RH - Interim / Quarterly Report 2022

Stock Code ： 4807

[(English Translation of Consolidated Interim Financial Statements and Report Originally Issued in Chinese)] REGAL HOLDING CO., LTD. AND ITS SUBSIDIARIES

Consolidated Interim Financial Statements

With Independent Auditor’s Review Report September 30, 2022 and 2021

Address ： Oleander Way, 802 West Bay Road, P. O. Box 32052, Grand Cayman KY1-1208, Cayman Islands Telephone ： 66-24-207440-1074

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Contents 1. Cover Page 2. Table of Contents 3. Independent Auditors’ Review Report 4. Consolidated Balance Sheets 5. Consolidated Statements of Comprehensive Income 6. Consolidated Statements of Changes in Equity 7. Consolidated Statements of Cash Flows 8. Notes to the Consolidated Interim 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 significant accounting policies (5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty (6) Explanation of significant accounts (7) Related-party transactions (8) Pledged assets (9) Significant commitments and contingencies (10) Losses due to major disasters (11) Subsequent events (12) Other (13) Other disclosures (a) Information on significant transactions (b) Information on investees (c) Information on investment in mainland China (d) Information on major shareholders (14) Segment information	Page
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Contents
1. Cover Page
2. Table of Contents
3. Independent Auditors’ Review Report
4. Consolidated Balance Sheets
5. Consolidated Statements of Comprehensive Income
6. Consolidated Statements of Changes in Equity
7. Consolidated Statements of Cash Flows
8. Notes to the Consolidated Interim 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 significant accounting policies
(5) Significant accounting assumptions and judgments, and major sources
of estimation uncertainty
(6) Explanation of significant accounts
(7) Related-party transactions
(8) Pledged assets
(9) Significant commitments and contingencies
(10) Losses due to major disasters
(11) Subsequent events
(12) Other
(13) Other disclosures
(a) Information on significant transactions
(b) Information on investees
(c) Information on investment in mainland China
(d) Information on major shareholders
(14) Segment information

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Independent Auditors’ Review Report

To the Board of Directors of Regal Holding Co., Ltd.:

Preface

We have reviewed the accompanying consolidated balance sheets of Regal Holding Co., Ltd. and its subsidiaries as of September 30, 2022 and 2021, the consolidated statements of comprehensive income for the years ended September 30, 2022 and 2021, and the consolidated statements of changes in equity and cash flows for the years ended September 30, 2022 and 2021, and notes to the consolidated financial statements, including the summary of significant accounting policies. It is the responsibility of management to prepare consolidated financial statements that present fairly the financial position of the Company in accordance with the Guidelines Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, "Interim Financial Reporting", as endorsed by the Financial Supervisory Commission and issued by the Financial Supervisory Commission. Our responsibility is to express a conclusion on the consolidated financial statements based on our review.

Scope of Review

We conducted our review in accordance with Statement of Auditing Standards No. 65, "Review of Financial Statements". The procedures applied in reviewing consolidated financial statements include making inquiries (primarily of persons responsible for financial and accounting matters), analytical procedures and other review procedures. A review is substantially less in scope than an audit and consequently we may not be able to identify all of the significant matters that might be identified by an audit and hence cannot express an opinion.

Conclusion

Based on our review, no material deviations in the above-mentioned consolidated financial report were found in accordance with the Guidelines Governing the Preparation of Financial Reports and the International Accounting Standard No. 34 "Interim Financial Reporting", which made it impossible to properly express the consolidated financial position of Regal Holding Co., Ltd. and its subsidiaries on September 30, 2022 and 2021, the consolidated financial performance from January 1, 2022 to September 30, 2022 and January 1, 2021 to September 30, 2021, and the consolidated cash flow from January 1, 2022 to September 30, 2022 and January 1, 2021 to September 30, 2021.

The engagement partners on the reviews resulting in this independent auditors' review report are Chun-I Chang and Min-Ju Chao.

KPMG

Taipei, Taiwan (Republic of China)

November 14, 2022

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(English Translation of Consolidated Interim Financial Statements and Report Originally Issued in Chinese)

REGAL HOLDING CO., LTD. AND ITS SUBSIDIARIES

Consolidated Balance Sheets

September 30, 2022, December 31, 2021 and September 30, 2021

(Expressed in Thousands of New Taiwan Dollars)

September 30, 2022 Amount % $ 165,042 11 533,971 35 9,129 1 12,078 1 364,117 25 23,060 2	December 31, 2021 Amount % 270,283 17 535,849 35 7,766 - 14,982 1 371,176 24 12,001 1	September 30, 2022 Amount % $ 16,904 1 5,219 - 386 - 28,140 2 82,334 6 6,932 - 896 - 243,482 17 5,268 -	December 31, 2021 Amount % 44,264 3 1,075 - 144 - 17,380 1 101,309 7 36,979 2 900 - 239,789 16 4,902 -	September 30, 2021 Amount % 128,518 8 - - 111 - 30,817 2 88,148 5 42,379 3 896 - - - 12,179 1
1,107,397 75	1,212,057 78
294 - 330,985 22 1,416 - 8,603 1 19,747 1 8,932 1	294 - 300,895 19 1,186 - 9,114 1 19,465 1 9,196 1
		389,561 26	446,742 29	303,048 19
		- - - - 68,380 5 530 - 27,603 2 3,931 -	- - - - 61,537 4 304 - 25,467 2 3,593 -	1,100 - 238,588 15 56,333 4 530 - 27,151 2 3,461 -
369,977 25	340,150 22
		100,444 7	90,901 6	327,163 21
		490,005 33	537,643 35	630,211 40
		383,960 26	383,893 25	383,860 24
		375,499 25	439,099 28	439,036 28
		83,469 6 121,175 8 46,603 3	70,774 4 - - 133,870 9	70,774 4 - - 92,711 6
		251,247 17	204,644 13	163,485 10
		(104,132) (6) (11,906) (1) - -	(116,635) (7) (11,906) (1) - -	(123,507) (8) (11,318) (1) (233) -
		(116,038) (7)	(128,541) (8)	(135,058) (9)
		894,668 61	899,095 58	851,323 53
		92,701 6	115,469 7	110,921 7
		987,369 67	1,014,564 65	962,244 60
$ 1,477,374 100	1,552,207 100	$ 1,477,374 100	1,552,207 100	1,592,455 100

See accompanying notes to consolidated interim financial statements.

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(English Translation of Consolidated Interim Financial Statements and Report Originally Issued in Chinese)

REGAL HOLDING CO., LTD. AND ITS SUBSIDIARIES

Consolidated Statements of Comprehensive Income

For the three months and nine months ended at September 30, 2022 and 2021

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

For the three months ended at September	For the three months ended at September	For the three months ended at September	30	For the nine months ended at September	For the nine months ended at September	For the nine months ended at September	30 % 100 77
2022	% 100 72	2021		2022	% 100 81	2021
Amount $ 531,475 381,196		Amount 610,246 459,827	%			Amount 1,516,734 1,166,347
150,279	28	150,419	25	245,732	19	350,387	23
14,547 41,952 15,113 (896)	3 7 3 -	13,585 42,655 13,735 4,183	2 42,387 7 117,171 2 43,450 1 60		3 10 3 -	48,106 124,868 44,855 4,701	3 9 3 -
70,716	13	74,158	12	203,068	16	222,530	15
79,563	15	76,261	13	42,664	3	127,857	8
463 465 11,697 (1,324)	- - 2 -	23 1,246 (555) (1,443)	- - - -	760 6,096 33,492 (4,047)	- - 3 -	262 4,900 13,957 (6,368)	- - 1 -
11,301	2	(729)	-	36,301	3	12,751	1
90,864 20,838	17 4	75,532 23,614	14 78,965 4 24,308		6 2	140,608 49,206	9 3
70,026	13	51,918	9	54,657	4	91,402	6
(2,863) -	- -	(60,361) -	(10) 14,094 - -		1 -	(159,269) -	(11) -
(2,863)	-	(60,361)	(10)	14,094	1	(159,269)	(11)
$ 67,163	13	(8,443)	(1)	68,751	5	(67,867)	(5)
$ 61,981 8,045	11 2	47,302 4,616	8 46,603 1 8,054		4 -	84,546 6,856	6 -
$ 70,026	13	51,918	9	54,657	4	91,402	6
$ 59,345 7,818	11 2	(6,849) (1,594)	(1) 59,106 - 9,645		4 1	(57,647) (10,220)	(4) (1)
$ 67,163	13	(8,443)	(1)	68,751	5	(67,867)	(5)
	1.61		1.24		1.21		2.21
$	1.40		1.03		1.15		1.89

See accompanying notes to consolidated interim financial statements.

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(English Translation of Consolidated Interim Financial Statements and Report Originally Issued in Chinese)

REGAL HOLDING CO., LTD. AND ITS SUBSIDIARIES

Consolidated Statements of Changes in Equity

For the nine months ended at September 30, 2022 and 2021

(Expressed in Thousands of New Taiwan Dollars)

Equity attributable to owners of the Company

Common Stock Capital Surplus Legal Reserve Special Reserve Unappropriated retained earnings Total retained earnings $ 383,860 439,036 70,774 28,481 (1,123) 98,132 - - - (28,481) 28,481 - - - - - (19,193) (19,193) - - - - 84,546 84,546 - - - - - -		Other equity	Total equity attributable to owners of the Company Non-controlling interests 926,646 157,616 - - (19,193) - 84,546 6,856 (142,193) (17,076)	Total equity
	Exchange differences on translation of foreign operations	Unrealized gains or losses on financial assets measured at fair value through other comprehensive income Others (11,318) (1,750) - - - - - - - -
	18,686 - - - (142,193)			1,084,262 - (19,193) 91,402 (159,269)
- - - - 84,546 84,546	(142,193)	- -	(57,647) (10,220)	(67,867)
- - - - - - - - - - - - - - - - - -	- - -	- 1,517 - - - -	1,517 - - 439 - (36,914)	1,517 439 (36,914)
$ 383,860 439,036 70,774 - 92,711 163,485	(123,507)	(11,318) (233)	851,323 110,921	962,244
$ 383,893 439,099 70,774 - 133,870 204,644 - - 12,695 - (12,695) - - - - 121,175 (121,175) - - (63,727) - - - - - - - - (46,603) 46,603 - - - - - -	(116,635) - - - - 12,503	(11,906) - - - - - - - - - - -	899,095 115,469 - - - - (63,727) - 46,603 8,054 12,503 1,591	1,014,564 - - (63,727) 54,657 14,094
- - - - 46,603 46,603	12,503	- -	59,106 9,645	68,751
67 127 - - - - - - - - - - - - - - - -	- - -	- - - - - -	194 - - 934 - (33,347)	194 934 (33,347)
$ 383,960 375,499 83,469 121,175 46,603 251,247	(104,132)	(11,906) -	894,668 92,701	987,369

See accompanying notes to consolidated interim financial statements.

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(English Translation of Consolidated Interim Financial Statements and Report Originally Issued in Chinese)

REGAL HOLDING CO., LTD. AND ITS SUBSIDIARIES

Consolidated Statements of Cash Flows

For the nine months ended at September 30, 2022 and 2021

(Expressed in Thousands of New Taiwan Dollars)

Cash flows from (used in) operating activities: Profit (losses) before tax Adjustments: Adjustments to reconcile profit (losses): Depreciation expenses Amortization expenses Expected credit losses (gains) Losses on financial liabilities measured at fair value through profit or loss Interest expenses Interest income Share-based payments Gains on disposal of property, plant and equipment Losses on disposal of intangible assets Gains on disposal of investments Gains on lease modification Unrealized foreign exchange losses (gains) Transfer of intangible assets to expenses Total adjustments to reconcile profit (losses) Changes in operating assets and liabilities: Trade receivables Other receivables Inventories Other current assets Total changes in operating assets Notes payables Trade payables Other payables Other current liabilities Net defined benefit liabilities Total changes in operating liabilities Total changes in operating assets and liabilities Total adjustments Cash inflows generated from operations Interest received Interest paid Income tax paid Net cash flows from operating activities Cash flows from (used in) investing activities: Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Acquisition of intangible assets Decrease (increase) in other financial assets`－`non-current Net cash flows used in investing activities Cash flows from (used in) financing activities: Decrease in short-term loans Increase in guarantee deposits received Payments of lease liabilities Payments of cash dividends Changes in non-controlling interests Cash dividends paid to non-controlling interests Net cash flows used in financing activities Effect of exchange rate changes on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of period Cash and cash equivalents at the end of period	For the nine months ended September 30 2022 2021 $ 78,965 140,168 42,463 38,465 2,150 3,278 60 4,701 4,145 100 4,047 6,368 (760) (262) - 1,517 (253) (1,036) 28 - (99) - (2,593) 1,827 - 252 (17) - 49,171 55,210 5,235 (181,222) (1,363) (1,929) 7,059 (201,986) (11,059) (3,779) (128) (388,916) 242 (296) 9,353 5,390 (18,212) (4,081) 366 8,298 1,829 2,956 (6,422) 12,267 (6,550) (376,649) 42,621 (321,439) 121,586 (180,831) 760 262 (345) (2,294) (45,124) (25,738) 76,877 (208,601) (68,763) (56,386) 723 1,323 (1,556) (2,224) 264 (758) (69,332) (58,045) (27,236) (215,944) 338 180 (662) (686) (63,727) (19,193) 934 439 (33,347) (36,914) (123,700) (272,118) 10,914 (15,575) (105,241) (554,339) 270,283 674,257 $ 165,042 119,918	For the nine months ended September 30 2022 2021 $ 78,965 140,168 42,463 38,465 2,150 3,278 60 4,701 4,145 100 4,047 6,368 (760) (262) - 1,517 (253) (1,036) 28 - (99) - (2,593) 1,827 - 252 (17) - 49,171 55,210 5,235 (181,222) (1,363) (1,929) 7,059 (201,986) (11,059) (3,779) (128) (388,916) 242 (296) 9,353 5,390 (18,212) (4,081) 366 8,298 1,829 2,956 (6,422) 12,267 (6,550) (376,649) 42,621 (321,439) 121,586 (180,831) 760 262 (345) (2,294) (45,124) (25,738) 76,877 (208,601) (68,763) (56,386) 723 1,323 (1,556) (2,224) 264 (758) (69,332) (58,045) (27,236) (215,944) 338 180 (662) (686) (63,727) (19,193) 934 439 (33,347) (36,914) (123,700) (272,118) 10,914 (15,575) (105,241) (554,339) 270,283 674,257 $ 165,042 119,918
		2022 $ 78,965 42,463 2,150 60 4,145 4,047 (760) - (253) 28 (99) (2,593) - (17)
		49,171
		5,235 (1,363) 7,059 (11,059)
		(128)
		242 9,353 (18,212) 366 1,829
		(6,422)
		(6,550)
		42,621
		121,586 760 (345) (45,124)
		76,877
		(68,763) 723 (1,556) 264
		(69,332)
		(27,236) 338 (662) (63,727) 934 (33,347)
		(123,700)
		10,914 (105,241) 270,283
		$ 165,042

See accompanying notes to consolidated interim financial statements.

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(English Translation of Consolidated Interim Financial Statements and Report Originally Issued in Chinese)

REGAL HOLDING CO., LTD. AND ITS SUBSIDIARIES Notes to the Consolidated Interim Financial Statements

September 30, 2022 and 2021

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

(1) Company history

Regal Holding Co., Ltd. (the "Company") was established in the Cayman Islands in October 2014. The main purpose of the establishment was to restructure its group entities for application to list on Taiwan Stock Exchange ("TWSE") in the Republic of China. The Company become the holding company of Regal Jewelry Manufacture Co., Ltd. ("R.JM") by using share swaps with previous shareholders of RJM to restructure the group. The Company's shares have been listed and traded on the TWSE since June 26, 2017. The main business of the Company and subsidiaries are designing, manufacturing, electroplating and selling jewelry gems. Please refer to note 6(r).

(2) Approval date and procedures of the consolidated interim financial statements:

The consolidated financial statements were approved by the Board of Directors on November 14, 2022.

(3) New standards, amendments and interpretations adopted:

(a) The impact of adopting the International Financial Reporting Standards ("IFRSs") endorsed by the Financial Supervisory Commission (FSC), R.O.C.
The Group has initially adopted the following new amendments, which do not have a significant impact on its consolidated financial statements, from January 1, 2022:
‧ Amendments to IAS 16, "Property, Plant and Equipment - Price before reaching Expected Condition to Use"
‧ Amendments to IAS 37, "Onerous Contracts - Costs of Contracts Fulfillment"
‧ Annual Improvements to IFRS for the 2018-2020 Cycle
‧ Amendments to IFRS 3, "References to Conceptual Framework"
(b) The impact of IFRS endorsed by FSC but not yet effective

The Group assesses that the application of the following newly amended IFRS, which are effective as of January 1, 2023, will not have a material impact on the consolidated financial statements:

‧ Amendments to IAS 1, "Disclosure of Accounting Policies
‧ Amendments to IAS 8, "Definition of Accounting Estimates"
‧ Amendments to IAS 12, "Deferred Income Taxes Related to Assets and Liabilities Arising from a Single Transaction"

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REGAL HOLDING CO., LTD. AND ITS SUBSIDIARIES Notes to the Consolidated Interim Financial Statements

The Group does not expect the following new and amended standards, which have not yet been endorsed, to have a significant impact on the consolidated financial statements.

‧ Amendments to IFRS 10 and IAS 28, "Disposal of or Contribution to Assets between an Investor and its Affiliates or Joint Ventures"
‧ IFRS 17 "Insurance Contracts" and related amendments
‧ Amendments to IAS 1, "Classification of Liabilities as Current or Noncurrent"
‧ Amendments to IFRS 16, "Provisions for Sale and Leaseback Transactions"
‧ Amendments to IAS 1, "Non-current Liabilities with Contractual Provisions"

(4) Summary of significant accounting policies:

Except as described below, the significant accounting policies used in this consolidated financial statements are the same as those used in the 2021 consolidated financial statements. For related information, please refer to Note 4 of it.

(a) Statement of compliance

The consolidated financial statements have been prepared in accordance with the "Regulations Governing the Preparation of Financial Reports by Securities Issuers" (Regulations) and International Accounting Standard 34, "Interim Financial Reporting", as endorsed by FSC and in effect. These consolidated financial reports do not include all information that is required to be disclosed in annual consolidated financial report prepared in accordance with International Financial Reporting Standards, International Accounting Standards, Interpretations and Explanatory Notes as endorsed and issued by FSC.

(b) Basis of consolidation

The principles of preparation of the consolidated financial statements are consistent with those of the consolidated financial statements for fiscal year 2021. For related information, please refer to Note 4(c) of the 2021 consolidated financial statements.

1. List of subsidiaries in the consolidated financial statements

st of subsidiaries in the consolidated financial statements
Name of Main investor Name of subsidiary business	Percentage of ownership (%)
	September 30, 2022 December 31, 2021 September 30, 2021
The Company Regal Jewelry Manufacture Co., Ltd. (RJM) Designing, manufacturing and selling jewelry and gems The Company GIO VAN GOGH (International) Jewelry Ltd. (GVG Hon Kong) Investment activities The Regal Management Solution Co., Technical
	99.99% 99.99% 99.99% - % (Note 4) 100.00% 100.00% 99.90% 99.99% 99.99%

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REGAL HOLDING CO., LTD. AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements

Company	Ltd. (RMS)	services and	(Note 1)	(Note 1)	(Note 1)	(Note 1)
		resources
		consulting
The	Chaporo Co., Ltd. (Chaporo)	Investment	-	%	70.00%	70.00%
Company		activities	(Note 4)
The	Reunite Inspiring Creation Co.,	Selling	100.00%		100.00%	100.00%
Company	Ltd. (RIC)	jewelry and
		gems
RJM	Regal Plating Co., Ltd.	Plating	51.00%		51.00%	51.00%
	(RGP)	jewelry and
		gems
RJM	Regal Precious Metal Innovation	Metal	99.90%		- %	- %
	Co., Ltd. (RPM) (Note 3)	recycling
RJM	Linden Integrated Co., Ltd.	Selling	49.00%		49.00%	49.00%
	(Linden) ( Note 2)	jewelry and
		gems
GVG Hong	Gio Van Gogh Shen Zhen Ptd	Selling		-	100.00%	100.00%
Kong	Ltd. (GVG Shen Zhen)	jewelry and		%
		gems	(Note 4)

Note 1 ： The Company increased its capital by 4,000 thousand Thai Baht on March 19, 2021, and increased its capital by 2,500 thousand Thai Baht on February 23, 2022 and June 22, 2022, respectively, after the resolution of the Board of Directors.
Note 2 ： Linden's administration, key managements, business activities and locations, and products are all assigned or provided by the Company or RJM, and therefore have substantial control over it. In addition, on February 15, 2022 and August 15, 2022, the Company increased its capital by 536 thousand Thai Baht and 441 thousand Thai Baht respectively.
Note 3 ： RPM had a capital injection of 59,940 thousand Thai Baht on March 15, 2022 and completed the establishment registration on April 11, 2022.
Note 4 ： On March 11, 2022, the Group's Board of Directors resolved to terminate the operations of the subsidiary, the Chaporo obtained a certificate of cancellation on August 4, 2022, and the liquidation procedures of remaining subsidiaries are still in progress. A gain on disposal of $99 thousand was recognized in the current period and was recorded under other gains or losses.

All subsidiaries of the Company are included in the consolidated financial statements.

(c) Employee benefits

Defined benefit pensions plan for the interim period are calculated using actuarially determined pension cost rates as of the end of the prior fiscal year, based on the beginning of the year through the end of the current period, adjusted for significant market fluctuations and significant curtailments, liquidations or other significant one-time events after that end date.

(d) Income taxes

Income tax expense is measured by multiplying net income before income taxes for the period under review by management's best estimate of the estimated effective tax rate for the full year and is recognized as income tax expense in current period.

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REGAL HOLDING CO., LTD. AND ITS SUBSIDIARIES Notes to the Consolidated Interim Financial Statements

Income tax expense recognized directly in equity or other comprehensive income is measured at the tax rates that are expected to apply when the related assets and liabilities are realized or settled, based on temporary differences between their carrying amounts for financial reporting purposes and their tax bases.

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

The preparation of the consolidated financial statements in conformity with the "Regulations Governing the Preparation of Financial Reports by Securities Issuers" and International Accounting Standard 34, "Interim Financial Reporting," as endorsed by the FSC, requires managements to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, revenues and expenses. Actual results may differ from these estimates.

The significant judgments made by managements in the adoption of the Group's accounting policies and the key sources of estimation uncertainty in the preparation of the consolidated financial statements are consistent with Note 5 in 2021 consolidated financial statements.

(6) Explanation of significant accounts

Except for the following disclosures, there is no significant difference as compared with those disclosed in the consolidated financial statements for the year ended December 31, 2021. Please refer to Note 6 of the 2021 annual consolidated financial statements.

(a) Cash and cash equivalents

Cash Demand deposits Checking deposits Fixed deposits Cash and cash equivalents in consolidated statement of cash flows	September 30, 2022 $ 796 134,509 65 29,672	December 31, 2021 888 248,429 40 20,926	September 30, 2021 895 98,233 41 20,479 119,918
	$ 165,042	270,283

For the interest rate risk and sensitivity analysis of the Company's consolidated financial assets and liabilities, please refer to Note 6(u).

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REGAL HOLDING CO., LTD. AND ITS SUBSIDIARIES Notes to the Consolidated Interim Financial Statements

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

Financial assets at fair value through other comprehensive income: Unlisted stocks`－`foreign companies	September 30, 2022 $ 294	December 31, 2021 September 30, 2021 294 882

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 long-term strategic purposes. For market risk information, please refer to Note 6(u).

Trade receivables Less: allowance for loss	September 30, 2022 $ 534,267 (296)	December 31, 2021 537,664 (1,815)	September 30, 2021 577,691 (1,466) 576,225
	$ 533,971	535,849

The Group applies the simplified approach to assess 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 Group’s analysis on the expected credit loss of its trade receivables in the region of Thailand were as follows:

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REGAL HOLDING CO., LTD. AND ITS SUBSIDIARIES Notes to the Consolidated Interim Financial Statements

Not yet due Past due 1~30 days Past due 31~60 days Past due 91~180 days Not yet due Past due 1~30 days Past due 31~60 days Past due 91~180 days Not yet due Past due 1~30 days Past due 31~60 days Past due 61~90 days Past due 181~365 days	September 30, 2022	September 30, 2022	Allowance for lifetime expected credit loss - - - -
	Book value of trade receivables Lifetime expected credit loss rate(`％`) $ 343,556 - 63,801 - 17 - 3 13.61 $ 407,377 December 31, 2021
			- Allowance for lifetime expected credit loss - - - 8 8 Allowance for lifetime expected credit loss - - - 19 284 303
	Book value of trade receivables Lifetime expected credit loss rate(`％`) $ 316,748 - 128,753 - 584 - 62 12.14 $ 446,147 September 30, 2021
	Book value of trade receivables Lifetime expected credit loss rate(`％`) $ 383,605 - 98,428 - 1,492 - 1,095 1.70 284 100.00 $ 484,904

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REGAL HOLDING CO., LTD. AND ITS SUBSIDIARIES Notes to the Consolidated Interim Financial Statements

The Group’s analysis on the expected credit loss of its trade receivables in other regions were as follows:

Not yet due Past due 1~30 days Past due 31~60 days Past due 61~90 days Not yet due Past due 1~30 days Past due 31~60 days Past due 61~90 days Past due 91~180 days Past due 181~365 days Over 1 year Not yet due Past due 1~30 days Past due 31~60 days Past due 61~90 days Past due 181~365 days Over 1 year	September 30, 2022	September 30, 2022	Allowance for lifetime expected credit loss 158 135 2 1 296 Allowance for lifetime expected credit loss 347 291 699 131 160 260 1,334 3,222 Allowance for lifetime expected credit loss 256 69 148 168 314 1,034 1,989
	Book value of trade receivables Lifetime expected credit loss rate(`％`) $ 105,758 0.15 21,082 0.64 42 5.18 8 13.91 $ 126,890 December 31, 2021
	Book value of trade receivables Lifetime expected credit loss rate(`％`) $ 60,763 0.57 18,667 1.56 9,239 7.57 788 16.68 462 34.53 264 98.34 1,334 100.00 $ 91,517 September 30, 2021
	Book value of trade receivables Lifetime expected credit loss rate(`％`) $ 81,220 0.31 7,843 0.88 1,544 9.60 819 20.48 327 96.17 1,034 100.00 $ 92,787

～ 14 ～

REGAL HOLDING CO., LTD. AND ITS SUBSIDIARIES Notes to the Consolidated Interim Financial Statements

The movements of the allowance for loss for trade receivables were as follows:

Balance at the beginning Impairment losses recognized Amounts written off Foreign currency translation effects Balance at the end	For the nine months ended September 30 2022 2021 $ 1,815 6,388 60 591 (1,624) (5,032) 45 (481) $ 296 1,466	For the nine months ended September 30 2022 2021 $ 1,815 6,388 60 591 (1,624) (5,032) 45 (481) $ 296 1,466
		2022 $ 1,815 60 (1,624) 45
		$ 296

(d) Other receivables

Other receivables Less: allowance for loss	September 30, 2022 $ 24,625 (15,496)	December 31, 2021 23,070 (15,304)	September 30, 2021 21,469 (3,797) 17,672
	$ 9,129	7,766

The movements of the allowance for loss for other receivables were as follows:

Balance at the beginning Impairment losses recognized Foreign currency translation effects Balance at the end	For the nine months ended September 30 2022 2021 $ 15,304 - - 4,110 192 (313) $ 15,496 3,797	For the nine months ended September 30 2022 2021 $ 15,304 - - 4,110 192 (313) $ 15,496 3,797
		2022 $ 15,304 - 192
		$ 15,496

Group did not have any past due other receivables as of September 30, 2022, December 31, 2021 and September 30, 2021.

For further credit risk information, please refer to Note 6(u).

(e) Inventories

Raw materials Work in process Finished goods Supplies and spare parts	September 30, 2022	September 30, 2022	Book value of Book value of Net realizable value 220,774 119,817 14,227 9,299 364,117
	Book value of trade receivables Book value of Cost $ 275,595 126,077 18,293 12,026	Allowance for devaluation and obsolescence 54,821 6,260 4,066 2,727
	$ 431,991	67,874

～ 15 ～

REGAL HOLDING CO., LTD. AND ITS SUBSIDIARIES Notes to the Consolidated Interim Financial Statements

Raw materials Work in process Finished goods Supplies and spare parts Raw materials Work in process Finished goods Supplies and spare parts	December 31, 2021	December 31, 2021	Book value of Book value of Net realizable value 219,485 119,786 22,174 9,731 371,176 Book value of Book value of Net realizable value 271,373 187,609 18,547 8,413 485,942
	Book value of trade receivables Book value Cost $ 269,967 129,969 29,554 12,437	Allowance for devaluation and obsolescence 50,482 10,183 7,380 2,706
	$ 441,927	70,751
	September 30, 2021
	Book value of trade receivables Book value of Cost $ 327,060 197,703 25,657 14,674	Allowance for devaluation and obsolescence 55,687 10,094 7,110 6,261
	$ 565,094	79,152

The movements of the allowance for devaluation and obsolescence in inventories were as follows:

Balance at the beginning Current provision (reversal) Foreign currency translation effects Balance at the end	For the nine months ended September 30 2022 2021 $ 70,751 75,491 (3,820) 14,429 943 (10,768) $ 67,874 79,152	For the nine months ended September 30 2022 2021 $ 70,751 75,491 (3,820) 14,429 943 (10,768) $ 67,874 79,152
		2022 $ 70,751 (3,820) 943
		$ 67,874

In addition to the regular costs of goods sold, the following profit and loss were the components included in the Group’s operating costs:

For	the	three months ended	September 30 For the nine months ended	September 30 For the nine months ended	September 30
		2022	2021	2022	2021
Loss on the allowance for inventory	$	(24,922)	11,771	(3,820)	14,429
devaluation and obsolescence
Inventory scrap loss		516	-	516	-
Revenue from sales of scrap		(25,648)	(1,038)	(61,999)	(11,251)
	$	(50,054)	10,733	(65,303)	3,178

As of September 30, 2022, December 31, 2021 and September 30, 2021, the Group did not pledge the

～16～

REGAL HOLDING CO., LTD. AND ITS SUBSIDIARIES Notes to the Consolidated Interim Financial Statements

inventories as collateral.

(f) Subsidiaries with material non-controlling interests

The non-controlling interests of subsidiaries that are material to the Group were as follows:

Subsidiary Regal Plating Co., Ltd.	Main operation place / country of incorporation Thailand	Percentage of non-controlling interests	Percentage of non-controlling interests	Percentage of non-controlling interests
		September 30, 2022 49.00%	December 31, 2021 49.00%	September 30, 2021
				49.00%

The following information of the aforementioned subsidiary has been prepared in accordance with

the IFRS endorsed by the FSC, and the intra-group transactions were not eliminated in this information.

The collective financial information of the Regal Plating Co., Ltd. was as follows:

Current assets Non-current assets Current liabilities Non-current liabilities Net assets Non-controlling interests	September 30, 2022 $ 184,811 20,093 (16,261) (1,664)	December 31, 2021 227,124 26,819 (17,999) (1,264)	September 30, 2021 216,779 28,524 (18,916) (1,170) 225,217 110,356
	$ 186,979	234,680
	$ 91,620	114,993

～17～

Notes to the Consolidated Interim Financial Statements

REGAL HOLDING CO., LTD. AND ITS SUBSIDIARIES

	For the three months	ended September 30		For the nine months e
	2022 108,154	2021		2022 236,650
$		120,966
	16,677 (462)	9,963 (12,618)		17,089 3,267
$	16,215	(2,655)		20,356
$	8,172	4,882		8,374
$	7,945	(1,301)		9,974
			$ (1,511) (471) (68,056)
			$ (70,038)
			$ (33,347)

(g) Property, plant and equipment

The cost, depreciation, and impairment losses of the property, plant and equipment of the Group of the six months ended at September 30, 2022 and 2021 were as follows:

～ 18 ～

REGAL HOLDING CO., LTD. AND ITS SUBSIDIARIES Notes to the Consolidated Interim Financial Statements

Land $ 145,829 - - - 1,834	Buildings 216,102 8,253 (1,299) 10,663 2,590	Machinery and equipment 297,708 23,123 (16,474) 2,519 3,678	Transporta tion equipment 16,693 7,447 (2,283) - 172	Office equipment 129,071 9,857 (7,834) 1,920 1,597	Land improveme nt 9,477 137 (12) - 115	Unfinished work and Equipment to be inspected 5,183 19,946 - (15,102) 30	Total 820,063 68,763 (27,902) - 10,016
$ 147,663	236,309	310,554	22,029	134,611	9,717	10,057	870,940
$ 166,951 - - - (22,223)	239,723 40 - 7,297 (32,468)	309,352 27,202 (9,928) 6,846 (43,018)	28,933 562 (9,719) - (3,152)	136,930 6,920 (3,962) 4,426 (18,779)	10,271 402 - - (1,273)	3,994 21,260 - (18,569) (738)	896,154 56,386 (23,609) - (121,651)
$ 144,728	214,592	290,454	16,624	125,535	9,400	5,947	807,280
$ - - - -	165,417 9,776 (1,276) 2,019	228,086 19,141 (16,359) 2,849	11,722 2,939 (2,283) 143	105,112 9,768 (7,502) 1,308	8,831 168 (12) 108	- - - -	519,168 41,792 (27,432) 6,427
$ -	175,936	233,217	12,521	108,686	9,095	-	539,955
$ - - - -	176,580 8,941 - (24,186)	250,168 17,558 (9,823) (33,889)	20,552 2,167 (9,545) (2,173)	112,547 9,016 (3,954) (15,390)	9,796 116 - (1,199)	- - - -	569,643 37,798 (23,322) (76,837)
$ -	161,335	224,014	11,001	102,219	8,713	-	507,282
$ 145,829	50,685	69,622	4,971	23,959	646	5,183	300,895
$ 147,663	60,373	76,837	9,508	25,925	622	10,057	330,985
$ 144,728	53,257	66,440	5,623	23,316	687	5,947	299,998

Please refer to Note 8 for the disclosure of assets pledged as collateral for loans.

(h) Right-of-use assets

The information for the cost and depreciation about the leases for which the Group as lessee was as follows:

Cost: Balance at January 1, 2022 Additions Disposal (early termination) Balance at September 30, 2022 Balance at September 30, 2021 (also the balance on January 1, 2021) Accumulated depreciation: Balance at January 1, 2022 Depreciation Disposal (early termination) Balance at September 30, 2022	Buildings $ 2,668 2,087 (2,668) $ 2,087 $ 2,668 $ 1,482 671 (1,482) $ 671

～ 19 ～

REGAL HOLDING CO., LTD. AND ITS SUBSIDIARIES Notes to the Consolidated Interim Financial Statements

Balance at January 1, 2021 Depreciation Balance at September 30, 2021 Carrying amount Balance at January 1, 2022 Balance at September 30, 2022 Balance at September 30, 2021	Buildings $ 593 667 $ 1,260 $ 1,186 $ 1,416 $ 1,408

(i) Intangible assets

The cost, amortization and impairment losses of the intangible assets of the Group for the nine months ended at September 30, 2022 and 2021 were as follows:

Costs: Balance at January 1, 2022 Additions Disposal Foreign currency translation effect Balance at September 30, 2022 Balance at January 1, 2021 Additions Reclassification Foreign currency translation effect Balance at September 30, 2021 Amortization and impairment loss: Balance at January 1, 2022 Amortization Disposal Foreign currency translation effect Balance at September 30, 2022 Balance at January 1, 2021 Amortization Foreign currency translation effect Balance at September 30, 2021	Computer software $ 54,392 1,468 (859) 643	Trademark 1,223 88 - 15	Total 55,615 1,556 (859) 658 56,970 60,812 2,224 (252) (7,906) 54,878 46,501 2,150 (831) 547 48,367 48,702 3,278 (6,528) 45,452
	$ 55,644	1,326
	$ 59,536 2,161 (293) (7,728)	1,276 63 41 (178)
	$ 53,676	1,202
	$ 46,417 2,111 (831) 546	84 39 - 1
	$ 48,243	124
	$ 48,690 3,213 (6,521)	12 65 (7)
	$ 45,382	70

～ 20 ～

REGAL HOLDING CO., LTD. AND ITS SUBSIDIARIES Notes to the Consolidated Interim Financial Statements

Carrying amount: Balance at January 1, 2022 Balance at September 30, 2022 Balance at September 30, 2021	$ 7,975 1,139 9,114 $ 7,401 1,202 8,603 $ 8,294 1,132 9,426

(j) Short-term loans

Credit loans Guaranteed bank loans Total Unused credit lines Interest rate (%)	September 30, 2022 $ - 16,904 $ 16,904	September 30, 2022 $ - 16,904 $ 16,904	December 31, 2021 44,264 - 44,264	September 30, 2021 87,098 41,420 128,518 824,258 0.96~2.10
	$ 803,050		925,093
		2.50	0.96~2.10

Please refer to Note 8 for the information of the collateral for loans.

(k) Corporate bonds payable

The information on the issuance of corporate bonds was as follows:

September 30, 2022 $ 250,000 (6,218) - (300)	September 30, 2022 $ 250,000 (6,218) - (300)	September 30, 2022 $ 250,000 (6,218) - (300)	December 31, 2021 250,000 (10,111) - (100)	December 31, 2021 250,000 (10,111) - (100)	December 31, 2021 250,000 (10,111) - (100)
			-
$ 243,482				239,789
$ 5,219				1,075
$ 10,754				10,763
	For the three months	2021 (475) ended September 30		For the nine m	onths e
				2022
$ 1,316		1,290		3,886

～21～

REGAL HOLDING CO., LTD. AND ITS SUBSIDIARIES Notes to the Consolidated Interim Financial Statements

The Group did not issue, repurchase or repay the corporate bonds payables for the nine months ended at September 30, 2022 and 2021. For more information, please refer to Note 6(k) of the consolidated financial report for the year 2021. From September 11, 2022, the price of the Company's convertible corporate bonds was adjusted from 29.9 dollar per share to 27.8 dollar per share.

Please refer to Note 6(o) for information on the conversion of corporate bonds payable to ordinary shares from January 1, 2022 to September 30, 2022. There was no conversion of corporate bonds payable into ordinary shares from January 1, 2021 to September 30, 2021.

The information about financial liabilities measured at fair value through profit or loss were as follows:

Embedded derivative financial instruments (put options and call options) Balance at the beginning Valuation loss in the period Conversion in the period	September 30, 2022 $ 1,075 4,145 (1)	September 30, 2021 1,000 100 - 1,100
	$ 5,219

The bondholders are entitled to exercise the put option on December 2, 2022 to sell back the bonds to the Company. As such, the Company reported the bonds payable and the embedded derivative financial instruments under the current liabilities account on December 31, 2021 and September 30, 2022.

－
1. The equity components were recorded as Capital surplus stock options, and the information were as follows:

Balance at the beginning Addition in the period Less: underwriting expenses Conversion in the period Balance at the end	September 30, 2022 $ 10,763 - - (9)	September 30, 2021 10,767 - - - 10,767
	$ 10,754

～22～

REGAL HOLDING CO., LTD. AND ITS SUBSIDIARIES Notes to the Consolidated Interim Financial Statements

(l) Lease liabilities

The lease liabilities of the Group were as follows:

Less than one year Between one to five year Current Non-current Less than one year Between one to five year Current Non-current Less than one year Between one to five year Current Non-current	September 30, 2022	September 30, 2022	Present value of minimum lease payments 896 530 1,426 896 530 Present value of minimum lease payments 900 304 1,204 900 304 Present value of minimum lease payments 896 530 1,426 896 530
	Future minimum lease payments $ 914 533	Interests 18 3
	$ 1,447	21
	$ 914	18
	$ 533	3
	December 31, 2021
	Future minimum lease payments $ 914 305	Interests 14 1
	$ 1,219	15
	$ 914	14
	$ 305	1
	September 30, 2021
	Future minimum lease payments $ 914 533	Interests 18 3
	$ 1,447	21
	$ 914	18
	$ 533	3

～ 23 ～

REGAL HOLDING CO., LTD. AND ITS SUBSIDIARIES Notes to the Consolidated Interim Financial Statements

The amounts recognized in profit or losses were as follows:

For the three months ended September 30	For the three months ended September 30	For the three months ended September 30	For the three months ended September 30
2022 $ 7	2021	2022 24
$ 353	649	1,169	1,478
$ 137	116	347	363

The amounts recognized in the statement of cash flows for the Group were as follows:

Total cash outflow for leases	For the nine months ended September 30 2022 2021 $ 2,202 2,551	For the nine months ended September 30 2022 2021 $ 2,202 2,551
		2022

1. Leases about buildings

The Group leases buildings for its office space, which typically run for a period of 2 years. Some leases include an option to renew the lease for an additional period of the same duration after the end of the contract.

2. Other leases

The Group leases printers and other office equipment with contract terms of one to five years. These leases are short-term leases or leases of low-value items. The Group has chosen not to recognize as right-of-use assets and lease liabilities for these leases.

(m) Employee benefits

1. Defined benefit plans

Since there were no material market fluctuations, material reductions, liquidations or other material one-off events after the end of the previous fiscal year, the Group adopted the pension plan calculated on December 31, 2021 and 2020 to measure and disclose in interim periods.

～ 24 ～

REGAL HOLDING CO., LTD. AND ITS SUBSIDIARIES Notes to the Consolidated Interim Financial Statements

The details of the Group's costs and expenses were as follows:

Operating costs Operating expenses	For the three months ended September 30	For the three months ended September 30	For the three months ended September 30	For the three months ended September 30
		2022 $ 772 316	2021	2022 2,348 960
		$ 1,088	936	3,308

2. Defined contribution plans

The Group allocates 6% of each employee's monthly wages to the labor pension personal account at the Bureau of Labor Insurance in accordance with the provisions of the Labor Pension Act. Under these defined contribution plans, the Group allocates a fixed amount to the Bureau of Labor Insurance without additional legal or deductive obligation.

The pension costs incurred from the contributions to the Bureau of Labor Insurance amounted to $82 thousand and $132 thousand for the three months ended September 30, 2022 and 2021; and amounted to $263 thousand and $384 thousand for the nine months ended September 30, 2022 and 2021, respectively.

(n) Income taxes

The Company and Chaporo are incorporated in the Cayman Islands and the Republic of the Seychelles, respectively, where corporate income tax is not required to be paid. In the Group, RJM, RGP, RMS, Linden and RIC's statutory income tax rate are 20%. GVG Hong Kong's statutory income tax rate is 16.5%. GVG Shenzhen's statutory income tax rate is 25%.
The information for the income tax expenses of the Group were as follows:

For the three months ended September 30	For the three months ended September 30	For the three months ended September 30
2022 $ 20,835 3	2021	2022 24,703 (395)
$ 20,838	23,614	24,308

3. Situation of levy and approval of income tax

The Company is not required to pay income tax in the country where it is incorporated.

～ 25 ～

REGAL HOLDING CO., LTD. AND ITS SUBSIDIARIES Notes to the Consolidated Interim Financial Statements

In Thailand, where RJM, RGP, RMS, and Linden are operating, the corporate income tax declarations are examined by the tax authority without issuing official approval certificates. Income taxes paid in prior years have received income tax receipts up to 2021. Since RPM is a newly established company, it has not yet filed an income tax settlement and declaration. Corporate income tax declarations of GVG Hong Kong and GVG Shenzhen have been submitted to the tax authority department through 2020, as described in Note 4(b). GVG Hong Kong and GVG Shenzhen are in the liquidation process now, and GVG Shenzhen has obtained the local tax clearance certificate on July, 19, 2022. Corporate income tax declarations submitted by the Company's Taiwan branch and RIC had been approved by the tax authority department through 2020.

(o) Capital and other equity

Except for the following, there were no significant changes in the Group's capital and other equity during the nine months ended September 30, 2022 and 2021. For the relevant information, please refer to Note 6(o) of the consolidated financial statements for 2021.

Reconciliation of shares outstanding and issued of the Group for the nine months ended September 30, 2022 and 2021 were as follows:

(Unit: thousand shares)

022 and 2021 were as follows:		(Unit: thousand shares)	(Unit: thousand shares)
Balance of outstanding shares on January 1 Conversion of convertible bonds Balance of outstanding shares on September 30 Total restricted shares granted to employees on September 30 Balance of total shares issued on September 30		Common Stock For the nine months ended September 30 2022 2021 38,389 38,273 7 - 38,396 38,273 - 113 38,396 38,386
		2022 38,389 7
		38,396
		-
		38,396

As of September 30, 2022, December 31, 2021 and September 30, 2021, the total value of authorized ordinary shares of the Group were all amount to $600,000 thousand, with a par value of $10 per share. There were $383,960 thousand, $383,893 thousand and $383,860 thousand ordinary shares issued at September 30, 2022, December 31, 2021 and September 30, 2021, respectively.

1. Issuance of common stock

From January 1, 2022 to September 30, 2022, the Company issued 7,000 new shares at par value for a total amount of $67 thousand due to the exercise of conversion rights by holders of

～26～

REGAL HOLDING CO., LTD. AND ITS SUBSIDIARIES Notes to the Consolidated Interim Financial Statements

convertible bonds. There was no such issue from January 1, 2021 to September 30, 2021.

～27～

REGAL HOLDING CO., LTD. AND ITS SUBSIDIARIES Notes to the Consolidated Interim Financial Statements

2. Capital surplus

The balance of capital surplus of the Group was as follows:

September 30, 2022 Share premium on stock issuance $ 354,846 Restricted shares for employees 9,899 Issuance of convertible bonds-stock options 10,754 $ 375,499	September 30, 2022 Share premium on stock issuance $ 354,846 Restricted shares for employees 9,899 Issuance of convertible bonds-stock options 10,754 $ 375,499	December 31, 2021 418,437 9,899 10,763	September 30, 2021 418,370 9,899 10,767 439,036
	$ 375,499	439,099

On June 10, 2022, the shareholders' meeting resolved to distribute cash dividends to shareholders out of capital surplus of $63,727 thousand.

The dividend information resolved by the shareholders' meeting of the Company would be available on the website of Market Observation Post System.

3. Earnings distribution

The earnings distribution proposal for the year 2020 was resolved by the shareholders' meeting on July 30, 2021, and the dividend distributed to the shareholders were as follows:

Dividends distributed to shareholders: Cash	2020 Amount per share Total Amount $ 0.500 19,193	2020 Amount per share Total Amount $ 0.500 19,193
	Amount per share
	$ 0.500

The earnings distribution proposal for the year 2021 was resolved by the shareholders' meeting on June 10, 2022 that the cash dividend distributed to the shareholders were $0 thousand.

The information resolved about earnings distribution by the shareholders' meeting of the Company would be available on the website of Market Observation Post System.

4. Other equity, net of tax

Balance at January 1, 2022	Exchange differences on translation of foreign financial statements $ (116,635)	Unrealized gains (losses) from financial assets measured at fair value through profit or loss (11,906)	Share-based payments- un earned compensatio n -	Total (128,541)

～28～

REGAL HOLDING CO., LTD. AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements

Exchange differences on foreign operations Disposal of subsidiaries Balance at September 30, 2022 Balance at January 1, 2021 Exchange differences on foreign operations Share-based payments Balance at September 30, 2021	12,602 - - 12,602 (99) - - (99) $ (104,132) (11,906) - (116,038) $ 18,686 (11,318) (1,750) 5,618 (142,193) - - (142,193) - - 1,517 1,517 $ (123,507) (11,318) (233) (135,058)

5. Non-controlling interests, net of tax

Balance at the beginning Share attributable to non-controlling interests: Net income Exchange differences on foreign operations Changes in non-controlling interests Subsidiaries distributed cash dividends to non-controlling interests	For the nine months ended September 30 2022 2021 $ 115,469 157,616 8,054 6,856 1,591 (17,076) 934 439 (33,347) (36,914) $ 92,701 110,921	For the nine months ended September 30 2022 2021 $ 115,469 157,616 8,054 6,856 1,591 (17,076) 934 439 (33,347) (36,914) $ 92,701 110,921
		2022 $ 115,469 8,054 1,591 934 (33,347)
		$ 92,701

～29～

REGAL HOLDING CO., LTD. AND ITS SUBSIDIARIES Notes to the Consolidated Interim Financial Statements

(p) Share-based payments

The information about restricted shares for employees was as follows:

Shares not meeting vesting conditions as of September 30 (also the quantity as of January 1)	(Unit: thousand shares) For the nine months ended September 30 2022 2021 - 113	(Unit: thousand shares) For the nine months ended September 30 2022 2021 - 113	(Unit: thousand shares) For the nine months ended September 30 2022 2021 - 113
		2022 -

From January 1, 2021 to September 30, 2021, the Company recognized share-based payment costs of $1,517 thousand. The unvested share-based payments were $233 thousand as of September 30, 2021, which was recorded as a deduction from other equity. The new shares with restricted employee rights were acquired in November, 2021. For the changes in equity resulting from the issuance and cancellation of new shares with restricted employee rights, please refer to Note 6(o) of the consolidated financial statements of year 2021.

(q) Earnings per share

The information about basic and diluted earnings per share was as follows:

For the three months ended September 30	For the three months ended September 30	For the three months ended September 30
2022 $ 61,981	2021	2022 46,603
38,396	38,273	38,395
$ 1.61	1.24	1.21

～30～

REGAL HOLDING CO., LTD. AND ITS SUBSIDIARIES Notes to the Consolidated Interim Financial Statements

the three months ended September 30	the three months ended September 30	the three months ended September 30
2022 $ 61,981 1,316 2,997 $ 66,294	2021	2022 46,603 3,886 4,145
		54,634
38,396 27 8,982 -	38,273 34 8,361 104	38,395 27 8,984 -
47,405	46,772	47,406
$ 1.40	1.03	1.15

(r) Revenue from contracts with customers
Disaggregation of revenue

Primary markets: Thailand United States France United Kingdom Canada Others	For the three months ended September 30	For the three months ended September 30	For the three months ended September 30
		2022 $ 320,183 41,651 32,482 52,088 38,963 46,108	2021

～31～

REGAL HOLDING CO., LTD. AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements

						(Unit:	thousand shares)	thousand shares)
	For the three months ended September				30 For the nine months ended September 30
		2022		2021		2022		2021
	$	531,475		610,246		1,280,169		1,516,734
		2022		2021		2022		2021
Main products/service lines:
Designing, manufacturing and	$	490,974		579,264		1,199,581		1,454,800
selling jewelry and gems
Electroplating		40,501		30,622		80,588		61,934
	$	531,475		610,246		1,280,169		1,516,734
2. Remaining balance of contracts
		September 30,		December		31,	September 30,
		2022			2021			2021
Trade receivables	$	534,267			537,664			577,691
Less: allowance for loss		(296)			(1,815)			(1,466)
Total	$	533,971			535,849			576,225
Contract liabilities (recorded as	$		265			1,766		5,442
other current liabilities)

For details on trade receivables and impairments, please refer to Note 6(c).

The opening balances of contract liabilities on January 1, 2022 and 2021 which were recognized as income from January 1 to September 30, 2022, and January 1 to September 30, 2021, were $1,709 thousand, and $3,605 thousand, respectively.

The change in contract liabilities was mainly due to the difference between the point at which the Company transfers goods or services to customers to satisfy its obligations and the point at which customers pay.

～32～

REGAL HOLDING CO., LTD. AND ITS SUBSIDIARIES Notes to the Consolidated Interim Financial Statements

(s) Employees’ and directors’ compensation

According to the amendment of the Company's Articles of Incorporation which was approved during the shareholders' meeting at May 20, 2016, no less than 1% of the current-year profit before tax, shall be distributed as employee compensation, and no more than 3% of the current-year profit before tax as remuneration to directors. However, if the Company has an accumulated deficit, the profit should first be used to offset the deficit. The compensation and remuneration shall be made by way of cash or stock, or a combination of both, wherein the recipients may include the employees of the Company's affiliated companies who meet certain conditions decided by the Board of Directors of the Company.

The estimated amounts of employees' compensation for the periods of July 1, 2022 to September 30, 2022, July 1, 2021 to September 30, 2021, January 1, 2022 to September 30, 2022 and January 1, 2021 to September 30, 2021 are $540 thousand, $508 thousand, $540 thousand and $935 thousand, respectively, and the estimated amounts of directors' remuneration are $0. These amounts were calculated using the Company's net income before tax without the compensation to employees and directors for each period, multiplied by the proposed percentage which is stated under the Company's Article of Incorporation. These compensations were expensed under operating expenses for each period.

If there is a difference between the actual distribution amount in the next year and the estimated amount, it will be treated according to the change in accounting estimates, and the difference will be recognized as the profit or loss of the following year. If the Board of Directors decides to pay employees in stock, the basis for calculating the number of shares for stock compensation is based on the closing price on the day before the decision of the Board of Directors.

～33～

REGAL HOLDING CO., LTD. AND ITS SUBSIDIARIES Notes to the Consolidated Interim Financial Statements

The Company's employee compensation and directors' remuneration approved by the Board of Directors for the year 2020 were $360 thousand and $0 thousand, respectively. The difference between the estimated amounts in the 2020 consolidated financial report and the approved amount was $360 thousand. The Company recognized the difference as profit or loss in year 2021. The Company's employees’ compensation and directors' remuneration approved by the Board of Directors for the year 2021 were $2,819 thousand and $1,410 thousand, respectively. The difference between the estimated amount in the 2021 consolidated financial report and the approved amount was $2,819 thousand and $1,410 thousand, respectively. The Company recognized the difference as profit or loss in year 2022. The employees’ compensation and directors' remuneration information would be available on the website of Market Observation Post System.

(t) Non-operating income and expenses

1. Interest income

The details of interest income of the Group were as follows:

Interest income from bank deposits	For the three months ended September 30	For the three months ended September 30	For the three 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
		2022 $ 463	2021		2022 760	2021 262

2. Other income

The details of other income of the Group were as follows:

Others	For the three months ended September 30	For the three months ended September 30	For the three 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
		2022 $ 465	2021		2022 6,096	2021 4,900

3. Other gains and losses

The details of other gains or losses of the Group were as follows:

For the three months ended September 30 For the nine months ended September 30 2022 2021 2022 2021 Gains (losses) on disposal of property, plant and equipment $ (7) 486 253 1,036 Losses on disposal of intangible assets - - (28) - Gains (losses) on disposal of investments (6) - 99 - Gains on lease modification - - 17 - Foreign exchange gains (losses) 14,721 (1,517) 38,074 13,053	For the three months ended September 30	For the three months ended September 30	For the three 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
		2022 $ (7) - (6) - 14,721	2021		2022 253 (28) 99 17 38,074	2021 1,036 - - - 13,053

～34～

REGAL HOLDING CO., LTD. AND ITS SUBSIDIARIES Notes to the Consolidated Interim Financial Statements

Gains (losses) from financial liabilities at fair value through profit or loss Others Total	(2,997) 475 (4,145) (100) (14) 1 (778) (32) $ 11,697 (555) 33,492 13,957

4. Financial costs

The details of financial costs of the Group were as follows:

	For the	three months ended	September 30 For the nine months ended	September 30 For the nine months ended	September 30
		2022	2021	2022	2021
Interest expenses from bank loans $		1	146	137	2,537
Corporate bonds payable		1,316	1,290	3,886	3,807
Interest expenses from lease
liabilities		7	7	24	24
	$	1,324	1,443	4,047	6,368

(u) Financial instruments

Except for the following, there were no significant changes in the fair value of the Group's financial instruments and exposure to credit risk, liquidity risk and market risk due to financial instruments. For relevant information, please refer to Note 6(u) of the 2021 consolidated financial statements.

～35～

REGAL HOLDING CO., LTD. AND ITS SUBSIDIARIES Notes to the Consolidated Interim Financial Statements

1. Credit risk

(1) Credit risk exposure

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

(2) Concentration of credit risk

The Group's exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, the managements also consider the statistical information on the Group's customer base, including the default risk of the industry and country in which customers operate. These factors may have an influence on credit risk. The Group's trade receivables were obviously concentrated on three main customers, which accounted for 79%, 84% and 86% of the total amount of trade receivables as of September 30, 2022, December 31, 2021 and September 30, 2020. As of September 30, 2022, December 31, 2021 and September 30, 2021, the Group's trade receivables concentrated on three main customers were $420,085 thousand, $444,817 thousand and $495,938 thousand, respectively.

(3) Credit risk of receivables

For information about credit risk of trade receivables, and details about other receivables, please refer to Note 6(c) and Note 6(d) respectively.

2. Liquidity risk

The following table shows the contractual maturities of financial liabilities, excluding the effect of estimated interests:

September 30, 2022 Non-derivative financial liabilities Short-term loans Payables Lease liabilities Corporate bonds payable (including embedded derivative financial instruments) Guarantee deposits received	Carrying amount	Contractual cash flows	Less than 1 year	1-2 years	More than 2 years - - - - 3,931
	$ 16,904 110,860 1,426 248,701 3,931	16,904 110,860 1,426 248,701 3,931	16,904 110,860 896 248,701 -	- - 530 - -
	$ 381,822	381,822	377,361	530	3,931

～36～

REGAL HOLDING CO., LTD. AND ITS SUBSIDIARIES Notes to the Consolidated Interim Financial Statements

December 31, 2021 Non-derivative financial liabilities Short-term loans Payables Lease liabilities Corporate bonds payable (including embedded derivative financial instruments) Guarantee deposits received September 30, 2021 Non-derivative financial liabilities Short-term loans Payables Lease liabilities Corporate bonds payable (including embedded derivative financial instruments) Guarantee deposits received	$ 44,264 44,264 44,264 - - 118,833 118,833 118,833 - - 1,204 1,204 900 304 - 240,864 240,864 240,864 - - 3,593 3,593 - - 3,593
	$ 408,758 408,758 404,861 304 3,593
	$ 128,518 128,518 128,518 - - 119,076 119,076 119,076 - - 1,426 1,426 896 530 - 239,688 239,688 - 239,688 - 3,461 3,461 - - 3,461
	$ 492,169 492,169 248,490 240,218 3,461

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

3. Currency risk

(1) Currency risk exposure

The Group's financial assets and liabilities which exposed to significant foreign currency exchange rate risk were as follows:

September 30, 2022	September 30, 2022	September 30, 2022	December 31, 2021	December 31, 2021	December 31, 2021	September 30,	September 30,
Foreign currency (in thousan dth)	111111 111111 11 Exchan ge rate	111111 111111 11 Amoun t	Foreign currenc y (in thousa ndth)	111111 111111 11 Exchan ge rate	111111 111111 11 Amoun t	Foreign currenc y (in thousa ndth)	111111 111111 11 Exchan ge rate
$ 5,994 332	31.75 31.75	190,305 10,227	7,418 2,393	27.68 27.68	205,326 66,237	4,760 2,381	27.85 27.85

(2) Sensitivity analysis

The Group's exposure to foreign currency risk mainly arises from the translation of the foreign

currency exchange gains or losses on trade receivables and short-term loans, which are denominated in foreign currency.

～37～

REGAL HOLDING CO., LTD. AND ITS SUBSIDIARIES Notes to the Consolidated Interim Financial Statements

With all other factors held constant, a strengthening (weakening) of the TWD against the USD for 1% as of September 30, 2022 and 2021 would have decreased (increased) profit before tax for the nine months ended September 30, 2022 and 2021, by $1,801 thousand and $663 thousand, respectively. The analysis is performed on the same basis.

(3) Exchange gains or losses of monetary items

Due to the different types of functional currency of the Group, the Group disclosed its exchange gains or losses of monetary items aggregately. Foreign currency exchange gains or losses for the Group (including both realized and unrealized) from July 1 to September 30, 2022, July 1 to September 30, 2021, January 1 to September 30, 2022 and January 1 to September 30, 2021 were $14,721 thousand, $(1,517) thousand, $38,074 thousand and $13,053 thousand, respectively.

Interest rate analysis

The interest rate risk exposure of the Group's financial assets and financial liabilities would be described in “Liquidity risk management” in this Note.

If the interest rate increases / decreases by 1%, the Group's profit before tax will decrease / increase by $169 thousand and $1,285 thousand for the nine months ended September 30, 2022 and 2021 with all other variable factors remaining constant. This was mainly due to the Group's borrowing at variable rate.

5. Information about fair value

(1) Categories and fair value of financial instrument

The carrying amounts and fair values of the Group's financial assets and financial liabilities (including fair value hierarchy information, except that if the carrying amounts of financial instruments not carried at fair value are a reasonable approximation of fair value, disclosure of fair value information is not required by regulation) were as follows:

～38～

REGAL HOLDING CO., LTD. AND ITS SUBSIDIARIES Notes to the Consolidated Interim Financial Statements

	September 30, 2022	September 30, 2022	September 30, 2022
Carrying amount $ 294		Fair value
	Level 1 -	Level 2 -	Level 3 294
165,042 533,971 9,129 8,932	- - - -	- - - -	- - - -
717,074	-	-	-
$ 717,368	-	-	294
$ 5,219	-	-	5,219
16,904 28,526 82,334 1,426 243,482 3,931	- - - - - -	- - - - - -	- - - - - -
376,603	-	-	-
$ 381,822	-	-	5,219

～39～

REGAL HOLDING CO., LTD. AND ITS SUBSIDIARIES Notes to the Consolidated Interim Financial Statements

	December 31, 2021	December 31, 2021	December 31, 2021
Carrying amount $ 294		Fair value
	Level 1 -	Level 2 -	Level 3 294
270,283 535,849 7,766 9,196	- - - -	- - - -	- - - -
823,094	-	-	-
$ 823,388	-	-	294
$ 1,075	-	-	1,075
44,264 17,524 101,309 1,204 239,789 3,593	- - - - - -	- - - - - -	- - - - - -
407,683	-	-	-
$ 408,758	-	-	1,075
	September 30, 2021
Carrying amount $ 882		Fair value
	Level 1 -	Level 2 -	Level 3 882
119,918 576,225	- -	- -	- -

～40～

REGAL HOLDING CO., LTD. AND ITS SUBSIDIARIES Notes to the Consolidated Interim Financial Statements

Other payables Other financial assets`－` non-current Subtotal Total Financial liabilities measured at fair value through profit or loss Put and call options of corporate bonds Financial liabilities measured at amortized cost Bank loans Notes and accounts payables Other payables Lease liabilities Bonds payables Guarantee deposits received Subtotal Total	17,672 - - - - 9,163 - - - - 722,978 - - - - $ 723,860 - - 882 882 $ 1,100 - - 1,100 1,100 128,518 - - - - 30,928 - - - - 88,148 - - - - 1,426 - - - - 238,588 - - - - 3,461 - - - - 491,069 - - - - $ 492,169 - - 1,100 1,100

～41～

REGAL HOLDING CO., LTD. AND ITS SUBSIDIARIES Notes to the Consolidated Interim Financial Statements

(2)The Group seeks to use market observable inputs when measuring the fair values of assets and liabilities. Different levels of the fair value hierarchy to be used in determining the fair value of financial instruments, and the classifications are as follows:
‧ Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
‧ Level 2: other than quoted prices included within Level 1, inputs are observable for assets or liabilities, either directly (i.e. such as prices) or indirectly (i.e. derived from calculation of prices).
‧ Level 3: inputs for assets or liabilities are not based on observable market data (unobservable inputs).
－
(3) Valuation techniques for financial instruments measured at fair value non-derivative financial instruments

The fair value of unlisted equity instruments that the Group possesses are estimated and calculated by using the comparable company approach with the Liquidity Discount Model to adjust prices.

(4) Evaluation of derivative financial instruments

The put options and call options of the corporate bonds payables are based on Binomial Pricing Model to estimate the fair value.

(5) Details of changes in Level 3

ils of changes in Level 3
Balance at January 1, 2022 Recognized in profit or loss Conversion of convertible bonds Balance at September 30, 2022 Balance at January 1, 2021 Recognized in profit or loss Balance at September 30, 2021	Current/Non-c urrent financial liabilities at fair value through profit or loss Non-current financial assets at fair value through other comprehensive income $ 1,075 294 4,145 - (1) -	Total 1,369 4,145 (1) 5,513 1,882 100 1,982
	$ 5,219 294
	$ 1,000 882 100 -
	$ 1,100 882

～42～

REGAL HOLDING CO., LTD. AND ITS SUBSIDIARIES Notes to the Consolidated Interim Financial Statements

The above total gains or losses were reported in “other gains or losses”. Among them, the figures that were related to the assets still held until September 30, 2022 and 2021 were as follows:

		For the three	months ended September 30 For the	months ended September 30 For the	months ended September 30 For the	nine months ended	nine months ended	September 30	September 30
		2022		2021		2022		2021
Total gains or losses
Gains or losses (reported in		$	(2,997)		475		(4,145)	(100)
“other gains or	losses”)
tified information on significant unobservable inputs (Level 3) used in fair value
urement
ntified information of significant unobservable inputs was					as follows:
							Relationship
							between significant
						unobservable inputs
	Valuation			Significant			and fair	value
Item	technique		unobservable inputs				measurement
Financial assets at	Comparable		‧	Discount for	lack of	‧	The estimated		fair
fair value through	company			market liquidity			value	would
other	method						decrease		if
comprehensive							liquidity	discount
income`－`equity							were higher
investments
without active
markets
Financial	Binomial	pricing	‧ Volatility			‧	The higher		the
liabilities at fair	model						volatility,		the
value through							higher	the	fair
profit or loss`－`							value
non-current

(6) Quantified information on significant unobservable inputs (Level 3) used in fair value measurement

Quantified information of significant unobservable inputs was as follows:

－
(7) Fair value measurement in Level 3 sensitivity analysis of reasonably possible alternative assumptions

The Group's fair value measurement of financial instruments is reasonable, but the use of different valuation models or valuation parameters may result in different valuation results. For financial instruments classified as Level 3, the significant unobservable inputs to the fair value were mainly the lack of market liquidity discount. However, since the potential changes in the lack of market liquidity discount would not result in a significant potential financial impact, the Group is not intended to disclose its sensitivity analysis.

(v) Financial risk management

～43～

REGAL HOLDING CO., LTD. AND ITS SUBSIDIARIES Notes to the Consolidated Interim Financial Statements

There were no significant changes in the Group's financial risk management objectives and the policies from those disclosed in Note 6(v) of the 2021 consolidated financial statements.

(w) Capital management

The Group's capital management objectives, policies and procedures are consistent with those disclosed in the 2021 consolidated financial statements, and there were no significant changes in the aggregated quantitative information for capital management. For related information, please refer to Note 6(w) of the 2021 consolidated financial statements.

(x) Investing and financing activities not affecting cash flows

The reconciliation of the Group's liabilities from financing activities for the nine months ended September 30, 2022 and 2021 was as follows:

Short-term loans Lease liabilities Corporate bonds payable Total liabilities from financing activities	January 1, 2022 Cash flows $ 44,264 (27,236) 1,204 (662) 239,789 -	Non-cash changes New / Cancel lease Conversio n of bonds Discount amortizati on Foreign exchange movement September 30, 2022 - - - (124) 16,904 884 - - - 1,426 - (193) 3,886 - 243,482
	$ 285,257 (27,898)	884 (193) 3,886 (124) 261,812

Short-term loans Lease liabilities Corporate bonds payable Total liabilities from financing activities	January 1, 2021 Cash flows $ 370,140 (215,944) 2,088 (686) 234,781 -	Non-cash changes Discount amortization Foreign exchange movement September 30, 2021 - (25,678) 128,518 - 24 1,426 3,807 - 238,588
	$ 607,009 (216,630)	3,807 (25,654) 368,532

～44～

REGAL HOLDING CO., LTD. AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements

(7) Related-party transactions:

The compensation of main management personnel included:

Short-term employee benefits Post-employment benefits d assets: Pledged assets Object	Short-term employee benefits Post-employment benefits d assets: Pledged assets Object	Short-term employee benefits Post-employment benefits d assets: Pledged assets Object	Short-term employee benefits Post-employment benefits d assets: Pledged assets Object	Short-term employee benefits Post-employment benefits d assets: Pledged assets Object	Short-term employee benefits Post-employment benefits d assets: Pledged assets Object
		2022 $ 7,179 35	2021		2022 16,489 107

		$ 7,214		4,723	16,596
		September 30, 2022 $ 120,716 12,930 4,029		December 31, 2021 145,829 18,630 3,971
Property, plant and equipment: Land Buildings Other financial assets `－`non-current: Refundable deposits	Short-term loans Short-term loans Guarantee for electricity supply and fuel cards
		$ 137,675		168,430

(8) Pledged assets:

(9) Commitments and contingencies:

(a) The guarantee amount provided by the bank for the Company was as follows:

Electricity guarantee	September 30, 2022 $ 3,799	December 31, 2021 3,743	September 30, 2021 3,711

(b) As of September 30, 2022, the Group entered into contracts for $26,669 thousand and paid $8,961 thousand for the acquisition of equipment (recorded under property, plant and equipment) respectively. There were no significant unrecognized contractual commitments as of December 31, 2021 and September 30, 2021.

～45～

REGAL HOLDING CO., LTD. AND ITS SUBSIDIARIES Notes to the Consolidated Interim Financial Statements

(10) Losses due to major disasters: None

(11) Subsequent events: None

(12) Other:

(a) The summary of personnel costs, depreciation, depletion, and amortization by function was as follows:

Function Account	For the three months ended September 30	For the three months ended September 30	For the three months ended September 30	For the three months ended September 30	For the three months ended September 30	For the three months ended September 30
	2022			2021
	Operating cost	Operating expenses	Total	Operating cost	Operating expenses	Total
Personnel costs Salaries Health insurance Pension Other personnel expense Depreciation Depletion Amortization	102,522 - 772 4,314 9,578 - 247	40,271 274 398 3,760 5,044 - 466	142,793 274 1,170 8,074 14,622 - 713	97,809 - 599 5,235 8,528 - 298	38,232 306 469 8,430 4,213 - 885	136,041 306 1,068 13,665 12,741 - 1,183

Function Account	For the nine months ended September 30
	2022			2021
	Operating cost	Operating expenses	Total	Operating cost	Operating expenses	Total
Personnel costs Salaries Health insurance Pension Other personnel expense Depreciation Depletion Amortization	286,249 - 2,348 12,068 27,538 - 717	114,318 723 1,223 12,561 14,925 - 1,433	400,567 723 3,571 24,629 42,463 - 2,150	300,234 - 1,893 11,829 24,891 - 803	123,711 829 1,448 18,820 13,574 - 2,475	423,945 829 3,341 30,649 38,465 - 3,278

(b) Seasonality of operation

The Group's operations are not affected by seasonal or cyclical factors.

～46～

REGAL HOLDING CO., LTD. AND ITS SUBSIDIARIES Notes to the Consolidated Interim Financial Statements

(13) Other disclosures:

(a) Information on significant transactions

Information regarding significant transactions that the Group should disclosed in accordance with "Regulations Governing the Preparation of Financial Reports by Securities Issuers" for the period from January 1, 2022 to September 30, 2022 was as follows:

1. Lending to other parties:

. Lending to other parties:	. Lending to other parties:	. Lending to other parties:	. Lending to other parties:	. Lending to other parties:	. Lending to other parties:	. Lending to other parties:	. Lending to other parties:	. Lending to other parties:	. Lending to other parties:	. Lending to other parties:	. Lending to other parties:	. Lending to other parties:
													(In Thousands ofNewTaiwan Dollars)
Numbe r (Note 1)	Name of lender	Name of borrower	Account Name	Relate d party	Maximum balance of financing during the period (Note 4)	Ending balance	Actual usage amount during the period	Range of interest rate P f during the period (%) (	urpose s of fund inancin g for the borrow er Note 2)	Transacti on amount for business Between two parties	Reasons for short-term financing	Allowan ce for bad debt	Collateral		Individual funding loan limits (Note 3)	Maximum limit of fund financing (Note 3)
													Item	Value
0 0 0	The Company The Company The Company	RJM RJM RGP	Receivabl e from related party Receivabl e from related party Receivabl e from related party	Yes Yes Yes	44,949 127,000 40,082	- 127,000 -	- 63,500 -	1.68 1.68 -	2 2 2	- - -	Repay bank loan Operation Operation and distribution of dividends	- - -	-	- - -	357,867 357,867 357,867	357,867 357,867 357,867

Note 1: The representation of numbers are as follows:

No.0 represents the Company.
No.1 and thereafter represent the subsidiary companies.

Note 2: The characteristic of financing is classified as follows:

No.1 represents the business relation.
No.2 represents the necessity of short-term financing.
Note 3: The total amount of funds lend to a company or firm with which the Company has business relations shall not exceed 40% of the Company's net worth. The amount of individual loans shall be limited to the higher of the amount of purchases or sales between the parties. For loans to companies or firms with necessities of short-term financing, the total amount of such loans shall not exceed 40% of the Company's net worth, and the amount of individual loans shall not exceed 40% of the Company's net worth. The net value is based on the most recent financial statements.

Note 4: The maximum balance of financing to other parties beginning from the reporting period to the month that the Company issued its financial statements.

Guarantees and endorsements for other parties: None
Information about securities held at the reporting date (excluding subsidiaries, associates and joint

ventures)

				(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)
Name of holder	Category and name of security	Relationship with company	Account	Ending balance				Note
				Shares (unit: thousands)	Carrying amount	Percentage of ownership (%)	Fair value
RIC RIC	SELF PICK INC. SELF TOKEN INC.	- -	Financial assets at fair value through other comprehensive income - non current Financial assets at fair value through other comprehensive income - non current	2,400 500	192 102	14.58 6.25	192 102

～47～

REGAL HOLDING CO., LTD. AND ITS SUBSIDIARIES Notes to the Consolidated Interim Financial Statements

Information regarding purchase or sale of same securities for the period exceeding $300 million or 20% of the Company's paid-in capital: None
Information on acquisition of real estate with purchase amount exceeding $300 million or 20% of the Company's paid-in capital: None
Information regarding receivables from disposal of real estate exceeding $300 million or 20% of the Company's paid-in capital: None
Information regarding related-parties purchases and/or sales exceeding $100 million or 20% of the Company's paid-in capital:

			(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)
Name of company	Counterpar ty	Relationship	Transaction details				Transactions in terms other than the regular terms		Notes and accounts receivable (payable)		Note
			Purchase/ sale	Amount	Percenta ge of total purchase s/sales (%)	Credit terms (days)	Unit price	Payment terms	Ending balance of notes and accounts receivable (payable)	Percentage of total notes and accounts receivable (payable)
RGP	RJM	RJM’s subsidiary	Sales	(156,062)	(65.95)	45~60days	Note 1	-	59,589	59.87	Note 2
RJM	RGP	RGP’s parent company	Purchases	156,062	33.47	45~60days	Note 1	-	(59,589)	(65.42)	Note 2

Note 1: The price was determined by mutual agreements.

Note 2: Related-party transactions have been eliminated in the preparation of the consolidated financial statements.

Information regarding receivables from related-parties exceeding $100 million or 20% of the Company's paid-in capital: None
Information regarding trading in derivative financial instruments: Please refer to Note 6(k).
Significant transactions and business relationship between the parent company and its subsidiaries:

～48～

REGAL HOLDING CO., LTD. AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements

==> picture [445 x 119] intentionally omitted <==

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

(In Thousands of New Taiwan Dollars)
Transactions
No. Name of Name of Relatio Percentage of the
(Note 1) company counterparty nship Account Amount Trading terms consolidated
(Note 2) revenue or total
assets
1 RGP RJM 1 Operating 156,062 The price is based on 12.19％
revenues mutually agreed prices.
1 RGP RJM 1 Trade receivables 59,589 45~60 days 4.03％
2 The Company RJM 2 Other receivables 63,567 The duration is one year, and 4.30％
the annual interest rate is
1.68%.
----- End of picture text -----

Note 1: The number is filled out as follows:

No.1 represents RGP. No.2 represents the Company.

Note 2: The type of relationship with the counterparty is indicated as follows: No.1 represents a subsidiary to the parent company. No.2 represents the parent company to a subsidiary.

Note 3: Disclosure is made for accounts that are balance sheet accounts and account for more than 1% of total consolidated assets and profit or loss accounts that account for more than 1% of total consolidated revenue.

(b) Related information on investee companies:

Information on investees for the period from January 1, 2022 to September 30, 2022 was as follows:

				(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)
Name of investor	Name of investee	Location	Main business and products	Original investment amount		Balance as of June 30, 2022			Net income (losses) of investee (Note 1)	Investment income or loss recognized in the period (Note 1)	Note
				June 30, 2022	December 31, 2021	Shares (thousand)	Percenta ge of ownershi p	Carrying amount (Note 1)
The Company The Company The Company The Company The Company RJM RJM RJM	RJM GVG Hong Kong RMS Chaporo RIC RGP Linden RPM	Thailand Hong Kong Thailand Seychelle s Taiwan Thailand Thailand Thailand	Designing, manufacturin g, and selling jewelry and gems Investment activities Investment activities Investment activities Selling jewelry and gems Plating jewelry and gems Selling jewelry and gems Metal recycling	300,000 38,971 23,182 154 45,000 11,647 3,680 56,620	300,000 38,971 18,920 154 45,000 11,647 2,774 -	4,549,998 9,400,000 4,495,500 3,500,000 4,500,000 127,500 392,000 999,000	99.99% 100.00% 99.90% - % 100.00% 51.00% 49.00% 99.90%	1,106,821 2 361 - 9,046 94,710 616 50,214	61,129 (1,275) (4,607) (23) (5,317) 17,089 (617) (451)	61,129 (1,275) (4,602) (23) (5,317) 8,493 (331) (450)	Eliminated in the consolidate financial statements `〞` `〞` `〞` `〞` `〞` `〞` `〞`

Note 1: Investment gains (losses) were based on the investee's financial statements audited by the Company's certified public accountants.

(c) Information on investments in China:

The names of investees in China, the main business, and other related information:

(In Thousands of Dollars)

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REGAL HOLDING CO., LTD. AND ITS SUBSIDIARIES Notes to the Consolidated Interim Financial Statements

Name of investee	Main business	Paid-in capital	Investme nt method (Note 1)	Accumulated investment amount remitted from Taiwan at the beginning of current period	Investment amount remitted or recovered	Investment amount remitted or recovered	Cumulative investment amount remitted from Taiwan at the end of current period	Profit of investee for the current period (Note 3)	Shareholding ratio by direct or indirect investments by the Company	Investment gains or losses recognized at current period (Note 2 and 3)	Book value of the investments at the end of current period (Note 2 and 3)	Accumulat ed investment income remitted until current period
					Remitta nce	Recover y
GVG Shen Zhen	Selling jewelry and gems	RMB 8,100	(2)	(Note 4)	(Note 4)	(Note 4)	(Note 4)	(1,451)	100.00%	(1,451)	-	-

Note 1: Investment methods are classified into the following three kinds:

(1) Invest in China directly.
(2) Invest in China through GVG Hong Kong.
(3) Other methods.
Note 2: The long-term investments at the end of period and the profit or loss of investment in current period have been eliminated in the preparation of the consolidated financial statements.

Note 3: The investment profit or loss and book amount disclosed by the Company are the amount of each of the projects directly or indirectly invested, and the investment income recognized by the Company was calculated according to the financial statements of the investee company that have been reviewed by the Company's certified public accountants.

Note 4: The Company is not a Taiwan registered company, so no investment amount is shown.

Limitation on investments in China: Not applicable.
Significant inter-company transactions with China investee: None
(d) Information about major shareholders:

Shareholding Shareholder’s name	Shares	Percentage
Solar Jewelers Group Corp. Bank SinoPac as Custodian for Arianna Investment Co., Ltd. Investment Account	13,760,000 2,549,559	35.83% 6.64%

Note: (1) The major shareholders information in the table above contains a listing of

shareholders with 5% or more ownership of the Company. The ownership information was calculated by Taiwan Depository & Clearing Corporation at the last trading date in each quarter using the number of common stocks (including treasury stocks) and preferred stocks issued in paperless form. There might be a difference between share capital on the financial report and the actual share that have completed non-physical delivered due to different basis of calculation.

(2) Shareholders who transferred their shares to trustees are disclosed by each settler of the trustee accounts. The ownership information disclosed by shareholders with ownership above 10% include their own shares and those shares that they transfer to trustees while retains the power to decide the allocation of trust property. Information on insider ownership declaration is available on the website of Market Observation Post System.

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Notes to the Consolidated Interim Financial Statements

REGAL HOLDING CO., LTD. AND ITS SUBSIDIARIES

(14) Segment information:

July 1, 2022 to September 30, 2022

Revenues: Revenues from external customers Inter-segment revenues Total revenues Profit or loss of reportable segment Revenues: Revenues from external customers Inter-segment revenues Total revenues Profit or loss of reportable segment	Manufacturing and selling jewelry and gems department	Adjustments and eliminations - (67,653)	Total 531,475 - 531,475 90,864 Total 610,246 - 610,246 75,532
	$ 490,974 108,154	(67,653)
	$ 70,015 20,849	-
	July 1, 2021 to September 30, 2021
	Manufacturing and selling jewelry and gems department	Adjustments and eliminations - (90,345)
	$ 579,624 120,967	(90,345)
	$ 63,078 12,454	-

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Notes to the Consolidated Interim Financial Statements

REGAL HOLDING CO., LTD. AND ITS SUBSIDIARIES

January 1, 2022 to September 30, 2022

Manufacturing and selling jewelry and gems department	Adjustments and eliminations - (156,062)	Total
		1,280,169 -
$ 1,199,581 236,650	(156,062)	1,280,169
$ 57,994 20,971	-	78,965
January 1, 2021 to September 30, 2021 Manufacturing and selling jewelry and gems department Electroplating department Adjustments and eliminations Total $ 1,454,800 61,934 - 1,516,734 - 196,514 (196,514) -
	Adjustments and eliminations - (196,514)
		1,516,734 -
$ 1,454,800 258,448	(196,514)	1,516,734
$ 121,103 19,505	-	140,608

The eliminating inter-segment revenues from total reportable segment revenues for the periods of July 1 to September 30, 2022, July 1 to September 30, 2021, January 1 to September 30, 2022 and January 1 to September 30, 2021 were $67,653 thousand, $90,345 thousand, $156,062 thousand and $196,514 thousand, respectively.

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AI assistant

RH — Interim / Quarterly Report 2022

52432_rns_2022-11-28_2125dad8-4d7b-4a61-a8ef-245955d56c8c.pdf

[(English Translation of Consolidated Interim Financial Statements and Report Originally Issued in Chinese)] REGAL HOLDING CO., LTD. AND ITS SUBSIDIARIES

Consolidated Interim Financial Statements

Table of Contents

Independent Auditors’ Review Report

Preface

Scope of Review

Conclusion

REGAL HOLDING CO., LTD. AND ITS SUBSIDIARIES

Consolidated Balance Sheets

September 30, 2022, December 31, 2021 and September 30, 2021

(Expressed in Thousands of New Taiwan Dollars)

(English Translation of Consolidated Interim Financial Statements and Report Originally Issued in Chinese)

REGAL HOLDING CO., LTD. AND ITS SUBSIDIARIES

Consolidated Statements of Comprehensive Income

For the three months and nine months ended at September 30, 2022 and 2021

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

REGAL HOLDING CO., LTD. AND ITS SUBSIDIARIES

Consolidated Statements of Changes in Equity

For the nine months ended at September 30, 2022 and 2021

Equity attributable to owners of the Company

REGAL HOLDING CO., LTD. AND ITS SUBSIDIARIES

Consolidated Statements of Cash Flows

For the nine months ended at September 30, 2022 and 2021

(Expressed in Thousands of New Taiwan Dollars)

REGAL HOLDING CO., LTD. AND ITS SUBSIDIARIES Notes to the Consolidated Interim Financial Statements

September 30, 2022 and 2021

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

(1) Company history

(2) Approval date and procedures of the consolidated interim financial statements:

(3) New standards, amendments and interpretations adopted:

(4) Summary of significant accounting policies:

(a) Statement of compliance

(b) Basis of consolidation

1. List of subsidiaries in the consolidated financial statements

(c) Employee benefits

(d) Income taxes

REGAL HOLDING CO., LTD. AND ITS SUBSIDIARIES Notes to the Consolidated Interim Financial Statements

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

(6) Explanation of significant accounts

(a) Cash and cash equivalents

(d) Other receivables

(e) Inventories

(f) Subsidiaries with material non-controlling interests

REGAL HOLDING CO., LTD. AND ITS SUBSIDIARIES

(g) Property, plant and equipment

(h) Right-of-use assets

(i) Intangible assets

(j) Short-term loans

(k) Corporate bonds payable

(l) Lease liabilities

REGAL HOLDING CO., LTD. AND ITS SUBSIDIARIES Notes to the Consolidated Interim Financial Statements

1. Leases about buildings

2. Other leases

(m) Employee benefits

1. Defined benefit plans

2. Defined contribution plans

(n) Income taxes

3. Situation of levy and approval of income tax

(o) Capital and other equity

1. Issuance of common stock

2. Capital surplus

3. Earnings distribution

4. Other equity, net of tax

REGAL HOLDING CO., LTD. AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements

5. Non-controlling interests, net of tax

(p) Share-based payments

(q) Earnings per share

REGAL HOLDING CO., LTD. AND ITS SUBSIDIARIES

Notes to the Consolidated Interim Financial Statements

REGAL HOLDING CO., LTD. AND ITS SUBSIDIARIES Notes to the Consolidated Interim Financial Statements

(s) Employees’ and directors’ compensation

(t) Non-operating income and expenses

1. Interest income

2. Other income

3. Other gains and losses

REGAL HOLDING CO., LTD. AND ITS SUBSIDIARIES Notes to the Consolidated Interim Financial Statements

RH Interim / Quarterly Report 2022