RECTRON - Interim / Quarterly Report 2024

Stock Code：2302

Rectron Ltd. AND SUBSIDIARIES

Consolidated Financial Statements

With Independent Auditors’ Review Report For the Six Months Ended June 30, 2024 and 2023

Address: No. 71, Zhongshan Rd., Tucheng Dist., New Taipei City, Taiwan Telephone:886-2-28801122

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

Contents 1.Cover Page 2.Table of Contents 3.Independent Auditors’ Review Report 4.Consolidated Balance Sheets 5.Consolidated Statement of Comprehensive Income 6.Consolidated Statement of Changes in Equity 7.Consolidated Statement of Cash Flows 8.Notes to the Consolidated Financial Statements (1) Company history (2)Approval date and procedures of the consolidated financial statements (3) New standards, amendments and interpretations adopted (4)Summary of material accounting policies (5)Significant accounting assumptions and judgments, and major sources of estimation uncertainty (6) Explanation of significant accounts (7) Related-party transactions (8)Assets pledged as security (9) Commitments and contingencies (10)Losses due to major disasters (11)Subsequent events (12)Other (13)Other disclosures  Information on significant transactions  Information on investees  Information on investment in Mainland China  Major shareholders (14)Segment information	Page
	1 2 3 4 5 6 7 8 8 8~10 10~12 12 12~33 34~35 35 35~36 36 36 36 36~39 39 39 40 40~41

Contents
1.Cover Page
2.Table of Contents
3.Independent Auditors’ Review Report
4.Consolidated Balance Sheets
5.Consolidated Statement of Comprehensive Income
6.Consolidated Statement of Changes in Equity
7.Consolidated Statement of Cash Flows
8.Notes to the Consolidated Financial Statements
(1) Company history
(2)Approval date and procedures of the consolidated financial statements
(3) New standards, amendments and interpretations adopted
(4)Summary of material accounting policies
(5)Significant accounting assumptions and judgments, and major sources of
estimation uncertainty
(6) Explanation of significant accounts
(7) Related-party transactions
(8)Assets pledged as security
(9) Commitments and contingencies
(10)Losses due to major disasters
(11)Subsequent events
(12)Other
(13)Other disclosures

Information on significant transactions

Information on investees

Information on investment in Mainland China

Major shareholders
(14)Segment information

Page

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34~35
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Independent Auditors’ Review Report

To the Board of Directors of RECTRON LTD. Company `：`

Introduction

We have reviewed the accompanying consolidated balance sheets of the RECTRON LTD. Company and its subsidiaries as of June 30, 2024 and 2023, and the related consolidated statements of comprehensive income, changes in equity and cash flows for the six months ended June 30, 2024 and 2023, and notes to the consolidated financial statements, including a summary of significant accounting policies. Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews.

Scope of Review

Except as explained in the Basis for Qualified Conclusion paragraph, we conducted our reviews in accordance with the Standard on Review Engagements 2410, "Review of Financial Information Performed by the Independent Auditor of the Entity" of the Republic of China. A review of the consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with the Standards on Auditing of the Republic of China and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Basis for Qualified Conclusion

As stated in Note 4(b), the consolidated financial statements included the financial statements of certain non-significant subsidiaries, which were not reviewed by independent auditors. These financial statements reflect total assets amounting to $212,905 thousand and $225,115 thousand, constituting 9% and 10% of consolidated total assets as of June 30, 2024 and 2023, respectively, total liabilities amounting to $8,906 thousand and $11,823 thousand, constituting 1% and 3% of consolidated total liabilities as of June 30, 2024 and 2023, respectively, and total comprehensive income (loss) amounting to $(4,970) thousand, $(1,788)thousand, $(2,741)thousand and $4,846 thousand, constituting (16)%, (11)%, (5)% and 20% of consolidated total comprehensive income (loss) for the three months and the six months ended June 30, 2024 and 2023, respectively.

Qualified Conclusion

Except for the adjustments, if any, as might have been determined to be necessary had the financial statements of certain consolidated subsidiaries and equity accounted investee companies described in the Basis for Qualified Conclusion paragraph above been reviewed by independent auditors, based on our reviews, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the RECTRON LTD. Company and its subsidiaries as of June 30, 2024 and 2023, and of its consolidated financial performance and its consolidated cash flows for the six months ended June 30, 2024 and 2023 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China

3-1

Other Matters

We did not review the financial statements of certain consolidated subsidiaries, with total assets of $26,481 thousand and $22,697 thousand, representing 1% and 1% of the related consolidated total assets as of June 30, 2024 and 2023, and net sales of $671 thousand,$ 1,124 thousand, $1,378 thousand and $2,101 thousand, representing 0%, 1%, 0% and 1% of the related consolidated total net sales for the three months and the six months ended June 30, 2024 and 2023, respectively. Those financial statements were reviewed by other auditors whose reports have been furnished to us, and our review, insofar as it relates to the amounts included for certain consolidated subsidiaries, are based solely on the reports of the other auditors.

The engagement partners on the reviews resulting in this independent auditors’ review report are Shih-Chin Chih and Hsin-Ting Huang.

KPMG

Taipei, Taiwan (Republic of China) August 14, 2024

Notes to Readers

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

(English Translation of Consolidated Financial Statements Originally Issued in Chinese.) Rectron LTD. and Subsidiaries

Consolidated Balance Sheets

June 30, 2024, December 31 and June 30, 2023 (Expressed in Thousands of New Taiwan Dollar)

	June 30, 2024 Amount % 620,555 26 32,1167 1 671 - 147,430 6 5,168 - 421 - 116,813 4 12,778 1 3,6193 - 939,571 38 56,327 2 454,421 19 15,065 1 960,649 40 - - 2,448 - 1,488,910 62 2,428,4817 100	December 31, 2023	June 30, 2024 Amount % $ 5,000 - 2,828 - 105,465 4 81,659 3 12,331 1 3,718 - 362,886 16 573,897 24 3,061 - 1,454 - 62,684 3 4,756 - 71,955 3 645,852 27 1,663,029 68 9 - 60,655 2 87,143 4 50,424 2 (78,631 ) (3) 1,782,629 73 $ 2,428,481 100	June 30, 2024 Amount % $ 5,000 - 2,828 - 105,465 4 81,659 3 12,331 1 3,718 - 362,886 16 573,897 24 3,061 - 1,454 - 62,684 3 4,756 - 71,955 3 645,852 27 1,663,029 68 9 - 60,655 2 87,143 4 50,424 2 (78,631 ) (3) 1,782,629 73 $ 2,428,481 100	June 30, 2023
$ $	Amount 620,555 32,1167 671 147,430 5,168 421 116,813 12,778 3,6193 939,571 56,327 454,421 15,065 960,649 - 2,448 1,488,910 2,428,4817	Amount % 561,703 24 34,517 1 417 - 90,374 4 1,622 - 307 - 135,578 6 6,883 - 3,261 - 834,662 35 57,636 2 458,587 20 15,759 1 963,889 42 - - 3,769 `-` 1,499,640 65 2,334,302 100	Amount $ 5,000 2,828 105,465 81,659 12,331 3,718 362,886 573,897 3,061 1,454 62,684 4,756 71,955 645,852 1,663,029 9 60,655 87,143 50,424 (78,631 )		Amount % 20,000 1 1,192 - 127,192 6 171,088 9 9,688 - 1,868 - 1,556 - 332,526 16 3,672 - 2,752 - 62,679 3 8,017 - 77,120 3 409,646 19 1,663,029 78 9 - 51,988 2 60,074 3 52,940 2 (87,839) (4) 1,740,201 81 2,149,847 100




				1,782,629 2,428,481
			$

See accompanying notes to financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese.)

Rectron LTD. and Subsidiaries

Consolidated Statement of Comprehensive Income

For the six months ended June 30, 2024 and 2023 (Expressed in Thousands of New Taiwan Dollar, except for Earnings per Common Share)

	For the three	months ended June 30 % 2023 % 100 214,285 100 65 139,870 65 35 74,415 35 7 13,685 6 14 31,487 15 1 2,568 1 22 47,740 22 13 26,675 13 3 1,405 1 4 23,544 10 - (123) - 7 24,826 11 20 51,501 24 4 10,130 5 16 41,371 19 - (273) - - - - - (273) - (1) (23,703) (11) - (1,015) - - - - (1) (24,718) (11) (1) (24,991) (11) 15 16,380 8 16 41,371 19 15 16,380 8 0.19 0.25 0.19 0.25	For the six months e	For the six months e	nded June 30
$ $ $	2024 $ 203,421 132,401 71,020 14,195 29,082 1,538 44,815 26,205 47715 8,890 (88) 13603 39,808 7,995 31,813 666 - 666( (1,253) (914) - (2,167) (1,501) 30,312 31,813 30,312	% 100 65 35 7 14 1 22 13 3 4 - 7 20 4 16 - - - (1) - - (1) (1) 15		2024 % 350,678 100 224,538 64 126,140 36 23,951 7 62,632 18 3,069 1 89,652 26 36,488 10 7,590 2 18,728 6 (172) - 26,146 8 62,634 18 12,560 4 50,074 14 1,712 1 - - 1,712 1 8852 3 (2,052) (1) - - 6,800 2 8,512 3 58,586 17 50,074 14 58,586 17 0.30 0.30	2023 % 381,960 100 253,346 66 128,614 34 24,199 6 66,995 19 4,585 1 95,779 26 32,835 8 2,006 1 30,017 8 (287) - 31,736 9 64,571 17 12,603 3 51,968 14 (257) - - - (257) - (27,879) (7) 371 - - - (27,508) (7) (27,765) (7) 24,203 7 51,968 14 24,203 17 0.31 0.31
			$













		16 15

		0.19 0.19

See accompanying notes to financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese.)

Rectron LTD. and Subsidiaries

Consolidated Statement of Changes in Equity

For the six months ended June 30, 2024 and 2023 (Expressed in Thousands of New Taiwan Dollar)

				Attributable to owners ofparent	Attributable to owners ofparent	Attributable to owners ofparent	Total	Total equity
	Ordinary share	Capital surplus		Retained earnings	Total	Other equity
			Legal reserve	Special reserve		Exchange differences on translation of foreign financial statements Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income (55,153) (4,921) - - (27,879) 114 (27,879) 114 - - (83,032) (4,807) (83,104) (4,039) - - 8,852 (340) 8,852 (340) - - (74,252) (4,379)
$1,663,029 - - - - $ 1,663,029 $ 1,663,029 - - - - $ 1,663,029		9 - - - - 9 9 - - - - 9	34,364 - - - 17,624 - 51,988 51,988 - - - 8,666 - 60,654	34,924 - - - 25,150 - 60,074 60,074 - - - 27,069 - 87,143	176,788 51,968 - 51,968 (17,624) (25,150) (133,042) 52,940 87,640 50,074 - 51,968 (8,666) (27,069) (51,554) 50,425	(55,153) - (27,879) (27,879) - (83,032) (83,104) - 8,852 8,852 - (74,252)	(60,074) - (27,765) (27,765) - (87,839) (87,143) - 8,512 8,512 - (87,631)	1,849,404 51,968 (27,765) 24,203 (133,042) 1,740,201 1,775,597 50,074 8,512 58,586 (51,554) 1,782,629


$

See accompanying notes to financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese.)

Rectron LTD. and Subsidiaries

Consolidated Statement of Cash Flows

For the six months ended June 30, 2024 and 2023 (Expressed in Thousands of New Taiwan Dollars)

For the six months ended June 30,	For the six months ended June 30,	For the six months ended June 30,
	2024	2023
$	62,634 24,615 1,537 (949) 172 (7,399) (191) - 1,315 (37) (6,646) (1,390) 11,027 (254) (56,107) (3,550) 18,765 (5,895) (358) (47,399) 2,770 29,768 (2,415) 11,564 (722) 40,932 (6,467) 4,560 67,194 7,395 191 (185) (7,258)) 67,337 (24,341) 33,388 (11,382) - (216) (2,551) 15,000 (25,000) - (1,113) (11,133) (5,199) 58,852 561,703 620,555	64,571 25,954 1,669 (863) 287 (1940) (66) (9) - - (9,550) (254)
		15,228
$		1,983 (5,899) 1,639 15,726 14,928 (847)
		27,530
		(749) (2,404) 1,988 290 (757)
		(1,632)
		25,898
		41,126
		105,697 1,939 66 (292) (26,487)
		80,923
		(14,916) 20,456 (3,469) 78 (542) 1,607 20,000 (30,000) 641 (1,649)

		(11,008)
		(20,856) 50,666 245,962
		296,628

See accompanying notes to financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese.)

Rectron Ltd. and Subsidiaries

Notes to Consolidated Financial Statements

June 30, 2024 and 2023

(Expressed in Thousands of New Taiwan Dollar, except for Earnings per Share Information and Unless Otherwise Specified)

1. Company history

Rectron Ltd. (the “Company”) was established and approved by the Ministry of Economic Affairs on January 23, 1976. The registered address is No. 71, Zhongshan Road, Tucheng District, New Taipei City. The Company was originally named "Rectron Precision Electronics Industry Co., Ltd." and changed its name to "Rectron Ltd." on June 29, 2000, as resolved by the shareholders' meeting and approved by the Ministry of Economic Affairs.

The Company and its subsidiaries (together referred to as the “Group”)main business operations include the manufacture and sale of various rectifiers, other semiconductor components, rental and sale of real estate, trading of wines, and manufacture and sale of medical equipment.

2. Approval date and procedures of the consolidated financial statements

The consolidated financial statements for the six months ended June 30, 2024 and 2023were authorized for issuance by the board of directors on August 14, 2024.

3. New standards and interpretations not yet adopted

(a) The impact of the International Financial Reporting Standards (“IFRSs”) endorsed by the Financial Supervisory Commission, R.O.C. which have already been adopted.
The Group has initially adopted the (following) new amendments, which do not have a significant impact on its consolidated financial statements, from January 1, 2024 ：
Amendments to IAS 1 “Classification of Liabilities as Current or Non-current”
Amendments to IAS 1 “Non-current Liabilities with Covenants”
Amendments to IAS 7 and IFRS 7 “Supplier Finance Arrangements”
Amendments to IFRS 16 “Lease Liability in a Sale and Leaseback”

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

The following new and amended standards, which may be relevant to the Group, have been issued by the

International Accounting Standards Board (IASB), but have yet to be endorsed by the FSC:

(Continued)

		9
Standards or Interpretations IFRS 18 “Presentation and Disclosure in Financial Statements” Annual Improvements to IFRS Accounting Standards	Content of amendment The new standard introduces three categories of income and expenses, two income statement subtotals and one single note on management performance measures. The three amendments, combined with enhanced guidance on how to disaggregate information, set the stage for better and more consistent information for users, and will affect all the entities.  A more structured income statement: under current standards, companies use different formats to present their results, making it difficult for investors to compare financial performance across companies. The new standard promotes a more structured income statement, introducing a newly defined ‘operating profit’ subtotal and a requirement for all income and expenses to be allocated between three new distinct categories based on a company’s main business activities.  Management performance measures (MPMs): the new standard introduces a definition for management performance measures, and requires companies to explain in a single note to the financial statements why the measure provides useful information, how it is calculated and reconcile it to an amount determined under IFRS Accounting Standards.  Greater disaggregation of information: the new standard includes enhanced guidance on how companies group information in the financial statements. This includes guidance on whether information is included in the primary financial statements or is further disaggregated in the notes. The amendments set out: 1.IFRS 1 “First-time Adoption of International Financial Reporting Standards”: The amendments address a potential confusion arising from an inconsistency in wording between paragraph B6 of IFRS 1 and requirements for hedge accounting in IFRS 9 Financial Instruments. 2.IFRS 7 “Financial Instruments: Disclosures”: The amendments address a potential confusion in IFRS 7 arising from an obsolete reference to a paragraph that was deleted from the standard when IFRS 13 Fair Value Measurement was issued. 3.IFRS 9 “Financial Instruments”:  Derecognition of a lease liability The IASB’s amendment states that if a lease liability is derecognized, then the derecognition will be accounted for under IFRS 9, (i.e. the difference between the carrying amount and the consideration paid is recognized in profit or loss). However, when a lease liability is modified, the modification will be accounted for under IFRS 16 Leases.  Transaction price The amendments require companies to initially measure a trade receivable without a significant financing component	Effective date per IASB
		January 1, 2027 January 1, 2026

(Continued)

at the amount determined by applying IFRS 15 Revenue from Contracts with Customers. The amendments remove the conflict between IFRS 9 and IFRS 15 over the amount at which a trade receivable is initially measured.

4.IFRS 10 “Consolidated Financial Statements”:

The amendments clarify the determination of a ‘de facto agent’.

5.IAS 7 “Statement of Cash Flows”:

The amendments address a potential confusion in applying paragraph 37 of IAS 7 that arises from the use of the term ‘cost method’.

The Group is evaluating the impact on its consolidated financial position and consolidated financial

performance upon the initial adoption of the abovementioned standards or interpretations. The results thereof will be disclosed when the Group completes its evaluation.

The Group does not expect the following other new and amended standards, which have yet to be

endorsed by the FSC, to have a significant impact on its consolidated financial statements:

Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets Between an Investor and Its Associate or Joint Venture”
IFRS 17 “Insurance Contracts” and amendments to IFRS 17 “ Insurance Contracts”
IFRS 19 “Subsidiaries without Public Accountability: Disclosures”
Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments”

4. Summary of significant accounting policies

(1) Statement of compliance

These consolidated financial statements have been prepared in accordance with the preparation and guidelines of IAS 34 “Interim Financial Reporting” which are endorsed and issued into effect by FSC, and do not include all of the information required by the Regulations and International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations and SIC Interpretations endorsed and issued into effect by the FSC (hereinafter referred to IFRS endorsed by the FSC)for a complete set of the annual consolidated financial statements.

Except the following accounting policies mentioned below, the significant accounting policies adopted in the consolidated financial statements are the same as those in the consolidated financial statement for the year ended December 31, 2023. For the related information, please refer to note 4 of the consolidated financial statements for the year ended December 31, 2023.

(Continued)

(2) Basis of consolidation

(a) List of subsidiaries in the consolidated financial statements:

Name of
Name of
investor
subsidiary
Principal activity
The
Company
Rectron
(China)
Limited
(Rectron
China)
Sales of rectifiers, etc.
Electronic components
The
Company
RECTRON
ELECTRONIC
ENTERPRISE
S,INC (REEI)
Sales of rectifiers, etc.
Electronic components
The
Company
CHU-TING
ENTERPRISE
CO., LTD.
(Chu-Ting)
Wholesale of tobacco and
alcohol products and
manufacturing and sales of
medical equipment.
Rectron
(China)
Limited
Zhejiang
Rectron
Electronic
Co.,LTD.
(Zhejiang
Rectron)
Manufacturing and sales of
rectifiers and other
electronic components.

Shareholding
June 30,
2024
December
31, 2023
June 30, 2023
Description
100%
100%
100%
Subsidiaries with direct
ownership of voting rights
exceeding 50% of the
total shares issued.
100%
100%
100%
Subsidiaries with direct
ownership of voting rights
exceeding 50% of the
total shares issued.(Note)
100%
100%
100%
Subsidiaries with direct
ownership of voting rights
exceeding 50% of the
total shares issued. (Note)

100%
100%
100%
Subsidiaries with indirect
ownership of voting rights
exceeding 50% of the
total shares issued.

Note : It is an insignificant subsidiary that the financial statements have not been reviewed.

(b) List of subsidiaries which are not included in the consolidated financial statements: None.

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

An asset is classified as current under one of the following criteria, and all other assets are classified as non current.

It is expected to be realized, or intended to be sold or consumed, in the normal operating cycle;
It is held primarily for the purpose of trading;
It is expected to be realized within twelve months after the reporting period; or
The asset is cash or cash equivalents (as defined in IAS 7), except when there are other restrictions that would prevent the asset from being exchanged or used to settle a liability for at least twelve months after the reporting period.

A liability is classified as current under one of the following criteria, and all other liabilities are classified as non current.

An entity shall classify a liability as current when:

It is expected to be settled in the normal operating cycle;
It is held primarily for the purpose of trading;
It is due to be settled within twelve months after the reporting period; or
As of the end of the reporting period, there is no right to defer the settlement of the liability for at least twelve months after the reporting period.

(4) Employee benefits

The pension cost in the interim period was calculated and disclosed on a year-to-date basis by using the actuarially determined pension cost rate at the end of the prior fiscal year.

(Continued)

(5) Income taxes

The income tax expenses have been prepared and disclosed in accordance with paragraph B12 of International Financial Reporting Standards 34, Interim Reporting.

Income tax expenses for the period are best estimated by multiplying pre-tax income for the interim reporting period using the effective annual tax rate as forecasted by the management. This should be recognized fully as tax expense for the current period (and allocated to current and deferred taxes based on its proportionate size).

For a change in tax rate that is substantively enacted in an interim period, the effect of the change should immediately be recognized in the interim period in which the change occurs.

Temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their respective tax bases shall be measured based on the tax rates that have been enacted or substantively enacted at the time of the asset or liability is recovered or settled, and be recognized directly in equity or other comprehensive income as tax expense.

5. Significant accounting assumptions and judgments, and major sources of estimation uncertainty

The preparation of the consolidated financial statements in conformity with the Regulations and IFRSs (in accordance with IAS 34“Interim Financial Reporting” and endorsed by the FSC) requires management to make judgments, estimates and assumptions that affect the application of the accounting policies and the reported amount of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Except for the following, the preparation of the consolidated interim financial statements, estimates and underlying assumptions are reviewed on an ongoing basis which are in conformity with the consolidated financial statements for the year ended December 31, 2023. For related information, please refer to note 5of the consolidated financial statements for the year ended December 31, 2023.

6. Explanation of significant accounts

Except for the following disclosures, there were no material differences in the disclosures of significant accounts between the interim consolidated financial statements for the current period and the 2023 consolidated financial statements. Please refer to note6 to the 2023 annual consolidated financial statements.

(a) Cash and cash equivalents

Cash on hand and petty cash Cash in banks Time deposits Cash and cash equivalents in the consolidated statement of cash flows	June 30, 2024	December 31, 2023	June 30, 2023
	$ 225 581,390 38,940	295 533,774 27,634	313 271,403 24,912
	$ 620,555	561,703	296,628

Please refer to Note 6(q) for the fair value sensitivity analysis and interest rate risk of the financial assets and liabilities.

(Continued)

(b) Financial assets

1. Current financial assets at fair value through profit or loss

June 30, 2024 December 31, 2023 June Financial assets designation as measured at fair value through profit or loss Shares of stock of overseas listed companies - RTX $ - 15,504 Shares of stock of overseas listed companies - NVDA 16,094 5,296 Shares of stock of overseas listed companies - OXY - 14,446 Shares of stock of overseas listed companies - LMT 15,158 - Shares of stock of overseas listed companies - Tesla - - Shares of stock of listed companies -TSMC - 5,382 Assets mandatorily measured at fair value through profit or loss: Beneficiary certificates 864 785 Total $ 32,116 34,517 2. Non-current financial assets at fair value through other comprehensive income June 30, 2024 December 31, 2023 Debt investments at fair value through other comprehensive income Corporate bonds– Apple $ 25,720 25,735 Corporate bonds – AT&T 9,278 9,114 Corporate bonds–Pfizer 4,071 4,121 Corporate bonds–SocGen - 3,090 Equity investments at fair value through other comprehensive income Shares of stock of unlisted companies 17,258 15,546 Total $ 54,598 57,636	June	30, 2023 - - 14,347 - 11,178 3,456 686 29,667 June 30, 2023 25,785 8,866 4,204 - 15,743 54,598	30, 2023 - - 14,347 - 11,178 3,456 686 29,667 June 30, 2023 25,785 8,866 4,204 - 15,743 54,598	30, 2023 - - 14,347 - 11,178 3,456 686 29,667 June 30, 2023 25,785 8,866 4,204 - 15,743 54,598

				54,598

(1) Debt investments at fair value through other comprehensive income

The Company consolidated investments in bonds measured at fair value through other comprehensive income in the financial statements as of June 30, 2024 December 31, 2023 and

(Continued)

June 30, 2023. The effective interest rates range respectively from 2.00% to 4.01%, 2.00% to 4.90%, and 2.00% to 4.01%, and the maturity dates range from 2036 to 2045. The Company holds bond investments through the business model of collecting contractual cash flows and selling financial assets, and therefore reports them as financial assets measured at fair value through other comprehensive income.

(2) Equity investments at fair value through other comprehensive income

The Group designated the investments shown above as equity securities at fair value through other comprehensive income because these equity securities represent those investments that the Group intends to hold for the long term for strategic purposes.

(3) For credit risk (including the impairment of debt investments) and market risk; please refer to note 6(q).
(4) As of June 30, 2024, December 31, 2023 and June 30, 2023, the Group’s financial assets were not pledged as collateral.

(c) Trade receivables and notes receivable

Notes receivable from operating activities Trade receivables Trade receivables–Non-current Less: Loss allowance	$	June 30, 2024 671 172,209 48,227 (73,006) $ 148,101	December 31, 2023 417 114,752 48,227 (72,605) 90,791	June	30, 2023 100 191,422 48,227 (76,510) 163,239

The Group applies the simplified approach to provide for its expected credit losses, i.e. the use of lifetime expected loss provision for all receivables. To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics and the days past due, as well as incorporated forward looking information, including macroeconomic and relevant industry information. The loss allowance provision were determined as follows:

	June 30, 2024
Gross carrying amount $ 119,321 29,526 72,260 $ 221,109	Weighted- average loss rate 0.05%~1.94% 0.05%~9.13% 0%~100%	Loss allowance provision
		108 652 72,246
		73,006

(Continued)

	December 31, 2023
Gross carrying amount $ 66,501 24,424 72,471 $ 163,396	Weighted- average loss rate 0.05%~1.84% 0.05%~8.89% 0%~100% June 30, 2023	Loss allowance provision
		19 129 72,457
		72,605

Gross carrying amount $ 142,886 20,652 76,211 $ 239,749	Weighted- average loss rate 0.05%~1.72% 0.05%~8.27% 0%~100%	Loss allowance provision
		- 364 76,146
		76,510

The movements in the allowance for trade receivables and notes receivable were as follows:

For the six months ended June 30,	For the six months ended June 30,	For the six months ended June 30,
	2024 72,605 590 (1,539) - 1,350 73,006	2023 78,794 (863) (1,645) 224 76,510
$
$

As of June 30, 2024, December 31, 2023 and June 30, 2023, the Group’s the aforementioned trade receivables and notes receivable were not pledged as collateral.

(Continued)

(d) Inventories

entories
June 30, 2024 Raw materials and consumables 26,762 Work in progress 20,878 Finished goods 53,153 Merchandise 30,739 Goods and materials in transit 1,846 Subtotal 133,438 Less: Allowance for inventory market decline and obsolescence (16,925) 116,813	June 30, 2024	December 31, 2023	June 30, 2023
	26,762 20,878 53,153 30,739 1,846	24,914 19,707 76,590 28,176 2,614	26,738 25,273 58,153 28,855 1,449
		152,001 (16,423)	140,468 (14,490)
	116,813	135,578	125,978

As of June 30, 2024, January1to 2023 and June 30, 2023, the details of the cost of sales were as follows:

For the three months ended June 30, 2024 2024 $ 130,074 $ 140,158 (257) (3,856) 776 43 $ 130,590 136,345	For the six months ended June 30,	For the six months ended June 30,
	2023 215,944 502 4,498	2023 248,525 (1,853) 576 247,248

$ 130,590	220,944

As of June 30, 2024, December 31, 2023 and June 30, 2023, the Group’s the aforementioned trade receivables and notes receivable were not pledged as collateral.

(Continued)

(e) Property, plant and equipment

The cost and accumulated depreciation of the property, plant and equipment of the Group for the six months ended June 30, 2024 and 2023 were as follows:

	Land	Machinery and equipment	Total
$ $ $ $ $ $ $ $ $ $ $ $	181,394 - - -	677,096 1,603 1,088 (12,492) 692,202 686,790 - (691) - (13,807) 672,292 531,955 11,751 10,570) 554,276 518,023 12,136 (622) (12,042) 517,495 145,141 137,926 168,767 154,797	1,177,102 11,382 (1,315) 17,949 1,205,118 1,191,949 3,469 (691) (4,888) (20,198) 1,169,401 718,515 18,265 13,917 750,697 694,112 19,102 (622) (15,870) 696,722 458,587 454,421 497,837 472,919
	181,394
	181,394 - - - -
	181,394
	- - -
	-
	- - - -
	-
	181,394
	181,394
	181,394
	181,394

As of June 30, 2024, December 31, 2023 and June 30, 2023, the Property, plant and equipment of the Group had been pledged as collateral for long-term borrowings; please refer to note 8.

For the details regarding the subsidiary Zhejiang Rectron housing and construction relocation agreement with Jiashan Economic Development Zone Asset Management Co., Ltd., please refer to Note 9(b).

(f) Right-of-use assets

The Group leases many assets including land and buildings, vehicles, and other equipment.

Information about leases for which the Group is a lessee is presented below:

Cost: Balance at January 1, 2024 Effect of movement in exchange rates Balance at June 30, 2024	Land $ 9,906 303 $ 10,209	Buildings 12,826 728 13,554	Machinery and equipment - - -	Other equipment 343 - 343	Total
					23,075 1,031
					24,106

(Continued)

Land Balance at January 1, 2023 $ 10,196 Additions - Reduction Effect of movement in exchange rates (379) Balance at June 30, 2023 $ 9,817 Accumulated depreciation and impairment losses: Balance at January 1, 2024 $ 1,250 Depreciation for the year 155 Effect of movement in exchange rates 47 Balance at June 30, 2024 $ 1,722 Balance at January 1, 2023 $ 1,252 Depreciation for the year 155 Reduction - Effect of movement in exchange rates (51) Balance at June 30, 2023 $ 1,356 Carrying amount: Balance at January 1, 2024 $ 8,386 Balance at June 30, 2024 $ 8,487 Balance at January 1, 2023 $ 8,944 Balance at June 30, 2023 $ 8,461		Buildings 12,827 - 162 12,989 5,724 1141 346 7,211 6,408 1413 - 103 7,924 7,102 6,343 6,419 5,065	Machinery and equipment 1,442 - (1,442) - - - - - - 1,202 240 (1,442) - - - - 240 -	Other equipment - 343 - 343 72 36 - 108 - 36 - - 36 271 235 - 307		Total
						24,465 343 (1,442) (217)
						23,149
						7,316 1,332 393
						9,041
						8,862 1,844 (1,442) 52
						9,316
						15,759 15,065 15,603 13,833

For the details regarding the subsidiary Zhejiang Rectron right-of-use assets land relocation

agreement with Jiashan Economic Development Zone Asset Management Co., Ltd., please refer to Note 9(b).

(g) Investment property

Cost: Balance at January 1, 2024 Effect of movement in exchange rates Balance at June 30, 2024 Balance at January 1, 2023 Effect of movement in exchange rates Balance at June 30, 2023	Land and improvements $ 663,510 - $ 663,510 $ 663,510 - $ 663,510	Buildings 373,879 2,559 376,438 376,331 (3,213) 373,118	Total
			1,037,389 2,559
			1,039,948
			1,039,841 (3,213)
			1,036,628

(Continued)

Accumulated depreciation and impairment losses: Balance at January 1, 2024 Depreciation for the year Effect of movement in exchange rates Balance at June 30, 2024 Balance at January 1, 2023 Depreciation for the year Effect of movement in exchange rates Balance at June 30, 2023 Carrying amount: Balance at January 1, 2024 Balance at June 30, 2024 Balance at January 1, 2023 Balance at June 30, 2023	Land and improvements $ - - - $ - $- - - $- $ 663,510 $ 663,510 $ 663,510 $ 663,510	Buildings 73,500 5,018 781 79,299 64,163 5,008 (846) 68,325 300,379 297,139 312,168 304,793		Total
				73,500 5,018 781
				79,299
				64,163 5,008 (846)
				68,325
				963,889 960,649 975,678 968,303

Investment properties are self-owned assets held by the Consolidated Companies. The lease term for investment properties ranges from 1 to 6 years, and it is non-cancellable. Due to the need for organic renewal and industrial transformation and upgrading in the Jiashan Economic and Technological Development Industrial Park, where the subsidiary Zhejiang Rectron is located, Zhejiang Rectron agreed to vacate the premises with Jiashan Economic Development Zone Asset Management Co., Ltd. on September 22, 2023. Therefore, the lease contract was terminated at the end of August 2023. Please refer to Note 9(b) for details.
Due to the restriction in the law at that time, private entities were not allowed to acquire agricultural land. Therefore, the Consolidated Companies appointed Mr. Lin Wen-Teng, one of the directors, to register the real estate investment under his personal name. To ensure the preservation of the Consolidated Companies' assets, the property has been pledged back to the Consolidated Companies.
The fair value of investment property was not significantly different from those disclosed in Note 6(g) of the annual consolidated financial statements for the year ended December 31, 2023.
As of June 30, 2024, December 31, 2023 and June 30, 2023, the Property, plant and equipment of the Group had been pledged as collateral for long-term borrowings; please refer to note 8.

(h) Short-term borrowings

June 30, 2024	December 31, 2023	June 30, 2023
$ 5,000	15,000	20,000
$ 395,000	385,000	300,000
1.90%~2.01%	1.89%~2.20%	1.79%~2.02%

For the collateral for short-term borrowings, please refer to note 8.

(Continued)

(i)Operating Lease

There were no significant changes in operating lease for the six months ended June 30, 2024 and 2023. Please refer to Note 6(i) of the consolidated financial statements for the year ended December31, 2023 and 2022 for other related information.

(j)Provisions

1. Defined benefit plans

Management believes that there was no material volatility of the market, no material reimbursement and settlement or no other material onetime events since prior fiscal year. As a result, thepensioncostintheaccompanyinginterimperiodwasmeasuredanddisclosedaccording to the actuarial report as of December 31, 2023and 2022.

The expenses recognized in profit or loss for the Group are as follows:

Operating cost Selling expenses Administration expenses Total	For the Three months Ended June 30 For the Six months Ended June 30	For the Three months Ended June 30 For the Six months Ended June 30	For the Three months Ended June 30 For the Six months Ended June 30	For the Three months Ended June 30 For the Six months Ended June 30
	2024	2023 4 1 7 12	2024	2023 8 2 14 24
	3 - 5 8		5 - 10 15

Defined contribution plans

The Group’s employee benefit retirement expenses respectively.

For the Three months Ended June 30 For the Six months Ended June 30 2024 2023 2024 2023 Operating cost $ 119 130 253 256 Selling expenses 48 52 93 105 Administration expenses 206 185 401 369 Research and development expenses - 11 11 21 Total $ 373 378 758 751 e detailed breakdown of retirement benefit expenses recognized by foreign subsidiarie ordance with relevant local regulations is as follows: For the Three months Ended June 30 For the Six months Ended June 30 2024 2023 2024 2023 Administration expenses $ 786 1,159 1,812 1,883	For the Three months Ended June 30	For the Six months Ended June 30
	2024 2023	2024
	$ 119 130 48 52 206 185 - 11
	$ 373 378

The detailed breakdown of retirement benefit expenses recognized by foreign subsidiaries in accordance with relevant local regulations is as follows:
(k) Income tax
1. The components of income tax for the six months ended June 30, 2024 and 2023 were as follows:

(Continued)

For the three months ended June 30 2024 2023 $ 7,895 8,205 - 21 100 1,904 $7,995 10,130	For the three months ended June 30 2024 2023 $ 7,895 8,205 - 21 100 1,904 $7,995 10,130	For the six months ended June 30	For the six months ended June 30
2024 $ 7,895 - 100 $7,995		2024 12,460 - 100 12,560	2023
	8,205 21 1,904 10,130		10,678 21 1,904
			12,630

(1) Company’s income tax return for the year 2022 as been examined by the tax authorities.

(2)The domestic subsidiaries of the Company have filed and settled their corporate income tax returns with the tax authorities up to the fiscal year 2022 as approved.

(l)Capital and other equity

Except for the following disclosure, there was no significant change in capital and other equity for the periods from January 1 to June 30, 2024 and 2023. For the related information, please refer to note 6(l) to the consolidated financial statements for the year ended December 31, 2023.

Retained earnings

If the Company has surplus in the annual final accounts, it shall pay taxes and donations in accordance with the law, offset cumulative losses, and then appropriate 10% as statutory surplus reserve. However, when the statutory surplus reserve has reached the Company's paid-in capital, no further appropriation is required. The remaining surplus shall be appropriated or reversed as required by laws and regulations, or transferred to the special surplus reserve. If there is still surplus, together with undistributed surplus at the beginning of the period, it will be classified as distributable surplus. The Board of Directors shall propose a surplus distribution plan for approval by the shareholders' meeting, and distribute dividends to the shareholders.

Taking into account financial, operational, and business factors, the Company may distribute dividends to shareholders, which shall not be less than 10% of the distributable surplus for the current fiscal year. However, if the accumulated distributable surplus is less than 3% of the paidin capital, no distribution shall be made. Dividends may be distributed in the form of cash dividends or stock dividends. Cash dividends shall be given priority in the distribution of earnings, but stock dividends may also be distributed. The proportion of cash dividends shall not be less than 10% of the total dividend amount.

For the distribution of dividends to shareholders in the form of cash, the Board of Directors is authorized to carry out such distribution with the approval of two-thirds or more of the attending directors and a majority of the attending directors, and to report it to the shareholders' meeting.

(i) Legal reserve

When a company incurs profit, the shareholders shall decide on the distribution of the statutory earnings reserve either by issuing new shares or by paying cash of up to 25% of the actual share capital.

(ii) Special reserve

The Company chose to apply the exemption under IFRS 1 at its initial adoption of IFRSs. Any unrealized revaluation surplus, accumulated translation adjustment, and increasing

(Continued)

amount incurred from adopting the fair value as cost for the assets classified as investment property at the transition date. According to the Financial Supervisory Commission's Order No. 1010012865 issued on April 6, 2012, an equal amount shall be appropriated to the special surplus reserve. When using, disposing of, or reclassifying related assets, a proportionate reversal of the originally appropriated special surplus reserve may be distributed as earnings.

According to the regulations of the Financial Supervisory Commission, when the Company distributes distributable earnings, the difference between the net amount of reductions in other shareholders' equity items recorded in the current year and the balance of the special surplus reserve mentioned above shall be considered. When distributing earnings for the fiscal year 2023, the Company will allocate the current year's income and the undistributed earnings from previous periods to the special surplus reserve. When distributing earnings for the fiscal year 2024, the Company will allocate the current year's after-tax net profit, along with items other than the current year's after-tax net profit, to the undistributed earnings and the special surplus reserve from previous periods. The Company is not allowed to distribute the amounts related to reductions in other shareholders' equity from previous periods, except for the allocation to the special surplus reserve. In the event of reversals in the amounts of reductions in other shareholders' equity in the future, earnings may be distributed based on the reversed portion. As of June 30, 2024, December 31, 2023, and June 30, 2023, the balance of the special surplus reserve is $87,143 thousand, $60,074 thousand, and $60,074 thousand, respectively.

(iii) Earnings distribution

The amounts of cash dividends and share dividends for the2023 and 2022 earnings distribution had been approved, the board meeting held on March 15, 2024 and March 24, 2023; while the earnings distribution for 2023 and 2022 had been approved during the shareholders’ meeting on June 26, 2024 and June 16, 2023 as follows:

Cash dividends distributed to ordinary shareholders (iv) OCI accumulated in reserves Balance at January 1, 2024 Exchange differences on foreign operations Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income Balance at June 30, 2024 Balance at January 1, 2023 Exchange differences on foreign operations Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income Balance at June 30, 2023	2023 2022 Amount per share Total amount Amount per share Total amount $0.31 51,554 0.80 133,042 Exchange differences on translation of foreign financial statements Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income Total $ (83,104) (4,039) (87,143) 8,852 - 8,852 - (340) (340) $ (74,252) (4,379) (78,631) $ (55,153) (4,921) (60,074) (27,879) - (27,879) - 114 114 $ (83,032) (4,807) (87,839)	2023 2022 Amount per share Total amount Amount per share Total amount $0.31 51,554 0.80 133,042 Exchange differences on translation of foreign financial statements Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income Total $ (83,104) (4,039) (87,143) 8,852 - 8,852 - (340) (340) $ (74,252) (4,379) (78,631) $ (55,153) (4,921) (60,074) (27,879) - (27,879) - 114 114 $ (83,032) (4,807) (87,839)
		(4,379) (78,631)
		(4,921) (60,074) - (27,879) 114 114
		(4,807) (87,839)

(Continued)

(m) Earnings per share

For the six months ended June 30, 2024 and 2023, the Company’s earnings per share were calculated as follows:

1. Basic earnings per share

(i) Profit attributable to ordinary shareholders of the Company

Profit/(loss) of the Company for the year	For the three months ended June 30 2024 2023 $ 31,813 41,371	For the six months ended June 30	For the six months ended June 30
	2024 $ 31,813	2024 50,074	2023
			51,968

(ii) Weighted-average number of ordinary shares

Weighted-average number of ordinary shares(thousand shares) Earnings per share	For the three months ended June 30 2024 2023 $ 166,303 166,303 0.19 0.25	For the six months ended June 30	For the six months ended June 30
		2024 166,303 0.30	2023
			166,303
			0.31

2. Diluted earnings per share

The diluted earnings per share of the Group for the fiscal year 2024 and the period from January 1, 2023, to June 30, 2023, are calculated based on the net income attributable to the equity holders of the Company and the adjusted weighted average number of ordinary shares outstanding, considering the dilutive effects of all potential ordinary shares. The calculations are as follows:

(i) Profit attributable to ordinary shareholders of the Company

Profit/(loss) attributable to ordinary shareholders of the Company (basic)	For the three months ended June 30 2024 2023 $ 31,813 41,371	For the six months ended June 30	For the six months ended June 30
	2024 $ 31,813	2024 50,074	2023
			51,968

(ii) Weighted-average number of ordinary shares

For the three months ended June 30 2024 2023 $166,303 166,303 36 33 166,339 166,336 0.19 0.25	For the six months ended June 30	For the six months ended June 30
2024 $166,303 36 166,339 0.19	2024 166,303 61 166,364 0.30	2023 166,303 84
		166,387
		0.31

(Continued)

(n) Revenue from contracts with customers

i. Disaggregation of revenue

For the three months ended June 30, 2024

Electronics Division Primary geographical markets Asia $ 175,647 America 17,431 Europe 1,392 Others 387 $ 194,857 Major products/services lines Electronic Components Sales $194,857 Rental Income - Medical Equipment Sales - Wine Trading - $194,857	Property Management Division 5,687 - - - 5,657 - 5,687 - - 5,687	Medical Equipment Division 2,014 - - 2,014 - - 2,014 - 2,014	Wine Trading Department 863 - - -	Total
				184,211 17,431 1,392 387
			863	203,421
			- - - 863 863	194,857 5,687 2,014 863
				203,421

For the three months ended June 30, 2023

Electronics Division Primary geographical markets Asia $ 180,943 America 17,200 Europe 3,057 Others 206 $ 201,406	Property Management Division 7,864 - - - 7,864	Medical Equipment Division 3,660 - - - 3,660	Wine Trading Department 1,355 - - - 1,355	Total
				193,822 17,200 3,057 206
				214,285

(Continued)

For the three months ended June 30, 2023

Electronics Division Major products/services lines Electronic Components Sales $ 201,406 Rental Income - Medical Equipment Sales - Wine Trading - $ 201,406	Property Management Division - 7,864 - - 7,864	Medical Equipment Division Wine Trading Department - - - - 3,660 - - 1,355 3,660 1,355	Total
			201,406 7,864 3,660 1,355
			214,285

For the six months ended June 30, 2024

Electronics Division Primary geographical markets Asia $ 290,210 America 39,548 Europe 2,694 Others 634 $ 333,086 Major products/services lines Electronic Components Sales $ 333,086 Rental Income - Medical Equipment Sales - Wine Trading - $ 333,086	Property Management Division 11,123 - - - 11,123 - 11,123 - - 11,123	Medical Equipment Division 4,796 - - - 4,796 - - 4,796 - 4,796	Wine Trading Department 1,673 - - -	Total
				307,802 39,548 2,694 634
			1,673	350,678
			- - - 1,673 1,673	333,086 11,123 4,796 1,673
				350,678

(Continued)

For the six months ended June 30, 2023

Electronics Division Primary geographical markets Asia $ 311,564 America 36,548 Europe 5,401 Others 518 $ 354,031 Major products/services lines Electronic Components Sales $ 354,031 Rental Income - Medical Equipment Sales - Wine Trading - $ 354,031	Property Management Division 15,387 - - - 15,387 -7 15,387 - - 15,387	Medical Equipment Division 9,766 129 - - 9,895 - - 9,895 - 9,895	Wine Trading Department 2,647 - - - 2,647 - - - 2,647 2,647	Total
				339,364 36,677 5,401 518
				381,960
				354,031 15,387 9,895 2,647
				381,960

ii. Contract balances

Trade receivables and notes receivable Less: allowance for impairment Contract liabilities	June 30, 2024 $ 172,880 (24,779) $ 148,101 $ 2,838		December 31, 2023 115,169 (24,378) 90,791 68		June 30, 2023 191,522 (28,283)
					163,239
					1,192

For details on trade receivables and allowance for impairment, please refer to note 6(c).

(o) Remunerations to employees, directors and supervisors

The Company’ s Articles of Incorporation require that earnings shall first be offset against any deficit, then, a minimum of 1% will be distributed as employee remuneration, and a maximum of 2% will be allocated as remuneration to directors. Employees who are entitled to receive the abovementioned employee remuneration, in share or cash, include the employees of the Company’s subsidiaries who meet certain specific requirements.

(Continued)

For the three months and the six months ended June 30, 2024 and 2023, remuneration of employees of $410 thousand, $526 thousand, $650 thousand, and $661 thousand, respectively, and remuneration of directors of $320 thousand, $745 thousand, $750 thousand, and $1,000 thousand, respectively, were estimated on the basis of the Company’s net profit before tax, excluding the remuneration of employees and directors of each period, multiplied by the percentage of remuneration of employees and directors as specified in the Company’s articles of incorporation. Such amounts were recognized as operating expenses for the six months ended June 30, 2024 and 2023, Management is expecting that the differences, if any, between the actual distributed amounts and estimated amounts will be treated as changes in accounting estimates and will be charged to profit or loss. The number of shares to be distributed was calculated based on the closing price of the Company’s ordinary shares, one day prior to Board of Directors meeting.

The amount of employee compensation for the year 2023 as resolved by the Board of Directors is consistent with the amount estimated in the 2023 individual financial statements. However, the amount of compensation for directors and supervisors as resolved by the Board of Directors differs by $600 thousand from the amount estimated in the 2023 individual financial statements. This discrepancy is mainly due to differences in the company's accounting estimates and will be recognized in the 2024 profit and loss. In the fiscal year 2022, there was a difference of $488 thousand and $500 thousand between the amount of remuneration approved by the Board of Directors for employees, directors, and supervisors and the estimated amount accrued for the fiscal year 2022. This difference primarily arises from accounting estimates made by the Company and has been recognized in the income statement for the fiscal year 2023.

(p) Non-operating income and expenses
Other income

For the three months ended June 30 2024 2023 $ 4,644 1,372 127 33 $ 4,771 1405	For the six months ended June 30	For the six months ended June 30
2024 $ 4,644 127 $ 4,771	2024 7,399 191 7,590	2023
		1,940 66
		2006

Other gains and losses

er gains and losses
For the three months ended June 30 2024 2023 Foreign exchange gains (losses) $ 7,483 20,994 Gains on disposals of property, land and equipment - 9 Gains (losses) on financial assets at fair value through profit or loss 1,412 2,172 Disposal of investment losses 37 Others (12) 369 $ 8,920 23,544 ance costs For the three months ended June 30 2024 2023 Interest expense $(88) (123)	For the three months ended June 30		For the six months ended June 30
		2023	2024 2023 21,014 20,097 - 9 6,646 9,550 37 31 361 18,728 30,017 For the six months ended June 30	2023 20,097 9 9,550 361 30,017
		20,994 9 2,172 369
		23,544
			2024 (172)	2023
				(287)

Finance costs

(Continued)

(q) Financial instruments

1. Credit risk

(i) Credit risk exposure

The carrying amount of financial assets and contract assets represents the maximum amount exposed to credit risk.

(ii) Concentration of credit risk

The Group has a broad customer base and does not engage in significant transactions with any single customer. Additionally, its sales are geographically diversified. Therefore, there is no significant concentration of credit risk.

(iii) Receivables and debt securities

For credit risk exposure of trade receivables and notes receivable, please refer to note 6(c). Other financial assets at amortized cost include other receivables. All of these financial assets are considered to have low risk, and thus, the impairment provision recognized during the period was limited to 12-month expected credit losses. The fixed deposits held by the group are transacted with and settled by financial institutions that have investment-grade ratings or above. Therefore, they are considered to have low risk.

The loss allowances were determined as follows:

Balance at January 1, 2024 Balance at June 30, 2024 Balance at January 1, 2023 Balance at June 30, 2023	Other receivables
	$ 36,992
	$ 36,992
	$ 36,992
	$ 36,992

(Continued)

2. Liquidity risk

The following table shows the contractual maturities of financial liabilities, including estimated interest payments and excluding the impact of netting agreements.

Carrying amount Contractual cash flows Within 6 months 6-12 m	onths	-2 years 2	-5 years	Over 5 years
$ 5,000 5,008 5,008 187,124 187,124 187,124 6,779 7,138 1,275	- - 1,280	- - 4,547	- - 3	- - 6 -
$ 198,903 199,270 193,407	1,280	4,547	36
$ 15,000 15,143 5,059 108,230 108,230 108,230 7,521 7,864 1,186 $ 130,751 131,237 114,511	10,048 - 1,213 11,261	- - 4,766 4,766	- - 69	- - 9 -
			699
$ 20,000 20,067 20,0067 298,222 298,222 298,222 5,540 5,859 1,385 $ 323,762 322,234 319,674	- 585 585	- 2,509	- - - 1380 - 1,380	- - -
		2,509

The Group does not expect the cash flows included in the maturity analysis to occur significantly earlier or at significantly different amounts.

Market risk
(i) Currency risk

The Group’s significant exposure to foreign currency risk was as follows:

Financial assets Monetary items USD : NTD USD : CNY Non-monetary items USD Financial liabilities Monetary items USD : NTD	June 30, 2024	December 31, 2023

The Group’s exposure to foreign currency risk arises from the translation of the foreign currency exchange gains and losses on cash and cash equivalents, trade and other receivables, financial assets at fair value through other comprehensive income, and trade and other payables that are denominated in foreign currency.

A strengthening (weakening) of 0.5%of the NTD against the USD, and CNY as at six months of 2023 and 2021 would have increased (decreased) the net profit after tax by $3,895

(Continued)

thousand and $596 thousand, and the equity by $156 thousand and $155 thousand. The analysis is performed on the same basis.

Since the Group has many kinds of functional currency, the information on foreign exchange gain (loss) on monetary items is disclosed by total amount. For the six months ended June 30, 2024 and 2023, the foreign exchange gain (loss) (including realized and unrealized portions) amounted to $12,014 thousand and $20,097 thousand, respectively.

(ii) Interest rate analysis

Please refer to the notes on liquidity risk management and interest rate exposure of the Group's financial assets and liabilities.

The following sensitivity analysis is based on the exposure to the interest rate risk of derivative and non-derivative financial instruments on the reporting date. Regarding assets with variable interest rates, the analysis is based on the assumption that the amount of assets outstanding at the reporting date was outstanding throughout the year. The rate of change is expressed as the interest rate increases or decreases by 0.5% when reporting to management internally, which also represents the Group management's assessment of the reasonably possible interest rate change.

If the interest rate had increased / decreased by 0.5% basis points, the Group’s net income would have increased / decreased by $10 thousand and $40 thousand for the six months ended June 30, 2024 and 2023, respectively, with all other variable factors remaining constant. This is mainly due to the Group’s borrowing at variable rates.

(iii) Other market price risk

For the six months ended June 30, 2024 and 2023, the sensitivity analyses for the changes in the securities price at the reporting date were performed using the same basis for profit or loss as illustrated below:

For the six months ended June 30, 2024 2023 Prices of securities at the reporting date Other comprehensive income after tax Net income Other comprehensive income after tax Net income	For the six months ended June 30,	For the six months ended June 30,	For the six months ended June 30,	For the six months ended June 30,	For the six months ended June 30,
	2024 2023
			Net income Other comprehensive income after tax		Net income
0.5% increase $ 0.5% decrease $		86 (86)	125 (125)	79 (79)	119 (119)

Fair value of financial instruments
(i) Fair value hierarchy

The carrying amount and fair value of the Group’s financial assets and liabilities, including the information on fair value hierarchy were as follows; however, except as described in the following paragraphs, for financial instruments not measured at fair value whose carrying amount is reasonably close to the fair value, and lease liabilities, disclosure of fair value information is not required:

(Continued)

	June 30, 2024	June 30, 2024	June 30, 2024	Total 31,252 864
Book Value	Level 1	Fair Value
		Level 2 - -	Level 3 - -
$ 31,252 864	31,252 864
32,116	32,116	-	-	32,116
39,069 17,258	- -	39,069 17,258	- -	39,069 17,258
56,327	-	56,327	-	56,327
$ 88,443	32,116	56,327		56,327
620,555 148,101 5,168 323	- - -	- - -	- - -	- - -
774,147
$ 862,590	32,116	56,327		88,443
$ 5,000 105,465 81,659 6,779 4,756	- - - - -	- - - - -	- - - - -	- - - - -
$ 203,659

		December 31, 2023	December 31, 2023	December 31, 2023	December 31, 2023	Total 30,174 3,558 785 34,517
Book Value $ 30,174 3,558 785 34,517 42,090 15,546 57,636 $ 92,153			Fair	Value
		Level 1 30,174 3,558 785 34,517	Level 2 - - - - 42,090 15,546		Level 3
$ $					- - -
					-
	42,090 15,546	- -			- -	42,090 15,546
	57,636	-	57,636		-	57,636
	92,153	34,517	57,636		-	57,636

(Continued)

516,703 - - 90,791 - - 1,662 - - 310	- - -	- - -
609,466
$ 701,619 34,517 57,636		92,153
$ 15,000 - - 75,697 - - 32,533 - - 7,521 - - 4,756 - -	- - - - -	- - - - -
$ 135,507

	June 30, 2023	June 30, 2023	June 30, 2023	Total 25,525 3,456 686 29,667
Book Value		Fair Value
	Level 1	Level 2 - - - - 38,855 15,743	Level 3
$ 25,525 3,456 686 26,667 38,855 15,743	25,525 3,456 686 29,667		- - - - - -
	- -			38,855 15,743
54,598	-	54,598	-	54,598
$ 84,265	29,667	54,598		84,265
296,628 163,239 2,022 890	- - -	- - -	- - -	- - -

462,779
$ 547,004	29,667	54,598		84,265

Financial liabilities measured at amortized cost

(Continued)

Bank loans Trade payables Other payables Lease liabilities (including non- current) Guarantee deposits received (Recognition of other non-current liabilities) Total	$ 20,000 - - 127,134 - - 171,088 - - 5,540 - - 8,017 - -	- - - - -	33 - - - - -
	$ 331,779

(ii) Valuation techniques for financial instruments measured at fair value

A financial instrument is regarded as being quoted in an active market if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency and those prices represent actual and regularly occurring market transactions on an arm’s-length basis. Whether transactions are taking place ‘regularly’ is a matter of judgment and depends on the facts and circumstances of the market for the instrument.

Quoted market prices may not be indicative of the fair value of an instrument if the activity in the market is infrequent, the market is not well-established, only small volumes are traded, or bid-ask spreads are very wide. Determining whether a market is active involves judgment.

Measurements of fair value of financial instruments without an active market are based on valuation technique or quoted price from a competitor. Fair value, measured by using valuation technique that can be extrapolated from either similar financial instruments or discounted cash flow method or other valuation techniques, including models, is calculated based on available market data at the reporting date.

(iii) Transfers between Level 1 and Level 2

There were no transfers from level 2 to level 1 for the six months ended June 30, 2024 and 2023.

(r)Financial risk management

There were no significant changes in the Group's financial risk management and policies as disclosed in note6(r) to the consolidated financial statements for the year ended December 31, 2023.

(s) Capital management

Management believes that the objectives, policies and processes of capital management of the Group has been applied consistently with those described in the consolidated financial statements for the year ended December 31, 2023. Also, management believes that there were no significant changes in the Group's capital management information as disclosed for the year ended December 31, 2023. Please refer to note6(s) to the consolidated financial statements for the year ended December 31, 2023 for further details.

(t) Investing and financing activities not affecting the current cash flow

To obtain the right to use assets through a leasing arrangement, please refer to note 6(f).

(Continued)

7. Related-party transactions

(a) Names and relationships with related parties

The followings are entities that have had transactions with related party during the periods covered

Name of related party Relationship with the Group CHU-TING CORP Chairman of this company is the same as the Chairman of the other company.

Lin, I-Chin Chairman of this company LIN, WEN-TENG Director of this company Sunrise On The Bund The chairman of the subsidiary is the same as the chairman of the Hotel(Sunrise) Company. PU HWUA ENTERPRISE CO., The chairman of the subsidiary is the same as the chairman of the LTD.(Pu Hwua) Company. Juyang Xingye Industrial Co., The chairman of the Company is also a director of the subsidiary. Ltd. ( Juyang Xingye)

Juiye Enterprise Co., Ltd.(Juiye The chairman of the company is a director of the company. Enterprise)

in the consolidated financial statements.

(b) Significant transactions with related parties
Sales

The amounts of significant sales by the Group to related parties were as follows:

Other related parties	For the three months ended June 30 2024 2023 $ 883 1,356	For the six months ended June 30	For the six months ended June 30
	2024 $ 883	2024 1,697	2023 2,783

The sales price of the group to the related party is not significantly different from the general selling price. The average credit period for related parties as of June 30, 2024, and January 1 to June 30, 2023, is approximately 120 days, while for general customers, it ranges from 30 to 90 days.

Receivables from related parties

The receivables from related parties were as follows:

Account Trade receivables	Relationship Other related parties	June 30, 2024 $ 596	December 31, 2023 955	June 30, 2023
				1,422

Payables to related parties

The payables to related parties were as follows:

Account Other payables	Relationship Others	June 30, 2024 $ 30	December 31, 2023 108	June 30, 2023
				519

(Continued)

4. Leases

The Group collected rental income from other related parties and affiliated companies, reporting lease income of $430 thousand, $430 thousand, $860 thousand and $859 thousand for the three months and the six months ended June 30, 2024 and 2023 respectively. As of June 30, 2024, December 31, 2023, and June 30, 2023, related rental deposits amounted to $405 thousand.

In November 2022, the Group rented an office building from the Key management person to be used as its headquarter. A five-year lease contract was signed, in which the rental fee is determined based on nearby office rental rates. The total value of the contract was $5,309 thousand. For the three months and the six months ended June 30, 2024, and 2023 respectively, the Group recognized the amounts of $31 thousand, $37 thousand, $63 thousand and $76 thousand as interest expenses. As of June 30, 2024 and 2023 respectively the balance of lease liabilities amounted to $3,607 thousand and $4,429 thousand.

5. Other

The combined company's operating expenses related to other related parties the three months and the six months ended June 30, 2024, and 2023 were $339 thousand, $960 thousand, $707 thousand, and $1,426 thousand, respectively.

(c) Others

In case of registering real estate under the name of other related parties, please refer to Note 6(7) for details.

(d) Key management personnel compensation

Key management personnel compensation comprised:

For the three months ended June 30 2024 2023 $ 4,201 3,718 86 23 $ 4,287 3,741	For the six months ended June 30	For the six months ended June 30
2024 $ 4,201 86 $ 4,287	2024 10,705 124 10,829	2023
		7,406 47
		7,453

8. Assets pledged as security

The carrying amounts of assets pledged as security were as follows:

Assets pledged as security Property, plant and equipment Investment property	Liabilities secured by pledge Long-term borrowings Long-term borrowings	June 30, 2024 $231,062 50,056 $281,118	December 31, 2023 232,298 50,605 282,903	June 30, 2023
				233,865 51,154
				285,019

9. Significant Commitments and Contingencies

(a) Unrecognized contractual commitments

As of June 30, 2024, December 31, 2023, and June 30, 2023, the detailed amounts of the contract prices for equipment and construction projects entered into by the Group with suppliers are as follows:

(Continued)

Signed-contract Paid-price	June 30, 2024 $ 33,422 $ 22,470	December 31, 2023 13,764 9,038	36 June 30, 2023 19,308 8,370

(b) In September 2023, the subsidiary Zhejiang Rectron signed a relocation compensation agreement with Jiashan Economic Development Zone Asset Management Co., Ltd., based on the strategic transformation needs of its industrial park. The agreed compensation amount was $691,875 thousand (RMB 161,653 thousand), and a signing bonus of $356,849 thousand (RMB 80,827 thousand) was received in the same year. Additionally, due to considerations for the group's overall planning, the decision was made to relocate to a new factory in another area within the same industrial park to continue operations. However, due to the delayed delivery of the new factory, both parties agreed to postpone the relocation schedule.

10. Losses due to major disasters: none

11. Subsequent events: none

12. Others

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

By function By item		For the three months ended June 30,	For the three months ended June 30,	For the three months ended June 30,	For the three months ended June 30,
		2024			2023
	Cost of sales	Operating expenses	Total	Cost of sales	Operating expenses	Total
Employee benefits Salary Labor and health insurance Pension Others Depreciation Amortization	5,028 314 122 110 9,648 121	20,389 1,869 1,045 958 2,756 656	25,417 2,184 1,167 1,068 12,404 777	4,792 314 134 499 9,774 61	25,016 1,726 1,415 1,134 3,027 626	29,808 2,040 1,549 1,633 12,801 687

By function By item		For the six months ended June 30,	For the six months ended June 30,	For the six months ended June 30,	For the six months ended June 30,
		2024			2023
	Cost of sales	Operating expenses	Total	Cost of sales	Operating expenses	Total
Employee benefits Salary Labor and health insurance Pension Others Depreciation Amortization	9,901 685 258 281 19,186 241	43,232 3,742 2,327 2,059 5,429 1,296	53,133 4,427 2,585 2,340 24,615 1,537	9,536 667 264 676 19,825 390	52,333 3,537 2,394 2,312 6,129 1,279	61,869 4,204 2,658 2,988 25,954 1,669

(b) Seasonality of operations

The Group's operations were not affected by seasonality or cyclicality factors.

13. Other disclosure items

(a) Information on significant transaction:

The followings were the information on significant transactions required by the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” for the Group for the six months ended June 30, 2024:

(Continued)

==> picture [439 x 118] intentionally omitted <==

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

1. Lending to other parties:
Highest
balance Collateral
of Actual Transaction
financing usage Range of Purposes amount for Reasons Allowance
to other amount interest of fund business for short- for bad Individual Maximum
Number Name of lender borrower Name of Account name Related party parties during the balance Ending during period the during the period rates financing borrower for the two parties between financing term debt Item Value loan limits funding financing limit of fund
period
1 Rectron China CHU-TING Other Yes 60,002 29,146 29,146 - 2 - Operation - - - 808,046 808,046
receivables (note 3) (note 4) Requirements
Note 1: For business transactions with counterparties, the business transaction amount is determined based on the cumulative
sales (or purchases) amount between the two parties over the preceding twelve months.
Note2: According tour policy, the calculation for the maximum total amount of loans granted are as follows:
Rectron Electronics (China)
----- End of picture text -----

Individual counterparty funding limit = Shareholders' equity x 200% = $404,023thousand x 200% = $808,046 thousand.

The maximum funding limit for an individual counterparty = Shareholders' equity x 200% = $404,023 thousand x 200% = $808,046 thousand.

Note3: Already eliminated during the preparation of the consolidated financial statements. Note 4: (1) Business transaction with counterparts exists.

(2) Short-term funding is necessary.

Guarantees and endorsements for other parties: None.
Information regarding securities held at the reporting date (subsidiaries, associates and joint ventures not included):

					(Amounts in Thousands of New Taiwan Dollar) June 30, 2024 Remark Carrying value Percentage of ownership (%) Market value ( or net value) 17,258 0.05% 17,258 25,720 -% 25,720 9,278 -% 9,278 4,071 - % 4,4071 864 -% 864 15,158 - % 15,158 16,094 - % 16,094	(Amounts in Thousands of New Taiwan Dollar) June 30, 2024 Remark Carrying value Percentage of ownership (%) Market value ( or net value) 17,258 0.05% 17,258 25,720 -% 25,720 9,278 -% 9,278 4,071 - % 4,4071 864 -% 864 15,158 - % 15,158 16,094 - % 16,094	(Amounts in Thousands of New Taiwan Dollar) June 30, 2024 Remark Carrying value Percentage of ownership (%) Market value ( or net value) 17,258 0.05% 17,258 25,720 -% 25,720 9,278 -% 9,278 4,071 - % 4,4071 864 -% 864 15,158 - % 15,158 16,094 - % 16,094	(Amounts in Thousands of New Taiwan Dollar) June 30, 2024 Remark Carrying value Percentage of ownership (%) Market value ( or net value) 17,258 0.05% 17,258 25,720 -% 25,720 9,278 -% 9,278 4,071 - % 4,4071 864 -% 864 15,158 - % 15,158 16,094 - % 16,094
Company holding securities	Security type and name	Relationship with the Company	Account		June 30, 2024			Remark
				Shares	Carrying value	Percentage of ownership (%)	Market value ( or net value)
The Company	Stock - Sunny Bank	-	Non-current financial assets at fair value through other comprehensive income	1,515,198	17,258	0.05%	17,258
The Company	Corporate bonds – Apple	-	Non-current financial assets at fair value through other comprehensive income	-	25,720	-%	25,720
The Company	Corporate bonds – AT&T	-	Non-current financial assets at fair value through other comprehensive income	-	9,278	-%	9,278
The Company	Corporate bonds – Pfizer	-	Non-current financial assets at fair value through other comprehensive income	-	4,071	- %	4,4071
CHU-TING	Fund – Yuan ta High Dividend 0056	-	Current financial assets at fair value through profit or loss	21,000	864	-%	864
CHU-TING	Stock - LMT	-	Current financial assets at fair value through profit or loss	1,000	15,158	- %	15,158
CHU-TING	Stock - NVDA	-	Current financial assets at fair value through profit or loss	4,000	16,094	- %	16,094

Information regarding purchase or sale of securities for the period exceeding 300 million or 20% of the Company’s paid-in capital: None.
Information regarding acquisition of real estate exceeding 300 million or 20% of the Company’s paid-in capital:

								(Amounts in Thousands	(Amounts in Thousands	(Amounts in Thousands	of New Taiwan Dollar)	of New Taiwan Dollar)	of New Taiwan Dollar)
Name of company	Type of property	Transact ion date	Transaction amount	Amount actually payable	Counter- party	Nature of relationship	For tr	ansactions involving related parties, the previous transfer information			Price reference	Purpose of Acquisit ion and Usage	Other terms
							owner	Relationship with the Issuer	Transfer Date	amount
The Company	Land and Building	2024.1.10	- (Note 1)	- (Note 1)	CHU- TING	Parent- subsidiary relationship	-	-	-	-	Appraisal	private use	None
CHU-TING	Land	2024.1.10	- (Note 1)	- (Note 1)	The Company	Parent- subsidiary relationship	-	-	-	-	Appraisal	private use	None

Note 1: A joint development agreement for the land located at Parcel No. 145, Pei Bo Section, Tucheng District, New Taipei City, Taiwan, has been signed with the following distribution ratio: Landowner (the company): approximately 45.66%, Developer (CHUTING): approximately 54.34%. The final joint development ratio shall be subject to approval by the competent authority.

(Continued)

Information regarding receivables from disposal of real estate exceeding 300 million or 20% of the Company’s paid-in capital: None.

								(Amounts in Thousands of New Taiwan Dollar)	(Amounts in Thousands of New Taiwan Dollar)	(Amounts in Thousands of New Taiwan Dollar)	(Amounts in Thousands of New Taiwan Dollar)	(Amounts in Thousands of New Taiwan Dollar)
Name of company	Type of property	Transacti on date	Acquisition date	Book value	Transacti on amount	Amount actually received	Gain from disposal	Counter- party	Nature of relatio nship	Purpose of disposal	Price reference	Other terms
Zhejiang Rectron	Land, Buildings, and Structures	2023.9.22	90.08	177,168 (Note 1)	691,875 (Note 2)	356,849 (Note 3)	(Note 4)	Jiashan Economic Development Assets Management Co., Ltd.	None	To align with organic renewal and industry transformati on and upgrading	Appraisal Report	(Note 5)

Note 1:RMB40,925 thousand

Note 2:RMB161,653 thousand

Note 3:RMB80,827 thousand

Note 4: Profit and loss shall be confirmed after all relocation procedures are completed.

Note 5: Receive compensation payments according to the relocation compensation agreement.

Information regarding related-party purchases and/or sales exceeding 100 million or 20% of the Company’s paid-in capital:

							(Amounts in Thousands of New Taiwan Dollar)	(Amounts in Thousands of New Taiwan Dollar)	(Amounts in Thousands of New Taiwan Dollar)	(Amounts in Thousands of New Taiwan Dollar)	(Amounts in Thousands of New Taiwan Dollar)
Company name	Related party	Nature of relationship		Transa	ction details		Abno transa	rmal ction	Trade receivables (payables) and notes receivable (payable)		Remark
			Item	Amount	Percentage of the purchases (sales) (%)	Payment term	Unit price	Payment terms	Ending balance	Percentage of total receivables (payables)
The Company Rectron China Rectron China Zhejiang Rectron	Rectron China The Company Zhejiang Rectron Rectron China	Parent-subsidiary relationship Parent-subsidiary relationship Investee companies that are also evaluated using the equity method by the Company Investee companies that are also evaluated using the equity method bythe Company	Purchase Sales Purchase Sales	138,246 (136,246) 119,887 (119,887)	67% (100)% 100% (72)%	Normal Normal Normal Normal	Normal Normal Normal Normal	90-120 Days 90-120 Days 120 Days 120 Days	(137,214) 137,214 (78,085) 78,085	(81)% 99% (100)% 69%

Note: The amount had been offset in the consolidated financial statements.

Information regarding receivables from related parties exceeding 100 million or 20% of the Company’s paid-in capital: None.