SPT - Interim / Quarterly Report 2023

SCINOPHARM TAIWAN, LTD. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS’ REVIEW REPORT JUNE 30, 2023 AND 2022

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’ REVIEW REPORT TRANSLATED FROM CHINESE

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

Introduction

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

Scope of review

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

~2~

Basis for qualified conclusion

The financial statements of certain insignificant consolidated subsidiaries and supplementary disclosures in Note 13 were not reviewed by independent auditors. Those statements reflect total assets of $20,020 thousand and $23,788 thousand, both － constituting % of the consolidated total assets, and total liabilities of $945 thousand － and $4,859 thousand, both constituting % of the consolidated total liabilities as at June 30, 2023 and 2022, respectively, and total comprehensive income (loss) of ($6,110) thousand, ($57) thousand, ($5,914) thousand and ($186) thousand, constituting (202%), －－ %, (53%) and % of the consolidated total comprehensive income for the three-month and six-month periods then ended, respectively.

Qualified conclusion

Except for the adjustments to the consolidated financial statements, if any, as might have been determined to be necessary had the financial statements of certain insignificant subsidiaries and supplementary disclosures of Note 13 been reviewed by independent auditors as described in the Basis for qualified conclusion section above, based on our reviews, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Group as at June 30, 2023 and 2022, and its consolidated financial performance for the three-month and six-month periods then ended and its consolidated cash flows for the six-month periods then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, “Interim Financial Reporting” that came into effect as endorsed by the Financial Supervisory Commission.

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Yeh, Fang-Ting

Independent Auditors

Lin, Tzu-Shu

PricewaterhouseCoopers, Taiwan Republic of China August 7, 2023

------------------------------------------------------------------------------------------------------------------------------The accompanying consolidated financial statements are not intended to present the financial position and results of operations and cash flows in accordance with accounting principles generally accepted in countries and jurisdictions other than the Republic of China. The standards, procedures and practices in the Republic of China governing the audit of such financial statements may differ from those generally accepted in countries and jurisdictions other than the Republic of China. Accordingly, the accompanying consolidated financial statements and independent auditors’ 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. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS JUNE 30, 2023, DECEMBER 31, 2022 AND JUNE 30, 2022 (Expressed in thousands of New Taiwan dollars)

Assets	Notes	June 30, 2023 AMOUNT % `$` `4,241,784 36` `556,217` `5` `23,298` `-` `1,492,629 12` `133,832` `1` `-` `-` `6,447,760 54` `80,634` `1` `3,674,237 31` `644,177` `6` `10,374` `-` `638,390` `5` `360,650` `3` `2,343` `-` `30,940` `-` `5,441,745 46` `$` `11,889,505 100`	June 30, 2022	June 30, 2022
		AMOUNT `$` `4,241,784` `556,217` `23,298` `1,492,629` `133,832` `-` `6,447,760` `80,634` `3,674,237` `644,177` `10,374` `638,390` `360,650` `2,343` `30,940` `5,441,745` `$` `11,889,505`	AMOUNT `$` `4,345,460` `439,082` `18,217` `1,266,303` `143,093` `50,634` `6,262,789` `215,140` `4,000,483` `659,501` `11,912` `632,377` `221,446` `2,622` `29,270` `5,772,751` `$` `12,035,540`	%
Current assets 1100 Cash and cash equivalents 1170 Accounts receivable, net 1200 Other receivables 130X Inventories 1410 Prepayments 1476 Other financial assets - current 11XX Total current assets Non-current assets 1517 Financial assets at fair value through other comprehensive income - non-current 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	6(1) 6(3) and 12 6(4) 6(1), 8 and 9 6(5) 6(6) 6(7) 6(23) 6(6) 6(1) and 8			`36` `4` `-` `11` `1` `-`
				`52`
				`2` `33` `6` `-` `5` `2` `-` `-`
				`48`
				`100`

(Continued)

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SCINOPHARM TAIWAN, LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

JUNE 30, 2023, DECEMBER 31, 2022 AND JUNE 30, 2022 (Expressed in thousands of New Taiwan dollars)

					June 30, 2023				December 31, 2022	December 31, 2022			June 30, 2022
	Liabilities and Equity	Notes			AMOUNT	%			AMOUNT	%			AMOUNT	%
	Current liabilities
2100	Short-term borrowings	6(8)		`$`	`79,869`		`1`	`$`	`77,599`		`1`	`$`	`23,073`	`-`
2120	Financial liabilities at fair value	6(2)
	through profit or loss - current				`2,408`		`-`		`361`		`-`		`268`	`-`
2130	Contract liabilities - current	6(16)			`137,002`		`1`		`67,752`		`1`		`91,598`	`1`
2150	Notes payable				`2,049`		`-`		`1,235`		`-`		`1,982`	`-`
2170	Accounts payable				`173,563`		`2`		`125,264`		`1`		`115,879`	`1`
2200	Other payables	6(9)			`644,518`		`5`		`413,354`		`3`		`677,424`	`6`
2230	Current income tax liabilities	6(23)			`23,286`		`-`		`99,636`		`1`		`57,970`	`-`
2280	Lease liabilities - current				`17,893`		`-`		`17,893`		`-`		`16,880`	`-`
2310	Advance receipts				`-`		`-`		`-`		`-`		`1,740`	`-`
21XX	Total current liabilities				`1,080,588`		`9`		`803,094`		`7`		`986,814`	`8`
	Non-current liabilities
2570	Deferred income tax liabilities	6(23)			`904`		`-`		`-`		`-`		`444`	`-`
2580	Lease liabilities - non-current				`575,554`		`5`		`581,181`		`5`		`585,112`	`5`
2640	Net defined benefit liabilities -	6(10)
	non-current				`54,912`		`-`		`74,491`		`-`		`78,508`	`1`
2645	Guarantee deposits received				`902`		`-`		`2,357`		`-`		`1,910`	`-`
25XX	Total non-current
	liabilities				`632,272`		`5`		`658,029`		`5`		`665,974`	`6`
2XXX	Total liabilities				`1,712,860`	`14`			`1,461,123`	`12`			`1,652,788`	`14`
	Equity attributable to owners of
	the parent
	Share capital	6(11)
3110	Common stock				`7,907,392`	`67`			`7,907,392`	`66`			`7,907,392`	`66`
3200	Capital surplus	6(12)			`1,294,689`	`11`			`1,294,689`	`10`			`1,294,689`	`10`
	Retained earnings	6(14)
3310	Legal reserve				`755,145`		`6`		`719,584`		`6`		`719,584`	`6`
3320	Special reserve				`98,176`		`1`		`61,125`		`1`		`61,125`	`1`
3350	Unappropriated earnings				`307,120`		`3`		`565,439`		`5`		`400,915`	`3`
3400	Other equity interest	6(5)(15)	`(`		`185,877 )(`		`2) (`		`98,176)`		`- (`		`953)`	`-`
3XXX	Total equity				`10,176,645`	`86`			`10,450,053`	`88`			`10,382,752`	`86`
	Significant contingent liabilities	9
	and unrecognised contract
	commitments
3X2X	Total liabilities and equity			`$`	`11,889,505`	`100`		`$`	`11,911,176`	`100`		`$`	`12,035,540`	`100`

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

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SCINOPHARM TAIWAN, LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME SIX MONTHS ENDED JUNE 30, 2023 AND 2022

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

					Three months ended June 30	Three months ended June 30	Three months ended June 30	Three months ended June 30			Six months ended June 30	Six months ended June 30	Six months ended June 30	Six months ended June 30
					2023			2022			2023			2022
	Items	Notes			AMOUNT	%	AMOUNT		%		AMOUNT	%	AMOUNT		%
4000	Operating revenue	6(16)		`$`	`754,901`	`100`	`$`	`805,538`	`100`	`$`	`1,403,331`	`100`	`$`	`1,543,477`	`100`
5000	Operating costs	6(4)(10)(21)(2
		2)	`(`		`471,957 ) (`	`63) (`		`459,665 ) (`	`57) (`		`876,495 ) (`	`62) (`		`900,064) (`	`59 )`
5900	Net operating margin				`282,944`	`37`		`345,873`	`43`		`526,836`	`38`		`643,413`	`41`
	Operating expenses	6(7)(10)(21)(2
		2), 7 and 12
6100	Selling expenses		`(`		`45,824 ) (`	`6) (`		`43,923 ) (`	`6) (`		`79,484 ) (`	`6) (`		`78,525) (`	`5 )`
6200	General and administrative
	expenses		`(`		`87,948 ) (`	`12) (`		`100,499 ) (`	`13) (`		`173,311 ) (`	`12) (`		`225,889) (`	`15 )`
6300	Research and development
	expenses		`(`		`102,120 ) (`	`13) (`		`67,103 ) (`	`8) (`		`178,359 ) (`	`13) (`		`116,184) (`	`7 )`
6450	Expected credit impairment
	(loss) gain		`(`		`478 )`	`-`		`177`	`- (`		`269 )`	`-`		`140`	`-`
6000	Total operating expenses		`(`		`236,370 ) (`	`31) (`		`211,348 ) (`	`27) (`		`431,423 ) (`	`31) (`		`420,458) (`	`27 )`
6900	Operating profit				`46,574`	`6`		`134,525`	`16`		`95,413`	`7`		`222,955`	`14`
	Non-operating income and
	expenses
7100	Interest income	6(17)			`13,779`	`2`		`3,878`	`1`		`26,619`	`2`		`7,636`	`1`
7010	Other income	6(18)			`5,852`	`1`		`3,317`	`-`		`8,527`	`-`		`6,389`	`-`
7020	Other gains and losses	6(2)(19) and
		12			`2,309`	`-`		`1,143`	`- (`		`6,930 ) (`	`1)`		`4,237`	`-`
7050	Finance costs	6(7)(20)	`(`		`2,395 ) (`	`1) (`		`1,919 )`	`- (`		`4,811 )`	`- (`		`3,711)`	`-`
7000	Total non-operating income
	and expenses				`19,545`	`2`		`6,419`	`1`		`23,405`	`1`		`14,551`	`1`
7900	Profit before income tax				`66,119`	`8`		`140,944`	`17`		`118,818`	`8`		`237,506`	`15`
7950	Income tax expense	6(23)	`(`		`9,171 ) (`	`1) (`		`27,109 ) (`	`3) (`		`19,859 ) (`	`1) (`		`46,425) (`	`3 )`
8200	Profit for the period			`$`	`56,948`	`7`	`$`	`113,835`	`14`	`$`	`98,959`	`7`	`$`	`191,081`	`12`
	Other comprehensive income
	Components of other
	comprehensive income (loss)
	that will not be reclassified to
	profit or loss
8316	Unrealised gain (loss) from	6(5)(15)
	equity instruments measured
	at fair value through other
	comprehensive income		`($`		`5,822 ) (`	`1)`	`$`	`37,919`	`5 ($`		`31,982 ) (`	`2)`	`$`	`29,344`	`2`
	Components of other
	comprehensive income (loss)
	that will be reclassified to
	profit or loss
8361	Financial statements	6(15)
	translation differences of
	foreign operations		`(`		`48,098 ) (`	`6) (`		`29,063 ) (`	`4) (`		`55,719 ) (`	`4)`		`30,828`	`2`
8300	Total other comprehensive
	(loss) income for the period		`($`		`53,920 ) (`	`7)`	`$`	`8,856`	`1 ($`		`87,701 ) (`	`6)`	`$`	`60,172`	`4`
8500	Total comprehensive income for
	the period			`$`	`3,028`	`-`	`$`	`122,691`	`15`	`$`	`11,258`	`1`	`$`	`251,253`	`16`
	Profit attributable to:
8610	Owners of the parent			`$`	`56,948`	`7`	`$`	`113,835`	`14`	`$`	`98,959`	`7`	`$`	`191,081`	`12`
	Comprehensive income
	attributable to:
8710	Owners of the parent			`$`	`3,028`	`-`	`$`	`122,691`	`15`	`$`	`11,258`	`1`	`$`	`251,253`	`16`
	Earnings per share (in dollars)	6(24)
9750	Basic			`$`		`0.07`	`$`		`0.14`	`$`		`0.13`	`$`		`0.24`
9850	Diluted			`$`		`0.07`	`$`		`0.14`	`$`		`0.13`	`$`		`0.24`

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

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SCINOPHARM TAIWAN, LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY SIX MONTHS ENDED JUNE 30, 2023 AND 2022 (Expressed in thousands of New Taiwan dollars)

Notes			Equity attributable to owners	Equity attributable to owners	of the parent	of the parent
	Share capital - common stock	Capital reserve		Retained Earnings			Other Equity Interest
			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)(15) 6(14) 6(5)(15) 6(14)	`$` `7,907,392` `-` `-` `-` `-` `-` `-` `$` `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`	`$` `657,981` `191,081` `-` `191,081` `(` `40,510 )` `(` `28,082 )` `(` `379,555 )` `$` `400,915` `$` `565,439` `98,959` `-` `98,959` `(` `35,561 )` `(` `37,051 )` `(` `284,666 )` `$` `307,120`		`($` `79,248` `)` `-` `30,828` `30,828` `-` `-` `-` `($` `48,420` `)` `($` `43,119` `)` `-` `(` `55,719` `)` `(` `55,719` `)` `-` `-` `-` `($` `98,838` `)`	`$` `18,123` `-` `29,344` `29,344` `-` `-` `-` `$` `47,467` `($` `55,057 )` `-` `(` `31,982 )` `(` `31,982 )` `-` `-` `-` `($` `87,039 )`	`$` `10,511,054` `191,081` `60,172` `251,253` `-` `-` `(` `379,555` `)` `$` `10,382,752` `$` `10,450,053` `98,959` `(` `87,701` `)` `11,258` `-` `-` `(` `284,666` `)` `$` `10,176,645`

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

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SCINOPHARM TAIWAN, LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS SIX MONTHS ENDED JUNE 30, 2023 AND 2022 (Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax
Adjustments
Adjustments to reconcile profit (loss)
Loss on valuation of financial assets and
liabilities at fair value through profit or loss
Expected credit impairment loss (gain)

(Reversal of allowance for) loss on inventory
market price decline

Depreciation of property, plant and equipment

Depreciation of right-of-use assets

Loss on disposal of property, plant and
equipment

Amortisation

Interest income

Interest expense

Changes in operating assets and liabilities
Changes in operating assets
Accounts receivable
Other receivables
Inventories
Prepayments
Changes in operating liabilities
Contract liabilities - current
Notes payable
Accounts payable
Other payables
Net defined benefit liabilities - non-current
Cash inflow generated from operations
Interest received
Interest paid
Income tax paid
Net cash flows from operating activities Six months ended June 30
Notes
2023
2022
$
118,818 $
237,506
2,047
2,010
12
269 (
140 )
6(4)
(
5,596 )
16,370
6(6)(21)
219,572
194,801
6(7)(21)
7,921
7,932
6(19)
328
704
6(21)
2,971
2,664
6(17)
(
26,619 ) (
7,636 )
6(20)
4,811
3,711
78,792 (
78,697 )
(
4,027 )
15,784
(
295,935 )
60,805
(
2,398 ) (
45,972 )
69,250
21,033
814
810
48,299
46,189
(
72,665 ) (
31,387 )
(
19,579 ) (
1,038 )
127,073
445,449
25,630
6,431
(
4,714 ) (
3,711 )
(
99,822 ) (
75,099 )
48,167
373,070

(Continued)

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SCINOPHARM TAIWAN, LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS SIX MONTHS ENDED JUNE 30, 2023 AND 2022 (Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM INVESTING ACTIVITIES
Increase in financial assets at amortised cost -
current
Repayment of principal from financial assets at
amortised cost - current
Decrease (increase) in other financial assets -
current
Cash paid for acquisition of property, plant and
equipment

Acquisition of intangible assets
Increase in prepayments for equipment
Decrease (increase) in guarantee deposits paid
Net cash flows used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Increase in short-term borrowings

Repayment of the principal portion of lease
liabilities

Decrease in guarantee deposits received

Net cash flows (used in) from financing
activities
Effect of foreign exchange rate changes
Net (decrease) increase in cash and cash equivalents
Cash and cash equivalents at beginning of period

Cash and cash equivalents at end of period Six months ended June 30
Notes
2023
2022
$
- ($
44,149 )
-
44,149
51,132 (
1,665 )
6(25)
(
16,470 ) (
36,481 )
(
3,600 ) (
5,672 )
(
119,873 ) (
87,723 )
207 (
104 )
(
88,604 ) (
131,645 )
6(26)
5,169
23,064
6(26)
(
5,627 ) (
5,584 )
6(26)
(
1,422 ) (
1,746 )
(
1,880 )
15,734
(
10,608 )
7,380
(
52,925 )
264,539
6(1)
4,294,709
4,080,921
6(1)
$
4,241,784 $
4,345,460

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

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SCINOPHARM TAIWAN, LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 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 and its subsidiaries (the “Group”) are primarily engaged in the manufacture of western medicines and other chemical materials, biological technology services, intellectual property rights, international trade and research, development and manufacture 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. For more information regarding the manufacturing and trading activities the Company and its subsidiaries are engaged in, refer to Note 4(3), “Basis of consolidation”.
(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 CONSOLIDATED FINANCIAL STATEMENTS AND PROCEDURES FOR AUTHORISATION

These consolidated financial statements were authorized for issuance by the Board of Directors on August 7, 2023.

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

(1) Effect of the adoption of new issuances of or amendments to International Financial Reporting Standards (“IFRS”) 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:

2023 are as follows:
New Standards,Interpretations andAmendments	Effective date by IASB
Amendments to IAS 1, ‘Disclosure of accounting policies’ Amendments to IAS 8, ‘Definition of accounting estimates’ Amendments to IAS 12, ‘Deferred tax related to assets and liabilities arising from a single transaction’	January 1, 2023 January 1, 2023 January 1, 2023

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

~11~

(2) Effect of new issuances of or amendments to IFRSs as endorsed by the FSC but not yet adopted by

the Group

None.

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

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

==> picture [485 x 31] intentionally omitted <==

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

Effective date by
New Standards, Interpretations and Amendments IASB
----- End of picture text -----

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
Amendments to IFRS 16, ‘Lease liability in a sale and leaseback’	January 1, 2024
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 1, ‘Classification of liabilities as current or non-	January 1, 2024
current’
Amendments to IAS 1, ‘Non-current liabilities with covenants’	January 1, 2024
Amendments to IAS 7 and IFRS 7, ‘Supplier finance arrangements’	January 1, 2024
Amendments to IAS 12, ‘International tax reform - pillar two model	May 23, 2023
rules’

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

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Except for the compliance statement, basis of preparation, basis of consolidation and the additional descriptions described below, the other principal accounting policies are in agreement with Note 4 of the consolidated financial statements for the year ended December 31, 2022. These policies have been consistently applied to all the periods presented, unless otherwise stated.

(1) Compliance statement

A. The consolidated financial statements of the Group have been prepared in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers”, and IAS 34, ‘Interim Financial Reporting’ that came into effect as endorsed by the FSC.
B. The consolidated financial statements should be read together with the consolidated financial statements for the year ended December 31, 2022.

(2) Basis of preparation

A. Except for the following items, these consolidated 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.

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

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

The basis for preparation of these consolidated financial statements is consistent with those for the preparation of consolidated financial statements for the year ended December 31, 2022.

B. Subsidiaries included in the consolidated financial statements:

Name of Investors	Name of Subsidiaries	Business activities Professional investment Professional investment Research, development and manufacture of API and new drugs, sales of self-produced products, etc. Import, export and sales of API and intermediates, etc.	June 30, December 31, June 30, 2023 2022 2022 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 Company Percentage owned by the	Note
			June 30, December 31, 2023 2022 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
ScinoPharm Taiwan, Ltd. ScinoPharm Taiwan, Ltd. SPT International, Ltd. SPT International, Ltd.	SPT International, Ltd. ScinoPharm Singapore Pte Ltd. SciAnda (Changshu) Pharmaceuticals, Ltd. SciAnda Shanghai Biochemical Technology, Ltd.			`－` (Note) `－` (Note)

Note : The financial statements of the entity as of and for the six-month periods ended June 30,

2023 and 2022 were not reviewed by independent auditors as the entity did not meet the definition of a significant subsidiary.

C. Subsidiaries not included in the consolidated financial statements: None.
D. Adjustments for subsidiaries with different balance sheet dates: None.
E. Significant restrictions: None.
F. Subsidiaries that have non-controlling interests that are material to the Group: None.

~13~

(4) Employee benefits

Defined benefit plans

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

(5) Income tax

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

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

UNCERTAINTY

There have been no significant changes during the period. Refer to Note 5 of the consolidated financial statements for the year ended December 31, 2022.

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) CASH AND CASH EQUIVALENTS

CASH AND CASH EQUIVALENTS
Cash: Cash on hand Checking accounts and demand deposits Cash equivalents: Time deposits Bills under repurchase agreements	June 30,2023 155 $ 136,989 137,144 3,989,640 115,000 4,104,640 4,241,784 $	December31,2022 119 $ 146,140 146,259 3,958,500 189,950 4,148,450 4,294,709 $	June 30,2022 158 $ 183,436 183,594 3,887,500 274,366
			4,161,866
			4,345,460 $

A. The Group transacts with a variety of financial institutions all with high credit quality to disperse credit risk, so it expects that the probability of counterparty default is remote.
B. Part of the Group’s bank deposits (listed as “Other financial assets - current”) are subject to provisional attachment due to the contract disputes. Refer to Note 8, “ Pledged assets” and Note 9, “Significant contingent liabilities and unrecognised contract commitments” for details.
C. Details of the Group’s time deposits pledged to others as collateral (listed as “Other financial assets - non-current”) as of June 30, 2023, December 31, 2022, and June 30, 2022 are provided in Note 8, “Pledged assets”.

~14~

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

==> picture [491 x 199] intentionally omitted <==

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

Items June 30, 2023 December 31, 2022 June 30, 2022
Current items:
Financial liabilities mandatorily
measured at fair value through profit
or loss
Derivatives ($ 2,408) ($ 361) ($ 268)
Non-current items:
Financial assets mandatorily measured
at fair value through profit or loss
Unlisted stocks $ 4,620 $ 4,620 $ 4,620
Valuation adjustment ( 4,620) ( 4,620) ( 4,620)
- - -
$ $ $
----- End of picture text -----

A. The Group recognised net loss of $7,785, $14,822, $7,702 and $27,622 on financial assets and liabilities at fair value through profit or loss (listed as “ Other gains and losses”) for the threemonth and six-month periods ended June 30, 2023 and 2022, respectively.
B. The Group entered into contracts relating to derivative financial assets and liabilities which were not accounted for under hedge accounting. The information is listed below (Units in thousands of currencies indicated):

==> picture [471 x 163] intentionally omitted <==

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

June 30, 2023
Items Contract amount Contract period
Forward foreign exchange contracts USD 7,880 5.2023~9.2023
December 31, 2022
Items Contract amount Contract period
Forward foreign exchange contracts USD 10,468 11.2022~2.2023
June 30, 2022
Items Contract amount Contract period
Forward foreign exchange contracts USD 12,175 5.2022~9.2022
----- End of picture text -----

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

C. The Group has no financial assets at fair value through profit or loss pledged to others as of June 30, 2023, December 31, 2022, and June 30, 2022.

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(3) ACCOUNTS RECEIVABLE, NET

			June 30,2023	December	31,2022			June 30,2022
Accounts receivable		$	556,774	$	635,566		$	439,107
Less: Loss allowance	(		557)	(	303)	(		25)
		$	556,217	$	635,263		$	439,082
A. The ageing analysis of accounts	receivable is as follows:
			June30,2023	December	31, 2022			June 30, 2022
Not past due		$	470,662	$	548,124		$	410,837
Less than 30 days			78,580		79,154			26,807
Between 31 to 90 days			2,804		6,296			1,463
Between 91 to 180 days			4,728		1,992			-
		$	556,774	$	635,566		$	439,107

The above ageing analysis is based on past due date.

B. As of June 30, 2023, December 31, 2022, and June 30, 2022, accounts receivable arose from contracts with customers. As of January 1, 2022, the balance of receivables from contracts with customers amounted to $360,410.
C. As of June 30, 2023, December 31, 2021 and June 30, 2021, the Group does not hold any collateral as security.
D. As at June 30, 2023, December 31, 2022 and June 30, 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 Group’s notes and accounts receivable was the book value amount.
E. Information relating to credit risk of accounts receivable is provided in Note 12(2), “Financial instruments”.

(4) INVENTORIES

instruments”. INVENTORIES
Raw materials Supplies Work in process Finished goods		June 30,2023
	Allowance for Cost marketprice decline 429,138 $ 67,534) ($ 35,873 4,627) ( 499,105 85,954) ( 898,958 212,330) ( 1,863,074 $ 370,445) ($		Book value
			361,604 $ 31,246 413,151 686,628
			1,492,629 $

~16~

Raw materials Supplies Work in process Finished goods Raw materials Supplies Work in process Finished goods	Allowance for Cost market price decline 389,519 $ 67,384) ($ 33,860 4,259) ( 425,145 85,080) ( 718,615 221,700) ( 1,567,139 $ 378,423) ($ Allowance for Cost market price decline 316,637 $ 57,563) ($ 36,492 3,700) ( 469,456 101,566) ( 841,380 234,833) ( 1,663,965 $ 397,662) ($ June 30, 2022 December31,2022	Bookvalue 322,135 $ 29,601 340,065 496,915 1,188,716 $ Book value
		259,074 $ 32,792 367,890 606,547
		1,266,303 $

The cost of inventories recognised as expense for the period:

			For the three-monthperiods endedJune30,	For the three-monthperiods endedJune30,	For the three-monthperiods endedJune30,	For the three-monthperiods endedJune30,
			2023			2022
Cost of goods sold		$	336,108		$	311,348
Loss on scrap inventory			18,095			184
Loss on physical inventory			106			119
Under applied manufacturing overhead			119,360			131,603
(Reversal of allowance for) loss on inventory
market price decline (Note)	(		12,895)			8,425
Revenue from sale of scraps	(		497)	(		261)
		$	460,277		$	451,418
			For the six-monthperiods endedJune30,
			2023			2022
Cost of goods sold		$	603,002		$	651,566
Loss on scrap inventory			18,095			184
Loss (gain) on physical inventory			370	(		438)
Under applied manufacturing overhead			236,878			216,953
(Reversal of allowance for) loss on inventory
market price decline (Note)	(		5,596)			16,370
Revenue from sale of scraps	(		1,089)	(		718)
		$	851,660		$	883,917

Note: The Group reversed a previous inventory write-down which was accounted for as reduction of cost of goods sold because inventories which were provided with loss allowance in prior years were scrapped due to the termination of project for the three-month and six-month periods

~17~

ended June 30, 2023.

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

NON-CURRENT

==> picture [487 x 313] intentionally omitted <==

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

Items June 30, 2023 December 31, 2022 June 30, 2022
Equity instruments
Unlisted stocks $ 167,673 $ 167,673 $ 167,673
Valuation adjustment ( 87,039) ( 55,057) 47,467
$ 80,634 $ 112,616 $ 215,140
A. The Group 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 of June 30, 2023, December 31, 2022, and June 30, 2022.
B. Amounts recognised in other comprehensive income in relation to the financial assets at fair value
through other comprehensive income are listed below:
Equity instruments at fair value through other For the three-month periods ended June 30,
comprehensive income 2023 2022
Fair value change recognised in other
comprehensive income ($ 5,822) $ 37,919
Equity instruments at fair value through other For the six-month periods ended June 30,
comprehensive income 2023 2022
Fair value change recognised in other
comprehensive income ($ 31,982) $ 29,344
----- End of picture text -----

C. The Group has no financial assets at fair value through other comprehensive income pledged to others as of June 30, 2023, December 31, 2022, and June 30, 2022.

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(6) PROPERTY, PLANT AND EQUIPMENT

Machinery and
Transportation
Office
Other
January 1, 2023
Buildings
equipment
equipment
equipment
equipment
Cost
4,094,506
$ 5,846,575
$ 25,270
$ 220,531
$ 160,003
$ Accumulated depreciation
1,705,956)
(
4,603,390)
(
21,775)
(
190,718)
(
134,271)
(
Accumulated impairment
-
3,015)
(
-
-
-
2,388,550
$ 1,240,170
$ 3,495
$ 29,813
$ 25,732
$ For the six-month period ended
June 30, 2023
At January 1
2,388,550
$ 1,240,170
$ 3,495
$ 29,813
$ 25,732
$ Additions
-
-
-
19
881
Reclassified from prepayments
for equipment
-
-
-
-
-
Reclassified upon completion
928
38,711
2,395
8,275
1,068
Depreciation charge
89,752)
(
120,905)
(
574)
(
7,585)
(
756)
(
Disposals－Cost
249)
(
24,454)
(
-
3,034)
(
630)
(
' －Accumulated depreciation
249
24,339
-
2,847
604
Net currency exchange differences
25,643)
(
8,455)
(
104)
(
596)
(
669)
(
At June 30
2,274,083
$ 1,149,406
$ 5,212
$ 29,739
$ 26,230
$ June 30, 2023
Cost
4,058,630
$ 5,837,125
$ 27,401
$ 223,255
$ 155,958
$ Accumulated depreciation
1,784,547)
(
4,684,704)
(
22,189)
(
193,516)
(
129,728)
(
Accumulated impairment
-
3,015)
(
-
-
-
2,274,083
$ 1,149,406
$ 5,212
$ 29,739
$ 26,230
$

~19~

Machinery and
Transportation
Office
Other
January 1, 2022
Buildings
equipment
equipment
equipment
equipment
Cost
3,546,040
$ 5,254,948
$ 24,158
$ 217,113
$ 148,526
$ Accumulated depreciation
1,530,593)
(
4,407,344)
(
22,099)
(
182,866)
(
129,972)
(
Accumulated impairment
-
3,649)
(
-
-
-
2,015,447
$ 843,955
$ 2,059
$ 34,247
$ 18,554
$ For the six-month period ended
June 30, 2022
At January 1
2,015,447
$ 843,955
$ 2,059
$ 34,247
$ 18,554
$ Additions
-
1,371
-
34
-
Reclassified from prepayments
for equipment
-
-
-
-
-
Reclassified upon completion
488,715
587,883
1,107
7,382
8,610
Depreciation charge
78,475)
(
107,008)
(
306)
(
7,395)
(
1,617)
(
Disposals－Cost
-
10,271)
(
-
3,493)
(
-
' －Accumulated depreciation
-
9,725
-
3,335
-
Net currency exchange differences
14,169
5,372
35
215
320
At June 30
2,439,856
$ 1,331,027
$ 2,895
$ 34,325
$ 25,867
$ June 30, 2022
Cost
4,053,514
$ 5,845,943
$ 25,388
$ 222,224
$ 159,844
$ Accumulated depreciation
1,613,658)
(
4,511,267)
(
22,493)
(
187,899)
(
133,977)
(
Accumulated impairment
-
3,649)
(
-
-
-
2,439,856
$ 1,331,027
$ 2,895
$ 34,325
$ 25,867
$

~20~

A. The Group has not capitalised borrowing costs as part of property, plant and equipment for the three-month and six-month periods ended June 30, 2023 and 2022.
B. The Group’s property, plant and equipment were owner-occupied for the six-month periods ended June 30, 2023 and 2022.
C. As of June 30, 2023, December 31, 2022, and June 30, 2022, the Group has not pledged any property, plant and equipment as collateral.
－
(7) LEASING ARRANGEMENTS LESSEE
A. The Group leases land and buildings and structures. Rental contracts are typically made for periods of 50 (including the 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, with no restrictions other than the use of the subject matter of the lease in accordance with relevant laws and regulations.
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 Land Buildings and structures	June30,2023 Carrying amount 642,498 $ 1,679 644,177 $	December31,2022 June30,2022 Carrying amount Carrying amount 652,142 $ 659,162 $ 2,350 339 654,492 $ 659,501 $ For the three-monthperiods endedJune30,	June30,2022
			Carrying amount
			659,162 $ 339
			659,501 $
		2023 2023 Depreciationcharge Depreciationcharge 3,621 $ 3,629 $ 336 339 3,957 $ 3,968 $ Forthe six-monthperiods ended June 30,	2023
			Depreciationcharge
			3,629 $ 339
			3,968 $
		2023 Depreciationcharge 7,250 $ 671 7,921 $	2022
			Depreciationcharge
			7,255 $ 677
			7,932 $

D. For the three-month and six-month periods ended June 30, 2023 and 2022, there were no additions －－－
to right-of-use assets; the remeasurements of right-of-use assets were $ , $ , $ and $51,145, respectively.

~21~

E. The information on income and expense accounts relating to lease contracts is as follows:

	Forthe three-month	Forthe three-month	periods ended June 30,	periods ended June 30,
		2023		2022
Items affecting profit or loss
Interest expense on lease liabilities	$	1,684	$	1,705
Expense on short-term lease contracts		123		458
Expense on leases of low-value assets		776		452
		For the six-month periods ended June 30,
		2023		2022
Items affecting profit or loss
Interest expense on lease liabilities	$	3,376	$	3,418
Expense on short-term lease contracts		304		627
Expense on leases of low-value assets		1,608		964

F. For the six-month periods ended June 30, 2023 and 2022, the Group’s total cash outflow for leases were $10,915 and $10,593, respectively.

(8) SHORT-TERM BORROWINGS

Type ofborrowings Bank loans Unsecured loans Type of borrowings Bank loans Unsecured loans Type of borrowings Bank loans Unsecured loans	June 30,2023 79,869 $ December31,2022 77,599 $ June 30,2022 23,073 $	Interestrate 3.40%～3.51% Interest rate 3.40%～3.50% Interestrate 3.50%	Collateral
			None Collateral
			None Collateral
			None

Refer to Note 6(20), “ Finance costs” for interest expense recognised in profit or loss for the threemonth and six-month periods ended June 30, 2023 and 2022.

(9) OTHER PAYABLES

Accrued salaries and bonuses Accrued employees’ compensation and directors’ remuneration Payables on equipment Cash dividends payable Others	June 30,2023 83,411 $ 13,660 73,041 284,666 189,740 644,518 $	December31,2022 90,144 $ 49,453 53,975 - 219,782 413,354 $	June 30,2022
			77,357 $ 27,189 33,572 379,555 159,751
			677,424 $

~22~

(10) 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 and the average salary of the last six months prior to 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 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 method to the employees expected to qualify for retirement in the following year, the Company will make contribution for the deficit by end of March next year.
(a) The pension costs under the aforementioned defined benefit pension plan of the Company for the three-month and six-month periods ended June 30, 2023 and 2022 were $312, $204, $625 and $408, respectively.
(b) As of June 30, 2023, the Company’s expected contributions to the pension plan for the year 2023 amounted to $2,857.
B. As a result of the enforcement of the Act, the Company set up a defined contribution pension plan which took effect on July 1, 2005. The local employees are eligible for the defined contribution plan. For employees who choose to be covered under the pension scheme of the Act, the Company contributes monthly an amount of not less than 6% of the employees’ monthly salaries and wages to the employees’ individual pension accounts at the Bureau of Labor Insurance. Pensions are paid by monthly installments or in lump sum based on the accumulated balances of the employees’ individual pension accounts. The subsidiaries in Mainland China (SciAnda (Changshu) Pharmaceuticals, Ltd., and SciAnda Shanghai Biochemical Technology, Ltd.) are subject to a government sponsored defined contribution plan. In accordance with the related Laws of the People’s Republic of China, the subsidiaries in Mainland China contribute monthly 18% of the employees’ monthly salaries and wages to an independent fund administered by the

~23~

government. Other than the monthly contributions, these subsidiaries do not have further obligations. The other subsidiaries, SPT International, Ltd. and ScinoPharm Singapore Pte Ltd., had no employees. For the three-month and six-month periods ended June 30, 2023 and 2022, the pension costs recognised under the aforementioned defined contribution pension plans were $9,900, $9,170, $19,467 and $18,437, respectively.

(11) SHARE CAPITAL

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

At January 1 and June 30	2023 2022 790,739 790,739 For the six-monthperiods endedJune30,

B. As of June 30, 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.

(12) CAPITAL RESERVES

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

At January 1 and June 30 At January 1 and June 30	For the six-month period ended June 30, 2023	For the six-month period ended June 30, 2023
	Sharepremium Stock options Total 1,256,454 $ 38,235 $ 1,294,689 $ For the six-month period ended June 30, 2022
	Sharepremium 1,254,273 $	Stock options Total 40,416 $ 1,294,689 $

(13) 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 price of the options was set at $91.70 (in dollars), $41.65 (in dollars) and $40.55 (in dollars), respectively, which was based on the closing market price of the Company's common shares on the Grant Dates. 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

~24~

common stocks caused by capital reduction not due to the retirement of treasury share after the Grant Date. (As of June 30, 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 arrangements are as follows:

		Forthe six-monthperiod ended June 30,2023	Forthe six-monthperiod ended June 30,2023	Forthe six-monthperiod ended June 30,2023
				Weighted-average
		Number of options		exercise price
		(in thousand units)		(in dollars)
Options outstanding at beginning and end
of the period		1,526	$	43.50
Options exercisable at end of the period		1,526		43.50
		Forthe six-monthperiod ended June 30,2022
				Weighted-average
		Number of options		exercise price
		(inthousand units)		(in dollars)
Options outstanding at beginning of the period		1,660	$	44.39
Options forfeited	(	134)		44.88
Options outstanding at end of the period		1,526		44.35

Options exercisable at end of the period		1,526		44.35

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

Grant date 12.3.2013 11.6.2015 10.14.2016 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 $ 319 71.60 $ 11.5.2025 539 35.80 539 35.80 10.13.2026 668 36.30 668 36.30 No. of stocks Exercise price Expiry date (unitinthousands) (indollars) 12.2.2023 319 73.00 $ 11.5.2025 539 36.50 10.13.2026 668 37.00 June 30,2023 December31,2022 June30,2022

D. The fair value of the Group’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:

~25~

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

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

(14) RETAINED EARNINGS

A. Pursuant to the amended Articles of Incorporation, 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 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. 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 from the debit balance on other equity items at the balance sheet date before distributing earnings. When debit balance on other equity items is reversed subsequently, the reversed amount could be included in the distributable earnings. The amounts previously set aside by the Company as special reserve on initial application of IFRSs in accordance with Order No. Jin-Guan-Zheng-Fa-Zi Letter No. 1010012865, dated April 6, 2012, shall be reversed proportionately when the relevant assets are used, disposed of or reclassified subsequently. As of June 30, 2023, the amount of special reserve

~26~

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 $379,555 ($0.48 (in dollars) per share) for the year ended December 31, 2022. On May 29, 2023, the Company’s stockholders approved the distribution of cash dividends of $284,666 ($0.36 (in dollars) per share) from 2022 earnings.

(15) OTHER EQUITY ITEMS

from 2022 earnings. OTHER EQUITY ITEMS
			For the six-monthperiod endedJune30,					2023
						Unrealised loss
		Currencytranslation				onvaluation		Total
At January 1	($		43,119)	($		55,057)	($	98,176)
Revaluation			-	(		31,982)	(	31,982)
Currency translation differences
- Group	(		55,719)			-	(	55,719)
At June 30	($		98,838)	($		87,039)	($	185,877)
			For the six-monthperiod endedJune30,					2022
				Unrealised gain (loss)
		Currencytranslation				onvaluation		Total
At January 1	($		79,248)		$	18,123	($	61,125)
Revaluation			-			29,344		29,344
Currency translation differences
- Group			30,828			-		30,828
At June 30	($		48,420)		$	47,467	($	953)

(16) OPERATING REVENUE

A. Disaggregation of revenue from contracts with customers

The Group 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 three-month period endedJune30,2023 Timing of revenue recognition: At a point in time Over time	API Income 714,889 $ - 714,889 $	Injection Product Income - $ - - $	Technical Service Income - $ 31,908 31,908 $	Other Operating Income - $ 8,104 8,104 $	Total
					714,889 $ 40,012
					754,901 $

~27~

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

Injection Technical Other
For the three-month period API Product Service Operating
ended June 30, 2022 Income Income Income Income Total
Timing of revenue
recognition:
- - -
At a point in time $ 733,036 $ $ $ $ 733,036
Over time - - 18,586 53,916 72,502
$ 733,036 $ - $ 18,586 $ 53,916 $ 805,538
Injection Technical Other
For the six-month period API Product Service Operating
ended June 30, 2023 Income Income Income Income Total
Timing of revenue
recognition:
- - -
At a point in time $ 1,322,056 $ $ $ $ 1,322,056
Over time - - 71,315 9,960 81,275
$1,322,056 $ - $ 71,315 $ 9,960 $1,403,331
Injection Technical Other
For the six-month period API Product Service Operating
ended June 30, 2022 Income Income Income Income Total
Timing of revenue
recognition:
- -
At a point in time $ 1,393,868 $ 11,880 $ $ $ 1,405,748
Over time - - 42,210 95,519 137,729
$ 1,393,868 $ 11,880 $ 42,210 $ 95,519 $ 1,543,477
----- End of picture text -----

B. The Group has recognised contract liabilities related to the contract revenue from advance customer payment of $137,002, $67,752, $91,598 and $70,565 as of June 30, 2023, December 31, 2022, June 30, 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 $4,448, $12,844, $12,210 and $36,068 for the three-month and six-month periods ended June 30, 2023 and 2022, respectively.

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(17) INTEREST INCOME

Interest income from bank deposits

Interest income from bank deposits Interest income from financial assets measured at amortised cost

(18) OTHER INCOME

Production capacity subsidy income Income from counterparty default Others

==> picture [234 x 384] intentionally omitted <==

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

For the three-month periods ended June 30,
2023 2022
$ 13,779 $ 3,878
For the six-month periods ended June 30,
2023 2022
$ 26,619 $ 7,371
- 265
$ 26,619 $ 7,636
For the three-month periods ended June 30,
2023 2022
$ 2,040 $ 2,567
-
1,970
1,842 750
$ 5,852 $ 3,317
For the six-month periods ended June 30,
2023 2022
$ 4,115 $ 4,526
-
1,970
2,442 1,863
$ 8,527 $ 6,389
----- End of picture text -----

(19) OTHER GAINS AND LOSSES

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

		Forthe three-month	periods	ended June 30,
		2023		2022
	$	11,196	$	17,181
(		7,785)	(	14,822)
(		269)	(	425)
(		833)	(	791)
	$	2,309	$	1,143

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

==> picture [242 x 140] intentionally omitted <==

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

For the six-month periods ended June 30,
2023 2022
$ 3,131 $ 33,070
( 7,702) ( 27,622)
( 328) ( 704)
( 2,031) ( 507)
($ 6,930) $ 4,237
----- End of picture text -----

(20) FINANCE COSTS

FINANCE COSTS
Interest expense: Bank loans Interest on lease liabilities Interest expense: Bank loans Interest on lease liabilities	For the three-month periods ended June 30,
	2023 2022 711 $ 214 $ 1,684 1,705 2,395 $ 1,919 $ For the six-month periods ended June 30,	2022 214 $ 1,705
		1,919 $
	2023 1,435 $ 3,376 4,811 $	2022
		293 $ 3,418
		3,711 $

(21) EXPENSES BY NATURE

EXPENSES BY NATURE
Employee benefit expenses Depreciation of property, plant and equipment Depreciation of right-of-use assets Amortisation Employee benefit expenses Depreciation of property, plant and equipment Depreciation of right-of-use assets Amortisation	Forthe three-monthperiod ended June 30,2023
	Operating costs Operating expenses Total 157,228 $ 82,814 $ 240,042 $ 92,139 16,980 109,119 - 3,957 3,957 597 893 1,490 249,964 $ 104,644 $ 354,608 $ Forthe three-monthperiod ended June 30,2022		Total
			240,042 $ 109,119 3,957 1,490
			354,608 $
	Operatingcosts 135,098 $ 83,640 - 624 219,362 $	Operatingexpenses 84,238 $ 21,277 3,968 806 110,289 $	Total
			219,336 $ 104,917 3,968 1,430
			329,651 $

~30~

Operating costs Operating expenses Total 301,525 $ 159,102 $ 460,627 $ 185,900 33,672 219,572 - 7,921 7,921 1,283 1,688 2,971 488,708 $ 202,383 $ 691,091 $ Operating costs Operating expenses Total 253,546 $ 180,064 $ 433,610 $ 145,593 49,208 194,801 - 7,932 7,932 1,174 1,490 2,664 400,313 $ 238,694 $ 639,007 $ Forthe six-monthperiod ended June 30,2023 Forthe six-monthperiod ended June 30,2022 Forthe three-monthperiod ended June 30,2023	Operating costs Operating expenses Total 301,525 $ 159,102 $ 460,627 $ 185,900 33,672 219,572 - 7,921 7,921 1,283 1,688 2,971 488,708 $ 202,383 $ 691,091 $ Operating costs Operating expenses Total 253,546 $ 180,064 $ 433,610 $ 145,593 49,208 194,801 - 7,932 7,932 1,174 1,490 2,664 400,313 $ 238,694 $ 639,007 $ Forthe six-monthperiod ended June 30,2023 Forthe six-monthperiod ended June 30,2022 Forthe three-monthperiod ended June 30,2023	Operating costs Operating expenses Total 301,525 $ 159,102 $ 460,627 $ 185,900 33,672 219,572 - 7,921 7,921 1,283 1,688 2,971 488,708 $ 202,383 $ 691,091 $ Operating costs Operating expenses Total 253,546 $ 180,064 $ 433,610 $ 145,593 49,208 194,801 - 7,932 7,932 1,174 1,490 2,664 400,313 $ 238,694 $ 639,007 $ Forthe six-monthperiod ended June 30,2023 Forthe six-monthperiod ended June 30,2022 Forthe three-monthperiod ended June 30,2023
Operating costs Operating expenses Total 132,759 $ 70,544 $ 203,303 $ 11,517 5,126 16,643 7,226 2,986 10,212 5,726 4,158 9,884 157,228 $ 82,814 $ 240,042 $ Forthe three-monthperiod ended June 30,2022		Total
		203,303 $ 16,643 10,212 9,884
		240,042 $
Operating costs Operating expenses Total 114,365 $ 71,846 $ 186,211 $ 9,565 5,413 14,978 6,339 3,035 9,374 4,829 3,944 8,773 135,098 $ 84,238 $ 219,336 $ Forthe six-monthperiod ended June 30,2023		Total
		186,211 $ 14,978 9,374 8,773
		219,336 $
Operatingcosts 254,107 $ 22,233 14,125 11,060 301,525 $	Operatingexpenses 134,554 $ 10,211 5,967 8,370 159,102 $	Total
		388,661 $ 32,444 20,092 19,430
		460,627 $

(22) EMPLOYEE BENEFIT EXPENSES

~31~

Salaries and wages Labor and health insurance expenses Pension costs Other personnel expenses	Operating costs Operating expenses Total 213,630 $ 153,179 $ 366,809 $ 18,421 11,891 30,312 12,230 6,615 18,845 9,265 8,379 17,644 253,546 $ 180,064 $ 433,610 $ Forthe six-monthperiod ended June 30,2022

A. 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.
B. For the three-month and six-month periods ended June 30, 2023 and 2022, the employees’ compensation was accrued at $6,610, $14,094, $11,879 and $23,750, respectively, while the directors’ remuneration was accrued at $1,025, $2,049, $1,781 and $3,439, 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 amount estimated in the 2022 financial statements. The employees’ compensation was distributed in the form of cash for 2022.

Information about the appropriation of employees’ compensation and directors’ remuneration by 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.

(23) INCOME TAX

A. Income tax expense

Components of income tax expense:

COME TAX Income tax expense Components of income tax expense:
			Forthe three-monthperiods		ended June 30,
			2023		2022
Current income tax:
Income tax for the period		$	9,395	$	39,899
Over provision of prior year's
income tax	(		4,694)	(	3,519)
Total current tax			4,701		36,380
Deferred income tax:
Origination and reversal of temporary
differences			4,470	(	9,271)
Income tax expense		$	9,171	$	27,109

~32~

			Forthe six-monthperiods	Forthe six-monthperiods	Forthe six-monthperiods	ended June 30,
			2023			2022
Current income tax:
Income tax for the period		$	24,604		$	67,250
Over provision of prior year's
income tax	(		4,694)	(		3,519)
Total current tax			19,910			63,731
Deferred income tax:
Origination and reversal of temporary
differences	(		51)	(		17,306)
Income tax expense		$	19,859		$	46,425

B. 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 August 7, 2023.

(24) EARNINGS PER SHARE (“EPS”)

August 7, 2023. EARNINGS PER SHARE (“EPS”)
Basic earnings per share Profit attributable to ordinary stockholders of the parent Diluted earnings per share Profit attributable to ordinary stockholders of the parent Assumed conversion of all dilutive potential ordinary shares Employees’ stock options Employees’ compensation Profit attributable to ordinary stockholders of the parent plus assumed conversion of all dilutive potential ordinary shares	For the three-monthperiod endedJune30,2023
	Amount after tax 56,948 $ 56,948 $ - - 56,948 $	Weighted average number of shares outstanding (shares in thousands) 790,739 790,739 - 396 791,135	EPS (in dollars)
			0.07 $
			0.07 $

~33~

Weighted average number of shares outstanding EPS Amount after tax (shares in thousands) (in dollars) 113,835 $ 790,739 0.14 $ 113,835 $ 790,739 - - - 930 113,835 $ 791,669 0.14 $ For the three-monthperiod endedJune30,2022 For the six-monthperiod endedJune30,2023	Weighted average number of shares outstanding EPS Amount after tax (shares in thousands) (in dollars) 113,835 $ 790,739 0.14 $ 113,835 $ 790,739 - - - 930 113,835 $ 791,669 0.14 $ For the three-monthperiod endedJune30,2022 For the six-monthperiod endedJune30,2023	Weighted average number of shares outstanding EPS Amount after tax (shares in thousands) (in dollars) 113,835 $ 790,739 0.14 $ 113,835 $ 790,739 - - - 930 113,835 $ 791,669 0.14 $ For the three-monthperiod endedJune30,2022 For the six-monthperiod endedJune30,2023
		0.14 $
		0.14 $
		2023
Amount after tax 98,959 $ 98,959 $ - - 98,959 $	Weighted average number of shares outstanding (shares in thousands) 790,739 790,739 - 905 791,644	EPS (in dollars)
		0.13 $
		0.13 $

~34~

Basic earnings per share Profit attributable to ordinary stockholders of the parent Diluted earnings per share Profit attributable to ordinary stockholders of the parent Assumed conversion of all dilutive potential ordinary shares Employees’ stock options Employees’ compensation Profit attributable to ordinary stockholders of the parent plus assumed conversion of all dilutive potential ordinary shares	Weighted average number of shares outstanding Amount after tax (shares in thousands) 191,081 $ 790,739 191,081 $ 790,739 - - - 1,326 191,081 $ 792,065 For the six-monthperiod endedJune30,	EPS (in dollars) 2022
		0.24 $
		0.24 $

For the three-month and six-month periods ended June 30, 2023 and 2022, some abovementioned stock options issued were anti-dilutive; therefore they were not included in the diluted EPS calculation.

(25) SUPPLEMENTAL CASH FLOW INFORMATION

A. Investing activities with partial cash payments:

Investing activities with partial cash payments:
		Forthe six-monthperiods ended June 30,
		2023		2022
Purchase of property, plant and equipment	$	35,536	$		39,921
Add: Beginning balance of payable
on equipment (listed as “Other payables”)		53,975			30,132
Less: Ending balance of payable
on equipment (listed as “Other payables”)	(	73,041)	(		33,572)
Cash paid for acquisition of property, plant
and equipment	$	16,470	$		36,481
Investing and financing activities with no cash flow		effects:
		Forthe six-monthperiods ended June			30,
		2023		2022
(a) Prepayments for equipment reclassified to
property, plant and equipment	$	51,377	$	102,942
(b) Cash dividends distribution	$	284,666	$	379,555

B. Investing and financing activities with no cash flow effects:

~35~

(26) CHANGES IN LIABILITIES FROM FINANCING ACTIVITIES

									Guarantee		Liabilities from	Liabilities from
			Short-term			Lease			deposits			financing
			borrowings			liabilities			received		activities-gross
At January 1, 2023		$	77,599		$	599,074		$	2,357		$	679,030
Changes in cash flow from
financing activities			5,169	(		5,627)	(		1,422)	(		1,880)
Impact of changes in
foreign exchange rate	(		2,899)			-	(		33)	(		2,932)
At June 30, 2023		$	79,869		$	593,447		$	902		$	674,218
									Guarantee		Liabilities from
			Short-term			Lease			deposits			financing
			borrowings			liabilities			received		activities-gross
At January 1, 2022		$	-		$	556,431		$	3,648		$	560,079
Changes in cash flow from
financing activities			23,064	(		5,584)	(		1,746)			15,734
Impact of changes in
foreign exchange rate			9			-			8			17
Changes in other
non-cash items			-			51,145			-			51,145
At June 30, 2022		$	23,073		$	601,992		$	1,910		$	626,975

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

Uni-President Enterprises Corp. President Securities Corp. President Transnet Corp. President Tokyo Corp. Mech-President Co., Ltd. President Chain Store Corp. President Chain Store Tokyo Marketing Corp. President Information Corp. Duskin Serve Taiwan Co., Ltd. Uni-President Enterprises (China) Investment Corp. Uni-President Shanghai Pearly Century Co., Ltd.

Relationship with the Company

Ultimate parent company

Associate of ultimate parent company Associate of ultimate parent company Associate of ultimate parent company Associate of ultimate parent company Associate of ultimate parent company Associate of ultimate parent company Associate of ultimate parent company Associate of ultimate parent company Associate of ultimate parent company Associate of ultimate parent company

~36~

(3) Significant transactions and balances with related parties

Other expenses

Management service fees: `－`Ultimate parent company `－`Associate of ultimate parent company Management service fees: `－`Ultimate parent company `－`Associate of ultimate parent company	2023 2022 - $ 1,542 $ 606 1,253 606 $ 2,795 $ 2023 2022 167 $ 1,679 $ 1,712 2,043 1,879 $ 3,722 $ Forthe three-monthperiods ended June 30, For the six-month periods ended June 30,

(4) Key management compensation

				Forthe three-monthperiods ended June 30,	Forthe three-monthperiods ended June 30,	Forthe three-monthperiods ended June 30,	Forthe three-monthperiods ended June 30,	Forthe three-monthperiods ended June 30,
					2023			2022
Salaries and other short-term employee
benefits				$		12,330	$	13,007
Post-employment benefits						161		154
Termination benefits						377		367
				$		12,868	$	13,528
				For the six-monthperiods endedJune30,
					2023			2022
Salaries and other short-term employee
benefits				$		23,932	$	26,166
Post-employment benefits						320		326
Termination benefits						745		735
				$		24,997	$	27,227
PLEDGED ASSETS
Details of the Group’s assets pledged as collateral are as follows:
Assets		June 30,2023	December31,2022		June	30,2022		Purpose ofcollateral
Restricted deposits (Note 1)	$	-	$	51,132	$	50,634		Construction payment
								dispute (Note 1)
Pledged time deposits (Note 2)								Performance guarantee,
								customs duty and
		30,940		30,940		29,270		guarantee for credit card
	$	30,940	$	82,072	$	79,904

8. PLEDGED ASSETS

Note 1: Listed as “Other financial assets - current”; refer to Note 9, “Significant contingent liabilities

~37~

and unrecognised contract commitments”.

Note 2: Listed as “Other financial assets - non-current”.

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED CONTRACT

COMMITMENTS

(1) As of June 30, 2023, December 31, 2022, and June 30, 2022, the Group’s unused letters of credit －－
amounted to $ , $8,785 and $ , respectively.
(2) As of June 30, 2023, December 31, 2022, and June 30, 2022, the Group’s remaining balance due for construction in progress and prepayments for equipment was $37,570, $50,736 and $74,530, respectively.
(3) The amounts of endorsements and guarantees for subsidiaries were as follows:

Nature June 30, 2023 December 31, 2022 June 30, 2022 SciAnda (Changshu) Guarantee for Pharmaceuticals, Ltd. financing amount $ 300,509 $ 445,163 $ 443,628 As of June 30, 2023, December 31, 2022, and June 30, 2022, the actual amount drawn down for endorsements and guarantees to subsidiaries was $ － .

(4) In December 2020, SciAnda (Changshu) Pharmaceuticals, Ltd., a subsidiary of the Group, has been drawn into a construction payment dispute with Jiangsu Qian Construction Group Co., Ltd. The latter has filed for a provisional attachment of part of the Group’s bank deposits with the district court. Jiangsu Suzhou Intermediate People’s Court had denied the claim of Jiangsu Qian Construction Group Co., Ltd. at the final instance on June 5, 2023. The bank deposits that were attached provisionally had been unfrozen on June 16, 2023. As of June 30, 2023, December 31, 2022, and －－
June 30, 2022, bank deposits totaling $ , $51,132 and $50,634 (CNY thousand, CNY 11,486 thousand and CNY 11,414 thousand) have been frozen, respectively, and listed as “Other financial assets - current”.

10. SIGNIFICANT DISASTER LOSS: None.

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE: None.

12. OTHERS

(1) Capital management

The Group’s objectives on managing capital are to safeguard the Group’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 Group 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 Group’s financial instruments by category, refer to Note 6.

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B. Risk management policies

(a) The Group’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 Group’s treasury identifies, evaluates and hedges financial risks closely with the Group’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), “Financial assets and liabilities at fair value through profit or loss”.
C. Significant financial risks and degrees of financial risks
(a) Market risk
I. Foreign exchange rate risk
- (i) The Group operates internationally and is exposed to foreign exchange risk arising from the transactions of the Company and its subsidiaries used in various functional currency, primarily with respect to USD. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities.
- (ii) To manage their foreign exchange risk arising from future commercial transactions and recognised assets and liabilities, entities in the Group are required to hedge their foreign exchange risk exposure using forward foreign exchange contracts. However, the Group does not adopt hedging accounting. Details of financial assets or liabilities at fair value through profit or loss are provided in Note 6(2), “Financial assets and liabilities at fair value through profit or loss”.
- (iii)The Group’s businesses involve some non-functional currency operations (the Company’s and certain subsidiaries’ functional currency: NTD; other subsidiaries’ functional currency: CNY). The information on assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations is as follows:

~39~

June30,2023	June30,2023
Foreign currency amount(in thousands) Exchange rate 18,267 $ 31.14 992 31.14 13,267 0.215 80 33.81 48 33.28 December31,2022		Book value (NTD)
		568,834 $ 30,891 2,852 2,705 1,597
Foreign currency amount(in thousands) Exchange rate 20,643 $ 30.71 81 32.72 852 30.71 130 32.72 48 33.21 June30,2022		Book value (NTD)
		633,947 $ 2,650 26,165 4,254 1,594
Foreign currency amount(in thousands) 15,955 $ 994	Exchange rate 29.72 29.72	Book value (NTD)
		474,183 $ 29,542

~40~

(iv) As of June 30, 2023 and 2022, if the NTD:USD exchange rate appreciates/depreciates by 5% with all other factors remaining constant, the Group’s net profit after tax for the six-month periods ended June 30, 2023 and 2022 would increase/decrease by $21,518 and $17,786, 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 Group’s net profit after tax for the six-month periods ended June 30, 2023 and 2022 is immaterial.
(v)Total exchange gain including realised and unrealised arising from significant foreign exchange variation on the monetary items held by the Group for the three-month and six-month periods ended June 30, 2023 and 2022 amounted to $11,196, $17,181, $3,131 and $33,070, respectively.
II. Price risk

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

III. Cash flow and fair value interest rate risk
(i) The Group’s main interest rate risk arises from short-term borrowings with variable rates and exposes the Group to cash flow interest rate risk. During the six-month periods ended June 30, 2023 and 2022, the Group’s borrowings at variable rate were denominated in CNY and USD.
(ii) The Group’s borrowings are measured at amortised cost. The borrowings are periodically contractually repriced and to that extent are also exposed to the risk of future changes in market interest rates.
(iii) If the borrowing interest rates had increased/decreased by 10% with all other variables held constant, the effect on post-tax profit for the six-month periods ended June 30, 2023 and 2022 is immaterial.

(b) Credit risk

I. Credit risk refers to the risk of financial loss to the Group arising from default by the clients or counterparties of financial instruments on the contract obligations. The main factor is that counterparties could not repay in full the accounts receivable based on the agreed terms.
II. The Group manages its credit risk taking into consideration the entire group’s concern. For banks and financial institutions, only independently rated parties with a minimum rating of 'A' are accepted. According to the Group’s credit policy, each local entity in the Group is responsible for managing and analysing the credit risk for each of their new clients before standard payment and delivery terms and conditions are offered. Internal risk control assesses the credit quality of the customers, taking into account their financial position,

~41~

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 Group 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 Group 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 Group classifies customers’ accounts receivable in accordance with the credit rating of the customer and credit risk on trade. The Group 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 Group applying the simplified approach to provide loss allowance for accounts receivable are as follows:

			For the six-month periods	For the six-month periods	For the six-month periods	ended June 30,
			2023			2022
At January 1		$	303		$	163
Expected credit loss (gain)			269	(		140)
Impact of foreign exchange rate	(		15)			2
At June 30		$	557		$	25

(c) Liquidity risk

I. Cash flow forecasting is performed by the Group’s treasury department which monitors rolling forecasts of the Group’s liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times so that the Group does not breach borrowing limits or covenants (where applicable) on any of its borrowing facilities.
II. The Group has undrawn borrowing facilities amounting to $4,981,617, $4,600,296 and $5,173,703 as of June 30, 2023, December 31, 2022, and June 30, 2022, respectively.
III. The following table comprises the Group’s non-derivative financial liabilities and derivative financial liabilities with gross-amount settlement that are grouped by their maturity. Nonderivative 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.

~42~

June30,2023 Short-term borrowings Notes payable Accounts payable Other payables Lease liabilities Guarantee deposits received Derivative financial liabilities: Forward exchange contracts December31,2022 Short-term borrowings Notes payable Accounts payable Other payables Lease liabilities Guarantee deposits received Derivative financial liabilities: Forward exchange contracts June 30,2022 Short-term borrowings Notes payable Accounts payable Other payables Lease liabilities Guarantee deposits received Derivative financial liabilities: Forward exchange contracts Non-derivative financial liabilities: Non-derivative financial liabilities: Non-derivative financial liabilities:	Less than 1year 81,109 $ 2,049 173,563 644,518 18,006 - 2,408 Less than 1year 77,851 $ 1,235 125,264 413,354 18,006 - 361 Less than 1year 23,553 $ 1,982 115,879 677,424 16,982 - 268	Between 1 and 2years - $ - - - 16,982 902 - Between 1 and2years - $ - - - 17,664 2,357 - Between 1 and2years - $ - - - 16,640 1,910 -	Between 2 and5 years - $ - - - 49,921 - - Between 2 and 5 years - $ - - - 49,921 - - Between 2 and 5 years - $ - - - 49,921 - -	More than 5 years
				- $ - - - 673,934 - - More than 5 years
				- $ - - - 682,254 - - More than 5 years
				- $ - - - 690,574 - -

(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

~43~

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 Group’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 Group’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, other financial assets - current, guarantee deposits paid, other financial assets - non-current, short-term borrowings, notes payable, accounts payable, other payables and guarantee deposits received are approximate to their fair values.
C. The related information on financial instruments measured at fair value by level on the basis of the nature, characteristics and risks of the assets and liabilities are as follows:

June 30,2023 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 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 - $ 2,408 $ Level 2 - $ 361 $	Level3 80,634 $ - $ Level3 112,616 $ - $	Total
				80,634 $
				2,408 $
				Total
				112,616 $
				361 $

~44~

June 30,2022 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 2 - $ 268 $	Level3 215,140 $ - $	Total 215,140 $
				268 $

D. The methods and assumptions the Group used to measure fair value are as follows:
(a) The fair value of other financial instruments is measured by using valuation techniques or by reference to counterparty quotes. The fair value of financial instruments measured by using valuation techniques 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 Group 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 six-month periods ended June 30, 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 six-month periods ended June 30, 2023 and 2022:

and 2022:
			Forthe six-monthperiods ended June 30,
			2023		2022
			Equityinstrument		Equityinstrument
At January 1		$	112,616	$	185,796
Loss recognised in other
comprehensive (loss) income	(		31,982)		29,344
At June 30		$	80,634	$	215,140

G. For the six-month periods ended June 30, 2023 and 2022, there was no transfer in (out) Level 3.
H. The Group’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

~45~

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.

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:

Valuation technique	Significant unobservable input	Range (weighted average)	Relationship of inputs to fairvalue
Net asset value Valuation technique	Discount for lack of marketability Significant unobservable input	50% Range (weighted average)	The higher the discount for lack of marketability, the lower the fair value Relationship of inputs to fairvalue
Net asset value Valuation technique	Discount for lack of marketability Significant unobservable input	50% Range (weighted average)	The higher the discount for lack of marketability, the lower the fair value Relationship of inputs to fairvalue
Net asset value	Discount for lack of marketability	50%	The higher the discount for lack of marketability, the lower the fair value

J. The Group has carefully assessed the valuation models and assumptions used to measure fair

~46~

value. However, use of different valuation models or assumptions may result in different measurement. If the discount for lack of marketability increased or decreased by 1% for Level 3, the effect on other comprehensive income for the six-month periods ended June 30, 2023 and 2022 is immaterial.

13. SUPPLEMENTARY DISCLOSURES

According to the current regulatory requirements, the Group is only required to disclose the information for the six-month period ended June 30, 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.
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 and liabilities 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. Basic 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 table 4.

(4) Major shareholders information

Major shareholders information: Refer to table 7.

14. SEGMENT INFORMATION

(1) General information

The management of the Group has identified the operating segments based on how the Company’s Chief Operating Decision-Maker regularly reviews information in order to make decisions. The Chief Operating Decision-Maker manages the Group’s business from geographical and functional perspectives. Geographically, the Group focuses on its sales business in the U.S., Europe and Asia. In addition, the Group categorized its business units into manufacture, sales, research and

~47~

development and investment management functions, and combines its segments that meet the disclosure threshold as “Others”.

(2) Segment information

The segment information provided to the Chief Operating Decision-Maker for the reportable segments is as follows:

segments is as follows:
Segment revenue Revenue from internal customers Revenue from external customers `－`API Income `－`Technical Service Income `－`Other Operating Income Interest income Depreciation and amortisation Interest expense Income (loss) from segment before income tax Segment assets Other acquisition of non-current assets Segment liabilities Segment revenue Revenue from internal customers Revenue from external customers `－`API Income －Injection Product Income `－`Technical Service Income `－`Other Operating Income Interest income Depreciation and amortisation Interest expense Income (loss) from segment before income tax Segment assets Other acquisition of non-current assets Segment liabilities	For the six-monthperiod endedJune30,2023
	ScinoPharm SciAnda (Changshu) Taiwan,Ltd. PharmaceuticalsLtd. Others Total 1,326,580 $ 261,293 $ 24,637 $ 1,612,510 $ 19,461 183,910 5,808 209,179 1,307,119 77,383 18,829 1,403,331 1,234,383 68,974 18,699 1,322,056 62,776 8,409 130 71,315 9,960 - - 9,960 26,313 202 104 26,619 181,083 48,769 612 230,464 3,376 1,435 - 4,811 149,106 16,052) ( 605 133,659 10,294,425 1,729,473 25,188 12,049,086 100,864 57,869 276 159,009 1,541,224 244,249 3,461 1,788,934 For the six-monthperiod endedJune30,2022		Total
	ScinoPharm SciAnda (Changshu) Taiwan,Ltd. PharmaceuticalsLtd. 1,481,805 $ 161,351 $ 10,136 97,659 1,471,669 63,692 1,329,590 56,222 11,880 - 34,680 7,470 95,519 - 7,063 484 152,118 52,856 3,418 293 305,448 95,120) ( 10,363,069 1,701,354 59,321 73,828 1,523,036 132,000	Others 14,430 $ 6,314 8,116 8,056 - 60 - 89 423 - 440 29,133 167 8,169	Total
			1,657,586 $ 114,109 1,543,477 1,393,868 11,880 42,210 95,519 7,636 205,397 3,711 210,768 12,093,556 133,316 1,663,205

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(3) Reconciliation for segment

A. The sales between segments were at arms’ length. The external revenues reported to the Chief Operating Decision-Maker adopt the same measurement basis for revenues in the statement of comprehensive income. The reconciliations of pre-tax income between reportable segments and continuing operations were as follows :

			Forthe six-monthperiods	Forthe six-monthperiods	ended June 30,
			2023		2022
Reportable segments profit before
income tax		$	133,054	$	210,328
Other segments income before income
tax			605		440
Internal segments transaction elimination	(		14,841)		26,738
Profit before income tax		$	118,818	$	237,506

B. The amount of total assets provided to the Chief Operating Decision-Maker adopts the same measurement for assets in the Group's financial statements. A reconciliation of assets of reportable segments and total assets is as follows:

			June30,2023			June30,2022
Assets of reportable segments		$	12,023,898		$	12,064,423
Assets of other operating segments			25,188			29,133
Internal segment transaction elimination	(		159,581)	(		58,016)
Total assets		$	11,889,505		$	12,035,540

C. The amount of total liabilities provided to the Chief Operating Decision-Maker adopts the same measurement for liabilities in the Group's financial statements. A reconciliation of liabilities of reportable segments and total liabilities is as follows:

			June30,2023			June30,2022
Liabilities of reportable segments		$	1,785,473		$	1,655,036
Liabilities of other operating segments			3,461			8,169
Internal segment transaction elimination	(		76,074)	(		10,417)
Total liabilities		$	1,712,860		$	1,652,788

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ScinoPharm Taiwan, Ltd. and Subsidiaries

Table 1

Expressed in thousands of NTD

Provision of endorsements and guarantees to others

For the six-month period ended June 30 , 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 theperiod	Outstanding endorsement/ guarantee amount at June 30, 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	10,176,645 $	747,102 $	300,509 $	- $	- $	2.95%	10,176,645 $	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 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.

2.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 consolidated financial statements (CNY:NTD 1:4.293 ； USD:NTD 1:31.14).

Table 1, Page 1

ScinoPharm Taiwan, Ltd. and Subsidiaries

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

June 30 , 2023

Table 2

Expressed in thousands of NTD

Securities held by	Marketable securities	Relationship with the securities issuer	General ledger account		As ofJune30,2023	As ofJune30,2023		Footnote
				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	80,634 $ -	16.84% 7.40%	80,634 $ -	`－` `－`

Table 2, Page 1

Table 3

Expressed in thousands of NTD

ScinoPharm Taiwan, Ltd. and Subsidiaries

Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid in capital or more For the six-month period ended June 30, 2023

Purchaser/seller	Counterparty	Relationship with the counterparty			Transaction		Differences in transaction terms compared to third party transactions	Differences in transaction terms compared to third party transactions	Notes/accounts receivable(payable)	Notes/accounts receivable(payable)	Footnote
			Purchases(sales)	Amount	Percentage of total purchases(sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable(payable)
ScinoPharm Taiwan, Ltd. SciAnda (Changshu) Pharmaceuticals, Ltd.	SciAnda (Changshu) Pharmaceuticals, Ltd. ScinoPharm Taiwan, Ltd.	Subsidary The Company	Purchases (Sales)	181,957 $ 181,957) (	31% (73%)	Closes its accounts 90 days from the end of each month Closes its accounts 90 days from the end of each month	$ - -	`－` `－`	66,672) ($ 66,672	(35%) 66%	`－` `－`

Table 3, Page 1

Table 4

Expressed in thousands of NTD

ScinoPharm Taiwan, Ltd. and Subsidiaries

- Significant inter company transactions during the reporting period

For the six-month period ended June 30, 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 0	ScinoPharm Taiwan, Ltd. ScinoPharm Taiwan, Ltd.	SciAnda (Changshu) Pharmaceuticals, Ltd. SciAnda Shanghai Biochemical Technology, Ltd.	1 1 1 1	Purchases Accounts Payable Endorsements and guarantees Sales	181,957 $ 66,672 300,509 19,461	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	13% 1% 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 consolidated financial statements (CNY:NTD 1:4.293 ； USD:NTD 1:31.14).

Table 4, Page 1

ScinoPharm Taiwan, Ltd. and Subsidiaries

Names, locations and other information of investee companies ( not including investees in Mainland China) For the six-month period ended June 30, 2023

Table 5

Expressed in thousands of NTD

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held as atJune30,2023	Shares held as atJune30,2023	Shares held as atJune30,2023	Net profit (loss) of the investee for the six-month period endedJune30,2023	Investment income (loss) recognised by the Company for the six-month period ended June30,2023	Footnote
				Balance as at June30,2023	Balance as at December31,2022	Number of shares	Ownership (%)	Bookvalue
ScinoPharm Taiwan, Ltd.	SPT International, Ltd. ScinoPharm Singapore Pte Ltd.	Tortola, British Virgin Islands Singapore	Professional investment Professional investment	3,690,857 $ -	3,690,857 $ -	118,524,644 2	100.00 100.00	1,423,266 $ 179	15,488) ($ 13	30,329) ($ 13	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 consolidated financial statements (USD:NTD 1:31.14).

Table 5, Page 1

ScinoPharm Taiwan, Ltd. and Subsidiaries

Table 6

Expressed in thousands of NTD

Information on investments in Mainland China `－` Basic information

For the six-month period ended June 30, 2023

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 six-month period ended June 30,2023	Amount remitted from Taiwan to Mainland China/ Amount remitted back to Taiwan for the six-month period ended June 30,2023	Accumulated amount of remittance from Taiwan to Mainland China as of June 30,2023	Net income (loss) of investee for the six-month period ended June 30,2023	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the six-month period ended June 30,2023	Book value of investments in Mainland China as of June 30,2023	Accumulated amount of investment income remitted back to Taiwan as of June 30,2023	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.	3,627,810 $ 37,368	`（`Note 1`）` `（`Note 1`）`	3,619,228 $ 37,368	- $ -	- $ -	3,619,228 $ 37,368	16,052) ($ 523	100% 100%	16,052) ($ 523	1,485,224 $ 18,322	- $ -	Subsidary (Note 2) Subsidary (Note 3)

Accumulated amount of Investment amount approved by remittance from Taiwan to the Investment Commission of Ceiling on investments in Mainland Mainland China the Ministry of Economic China imposed by the Investment Company name as of June 30, 2023 Affairs (MOEA) Commission of MOEA (Note 4) ScinoPharm $ 3,694,715 $ 3,694,715 $ 6,105,987 Taiwan, Ltd.

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

Note 2: The investment income (loss) recognized by the Company for the six-month period ended June 30, 2023 was based on reviewed financial statements of investee companies as of and for the six-month period ended June 30, 2023.

Note 3: The investment income (loss) recognised by the Company for the six-month period ended June 30, 2023 was based on unreviewed financial statements of investee companies as of and for the six-month period ended June 30, 2023. Note 4: The ceiling amount is 60% of the higher of net worth or consolidated net worth.

Table 6, Page 1

Name of the keyshareholder Table 7		ScinoPharm Taiwan, Ltd. and Subsidiaries Major shareholders information June 30, 2023 Number of shares	ScinoPharm Taiwan, Ltd. and Subsidiaries Major shareholders information June 30, 2023 Number of shares	ScinoPharm Taiwan, Ltd. and Subsidiaries Major shareholders information June 30, 2023 Number of shares	Ownership (%)	Footnote Expressed in shares

		June 30, Number of	June 30,
	Common stock			Preferred stock
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

AI assistant

SPT — Interim / Quarterly Report 2023

51922_rns_2023-11-09_39c2a788-96db-4c17-9df2-3c8a44a4b076.pdf

INDEPENDENT AUDITORS’ REVIEW REPORT TRANSLATED FROM CHINESE

Introduction

Scope of review

Basis for qualified conclusion

Qualified conclusion

SCINOPHARM TAIWAN, LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS JUNE 30, 2023, DECEMBER 31, 2022 AND JUNE 30, 2022 (Expressed in thousands of New Taiwan dollars)

SCINOPHARM TAIWAN, LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

SCINOPHARM TAIWAN, LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME SIX MONTHS ENDED JUNE 30, 2023 AND 2022

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

SCINOPHARM TAIWAN, LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY SIX MONTHS ENDED JUNE 30, 2023 AND 2022 (Expressed in thousands of New Taiwan dollars)

SCINOPHARM TAIWAN, LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS SIX MONTHS ENDED JUNE 30, 2023 AND 2022 (Expressed in thousands of New Taiwan dollars)

SCINOPHARM TAIWAN, LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS SIX MONTHS ENDED JUNE 30, 2023 AND 2022 (Expressed in thousands of New Taiwan dollars)

SCINOPHARM TAIWAN, LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2023 AND 2022

1. HISTORY AND ORGANISATION

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

the Group

None.

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

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(1) Compliance statement

(2) Basis of preparation

(4) Employee benefits

Defined benefit plans

(5) Income tax

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

UNCERTAINTY

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) CASH AND CASH EQUIVALENTS

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

(3) ACCOUNTS RECEIVABLE, NET

(4) INVENTORIES

ended June 30, 2023.

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

NON-CURRENT

(6) PROPERTY, PLANT AND EQUIPMENT

(8) SHORT-TERM BORROWINGS

(9) OTHER PAYABLES

(10) PENSIONS

(11) SHARE CAPITAL

(12) CAPITAL RESERVES

(13) SHARE-BASED PAYMENT – EMPLOYEES’ COMPENSATION

(14) RETAINED EARNINGS

(15) OTHER EQUITY ITEMS

(16) OPERATING REVENUE

(17) INTEREST INCOME

(18) OTHER INCOME

(19) OTHER GAINS AND LOSSES

(20) FINANCE COSTS

(21) EXPENSES BY NATURE

(23) INCOME TAX

A. Income tax expense

(24) EARNINGS PER SHARE (“EPS”)

(25) SUPPLEMENTAL CASH FLOW INFORMATION

(26) CHANGES IN LIABILITIES FROM FINANCING ACTIVITIES

7. RELATED PARTY TRANSACTIONS

(1) Parent and ultimate controlling party

(2) Names of related parties and relationship

Names of related parties

Relationship with the Company

(3) Significant transactions and balances with related parties

Other expenses

(4) Key management compensation

8. PLEDGED ASSETS

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED CONTRACT

COMMITMENTS

10. SIGNIFICANT DISASTER LOSS: None.

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE: None.

12. OTHERS

(1) Capital management

(2) Financial instruments

A. Financial instruments

B. Risk management policies

(b) Credit risk

(c) Liquidity risk

(3) Fair value information

13. SUPPLEMENTARY DISCLOSURES

(1) Significant transactions information

SPT Interim / Quarterly Report 2023

Information on investments in Mainland China `－` Basic information