising from acquisition or
	disposal of shares of subsidiaries (capital surplus and retained earnings)		(4,690,491)
	Remeasurements of defined benefit plans		2,548
	Gain on disposal of investments		273,124
	Proceeds from disposal of investments accounted for using the equity method		(348,803)
		$	(4,259,584)

(Continued)

113

Qisda Corporation

Statement of Notes and Accounts Payable

December 31, 2023

(Expressed in Thousands of New Taiwan Dollars)

Vendor Name		Amount
Vendor A	$	551,212
Vendor B		272,049
Vendor C		122,289
Vendor D		92,224
Others (Note)		719,356
	$	1,757,130
Note: The amount of each item in others did not exceed 5% of the account balance.

Statement of Short-Term Borrowings

Type of Loan	Creditor The Export-Import Bank of the Republic of China CTBC Bank Taishin International Bank Taipei Fubon Bank DBS Bank Mega International Commercial Bank	Ending Balance $ 600,000 1,000,000 1,000,000 2,000,000 900,000 1,000,000 $ 6,500,000	Contract Period 2023/12~2024/12 2023/06~2024/06 2023/06~2024/06 2023/08~2024/08 2023/10~2024/10 2023/06~2024/06	Interest Rates 1.63%~1.7059%	Credit Facilities Collateral 600,000 - 1,000,000 - 3,000,000 - 2,000,000 - 922,500 - 1,845,000 -
Unsecured loan Unsecured loan Unsecured loan Unsecured loan Unsecured loan Unsecured loan

(Continued)

114

Qisda Corporation

Statement of Other Payables

December 31, 2023

(Expressed in Thousands of New Taiwan Dollars)

	Item		Amount
Salaries and bonus payables		$	901,325
Investments payables			628,958
Others (Note)			870,662
		$	2,400,945

Note: The amount of each item in others did not exceed 5% of the account balance.

Statement of Other Current Liabilities

	Item		Amount
Government grants received in advance		$	12,118
Others			58,309
		$	70,427

(Continued)

115

Qisda Corporation

Statement of Lease Liabilities (Including Current and Non-Current)

December 31, 2023

(Expressed in Thousands of New Taiwan Dollars)

Item Buildings Current Non-current	Lease Term 2017/08～2027/07	Discount Rate (%) Balance at December 31, 2023 1.797% $ 509,752 $ 139,704 $ 370,048

Statement of Other Non-Current Liabilities

Item		Amount
Defined benefit liabilities	$	267,161
Others (Note)		9,781
	$	276,942
Note: The amount of each item in others did not exceed 5% of the account balance.

(Continued)

116

Qisda Corporation

Statement of Long-Term Debt

December 31, 2023

(Expressed in Thousands of New Taiwan Dollars)

			Loan
Creditor	Description		Amount	Contract Period	Interest Rates	Collateral
Bank of Taiwan and	5 yeas syndicated loan	$	3,600,000	2021/12~2026/12		-
other banks
Bank of Taiwan and	5 years syndicated loan		12,000,000	2023/10~2028/10		-
other banks
Bank of Taiwan and	5 years syndicated loan		3,030,000	2020/12~2025/12		-
other banks
Yuanta Commercial Bank	3 years loan		500,000	2021/09~2024/09		-
Taishin International Bank	5 years loan		159,383	2019/10~2024/10		-
The Export-Import Bank of	5 years loan		207,965	2019/12~2024/12		-
the Republic of China
Bank of Taiwan	7 years loan		433,456	2019/10~2026/10		-
Hua Nan Bank	2 years loan		2,000,000	2022/05~2024/05		-
			21,930,804		1.30%~2.023%
Less: current portion of long-term debt			(525,193)
		$	21,405,611

(Continued)

117

Qisda Corporation

Statement of Operating Revenue

For the year ended December 31, 2023

(Expressed in Thousands of New Taiwan Dollars)

	Item		Amount
IT products		$	64,445,459
Digital media products			9,171,835
Others			3,548,080
Less: Sales returns and allowance			(1,739,895)
		$	75,425,479

(Continued)

118

Qisda Corporation

Statement of Operating Cost

For the year ended December 31, 2023

(Expressed in Thousands of New Taiwan Dollars)

Items		Amount
Raw materials
Raw materials, beginning of year	$	334,951
Add: Work in process－outsourced, beginning of year		764,626
Purchase of raw materials		7,779,558
Less: Raw materials, end of year		(878,928)
Transferred to other expenses		(7,664)
Work in process－outsourced, end of year		(469,966)
Scrap of raw materials		(3,671)
Sales of raw materials		(74,144)
Raw materials used		7,444,762
Direct labor		188,692
Manufacturing overhead		976,631
Manufacturing cost		8,610,085
Add: Work in process, beginning of year		168,200
Less: Work in process, end of year		(141,245)
Transferred to other expenses		(2,844)
Sales of work in process		(899,257)
Scrap of work in process		(1,357)
Cost of goods manufactured		7,733,582
Add: Finished goods, beginning of year		5,204,600
Inventories in transit, beginning of year		82,087
Purchase of finished goods		62,862,487
Transferred from other expenses		4,231
Less: Finished goods, end of year		(4,690,138)
Inventories in transit, end of year		(49,658)
Scrap of finished goods		(1,798)
Cost of goods sold		71,145,393
Write-down of inventories		12,090
Royalty cost		77,519
Sales of raw materials and work in process		973,401
Warranty cost		8,276
The deduction of other costs		(369,506)
Cost of revenue	$	71,847,173

(Continued)

119

Qisda Corporation

Statement of Selling Expenses

For the year ended December 31, 2023

(Expressed in Thousands of New Taiwan Dollars)

	Item		Amount
Salaries		$	540,846
Warehouse rental expense			212,628
Insurance expense			101,940
Commission expense			69,453
Others (Note)			250,931
		$	1,175,798

Note: The amount of each item in others did not exceed 5% of the account balance.

Statement of Administrative Expenses

	Item		Amount
Salaries		$	339,828
Professional service fees			101,762
Depreciation expense			154,837
Others (Note)			222,911
		$	819,338

Note: The amount of each item in others did not exceed 5% of the account balance.

(Continued)

120

Qisda Corporation

Statement of Research and Development Expenses

For the year ended December 31, 2023

(Expressed in Thousands of New Taiwan Dollars)

	Item		Amount
Salaries		$	1,588,640
Inspection and test fees			176,846
Modeling expense			125,803
Others (Note)			376,652
		$	2,267,941

Note: The amount of each item in others did not exceed 5% of the account balance.

For details on statement of Accounts Receivable (Payable) from Related Parties and Other Receivables (Payables) from Related Parties, please refer to note 7.

For details on statement of Other Receivables, please refer to note 6(e).

For details on statement of Changes in Property, Plant and Equipment, please refer to note 6(h).

For details on statement of Changes in Accumulated Depreciation of Property, Plant and Equipment, please refer to note 6(h).

For details on statement of Changes in Right-of-Use Assets, please refer to note 6(i).

For details on statement of Changes in Investment Property, please refer to note 6(j).

For details on statement of Changes in Intangible Assets, please refer to note 6(k).

For details on statement of Changes in Deferred Income Tax Assets, please refer to note 6(s).

For details on statement of Contract Liabilities, please refer to note 6(v).

－ For details on statement of Provisions Current/Non-Current, please refer to note 6(p).

For details on statement of Bonds Payable, please refer to note 6(n).

For details on statement of Deferred Income Tax Liabilities, please refer to note 6(s).

For details on statement of Other Income, please refer to note 6(x).

For details on statement of Other Gains and Losses, please refer to note 6(x).

For details on statement of Finance Costs, please refer to note 6(x).