SPT — Audit Report / Information 2023

Nov 9, 2023

SCINOPHARM TAIWAN, LTD.

PARENT COMPANY ONLY FINANCIAL

STATEMENTS AND INDEPENDENT AUDITORS’

REPORT

DECEMBER 31, 2023 AND 2022

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

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INDEPENDENT AUDITORS’ REPORT TRANSLATED FROM CHINESE

To the Board of Directors and Shareholders of ScinoPharm Taiwan, Ltd.

Opinion

We have audited the accompanying parent company only balance sheets of ScinoPharm Taiwan, Ltd. (the “Company”) as at December 31, 2023 and 2022, and the related parent company only statements of comprehensive income, of changes in equity and of cash flows for the years then ended, and notes to the parent company only financial statements, including a summary of significant accounting policies.

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

Basis for opinion

We conducted our audits in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors’ responsibilities for the audit of the parent company only financial statements section of our report. We are independent of the Company in accordance with the Norm of Professional Ethics for Certified Public Accountants in the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. 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 Company’s 2023 parent company only financial statements. These matters were addressed in the context of our audit of the parent company only financial statements as a whole and, in forming our opinion thereon, we do not provide a separate opinion on these matters.

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The key audit matters for the Company’s 2023 parent company only financial statements are stated as follows:

Occurrence of sales revenues from API and injection products

Description

Refer to Note 4(26) for accounting policy on revenue recognition and Note 6(17) for accounting items on revenue.

The Company’s sales revenue mainly arises from the manufacture and sales of Active Pharmaceutical Ingredient (“API”) and injection products. The Company’s customers come from Taiwan, Asia, Europe and America. Since the volume and amount of transactions are significant, we considered the occurrence of sales revenue from API and injection products a key audit matter.

How our audit addressed the matter

We performed the following key audit procedures in response to the above key audit matter:

1. We evaluated internal control system that was designed and implemented by management in reviewing customers’ credit, and tested whether the counterparty and the credit valuation documents have been properly approved.

2. We sampled transaction details and supporting documents for consistency from transaction counterparties who have higher turnover growth.

3. We sent confirmation letters for significant transaction counterparties, ascertained whether the responses and account records were consistent with customers’ data, and evaluated the reasonableness on the difference between the responses and the account records.

Inventory valuation

Description

Refer to Note 4(11) for accounting policies on inventory valuation, Note 5(2) for the uncertainty of accounting estimates and assumptions applied in inventory valuation, and Note 6(4) for details of inventories. As at December 31, 2023, the balances of inventory and allowance for inventory valuation losses were $1,694,725 thousand and $324,653 thousand, respectively.

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The Company is primarily engaged in manufacturing and sales of API. Due to the complex manufacturing process, long lead time in materials preparation and uncertain product registration timing before market launch, there is a higher risk of incurring loss on inventory valuation. For inventories sold under normal terms, the Company measures inventories at the lower of cost and net realisable value. For inventories ageing over a certain period of time or are individually identified as obsolete inventories, the net realisable value is calculated based on the historical information of inventory turnover. Since the calculation of net realisable value involves subjective judgement and the ending balance of inventory is material to the financial statements, we considered the valuation of inventory a key audit matter.

How our audit addressed the matter

We performed the following key audit procedures in response to the above key audit matter:

1. We compared the financial statements to ascertain whether the provision policy on allowance for inventory valuation losses has been consistently applied and assessed the reasonableness of the provision policy.

2. We understood the inventory management process, observing annual physical counts to assess the effectiveness of management’s classification and controls over obsolete and slow-moving inventory.

3. We checked the accuracy of inventory aging report and sampled inventories for those lately changed before the balance sheet date in order to compute the accuracy of inventory aging range; and evaluated whether the older inventories were obsolete.

4. We sampled the computation of net realisable value of individual inventory and compared with account records.

Responsibilities of management and those charged with governance for the parent

company only financial statements

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

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

Those charged with governance, including audit committee, are responsible for overseeing the Company’s financial reporting process.

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

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

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

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

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

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

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

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

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

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

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

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

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Yeh, Fang-Ting

Independent Accountants

Lin, Tzu-Shu

PricewaterhouseCoopers, Taiwan

Republic of China February 27, 2024

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

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

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SCINOPHARM TAIWAN, LTD. PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2023 AND 2022

(Expressed in thousands of New Taiwan dollars)

Assets	Notes 6(1) 6(2) 6(3) and 12 7 5 and 6(4) 6(5) 6(6) 6(7)(9) 6(8) 6(24) 6(7) 8	December 31, 2023 AMOUNT % $ 3,861,403 33 8,304 - 781,055 7 15,433 - 2,960 - 1,370,072 12 91,479 1 6,130,706 53 69,973 1 1,455,636 12 2,670,501 23 572,617 5 11,683 - 543,837 5 113,503 1 827 - 30,940 - 5,469,517 47 $ 11,600,223 100	December 31, 2022	December 31, 2022
		AMOUNT $ 3,861,403 8,304 781,055 15,433 2,960 1,370,072 91,479 6,130,706 69,973 1,455,636 2,670,501 572,617 11,683 543,837 113,503 827 30,940 5,469,517 $ 11,600,223	AMOUNT $ 4,260,260 - 560,045 15,236 3,869 1,117,559 117,119 6,074,088 112,616 1,509,480 2,800,235 586,662 4,573 537,490 128,997 936 30,940 5,711,929 $ 11,786,017	%
Current assets 1100 Cash and cash equivalents 1110 Financial assets at fair value through profit or loss - current 1170 Accounts receivable, net 1200 Other receivables 1210 Other receivables - related parties 130X Inventories 1410 Prepayments 11XX Total current assets Non-current assets 1517 Financial assets at fair value through other comprehensive income - non-current 1550 Investments accounted for using equity method 1600 Property, plant and equipment 1755 Right-of-use assets 1780 Intangible assets 1840 Deferred income tax assets 1915 Prepayments for equipment 1920 Guarantee deposits paid 1980 Other financial assets - non-current 15XX Total non-current assets 1XXX Total assets				36 - 5 - - 10 1
				52
				1 13 24 5 - 4 1 - -
				48
				100

(Continued)

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SCINOPHARM TAIWAN, LTD. PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2023 AND 2022

(Expressed in thousands of New Taiwan dollars)

Liabilities and Equity	December 31, 2023 December 31, 2022 Notes AMOUNT % AMOUNT % 6(2) $ - - $ 361 - 6(17) 87,883 1 55,582 1 1,178 - 1,235 - 68,363 1 116,251 1 7 43,283 - 41,890 - 6(10) and 7 328,527 3 346,066 3 6(24) 62,597 - 99,636 1 17,556 - 17,893 - 609,387 5 678,914 6 6(24) 1,661 - - - 570,231 5 581,181 5 6(11) 54,514 1 74,491 - - - 1,378 - 626,406 6 657,050 5 1,235,793 11 1,335,964 11 6(12) 7,907,392 68 7,907,392 67 6(13) 1,294,689 11 1,294,689 10 6(15) 755,145 7 719,584 6 98,176 1 61,125 1 494,884 4 565,439 5 6(16) ( 185,856) ( 2) ( 98,176) - 10,364,430 89 10,450,053 89 7 and 9 $ 11,600,223 100 $ 11,786,017 100	December 31, 2022	December 31, 2022
			%
Current liabilities 2120 Financial liabilities at fair value through profit or loss - current 2130 Contract liabilities - current 2150 Notes payable 2170 Accounts payable 2180 Accounts payable - related parties 2200 Other payables 2230 Current income tax liabilities 2280 Lease liabilities - current 21XX Total current liabilities Non-current liabilities 2570 Deferred income tax liabilities 2580 Lease liabilities - non-current 2640 Net defined benefit liabilities - non- current 2645 Guarantee deposits received 25XX Total non-current liabilities 2XXX Total liabilities Equity Share capital 3110 Common stock 3200 Capital surplus Retained earnings 3310 Legal reserve 3320 Special reserve 3350 Unappropriated earnings 3400 Other equity interest 3XXX Total equity Significant contingent liabilities and unrecognised contract commitments 3X2X Total liabilities and equity			- 1 - 1 - 3 1 -
			6
			- 5 - -
			5
			11
			67 10 6 1 5 -
			89
			100

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

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SCINOPHARM TAIWAN, LTD. PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME YEARS ENDED DECEMBER 31, 2023 AND 2022

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

Items

Year ended December 31 2023 2022 Notes AMOUNT % AMOUNT % 6(17) and 7 $ 3,006,952 100 $ 3,069,434 100 6(4)(11)(22)(23) and 7 ( 1,923,659) ( 64) ( 1,837,636) ( 60) 1,083,293 36 1,231,798 40 6(11)(22)(23), 7 and 12 ( 184,698) ( 6) ( 172,499) ( 6) ( 282,873) ( 9) ( 331,590) ( 11) ( 299,089) ( 10) ( 219,654) ( 7) - - ( 40) - ( 766,660) ( 25) ( 723,783) ( 24) 316,633 11 508,015 16 6(18) 53,046 2 21,240 1 6(19) and 7 19,417 - 21,269 1 6(2)(7)(9)(20) and 12 ( 24,781) ( 1) 714 - 6(8)(21) ( 6,719) - ( 6,817) - 6(6) ( 8,807) - ( 106,490) ( 4) 32,156 1 ( 70,084) ( 2) 348,789 12 437,931 14 6(24) ( 61,733) ( 2) ( 84,715) ( 3) $ 287,056 10 $ 353,216 11 6(11) ($ 417) - $ 2,986 - 6(5)(16) ( 42,643) ( 1) ( 73,180) ( 2) 6(24) 84 - ( 597) - 6(6)(16) ( 45,037) ( 2) 36,129 1 ($ 88,013) ( 3) ($ 34,662) ( 1) $ 199,043 7 $ 318,554 10 6(25) $ 0.36 $ 0.45 $ 0.36 $ 0.45

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

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

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SCINOPHARM TAIWAN, LTD.

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

(Expressed in thousands of New Taiwan dollars)

Year ended December 31, 2022 Balance at January 1, 2022 Net income for the year Other comprehensive income (loss) for the year Total comprehensive income (loss) for the year Distribution of 2021 net income: Legal reserve Special reserve Cash dividends Balance at December 31, 2022 Year ended December 31, 2023 Balance at January 1, 2023 Net income for the year Other comprehensive income (loss) for the year Total comprehensive income Distribution of 2022 net income: Legal reserve Special reserve Cash dividends Balance at December 31, 2023	Notes		Share capital - common stock		Capital reserve			Retained Earnings	Retained Earnings			Other Equity Interest	Other Equity Interest	Other Equity Interest		Total
							Legal reserve		Special reserve		Unappropriated earnings	Financial statements translation differences of foreign operations		Unrealised gains (losses) from financial assets measured at fair value through other comprehensive income
	6(5)(6)(16) 6(15) 6(5)(6)(16) 6(15)		$ 7,907,392 - - - - - - $ 7,907,392 $ 7,907,392 - - - - - - $ 7,907,392		$ 1,294,689 - - - - - - $ 1,294,689 $ 1,294,689 - - - - - - $ 1,294,689		$ 679,074 - - - 40,510 - - $ 719,584 $ 719,584 - - - 35,561 - - $ 755,145		$ 33,043 - - - - 28,082 - $ 61,125 $ 61,125 - - - - 37,051 - $ 98,176	$ 657,981 353,216 2,389 355,605 ( 40,510) ( 28,082) ( 379,555) $ 565,439 $ 565,439 287,056 ( 333) 286,723 ( 35,561) ( 37,051) ( 284,666) $ 494,884		($ 79,248 ) - 36,129 36,129 - - - ($ 43,119 ) ($ 43,119 ) - ( 45,037 ) ( 45,037 ) - - - ($ 88,156 )	$ 18,123 - ( 73,180) ( 73,180) - - - ($ 55,057) ($ 55,057) - ( 42,643) ( 42,643) - - - ($ 97,700)		$ 10,511,054 353,216 ( 34,662 ) 318,554 - - ( 379,555 ) $ 10,450,053 $ 10,450,053 287,056 ( 88,013 ) 199,043 - - ( 284,666 ) $ 10,364,430

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

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SCINOPHARM TAIWAN, LTD.

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

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax Adjustments Adjustments to reconcile profit (loss) (Gain) loss on valuation of financial assets and liabilities at fair value through profit or loss Expected credit loss Loss on inventory market price decline Share of loss of subsidiaries, associates and joint ventures accounted for using equity method Depreciation of property, plant and equipment Depreciation of right-of-use assets Gain on disposal of property, plant and equipment Gain on reversal of impairment loss Amortisation Interest income Interest expense Changes in operating assets and liabilities Changes in operating assets Accounts receivable Other receivables Other receivables - related parties Inventories Prepayments Changes in operating liabilities Contract liabilities - current Notes payable Accounts payable Accounts payable - related parties Other payables Advance receipts Net defined benefit liabilities - non-current Cash inflow generated from operations Interest received Interest paid Income tax paid Net cash flows from operating activities

Year ended December 31 Notes 2023 2022 $ 348,789 $ 437,931 ( 8,665 ) 2,103 12 - 40 6(4) 23,248 3,243 6(6) 8,807 106,490 6(7)(22) 344,832 318,765 6(8)(22) 14,045 14,054 6(20) - ( 60 ) 6(7)(9)(20) ( 1 ) ( 634 ) 6(22) 3,374 2,702 6(18) ( 53,046 ) ( 21,240 ) 6(21) 6,719 6,817 ( 221,010 ) ( 207,241 ) 4,771 ( 5,788 ) 909 277 ( 275,761 ) 102,229 25,640 ( 34,562 ) 32,301 5,852 ( 57 ) 63 ( 47,888 ) 60,436 1,393 32,531 ( 34,422 ) 57,477 - ( 1,740 ) ( 20,394 ) ( 2,069 ) 153,584 877,676 48,078 19,916 ( 6,719 ) ( 6,817 ) ( 103,374 ) ( 77,476 ) 91,569 813,299

(Continued)

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SCINOPHARM TAIWAN, LTD.

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

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM INVESTING ACTIVITIES Cash paid for acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Acquisition of intangible assets Increase in prepayments for equipment Decrease in guarantee deposits paid Increase in other financial assets - non-current Net cash flows used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Repayment of the principal portion of lease liabilities Decrease in guarantee deposits received Payment of cash dividends Net cash flows used in financing activities Net (decrease) increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year

Year ended December 31 Notes 2023 2022 6(26) ($ 68,324 ) ($ 42,137 ) - 60 ( 10,484 ) ( 4,372 ) ( 114,396 ) ( 81,138 ) 109 70 - ( 1,670 ) ( 193,095 ) ( 129,187 ) 6(27) ( 11,287 ) ( 11,188 ) 6(27) ( 1,378 ) ( 1,835 ) 6(15) ( 284,666 ) ( 379,555 ) ( 297,331 ) ( 392,578 ) ( 398,857 ) 291,534 6(1) 4,260,260 3,968,726 6(1) $ 3,861,403 $ 4,260,260

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

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SCINOPHARM TAIWAN, LTD.

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

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

1. HISTORY AND ORGANISATION

• (1) ScinoPharm Taiwan, Ltd. (the Company) was incorporated as a company limited by shares under the provisions of the Company Act of the Republic of China (R.O.C.) on November 11, 1997. The Company is primarily engaged in the manufacture of western medicines and other chemical materials, biological technology services, intellectual property rights, international trade and research, development, produce, manufacture and sales of Active Pharmaceutical Ingredients (API), albumin medicines, oligonucleotide medicines, peptide medicines, injections and new small molecule drugs, as well as the provision of related consulting and technical services and international trade for the above products. In addition, the Company sells the chemical material which is reprocessed from the material recycled from the Company’s manufacturing process.

• (2) The common shares of the Company have been listed on the Taiwan Stock Exchange since September 2011.

• (3) Uni-President Enterprises Corp., the Company’s ultimate parent company, holds 37.94% equity interest in the Company.

• THE DATE OF AUTHORISATION FOR ISSUANCE OF THE PARENT COMPANY ONLY FINANCIAL STATEMENTS AND PROCEDURES FOR AUTHORISATION

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

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

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

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

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

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

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

but not yet adopted by the Group

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

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

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

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

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

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

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

4. SUMMARY OF MATERIAL ACCOUNTING POLICIES

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

(1) Compliance statement

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

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(2) Basis of preparation

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

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

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

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

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

• (3) Foreign currency translation

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

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

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

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

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

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• (4) Classification of current and non-current items

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

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

  • (b) Assets held mainly for trading purposes;

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

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

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

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

  • (b) Liabilities arising mainly from trading activities;

  • (c) Liabilities that are to be paid off within twelve months from the balance sheet date;

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

• (5) Cash equivalents

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

• B. Time deposits and bills under repurchase agreements that meet the above criteria and are held for the purpose of meeting short-term cash commitment in operations are classified as cash equivalents.

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

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

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

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

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

~17~

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

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

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

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

• (8) Accounts and notes receivable

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

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

• (9) Impairment of financial assets

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

• (10) Derecognition of financial assets

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

• (11) Inventories

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

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and is recognised as deduction of operating costs.

• (12) Investments accounted for using equity method - subsidiaries

• A. A subsidiary is an entity where the Company has the right to dominate its finance and operating policies (including special purpose entities), normally the Company owns more than 50% of the voting rights directly or indirectly in that entity. Subsidiaries are accounted for under the equity method in the Company's non-consolidated financial statements.

• B. Unrealised gains or losses resulting from inter-company transactions with subsidiaries are eliminated. To meet the consistency of accounting policies of the Company, necessary adjustments are made to the accounting policies of the subsidiaries.

• C. After acquisition of subsidiaries, the Company recognises proportionately the share of profit and loss and other comprehensive income in the income statement as part of the Company’s profit and loss and other comprehensive income, respectively. When the share of loss from a subsidiary exceeds the carrying amount of Company’s interest in that subsidiary, the Company continues to recognise its share in the subsidiary's loss proportionately.

• D. According to Regulations Governing the Preparation of Financial Statements by Securities Issuers, ‘profit for the year’ and ‘other comprehensive income for the year’ reported in an entity's parent company only statement of comprehensive income, shall equal to ‘profit for the year’ and ‘other comprehensive income’ attributable to owners of the parent reported in that entity’s consolidated statement of comprehensive income. Total equity reported in an entity’s parent company only financial statements, shall equal to equity attributable to owners of parent reported in that entity’s consolidated financial statements.

• (13) Property, plant and equipment

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

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

• C. Property, plant and equipment apply cost model and are depreciated using the straight-line method to allocate their cost over their estimated useful lives. If each component of property, plant and equipment is significant, it is depreciated separately.

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

~19~

are as follows:

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Assets Estimated useful lives
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Assets	Est	imate	d use	ful lives
Buildings and structures	2	～	35	years
Machinery and equipment	2	～	12	years
Transportation equipment	2	～	5	years
Office equipment	2	～	9	years
Other equipment	2	～	19	years

(14) Intangible assets

Professional skills and computer software, etc. are stated at cost and amortized on a straight-line basis over its estimated useful life of 3 years.

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

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

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

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

• D. For lease modifications that decrease the scope of the lease, the lessee shall decrease the carrying amount of right-of use assets to reflect the partial or full termination of the lease, and recognise the difference between remeasured lease liability in profit or loss.

(16) Impairment of non-financial assets

• The Company assesses at each balance sheet date the recoverable amounts of those assets where there is an indication that they are impaired. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell or value in use. When the circumstances or reasons for recognizing impairment loss for an asset in prior years no longer exist or diminish, the impairment loss shall be reversed to the extent of the loss previously recognised in profit or loss. The increased carrying amount due to reversal should not exceed the depreciated or amortized

~20~

historical cost if the impairment had not been recognised.

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

• A. Financial liabilities are classified in this category of held for trading if acquired principally for the purpose of repurchasing in the short-term. Derivatives are also categorised as financial liabilities held for trading unless they are designated as hedges or financial liabilities at fair value through profit or loss. Financial liabilities that meet one of the following criteria are designated as at fair value through profit or loss at initial recognition:

  • (a) Hybrid (combined) contracts; or

  • (b) They eliminate or significantly reduce a measurement or recognition inconsistency; or

  • (c) They are managed and their performance is evaluated on a fair value basis, in accordance with a documented risk management policy.

• B. At initial recognition, the Company measures the financial liabilities at fair value. All related transaction costs are recognised in profit or loss. The Company subsequently measures these financial liabilities at fair value with any gain or loss recognised in profit or loss.

• (18) Notes and accounts payable

• A. Accounts payable are liabilities for purchases of raw materials, goods or services and notes payable are those resulting from operating and non-operating activities.

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

• (19) Derecognition of financial liabilities

• A financial liability is derecognised when the obligation under the liability specified in the contract is discharged, cancelled or expires.

• (20) Offsetting financial instruments

Financial assets and liabilities are offset and reported in the net amount in the balance sheet when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously.

(21) Employee benefits

• A. Short-term employee benefits

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

• B. Pensions

• (a) Defined contribution plan

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

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(b) Defined benefit plan

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

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

• C. Employees’ compensation and directors’ remuneration

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

• (22) Employee share based payment

• For the equity-settled share-based payment arrangements, the employee services received are measured at the fair value of the equity instruments granted at the grant date, and are recognised as compensation cost over the vesting period, with a corresponding adjustment to equity. The fair value of the equity instruments granted shall reflect the impact of market vesting conditions and nonmarket vesting conditions. Compensation cost is subject to adjustment based on the service conditions that are expected to be satisfied and the estimates of the number of equity instruments that are expected to vest under the non-market vesting conditions at each balance sheet date. Ultimately, the amount of compensation cost recognised is based on the number of equity instruments that eventually vest.

• (23) Income tax

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

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

~22~

levied on the unappropriated retained earnings and is recorded as income tax expense in the year the stockholders resolve to retain the earnings.

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

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

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

• (24) Share capital

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

• (25) Dividends

Dividends are recorded in the Company’s financial statements in the period in which they are resolved by the Company’s shareholders. Cash dividends are recorded as liabilities; stock dividends are recorded as stock dividends to be distributed and are reclassified to ordinary shares on the effective date of new shares issuance.

• (26) Revenue recognition

• A. Sales of goods

  • (a) The Company manufactures and sells API, intermediates, etc. Sales are recognised when control of the products has transferred, and there is no unfulfilled obligation that could affect the customer’s acceptance of the products. Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to

~23~

the customer, and either the customer has accepted the products in accordance with the sales contract, or the Company has objective evidence that all criteria for acceptance have been satisfied.

  - (b) Revenue is recognised based on the price specified in the contract, net of the sales returns and discounts. Accumulated experience is used to estimate and provide for the sales returns and discounts, using the expected value method, and revenue is only recognised to the extent that it is highly probable that a significant reversal will not occur. The estimation is subject to an assessment at each reporting date. As the time interval between the transfer of committed goods or service and the payment of customer does not exceed one year, the Company does not adjust the transaction price to reflect the time value of money.

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

• B. Sales of services

  • (a) The Company provides technology development and consultation services. Revenue from providing services is recognised in the accounting period in which the services are rendered. For fixed-price contracts, revenue is recognised based on the service rendered up to the end of the reporting period as a proportion of the total services to be provided. The customer pays at the time specified in the payment schedule. If the services rendered exceed the payment, a contract asset is recognised. If the payments exceed the services rendered, a contract liability is recognised.

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

• C. Incremental costs of obtaining a contract

  • Given that the contractual period lasts less than one year, the Company recognises the incremental costs (mainly comprised of sales commissions) of obtaining a contract as an expense when incurred although the Company expects to recover those costs.

• (27) Government grants

Government grants are recognised at their fair value only when there is reasonable assurance that the Company will comply with any conditions attached to the grants and the grants will be received. Government grants are recognised in profit or loss on a systematic basis over the periods in which the Group recognises expenses for the related costs for which the grants are intended to compensate.

~24~

5. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF ASSUMPTION UNCERTAINTY

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

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

• None.

(2) Critical accounting estimates and assumptions

• A. As inventories are stated at the lower of cost and net realisable value, the Company must determine the net realisable value of inventories on balance sheet date using judgments and estimates. As the manufacturing process is long and complex, causing longer materials lead time, the waiting period for product registration is long, and the timing of customers’ product launch may be deferred, the Company evaluates the amounts of normal inventory consumption, obsolete inventories or inventories without market selling value on balance sheet date, and writes down the cost of inventories to the net realisable value. Such an evaluation of inventories is principally based on the demand for the products within the specified period in the future. Therefore, there might be material changes to the evaluation.

• B. As of December 31, 2023, the carrying amount of inventories was $1,370,072.

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) CASH AND CASH EQUIVALENTS

TAILS OF SIGNIFICANT ACCOUNTS CASH AND CASH EQUIVALENTS
Cash: Cash on hand Cash equivalents: Time deposits Checking accounts and demand deposits Bills under repurchase agreements	December31,2023 30 $ 72,873 72,903 3,648,500 14,000 3,788,500 3,861,403 $	December31,2022
		30 $ 111,780
		111,810
		3,958,500 189,950 4,148,450
		4,260,260 $

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

• B. Details of the Company’s time deposits pledged to others as collateral (listed as ‘Other financial assets - non-current’) as of December 31, 2023 and 2022 are provided in Note 8.

~25~

(2) FINANCIAL ASSETS (LIABILITIES) AT FAIR VALUE THROUGH PROFIT OR LOSS

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Items December 31, 2023 December 31, 2022
Current items:
Financial assets (liabilities) mandatorily measured
at fair value through profit or loss
Derivatives $ 8,304 ($ 361)
Non-current items:
Financial assets mandatorily measured at fair value
through profit or loss
Unlisted stocks $ 4,620 $ 4,620
Valuation adjustment ( 4,620) ( 4,620)
- -
$ $
----- End of picture text -----

• A. The Company recognised net loss of $7,578 and $36,985 on financial assets (liabilities) at fair value through profit or loss (listed as “ Other gains and losses”) for the years ended December 31, 2023 and 2022, respectively.

• B. The Company entered into contracts relating to derivative financial assets (liabilities) which were not accounted for under hedge accounting. The information is listed below (Units in thousands of currencies indicated):

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

December 31, 2023
Items Contract amount Contract period
----- End of picture text -----

Items	Contract amount December	Contract period 31, 2023
Forward foreign exchange contracts Items Forward foreign exchange contracts	USD 11,860 CNY 4,300 December	11.2023~3.2024 12.2023~1.2024 31,2022
	Contract amount USD 10,468	Contract period
		11.2022~2.2023

The Company entered into forward foreign contracts to hedge exchange rate risk of operating activities. However, these forward foreign exchange contracts are not accounted for under hedge accounting.

• C. The Company has no financial assets at fair value through profit or loss pledged to others as of December 31, 2023 and 2022.

(3) ACCOUNTS RECEIVABLE, NET

December 31, 2023 and 2022. ACCOUNTS RECEIVABLE, NET
		December	31,2023		December	31,2022
Accounts receivable		$	781,135		$	560,125
Less: Loss allowance	(		80)	(		80)
		$	781,055		$	560,045

~26~

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

Not past due Less than 30 days Between 31 to 90 days	December31,2023 December31,2022 695,967 $ 480,778 $ 67,927 78,530 17,241 817 781,135 $ 560,125 $

The above ageing analysis is based on past due date.

• B. As of December 31, 2023 and 2022, accounts receivable arose from contracts with customers. As of January 1, 2022, the balance of receivables from contracts with customers amounted to $352,884.

• C. As of December 31, 2023 and 2022, the Company does not hold any collateral as security.

• D. As of December 31, 2023 and 2022, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the Company’s accounts receivable is the book value.

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

(4) INVENTORIES

INVENTORIES
Raw materials Supplies Work in process Finished goods Raw materials Supplies Work in process Finished goods		December31,2023
	Allowance for Cost marketprice decline 329,829 $ 62,099) ($ 37,115 3,773) ( 485,516 77,616) ( 842,265 181,165) ( 1,694,725 $ 324,653) ($ December31,2022		Bookvalue
			267,730 $ 33,342 407,900 661,100
			1,370,072 $
	Allowance for Cost market price decline 343,287 $ 57,627) ($ 27,663 2,584) ( 412,577 71,096) ( 635,437 170,098) ( 1,418,964 $ 301,405) ($		Bookvalue
			285,660 $ 25,079 341,481 465,339
			1,117,559 $

~27~

The cost of inventories recognised as expense for the year:

			Forthe years ended	Forthe years ended	Forthe years ended	December31,
			2023			2022
Cost of goods sold		$	1,430,584		$	1,401,420
Loss on inventory scrap			41,806			29,884
Loss on inventory market price decline			23,248			3,243
Loss on physical inventory			575			706
Under applied manufacturing overhead			375,063			373,855
Revenue from sale of scraps	(		2,332)	(		1,964)
		$	1,868,944		$	1,807,144

(5) FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME - NON-CURRENT

NON-CURRENT
	Items	December	31,2023		December	31,2022
Equity instruments
Unlisted stocks		$	167,673		$	167,673
Valuation adjustment	(		97,700)	(		55,057)
		$	69,973		$	112,616

• A. The Company has elected to classify investments that are considered to be strategic investments as financial assets at fair value through other comprehensive income. The fair value of such investments is the book value as at December 31, 2023 and 2022.

B. Amounts recognised in other comprehensive income in	B. Amounts recognised in other comprehensive income in	relation to the financial assets at fair value	relation to the financial assets at fair value	relation to the financial assets at fair value
through other comprehensive income are listed below:
Equity instruments at fair value through other		For the years ended December 31,
comprehensive income		2023		2022
Fair value change recognised in other
comprehensive income	($	42,643)	($	73,180)

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

~28~

(6) INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD

			Forthe years ended	Forthe years ended	Forthe years ended	December31,
			2023			2022
At January 1		$	1,509,480		$	1,579,841
Share of profit or loss of investments
accounted for using equity method	(		8,807)	(		106,490)
Changes in other equity items	(		45,037)			36,129
At December 31		$	1,455,636		$	1,509,480
		December 31, 2023			December 31, 2022
Subsidiaries:
SPT International, Ltd.		$	1,455,447		$	1,509,313
ScinoPharm Singapore Pte Ltd.			189			167
		$	1,455,636		$	1,509,480

• A. For information relating to the Company’s subsidiaries, refer to Note 4(3), “Basis of consolidation” of the Company’s 2023 consolidated financial statements.

• B. As of December 31, 2023 and 2022, the Company has no investment accounted for using equity method pledged as collateral.

~29~

(7) PROPERTY, PLANT AND EQUIPMENT

														Construction in
														progress and
				Machinery and		Transportation			Office		Other			equipment before
January 1, 2023		Buildings			equipment		equipment		equipment		equipment		acceptance inspection			Total
Cost	$	3,068,749	$		5,166,340	$	17,828	$	153,415	$	10,715	$		136,213	$	8,553,260
Accumulated depreciation	(	1,414,480)	(		4,178,650)	(	17,566)	(	136,617)	(	2,697)			-	(	5,750,010)
Accumulated impairment		-	(		3,015)		-		-		-			-	(	3,015)
	$	1,654,269	$		984,675	$	262	$	16,798	$	8,018	$		136,213	$	2,800,235
For the year ended December 31, 2023
At January 1	$	1,654,269	$		984,675	$	262	$	16,798	$	8,018	$		136,213	$	2,800,235
Additions		-			856		-		-		-			84,351		85,207
Reclassified from prepayments
for equipment		-			-		-		-		-			129,890		129,890
Reclassified upon completion		129,531			115,247		2,491		25,470		-	(		272,739)		-
Depreciation charge	(	140,106)	(		193,197)	(	458)	(	10,566)	(	505)			-	(	344,832)
Disposals－Cost	(	2,540)	(		55,652)		-	(	7,209)	(	368)			-	(	65,769)
－Accumulated depreciation		2,540			55,652		-		7,209		368			-		65,769
Gain on reversal of impairment loss		-			1		-		-		-			-		1
At December 31	$	1,643,694	$		907,582	$	2,295	$	31,702	$	7,513	$		77,715	$	2,670,501
December 31, 2023
Cost	$	3,195,740	$		5,226,791	$	20,319	$	171,676	$	10,347	$		77,715	$	8,702,588
Accumulated depreciation	(	1,552,046)	(		4,316,195)	(	18,024)	(	139,974)	(	2,834)			-	(	6,029,073)
Accumulated impairment		-	(		3,014)		-		-		-			-	(	3,014)
	$	1,643,694	$		907,582	$	2,295	$	31,702	$	7,513	$		77,715	$	2,670,501

~30~

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Construction in
progress and
Machinery and Transportation Office Other equipment before
January 1, 2022 Buildings equipment equipment equipment equipment acceptance inspection Total
Cost $ 2,542,578 $ 4,597,911 $ 17,580 $ 153,563 $ 3,748 $ 1,118,217 $ 8,433,597
-
Accumulated depreciation ( 1,285,445) ( 4,039,074) ( 17,391) ( 130,891) ( 2,245) ( 5,475,046)
Accumulated impairment - ( 3,649) - - - - ( 3,649)
$ 1,257,133 $ 555,188 $ 189 $ 22,672 $ 1,503 $ 1,118,217 $ 2,954,902
For the year ended December 31, 2022
At January 1 $ 1,257,133 $ 555,188 $ 189 $ 22,672 $ 1,503 $ 1,118,217 $ 2,954,902
Additions 270 4,405 - - - 43,560 48,235
Reclassified from prepayments
- - - - -
for equipment 115,229 115,229
Reclassified upon completion 525,901 601,716 248 5,961 6,967 ( 1,140,793) -
-
Depreciation charge ( 129,035) ( 177,268) ( 175) ( 11,835) ( 452) ( 318,765)
Disposals － Cost - ( 37,692) - ( 6,109) - - ( 43,801)
－ - - - -
Accumulated depreciation 37,692 6,109 43,801
Gain on reversal of impairment loss - 634 - - - - 634
At December 31 $ 1,654,269 $ 984,675 $ 262 $ 16,798 $ 8,018 $ 136,213 $ 2,800,235
December 31, 2022
Cost $ 3,068,749 $ 5,166,340 $ 17,828 $ 153,415 $ 10,715 $ 136,213 $ 8,553,260
-
Accumulated depreciation ( 1,414,480) ( 4,178,650) ( 17,566) ( 136,617) ( 2,697) ( 5,750,010)
Accumulated impairment - ( 3,015) - - - - ( 3,015)
$ 1,654,269 $ 984,675 $ 262 $ 16,798 $ 8,018 $ 136,213 $ 2,800,235
----- End of picture text -----

~31~

• A. The Company has not capitalised any interest for the years ended December 31, 2023 and 2022.

• B. The Company’s property, plant and equipment were owner-occupied for the years ended December 31, 2023 and 2022.

• C. Information about reversal of impairment loss and impairment loss on property, plant and equipment is provided in Note 6(9).

• D. As of December 31, 2023 and 2022, no property, plant and equipment were pledged to others as collateral.

－ (8) LEASING ARRANGEMENTS LESSEE

• A. The Company leases land and buildings and structures. Rental contracts are typically made for periods of 50 (including option to extend the leases) and 2 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose covenants, but leased assets may not be used as security for borrowing purposes.

• B. Short-term leases with a lease term of 12 months or less pertain to office premises and low-value assets pertain to computers.

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

Land Buildings and structures Land Buildings and structures	December31,2023 December31,2022 Carrying amount Carrying amount 571,610 $ 584,312 $ 1,007 2,350 572,617 $ 586,662 $ For theyears ended December31,	December31,2022
		Carrying amount
		584,312 $ 2,350
		586,662 $
	2023 Depreciationcharge 12,702 $ 1,343 14,045 $	2022
		Depreciationcharge
		12,703 $ 1,351
		14,054 $

• －

• D. For the years ended December 31, 2023 and 2022, the additions to right-of-use assets were $ －

• and $2,686, respectively, and the additions from remeasurement of right-of-use assets were $ and $51,145, respectively.

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

and $51,145, respectively. The information on profit and loss accounts relating	to lease contracts is as follows:	to lease contracts is as follows:
Items affecting profit or loss Interest expense on lease liabilities Expense on short-term lease contracts Expense on leases of low-value assets	Forthe years endedDecember31,
	2023 6,719 $ 582 3,592	2022
		6,817 $ 739 2,849

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• F. For the years ended December 31, 2023 and 2022, the Company’s total cash outflow for leases were $22,180 and $21,593, respectively.

(9) IMPAIRMENT OF NON-FINANCIAL ASSETS

• A. Some of the idle machineries were again utilised in production and accordingly, the Company recognised the reversal of impairment loss amounting to $1 and $634 for the years ended December 31, 2023 and 2022 (listed as “Other gains and losses”), respectively. For details of accumulated impairment, refer to Note 6(7).

• B. The gain on reversal of impairment loss reported by operating segments are as follows:

		For the years ended December 31,	For the years ended December 31,	For the years ended December 31,
	2023			2022
	Recognised in other			Recognised in other
Recognised in		comprehensive	Recognised in	comprehensive
Department profit or loss		income	profit or loss	income
ScinoPharm Taiwan 1 $	$	-	634 $	- $

(10) OTHER PAYABLES

OTHER PAYABLES
Accrued salaries and bonuses Payables on equipment Accrued employees’ compensation and directors' remuneration Others	December31,2023 71,891 $ 48,123 39,472 169,041 328,527 $	December31,2022
		67,289 $ 31,240 49,453 198,084
		346,066 $

(11) PENSIONS

• A. The Company has set up a defined benefit pension plan in accordance with the Labor Standards Law, which applies to all regular employees’ service years prior to the enforcement of the Labor Pension Act (the “Act”) on July 1, 2005 and service years thereafter of employees who chose to continue to be covered under the pension scheme of the Labor Standards Law after the enforcement of the Act. In accordance with the Company's retirement plan, an employee may retire when the employee either (i) attains the age of 55 with 15 years of service, (ii) has more than 25 years of service, (iii) has reached the age of 65, or (iv) is incapacitated to work (compulsory retirement). The employees earn two units for each year of service for the first 15 years, and one unit for each additional year thereafter up to a maximum of 45 units. Any fraction of a year equal to or more than six months shall be counted as one year of service, and any fraction of a year less than six months shall be counted as half a year. According to the provisions, employees who retired due to their duties shall get additional 20%. Pension payments are based on the number of units earned at the time of approved retirement. Calculation of average salary is in accordance with the Labor Standards Law of the R.O.C. The Company contributes monthly an amount equal to 2% of the employees’ monthly salaries and wages to the retirement fund

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deposited with Bank of Taiwan under the name of the independent retirement fund committee. Also, the Company would assess the balance in the aforementioned labor pension reserve account by December 31, every year. If the account balance is not enough to pay the pension calculated by the aforementioned methods to the employees expected to qualify for retirement in the following year, the Company will make contribution for the deficit by the end of March next year.

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

		December	31,2023		December	31,2022
Present value of defined benefit obligations		$	103,268		$	101,171
Fair value of plan assets	(		48,754)	(		26,680)
Net defined benefit liability		$	54,514		$	74,491

(b) Movements in net defined liabilities are as follows:

			Present value of
For the year ended			defined benefit		Fair value of			Net defined
December 31, 2023			obligations		planassets		benefitliability
At January 1		$	101,171	($	26,680)		$	74,491
Current service cost			356		-			356
Interest expense (income)			1,215	(	321)			894
			102,742	(	27,001)			75,741
Remeasurements:
Return on plan assets			-	(	109)	(		109)
Experience adjustments			526		-			526
			526	(	109)			417
Pension fund contribution			-	(	21,644)	(		21,644)
At December 31		$	103,268	($	48,754)		$	54,514
			Present value of
For the year ended			defined benefit		Fair value of			Net defined
December 31, 2022			obligations		planassets		benefitliability
At January 1		$	101,385	($	21,839)		$	79,546
Current service cost			340		-			340
Interest expense (income)			608	(	131)			477
			102,333	(	21,970)			80,363
Remeasurements:
Return on plan assets			-	(	1,824)	(		1,824)
Change in financial
assumptions	(		5,612)		-	(		5,612)
Experience adjustments			4,450		-			4,450
	(		1,162)	(	1,824)	(		2,986)
Pension fund contribution			-	(	2,886)	(		2,886)
At December 31		$	101,171	($	26,680)		$	74,491

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

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

Discount rate Future salary increases	Forthe years endedDecember31,	Forthe years endedDecember31,
	2023 1.20% 1.00%	2022
		1.20%
		1.00%

Assumptions regarding future mortality experience are set based on actuarial advice in accordance with published statistics and experience according to Taiwan Life Insurance Industry 6[th] Mortality Table for the years ended December 31, 2023 and 2022, respectively. Because the main actuarial assumption changed, the present value of defined benefit obligation is affected. The analysis was as follows:

obligation is affected. The analysis was as follows:
Increase0.25% Decrease0.25% December 31, 2023 Effect on present value of defined benefit obligation 2,050) ($ 2,109 $ December 31, 2022 Effect on present value of defined benefit obligation 2,221) ($ 2,289 $ Discount rate	Future salaryincreases
	Increase0.25% Decrease0.25% 1,848 $ 1,808) ($ 2,032 $ 1,985) ($	Decrease0.25%

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

The method and types of assumptions used in preparing the sensitivity analysis did not

~35~

change compared to the previous year.

• (e) Expected contributions to the defined benefit pension plan of the Company for 2024 amounted to $2,830.

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

Within 1 year	$	3,387
2～5 years		27,870
Over 6 years		82,715
	$	113,972

• B. Effective July 1, 2005, the Company has established a defined contribution pension plan (the “New Plan”) under the Labor Pension Act (the “Act”), covering all regular employees with R.O.C. nationality. Under the New Plan, the Company contributes monthly an amount based on 6% of the employees’ monthly salaries and wages to the employees’ individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment. The net pension costs recognised under the defined contribution plan were $28,387 and $26,829 for the years ended December 31, 2023 and 2022, respectively.

(12) SHARE CAPITAL

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

thousands of shares):
Beginning and ending number of the year	Forthe years endedDecember31,
	2023 790,739	2022
		790,739

• B. As of December 31, 2023, the Company’s authorised capital was $10,000,000 and the paid-in capital was $7,907,392 (790,739 thousand shares) with a par value of $10 (in dollars) per share. All proceeds from shares issued have been collected.

(13) CAPITAL RESERVE

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

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B. Movements in the Company’s capital reserve are as follows:

At January 1 Employee stock options forfeited －Company At December 31 At January 1 Employee stock options forfeited －Company At December 31	Forthe yearendedDecember31,2023	Forthe yearendedDecember31,2023
	Sharepremium Stock options Total 1,256,454 $ 38,235 $ 1,294,689 $ 8,882 8,882) ( - 1,265,336 $ 29,353 $ 1,294,689 $ Forthe yearendedDecember31,2022	Total
		1,294,689 $ -
		1,294,689 $
	Share premium Stockoptions 1,254,273 $ 40,416 $ 2,181 2,181) ( 1,256,454 $ 38,235 $	Total
		1,294,689 $ -
		1,294,689 $

(14) SHARE-BASED PAYMENT - EMPLOYEES’ COMPENSATION

• A. The Company issued 1 million units, 1.5 million units and 1.5 million units of employee stock options on December 3, 2013, November 6, 2015 and October 14, 2016, respectively (the Grant Date). The exercise prices of the options were set at $91.70 (in dollars), $41.65 dollars (in dollars) and $40.55 (in dollars), respectively, which were based on the closing market price of the Company’s common shares on the Grant Date. Each option gives the holder the right to purchase one share of the Company's common stocks. The exercise price is subject to further adjustments when there is a change in the number of shares of the Company's common stocks, the cash dividend of the common stocks is more than 1.5% of the current price per share or there is a decrease in common stocks caused by capital reduction not due to the retirement of treasury share after the Grant Date. (As of December 31, 2023, for the issued 1 million units, 1.5 million units and 1.5 million units of employee stock options, the exercise price was adjusted based on the specific formula to $71.60 (in dollars) per share, $35.80 (in dollars) per share and $36.30 (in dollars) per share, respectively.) Contract period of the employee stock option plans is 10 years, and options are exercisable in 2 years after the Grant Date.

• B. Details of the share-based payment arrangement are as follows:

			Forthe yearended	December31,2023	December31,2023
				Weighted-average
			Number of options		exercise price
			(unitinthousands )		(indollars)
Options	outstanding at beginning of the year		1,526	$	43.50
Options	forfeited	(	362)		67.39
Options	outstanding at end of the year		1,164		36.07
Options	exercisable at end of the year		1,164		36.07

~37~

For the year ended December 31, 2022

Number of options (unitinthousands ) Options outstanding at beginning of the year 1,660 Options forfeited 134) ( Options outstanding at end of the year 1,526 Options exercisable at end of the year 1,526	Weighted-average exercise price (indollars)
	44.39 $ 44.88 43.50 43.50

• C. The expiry date, exercisable shares and exercise prices of the employee stock options outstanding at balance sheet date are as follows:

Grant date 12.3.2013 11.6.2015 10.14.2016	No. of stocks Exercise price No. of stocks Exercise price Expiry date (unitinthousands) (indollars) (unitinthousands) (indollars) 12.2.2023 - - $ 319 71.60 $ 11.5.2025 527 35.80 539 35.80 10.13.2026 637 36.30 668 36.30 December31,2023 December31,2022

• D. The fair value of the Company’s employee stock options on Grant Date was evaluated using the combination of Hull & White and the Ritchken trinomial option valuation model. Related information is as follows:

Type of arrangement Employee stock options Employee stock options Employee stock options	Grant date 12.3.2013 11.6.2015 10.14.2016	Stock price (in dollars) 91.70 $ 41.65 40.55	Exercise price (in dollars) 91.70 $ 41.65 40.55	Price volatility 28.50% (Note) 37.63% (Note) 37.20% (Note)	Option Expected Interest life dividends rate 10 years 1.5% 1.7145% 10 years 1.5% 1.2936% 10 years 1.5% 0.9223%	Fair value per unit (in dollars)
						26.045 $ 13.799 13.171

Note: According to daily returns of the Company's stock for the previous year, the annualised volatility were 28.50%, 37.63% and 37.20%, respectively.

(15) RETAINED EARNINGS

• A. Pursuant to the amended R.O.C. Company Act, the current year's after-tax earnings should be used initially to cover any accumulated deficit; thereafter 10% of the remaining earnings should be set aside as legal reserve until the balance of legal reserve is equal to that of paid-in capital. The legal reserve shall be exclusively used to cover accumulated deficit, to issue new stocks, or to distribute cash to shareholders in proportion to their share ownership. The use of legal reserve for the issuance of stocks or cash dividends to shareholders in proportion to their share ownership

~38~

is permitted, provided that the distribution of the reserve is limited to the portion in excess of 25% of the Company’s paid-in capital.

• B. According to the Articles of Incorporation of the Company, since the Company is in a changeable industry environment and the life cycle of the Company is in a stable growth, the appropriation of earnings should consider fund requirements and capital budget to decide how much earnings will be kept or distributed and how much cash dividends will be distributed. According to the Company’s Articles of Incorporation, 10% of the annual net income, except for offsetting any loss of prior years and paying all taxes and dues according to laws, after adding items other than net profit after taxes for the year into undistributed surplus earnings of current year, 10% of the remaining shall be set aside as legal reserve. The remaining net income and the unappropriated retained earnings from prior years can be distributed in accordance with a resolution passed during a meeting of the Board of Directors and approved at the stockholders' meeting. Of the amount to be distributed by the Company, stockholders’ dividends shall comprise 50% to 100% of the unappropriated retained earnings, and the percentage of cash dividends shall not be less than 30% of dividends distributed.

• C. In accordance with the regulations, the Company shall set aside special reserve for the debit balance on other equity items at the balance sheet date before distributing earnings. When debit balance on other equity items is reversed subsequently, the reversed amount could be included in the distributable earnings. The amounts previously set aside by the Company as special reserve on initial application of IFRSs in accordance with Order No. Financial-Supervisory-SecuritiesCorporate-1010012865, dated April 6, 2012, shall be reversed proportionately when the relevant assets are used, disposed of or reclassified subsequently. As of December 31, 2023, the amount of special reserve on initial application of IFRSs provided in accordance with the order from Financial Supervisory Committee was $22,829.

• D. The Company recognised cash dividends distributed to owners amounting to $284,666 ($0.36 (in dollars) per share) and $379,555 ($0.48 (in dollars) per share) for the years ended December 31, 2023 and 2022, respectively. On February 27, 2024, the Board of Directors proposed for the distribution of cash dividends of $237,222 ($0.3(in dollars) per share) from 2023 earnings.

(16) OTHER EQUITY ITEMS

For the year ended December 31, 2023

			Unrealised gain (loss)	Unrealised gain (loss)
	Currency	translation		onvaluation		Total
At January 1	($	43,119)	($	55,057)	($	98,176)
Revaluation		-	(	42,643)	(	42,643)
Currency translation differences
- Group	(	45,037)		-	(	45,037)
At December 31	($	88,156)	($	97,700)	($	185,856)

~39~

	Forthe yearendedDecember31,2022	Forthe yearendedDecember31,2022	Forthe yearendedDecember31,2022	Forthe yearendedDecember31,2022	Forthe yearendedDecember31,2022
		Unrealised gain (loss)
	Currency translation		onvaluation		Total
At January 1	79,248) ($	$	18,123	($	61,125)
Revaluation	-	(	73,180)	(	73,180)
Currency translation differences
- Group	36,129		-		36,129
At December 31	43,119) ($	($	55,057)	($	98,176)

(17) OPERATING REVENUE

• A. Disaggregation of revenue from contracts with customers

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

For the year ended December 31, 2023 Timing of revenue recognition: At a point in time Over time For the year ended December31,2022 Timing of revenue recognition: At a point in time Over time	API Income 2,694,683 $ - 2,694,683 $ API Income 2,870,976 $ - 2,870,976 $	Injection Product Income 68,033 $ - 68,033 $ Injection Product Income 11,880 $ - 11,880 $	Technical Service Income - $ 132,563 132,563 $ Technical Service Income - $ 85,270 85,270 $	Other Operating Income 111,673 $ - 111,673 $ Other Operating Income 101,308 $ - 101,308 $	Total
					2,874,389 $ 132,563 3,006,952 $ Total
					2,984,164 $ 85,270 3,069,434 $

• B. The Company has recognised contract liabilities related to the contract revenue from advance customer payment of $87,883, $55,582 and $49,730 on December 31, 2023, December 31, 2022 and January 1, 2022, respectively.

• C. The revenue recognised that was included in the contract liability balance at the beginning of the year amounted to $47,253 and $41,280 for the years ended December 31, 2023 and 2022, respectively.

(18) INTEREST INCOME

respectively. INTEREST INCOME
Interest income from bank deposits	Forthe years endedDecember31,
	2023 53,046 $	2022
		21,240 $

~40~

(19) OTHER INCOME

Management service revenue Production capacity subsidy income Government grant income Others

	Forthe years ended	Forthe years ended	December31,
	2023		2022
$	9,246	$	9,575
	6,337		7,369
	-		3,480
	3,834		845
$	19,417	$	21,269

(20) OTHER GAINS AND LOSSES

Gain on reversal of impairment loss Net currency exchange (loss) gain Net loss on financial assets/liabilities at fair value through profit or loss Gain on disposal of property, plant and equipment Others

==> picture [225 x 159] intentionally omitted <==

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

For the years ended December 31,
2023 2022
$ 1 $ 634
( 11,071) 37,741
( 7,578) ( 36,985)
- 60
( 6,133) ( 736)
($ 24,781) $ 714
----- End of picture text -----

(21) FINANCE COSTS

==> picture [217 x 15] intentionally omitted <==

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

For the years ended December 31,
----- End of picture text -----

Interest expense: Interest on lease liabilities

2023 6,719 $	2022
	6,817 $

(22) EXPENSES BY NATURE

EXPENSES BY NATURE
Employee benefit expenses Depreciation of property, plant and equipment Depreciation of right-of-use assets Amortisation	Forthe yearendedDecember31,2023
	Operating costs 510,877 $ 293,120 - 578 804,575 $	Operating expenses 282,000 $ 51,712 14,045 2,796 350,553 $	Total
			792,877 $ 344,832 14,045 3,374
			1,155,128 $

~41~

		Forthe yearendedDecember	Forthe yearendedDecember	Forthe yearendedDecember	31,	2022
	Operatingcosts		Operatingexpenses			Total
Employee benefit expenses	$	436,326	$	295,450	$	731,776
Depreciation of property, plant and		252,312		66,453		318,765
equipment
Depreciation of right-of-use assets		-		14,054		14,054
Amortisation		851		1,851		2,702
	$	689,489	$	377,808	$	1,067,297

(23) EMPLOYEE BENEFIT EXPENSES

EMPLOYEE BENEFIT EXPENSES
Salaries and wages Labor and health insurance expenses Pension costs Directors’ compensation Other personnel expenses Salaries and wages Labor and health insurance expenses Pension costs Directors’ compensation Other personnel expenses	Operating costs Operating expenses Total 432,183 $ 226,406 $ 658,589 $ 41,798 18,377 60,175 20,773 8,864 29,637 - 16,678 16,678 16,123 11,675 27,798 510,877 $ 282,000 $ 792,877 $ Forthe yearendedDecember31,2023 Operating costs Operating expenses Total 369,116 $ 237,813 $ 606,929 $ 34,772 19,574 54,346 18,376 9,270 27,646 - 16,302 16,302 14,062 12,491 26,553 436,326 $ 295,450 $ 731,776 $ Forthe yearendedDecember31,2022
		731,776 $

• A. As of December 31, 2023 and 2022, the Company had 748 and 684 employees, including 15 and 14 non-employee directors, respectively.

• B. For the years ended December 31, 2023 and 2022, the average employee benefit expense were $1,059 and $1,068, respectively; while the average wages and salaries were $898 and $906, respectively. For the year ended December 31, 2023, the average employee benefit expense decreased by 0.88%.

• C. Remuneration policy, standards and packages, procedures for determining remuneration and the correlation with operating performance and future risk exposure:

• (a) Remunerations of directors include reward, transportation allowance, income from professional practice, and earnings distribution. The rewards of directors will be determined by the board of directors, based on authorization by the Company as set in Company rules and regulations, after weighing the degree of their participation in the Company’s business operations, the value of their contributions and the rewards of their counterparts in the

~42~

Company. The distribution of earnings to directors, in accordance with Company rules and regulations, will be carried out after being deliberated by the board of directors and ratified by the shareholders during their meeting.

• (b) Remunerations of president and vice presidents include regular pay and employee bonus. The regular pay will be determined taking into consideration their contributions to the Company and the average pay level of their respective peers within the Company. The allocation criteria for employee bonus will be based on Company rules and regulations and the allocation will be done after being deliberated by the board of directors and ratified by the shareholders during their meeting.

• (c) Employees’ compensation including salary, bonus and compensation. Salary shall be paid based on the salary ranges for a particular job grade. Bonus is paid by linking with employees’ and departments’ target achievement and the Company’s operating performance. The allocation criteria for employee bonus will be based on the Company’s Articles of Incorporation and the allocation will be done after being proposed to and deliberated by the board of directors and reported to the shareholders during their meeting.

• (d) Related remunerations are to be determined in accordance with the contributions to the Company and the remuneration levels of the Company’s peers, and the remuneration figures will be revealed in accordance with related rules and regulations of the law.

• D. According to the Articles of Incorporation of the Company, a ratio of distributable profit of the current year, after covering accumulated losses, shall be distributed as employees’ compensation and directors’ remuneration. The ratio shall not be lower than 2% for employees’ compensation and shall not be higher than 2% for directors’ remuneration.

• E. For the years ended December 31, 2023 and 2022, employees’ compensation was accrued at $34,879 and $43,793, respectively; while directors’ remuneration was accrued at $4,593 and $5,660, respectively. The aforementioned amounts were recognised in salary expenses. The expenses recognised for each year was accrued based on the earnings of current year and the percentage specified in the Articles of Incorporation of the Company. The actual amount approved at the Board of Directors’ meeting for employees’ compensation and directors’ remuneration for 2022 was $49,453 which was the same as the estimated amount recognised in the 2022 financial statements. The employees’ compensation was distributed in the form of cash for 2022. On February 27, 2024, the Board of Directors resolved to distribute employees’ compensation and directors’ remuneration of $34,879 and $4,593, respectively, and the employees’ compensation will be distributed in the form of cash. Information about the appropriation of employees’ compensation and directors’ remuneration of the Company as resolved by the Board of Directors will be posted in the “Market Observation Post System” at the website of the Taiwan Stock Exchange.

~43~

(24) INCOME TAX

A. Income tax expense

(a) Components of income tax expense:

ME TAX come tax expense ) Components of income tax expense:
			Forthe years ended			December31,
			2023			2022
Current income tax:
Income tax in the current year		$	71,029		$	109,466
Over provision of prior year’s income tax	(		4,694)	(		3,519)
Total current tax			66,335			105,947
Deferred income tax:
Origination and reversal of temporary differences	(		4,602)	(		21,232)
Income tax expense		$	61,733		$	84,715

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

	Forthe years endedDecember31,	Forthe years endedDecember31,
	2023	2022
Remeasurement of defined benefit obligations	84) ($	597 $

B. Reconciliation between income tax expense and accounting profit:

			Forthe years ended	Forthe years ended	Forthe years ended	December	31,
			2023			2022
Income tax at statutory tax rate		$	69,758		$	87,586
Effect of items disallowed by tax regulation			2,974				3,360
Effect of investment tax credits	(		6,305)	(			2,535)
Over provision of prior year’s income tax	(		4,694)	(			3,519)
Tax effect of tax deduction or exemption			-	(			177)
Income tax expense		$	61,733		$	84,715

~44~

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

Deferred tax assets: Temporary differences: Unrealised loss on inventory market value decline Unrealised loss on components and spare parts market value decline Investment loss Pensions Employee benefits - unused compensated absences Impairment of assets Unrealised exchange loss Unrealised loss on financial liabilities Deferred tax liabilities: Temporary differences: Unrealised gain on financial assets

Recognised in other Recognised in comprehensive January1 profit or loss income December31 60,281 $ 4,650 $ - $ 64,931 $ 16,917 428 - 17,345 439,499 1,761 - 441,260 14,899 4,080) ( 84 10,903 4,715 383 - 5,098 603 - - 603 504 3,193 - 3,697 72 72) ( - - 537,490 $ 6,263 $ 84 $ 543,837 $ - $ 1,661) ($ - $ 1,661) ($ 537,490 $ 4,602 $ 84 $ 542,176 $ Forthe yearendedDecember31,2023

~45~

For the year ended December 31, 2022

Recognised in other Recognised in comprehensive January1 profit or loss income Deferred tax assets: Temporary differences: Unrealised loss on inventory market value decline 59,633 $ 648 $ - $ Unrealised loss on components and spare parts market value decline 16,960 43) ( - Investment loss 418,201 21,298 - Pensions 15,910 414) ( 597) ( Employee benefits - unused compensated absences 5,088 373) ( - Impairment of assets 730 127) ( - Unrealised exchange loss 681 177) ( - Unrealised loss on financial liabilities - 72 - 517,203 $ 20,884 $ 597) ($ Deferred tax liabilities: Temporary differences: Unrealised gain on financial assets 348) ($ 348 $ - $ 516,855 $ 21,232 $ 597) ($	December31
	60,281 $ 16,917 439,499 14,899 4,715 603 504 72
	537,490 $
	- $
	537,490 $

D. The Company’s income tax returns through 2021 have been assessed and approved by the Tax Authority, and there were no disputes existing between the Company and the Authority as of February 27, 2024.

~46~

(25) EARNINGS PER SHARE (“EPS”)

Basic earnings per share Profit attributable to ordinary stockholders Diluted earnings per share Profit attributable to ordinary stockholders Assumed conversion of all dilutive potential ordinary shares Employees' stock options Employees' compensation Profit attributable to ordinary stockholders plus assumed conversion of all dilutive potential ordinary shares Basic earnings per share Profit attributable to ordinary stockholders Diluted earnings per share Profit attributable to ordinary stockholders Assumed conversion of all dilutive potential ordinary shares Employees' stock options Employees' compensation Profit attributable to ordinary stockholders plus assumed conversion of all dilutive potential ordinary shares	Weighted average number of shares outstanding EPS Amount aftertax (sharesinthousands) (indollars) 287,056 $ 790,739 0.36 $ 287,056 $ 790,739 - - - 1,589 287,056 $ 792,328 0.36 $ For theyear ended December31,2023 For theyear ended December31,2022	Weighted average number of shares outstanding EPS Amount aftertax (sharesinthousands) (indollars) 287,056 $ 790,739 0.36 $ 287,056 $ 790,739 - - - 1,589 287,056 $ 792,328 0.36 $ For theyear ended December31,2023 For theyear ended December31,2022	Weighted average number of shares outstanding EPS Amount aftertax (sharesinthousands) (indollars) 287,056 $ 790,739 0.36 $ 287,056 $ 790,739 - - - 1,589 287,056 $ 792,328 0.36 $ For theyear ended December31,2023 For theyear ended December31,2022
	Amount aftertax 353,216 $ 353,216 $ - - 353,216 $	Weighted average number of shares outstanding (sharesinthousands) 790,739 790,739 - 1,942 792,681	EPS (indollars)
			0.45 $
			0.45 $

For the years ended December 31, 2023 and 2022, some abovementioned stock options issued are anti-dilutive, therefore they were not included in the EPS calculation.

~47~

(26) SUPPLEMENTAL CASH FLOW INFORMATION

A. Investing activities with partial cash payments

PPLEMENTAL CASH FLOW INFORMATION Investing activities with partial cash payments
			Forthe years ended		December	31,
			2023		2022
Purchase of property, plant and equipment		$	85,207	$		48,235
Add: Beginning balance of payable
on equipment (listed as “Other payables”)			31,240			25,142
Less: Ending balance of payable on
equipment (listed as “Other payables”)	(		48,123)	(		31,240)
Cash paid for acquisition of property,
plant and equipment		$	68,324	$		42,137
Investing activities with no cash flow effects:
			For the years ended		December	31,
			2023		2022
Prepayments for equipment reclassified to
property, plant and equipment		$	129,890	$	115,229

B. Investing activities with no cash flow effects:

(27) CHANGES IN LIABILITIES FROM FINANCING ACTIVITIES

						Guarantee			Liabilities from
For the year ended			Lease			deposits			financing
December 31, 2023			liabilities			received			activities-gross
At January 1, 2023		$	599,074		$	1,378		$	600,452
Changes in cash flow from
financing activities	(		11,287)	(		1,378)	(		12,665)
At December 31, 2023		$	587,787		$	-		$	587,787
						Guarantee			Liabilities from
For the year ended			Lease			deposits			financing
December31,2022			liabilities			received			activities-gross
At January 1, 2022		$	556,431		$	3,213		$	559,644
Changes in cash flow from
financing activities	(		11,188)	(		1,835)	(		13,023)
Changes in other non-cash
items			53,831			-			53,831
At December 31, 2022		$	599,074		$	1,378		$	600,452

~48~

7. RELATED PARTY TRANSACTIONS

• (1) Parent and ultimate controlling party

The ultimate parent and ultimate controlling party of the Company is Uni-President Enterprises Corp.

• (2) Names of related parties and relationship

Names of related parties and relationship
Names of related parties	Relationship withthe Company
Uni-President Enterprises Corp.	Ultimate parent company
SciAnda (Changshu) Pharmaceuticals, Ltd.	Subsidary
ScinoPharm Singapore Pte Ltd.	Subsidary
SciAnda Shanghai Biochemical Technology,	Subsidary
Ltd.
President Securities Corp.	Associate of ultimate parent company
President Transnet Corp.	Associate of ultimate parent company
President Tokyo Corp.	Associate of ultimate parent company
Mech-President Co., Ltd.	Associate of ultimate parent company
President Chain Store Corp.	Associate of ultimate parent company
President Chain Store Tokyo Marketing	Associate of ultimate parent company
Corp.
President Information Corp.	Associate of ultimate parent company
Duskin Serve Taiwan Co., Ltd.	Associate of ultimate parent company

• (3) Significant transactions and balances with related parties

• A. Operating revenue:

gnificant transactions and balances with related parties Operating revenue:
SciAnda Shanghai Biochemical Technology, Ltd. Subsidiaries	For the years ended December 31,
	2023 2022 33,304 $ 26,358 $ 473 - 33,777 $ 26,358 $

The sales prices and credit terms to related parties were the same with third parties. Collections are made in 90 days after acceptance.

• B. Purchases

SciAnda (Changshu) Pharmaceuticals, Ltd. Subsidiaries	For theyears ended December31,	For theyears ended December31,
	2023 469,392 $ - 469,392 $	2022
		305,114 $ 64
		305,178 $

The purchase prices and payment terms from related parties were the same with third parties. Payments are made in 90 days after acceptance.

~49~

C. Other expenses

For the years ended December 31,

Management service fees:

• － Subsidiaries

• － Ultimate parent company

• － Associates of ultimate parent company

Other expenses

• － Associates of ultimate parent company

	2023		2022
$	13,234	$	12,231
	2,410		1,679
	1,992		2,069
$	17,636	$	15,979
$	2,540	$	3,274

D. Other revenue

Management consultancy revenue:

• － Subsidiaries

E. Other receivables

SciAnda (Changshu) Pharmaceuticals, Ltd.

• F. Accounts payable

SciAnda (Changshu) Pharmaceuticals, Ltd.

	Forthe years ended	Forthe years ended	December31,
	2023		2022
$	9,246	$	9,575
December31,2023		December 31, 2022
$	2,960	$	3,869
December31,2023		December31,2022
$	43,283	$	41,890

G. Other payables

Subsidiaries Associates of ultimate parent company

For theyears ended December31,	For theyears ended December31,
2023 838 $ 1,899 2,737 $	2022
	1,686 $ 1,583
	3,269 $

~50~

H. Endorsements and guarantees provided to related parties

Details of endorsement and guarantees:

	Nature ofsuretyship	December31,2023	December 31, 2022
SciAnda (Changshu)	Financial gurantee	302,725 $	445,163 $
Pharmaceuticals, Ltd.

As of December 31, 2023 and 2022, the actual drawn amount guaranteed by the Company to the subsidiary was $ － .

• (4) Key management compensation

subsidiary was $－. Key management compensation
Salaries and other short-term employee benefits Post-employment benefits Termination benetfits	For the years ended December 31,
	2023 51,354 $ 641 1,540 53,535 $	2022
		51,130 $ 639 1,470
		53,239 $

8. PLEDGED ASSETS

Details of the Company’s assets pledged as collateral are as follows:

Assets December 31, 2023 December 31, 2022 Purpose of collateral Performance guarantee, customs duty and Pledged Time deposits (Note) $ 30,940 $ 30,940 guarantee for credit card

Note: Listed as ‘Other financial assets - non-current’.

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED CONTRACT

COMMITMENTS

• (1) As of December 31, 2023 and 2022, the Company’s unused letters of credit amounted to $4,597 and $8,785, respectively.

• (2) As of December 31, 2023 and 2022, the Company’s remaining balance due for construction in －

• progress and prepayments for equipment was $ and $13,058, respectively.

• (3) Information about endorsement and guarantee to others is provided in Note 7(3) H.

• SIGNIFICANT DISASTER LOSS: None.

• SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE: None.

~51~

12. OTHERS

(1) Capital management

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

• (2) Financial instruments

• A. Financial instruments

  • For details of the Company’s financial instruments by category, refer to Note 6.

• B. Risk management policies

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

  • (b)The Company’s treasury identifies, evaluates and hedges financial risks closely with the Company’s operating units. The Board provides written principles for overall risk management, as well as written policies covering specific areas and matters, such as use of derivative financial instruments and investment of excess liquidity.

  • (c)Information about derivative financial instruments that are used to hedge financial risk are provided in Note 6(2).

• C. Significant financial risks and degrees of financial risks

  • (a) Market risk

    • I. Foreign exchange rate risk

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

    • (ii) To manage their foreign exchange risk arising from future commercial transactions and recognised assets and liabilities, the Company is required to hedge its foreign exchange risk exposure using forward foreign exchange contracts. However, the Company does not adopt hedging accounting. Details of financial assets or liabilities at fair value through profit or loss are provided in Note 6(2).

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

~52~

==> picture [403 x 453] intentionally omitted <==

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

December 31, 2023
Foreign currency Book value
amount (in thousands) Exchange rate (NTD)
(Foreign currency
functional currency)
Financial assets
Monetary items
USD:NTD $ 25,330 30.71 $ 777,884
CNY:NTD 8,780 4.325 37,974
Financial liabilities
Monetary items
USD:NTD 2,125 30.71 65,259
CHF:NTD 132 36.49 4,817
December 31, 2022
Foreign currency Book value
amount (in thousands) Exchange rate (NTD)
(Foreign currency
functional currency)
Financial assets
Monetary items
USD:NTD $ 20,769 30.71 $ 637,816
EUR:NTD 81 32.72 2,650
Financial liabilities
Monetary items
USD:NTD 2,219 30.71 68,145
EUR:NTD 130 32.72 4,254
CHF:NTD 48 33.21 1,594
CNY:NTD 327 4.452 1,456
----- End of picture text -----

(iv)As of December 31, 2023 and 2022, if the NTD:USD exchange rate appreciates/depreciates by 5% with all other factors remaining constant, the effect on the Company’s net profit after tax for the years ended December 31, 2023 and 2022 would increase/decrease by $28,505 and $22,786, respectively. If the exchange rate of NTD to other currencies had appreciated/depreciated by 5% with all other factors remaining constant, the effect on the Company’s net profit after tax for the years ended December 31, 2023 and 2022 is immaterial.

• (v)Total exchange (loss) gain including realised and unrealised arising from significant foreign exchange variation on the monetary items held by the Company for the years ended December 31, 2023 and 2022 amounted to ($11,071) and $37,741, respectively.

~53~

II. Price risk

The Company’s equity securities, which are exposed to price risk, are the held financial assets at fair value through profit or loss, financial assets at fair value through other comprehensive income. To manage its price risk arising from investments in equity securities, the Company diversifies its portfolio and set stop-loss amounts for these instruments. The Company expects no significant market risk.

(b) Credit risk

• I. Credit risk refers to the risk of financial loss to the Company arising from default by the clients or counterparties of financial instruments on the contract obligations. The main factor is that counterparties could not repay in full the accounts receivable based on the agreed terms.

• II. The Company manages its credit risk taking into consideration the entire Company’s concern. For banks and financial institutions, only independently rated parties with a minimum rating of 'A' are accepted. According to the Company’s credit policy, the Company is responsible for managing and analysing the credit risk for each of the new clients before standard payment and delivery terms and conditions are offered. Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings in accordance with limits set by the Board of Directors. The utilisation of credit limits is regularly monitored.

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

• IV. The Company manages its credit risk, whereby if the contract payments are past due over 180 days based on the terms, there has been impairment.

• V. The Company classifies customers’ accounts receivable in accordance with credit rating of customer and credit risk on trade. The Company applies the simplified approach using the provision matrix to estimate expected credit loss, and use the forecastability to adjust historical and timely information to assess the default possibility of accounts receivable. Movements in relation to the Company applying the simplified approach to provide loss allowance for accounts receivable are as follows:

For the years ended December 31,

At January 1 Expected credit losses At December 31	2023 80 $ - 80 $	2022
		40 $ 40
		80 $

~54~

(c) Liquidity risk

• I. Cash flow forecasting is performed by the Company’s treasury department which monitors rolling forecasts of the Company’s liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times so that the Company does not breach borrowing limits or covenants (where applicable) on any of its borrowing facilities.

• II. The Company has undrawn borrowing facilities amounting to $3,128,200 and $2,889,820 as of December 31, 2023 and 2022, respectively.

• III. The following table comprises the Company’s non-derivative financial liabilities and derivative financial liabilities with gross-amount settlement that are grouped by their maturity. Non-derivative financial liabilities are analysed from the balance sheet date to the contract maturity date, and derivative financial liabilities are analysed from the balance sheet date to the expected maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows.

December31,2023 Notes payable Accounts payable Accounts payable - related parties Other payables Lease liabilities Non-derivative financial liabilities: December31,2022 Notes payable Accounts payable Accounts payable - related parties Other payables Lease liabilities Guarantee deposits received Derivative financial liabilities: Forward exchange contracts Non-derivative financial liabilities:	Less than 1 year 1,178 $ 68,363 43,283 328,527 17,664 Less than 1year 1,235 $ 116,251 41,890 346,066 18,006 - 361	Between 1 and2years - $ - - - 16,640 Between 1 and2years - $ - - - 17,664 1,378 -	Between 2 and 5 years - $ - - - 49,921 Between 2 and 5 years - $ - - - 49,921 - -	More than 5 years
				- $ - - - 665,614 More than 5 years
				- $ - - - 682,254 - -

~55~

(3) Fair value information

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

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

• Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. The fair value of the Company’s investment in foreign exchange contracts is included in Level 2.

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

• B. Financial instruments not measured at fair value

• The carrying amounts of cash and cash equivalents, accounts receivable, other receivables (including related parties), guarantee deposits paid, other financial assets - non-current, notes payable, accounts payable (including related parties), other payables and guarantee deposits received are approximate to their fair values.

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

December31,2023 Assets: Recurring fair value measurements Financial assets at fair value through profit or loss Derivative instruments Financial assets at fair value through other comprehensive income Equity securities December31,2022 Assets: Recurring fair value measurements Financial assets at fair value through other comprehensive income Equity securities Liabilities: Recurring fair value measurements Financial liabilities at fair value through profit or loss Derivative instruments	Level 1 - $ - $ Level 1 - $ - $	Level 2 8,304 $ - $ Level 2 - $ 361 $	Level3 - $ 69,973 $ Level3 112,616 $ - $	Total
				8,304 $
				69,973 $
				Total
				112,616 $
				361 $

~56~

• D. The methods and assumptions the Company used to measure fair value are as follows:

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

• (b)When assessing non-standard and low-complexity financial instruments, for example, debt instruments without active market, interest rate swap contracts, foreign exchange swap contracts and options, the Company adopts valuation technique that is widely used by market participants. The inputs used in the valuation method to measure these financial instruments are normally observable in the market.

• (c)Forward foreign exchange contracts are usually valued based on the current forward exchange rate.

• E. For the years ended December 31, 2023 and 2022, there was no transfer between Level 1 and Level 2.

• F. The following chart is the movement of Level 3 for the years ended December 31, 2023 and 2022:

			For the years ended	For the years ended	For the years ended	December 31,
			2023			2022
			Equity instrument			Equityinstrument
At January 1		$	112,616		$	185,796
Loss recognised in other
comprehensive income	(		42,643)	(		73,180)
At December 31		$	69,973		$	112,616

• G. For the years ended December 31, 2023 and 2022, there was no transfer in (out) Level 3.

• H. The Company’s valuation procedures for fair value measurements is categorised within Level 3, which is to verify independent fair value of financial instruments. Such assessment is to ensure the valuation results are reasonable by applying independent information to make results close to current market conditions, confirming the resource of information is independent, reliable and in line with other resources and represented as the exercisable price, and frequently assess to make any other necessary adjustments to the fair value.

~57~

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

Significant Range Relationship Fair value at Valuation unobservable (weighted of inputs to December 31, 2023 technique input average) fair value Non-derivative equity instrument: Unlisted shares $ 69,973 Net asset Not applicable 50% The higher the value net asset value, the higher the fair value Significant Range Relationship Fair value at Valuation unobservable (weighted of inputs to December 31, 2022 technique input average) fair value Non-derivative equity instrument: Unlisted shares $ 112,616 Net asset Not applicable 50% The higher the value net asset value, the higher the fair value

• J. The Company has carefully assessed the valuation models and assumptions used to measure fair value. However, use of different valuation models or assumptions may result in different measurement. If the net assets value increased or decreased by 1% for Level 3, however, the effect on other comprehensive income for the years ended December 31, 2023 and 2022 is immaterial.

13. SUPPLEMENTARY DISCLOSURES

According to current regulatory requirements, the Company is only required to disclose the information for the year ended December 31, 2023.

(1) Significant transactions information

• A. Loans to others: None.

• B. Provision of endorsements and guarantees to others: Refer to table 1.

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

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

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

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

~58~

• G. Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more: Refer to table 3.

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

• I. Trading in derivative instruments undertaken during the reporting periods: Refer to Note 6(2) FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS.

• J. Significant inter-company transactions during the reporting periods: Refer to table 4.

(2) Information on investees

• Names, locations and other information of investee companies (not including investees in Mainland China): Refer to table 5.

• (3) Information on investments in Mainland China

• A. General information: Refer to table 6.

• B. Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland Area: Refer to table 1 and 4.

• (4) Major shareholders information

• Major shareholders information: Refer to table 7.

14. SEGMENT INFORMATION

• Not applicable.

~59~

SCINOPHARM TAIWAN, LTD. STATEMENT OF CASH AND CASH EQUIVALENTS DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

Items	Description		Amount
Cash:
Cash on hand		$	30
Checking accounts			282
Demand deposits－New Taiwan dollar			23,576
－Foreign Currency	Including USD$1,583 thousand @30.71		48,593
	Other foreign currency deposits		422
			72,903
Cash Equivalents:
Time deposits	Maturity date: January 8, 2024 to December 23, 2024
	Interest rates: 0.65% ~1.5%		3,648,500
Bills under repurchase agreements	Maturity date: January 4, 2024
	Interest rate: 1.27%		140,000
			3,788,500
		$	3,861,403

~60~

SCINOPHARM TAIWAN, LTD. STATEMENT OF ACCOUNTS RECEIVABLE, NET DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

Client Name Description Amount Client A Accounts receivable 90,903 $ Client B 〞 87,300 Client C 〞 69,175 Client D 〞 65,652 Client E 〞 59,596 Client F 〞 48,360 Client G 〞 42,734 Client H 〞 39,772 Others (individually less than 5%) 〞 277,643 781,135 Less: Loss allowance 80) ( 781,055 $	Footnote
	－ － － － － － － － －

~61~

SCINOPHARM TAIWAN, LTD. STATEMENT OF INVENTORIES DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

Items Cost Net realisablevalue Raw materials 329,829 $ 328,204 $ Supplies 37,115 38,807 Work in process 485,516 633,814 Finished goods 842,265 1,381,756 1,694,725 2,382,581 $ Less: Allowance for market price decline 324,653) ( 1,370,072 $ Amount	Footnote
	(Note) 〞 〞 〞

Note: Refer to Note 4(11) for the method used in determining net realisable value.

~62~

SCINOPHARM TAIWAN, LTD.

STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR UNDER EQUITY METHOD

FOR THE YEAR ENDED DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

Investees	Number of shares (in thousands) Amount 118,525 1,509,313 $ - 167 118,525 1,509,480 $ Beginningbalance	Increases	Amount - $ 22 22 $	Number of shares (in thousands) Amount - 53,866) ($ - - - 53,866) ($ Decreases	Endingbalance	Endingbalance	Amount 1,455,447 $ 189 1,455,636 $	Market value or	Total amount 1,539,743 $ 189 1,539,932 $ net assets value	Collateral
	Number of shares (in thousands)	Number of shares (in thousands)			Number of shares (in thousands)	Ownership		Unit Price (in dollars) 12.99 $ 94,697
SPT International, Ltd. ScinoPharm Singapore Pte Ltd.	118,525 - 118,525	- - -			118,525 -	100.00% 100.00%				None 〞
					118,525

~63~

SCINOPHARM TAIWAN, LTD. STATEMENT OF CHANGES IN PROPERTY, PLANT AND EQUIPMENT - COST FOR THE YEAR ENDED DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

Refer to Note 6(7).

~64~

SCINOPHARM TAIWAN, LTD.

STATEMENT OF CHANGES IN PROPERTY, PLANT AND EQUIPMENT - ACCUMULATED DEPRECIATION

FOR THE YEAR ENDED DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

Refer to Note 6(7) for account detail and Note 4(13) for the depreciation methods and useful lives of each category.

~65~

SCINOPHARM TAIWAN, LTD.

STATEMENT OF CHANGES IN RIGHT-OF-USE ASSETS - COST FOR THE YEAR ENDED DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

Items Land Buildings and structures	Beginning and ending balance 636,234 $ 2,686 638,920 $	Footnote
		－ －

~66~

SCINOPHARM TAIWAN, LTD.

STATEMENT OF CHANGES IN RIGHT-OF-USE ASSETS - ACCUMULATED DEPRECIATION FOR THE YEAR ENDED DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

Items Land Buildings and structures	Beginningbalance Increases 51,922 $ 12,702 $ 336 1,343 52,258 $ 14,045 $	Endingbalance 64,624 $ 1,679 66,303 $	Footnote
			－ －

~67~

SCINOPHARM TAIWAN, LTD. STATEMENT OF CHANGES IN DEFERRED INCOME TAX ASSETS FOR THE YEAR ENDED DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

Refer to Note 6(24).

~68~

SCINOPHARM TAIWAN, LTD. STATEMENT OF OTHER PAYABLES DECEMBER 31, 2023 (Expressed in thousands of New Taiwan dollars)

Refer to Note 6(10).

~69~

SCINOPHARM TAIWAN, LTD. STATEMENT OF LEASE LIABILITIES - NON-CURRENT DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

Items	Description	Lease period	Discountrate			Amount
Land	－	Rental term from March, 2018	1.13%		$	586,770
		to December, 2068
Buildings and	－	Rental term from October,	1.58%
structures		2022 to October, 2024				1,017
						587,787
			Less: Current portion	(		17,556)
					$	570,231

~70~

SCINOPHARM TAIWAN, LTD. STATEMENT OF OPERATING REVENUE FOR THE YEAR ENDED DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

Items Quantity Amount API 27,758 KG 2,718,144 $ Injection product 45,507 package 68,033 Technical services 132,563 Other operating revenue 111,673 3,030,413 Less: Sales returns and discounts 23,461) ( Operating revenue 3,006,952 $	Footnote
	－ － － －

~71~

SCINOPHARM TAIWAN, LTD. STATEMENT OF OPERATING COSTS FOR THE YEAR ENDED DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

Items			Amount
Raw materials, beginning of year		$	343,287
Add: Raw materials purchased			816,977
Gains on physical inventory			395
Less: Losses on scrap inventory	(		4,479)
Transferred to expenses	(		6,279)
Sale of raw materials	(		2,643)
Raw materials, end of year	(		329,829)
Raw materials used during the year			817,429
Supplies, beginning of year			27,663
Add: Supplies purchased			32,261
Less: Transferred to expenses	(		2,333)
Sale of supplies	(		23)
Supplies, end of year	(		37,115)
Supplies used during the year			20,453
Direct labor			217,034
Manufacturing expenses			883,520
Less: Under applied manufacturing overhead	(		375,063)
Manufacturing cost			1,563,373
Work in process, beginning of year			412,577
Add: Work in process purchased			51,310
Less: Losses on scrap inventory	(		2,074)
Losses on physical inventory	(		116)
Transferred to expenses	(		3,211)
Sale of work in process	(		3,104)
Work in process, end of year	(		485,516)
Cost of finished goods			1,533,239

~72~

SCINOPHARM TAIWAN, LTD. STATEMENT OF OPERATING COSTS (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

Items			Amount
Finished goods, beginning of year		$	635,437
Add: Finished goods purchased			190,368
Less: Losses on scrap inventory	(		35,253)
Losses on physical inventory	(		854)
Transferred to expenses	(		55,858)
Finished goods, end of year	(		842,265)
Cost of goods manufactured and sold			1,424,814
Sale of raw materials			2,643
Sale of Supplies			23
Sale of work in process			3,104
Cost of goods sold			1,430,584
Losses on scrap inventory			41,806
Inventory market price decline			23,248
Losses on physical inventory			575
Under applied manufacturing overhead			375,063
Revenue from sale of scraps	(		2,332)
Cost of sales			1,868,944
Technical service cost			54,715
Operating cost		$	1,923,659

~73~

SCINOPHARM TAIWAN, LTD. STATEMENT OF MANUFACTURING EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

Items Depreciation Salaries and wages Utilities expense Repair and maintenance expense Others (individually less than 5%)	Amount 290,611 $ 228,854 124,622 72,266 167,167 883,520 $	Footnote
		－ － － － －

~74~

SCINOPHARM TAIWAN, LTD. STATEMENT OF TECHNICAL SERVICE COST FOR THE YEAR ENDED DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

Items Salaries and wages Outsourcing pharmaceutical R&D expenses Depreciation Others (individually less than 5%)	Amount 7,068 $ 4,900 2,509 40,238 54,715 $	Footnote
		－ － － －

~75~

SCINOPHARM TAIWAN, LTD. STATEMENT OF SELLING EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

Items Salaries and wages Freight Commission Outsourced service fee Others (individually less than 5%)	Amount 54,197 $ 26,471 22,216 18,598 63,216 184,698 $	Footnote
		－ － － － －

~76~

SCINOPHARM TAIWAN, LTD. STATEMENT OF GENERAL AND ADMINISTRATIVE EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

Items Salaries and wages Depreciation Insurance expense Professional service fee Others (individually less than 5%)	Amount 101,014 $ 37,120 23,701 15,543 105,495 282,873 $	Footnote
		－ － － － －

~77~

SCINOPHARM TAIWAN, LTD. STATEMENT OF RESEARCH AND DEVELOPMENT EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

Items Research expense Salaries and wages Depreciation Repair and maintenance expense Others (individually less than 5%)	Amount 140,571 $ 80,059 28,426 15,759 34,274 299,089 $	Footnote
		－ － － － －

~78~

SCINOPHARM TAIWAN, LTD. STATEMENT OF EMPLOYEE BENEFITS, DEPRECIATION AND AMORTIZATION BY FUNCTION FOR THE YEAR ENDED DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

Refer to Notes 6(22) and 6(23).

~79~

ScinoPharm Taiwan, Ltd.

Table 1

Expressed in thousands of NTD

Provision of endorsements and guarantees to others

For the year ended December 31, 2023

Number	Endorser/ guarantor	Party being endorsed/guaranteed	Party being endorsed/guaranteed	Limit on endorsements/ guarantees provided for a single party （Note 2）	Maximum outstanding endorsement/ guarantee amount during theyear	Outstanding endorsement/ guarantee amount at December 31, 2023	Actual amount drawn down	Amount of endorsements/ guarantees secured with collateral	Ratio of accumulated endorsement/ guarantee amount to net asset value of the endorser/ guarantor company	Ceiling on total amount of endorsements/ guarantees provided （Note 2）	Provision of endorsements/ guarantees by parent company to subsidiary	Provision of endorsements/ guarantees by subsidiary to parent company	Provision of endorsements/ guarantees to the party in Mainland China	Footnote
		Companyname	Relationship with the endorser/ guarantor （Note 1）
0	ScinoPharm Taiwan, Ltd.	SciAnda (Changshu) Pharmaceuticals, Ltd.	1	10,364,430 $	747,102 $	302,725 $	- $	- $	2.92%	10,364,430 $	Y	N	Y	－

Note 1: The following code represents the relationship with the Company:

• 1.A company in which the Company directly and indirectly holds over 50% of the voting shares.

• Note 2: 1.The limit of total amount of endorsement is 50% of the Company's net worth, for 100% directly or indirectly owned subsidiaries, the maximum amount is 100% of its net worth. The limit of total amount of the Group's endorsement and guarantee is 100% of the Group's net worth.

• For any endorsement or guarantee provided by the Company due to business dealings, the amount of endorsement or guarantees shall be limited to the business dealing amount of the most recent year or the current year. The business dealing amount is product purchase or sale amount between the entities, whichever is higher.

Note 3: The numbers in the table that involves foreign currencies are expressed in New Taiwan Dollars according to the exchange rate posted on the date of the financial statements (CNY:NTD 1:4.325 ；USD:NTD 1:30.71).

Table 1, Page 1

ScinoPharm Taiwan, Ltd.

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

			December 31,	2023
Table 2 Securities held by	Marketable securities	Relationship with the securities issuer	General ledger account		As of December31,2022		Fairvalue Footnote Expressed in thousands of NTD
				Number of shares	Bookvalue	Ownership (%)	Fairvalue
ScinoPharm Taiwan, Ltd.	Stocks: Tanvex Biologics, Inc. SYNGEN, INC.	The Company is a director of Tanvex Biologics, Inc. －	Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through profit or loss - non-current	28,800,000 245,000	69,973 $ -	16.84% 7.40%	69,973 $ -	－ －

Table 2, Page 1

Table 3

Expressed in thousands of NTD

ScinoPharm Taiwan, Ltd.

• Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid in capital or more For the year ended December 31, 2023

Purchaser/seller	Counterparty	Relationship with the counterparty			Transaction		transactions compared to third party Differences in transaction terms	transactions compared to third party Differences in transaction terms	Notes/accounts receivable(payable)	Notes/accounts receivable(payable)	Footnote
			Purchases(sales)	Amount	Percentage of total purchases(sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable(payable)
ScinoPharmTaiwan, Ltd. SciAnda (Changshu) Pharmaceuticals, Ltd.	SciAnda (Changshu) Pharmaceuticals, Ltd. ScinoPharm Taiwan, Ltd.	Subsidary The Company	Purchases (Sales)	469,392 $ 469,392) (	43% (75%)	Closes its accounts 90 days from the end of each month Closes its accounts 90 days from the end of each month	$ - -	－ －	43,283 $ 43,283) (	38% (85%)	－ －

Table 3, Page 1

Table 4

Expressed in thousands of NTD

ScinoPharm Taiwan, Ltd.

- Significant inter company transactions during the reporting period

For the year ended December 31, 2023

Number (Note 2)	Companyname	Counterparty	Relationship (Note3)		Transactions	Transactions
				General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets(Note 4)
0	ScinoPharm Taiwan, Ltd.	SciAnda (Changshu) Pharmaceuticals, Ltd. SciAnda Shanghai Biochemical Technology, Ltd.	1 1 1 1 1	Purchases Accounts payable Endorsements and guarantees Sales Management service fee	469,392 $ 43,283 302,725 33,304 12,793	Closes its accounts 90 days from the end of each month Closes its accounts 90 days from the end of each month － Closes its accounts 90 days from the end of each month －	15% － 3% 1% －

Note 1: Significant inter-company transactions during the reporting periods are not disclosed since these were corresponding transactions. Only transactions over NT$10 million are material.

Note 2: The numbers filled in for the transaction company in respect of inter-company transactions are as follows:

• (1) Parent company is ‘0’.

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

Note 3: Relationship between transaction company and counterparty is classified into the following three categories:

• (1) Parent company to subsidiary.

(2) Subsidiary to parent company.

(3) Subsidiary to subsidiary.

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

Note 5: The numbers in the table that involves foreign currencies are expressed in New Taiwan Dollars according to the exchange rate posted on the date of the financial statements (CNY:NTD 1:4.325 ； USD:NTD 1:30.71).

Table 4, Page 1

Table 5

Expressed in thousands of NTD

ScinoPharm Taiwan, Ltd.

Names, locations and other information of investee companies (not including investees in Mainland China) For the year ended December 31, 2023

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held	as at December 31,2023	as at December 31,2023	Net profit of the investee for the year ended December 31,2023	Investment income (loss) recognised by the Company for the year ended December 31,2023	Footnote
				Balance as at December 31,2023	Balance as at December 31,2022	Number of shares	Ownership (%)	Book value
ScinoPharm Taiwan, Ltd.	SPT International, Ltd. ScinoPharm Singapore Pte Ltd.	Tortola, British Virgin Islands Singapore	Professional investment Professional investment	3,639,299 $ -	3,639,299 $ -	118,524,644 2	100.00 100.00	1,455,447 $ 189	6,802 $ 23	8,830) ($ 23	Subsidiary Subsidiary

Note : Initial investment amount in the table that involves foreign currencies are expressed in New Taiwan Dollars according to exchange rate posted on the date of financial statements (USD:NTD 1:30.71).

Table 5, Page 1

ScinoPharm Taiwan, Ltd.

Expressed in thousands of NTD

Information on investments in Mainland China － Basic information

For the year ended December 31, 2023

Table 6

Investee in Mainland China	Main business activities	Paid-in capital	Investment method	Accumulated amount of remittance from Taiwan to Mainland China as of January 1, 2023	Amount remitted from Taiwan to Mainland China/ Amount remitted back to Taiwan for the year ended December 31,2023	Amount remitted from Taiwan to Mainland China/ Amount remitted back to Taiwan for the year ended December 31,2023	Accumulated amount of remittance from Taiwan to Mainland China as of December 31,2023	Net income of investee for the year ended December 31, 2023	Ownership held by the Company (direct or indirect)	Investment income recognised by the Company for the year ended December 31, 2023 （Note 2）	Book value of investments in Mainland China as of December 31, 2023	Accumulated amount of investment income remitted back to Taiwan as of December 31, 2023	Footnote
					Remitted to Mainland China	Remitted back to Taiwan
SciAnda (Changshu) Pharmaceuticals, Ltd. SciAnda Shanghai Biochemical Technology, Ltd.	Research, development, and manufacture of API and new drugs, sale produced products, etc. Import, export and sales of API and intermediates, etc.	3,577,133 $ 36,846	（Note 1） （Note 1）	3,568,671 $ 36,846	- $ -	- $ -	3,568,671 $ 36,846	5,907 $ 954	100% 100%	5,907 $ 954	1,517,736 $ 18,881	- $ -	Subsidary Subsidary

Companyname	Accumulated amount of remittance from Taiwan to Mainland China as of December 31,2023	Investment amount approved by the Investment Commission of the Ministry of Economic Affairs(MOEA)	Ceiling on investments in Mainland China imposed by the Investment Commission of MOEA(Note 3)
ScinoPharm Taiwan, Ltd.	$ 3,643,103	3,643,103 $	6,218,658 $

Note 1: Indirect investment in Mainland China through company set up in a third region, SPT International, Ltd.

Note 2: The investment income recognized by the Company for the year ended December 31, 2023 was based on audited financial statements of investee companies as of and for the year ended December 31, 2023. Note 3: The ceiling amount is 60% of the higher of net worth or consolidated net worth.

Note 4: The numbers in the table that involves foreign currencies are expressed in New Taiwan Dollars according to the exchange rate posted on the date of the financial statements (USD:NTD 1:30.71).

Table 6, Page 1

ScinoPharm Taiwan, Ltd.

Major shareholders information

December 31, 2023

Table 7

Number of shares

Name of the keyshareholder	Common stock	Preferred stock	Ownership (%)	Footnote
Uni-President Enterprises Corp. National Development Fund, Executive Yuan	299,968,639 109,539,014	－ －	37.94% 13.85%	－ －

Note: The major shareholders information was derived from the data that the Company issued common shares (including treasury shares) and preference shares in dematerialised form which were registered and held by the shareholders above 5% on the last operating date of each quarter and was calculated by Taiwan Depository & Clearing Corporation.

The share capital which was recorded in the financial statements is different from the actual number of shares issued in dematerialised form because of the difference in the calculation basis.

Table 7, Page 1