RADIUM — Audit Report / Information 2023

Nov 13, 2023

Stock Code: 2547

Radium Life Tech Co., Ltd.

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

Address: 14F, No. 209, Section 1, Civic Boulevard, Datong District, Taipei City TEL: (02)77338888

• 1 -

Independent Auditor’s Report

The Board of Directors and Shareholders

Radium Life Tech Co., Ltd.,

Opinion

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

In our opinion, the accompanying parent company only financial statements present fairly, in all material respects, the accompanying parent company only financial position of the Company as of December 31, 2023 and 2022, and its parent company only financial performance and its parent company only 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 audit in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and auditing standards. 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 the Company 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. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for 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 for the year ended December 31, 2023. 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, we do not provide a separate opinion on these matters.

• 2 -

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

Valuation of property inventories

As shown in Note 12 to the parent company only financial statements, as of December 31, 2023, the property in the inventory category of the parent company only balance sheet (including property under development, property to be developed, and buildings and land held for sale) totaled NT$6,725,688 thousand, accounting for 19% of the parent company only total assets; therefore, it is material. As the allowance for inventory valuation loss of relevant property involves significant judgments on accounting estimates and other important judgments by the management, the relevant details are as described in Note 5 to the parent company only financial statements, so we have listed it as a key audit matter.

• The audit procedures performed by us for the valuation of property inventories include:

• The amount of property under development recognized is NT$3,035,130 thousand, accounting for about 45% of the total inventories. We have obtained relevant information on the estimated remaining cost of the property under development, and sampled the basis for such estimates; calculated the expected total revenue based on the recent transaction prices near the property under development from a selling price disclosure website, and compared them with the sum of the property under development and the estimated remaining investment costs recognized in the account.

• The portion of the property to be developed and the buildings and land held for sale recognized is NT$3,690,558 thousand, which accounts for about 55% of the total inventories, and we have obtained the net realizable value and impairment assessment data calculated by the Company for the above-mentioned property inventories and reviewed whether the assessment results were reasonable.

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 parent company 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 the Company’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 the Company 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 the Company’s financial reporting process.

• 3 -

Auditor's 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 assurance but is not a guarantee that an audit conducted in accordance with the auditing standards will always detect a material misstatement when it exists. Misstatement 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 the users taken on the basis of these parent company only financial statements.

As part of an audit in accordance with the auditing standards, we exercise professional judgement and maintain 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 the Company's internal control.

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

4. Conclude on the appropriateness of the 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 the Company'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 auditor's report. However, future events or conditions may cause the Company 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 and appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the parent company only financial statements. We are responsible for the direction, supervision, and performance of the group audit. We remain solely responsible for our audit opinion.

We communicated 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 identified during our audit.

• 4 -

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

From the matters communicated with those charged with governance, we determined those matters that were of most significance in the audit of parent company only financial statements for the year ended December 31, 2023 and are therefore the key audit matters. We describe these matters in our auditors' report unless law or regulations 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 Yang, ChingCheng and Fang, Alice.

Yang, ChingCheng Fang, Alice

Deloitte & Touche Taipei, Taiwan Republic of China March 12, 2024

Notice 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 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 applied in the Republic of China.

For the convenience of readers, the independent auditors’ report and the accompanying parent company only financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language independent auditors’ report and parent company only financial statements shall prevail.

• 5 -

Radium Life Tech Co., Ltd.

PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2023 AND 2022

(In Thousands of New Taiwan Dollars)

==> picture [670 x 735] intentionally omitted <==

----- Start of picture text -----

December 31, 2023 December 31, 2022
ASSETS Amount ％ Amount ％
Current assets
Cash and cash equivalents (Notes 4 & 6) $ 268,306 1 $ 176,635 1
- -
Financial assets at fair value through profit or loss - current (Notes 4 & 7) 8,101 7,841
Financial assets at amortized cost - current (Notes 4, 9, 21 & 29) 523,358 1 503,652 1
- -
Notes receivable, net (Notes 4, 10 & 21) 28,372 3,231
- -
Trade receivables, net (Notes 4, 10, 21 & 24) 21,763 20,224
- -
Trade receivables from related parties, net (Notes 4, 10 & 28) 13,166 14,448
Finance lease receivables, net (Notes 4 & 11) 160 - 21,055 -
- -
Other receivables (Note 4) 4,919 4,603
- -
Other receivables from related parties (Note 28) 14,529 5,630
Current tax assets (Note 4) 1,912 - 884 -
Inventories (Notes 4, 5, 12, 21, 28 & 29) 6,725,688 19 6,712,339 19
Prepayments (Notes 13) 218,125 1 187,399 1
- -
Refundable deposits - current (Note 21) 75,534 80,311
- -
Other current assets (Note 13) 4,424 5,157
- -
Incremental costs of obtaining contracts (Notes 21 & 24) 98,085 82,458
Total current assets 8,006,442 22 7,825,867 22
Non-current assets
Financial assets at fair value through other comprehensive income - non-current (Notes 4
- -
& 8) 5,100 5,100
Financial assets at amortized cost - non-current (Notes 4, 9 & 29) 1,683,662 5 1,996,881 6
Investments accounted for using equity method (Notes 4, 14 & 29) 19,632,345 55 19,392,986 54
- -
Property, plant and equipment (Notes 4, 15 & 29) 107,671 109,811
- -
Right-of-use assets (Notes 4 and 16) 1,760 14,034
Investment properties, net (Notes 4, 17 & 29) 6,231,544 18 6,241,791 18
- -
Intangible assets (Note 4) 13,559 13,826
- -
Refundable deposits - non-current 24,522 37,268
Finance lease receivables - non-current, net (Notes 4 & 11) - - 492 -
Total non-current assets 27,700,163 78 27,812,189 78
TOTAL $ 35,706,605 100 $ 35,638,056 100
LIABILITIES AND EQUITY
Current liabilities
Short-term borrowings (Notes 18 & 29) $ 1,272,296 4 $ 1,467,183 4
Short-term bills payable (Notes 18 & 29) 2,178,458 6 1,912,351 5
Contract liabilities - current (Notes 4, 21, 24 & 28) 799,198 2 710,378 2
Notes payable 617 - 17,723 -
Trade payables 17,121 - 700 -
Trade payables to related parties (Note 28) 515,161 1 367,510 1
Other payables 524,746 2 1,047,940 3
Other payables to related parties (Note 28) 2,181,509 6 1,622,245 5
- -
Lease liabilities - current (Notes 4 ,16 & 28) 2,067 78,749
Current portion of bonds payable (Notes 19 & 29) 1,000,000 3 - -
Current portion of long-term borrowings (Notes 18, 21 & 29) 2,128,513 6 5,328,966 15
- -
Other current liabilities (Note 21) 27,648 38,278
Total current liabilities 10,647,334 30 12,592,023 35
Non-current liabilities
Bonds payable (Note 19 & 29) 4,900,000 14 5,900,000 16
Long-term borrowings (Notes 18 & 29) 9,098,063 25 5,980,887 17
Provisions - non-current (Notes 4 & 20) 242,577 1 249,645 1
Lease liabilities - non-current (Notes 4 & 16) 347 - 1,808 -
- -
Net defined benefit liabilities - non-current (Notes 4 & 22) 9,190 5,499
- -
Guarantee deposits received 19,025 21,954
Total non-current liabilities 14,269,202 40 12,159,793 34
Total liabilities 24,916,536 70 24,751,816 69
Equity (Note 23)
Share capital
Ordinary shares 8,800,946 25 8,800,946 25
Capital surplus 1,290,217 3 1,290,217 4
Retained earnings
Legal reserve 296,795 1 289,086 1
- -
Special reserve 3,839 1,545
Unappropriated earnings 401,960 1 508,285 1
Total retained earnings 702,594 2 798,916 2
- -
Total other equity ( 3,688 ) ( 3,839 )
Total equity 10,790,069 30 10,886,240 31
TOTAL $ 35,706,605 100 $ 35,638,056 100
----- End of picture text -----

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

• 6 -

Radium Life Tech Co., Ltd.

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022

(In Thousands of New Taiwan Dollars, Except (Loss) Earnings Per Share)

TOTAL OPERATION REVENUE (Notes 4, 24 & 28) TOTAL OPERATING COSTS (Notes 4, 12 & 25) GROSS PROFIT OPERATING EXPENSES(Note 25 & 28) Selling and marketing expenses General and administrative expenses Total operating expenses LOSS FROM OPERATIONS NON-OPERATING INCOME AND EXPENSES (Notes 25 & 28) Interest income Other income Other gains and losses Finance costs Share of profit or loss of subsidiaries, associates and joint ventures accounted for using equity method Total non-operating income and expenses (LOSS) PROFIT BEFORE INCOME TAX INCOME TAX BENEFIT (EXPENSE) (Notes 4 & 26) NET (LOSS) PROFIT FOR THE YEAR		2023		％ 100 93) 7 9 ) 44) 53) 46) 1 1 - 38 ) 74 38 8 ) - 8)		2022		％ 100 85) 15 10 ) 61) 71) 56) 1 2 1 ) 41 ) 103 64 8 - 8 (Continued)
		Amount $ 1,264,245 1,178,990) 85,255 110,253 ) 556,172) 666,425) 581,170) 15,189 20,641 5,941 484,664 ) 931,489 488,596 92,574 ) 49 92,525)				Amount $ 945,371 808,390) 136,981 97,243 ) 570,201) 667,444) 530,463) 5,154 16,578 7,041 ) 383,018 ) 974,825 606,498 76,035 1,726) 74,309
	( ( ( ( ( ( ( (		( ( ( ( ( ( ( (		( ( ( ( ( ( ( (		( ( ( ( ( ( (

• 7 -

Other comprehensive income/(loss) Items that will not be reclassified subsequently to profit or loss Remeasurement of defined benefit plans Remeasurement of defined benefit plans, associates and joint ventures accounted for using equity method Unrealized gain/(loss) on investments in equity instruments measured at fair value through other comprehensive income, associates and joint ventures accounted for using equity method Items that may be reclassified subsequently to profit or loss Exchange differences on translating the financial statements of foreign operations Other comprehensive income/(loss) for the year, net of income tax TOTAL COMPREHENSIVE INCOME/(LOSS) FOR THE YEAR EARNINGS (LOSS) PER SHARE (Note 27) Basic Diluted		2023		％ - - - - - 8 )		2022
		Amount $ 4,156 ) 359 197 46) 3,646) $ 96,171 ) $ 0.11 )				Amount $ 1,255 1,530 2,331 ) 37 491 $ 74,800 $ 0.08 $ 0.08		％
	( ( ( ( (		(		(			- - - - - 8

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

• 8 -

Radium Life Tech Co., Ltd.

PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022

(In Thousands of New Taiwan Dollars)

==> picture [1026 x 372] intentionally omitted <==

----- Start of picture text -----

Other Equity
Unrealized Gain/(Loss)
Exchange Differences on Financial Assets at
Share Capital Retained Earnings on Translating the Fair Value through
Unappropriated Financial Statements of Other Comprehensive
Ordinary Shares Capital Surplus Legal Reserve Special Reserves Earnings Foreign Operations Income Treasury Shares Total Equity
BALANCE AT JANUARY 1, 2022 $ 9,000,946 $ 1,307,843 $ 282,922 $ 1,389 $ 613,530 ( $ 1,347 ) ( $ 198 ) ( $ 38,752 ) $ 11,166,333
Allocation and appropriation of 2021 earnings
- - - - - - -
Legal reserve appropriated 6,164 ( 6,164 )
Special reserve appropriated - - - 156 ( 156 ) - - - -
- - - - - - -
Cash dividends distributed by the company ( 176,019 ) ( 176,019 )
Net income in 2022 - - - - 74,309 - - - 74,309
Other comprehensive income in 2022, net of income
tax - - - - 2,785 37 ( 2,331 ) - 491
Total comprehensive income in 2022 - - - - 77,094 37 ( 2,331 ) - 74,800
- - - - - - -
Buy-back of ordinary shares ( 178,874 ) ( 178,874 )
- - - - - -
Retirement of treasury share ( 200,000 ) ( 17,626 ) 217,626
-
BALANCE AT DECEMBER 31, 2022 8,800,946 1,290,217 289,086 1,545 508,285 ( 1,310 ) ( 2,529 ) 10,886,240
Allocation and appropriation of 2022 earnings
- - - - - - -
Legal reserve appropriated 7,709 ( 7,709 )
- - - - - - -
Special reserve appropriated 2,294 ( 2,294 )
Net loss in 2023 - - - - ( 92,525 ) - - - ( 92,525 )
Other comprehensive income/(loss) in 2023, net of
income tax - - - - ( 3,797 ) ( 46 ) 197 - ( 3,646 )
Total comprehensive income/(loss) in 2023 - - - - ( 96,322 ) ( 46 ) 197 - ( 96,171 )
BALANCE AT DECEMBER 31, 2023 $ 8,800,946 $ 1,290,217 $ 296,795 $ 3,839 $ 401,960 ( $ 1,356 ) ( $ 2,332 ) $ - $ 10,790,069
----- End of picture text -----

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

• 9 -

Radium Life Tech Co., Ltd.

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022

(In Thousands of New Taiwan Dollars)

CASH FLOWS FROM OPERATING ACTIVITES (Loss) profit before income tax Adjustments for: Depreciation expenses Amortization expenses Net (gains) losses on financial assets or liabilities at fair value through profit or loss Interest expenses Interest income Share of profit of subsidiaries, associates, and joint ventures Reversal of impairment loss on non- financial assets Gain on disposal or retirement of property, plant and equipment Realized gain on transactions with subsidiaries, associates and joint ventures Other non-cash items Changes in operating assets and liabilities Notes receivable Trade receivables Trade receivables from related parties Other receivables Other receivables from related parties Inventories Prepayments Other current assets Incremental costs of obtaining contracts Contract liabilities Notes payable Trade payables Trade payables to related parties Other payables Other payables to related parties Other current liabilities Other operating liabilities Cash used in operations		2023 $ 92,574 ) 205,364 8,602 260 ) 484,664 15,189 ) 931,489 ) 56,770 ) - 2,792 ) 441 ) 25,141 ) 1,539 ) 1,282 230 ) 8,899 ) 131,159 ) 30,726 ) 733 15,627 ) 88,820 17,106 ) 16,421 147,651 523,166 ) 409 ) 10,718 ) 7,068) 917,766 )		2022
	( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( (		( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( (	$ 76,035 216,878 7,738 853 383,018 5,154 ) 974,825 ) 31,319 ) 176 ) 2,736 ) 4,635 3,184 ) 8,448 9,047 ) 16 ) 5,184 ) 16,749 43,795 ) 64 ) 50,860 ) 482,209 14,406 23,381 ) 48,784 326,286 ) 575 6,818 ) 5,997) 228,514 )

(Continued)

• 10 -

Interest received Interest paid Income tax paid Net cash used in operating activities CASH FLOWS FROM INVESTING ACTIVITIES Purchase of financial assets at amortized cost Proceeds from sale of financial assets at amortized cost Acquisition of investments accounted for using equity method Payments for property, plant and equipment Proceeds from disposal of property, plant and equipment Decrease in refundable deposits Payments for intangible assets Decrease in finance lease receivables Dividends received from investments accounted for using equity method Net cash generated from (used in) investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from short-term borrowings Repayments of short-term borrowings Proceeds from short-term bills payable Repayments of bond payables Proceeds from issuance of bonds Repayments of long-term borrowings Proceeds from guarantee deposits received Increase in other payables to related parties Repayment of the principal portion of lease liabilities Dividends paid to owners of the Company Payments for transaction costs attributable to treasury shares Net cash generated from financing activities NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR		2023 15,103 487,773 ) 979) 1,391,415) - 293,513 258,918 ) 4,101 ) - 17,523 8,335 ) 19,430 954,350 1,013,462 - 194,887 ) 266,107 - - 80,523 ) 2,841 ) 560,000 78,232 ) - - 469,624 91,671 176,635 $ 268,306		2022
	( ( ( ( ( ( ( ( ( (		( ( ( ( ( ( ( ( ( ( ( ( ( (	12,987 379,024 ) 2,642) 597,193) 158,852 ) - 1,393,918 ) 6,347 ) 176 128,683 8,043 ) 26,135 821,785 590,381) 51,619 - 547,747 1,500,000 ) 1,400,000 336,478 ) 2,589 1,240,000 116,270 ) 176,019 ) 178,874) 934,314 253,260 ) 429,895 $ 176,635

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

• 11 -

Radium Life Tech Co., Ltd.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

1. Organization and Operations

Radium Life Tech Co., Ltd. (the “Company”) was incorporated in the Republic of China on March 26, 1982, its main business includes:

• (I) Commissioning construction companies to build public housing projects and commercial buildings for rental and sale.

• (II) Commissioned by the industrial competent authorities of the government to engage in development, lease, sale, and management of industrial zones.

The Company’s shares have been listed on the Taiwan Stock Exchange (TWSE) since December 2000.

The parent company only financial statements are presented in New Taiwan Dollar, the Company’s functional currency.

2. Date and Procedures for Approval of the Financial Report

The parent company only financial statements were approved by the board of directors and authorized for release on March 12, 2024.

1. Application of Newly Issued and Amended Standards and Interpretations

2. (I) Initial application of the amendments to the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations

   • (SIC) (collectively, the “IFRS Accounting Standards”) endorsed and issued into effect by the Financial Supervisory Commission (FSC).

The application of the amendments to the IFRS Accounting Standards endorsed and issued into effect by the FSC will not have a material impact on the Company’s accounting policies.

• (II) The IFRS Accounting Standards endorsed by the Financial Supervisory Commission (FSC) for application starting from 2024

Effective Date Announced by New/Revised/Amended Standards and Interpretations IASB (Note 1) Amendment to IFRS 16 “Lease Liability in a Sale and January 1, 2024 (Note 2) Leaseback” Amendments to IAS 1 “Classification of Liabilities as Current or January 1, 2024 Non-current” Amendment to IAS 1 “Non-current Liabilities with Covenants” January 1, 2024 Amendments to IAS 7 and IFRS 7 "Supplier Finance January 1, 2024 (Note 3) Arrangements"

Note	1:	Unless stated otherwise, the above IFRS Accounting Standards are effective for annual
		reporting periods beginning on or after their respective effective dates.
Note	2:	A seller-lessee should apply the Amendments to IFRS 16 retrospectively to sale and
		leaseback transactions entered into after the date of initial application of IFRS 16.
Note	3:	The amendments provide some transition relief regarding disclosure requirements.

• 12 -

As of the date the parent company only financial statements were authorized for issue, the Company has assessed that the application of other standards and interpretations will not have a material impact on the Company’s financial position and financial performance.

(III) The IFRS Accounting Standards in issue but not yet endorsed and issued into effect by the FSC

==> picture [412 x 33] intentionally omitted <==

----- Start of picture text -----

Effective Date Issued by IASB
New/Amended/Revised Standards and Interpretations (Note 1)
Amendments to IFRS 10 and IAS 28 “Sale or Contribution of To be determined by IASB
----- End of picture text -----

New/Amended/Revised Standards and Interpretations Amendments to IFRS 10 and IAS 28 “Sale or Contribution of	Effective Date Issued by IASB (Note 1) To be determined by IASB
Assets between an Investor and its Associate or Joint
Venture”
IFRS 17 “Insurance Contracts”	January 1, 2023
Amendments to IFRS 17	January 1, 2023
Amendment to IFRS 17 “Initial Application of IFRS 9 and	January 1, 2023
IFRS 17―Comparative Information”
Amendments to IAS 21 "Lack of Exchangeability"	January 1, 2025 (Note 2)

Note 1: Unless stated otherwise, the above IFRS Accounting Standards are effective for annual reporting periods beginning on or after their respective effective dates. Note 2: An entity shall apply those amendments for annual reporting periods beginning on or after January 1, 2025. Upon initial application of the amendments, the entity recognizes any effect as an adjustment to the opening balance of retained earnings. When the entity uses a presentation currency other than its functional currency, it shall, at the date of initial application, recognize any effect as an adjustment to the cumulative amount of translation differences in equity.

As of the date the parent company only financial statements were authorized for issue, the Company is continuously assessing the possible impact that the application of other standards and interpretations will have on the Company’s financial position and financial performance and will disclose the relevant impact when the assessment is completed.

4. Summary of Significant Accounting Policies

(I) Statement of compliance

The parent company only financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

(II) Basis of preparation

The parent company only financial statements have been prepared on the historical cost basis except for the financial instruments measured at fair value, and net defined benefit liabilities, which are measured at the present value of the defined benefit obligation less the fair value of plan assets.

• 13 -

The fair value measurements, which are grouped into Levels 1 to 3 based on the degree to which the fair value measurement inputs are observable and based on the significance of the inputs to the fair value measurement in its entirety, are described as follows:

1. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities;

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

3. Level 3 inputs are unobservable inputs for an asset or liability.

When the Company prepared the parent company only financial statements, it adopted equity method to account for its investments in subsidiaries. In order to enable the amounts of the profit or loss for the year, other comprehensive income, and equity for the year in the parent company only financial statements to be the same as the ones attributable to the owners of the Company in its consolidated financial statements, regarding the differences arising from accounting treatments between the parent company only basis and the consolidation basis, adjustments were made to the investments accounted for using the equity method, the share of profit or loss on subsidiaries, associates, and joint ventures using the equity method, the share of other comprehensive income of subsidiaries, associates, and joint ventures using the equity method, as well as relevant equity items, as appropriate, in the parent company only financial statements.

(III)

Classification of current and non-current assets and liabilities

• Current assets include:

• Assets held primarily for the purpose of trading;

• Assets expected to be realized within 12 months after the reporting period; and

• Cash and cash equivalents unless the asset is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period.

• Current liabilities include:

• Liabilities held primarily for the purpose of trading;

• Liabilities due to be settled within 12 months after the reporting period, even if an agreement to refinance, or to reschedule payments, on a long-term basis is completed after the reporting period and before the consolidated financial statements are authorized for issue; and

• Liabilities for which the Group does not have an unconditional right to defer settlement for at least 12 months after the reporting period. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

• Assets and liabilities that are not classified as current are classified as non-current.

As the Company is engaged in construction projects and commissioning of construction companies to build buildings or plants for sale, its operating cycle is longer than one year. Therefore, the assets and liabilities related to construction, building, and sales projects are classified with the operating cycle as the standard for current and non-current.

• 14 -

(IV) Foreign currencies

When the Company’s financial statements are prepared, transactions in currencies other than the Company’s functional currency (i.e. foreign currencies) are recognized at the rates of exchange prevailing on the transaction dates.

At the end of each reporting period, monetary items denominated in foreign currencies are translated at the rates prevailing on that date. Exchange differences on monetary items arising from settlement or translation are recognized in profit or loss in the period in which they arise.

Non-monetary items measured at fair value that are denominated in foreign currencies are translated at the rates prevailing on the date when the fair value was determined. The resulting exchange difference is recognized in profit or loss. For items whose changes in fair value are recognized in other comprehensive income, the resulting exchange difference is recognized in other comprehensive income.

Non-monetary items measured at historical cost that are denominated in foreign currencies are translated at the rates of exchange prevailing on the transaction dates and are not retranslated.

When the parent company only financial statements are prepared, the assets and liabilities of the Company’s foreign operations (including subsidiaries, associates, joint ventures, or branches that operate in countries or adopt the functional currencies different from the Company) are translated into New Taiwan dollar at the rates of exchange prevailing at the end of each reporting period. Income and expense items are translated at the average exchange rates for the period. The resulting currency exchange differences are recognized in other comprehensive income.

Where the Company disposes of all the equity of a foreign operation, or disposes of part of the equity of the foreign operation’s subsidiary and loses control over it, or the retained interests after disposal of the foreign operation’s joint arrangements or associates are a financial asset and treated based on the accounting policies applicable to financial instruments, all accumulated exchange differences related to the foreign operation will be reclassified to profit or loss.

Where the partial disposal of a subsidiary of a foreign operation does not result in the loss of control, the accumulated exchange differences are included in the equity transaction in proportion for calculation, and are not recognized in profit or loss. In the case of any other partial disposal of a foreign operation, the accumulated exchange differences will be reclassified to profit or loss in proportion to the disposal.

(V) Inventories

Inventories include property under development, property to be developed, and buildings and land held for sale. The value of inventories is determined based on the cost or net realizable value, whichever is lower. The comparison of the cost and net realizable value is based on individual items except for inventories of the same category. The net realizable value is the estimated selling price, less the estimated cost of completion and the estimated costs necessary to make the sale. The actual construction cost of the property inventories is reclassified to the annual operating costs in line with the recognition principle of property sales revenue.

For a contract where a land owner provides land for construction of buildings by a property developer in exchange for a certain percentage of the buildings, no exchange gains or loss is

• 15 -

recognized if the buildings acquired are classified as properties held for sale. Revenue is recognized when the properties held for sale are sold to third parties.

• (VI) Investments in subsidiaries

The Company adopts the equity method to account for its investments in subsidiaries.

A subsidiary is an entity (including special purpose entity) that is controlled by the Company. Under the equity method, investments are initially recognized at cost and adjusted thereafter to recognize the Company’s share of the profit or loss and other comprehensive income of its subsidiaries. In addition, changes in the Company's other equity interest of its subsidiaries are recognized based on its ownership percentage.

Changes in the Company’s ownership interests in subsidiaries that do not result in the Group losing control over the subsidiaries are accounted for as equity transactions. Any difference between the carrying amount of an investment and the fair value of the consideration paid or received is recognized directly in equity.

When the Company’s share of losses on a subsidiary exceeds its equity in said subsidiary (which includes any carrying amount of the investment accounted for by the equity method and long-term equity that, in substance, forms part of the Company’s net investment in said subsidiary), the Company continues recognizing its share of further losses.

The amount of the acquisition cost in excess of the Company’s share of the net fair value of the identifiable assets and liabilities of a subsidiary that constitutes the business on the acquisition date is classified as goodwill, which is included in the book value of the investment and cannot be amortized. The amount of the Company’s share of the net fair value of the identifiable assets and liabilities of a subsidiary that constitutes the business on the acquisition date in excess of the amount of the acquisition cost is classified as current income.

When the Company assesses the impairment, it considers the cash-generating unit as a whole in the financial statements and compares its recoverable amount with the carrying amount. If the recoverable amount of an asset increases subsequently, the reversal of the impairment loss shall be recognized in gains, but the carrying amount of the asset after the reversal of the impairment loss shall not exceed the carrying amount of the asset less amortization without impairment loss recognized. The impairment loss attributable to goodwill shall not be reversed in subsequent periods.

When the Company loses control over a subsidiary, it measures its remaining investment in said subsidiary based on the fair value on the day when the control is lost. The fair value of the remaining investment and the difference between any disposal price and the carrying amount of the investment on the day when the control is lost are recognized in profit or loss for the period. In addition, all amounts recognized in other comprehensive income related to said subsidiary are accounted for on the same basis as the one adopted for the Company's direct disposal of the relevant assets or liabilities.

The unrealized profit or loss on downstream transactions between the Company and its subsidiaries are eliminated in the parent company only financial statements. Profit or loss on downstream and lateral transactions between the Company and its subsidiaries is recognized in the parent company only financial statements only to the extent that it does not affect the Company's interests in the subsidiaries.

• 16 -

(VII) Property, plant and equipment

Property, plant and equipment are initially recognized at cost and subsequently measured at cost less accumulated depreciation and accumulated impairment loss.

Property, plant and equipment under construction are recognized at cost less accumulated impairment loss. The cost shall include professional service expenses and the borrowing costs eligible for capitalization. Such assets are classified into appropriate property, plant and equipment categories upon completion and reaching the status of intended use, and the depreciation will begin.

Except for self-owned land, which is not depreciated, each significant component of the remaining property, plant and equipment is depreciated separately on a straight-line basis within their useful lives. The Company conducts at least one annual review at the end of each year to assess the estimated useful life, residual value, and depreciation methods, and applies the effect of changes in applicable accounting estimates prospectively.

When derecognizing an item of property, plant and equipment, the difference between the net disposal proceeds and the carrying amount of the asset shall be recognized in loss or profit.

(VIII) Investment properties

Investment properties refers to properties held for the purpose of earning rents or capital appreciation or both (including properties and right-of-use assets thereof that meet the definition of investment properties and are in the process of construction). Investment properties also include land held for a currently undetermined future use.

Self-owned investment properties are initially measured at cost (including transaction cost), and subsequently measured at cost less accumulated depreciation and accumulated impairment losses. The investment properties acquired through lease are initially measured at cost (including the originally measured amount of the lease liabilities, the lease payments paid before the lease commencement date, the original direct cost, and the estimated cost of restoring the underlying asset, less the lease incentives received), and subsequently measured at cost less accumulated depreciation and accumulated impairment losses, and the remeasurement of the lease liability is adjusted.

All investment properties are depreciated on a straight-line basis.

Investment properties under construction are recognized at the cost less the accumulated impairment losses. The cost shall include professional service expenses and the borrowing costs

eligible for capitalization. Such assets begin to be depreciated when they reach the status of intended use.

Investment properties are reclassified to inventories based on the carrying amount at the time when they are planned to be sold and cease being leased out.

The properties recognized in inventories are reclassified to investment properties based on the carrying amount at the time of establishment of an operating lease for rental.

When investment properties are derecognized, the difference between the net disposal price and the carrying amount of the asset is recognized in profit or loss.

• 17 -

(IX) Intangible assets

1. Acquired separately

Intangible assets with finite useful lives that are acquired separately are initially measured at cost and subsequently measured at cost less accumulated amortization and accumulated impairment loss. Intangible assets are amortized using straight-line method over the useful lives. The Company conducts at least one annual review at the end of each year to assess the estimated useful life, residual value, and amortization methods, while applying the effects of changes in accounting estimates prospectively. Intangible assets with indefinite useful lives are recognized at cost less accumulated impairment loss.

The cost of computer software is mainly amortized on a straight-line basis over a period of 1 to 10 years.

1. Derecognition

On derecognition of an intangible asset, the difference between the net disposal proceeds and the carrying amount of the asset is recognized in profit or loss.

• (X) Assets related to contract costs

The sales commission for property sales and the selling service fee paid to agents under exclusive sale agreements of the property held for sale only occur when any customer contract is closed, and the amount is recognized in the incremental cost of obtaining the contract within the recoverable amount and reclassified when the property is completed and transferred to the customer. However, for the incremental cost of obtaining a contract that is expected to be amortized within one year, the Company chose not to capitalize it.

(XI) Impairment of assets related to property, plant and equipment, right-of-use assets, investment properties, intangible assets (excluding goodwill), and assets related to contract costs

The Company assesses if there are any signs of possible impairment in property, plant, and equipment as well as right-of-use, investment properties, and intangible assets (excluding goodwill) at the end of each reporting period. If there is any sign of impairment, an estimate is made of its recoverable amount. If it is not possible to determine the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit (CGU) to which the asset belongs. Corporate assets are allocated to the smallest CGUs on a reasonable and consistent basis.

Intangible assets with indefinite useful lives and not yet available for use are tested for impairment at least annually and whenever there is an indication that the assets may be impaired.

The recoverable amount is the fair value less cost of sales or its value in use, whichever is higher. If the recoverable amount of an individual asset or a CGU is lower than its carrying amount, the carrying amount is reduced to the recoverable amount, and the impairment loss is recognized in profit or loss.

The inventory, property, plant and equipment, and intangible assets related to customer contracts are first recognized as impairment in accordance with the inventory impairment standards and the standards above. Then, the carrying amount of the assets related to contract cost in excess of the expected amount of consideration received for the provision of the relevant goods or services less the direct relevant costs is recognized as an impairment loss. Subsequently, the carrying amount of the

• 18 -

assets related to contract cost is included in the CGU to which they belong to perform impairment assessment of the CGU.

When the impairment loss is subsequently reversed, the carrying amount of the asset, the CGU, or the asset related to contract cost is increased to the revised recoverable amount, provided that the increased carrying amount shall not exceed the carrying amount (less amortization or depreciation) of the asset, CGU, or the asset related to contract cost which was not recognized in impairment loss in prior years; the reversal of the impairment loss is recognized in profit or loss.

(XII) Financial instruments

Financial assets and financial liabilities shall be recognized in the parent company only balance sheet when the Company becomes a party to the contractual provisions of the instruments.

Financial assets and financial liabilities not at fair value through profit or loss are measured at fair value plus transaction costs directly attributable to the acquisition or issuance of financial assets or financial liabilities. The transaction costs directly attributable to the acquisition or issuance of financial assets or financial liabilities at fair value through profit or loss is immediately recognized in profit or loss.

1. Financial assets

Regular trading of financial assets shall be recognized and derecognized in accordance with trade date accounting.

• (1) Measurement types

Financial assets held by the Company are those measured at fair value through profit or loss (FVTPL) and at amortized cost, as well as investments in equity instruments measured at fair value through other comprehensive income (FVTOCI). A. Financial assets at FVTPL

Financial assets at FVTPL are those mandatorily measured at FVTPL, including investments in equity instrument that the Company has not designated to measure at FVTOCI, and debt instruments that are not eligible to be classified as measured at amortized cost or at FVTOCI.

Financial assets measured at FVTPL are measured at fair value, and the gains or losses arising from remeasurement are recognized in profit or loss. Please refer to Note 33 for the method of determining the fair value.

• B. Financial assets at amortized cost

When the Company's investments in financial assets meet the following two conditions simultaneously, they are classified as financial assets measured at amortized cost:

• a. Held under a certain business model, of which the objective is to collect contractual cash flows by holding the financial assets; and

• b. The cash flows on specific dates specified in the contractual terms are solely payments of the principal and interest on the principal amount outstanding. After initial recognition, such assets (including cash and cash equivalents, notes

• receivable, trade receivables, other receivables measured at amortized cost, and

• 19 -

refundable deposits) are measured at the amortized cost of the total carrying amount determined by the effective interest method less any impairment loss, and any foreign currency exchange gains or losses are recognized in profit or loss. Except for the following two cases, interest revenue is calculated by multiplying the effective interest rate by the total carrying amount of financial assets:

• a. For purchased or originated credit-impaired financial asset, interest revenue is calculated by multiplying the credit-adjusted effective interest rate by the amortized cost of the financial asset.

• b. For financial asset that is not purchased or originated credit-impaired but subsequently becomes credit impaired, interest revenue is calculated by multiplying the effective interest rate from the next reporting period after the credit impairment by the amortized cost of the financial asset.

Cash equivalents include time deposits and short-term bills that are highly liquid and readily convertible into a fixed amount of cash at any time within 3 months from the date of acquisition while featuring little risk of value changes, which are used to meet short-term cash commitments

• C. Investments in equity instruments at FVTOCI

On initial recognition, the Company may make an irrevocable election to designate as at FVTOCI the investments in equity instruments that are not held for trading and the ones that are not recognized by an acquirer in a business combination or with the contingent consideration.

Investments in an equity instrument measured at FVTOCI are measured at fair value, and any subsequent fair value changes are recognized in other comprehensive income and accumulated in other equity. Upon disposal of investments, cumulative gain or loss is directly transferred to retained earnings and are not reclassified to profit or loss.

Dividends of investments in equity instruments measured at FVTOCI are recognized in profit or loss when the Company's right to receive dividends is established unless such dividends clearly represent the recovery of a part of the investment cost.

(2) Impairment of financial assets and contract assets

The Company assesses the impairment loss of financial assets measured at amortized cost (including trade receivables), and contract assets based on the expected credit loss at the end of each reporting period.

Trade receivables and contract assets are recognized in loss allowance based on the lifetime expected credit losses (ECLs). Other financial assets are first assessed based on whether the credit risk has increased significantly since the initial recognition. If there is no significant increase in the risk, a loss allowance is recognized at an amount equal to 12-month ECLs.

• 20 -

If the risks have increased significantly, a loss allowance is recognized at an amount equal to lifetime ECLs. The ECLs refer to the weighted average credit loss with the risk of default as the weight. The 12-month ECLs represent the ECLs from possible defaults of a financial instrument within 12 months after the reporting date. The lifetime ECLs represent the ECLs from all possible defaults in a financial instrument over the expected life of a financial instrument.

For the purpose of internal credit risk management, the Company, without considering the collateral held, determines that the following situations represent defaults in the financial assets:

• A. Internal or external information indicates that it is impossible for the debtor to settle the debt.

• B. It is overdue for more than 90 days, unless there is reasonable and corroborative

• information showing that a default date postponed is more appropriate.

The Company recognizes an impairment loss for all financial assets with a corresponding downward adjustment to their carrying amount through a loss allowance account. However, the loss allowance for investment in debt instruments measured at FVTOCI is recognized in other comprehensive income without a downward adjustment to the carrying amount.

• (3) Derecognition of financial assets

The Company derecognizes a financial asset when the contractual rights to the cash inflow from the financial asset expire or when it transfers the financial assets and substantially all the risks and rewards of ownership of the asset to another party.

On derecognition of a financial asset at amortized cost in its entirety, the difference between the asset’s carrying amount and the consideration received is recognized in profit or loss. When derecognizing an investment in equity instrument at FVTOC in its entirety, the cumulative profit or loss is transferred directly to retained earnings and is not reclassified to profit or loss.

1. Equity instruments

Debt and equity instruments issued by the Company are classified as either financial liabilities or equity in accordance with the substance of the contractual arrangements and the definitions of financial liabilities and equity instruments.

Equity instruments issued by the Company are recognized at the proceeds received, net of the cost of direct issue.

The repurchase of the Company’s own equity instruments is recognized in and deducted directly from equity and is calculated based on the weighted-average number of shares. The purchase, sale, issuance, or cancellation of the Company’s own equity instruments is not recognized in profit or loss.

• 21 -

• Financial liabilities

• (1) Subsequent measurement

All financial liabilities are measured at amortized cost in the effective interest

method.

• (2) Derecognition of financial liabilities

The difference between the carrying amount of the financial liability derecognized

and the consideration paid, including any non-cash assets transferred or liabilities

assumed, is recognized in profit or loss.

(XIII) Provisions

The amount recognized in provision is based on the risk and uncertainty of the obligation, and is

the best estimate of the expenditure required to settle the obligation at the end of each reporting period. The provisions are measured at the discounted value of the cash flow estimated to settle the obligation.

Warranty

The warranty obligation to ensure that products conform to the agreed specifications is based on

the management's best estimate of the expenditure required to settle the Company’s obligation, and is recognized when relevant products are recognized in revenue.

• (XIV) Revenue recognition

After the Company identifies its performance obligations in contracts with customers, it allocates the transaction price to each performance obligation in the contracts and recognizes revenue when performance obligations are satisfied.

Construction revenue

For the property sales within the normal business scope, the fixed transaction price is received in installments and recognized as a contract liability. After considering the major financial components, revenue is recognized when each property is completed and delivered to the buyer.

• (XV) Leases

The Company assesses whether a contract belongs to (or contains) a lease on the date of establishment of the contract.

1. The Company as lessor

Where almost all the risks and rewards attached to the ownership of an asset are transferred to the lessee in lease terms, such leases are classified as finance leases. All other leases are classified as operating leases.

When the Company subleases the right-of-use assets, the right-of-use assets (not the underlying asset) are used to determine the classification of the sublease. However, if the main lease is a short-term lease for which the recognition exemption applies to the Company, the sublease is classified as an operating lease.

Under finance leases, lease payments include fixed payments, substantive fixed payments, and fines for lease termination that has been reflected in the lease term, less lease incentives that shall be paid. The net lease investment is measured by the sum of the present value of the lease payment receivable and the unguaranteed residual value plus the initial direct cost and

• 22 -

presented as financial lease receivable. Finance lease income is allocated to each accounting period to reflect the fixed rate of return on the Company's net investment outstanding in respect of leases.

Under operating leases, lease payments less lease incentives are recognized in income on a straight-line basis over the relevant lease terms. The initial direct cost incurred in obtaining an operating lease is added to the carrying amount of the underlying asset and recognized as expenses on a straight-line basis over the lease term. The lease negotiation with each lessee is handled as a new lease from the effective date of the lease modification.

The variable rent in a lease arrangement that is not dependent on the index or rate is recognized in income in the period in which it is incurred.

1. The Company as lessee

The Company recognizes right-of-use assets and lease liabilities for all leases at the commencement date of each lease, except for low value asset leases and short-term leases accounted for by applying a recognition exemption where lease payments are recognized as expenses on a straight-line basis over the lease terms.

A right-of-use asset is initially measured at cost (including the initial measured amount of lease liabilities, the amount of lease payments made to the lessor less lease incentives received prior to the inception of a lease, initial direct costs, and the estimated costs of restoring underlying assets), and subsequently measured at cost less accumulated depreciation and accumulated impairment and adjusted for any remeasurement of the lease liabilities. Right-ofuse assets, except those that meet the definition of investment properties, are presented on a separate line in the parent company only balance sheets. For the recognition and measurement of right-of-use assets that meet the definition of investment properties, please refer to (VIII) for the accounting policies for investment properties.

Right-of-use assets are depreciated on a straight-line basis from the lease commencement date to the expiration of the useful life or the expiration of the lease term, whichever is earlier. The lease liabilities are initially measured at the present value of the lease payment (including fixed payments, in-substance fixed payments, and fines for lease termination that has been reflected in the lease term, less lease incentives received). If the interest rate implicit in a lease can be easily determined, the lease payment is discounted at such an interest rate. If the interest rate cannot be easily determined, the lessee's incremental borrowing rate applies.

Subsequently, lease liabilities are measured at the amortized cost using the effective interest rate method, and interest expense is amortized over the lease term. If changes in the lease term, the expected payment under the residual value guarantee, the evaluation of the underlying asset purchase options, or the index or rate used to determine the lease payment over the lease term lead to changes in future lease payments, the Company remeasure the lease liabilities with a corresponding adjustment to the right-of-use assets. However, if the carrying amount of the right-of-use assets has been reduced to zero, the remaining remeasurement amount is recognized in profit or loss. For lease modifications that are not treated as a separate lease, remeasurement of the lease liabilities due to the reduced scope of the lease is to reduce

• 23 -

the right-of-use assets, and to recognize the profit or loss of the partial or full termination of the lease; the remeasurement of the lease liabilities due to other modifications is to adjust the rightof-use assets. Lease liabilities are presented on a separate line in the parent company only balance sheets.

(XVI) Borrowing costs

Borrowing costs directly attributable to an acquisition, construction, or production of qualifying assets are added to the cost of said assets, until such time as the assets are substantially ready for their intended use or sale.

For specific borrowings, if the investment income earned by making a temporary investment before the capital expenditure that meets the requirements is incurred, it is deducted from the borrowing costs that meet the capitalization conditions.

Other than that which is stated above, all other borrowing costs are recognized in profit or loss in the period in which they are incurred.

(XVII) Employee benefits

1. Short-term employee benefits

Relevant liabilities for short-term employee benefits are measured by the non-discounted amount expected to be paid in exchange for employee services.

1. Retirement benefits

Payments to defined contribution retirement benefit plans are recognized as expenses when employees have rendered services entitling them to the contributions.

The defined benefit cost under the defined benefit retirement benefit plan (including service cost, net interest, and remeasurement) is calculated based on the projected unit credit method. The service cost (including the service costs for the current period and the past service cost) and the net interest on the net defined benefit liabilities (assets) are recognized in employee benefit expenses as they occur. The remeasurement (including actuarial gains and losses, effect of changes in assets limits, and the return on plan assets, net of interest) is recognized in other comprehensive income and listed in retained earnings when it occurs, and will not be reclassified to profit or loss subsequently.

The net defined benefit liabilities (assets) are the deficit (surplus) of the defined benefit retirement benefit plan. The net defined benefit assets may not exceed the present value of any refunds from the plan or reductions in future contributions to the plan.

(XVIII) Income tax

The income tax expense represents the sum of the tax currently payable and deferred tax.

1. Current tax

The Company determines the current revenue (loss) in accordance with the laws and regulations of the jurisdiction where the income tax returns are filed and, with this as a basis, calculates the income tax payable (receivable).

According to the Income Tax Law in the ROC, an additional tax on unappropriated earnings is provided for in the year the shareholders approve to retain earnings.

• 24 -

Adjustments of prior years’ tax liabilities are added to or deducted from the current year’s tax provision.

1. Deferred tax

Deferred income tax is calculated based on the temporary differences between the carrying amount of assets and liabilities and the corresponding tax bases used in the computation of taxable income.

Deferred income tax liabilities are generally recognized for all taxable temporary differences, and deferred tax assets are recognized when there are likely to be taxable income to deduct temporary differences, loss carryforwards, or income tax credit arising from investment.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable income will be available to allow all or part of the asset to be recovered. A previously unrecognized deferred tax asset is also reviewed at the end of each reporting period, and its carrying amount will be increased as it has become probable that future taxable income will allow all or part of the asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates in the period in which the liabilities are expected to be settled or assets realized, based on tax rates and tax laws that have been enacted or substantively enacted at the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

3. Current and deferred tax

Current and deferred taxes are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive income or directly in equity; in which case, the current and deferred taxes are recognized in other comprehensive income or directly in

equity, respectively.

1. Critical Accounting Judgements and Key Sources of Estimation Uncertainty

In the application of the Company’s accounting policies, the management is required to make judgments, estimations, and assumptions about the relevant information that is not readily accessible from other sources based on historical experience and other relevant factors. Actual results may differ from these estimates.

The management will constantly review the estimates and basic assumptions. If a revision of an estimate only affects the current period, it shall be recognized in the period in which the revision occurs. If a revision of an accounting estimate affects the current period and future periods, it shall be recognized in the period in which the revision occurs and future periods.

Key Sources of Estimation Uncertainty

Inventories impairment

The net realizable value of inventories is the estimated selling price in the ordinary course of

business, less the estimated cost of completion and the estimated costs necessary to make the sale. These

• 25 -

estimates are based on current market conditions and historical sales experience in similar products. Changes in market conditions may materially affect the results of these estimates. In addition, due to the uncertain subsequent development of inflation and market interest rate fluctuations, the estimated selling price for products are more volatile, resulting in a greater uncertainty in net realizable value estimates.

6. Cash and cash equivalents

Cash and cash equivalents
Cash Checking accounts and demand deposits Foreign currency deposits Financial assets at FVTPL Current Mandatorily at FVTPL Non-derivative financial assets Fund beneficiary certificates	December 31, 2023 $ 928 267,335 43 $ 268,306 December 31, 2023 $ 8,101	December 31, 2022
		$ 1,042 165,992 9,601 $ 176,635 December 31, 2022
			$ 7,841

7. Financial assets at FVTPL

Please refer to Note 25(3) for the gains or losses on financial assets at FVTPL.

1. Financial assets at FVTOCI

Investments in equity instruments at FVTOCI

Investments in equity instruments at FVTOCI
Non-current Domestic unlisted shares	December 31, 2023 $ 5,100	December 31, 2022
			$ 5,100

The Company invests in the above-mentioned unlisted stocks for medium- to long-term strategic purposes, and expects to make profits through long-term investments. The Company’s management believes that recognizing the short-term fluctuations in the fair value of such investments in profit or loss is not consistent with the aforementioned long-term investment plan. Therefore, the management elected to designate these investments in equity instruments as at FVTOCI.

9. Financial assets at amortized cost

Current Domestic investments Other financial assets Non-current Domestic investments Other financial assets	December 31, 2023 $ 523,358 $ 1,683,662	December 31, 2022	December 31, 2022
			$ 503,652 $ 1,996,881

(I) Other financial assets are restricted assets, such as reserve accounts for bank deposits and trust account.

• 26 -

(II) Please refer to Note 29 for the amount of investments in financial assets at amortized cost pledged by the Company.

10. Notes receivable and trade receivables

Notes receivable and trade receivables
Notes receivable At amortized cost Gross carrying amount Less: Loss allowance Trade receivables At amortized cost Gross carrying amount Less: Loss allowance Trade receivables from related parties	December 31, 2023 $ 28,372 - $ 28,372 $ 21,763 - $ 21,763 $ 13,166	December 31, 2022
			$ 3,231 - $ 3,231 $ 20,224 - $ 20,224 $ 14,448

When determining the recoverability of accounts receivable, the Company considers the changes in the credit quality of trade receivables during the period from the original credit date to the time it is presented in the balance sheet. Based on the historical experience, except for the counterparty of a transaction is any government agency or bank credit card center with great credit quality, in principle, the Company adopts individual evaluation and a simplified approach as in IFRS 9 to recognize loss allowance for trade receivables based on the lifetime expected credit losses. The lifetime expected credit losses are based on each customer’s past default history, current financial position, and industrial economic situation, as well as the industry outlook. Based on the Company’s historical experience in credit losses, the loss patterns of different customers are significantly different, the expected credit loss rate is calculated based on the trade receivables of individual customers.

If there is evidence that a counterparty is facing serious financial difficulties and the Company cannot reasonably expect to recover the amount, e.g., the counterparty is in liquidation, the Company will directly write off the relevant trade receivables, but will continue to try to collect the receivable. The recovered amount is recognized in profit or loss.

All the Company's trade receivables as of December 31, 2023 and 2022 are not past due.

11. Finance lease receivables

Finance lease receivables
Undiscounted lease payments Year 1 Year 2 Less: Unearned finance income Lease payments receivable Net investment in leases presented as finance lease receivables	December 31, 2023 $ 160 - 160 - 160 $ 160	December 31, 2022
		(	$ 21,209 493 21,702 155) 21,547 $ 21,547

• 27 -

The Company measures the loss allowance for the finance lease receivable based on the lifetime expected credit losses. As of the end of the reporting period, there were no overdue finance lease receivable. At the same time, considering the past default history of each counterparty, the future

development of the underlying lease industry, and the value of the collateral, the Company believed that the finance lease receivable above was not impaired.

12.

Inventories

Inventories
Property under development Property to be developed Buildings and land held for sale	December 31, 2023 $ 3,035,130 326,518 3,364,040 $ 6,725,688	December 31, 2022
			$ 1,861,344 316,757 4,534,238 $ 6,712,339

==> picture [426 x 243] intentionally omitted <==

----- Start of picture text -----

Property under development
Estimated
Project name completion year December 31, 2023 December 31, 2022
Sanzhi Project - East Side 2024 $ 2,737,282 $ 1,648,631
Sanzhi Project - West Side 2025 297,848 212,713
$ 3,035,130 $ 1,861,344
Property to be developed
Project name December 31, 2023 December 31, 2022
Subsection 1, Wenquan Section, Beitou
District $ 326,518 $ 316,757
Buildings and land held for sale
Project name December 31, 2023 December 31, 2022
Fu-Jou project $ 3,298,940 $ 4,466,239
Others 65,100 67,999
$ 3,364,040 $ 4,534,238
----- End of picture text -----

• (I) As of December 31, 2023 and 2022, it was expected that the inventory recovered after more than 12 months would be NT$624,366 thousand and NT$529,470 thousand respectively.

• (II) Please refer to Note 29 for information on the Company’s amount of inventories pledged.

• (III) To enable the construction projects and construction to proceed and the completed construction projects to be delivered smoothly, the Company’s registration of the trust of construction in progress is as follows:

Project name Trustee Trust period Sanzhi Project – East Pauguo Real Estate It started from December 30, 2019, the project & West Side Management Co., Ltd. was completed, and the first-time registration of ownership was completed.

For the above-mentioned trust contract, the Company entrusts the trustees to execute fund

control, property right management, financing loan repayment, self-raising funds, and necessary expenses and expenditures incurred by the trust relationship.

• 28 -

• (IV) Please refer to Note 17 for the information on the reclassification of inventory to investment property due to changes in the purpose of use.

• (V) The inventory-related cost of sales in 2023 and 2022 was NT$1,042,627 thousand and NT$660,254 thousand respectively. The cost of sales included gains on inventory value recoveries of NT$49,707 thousand and NT$31,319 thousand, respectively. The recovery in the net realizable value of inventories in 2023 and 2022 was due to the increase in the selling price of the inventories in the market.

• Prepayments and other assets

Prepayments and other assets
Offset against business tax payable Prepaid lease payment Others Prepayments Other assets - current	December 31, 2023 $ 34,981 732 186,836 $ 222,549 $ 218,125 4,424 $ 222,549	December 31, 2022
			$ 1,454 7,703 183,399 $ 192,556 $ 187,399 5,157 $ 192,556

1. Investments accounted for using equity method

Investments in subsidiaries

Investments in subsidiaries
Unlisted company Ji-Shun Life Tech Co., Ltd. (Ji- Shun) Li Chiang Development Co., Ltd. (Li-Chiang) Rih Yao Development Co., Ltd. (Rih-Yao) Radium Far East Co., Ltd. (Far East) Titan Development and Construction Co., Ltd. (Titan) Wan Da Tong Enterprise Co., Ltd. (Wan-Da-Tong) Radium-Kagaya International Hotel Co., Ltd. (KaGaYa) Zhao Yao Enterprise Co., Ltd. (Zhao-Yao) Xin Xiu Ge Hotel Co., Ltd. Co., Ltd. (Xin-Xiu-Ge) Jing-Jan Investment Holdings Co., Ltd. (Jing-Jan Hldg) Rih Siang Property Management Co., Ltd. (Rih-Siang) Rih-Zuan Green Energy Technology Co., Ltd. (Rih-Zuan) LiJiang Business Consulting (Shanghai) Limited (LiJiang) Rih Ding Circular Economy Investment Holding Co., Ltd. (Rih-Ding Hldg)	December 31, 2023 $ 861,432 360,809 566,273 571,130 1,346,130 1,800,179 181,792 1,248,544 313,261 3,747,847 1,873,456 44,363 2,428 7,363,465	December 31, 2022
		$ 901,148 425,411 669,997 582,944 1,271,165 1,774,998 149,405 1,336,994 316,808 3,646,316 1,896,618 45,120 2,495 7,280,611

• 29 -

Jing Ding Green Energy Technology Co., Ltd. (Jing-Ding) Bao Ding Reclaimed Water Co., Ltd. (Bao-Ding) Less: Unrealized gain from affiliate Less: Accumulated impairment	December 31, 2023 222,864 540,164 ( 1,280,990 ) ( 130,802) $ 19,632,345	December 31, 2022	December 31, 2022
	( (	( (	228,389 279,151 1,283,782 ) 130,802) $ 19,392,986

The Company's ownership interest and percentage of voting rights in the subsidiaries at the end of the reporting period are as follows:

porting period are as follows:
Unlisted company Ji-Shun Li- Chiang Rih-Yao Far East Titan Wan-Da-Tong KaGaYa Zhao-Yao Xin-Xiu-Ge Jing-Jan Hldg Rih-Siang Rih-Zuan LiJiang Rih-Ding Hldg Jing-Ding Bao-Ding	December 31, 2023 100.00% 100.00% 100.00% 99.93% 100.00% 28.35% 100.00% 100.00% 100.00% 61.06% 100.00% 90.00% 100.00% 100.00% 37.00% 55.00%	December 31, 2022
		100.00% 100.00% 100.00% 99.93% 100.00% 28.35% 100.00% 100.00% 100.00% 61.06% 100.00% 90.00% 100.00% 100.00% 37.00% 55.00%

The Company’s shareholding in Wan-Da-Tong is 28.35%. Since the remaining 71.65% of the shares are held by Jing-Jan Hldg, and Titan holds 36.80% of the shares of Jing-Jan Hldg, it is judged that the Company is able to exercise significant influence over Wan-Da-Tong, so it is classified as a subsidiary.

The Company’s shareholding in Jing-Ding is 37.00%. Because Ding Sheng Green Energy Technology Co., Ltd.(Ding-Sheng) holds 33.00% of its shares, and Rih-Ding Hldg holds 100.00% of Ding-Sheng’s shares, it is judged that the Company is able to exercise significant influence over JingDing, so it is classified as a subsidiary.

The share of profits and losses and other comprehensive income of the subsidiaries accounted for using the equity method in 2023 and 2022 were recognized based on the subsidiaries’ financial statements that have been audited by CPAs for the same periods.

As of December 31, 2023 and 2022, the accumulated impairment of the investment under the equity method by the Company was both NT$130,802 thousand.

Bao-Ding was established on May 11, 2022, and the establishment was approved by and registered with the Administration of Commerce, Ministry of Economic Affairs.

For the amount of investments accounted for using equity method pledged by the Company, please refer to Note 29.

• 30 -

• Property, plant and equipment

• (I) Self-use

Self-use
Cost Balance at January 1, 2023 Additions Disposals Balance at December 31, 2023 Accumulated depreciation and impairment Balance at January 1, 2023 Depreciation expenses Disposals Balance at December 31, 2023 Net at December 31, 2023 Cost Balance at January 1, 2022 Additions Disposals Balance at December 31, 2022 Accumulated depreciation and impairment Balance at January 1, 2022 Depreciation expenses Disposals Balance at December 31, 2022 Net at December 31, 2022		Freehold Land $ 47,750 - - $ 47,750 $ - - - $ - $ 47,750 $ 47,750 - - $ 47,750 $ - - - $ - $ 47,750		Buildings $ 83,418 - - $ 83,418 $ 33,953 2,597 - $ 36,550 $ 46,868 $ 83,418 - - $ 83,418 $ 31,356 2,597 - $ 33,953 $ 49,465		Transportation Equipment $ 1,182 - - $ 1,182 $ 1,165 17 - $ 1,182 $ - $ 1,302 - 120 ) $ 1,182 $ 1,254 31 120 ) $ 1,165 $ 17	O	ffice Equipment $ 43,054 1,215 4,482) $ 39,787 $ 35,084 2,452 4,482 ) $ 33,054 $ 6,733 $ 38,660 4,394 - $ 43,054 $ 32,939 2,145 - $ 35,084 $ 7,970		Other Equipment $ 20,921 2,886 - $ 23,807 $ 16,312 1,175 - $ 17,487 $ 6,320 $ 18,968 1,953 - $ 20,921 $ 15,398 914 - $ 16,312 $ 4,609		Total
					( (		( (				( ( ( (	$ 196,325 4,101 4,482) $ 195,944 $ 86,514 6,241 4,482 ) $ 88,273 $ 107,671 $ 190,098 6,347 120 ) $ 196,325 $ 80,947 5,687 120 ) $ 86,514 $ 109,811

Depreciation expenses of the property, plant and equipment are calculated on a straight-line basis over their estimated useful lives as shown in the following:

mated useful lives as shown in the following:
Buildings	10-50 years
Transportation Equipment	5 years
Office Equipment	3-15 years
Other Equipment	1-10 years

• (II) As of December 31, 2023 and 2022, the accumulated impairment of the property, plant and equipment, through the assessment of their recoverable amounts based on their net fair values was both NT$19,569 thousand.

• (III) For the amount of property, plant and equipment pledged by the Company, please refer to Note 29.

• 31 -

16. Lease arrangements

• (I) Right-of-use Assets

Right-of-use Assets
Carrying amount Land Buildings Transportation Equipment Additions to right-of-use assets Depreciation charge for right-of-use assets Land Buildings Transportation Equipment	December 31, 2023 $ 16 - 1,744 $ 1,760 2023 $ 1,093 $ 187 10,776 1,820 $ 12,783	December 31, 2022
			$ 203 10,776 3,055 $ 14,034 2022 $ 2,689 $ 16 10,500 2,582 $ 13,098

The above-mentioned amount of right-of-use assets does not include right-of-use assets that meet the definition of investment property.

• (II) Lease liabilities

Lease liabilities
Carrying amount Current Non-current	December 31, 2023 $ 2,067 $ 347	December 31, 2022
			$ 78,749 $ 1,808

Range of discount rate for lease liabilities is as follows:

Land Buildings Transportation Equipment	December 31, 2023 1.74% 1.74% 1.74%～1.83%	December 31, 2022
		1.74% 1.74% 1.74%～2.15%

• (III) Material leasing activities and terms

The Company has leased certain land and buildings for offices, and reception centers, with the lease terms ranging from 1.2 to 3 years. The Company has also leased certain transportation

equipment over a lease term of 2 to 3 years. The Company does not have preferential right to acquire the land and buildings leased at the end of the lease term.

• (IV) Sublease

The Company’s sublease transactions have been detailed in Notes 11 and 17.

• (V) Other lease information

Expenses relating to short-term lease Total cash outflow of leases		2023 $ 1,973 ( $ 81,003 )	(	2022 $ 3,100 $ 122,777 )

• 32 -

• Investment properties

The Company has leased certain office equipment which qualifies for short-term leases and certain equipment which qualifies for low-value asset leases. The Company has elected to apply the recognition exemption for said equipment and, thus, did not recognize the right-of-use assets and lease liabilities of said leases.

Investment properties
Cost Balance at January 1, 2023 Disposals Transfers from finance lease receivable Transfers from inventories Balance at December 31, 2023 Accumulated depreciation and impairment Balance at January 1, 2023 Depreciation expenses Disposals Reversal of impairment loss recognized in profit or loss Transfers from inventories Balance at December 31, 2023 Net at December 31, 2023 Cost Balance at January 1, 2022 Transfers to finance lease receivables Transfers from inventories Transfers to inventories Balance at December 31, 2022 Accumulated depreciation and impairment Balance at January 1, 2022 Depreciation expenses Transfers to finance lease receivables Transfers from inventories Transfers to inventories Balance at December 31, 2022 Net at December 31, 2022		Completed Investment Properties $ 7,422,831 - - 185,265 $ 7,608,096 $ 1,208,344 158,148 - 7,063 ) 17,748 $ 1,377,177 $ 6,230,919 $ 7,387,312 - 120,379 84,860) $ 7,422,831 $ 1,074,186 155,693 - 4,776 26,311) $ 1,208,344 $ 6,214,487	Right-of-use Assets $ 166,457 ( 148,055 ) 1,874 - $ 20,276 $ 139,153 28,192 ( 147,694 ) - - $ 19,651 $ 625 $ 187,579 ( 21,122 ) - - $ 166,457 $ 113,071 42,400 ( 16,318 ) - - $ 139,153 $ 27,304		Total
	( ( (		( ( ( (	( ( ( ( ( ( (	$ 7,589,288 148,055 ) 1,874 185,265 $ 7,628,372 $ 1,347,497 186,340 147,694 ) 7,063 ) 17,748 $ 1,396,828 $ 6,231,544 $ 7,574,891 21,122 ) 120,379 84,860) $ 7,589,288 $ 1,187,257 198,093 16,318 ) 4,776 26,311) $ 1,347,497 $ 6,241,791

(I) For the right-of-use assets in the investment properties, it is the buildings subleased by the Company to others in the form of operating leases.

• 33 -

• (II) The fair value of the investment properties by the Company as of December 31, 2023 and 2022 was NT$11,978,271 thousand and NT$11,242,179 thousand, respectively. The fair value was based on the appraisals conducted by independent appraisers Wei-Hsin Chin, Liang-An Chi, and Shih-Ming Wang, who were not related parties, at the dates. Said appraisals were conducted using the comparative method, the income approach, and the land development analysis method.

• (III) The major components of the Company’s investment properties mainly include the above-ground structures and interior and exterior decoration, etc., and are depreciated according to their useful lives of 10–50 years.

• (IV) For the amount of investment properties pledged by the Company, please refer to Note 29.

• (V) As of December 31, 2023 and 2022, the accumulated impairment of the investment properties, through the assessment of their recoverable amounts based on their net fair values was NT$86,479 thousand and NT$74,365 thousand, respectively. The Company determines the recoverable amount of the investment properties based on the fair value less disposal costs. The relevant fair value is determined under the comparative method. The main assumptions include the estimated selling price, which belongs to the Level 2 fair value measurement.

• (VI) The lease terms for the lease out of investment properties range from 1 to 18 years. When the lessee exercises the right to renew a lease, it is agreed that the rent will be adjusted according to the market level. At the end of the lease term, the lessee has no preferential right to purchase the investment properties. In addition to fixed lease payments, the lease contract also stipulates that the lessee shall pay variable lease payments based on a specific percentage of its revenue.

• (VII) The total amount of lease payments that will be received in the future for leasing out investment properties under operating leases is as follows:

Year 1 Year 2 Year 3 Year 4 Year 5 Year 5 onwards	December 31, 2023 $ 142,651 112,763 100,160 98,797 28,633 12,568 $ 495,572	December 31, 2022	December 31, 2022
			$ 104,613 53,822 24,374 12,088 10,806 18,260 $ 223,963

• 34 -

18. Borrowings

(I) Short-term borrowings

Secured borrowings Bank loans Unsecured borrowings Bank loans	December 31, 2023 $ 1,212,296 60,000 $ 1,272,296	December 31, 2022	December 31, 2022
			$ 1,231,179 236,004 $ 1,467,183

The interest rate range of short-term borrowings as of December 31, 2023 and 2022 was 1.85%– 3.72% and 2.38%–3.60%, respectively. Please refer to Note 29 for the collateral pledged for the above-mentioned borrowings.

(II) Short-term bills payable

==> picture [412 x 135] intentionally omitted <==

----- Start of picture text -----

Guarantee or acceptance institutions December 31, 2023 December 31, 2022
Entie Bank $ 1,062,800 $ 760,000
Taiwan Cooperative Bills Finance
Corporation 640,400 381,400
International Bills Finance
Corporation 478,200 275,200
Yuanta Bank - 500,000
2,181,400 1,916,600
Less: Discount on short-term bills
payable ( 2,942 ) ( 4,249 )
$ 2,178,458 $ 1,912,351
----- End of picture text -----

The interest rate range of short-term bills payable as of December 31, 2023 and 2022 was 1.39%2.46% and 1.42%-2.15%, respectively. Please refer to Note 29 for the collateral pledged for the abovementioned short-term bills payable.

(III) Long-term borrowings

Long-term borrowings
Secured borrowings Syndicated loan project led by Bank of Taiwan Syndicated loan project led by International Bills Finance Corporation Other borrowings from banks Unsecured borrowings Other borrowings from banks Less: Deduction in long-term borrowings –arrangement fee Less: Current portion of long-term borrowings due within one year or one business cycle Add: Deduction in long-term borrowings due within one year or one business cycle - arrangement fee Long-term borrowings	December 31, 2023 $ 2,000,000 1,244,003 6,901,130 1,091,960 ( 10,517 ) ( 2,133,294 ) 4,781 $ 9,098,063	December 31, 2022
	( (	( (	$ 1,810,000 647,676 7,333,940 1,526,000 7,763 ) 5,336,729 ) 7,763 $ 5,980,887

• 35 -

The interest rate range of long-term borrowings as of December 31, 2023 and 2022 was 2.056%– 3.395% and 1.741%–3.214%, respectively.

The syndicated loan project led by Bank of Taiwan includes 5 banks, The Company pledged that, starting in 2024, at the end of each year throughout the duration of the credit extension, the debt ratio shall not be higher than 450%, the interest coverage ratio shall be maintained at 2 times or above, and the tangible assets shall not be less than NT $6,500,000 thousand.

The syndicated loan project led by International Bills Finance Corporation includes 3 banks. Please refer to Note 29 for the collateral pledged for the above-mentioned borrowings.

19. Bonds payable

Bonds payable
Secured domestic bonds Less: Current portion Bonds payable	December 31, 2023 $ 5,900,000 ( 1,000,000 ) $ 4,900,000	December 31, 2022
	(		$ 5,900,000 - $ 5,900,000

• (I) The Company issued the first domestic secured ordinary bonds on September 14, 2017. The main conditions for the issue are as follows:

• Total amount of issue: NT$1,000,000 thousand.

• Price: The bonds are issued in full by face value, each with a face value of NT$1,000 thousand.

• Coupon interest rate and method of repayment of principal and interest: Annual interest rate is

• 1.02% with repayment of principal in a lump sum upon maturity.

• Duration: 5 years (September 14, 2017 to September 14, 2022).

• Guarantee method: Taiwan Cooperative Bank is entrusted to guarantee the bonds in accordance with the guarantee contract.

• The Company has redeemed the bonds on September 14, 2022.

• (II) The Company issued the second domestic secured ordinary bonds on November 23, 2017. The main conditions for the issue are as follows:

• Total amount of issue: NT$500,000 thousand.

• Price: The bonds are issued in full by face value, each with a face value of NT$1,000 thousand.

• Coupon interest rate and method of repayment of principal and interest: Annual interest rate is

• 1.02% with repayment of principal in a lump sum upon maturity.

• Duration: 5 years (November 23, 2017 to November 23, 2022).

• Guarantee method: Taiwan Business Bank is entrusted to guarantee the bonds in accordance with the guarantee contract.

• The Company has redeemed the bonds on November 23, 2022.

• (III) The Company issued the first domestic secured ordinary bonds on July 1, 2019. The main conditions for the issue are as follows:

• Total amount of issue: NT$1,000,000 thousand.

• Price: The bonds are issued in full by face value, each with a face value of NT$1,000 thousand.

• Coupon interest rate and method of repayment of principal and interest: Annual interest rate is 0.80% with repayment of principal in a lump sum upon maturity.

• Duration: 5 years (July 1, 2019 to July 1, 2024).

• 36 -

  1. Guarantee method: Taiwan Cooperative Bank is entrusted to guarantee the bonds in accordance with the guarantee contract.

• (IV) The Company issued the first domestic secured ordinary bonds on June 1, 2020. The main conditions for the issue are as follows:

  1. Total amount of issue: NT$1,000,000 thousand.

  2. Price: The bonds are issued in full by face value, each with a face value of NT$1,000 thousand.

  3. Coupon interest rate and method of repayment of principal and interest: Annual interest rate is

     • 0.68% with repayment of principal in a lump sum upon maturity.

  4. Duration: 5 years (June 1, 2020 to June 1, 2025).

  5. Guarantee method: First Commercial Bank is entrusted to guarantee the bonds in accordance with the guarantee contract.

• (V) The Company issued the second domestic secured ordinary bonds on July 1, 2020. The main conditions for the issue are as follows:

  1. Total amount of issue: NT$1,000,000 thousand.

  2. Price: The bonds are issued in full by face value, each with a face value of NT$1,000 thousand.

  3. Coupon interest rate and method of repayment of principal and interest: Annual interest rate is

     • 0.65% with repayment of principal in a lump sum upon maturity.

  4. Duration: 5 years (July 1, 2020 to July 1, 2025).

  5. Guarantee method: First Commercial Bank is entrusted to guarantee the bonds in accordance with the guarantee contract.

• (VI) The Company issued the third domestic secured ordinary bonds on December 29, 2020. The main conditions for the issue are as follows:

  1. Total amount of issue: NT$1,000,000 thousand.

  2. Price: The bonds are issued in full by face value, each with a face value of NT$1,000 thousand.

  3. Coupon interest rate and method of repayment of principal and interest: Annual interest rate is

     • 0.55% with repayment of principal in a lump sum upon maturity.

  4. Duration: 5 years (December 29, 2020 to December 29, 2025).

  5. Guarantee method: Taiwan Business Bank is entrusted to guarantee the bonds in accordance with the guarantee contract.

• (VII) The Company issued the first domestic secured ordinary bonds on August 2, 2021. The main conditions for the issue are as follows:

  1. Total amount of issue: NT$500,000 thousand.

  2. Price: The bonds are issued in full by face value, each with a face value of NT$1,000 thousand.

  3. Coupon interest rate and method of repayment of principal and interest: Annual interest rate is 0.61% with repayment of principal in a lump sum upon maturity.

  4. Duration: 5 years (August 2, 2021 to August 2, 2026).

  5. Guarantee method: Taiwan Business Bank is entrusted to guarantee the bonds in accordance with the guarantee contract.

• 37 -

• (VIII) The Company issued the first domestic secured ordinary bonds on September 12, 2022. The main conditions for the issue are as follows:

• Total amount of issue: NT$900,000 thousand.

• Price: The bonds are issued in full by face value, each with a face value of NT$1,000 thousand.

• Coupon interest rate and method of repayment of principal and interest: Annual interest rate is 2%; 15% of the total issue amount at the end of three years; 15% of the total issue amount at the end of four years and 70% of the total issue amount at the end of five years.

• Duration: 5 years (September 12, 2022 to September 12, 2027).

• Guarantee method: Taiwan Cooperative Bank is entrusted to guarantee the bonds in accordance with the guarantee contract.

• (IX) The Company issued the second domestic secured ordinary bonds on November 18, 2022. The main conditions for the issue are as follows:

• Total amount of issue: NT$500,000 thousand.

• Price: The bonds are issued in full by face value, each with a face value of NT$1,000 thousand.

• Coupon interest rate and method of repayment of principal and interest: Annual interest rate is

  • 2.20% with repayment of principal in a lump sum upon maturity.

• Duration: 5 years (November 18, 2022 to November 18, 2027).

• Guarantee method: Taiwan Business Bank is entrusted to guarantee the bonds in accordance with the guarantee contract.

Please refer to Note 29 for the collateral pledged for the above-mentioned corporate bonds.

20. Provisions

Provisions
Non-current Warranties	December 31, 2023 $ 242,577	December 31, 2022
			$ 249,645

The provisions for warranty is the present value of the best estimate of the future outflow of economic benefits caused by the warranty obligation made by the management of the Company according to the sales contract. This estimate is based on historical warranty experience, and is adjusted in consideration of new materials, process changes, or other factors that affect product quality.

21. Maturity analysis of assets and liabilities

The assets and liabilities related to the Company’s construction business is classified as current or non-current according to the operating cycle. The relevant amounts recognized are based on the amounts expected to be recovered or repaid within one year and more than one year after the end of the reporting period, which are listed below:

• 38 -

Assets Financial assets at amortized cost -current Notes receivable and trade receivables Buildings and land held for sale Property under development Property to be developed Refundable deposits - current Incremental costs of obtaining a contract - current Liabilities Contract liabilities - current Guarantee deposits received (shown as other current liabilities) Current portion of long-term borrowings Assets Financial assets at amortized cost -current Notes receivable and trade receivables Buildings and land held for sale Property under development Property to be developed Refundable deposits - current Incremental costs of obtaining a contract - current Liabilities Contract liabilities - current Guarantee deposits received (shown as other current liabilities) Current portion of long-term borrowings			December31,2023
		Within 1 year $ 1,294 $ 35,572 $ 3,364,040 $ 2,737,282 $ - $ 75,534 $ 70,578 $ 683,492 $ 337 $ 992,311	More than 1 year $ 113,827 $ 13,219 $ - $ 297,848 $ 326,518 $ - $ 27,507 $ 115,706 $ - $ 248,078 December31,2022		Total
					$ 115,121 $ 48,791 $ 3,364,040 $ 3,035,130 $ 326,518 $ 75,534 $ 98,085 $ 799,198 $ 337 $ 1,240,389
		Within 1 year $ - $ 19,998 $ 4,534,238 $ - $ - $ 80,311 $ - $ 35,170 $ 262 $ -	More than 1 year $ 313,502 $ 1,202 $ - $ 1,861,344 $ 316,757 $ - $ 82,458 $ 675,208 $ - $ 642,664		Total
					$ 313,502 $ 21,200 $ 4,534,238 $ 1,861,344 $ 316,757 $ 80,311 $ 82,458 $ 710,378 $ 262 $ 642,664

• 39 -

22. Retirement benefit plans (I) Defined contribution plans

The Company has adopted a pension plan under the Labor Pension Act (LPA), which is a statemanaged defined contribution plan. Under the LPA, the Company makes monthly contributions to employees’ individual pension accounts of the Bureau of Labor Insurance at 6% of monthly salaries and wages.

(II) Defined benefit plans

The pension system adopted by the Company in accordance with the Labor Standards Act of R.O.C. is a state-managed defined benefit pension plan. The payment for employee pensions is calculated based on the length of service and the average salary in the 6 months prior to the approved retirement date. The Company contributes pensions at 2% of the total monthly employee salaries, which are deposited by the Pension Fund Monitoring Committee in the pension account with the Bank of Taiwan in the name of the committee. Before the end of each year, if the balance in the pension account assessed is inadequate to pay for the retirement benefits for employees who meet the retirement requirements in the following year, the Company will contribute an amount to make up for the difference in a lump sum by the end of March of the following year. The pension fund is managed by the Bureau of Labor Funds, Ministry of Labor; the Company has no right to influence the investment management strategy.

The amounts included in the parent company only balance sheets in respect of the Company’s defined benefit plans are as follows:

defined benefit plans are as follows:
Present value of defined benefit obligation Fair value of plan asset Insufficiency in contribution Net defined benefit liabilities	December 31, 2023 $ 18,027 ( 8,837) 9,190 $ 9,190	December 31, 2022
	(	(	$ 17,362 11,863) 5,499 $ 5,499

Changes in net defined benefit liabilities are as follows:

January 1, 2022 Service cost Current service cost Net interest expense (income) Recognized in profit or loss Remeasurement Return on plan assets (excluding amounts included in net interest) Actuarial gain - changes in financial assumptions Actuarial loss - experience adjustments Recognized in other comprehensive income	Present value of defined benefit obligation $ 19,757 66 126 192 - ( 813 ) 511 ( 302)	Fair value of plan asset ($ 12,514) - ( 81) ( 81) ( 953 ) - - ( 953)	Net defined benefit liabilities $ 7,243 66 45 111 ( 953 ) ( 813 ) 511 ( 1,255)

(Continued)

• 40 -

Contributions from the employer Benefit payment December 31, 2022 Service cost Current service cost Net interest expense (income) Recognized in profit or loss Remeasurement Return on plan assets (excluding amounts included in net interest) Actuarial loss - changes in financial assumptions Actuarial loss - experience adjustments Recognized in other comprehensive income Contributions from the employer Benefit payment December 31, 2023	Present value of defined benefit obligation Fair value of plan asset Net defined benefit liabilities	Present value of defined benefit obligation Fair value of plan asset Net defined benefit liabilities	Present value of defined benefit obligation Fair value of plan asset Net defined benefit liabilities	Present value of defined benefit obligation Fair value of plan asset Net defined benefit liabilities
	( (	- ( 2,285) 17,362 ( 68 197 ( 265 ( - ( 83 4,197 4,280 ( - ( 3,880) $ 18,027 (	600 ) ( 2,285 11,863 ) - 130) 130) 124 ) ( - - 124) 600 ) ( 3,880 $ 8,837 )	600 ) - 5,499 68 67 135 124 ) 83 4,197 4,156 600 ) - $ 9,190

Due to the pension plans under the Labor Standards Act, the Company is exposed to the following risks:

1. Investment risk: The Bureau invests labor pension funds in domestic (foreign) equity securities, debt securities, and bank deposits on its own use and through agencies entrusted. However, the income from the Company’s amount allocated to plan assets is calculated based on the interest rate not lower than the local bank's interest rate for 2-year time deposits.

2. Interest risk: A decrease in the interest rate in the government bonds/corporate bonds will increase the present value of the defined benefit obligation; however, the return on the debt investment through the plan assets will also increase, and the increases will partially offset the effect of the net defined benefit liability.

3. Salary risk: The present value of the defined benefit obligation is calculated with reference to the future salaries of the participants in the plan. As such, an increase in the salary of the participants in the plan will increase the present value of the defined benefit obligation.

The actuarial valuations of the present value of the defined benefit obligation were carried out by qualified actuaries. The critical assumptions made on the measurement date are as follows:

Discount rate Expected rate of salary increase Turnover rate	December 31, 2023 1.20% 2.00% 0.40%	December 31, 2022
		1.25% 2.00% 0.40%

• 41 -

If each of the critical actuarial assumptions is subject to reasonably possible changes, when all other assumptions remain unchanged, the amounts by which the present value of the defined benefit obligation would increase (decrease) are as follows:

Discount rate 0.25% increase 0.25% decrease Expected rate of salary increase 0.25% increase 0.25% decrease Turnover rate 110% increase 90% decrease	December 31, 2023 ( $ 409 ) $ 422 $ 417 ( $ 407 ) ( $ 1 ) $ 1	December 31, 2022	December 31, 2022
	( ( (	( (	$ 323 ) $ 332 $ 329 $ 321 ) $ - $ -

As actuarial assumptions may be correlated, it is unlikely that only a single assumption would occur in isolation of one another, so the sensitivity analysis above may not reflect the actual changes in the present value of the defined benefit obligation.

23. (I)	Expected contributions to the plans for the next year Average duration of the defined benefit obligation Equity Share capital Authorized shares (in thousands) Authorized capital Issued and paid shares (in thousands) Issued capital	December 31, 2023 $ 404 9 years December 31, 2023 950,000 $ 9,500,000 880,095 $ 8,800,946	December 31, 2022 $ 359 7 years December 31, 2022 950,000 $ 9,500,000 880,095 $ 8,800,946

The ordinary shares issued, with a par value of NT$10 per share, are entitled to one voting right per share and to the right to receive dividends.

The board of directors passed the resolution on December 24, 2021 to purchase 20,000 thousand treasure shares. The cancellation and change registration for the capital reduction was conducted in accordance with the law, with March 9, 2022 set as the record date for capital reduction.

(II) Capital Surplus

Capital Surplus
May be used to offset a deficit, distributed as cash dividends, or transferred to share capital(Note) Additional paid in capital	December 31, 2023 $ 1,196,582	December 31, 2022
		$ 1,196,582

(Continued)

• 42 -

Difference between consideration and carrying amount of subsidiaries acquired or disposed Retirement of treasury shares	December 31, 2023 59,494 34,141 $ 1,290,217	December 31, 2022	December 31, 2022
			59,494 34,141 $ 1,290,217

Note: Such capital surplus may be used to offset a deficit; in addition, when the Company has no deficit, such capital surplus may be distributed as cash dividends or transferred to share capital (limited to a certain percentage of the Company’s capital surplus).

(III) Retained earnings and dividends policy

In accordance with the Company's Articles of Incorporation regarding earnings allocation, when there are earnings in the Company's annual final accounts, the earnings shall be allocated in the following order:

1. Pay taxes.

2. Offset the deficits from prior years.

3. Set aside 10% of the balance for legal reserve. Where such legal reserve amounts to the total paid-in capital, this provision shall not apply.

4. Set aside or reverse the special reserve when necessary in accordance with the law.

5. With any remaining balance after deducting the amounts in 1.–4., together with the accumulated earnings from prior years, the board of directors shall consider the Company's financial position and draft a proposal for distributing dividends to shareholders. The proposal will be submitted it to the shareholders' meeting for a resolution.

For information on the distribution of the employee compensation and remuneration of directors, please refer to Note 25(7) regarding employee compensation and remuneration of directors.

The life cycle of the Company's industry is at a developed and stable stage. After considering the Company's earnings, future capital needs, and development plans, the Company's dividends will be distributed in both stocks and cash. Of them, the cash dividends distributed shall not be less than 20% of the total dividends distributed for the year. However, if the cash dividends are less than NT$0.1 (inclusive) per share, the dividends may be fully distributed in stock.

Appropriation of earnings to legal reserve shall be made until the reserve equals the Company’s paid-in capital. Legal reserves may be used to offset the deficit. If the Company has no deficit and the legal reserve has exceeded 25% of the Company’s paid-in capital, the excess may be transferred to share capital or distributed in cash.

When a special reserve is appropriated from the net deduction in other equity accumulated in the previous period, where the undistributed earnings of the previous period are insufficient, the undistributed earnings will be included in the undistributed earnings of the current period from net income plus items other than net income after tax of the current period.

The earnings distribution proposals for 2022 and 2021 approved in the shareholders’ meetings on May 30, 2023 and May 27, 2022, respectively, are as follows:

• 43 -

Legal Reserve Special Reserves Cash dividends Cash dividends per share (NT$)		2022 $ 7,709 $ 2,294 $ - $ -		2021 $ 6,164 $ 156 $ 176,019 $ 0.20

• (IV) Treasury shares

Treasury shares
Purpose of Buy-back Number of shares at January 1, 2022 Increase during the year Decrease during the year Number of shares at December 31, 2022	Shares Cancelled (in thousands of shares)
	(	3,649 16,351 20,000) -

Treasury shares hold by the Company may not be pledged in accordance with the Securities and Exchange Act, and are not entitled to dividends or voting rights.

1. Revenue

Revenue
Revenue from contracts with customers Construction revenue Rental income Investment properties (Note 17) Variable lease payments that do not depend on an index or a rate Other lease payments		2023 $ 1,081,969 14,251 168,025 182,276 $ 1,264,245		2022
				$ 789,784 15,424 140,163 155,587 $ 945,371

(I) Contract balance

Trade receivables (Note 10) Contract liabilities - current Sale of properties	December 31, 2023 $ 21,763 $ 799,198	December 31, 2022 $ 20,224 $ 710,378	January 1, 2022 $ 28,672 $ 228,169

The change in contract assets and liabilities is mainly due to the difference between the point of meeting the performance obligation and the time of payment by the customer.

The contract liabilities at the beginning of the year recognized as revenue for the current year is as follows:

Sale of properties		2023 $ 472		2022 $ 27,299

The credit risk management adopted by the Company for contract assets is the same as that for trade receivables, please refer to Note 10.

• 44 -

(II) Assets related to contract costs

(II) Assets related to contract costs
Current Incremental cost of obtaining a contract 25. Net profit (I) Interest income Bank deposits Net investments in leases Interest income - other (II) Other income Managerial and technical service income Dividends Others (III) Other gains and (losses) Net foreign exchange gains (losses) Gains on disposals of property, plant and equipment Reversal of impairment loss on investment properties Net gains (losses) on financial assets at fair value through profit or loss Other expenditures (IV) Finance costs Interest on bank loans Interest on lease liabilities Others Less: Amounts included in the cost of qualifying assets Relevant information on capitalization of Capitalized interest amount Capitalization rate		December 31, 2023 $ 98,085 2023 $ 15,005 141 43 $ 15,189 2023 $ 10,508 10 10,123 $ 20,641 2023 ( $ 39 ) - 7,063 260 ( 1,343) $ 5,941 2023 $ 380,832 798 145,562 ( 42,528) $ 484,664 interest is as follows: 2023 $ 42,528 2.03%～2.44%			December 31, 2022 $ 82,458 2022 $ 4,431 708 15 $ 5,154 2022
						$
						$
						$
		( (			( ( (	$
						$
					(	$
						$

• 45 -

(V) Depreciation and amortization

(V) Depreciation and amortization
An analysis of depreciation by function Operating costs Operating expenses An analysis of amortization by function Operating expenses (VI) Employees’ benefits expenses Post-employment benefits (Note 22) Defined contribution plans Defined benefit plans Other employee benefits Total employee benefits expenses An analysis of employee benefits expense by function Operating costs Operating expenses		2023 $ 159,324 46,040 $ 205,364 $ 8,602 2023 $ 5,780 135 173,516 $ 179,431 $ 30 179,401 $ 179,431		2022
				$ 156,574 60,304 $ 216,878 $ 7,738 2022
				$ 5,655 111 175,307 $ 181,073 $ 58 181,015 $ 181,073

(VII) Employee compensation and remuneration of directors

If the Company records a profit in the year, it shall allocate no less than 0.5% of the balance for employee compensation, which shall be distributed in stock or cash as resolved by of the board of directors; the Company may allocate no more than 1% of said profit for the remuneration of directors as resolved by of the board of directors. The proposals for employee compensation and directors’ remuneration shall be reported to the shareholders’ meeting.

Where there is an accumulated loss, the profit shall be reserved to make up for the loss and the remuneration to employees and directors shall be provided in proportion in accordance with the aforementioned amount. The Company carries out the transfer of treasury shares to employees, employee stock options, employee remuneration, employee subscription of new shares, and restricted stock awards to employees of controlling or subordinate companies who meet certain conditions. These conditions are determined by the board of directors.

There is no estimated remuneration to employees and directors for 2023 due to the Company’s loss before income tax. The Company’s estimated remuneration to employees and directors for 2022 is as follows:

s as follows:
Compensation of employees Remuneration to directors	2022
	Cash
	$ 1,800 700

• 46 -

Remuneration to employees and directors for 2022, and 2021 resolved by the Board of Directors is as follows:

s as follows:
Date of resolution Compensation of employees Remuneration to directors	2022 March 14, 2023 $ 2,000 $ 700	2021
		March 29, 2022 $ 1,300 $ 600

As the amounts for the differences as described above were not significant, they were adjusted to profit or loss of the following year.

For the information on the Company’s remuneration to employees and directors for 2023 and

2022 as adopted by resolution of the Board of Directors, please visit the Market Observatory Post

System (MOPS) of the Taiwan Stock Exchange.

26. Income tax

• (I) Income tax recognized in profit or loss

Major components of income tax (benefits) expenses are as follows:

Tax currently payable In respect of the current year Adjustments for prior year Income tax (benefit) expense recognized in profit or loss		2023 $ 28 77) $ 49 )		2022
	( (		(	$ 1,832 106) $ 1,726

The Company’s reconciliation between the accounting income and the current income tax (benefit) expense is as follows:

(Loss) profit before income tax Income tax (benefit) expense calculated at the statutory rate (20%) on (loss) profit before income tax Nondeductible expense in determining taxable income Tax- exempt income Deductible temporary differences Land value increment tax Adjustments for prior year’s tax Loss carryforwards that cannot be retained Income tax (benefit) expense recognized in profit or loss	( ( ( ( ( (	2023 $ 92,574 ) $ 18,515 ) 54,343 206,811 ) 6,345 ) 28 77 ) 177,328 $ 49 )	( ( (	2022 $ 76,035 $ 15,207 60,428 202,456 ) 1,792 ) 1,832 106 ) 128,613 $ 1,726

• 47 -

(II) Deductible temporary differences, unused loss carryforwards, and unused investment tax credits for deferred tax assets not recognized in the parent company only balance sheet

Loss carryforwards Deductible temporary difference Investment tax credits Major infrastructure projects	December 31, 2023 $ 5,975,182 $ 2,065,779 $ -	December 31, 2022 $ 9,431,252 $ 2,108,004 $ 80,000

(III) Information on unused investment tax credits, loss carryforwards, and tax exemptions

As of the end of 2023, the relevant information on loss carryforwards:

	Balance before deduction $ 1,874,106 $ 4,101,076	Final year for deduction
		2027 2028

• (IV) Income tax approval

The profit-seeking enterprise income tax returns filed by the Company up to 2021 have been approved by the tax collection authority.

27. Earnings (loss) per share

Basic earnings per share Diluted earnings per share	(	2023 $ 0.11 )	Unit: NT$ per share 2022 $ 0.08 $ 0.08

The earnings (loss) and weighted average number of ordinary shares used to calculate the earnings (loss) per share are as follows:

Net (loss) profit for the year

Net (loss) profit for the year
Earnings (loss) used in the computation of basic earnings per share Earnings used in the computation of diluted earnings per share Number of shares Weighted average number of ordinary shares used in computation of basic (loss) earnings per share Effect of potentially dilutive ordinary shares: Compensation of employees Weighted average number of ordinary shares used in the computation of diluted earnings per share	(	2023 2022 $ 92,525 ) $ 74,309 $ 74,309 Unit: In thousands of shares 2023 2022 880,095 880,920 226 881,146
				880,920 226 881,146

• 48 -

If the Company can settle the compensation to employees in cash or shares, the Company assumes the entire amount of the compensation would be settled in shares and the resulting potential shares are included in the weighted average number of shares outstanding used in the computation of diluted earnings per share if the effect is dilutive. Such a dilutive effect of the potential shares is included in the computation of diluted earnings per share until the shareholders resolve the number of shares to be distributed to employees at their meeting in the following year.

The Company's remuneration to employees may dilute basic earnings per share in the future. However, they are anti-dilutive in 2023 and excluded from the computation of diluted earnings per share.

28. Related party transaction

Except as disclosed in other notes, the transactions between the Company and related parties are as follows:

(I) Related party name and relationship

==> picture [412 x 24] intentionally omitted <==

----- Start of picture text -----

Relationship with the
Related party name Company
----- End of picture text -----

Related party name	Relationship with the Company
KaGaYa	Subsidiaries
Ji-Shun	Subsidiaries
Titan	Subsidiaries
Far East	Subsidiaries
Xin-Xiu-Ge	Subsidiaries
Wan-Da-Tong	Subsidiaries
Li- Chiang	Subsidiaries
Zhao-Yao	Subsidiaries
Rih-Yao	Subsidiaries
Jing-Jan Hldg	Subsidiaries
Rih-Siang	Subsidiaries
Rih-Zuan	Subsidiaries
Jing-Ding	Subsidiaries
Rih-Ding Hldg	Subsidiaries
Bao-Ding	Subsidiaries
Ding-Sheng	Sub-subsidiary
Rih Ding Water Enterprise Co., Ltd.	Sub-subsidiary
Ji Sheng Zih Chan Development Co., Ltd.	Sub-subsidiary
Jing-Jan Retail Business Co., Ltd. (Jing-Jan)	Sub-subsidiary
Jing-Jan Digital Square Co., Ltd.	Sub-subsidiary
Prit Biotech Co., Ltd. (Prit)	Sub-subsidiary
Jing-Yang Apartment Building Management and Maintenance
Co., Ltd.	Associate
Radium Foundation	Substantive related party
Lin Rong Shian	Substantive related party
Golden Century Co., Ltd.	Substantive related party
Ri-Jun Investment Co., Ltd.	Substantive related party
Jun-An Construction Development Co., Ltd.	Substantive related party
Changxin Investment Development Co., Ltd.	Substantive related party
Lee White Corporation	Substantive related party
Chic Stuff Incorporated	Substantive related party

• 49 -

==> picture [412 x 24] intentionally omitted <==

----- Start of picture text -----

Relationship with the
Related party name Company
----- End of picture text -----

Related party name	Relationship with the Company
Ding-Sheng Digital Life Co., Ltd.	Substantive related party
Jin-Hua-Tai Investment Co., Ltd.	Substantive related party
K. C. Chou	Substantive related party
Shen Ching-Peng	Substantive related party
Liu Yao-Kai	Substantive related party
Liu Wen-Chi	Substantive related party
An Ke-Chieh	Substantive related party
An Ching-I	Substantive related party
Liu Chia-Chun	Substantive related party
You Wan Yin	Substantive related party

• (II) Related party transaction

• Property under development - outsourcing of projects and property under construction

2023

==> picture [398 x 106] intentionally omitted <==

----- Start of picture text -----

Amount paid in the
Related party category/name Nature of project current period
Titan Construction project $ 1,064,572
2022
Amount paid in the
Related party category/name Nature of project current period
Titan Construction project $ 588,734
----- End of picture text -----

2. Contract liabilities

As of December 31, 2023 and 2022, the total contract price (including tax) of the property sold by the Company to the substantive related parties was NT$39,125 thousand and NT$47,820, respectively. The contract liabilities (before tax) as of December 31, 2023 and 2022 were NT$11,724 thousand and NT$13,325 thousand, respectively. Compared with general non-related party transactions, there is no significant difference in the sales between the Company and its related parties.

1. Consultant fee income (shown as other income)

==> picture [398 x 93] intentionally omitted <==

----- Start of picture text -----

Related party category/name 2023 2022
Bao-Ding $ 9,245 $ 4,703
Titan 8,818 7,405
Ji-Shun 6,554 9,613
Ding-Sheng 5,423 4,856
Subsidiaries 9,651 9,020
Sub-subsidiary 5,515 6,281
$ 45,206 $ 41,878
----- End of picture text -----

1. Operating expenses - property management and consultancy services

==> picture [398 x 63] intentionally omitted <==

----- Start of picture text -----

Related party category/name 2023 2022
Ji-Shun $ 18,900 $ 16,920
Subsidiaries 4,375 4,157
Associate 5 5
$ 23,280 $ 21,082
----- End of picture text -----

• 50 -

• Operating expenses - donation

==> picture [398 x 85] intentionally omitted <==

----- Start of picture text -----

Related party category/name 2023 2022
Substantive related party $ 5,182 $ 4,800
6. Operating expenses - rent expense
Related party category/name 2023 2022
Sub-subsidiary $ 107 $ 128
----- End of picture text -----

1. Operating expenses - rent expense

7. Operating expenses - entertainment expense

Related party category/name Subsidiaries Sub-subsidiary		2023 $ 2,501 778 $ 3,279		2022
				$ 2,426 828 $ 3,254

1. Other income and deferred credits - gains between associates

2023

2023
Item Project management income Revenue from payment and collection services Gains on disposals of investment property	Related party category/name Wan-Da-Tong Wan-Da-Tong Jing-Jan Retail		Amount $ 322,000 2,111 1,125,329 $ 1,449,440	Realized gains (losses) for the year $ 4,923 32 ( 2,163) ($ 2,792)		Unrealized gains $ 148,090 972 1,131,928 $ 1,280,990	Basis for recognition of unrealized gains
							Sales rate and progress of T9 project Sales rate and progress of T9 project Disposal of shopping mall in MEHAS Project

2022

2022
Item Project management income Revenue from payment and collection services Gains on disposals of investment property	Related party category/name Wan-Da-Tong Wan-Da-Tong Jing-Jan Retail		Amount $ 322,000 2,111 1,125,329 $ 1,449,440	Realized gains (losses) for the year $ 4,923 32 ( 2,219) $ 2,736		Unrealized gains $ 153,013 1,004 1,129,765 $ 1,283,782	Basis for recognition of unrealized gains
				(			Sales rate and progress of T9 project Sales rate and progress of T9 project Disposal of shopping mall in MEHAS Project

9. Trade receivables from related parties

Related party category/name KaGaYa	December 31, 2023 $ 13,166	December 31, 2022 $ 14,448

10. Other receivables from related parties

==> picture [398 x 107] intentionally omitted <==

----- Start of picture text -----

Related party category/name December 31, 2023 December 31, 2022
Titan $ 3,786 $ 24
Ji-Shun 2,928 -
Ding-Sheng 1,980 840
Bao-Ding 1,569 4,703
Subsidiaries 2,622 63
-
Sub-subsidiary 1,644
$ 14,529 $ 5,630
----- End of picture text -----

• 51 -

• Trade payables to related parties

==> picture [398 x 218] intentionally omitted <==

----- Start of picture text -----

Related party category/name December 31, 2023 December 31, 2022
Titan $ 515,161 $ 367,510
12. Other payables to related parties (excluding borrowings from related parties)
Related party category/name December 31, 2023 December 31, 2022
Subsidiaries $ 292 $ 456
Sub-subsidiary 1,118 1,363
Associate 99 426
$ 1,509 $ 2,245
Related party
Account title category/name December 31, 2023 December 31, 2022
Lease liabilities Subsidiaries $ - $ 10,444
Substantive related - 419
party
$ - $ 10,863
----- End of picture text -----

1. Other payables to related parties (excluding borrowings from related parties)

2. Lease-in arrangements

Related party category/name Interest expenses Substantive related party		2023 $ 3		2022
				$ 24

1. Lease-out arrangements

Assets leased under operating leases

Related party category/name KaGaYa Subsidiaries Sub-subsidiary Substantive related party		2023	2023	% of the account balance 40 1 1 - 42		2022	2022
		Amount $ 73,167 2,411 1,622 857 $ 78,057				Amount $ 74,448 2,223 1,841 857 $ 79,369		% of the account balance
								48 2 1 - 51

Compared with general non-related party transactions, there is no significant difference in the lease transactions between the Company and its related parties.

15. Others

(1) As of December 31, 2023 and 2022, the related parties provided the assets below as collateral for the Company’s loans and guarantees:

Related party category/name December 31, 2023 December 31, 2022 Substantive related party Certificates of deposit None and securities Lin Rong Shian et al. Subsidiaries Buildings and land in Buildings and land in Beitou District, Beitou District, Taipei City, and Taipei City, and securities securities

• 52 -

• (2) The Company applied to banks for borrowings, short-term bills payable, and performance guarantee, with subsidiaries and substantive related party Rong Shian Lin et al. as the joint guarantors.

• (3) As of December 31, 2023, KaGaYa issued a guarantee note of NT$60,000 thousand for leasing a hot spring hotel from the Company.

• (III) Borrowings from related parties (recognized in other payables - related parties)

==> picture [412 x 278] intentionally omitted <==

----- Start of picture text -----

Related party category/name December 31, 2023 December 31, 2022
Wan-Da-Tong $ 1,020,000 $ 480,000
Jing-Jan Hldg 410,000 440,000
Rih-Siang 380,000 290,000
Titan 370,000 190,000
Subsidiaries - 150,000
-
Sub-subsidiary 70,000
$ 2,180,000 $ 1,620,000
Related party category/name 2023 2022
Interest expenses
Wan-Da-Tong $ 39,867 $ 3,602
Titan 16,499 11,518
Rih-Siang 9,971 4,002
-
Jing-Jan Retail 8,913
Jing-Jan Hldg 6,765 4,334
Ji-Shun 1,863 4,263
Subsidiaries 1,598 797
Sub-subsidiary 1,023 274
$ 86,499 $ 28,790
----- End of picture text -----

The borrowing interest rate of the Company's borrowings from related parties is equivalent to the market interest rate. All borrowings from related parties are unsecured ones.

• (IV) Endorsements and guarantees

Endorsements and guarantees provided by the Company

==> picture [412 x 107] intentionally omitted <==

----- Start of picture text -----

Related party category/name December 31, 2023 December 31, 2022
Subsidiaries
Amount of guarantees $ 13,519,065 $ 11,938,865
Actual amount borrowed $ 13,519,065 $ 11,938,865
Sub-subsidiary
Amount of guarantees $ 8,817,000 $ 9,820,000
Actual amount borrowed $ 8,817,000 $ 9,820,000
----- End of picture text -----

• 53 -

Endorsement s and Guarantees given by related parties

==> picture [412 x 108] intentionally omitted <==

----- Start of picture text -----

Related party category/name December 31, 2023 December 31, 2022
Subsidiaries
Amount of guarantees $ 4,017,000 $ 3,387,000
Actual amount borrowed $ 4,017,000 $ 3,387,000
Sub-subsidiary
Amount of guarantees $ 230,000 $ -
Actual amount borrowed $ - $ -
----- End of picture text -----

(V) Remuneration of key management personnel

The remuneration of directors and other key management personnel in 2023 and 2022 is as follows:

follows:
Short-term employee benefits Post-employment benefits Total		2023 $ 56,187 1,241 $ 57,428		2022
				$ 59,770 1,194 $ 60,964

The remuneration of directors and key management personnel is proposed by the remuneration committee in accordance with individual performance and the Company’s profitability, and then submitted to the board of directors for discussion and decision. For detailed information on the total remuneration paid to the above-mentioned key management personnel, please refer to the annual report of the shareholders’ meeting.

29. Pledged and mortgaged assets

The assets below have been provided as collateral for the escrow, bank loans, bonds payable, and short-term bills payable:

short-term bills payable:
Financial assets at amortized cost - current Financial assets at amortized cost -non- current Buildings and land held for sale Property to be developed Property under development Investment properties Property, plant and equipment Investments accounted for using equity method	December 31, 2023 $ 523,358 1,683,662 3,206,223 326,518 3,035,130 5,961,504 92,390 7,024,691 $ 21,853,476	December 31, 2022
			$ 503,652 1,996,881 4,376,422 316,757 1,861,344 5,943,888 94,946 7,675,722 $ 22,769,612

30. Significant commitments and contingencies

Except for other notes, the significant commitments and contingencies of the Company at the end of the reporting period are as follows:

• 54 -

• (I) In December 2001, RADIUM signed an Investment Agreement of the Xindian Depot Joint Development, Xindian Line (MRT) with the Taipei City Government. Both parties discussed matters related to the joint development (Mehas Project) at the Xindian factory base of the Xindian Line of the MRT system. It was agreed that the Taipei City Government and other landlords would provide the land, and RADIUM would invest in the construction of residential buildings, offices, and shopping malls. As of December 31, 2023 and 2022, the amount of the performance bond paid by the Company using certificates of time deposits was both NT$40,280 thousand.

• (II) The Company won the bid for the “District 1 and District 2 Land Tender for Fu-Jou Affordable Housing Project Investment Plan” in September 2011. As of December 31, 2023 and 2022, the amount of the performance bond paid by the Company's using certificates of time deposits was both NT$29,877 thousand.

• Some of the buyers of the Company’s first-floor units of the Fu-Jou Affordable Housing Project

• in Banciao filed a lawsuit for the termination of the sale and purchase contract. The Company has reached a settlement with most of the buyers who filed a lawsuit. There is currently only one lawsuit (one buyer) filed by the plaintiff, and it has been under trial in the High Court. Some of the buyers filed lawsuits claiming the Company was late in notifying the date of the house handover and requested interest. At present, only one lawsuit is under trial in the Supreme Court.

• (III) The Company and Ji-Shun and the Taichung City Government signed the” The Land Investment Development Project of WuRi WenXin BeiTun Line G6 and G8a Station of TaiChung Mass Rapid Transit Systems” in December 2020. As of December 31, 2023 and 2022 the Company has paid the performance bond for the Taichung City Government Wenxin Chongde Station (G6) and Wenxin Yinghua Station (G8a) project in the amount of NT$5,165 thousand and NT$4,087 thousand, respectively.

• (IV) The Company entered into a Commissioning Contract for New Urban Renewal Project Executor for 25 lots (formerly 28 lots) of land at 2 sections of Gongyuan Section, Zhongzheng District, Taipei City with Cathay United Bank in May 2021. The allocation of related rights and interests of the entire project are handled by means of a rights exchange in accordance with the Urban Renewal Act. As of December 31, 2023 and 2022, the performance guaranties issued by the bank as the Company’s performance bonds were both NT$60,000 thousand.

• (V) The Company and Ji-Shun and the Taichung City Government signed the” The Land Investment Development Project of WuRi WenXin BeiTun Line Station NanTun Station (G11) of Taichung Mass Rapid Transit Systems” in September 2021. As of December 31, 2023 and 2022, the amount of the performance bond paid by the Company using certificates of time deposits was both NT$7,042 thousand.

• (VI) As of December 31, 2023 and 2022, the Company entered into a construction contract with a number of vendors for the construction of buildings. The total contract price and paid amount are as follows:

Total contract price Payments already made (Note)	December 31, 2023 $ 3,354,117 1,850,469	December 31, 2022
		$ 2,258,943 749,378

Note: Recorded as property under development.

• 55 -

31. Significant Subsequent Events

With the resolution adopted by the Board of Directors on November 28, 2023 and the approval of JinGuan-Zheng-Fa-Zi No. 1120364959 issued by the Financial Supervisory Commission on December 27, 2023, the Company issued 75,000 thousand ordinary shares with a par value of NT$ 10 through cash capital increase on 2024. The proceeds from issuance of new shares, totaling NT$ 652,500 thousand, were fully received on March 4, 2024, the record date of capital increase .

32. Capital management

The Company must maintain a large amount of capital to meet the needs for new construction projects and other relevant projects. Therefore, the Company’s capital management aims to ensure that it has the necessary financial resources and operating plans to support the needs for working capital, capital expenditures, debt repayment, and dividend payments required for the next operating cycle.

In order to meet the capital needs during the construction period, the Company responds to the needs with loans from financial institutions and its own funds, resulting in a debt ratio that is relatively higher than the general industry level. However, after the completion of the construction project, handover of the project, and repayment of loans from financial institutions, the debt ratio will decrease significantly. In order to avoid the potential market risk arising from the Company's over-reliance on the borrowings from financial institutions, and to appropriately control the Company's interest expenses, the Company will use financing devices in the capital market in a timely manner to adjust the debt ratio and the proportions of the capital structure.

33. Financial instruments

(I) Fair value—financial instruments not at fair value

The Company’s management believes that the carrying amount of the Company’s financial assets and liabilities measured not at fair value is close to their fair value.

• (II) Fair value—financial instruments at fair value on a recurring basis

• Fair value hierarchy

December 31, 2023

December 31, 2023
Financial assets at FVTPL Fund beneficiary certificates Financial assets at FVTOCI Investment in equity instruments - Domestic unlisted shares December 31, 2022 Financial assets at FVTPL Fund beneficiary certificates		Level 1		Level 2		Level 3		Total
		$ 8,101 $ - Level 1		$ - $ - Level 2		$ - $ 5,100 Level 3		$ 8,101 $ 5,100 Total
		$ 7,841		$ -		$ -		$ 7,841

(Continued)

• 56 -

==> picture [382 x 11] intentionally omitted <==

----- Start of picture text -----

Level 1 Level 2 Level 3 Total
----- End of picture text -----

Financial assets at FVTPL Fund beneficiary certificates Financial assets at FVTOCI Investment in equity instruments - Domestic unlisted shares	$ 7,841 $ -	$ - $ -	$ - $ 5,100	$ 7,841 $ 5,100

There were no transfers between Level 1 and Level 2 fair value measurements in 2023 and 2022.

1. Valuation techniques and inputs applied for Level 3 fair value measurement

Domestic unlisted equity investment is based on the asset method to evaluate the total value of individual assets and individual liabilities covered by the target in the valuation to reflect the overall value of a company or business. Significant unobservable inputs include liquidity discounts. When these unobservable inputs decrease, the fair value of such investments will increase.

(III) Categories of financial instruments

Categories of financial instruments
Financial assets Financial assets at FVTPL Mandatorily at FVTPL Financial assets at amortized cost (Note 1) Financial assets at FVTOCI Investment in equity instruments Financial liabilities Guarantee deposits received (Note 2) Financial liabilities at amortized cost (Note 3)	December 31, 2023 $ 8,101 2,658,131 5,100 19,375 23,816,484	December 31, 2022
		$ 7,841 2,842,883 5,100 22,216 23,645,505

Note 1: The balances include financial assets measured at amortized cost, which comprise cash and cash equivalents, notes receivable, trade receivables, other receivables, and refundable deposits.

Note 2: The balances include guarantee deposits received recognized in other current liabilities and non-current liabilities.

Note 3: The balances include financial liabilities measured at amortized cost, which comprise shortterm borrowings, short-term bills payable, notes payable, trade payables, other payables, long-term borrowings maturing within one year or one business cycle, bonds maturing or exercising buyback rights within one year or one business cycle, bonds payable, and longterm borrowings.

• 57 -

(IV) Financial risk management objective and policies

The Company's main financial instruments include investments in equity and debt instruments, trade receivables, accounts payable, bonds payable, and borrowings. The Company's financial management department provides services to various business units, coordinates the operations in the domestic and international financial markets, and supervises and manages the financial risks related to the Company's operations through the internal reports on risk exposure analyses based on the degree and breadth of risks. These risks include market risk, credit risk, and liquidity risk.

1. Market risk

The main financial risk for the Company’s operating activities are the risk of changes in interest rates. Because the entities in the Company borrow funds at fixed and floating interest rates at the same time, leading to exposure to the interest rate risk. The Company manages interest rate risk by maintaining an appropriate combination of fixed and floating interest rates. The Company regularly evaluates hedging activities to align them with the interest rate view and established risk preferences to ensure that the most cost-effective hedging strategy is adopted.

The carrying amounts of the financial assets and financial liabilities of the Company exposed to the interest rate risk at the end of the reporting period are as follows:

Fair value interest rate risk -Financial assets -Financial liabilities Cash flow interest rate risk -Financial assets -Financial liabilities	December 31, 2023 $ 40,425 5,900,000 2,520,369 16,857,330	December 31, 2022
		$ 40,280 5,900,000 2,731,689 16,309,388

Sensitivity analysis

The sensitivity analysis below is determined based on the exposure to the interest rate risk of derivative and non-derivative instruments at the end of the year. For liabilities with floating interest rates, the analysis method is based on the assumption that the amount of liabilities outstanding at the end of the year is outstanding throughout the reporting period. The sensitivity to a 100-basis point change in interest rate is used when reporting the interest rate risk internally to the Company’s key management personnel and also represents the management’s assessment of the reasonably possible change in interest rates.

If the interest rate increased by 100 basis points and all other variables remain unchanged, the Company’s net income before tax for 2023 and 2022 would have decreased by NT$143,370 thousand and NT$135,777 thousand, respectively, mainly because of the variable interest rate of the Company’s borrowings.

The Company’s sensitivity to interest rates rose during the current period, mainly due to the increase in liabilities at variable interest rates.

• 58 -

2. Credit risk

The Company’s main potential credit risk arise from financial products, such as cash in banks, notes receivable, and trade receivables. The Company’s cash is deposited in different financial institutions, and the transaction counterparties are financial institutions with good credit ratings, so it is expected that no significant credit risk will arise. The Company controls the credit risk exposed to each financial institution, and believes that there is no significant credit risk of concentration of its bank deposit. In order to reduce the credit risk of trade receivables, the Company continuously evaluates customers’ financial position, and regularly evaluates the possibility of the recovery of trade receivables and provides allowances for bad debts, so the possibility of occurrence of the credit risk is extremely low.

1. Liquidity risk

The Company manages and maintains sufficient cash and cash equivalents to support its operations and mitigate the impact of cash flow fluctuations. The management of the Company monitors the use of the bank financing facilities and ensures compliance with the terms of the borrowing terms.

As of December 31, 2023 and 2022, the undrawn financing facilities (including financing projects) of the Company were NT$1,592,650 thousand and NT$1,891,750 thousand, respectively.

Liquidity and interest rate risk tables for non-derivative financial liabilities

The remaining contractual maturity analysis of non-derivative financial liabilities was based on the earliest date at which the Company might be required to repay and was compiled based on the undiscounted cash flows of financial liabilities (including principal and estimated interest). Therefore, the bank borrowings with a repayment on demand clause were included in the earliest time period in the table below, regardless of the probability of exercise of the right by banks. The maturity analysis of other non-derivative financial liabilities was compiled in accordance with the agreed repayment date.

For interest cash flows paid at floating interest rates, the undiscounted amount of interest is derived from the yield curve at the end of year.

December 31, 2023

==> picture [382 x 16] intentionally omitted <==

----- Start of picture text -----

On demand or less
than 1 month 1–3 months 3 months to 1 year 1-5 years Over 5 years
----- End of picture text -----

$ 110,347 413 2,873,433 - $ 2,984,193	$ 68,917 469 997,658 - $ 1,067,044	$ 636,164 1,207 3,648,976 1,000,000 $ 5,286,347	$ 208,809 349 8,033,069 4,900,000 $ 13,142,227	$ - - 1,320,000 - $ 1,320,000

Further information on the analysis of lease liabilities maturity is as follows:

Lease liabilities		Less than 1 Year $ 2,089		1-5 years $ 349		5-10 years $ -		10-15 years $ -		15-20 years $ -		Over 20 years $ -

(Continued)

• 59 -

December 31, 2022

==> picture [382 x 141] intentionally omitted <==

----- Start of picture text -----

On demand or less
than 1 month 1–3 months 3 months to 1 year 1-5 years Over 5 years
Non-derivative financial
liabilities
Non-interest-bearing
liabilities $ 208,441 $ 437,863 $ 655,794 $ 96,165 $ 968
Lease liabilities 9,745 18,079 51,721 1,823 -
Floating interest rate
instruments 650,204 1,965,622 7,596,250 6,060,903 49,794
Fixed interest rate
instruments - - - 5,900,000 -
$ 868,390 $ 2,421,564 $ 8,303,765 $ 12,058,891 $ 50,762
Further information on the analysis of lease liabilities maturity is as follows:
Less than 1 Year 1-5 years 5-10 years 10-15 years 15-20 years Over 20 years
Lease liabilities $ 79,545 $ 1,823 $ - $ - $ - $ -
----- End of picture text -----

Further information on the analysis of lease liabilities maturity is as follows:

34. Additional disclosures

• (I) Information on significant transactions in the current year and (II) Information on investees:

• Financing provided to others: Table 1.

• Endorsements/Guarantees provided: Table 2.

• Marketable securities held at the end of period: Table 3.

• Marketable securities acquired or disposed of at costs or prices at least NT$300 million or 20% of the paid-in capital: Table 4.

• Acquisition of individual real estate at costs of at least NT$300 million or 20% of the paid-in capital: None.

• Disposal of individual real estate at costs of at least NT$300 million or 20% of the paid-in capital: None.

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

• Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital: Table 6.

• Trading in derivative instruments: None.

• Information on investees: Table 7

• (III) Information on investments in Mainland China

• Information on any investee in mainland China, showing the name, principal business activities, paid-in capital, method of investment, inward and outward remittance of funds, ownership percentage, current income or loss and investment income or loss recognized, carrying amount of the investment at the end of the period, repatriations of investment income, and limit on the amount of investment in the mainland China area: Table 8.

• Any of the following significant transactions with investees in mainland China, either directly or indirectly through a third party, and their prices, payment terms, and unrealized gains or losses: None.

• (IV) Information on major shareholders

• List of all shareholders with ownership of 5 percent or greater showing the names and the number of shares and percentage of ownership held by each shareholder: Table 9.

• 60 -

Table 1

Radium Life Tech Co., Ltd. and Investees

Financing Provided to Others For the Year ended December 31, 2023

(In Thousands of New Taiwan Dollars)

==> picture [1079 x 597] intentionally omitted <==

----- Start of picture text -----

Highest Actual Business Reasons for Allowance for Collateral Financing Aggregate
Financial Statement Related Ending Nature of Limit for Each
No. Lender Borrower Balance for the Amount Interest Rate Transaction Short-term Impairment Financing
Account Party Period Balance Borrowed Financing Amount Financing Loss Item Value Borrower Limit (Note 1)
(Note 1)
1 Titan Development Radium Life Tech Other receivables from Yes $ 550,000 $ 550,000 $ 370,000 4.8790%~5.4820% Short-term $ - Operating $ - None $ - $ 801,427 $ 801,427
and Construction Co., Ltd. related parties financing capital
Co., Ltd.
1 Titan Development Li Chiang Other receivables from Yes 100,000 - - 4.8790%~5.4820% Short-term - Operating - None - 801,427 801,427
and Construction Development related parties financing capital
Co., Ltd. Co., Ltd.
1 Titan Development Rih Yao Other receivables from Yes 100,000 - - 4.8790%~5.4820% Short-term - Operating - None - 801,427 801,427
and Construction Development related parties financing capital
Co., Ltd. Co., Ltd.
2 Radium Far East Radium Life Tech Other receivables from Yes 70,000 - - 2.9380%~3.8180% Short-term - Operating - None - 154,695 154,695
Co., Ltd. Co., Ltd. related parties financing capital
2 Radium Far East Zhao Yao Other receivables from Yes 70,000 70,000 70,000 3.8180%~3.8280% Short-term - Operating - None - 154,695 154,695
Co., Ltd. Enterprise Co., related parties financing capital
Ltd.
2 Radium Far East Ji Shun Life Tech Other receivables from Yes 20,000 20,000 20,000 3.8280% Short-term - Operating - None - 154,695 154,695
Co., Ltd. Co., Ltd. related parties financing capital
3 Jing-Jan Investment Radium Life Tech Other receivables from Yes 810,000 410,000 410,000 1.2000%~1.5750% Short-term - Operating - None - 2,354,113 2,354,113
Holdings Co., Co., Ltd. related parties financing capital
Ltd.
3 Jing-Jan Investment Wan Da Tong Other receivables from Yes 120,000 - - 1.3250%~1.5750% Short-term - Operating - None - 2,354,113 2,354,113
Holdings Co., Enterprise Co., related parties financing capital
Ltd. Ltd.
3 Jing-Jan Investment Ji Shun Life Tech Other receivables from Yes 30,000 30,000 30,000 1.5750% Short-term - Operating - None - 2,354,113 2,354,113
Holdings Co., Co., Ltd. related parties financing capital
Ltd.
4 Rih Siang Property Rih Yao Other receivables from Yes 90,000 - - 2.3233%~2.9897% Short-term - Operating - None - 749,383 749,383
Management Co., Development related parties financing capital
Ltd. Co., Ltd.
4 Rih Siang Property Radium Life Tech Other receivables from Yes 520,000 380,000 380,000 2.3233%~3.1219% Short-term - Operating - None - 749,383 749,383
Management Co., Co., Ltd. related parties financing capital
Ltd.
4 Rih Siang Property Zhao Yao Other receivables from Yes 100,000 - - 2.3233%~3.1219% Short-term - Operating - None - 749,383 749,383
Management Co., Enterprise Co., related parties financing capital
Ltd. Ltd.
5 Ji Sheng Zih Chan Rih Zuan Green Other receivables from Yes 10,000 - - 1.0350%~1.5750% Short-term - Operating - None - 32,262 32,262
Development Energy related parties financing capital
Co., Ltd. Technology Co.,
Ltd.
5 Ji Sheng Zih Chan Rih Yao Other receivables from Yes 20,000 20,000 20,000 1.5750% Short-term - Operating - None - 32,262 32,262
Development Development related parties financing capital
Co., Ltd. Co., Ltd.
6 PritBiotech Co., Radium Life Tech Other receivables from Yes 50,000 50,000 - 1.7000%~2.0750% Short-term - Operating - None - 52,847 52,847
Ltd. Co., Ltd. related parties financing capital
7 Ji Shun Life Tech Radium Life Tech Other receivables from Yes 200,000 80,000 - 4.6840%~5.7070% Short-term - Operating - None - 344,572 344,572
Co., Ltd. Co., Ltd. related parties financing capital
7 Ji Shun Life Tech Rih Yao Other receivables from Yes 80,000 - - 4.6840%~5.5320% Short-term - Operating - None - 344,572 344,572
Co., Ltd. Development related parties financing capital
Co., Ltd.
----- End of picture text -----

• 61 -

==> picture [1079 x 450] intentionally omitted <==

----- Start of picture text -----

Highest Actual Business Reasons for Allowance for Collateral Financing Aggregate
Financial Statement Related Ending Nature of Limit for Each
No. Lender Borrower Balance for the Amount Interest Rate Transaction Short-term Impairment Financing
Account Party Balance Financing Borrower
Period Borrowed Amount Financing Loss Item Value Limit (Note 1)
(Note 1)
8 Wan Da Tong Radium Life Tech Other receivables from Yes $ 1,370,000 $ 1,360,000 $ 1,020,000 4.7530%~5.7070% Short-term $ - Operating $ - None $ - $ 2,539,935 $ 2,539,935
Enterprise Co., Co., Ltd. related parties financing capital
Ltd.
8 Wan Da Tong Rih Zuan Green Other receivables from Yes 10,000 10,000 10,000 5.3750%~5.7070% Short-term - Operating - None - 2,539,935 2,539,935
Enterprise Co., Energy related parties financing capital
Ltd. Technology Co.,
Ltd.
8 Wan Da Tong Rih Yao Other receivables from Yes 100,000 100,000 100,000 5.3750%~5.7070% Short-term - Operating - None - 2,539,935 2,539,935
Enterprise Co., Development related parties financing capital
Ltd. Co., Ltd.
8 Wan Da Tong Li Chiang Other receivables from Yes 250,000 250,000 220,000 5.3750%~5.7070% Short-term - Operating - None - 2,539,935 2,539,935
Enterprise Co., Development related parties financing capital
Ltd. Co., Ltd.
8 Wan Da Tong Rih Ding Circular Other receivables from Yes 650,000 50,000 - 5.3750%~5.7070% Short-term - Operating - None - 2,539,935 2,539,935
Enterprise Co., Economy related parties financing capital
Ltd. Investment
Holding Co.,
Ltd.
8 Wan Da Tong Ji Shun Life Tech Other receivables from Yes 50,000 50,000 50,000 5.3750%~5.7070% Short-term - Operating - None - 2,539,935 2,539,935
Enterprise Co., Co., Ltd. related parties financing capital
Ltd.
9 Ding Sheng Green Radium Life Tech Other receivables from Yes 20,000 - - 1.2000%~2.7847% Short-term - Operating - None - 112,412 112,412
Energy Co., Ltd. related parties financing capital
Technology Co.,
Ltd.
9 Ding Sheng Green Ji Shun Life Tech Other receivables from Yes 90,000 90,000 90,000 2.7854% Short-term - Operating - None - 112,412 112,412
Energy Co., Ltd. related parties financing capital
Technology Co.,
Ltd.
10 Radium-Kagaya Rih Yao Other receivables from Yes 40,000 40,000 40,000 2.4107%~2.5428% Short-term - Operating - None - 72,163 72,163
International Development related parties financing capital
Hotel Co., Ltd. Co., Ltd.
11 Jing-Jan Retail Radium Life Tech Other receivables from Yes 350,000 - - 2.4750%~3.4150% Short-term - Operating - None - 475,492 475,492
Business Co., Co., Ltd. related parties financing capital
Ltd.
----- End of picture text -----

Note 1: The Company’s and its subsidiaries’ cumulative balance of financing provided and the total amount of financing provided to the same borrower shall not exceed 40% of the net worth of each company as stated in most recent financial statements verified by CPAs.

• 62 -

Table 2

Radium Life Tech Co., Ltd. and Investees

Endorsements and guarantees provided by the Company For the Year ended December 31, 2023

(In Thousands of New Taiwan Dollars)

==> picture [1079 x 491] intentionally omitted <==

----- Start of picture text -----

Endorsee/Guarantee Endorsement/ Endorsement/ Endorsement/
Ratio of Accumulated Guarantee Guarantee Guarantee
Limit on Outstanding
Maximum Amount Amount Endorsement/Guarant Aggregate Given by Given by Given on
Endorsement/Guarant Endorsement/Guarant Actual Amount
No. Endorser/Guarantor Endorsed/Guaranteed Endorsed/Guaranteed ee to Net Equity in Endorsement/Guarant Parent on Subsidiaries Behalf of
Company name Relationship ee Given on Behalf of During the Period ee at the End of the Borrowed by Collateral Latest Financial ee Limit (Note 2) Behalf of on Behalf of Companies in
Each Party (Note 1) Period
Statements (%) Subsidiaries Parent Mainland
China
0 Radium Life Tech Co., Ltd. Titan Development and Subsidiary in which at least $ 32,370,207 $ 1,360,200 $ 1,260,200 $ 1,260,200 $ 300,000 11.68% $ 64,740,414 Y N N
Construction Co., Ltd. 50% of equity is held
0 Radium Life Tech Co., Ltd. Rih Yao Development Co., Ltd. [Subsidiary in which at least ] 32,370,207 904,250 904,250 904,250 - 8.38% 64,740,414 Y N N
50% of equity is held
0 Radium Life Tech Co., Ltd. Rih Ding Water Enterprise Co., Sub-subsidiary in which at 32,370,207 9,820,000 8,817,000 8,817,000 - 81.71% 64,740,414 Y N N
Ltd. least 50% of equity is held
0 Radium Life Tech Co., Ltd. Rih Siang Property Management Subsidiary in which at least 32,370,207 1,826,000 1,634,000 1,634,000 - 15.14% 64,740,414 Y N N
Co., Ltd. 50% of equity is held
0 Radium Life Tech Co., Ltd. Subsidiary in which at least 32,370,207 1,836,000 1,776,000 1,776,000 - 16.46% 64,740,414 Y N N
Zhao Yao Enterprise Co., Ltd.
50% of equity is held
0 Radium Life Tech Co., Ltd. Subsidiary in which at least 32,370,207 83,265 83,265 83,265 - 0.77% 64,740,414 Y N N
Ji Shun Life Tech Co., Ltd.
50% of equity is held
0 Radium Life Tech Co., Ltd. Radium-Kagaya International Subsidiary in which at least 32,370,207 50,000 50,000 50,000 - 0.46% 64,740,414 Y N N
Hotel Co., Ltd. 50% of equity is held
0 Radium Life Tech Co., Ltd. Rih Ding Circular Economy Subsidiary in which at least 32,370,207 652,000 652,000 652,000 - 6.04% 64,740,414 Y N N
Investment Holding Co., Ltd. 50% of equity is held
0 Radium Life Tech Co., Ltd. Subsidiary in which at least 32,370,207 1,456,250 1,456,250 1,456,250 310,000 13.50% 64,740,414 Y N N
Wan Da Tong Enterprise Co.,
50% of consolidated equity
Ltd.
is held
0 Radium Life Tech Co., Ltd. Rih Zuan Green Energy Subsidiary in which at least 32,370,207 47,700 47,700 47,700 - 0.44% 64,740,414 Y N N
Technology Co., Ltd. 50% of equity is held
0 Radium Life Tech Co., Ltd. Subsidiary in which at least 32,370,207 5,053,300 4,043,900 4,043,900 - 37.48% 64,740,414 Y N N
Jing Ding Green Energy
50% of consolidated equity
Technology Co., Ltd.
is held
0 Radium Life Tech Co., Ltd. Bao Ding Reclaimed Water Co., Subsidiary in which at least 32,370,207 1,831,500 1,611,500 1,611,500 - 14.94% 64,740,414 Y N N
Ltd. 50% of equity is held
1 Ji Shun Life Tech Co., Ltd. Ji Sheng Zih Chan Development Subsidiary in which at least 2,584,294 183,500 49,500 49,500 80,783 5.75% 5,168,587 N N N
Co., Ltd. 50% of equity is held
2 Titan Development and Radium Life Tech Co., Ltd. Parent company in which at 6,010,704 777,000 777,000 777,000 777,000 38.78% 12,021,408 N Y N
Construction Co., Ltd. least 50% of equity is held
3 Jing-Jan Investment Holdings Co., Radium Life Tech Co., Ltd. Parent company in which at 17,655,848 2,910,000 2,910,000 2,910,000 2,910,000 49.45% 35,311,695 N Y N
Ltd. least 50% of equity is held
4 Rih Ding Circular Economy Bao Ding Reclaimed Water Co., The company is guaranteed 22,148,014 499,500 439,500 439,500 - 5.95% 44,296,027 N N N
Investment Holding Co., Ltd. Ltd. by all shareholders
according to their
shareholding ratios as a
result of joint investment.
4 Rih Ding Circular Economy Radium Life Tech Co., Ltd. Parent company in which at 22,148,014 280,000 280,000 280,000 280,000 3.79% 44,296,027 N Y N
Investment Holding Co., Ltd. least 50% of equity is held
5 Ding Sheng Green Energy Radium Life Tech Co., Ltd. Parent company in which at 843,087 230,000 230,000 - - 81.84% 1,686,175 N Y N
Technology Co., Ltd. least 50% of equity is held
6 Radium-Kagaya International Radium Life Tech Co., Ltd. Parent company in which at 541,222 50,000 50,000 50,000 50,000 27.72% 1,082,444 N Y N
Hotel Co., Ltd. least 50% of equity is held
----- End of picture text -----

Note 1: The amount of the Company's or its subsidiaries' endorsements/guarantees to a single enterprise is limited to 3 times the net worth of each company as stated in most recent financial statements verified by CPAs. Note 2: The total amount of endorsements/guarantees by the Company or its subsidiaries is limited to not more than 6 times the net worth of each company as stated in most recent financial statements verified by CPAs.

• 63 -

Table 3

Radium Life Tech Co., Ltd. and Investees

Marketable Securities Held

December 31, 2023

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

==> picture [1036 x 406] intentionally omitted <==

----- Start of picture text -----

Ending Balance
Relationship with the Holding
Holding Company Name Type and Name of Marketable Securities Financial Statement Account Number of Shares or Percentage of Fair Value Note
Company Carrying Amount
Units (in Thousands) Ownership (%)
Radium Life Tech Co., Ltd. Stock
Linkou Recreation Enterprise Co., Ltd. None Financial assets at FVTOCI - - $ 5,100 - $ 5,100
Non-current
Titan Development and Stock
Construction Co., Ltd. Xantia Corporation None Financial assets at FVTOCI - 55 - 0.07% -
Non-current
PritBiotech Co., Ltd. Stock
Tsinghua Life Technology Co., Ltd. None Financial assets at FVTOCI - 3 131 2.50% 131
Non-current
PritBiotech Co., Ltd. Stock
Deyang Biotechnology Venture Capital Co., None Financial assets at FVTOCI - 77 987 3.70% 987
Ltd. Non-current
PritBiotech Co., Ltd. Stock
Shih Jui Biotech Corp. Ltd. None Financial assets at FVTOCI - 50 - 16.67% -
Non-current
Radium Far East Co., Ltd. Stock
Mega Growth Venture Capital Co., Ltd. None Financial assets at FVTOCI - 2,781 26,245 3.94% 26,245
Non-current
Radium Life Tech Co., Ltd. Fund
TCB US Short Duration Non-Investment None Financial assets at FVTPL - 300 2,980 - 2,980
Grade Bond Fund current
Radium Life Tech Co., Ltd. Fund
Taishin ESG Emerging Markets Bond Fund None Financial assets at FVTPL - 300 2,549 - 2,549
current
Radium Life Tech Co., Ltd. Fund
KGI ESG Sustainable Emerging Market None Financial assets at FVTPL - 300 2,572 - 2,572
Bond Fund current
Jing-Jan Retail Business Fund
Co., Ltd. Taiwan Business Bank Eastspring None Financial assets at FVTPL - 500 4,870 - 4,870
Investments India Bond Fund current
----- End of picture text -----

Note 1: Refer to Tables 7 and 8 for the information on subsidiaries and associates.

• 64 -

Table 4

Radium Life Tech Co., Ltd. and Investees

Marketable Securities Acquired or Sold at Costs or Prices at Least NT$300 Million or 20% of the Paid-in Capital For the Year ended December 31, 2023

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Company Name	Type and Name of Marketable Securities	Financial Statement Account	Counterparty	Relationship	BeginningBalance Acquisition	Disposal	Disposal		Ot	hers EndingBalance
					Number of Shares (in Thousands) Amount Number of Shares (in Thousands) Amount Number of Shares (in Thousands)	Amount	Carrying Amount	Gains/Losses on Disposal	Number of Shares (in Thousands)	Amount Number of Shares (in Thousands) Amount
Rih Ding Circular Economy Investment Holding Co.,Ltd.	Stock Rih Ding Water Enterprise Co., Ltd.	Investments accounted for the equity method	Rih Ding Water Enterprise Co.,Ltd.	Subsidiary	570,800 $ 6,923,313 50,200 $ 592,360 (Note 2) -	$ -	$ -	$ -	-	$ 47,257 ) (Note 3) 621,000 $ 7,562,930

Note 1: The securities mentioned in this table refer to stocks, bills, beneficiary certificates, and securities derived from the items above.

Note 2: Proceeds from issuance of ordinary shares in the current period.

Note 3: Rih-Ding Hldg’s share of comprehensive income of NT$673,257 thousand and cash dividends of NT$626,000 thousand recognized under the equity method.

• 65 -

Table 5

Radium Life Tech Co., Ltd. and Investees

Total Purchases from or Sales to Related Parties Amounting to at Least NT$100 Million or 20% of the Paid-in Capital For the Year ended December 31, 2023

(In Thousands of New Taiwan Dollars)

==> picture [730 x 168] intentionally omitted <==

----- Start of picture text -----

Buyer/Seller Related Party Relationship Purchase/Sale Amount Transaction Details % of Total(Note 1) Payment Terms Unit PriceAbnormal TransactionPayment Terms EndinNote/Trade receivables g Balance (% of TotalPayable) Note
Radium Life Tech Co., Ltd. Titan Development and Parent company Construction costs $ 1,064,572 96.68% As agreed in contract - － ( $ 515,161 ) ( 96.67% )
Construction Co., Ltd.
Titan Development and Radium Life Tech Co., Ltd. Parent company Sales ( 743,234 ) ( 52.20% ) As agreed in contract - － 98,459 33.60%
Construction Co., Ltd.
Rih Ding Water Enterprise Co., Titan Development and Associate Construction costs 496,759 51.69% As agreed in contract - － ( 615,277 ) ( 76.71% )
Ltd. Construction Co., Ltd.
Titan Development and Rih Ding Water Enterprise Co., Associate Sales ( 533,072 ) ( 37.44% ) As agreed in contract - － 194,543 66.40%
Construction Co., Ltd. Ltd.
Rih Ding Water Enterprise Co., Ding Sheng Green Energy Associate Construction costs 456,949 47.54% As agreed in contract - － ( 178,437 ) ( 22.25% )
Ltd. Technology Co., Ltd.
Ding Sheng Green Energy Rih Ding Water Enterprise Co., Associate Sales ( 542,511 ) ( 93.50% ) As agreed in contract - － 170,107 100%
Technology Co., Ltd. Ltd.
Wan Da Tong Enterprise Co., Jing-Jan Retail Business Co., Ltd. Associate Sales ( 517,712 ) ( 58.80% ) As agreed in contract - － 19,415 23.10%
Ltd.
----- End of picture text -----

Note 1: Since there was no relevant identical transaction to follow for the unit price of purchases from and sales to related parties, the transaction conditions were negotiated and determined by both parties.

• 66 -

Table 6

Radium Life Tech Co., Ltd. and Investees

Receivables from Related Parties Amounting to at Least NT$100 million or 20% of the Paid-in Capital December 31, 2023

(In Thousands of New Taiwan Dollars)

==> picture [729 x 79] intentionally omitted <==

----- Start of picture text -----

Turnover Overdue Amounts Received Allowance for
Company Name Related Party Relationship Ending Balance Rate Amount Actions Taken Subsequent Period Impairment Loss Note
Jing-Jan Investment Holdings Co., Ltd. Radium Life Tech Co., Ltd. Parent company $ 410,000 - $ - － $ - $ - Up to January 31, 2024 (Note 1)
Rih Siang Property Management Co., Ltd. Radium Life Tech Co., Ltd. Parent company 380,000 - - － - - Up to January 31, 2024 (Note 1)
Titan Development and Construction Co., Ltd. Rih Ding Water Enterprise Co., Ltd. Associate 194,543 3.10 - － 94,933 - Up to January 31, 2024
Titan Development and Construction Co., Ltd. Radium Life Tech Co., Ltd. Parent company 370,000 - - － 170,000 - Up to January 31, 2024 (Note 1)
Wan Da Tong Enterprise Co., Ltd. Rih Yao Development Co., Ltd. Associate 100,000 - - － - - Up to January 31, 2024 (Note 1)
Wan Da Tong Enterprise Co., Ltd. Radium Life Tech Co., Ltd. Parent company 1,020,000 - - － - - Up to January 31, 2024 (Note 1)
Wan Da Tong Enterprise Co., Ltd. Li Chiang Development Co., Ltd. Associate 220,000 - - － - - Up to January 31, 2024
Ding Sheng Green Energy Technology Co., Ltd. Rih Ding Water Enterprise Co., Ltd. Associate 170,107 3.52 - － 107,026 - Up to January 31, 2024 (Note 1)
----- End of picture text -----

Note 1: Other receivables.

• 67 -

Table 7

Radium Life Tech Co., Ltd. and Investees

Information on Investees

For the Year ended December 31, 2023

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

==> picture [1036 x 572] intentionally omitted <==

----- Start of picture text -----

Original Investment Amount As of December 31,2022
Main Businesses and Net Income (Loss) Share of Proft
Investor Company Investee Company Location Number of Shares Percentage Note
Products December 31,2022 December 31,2021 Carrying Amount of the Investee (Loss)
(in Thousands) (%)
Radium Life Tech Co., Ji Shun Life Tech Co., Ltd. 13F, No. 209, Section 1, Civic Housing and $ 318,000 $ 318,000 70,000 100.00% $ 861,432 ($ 39,090 ) ($ 39,716) Subsidiary (Note 1)
Ltd. Boulevard, Taipei City Building
Development and
Rental
Radium Life Tech Co., Li Chiang Development 13F, No. 209, Section 1, Civic Housing and 1,000,000 1,000,000 100,000 100.00% 360,809 ( 64,602 ) ( 64,602 ) Subsidiary (Note 1)
Ltd. Co., Ltd. Boulevard, Taipei City Building
Development and
Rental
Radium Life Tech Co., Rih Yao Development Co., 13F, No. 209, Section 1, Civic Housing and 950,000 950,000 95,000 100.00% 566,273 ( 103,724 ) ( 103,724 ) Subsidiary (Note 1)
Ltd. Ltd. Boulevard, Taipei City Building
Development and
Rental
Radium Life Tech Co., Radium Far East Co., Ltd. 5F–2, No. 270, Section 4, Zhongxiao Housing and 1,113,455 1,113,455 38,773 99.93% 571,130 ( 12,020 ) ( 12,011 ) Subsidiary (Notes 1 & 2)
Ltd. East Road, Taipei City Building
Development and
Rental
Radium Life Tech Co., Titan Development and 5F–2, No. 270, Section 4, Zhongxiao Civil engineering and 968,650 968,650 120,000 100.00% 1,346,130 186,262 172,606 Subsidiary (Note 1)
Ltd. Construction Co., Ltd. East Road, Taipei City construction
Radium Life Tech Co., Wan Da Tong Enterprise 13F, No. 209, Section 1, Civic Development of the 1,248,666 1,248,666 148,000 28.35% 1,800,179 298,820 84,720 Subsidiary (Notes 1 & 3)
Ltd. Co., Ltd. Boulevard, Taipei City T9 land in the
dedicated area of
the Taipei Main
Station
Radium Life Tech Co., Radium-Kagaya No. 236, Guangming Road, Beitou Hot spring hotel 953,363 953,363 15,000 100.00% 181,792 34,739 32,387 Subsidiary (Note 1)
Ltd. International Hotel Co., District, Taipei City, Taiwan
Ltd.
Radium Life Tech Co., Zhao Yao Enterprise Co., 3F-11F. No. 23, Lane 27, Section 4, Housing and 2,350,000 2,350,000 235,000 100.00% 1,248,544 ( 88,450 ) ( 88,450 ) Subsidiary (Note 1)
Ltd. Ltd. Ren'ai Road, Daan District, Taipei Building
City; No. 25, 3F-11F. No. 25, Development and
Lane 27, Section 4, Ren'ai Road, Rental
Daan District, Taipei City; 2F-
14F. No. 237 Lane 27, Section 4,
Ren'ai Road, Daan District, Taipei
City
Radium Life Tech Co., Xin Xiu Ge Hotel Co., Ltd. No. 238, Guangming Road, Beitou Regular hotel 421,500 421,500 125 100.00% 313,261 ( 3,547 ) ( 3,547 ) Subsidiary (Note 1)
Ltd. District, Taipei City, Taiwan
Radium Life Tech Co., Jing-Jan Investment 13F, No. 209, Section 1, Civic Investment 3,039,339 3,039,339 91,590 61.06% 3,747,847 373,887 240,137 Subsidiary (Notes 1 & 6)
Ltd. Holdings Co., Ltd. Boulevard, Taipei City
Radium Life Tech Co., Rih Siang Property 14F, No. 209, Section 1, Civic Housing and 2,300,000 2,300,000 230,000 100.00% 1,873,456 ( 23,162 ) ( 23,162 ) Subsidiary (Note 1)
Ltd. Management Co., Ltd. Boulevard, Taipei City Building
Development and
Rental
Radium Life Tech Co., Rih Zuan Green Energy 14F, No. 209, Section 1, Civic Energy Technical 40,500 40,500 4,050 90.00% 44,363 1,836 1,763 Subsidiary (Note 1)
Ltd. Technology Co., Ltd. Boulevard, Taipei City Services
Radium Life Tech Co., Rih Ding Circular 14F, No. 209, Section 1, Civic Investment 6,482,810 6,444,451 78,220 100.00% 7,363,465 696,495 696,495 Subsidiary (Note 1)
Ltd. Economy Investment Boulevard, Taipei City
Holding Co., Ltd.
Radium Life Tech Co., Jing Ding Green Energy No. 80, Pinghe 1st Street, Changhua Energy Technical 229,400 229,400 22,940 37.00% 222,864 ( 14,930 ) ( 5,525 ) Subsidiary (Note 1)
Ltd. Technology Co., Ltd. City, Changhua County Services
Radium Life Tech Co., Bao Ding Reclaimed Water 2F-3, No. 138, Sec. 1, Nankan Road, Reclaimed water 495,559 275,000 47,960 55.00% 540,164 80,252 44,139 Subsidiary (Note 1)
Ltd. Co., Ltd. Luzhu District, Taoyuan City construction
project
----- End of picture text -----

(Continued)

• 68 -

==> picture [1036 x 396] intentionally omitted <==

----- Start of picture text -----

Original Investment Amount As of December 31,2022
Main Businesses and Net Income (Loss) Share of Proft
Investor Company Investee Company Location Number of Shares Percentage Note
Products December 31,2022 December 31,2021 Carrying Amount of the Investee (Loss)
(in Thousands) (%)
Titan Development and Jing-Jan Investment 13F, No. 209, Section 1, Civic Investment $ 1,832,017 $ 1,832,017 55,195 36.80% $ 2,165,784 $ 373,887 $ 137,583 Subsidiary (Notes 1 & 7)
Construction Co., Ltd. Holdings Co., Ltd. Boulevard, Taipei City
Ji Shun Life Tech Co., Ltd. Ji Sheng Zih Chan 13F, No. 209, Section 1, Civic Housing and 87,000 87,000 8,700 100.00% 80,654 ( 129 ) ( 129 ) Sub-subsidiary (Note 1)
Development Co., Ltd. Boulevard, Taipei City Building
Development and
Rental
Ji Shun Life Tech Co., Ltd. Jing-Yang Apartment 10F-1, No. 106, Section 6, Roosevelt Condominium 9,800 9,800 980 49.00% 9,305 ( 3,154 ) ( 1,546 ) (Note 1)
Building Management Road, Wenshan District, Taipei buildings
and Maintenance Co., City management
Ltd. service
Jing-Jan Investment Jing-Jan Retail Business No. 1, Section 1, Chengde Road, Shopping mall 509,201 509,201 45,001 75.00% 891,548 210,559 157,922 Sub-subsidiary (Note 1)
Holdings Co., Ltd. Co., Ltd. Taipei City business
Jing-Jan Investment Wan Da Tong Enterprise 13F, No. 209, Section 1, Civic Development of the 4,295,288 4,295,288 374,015 71.65% 4,549,658 298,820 214,101 Subsidiary (Note 1)
Holdings Co., Ltd. Co., Ltd. Boulevard, Taipei City T9 land in the
dedicated area of
the Taipei Main
Station
Jing-Jan Retail Business Jing-Jan Digital Square 4F No. 1, Section 1, Chengde Road, Retail 50,000 50,000 2,000 100.00% 23,792 3,097 3,097 Sub-subsidiary (Note 1)
Co., Ltd. Co., Ltd. Datong District, Taipei City
Radium Far East Co., Ltd. PritBiotech Co., Ltd. 3F-1, No.50, Lane 462, Gongyi Biotechnology and 90,000 90,000 9,000 37.31% 61,752 ( 7,138 ) ( 2,663 ) Sub-subsidiary (Notes 1
Road, Zhunan Town, Miaoli cosmetic & 5)
County manufacturing
Rih Ding Circular Rih Ding Water Enterprise No. 177, Section 1, Fuhua Road, Investment in and 6,233,795 5,641,435 621,000 100.00% 7,562,930 673,257 673,257 Sub-subsidiary (Note 1)
Economy Investment Co., Ltd. Luzhu District, Taoyuan City construction and
Holding Co., Ltd. operation of
public works
construction
Rih Ding Circular Ding Sheng Green Energy 14F, No. 209, Section 1, Civic Energy Technical 248,379 248,379 20,000 100.00% 281,029 26,251 26,251 Sub-subsidiary (Note 1)
Economy Investment Technology Co., Ltd. Boulevard, Taipei City Services
Holding Co., Ltd.
Rih Ding Circular Bao Ding Reclaimed Water 2F-3, No. 138, Sec. 1, Nankan Road, Reclaimed water 135,152 75,000 13,080 15.00% 147,317 80,252 12,038 Subsidiary (Note 1)
Economy Investment Co., Ltd. Luzhu District, Taoyuan City construction
Holding Co., Ltd. project
Ding Sheng Green Energy Jing Ding Green Energy No. 80, Pinghe 1st Street, Changhua Energy Technical 204,600 204,600 20,460 33.00% 198,771 ( 14,930 ) ( 4,927 ) Subsidiary (Note 1)
Technology Co., Ltd. Technology Co., Ltd. City, Changhua County Services
----- End of picture text -----

Note 1: It is calculated based on the investees’ financial statements audited by CPAs for the same period and the Company's shareholding ratio.

Note 2: The accumulated impairment of NT$130,802 thousand has not yet been deducted from the carrying amount.

Note 3: The unrealized gains between associates of NT$149,062 thousand has not yet been deducted from the carrying amount.

Note 4: Information on investees in mainland China is detailed in Table 8.

Note 5: The accumulated impairment of NT$12,460 thousand has not yet been deducted from the carrying amount.

Note 6: The unrealized gains between associates of NT$1,131,928 thousand has not yet been deducted from the carrying amount.

Note 7: The unrealized gains between associates of NT$130,446 thousand has not yet been deducted from the carrying amount.

• 69 -

Table 8

Radium Life Tech Co., Ltd. and Investees

Information on investments in Mainland China For the Year ended December 31, 2023

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

		Investee Company Main Businesses and Products Paid-In Capital Method of Investments	Accumulated Outward Remittance for Investment from Taiwan as of January 1,2022	Accumulated Outward Remittance for Investment from Taiwan as of January 1,2022	Remittance of Funds Outward Inward	Remittance of Funds Outward Inward		Accumulated Outward Remittance for Investment from Taiwan as of December31,2022	Accumulated Outward Remittance for Investment from Taiwan as of December31,2022	Net Income (Loss) of the Investee	% Ownership of Direct or Indirect Investment	Investment Gain (Loss) (Note 2)	Carrying Amount as of December31,2022	Accumulated Repatriation of Investment Income as of December31,2022
	LiJiang Business Consulting (Shanghai) Limited. Business and Corporate Management Consulting Services $ 52,288 ( US$1,700 thousand ) Note 1(1)		$ ( US$1,700	52,288 thousand )	$ -	$ -		$ 52,288 ( US$1,700 thousand)		( $ 21 )	100%	( $ 21 ) (2)B	$ 2,428	$ -
	Accumulated Outward Remittance for Investments in Mainland China as of December 31,2022 Investment Amount Authorized by the Investment Commission, MOEA			Upper Limit on the Amount of Investments Stipulated by the Investment Commission, MOEA
		NT$56,848 (US$1,840 thousand) NT$56,804 (US$1,850 thousand)			$6,474,041
		(Note 6) (Note4)			(Note 5)
Note 1:		Investment methods are divided into the following three types, just enter the code:
		(1) Direct investment in mainland China.
		(2) Indirect investment in mainland China through third-region companies.
		(3) Other methods.
Note 2:		In the field “Investment Gains/Losses Recognized for Current Period”
		(1) If it is under preparation and there is no investment gain or loss, it shall be indicated.
		(2) The recognition basis of investment gains and losses is divided into the following three types,	which shall be indicated.
		A. Financial statements audited and attested by any international accounting firms with partnership with any accounting firm of the Republic of China.
		B. Financial statements audited and attested by CPAs appointed by the parent company in Taiwan.
		C. Others.
Note 3:		The relevant figures in this table shall be presented in New Taiwan dollars.
Note 4:		The exchange rate is based on the average spot buying/selling exchange rate of the Bank of Taiwan on December 31, 2023. In addition, the limit approved by the Investment Commission is in foreign currency, and the investment amount had not exceeded the limit as of the current period.
Note 5:		It is 60% of the net equity of the Company.
Note 6:		The deregistration of Wan-Da-Tong (Xiamen) Enterprise Co., Ltd. was completed on November 22,	2019, and its registered		capital of US$140 thousand was not remitted		back to Taiwan due to losses.

• 70 -

Table 9

Radium Life Tech Co., Ltd.

Information on Major Shareholders December 31, 2023

==> picture [470 x 84] intentionally omitted <==

----- Start of picture text -----

Shares
Name of Major Shareholder Percentage of
Number of Shares
Ownership (%)
Rong Shian Lin 110,524,167 12.55%
CTBC Bank Co., Ltd. In custody for Verivia PCC 84,031,547 9.54%
Ding-Sheng Digital Life Co., Ltd. 64,611,434 7.34%
Golden Century Co., Ltd. 58,223,051 6.61%
----- End of picture text -----

• Note 1: The major shareholders in this table are shareholders holding at least 5% of the ordinary and preference shares (including treasury shares) with dematerialized registration and delivery completed on the last business day of the quarter calculated by the Taiwan Depository & Clearing Corporation. The share capital recorded in the Company's parent company only financial statements and the number of shares actually delivered by the Company with the dematerialized registration completed may differ due to different calculation bases.

• Note 2: For the information above, where a shareholder transfers the shares to a trust, the trustor’s individual account opened by the trustee shall be disclosed. As for the insider declaration of the ownership percentage over 10% in accordance with the Securities and Exchange Act, including the shares on hand and those being put in the trust, and the right to use the trust asset, please refer to the declaration information on MOPS.

• 71 -

§Table of Contents of Statements of Significant Accounting Titles§

Item Statement of Assets, Liabilities and Equity Items Statement of Cash and Cash Equivalents Statement Statement of Changes in Property Under Development Statement Statement of Other Current Assets Note 13 Statement of Investments Accounted for Using Equity Method Statement Statement of Changes in Property, Plant and Equipment Note 15 Statement of Changes in Accumulated Depreciation of Property, Plant and Equipment Note 15 Statement of Changes in Accumulated Impairment of Property, Plant and Equipment Note 15 Statement of Changes in Investment Property Note 17 Statement of Changes in Accumulated Depreciation of Investment Property Note 17 Statement of Changes in Accumulated Impairment of Investment Property Note 17 Statement of Changes in Right-of-use Assets Statement Statement of Contract Liabilities Statement Statement of Short-term Borrowings Statement Statement of Long-term Borrowings Statement Statement of Lease Liabilities Statement Statement of Profit or Loss Statement of Operating Revenue Statement Statement of Operating Costs Statement Statement of Operating Expenses Statement Statement of Labor, Depreciation, Depletion, and Amortization by Function Statement

No./Index

1 2 3 4 5 6 7 8 9 10 11 12

• 72 -

Statement 1

Radium Life Tech Co., Ltd.

Statement of Cash and Cash Equivalents

December 31, 2023

(In Thousands of New Taiwan Dollars)

==> picture [440 x 162] intentionally omitted <==

----- Start of picture text -----

Item Amount
Cash on hand $ 338
Petty cash 590
Demand deposits 265,990
Checking accounts 1,345
Foreign currency deposits 43
Total $ 268,306
----- End of picture text -----

• 73 -

Statement 2

Radium Life Tech Co., Ltd.

Statement of Changes in Property Under Development 2023

(In Thousands of New Taiwan Dollars)

Sanzhi Project - East Side Sanzhi Project - West Side	Balance at January 1,2022 $ 1,648,631 $ 212,713		Cost of Project $ 1,052,189 $ 79,069		Capitalized Interest $ 36,462 $ 6,066	Ending Balance $ 2,737,282 $ 297,848

• 74 -

Statement 3

Radium Life Tech Co., Ltd.

Statement of Changes in Investments Accounted for Using Equity Method 2023 (In Thousands of New Taiwan Dollars)

==> picture [1035 x 354] intentionally omitted <==

----- Start of picture text -----

Changes in Investments
Balance at January 1,2022 Cumulative Ending Balance
Item Number of Shares (in Amount Number of Shares (in Amount of Increase Investment Gains Translation Others (Note 1) Number of Shares (in Ownership (%) Amount Net Equity Note
Thousands) Thousands) (Decrease) (Losses) Adjustment Thousands)
Ji-Shun 70,000 $ 901,148 - $ - ( $ 39,716 ) $ - $ - 70,000 100 $ 861,432 $ 861,432
Li- Chiang 100,000 425,411 - - ( 64,602 ) - - 100,000 100 360,809 360,809
Rih-Yao 95,000 669,997 - - ( 103,724 ) - - 95,000 100 566,273 566,273
Far East 38,773 582,944 - - ( 12,011 ) - 197 38,773 99.93 571,130 386,737 Note 2
Titan 120,000 1,271,165 - ( 98,000 ) 172,606 - 359 120,000 100 1,346,130 2,003,568 Note 2
Wan-Da-Tong 148,000 1,774,998 - ( 59,539 ) 84,720 - - 148,000 28.35 1,800,179 6,349,837 Note 2
KaGaYa 15,000 149,405 - - 32,387 - - 15,000 100 181,792 180,407
Zhao-Yao 235,000 1,336,994 - - ( 88,450 ) - - 235,000 100 1,248,544 1,248,544 Note 2
Xin-Xiu-Ge 125 316,808 - - ( 3,547 ) - - 125 100 313,261 ( 14,639 )
Jing-Jan Hldg 91,590 3,646,316 - ( 138,606 ) 240,137 - - 91,590 61.06 3,747,847 5,885,283 Note 2
Rih-Siang 230,000 1,896,618 - - ( 23,162 ) - - 230,000 100 1,873,456 1,873,456
Rih-Zuan 4,050 45,120 - ( 2,520 ) 1,763 - - 4,050 90 44,363 48,528
LiJiang - 2,495 - - ( 21 ) ( 46 ) - - 100 2,428 2,428
Rih-Ding Hldg 77,800 7,280,611 420 ( 613,641 ) 696,495 - - 78,220 100 7,363,465 7,382,671 Note 2
Jing-Ding 22,940 228,389 - - ( 5,525 ) - - 22,940 37 222,864 602,336
Bao-Ding 27,500 279,151 20,460 216,874 44,139 - - 47,960 55 540,164 982,116
Total 20,807,570 ( $ 695,432 ) $ 931,489 ( $ 46 ) $ 556 21,044,137
Less: Accumulated impairment ( 130,802 ) $ - $ - $ - $ - ( 130,802 )
Less: Unrealized gain from affiliate ( 1,283,782 ) 2,792 $ - $ - $ - ( 1,280,990 )
$ 19,392,986 ( $ 692,640 ) $ 931,489 ( $ 46 ) $ 556 $ 19,632,345
----- End of picture text -----

Note 1: It is the subsidiaries’ actuarial gains of the defined benefit plans and other comprehensive income recognized by the Company.

Note 2: The collateral provided for bank loans is NT$7,024,691 thousand.

• 75 -

Statement 4

Radium Life Tech Co., Ltd.

Statement of Changes in Right-of-use Assets

2023

(In Thousands of New Taiwan Dollars)

Cost Balance at January 1, 2023 Additions Deductions Lease terminated in current period Balance at December 31, 2023 Accumulated depreciation and impairment Balance at January 1, 2023 Depreciation expenses Deductions Lease terminated in current period Balance at December 31, 2023 Net at December 31, 2022		Land $ 219 - - - $ 219 $ 16 187 - - $ 203 $ 16		Buildings $ 31,720 - 31,333 ) - $ 387 $ 20,944 10,776 31,333 ) - $ 387 $ -	Transportation Equipment $ 6,889 1,093 - ( 3,280) $ 4,702 $ 3,834 1,820 - ( 2,696) $ 2,958 $ 1,744		Total
			( (		( (	( ( ( (	$ 38,828 1,093 31,333 ) 3,280) $ 5,308 $ 24,794 12,783 31,333 ) 2,696) $ 3,548 $ 1,760

• 76 -

Statement 5

Radium Life Tech Co., Ltd. Statement of Contract Liabilities December 31, 2023 (In Thousands of New Taiwan Dollars)

==> picture [443 x 118] intentionally omitted <==

----- Start of picture text -----

Item Amount
Sanzhi Project - East Side $ 626,931
Sanzhi Project - West Side 115,706
Fu-Jou District 1 50,795
Fu-Jou District 2 5,766
$ 799,198
----- End of picture text -----

• 77 -

Statement 6

Radium Life Tech Co., Ltd.

Statement of Short-term Borrowings December 31, 2023

(In Thousands of New Taiwan Dollars)

==> picture [1035 x 206] intentionally omitted <==

----- Start of picture text -----

Types of borrowing Contract Period Interest Rate (%) Ending Balance Loan Commitments Collateral
Bank credit borrowing 2024.03.31 Note $ 60,000 $ 60,000 None
Bank collateralized borrowing 2024.06.15 Note 390,000 500,000 Please refer to Note 29
〃 2024.11.30 Note 22,582 35,806 Please refer to Note 29
〃 2024.07.05 Note 200,000 200,000 Please refer to Note 29
〃 2024.01.18 Note 170,000 300,000 Please refer to Note 29
〃 2024.09.15 Note 137,590 147,590 Please refer to Note 29
〃 2024.01.11 Note 97,600 100,000 Please refer to Note 29
〃 2024.01.11 Note 194,524 231,170 Please refer to Note 29
$ 1,272,296 $ 1,574,566
----- End of picture text -----

Note: Interest rate 1.85-3.72%.

• 78 -

Statement 7

Radium Life Tech Co., Ltd.

Statement of Long-term Borrowings December 31, 2023

(In Thousands of New Taiwan Dollars)

==> picture [987 x 289] intentionally omitted <==

----- Start of picture text -----

Creditor Summary Amount Contract Period Interest Rate Collateral Note
Yuanta Bank Collateralized borrowing $ 209,500 2026.9.26 2.750 Please refer to Note 29
Yuanta Bank Collateralized borrowing 520,000 2026.9.26 2.750 Please refer to Note 29
Yuanta Bank Collateralized borrowing 1,240,500 2026.9.26 2.750 Please refer to Note 29
Taiwan Business Bank Collateralized borrowing 256,000 2025.5.16 2.700 Please refer to Note 29
King's Town Bank Co., Ltd. Collateralized borrowing 386,928 2026.3.26 3.150 Please refer to Note 29
King's Town Bank Co., Ltd. Collateralized borrowing 254,020 2024.9.26 3.000 Please refer to Note 29
King's Town Bank Co., Ltd. Collateralized borrowing 469,770 2028.3.1 2.750 Please refer to Note 29
King's Town Bank Co., Ltd. Collateralized borrowing 2,866,350 2027.5.3 2.750 Please refer to Note 29
King's Town Bank Co., Ltd. Unsecured borrowings 216,960 2027.5.3 2.750 None
King's Town Bank Co., Ltd. Unsecured borrowings 875,000 2027.5.2 2.750 None
King's Town Bank Co., Ltd. Collateralized borrowing 457,341 2027.5.3 2.750 Please refer to Note 29
Chang Hwa Bank Collateralized borrowing 240,721 2028.4.14 2.500 Please refer to Note 29
Bank of Taiwan Collateralized borrowing 2,000,000 2029.12.26 3.023 Please refer to Note 29 Note 1
International Bills Finance Corporation Collateralized borrowing 45,250 2026.8.22 3.284 Please refer to Note 29 Note 2
International Bills Finance Corporation Collateralized borrowing 93,500 2026.8.22 3.389~3.395 Please refer to Note 29 Note 2
International Bills Finance Corporation Collateralized borrowing 1,105,253 2026.8.22 2.056~2.112 Please refer to Note 29 Note 2
Less: Deduction in long-term borrowings – ( 10,517 )
arrangement fee
Less: Current portion of long-term borrowings ( 2,133,294 )
due within one year or one business cycle
Add: Deduction in long-term borrowings due 4,781
within one year or one business cycle -
arrangement fee
Long-term borrowings $ 9,098,063
----- End of picture text -----

Note 1: This is the amount of syndicated loans provided by a group of 5 banks, including Bank of Taiwan.

Note 2: This is the amount of syndicated loans provided by a group of 3 banks, including International Bills Finance Corporation.

• 79 -

Statement 8

		Statement 8
Radium Life Tech Co., Ltd. Statement of Lease Liabilities December 31, 2023 (In Thousands of New Taiwan Dollars) Item Land Transportation Equipment Buildings Sublease of buildings Total		Amount
		$ 17 1,817 33 547 $ 2,414

• 80 -

Statement 9

		Statement 9
Radium Life Tech Co., Ltd. Statement of Operating Revenue 2023 (In Thousands of New Taiwan Dollars) Item Construction revenue Rental income		Amount
		$ 1,081,969 182,276 $ 1,264,245

• 81 -

Statement 10

Radium Life Tech Co., Ltd. Statement of Operating Costs 2023 (In Thousands of New Taiwan Dollars)

==> picture [440 x 106] intentionally omitted <==

----- Start of picture text -----

Item Amount
Construction cost $ 1,042,627
Rental cost 186,070
Other operating costs ( 49,707 )
$ 1,178,990
----- End of picture text -----

• 82 -

Statement 11

Radium Life Tech Co., Ltd.

Statement of Operating Expenses

2023

(In Thousands of New Taiwan Dollars)

==> picture [440 x 252] intentionally omitted <==

----- Start of picture text -----

Item Selling and General and Total
marketing expenses administrative
expenses
Bank charges $ 126 $ 282,432 $ 282,558
Salaries 510 152,589 153,099
Depreciation 2,556 43,484 46,040
Commission 40,801 - 40,801
Management fee 8,565 25,360 33,925
Labor fee 8,435 15,680 24,115
Tax 11,701 646 12,347
Advertising fee 7,451 189 7,640
Others (Note) 30,108 35,792 65,900
$ 110,253 $ 556,172 $ 666,425
----- End of picture text -----

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

• 83 -

Statement 12

Radium Life Tech Co., Ltd.

Statement of Labor, Depreciation, Depletion, and Amortization by Function 2023 and 2022

(In Thousands of New Taiwan Dollars)

==> picture [495 x 38] intentionally omitted <==

----- Start of picture text -----

2023 2022
Classified as Classified as
Classified as operating Classified as operating
operating costs expenses Total operating costs expenses Total
----- End of picture text -----

Employees benefits expenses Salaries Labor and health insurance Pension Remuneration to directors Other employee benefits expenses Depreciation expenses Amortization expenses	$ 30 - - - - $ 30 $ 159,324 $ -	$ 144,242 11,364 5,915 6,824 11,056 $ 179,401 $ 46,040 $ 8,602	$ 144,272 11,364 5,915 6,824 11,056 $ 179,431 $ 205,364 $ 8,602	$ 58 - - - - $ 58 $ 156,574 $ -	$ 146,740 11,071 5,766 6,808 10,630 $ 181,015 $ 60,304 $ 7,738	$ 146,798 11,071 5,766 6,808 10,630 $ 181,073 $ 216,878 $ 7,738

• Note 1: The monthly average number of employees of the Company in 2023 and 2022 was 124 and 123, respectively, and 5 directors did not serve as employees concurrently.

• Note 2: (1) The average employee benefits expense for the year was NT$1,450 thousand (“Total employee benefits expense for the year - Total remuneration of directors” / “Number of employees for the year - Number of directors who did not serve as employees concurrently”). The average employee benefits expense in the prior year was NT$1,477 thousand (“Total employee benefits in the prior year - Total remuneration of directors” / “Number of employees in the prior year - Number of directors who did not serve as employees concurrently”).

• (2) The average employee wages and salaries for the year was NT$1,212 thousand (Total wages and salaries for the year / “Number of employees for the year - Number of directors who did not serve as employees concurrently”).

  • The average employee wages and salaries for the prior year was NT$1,244 thousand (Total wages and salaries for the prior year / “Number of employees for the prior year - Number of directors who did not serve as employees concurrently”).

• (3) The average adjustment to employee wages and salaries is -2.6% (“The average employee wages and salaries for the year - The average employee wages and salaries for the prior year” / The average wages and salaries for the prior year).

Note 3: The Company’s salary policy is described as follows:

• (1) Remuneration of directors and supervisors

The Company's remuneration paid to directors and supervisors is divided into three categories: compensation, remuneration, and fees for services rendered. Among them, for compensation, if there is any profit in the year, the total amount will be allocated according to the Company's Articles of Incorporation, relevant laws and regulations while with reference to the payment levels in the same industry, and then the compensation will be allocated based on the directors' and supervisors' participation in and contribution to the Company's operations during their terms of office. Remuneration refers to the payment received by the directors and supervisors for performing their duties or serving as functional committee members concurrently, and paid according to their qualifications while with reference to the payment levels in the same industry. Fees for services rendered are honoraria, special allowance, and various allowances received by the directors and supervisors for performing their duties or serving as functional committee members concurrently.

(2) Salary and remuneration of managers and employees The salary structure of managers and employees is divided into “salary” as well as “bonus and subsidy”. Salary is paid monthly, which is divided into basic salary and allowance; "bonus and subsidies" are given due to work performance or specific work achievements or meeting specific conditions. "Bonus" includes year-end bonus and employee compensation. The amount of year-end bonus is determined based on the profitability of the year, operating performance, and other indicators. Individuals are paid based on the indicators, such as position, performance, and years of service, which shall be approved by the remuneration committee before resolved by the board of directors. According to the provisions of the Company’s Articles of Incorporation and pre-tax income as the basis for allocation, the allocation criteria for employee compensation are evaluated based on relevant performance indicators for operations, and shall be approved by the remuneration committee before resolved by the board of directors. “Subsidies” are open for application by employees who meet specific conditions, such as transportation subsidy and medical examination subsidy.

• 84 -