RECTRON - Interim / Quarterly Report 2024

Stock Code：2302

Rectron Ltd. AND SUBSIDIARIES

Consolidated Financial Statements

With Independent Auditors’ Review Report

For the Nine Months Ended September 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 12~34 34~35 36 36 36 36 36~37 37~39 39 40 40 40~42

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
36
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39
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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 September 30, 2024 and 2023, and the related consolidated statements of comprehensive income, changes in equity and cash flows for the Nine Months ended September 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 $211,819 thousand and $219,232 thousand, constituting 8% and 11% of consolidated total assets as of September 30, 2024 and 2023, respectively, total liabilities amounting to $7,646 thousand and $12,470 thousand, constituting 1% and 4% of consolidated total liabilities as of September 30, 2024 and 2023, respectively, and total comprehensive income (loss) amounting to $(4,943) thousand, $(711)thousand, $(7,684)thousand and $4,135 thousand, constituting (24)%, (2)%, (10)% and 7% of consolidated total comprehensive income (loss) for the three months and the Nine Months ended September 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 September 30, 2024 and 2023, and of its consolidated financial performance and its consolidated cash flows for the Nine Months ended September 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 $57,181 thousand and $22,008 thousand, representing 2% and 1% of the related consolidated total assets as of September 30, 2024 and 2023, and net sales of $843 thousand, $936 thousand, $2,221 thousand and $3,037 thousand, representing 0%, 1%, 0% and 1% of the related consolidated total net sales for the three months and the Nine Months ended September 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) November 13, 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

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

	September 30,	December 31, 2023	September 30, 2024 Amount % $ 3,000 - 1,221 - 126,668 5 215,563 8 7,709 - 2869 - 366,352 15 723,382 28 5,634 - 1,076 - 62,684 3 4,752 - 74,146 3 797,528 31 1,663,029 64 9 - 60,655 2 87,143 3 63,834 3 (71,444 ) (3) 1,803,226 69 $ 2,600,754 100	September 30, 2024 Amount % $ 3,000 - 1,221 - 126,668 5 215,563 8 7,709 - 2869 - 366,352 15 723,382 28 5,634 - 1,076 - 62,684 3 4,752 - 74,146 3 797,528 31 1,663,029 64 9 - 60,655 2 87,143 3 63,834 3 (71,444 ) (3) 1,803,226 69 $ 2,600,754 100	September 30, 2023
			Amount $ 3,000 1,221 126,668 215,563 7,709 2869 366,352 723,382 5,634 1,076 62,684 4,752 74,146 797,528 1,663,029 9 60,655 87,143 63,834 (71,444 )		Amount % 15,000 1 463 - 137,020 7 41,281 2 8,633 - 1182 - 1,685 - 3205,264 10 3,767 - 2,380 - 62,679 3 8,119 - 67,945 3 282,209 13 1,663,029 81 9 - 51,988 3 60,074 3 80,251 4 (77,729) (4) 1,777,622 87 2,059,831 100
$ $	Amount 631,770 16,1867 310 134,056 3,021 436 23,534 15,130 3,7243 928,167 56,734 636,483 16,797 958,780 - 2,793 1,672,587 2,600,7547	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




				1,803,226 2,600,754
			$

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 Nine Months ended September 30, 2024 and 2023 (Expressed in Thousands of New Taiwan Dollar, except for Earnings per Common Share)

	For the three months ended	For the three months ended
$ $ $	2024 $ 201,799 129,525 72,274 16,300 31,043 1,807 49,150 23,124 5,365 (11,438) (51) (6,124) 17,000 3,590 13,410 (105) - (105) 4,622 2,670 - 7,292 7,187 20,597 31,410 20,597	% 100 64 36 8 15 1 24 12 3 (6) - (3) 9 2 7 - - - 2 1 - 3 3 10













		7 10

		0.08 0.08

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 Nine Months ended September 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) - - (14,583) (3,072) (14,583) (3,072) - - (69,736) (7,993) (83,104) (4,039) - - 13,474 2,225 13,474 2,225 - - (69,630) (1,814)
$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 79,279 - 79,279 (17,624) (25,150) (133,042) 80,251 87,640 63,484 - 63,484 (8,666) (27,069) (51,554) 63,834	(55,153) - (14,583) (14,583) - (69,736) (83,104) - 13,474 13,474 - (69,630)	(60,074) - (17,655) (17,655) - (77,729) (87,143) - 15,699 15,699 - (71,444)	1,849,404 79,279 (17,655) 61,624 (133,042) 1,777,622 1,775,597 63,484 15,699 79,183 (51,554) 1,803,226



$

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 Nine Months ended September 30, 2024 and 2023 (Expressed in Thousands of New Taiwan Dollars)

For	the Nine Months ended September 30,	the Nine Months ended September 30,
	2024	2023
$	79,634 37,146 2,285 (2,279) 223 (12,213) (742) - (37) (7,313) 174 (2,071)	100,629 38,507 2,943 (1,844) 481 (3,430) (438) (9) - (11,390) (1,617) -
	15,173	23,203
$	107 (41,403) (1,415) 12,044 (8,247) (463)	1,883 5,371 1,580 291 16,056 (319)
	(39,377)	24,862
	1,153 50,971 2,965 265 (1,133)	(1,478) 7,482 5,219 419 (1,239)
	54,221 14,844 30,017	10,513
		35,375
		58,578
	109,651 12,229 742 (243) (15,458))	159,207 3,230 438 (482) (36,093)
	106,894 - 3,259 (24,341) 49,985 (20,372) - (1,309)	126,300
		(3,176) - (14,916) 32,902 (5,180) 78 (375) 9,333 60,000 (75,000) (2,417) 743 (133,042)
	(7,222)
	8,000 (20,000) (1,788) (4) (51,554) (65,346)
		(149,716)
	(21,297) 70,067 561,703 631,770	(8,696) (22,779) 245,962
		223,183

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

September 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 Nine Months ended September 30, 2024 and 2023were authorized for issuance by the board of directors on November 13, 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
September
30, 2024
December
31, 2023
September
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) Income tax

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

(Continued)

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) 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.

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	September 30, 2024	December 31, 2023	September 30, 2023
	$ 144 590,481 41,145	295 533,774 27,634	275 206,773 16,135
	$ 631,770	561,703	223,183

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

(b) Financial assets
Current financial assets at fair value through profit or loss

(Continued)

13 September 30, 2024 December 31, 2023 September 30, 2023 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 15,374 5,296 - Shares of stock of overseas listed companies - OXY - 14,446 15,128 Shares of stock of listed companies -TSMC - 5,382 3,242 Assets mandatorily measured at fair value through profit or loss: Beneficiary certificates 812 785 691 Total $ 16,186 34,517 19,061 2. Non-current financial assets at fair value through other comprehensive income September 30, 2024 December 31, 2023 September 30, 2023 Debt investments at fair value through other comprehensive income Corporate bonds– Apple $ 26,635 25,735 24,838 Corporate bonds – AT&T 9,680 9,114 8,385 Corporate bonds–Pfizer 4,266 4,121 3,9863. Corporate bonds–SocGen - 3,090 3,225 Equity investments at fair value through other comprehensive income Shares of stock of unlisted companies 17,153 15,546 15,516 Total $ 57,734 57,636 55,950	13 September 30, 2024 December 31, 2023 September 30, 2023 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 15,374 5,296 - Shares of stock of overseas listed companies - OXY - 14,446 15,128 Shares of stock of listed companies -TSMC - 5,382 3,242 Assets mandatorily measured at fair value through profit or loss: Beneficiary certificates 812 785 691 Total $ 16,186 34,517 19,061 2. Non-current financial assets at fair value through other comprehensive income September 30, 2024 December 31, 2023 September 30, 2023 Debt investments at fair value through other comprehensive income Corporate bonds– Apple $ 26,635 25,735 24,838 Corporate bonds – AT&T 9,680 9,114 8,385 Corporate bonds–Pfizer 4,266 4,121 3,9863. Corporate bonds–SocGen - 3,090 3,225 Equity investments at fair value through other comprehensive income Shares of stock of unlisted companies 17,153 15,546 15,516 Total $ 57,734 57,636 55,950	13 September 30, 2024 December 31, 2023 September 30, 2023 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 15,374 5,296 - Shares of stock of overseas listed companies - OXY - 14,446 15,128 Shares of stock of listed companies -TSMC - 5,382 3,242 Assets mandatorily measured at fair value through profit or loss: Beneficiary certificates 812 785 691 Total $ 16,186 34,517 19,061 2. Non-current financial assets at fair value through other comprehensive income September 30, 2024 December 31, 2023 September 30, 2023 Debt investments at fair value through other comprehensive income Corporate bonds– Apple $ 26,635 25,735 24,838 Corporate bonds – AT&T 9,680 9,114 8,385 Corporate bonds–Pfizer 4,266 4,121 3,9863. Corporate bonds–SocGen - 3,090 3,225 Equity investments at fair value through other comprehensive income Shares of stock of unlisted companies 17,153 15,546 15,516 Total $ 57,734 57,636 55,950	13 September 30, 2024 December 31, 2023 September 30, 2023 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 15,374 5,296 - Shares of stock of overseas listed companies - OXY - 14,446 15,128 Shares of stock of listed companies -TSMC - 5,382 3,242 Assets mandatorily measured at fair value through profit or loss: Beneficiary certificates 812 785 691 Total $ 16,186 34,517 19,061 2. Non-current financial assets at fair value through other comprehensive income September 30, 2024 December 31, 2023 September 30, 2023 Debt investments at fair value through other comprehensive income Corporate bonds– Apple $ 26,635 25,735 24,838 Corporate bonds – AT&T 9,680 9,114 8,385 Corporate bonds–Pfizer 4,266 4,121 3,9863. Corporate bonds–SocGen - 3,090 3,225 Equity investments at fair value through other comprehensive income Shares of stock of unlisted companies 17,153 15,546 15,516 Total $ 57,734 57,636 55,950

			55,950

(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 September 30, 2024 December 31, 2023 and September 30, 2023. The effective interest rates range respectively from 2.00% to 4.01%, 2.00% to 4.90%, and 2.00% to 4.90%, and the maturity dates range from 2036 to 2045. The

(Continued)

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 September 30, 2024, December 31, 2023 and September 30, 2023, the Group’s financial assets were not pledged as collateral.

(c) Trade receivables and notes receivable

) Trade receivables and notes receiv	ab	le
Notes receivable from operating activities Trade receivables Trade receivables–Non-current Less: Loss allowance	$	September 30, 2024 310 157,053 48,227 (71,224) $ 134,336	December 31, 2023 417 114,752 48,227 (72,605) 90,791	September 30, 2023 200 179,368 48,227 (74,745) 153,050
				2023

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:

September 30, 2024	September 30, 2024
Gross carrying amount $ 107,778 26,764 71,048 $ 205,590	Weighted- average loss rate 0.05%~1.98% 0.05%~9.64% 0%~100%	Loss allowance provision
		176 71,048
		71,224

(Continued)

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

Gross carrying amount $ 107,758 25,576 74,461 $ 227,795	Weighted- average loss rate 0.05%~1.81% 0.05%~8.68% 0%~100%	Loss allowance provision
		- 344 74,401
		74,745

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

For the Nine Months ended September 30,	For the Nine Months ended September 30,	For the Nine Months ended September 30,
	2024 72,605 (2,279) - 898 71,224	2023 78,794 (1,844) (3,401) 1,196 74,745
$
$

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

(Continued)

(d) Inventories

entories
September 30, 2024 Raw materials and consumables 26,648 Work in progress 13,295 Finished goods 68,086 Merchandise 30,033 Goods and materials in transit 1,468 Subtotal 139,530 Less: Allowance for inventory market decline and obsolescence (15,996) 123,534	September 30, 2024	December 31, 2023	September 30, 2023
	26,648 13,295 68,086 30,033 1,468	24,914 19,707 76,590 28,176 2,614	30,469 20,250 78,598 28,013 1,538
		152,001 (16,423)	158,868 (17,445)
	123,534	135,578	414,413

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

For the three months ended September 30, 2024 2024 $ 127,971 $ 113,105 (929) (2,965) 761 849 $ 127,803 116,919	For the three months ended September 30, 2024 2024 $ 127,971 $ 113,105 (929) (2,965) 761 849 $ 127,803 116,919	For the Nine Months ended September 30,	For the Nine Months ended September 30,
		2023 343,915 (427) 5,259	2023 361,630 1,112 1425 364.167

$ 127,803	116,919	348,747

(1) Reversal gains were generated from inventory depletion during the periods from the three months and the Nine Months ended September 30, 2024 and 2023 respectively.

(2)As of September 30, 2024, December 31, 2023 and September 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 Nine Months ended September 30, 2024 and 2023 were as follows:

	Land	Machinery and equipment	Total
$ $ $ $ $ $ $ $ $ $ $ $	181,394 - - -	677,096 2,291 1,941 16,370 697,698 686,790 - (691) - (1,691) 684,408 531,955 17,670 14,104 563,729 518,023 18,075 (622) (1,748) 533,728 145,141 133,969 168,767 150,680	1,177,102 200,457 (2,071) 25,693 1,401,181 1,191,949 5180 (691) (4,888) (2,781) 1,188,769 718,515 27,516 18,667 764,698 694,112 28,326 (622) (2,347) 719,469 458,587 636,483 497,837 469,300
	181,394
	181,394 - - - -
	181,394
	- - -
	-
	- - - -
	-
	181,394
	181,394
	181,394
	181,394

As of September 30, 2024, December 31, 2023 and September 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 Additions Effect of movement in exchange rates Balance at September 30, 2024	Land $ 9,906 419 $ 10,325	Buildings 12,826 414 13,240	Machinery and equipment - 2,514 - 2,514	Other equipment 343 - 343	Total
					23,075 2,514 833
					26,422

(Continued)

Land Balance at January 1, 2023 $ 10,196 Additions - Reduction Effect of movement in exchange rates (74) Balance at September 30, 2023 $ 10,122 Accumulated depreciation and impairment losses: Balance at January 1, 2024 $ 1,250 Depreciation for the year 233 Effect of movement in exchange rates 67 Balance at September 30, 2024 $ 1,820 Balance at January 1, 2023 $ 1,252 Depreciation for the year 232 Reduction - Effect of movement in exchange rates (8) Balance at September 30, 2023 $ 1,476 Carrying amount: Balance at January 1, 2024 $ 8,386 Balance at September 30, 2024 $ 8,505 Balance at January 1, 2023 $ 8,944 Balance at September 30, 2023 $ 8,646		Buildings 12,827 - 638 13,465 5,724 1,723 162 7,609 6,408 2151 - 408 8,967 7,102 5,631 6,419 4,498	Machinery and equipment 1,442 - (1,442) - - - 70 - 70 1,202 240 (1,442) - - - 2,444 240 -	Other equipment - 343 - 343 72 54 - 126 - 54 - - 54 271 217 - 289		Total
						24,465 343 (1,442) (217)
						23,149
						7,316 2,080 229
						9,625
						8,862 2,677 (1,442) 400
						10,497
						15,759 16,797 15,603 13,433

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 September 30, 2024 Balance at January 1, 2023 Effect of movement in exchange rates Balance at September 30, 2023	Land and improvements $ 663,510 - $ 663,510 $ 663,510 - $ 663,510	Buildings 373,879 3,540 377,419 376,331 (623) 375,708	Total
			1,037,389 3,540
			1,040,929
			1,039,841 (623)
			1,039,218

(Continued)

Accumulated depreciation and impairment losses: Balance at January 1, 2024 Depreciation for the year Effect of movement in exchange rates Balance at September 30, 2024 Balance at January 1, 2023 Depreciation for the year Effect of movement in exchange rates Balance at September 30, 2023 Carrying amount: Balance at January 1, 2024 Balance at September 30, 2024 Balance at January 1, 2023 Balance at September 30, 2023	Land and improvements $ - - - $ - $- - - $- $ 663,510 $ 663,510 $ 663,510 $ 663,510	Buildings 73,500 7,550 1,099 82,149 64,163 7,504 (131) 71,536 300,379 295,270 312,168 304,172		Total
				73,500 7,550 1,099
				82,149
				64,163 7,504 (131)
				71,536
				963,889 958,780 975,678 967,682

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 September 30, 2024, December 31, 2023 and September 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

September 30, 2024	December 31, 2023	September 30, 2023
$ 3,000	15,000	15,000
$ 417,000	385,000	385,000
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 Nine Months ended September 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 September 30 For the Nine Months Ended September 30	For the Three months Ended September 30 For the Nine Months Ended September 30	For the Three months Ended September 30 For the Nine Months Ended September 30	For the Three months Ended September 30 For the Nine Months Ended September 30
	2024	2023 3 - 8 11	2024	2023 11 2 22 35
	1 - 5 6		6 - 15 21

Defined contribution plans

The Group’s employee benefit retirement expenses respectively.

For the Three months Ended September 30	For the Nine Months Ended September 30	For the Nine Months Ended September 30
2024 2023	2024	2023 383 155 574 32 1,144
$ 118 127 51 55 208 205 - 11	371 144 609 11 1,135
$ 377 393

The detailed breakdown of retirement benefit expenses recognized by foreign subsidiaries in accordance with relevant local regulations is as follows:

Administration expenses	For the Three months Ended September 30	For the Nine Months Ended September 30
	2024 2023	2024 2023 2,635 2,617
	$ 823 734

(k) Income tax
The components of income tax for the Nine Months ended September 30, 2024 and 2023 were as follows:

(Continued)

Current tax expenses Surtax on unappropriated earnings Prior years income tax adjustment	For the three months ended September 30 2024 2023 $ 3,590 8,747 - - - - $3,590 8,747	For the three months ended September 30 2024 2023 $ 3,590 8,747 - - - - $3,590 8,747	21 For the Nine Months ended September 30 2024 2023 16,050 19,425 - 21 100 1,904 16,150 21,350
	2024 $ 3,590 - - $3,590		2024 16,050 - 100 16,150
		8,747 - - 8,747

(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 September 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 September 30, 2024, December 31, 2023, and September 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 the 2023 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 September 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 September 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) 13,474 - 13,474 - 2,225 2,225 $ (69,630) (1,814) (71,444) $ (55,153) (4,921) (60,074) (14,583) - 14,583) - (3,072) (3,072) $ (69,736) (7,993) (77,729)	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) 13,474 - 13,474 - 2,225 2,225 $ (69,630) (1,814) (71,444) $ (55,153) (4,921) (60,074) (14,583) - 14,583) - (3,072) (3,072) $ (69,736) (7,993) (77,729)
		(1,814) (71,444)
		(4,921) (60,074) - 14,583) (3,072) (3,072)
		(7,993) (77,729)

(Continued)

(m) Earnings per share

For the Nine Months ended September 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 September 30 2024 2023 $ 13,410 27,311	For the Nine Months ended September 30	For the Nine Months ended September 30
	2024 $ 13,410	2024 63,484	2023
			79,279

(ii) Weighted-average number Weighted-average number of ordinary shares(thousand shares) Earnings per share	of ordinary shares For the three months ended September 30 2024 2023 $ 166,303 166,303 0.08 0.16	For the Nine Months ended September 30	For the Nine Months ended September 30
		2024 166,303 0.38	2023
			166,303
			0.48

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 September 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

	For the three	months	For the Nine	Months ended
	ended September 30		September 30
	2024	2023	2024	2023
Profit/(loss) attributable to ordinary shareholders of the Company (basic)	$ 13,410	27,311	63,484	79,279
(ii) Weighted-average number of ordinary shares
	For the three	months	For the Nine Months ended
	ended September 30		September 30
	2024	2023	2024	2023
Weighted-average number of ordinary shares (thousand shares) (basic)	$166,303	166,303	166,303	166,303
Effect of employee share bonus	46	58	62	92
Weighted-average number of ordinary shares (thousand shares) (diluted)	166,349	166,361	166,365	166,395
Earnings per share	0.08	0.16	0.38	0.48

(n) Revenue from contracts with customers
i. Disaggregation of revenue

(Continued)

For the three months ended September 30, 2024

Electronics Division Primary geographical markets Asia $ 169,666 America 21,102 Europe 1,873 Others 324 $ 192,965 Major products/services lines Electronic Components Sales $192,965 Rental Income - Medical Equipment Sales - Wine Trading - $192,965	Property Management Division 6,016 - - - 6,016 - 6,016 - - 6,016	Medical Equipment Division 1,972 - - 1,972 - - 1,972 - 1,972	Wine Trading Department 846 - - -	Total
				178,500 21,102 1,873 324
			846	201,799
			- - - 846 846	192,965 6,016 1,972 846
				201,799

For the three months ended September 30, 2023

Electronics Division Primary geographical markets Asia $ 158,170 America 19,566 Europe 2,27 Others 249 $ 180,012	Property Management Division 7,190 - - - 7,190	Medical Equipment Division 2,841 - - - 2,841	Wine Trading Department 952 - - - 952	Total
				169,153 19,566 2,027 249
				190,995

(Continued)

For the three months ended September 30, 2023

For	the three months	ended September 30, 2023	25
Electronics Division Major products/services lines Electronic Components Sales $ 180,012 Rental Income - Medical Equipment Sales - Wine Trading - $ 180,012	Property Management Division - 7,190 - - 7,190	Medical Equipment Division Wine Trading Department - - - - 2,841 - - 952 2,841 952	Total
			180,012 7,190 2,841 952
			190,995

For the Nine Months ended September 30, 2024

Electronics Division Primary geographical markets Asia $ 459,876 America 60,650 Europe 4,567 Others 958 $ 526,051 Major products/services lines Electronic Components Sales $ 526.051 Rental Income - Medical Equipment Sales - Wine Trading - $ 333,086	Property Management Division 17,139 - - - 17,139 - 17,139 - - 11,123	Medical Equipment Division 6,768 - - - 6,768 - - 6,768 - 6,768	Wine Trading Department 2,519 - - -	Total
				486,302 60,650 4,567 958
			2,519	552,477
			- - - 2,519 2,519	526,051 17,139 6,768 2,519
				552,477

(Continued)

For the Nine Months ended September 30, 2023

Electronics Division Primary geographical markets Asia $ 469,734 America 56,114 Europe 7,428 Others 767 $ 534,043 Major products/services lines Electronic Components Sales $ 534,043 Rental Income - Medical Equipment Sales - Wine Trading - $ 534,043	Property Management Division 22,577 - - - 22,577 - 22,577 - - 22,577	Medical Equipment Division 12,607 129 - - 12,736 - - 12,736 - 12,736	Wine Trading Department 3,599 - - - 3,599 - - - 3,599 3,599	Total
				508,517 56,243 7,428 767
				572,955
				534,043 22,577 12,736 3,599
				572,955

ii. Contract balances

Trade receivables and notes receivable Less: allowance for impairment Contract liabilities	September 30, 2024 $ 157,363 (22,997 $ 134,366 $ 1,221		December 31, 2023 115,169 (24,378) 90,791 68		September 30, 2023 179,568 (26,518)	September 30, 2023 179,568 (26,518)

	$					153,050
	$					463

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 Nine Months ended September 30, 2024 and 2023, remuneration of employees of $190 thousand, $358 thousand, $840 thousand, and $1,019 thousand, respectively, and remuneration of directors of $150 thousand, $500 thousand, $900 thousand, and $1,500 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 Nine Months ended September 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 September 30 2024 2023 $ 4,814 1,490 551 37 $ 5,365 1,862	For the Nine Months ended September 30	For the Nine Months ended September 30
2024 $ 4,814 551 $ 5,365	2024 12,213 742 12,955	2023
		3,430 438
		3,868

Other gains and losses

er gains and losses
For the three months ended September 30 2024 2023 Foreign exchange gains (losses) $ (12,170) 4,401 Gains on disposals of property, land and equipment - - Gains (losses) on financial assets at fair value through profit or loss 667 1,840 Disposal of investment losses Others 65 (11) $(11,438) 6,230 ance costs For the three months ended September 30 2024 2023 Interest expense $(51) (194)	For the three months ended September 30		For the Nine Months ended September 30
		2023	2024 2023 (156) 24,498 - 9 7,313 11,390 37 96 350 18,728 36,247 For the Nine Months ended September 30	2023 24,498 9 11,390 350 36,247
		4,401 - 1,840 (11)
		6,230
			2024 (223)	2023
				(481)

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 September 30, 2024 Balance at January 1, 2023 Balance at September 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 years Over 5 years
$ 3,000 3,010 3,010 342,231 342,231 342,231 8,503 8,789 1,686	- - 1,700	- - 3,445	- - - - 1,958 -
$ 353,734 354,030 346,927	1,700	3,445	19,58
$ 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
$ 15,000 15,182 5,103 178,301 178,301 178,301 4,949 5,236 918 $ 198,250 198,719 184,322	10,079 - 615 585	- 2,625	- - - 1,078 - 1,078	- - -
		2,625

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	September 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 Nine Months of 2023 and 2021 would have increased (decreased) the net profit after tax by

(Continued)

$4,060 thousand and $3,088 thousand, and the equity by $162 thousand and $162 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 Nine Months ended September 30, 2024 and 2023, the foreign exchange gain (loss) (including realized and unrealized portions) amounted to $156 thousand and $24,498 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 $9 thousand and $45 thousand for the Nine Months ended September 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 Nine Months ended September 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 Nine Months ended September 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 Nine Months ended September 30,	For the Nine Months ended September 30,	For the Nine Months ended September 30,	For the Nine Months ended September 30,	For the Nine Months ended September 30,
	2024 2023
			Net income Other comprehensive income after tax		Net income
0.5% increase $ 0.5% decrease $		86 (86)	62 (62)	78 (78)	77 (77)

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)

		September 30, 2024	September 30, 2024	September 30, 2024	September 30, 2024
Book Value			Fair Value			Total 15,374 812
		Level 1	Level 2 - -		Level 3 - -
$ 15,374 812		15,374 812
16,186		16,186	-		-	16,186
40,581 17,153		- -	40,581 17,153		- -	40,581 17,153
57,734		-	57,734		-	57,734
631,770 134,366 3,021 1,404		- - -	- - -		- - -	- - -
770,561
$ 844,481		16,186	57,734			73,920
$ 3,000 126,668 215,563 8,503 4,752		- - - - -	- - - - -		- - - - -	- - - - -
$ 358,486
		December 31, 2023
Book Value $ 30,174 3,558 785 34,517 42,090 15,546 57,636				Fair	Value	Total 30,174 3,558 785 34,517
		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

(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

	September 30, 2023	September 30, 2023	September 30, 2023	Total 15,128 3,242 691 19,061
Book Value		Fair Value
	Level 1	Level 2 - - - - 40,434 15,516	Level 3 - - - - - -
$ 15,128 3,242 691 19,061 40,434 15,516	15,128 3,242 691 19,061
	- -			40,434 15,516
55,950	-	55,950	-	55,950
223,183 153,050 1,798 318	- - -	- - -	- - -	- - -
378,349
$ 453,360	19,061	55,950		75,011

(Continued)

			3
Financial liabilities measured at amortized cost Bank loans Trade payables Other payables Lease liabilities (including non- current) Guarantee deposits received (Recognition of other non-current liabilities) Total	$ 15,000 - - 137,020 - - 41,281 - - 4,949 - - 8,119 - -	- - - - -	- - - - -
	$ 206,369

(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 Nine Months ended September 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.

(Continued)

(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).

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 September 30 2024 2023 $ 875 952	For the Nine Months ended September 30	For the Nine Months ended September 30
	2024 $ 875	2024 2,572	2023 3,735

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 September 30, 2024, and January 1 to September 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	September 30, 2024 $ 588	December 31, 2023 955	September 30, 2023
				999

Payables to related parties

The payables to related parties were as follows:

(Continued)

Account Other payables	Relationship Others	September 30, 2024 $ 358	December 31, 2023 108	35 September 30, 2023 158

4. Leases

The Group collected rental income from other related parties and affiliated companies, reporting lease income of $440 thousand, $430 thousand, $1,300 thousand and $1,289 thousand for the three months and the Nine Months ended September 30, 2024 and 2023 respectively. As of September 30, 2024, December 31, 2023, and September 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 Nine Months ended September 30, 2024, and 2023 respectively, the Group recognized the amounts of $29 thousand, $36 thousand, $92 thousand and $112 thousand as interest expenses. As of September 30, 2024 and 2023 respectively the balance of lease liabilities amounted to $3292 thousand and $4,342 thousand.

Prepayments

Account Prepayments	Relationship Sunrise	September 30, 2024 $ 5,398	December 31, 2023 1,376	September 30, 2023 1,678

6. Other

The combined company's operating expenses related to other related parties the three months and the Nine Months ended September 30, 2024, and 2023 were $5,103 thousand, $459 thousand, $6,328 thousand, and $1,905 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 September 30 2024 2023 $ 3,813 3,718 48 24 $ 3,861 3,382	For the Nine Months ended September 30	For the Nine Months ended September 30
2024 $ 3,813 48 $ 3,861	2024 14,518 172 14,690	2023
		10,764 71
		10,835

(Continued)

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	September 30, 2024 $230,286 49,781 $280,067	December 31, 2023 232,298 50,605 282,903	September 30, 2023
				233,073 50,879
				283,952

9. Significant Commitments and Contingencies

(a) Unrecognized contractual commitments

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

follows:
Signed-contract Paid-price	September 30, 2024 $ 262,830 $ 61,225	December 31, 2023 13,764 9,038	September 30, 2023
			19,427
			8,442

(b) In response to the strategic transformation needs of its industrial park, the subsidiary Zhejiang Rectron signed a relocation compensation agreement with the Jiashan Development Zone in September 2023, specifying compensation of $729,538 thousand (RMB 161,653 thousand). During the same year, a contract signing payment of $364,771 thousand (RMB 80,827 thousand) was received and recorded under other current liabilities.

In consideration of the Group's overall planning, the subsidiary opted to relocate to another facility within the same development zone. In August 2024, a factory purchase agreement was signed, and to align with the delivery schedule of the new factory, both parties agreed to delay the relocation timeline.

As of September 30, 2024, the factory handover procedures were completed in accordance with the factory purchase agreement, and 95% of the contract total price was paid. However, to accommodate the related payment schedule, an amount of $180,086 thousand (RMB 39,904 thousand) was recorded under other payables.

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 September 30,	three months ended September 30,	three months ended September 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	6,453 319 119 137 9,692 121	21,738 2,234 1,087 1,109 2,839 626	28,191 2,553 1,206 1,246 12,531 748	5,095 358 130 394 9,618 543	21,250 1,796 1,008 1,257 2,935 731	26,345 2,154 1,138 1,651 12,553 1,274

(Continued)

						3
By function By item		For the Nine Months ended September 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	16,354 1,004 377 418 28,878 363	64,970 5,976 3,414 3,168 8,268 1,922	81,324 6,980 3,791 3,586 37,146 2,285	14,631 1,025 394 1,070 29,443 933	73,583 5,333 3,402 3,569 9,064 2,010	88,214 6,358 3,796 4,639 38,507 2,943

(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 Nine Months ended September 30, 2024:

Lending to other parties:

==> picture [426 x 107] intentionally omitted <==

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

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 28,485 28,485 - 2 - Operation - - - 797,282 797,282
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% = $398,641thousand x 200% = $797,282 thousand.

The maximum funding limit for an individual counterparty = Shareholders' equity x 200% = $398,641 thousand x 200% = $797,282 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) September 30, 2024 Remark Carrying value Percentage of ownership (%) Market value ( or net value) 17,153 0.05% 17,153 26,635 -% 26,635 9,680 -% 9,680 4,266 - % 4,266	(Amounts in Thousands of New Taiwan Dollar) September 30, 2024 Remark Carrying value Percentage of ownership (%) Market value ( or net value) 17,153 0.05% 17,153 26,635 -% 26,635 9,680 -% 9,680 4,266 - % 4,266	(Amounts in Thousands of New Taiwan Dollar) September 30, 2024 Remark Carrying value Percentage of ownership (%) Market value ( or net value) 17,153 0.05% 17,153 26,635 -% 26,635 9,680 -% 9,680 4,266 - % 4,266	(Amounts in Thousands of New Taiwan Dollar) September 30, 2024 Remark Carrying value Percentage of ownership (%) Market value ( or net value) 17,153 0.05% 17,153 26,635 -% 26,635 9,680 -% 9,680 4,266 - % 4,266
Company holding securities	Security type and name	Relationship with the Company	Account		September 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	1,621,261	17,153	0.05%	17,153
The Company	Corporate bonds – Apple	-	Non-current financial assets at fair value through other comprehensive income	-	26,635	-%	26,635
The Company	Corporate bonds – AT&T	-	Non-current financial assets at fair value through other comprehensive income	-	9,680	-%	9,680
The Company	Corporate bonds – Pfizer	-	Non-current financial assets at fair value through other comprehensive income	-	4,266	- %	4,266

(Continued)

								3
Company holding securities CHU-TING CHU-TING	Security type and name	Relationship with the Company	Account		September 30, 2024			Remark
				Shares	Carrying value	Percentage of ownership (%)	Market value ( or net value)
	Fund – Yuan ta High Dividend 0056	-	Current financial assets at fair value through profit or loss	21,000	812	-%	812
	Stock - NVDA	-	Current financial assets at fair value through profit or loss	4,000	15,374	- %	15,374

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.

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	169,734 (Note 1)	729,538 (Note 2)	364,771 (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:RMB37,610 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)
Related party	Nature of relationship		Transac	tion details		Abno trans	rmal action	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)
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	215,601 (215,601) 195,832 (195,832)	67% (99)% 100% (73)%	Normal Normal Normal Normal	Normal Normal Normal Normal	90-120 Days 90-120 Days 120 Days 120 Days	(143,026) 143,026 (10,366) 10,366	(79)% 100% (100)% 80%

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

(Continued)

Information regarding receivables from related parties exceeding 100 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)
Company name	Related party	Nature of relationship	Balance as September 30, 2023	Turnover	O	verdue	Amount received in subsequent period	Allowance for bad debts
					Amount	Action taken
Rectron China	The Company	Parent-subsidiary relationship	143,026	2.6%	35,128	Collection	53,117	-

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

Infomation regarding trading in derivative financial instruments: None.
Significant transactions and business relationship between the parent company and its subsidiaries for the Nine Months ended September 30, 2024:

(Amounts in Thousands of New Taiwan Dollar)

No. (Note 1)	Company name	Counterparty	Relationship (Note 2)		Intercompany transactions	Intercompany transactions
				Account	Amount	Terms	Percentage of total consolidated net sales or assets
0	Rectron Ltd.	Rectron China	1	Operating cost	215,601	Calculated with finished product cost plus agreedprofit.	39%
0	Rectron Ltd.	Rectron China	1	Trade payables	143,026	Adjusted according to the overall funding situation between the parent and subsidiary companies, with a term of 120 days as stipulated in the agreement.	6%
0	Rectron Ltd.	REEI	1	Operating revenue	35,809	Calculated with finished product cost plus agreedprofit.	6%
0	Rectron Ltd.	REEI	1	Trade receivable	10,297	Adjusted according to the overall funding situation between the parent and subsidiary companies, with a term of 120 days as stipulated in the agreement.	-%
1	Rectron China	Zhejiang Rectron	3	Operating cost	195,832	Calculated with finished product cost plus agreedprofit.	35%
1	Rectron China	Zhejiang Rectron	3	Trade payables	10,366	Adjusted according to the overall funding situation between the parent and subsidiary companies, with a term of 120 days as stipulated in the agreement.	-%
2	CHU-TING	Rectron China	3	Other payables	28,485	Adjusted according to the overall funding situation between the parent and subsidiary companies, with a term of 120 days as stipulated in the agreement.	1%

Note 1: Companies are numbered as follows: Parent company － 0 Subsidiary － starting from 1

Note 2: The relationships between transaction parties are numbered as follows: Parent company and subsidiary － 1

Subsidiary and parent company － 2

Subsidiary and subsidiary － 3

(b) Information on investments:

The followings are the information on investees for the Nine Months ended September 30, 2024:

(Amounts in Thousands of New Taiwan Dollar)

Name of investor	Name of investee	Location	Main businesses	Original am	investment ount	Balance a	s of September 30, 2024	s of September 30, 2024	Net income (loss) of the investee	Investment income (loss) recognised by the Company
				September 30, 2024	December 31 2023	, Shares	Percentage	Carrying value
The Company	REEI	USA	Sales of rectifiers, etc. Electronic components	142,264	142,264	205,000	100.00%	9,601	(6,198)	(6,198)
The Company	Rectron China	Hong Kong	Sales of rectifiers, etc. Electronic components	607,273	607,273	20,000	100.00%	398,641	(3,711)	(3,711)
The Company	CHU-TING	Taiwan	Wholesale of tobacco and alcohol products and manufacturing and sales of medical equipment.	109,987	109,987	14,500,000	100.00%	155,389	(1,486)	(1,486)
	Note: The	amount had been offset in the consolidated financial statem				ents.

(Continued)

(c) Information on investment in Mainland China:

(Amounts in Thousands of New Taiwan Dollar)

Investee	Main businesses and products	Total amount of paid-in capital	Method of investment	Accumulated outflow of investment from Taiwan as of January 1, 2024	Inves	tment	Accumulated outflow of investment from Taiwan as of September 30, 2024	Net income (losses) of the investee	Percentage of ownership	Investment income (loss) recognized	Carrying value as of September 30, 2024	Accumulated inward remittance of earnings as of September 30, 2024
					Outflow	Inflow
Zhejiang Rectron	Manufacturing and sales of rectifiers and other electronic components.	409,029 USD12,000	NOTE 1(3)	409,029 USD12,000	-	-	409,029 USD12,000	1,013	100.00%	1,013	279,485	-

2. Upper limit on investment in Mainland China:

(Amounts in Thousands of New Taiwan Dollar)

Accumulated investment in Mainland China as of September 30, 2024	Investment amount authorized by Investment Commission, MOEA	Upper limit on investment
379,800 USD 12,000	505,450 USD 15,970	1,081,936

Note 1: Investment methods are categorized into the following three types, simply indicated by their types:
(1)Direct investment in mainland China.
(2)Investment in Mainland China through a third-party company in another region (please specify the investment company in that third region).
(3)Others method.
Note 2: In the investment gains/losses recognized in this period column:
(1)If it is under preparation and there are no investment gains/losses yet, it should be noted.
(2)The basis for recognizing investment gains/losses is the financial statements audited and certified by the certified public accountant of the Taiwan parent company.
Note 3: According to the "Principles for Reviewing Investment or Technical Cooperation in Mainland China," there are limits to the amount of investment.

Equity net worth × 60% = $1,803,226 thousand × 60% = $1,081,936 thousand.

3. Significant transactions:

The significant inter-company transactions with the subsidiary in Mainland China, which were eliminated in the preparation of consolidated financial statements, are disclosed in "Information on significant transactions”.

(d) Major shareholders

Unit: Share

(d) Major shareholders		Unit: S
Shareholding Shareholder’s Name	Shares	Percentage
Juiye EnterpriseCo.,Ltd.	42,788,288	25.72%
Bigwig Perfect International Co., Ltd.	38,141,792	22.93%

Note: The shareholder information in this table is provided by the Taiwan Depository & Clearing Corporation (TDCC) and is based on the calculation of the total number of common shares and preferred shares held by shareholders, excluding treasury shares, as of the last business day of each quarter. The data includes shareholders whose holdings account for more than 5% of the total shares outstanding. Please note that there may be differences between the reported share capital in the company's financial statements and the actual number of shares held by shareholders, due to different calculation methods or other factors.

14. Segment information

(a) General information

The consolidated company has four reporting segments: Electronics, Real Estate Investment, Medical Equipment, and Wine Trading. The Diode segment is engaged in the manufacturing and

(Continued)

sales of various rectifiers and other semiconductor components. The Real Estate Investment segment is engaged in the business of leasing office buildings and factories. The Medical Equipment segment is engaged in the business of buying and selling and manufacturing masks. The Wine Trading segment is engaged in the business of trading red and white wines.

The reporting segments of the consolidated company are strategic business units that provide different products and services. As each strategic business unit requires different technology and marketing strategies, they need to be managed separately.

(b) Information of profit or loss, assets, liabilities, basis and adjustments of which of departments to be reported.

The consolidated company uses the departmental pre-tax profit (excluding non-recurring gains and losses and exchange gains and losses) reviewed by the chief operating decision-maker in the internal management report as the basis for resource allocation and performance evaluation by the management. Since income tax, non-recurring gains and losses, and exchange gains and losses are managed on a group basis, the consolidated company does not allocate income tax expenses (benefits), non-recurring gains and losses, and exchange gains and losses to the reporting segments. In addition, not all significant non-cash items, other than depreciation and amortization, are included in the income statement of all reporting segments. The amounts reported are consistent with the reports used by the operating decision-makers.

The information and adjustments for the operating segments of the consolidated company are as follows: The Group’s operating segment information and reconciliation are as follows:

For the three months ended September 30, 2024 Revenue Revenue from external customers Intersegment revenues Total revenue Reportable segment profit or loss For the three months ended September 30, 2023 Revenue Revenue from external customers Intersegment revenues Total revenue Reportable segment profit or loss	Electronics Department $ 192,965 176,274 $369,239 $14,734 Electronics Department $ 180,012 162,014 $342,026 $36,896	Property Management Division 6,016 - 6,016 3,998 Property Management Division 7,190 - 7,190 3,855	Medical Devices Division 1,972 38 2,010 (1,669) Medical Devices Division 2,841 116 2,957 156	Wine Trading Department 846 - 846 (63) Wine Trading Department 952 - 952 952	Reconciliation and elimination - (176,312) (176,312) - Reconciliation and elimination - (162,130) (162,130) (5,141)	Total
						201,799 -
						201,799
						17,000
						Total
						190,995 -
						190,995
						36,058

(Continued)

Wine Trading Department 2,519 - 2,519 880 Wine Trading Department	Reconciliation and elimination - (463,056) (463,056) - Reconciliation and elimination - (439,109) (439,109) (22,801)	Total 552,477 - 552,477 79,634 Total 572.955 - 572,955 100,629




3,599 -	- (439,109)	572.955 -
3,599	(439,109)	572,955
2,236	(22,801)	100,629

(Continued)

AI assistant

RECTRON — Interim / Quarterly Report 2024

51998_rns_2024-12-23_356215ac-3ad2-4a9f-bb06-3a50110ca0ec.pdf

Rectron Ltd. AND SUBSIDIARIES

Consolidated Financial Statements

Table of contents

Independent Auditors’ Review Report

Introduction

Scope of Review

Basis for Qualified Conclusion

Qualified Conclusion

Other Matters

KPMG

Notes to Readers

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

Consolidated Balance Sheets

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

Rectron LTD. and Subsidiaries

Consolidated Statement of Comprehensive Income

For the Nine Months ended September 30, 2024 and 2023 (Expressed in Thousands of New Taiwan Dollar, except for Earnings per Common Share)

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

Rectron LTD. and Subsidiaries

Consolidated Statement of Changes in Equity

Rectron LTD. and Subsidiaries

Consolidated Statement of Cash Flows

For the Nine Months ended September 30, 2024 and 2023 (Expressed in Thousands of New Taiwan Dollars)

Rectron Ltd. and Subsidiaries

Notes to Consolidated Financial Statements

September 30, 2024 and 2023

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

1. Company history

2. Approval date and procedures of the consolidated financial statements

3. New standards and interpretations not yet adopted

4. Summary of significant accounting policies

(2) Basis of consolidation

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

(4) Income tax

(5) Employee benefits

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

6. Explanation of significant accounts

(c) Trade receivables and notes receivable

(e) Property, plant and equipment

(g) Investment property

(i)Operating Lease

(j)Provisions

1. Defined benefit plans

(l)Capital and other equity

(ii) Special reserve

(iii) Earnings distribution

(m) Earnings per share

1. Basic earnings per share

2. Diluted earnings per share

(o) Remunerations to employees, directors and supervisors

(q) Financial instruments

1. Credit risk

(i) Credit risk exposure

(ii) Concentration of credit risk

(iii) Receivables and debt securities

2. Liquidity risk

(ii) Interest rate analysis

(iii) Other market price risk

7. Related-party transactions

4. Leases

6. Other

(c) Others

(d) Key management personnel compensation

8. Assets pledged as security

9. Significant Commitments and Contingencies

10. Losses due to major disasters: none

11. Subsequent events: none

12. Others

(b) Seasonality of operations

13. Other disclosure items

(b) Information on investments:

(c) Information on investment in Mainland China:

2. Upper limit on investment in Mainland China:

3. Significant transactions:

(d) Major shareholders

14. Segment information

(a) General information

RECTRON Interim / Quarterly Report 2024