SINBON Electronics - Interim / Quarterly Report 2024

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS WITH REVIEW REPORT OF INDEPENDENT AUDITORS

FOR THE SIX-MONTH PERIODS ENDED 30 JUNE 2024 AND 2023

Address: No.582, Kuo-Hwa Rd., Miaoli 360, Taiwan, R.O.C. Telephone: 886-37-330-099

The reader is advised that these consolidated financial statements have been prepared originally in Chinese. In the event of a conflict between these financial statements and the original Chinese version or difference in interpretation between the two versions, the Chinese language financial statements shall prevail.

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安永聯合會計師事務所

40756 台中市市政北七路186號26樓 26F, No.186, Shizheng N. 7th Road, Taichung City, Taiwan, R.O.C

電話 Tel: 886 4 2259 8999 傳真 Fax: 886 4 2259 7999 www.ey.com/tw

Independent Auditors’ Review Report

To SINBON Electronics Co., Ltd.

Introduction

We have reviewed the accompanying consolidated balance sheets of SINBON Electronics Co., Ltd. (the “Company”) and its subsidiaries as of 30 June 2024 and 2023, the related consolidated statements of comprehensive income for the three-month and six-month periods ended 30 June 2024 and 2023, and consolidated statements of changes in equity and cash flows for the six-month periods ended 30 June 2024 and 2023, and notes to the consolidated financial statements, including the summary of material accounting policies (collectively “the consolidated financial statements”). Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, “Interim Financial Reporting” as endorsed and became effective by Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on these consolidated financial statements based on our reviews.

Scope of Review

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

Basis for Qualified Conclusion

As explained in Note 4(3), the financial statements of certain insignificant subsidiaries were not reviewed by independent auditors. Those statements reflected total assets of NT$8,088,231 thousand and NT$8,897,857 thousand, constituting 28% and 27% of the consolidated total assets, and total liabilities of NT$2,023,891 thousand and NT$3,746,630 thousand, constituting 13% and 18% of the consolidated total liabilities as of 30 June 2024 and 2023; and total comprehensive income of NT$198,198 thousand, NT$(389,827) thousand, NT$289,507 thousand and NT$(169,157) thousand, constituting 20%, (76)%, 14% and (11)% of the consolidated total comprehensive income for the three-month and six-month periods ended 30 June 2024 and 2023, respectively. As explained in Note 6(7), the financial statements of certain associates and joint ventures accounted for under the equity method were not reviewed by independent auditors. Those associates and joint ventures under equity method amounted to NT$813,041 thousand and NT$807,194 thousand as of 30 June 2024 and 2023. The related shares of profits from the associates and joint ventures under the equity method amounted to NT$43,589 thousand, NT$31,397 thousand, NT$83,342 thousand and NT$50,614 thousand, and the related shares of other comprehensive income from the associates and joint ventures under the equity method amounted to NT$11,775 thousand, NT$13,808 thousand, NT$(221) thousand and NT$71,700 thousand for the three-month and six-month periods ended 30 June 2024 and 2023, respectively. The information related to the above subsidiaries, and associates and joint ventures accounted for under the equity method disclosed in Note 13 was also not reviewed by independent auditors.

A member firm of Ernst & Young Global Limited

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Qualified Conclusion

Based on our reviews, except for the effect of such adjustments, if any, as might have been determined to be necessary had the financial statements of certain insignificant subsidiaries, associates and joint ventures accounted for using equity method been reviewed by independent auditors, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Company and its subsidiaries as at 30 June 2024 and 2023, and their consolidated financial performance and cash flows for the three-month and six-month periods ended 30 June 2024 and 2023, in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, “Interim Financial Reporting” as endorsed and became effective by Financial Supervisory Commission of the Republic of China.

/s/Lo, Wen Chen

/s/Chen, Ming Hung

Ernst & Young, Taiwan 19 July 2024

Notice to Readers

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

A member firm of Ernst & Young Global Limited

English Translation of Consolidated Financial Statements Originally Issued in Chinese SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

30 June 2024, 31 December 2023 and 30 June 2023

(Expressed in Thousands of New Taiwan Dollars)

Assets	Notes		As of
		30 June 2024	31 December 2023	30 June 2023
Current assets Cash and cash equivalents Financial assets at fair value through profit or loss, current Financial assets measured at amortized cost, current Contract assets, current Notes receivable, net Accounts receivable, net Other receivables Current income tax assets Inventories Prepayments Other current assets Total current assets Non-current assets Financial assets at fair value through other comprehensive income, non-current Investments accounted for using the equity method Property, plant and equipment Right-of-use assets Other intangible assets Deferred tax assets Other non-current assets Total non-current assets	4,6(1) 4,6(2) 4 4,6(17) 4,6(3) 4,6(4) 4 4,6(5) 4,6(6) 4,6(7) 4,6(8) 4,6(19) 4 4,6(9)	$5,843,703 425,919 81,030 294,061 1,696,664 6,808,303 345,185 14,151 7,683,254 294,053 49,662	$5,767,074 297,627 80,389 332,941 1,739,602 5,828,540 185,218 41,612 10,326,128 306,262 113,955	$6,854,089 290,594 1,370 - 1,833,571 6,598,912 360,367 60 11,137,588 445,466 39,051
		23,535,985	25,019,348	27,561,068
		396,930 813,041 3,074,183 317,443 23,515 247,786 454,808	435,533 850,957 3,209,845 329,008 25,404 330,006 382,955	443,776 807,194 2,968,885 357,357 39,553 337,851 563,087
		5,327,706	5,563,708	5,517,703

$28,863,691 $30,583,056 $33,078,771

Total assets

(continued)

English Translation of Consolidated Financial Statements Originally Issued in Chinese SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Continued) 30 June 2024, 31 December 2023 and 30 June 2023

(Expressed in Thousands of New Taiwan Dollars)

Liabilities andEquity	Notes		As of
		30 June 2024	31 December 2023	30 June 2023
Current liabilities Short-term loans Financial liabilities at fair value through profit or loss, current Contract liabilities, current Notes payable Accounts payable Other payables Current tax liabilities Lease liabilities, current Bonds payable, current portion Long-term loans, current portion Other current liabilities Total current liabilities Non-current liabilities Financial liabilities at fair value through profit or loss, non-current Bonds payable Long-term loans Deferred tax liabilities Lease liabilities, non-current Long-term deferred revenue Net defined benefit obligation, non-current Other non-current liabilities-others Total non-current liabilities Total liabilities Equity attributable to the parent company Capital Common stock Certificate of entitlement to new shares from convertible bond Subtotal Additional Paid-in Capital Retained earnings Legal reserve Special reserve Unappropriated earnings Subtotal Other components of equity Exchange differences on translation of foreign operations Unrealized gains or losses measured at fair value through other comprehensive income Subtotal Equity attributable to the parent company Non-controlling interests Total equity Total liabilities and equity	4,6(10) 4,6(11) 4,6(17) 6(12) 4 4,6(19) 4,6(13) 4 4,6(11) 4,6(13) 4 4 4,6(19) 4,6(14) 4 6(16) 6(16) 4 4,6(16)	$1,389,742 579 2,674,354 491,550 4,354,836 3,973,368 493,290 85,570 806,142 10,941 55,031	$2,552,289 1,488 5,227,827 672,579 4,141,159 1,770,085 400,576 89,041 799,113 14,797 139,474	$3,063,490 1,152 5,320,534 1,081,765 5,072,765 3,794,239 447,978 90,427 35,596 8,273 97,728
		14,335,403	15,808,428	19,013,947
		- - 1,279 532,872 189,446 13,436 32,049 233	- - 2,061 576,058 198,741 13,217 40,530 233	91 872,982 11,288 482,049 225,622 13,253 46,805 231
		769,315	830,840	1,652,321
		15,104,718	16,639,268	20,666,268
		2,400,332 -	2,400,332 -	2,390,560 4,901
		2,400,332	2,400,332	2,395,461
		3,064,735	3,064,782	2,943,069
		2,344,143 401,039 5,501,678	2,015,862 270,696 6,417,199	2,015,862 270,696 4,939,887
		8,246,860	8,703,757	7,226,445
		(212,775) 77,794	(528,593) 127,553	(592,099) 187,218
		(134,981)	(401,040)	(404,881)
		13,576,946 182,027	13,767,831 175,957	12,160,094 252,409
		13,758,973	13,943,788	12,412,503
		$28,863,691	$30,583,056	$33,078,771

(The accompanying notes are an integral part of the consolidated financial statements)

English Translation of Consolidated Financial Statements Originally Issued in Chinese

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the six-month periods ended 30 June 2024 and 2023

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

Notes	3-monthperiods ended 30 June	3-monthperiods ended 30 June	6-monthperiods ended 30 June	6-monthperiods ended 30 June
	2024	2023	2024	2023
4,6(17) 6(5.20) 6(20),7 4,6(18) 6(21) 4,6(7) 4,6(23) 6(22) 4,6(24)	$8,305,344 (6,177,077)	$8,723,328 (6,481,585)	$16,341,230 (12,139,339)	$17,189,001 (12,735,624)
	2,128,267	2,241,743	4,201,891	4,453,377
	(381,638) (492,941) (292,840) (286)	(430,388) (311,840) (238,769) (719,996)	(780,551) (957,164) (569,596) (34,407)	(906,393) (679,565) (465,621) (732,046)
	(1,167,705)	(1,700,993)	(2,341,718)	(2,783,625)
	960,562	540,750	1,860,173	1,669,752
	34,189 173,938 (1,751) (13,917) 43,589	19,032 136,200 188,976 (30,009) 31,397	52,366 242,502 217,425 (30,073) 83,342	25,670 235,006 176,691 (59,369) 50,614
	236,048	345,596	565,562	428,612
	1,196,610 (259,533)	886,346 (186,605)	2,425,735 (577,135)	2,098,364 (463,865)
	937,077	699,741	1,848,600	1,634,499
	(36,343) 10,106 93,102 1,669 (18,075)	15,819 21,354 (274,217) (7,546) 54,834	(38,663) (10,663) 384,439 10,442 (74,607)	21,277 77,217 (269,518) (5,517) 54,085
	50,459	(189,756)	270,948	(122,456)
	$987,536	$509,985	$2,119,548	$1,512,043
	$935,446 1,631	$912,003 (212,262)	$1,846,988 1,612	$1,805,494 (170,995)
	$937,077	$699,741	$1,848,600	$1,634,499
	$984,661 2,875	$711,925 (201,940)	$2,113,478 6,070	$1,671,310 (159,267)
	$987,536	$509,985	$2,119,548	$1,512,043
	$3.90	$3.82	$7.69	$7.57
	$3.86	$3.78	$7.62	$7.47

(The accompanying notes are an integral part of the consolidated financial statements)

English Translation of Consolidated Financial Statements Originally Issued in Chinese SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY For the six-month periods ended 30 June 2024 and 2023

(Expressed in Thousands of New Taiwan Dollars)

			EquityAttri	butable to the Parent Company	butable to the Parent Company				Non- Controlling Interests	Total Equity
Capital		Additional Paid-inCapital		Retained earnings		Other compo	nents of equity	Total
Common stock	Certificate of Entitlement to New Shares From Convertible Bond		Legal Reserve	Special Reserve	Unappropriated Earnings	Exchange Differences on Translation of Foreign Operations	Unrealized Gains (Losses) on Equity Instruments Measured at Fair Value Through Other Comprehensive Income
$2,365,841	$19,200	$3,067,205 2,574	$1,727,300 288,562	$381,975 (111,279)	$5,342,675 (288,562) (2,030,999) 111,279 1,805,494	$(359,257) (232,842)	$88,560 98,658	$12,633,499 - (2,030,999) - 1,805,494 (134,184) 2,574	$839,565 (170,995) 11,728	$13,473,064 - (2,030,999) - 1,634,499 (122,456) 2,574
-	-	-	-	-	1,805,494	(232,842)	98,658	1,671,310	(159,267)	1,512,043
24,719	(14,299)	213,976 (340,686)						224,396 (340,686)	(427,889)	224,396 (340,686) (427,889)
$2,390,560	$4,901	$2,943,069	$2,015,862	$270,696	$4,939,887	$(592,099)	$187,218	$12,160,094	$252,409	$12,412,503
$2,400,332	$ -	$3,064,782 (47)	$2,015,862 328,281	$270,696 130,343	$6,417,199 (328,281) (2,304,318) (130,343) 1,846,988 57	$(528,593) 315,816 2	$127,553 (49,326) (57)	$13,767,831 - (2,304,318) - 1,846,988 266,490 (45)	$175,957 1,612 4,458	$13,943,788 - (2,304,318) - 1,848,600 270,948 (45)
-	-	-	-	-	1,846,988	315,816	(49,326)	2,113,478	6,070	2,119,548
					376		(376)	-		-
$2,400,332	$-	$3,064,735	$2,344,143	$401,039	$5,501,678	$(212,775)	$77,794	$13,576,946	$182,027	$13,758,973

(The accompanying notes are an integral part of the consolidated financial statements)

English Translation of Consolidated Financial Statements Originally Issued in Chinese

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the six-month periods ended 30 June 2024 and 2023

(Expressed in Thousands of New Taiwan Dollars)

Cash flows from operating activities: Net income before tax Adjustments to reconcile net income before tax to net cash provided by operating activities: Income and expense adjustments: Depreciation Amortization Expected credit loss (Gains) losses of financial assets/liabilities at fair value through profit or loss Interest expense Interest income Dividend income Gains on disposal of investments Share of profit of associates and joint ventures Losses on disposal of property, plant and equipment Amortization of deferred government grants Losses on disposal of right-of-use assets Changes in operating assets and liabilities: Decrease in contract assets Decrease (increase) in notes receivable Increase in accounts receivable (Increase) decrease in other receivables Decrease in inventories, net Decrease in prepayments Decrease in other current assets (Decrease) increase in contract liabilities (Decrease) increase in notes payable Increase (decrease) in accounts payable Decrease in other payables (Decrease) increase in other current liabilities Decrease in net defined benefit liability Cash generated from operations Interest received Dividends received Interest paid Income taxes paid Net cash provided by operating activities	6-monthperiods ended 30 June	6-monthperiods ended 30 June
	2024	2023
	$2,425,735 352,142 23,254 34,407 (132,289) 30,073 (52,366) (81,639) (18,056) (83,342) 2,465 (183) - 38,880 42,938 (1,014,170) (44,843) 2,642,874 12,209 64,293 (2,553,473) (181,029) 213,677 (100,118) (84,443) (8,481)	$2,098,364 253,770 21,112 732,046 4,358 59,369 (25,670) (33,945) - (50,614) 1,891 (183) 45 - (76,420) (193,363) 81,918 1,118,557 230,838 25,401 339,838 482,503 (1,177,508) (135,095) 38,334 (6,696)
	1,528,515	3,788,850
	51,186 81,639 (23,961) (492,533)	25,670 33,945 (50,260) (373,466)
	1,144,846	3,424,739

(Continued)

English Translation of Consolidated Financial Statements Originally Issued in Chinese SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)

For the six-month periods ended 30 June 2024 and 2023

(Expressed in Thousands of New Taiwan Dollars)

Cash flows from investing activities: comprehensive income Proceeds from capital reduction of financial assets at fair value through other comprehensive income Acquisition of financial assets measured at amortized cost Proceeds from financial assets at fair value through profit or loss, current Proceeds from disposal of investments accounted for using equity method Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Decrease in other intangible assets Increase in other non-current assets Proceeds from disposal of right-of-use assets Net cash used in investing activities Cash flows from financing activities: Decrease in short-term loans Decrease in long-term loans (including current portion) Decrease in deposits received Cash payments for the principal portion of the lease liability Decrease in non-controlling interests Net cash used in financing activities Effect of exchange rate changes on cash and cash equivalents Net increase in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period Acquisition of financial assets at fair value through other	6-monthperiods ended 30 June	6-monthperiods ended 30 June
	2024	2023
	(641) 3,089 25,104 (143,345) 31,988 1,889 (89,010) - - -	(1,370) - - (187,722) 29,035 1,869 (51,745) 24,878 (75,000) 11,351
	(170,926)	(248,704)
	(1,162,547) (4,638) - (48,805) -	(394,195) (2,021) (2) (54,040) (752,157)
	(1,215,990)	(1,202,415)
	318,699	(228,288)
	76,629 5,767,074	1,745,332 5,108,757
	$5,843,703	$6,854,089

(The accompanying notes are an integral part of the consolidated financial statements)

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

For the Six-Month Periods Ended 30 June 2024 and 2023

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

1. History and organization

SINBON Electronics Co., Ltd. (“the Company”) was incorporated in Republic of China (R.O.C) in December 1989. The main activities of the Company include manufacturing and selling computer peripherals, connectors, wires and other parts. The shares of the Company commenced trading on Taiwan’s Over-the-Counter Market in May 2001 and were listed on the Taiwan Stock Exchange in August 2002.

2. Date and procedures of authorization of financial statements for issue

The consolidated financial statements of the Company and its subsidiaries (“the Group”) for the six-month periods ended 30 June 2024 and 2023 were authorized for issue by the Board of Directors on 19 July 2024.

3. Newly issued or revised standards and interpretations

(1) Changes in accounting policies resulting from applying for the first-time certain standards and amendments

The Group applied for the first time International Financial Reporting Standards, International Accounting Standards, and Interpretations issued, revised or amended which are recognized by Financial Supervisory Commission (“FSC”) and become effective for annual periods beginning on or after 1 January 2024. The adoption of these new standards and amendments had no material impact on the Group.

(2) Standards or interpretations issued, revised or amended, by International Accounting Standards Board (“IASB”) which are not endorsed by FSC, and not yet adopted by the Group as at the end of the reporting period are listed below.

Items	New, Revised or Amended Standards and Interpretations	Effective Date issued by IASB
a	IFRS 10 “Consolidated Financial Statements” and IAS 28 “Investments in Associates and Joint Ventures” — Sale or Contribution of Assets between an Investor and its Associate or Joint Ventures	To be determined by IASB
b	IFRS 17“Insurance Contracts”	1 January 2023
c	Lack of Exchangeability–Amendments to IAS 21	1 January 2025
d	IFRS 18“Presentation and Disclosure in Financial Statements”	1 January 2027
e	Disclosure Initiative – Subsidiaries without Public Accountability: Disclosures (IFRS 19)	1 January 2027

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(a) IFRS 10 “Consolidated Financial Statements” and IAS 28“Investments in Associates and Joint Ventures” — Sale or Contribution of Assets between an Investor and its Associate or Joint Ventures

The amendments address the inconsistency between the requirements in IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures, in dealing with the loss of control of a subsidiary that is contributed to an associate or a joint venture. IAS 28 restricts gains and losses arising from contributions of non-monetary assets to an associate or a joint venture to the extent of the interest attributable to the other equity holders in the associate or joint ventures. IFRS 10 requires full profit or loss recognition on the loss of control of the subsidiary. IAS 28 was amended so that the gain or loss resulting from the sale or contribution of assets that constitute a business as defined in IFRS 3 between an investor and its associate or joint venture is recognized in full.

IFRS 10 was also amended so that the gains or loss resulting from the sale or contribution of a subsidiary that does not constitute a business as defined in IFRS 3 between an investor and its associate or joint venture is recognized only to the extent of the unrelated investors’ interests in the associate or joint venture.

(b) IFRS 17 “Insurance Contracts”

IFRS 17 provides a comprehensive model for insurance contracts, covering all relevant accounting aspects (including recognition, measurement, presentation and disclosure requirements). The core of IFRS 17 is the General (building block) Model, under this model, on initial recognition, an entity shall measure a group of insurance contracts at the total of the fulfilment cash flows and the contractual service margin. The carrying amount of a group of insurance contracts at the end of each reporting period shall be the sum of the liability for remaining coverage and the liability for incurred claims.

Other than the General Model, the standard also provides a specific adaptation for contracts with direct participation features (the Variable Fee Approach) and a simplified approach (Premium Allocation Approach) mainly for short-duration contracts.

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

IFRS 17 was issued in May 2017 and it was amended in 2020 and 2021. The amendments include deferral of the date of initial application of IFRS 17 by two years to annual beginning on or after 1 January 2023 (from the original effective date of 1 January 2021); provide additional transition reliefs; simplify some requirements to reduce the costs of applying IFRS 17 and revise some requirements to make the results easier to explain. IFRS 17 replaces an interim Standard – IFRS 4 Insurance Contracts – from annual reporting periods beginning on or after 1 January 2023.

These amendments specify whether a currency is exchangeable into another currency and, when it is not, to determining the exchange rate to use and the disclosures to provide. The amendments apply for annual reporting periods beginning on or after 1 January 2025.

(d) IFRS 18 “Presentation and Disclosure in Financial Statements”

The main changes in the new standard are as below:

(1) Improved comparability in the statement of profit or loss (income statement)

IFRS 18 requires entities to classify all income and expenses within their statement of profit or loss into one of five categories: operating; investing; financing; income taxes; and discontinued operations. The first three categories are new, to improve the structure of the income statement, and requires all entities to provide new defined subtotals, including operating profit or loss. The improved structure and new subtotals will give investors a consistent starting point for analyzing entities’ performance and make it easier to compare entities.

(2) Enhanced transparency of management-defined performance measures

IFRS 18 requires entities to disclose explanations of those entity-specific measures that are related to the income statement, referred to as management-defined performance measures.

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(3) Useful grouping of information in the financial statements

IFRS 18 sets out enhanced guidance on how to organize information and whether to provide it in the primary financial statements or in the notes. The changes are expected to provide more detailed and useful information. IFRS 18 also requires entities to provide more transparency about operating expenses, helping investors to find and understand the information they need.

IFRS 18 replaces IAS 1 Presentation of Financial Statements. IFRS 18 is effective for annual reporting periods beginning on or after 1 January 2027.

(e) Disclosure Initiative – Subsidiaries without Public Accountability: Disclosures (IFRS 19)

This standard permits subsidiaries without public accountability to provide reduced disclosures when applying IFRS Accounting Standards in their financial statements. IFRS 19 is optional for subsidiaries that are eligible and sets out the disclosure requirements for subsidiaries that elect to apply it.

The above mentioned standards and interpretations issued by IASB have not yet endorsed by FSC at the date when the Group’s financial statements were authorized for issue, the local effective dates are to be determined by FSC. As the Group is still currently determining the potential impact of the new or amended standards and interpretations listed under (d), it is not practicable to estimate their impact on the Group at this point in time. Besides this, The remaining new or amended standards and interpretations have no material impact on the Group.

4. Summary of material accounting policies

(1) Statement of Compliance

The consolidated financial statements of the Group for the six-month periods ended 30 June 2024 and 2023 have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers (“the Regulations”) and IAS 34 Interim Financial Reporting as endorsed and became effective by the FSC.

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(2) Basis of Preparation

The consolidated financial statements have been prepared on a historical cost basis, except for financial instruments that have been measured at fair value. The consolidated financial statements are expressed in thousands of New Taiwan Dollars (“NT$”) unless otherwise stated.

(3) Basis of Consolidation

Preparation principle of consolidated financial statement

Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Specifically, the Group controls an investee if and only if the Group has:

(a) power over the investee (i.e., existing rights that give it the current ability to direct the relevant activities of the investee)
(b) exposure, or rights, to variable returns from its involvement with the investee, and
(c) the ability to use its power over the investee to affect its returns

When the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing whether it has power over an investee, including:

(a) the contractual arrangement with the other vote holders of the investee
(b) rights arising from other contractual arrangements
(c) the Group’s voting rights and potential voting rights

The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control.

Subsidiaries are fully consolidated from the acquisition date, being the date on which the Group obtains control, and continue to be consolidated until the date that such control ceases. The financial statements of the subsidiaries are prepared for the same reporting period as the parent company, using uniform accounting policies. All intra-group balances, income and expenses, unrealized gains and losses and dividends resulting from intra-group transactions are eliminated in full.

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

A change in the ownership interest of a subsidiary, without a change of control, is accounted for as an equity transaction.

Total comprehensive income of the subsidiaries is attributed to the owners of the parent and to the non-controlling interests even if this results in the noncontrolling interests having a deficit balance.

If the Group loses control of a subsidiary, it:

(a) derecognizes the assets (including goodwill) and liabilities of the subsidiary;
(b) derecognizes the carrying amount of any non-controlling interest;
(c) recognizes the fair value of the consideration received;
(d) recognizes the fair value of any investment retained;
(e) reclassifies the parent’s share of components previously recognized in other comprehensive income to profit or loss, or transfer directly to retained earnings if required by other IFRSs; and
(f) recognizes any resulting difference in profit or loss.

The consolidated entities are listed as follows:

Investor	Subsidiary	Main businesses	Percentage of ownership (%)	Percentage of ownership (%)	Percentage of ownership (%)	Note
			30 June 2024	31 December 2023	30 June 2023
The Company	SINBON International Enterprise Co.,Ltd.(SB BVI)	Holding company	100.00%	100.00%	100.00%
The Company	Hong Kong SINBON Electronics Co.,Ltd.(HKSB)	Selling a wide variety of connectors,wires and cables	100.00%	100.00%	100.00%
The Company	Kwan-Ze Corporation Ltd. (Kwan-Ze)	Selling a wide variety of electronic materials and holding company	100.00%	100.00%	100.00%
The Company	SINBON USA L.L.C. (SINBON USA)	Logistic center	100.00%	100.00%	100.00%
The Company	Beijing SINBON TongAn Renewable Energy Co., Ltd. (BJSB TongAn)	Manufacturing and selling a wide variety of connectors, wires and cables	99.92%	99.92%	99.92%
The Company	SINBON Europe GmbH (SB Europe)	Logistic center	100.00%	100.00%	100.00%
The Company	Radbon Electronics Co., Ltd. (Radbon)	Manufacturing and selling a wide variety of connectors, wires and cables	100.00%	100.00%	55.00%	Note1 Note2

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Investor	Subsidiary	Main businesses	Percentage of ownership (%)	Percentage of ownership (%)	Percentage of ownership (%)	Note
			30 June 2024	31 December 2023	30 June 2023
The Company	T-CONN Precision Co., Ltd. (T-CONN)	Manufacturing and selling a wide variety of connectors, wires and cables	56.15%	56.15%	57.45%	Note3
The Company	SINBON Hungary Kft (SB Hungary)	Manufacturing and selling a wide variety of connectors, wires and cables	100.00%	100.00%	100.00%
The Company	SINTOP Energy Management Co., Ltd. (SINTOP)	Renewable energy investment management consulting business	53.57%	53.57%	53.57%
The Company	SINBON Electronics Mexico, S. DE R.L. DE C.V. (SB Mexico)	Manufacturing and trading of electronic components	99.00%	99.00%	-	Note4
Kwan-Ze	SINBON Electronics Mexico, S. DE R.L. DE C.V. (SB Mexico)	Manufacturing and trading of electronic components	1.00%	1.00%	-	Note4
SB BVI	Jiangyin SINBON Electronics Co., Ltd. (JYSB)	Manufacturing and selling a wide variety of connectors, wires and cables	100.00%	100.00%	100.00%
SB BVI	Shenzhen SINBON Electronics Co.,Ltd.(SZSB)	Selling a wide variety of connectors,wires and cables	100.00%	100.00%	100.00%
SB BVI	Shanghai SINBON Electronics Co.,Ltd. (SHSB)	Selling a wide variety of connectors and cables	100.00%	100.00%	100.00%
SB BVI	Tong Cheng SINBON Electronics Co., Ltd. (TCSB)	Manufacturing and selling a wide variety of connectors, wires and cables	100.00%	100.00%	100.00%
T-CONN	T-CONN Precision (Zhongshan) Co., Ltd. (T-CONN Zhongshan)	Manufacturing and selling a wide variety of connectors, wires and cables	56.15%	56.15%	57.45%	Note3
JYSB	Beijing SINBON TongAn Renewable Energy Co., Ltd. (BJSB TongAn)	Manufacturing and selling a wide variety of connectors, wires and cables	0.08%	0.08%	0.08%
BJSB TongAn	Beijing SINBON Electronics Co., Ltd. (BJSB)	Manufacturing and selling a wide variety of connectors, wires and cables	100.00%	100.00%	100.00%
BJSB TongAn	ENMAGIC Renewable Energy Co., Ltd. (TWEM)	Manufacturing and selling a wide variety of connectors, wires and cables	100.00%	100.00%	100.00%

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Investor	Subsidiary	Main businesses	Percentage of ownership (%)	Percentage of ownership (%)	Percentage of ownership (%)
			30 June 2024	31 December 2023	30 June 2023
BJSB TongAn	Jiangsu ENMAGIC Energy Co., Ltd. (JSEM)	Manufacturing and selling a wide variety of connectors, wires and cables	100.00%	100.00%	100.00%
BJSB TongAn	Xuzhou ENMAGIC Energy Co., Ltd. (XZEM)	Development of new energy technology	100.00%	100.00%	100.00%
JSEM	Kunshan ENMAGIC Energy Co., Ltd. (KSEM)	Solar Photovoltaic Power Station Project Design, Construction, Operation, and Maintenance	100.00%	100.00%	100.00%
SINBON USA	Worldwide Wire Harnesse Co.,Ltd.(SST)	Holding Company	50.00%	50.00%	50.00%
SINBON USA	SINBON Ohio LLC (SB Ohio)	Manufacturing and selling a wide variety of connectors, wires and cables	100.00%	100.00%	100.00%
SST	SINBON Technologies Tennessee L.L.C. (STT)	Logistic Center	50.00%	50.00%	50.00%

Note 1: On 1 August 2023, the Company acquired 45% shares of Radbon. Consequently, the Company's ownership increased from 55% to 100%.

Note 2: On 8 November 2023, Radbon Avionics Inc. was approved to change its name to Radbon Electronics Co., Ltd.
Note 3: On 1 December 2023, T-CONN raised capital. However, the Group did not acquire shares according to the shareholding percentage. Therefore, the Group’s ownership dropped from 57.42% to 56.15%.

Note 4: On 25 September 2023, the Company and Kwan-Ze made a new investment to establish SB Mexico, and the Group directly holds 100% of the voting shares. On the day control was obtained, SB Mexico was included in the consolidated financial statements accordingly.

The financial statements of some of the insignificant consolidated subsidiaries listed above had not been reviewed by auditors. As of 30 June 2024 and 2023, the related assets of the subsidiaries which were unreviewed by auditors amount to NT$8,088,231 thousand and NT$8,897,857 thousand, respectively, and the related liabilities amount to NT$2,023,891 thousand and NT$3,746,630 thousand, respectively. The comprehensive income of these subsidiaries amount to NT$198,198 thousand, NT$(389,827) thousand, NT$289,507 thousand and NT$(169,157)thousand for the three-month and six-month periods ended 30 June 2024 and 2023, respectively.

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(4) Foreign currency transactions

The Group’s consolidated financial statements are presented in New Taiwan Dollars (NT$), which is also the Company’s functional currency. Each entity in the Group determines its own functional currency and items included in the financial statements of each entity are measured using that functional currency.

Transactions in foreign currencies are initially recorded by the Group’s entities at their respective functional currency rates prevailing at the date of transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency closing rates of exchange at the reporting date. Nonmonetary items measured at fair value in foreign currency are translated using the exchange rates at the date when the fair value is determined. Non-monetary items that are measured at historical cost in foreign currency are translated using the exchange rates as at the dates of the initial transactions.

All exchange differences arising on the settlement of monetary items or on translating monetary items are taken to profit or loss in the period in which they arise except for the following:

(a) Exchange differences arising from foreign currency borrowings for an acquisition of a qualifying asset to the extent that they are regarded as an adjustment to interest costs are included in the borrowing costs that are eligible for capitalization.
(b) Foreign currency items within the scope of IFRS 9 Financial Instruments are accounted for based on the accounting policy for financial instruments.
(c) Exchange differences arising on a monetary item that forms part of a reporting entity’s net investment in a foreign operation is recognized initially in other comprehensive income and reclassified from equity to profit or loss on disposal of the net investment.

When a gain or loss on a non-monetary item is recognized in other comprehensive income, any exchange component of that gain or loss is recognized in other comprehensive income. When a gain or loss on a nonmonetary item is recognized in profit or loss, any exchange component of that gain or loss is recognized in profit or loss.

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(5) Translation of financial statements in foreign currency

The assets and liabilities of foreign operations are translated into NT$ at the closing rate of exchange prevailing at the reporting date and their income and expenses are translated at an average rate for the period. The exchange differences arising on the translation are recognized in other comprehensive income. On the disposal of a foreign operation, the cumulative amount of the exchange differences relating to that foreign operation, recognized in other comprehensive income and accumulated in the separate component of equity, is reclassified from equity to profit or loss when the gain or loss on disposal is recognized. The following partial disposals are accounted for as disposals:

(a) when the partial disposal involves the loss of control of a subsidiary that includes a foreign operation; and
(b) when the retained interest after the partial disposal of an interest in a joint arrangement or a partial disposal of an interest in an associate that includes a foreign operation is a financial asset that includes a foreign operation.

On the partial disposal of a subsidiary that includes a foreign operation that does not result in a loss of control, the proportionate share of the cumulative amount of the exchange differences recognized in other comprehensive income is reattributed to the non-controlling interests in that foreign operation. In partial disposal of an associate or joint arrangement that includes a foreign operation that does not result in a loss of significant influence or joint control, only the proportionate share of the cumulative amount of the exchange differences recognized in other comprehensive income is reclassified to profit or loss.

Any goodwill and any fair value adjustments to the carrying amounts of assets and liabilities arising on the acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and expressed in its functional currency.

(6) Current and non-current distinction

An asset is classified as current when:

(a) The Group expects to realize the asset, or intends to sell or consume it, in its normal operating cycle
(b) The Group holds the asset primarily for the purpose of trading
(c) The Group expects to realize the asset within twelve months after the reporting period
(d) The asset is cash or cash equivalent unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

A liability is classified as current when:

(a) The Group expects to settle the liability in its normal operating cycle
(b) The Group holds the liability primarily for the purpose of trading
(c) The liability is due to be settled within twelve months after the reporting period
(d) The Group does not have the right at the end of the reporting period to defer settlement of the liability for at least twelve months after the reporting period.

All other liabilities are classified as non-current.

(7) Cash and cash equivalents

Cash and cash equivalents comprises cash on hand, demand deposits and shortterm, highly liquid time deposits (including ones that have maturity within 3 months) or investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

(8) Financial instruments

Financial assets and financial liabilities are recognized when the Group becomes a party to the contractual provisions of the instrument.

Financial assets and financial liabilities within the scope of IFRS 9 Financial Instruments are recognized initially at fair value plus or minus, in the case of investments not at fair value through profit or loss, directly attributable transaction costs.

(a) Financial instruments: Recognition and Measurement

The Group accounts for regular way purchase or sales of financial assets on the trade date.

The Group classified financial assets as subsequently measured at amortized cost, fair value through other comprehensive income or fair value through profit or loss considering both factors below:

A. the Group’s business model for managing the financial assets and
B. the contractual cash flow characteristics of the financial asset

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Financial assets measured at amortized cost

A financial asset is measured at amortized cost if both of the following conditions are met and presented as note receivables, accounts receivables financial assets measured at amortized cost and other receivables etc., on balance sheet as at the reporting date:

A. the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows and
B. the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Such financial assets are subsequently measured at amortized cost (the amount at which the financial asset is measured at initial recognition minus the principal repayments, plus or minus the cumulative amortization using the effective interest method of any difference between the initial amount and the maturity amount and adjusted for any loss allowance) and is not part of a hedging relationship. A gain or loss is recognized in profit or loss when the financial asset is derecognized, through the amortization process or in order to recognize the impairment gains or losses.

Interest revenue is calculated by using the effective interest method. This is calculated by applying the effective interest rate to the gross carrying amount of a financial asset except for:

A. purchased or originated credit-impaired financial assets. For those financial assets, the Group applies the credit-adjusted effective interest rate to the amortized cost of the financial asset from initial recognition.
B. financial assets that are not purchased or originated credit-impaired financial assets but subsequently have become credit-impaired financial assets. For those financial assets, the Group applies the effective interest rate to the amortized cost of the financial asset in subsequent reporting periods.

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Financial asset measured at fair value through other comprehensive income

A financial asset is measured at fair value through other comprehensive income if both of the following conditions are met:

A. the financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and
B. the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Recognition of gain or loss on a financial asset measured at fair value through other comprehensive income are described as below:

A. A gain or loss on a financial asset measured at fair value through other comprehensive income recognized in other comprehensive income, except for impairment gains or losses and foreign exchange gains and losses, until the financial asset is derecognized or reclassified.
B. When the financial asset is derecognized the cumulative gain or loss previously recognized in other comprehensive income is reclassified from equity to profit or loss as a reclassification adjustment.
C. Interest revenue is calculated by using the effective interest method. This is calculated by applying the effective interest rate to the gross carrying amount of a financial asset except for:
(i) Purchased or originated credit-impaired financial assets. For those financial assets, the Group applies the credit-adjusted effective interest rate to the amortized cost of the financial asset from initial recognition.
(ii) Financial assets that are not purchased or originated credit-impaired financial assets but subsequently have become credit-impaired financial assets. For those financial assets, the Group applies the effective interest rate to the amortized cost of the financial asset in subsequent reporting periods.

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Besides, for certain equity investments within the scope of IFRS 9 that is neither held for trading nor contingent consideration recognized by an acquirer in a business combination to which IFRS 3 applies, the Group made an irrevocable election to present the changes of the fair value in other comprehensive income at initial recognition. Amounts presented in other comprehensive income shall not be subsequently transferred to profit or loss (when disposal of such equity instrument, its cumulated amount included in other components of equity is transferred directly to the retained earnings) and these investments should be presented as financial assets measured at fair value through other comprehensive income on the balance sheet. Dividends on such investment are recognized in profit or loss unless the dividends clearly represent a recovery of part of the cost of investment.

Financial asset measured at fair value through profit or loss

Financial assets were classified as measured at amortized cost or measured at fair value through other comprehensive income based on aforementioned criteria. All other financial assets were measured at fair value through profit or loss and presented on the balance sheet as financial assets measured at fair value through profit or loss.

Such financial assets are measured at fair value, the gains or losses resulting from remeasurement is recognized in profit or loss which includes any dividend or interest received on such financial assets.

(b) Impairment of financial assets

The Group recognizes a loss allowance for expected credit losses on debt instrument investments measured at fair value through other comprehensive income and financial asset measured at amortized cost. The loss allowance on debt instrument investments measured at fair value through other comprehensive income is recognized in other comprehensive income and not reduce the carrying amount in the balance sheet.

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

The Group measures expected credit losses of a financial instrument in a way that reflects:

A. an unbiased and probability-weighted amount that is determined by evaluating a range of possible outcomes;
B. the time value of money; and
C. reasonable and supportable information that is available without undue cost or effort at the reporting date about past events, current conditions and forecasts of future economic conditions.

The loss allowance is measured as follows:

A. At an amount equal to 12-month expected credit losses: the credit risk on a financial asset has not increased significantly since initial recognition or the financial asset is determined to have low credit risk at the reporting date. In addition, the Group measures the loss allowance at an amount equal to lifetime expected credit losses in the previous reporting period, but determines at the current reporting date that the credit risk on a financial asset has increased significantly since initial recognition is no longer met.
B. At an amount equal to the lifetime expected credit losses: the credit risk on a financial asset has increased significantly since initial recognition or financial asset that is purchased or originated credit-impaired financial asset.
C. For accounts receivables or contract assets arising from transactions within the scope of IFRS 15, the Group measures the loss allowance at an amount equal to lifetime expected credit losses.
D. For lease receivables arising from transactions within the scope of IFRS 16, the Group measures the loss allowance at an amount equal to lifetime expected credit losses.

At each reporting date, the Group needs to assess whether the credit risk on a financial asset has increased significantly since initial recognition by comparing the risk of a default occurring at the reporting date and the risk of default occurring at initial recognition. Please refer to Note 12 for further details on credit risk.

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

A financial asset is derecognized when:

A. The rights to receive cash flows from the asset have expired
B. The Group has transferred the asset and substantially all the risks and rewards of the asset have been transferred
C. The Group has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

On derecognition of a financial asset in its entirety, the difference between the carrying amount and the consideration received or receivable including any cumulative gain or loss that had been recognized in other comprehensive income, is recognized in profit or loss.

(d) Financial liabilities and equity

Classification between liabilities or equity

The Group classifies the instrument issued as a financial liability or an equity instrument in accordance with the substance of the contractual arrangement and the definitions of a financial liability, and an equity instrument.

Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. The transaction costs of an equity transaction are accounted for as a deduction from equity (net of any related income tax benefit) to the extent they are incremental costs directly attributable to the equity transaction that otherwise would have been avoided.

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Compound instruments

The Group evaluates the terms of the convertible bonds issued to determine whether it contains both a liability and an equity component. Furthermore, the Group assesses if the economic characteristics and risks of the put and call options contained in the convertible bonds are closely related to the economic characteristics and risk of the host contract before separating the equity element.

For the liability component excluding the derivatives, its fair value is determined based on the rate of interest applied at that time by the market to instruments of comparable credit status. The liability component is classified as a financial liability measured at amortized cost before the instrument is converted or settled.

For the embedded derivative that is not closely related to the host contract (for example, if the exercise price of the embedded call or put option is not approximately equal on each exercise date to the amortized cost of the host debt instrument), it is classified as a liability component and subsequently measured at fair value through profit or loss unless it qualifies for an equity component. The equity component is assigned the residual amount after deducting from the fair value of the instrument as a whole the amount separately determined for the liability component. Its carrying amount is not remeasured in the subsequent accounting periods. If the convertible bond issued does not have an equity component, it is accounted for as a hybrid instrument in accordance with the requirements under IFRS 9 Financial Instruments.

Transaction costs are apportioned between the liability and equity components of the convertible bond based on the allocation of proceeds to the liability and equity components when the instruments are initially recognized.

On conversion of a convertible bond before maturity, the carrying amount of the liability component being the amortized cost at the date of conversion is transferred to equity.

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Financial liabilities

Financial liabilities within the scope of IFRS 9 Financial Instruments are classified as financial liabilities at fair value through profit or loss or financial liabilities measured at amortized cost upon initial recognition.

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated as at fair value through profit or loss. A financial liability is classified as held for trading if:

A. it is acquired or incurred principally for the purpose of selling or repurchasing it in the near term;
B. on initial recognition it is part of a portfolio of identified financial instruments that are managed together and for which there is evidence of a recent actual pattern of short-term profit-taking; or
C. it is a derivative (except for a derivative that is a financial guarantee contract or a designated and effective hedging instrument).

If a contract contains one or more embedded derivatives, the entire hybrid (combined) contract may be designated as a financial liability at fair value through profit or loss; or a financial liability may be designated as at fair value through profit or loss when doing so results in more relevant information, because either:

A. it eliminates or significantly reduces a measurement or recognition inconsistency; or
B. a group of financial liabilities or financial assets and financial liabilities is managed and its performance is evaluated on a fair value basis, in accordance with a documented risk management or investment strategy, and information about the group is provided internally on that basis to the key management personnel.

Gains or losses on the subsequent measurement of liabilities at fair value through profit or loss including interest paid are recognized in profit or loss.

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Financial liabilities at amortized cost

Financial liabilities measured at amortized cost include interest bearing loans and borrowings that are subsequently measured using the effective interest rate method after initial recognition. Gains and losses are recognized in profit or loss when the liabilities are derecognized as well as through the effective interest rate method amortization process.

Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or transaction costs.

Derecognition of financial liabilities

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires.

When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified (whether or not attributable to the financial difficulty of the debtor), such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in profit or loss.

(e) Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount reported in the balance sheet if, and only if, there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, or to realize the assets and settle the liabilities simultaneously.

(9) Derivative instrument

The Group uses derivative instruments to hedge its foreign currency risks and interest rate risks. A derivative is classified in the balance sheet as assets or liabilities at fair value through profit or loss except for derivatives that are designated effective hedging instruments which are classified as derivative financial assets or liabilities for hedging.

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Derivative instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently remeasured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative. The changes in fair value of derivatives are taken directly to profit or loss, except for the effective portion of hedges, which is recognized in either profit or loss or equity according to types of hedges used.

When the host contracts are either non-financial assets or liabilities, derivatives embedded in host contracts are accounted for as separate derivatives and recorded at fair value if their economic characteristics and risks are not closely related to those of the host contracts and the host contracts are not designated at fair value though profit or loss.

(10) Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

(a) In the principal market for the asset or liability, or
(b) In the absence of a principal market, in the most advantageous market for the asset or liability

The principal or the most advantageous market must be accessible to by the Group.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(11) Inventories

Inventories are valued at lower of cost and net realizable value item by item.

Costs incurred in bringing each inventory to its present location and condition are accounted for as follows:

Raw materials - Purchase cost under weighted average cost method.

Finished goods and work in progress - Cost of direct materials and labor and a proportion of manufacturing overheads based on normal operating capacity but excluding borrowing costs.

Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale.

Rendering of services is accounted in accordance with IFRS 15 and not within the scope of inventories.

(12) Investments accounted for using the equity method

The Group’s investment in its associate is accounted for using the equity method other than those that meet the criteria to be classified as held for sale. An associate is an entity over which the Group has significant influence. A joint venture is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint venture.

Under the equity method, the investment in the associate or an investment in a joint venture is carried in the balance sheet at cost and adjusted thereafter for the post-acquisition change in the Group’s share of net assets of the associate or joint venture. After the interest in the associate or joint venture is reduced to zero, additional losses are provided for, and a liability is recognized, only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associate or joint venture. Unrealized gains and losses resulting from transactions between the Group and the associate or joint venture are eliminated to the extent of the Group’s related interest in the associate or joint venture.

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

When changes in the net assets of an associate or a joint venture occur and not those that are recognized in profit or loss or other comprehensive income and do not affect the Group’s percentage of ownership interests in the associate or joint venture, the Group recognizes such changes in equity based on its percentage of ownership interests. The resulting capital surplus recognized will be reclassified to profit or loss at the time of disposing the associate or joint venture on a pro-rata basis.

When the associate or joint venture issues new stock, and the Group’s interest in an associate or a joint venture is reduced or increased as the Group fails to acquire shares newly issued in the associate or joint venture proportionately to its original ownership interest, the increase or decrease in the interest in the associate or joint venture is recognized in additional paid-in capital and investment accounted for using the equity method. When the interest in the associate or joint venture is reduced, the cumulative amounts previously recognized in other comprehensive income are reclassified to profit or loss or other appropriate items. The aforementioned capital surplus recognized is reclassified to profit or loss on a pro rata basis when the Group disposes the associate or joint venture.

The financial statements of the associate or joint venture are prepared for the same reporting period as the Group. Where necessary, adjustments are made to bring the accounting policies in line with those of the Group.

The Group determines at each reporting date whether there is any objective evidence that the investment in the associate or an investment in a joint venture is impaired in accordance with IAS 28 Investments in Associates and Joint Ventures . If this is the case the Group calculates the amount of impairment as the difference between the recoverable amount of the associate or joint venture and its carrying value and recognizes the amount in the ‘share of profit or loss of an associate’ in the statement of comprehensive income in accordance with IAS 36 Impairment of Assets . In determining the value in use of the investment, the Group estimates:

(a) Its share of the present value of the estimated future cash flows expected to be generated by the associate or joint venture, including the cash flows from the operations of the associate and the proceeds on the ultimate disposal of the investment; or
(b) The present value of the estimated future cash flows expected to arise from dividends to be received from the investment and from its ultimate disposal.

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Because goodwill that forms part of the carrying amount of an investment in an associate or an investment in a joint venture is not separately recognized, it is not tested for impairment separately by applying the requirements for impairment testing goodwill in IAS 36 Impairment of Assets .

Upon loss of significant influence over the associate or joint venture, the Group measures and recognizes any retaining investment at its fair value. Any difference between the carrying amount of the associate or joint venture upon loss of significant influence and the fair value of the retaining investment and proceeds from disposal is recognized in profit or loss. Furthermore, if an investment in an associate becomes an investment in a joint venture or an investment in a joint venture becomes an investment in an associate, the entity continues to apply the equity method and does not remeasure the retained interest.

(13) Property, plant and equipment

Property, plant and equipment is stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. Such cost includes the cost of dismantling and removing the item and restoring the site on which it is located and borrowing costs for construction in progress if the recognition criteria are met. 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 is depreciated separately. When significant parts of property, plant and equipment are required to be replaced in intervals, the Group recognized such parts as individual assets with specific useful lives and depreciation, respectively. The carrying amount of those parts that are replaced is derecognized in accordance with the derecognition provisions of IAS 16 Property, plant and equipment . When a major inspection is performed, its cost is recognized in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognized in profit or loss as incurred.

Depreciation is calculated on a straight-line basis over the estimated economic lives of the following assets:

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Items Buildings Machinery and equipment Transportation equipment Office equipment Other equipment Leasehold improvements	Useful Lives
	5`～`50 years 3`～`15 years 5`～`10 years 3`～`10 years 2`～`15 years Lower of leasehold years or useful lives

An item of property, plant and equipment and any significant part initially recognized is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset is recognized in profit or loss.

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate, and are treated as changes in accounting estimates.

(14) Leases

The Group assesses whether the contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset for a period of time, the Group assesses whether, throughout the period of use, has both of the following:

(a) the right to obtain substantially all of the economic benefits from use of the identified asset; and

(b) the right to direct the use of the identified asset.

For a contract that is, or contains, a lease, the Group accounts for each lease component within the contract as a lease separately from non-lease components of the contract. For a contract that contains a lease component and one or more additional lease or non-lease components, the Group allocates the consideration in the contract to each lease component on the basis of the relative stand-alone price of the lease component and the aggregate stand-alone price of the nonlease components. The relative stand-alone price of lease and non-lease components shall be determined on the basis of the price the lessor, or a similar supplier, would charge the Group for that component, or a similar component, separately. If an observable stand-alone price is not readily available, the Group estimates the stand-alone price, maximizing the use of observable information.

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Group as a lessee

Except for leases that meet and elect short-term leases or leases of low-value assets, the Group recognizes right-of-use asset and lease liability for all leases which the Group is the lessee of those lease contracts.

At the commencement date, the Group measures the lease liability at the present value of the lease payments that are not paid at that date. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined, the Group uses its incremental borrowing rate. At the commencement date, the lease payments included in the measurement of the lease liability comprise the following payments for the right to use the underlying asset during the lease term that are not paid at the commencement date:

(a) fixed payments (including in-substance fixed payments), less any lease incentives receivable;
(b) variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;
(c) amounts expected to be payable by the lessee under residual value guarantees;
(d) the exercise price of a purchase option if the Group is reasonably certain to exercise that option; and
(e) payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an option to terminate the lease.

After the commencement date, the Group measures the lease liability on an amortized cost basis, which increases the carrying amount to reflect interest on the lease liability by using an effective interest method; and reduces the carrying amount to reflect the lease payments made.

At the commencement date, the Group measures the right-of-use asset at cost. The cost of the right-of-use asset comprises:

(a) the amount of the initial measurement of the lease liability;
(b) any lease payments made at or before the commencement date, less any lease incentives received;
(c) any initial direct costs incurred by the lessee; and
(d) an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease.

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

For subsequent measurement of the right-of-use asset, the Group measures the right-of-use asset at cost less any accumulated depreciation and any accumulated impairment losses. That is, the Group measures the right-of-use applying a cost model.

If the lease transfers ownership of the underlying asset to the Group by the end of the lease term or if the cost of the right-of-use asset reflects that the Group will exercise a purchase option, the Group depreciates the right-of-use asset from the commencement date to the end of the useful life of the underlying asset. Otherwise, the Group depreciates the right-of-use asset from the commencement date to the earlier of the end of the useful life of the right-ofuse asset or the end of the lease term.

The Group applies IAS 36 “Impairment of Assets” to determine whether the right-of-use asset is impaired and to account for any impairment loss identified.

Except for those leases that the Group accounted for as short-term leases or leases of low-value assets, the Group presents right-of-use assets and lease liabilities in the balance sheet and separately presents lease-related interest expense and depreciation charge in the statements of comprehensive income.

For short-term leases or leases of low-value assets, the Group elects to recognize the lease payments associated with those leases as an expense on either a straight-line basis over the lease term or another systematic basis.

Group as a lessor

At inception of a contract, the Group classifies each of its leases as either an operating lease or a finance lease. A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership of an underlying asset. A lease is classified as an operating lease if it does not transfer substantially all the risks and rewards incidental to ownership of an underlying asset. At the commencement date, the Group recognizes assets held under a finance lease in its balance sheet and present them as a receivable at an amount equal to the net investment in the lease.

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

For a contract that contains lease components and non-lease components, the Group allocates the consideration in the contract applying IFRS 15.

The Group recognizes lease payments from operating leases as rental income on either a straight-line basis or another systematic basis. Variable lease payments for operating leases that do not depend on an index or a rate are recognized as rental income when incurred.

(15) Intangible assets

Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is its fair value as at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and accumulated impairment losses, if any. Internally generated intangible assets, excluding capitalized development costs, are not capitalized and expenditure is reflected in profit or loss for the year in which the expenditure is incurred.

The useful lives of intangible assets are assessed as either finite or indefinite.

Intangible assets with finite lives are amortized over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization period and the amortization method for an intangible asset with a finite useful life is reviewed at least at the end of each financial year. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset is accounted for by changing the amortization period or method, as appropriate, and are treated as changes in accounting estimates.

Intangible assets with indefinite useful lives are not amortized, but are tested for impairment annually, either individually or at the cash-generating unit level. The assessment of indefinite life is reviewed annually to determine whether the indefinite life continues to be supportable. If not, the change in useful life from indefinite to finite is made on a prospective basis.

Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in profit or loss when the asset is derecognized.

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

A summary of the policies applied to the Group’s intangible assets is as follows:

Useful lives Amortization method used Internally generated or acquired	Computer software
	1~15 years Amortized on a straight- line basis over the estimated useful life Acquired

(16) Impairment of non-financial assets

The Group assesses at the end of each reporting period whether there is any indication that an asset in the scope of IAS 36 Impairment of Assets may be impaired. If any such indication exists, or when annual impairment testing for an asset is required, the Group estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s (“CGU”) fair value less costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

For assets excluding goodwill, an assessment is made at each reporting date as to whether there is any indication that previously recognized impairment losses may no longer exist or may have decreased. If such indication exists, the Group estimates the asset’s or cash-generating unit’s recoverable amount. A previously recognized impairment loss is reversed only if there has been an increase in the estimated service potential of an asset which in turn increases the recoverable amount. However, the reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior years.

A cash generating unit, or groups of cash-generating units, to which goodwill has been allocated is tested for impairment annually at the same time, irrespective of whether there is any indication of impairment. If an impairment loss is to be recognized, it is first allocated to reduce the carrying amount of any goodwill allocated to the cash generating unit (group of units), then to the other assets of the unit (group of units) pro rata on the basis of the carrying amount of each asset in the unit (group of units). Impairment losses relating to goodwill cannot be reversed in future periods for any reason.

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

An impairment loss of continuing operations or a reversal of such impairment loss is recognized in profit or loss.

(17) Provisions

Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past event, it is probably that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Where the Group expects some or all of a provision to be reimbursed, the reimbursement is recognized as a separate asset but only when the reimbursement is virtually certain. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

The liability to pay a levy is recognized progressively if the obligating event occurs over a period of time.

Provision for decommissioning, restoration and rehabilitation costs

The provision for decommissioning, restoration and rehabilitation costs arose on construction of a property, plant and equipment. Decommissioning costs are provided at the present value of expected costs to settle the obligation using estimated cash flows and are recognized as part of the cost of that particular asset. The cash flows are discounted at a current pre-tax rate that reflects the risks specific to the decommissioning liability. The unwinding of the discount is expensed as incurred and recognized as a finance cost. The estimated future costs of decommissioning are reviewed annually and adjusted as appropriate. Changes in the estimated future costs or in the discount rate applied are added to or deducted from the cost of the asset.

Provision for warranties

A provision is recognized for expected warranty claims on products sold, based on past experience, management’s judgement and other known factors.

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(18) Revenue recognition

The Group’s revenue arising from contracts with customers are primarily related to sale of goods and rendering of services. The accounting policies are explained as follows:

Sale of goods

The Group manufactures and sells goods. Sales are recognized when control of the goods is transferred to the customer and the goods are delivered to the customers. The main product of the Group are computer peripherals, connectors, wires and other parts and revenue is recognized based on the consideration stated in the contract.

The Group provides its customer with a warranty with the purchase of the products. The warranty provides assurance that the product will operate as expected by the customers. And the warranty is accounted in accordance with IAS 37.

The credit period of the Group’s sale of goods is from 60 to 120 days, while the term for wind energy sales is receiving three-month term acceptance after a period of three-month from delivery due to industry characteristics. For most of the contracts, when the Group transfers the goods to customers and has a right to an amount of consideration that is unconditional, these contracts are recognized as accounts receivables. The Group usually collects the payments shortly after transfer of goods to customers; therefore, there is no significant financing component to the contract. For some of the contracts, the Group has transferred the goods to customers but does not has a right to an amount of consideration that is unconditional, these contacts should be presented as contract assets. Besides, in accordance with IFRS 9, the Group measures the loss allowance for a contract asset at an amount equal to the lifetime expected credit losses.

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Rendering of services

The Group provides maintenance services for the sale of construction for solar photovoltaic power generation system. Such services are separately priced or negotiated, and provided based on contract periods.

Most of the contractual considerations of the Group are collected evenly throughout the contract periods. When the Group has performed the services to customers but does not have a right to an amount of consideration that is unconditional, these contacts should be presented as contract assets. However, for some rendering of services contracts, part of the consideration was received from customers upon signing the contract, and the Group has the obligation to provide the services subsequently; accordingly, these amounts are recognized as contract liabilities.

The period between the transfers of contract liabilities to revenue is usually within one year, thus, no significant financing component has arisen.

Construction revenues

Contract revenue is recognized within the scope that is likely to generate revenue and can be measured reliably, including the original amount of the contract signed, plus any changes related to the contract, claims for compensation and incentive payments, etc. When the construction contract meet the following critiria, the entity recognizes revenue over time. The customer simultaneously receives and consumes all of the benefits provided by the entity as the entity performs; the entity’s performance creates or enhances an asset that the customer controls as the asset is created; or the entity’s performance does not create an asset with an alternative use to the entity and the entity has an enforceable right to payment for performance completed to date. Contract assets are recognized when the service has been transferred to the customer but the right to unconditionally receive the consideration has not yet been granted. However, there are some contracts, because part of the consideration is collected from the customer when the contract is signed, and the company assumes the obligation to provide labor services in the future, so it is recognized as a contract liability.

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Depending on the nature of the contract, the degree of completion is calculated as the proportion of contract costs incurred to date on completion of work to the estimated total contract costs. When the outcome of a construction contract cannot be estimated reliably, contract revenue is recognized only to the extent of expected cost recovery and expected contract losses are recognized immediately in profit or loss.

(19) Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective assets. All other borrowing costs are expensed in the period they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds.

(20) Government grants

Government grants are recognized where there is reasonable assurance that the grant will be received and all attached conditions will be complied with. Where the grant relates to an asset, it is recognized as deferred income and released to income in equal amounts over the expected useful life of the related asset. When the grant relates to an expense item, it is recognized as income over the period necessary to match the grant on a systematic basis to the costs that it is intended to compensate.

Where the Group receives non-monetary grants, the asset and the grant are recorded gross at nominal amounts and released to the statement of comprehensive income over the expected useful life and pattern of consumption of the benefit of the underlying asset by equal annual installments. Where loans or similar assistance are provided by governments or related institutions with an interest rate below the current applicable market rate, the effect of this favorable interest is regarded as additional government grant.

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(21) Post-employment benefits

All regular employees of the Company and its domestic subsidiaries are entitled to a pension plan that is managed by an independently administered pension fund committee. Fund assets are deposited under the committee’s name in the specific bank account and hence, not associated with the Company and its domestic subsidiaries. Therefore fund assets are not included in the Group’s consolidated financial statements. Pension benefits for employees of the overseas subsidiaries and the branches are provided in accordance with the respective local regulations.

For the defined contribution plan, the Company and its domestic subsidiaries will make a monthly contribution of no less than 6% of the monthly wages of the employees subject to the plan. The Company recognizes expenses for the defined contribution plan in the period in which the contribution becomes due. Overseas subsidiaries and branches make contribution to the plan based on the requirements of local regulations.

Post-employment benefit plan that is classified as a defined benefit plan uses the Projected Unit Credit Method to measure its obligations and costs based on actuarial assumptions. Re-measurements, comprising of the effect of the actuarial gains and losses, the effect of the asset ceiling (excluding net interest) and the return on plan assets, excluding net interest, are recognized as other comprehensive income with a corresponding debit or credit to retained earnings in the period in which they occur. Past service costs are recognized in profit or loss on the earlier of:

(a) the date of the plan amendment or curtailment, and

(b) the date that the Group recognizes restructuring-related costs

Net interest is calculated by applying the discount rate to the net defined benefit liability or asset, both as determined at the start of the annual reporting period, taking account of any changes in the net defined benefit liability (asset) during the period as a result of contribution and benefit payment.

Pension cost for an interim period is calculated on a year-to-date basis by using the actuarially determined pension cost rate at the end of the prior financial year, adjusted and disclosed for significant market fluctuations since that time and for significant curtailments, settlements, or other significant one-off events.

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(22) Income taxes

Income tax expense (income) is the aggregate amount included in the determination of profit or loss for the period in respect of current tax and deferred tax.

Current income tax

Current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities, using the tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period. Current income tax relating to items recognized in other comprehensive income or directly in equity is recognized in other comprehensive income or equity and not in profit or loss.

The income tax for undistributed earnings is recognized as income tax expense in the subsequent year when the distribution proposal is approved by the Shareholders’ meeting.

Deferred tax

Deferred tax is provided on temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.

Deferred tax liabilities are recognized for all taxable temporary differences, except:

(a) Where the deferred tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination; at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and at the time of the transaction, does not give rise to equal taxable and deductible temporary differences.
(b) In respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in joint arrangements, where the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Deferred tax assets are recognized for all deductible temporary differences, carry forward of unused tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized, except:

(a) Where the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination; at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and at the time of the transaction, does not give rise to equal taxable and deductible temporary differences.
(b) In respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint arrangements, deferred tax assets are recognized only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilized.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted at the reporting date. The measurement of deferred tax assets and deferred tax liabilities reflects the tax consequences that would follow from the manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. Deferred tax relating to items recognized outside profit or loss is recognized outside profit or loss. Deferred tax items are recognized in correlation to the underlying transaction either in other comprehensive income or directly in equity. Deferred tax assets are reassessed at each reporting date and are recognized accordingly.

Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current income tax assets against current income tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

According to the temporary exception in the International Tax Reform – Pillar Two Model Rules (Amendments to IAS 12), information about deferred tax assets and liabilities related to Pillar Two income tax will neither be recognized nor be disclosed.

Interim period income tax expense is accrued using the tax rate that would be applicable to expected total annual earnings, that is, the estimated average annual effective income tax rate applied to the pre-tax income of the interim period. The estimated average annual effective income tax rate only includes current income tax. The recognition and measurement of deferred tax follows annual financial reporting requirements in accordance with IAS 12. The Group recognizes the effect of change in tax rate for deferred taxes in full if the new tax rate is enacted by the end of the interim reporting period, by charging to profit or loss, other comprehensive income, or directly to equity.

(23) Business combinations and goodwill

Business combinations are accounted for using the acquisition method. The consideration transferred, the identifiable assets acquired and liabilities assumed are measured at acquisition date fair value. For each business combination, the acquirer measures any non-controlling interest in the acquiree either at fair value or at the non-controlling interest’s proportionate share of the acquiree’s identifiable net assets. Acquisition-related costs are accounted for as expenses in the periods in which the costs are incurred and are classified under administrative expenses.

When the Group acquires a business, it assesses the assets and liabilities assumed for appropriate classification and designation in accordance with the contractual terms, economic circumstances and pertinent conditions as at the acquisition date. This includes the separation of embedded derivatives in host contracts by the acquiree.

If the business combination is achieved in stages, the acquisition date fair value of the acquirer’s previously held equity interest in the acquiree is remeasured to fair value at the acquisition date through profit or loss.

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Any contingent consideration to be transferred by the acquirer will be recognized at the acquisition-date fair value. Subsequent changes to the fair value of the contingent consideration which is deemed to be an asset or liability, will be recognized in accordance with IFRS 9 Financial Instruments either in profit or loss or as a change to other comprehensive income. However, if the contingent consideration is classified as equity, it should not be remeasured until it is finally settled within equity.

Goodwill is initially measured as the amount of the excess of the aggregate of the consideration transferred and the non-controlling interest over the net fair value of the identifiable assets acquired and the liabilities assumed. If this aggregate is lower than the fair value of the net assets acquired, the difference is recognized in profit or loss.

After initial recognition, goodwill is measured at cost less any accumulated impairment losses. Goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Group’s cash-generating units that are expected to benefit from the combination, irrespective of whether other assets or liabilities of the acquiree are assigned to those units. Each unit or group of units to which the goodwill is so allocated represents the lowest level within the Group at which the goodwill is monitored for internal management purpose and is not larger than an operating segment before aggregation.

Where goodwill forms part of a cash-generating unit and part of the operation within that unit is disposed of, the goodwill associated with the operation disposed of is included in the carrying amount of the operation. Goodwill disposed of in this circumstance is measured based on the relative recoverable amounts of the operation disposed of and the portion of the cash-generating unit retained.

5. Significant accounting judgments, estimates and assumptions

The preparation of the Group’s consolidated financial statements require management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities, at the end of the reporting period. However, uncertainty about these assumption and estimate could result in outcomes that require a material adjustment to the carrying amount of the asset or liability affected in future periods.

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(1) Judgement

In the process of applying the Group’s accounting policies, management has made the following judgements, which have the most significant effect on the amounts recognized in the consolidated financial statements:

De facto control without a majority of the voting rights in investee

The Group does not have more than 50% of the voting rights and is the main shareholder in certain investees. After taking into consideration factors such as absolute size of the Group’s holding, relative size of the other shareholdings, how widely spread the remaining shareholders are, contractual arrangements between shareholders, potential voting rights, etc., the Group reached the conclusion that it has material influence but does not have de facto control over these investees. Please refer to Note 6 (7) for further details.

(2) Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below:

(a) Fair value of financial instruments

Where the fair value of financial assets and financial liabilities recorded in the balance sheet cannot be derived from active markets, they are determined using valuation techniques including the income approach (for example the discounted cash flow model) or market approach. Changes in assumptions about these factors could affect the reported fair value of the financial instruments. Please refer to Note 12 for more details.

(b) Pension benefits

The cost of post-employment benefit and the present value of the pension obligation under defined benefit pension plans are determined using actuarial valuations. An actuarial valuation involves making various assumptions. These include the determination of the discount rate, future salary increases, mortality rates and future pension increases.

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(c) Income tax

Uncertainties exist with respect to the interpretation of complex tax regulations and the amount and timing of future taxable income. Given the wide range of international business relationships and the long-term nature and complexity of existing contractual agreements, differences arising between the actual results and the assumptions made, or future changes to such assumptions, could necessitate future adjustments to tax income and expense already recorded. The Group establishes provisions, based on reasonable estimates, for possible consequences of audits by the tax authorities of the respective counties in which it operates. The amount of such provisions is based on various factors, such as experience of previous tax audits and differing interpretations of tax regulations by the taxable entity and the responsible tax authority. Such differences of interpretation may arise on a wide variety of issues depending on the conditions prevailing in the respective Group company's domicile.

Deferred tax assets are recognized for all carryforward of unused tax losses, tax credits and deductible temporary differences to the extent that it is probable that future taxable profit will be available or there are sufficient taxable temporary differences against which the unused tax losses, unused tax credits or deductible temporary differences can be utilized. The amount of deferred tax assets determined to be recognized is based upon the likely timing and the level of future taxable profits and taxable temporary differences together with future tax planning strategies.

(d) Trade receivables – estimation of impairment loss

The Group estimates the impairment loss of trade receivables at an amount equal to lifetime expected credit losses. The credit loss is the present value of the difference between the contractual cash flows that are due under the contract (carrying amount) and the cash flows that expects to receive (evaluate forward looking information). However, as the impact from the discounting of short-term receivables is not material, the credit loss is measured by the undiscounted cash flows. Where the actual future cash flows are lower than expected, a material impairment loss may arise. Please refer to Note 6 for more details.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(e) Inventories

Estimates of net realizable value of inventories take into consideration that inventories may be damaged, become wholly or partially obsolete, or their selling prices have declined. The estimates are based on the most reliable evidence available at the time the estimates are made. Please refer to Note 6 for more details.

6. Contents of significant accounts

(1) Cash and cash equivalents

Cash and cash equivalents
Cash on hand Bank deposits Total		As of
	30 June 2024 $5,649 5,838,054 $5,843,703	31 December 2023 $5,760 5,761,314 $5,767,074	30 June 2023
			$6,302 6,847,787
			$6,854,089

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

Financial assets at fair value through profit	or loss
Financial assets mandatorily at fair value through profit or loss: Stocks Corporate bonds Forward exchange contracts Total Current Non-current Total		As of
	30 June 2024 $367,155 58,608 156 $425,919 $425,919 - $425,919	31 December 2023 $224,138 73,430 59 $297,627 $297,627 - $297,627	30 June 2023
			$217,450 73,144 -
			$290,594
			$290,594 -
			$290,594

Financial assets at fair value through profit or loss were not pledged.

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(3) Notes receivables

(3) Notes receivables
Notes receivables arising from operating activities Notes receivables arising from non-operating activities Subtotal (total carrying amount) Less: loss allowance Total		As of
	30 June 2024 $1,696,664 - 1,696,664 - $1,696,664	31 December 2023 $1,739,602 - 1,739,602 - $1,739,602	30 June 2023
			$1,833,571 -
			1,833,571 -
			$1,833,571

Part of the Group’s notes receivable have been signed into with recourse contracts with financial institutions. Please refer to Note 12.

Notes receivables were not pledged.

The Group follows the requirement of IFRS 9 to assess the impairment. Please refer to Note 6(18) for more details on loss allowance and Note 12 for details on credit risk management.

(4) Accounts receivables

Accounts receivables
Accounts receivables Less: loss allowance Subtotal Accounts receivables from related parties Total		As of
	30 June 2024 $7,670,290 (861,987) 6,808,303 - $6,808,303	31 December 2023 $6,656,040 (827,500) 5,828,540 - $5,828,540	30 June 2023
			$7,407,074 (808,162)
			6,598,912 -
			$6,598,912

Accounts receivables were not pledged.

Accounts receivables are generally on 60-120 day terms, while the term for wind energy sales is receiving three-month term acceptance after a period of three-month from delivery due to industry characteristics. The total carrying amount are NT$7,670,290 thousand, NT$6,656,040 thousand and NT$7,407,074 thousand as of 30 June 2024, 31 December 2023 and 30 June 2023. Please refer to Note 6(18) for more details on loss allowance of accounts receivables for six-month periods ended 30 June 2024 and 2023. (Please refer to Note 12 for more details on credit risk management.)

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(5) Inventories

nventories
Raw materials Work in progress Finished goods Merchandise Total		As of
	30 June 2024	31 December 2023 $3,483,982 505,006 5,500,197 836,943 $10,326,128	30 June 2023
	$3,305,927 513,243 2,954,333 909,751		$3,483,666 740,039 5,697,686 1,216,197
	$7,683,254		$11,137,588

The cost of inventories recognized in cost of goods sold for the three-month periods ended 30 June 2024 and 2023 were NT$6,143,959 thousand and NT$6,342,118 thousand; for the six-month periods ended 30 June 2024 and 2023 were NT$12,027,213 thousand and NT$12,576,967 thousand, respectively. The price reduction of inventories related to cost of goods sold for the three-month periods ended 30 June 2024 and 2023 were NT$27,850 thousand and NT$48,175 thousand; for the six-month periods ended 30 June 2024 and 2023 were NT$78,886 thousand and NT$65,948 thousand.

Inventories were not pledged.

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

	As of
30 June 2024	31 December 2023	30 June 2023

$396,930	$435,533	$443,776

On 24 February 2023, the Group invested NT$75,000 thousand in SINTOP Energy I Corp. which were reported under equity instrument investments measured at fair value through other comprehensive income during the period.

On 27 June 2023, the paid-in capital returned from capital reduction of Top Taiwan Venture Capital Co., Ltd. amounted to NT$7,800 thousand.

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

On 27 June 2023, the paid-in capital returned from capital reduction of Top Taiwan VII Venture Capital Co., Ltd. amounted to NT$3,551 thousand.

Financial assets at fair value through other comprehensive income were not pledged.

The Group’s dividend income related to equity instrument investments measured at fair value through other comprehensive income for the threemonth and six-month periods ended 30 June 2024 and 2023 are as follows:

3-month periods ended 30 June	3-month periods ended 30 June	6-month periods ended 30 June 2024 2023 $81,639 $33,945 - - $81,639 $33,945	6-month periods ended 30 June 2024 2023 $81,639 $33,945 - - $81,639 $33,945
2024	2023
$81,639 -	$33,945 -	$81,639 - $81,639
$81,639	$33,945		$33,945

(7) Investments accounted for using the equity method

The following table lists the investments accounted for using the equity method of the Group:

	As of
30 June 2024 Carrying amount Percentage of ownership (%) $813,041 19.76% - 26.64% $813,041	31 December 2023 Carrying amount Percentage of ownership (%) $850,957 19.92% - 26.64% $850,957	30 June 2023
Carrying amount $813,041 - $813,041	Carrying amount $850,957 - $850,957	Carrying amount $807,194 - $807,194	Percentage of ownership (%)
			19.92% 26.64%

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Because Sardines Wisdom Technology Co., Ltd. (Sardines Wisdom) suffered losses and the Group didn’t intend to support Sardines Wisdom, the Group reduced the book value of the investment in Sardines Wisdom to zero through recognizing loss.

For the six-month period ended 30 June 2024, the Group disposed of 0.16% interest in Argosy Research Inc.. The cash consideration amounted to NT$25,104 thousand and the Group recognized gain on disposal of investment in the amount of NT$18,056 thousand. The cumulative gain of disposal amounting to NT$57 thousand was transferred from other components of equity to retained earnings and paid-in capital and exchange differences on translation of foreign operations in the amount of NT$47 thousand and NT$(2) thousand was transferred to the profit and loss according to the disposal ratio.

The Group has 19.76% of the voting rights in Argosy Research Inc. Although the holding of Argosy Research Inc. is less than 20%, the Group as one of the directors, is presumed to have a significant influence on the invested companies. Since the decision-making of Argosy Research Inc. must be resolved by the majority votes of the shareholders’ meeting, under such circumstances, the Group does not have the ability to unilaterally determine related activities of Argosy Research Inc. Therefore, it has material influence but does not have the fact control over Argosy Research Inc.

Fair value of the investment in the associate when there is a quoted market price for the investment: Argosy Research Inc. is a listed entity on the Taipei Exchange (TPEx). The fair value of the investment in Argosy Research Inc. was NT$3,062,245 thousand, NT$3,077,696 thousand and NT$2,315,002 thousand as of 30 June 2024, 31 December 2023 and 30 June 2023, respectively.

The Group’s investments in Argosy Research Inc. and Sardines Wisdom Technology Co., Ltd. are not individually material. The aggregate financial information of the Group’s share of its associates is as follows:

3-month periods ended 30 June 2024 2023 $43,589 $31,397 11,775 13,808 $55,364 $45,205	6-month periods ended 30 June	6-month periods ended 30 June
2024 $43,589 11,775 $55,364	2024 $83,342 (221) $83,121	2023
		$50,614 71,700
		$122,314

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

The associates had no contingent liabilities capital commitments and pledged as of 30 June 2024, 31 December 2023 and 30 June 2023.

The carrying amount of investments accounted for using the equity method as of 30 June 2024 and 2023 and the share of the profit or loss and other comprehensive income of these associates and joint ventures accounted for using the equity method amounts for the three-month and six-month periods ended 30 June 2024 and 2023 were based on unreviewed financial statements of the investees.

(8) Property, plant and equipment

Cost:	Land $358,911 - - (1,628) - $357,283 $239,845 - (4,287) 475 - $236,033 $ - - - - $ -	Buildings $2,453,078 4,405 (10,038) 46,138 6,827 $2,500,410 $2,383,189 8,615 (18,732) (28,819) 60,271 $2,404,524 $1,043,777 90,913 (5,679) 22,198 $1,151,209	Machinery and equipment $1,978,542 48,715 (40,208) 53,392 754 $2,041,195 $1,730,208 94,479 (24,582) (26,615) 9,146 $1,782,636 $1,012,050 148,067 (20,017) 26,895 $1,166,995	Office equipment $241,752 7,813 (25,499) 4,876 66 $229,008 $228,046 10,363 (6,311) (244) 432 $232,286 $177,019 13,382 (24,900) 3,450 $168,951	Transportation equipment $31,256 2,422 (13) 985 - $34,650 $36,556 1,806 (2,423) (740) - $35,199 $21,782 1,781 (6) 706 $24,263	Other equipment $637,889 54,571 (8,958) 17,596 - $701,098 $595,688 26,929 (10,968) (15,799) - $595,850 $376,646 42,308 (6,222) 10,992 $423,724	Leasehold improvements $117,404 97 (554) 321 (3,208) $114,060 $124,071 - (13,960) 65 - $110,176 $28,127 4,373 (554) 276 $32,222	Construction in progress and equipment pending examination $50,414 25,322 (6,561) 1,372 (6,704) $63,843 $60,249 45,530 - (2,813) (59,250) $43,716 $ - - - - $ -	Total
									$5,869,246 143,345 (91,831) 123,052 (2,265)
As of 1 January 2024 Additions Disposals Exchange differences Other changes As of 30 June 2024 As of 1 January 2023 Additions Disposals Exchange differences Other changes As of 30 June 2023 Depreciation and impairment:
									$6,041,547
									$5,397,852 187,722 (81,263) (74,490) 10,599
									$5,440,420
									$2,659,401 300,824 (57,378) 64,517
As of 1 January 2024 Depreciation Disposals Exchange differences As of 30 June 2024
									$2,967,364

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

As of 1 January 2023 Depreciation Disposals Exchange differences As of 30 June 2023 Net carrying amount as of:	Land $ - - - - $ - $357,283 $358,911 $236,033	Buildings $941,266 58,293 (6,991) (14,799) $977,769 $1,349,201 $1,409,301 $1,426,755	Machinery and equipment $888,608 84,130 (19,695) (12,414) $940,629 $874,200 $966,492 $842,007	Office equipment $158,448 14,328 (5,792) (264) $166,720 $60,057 $64,733 $65,566	Transportation equipment $25,665 2,397 (2,181) (590) $25,291 $10,387 $9,474 $9,908	Other equipment $313,972 39,980 (7,621) (9,452) $336,879 $277,374 $261,243 $258,971	Leasehold improvements $27,153 5,085 (8,057) 66 $24,247 $81,838 $89,277 $85,929	Construction in progress and equipment pending examination $ - - - - $ - $63,843 $50,414 $43,716	Total
									$2,355,112 204,213 (50,337) (37,453)
									$2,471,535
									$3,074,183
30 June 2024 31 December 2023 30 June 2023
									$3,209,845
									$2,968,885

Property, plant and equipment was not pledged.

There is no capitalization of interest due to purchase of property, plant and equipment.

Components of building that have different useful lives are the main building structure and air conditioning, which are depreciated over 50 years and 25 years, respectively.

(9) Other non-current assets

Other non-current assets
Prepayment for equipment Long-term deferred charges Refundable deposits Other assets Total		As of
	30 June 2024	31 December 2023	30 June 2023 $274,722 154,334 89,819 44,212 $563,087
	$172,690 139,103 101,632 41,383	$87,478 142,223 109,230 44,024
	$454,808	$382,955

Other non-current assets were not pledged.

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(10) Short-term loans

	As of	As of
30 June 2024 $1,389,742 6-month	31 December 2023		30 June 2023
			$3,063,490
	periods
2024		2023
		1.58%~6.18%

The Group’s unused short-term lines of credits amounted to NT$9,633,566 thousand, NT$8,244,250 thousand and NT$8,062,169 thousand as of 30 June 2024, 31 December 2023 and 30 June 2023, respectively.

(11) Financial liabilities at fair value through profit or loss

	As of
30 June 2024 $579 - $579 $579 - $579	31 December 2023 $1,488 - $1,488 $1,488 - $1,488	30 June 2023
		$91 1,152
		$1,243
		$1,152 91
		$1,243

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(12) Other payables

	As of
30 June 2024 $2,325,361 633,911 243,429 106,469 32,713 19,882 611,603 $3,973,368	31 December 2023	30 June 2023
	$20,419 648,248 227,299 97,511 45,565 27,901 703,142	$2,067,619 603,960 247,061 58,944 37,126 27,414 752,115
	$1,770,085	$3,794,239

(13) Bonds payable

	As of
30 June 2024 $826,700 (20,558) 806,142 (806,142) $- $579 $75,155	31 December 2023 $826,700 (27,587) 799,113 (799,113) $- $1,488 $75,155	30 June 2023
		$948,800 (40,222)
		908,578 (35,596)
		$872,982
		$91
		$86,959

Issuance of convertible bonds:

A. On 12 December 2022, the Company issued the eighth domestic zero coupon unsecured convertible bonds. The terms of the convertible bonds were evaluated to include a liability component, embedded derivatives (a call option and a put option) and an equity component (an option for conversion into issuer’s ordinary shares). The terms of the bonds are as follows:

Issue amount: NT$1,000,000 thousand

Period: 12 December 2022 ~ 12 December 2025

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Redemption clauses:

a. The Company may redeem the bonds, in whole or in part, after 3 months of the issuance (13 March 2023) and prior to 40 days before the maturity date (2 November 2025), at the principal amount of the bonds with an interest calculated at the rate of 0% per annum (early redemption conversion price) if the closing price of the Company’s ordinary shares on the Taiwan Stock Exchange (TWSE) for a period of 30 consecutive trading days, is at least 130% of the conversion price.
b. The Company may redeem the bonds, in whole or in part, after 3 months of the issuance (13 March 2023) and prior to 40 days before the maturity date (2 November 2025), at the early redemption conversion price if at least 90% in principal amount of the bonds has already been exchanged, redeemed, purchased or cancelled.
c. The Company may redeem the bonds in cash, within 5 trading days after the base date of withdrawing the bonds as stated on the “Withdrawal of Convertible Bonds Notice”, at the par value if the bondholders do not reply to the share affair agency in writing before the base date.

Reversal clauses:

a. The bondholders have the right to require the Company to redeem all or any portion of the bonds, 40 days prior to 2-year anniversary (12 December 2024) of the issuance, at the principal amount of the bonds with an interest calculated at the rate of 0.5% per annum.

Terms of Exchange:

a. Underlying Securities: Common shares of the Company

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

b. Exchange Period: The bonds are exchangeable at any time on or after 13 March 2023 and prior to 12 December 2025 into common shares of the Company.
c. Exchange Price and Adjustment: The exchange price was originally NT$286.5 per share. The exchange price will be subject to adjustments upon the occurrence of certain events set out in the indenture.

In accordance with IFRS 9, said financial instrument is classified as an embedded derivative so the exercise price of the embedded put option is allocated to the liability component and equity component. The equity component is assigned the residual amount after deducting from the fair value of the instrument as a whole the amount separately determined for the liability component. The difference between the equity component and the book value was recognized in profit or loss. The difference between the liability component and the book value was recognized in “Share premium-warrants”.

The financial liabilities of convertible bonds are measured at amortized cost, fair value through profit or loss amounted to NT$579 thousand, NT$1,488 thousand and NT$91 thousand as of 30 June 2024, 31 December 2023 and 30 June 2023, respectively.

The convertible bonds that have already been converted were NT$173,300 thousand, NT$173,300 thousand and NT$87,000 thousand as of 30 June 2024, 31 December 2023 and 30 June 2023, respectively.

B. On 15 December 2020, the Company issued the seventh domestic zero coupon unsecured convertible bonds. The terms of the convertible bonds were evaluated to include a liability component, embedded derivatives (a call option and a put option) and an equity component (an option for conversion into issuer’s ordinary shares). The terms of the bonds are as follows:

Issue amount: NT$1,300,000 thousand

Period: 15 December 2020 ~ 15 December 2023

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Redemption clauses:

a. The Company may redeem the bonds, in whole or in part, after 3 months of the issuance (16 March 2021) and prior to 40 days before the maturity date (5 November 2023), at the principal amount of the bonds with an interest calculated at the rate of 0% per annum (early redemption conversion price) if the closing price of the Company’s ordinary shares on the Taiwan Stock Exchange (TWSE) for a period of 30 consecutive trading days, is at least 130% of the conversion price.
b. The Company may redeem the bonds, in whole or in part, after 3 months of the issuance (16 March 2021) and prior to 40 days before the maturity date (5 November 2023), at the early redemption conversion price if at least 90% in principal amount of the bonds has already been exchanged, redeemed, purchased or cancelled.
c. The Company may redeem the bonds in cash, within 5 trading days after the base date of withdrawing the bonds as stated on the “Withdrawal of Convertible Bonds Notice”, at the par value if the bondholders do not reply to the share affair agency in writing before the base date.

Reversal clauses:

a. The bondholders have the right to require the Company to redeem all or any portion of the bonds, 40 days prior to 2-year anniversary (15 December 2022) of the issuance, at the principal amount of the bonds with an interest calculated at the rate of 0.5% per annum.

Terms of Exchange:

a. Underlying Securities: Common shares of the Company

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

b. Exchange Period: The bonds are exchangeable at any time on or after 16 March 2021 and prior to 15 December 2023 into common shares of the Company.
c. Exchange Price and Adjustment: The exchange price was originally NT$203 per share. The exchange price will be subject to adjustments upon the occurrence of certain events set out in the indenture.

The financial assets of convertible bonds are measured at amortized cost, fair value through profit or loss all amounted to NT$0 thousand as of 30 June 2024, 31 December 2023 and 30 June 2023, respectively.

The convertible bonds that have already been converted were NT$1,300,000 thousand, NT$1,300,000 thousand and NT$1,264,200 thousand as of 30 June 2024, 31 December 2023 and 30 June 2023, respectively.

(14) Long-term deferred revenue

Long-term deferred revenue
Beginning balance Amortization Exchange differences Ending balance		As of
	30 June 2024 $13,217 (183) 402 $13,436	31 December 2023 $13,838 (364) (257) $13,217	30 June 2023
			$13,838 (183) (402)
			$13,253

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Deferred revenue - related to assets		As of
	30 June 2024 $13,436	31 December 2023 $13,217	30 June 2023
			$13,253

Government grants have been received for the purchase of certain items of property, plant and equipment. There are no unfulfilled conditions or contingencies attached to these grants.

(15) Post-employment benefits

Defined contribution plan

Expenses under the defined contribution plan for the three-month and sixmonth periods ended 30 June 2024 and 2023 were NT$13,167 thousand, NT$12,765 thousand, NT$26,392 thousand and NT$26,113 thousand, respectively.

Defined benefits plan

Expenses under the defined benefits plan for the three-month and six-month periods ended 30 June 2024 and 2023 were NT$243 thousand, NT$299 thousand, NT$487 thousand and NT$597 thousand.

(16) Equities
(a) Common stock

The Company’s authorized capital was NT$4,500,000 thousand as of 30 June 2024, 31 December 2023 and 30 June 2023. The issued capital was NT$2,400,332 thousand, NT$2,400,332 thousand and NT$2,390,560 thousand in a total of 240,033 thousand shares, 240,033 thousand shares and 239,056 thousand shares, respectively. Each share has one voting right and a right to receive dividends.

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

As of 1 January 2023, the accumulated book value of certificate of entitlement to new shares from convertible bond that had completed the registration process amounted to NT$19,200 thousand in a total of 1,920 thousand shares in the first quarter of 2023.

The investors requested to convert the Company’s convertible bonds into common stocks in the amount of NT$10,421 thousand in a total of 1,042 thousand shares from 1 January 2023 to 30 June 2023, and 552 thousand shares had completed the registration process as of 30 June 2024. As the registration process has not been completed, the accumulated book value of certificates of entitiement to new shares from convertible bond amounted to NT$4,901 thousand in a total of 490 thousand shares as of 30 June 2023.

The registration process for the certificate of entitlement to new shares from convertible bond was completed as of 31 December 2023. As of 30 June 2024, the accumulated book value of certificate of entitlement to new shares from convertible bond amounted to NT$0 thousand.

(b) Capital surplus

(b) Capital surplus
Additional paid-in capital Treasury share transactions Share of changes in net assets of associates and joint ventures accounted for using the equity method Difference between consideration received and carrying amount of interests in subsidiaries acquired or disposed Increase through changes in ownership interests in subsidiaries Premium from merge Share options Total		As of
	30 June 2024 $2,780,077 5,749 135,067 52,100 15,882 705 75,155 $3,064,735	31 December 2023 $2,780,077 5,749 135,114 52,100 15,882 705 75,155 $3,064,782	30 June 2023
			$2,654,610 5,749 135,093 27,385 32,568 705 86,959
			$2,943,069

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

According to the Company Act, the capital reserve shall not be used except for making good the deficit of the company. When a company incurs no loss, it may distribute the capital reserves related to the income derived from the issuance of new shares at a premium or income from endowments received by the company. The distribution could be made in cash or in the form of dividend shares to its shareholders in proportion to the number of shares being held by each of them.

According to the Company’s Articles of Incorporation, current year’s earnings, if any, shall be distributed in the following order:

a. Payment of all taxes and dues
b. Offset prior years’ operation losses
c. Set aside 10% as legal reserve
d. Set aside or reverse special reserve in accordance with law and regulations
e. The distribution of the remaining portion, if any, will be recommended by the Board of Directors and resolved in the shareholders’ meeting.

As the Company is undergoing a growth stage, the policy of dividend distribution should reflect its long-term financial planning. The Board of Directors shall make the distribution proposal annually and present it at the Shareholder’s meeting every year. The distribution of shareholders dividend shall be allocated cash dividends to be distributed may not be less than 10% of total dividends to be distributed.

According to the Company Act, the Company needs to set aside amount to legal reserve unless where such legal reserve amounts to the total paidin capital. The legal reserve can be used to make good the deficit of the Company. When the Company incurs no loss, it may distribute the portion of legal serve which exceeds 25% of the paid-in capital by issuing new shares or by cash in proportion to the number of shares being held by each of the shareholders.

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

When the Company distributing distributable earnings, it shall set aside to special reserve, an amount equal to “other net deductions from shareholders” equity for the current fiscal year, provided that if the company has already set aside special reserve according to the requirements for the adoption of IFRS, it shall set aside supplemental special reserve based on the difference between the amount already set aside and other net deductions from shareholders’ equity. For any subsequent reversal of other net deductions from shareholders’ equity, the amount reversed may be distributed from the special reserve.

On 31 March 2021, the FSC issued Order No. Financial-SupervisorySecurities-Corporate-1090150022, which sets out the following provisions for compliance:

On a public company's first-time adoption of the IFRS, for any unrealized revaluation gains and cumulative translation adjustments (gains) recorded to shareholders’ equity that the company elects to transfer to retained earnings by application of the exemption under IFRS 1, the company shall set aside special reserve. For any subsequent use, disposal or reclassification of related assets, the Company can reverse the special reserve by the proportion of the special reserve first appropriated and distribute it.

The Company did not reverse any special reserve as a result of use, disposal or reclassification of related assets during the six-month periods ended 30 June 2024 and 2023.

Details of the 2023 and 2022 earnings distribution and dividends per share as resolved by the shareholders’ meeting on 30 May 2024 and 30 May 2023, respectively, are as follows:

Cash dividends Legal reserve Special reserve	Appropriation of earnings 2023 2022 $2,304,318 $2,030,999 328,281 288,562 130,343 (111,279)	Dividendper	share(NT$)
	2023 $2,304,318 328,281 130,343	2023 $9.6	2022
			$8.5

Please refer to Note 6(20) for details on employees’ compensation and remuneration to directors.

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(d) Non-controlling interests

Non-controlling interests
Beginning balance Gains (losses) attributable to non-controlling interests Other comprehensive income (loss), attributable to non-controlling interests, net of tax: Exchange differences resulting from translating the financial statements of foreign operations Unrealized gains or losses measured at fair value through other comprehensive income Acquisition of additional interest in a subsidiary Dividend distribution of the subsidiary Changes in ownership equity of subsidiary Ending balance	6-monthperiods ended 30 June
	2024 $175,957 1,612 4,458 - - - - $182,027	2023
		$839,565 (170,995) 11,892 (164) (167,715) (16,419) (243,755) $252,409

(17) Operating revenue

(17) Operating revenue
Revenue from contracts with customers Sale of goods Construction revenues Other operating revenue Total	3-month periods ended 30 June 2024 2023 $8,214,964 $8,424,740 36,824 155,093 53,556 143,495		6-month periods ended 30 June 2024 2023 $16,014,429 $16,756,083 124,572 176,415 202,229 256,503
	2024		2024 $16,014,429 124,572 202,229
	$8,214,964 36,824 53,556
	$8,305,344	$8,723,328	$16,341,230	$17,189,001

Analysis of revenue from contracts with customers during the three-month and six-month periods ended 30 June 2024 and 2023 are as follows:

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(a) Disaggregation of revenue

For the three-month period ended 30 June 2024

Sale of goods Construction revenues Other operating revenues Total Timing of revenue recognition: At a point in time Over time Total	Green Energy $2,313,026 36,824 13,168 $2,363,018 $2,326,194 36,824 $2,363,018	Industrial Application $2,568,085 - 18,160 $2,586,245 $2,586,245 - $2,586,245	Medical Health $671,433 - 4,252 $675,685 $675,685 - $675,685	Automotive & Aviation $1,021,638 - 5,551 $1,027,189 $1,027,189 - $1,027,189	Communication $1,640,782 - 12,425 $1,653,207 $1,653,207 - $1,653,207	Total
						$8,214,964 36,824 53,556
						$8,305,344
						$8,268,520 36,824
						$8,305,344

For the three-month period ended 30 June 2023

Sale of goods Construction revenues Other operating revenues Total Timing of revenue recognition: At a point in time Over time Total	Green Energy $2,522,948 155,093 43,449 $2,721,490 $2,566,397 155,093 $2,721,490	Industrial Application $2,436,185 - 41,219 $2,477,404 $2,477,404 - $2,477,404	Medical Health $746,748 - 12,705 $759,453 $759,453 - $759,453	Automotive & Aviation $1,177,094 - 20,203 $1,197,297 $1,197,297 - $1,197,297	Communication $1,541,765 - 25,919 $1,567,684 $1,567,684 - $1,567,684	Total
						$8,424,740 155,093 143,495
						$8,723,328
						$8,568,235 155,093
						$8,723,328

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

For the six-month period ended 30 June 2024

	Green	Industrial	Medical	Automotive
	Energy	Application	Health	& Aviation	Communication	Total
Sale of goods	$4,806,122	$4,785,952	$1,328,321	$2,164,068	$2,929,966	$16,014,429
Construction revenues	124,572	-	-	-	-	124,572
Other operating revenues	60,691	60,437	16,774	27,328	36,999	202,229
Total	$4,991,385	$4,846,389	$1,345,095	$2,191,396	$2,966,965	$16,341,230
Timing of revenue
recognition:
At a point in time	$4,866,813	$4,846,389	$1,345,095	$2,191,396	$2,966,965	$16,216,658
Over time	124,572	-	-	-	-	124,572
Total	$4,991,385	$4,846,389	$1,345,095	$2,191,396	$2,966,965	$16,341,230

For the six-month period ended 30 June 2023

Sale of goods Construction revenues Other operating revenues Total Timing of revenue recognition: At a point in time Over time Total	Green Energy $5,291,418 176,415 81,001 $5,548,834 $5,372,419 176,415 $5,548,834	Industrial Application $4,687,556 - 71,757 $4,759,313 $4,759,313 - $4,759,313	Medical Health $1,476,992 - 22,610 $1,499,602 $1,499,602 - $1,499,602	Automotive & Aviation $2,429,550 - 37,192 $2,466,742 $2,466,742 - $2,466,742	Communication $2,870,567 - 43,943 $2,914,510 $2,914,510 - $2,914,510	Total
						$16,756,083 176,415 256,503
						$17,189,001
						$17,012,586 176,415
						$17,189,001

(b) Contract balances

A. Contract assets – current

Construction revenues		As of	As of
	30 June 2024	31 December 2023	30 June 2023	1 January 2023
	$294,061	$332,941	$-	$-

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

For the six-month period ended 30 June 2024, contract assets decreased as the contract consideration had been unconditionally charged and transferred to accounts receivables.

B. Contract liabilities – current

	As of	As of
30 June 2024	31 December 2023	30 June 2023	1 January 2023
$2,319,180 355,174	$4,872,653 355,174	$5,150,933 169,601	$4,725,055 255,641
$2,674,354	$5,227,827	$5,320,534	$4,980,696

During the six-month period ended 30 June 2024, contract liabilities decreased as performance obligations were partially satisfied. During the six-month period ended 30 June 2023, contract liabilities increased as the consideration received from customers did not satisfy its performance obligations.

(c) Transaction price allocated to unsatisfied performance obligations

As of 30 June 2024, the Group's total transaction price apportioned to unsatisfied performance obligations is NT$2,959,638 thousand. The Group will gradually recognize the revenue with the completion of these projects, which are expected to be completed in the next 3 years.

(d) Assets recognized from costs to fulfil a contract

None.

(18) Expected credit losses

	3-month periods ended	3-month periods ended	6-month periods ended	6-month periods ended
	30	June	30	June
	2024	2023	2024	2023
Operating expenses`－`Expected
credit losses
Trade receivables	$286	$719,996	$34,407	$732,046

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Please refer to Note 12 for more details on credit risk.

The Group measures the loss allowance of its contract assets and trade receivables (including note receivables and accounts receivables) at an amount equal to lifetime expected credit losses. The assessment of the Group’s loss allowance as of 30 June 2024, 31 December 2023 and 30 June 2023 are as follows:

(a) The historical credit loss experience for contract assets shows that different customer segments do not have significantly different loss patterns. Therefore, the loss allowance of contract assets is measured at an amount equal to lifetime expected credit losses and with no distinction between groups, details are as follows:

	As of
30 June 2024	31 December 2023	30 June 2023
$294,061 -% -	$332,941 -% -	$ - -% -
$294,061	$332,941	$-

(b) The Group considers the grouping of accounts receivables by counterparties’ credit rating, by geographical region and by industry sector and its loss allowance is measured by using a provision matrix. Additionally, the operational status and debt repayment capacity of clients are taken into account, employing individual assessments to ascertain the necessity of recognizing additional expected credit losses, details are as follows:

30 June 2024

Group 1


Group 1 Gross carrying amount Loss ratio Lifetime expected credit losses Carrying amount	Not yet due			Overdue			Individual	Total
		<=30 days	31-60 days	61-90 days	91-120 days	>=121 days
	$ - -%	$ - -%	$ - -%	$ - -%	$ - -%	$826,334 100%	$ - -	$826,334
	-	-	-	-	-	(826,334)	-	(826,334)
	$ -	$ -	$ -	$ -	$ -	$ -	$ -	$ -

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Not yet due (Note)			Overdue			Individual	Total
	<=30 days	31-60 days	61-90 days	91-120 days	>=121days
$8,118,464 -%	$160,663 -%	$81,041 -%	$60,568 -%	$67,921 -%	$17,476 5%-100%	$34,487 -	$8,540,620
-	-	-	-	-	(1,166)	(34,487)	(35,653)
$8,118,464	$160,663	$81,041	$60,568	$67,921	$16,310	$-	$8,504,967

31 December 2023

Not yet due			Overdue			Individual	Total
	<=30 days	31-60 days	61-90 days	91-120 days	>=121 days
$ - -%	$ - -%	$ - -%	$ - -%	$190 100%	$826,144 100%	$ - -	$826,334
-	-	-	-	(190)	(826,144)	-	(826,334)
$ -	$ -	$ -	$ -	$ -	$ -	$ -	$ -
Not yet due (Note)			Overdue			Individual	Total
	<=30 days	31-60 days	61-90 days	91-120 days	>=121 days
$7,031,222 -%	$395,629 -%	$100,384 -%	$11,734 -%	$12,155 -%	$18,184 5%-100%	$ - -	$7,569,308
-	-	-	-	-	(1,166)	-	(1,166)
$7,031,222	$395,629	$100,384	$11,734	$12,155	$17,018	$ -	$7,568,142

30 June 2023

Group 1


Group 1 Gross carrying amount Loss ratio Lifetime expected credit losses Carrying amount	Not yet due			Overdue			Individual	Total
		<=30 days	31-60 days	61-90 days	91-120 days	>=121 days
	$26,696 100%	$33,993 100%	$118,524 100%	$132,043 100%	$123,006 100%	$372,734 100%	$ - -	$806,996
	(26,696)	(33,993)	(118,524)	(132,043)	(123,006)	(372,734)	-	(806,996)
	$ -	$ -	$ -	$ -	$ -	$ -	$ -	$ -

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Not yet due (Note)			Overdue			Individual	Total
	<=30 days	31-60 days	61-90 days	91-120 days	>=121 days
$7,851,036 -%	$273,987 -%	$105,895 -%	$110,820 -%	$59,707 -%	$32,204 5%-100%	$ - -	$8,433,649
-	-	-	-	-	(1,166)	-	(1,166)
$7,851,036	$273,987	$105,895	$110,820	$59,707	$31,038	$ -	$8,432,483

Note: The Group’s note receivables are not overdue.

The movement in the provision for impairment of contract assets, note receivables and accounts receivables during the six-month periods ended 30 June 2024 and 2023 are as follows:

Balance, beginning of year Addition/(reversal) for the current period Write off Exchange differences Balance, end of period	6-monthperiods ended 30 June 2024 2023 $827,500 $76,116 34,407 732,046 (365) - 445 - $861,987 $808,162	6-monthperiods ended 30 June 2024 2023 $827,500 $76,116 34,407 732,046 (365) - 445 - $861,987 $808,162
	2024 $827,500 34,407 (365) 445 $861,987
		$76,116 732,046 - -
		$808,162

(19) Leases

The Group is a lessee

The Group leases various properties, including real estate such as land and buildings, machinery and equipment and transportation equipment. The lease terms range from 1 to 16 years.

The Group’s leases effect on the financial position, financial performance and cash flows are as follows:

(a) Amounts recognized in the balance sheet
A. Right-of-use asset

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

The carrying amount of right-of-use assets

	As of
30 June 2024 $31,689 240,563 20,947 24,244 $317,443	31 December 2023	30 June 2023
	$31,244 249,992 21,566 26,206 $329,008	$31,399 275,253 26,319 24,386
		$357,357

During the six-month periods ended 30 June 2024 and 2023, the Group’s additions to right-of-use assets amounting to NT$46,001 thousand and NT$13,478 thousand, respectively.

B. Lease liabilities

Lease liabilities
Lease liability Current Non-Current Total		As of
	30 June 2024 $85,570 189,446 $275,016	31 December 2023 $89,041 198,741 $287,782	30 June 2023
			$90,427 225,622
			$316,049

Please refer to Note 6(21)(d) for the interest on lease liabilities recognized during the three-month and six-month periods ended 30 June 2024 and 2023 and refer to Note 12 (5) liquidity risk management for the maturity analysis for lease liabilities.

(b) Amounts recognized in the statements of comprehensive income

Depreciation charge for right-of-use assets 3-month periods ended 30 June 2024 2023 Land $254 $248 Buildings 20,648 20,116 Machinery and equipment 1,258 659 Transportation equipment 3,460 3,200 Total $25,620 $24,223	6-month periods ended 30 June	6-month periods ended 30 June
	2024 $504 41,413 2,439 6,962 $51,318	2023
		$609 41,082 1,384 6,482
		$49,557

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

3-month periods ended 30 June 2024 2023 $18,122 $18,327	6-month periods ended 30 June	6-month periods ended 30 June
2024 $18,122	2024 $37,250	2023
		$33,568

(d) Cash outflow related to lessee and lease activity

During the six-month periods ended 30 June 2024 and 2023, the Group’s total cash outflows for leases amounting to NT$89,216 thousand and NT$91,313 thousand, respectively.

(20) Summary statement of employee benefits, depreciation and amortization expenses by function during the three-month and six-month periods ended 30 June 2024 and 2023:

	3-month periods ended 30 June	3-month periods ended 30 June	3-month periods ended 30 June	3-month periods ended 30 June	3-month periods ended 30 June
	2024			2023
	Operating costs	Operating expenses	Total	Operating costs	Operating expenses	Total
Employee benefits expense
Salaries	$451,534	$485,267	$936,801	$520,206	$398,257	$918,463
Labor and health insurance	62,747	70,387	133,134	69,423	62,354	131,777
Pension	4,010	9,400	13,410	3,777	9,287	13,064
Otheremployee benefits expense	32,245	25,906	58,151	36,471	26,603	63,074
Depreciation	72,603	88,995	161,598	75,457	51,550	127,007
Amortization	3,166	5,034	8,200	2,652	7,513	10,165

	6-monthperiods ended 30 June	6-monthperiods ended 30 June	6-monthperiods ended 30 June	6-monthperiods ended 30 June	6-monthperiods ended 30 June	6-monthperiods ended 30 June
	2024			2023
	Operating costs	Operating expenses	Total	Operating costs	Operating expenses	Total
Employee benefits expense
Salaries	$855,362	$965,960	$1,821,322	$1,071,588	$904,866	$1,976,454
Laborandhealth insurance	125,502	139,851	265,353	139,366	125,721	265,087
Pension	8,121	18,758	26,879	8,103	18,607	26,710
Otheremployee benefits expense	60,716	53,717	114,433	73,320	51,042	124,362
Depreciation	144,716	207,426	352,142	151,141	102,629	253,770
Amortization	6,445	16,809	23,254	6,778	14,334	21,112

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

According to the Articles of Incorporation, 1% to 15% of profit of the current year is distributable as employees’ compensation and no higher than 3% of profit of the current year is distributable as remuneration to directors. However, the company's accumulated losses shall have been covered. 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 in the form of shares or in cash; and in addition thereto a report of such distribution is submitted to the shareholders’ meeting. Information on the Board of Directors’ resolution regarding the employees’ compensation and remuneration to directors can be obtained from the “Market Observation Post System” on the website of the TWSE.

Based on the profit of the six-month period ended 30 June 2024, the Company estimated the amounts of the employees’ compensation and remuneration to directors to be 1.15% and 0.84% of profit of the current six-month period, respectively, recognized as employee benefits expense. As such, employees’ compensation and remuneration to directors for the three-month period ended 30 June 2024 amounted to NT$11,000 thousand and NT$9,000 thousand respectively. Employees’ compensation and remuneration to directors for the six-month period ended 30 June 2024 amounted to NT$26,000 thousand and NT$19,000 thousand respectively. Based on the profit of the six-month period ended 30 June 2023, the Company estimated the amounts of the employees’ compensation and remuneration to directors to be 1.05% and 0.70% of profit of the current six-month period, respectively, recognized as employee benefits expense. Employees’ compensation and remuneration to directors for the threemonth period ended 30 June 2023 amounted to NT$11,500 thousand and NT$8,000 thousand, respectively. Employees’ compensation and remuneration to directors for the six-month period ended 30 June 2023 amounted to NT$24,000 thousand and NT$16,000 thousand, respectively.

A resolution was passed at the Board of Directors meeting held on 7 March 2024 to distribute NT$40,500 thousand and NT$26,000 thousand in cash as employees’ compensation and remuneration to directors of 2023, respectively. No material differences existed between the estimated amount and the actual distribution of the employee compensation and remuneration to directors for the year ended 31 December 2023.

No material differences exist between the recognized amount and the actual distribution of the employee compensation and remuneration to directors for the year ended 31 December 2023.

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(21) Non-operating income and expenses
(a) Interest income

nterest income
Bank deposit interest	3-month periods ended 30 June 2024 2023 $34,189 $19,032	6-month periods ended 30 June
	2024 $34,189	2024 $52,366	2023
			$25,670

(b) Other income

Other income
Dividend income Other income - others Total	3-month periods ended 30 June 2024 2023 $81,639 $33,945 92,299 102,255 $173,938 $136,200	6-month periods ended 30 June
	2024 $81,639 92,299 $173,938	2024 $81,639 160,863 $242,502	2023
			$33,945 201,061
			$235,006

(c) Other gains and losses
(Losses) gains on financial asset at fair value through profit or loss (Note1) Foreign exchange gains, net Gains on disposal of investments Gains on financial liabilities at fair value through profit or loss (Note2) Losses on disposal of property, plant and equipment Loss on disposal of right-of-use assets Other expense Total	3-month periods ended 30 June 2024 2023 $(24,274) $5,781 23,802 188,288 4,700 - 1,405 48 (2,033) (630) - - (5,351) (4,511) $(1,751) $188,976	6-month periods ended 30 June
	2024 $(24,274) 23,802 4,700 1,405 (2,033) - (5,351) $(1,751)	2024 $131,380 78,155 18,056 909 (2,465) - (8,610) $217,425	2023
			$(8,173) 191,301 - 3,815 (1,891) (45) (8,316)
			$176,691

Note:

Balances were arising from financial assets mandatorily measured at fair value through profit or loss, including valuation adjustment, dividend income, interest income and exchange gains and losses etc.
Balances were arising from held for trading financial liabilities, including valuation adjustment, interest expense and exchange gains and losses etc.

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(d) Finance costs

Finance costs
Interest on loans from bank Interest on bonds payable Interest on lease liabilities Total	3-month periods ended 30 June 2024 2023 $8,466 $22,825 3,515 5,504 1,936 1,680 $13,917 $30,009	6-month periods ended 30 June
	2024 $8,466 3,515 1,936 $13,917	2024 $19,883 7,029 3,161 $30,073	2023
			$44,545 11,119 3,705
			$59,369

(22) Components of other comprehensive income

3-month period ended 30 June 2024

				Income tax
				relating to
		Reclassification	Other	components of	Other
		adjustments	comprehensive	other	comprehensive
	Arising during	during the	income, before	comprehensive	income, net of
	the period	period	tax	income	tax
Items that will not be reclassified subsequently to
profit or loss:
Unrealized gains (losses) from equity instruments	$(36,343)	$ -	$(36,343)	$ -	$(36,343)
investments measured at fair value through
other comprehensive income
Share of other comprehensive income (loss) of	10,106	-	10,106	-	10,106
associates and joint ventures which will not be
reclassified subsequently to profit or loss
Items that may be reclassified subsequently to profit
or loss:
Exchange differences on translation of foreign	93,102	-	93,102	(18,075)	75,027
operations
Share of other comprehensive income (loss) of	1,669	-	1,669	-	1,669
associates and joint ventures which may be
reclassified subsequently to profit or loss
Total of other comprehensive income	$68,534	$ -	$68,534	$(18,075)	$50,459

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

3-month period ended 30 June 2023

3-month period ended 30 June 2023	0 June 2023
Arising during theperiod Items that will not be reclassified subsequently to profit or loss: Unrealized gains (losses) from equity instruments investments measured at fair value through other comprehensive income $15,819 Share of other comprehensive income (loss) of associates and joint ventures which will not be reclassified subsequently to profit or loss 21,354 Items that may be reclassified subsequently to profit or loss: Exchange differences on translation of foreign operations (274,217) Share of other comprehensive income (loss) of associates and joint ventures which may be reclassified subsequently to profit or loss (7,546) Total of other comprehensive income $(244,590) 6-month period ended 30 June 2024 Arising during theperiod Items that will not be reclassified subsequently to profit or loss: Unrealized gains (losses) from equity instruments investments measured at fair value through other comprehensive income $(38,663) Share of other comprehensive income (loss) of associates and joint ventures which will not be reclassified subsequently to profit or loss (10,663) Items that may be reclassified subsequently to profit or loss: Exchange differences on translation of foreign operations 384,439 Share of other comprehensive income (loss) of associates and joint ventures which may be reclassified subsequently to profit or loss 10,442 Total of other comprehensive income $345,555	Arising during theperiod	Reclassification adjustments during the period	Other comprehensive income, before tax	Income tax relating to components of other comprehensive income	Other comprehensive income, net of tax
	$15,819 21,354 (274,217) (7,546)	$ - - - -	$15,819 21,354 (274,217) (7,546)	$ - - 54,834 -	$15,819 21,354 (219,383) (7,546)
	$(244,590)	$ -	$(244,590)	$54,834	$(189,756)
		Reclassification adjustments during the period	Other comprehensive income, before tax	Income tax relating to components of other comprehensive income	Other comprehensive income, net of tax
	$(38,663) (10,663) 384,439 10,442	$ - - - -	$(38,663) (10,663) 384,439 10,442	$ - - (74,607) -	$(38,663) (10,663) 309,832 10,442
	$345,555	$ -	$345,555	$(74,607)	$270,948

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

6-month period ended 30 June 2023

Items that will not be reclassified subsequently to profit or loss: Unrealized gains (losses) from equity instruments investments measured at fair value through other comprehensive income Share of other comprehensive income (loss) of associates and joint ventures which will not be reclassified subsequently to profit or loss Items that may be reclassified subsequently to profit or loss: Exchange differences on translation of foreign operations Share of other comprehensive income (loss) of associates and joint ventures which may be reclassified subsequently to profit or loss Total of other comprehensive income	Arising during theperiod	Reclassification adjustments during the period	Other comprehensive income, before tax	Income tax relating to components of other comprehensive income	Other comprehensive income, net of tax
	$21,277 77,217 (269,518) (5,517)	$ - - - -	$21,277 77,217 (269,518) (5,517)	$ - - 54,085 -	$21,277 77,217 (215,433) (5,517)
	$(176,541)	$ -	$(176,541)	$54,085	$(122,456)

(23) Income tax

During the three-month and six-month periods ended 30 June 2024 and 2023, the major components of income tax expense (income) are as follows:

Income tax expense recognized in profit or loss

3-month periods ended 30 June 2024 2023 $441,553 $371,576 (182,020) (184,971) $259,533 $186,605	6-month periods ended 30 June	6-month periods ended 30 June
2024 $441,553 (182,020) $259,533	2024 $611,941 (34,806) $577,135	2023
		$551,400 (87,535)
		$463,865

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Income tax relating to components of other comprehensive income

3-month periods ended 30 June 2024 2023 $18,075 $(54,834) $18,075 $(54,834)	6-month periods ended 30 June	6-month periods ended 30 June
2024 $18,075 $18,075	2024 $74,607 $74,607	2023
		$(54,085)
		$(54,085)

Exposure to Pillar Two income taxes

Some subsidiaries of the Company are located in tax jurisdictions where Pillar Two Model Rules has been legislated or substantially enacted. As of 30 June 2024, the Group has assessed and determined that the Group is not exposed to Pillar Two income taxes arising from the legislation.

The assessment of income tax returns

As of 30 June 2024, the assessment of the income tax returns of the Company and its subsidiaries is as follows:

Company and its subsidiaries is as follows:
The Company Subsidiary- Kwan-Ze Corporation Ltd. Subsidiary- T-CONN Precision Co., Ltd. Subsidiary- Radbon Electronics Co., Ltd. Subsidiary- SINTOP Energy Management Co., Ltd. Subsidiary- ENMAGIC Renewable Energy Co., Ltd.	The assessment of income tax returns
	Assessed and approved up to 2022 Assessed and approved up to 2022 Assessed and approved up to 2021 Assessed and approved up to 2022 Assessed and approved up to 2021 Assessed and approved up to 2022

(24) Earnings per share

Basic earnings per share amounts are calculated by dividing net profit for the year attributable to ordinary equity holders of the parent entity by the weighted average number of ordinary shares outstanding during the year.

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Diluted earnings per share amounts are calculated by dividing the net profit attributable to ordinary equity holders of the parent entity (after adjusting for interest on the convertible preference shares) by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares.

3-month periods ended 30 June 2024 2023 $935,446 $912,003 240,033 239,123 $3.90 $3.82 $935,446 $912,003 2,811 4,403 $938,257 $916,406 240,033 239,123 2,886 3,796 89 65 243,008 242,984 $3.86 $3.78	6-month periods ended 30 June	6-month periods ended 30 June
2024 $935,446 240,033 $3.90 $935,446 2,811 $938,257 240,033 2,886 89 243,008 $3.86	2024 $1,846,988 240,033 $7.69 $1,846,988 5,623 $1,852,611 240,033 2,886 89 243,008 $7.62	2023
		$1,805,494
		238,605
		$7.57
		$1,805,494 8,895
		$1,814,389
		238,605 4,313 65
		242,983
		$7.47

There have been no other transactions involving ordinary shares or potential ordinary shares between the reporting date and completion of the financial statements.

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(25) Changes in parent’s interest in subsidiaries

The return of paid in capital from capital reduction by subsidiary

On 30 June 2023, BJSB TongAn had proceed from capital reduction of shares hold by the non-controlling. Consequently, the Group’s ownership interest in BJSB TongAn was increased to 100%. A cash consideration of NT$752,157 was paid to the non-controlling interest shareholders. The carrying amount of BJSB TongAn’s net assets (excluding goodwill on the original acquisition) was NT$1,910,184 thousand. Following is a schedule of reduction in BJSB TongAn including changes in non-controlling interests and adjustments to accumulated other comprehensive income:

Cash consideration paid to non-controlling shareholders Increase (decrease) to non-controlling interests Difference recognized in capital surplus or retained earning within equity	Amount
	$752,157 (385,052)
	$367,105

7. Related party transactions

All transactions between the Group’s consolidated entities have been eliminated in preparing consolidated financial statements, for other significant transactions information, please refer to Note 13. There were no significant transactions with related parties from non-consolidated entities.

Key management personnel compensation

3-month periods ended 30 June 2024 2023 $99,151 $96,726 13,410 13,064 $112,561 $109,790	6-month periods ended 30 June	6-month periods ended 30 June
2024 $99,151 13,410 $112,561	2024 $193,331 26,879 $220,210	2023
		$189,656 26,710
		$216,366

8. Assets pledged as security

None.

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

9. Commitments and contingencies

(a) The Company provided guarantees for subsidiaries’ financing to banks for the six-month period ended 30 June 2024. Please refer to Note 13.(1)(b).
(b) As of 30 June 2024 and 2023, the Group was issued letters of guarantee by banks in the amount of NT$10,500 thousand and NT$20,500 thousand for importing goods, respectively.

10. Losses due to major disasters

None.

11. Significant subsequent events

None.

12. Others

(1) Categories of financial instruments

Financial assets

Financial assets
Financial assets at fair value through profit or loss: Mandatorily measured at Fair value through profit or loss Financial assets at fair value through other comprehensive income Financial assets measured at amortized cost Cash and cash equivalents (excluding cash on hand) Financial assets measured at amortized cost Notes receivable Accounts receivable Other receivables Refundable deposits Subtotal Total		As of
	30 June 2024	31 December 2023	30 June 2023
	$425,919 396,930 5,838,054 81,030 1,696,664 6,808,303 345,185 101,632	$297,627 435,533 5,761,314 80,389 1,739,602 5,828,540 185,218 109,230	$290,594 443,776 6,847,787 1,370 1,833,571 6,598,912 360,367 89,819
	14,870,868	13,704,293	15,731,826
	$15,693,717	$14,437,453	$16,466,196

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

	As of
30 June 2024 $1,389,742 4,846,386 806,142 12,220 3,973,368 275,016 11,302,874 579 $11,303,453	31 December 2023 $2,552,289 4,813,738 799,113 16,858 1,770,085 287,782 10,239,865 1,488 $10,241,353	30 June 2023
		$3,063,490 6,154,530 908,578 19,561 3,794,239 316,049
		14,256,447
		1,243
		$14,257,690

(2) Financial risk management objectives and policies

The Group’s principal financial risk management objective is to manage the market risk, credit risk and liquidity risk related to its operating activates. The Group identifies measures and manages the aforementioned risks based on the Group’s policy and risk appetite.

The Group has established appropriate policies, procedures and internal controls for financial risk management. Before entering into significant transactions, due approval process by the Board of Directors and Audit Committee must be carried out based on related protocols and internal control procedures. The Group complies with its financial risk management policies at all times.

(3) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of the changes in market prices. Market prices comprise currency risk, interest rate risk and other price risk (such as equity risk).

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

In practice, it is rarely the case that a single risk variable will change independently from other risk variable, there are usually interdependencies between risk variables. However the sensitivity analysis disclosed below does not take into account the interdependencies between risk variables.

Foreign currency risk

The Group’s exposure to the risk of changes in foreign exchange rates relates primarily to the Group’s operating activities (when revenue or expense are denominated in a different currency from the Group’s functional currency) and the Group’s net investments in foreign subsidiaries.

The Group has certain foreign currency receivables to be denominated in the same foreign currency with certain foreign currency payables, therefore natural hedge is received. The Group also uses forward contracts to hedge the foreign currency risk on certain items denominated in foreign currencies. Hedge accounting is not applied as they did not qualify for hedge accounting criteria. Furthermore, as net investments in foreign subsidiaries are for strategic purposes, they are not hedged by the Group.

The foreign currency sensitivity analysis of the possible change in foreign exchange rates on the Group’s profit is performed on significant monetary items denominated in foreign currencies as at the end of the reporting period. The Group’s foreign currency risk is mainly related to the volatility in the exchange rates for USD, RMB and EUR.

Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Group’s exposure to the risk of changes in market interest rates relates primarily to the Group’s debt instrument investments at variable interest rates, bank borrowings with fixed interest rates and variable interest rates.

The interest rate sensitivity analysis is performed on items exposed to interest rate risk as at the end of the reporting period, including investments and borrowings with variable interest rates and interest rate swaps. At the reporting date, a change of 10 basis points of interest rate in a reporting period could cause the profit.

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Pre-tax sensitivity analysis of changes in related risk factors for the six-month periods ended 30 June 2024 and 2023 are as follows:

For the six-month period ended 30 June 2024

Main Risk Foreign currency risk Interest rate risk	Fluctuation NTD/USD rate +/− 1% NTD/RMB rate +/− 1% NTD/EUR rate +/− 1% Market rate +/− 10 basis points	Sensitivity of profit/loss +/− $49,927 +/− $98 +/− $6,819 −/+ $701	Sensitivity of equity
			−/+ $743 +/− $17,644 - -

For the six-month period ended 30 June 2023

Main Risk Foreign currency risk Interest rate risk	Fluctuation NTD/USD rate +/− 1% NTD/RMB rate +/− 1% NTD/EUR rate +/− 1% Market rate +/− 10 basis points	Sensitivity of profit/loss +/− $64,083 +/− $62 +/− $6,011 −/+ $1,542	Sensitivity of equity
			−/+ $402 +/− $2,721 - -

Equity price risk

The fair value of the Group’s listed and unlisted equity securities and conversion rights of the Euro-convertible bonds issued are susceptible to market price risk arising from uncertainties about future values of the investment securities. The Group’s listed and unlisted equity securities are classified under financial assets measured at fair value through profit or loss and financial assets measured at fair value through other comprehensive income, while conversion rights of the Euro-convertible bonds issued are classified as financial liabilities at fair value through profit or loss as it does not satisfy the definition of an equity component. The Group manages the equity price risk through diversification and placing limits on individual and total equity instruments. Reports on the equity portfolio are submitted to the Group’s senior management on a regular basis. The Group’s Board of Directors reviews and approves all equity investment decisions.

At the reporting date, a change of 10% in the price measured at fair value through profit or loss of the listed equity securities could increase/decrease the Group’s profit for the six-month periods ended 30 June 2024 and 2023 by NT$36,716 thousand and NT$ 21,745 thousand, respectively.

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Please refer to Note 12(9) for sensitivity analysis information of other equity instruments or derivatives that are linked to such equity instruments whose fair value measurement is categorized under Level 3.

(4) Credit risk management

Credit risk is the risk that a counterparty will not meet its obligations under a contract, leading to a financial loss. The Group is exposed to credit risk from operating activities (primarily for accounts receivables and notes receivables) and from its financing activities, including bank deposits and other financial instruments.

Credit risk is managed by each business unit subject to the Group’s established policy, procedures and control relating to credit risk management. Credit limits are established for all counter parties based on their financial position, rating from credit rating agencies, historical experience, prevailing economic condition and the Group’s internal rating criteria etc. Certain counter parties’ credit risk will also be managed by taking credit enhancing procedures, such as requesting for prepayment or insurance.

As of 30 June 2024, 31 December 2023 and 30 June 2023, amounts receivables from top ten customers represented 18% 、 24% and 16% of the total accounts receivables of the Group, respectively. The credit concentration risk of other accounts receivables is insignificant.

Credit risk from balances with banks, fixed income securities and other financial instruments is managed by the Group’s treasury in accordance with the Group’s policy. The Group only transacts with counterparties approved by the internal control procedures, which are banks and financial institutions, companies and government entities with good credit rating. Consequently, there is no significant credit risk for these counter parties.

(5) Liquidity risk management

The Group’s objective is to maintain a balance between continuity of funding and flexibility through the use of cash and cash equivalents, bank borrowings and convertible bonds. The table below summarizes the maturity profile of the Group’s financial liabilities based on the contractual undiscounted payments and contractual maturity. The payment amount includes the contractual interest. The undiscounted payment relating to borrowings with variable interest rates is extrapolated based on the estimated interest rate yield curve as of the end of the reporting period.

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Non-derivative financial liabilities

As of 30 June 2024 Loans Notes and Accounts payables Convertible bonds Lease liabilities As of 31 December 2023 Loans Notes and Accounts payables Convertible bonds Lease liabilities As of 30 June 2023 Loans Notes and Accounts payables Convertible bonds Lease liabilities	Less than 1year $1,407,318 4,846,386 834,988 88,718 $2,578,286 4,813,738 834,988 101,747 $3,084,947 6,154,530 36,159 124,117	2 to 3years $675 - - 76,853 $2,115 - - 85,662 $11,927 - 922,153 123,095	4 to 5years $ - - - 37,579 $ - - - 30,611 $85 - - 43,313	> 5years $ - - - 85,950 $ - - - 91,630 $ - - - 97,871	Total
					$1,407,993 4,846,386 834,988 289,100 $2,580,401 4,813,738 834,988 309,650 $3,096,959 6,154,530 958,312 388,396

Derivative financial liabilities

As of 30 June 2024

None.

As of 31 December 2023 None.

Less than 1 year 2 to 3 years 4 to 5 years > 5 years Total As of 30 June 2023 Forward exchange contracts Net settlement - outflow $(1,152) $ - $ - $ - $(1,152)

The table above contains the undiscounted net cash flows of derivative liabilities instruments.

(6) Reconciliation of liabilities from financing activities

Reconciliation of liabilities for the six-month period ended 30 June 2024:

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

As of 1 January 2024 Cash Flow Non-cash change Currency change As of 30 June 2024	Short-term loans $2,552,289 (1,162,547) - - $1,389,742	Long-term loan (including maturity within ayear) $16,858 (4,638) - - $12,220	Lease liabilities $287,782 (48,805) 36,039 - $275,016	Deposits received	Convertible bonds (including maturity within ayear)	Total liabilities from financing activities
				$233 - - -	$799,113 - 7,029 -	$3,656,275 (1,215,990) 43,068 -
				$233	$806,142	$2,483,353

Reconciliation of liabilities for the six-month period ended 30 June 2023:

As of 1 January 2023 Cash Flow Non-cash change Currency change As of 30 June 2023	Short-term loans $3,457,685 (394,195) - - $3,063,490	Long-term loan (including maturity within ayear) $21,582 (2,021) - - $19,561	Lease liabilities $368,370 (54,040) 1,719 - $316,049	Deposits received	Convertible bonds (including maturity within ayear)	Total liabilities from financing activities
				$233 (2) - -	$1,121,929 - (213,351) -	$4,969,799 (450,258) (211,632) -
				$231	$908,578	$4,307,909

(7) Fair values of financial instruments
(a) The methods and assumptions applied in determining the fair value of financial instruments:

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following methods and assumptions were used by the Group to measure or disclose the fair values of financial assets and financial liabilities:

a. The carrying amount of cash and cash equivalents, accounts receivables, accounts payable and other current liabilities approximate their fair value due to their short maturities.
b. For financial assets and liabilities traded in an active market with standard terms and conditions, their fair value is determined based on market quotation price (including listed equity securities, beneficiary certificates, bonds and futures etc.) at the reporting date.

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

c. Fair value of equity instruments without market quotations (including private placement of listed equity securities, unquoted public company and private company equity securities) are estimated using the market method valuation techniques based on parameters such as prices based on market transactions of equity instruments of identical or comparable entities and other relevant information (for example, inputs such as discount for lack of marketability, P/E ratio of similar entities and Price-Book ratio of similar entities).
d. Fair value of debt instruments without market quotations, bank loans, bonds payable and other non-current liabilities are determined based on the counterparty prices or valuation method. The valuation method uses DCF method as a basis, and the assumptions such as the interest rate and discount rate are primarily based on relevant information of similar instrument (such as yield curves published by the Taipei Exchange, average prices for Fixed Rate Commercial Paper published by Reuters and credit risk, etc.)
e. The fair value of derivatives which are not options and without market quotations, is determined based on the counterparty prices or discounted cash flow analysis using interest rate yield curve for the contract period. Fair value of option-based derivative financial instruments is obtained using on the counterparty prices or appropriate option pricing model (for example, Black-Scholes model) or other valuation method (for example, Monte Carlo Simulation).
(b) Fair value of financial instruments measured at amortized cost

The carrying amount of the Group’s financial assets and liabilities measured at amortized cost approximate their fair value.

Please refer to Note 12(9) for fair value measurement hierarchy for financial instruments of the Group.

(8) Derivative financial instruments

The related information for derivative financial instruments not qualified for hedge accounting and not yet settled as of 30 June 2024, 31 December 2023 and 30 June 2023 are as follows:

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Forward exchange contract and cross currency swaps

The Group entered into forward exchange contract and cross currency swaps to manage its exposure to financial risk, but these contracts are not designated as hedging instruments. The table below lists the information related to forward exchange contract and cross currency swaps:

Items As of 30 June 2024 Forward exchange contracts As of 31 December 2023 Forward exchange contracts As of 30 June 2023 Forward exchange contracts	Notional Amount Sell USD USD 510 Sell USD USD 350 Sell USD USD 1,130	Contract Period
		From 03April2024 to 18September2024 From 20 October 2023 to 18 March 2024 From 07April2023 to 18September2023

Embedded derivatives

The embedded derivatives arising from issuing convertible bonds have been separated from the host contract and carried at fair value through profit or loss. Please refer to Note 6(13) for further information on this transaction.

The counterparties for the aforementioned derivatives transactions are well known domestic or overseas banks, as they have sound credit ratings, the credit risk is insignificant.

With regard to the forward exchange contracts and cross currency swaps, as they have been entered into to hedge the foreign currency risk of net assets or net liabilities, and there will be corresponding cash inflow or outflows upon maturity and the Group has sufficient operating funds, the cash flow risk is insignificant.

(9) Fair value measurement hierarchy
(a) Fair value measurement hierarchy

All asset and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, based on the lowest level input that is significant to the fair value measurement as a whole. Level 1, 2 and 3 inputs are described as follows:

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Level 1 – Quoted (unadjusted) market prices in active markets for identical assets or liabilities that the entity can access at the measurement date

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

Level 3 – Unobservable inputs for the asset or liability

For assets and liabilities that are recognized in the financial statements on a recurring basis, the Group determines whether transfers have occurred between Levels in the hierarchy by re-assessing categorization at the end of each reporting period.

(b) Fair value measurement hierarchy of the Group’s assets and liabilities

The Group does not have assets that are measured at fair value on a nonrecurring basis. Fair value measurement hierarchy of the Group’s assets and liabilities measured at fair value on a recurring basis is as follows:

As of 30 June 2024

As of 30 June 2024
Financial assets: Financial assets at fair value through profit or loss Stocks Corporate bonds Forward exchange contracts Financial assets at fair value through other comprehensive income Equity instrument measured at fair value through other comprehensive income Financial liabilities: Financial liabilities at fair value through profit or loss Embedded derivative-bonds	Level 1 $367,155 58,608 - - $ -	Level 2 $ - - 156 - $579	Level 3 $ - - - 396,930 $ -	Total
				$367,155 58,608 156 396,930 $579

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

As of 31 December 2023 Level 1 Level 2 Financial assets: Financial assets at fair value through profit or loss Stocks $224,138 $ - Corporate bonds 73,430 - Forward exchange contracts - 59 Financial assets at fair value through other comprehensive income Equity instrument measured at fair value through other comprehensive income - - Financial liabilities: Financial liabilities at fair value through profit or loss Embedded derivative-bonds $ - $1,488 As of 30 June 2023 Level 1 Level 2 Financial assets: Financial assets at fair value through profit or loss Stocks $217,450 $ - Corporate bonds 73,144 - Financial assets at fair value through other comprehensive income Equity instrument measured at fair value through other comprehensive income - - Financial liabilities: Financial liabilities at fair value through profit or loss Embedded derivative-bonds $ - $91 Forward exchange contracts - 1,152 Transfers between Level 1 and Level 2 during the period	Level 3 $ - - - 435,533 $ - Level 3 $ - - 443,776 $ - -	Total
		$224,138 73,430 59 435,533 $1,488 Total
		$217,450 73,144 443,776 $91 1,152

During the six-month periods ended 30 June 2024 and 2023, there were no transfers between Level 1 and Level 2 fair value measurements.

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Reconciliation for fair value measurements in Level 3 of the fair value hierarchy for movements during the period is as follows:

Balance, beginning of year Total gains and losses recognized Amount recognized in OCI (presented in “Unrealized gains (losses) from equity instruments investments measured at fair value through other comprehensive income) Acquisition The return of paid-in capital for capital reduction Exchange differences Balance, end of period	Assets At fair value through other comprehensiveincome	Assets At fair value through other comprehensiveincome
	Stocks
	6-monthperiods	ended 30 June
	2024 $435,533 (38,663) - - 60 $396,930	2023
		$358,828 21,277 75,000 (11,351) 22
		$443,776

Information on significant unobservable inputs to valuation

Description of significant unobservable inputs to valuation of recurring fair value measurements categorized within Level 3 of the fair value hierarchy is as follows:

As of 30 June 2024

Relationship Valuation Significant Quantitative between inputs Sensitivity of the input to techniques unobservable inputs information and fair value fair value Financial assets: At fair value through other comprehensive income Stocks and others Market approach Discount for lack of 30% The higher the 10% increase (decrease) marketability discount for lack in the discount for lack of of marketability, marketability would the lower the fair result in (decrease) value of the stocks increase in the Group’s profit or loss by NT$39,693 thousand

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

As of 31 December 2023

Financial assets: At fair value through other comprehensive income Stocks and others As Financial assets: At fair value through other comprehensive income Stocks and others Stocks and others	Valuation techniques	Significant unobservableinputs	Quantitative information	Relationship between inputs andfairvalue	Sensitivity of the input to fairvalue
	Market approach Discount for lack of marketability of 30 June 2023 Valuation techniques Significant unobservableinputs		30% Quantitative information	The higher the discount for lack of marketability, the lower the fair value of the stocks Relationship between inputs andfairvalue	10% increase (decrease) in the discount for lack of marketability would result in (decrease) increase in the Group’s profit or loss by NT$43,553 thousand Sensitivity of the input to fairvalue
	Market approach Option pricing model	Discount for lack of marketability Fluctuation rate	30% 34.08%	The higher the discount for lack of marketability, the lower the fair value of the stocks The higher the fluctuation rate, the higher the fair value of the stocks	10% increase (decrease) in the discount for lack of marketability would result in (decrease) increase in the Group’s profit or loss by NT$43,719 thousand 10% increase (decrease) in the fluctuation rate would result in (decrease) increase in the Group’s profit or loss by NT$659 thousand

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Valuation process used for fair value measurements categorized within Level 3 of the fair value hierarchy

The Group’s Financial Department is responsible for validating the fair value measurements and ensuring that the results of the valuation are in line with market conditions, based on independent and reliable inputs which are consistent with other information, and represent exercisable prices. The Department analyses the movements in the values of assets and liabilities which are required to be re-measured or re-assessed as per the Group’s accounting policies at each reporting date.

(c) Fair value measurement hierarchy of the Group’s assets and liabilities not measured at fair value but for which the fair value is disclosed.

Level 1	Level 2	Level 3	Total
$3,062,245 Level 1	$ - Level 2	$ - Level 3	$3,062,245 Total
$3,077,696 Level 1	$ - Level 2	$ - Level 3	$3,077,696 Total
$2,315,002	$ -	$ -	$2,315,002

(10) Significant assets and liabilities denominated in foreign currencies

Information regarding the significant assets and liabilities denominated in foreign currencies is listed below:

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Financial assets Monetaryitems: USD RMB EUR Financial liabilities Monetaryitems: USD RMB EUR	As of 30 June 2024 Foreign currencies Foreign exchange rate NTD $197,510 32.45 $6,409,212 823,861 4.47 3,679,420 21,171 34.71 734,887 45,944 32.45 1,490,881 426,597 4.47 1,905,210 1,527 34.71 53,007	As of 31 December 2023 Foreign currencies Foreign exchange rate NTD $203,756 30.74 $6,262,449 613,163 4.33 2,657,299 20,406 34.01 694,039 58,334 30.74 1,792,907 483,922 4.33 2,097,199 11,058 34.01 376,105	As Foreign currencies $268,535 790,690 19,094 64,003 725,764 1,311	of 30 June	2023 NTD
				Foreign exchange rate 31.14 4.29 33.80 31.14 4.29 33.80
					$8,360,834 3,389,993 645,439 1,992,745 3,111,629 44,303

The Group has a number of different functional currencies; therefore, we are unable to disclose the exchange loss and gain of monetary financial assets and financial liabilities under each foreign currency that has significant impact. The Group recognized NT$23,802 thousand, NT$188,288 thousand, NT$78,155 thousand and NT$191,301 thousand for foreign exchange gains for the three-month and six-month periods ended 30 June 2024 and 2023, respectively.

The above information is disclosed based on the carrying amount of foreign currency (after conversion to functional currency).

(11) Capital management

The primary objective of the Group’s capital management is to ensure that it maintains a strong credit rating and healthy capital ratios in order to support its business and maximize shareholder value. The Group manages its capital structure and makes adjustments to it, in light of changes in economic conditions. To maintain or adjust the capital structure, the Group may adjust dividend payments to shareholders, return capital to shareholders or issue new shares.

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(12) Transfer of financial assets information

Part of the Group's notes receivable have been signed into with recourse contracts with financial institutions. Yet the Group transferred the cash flow rights of such receivables, the company still bear the credit risk that notes receivable cannot be collected, which does not meet the derecognition of financial assets. The transaction related information is as follows:

As of 30 June 2024

Counterparty ICBC Anqing Tongcheng Branch	Amount to be transferred $113,737	Amount have been advanced`（`Note`）`
		$113,737

As of 31 December 2023

Counterparty HSBC Bank (China) Shanghai Company Limited Fubon Bank (China) Tianjin Branch Bank of Ningbo Jiangyin Branch China Merchants Bank Beijing Jiuxianqiao Science and Technology Finance Sub Branch ICBC Anqing Tongcheng Branch	Amount to be transferred $6,188 21,669 47,569 78,008 218,743	Amount have been advanced`（`Note`）`
		$6,188 21,669 47,569 78,008 218,743

As of 30 June 2023

Counterparty BOCOM Anqing Tongcheng Branch HSBC Bank (China) Shanghai Company Limited Bank of Ningbo Jiangyin Branch ICBC Anqing Tongcheng Branch	Amount to be transferred $27,486 35,109 192,932 255,154	Amount have been advanced`（`Note`）`
		$27,486 35,109 192,932 255,154

Note: Recorded in short-term loans

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

13. Other disclosure

(1) Information at significant transactions
(a) Financing provided to others for the six-month period ended 30 June 2024: Please refer to Attachment 1.
(b) Endorsement/Guarantee provided to others for the six-month period ended 30 June 2024: Please refer to Attachment 2.
(c) Securities held as of 30 June 2024: Please refer to Attachment 3.
(d) Individual securities acquired or disposed of with accumulated amount exceeding the lower of NT$300 million or 20 percent of the capital stock for the six-month period ended 30 June 2024: None.
(e) Acquisition of individual real estate with amount exceeding the lower of NT$300 million or 20 percent of the capital stock for the six-month period ended 30 June 2024: None.
(f) Disposal of individual real estate with amount exceeding the lower of NT$300 million or 20 percent of the capital stock for the six-month period ended 30 June 2024: None.
(g) Related party transactions for purchases and sales amounts exceeding the lower of NT$100 million or 20 percent of the capital stock for the six-month period ended 30 June 2024: Please refer to Attachment 4.
(h) Receivables from related parties with amounts exceeding the lower of NT$100 million or 20 percent of the capital stock as of 30 June 2024: Please refer to Attachment 5.
(i) Financial instruments and derivative transactions: Please refer to Note 12 (8).
(j) The business relationship, significant transactions and amounts between parent company and subsidiaries: Please refer to Attachment 6.

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(2) Information on investees:

Names, locations, main businesses and products, original investment amount, investment as of 30 June 2024, net income (loss) of investee company and investment income (loss) recognized as of 30 June 2024: Please refer to Attachment 7.

(3) Information on investments in mainland China
(a) Investment in Mainland China: Please refer to Attachment 8.
(b) Directly or indirectly significant transactions through third regions with the investees in Mainland China: Please refer to Attachment 1, 2, 4, 5 and 6.
(4) Information of major shareholders

Shares Shareholders	Total Shares Owned	Ownership Percentage
Investment Account of Small Denomination World Funds Co. Ltd. in custody of Standard Chartered Bank	14,384,092	5.99%

14. Segment information

For management purposes, the Group is organized into business units based on their products and services and has five reportable operating segments as follows:

(1) Green Energy: The segment focuses on the development, manufacturing and sales of cable assembly and control modules for green energy industries such as solar photovoltaic, wind power and offshore wind power.
(2) Industrial Application: The segment focuses on the development, manufacturing and sales of industrial application products such as robot arm control cable assemblies, control cabinet cable assemblies and panel connection cables.

100

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(3) Medical Health: This segment is responsible for the development, manufacture and sale of medical equipment cables such as electrocardiographs, oximeters and X-ray wiring harnesses.
(4) Automotive& Aviation: The segment focuses on the development, manufacturing and sales of electric vehicle charging guns and charging piles, automotive oxygen sensors and parking-related equipment cables.
(5) Communication: The segment focuses on the development, manufacturing and sales of communication related cables such as smart phones, smart wearable devices and VR /AR HMD devices.

Operating segments have been aggregated to be reported as aforementioned operating segments.

Management monitors the operating results of its business units separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on operating profit or loss and is measured based on accounting policies consistent with those in the consolidated financial statements. However income taxes are managed on a group basis and are not allocated to operating segments.

Transfer prices between operating segment are on an arm’s length basis in a manner similar to transactions with third parties.

Information on profit or loss of the reportable segment for the three-month and six-month periods ended 30 June 2024 and 2023 were as of:

3-month period ended 30 June 2024

Revenue External customer Inter-segment Total revenue Segment profit

					Reconciliation
Green	Industrial	Medical	Automotive&		and Eliminated
Energy	Application	Health	Aviation	Communication	(Note)	Total
$2,363,018	$2,586,245	$675,685	$1,027,189	$1,653,207	$ -	$8,305,344
347,849	374,996	98,703	151,409	238,495	(1,211,452)	-
$2,710,867	$2,961,241	$774,388	$1,178,598	$1,891,702	$(1,211,452)	$8,305,344
$319,731	$431,882	$137,359	$109,226	$198,412	$ -	$1,196,610

Note: Inter-segment revenues were eliminated when consolidated.

101

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

3-month period ended 30 June 2023

Revenue External customer Inter-segment Total revenue Segment profit

					Reconciliation
Green	Industrial	Medical	Automotive&		and Eliminated
Energy	Application	Health	Aviation	Communication	(Note)	Total
$2,721,490	$2,477,404	$759,453	$1,197,297	$1,567,684	$ -	$8,723,328
665,619	614,895	187,248	292,047	392,088	(2,151,897)	-
$3,387,109	$3,092,299	$946,701	$1,489,344	$1,959,772	$(2,151,897)	$8,723,328
$232,175	$307,767	$94,714	$131,986	$119,704	$ -	$886,346

Note: Inter-segment revenues were eliminated when consolidated.

6-month period ended 30 June 2024

Revenue External customer Inter-segment Total revenue Segment profit

					Reconciliation
Green	Industrial	Medical	Automotive&		and Eliminated
Energy	Application	Health	Aviation	Communication	(Note)	Total
$4,991,385	$4,846,389	$1,345,095	$2,191,396	$2,966,965	$ -	$16,341,230
683,309	663,460	184,140	299,997	406,171	(2,237,077)	-
$5,674,694	$5,509,849	$1,529,235	$2,491,393	$3,373,136	$(2,237,077)	$16,341,230
$742,780	$790,463	$278,095	$257,182	$357,215	$ -	$2,425,735

Note: Inter-segment revenues were eliminated when consolidated.

6-month period ended 30 June 2023

Revenue External customer Inter-segment Total revenue Segment profit	Green Energy $5,548,834 1,534,376 $7,083,210 $590,566	Industrial Application $4,759,313 1,316,056 $6,075,369 $690,297	Medical Health $1,499,602 414,673 $1,914,275 $260,564	Automotive& Aviation $2,466,742 682,109 $3,148,851 $278,964	Communication $2,914,510 805,927 $3,720,437 $277,973	Reconciliation and Eliminated (Note) $ - (4,753,141) $(4,753,141) $ -	Total
							$17,189,001 -
							$17,189,001
							$2,098,364

Note: Inter-segment revenues were eliminated when consolidated.

102

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Information on assets and liabilities of the Group’s operating segments as of 30 June 2024, 31 December 2023 and 30 June 2023:

Segment assets:

30 June 2024 31 December 2023 30 June 2023

Green Energy $13,641,608 $13,569,525 $15,379,509	Industrial Application $13,245,330 $12,369,167 $13,191,223	Medical Health $3,676,186 $3,672,165 $4,156,396	Automotive& Aviation $5,989,153 $6,754,851 $6,836,983	Communication $8,108,808 $8,374,472 $8,078,046	Reconciliation and Eliminated (Note) $(15,797,394) $(14,157,124) $(14,563,386)	Total
						$28,863,691
						$30,583,056
						$33,078,771

Segment liabilities:

30 June 2024 31 December 2023 30 June 2023	Green Energy $5,462,365 $5,576,535 $7,802,037	Industrial Application $5,303,687 $5,083,236 $6,691,918	Medical Health $1,472,016 $1,509,114 $2,108,543	Automotive& Aviation $2,398,174 $2,775,975 $3,468,407	Communication $3,246,924 $3,441,576 $4,098,000	Reconciliation and Eliminated (Note) $(2,778,448) $(1,747,168) $(3,502,637)	Total
							$15,104,718
							$16,639,268
							$20,666,268

103

Attachment 1: Financing provided to others for the six-month period ended 30 June 2024

No.	Lender (Note 1)	Counterparty	Financial statement account	Related Party	Maximum balance for the period	Ending balance	Actual amount provided	Interest rate	Nature of financing	Amount of sales to (purchases from) counter-party	Reason for short-term financing	Allowance for doubtful accounts	Collateral	Collateral	Limit of financing amount for individual counter-party (Note2)	Limit of total financing amount (Note3)
													Item	Value
0	The Company	SB Hungary	Other receivables	Y	$350,849	$347,118	$277,695	0.00%	Note 4	$ -	Need for operating	$ -	-	$ -	$1,357,695	$5,430,778
0	The Company	SB Ohio	Other receivables	Y	$292,878	$292,050	$181,720	0.00%	Note 4	$ -	Need for operating	$ -	-	$ -	$1,357,695	$5,430,778
0	The Company	T-CONN	Other receivables	Y	$100,000	$100,000	$ -	1.70%	Note 4	$ -	Need for operating	$ -	-	$ -	$1,357,695	$5,430,778
1	KSEM	JSEM	Other receivables	Y	$5,393	$5,359	$5,359	0.00%	Note 4	$ -	Need for operating	$ -	-	$ -	$6,252	$6,252
2	BJSB	XZEM	Other receivables	Y	$44,938	$44,661	$44,661	0.00%	Note 4	$ -	Need for operating	$ -	-	$ -	$59,453	$59,453
3	BJSB TongAn	XZEM	Other receivables	Y	$179,752	$178,644	$178,644	0.00%	Note 4	$ -	Need for operating	$ -	-	$ -	$919,788	$919,788

Note 1: The above transations were all made between consolidated entities in the Group and have been reversed.

Note 2: Total financing limit for individual counterparty was set at 10% of the lender's net worth of the financial statements which were reviewed by the certified public accountants as of 30 June 2024. The Company: $13,576,946*10%=$1,357,695

Total financing limit for individual counterparty was set at 40% of the lender's net worth of the financial statements which were reviewed by the certified public accountants as of 30 June 2024. BJSB TongAn: $2,299,471*40%=$919,788

Total financing limit for individual counterparty was set at 40% of the lender's net worth of the financial statements which were not reviewed by the certified public accountants as of 30 June 2024. KSEM: $15,629*40%=$6,252

BJSB: $148,633*40%=$59,453

Note 3: Total financing limit was set at 40% of the lender's net worth of the financial statements which were reviewed by the certified public accountants as of 30 June 2024. The Company: $13,576,946*40%=$5,430,778

BJSB TongAn: $2,299,471*40%=$919,788

Total financing limit was set at 40% of the lender's net worth of the financial statements which were not reviewed by the certified public accountants as of 30 June 2024. KSEM: $15,629*40%=$6,252

BJSB: $148,633*40%=$59,453

Note 4: For short-term financing.

104

Attachment 2: Endorsement/Guarantee provided to others for the six-month period ended 30 June 2024

(Note 1) No.	Endorsor/ Guarantor	Receiving party	Receiving party	Limit of guarantee/endorsement amount for receiving party (Note 3)	Maximum balance for the period	Ending balance	Actual amount provided	Amount of collateral guarantee/ endorsement	Percentage of accumulated guarantee amount to net assets value from the latest financial statement	Limit of total guarantee/endorsement amount (Note 4)	Parent company's guarantee/endorsement amount to subsidiaries (Note 5)	Subsidiaries' guarantee/endorsement amount to parent company (Note 5)	Guarantee/endorsement amount to company in Mainland China (Note 5)
		Company name	Releationship (Note 2)
0	The Company	SHSB	2	$5,430,778	$130,168	$129,800	$ -	None	0.96%	$13,576,946	Y	N	Y
0	The Company	JYSB	2	$5,430,778	$1,806,081	$1,800,975	$ -	None	13.26%	$13,576,946	Y	N	Y
0	The Company	TCSB	2	$5,430,778	$615,194	$612,705	$ -	None	4.51%	$13,576,946	Y	N	Y
0	The Company	SZSB	2	$5,430,778	$16,271	$16,225	$ -	None	0.12%	$13,576,946	Y	N	Y
0	The Company	SB Hungary	2	$5,430,778	$512,274	$509,698	$ -	None	3.75%	$13,576,946	Y	N	N
0	The Company	Radbon	2	$4,073,084	$250,000	$250,000	$4,461	None	1.84%	$13,576,946	Y	N	N
0	The Company	SB Ohio	2	$5,430,778	$553,214	$551,650	$82,747	None	4.06%	$13,576,946	Y	N	N
0	The Company	SB USA	2	$5,430,778	$16,271	$16,225	$9,735	None	0.12%	$13,576,946	Y	N	N
0	The Company	BJSB TongAn	2	$5,430,778	$331,928	$330,990	$ -	None	2.44%	$13,576,946	Y	N	Y
0	The Company	JSEM	2	$5,430,778	$663,857	$661,980	$ -	None	4.88%	$13,576,946	Y	N	Y
0	The Company	XZEM	2	$5,430,778	$663,857	$661,980	$27,637	None	4.88%	$13,576,946	Y	N	Y
1	T-CONN	T-CONN Zhongshan	2	$150,711	$254,891	$81,125	$ -	None	21.53%	$376,778	N	N	Y
1	BJSB TongAn	XZEM	2	$919,788	$269,628	$267,966	$ -	None	11.65%	$2,299,471	N	N	Y

Note 1: The Company and its subsidiaries are coded as follows:
The Company is coded "0".
The subsidiaries are coded consecutively beginning from "1" in the order presented in the table above.
Note 2: According to the "Guidelines Governing the Preparation of financial statements by Securities Issuers" issued by the R.O.C. Securities and Futures Bureau, receiving parties should be disclosed as one of the following:
A company with which it does business.
A company in which the public company directly and indirectly holds more than 50% of the voting shares.
A company that directly and indirectly holds more than 50% of the voting shares in the public company.
A company in which the public company holds, directly or indirectly, 90% or more of the voting shares.
A company that fulfills its contractual obligations by providing mutual endorsements/guarantees for another company in the same industry or for joint builders for purposes of undertaking a construction project.
A company that all capital contributing shareholders make endorsements/guarantees for their jointly invested company in proportion to their shareholding percentages.
Companies in the same industry provide among themselves joint and several security for a performance guarantee of a sales contract for pre-construction homes pursuant to the Consumer Protection Act for each other.
Note 3: Limit of guarantee/endorsement amount for overseas subsidiaries is 40% of the net worth of the financial statements reviewed by the certified public accountants as of 30 June 2024. $13,576,946*40%=$5,430,778
Limit of guarantee/endorsement amount for domestic subsidiaries is 30% of the net worth of the financial statements of the company reviewed by the certified public accountants as of 30 June 2024. $13,576,946*30%=$4,073,084
Limit of guarantee/endorsement amount for T-CONN Zhongshan is 40% of the net worth of the financial statements of T-CONN which were not reviewed by the certified public accountants as of 30 June 2024. $376,778*40%=$150,711
Limit of guarantee/endorsement amount for XZEM is 40% of the net worth of the financial statements of BJSB TongAn reviewed by the certified public accountants as of 30 June 2024. $2,299,471*40%=$919,788
Note 4: Limit of total guarantee/ endorsement amount is 100% of the net worth of the financial statements reviewed by the certified public accountants as of 30 June 2024.
Limit of total guarantee/ endorsement amount is 100% of the net worth of the financial statements of T-CONN which were not reviewed by the certified public accountants as of 30 June 2024. Limit of total guarantee/ endorsement amount is 100% of the net worth of the financial statements of BJSB TongAn reviewed by the certified public accountants as of 30 June 2024.
Note 5: "Y" for the listed (OTC) parent company guarantees/endorses for subsidiary, subsidiary guarantees/endorses for the listed (OTC) parent company or guarantee/endorse for companies in Mainland China.

105

Attachment 3: Securities held as of 30 June 2024. (Excluding subsidiaries, associates and joint ventures)

Holding Company	Type and name of securities	Relationship (Note 1)	Financial statement account	As of 30 June 2024	As of 30 June 2024	As of 30 June 2024	As of 30 June 2024	Note
				Units/bonds/shares	Carrying amount	Percentage of ownership (%)	Fair value
The Company	Chengding Venture Capital Co., Ltd.	-	Financial assets measured at fair value through other comprehensive income – non-current	15,000,000	$118,880	11.11%	$118,880	-
The Company	Top Taiwan XIV Venture Capital CO., Ltd.	-	Financial assets measured at fair value through other comprehensive income – non-current	5,000,000	33,646	2.29%	33,646	-
The Company	Top Taiwan Venture Capital Co., Ltd.	-	Financial assets measured at fair value through other comprehensive income – non-current	4,095,000	38,248	7.50%	38,248	-
The Company	Dynahz Technologies	-	Financial assets measured at fair value through other comprehensive income – non-current	2,771,670	53,144	16.67%	53,144	-
The Company	Top Taiwan VII Venture Capital Co., Ltd.	-	Financial assets measured at fair value through other comprehensive income – non-current	88,775	841	3.06%	841	-
The Company	VAN MOOF Global Holding BV	-	Financial assets measured at fair value through other comprehensive income – non-current	780,000	-	0.36%	-	-
The Company	Bandrich, Inc.	-	Financial assets measured at fair value through other comprehensive income – non-current	330,000	94	1.62%	94	-
The Company	SINTOP I Co., Ltd.	-	Financial assets measured at fair value through other comprehensive income – non-current	15,000,000	105,039	15.00%	105,039	-
Kwan-Ze	Actmax Technologies Inc.	-	Financial assets measured at fair value through other comprehensive income – non-current	-	6,273	19.00%	6,273	-
Kwan-Ze	Chengding Venture Capital Co., Ltd.	-	Financial assets measured at fair value through other comprehensive income – non-current	5,000,000	39,627	3.70%	39,627	-
SINBON USA L.L.C	HOTWIRE Development LLC	-	Financial assets measured at fair value through other comprehensive income – non-current	-	735	10.00%	735	-
SINBON USA L.L.C	Katalyst Interactive Inc	-	Financial assets measured at fair value through other comprehensive income – non-current	36,511	403	0.24%	403	-
T-CONN	VAN MOOF Global Holding BV	-	Financial assets measured at fair value through other comprehensive income – non-current	780,000	-	0.36%	-	-
			Total		$396,930
The Company	Nextronics Engineering Corp.	-	Financial asset measured at fair value through profit or loss – current	3,009,000	$367,098	8.37%	$367,098	-
The Company	Trutankless, Inc.	-	Financial asset measured at fair value through profit or loss – current	25,000	57	0.14%	57	-
The Company	Nextronics Engineering Corp. Private placement unsecured conversion bonds	-	Financial asset measured at fair value through profit or loss – current	600	58,608	-%	58,608	-
The Company	Damon Motors Inc conversion bonds	-	Financial asset measured at fair value through profit or loss – current	-	-	-%	-	-
			Total		$425,763

Note 1: Not required if the issuer of securities is not a related party.

106

Attachment 4: Related party transactions for purchases and sales exceeding the lower of NT$100 million or 20 percent of the capital stock for the six-month period ended 30 June 2024.

Related-party	Counter-party	Relationship	Intercompany Transactions	Intercompany Transactions	Intercompany Transactions	Intercompany Transactions	Details of non-arm's length transaction	Details of non-arm's length transaction	Notes and accounts receivable (payable)	Notes and accounts receivable (payable)
			Purchases (Sales)	Amount	Percentage of total consolidated purchase (Sales)	Terms	Unit price	Terms	Carrying amount	Percentage of total consolidated receivables (payable)
The Company	JYSB	Subsidiary	Purchase	$956,981	40.15%	Trading condition is the same as other supplier	N/A	N/A	$(488,747)	-40.60%
HKSB	JYSB	Associates	Purchase	$363,165	16.01%	Trading condition is the same as other supplier	N/A	N/A	$(241,935)	-18.07%
T-CONN	T-CONN Zhongshan	Subsidiary	Purchase	$149,391	61.90%	Trading condition is the same as other supplier	N/A	N/A	$(163,697)	-50.84%
BJSB TongAn	JSEM	Subsidiary	Purchase	$137,525	18.17%	Trading condition is the same as other supplier	N/A	N/A	$(94,040)	-11.38%

Attachment 5: Receivables from related parties with accounts exceeding the lower of NT$100 million or 20 percent of the capital stock as of 30 June 2024.

Related-party	Counter-party	Relationship	Amount	Average collection turnover	Overdue account receivable-related parties	Overdue account receivable-related parties	Collection in subsequent period	Allowance for doubtful debts
					Amount	Processing method
The Company	T-CONN	Subsidiary	$311,066	-	$ -	-	$ -	$ -
BJSB TongAn	JSEM	Subsidiary	$181,790	0.54	$ -	-	$ -	$ -
JYSB	The Company	Parent	$488,747	4.26	$ -	-	$ -	$ -
JYSB	HKSB	Associates	$241,935	3.33	$ -	-	$ -	$ -
T-CONN Zhongshan	T-CONN	Parent	$163,697	1.77	$ -	-	$ -	$ -

Note 1: The financing provided to others has been disclosed in Attachment 1.

107

Attachment 6: The business relationship, significant transactions and amounts between parent company and subsidiaries

No. (Note 1)	Related-party	Counterparty	Relationship with the Company (Note 2)	Transactions	Transactions	Transactions	Transactions
				Account	Amount	Terms	Percentage of consolidated operating revenues or consolidated total assets(Note3)
0	The Company	JYSB	1	Purchase	$956,981	(Note 4)	5.86%
1	JYSB	The Company	2	Sales	$956,981	(Note 4)	5.86%
2	HKSB	JYSB	3	Purchase	$363,165	(Note 4)	2.22%
1	JYSB	HKSB	3	Sales	$363,165	(Note 4)	2.22%
3	T-CONN	T-CONN Zhongshan	3	Purchase	$149,391	(Note 4)	0.91%
4	T-CONN Zhongshan	T-CONN	3	Sales	$149,391	(Note 4)	0.91%
5	BJSB TongAn	JSEM	3	Purchase	$137,525	(Note 4)	0.84%
6	JSEM	BJSB TongAn	3	Sales	$137,525	(Note 4)	0.84%

Note 1 : The Company is coded "0".The subsidiaries are coded consecutively beginning from "1" in the order presented in the table above.
Note 2 : Transactions are categorized as follows:
The holding company to subsidiary.
Subsidiary to holding company.
Subsidiary to subsidiary.
Note 3 : The percentage with respect to the consolidated asset/liability for transactions of balance sheet items are based on each item's balance at period-end. For profit or loss items, interim cumulative balances are used as basis.
Note 4 : The sales price to the above related parties was determined through mutual agreement based on the market conditions.

108

Attachment 7: Names, locations, main businesses and products, original investment amount, investment as of 30 June 2024, net income (loss) of investee company and investment income (loss) recognized for the six-month period ended 30 June 2024: (Excluding investment in Mainland China)

Investor	Investee company (Note1)	Address	Main businesses and products	Initial Investment	Initial Investment	Investment as of 30 June 2	Investment as of 30 June 2	024	Net income (loss) of investee company	Investment income (loss) recognized	Note
				Ending balance	Beginning balance	Number of shares	Percentage of ownership (%)	Book value			(Note 1 )
The Company	HKSB	Hong Kong	Selling a wide variety of connectors, wires and cables	HKD 95,606,000	HKD 95,606,000	-	100.00%	$1,089,634	$601,459	$601,459	Subsidiary
				$401,262	$401,262
The Company	Kwan-Ze	New Taipei City, Taiwan	Selling a wide variety of electronic materials and holding company	$235,600	$235,600	25,200,000 shares	100.00%	$830,206	$77,877	$77,877	Subsidiary
The Company	SB BVI	British Virgin Islands	Holding company	USD 45,021,000	USD 45,021,000	-	100.00%	$7,525,096	$464,593	$562,001	Subsidiary
				$1,461,158	$1,461,158
The Company	SINTOP	New Taipei City, Taiwan	Renewable energy investment management consulting business	$6,804	$6,804	680,400 shares	53.57%	$13,581	$4,546	$2,435	Subsidiary
The Company	Argosy Technologies Co., Ltd.	Hsinchu City, Taiwan	Produce and sells a variety of electronic components, computers and peripheral equipment	$49,452	$51,768	3,032,598 shares	3.37%	$142,406	$420,241	$14,450	Investee under the equity method
The Company	SINBON USA LLC	OHIO, USA	Logistic center	USD 14,479,000	USD 11,979,000	-	100.00%	$164,463	$(97,613)	$(97,475)	Subsidiary
				$448,502	$368,527
The Company	SINBON Europe GmbH	Pfarrkirchen, Germany	Logistic center	EUR 5,209,000	EUR 5,209,000	-	100.00%	$10,092	$652	$652	Subsidiary
				$185,241	$185,241
The Company	Radbon Electronics Co., Ltd.	Miaoli County, Taiwan	Manufacturing and selling a wide variety of connectors, wires and cables	$176,000	$176,000	36,600,000 shares	100.00%	$543,981	$98,724	$98,724	Subsidiary
The Company	T-CONN Precision	New Taipei City, Taiwan	Manufacturing and selling a wide variety of connectors, wires and cables	$288,098	$288,098	28,063,688 shares	56.15%	$203,160	$(1,556)	$(5,223)	Subsidiary
The Company	SB Hungary	Komárom-Esztergom megye, Hungary	Manufacturing and selling a wide variety of connectors, wires and cables	EUR 15,264,000	EUR 14,264,000	-	100.00%	$100,812	$(24,258)	$(27,448)	Subsidiary
				$523,342	$488,349
The Company	SB Mexico	San Luis Potosí, Mexico	Manufacturing and trading of electronic components	USD 8,118,000	USD 4,158,000	-	99.00%	$247,480	$2,732	$2,732	Subsidiary
				$263,249	$133,892
BJSB TongAn	TWEM	Miaoli County, Taiwan	Manufacturing and selling a wide variety of connectors, wires and cables	RMB 10,405,000	RMB 10,405,000	-	100.00%	RMB 15,062,000	RMB 413,000	$ -	Sub-subsidiary
				$45,000	$45,000			$67,269	$1,827
SINBON USA L.L.C	SB Ohio	OHIO, USA	Manufacturing and selling a wide variety of connectors, wires and cables	USD 10,174,000	USD 9,174,000	-	100.00%	USD 3,475,000	USD (885,000)	$ -	Sub-subsidiary
								$112,767	$(28,224)

109

Investor	Investee company (Note1)	Address	Main businesses and products	Initial Investment	Initial Investment	Investment as of 30 June 20	Investment as of 30 June 20	24	Net income (loss) of investee company	Investment income (loss) recognized	Note
				Ending balance	Beginning balance	Number of shares	Percentage of ownership (%)	Book value			(Note 1 )
SINBON USA L.L.C	Worldwide Wire Harnesses Co., Ltd.	Samoa	Logistic center.	USD 75,000	USD 75,000	-	50.00%	USD 172,000	USD 12,000	$ -	Sub-subsidiary
								$5,590	$368
Kwan-Ze	Argosy Research Inc.	Hsinchu City, Taiwan	Produce and sells a variety of electronic components, computers and peripheral equipment	$197,969	$197,969	14,771,152 shares	16.39%	$670,635	$420,241	$ -	Investee under the equity method
Kwan-Ze	SB Mexico	San Luis Potosí, Mexico	Manufacturing and trading of electronic components.	USD 82,000	USD 42,000	-	1.00%	$2,657	$2,732	$ -	Subsidiary
				$2,657	$1,353
Worldwide Wire Harnesses Co., Ltd.	STT	U.S.A Tennessee	Logistic center.	USD 140,000	USD 140,000	-	100.00%	USD 94,000	USD 12,000	$ -	Third-tier subsidiary
				$4,542	$4,542			$3,065	$368
Argosy Research Inc.	Argosy Technology Inc.(USA)	12731 RAMONA BLVD,#205 BALDWIN PARK, CA 91706	Sell Multimedia related products, ODM and OED	$30,347	$30,347	-	100.00%	$ -	$ -	$ -	Investee under the equity method
Argosy Research Inc.	Argosy International B.V.	De Binderij 72 1321 EK Almere The Netherlands	Leasing operations and sell ODM and OED	$22,314	$22,314	-	100.00%	$16,908	$124	$ -	Investee under the equity method
Argosy Research Inc.	Global Saber Electronics Co., Ltd.	Mauritius	Selling a wide variety of connectors and cables	$ -	$ -	-	100.00%	$94,619	$(10,438)	$ -	Investee under the equity method
Argosy Research Inc.	ARGOSY Technology (VIETNAM) Co., Ltd.	Hưng Yên province, Vietnam	Selling a wide variety of connectors and cables	$158,767	$62,041	-	100.00%	$149,988	$(4,456)	$ -	Investee under the equity method
Argosy Research Inc.	ROTEC LIMITED	British Virgin Islands	Holding company	$543,588	$543,588	-	88.04%	$969,001	$12,278	$ -	Investee under the equity method
Global Saber Electronics Co., Ltd	ROTEC LIMITED	British Virgin Islands	Holding company	$72,918	$72,918	-	11.96%	$131,636	$1,468	$ -	Investee under the equity method

Note 1: The share of profits/losses of investee includes the effect of unrealized gross profit on intercompany transactions.

110

Attachment 8: Investment in Mainland China

Attachment 8: Investment	in Mainland China
Investee company	Main Businesses and Products	Total Amount of Paid-in Capital	Method of Investment	Accumulated Outflow of Investment from Taiwan as of 1 January 2024	Investment Flows		Accumulated Outflow of Investment from Taiwan as of 30 June 2024	Net income (loss) of investee company	Percentage of Ownership	Investment income (loss) recognized (Note 1)	Carrying Value as of 30 June 2024	Accumulated Inward Remittance of Earnings as of 30 June 2024
					Outflow	Inflow
BJSB	Manufacturing and selling a wide variety of connectors, wires and cables	RMB 12,830,000	Directly investment in Mainland China.	USD 1,020,000 $30,719	$ -	$ -	USD 1,020,000 $30,719	RMB 214,000 $948	100.00%	RMB 214,000 $948	RMB 33,280,000 $148,632	USD 11,030,000 $351,623
JYSB	Manufacturing and selling a wide variety of connectors, wires and cables	USD 37,780,000	Indirectly investment in Mainland China through companies registered in a third region.	USD 22,050,000 $705,108	$ -	$ -	USD 22,050,000 $705,108	USD 10,145,000 $323,628	100.00%	USD 10,145,000 $323,628	USD 176,109,000 $5,714,752	USD 47,623,000 $1,439,773
SHSB	Selling a wide variety of connectors, wires and cables	USD 3,280,000	Indirectly investment in Mainland China through companies registered in a third region.	USD 1,700,000 $55,358	$ -	$ -	USD 1,700,000 $55,358	USD 363,000 $11,593	100.00%	USD 363,000 $11,593	USD 8,815,000 $286,031	USD 2,887,000 $87,821
SZSB	Selling a wide variety of connectors, wires and cables	USD 2,810,000	Indirectly investment in Mainland China through companies registered in a third region.	USD 2,750,000 $83,385	$ -	$ -	USD 2,750,000 $83,385	USD 66,000 $2,090	100.00%	USD 66,000 $2,090	USD 8,161,000 $264,819	RMB 46,400,000 $193,002
TCSB	Manufacturing and selling a wide variety of connectors, wires and cables	USD 17,000,000	Indirectly investment in Mainland China through companies registered in a third region.	USD 8,000,000 $248,003	$ -	$ -	USD 8,000,000 $248,003	USD 3,990,000 $127,272	100.00%	USD 3,990,000 $127,272	USD 41,333,000 $1,341,262	USD 196,000 $5,890
T-CONN Zhongshan	Manufacturing and selling a wide variety of connectors, wires and cables	USD 9,300,000	Directly investment in Mainland China	USD 3,686,000 $117,529	$ -	$ -	USD 3,686,000 $117,529	$(606)	56.15%	$(340)	$317,429	$65,441
BJSB TongAn	Manufacturing and selling a wide variety of connectors, wires and cables	RMB 130,100,000	Directly investment in Mainland China	USD 3,000,000 $89,134	$ -	$ -	USD 3,000,000 $89,134	$135,042	100.00%	$137,335	$2,298,167	$1,264,302
Argosy (Beijing) Technologies Co., Ltd.	Selling a wide variety of connectors, wires and cables	RMB 5,000,000	Indirectly investment in Mainland China through companies registered in a third region.	USD 76,000 $2,466	$ -	$ -	USD 76,000 $2,466	$ -	12.00%	$ -	$ -	$ -
China Digital Library Corp.Ltd.	Technology development of computer software, transfer of technology, advisory service	RMB 88,600,000	Indirectly investment in Mainland China through companies registered in a third region.	USD 750,000 $24,338	$ -	$ -	USD 750,000 $24,338	$ -	4.85%	$ -	$ -	$ -

111

Attachment 8: Investment in Mainland China

Attachment 8: Investment	in Mainland China
Investee company	Main Businesses and Products	Total Amount of Paid-in Capital	Method of Investment	Accumulated Outflow of Investment from Taiwan as of 1 January 2024	Investment Flows		Accumulated Outflow of Investment from Taiwan as of 30 June 2024	Net income (loss) of investee company	Percentage of Ownership	Investment income (loss) recognized (Note 1)	Carrying Value as of 30 June 2024	Accumulated Inward Remittance of Earnings as of 30 June 2024
					Outflow	Inflow
Wu Xi S&D	Manufacturing and selling new flat panel displays	USD 4,000,000	Indirectly investment in Mainland China through companies registered in a third region.	USD 1,900,000 $61,823	$ -	$ -	USD 1,900,000 $61,823	$ -	-	$ -	$ -	$ -
Ning Bo Smart and Diligent Co., Ltd.	Manufacturing and selling a new Flat Panel Display	USD 2,000,000	Indirectly investment in Mainland China through companies registered in a third region.	USD 1,140,000 $37,025	$ -	$ -	USD 1,140,000 $37,025	$ -	-	$ -	$ -	$ -
JY Sinact	Manufacturing and selling a wide variety of electronic materials	USD 9,500,000	Indirectly investment in Mainland China through companies registered in a third region.	USD 5,266,000 $164,599	$ -	$ -	USD 5,266,000 $164,599	$ -	-	$ -	$ -	$ -
Shang Hai Comtek Electronics Trading Co., ltd.	Selling a wide variety of electronic materials	USD 160,000	Indirectly investment in Mainland China through companies registered in a third region.	USD 104,000 $3,302	$ -	$ -	USD 104,000 $3,302	$ -	-	$ -	$ -	$ -
Dong Guan CMK	Manufacturing and selling a wide variety of connectors, wires and cables	USD 1,000,000	Indirectly investment in Mainland China through companies registered in a third region.	USD 645,000 $20,768	$ -	$ -	USD 645,000 $20,768	$ -	-	$ -	$ -	$ -
					N/A(Note 2) Upper Limit on Investment
Accumulated Investment in Mainland China as of 30 June 2024			Investment Amounts Authorized by Investment Commission, MOEA		Upper Limit on Investment
USD 52,087,000			USD 56,420,000		N/A(Note 2)

Note 1: The investment income (loss) recognized in current period, the investment income (loss) were determined based on the following basis:
（1）The financial statements were reviewed by an international certified public accounting firm in cooperation with an R.O.C. accounting firm.
（2）The financial statements were reviewed by the auditors of the parent company.
（ 3 ） Others
Note 2: According to Order No. Jing-Shen-Zi-09704604680 issued by Ministry of Economic Affairs, R.O.C., the Company's investment in Mainland China is not limited to 60% of net worth or consolidated net worth specified by the Investment Commission.

112

AI assistant

SINBON Electronics — Interim / Quarterly Report 2024

52256_rns_2024-11-28_055e343c-7141-4136-a257-da998fef1117.pdf

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS WITH REVIEW REPORT OF INDEPENDENT AUDITORS

FOR THE SIX-MONTH PERIODS ENDED 30 JUNE 2024 AND 2023

安永聯合會計師事務所

Independent Auditors’ Review Report

Introduction

Scope of Review

Basis for Qualified Conclusion

Qualified Conclusion

Notice to Readers

English Translation of Consolidated Financial Statements Originally Issued in Chinese SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

30 June 2024, 31 December 2023 and 30 June 2023

English Translation of Consolidated Financial Statements Originally Issued in Chinese SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Continued) 30 June 2024, 31 December 2023 and 30 June 2023

English Translation of Consolidated Financial Statements Originally Issued in Chinese

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

English Translation of Consolidated Financial Statements Originally Issued in Chinese

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

English Translation of Consolidated Financial Statements Originally Issued in Chinese SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)

1. History and organization

2. Date and procedures of authorization of financial statements for issue

3. Newly issued or revised standards and interpretations

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

(b) IFRS 17 “Insurance Contracts”

4. Summary of material accounting policies

(1) Statement of Compliance

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Financial assets measured at amortized cost

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Financial asset measured at fair value through profit or loss

(b) Impairment of financial assets

Classification between liabilities or equity

Equity instruments

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

Compound instruments

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

Financial liabilities

Financial liabilities at fair value through profit or loss

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

Financial liabilities at amortized cost

Derecognition of financial liabilities

(e) Offsetting of financial instruments

(9) Derivative instrument

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

(10) Fair value measurement

(11) Inventories

(12) Investments accounted for using the equity method

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

(13) Property, plant and equipment

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

Group as a lessee

Group as a lessor

(15) Intangible assets

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

(16) Impairment of non-financial assets

(17) Provisions

Provision for decommissioning, restoration and rehabilitation costs

Provision for warranties

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

(18) Revenue recognition

Sale of goods

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

Rendering of services

Construction revenues

(19) Borrowing costs

(20) Government grants

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

(21) Post-employment benefits

SINBON ELECTRONICS CO., LTD. AND SUBSIDIARIES

SINBON Electronics Interim / Quarterly Report 2024