S.C.P.C — Audit Report / Information 2023

Nov 9, 2023

STANDARD CHEM. & PHARM. CO., LTD.

PARENT COMPANY ONLY FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS’

REPORT

DECEMBER 31, 2023 AND 2022

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For the convenience of readers and for information purpose only, the auditors’ report and the accompanying financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. In the event of any discrepancy between the English version and the original Chinese version or any differences in the interpretation of the two versions, the Chinese-language auditors’ report and financial statements shall prevail.

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INDEPENDENT AUDITORS’ REPORT TRANSLATED FROM CHINESE

To the Board of Directors and Shareholders of STANDARD CHEM. & PHARM. CO., LTD.

Opinion

We have audited the accompanying parent company only balance sheets of STANDARD CHEM. & PHARM. CO., LTD. (the “Company”) as of December 31, 2023 and 2022, and the related parent company only statements of comprehensive income, of changes in equity and of cash flows for the years then ended, and notes to the parent company only financial statements, including a summary of material accounting policies.

In our opinion, based on our audits and the reports of other auditors (refer to Other matter section), the accompanying parent company only financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2023 and 2022, and its financial performance and its cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for opinion

We conducted our audits in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors’ responsibilities for the audit of the parent company only financial statements section of our report. We are independent of the Company in accordance with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. Based on our audits and the reports of other auditors, we believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Company’s 2023 parent company only financial statements. These matters were addressed in the context of our audit of the parent company only financial statements as a whole and, in forming our opinion thereon, we do not provide a separate opinion on these matters.

Key audit matters of the Company’s 2023 parent company only financial statements are as follows:

Valuation of inventories

Description

Refer to Note 4(10) for accounting policies on the valuation of inventories, Note 5(2) for the uncertainty of significant accounting estimations and assumptions relating to valuation of inventories, and Note 6(6) for the details of allowance for inventory valuation loss. As of December 31, 2023, the carrying amount of inventories and allowance for inventory valuation loss are $720,543 thousand and $16,389 thousand, respectively.

The Company is primarily engaged in the manufacture and sales of human medicine. Due to the influence of market demand and short expiration date of medicines, there is a risk of market price decline and obsolescence of inventories. The Company measures inventories at the lower of cost and net realisable value. The net realisable values of obsolete inventories are determined based on the historical information on the selling price. Given that the valuation of inventories is subject to uncertainty of assumptions and the accounting estimations will have significant influence on the inventory values, we considered the valuation of inventories a key audit matter.

How our audit addressed the matter

We performed the following key audit procedures on the above key audit matter:

1. Assessed the reasonableness of policies on allowance for inventory valuation loss.

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1. Assessed the effectiveness of the management’s inventory control, based on our understanding of the operations of the warehouse management, inspected the annual inventory taking plan and performed our observation.

2. Tested whether the basis of inventory aging used in calculating the net realisable value of inventory is consistent with the Company’s policy.

3. Validated the net realisable value of inventories and the adequacy of allowance for inventory valuation loss.

Existence of domestic sales revenue from human medicines

Description

Refer to Note 4(27) for accounting policies on revenue recognition. Revenue is recognised when control of the products has transferred, being when the products are delivered to the customer, the customer has full discretion over the channel and price to sell the products, and there is no unfulfilled obligation that could affect the customer’s acceptance of the products.

The Company is primarily engaged in the manufacturing and sales of human medicines. The Company’s sales is mainly domestic-based and its customers are numerous, including hospitals, clinics and pharmacies all over the country. Since the sales transactions are numerous and would require a longer period for verification, we considered the existence of domestic sales revenue from human medicines a key audit matter.

How our audit addressed the matter

We performed the following key audit procedures for the above matter:

1. Assessed the consistency and effectiveness of internal control relevant to sales revenue recognition.

2. Assessed basic information of the major customers, including the details of the chairman and major shareholders, registered address, principal place of business, capital and main business activities, etc.

3. Selected samples of sales transactions and checked against related supporting documentation, including unit prices, quantities, reasonableness of sales allowance

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recognition, waybill and subsequent cash collection.

Other matter – Reference to the audits of other auditors

We did not audit the financial statements of an investment accounted for under equity method which were audited by other auditors. Therefore, our opinion expressed herein, insofar as it relates to the amounts included in respect of this associate, is based solely on the reports of the other auditors. The balance of this investment accounted for under equity method amounted to $243,423 thousand and $235,502 thousand, constituting 3.64% and 3.62% of total assets as of December 31, 2023 and 2022, respectively, and the comprehensive income recognised from subsidiaries, associates and joint ventures accounted for under equity method amounted to $4,679 thousand and $33,360 thousand, constituting 0.47% and 3.96% of total comprehensive income for the years then ended, respectively.

Responsibilities of management and those charged with governance for the parent company only financial statements

Management is responsible for the preparation and fair presentation of the parent company only financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and for such internal control as management determines is necessary to enable the preparation of parent company only financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the parent company only financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance, including audit committee, are responsible for overseeing

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the Company’s financial reporting process.

Auditors’ responsibilities for the audit of the parent company only financial statements

Our objectives are to obtain reasonable assurance about whether the parent company only financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Standards on Auditing of the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these parent company only financial statements.

As part of an audit in accordance with the Standards on Auditing of the Republic of China, we exercise professional judgment and professional skepticism throughout the audit. We also:

1. Identify and assess the risks of material misstatement of the parent company only financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

2. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.

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

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1. Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the parent company only financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Company to cease to continue as a going concern.

2. Evaluate the overall presentation, structure and content of the parent company only financial statements, including the disclosures, and whether the parent company only financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

3. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the parent company only financial statements. We are responsible for the direction, supervision and performance of the audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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

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From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the parent company only financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Independent Accountants

Tien, Chung-Yu Yeh, Fang-Ting

PricewaterhouseCoopers, Taiwan Republic of China February 27, 2024

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The accompanying parent company only 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 parent company only financial statements and independent auditors’ 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.

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STANDARD CHEM. & PHARM. CO., LTD. PARENT COMPANY ONLY BALANCE SHEETS

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

Assets	Notes 6(1) 6(1) 6(4), 7 and 12 6(4), 7 and 12 6(5) and 7 5(2) and 6(6) 5(2) and 6(2) 5(2) and 6(3) 6(7)(27) and 7 6(7)(8) and 7 6(9) and 7 6(8)(10) 6(11) 6(25) 6(8)	December 31, 2023 AMOUNT % $ 715,774 11 8,000 - 109,055 2 578,405 9 11,314 - 704,154 10 48,900 1 4,231 - 2,179,833 33 11,604 - 343,837 5 2,930,322 44 994,618 15 12,976 - 62,773 1 4,160 - 82,778 1 12,012 - 38,291 1 6,619 - 4,499,990 67 $ 6,679,823 100	December 31, 2022	December 31, 2022
		AMOUNT $ 715,774 8,000 109,055 578,405 11,314 704,154 48,900 4,231 2,179,833 11,604 343,837 2,930,322 994,618 12,976 62,773 4,160 82,778 12,012 38,291 6,619 4,499,990 $ 6,679,823	AMOUNT $ 858,252 - 100,411 533,695 72,290 562,398 47,159 24,973 2,199,178 10,561 248,366 2,820,888 1,003,055 15,711 62,987 6,374 79,609 27,128 25,685 5,519 4,305,883 $ 6,505,061	%
Current assets 1100 Cash and cash equivalents 1136 Financial assets at amortised cost - current 1150 Notes receivable, net 1170 Accounts receivable, net 1200 Other receivables 130X Inventories 1410 Prepayments 1479 Other current assets 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 1550 Investments accounted for under equity method 1600 Property, plant and equipment 1755 Right-of-use assets 1760 Investment property, net 1780 Intangible assets 1840 Deferred income tax assets 1915 Prepayments for equipment 1920 Guarantee deposits paid 1990 Other non-current assets 15XX Total non-current assets 1XXX TOTAL ASSETS				13 - 2 8 1 9 1 -
				34
				- 4 43 16 - 1 - 1 1 - -
				66
				100

(Continued)

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STANDARD CHEM. & PHARM. CO., LTD. PARENT COMPANY ONLY BALANCE SHEETS

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

Liabilities and Equity	Notes 6(12) 6(18) 7 6(25) 6(9) and 7 6(25) 6(9) and 7 6(13) 6(14) 6(7)(15)(27) 6(3)(7)(16)(17) 6(3)(7)(17) 9	December 31, 2023 December 31, 2022 AMOUNT % AMOUNT % $ 460,000 7 $ 870,000 14 34,899 1 35,430 1 134,316 2 141,490 2 166,760 2 142,739 2 252,697 4 248,593 4 108,521 2 83,846 1 5,290 - 4,444 - 619 - 942 - 1,163,102 18 1,527,484 24 61,992 1 64,893 1 7,923 - 11,540 - 139,057 2 147,770 2 8,733 - 200 - 217,705 3 224,403 3 1,380,807 21 1,751,887 27 1,786,961 27 1,786,961 28 223,886 3 220,484 3 878,245 13 793,498 12 115,935 2 110,329 2 2,280,812 34 1,957,837 30 13,177 - ( 115,935) ( 2 ) 5,299,016 79 4,753,174 73 $ 6,679,823 100 $ 6,505,061 100
		AMOUNT $ 460,000 34,899 134,316 166,760 252,697 108,521 5,290 619 1,163,102 61,992 7,923 139,057 8,733 217,705 1,380,807 1,786,961 223,886 878,245 115,935 2,280,812 13,177 5,299,016 $ 6,679,823
Current liabilities 2100 Short-term borrowings 2130 Contract liabilities - current 2150 Notes payable 2170 Accounts payable 2200 Other payables 2230 Current income tax liabilities 2280 Lease liabilities - current 2310 Receipts in advance 21XX Total current liabilities Non-current liabilities 2570 Deferred income tax liabilities 2580 Lease liabilities - non-current 2640 Net defined benefit liability - non- current 2645 Guarantee deposits received 25XX Total non-current liabilities 2XXX Total liabilities Equity Share capital 3110 Common stock 3200 Capital surplus Retained earnings 3310 Legal reserve 3320 Special reserve 3350 Unappropriated retained earnings 3400 Other equity interest 3XXX Total equity Significant contingent liabilities and unrecognised contract commitments 3X2X TOTAL LIABILITIES AND EQUITY

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

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STANDARD CHEM. & PHARM. CO., LTD. PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS, EXCEPT EARNINGS PER SHARE DATA)

Items

For the years ended December 31, 2023 2022 Notes AMOUNT % AMOUNT % 6(18) and 7 $ 2,989,635 100 $ 2,772,204 100 6(6)(9)(11)(13)(23) (24) and 7 ( 1,497,249) ( 50) ( 1,453,091) ( 53) 1,492,386 50 1,319,113 47 6(9)(11)(13)(23)(2 4) and 7 ( 458,440) ( 16) ( 417,752) ( 15) ( 186,240) ( 6) ( 166,223) ( 6) ( 189,105) ( 6) ( 148,410) ( 5) 12 ( 281) - 837 - ( 834,066) ( 28) ( 731,548) ( 26) 658,320 22 587,565 21 6(19) 31,593 1 11,232 - 6(3)(5)(10)(20) and 7 105,492 3 56,220 2 6(2)(9)(21), 7 and 12 7,613 - 75,984 3 6(8)(9)(22) and 7 ( 10,900) - ( 7,821) - 6(7) 202,268 7 205,039 7 336,066 11 340,654 12 994,386 33 928,219 33 6(25) ( 159,500) ( 5) ( 112,811) ( 4) $ 834,886 28 $ 815,408 29 6(13) $ 2,895 - $ 27,915 1 6(3)(17) 152,452 5 ( 14,235) ( 1) 6(7)(17) 495 - 3,870 - 6(25) ( 578) - ( 5,583) - 6(7)(17) ( 970) - 14,492 1 $ 154,294 5 $ 26,459 1 $ 989,180 33 $ 841,867 30 6(26) $ 4.67 $ 4.56 $ 4.67 $ 4.56

4000 Operating revenue 5000 Operating costs 5900 Net operating margin Operating expenses 6100 Selling expenses 6200 General and administrative expenses 6300 Research and development expenses 6450 Expected credit (loss) gain 6000 Total operating expenses 6900 Operating profit Non-operating income and expenses 7100 Interest income 7010 Other income 7020 Other gains and losses 7050 Finance costs 7070 Share of profit of subsidiaries, aassociates and joint ventures accounted for under equity method 7000 Total non-operating income and expenses 7900 Profit before income tax 7950 Income tax expense 8200 Profit for the year Other comprehensive income (loss) Components of other comprehensive income (loss) that will not be reclassified to profit or loss 8311 Remeasurement of defined benefit plans 8316 Unrealised gains (losses) from investments in equity instruments measured at fair value through other comprehensive income 8330 Share of other comprehensive income of associates and joint ventures accounted for under equity method 8349 Income tax related to components of other comprehensive loss Components of other comprehensive income (loss) that will be reclassified to profit or loss 8361 Financial statesments translation differences of foreign operations 8300 Total other comprehensive income for the year 8500 Total comprehensive income for the year Earnings per share (in dollars) 9750 Basic 9850 Diluted

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

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STANDARD CHEM. & PHARM. CO., LTD. PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

For the year ended December 31, 2022 Balance at January 1, 2022 Profit for the year Other comprehensive income (loss) for the year Total comprehensive income (loss) for the year Difference between proceeds from acquisition or disposal of subsidiaries and book value Adjustment to capital surplus due to associates' adjustment of capital surplus Overdue cash dividends payable Disposal of financial assets at fair value through other comprehensive income Appropriations of 2021 earnings: Legal reserve Special reserve Cash dividends Effect of organisational restructuring Balance at December 31, 2022 For the year ended December 31, 2023 Balance at January 1, 2023 Profit for the year Other comprehensive income (loss) for the year Total comprehensive income (loss) for the year Adjustment to capital surplus due to associates' adjustment of capital surplus Overdue cash dividends payable Disposal of financial assets at fair value through other comprehensive income Appropriations of 2022 earnings: Legal reserve Special reserve Cash dividends Balance at December 31, 2023	Notes		Common stock			Capital Surplus	Capital Surplus					Retained Earnings	Retained Earnings	Retained Earnings	Other Equity Interest	Other Equity Interest		Total equity
					Additional paid-in capital	Difference between the price for acquisition or disposal of subsidiaries and carryingamount Change in net equity of associates and joint ventures accounted for using the equitymethod		Others		Legal reserve		Special reserve		Unappropriated retained earnings	Financial statements translation differences of foreign operations	Unrealised gains or losses from financial assets measured at fair value through other comprehensive income
	6(17) 6(7) 6(7)(15) 6(15) 6(3)(17) 6(16) 6(7)(15) 6(17) 6(7)(15) 6(15) 6(3)(17) 6(16)		$ 1,786,961 - - - - - - - - - - - $ 1,786,961 $ 1,786,961 - - - - - - - - - $ 1,786,961		$ 143,353 - - - - - - - - - - 8,735 $ 152,088 $ 152,088 - - - - - - - - - $ 152,088	$ 57,377 - - - 3,521 - - - - - - - $ 60,898 $ 60,898 - - - - - - - - - $ 60,898	$ 3,341 - - - - 3,744 - - - - - - $ 7,085 $ 7,085 - - - 3,281 - - - - - $ 10,366	$ 242 - - - - - 171 - - - - - $ 413 $ 413 - - - - 121 - - - - $ 534		$ 709,879 - - - - - - - 83,619 - - - $ 793,498 $ 793,498 - - - - - - 84,747 - - $ 878,245		$ - - - - - - - - - 110,329 - - $ 110,329 $ 110,329 - - - - - - - 5,606 - $ 115,935	$ 1,751,052 815,408 26,107 841,515 - - - 5,958 ( 83,619 ) ( 110,329 ) ( 446,740 ) - $ 1,957,837 $ 1,957,837 834,886 2,717 837,603 - - 22,465 ( 84,747 ) ( 5,606 ) ( 446,740 ) $ 2,280,812		($ 20,974 ) - 14,492 14,492 - - - - - - - - ($ 6,482 ) ($ 6,482 ) - ( 970 ) ( 970 ) - - - - - - ($ 7,452 )	($ 89,355 ) - ( 14,140 ) ( 14,140 ) - - - ( 5,958 ) - - - - ($ 109,453 ) ($ 109,453 ) - 152,547 152,547 - - ( 22,465 ) - - - $ 20,629	$ 4,341,876 815,408 26,459 841,867 3,521 3,744 171 - - - ( 446,740 ) 8,735 $ 4,753,174 $ 4,753,174 834,886 154,294 989,180 3,281 121 - - - ( 446,740 ) $ 5,299,016

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

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STANDARD CHEM. & PHARM. CO., LTD.

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS (EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax Adjustments Adjustments to reconcile profit (loss) Net gain on financial assets at fair value through profit and loss Expected credit losses (gains) Provision (reversal of allowance) for inventory market price decline Share of profit of subsidiaries, associates and joint ventures accounted for under equity method Property, plant and equipment transferred to expense Depreciation Net loss on disposal of property, plant and equipment Gain from lease modification Amortisation Dividend income Interest income Interest expenses Changes in operating assets and liabilities Changes in operating assets Notes receivable Accounts receivable Other receivables Inventories Prepayments Other current assets Changes in operating liabilities Contract liabilities - current Notes payable Accounts payable Other payables Receipts in advance Net defined benefit liability - non-current Cash inflow generated from operations Dividends received Interest received Interest paid Income tax paid Net cash flows from operating activities

For the years ended December 31, Notes 2023 2022 $ 994,386 $ 928,219 6(2)(21) ( 1,043 ) ( 712 ) 12 281 ( 837 ) 6(6) 3,760 ( 3,807 ) 6(7) ( 202,268 ) ( 205,039 ) 6(8)(28) 2,134 - 6(8)(9)(10) 102,116 95,641 6(21) - 1,113 6(9)(21) - ( 8 ) 6(23) 7,815 9,605 6(3)(20) ( 10,034 ) ( 9,604 ) 6(19) ( 31,593 ) ( 11,232 ) 6(22) 10,900 7,821 ( 8,644 ) 843 ( 44,991 ) ( 12,823 ) 61,032 83,216 ( 145,516 ) ( 58,097 ) ( 7,319 ) ( 10,577 ) 20,742 ( 24,177 ) ( 531 ) ( 5,139 ) ( 3,650 ) 39,333 24,021 ( 22,229 ) 15,061 ( 10,040 ) ( 323 ) ( 448 ) ( 5,818 ) ( 20,649 ) 780,518 770,373 111,317 83,670 31,537 8,832 ( 11,077 ) ( 7,540 ) ( 141,473 ) ( 95,977 ) 770,822 759,358

(Continued)

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STANDARD CHEM. & PHARM. CO., LTD.

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS (EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

CASH FLOWS FROM INVESTING ACTIVITIES Increase in financial assets at amortised cost - current Acqusition of financial assets at fair value through other comprehensive income - non-current Proceeds from disposal of financial assets at fair value through other comprehensive income - non- current Acquisition of investments accounted for under equity method Proceeds from disposal of investments accounted for under equity method Cash paid for acquisition of property, plant and equipment Interest paid for acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Acquisition of intangible assets Increase in prepayment for equipment (Increase) decrease in guarantee deposits paid Proceeds from disposals of other non-current assets Increase in other non-current assets Cash received from segment spin-off Net cash flows used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Increase in short-term borrowings Decrease in short-term borrowings Payments of lease liabilities Increase (decrease) in guarantee deposit received Overdue cash dividends payable Payment of cash dividends Net cash flows used in financing activities Net (decrease) increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year

For the years ended December 31, Notes 2023 2022 ($ 8,000 ) $ - ( 18,983 ) ( 60,632 ) 6(3) 75,964 23,305 6(28) - ( 51,563 ) 6(7) - 9,156 6(28) ( 69,060 ) ( 159,723 ) 6(8)(22)(28) ( 374 ) ( 638 ) - 722 6(11) ( 817 ) ( 3,564 ) ( 19,999 ) ( 88,852 ) ( 12,606 ) 11,947 6(28) - 38,364 ( 5,884 ) ( 4,530 ) 6(7) - 6,973 ( 59,759 ) ( 279,035 ) 6(29) 460,000 497,500 6(29) ( 870,000 ) ( 338,000 ) 6(29) ( 5,390 ) ( 4,842 ) 6(29) 8,533 ( 35 ) 6(15) 56 171 6(16) ( 446,740 ) ( 446,740 ) ( 853,541 ) ( 291,946 ) ( 142,478 ) 188,377 6(1) 858,252 669,875 6(1) $ 715,774 $ 858,252

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

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STANDARD CHEM. & PHARM. CO., LTD.

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS, EXCEPT AS OTHERWISE INDICATED)

1. HISTORY AND ORGANISATION

• (1) Standard Chem. & Pharm. Co., Ltd. (the ‘Company’) was incorporated on June 30, 1967 under the provisions of the Company Act of the Republic of China (R.O.C.) and other regulations. The Company is primarily engaged in the manufacturing and sales of Chinese and western medicine, cosmetics, beverage, normal instruments and medical instruments.

• (2) The Company has been listed on the Taiwan Stock Exchange starting from December 1995.

• THE DATE OF AUTHORISATION FOR ISSUANCE OF THE PARENT COMPANY ONLY

• FINANCIAL STATEMENTS AND PROCEDURES FOR AUTHORISATION

• These parent company only financial statements were authorised for issuance by the Board of Directors on February 27, 2024.

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

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

New standards, interpretations and amendments endorsed by the FSC and became effective from 2023 are as follows:

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

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

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(2) Effect of new issuances of or amendments to IFRS Accounting Standards as endorsed by the FSC but

not yet adopted by the Company

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

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Effective date by
New Standards, Interpretations and Amendments IASB
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New Standards,Interpretations andAmendments	Effective date by IASB
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 and interpretations have no significant impact to the Company’s financial condition and financial performance based on the Company’s assessment.

(3) IFRS Accounting Standards 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:

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

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

4. SUMMARY OF MATERIAL ACCOUNTING POLICIES

The principal accounting policies applied in the preparation of these parent company only financial statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

(1) Compliance statement

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

• (2) Basis of preparation

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

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

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

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  - (c) Defined benefit liabilities recognised 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 Company’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the parent company only financial statements are disclosed in Note 5, ‘CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF ASSUMPTION UNCERTAINTY’.

• (3) Foreign currency translation

Items included in the financial statements are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The parent company only financial statements are presented in New Taiwan dollars, which is the Company’s functional and presentation currency.

• A. Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions are recognised in profit or loss in the period in which they arise.

• B. Monetary assets and liabilities denominated in foreign currencies at the period end are re-translated at the exchange rates prevailing at the balance sheet date. Exchange differences arising upon retranslation at the balance sheet date are recognised in profit or loss.

• C. Non-monetary assets and liabilities denominated in foreign currencies held at fair value through profit or loss are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognised in profit or loss. Non-monetary assets and liabilities denominated in foreign currencies held at fair value through other comprehensive income are retranslated at the exchange rates prevailing at the balance sheet date; their translation differences are recognised in other comprehensive income. However, non-monetary assets and liabilities denominated in foreign currencies that are not measured at fair value are translated using the historical exchange rates at the dates of the initial transactions.

• D. All other foreign exchange gains and losses based on the nature of those transactions are presented in the statement of comprehensive income within other gains and losses.

(4) Classification of current and non-current items

• A. Assets that meet one of the following criteria are classified as current assets; otherwise they are classified as non-current assets:

• (a) Assets arising from operating activities that are expected to be realised, or are intended to be sold or consumed within the normal operating cycle;

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  - (b) Assets held mainly for trading purposes;

  - (c) Assets that are expected to be realised within 12 months from the balance sheet date;

  - (d) Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are to be exchanged or used to settle liabilities more than twelve months after the balance sheet date.

• B. Liabilities that meet one of the following criteria are classified as current liabilities; otherwise they are classified as non-current liabilities:

  • (a) Liabilities that are expected to be settled within the normal operating cycle;

  • (b) Liabilities arising mainly from trading activities;

  • (c) Liabilities that are to be settled within 12 months from the balance sheet date;

  • (d) Liabilities for which the repayment date cannot be extended unconditionally to more than twelve months after the balance sheet date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

• (5) Cash equivalents

• A. Cash equivalents refer to short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

• B. Time deposits and repurchase bonds that meet the definition above and are held for the purpose of meeting short-term cash commitments in operations are classified as cash equivalents.

• (6) Financial assets at fair value through profit or loss

• A. Financial assets at fair value through profit or loss are financial assets that are not measured at amortised cost or fair value through other comprehensive income.

• B. On a regular way purchase or sale basis, financial assets at fair value through profit or loss are recognised and derecognised using trade date accounting.

• C. At initial recognition, the Company measures the financial assets at fair value and recognises the transaction costs in profit or loss. The Company subsequently measures the financial assets at fair value, and recognises the gain or loss in profit or loss.

• D. The Company recognises the dividend income when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Company and the amount of the dividend can be measured reliably.

• (7) Financial assets at amortised cost

• A. Financial assets at a mortised cost are those that meet all of the following criteria:

  • (a) The objective of the Company’s business model is achieved by collecting contractual cash flows.

  • (b) The assets’ contractual cash flows represent solely payments of principal and interest.

• B. The Company’s time deposits which do not fall under cash equivalents are those with a short maturity period and are measured at initial investment amount as the effect of discounting is immaterial.

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

• A. Financial assets at fair value through other comprehensive income comprise equity securities which are not held for trading, and for which the Company has made an irrevocable election at initial recognition to recognise changes in fair value in other comprehensive income.

• B. On a regular way purchase or sale basis, financial assets at fair value through other comprehensive income are recognised and derecognised using trade date accounting.

• C. At initial recognition, the Company measures the financial assets at fair value plus transaction costs. The Company subsequently measures the financial assets at fair value:

  • The changes in fair value of equity investments that were recognised in other comprehensive income are reclassified to retained earnings and are not reclassified to profit or loss following the derecognition of the investment. Dividends are recognised as revenue when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Company and the amount of the dividend can be measured reliably.

• (9) Accounts and notes receivable

• A. Accounts and notes receivable entitle the Company a legal right to receive consideration in exchange for transferred goods or rendered services.

• B. The short-term accounts and notes receivable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

(10) Inventories

• Inventories are stated at the lower of cost and net realisable value. Cost is determined using the weighted-average method. The cost of finished goods and work in process comprises raw materials, direct labour, other direct costs and related production overheads (allocated based on normal operating capacity). It excludes borrowing costs. The item by item approach is used in applying the lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale. If the cost exceeds net realisable value, valuation loss is accrued and recognised in operating costs. If the net realisable value reverses, valuation is eliminated within credit balance and is recognised as deduction of operating costs.

(11) Impairment of financial assets

For financial assets at amortised cost, at each reporting date, the Company recognises the impairment provision for 12 months expected credit losses if there has not been a significant increase in credit risk since initial recognition or recognises the impairment provision for the lifetime expected credit losses (ECLs) if such credit risk has increased since initial recognition after taking into consideration all reasonable and verifiable information that includes forecasts. On the other hand, for accounts receivable that do not contain a significant financing component, the Company recognises the impairment provision for lifetime ECLs.

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(12) Derecognition of financial assets

The Company derecognises a financial asset when the contractual rights to receive the cash flows from the financial asset expire.

－ (13) Leasing arrangements (lessor) operating leases

• Lease income from an operating lease (net of any incentives given to the lessee) is recognised in profit or loss on a straight-line basis over the lease term.

(14) Investments accounted for under equity method / subsidiaries and associates

• A. Subsidiaries are all entities controlled by the Company. The Company controls an entity when the Company is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.

• B. Unrealised gains or losses occurred on the transactions between the Company and subsidiaries have been eliminated. The accounting policies of the subsidiaries have been adjusted where necessary to ensure consistency with the policies adopted by the Company.

• C. The Company’s share of its subsidiaries’ post-acquisition profits or losses is recognised in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognised in other comprehensive income. When the Company’s share of losses in a subsidiary equals or exceeds its interest in the subsidiary, the Company continues to recognise losses proportionate to its ownership.

• D. If changes in the Company’s shares in subsidiaries do not result in loss in control (transactions with non-controlling interest), transactions shall be considered as equity transactions, which are transactions between owners. Difference of adjustment of non-controlling interest and fair value of consideration paid or received is recognised in equity.

• E. Associates are all entities over which the Company has significant influence but not control. In general, it is presumed that the investor has significant influence, if an investor holds, directly or indirectly 20 percent or more of the voting power of the investee. Investments in associates are accounted for under the equity method and are initially recognised at cost.

• F. The Company’s share of its associates’ post-acquisition profits or losses is recognised in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognised in other comprehensive income. When the Company’s share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured receivables, the Company does not recognise further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the associate.

• G. When changes in an associate’s equity do not arise from profit or loss or other comprehensive income of the associate and such changes do not affect the Company’s ownership percentage of the associate, the Company recognises the Company’s share of change in equity of the associate in ‘capital surplus’ in proportion to its ownership.

• H. Unrealised gains on transactions between the Company and its associates are eliminated to the extent of the Company’s interest in the associates. Unrealised losses are also eliminated unless

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the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been adjusted where necessary to ensure consistency with the policies adopted by the Company.

• I. In the case that an associate issues new shares and the Company does not subscribe or acquire new shares proportionately, which results in a change in the Company’s ownership percentage of the associate but maintains significant influence on the associate, then ‘capital surplus’ and ‘investments accounted for under equity method’ shall be adjusted for the increase or decrease of its share of equity interest. If the above condition causes a decrease in the Company’s ownership percentage of the associate, in addition to the above adjustment, the amounts previously recognised in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately on the same basis as would be required if the relevant assets or liabilities were disposed of.

• J. When the Company disposes its investment in an associate and loses significant influence over this associate, the amounts previously recognised in other comprehensive income in relation to the associate, are reclassified to profit or loss, on the same basis as would be required if the relevant assets or liabilities were disposed of. If it retains significant influence over this associate, the amounts previously recognised in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately in accordance with the aforementioned approach.

• K. When the Company disposes its investment in an associate and loses significant influence over this associate, the amounts previously recognised as capital surplus in relation to the associate are transferred to profit or loss. If it retains significant influence over this associate, the amounts previously recognised as capital surplus in relation to the associate are transferred to profit or loss proportionately.

• L. Pursuant to the Regulations Governing the Preparation of Financial Reports by Securities Issuers, profit (loss) of the current period and other comprehensive income in the parent company only financial statements shall equal to the amount attributable to owners of the parent in the financial statements prepared with basis for consolidation. Owners’ equity in the parent company only financial statements shall equal to equity attributable to owners of the parent in the financial statements prepared with basis for consolidation.

• (15) Property, plant and equipment

• A. Property, plant and equipment are initially recorded at cost. Borrowing costs incurred during the construction period are capitalised.

• B. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred.

• C. Land is not depreciated. Other property, plant and equipment apply cost model and are

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depreciated using the straight-line method to allocate their cost over their estimated useful lives. Each part of an item of property, plant, and equipment with a cost that is significant in relation to the total cost of the item must be depreciated separately.

• D. The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each financial year-end. If expectations for the assets’ residual values and useful lives differ from previous estimates or the patterns of consumption of the assets’ future economic benefits embodied in the assets have changed significantly, any change is accounted for as a change in estimate under IAS 8, ‘Accounting Policies, Changes in Accounting Estimates and Errors’, from the date of the change. The estimated useful lives of property, plant and equipment are as follows:

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Assets Useful Life
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Buildings (including auxiliary equipment)	2 ～	60 years
Machinery and equipment	2 ～	15 years
Utility equipment	3 ～	20 years
Transportation equipment	2 ～	15 years
Office equipment	2 ～	9 years
Other equipment	2 ～	15 years

• (16) Leasing arrangements (lessee) － right-of-use assets / lease liabilities

• A. Leases are recognised as a right-of-use asset and a corresponding lease liability at the date at which the leased asset is available for use by the Company. For short-term leases or leases of low-value assets, lease payments are recognised as an expense on a straight-line basis over the lease term.

• B. Lease liabilities include the net present value of the remaining lease payments at the commencement date, discounted using the incremental borrowing interest rate. Lease payments are comprised of fixed payments, less any lease incentives receivable. The Company subsequently measures the lease liability at amortised cost using the interest method and recognises interest expense over the lease term. The lease liability is remeasured and the amount of remeasurement is recognised as an adjustment to the right-of-use asset when there are changes in the lease term or lease payments and such changes do not arise from contract modifications.

• C. At the commencement date, the right-of-use asset is stated at cost comprising the following: (a) The amount of the initial measurement of lease liability; and

  • (b) Any lease payments made at or before the commencement date.

  • The right-of-use asset is measured subsequently using the cost model and is depreciated from the commencement date to the earlier of the end of the asset’s useful life or the end of the lease term. When the lease liability is remeasured, the amount of remeasurement is recognised as an adjustment to the right-of-use asset.

• D. For lease modifications that decrease the scope of the lease, the lessee shall decrease the carrying amount of the right-of-use asset and remeasure the lease liability to reflect the partial or full

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termination of the lease, and recognise the difference in profit or loss.

(17) Investment property

An investment property is stated initially at its cost and measured subsequently using the cost model. Except for land, investment property is depreciated on a straight-line basis over its estimated useful life of 60 years.

(18) Intangible assets

• A. Patents

Patents is stated at cost and amortised on a straight-line basis over its estimated useful life of 5 ~ 10 years.

• B. Computer software

• Computer software is stated at cost and amortised on a straight-line basis over its estimated useful life of 3 ~ 10 years.

(19) Impairment of non-financial assets

• A. The Company assesses at each balance sheet date the recoverable amounts of those assets where there is an indication that they are impaired. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell or value in use. Except for goodwill, when the circumstances or reasons for recognising impairment loss for an asset in prior years no longer exist or diminish, the impairment loss is reversed. The increased carrying amount due to reversal should not be more than what the depreciated or amortised historical cost would have been if the impairment had not been recognised.

• B. The recoverable amounts of goodwill has not yet been available for use are evaluated periodically. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. Impairment loss of goodwill previously recognised in profit or loss shall not be reversed in the following years.

• C. For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the cash-generating units, or groups of cash-generating units, that is/are expected to benefit from the synergies of the business combination. Each unit or group of units to which the goodwill is allocated represents the lowest level within the entity at which the goodwill is monitored for internal management purposes. Goodwill is monitored at the operating segment level.

(20) Borrowings

• Borrowings comprise short-term bank borrowings. Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortised cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognised in profit or loss over the period of the borrowings using the effective interest method.

(21) Notes and accounts payable

• A. Accounts payable are liabilities for purchases of raw materials, goods or services and notes

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payable are those resulting from operating and non-operating activities.

• B. The short-term notes and accounts payable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

• (22) Derecognition of financial liabilities

A financial liability is derecognised when the obligation in the contract is discharged or cancelled or expires.

(23) Employee benefits

• A. Short-term employee benefits

Short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in respect of service rendered by employees in a period and should be recognised as expenses in that period when the employees render service.

• B. Pensions

• (a) Defined contribution plan

For defined contribution plan, the contributions are recognised as pension expenses when they are due on an accrual basis. Prepaid contributions are recognised as an asset to the extent of a cash refund or a reduction in the future payments.

• (b) Defined benefit plan

  • i. Net obligation under a defined benefit plan is defined as the present value of an amount of pension benefits that employees will receive on retirement for their services with the Company in current period or prior periods. The liability recognised in the balance sheet in respect of defined benefit pension plan is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets. The net defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The rate used to discount is determined by using interest rates of government bonds of a currency and term consistent with the currency and term of the employment benefit obligations.

  • ii. Remeasurements arising on defined benefit plans are recognised in other comprehensive income in the period in which they arise and are recorded as retained earnings.

• C. Employees’ compensation and directors’ remuneration

• Employees’ compensation and directors’ remuneration are recognised as expenses and liability, provided that such recognition is required under legal or constructive obligation and those amounts can be reliably estimated. Any difference between the resolved amounts and the subsequently actual distributed amounts is accounted for as changes in estimates. If employees’ compensation is distributed by shares, the Company calculates the number of shares based on the closing price at the previous day of the board meeting resolution.

(24) Income tax

• A. The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or

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items recognised directly in equity, in which cases the tax is recognised in other comprehensive income or equity.

• B. The current income tax expense is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Company operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in accordance with applicable tax regulations. It establishes provisions where appropriate based on the amounts expected to be paid to the tax authorities. An additional tax is levied on the unappropriated retained earnings and is recorded as income tax expense in the year the stockholders resolve to retain the earnings.

• C. Deferred tax is recognised, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the parent company only balance sheet. However, the deferred tax is not accounted for if it arises from initial recognition of goodwill or of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred tax is provided on temporary differences arising on investments in subsidiaries and associates, except where the timing of the reversal of the temporary difference is controlled by the Company and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax is determined using tax rates and laws that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled.

• D. Deferred tax assets are recognised only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised. At each balance sheet date, unrecognised and recognised deferred tax assets are reassessed.

• E. Current income tax assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. Deferred tax assets and liabilities are offset on the balance sheet when the entity has the legally enforceable right to offset current tax assets against current tax liabilities and they are levied by the same taxation authority on either the same entity or different entities that intend to settle on a net basis or realise the asset and settle the liability simultaneously

• F. A deferred tax asset shall be recognised for the carryforward of unused tax credits resulting from research and development expenditures, etc., to the extent that it is possible that future taxable profit will be available against which the unused tax credits can be utilised.

• (25) Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares are shown in equity as a deduction, net of tax, from the proceeds.

(26) Dividends

Cash dividends are recorded as liabilities in the Company’s financial statements in the period in

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which they are resolved by the Board of Directors. Stock dividends are recorded as stock dividends to be distributed in which they are resolved by the Company’s shareholders and are reclassified to ordinary shares on the effective date of new shares issuance.

• (27) Revenue recognition

• A. Sales of goods

  • (a) The Company manufactures and sells human pharmaceuticals, etc. Revenue is recognised when control of the products has transferred, being when the products are delivered to the customer, the customer has full discretion over the channel and price to sell the products, and there is no unfulfilled obligation that could affect the customer’s acceptance of the products. Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the customer, and either the customer has accepted the products in accordance with the sales contract, or the Company has objective evidence that all criteria for acceptance have been satisfied.

  • (b) Goods are often sold with discounts and allowances based on the price spread given by the National Health Insurance. Revenue is recognised based on the price specified in the contract, net of the estimated sales discounts and allowances. Reversal of accounts receivable is recognised for expected sales discounts and allowances payable to customers in relation to sales made until the end of the reporting period. The terms of sales transactions are set individually with each clients and usually are made with cash payment in 2 months after billings, or to obtain cheques with a maturity of 4~6 months upon billings. As the time interval between the transfer of committed goods or service and the payment of customer does not exceed one year, the Company does not adjust the transaction price to reflect the time value of money.

  • (c) A receivable is recognised when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due.

• B. Rendering of services

  • (a) The Company provides processing services. Revenue from providing services is recognised in the accounting period in which the services are rendered. For fixed price contracts, revenue is recognised based on the actual service provided to the end of the balance sheet date as a proportion of the total services to be provided.

  • (b) The Company’s estimate about revenue, costs and progress towards complete satisfaction of a performance obligation is subject to a revision whenever there is a change in circumstances. Any increase or decrease in revenue or costs due to an estimate revision is reflected in profit or loss during the period when the management become aware of the changes in circumstances.

• C. Incremental costs of obtaining a contract

  • Given that the contractual period lasts less than one year, the Company recognises the

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incremental costs of obtaining a contract as an expense when incurred although the Company expects to recover those costs.

(28) Government grants

Government grants are recognised in profit or loss on a systematic basis over the periods in which the Company recognises expenses for the related costs for which the grants are intended to compensate.

5. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF

ASSUMPTION UNCERTAINTY

The preparation of these consolidated financial statements requires management to make critical judgements in applying the Group’s accounting policies and make critical assumptions and estimates concerning future events. Assumptions and estimates may differ from the actual results and are continually evaluated and adjusted based on historical experience and other factors. Such assumptions and estimates have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year; and the related information is addressed below:

(1) Critical judgements in applying the Company’s accounting policies

None.

(2) Critical accounting estimates and assumptions

• A. Valuation of inventories

• (a) As inventories are stated at the lower of cost and net realisable value, the Company must determine the net realisable value of inventories on balance sheet date using judgements and estimates. Due to the influence of different market demand and expiration date, etc., the Company evaluates the amounts of normal inventory consumption, obsolete inventories or inventories without market selling value on balance sheet date, and writes down the cost of inventories to the net realisable value. Such an evaluation of inventories is principally based on the demand for the products within the specified period in the future. Therefore, there might be material changes to the valuation.

• (b) As of December 31, 2023, the carrying amount of inventories was $ 704,154.

• B. Financial assets - fair value measurement of unlisted stocks without active market

• (a) The fair value of unlisted stocks held by the Company that are not traded in an active market is determined considering those companies’ recent funding raising activities and technical development status, fair value assessment of other companies of the same type, market conditions and other economic indicators existing on balance sheet date. Any changes in these judgements and estimates will impact the fair value measurement of these unlisted stocks. Please refer to Note 12(3) for the financial instruments fair value information.

• (b) As of December 31, 2023, the carrying amount of unlisted stocks without active market was $112,434.

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6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

TAILS OF SIGNIFICANT ACCOUNTS Cash and cash equivalents
Cash: Revolving funds and petty cash Checking accounts and demand deposits Cash equivalents: Time deposits Repurchase bonds	December31,2023 8,542 $ 236,115 244,657 452,693 18,424 471,117 715,774 $	December31,2022 6,523 $ 121,299
		127,822
		648,054 82,376
		730,430
		858,252 $

• A. The Company 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.

• B. As of December 31, 2023 and 2022, the carrying amount of more than 3-month time deposits －

• (listed as “Financial assets at amortised cost - current”) was $8,000 and $ , respectively.

• C. As of December 31, 2023 and 2022, the Company has no cash and cash equivalents pledged to others.

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

others. Financial assets at fair value through profit or loss
	December	31,2023	December	31,2022
Current items:
Financial assets mandatorily measured at fair
value through profit or loss
Unlisted stocks	$	12,000	$	12,000
Valuation adjustment	(	12,000)	(	12,000)
	$	-	$	-
Non-current items:
Financial assets mandatorily measured at fair
value through profit or loss
Emerging stocks	$	1,603	$	1,603
Unlisted stocks		11,300		11,300
		12,903		12,903
Valuation adjustment	(	1,299)	(	2,342)
	$	11,604	$	10,561

• A. The Company recognised net gain (listed as “Other gains and losses”) of $1,043 and $712 for the years ended December 31, 2023 and 2022, respectively.

• B. As of December 31, 2023 and 2022, the Company has no financial assets at fair value through

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profit or loss pledged to others.

• C. Information relating to credit risk of financial assets at fair value through profit or loss is provided in Note 12(2), ‘Financial instruments’.

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

Equity instruments Listed stocks Unlisted stocks Valuation adjustment	December 31, 2023 129,473 $ 63,295 192,768 151,069 343,837 $	December 31, 2022
		163,989 $ 63,295 227,284 21,082
		248,366 $

• A. The Company has elected to classify equity instruments that are considered to be strategic investments as financial assets at fair value through other comprehensive income. Without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the financial assets at fair value through other comprehensive income held by the Company was its book value.

• B. The Company disposed financial assets at fair value through other comprehensive income in the amount of $75,964 and $23,305 for the years ended December 31, 2023 and 2022, respectively. This resulted in cumulative gain on disposal amounting to $22,465 and $5,958, which was reclassified to retained earnings for the years ended December 31, 2023 and 2022, respectively.

• C. The Company recognised $152,452 and ($14,235) in other comprehensive income in relation to fair value change for the years ended December 31, 2023 and 2022, respectively.

• D. The Company recognised dividend income of $10,034 and $9,604 in profit or loss (listed as ‘Other income’) in relation to the financial assets at fair value through other comprehensive income for the years ended December 31, 2023 and 2022, respectively.

• E. As of December 31, 2023 and 2022, the Company has no financial assets at fair value through other comprehensive income pledged to others.

• F. Information relating to credit risk of financial assets at fair value through other comprehensive income is provided in Note 12(2), ‘Financial instruments’.

(4) Notes and accounts receivable

Notes and accounts receivable
	December	31,2023	December	31,2022
Notes receivable	$	109,055	$	100,411
Accounts receivable	$	582,942	$	537,951
Less: Allowance for uncolletible accounts	(	4,537)	(	4,256)
	$	578,405	$	533,695

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A. The ageing analysis of notes and accounts receivable is as follows:

Notes receivable: Within the credit period Accounts receivable: Within the credit period Overdue up to 90 days Overdue 91 to 180 days Overdue 181 to 270 days Overdue over 270 days	December31,2023 109,055 $ 567,416 $ 15,290 212 - 24 582,942 $	December31,2022 100,411 $ 501,902 $ 14,596 21,451 2 - 537,951 $

The above ageing analysis was based on days overdue.

• B. As of December 31, 2023 and 2022, notes and accounts receivable were all from contracts with customers. As of January 1, 2022, the balance of receivables from contracts with customers amounted to $645,559.

• C. Without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the Company’s notes and accounts receivable were its book value.

• D. As of December 31, 2023 and 2022, the Company has no notes and accounts receivable pledged to others.

• E. Information relating to credit risk of notes and accounts receivable is provided in Note 12(2), ‘Financial instruments’.

(5) Other receivables

‘Financial instruments’. Other receivables
Claims receivable Others	December 31, 2023 - $ 11,314 11,314 $	December 31, 2022
		61,693 $ 10,597
		72,290 $

• －

• (Note) The Company was affected by the fire incident in the neighbouring subsidiary Syn-Tech Chem & Pharm Co., Ltd. (Syn-Tech) on May 20, 2021, which resulted in the damage of certain property, plant and equipment, and inventories and therefore interrupting part of the operations. The Company had derecognised some damaged property, plant and equipment and inventories amounting to $61,693 and $4,608, respectively. The total loss as a result of the fire incident was $66,301 for the year ended December 31, 2021.

The Company had obtained property insurance for its property, plant and equipment. The Company has inspected some purchasing contract of the assets and after consideration of Consumer Price Index, calculated the replacement cost that could be covered by the insurance based on external information. The Company recognised indemnity income at $66,301 limited to the loss of each property for the year ended December 31, 2021. The insurance company

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had checked the damaged property in June 2023 and paid insurance claims in the amount of $109,132. The Company recognised the difference of $42,831 between the actual indemnity income and original estimated insurance claims as fire claims income (Listed as “Other income”) in 2023.

(6) Inventories

income”) in 2023. Inventories
Merchandise Raw materials Supplies Work in process Finished goods Merchandise Raw materials Supplies Work in process Finished goods	Allowance for Cost valuation loss 49,060 $ 25) ($ 225,052 5,550) ( 42,447 1,044) ( 75,717 842) ( 328,267 8,928) ( 720,543 $ 16,389) ($ December31,2023 December31,2022	Book value
		49,035 $ 219,502 41,403 74,875 319,339 704,154 $
	Allowance for Cost valuation loss 48,366 $ 44) ($ 185,304 2,861) ( 37,174 550) ( 76,836 - 227,347 9,174) ( 575,027 $ 12,629) ($	Bookvalue
		48,322 $ 182,443 36,624 76,836 218,173 562,398 $

The cost of inventories recognised as expenses for the year:

		Forthe years ended	Forthe years ended	December31,
		2023		2022
Cost of goods sold	$	1,483,859	$	1,443,966
Loss on scrapped inventories		10,615		13,673
Provision (reversal of allowance) for inventory market
price decline (Note)		3,760	(	3,807)
Gain on physical inventory	(	985)	(	741)
	$	1,497,249	$	1,453,091

(Note) For the year ended December 31, 2022, the Company reversed a previous inventory writedown which was accounted for as reduction of operating costs as these items were subsequently sold or disposed.

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(7) Investments accounted for under equity method

A. Movements of investments accounted for under equity method:

		Forthe years ended	Forthe years ended	December31,	December31,
		2023			2022
At January 1	$	2,820,888		$	2,413,208
Acquisition of investments accounted for under
equity method (Note)		5,578			260,190
Disposal of investments accounted for under
equity method		-	(		9,156)
Share of profit or loss of investments accounted
for under equity method		202,268			205,039
Earnings distribution of investments accounted
for under equity method	(	101,283)	(		74,066)
Capital surplus－Difference between
the price for acquisition or disposal of
subsidiaries and carrying amount		-			3,521
Capital surplus－Changes in net equity of
associates and joint ventures accounted
for under equity method		3,281			3,744
Capital surplus－Overdue cash dividends payable
of subsidiaries		65			46
Other equity interest－Financial statements
translation differences of foreign operations	(	970)			14,492
Other equity interest－Unrealised gain or loss
on valuation of financial assets		95			95
Retained earnings－Remeasurement of defined
benefit plan		400			3,775
At December 31	$	2,930,322		$	2,820,888
	December31,2023		December31,2022
Subsidiaries	$	2,654,123		$	2,553,404
Associates		276,199			267,484
	$	2,930,322		$	2,820,888

(Note) The Company implements its work-division and resource integration, to enhance competitiveness and business performance through spin-off of its synthesis department to － its subsidiary Syn-Tech Chem & Pharm Co., Ltd. (Syn-Tech) after the resolution by the Board of Directors on March 16, 2021. The Company will receive newly issued common stock of Syn-Tech as consideration. The effective date was set on July 1, 2022. The information on the effective date is as follows:

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				July1,2022
Assets acquired from spin-off:
Cash			$	6,973
Investments accounted for under equity method				208,627
			$	215,600
Identifiable assets and liabilities of the synthesis department:
Inventories			$	29,790
Other current assets				19,926
Property, plant and equipment				119,962
Other non-current assets				60,163
Current liabilities			(	22,976)
			$	206,865
Difference between consideration received and identifiable net
asset under spin-off
(Listed as "Capital surplus - additional paid-in capital")			$	8,735
Details of investments accounted for under equity	method are	as follows:
	December31,2023		December31,2022
Standard Pharmaceutical Co., Ltd.	$	179,272	$	181,720
Chia Scheng International Co., Ltd. (Note)		11,363		11,003
Standard Chem. & Pharm. Philippines, Inc.		3,996		314
Inforight Technology Co., Ltd.		7,666		4,212
Souriree Biotech & Pharm. Co., Ltd.		50,404		41,483
Multipower Enterprise Corp.		324,570		337,397
Advpharma Inc.		271,699		266,798
Syngen Biotech Co., Ltd.		975,993		910,035
Syn-Tech Chem. & Pharm. Co., Ltd.		784,589		758,751
Ho Yao Biopharm Co., Ltd.		43,286		38,417
Shanghai Standard Pharmaceuticals Co., Ltd.		1,285		3,274
We Can Medicines Co., Ltd.		243,423		235,502
Taiwan Biosim Co., Ltd.		32,776		31,982
	$	2,930,322	$	2,820,888

B. Details of investments accounted for under equity method are as follows:

(Note) Formerly named as ‘Chia Scheng Investment Co., Ltd.’ and the name was changed since October 12, 2023.

C. Information on the Company's subsidiaries is provided in Note 4(3) of the Company's 2023 consolidated financial statements.

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D. Associate:

(a) The basic information of the associate that is material to the Company is as follows:

		Shareholding ratio
	Principal place	December31,
Company name	of business	2023 2022
We Can Medicines Co., Ltd.	Taiwan	32.89% 32.89%

• (b) The summarised financial information of the associate that is material to the Company is as follows:

• i. Balance sheets

lows: Balance sheets
	December31,2023		December31,2022
Current assets	$	1,291,531	$	1,154,634
Non-current assets		1,569,322		1,421,200
Current liabilities	(	1,045,095)	(	900,340)
Non-current liabilities	(	999,411)	(	883,805)
Total net assets	$	816,347	$	791,689
Share in associate's net assets	$	268,497	$	260,387
Unrealised gain from transactions
with associate	(	25,074)	(	24,885)
Carrying amount of the associate	$	243,423	$	235,502

ii. Statements of comprehensive income

Statements of comprehensive income
Revenue Net income for the year Total comprehensive income for the year	For the years ended	December 31,
	2023 3,122,894 $ 14,803 $ 14,683 $	2022 3,302,732 $
		100,054 $
		103,045 $

• (c) As of December 31, 2023 and 2022, the carrying amount of the Company’s individually immaterial associates amounted to $ 32,776 and $31,982, respectively. The share in associate’s financial performance is as follows:

financial performance is as follows:
Net income for the year Total comprehensive income for the year	For the years ended	December 31,
	2023 794 $ 794 $	2022
		1,370 $
		1,370 $

• E. For the years ended December 31, 2023 and 2022, the details of the Company’s equity transactions are provided in Note 7, “ Related party transactions”.

• F. As of December 31, 2023 and 2022, the Company has no investments accounted for under equity method pledged to others.

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(8) Property, plant and equipment

AtJanuary1,2023 Cost Accumulated depreciation For the year ended December31,2023 At January 1 Additions-cost Transfer-cost (Note 1) Transfer-accumulated depreciation (Note 1) Depreciation Disposals-cost Disposals-accumulated depreciation At December 31 At December31,2023 Cost Accumulated depreciation	Utility Transportation Office Other Construction Land Buildings Machinery equipment equipment equipment equipment inprocess Total 321,069 $ 934,290 $ 808,676 $ 136,153 $ 17,914 $ 35,813 $ 341,099 $ 12,788 $ 2,607,802 $ - 572,042) ( 667,360) ( 114,427) ( 14,512) ( 27,625) ( 208,781) ( - 1,604,747) ( 321,069 $ 362,248 $ 141,316 $ 21,726 $ 3,402 $ 8,188 $ 132,318 $ 12,788 $ 1,003,055 $ 321,069 $ 362,248 $ 141,316 $ 21,726 $ 3,402 $ 8,188 $ 132,318 $ 12,788 $ 1,003,055 $ - 9,263 13,439 784 1,115 3,301 4,256 22,972 55,130 - 30,735 16,819 212 30) ( 249 14,420 29,424) ( 32,981 - - - - 70 70) ( - - - - 25,100) ( 38,244) ( 6,102) ( 1,042) ( 2,441) ( 23,619) ( - 96,548) ( - 2,752) ( 869) ( 481) ( 284) ( 816) ( 4,200) ( - 9,402) ( - 2,752 869 481 284 816 4,200 - 9,402 321,069 $ 377,146 $ 133,330 $ 16,620 $ 3,515 $ 9,227 $ 127,375 $ 6,336 $ 994,618 $ 321,069 $ 971,536 $ 838,065 $ 136,668 $ 18,715 $ 38,547 $ 355,575 $ 6,336 $ 2,686,511 $ - 594,390) ( 704,735) ( 120,048) ( 15,200) ( 29,320) ( 228,200) ( - 1,691,893) ( 321,069 $ 377,146 $ 133,330 $ 16,620 $ 3,515 $ 9,227 $ 127,375 $ 6,336 $ 994,618 $	Total

(Note 1) Including transfer of $35,115 from “Prepayments for equipment” and transfer of $2,134 to “Expense”.

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At January1,2022 Cost Accumulated depreciation For the year ended December31,2022 At January 1 Additions-cost Transfer-cost (Note 1) Transfer-accumulated depreciation (Note 1) Depreciation Spin-off -cost (Note 2) Fire lo ss-accumulated depreciation (Note 2) Disposals-cost Disposals-accumulated depreciation At December 31 At December 31, 2022 Cost Accumulated depreciation	Utility Transportation Office Other Construction Land Buildings Machinery equipment equipment equipment equipment inprocess Total 314,060 $ 890,918 $ 848,038 $ 148,329 $ 20,579 $ 33,981 $ 328,932 $ 33,815 $ 2,618,652 $ - 572,212) ( 692,601) ( 116,688) ( 15,422) ( 26,009) ( 229,306) ( - 1,652,238) ( 314,060 $ 318,706 $ 155,437 $ 31,641 $ 5,157 $ 7,972 $ 99,626 $ 33,815 $ 966,414 $ 314,060 $ 318,706 $ 155,437 $ 31,641 $ 5,157 $ 7,972 $ 99,626 $ 33,815 $ 966,414 $ 90 15,445 13,262 - 909 1,434 45,538 95,115 171,793 6,919 64,804 23,699 - - 894 12,891 33,051) ( 76,156 - 1,148 - - - - - - 1,148 - 27,080) ( 34,289) ( 6,346) ( 1,271) ( 1,975) ( 19,698) ( - 90,659) ( - 24,620) ( 64,230) ( 12,176) ( 3,140) ( 282) ( 31,792) ( 83,091) ( 219,331) ( - 14,449 48,171 8,607 1,747 145 26,250 - 99,369 - 12,257) ( 12,093) ( - 434) ( 214) ( 14,470) ( - 39,468) ( - 11,653 11,359 - 434 214 13,973 - 37,633 321,069 $ 362,248 $ 141,316 $ 21,726 $ 3,402 $ 8,188 $ 132,318 $ 12,788 $ 1,003,055 $ 321,069 $ 934,290 $ 808,676 $ 136,153 $ 17,914 $ 35,813 $ 341,099 $ 12,788 $ 2,607,802 $ - 572,042) ( 667,360) ( 114,427) ( 14,512) ( 27,625) ( 208,781) ( - 1,604,747) ( 321,069 $ 362,248 $ 141,316 $ 21,726 $ 3,402 $ 8,188 $ 132,318 $ 12,788 $ 1,003,055 $	Total

(Note 1) Including transfer of $94,299 from “Prepayments for equipment” and transfer of $16,995 to “Investment property, net”. (Note 2) Refer to Note 6(7), “Investments accounted for under equity method”.

~36~

• A. As of December 31, 2023 and 2022, the carrying amount of buildings held for operating leases are as follows:

as follows:
	December 31, 2023		December 31, 2022
Buildings	$	81	84 $
B. Amount of borrowing costs capitalised as part of property, plant and equipment and the interest
rates for such capitalisation for the years	ended December	31, 2023 and 2022	are as follows:
		Forthe years endedDecember31,
		2023	2022
Capitalised interest payments	$	374	638 $
Interest rate		1.42%～1.77%	0.73%～1.02%

• C. Refer to Note 6(7), ‘Investments accounted for under equity method’ for more information regarding property, plant and equipment transferred due to spin-off of synthesis department in July 2022.

• D. As of December 31, 2023 and 2022, the Company has no property, plant and equipment pledged to others.

• －

• (9) Leasing arrangements lessee

• A. The Company leases various assets including land and buildings. Rental contracts are typically made for periods of 2 ~ 11 years. 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.

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

Land Buildings Transportation equipment Land Buildings Transportation equipment	December31,2023 December31,2022 Carryingamount Carryingamount 3,063 $ 3,449 $ 9,035 12,262 878 - 12,976 $ 15,711 $ For theyears ended December31,	December31,2022
		Carryingamount
	2023 Depreciation 1,005 $ 4,084 265 5,354 $	2022
		Depreciation
		1,005 $ 3,762 - 4,767 $

• C. The additions to right-of-use assets were $2,619 and $2,725 for the years ended December 31, 2023 and 2022, respectively.

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

For the years ended December 31,

Items affecting profit or loss Interest expense on lease liabilities Expense on short-term lease contract Expense on leases of low-value assets Gain from lease modification	2023 2022 169 $ 197 $ 535 391 240 458 - 8) (

• E. The Company’s total cash outflow for leases was $6,334 and $5,888 for the years ended December 31, 2023 and 2022, respectively.

(10) Investment property, net

At January1,2023 Cost Accumulated depreciation For the year ended December 31, 2023 At January 1 Depreciation At December 31 At December31,2023 Cost Accumulated depreciation	Land Buildings Total 59,483 $ 8,731 $ 68,214 $ - 5,227) ( 5,227) ( 59,483 $ 3,504 $ 62,987 $ 59,483 $ 3,504 $ 62,987 $ - 214) ( 214) ( 59,483 $ 3,290 $ 62,773 $ 59,483 $ 8,731 $ 68,214 $ - 5,441) ( 5,441) ( 59,483 $ 3,290 $ 62,773 $

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==> picture [482 x 266] intentionally omitted <==

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

Land Buildings Total
At January 1, 2022
Cost $ 43,295 $ 6,776 $ 50,071
-
Accumulated depreciation ( 3,864) ( 3,864)
$ 43,295 $ 2,912 $ 46,207
For the year ended December 31, 2022
At January 1 $ 43,295 $ 2,912 $ 46,207
Transfer-cost (Note) 16,188 1,955 18,143
-
-accumulated depreciation (Note) ( 1,148) ( 1,148)
-
Depreciation ( 215) ( 215)
At December 31 $ 59,483 $ 3,504 $ 62,987
At December 31, 2022
Cost $ 59,483 $ 8,731 $ 68,214
-
Accumulated depreciation ( 5,227) ( 5,227)
$ 59,483 $ 3,504 $ 62,987
----- End of picture text -----

(Note) Transferred from “Property, plant and equipment”.

• A. Rental income from investment property (listed as “Other income”) and direct operating expenses arising from investment property are as follows:

arising from investment property are as follows:
Rental income from investment property Direct operating expenses of investment properties with rental income	2023 5,746 $ 214 $ For theyears ended	2022 December31,
		5,189 $
		215 $

• B. The fair value of the investment property held by the Company as of December 31, 2023 and 2022 was $ 116,501 and $116,656, respectively, which was valued from the actual real estate price registered on the Department of Land Administration website. The valuation is categorised within Level 2 in the fair value hierarchy.

• C. No borrowing costs were capitalised as part of investment property for the years ended December 31, 2023 and 2022.

• D. As of December 31, 2023 and 2022, the Company has no investment property pledged to others.

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(11) Intangible assets

Intangible assets
			Patents			Software		Total
At January1,2023
Cost		$	11,202		$	33,378	$	44,580
Accumulated amortisation	(		10,576)	(		27,630)	(	38,206)
		$	626		$	5,748	$	6,374
Forthe yearendedDecember31,2023
At January 1		$	626		$	5,748	$	6,374
Additions - acquired separately			-			817		817
Amortisation	(		597)	(		2,434)	(	3,031)
At December 31		$	29		$	4,131	$	4,160
AtDecember31,2023
Cost		$	11,202		$	34,195	$	45,397
Accumulated amortisation	(		11,173)	(		30,064)	(	41,237)
		$	29		$	4,131	$	4,160
			Patents			Software		Total
At January1,2022
Cost	$		11,602	$		29,814	$	41,416
Accumulated amortisation	(		10,110)	(		24,681)	(	34,791)
	$		1,492	$		5,133	$	6,625
Forthe yearendedDecember31,2022
At January 1	$		1,492	$		5,133	$	6,625
Additions-acquired separately			-			3,564		3,564
Amortisation	(		866)	(		2,949)	(	3,815)
Spin-off-cost	(		400)			-	(	400)
-accumulated amortisation			400			-		400
At December 31	$		626	$		5,748	$	6,374
AtDecember31,2022
Cost	$		11,202	$		33,378	$	44,580
Accumulated amortisation	(		10,576)	(		27,630)	(	38,206)
	$		626	$		5,748	$	6,374

A. No borrowing costs were capitalised as part of intangible assets for the years ended December 31, 2023 and 2022.

~40~

B. Details of amortisation on intangible assets are as follows:

For the years ended December 31,

	Forthe years ended	December31,
Operating costs Selling expenses General and administrative expenses Research and development expenses	2023 255 $ 587 1,907 282 3,031 $	2022
		226 $ 895 2,498 196
		3,815 $

C. As of December 31, 2023 and 2022, the Company has no intangible assets pledged to others. (12) Short-term borrowings

Short-term borrowings
Unsecured bank borrowings Unsecured bank borrowings	December 31, 2023 Interest rate range 460,000 $ 1.58%～1.66% December 31, 2022 Interest rate range 870,000 $ 1.36%～1.78%	Collateral
		None Collateral
		None

Refer to Note 6(22), ‘Finance costs’ for more information regarding interest expenses recognised in profit or loss by the Company for the years ended December 31, 2023 and 2022.

(13) Pensions

• A. The Company has a defined benefit pension plan in accordance with the Labour Standards Law, covering all regular employees’ service years prior to the enforcement of the Labour 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 5% 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 labour 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. Related information of pension paid under aforementioned plan is as follows:

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(a) The amounts recognised in the balance sheet are as follows:

(b)

Movements in defined benefit liability are as follows: December31,2023 December31,2022 Present value of defined benefit obligations 431,132) ($ 450,254) ($ Fair value of plan assets 292,075 302,484 Net defined benefit liability – non-current 139,057) ($ 147,770) ($ Present value of defined benefit Fair value of Net defined obligation plan assets benefit liability For the year ended December31,2023 At January 1 450,254) ($ 302,484 $ 147,770) ($ Current service cost 5,926) ( - 5,926) ( Interest (expense) income 5,487) ( 3,699 1,788) ( Effect of pension plan curtailment 243 - 243 461,424) ( 306,183 155,241) ( Remeasurements: Return on plan assets (excluding amounts included in interest income or expense) - 2,761 2,761 Change in financial assumptions 1,776) ( - 1,776) ( Experience adjustments 1,910 - 1,910 134 2,761 2,895 Pension fund contribution - 9,159 9,159 Paid pension 30,158 26,028) ( 4,130 At December 31 431,132) ($ 292,075 $ 139,057) ($

~42~

	Present value of	Present value of
	defined benefit			Fair value of			Net defined
		obligation		plan assets		benefit liability
For the year ended
December31,2022
At January 1	($	494,867)	$	298,533	($		196,334)
Current service cost	(	3,558)		-	(		3,558)
Interest (expense) income	(	3,420)		2,081	(		1,339)
Effect of pension plan curtailment		725		-			725
Effect of pension plan settlement		4,713		-			4,713
	(	496,407)		300,614	(		195,793)
Remeasurements:
Return on plan assets (excluding
amounts included in interest
income or expense)		-		23,254			23,254
Change in financial assumptions		24,483		-			24,483
Experience adjustments	(	19,822)		-	(		19,822)
		4,661		23,254			27,915
Pension fund contribution		-		12,454			12,454
Paid pension		41,492	(	33,838)			7,654
At December 31	($	450,254)	$	302,484	($		147,770)

(c) The Bank of Taiwan was commissioned to manage the Fund of the Company’s defined benefit pension plan in accordance with the Fund’s annual investment and utilisation plan and the “Regulations for Revenues, Expenditures, Safeguard and Utilisation of the Labour Retirement Fund” (Article 6: The scope of utilisation for the Fund includes deposit in domestic or foreign financial institutions, investment in domestic or foreign listed, over-thecounter, or private placement equity securities, investment in domestic or foreign real estate securitisation products, etc.). With regard to the utilisation of the Fund, its minimum earnings in the annual distributions on the final financial statements shall be no less than the earnings attainable from the amounts accrued from two-year time deposits with the interest rates offered by local banks. If the earnings is less than aforementioned rates, government shall make payment for the deficit after being authorised by the Regulator. The Company has no right to participate in managing and operating that fund and hence the Company is unable to disclose the classification of plan asset fair value in accordance with IAS 19 paragraph 142. The fair value of plan assets as of December 31, 2023 and 2022 is given in the Annual Labour Retirement Fund Utilisation Report announced by the government.

~43~

(d) The principal actuarial assumptions used were as follows:

Discount rate Future salary increases	Forthe years endedDecember31,	Forthe years endedDecember31,
	2023 1.20% 2.90%	2022
		1.25% 2.90%

For the years ended December 31, 2023 and 2022, assumptions regarding future mortality rate are both set based on the 6th Taiwan Standard Ordinary Experience Mortality Table. Because the main actuarial assumption changed, the present value of defined benefit obligation is affected. The analysis was as follows:

Discount rate Future salary increases Increase 0.25% Decrease 0.25% Increase 0.25% Decrease 0.25% December 31, 2023 Effect on present value of defined benefit obligation ($ 8,761) $ 9,031 $ 8,858 ($ 8,639) December 31, 2022 Effect on present value of defined benefit obligation ($ 9,652) $ 9,963 $ 9,777 ($ 9,522)

The sensitivity analysis above is based on one assumption which changed while the other conditions remain unchanged. In practice, more than one assumption may change all at once. The method of analysing sensitivity and the method of calculating net pension liability in the balance sheet are the same.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the previous year.

• (e) Expected contributions to the defined benefit pension plan of the Company for the year ending December 31, 2024 amount to $ 9,182.

• (f) As of December 31, 2023, the weighted average duration of that retirement plan is 8 years. The analysis of timing of the future pension payment was as follows:

The analysis of timing of the future pension payment was as follows:
Within 1 year 2-5 years Over 5 years	16,702 $ 113,263 345,611
	475,576 $

B. Effective July 1, 2005, the Company has established a defined contribution pension plan (the “New Plan”) under the Labour Pension Act (the “Act”), covering all regular employees with R.O.C. nationality. Under the New Plan, the Company contributes monthly an amount based on 6% of the employees’ monthly salaries and wages to the employees’ individual pension accounts at the Bureau of Labour Insurance. The benefits accrued are paid monthly or in lump sum upon

~44~

termination of employment. The pension costs under the defined contribution pension plan of the Company for the years ended December 31, 2023 and 2022 were $25,959 and $24,137, respectively.

(14) Share capital – common stock

• A. Movements in the number of the Company’s ordinary shares outstanding are as follows (in thousands of shares):

thousands of shares):
	Forthe years endedDecember31,
	2023 2022
Beginning and ending balance	178,696 178,696

• B. As of December 31, 2023, the Company’s authorised capital was $2,000,000, and the paid-in capital was $1,786,961, consisting of 178,696 thousand shares of ordinary share, with a par value of $10 (in dollars) per share. Shares can be issued several times. All proceeds from shares issued have been collected.

(15) Capital surplus

• A. 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 capitalised 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.

• B. The Company implements its work-division and resource integration, to enhance competitiveness －

• and business performance through spin-off of its synthesis department to the subsidiary SynTech Chem & Pharm Co., Ltd. (Syn-Tech) after the resolution by the Board of Directors on March 16, 2021. The Company received 4,532 thousand shares issued from the capital increase of Syn-Tech with total value of $341,000 as the consideration. The transaction pertains to the reorganisation within the Group. As the difference between the net asset value of the synthesis department and net equity value was $8,735, an increase in capital surplus was recognised. The abovementioned transaction had been completed on July 1, 2022.

• C. As the Company’s associate, We Can Medicines Co., Ltd., issued employee stock options resulting in changes in net equity. The Company recognised the increase in net equity proportionately to its ownership amounting to $3,281 and $1,351 for the years ended December 31, 2023 and 2022, respectively.

• D. For the year ended December 31, 2022, the investment accounted for under equity method of the Company’s subsidiary, Geneferm Biotechnology Co., Ltd., exercised employee stock options resulting in an increase in the equity to Syngen Biotech Co., Ltd.. The Company recognised the increase in equity proportionately of $2,393 and was recorded under capital surplus. There was no such transaction for the year ended December 31, 2023.

~45~

• E. For the years ended December 31, 2023 and 2022, pursuant to the Business letter No. 10602420200 issued by the Ministry of Economic Affairs, the Company reclassified dividends payable of $56 and $125, respectively, which were expired and not collected by the shareholders, to capital surplus. For the years ended December 31, 2023 and 2022, pursuant to the aforementioned letter, the subsidiary of the Company, Syngen Biotech Co., Ltd., reclassified dividends payable of $140 and $98, respectively, which were expired and not collected by the shareholders, to capital surplus, resulting to an increase in the equity attributable to owners of parent by $65 and $46, respectively.

• F. Refer to Note 6(27), ‘Transactions with non-controlling interest’ for more information regarding changes of capital surplus due to transactions with non-controlling interest.

• (16) Retained earnings

• A. Within the limit, 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.

• B. Under the Company’s Articles of Incorporation, as the Company operates in a volatile business environment and is in the stable growth stage, the Board of Directors takes into consideration the Company’s future capital needs, long-term financial planning and shareholders’ needs for cash inflow. The Company’s earnings, if any, are distributed in the following order:

  • (a) Pay all taxes.

  • (b) Cover accumulated deficit.

  • (c) Appropriate 10% as legal reserve, until such legal reserve amounts to the total paid-in capital.

  • (d) Appropriate or reverse special reserve in accordance with regulations.

  • (e) At least 10% of the remainder and previous unappropriated retained earnings as stockholders’ bonus and cash dividends shall account for at least 20% of total dividends distributed. If the cash dividend is below $0.5 (in dollars) per share, the Company can distribute stock dividends instead of cash dividends upon resolution of the shareholders.

  • When the shareholders bonus is distributed in stock dividend, it shall be allocated according to the resolutions of the shareholders during their meeting. The company authorised the Board of Directors to process resolution resolved by a majority vote at the meeting attended by two-thirds of the total number of directors: all or part of distributed dividends and bonus, and capital reserve/legal surplus reserve shall be distributed by cash. The result shall be reported to the shareholders’ meeting.

• 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. The Company’s debit balance on other equity items as of

~46~

December 31, 2022 and 2021 were $115,935 and $110,329, respectively, which have been set aside as special reserve in accordance with the regulations and shall not be distributed as dividends.

• D. As resolved by the Board of Directors on March 15, 2022 and March 14, 2023, the Company recognised cash dividends distributed to owners amounting to $446,740 ($2.5 (in dollars) per share) and $446,740 ($2.5 (in dollars) per share) for the appropriations of 2021 and 2022 earnings, respectively. On February 27, 2024, the Board of Directors resolved for the distribution of dividends from 2023 earnings of $482,479 ($2.7 (in dollars) per share). Information about the distribution of dividends by the Company as proposed by the Board of Directors will be posted in the “Market Observation Post System” at the website of the Taiwan Stock Exchange.

(17) Other equity

Other equity
At January 1 Currency translation differences - Company Valuation adjustment - Company - Subsidiaries Valuation adjustment transferred to retained earnings - Company At December 31 At January 1 Currency translation differences - Company Valuation adjustment - Company - Subsidiaries Valuation adjustment transferred to retained earnings - Company At December 31	For theyear ended December 31,2023
	Currency translation		Unrealised gain on valuation of financialassets	Total
		Currency translation	Unrealised gain on valuation of financialassets	Total
	20,974) ($ 14,492 - - - 6,482) ($		89,355) ($ - 14,235) ( 95 5,958) ( 109,453) ($	110,329) ($ 14,492 14,235) ( 95 5,958) ( 115,935) ($

~47~

(18) Operating revenue

• A. The Company derives revenue from the transfer of goods at a point in time and of services over time in the following major product categories and geographical regions:

			Forthe	year	year	endedDecember	31,	2023
			Domestic			International		Total
Revenue from sales of medicine		$	2,426,917		$	431,369	$	2,858,286
Revenue from sales of dietary
supplement			126,609			-			126,609
Others			4,740			-			4,740
		$	2,558,266		$	431,369	$	2,989,635
			Forthe	year		endedDecember	31,	2022
			Domestic			International		Total
Revenue from sales of medicine		$	2,170,984		$	346,257	$	2,517,241
Revenue from sales of dietary
supplement			146,040			20			146,060
Revenue from rendering of
services			1			-			1
Others			49,734			59,168			108,902
		$	2,366,759		$	405,445	$	2,772,204
The Company has recognised the	following revenue-related					contract liabilities:
	December 31, 2023			December31,2022			January		1,2022
Contract liabilities –
sales of medicine	$		34,899	$		35,430	$		40,569

B. The Company has recognised the following revenue-related contract liabilities:

Revenue recognised that was included in the contract liability balance at the beginning of the years ended December 31, 2023 and 2022 were $22,762 and $36,149, respectively.

(19) Interest income

Interest income
Interest income from bank deposits	For theyears ended December31,
	2023 31,593 $	2022
		11,232 $

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(20) Other income

Other income
		Forthe years ended		December31,
		2023		2022
Dividend income	$	10,034	$	9,604
Rental income		6,677		6,620
Fire insurance claim income (Note)		42,831		-
Royalty income		10,362		11,417
Technology transfer income		-		2,842
Research income		4,148		1,811
Government grants income		7,678		5,775
Other income		23,762		18,151
	$	105,492	$	56,220

(Note) Refer to Note 6 (5), ‘Other Receivables’.

(21) Other gains and losses

(Note) Refer to Note 6 (5), ‘Other Receivables’. Other gains and losses Government grants income Other income	7,678 5,775 23,762 18,151 105,492 $ 56,220 $	7,678 5,775 23,762 18,151 105,492 $ 56,220 $	7,678 5,775 23,762 18,151 105,492 $ 56,220 $	7,678 5,775 23,762 18,151 105,492 $ 56,220 $
	For the years ended December 31,
	2023			2022
Net currency exchange gain	$	6,786	77,967 $
Net loss on disposal of property, plant and
equipment		-	(	1,113)
Gain from lease modification		-		8
Net gain on financial assets at fair value
through profit or loss		1,043		712
Other losses	(	216)	(	1,590)
	$	7,613		75,984 $

(22) Finance costs

Finance costs
			Forthe years endedDecember		31,
			2023	2022
Interest expense
Bank borrowings		$	11,105	$	8,262
Lease liabilities			169		197
			11,274		8,459
Less: Capitalisation of qualifying assets	(		374)	(	638)
		$	10,900	$	7,821

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(23) Expenses by nature

Expenses by nature
Employee benefit expenses Employee benefit expenses Depreciation on property, plant and equipment Depreciation on right-of-use assets Amortisation Employee benefit expenses Depreciation on property, plant and equipment Depreciation on right-of-use assets Amortisation Wages and salaries Labour and health insurance expenses Pension costs Directors' remuneration Other personnel expenses Wages and salaries Labour and health insurance expenses Pension costs Directors' remuneration Other personnel expenses	Recognised in Recognised in operating costs operating expenses Total 366,137 $ 427,823 $ 793,960 $ 74,415 22,133 96,548 813 4,541 5,354 4,065 3,750 7,815 445,430 $ 458,247 $ 903,677 $ For theyear ended December31,2023 For the year ended December 31, 2022
	Recognised in Recognised in operating costs operating expenses Total 324,590 $ 398,435 $ 723,025 $ 70,706 19,953 90,659 - 4,767 4,767 4,441 5,164 9,605 399,737 $ 428,319 $ 828,056 $ For theyear ended December31,2023		Total
			723,025 $ 90,659 4,767 9,605
			828,056 $
	Recognised in Recognised in operatingcosts operatingexpenses Total 305,355 $ 360,853 $ 666,208 $ 30,810 29,432 60,242 14,626 18,804 33,430 - 6,931 6,931 15,346 11,803 27,149 366,137 $ 427,823 $ 793,960 $ Forthe yearendedDecember31,2022		Total
			666,208 $ 60,242 33,430 6,931 27,149
			793,960 $
	Recognised in operating costs 277,345 $ 19,616 13,451 - 14,178 324,590 $	Recognised in operating expenses 342,534 $ 28,937 10,145 6,605 10,214 398,435 $	Total
			619,879 $ 48,553 23,596 6,605 24,392
			723,025 $

(24) Employee benefit expenses

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• A. The average number of employees were 810 and 805, which included 7 and 5 non-employee directors for the years ended December 31, 2023 and 2022, respectively.

• B. The average employee benefit expense were $980 and $896, respectively, while average wages and salaries were $830 and $775 for the years ended December 31, 2023 and 2022, respectively. The average wages and salaries has increased by 7% compared to prior year.

• C. The Company has set up an Audit Committee. As a result, there was no supervisors’ remuneration for the years ended December 31, 2023 and 2022.

• D. Directors’ remuneration were reviewed by the Compensation Committee (the Committee) based on the degree of their participation, the value contributed to the Company’s operation, and the average level of the industry. Compensation for executive officers were reviewed by the Committee and resolved by the Board of Directors based on executive officers’ job title, function, contribution, performance, and in consideration of the Company’s future risk, etc. Employee compensation is decided based on individual’s performance, contribution to the Company, performance, the market value of the position, and in consideration of the Company’s future operating risk.

• E. In accordance with the Articles of Incorporation of the Company, a ratio of distributable profit of the current year (pre-tax profit before deducting employees’ compensation and directors’ remuneration), after covering accumulated losses, shall be distributed as employees' compensation and directors’ remuneration. The ratio shall be 1%~10% for employees’ compensation and shall not be higher than 3% for directors’ remuneration. Employees’ compensation will be distributed in the form of shares or cash. Qualification requirements of employees, including the employees of subsidiaries of the company meeting certain specific requirements, are entitled to receive aforementioned stock or cash. The Company may, by a resolution adopted by a majority vote at a meeting of board of directors attended by two-thirds of the total number of directors, have the profit distributable as employees’ compensation distributed in the form of shares or in cash; and in addition thereto a report of such distribution shall be submitted to the shareholders during their meeting.

• F. Employees’ compensation was accrued at $10,108 and $9,436 for the years ended December 31, 2023 and 2022, respectively; while directors’ remuneration was accrued at $3,150 and $3,000 for the years ended December 31, 2023 and 2022, respectively. The aforementioned amounts recognised in salary expenses were estimated and accrued based on the distributable net profit of current year calculated based on the percentage prescribed under the Company’s Articles of Incorporation. As resolved by the Board of Directors on February 27, 2024, the employees’ compensation and directors’ remuneration were $10,076 and $3,124, respectively, and the employees’ compensation will be distributed in the form of cash. The employees’ compensation and directors’ remuneration for 2022 as resolved by the Board of Directors was $12,417, and the employees’ compensation was distributed in the form of cash. The difference between the aforementioned amount and the amount of $12,436 recognised in the 2022 financial statements

~51~

by $19, mainly caused by estimation differences, had been adjusted in the profit or loss for 2023. 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.

(25) Income tax

A. Income tax expense:

(a) Components of income tax expense:

website of the Taiwan Stock Exchange. e tax ome tax expense: Components of income tax expense:
		Forthe years ended		December31,
		2023		2022
Current tax:
Current tax on profits for the year	$	161,764	$	124,883
Tax on undistributed earnings		12,260		854
Over provision of prior year's income tax	(	7,876)	(	27,043)
		166,148		98,694
Deferred tax:
Origination and reversal of temporary differences	(	6,648)		14,117
Income tax expense	$	159,500	$	112,811

(b) The income tax relating to components of other comprehensive income is as follows:

Remeasurement of defined benefit obligation	Forthe years endedDecember31,	Forthe years endedDecember31,
	2023 578 $	2022
		5,583 $

B. Reconciliation between income tax expense and accounting profit:

		For the years ended	For the years ended	December 31,
		2023		2022
Tax calculated based on profit before tax and
statutory tax rate	$	198,877	$	185,644
Effect of amount not allowed to be recognised
under regulations	(	43,761)	(	46,644)
Tax on undistributed earnings		12,260		854
Over provision of prior year's income tax	(	7,876)	(	27,043)
Income tax expense	$	159,500	$	112,811

~52~

C. Amounts of deferred tax assets or liabilities as a result of temporary differences are as follows:

			For	For	the yearended	the yearended	December31,2023	December31,2023	December31,2023	December31,2023
								Recognised
									in other
				Recognised in			comprehensive
		January1			profit or loss				income	December31
Deferred tax assets
Temporary differences:
Bad debts	$		2,803	$		51	$		-	$	2,854
Unrealised loss on inventories
from market value decline			2,526			752			-		3,278
Unrealised exchange loss			-			509			-		509
Investment loss			42,498			1,092			-		43,590
Unrealised sales returns and
allowance			3,953			2,402			-		6,355
Unused compensated absences			5,266			105			-		5,371
Pensions			22,563	(		1,164)	(		578)		20,821
	$		79,609	$		3,747	($		578)	$	82,778
Deferred tax liabilities
Temporary differences:
Unrealised exchange gain	($		2,901)	$		2,901	$		-	$	-
Provision for land value
increment tax	(		61,992)			-			-	(	61,992)
	($		64,893)	$		2,901	$		-	($	61,992)
	$		14,716	$		6,648	($		578)	$	20,786

~53~

For the year ended December 31, 2022

								Recognised	Recognised
									in other
				Recognised in			comprehensive
		January1			profit or loss				income	December31
Deferred tax assets
Temporary differences:
Bad debts	$		2,952	($		149)	$		-	$	2,803
Unrealised loss on inventories
from market value decline			3,287	(		761)			-		2,526
Unrealised exchange loss			11,950	(		11,950)			-		-
Investment loss			38,815			3,683			-		42,498
Unrealised sales returns and
allowance			1,565			2,388			-		3,953
Unused compensated absences			5,563	(		297)			-		5,266
Pensions			32,276	(		4,130)	(		5,583)		22,563
	$		96,408	($		11,216)	($		5,583)	$	79,609
Deferred tax liabilities
Temporary differences:
Unrealised exchange gain	$		-	($		2,901)	$		-	($	2,901)
Provision for land value
increment tax	(		61,992)			-			-	(	61,992)
	($		61,992)	($		2,901)	$		-	($	64,893)
	$		34,416	($		14,117)	($		5,583)	$	14,716

D. The Company’s income tax returns through 2021 have been assessed and approved by the Tax Authority. The Company does not have any administrative remedy as of February 27, 2024.

~54~

(26) Earnings per share

Basic earnings per share Profit attributable to ordinary shareholders Diluted earnings per share Profit attributable to ordinary shareholders Assumed conversion of all dilutive potential ordinary shares Employees’ compensation Profit attributable to ordinary shareholders plus assumed conversion of all dilutive potential ordinary shares Basic earnings per share Profit attributable to ordinary shareholders Diluted earnings per share Profit attributable to ordinary shareholders Assumed conversion of all dilutive potential ordinary shares Employees’ compensation Profit attributable to ordinary shareholders plus assumed conversion of all dilutive potential ordinary shares	Weighted average number of ordinary shares outstanding Amount aftertax (sharesinthousands) 834,886 $ 178,696 834,886 $ 178,696 - 194 834,886 $ 178,890 For theyear ended December For theyear ended December	Weighted average number of ordinary shares outstanding Amount aftertax (sharesinthousands) 834,886 $ 178,696 834,886 $ 178,696 - 194 834,886 $ 178,890 For theyear ended December For theyear ended December	Weighted average number of ordinary shares outstanding Amount aftertax (sharesinthousands) 834,886 $ 178,696 834,886 $ 178,696 - 194 834,886 $ 178,890 For theyear ended December For theyear ended December	Earnings per share (indollars) 4.67 $ 4.67 $ 31,2023
				31,2022
	Amount aftertax 815,408 $ 815,408 $ - 815,408 $		Weighted average number of ordinary shares outstanding (sharesinthousands) 178,696 178,696 189 178,885	Earnings per share (indollars)
				4.56 $
				4.56 $

~55~

(27) Transactions with non-controlling interest

• A. In September 2022, the Company acquired part of shares of its subsidiary Souriree Biotech Pharmaceutical Co., Ltd. for a total cash consideration of $322. The carrying amount was $305 at the acquisition date. This transaction resulted in a decrease in the equity attributable to the Company by $17.

• B. Refer to Note 6(7), ‘Investments accounted for under equity method’, and Note 6(15), ‘Capital surplus’ for more information regarding the effect on the Company of the spin off and transfer of the synthesis department to the subsidiary, Syn-Tech Chem. & Pharm. Co., Ltd. in July 2022.

• C. There was no such transaction for the year ended December 31, 2023.

(28) Supplemental cash flow information

• A. Investing activities with partial cash payments:

pplemental cash flow information Investing activities with partial cash payments:
		Forthe years ended		December31,
		2023		2022
(1) Acquisition of property, plant and equipment	$	55,130	$	171,793
Add: Beginning balance of notes payable		5,141		3,010
Beginning balance of payable on
equipment (listed as “Other payables”)		16,328		7,027
Less: Ending balance of notes payable	(	1,617)	(	5,141)
Ending balance of payable on
equipment (listed as “Other payables”)	(	5,548)	(	16,328)
Capitalised interest	(	374)	(	638)
Cash paid for acquisition of property, plant
and equipment	$	69,060	$	159,723
(2) Acquisition of investments accounted for
under equity method	$	5,578	$	260,190
Less: Transferred from prepaid shares	(	5,578)		-
Shares acquired from spin-off (Note)		-	(	208,627)
Cash paid for acquisition of investments
accounted for under equity method	$	-	$	51,563
(3)Proceeds from disposal of other non-current assets	$	-	$	-
Add: Beginning balance of other receivables		-		38,364
Less: Ending balance of other receivables		-		-
Cash received from disposal of other non-current assets	$	-	$	38,364

(Note) Refer to Note 6 (7), ‘Investments accounted for under equity method’.

~56~

B. Operating and investing activities with no cash flow effects:

		Forthe years ended	Forthe years ended	December31,
		2023		2022
(1) Prepayments for equipment transferred to
property, plant and equipment	$	35,115	$	94,299
(2) Property, plant and equipment transferred to
expenses	$	2,134	$	-
(3) Property, plant and equipment transferred to
Investment property, net	$	-	$	16,995

(29) Changes in liabilities from financing activities

		Short-term		Lease		Guarantee
		borrowings		liabilities	depositsreceived			Total
At January 1, 2023	$	870,000	$	15,984	$	200	$	886,184
Changes in cash flow from
financing activities	(	410,000)	(	5,390)		8,533	(	406,857)
Changes in other
non-cash items		-		2,619		-		2,619
At December 31, 2023	$	460,000	$	13,213	$	8,733	$	481,946
		Short-term		Lease		Guarantee
		borrowings		liabilities	depositsreceived			Total
At January 1, 2022	$	710,500	$	18,109	$	235	$	728,844
Changes in cash flow from
financing activities		159,500	(	4,842)	(	35)		154,623
Changes in other
non-cash items		-		2,717		-		2,717
At December 31, 2022	$	870,000	$	15,984	$	200	$	886,184

~57~

7. RELATED PARTY TRANSACTIONS

(1) Names of related parties and relationship

Namesmeses of relatedf relatedelatedlatedated partiesrtiestiesieses

Namesmeses of relatedf relatedelatedlatedated partiesrtiestiesieses Relationship with the Company Standard Pharmaceutical Co., Ltd. (Standard P) Subsidiary Chia Scheng International Co., Ltd. (Chia Scheng)(Note) Subsidiary Standard Chem. & Pharm. Philippines, Inc. (PHL) Subsidiary Inforight Technology Co., Ltd. (Inforight) Subsidiary Souriree Biotech & Pharm. Co., Ltd. (Souriree) Subsidiary Multipower Enterprise Corp. (Multipower) Subsidiary Advpharma Inc. (Adv) Subsidiary Syngen Biotech Co., Ltd. (Syngen) Subsidiary Jiangsu Standard Biotech Pharmaceutical Co., Ltd. Subsidiary (Jiangsu Standard) Syn-Tech Chem. & Pharm. Co., Ltd. (Syn-Tech) Subsidiary Zhanshuo Biotech & Pharm. Co., Ltd. (Zhanshuo) Subsidiary Ho Yao Biopharm Co., LTD.(Ho Yao) Subsidiary Shanghai Standard Pharmaceutical Co., Ltd. Subsidiary (Shanghai Standard) We Can Medicines Co., Ltd. (We Can) Associate Taiwan Biosim Co., Ltd. (Biosim) Associate Sun You Biotech Pharm Co., Ltd. Other related party (The manager of (Sun You) the Company is Sun You's director) Fan Dao Nan Foundation (Fan Dao Nan) Other related party (The corporate director of the Company)

(Note) Formerly named as ‘Chia Scheng Investment Co., Ltd.’ and the name was changed since October 12, 2023.

(2) Significant related party transactions

A. Sales of goods

October 12, 2023. nificant related party transactions Sales of goods
Subsidiaries Associates Other related parties	Forthe years endedDecember31,
	2023 8,658 $ 12,005 20,582 41,245 $	2022
		6,464 $ 10,604 23,342
		40,410 $

Prices of goods sold to related parties are determined each time when delivering goods. The payment term of the subsidiaries is to obtain cheques due in 3~4 months. For other related parties, terms of transactions are similar with those to third parties, which is cash payment in 2 months after billing, or to obtain cheques with a maturity of 4~6 months upon billing.

~58~

B. Purchases of goods

Purchases of goods
		For theyears ended		December31,
		2023		2022
Subsidiaries	$	167,485	$	188,898
Associates		-		2,475
Otherrelated parties		5,284		4,471
	$	172,769	$	195,844

Goods are purchased based on the price lists in force and terms that would be available to regular suppliers. Payment terms are 1 ~ 4 months after monthly billings.

C. Property transactions

(a) Acquisition of property, plant and equipment:

Property transactions (a) Acquisition of property, plant and equipment:
(b) Disposal of property, plant and equipment: Subsidiaries Other related parties	2023 2022 2,070 $ - $ Forthe yearendedDecember31,2022
	Proceedsfrom 6 $	Gainondisposal
		6 $

There was no such transaction for the year ended December 31, 2023.

D. Equity transactions

The Company spin off and transferred the synthesis department to Syn-Tech and received the common shares issued from the capital increase with total value of $208,627 in July 2022. There was no such transaction for the year ended December 31, 2023.

E. Other expenses

Other expenses
Advertisement expenses: Subsidiaries Associates	For theyears ended December31,
	2023 1,081 $ 42 1,123 $	2022
		193 $ 58
		251 $

~59~

Research and development expenses: Subsidiaries Professional service fees: Subsidiaries Miscellaneous expenses: Subsidiaries Associates Other related parties	2023 2022 Forthe years endedDecember31, 31,052 $ 12,862 $ 3,964 $ 3,208 $ 810 $ 1,412 $ 146 1,172 - 49 956 $ 2,633 $	2023 2022 Forthe years endedDecember31, 31,052 $ 12,862 $ 3,964 $ 3,208 $ 810 $ 1,412 $ 146 1,172 - 49 956 $ 2,633 $
		3,208 $
		1,412 $ 1,172 49
		2,633 $

F. Rental income

Rental income
Subsidiaries	Leased assets Rent collection Land, Buildings and other equipments Monthly	For the years ended December 31,
		2023 6,192 $	2022
			6,144 $

G. Other income

Other income
Ending balance of goods sold Subsidiaries Associates Other related parties Receivables from related parties: Subsidiaries Associates Other related parties	2023 2022 11,442 $ 9,803 $ 300 68 35 2,292 11,777 $ 12,163 $ For theyears ended December31, December31,2023 December31,2022 2,484 $ 3,513 $ 2,576 1,679 6,858 7,706 11,918 $ 12,898 $
		9,803 $ 68 2,292
		12,163 $
		December31,2022
		3,513 $ 1,679 7,706
		12,898 $

H. Ending balance of goods sold

The receivables from related parties arise mainly from sales transactions. The receivables are unsecured in nature and bear no interest. There are no provisions held against receivables from related parties.

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I. Other receivables

I.	Other receivables
J.	Ending balance of goods purchased Subsidiaries Associates Other related parties Payables to related parties: Subsidiaries Other related parties	December31,2023 470 $ 3,744 - 4,214 $ December 31, 2023 42,821 $ 2,268 45,089 $	December31,2022 1,885 $ - 1,180 3,065 $ December 31, 2022
			40,085 $ 1,626 41,711 $

The payables to related parties arise mainly from purchase transactions. The payables bear no interest.

• －

• K. Lease transactions lessee

• (a) The Company leases land from other related party, Fan Dao Nan. Rental contracts are made for the period from October 1, 2016 to September 30, 2027. Rents are paid quarterly.

• (b) As of December 31, 2023 and 2022, the carrying amount of right-of-use assets were $2,249 and $2,848, respectively.

• (c) As of December 31, 2023 and 2022, the carrying amount of lease liability were $2,315 and $2,915, respectively. The Company recognised interest expenses amounting to $30 and $37 for the years ended December 31, 2023 and 2022, respectively (listed as ‘Finance costs’).

(3) Key management compensation

Key management compensation
Salaries and other short-term employee benefits	For theyears ended December31,
	2023 18,288 $	2022
		15,765 $

8. PLEDGED ASSETS

None.

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED CONTRACT

COMMITMENTS

The balances for contracts that the Company entered into for the purchase of property, plant and equipment, but not yet due were $34,659 and $20,320 as of December 31, 2023 and 2022, respectively.

10. SIGNIFICANT DISASTER LOSS

None.

11. SIGNIFICANT EVENT AFTER THE BALANCE SHEET DATE

None.

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12. OTHERS

(1) Capital management

The Company’s objectives when managing capital are to safeguard the Company’s ability to continue as a going concern in order to provide returns for shareholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

(2) Financial instruments

A. Financial instruments by category

ue new shares or sell assets to reduce debt. nancial instruments 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 instruments Financial assets at amortised cost Cash and cash equivalents Financial assets at amortised cost Notes receivable Accounts receivable Other receivables Guarantee deposits paid Financial liabilities Financial liabilities at amortised cost Short-term borrowings Notes payable Accounts payable Other payables Guarantee deposits received Lease liabilities	December31,2023 11,604 $ 343,837 $ 715,774 $ 8,000 109,055 578,405 11,314 38,291 1,460,839 $ 460,000 $ 134,316 166,760 252,697 8,733 1,022,506 $ 13,213 $	December31,2022
		10,561 $
		248,366 $
		858,252 $ - 100,411 533,695 72,290 25,685
		1,590,333 $
		870,000 $ 141,490 142,739 248,593 200
		1,403,022 $
		15,984 $

B. Risk management policies

(a) The Company’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk, price risk and interest rate risk), credit risk and liquidity risk. To minimise any adverse effects on the financial performance of the Company, derivative financial instruments may be used to hedge certain risk.

(b) Risk management is carried out by a central treasury department (Company treasury) under

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policies approved by the Board of Directors. Company treasury identifies, evaluates and hedges financial risks in close cooperation with the Company’s operating units. The Board provides written principles for overall risk management, as well as written policies covering specific areas and matters, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments.

• C. Significant financial risks and degrees of financial risks

• (a) Market risk

Foreign exchange risk

• i. The Company operates internationally and is exposed to foreign exchange risk arising from the transactions of the Company used in various functional currency, primarily with respect to the USD, JPY and RMB. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities.

• ii. The Company has certain sales and purchases denominated in USD and other foreign currencies. Changes in market exchange rates would affect the fair value. However, the payment and collection periods of asset and liability positions in foreign currencies are close, market risk can be offset. The Company does not expect significant interest rate risk.

• iii. The Company has certain investments in foreign operations, whose net assets are exposed to foreign currency translation risk. However, the net investments of foreign operations are strategic investments, thus the Company does not hedge the investments.

• iv. The Company’s businesses involve some non-functional currency operations (the Company’s functional currency: NTD). The information on assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations is as follows:

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(Foreign currency: functional currency) Financial assets Monetary items USD: NTD JPY: NTD RMB: NTD Investments accounted for under equity method USD: NTD RMB: NTD PHP: NTD Financial liabilities Monetary items USD: NTD (Foreign currency: functional currency) Financial assets Monetary items USD: NTD JPY: NTD RMB: NTD Investments accounted for under equity method USD: NTD RMB: NTD PHP: NTD Financial liabilities Monetary items USD: NTD	Foreign currency amount (In thousands) Exchange rate 23,025 $ 30.71 65,834 0.2172 3,509 4.327 5,838 30.71 297 4.327 7,206 0.5545 113 30.71 December31,2023 December31,2022	Foreign currency amount (In thousands) Exchange rate 23,025 $ 30.71 65,834 0.2172 3,509 4.327 5,838 30.71 297 4.327 7,206 0.5545 113 30.71 December31,2023 December31,2022	Bookvalue 707,084 $ 14,299 15,185 179,272 1,285 3,996 3,469
	Foreign currency amount (Inthousands) 29,020 $ 163,316 4,086 5,918 743 576 302	Exchangerate 30.71 0.2324 4.408 30.71 4.408 0.5443 30.71	Bookvalue
			891,196 $ 37,955 18,010 181,720 3,274 314 9,285

With regard to sensitivity analysis of foreign currency exchange rate risk, if the exchange rates of NTD to all foreign currencies had appreciated/depreciated by 1%, with all other

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factors remaining constant, the Company’s net income for the years ended December 31, 2023 and 2022 would have increased/decreased by $ 5,865 and $ 7,505, respectively.

• v. Total exchange income, including realised and unrealised, arising from significant foreign exchange variation on the monetary items held by the Company for the years ended December 31, 2023 and 2022 amounted to $ 6,786 and $77,967, respectively.

Price risk

• i. The Company’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. To manage its price risk arising from investments in equity securities, the Company diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Company.

• ii. The Company’s investments in equity securities comprise shares issued by the domestic 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 1% with all other variables held constant, post-tax profit for the years ended December 31, 2023 and 2022 would have both increased/decreased by $249, 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 $1,928 and $2,273, respectively, as a result of other comprehensive income classified as equity investment at fair value through other comprehensive income.

Cash flow and fair value interest rate risk

• i.The Company’s main interest rate risk arises from short-term borrowings with variable rates, which expose the Company to cash flow interest rate risk. During the years ended December 31, 2023 and 2022, the Company’s borrowings at variable rate were denominated in the NTD.

• ii. With regard to sensitivity analysis of interest rate risk, if interest rates on borrowings at that date had been 1% higher/lower with all other variables held constant, post-tax profit for the years ended December 31, 2023 and 2022 would have been $86 and $61 lower/higher, respectively, mainly as a result of higher/lower interest expense on floating rate borrowings.

• (b) Credit risk

• i. Credit risk refers to the risk of financial loss to the Company 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.

• ii. The Company manages its credit risk taking into consideration the entire company’s concern. According to the Company’s credit policy, the Company is responsible for managing and analysing the credit risk for each of their new clients before standard payment and delivery terms and conditions are offered. Internal risk control assesses the

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credit quality of the customers, taking into account their financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings in accordance with limits set by the Board of Directors. The utilisation of credit limits is regularly monitored.

• iii. In line with credit risk management procedure, payment reminders are sent as the contract payments are past due, whereby the default occurs when the contract payments are past due over certain period of time, and recourse procedures are initiated. However, the Company will continue executing the recourse procedures to secure their rights.

• iv. The Company classifies customer’s notes and accounts receivable in accordance with credit rating of customer. The Company applies the modified approach using provision matrix to estimate expected credit loss under the provision matrix basis. The Company used the forecastability of conditions to adjust historical and timely information to assess the default possibility of notes and accounts receivable, whereby rate ranging from 0.01% to 100% are applied to the provision matrix. Movements in relation to the Company applying the modified approach to provide loss allowance for notes and accounts receivable are as follows:

Beginning balance Provision for impairment Ending balance Beginning balance Reversal of impairment Ending balance	Notesreceivable Accountsreceivable Total - $ 4,256 $ 4,256 $ - 281 281 - $ 4,537 $ 4,537 $ For theyear ended December31,2023 Notes receivable Accounts receivable Total - $ 5,093 $ 5,093 $ - 837) ( 837) ( - $ 4,256 $ 4,256 $ For theyear ended December31,2022

• (c) Liquidity risk

• i. Cash flow forecasting is performed in the operating entities of the Company and aggregated by Company treasury. Company treasury monitors rolling forecasts of the Company’s liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times so that the Company does not breach borrowing limits or covenants on any of its borrowing facilities.

• ii. Surplus cash held by the Company over and above balance required for working capital management are transferred to the Company treasury. Company treasury invests surplus cash in interest bearing current accounts, time deposits and marketable securities, choosing instruments with appropriate maturities or sufficient liquidity to provide sufficient headroom as determined by the abovementioned forecasts.

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iii. The Company has the following undrawn borrowing facilities:

December 31, 2023 December 31, 2022 Floating rate: Expiring within one year $ 1,754,970 $ 1,264,970

iv. The table below analyses the Company’s non-derivative financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date:

contractual maturity date:
December 31, 2023 Short-term borrowings Notes payable Accounts payable Other payables Lease liabilities Guarantee deposits received December 31, 2022 Short-term borrowings Notes payable Accounts payable Other payables Lease liabilities Guarantee deposits received	Within 1 year 461,079 $ 134,316 166,760 252,697 5,410 3 Within 1year 872,774 $ 141,490 142,739 248,593 4,595 -	Between 1 Between 2 and 2 years and 5 years - $ - $ - - - - - - 4,603 3,398 - 8,730 Between 1 Between 2 and2years and 5 years - $ - $ - - - - - - 4,523 7,191 200 -	Over 5 years
			- $ - - - - - Over 5 years
			- $ - - - - -

     - v. For non-derivative financial liabilities, the Company 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.

• (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 Company’s investment in listed stocks is included.

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

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• Level 3: Unobservable inputs for the asset or liability. The Company’s investment in partial equity instruments without active market is included.

• B. The carrying amounts of the Company’s financial instruments not measured at fair value (including cash and cash equivalents, financial assets at amortised cost, notes receivable, accounts receivable, other receivables, guarantee deposits paid, short-term borrowings, notes payable, accounts payable, other payables, and guarantee deposits received) are approximate to their fair values.

• C. The related information on 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 on the nature of the assets is as follows:

==> picture [443 x 325] intentionally omitted <==

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

December 31, 2023 Level 1 Level 2 Level 3 Total
Recurring fair value measurements
Financial assets at fair value
through profit or loss
- -
Equity securities $ $ $ 11,604 $ 11,604
Financial assets at fair value
through other comprehensive
income
-
Equity securities 243,007 100,830 343,837
-
$ 243,007 $ $ 112,434 $ 355,441
December 31, 2022 Level 1 Level 2 Level 3 Total
Recurring fair value measurements
Financial assets at fair value
through profit or loss
- -
Equity securities $ $ $ 10,561 $ 10,561
Financial assets at fair value
through other comprehensive
income
-
Equity securities 154,874 93,492 248,366
-
$ 154,874 $ $ 104,053 $ 258,927
----- End of picture text -----

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

• i. The instruments that the Company used market quoted prices as their fair values (that is, Level 1) are listed below by characteristics:

Listed stocks Market quoted price Closing price

• ii. Except for financial instruments with active markets, the fair value of other financial instruments is measured by using valuation techniques or by reference to counterparty quotes. The fair value of financial instruments measured by using valuation techniques

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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 parent company only balance sheet date.

• 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 Company’s financial and non-financial instruments. Therefore, the estimated value derived using valuation model is adjusted accordingly with additional inputs, for example, model risk or liquidity risk and etc. In accordance with the Company’s management policies and relevant control procedures relating to the valuation models used for fair value measurement, management believes adjustment to valuation is necessary in order to reasonably represent the fair value of financial and non-financial instruments in the parent company only balance sheet. The inputs and pricing information used during valuation are carefully assessed and adjusted based on current market conditions.

• D. There was no transfer between Level 1 and Level 2 in 2023 and 2022.

• E. The following table presents the changes in Level 3 instruments in 2023 and 2022:

At January 1 Recognised in profit or loss (Note 1) Recognised in other comprehensive income (Note 2) At December 31	Forthe years endedDecember31,	Forthe years endedDecember31,
	2023 104,053 $ 1,043 7,338 112,434 $	2022
		100,434 $ 712 2,907
		104,053 $

(Note 1) Listed as “Other gains and losses”.

• (Note 2) Listed as “Unrealised gain or loss on financial assets at fair value through other comprehensive income”.

• F.FFor the years ended December 31, 2023 and 2022, there was no transfer from or to Level 3.

• G. Financial segment is in charge of valuation procedures for fair value measurements being categorised 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, and frequently calibrating valuation model, performing back-testing, updating inputs used to the valuation model and making any other necessary adjustments to the fair value.

• 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.

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Non-derivative equity instrument: Unlisted stocks Non-derivative equity instrument: Unlisted stocks	Significant Fair value at Valuation unobservable December31,2023 technique input 112,434 $ Market comparable companies Discount for lack of marketability Significant Fair value at Valuation unobservable December31,2022 technique input 104,053 $ Market comparable companies Discount for lack of marketability	Range Relationship (weighted of inputs to average) fairvalue 30% The higher the discount for lack of marketability, the lower the fair value Range Relationship (weighted of inputs to average) fair value 30% The higher the discount for lack of marketability, the lower the fair value	Relationship of inputs to fairvalue

• I. The Company has carefully assessed the valuation models and assumptions used to measure fair value; therefore, the fair value measurement is reasonable. However, use of different valuation models or assumptions may result in different measurement. The following is the effect on profit or loss or on other comprehensive income from financial assets categorised within Level 3 if the inputs used to valuation models have changed:

Financial assets Equity instrument	Input Discount for lack of	Change ± 3%		December31,2023	December31,2023	December31,2023
			Recognised in	Unfavourable change 497) ($ profit or loss	Recognised in other comprehensive income
			Favourable change 497 $		Favourable change 4,321 $	Unfavourable change
						4,321) ($

Financial assets Equity instrument	Input Discount for lack of	Change ± 3%		December31,2022	December31,2022	December31,2022
			Recognised in	Unfavourable change 453) ($ profit or loss	Recognised in other comprehensive income
			Favourable change 453 $		Favourable change 4,007 $	Unfavourable change
						4,007) ($

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13. SUPPLEMENTARY DISCLOSURES

(Only 2023 information is disclosed in accordance with the current regulatory requirements.)

• (1) Significant transactions information

• A. Loans to others: Refer to table 1.

• B. Provision of endorsements and guarantees to others: None.

• C. Holding of marketable securities at the end of the year (not including subsidiaries, associates and joint ventures): Refer to table 2.

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

• H. Receivables from related parties reaching $100 million or 20% of paid-in capital or more: None.

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

• J. Significant inter-company transactions during the reporting periods: Refer to table 3.

• (2) Information on investees

Names, locations and other information of investee companies (not including investees in Mainland China): Refer to table 4.

• (3) Information on investments in Mainland China

• A. Basic information: Refer to table 5.

• B. Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland Area: None.

(4) Main stockholders information

Main stockholders information: Refer to table 6.

14. SEGMENT INFORMATION

Not applicable.

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Table 1

Expressed in thousands of NTD

STANDARD CHEM & PHARM. CO., LTD.

Loans to others

For the year ended December 31, 2023

Number	Creditor	Borrower	General ledger account	Is a related party	Maximum outstanding balance	Ending balance (Note 2)	Actual amount drawn down	Interest rate	Nature of loan (Note 1)	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
													Item	Value
1 2	Standard Pharmaceutical Co., Ltd. Jiangsu Standard Biotech Pharmaceutical Co., Ltd.	Jiangsu Standard Biotech Pharmaceutical Co., Ltd. Jiangsu Standard-Dia Biopharma Co., Ltd.	Other receivables Yes Other receivables Yes		92,130 $ 4,543	92,130 $ 4,543	92,130 $ 4,543	1.20% 1.20%	2 2	- -	Operating capital - Operating capital -		－ －	- -	376,757 $ 12,035	376,757 $ 14,442	(Notes 3) (Notes 3)

Note 1: The code represents the nature of financing activities as follows:

• (1) Trading partner.

• (2) Short-term financing.

Note 2: The ending balance is the credit limit approved by the Board of Directors.

Note 3: Calculation of limit on loans granted to a single party and ceiling on total loans granted:

• (1) Limit on loans granted to a single party:

(a) For the companies having business relationship with the Company, limit on loans granted to a single party is the higher value of purchasing and selling during current or latest year on the year of financing.

(b) For short-term financing, limit on loans granted to a single party is 5% of the Company’s net assets based on the latest audited consolidated financial statements.

(c) Limit on loans granted by Standard Pharmaceutical Co., Ltd. to a single party is 200% of the creditor’s net assets based on the latest audited or reviewed consolidated financial statements.

(d) Limit on loans granted by Jiangsu Standard Biotech Pharmaceutical to a single party is 25% of the creditor’s net assets based on the latest audited or reviewed consolidated financial statements. (2) Ceiling on total loans granted to a single party:

(a) Ceiling on total loans granted by Standard Pharmaceutical Co., Ltd. to single party is 200% of the creditor’s net assets.

(b) Ceiling on total loans granted by Jiangsu Standard Biotech Pharmaceutical to single party is 30% of the creditor’s net assets.

(3) For short-term financing, ceiling on total loans granted to all direct or indirect wholly-owned domestic and foreign subsidiaries of the Company is not limited to 40% of the creditors’ net assets. Note 4: Foreign currencies were translated into New Taiwan Dollars with exchange rate as of December 31, 2023 as follows: USD: NTD 1:30.71 and RMB: NTD 1:4.327.

Table 1 page 1

Table 2

Expressed in thousands of NTD

STANDARD CHEM & PHARM. CO., LTD.

Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures) December 31, 2023

Securities held by	Marketable securities	Relationship with the securities issuer	General ledger account	Number of shares	As	of December 31, 2023	of December 31, 2023	Note
					Bookvalue	Ownership (%)	Fairvalue
Standard Chem & Pharm. Co., Ltd. Chia Scheng International Co., Ltd. MULTIPOWER ENTERPRISE CORP. Advpharma Inc.	Bonds with repurchase agreement: China Bills Finance Corporation Stocks: Original BioMedicals Co., Ltd. NCKU Venture Capital Co., Ltd. NTU Innovation & Incubation Co., Ltd. TaiwanJ Pharmaceuticals Co., Ltd. HER-SING CO., LTD. SUN YOU BIOTECH PHARM CO., LTD. Green Management International Co., Ltd. Kenda Pharmacentiocal Co., Ltd. Rossmax International Ltd. EASYWELL BIOMEDICALS, INC. Beneficiary certificates: Taishin Ta-Chong Money Market Fund Taishin 1699 Money Market Fund Stocks: SUN YOU BIOTECH PHARM CO., LTD. Stason Pharmaceuticals, Inc. Bonds with repurchase agreement: International Bills Finance Corporation Mega Bills Finance Co., Ltd. Beneficiary certificates: Mega Diamond Money Market Fund FSITC Taiwan Money Market Fund Taishin 1699 Money Market Fund UPAMC James Bond Money Market Fund Shin Kong US Harvest Balanced USD A Cathay Senior Secured High Yield Bond Capital Money Market Fund Shin Kong Emergin Wealthy Nations Bond Fund A	－ － － － － The Company is HER-SING Co., Ltd.'s corporate director The manager of the Company is SUN YOU BIOTECH PHARM CO., LTD.'s director － － － － － － The manager of the Company is SUN YOU BIOTECH PHARM CO., LTD.'s director － － － － － － － － － － －	1 2 3 3 3 4 4 4 4 4 4 2 2 4 4 1 1 2 2 2 2 2 2 2 2	－ 200,000 650,000 480,000 258,133 3,055,000 3,378,006 109,672 5,000,000 1,304,000 5,094,600 368,142 50,000 240,846 4,000,000 － － 3,166,588 1,652,490 1,473,047 1,662,198 245,916 368,302 1,658,329 195,290	18,424 $ - 3,913 3,883 3,808 48,819 45,738 1,873 4,400 32,600 210,407 5,378 697 3,261 - 80,000 20,000 40,846 26,007 20,538 28,501 2,693 4,044 27,507 1,778	- 0.43% 4.17% 3.76% 0.34% 17.71% 18.13% 5.14% 19.42% 1.54% 4.45% - - 1.29% 13.02% - - - - - - - - - -	18,424 $ - 3,913 3,883 3,808 48,819 45,738 1,873 4,400 32,600 210,407 5,378 697 3,261 - 80,000 20,000 40,846 26,007 20,538 28,501 2,693 4,044 27,507 1,778	- - - - - - - - - - - - - - - - - - - - - - - - -

Table 2 page 1

Securities held by	Marketable securities	Relationship with the securities issuer	General ledger account	Number of shares	As	of December 31, 2023	of December 31, 2023	Note
					Bookvalue	Ownership (%)	Fairvalue
Advpharma Inc. Advpharma Inc.	Fubon NASDAQ-100 Index ETF Yuanta Taiwan High Dividend Low Volatility ETF CTBC Taiwan ESG Leading Semiconductor ETF CTBC TIP Customized Taiwan Green Energy and Electric Vehicles ETF SinoPac Taiwan Superior Dividend Highlight Stocks ETF KGI Taiwan Premium Selection High Dividend 30 ETF Capital Tip Customized Taiwan Select High Dividend ETF Cathay Taiwan Leaders 50 ETF Fuh Hwa Taiwan Technology Dividend Highlight ETF Yuanta US 20+ Year BBB Corporate Bond ETF CAPITAL ICE ESG 20+ Year BBB Us Corporate ETF Stocks: Taiwan Cement Corporation Universal Cement Corporation CHAROEN POKPHAND ENTERPRISE(TAIWAN) CO., LTD. Cathay Consolidated,INC. Tainan Enterprises Co., Ltd. CHUNG-HSIN ELECTRIC & MACHINERY MFG. CORP. CHINA WIRE & CABLE CO., LTD. Taiwan Fertilizer Co., Ltd. NANG KUANG PHARMACECUTICAL CO., LTD EVERGREEN STEEL CORPORATION United Microelectronics Corporation COMPEQ MANUFACTURING CO., LTD. TAIWAN SEMICONDUCTOR MANUFACTURING CO.,LTD. Synnex Technology International Corporation QUANTA COMPUTER INC. INSTEK ELECTRONIC (SHANGHAI) CO., LTD. KING YUAN ELECTRONICS CO., LTD. UNIFORM INDUSTRIAL CORP. .	－ － － － － － － － － － － － － － － － － － － － － － － － － － － － －	2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2	2,000 2,000 3,000 1,000 2,000 3,000 2,000 3,000 4,000 1,000 1,000 2,000 1,000 4,000 1,000 5,000 20,000 2,000 2,000 4,000 3,000 7,000 1,000 1,000 1,000 1,000 10,000 18,000 6,000	134 $ 101 49 16 30 67 45 51 77 36 16 70 30 384 120 146 2,330 77 135 213 312 368 71 593 70 225 380 1,528 243	- - - - - - - - - - - - - - - - - - - - - - - - - - 0.01% - 0.01%	134 $ 101 49 16 30 67 45 51 77 36 16 70 30 384 120 146 2,330 77 135 213 312 368 71 593 70 225 380 1,528 243	- - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Table 2 page 2

Securities held by	Marketable securities	Relationship with the securities issuer	General ledger account	Number of shares	As	of December 31, 2023	of December 31, 2023	Note
					Bookvalue	Ownership (%)	Fairvalue
Advpharma Inc.	HANPIN ELECTRON CO., LTD. Goldsun Building Materials Co., Ltd. HUNG SHENG CONSTRUCTION CO., LTD. Taiwan Navigation Co., Ltd. EVA AIRWAYS CORPORATION Bafang Yunji International Co., Ltd. CHANG HWA COMMERCIAL BANK, LTD. Shinkong Insurance Co., Ltd. Yuanta Financial Holding Co., Ltd. SinoPac Financial Holdings Co., LTD. First Financial Holding Co.,Ltd. Zero One Technology Co., Ltd. Unimicron Technology Corp. TXC CORPORATION POWERCOM CO., LTD. ASX-ASE Technology Holding Co., Ltd. TOPKEY CORPORATION Primax Electronics Ltd. STAR COMGISTIC CAPITAL CO., LTD. GENERAL PLASTIC INDUSTRIAL CO., LTD. Radiant Opto-Electronics Corporation ATEN INTERNATIONAL CO., LTD. Taiwan Surface Mounting Technology Corp. Symtek Automation Asia Co., Ltd. WINSTAR DISPLAY CO., LTD CHANG WAH ELECTROMATERIALS INC. Pou Chen Corporation TAIWAN SAKURA CORPORATION Yulon Finance Corporation Channel Well Technology Co., Ltd Ardentec Corporation Winstek Semiconductor Co., Ltd. AIC INC. TTY Biopharm Company Limited LEO SYSTEMS, INC. SIMPLO TECHNOLOGY CO., LTD. Chipbond Technology Corporation Quanta Storage Inc. CHANG WAH TECHNOLOGY CO., LTD. Ever Supreme Bio Technology Co., Ltd. AMPIRE CO., LTD.	－ － － － － － － － － － － － － － － － － － － － － － － － － － － － － － － － － － － － － － － － －	2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2	1,000 1,000 3,000 3,000 3,000 1,000 5,000 3,000 30,000 20,000 47,000 8,000 1,000 4,000 4,000 1,000 1,000 2,000 3,000 1,000 5,000 3,000 1,000 4,000 3,000 1,000 1,000 3,000 1,000 2,000 1,000 4,000 1,000 3,000 1,000 6,000 13,000 1,000 1,000 1,000 1,000	40 $ 28 61 99 94 171 90 204 828 394 1,288 523 176 394 148 135 179 135 97 35 665 241 96 418 88 35 31 209 186 168 74 365 441 241 34 2,520 940 82 33 196 39	- - - - - - - - - - - 0.01% - - 0.01% - - - - - - - - 0.01% - - - - - - - - - - - - - - - - -	40 $ 28 61 99 94 171 90 204 828 394 1,288 523 176 394 148 135 179 135 97 35 665 241 96 418 88 35 31 209 186 168 74 365 441 241 34 2,520 940 82 33 196 39	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Table 2 page 3

Securities held by	Marketable securities	Relationship with the securities issuer	General ledger account	Number of shares	As	of December 31, 2023	of December 31, 2023	Note
					Bookvalue	Ownership (%)	Fairvalue
Advpharma Inc. Syngen Biotech Co,. Ltd. SYN-TECH CHEM & PHARM CO., LTD.	BON FAME CO., LTD. Xxentria Technology Materials Co., Ltd. Deyong Biological Technology Co., Ltd. TaiwanJ Pharmaceuticals Co., Ltd. Stocks: NCKU Venture Capital Co., Ltd. Bonds with repurchase agreement: Ta Ching Bills Finance Corporation.	－ － － － － －	2 2 3 3 3 1	1,000 1,000 76,698 25,203 650,000 －	91 $ 72 716 372 3,913 294,475	- - 3.70% 0.03% 4.17% -	91 $ 72 716 372 3,913 294,475	- - - - -

Note 1: Marketable securities in the table refer to stocks, bonds, beneficiary certificates and other related derivative securities. Note 2: The general ledger account is classified into the following four categories:

1. Cash and cash equivalents

2. Financial assets at fair value through profit or loss - current

3. Financial assets at fair value through profit or loss - non-current

4. Financial assets at fair value through other comprehensive income - non-current

Note 3: Foreign currencies were translated into New Taiwan Dollars with exchange rate as of December 31, 2023 as follows: USD: NTD 1:30.71.

Table 2 page 4

STANDARD CHEM & PHARM. CO., LTD.

• Significant inter company transactions during the reporting period For the year ended December 31, 2023

Table 3

Expressed in thousands of NTD

Transaction

Number (Note 2)	Companyname	Counterparty	Relationship (Note 3)	General ledger account	Amount	Transaction terms	Percentage of consolidated total operatingrevenues or total assets(Note 4)
0 1 2 3	Standard Chem & Pharm. Co., Ltd. Standard Pharmaceutical Co., Ltd. Syngen Biotech Co,. Ltd. SYN-TECH CHEM. & PHARM. CO., LTD.	Syngen Biotech Co,. Ltd. Souriree Biotech & Pharm. Co., Ltd. SYN-TECH CHEM & PHARM CO., LTD. Jiangsu Standard Biotech Pharmaceutical Co., Ltd. Ho Yao Biopharm Co., Ltd. Jiangsu Standard Biotech Pharmaceutical Co., Ltd. Standard Chem & Pharm. Co., Ltd. Standard Chem & Pharm. Co., Ltd. Souriree Biotech & Pharm. Co., Ltd.	1 1 1 1 1 1 1 3 2 2 3	Purchases Accounts payable Purchases Accounts payable Purchases Other expenses Other expenses Other receivables Other expenses Lease Liabilities Sales	$ 68,237 ( 23,030) 78,809 ( 13,266) 20,389 13,696 14,856 92,244 22,845 15,021 10,285	1 ~ 4 month(s) after monthly billings. － 1 ~ 4 month(s) after monthly billings. － 1 ~ 4 month(s) after monthly billings. 1 ~ 4 month(s) after monthly billings. 1 ~ 4 month(s) after monthly billings. － 30 days after monthly billings. － Receiving promissory note mature in 4 months at next month after sales, or receiving promissory note mature in 1~3 month(s) after sales	1% － 1% － － － － 1% － － －

Note 1: As the amounts and counterparties of significant inter-company transactions are the same from the opposite transaction sides, no disclosure is required. Only transactions amounting to more than $10,000 are disclosed. Note 2: 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 3: Relationship between transaction company and counterparty is classified into the following three categories:

(1) Parent company to subsidiary.

(2) Subsidiary to parent company.

(3) Subsidiary to subsidiary.

Note 4: Regarding percentage of transaction amount to consolidated total operating revenues or total assets, it is computed based on ending balance of transaction to consolidated total assets for balance sheet accounts and based on accumulated transaction amount for the year to consolidated total operating revenues for statement of comprehensive income accounts.

Note 5: Foreign currencies were translated into New Taiwan Dollars with exchange rate as of December 31, 2023 as follows: USD: NTD 1:30.71 and RMB: NTD 1:4.327.

Table 3 page 1

Information on investees

For the year ended December 31, 2023

Table 4

Expressed in thousands of NTD

STANDARD CHEM & PHARM. CO., LTD.

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held	as at December31,2023	as at December31,2023	Net profit (loss) of the investee for the year ended December31,2023	Investment income (loss) recognised for the year ended December31,2023	Note
				Balance as at December 31, 2023	Balance as at December 31, 2022	Number of shares	Ownership (%)	Bookvalue
Standard Chem & Pharm. Co., Ltd.	Standard Pharmaceutical Co., Ltd. Chia Scheng International Co., Ltd. STANDARD CHEM. & PHARM. PHILIPPINES, INC. Inforight Technology Co., Ltd. Souriree Biotech & Pharm. Co., Ltd. Multipower Enterprise Corp. Advpharma Inc. Syngen Biotech Co., Ltd. SYN-TECH CHEM. & PHARM. CO., LTD. Ho Yao Biopharm Co., LTD.	Samoa Taiwan Philippines Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan	Research and development, trading, investment and other business of medical products General investment Import and export of various medical products, medicine, supplements Wholesale of multi-function printers and information software Manufacturing of western medicine and retail and wholesale of various medicines Import and export of western medicine, nourishment and function food, processing, manufacturing and sale of food Research and development, manufacturing and sale of various medicine Research and development, manufacturing and sale of APIs, biopesticide, fertiliser and biochemical nutrition, sale of preventive medicine Manufacturing and sale of APIs, reagent, surfactant, Chinese, western, and veterinary medicinal products Research and development of new medicine	396,953 $ 161,356 12,340 5,000 41,871 293,063 525,933 330,203 720,941 46,800	396,953 $ 161,356 6,762 5,000 41,871 293,063 525,933 330,203 720,941 46,800	13,000,000 14,553,000 392,014 500,000 5,673,908 19,840,600 53,226,806 12,651,146 12,675,959 3,680,000	100.00 100.00 100.00 100.00 93.58 90.72 88.71 46.68 28.43 84.99	179,272 $ 11,363 3,996 7,666 50,404 324,570 271,699 975,993 784,589 43,286	1,618) ($ 266 1,883) ( 3,454 9,402 13,971) ( 5,460 274,827 251,150 5,730	1,618) ($ 266 1,883) ( 3,454 8,965 12,827) ( 4,908 128,862 63,757 4,869	Subsidiary Subsidiary (Note 1) Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary (Note 2) Subsidiary (Note 3) Subsidiary

Table 4 page 1

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held	as at December31,2023	as at December31,2023	Net profit (loss) of the investee for the year ended December31,2023	Investment income (loss) recognised for the year ended December31,2023	Note
				Balance as at December 31, 2023	Balance as at December 31, 2022	Number of shares	Ownership (%)	Bookvalue
Standard Chem & Pharm. Co., Ltd. Syngen Biotech Co., Ltd Advpharma Inc. SYN-TECH CHEM. & PHARM. CO., LTD.	WE CAN MEDICINES CO., LTD. Taiwan Biosim, Co., Ltd. SYNGEN BIOTECH INTERNATIONAL SDN. BHD. Jhan Shuo Biopharma Co., Ltd. GENEFERM BIOTECHNOLOGY CO., LTD. CNH TECHNOLOGIES INC. Advpharma Inc. CNH TECHNOLOGIES INC.	Taiwan Taiwan Malaysia Taiwan Taiwan USA Taiwan USA	Wholesale of various medicine Research and development of various medicine Research and development, manufacturing and sale of APIs and biochemical nutrition, sale of preventive medicine Manufacturing, wholesale and sale of western medicine Research and development, design, quantification, manufacturing and sale of microbial and edible mushroom medicine fermentation, herbal and vegetal functional products, fruit and vegetable fermentation concentrates and protein products, management of the aforementioned trade business, technological consultancy, etc. Research and development of various medicine Research and development, manufacturing and sale of various medicine Research and development of various medicine	277,067 $ 49,900 14,064 100 273,840 13,734 9,626 21,092	277,067 $ 49,900 7,322 100 273,840 13,734 9,626 21,092	13,155,909 4,990,000 2,000,000 10,000 12,000,000 400,000 1,495,414 535,050	32.89 49.90 100.00 100.00 28.94 35.60 2.49 47.62	243,423 $ 32,776 6,851 101 327,830 1,202 7,823 1,834	14,803 $ 1,591 791) ( 1 124,621 1,478 5,460 1,478	4,679 $ 794 - - - - - -	Associate Associate Subsidiary (Note 4) Subsidiary (Note 4) Associate (Note 4) (Note 4) (Note 4) (Note 4)

Note 1: Formerly named as ‘Chia Scheng Investment Co., Ltd.’ and the name was changed since October 12, 2023.

Note 2: In September 2016, the subsidiary, Syngen Biotech Co., Ltd. ("Syngen"), filed for an initial public offering with Taipei Exchange. As part of the public trading process, the Company allowed its underwriter to exercise the overallotment option, which decreased the Company's ownership percentage in Syngen to below 50%. However, the Company did not lose control over Syngen.

Note 3: The company participated in the cash captial increase of SYN-TECH CHEM. & PHARM. CO., LTD., which results in becoming SYN-TECH's single largest corporate shareholder and having substantial control over it. Note 4: Not required to disclose income (loss) recognised.

Note 5: Foreign currencies were translated into New Taiwan Dollars with exchange rate as of December 31, 2023 as follows: USD: NTD 1:30.71.

Table 4 page 2

STANDARD CHEM & PHARM. CO., LTD. Information on investments in Mainland China

For the year ended December 31, 2023

Table 5

Expressed in thousands of NTD

Accumulated

							Accumulated
Investee in Mainland China	Main business activities	Paid-in capital	Investment method	Accumulated amount of remittance from Taiwan to Mainland China as of January1,2023	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the year ended December 31,2023		amount of remittance from Taiwan to Mainland China as of December 31,2023	Net income (loss) of investee for the year ended December 31, 2023	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised for the year ended December 31, 2023	Book value of investments in Mainland China as of December 31,2023	Accumulated amount of investment income remitted back to Taiwan as of December 31, 2023	Note
					Remitted to Mainland China	Remitted back to Taiwan
Jiangsu Standard Biotech Pharmaceutical Co., Ltd. Jiangsu Standard-Dia Biopharma Co., Ltd. Shanghai Standard Pharmaceuticals Co., Ltd.	Research and development, technical consulting and technical services of medicine Research and development, manufacturing and sale of various medicine Sale of various medicine and dietary supplement	276,390 $ 183,444 4,512	(Note 1) (Note 2) (Note 3)	276,084 $ - 4,512	- $ - -	- $ - -	276,084 $ - 4,512	3,278) ($ 9,265) ( 1,958) (	100.00 55.00 100.00	3,278) ($ 4,962) ( 1,958) (	48,240 $ 11,326) ( 1,285	- $ - -	(Note 4) (Note 4) (Note 4)

Companyname	Accumulated amount of remittance from Taiwan to Mainland China as of December 31,2023	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 (Note 5)
Standard Chem & Pharm. Co., Ltd.	280,596 $	280,901 $	4,882,402 $

Note 1: Indirect investment in Mainland China through an existing company (Standard Pharmaceutical Co., Ltd.) located in the third area. Note 2: Indirect investment in Mainland China through an existing company (Jiangsu Standard Biotech Pharmaceutical Co., Ltd.) located in Mainland China. Note 3: Direct investment in Mainland China from Taiwan. Note 4: Recognition is based on investees' financial statements audited and attested by independent accountants. Note 5: Ceiling is the higher of net assets or 60% of consolidated equity. Note 6: Foreign currencies were translated into New Taiwan Dollars with exchange rate as of December 31, 2023 as follows: USD: NTD 1:30.71 and RMB: NTD 1:4.327.

Table 5 page 1

Table 6

STANDARD CHEM & PHARM. CO., LTD. Major Shareholders Information

December 31, 2023

Major Shareholder's Name	Shares	Shares
	Number of shares	Percentage
Chin-Tsai, Fan Tzu-Pin, Fan Mei-Rong, Fan Hung Tzu-Tin, Fan Sen-Hao, Cheng Tsuey-Wen, Yeh	20,636,813 19,518,084 14,584,781 11,766,604 9,185,888 9,124,669	12% 11% 8% 7% 5% 5%

• Note 1: The information of major shareholders in this table is calculated by TDCC on the last business day at the end of each quarter to calculate that the shareholder-holding company has completed

• the book-entry delivery (including treasury stocks) of common stocks and special stocks totaling more than 5%. As for the share capital recorded in the company’s financial report and the company’s actual number of shares registered and delivered may be different due to the calculation bases.

Note 2: If shareholder has his/hers shares been entrusted, it shall disclosed in the trustee's individual accounts. As for shareholder's declareation of shares held by insiders with more than 10%, for shareholding that includes shares on hand and those have been entrusted, and the right to their entrust property, etc., please refer to MOPS's website.

Table 6 page 1

STANDARD CHEM. & PHARM. CO., LTD. STATEMENT OF CASH AND CASH EQUIVALENTS DECEMBER 31, 2023

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

Item Description Cash: Revolving funds and petty cash Demand deposits-New Taiwan Dollar Demand deposits-Foreign currency Including JPY 65,404 thousand @0.2172 IncludingUSD 1,102 thousand @30.71 IncludingCNY 2,446 thousand @4.327 IncludingEUR 0.2 thousand @33.98 Cash equivalents: Time deposits-Foreign currency Including CNY 1,000 thousand @4.327 due on 2024/01/12, interest rate at 1.35% Including USD 14,600 thousand @30.71 due on 2024/01/08~2024/03/22, interest rate at 5.13%～5.65% Repurchase bonds-Foreign currency Including USD 600 thousand @30.71 due on 2024/01/16, interest rate at 5.60%		Amount
		8,542 $ 177,466 14,206 33,852 10,583 8 4,327 448,366 18,424 715,774 $

~72~

STANDARD CHEM. & PHARM. CO., LTD. STATEMENT OF NOTES RECEIVABLE DECEMBER 31, 2023

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

Client Name	Description		Amount	Note
Non-related parties: Others (individually less than 5%) Related parties: SUN YOU BIOTECH PHARM CO., LTD. Souriree Biotech & Pharm. Co., Ltd. Syngen Biotech Co., Ltd.	Notes receivable Notes receivable Notes receivable Notes receivable		104,686 $ 2,773 909 687 4,369 109,055 $	－ － － －

~73~

STANDARD CHEM. & PHARM. CO., LTD. STATEMENT OF ACCOUNTS RECEIVABLE (NET) DECEMBER 31, 2023

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

Client Name Non-related parties: Company A Others (individually less than 5%) Less: Allowance for doubtful accounts Related parties: SUN YOU BIOTECH PHARM CO., LTD. WE CAN MEDICINES CO., LTD. STANDARD CHEM. & PHARM. PHLLIPPINES, INC. Syngen Biotech Co., Ltd.	Description Amount Accounts receivable 161,492 $ Accounts receivable 413,901 575,393 4,537) ( 570,856 Accounts receivable 4,085 Accounts receivable 2,576 Accounts receivable 878 Accounts receivable 10 7,549 578,405 $	Note
		－ － － － － － －

~74~

STANDARD CHEM. & PHARM. CO., LTD. STATEMENT OF INVENTORIES DECEMBER 31, 2023

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

==> picture [475 x 176] intentionally omitted <==

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

Amount
Item Description Cost Net Realisable Value Note
Merchandise － $ 49,060 $ 83,204 (Note)
Raw materials － 225,052 220,234 (Note)
－
Supplies 42,447 41,694 (Note)
－
Work in progress 75,717 75,717 (Note)
－
Finished goods 328,267 675,702 (Note)
720,543 $ 1,096,551
Less: Allowance for
( 16,389)
inventory valuation losses
$ 704,154
----- End of picture text -----

(Note) Refer to Note 4(10) for the method to determine the net realisable value.

~75~

STANDARD CHEM. & PHARM. CO., LTD.

STATEMENT OF CHANGES IN FINANCIAL ASSETS MEASURED AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME - NONCURRENT

FOR THE YEAR ENDED DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

Name	Shares (inthousands) FairValue BeginningBalance	Shares (inthousands) FairValue BeginningBalance	Shares (inthousands) FairValue BeginningBalance	Addition	Addition	Addition	Decrease	Decrease	Valuation Adjustments	Shares (inthousands) FairValue EndingBalance	Shares (inthousands) FairValue EndingBalance	Shares (inthousands) FairValue EndingBalance	Collateral	Note
				Shares (inthousands) 814 - - - - -		Amount	Shares (inthousands)	Amount	Amount
Listed stocks: Rossmax International Ltd. EASYWELL BIOMEDICALS, INC. Unlisted stocks: HER-SING CO., LTD. SUN YOU BIOTECH PHARM CO., LTD. Green Management International Co., Ltd. Kenda Pharmacentical Co., Ltd.	2,990 5,095 3,055 3,378 110 5,000		73,106 $ 81,768 42,770 44,421 1,751 4,550 248,366 $			18,983 $ - - - - - 18,983 $	2,500) ( - - - - -	53,499) ($ - - - - - 53,499) ($	5,990) ($ 128,639 6,049 1,317 122 150) ( 129,987 $	1,304 5,095 3,055 3,378 110 5,000		32,600 $ 210,407 48,819 45,738 1,873 4,400 343,837 $	None None None None None None	－ － － － － －

~76~

STANDARD CHEM. & PHARM. CO., LTD. STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR UNDER EQUITY METHOD FOR THE YEAR ENDED DECEMBER 31, 2023

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

Name	BeginningBalance	BeginningBalance	BeginningBalance	Additions	Additions	Additions	Decrease	Decrease		EndingBalance	EndingBalance		Market Value or Net Assets Value	Market Value or Net Assets Value	Market Value or Net Assets Value	Collateral Note
	Shares (in thousands)		Amount	Shares (in thousands)		Amount	Shares (in thousands)	Amount	Shares (in thousands)	Percentage of Ownership		Amount	Unit Price	Total Amount
Standard Pharmaceutical Co., Ltd. Chia Scheng International Co., Ltd.(Note) Standard CHEM. & PHARM. PHILIPPINES, INC. Inforight Technology Co., Ltd. Souriree Biotech & Pharm. Co., Ltd. Multipower Enterprise Corp. Advpharma Inc. Syngen Biotech Co., Ltd. SYN-TECH CHEM. & PHARM. CO., LTD. Ho Yao Biopharm Co., Ltd. Shanghai Shengda Zhengcheng Pharma ceutical Co., Ltd. WE CAN MEDICINES CO., LTD. Taiwan Biosim Co., Ltd.	13,000 14,553 192 500 5,674 19,841 53,227 12,651 12,676 3,680 - 13,156 4,990		181,720 $ 11,003 314 4,212 41,483 337,397 266,798 910,035 758,751 38,417 3,274 235,502 31,982 2,820,888 $	- - 200 - - - - - - - - - -		12,061 $ 413 5,656 3,454 10,899 - 5,169 130,116 67,521 6,466 361 7,921 1,933 251,970 $	- - - - - - - - - - - - -	14,509) ($ 53) ( 1,974) ( - 1,978) ( 12,827) ( 268) ( 64,158) ( 41,683) ( 1,597) ( 2,350) ( - 1,139) ( 142,536) ($	13,000 14,553 392 500 5,674 19,841 53,227 12,651 12,676 3,680 - 13,156 4,990	100% 100% 100% 100% 93.58% 90.72% 88.71% 46.68% 28.43% 84.99% 100.00% 32.89% 49.90%		179,272 $ 11,363 3,996 7,666 50,404 324,570 271,699 975,993 784,589 43,286 1,285 243,423 32,776 2,930,322 $	13.79 $ 0.78 10.19 15.33 14.17 12.93 5.23 152.00 85.20 8.59 - 108.00 6.57		179,272 $ 11,363 3,996 7,666 80,400 256,499 278,446 1,922,800 1,079,995 31,608 1,285 1,420,848 32,776 5,306,954 $	None － None － None － None － None － None － None － None － None － None － None － None － None －

(Note) Formerly named as ‘Chia Scheng Investment Co., Ltd.’ and the name was changed since October 12, 2023.

~77~

STANDARD CHEM. & PHARM. CO., LTD. STATEMENT OF CHANGES IN COST OF PROPERTY, PLANT AND EQUIPMENT FOR THE YEAR ENDED DECEMBER 31, 2023 (EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

Refer to Note 6(8) for the information related to property, plant and equipment.

~78~

STANDARD CHEM. & PHARM. CO., LTD. STATEMENT OF CHANGES IN ACCUMULATED DEPRECIATION OF PROPERTY, PLANT AND EQUIPMENT FOR THE YEAR ENDED DECEMBER 31, 2023

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

Refer to Note 6(8) for the information related to property, plant and equipment and Note 4(15) for the method to determine depreciation and useful lives for assets.

~79~

STANDARD CHEM. & PHARM. CO., LTD. STATEMENT OF CHANGES IN COST OF INVESTMENT PROPERTY FOR THE YEAR ENDED DECEMBER 31, 2023

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

[Refer to Note 6(10) for the nformation related to investment property.]

~80~

STANDARD CHEM. & PHARM. CO., LTD. STATEMENT OF CHANGES IN ACCUMULATED DEPRECIATION OF INVESTMENT PROPERTY

FOR THE YEAR ENDED DECEMBER 31, 2023

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

Refer to Note 6(10) for the information related to investment property and Note 4(17) for the method to determine depreciation and useful lives for.

~81~

STANDARD CHEM. & PHARM. CO., LTD. STATEMENT OF CHANGES IN DEFERRED TAX ASSETS FOR THE YEAR ENDED DECEMBER 31, 2023 (EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

Refer to Note 6(25) for the information related to income tax.

~82~

STANDARD CHEM. & PHARM. CO., LTD. STATEMENT OF GUARANTEE DEPOSITS PAID DECEMBER 31, 2023

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

Client Name Description Company B Performance guarantee Company C Performance guarantee Company D Performance guarantee Company E Performance guarantee Company F Performance guarantee Others (individually less than 5%) Performance guarantee, Lease deposit and bid bond	Amount Note 10,523 $ － 7,493 － 6,134 － 3,740 － 2,770 － 7,631 － 38,291 $

~83~

STANDARD CHEM. & PHARM. CO., LTD. STATEMENT OF SHORT-TERM BORROWINGS DECEMBER 31, 2023

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

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

Ending Interest
Nature Description Balance Contract Period Rate Credit Line Collateral
----- End of picture text -----

Unsecured bank borrowings Citibank Taiwan Ltd. Yuanta Commercial Bank Co., Ltd. Taishin International Bank Yuanta Commercial Bank Co., Ltd. Taishin International Bank Taishin International Bank	210,000 $ 2023.11.21~2024.02.19 1.58% USD 7,000 thousand None 100,000 2023.12.12~2024.02.22 1.66% 300,000 None 60,000 2023.10.26~2024.01.24 1.66% 100,000 None 50,000 2023.11.24~2024.02.22 1.66% 300,000 None 30,000 2023.10.16~2024.01.12 1.66% 100,000 None 10,000 2023.11.09~2024.02.07 1.66% 100,000 None 460,000 $

~84~

STANDARD CHEM. & PHARM. CO., LTD. STATEMENT OF CONTRACT LIABILITIES - CURRENT DECEMBER 31, 2023

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

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

Client Name Description Amount Note
----- End of picture text -----

Company A Advance sales receipts Company B Advance sales receipts Others (Individually less than 5%) Advance sales receipts	6,056 $ － 2,930 － 25,913 － 34,899 $

~85~

STANDARD CHEM. & PHARM. CO., LTD. STATEMENT OF NOTES PAYABLE DECEMBER 31, 2023

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

==> picture [506 x 77] intentionally omitted <==

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

Client Name Description Amount Note
－
Company C Notes payable $ 12,311
－
Company D Notes payable 8,385
－
Others (individually less than 5%) Notes payable 113,620
$ 134,316
----- End of picture text -----

~86~

STANDARD CHEM. & PHARM. CO., LTD. STATEMENT OF ACCOUNTS PAYABLE DECEMBER 31, 2023

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

Client Name Non-related parties: Company E Company F Company G Others (individually less than 5%) Related parties: Syngen Biotech Co., Ltd. Souriree Biotech & Pharm. Co., Ltd. Syn-Tech Chem & Pharm Co., Ltd. Sun You Biotech Pharm Co., Ltd.	Description Accounts payable Accounts payable Accounts payable Accounts payable Accounts payable Accounts payable Accounts payable Accounts payable	Amount 13,582 $ 9,261 6,706 92,122 121,671 23,030 13,266 6,525 2,268 45,089 166,760 $	Note
			－ － － － － － － －

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STANDARD CHEM. & PHARM. CO., LTD. STATEMENT OF OTHER PAYABLES DECEMBER 31, 2023

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

Item Description Wages and salaries payable － Provision for employee benefits － Employees' compensation and directors' remuneration payable － Others (individually less than 5%) －	Amount	Note
	117,595 $ 26,853 22,207 86,042 252,697 $	－ － － －

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STANDARD CHEM. & PHARM. CO., LTD. STATEMENT OF INCOME TAX LIABILITIES DECEMBER 31, 2023

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

Item Corporate income tax payable Tax payable on undistributed earnings	Description Amount Note － 96,261 $ － － 12,260 － 108,521 $

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STANDARD CHEM. & PHARM. CO., LTD. STATEMENT OF CHANGES IN DEFERRED TAX LIABILITIES FOR THE YEAR ENDED DECEMBER 31, 2023

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

[Refer to Note 6(25) for the information related to income tax.]

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STANDARD CHEM. & PHARM. CO., LTD. STATEMENT OF CHANGES IN NET DEFINED BENEFIT LIABILITY - NON-CURRENT FOR THE YEAR ENDED DECEMBER 31, 2023

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

[Refer to Note 6(13) for the information related to pensions.]

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STANDARD CHEM. & PHARM. CO., LTD. STATEMENT OF OPERATING REVENUE FOR THE YEAR ENDED DECEMBER 31, 2023

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

==> picture [506 x 202] intentionally omitted <==

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

Item Volume Subtotal Total Note
Medicine:
Troche 1,436,637 thousand $ 2,034,706 －
－
Ampoule 9,101 thousand 270,681
－
Capsule 145,365 thousand 261,264
－
Liquids 817,714 L 320,609
Others 213,257 $ 3,100,517 －
－
Dietary supplement 129,680
Others 4,749 －
3,234,946
－
Less: Sales returns, discounts and allowances ( 245,311)
Operating revenue $ 2,989,635
----- End of picture text -----

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STANDARD CHEM. & PHARM. CO., LTD. STATEMENT OF OPERATING COSTS FOR THE YEAR ENDED DECEMBER 31, 2023

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

	Item		Amount
Merchandise at January 1, 2023		$	48,366
Add : Merchandise purchased			178,716
Less : Transferred to expenses		(	1,007)
Scrapped		(	300)
Merchandise at December 31, 2023		(	49,060)
Merchandise sold during the year			176,715
Raw materials at January 1, 2023			185,304
Add : Raw materials purchased			623,065
Work in process transfer	in		421
Supplies transfer in			20
Gain on physical inventory			573
Less : Transferred to expenses		(	3,072)
Scrapped		(	1,709)
Raw materials sold		(	2)
Raw materials at December 31,	2023	(	225,052)
Raw materials used during the year			579,548
Supplies at January 1, 2023			37,174
Add : Supplies purchased			219,853
Gain on physical inventory			416
Less : Transferred to expenses		(	3,111)
Transferred to raw materials		(	20)
Scrapped		(	1,060)
Supplies sold		(	2)
Supplies at December 31, 2023		(	42,447)
Supplies used during the year			210,803
Direct labour			175,670
Manufacturing overhead			455,148
Manufacturing cost			1,421,169

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STANDARD CHEM. & PHARM. CO., LTD. STATEMENY OF OPERATING COSTS (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2023

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

Work in process at January 1, 2023 Less: Transferred to expenses Transferred to raw materials Loss on physical inventory Scrapped Work in process at December 31, 2023 Cost of finished goods Finished goods at January 1, 2023 Less: Transferred to expenses Scrapped Finished goods at December 31, 2023 Cost of production and marketing Cost of finished goods sold Cost of raw materials sold Cost of supplies sold Cost of inventory sold Losses on scrapped inventory Provision for inventory market price decline Gain on physical inventory Operating costs Item

Amount

76,836 $ 870) ( 421) ( 4) ( 3,490) ( 75,717) ( 1,417,503 227,347 5,387) ( 4,056) ( 328,267) ( 1,307,140 1,483,855 2 2 1,483,859 10,615 3,760 985) ( 1,497,249 $

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STANDARD CHEM. & PHARM. CO., LTD. STATEMENT OF MANUFACTURING OVERHEAD FOR THE YEAR ENDED DECEMBER 31, 2023

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

Item Wages and salaries Depreciation Utilities Repair and maintenance Others (individually less than 5%)	Description － － － － －	Amount 166,805 $ 74,415 38,460 23,228 152,240 455,148 $	Note
			－ － － － －

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STANDARD CHEM. & PHARM. CO., LTD. STATEMENT OF SELLING EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2023

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

Item	Description		Amount	Note
Wages and salaries Commission Travel expenses Others (individually less than 5%)	－ － － －		229,511 $ 63,461 29,030 136,438 458,440 $	－ － － －

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STANDARD CHEM. & PHARM. CO., LTD. STATEMENT OF ADMINISTRATIVE EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2023

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

Item	Description		Amount	Note
Wages and salaries Insurance Professional service fees Others (individually less than 5%)	－ － － －		101,950 $ 16,108 15,574 52,608 186,240 $	－ － － －

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STANDARD CHEM. & PHARM. CO., LTD. STATEMENT OF RESEARCH AND DEVELOPMENT EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2023

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

Item	Description		Amount	Note
Wages and salaries Research expenses Depreciation Others (individually less than 5%)	－ － － －		55,127 $ 96,589 12,053 25,336 189,105 $	－ － － －

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STANDARD CHEM. & PHARM. CO., LTD. STATEMENT OF OTHER INCOME FOR THE YEAR ENDED DECEMBER 31, 2023 (EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

Refer to Note 6(20) for the information related to other income.

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STANDARD CHEM. & PHARM. CO., LTD. STATEMENT OF SUMMARY OF EMPLOYEE BENEFITS, DEPRECIATION, AND AMORTIZATION EXPENSES IN CURRENT PERIOD FOR THE YEAR ENDED DECEMBER 31, 2023

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

Refer to Note 6(23) for the additional information related to expenses

and Note 6(24) for the information related to employee benefits.

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