Stock Code: 2484

SIWARD Crystal Technology Co., Ltd.

Parent Company Only Financial Statements for the Years Ended December 31, 2023 and 2022 and Independent Auditors’ Report

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.

Independent Auditor’s Report Translated from Chinese

To SIWARD Crystal Technology Co., Ltd.:

Opinion

We have audited the accompanying parent company only financial statements of SIWARD Crystal Technology Co., Ltd. (the “Company”), which comprise the parent company only balance sheets as of December 31, 2023 and 2022, and related parent company only statements of comprehensive income, changes in equity, cash flows, and notes to parent company only financial statements (including summary of significant accounting policies) for the years ended December 31, 2023 and 2022. The independent auditor has completed the audits of these statements.

In our opinion, the parent company only financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2023 and 2022, and its financial performance and cash flows for the years ended December 31, 2023 and 2022, in conformity with the requirements of the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and auditing standards generally accepted in the Republic of China. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Parent Company Only Financial Statements section of our report. We are independent of the Company in accordance with The Norm of the Professional Ethics for Certified Public Accountant of the Republic of China (the “Norm”), and we have fulfilled our other ethical responsibilities in accordance with the Norm. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the parent company only financial statements of the Company for the year ended December 31, 2023. These matters were addressed in the context of our audit of the parent company only financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Impairment of accounts receivable

As of December 31, 2023, the carrying amounts of the accounts receivable and loss allowance of the Company were NT$570,923 thousand and NT$16,620 thousand, respectively. The net accounts receivable account for 11% of the total assets, which have significant influence over the Company.

Because the amount of loss allowance for accounts receivable is measured by the expected credit losses during the duration, the accounts receivable should be classified into groups in the measurement process, and appropriate age ranges and the loss rates for each age range, and their forward-looking information should be determined. These activities involve management

judgments or assumptions and the measurement result affects the net accounts receivable; therefore, we have identified the Impairment of accounts receivable as a key audit matter.

The audit procedures that we performed include (but not limited to) the evaluation on the effectiveness of the internal controls established by the management for accounts receivable, including the control of credit limits, the analysis on the trend of changes in accounts receivable and turnover ratio and tests in the subsequent collection of accounts receivable to assess the recoverability, the test in the readiness matrix they employ, including the assessment of whether each group of age ranges is reasonably determined and the spot check on original documents and confirm for their correctness, and recalculation of lifetime expected credit losses.

We also consider the appropriateness of accounts receivable and related risk disclosures in Notes IV、V and VI to the parent company only financial statements.

Inventory valuation

As of December 31, 2023, the carrying amounts of inventories of the Company were NT$902,199 thousand, with net inventories accounting for 18% of the total assets, which have significant influence over the Company and the end application of products is in the rapidly changing industry, resulting in the losses of slow-moving or obsolete inventories. Therefore, the allowance to reduce inventory to market and valuation of slow-moving inventories involve management judgments or assumptions, and thus we have judged inventory valuation as a key audit matter.

The audit procedures that we performed include, but not limited to, understanding and testing the effectiveness of the internal controls established by the management for inventories, including the evaluation procedures for the identification of obsolete or defective inventories; the evaluation on the management’s stocktaking plan and on-site observation of inventory counting to verify the quantity and status of inventory; selection of samples to test the correctness and completeness of inventory age; selection of samples to re-calculating the unit cost of inventories; and evaluating net realizable value adopted by management.

We also consider the appropriateness of inventory related disclosures in Notes IV、V and VI to the parent company only financial statements.

Responsibilities of Management and Those Charged with Governance for the Parent Company Only Financial Statements

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

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

Those charged with governance (including the audit committee) are responsible for overseeing the financial reporting process of the Company.

Auditors’ Responsibilities for the Audit of the Parent Company Only Financial Statements

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

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

Identify and assess the risks of material misstatement of the parent company only financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of internal control of the Company.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability to continue as a going concern of the Company. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the parent company only financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the parent company only financial statements, including the disclosures, and whether the parent company only financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the parent company only financial statements. We are responsible for the direction, supervision and performance of the audit of the Company. We remain solely responsible for our audit opinion.

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

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the parent company only financial statements of the Company for the year ended December 31, 2023 and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partners on the audits resulting in this independent auditors’ report are Tu, Chin-Yuan and Huang, Yu-Ting.

Ernst & Young Taiwan

February 29, 2024

Notice to Readers

The accompanying parent company only financial statements are intended only to present the financial position, financial performance 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 audit such parent company only financial statements are those generally applied in the Republic of China.

For the convenience of readers, the independent auditors’ report and the accompanying consolidated financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language independent auditors’ report and financial statements shall prevail.

SIWARD Crystal Technology Co., Ltd.

PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2023 AND 2022

(In Thousands of New Taiwan Dollars)

2023	2022
Amount $843,156 524,016 30,287 902,199 10,393 2,310,051 678,696 579,274 1,376,123 30,876 47,322 48,079 41,763 19,141 2,821,274 $5,131,325 $8,160 2,130 81,596 66,416 195,769 87,124 8,143 4,437 215,040 668,815 161,280 141,699 23,768 46,182 6,349 379,278 1,048,093 1,594,210 802,473 290,911 1,103,367 (124,035) 416,306 4,083,232 $5,131,325	Amount $1,193,318 510,558 61,697 907,180 11,445 2,684,198 562,334 583,965 1,494,533 38,934 48,694 56,373 34,107 40,510 2,859,450 $5,543,648 $17,917 2,518 51,419 89,945 250,876 117,092 8,027 2,576 177,680 718,050 526,320 115,397 31,912 55,522 55 729,206 1,447,256 1,594,210 802,473 212,637 1,268,703 (104,848) 323,217 4,096,392 $5,543,648	`％` 22 9 1 16 -
		48
		10 10 27 1 1 1 1 1
		52

		100
		- - 1 2 5 2 - - 3
		13
		9 2 1 1 -
		13
		26
		29 14 4 23 (2) 6
		74

		100

(The accompanying notes are an integral part of the parent company only financial statements)

SIWARD Crystal Technology Co., Ltd.

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022

(In Thousands of New Taiwan Dollars, Except Earnings Per Share)

REVENUE (Note IV and VI.13) COST OF GOODS SOLD (Note VI.16) GROSS PROFIT OPERATING EXPENSES (Note VI.16) Selling and marketing expenses General and administrative expenses Research and development expenses Expected credit loss reversed on trade receivables (Note VI.14) Total operating expenses PROFIT FROM OPERATIONS NON-OPERATING INCOME AND EXPENSES (Note IV and VI.17) Interest income Other income Other gains and losses Finance costs Share of profits of associates and joint ventures (Note VI.5) Total non-operating income and expenses PROFIT BEFORE INCOME TAX INCOME TAX EXPENSE (Note IV and VI.19) NET PROFIT FOR THE YEAR OTHER COMPREHENSIVE INCOME (LOSS) Item that will not be reclassified subsequently to profit or loss: Gains (losses) on remeasurements of defined benefit plans Unrealised gains (losses) from investments in equity instruments measured at fair value through other comprehensive income Share of other comprehensive income of associates and joint ventures accounted for using equity method Income tax related to components of other comprehensive income that will not be reclassified to profit or loss Item that maybe reclassified subsequently to profit or loss: Exchange differences on translation Share of other comprehensive income of associates and joint ventures accounted for using equity method Income tax related to components of other comprehensive income Other comprehensive income, net (Note VI.18) Total comprehensive income Earnings per share (Note IV and VI.20) Basic earnings per share Diluted earnings per share	2023	％ 100 (74) 26 (4) (5) (4) - (13) 13 1 1 - - 1 3 16 (4) 12 - 5 - (1) (1) - - 3 15	2022
	Amount $2,191,702 (1,619,244) 572,458 (91,372) (112,707) (92,485) - (296,564) 275,894 16,578 21,643 6,991 (11,043) 32,234 66,403 342,297 (81,309) 260,988 3,700 116,025 53 (24,013) (23,945) (21) 4,779 76,578 $337,566 $1.64 $1.63		Amount $3,045,329 (1,863,827) 1,181,502 (105,430) (160,291) (96,848) (26,034) (388,603) 792,899 6,073 19,883 141,874 (10,846) 30,050 187,034 979,933 (211,657) 768,276 17,895 (545,980) 144 105,617 (10,165) (29) 2,050 (430,468) $337,808 $4.82 $4.77	％ 100 (61) 39 (3) (6) (3) (1) (13) 26 - 1 4 - 1 6 32 (7) 25 1 (18) - 3 - - - (14) 11

(The accompanying notes are an integral part of the parent company only financial statements)

SIWARD Crystal Technology Co., Ltd.

PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022

(In Thousands of New Taiwan Dollars)

Capital surplus	Retained earnings	Retained earnings	Other Exchange differences on translation of foreign financial statements Unrealised gains (losses) on financial assets measured at fair value through other comprehensive income	Other Exchange differences on translation of foreign financial statements Unrealised gains (losses) on financial assets measured at fair value through other comprehensive income	Total equity
	Legal reserve	Unappropriated retained earnings	Exchange differences on translation of foreign financial statements
$802,473 $802,473 $802,473 $802,473	$164,010 48,627 $212,637 $212,637 78,274 $290,911	$773,725 (48,627) (239,131) 768,276 14,460	$(96,704) (8,144) (8,144) $(104,848) $(104,848) (19,187) (19,187) $(124,035)	$760,001 (436,784) (436,784) $323,217 $323,217 92,752 92,752 337 $416,306	$3,997,715 - (239,131) 768,276 (430,468) 337,808 $4,096,392 $4,096,392 - (350,726) 260,988 76,578 337,566 - $4,083,232
		782,736

		$1,268,703
		$1,268,703 (78,274) (350,726) 260,988 3,013
		264,001
		(337)
		$1,103,367

(The accompanying notes are an integral part of the parent company only financial statements)

SIWARD Crystal Technology Co., Ltd.

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS DECEMBER 31, 2023 AND 2022

(In Thousands of New Taiwan Dollars)

Cash flows from (used in) operating activities Profit (loss) before tax Adjustments for： Depreciation expense Amortization expense Expected credit loss recognized on trade receivalbes Interest expense Interest income Share of profit of associates and joint ventures accounted Dividend income Loss (gain) on disposal of property, plan and equipment Loss (gain) on disposal of investments Write-down of inventories Changes in operating assets and liabilities Decrease in notes receivable Decrease (increase) in accounts receivable Decrease (increase) in accounts receivable due from related parties Iincrease in inventories Decrease (increase) in other current assets Increase (decrease) in contract liabilities Increase (decrease) in notes payable Decrease in accounts payable Increase (decrease) in accounts payable to related parties Increase in other payable Increase (decrease) in other current liabilities Decrease in net defined benefit liability Cash inflow generated from operations Interest received Dividends received Interest paid Income taxes paid Net cash flows from operating activities	2023 $342,297 200,043 15,917 - 11,043 (16,578) (32,234) (8,199) (174) - 9,312 - (13,458) 31,410 (4,331) 1,052 (3,463) (388) 30,177 (23,529) (52,442) 1,861 (5,610) 482,706 16,578 20,874 (11,133) (111,865) 397,160	2022
		$979,933 206,322 14,884 26,034 10,846 (6,073) (30,050) (202) 361 - 409 1,117 145,621 35,473 (114,333) 4,392 (9,455) 1,775 (65,113) 28,650 40,784 2,344 (7,468)
		1,266,251
		6,073 8,844 (10,696) (204,794)
		1,065,678

(Continued)

SIWARD Crystal Technology Co., Ltd.

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS DECEMBER 31, 2023 AND 2022

(In Thousands of New Taiwan Dollars)

Cash flows from (used in) investing activities： Proceeds from disposal of financial assets at amortised cost Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Acquisition of intangible assets Decrease in other non-current assets Net cash used in investing activities Cash flows from (used in) financing activities： Proceeds from long-term borrowings Repayments of long-term borrowings Payments of lease liabilities Cash dividends paid Net cash used in financing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period	2023 - (55,989) 277 (5,163) 17 (60,858) - (327,680) (8,028) (350,726) (686,434) (350,132) 1,193,318 $843,186	2022
		86,812 (225,980) - (3,521) 13
		(142,676)
		32,260 (66,400) (7,912) (239,131)
		(281,183)
		641,819 551,499
		$1,193,318

(Concluded)

(The accompanying notes are an integral part of the parent company only financial statements)

SIWARD Crystal Technology Co., Ltd.

Notes to the Parent Company Only Financial Statements

For the Years Ended December 31, 2023 and 2022 (Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

I. Company history

SIWARD Crystal Technology Co., Ltd. (hereinafter referred to as the “Company”) was founded in January 1988, mainly engaged in manufacturing, processing, and sales of quartz crystal oscillators and filters. In June 1997, the Company completed the supplemental public issuance procedure in order to meet the diversified needs of future financing channels with the approval of the securities regulatory authority.

In March 2000, the Company invested in SIWARD TECHNOLOGY CO., LTD. (Yamagata, Japan) in order to obtain high-end quartz product technology and enter the Japanese quartz market.

The shares of the Company were listed on Taipei Exchange on December 4, 1999. In June 2001, the Company made the application for the shares to be listed and traded on the Taiwan Stock Exchange, which were approved to be officially listed on September 17, 2001. The main operating location is No. 11-1, Ln. 111, Sec. 3, Zhongshan Rd., Tanzi Dist., Taichung City.

In order to reduce operating costs and improve business performance and competitiveness, on June 3, 2019, the Company conducted a short-form merger in accordance with Article 19 of the Business Mergers and Acquisitions Act and other laws and regulations with Wafer Mems Co., Ltd. (hereinafter referred to as “Wafer”), in which the Company held 100% of shares. The Company was the surviving company after the merger and generally assume all rights and obligations of Wafer.

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

The financial reports of the Company for the years ended December 31, 2023 and 2022 were authorized for issue by the Board of Directors on February 29, 2024.

III. Newly issued or revised standards or interpretations

Changes in accounting policies resulting from applying for the first time certain standards and amendments

The Company applied for the first time International Financial Reporting

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SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements

(Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

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 January 1, 2023. The adoption of these new standards and amendments had no material impact on the Company.

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

Item No.	Newly issued/revised/amended standards and interpretations	Effective date Issued byIASB
1	Classification of liabilities as current or non-current (amendments to IAS 1)	January 1, 2024
2	Lease Liability in a Sale and Leaseback (amendments to IFRS 16)	January 1, 2024
3	Non-current liabilities with Covenants(amendments to IAS 1)	January1,2024
4	Supplier Finance Arrangements (amendments to IAS 7 and IFRS 7)	January 1, 2024

(1) Classification of liabilities as Current or Non-current (amendments to IAS 1)

These are the amendment to paragraphs 69 and 76 of IAS 1 “Presentation of Financial Statements” and the amended paragraghs related to classification of liabilities as current or non-current.

(2) Lease liabilities in a Sale and leaseback (amendments to IFRS 16)

The amendments add seller-lessees additional requirements for the sale and leaseback transactions in IFRS 16, thereby supporting the consistent application of the standard.

(3) Non-current Liabilities with Covenants – amendments to IAS 1

The amendments improved the information companies provide about long-term debt with covenants. The amendments specify that covenants to be complied within twelve months after the reporting period do not affect the classification of debt as current or non-current at the end of the reporting period.

(4) Supplier Finance Arrangements (amendments to IAS 7 and IFRS 7)

The amendments introduced additional information of supplier finance arrangements and added disclosure requirements for such arrangements.

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SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements

(Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

The abovementioned standards and interpretations were issued by IASB and endorsed by FSC so that they are applicable for annual periods beginning on or after January 1, 2024. Apart from item explained below, the remaining standards and interpretations have no material impact on the Company.

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 Company as at the end of the reporting perion are listed below.

Item No.	Newly issued/revised/amended standards and interpretations	Effective date Issued byIASB
1	IFRS 10 “Consolidated Financial Statements” and amendments to IAS 28 “Investments in Associates and Joint Ventures” – Sale or Contribution of Assets between an Investor and its Associate or Joint Venture	To be determined by IASB
2	IFRS 17 “Insurance Contracts”	January1,2023
3	Lack of Exchangeability (amendments to IAS 21)	January1,2025

(1) 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 Venture

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 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 gain or loss recognition on the loss of control of a 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 IFRS3 between an investor and its associate or joint venture is recognized in full.

IFRS 10 was also amended go 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.

(2) 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

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SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements (Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

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 libility for remaining coverage and the liability for incurred claims.

Aside from the General Model, it also provides a specific adaptation for contracts with direct participation features (the Vriable Fee Approach) and simplified approach (Premium Allocation Approach) mainly for short-duration contracts.

IFRS 17 was issued in May 2017 and it was amended in 2020 and 2021. These amendments include deferral of the date of initial application of IFRS17 by two years to annual beginning on or after 1 January 2023 (from the original effective date of 1 January 2021); provide additional exemptions. Simplify some requirements to reduce the costs of applying IFRS 17 and revise some requirements to make the resulteasier to explain. IFRS 17 replaces an interim Standard -IFRS 4 Insurance Contracts- from annual reporting periods beginning on or after January 1, 2023.

(3) Lack of Exchangeability (amendments to IAS 21)

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 January 1, 2025.

The abovementioned standards and interpretations issued by the IASB have not yet endorsed by FSC at the date when the Company’s financial statements was authorized for issue, the local effective dates are to bedetermined by FSC. The new or amended standards and interpretations have no material impact on the Company.

IV. A summary of significant accounting policies

1. Statement of Compliance

The parent company only financial statements of the Company for the years ended December 31 , 2023 and 2022 have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers (“the Regulations”).

2. Basis of Preparation

The parent company only financial statements have been prepared on a

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SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements (Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

historical cost basis except for financial instruments measured at fair value. Amounts in the parent company only financial statements are expressed in thousands of New Taiwan dollars (“NT$”) unless otherwise stated.

3. Foreign Currency Transactions

The financial statements of the Company are presented in New Taiwan dollars, which is the Company’s functional currency.

Transactions in foreign currency of an entity in the company are recorded in the functional currency translated using the exchange rate on the day of the transaction. At the end of each reporting period, foreign currency monetary items are translated using the closing rate. Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was measured. Non-monetary items which are measured at historical cost in a foreign currency are translated using the exchange rate at the date of transaction.

Except as described below, exchange differences arising from settling or translating are recognized in profit or loss in the period in which they arise:

(1) For foreign currency borrowings incurred in order to acquire an asset that meets the requirements, if the resulting exchange differences are regarded as adjustments to interest costs, which are part of the borrowing costs and should be capitalized as the cost of the asset.
(2) Foreign currency items to which IFRS 9 “Financial Instruments” are applicable should be accounted for in accordance with the accounting policies for financial instruments.
(3) Exchange differences arising on monetary items that form part of the reporting entity’s net investment in a foreign operation are originally recognized in other comprehensive income; they will be 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 non-monetary item is recognized in profit or loss, any exchange component of that gain or loss is recognized in profit or loss.

4. Translation of Foreign Currency Financial Statements

Each entity in the Group determines its own functional currency and remeasures its financial statements into its functional currency. When preparing the parent company only financial statements, the assets and

1 4

SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements

(Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

liabilities of a foreign operation are translated using into New Taiwan dollars at the closing exchange rate at the balance sheet date and income and expenses are translated at average exchange rates. Foreign currency differences arising on translation are recognized in other comprehensive income, and on the disposal of a foreign operation, the cumulative amount of the foreign exchange differences accumulated in a separate component of equity under equity are reclassified from equity to gain or loss when profit or loss on disposal is recognized. Partial disposal involving the loss of control of a subsidiary that includes a foreign operation and partial disposal of equity interests in affiliated companies or joint agreements involving a foreign operation should be, if the retained equity interests are those that include financial assets of a foreign operating operation, accounted for as disposal.

In the case of a partial disposal of a subsidiary that includes a foreign operation without losing control, the accumulated exchange differences recognized in other comprehensive income are re-attributed proportionally to non-controlling interests of the foreign operation and not recognized in profit or loss. Without a loss of significant influence over an associate and jointly controlled entity, the accumulated exchange differences are reclassified proportionally to profit or loss on partial disposal of equity interests in affiliated companies or joint agreements involving a foreign operation.

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

Classification of Current and Non-current Assets and Liabilities

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

(1) Assets arising from operating activities that are expected to be realized, or are intended to be sold or consumed within its normal operating cycle;
(2) Assets held mainly for sales;
(3) Assets that are expected to be realized within twelve months from the reporting date;
(4) These assets are cash or cash equivalents, excluding restricted cash and cash equivalents and those that are to be exchanged or used to settle liabilities more than twelve months after the reporting date.

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

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SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements (Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

(1) Liabilities that are expected to be paid off within the normal operating cycle;
(2) Liabilities held mainly for sales;
(3) Liabilities that are expected to be paid off within twelve months from the reporting date;
(4) For liabilities their repayment date cannot be extended unconditionally to more than twelve months after the reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

6. Cash and Cash Equivalents

Cash and cash equivalents refer to cash on hand, demand deposits, and short-term, 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.

7. Financial Instruments

Financial assets and liabilities shall be recognized when the Group becomes a party to the contractual provisions of the instruments.

Financial assets and financial liabilities within the scope of IFRS 9 “Financial Instruments” are initially recognized at fair value. Transaction costs that are attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from, as the case may be, the fair value of such financial assets or liabilities on initial recognition.

(1) Recognition and Measurement of Financial Assets

The Company’s regular way purchases or sales financial assets are recognized and derecognized using trade date accounting.

The Company classifies financial assets as those subsequently measured at amortized cost and those at fair value through other comprehensive income or at fair value through profit or loss based on the following two conditions:

A. Business model by which financial assets are managed
B. Characteristics of cash flows of financial assets

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SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements (Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

Financial assets at amortized cost

Financial assets that meet the following two conditions at the same are measured at amortized cost and presented in the balance sheet as notes receivable, accounts receivable, financial assets measured at amortized cost, and other receivables:

A. The business model by which such financial assets are managed: Holding financial assets in order to collect contractual cash flows
B. Characteristics of cash flows of financial assets: Cash flows that are solely payments of principal and interest on the principal amount outstanding

These financial assets (excluding hedge accounting) are subsequently measured at amortized cost “the amount at which the financial asset or financial liability is measured at initial recognition minus 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 adjust loss allowance.” A gain or loss is recognized in profit or loss on derecognition or amortization or impairment.

Interest calculated using the effective interest method (by multiplying the carrying amount of a financial asset by the effective interest rate) or the following conditions is recognized in profit or loss:

A. In the case of purchased or originated credit-impaired financial assets, the interest is calculated by applying the effective interest rate to the amortized cost of the financial asset.
B. For those that are not the above but subsequently have become credit impaired, the interest is calculated by multiplying the effective interest rate by the amortized cost of the financial asset.

Financial assets at fair value through other comprehensive income

A financial asset shall be measured at fair value through other comprehensive income if both of the following conditions are met, and shall be presented in the balance sheet as financial assets at fair value through other comprehensive income:

A. The business model by which such financial assets are managed: to collect contractual cash flows and sell financial assets
B. Characteristics of cash flows of financial assets: Cash flows that are solely payments of principal and interest on the principal amount outstanding

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SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements (Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

The recognition of gains and losses related to such financial assets is described as follows:

A. Before derecognition or reclassification, except for impairment gains or losses and foreign exchange gains and losses that are recognized in profit or loss, the gain or loss is recognized in other comprehensive income.
B. On derecognition, the cumulative gain or loss recognized in other comprehensive income is reclassified from equity to profit or loss as a reclassification adjustment.
C. Interest calculated using the effective interest method (by multiplying the carrying amount of a financial asset by the effective interest rate) or the following conditions is recognized in profit or loss:
(a) In the case of purchased or originated credit-impaired financial assets, the interest is calculated by applying the effective interest rate to the amortized cost of the financial asset.
(b) For those that are not the above but subsequently have become credit impaired, the interest is calculated by multiplying the effective interest rate by the amortized cost of the financial asset.

In addition, for equity instruments 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 Business Combinations applies, at initial recognition, an election (irrevocable) may be made to present in other comprehensive income for subsequent changes in the fair value. Amounts presented in other comprehensive income shall not be subsequently transferred to profit or loss (on disposal of these equity instruments, the amount that has been accumulated in other equity shall be transferred to retained earnings) and presented in the balance sheet as financial assets at fair value through other comprehensive income. Dividends on investments are recognized as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of an investment.

Financial assets at fair value through profit or loss

Except for the above-mentioned that meets certain conditions and is measured at amortized cost or at fair value through other comprehensive income, financial assets are all measures at fair value through profit or loss and the financial assets at fair value through profit or loss are presented in the balance sheet.

Such financial assets are measured at fair value, and the gain or loss arising on remeasurement is recognized as profit or loss. The gain or

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SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements (Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

loss recognized in profit or loss includes any dividends or interest received from the financial asset.

(2) Impairment of Financial Assets

The Company recognizes the investments in debt instruments measured at fair value through other comprehensive income and the financial assets at amortized cost as expected credit losses and measures loss allowance. The loss allowance for investments in debt instruments measured at fair value through other comprehensive income is recognized as other comprehensive income without reducing the carrying amount of the investment.

The Company measures the expected credit losses in a way that reflects:

A. An unbIFRSed and probability-weighted amount that is determined by evaluating a range of possible outcomes
B. Time value of money
C. Reasonable and supportable information (information that is reasonably available at the reporting date without undue cost or effort) relating to past events, current conditions, and reasonable and supportable forecasts

The methods to measure the allowance loss are described as follows:

A. Measured at an amount equally to 12-months expected credit losses: including the financial asset on which the credit risk has not increased significantly since initial recognition or the financial asset that is determined to have low credit risk at the balance sheet date; also including the financial asset for which the loss allowance measured by the amount of lifetime expected credit losses in the previous reporting period but on the balance sheet date of the period, it no longer meets the condition that the financial asset on which the credit risk has increased significantly since initial recognition
B. Measured at an amount equally to lifetime expected credit losses: including the financial asset on which the credit risk has increased significantly since initial recognition or is a purchased and originated credit-impaired financial asset
C. For trade receivables or contract assets that result from transactions that are within the scope of IFRS 15, the Company measures the loss allowance at an amount equal to lifetime expected credit losses.
D. For lease receivables that result from transactions that are within the scope of IFRS 16, the Company measures the loss allowance at an amount equal to lifetime expected credit losses.

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SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements (Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

On each balance sheet date, the Company compares the risk of a default occurring on the financial instrument as at the reporting date with the risk of a default occurring on the financial instrument as at the date of initial recognition and assesses whether the credit risk on a financial instrument is increased significantly since initial recognition. For more information on credit risk, please refer to Note XII.

(3) Derecognition of Financial Assets

A financial asset held by the Company shall be derecognized when it meets one of the following conditions:

A. When the contractual rights to the cash flows from the financial asset expire;
B. The financial asset has been transferred and all the risks and rewards of ownership of the transferred asset have been transferred substantially to others;
C. All the risks and rewards of ownership of the financial asset have been neither transferred nor retained substantially but the control of the transferred asset has been transferred.
On derecognition of a financial asset in its entirety, the difference between the carrying amount and the consideration received or receivable plus any cumulative gain or loss recognized in other comprehensive income is recognized in profit or loss.
(4) Financial Liabilities and Equity Instruments

Classification of liabilities or equity

Liabilities and equity instruments issued by the Company are classified as financial liabilities or equity according to the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument.

Equity instrument

An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities. Equity instruments issued by the Company are recorded at the value of proceeds received, net of direct issue costs.

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SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements (Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

Compound instrument

The Company recognizes the components of financial liabilities and equity for the convertible corporate bonds it issues in accordance with the substance of the contractual arrangement. In addition, for the convertible corporate bonds it issues, it assesses whether the economic characteristics and risks of the embedded call/put option are clearly and closely related to the debt host before distinguishing equity elements.

For the liabilities not involving derivatives instruments, their fair values are assessed using the market interest rates of the bonds equivalent in nature and without conversion characteristics, and before conversion or redemption, the amount of this part is classified as a financial liability measured at amortized cost. Other embedded derivative instruments that are not clearly and closely related to the debt host (for example, the embedded repurchase and redemption rights are confirmed that the exercise price cannot be nearly equal to the amortized cost of the debt host on each exercise date) are classified as the liability components unless they are the equity components and in subsequent periods are measured at fair value through profit or loss. The amount of the equity element is determined by deducting the liability component from the fair value of convertible bonds and the carrying amount thereof will not be re-measured in subsequent periods. If the issued convertible bonds do not have an equity element, they should be accounted for as hybrid instruments under IFRS 9.

Transaction costs are apportioned between the liability and equity components in proportion to the originally recognized convertible bonds apportioned to the liability and equity components.

When the holder of the convertible bond requests to exercise the conversion right before the maturity of the convertible bond, the carrying amount of the liability component should be adjusted to the carrying amount at the time of conversion as the basis for accounting entry for the issuance of ordinary shares.

Financial liabilities

Financial liabilities within the scope of IFRS 9 are classified as financial liabilities at fair value through profit or loss or as financial liabilities at amortized cost on original recognition.

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SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements (Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities that are held for trading and financial liabilities designated at fair value through profit or loss

Financial liabilities are classified as “held for sale” if one of the following conditions is met:

A. It is acquired principally for the purpose of selling it in the near term;
B. On initial recognition, it is part of a portfolio of identified financial assets 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 or a designated and an effective hedging instrument.

For contracts containing one or more embedded derivative instruments, the entire hybrid contract may be designate as financial liabilities at fair value through profit or loss and designated at fair value through profit or loss when one of the following factors is met to provide more relevant information:

A. Such designation eliminates or significantly reduces measurement or recognition inconsistency; or
B. A group of financial assets or liabilities or both is managed, its performance is evaluated on a fair value basis in accordance with a documented risk management or investment strategy, and the portfolio information provided to the management within the consolidated company is also based on fair value.

Gains or losses resulting from the remeasurement of such financial liability are recognized in profit or loss. The gain or loss recognized in profit or loss includes any interest paid on the financial liability.

Financial liabilities at amortized cost

Financial liabilities measured at amortized cost include payables and loans received and are subsequently measured at the amortized cost using the effective interest method after initial recognition. When financial liabilities are derecognized and amortized using the effective interest method, the related gains or losses and amortization amounts are recognized in profit or loss.

The calculation of amortized cost takes into account the discount or premium on acquisition and transaction costs.

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SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements (Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

Derecognition of financial liabilities

Financial liabilities are derecognized when, and only when, the Company’s obligations are discharged, cancelled or expired.

When there is an exchange of debt instruments with substantially different terms or a substantial modification of the terms of an existing financial liability or a part of it (whether due to the financial difficulties) between the Company and a creditor, it should be treated as recognition of the original liability and the recognition of a new liability. When derecognizing financial liabilities, the difference between the carry amount of the financial liabilities derecognized and the consideration paid and payable (including any non-cash transferred or liabilities undertaken) is recognized in profit and loss.

(5) Offsetting Financial Assets and Financial Liabilities

A financial asset and financial liability can be offset when, and only when, there is a legally enforceable right to set-off and an intention to settle the asset and liability on a net basis or realize the asset and settle the liability simultaneously and the net amount is reported in the balance sheet.

8. Derivative Instruments

Derivative instruments held or issued by the Company are used to hedge against exchange rate risk and interest rate risk; among which, the designated and effective hedging instrument is presented in the balance sheet as hedging derivative assets or liabilities, and the rest that are not designated and effective hedging instrument are presented in the balance sheet as financial assets or financial liabilities at fair value through profit or loss.

Derivative instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently measured at fair value. A derivative with a positive fair value is recognized as a financial asset; a derivative with a negative fair value is recognized as a financial liability. Changes in the fair value of derivative instruments are directly recognized in profit or loss, but those involving hedging and being effective are recognized in profit or loss or equity according to the type of hedging.

If the host contract is not a financial asset, when the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract and the host contract is not measured at fair value through profit or loss, the embedded derivative instrument should be treated as an independent derivative instrument.

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SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements

(Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

Fair Value Measurement

Fair value refers to 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. A fair value measurement assumes that the transaction to sell the asset or transfer the liability takes place either:

(1) In the principal market for the asset or liability; or
(2) 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 Company.

The fair value of assets or liabilities is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act 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 Company 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.

10. Inventories

Inventory should value at lower of cost and net realizable value.

The cost of inventory includes all the costs necessary to bring the inventory to the location and condition ready for sale or production.

Materials – the actual cost of materials purchased using the weighted average method Work in process, – include direct raw materials, direct labor, and fixed semi-finished products, manufacturing overhead at normal capacity, but do not and finished products include borrowing costs

Net realizable value is the estimated selling price in the normal course of business less estimated costs to complete and estimated costs to make a sale.

The provision of labor is accounted for according to the requirements of IFRS 15 and is not included in the scope of inventories.

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SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements

(Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

11. Investments Accounted for Using the Equity Method

According to Article 21 of the Regulation, the Company’s investment in subsidiaries was presented as “Investments accounted for using equity method” and made necessary adjustments. The profit or loss during the period and other comprehensive income presented in the parent company only financial statements shall be the same as the allocations of profit or loss during the period and of other comprehensive income attributable to shareholders of the parent presented in the financial statements prepared on a consolidated basis, and the shareholders’ equity presented in the parent company only financial statements shall be the same as the equity attributable to shareholders of the parent presented in the financial statements prepared on a consolidated basis. The adjustment was considered the difference between investment in subsidiaries in consolidated financial statements according to IFRS 10 “ Consolidated financial statements” and application of IFRS to different reporting entities, debit/credit “Investment accounted for using equity method”, “ Share of profit or loss of subsidiaries, associates and joint ventures” or “Share of other comprehensive profit or loss of subsidiaries, associates and joint ventures” etc.

The Company’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 olver which the Company has significant influence. Joint venture means the Company has rights to the net assets of the joint agreement (with joint controller).

Under the equity method, the investments in associates are accounted for in the balance sheet the cost plus the amount recognized by the Company according to the shareholding ratio of the change in the net assets of the associates or joint venture after the acquisition. After the carrying amount of the investment in the associate and other related long-term interests are reduced to zero, additional loss and relevant liability will be recognized only to the extent of the legal obligation, presumed obligation, or payments on behalf of the associate. The unrealized gains or losses resulting from transactions between the Company and its associates are eliminated in proportion to its interests in associates.

When changes in the interests in associates are not attributable to profit or loss and other comprehensive income and do not affect the Company’s shareholding ratio, the Company recognizes the changes in relevant ownership interests in proportion to its shareholding ratio. The additional paid-in capital therefore recognized will be transferred to profit and loss according to the proportion of disposal.

When an associate issues new stock, the Company does not subscribe according to the shareholding ratio, resulting in changes in the investment ratio, which causes an increasing or decrease in the Company’s share of the

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SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements (Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

net assets of the associate or joint venture, the increase or decrease is adjusted by “additional paid-in capital” and “Investment accounted for using the equity method.” When the change in the investment ratio is a decrease, the related items previously recognized in other comprehensive income should be reclassified to profit or loss or other appropriate accounts according to the decrease ratio. The additional paid-in capital recognized as mentioned above should be transferred to profit or loss according to the proportion of disposal in the subsequent disposal of associates.

The financial statements of the associates are prepared for the same reporting periods and adjusted where necessary to bring their accounting policies in line with those used by the Company.

At the end of each reporting period the Company determines whether there is any objective evidence that the investment in its the associate or joint venture is impaired according to the requirements of IAS 28 “Investments in Associates and Joint Ventures.” If there is objective evidence that an impairment loss has been incurred, the amount of the loss is measured as the difference between the recoverable amount and the carrying amount of the investment in its the associate or joint venture and the amount is recognized in the profit or loss of the associate or joint venture according to the requirements of IAS 36 “Impairment of Assets.” If the above-mentioned recoverable amount is the value in use, the Company shall determine the relevant value in use based on the following estimates:

(1) The Company’s share of the present value of the estimated future cash flows generated from the associate or joint venture, including the cash flows from the operations of the associate or joint venture and the proceeds received from ultimate disposal of the investment; or
(2) The present value of the estimated future cash flows that the Company expects to generate from the dividends received from the investment and the ultimate disposal of the investment.

The goodwill component included in the carrying amount of the investment in the investment in its the associate is not recognized separately; therefore, it is not necessary to apply the requirements of the goodwill impairment test of IAS 36 “Impairment of Assets.”

Upon loss of significant influence over the associate or joint venture, the Company 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

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SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements (Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

remeasure the retained interest.

12. Property, Plant and Equipment

Property, plant and equipment is recognized on the basis of the acquisition cost and presented after deducting any accumulated depreciation and accumulated impairment losses. The above-mentioned costs include the costs of dismantling and removing the item of property, plant and equipment items and the site on which it is located and necessary interest expenses arising from construction in progress. When each component of an item of property, plant and equipment is significant must be depreciated separately. When significant components of an item of property plant and equipment must be replaced periodically, the Company treats the item as an individual asset and recognizes separately with specific useful life and depreciation method. The carrying amount of the replaced part is derecognized under the derecognition requirements of IAS 16 “Property, Plant and Equipment” if the overhaul cost meets the recognition criteria, it is regarded as the replacement cost and recognized in the carrying amount of the property plant and equipment, and other repair and maintenance costs are recognized in profit or loss.

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

seful lives of assets:
Fixed asset Buildings Machinery equipment Transportation equipment Office equipment Leasehold improvements Other equipment	Useful life
	3–52 years 3–10 years 5–7 years 3–10 years The lease term or the useful life of the asset whichever is shorter 2–22 years

Any item or any significant component of property, plant and equipment that is disposed of after initial recognition or is not expected that there will be an inflow of economic benefits from use or disposal should be derecognized and 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. If the expected value is different from the previous estimate, the difference should be accounted for as a change in an accounting estimate.

13. Investment Properties

The investment properties owned by the Company are measured initially at

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SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements

(Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

cost including the transaction costs paid to acquire the asset. The carrying amount of the investment property includes, under the conditions that the costs can be recognized, the costs incurred in repairing or adding existing investment properties; however, the maintenance costs generally incurred on a daily basis are not considered as part of the costs. After its original recognition, except those that meet the criteria to be classified as held for sale (or included in the disposal group held for sale) in accordance with IFRS 5 “Non-current Assets Held for Sale and Discontinued Operations,” an investment property is measured using the cost model and is accounted for according to the requirements of such model of IAS 16 “Property, Plant and Equipment.” However, it is held by a lessee as a right-of-use asset and is not available for sale according to the requirements of IFRS 5, it is accounted for according to the requirements of IFRS 16.

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

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An investment property should be derecognized on disposal or when the investment property is permanently withdrawn from use and no future economic benefits are expected from its disposal, with the recognition of profit or loss.

The Company determines to transfer a property asset into, or out of, investment property according to the actual purpose of use of the asset.

When a property meets or no longer meets the definition of investment property and there is evidence of the change in use, the Company reclassifies the property as investment property or transfers it out of investment property.

14. Leases

The Company assesses whether a contract is (or contains) a lease, at inception of the contract. 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, the Company assesses whether it has the following two throughout the period of use:

(1) The right to obtain substantially all of the economic benefits from the use of the identified asset; and
(2) The right to direct the use of the identified asset.

When a contract is (or contains) a lease, the Company accounts for each lease component as a lease separately from non-lease components of the

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SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements

(Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

contract. When a lease contract contains one lease component and one or more additional lease or non-lease components, the Company allocates the contract consideration to each lease component on the basis of the relative stand-alone price of each lease component and the aggregate stand-alone prices of the non-lease 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 for that component, or a similar component, separately. If observable stand-alone price is not readily available, the Company shall estimate the stand-alone price, maximizing the use of observable information.

The Company as a lessee

Except for the leases met and selected for short-term leases and leases of low-value assets, when the Company is the lessee of a lease contract, all leases are recognized as right-of-use asset and lease liability.

The Company measures the lease liability at the present value of the lease payments that are not paid at the commencement date of the lease. If the interest rate implicit in the lease can be readily determined, lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, the lessee’s incremental borrowing rate is used. At the commencement date, the lease payments included in the lease liability includes the following payments relating to the use of the underlying asset during the lease term and that have not been paid on that date:

(1) fixed payments (including in-substance fixed payments), less any lease incentives that may be received;
(2) variable lease payments that depend on an index or a rate (initially measured at the index or rate at the commencement date);
(3) amounts expected to be payable by the lessee under residual value guarantees;
(4) the exercise price of a purchase option if the lessee is reasonably certain to exercise that option; and
(5) 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 Company measures the lease liability at amortized cost, increases the carrying amount of the lease liability using the effective interest method, reflects interest on the lease liability, and reduces the carrying amount of the lease liability by making lease payments.

On the commencement date, the Company measures the right-of-use asset at cost. The cost of the right-of-use asset should comprise:

(1) the amount of the initial measurement of the lease liability;

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SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements

(Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

(2) any lease payments made at or before the commencement date, less any lease incentives received;
(3) any initial direct costs incurred by the lessee; and
(4) 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.

The right-of-use asset should be subsequently measured at cost less any accumulated depreciation and any accumulated impairment losses; that is, the right-of-use asset is measured using a cost model.

If the lease transfers ownership of the underlying asset to the Company by the end of the lease term, or if the cost of the right-of-use asset reflects that the Company will exercise a purchase option, the right-of-use asset is depreciated from the start date of the lease to the end of the useful life of the underlying asset. Otherwise, the Company should depreciate the right-of-use asset from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term.

The Company 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 the leases met and selected for short-term leases and leases of low-value assets, the Company presents right-of-use assets and lease liabilities in the balance sheet and presents the depreciation expense and interest expense related to the lease separately in the statement of comprehensive income.

The Company has elected to account for short term leases and leases of low-value assets on either a straight-line basis over the lease term or another systematic basis and recognize lease payments as an expense over the lease term.

The Company as a lessor

The Company classifies each of its leases as either an operating lease or a finance lease. A lease that transfers substantially all the risks and rewards incidental to ownership of the underlying asset is classified as a finance lease. Otherwise, a lease is classified as an operating lease. Upon lease commencement, the Company shall recognize assets held under a finance lease in the balance sheet and expresses them as finance lease receivables at an amount equal to the net investment in the lease.

For any arrangements that contain lease and non-lease components, the

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SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements

(Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

Company applies the requirements of IFRS 15 to allocate the consideration in the contract.

The Company recognizes the rental income from operating leases as lease/rental revenue on either a straight-line basis over the lease term or another systematic basis. Variable lease payments that do not depend on an index or a rate are excluded from operating lease are recognized as rental income upon the occurrence.

15. Intangible Assets

Intangible assets acquired separately are measured on initial recognition at cost. The cost of an asset acquired as a part of a business combination is its fair value at the acquisition date. After initial recognition, intangible assets should be carried at cost less accumulated amortization and impairment losses. The internally generated intangible asset that does not meet the criteria for recognition should not be capitalized and should be recognized in profit or loss when incurred.

The useful life of the asset is divided into a finite and indefinite useful life.

Intangible assets with finite useful lives are amortized over their expected useful lives, and impairment tests should be performed when there are any indicators that the assets may be impaired. The amortization period and the amortization method for an intangible asset with finite useful lives should be reviewed at least at each financial year end. If the expected useful life of an asset is different from the previous estimate or the expected pattern of consumption of the future economic benefits has been changed, the amortization method or the amortization period should be adjusted and accounted for as a change in an accounting estimate.

Intangible assets with infinite useful lives are not amortized but impairment tests should be performed annually at the individual asset or cash-generating unit level. Intangible assets with infinite useful lives should be reviewed each period to determine whether events and circumstances continue to support an indefinite useful life assessment for that asset. If the change in the useful life assessment from indefinite to finite, the change is not applied to prior periods (prospective application).

Gains or losses arising from derecognition of an intangible asset are recognized in profit or lost.

The Company’s account policy for intangible assets is summarized as follows:

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SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements (Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

Useful life Amortization method Internally generated or externally acquired	Computer software cost Patented technology 3–5 years 10 years Straight-line amortization Straight-line amortization Externally acquired Externally acquired

16. Impairment of Non-financial Assets

The Company assess all asset within the scope of IAS 36 “Impairment of Assets” whether there is any indication that an asset may be impaired at the end of each reporting period. When there is an indication of impairment or when an impairment test is required to be performed for an asset at the same time every year, the Company shall carry out the test on an individual asset or a cash-generating unit to which an asset belongs. If the results of the impairment test show that the amount by which the carrying amount of an asset or a cash-generating unit to which an asset belongs exceeds its recoverable amount, an impairment loss should be recognized. the recoverable amount is the higher of the asset’s fair value less cost to sell and its value in use.

At the end of each reporting period, the Company shall assess whether there is any indication that a previous impairment loss recognized for an asset other than goodwill may no longer exist, or may have decreased. If such an indication exists, the entity shall estimate the recoverable amount of the asset or cash-generating unit. If the increase in the recoverable amount is caused by changes in the estimated service potential of an asset, the impairment loss can be reversed. However, after the reversal of an impairment loss, the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized.

The cash-generating unit or group to which goodwill belongs, whether or not there is indication that it is impaired, is performed at the same time every year. If the results of the impairment test show that an impairment loss should be recognized, the impairment loss to be allocated: first, to reduce the carrying amount of any goodwill, and then, to the assets other than goodwill, pro rata on the basis of the carrying amount of each asset. An impairment loss recognized for goodwill shall not be reversed.

Impairment losses and reversals of continuing operations are recognized in profit or lost.

3 2

SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements

(Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

17. Provisions

A provision should be recognized if, and only if a present obligation (legal or constructive) has arisen as a result of a past event. It is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and the amount can be estimated reliably. Where the Company expects some or all of a provision to be reimbursed, the reimbursement is recognized as a separate asset but only when it is virtually certain that reimbursement will be received. Where the effect of the time value of money is material the provision, provisions are discounted using a current pre-tax rate that reflects the risks specific to the liability. When discounting is applied to liabilities, the amount of liabilities increased over time is recognized as borrowing costs.

18. Revenue Recognition

The Company’s revenue from contracts with customers is mainly from the sale of goods. The accounting treatment is described as follows:

Sale of goods

The Company manufactures and sells goods, and the revenue is recognized when it transfers promised goods or services to the customer and when the customer obtains control (the is, the ability to direct the use of, and obtain substantially all of the remaining benefits from, the goods).

The Company provides a credit term of 30–180 days on sales of goods. Most contracts are recognized as accounts receivable when control of the goods has been transferred and an unconditional right to receive consideration has been earned. These receivables are usually short-term and without a significant financing component. For a few contracts, the goods have been transferred to the customer but no unconditional right to receive consideration has been earned, they are recognized as contract assets. The allowance for impairment of contract assets is measured at an amount equal to the lifetime expected credit losses according to the requirements of IFRS 9.

19. Borrowing Costs

Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are included in the cost of that asset. Such borrowing costs are capitalized as part of the cost of the asset. All other borrowing costs are recognized as expenses in the period in which they are incurred. Borrowing costs are interest and other costs incurred in connection with the borrowing of funds.

3 3

SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements (Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

20. Government Grants

A government grant is recognized only when there is reasonable assurance that the Company will comply with the conditions of the grant and the inflow of economic benefits from the grant will be received. When the grants are related to assets, government grants should be recognized as deferred grant income and are recognized as income in installments over the expected useful life of the related asset. When the grants are related to expenses, government grants should be recognized in profit or loss on a reasonable and systematic basis over the periods in which the related costs expected to be incurred.

When the Company receives a non-monetary asset as a grant, the assets and subsidies received are recorded at nominal amounts, and the income is recognized in the consolidated statement of income over the expected useful life and pattern of consumption of the benefit of the underlying asset by equal annual instalments. The loans at below-market interest rate or similar assistance obtained from the government or related institution are regarded as additional government grants.

21. Post-employment Benefit Plans

The employees retirement regulations are applicable to all officially appointed employees of the Company. The employee retirement fund is fully managed by the Supervisory Committee of Labor Retirement Reserve and deposited in the labor pension accounts. Because the above-mentioned pension is deposited in the name of the Supervisory Committee of Labor Retirement Reserve, which is completely separated from the Company and its domestic subsidiaries, it is not included in the above-mentioned consolidated financial statements. The employees retirement regulations of the foreign subsidiaries and branches are pursuant to the local laws and regulations.

For the post-employment benefit plan that is a defined contribution plan, the Company shall pay an employee pension contribution rate not less than 6% of the employee’s monthly salary every month, and the amount contributed should be recognized as current expense. Foreign subsidiaries and branches shall pay the contribution at a local specific percentage and recognize it as current expense.

Post-retirement benefits that are defined contribution plans are presented based on the actuarial reports at the end of the annual reporting period in accordance with the Projected Unit Credit Method. The remeasurement on the net defined benefit liability (asset) includes any changes in the return on plan assets and asset cap influence number, less the amount included in the net interest on the net defined benefit liability (asset), and actuarial gains or

3 4

SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements (Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

losses. The remeasurement on the net defined benefit liability (asset) is included in other comprehensive income when incurred and is recognized immediately in retained earnings. Past service cost is the change in the present value of the defined benefit obligation resulting from a plan amendment or curtailment, and is recognized as an expense at the earlier of the following dates:

(1) when the plan amendment or curtailment occurs; and
(2) when the entity recognizes related restructuring costs or termination benefits.

The net interest on the net defined benefit liability (asset) is determined by multiplying the net defined benefit liability (asset) by the discount rate, both of which are determined at the beginning of the annual reporting period, taking into account actual contributions and benefits paid during the period.

22. Share-based Payment

The cost of the share-based payment transactions of the equity settlement between the Company and employees is measured at the fair value of the equity instrument at the grant date. Fair value is determined using an appropriate pricing model.

The cost of the share-based payment transactions of the equity instrument is recognized during the period on a period-by-period basis when the service condition and performance condition are satisfied and a corresponding increase in equity is recognized. On the end date of each reporting period before the vesting day, the accumulated expenditure recognized for equity settlement transactions reflects the passage of the vesting period and the Company’s best estimate of the number of equity instruments that will ultimately vest. At the beginning and end of each reporting period, any changes in the accumulated cost for share-based payment transactions are recognized in profit or loss for the period.

If share-based payment awards do not ultimately satisfy the vesting condition, no expense should be recognized. However, if the vesting conditions of the equity settlement transaction are related to market conditions or non-vesting conditions and if all the service or performance conditions are satisfied, the related expense should still be recognized whether or not the market conditions or non-vesting conditions are satisfied.

When modifying the equity settlement transaction conditions, the original grant cost without modification should at least be recognized. If the modification to a share-based payment transaction increases the total fair value of the share-based payment transaction or are otherwise beneficial to the employee, the additional equity settlement transaction cost should be

3 5

SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements (Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

recognized.

If the share-based payment awards plan for equity settlement is cancelled, it will be deemed to be vested on the cancellation date, and the remaining share-base payment expenses that have not been recognized should be immediately recognized, which includes the awards plans not satisfying the non-vesting conditions within the control of the entity or employee. If the previously cancelled awards are replaced by the new awards plan, and which is confirmed to replace the cancelled awards plan at the grant date, the cancellation and the new awards plan should be regarded as a modification to the original rewards plan.

The dilutive effect of outstanding options is reflected as additional share dilution in the computation of diluted earnings per share.

When issuing restricted employee shares, payroll expenses and the corresponding increase in equity are recognized in the vesting period on the basis of the fair value of the equity instrument given at the grant date. The Company recognizes unearned remuneration of employees at the grant date. Unearned remuneration of employees is a transitional item, which is deducted from equity in the consolidated balance sheet and transferred to payroll expenses over the passage of time.

23. Income Tax

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

Current tax

Current tax liabilities (assets) for the present and prior periods should be measured using the tax rates and tax laws that have been enacted or substantively enacted by the reporting date. Current tax relating to items recognized in other comprehensive income or directly recognized in equity are recognized in other comprehensive income or equity and not in profit or loss.

The additional profit-seeking income tax levied on the undistributed surplus earnings is recorded as income tax expense on the date the Shareholders’ Meeting resolves to distribute the profit.

Deferred tax

Deferred tax is calculated on temporary differences at the end of each reporting period arising between the tax bases of assets and liabilities and their carrying amounts in the balance sheet.

3 6

SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements (Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

All taxable temporary differences should be recognized as deferred tax liabilities except for the following two conditions:

(1) The initial recognition of goodwill, or the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit (loss);
(2) The taxable temporary differences associated with investments in subsidiaries, branches and associates, and interests in joint arrangements, the timing of the reversal of such differences can be controlled and it is probable that such differences will not reverse in the foreseeable future.

A deferred tax asset is recognized for deductible temporary differences, unused tax losses and unused tax credits carried forward, to the extent that it is probable that future taxable profits will be available, except for the following two conditions:

(1) Relating to the deductible temporary differences arising from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit (loss);
(2) Relating to the deductible temporary differences arising from investments in subsidiaries, associates, and interests in joint ventures, to the extent that, and only to the extent that it is probable that the temporary difference will reverse in the foreseeable future and taxable profit will be available against which the temporary difference 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 Company 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 liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income taxes assets and liabilities relate to income taxes levied by the same taxation authority on the same taxable entity.

3 7

SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements (Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

According to the provisions of the temporary exceptions of the "International Tax Reform - Pillar Two Model Rules (Amendment to International Accounting Standards No. 12)", deferred income tax assets and liabilities of Pillar Two income tax are not allowed to be recognized and the relevant information is not disclosed.

24. Business Combinations and Goodwill

Accounting for a business combination Business combinations are accounted for under the acquisition method. The consideration transferred, the identifiable assets acquired, liabilities assumed in a business combination should be measured at fair value on the acquisition date. For each business combination, the acquirer shall measure the non-controlling interests at fair value or the proportionate share of the acquiree’s identifiable net assets. Acquisition related costs are expensed as incurred and included in the administrative expense.

When the Company acquires a business, it assesses whether the classification and designation of assets and liabilities is appropriate based on the contractual conditions, economic conditions, and other relevant circumstances that existed as of the acquisition date, including the considerations for separating embedded derivative financial instruments in host contracts held by the acquiree.

In a business combination achieved in stages, the acquirer shall remeasure its previously held equity interest in the acquiree at its acquisition-date fair value and recognize the resulting gain or loss, if any, in profit or loss.

The contingent consideration that the acquirer expects to transfer should be recognized at the acquisition-date fair value. Subsequent changes to the fair value of the contingent consideration that is classified as an asset or a liability are recognized as changes in profit or loss for the period or other comprehensive income according to the requirements of IFRS 9. However, contingent consideration that is classified as equity is not remeasured until it is finally settled within equity.

Goodwill is initially measured as the excess of consideration transferred plus non-controlling interests and the fair value of the identifiable assets and liabilities acquired. If this consideration is lower than the fair value of the net assets of the business acquired, the difference is recognized in profit or loss for the period.

After initial recognition, goodwill is measured at cost less any accumulated impairment losses. Goodwill arising in a business combination is allocated to each of the acquirer’s cash-generating units, or company of cash-generating units, that are expected to benefit from the synergies of the combination,

3 8

SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements

(Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

irrespective of whether other assets or liabilities of the acquiree are assigned to those units or groups of units. Each unit or group of units to which the goodwill is so allocated shall represent the lowest level within the entity at which the goodwill is monitored for internal management purposes, and not be larger than an operating segment.

Where part of the cash-generating unit that contains goodwill is disposed of, the carrying amount of the disposed part includes the goodwill associated with the operation disposed of. Goodwill disposed of in this circumstance is measured based on the relative recoverable amount of the operation disposed of and the retained part.

V. Significant accounting judgments, estimations, and assumptions

When the Company prepares the consolidated financial statements, the management is required to make judgments, estimates, and assumptions at the end of the reporting period, which will affect the amount reported on revenues, expenses, assets, and liabilities, and disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that may require material adjustments to the carrying amounts of the assets and liabilities affected in future periods.

1. Judgments

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

(1) Operating lease commitments – the group as a lessor

The Company has entered into commercial property leases for the investment property portfolio. Based on the evaluation on the agreed terms, the Company still retains significant risks and rewards of ownership of these properties and accounts for these leases as operating leases.

(2) The judgement on whether the company controls the investee in the cases without a majority of voting rights

The Company does not hold a majority of voting rights of some investees. However, after considering the Company’s absolute shareholding ratio of these companies, the relative shareholding ratio and shareholding dispersion of other shareholders, the written agreement among shareholders, the potential voting rights, and other factors, the Company is judged to have control over them. Please refer to Note IV for details. In addition, among them, the Company holds

3 9

SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements (Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

less than 50% of the shares of the investee and is the largest shareholder, and is judged to have no control and only have significant effect, please refer to Note VI. 5 for details.

2. Estimations and Assumptions

At the end of the reporting date, key sources of estimation uncertainty of estimates and assumptions concerning the future, and there is a significant risk of material adjustment to the carrying amounts of assets or liabilities in the next fiscal year. It is stated as follows:

(1) 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 Company 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 carry forward of unused tax losses and unused tax credits and deductible temporary differences to the extent that it is probable that 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. Please refer to Note VI for more details.

(2) Receivables – Estimation of Impairment Losses

The Company’s estimation of impairment losses on receivables are measured by the amounts arising from lifetime expected credit losses. Credit losses are defined as the present value of the difference between contractual cash flows (carrying amount) due and cash flow (evaluation of forward-looking information) expected to receive. However, cash

4 0

SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements (Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

flows relating to short-term receivables are not discounted if the effect of discounting is immaterial and credit losses are measured by the undiscounted amount of difference. If the actual future cash flows are less than expected, significant impairment losses may occur. Please refer to Note VI for details.

(3) Inventories

Estimates of net realisable 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.

VI. Descriptions of major accounting items

Cash and Cash Equivalents

Cash on hand Demand deposits Time deposits Total	December 31, 2023 $678 597,140 245,338 $843,156	December 31, 2022
		$585 1,088,558 104,175
		$1,193,318

Accounts Receivable and Accounts Receivable – Related Party

Accounts receivable Less: Loss allowance Subtotal Accounts receivable – related party Less: Loss allowance Subtotal Total	December 31, 2023 $540,636 (16,620) 524,016 30,287 - 30,287 $554,303	December 31, 2022
		$527,178 (16,620)
		510,558
		61,697 -
		61,697
		$572,255

Accounts receivables were not pledged.

The Company provides a credit term of 30–180 days usually to its customers. The total carrying amounts on December 31, 2023 and 2022 were NT$570,923 thousand and NT$588,875 thousand, respectively. For more information on loss allowances, please refer to Note VI. 14; for more information on credit risk, please refer to Note XII.

4 1

SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements

(Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

As of December 31, 2023 and 2022, the amount of accounts receivable were NT$136,987 thousand that were determined to be irrecoverable have been transferred to long-term receivables and the amount of provision for loss allowance were NT$136,987 thousand.

Inventories

Raw materials Supplies Work in process Semi-finished products finished products (including purchased components) Net value	December 31, 2023 $313,884 186,540 127,718 100,235 173,711 $902,199	December 31, 2022
		$330,994 166,817 142,717 82,328 184,324
		$907,180

The cost of inventories recognized as an expense by the Company for the years ended December 31, 2023 was NT$1,619,244 thousand, including NT$9,312 thousand recognized as a current loss when the inventory was written down to the net realizable value.

The cost of inventories recognized as an expense by the Company for the years ended December 31, 2022 was NT$1,863,827 thousand, including NT$409 thousand recognized as a current loss when the inventory was written down to the net realizable value.

The above inventories were not pledged.

Financial instruments measured at fair value through other comprehensive income

Investment in equity instruments at fair value through other comprehensive income – non-current: Shares of TWSE/TPEx listed companies Shares of non-TWSE/TPEx listed companies Total	December 31, 2023 $671,512 7,184 $678,696	December 31, 2022
		$555,987 6,347
		$562,334

The Company’s financial instruments measured at fair value through other comprehensive income were not pledged.

4 2

SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements

(Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

The cash dividend income of financial assets at fair value through other comprehensive income held by the Company for the years ended December 31, 2023 and 2022 were NT$8,199 thousand and NT$202 thousand, respectively.

5. Investments Accounted for Using the Equity Method

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

Name of invested company Investments in subsidiaries: Siward Technology Co.Ltd. Apex Optech Co. Apex Optech Corporation SCT USA, Inc. Siward electronic tech.(Shenzhen) Inc. Subtotal Investments in associates: Securitag Assembly Group Co., Ltd. Subtotal Less: cumulative impairment Total	December 31,2023 Amount Shareholding ratio% $315,282 100.00 2,178 33.93 37,118 87.78 13,747 100.00 8,768 100.00 377,093 205,747 13.63 582,840 (3,566) $579,274	December 31,2022
	Amount $315,282 2,178 37,118 13,747 8,768 377,093 205,747 582,840 (3,566) $579,274	Amount Shareholding ratio % $330,498 100.00 2,720 33.93 37,257 87.78 11,999 100.00 9,805 100.00 392,279 195,252 13.63 587,531 (3,566) $583,965

(1) The details of profit or loss of subsidiaries and associates recognized for the years ended December 31, 2023 and 2022 were as follows:

Siward Technology Co.,Ltd. Apex Optech Co. Apex Optech Corporation SCT USA Inc. Siward electronic tech. (Shenzhen) Inc. Securitag Assembly Group Co., Ltd. Total	For theyears ended December 31	For theyears ended December 31
	2023 $8,829 (520) (110) 1,761 (8,64) 23,138 $32,234	2022
		$3,424 (566) 346 2,847 (1,952) 25,951
		$30,050

The cash dividend income of Securitag Assembly Group Co., Ltd. held by the Company for the years ended December 31, 2023 and 2022 were NT$12,675 thousand and NT$8,642 thousand, respectively.

4 3

SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements

(Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

(2) The details of the exchange differences on translating the financial statements of foreign operations recognized for the years ended December 31, 2023 and 2022 were as follows:

Siward Technology Co.,Ltd. Apex Optech Co. Apex Optech Corporation SCT USA Inc. Siward electronic tech. (Shenzhen) Inc. Securitag Assembly Group Co., Ltd. Total	For theyears ended December 31	For theyears ended December 31
	2023 $(23,708) (22) (29) (13) (173) $(21) $(23,966)	2022
		$(11,438) 38 50 977 208 $(29)
		$(10,194)

(3) Because the chairman of Securitag Assembly Group Co., Ltd.,- the investee company is the same person as the chairman of the Company, the Company has significant influence over the investee company according to the requirements of IAS 28 “Investments in Associates.” Although the Company holds 13.63% of the voting rights of Securitag Assembly Group Co., Ltd.; however, because the other two investors each holds more than 7% of the voting rights of Securitag Assembly Group Co., Ltd., the two investors working together is enough to deter the Group from leading the vital activities of Securitag Assembly Group Co., Ltd. Therefore, the Company has no control over Securitag Assembly Group Co., Ltd. and only has significant influence. As of December 31, 2023 and 2022, the fair values of Securitag Assembly Group Co., Ltd. were NT$616,457 thousand and NT$502,384 thousand, respectively.

6. Property, Plant and Equipment

Cost: January 1, 2023 Addition Reduction Reclassification December 31, 2023	Land and land improvements	Buildings	Machinery equipment	Office equipment	Transportation equipment	Lased assets	Other equipment	Total
	$307,049 - - -	$452,942 402 - 120	$2,989,222 10,842 (1,586) 38,924	$15,008 638 (349) -	$2,312 - - -	$6,550 - - -	$479,389 17,788 (796) 3,592	$4,252,472 29,670 (2,731) 42,636
	$307,049	$453,464	$3,037,402	$15,297	$2,312	$6,550	$499,973	$4,322,047

4 4

SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements

(Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

Depreciation and	Land and land improvements	Buildings	Machinery equipment	Office equipment	Transportation equipment	Lased assets	Other equipment	Total
	$ - - - $ -	$(269,071) (8,859) - $(277,930)	$(2,062,976) (150,396) 1,485 $(2,211,887)	$(13,948) (554) 349 $(14,153)	$(2,312) - - $(2,312)	$(6,342) (45) - $(6,387)	$(403,290) (30,759) 794 $(433,255)	$(2,757,939) (190,613) 2,628 $(2,945,924)
impairment: January 1, 2023 Depreciation Reduction Reclassification December 31, 2023
	$ -	$(269,071)	$(2,062,976)	$(13,948)	$(2,312)	$(6,342)	$(403,290)	$(2,757,939)

Cost: January 1, 2022 Addition Reduction Reclassification December 31, 2022 Depreciation and	Land and land improvements	Buildings	Machinery equipment	Office equipment	Transportation equipment	Lased assets	Other equipment	Total
	$307,049 - - -	$452,565 377 - -	$2,822,591 109,204 (27,385) 84,812	$14,130 1,015 (137) -	$2,312 - - -	$6,550 - - -	$468,266 13,288 (3,466) 1,301	$4,073,463 123,884 (30,988) 86,113
	$307,049	$452,942	$2,989,222	$15,008	$2,312	$6,550	$479,389	$4,252,472
	$ - - -	$(258,982) (10,089) -	$(1,935,581) (154,499) 27,104	$(13,592) (493) 137	$(2,312) - -	$(6,297) (45) -	$(374,910) (31,766) 3,386	$(2,591,674) (196,892) 30,627
impairment: January 1, 2022 Depreciation Reduction December 31, 2022 Net carrying amount: December 31, 2023 December 31, 2022
	$ -	$(269,071)	$(2,062,976)	$(13,948)	$(2,312)	$(6,342)	$(403,290)	,$(2,757,939)
	$307,049	$175,534	$825,515	$1,144	$ -	$163	$66,718	$1,376,123 $1,494,533
	$307,049	$183,871	$926,246	$1,060	$ -	$208	$76,099

Note 1: Reclassification refers to the reclassification of prepayments for equipment and investment properties to property, plant and equipment and reclassification of items of property, plant and equipment.

(1) The major components of the Company’s buildings are principally the main building and air-conditioning equipment, which are depreciated over the useful lives of 50 years and 15 years, respectively.
(2) For more information on the Company’s property, plant and equipment that are provided for as a pledge, please refer to Note VIII.
(3) No interest capitalization is required for the acquisition of property, plant and equipment for the years ended December 31, 2023 and 2022.
Investment Properties

Investment properties include the investment properties owned by the Company. The Company enters into a commercial lease agreement for its own investment properties. the lease term ranges from 1 to 38 years, and the lease agreement does not contain the terms that the rent is adjusted

4 5

SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements

(Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

according to the market environment every year.

Cost: January 1, 2023 Addition December 31, 2023 January 1, 2022 Addition December 31, 2022 Depreciation and impairment: January 1, 2023 Depreciation for the current year December 31, 2023 January 1, 2022 Depreciation for the current year December 31, 2022 Net carrying amount: December 31, 2023 December 31, 2022 Rental income from investment properties Less: Direct operating expenses incurred by investment properties that generate rental income for the current period Direct operating expenses incurred by investment properties that do not generate rental income for the current period Total		Buildings $55,210 - $55,210 $55,210 - $55,210 $6,516 1,372 $7,888 $5,114 1,372 $6,516 $48,694 $48,694 For theyears ended December 31	Buildings $55,210 - $55,210 $55,210 - $55,210 $6,516 1,372 $7,888 $5,114 1,372 $6,516 $48,694 $48,694 For theyears ended December 31











		2023 $1,383 - - $1,383	2022
			$1,284 - -
			$1,284

The Company’s investment properties were not pledged.

The investment properties held by the Company are not measured at fair value, and only the information on their fair value is disclosed, which are classified within level 3 of the fair value hierarchy. The fair values of the investment properties held by the Company as of December 31, 2023 and December 31, 2022 were NT54,892 thousand and NT$55,284 thousand, respectively. The investment properties of the Company are recorded mainly

4 6

SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements

(Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

based on the appraisal report of external experts in previous years, and taking into account the changes in local housing price index as the benchmark for the current year's fair value.

8. Intangible Assets

ntangible Assets
Cost: January 1, 2023 Addition – separately acquired Reclassification December 31, 2023 January 1, 2022 Addition – separately acquired December 31, 2022 Amortization and impairment: January 1, 2023 Amortization December 31, 2023 January 1, 2022 Amortization December 31, 2022 Net carrying amount: December 31, 2023 December 31, 2022	Patented technology	Computer software	Total
	$126,280 -	$28,181 5,163 2,460	$154,461 5,163 2,460
	$126,280	$35,804	$162,084
	$126,280 -	$24,011 4,170	$149,681 4,170
	$126,280	$28,181	$154,461
	$(73,663) (12,628)	$(24,425) (3,289)	$(98,088) (15,917)
	$(86,291)	$(27,714)	$(114,005)
	$(61,035) (12,628)	$(22,169) (2,256)	$(83,204) (14,884)
	$(73,663)	$(24,425)	$(98,088)
	Patented technology	Computer software	Total
	$39,989	$8,090	$48,079
	$52,617	$3,756	$56,373

Amortization amounts of intangible assets are recognized as follows:

Operating costs Selling and marketing expenses General and administrative expenses Research and development expenses Total	For theyears ended December 31	For theyears ended December 31
	2023 $2,464 - 257 13,196 $15,917	2022
		$313 14 197 14,360
		$14,884

4 7

SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements (Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

9. Other non-current assets

Prepayment for equipment Long-term receivables Less: Loss allowance Refundable deposits Total	December 31, 2023 $18,331 136,987 (136,987) 810 $19,141	December 31, 2022
		$39,683 136,987 (136,987) 827
		$40,510

10. Long-term borrowings

The details of long-term debt payable as of December 31, 2023 and 2022 are described as follows:

Type Secured loan Type	Interest rate(%) 1.750 Interest rate(%)	Repaymentperiod and method	Repaymentperiod and method
		From September 2020 to September 2025, the first two and a half years is a grace period. When the grace period expires, it is repayable in 30 equal monthly instalments and the interest is paid monthly. Repaymentperiod and method From September 2020 to September 2025, the first two and a half years is a grace period. When the grace period expires, it is repayable in 30 equal monthly instalments and the interest is paid monthly. From March 2022 to March 2025, the interest is paid once a month and the principal will not be repaid until maturity. From October 2018 to October 2023, repayable in 20 equal quarterly instalments and the interest is paid monthly.



Secured loan Secured loan Secured loan	1.625 2.060 1.721		From September 2020 to September 2025, the first two and a half years is a grace period. When the grace period expires, it is repayable in 30 equal monthly instalments and the interest is paid monthly. From March 2022 to March 2025, the interest is paid once a month and the principal will not be repaid until maturity. From October 2018 to October 2023, repayable in 20 equal quarterly instalments and the interest is paid monthly.

4 8

SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements

(Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

11. Post-employment Benefit Plans

Defined contribution plan

The employees retirement regulations formulated by the Company in accordance with the “Labor Pension Act” is a definite provision plan. According to the Act, the Company shall pay an employee pension contribution rate not less than 6% of the employee’s monthly salary every month. The Company have already appropriated 6% of the employee’s salary to the individual pension account of the Bureau of Labor Insurance in compliance with the employees retirement regulations that is formulated according to the Act.

The expense amounts recognized by the Company for the years ended December 31, 2023 and 2022 of the defined contribution plans were NT$19,258 housand and NT$20,507 thousand, respectively.

Defined benefit plan

The employees pension regulations formulated by the Company in accordance with the “Labor Standards Act” is a defined benefit plan. The payment of the employees’ pension is calculated according to the base of the service periods and one month’s average wage of the worker at the time when his or her retirement is approved. For years of service within 15 years (inclusive), two bases are given for each full year of service rendered. But for the rest of the years over 15 years, one base is given for each full year of service rendered. However, the total number of bases shall be no more than 45. The Company shall appropriate labor pension reserve funds 2% of the total monthly wages of their employees and deposit such amount in a designated account at the Bank of Taiwan in the name of the Supervisory Committee of Labor Retirement Reserve. In addition, before the end of each year, the Company shall assess the balance in the designated labor pension reserve funds account as mentioned above. If the amount is inadequate to pay pensions calculated according to the above-mentioned for workers expected to meet retirement conditions in the following year, the Company are required to make up the difference in one appropriation before the end of March the following year.

Asset allocation is carried out by the Ministry of Labor in accordance with the Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund. The fund invests under proprietary operation and entrusted operation, with both actively and passively managed medium and long-term investment strategies. In consideration of market, credit, liquidity, and other risks, the Ministry of Labor set up the fund risk limit and control plan to provide sufficient flexibility to achieve target returns and curb excessive risk taking. With regard to utilization of the Fund, the minimum earnings in the annual distributions on the final financial

4 9

SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements (Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

statement shall not be less than the earnings attainable from the amounts accrued from two-year time deposits with the interest rates offered by local banks. In case that the deficit is still inadequate to cover the surplus, Treasury Funds can be used to cover the deficits after the approval of the competent authority. Because the Company has no right to participate in the operation and management of the fund, it cannot disclose the classification of the fair value of the plan assets in accordance with Paragraph 142 of IAS 19. As of December 31, 2023, the Company is expected to allocate NT$1,674 thousand in the following year under the defined benefit plan.

As of December 31, 2023, the weighted average duration of the Company’s defined benefit plan is 7 years.

The below summarizes the costs recognized in profit or loss for the defined benefit plan:

For the years ended December 31

Service cost for the current period Net interest on the net defined benefit liability (asset) Total	2023	2022
	$87 683	$130 560
	$770	$690

Reconciliation of the present value of the defined benefit obligation and the fair value of the plan assets is as follows:

	December	December	January 1,
	31,2023	31,2022	2022
Present value of the defined benefit obligation	$133,630	$142,765	$159,482
Fair value of the plan assets	(87,448)	(87,243)	(78,597)
Other non-current liabilities – net defined benefit liability (asset)	$416,182	$55,522	$80,885

Reconciliation of the net defined benefit liability (asset):

January 1, 2022 Service cost for the current period Interest expense (income) Subtotal Remeasurements of the defined benefit liability/asset: Actuarialgain or loss due to changes in	Defined benefit Present value of obligation	Plan assets Fair value	Net defined benefit liability (asset)
	$159,482 130 1,083	$(78,597) - (523)	$80,885 130 560
	160,695 6	(79,120) -	81,575 330

5 0

SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements

(Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

Defined benefit Present value of obligation	Plan assets Fair value	Net defined benefit liability (asset)
(5,560) (6,332) -	- - (6,039)	(1,563) (6,332) (6,039
148,839	(85,159)	87,449
(6,074)	6,074 (8,158)	- (8,158)
$142,765 87 1,750	$(87,243) - (1,067)	$55,522 87 683
144,602 11 (3,442) 488 -	(88,310) - - - (757)	56,292 11 (3,442) 488 (757)
141,659	(89,067)	52,592
(8,029)	8,029 (6,410)	- (6,410)
$133,630	$(87,448)	$46,182

The following key assumptions used to determine the Company’s defined benefit plan:

enefit plan:
Discount rate Expected salary increase rate	December 31, 2023 1.20% 3.00%	December 31, 2022
		1.25% 3.00%

A sensitivity analysis for each significant actuarial assumption:

For theyears ended December 31	For theyears ended December 31	For theyears ended December 31	For theyears ended December 31
2023		2022
Increase in defined benefit obligation	Decrease in defined benefit obligation	Increase in defined benefit obligation	Decrease in defined benefit obligation
$ - 2,482 2,432 -	$(2,408) - - (2,373)	$ - 2,824 2,768 -	$(2,736) - - (2,697)

5 1

SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements (Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

The above-mentioned sensitivity analysis is to analyze the possible impact on the defined benefit obligation brought by a reasonably possible change in a single actuarial assumption (e.g. discount rate or expected salary), with other assumptions remaining unchanged. Because some actuarial assumptions are correlated, changes in only a single actuarial assumption are rarely seen in practice. Therefore, such analysis has its limitations.

The methods and assumptions adopted in the sensitivity analysis for the current period are the same as those of the prior period.

12. Equity

(1) Capital

As of January 1, 2022, the authorized capital of the Company amounted to NT$2,300,000 thousand, with each share at NT$10 par value, 159,421,022 shares issued, and the paid-in share capital of NT$1,594,210 thousand. There was no change as of December 31, 2023. The holders of shares shall be entitled to one vote for each share and the right to receive dividends.

(2) Additional paid-in capital

Item Additional paid-in capital in excess of par- common stock Conversion premium of the convertible bond Change in the net equity of associates and joint ventures accounted for using the equity method Others Total	December 31, 2023 $557,589 239,970 - 4,914 $802,473	December 31, 2022
		$557,589 239,970 - 4,914
		$802,473

According to the law, additional paid-in capital should not be used unless it is used to set off losses. When the company has no accumulated losses, any excess on the issuance of shares with a par value and additional paid-in capital generated income from a gift received may be set aside as equity capital within a certain ratio of the paid-in capital. The above-mentioned additional paid-in capital may also be distributed to its original shareholders in proportion to the number of shares being held by each of them by cash.

5 2

SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements (Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

(3) Distributable earnings and dividend policy

According to its Articles of Incorporation, the Company’s earnings, if any, in its annual final account shall be first used to pay income taxes and make up for its accumulated losses in previous years and then 10% of the said profits should be set aside as a legal reserve first and a special reserve may be appropriated or reversed as required by law or the competent authority. Where there is surplus, dividends may be paid to shareholders. Among them, cash dividends shall be no less than 10% of the total dividends to shareholders. The Board of Directors shall prepare a distribution proposal based on the actual profit and capital for the year. The proposal is submitted to the shareholders’ meeting for resolution. If there is a reduction in accumulated shareholders’ equity in the current year but there is not sufficient net income, a special reserve of the same amount should be set aside from the accumulated undistributed earnings of the previous year and deducted prior to the provision for distribution.

According to the Company Act, surplus profits should be allocated to a legal reserve until the legal reserve amounts to the authorized capital. A legal reserve may be used to cover losses. Where a company incurs no loss, it may distribute the portion of legal reserve which exceeds 25 percent of the paid-in capital to its original shareholders in proportion to the number of shares being held by each of them by issuing new shares or by cash.

As per March 31 2021 Order No. Jin-Guan-Zheng-Fa-Zi-1090150022 of the Financial Supervisory Commission, for the first-time adoption of IFRS, the unrealized gain on revaluation and cumulative translation adjustments (gains) transferred to retained earnings on the date of conversion due to selection of exemptions for the IFRS 1 “First-time Adoption of IFRSs” exemptions are set aside as special reserve. When the Company subsequently uses, disposes of, or reclassifies the relevant assets, it may reverse to distributable earnings a proportional amount of the special reserve originally set aside. The Company has no circumstances that special reserve is required to be set aside for the first -time adoption, and thus the Order has no influence on the Company.

Details of the 2023 and 2022 earnings distribution and dividends per share as approved and resolved by the Board of Directors’ meeting and shareholders’ meeting on February 29, 2024 and June 19, 2023, respectively, are as follows:

5 3

SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements

(Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

Appropriation of earnings	Appropriation of earnings	Dividendper	share(NT$)
2023 $26,366 159,421 $185,787	2022	2023 NT$1	2022
	$78,274 350,726		NT$2.2
	$429,000

In addition to the above-mentioned cash dividend of NT$1 per share distributed from appropriations of earnings for the years ended December 31, 2023, the company's board of directors proposed to distribute a cash dividend of 79,711 thousand from capital surplus, with a distribution of NT$0.5 per share. Therefore, the total amount of cash distributed to shareholders was NT$1.5 per share.

For more information on the basis of estimate and the amounts recognized for employees’ compensation and remuneration to directors, please refer to Note VI (16).

13. Operating revenue

Revenue from contracts with customers Revenue from goods sold Other operating revenue Total	For theyears ended December 31	For theyears ended December 31
	2023 $2,185,518 6,184 $2,191,702	2022
		$3,039,448 5,881
		$3,045,329

For the years ended December 31, 2023 and 2022, the Company’s revenue from contracts with customers were recognized at a point in time.

(1) Balance of contract

A. Contract assets – current

The Company had no contract assets for the years ended December 31, 2023 and 2022.

B. Contract liabilities – current

Sale of goods	December 31, 2023 $8,160	December 31, 2022	January 1, 2022
		$17,917	$27,372

5 4

SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements (Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

The Company’s balance of contract liabilities decreased for the years ended December 31, 2023 because most of the performance obligations were fulfilled and recognized as revenue in the current period, of which the beginning balance of NT$6,115 thousand was recognized as revenue in the current period.

The Company’s balance of contract liabilities decreased for the years ended December 31, 2022 because most of the performance obligations were fulfilled and recognized as revenue in the current period, of which the beginning balance of NT$10,987 thousand was recognized as revenue in the current period.

(2) The transaction price allocated to the performance obligations

As of December 31, 2023 and 2022, the Company’s customer contracts for the sale of goods are all shorter than one year, so it is not necessary to provide information on unfulfilled performance obligations.

(3) Assets recognized from costs to obtain or fulfill a contract with a customer

None.

14. Expected credit losses

Operating expenses – expected credit losses Accounts receivable Long-term receivables Total	For theyears ended December 31	For theyears ended December 31
	2023 $- - $-	2022
		$6,034 20,000
		$26,034

For more information on credit risk, please refer to Note XII.

The loss allowance for the Company’s receivables (including notes receivable, accounts receivable, and long-term receivables (accounting for other non-current assets)) are all measured by the amount of lifetime expected credit losses, considering counterparty credit risks and other factors and using the provision matrix. The relevant description of the assessment of the amount of the loss allowance as of December 31, 2023 and December 31, 2022 are described as follows:

5 5

SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements (Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

December 31, 2023

Group I: An Individual assessment for counterparties in some regions. The total carrying amount of long-term receivables was NT$136,987 thousand and was accounted for as other non-current assets, all of which are overdue, and the amount of provision for loss allowance was NT$136,987 thousand.
Group II: The provision matrix is used to measure allowance losses. The relevant information is as follows:

Not overdue (Note)		Number of	days overdue	days overdue	Total
	Within 30 days	31–60 days	61–90 days	More than 91 days
$522,655 0.54%	$32,217 9.81%	$9,276 41.55%	$ - -%	$6,775 100%	$570,923 (16,620)
(2,832)	(3,159)	(3,854)		(6,775)
$519,823	$29,058	$5,422	$-	$-	$554,303

December 31, 2022

Group I: An Individual assessment for counterparties in some regions. The total carrying amount of long-term receivables is NT$136,987 thousand and is accounted for as other non-current assets, all of which are overdue, and the amount of provision for loss allowance is NT$136,987 thousand.
Group II: The provision matrix is used to measure allowance losses. The relevant information is as follows:

Not overdue (Note)		Number of	days overdue	days overdue	Total
	Within 30 days	31–60 days	61–90 days	More than 91 days
$577,290 1.53%	$2,650 5.77%	$1,589 27.45%	$325 53.85%	$7,021 100%	$588,875 (16,620)
(8,835)	(153)	(436)	(175)	(7,021)
$568,455	$2,497	$1,153	$150	$-	$572,255

Note:The Company’s notes receivables are not overdue.

5 6

SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements (Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

The movement in the provision for impairment of note receivables and trade receivables during the years ended December 31, 2023 and 2022 are as follows:

Notes receivable	Accounts receivable	Long-term receivables
$ - -	$16,620 -	$136,987 -
$-	$16,620	$136,987
$ - -
	$10,586 6,034	$116,987 20,000
$-	$16,620	$136,987

15. Leases

(1) The Company as a lessee

The Company leases multiple and different types of assets, including real estate (land or buildings), machinery equipment, transportation equipment, office equipment, and other equipment. The lease terms for each contract range from 1 to 20 years.

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

The effects of leases on the Company’s financial position, financial performance, and cash flows are described as follows:

A. Amount recognized in the balance sheet

(a) Right-of-use asset

Carrying amount of right-of-use assets

Land Buildings Total	December 31, 2023	December 31, 2022
	$26,701 4,175	$30,583 8,351
	$30,876	$38,934

During the years ended December 31, 2023, the company did not increase the right-of-use assets; during the years ended December

5 7

SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements

(Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

31, 2022, The Company’s additions to right-of-use assets amounting to NT$1,860 thousand.

(b) Lease liability

Current Non-current Total	December 31, 2023	December 31, 2022
	$8,143 23,768	$8,027 31,912
	$31,911	$39,939

Please refer to Note VI.17(4) for the interest on lease liabilities recognized during the years ended December 31, 2023 and 2022 and refer to Note XII.5 liquidity risk management for the maturity analysis for lease liabilities as of December 31, 2023 and 2022.

B. Amount recognized in the statement of comprehensive income

Depreciation of right-of-use assets

Depreciation of right-of-use assets
Land Buildings Total	For theyears ended December 31
	2023	2022
	$3,882 4,176	$3,883 4,175
	$8,058	$8,058

C. Income and costs relating to leasing activities

Income and costs relating to leasing	activities	activities
Expenses for short-term rentals	For theyears ended December 31
	2023	2022
	$5,628	$6,097

D. Cash outflow related to lessee and lease activity

During the years ended December 31, 2023 and 2022, The Company’s total cash outflows for leases amounting to NT$13,422 thousand and NT$14,244 thousand, respectively.

E. Other information related to leasing activities

(a) Variable lease payments

Part of the Company’s real estate lease agreements include the terms of variable lease payments with respect to the changes in

5 8

SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements (Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

the assessed current land value, and the amount is linked to the assessed current land value of the leased object. It is not uncommon for the industry to which the Company belongs to enter into leases with such variable lease payments. Because such variable lease payments do not meet the definition of lease payments, they are not included in the measurement of assets and liabilities.

(b) Options to extend or terminate the lease

Part of the Company’s real estate lease agreements include options to extend or terminate the lease. The lease term is determined by the non-cancelable period for which the lessee has a right to use the underlying asset together with periods covered by an extension option which the lessee is reasonably certain to exercise and a termination option which the lessee is reasonably certain not to exercise. The use of such options can maximize the managing flexibility in operations. Most of the options to extend or terminate the lease are exercisable only by the Company. After the commencement date, the Company shall reassess whether the lease, upon the occurrence of either a significant event or a significant change (in circumstances that is within the control of the lessee, and affects whether the lessee is reasonably certain to exercise an option not previously included in its determination of the lease term, or not to exercise an option previously included in its determination of the lease term).

(c) Residual value guarantee: None.

(2) The Company as a lessor

For the disclosure of the Company’s own investment properties, please refer to Note VI. 7. A self-owned investment properties are classified as operating lease because it has not transferred substantially all the risks and rewards incidental to ownership of the underlying asset.

Lease income on operating leases Income related to fixed lease payments and variable lease payments that depend on an index or a rate Income related to variable lease payments that do not depend on an index or a rate Total	For theyears ended December 31	For theyears ended December 31
	2023	2022
	$1,383 -	$1,284 -
	$1,383	$1,284

5 9

SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements

(Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

Employee benefits, depreciation and amortization expenses, and functional types are summarized as follows:

Type of function Type of nature	For the years ended December 31, 2023	For the years ended December 31, 2023	For the years ended December 31, 2023	For the years ended December 31, 2022	For the years ended December 31, 2022	For the years ended December 31, 2022
	Related to operating costs	Related to operating costs	Total	Related to operating costs	Related to operating costs	Total
Employee benefit expenses
Payroll expenses	$321,398	$134,398	$455,796	$361,866	$180,013	$541,879
Labor/Health insurance expenses	35,930	12,113	48,043	37,829	11,093	48,922
Pension expense	14,906	5,122	20,028	16,045	5,152	21,197
Dirctors remuneration	-	9,125	9,125	-	22,592	22,592
Other employee benefit expenses	19,814	4,525	24,339	21,828	4,780	26,608
Depreciation expenses	186,162	13,881	200,043	192,889	13,433	206,322
Amortization expenses	2,464	13,453	15,917	313	14,571	14,884

Respectively, The number of employees of the Company as of December 31, 2023 and 2022 were 729 and 770, of which the number of directors who are not concurrently employees were 6.

For the years ended December 31, 2023 and 2022, the average of employees benefit expenses of Company were NT$758 thousand and NT$836 thousand, respectively.

For the years ended December 31, 2023 and 2022, the average of employees salaries of the Company were NT$630 thousand and NT$709 thousand, respectively.

The Company’s average salary expense adjustment for the year ended December 31, 2023 decreased by 11.1%.

The Company has set up an audit committee to replace the supervisor in accordance with the regulations, so the remuneration of the supervisor has not been recognized.

The Company’s employees’ compensation information is as follows:

Where there is a profit for the current year, the Company shall distribute 5% of the profit as remuneration to employees and not more than 3% of the profit as remuneration to directors. However, if the Company has accumulated losses, profit shall be set aside in advance to make up for the losses. Profit refers to the net income before deducting remuneration to employees and remuneration to directors. Performance evaluation and

6 0

SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements (Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

remuneration of directors and managersin addition to considering the usual level of payment in the industry, personal performance and contribution, the company’s operating performance and the reasonableness of the relationship between future risks, and the results of the director’s performance evaluation are also considered, and the reasonableness of the relevant salary is reported. The remuneration committee and the board of directors approve the application, and review the remuneration system in a timely manner based on the actual operating conditions and relevant laws and regulations, in order to strike a balance between the company's sustainable operation and risk control.

The remuneration referred to in the preceding paragraph includes cash remuneration, stock options, stock ownership, retirement benefits or severance pay, various allowances and other incentives. The scope of the Charter is consistent with the director and manager remuneration set forth in “the Regulations Governing Information to be Published in Annual Reports of Public Companies”.

The Company’s Article of Incorporation stipulates that if the Company has profits, it shall appropriate 5% as employees’ compensation and not more than 3% as remuneration to directors. However, if it has accumulated losses, the profits should be set aside in advance to make up for the losses. The above-mentioned employees’ compensation should, 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, be distributed in the form of shares or in cash; and in addition thereto a report of such distribution should be submitted to the shareholders’ meeting. For more information on employees’ compensation and remuneration to directors and supervisors approved by the board of directors, please visit the “Market Observation Post System” of the Taiwan Stock Exchange.

Based on profit of December 31, 2023, the Company estimated employees’ compensation and remuneration to directors at 5% and 2%, respectively. During the years ended December 31, 2023, employees’ compensation and remuneration to directors recognized were NT$18,403 thousand and NT$7,361 thousand, respectively. During the years ended December 31, 2022, employees’ compensation and remuneration to directors recognized were NT$52,685 thousand and NT$21,074 thousand, respectively. The basis for estimating the distribution were the profit status for the year. The above-mentioned amounts are accounted for under payroll expenses.

The Company’s employees’ compensation and remuneration to directors for the years ended December 31, 2023 were paid in cash at NT$18,403 thousand and NT$7,361 thousand, respectively, by a resolution adopted by the board of directors on February 29, 2024. There were no material differences in the recognized amount for the years ended December 31,2023 financial statements.

6 1

SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements

(Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

No material differences exist between the recognized amount and the actual distribution of the employee bonuses and remuneration to directors for the year ended December 31, 2022.

Non-operating income and expenses
(1) Interest revenue

nterest revenue
Interest revenue Financial assets measured at amortized cost	For theyears ended December 31 2023 2022 $16,585 $6,073
		2022
		$6,073

(2) Other income

(2) Other income
Rental income Dividend income Other income Total (3) Other gains and losses Gains (losses) on disposal of property, plant, and equipment Foreign exchange gains (losses), net Other losses Total (4) Financial costs Interest on bank loans Interest on lease liabilities Total financial costs	For theyears ended December 31
	2023 2022 $4,987 $5,244 8,199 202 8,457 14,437 $21,643 $19,883 For theyears ended December 31 2023 2022 $174 $(361) 6,822 142,450 (5) (215) $6,991 $141,874 For theyears ended December 31 2023 2022 $(10,520) $(10,208) (523) $(11,043) (638) $(10,846)		2022
			$5,244 202 14,437
			$19,883
	2023 $(10,520) (523) $(11,043)

		$(10,846)

Components of other comprehensive income
(1) The components of other comprehensive income for the years ended December 31, 2023 are as follows:

6 2

SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements

(Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

Items that will not be reclassified to profit or loss: Remeasurements of the defined benefit plan Gains or losses on valuation of investment in equity instruments at fair value through other comprehensive income Share of other comprehensive Income of subsidiaries, associates, and joint ventures Items that will be reclassified to profit or loss: The exchange differences on translating the financial statements of foreign operations Share of other comprehensive Income of subsidiaries, associates, and joint ventures Total other comprehensive income for the period	Occurred in the current year $3,700 116,025 53 (23,945) (21) $95,812	Reclassification adjustments in the currentperiod $ - - - - - $ -	Other comprehensive income $3,700 116,025 53 (23,945) (21) $95,812	Tax income (expense) $(740) (23,273) - 4,779 - $(19,234)	After-tax amount $2,960 92,752 53 (19,166) (21) $76,578

(2) The components of other comprehensive income for the years ended December 31, 2022 are as follows:

Items that will not be reclassified to profit or loss: Remeasurements of the defined benefit plan Gains or losses on valuation of investment in equity instruments at fair value through other comprehensive income Share of other comprehensive Income of subsidiaries, associates, and joint ventures Items that will be reclassified to profit or loss: The exchange differences on translating the financial statements of foreign operations Share of other comprehensive Income of subsidiaries, associates, and joint ventures Total other comprehensive income for the period	Occurred in the current year $17,895 (545,980) 144 (10,165) (29) $(538,135)	Reclassification adjustments in the currentperiod $ - - - - - $ -	Other comprehensive income $17,895 (545,980) 144 (10,165) (29) (538,135)	Tax income (expense) $(3,579) 109,196 - 2,050 - $107,667	After-tax amount $14,316 (436,784) 144 (8,115) (29) $(430,468)

6 3

SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements

(Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

19. Income Tax

The major components of income tax expense are as follows:

A. Income tax recognized in profit or loss

A. Income tax recognized in profit or loss
Tax expense for the current period: Income tax payable Adjustments recognized in the current period in relation to the current tax of prior years deferred tax expenses: Deferred tax expenses relating to origination and reversal of temporary differences Income tax expense	For theyears ended December 31
	2023 $82,892 (995) (588) $81,309	2022
		$196,409 (1,362) 16,610
		$211,657

B. Income tax recognized in other comprehensive income

Deferred tax income (expense): Remeasurements of the defined benefit plan Equity instruments measured at fair value through other comprehensive income The exchange differences on translating the financial statements of foreign operations Income tax relating to components of other comprehensive income	For theyears ended December 31 2023 2022	For theyears ended December 31 2023 2022
	2023
	$(740) (23,273) 4,779 $19,234	$(3,579) 109,196 2,050
		$107,667

C. Income tax recognized directly in equity None.

D. Reconciliation of tax expense and accounting profit multiplied by the applicable tax rates is as follows:

D. Reconciliation of tax expense and accounting profit applicable tax rates is as follows:	multiplied by the	multiplied by the
Net income from continuing operations Income tax calculated at the statutory tax rate of parent company Tax effects of gains on tax exemption Tax effects of non-deductible expenses on tax return Tax effects of deferred tax assets/liabilities	For theyears ended December 31
	2023 $342,297 $68,459 (4,515) 2,526 -	2022
		$979,933
		$195,986 (42) 15,394 -

6 4

SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements

(Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

Additional 5% of income tax levied on the undistributed surplus earnings Adjustments recognized in the current year in relation to the current tax of prior years Total tax expenses recognized in profit or loss	For theyears ended December 31	For theyears ended December 31
	2023 15,834 (995) $81,309	2022
		1,681 (1,362)
		$211,657

E. The balance of deferred tax assets (liabilities) related to the following items:

For the years ended December 31, 2023

Temporary differences Unrealized foreign exchange losses Unrealized foreign exchange gains Arising from the recognition of estimated commissions expense Allowance for bad debts exceeding the limit Impairment loss on property, plant and equipment Allowance to reduce inventory to market Net defined benefit liability – non-current Remeasurements of the defined benefit plan Investment loss (gain) accounted for under the equity method Impairment loss – under the equity method of accounting for long-term investments Impairment loss – under the cost method of accounting for long-term investments Cumulative translation adjustments Losses on valuation of investment in equity instruments at fair value through other comprehensive income Deferred tax income/(expense): Deferred tax assets/(liabilities), net The information presented in the balance sheet is as follows: Deferred tax assets Deferred tax liabilities	Beginning balance $1,248 (246) 1,284 2,134 2,208 12,049 11,292 86 (34,186) 713 2,662 431 (80,965) $(81,290) $34,107 $(115,397)	Recognized in profit or loss $2,776 (431) (557) 9 - 1,863 (1,128) - (1,944) - - - - $588	Recognized in other comprehensive income	Directly recognized in Equity	Ending balance $4,024 (677) 727 2,143 2,208 13,912 10,164 (654) (36,130) 713 2,662 5,210 (104,238) $(99,936) $41,763 $(141,699)
			$ - - - - - - - (740) - - - 4,779 (23,273)	$ - - - - - - - - - - - - -
			$(19,234)	$-

6 5

SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements

(Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

For the years ended December 31, 2022

Recognized in other comprehensive income	Directly recognized in Equity	Ending balance
$ - - - - - - - (3,579) - - - 2,050 109,196	$ - - - - - - - - - - - - -	$1,248 (246) 1,284 2,134 2,208 12,049 11,292 86 (34,186) 713 2,662 431 (80,965)
$107,667	$-	$(81,290)

		$34,107
		$(115,397)

F. The assessment of income tax returns

As of December 31, 2023, the Company’s income tax returns through 2021 have been assessed and approved by the tax authority

20. Earnings per share

Basic earnings per share is calculated by dividing the net profit for the period attributable to ordinary equity holders of the parent by the weighted

6 6

SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements

(Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

average number of ordinary shares outstanding during the period.

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

(1) Basic earnings per share The net profit for the period attributable to ordinary equity holders of the parent (in thousand NTD) The weighted average number of ordinary shares for EPS (in thousands of shares) Basic earnings per share (NT$) (2) Diluted earnings per share The net profit for the period attributable to ordinary equity holders of the parent (in thousand NTD) The net profit for the period attributable to ordinary equity holders of the parent after adjusting for the dilution effect (in thousand NTD) The weighted average number of ordinary shares for EPS (in thousands of shares) Dilution effect Employee bonus – share (in thousands of shares) The weighted average number of ordinary shares after adjusting for the dilution effect (in thousands of shares) Diluted earnings per share (NT$)	For theyears ended December 31	For theyears ended December 31
	2023 $260,988 159,421 $1.64 $260,988 $260,988 159,421 819 160,240 $1.63	2022
		$768,276
		159,421
		$4.82
		$768,276
		768,276
		159,421
		1,732
		161,153
		$4.77

After the reporting period but before the approval and publication of the financial statements, there have been no other transactions that change significantly the number of ordinary shares or potential ordinary shares at the end of the period.

6 7

SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements

(Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

VII. Information on related party transactions

During the financial reporting period, the related parties who enter into transactions with the Company are as follows:

Names of related parties and description of relationship

Names of relatedparties	The relationshipwith the Group
Siward Technology Co., Ltd	The Company’s subsidiary
SCT USA Inc.	The Company’s subsidiary
SE Japan CO.	The Company’s subsidiary
Apex Optech Corproation	The Company’s subsidiary
Securitag Assembly Group Co.,	The Company’s associate
Ltd.
SAG Japan Co., Ltd	The Company’s associate
Rakon Limited	The Company’s substantive related party
Rakon France SAS	The Company’s substantive related party

Significant transactions with related parties

1. Sales revenue

For the years ended December 31

The Company’s subsidiary Siward Technology Co., Ltd Other The Company’s associate Securitag Assembly Group Co., Ltd. Substantive related party Rakon Limited Others Total	2023	2022
	$37,475 3,006 - 80,879 8,532	$47,045 8,257 50 216,627 11,615
	$129,892	$283,594

The prices at which the Company sells goods to a related party are by reference to the market conditions and are negotiated by both parties. The outstanding payments at the end of the year are unsecured, no interest, and must be settled in cash. No guarantee is not received for trade receivables from related parties.

6 8

SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements (Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

2. Purchases

Purchases
The Company’s subsidiary Siward Technology Co., Ltd Other The Company’s associate Securitag Assembly Group Co., Ltd. Substantive related party Rakon Limited Total	For theyears ended December 31
	2023	2022
	$401,554 4,118 - 10,209 $415,881	$635,386 2,847 490 16,036 $654,759

The prices at which the Company purchases goods from a related party are by reference to the market conditions and are negotiated by both parties. The payment terms for the Company to purchase from a related party are comparable to those of general suppliers.

3. Accounts receivable – related party

Accounts receivable – related party
The Company’s subsidiary Siward Technology Co., Ltd Other Substantive related party Rakon Limited Others Total Accounts payable – related party The Company’s subsidiary Siward Technology Co., Ltd Other Substantive related party Rakon Limited Total	December 31, 2023	December 31, 2022
	$11,159 428 17,592 1,108	$15,320 431 45,352 594
	$30,287	$61,697
	December 31, 2023 $63,742 2,674 - $66,416	December 31, 2022
		$86,447 2,083 1,385
		$89,945

4. Accounts payable – related party

6 9

SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements (Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

Other accounts payable

Other accounts payable
The Company’s subsidiary	December 31, 2023 $22,907	December 31, 2022
		$19,439

Commission expense

The Company’s subsidiary

Other expense The Company’s subsidiary 8. Technical support expense The Company’s subsidiary 9. Service expense The Company’s subsidiary 10. Other income

The Company’s subsidiary The Company’s associate Substantive related party Total

For theyears ended December 31	For theyears ended December 31
2023 $9,476	2022
	$15,864

For theyears ended December 31	For theyears ended December 31
2023 2022 $12,962 $11,044 For theyears ended December 31	2022
	$11,044
2023 2022 $2,543 $2,590 For theyears ended December 31	2022
	$2,590
2023 $13,086	2022
	$12,577

For theyears ended December 31	For theyears ended December 31
2023 $587 689 187 $1,463	2022
	$738 358 1,677
	$2,773

11.Rewards of the Group’s key management personnel

Short-term employee benefits Post-employment benefits Total	For theyears ended December 31	For theyears ended December 31
	2023 $25,885 639 $26,524	2022
		$46,467 418
		$46,885

7 0

SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements

(Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

VIII. Pledged assets

The Group has the following assets that are used as collateral:

Item Property, plant and equipment – land Property, plant and equipment – buildings Property, plant and equipment – machinery equipment Property, plant and equipment – other equipment Total	Carrying	amount December 31, 2022 $300,991 155,847 488,440 346 $945,624	Collateralized debt
	December 31, 2023 $300,991 151,314 421,505 253 $874,063
			Long-/short-term borrowing Long-/short-term borrowing Long-term debt borrowing Long-term borrowing

IX. Material contingent liabilities and unrecognized contractual commitments

As of December 31, 2023 and 2022, the guaranteed notes issued by the Company due to bank loans were NT$1,263,110 thousand and NT$1,263,110 thousand, respectively.
The Company and its subsidiaries provide endorsements or guarantees for related parties. For details please refer to Note XIII. 1. (2).

X. Losses due to major disasters

No such matter.

XI. Significant subsequent events

No such matter.

7 1

SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements (Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

XII. Others

(I) Financial instruments

1. Types of financial instruments

Types of financial instruments
Financial assets Financial instruments measured at fair value through other comprehensive income Financial assets measured at amortized cost Cash and cash equivalents (exclusive of cash on hand) Financial assets measured at amortized cost Notes receivable and accounts receivable Other receivables Subtotal Total Financial liabilities Financial liabilities measured at amortized cost Payables Other payables Less: Long-term borrowing (including current portion) Lease liability Total	December 31, 2023 $678,696 842,478 - 554,303 6,711 1,403,492 $2,082,188 December 31, 2023 $150,142 195,769 376,320 31,911 $754,142	December 31, 2022
		$562,334 1,192,853 - 572,255 7,102
		1,772,210
		$2,334,544
		December 31, 2022
		$143,882 250,876 704,000 39,939
		$1,138,697

2. Financial risk management objectives and policies

The Company’s financial risk management objectives are primarily to manage market risk, credit risk, and liquidity risk related to operating activities. The Company identifies, measures, and manages the above-mentioned risks in accordance with the Company’s policies and risk preference.

The Company has established appropriate policies, procedures, and internal controls for the above-mentioned financial risk management in

7 2

SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements (Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

accordance with relevant regulations, and important financial activities should be reviewed by the Board of Directors and the Audit Committee in accordance with relevant regulations and internal control systems. During the execution of financial management activities, the Company should strictly comply with the relevant regulations for financial risk management it formulated.

3. Market risk

The Company’s market risk is the risk that the fair value or future cash flows will fluctuate because of changes in market prices. Market risk mainly includes exchange rate risk, interest rate risk, and other price risks (such as equity price risk).

In practice, the situation that only a single risk variable changes rarely occurs, and changes in risk variables are usually correlated. However, the sensitivity analysis of each of the following risks does not take into consideration the interaction effects of the relevant risk variables.

Foreign exchange risk

The Company’s foreign exchange risk is mainly related to operating activities (where the currency used for revenue or expenses is different from the functional currency of the Company) and net investment in foreign operations.

Part of the Company’s Some foreign currency receivables and foreign currency payables are in the same currency, a considerable part of the position will have the effect of natural hedge. For part of foreign currency payments, foreign exchange forward contracts are used to manage exchange rate risks. Based on the above-mentioned natural hedging and that the approach to managing exchange rate risks by foreign exchange forward contracts do not meet hedge accounting requirements, and thus hedge accounting is not adopted. In addition, the net investment in foreign operations is a strategic investment; therefore, the Company did not hedge against it.

The sensitivity analysis of the Company’s exchange rate risk mainly focuses on the major foreign currency monetary items at the end of the financial reporting period, and the impact of the related foreign currency appreciation/depreciation on the Company’s profit or loss and equity. The Company’s exchange rate risk is mainly affected by fluctuations of U.S. dollar exchange rate. The information on the sensitivity analysis is shown as follows:

When New Taiwan dollar appreciates/depreciates by 1% against the

7 3

SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements (Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

US dollar, the profit and loss of the Company for the years ended December 31, 2023 and 2022 will decrease/increase by NT$6,557 thousand and NT$14,367 thousand, respectively.

Interest rate risk

Interest rate risk is the risk of fluctuations in the fair value or future cash flows of financial instruments as a result of changes in market interest rates. The Company’s risk of changes in interest rates mainly arises from borrowings with floating interest rates and fixed interest rates. However, the Company had no risks of cash flows with significant changes in interest rates for the years ended December 31, 2023 and 2022.

Equity price risk

The fair value of the Company’s listed and unlisted equity securities is susceptible to market price risk arising from uncertainties about future values of the investment securities. The Company’s listed and unlisted equity securities are classified under held for trading financial assets measured at fair value through profit or loss and financial assets measured at fair value through other comprehensive income. The Company 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 Company’s senior management on a regular basis. The Company’s board of directors reviews and approves all equity investment decisions.

At the reporting date, a change of 1% in the price of the listed equity securities measured at fair value through other comprehensive income could have an impact of NT$6,715 thousand and NT$5,560 thousand on the equity attributable to the Company for the years ended December 31, 2023 and 2022, respectively.

If the fair value hierarchy of other equity instruments or derivatives linked to equity instruments belongs to Level 3, please refer to Note XII. 9 for sensitivity analysis information

4. Credit risk management

Credit risk refers to the risk that the counterparties do not perform their obligations based on the contractual terms, resulting in the risk of financial loss. The Company’s credit risk arises from operating activities (mainly accounts receivable and notes) and financial activities (mainly cash in banks and various financial instruments).

Each business unit manages customer credit risk in compliance with

SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements (Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

the Company’s policies, procedures, and controls on customer credit risk. The credit risk assessment of all customers takes into account the customer’s financial status, ratings from credit rating agencies, past historical transaction experience, current economic environment, the Company’s internal rating criteria, and other factors. In addition, the Group also uses certain credit enhancement instruments (such as unearned sales revenue, or insurance) when appropriate to reduce the credit risk of specific customers.

In addition, the Company also uses certain credit enhancement tools (such as advance payment and insurance, etc.) when appropriate to reduce the credit risk of specific customers. As assessed by the Group, there is no significant concentration of credit risk.

The Company’s Finance Department manages the credit risk of cash in banks, fixed income securities, and other financial instruments in accordance with the Company’s policies. Because the Company’s counterparties are, determined by internal control procedures, banks with good credit and financial institutions, corporate organizations, and government agencies with investment grade, and there are no significant performance concerns; therefore, no significant credit risk exists.

5. Liquidity risk management

The Company maintains financial flexibility through cash and cash equivalents, highly liquid securities, and bank loans. The following table summarizes the maturity of payments under contracts of financial liabilities of the Company, and is prepared based on the earliest date on which repayment may be required and the undiscounted cash flows thereof. The amounts listed also include the agreed interest. For interest cash flows paid at floating rates, the undiscounted interest amount is derived from the yield curve at the end of the reporting period.

Non-derivative financial liabilities

December 31, 2023 Payables Other payables Long-term borrowing– bank Lease liability	Less than a year $150,142 195,769 218,803 8,550	2 to 3years - - 163,397 7,958	4 to 5years - - - 7,958	over 5 years - - - 8,953	Total
					$150,142 195,769 382,200 33,416

7 5

SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements

(Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

December 31, 2022 Payables Other payables Long-term borrowing– bank Lease liability	Less than a year $143,882 250,876 180,583 8,550	2 to 3years - - 535,525 12,529	4 to 5years - - - 7,958	over 5 years - - - 12,932	Total
					$143,882 250,876 716,108 41,969

Derivative financial liabilities

None

Reconciliation of liabilities arising from financing activities

Information on the reconciliation of liabilities during the years ended December 31, 2023:

January 1, 2023 Cash flows Others December 31, 2023	Long-term borrowing (including the current portion)	Lease liability	Total liabilities arising from financingactivities
	$704,000 (327,680) -	$39,939 (8,028) -	$743,939 (335,708) -
	$376,320	$31,911	$408,231

Information on the reconciliation of liabilities during the years ended December 31, 2022:

January 1, 2022 Cash flows Others December 31, 2022	Long-term borrowing (including the current portion)	Lease liability	Total liabilities arising from financingactivities
	$738,140 (34,140) -	$45,991 (7,912) 1,860	$784,131 (42,052) 1,860
	$704,000	$39,939	$743,939

Fair value of financial instruments
(1) Valuation techniques and assumptions used to determine fair value

Fair value refers to 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 methods and

7 6

SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements (Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

assumptions used by the Company to measure or disclose the fair value of financial assets and financial liabilities are as follows:

A. The carrying value of cash and cash equivalents, receivables, payables, and other current liabilities reasonably approximates to fair value mainly due to the relatively short periods to maturity of such instruments.
B. The fair value of financial assets and liabilities traded in active markets with standard terms and conditions are determined with reference to quoted prices in active markets (such as TWSE or TPEx listed shares, beneficiary certificates, bonds, or futures).
C. The fair value of equity instruments that are not traded in an active market (such as private placement of TWSE or TPEx listed shares, shares of public companies and non-public companies) is estimated by using the market approach. The fair value is estimated based on the prices and other relevant information resulting from the market transactions of equity instruments of the same or comparable company (such as the discount for lack of liquidity, price-to-earnings ratio of a similar company’s stock, price-to-book ratio of a similar company’s stock, or other input value).
D. The fair value of investment in debt instruments, bank loans, bonds payable, and other non-current liabilities is determined by counterparties’ quotes or valuation techniques which are based on the discounted cash flow analysis. Assumptions for items such as interest rates and discount rates are mainly by reference to relevant information of similar instruments (such as TPEx reference yield curve, Reuters commercial paper rates and credit risk, and other information).
E. The fair value of derivative instruments without quoted price in an active market, among which the derivative instruments other than options, is calculated by counterparties’ quotes or yield curves to which the duration is applicable with the discounted cash flow analysis. The fair value of the derivative instruments that are options is calculated by counterparties’ quotes, appropriate option pricing models (such as Black-Scholes Model), or other valuation methods (such as Monte Carlo Simulation).

(2) The fair value of financial instruments measured at amortized cost

7 7

SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements (Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

The Company’s carrying amounts of financial assets and financial liabilities measured at amortized cost approximate the fair value.

(3) Relevant information on the fair value hierarchy of financial instruments

For detailed information on the fair value hierarchy of financial instruments of the Group, please refer to Note XII. 9.

Derivative Instruments

As of December 31, 2023 and 2022, the Company did not hold any derivative instruments that did not qualify for hedge accounting and had not yet expired.

9. Fair value hierarchy

(1) Definition of fair value hierarchy

All assets and liabilities for which fair value is measured or disclosed in fair value are categorized in the fair value hierarchy to which they belong based on the lowest level inputs that are significant to the overall fair value measurement. The inputs for each level are as follows:

Level 1: Quoted prices (unadjusted) available on the measurement date for identical assets or liabilities in active markets
Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly
Level 3: Unobservable inputs for assets or liabilities

For assets and liabilities that are recognized in the financial statements on a recurring basis, their classification is reassessed at the end of each reporting period to determine whether transfers between levels of the fair value hierarchy have occurred.

(2) Information on the fair value measurement and hierarchy

The Company has no assets measured at fair value on a nonrecurring basis. The information on the fair value hierarchy of the assets and liabilities measured at fair value on a recurring basis is listed as follows:

7 8

SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements

(Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

December 31, 2023: Assets measured at the fair value: Measured at fair value through other comprehensive income Stock December 31, 2021: Assets measured at the fair value: Measured at fair value through other comprehensive income Stock	Level 1	Level 2	Level3	Total
	$671,512 Level 1	$ - Level 2	$7,184 Level 3	$678,696 Total
	$555,987	$ -	$6,347	$562,334

Transfers between Level 1 and Level 2 of the fair value hierarchy

During the years ended December 31, 2023 and 2022, there was no transfer between Level 1 and Level 2 of the fair value hierarchy of the Company’s assets and liabilities measured at fair value on a recurring basis.

Details of the changes to the recurring fair value measurements categorized in Level 3 of the fair value hierarchy

Reconciliation of beginning and closing balances of the Company’ assets and liabilities measured at fair value on a recurring basis categorized in Level 3 of the fair value hierarchy is listed as follows:

categorized in Level 3 of the follows:	fair value hierarchy is listed as	fair value hierarchy is listed as	fair value hierarchy is listed as
Beginning balance Total profit (loss) recognized from January 1 to December 31: Recognized in profit or loss (presented in “other gains or losses”) Recognized in other comprehensive income (presented in “gains or Losses on Valuation of Investment in equity instruments at fair value through other comprehensive income”) Dispose/settle Ending balance	Assets
	Financial instruments measured at fair value through other comprehensive income
		Stock
		2023 $6,347 - 837 - $7,184	2022 $7,505 - (1,158) - $6,347

7 9

SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements

(Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

Information on significant unobservable inputs for Level 3 of the fair value hierarchy

The significant unobservable inputs used in the fair value measurement to the Companys’ assets and liabilities measured at fair value on a recurring basis categorized in Level 3 of the fair value hierarchy are listed as the following:

As of December 31, 2023:

Financial assets: Measured at fair value through other comprehensive income Stock Financial assets: Measured at fair value through other comprehensive income Stock	Valuation technique	Significant unobservable input	Quantitative information	Relationship between input value and fairvalue
	Market approach Discount for lack of liquidity 30% As of December 31, 2022 Valuation technique Significant unobservable input Quantitative information

As of December 31, 2023
Assets with fair value disclosure only: Investment properties (For details, please refer to Note VI.) Investments accounted for using the equity method (For details, please refer to Note VI.)	Level 1	Level 2	Level 3	Total
	$ - 616,457	$ - -	$54,892 -	$54,892 616,457

8 0

SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements

(Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

As of December 31, 2022

As of December 31, 2022
Assets with fair value disclosure only: Investment properties (For details, please refer to Note VI.) Investments accounted for using the equity method (For details, please refer to Note VI.)	Level 1	Level 2	Level 3	Total
	$ - 502,384	$ - -	$55,284 -	$55,284 502,384

Information on the foreign-currency-denominated financial assets and liabilities that have significant influence

The Information on the Company’s foreign-currency-denominated financial assets and liabilities that have significant influence is as follows:

follows:
Financial assets Monetary items: USD JPY RMB Financial liabilities Monetary items: USD JPY	December 31,2023 Foreign currency Exchange rate New Taiwan dollar $24,382 30.7350 $749,381 333,028 0.2173 72,367 16,192 4.3338 70,173 3,049 30.7350 93,711 355,985 0.2173 77,356		Expressed in thousand December 31,2022
	Foreign currency $24,382 333,028 16,192 3,049 355,985	Exchange rate 30.7350 0.2173 4.3338 30.7350 0.2173	Foreign currency $48,574 342,654 17,329 1,789 427,020	Exchange rate 30.7080 0.2324 4.4175 30.7080 0.2324	New Taiwan dollar
					$1,491,610 79,633 76,551 54,937 99,239

The above information is disclosed based on the foreign-currency-denominated carrying amounts (translated into functional currencies). There are a wide variety of functional currencies of the entities in the Company; therefore, it is not possible to disclose the information on the foreign exchange gains and losses on the monetary financial assets and financial liabilities by foreign currencies that have significant influence. The Company’s foreign exchange gains for the years ended December 31, 2023 and 2022 were NT$6,822 thousand and NT$142,450 thousand, respectively.

11. Capital management

The primary objective of the Company’s capital management is to maintain sound credit ratings and good capital ratio to support business operations and the maximization of shareholders’ interests. The

8 1

SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements

(Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

Company manages and adjusts the capital structure according to economic conditions, and may achieve the purpose of maintaining and adjusting the capital structure by adjusting dividend payments, returning capital, or issuing new shares.

XIII. Information disclosed in the notes

1. Information on significant transactions

(1) Loans to other parties: None.

(2) Endorsements/guarantees for others

No. (Note 1)	Company making the endorsement/ guarantee (company name)	Counterparty of the endorsement/guarantee	Counterparty of the endorsement/guarantee	The maximum amount of endorsements/ guarantees permitted for a single enterprise (Note 3)	The maximum balance of endorsements/ guarantees in the current period (Note 4)	Ending balance of endorsements/ guarantees in the current period (Note 5)	Actual drawdown amount (Note 6)	The amount of an endorsement/ guarantee with property as security	The percentage of the cumulative amount of endorsements/ guarantees accounted for the net worth as stated in its latest financial statement	The maximum amount of endorsements/ guarantees (Note 3)	The amount that the Company makes endorsements/ guarantees for its subsidiaries (Note 7)	The amount that its subsidiaries makes endorsements/ guarantees for the Company (Note 7)	The amount of endorsements / guarantees in the Mainland Area (Note 7)
		Company name	Relationship (Note 2)
0	SIWARD Crystal Technology Co., Ltd.	SIWARD TECHNOLOGY CO., LTD.	2	$612,485 (Note 8)	$118,000	$118,000	$75,8794	$ -	2.89%	$1,633,293 (Note 9)	Y	N	N

Note 1: The description of the “No.” column is as follows:

(1) For issuers, please fill in with “0.”
(2) Invested companies are numbered sequentially starting with the Arabic number 1 by company.
Note 2: There are seven types of relationship between the company making an endorsement/guarantee and the counterparty of the endorsement/guarantee. Please specify one of the type codes as follows:
(1) A company with which it does business
(2) A company in which the company directly and indirectly holds more than 50 percent of the voting shares
(3) A company that directly and indirectly holds more than 50 percent of the voting shares in the company
(4) A company in which the company holds, directly or indirectly, 90% or more of the voting shares
(5) A company 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
(6) A company where all capital contributing shareholders make endorsements/ guarantees for their jointly invested company in proportion to their shareholding percentages
(7) 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: The maximum amount of endorsements/guarantees permitted for a single entity and the limit on the amounts of endorsements/guarantees stipulated by the company in accordance with the Operational Procedures for Endorsements/Guarantees should be provided, and the single entity and the calculation method for the aggregate endorsement/guarantee amount should be described in the Remark column.
Note 4: The maximum balance of endorsements/guarantees for others in the current year.
Note 5: The amount approved by the board of directors should be provided. However, if the board of

8 2

SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements

(Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

directors authorizes the chairman of the board of directors for approval in accordance with Subparagraph 8, Article 12 of the Regulations Governing Loaning of Funds and Making of Endorsements/Guarantees by Public Companies, the amount of authorization by the chairman of the board should be provided.

Note 6: The actual drawdown amount within the balance of endorsements/guarantees available for the company for which the endorsements/guarantees are made should be provided.

Note 7: “Y” is required for endorsements/guarantees that the TWSE- and TPEx-listed parent company makes endorsements/guarantees for its subsidiaries, that the subsidiaries make endorsements/guarantees for the TWSE- and TPEx-listed parent company, and in the Mainland Area only.
Note 8: The maximum amount of endorsements/guarantees permitted for a single entity is calculated based on 15% of the Company’s net worth of NT4,083,232 thousand as audited by accountants on December 31, 2023.

Note 9: The maximum aggregate amount is calculated based on 40% of the Company’s net value of Nt$4,083,232 thousand as audited by accountants on December 31, 2023.

(3) Holding of securities at the end of the period (excluding the portion held due to investment in a subsidiary or an associate, and the portion held due to an interest in a joint venture):

Holding company	Type and name of securities	Relationship with the issuer of securities	Accounting for		End of theperiod	End of theperiod
				Number of units/shares	Carrying amount:	Ratio (%)	Fair value
SIWARD Crystal Technology Co., Ltd.	Stock DBS Bank Hua Chung Venture Capital Co., Ltd. Fong Han Electornic C0., Ltd. Vision Display Symstem Co, Ltd. Branchy Technology Co., Ltd. Imagic Technology Co., Ltd. Fujiter Semiconductor Co.,Ltd. Iglant Optics C0.,Ltd. Ledray Technology Co., Ltd. Axel Biotechnology Inc.	Non-related party Non-related party Non-related party Non-related party Non-related party Non-related party Non-related party Non-related party Non-related party Non-related party	Financial assets at fair value through profit or loss – current Financial assets at fair value through other comprehensive income – non-current Financial assets at fair value through other comprehensive income – non-current Financial assets at fair value through other comprehensive income – non-current Financial assets at fair value through other comprehensive income – non-current Financial assets at fair value through other comprehensive income – non-current Financial assets at fair value through other comprehensive income – non-current Financial assets at fair value through other comprehensive income – non-current Financial assets at fair value through other comprehensive income – non-current Financial assets at fair value through other comprehensive income – non-current	42,637 12,036 525,000 53,600 134,601 6,375 206,374 9,000 360,000 425,000	$ - - - - - - 1,970 221 - 5,214	- % 6.66% 3.00% 0.45% 1.94% 0.03% 0.95% 0.03% 14.88% 19.32%	$ - - - - - - 1,970 221 - 5,214

8 3

SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements

(Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

Type and name of securities	Relationship with the issuer of securities	Accounting for		End of theperiod	End of theperiod
			Number of units/shares	Carrying amount:	Ratio (%)	Fair value
Rakon Limited	Related party	Financial assets at fair value through other comprehensive income – non-current	28,016,681 Total	671,291	12.23%	671,291
				$678,696

(4) Aggregate purchases or sales of the same securities in the current period reaching NT$300 million or 20 percent of paid-in capital or more: None.
(5) Acquisition of real estate reaching NT$300 million or 20 percent of paid-in capital or more : None.
(6) Disposal of real estate reaching NT$300 million or 20 percent of paid-in capital or more: None.
(7) Purchases or sales of goods from or to related parties reaching NT$100 million or 20 percent of paid-in capital or more

The company making purchases (sales)	Counterparty	Relationship	Transa	Transa	ction condition		Transaction ter general transact the rea	ms differ from ion terms and son	Notes and accounts receivables (payables)	Notes and accounts receivables (payables)	Remark
			Purch ases (sales)	Amount	Percentage of total purchases (sale)	Credit term	Unit price	Credit term	Balance	Percentage of of total bills receivable (payable) and accounts
SIWARD Crystal Technology Co., Ltd.	SIWARD TECHNOLOG Y CO., LTD.	Parent company and subsidiary	Purch ases	$401,554	48.68%	60 days	No general transaction price is available for comparison.	-	$(63,742)	(42.45)%

(8) Accounts receivable from related parties reaching NT$100 million or 20 percent of paid-in capital or more: None.
(9) Trading in derivative instruments: Please refer to Note XII (I).8 to the Financial Statements.
Information on investees

Relevant information on the name, location, principal business activities, original investment amount, shareholding at the end of the period, profit or loss for the period, and recognized investment gain or loss of the investee company (exclusive of investee companies in the Mainland Area):

8 4

SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements

(Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

Name of Investor	Name of invested company	Location	Principal business activities	Original investment amount	Original investment amount	Held bythe Company	Held bythe Company	Held bythe Company	Profit or loss for the period of the invested company	Gain or loss on investments recognized by the Company	Remark
				End of the current period	End of the previous year	Number of shares	Ratio	Carrying amount:
SIWARD Crystal Technology Co., Ltd.	SIWARD TECHNOLOGY CO., LTD.	Japan	Engaged in the manufacture and sale of quartz crystals, miniature temperature-compens ated oscillators, and surface acoustic wave filters	$711,144 (JPY2,397,200,000)	$711,144 (JPY2,397,200,000)	9,300,000	100%	$315,282	$5,074 (JPY22,866,760)	$8,829 (including unrealized gains on transactions of associates $3,755)	Subsidiar y
SIWARD Crystal Technology Co., Ltd.	SCT USA INC.	U.S.A.	Providing after-sales services	$3,285 (USD100,000)	$3,285 (USD100,000)	200	100%	$13,747	$1,761 (USD56,541)	$1,761	Subsidiar y
SIWARD Crystal Technology Co., Ltd.	APEX OPTECH CO.	British Virgin Islands	Financial investment	$50,802 (USD1,495,392)	$50,802 (USD1,495,392)	2,884,541	33.93%	$2,178	$(1,669)	$(520)	Subsidiar y
SIWARD Crystal Technology Co., Ltd.	Apex Optech Corporation	Hsinchu County Jhubei City	Engaged in the manufacture of electronic components, wholesale and retail of electronic materials, and product design and international trade business	$177,246	$177,246	2,194,476	87.78%	$37,118	$394	$(110)	Subsidiar y
SIWARD Crystal Technology Co., Ltd.	Securitag Assembly Group Co., Ltd.	Taichung City Dali Dist.	Engaged in the manufacture and sale of electronic components	$145,804	$45,134	5,761,280	13.63%	$205,547	$169,776	$23,138	The investee company using the equity method for valuation
SIWARD TECHNOLOGY CO., LTD.	SE JAPAN CO.	Japan	Engaged in the manufacture and sale of quartz crystal rods and chips	JPY28,000,000	JPY28,000,000	400	100%	$13,742 (JPY63,238, 774)	$3,783 (JPY17,047,299)	Not applicable	Sub-subsi diary
Apex Optech Corporation	APEX OPTECH CO.	British Virgin Islands	Financial investment	$129,935 (USD3,825,000)	$129,935 (USD3,825,000)	4,335,000	51%	$(2,085)	$(1,532)	Not applicable	Sub-subsi diary

3. Information on investments in the Mainland Area

(1) The Company invests in the Mainland Area. The relevant information is as follows:

Name of the investee company Company name	Principal business activities and influence on the company operations	Paid-in capital	Method of investment	End of the current period The accumulated investment amount remitted from Taiwan at the beginning of the currentperiod	The investm recovered i	ent amount remitted or n the currentperiod	The accumulated investment amount remitted from Taiwan at the end of the current period	Profit or loss during the period of the investee company	Shareholding ratio of the Company’s direct or indirect investments	Gain or loss on investments recognized in the current period (Note 5)	Carrying amount of the investment at the end of the period	Repatriated investment gains as of the current period
					Outward remittance	Recovery
SIWARD Crystal Technology (Dongguan) Co., Ltd. (Note 1)	Manufacture and sale of quartz crystals, crystal oscillators, and crystal filters	RMB 18,202,104	Direct investments in the companies in the Mainland Area	$63,848 (USD2,131,815)	-	-	$63,848 (USD2,131,815	) $ - (USD0)	100%	$ -	$ -	-
Apex Optech Corporation (Wuxi Factory) (Note 1)	Manufacture and sale of quartz chips and crystal rods	RMB 65,788,141	Reinvest in the company in the Mainland Area through the company invested and established in a third area	$50,102 (USD1,672,858)	-	-	$50,102 (USD1,672,858	) $(1,532) (RMB348,222)	78.70%	Included in the subsidiary	$2,380	-
SIWARD Electronic Technology (Shenzhen) INC..	Wholesale and related supporting business of electromechanical equipment, electronic components, and accessories	RMB 3,000,000	Direct investments in the companies in the Mainland Area	$14,529 (USD462,600)	-	-	$14,529 (USD462,600)	$(864) (RMB196,432)	100%	$(864)	$8,768	-

8 5

SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements

(Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

The accumulated investment amount remitted from Taiwan to the Mainland Area at the end of the currentperiod	The investment amount approved by the Investment Board, Ministry of Economic Affairs (Note 6)	The limit on the amount of the Company’s investment in the Mainland Area
		Net worth * 60%
NT$128,479 thousand (US$4,267,273)	US$17,268,532.19	NT$2,449,939 thousand (Note 4)

(Note 1): Information on the indirect investment in Apex Optech Corporation (Wuxi factory) in Mainland Area through the equity of Apex Optech Corporation and APEX OPTECH CO. in British Virgin Islands.

(Note 2): The limit on the amount of investment in the Mainland Area should be 60% of the net worth as the upper limit of the percentage in accordance with the requirements of the Investment Board, Ministry of Economic Affairs.

(Note 3): The financial statements that have been audited by CPA.

(2) The significant transactions with investee companies in the Mainland Area, either directly or indirectly through a third area: None.
Information on major shareholders

As of December 31, 2023, the Company had no shareholders who hold 5 percent or more of the issuer’s equity.

8 6

SIWARD CRYSTAL TECHNOLOGY CO., LTD.

THE CONTENTS OF STATEMENTS OF MAJOR ACCONTING ITEMS

Item	Statement Index
Statement of cash and cash equivalents	Statement 1
Statement of account receivables	Statement 2
Statement of inventories	Statement 3
Statement of changes in financial assets at fair value through other comprehensive income - non-current	Statement 4
Statement of changes in investments accounted for using equity method	Statement 5
Statement of changes inproperty,plant and equipment	Note VI.6
Statement of changes in accumulated depreciation of property, plant and equipment	Note VI.6
Statement of changes in right-of-use asset	Statement 6
Statement of changes in accumulated depreciation of right-of-use asset	Statement 6
Statement of changes in investment properties	Note VI.7
Statement of changes in accumulated depreciation of investment properties	Note VI. 7
Statement of changes in intangible asset	Note VI.8
Statement of other non-current asset	Note VI.9
Statement of deferred income tax assets	Note VI.19
Statement of accountpayables	Statement 7
Statement of otherpayables	Statement 8
Statement of net defined benefit liability	Note VI.11
Statement of lease liability	Statement 9
Statement of long-term loans	Note VI.10
Statement of deferred income tax liabilities	Note VI.19
Statement of net revenue	Statement 10
Statement of cost ofgoods sold	Statement 11
Statement of manufacturingexpenses	Statement 12
Statement of operatingexpenses	Statement 13
Statement of Functional summary of employee benefits, depreciation, depletion and amortization expenses incurred in the currentperiod	Note VI.16
Statement of othergain and losses	NoteVI.17

STATEMENT 1

SIWARD CRYSTAL TECHNOLOGY CO., LTD

CASH AND CAHS EQUIVALENTS DECEMBER 31, 2023

(In Thousands of New Taiwan Dollars, and Foreign Currency)

Item	Explanation	Amount	Note
Cash on hand Cash in banks Demand deposits Time deposits Foreign-currency deposits Total	Including TWD 202,000 thousand RMB 10,000 thousand Including USD 2,560 thousand RMB 6,154 thousand JPD 278,033 thousand	$465 425,844 245,338 171,296 $843,156

STATEMENT 2

SIWARD CRYSTAL TECHNOLOGY CO., LTD

STATEMENT OF ACCOUNT RECEIVALBES DECEMBER 31, 2023

(In Thousands of New Taiwan Dollars)

Item	Amount	Amount
	Subtotal	Total
Related parties Less`：`Allowance for impairment loss Subtotal Third parties A Company B Company C Company Others Less`：`Allowance for impairment loss Add`：`Allowance for foreign exchange loss Subtotal Total	$30,287 69,843 61,286 36,577 392,293	$ -
		30,287
		(16,620) (19,363)
		524,016
		$554,303

Note: Each of the accounts was less than 5% of the total account balance.

STATEMENT 3

SIWARD CRYSTAL TECHNOLOGY CO., LTD

STATEMENT OF INVENTORIES

DECEMBER 31, 2023

(In Thousands of New Taiwan Dollars)

(In Thousands	of New Taiwan Dollars)
Item	Cost	Market Value
Raw materials Supplies and spare parts Work in process Semi-finished goods Finished goods(including purchased components) Total	$313,884 186,540 127,718 100,235 173,822 $902,199	$353,735 188,706 127,718 103,988 187,148 $961,295

Note: The market value is based on net realizable value. Please refer to Note IV.10

STATEMENT 4

SIWARD CRYSTAL TECHNOLOGY CO., LTD

CHANGES IN FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME-NON-CURRENT FOR THE YEARS ENDED DECEMBER 31, 2023

(In Thousands of New Taiwan Dollars)

BeginningBalance	BeginningBalance	Increase	Increase	Decrease	Decrease		Ending	Balance	Pledge or security
Shares	Amount	Shares	Amount	Shares	Amount	Re-measure	Shares	Amount
12,036 525,000 53,600 134,601 6,375 206,374 9,000 360,000 425,000 28,016,681	$ - - - - - 1,310 450 - 5,037 55,537	- - - - - - - - -	$ - - - - - - - - - -	- - - - - - - -	$ - - - - - - - - - -	$ - - - - 660 (229) - 177 115,754 $116,362	12,036 525,000 53,600 134,601 6,375 206,374 9,000 360,000 425,000 28,016,681	$ - - - - - 1,970 221 - 5,214 671,291	- - - - - - - - - -
	$562,334		$ -		$-			$678,696

STATEMENT5

SIWARD CRYSTAL TECHNOLOGY CO., LTD

CHANGES IN INVESTEMENTS ACCOUNTED FOR BY THE EQUITY METHOD FOR THE YEARS ENDED DECEMBER 31.2023

(In Thousands of New Taiwan Dollars)

Name of invested company	Beginning Balance	Beginning Balance	Increase	Increase	Decrease	Decrease		Ending Balance	Ending Balance	Market Price or Net Asset Value	Market Price or Net Asset Value	Pledge or Security
	Shares	Amount	Shares	Amount	Shares	Amount	Share	% of Ownership	Amount	Unit Price	Amount
Siward Technology Co.Ltd. Apex Optech Co. Apex Optech Corporation. SCT USA, Inc. Securitag Assembly Group Co., Ltd. SIWARD Electronic Technology (Shenzhen) Inc. Subtotal Less: cumulative impairment Tl	9,300,000 2,884,541 2,194,476 200 5,761,280 -	$330,498 2,720 37,257 11,999 195,252 9,805	- - - - - -	- 1,748 (Note 4) 10,495 (Note5)	- - - - - -	(15,216) (Note 1) (542) (Note 2) (139) (Note3) - - (1,037) (Note 6	9,300,000 2,884,541 2,194,476 200 5,761,280 -	100% 33.93% 87.78% 100% 13.63% 100%	$315,282 2,178 37,118 13,747 205,747 8,768		$315,282 2,178 37,118 13,747 616,457 8,767	- - - - - -
		587,531 (3,566)		12,243		(16,934)			582,840 (3,566)
		$583,965		$12,243		$(16,934)			$579,274		$993,550
ota

Note 1: Including investment gains 5,074 thousand, unrealized gains (losses) on transactions of associates 3,755 thousand, exchange differences on translating the financial statements of foreign operating (11,438) thousand and disposal of investments in equity instruments designated at fair value through other comprehensive income 337 thousand.

Note 2: Including investment losses (520) thousand and exchange differences on translating the financial statements of foreign operating (22) thousand. Note 3: Including investment losses (110) thousand and exchange differences on translating the financial statements of foreign operating (29) thousand. Note 4: Including investment gains 1,761 thousand and exchange differences on translating the financial statements of foreign operating (13) thousand.

Note 5: Including cash dividend (12,675) thousand, investment gains 23,138 thousand, exchange differences on translating the financial statements of foreign operating (21) thousand and Re-measurements of the defined benefit plan 53 thousand.

Note 6: Including investment losses (864) thousand and exchange differences on translating the financial statements of foreign operating (173) thousand.

STATEMENT 6

SIWARD CRYSTAL TECHNOLOGY CO., LTD

STATEMENT OF CHANGES IN RIGHT-OF-USE ASSET AND CHANGES IN ACCUMULATED DEPRECIATION OF RIGHT-OF-USE ASSET

FOR THE YEARS ENDED DECEMBER 31.2023

(In Thousands of New Taiwan Dollars)

Cost`：` January 1, 2023 Addition December 31, 2023 Depreciation and impairment`：` January 1, 2023 Depreciation for the current year December 31, 2023 Net carrying amount`：` December 31, 2023	Land $45,137 - $45,137 $14,554 3,882 $18,436 $26,701	Buildings $20,877 - $20,877 $12,526 4,176 $16,702 $4,175	Total
			$66,014 -
			$66,014
			$27,0808 8,058
			$35,138
			$30,876

STATEMENT 7

SIWARD CRYSTAL TECHNOLOGY CO., LTD

STATEMENT OF ACCOUNT PAYABLE DECEMBER 31, 2023

(In Thousands of New Taiwan Dollars)

Item	Amount	Amount
	Subtotal	Subtotal
Related parties SIWARD TECHNOLOGY CO., LTD. Others Add：Allowance for foreign exchange loss Third parties A Company B Company C Company Others Add：Allowance for foreign exchange loss Total	$63,742 2,674 21,502 21,285 15,074 25,918	$66,416 -
		66,416
		83,779 (2,183)
		81,596
		$148,012

Note: Each of the accounts was less than 5% of the total account balance.

STATEMENT 8

SIWARD CRYSTAL TECHNOLOGY CO., LTD

STATEMENT OF OTHER PAYABLES

DECEMBER 31, 2023

(In Thousands of New Taiwan Dollars)

Item	Amount
Payable salary and bonus Employees’ compensation payable Directors’ remuneration payable Others Total	$79,628 18,403 11,472 86,266 $195,769

Note: Each of the accounts was less than 5% of the total account balance.

STATEMENT 9

SIWARD CRYSTAL TECHNOLOGY CO., LTD

STATEMENT OF LEASE LIABILITY

DECEMBER 31, 2023

(In Thousands of New Taiwan Dollars)

Item	Explanation	Rental period	Discount rate	Ending balance
Land Building Total	Tainan Science Park land Hsinchu Science Park land Hsinchu Science Park building	From April 17, 2023 to March 31, 2031 From January 1, 2020 to December 31, 2024 From January 1, 2020 to December 31, 2024	1.44% 1.445% 1.445% Current Non-current	$27,377 238 4,296
				$31,911
				8,143 23,768
				$31,911

STATEMENT 10

SIWARD CRYSTAL TECHNOLOGY CO., LTD

OPERATING REVENUE

FOR THE YEARS ENDED DECEMBER 31.2023

(In thousands of New Taiwan Dollars, and thousands of pcs)

Item	Quantity	Amount
Quartz crystal products Others Total	710,828 162,113 872,941	$2,090,106 101,596 $2,191,702

STATEMENT 11

SIWARD CRYSTAL TECHNOLOGY CO., LTD

STATEMANT OF COST GOODS SOLD

FOR THE YEARS ENDED DECEMBER 31, 2023

(In thousands of New Taiwan Dollars)

Item	Amount	Note
1. Production cost Direct material： Beginning commodity Add：Commodity purchase Less：Ending commodity Purchase cost Beginning material Add：Material purchase Work in process transferred to materials Others Less: Ending material Cost of material sold Others Direct materials Direct labor Overhead Manufacturing cost Add: Beginning work in process Beginning Semi-finished products Purchases Finished product input Others Less: Ending work in process Ending Semi-finished products Work in process transferred to materials Semi-finished products sold Others Finished foods cost Add: Beginning finished goods Purchases Less: Ending finished goods Others Production cost 2. Cost of material sold 3. Cost of semi-finished goods sold 4. Cost of Supplies sold 5. Cost of other goods sold 6. Waste recovery cost 7. Unfavorable cost variance 8. Loss on physical inventory Total	$251 4,118 (251)
	4,118 375,481 410,640 109,061 62,167 (354,053) (68,003) (1,977) 533,316 225,483 552,507
	1,311,306 142,717 88,712 143,571 1,055,835 3,717 (127,718) (109,556) (109,061) (2,555) (7,776)
	2,389,192 192,133 146,884 (192,244) (5,025)
	1,475,105
	68,003 2,555 3,448 3,735 (4,429) 57,352 9,357
	$1,619,244

STATEMENT 12

SIWARD CRYSTAL TECHNOLOGY CO., LTD

STATEMENT OF MANUFACTURING EXPENSES FOR THE YEARS ENDED DECEMBER 31, 2023

(In thousands of New Taiwan Dollars)

Item		Amount	Note
Indirect labor Maintenance fee Utilities Depreciation Indirect materials Others Subtotal Less`：`Unallocated fixed manufacturing overhead transferred to cost of goods sold Total		$138,779 186,162 69,405 41,875 31,625 142,013 609,859 (57,352) 552,507	Each of the accounts was less than 5% of the total account balance.

STATEMENT 13

SIWARD CRYSTAL TECHNOLOGY CO., LTD

STATEMENT OF OPERATING EXPENSES

FOR THE YEARS ENDED DECEMBER 31, 2023

(In thousands of New Taiwan Dollars)

Item	Selling and Marketing	General and Administration	Research and Development	Expected credit losses	Total	Note
Salary Others Total	$36,125 55,247 $91,372	$64,039 48,668 $112,707	$43,161 49,324	$ - -	$143,325 153,239	Each of the accounts was less than 5% of the total account balance.
			$92,485	$-	$296,564

100

AI assistant

SIWARD — Audit Report / Information 2023

52117_rns_2023-12-01_0c4d6886-8002-4092-8964-c3df85c6527d.pdf

SIWARD Crystal Technology Co., Ltd.

Independent Auditor’s Report Translated from Chinese

Opinion

Basis for Opinion

Key Audit Matters

Impairment of accounts receivable

Inventory valuation

Responsibilities of Management and Those Charged with Governance for the Parent Company Only Financial Statements

Auditors’ Responsibilities for the Audit of the Parent Company Only Financial Statements

Notice to Readers

SIWARD Crystal Technology Co., Ltd.

PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2023 AND 2022

SIWARD Crystal Technology Co., Ltd.

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022

SIWARD Crystal Technology Co., Ltd.

PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022

SIWARD Crystal Technology Co., Ltd.

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS DECEMBER 31, 2023 AND 2022

SIWARD Crystal Technology Co., Ltd.

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS DECEMBER 31, 2023 AND 2022

SIWARD Crystal Technology Co., Ltd.

I. Company history

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

III. Newly issued or revised standards or interpretations

(3) Lack of Exchangeability (amendments to IAS 21)

IV. A summary of significant accounting policies

1. Statement of Compliance

2. Basis of Preparation

3. Foreign Currency Transactions

4. Translation of Foreign Currency Financial Statements

6. Cash and Cash Equivalents

7. Financial Instruments

Financial assets at amortized cost

Financial assets at fair value through other comprehensive income

Financial assets at fair value through profit or loss

Classification of liabilities or equity

Equity instrument

Compound instrument

Financial liabilities

Financial liabilities at fair value through profit or loss

Financial liabilities at amortized cost

Derecognition of financial liabilities

(5) Offsetting Financial Assets and Financial Liabilities

8. Derivative Instruments

10. Inventories

11. Investments Accounted for Using the Equity Method

12. Property, Plant and Equipment

13. Investment Properties

14. Leases

The Company as a lessee

The Company as a lessor

15. Intangible Assets

SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements (Amounts are expressed in thousands of New Taiwan dollars unless otherwise stated.)

16. Impairment of Non-financial Assets

17. Provisions

18. Revenue Recognition

Sale of goods

19. Borrowing Costs

20. Government Grants

21. Post-employment Benefit Plans

22. Share-based Payment

recognized.

23. Income Tax

Current tax

Deferred tax

24. Business Combinations and Goodwill

V. Significant accounting judgments, estimations, and assumptions

1. Judgments

2. Estimations and Assumptions

(1) Income Tax

(2) Receivables – Estimation of Impairment Losses

(3) Inventories

VI. Descriptions of major accounting items

5. Investments Accounted for Using the Equity Method

6. Property, Plant and Equipment

SIWARD Crystal Technology Co., Ltd. Notes to the Parent Company Only Financial Statements

SIWARD Audit Report / Information 2023