RT — Interim / Quarterly Report 2023

Dec 5, 2023

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS’ REVIEW REPORT

SEPTEMBER 30, 2023 AND 2022 (Stock code: 2379)

~1~

INDEPENDENT AUDITORS’ REVIEW REPORT TRANSLATED FROM CHINESE

PWCR23000128

To the Board of Directors and Shareholders of Realtek Semiconductor Corporation

Introduction

We have reviewed the accompanying consolidated balance sheets of Realtek Semiconductor Corporation and subsidiaries as at September 30, 2023 and 2022, and the related consolidated statements of comprehensive income for the three-month and nine-month periods then ended, as well as the consolidated statements of changes in equity and of cash flows for the nine-month periods then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies. Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” and International Accounting Standard 34, “Interim Financial Reporting” that came into effect as endorsed by the Financial Supervisory Commission. Our responsibility is to express a conclusion on these consolidated financial statements based on our reviews.

Scope of review

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

Basis for qualified conclusion

As explained in Notes 4(3) and 6(7), the consolidated financial statements of certain insignificant consolidated subsidiaries, investments accounted for under equity method and the information disclosed in Note 13 were based solely on the reports prepared by those subsidiaries and investee companies, which were not reviewed by independent auditors. Total assets of these subsidiaries amounted to NT$7,061,316 thousand and NT$7,000,513 thousand, constituting 6.15% and 5.21% of the consolidated total assets as at September 30, 2023 and 2022, respectively, total liabilities amounted to NT$1,390,761

~2~

thousand and NT$1,576,349 thousand, constituting 1.92% and 1.80% of the consolidated total liabilities as at September 30, 2023 and 2022, respectively, and the total comprehensive income (loss) amounted to NT$160,100 thousand, NT$9,143 thousand, NT($40,135) thousand and NT($449,291) thousand, constituting 3.51%, 0.11%,(0.42%) and (2.19%) of the consolidated total comprehensive income for the three-month and nine-month periods then ended, respectively. Furthermore, the investments accounted for under equity method as at September 30, 2023 and 2022 amounted to NT$136,403 thousand and NT$176,891 thousand, respectively, and the related investment loss were NT$14,942 thousand, NT$3,222 thousand, NT$42,580 thousand and NT$14,503 thousand for the three-month and nine-month periods then ended, respectively.

Qualified conclusion

Except for the adjustments to the consolidated financial statements, if any, as might have been determined to be necessary had the financial statements of certain insignificant consolidated subsidiaries and investments accounted for under equity method been reviewed by independent auditors as described in the Basis for qualified conclusion section above, based on our reviews, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of Realtek Semiconductor Corporation and subsidiaries as at September 30, 2023 and 2022, and of its consolidated financial performance for the three-month and nine-month periods then ended and its consolidated cash flows for the nine-month periods then ended in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” and International Accounting Standard 34, “Interim Financial Reporting” that came into effect as endorsed by the Financial Supervisory Commission.

Li, Tien-Yi Cheng, Ya-Huei For and on behalf PricewaterhouseCoopers, Taiwan October 20, 2023

------------------------------------------------------------------------------------------------------------------------------The accompanying consolidated financial statements are not intended to present the financial position and results of operations and cash flows in accordance with accounting principles generally accepted in countries and jurisdictions other than the Republic of China. The standards, procedures and practices in the Republic of China governing the audit of such financial statements may differ from those generally accepted in countries and jurisdictions other than the Republic of China. Accordingly, the accompanying consolidated financial statements and independent auditors’ review report are not intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic of China, and their applications in practice.

As the financial statements are the responsibility of the management, PricewaterhouseCoopers cannot accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.

~3~

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS SEPTEMBER 30, 2023, DECEMBER 31, 2022 AND SEPTEMBER 30, 2022

(Expressed in thousands of New Taiwan dollars)

Assets	Notes	September 30, 2023 AMOUNT % $ 18,979,165 17 604,693 1 38,172,964 33 14,017,344 12 2,540,385 2 1,592,543 1 14,783,572 13 455,614 - 91,146,280 79 53,000 - 3,103,395 3 5,175,237 5 136,403 - 8,271,086 7 1,802,925 2 35,535 - 2,523,392 2 326,822 - 2,245,503 2 23,673,298 21 $ 114,819,578 100 (Continued)	December 31, 2022 AMOUNT % $ 13,754,035 12 1,563,287 1 41,595,837 37 9,418,440 8 2,594,245 2 488,769 - 25,552,543 23 524,525 1 95,491,681 84 358,145 - 3,099,759 3 618,481 1 170,671 - 7,556,636 7 1,537,328 1 38,416 - 2,413,195 2 132,978 - 2,283,237 2 18,208,846 16 $ 113,700,527 100	September 30, 2022	September 30, 2022
			AMOUNT $ 13,754,035 1,563,287 41,595,837 9,418,440 2,594,245 488,769 25,552,543 524,525 95,491,681 358,145 3,099,759 618,481 170,671 7,556,636 1,537,328 38,416 2,413,195 132,978 2,283,237 18,208,846 $ 113,700,527	AMOUNT $ 8,325,957 1,624,804 62,888,582 13,843,576 3,853,234 659,951 24,936,306 617,951 116,750,361 305,619 3,069,781 85,740 176,891 7,303,646 1,578,832 39,952 2,506,551 310,925 2,307,295 17,685,232 $ 134,435,593	%
Current assets 1100 Cash and cash equivalents 1110 Financial assets at fair value through profit or loss - current 1136 Financial assets at amortised cost - current 1170 Accounts receivable, net 1180 Accounts receivable, net - related parties 1200 Other receivables 130X Inventories, net 1410 Prepayments 11XX Total current assets Non-current assets 1510 Financial assets at fair value through profit or loss - non- current 1517 Financial assets at fair value through other comprehensive income - non-current 1535 Financial assets at amortised cost - non-current 1550 Investments accounted for under equity method 1600 Property, plant and equipment 1755 Right-of-use assets 1760 Investment property 1780 Intangible assets 1840 Deferred income tax assets 1900 Other non-current assets 15XX Total non-current assets 1XXX Total assets	6(1) 6(2) 6(4) 6(5) 6(5) and 7 6(6) 6(2) 6(3) 6(4) and 8 6(7) 6(8) 6(9) 6(10) 6(11) 9				6 1 47 10 3 1 19 -
					87
					- 2 - - 6 1 - 2 - 2
					13
					100

~4~

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS SEPTEMBER 30, 2023, DECEMBER 31, 2022 AND SEPTEMBER 30, 2022

(Expressed in thousands of New Taiwan dollars)

Liabilities and Equity	Notes	September 30, 2023 AMOUNT % $ 6,386,080 6 233,066 - - - 8,952,561 8 460,775 - 40,645,317 35 100,576 - 1,657,476 1 135,316 - 8,565,334 8 67,136,501 58 2,011,134 2 1,432,605 1 215,642 - 1,445,804 2 99,214 - 5,204,399 5 72,340,900 63 5,128,636 4 541,832 - 8,882,764 8 - - 22,664,804 20 5,250,939 5 42,468,975 37 9,703 - 42,478,678 37 $ 114,819,578 100	December 31, 2022 AMOUNT % $ 13,737,994 12 117,752 - - - 10,340,079 9 156,296 - 27,684,495 25 90,401 - 1,379,985 1 78,446 - 8,959,279 8 62,544,727 55 1,713,316 2 1,287,710 1 62,725 - 1,223,185 1 105,914 - 4,392,850 4 66,937,577 59 5,128,636 5 1,045,147 1 7,262,359 6 1,776,089 2 28,854,826 25 2,686,175 2 46,753,232 41 9,718 - 46,762,950 41 $ 113,700,527 100	September 30, 2022	September 30, 2022
		AMOUNT $ 6,386,080 233,066 - 8,952,561 460,775 40,645,317 100,576 1,657,476 135,316 8,565,334 67,136,501 2,011,134 1,432,605 215,642 1,445,804 99,214 5,204,399 72,340,900 5,128,636 541,832 8,882,764 - 22,664,804 5,250,939 42,468,975 9,703 42,478,678 $ 114,819,578	AMOUNT $ 13,737,994 117,752 - 10,340,079 156,296 27,684,495 90,401 1,379,985 78,446 8,959,279 62,544,727 1,713,316 1,287,710 62,725 1,223,185 105,914 4,392,850 66,937,577 5,128,636 1,045,147 7,262,359 1,776,089 28,854,826 2,686,175 46,753,232 9,718 46,762,950 $ 113,700,527	AMOUNT $ 9,927,317 181,020 3,276 16,120,928 291,233 45,895,179 139,948 1,295,717 88,570 9,390,442 83,333,630 1,537,407 1,293,019 241,260 1,246,453 146,413 4,464,552 87,798,182 5,128,636 1,044,903 7,262,359 1,776,089 26,721,175 4,694,575 46,627,737 9,674 46,637,411 $ 134,435,593	%
Current liabilities 2100 Short-term borrowings 2130 Contract liabilities - current 2150 Notes payable 2170 Accounts payable 2180 Accounts payable - related parties 2200 Other payables 2220 Other payables - related parties 2230 Current income tax liabilities 2280 Lease liabilities - current 2300 Other current liabilities 21XX Total current liabilities Non-current liabilities 2540 Long-term borrowings 2550 Provisions - non-current 2570 Deferred income tax liabilities 2580 Lease liabilities - non-current 2600 Other non-current liabilities 25XX Total non-current liabilities 2XXX Total liabilities Equity Share capital 3110 Common shares Capital surplus 3200 Capital surplus Retained earnings 3310 Legal reserve 3320 Special reserve 3350 Undistributed earnings Other equity 3400 Other equity interest 31XX Equity attributable to holders of the parent company 36XX Non-controlling interest 3XXX Total equity Significant contingent liabilities and unrecognized contract commitments 3X2X Total liabilities and equity	6(12) 6(21) 7 6(13) 7 6(21) 6(14) 6(16) 6(17) 6(18) 6(19) 6(20) 9				8 - - 12 - 34 - 1 - 7
					62
					1 1 - 1 -
					3
					65
					4 1 5 1 20 4
					35
					-
					35
					100

The accompanying notes are an integral part of these consolidated financial statements.

~5~

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE-MONTH AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2023 AND 2022

(Expressed in thousands of New Taiwan dollars, except for earnings per share amount)

				Three-month periods ended September	Three-month periods ended September	Three-month periods ended September	30	Nine-month periods ended September 30	Nine-month periods ended September 30	Nine-month periods ended September 30	Nine-month periods ended September 30
				2023		2022		2023		2022
	Items	Notes		AMOUNT	%	AMOUNT	%	AMOUNT	%	AMOUNT	%
4000	Operating revenue	6(21) and 7	$	26,678,445	100	$ 29,772,018	100 $ 72,594,151		100	$ 90,027,673	100
5000	Operating costs	6(6) and 7	(	15,468,799)(	58)(	15,468,231)(	52)(	41,950,971)(	58)(	44,892,807)(	50)
5950	Gross profit			11,209,646	42	14,303,787	48	30,643,180	42	45,134,866	50
	Operating expenses	6(26)(27) and 7
6100	Selling expenses		(	1,073,473 )(	4)(	1,293,284)(	4 )(	2,889,626)(	4)(	3,848,815 )(	4)
6200	General and administrative expenses		(	946,042 )(	4)(	1,029,026)(	3 )(	2,544,012)(	3)(	3,129,899 )(	4)
6300	Research and development expenses		(	7,197,978 )(	27)(	7,947,938)(	27 )(	19,667,123)(	27)(	24,192,651 )(	27)
6450	Expected credit gains (losses)	12(2)	(	2,368)	-	2,397	-(	44,036)	- (	9,789)	-
6000	Total operating expenses		(	9,219,861)(	35)(	10,267,851)(	34)(	25,144,797)(	34)(	31,181,154)(	35)
6900	Operating income			1,989,785	7	4,035,936	14	5,498,383	8	13,953,712	15
	Non-operating income and expenses
7100	Interest income	6(22)		677,997	3	361,657	1	1,880,521	2	689,725	1
7010	Other income	6(23)		60,097	-	109,395	-	80,443	-	217,085	-
7020	Other gains and losses	6(24)		5,546	- (	29,994)	-	19,755	- (	41,975 )	-
7050	Finance costs	6(25)	(	48,800 )	- (	83,378)	- (	176,902)	- (	136,344 )	-
7060	Share of loss of associates and joint ventures accounted	6(7)
	for under equity method		(	14,942)	- (	3,222)	-(	42,580)	- (	14,503)	-
7000	Total non-operating income and expenses			679,898	3	354,458	1	1,761,237	2	713,988	1
7900	Profit before income tax, net			2,669,683	10	4,390,394	15	7,259,620	10	14,667,700	16
7950	Income tax expense	6(28)	(	97,739)	- (	183,357)(	1)(	287,249)	- (	597,251)	-
8200	Net income for the period		$	2,571,944	10	$ 4,207,037	14$ 6,972,371		10	$ 14,070,449	16

(Continued)

~6~

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE-MONTH AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2023 AND 2022

(Expressed in thousands of New Taiwan dollars, except for earnings per share amount)

Items	Notes	Three-month periods	Three-month periods	ended September 30 Nine-month periods September 30 2022 2023 2022 AMOUNT % AMOUNT % AMOUNT % $ 8,148 - ($ 175,751)( 1)($ 931,817 )( 1) 3,803,265 13 2,756,960 4 7,402,482 8 $ 3,811,413 13$ 2,581,209 3 $ 6,470,665 7 $ 8,018,450 27$ 9,553,580 13 $ 20,541,114 23 $ 4,207,022 14 $ 6,972,304 10 $ 14,070,401 16 15 - 67 - 48 - $ 4,207,037 14$ 6,972,371 10 $ 14,070,449 16 $ 8,018,435 27 $ 9,553,513 13 $ 20,541,066 23 15 - 67 - 48 - $ 8,018,450 27$ 9,553,580 13 $ 20,541,114 23 $ 8.20$ 13.59 $ 27.47 $ 8.13$ 13.40 $ 26.52
		2023	% - 7 7 17 10 - 10 17 - 17 5.01 5.00	2022
				AMOUNT $ 8,148 3,803,265 $ 3,811,413 $ 8,018,450 $ 4,207,022 15 $ 4,207,037 $ 8,018,435 15 $ 8,018,450 $
Other comprehensive income (losses), net Components of other comprehensive income (losses) that will not be reclassified to profit or loss 8316 Unrealised losses from investments in equity instruments measured at fair value through other comprehensive income Components of other comprehensive income (losses) that will be reclassified to profit or loss 8361 Financial statements translation differences of foreign operations 8300 Other comprehensive income, net 8500 Total comprehensive income for the period Net income attributable to: 8610 Equity holders of the parent company 8620 Non-controlling interest Net income for the period Comprehensive income attributable to: 8710 Equity holders of the parent company 8720 Non-controlling interest Total comprehensive income for the period Earnings per share (in dollars) 9750 Basic earnings per share 9850 Diluted earnings per share
		$		$

The accompanying notes are an integral part of these consolidated financial statements.

~7~

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2023 AND 2022

(Expressed in thousands of New Taiwan dollars)

Equity attributable to owners of the parent company

Nine-month period ended September 30, 2022 Balance at January 1, 2022 Net income for the period Other comprehensive income (loss) for the period Total comprehensive income (loss) for the period Distribution of 2021 earnings Legal reserve Special reserve Cash dividends Employees’ compensation transferred to common shares Cash from capital surplus Changes in non-controlling interest Balance at September 30, 2022 Nine-month period ended September 30, 2023 Balance at January 1, 2023 Net income for the period Other comprehensive income (loss) for the period Total comprehensive income (loss) for the period Distribution of 2022 earnings Legal reserve Special reserve Cash dividends Cash from capital surplus Change in equity of associates accounted for under equity method Disposal of financial assets at fair value through other comprehensive income or losses Changes in non-controlling interest Balance at September 30, 2023	Notes		Common shares		Capital surplus				Retained earnings			Other equityinterest	Other equityinterest	Other equityinterest		Total		Non-controlling interest		Total equity
							Legal reserve		Special reserve		Undistributed earnings	Financial statements translation differences of foreign operations	a f	Unrealised income(losses) from financial ssets measured at air value through other comprehensive income
	6(20) 6(19) 6(19) 6(19) 6(18)(19) 6(19) 6(20) 6(19) 6(19) 6(19) 6(19) 6(18) 6(20)		$ 5,106,849 - - - - - - 21,787 - - $ 5,128,636 $ 5,128,636 - - - - - - - - - - $ 5,128,636	$ 1,101,079 - - - - - - 969,551 ( 1,025,727 ) - $ 1,044,903 $ 1,045,147 - - - - - - ( 512,864 ) 9,549 - - $ 541,832			$ 5,577,083 - - - 1,685,276 - - - - - $ 7,262,359 $ 7,262,359 - - - 1,620,405 - - - - - - $ 8,882,764	$ 1,556,049 - - - - 220,040 - - - - $ 1,776,089 $ 1,776,089 - - - - ( 1,776,089 ) - - - - - $ -		$ 27,377,681 14,070,401 - 14,070,401 ( 1,685,276 ) ( 220,040 ) ( 12,821,591 ) - - - $ 26,721,175 $ 28,854,826 6,972,304 - 6,972,304 ( 1,620,405 ) 1,776,089 ( 13,334,455 ) - - 16,445 - $ 22,664,804		($ 4,156,871 ) - 7,402,482 7,402,482 - - - - - - $ 3,245,611 $ 1,294,358 - 2,756,960 2,756,960 - - - - - - - $ 4,051,318	$ 2,380,781 - ( 931,817 ) ( 931,817 ) - - - - - - $ 1,448,964 $ 1,391,817 - ( 175,751 ) ( 175,751 ) - - - - - ( 16,445 ) - $ 1,199,621		$ 38,942,651 14,070,401 6,470,665 20,541,066 - - ( 12,821,591 ) 991,338 ( 1,025,727 ) - $ 46,627,737 $ 46,753,232 6,972,304 2,581,209 9,553,513 - - ( 13,334,455 ) ( 512,864 ) 9,549 - - $ 42,468,975		$ 9,673 48 - 48 - - - - - ( 47 ) $ 9,674 $ 9,718 67 - 67 - - - - - - ( 82 ) $ 9,703		$ 38,952,324 14,070,449 6,470,665 20,541,114 - - ( 12,821,591 ) 991,338 ( 1,025,727 ) ( 47 ) $ 46,637,411 $ 46,762,950 6,972,371 2,581,209 9,553,580 - - ( 13,334,455 ) ( 512,864 ) 9,549 - ( 82 ) $ 42,478,678

The accompanying notes are an integral part of these consolidated financial statements.

~8~

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2023 AND 2022

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax Adjustments Adjustments to reconcile profit (loss) Depreciation Amortization Expected credit losses Interest expense Interest income Dividend income Losses on financial assets at fair value through profit or loss Share of loss of associates and joint ventures accounted for under equity method (Gains) losses on disposal of property, plant and equipment Gains on disposal of investments Gains arising from lease modifications Changes in operating assets and liabilities Changes in operating assets Financial assets at fair value through profit or loss - current Accounts receivable, net Accounts receivable, net - related parties Other receivables Inventories Prepayments Changes in operating liabilities Contract liabilities - current Accounts payable Accounts payable - related parties Other payables Other payables - related parties Other current liabilities Provisions - non-current Accrued pension obligations	Nine-month periods ended September 30 Notes 2023 2022 $ 7,259,620 $ 14,667,700 6(26) 957,055 854,174 6(11)(26) 1,293,611 1,200,449 12(2) 44,036 9,789 6(25) 176,902 136,344 6(22) ( 1,880,521 ) ( 689,725 ) 6(23) ( 33,337 ) ( 60,741 ) 6(2)(24) 6,984 206,442 6(7) 42,580 14,503 6(24) ( 5,276 ) 2,079 6(24) ( 6,220 ) - 6(24) - ( 24 ) 947,313 133,026 ( 4,638,941 ) ( 1,054,348 ) 49,861 ( 663,246 ) ( 82,738 ) ( 128,525 ) 10,768,971 ( 8,387,594 ) 68,911 41,932 115,314 ( 30,080 ) ( 1,387,518 ) 5,015,360 304,479 ( 43,180 ) ( 1,386,701 ) 7,833,607 10,175 38,695 ( 393,945 ) 1,851,025 92,864 146,666 ( 5,288 ) 33,665	Nine-month periods ended September 30

(Continued)

~9~

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2023 AND 2022

(Expressed in thousands of New Taiwan dollars)

Cash inflow generated from operations Interest received Dividends received Interest paid Income tax paid Net cash flows from operating activities CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from disposal of financial assets at fair value through profit or loss Acquisition of financial assets at fair value through profit or loss - non-current Acquisition of financial assets at fair value through other comprehensive income Proceeds from capital reduction of financial assets at fair value through other comprehensive income Acquisition of financial assets at amortised cost Proceeds from disposal of financial assets at amortised cost Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Acquisition of intangible assets Decrease (increase) in refundable deposits Increase in other non-current assets Net cash flows used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Increase in short-term borrowings Decrease in short-term borrowings Increase in long-term borrowings Repayment of principal portion of lease liabilities Decrease in guarantee deposits Net cash flows used in financing activities Effect of exchange rate Net increase in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period	Nine-month periods ended September 30 Notes 2023 2022 $ 12,318,191 $ 21,127,993 859,485 315,227 33,337 60,741 ( 176,016 ) ( 137,146 ) ( 39,831 ) ( 765,398 ) 12,995,166 20,601,417 309,442 - - ( 317,244 ) ( 30,677 ) ( 112,875 ) 18,041 - ( 20,650,557 ) ( 72,855,015 ) 21,608,902 60,525,410 6(30) ( 1,449,143 ) ( 1,549,513 ) 15,402 347 6(30) ( 1,041,700 ) ( 1,099,864 ) 411 ( 1,459,438 ) ( 17,421 ) ( 113,206 ) ( 1,237,300 ) ( 16,981,398 ) 6(31) 99,509,695 114,359,342 6(31) ( 106,861,609 ) ( 117,774,125 ) 6(31) 296,420 537,050 6(31) ( 85,341 ) ( 72,155 ) ( 14 ) ( 184 ) ( 7,140,849 ) ( 2,950,072 ) 608,113 458,659 5,225,130 1,128,606 13,754,035 7,197,351 $ 18,979,165 $ 8,325,957	Nine-month periods ended September 30

The accompanying notes are an integral part of these consolidated financial statements.

~10~

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2023 AND 2022 (Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

1. HISTORY AND ORGANISATION

Realtek Semiconductor Corporation (the “Company”) was incorporated as a company limited by shares on October 21, 1987 and commenced commercial operations in March 1988. The Company was based in Hsinchu Science Park since October 28, 1989. The Company and its subsidiaries (collectively referred herein as the “Group”) are engaged in the research, development, design, testing, and sales of ICs and application software for these products.

1. THE DATE OF AUTHORISATION FOR ISSUANCE OF THE CONSOLIDATED FINANCIAL STATEMENTS AND PROCEDURES FOR AUTHORISATION

These consolidated financial statements were authorized for issuance by the Board of Directors on October 20, 2023.

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

• (1) Effect of the adoption of new issuances of or amendments to International Financial Reporting Standards (“IFRSs”) that came into effect as endorsed by the Financial Supervisory Commission

(“FSC”)

New standards, interpretations and amendments that came into effect as endorsed by FSC and became effective from 2023 are as follows:

effective from 2023 are as follows:
New Standards,Interpretations and Amendments	Effective date by International Accounting Standards Board
Amendments to IAS 1, ‘Disclosure of accounting policies’ Amendments to IAS 8, ‘Definition of accounting estimates’ Amendments to IAS 12, ‘Deferred tax related to assets and liabilities arising from a single transaction’ Amendments to IAS 12, ‘International tax reform - pillar two model rules’	January 1, 2023 January 1, 2023 January 1, 2023 May 23, 2023

Except for the following, the above standards and interpretations have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment. Amendments to IAS 12, ‘International tax reform - pillar two model rules’

The amendments give companies temporary relief from accounting for deferred income taxes arising from tax law enacted or substantively enacted to implement the Pillar Two model rules published by the Organisation for Economic Co-operation and Development (OECD). An entity shall neither recognise nor disclose information about deferred tax assets and liabilities related to Pillar Two income taxes.

~11~

(2) Effect of new issuances of or amendments to IFRSs that came into effect as endorsed by the FSC

but not yet adopted by the Group

New standards, interpretations and amendments endorsed by the FSC and will become effective from 2024 are as follows:

	Effective date by
	International Accounting
New Standards,Interpretations andAmendments	Standards Board
Amendments to IFRS 16, ‘Lease liability in a sale and leaseback’	January 1, 2024
Amendments to IAS 1, ‘Classification of liabilities as current or non-	January 1, 2024
current’
Amendments to IAS 1, ‘Non-current liabilities with covenants’	January 1, 2024
Amendments to IAS 7 and IFRS 7, ‘Supplier finance arrangements’’	January 1, 2024

The above standards, interpretations and amendments have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment.

(3) IFRSs issued by IASB but not yet endorsed by the FSC

New standards, interpretations and amendments issued by IASB but not yet included in the IFRSs as endorsed by the FSC are as follows:

==> picture [483 x 47] intentionally omitted <==

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

Effective date by
International Accounting
New Standards, Interpretations and Amendments Standards Board
----- End of picture text -----

IFRSs as endorsed by the FSC are as follows: New Standards,Interpretations andAmendments	Effective date by International Accounting Standards Board
Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets	To be determined by
between an investor and its associate or joint venture’	International Accounting
	Standards Board
IFRS 17, ‘Insurance contracts’	January 1, 2023
Amendments to IFRS 17, ‘Insurance contracts’	January 1, 2023
Amendment to IFRS 17, ‘Initial application of IFRS 17 and IFRS 9 –	January 1, 2023
comparative information’
Amendments to IAS 21, ‘Lack of exchangeability’	January 1, 2025

The above standards, interpretations and amendments have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment.

4. SUMMARY OF MATERIAL ACCOUNTING POLICIES

The principal accounting policies adopted are consistent with Note 4 in the consolidated financial statements for the year ended December 31, 2022, except for the compliance statement, basis of preparations, basis of consolidation and interim financial statements applied as set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

~12~

(1) Compliance statement

• A. The consolidated financial statements of the Group have been prepared in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” and the International Accounting Standard 34, ‘Interim financial reporting’ that came into effect as endorsed by the FSC.

• B. These consolidated financial statements are to be read in conjunction with the consolidated financial statements for the year ended December 31, 2022.

• (2) Basis of preparation

• A. Except for the following items, the consolidated financial statements have been prepared under the historical cost convention:

  • (a) Financial assets (including derivative instruments) at fair value through profit or loss.

  • (b) Financial assets at fair value through other comprehensive income.

  • (c) Defined benefit liabilities recognized based on the net amount of pension fund assets less present value of defined benefit obligation.

• B. The preparation of financial statements in conformity with International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations that came into effect as endorsed by the FSC (collectively referred herein as the “IFRSs”) requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 5.

(3) Basis of consolidation

• A. Basis for preparation of consolidated financial statements:

• Basis for preparation of consolidated financial statements is consistent with the 2022 consolidated financial statements.

• B. Subsidiaries included in the consolidated financial statements:

Name of investor	Name of subsidiary	Main business activities	September 30,2023 December 31,2022 September 30,2022 - - 100% 100% 100% 100% Ownership (%)	September 30,2023 December 31,2022 September 30,2022 - - 100% 100% 100% 100% Ownership (%)	September 30,2023 December 31,2022 September 30,2022 - - 100% 100% 100% 100% Ownership (%)	Description
Realtek Semiconductor Corporation Realtek Semiconductor Corporation	Leading Enterprises Limited Amber Universal Inc.	Investment holdings 〃	- 100%	- 100%	100% 100%	Note 1

~13~

==> picture [509 x 47] intentionally omitted <==

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

Ownership (%)
Name of Name of Main business September December September
investor subsidiary activities 30, 2023 31, 2022 30, 2022 Description
----- End of picture text -----

Name of investor	Name of subsidiary	Main business activities	September 30, 2023	December 31, 2022	September 30, 2022	Description
Realtek	Realtek	ICs	100%	100%	100%
Semiconductor	Singapore Private	manufacturing,
Corporation	Limited	design, research,
		development,
		sales, and
		marketing
Realtek	Bluocean Inc.	Investment	-	-	100%	Note 1
Semiconductor		holdings
Corporation
Realtek	Talent Eagle	〃	-	-	100%	Note 1
Semiconductor	Enterprise Inc.
Corporation
Realtek	Realtek	〃	100%	100%	100%
Semiconductor	Investment
Corporation	Singapore
	Private Limited
Realtek	Wise Elite	〃	100%	-	-	Notes 2
Semiconductor	Global Limited					and 4
Corporation
Realtek	Realsun	〃	100%	100%	100%	Note 3
Semiconductor	Investment Co.,
Corporation	Ltd.
Realtek	Hung-wei	〃	100%	100%	100%	Note 3
Semiconductor	Venture Capital
Corporation	Co., Ltd.
Realtek	Realking	〃	100%	100%	100%	Note 3
Semiconductor	Investments
Corporation	Co., Ltd.
Realtek	Realsun	ICs	100%	100%	100%	Note 3
Semiconductor	Technology	manufacturing,
Corporation	Corporation	design, research,
		development,
		sales, and
		marketing

~14~

==> picture [509 x 47] intentionally omitted <==

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

Ownership (%)
Name of Name of Main business September December September
investor subsidiary activities 30, 2023 31, 2022 30, 2022 Description
----- End of picture text -----

Name of investor	Name of subsidiary	Main business activities	September 30, 2023	December 31, 2022	September 30, 2022	Description
Realtek	Bobitag Inc.	Manufacture and	67%	67%	67%	Note 3
Semiconductor		installation of
Corporation		computer
		equipment and
		wholesale, retail
		and related
		service of
		electronic
		materials and
		information /
		software
Realtek	AICONNX	ICs	100%	100%	100%	Note 3
Semiconductor	Technology	manufacturing,
Corporation	Corporation	design, research,
		development,
		sales, and
		marketing
Leading	Realtek	Information	100%	100%	100%	Note 3
Enterprises	Semiconductor	collection and
Limited	(Japan) Corp.	technical support
Leading	Circon Universal	Investment	-	100%	100%	Note 3
Enterprises	Inc.	holdings
Limited
Amber Universal	Realtek	Information	100%	100%	100%	Note 3
Inc.	Semiconductor	services and
	(Hong Kong)	technical support
	Limited
Amber Universal	Realtek	R&D and	100%	100%	100%	Note 3
Inc.	Semiconductor	technical support
	(Shen Zhen)
	Corp.
Empsonic	Realsil	〃	100%	100%	100%	Note 3
Enterprises Inc.	Microelectronics
	(Suzhou)
	Co.,LTD
Talent Eagle	Ubilinx	〃	100%	100%	100%	Note 3
Enterprise Inc.	Technology Inc.

~15~

==> picture [509 x 47] intentionally omitted <==

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

Ownership (%)
Name of Name of Main business September December September
investor subsidiary activities 30, 2023 31, 2022 30, 2022 Description
----- End of picture text -----

Name of investor	Name of subsidiary	Main business activities	September 30, 2023	December 31, 2022	September 30, 2022	Description
Realtek	Cortina Access	〃	100%	100%	100%	Note 3
Singapore	Inc.
Private Limited
Realtek	Cortina Systems	R&D and	100%	100%	100%	Note 3
Singapore	Taiwan Limited	technical support
Private Limited
Realtek	Cortina Network	〃	100%	100%	100%	Note 3
Singapore	Systems
Private Limited	Shanghai Co.,
	Ltd.
Realtek	Empsonic	Investment	100%	100%	100%	Note 3
Singapore	Enterprises Inc.	holdings
Private Limited
Realtek	Realtek	R&D and	100%	100%	100%	Note 3
Singapore	Viet Nam	technical support
Private Limited	Co., Ltd.
Realtek	RayMX	ICs	19%	19%	19%	Note 3
Singapore	Microelectronics	manufacturing,
Private Limited	Corp.	design, research,
		development,
		sales, and
		marketing
Realtek	Leading	Investment	100%	100%	-	Note 1
Singapore	Enterprises	holdings
Private Limited	Limited
Realtek	Bluocean Inc.	〃	100%	100%	-	Note 1
Singapore
Private Limited
Realtek	Talent Eagle	〃	100%	100%	-	Note 1
Singapore	Enterprise Inc.
Private Limited
Realsil	RayMX	ICs	81%	81%	81%	Note 3
Microelectronics	Microelectronics	manufacturing,
(Suzhou)	Corp.	design, research,
Co.,LTD		development,
		sales, and
		marketing

~16~

==> picture [509 x 47] intentionally omitted <==

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

Ownership (%)
Name of Name of Main business September December September
investor subsidiary activities 30, 2023 31, 2022 30, 2022 Description
----- End of picture text -----

Name of investor	Name of subsidiary	Main business activities	September 30, 2023	December 31, 2022	September 30, 2022	Description
Realsil	Suzhou PanKore	ICs	80%	80%	80%	Note 3
Microelectronics	Integrated	manufacturing,
(Suzhou)	Circuit	design, research,
Co.,LTD	Technology Co.	development,
	Ltd.	sales, and
		marketing
Realtek	Suzhou PanKore	〃	20%	20%	20%	Note 3
Semiconductor	Integrated
(Shen Zhen)	Circuit
Corp.	Technology Co.
	Ltd.
Bluocean Inc.	Realtek	R&D and	100%	100%	100%	Note 3
	Semiconductor	technical support
	(Malaysia) Sdn.
	Bhd.
Bluocean Inc.	Realtek Korea	〃	100%	100%	100%	Note 3
	Inc.

• Note 1: Due to organisation restructuring, in the fourth quarter of 2022, the Company sold all equity interests in its three wholly-owned subsidiaries, Leading Enterprises Limited, Bluocean Inc. and Talent Eagle Enterpriese Inc., to Realtek Singapore Private Limited through share exchanges.

• Note 2: Wise Elite Global Limited was established on February 17, 2023.

• Note 3: The financial statements of the entity as at and for the nine-month periods ended September 30, 2023 and 2022 were not reviewed by the independent auditors as the entity did not meet the definition of a significant subsidiary.

• Note 4: The financial statements of the entity as at and for the nine-month periods ended September 30, 2023 were not reviewed by the independent auditors as the entity did not meet the definition of a significant subsidiary.

• C. Subsidiaries not included in the consolidated financial statements: None.

• D. Adjustments for subsidiaries with different balance sheet dates: None.

• E. Significant restrictions: None.

• F. Subsidiaries that have non-controlling interests that are material to the Group: None.

~17~

(4) Employee benefits

Pensions - Defined benefit plan

Pension cost for the interim period is calculated on a year-to-date basis by using the pension cost rate derived from the actuarial valuation at the end of the prior financial year, adjusted for significant market fluctuations since that time and for significant curtailments, settlements, or other significant one-off events. And, the related information is disclosed accordingly.

(5) Income tax

• A. The interim period income tax expense is recognized based on the estimated average annual effective income tax rate expected for the full financial year applied to the pretax income of the interim period, and the related information is disclosed accordingly.

• B. If a change in tax rate is enacted or substantively enacted in an interim period, the Group recognizes the effect of the change immediately in the interim period in which the change occurs. The effect of the change on items recognized outside profit or loss is recognized in other comprehensive income or equity while the effect of the change on items recognized in profit or loss is recognized in profit or loss.

5. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF

ASSUMPTION UNCERTAINTY

There have been no significant changes as at September 30, 2023. Please refer to Note 5 in the consolidated financial statements for the year ended December 31, 2022.

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

Cash and cash equivalents
Cash on hand and revolving funds Checking accounts and demand deposits Time deposits Cash equivalents - notes issued under repurchase agreement	September 30, 2023 838 $ 8,562,146 5,816,181 4,600,000 18,979,165 $	December31,2022 837 $ 10,001,264 3,751,934 - 13,754,035 $	September 30, 2022
			953 $ 6,913,223 1,411,781 -
			8,325,957 $

The Group transacts with a variety of financial institutions all with high credit quality to disperse credit risk, so it expects that the probability of counterparty default is remote.

~18~

(2) Financial assets at fair value through profit or loss

Current items: Financial assets mandatorily measured at fair value through profit or loss Listed stocks Beneficiary certificates Non-current items: Financial assets mandatorily measured at fair value through profit or loss Beneficiary certificates Hybrid instruments	September30,2023 133,785 $ 470,908 604,693 - $ 53,000 53,000 657,693 $	December31,2022 159,902 $ 1,403,385 1,563,287 305,145 $ 53,000 358,145 1,921,432 $	September30,2022 148,709 $ 1,476,095 1,624,804 305,619 $ -
			305,619
			1,930,423 $

• A. Amounts recognized in profit or loss in relation to financial assets at fair value through profit or loss are listed below:

loss are listed below:
	For	the three-month		For	the three-month
		period ended			period ended
	September30,2023			September30,2022
Financial assets mandatorily measured at fair value
through profit or loss
Equity instruments	($	12,081)	($		28,604)
Beneficiary certificates		7,403	(		5,723)
	($	4,678)	($		34,327)
	For the nine-month			For the nine-month
		period ended			period ended
	September30,2023			September30,2022
Financial assets mandatorily measured at fair value
through profit or loss
Equity instruments	($	26,117)	($		210,182)
Beneficiary certificates		19,133			3,740
	($	6,984)	($		206,442)

• B. The Group has no financial assets at fair value through profit or loss pledged to others.

~19~

(3) Financial assets at fair value through other comprehensive income

Items Non-current items: Equity instruments Listed stocks Emerging stocks Unlisted stocks	September30,2023 699,059 $ - 2,404,336 3,103,395 $	December31,2022 718,427 $ 28,771 2,352,561 3,099,759 $	September30,2022 562,184 $ 27,404 2,480,193
			3,069,781 $

• A. The Group has elected to classify equity instruments investments that are considered to be strategic investments as financial assets at fair value through other comprehensive income. The fair value of such investments amounted to $3,103,395, $3,099,759 and $3,069,781 on September 30, 2023, December 31, 2022 and September 30, 2022, respectively.

• B. Amounts recognized in other comprehensive income in relation to the financial assets at fair value through other comprehensive income are listed below:

	For	the three-month	For	the three-month
		period ended		period ended
	September30,2023		September 30, 2022
Equity instruments at fair value through other
comprehensive income
Fair value change recognised in
other comprehensive (loss) income	($	40,598)	$	8,148
	For the nine-month		For the nine-month
		period ended		period ended
	September 30, 2023		September 30, 2022
Equity instruments at fair value through other
comprehensive income
Fair value change recognised in
other comprehensive loss	($	175,751)	($	931,817)
Cumulative gains reclassified
to retained earnings due to disposal	($	16,445)	$	-

• C. The Group has no financial assets at fair value through other comprehensive income pledged to others.

~20~

(4) Financial assets at amortized cost

Financial assets at amortized cost
Items Current items: Time deposits Non-current items: Corporate bonds Time deposits	September30,2023 December31,2022 38,172,964 $ 41,595,837 $ 5,081,146 $ 532,574 $ 94,091 85,907 5,175,237 $ 618,481 $	September30,2022 62,888,582 $
		- $ 85,740 85,740 $

• A. Details of the Group’s financial assets at amortized cost pledged to others as collateral are provided in Note 8.

• B. Information relating to credit risk of financial assets at amortised cost is provided in Note 12(2). The counterparties of the Group’s investments in time deposits were financial institutions who have good credit quality, so it expects that the probability of counterparty default is remote.

(5) Accounts receivable

Accounts receivable
	September30,2023			December31,2022		September 30, 2022
Accounts receivable	$	14,111,603		$	9,472,662	$	13,931,517
Accounts receivable - related
parties		2,555,457			2,605,318		3,873,792
Less: Allowance for bad debts	(	109,331)	(		65,295)	(	108,499)
	$	16,557,729		$	12,012,685	$	17,696,810

• A. The aging analysis of accounts receivable is as follows:

Not past due Up to 30 days 31 to 90 days Over 90 days	September30,2023 16,286,919 $ 377,042 3,062 37 16,667,060 $	December31,2022 12,034,050 $ 43,893 - 37 12,077,980 $	September30,2022
			17,480,575 $ 324,698 - 36
			17,805,309 $

The above aging analysis is based on past due date.

• B. As at September 30, 2023, December 31, 2022 and September 30, 2022, accounts receivable were all from contracts with customers. And as at January 1, 2022, the balance of receivables from contracts with customers amounted to $16,087,715.

• C. The Group has no accounts receivable pledged to others.

• D. Information relating to credit risk of accounts receivable is provided in Note 12(2).

~21~

(6) Inventories

Inventories
Raw materials Work in process Finished goods Raw materials Work in process Finished goods Raw materials Work in process Finished goods	Allowance for obsolescence and Cost marketvalue decline 2,762,476 $ 1,308,622) ($ 8,246,798 2,635,516) ( 10,554,593 2,836,157) ( 21,563,867 $ 6,780,295) ($ Allowance for obsolescence and Cost market value decline 9,483,560 $ 1,024,725) ($ 8,905,516 948,334) ( 10,319,326 1,182,800) ( 28,708,402 $ 3,155,859) ($ Allowance for obsolescence and Cost market value decline 5,840,686 $ 1,074,102) ($ 10,968,875 522,495) ( 10,795,856 1,072,514) ( 27,605,417 $ 2,669,111) ($ September30,2022 September30,2023 December31,2022	Bookvalue
		1,453,854 $ 5,611,282 7,718,436
		14,783,572 $
		Book value
		8,458,835 $ 7,957,182 9,136,526
		25,552,543 $
		Book value
		4,766,584 $ 10,446,380 9,723,342
		24,936,306 $

Operating costs incurred on inventories for the three-month and nine-month periods ended September 30, 2023 and 2022 were as follows:

30, 2023 and 2022 were as follows:
Cost of inventories sold and others Inventory loss on decline in market value, obsolete and slow-moving inventories Loss on scrap inventory	For the three-month period ended September30,2023 14,138,619 $ 1,320,822 9,358 15,468,799 $	For the three-month period ended September30,2022
		15,282,466 $ 154,490 31,275
		15,468,231 $

~22~

Investments accounted for under equity method For the nine-month period ended September30,2023 Cost of inventories sold and others 38,340,317 $ Inventory loss on decline in market value, obsolete and slow-moving inventories 3,516,270 Loss on scrap inventory 94,384 41,950,971 $ September 30, 2023 December31,2022 Estinet Technologies Incorporation - $ 2,276 $ Innorich Venture Capital Corp. 113,692 135,808 Starmems Semiconductor Corp. 22,711 32,587 136,403 $ 170,671 $	For the nine-month period ended September30,2022
	43,296,530 $ 1,473,402 122,875 44,892,807 $ September 30, 2022 2,600 $ 137,411 36,880 176,891 $
Estinet Technologies Incorporation Innorich Venture Capital Corp. Starmems Semiconductor Corp.

(7) Investments accounted for under equity method

The loss on investments accounted for under equity method amounted to $14,942, $3,222, $42,580 and $14,503 for the three-month and nine-month periods ended September 30, 2023 and 2022, respectively.

(8) Property, plant and equipment

At January 1, 2023 Cost Accumulated depreciation and impairment 2023 At January 1 Additions Disposals Reclassifications Depreciation Net exchange difference At September 30 At September 30, 2023 Cost Accumulated depreciation and impairment	Land Buildings Machinery Test equipment Office equipment Others Total 489,370 $ 3,083,025 $ 1,292,529 $ 3,414,364 $ 434,731 $ 3,085,480 $ 11,799,499 $ - 1,187,897) ( 532,861) ( 1,960,834) ( 215,677) ( 345,594) ( 4,242,863) ( 489,370 $ 1,895,128 $ 759,668 $ 1,453,530 $ 219,054 $ 2,739,886 $ 7,556,636 $ 489,370 $ 1,895,128 $ 759,668 $ 1,453,530 $ 219,054 $ 2,739,886 $ 7,556,636 $ - 39,530 44,966 751,661 27,982 721,046 1,585,185 - - 7,451) ( 2,503) ( 172) ( - 10,126) ( - - 1,903 69,302) ( 14,370 53,029 - - 81,204) ( 146,675) ( 478,515) ( 49,685) ( 113,553) ( 869,632) ( - 3,920 384 129 449 4,141 9,023 489,370 $ 1,857,374 $ 652,795 $ 1,655,000 $ 211,998 $ 3,404,549 $ 8,271,086 $ 489,370 $ 3,119,660 $ 1,318,829 $ 4,093,862 $ 476,170 $ 3,865,397 $ 13,363,288 $ - 1,262,286) ( 666,034) ( 2,438,862) ( 264,172) ( 460,848) ( 5,092,202) ( 489,370 $ 1,857,374 $ 652,795 $ 1,655,000 $ 211,998 $ 3,404,549 $ 8,271,086 $	Total
		8,271,086 $

~23~

==> picture [506 x 263] intentionally omitted <==

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

Land Buildings Machinery Test equipment Office equipment Others Total
At January 1, 2022
Cost $ 489,370 $ 3,466,696 $ 4,185,792 $ 3,926,851 $ 492,603 $ 2,477,232 $ 15,038,544
Accumulated
depreciation and
impairment - ( 1,517,259) ( 3,546,371) ( 2,638,725) ( 255,610) ( 777,641) ( 8,735,606)
$ 489,370 $ 1,949,437 $ 639,421 $ 1,288,126 $ 236,993 $ 1,699,591 $ 6,302,938
2022
At January 1 $ 489,370 $ 1,949,437 $ 639,421 $ 1,288,126 $ 236,993 $ 1,699,591 $ 6,302,938
Additions - - 227,396 631,396 37,195 838,426 1,734,413
- - -
Disposals ( 3) ( 2,365) ( 58) ( 2,426)
Reclassifications - - - 4,264 - ( 4,264) -
-
Depreciation ( 108,421) ( 120,907) ( 405,052) ( 46,793) ( 87,009) ( 768,182)
Net exchange difference - 34,892 ( 1,787) 3,860 1,808 ( 1,870) 36,903
At September 30 $ 489,370 $ 1,875,905 $ 744,123 $ 1,520,229 $ 229,145 $ 2,444,874 $ 7,303,646
At September 30, 2022
Cost $ 489,370 $ 3,486,304 $ 4,413,125 $ 4,555,126 $ 530,556 $ 3,315,655 $ 16,790,136
Accumulated
depreciation and
impairment - ( 1,610,399) ( 3,669,002) ( 3,034,897) ( 301,411) ( 870,781) ( 9,486,490)
$ 489,370 $ 1,875,905 $ 744,123 $ 1,520,229 $ 229,145 $ 2,444,874 $ 7,303,646
----- End of picture text -----

• A. There was no capitalization of borrowing costs attributable to the property, plant and equipment.

• B. The Group has no property, plant and equipment pledged to others.

• －

• (9) Leasing arrangements lessee

• A. The Group leases various assets including land, buildings and other equipment. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose covenants, but leased assets may not be used as security for borrowing purposes.

• B. The carrying amount of right-of-use assets and the depreciation are as follows:

Land Buildings Other equipment		Carrying amount
	September30,2023 1,568,349 $ 210,130 24,446 1,802,925 $	December31,2022 1,354,240 $ 182,939 149 1,537,328 $	September30,2022
			1,361,426 $ 216,808 598
			1,578,832 $

Land Buildings Other equipment	Depreciation	Depreciation
	For the three-month period ended September30,2023 9,489 $ 16,070 2,334 27,893 $	For the three-month period ended September30,2022
		6,906 $ 22,754 448
		30,108 $

~24~

Land Buildings Other equipment	Depreciation	Depreciation
	For the nine-month period ended September30,2023 26,845 $ 53,265 4,385 84,495 $	For the nine-month period ended September30,2022
		21,249 $ 60,452 1,345
		83,046 $

• C. For the three-month and nine-month periods ended September 30, 2023 and 2022, the additions to right-of-use assets were $1,835, $2,064, $344,223 and $68,618, respectively.

• D. The information on profit and loss accounts relating to lease contracts is as follows:

Items affecting profit or loss Interest expense on lease liabilities Items affecting profit or loss Interest expense on lease liabilities	For the three-month period ended September30,2023 9,842 $ For the nine-month period ended September30,2023 24,531 $	For the three-month period ended September 30, 2022
		6,629 $
		For the nine-month period ended September30,2022
		21,196 $

• E. For the three-month and nine-month periods ended September 30, 2023 and 2022, the Group’s total cash outflow for leases were $38,751, $36,853, $109,872 and $93,577, respectively.

• (10) Investment property

Investment property
				Buildings
			2023			2022
At January 1
Cost		$		82,504	$		81,152
Accumulated depreciation and impairment	(			44,088)	(		39,511)
		$		38,416	$		41,641
At January 1		$		38,416	$		41,641
Depreciation	(			2,928)	(		2,946)
Net exchange difference				47			1,257
At September 30		$		35,535	$		39,952
At September 30
Cost		$		82,639	$		83,668
Accumulated depreciation and impairment	(			47,104)	(		43,716)
		$		35,535	$		39,952

~25~

• A. Rental income from the lease of the investment property and direct operating expenses arising from the investment property are shown below:

from the investment property are shown below:
Rental income from the lease of the investment property Operating expenses arising from the investment property that generated rental income during the period Rental income from the lease of the investment property Operating expenses arising from the investment property that generated rental income during the period	For the three-month period ended September30,2023 561 $ 971 $ For the nine-month period ended September 30, 2023 1,693 $ 2,928 $	For the three-month period ended September30,2022 569 $ 985 $ For the nine-month period ended September30,2022
		1,708 $
		2,946 $

• B. The Group’s investment property is located in Mainland China. The fair value is based on valuation information from Information Centre of Real Estate in local governments in Mainland China and is adjusted and classified as level 3 accordingly. As at September 30, 2023, December 31, 2022 and September 30, 2022, the fair values were $112,614, $133,060, and $134,487, respectively.

(11) Intangible assets

Intangible assets
			Computer			Intellectual
			software			property			Goodwill			Others			Total
At January 1, 2023
Cost		$	7,099,807		$	6,117,679		$	639,561		$	348,766		$	14,205,813
Accumulated amortisation
and impairment	(		5,700,830)	(		5,162,742)	(		639,561)	(		289,485)	(		11,792,618)
		$	1,398,977		$	954,937		$	-		$	59,281		$	2,413,195
2023
At January 1		$	1,398,977		$	954,937		$	-		$	59,281		$	2,413,195
Additions			1,086,345			256,412			-			45,516			1,388,273
Reclassifications			85,899			-			-	(		85,899)			-
Amortisation	(		839,054)	(		448,870)			-	(		5,687)	(		1,293,611)
Net exchange difference			29			15,461			-			45			15,535
At September 30		$	1,732,196		$	777,940		$	-		$	13,256		$	2,523,392
At September 30, 2023
Cost		$	3,581,614		$	2,901,942		$	639,561		$	323,376		$	7,446,493
Accumulated amortisation
and impairment	(		1,849,418)	(		2,124,002)	(		639,561)	(		310,120)	(		4,923,101)
		$	1,732,196		$	777,940		$	-		$	13,256		$	2,523,392

~26~

			Computer			Intellectual
			software			property			Goodwill			Others			Total
At January 1, 2022
Cost		$	5,639,381		$	5,805,930		$	639,561		$	281,520		$	12,366,392
Accumulated amortisation
and impairment	(		4,737,026)	(		4,517,428)	(		639,561)	(		240,683)	(		10,134,698)
		$	902,355		$	1,288,502		$	-		$	40,837		$	2,231,694
2022
At January 1		$	902,355		$	1,288,502		$	-		$	40,837		$	2,231,694
Additions			1,406,498			38,402			-			31,270			1,476,170
Amortisation	(		715,768)	(		468,510)			-	(		16,171)	(		1,200,449)
Net exchange difference			421	(		3,680)			-			2,395	(		864)
At September 30		$	1,593,506		$	854,714		$	-		$	58,331		$	2,506,551
At September 30, 2022
Cost		$	7,047,842		$	5,850,280		$	639,561		$	351,743		$	13,889,426
Accumulated amortisation
and impairment	(		5,454,336)	(		4,995,566)	(		639,561)	(		293,412)	(		11,382,875)
		$	1,593,506		$	854,714		$	-		$	58,331		$	2,506,551

Details of amortization on intangible assets are as follows:

			For the three-month	For the three-month	For	the three-month
				period ended		period ended
			September30,2023		September 30, 2022
Operating costs			$	1,156	$	692
Operating expenses				407,748		407,275
			$	408,904	$	407,967
			For the nine-month		For the nine-month
				period ended		period ended
			September30,2023		September 30, 2022
Operating costs			$	3,513	$	1,412
Operating expenses				1,290,098		1,199,037
			$	1,293,611	$	1,200,449
Short-term borrowings
Type ofborrowings	September30,2023			Interestraterange		Collateral
Bank borrowings
Unsecured borrowings	$	6,386,080		1.35%~5.75%		None
Type of borrowings	December31,2022			Interest rate range		Collateral
Bank borrowings
Unsecured borrowings	$	13,737,994		1.18%~2.3%		None
Type ofborrowings	September30,2022			Interestraterange		Collateral
Bank borrowings
Unsecured borrowings	$	9,927,317		0.89%~3.64%		None

(12) Short-term borrowings

~27~

Interest expense of bank borrowings recognized in profit or loss amounted to $38,958, $76,749, $152,371 and $115,148 for the three-month and nine-month periods ended September 30, 2023 and 2022, respectively.

(13) Other payables

Accrued salaries and bonus Payable for dividends and cash from capital surplus Payable for employees’ compensation Other accrued expenses Payables on equipment Payables on software and intellectual property Others	September30,2023 December31,2022 September30,2022 7,557,075 $ 11,366,632 $ 12,541,103 $ 13,847,318 - 13,847,318 14,089,776 12,002,603 14,244,330 2,920,968 2,531,844 2,585,284 250,556 114,514 468,696 1,638,880 1,292,307 1,822,236 340,744 376,595 386,212 40,645,317 $ 27,684,495 $ 45,895,179 $

- (14) Long term borrowings

Type of borrowings Loan for Accelerated Investment by Domestic Corporations (Note) Type of borrowings Loan for Accelerated Investment by Domestic Corporations (Note) Type of borrowings Loan for Accelerated Investment by Domestic Corporations (Note)	Borrowing Repayment period term 2021/11/8 ~2028/4/27 Repayable in instalment over the agreed period Borrowing Repayment period term 2021/11/8 ~2027/12/15 Repayable in instalment over the agreed period Borrowing Repayment period term 2021/11/8 ~2027/2/15 Repayable in instalment over the agreed period	Interest rate range 1.050%～ 1.250% Interest rate range 0.925%～ 1.125% Interest rate range 0.675%～ 0.875%	Collateral None Collateral None Collateral None	September30,2023
				2,011,134 $
				December31,2022
				$1,713,316
				September30,2022
				$1,537,407

Note: The Ministry of Economic Affairs implemented the “Action Plan for Accelerated Investment by Domestic Corporations” on July 1, 2019. An entity can apply for a subsidized loan for an eligible investment project from financial institutions at a preferential interest rate. The Group is qualified for the loan as approved by the Ministry of Economic Affairs and entered into a loan contract with a financial institution with a credit period of 5 years. The loan is used for construction of plant and related facilities.

~28~

(15) Pension

• A. (a) The Company has a defined benefit pension plan in accordance with the Labor Standards Law, covering all regular employees’ service years prior to the enforcement of the Labor Pension Act on July 1, 2005 and service years thereafter of employees who chose to continue to be subject to the pension mechanism under the Law. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement. The Company contributes monthly an amount equal to 2% of the employees’ monthly salaries and wages to the retirement fund deposited with Bank of Taiwan, the trustee, under the name of the independent retirement fund committee. Also, the Company would assess the balance in the aforementioned labor pension reserve account by December 31, every year. If the account balance is insufficient to pay the pension calculated by the aforementioned method to the employees expected to qualify for retirement in the following year, the Company will make contributions for the deficit by next March.

• (b) The pension costs under the defined benefit pension plans of the Group for the three-month and nine-month periods ended September 30, 2023 and 2022 were $532, $504, $1,595 and $1,513, respectively.

• (c) Expected contributions to the defined benefit pension plans of the Company for the year ending December 31, 2023 amount to $6,000.

• B. (a) Effective July 1, 2005, the Company and domestic subsidiaries have established a defined contribution pension plan (the “New Plan”) under the Labor Pension Act (the “Act”), covering all regular employees with R.O.C. nationality. Under the New Plan, the Company and its domestic subsidiaries contribute monthly an amount based on 6% of the employees’ monthly salaries and wages to the employees’ individual pension accounts at the Bureau of Labor Insurance. Employees may receive the payment of the pension every month or on a lump-sum basis depending on the accumulated earnings in the personal pension account.

• (b) The Company’s mainland China subsidiaries, Realsil Microelectronics (Suzhou) Co.,LTD, Realtek Semiconductor (Shen Zhen) Corp., Cortina Network Systems (Shanghai) Co., Ltd., RayMX Microelectronics Corp. and Suzhou PanKore Integrated Circuit Technology Co. Ltd. have a defined contribution plan. Monthly contributions to an independent fund administered by the government in accordance with the pension regulations in the People’s Republic of China (PRC) are based on certain percentage of employees’ monthly salaries and wages. Monthly contributions to an independent fund are administered by the government. Other than the monthly contributions, the Group has no further obligations.

~29~

• (c) The pension costs under the defined contribution pension plans of the Group for the threemonth and nine-month periods ended September 30, 2023 and 2022 were $108,587, $98,501, $320,210 and $292,626, respectively.

(16) Provision

Provision
At January 1 Increase in provision Effect of exchange rate At September 30	2023 1,287,710 $ 92,864 52,031 1,432,605 $	2022
		989,475 $ 146,666 156,878
		1,293,019 $

As at September 30, 2023, provisions were estimated for potential infringement litigations.

• (17) Share capital

• A. As at September 30, 2023, the Company’s authority capital was $8,900,000, consisting of 890 million shares of common stock (including 80 million shares reserved for employee stock options), and the paid-in capital was $5,128,636 with a par value of $10 (in dollars) per share. All proceeds from shares issued have been collected.

Movements in the number (thousands of shares) of the Company's common shares outstanding are as follows:

outstanding are as follows:
At January 1 Employees’ compensation transferred to common shares At September 30	2023 512,863 - 512,863	2022
		510,684 2,179
		512,863

• B. On March 18, 2022, the Company’s Board of Directors resolved to distribute employees’ compensation in the form of stocks amounting to $991,338. The Company issued 2,179 thousand shares based on the closing price of the Company’s share at the previous day of the Board meeting resolution at 455 NT dollar, which was approved by the competent authority, and the record date of issuance of new shares was March 30, 2022. The registration for the distribution of employees’ compensation was completed on April 13, 2022.

• C. On January 24, 2002, the Company increased its new common stock and sold its old common stock by issuing 13,924 thousand units of GDRs for cash. Each GDR unit represents 4 common stocks, so the total common stocks issued were 55,694 thousand shares. The Company’s GDRs are traded in the Luxembourg Stock Exchange. As at September 30, 2023, the outstanding GDRs were 428 thousand units, or 1,711 thousand shares of common stock, representing 0.33% of the Company’s total common stocks.

~30~

(18) Capital surplus

Pursuant to the R.O.C. Company Act, capital surplus arising from paid-in capital in excess of par value on issuance of common stocks and donations can be used to cover accumulated deficit or to issue new stocks or cash to shareholders in proportion to their share ownership, provided that the Company has no accumulated deficit. Further, the R.O.C. Securities and Exchange Act requires that the amount of capital surplus to be capitalized mentioned above should not exceed 10% of the paid-in capital each year. Capital surplus should not be used to cover accumulated deficit unless the legal reserve is insufficient.

Change in equity of associates accounted for under Share premium equitymethod At January 1 982,830 $ 61,261 $ Changes in equity of associates accounted for under equity method - 9,549 Cash from capital surplus 512,864) ( - At September 30 469,966 $ 70,810 $ 2023 Change in equity of associates accounted for under Sharepremium equitymethod At January 1 1,039,006 $ 61,261 $ Employees’ compensation transferred to common shares 969,551 - Cash from capital surplus 1,025,727) ( - At September 30 982,830 $ 61,261 $ 2022

Others Total 1,056 $ 1,045,147 $ - 9,549 - 512,864) ( 1,056 $ 541,832 $ Others Total 812 $ 1,101,079 $ - 969,551 - 1,025,727) ( 812 $ 1,044,903 $

~31~

(19) Retained earnings

• A. Under the Company’s Articles of Incorporation, the current year’s earnings, if any, shall first be used to pay all taxes and offset prior years’ operating losses and then 10% of the remaining amount shall be set aside as legal reserve, if legal reserve has accumulated to an amount equal to the paid-in capital, then legal reserve is not required to be set aside any more. After that, special reserve shall be set aside or reversed in accordance with the related laws or the regulations made by the Competent Authority. The remainder, if any, along with prior year’s accumulated undistributed earnings shall be proposed by the Board of Directors. However, the appropriation of earnings shall be resolved by the shareholders if earnings are distributed by issuing new shares, or the appropriation of earnings shall be resolved by the Board of Directors, if earnings are distributed in the form of cash. The Company should consider factors affecting finance, business and operations to appropriate distributable earnings for the period, and appropriate all or partial reserve in accordance with regulations of the Competent Authority. Dividends shall account for at least 50% of the distributable earnings added in the current year.

The Company’s dividend policy takes into consideration the Company’s future expansion plans and future cash flows. In accordance with the Company’s dividend policy, cash dividends shall account for at least 10% of the total dividends distributed.

• In accordance with Company Act Article 240, Item 5 and Article 241, Item 2, the resolution, for all or partial of distributable dividends, legal reserve and capital surplus are distributed in the form of cash, will be adopted by a majority vote at a meeting of the Board of Directors attended by at least two-thirds of the total number of directors, and will be reported to the shareholders.

• B. Except for covering accumulated deficit or issuing new stocks or cash to shareholders in proportion to their share ownership, the legal reserve shall not be used for any other purpose. The use of legal reserve for the issuance of stocks or cash to shareholders in proportion to their share ownership is permitted, provided that the distribution of the reserve is limited to the portion in excess of 25% of the Company’s paid-in capital.

• C. In accordance with the regulations, the Company shall set aside special reserve from the debit balance on other equity items at the balance sheet date before distributing earnings. When debit balance on other equity items is reversed subsequently, the reversed amount could be included in the distributable earnings.

~32~

• D. The appropriation of 2022 and 2021 earnings had been resolved at the shareholders’ meeting on June 6, 2023 and June 8, 2022, respectively. Details are summarized below:

Dividends per share Amount (indollars) Legal reserve 1,620,405 $ - $ Special reserve 1,776,089) ( - Cash dividends 13,334,455 26.00 Total 13,178,771 $ 26.00 $ 2022	2021	2021
	Amount 1,685,276 $ 220,040 12,821,591 14,726,907 $	Dividends per share (indollars)
		- $ - 25.00
		25.00 $

• E. On April 21, 2023, the Board of Directors of the Company proposed to distribute cash dividends from capital surplus to shareholders in the amount of $512,864 (NT$1 per share).

• F. On April 22, 2022, the Board of Directors of the Company proposed to distribute $1,025,727 by cash (NT$2 per share) from capital surplus.

(20) Other equity items

2023

					2023
			Unrealised gains		Currency
		(losses)onvaluation		translation difference				Total
At January 1		$	1,391,817	$	1,294,358		$	2,686,175
Revaluation:
–Group	(		175,751)		-	(		175,751)
Revaluation transferred to
retained earnings:
–Group	(		16,445)		-	(		16,445)
Currency translation differences:
–Group			-		2,756,960			2,756,960
At September 30		$	1,199,621	$	4,051,318		$	5,250,939
					2022
			Unrealised gains		Currency
		(losses) onvaluation		translationdifference				Total
At January 1		$	2,380,781	($	4,156,871)	($		1,776,090)
Revaluation:
–Group	(		931,817)		-	(		931,817)
Currency translation differences:
–Group			-		7,402,482			7,402,482
At September 30		$	1,448,964	$	3,245,611		$	4,694,575

~33~

(21) Operating revenue

Operating revenue
Revenue from contracts with customers Revenue from contracts with customers	For the three-month period ended September30,2023 26,678,445 $ For the nine-month period ended September30,2023 72,594,151 $	For the three-month period ended September30,2022 29,772,018 $
		For the nine-month period ended September30,2022 90,027,673 $

A. Disaggregation of revenue from contracts with customers

The Group derives revenue from the transfer of goods and services at a point in time in the following major product lines:

following major product lines:
For the three-month period ended September 30, 2023 Revenue from external customer contracts Timing of revenue recognition At a point in time For the nine-month period ended September 30, 2023 Revenue from external customer contracts Timing of revenue recognition At a point in time For the three-month period ended September 30, 2022 Revenue from external customer contracts Timing of revenue recognition At a point in time For the nine-month period ended September 30, 2022 Revenue from external customer contracts Timing of revenue recognition At a point in time	Integrated circuit products 26,629,691 $ 26,629,691 $ Integrated circuit products 72,449,805 $ 72,449,805 $ Integrated circuit products 29,725,780 $ 29,725,780 $ Integrated circuit products 89,887,747 $ 89,887,747 $	Others 48,754 $ 48,754 $ Others 144,346 $ 144,346 $ Others 46,238 $ 46,238 $ Others 139,926 $ 139,926 $	Total
			26,678,445 $
			26,678,445 $
			Total
			72,594,151 $
			72,594,151 $
			Total
			29,772,018 $
			29,772,018 $
			Total
			90,027,673 $
			90,027,673 $

B. Contract liabilities

The Group has recognized the following revenue-related contract liabilities:

September 30, 2023 December 31, 2022 September 30, 2022 January 1,2022

Contract liabilities - advance sales receipts	233,066 $	117,752 $	181,020 $ 211,100 $

~34~

Revenue recognized that was included in the contract liability balance at the beginning of the period:

Contract liabilities – advance sales receipts Contract liabilities – advance sales receipts	For the three-month period ended For the three-month period ended September30,2023 September 30, 2022 30,920 $ 55,640 $ For the nine-month period ended For the nine-month period ended September 30, 2023 September 30, 2022 116,342 $ 189,536 $

C. Refund liabilities (shown in other current liabilities)

The Group estimates the discounts based on accumulated experience. The estimation is subject to an assessment at each reporting date.

The following refund liabilities:

Interest income Other income Refund liabilities – current Interest income from bank deposits corporate bonds Interest income from bank deposits corporate bonds Dividend income Other income	September30,2023 December31,2022 8,564,542 $ 8,932,366 $ For the three-month period ended September30,2023 and 677,997 $ For the nine-month period ended September30,2023 and 1,880,521 $ For the three-month period ended September30,2023 29,762 $ 30,335 60,097 $	September30,2022 9,358,067 $ For the three-month period ended September30,2022	September30,2022
			9,358,067 $
	and and
		361,657 $
		For the nine-month period ended September30,2022
		689,725 $
		For the three-month period ended September30,2022
		35,471 $ 73,924
		109,395 $

(22) Interest income

(23) Other income

~35~

	For the nine-month	For the nine-month	For the nine-month	For the nine-month
		period ended		period ended
	September 30, 2023		September30,2022
Dividend income	$	33,337	$	60,741
Other income		47,106		156,344
	$	80,443	$	217,085

(24) Other gains and losses

Other gains and losses
		For	the three-month		For	the three-month
			period ended			period ended
		September30,2023			September30,2022
Gains (losses) on disposal of property, plant and		$	4,886	($		27)
equipment
Net currency exchange gains			19,755			14,484
Losses on financial assets at fair value
through profit or loss	(		4,678)	(		34,327)
Other losses	(		14,417)	(		10,124)
		$	5,546	($		29,994)
		For the nine-month			For the nine-month
			period ended			period ended
		September30,2023			September30,2022
Gains (losses) on disposal of property, plant and		$	5,276	($		2,079)
equipment
Gains on disposal of investments			6,220			-
Gains arising from lease modifications			-			24
Net currency exchange gains			30,925			196,241
Losses on financial assets at fair value
through profit or loss	(		6,984)	(		206,442)
Other losses	(		15,682)	(		29,719)
		$	19,755	($		41,975)

(25) Finance costs

Finance costs
Interest expense Bank borrowings Lease liabilities	For the three-month period ended September30,2023 38,958 $ 9,842 48,800 $	For the three-month period ended September30,2022
		76,749 $ 6,629
		83,378 $

~36~

(26) (27)	Expenses by nature Employee benefit expenses Interest expense Bank borrowings Lease liabilities Employee benefit expenses Depreciation Amortisation Employee benefit expenses Depreciation Amortisation Wages and salaries Labor and health insurance fees Pension costs Other personnel expenses Total Wages and salaries Labor and health insurance fees Pension costs Other personnel expenses Total	For the nine-month period ended September 30, 2023 152,371 $ 24,531 176,902 $ For the three-month period ended September30,2023 6,696,332 $ 323,420 408,904 For the nine-month period ended September30,2023 17,829,231 $ 957,055 1,293,611 For the three-month period ended September30,2023 6,297,350 $ 207,003 109,119 82,860 6,696,332 $ For the nine-month period ended September30,2023 16,609,551 $ 647,649 321,805 250,226 17,829,231 $	For the nine-month period ended September 30, 2022
			115,148 $ 21,196 136,344 $
			For the three-month period ended September 30, 2022
			7,632,549 $ 297,599 407,967 For the nine-month period ended September30,2022
			23,912,755 $ 854,174 1,200,449 For the three-month period ended September30,2022
			7,300,106 $ 175,658 99,005 57,780
			7,632,549 $
			For the nine-month period ended September30,2022
			22,875,664 $ 567,205 294,139 175,747
			23,912,755 $

~37~

• A. In accordance with the Company’s Articles of Incorporation, the Company shall appropriate no higher than 3% for directors’ remuneration and no less than 1% for employees’ compensation, if the Company generates profit. If the Company has accumulated deficit, earnings should be reserved to cover losses before the appropriation of directors’ remuneration and employees’ compensation.

• Aforementioned employees’ compensation could be distributed by cash or stocks. Specifics of the compensation are to be determined by a majority vote at a meeting of the Board of Directors attended by at least two-thirds of the total number of directors. The resolution should be reported to the shareholders during the shareholders’ meeting.

• B. For the three-month and nine-month periods ended September 30, 2023 and 2022, employees’ compensation was accrued at $757,006, $1,240,613, $2,047,171 and $4,133,481, respectively; directors’ remuneration was accrued at $0, $0, $86,011 and $163,939, respectively. The amounts were estimated as operating cost or operating expense in accordance with the Company’s Articles of Incorporation.

• On April 21, 2023, employees’ compensation was $4,765,898, and directors’ remuneration was $120,000 for 2022 resolved at the meeting of the Board of Directors agreed with those amounts recognized in the 2022 financial statements.

• Information about employees’ compensation and directors’ remuneration of the Company as resolved by the Board of Directors will be posted in the “Market Observation Post System” at the website of the Taiwan Stock Exchange.

(28) Income tax

• A. Income tax expense

the website of the Taiwan Stock Exchange. ome tax Income tax expense
		For	the three-month		For	the three-month
			period ended			period ended
		September30,2023			September30,2022
Current income tax:
Current income tax on profit for the period		$	137,768		$	184,179
Deferred income tax:
Origination and reversal of temporary
differences	(		40,029)	(		822)
Income tax expense		$	97,739		$	183,357

~38~

		For the nine-month	For the nine-month		For the nine-month	For the nine-month
			period ended			period ended
		September30,2023			September30,2022
Current income tax:
Current income tax on profit for the period		$	372,590		$	848,260
Tax on undistributed earnings			151,264			106,293
Prior year income tax overestimation	(		195,678)	(		355,446)
Total current income tax			328,176			599,107
Deferred income tax:
Origination and reversal of temporary
differences	(		40,927)	(		1,856)
Income tax expense		$	287,249		$	597,251

B. As at September 30, 2023, the Company’s income tax returns through 2021 have been assessed and approved by the Tax Authority.

(29) Earnings per share

and approved by the Tax Authority. Earnings per share
Basic earnings per share Profit attributable to common shareholders of the parent company Diluted earnings per share Profit attributable to common shareholders of the parent company Assumed conversion of all dilutive potential common shares Employees’ compensation Profit attributable to common shareholders of the parent company plus assumed conversion of all dilutive potential common shares	For the three-monthperiod endedSeptember30,2023
	Amount after tax 2,571,924 $ 2,571,924 $ - 2,571,924 $	Weighted average number of common shares outstanding (shares inthousands) 512,863 512,863 1,916 514,779	Earnings per share (indollars)
			5.01 $
			5.00 $

~39~

For the three-month period ended September 30, 2022

	Forthe three-monthperiod ended September30,2022	Forthe three-monthperiod ended September30,2022	er30,2022
Basic earnings per share Profit attributable to common shareholders of the parent company Diluted earnings per share Profit attributable to common shareholders of the parent company Assumed conversion of all dilutive potential common shares Employees’ compensation Profit attributable to common shareholders of the parent company plus assumed conversion of all dilutive potential common shares Basic earnings per share Profit attributable to common shareholders of the parent company Diluted earnings per share Profit attributable to common shareholders of the parent company Assumed conversion of all dilutive potential common shares Employees’ compensation Profit attributable to common shareholders of the parent company plus assumed conversion of all dilutive potential common shares	Weighted average number of common shares Earnings Amount after outstanding (shares per share tax inthousands) (indollars) 4,207,022 $ 512,863 8.20 $ 4,207,022 $ 512,863 - 4,578 4,207,022 $ 517,441 8.13 $ Forthenine-monthperiod ended September30,2023		Earnings per share (indollars)
			8.20 $
			8.13 $
	Amount after tax 6,972,304 $ 6,972,304 $ - 6,972,304 $	Weighted average number of common shares outstanding (shares inthousands) 512,863 512,863 7,647 520,510	Earnings per share (indollars)
			13.59 $
			13.40 $

~40~

For the nine-month period ended September 30, 2022

Basic earnings per share Profit attributable to common shareholders of the parent company Diluted earnings per share Profit attributable to common shareholders of the parent company Assumed conversion of all dilutive potential common shares Employees’ compensation Profit attributable to common shareholders of the parent company plus assumed conversion of all dilutive potential common shares	Amount after tax 14,070,401 $ 14,070,401 $ - 14,070,401 $	Weighted average number of common shares Earnings outstanding (shares per share inthousands) (indollars) 512,257 27.47 $ 512,257 18,285 530,542 26.52 $

(30) Supplemental cash flow information

Investing activities with partial cash payments

Supplemental cash flow information Investing activities with partial cash payments
	For the nine-month		For the nine-month
		period ended		period ended
	September30,2023		September30,2022
Purchase of property, plant and equipment	$	1,585,185	$	1,734,413
Add: Opening balance of payable on equipment		114,514		283,796
Less: Ending balance of payable on equipment	(	250,556)	(	468,696)
Cash paid during the period	$	1,449,143	$	1,549,513
	For the nine-month		For the nine-month
		period ended		period ended
	September30,2023		September30,2022
Purchase of intangible assets	$	1,388,273	$	1,476,170
Add: Opening balance of payable on
software and intellectual property		1,292,307		1,445,930
Less: Ending balance of payable on
software and intellectual property	(	1,638,880)	(	1,822,236)
Cash paid during the period	$	1,041,700	$	1,099,864

~41~

									For the nine-month	For the nine-month	For the nine-month	For the nine-month	For the nine-month	For the nine-month		For	the nine-month	the nine-month	the nine-month	the nine-month
										period ended						period ended
									September30,				2023			September30,2022
Cash dividends declared									$			13,334,455				$				12,821,591
Cash from capital surplus												512,864								1,025,727
Ending balance of other	payables
(shown in other payables)									(			13,847,319)			(					13,847,318)
Cash paid during the period									$					-		$				-
Changes in liabilities from financing					activities
																			Liabilities from
		Short-term		Guarantee					Lease		Long-term			Dividends						financing
		borrowings			deposits				liabilities		borrowings			payable						activities-total
At January 1, 2023	$		13,737,994	$		556	$		1,301,631		$	1,713,316		$			-		$	16,753,497
Changes in cash flow from
financing activities	(		7,351,914)	(		14)	(		85,341)			296,420					-	(		7,140,849)
Interest paid			-			-	(		24,531)				-				-	(		24,531)
Interest of lease liabilities			-			-			24,531				-				-			24,531
Impact of changes in
foreign exchange			-			-			20,607				-				-			20,607
Changes in other non-cash
items			-			-			344,223			1,398		13,847,319						14,192,940
At September 30, 2023	$		6,386,080	$		542	$		1,581,120		$	2,011,134		13,847,319 $					$	23,826,195
																		Liabilities from
		Short-term		Guarantee					Lease		Long-term			Dividends						financing
		borrowings			deposits			liabilities			borrowings			payable					activities-total
At January 1, 2022	$		13,342,100		$	1,448		$	1,332,705	1,002,799 $			$			-	$			15,679,052
Changes in cash flow from
financing activities	(		3,414,783)	(		184)	(		72,155)			537,050				-	(			2,950,072)
Interest paid			-			-	(		21,196)			-				-	(			21,196)
Interest of lease liabilities			-			-			21,196			-				-				21,196
Impact of changes in
foreign exchange			-			-			7,861			-				-				7,861
Changes in other non-cash
items			-			-			66,612	(		2,442)		13,847,318						13,911,488
At September 30, 2022	$		9,927,317		$	1,264		$	1,335,023	1,537,407 $			$	13,847,318			$			26,648,329

(31) Changes in liabilities from financing activities

7. RELATED PARTY TRANSACTIONS

(1) Parent and ultimate controlling party

The ultimate controlling party of the Group is the Company.

(2) Names of related parties and relationship

Names of related parties Relationship with the Group G.M.I Technology Inc. Other related party Actions Technology (HK) Company Limited Other related party C-Media Electronics Inc. Other related party Greatek Electronics Inc. Other related party EmBestor Technology Inc. Other related party Fortemedia Inc. Other related party

~42~

(3) Significant related party transactions and balances

A. Operating revenue

Operating revenue
	For	the three-month	For	the three-month
		period ended		period ended
	September30,2023		September30,2022
Sales of goods﹕
G.M.I Technology Inc.	$	3,283,012	$	4,466,143
Others		12,769		83,381
	$	3,295,781	$	4,549,524
	For the nine-month		For the nine-month
		period ended		period ended
	September 30, 2023		September 30, 2022
Sales of goods﹕
G.M.I Technology Inc.	$	8,716,279	$	13,049,250
Others		41,942		332,365
	$	8,758,221	$	13,381,615

Goods are sold based on the price lists in force and terms that would be available to third parties, and the general collection term was 30 ~ 60 days after monthly billings.

B. Processing cost

Processing cost
Greatek Electronics Inc. Others Greatek Electronics Inc. Others	For the three-month period ended September30,2023 382,085 $ 9,279 391,364 $ For the nine-month period ended September30,2023 898,577 $ 24,970 923,547 $	For the three-month period ended September30,2022 283,198 $ -
		283,198 $
		For the nine-month period ended September30,2022
		933,856 $ 10,528
		944,384 $

~43~

Processing cost is paid to related parties on normal commercial terms and conditions, and the general payment term was 69 days after monthly billings.

• C. Receivables from related parties

	September 30, 2023	September 30, 2023	December 31, 2022	December 31, 2022	September 30, 2022	September 30, 2022
Accounts receivable﹕
G.M.I Technology Inc.	$	2,531,599	$	2,548,128	$	3,797,708
Other		8,786		46,117		55,526
	$	2,540,385	$	2,594,245	$	3,853,234

Aforementioned receivables were 30 ~ 60 days after monthly billings. The receivables from related parties arise mainly from sale transactions. The receivables are unsecured in nature and bear no interest.

• D. Payables to related parties

Accounts payable﹕ Greatek Electronics Inc. Others	September30,2023 450,269 $ 10,506 460,775 $	December 31, 2022 September 30, 2022 156,225 $ 291,233 $ 71 - 156,296 $ 291,233 $

The payment term above was 69 days after monthly billings. The payables to related parties arise mainly from processing cost. The payables bear no interest.

E. Other transactions and other payables (receivables):

		For the nine-month period	For the nine-month period	For the nine-month period		For the nine-month period	For the nine-month period	For the nine-month period
	ended September			30,2023	ended September			30, 2022
				Ending				Ending
		Amount		balance		Amount		balance
Other related parties-
Sales commissions	$	366,280	$	100,015	$	563,220	$	139,948
Technical royalty revenue	($	1,020)	$	-	($	1,010)	$	-
Other	$	2,613	$	561	$	-	$	-

The payment term above was 49 days after monthly billings; the collection term was 30 ~ 60 days after monthly billings.

~44~

(4) Key management compensation

Key management compensation
Salaries and other short-term employee benefits Post-employment benefits Total Salaries and other short-term employee benefits Post-employment benefits Total	For the three-month period ended September30,2023 50,200 $ 1,088 51,288 $ For the nine-month period ended September30,2023 375,256 $ 3,099 378,355 $	For the three-month period ended September30,2022
		22,797 $ 1,005
		23,802 $
		For the nine-month period ended September30,2022
		229,442 $ 2,870
		232,312 $

8. PLEDGED ASSETS

The Group’s assets pledged as collateral are as follows:

Pledged asset Time deposits (shown in financial assets at amortised cost non-current) "	Bookvalue	September30,2022 31,048 $ 54,692 85,740 $	Purposes
	September30,2023 December31,2022 31,348 $ 31,348 $ 62,743 54,559 94,091 $ 85,907 $
			Guarantee for the importation customs duties of materials Guarantee for leasing land and office in science park

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACT COMMITMENTS

(1) Contingencies

• A. In 2020, DivX, LLC brought actions for patent infringement in United States International Trade Commission (“ITC”) and United States District Court of Delaware against the Company’s IC products. On July 4, 2021, DivX terminated the investigation against the Company in ITC. The case in the United States District Court of Delaware is still pending, and the Company is unable to reliably determine the outcome of the case.

• B. In 2020, KONINKLIJKE PHILIPS N.V. and PHILIPS NORTH AMERICA LLC brought actions for patent infringement in United States International Trade Commission (“ITC”) and United States District Court of Delaware against the Company’s IC products. On March 23, 2022, ITC issued the final determination finding non-infringement for the accused Company’s IC products and non-existence of the required domestic industry. The case in the United States District Court of Delaware is still pending, and the Company is unable to reliably determine the outcome of the case.

~45~

• C. BANDSPEED, LLC brought an action for patent infringement in United States District Court for the Western District of Texas against the Company’s IC products. The case is still pending, and the Company is unable to reliably determine the outcome of the case.

• D. In 2022, Advanced Micro Devices, Inc./ ATI Technologies ULC brought an action for patent infringement in United States International Trade Commission (“ITC”) and United States District Court for the Eastern District of Texas against the Company’s IC products. The initial determination issued by ITC Administrative Law Judge on July 7, 2023 is under review pursuant to the procedural schedule set by ITC. The review is still pending, and the Company is unable to reliably determine the outcome of the case.

• E. In 2022, ParkerVision, Inc. brought an action for patent infringement in United States District Court for the Western District of Texas against the Company’s IC products. The case is still pending, and the Company is unable to reliably determine the outcome of the case.

• F. In 2023, Monterey Research, LLC brought an action for patent infringement in the Tokyo District Court against the Company and its subsidiary, Realtek Semiconductor (Japan) Corp. The case is still pending, and the Company is unable to reliably determine the outcome of the case.

• G. In 2023, the Company filed a complaint in the Northern District of California against MediaTek Inc., Future Link Systems LLC, and IPValue Management (Future Link’s parent company) for violation of, including but not limited to, US anti-trust and unfair competition laws. The case is still pending, and the Company is unable to reliably determine the outcome of the case.

• H. In 2023, ParkerVision, Inc. brought another action for patent infringement in United States District Court for the Western District of Texas against the Company’s IC products. The case is still pending, and the Company is unable to reliably determine the outcome of the case.

(2) Commitments

The Company entered into a contract with the supplier. According to the contract, the supplier provided agreed production capacity to the Company after the Company paid the guarantee deposits. The abovementioned payment was shown in other non-current assets.

10. SIGNIFICANT DISASTER LOSS

None.

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

None.

12. OTHERS

(1) Capital management

There have been no significant changes as at September 30, 2023. Please refer to Note 12 in the consolidated financial statements for the year ended December 31, 2022.

~46~

(2) Financial instruments

A. Financial instruments by category

Financial assets Financial assets at fair value through profit or loss Financial assets mandatorily measured at fair value through profit or loss Financial assets at fair value through other comprehensive income Designation of equity instrument Financial assets at amortised cost/ Receivables Cash and cash equivalents Financial assets at amortised cost Accounts receivable (including related parties) Other receivables Refundable deposits Financial liabilities Financial liabilities at amortised cost Short-term borrowings Notes payable Accounts payable (including related parties) Other payables (including related parties) Long-term borrowings Guarantee deposits Other financial liabilities Lease liabilities	September30,2023 December31,2022 657,693 $ 1,921,432 $ 3,103,395 $ 3,099,759 $ 18,979,165 $ 13,754,035 $ 43,348,201 42,214,318 16,557,729 12,012,685 1,592,543 488,769 2,191,499 2,191,910 82,669,137 $ 70,661,717 $ 6,386,080 $ 13,737,994 $ - - 9,413,336 10,496,375 40,745,893 27,774,896 2,011,134 1,713,316 542 556 8,564,542 8,932,366 67,121,527 $ 62,655,503 $ 1,581,120 $ 1,301,631 $	September30,2022 1,930,423 $ 3,069,781 $ 8,325,957 $ 62,974,322 17,696,810 659,951 2,194,293 91,851,333 $ 9,927,317 $ 3,276 16,412,161 46,035,127 1,537,407 1,264 9,358,067 83,274,619 $ 1,335,023 $

• B. Financial risk management policies

• (a) The Group’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk, interest rate risk and price risk), credit risk and liquidity risk.

(b) Risk management is carried out by a Group finance under policies approved by the Board of Directors. Group finance identifies, evaluates, and hedges financial risks in close cooperation with the Group’s operating units.

~47~

• C. Significant financial risks and degrees of financial risks

• (a) Market risk

Foreign exchange risk

• i. The Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to USD and CNY. Foreign exchange risk arises from future commercial transactions, recognized assets, and liabilities.

• ii. Management has set up a policy to require the Group to manage its foreign exchange risk against its functional currency. The Group is required to hedge its entire foreign exchange risk exposure with the Group finance.

• iii. The Group’s businesses involve some functional currency operations (the Company’s and other certain subsidiaries’ functional currency: NTD ； other certain subsidiaries’ functional currency: USD and CNY). The information on assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations is as follows:

(Foreign currency: functional currency) Financial assets Monetary items USD:NTD Non-monetary items USD:NTD Financial liabilities Monetary items USD:NTD	September30,2023	September30,2023
	Foreign currency amount (Inthousands) 351,591 $ 1,959,199 379,297	Book value Exchangerate (NTD) 32.268 11,345,138 $ 32.268 63,219,433 32.268 12,239,156

~48~

		December31,2022	December31,2022
	Foreign currency
		amount			Book value
		(Inthousands)	Exchangerate		(NTD)
(Foreign currency:
functional currency)
Financial assets
Monetary items
USD:NTD	$	246,929	30.708	$	7,582,696
Non-monetary items
USD:NTD		1,881,393	30.708		57,773,816
Financial liabilities
Monetary items
USD:NTD		354,424	30.708		10,883,652
		September30,2022
	Foreign currency
		amount			Book value
		(In thousands)	Exchange rate		(NTD)
(Foreign currency:
functional currency)
Financial assets
Monetary items
USD:NTD	$	441,811	31.743	$	14,024,407
Non-monetary items
USD:NTD		1,905,601	31.743		60,489,493
Financial liabilities
Monetary items
USD:NTD		477,290	31.743		15,150,616
The exchange gains, including realized and unrealized arising from significant foreign
exchange variation on the monetary		items held by the	Group for the three-month and
nine-month periods ended September		30, 2023 and 2022, amounted to $19,755, $14,484,
$30,925 and $196,241, respectively.

~49~

Analysis of foreign currency market risk arising from significant foreign exchange variation:

variation:
Price risk (Foreign currency: functional currency) Financial assets Monetary items USD:NTD Non-monetary items USD:NTD Financial liabilities Monetary items USD:NTD (Foreign currency: functional currency) Financial assets Monetary items USD:NTD Non-monetary items USD:NTD Financial liabilities Monetary items USD:NTD	Effect on other Effect on comprehensive Degree ofvariation profit or loss income 1% 113,451 $ - $ 1% - 632,194 1% 122,392) ( - Sensitivity analysis Forthenine-monthperiod ended September30,2023 Forthenine-monthperiod ended September30,2022
	Sensitivity analysis
	Effect on Degree ofvariation profit or loss 1% 140,244 $ 1% - 1% 151,506) (	Effect on other comprehensive income
		- $ 604,895 -

i. The Group’s equity securities, which are exposed to price risk, are the held financial assets at fair value through profit or loss and financial assets at fair value through other comprehensive income.

~50~

• ii. The Group’s investments in equity securities comprise shares and open-end funds issued by the domestic and foreign companies. The prices of equity securities would change due to the change of the future value of investee companies. If the prices of these equity securities had increased/decreased by 10% with all other variables held constant, post-tax profit for the nine-month periods ended September 30, 2023 and 2022 would have increased/decreased by $65,769 and $193,042, respectively, as a result of gains/losses on equity securities classified as at fair value through profit or loss. Other components of equity would have increased/decreased by $310,340 and $306,978, respectively, as a result of gains/losses on equity securities classified as at fair value through other comprehensive income.

Cash flow and fair value interest rate risk

• i. The Group’s interest rate risk arises from bank time deposits, time deposits with maturity over three months and long-term and short-term borrowings with variable rates. Borrowings with variable rates expose the Group to cash flow interest rate risk which is partially offset by cash and cash equivalents held at variable rates. For the nine-month periods ended September 30, 2023 and 2022, the Group’s borrowings at variable rate were mainly denominated in New Taiwan dollars and US Dollars.

• ii. If the borrowing interest rate had increased/decreased by 0.25% with all other variables held constant, profit before tax for the nine-month periods ended September 30, 2023 and 2022 would have decreased/increased by $29,811 and $32,262, respectively. If the time deposits interest rate had increased/decreased by 0.25% with all other variables held constant, profit before tax for the nine-month periods ended September 30, 2023 and 2022 would have increased/decreased by $111,896 and $135,363, respectively. The main factor is that increase or decrease in interest expense and interest income result in floating-rate borrowings.

• (b) Credit risk

• i. Credit risk refers to the risk of financial loss to the Group arising from default by the clients or counterparties of financial instruments on the contract obligations. The main factor is that counterparties could not repay in full the accounts receivable based on the agreed terms, and the contract cash flows of financial assets at amortized cost.

• ii. The Group manages their credit risk taking into consideration the entire Group’s concern. According to the Group’s credit policy, each local entity in the Group is responsible for managing and analyzing the credit risk for each of their new clients before standard payment and delivery terms and conditions are offered. Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors.

• iii. The Group adopts the assumption under IFRS 9, that is, the default occurs when the contract payments are past due over 90 days.

~51~

• iv. The Group adopts the following assumption under IFRS 9 to assess whether there has been a significant increase in credit risk on that instrument since initial recognition: If the contract payments were past due over 30 days based on the terms, there has been a significant increase in credit risk on that instrument since initial recognition.

• v. The following indicators are used to determine whether the credit impairment of debt instruments has occurred:

• (i) It becomes probable that the issuer will enter bankruptcy or other financial reorganization due to their financial difficulties;

• (ii) The disappearance of an active market for that financial asset because of financial difficulties;

• (iii) Default or delinquency in interest or principal repayments;

• (iv) Adverse changes in national or regional economic conditions that are expected to cause a default.

• vi. The Group classifies customers’ accounts receivable in accordance with customer types. The Group applies the modified approach using provision matrix to estimate expected credit loss under the provision matrix basis.

• vii. The Group wrote-off the financial assets, which cannot be reasonably expected to be recovered, after initiating recourse procedures. However, the Group will continue executing the recourse procedures to secure their rights.

• viii. The Group used the forecast ability of semiconductor industry research report to adjust historical and timely information to assess the default possibility of accounts receivable. As at September 30, 2023, December 31, 2022 and September 30, 2022, the provision matrix are as follows:

matrix are as follows:
At September 30, 2023 Expected loss rate Total book value Loss allowance At December 31, 2022 Expected loss rate Total book value Loss allowance	Notpast due 0%~1% 16,286,919 $ 105,493 $ Not past due 0%~1% 12,034,050 $ 64,819 $	1~90 days past due 0%~1% 380,104 $ 3,801 $ 1~90 days past due 0%~1% 43,893 $ 439 $	Over 90 days past due 100% 37 $ 37 $ Over 90 days past due 100% 37 $ 37 $	Total
				16,667,060 $
				109,331 $
				Total
				12,077,980 $
				65,295 $

~52~

At September 30, 2022 Expected loss rate Total book value Loss allowance	Not past due 0%~1% 17,480,575 $ 105,216 $	1~90 days past due 0%~1% 324,698 $ 3,247 $	Over 90 days past due 100% 36 $ 36 $	Total 17,805,309 $
				108,499 $

• ix. Movements in relation to the Group applying the modified approach to provide loss allowance for accounts receivable are as follows:

allowance for accounts receivable are as follows:
At January 1 Provision for impairment loss At September 30 At January 1 Provision for impairment loss At September 30	2023
	Loss allowance for accounts receivable
	65,295 $ 44,036
	109,331 $
	2022
	Loss allowance for accounts receivable
	98,710 $ 9,789
	108,499 $

• x. For investments in debt instruments at amortised cost, the credit rating levels are presented below:

below:
Financial assets at amortised cost Group 1 Group 2				September 30, 2023
		12 months		Lifetime				Total
				Significant increase in creditrisk	Impairment ofcredit
		38,267,055 $ 5,081,146 43,348,201 $		- $ - - $		- $ - - $		38,267,055 $ 5,081,146
								43,348,201 $

~53~

December 31, 2022 Lifetime Significant increase in Impairment 12 months credit risk of credit Total Financial assets at amortised cost - - Group 1 $ 41,681,744 $ $ $ 41,681,744 - - Group 2 532,574 532,574 $ 42,214,318 $ - $ - $ 42,214,318 September 30, 2022 Lifetime Significant increase in Impairment 12 months credit risk of credit Total Financial assets at amortised cost Group 1 $ 62,947,322 $ - $ - $ 62,947,322

• Group 1: Time deposits with original maturity over three months deposited in financial institutions having good credit quality.

Group 2: Standard Poor’s, Fitch’s, or Moody’s rating of A-level.

• (c) Liquidity risk

• i. Cash flow forecasting is performed in the operating entities of the Group and aggregated by Group finance. Group finance monitors forecasts of the Group’s liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities.

• ii. Group finance invests surplus cash in interest bearing current accounts, time deposits, money market deposits and marketable securities, choosing instruments with appropriate maturities or sufficient liquidity to provide sufficient headroom as determined by the above-mentioned forecasts.

~54~

• iii. The table below analyses the Group’s non-derivative financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date for non-derivative financial liabilities. The amounts disclosed in the table are the contractual undiscounted cash flows.

Non-derivative financial liabilities:

Non-derivative financial liabilities:
September 30, 2023 Short-term borrowings Accounts payable (including related parties) Other payables (including related parties) Lease liabilities Long-term borrowings Guarantee deposits Other financial liabilities Non-derivative financial liabilities: December 31, 2022 Short-term borrowings Accounts payable (including related parties) Other payables (including related parties) Lease liabilities Long-term borrowings Guarantee deposits Other financial liabilities Non-derivative financial liabilities: September 30, 2022 Short-term borrowings Notes payable Accounts payable (including related parties) Other payables (including related parties) Lease liabilities Long-term borrowings Guarantee deposits Other financial liabilities	Less than 1 year 6,386,080 $ 9,413,336 40,745,893 143,614 - - 8,564,542 Less than 1 year 13,737,994 $ 10,496,375 27,774,896 120,508 - - 8,932,366 Less than 1 year 9,927,317 $ 3,276 16,412,161 46,035,127 129,370 - - 9,358,067	Between 1 and 5 years - $ - - 316,481 2,011,134 - - Between 1 and 5 years - $ - - 307,758 1,728,470 - - Between 1 and 5 years - $ - - - 332,990 1,537,407 - -	Over5 years
			- $ - - 1,638,872 - 542 - Over5 years
			- $ - - 1,305,338 - 556 - Over5 years
			- $ - - - 1,318,685 - 1,264 -

iv. The Group does not expect the timing of occurrence of the cash flows estimated through the maturity date analysis will be significantly earlier, nor expect the actual cash flow amount will be significantly different.

~55~

(3) Fair value information

• A. The different levels that the inputs to valuation techniques are used to measure fair value of financial and non-financial instruments have been defined as follows:

• Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. A market is regarded as active where a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. The fair value of the Group’s investment in listed stocks and beneficiary certificates is included in Level 1.

• Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

• Level 3: Unobservable inputs for the asset or liability. The fair value of the Group’s investment in equity investment without active market is included in Level 3.

• B. Fair value information of investment property at cost is provided in Note 6(10).

• C. The related information of financial and non-financial instruments measured at fair value by level on the basis of the nature, characteristics and risks of the assets is as follows:

• (a) The related information of nature of the assets is as follows:

September 30, 2023 Assets Recurring fair value measurement Financial assets at fair value through profit or loss Equity securities Hybrid instrument Financial assets at fair value through other comprehensive income Equity securities Total	Level 1 604,693 $ - 699,059 1,303,752 $	Level 2 - $ - - - $	Level3 - $ 53,000 2,404,336 2,457,336 $	Total
				604,693 $ 53,000 3,103,395
				3,761,088 $

~56~

December 31, 2022 Assets Recurring fair value measurement Financial assets at fair value through profit or loss Equity securities Hybrid instrument Financial assets at fair value through other comprehensive income Equity securities Total September 30, 2022 Assets Recurring fair value measurement Financial assets at fair value through profit or loss Equity securities Financial assets at fair value through other comprehensive income Equity securities Total	Level 1 1,868,432 $ - 747,198 2,615,630 $ Level 1 1,930,423 $ 589,588 2,520,011 $	Level 2 - $ - - - $ Level 2 - $ - - $	Level3 - $ 53,000 2,352,561 2,405,561 $ Level3 - $ 2,480,193 2,480,193 $	Total
				1,868,432 $ 53,000 3,099,759
				5,021,191 $
				Total
				1,930,423 $ 3,069,781
				5,000,204 $

• (b) The methods and assumptions the Group used to measure fair value are as follows:

• i. The instruments the Group used market quoted prices as their fair values (that is, Level

  • 1) are listed below by characteristics:

Market quoted price	Listed shares	Closed- end fund	Open- end fund	Government bond Corporate bond Translation price Weighted average quoted price	Convertible (exchangeable) bond
	Closing price	Closing price	Net asset value		Closing price

• ii. Except for financial instruments with active markets, the fair value of other financial instruments is measured by using valuation techniques. The fair value of financial instruments measured by using valuation techniques can be referred to current fair value of instruments with similar terms and characteristics in substance, discounted cash flow method or other valuation methods, including calculated by applying model using market information available at the consolidated balance sheet date.

~57~

• iii. The output of valuation model is an estimated value and the valuation technique may not be able to capture all relevant factors of the Group’s financial and non-financial instruments. Therefore, the estimated value derived using valuation model is adjusted accordingly with additional inputs.

• D. For the nine-month periods ended September 30, 2023 and 2022, there was no transfer between Level 1 and Level 2.

• E. The following chart is the movement of Level 3 for the nine-month periods ended September 30, 2023 and 2022:

30, 2023 and 2022:
			2023		2022
			Non-derivative		Non-derivative
			equityinstrument		equity instrument
At January 1		$	2,405,561		2,820,372 $
Losses recognized in other
comprehensive loss	(		18,921)	(	340,179)
Acquisition during the period			70,696		-
At September 30		$	2,457,336		2,480,193 $

• F. For the nine-month periods ended September 30, 2023 and 2022, there was no transfer into or out from Level 3.

• G. The finance division is in charge of valuation procedures for fair value measurements being categorized within Level 3, which is to verify independent fair value of financial instruments. Such assessment is to ensure the valuation results are reasonable by applying independent information to make results close to current market conditions, confirming the resource of information is independent, reliable and in line with other resources and represented as the exercisable price, updating inputs used to the valuation model and making any other necessary adjustments to the fair value.

~58~

• H. The following is the qualitative information of significant unobservable inputs and sensitivity analysis of changes in significant unobservable inputs to valuation model used in Level 3 fair value measurement:

Non-derivative equity instrument: Unlisted shares 〃 Private equity fund investment Hybrid instrument Convertible notes Non-derivative equity instrument: Unlisted shares 〃 Private equity fund investment Hybrid instrument Convertible notes	Fair value at September 30, 2023	Valuation technique	Significant unobservable input	Range (weighted average)	Relationship of inputs tofairvalue
	124,847 $ 116,561 2,162,928 53,000 Fair value at December 31, 2022	Market comparable companies Net asset value Net asset value Binomial model Valuation technique	Price to book ratio multiple Not applicable Not applicable Not applicable Significant unobservable input	3.53 - - - Range (weighted average)	The higher the multiple, the higher the fair value Not applicable Not applicable Not applicable Relationship of inputs tofairvalue
	118,812 $ 40,408 2,193,341 53,000	Market comparable companies Net asset value Net asset value Binomial model	Price to book ratio multiple Not applicable Not applicable Not applicable	3.18 - - -	The higher the multiple, the higher the fair value Not applicable Not applicable Not applicable

~59~

Fair value at Significant Range September 30, Valuation unobservable (weighted Relationship of 2022 technique input average) inputs to fair value Non-derivative equity instrument: Unlisted $ 122,816 Market Price to book 3.12 The higher the shares comparable ratio multiple multiple, the higher companies the fair value 〃 38,481 Net asset Not applicable - Not applicable value Private equity 2,318,896 Net asset Not applicable - Not applicable fund investment value

13. SUPPLEMENTARY DISCLOSURES

(1) Significant transactions information

• A. Loans to others: Please refer to table 1.

• B. Provision of endorsements and guarantees to others: Please refer to table 2.

• C. Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures): Please refer to table 3.

• D. Acquisition or sale of the same security with the accumulated cost exceeding $300 million or 20% of the Company’s paid-in capital: None.

• E. Acquisition of real estate reaching $300 million or 20% of paid-in capital or more: None.

• F. Disposal of real estate reaching $300 million or 20% of paid-in capital or more: None.

• G. Purchases or sales of goods from or to related parties reaching $100 million or 20% of paidin capital or more: Please refer to table 4.

• H. Receivables from related parties reaching $100 million or 20% of paid-in capital or more: Please refer to table 5.

• I. Trading in derivative instruments undertaken during the reporting periods: None.

• J. Significant inter-company transactions during the reporting periods: Please refer to table 6.

• (2) Information on investees

Names, locations, and other information of investee companies (not including investees in Mainland China): Please refer to table 7.

(3) Information on investments in Mainland China

• A. Basic information: Please refer to table 8.

• B. Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland Area: Please refer to tables 1, 2 and 6.

(4) Major shareholders information

• As at September 30, 2023, the Company had no shareholders who hold over 5% (including 5%) of the Company’s shares.

~60~

14. SEGMENT INFORMATION

(1) General information

• The Group operates business only in a single industry. The Chief Operating Decision-Maker, who allocates resources and assesses performance of the Group as a whole, has identified that the Group has only one reportable operating segment.

• (2) Measurement of segment information

The Chief Operating Decision-Maker assesses the performance of the operating segments based on the consolidated financial statements. The accounting policy of operating segments is the same as that described in Note 4.

(3) Information on segment profit (loss), assets and liabilities

• The revenue from external customers and segment financial information reported to the Chief Operating Decision-Maker is measured in a manner consistent with that in the consolidated statement of comprehensive income.

(4) Reconciliation for segment profit (loss)

The segment assets, liabilities and profit before income tax reported to the Chief Operating Decision-Maker is measured in a manner consistent with that in the consolidated balance sheet and consolidated statement of comprehensive income. As a result, no reconciliation was reported.

~61~

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

Loans to others

Table 1

Expressed in thousands of NTD (Except as otherwise indicated)

For the nine-month period ended September 30, 2023

Maximum outstanding balance during the nine- month period ended September 30, 2023 (Note 3) Balance at September 30,2023 Actual amount drawn down (Note 4) No (Note 1) Creditor Borrower General ledger account Is a related party Interest rate(%) Nature of loan Amount of transactions with the borrower Reason for short- term financing Allowance for doubtful accounts	Maximum outstanding balance during the nine- month period ended September 30, 2023 (Note 3) Balance at September 30,2023 Actual amount drawn down (Note 4) No (Note 1) Creditor Borrower General ledger account Is a related party Interest rate(%) Nature of loan Amount of transactions with the borrower Reason for short- term financing Allowance for doubtful accounts	Maximum outstanding balance during the nine- month period ended September 30, 2023 (Note 3) Balance at September 30,2023 Actual amount drawn down (Note 4) No (Note 1) Creditor Borrower General ledger account Is a related party Interest rate(%) Nature of loan Amount of transactions with the borrower Reason for short- term financing Allowance for doubtful accounts	Maximum outstanding balance during the nine- month period ended September 30, 2023 (Note 3) Balance at September 30,2023 Actual amount drawn down (Note 4) No (Note 1) Creditor Borrower General ledger account Is a related party Interest rate(%) Nature of loan Amount of transactions with the borrower Reason for short- term financing Allowance for doubtful accounts	Maximum outstanding balance during the nine- month period ended September 30, 2023 (Note 3) Balance at September 30,2023 Actual amount drawn down (Note 4) No (Note 1) Creditor Borrower General ledger account Is a related party Interest rate(%) Nature of loan Amount of transactions with the borrower Reason for short- term financing Allowance for doubtful accounts	Maximum outstanding balance during the nine- month period ended September 30, 2023 (Note 3) Balance at September 30,2023 Actual amount drawn down (Note 4) No (Note 1) Creditor Borrower General ledger account Is a related party Interest rate(%) Nature of loan Amount of transactions with the borrower Reason for short- term financing Allowance for doubtful accounts	Maximum outstanding balance during the nine- month period ended September 30, 2023 (Note 3) Balance at September 30,2023 Actual amount drawn down (Note 4) No (Note 1) Creditor Borrower General ledger account Is a related party Interest rate(%) Nature of loan Amount of transactions with the borrower Reason for short- term financing Allowance for doubtful accounts	Maximum outstanding balance during the nine- month period ended September 30, 2023 (Note 3) Balance at September 30,2023 Actual amount drawn down (Note 4) No (Note 1) Creditor Borrower General ledger account Is a related party Interest rate(%) Nature of loan Amount of transactions with the borrower Reason for short- term financing Allowance for doubtful accounts	Maximum outstanding balance during the nine- month period ended September 30, 2023 (Note 3) Balance at September 30,2023 Actual amount drawn down (Note 4) No (Note 1) Creditor Borrower General ledger account Is a related party Interest rate(%) Nature of loan Amount of transactions with the borrower Reason for short- term financing Allowance for doubtful accounts	Maximum outstanding balance during the nine- month period ended September 30, 2023 (Note 3) Balance at September 30,2023 Actual amount drawn down (Note 4) No (Note 1) Creditor Borrower General ledger account Is a related party Interest rate(%) Nature of loan Amount of transactions with the borrower Reason for short- term financing Allowance for doubtful accounts	Maximum outstanding balance during the nine- month period ended September 30, 2023 (Note 3) Balance at September 30,2023 Actual amount drawn down (Note 4) No (Note 1) Creditor Borrower General ledger account Is a related party Interest rate(%) Nature of loan Amount of transactions with the borrower Reason for short- term financing Allowance for doubtful accounts	Maximum outstanding balance during the nine- month period ended September 30, 2023 (Note 3) Balance at September 30,2023 Actual amount drawn down (Note 4) No (Note 1) Creditor Borrower General ledger account Is a related party Interest rate(%) Nature of loan Amount of transactions with the borrower Reason for short- term financing Allowance for doubtful accounts	Maximum outstanding balance during the nine- month period ended September 30, 2023 (Note 3) Balance at September 30,2023 Actual amount drawn down (Note 4) No (Note 1) Creditor Borrower General ledger account Is a related party Interest rate(%) Nature of loan Amount of transactions with the borrower Reason for short- term financing Allowance for doubtful accounts	Collateral	Collateral	Limit on loans granted to a singleparty	Ceiling on total loans granted (Note 2)	Footnote
													Item Value
0	Realtek Semiconductor Corporation	Hung-wei Venture Capital Co., Ltd.	Other receivables-related parties	Y	100,000 $	100,000	66,000 $	1.80	Short-term financing	- $	Operations	- $	None	- $	4,246,898 $	16,987,590	None
0	Realtek Semiconductor Corporation	RayMX Microelectronics Corp.	Other receivables-related parties	Y	64,536	64,536	-	-	Short-term financing	-	Operations	-	None	-	4,246,898	16,987,590	None
0	Realtek Semiconductor Corporation	Bluocean Inc.	Other receivables-related parties	Y	3,226,800	3,226,800	3,213,893	5.83	Short-term financing	-	Operations	-	None	-	4,246,898	16,987,590	None
0	Realtek Semiconductor Corporation	Leading Enterprises Limited	Other receivables-related parties	Y	3,226,800	3,226,800	193,608	5.83	Short-term financing	-	Operations	-	None	-	4,246,898	16,987,590	None
0	Realtek Semiconductor Corporation	Amber Universal Inc.	Other receivables-related parties	Y	968,040	968,040	196,835	5.83	Short-term financing	-	Operations	-	None	-	4,246,898	16,987,590	None
1	Leading Enterprises Limited	Talent Eagle Enterprise Inc.	Other receivables-related parties	Y	1,936,080	1,936,080	-	-	Short-term financing	-	Operations	-	None	-	16,987,590	16,987,590	None
2	Amber Universal Inc.	Blueocean Inc.	Other receivables-related parties	Y	1,613,400	1,613,400	-	-	Short-term financing	-	Operations	-	None	-	16,987,590	16,987,590	None
2	Amber Universal Inc.	Talent Eagle Enterprise Inc.	Other receivables-related parties	Y	3,226,800	3,226,800	-	-	Short-term financing	-	Operations	-	None	-	16,987,590	16,987,590	None
3	Cortina Access, Inc.	Leading Enterprises Limited	Other receivables-related parties	Y	968,040	968,040	871,236	4.50	Short-term financing	-	Operations	-	None	-	16,987,590	16,987,590	None
4	Realtek Singapore Private Limited	Leading Enterprises Limited	Other receivables-related parties	Y	3,226,800	3,226,800	3,149,357	5.83	Short-term financing	-	Operations	-	None	-	16,987,590	16,987,590	None
4	Realtek Singapore Private Limited	RayMX Microelectronics Corp.	Other receivables-related parties	Y	64,536	64,536	-	-	Short-term financing	-	Operations	-	None	-	16,987,590	16,987,590	None
4	Realtek Singapore Private Limited	Realsil Microelectronics (Suzhou) Co.,LTD	Other receivables-related parties	Y	968,040	968,040	-	-	Short-term financing	-	Operations	-	None	-	16,987,590	16,987,590	None
4	Realtek Singapore Private Limited	Bluocean Inc.	Other receivables-related parties	Y	3,226,800	3,226,800	-	-	Short-term financing	-	Operations	-	None	-	16,987,590	16,987,590	None
4	Realtek Singapore Private Limited	Talent Eagle Enterprise Inc.	Other receivables-related parties	Y	3,226,800	3,226,800	193,608	5.83	Short-term financing	-	Operations	-	None	-	16,987,590	16,987,590	None
5	Realsil Microelectronics (Suzhou) Co.,LTD	Suzhou Pankore Integrated Circuit Technology Co. Ltd	Other receivables-related parties	Y	353,612	353,612	148,738	4.35	Short-term financing	-	Operations	-	None	-	16,987,590	16,987,590	None

Table 1 Page 1

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

Loans to others

Table 1

Expressed in thousands of NTD (Except as otherwise indicated)

For the nine-month period ended September 30, 2023

Maximum outstanding balance during the nine- month period ended September 30, 2023 (Note 3) Balance at September 30,2023 Actual amount drawn down (Note 4) No (Note 1) Creditor Borrower General ledger account Is a related party Interest rate(%) Nature of loan Amount of transactions with the borrower Reason for short- term financing Allowance for doubtful accounts	Maximum outstanding balance during the nine- month period ended September 30, 2023 (Note 3) Balance at September 30,2023 Actual amount drawn down (Note 4) No (Note 1) Creditor Borrower General ledger account Is a related party Interest rate(%) Nature of loan Amount of transactions with the borrower Reason for short- term financing Allowance for doubtful accounts	Maximum outstanding balance during the nine- month period ended September 30, 2023 (Note 3) Balance at September 30,2023 Actual amount drawn down (Note 4) No (Note 1) Creditor Borrower General ledger account Is a related party Interest rate(%) Nature of loan Amount of transactions with the borrower Reason for short- term financing Allowance for doubtful accounts	Maximum outstanding balance during the nine- month period ended September 30, 2023 (Note 3) Balance at September 30,2023 Actual amount drawn down (Note 4) No (Note 1) Creditor Borrower General ledger account Is a related party Interest rate(%) Nature of loan Amount of transactions with the borrower Reason for short- term financing Allowance for doubtful accounts	Maximum outstanding balance during the nine- month period ended September 30, 2023 (Note 3) Balance at September 30,2023 Actual amount drawn down (Note 4) No (Note 1) Creditor Borrower General ledger account Is a related party Interest rate(%) Nature of loan Amount of transactions with the borrower Reason for short- term financing Allowance for doubtful accounts	Maximum outstanding balance during the nine- month period ended September 30, 2023 (Note 3) Balance at September 30,2023 Actual amount drawn down (Note 4) No (Note 1) Creditor Borrower General ledger account Is a related party Interest rate(%) Nature of loan Amount of transactions with the borrower Reason for short- term financing Allowance for doubtful accounts	Maximum outstanding balance during the nine- month period ended September 30, 2023 (Note 3) Balance at September 30,2023 Actual amount drawn down (Note 4) No (Note 1) Creditor Borrower General ledger account Is a related party Interest rate(%) Nature of loan Amount of transactions with the borrower Reason for short- term financing Allowance for doubtful accounts	Maximum outstanding balance during the nine- month period ended September 30, 2023 (Note 3) Balance at September 30,2023 Actual amount drawn down (Note 4) No (Note 1) Creditor Borrower General ledger account Is a related party Interest rate(%) Nature of loan Amount of transactions with the borrower Reason for short- term financing Allowance for doubtful accounts	Maximum outstanding balance during the nine- month period ended September 30, 2023 (Note 3) Balance at September 30,2023 Actual amount drawn down (Note 4) No (Note 1) Creditor Borrower General ledger account Is a related party Interest rate(%) Nature of loan Amount of transactions with the borrower Reason for short- term financing Allowance for doubtful accounts	Maximum outstanding balance during the nine- month period ended September 30, 2023 (Note 3) Balance at September 30,2023 Actual amount drawn down (Note 4) No (Note 1) Creditor Borrower General ledger account Is a related party Interest rate(%) Nature of loan Amount of transactions with the borrower Reason for short- term financing Allowance for doubtful accounts	Maximum outstanding balance during the nine- month period ended September 30, 2023 (Note 3) Balance at September 30,2023 Actual amount drawn down (Note 4) No (Note 1) Creditor Borrower General ledger account Is a related party Interest rate(%) Nature of loan Amount of transactions with the borrower Reason for short- term financing Allowance for doubtful accounts	Maximum outstanding balance during the nine- month period ended September 30, 2023 (Note 3) Balance at September 30,2023 Actual amount drawn down (Note 4) No (Note 1) Creditor Borrower General ledger account Is a related party Interest rate(%) Nature of loan Amount of transactions with the borrower Reason for short- term financing Allowance for doubtful accounts	Maximum outstanding balance during the nine- month period ended September 30, 2023 (Note 3) Balance at September 30,2023 Actual amount drawn down (Note 4) No (Note 1) Creditor Borrower General ledger account Is a related party Interest rate(%) Nature of loan Amount of transactions with the borrower Reason for short- term financing Allowance for doubtful accounts	Collateral	Collateral	Limit on loans granted to a singleparty	Ceiling on total loans granted (Note 2)	Footnote
													Item Value
5	Realsil Microelectronics (Suzhou) Co.,LTD	RayMX Microelectronics Corp.	Other receivables-related parties	Y	353,612 $	353,612 $	- $	-	Short-term financing	- $	Operations	- $	None	- $	16,987,590 $	16,987,590 $	None
6	Cortina Network Systems (Shanghai) Co., Ltd.	Suzhou Pankore Integrated Circuit Technology Co. Ltd	Other receivables-related parties	Y	132,605	132,605	-	-	Short-term financing	-	Operations	-	None	-	16,987,590	16,987,590	None
7	Realtek Investment Singapore Private Limited	Leading Enterprises Limited	Other receivables-related parties	N	3,226,800	3,226,800	3,197,436	5.83	Short-term financing	-	Operations	-	None	-	16,987,590	16,987,590	None
7	Realtek Investment Singapore Private Limited	Realtek Singapore Private Limited	Other receivables-related parties	N	3,226,800	3,226,800	3,129,996	5.83	Short-term financing	-	Operations	-	None	-	16,987,590	16,987,590	None

Note 1: The numbers filled in for the loans provided by the Company or subsidiaries are as follows:

(1) The Company is ‘0’.

(2) The subsidiaries are numbered in order starting from ‘1’.

Note 2: The Company’s “Procedures for Provision of Loans” are as follows:

(1) Ceiling on total loans granted by the Company to all parties is 40% of the Company’s net assets value as per its most recent financial statements.

(2) Limit on loans to a single party with business transactions is the business transactions occurred between the creditor and borrower in the current year. The business transaction amount is the higher of purchasing and selling during current year on the year of financing.

(3) For companies needing for short-term financing, the cumulative lending amount may not exceed 40% of the borrowing company’s net assets based on its latest financial statements audited or reviewed by independent auditors.

The amount the Company or its subsidiaries lend to an individual entity may not exceed 10% of the Company’s or subsidiary’s net assets based on its latest financial statements audited or reviewed by independent auditors.

For the foreign companies which the Company holds 100% of the voting rights directly or indirectly, limit on loans is not restricted as stipulated in the above item (3). However, the ceiling on total loans and limit on loans to a single party may not exceed 40% of the Company’s net assets based on its latest financial statements audited or reviewed by independent auditors.

Note 3: Acccumulated maximum outstandings balance of loans to others as at the reporting month of the current period.

Note 4: Fill in the actual amount of loans to others used by the borrowing company.

Table 1 Page 2

Table 2

Expressed in thousands of NTD

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

Provision of endorsements and guarantees to others For the nine-month period ended September 30, 2023

(Except as otherwise indicated)

Party being

endorsed/guaranteed

		Party being endorsed/guaranteed	Party being endorsed/guaranteed
Number (Note 1) Endorser/ guarantor		Companyname Relationship with the endorser/ guarantor (Note2)		Limited on endorsements/ guarantees provided for a single party (Note 3)	Maximum outstanding endorsement/ amount as at September 30, 2023 (Note 4)	Outstanding endorsement/ guarantee amount at September 30, 2023 (Note 5)	Actual amont drawn down (Note 6)	Amount of endorsements/gurante es secured with collateral	Ratio of accumulated endorsement/ guarantee amount to net asset value of the endorser/ guarantor company	Ceiling on total amount of endorsements/ guarantees provided (Note 3)	Provision of endorsements/ guarantees by parent company to subsidiary (Note 7)	Provision of endorsements/ guarantees by subsidiary to parent company (Note 7)	Provision of endorsements/ guarantees to the party in Mainland China (Note 7)	Footnote
0	Realtek Semiconductor Corporation	Realtek Singapore Private Limited	2	21,234,488 $	2,212,643 $	2,212,643 $	- $	- $	5.21%	21,234,488 $	Y	N	N
0	Realtek Semiconductor Corporation	Leading Enterprises Limited	2	21,234,488	5,495,063	5,495,063	-	-	12.94%	21,234,488	Y	N	N
0	Realtek Semiconductor Corporation	Realsil Microelectronics (Suzhou) Co.,LTD	2	21,234,488	798,918	798,918	-	-	1.88%	21,234,488	Y	N	Y
0	Realtek Semiconductor Corporation	RayMX Microelectronics Corp.	2	21,234,488	663,793	663,793	2,732	-	1.56%	21,234,488	Y	N	Y
0	Realtek Semiconductor Corporation	AICONNX Technology Corp.	2	21,234,488	778,853	778,853	-	-	1.83%	21,234,488	Y	N	N
1	Leading Enterprises Limited	Realsil Microelectronics (Suzhou) Co.,LTD	2	21,234,488	645,360	645,360	-	-	1.52%	21,234,488	N	N	Y
2	Realsil Microelectronics (Suzhou) Co.,LTD	RayMX Microelectronics Corp.	2	21,234,488	645,360	645,360	-	-	1.52%	21,234,488	N	N	Y

Note 1: The numbers filled in for the endorsements/guarantees provided by the Company or subsidiaries are as follows:

(1)The Company is ‘0’.

(2)The subsidiaries are numbered in order starting from ‘1’.

Note 2: Relationship between the endorser/guarantor and the party being endorsed/guaranteed is classified into the following seven categories:

(1) Having business relationship.

• (2) The endorser/guarantor parent company owns directly and indirectly more than 50% voting shares of the endorsed/guaranteed subsidiary.

• (3) The endorser/guarantor company owns directly and indirectly more than 50% voting shares of the endorser/guarantor parent company.

• (4) The endorser/guarantor parent company owns directly or indirectly owns more than 50% voting shares of the endorsed/guaranteed subsidiary.

• (5) Mutual guarantee of the trade as required by the construction contract.

• (6) Due to joint venture, each shareholder provides endorsements/guarantees to the endorsed/guaranteed company in proportion to its ownership.

• (7) Joint guarantee of the performance guarantee for pre-sold home sales contract as required under the Consumer Protection Act.

Note 3: Ceiling on total endorsements/guarantees granted by the Company and subsidiaries is 50% of the Company’s net asset based on the latest financial statements audited or reviewed by independent auditors, and limit on endorsements/guarantees to a single party is 50% of the Company's net asset based on the latest financial statements audited or reviewed by independent auditors.

Note 4: Fill in the year-to-date maximum outstanding balance of endorsements/guarantees provided as at the reporting period.

Note 5: Fill in the amount approved by the Board of Directors or the chairman has been authorised by the Board of Directors based on subparagraph 8, Article 12 of the Regulations Gorverning Loaning of Funds and Making of Endorsements/Guarantees by Public Companies.

Note 6: Fill in the actual amount of endorsements/guarantees used by the endorsed/guaranteed company.

Note 7: Fill in ‘Y’ for those cases of provision of endorsements/guarantees by listed parent company to subsidiary and provision by subsidiary to listed parent company, and provision to the party in Mainland China.

Table 2

Table 3

Expressed in thousands of NTD

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures)

September 30, 2023

(Except as otherwise indicated)

Securities held by Marketable securities （Note 1） Relationship with the securities issuer(Note 2) General ledger account	Securities held by Marketable securities （Note 1） Relationship with the securities issuer(Note 2) General ledger account	Securities held by Marketable securities （Note 1） Relationship with the securities issuer(Note 2) General ledger account	Securities held by Marketable securities （Note 1） Relationship with the securities issuer(Note 2) General ledger account		As at September 30,2023	As at September 30,2023	As at September 30,2023	Footnote (Note 4)
				Number of shares	Book value (Note 3)	Ownership (%) Fair value
Realtek Semiconductor Corporation	C-media Electronics Inc. - Common stock	Other related parties	Financial assets at fair value through profit or loss	1,278,501	$ 48,136	1.63%	$ 48,136
Realtek Semiconductor Corporation	Nuheara Ltd - Convertible notes	Other related parties	Financial assets at fair value through profit or loss	-	53,000	-	53,000
Realtek Semiconductor Corporation	Nuheara Ltd - Common stock	Other related parties	Financial assets at fair value through other comprehensive income	26,544,086	84,556	13.05%	84,556
Realtek Semiconductor Corporation	GT Booster Corp.-Preferred stock	Other related parties	Financial assets at fair value through other comprehensive income	63,158	64,536	8.00%	64,536
Realtek Semiconductor Corporation	Golden Smart Home Technology Corp.- Common stock	None	Financial assets at fair value through other comprehensive income	1,700,000	10,318	2.75%	10,318
Realking Investment Co., Ltd.	Compal broadband networks Inc. - Common stock	Other related parties	Financial assets at fair value through other comprehensive income	3,575,000	99,206	5.29%	99,206
Realsun Investment Co., Ltd.	Shieh-Yong Investment Co., Ltd. - Common stock	None	Financial assets at fair value through other comprehensive income	65,013,874	595,525	3.03%	595,525
Realsun Investment Co., Ltd.	Compal broadband networks Inc. - Common stock	Other related parties	Financial assets at fair value through other comprehensive income	3,575,000	99,206	5.29%	99,206
Leading Enterprises Limited	Fortemedia Inc. - Common stock	Other related parties	Financial assets at fair value through other comprehensive income	8,873,301	105,486	6.61%	105,486
Leading Enterprises Limited	Starix Technology, Inc.-Preferred stock	None	Financial assets at fair value through other comprehensive income	5,000,000	19,361	-	19,361
Leading Enterprises Limited	Octtasia Investment Holding Inc. - Common stock	None	Financial assets at fair value through other comprehensive income	9,000,000	1,027,668	12.49%	1,027,668
Leading Enterprises Limited	Apple Inc. - Corporate bond	None	Financial assets at amortized cost	-	2,059,302	-	2,059,302
Leading Enterprises Limited	Qualcomm Inc. - Corporate bond	None	Financial assets at amortized cost	-	529,602	-	529,602
Leading Enterprises Limited	Microsoft Corp. - Corporate bond	None	Financial assets at amortized cost	-	273,403	-	273,403
Amber Universal Inc.	Octtasia Investment Holding Inc. - Common stock	None	Financial assets at fair value through other comprehensive income	4,726,836	539,735	6.56%	539,735
Hung-wei Venture Capital Co., Ltd.	United Microelectronics Corporation - Common stock	None	Financial assets at fair value through other comprehensive income	336,346	15,203	-	15,203
Hung-wei Venture Capital Co., Ltd.	C-media Electronics Inc.- Common stock	Other related parties	Financial assets at fair value through profit or loss	2,274,875	85,649	2.89%	85,649
Hung-wei Venture Capital Co., Ltd.	Greatek Electroninc Inc. - Common stock	Other related parties	Financial assets at fair value through other comprehensive income	5,823,602	322,628	1.02%	322,628
Hung-wei Venture Capital Co., Ltd.	Unimicron Technology Corp.	None	Financial assets at fair value through other comprehensive income	239,578	41,567	0.02%	41,567
Hung-wei Venture Capital Co., Ltd.	Embestor Technology Inc. - Common stock	Other related parties	Financial assets at fair value through other comprehensive income	2,800,000	41,707	10.77%	41,707
Blueocean Inc.	CyWeeMotion Group Limited	None	Financial assets at fair value through other comprehensive income	8,422,256	-	7.01%	-

Table 3 Page 1

Expressed in thousands of NTD

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures)

September 30, 2023

Table 3

(Except as otherwise indicated)

Securities held by Marketable securities （Note 1） Relationship with the securities issuer(Note 2) General ledger account	Securities held by Marketable securities （Note 1） Relationship with the securities issuer(Note 2) General ledger account	Securities held by Marketable securities （Note 1） Relationship with the securities issuer(Note 2) General ledger account	Securities held by Marketable securities （Note 1） Relationship with the securities issuer(Note 2) General ledger account		As at September 30,2023	As at September 30,2023	As at September 30,2023	Footnote (Note 4)
				Number of shares	Book value (Note 3)	Ownership (%) Fair value
Blueocean Inc.	Eargo, Inc. - Common stock	None	Financial assets at fair value through other comprehensive income	419,163	$ 29,364	2.02%	$ 29,364
Blueocean Inc.	Apple Inc. - Corporate bond	None	Financial assets at amortized cost	-	2,218,839	-	2,218,839
Talent Eagle Enterprise Inc.	Eargo, Inc. - Common stock	None	Financial assets at fair value through other comprehensive income	104,625	7,329	0.50%	7,329
Realsil Microelectronics (Suzhou) Co.,LTD	Cuam Money Fund	None	Financial assets at fair value through profit or loss	346,336	1,531	-	1,531
Realsil Microelectronics (Suzhou) Co.,LTD	Guang-Fa Demand Policy Loan Fund	None	Financial assets at fair value through profit or loss	10,127,665	44,766	-	44,766
Realsil Microelectronics (Suzhou) Co.,LTD	Jian-Xin Monetary Fund	None	Financial assets at fair value through profit or loss	220,621	975	-	975
Realsil Microelectronics (Suzhou) Co.,LTD	JIA SHI Monetary Fund	None	Financial assets at fair value through profit or loss	35,490	157	-	157
Realsil Microelectronics (Suzhou) Co.,LTD	BOC Monetary Fund	None	Financial assets at fair value through profit or loss	94,254	417		417
Realsil Microelectronics (Suzhou) Co.,LTD	Guang-Fa Currency Fund	None	Financial assets at fair value through profit or loss	20,420,580	90,262	-	90,262
Realtek Semiconductor (Shen Zhen) Corp.	Ri-Ri-Xin Fund	None	Financial assets at fair value through profit or loss	750	3	-	3
Realtek Semiconductor (Shen Zhen) Corp.	Jhao-Jhao-Jin Fund	None	Financial assets at fair value through profit or loss	42,033,980	185,797	-	185,797
Cortina Network Systems (Shanghai) Co. Ltd.	Step by step Gold Fund	None	Financial assets at fair value through profit or loss	22,064,926	97,530	-	97,530
Cortina Network Systems (Shanghai) Co. Ltd.	Cuam Money Fund	None	Financial assets at fair value through profit or loss	6,124,795	27,072	-	27,072
Cortina Network Systems (Shanghai) Co. Ltd.	JIA SHI Monetary Fund	None	Financial assets at fair value through profit or loss	5,067,375	22,398	-	22,398

Note 1: Marketable securities in the table refer to stocks, bonds, beneficiary certificates and other related derivative securities within the scope of IFRS 9 ‘Financial instruments'.

Note 2: Leave the column blank if the issuer of marketable securities is non-related party.

Note 3: Fill in the amount after adjusted at fair value and deducted by accumulated impairment for the marketable securities measured at fair value; fill in the acquisition cost for the marketable securities not measured at fair value.

Note 4: The number of shares of securities and their amounts pledged as security or pledged for loans and their restrictions on use under some agreements should be stated in the footnote if the securities presented herein have such conditions.

Table 3 Page 2

Table 4

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

Purchases or sales of goods from or to related parties reaching NT$100 million or 20% of paid-in capital or more

For the nine-month period ended September 30, 2023

Expressed in thousands of NTD

(Except as otherwise indicated)

Purchase/seller	Counterparty	Relationship with the counterparty		Transaction	Transaction		Differences in transaction terms compared to third party transactions	Differences in transaction terms compared to third party transactions	Notes/accounts receivable(payable)	Notes/accounts receivable(payable)	Footnote
			Purchase (sales)	Amount	Percentage of total purchase (sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable(payable)
Realtek Semiconductor Corporation	G.M.I Technology Inc.	Other related parties	(Sales)	4,624,941) ($	6%	Approximately the same with third party transactions	Approximately the same with third party transactions	Approximately the same with third party transactions	1,482,394 $	9%
Realtek Singapore Private Limited	G.M.I Technology Inc.	Other related parties	(Sales)	3,907,659) (	5%	Approximately the same with third party transactions	Approximately the same with third party transactions	Approximately the same with third party transactions	988,075	6%
RayMX Microelectronics Corp.	G.M.I Technology Inc.	Other related parties	(Sales)	183,679) (	0%	Approximately the same with third party transactions	Approximately the same with third party transactions	Approximately the same with third party transactions	61,130	0%
Realtek Semiconductor Corporation	Greatek Electronics Inc.	Other related parties	Purchase	606,129	2%	Approximately the same with third party transactions	Approximately the same with third party transactions	Approximately the same with third party transactions	313,334) (	5%
Realtek Singapore Private Limited	Greatek Electronics Inc.	Other related parties	Purchase	291,630	1%	Approximately the same with third party transactions	Approximately the same with third party transactions	Approximately the same with third party transactions	136,019) (	2%

Table 4

Table 5

Expressed in thousands of NTD

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

Receivables from related parties reaching NT$100 million or 20% of paid-in capital or more

September 30, 2023

(Except as otherwise indicated)

Creditor	Counterparty	Relationship with the counterparty	Balance as at September 30,2023	Turnover rate	Overdue receivables	Overdue receivables	Amount collected subsequent to the balance sheet date	Allowance for doubtful accounts
					Amount	Action taken
Realtek Semiconductor Corporation	G.M.I Technology Inc.	Other related parties	1,482,394 $	4.87	$ -	-	673,618 $	14,974 $
Realtek Singapore Private Limited	G.M.I Technology Inc.	Other related parties	988,075	4.23	-	-	474,342	-

Table 5

Table 6

Expressed in thousands of NTD (Except as otherwise indicated)

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

Significant inter-company transactions during the reporting period For the nine-month period ended September 30, 2023

Transaction

Number (Note 1)	Companyname	Counterparty	Relationship (Note 2)	General ledgeraccount	Amount	Transactionterms	Percentage of consolidated total operating revenues or totalassets (Note 3)
0	Realtek Semiconductor Corporation	RayMX Microelectronics Corp.	1	Other receivables	$ 52,497	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.05%
0	Realtek Semiconductor Corporation	Realtek Korea Inc.	1	Technical service fees	132,849	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.18%
0	Realtek Semiconductor Corporation	Realtek Korea Inc.	1	Other payables	29,027	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.03%
0	Realtek Semiconductor Corporation	Ubilinx Technology Inc.	1	Technical service fees	486,039	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.67%
0	Realtek Semiconductor Corporation	Ubilinx Technology Inc.	1	Other payables	172,836	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.15%
1	Realtek Singapore Private Limited	Realsil Microelectronics (Suzhou) Co.,LTD	3	Technical service fees	2,234,916	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	3.08%
1	Realtek Singapore Private Limited	Realsil Microelectronics (Suzhou) Co.,LTD	3	Prepaid account	822,834	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.72%
1	Realtek Singapore Private Limited	Realtek Semiconductor(Shen Zhen) Corp.	3	Technical service fees	448,841	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.62%
1	Realtek Singapore Private Limited	Realtek Semiconductor(Shen Zhen) Corp.	3	Other payables	161,340	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.14%
1	Realtek Singapore Private Limited	Cortina Access, Inc.	3	Technical service fees	197,331	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.27%
1	Realtek Singapore Private Limited	Cortina Access, Inc.	3	Other payables	22,246	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.02%
1	Realtek Singapore Private Limited	Cortina Network Systems (Shanghai) Co. Ltd.	3	Technical service fees	121,016	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.17%
1	Realtek Singapore Private Limited	Cortina Network Systems (Shanghai) Co. Ltd.	3	Other payables	40,504	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.04%
1	Realtek Singapore Private Limited	Cortina Systems Taiwan Limited	3	Technical service fees	119,812	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.17%
1	Realtek Singapore Private Limited	Cortina Systems Taiwan Limited	3	Other payables	14,422	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.01%
1	Realtek Singapore Private Limited	Realtek Semiconductor (Japan) Corp.	3	Technical service fees	52,568	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.07%
1	Realtek Singapore Private Limited	Realtek Viet Nam Co., Inc.	3	Technical service fees	27,460	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.04%
1	Realtek Singapore Private Limited	RayMX Microelectronics Corp.	3	Other receivables	52,497	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.05%

Note 1: The numbers filled in for the transaction company in respect of inter-company transactions are as follows:

(1) Parent company is ‘0’.

(2) The subsidiaries are numbered in order starting from ‘1’.

Note 2: Relationship between transaction company and counterparty is classified into the following three categories; fill in the number of category each case belongs to (If transactions between parent company and subsidiaries or between subsidiaries refer to the same transaction, it is not required to disclose twice. For example, if the parent company has already disclosed its transaction with a subsidiary, then the

subsidiary is not required to disclose the transaction; for transactions between two subsidiaries, if one of the subsidiaries has disclosed the transaction, then the other is not required to disclose the transaction.):

(1) Parent company to subsidiary.

(2) Subsidiary to parent company.

(3) Subsidiary to subsidiary

Note 3: Regarding percentage of transaction amount to consolidated total operating revenues or total assets, it is computed based on period-end balance of transaction to consolidated total assets for balance sheet accounts and based on accumulated transaction amount for the period to consolidated total operating revenues for income statement accounts.

Note 4: Only transactions above NT$10 million are disclosed. Transactions of related parties are not further disclosed here.

Table 6

Table 7

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

Information on investees

For the nine-month period ended September 30, 2023

Expressed in thousands of NTD (Except as otherwise indicated)

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held as at September 30,2023	Shares held as at September 30,2023	Shares held as at September 30,2023	Net profit (loss) of the investee for the nine-month period ended September 30, 2023	Investment income (loss) recognised by the Company for the nine- month period ended September 30,2023	Footnote
				Balance as at September 30,2023	Balance as at December 31, 2022	Number of shares	Ownership (%)	Book value
Realtek Semiconductor Corporation	Amber Universal Inc.	British Virgin Islands	Investment holdings	$ 1,852,648	$ 4,833,896	41,432	100%	$ 672,061	39,571 $	39,571 $	Subsidiary
Realtek Semiconductor Corporation	Realtek Singapore Private Limited	Singapore	ICs manufacturing, design, research, development, sales, and marketing	4,578,348	4,357,007	116,059,638	100%	45,996,852	6,268,166	6,269,411	Subsidiary
Realtek Semiconductor Corporation	Realtek Investment Singapore Private Limited	Singapore	Investment holdings	6,453,600	6,141,600	200,000,000	100%	7,496,866	210,972	210,972	Subsidiary
Realtek Semiconductor Corporation	Realsun Investments Co., Ltd.	Taiwan	Investment holdings	280,000	280,000	28,000,000	100%	741,305	3,089) (	3,089) (	Subsidiary
Realtek Semiconductor Corporation	Hung-wei Venture Capital Co., Ltd.	Taiwan	Investment holdings	250,000	250,000	25,000,000	100%	496,557	33,943	33,943	Subsidiary
Realtek Semiconductor Corporation	Realking Investments Co., Ltd.	Taiwan	Investment holdings	293,930	293,930	29,392,985	100%	245,360	22,295) (	22,295) (	Subsidiary
Realtek Semiconductor Corporation	Realsun Technology Corporatioin	Taiwan	ICs manufacturing, design, research, development, sales, and marketing	5,000	5,000	500,000	100%	4,973	57) (	57) (	Subsidiary
Realtek Semiconductor Corporation	Bobitag Inc.	Taiwan	Manufacturing and installation of computer equipment and wholesasle, retail and related services of electronic materials and information/software	19,189	19,189	1,918,910	67%	19,405	202	135	Subsidiary
Realtek Semiconductor Corporation	AICONNX Technology Corporation	Taiwan	ICs manufacturing, design, research, development, sales, and marketing	20,000	20,000	2,000,000	100%	2,752	9,919	10,991	Subsidiary
Realtek Semiconductor Corporation	Wise Elite Global Limited	British Virgin Islands	Investment holdings	32,268	-	1,000	100%	32,587	304	304	Subsidiary

Table 7 Page 1

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

Information on investees

For the nine-month period ended September 30, 2023

Table 7

Expressed in thousands of NTD (Except as otherwise indicated)

Initial investment amount Shares held as at September 30, 2023

Investor	Investee	Location	Main business activities	Balance as at September 30,2023	Balance as at December 31, 2022	Number of shares	Ownership (%)	Book value	Net profit (loss) of the investee for the nine-month period ended September 30, 2023	Investment income (loss) recognised by the Company for the nine- month period ended September 30,2023	Footnote
Realtek Semiconductor Corporation	Estinet Technologies Incorporation	Taiwan	Research and development, design, manufacturing, sales and other services of electronic components, information/Software and integrated circuits.	$ 110,000	$ 110,000	-	-	$ -	158,506) ($	(10,588) $	Investments accounted for under equity method
Realking Investments Co., Ltd.	Innorich Venture Capital Corp.	Taiwan	Venture capital activities	200,000	200,000	20,000,000	37.38%	113,692	59,159) (	22,115) (	Investments accounted for under equity method
Realking Investments Co., Ltd.	Starmems Semiconductor Corporation	Taiwan	Research and development, design, manufacturing, sales and other services of electronic components, information/Software and integrated circuits.	10,000	10,000	1,000,000	10%	5,047	21,948) (	2,195) (	Investments accounted for under equity method
Realsun Investments Co., Ltd.	Starmems Semiconductor Corporation	Taiwan	Research and development, design, manufacturing, sales and other services of electronic components, information/Software and integrated circuits.	23,000	23,000	2,300,000	23%	11,608	21,948) (	5,048) (	Investments accounted for under equity method
Hung-wei Venture Capital Co., Ltd.	Starmems Semiconductor Corporation	Taiwan	Research and development, design, manufacturing, sales and other services of electronic components, information/Software and integrated circuits.	12,000	12,000	1,200,000	12%	6,056	21,948) (	2,634) (	Investments accounted for under equity method
Leading Enterprises Limited	Realtek Semiconductor (Japan) Corp.	Japan	Information collection and technical support	4,322	4,627	400	100%	11,816	10,337	10,337	Sub-Subsidiary
Amber Universal Inc.	Realtek Semiconductor (Hong Kong)Limited	Hong Kong	Information services and technical support	6,185	5,901	-	100%	1,169	6) (	6) (	Sub-Subsidiary
Realtek Singapore Private Limited	Empsonic Enterprises Inc.	Mauritius	Investment holdings	911,571	867,501	2,825,000	100%	2,136,664	12,446) (	12,446) (	Sub-Subsidiary
Realtek Singapore Private Limited	Cortina Access Inc.	U.S.A	R&D and technical support	1,318,019	1,254,299	16,892	100%	1,004,948	36,617	36,617	Sub-Subsidiary

Table 7 Page 2

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

Table 7

Expressed in thousands of NTD (Except as otherwise indicated)

Information on investees

For the nine-month period ended September 30, 2023

Initial investment amount Shares held as at September 30, 2023

Investor	Investee	Location	Main business activities	Balance as at September 30,2023	Balance as at December 31, 2022	Number of shares	Ownership (%)	Book value	Net profit (loss) of the investee for the nine-month period ended September 30, 2023	Investment income (loss) recognised by the Company for the nine- month period ended September 30,2023	Footnote
Realtek Singapore Private Limited	Cortina Systems Taiwan Limited	Taiwan	R&D and technical support	$ 64,536	$ 61,416	21,130,000	100%	$ 85,857	13,783 $	13,783 $	Sub-Subsidiary
Realtek Singapore Private Limited	Realtek Viet Nam Co., Ltd.	Vietnam	R&D and technical support	129,072	122,832	4,000,000	100%	88,811	2,294	2,294	Sub-Subsidiary
Realtek Singapore Private Limited	Leading Enterprises Limited	British Virgin Islands	Investment holdings	15,938,133	15,167,602	34,630	100%	15,409,393	478,586	478,586	Sub-Subsidiary
Realtek Singapore Private Limited	Bluocean Inc.	Cayman Islands	Investment holdings	3,551,093	3,379,415	110,050,000	100%	3,679,022	118,998	118,998	Sub-Subsidiary
Realtek Singapore Private Limited	Talent Eagle Enterprise Inc.	Cayman Islands	Investment holdings	3,681,779	3,503,783	114,100,000	100%	2,592,699	120,267	120,267	Sub-Subsidiary
Talent Eagle Enterprise Inc.	Ubilinx Technology Inc.	U.S.A	R&D and technical support	1,936,080	1,842,480	60,000,000	100%	359,529	30,693	30,693	Sub-Subsidiary
Bluocean Inc.	Realtek Semiconductor (Malaysia)Sdn.Bhd.	Malaysia	R&D and technical support	71,623	72,519	10,450,000	100%	68,879	2,342	2,342	Sub-Subsidiary
Bluocean Inc.	Realtek Korea Inc.	Korea	R&D and technical support	47,619	48,177	200,000	100%	62,508	10,286	10,286	Sub-Subsidiary

Note ： The amount of foreign currencies denominated in New Taiwan dollars in this table, which relates to income and expenses which were re-translated at the average exchange rate from January 1, 2023 to September 30, 2023, others were re-translated at the exchange rate prevailing at the end of the financial reporting period.

Table 7 Page 3

Table 8

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

Information on investments in Mainland China

For the nine-month period ended September 30, 2023

Expressed in thousands of NTD (Except as otherwise indicated)

Investee in Mainland China	Main business activities	Paid-in Capital	Investment method (Note1)	Accumulated amount of remittance from Taiwan to Mainland China as at January1,2023	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the nine-month period ended September 30,2023	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the nine-month period ended September 30,2023	Accumulated amount of remittance from Taiwan to Mainland China as at September 30,2023	Net income of investee for the nine-month period ended September 30, 2023	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the nine- month period ended September 30, 2023 (Note2)	Book value of investment in Mainland China as at September 30,2023	Accumulated amount of investment income remitted back to Taiwan as at September 30,2023	Footnote
					Remitted to Mainland China	Remitted back to Taiwan
Cortina Network Systems (Shanghai) Co., Ltd. Realsil Microelectronics (Suzhou) Co.,LTD Realtek Semiconductor (Shen Zhen) Corp. RayMX Microelectronics Corp. Suzhou Pankore Integrated Circuit Technology Co. Ltd.	R&D and technical support R&D and technical support R&D and technical support ICs manufacturing, design, research, development, sales, and marketing ICs manufacturing, design, research, development, sales, and marketing	116,165 $ 903,504 161,340 116,029 44,202	2 2 2 2 2	116,165 $ 903,504 161,340 116,029 44,202	$ - - - - -	$ - - - - -	116,165 $ 903,504 161,340 116,029 44,202	9,946 $ 5,347) ( 7,321 141,559) ( 8,173) (	100% 100% 100% 100% 100%	9,946 $ 5,347) ( 7,321 141,559) ( 8,173) (	119,751 $ 2,131,953 319,350 240,994 150,312) (	$ - - - - -

Companyname	Accumulated amount of remittance from Taiwan to Mainland China as at September30,2023	Investment amount approved by the Investment Commission of the Ministry of Economic Affairs (MOEA)	Ceiling on investments in Mainland China imposed by the Investment Commission of MOEA
Cortina Network Systems (Shanghai) Co., Ltd. Realsil Microelectronics (Suzhou) Co.,LTD Realtek Semiconductor (Shan Zhen) Corp. RayMX Microelectronics Corp. Suzhou Pankore Integrated Circuit Technology Co. Ltd.	116,165 $ 903,504 161,340 116,029 44,202	116,165 $ 903,504 161,340 116,029 44,202	$ 25,481,385

Note 1: Investment methods are classified into the following three categories; fill in the number of category each case belongs to:

(1) Directly invest in a company in Mainland China.

(2) Through investing in an existing company in the third area, which then invested in the investee in Mainland China.

(3) Others.

Note 2: In the Investment income (loss) recognised by the Company for the nine-month period ended September 30, 2023 column pertained to obtaining the company’s self-contained financial statements.

Note 3: The amount of foreign currencies denominated in New Taiwan dollars in this table, which relates to income and expenses which were re-translated at the average exchange rate from January 1, 2023 to September 30, 2023, others were re-translated at the exchange rate prevailing at the end of the financial reporting period.

Table 8