SHINKONG SYNTHETIC FIBERS CORPORATION AND SUBSIDIARIES

Consolidated Financial Statements for the Three Months Ended March 31,2024 and 2023 Independent Auditors' Review Report

Notice to Readers

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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$\S$ TABLE OF CONTENTS

Items		Page	Financial reports No.
1.	Cover Page	1	-
2.	Table of Contents	2	-
3.	Independent Auditors' Report	3 - 4	-
4.	Consolidated Balance Sheets	5	-
5.	Consolidated Statements of Comprehensive Income	6 - 7	-
6.	Consolidated Statements of Changes In Equity	8	-
7.	Consolidated Statements of Cash Flows	9 - 10	-
8.	Notes to Consolidated Financial Statements
	a. General Information	11	1
	b. Approval of Financial Statements	11	2
	c. Application of New, Amendments and Revised Standards and Interpretations.	11	3
	d. Summary of Material Accounting Policies Information	12 - 13	4
	e. Material Accounting Judgments and Key Sources of Estimation Uncertainty	14	5
	f. Details of Significant Accounts	14 - 63	6 - 37
	g. Related Party Transactions	73 -77	40
	h. Pledged Assets	78	41
	i. Significant Contingent Liabilities and Unrecognized Contractual Commitments	78 - 81	42
	j. Significant Disaster Losses	-	-
	k. Significant Events After the Reporting Period	-	-
	l. Others	64 - 73, 81 - 123	38 - 39, 43 - 49
	m. Note Disclosures
	(i) Information on Significant Transactions:	123	50
	(ii) Information on Investees	124	50
	(iii) Information on Investments in Mainland China	124	50
	(iv) Information on Major Shareholders	124	50
	n. Departmental Information	124-125	51

Independent Auditors' Review Report

The Board of Directors and Shareholders
Shinkong Synthetic Fibers Corporation

Introduction

We have reviewed the accompanying consolidated balance sheets of Shinkong Synthetic Fibers Corporation and its subsidiaries (collectively, the "Group") as of March 31, 2024 and 2023, and the related consolidated statements of comprehensive income, the consolidated statements of changes in equity and cash flows for the three months then ended, and the related notes to the consolidated financial statements, including material accounting policy information (collectively referred to as the "consolidated financial statements"). Management is responsible for the preparation and fair presentation of the 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" endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews.

Scope

Except as described in the following paragraph, we conducted our reviews in accordance with the Standards on Review Engagements of the Republic of China 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". 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.

Basis for Qualified Conclusion

As disclosed in Note 15 to the consolidated financial statements, the financial statements of some non-significant subsidiaries included in the above Consolidated Financial Statements referred to in the first paragraph were not reviewed. The total assets as of March 31, 2024 and 2023 were NT$145,105,854 thousand and NT$124,822,312 thousand respectively, accounting for 71.08% and 68.14% of the total consolidated assets respectively. The total liabilities were NT$137,858,784 thousand and 117,255,457 thousand respectively. Accounting for 87.29% and 84.85% of the total consolidated liabilities respectively, its total comprehensive profits and losses from January 1 to March 31, 2024 and 2023 were respectively NT$242,734 thousand and NT$438,066 thousand, account respectively 72.53% and 71.22%.

Qualified Conclusion

Based on our reviews, except for adjustments, if any, as might have been determined to be necessary had the financial statements of the non-significant subsidiaries as described in the preceding paragraph been reviewed, nothing has come to our attention that caused 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 of March 31, 2024 and 2023, and of its consolidated financial performance and its consolidated cash flows for the three months ended March 31, 2024 and 2023 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers., Regulations Governing the Preparation of Financial Reports by Public Banks, Regulations Governing the Preparation of Financial Reports by

Securities Firms, Regulations Governing the Preparation of Financial Reports by Futures Commission Merchants and International Accounting Standard 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

The engagement partners on the reviews resulting in this independent auditor’s review report are Wen-Hsiang Chen and Wen-Yea Shyu.

Deloitte & Touche
Taipei, Taiwan
Republic of China
May 7, 2024

Notice to Readers

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, Deloitte & Touche 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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SHINKONG SYNTHETIC FIBERS CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets
March 31, 2024 and 31 December and March 31, 2023

Unit: NT Sthousands
March 31, 2023

Code	Assets	March 31, 2024		December 31, 2023		Amount
		Amount	%	Amount	%	Amount	%
CURRENT ASSETS
1100	Cash and cash equivalents (Notes 6 and 39)	$ 11,662,037	6	$ 10,499,318	6	$ 10,105,239	6
1118	Due from the Central Bank and call loans to other banks (Note 7)	3,822,227	2	4,274,003	2	3,725,052	2
1120	Current financial assets at fair value through profit or loss (Notes 8 and 39)	1,696,455	1	1,474,320	1	1,288,239	1
1125	Current financial assets at FVTOC (Notes 9, 39 and 41)	6,415,438	3	4,495,217	2	3,494,875	2
1145	Current financial assets at amortized cost (Notes 10, 39 and 41)	1,978,942	1	1,083,613	1	937,374	1
1180	Bills and bonds purchased under resale agreements (Note 11)	3,192,130	1	2,296,769	1	2,842,929	2
1190	Other financial assets - current (Notes 39 and 41)	1,171,097	1	1,487,783	1	892,340	-
1201	Notes receivable (Notes 12, 39 and 40)	2,759,289	1	2,423,642	1	2,947,086	2
1202	Accounts receivable (Notes 12, 39 and 40)	19,536,845	10	16,914,458	9	14,932,583	8
1203	Other receivables (Notes 12 and 39)	792,904	-	632,804	-	492,274	-
1240	Margin loans receivable	11,684,826	6	9,926,738	5	7,018,439	4
1250	Customer margin accounts	2,167,640	1	1,726,956	1	1,654,776	1
1270	Inventories (Note 13)	5,990,290	3	6,034,038	3	6,272,619	3
1280	Prepayments	763,472	-	684,914	-	573,577	-
1320	Other current assets (Note 23)	7,760,867	4	7,128,123	4	6,022,017	3
1330	Discounts and loans, net (Notes 14, 39 and 40)	54,750,212	27	54,858,632	28	55,616,734	30
11XX	Total current assets	136,144,671	67	125,981,330	65	118,816,151	65
NON-CURRENT ASSETS
1410	Non-current financial assets at fair value through profit or loss (Notes 8 and 39)	63,724	-	63,724	-	98,408	-
1415	Non-current financial assets at FVTOC (Notes 9, 39 and 41)	8,283,617	4	9,053,576	5	8,088,279	5
1435	Non-current financial assets at amortized cost (Notes 10, 39 and 41)	18,308,358	9	18,643,365	10	17,780,127	10
1470	Investments accounted for using the equity method (Notes 16 and 36)	2,057,518	1	2,079,499	1	1,625,796	1
1480	Other financial assets - non-current (Notes 39 and 41)	132,931	-	135,255	-	134,595	-
1500	Property, plant and equipment, net (Notes 17 and 41)	22,175,783	11	22,260,544	11	20,468,298	11
1595	Right-of-use Assets (Notes 18 and 40)	3,621,046	2	3,568,616	2	3,634,665	2
1600	Investment property, net (Notes 19 and 41)	2,363,113	1	2,368,951	1	2,385,702	1
1710	Goodwill (Note 20)	280,204	-	280,204	-	280,204	-
1720	Other intangible assets, net (Note 21)	142,790	-	143,342	-	150,527	-
1800	Deferred tax assets (Note 33)	582,322	-	611,086	-	592,269	-
1970	Other Assets (Notes 23 and 41)	9,670,071	5	9,582,483	5	8,810,540	5
1910	Operating deposits and settlement funds (Note 22)	313,871	-	309,621	-	308,324	-
14XX	Total non-current assets	67,995,548	33	69,102,198	35	64,357,734	35
1XXX	TOTAL ASSETS	$ 204,140,019	100	$ 195,043,528	100	$ 183,173,885	100
Code	Liabilities and Equity
CURRENT LIABILITIES
2110	Short-term borrowings (Notes 24, 39, 40 and 41)	$ 11,311,455	6	$ 9,931,914	5	$ 7,657,535	4
2120	Short-term notes and bills payable (Notes 24, 39 and 41)	14,373,791	7	12,122,019	6	11,887,895	7
2130	Notes and bonds issued under reprochase agreement (Note 11)	2,552,670	1	3,313,718	2	2,723,830	1
2140	Current financial liabilities at fair value through profit or loss (Notes 8 and 39)	-9,524	-	10,223	-	-7,281	-
2190	Due to the Central Bank and other banks	4,303,530	2	2,918,153	1	3,720,430	2
2201	Notes payable (Notes 26 and 39)	930,299	1	216,626	-	184,508	-
2202	Trade payables (Notes 26, 39 and 40)	9,951,134	5	7,290,727	4	6,462,104	4
2204	Other payables (Notes 28 and 39)	3,450,656	2	2,680,508	1	3,792,208	2
2240	Deposits received from securities borrowers	631,797	-	1,208,389	1	701,410	-
2290	Deposits payable for securities financing	677,441	-	1,310,746	1	711,246	-
2300	Fichiers traders Equity	2,166,949	1	1,726,351	1	1,654,194	1
2310	Current tax liabilities (Note 33)	439,822	-	303,803	-	713,349	-
2330	Long-term payable liabilities (Long-term liabilities, current portion) (Notes 24, 25, 39 and 41)	5,312,581	3	5,708,641	3	5,268,725	3
2335	Loans Liabilities-current (Notes 18, 39 and 40)	451,575	-	434,592	-	413,859	-
2350	Other current liabilities (Note 28)	1,418,233	1	695,835	-	1,063,613	1
2360	Deposits and remittances (Notes 27 and 40)	74,264,772	36	73,558,473	38	70,723,284	39
21XX	Total current liabilities	132,246,229	65	123,432,958	63	117,685,491	64
NON-CURRENT LIABILITIES
2540	Bonds payable (Notes 25 and 39)	5,820,000	3	5,820,000	3	6,320,000	4
2550	Long-term borrowings (Notes 24, 39 and 41)	16,041,094	8	15,128,768	8	9,926,941	5
2600	Provisions - non-current (Note 29)	144,863	-	162,243	-	233,562	-
2620	Guarantee deposits received (Note 28)	226,175	-	233,225	-	265,473	-
2625	Leases Liabilities-non-current (Notes 18, 39 and 40)	1,803,764	1	1,762,042	1	1,786,544	1
2660	Other Liabilities (Note 28)	127,522	-	127,401	-	311,717	-
2630	Deferred tax liabilities (Note 33)	1,530,519	-	1,531,812	1	1,660,275	1
25XX	Total non-current liabilities	25,693,737	12	24,763,491	13	20,304,512	11
2XXX	Total Liabilities	157,939,966	77	148,198,449	76	138,190,003	75
EQUITY (Note 31)
Equity Attributable to Owners of the Company
3110	Ordinary share	16,184,093	8	16,184,093	8	16,184,093	9
3200	Capital surplus	1,958,429	1	1,963,101	1	1,949,395	1
Retained earnings
3310	Legal reserve	2,544,458	2	2,544,458	1	2,254,830	1
3320	Special reserve	2,328,591	1	2,328,591	1	2,328,591	1
3330	Unappropriated retained earnings	8,406,174	4	8,754,216	5	8,316,089	5
3300	Retained earnings Total	13,279,223	7	13,667,565	7	12,899,510	7
3400	Other equity	4,265,954	2	4,566,158	3	3,347,319	2
3500	Treasury shares	( 29,838 )	-	( 29,834 )	-	( 29,834 )	-
31XX	Total equity attributable to owners of parent	10,542,208	5	10,493,996	5	10,633,399	6
32XX	Non-controlling interests	10,542,208	5	10,493,996	5	10,633,399	6
33XX	Total equity	46,200,053	23	46,845,079	24	44,983,882	25
4XXX	TOTAL LIABILITIES AND EQUITY	$ 204,140,019	100	$ 195,043,528	100	$ 183,173,885	100

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

(Please refer to Deloitte & Touche May 7, 2024)

SHINKONG SYNTHETIC FIBERS CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

January 1 to March 31, 2024 and 2023

Unit: NT $thousands
Earnings per share (NT $)

Code		January 1 to March 31, 2024		January 1 to March 31, 2023
		Amount	%	Amount	%
	REVENUE (Notes 32 and 40)
4010	Interest income	$ 747,840	7	$ 610,787	7
4050	Fee income	539,018	5	385,221	4
4090	Net gain on fair value changes of financial assets and liabilities at fair value through profit or loss	7,189	-	20,132	-
4105	Realized gain on financial assets at fair value through Other comprehensive income	5,768	-	2,957	-
4160	Net sales revenue	9,041,151	83	7,900,588	87
4170	Rental revenue	137,268	1	97,072	1
4210	Gains on disposals of property, plant and equipment	-	-	1,442	-
4200	Gains on disposals of investments	11,570	-	7,276	-
4260	Foreign exchange gains	254,256	3	-	-
4280	Unrealized profit from sales	2,340	-	1,059	-
4270	Other revenue	136,883	1	118,834	1
4XXX	Total revenue	10,883,283	100	9,145,368	100
	EXPENSES (Notes 12, 13, 16, 17, 32 and 40)
5010	Finance costs	490,895	5	392,260	4
5080	Share of loss of associates and joint ventures accounted for using the equity method	11,663	-	16,454	-
5090	Bad debt expense, commitment and guarantee liability provision (reversal)	8,411	-	( 12,435 )	-
5190	Cost of goods sold	8,421,168	78	7,300,346	80
5200	Cost of rental sales	18,277	-	16,361	-
	Operating expenses
5231	Selling expenses	317,596	3	288,531	3
5232	General and administrative expenses	648,141	6	560,918	6
5233	Research and development expenses	125,180	1	112,767	1
5230	Total operating expenses	1,090,917	10	962,216	10
5250	Losses on disposals of property, plant and equipment	362	-	-	-
5280	Impairment losses	824	-	824	-
5285	Expected credit loss	10,369	-	11,466	-

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Code		January 1, 2024 to 31 March		January 1, 2023 to 31 March
		Amount	%	Amount	%
5290	Foreign exchange losses	$ -	-	$ 52,409	1
5320	Other expense	139,099	1	139,217	2
5XXX	Total Disbursement	10,191,985	94	8,879,118	97
6100	Profit (loss) from continuing operations before tax	691,298	6	266,250	3
6200	INCOME TAX EXPENSE (Notes 4 and 33)	169,023	1	136,511	2
6500	Net profit for the year	522,275	5	129,739	1
	OTHER COMPREHENSIVE INCOME (Note 31)
6610	Item that will not be reclassified to profit or loss:
6617	(Loss) gain on valuation of Other comprehensive income as per Fair value's Equity instrument	( 217,846 )	( 2 )	263,368	3
6625	Share from associates accounted for using the equity method on other comprehensive income	( 12,658 )	-	204,303	3
6650	Item that may be reclassified subsequently to profit or loss:
6651	Exchange differences on translating the financial statements of foreign operations	56,518	-	4,163	-
6659	(Loss) gain on debt instruments at Fair value through other comprehensive income	( 13,605 )	-	13,498	-
6600	Other comprehensive income total.	( 187,591 )	( 2 )	485,332	6
6700	TOTAL COMPREHENSIVE INCOME	$ 334,684	3	$ 615,071	7
	NET PROFIT ATTRIBUTABLE TO:
6810	Owners of the Company	$ 354,219	3	$ 24,661	-
6820	Non-controlling interests	168,056	2	105,078	1
6800		$ 522,275	5	$ 129,739	1
	TOTAL CONSOLIDATED PROFIT AND LOSS ATTRIBUTABLE TO
6910	Owners of the Company	$ 201,559	2	$ 487,664	5
6920	Non-controlling interests	133,125	1	127,407	2
6900	total profit and loss attributable	$ 334,684	3	$ 615,071	7
	EARNINGS PER SHARE (Note 34)
7000	Basic earnings per share	$ 0.22		$ 0.02
7100	Diluted earnings per share	$ 0.22		$ 0.02

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

(Please refer to Deloitte & Touche Report May 7, 2024)

Jumary 1 to March 31, 2024 and 2023

Unit: NT Bthousands

Dividends per share: NT $

SHINKONG SYNTHETIC FIBERS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

Cod e	Equity Attributable to Owners of the Company
	Share capital	Capital surplus	Retained earnings			Other equity items			Treasury shares	Total	Non-controlling interests
			Legal reserve	Special reserve	Unappropriated retained earnings	Exchange Differences on Translating the Financial Statements of Foreign Operations	Unrealized Valuation Gain (Loss) on Financial Assets at Fair Value Through Other Comprehensive Income
A1	$ 16,184,093	$ 1,950,312	$ 2,254,830	$ 2,328,591	$ 9,909,756	($ 148,467)	$ 3,032,864	($ 29,834)	$ 35,482,145	$ 10,595,730	$ 46,077,875
Appropriation of 2022 earnings
B5	Cash dividends	-	-	-	( 1,618,409 )	-	-	-	( 1,618,409 )	-	( 1,618,409 )
M5	Actual partial acquisition of interests in subsidiaries	-	48	-	-	-	-	-	48	( 48 )	-
M7	Changes in percentage of ownership interest in subsidiaries	-	( 965 )	-	-	-	-	-	( 965 )	965	-
D1	Net profit from January 1 to March 31, 2023	-	-	-	-	24,661	-	-	24,661	105,078	129,739
D3	Other comprehensive income (loss), net of income tax	-	-	-	-	( 1,434 )	464,437	-	463,003	22,329	485,332
D5	Total comprehensive income (loss)	-	-	-	-	24,661	( 1,434 )	464,437	-	127,407	615,071
O1	Changes in non-controlling interests	-	-	-	-	-	-	-	-	( 90,655 )	( 90,655 )
Q1	Disposal of investments accounted for under Other comprehensive income Fair value Equity	-	-	-	-	81	-	( 81 )	-	-	-
Z1	Balance at March 31, 2023	$ 16,184,093	$ 1,949,395	$ 2,254,830	$ 2,328,591	$ 8,316,089	($ 149,901)	$ 3,497,220	($ 29,834)	$ 34,350,483	$ 10,633,399
A1	Balance at January 1, 2024	$ 16,184,093	$ 1,963,101	$ 2,544,458	$ 2,328,591	$ 8,794,516	($ 188,906)	$ 4,755,064	($ 29,834)	$ 36,351,083	$ 10,493,996
B5	Appropriation of 2022 earnings Cash dividends	-	-	-	-	( 890,125 )	-	-	( 890,125 )	-	( 890,125 )
M7	Changes in percentage of ownership interest in subsidiaries	-	( 4,672 )	-	-	-	-	-	( 4,672 )	4,672	-
D1	Net profit from January 1 to March 31, 2024	-	-	-	-	354,219	-	-	354,219	168,056	522,275
D3	Other comprehensive income (loss), net of income tax	-	-	-	-	-	86,219	( 238,879 )	-	( 152,660 )	( 34,931 )
D5	Total comprehensive income (loss)	-	-	-	-	354,219	86,219	( 238,879 )	-	201,559	133,125
O1	Changes in non-controlling interests	-	-	-	-	-	-	-	-	( 89,585 )	( 89,585 )
Q1	Disposal of investments accounted for under other comprehensive income fair value-equity, instruments/disposal of investments accounted for under fair value-equity, Instruments	-	-	-	-	147,564	-	( 147,564 )	-	-	-
Z1	Balance at March 31, 2024	$ 16,184,093	$ 1,958,429	$ 2,544,458	$ 2,328,591	$ 8,406,174	($ 102,687 )	$ 4,368,621	($ 29,834)	$ 35,657,845	$ 10,542,208

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

(Please refer to Deloitte & Touche May 7, 2024)

SHINKONG SYNTHETIC FIBERS CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

January 1 to March 31, 2024 and 2023

Unit: NT $thousands

Code	CASH FLOWS FROM OPERATING ACTIVITIES	January 1, 2024 to 31 March	January 1, 2023 to 31 March
A10000	Profit before tax	$ 691,298	$ 266,250
A20010	Total adjustments to reconcile profit (loss)
A20100	Depreciation expenses	521,464	465,946
A20200	Amortization expenses	3,821	3,349
A20300	Expected credit loss recognized on trade receivables	18,780	( 969 )
A20400	Net gain on financial assets or liabilities at fair value through profit or loss	( 7,189 )	( 20,132 )
A20900	Finance costs	490,895	392,260
A21200	Interest income	( 747,840 )	( 610,787 )
A22300	Share of loss of associates accounted for using the equity method	11,663	16,454
A22500	Loss on disposal of property, plant and equipment (Gain)	362	( 1,442 )
A23100	Gains on disposals of investments	( 17,338 )	( 10,233 )
A23700	Impairment loss recognized in profit or loss, property, plant and equipment	824	824
A23900	Unrealized profit from sales	( 2,340 )	( 1,059 )
A24100	Unrealized foreign exchange (gain) loss	( 261,114 )	81,329
A29900	Gain on lease modification	( 44 )	( 418 )
A90000	Changes in operating assets and liabilities
A91110	Decrease (increase) in due from the Central Bank and call loans to banks	451,776	( 280,996 )
A91120	(Increase) decrease in financial assets at fair value through profit or loss	( 204,075 )	43,716
A91190	Increase in receivables	( 3,017,026 )	( 1,183,093 )
A91230	Increase in securities financing receivables	( 1,758,088 )	( 529,454 )
A91240	(Increase) decrease in customers’ margin accounts	( 440,684 )	155,962
A91250	Decrease in inventories (increase)	43,748	( 181,763 )
A91260	Increase in prepayments	( 78,558 )	( 47,777 )
A91280	Increase in other current assets	( 632,744 )	( 381,207 )
A91290	Decrease (increase) in discounts and loans	99,542	( 623,486 )
A92150	Increase in deposits from the Central Bank and banks	1,385,377	219,278
A92160	Increase in Other payables items	3,337,929	944,927
A92200	Increase (decrease) in deposits received from securities borrowers	( 576,592 )	( 1,181,257 )
A92290	Increase (decrease) in deposits and remittances	706,299	( 428,591 )
A92250	Decrease in payable for securities financing as collateral	( $ 633,305 )	( $ 910,912 )
A92260	Increase (decrease) in futures traders Equity	440,398	( 155,994 )
A92280	Increase in other current liabilities (Decrease)	588,111	( 176,243 )
A92310	Decrease in employee benefits provisions	( 17,380 )	( 18,159 )
A33000	Cash inflow generated from operations (out)	397,970	( 4,153,677 )
A33100	Interest received	723,966	619,604
A33300	Interest paid	( 470,317 )	( 352,036 )
A33500	Income tax paid	( 6,880 )	( 8,662 )
AAAA	Net cash flows from operating activities (out)	644,739	( 3,894,771 )

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Code		January 1, 2024 to 31 March	January 1, 2023 to 31 March
	Cash flows from (used in) investing activities
B00010	Acquisition of financial assets at FVTOCI	( 2,259,864 )	( 511,224 )
B00020	Proceeds from disposal of financial assets at FVTOCI	928,437	407,861
B00040	Purchase of financial assets at amortized cost	( 13,095,327 )	( 10,966,925 )
B00050	Proceeds from disposal of financial assets at amortized cost	12,677,960	11,534,594
B02700	Payments for property, plant and equipment	( 448,822 )	( 510,884 )
B02800	Proceeds from disposal of property, plant and equipment	1,104	7,318
B03300	Increase in operating guarantee deposits	( 4,250 )	-
B03400	Decrease in operating guarantee deposits	-	2,512
B03700	Increase in refundable deposits	( 55,292 )	-
B03800	Decrease in refundable deposits	-	105,776
B04100	(Increase) decrease in other receivables	( 130,296 )	132,687
B04500	Acquisition of intangible assets	( 1,332 )	( 2,216 )
B05700	(Increase) decrease in securities purchased under resell agreements	( 895,361 )	463,169
B06500	Decrease in other financial assets (increase)	319,010	( 49,624 )
B06800	Decrease (increase) in other assets	16,213	( 115,169 )
BBBB	Net cash (used in) generated from investing activities	( 2,947,820 )	497,875
	Cash flows from financing activities
C00100	Increase in short-term loans	1,379,541	-
C00200	Decrease in short-term loans	-	( 200,110 )
C00500	Increase in short-term notes and bills payable	2,251,772	5,356,318
C01800	Increase in other borrowings	516,266	-
C01900	Decrease in other borrowings	-	( 1,516,056 )
C02100	Decrease in notes and bonds issued under repurchase agreement	( 763,088 )	( 1,249,954 )
C03000	Increase in guarantee deposits received	-	10,919
C03100	Decrease in guarantee deposits received	( 7,050 )	-
C04020	Payment of the principal portion of lease liabilities	( 50,172 )	( 57,121 )
C04300	Increase in other non-current liabilities	$ 30,471	$ 101,860
C05800	Changes in non-controlling interests	( 89,585 )	( 90,655 )
CCCC	Net cash flows from financing activities	3,268,155	2,355,201
DDDD	Effect of exchange rate changes on cash and cash equivalents	197,645	( 43,009 )
EEEE	Increase (decrease) in Cash and cash equivalents	1,162,719	( 1,084,704 )
E00100	Cash and cash equivalents at beginning of period	10,499,318	11,189,943
E00200	Cash and cash equivalents at end of period	$ 11,662,037	$ 10,105,239

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

(Please refer to Deloitte & Touche May 7, 2024)

SHINKONG SYNTHETIC FIBERS CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

January 1 to March 31, 2024 and 2023

(Only reviewed, not audited in accordance with Auditing Standards)

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

GENERAL INFORMATION

Shinkong Synthetic Fibers Corporation (hereinafter referred to as the "Company") was established in 1967 with an initial capital of NT $22,500 thousand. After several capital increases, share capital has a total of NT $16,184,093 thousand at present. The main business item is engaged in the manufacturing and sales of chemical fiber and plastic related products. The Company's shares have been listed on the Taiwan Stock Exchange since August 1973.

The consolidated financial statements are presented in the Company's functional currency, the New Taiwan Dollars.

APPROVAL OF FINANCIAL STATEMENTS

The consolidated financial statements were approved by the Company's board of directors on May 7, 2024.

IMPLEMENTATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

(1) Initial application of the amendments to the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, the "IFRS Accounting Standards") endorsed and issued into effect by the Financial Supervisory Commission (FSC).

The initial application of the IFRSs endorsed and issued into effect by the FSC did not have material impact on the Group's accounting policies.

(2) IFRSs issued by IASB but not yet endorsed and issued into effect by the Financial Supervisory Commission

New, Amended and Revised Standards and Interpretations	Effective Date Announced by IASB (Note 1)
Amendments to IFRS 10 and IAS 28 “sale or contribution of assets between an investor and its associate or joint venture”	To be determined
IFRS 17 “Insurance Contracts”	January 1, 2023
Amendments to IFRS 17	January 1, 2023
Amendments to IFRS 17 “Initial Application of IFRS 9 and IFRS 17 - Comparative Information”	January 1, 2023
IFRS18 “Presentation and Disclosure of Financial Statements”	January 1, 2027
Amendments to IAS 21 “Lack of Exchangeability”	January 1, 2025 (Note 2)

Note 1: Unless stated otherwise, the above IFRS Accounting Standards will be effective for annual reporting periods beginning on or after their respective effective dates.

Note 2: An entity shall apply those amendments for annual reporting periods beginning on or after January 1, 2025. The Corporation and its subsidiaries shall not restate

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prior reporting periods when the amendments are first applied and shall recognize the effect of exchange differences on the translation of foreign operations under retained earnings or equity at the date of initial application (where applicable) and the related impact of assets and liabilities.

IFRS18 “Presentation and Disclosure of Financial Statements”

IFRS 18 will replace IAS 1 "Presentation of Financial Statements." The main changes in the standard include:

The income statement should categorize income and expense items into operating, investing, financing, income tax and discontinued operations.
The statement of comprehensive income shall be presented in the form of operating profit or loss, profit or loss before financing and income tax, and the subtotal of profit or loss and total.
Provide guidance to strengthen the aggregation and segmentation requirements: In the context of consolidated financial statements, the Company is required to identify assets, liabilities, equity, revenue, expenses, and cash flows arising from individual transactions or other events. These items should be classified and aggregated based on common characteristics. Each line item reported in the primary financial statements should exhibit at least one similar characteristic. If there are items with distinct features, they should be further detailed in both the primary financial statements and accompanying notes. The label “Other” is only used when a more informative name cannot be found.
Enhancing the disclosure of performance measurement defined by the management: When communicating with external stakeholders beyond the financial statements and discussing specific aspects of the overall financial performance of the consolidated company, management should disclose relevant information related to performance measures defined by management. This disclosure should include a description of the measure, its calculation methodology, adjustments to subtotals or aggregates specified by IFRS accounting standards, and the impact of related adjustments on income taxes and non-controlling interests.

Except for the above impact, as of the date the consolidated financial statements were authorized for issue, the Group is continuously assessing the possible impact that the application of other standards and interpretations will have on the Group’s financial position and financial performance and will disclose the relevant impact when the assessment is completed.

4. SUMMARY OF MATERIAL ACCOUNTING POLICIES INFORMATION

(1) Statement of compliance

The consolidated financial statements have been prepared in accordance with Regulations Governing the Preparation of Financial Reports by Securities Issuers., Regulations Governing the Preparation of Financial Reports by Public Banks, Regulations Governing the Preparation of Financial Reports by Securities Firms, Regulations Governing the Preparation of Financial Reports by Futures Commission Merchants, and IAS 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission. The consolidated financial statements do not include all IFRSs disclosures required for the full annual financial statements.

(2) Basis of preparation

The consolidated financial statements have been prepared on the historical cost basis except for financial instruments under Fair value and net defined benefit liabilities which

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are measured at the present value of the defined benefit obligation less the fair value of plan assets.

Fair value is divided into Levels 1 to 3 based on the observability and importance of the relevant input values:

a. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities;
b. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for an asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and
c. Level 3 inputs are unobservable inputs for an asset or liability.

(3) Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Company and the entities controlled by the Company (i.e., its subsidiaries). Income and expenses of subsidiaries acquired or disposed of during the period are included in the consolidated statement of profit or loss and other comprehensive income from the effective dates of acquisitions up to the effective dates of disposals, as appropriate. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those of the Group. All intra-group transactions, balances, income and expenses are eliminated in full upon consolidation. Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

Changes in the Group's ownership interest in a subsidiary that do not result in the Group losing control of the subsidiary Equity are accounted for as transactions with Equity. The carrying amounts of the interests of the Group and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to the owners of the Company.

When the Group loses control of a subsidiary, a gain or loss is recognized in profit or loss and is calculated as the difference between (i) the aggregate of the fair value of the consideration received and any investment retained in the former subsidiary at its fair value at the date when control is lost and (ii) total, the former subsidiary's assets (including goodwill) and liabilities and non-controlling interests, at their carrying amounts at the date when control is lost. The group accounts for all amounts recognized in other comprehensive income in relation to that subsidiary on the same basis as would be required if the Group had directly disposed of the related assets or liabilities.

The fair value of any investment retained in the former subsidiary at the date when control is lost is regarded as the fair value on initial recognition for subsequent accounting under other comprehensive income "Financial Fair value Financial Instruments Assets" and Fair value "Financial Assets" at the date when control is lost.

See Note 15 and Table 5 for detailed information on subsidiaries (including percentages of ownership and main businesses).

(4) Other significant accounting policies

Except for the following, please refer to the summary of significant accounting policies in the 2023 consolidated financial report.

a. Classification of current and non-current assets and liabilities

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Current assets include:

i Assets held primarily for the purpose of trading;
ii Assets expected to be realized within 12 months after the reporting period; and
iii Cash and cash equivalents unless the asset is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period.

Current liabilities includes:

i Liabilities held primarily for the purpose of trading;
ii Liabilities due to be settled within 12 months after the reporting period; and
iii Assets Liabilities does not have a substantive right to defer settlement for at least 12 months after the reporting period.

Current assets or current liabilities are classified as non-current assets or non-current liabilities.

b. Defined benefit obligation

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

c. Income tax expense

Tax expense is the sum of the current income tax and deferred income tax. income tax for the interim period is evaluated on an annual basis, and the tax rate applicable to the expected total annual earnings is calculated based on the net profit before tax for the interim period.

5. MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Group's accounting policies, management is required to make judgments, estimations, and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and factors that are considered relevant. Actual results may differ from these estimates.

The Group considers the possible impact of international political and economic conditions on the economic environment when developing material accounting estimates. The estimates and underlying assumptions are reviewed on an ongoing basis.

6. CASH AND CASH EQUIVALENTS

	March 31, 2024	December 31, 2023	March 31, 2023
Cash on hand and working capital	$ 656,088	$ 1,205,569	$ 656,485
Checking accounts and demand deposits	6,839,604	5,554,439	5,825,206
Cash equivalents (Investments with original maturities of less than 3 months)
Notes to be exchanged	129,740	284,382	115,738
Due from banks	732,627	883,367	606,900
Short-term transactions instruments	929,046	30,040	59,845
Time deposits	2,374,932	2,541,521	2,841,065
	$ 11,662,037	$ 10,499,318	$ 10,105,239

The market rate intervals of Cash in banks and commercial paper at the end of the reporting

period were as follows:

	March 31, 2024	December 31, 2023	March 31, 2023
Bank deposit	0.001% - 5.42%	0.001% - 5.40%	0.001% - 5.1%
Short-term transactions instruments	1.27% - 1.34%	1.33%	1.1% - 1.2%

7. DUE FROM THE CENTRAL BANK AND CALL LOANS TO OTHER BANKS

	March 31, 2024	December 31, 2023	March 31, 2023
Reserve for deposits
Reserve for deposits-account A	$ 1,084,828	$ 1,595,127	$ 1,037,668
Reserve for deposits account B	2,327,657	2,278,021	2,279,444
Clearing Account of Financial Information Center	409,742	400,855	407,940
	$ 3,822,227	$ 4,274,003	$ 3,725,052

The deposit reserves are calculated at prescribed rates based on the monthly average balances of deposits. The deposit reserve account B is subject to withdrawal restrictions, but deposit reserves can be withdrawn anytime.

8. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

	March 31, 2024	December 31, 2023	March 31, 2023
Assets-current
Mandatorily classified as at FVTPL
Convertible bonds with assets exchange	$ 472,230	$ 725,240	$ 573,113
Convertible bonds	4,520	4,640	6,779
Derivative financial assets (not under hedge accounting)
— Exchange rate swap contracts (b)	119	334	58
— Foreign exchange contracts (c)	6,504	16,303	15,426
Non-derivative financial assets
— Domestic listed (OTC) stocks	51,075	52,417	45,204
— the emerging stock market	67,770	50,409	41,898
— Fund beneficiary certificate	33,510	32,677	85,341
— Domestic corporate bonds	50,059	50,074	50,272
— Foreign corporate bonds	461,322	290,477	270,392
— Notes investments	549,346	249,749	199,756
	$ 1,696,455	$ 1,474,320	$ 1,288,239
Assets-non-current
Mandatorily classified as at FVTPL
Non-derivative financial assets
— Limited partnership funds Hybrid Banking Assets	$ 63,724	$ 63,724	$ 67,064
— Puttable preferred shares	-	-	31,344
	$ 63,724	$ 63,724	$ 98,408

(Continued on next page)

(Continued from the previous page)

	March 31, 2024	December 31, 2023	March 31, 2023
Financial liabilities at FVTPL - current
Financial liabilities held for trading
Derivative financial assets (not under hedge accounting)
— Foreign exchange forward contracts (a)	$ 360	$ -	$ -
— Exchange rate swap contracts (b)	321	-	-
— Foreign exchange contracts (c)	8,843	10,223	7,281
	$ 9,524	$ 10,223	$ 7,281

(1) At the end of the reporting period, outstanding foreign exchange forward contracts not under hedge accounting were as follows:

	Currency	Maturity period	Contract Amount (In Thousands)
March 31, 2024
Forward exchange purchased	NTD to JPY	2024.12.27	NTD	20,233/	JPY
Forward exchange sold	JPY to NTD	2024.12.31	JPY	93,800/	NTD

(2) At the end of the reporting period, outstanding exchange rate swap contracts not under hedge accounting were as follows:

	Currency	Maturity period	Contract Amount (In Thousands)
March 31, 2024
Exchange rate swaps	JPY to NTD	2024.06.21 - 2024.11.21	JPY	170,000/	NTD
December 31, 2023
Exchange rate swaps	JPY to NTD	2024.06.21 - 2024.08.20	JPY	90,000/	NTD
March 31, 2023
Exchange rate swaps	JPY to NTD	2023.05.02 - 2023.07.24	JPY	80,000/	NTD

(3) At the end of the reporting period, outstanding foreign exchange swap contracts not under hedge accounting were as follows:

March 31, 2024			December 31, 2023			March 31, 2023
Contract Amount (In Thousands)		Maturity date	Contract Amount (In Thousands)		Maturity date	Contract Amount (In Thousands)		Maturity date
Buy		2024.04.18 -	Buy		2024.01.16 -	Buy		2023.04.10 -
USD	11,939	2024.04.30	USD	16,285	2024.02.23	USD	34,871	2023.08.22
AUD	1,500	2024.04.22	AUD	2,000	2024.02.21	AUD	2,100	2023.04.13
CNY	25,129	2024.04.22 - 2024.05.20	CNY	25,121	2024.01.16 - 2024.02.21	CNY	27,281	2023.04.11 - 2023.05.08
Sale		2024.04.18 -	Sale		2024.01.16 -	Sale		2023.04.13 -
JPY	1,345,868	2024.04.30	JPY	1,284,139	2024.01.31	JPY	1,203,176	2023.04.24
EUR	600	2024.04.23	EUR	600	2024.02.23	EUR	500	2023.04.17
NZD	500	2024.04.22	NZD	500	2024.02.21	NZD	500	2023.04.13
USD	24,483	2024.04.22 - 2024.05.20	USD	14,814	2024.01.16 - 2024.02.21	USD	15,452	2023.04.11 - 2023.08.23
GBP	500	2024.04.23	GBP	500	2024.02.23	GBP	500	2023.04.17
HKD	10,540	2024.04.23	HKD	10,520	2024.02.23	HKD	10,170	2023.04.17
AUD	-	-	AUD	500	2024.02.21	AUD	-	-

FINANCIAL ASSETS AT FVTOCI

	March 31, 2024	December 31, 2023	March 31, 2023
Current
Investments in equity instruments at FVTOCI	$ 1,392,155	$ 1,264,833	$ 1,191,540
Investments in debt instruments at FVTOCI	5,023,283	3,230,384	2,303,333
	$ 6,415,438	$ 4,495,217	$ 3,494,873
Non-current
Investments in equity instruments at FVTOCI	$ 8,283,617	$ 9,053,576	$ 8,088,279

(1) Investments in equity instruments at FVTOCI

	March 31, 2024	December 31, 2023	March 31, 2023
Current
Domestic investments
Listed (OTC) and the emerging stock market	$ 1,347,097	$ 1,224,981	$ 1,149,741
Unlisted (over-the-counter) stocks	45,058	39,852	41,799
	$ 1,392,155	$ 1,264,833	$ 1,191,540
Non-current
Domestic investments
Listed (OTC) and the emerging stock market	$ 5,746,696	$ 6,533,941	$ 5,905,160
Unlisted (over-the-counter) stocks	2,455,223	2,411,134	2,146,805
Foreign investments
Unlisted (over-the-counter) stocks	81,698	78,501	36,314
	$ 8,283,617	$ 9,053,576	$ 8,088,279

These investments in equity instruments are held for medium to long-term strategic purposes. Refer to Table 11 for the details of the investments. Accordingly, the management elected to designate these investments in equity instruments as at FVTOCI as they believe that recognizing short-term fluctuations in these investments' fair value in profit or loss would not be consistent with the Group's strategy of holding these investments for long-term purposes.

From January 1 to March 31, 2024, the Group sold part of its domestic investments at a fair value of $928,437 thousand in order to manage credit concentration risk. The unrealized valuation gain of $147,449 thousand on financial assets at FVTOCI was transferred to retained earnings on financial assets at FVTOCI was transferred to retained earnings.

Refer to Note 41 for information relating to investments in equity instruments at FVTOCI pledged as security.

(2) Investments in debt instruments at FVTOCI

	March 31, 2024	December 31, 2023	March 31, 2023
Current
Domestic investments
Corporate bonds	$ 2,347,222	$ 2,142,493	$ 1,878,494
Government bonds	1,706,258	995,450	333,414
Financial debentures	969,803	92,441	91,425
	$ 5,023,283	$ 3,230,384	$ 2,303,333

a. The Consolidated Company recognized asset impairment losses of $396 thousand and $1 thousand for the years ended January 1, 2024 and March 31, 2023, respectively, after evaluating the expected credit losses on debt instruments measured at FVTOCI.
b. Refer to Note 45 for information relating to the credit risk management and impairment assessment.

FINANCIAL ASSETS AT AMORTIZED COST

	March 31, 2024	December 31, 2023	March 31, 2023
Current
Domestic investments
Time deposits with original maturities of more than 3 months (a)	$ 1,978,942	$ 1,083,615	$ 937,374
Non-current
Domestic investments
Government bonds (b)	$ 4,863,730	$ 4,869,612	$ 4,450,573
Corporate bonds (b)	5,996,936	6,143,234	6,232,558
Bank debentures (b)	2,441,705	2,474,946	2,571,587
Investment in bills (b)	5,010,000	5,160,000	4,530,000
Sub-total	18,312,371	18,647,792	17,784,718
Less: Allowance for impairment loss	( 4,013 )	( 4,427 )	( 4,591 )
	$ 18,308,358	$ 18,643,365	$ 17,780,127

(1) The interest rates for time deposits with original maturities of more than 3 months were 0.55%-5.42%, 0.55%-5.42% and 0.3%-5.10% per annum as of March 31, 2024, December 31, 2023 and March 31, 2023, respectively.
(2) The investments in debt instruments at amortized cost under repurchase agreements as of March 31, 2024, December 31, 2023 and March 31, 2024 amounted to $2,552,670 thousand, $3,326,615 thousand and $2,765,448 thousand, respectively.
(3) Refer to Note 41 for information relating to the above-mentioned investments in debt instruments at amortized cost as of March 31, 2024, December 31, 2023 and March 31, 2023.
(4) After assessing the expected credit losses of debt instruments measured at amortized cost for 2024 and January 1 to March 31, 2023, the Group recognized Reversal of impairment loss recognized in profit or loss 442 thousand and 67 thousand, respectively.

(5) Refer to Note 45 for information relating to their credit risk management and impairment.
(6) Refer to Note 41 for information relating to investments in financial assets at amortized cost pledged as security.

11. BILLS AND BONDS PURCHASED UNDER RESALE AGREEMENTS / NOTES AND BONDS ISSUED UNDER REPURCHASE AGREEMENT

Bills and bonds purchased under resale agreements	March 31, 2024	December 31, 2023	March 31, 2023
Notional amount	$ 3,192,130	$ 2,296,769	$ 2,842,929
Interest rate	1.55%	1.43% - 1.45%	1.36% - 1.37%
Agreed resale price	$ 3,193,539	$ 2,297,429	$ 2,844,167
Notes and bonds issued under repurchase agreement	March 31, 2024	December 31, 2023	March 31, 2023
Notional amount	$ 2,552,670	$ 3,315,758	$ 2,723,850
Interest rate	1.57% - 1.63%	1.23% - 6.00%	1.39% - 1.53%
Agreed repurchase price	$ 2,555,701	$ 3,319,740	$ 2,728,824

12. NOTES RECEIVABLE, ACCOUNTS RECEIVABLES AND OTHER RECEIVABLES

	March 31, 2024	December 31, 2023	March 31, 2023
Notes receivable
At amortized cost
Gross carrying amount	$ 2,759,289	$ 2,423,642	$ 2,947,086
Less: Allowance for impairment loss	-	-	-
	$ 2,759,289	$ 2,423,642	$ 2,947,086
Accounts receivables
At amortized cost
Gross carrying amount	$ 19,750,476	$ 17,126,793	$ 15,121,575
Less: Allowance for impairment loss	( 213,631 )	( 212,335 )	( 188,992 )
	$ 19,536,845	$ 16,914,458	$ 14,932,583
Other receivables
Loan receivables - fixed rate	$ -	$ -	$ 7,800
Others	792,904	632,804	484,474
	$ 792,904	$ 632,804	$ 492,274

(1) Receivable

Credit periods are typically provided in the Group's sales agreements. Before accepting any new customer, the Group assesses the potential customer's credit quality and defines its credit limits. Credit limits and scores attributed to customers are reviewed regularly.

In order to minimize credit risk, the management of the Group has delegated a team responsible for determining credit limits, credit approvals and Other monitoring procedures to ensure that follow-up action is taken to recover overdue debts. In addition, the Group reviews the recoverable amount of receivables on a case-by-case basis at the balance sheet date to ensure that appropriate impairment losses have been recognized for uncollectible

receivables. In this regard, the management believes the Group's credit risk was significantly reduced.

The Group measures the loss allowance for accounts receivable at an amount equal to lifetime ECLs. The expected credit losses on accounts receivables are estimated using a provision matrix by reference to the past default experience of the debtor and an analysis of the debtor's current financial position, adjusted for general economic conditions of the industry in which the debtors operate and an assessment of both the current as well as the forecast direction of economic conditions at the reporting date.

The Group writes off a accounts receivable when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery, e.g. when the debtor has been placed under liquidation, or when the accounts receivables are past due. The Group continues to engage in enforcement activity to attempt to recover the receivables due. Where recoveries are made, these are recognized in profit or loss.

The following table details the loss allowance of accounts receivable based on the Group's credit classification matrix.

March 31, 2024

	Credit Classification Category A	Credit Classification Category B	Credit Classification Category C	Credit Classification Category D	Credit Classification Category E	Total
Expected Credit Loss Rate	0% - 2%	4%	15%	50%	100%
Gross carrying amount	$2,783,260	$645,756	$650	$-	$-	$3,429,666
Loss allowance (Lifetime ECLs)	(44,917)	(25,830)	(98)	$-	$-	(70,845)
Amortized cost	$2,738,343	$619,926	$552	$-	$-	$3,358,821

December 31, 2023

	Credit Classification Category A	Credit Classification Category B	Credit Classification Category C	Credit Classification Category D	Credit Classification Category E	Total
Expected Credit Loss Rate	0% - 2%	4%	15%	50%	100%
Gross carrying amount	$2,185,480	$780,460	$2,852	$-	$-	$2,968,792
Loss allowance (Lifetime ECLs)	(37,337)	(31,218)	(428)	$-	$-	(68,983)
Amortized cost	$2,148,143	$749,242	$2,424	$-	$-	$2,899,809

March 31, 2023

	Credit Classification Category A	Credit Classification Category B	Credit Classification Category C	Credit Classification Category D	Credit Classification Category E	Total
Expected Credit Loss Rate	0% - 2%	4%	15%	50%	100%
Gross carrying amount	$2,489,297	$613,261	$4,013	$-	$-	$3,106,571
Loss allowance (Lifetime ECLs)	(44,736)	(24,530)	(602)	$-	$-	(69,868)
Amortized cost	$2,444,561	$588,731	$3,411	$-	$-	$3,036,703

The aging of receivables under accounts receivable was as follows:

	March 31, 2024	December 31, 2023	March 31, 2023
Not Past Due	$ 2,820,513	$ 2,435,654	$ 2,616,606
Past due 1-90 days	586,047	516,197	462,187
Past due 91-180 days	22,684	15,333	27,646
Past due 181-360 days	422	1,608	132
Past due over 360 days (Note)	-	-	-
Total	$ 3,429,666	$ 2,968,792	$ 3,106,571

Note: The above aging schedule was based on the number of past due days from the end of the credit term.

The following table details the loss allowance of accounts receivable based on the Group's aging provision matrix.

March 31, 2024

	Up to 60 Days	61 to 120 Days	Over 120 Days	Total
Expected Credit Loss Rate	0% - 100%	0% - 100%	100%
Gross carrying amount	$ 8,026,362	$ -	$ 8,231	$ 8,034,593
Loss allowance (Lifetime ECLs)	( 26,782 )	-	( 8,231 )	( 35,013 )
Amortized cost	$ 7,999,580	$ -	$ -	$ 7,999,580

December 31, 2023

	Up to 60 Days	61 to 120 Days	Over 120 Days	Total
Expected Credit Loss Rate	0% - 100%	0% - 100%	100%
Gross carrying amount	$ 5,862,925	$ -	$ 8,231	$ 5,871,156
Loss allowance (Lifetime ECLs)	( 26,781 )	-	( 8,231 )	( 35,012 )
Amortized cost	$ 5,836,144	$ -	$ -	$ 5,836,144

March 31, 2023

	Up to 60 Days	61 to 120 Days	Over 120 Days	Total
Expected Credit Loss Rate	0% - 52.71%	0% - 100%	100%
Gross carrying amount	$ 4,576,998	$ 314	$ 8,231	$ 4,585,543
Loss allowance (Lifetime ECLs)	( 26,467 )	( 314 )	( 8,231 )	( 35,012 )
Amortized cost	$ 4,550,531	$ -	$ -	$ 4,550,531

The following table details the loss allowance of current and non-current accounts receivable based on the Group's provision matrix.

March 31, 2024

1. General case

	Not Past Due	1 to 30 Days Past Due	31 to 60 Days Past Due	Over 61 Days Past Due	Total
Expected Credit Loss Rate	0% - 1.078%	0.61% - 11.59%	2.51% - 100%	100%
Gross carrying amount	$ 17,263,785	$ 222,819	$ 40,142	$ 345	$ 17,527,091
Loss allowance (Lifetime ECLs)	( 142,159 )	( 1,625 )	( 2,254 )	( 345 )	( 146,383 )
Amortized cost	$ 17,121,626	$ 221,194	$ 37,888	$ -	$ 17,380,708

2. Redemption case

	Not Past Due 1 Year	1 to 2 Years Past Due	2 to 3 Years Past Due	3 to 4 Years Past Due	4 to 5 Years Past Due	Total
Expected Credit Loss Rate	0% - 53.89%	53.17% - 70.54%	70.03% - 82.68%	81.93% - 91.97%	100%
Gross carrying amount	$ 84,392	$ 56,150	$ 35,852	$ 41,707	$ 169,281	$ 387,382
Loss allowance (Lifetime ECLs)	( 45,765 )	( 39,938 )	( 29,576 )	( 38,265 )	( 169,281 )	( 322,825 )
Amortized cost	$ 38,627	$ 16,212	$ 6,276	$ 3,442	$ -	$ 64,557

December 31, 2023

General case

	Not Past Due	1 to 30 Days Past Due	31 to 60 Days Past Due	Over 61 Days Past Due	Total
Expected Credit Loss Rate	0% - 1.078%	0.61% - 11.59%	2.51% - 100%	100%
Gross carrying amount	$ 17,243,832	$ 216,730	$ 27,151	$ 110	$ 17,487,823
Loss allowance (Lifetime ECLs)	( 148,564 )	( 1,631 )	( 1,683 )	110	( 151,988 )
Amortized cost	$ 17,095,268	$ 215,099	$ 25,468	$ -	$ 17,335,835

Redemption case

	Not Past Due 1 Year	1 to 2 Years Past Due	2 to 3 Years Past Due	3 to 4 Years Past Due	4 to 5 Years Past Due	Total
Expected Credit Loss Rate	0% - 56.90%	53.86% - 73.44%	70.86% - 82.54%	82.49% - 91.90%	100%
Gross carrying amount	$ 77,514	$ 52,285	$ 40,478	$ 39,550	$ 160,197	$ 370,024
Loss allowance (Lifetime ECLs)	( 42,060 )	( 37,175 )	( 33,393 )	( 36,286 )	( 160,197 )	( 309,111 )
Amortized cost	$ 35,454	$ 15,110	$ 7,085	$ 3,264	$ -	$ 60,913

March 31, 2023

General case

	Not Past Due	1 to 30 Days Past Due	31 to 60 Days Past Due	Over 61 Days Past Due	Total
Expected Credit Loss Rate	0% - 1.19%	0.74% - 15.45%	1.57% - 100%	100%
Gross carrying amount	$ 14,192,496	$ 158,517	$ 24,297	$ 1,385	$ 14,376,695
Loss allowance (Lifetime ECLs)	( 144,619 )	( 1,316 )	( 1,651 )	( 1,385 )	( 148,971 )
Amortized cost	$ 14,047,877	$ 157,201	$ 22,646	$ -	$ 14,227,724

Redemption case

	Not Past Due 1 Year	1 to 2 Years Past Due	2 to 3 Years Past Due	3 to 4 Years Past Due	4 to 5 Years Past Due	Total
Expected Credit Loss Rate	0% - 53.89%	53.17% - 70.54%	70.03% - 82.68%	81.93% - 91.97%	100%
Gross carrying amount	$ 70,585	$ 40,010	$ 45,295	$ 41,126	$ 137,195	$ 334,211
Loss allowance (Lifetime ECLs)	( 37,579 )	( 28,199 )	( 37,400 )	( 37,683 )	( 137,195 )	( 278,056 )
Amortized cost	$ 33,006	$ 11,811	$ 7,895	$ 3,443	$ -	$ 56,155

The movements of the loss allowance of current and non-current accounts receivables as follows:

	January 1, 2024 to 31 March	January 1, 2023 to 31 March
Equity at January 1	$565,095	$519,423
Add: Impairment loss	10,279	12,443
Foreign exchange differences	( 308 )	41
Ending Balance	$575,066	$531,907

(2) Other receivables - loans receivable

The interest rate exposure and contractual maturity date of the Group’s fixed-rate loans receivable are as follows:

	March 31, 2024	December 31, 2023	March 31, 2023
Loans receivable with fixed interest rate
Not later than one year	$ -	$ -	$ 7,800

The ranges of effective interest rates of the Group’s loan receivables were as follows:

	March 31, 2024	December 31, 2023	March 31, 2023
Loans receivable with fixed interest rate	-	-	5%

INVENTORIES

	March 31, 2024	December 31, 2023	March 31, 2023
Finished goods	$ 3,044,943	$ 3,122,113	$ 3,028,440
Work in progress	515,120	564,772	517,241
Materials	1,748,518	1,622,216	2,065,461
Semi-finished goods	189,467	223,301	142,520
Inventory in transit	906	9,388	40,314
Construction in progress	491,336	492,248	478,643
	$ 5,990,290	$ 6,034,038	$ 6,272,619

The cost of goods sold related to inventories amounted to $8,421,168 thousand and $7,300,346 thousand for the years ended January 1, 2024 and March 31, 2023, respectively. The cost of goods sold included the loss on a decline in the value of inventories (reversal of gain) of $(3,571) thousand and $8,371 thousand.

DISCOUNTS AND LOANS,

	March 31, 2024	December 31, 2023	March 31, 2023
Secured overdrafts	$ 2,065,118	$ 2,029,501	$ 1,818,442
Short-term loans	721,956	574,438	1,754,880
Short-term secured loans	2,800,473	2,651,915	2,544,031
Medium-term loans	2,227,724	2,125,533	1,709,355
Medium-term secured loans	35,309,032	35,386,993	35,106,948
Long-term loans	29,518	30,034	22,888
Long-term secured loans	12,228,972	12,671,406	13,267,679
Overdue receivables	29,159	39,335	67,089
	55,411,952	55,509,155	56,291,312
Premium adjustment	( 21,882 )	( 21,642 )	( 21,779 )
Less: Allowance for impairment loss	( 639,858 )	( 628,881 )	( 652,799 )
	$ 54,750,212	$ 54,858,632	$ 55,616,734

(1) As of March 31, 2024, December 31, 2023 and March 31, 2024, Taipei Star Bank’s loans with no interest accrual and Other’s credit balance were $29,159 thousand, $39,335 thousand and $67,089 thousand, respectively.

(2) Taipei Star Bank has no outstanding and immediate write-off of credit claims from January 1 to March 31, 2024 and 2023.

(3) Movements of allowance for bad debts of discounts and loans were as follows:

January 1 to March 31, 2024

	12-month expected Credit losses	Duration Expected credit losses	Lifetime expected credit losses (Non-purchased or Originated Credit-impaired Financial Assets)	Provision in accordance with International Financial Reporting Standards No. 9 Impairment	Difference of impairment loss under regulations	Total
Equity at January 1	$ 36,312	$ 4,821	$ 9,885	$ 51,018	$ 577,863	$ 628,881
Changes in financial instruments that have been identified at the beginning of the period:
- Transferred to lifetime expected credit losses	( 7 )	22	( 14 )	1	-	1
- Converted as financial assets with credit impairment Assets	( 5 )	( 28 )	7,468	7,435	-	7,435
- Converted as anticipated credit loss in 12 months	661	( 827 )	-	( 166 )	-	( 166 )
- Derecognition of Assets in the current period	( 6,055 )	( 23 )	( 1,358 )	( 7,436 )	-	( 7,436 )
New financial assets purchased or originated	5,532	496	-	6,028	-	6,028
Difference of impairment loss under regulations	-	-	-	-	11,101	11,101
Write-off bad debts	-	-	-	-	-	-
Recovery of written-off receivables	-	-	-	-	-	-
Change in exchange rate and Other	( 5,808 )	( 729 )	551	( 5,986 )	-	( 5,986 )
Ending Balance	$ 30,630	$ 3,732	$ 16,532	$ 50,894	$ 588,964	$ 639,858

January 1 to March 31, 2023

	12-month expected Credit losses	Duration Expected credit losses	Lifetime expected credit losses (Non-purchased or Originated Credit-impaired Financial Assets)	Provision in accordance with International Financial Reporting Standards No. 9 Impairment	Difference of impairment loss under regulations	Total
Equity at January 1	$ 41,715	$ 5,932	$ 16,699	$ 64,346	$ 600,065	$ 664,411
Changes in financial instruments that have been identified at the beginning of the period:
- Transferred to lifetime expected credit losses	( 29 )	80	-	51	-	51
- Converted as financial assets with credit impairment Assets	( 1 )	( 2 )	321	318	-	318
- Converted as anticipated credit loss in 12 months	7	( 27 )	( 95 )	( 115 )	-	( 115 )
- Derecognition of Assets in the current period	( 6,370 )	( 12 )	( 5,667 )	( 12,049 )	-	( 12,049 )
New financial assets purchased or originated	13,718	19	776	14,513	-	14,513
Difference of impairment loss under regulations	-	-	-	-	( 5,957 )	( 5,957 )
Write-off bad debts	-	-	-	-	-	-
Recovery of written-off receivables	-	-	-	-	-	-
Change in exchange rate and Other	( 7,441 )	( 801 )	( 131 )	( 8,373 )	-	( 8,373 )
Ending Balance	$ 41,599	$ 5,189	$ 11,903	$ 58,691	$ 594,108	$ 652,799

15. SUBSIDIARIES

(1) Subsidiaries included in the consolidated financial statements

The consolidated entities are listed as follows:

Name of investor	Name of Subsidiary	Main business activities	Ownership (%)			Remark
			2024 years March 31	2023 years December 31	2023 years March 31
Shinkong Synthetic Fibers Corporation	Pan Asian Plastics Corp.	Manufacturing and sales of polyester pellets and polyester preforms	100.00	100.00	100.00	1
Shinkong Synthetic Fibers Corporation	Hsinghong Investment Co., Ltd.	Investment in and construction of business and public housing	100.00	100.00	100.00	#
Shinkong Synthetic Fibers Corporation	Shinkong Engineering Co., Ltd.	Contracting for various projects such as air pollution prevention, piping engineering and machine installation	100.00	100.00	100.00	#
Shinkong Synthetic Fibers Corporation and Pan Asian Plastics	Shinpont Industry Inc.	Manufacturing of synthetic fibers, wholesale and retail sale of textiles	50.00	50.00	50.00	1, 2
Shinkong Synthetic Fibers Corporation	Shin Chiun Industrial Co., Ltd. (SEC)	Investment and related business	100.00	100.00	100.00	1
Shinkong Synthetic Fibers Corporation	MAXIMA PACIFIC LTD.	Investment	100.00	100.00	100.00	#
Shinkong Synthetic Fibers Corporation	SSFC INVESTMENT LTD.	Investment	100.00	100.00	100.00	#
Shinkong Synthetic Fibers Corporation, Shinkong Engineering and Shin Chiun Industrial Co., Ltd.	UBright Optronics Corp.	Precision chemical materials and mold manufacturing wholesale, etc.	59.31	59.64	59.71	2
Shinkong Synthetic Fibers Corporation	Shinkong Polyester Film Corp., Ltd.	Electronic parts and components manufacturing	100.00	100.00	100.00	1
Shinkong Synthetic Fibers Corporation	Shinkong International Securities Co., Ltd.	Consignment trading of securities and futures	77.73	77.73	77.73	#
Shinkong Synthetic Fibers Corporation	Pan Asian Plastics Industry Corp.	Manufacturing and sales of polyester pellets and polyester preforms	100.00	100.00	100.00	#
Shinkong Synthetic Fibers Corporation and Shin Chiun Industrial Co., Ltd.	Tac Bright Optronics Corp.	Precision chemical materials - synthetic resin and plastic manufacturing	59.06	59.06	59.06	1, 2
Shinkong Synthetic Fibers Corporation	Taipei Star Bank	Commercial bank	27.07	27.07	27.07	#
Shinkong Synthetic Fibers Corporation	Hsinshin Asset Management Co., Ltd. (HAM)	Housing and building development for sale and rental	100.00	100.00	100.00	1
Shinkong Synthetic Fibers Corporation	Shinkong International Leasing Corp.	Leasing of various businesses	100.00	100.00	100.00	#
Shinkong Synthetic Fibers Corporation	Shin Kong Technologies Corporation	Electronic Information Software Business	100.00	100.00	100.00	#
Shinkong Synthetic Fibers Corporation and Far Trust International Finance	Otobuy Co., Ltd.	Other machinery equipment manufacturing	100.00	100.00	100.00	#
Shinkong Synthetic Fibers Corporation	Shin Kong Application Materials Co., Ltd.	Other chemical materials manufacturing	73.33	73.33	73.33	#
Shinkong Synthetic Fibers Corporation	Shin Kong Fintech Co., Ltd. (SKF)	Information software service	100.00	100.00	100.00	#
Shinkong Synthetic Fibers Corporation and Shinkong International Leasing Corp.	Far Trust Consumer Finance Co., Ltd. (Far Trust)	Overdue receivables management service	51.03	51.03	51.03	1, 2
Shinkong Synthetic Fibers Corporation	Shinkong Youth Co., Ltd. (SKY)	Manufacture and sale of chemical fiber and plastic related products	100.00	100.00	100.00	1

(Continued on next page)

(Continued from the previous page)

Name of investor	Name of Subsidiary	Main business activities	Ownership (%)			Remark
			2024 years March 31	2023 years December 31	2023 years March 31
Shinkong Synthetic Fibers Corporation	SHINKONG VIETNAM LLC.	Manufacture and sale of chemical fiber and plastic related products	-	100.00	100.00	1, 6
Shinkong Synthetic Fibers Corporation	Thai Shinkong Industry Corporation Ltd. (TSI)	Manufacturing and sales of plastic, polyester film, and PET	62.04	62.04	62.04	1, 2
Shinkong Synthetic Fibers Corporation	Chi Teng Construction Co., Ltd. (CTC)	Residence and building development activities and renting and leasing of real estate	100.00	100.00	-	1, 4
Shinkong Synthetic Fibers Corporation	SHINKONG VIETNAM ENTERPRISE COMPANY LIMITED	Wholesale Trade	100.00	100.00	-	1, 5
SSFC	Dayspring Ltd.	Investment	100.00	100.00	100.00	1
SSFC	Shinkong Applied Materials (Jiangsu) Co., Ltd.	Sale of synthetic materials, fibers and manufacturing of plastic product	100.00	100.00	100.00	×
TacBright Optronics	MAXPRO LTD.	Investment	100.00	100.00	100.00	×
MAXPRO	LOFO HOLDING GmbH	Investment	100.00	100.00	100.00	×
Shinkong Synthetic Fibers Corporation	Chi Jian Human-Resource & Management Co., Ltd.	Human resources management consulting	100.00	100.00	100.00	×
Shinkong International Securities	Shin Kong Investment Consultant Co., Ltd.	Securities investment consulting	100.00	100.00	100.00	×
Shinkong International Securities	Shin Kong Insurance Agency Co., Ltd.	Life insurance agent	100.00	100.00	100.00	×
Shinkong International Securities	Shin Kong Property Insurance Agency Co., Ltd.	Property insurance agent	100.00	100.00	100.00	×
Pan Asian Plastics	Hsin Lung Chemical Co., Ltd. (HLC)	Manufacturing of resin and plastic, and wholesale and retail of related products	93.80	93.80	93.80	×
Shin Chiun Industrial Co., Ltd.	Intelligent Medical Big Data Co., Ltd.	Consulting, biotechnology research and development services	83.33	83.33	83.33	×
Shinkong Technologies Corporation	Shin Kong Innovations Co., Ltd.	Electronic Information Software Business	66.67	66.67	66.67	×
Far Trust International Finance	Far Trust International Leasing Co., Ltd. (Far Trust Leasing)	Overdue receivables management service	100.00	100.00	100.00	×
Far Trust International Finance	Far Trust Car Rental Co., Ltd. (Far Trust Car Rental)	Car Rental	100.00	100.00	100.00	×
Shin Kong International Leasing Corp.	Shinkong Power Technology Co., Ltd.	Solar industry business	85.00	85.00	70.00	×
Shin Kong International Leasing Corp.	Jin Liang Power Service Co., Ltd.	Solar industry business	89.63	89.63	70.00	×
Shin Kong International Leasing Corp.	Shinkong Energy Corporation	Solar industry business	100.00	100.00	100.00	×
Shinkong Energy	Co-creation Ingenuity Renewable Corp.	Solar industry business	100.00	100.00	-	1 · 3
UBright Optronics	Rise Concept Enterprises Limited	Investment	100.00	100.00	100.00	1
Rise Concept Enterprises	Suzhou UBright Optronics Corp.	Brightness Enhancement Film Cutting	100.00	100.00	100.00	×

Remarks:

a. It is a non-significant subsidiary, and its financial statements have not been reviewed by CPAs.
b. It is a subsidiary that has material non-controlling interests.
c. In June 2023, the Group acquired $100\%$ of the shares of Co-creation Ingenuity Renewable Corp.. Refer to Note 36 for information on business combinations.
d. In July 2023, the Group set up Chi Teng Construction Co., Ltd. with $100\%$ ownership interest.
e. In October 2023, the Group established SHINKONG VIETNAM ENTERPRISE COMPANY LIMITED with $100\%$ ownership interest.
f. SHINKONG VIETNAM LLC. was liquidated in February 2024.

(2) Details of subsidiaries that have material non-controlling interests

Name of Subsidiary	Shareholding and voting rights ratio of non-controlling interests
	March 31, 2024	December 31, 2023	March 31, 2023
Shinpont Industry Inc.	50.00%	50.00%	50.00%
UBright Optronics Corp.	40.69%	40.36%	40.29%
Tac Bright Optronics Corp.	40.94%	40.94%	40.94%
Taipei Star Bank	72.93%	72.93%	72.93%
Thai Shinkong Industry Corporation Ltd. (TSI)	37.96%	37.96%	37.96%
Far Trust Consumer Finance Co., Ltd. (Far Trust)	48.97%	48.97%	48.97%

See Table 5 for the information on places of incorporation and principal places of business.

Name of Subsidiary	Profit (Loss) Allocated to Non-controlling Interests		Non-controlling interests
	January 1, 2024 to 31 March	January 1, 2023 to 31 March	March 31, 2024	December 31, 2023	March 31, 2023
Tac Bright Optronics Corp.	($ 3,351)	($ 23,469)	$ 948,890	$ 952,232	$1,048,624
UBright Optronics Corp.	64,557	4,048	1,367,703	1,388,076	1,257,497
Shinpont Industry Inc.	40,283	30,550	550,855	510,572	558,656
Taipei Star Bank	23,326	19,461	4,232,149	4,215,478	4,212,537
Thai Shinkong Industry Corporation Ltd.	(30,926)	18,371	1,424,709	1,484,674	1,622,692
Far Trust Consumer Finance Co., Ltd. (Far Trust)	6,037	8,994	630,174	624,136	626,637
Others	68,130	47,123	1,387,728	1,318,828	1,306,756
	$ 168,056	$ 105,078	$10,542,208	$10,493,996	$10,633,399

The summarized financial information below represents amounts before intragroup eliminations.

TacBright Optronics and its subsidiaries

	March 31, 2024	December 31, 2023	March 31, 2023
Current assets	$ 658,951	$ 634,863	$ 768,548
Non-current assets	2,916,232	3,006,101	3,241,912
Current liabilities	( 727,352 )	( 788,278 )	( 956,397 )
Non-current liabilities	( 613,202 )	( 609,894 )	( 670,208 )
Equity	$ 2,234,629	$ 2,242,792	$ 2,383,855
Equity attributable to:
Owners of the Company	$ 1,285,739	$ 1,290,560	$ 1,335,231
Non-controlling interests	948,890	952,232	1,048,624
	$ 2,234,629	$ 2,242,792	$ 2,383,855

-28-

	January 1, 2024 to 31 March	January 1, 2023 to 31 March
Operating revenue	$ 350,103	$ 258,447
Net loss	($ 8,186)	($ 57,325)
Other comprehensive income	22	-
Total comprehensive income	($ 8,164)	($ 57,325)
Loss attributable to:
Owners of the Company	($ 4,835)	($ 33,856)
Non-controlling interests	( 3,351)	( 23,469)
	($ 8,186)	($ 57,325)
Total comprehensive income attributable to:
Owners of the Company	($ 4,822)	($ 33,856)
Non-controlling interests	( 3,342)	( 23,469)
	($ 8,164)	($ 57,325)
Cash flow
Operating activities	$ 60,410	$ 40,886
Investing activities	( 17,126)	( 9,471)
Financing activities	( 41,175)	34,186
Net cash inflow	$ 2,109	$ 65,601

UBright Optronics and its subsidiaries

	March 31, 2024	December 31, 2023	March 31, 2023
Current assets	$ 3,563,760	$ 3,464,612	$ 3,260,209
Non-current assets	870,791	884,009	971,815
Current liabilities	( 830,174)	( 673,943)	( 846,979)
Non-current liabilities	( 309,239)	( 300,505)	( 319,500)
Equity	$ 3,295,138	$ 3,374,173	$ 3,065,545
Equity attributable to:
Owners of the Company	$ 1,927,435	$ 1,986,097	$ 1,808,048
UBright Optronics Corp.’s Non-controlling interests	1,367,703	1,388,076	1,257,497
	$ 3,295,138	$ 3,374,173	$ 3,065,545

	January 1, 2024to 31 March	January 1, 2023to 31 March
Operating revenue	$ 611,238	$ 442,766
Net profit for the year	$ 158,536	$ 9,169
Other comprehensive income	( 5,561 )	( 1,303 )
Total comprehensive income	$ 152,975	$ 7,866
Profit attributable to:
Owners of the Company	$ 93,979	$ 5,121
UBright Optronics Corp.’s non-controlling interests	64,557	4,048
	$ 158,536	$ 9,169
Total comprehensive income attributable to:
Owners of the Company	$ 90,680	$ 4,342
UBright Optronics Corp.’s non-controlling interests	62,295	3,524
	$ 152,975	$ 7,866
Cash flow
Operating activities	$ 121,881	$ 156,867
Investing activities	( 681,968 )	( 419,393 )
Financing activities	3,617	( 4,530 )
Net cash outflow	( $ 556,470 )	( $ 267,056 )

Shinpont Industry Inc.

	March 31, 2024	December 31, 2023	March 31, 2023
Current assets	$ 1,033,752	$ 993,947	$ 1,033,375
Non-current assets	214,288	227,531	254,599
Current liabilities	( 106,409 )	( 154,775 )	( 105,324 )
Non-current liabilities	( 39,921 )	( 45,559 )	( 65,338 )
Equity	$ 1,101,710	$ 1,021,144	$ 1,117,312
Equity attributable to:
Owners of the Company	$ 550,855	$ 510,572	$ 558,656
Non-controlling interests	550,855	510,572	558,656
	$ 1,101,710	$ 1,021,144	$ 1,117,312

	January 1, 2024to 31 March	January 1, 2023to 31 March
Operating revenue	$ 259,075	$ 286,578
Net profit for the year	$ 80,566	$ 61,100
Other comprehensive income	-	-
Total comprehensive income	$ 80,566	$ 61,100
Profit attributable to:
Owners of the Company	$ 40,283	$ 30,550
Non-controlling interests	40,283	30,550
	$ 80,566	$ 61,100
Total comprehensive income attributable to:
Owners of the Company	$ 40,283	$ 30,550
Non-controlling interests	40,283	30,550
	$ 80,566	$ 61,100
Cash flow
Operating activities	$ 546,282	$ 64,594
Investing activities	( 102,207 )	52,383
Financing activities	( 335,568 )	( 5,629 )
Net cash inflow	$ 108,507	$ 111,348

Taipei Star Bank

	March 31, 2024	December 31, 2023	March 31, 2023
Current assets	$ 88,605,707	$ 87,484,143	$ 85,168,143
Non-current assets	2,088,331	2,101,114	2,151,734
Current liabilities	( 83,141,648 )	( 81,929,315 )	( 79,405,859 )
Non-current liabilities	( 1,743,949 )	( 1,870,358 )	( 2,132,466 )
Equity	$ 5,808,441	$ 5,785,584	$ 5,781,552
Equity attributable to:
Owners of the Company	$ 1,576,292	$ 1,570,106	$ 1,569,015
Non-controlling interests	4,232,149	4,215,478	4,212,537
	$ 5,808,441	$ 5,785,584	$ 5,781,552

	January 1, 2024to 31 March	January 1, 2023to 31 March
Operating revenue	$ 496,024	$ 445,929
Net profit for the year	$ 31,982	$ 26,684
Other comprehensive income	15,218	23,473
Total comprehensive income	$ 47,200	$ 50,157
Profit attributable to:
Owners of the Company	$ 8,656	$ 7,223
Non-controlling interests	23,326	19,461
	$ 31,982	$ 26,684
Total comprehensive income attributable to:
Owners of the Company	$ 28,283	$ 13,575
Non-controlling interests	18,917	36,582
	$ 47,200	$ 50,157
Cash flow
Operating activities	$ 956,190	($ 1,761,470)
Investing activities	( 1,409,479 )	648,147
Financing activities	( 7,409 )	( 7,230 )
Net cash outflow	($ 460,698 )	($ 1,120,553 )

TSI

	March 31, 2024	December 31, 2023	March 31, 2023
Current assets	$ 2,745,387	$ 2,574,622	$ 1,945,590
Non-current assets	3,908,276	3,978,029	3,737,887
Current liabilities	( 2,106,513 )	( 1,960,886 )	( 790,650 )
Non-current liabilities	( 793,966 )	( 680,612 )	( 618,086 )
Equity	$ 3,753,184	$ 3,911,153	$ 4,274,741
Equity attributable to:
Owners of the Company	$ 2,328,475	$ 2,426,479	$ 2,652,049
Non-controlling interests	1,424,709	1,484,674	1,622,692
	$ 3,753,184	$ 3,911,153	$ 4,274,741

	January 1, 2024to 31 March	January 1, 2023to 31 March
Operating revenue	$ 2,046,018	$ 1,457,388
Net (loss) income	($ 81,471)	$ 48,396
Other comprehensive income	-	-
Total comprehensive income	($ 81,471)	$ 48,396
(Loss) profit attributable to:
Owners of the Company	($ 50,545)	$ 30,025
Non-controlling interests	( 30,926)	18,371
	($ 81,471)	$ 48,396
Total comprehensive income attributable to:
Owners of the Company	($ 50,545)	$ 30,025
Non-controlling interests	( 30,926)	18,371
	($ 81,471)	$ 48,396
Cash flow
Operating activities	$ 816,643	$ 896,834
Investing activities	( 197,235)	( 910,974)
Financing activities	( 298,534)	91,335
Net cash inflow	$ 320,874	$ 77,195

Far Trust Consumer Finance and its subsidiaries

	March 31, 2024	December 31, 2023	March 31, 2023
Current assets	$ 8,142,826	$ 7,945,557	$ 7,415,447
Non-current assets	4,754,417	4,851,791	4,415,618
Current liabilities	( 7,169,353)	( 7,013,605)	( 6,592,639)
Non-current liabilities	( 4,445,712)	( 4,513,894)	( 3,963,470)
Equity	$ 1,282,178	$ 1,269,849	$ 1,274,956
Equity attributable to:
Owners of the Company	$ 652,004	$ 645,713	$ 648,319
Non-controlling interests	630,174	624,136	626,637
	$ 1,282,178	$ 1,269,849	$ 1,274,956

	January 1, 2024 to 31 March	January 1, 2023 to 31 March
Operating revenue	$ 157,112	$ 150,292
Net profit for the year	$ 12,328	$ 18,365
Other comprehensive income	-	-
Total comprehensive income	$ 12,328	$ 18,365
Profit attributable to:
Owners of the Company	$ 6,291	$ 9,371
Non-controlling interests	6,037	8,994
	$ 12,328	$ 18,365
Total comprehensive income attributable to:
Owners of the Company	$ 6,291	$ 9,371
Non-controlling interests	6,037	8,994
	$ 12,328	$ 18,365
Cash flow
Operating activities	($ 34,850)	$ 462,170
Investing activities	( 6)	( 50,102)
Financing activities	182,511	( 340,457)
Net cash inflow	$ 147,655	$ 71,611

16. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

Investments in associates

	March 31, 2024	December 31, 2023	March 31, 2023
Unlisted companies
Tai Jin Investment Co., Ltd.	$ 7,161	$ 7,183	$ 7,049
Tai Shin Leasing & Financial Co., Ltd.	1,687,915	1,708,426	1,362,043
Da Chun Universe Investment Co., Ltd.	4,802	4,754	3,949
Topbottle Resources Technology Corporation	17,263	17,583	23,099
Ecofun Lab Corporation	8,897	8,897	10,554
Shinsol Advanced Chemical Corporation	331,480	332,656	219,102
	$ 2,057,518	$ 2,079,499	$ 1,625,796

At the end of the reporting period, the Group's ownership and percentage of voting rights in Equity were as follows:

Company	March 31, 2024	December 31, 2023	March 31, 2023
Tai Jin Investment Co., Ltd.	48.57%	48.57%	48.57%
Tai Shin Leasing & Financial Co., Ltd.	30.00%	30.00%	30.00%
Da Chun Universe Investment Co., Ltd.	45.00%	45.00%	45.00%
Topbottle Resources Technology Corporation	20.00%	20.00%	20.00%
Ecofun Lab Corporation	33.33%	33.33%	33.33%
Shinsol Advanced Chemical Corporation (Note)	43.63%	43.63%	49.00%

Remarks:
a. In April 2023, the Group subscribed for additional new shares of Shinsol Advanced Chemical Corporation for $128,588 thousand in cash at a percentage different from its existing ownership percentage, decreasing its continuing interest from 49.00% to 43.63%.

Refer to Table 5 "Information on Investees" for the nature of activities, principal places of business and countries of incorporation of the associates.

The summarized financial information in respect of the Group's associates is as follows:

	January 1, 2024 to 31 March	January 1, 2023 to 31 March
The Group’s share of:
Net loss	($ 11,663)	($ 16,454)
Other comprehensive income	( 12,658)	204,303
Total comprehensive income	($ 24,321)	$ 187,849

The Group's share of unrealized gain on disposal of investments accounted for under other comprehensive income fair value equity or loss transferred to retained earnings was $115 thousand and $81 thousand for the years ended January 1, 2024 and March 31, 2023, respectively.

The share of profits and losses of associates and Equity and Other comprehensive income for the period from January 1 to March 31, 2024 and 2023 are calculated based on financial reports that have not been reviewed by CPAs. However, the management of the Consolidated Company believes that the financial statements of the above-mentioned investee companies will not be materially adjusted if they are audited by CPAs.

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17. PROPERTY, PLANT AND EQUIPMENT

	March 31, 2024	December 31, 2023	March 31, 2023
Self-use	$ 22,136,531	$ 22,222,206	$ 20,431,795
Operating lease	39,252	38,338	36,503
	$ 22,175,783	$ 22,260,544	$ 20,468,298

(1) Self-use

	Freehold land	Buildings	Machinery equipment	construction in progress Real estate	Transportation Equipment	Miscellaneous equipment	Office equipment	Total
Cost
Balance at January 1, 2024	$ 8,060,509	$10,363,931	$34,853,726	$ 848,504	$ 268,826	$ 494,231	$ 303,291	$55,193,018
Additions	760	17,462	163,131	250,408	961	745	8,844	442,311
Disposals	-	-	(4,211)	-	(1,231)	-	(1,725)	(7,167)
Net exchange differences	-	(45,752)	(61,773)	-	(336)	(1,825)	(1,085)	(110,771)
Transferred from investment properties	208	84	-	-	-	-	-	292
Reclassified	(540)	498	208,455	(210,652)	167	2,811	110	849
Balance at March 31, 2024	$ 8,060,937	$10,336,223	$35,159,328	$ 888,260	$ 268,387	$ 495,962	$ 309,435	$55,518,532
Accumulated depreciation and impairment
Balance at January 1, 2024	$ -	$ 5,584,110	$26,634,287	$ -	$ 206,990	$ 337,391	$ 208,034	$32,970,812
Disposals	-	-	(3,438)	-	(1,231)	-	(1,725)	(6,394)
Impairment losses	-	824	-	-	-	-	-	824
Depreciation expenses	-	79,529	359,230	-	6,334	6,000	10,132	461,225
Transferred from investment properties	-	21	-	-	-	-	-	21
Net exchange differences	-	(7,183)	(34,610)	-	(212)	(1,788)	(694)	(44,487)
Balance at March 31, 2024	$ -	$ 5,657,301	$26,955,469	$ -	$ 211,881	$ 341,603	$ 215,747	$33,382,001
Carrying amount at March 31, 2024	$ 8,060,937	$ 4,678,922	$8,203,859	$ 888,260	$ 56,506	$ 154,359	$ 93,688	$22,136,531
December 31, 2023 and Carrying amount at January 1, 2024	$ 8,060,509	$ 4,779,821	$8,219,459	$ 848,504	$ 61,836	$ 156,840	$ 95,257	$22,222,206
Cost
Balance at January 1, 2023	$ 7,948,093	$ 8,253,281	$33,496,824	$ 994,767	$ 253,067	$ 483,922	$ 267,848	$51,697,802
Additions	108,742	7,535	35,173	358,354	1,395	177	7,855	519,231
Disposals	-	-	(5,306)	(1,026)	-	-	(596)	(6,928)
Net exchange differences	-	1,181	13,558	(1,743)	62	329	156	13,543
Reclassified	-	52,393	(641,735)	580,899	1,192	(10,607)	-	(17,858)
Balance at March 31, 2023	$ 8,056,835	$ 8,314,390	$32,898,514	$ 1,931,251	$ 255,716	$ 473,821	$ 275,263	$52,205,790
Accumulated depreciation and impairment
Balance at January 1, 2023	$ -	$ 5,300,364	$25,389,870	$ -	$ 182,636	$ 313,098	$ 172,928	$31,358,896
Disposals	-	-	(4,844)	-	-	-	(596)	(5,440)
Impairment losses	-	824	-	-	-	-	-	824
Depreciation expenses	-	55,611	334,911	-	6,557	6,184	8,828	412,091
Net exchange differences	-	1,110	6,050	-	44	309	111	7,624
Balance at March 31, 2023	$ -	$ 5,357,909	$25,725,987	$ -	$ 189,237	$ 319,591	$ 181,271	$31,773,995
Carrying amount at March 31, 2023	$ 8,056,835	$ 2,956,481	$7,172,527	$ 1,931,251	$ 66,479	$ 154,230	$ 93,992	$20,431,795

Property, plant and equipment are depreciated on a straight-line basis over the following estimated useful lives as follows :

Buildings	3-55 years
Machinery equipment	2-20 years
Transportation Equipment	2-7 years
Office equipment	3-18 years
Other equipment	3-15 years

The amounts of Property, plant and equipment pledged as collateral for bank borrowings are set out in Note 41.

The Consolidated Company recognized an impairment loss of $824 thousand and $824 thousand for the periods from January 1, 2024 and March 31, 2023, respectively, due to fluctuations in the prices of raw materials for its products and downward revisions in the

selling prices and demand expectations in the global market, which resulted in a decrease in the expected future cash inflows of property, plant and equipment used in production and caused the recoverable amount of such property, plant and equipment to be less than the carrying amount. The Consolidated Company used the value-in-use as the recoverable amount, and the discount rates used were 8.3225% and 8.539%, respectively. The impairment loss was included in the consolidated statements of income under impairment loss..

	Transportation Equipment
Cost
Balance at January 1, 2024	$ 74,071
Additions	5,662
Disposals	( 1,375)
Balance at March 31, 2024	$ 78,358
Accumulated depreciation and impairment
Balance at January 1, 2024	$ 35,733
Depreciation expenses	4,055
Disposals	( 682)
Balance at March 31, 2024	$ 39,106
Carrying amount at March 31, 2024	$ 39,252
December 31, 2023 and Carrying amount at January 1, 2024	$ 38,338
Balance at January 1, 2023	$ 67,700
Additions	9,511
Disposals	( 7,103)
Balance at March 31, 2023	$ 70,108
Accumulated depreciation and impairment
Balance at January 1, 2023	$ 32,603
Depreciation expenses	3,717
Disposals	( 2,715)
Balance at March 31, 2023	$ 33,605
Carrying amount at March 31, 2023	$ 36,503

The Group leases transportation equipment under operating leases with lease terms of 1 to 3 years. The lessees do not have bargain purchase options to acquire the assets at the expiry of the lease periods.

Depreciation expense is calculated using the accelerated Depreciations method based on the following durable years:

Transportation Equipment

1-8 years

18. LEASE ARRANGEMENTS

(1) Right-of-use assets

	March 31, 2024	December 31, 2023	March 31, 2023
Carrying amount
Land	$ 3,018,702	$ 3,024,896	$ 3,096,293
Buildings	457,032	406,233	423,445
Machinery equipment	137,084	128,734	105,780
Transportation Equipment	1,700	1,921	806
Office equipment	6,528	6,832	8,341
	$ 3,621,046	$ 3,568,616	$ 3,634,665
	January 1, 2024 to 31 March	January 1, 2023 to 31 March
---	---	---
Additions to Assets	$ 117,585	$ 24,850
Depreciation expenses for right-of-use assets
Land	$ 24,415	$ 24,416
Buildings	22,153	17,469
Machinery equipment	3,046	2,312
Transportation Equipment	221	142
Office equipment	782	703
	$ 50,617	$ 45,042

Other than the additions and Depreciation expenses recognized above, the Group's right-of-use assets were not significantly subleased or impaired from January 1 to March 31, 2024 and 2023, respectively.

(2) Lease liabilities

	March 31, 2024	December 31, 2023	March 31, 2023
Carrying amount under Liabilities
Current	$ 451,575	$ 434,592	$ 413,859
Non-current	$ 1,803,764	$ 1,762,042	$ 1,786,544

Range of discount rate for lease Liabilities was as follows:

	March 31, 2024	December 31, 2023	March 31, 2023
Land	0.70% - 2.80%	0.70% - 2.80%	0.70% - 2.80%
Buildings	0.70% - 2.80%	0.70% - 2.80%	0.70% - 2.80%
Machinery equipment	0.70% - 2.80%	0.70% - 2.80%	0.70% - 2.80%
Transportation Equipment	0.70% - 4.00%	0.70% - 4.00%	0.70% - 2.80%
Office equipment	0.70% - 2.80%	0.70% - 2.80%	0.70% - 2.80%

(3) Material lease activities and terms (the Group is lessee)

The Group leases certain equipment for the use of operating activities with lease terms of 2 to 6 years.

The Group also leases land and buildings for the use of plants, offices and business locations with lease terms of 2 to 70 years. The Group does not have bargain purchase options to acquire the leasehold land and buildings at the end of the lease terms. In addition, the Group is prohibited from subleasing or transferring all or any portion of the underlying assets without the lessor's consent.

In 2014, the Group signed a surface right contract with the Northern Region Branch, National Property Administration, MOF to acquire the superficies right on the state-owned non-public land and paid a royalty of $1,234,568 thousand. The duration of the superficies right is 70 years. During the duration, the Group may construct buildings on the superficies' right subject in accordance with the purpose set out in the contract and the agreed use method.

On May 10, 2007, the Group leased a total of 52,033 square meters of land from the Industrial Development Bureau of the Ministry of Economic Affairs. The rent is calculated based on the price at the time the lease was signed. The annual rent rate is adjusted according to the announced land price of each county and city government, and the additional public construction expenses invested in each park are amortized and adjusted.

In 2022, the Group signed a contract with the Department of Economic Development, Taoyuan for the development of the Youth Entrepreneurship Village and Intelligent Manufacturing Park, obtained the superficies and also paid the royalty of $950,000 thousand. The duration of the superficies is 50 years, and during this time, the Group could construct buildings on the land under the terms of the contract.

(4) Other "Leases"

	January 1, 2024 to 31 March	January 1, 2023 to 31 March
Expenses relating to short-term leases	$ 6,068	$ 11,742
Expenses relating to low-value asset leases	$ 1,630	$ 2,396
Total cash outflow for leases	($ 65,713)	($ 79,185)

The Group's leases of certain assets qualify as short-term leases and low-value asset leases. The Group has elected to apply the recognition exemption and thus, did not recognize right-of-use assets and lease liabilities for these leases..

-38-

-39-

19. INVESTMENT PROPERTY

	Completed Investment property
Cost
Balance at January 1, 2024	$ 2,630,430
Transferred to Property, plant and equipment	( 292)
Balance at March 31, 2024	$ 2,630,138
Accumulated depreciation and impairment
Balance at January 1, 2024	( $261,479)
Depreciation expenses	( 5,567)
Transferred to Property, plant and equipment	21
Balance at March 31, 2024	($ 267,025)
Carrying amount at March 31, 2024	$ 2,363,113
December 31, 2023 and Carrying amount at January 1, 2024	$ 2,368,951
Cost
Balance at January 1, 2023	$ 2,630,430
Balance at March 31, 2023	$ 2,630,430
Accumulated depreciation and impairment
Balance at January 1, 2023	( $239,632)
Depreciation expenses	( 5,096)
Balance at March 31, 2023	($ 244,728)
Carrying amount at March 31, 2023	$ 2,385,702

The investment properties of the Group were depreciated on a straight-line basis over their estimated useful lives of 30 to 50 years.

The fair value of the Group's investment properties as of March 31, 2024, December 31, 2023 and March 31, 2023 was $3,445,670 thousand, $3,445,941 thousand and $3,215,800 thousand, respectively. Management of the Company used the valuation model that market participants would use in determining the fair value. The valuation was arrived at by reference to market evidence of transaction prices for similar properties.

All of the Group's investment properties are self-owned Equity. The investment properties pledged as collateral for bank borrowings are set out in Note 41.

-40-

20. GOODWILL

	January 1, 2024 to 31 March	January 1, 2023 to 31 March
Cost
Equity at January 1	$ 280,204	$ 280,204
Ending Balance	$ 280,204	$ 280,204

The Group did not recognize any impairment loss on goodwill for the years ended March 31, 2024 and 2023.

21. OTHER INTANGIBLE ASSETS

	January 1, 2024 to 31 March	January 1, 2023 to 31 March
Intangible assets
Equity at January 1	$ 145,342	$ 151,686
Acquired in the period	1,332	2,216
Amortization expenses	( 3,821)	( 3,349)
Net exchange differences	( 63)	( 26)
Ending Balance	$ 142,790	$ 150,527

Amortization expense is calculated on a straight-line basis over the following useful lives:

Electricity sales contract 20 years
Other intangible assets 1-10 Years

22. OPERATING DEPOSITS AND SETTLEMENT FUNDS

	March 31, 2024	December 31, 2023	March 31, 2023
Operating deposits	$ 226,500	$ 226,500	$ 226,500
Settlement funds	87,371	83,121	81,824
	$ 313,871	$ 309,621	$ 308,324

(1) Shinkong International Securities provides operating guarantee deposits in accordance with the following rules.

a. According to the Rules Governing Securities Firms, after the company registration, a securities firm shall deposit NT $40,000 thousand of cash, NT $10,000 thousand of securities firm dealer, and NT $50,000 thousand of securities firm to the designated bank as the operating bond. In addition, a deposit of NT $5,000 thousand should be provided for each new branch.

b. According to the Regulations Governing Margin Purchase and Short Sale of Securities by Securities Firms, securities firms that engage in margin trading and short selling shall provide a business bond of NT $50,000 thousand.

c. According to the Rules Governing Futures Commission Merchants", a business bond of NT $25,000 thousand should be deposited for each branch, and NT $5,000 thousand should be deposited for each branch.

(2) According to the Regulation Governing Deposit of Bond for Acquirement of Insurance by Insurance Agents, Insurance Brokers and Insurance Surveyors, the insurance agent should pay $1,500 thousand according to Operating revenue of the previous year.

(3) Shinkong International Securities Investment Consulting was established under the application of the ROC securities and investing trust association and investment consulting operating deposit regulations as a securities investment consultant, and an operating bond of NT $5,000 thousand should be provided.

(4) Shinkong International Securities deposits settlement and clearing funds according to the following rules

a. According to the Rules Governing Securities Firms, securities brokers should deposit a basic amount of 15,000 thousand NTD before commencing business. After starting operations, they should continue to deposit funds based on a certain percentage of the transaction amount of entrusted trading of listed securities within ten days after each quarter's end until the end of the current year. From the second year of operation, the original basic amount decreases to 3,500 thousand NTD. Additionally, by the end of January each year, any surplus remaining in the deposited funds should be withdrawn or redeposited with the Taiwan Stock Exchange, based on the previous year's entrusted trading of listed securities.

b. For each newly established branch, securities firms should deposit 3,000 thousand NTD with the Taiwan Stock Exchange before opening. However, from the second year of operation, the original amount decreases to 500 thousand NTD.

c. According to the Taipei Exchange Rules for Administration of the Joint Responsibility System Clearing and Settlement Fund, securities brokers should deposit NT $1,500 thousand into the payment settlement fund. Each branch office should deposit 250 thousand NTD, and proprietary traders engaged in self-trading of OTC securities at their business premises should deposit 2,000 thousand NTD. The deposited or withdrawn settlement funds are calculated based on a certain ratio of the previous year's entrusted trading and self-trading net receipts and payments.

d. According to the Taiwan Futures Exchange Co., Ltd. Criteria for clearing membership, before the settlement and clearing business is carried out by individual settlement members, the settlement and clearing members shall pay 20 percent of the special working capital to Funds according to their paid-in capital or the designated working capital. After one year of the settlement and clearing business, the cap amount of the settlement and clearing member Funds shall be reduced to NT $20,000 thousand and paid in accordance with the contribution method and amount set by the Taiwan Futures Exchange.

e. As of March 31, 2024, December 31, 2023 and March 31, 2024, Shinkong International Securities has paid $87,371 thousand, $83,121 thousand and $81,824 thousand, respectively, to Funds in accordance with the regulations.

-41-

-42-

23. OTHER ASSETS

	March 31, 2024	December 31, 2023	March 31, 2023
Current
Right to recover products	$ 27,679	$ 27,679	$ 29,054
Loans receivable from the securities department	6,533,379	6,510,121	5,328,636
Underwriting shares to collect from the securities department	507,413	17,088	90,050
Others	692,396	573,235	574,277
	$ 7,760,867	$ 7,128,123	$ 6,022,017
Non-current
Refundable deposits	$ 230,839	$ 175,547	$ 161,838
Overdue receivables	63,188	63,488	64,388
Loss allowance-overdue receivables	( 63,188)	( 63,488)	( 64,388)
Long-term receivables	9,628,256	9,571,003	7,281,445
Loss allowance for long-term receivables	( 361,435)	( 352,760)	( 342,915)
Prepayments for equipment	82,090	162,629	1,599,987
Others	90,321	25,996	110,185
	$ 9,670,071	$ 9,582,415	$ 8,810,540

24. BORROWINGS

(1) Short-term borrowings

	March 31, 2024	December 31, 2023	March 31, 2023
Secured loans
Bank loans	$ 1,108,500	$ 972,000	$ 512,000
Unsecured borrowings
Line of credit borrowings	10,202,955	8,959,914	7,145,535
	$ 11,311,455	$ 9,931,914	$ 7,657,535

The interest rate of bank revolving loans is 1.42% - 3.40%, 1.45% - 3.86% and 1.40% - 3.11% on March 31, 2024, December 31, 2023 and March 31, 2023, respectively.

(2) Short-term notes and bills payable

	March 31, 2024	December 31, 2023	March 31, 2023
Commercial paper payable	$ 14,395,000	$ 12,135,000	$ 11,895,000
Less: Discount on short-term notes and bills payable	( 21,209)	( 12,981)	( 7,105)
	$ 14,373,791	$ 12,122,019	$ 11,887,895

Short-term notes and bills payable that have not yet matured are as follows:

March 31, 2024

Promissory Institution	Nominal Amount	Discount Amount	Amount	Interest Rate	Collateral
Ta Ching Bills Finance Corporation (1)	$ 575,000	$ 5	$ 574,404	1.31% - 2.82%	None
Ta Ching Bills Finance Corporation (2)	80,000	284	79,716	1.31% - 2.82%	Securities sold under repurchase agreements
China Bills Finance Corporation (1)	1,700,000	2,142	1,697,858	1.31% - 2.82%	None
China Bills Finance Corporation (2)	100,000	14	99,986	1.31% - 2.82%	Pledged time deposits
Taiwan Finance Corporation (1)	1,120,000	2,390	1,117,610	1.31% - 2.82%	None
Taiwan Finance Corporation (2)	50,000	7	49,993	1.31% - 2.82%	Pledged time deposits
Mega Bills Finance Corporation	3,230,000	5,107	3,224,893	1.31% - 2.82%	None
Taiwan Cooperative Bills Finance Corporation	1,200,000	1,316	1,198,684	1.31% - 2.82%	〃
International Bills Finance Corporation (1)	860,000	1,479	858,521	1.31% - 2.82%	〃
International Bills Finance Corporation (2)	70,000	196	69,804	1.31% - 2.82%	Pledged time deposits
Grand Bills Finance Corporation	2,180,000	2,545	2,177,455	1.31% - 2.82%	None
Dah Chung Bills Finance Corporation	130,000	82	129,918	1.31% - 2.82%	Pledged time deposits
Sunny Bank	500,000	504	499,496	1.31% - 2.82%	None
Union Bank	600,000	680	599,320	1.31% - 2.82%	〃
First Bank	200,000	734	199,266	1.31% - 2.82%	〃
KGI Bank (1)	900,000	1,007	898,993	1.31% - 2.82%	〃
KGI Bank (2)	200,000	819	199,181	1.31% - 2.82%	5% reserve for savings deposits
Yuanta Commercial Bank	100,000	34	99,966	1.31% - 2.82%	None
Hua Nan Bank	300,000	591	299,409	1.31% - 2.82%	〃
Bank SinoPac	300,000	682	299,318	1.31% - 2.82%	〃
	$ 14,395,000	$ 21,2	$ 14,373,791

December 31, 2023

Promissory Institution	Nominal Amount	Discount Amount	Amount	Interest Rate	Collateral
Ta Ching Bills Finance Corporation (1)	$ 300,000	$ 2	$ 299,745	1.34% - 2.74%	None
Ta Ching Bills Finance Corporation (2)	80,000	285	79,715	1.34% - 2.74%	Securities sold under repurchase agreements
China Bills Finance Corporation (1)	600,000	213	599,787	1.34% - 2.74%	None
China Bills Finance Corporation (2)	130,000	379	129,621	1.34% - 2.74%	Pledged time deposits
Taiwan Finance Corporation (1)	280,000	79	279,921	1.34% - 2.74%	None
Taiwan Finance Corporation (2)	50,000	129	49,871	1.34% - 2.74%	Pledged time deposits
Mega Bills Finance Corporation (1)	2,150,000	1,323	2,148,677	1.34% - 2.74%	None
Mega Bills Finance Corporation (2)	100,000	359	99,641	1.34% - 2.74%	Securities sold under repurchase agreements
Taiwan Cooperative Bills Finance Corporation (1)	900,000	944	899,056	1.34% - 2.74%	None
Taiwan Cooperative Bills Finance Corporation (2)	100,000	263	99,737	1.34% - 2.74%	Securities sold under repurchase agreements
Promissory Institution	Nominal Amount	Discount Amount	Amount	Interest Rate	Collateral
---	---	---	---	---	---
International Bills	$ 200,000	$ 16	$ 199,834	1.34% - 2.74%	None
Finance Corporation (1)
International Bills	70,000	55	69,945	1.34% - 2.74%	Pledged time deposits
Finance Corporation (2)
Grand Bills Finance Corporation	765,000	560	764,440	1.34% - 2.74%	None
Dah Chung Bills Finance Corporation	130,000	399	129,601	1.34% - 2.74%	Pledged time deposits
ChinaTrust Commercial Bank	100,000	104	99,896	1.34% - 2.74%	None
Sunny Bank	500,000	350	499,650	1.34% - 2.74%	n
Yuanta Commercial Bank	220,000	28	219,972	1.34% - 2.74%	n
First Bank	200,000	689	199,311	1.34% - 2.74%	n
Bank SinoPac	200,000	67	199,933	1.34% - 2.74%	n
Mega Bank (Syndicated Loan)	2,980,000	3,808	2,976,192	1.34% - 2.74%	n
Hua Nan Bank (Syndicated Loan)	780,000	1,090	778,910	1.34% - 2.74%	n
KGI Bank (1)	1,100,000	1,097	1,098,903	1.34% - 2.74%	n
KGI Bank (2)	200,000	339	199,661	1.34% - 2.74%	5% reserve for savings deposits
	$ 12,135,000	$ 12.98	$ 12,122,019

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March 31, 2023

Promissory Institution	Nominal Amount	Discount Amount	Amount	Interest Rate	Collateral
Ta Ching Bills Finance Corporation	$ 780,000	$ 1,0	$ 778,928	1.00% - 2.86%	None
China Bills Finance Corporation (1)	2,605,100	623	2,604,477	1.00% - 2.86%	〃
China Bills Finance Corporation (2)	100,000	156	99,844	1.00% - 2.86%	Pledged time deposits
Taiwan Finance Corporation (1)	80,000	-	80,000	1.00% - 2.86%	None
Taiwan Finance Corporation (2)	150,000	171	149,829	1.00% - 2.86%	Pledged time deposits
Mega Bills Finance Corporation	2,900,000	1,245	2,898,755	1.00% - 2.86%	None
Taiwan Cooperative Bills Finance Corporation	900,000	952	899,048	1.00% - 2.86%	〃
International Bills Finance Corporation	699,900	487	699,413	1.00% - 2.86%	〃
Grand Bills Finance Corporation	80,000	-	80,000	1.00% - 2.86%	〃
Dah Chung Bills Finance Corporation (1)	400,000	215	399,785	1.00% - 2.86%	〃
Dah Chung Bills Finance Corporation (2)	100,000	143	99,857	1.00% - 2.86%	Pledged time deposits
Sunny Bank	500,000	197	499,803	1.00% - 2.86%	None
Union Bank	600,000	209	599,791	1.00% - 2.86%	〃
First Bank	200,000	-	200,000	1.00% - 2.86%	〃
KGI Bank	1,200,000	1,190	1,198,810	1.00% - 2.86%	〃
Yuanta Commercial Bank	300,000	276	299,724	1.00% - 2.86%	〃
ChinaTrust Commercial Bank	300,000	169	299,831	1.00% - 2.86%	〃
	$ 11,895,000	$ 7,1	$ 11,887,895

(3) Long-term borrowings

	March 31, 2024	December 31, 2023	March 31, 2023
Taiwan Bank (1)	$ 1,800,000	$ 1,800,000	$ 2,250,000
Taiwan Bank (2)	150,000	150,000	150,000
Hua Nan Bank (1)	350,000	350,000	350,000
Hua Nan Bank (2)	120,000	140,000	200,000
Hua Nan Bank (3)	41,200	48,067	68,667
Hua Nan Bank (4)	$ 200,000	$ -	$ 460,000
Hua Nan Bank (Syndicated Loan) (1)	1,470,000	720,000	530,000
Hua Nan Bank (Syndicated Loan) (2)	700,000	600,000	-
Taiwan Business Bank	350,000	350,000	350,000
Bank SinoPac (1)	685,782	690,460	342,789
Bank SinoPac (2)	783,750	783,750	688,800
Bank SinoPac (3)	170,930	-	60,505
Bank SinoPac (4)	475,000	-	-
Bank SinoPac (5)	131,918	-	-

	March 31, 2024	December 31, 2023	March 31, 2023
Bank SinoPac (6)	550,000	500,000	-
Bank SinoPac (7)	100,000	100,000	-
Bank of East Asia	100,000	300,000	100,000
Cathay United Bank (1)	350,000	350,000	150,000
Cathay United Bank (2)	-	-	591,127
E.Sun Bank	32,917	37,855	51,378
Mega Bank (1)	-	1,627,400	1,218,400
Mega Bank (2)	500,000	500,000	200,000
Mega Bank (3)	31,229	31,229	-
Mega Bank (4)	-	142,676	-
Mega Bank (Syndicated Loan) (1)	1,180,000	1,130,000	235,000
Far Eastern International Bank (1)	250,000	250,000	400,000
Far Eastern International Bank (2)	150,000	150,000	150,000
Far Eastern International Bank (3)	2,203,598	2,208,805	2,187,774
Far Eastern International Bank (4)	2,199,595	2,120,592	2,161,695
Taiwan Cooperative Bank	55,000	92,000	100,000
Bank of Panhsin (1)	-	103,200	103,200
Bank of Panhsin (2)	305,000	305,000	357,000
Mizuho Bank	200,000	200,000	100,000
Bank of Kaohsiung	-	-	200,000
Yuanta Commercial Bank	500,000	500,000	500,000
Union Bank	71,790	81,120	102,460
China Bills Finance Corporation	1,500,000	1,500,000	-
Ta Ching Bills Finance Corporation	1,000,000	1,000,000	-
Union Bills Finance Corporation	1,000,000	500,000	-
Mega Bills Finance Corporation	500,000	500,000	-
Mega International Commercial Bank (I)	$ 336,762	$ 233,111	$ 197,406
Mega International Commercial Bank (II)	319,924	254,528	143,568
	20,864,395	20,349,793	14,699,769
Less: Current portion	(4,812,581)	(5,208,641)	(4,768,725)
Less: Unamortized discounts on commercial papers	(10,720)	(12,384)	(4,103)
Long-term borrowings	$ 16,041,094	$ 15,128,768	$ 9,926,941

The effective interest rates of the above borrowings were $1.41\% - 4.22\%$ , $1.20\% - 4.22\%$ and $1.075\% - 3.40\%$ on March 31, 2024, December 31, 2023 and March 31, 2023, respectively.

Refer to Note 41 for information relating to assets pledged as security for bank borrowings.

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25. BANK NOTES PAYABLE

	March 31, 2024	December 31, 2023	March 31, 2023
Secondary financial debentures (1)	$ 1,320,000	$ 1,320,000	$ 1,820,000
Secured domestic bonds (2)	5,000,000	5,000,000	5,000,000
Less: Current portion	( 500,000)	( 500,000)	( 500,000)
	$ 5,820,000	$ 5,820,000	$ 6,320,000

(1) Secondary financial debentures

a. Taipei Star Bank issued its first subordinated financial debenture on June 24, 2016, which was approved under Rule No. 10500122720 issued by the FSC on May 24, 2016. Details of the financial debenture issuance are summarized as follows:

i. Amount approved for issuance: NT $500,000 thousand.
ii. Principal issued: $500,000 thousand.
iii. Denomination: $10,000 thousand, issued at par.
iv. Period: 7 years with maturity date on June 24, 2023.
v. Nominal interest rate: Fixed interest rate, 1.9%.
vi. Principal repayment: Principal is repaid at maturity.
vii. The interest will be paid annually from the issuance date.

b. Taipei Star Bank issued their first, second, third and fourth financial debentures on June 19, June 30, August 18 and September 29, 2017, respectively, which were approved under Rule No. 10600104680 issued by the Banking Bureau of the FSC on May 11, 2017. Details of the financial debenture issuance are summarized as follows:

i. Amount approved for issuance: NT $500,000 thousand.
ii. Principal issued:

A. 2017 first term: $200,000 thousand.
B. 2017 second term: $100,000 thousand.
C. 2017 third term: $100,000 thousand.
D. 2017 fourth term: $100,000 thousand.

iii. Denomination:

A. 2017 first term: $10,000 thousand, issued at par.
B. 2017 second term: $10,000 thousand, issued at par.
C. 2017 third term: $10,000 thousand, issued at par.
D. 2017 fourth term: $10,000 thousand, issued at par.

iv. Period:

A. 2017 first term: 7 years with maturity on June 19, 2024.
B. 2017 second term: 7 years with maturity on June 30, 2024.
C. 2017 third term: 7 years with maturity date on August 18, 2024.
D. 2017 fourth term: 7 years with maturity on September 29, 2024.

v. Bond interest rate:
A. 2017 first term: 1.90% fixed annual interest rate.
B. 2017 second term: Fixed interest rate of 1.85%.
C. 2017 third term: Fixed interest rate of 1.85%.
D. 2017 fourth term: Fixed interest rate of 1.85%.

vi. Principal repayment: Principal is repaid at maturity.

vii. The interest will be paid annually from the issuance date.

c. Taipei Star Bank issued their first and second issues of financial debentures with no maturity dates on September 17 and December 24, 2018, January 25, April 25 and June 17, 2019, respectively, which were approved under Rule No. 10701122210 issued by the Financial Supervisory Commission on July 30, 2018. Details of the financial debenture issuance are summarized as follows:

i. Amount approved for issuance: NT $600,000 thousand.

ii. Principal issued:
A. 2018 first term: $200,000 thousand.
B. 2018 second term: $130,000 thousand.
C. 2019 first term: $40,000 thousand.
D. 2019 second term: $20,000 thousand.
E. 2019 third term: $210,000 thousand.

iii. Denomination:
A. 2018 first term: $10,000 thousand, issued at par.
B. 2018 second term: $10,000 thousand, issued at par.
C. 2019 first term: $10,000 thousand, issued at par.
D. 2019 second term: $10,000 thousand, issued at par.
E. 2019 third term: $10,000 thousand, issued at par.

iv. Period:
A. 2018 first term: no maturity date.
B. 2018 second term: No maturity date.
C. 2019 first term: No maturity date.
D. 2019 second term: No maturity date.
E. 2019 third term: No maturity date.

v. Bond interest rate:
A. 2018 first term: 4.00% fixed annual interest rate.
B. 2018 second term: Fixed interest rate of 4.00%.
C. 2019 first term: Fixed interest rate of 4.00.
D. 2019 second term: Fixed annual interest rate of 4.00%.
E. 2019 third term: Fixed interest rate of 4.00%.

vi. Repayment of principal: Taipei Star Bank may redeem the bonds after 5 years

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from the issuance date.

vii. The interest will be paid annually from the issuance date.

d. Taipei Star Bank issued its first non-cumulative subordinated financial debenture on November 1, 2021 with no maturity date and was approved under Rule No. 1100214232 issued by the FSC on June 21, 2021. Details of the financial debenture issuance are summarized as follows:

i. Amount approved for issuance: NT $600,000 thousand.
ii. Principal issued: $220,000 thousand.
iii. Denomination: $10,000 thousand, issued at par.
iv. Period: No maturity date.
v. Nominal interest rate: Fixed interest rate, 2.50%.
vi. Repayment: The Company may redeem the bonds after 5 years from the issuance date.
vii. The interest will be paid annually from the issuance date.

(2) Secured domestic bonds

a. The Company issued its first secured domestic bonds on November 19, 2020, which were approved under ruling reference No. Taipei Exchange, 10900126701. Details of the secured domestic bonds issuance are summarized as follows:

i. Amount approved for issuance: NT $1,500,000 thousand.
ii. Principal issued: $1,500,000 thousand.
iii. Denomination: $1,000 thousand, issued at par.
iv. Period: 5 years with maturity date on November 19, 2025.
v. Nominal interest rate: Fixed interest rate of 0.58%.
vi. Principal repayment: Principal is repaid at maturity.
vii. The interest will be paid annually from the issuance date.
viii. Secured: Secured by bank.

b. The Group issued its second secured domestic bonds on January 14, 2021, which were approved under ruling reference No. Taipei Exchange, 10900149071. Details of the secured domestic bonds issuance are summarized as follows:

i. Amount approved for issuance: NT $1,500,000 thousand.
ii. Principal issued: $1,500,000 thousand.
iii. Denomination: $1,000 thousand, issued at par.
iv. Period: 5 years with maturity date on January 14, 2026.
v. Nominal interest rate: Fixed interest rate of 0.56%.
vi. Principal repayment: Principal is repaid at maturity.
vii. The interest will be paid annually from the issuance date.
viii. Secured: Secured by bank.

c. The Company issued its first secured domestic bonds on October 28, 2021, which was approved under ruling reference No. Taipei Exchange, 11000117541. Details of the secured domestic bonds issuance are summarized as follows:

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i. Amount approved for issuance: NT $2,000,000 thousand.
ii. Principal issued: $2,000,000 thousand.
iii. Denomination: $1,000 thousand, issued at par.
iv. Period: 5 years with maturity date on October 28, 2026.
v. Nominal interest rate: Fixed interest rate of 0.54%.
vi. Principal repayment: Principal is repaid at maturity.
vii. The interest will be paid annually from the issuance date.
viii. Secured: Secured by bank.

26. NOTES PAYABLE AND TRADE PAYABLES

	March 31, 2024	December 31, 2023	March 31, 2023
Notes payable
Occurrence due to business	$ 930,299	$ 216,626	$ 184,508
Trade payables
Occurrence due to business	$ 9,951,134	$ 7,290,727	$ 6,462,104

27. DEPOSITS

	March 31, 2024	December 31, 2023	March 31, 2023
Check deposits	$ 522,256	$ 757,581	$ 528,039
Demand deposits	9,201,548	8,857,462	8,332,021
Demand savings deposits	18,975,274	18,860,825	19,021,253
Time deposits	21,046,089	20,843,242	21,005,287
Regular savings deposits	23,446,034	23,354,725	21,741,618
Negotiable certificates of deposit	1,071,000	881,000	82,200
Remittances	2,571	3,638	12,866
	$ 74,264,772	$ 73,558,473	$ 70,723,284

OTHER LIABILITIES

	March 31, 2024	December 31, 2023	March 31, 2023
Current
Other payables
Payables for equipment	$ 87,696	$ 222,450	$ 41,051
Notes payable for exchange	129,740	284,382	94,855
Payables for salaries or bonuses	805,573	1,035,153	714,440
Dividends payable	890,125	-	1,618,409
Compensation payable to litigation	66,589	66,589	66,589
Others	1,470,933	1,071,934	1,256,864
	$ 3,450,656	$ 2,680,508	$ 3,792,208
Other liabilities
Liabilities	$ 262,834	$ 252,145	$ 294,522
Advance receipts	388,206	237,412	558,355
Underwriting collected by securities department	507,259	16,934	-
Others	259,934	189,344	210,736
	$ 1,418,233	$ 695,835	$ 1,063,613
Non-current
Other liabilities
Guarantee deposits received	$ 226,175	$ 233,225	$ 265,473
Long-term trade payables	76,471	106,821	169,234
Others	51,051	20,580	142,483
	$ 353,697	$ 360,626	$ 577,190

PROVISIONS

	March 31, 2024	December 31, 2023	March 31, 2023
Non-current
Employee retirement benefits (1)	$ 122,096	$ 139,864	$ 216,995
Other employee benefits (2)	331	629	331
Others	22,436	21,750	16,236
	$ 144,863	$ 162,243	$ 233,562

(1) Refer to Note 30 for information related to employee retirement benefits.
(2) Other employee benefits refer to the preferential benefit deposit interest of retired employees.

RETIREMENT BENEFIT PLANS

The pension costs under the defined benefit plans for the years ended March 31, 2024 and 2023 were $1,614 thousand and $2,431 thousand, respectively, which were calculated using the actuarially determined pension cost rate on December 31, 2023 and 2022.

31. EQUITY

(1) Share capital

Common Shares

	March 31, 2024	December 31, 2023	March 31, 2023
Number of shares authorized (in thousands)	2,800,000	2,800,000	2,800,000
Share capital	$ 28,000,000	$ 28,000,000	$ 28,000,000
Number of shares issued and fully paid (in thousands)	1,618,409	1,618,409	1,618,409
Shares issued	$ 16,184,093	$ 16,184,093	$ 16,184,093

Fully paid ordinary shares, which have a par value of $10, carry one vote per share and carry a right to dividends.

(2) Capital surplus

	March 31, 2024	December 31, 2023	March 31, 2023
May be used to offset a deficit, cash distribute or transferred to Share capital (1)
Issuance of ordinary shares	$ 272,247	$ 272,247	$ 272,247
Conversion of bonds	163,223	163,223	163,223
Treasury share transactions	275,547	275,547	275,547
The difference between consideration and carrying amount of subsidiaries acquired or disposed	453,739	453,739	435,463
	1,164,756	1,164,756	1,146,480
May be used to offset deficit only
Changes in percentage of ownership interest in subsidiaries (2)	791,685	796,357	802,915
Changes in net assets of affiliated companies recognized using the equity method	1,988	1,988	-
	793,673	798,345	802,915
	$ 1,958,429	$ 1,963,101	$ 1,949,395

a. Such capital surplus may be used to offset a deficit; in addition, when the Company has no deficit, such capital surplus may be distributed as cash or transferred to share capital (limited to a certain percentage of the Company's paid-in capital each year).

b. Such capital surplus arises from the effect of changes in ownership interests in subsidiaries resulting from equity transactions other than actual disposals or acquisitions, or from changes in capital surplus of subsidiaries accounted for using the equity method.

(3) Retained earnings and dividend policy

According to the surplus distribution policy stipulated in the Company's Articles of Incorporation, if there is a surplus in the annual financial statements after paying all taxes and compensating for accumulated losses, 10% should be set aside as legal reserves. However, if the legal reserves have reached the actual paid-up capital, further allocation is not required. Next, based on legal requirements or business needs, special reserves may be allocated or reversed. If there is still a balance, it can be combined with the unappropriated retained earnings to prioritize the distribution of special cash dividends for preferred shares, followed by dividends for ordinary shareholders. The determination of the amount follows relevant provisions of company law. The Company distributes dividends and bonuses in cash, and this can be done for the entire amount or a portion thereof. Such distribution requires approval by the board of directors with attendance by at least two-thirds of the directors and a majority resolution. The shareholders' meeting must also be informed.

For the policies on the distribution of compensation of employees and remuneration of directors after the amendment, Articles of Incorporation refer to compensation of employees and remuneration of directors in Note 32-(7).

The Company's Articles also stipulate a dividends policy whereby the issuance of stock dividends or the payment of cash dividends. In principle, cash dividends are limited to 20% of the total dividends distributed.

Legal reserve should be contributed until the balance reaches the total amount of the company's paid-in capital. The legal reserve may be used to offset deficits. If the Company has no deficit and the legal reserve has exceeded 25% of the Company's paid-in capital, the excess may be transferred to share capital or distributed in cash.

When recording or reversing special reserves related to accumulated other equity deductions, only the undistributed profits from previous periods are considered.

The Company's 2023 and 2022 earnings distribution proposals are as follows:

	2023	2022
Legal reserve	$ 79,280	$ 289,628
Cash dividends	$ 890,125	$ 1,618,409
Cash dividends per share (NT$)	$ 0.55	$ 1.00

The above cash dividends have been distributed to resolution in the board of directors on March 11, 2024 and March 13, 2023, respectively. The remaining distribution in 2022 has been distributed to items in the general shareholders' meeting on June 2, 2023, resolution. The 2023 annual general shareholders' meeting will be held on May 30, 2024, resolution.

(4) Special reserve

	January 1, 2024 to 31 March	January 1, 2023 to 31 March
Beginning balance and Equity at the end of the period	$2,328,591	$2,328,591

On the first adoption of IFRS Accounting Standards, the Company recorded an unrealized revaluation increment transferred to retained earnings of $1,673,314 thousand, and an equivalent amount has been allocated to a special reserve.

(5) Other equity items

a. Exchange differences in translating the financial statements of foreign operations

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	January 1, 2024 to 31 March	January 1, 2023 to 31 March
Equity at January 1	($ 188,906)	($ 148,467)
Arising during the period
Exchange differences in translating the financial statements of foreign operations	89,278	( 1,459 )
Share from subsidiaries and associates accounted for using the equity method	( 438 )	25
Reclassification adjustments
Disposal of foreign operations	( 2,621 )	-
Ending Balance	($ 102,687)	($ 149,901)

b. Unrealized gains (losses) from financial Fair value transactions through Other comprehensive income

	January 1, 2024 to 31 March	January 1, 2023 to 31 March
Equity at January 1	$ 4,755,064	$ 3,032,864
Arising during the period
Unrealized gain (loss)- equity instruments	( 218,502)	252,862
Share from subsidiaries and associates accounted for using the equity method	( 20,377)	211,575
Other comprehensive income	( 238,879)	464,437
Cumulative unrealized gain (loss) of equity instruments transferred to retained earnings due to disposal	( 147,564)	( 81)
Ending Balance	$ 4,368,621	$ 3,497,220

(6) Non-controlling interests

	January 1, 2024 to 31 March	January 1, 2023 to 31 March
Equity at January 1	$ 10,493,996	$ 10,595,730
Net profit for the year	168,056	105,078
Other comprehensive income
Exchange differences in translating the financial statements of foreign operations	( 29,701)	5,597
Unrealized valuation gain (loss) on financial assets at FVTOCI	( 5,230)	16,732
Partial disposal of subsidiaries - UBright	4,672	965
Acquisition of subsidiaries of UBright	-	( 249)
Cash dividends declared by subsidiaries	( 98,305)	( 94,139)
Others	8,720	3,685
Ending Balance	$ 10,542,208	$ 10,633,399

(7) Treasury shares

Reason for reacquisition	Shares Transfer to Employees (In Thousands of Shares)	Shares Cancelled (In Thousands of Shares)	Shares Held by Its subsidiaries (In Thousands of Shares)	Total (In Thousands of Shares)
Number of shares at January 1, 2024	-	-	4,680	4,680
Increase during the year	-	-	-	-
Decrease during the year	-	-	-	-
Number of shares at March 31, 2024	-	-	4,680	4,680
Number of shares at January 1, 2023	-	-	4,680	4,680
Increase during the year	-	-	-	-
Decrease during the year	-	-	-	-
Number of shares at March 31, 2023	-	-	4,680	4,680

The Company's shares held by its subsidiaries at the end of the reporting periods were as follows:

Name of Subsidiary	Number of Shares Held (In Thousands)	Amount	Market value
March 31, 2024
Hsin Lung Chemical Co., Ltd.	4,680	$ 73,016	$ 73,016
December 31, 2023
Hsin Lung Chemical Co., Ltd.	4,680	$ 72,782	$ 72,782
March 31, 2023
Hsin Lung Chemical Co., Ltd.	4,680	$ 84,249	$ 84,249

Hsin Lung Chemical purchased the shares of Shinkong Synthetic Fibers Corporation for investment purposes before the Group obtained control over Hsin Lung Chemical Co., Ltd.

Under the Securities and Exchange Act, the Company shall neither pledge treasury shares nor exercise shareholders' rights on these shares, such as rights to dividends and to vote. The subsidiaries holding treasury shares, however, retain shareholders' rights, except the rights to participate in any share issuance for cash and to vote.

NET INCOME FROM CONTINUING OPERATIONS

(1) Contract revenue

Refer to Note 51 for the disaggregation of contract revenue for the periods from January 1 to March 31, 2024 and 2023.

(2) Finance costs

	January 1, 2024 to 31 March	January 1, 2023 to 31 March
Bank loan Interest	$ 203,568	$ 144,552
Interest on lease liabilities	7,843	7,926
Other finance costs	9,889	11,939
Total finance costs on financial liabilities not at FVTPL	221,300	164,417
Due to the Central Bank and other banks	27,623	25,244
finance costs on bills and bonds sold under repurchase agreements	8,919	11,204
Interest on deposits	225,900	184,178
Other finance costs	7,153	7,217
	$ 490,895	$ 392,260

Information about capitalized interest was as follows:

	January 1, 2024 to 31 March	January 1, 2023 to 31 March
Capitalized interest	$ 1,026	$ 1,918
Capitalization rate	1.44% - 4.00%	1.32% - 4.00%

(3) Impairment (losses) recognized reversed

	January 1, 2024 to 31 March	January 1, 2023 to 31 March
Investments in debt instruments at FVTOCI	($ 396)	($ 1)
Financial assets at amortized cost	$ 442	$ 67
Bad debt expense, commitments and guarantee liability provisions	($ 8,411)	$ 12,435
Accounts receivable, other receivables and collections	($ 10,415)	($ 11,532)
Property, plant and equipment	($ 824)	($ 824)

(4) Depreciation and amortization

	January 1, 2024 to 31 March	January 1, 2023 to 31 March
Property, plant and equipment	$ 465,280	$ 415,808
Investment property	5,567	5,096
Right-of-use assets	50,617	45,042
Others	3,821	3,349
Total	$ 525,285	$ 469,295
Depreciation expense by function
Operating costs	$ 461,290	$ 408,886
Operating expenses	60,174	57,060
	$ 521,464	$ 465,946

Amortization expense summarized by

function

Operating expenses

$ 3,821

$ 3,349

(5) Operating expenses directly related to investment properties

	January 1, 2024 to 31 March	January 1, 2023 to 31 March
Rent income	$ 18,277	$ 16,361

(6) Employee benefits expense

	January 1, 2024 to 31 March	January 1, 2023 to 31 March
Retirement benefits
Defined benefit plans (Note 30)	$ 1,614	$ 2,431
Defined contribution plan	26,833	29,587
	28,447	32,018
Share-based payments (Note 35)
Equity settlement	626	1,853
Total employee benefits expense	$ 29,073	$ 33,871
Summary by function
Operating costs	$ 18,680	$ 16,562
Operating expenses	10,393	17,309
	$ 29,073	$ 33,871

(7) Compensation of employees and remuneration of directors

The Company accrued compensation of employees and remuneration of directors at rates no less than 1% and no higher than 5%, respectively, of net profit before income tax, compensation of employees, and remuneration of directors. The compensation of employees and remuneration of directors for the years ended March 31, 2024 and 2023 were as follows:

Estimated ratio

	January 1, 2024 to 31 March	January 1, 2023 to 31 March
Compensation of employees	1%	1%
Remuneration of directors	-	-

Amount

	January 1, 2024 to 31 March	January 1, 2023 to 31 March
Compensation of employees	$ 3,669	$ 770
Remuneration of directors	$ -	$ -

If there is a change in the amounts after the annual consolidated financial statements are

authorized for issue, the differences are recorded as a change in the accounting estimate.

The compensation of employees and remuneration of directors for the years ended December 31, 2023 and 2022, which were approved by the Company's board of directors on March 11, 2024 and March 13, 2023, respectively, were as follows:

	2023		2022
	Cash	Share	Cash	Share
Compensation of employees	$ 6,721	$ -	$ 33,735	$ -
Remuneration of directors	-	-	-	-

There was no difference between the actual amounts of compensation of employees and remuneration of directors paid, and the amounts recognized in the consolidated financial statements for the years ended December 31, 2023 and 2022.

Information on the compensation of employees and remuneration of directors of resolution can be obtained from the "Market Observation Post System" of the Taiwan Stock Exchange.

(8) Foreign exchange gains (losses)

	January 1, 2024 to 31 March	January 1, 2023 to 31 March
Foreign exchange gains	$ 484,424	$ 237,301
Foreign exchange losses	( 230,168)	( 289,710)
Net profit (loss)	$ 254,256	($ 52,409)

33. CONTINUING OPERATIONS INCOME TAX

(1) Income tax recognized in profit or loss

The main composition of tax expense items is as follows:

	January 1, 2024 to 31 March	January 1, 2023 to 31 March
Current tax
Arising from the current period	$ 142,911	$ 152,607
Adjustments for prior years	( 12)	-
Deferred tax
Arising from the current period	26,124	( 16,096)
Income tax expense recognized in profit or loss	$ 169,023	$ 136,511

(2) Approval of income tax

The income tax returns of Taipei Star Bank's through 2020 have been assessed by the tax authorities. The income tax returns of Shinkong Synthetic Fibers Corporation, UBright Optronics, Shinkong Polyester Film, Pan Asian Plastics, Pan Asian Plastics, Hsingshing Investment Co., Ltd., TacBright Optronics and Shinkong Engineering Co., Ltd. through 2021 have been assessed by the tax authorities. The income tax returns of Hsinshin Asset

Management, Shinkong Power Technology, Shin Kong Fintech, Shinkong International Securities, Shinkong Insurance Agent, Shikong Property Insurance Agency, Shinkong Investment Consultant, Shinkong International Leasing Corp., Shinkong Applied Materials, Shinkong Youth Co., Ltd., Otobuy Co., Ltd., Shinkong Technologies Corporation, Shin Chiun Industrial Co., Ltd., Shinkong Innovations, Far Trust Consumer Finance, Fartrust Car Rental, Fartrust International Leasing, Shinpont Industry Inc., Hsin Lung Chemical, Chi Jian Human-Resource, Jin Liang Power Service, Intelligent Medical Big Data, Co-creation Ingenuity Renewable, and Shinkong Energy through 2022 have been assessed by the tax authorities.

34. EARNINGS PER SHARE

The earnings and weighted average number of ordinary shares outstanding used in the computation of earnings per share from continuing operations were as follows:

Net profit for the year

	January 1, 2024 to 31 March	January 1, 2023 to 31 March
Net profit attributable to owners of the Company	$ 354,219	$ 24,661
Share		Unit: thousand shares
	January 1, 2024 to 31 March	January 1, 2023 to 31 March
Weighted average number of ordinary shares used in the computation of Basic earnings per share	1,613,729	1,613,729
Effect of potentially dilutive ordinary shares:
Compensation of employees	651	1,509
Weighted average number of ordinary shares used in the computation of diluted earnings per share	1,614,380	1,615,238

If the Group offered to settle compensation paid to employees in cash or shares, the Group assumed the entire amount of the compensation would be settled in shares and the resulting potential shares were included in the weighted average number of shares outstanding used in the computation of diluted earnings per share, as the effect is dilutive. Such dilutive effect of the potential shares is included in the computation of diluted earnings per share until the number of shares to be distributed to employees is resolved in the following year.

35. SHARE-BASED PAYMENTS AGREEMENT

(1) UBright Optronics Corp. granted 2,050 and 880 options to its employees in October 2021 and January 2020, respectively. Each option entitles the holder to subscribe for 1,000 ordinary shares of the Company. Granted to employees with UBright Optronics Corp. that meet specific conditions. The options granted are valid for 5 years and exercisable at certain percentages after the second anniversary from the grant date. The options were granted at an exercise price equal to the closing price of UBright Optronics Corp.'s ordinary shares on the grant date. For any subsequent changes in UBright Optronics Corp.'s ordinary shares, the exercise price is adjusted accordingly.

-59-

Information on employee share options is as follows:

Employee share options	Oct. 2021 Share Option Scheme
	January 1 to March 31, 2024		January 1 to March 31, 2023
	Unit	Price (NT$)	Unit	Price (NT$)
Outstanding, beginning	1,513	$ 25.90	2,050	$ 28.20
Granted during the period	-	-	-	-
Options expired	-	-	-	-
Executed during the period	( 265)	25.90	-	-
Overdue expiration of the period	-	-	-	-
Outstanding, ending	1,248	25.90	2,050	28.20
Options exercisable, end of period	223	25.90	-	-
Fair value of share options granted (NT $)	$ -		$ -
Employee share options	Jan. 2020 Share Option Scheme
---	---	---	---	---
	January 1 to March 31, 2024		January 1 to March 31, 2023
	Unit	Price (NT$)	Unit	Price (NT$)
Outstanding, beginning	370	$ 19.10	647	$ 20.80
Granted during the period	-	-	-	-
Options expired	-	-	-	-
Executed during the period	( 182)	19.10	( 88)	20.80
Overdue expiration of the period	-	-	-	-
Outstanding, ending	188	19.10	559	20.80
Options exercisable, end of period	188	19.10	207	20.80
Fair value of share options granted (NT $)	$ -		$ -

Compensation costs recognized for the years ended March 31, 2024 and 2023 were $626 thousand and $1,853 thousand, respectively.

(2) Qualified employees of Shin Kong Fintech (SKF) were granted 2,000 options in August 2021. Each option entitles the holder to subscribe to one thousand ordinary shares of SKF. The options granted are valid for 10 years and exercisable at certain percentages after the seventh anniversary of the grant date. The options were granted at an exercise price equal to the closing price of SKF's ordinary shares listed on the grant date. For any subsequent changes after the issuance of the stock options, the exercise price is adjusted accordingly.

Information on employee share options is as follows:

Employee share options	Aug. 2021 Share Option Scheme
	January 1 to March 31, 2024		January 1 to March 31, 2023
	Unit	Price (NT$)	Unit	Price (NT$)
Outstanding, beginning	2,000	$ 10.00	2,000	$ 10.00
Granted during the period	-	-	-	-
Options expired	-	-	-	-
Executed during the period	-	-	-	-
Overdue expiration of the period	-	-	-	-
Outstanding, ending	2,000	10.00	2,000	10.00
Options exercisable, end of period	-	-	-	-
Fair value of share options granted (NT $)	-	-	-	-

36. BUSINESS COMBINATION

(1) Subsidiaries acquired Subsidiary

	Principal Activity	Date of Acquisition	Proportion of Voting Equity Interests Acquired (%)	Consideration transferred
Co-creation Ingenuity Renewable	Solar power business	June 2023	100.00%	$ 500

In 2023, the Group acquired Co-creation Ingenuity Renewable Corp. to expand its solar power business.

(2) Consideration transferred

Cash	Co-creation Ingenuity Renewable
	$ 500

Acquisition-related costs were excluded from the consideration transferred and recognized under other expenses in the period of acquisition.

(3) Assets acquired and liabilities assumed at the date of acquisition

| | Co-creation Ingenuity
Renewable |
| --- | --- |
| Current assets | |
| Cash and cash equivalents | $ 2,981 |
| Receivable | 27,094 |
| Prepayments | 2,100 |
| Other Assets. | 5,597 |
| Non-current assets | |
| Property, plant and equipment | 141,845 |
| Right-of-use assets | 44 |
| Other Assets. | 1,000 |
| Current liabilities | |
| Other payables | ( 177,100) |
| Other current liabilities | ( 3,016) |
| Non-current liabilities | |
| Lease liabilities | ( 45) |
| | $ 500 |

(4) Goodwill recognized on acquisitions

| | Co-creation Ingenuity
Renewable |
| --- | --- |
| Consideration transferred | $ 500 |
| Plus: Non-controlling interests | - |
| Less: Fair value of identifiable net assets acquired | ( 500) |
| Goodwill recognized on acquisitions | $ - |

(5) Net cash (outflow) inflow on the acquisition of subsidiaries

| | Co-creation Ingenuity
Renewable |
| --- | --- |
| Consideration paid in cash | $ 500 |
| Less: Cash and cash equivalent balances acquired | ( 2,981) |
| | ($ 2,481) |

(6) Impact of acquisitions on the results of the Group

The financial results of the acquirees since the acquisition date on June 29, 2023 to December 31, 2023, which are included in the consolidated statements of comprehensive income, are as follows:

| | Co-creation Ingenuity
Renewable |
| --- | --- |
| Operating revenue | $ 15,228 |
| Net profit for the year | $ 3,965 |

If the acquisition of Co-creation Ingenuity Renewable had occurred on January 1, 2023, the Group's proposed Operating revenue would have been $9,145,368 thousand, and the proposed net profit would have been $128,751 thousand for the period from January 1, 2023 to March 31, 2023. These amounts do not reflect the actual revenue and operating results that the Consolidated Company would have generated if the business combination had been completed at the beginning of the year of acquisition and should not be used as a forecast of future operating results.

37. EQUITY TRANSACTIONS WITH NON-CONTROLLING INTERESTS

The Group purchased shares of UBright Optronics from January 1, 2024 to March 31, 2024, and UBright Optronics issued new shares due to the exercise of employee stock options, resulting in a decrease in shareholding ratio from 59.64% to 59.31%.

The Group purchased shares of UBright Optronics from January 1, 2023 to March 31, 2023, and UBright Optronics issued new shares due to the exercise of employee stock options, resulting in a decrease in shareholding ratio from 59.77% to 59.71%.

The above transactions were accounted for as Equity transactions, since the Group did not cease to have control over these subsidiaries.

| | January 1, 2024
to 31 March |
| --- | --- |
| | UBright |
| Consideration paid | $ - |
| The proportionate share of the carrying amount of the net assets of
the subsidiary transferred to non-controlling interests | (4,672) |
| Differences recognized from equity transactions | ($ 4,672) |
| Line items adjusted for equity transactions | |
| Capital surplus - difference between consideration and carrying
amount of subsidiaries acquired or disposed | $ - |
| Capital surplus - changes in percentage of ownership interests in
subsidiaries | (4,672) |
| | ($ 4,672) |
| | January 1, 2023
to 31 March |
| | UBright |
| Consideration paid | ($ 201) |
| The proportionate share of the carrying amount of the net assets of
the subsidiary transferred to non-controlling interests | (716) |
| Differences recognized from equity transactions | ($ 917) |
| Line items adjusted for equity transactions | |
| Capital surplus - difference between consideration and carrying
amount of subsidiaries acquired or disposed | $ 48 |
| Capital surplus - changes in percentage of ownership interests in
subsidiaries | (965) |
| | ($ 917) |

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38. CAPITAL RISK MANAGEMENT

The Group manages its capital to ensure that entities in the Group will be able to continue as going concerns while maximizing the return to stakeholders through the optimization of the debt and Equity balance.

The capital structure of the Group consists of net debt (borrowings offset by Cash and cash equivalents) and equity attributable to owners of parent (share capital, Capital surplus, Retained earnings and Other equity interest items), which is attributable to owners of the Company.

Key management personnel of the Group review the capital structure on an annual basis. As part of this review, the key management personnel consider the cost of capital and the risks associated with each class of capital. Based on recommendations of the key management personnel, in order to balance the overall capital structure, the Group may adjust the amount of dividends paid to shareholders, the number of new shares issued or repurchased, and/or the amount of new debt issued or existing debt redeemed.

39. FINANCIAL INSTRUMENTS

(1) Fair value of financial instruments not measured at fair value

Except for Fair value, the management believes the carrying amounts of financial instruments that are not measured in accordance with Fair value approximate their fair values.

(2) Fair value of financial instruments measured at fair value on a recurring basis

a. Fair value hierarchy

March 31, 2024

	Level 1	Level 2	Level 3	Total
Financial assets at FVTPL
Derivative	$ -	$ 6,623	$ -	$ 6,623
Domestic listed (OTC) and the emerging stock market	118,845	-	-	118,845
Convertible bonds with assets exchange	-	472,230	-	472,230
Convertible bonds	-	4,520	-	4,520
Fund beneficiary certificate	33,510	-	-	33,510
Limited partnership funds	-	63,724	-	63,724
Short-term transactions instruments	549,346	-	-	549,346
Foreign corporate bonds	461,322	-	-	461,322
Domestic corporate bonds	50,059	-	-	50,059
Total	$ 1,213,082	$ 547,097	$ -	$ 1,760,179
Financial assets at FVTOCI
Investments in equity instruments at FVTOCI
- Domestic listed (OTC) and the emerging stock market	$ 7,093,793	$ -	$ -	$ 7,093,793
- Domestic unlisted (counter) stocks	-	2,381,678	118,603	2,500,281
- Foreign investments	-	81,698	-	81,698
Investments in debt instruments at FVTOCI
- Debt investments	3,550,484	1,472,799	-	5,023,283
Total	$ 10,644,277	$ 3,936,175	$ 118,603	$ 14,699,055
Financial liabilities at FVTPL
Derivative	$ -	$ 9,524	$ -	$ 9,524

December 31, 2023

	Level 1	Level 2	Level 3	Total
Financial assets at FVTPL
Derivative	$ -	$ 16,637	$ -	$ 16,637
Domestic listed (counter) and emerging market Share
	102,826	-	-	102,826
Convertible bonds with assets exchange	-	725,240	-	725,240
Convertible bonds	-	4,640	-	4,640
Fund beneficiary certificate	32,677	-	-	32,677
Limited partnership funds	-	63,724	-	63,724
Short-term transactions instruments	249,749	-	-	249,749
Foreign corporate bonds	292,477	-	-	292,477
Domestic corporate bonds	50,074	-	-	50,074
Total	$ 727,803	$ 810,241	$ -	$ 1,538,044
	Level 1	Level 2	Level 3	Total
Financial assets at FVTOCI
Investments in equity instruments at FVTOCI
- Domestic listed (OTC) and the emerging stock market	$ 7,758,922	$ -	$ -	$ 7,758,922
- Domestic unlisted (counter) stocks	-	2,367,589	113,397	2,480,986
- Foreign investments	-	78,501	-	78,501
Investments in debt instruments at FVTOCI
- Debt investments	2,006,398	1,223,986	-	3,230,384
Total	$ 9,765,320	$ 3,670,076	$ 113,397	$ 13,548,793
Financial liabilities at FVTPL
Derivative	$ -	$ 10,223	$ -	$ 10,223

March 31, 2023

	Level 1	Level 2	Level 3	Total
Financial assets at FVTPL
Derivative	$ -	$ 15,484	$ -	$ 15,484
Domestic listed (OTC) and the emerging stock market	87,102	-	-	87,102
Puttable preference shares	-	31,344	-	31,344
Convertible bonds with assets exchange	-	573,113	-	573,113
Convertible bonds	-	6,779	-	6,779
Fund beneficiary certificate	85,341	-	-	85,341
Limited partnership funds	-	67,064	-	67,064
Short-term transactions instruments	199,756	-	-	199,756
Foreign corporate bonds	270,392	-	-	270,392
Domestic corporate bonds	50,272	-	-	50,272
Total	$ 692,863	$ 693,784	$ -	$ 1,386,647
Financial assets at FVTOCI
Investments in equity instruments at FVTOCI
- Domestic listed (OTC) and the emerging stock market	$ 7,054,901	$ -	$ -	$ 7,054,901
- Domestic unlisted (counter) stocks	-	2,083,694	104,910	2,188,604
- Foreign investments	-	36,314	-	36,314

Investments in debt instruments at FVTOCI

Debt investments

Total

1,040,754	1,262,579	-	2,303,333
$ 8,095,655	$ 3,382,587	$ 104,910	$ 11,583,152

Financial liabilities at FVTPL

Derivative

$ - $ 7,281 $ - $ 7,281

There was no transfer between Level 1 and Level 2 Fair value from January 1 to March 31, 2024 and 2023.

b. Reconciliation of Level 3 fair value measurements of financial instruments

January 1 to March 31, 2024

Financial assets	Financial Assets at FVTOCI
	Equity Instruments
Equity at January 1	$ 113,397
Recognized in other comprehensive income (included in unrealized gain (loss) on financial assets at FVTOCI)	5,206
Ending Balance	$ 118,603

January 1 to March 31, 2023

Financial assets	Financial Assets at FVTOCI
	Equity Instruments
Equity at January 1	$ 101,062
Recognized in other comprehensive income (included in unrealized gain (loss) on financial assets at FVTOCI)	3,848
Ending Balance	$ 104,910

c. Valuation techniques and inputs applied for Level 2 fair value measurement

Financial Instruments	Valuation Techniques and Inputs
Derivatives-foreign exchange forward contracts / exchange rate swap contracts	Discounted cash flow: Future cash flows are estimated based on observable forward exchange rates at the end of the reporting period and contract forward rates, discounted at a rate that reflects the credit risk of various counterparties.
Derivatives - foreign exchange forward contracts	Based on the exchange rates quoted by Reuters on each settlement date.
Unlisted debt securities - ROC	Discounted cash flow: Future cash flows are discounted at a rate that reflects the current borrowing interest rates of the bond issuers at the end of the reporting period.
Unlisted equity securities - ROC	Based on market observations, economic trends and industry characteristics, value multipliers that are highly relevant to the target are used as inputs for fair value calculation.

d. Valuation techniques and inputs applied for Level 3 fair value measurement

Financial Instruments

Valuation Techniques and Inputs

Unlisted equity securities - ROC

Discounted cash flow: The cash dividends and parameters are discounted using the discounted cash flow method with the relevant discount taken into account.

Market multiplier: Based on the transaction prices of the shares in an active market of companies in comparable industries, the corresponding net value multiplier and taking into consideration the liquidity discount ratio, the fair value of the target is evaluated. The main significant unobservable input is the liquidity discount.

e. Sensitivity analysis of reasonable possible alternative assumptions for Level 3 fair value measurement

The significant unobservable inputs of the income approach used by the Group are the discount rate, non-controlling interests discount rate and liquidity discount rate. The relevant sensitivity analysis is as follows:

Unit: NT $thousands

March 31, 2024
Significant Unobservable Input	Range of Changes	Affected Amount
Discount rate	1% increase	($ 2,094)
	1% decrease	2,600
Discount for lack of marketability	10% increase	( 5,590)
	10% decrease	5,590
December 31, 2023
---	---	---
Significant Unobservable Input	Range of Changes	Affected Amount
Discount rate	1% increase $	($ 1,965)
	1% decrease	2,432
Discount for lack of marketability	10% increase	( 11,839)
	10% decrease	10,950
March 31, 2023
---	---	---
Significant Unobservable Input	Range of Changes	Affected Amount
Discount rate	1% increase $	( $ 1,977)
	1% decrease	2,446
Discount for lack of marketability	10% increase	( 5,185)
	10% decrease	5,185

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(3) Categories of financial instruments

	March 31, 2024	December 31, 2023	March 31, 2023
Financial assets
Financial assets at FVTPL
Mandatorily classified as at FVTPL	$ 1,760,179	$ 1,538,044	$ 1,386,647
Financial assets at amortized cost (a)	56,342,403	51,820,240	48,221,618
Financial assets at FVTOCI
Investments in equity instruments at FVTOCI	9,675,772	10,318,409	9,279,819
Investments in debt instruments at FVTOCI	5,023,283	3,230,384	2,303,333
Financial Liabilities
Financial assets at FVTPL
Financial liabilities held for trading	9,524	10,223	7,281
Amortized cost (b)	64,886,664	56,590,456	49,533,148

Note 1: The balances include financial assets measured at amortized cost, which comprise cash and cash equivalents, time deposits with original maturities of more than 3 months, debt investments, other financial assets, notes receivable, accounts and other receivables.

Note 2: The balances include financial assets measured at amortized cost, which comprise short-term and long-term borrowings, short-term notes and bills payable, notes payable, trade and other payables and bonds payable.

(4) Financial risk management objectives and policies

The Group’s major financial instruments include equity and debt investments, accounts receivables, trade payables, bonds payable, borrowings and lease liabilities. The Group’s corporate treasury function provides services to the business, coordinates access to domestic and international financial markets, and monitors and manages the financial risks relating to the operations of the Group through internal risk reports which analyze exposures by degree and magnitude of risks. These risks include market risk (including foreign currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

The Group minimizes the risk exposure through derivative financial instruments. The use of financial derivatives is governed by the Group’s policies approved by the board of directors, which provided written principles on foreign exchange risk, interest rate risk, credit risk, the use of financial derivatives and non-derivative financial instruments, and the investment of excess liquidity. Compliance with policies and exposure limits is reviewed by the internal auditors on a continuous basis. The Group did not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes.

a. Market risk

The Group’s activities exposed it primarily to the financial risks of changes in foreign currency exchange rates (see ‘i’ below) and interest rates (see ‘ii’ below).

There had been no change to the Group’s exposure to market risks or the manner in which these risks were managed and measured.

i Foreign currency risk

Several subsidiaries of the Company have foreign currency sales and purchases, which expose the Group to foreign currency risk. Exchange rate exposures are managed within approved policy parameters utilizing foreign exchange forward contracts.

The carrying amounts of monetary assets and monetary liabilities denominated in non-functional currencies at the balance sheet date (including monetary items denominated in non-functional currencies that have been eliminated in the Consolidated Financial Statements) and the carrying amounts of derivatives exposed to foreign exchange rate risk are described in Note 44.

The Group required all its group entities to use forward exchange contracts to eliminate currency exposure. It is the Group’s policy to negotiate the terms of the hedge derivatives to match the terms of the hedged item to maximize hedge effectiveness.

Sensitivity analysis

The Group was mainly exposed to the U.S. dollar (USD).

The following table details the Group’s sensitivity to a 5% increase and decrease in the New Taiwan dollar (the functional currency) against the U.S. dollar. The sensitivity rate used when reporting foreign currency risk internally to key management personnel and representing management’s assessment of the reasonably possible change in foreign exchange rates is 5%. A positive number below indicates an increase in pre-tax profit associated with the New Taiwan dollar weakening 5% against the U.S. dollar. For a 5% strengthening of the New Taiwan dollar against the U.S. dollar, there would be an equal and opposite impact on pre-tax profit and the balances below would be negative. This was mainly attributable to the exposure on outstanding receivables and payables in U.S. dollars, which were not hedged at the end of the reporting period.

| | January 1, 2024
to 31 March | January 1, 2023
to 31 March |
| --- | --- | --- |
| Profit or loss | $ 277,795 | $ 323,341 |

ii Interest rate risk

The Group is exposed to interest rate risk because entities in the Group borrow funds at both fixed and floating interest rates. The risk is managed by the Group by maintaining an appropriate mix of fixed and floating rate borrowings, and using interest rate swap contracts and forward interest rate contracts. Hedging activities are evaluated regularly to align with interest rate views and defined risk appetite ensuring the most cost-effective hedging strategies are applied.

-69-

The carrying amounts of the Group’s financial assets and financial liabilities with exposure to interest rates at the end of the reporting period were as follows:

	March 31, 2024	December 31, 2023	March 31, 2023
Fair value interest rate risk	$ 20,715,000	$ 18,455,000	$ 18,715,000
Cash flow interest rate risk	32,165,130	30,269,323	22,353,201

The Group was exposed to cash flow interest rate risk in relation to Bank loan.

Sensitivity analysis

The sensitivity analysis below was determined based on the Group’s exposure to interest rates for non-derivative instruments at the end of the reporting period. For floating rate liabilities, the analysis was prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding for the whole year. A 25 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates.

If interest rates had been 25 basis points higher/lower and all other variables were held constant, the Group’s pre-tax profit for the years ended March 31, 2024 and 2023 would decrease/increase by $20,103 thousand and $13,971 thousand, respectively, which was mainly a result of variable-rate borrowings.

iii Other price risk

The Group was exposed to equity price risk through its investments in listed securities and mutual funds. The Group manages this exposure by maintaining a portfolio of investments with different risks.

Sensitivity analysis

The sensitivity analysis below was determined based on the exposure to equity price risks at the end of the reporting period.

If Equity prices had been 5% higher/lower, pre-tax profit for the years ended March 31, 2024 and 2023 would have increased/decreased by $10,804 thousand and $11,975 thousand, respectively, as a result of the changes in fair value of financial assets at FVTPL. Other comprehensive income before tax will increase/decrease by $483,789 thousand and $463,991 thousand from January 1 to March 31, 2024 and 2023, respectively, due to the increase/decrease in the fair value of financial assets at FVTOCI.

The Group’s sensitivity to investments in securities of equity has not changed significantly from the prior year.

b. Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in a financial loss to the Group. As at the end of the reporting period, the Group’s maximum exposure to credit risk, which would cause a financial loss to the Group due to the failure of the counterparties to discharge its obligation and due to the financial guarantees provided by the Group, could be arise from the carrying amount of the respective recognized financial assets as stated in the

consolidated balance sheets.

The Group adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults.

In order to minimize credit risk, the management of the Group has delegated a team responsible for determining credit limits, credit approvals and other monitoring procedures to ensure that follow-up action is taken to recover overdue debts. In addition, the Group reviews the recoverable amount of each individual trade debt at the end of the reporting period to ensure that appropriate impairment losses is made for irrecoverable amounts. In this regard, management believes the Group's credit risk was significantly reduced.

Accounts receivable is targeted at a large number of customers in different industries and geographical areas. Ongoing credit evaluation is performed on the financial condition of accounts receivables. The Group did not have significant credit risk exposure to any single counterparty or any group of counterparties having similar characteristics.

c. Liquidity risk

The Group manages liquidity risk by monitoring and maintaining a level of cash and cash equivalents deemed adequate to finance the Group's operations and mitigate the effects of fluctuations in cash flows. In addition, management monitors the utilization of bank borrowings and ensures compliance with loan covenants.

Bank loan is an important source of liquidity for the Group. The Group's available unutilized bank loan facilities are set out in 'iii' below.

Ultimate responsibility for liquidity risk management rests with the board of directors, which has built an appropriate liquidity risk management framework for the Group's short, medium and long-term funding and liquidity management requirements. The Group manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, and continuously monitoring forecasted and actual cash flows as well as matching the maturity profiles of financial assets and liabilities.

i Liquidity and interest rate risk tables for non-derivative financial liabilities

The following table details the Group's remaining contractual maturities for its non-derivative financial liabilities with agreed repayment periods. The table had been drawn up based on the undiscounted cash flows of financial liabilities from the earliest date on which the Group can be required to pay. Specifically, bank loans with a repayment-on-demand clause were included in the earliest time band regardless of the probability of the banks choosing to exercise their rights. The maturity dates for other non-derivative financial liabilities were based on the agreed repayment dates.

March 31, 2024

	< 1 Year	1-2 Years	2-5 Years	5+ Years	Total
Non-derivative financial liabilities
Liabilities	$ 12,664,827	$ -	$ -	$ -	$ 12,664,827
Lease liabilities	451,575	594,400	435,781	773,583	2,255,339
Variable interest rate liabilities	16,292,525	11,117,053	3,876,598	1,047,443	32,333,619
Fixed interest rate liabilities	14,373,791	-	-	-	14,373,791
Bank notes payable	500,000	1,500,000	3,500,000	820,000	6,320,000
	$ 44,282,718	$ 13,211,453	$ 7,812,379	$ 2,641,026	$ 67,947,576

Additional information about the maturity analysis for lease Liabilities:

	< 1 Year	1-5 Years	5-10 Years	10-15 Years	15-20 Years	20+ Years
Lease liabilities	$ 451,575	$ 1,030,181	$ 246,538	$ 177,728	$ 52,968	$ 296,349

December 31, 2023

	< 1 Year	1-2 Years	2-5 Years	5+ Years	Total
Non-derivative financial liabilities
Liabilities	$ 8,914,267	$ -	$ -	$ -	$ 8,914,267
Lease liabilities	434,592	430,805	395,876	935,361	2,196,634
Variable interest rate liabilities	15,327,306	10,934,992	3,406,745	787,031	30,456,074
Fixed interest rate liabilities	12,122,019	-	-	-	12,122,019
Bonds payable	500,000	1,500,000	3,500,000	820,000	6,320,000
	$37,298,184	$12,865,797	$7,302,621	$2,542,392	$60,008,994

Additional information about the maturity analysis for lease liabilities:

	< 1 Year	1-5 Years	5-10 Years	10-15 Years	15-20 Years	20+ Years
Lease liabilities	$434,592	$826,681	$339,142	$202,525	$82,521	$311,173

March 31, 2023

	< 1 Year	1-2 Years	2-5 Years	5+ Years	Total
Non-derivative financial liabilities
Liabilities	$ 9,020,512	$ -	$ -	$ -	$ 9,020,512
Lease liabilities	413,859	216,674	703,621	866,249	2,200,403
Variable interest rate liabilities	12,592,240	8,282,700	1,255,686	388,555	22,519,181
Fixed interest rate liabilities	11,887,895	-	-	-	11,887,895
Bank notes payable	500,000	500,000	5,000,000	820,000	6,820,000
	$34,414,506	$8,999,374	$6,959,307	$2,074,804	$52,447,991

Additional information about the maturity analysis for lease Liabilities:

	< 1 Year	1-5 Years	5-10 Years	10-15 Years	15-20 Years	20+ Years
Lease liabilities	$413,859	$920,295	$320,571	$167,541	$63,911	$314,226

The amounts included above for financial guarantee contracts were the maximum amounts the Group could be required to settle under the arrangement with an option to demand the full guaranteed amount if that amount is claimed by the counterparty of the financial guarantee contract. Based on expectations at the end of the reporting period, the Group considers that it is more likely than not that no amount will be paid under the contracts.

ii Liquidity and interest rate risk table for derivative financial liabilities

The following table details the Group's liquidity analysis for its derivative financial instruments. The table is based on the undiscounted contractual net cash inflows and outflows on derivative instruments that settle on a net basis, and the undiscounted gross inflows and outflows on those derivatives that require gross settlement. When the amount payable or receivable is not fixed, the amount disclosed is determined by reference to the projected interest rates as illustrated by the yield curves at the end of the reporting period.

March 31, 2024

	< 1 Year	1-2 Years	2-5 Years	5+ Years	Total
Net settled
Foreign exchange forward contracts	($ 360)	$ -	$ -	$ -	($ 360)
Exchange rate swap contracts	($ 202)	$ -	$ -	$ -	($ 202)
Foreign exchange contracts	($ 2,339)	$ -	$ -	$ -	($ 2,339)

December 31, 2023

	< 1 Year	1-2 Years	2-5 Years	5+ Years	Total
Net settled
Exchange rate swap contracts	$ 334	$ -	$ -	$ -	$ 334
Foreign exchange contracts	$ 6,080	$ -	$ -	$ -	$ 6,080

March 31, 2023

	< 1 Year	1-2 Years	2-5 Years	5+ Years	Total
Net settled
Exchange rate swap contracts	$ 58	$ -	$ -	$ -	$ 58
Foreign exchange contracts	$ 8,145	$ -	$ -	$ -	$ 8,145

iii Financing facilities

	March 31, 2024	December 31, 2023	March 31, 2023
Bank loan credit limit
Amount unused	$ 21,569,347	$ 21,811,069	$ 24,950,893

40. RELATED PARTY TRANSACTIONS

Balances and transactions between the Company and its subsidiaries, which are related parties of the Company, have been eliminated on consolidation and are not disclosed in this note. Besides information disclosed elsewhere in the other notes, details of transactions between the Group and other related parties are disclosed below.

(1) Related party name and category

Related Party Name	Relationship with the Group
The LYCRA Company Taiwan Limited, Taiwan Branch (H.K.)	Affiliated company of subsidiary's main shareholder
LYCRA Singapore	Affiliated company of subsidiary's main shareholder

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(Continued from the previous page)

Related Party Name	Relationship with the Group
Tai Shin Leasing & Financial Co., Ltd.	Associate
Topbottle Resources Technology Corporation	Associate
Shinsol Advanced Chemical Corporation	Associate
Da Chun Universe Investment Co., Ltd.	Associate
Tai Jin Investment Co., Ltd.	Associate
Ecofun Lab Corporation	Associate
Shin Kong Bank Co., Ltd.	Related party in substance
Tong-Sheng Wu and his Associates	Related party in substance
The Bank of Taipei Cultural Foundation	Related party in substance
Shin Kong Life Insurance Co., Ltd.	Related party in substance
Shin Kong Textile Co., Ltd.	Related party in substance
Shin Kong Construction and Development Co., Ltd.	Related party in substance
Shin-Kong Life Real Estate Service Co., Ltd.	Related party in substance
Shinkong Insurance Co. Ltd.	Related party in substance
Taiwan Shin Kong Security Co., Ltd.	Related party in substance
Hwa Jian Human-Resource & Management Co., Ltd.	Related party in substance
Taishin International Co., Ltd., Bank	Related party in substance
Shinkong Mitsukoshi Department Store Co., Ltd.	Related party in substance
The Great Taipei Gas Corporation	Related party in substance
Shinkong iEcofun Corporation	Related party in substance
Jin Guang Fu Cultural & Education Foundation	Related party in substance
Shin Kong Recreation Co., Ltd.	Related party in substance
Everlight Co., Ltd.	Related party in substance
Wang Tien Woolen Textile Co., Ltd.	Related party in substance
Shin Kong Co., Ltd.	Related party in substance
Waibel Enterprise Inc.	Related party in substance
Sian Shun Co., Ltd.	Related party in substance
Ner Victory Company Ltd.	Related party in substance
Star Thomas Corporation	Related party in substance
Guei Lan Cultural & Art Foundation	Related party in substance
Chin Shan Investment Co., Ltd.	Related party in substance
Guei Yuan Investment Co., Ltd.	Related party in substance
Liang Yue Investment Co., Ltd.	Related party in substance
Shinkong Asset Management Co., Ltd.	Related party in substance
Yi Kuang Enterprise Co., Ltd.	Related party in substance
Yi Yin Co., Ltd.	Related party in substance
Shinkong ilive Co., Ltd.	Related party in substance
Shinkong Leasing Co., Ltd.	Related party in substance
Sourcetek Co., Ltd.	Related party in substance
Beitou Hotel Co., Ltd.	Related party in substance
Ruixin Investment Co., Ltd.	Related party in substance
Taipei City Guei Lan Foundation	Related party in substance
Guangsheng International Enterprise Inc.	Related party in substance
Ever Enhancement International Enterprise Co., Ltd.	Related party in substance
GGP Biotechnology Co., Ltd.	Related party in substance
Defu Cultural & Education Foundation	Related party in substance
Shin Kong Wu Ho-Su Rescue Foundation	Related party in substance

(Continued on next page)

(Continued from the previous page)

Related Party Name	Relationship with the Group
Bilisih Co., Ltd.	Related party in substance
Jilien Investment Co., Ltd.	Related party in substance
Shin Kong Development Co., Ltd.	Related party in substance
Tai Yu Investment Co., Ltd.	Related party in substance
Jia Jia Investment Co., Ltd.	Related party in substance
Jia-Jia Investment Co., Ltd.	Related party in substance
Yuan Sheng Investment Co., Ltd.	Related party in substance
Chang Sheng Investment Co., Ltd.	Related party in substance
Dongrong Investment Co., Ltd	Related party in substance
Yu Bang Investment Co., Ltd.	Related party in substance
Chia Pang Investment Co., Ltd.	Related party in substance
Shin Kong Investment Trust Co., Ltd.	Related party in substance
Mian Hao Enterprise Co., Ltd.	Related party in substance
Ji Zhen Co., Ltd.	Related party in substance
Tay Way Enterprise Co., Ltd.	Related party in substance
Sheng Bao Investment Co., Ltd.	Related party in substance
Bei Yuan Investment Co., Ltd.	Related party in substance
Others	The Company’s key management personnel and other related parties

(2) Operating revenue

Line Items	Related Party Categories/Name	January 1 to March 31, 2024	January 1 to March 31, 2023
Sales revenue	Affiliated company of subsidiary's investors main shareholder/others	$ 259,076	$ 286,578
	Related party in substance/others	$ 27,321	$ 2,975

(3) Purchases

	January 1 to March 31, 2024	January 1 to March 31, 2023
Related Party Categories/Name
Associates/others	$ 133,832	$ 94,071
Affiliated company of subsidiary's investors main shareholder/others	$ 1,126	$ -
Related party in substance/others	$ 35	$ 36

(4) Receivables from related parties (excluding loans to related parties)

Line Items	Related Party Categories/Name	March 31, 2024	December 31, 2023	March 31, 2023
Accounts receivables	Affiliated company of subsidiary’s investors main shareholder/others	$ 150,791	$ 236,359	$ 243,509
Accounts receivables	Related party in substance/others	$ 19,173	$ 7,973	$ 1,351

(5) Payables to related parties

Line Items	Related Party Categories/Name	March 31, 2024	December 31, 2023	March 31, 2023
Trade payables	Associates/others	$ 26,474	$ 15,716	$ 10,167
Trade payables	Affiliated company of subsidiary’s investors main shareholder/others	$ -	$ 1,136	$ -
Trade payables	Related party in substance/others	$ 22	$ -	$ -

(6) Loans

January 1 to March 31, 2024

Type	Number or Name of Related Party	Highest balance	Ending Balance	Performance		Collateral contents	Differences in Transaction Terms Between Related and Nonrelated Parties
				Normal loans	Non-performing Loans
Employee consumer loans	2	$ 757	$ 695	$ 695	$ -	None	None
Self-used residential mortgage loans	12	65,892	64,366	64,366	-	Real estate	None
Secured loans	Key executives	5,657	3,901	3,901	-	Real estate	None
Secured loans	Others	6,352	4,133	4,133	-	Real estate	None

January 1 to March 31, 2023

Type	Number or Name of Related Party	Highest balance	Ending Balance	Performance		Collateral contents	Differences in Transaction Terms Between Related and Nonrelated Parties
				Normal loans	Non-performing Loans
Employee consumer loans	3	$ 1,948	$ 1,853	$ 1,853	$ -	None	None
Self-used residential mortgage loans	11	55,650	53,918	53,918	-	Real estate	None
Secured loans	Key executives	7,160	5,823	5,823	-	Real estate	None
Secured loans	Others	13,480	10,914	10,914	-	Real estate	None

Pursuant to Articles 32 and 33 of the Banking Law, no unsecured credit shall be granted to interested parties, except for consumer loans and loans to the government; secured credit shall be fully guaranteed and the terms and conditions thereof shall not be superior to those of other similar credit recipients.

(7) Deposits

January 1 to March 31, 2024

	Ending Balance	Range of interest rates	Interest Expense
Related party in substance	$ 1,536,372	0.00 - 1.57	$ 8,952
Key executives	8,288	0.00 - 7.95	82
Other Related party	164,226	0.00 - 7.95	1,243
	$ 1,708,886		$ 10,277

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	January 1 to March 31, 2023
	Ending Balance	Range of interest rates	Interest Expense
Related party in substance	$ 1,485,621	0.00 - 4.30	$ 8,197
Key executives	115,026	0.00 - 7.82	222
Other Related party	179,810	0.00 - 7.82	633
	$ 1,780,457		$ 9,052

Deposits do not differ materially from those of general customers, except for the interest rate on deposits from employees, which is 7.95% and 7.82% as of March 31, 2024 and 2023, respectively.

(8) Other operating expenses

Related Party Categories/Name	January 1 to March 31, 2024	January 1 to March 31, 2023
Related party in substance/others	$ 1,469	$ 1,516

The above amounts refer to the business expenses of Other, and the transaction prices between the Group and related parties are the same as those with non-related parties.

(9) Lease agreement

Lessor		Object		Period
Related party in substance		Office and parking space		1-4 years
Related party in substance		Land		5 - 20 years
Line Items	Related Party Categories/Name	March 31, 2024	December 31, 2023	March 31, 2023
Lease liabilities	Related party in substance/Shin Kong Textile Co., Ltd.	$ 220,072	$ 225,312	$ 240,751
Lease liabilities	Others/The Great Taipei Gas Corporation	$ 8,055	$ 8,401	$ 9,433
Related Party Categories/Name		January 1 to March 31, 2024	January 1 to March 31, 2023
Finance costs
Related party in substance/others		$ 593	$ 613
Other Related parties/Other		$ 39	$ 45

(10) Lease agreements

Operating lease

Lessee	Object	Period	Rental revenue
			January 1 to March 31, 2024	January 1 to March 31, 2023
Related party in substance/others	Buildings and parking spaces	2020.03.01 - 2030.02.28	$ 280	$ 281

(11) Loans from related parties

Related Party Categories/Name	March 31, 2024	December 31, 2023	March 31, 2023
Related party in substance/others	$ 250,000	$ 250,000	$ 150,000

Finance costs

Related Party Categories/Name	January 1 to March 31, 2024	January 1 to March 31, 2023h
Related party in substance/others	$ 1,078	$ 638

The interest rate of the Company's loans from related parties is comparable to the market interest rate.

(12) Compensation of key management personnel

	January 1 to March 31, 2024	January 1, 2023 to 31 March
Short-term employee benefits	$ 13,412	$ 38,894
Retirement benefits	430	407
Others	1,492	2,375
	$ 15,334	$ 41,676

41. PLEDGED ASSETS

The following assets of the Group have been provided to financial institutions as collaterals for various loans and purchase performance guarantees, and the details are as follows:

Guarantee Assets	Contents	March 31, 2024	December 31, 2023	March 31, 2023
Other current financial assets	Monetary deposits, time deposits, pledged time deposits and reserve accounts	$ 1,171,097	$ 1,487,783	$ 892,340
Other financial assets - non-current	Pledged time deposits	132,931	135,255	134,595
Financial assets at FVTOCI - current and non-current	Listed shares	3,567,091	3,671,421	3,376,964
Financial assets at amortized cost - non-current	Trust fund compensation provision	960,000	950,000	850,000
Property, plant and equipment and Investment Real estate	Land, buildings, machinery and equipment	5,793,746	5,902,852	5,823,331
		$ 11,624,865	$ 12,147,311	$ 11,077,230

The interest rate range of the above-mentioned pledged deposit certificates is 1.00% - 1.675%, 1.00% - 1.575% and 0.5% - 1.02% on March 31, 2024, December 31, 2023 and March 31, 2023, respectively.

42. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACTUAL COMMITMENTS

In addition to those disclosed in the notes to Other, information on significant contingent liabilities and unrecognized commitments at the end of the reporting period was as follows:

(1) Outstanding letters of credit as of March 31, 2024, December 31, 2023 and March 31, 2023 were as follows:

Currency	March 31, 2024	December 31, 2023	March 31, 2023
EUR	$ 70	$ 125	$ -
JPY	49,405	181,475	398,147
USD	5,889	5,289	7,502

(2) In addition to the commitment to undertake financial products described in Note 11, as of March 31, 2024, December 31, 2023, and March 31, 2023, the significant commitments and contingent liabilities of Taipei Star Bank were as follows:

(3) According to Article 17 of the Enforcement Rules of the Trust Enterprise Act, the Bank discloses the assets and liabilities of trust accounts and inventory of trust assets as follows:

Trust Account Balance Sheet
March 31, 2024

Trust Assets	Carrying Amount	Trust Liabilities	Carrying Amount
Bank deposit	$ 1,595,488	Trust capital
Short-term investments		Monetary trust	$ 4,206,064
Mutual funds	3,019,625	Securities trust	2,013,951
Securities	925,384	Real estate trust	10,716,195
Securities	1,480,063	Net loss	( 1,773)
Real estate		Deferred carry-over	( 1)
Land	6,767,456
Buildings and structures	46,386
Construction in progress	3,100,034
Trust Total assets	$ 16,934,436	Trust Total liabilities	$ 16,934,436

Income Statement of Trust Accounts
January 1 to March 31, 2024

	Carrying Amount
Trust income
Interest income	$ 191
	191
Expense from trust
Management fee	( 4 )
Insurance expense	( 1,705 )
Service fee	( 24 )
Taxes expense	( 227 )
Exchange expense	( 4 )
	( 1,964 )
Net loss before tax	( 1,773 )
Income tax expense	-
Net loss after tax	( $ 1,773 )

Trust account property Table of Contents
March 31, 2024

Invested in item	Carrying Amount
Bank deposit	$ 1,595,488
Short-term investments
Mutual funds	3,019,625
Bonds	925,384
Securities	1,480,063
Real estate
Land	6,767,456
Buildings and structures	46,386
Construction in progress	3,100,034
	$ 16,934,436

Trust Account Balance Sheet
March 31, 2023

Trust Assets	Carrying Amount	Trust Liabilities	Carrying Amount
Bank deposit	$ 1,303,193	Trust capital
Short-term investments		Monetary trust	$ 4,027,883
Mutual funds	3,123,652	Securities trust	1,918,104
Bonds	630,146	Real estate trust	9,190,512
Securities	1,545,188	Net loss	( 12,839)
Real estate		Deferred carry-over	-
Land	6,562,231
Buildings and structures	45,819
Construction in progress	1,913,431
Trust Total assets	$ 15,123,660	Trust Total liabilities	$ 15,123,660

Income Statement of Trust Accounts
January 1 to March 31, 2023

	Carrying Amount
Trust income
Interest income	$ 14
Expense from trust
Management fee	( 1,754 )
Insurance expense	( 2,323 )
Service fee	( 234 )
Taxes expense	( 8,539 )
Exchange expense	( 3 )
	( 12,853 )
Net loss before tax	( 12,839 )
Income tax expense	-
Net loss after tax	( $ 12,839 )

Trust account property Table of Contents
March 31, 2023

Invested in item	Carrying Amount
Bank deposit	$ 1,303,193
Short-term investments
Mutual funds	3,123,652
Bonds	630,146
Securities	1,545,188
Real estate
Land	6,562,231
Buildings and structures	45,819
Construction in progress	1,913,431
	$ 15,123,660

(4) The Group's employee was involved in New Site Group loan fraud case. The court determined that the Group jointly committed the crime of special fraud in the Banking Act and convicted the crime. In the fourth quarter of 2020, Yuanta Commercial Bank Co., Ltd. accused litigation of violating the employer's joint and several liabilities. Based on the opinion of lawyer, the Company estimates litigation liabilities by considering the potential responsibilities and the range of compensation amounts. Please refer to Note 28.

43. OTHER MATTER

On February 15, 2023, the President promulgated amendments to the Climate Change Response Act, which included provisions for imposing a carbon fee. Subsequently, on April 29, 2024, the Ministry of Environment announced draft regulations of "Carbon Fee Charge Measures", "Autonomous Reduction Plan Management Measures" and "Greenhouse Gas Reduction Designated Targets for Carbon Fee Collection". According to the draft Carbon Fee Collection Regulations, starting in 2024, electric power companies and large-scale manufacturing industries that meet the Ministry of Environment's criteria for inspection and registration, and whose total annual greenhouse gas emissions from direct emissions and indirect emissions generated by electricity use exceed 25,000 metric tons of carbon dioxide equivalent, will be required to pay a carbon fee.

According to the consolidated company's emissions in 2023, it is expected that 2024 will reach the above threshold and pay carbon fees. However, it's important to note that the above-mentioned draft regulations are still in the announcement stage, and the specific carbon fee rates have not been officially announced. As a result, the consolidated company cannot reasonably estimate the impact of the carbon fee at this time.

44. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

The following information was aggregated by the foreign currencies other than functional currencies of the group entities and the exchange rates between foreign currencies and respective functional currencies were disclosed. Significant foreign-currency assets and liabilities were as follows:

-81-

Unit: Foreign Currency (In Thousands)/NT $(In Thousands)

	March 31, 2024		December 31, 2023		March 31, 2023
	Foreign currencies	Exchange Rate	Foreign currencies	Exchange Rate	Foreign currencies	Exchange Rate
Financial assets
Monetary items
USD	$ 246,138	32.00	$ 589,695	30.705	$ 224,333	30.45
EUR	16,429	34.46	14,516	33.98	4,330	33.15
JPY	2,862,596	0.2115	1,593,697	0.2172	1,483,771	0.2288
RMB	11,769	4.089	8,122	4.327	13,972	4.431
Financial liabilities
Monetary items
USD	72,516	32.00	16,993	30.705	11,958	30.45
JPY	1,176,399	0.2115	1,024,948	0.2172	486,661	0.2288
EUR	33	34.46	210	33.98	326	33.15

Foreign exchange gains (Loss) (realized and unrealized) for the years ended March 31, 2024 and 2023 are $254,256 thousand and $(52,409) thousand, respectively. Due to the variety of foreign currency transactions and functional currencies of the Group entities, it is impossible to disclose foreign exchange gains and losses by each significant foreign currency.

45. DISCLOSURES ACCORDING TO REGULATIONS GOVERNING THE PREPARATION OF FINANCIAL REPORTS BY PUBLIC BANKS

(1) Financial instruments

a. Fair value of financial instruments not measured at fair value

Except as detailed in the following table, Taipei Star Bank considers that the carrying amounts of financial assets and financial liabilities recognized in the consolidated financial statements approximate their fair values; therefore, the fair value hierarchy is not disclosed.

March 31, 2024

	Amount	Fair Value Shares
		Level 1	Level 2	Level 3	Total
Financial assets
Financial assets at amortized cost - debt instruments	$ 18,308,358	$ 8,428,506	$ 9,388,824	$ 99,423	$ 17,916,753
Financial Liabilities
Financial liabilities at amortized cost
- Bonds payable	1,320,000	-	1,322,193	-	1,322,193

December 31, 2023

	Amount	Fair Value Shares
		Level 1	Level 2	Level 3	Total
Financial assets
Financial assets at amortized cost - debt instruments	$ 18,643,365	$ 8,350,347	$ 9,828,038	$ 99,343	$ 18,277,728
Financial Liabilities
Financial liabilities at amortized cost
- Bonds payable	1,320,000	-	1,322,620	-	1,322,620

March 31, 2023

	Amount	Fair Value Shares
		Level 1	Level 2	Level 3	Total
Financial assets
Financial assets at amortized cost - debt instruments	$ 17,780,127	$ 7,787,465	$ 9,321,054	$ 198,684	$ 17,307,203
Financial Liabilities
Financial liabilities at amortized cost
- Bonds payable	1,820,000	-	1,824,050	-	1,824,050

The fair values of the financial assets and financial liabilities included in the Level 2 and Level 3 categories above were determined in accordance with income approaches based on discounted cash flow analysis. The significant unobservable inputs used in the Level 3 fair value measurements were the discount rate that reflects the credit risk of counterparties and the cash flows that reflect the early repayment characteristics.

b. Fair value of financial instruments measured at fair value on a recurring basis

i. Fair value hierarchy

March 31, 2024

	Level 1	Level 2	Level 3	Total
Financial assets at FVTPL
Derivative	$ -	$ 478,734	$ -	$ 478,734
Notes investments	549,346	-	-	549,346
	$ 549,346	$ 478,734	$ -	$ 1,028,080
Financial assets at FVTOCI
Investments in equity instruments at FVTOCI	$ 660,198	$ -	$ 45,058	$ 705,256
Investments in debt instruments at FVTOCI	3,550,484	1,472,799	-	5,023,283
	$ 4,210,682	$ 1,472,799	$ 45,058	$ 5,728,539
Financial liabilities at FVTPL
Derivative	$ -	($ 9,203)	$ -	($ 9,203)
December 31, 2023
	Level 1	Level 2	Level 3	Total
Financial assets at FVTPL
Derivative	$ -	$ 741,543	$ -	$ 741,543
Notes investments	249,749	-	-	249,749
	$ 249,749	$ 741,543	$ -	$ 991,292
Financial assets at FVTOCI
Investments in equity instruments at FVTOCI	$ 536,288	$ -	$ 39,852	$ 576,140
Investments in debt instruments at FVTOCI	2,006,398	1,223,986	-	3,230,384
	$ 2,542,686	$ 1,223,986	$ 39,852	$ 3,806,524
Financial liabilities at FVTPL
Derivative	$ -	($ 10,223)	$ -	($ 10,223)

March 31, 2023

	Level 1	Level 2	Level 3	Total
Financial assets at FVTPL
Derivative	$ -	$ 588,539	$ -	$ 588,539
Notes investments	199,756	-	-	199,756
	$ 199,756	$ 588,539	$ -	$ 788,295
Financial assets at FVTOCI
Investments in equity instruments at FVTOCI	$ 483,624	$ -	$ 41,799	$ 525,423
Investments in debt instruments at FVTOCI	1,040,754	1,262,579	-	2,303,333
	$ 1,524,378	$ 1,262,579	$ 41,799	$ 2,828,756
Financial liabilities at FVTPL
Derivative	$ -	($ 7,281)	$ -	($ 7,281)

There was no transfer between Level 1 and Level 2 Fair value from January 1 to March 31, 2024 and 2023.

ii. Reconciliation of Level 3 fair value measurements of financial instruments

January 1 to March 31, 2024

Financial assets	Financial Assets at FVTOCI
	Equity Instruments
Equity at January 1	$ 39,852
Recognized in other comprehensive income (included in unrealized gain (loss) on financial assets at FVTOCI)	5,206
Ending Balance	$ 45,058

January 1 to March 31, 2023

Financial assets	Financial Assets at FVTOCI
	Equity Instruments
Equity at January 1	$ 37,951
Recognized in other comprehensive income (included in unrealized gain (loss) on financial assets at FVTOCI)	3,848
Ending Balance	$ 41,799

iii. Valuation techniques for fair value measurement

Financial instruments at fair value through profit or loss and financial assets at fair value through other comprehensive income or loss are fairly valued at quoted market prices if there is an active market for the financial instruments; financial instruments without quoted price in an active market are estimated by valuation methods. The estimates and assumptions used by Taipei Star Bank for financial instrument valuation is consistent with those used by other market participants in pricing of financial instruments. Fair values of derivatives that have no quoted

market prices in an active market are calculated using the discounted cash flow method, the fair value of each individual contract is calculated based on the exchange rates quoted by Reuters on each settlement date.

iv. Valuation techniques and inputs applied for Level 2 fair value measurement

Financial Instruments	Valuation Techniques and Inputs
Derivatives - foreign exchange forward contracts	Based on the exchange rates quoted by Reuters on each settlement date.
Derivatives - convertible bond asset swap	The value of convertible bond asset swap is the conversion price plus the fixed income value minus the conversion option value. The average price is input into the SYSTEX information system to calculate the value of the convertible bond asset swap and convertible option. The interbank overnight call loan rate, TAIBIR and IRS from Bloomberg are input into the SYSTEX information system to calculate the discounted fixed income.
Investments in debt instruments	Based on market quoted prices or prices quoted by Bloomberg.

v. Valuation techniques and inputs applied for Level 3 fair value measurement

Financial Instruments	Valuation Techniques and Inputs
Unlisted equity securities - ROC	Discounted cash flow. The cash dividends and parameters are discounted using the discounted cash flow method with the relevant discount taken into account.

vi. Sensitivity analysis of reasonable possible alternative assumptions for Level 3 fair value measurement

The significant unobservable inputs of the income approach used by Taipei Star Bank are the discount rate, non-controlling interests discount rate and the liquidity discount ratio. The relevant sensitivity analysis is as follows:

Unit: NT $thousands

March 31, 2024
Significant Unobservable Input	Range of Changes	Affected Amount
Discount rate	1% increase $	( 2,094 )
	1% decrease	2,600
Discount for lack of marketability	10% increase	( 5,590 )
	10% decrease	5,590
December 31, 2023
---	---	---
Significant Unobservable Input	Range of Changes	Affected Amount
Discount rate	1% increase $	($ 1,965)
	1% decrease	2,432
Discount for lack of marketability	10% increase	( 5,115)
	10% decrease	5,115

arch 31, 2023

Significant Unobservable Input	Range of Changes	Affected Amount
Discount rate	1% increase $	($ 1,977)
	1% decrease	2,446
Discount for lack of marketability	10% increase	( 5,185)
	10% decrease	5,185

c. Categories of financial instruments

	March 31, 2024	December 31, 2023	March 31, 2023
Financial assets
Financial assets at FVTPL	$ 1,028,080	$ 991,292	$ 788,295
Financial Assets at FVTOCI	5,728,539	3,806,524	2,828,756
Financial assets at amortized cost (a)	81,824,535	82,661,700	81,525,841
Financial Liabilities
Financial assets at FVTPL	9,203	10,223	7,281
Amortized cost (b)	82,880,497	81,746,411	79,431,803

Note 1: Balances include cash and cash equivalents, due from the central bank and call loans to other banks, debt instrument investments measured at amortized cost, bills and bonds purchased under resale agreements, receivables, discounting and loans, and margin deposits measured at amortized cost as financial assets.

Note 2: Balances include due to the central bank and other banks, central bank and interbank financing, notes and bonds issued under repurchase agreement, payables, deposits and remittances, financial bond payables, and guarantee deposits received at amortized cost as financial liabilities.

(2) Financial risk management objectives and policies

Taipei Star Bank has established risk management policies and procedures, which cover the risk management organizational structure and responsibilities, risk management procedures, management mechanisms for various types of risks, and risk management information systems. The rules had been approved by the board of directors (including credit risks, market risks, operation risks, liquidity risks and national risks).

Taipei Star Bank has a Risk Management Committee and a Risk Management Department, which delegates risk authority and authorities to relevant departments to ensure the smooth operation of risk management. Chief Executive Officer as the chairman of the Risk Management Committee, and Vice Chief Executive Officer as a substitute. Risk Management Committee takes charge of risk management as follows:

Monitoring capital adequacy.
Measurement and monitoring of liquidity risks.
Risk management of every business segment.
Assessment of asset quality, classification and loss allowance.
Information security protection mechanism and emergency response plan.
Planning, proposal and assessment of risk management policies.
Reporting implementation status of risk management to the board of directors.

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In order to implement risk management, planning, execution, communication, coordination and related management, in addition to the existing risk management unit, the committee may assign special personnel to handle specific risk management work.

The members of the Risk Management Committee establish risk measurement indicators based on the nature and scope of their departmental business and report them to the Risk Management Committee, providing reference for senior management decision-making.

a. Market risk

Taipei Star Bank holds fixed-rate bonds, notes, loans, and similar financial instruments, and their fair values change due to market interest rate fluctuations on the balance sheet date.

Sensitivity analysis

i. Interest rate risk

Assuming other factors remain constant, if the yield curve for all global markets rises by 100 basis points, Taipei Star Bank's pre-tax income for March 31, 2024, December 31, 2023, and March 31, 2023, will decrease by NT$421 thousand, NT$515 thousand, and NT$221 thousand, respectively. other comprehensive income items will decrease by NT$243,462 thousand, NT$112,893 thousand, and NT$66,679 thousand, respectively.

ii. Foreign currency risk

Assuming other factors remain constant, if USD/NTD and CNY/NTD exchange rates each appreciate by 3%, Taipei Star Bank's pre-tax income for March 31, 2024, December 31, 2023, and March 31, 2023, will increase by NT$14,701 thousand, NT$11,964 thousand, and NT$13,705 thousand, respectively. other comprehensive income items will increase by NT$56,215 thousand, NT$26,935 thousand, and NT$13,805 thousand, respectively.

iii. Equity price risk

Assuming other factors remain constant, if equity securities prices rise by 15%, Taipei Star Bank's other comprehensive income items for March 31, 2024, December 31, 2023, and March 31, 2023, will increase by NT$105,788 thousand, NT$86,421 thousand, and NT$78,814 thousand, respectively.

iv. Sensitivity analysis is compiled as follows:

Unit: NT $thousands

March 31, 2024
Main Risk	Range of Changes	Affected Amount
		Equity	Profit or loss
Interest rate risk	Interest rate curve rises 100BPS	(243,883)	(421)
Interest rate risk	Interest rate curve drops 100BPS	243,883	421
Foreign currency risk	USD/NTD and CNY/NTD strengthen 3%	70,916	14,701
Foreign currency risk	USD/NTD and CNY/NTD weakening 3%	(70,916)	(14,701)
Equity price risk	Equity price higher 15%	105,788	-
Equity price risk	Equity price lower 15%	(105,788)	-

December 31, 2023
Main Risk	Range of Changes	Affected Amount
		Equity	Profit or loss
Interest rate risk	Interest rate curve rises 100 BPS	(113,408)	(515)
Interest rate risk	Interest rate yield lower 100BPS	113,408	515
Foreign currency risk	USD/NTD and CNY/NTD strengthen 3%	38,899	11,964
Foreign currency risk	USD/NTD and CNY/NTD weakening 3%	(38,899)	(11964)
Equity price risk	Equity price higher 15%	86,421	-
Equity price risk	Equity price lower 15%	(86,421)	-
March 31, 2024
---	---	---	---
Main Risk	Range of Changes	Affected Amount
		Equity	Profit or loss
Interest rate risk	Interest rate curve rises 100BPS	(66,900)	(221)
Interest rate risk	Interest rate curve drops 100BPS	66,900	221
Foreign currency risk	USD/NTD and CNY/NTD strengthen 3%	27,510	13,705
Foreign currency risk	USD/NTD and CNY/NTD weakening 3%	(27,510)	(13,705)
Equity price risk	Equity price higher 15%	78,814	-
Equity price risk	Equity price lower 15%	(78,814)	-

b. Interest rate risk

i. Definition of interest rate risk

Interest rate risk refers to the risk of changes in interest rates resulting in changes in the fair value of the interest rate risk position held by Taipei Star Bank or loss of earnings. The main sources of risk include deposits and interest rate-related securities.

ii. Measurement methods and management procedures

Taipei Star Bank regularly reports the monitoring results to the Risk Management Committee and the Board of Directors, and makes timely adjustments based on the overall operating conditions.

iii. The effect of interest rate benchmark reform

Taipei Star Bank's exposures to interest rate benchmark reform include USD LIBOR. It is expected that the US Secured Overnight Financing Rate (SOFR) will replace the USD LIBOR. However, there is a fundamental difference between the replacement interest rate and LIBOR. LIBOR is a forward-looking interest rate indicator that implies market expectations for future interest rate trends and includes inter-bank credit discounts. Each alternative interest rate is a retrospective interest rate indicator calculated with reference to actual transaction data, which does not include a credit discount. Therefore, when an existing contract is modified from a linked LIBOR to a linked alternative interest rate, additional adjustments must be made to the aforementioned differences to ensure that the interest rate basis before and after the modification is economically equivalent.

Taipei Star Bank has formulated a LIBOR conversion plan to deal with risk

management policy adjustments, internal process adjustments, and information system updates required to meet the reform of interest rate indicators. Taipei Star Bank does not issue financial products linked to LIBOR, and the financial products underwritten by it are all adjusted in accordance with the issuer's instructions. Taipei Star Bank is based on the existing information system and internal processes, which is sufficient to cope with this change. After internal assessment of risk and evaluation models, financial reporting and taxation, there is no need to carry out related operations. The financial products sold by Taipei Star Bank will be announced in cooperation with the issuer, and explain the impact with the counterparty, and cooperate with the contract conversion if necessary.

Interest rate benchmark reform mainly exposes Taipei Star Bank to basic interest rate risk. If Taipei Star Bank fails to complete the contract modification with the counterparty of the financial instrument before the cessation of LIBOR, it will cause significant uncertainties to the interest rate basis applicable to the financial instrument in the future, and trigger Taipei Star Bank's original unexpected interest rate risk exposure.

The following table contains details of all of the financial instruments held by Taipei Star Bank that are subject to the reform and have not transitioned to an alternative benchmark interest rate:

March 31, 2024

	Amount
Non-derivative Financial	Financial assets	Financial Liabilities
Financial assets at amortized cost USD LIBOR	$ 127,960	$ -

December 31, 2023

	Amount
Non-derivative Financial	Financial assets	Financial Liabilities
Financial assets at amortized cost USD LIBOR	$ 123,990	$ -

March 31, 2023

	Amount
Non-derivative Financial	Financial assets	Financial Liabilities
Financial assets at FVTOCI USD LIBOR	$ 91,362	$ -
Financial assets at amortized cost USD LIBOR	308,463	-
Total	$ 399,825	$ -

c. Credit risk

The financial instruments held or issued by Taipei Star Bank may cause losses due to the failure of the counterparty or other party to fulfill its contractual obligations. When offering loans, loan commitments and guarantees, Taipei Star Bank adopts cautious approach in the assessment process. Loans secured by collateral accounted for 97%, 97% and 95% of total loans as of March 31, 2024, December 31, 2023 and March 31, 2023, respectively. The required collateral is usually real estate, cash, marketable

securities or other property, etc. The collateral typically requested includes real estate, cash, marketable securities, or other assets. When counterparties or other parties default, Taipei Star Bank has the right to enforce collateral or other guarantees, effectively reducing credit risk. However, when disclosing the maximum credit exposure, the fair value of the collateral is not considered.

i. Credit risk management procedures

The credit risk management procedures and measurement methods of Taipei Star Bank’s main businesses are as follows:

A. Credit granting business

For discounting and loans, Taipei Star Bank recognizes expected credit losses based on a 12-month period if credit risk remains normal. If credit risk has significantly increased or there is default or credit impairment, expected credit losses are recognized based on the remaining period. Taipei Star Bank assesses the credit quality of discounting and loans as follows:

Determination that credit risk has increased significantly since initial recognition

Taipei Star Bank evaluates the risk of default occurring during the expected remaining period for various credit assets to determine whether credit risk has significantly increased since initial recognition. To make this assessment, reasonable and verifiable information indicating a significant increase in credit risk since initial recognition is considered. Key indicators include:

Quantitative indicators

When the contract payment is overdue for a certain period of time.

Qualitative indicators

The actual or expected significant changes in the operating results of the debtors.
Adverse changes in the existing or forecasted business, financial, or economic conditions that significantly affect the credit customer’s ability to fulfill debt obligations.

Definition of credit-impaired and defaulted financial assets

If one or more of the following conditions are met, Assets determines that the credit Assets has defaulted and is credit-impaired:

Quantitative indicators

Loans that met the definition of overdue loans in accordance with “Non-performing loans from Regulations Governing the Procedures for Banking Institutions to Evaluate Assets and Deal with Non-performing/Non-accrual Loans”.

Qualitative indicators

If there is evidence that the borrower will not be able to pay the amount, or that the borrower has significant financial difficulties, such as:

Borrower met the requirements of exemption from reporting in accordance with “Nonperforming loans from Regulations Governing the Procedures for Banking”.
Negotiation, rehabilitation, and liquidation cases in accordance with the

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Consumer Debt Clearance Act.

Do not belong to the aforementioned non-performing loans, but showing signs of significant financial difficulties or bad credit records such as the following:

(a) The credit recipient has been notified of the ticket refund record by Taipei Star Bank or has been rejected for transaction announcement.
(b) The borrower's enterprise or its responsible person has overdue loans with other financial institutions.
(c) The person in charge of the credit granting business or investment business or its affiliated enterprises has gone bankrupt.
(d) The "credit maintenance ratio" of the whole account of the returned or pledged stocks to the "minimum notified recovery maintenance ratio" was not made up to the "credit maintenance ratio" within the prescribed period after the issuance of the letter of notification.
(e) Situations where the pledged collateral of the debtor is seized by another bank, receivables have been reclassified as overdue receivables by another financial institution, debtor has filed for bankruptcy, reorganization, or other debt clearance proceedings, or when the auditor has issued an opinion expressing material uncertainty over the Company's ability to continue as a going concern.

The above definitions of default and credit impairment apply to all financial assets held by Taipei Star Bank and are consistent with the definitions used for internal credit risk management purposes, also applied in relevant impairment assessment models.

Measurement of ECLs

For the measurement of expected credit loss, Taipei Star Bank classified the credit assets based on credit risk characteristics such as purpose of borrowings, industry characteristics, type of collateral, and borrowing status into the following groups:

Business	Credit risk group
Operate Banking	Corporate banking State-owned enterprises
Pledge deposits
Corporate Banking-Secured	SME Credit Guarantee
Small and medium enterprises - non-credit guaranteed
Non-SMEs
Corporate Banking-unsecured	Small and medium enterprises - non-credit guaranteed
Non-SMEs
Consumer Banking-Business	Pledge deposits
Consumer Banking-Secured	Real estate
Pledged shares
Others
Consumer Banking-unsecured	Bills financing
Consumer credit
Self-negotiated and settled
Consumer debt negotiation and rehabilitation
Others

Taipei Star Bank measures the loss allowance for a financial instrument at an

amount equal to 12-month expected credit losses when the credit risk on that financial instrument has not increased significantly since initial recognition and recognizes lifetime expected credit losses when there has been a significant increase in credit risk since initial recognition.

To measure the expected credit losses, Taipei Star Bank considers the probability of default (PD) of the debtors in the next 12 months and the duration, and includes the loss given default (LGD), multiplied by the exposure at default (EAD), and considers the impact of the time value of money, and calculates the expected credit losses for 12 months and the duration.

The probability of default is the loss ratio caused by the default of the debtor. The probability of default and loss given default used in the impairment assessment of the credit business of Taipei Star Bank are based on internal historical information (such as credit loss experience, etc.) of each combination and adjusted historical data based on current observable data and forward-looking general economic information, and calculated by the grouping direct estimation method.

Taipei Star Bank estimates the EAD of loans using the grouping and estimation method. In addition, Taipei Star Bank estimates the 12-month ECLs and Lifetime ECLs of loan commitments by considering the portion of the loan commitments expected to be used within 12 months after the reporting date and within the expected lifetime based on the grouping and estimation method to determine the amount of EAD for calculating expected credit losses.

Forward-looking information

Taiwan GDP growth rate and Taiwan unemployment rate are used as the judgment criteria, and the default probability is adjusted based on the indicators, which is then included in the overall expected credit loss allowance loss assessment.

B. Investments in debt instruments

Taipei Star Bank considers the historical default rates of each credit rating supplied by external rating agencies to measure 12-month or lifetime expected credit losses.

Determination that credit risk has increased significantly since initial recognition

Taipei Star Bank assesses the change in the risk of default in the expected duration of each type of debt instrument investment on each reporting date to determine whether the credit risk has increased significantly since the original recognition. For this assessment, reasonable and corroborative information that indicates that credit risk has increased significantly is taken into consideration, the main indicators include:

Quantitative indicators

Taipei Star Bank determines that the credit risk of a debt instrument has increased significantly since initial recognition based on the changes in external credit ratings at the reporting date. The three stages of impairment are as follows:

Stage 1 (Low credit risk or no significant increase in credit risk): The

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credit rating has not changed, and does not meet the definition of Stage 2 and Stage 3.

Stage 2 (Significant increase in credit risk): Downgrading from investment grade to non-investment grade (excluding Ca~D) or from Ba1~Ba3 to B1~Caa3. Investment grade refers to long-term ratings of Baa3/BBB-/BBB- by qualified external credit rating agencies.
Stage 3 (Credit-impaired): Downgrading to default grade (Ca~D) or failure to repay principal and interest when due.

Measurement of ECLs

The measurement of ECLs of debt instruments will be done on a group basis based on the nature of the products.
Comparing the risk of default of debt instruments on the reporting date with the risk of default at the time of initial recognition, and considering the reasonable and supportable information showing that the credit risk has increased significantly since the initial recognition to determine whether the credit risk of the financial instruments has increased significantly since the initial recognition.

(a) For "normal credit risk conditions", the expected loss amount is estimated based on the one-year default probability (PD).

(b) For "significant increase in credit risk," the expected credit loss amount is estimated using the cash flow method if the contractual cash flows (i.e., the amount of default exposure for each period) can be estimated by taking into account the duration of the asset item and calculating the probability of default (PD) for each of the duration of the asset item.

(c) For "abnormal credit risk profile", the default rate is considered to be 100%, and the default rate for each continuing period is no longer considered. Instead, only the related recoverable amount is considered in the subsequent evaluation of the overall expected credit loss.

(d) The default probability of debt instrument investment is based on the values regularly issued by external credit rating agencies, and the default loss rate of different repayment sequences and unsecured products is calculated.

ii. Credit risk hedging or mitigation policies

A. Collateral

Taipei Star Bank has a series of policies and measures for credit businesses to reduce credit risk. One of the commonly used methods is to require borrowers to provide collateral. To secure the loans, Taipei Star Bank manages and assesses the collateral based on the procedures that suggest the scope of collateralization and valuation of collateral and the process of disposal. In credit contracts, Taipei Star Bank stipulates the security mechanism for loans and the conditions and terms for collateral and offsetting to state clearly that Taipei Star Bank reserves the right to reduce the limit granted or to reduce the repayment period in order to reduce the credit risks.

Taipei Star Bank closely observes the value of collateral for financial instruments and considers credit-impaired financial assets for impairment.

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Information on financial assets that are impaired and the value of collaterals to mitigate potential losses are summarized below:

	Gross carrying amount	Loss allowance	Total risk exposure (Amortized cost)	Collateral Fair Value
Impaired Assets:
Receivables
—Credit card business	$ -	$ -	$ -	$ -
—Other	959	(80)	879	-
Discounts and loans	226,079	(16,532)	209,547	209,547
Total amount of credit-impaired financial assets	$ 227,038	($ 16,612)	$ 210,426	$ 209,547

B. Credit risk concentration limits and control

To avoid the excessive concentration of risks, the Taipei Star Bank credit-related guidelines have set limits on the credit balance of a single counterparty and a single group. The investment guidelines and regulations for the control of equity investment risks have set various investment limits for the same person (enterprise) or the same affiliated enterprise (group). To manage the concentration risk on the assets, Taipei Star Bank set credit limits by industry, conglomerate, country, transactions collateralized by shares, and other categories and integrated within one system the supervision of concentration of credit risk in these categories.

C. Other credit enhancements

Taipei Star Bank stipulates a deposit offset clause in the credit contract, which clearly defines that upon the occurrence of a credit event, the various deposits of the debtors with Taipei Star Bank may be offset to cover their liabilities in order to reduce credit risk.

iii. Credit risk exposure

The credit risk amount is evaluated based on the positive fair value at the end of the reporting period and the off-balance sheet commitments and guarantees.

Except for off-balance sheet credit risk exposure, the maximum credit risk exposures of various financial instruments held by the Taipei Star Bank are the same as the per-book amounts.

A. Off-balance sheet credit exposure

	March 31, 2024	December 31, 2023	March 31, 2023
Commitments	$ 20,086,591	$ 20,715,719	$ 19,418,189
Guarantees	665,000	705,000	95,700
Letters of credit	578	5,976	40,558

B. Concentration of credit risk

Concentrations of credit risk arise when a number of counterparties or exposure have comparable economic characteristics, or such counterparties are engaged in similar activities, or operate in the same geographical areas or industry sectors so that their collective ability to meet contractual obligations is uniformly affected by changes in economic or other conditions. The emergence of concentrations of credit risk includes the operating activities property of the debtor. Taipei Star Bank does not significantly concentrate on a single customer or a single transaction counterparty but has a similar counterparty, industry type and local region. The contract amount of

significant concentration of credit risk and its maximum credit risk exposure are as follows:

Industry type	March 31, 2024	December 31, 2023	March 31, 2023
natural person	$ 35,268,935	$ 35,844,684	$ 35,307,051
Real estate	12,982,210	12,755,105	13,210,712
Manufacturing	374,286	411,503	761,214
Wholesale, retail and restaurants	2,191,645	2,060,906	1,890,848
Construction industry	809,956	837,400	823,494
Others	4,450,498	4,310,533	4,434,251
	$ 56,077,530	$ 56,220,131	$ 56,427,570
Local Area	March 31, 2024	December 31, 2023	March 31, 2023
Domestic	$ 56,076,951	$ 56,214,155	$ 56,341,331
Overseas	579	5,976	86,239
	$ 56,077,530	$ 56,220,131	$ 56,427,570

iv. Credit quality information

Certain financial assets held by Shui Hing Bank, such as cash and cash equivalents, deposits and borrowings with banks, financial assets at fair value through profit or loss, bills and bonds purchased under resale agreements, and refundable deposits, etc., have been reviewed as low credit risks due to the favorable credit ratings of the counter-parties to the transactions. In addition to the above-mentioned assets, credit quality analyzes on other financial assets were as follows:

A. Credit quality analysis of discounts, loans and receivables

March 31, 2024

	Discounts and loans
	Stage 1	Stage 2	Stage 3
	12-month expected Credit losses	Duration Credit losses	Credit impairment Financial assets	Difference of Impairment Loss Recognized	Total
Gross carrying amount	$53,983,997	$1,201,876	$226,079	$-	$55,411,952
Loss allowance	(30,630)	(3,732)	(16,532)	-	(50,894)
Difference of impairment loss under regulations	-	-	-	($88,964)	($88,964)
Total	$53,953,367	$1,198,144	$209,547	($88,964)	$54,772,094
	Other Financial Assets
	Stage 1	Stage 2	Stage 3
	12-month expected Credit losses	Duration Credit losses	Credit impairment Financial assets	Difference of Impairment Loss Recognized	Total
Gross carrying amount	$7,247,846	$2,900	$959	$-	$7,251,705
Loss allowance	(37)	(3)	(80)	-	(120)
Difference of impairment loss under regulations	-	-	-	($792)	($792)
Total	$7,247,809	$2,897	$879	($792)	$7,250,793

Note: The above receivables and other financial assets include due from the Central Bank and call loans to banks, bills and bonds purchased under resale agreements, interest receivables, securities settlement receivables other receivables and guarantee deposits paid, etc.

Off-balance sheet credit commitments

	Stage 1	Stage 2	Stage 3
	12-month expected Credit losses	Duration Credit losses	Credit impairment Financial assets	Difference of Impairment Loss Recognized	Total
Gross carrying amount	$ 667,178	$ -	$ -	$ -	$ 667,178
Loss allowance	( 794)	-	-	-	( 794)
Difference of impairment loss under regulations	-	-	-	( 5,878)	( 5,878)
Total	$ 666,384	$ -	$ -	($ 5,878)	$ 660,506

December 31, 2023

	Discounts and loans
	Stage 1	Stage 2	Stage 3
	12-month expected Credit losses	Duration Credit losses	Credit impairment Financial assets	Difference of Impairment Loss Recognized	Total
Gross carrying amount	$53,926,379	$1,446,909	$ 135,867	$ -	$55,509,155
Loss allowance	( 36,312)	( 4,821)	( 9,885)	-	( 51,018)
Difference of impairment loss under regulations	-	-	-	( 577,863)	( 577,863)
Total	$53,890,067	$1,442,088	$ 125,982	($ 577,863)	$54,880,274

Other Financial Assets

	Stage 1	Stage 2	Stage 3
	12-month expected Credit losses	Duration Credit losses	Credit impairment Financial assets	Difference of Impairment Loss Recognized	Total
Gross carrying amount	$6,786,999	$ 3,359	$ 430	$ -	$6,790,788
Loss allowance	( 44)	( 4)	( 36)	-	( 84)
Difference of impairment loss under regulations	-	-	-	( 830)	( 830)
Total	$6,786,955	$ 3,355	$ 394	($ 830)	$6,789,874

Note: The above receivables and other financial assets include due from the Central Bank and call loans to banks, bills and bonds purchased under resale agreements, loan interest receivables, securities settlement receivables, other receivables and guarantee deposits paid, etc.

Off-balance sheet credit commitments

	Stage 1	Stage 2	Stage 3
	12-month expected Credit losses	Duration Credit losses	Credit impairment Financial assets	Difference of Impairment Loss Recognized	Total
Gross carrying amount	$ 712,576	$ -	$ -	$ -	$ 712,576
Loss allowance	( 10)	-	-	-	( 10)
Difference of impairment loss under regulations	-	-	-	( 7,116)	( 7,116)
Total	$ 712,566	$ -	$ -	($ 7,116)	$ 705,450

March 31, 2023

Discounts and loans

	Stage 1	Stage 2	Stage 3
	12-month expected Credit losses	Duration Credit losses	Credit impairment Financial assets	Difference of Impairment Loss Recognized	Total
Gross carrying amount	$55,021,304	$1,100,487	$ 169,521	$ -	$56,291,312
Loss allowance	(41,599)	(5,189)	(11,903)	-	(58,691)
Difference of impairment loss under regulations	-	-	-	(594,108)	(594,108)
Total	$54,979,705	$1,095,298	$ 157,618	($ 594,108)	$55,638,513

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Other Financial Assets

	Stage 1	Stage 2	Stage 3
	12-month expected Credit losses	Duration Credit losses	Credit impairment Financial assets	Difference of Impairment Loss Recognized	Total
Gross carrying amount	$6,750,792	$ 2,940	$ 520	$ -	$6,754,252
Loss allowance	( 42)	( 3)	( 43)	-	( 88)
Difference of impairment loss under regulations	-	-	-	( 669)	( 669)
Total	$6,750,750	$ 2,937	$ 477	($ 669)	$6,753,495

Note: The above receivables and other financial assets include due from the Central Bank and call loans to banks, bills and bonds purchased under resale agreements, interest receivables, securities settlement receivables, other receivables and guarantee deposits paid, etc.

Off-balance sheet credit commitments

	Stage 1	Stage 2	Stage 3
	12-month expected Credit losses	Duration Credit losses	Credit impairment Financial assets	Difference of Impairment Loss Recognized	Total
Gross carrying amount	$ 136,258	$ -	$ -	$ -	$ 136,258
Loss allowance	-	-	-	-	-
Difference of impairment loss under regulations	-	-	-	( 1,457)	( 1,457)
Total	$ 136,258	$ -	$ -	($ 1,457)	$ 134,801

B. Analysis of credit quality of marketable securities

Credit quality of debt instruments

Investments of Taipei Start Bank in debt instruments were classified as at FVTOCI and as at amortized cost:

March 31, 2024	At FVTOCI	At amortized cost
Gross carrying amount	$ 5,080,057	$ 18,312,371
Loss allowance	( 2,636 )	( 4,013 )
Amortized cost	5,077,421	18,308,358
Adjustments to fair value	( 54,138 )	-
	$ 5,023,283	$ 18,308,358
December 31, 2023	At FVTOCI	At amortized cost
---	---	---
Gross carrying amount	$ 3,273,156	$ 18,647,792
Loss allowance	( 2,238 )	( 4,427 )
Amortized cost	3,270,918	18,643,365
Adjustments to fair value	( 40,534 )	-
	$ 3,230,384	$ 18,643,365
March 31, 2023	At FVTOCI	At amortized cost
---	---	---
Gross carrying amount	$ 2,363,610	$ 17,784,718
Loss allowance	( 1,436 )	( 4,591 )
Amortized cost	2,362,174	17,780,127
Adjustments to fair value	( 58,841 )	-
	$ 2,303,333	$ 17,780,127

Taipei Star Bank's current credit risk rating mechanism and the total carrying amounts of investments in debt instruments of various credit ratings were as follows:

March 31, 2024

Credit Rating	Definition	Basis for Recognizing Expected Credit Losses	Expected credit Loss ratio	Gross carrying amount
Stage1 (Low credit risk or no significant increase in credit risk)	The credit rating did not change and did not meet the definition of Stage2 and Stage3	12-month ECLs	0.00% - 0.40%	$ 23,392,428
Stage2 (significant increase in credit risk)	Those whose investment grade has dropped to non-investment grade (excluding Ca - D), those whose investment grade has dropped from Ba1 - Ba3 to B1 - Caa3, and those whose initial recognition has been B1 - Caa3. Investment grade assets refer to foreign qualified external credit rating institutions with long-term ratings of Baa3/BBB-/BBB-	Lifetime expected credit losses (Not credit impaired)	-	-
Stage3 (Credit impaired)	Credit rating has been downgraded to the default level (Ca - D), and the principal and interest have not been paid at the maturity date.	Lifetime expected credit losses (Credit impaired)	-	-

December 31, 2023

Credit Rating Description	Definition	Basis for Recognizing Expected Credit Losses	Expected credit Loss ratio	Gross carrying amount
Stage1 (Low credit risk or no significant increase in credit risk)	The credit rating did not change and did not meet the definition of Stage2 and Stage3	12-month ECLs	0.00% - 0.40%	$ 21,920,948
Stage2 (significant increase in credit risk)	Those whose investment grade has dropped to non-investment grade (excluding Ca - D), those whose investment grade has dropped from Ba1 - Ba3 to B1 - Caa3, and those whose initial recognition has been B1 - Caa3. Investment grade assets refer to foreign qualified external credit rating institutions with long-term ratings of Baa3/BBB-/BBB-	Lifetime expected credit losses (Not credit impaired)	-	-
Stage3 (Credit impaired)	Credit rating has been downgraded to the default level (Ca - D), and the principal and interest have not been paid at the maturity date.	Lifetime expected credit losses (Credit impaired)	-	-

March 31, 2023

Credit Rating Description	Definition	Basis for Recognizing Expected Credit Losses	Expected credit Loss ratio	Gross carrying amount
Stage1 (Low credit risk or no significant increase in credit risk)	The credit rating did not change and did not meet the definition of Stage2 and Stage3	12-month ECLs	0.00% - 0.30%	$ 20,148,328
Stage2 (significant increase in credit risk)	Those whose investment grade has dropped to non-investment grade (excluding Ca - D), those whose investment grade has dropped from Ba1 - Ba3 to B1 - Caa3, and those whose initial recognition has been B1 - Caa3. Investment grade assets refer to foreign qualified external credit rating institutions with long-term ratings of Baa3/BBB-/BBB-	Lifetime expected credit losses (Not credit impaired)	-	-
Stage3 (Credit impaired)	Credit rating has been downgraded to the default level (Ca - D), and the principal and interest have not been paid at the maturity date.	Lifetime expected credit losses (Credit impaired)	-	-

The movements of the loss allowance of investments in debt instruments measured at amortized cost and at FVTOCI under Taipei Star Bank are summarized by credit rating under Other comprehensive income are as follows:

January 1 to March 31, 2024

	Credit Rating Description
Information on changes in loss allowance summarized by credit risk rating	Stage1 (12-month ECL)	Stage2 (Lifetime ECL-not credit-impaired)	Stage3 (Lifetime expected credit losses with credit impairment)
Equity at January 1	$ 6,665	$ -	$ -
Credit rating changes	-	-	-
New financial assets purchased	425	-	-
Derecognition	( 5 )	-	-
Change in exchange rates or others	( 436 )	-	-
Ending Balance	$ 6,649	$ -	$ -

January 1 to March 31, 2023

	Credit Rating Description
Information on changes in loss allowance summarized by credit risk rating	Stage1 (12-month ECL)	Stage2 (Lifetime ECL-not credit-impaired)	Stage3 (Lifetime expected credit losses with credit impairment)
Equity at January 1	$ 6,101	$ -	$ -
Changes in credit ratings of debt instruments recognized at the beginning of the period
- Normal to abnormal	-	-	-
New financial assets purchased	-	-	-
Derecognition	-	-	-
Change in exchange rates or others	( 74 )	-	-
Ending Balance	$ 6,027	$ -	$ -

d. Liquidity risk

Taipei Star Bank's liquidity reserve ratio as of March 31, 2024, December 31, 2023 and March 31, 2023 were 21%, 19% and 18%, respectively. The capital and working capital are sufficient to meet all contractual obligations, so there is no liquidity risk due to the inability to raise funds to meet contractual obligations. In addition, the possibility that the derivative financial products held by Taipei Star Bank cannot be sold in the market at a reasonable price is extremely small, so the liquidity risk is very low.

The basic policy of Taipei Star Bank is to match the maturity profiles of financial assets and liabilities, and manage non-matching gaps. Due to the uncertainty of transaction details and types, the maturity profiles of financial assets and liabilities cannot match the interest rates completely. This kind of gap can generate potential profit or loss, Taipei Star Bank classified financial assets and liabilities into different groups by their nature and assessed its liquidity as follows:

Unit: NT $thousands

item	March 31, 2024
	Within 1 month	1-6 Months	6-12 Months	1-7 years	Over 7 Years	Total
Assets
Cash and cash equivalents	$ 1,515,120	$ -	$ -	$ -	$ -	$ 1,515,120
Due from the Central Bank and call loans to other banks	1,666,742	780,792	593,280	781,413	-	3,822,227
Financial assets at FVTPL	1,028,080	-	-	-	-	1,028,080
Bills and bonds purchased under resale agreements	3,192,130	-	-	-	-	3,192,130
Receivable	117,200	85,512	21,299	3,880	-	227,891
Discounts and loans	1,903,714	9,726,738	8,964,203	23,896,081	10,921,216	55,411,952
Financial assets at amortized cost - debt instruments	3,963,958	1,506,282	1,400,469	9,008,699	2,428,950	18,308,358
Financial assets at FVTOCI	-	294,280	159,316	4,204,340	1,070,603	5,728,539
Total Assets.	13,386,944	12,393,604	11,138,567	37,894,413	14,420,769	89,234,297
Liabilities
Due to the Central Bank and other banks	$ 3,727,710	$ 575,820	$ -	$ -	$ -	$ 4,303,530
Bills and bonds purchased under resale agreements	2,552,670	-	-	-	-	2,552,670
Financial liabilities at FVTPL	9,203	-	-	-	-	9,203
Trade payables	230,994	89,806	53,183	46,157	-	420,140
Deposits and remittances	5,605,619	25,409,484	17,819,965	25,429,704	-	74,264,772
Financial bonds payable	-	400,000	100,000	820,000	-	1,320,000
Lease liabilities	2,305	11,598	14,086	112,880	-	140,869
Total Liabilities	12,128,501	26,486,708	17,987,234	26,408,741	-	83,011,184
Net liquidity gap	$ 1,258,443	($ 14,093,104 )	($ 6,848,667 )	$ 11,485,672	$ 14,420,769	$ 6,223,113
item	December 31, 2023
---	---	---	---	---	---	---
	Within 1 month	1-6 Months	6-12 Months	1-7 Year	Over 7 Years	Total
Assets
Cash and cash equivalents	$ 2,369,767	$ -	$ -	$ -	$ -	$ 2,369,767
Due from the Central Bank and call loans to other banks	2,173,040	722,657	604,851	773,455	-	4,274,003
Financial assets at FVTPL	991,292	-	-	-	-	991,292
Financial assets at FVTOCI	-	-	289,830	3,105,453	411,241	3,806,524
Financial assets at amortized cost - debt instruments	3,761,470	1,064,183	2,096,944	9,198,409	2,522,359	18,643,365
Bills and bonds purchased under resale agreements	2,296,769	-	-	-	-	2,296,769
Receivable	120,220	60,530	27,636	2,399	-	210,785
Discounts and loans	1,989,914	7,838,405	10,031,252	24,216,667	11,432,917	55,509,155
Total Assets.	13,702,472	9,685,775	13,050,513	37,296,383	14,366,517	88,101,660
Liabilities
Due to the Central Bank and other banks
Funds borrowed from Central Bank and other banks	2,718,375	199,778	-	-	-	2,918,153
Financial liabilities at FVTPL	10,223	-	-	-	-	10,223
Bills and bonds purchased under resale agreements	3,018,758	297,000	-	-	-	3,315,758
Trade payables	422,108	131,503	20,595	40,337	-	614,543
Deposits and remittances	5,838,147	23,813,528	18,419,341	25,487,457	-	73,558,473
Financial bonds payable	-	200,000	300,000	820,000	-	1,320,000
Lease liabilities	2,598	13,060	16,049	119,656	-	151,363
Total Liabilities	12,010,209	24,654,869	18,755,985	26,467,450	-	81,888,513
Net liquidity gap	$ 1,692,263	($ 14,969,094 )	($ 5,705,472 )	$ 10,828,933	$ 14,366,517	$ 6,213,147

(Continued on next page)

(Continued from the previous page)

March 31, 2023

item	Within 1 month	1-6 Months	6-12 Months	1-7 Year	Over 7 Years	Total
Assets
Cash and cash equivalents	$ 1,375,485	$ -	$ -	$ -	$ -	$ 1,375,485
Due from the Central Bank and call loans to other banks	1,616,933	738,925	568,525	800,669	-	3,725,052
Financial assets at FVTPL	788,295	-	-	-	-	788,295
Bills and bonds purchased under resale agreements	2,842,929	-	-	-	-	2,842,929
Receivable	94,886	66,854	13,323	2,020	-	177,083
Discounts and loans	1,910,550	8,765,831	9,098,959	24,394,408	12,121,564	56,291,312
Financial assets at amortized cost - debt instruments	3,360,897	1,113,359	772,926	10,545,028	1,987,917	17,780,127
Financial assets at FVTOCI	-	-	-	2,737,787	90,969	2,828,756
Total Assets	11,989,975	10,684,969	10,453,733	38,479,912	14,200,450	85,809,039
Liabilities
Due to the Central Bank and other banks	3,720,430	-	-	-	-	3,720,430
Bills and bonds purchased under resale agreements	2,395,034	328,816	-	-	-	2,723,850
Financial liabilities at FVTPL	7,281	-	-	-	-	7,281
Trade payables	231,290	88,781	49,655	54,745	-	424,471
Deposits and remittances	5,444,947	23,428,531	16,463,615	25,386,191	-	70,723,284
Financial bonds payable	-	500,000	-	1,320,000	-	1,820,000
Lease liabilities	2,503	12,625	15,279	137,299	-	167,706
Total Liabilities	11,801,485	24,358,753	16,528,549	26,898,235	-	79,587,022
Net liquidity gap	$ 188,490	( $ 13,673,784 )	( $ 6,074,816 )	$ 11,581,677	$ 14,200,450	$ 6,222,017

Analysis of cash outflows from nonderivative financial liabilities

The table below shows the analysis of the cash outflow of non-derivative financial Liabilities of Taipei Star Bank based on the remaining period from the end of the reporting period to the contractual maturity date. The amounts of cash outflows are based on contractual cash flows, so some amounts may not correspond to those shown in the consolidated balance sheets.

March 31, 2024	0-30 Days	31-90 Days	91-180 Days	181 Days-	1 Year	Total
Due to the Central Bank and other banks	$3,727,710	$575,820	$-	$-	$-	$4,303,530
Bills and bonds purchased under resale agreements	2,555,701	-	-	-	-	2,555,701
Trade payables	230,994	67,816	21,990	53,183	46,157	420,140
Deposits and remittances	5,605,619	12,387,578	13,021,906	17,819,965	25,429,704	74,264,772
Financial bonds payable	-	200,000	200,000	100,000	820,000	1,320,000
Other items of cash outflow on maturity	7,057	5,519	8,278	25,820	410,715	457,389
December 31, 2023	0-30 Days	31-90 Days	91-180 Days	181 Days-	1 Year	Total
---	---	---	---	---	---	---
Due to the Central Bank and other banks	$2,718,375	$ 199,778	$ -	$ -	$ -	$2,918,153
Bills and bonds purchased under resale agreements	2,751,757	567,983	-	-	-	3,319,740
Trade payables	422,108	105,890	25,613	20,595	40,337	614,543
Deposits and remittances	5,838,147	10,022,368	13,791,160	18,419,341	25,487,457	73,558,473
Financial bonds payable	-	-	200,000	300,000	820,000	1,320,000
Other items of cash outflow on maturity	6,969	5,481	34,653	42,874	433,180	523,157
March 31, 2023	0-30 Days	31-90 Days	91-180 Days	181 Days-	1 Year	Total
---	---	---	---	---	---	---
Due to the Central Bank and other banks	$3,720,430	$-	$-	$-	$-	$3,720,430
Financial liabilities at FVTPL	7,281	-	-	-	-	7,281
Bills and bonds purchased under resale agreements	2,397,151	331,673	-	-	-	2,728,824
Trade payables	231,290	65,327	23,454	49,655	54,745	424,471
Deposits and remittances	5,444,947	9,123,789	14,304,742	16,463,615	25,386,191	70,723,284
Financial bonds payable	-	-	500,000	-	1,320,000	1,820,000
Other items of cash outflow on maturity	4,274	11,142	7,948	15,896	443,420	482,680

Analysis of cash outflows from derivative financial liabilities

Derivatives settled in gross amounts

Taipei Star Bank settles the following derivative instruments on gross amounts:

Derivatives: Foreign exchange contracts.

The table below shows derivative financial instruments delivered in total by Taipei Star Bank, based on the remaining term from the balance sheet date to the contract maturity date. The contract maturity date is essential for understanding the basic elements of all derivative financial instruments listed on the balance sheet. The disclosed amounts in the table are based on contract cash flows, so some items may not correspond directly to balance sheet items. The analysis of derivative financial liabilities settled in total at maturity is as follows:

March 31, 2024	0-30 Days	31-90 Days	91-180 Days	181 Days-	1 Year	Total
Derivative financial liabilities at fair value through profit or loss
- Foreign exchange derivatives
- Cash outflow	$1,120,339	$ 31,821	$ -	$ 20,362	$ -	$1,172,522
- Cash inflow	1,111,857	31,460	-	20,002	-	1,163,319
Subtotal of cash outflows	1,120,339	31,821	-	20,362	-	1,172,522
Subtotal of cash inflows	1,111,857	31,460	-	20,002	-	1,163,319
Net cash flow	($ 8,482)	($ 361)	$ -	($ 360)	$ -	($ 9,203)
December 31, 2023	0-30 Days	31-90 Days	91-180 Days	181 Days-	1 Year	Total
---	---	---	---	---	---	---
Derivative financial liabilities at fair value through profit or loss
- Foreign exchange derivatives
- Cash outflow	$221,457	$216,976	$ -	$ -	$ -	$438,433
- Cash inflow	215,794	212,416	-	-	-	428,210
Subtotal of cash outflows	221,457	216,976	-	-	-	438,433
Subtotal of cash inflows	215,794	212,416	-	-	-	428,210
Net cash flow	($ 5,663)	($ 4,560)	$ -	$ -	$ -	($ 10,223)
March 31, 2023	0-30 Days	31-90 Days	91-180 Days	181 Days-	1 Year	Total
---	---	---	---	---	---	---
Derivative financial liabilities at fair value through profit or loss
- Foreign exchange derivatives
- Cash outflow	$852,391	$ -	$ -	$ -	$ -	$852,391
- Cash inflow	845,110	-	-	-	-	845,110
Subtotal of cash outflows	852,391	-	-	-	-	852,391
Subtotal of cash inflows	845,110	-	-	-	-	845,110
Net cash flow	($ 7,281)	$ -	$ -	$ -	$ -	($ 7,281)

e. Maturity analysis of off-balance sheet items

The table below provides an analysis of off-balance-sheet items for Taipei Star Bank based on the remaining term from the balance sheet date to the contract maturity date. Regarding issued financial guarantee contracts, the maximum amount of the guarantee is included in the earliest period when it may be requested for fulfillment. The disclosed amounts in the table are based on contract cash flows, so some items may not directly correspond to balance sheet items.

March 31, 2024	0-30 Days	31-90 Days	91-180 Days	181 Days-	1 Year	Total
Loan commitments issued	$ 682,944	$1,365,888	$2,048,832	$4,097,665	$11,891,262	$20,086,591
Letters of credit issued	578	-	-	-	-	578
Other guarantees	-	-	-	471,000	194,000	665,000
Total	$ 683,522	$1,365,888	$2,048,832	$4,568,665	$12,085,262	$20,752,169
December 31, 2023	0-30 Days	31-90 Days	91-180 Days	181 Days-	1 Year	Total
---	---	---	---	---	---	---
Loan commitments issued	$ 704,334	$1,408,669	$2,113,003	$4,226,007	$12,263,706	$20,715,719
Letters of credit issued	30	5,946	-	-	-	5,976
Other guarantees	350,000	150,000	11,000	3,000	191,000	705,000
Total	$1,054,364	$1,564,615	$2,124,003	$4,229,007	$12,454,706	$21,426,695
March 31, 2023	0-30 Days	31-90 Days	91-180 Days	181 Days-	1 Year	Total
---	---	---	---	---	---	---
Loan commitments issued	$ 660,219	$1,320,437	$1,980,655	$3,961,311	$11,495,567	$19,418,189
Letters of credit issued	7,845	32,713	-	-	-	40,558
Other guarantees	700	-	-	-	95,000	95,700
Total	$ 668,764	$1,353,150	$1,980,655	$3,961,311	$11,590,567	$19,554,447

f. Cash flow risk of variable interest rate

The future cash flow of Taipei Star Bank's variable interest rate assets and variable interest rate liabilities can be fluctuation and have risks due to the change in market interest rate. However, after evaluation by Taipei Star Bank, the practical operation is to control the net liquidity gap in order to reduce the cash flow risk caused by changes in interest rates.

(3) Disclosure Requirement of Regulations Governing the Preparation of Financial Reports by Public Banks - Article 16

a. Asset quality

March 31, 2024

Item			Non-performing loans (Note 1)	Loans	NPL ratio (Note 2)	Allowance for Possible Losses	Coverage Ratio (Note 3)
Corporate Banking	Secured		5,774	17,560,202	0.03%	195,774	3,390.61%
	Unsecured		126	2,582,815	-	32,842	26,065.08%
Consumer Banking	Residential mortgage (Note 4)		27,000	6,166,880	0.44%	92,217	341.54%
	Cash card		-	-	-	-	-
	Small-scale credit loans (Note 5)		691	26,643	2.59%	896	129.67%
	Other (Note 6)	Secured	43,273	28,705,306	0.15%	313,113	723.58%
		Unsecured	-	370,106	-	5,016	-
Total loans			76,864	55,411,952	0.14%	639,858	832.45%
Item	Non-per-forming Receivables	Accounts receivables Balance	Overdue accounts Ratio	Allowance for Possible Losses	Coverage Ratio
---	---	---	---	---	---
Credit cards	-	-	-	-	-
Accounts receivable factored without recourse (Note 7)	-	-	-	-	-
	Not Reported as Nonperforming Loans	Not Reported as Total Accounts Receivables
---	---	---
Amounts of executed contracts on negotiated debts (Note 8)	-	-
Amounts of executed debt-restructuring projects (Note 9)	463	-
Total	463	-

December 31, 2023

Item			Non-performing loans (Note 1)	Loans	NPL ratio (Note 2)	Allowance for Possible Losses	Coverage Ratio (Note 3)
Corporate Banking	Secured		7,653	17,329,381	0.04%	193,143	2,523.76%
	Unsecured		25	2,335,090	-	29,615	118,460.00%
Consumer Banking	Residential mortgage (Note 4)		-	6,541,290	-	97,568	-
	Cash card		-	-	-	-	-
	Small-scale credit loans (Note 5)		730	30,155	2.42%	861	117.95%
	Other (Note 6)	Secured	32,030	28,908,212	0.11%	302,770	945.27%
		Unsecured	-	365,027	-	4,924	-
Total loans			40,438	55,509,155	0.07%	628,881	1,555.17%
Item	Non-performing Receivables	Accounts receivables Balance	Overdue accounts Ratio	Allowance for Possible Losses	Coverage Ratio
---	---	---	---	---	---
Credit cards	-	-	-	-	-
Accounts receivable factored without recourse (Note 7)	-	-	-	-	-
	Not Reported as Nonperforming Loans	Not Reported as Total Accounts Receivables
---	---	---
Amounts of executed contracts on negotiated debts (Note 8)	-	-
Amounts of executed debt-restructuring projects (Note 9)	632	-
Total	632	-

March 31, 2023

Item			Non-performing loans (Note 1)	Loans	NPL ratio (Note 2)	Allowance for Possible Losses	Coverage Ratio (Note 3)
Corporate Banking	Secured		5,349	17,779,532	0.03%	199,600	3,731.54%
	Unsecured		27	3,204,729	-	37,504	138,903.70%
Consumer Banking	Residential mortgage (Note 4)		-	6,668,058	-	99,273	-
	Cash card		-	-	-	-	-
	Small-scale credit loans (Note 5)		996	43,607	2.28%	1,425	143.07%
	Other (Note 6)	Secured	65,356	28,356,245	0.23%	312,823	478.64%
		Unsecured	-	239,141	-	2,174	-
Total loans			71,728	56,291,312	0.13%	652,799	910.10%
Item	Non-performing Receivables	Accounts receivables Balance	Overdue accounts Ratio	Allowance for Possible Losses	Coverage Ratio
---	---	---	---	---	---
Credit cards	-	-	-	-	-
Accounts receivable factored without recourse (Note 7)	-	-	-	-	-
	Not Reported as Nonperforming Loans	Not Reported as Total Accounts Receivables
---	---	---
Amounts of executed contracts on negotiated debts (Note 8)	-	-
Amounts of executed debt-restructuring projects (Note 9)	479	-
Total	479	-

Note 1: Nonperforming loans are reported to the authorities and disclosed to the public, as required by the "Regulations Governing the Procedures for Banking Institutions to Evaluate Assets and Deal with Nonperforming/Non-accrued Loans". Nonperforming receivables are reported to the authorities and disclosed to the public, as required by the Banking Bureau's letter dated July 6, 2005 (Ref. No. 0944000378).

Note 2: Ratio of nonperforming loans: Nonperforming loans ÷ Outstanding loans balance. Ratio of nonperforming receivables: Nonperforming receivables ÷ Outstanding accounts receivables balance.

Note 3: Coverage ratio of loans: Allowance for possible losses for loans ÷ Nonperforming loans. Coverage ratio of accounts receivables: Allowance for possible losses for accounts receivables ÷ Nonperforming receivables.

Note 4: The mortgage loan is for house purchase or renovation and is fully secured by housing that is purchased (owned) by the borrower, the spouse or the minor children of the borrowers.

Note 5: Based on the Banking Bureau's letter dated December 19, 2005 (Ref. No. 09440010950), small-scale credit loans are unsecured, involve small amounts and exclude credit cards and cash cards.

Note 6: Other consumers' banking loans refer to secured or unsecured loans that exclude housing mortgages, cash cards, credit cards and small-scale credit loans.

Note 7: As required by the Financial Supervisory Commission (FSC) in its letter dated August 24, 2009 (Ref. No. 09850003180), the non-recourse accounts receivable should be reported as overdue within three months from the date of confirmation of non-payment by the accounts receivable purchaser or the insurance company.

Note 8: Amounts of executed contracts on negotiated debts that are not reported as nonperforming loans or accounts receivables are reported in accordance with the Financial Supervisory Commission's letter dated April 25, 2006 (Ref. No. 09510001270).

Note 9: Amounts of executed debt-restructuring projects not reported as nonperforming loans or accounts receivables are disclosed to the public in accordance with the Financial Supervisory Commission's letter dated September 15, 2008 (Ref. No. 09700318940).

b. Concentration of credit extensions

Unit: NT $thousands, %

Period	March 31, 2024			December 31, 2023			March 31, 2023
Rank	Company or Group enterprise	Total Credit Balance	Percentage of Equity (%)	Company or Group enterprise	Total Credit Balance	Percentage of Equity (%)	Company or Group enterprise Industry	Total Credit Balance	Percentage of Equity (%)
1	Group A 016700 real estate development	$1,303,049	22.43%	Group A 016700 real estate development	$1,334,912	23.07%	Group A 016700 real estate development	$1,291,199	22.33%
2	Group B 016700 real estate development	818,855	14.10%	Group B 016700 real estate development	822,855	14.22%	Group B 016700 real estate development	731,520	12.65%
3	Group C 017900 tourism and other service	802,453	13.82%	Group C 017900 Travel related services	803,407	13.89%	Group M 016700 real estate development	607,800	10.51%
4	Group D 016700 real estate development	650,000	11.19%	Group E 016700 real estate development	560,400	9.69%	Group F 014510 wholesale of merchandise brokers	456,000	7.89%
5	Group E 016700 real estate development	560,400	9.65%	Group F 014510 wholesale of merchandise brokers	456,000	7.88%	Group G 016700 real estate development	454,112	7.85%
6	Group F 014510 wholesale of merchandise brokers	456,000	7.85%	Group G 016700 real estate development	441,096	7.62%	Group E 016700 real estate development	445,000	7.70%
7	Group G 016700 real estate development	436,188	7.51%	Group K 016700 real estate development	401,000	6.93%	Group N 015220 Shipping agency	440,000	7.61%
8	Group H 016700 real estate development	401,000	6.90%	Group H 016700 real estate development	401,000	6.93%	Company O (Group) 016700 real estate development	439,500	7.60%
9	Group I 016811 real estate for sale and rental	360,000	6.20%	Group I 016811 real estate for sale and rental	360,000	6.22%	Company P (Group) 016700 real estate development	398,340	6.89%
10	Group J 016700 real estate development	355,500	6.12%	Group L 017721 renting and leasing of motor vehicles	350,000	6.05%	Company Q (Group) 017900 tourism and other service	392,299	6.79%

Note 1: The above table shows the order of non-government or state-owned credit facilities based on the total credit balance of the credit recipients. It lists the top ten enterprise credit recipients that do not belong to the government or state-owned entities. If a credit recipient belongs to a

corporate group, the credit amount for that group is aggregated and displayed. Additionally, the disclosure includes a combination of a "code" and an "industry category." For corporate groups, the industry category of the largest exposure within that group should be disclosed, with the industry type listed according to the standard classification by the statistical office.

Note 2: Group enterprise refers to a group of corporate entities as defined by Article 6 of "Supplementary Provisions to the Taiwan Stock Exchange Corporation Rules for Review of Securities Listings".

Note 3: Total amount of credit, endorsement or other transactions is the sum of various loans (including import and export negotiations, discounts, overdrafts, unsecured and secured short-term loans, margin loans receivable, unsecured and secured medium-term loans, unsecured and secured long-term loans and overdue loans), exchange bills negotiated, accounts receivable factored without recourse, acceptances and guarantees.

c. Interest rate sensitivity information

Interest Rate Sensitivity (In New Taiwan Dollars)

March 31, 2024

Items	1 to 90 Days	91 to 180 Days	181 Days to 1 Year	1 Year	Total
Interest rate-sensitive assets	58,025,078	1,339,054	4,007,786	16,327,83	79,699,753
Interest rate-sensitive liabilities	61,641,754	4,982,758	10,140,761	1,433,77	78,199,051
Interest rate sensitivity gap	( 3,616,676 )	( 3,643,704 )	( 6,132,975 )	14,894,05	1,500,702
Net worth					5,808,442
Interest rate sensitivity Assets and Liabilities rate%					101.92
Ratio of interest rate sensitivity gap to net worth (%)					25.84

Interest Rate Sensitivity (In New Taiwan Dollars)

December 31, 2023

Items	1 to 90 Days	91 to 180 Days	181 Days to 1 Year	1 Year	Total
Interest rate-sensitive assets	56,571,178	909,141	4,903,739	15,939,4	78,323,487
Interest rate-sensitive liabilities	59,081,012	6,229,166	10,205,383	1,398,6	76,914,244
Interest rate sensitivity gap	( 2,509,834 )	( 5,320,025 )	( 5,301,644 )	14,540,7	1,409,243
Net worth					5,785,584
Interest rate sensitivity Assets and Liabilities rate%					101.83
Ratio of interest rate sensitivity gap to net worth (%)					24.36

Interest Rate Sensitivity (In New Taiwan Dollars)

March 31, 2023

Items	1 to 90 Days	91 to 180 Days	181 Days to 1 Year	1 Year	Total
Interest rate-sensitive assets	57,655,471	884,388	3,489,044	15,758,92	77,787,828
Interest rate-sensitive liabilities	60,585,386	6,021,792	6,572,668	1,744,85	74,924,701
Interest rate sensitivity gap	( 2,929,915 )	( 5,137,404 )	( 3,083,624 )	14,014,07	2,863,127
Net worth					5,781,553
Interest rate sensitivity Assets and Liabilities rate%					103.82
Ratio of interest rate sensitivity gap to net worth (%)					49.52

Note 1: The above amounts included only New Taiwan dollar amounts held by the head office and branches of the Bank (i.e., excluding foreign currency).

Note 2: Interest rate-sensitive assets and liabilities refer to the revenue or costs of interest-earning assets and interest-bearing liabilities that were affected by interest rate changes.

Note 3: Interest rate sensitivity gap = Interest rate-sensitive assets - Interest rate-

sensitive liabilities.

Note 4: Ratio of interest rate-sensitive assets to liabilities = Interest rate-sensitive assets/Interest rate-sensitive liabilities (in New Taiwan dollars).

Interest Rate Sensitivity (In U.S. Dollars)

March 31, 2024

Unit: US $thousand,%

Items	1 to 90 Days	91 to 180 Days	181 Days to 1 Year	1 Year	Total
Interest rate-sensitive assets	28,945	8,009	5,180	135,181	177,315
Interest rate-sensitive liabilities	127,017	19,309	2,903	-	149,229
Interest rate sensitivity gap	( 98,072 )	( 11,300 )	2,277	135,181	28,086
Net worth					( 764 )
Interest rate sensitivity Assets and Liabilities rate%					118.82
Ratio of interest rate sensitivity gap to net worth (%)					( 3,676.18 )

Interest Rate Sensitivity (In U.S. Dollars)

December 31, 2023

Unit: US $thousand, %

Items	1 to 90 Days	91 to 180 Days	181 Days to 1 Year	1 Year	Total
Interest rate-sensitive assets	32,707	5,000	8,175	111,201	157,083
Interest rate-sensitive liabilities	121,484	25,368	1,882	-	148,734
Interest rate sensitivity gap	( 88,777 )	( 20,368 )	6,293	111,201	8,349
Net worth					( 842 )
Interest rate sensitivity Assets and Liabilities rate%					105.61
Ratio of interest rate sensitivity gap to net worth (%)					( 991.57 )

Interest Rate Sensitivity (In U.S. Dollars)

March 31, 2023

Unit: US $thousand, %

Items	1 to 90 Days	91 to 180 Days	181 Days to 1 Year	1 Year	Total
Interest rate-sensitive assets	32,914	4,000	2,159	110,073	149,146
Interest rate-sensitive liabilities	105,308	23,800	25,966	-	155,074
Interest rate sensitivity gap	( 72,394 )	( 19,800 )	( 23,807 )	110,073	( 5,928 )
Net worth					93
Interest rate sensitivity Assets and Liabilities rate%					96.18
Ratio of interest rate sensitivity gap to net worth (%)					( 6,374.19 )

Note 1: This table reports the amount of US $total of the head office, domestic branches, international financial business branches and overseas branches, excluding contingent Assets and contingent Liabilities item.

Note 2: Interest rate-sensitive assets and liabilities refer to the revenue or costs of interest-earning assets and interest-bearing liabilities that were affected by interest rate changes.

Note 3: Interest rate sensitivity gap = Interest rate-sensitive assets - Interest rate-sensitive liabilities.

Note 4: Interest rate sensitivity Assets and Liabilities rate ≤ Interest rate sensitivity

Assets+Interest rate sensitivity Liabilities (refers to USD interest rate sensitivity Assets and interest rate sensitivity Liabilities)

d. Profitability

Unit:%

Items		March 31, 2024	December 31, 2023	March 31, 2023
Return on assets	Before tax	0.18	0.16	0.16
	After tax	0.14	0.13	0.12
Return on equity	Before tax	2.83	2.42	2.24
	After tax	2.21	1.96	1.84
Net Profit Margin		11.05	10.80	10.49

Note 1: Return on assets = Income before (after) income tax/Average assets.
Note 2: Return on equity = Income before (after) income tax/Average equity.
Note 3: Net Profit Margin "Profit or loss after tax/Net income
Note 4: Income before (after) income tax represents income from January to each period-end date.

e. Maturity analysis of assets and liabilities

Maturity Analysis of Assets and Liabilities (New Taiwan Dollars)

March 31, 2024

Unit: NT $thousands

	Total	Remaining Period to Maturity
		0-10 Days	11-30 Days	31-90 Days	91-180 Days	181 Days to 1 Year	Over 1 Year
Main capital inflow on maturity	85,445,377	6,726,327	6,462,267	4,673,140	7,090,540	10,919,473	49,573,630
Main capital outflow on maturity	105,100,157	4,577,941	6,704,877	12,672,051	14,503,105	23,230,633	43,411,550
Gap	( 19,654,780)	2,148,386	( 242,610)	( 7,998,911)	( 7,412,565)	( 12,311,160)	6,162,080

Maturity Analysis of Assets and Liabilities (New Taiwan Dollars)

December 31, 2023

Unit: NT $thousands

	Total	Remaining Period to Maturity
		0-10 Days	11-30 Days	31-90 Days	91-180 Days	181 Days to 1 Year	Over 1 Year
Main capital inflow on maturity	84,752,342	8,605,538	4,373,991	3,292,677	5,998,064	12,732,463	49,749,609
Main capital outflow on maturity	105,226,656	4,721,484	6,660,651	10,449,445	15,272,648	24,194,346	43,928,082
Gap	( 20,474,314)	3,884,054	( 2,286,660)	( 7,156,768)	( 9,274,584)	( 11,461,883)	5,821,527

Maturity Analysis of Assets and Liabilities (New Taiwan Dollars)

March 31, 2023

Unit: NT $thousands

	Total	Remaining Period to Maturity
		0-10 Days	11-30 Days	31-90 Days	91-180 Days	181 Days to 1 Year	Over 1 Year
Main capital inflow on maturity	82,913,884	6,447,216	4,706,399	4,487,861	6,291,922	10,325,134	50,655,352
Main capital outflow on maturity	102,100,357	4,980,128	6,079,718	9,930,159	16,252,052	21,072,124	43,786,176
Gap	( 19,186,473)	1,467,088	( 1,373,319)	( 5,442,298)	( 9,960,130)	( 10,746,990)	6,869,176

Note: The above amounts included only New Taiwan dollar amounts held by the Taipei Star Bank (excluding foreign currency).

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Maturity Analysis of Assets and Liabilities (USD)

March 31, 2024

Unit: US $thousands

	Total	Remaining Period to Maturity
		1-30 Days	31-90 Days	91-180 Days	181 Days to 1 Year	1 Year
Main capital inflow on maturity	191,123	17,352	7,380	11,387	8,051	146,953
Main capital outflow on maturity	181,231	77,039	59,640	20,030	4,185	20,337
Gap	9,892	( 59,687 )	( 52,260 )	( 8,643 )	3,866	126,616

Maturity Analysis of Assets and Liabilities (USD)

December 31, 2023

Unit: US $thousands

	Total	Remaining Period to Maturity
		1-30 Days	31-90 Days	91-180 Days	181 Days to 1 Year	1 Year
Main capital inflow on maturity	176,336	17,105	12,895	9,187	11,033	126,116
Main capital outflow on maturity	169,786	62,070	58,131	26,097	3,182	20,306
Gap	6,550	( 44,965 )	( 45,236 )	( 16,910 )	7,851	105,810

Maturity Analysis of Assets and Liabilities (USD)

March 31, 2023

Unit: US $thousands

	Total	Remaining Period to Maturity
		1-30 Days	31-90 Days	91-180 Days	181 Days to 1 Year	1 Year
Main capital inflow on maturity	186,263	33,868	2,193	14,210	4,035	131,957
Main capital outflow on maturity	171,689	65,586	29,109	33,919	26,110	16,965
Gap	14,574	( 31,718 )	( 26,916 )	( 19,709 )	( 22,075 )	114,992

Note 1: The above amounts included only U.S. dollar amounts held by the head office, domestic branches, OBU and overseas branches of the bank, unless otherwise indicated (such as planned issuance of negotiable certificates of deposit, bonds or stocks, etc.)

Note 2: If OBU's assets amounts constitute more than 10% of Bank's total assets, additional information will need to be disclosure.

46. CAPITAL MANAGEMENT

(1) The eligible capital of Taipei Star Bank meets the requirements set by the authorities and should comply with the minimum ratio requested by authorities. This is the main objective of capital management of the Bank. The eligible capital and legal capital are calculated under the rule set by the authorities.

In order for Taipei Star Bank to have sufficient capital to bear various risks, Taipei Star Bank assesses the impact of various business volume charges on the capital adequacy ratio in accordance with Taipei Star Bank business development and operation plan and budget report and optimizes the allocation of capital according to business needs.

(2) Taipei Star Bank maintains a capital adequacy ratio to comply with the regulations of the

competent authority and reports to the competent authority quarterly. The capital of Taipei Star Bank is managed by the Risk Management Department. According to the "Regulations Governing the Capital Adequacy and Capital Category of Banks", the self-owned capital is divided into Tier 1 capital and Tier 2 capital:

a. Tier 1 capital: (including common equity and other tier 1 capital)

i Common equity includes ordinary shares and its issuance surplus, capital collected in advance, capital surplus, legal reserve, special reserve, accumulated profit and loss, non-controlling interests and other equity items.

ii Other tier 1 capital including non-cumulative perpetual preference shares and its issuance surplus, non-cumulative perpetual subordinated debts and the non-cumulative perpetual preference shares and its issuance surplus, and the non-cumulative perpetual subordinated debts which are issued by banks' subsidiaries, and are not directly or indirectly held by banks.

b. Tier 2 capital:

The scope includes perpetual cumulative preferred shares and their share premium, non-redeemable subordinated bonds without maturity date, convertible subordinated bonds, long-term subordinated bonds, non-perpetual special shares and their share premium, real estate revalued at fair value or revaluation surplus upon initial adoption of international accounting standards (recognized as retained earnings increase), 45% of unrealized gains on financial assets measured at fair value through other comprehensive income, operating reserves, provisions for bad debts, and perpetual cumulative preferred shares and erpetual subordinated bonds without maturity dates, convertible subordinated bonds, long-term subordinated bonds, non-perpetual preferred stock and its capital surplus issued by the bank's subsidiaries that are not directly or indirectly held by the bank.

(3) Capital adequacy

Taipei Star Bank's regulatory capital, weighted risk-based Assets and capital adequacy ratio were calculated under the "Regulations Governing the Capital Adequacy and Capital Category of Banks". Taipei Star Bank complied with the local regulations governing capital management as of March 31, 2024, December 31, 2023 and March 31, 2024.

Unit: NT $thousands; %

Year Analysis Items			2024 years March 31	2023 years December 31	2023 years March 31
Eligible capital	Common equity		5,379,500	5,348,785	5,357,381
	Other Tier 1 capital		900,000	900,000	900,000
	Tier 2 capital		1,037,012	1,028,080	1,119,694
	Eligible capital		7,316,512	7,276,865	7,377,075
Risk-weighted assets	Credit risk	Standardized approach	49,389,297	48,202,780	48,148,770
		Internal rating - based approach	-	-	-
		Securitization	-	-	-
	Operational risk	Basic indicator approach	2,115,153	2,115,153	2,145,376
		Standardized approach/alternative standardized approach	-	-	-
		Advanced measurement approach	-	-	-
	Market risk	Standardized approach	2,497,850	2,895,552	2,440,942
		Internal model approach	-	-	-
Risk-weighted assets			54,002,300	53,213,485	52,735,088
Capital adequacy ratio (%)			13.55	13.67	13.99
Ratio of common equity to risk-weighted assets (%)			9.96	10.05	10.16
Ratio of Tier 1 capital to risk-weighted assets (%)			11.63	11.74	11.87
Leverage ratio (%)			6.75	6.80	7.03

Note 1: Eligible capital and risk-weighted assets are calculated under the “Regulations Governing the Capital Adequacy Ratio of Banks” and “Explanation of Methods for Calculating the Eligible Capital and Risk-Weighted Assets of Banks”.

Note 2: Annual consolidated financial statements have to disclose the capital adequacy ratio with two comparative periods, and semi-annual consolidated financial statements have to disclose the additional capital adequacy ratio for the last years ended except for two comparative periods.

Note 3: The formulas used were as follows:
1) Eligible capital = Common equity + Other Tier 1 capital + Tier 2 capital.
2) Risk-weighted assets = Risk-weighted asset for credit risk + Capital requirements for operational risk and market risk × 12.5.
3) Capital adequacy ratio = Eligible capital ÷ Risk-weighted assets.
4) Ratio of the common equity to risk-weighted assets = Ordinary share ÷ Risk-weighted assets.
5) Ratio of Tier 1 capital to risk-weighted assets = (Common equity + Other Tier 1 capital) ÷ Risk-weighted assets.
6) Leverage ratio = Tier 1 capital ÷ Exposure amount.

47. INFORMATION DISCLOSED FOLLOWING REGULATIONS GOVERNING THE PREPARATION OF FINANCIAL REPORTS BY SECURITIES FIRMS

(1) Fair value of financial instruments not measured at fair value

Shinkong International Securities management believes the carrying amounts of financial instruments that are not measured at Fair value approximate their fair values or their fair values cannot be reliably measured.

(2) Fair value of financial instruments measured at fair value on a recurring basis

a. Fair value hierarchy

	March 31, 2024
	Level 1	Level 2	Level 3	Total
Financial assets at FVTPL - current
Trading securities-dealing-OTC-emerging stock	$ 67,770	$ -	$ -	$ 67,770
Trading securities - underwriting - Bonds	4,520	-	-	4,520
Financial assets at FVTOCI - non-current
Investments in equity instruments at FVTOCI
Unlisted (over-the-counter) stocks	-	-	73,545	73,545
Total	$ 72,290	$ -	$ 73,545	$ 145,835
	December 31, 2023
	Level 1	Level 2	Level 3	Total
Financial assets at FVTPL - current
Trading securities-dealing-OTC-emerging stock	$ 50,409	$ -	$ -	$ 50,409
Trading securities - underwriting - Bonds	4,640	-	-	4,640
Financial assets at FVTOCI - non-current
Investments in equity instruments at FVTOCI
Unlisted (over-the-counter) stocks	-	-	73,545	73,545
Total	$ 55,049	$ -	$ 73,545	$ 128,594

	March 31, 2023
	Level 1	Level 2	Level 3	Total
Financial assets at FVTPL - current
Trading securities-dealing-OTC-emerging stock	$ 41,898	$ -	$ -	$ 41,898
Trading securities - underwriting - Bonds	6,779	-	-	6,779
Financial assets at FVTOCI - non-current
Investments in equity instruments at FVTOCI
Unlisted (over-the-counter) stocks	-	-	63,111	63,111
Total	$ 48,677	$ -	$ 63,111	$ 111,788

There was no transfer between Level 1 and Level 2 Fair value from January 1 to March 31, 2024 and 2023.

b. Reconciliation of Level 3 fair value measurements of financial instruments:

January 1 to March 31, 2024

Financial assets	Financial Assets at FVTOCI
	Equity Instruments
Equity at January 1	$ 73,545
Unrealized gain (loss) of financial assets at FVTOCI	-
Ending Balance	$ 73,545

January 1 to March 31, 2023

Financial assets	Financial Assets at FVTOCI
	Equity Instruments
Equity at January 1	$ 63,111
Unrealized gain (loss) of financial assets at FVTOCI	-
Ending Balance	$ 63,111

c. Valuation techniques and inputs applied for Level 3 fair value measurement:

The fair value of the investment in domestic unlisted shares is measured using the market multiple valuation technique, which is based on the transaction price of comparable shares in the active market, the corresponding net value multiplier and the liquidity discount ratio. The significant unobservable input value is mainly the liquidity discount.

If possible reasonable change in the discount for lack of marketability assumptions will occur and all other inputs will remain constant, the fair value of the investments would increase (decrease) as follows:

	March 31, 2024 (Note)	December 31, 2023	March 31, 2023 (Note)
Discount for marketability
10% increase	$ -	( $ 6,724 )	$ -
10% decrease	$ -	$ 5,835	$ -

Note: Shinkong International Securities adopts a conservative simulation to estimate the value of the target company based on the lower one. The discount on liquidity as of March 31, 2024 and 2023 increased or decreased by 10%, but there was no change because the lower of the two estimates was the same as the original estimate.

(3) Categories of financial instruments

	March 31, 2024	December 31, 2023	March 31, 2023
Financial assets
Financial assets at FVTPL
Mandatorily classified as at FVTPL
Fair value	$ 72,290	$ 55,049	$ 48,677
Financial assets at amortized cost (Note 1)	31,385,185	24,987,939	19,314,787
Financial assets at FVTOCI
Investments in equity instruments at FVTOCI	73,545	73,545	63,111
Financial Liabilities
Amortized cost (Note 2)	26,280,367	20,168,341	14,736,402

Note 1: The balances include financial assets at amortized cost, which comprise cash and cash equivalents, margin loans receivable, customer margin accounts, accounts receivables, securities business borrowing and lending, securities business borrowing and lending - unrestricted purposes, other receivables, other financial assets-current, collected payment of shares underwritten, operating deposits, settlement funds and refundable deposits.

Note 2: The balances include financial liabilities at amortized cost, which comprise short-term borrowings, short-term bills payable, securities financing refundable deposits, deposits payable for securities financing, future traders' equity, collection payable - collected payment of shares underwritten, trade and other payables (business tax not included) and other long-term borrowings.

(4) Financial risk management objectives and policies

a. Risk management system

i. Risk management policies

The purpose of Shinkong International Securities risk management policy is to create an organizational culture that values risk management and use qualitative and quantitative risk management results as a reference for business strategy formulation to control operating risks within a reasonable range.

ii. Risk management organization

The risk management organizational structure of Shinkong International Securities includes the board of directors, risk management committee, risk management unit and all business units.

The Board of Directors is the decision-making unit of Shinkong International Securities' risk management and is responsible for approving Shinkong International Securities' risk management policies, supervising the implementation of the risk management system, taking the ultimate responsibility for risk management, and promoting and implementing the Company's overall risk management.

In order to effectively implement risk management affairs, Shinkong International Securities plans to set up a risk management committee and risk management unit under the board of directors. The former is the highest

responsible unit for risk management of Shinkong International Securities, and the latter is to assist the risk management committee in performing daily risk management-related matters. In addition, every business department monitors, measures, and assesses various risks according to risk management standards. Law compliance department and internal auditing department is responsible for the independent review of risk management.

iii. Risk management procedures

Shinkong International Securities risk management process includes risk identification, risk measurement, risk monitoring and management, and risk reporting. According to the risk management policies, SKIS make risk management procedures, which mainly include market risks, credit risks, liquidity risks, and operational risks (law risks). The principle of risks are as follows:

A. Market risk management

According to legal restrictions and the authorization of the Company's board of directors, the amount of inventory caps for various businesses (such as: proprietary trading and underwriting) is set, and the early warning and stop-loss mechanisms are set according to the characteristics of the commodities. The position control and approval authorization of various limits are regulated through the division of powers and responsibilities, and risk measurement and monitoring are carried out according to the relevant measures of each business department; through after-hour analysis, the changes in transaction risks are grasped. In order to ensure complete and in-depth control of market risk, SKIS regularly conducts stress tests and implements risk management.

B. Credit risk

SKIS faces credit risk exposure, encompassing both issuer credit risk and counterparty credit risk. The former relates to the possibility of financial institutions where SKIS holds deposits defaulting on their obligations. However, given the company's interactions with multiple domestic financial institutions, most of which are reputable banks, there is no significant concentration risk. SKIS diligently manages this aspect in accordance with legal regulations. The latter risk primarily arises from brokerage activities, including clients failing to fulfill delivery obligations and risks associated with proprietary margin trading. In the event of severe market disruptions, such as insufficient market depth or disorder, clients' substantial losses could directly or indirectly impact the company.

To mitigate such scenarios, SKIS has established detailed risk management guidelines for brokerage operations, complemented by dynamic market monitoring. Additionally, to reduce counterparty (client) credit risk, business units assess counterparties' financial strength and creditworthiness before engaging in transactions, confirm transaction legality, set graded credit limits based on client financials, and regularly review client credit positions. Key factors, such as "low liquidity stocks," "high-risk stocks or clients," and "total margin trading exposure or individual stock risk warning indicators," guide credit risk management

In addition, for counterparties, in addition to regularly reviewing their credit

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status, the following measures may also be adopted to manage credit risk: restricting the addition of credit exposure, shortening their credit limits, and collecting collateral to enhance credit.

C. Liquidity risk

Shinkong International Securities’ funding liquidity risk management covers funding sources, funding utilization, and gap management. The key points of control are as follows:

a) For the source of funds, SKIS ensures the stability and dispersion of the source of funds, maintaining a sufficient amount at any time, and effectively responding to the risk of fluctuations in unanticipated capital supply.

b) For the use of funds, SKIS assesses investment income and ensures its liquidity and safety to effectively respond to the unexpected needs of funds.

c) To manage the funding gaps of every period, SKIS arranged the source and use of funds, simulated the possible future funding gaps and capital planning, and ensured that the sources of funds needed to maintain normal operations were safe.

d) The finance department prepares relevant management statements and informs the risk management unit in accordance with the operating rules for liquidity risk management, which is to ensure the safety and stability of the operating funds.

D. Legal and operational risk management

Legal and operational risk management is divided into preventive control and post-clearance review based on nature and accountability. Preventive control can prevent irreparable damage, such as keeping focus on the regulations modified and the impact on the company. Post-clearance reviews whether the business unit performs business according to the operation regulations, suggests improvements for each business, reviews loss of operational risk, and reviews the standard operating procedures of each unit.

SKIS managed by internal regulations, which review and adjustment for the existing business regularly. If a new type of business is planned or the operating environment changes, the law will be followed, and the risk management will modify and assess.

E. Climate risk management

Shinkong International Securities has set up a climate risk management team to effectively manage climate change issues. By analyzing the impact of climate-related risks on finance, strategy, operations, products, and investments in the short, medium, and long term, and measuring the physical and transition risks that climate change may bring to Shinkong International Securities, Shinkong International Securities formulates response plans and sets appropriate procedures to manage climate-related risks involved in investment targets based on investment management under climate risks. In addition, additional review mechanisms are designed for investment targets with higher climate risks.

b. Market risk analysis

Market risk refers to the risk that the value of a financial asset will fluctuate due to

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changes in market prices, such as changes in interest rates, exchange rates, securities and the prices of equity securities and commodities, which may cause losses on both on-balance-sheet and off-balance-sheet items during a certain period of time. In addition to the underwriting of listed and OTC stocks, convertible bonds, and recommending the emerging stock market by the underwriting department and the holding of the emerging stock market by the proprietary trading department as a market maker, as a whole, the shareholding ratio of listed and OTC stocks and convertible bonds of Shinkong International Securities is not high, so market risk mainly comes from the risk of decrease in revenue of Shinkong International Securities due to price fluctuations of the emerging stock market.

In order to control market risks, SKIS compliance with regulations and sets risk limits from board of directors. According to the analysis of the overall economy, industry and the financial status of individual companies, are provided for the investment decisions. Take into account the fundamentals and technical aspects of the stock market, and the supply and demand relationship of the market, also monitor the risk exposure through the mechanism of stop-loss of SKIS.

c. Credit risk analysis

Shinkong International Securities engages in financial transactions exposed to credit risk, including issuer credit risk and counterparty credit risk, as described below:

i. Issuer credit risk refers to the risk that Shinkong International Securities suffers financial losses due to the default, bankruptcy or liquidation of the issuer (or guarantor) or bank in holding financial debt instruments or deposit in financial institutions that fail to perform the repayment (or compensation) obligation in accordance with the agreed conditions.

ii. Counterparty credit risk refers to the risk that the counterparty undertaking derivatives or transactions are unable to fulfill settlement obligations on the agreed date.

Shinkong International Securities is exposed to credit risk from Assets, including Cash in banks, short-term bills (repurchase agreement), other refundable deposits and accounts receivables.

i. Credit risk concentration

Shinkong International Securities is mainly engaged in brokerage business, and the customer base is diversified. In order to reduce credit risk, Shinkong International Securities controls the risk of transaction counterparties in the brokerage business, and controls the transaction amount according to the customer's financial status to reduce the entrusted settlement risk. At the same time, for holding financial debt instruments or deposits, Shinkong International Securities has already had transactions with multiple financial institutions to diversify risks, and has designed the monitoring of the limits of a single financial institution. Therefore, there is no significant concentration of credit risk.

ii. Credit risk quality

Shinkong International Securities financial assets can be divided into categories including not past due and not impaired, past due but not impaired, and impaired and impaired reserve.

As shown in the table below, all of SKIS's financial assets are not past due and not impaired, which comprise cash and cash equivalents, customer margin accounts and other refundable deposits, customer margin accounts and other refundable deposits are mainly deposited with domestic financial institutions. Its

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credit risk is low risk, indicating that it can maintain its financial commitment performance ability even in the face of significant uncertainties or exposure to adverse conditions. For receivable, the proportion of accounts receivables and margin loans receivable is relatively high, the credit risk of each financial asset is as follows:

A. Cash and cash equivalents

Cash and cash equivalents mainly include time deposits, demand deposits, check deposits and short-term bills, with all domestic financial institutions.

B. Customer margin accounts

The customer margin account pertains to futures brokerage services. It involves collecting transaction margin and option premiums from futures traders, as well as settling price differences based on market values. According to regulatory requirements, these funds must be deposited in banks with credit ratings meeting a certain level. Additionally, a separate account is established to segregate these funds from the firm's own assets.

C. Other refundable deposits

This category includes business margins, delivery settlement funds, and other deposited margins. Business margins are primarily held in well-rated domestic banks. Delivery settlement funds are deposited with the securities exchange. According to regulations, the exchange can use these funds to compensate for non-compliance with delivery obligations in securities trading. The credit risk associated with the first two types of margins is very low. Deposited margins refer to cash or other assets held externally by Shinkong International Securities as collateral. Due to the diverse nature of depositors and relatively low individual deposit amounts, credit risk is well-diversified, resulting in very low overall credit exposure for deposited margins.

D. Other Finance Assets

The time deposits with original maturity of more than three months of Shinkong International Securities are all deposited with domestic financial institutions with good credit.

E. Accounts receivables

It refers to the company's creditor's rights arising from the securities business. These include receivables from selling business securities, such as the receivable transaction price, interest from proprietary credit transactions, and amounts receivable from entrusted securities trading. Additionally, it encompasses loans secured by securities purchased or held by clients. In the event of client default, these receivables can still be recovered through reverse transactions in the market. However, if losses occur during such offsetting, the difference must be pursued by the client. Historical data indicates that the default occurrence rate (default amount divided by entrusted business volume) has remained below 0.02% in recent years, with an extremely low ratio of bad debts within reported default amounts. Consequently, the credit risk associated with trading counterparts is low.

F. Margin loans receivable

The market fluctuation and loss of credit trading customers, which makes securities have credit loss from the counterparty. SKIS has strictly monitored

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the market fluctuation and counterparty credit status, and implemented relevant control according to regulations to minimize credit risk.

G. Loan receivables – unrestricted purpose

Shinkong International Securities provides financing services to customers for loans not restricted to use and provides financing based on the collateral paid by the customer, recognized as loan receivables—not limited to use. The Company accounted for interest received as interest income. Shinkong International Securities handles money lending business without restricted purpose and is managed separately for each customer, and publishes the tracking and disposal of money lending, financing collateral and collateral on a case-by-case basis.

Credit Assets Classification

March 31, 2024

Financial assets	Not Past Due and Not Impaired	Past Due But Not Impaired	Impaired	Impaired Reserve	Total
Cash and cash equivalents	$ 2,111,011	$ -	$ -	$ -	$ 2,111,011
Customer margin accounts	2,167,640	-	-	-	2,167,640
Collected payment of shares underwritten	507,413	-	-	-	507,413
Operating deposits	226,500	-	-	-	226,500
Settlement funds	87,371	-	-	-	87,371
Restricted long-term assets - current	60,000	-	-	-	60,000
Refundable deposits	3,456	-	-	-	3,456
Sub-total	5,163,391	-	-	-	5,163,391
Account receivable
Margin loans receivable	11,684,826	-	-	-	11,684,826
Accounts receivables	7,299,669	-	-	-	7,299,669
Securities business borrowing and lending - unrestricted purposes	6,526,692	-	-	-	6,526,692
Other receivables	31,575	-	-	-	31,575
Loan receivables	6,687	-	-	-	6,687
Sub-total	25,549,449	-	-	-	25,549,449
Other financial assets
Time deposits	496,400	-	-	-	496,400
Refinancing margin	14,160	-	-	-	14,160
Refinancing collateral receivable	11,785	-	-	-	11,785
Security borrowing margin	150,000	-	-	-	150,000
Sub-total	672,345	-	-	-	672,345
Total	$ 31,385,185	$ -	$ -	$ -	$ 31,385,185

December 31, 2023

Financial assets	Not Past Due and Not Impaired	Past Due But Not Impaired	Impaired	Impaired Reserve	Total
Cash and cash equivalents	$ 562,568	$ -	$ -	$ -	$ 562,568
Customer margin accounts	1,726,956	-	-	-	1,726,956
Collected payment of shares underwritten	17,088	-	-	-	17,088
Operating deposits	226,500	-	-	-	226,500
Settlement funds	83,121	-	-	-	83,121
Refundable deposits	3,566	-	-	-	3,566
Restricted long-term assets - current	60,000	-	-	-	60,000
Sub-total	2,679,799	-	-	-	2,679,799
Accounts receivable
Margin loans receivable	9,926,738	-	-	-	9,926,738
Accounts receivables	5,244,349	-	-	-	5,244,349
Securities business borrowing and lending - unrestricted purposes	6,504,079	-	-	-	6,504,079
Other receivables	35,030	-	-	-	35,030
Loan receivables	6,042	-	-	-	6,042
Sub-total	21,716,238	-	-	-	21,716,238
Other financial assets
Time deposits	476,400	-	-	-	476,400
Refinancing margin	7,778	-	-	-	7,778
Refinancing collateral receivable	6,415	-	-	-	6,415
Accounts receivable due from related parties	1,309	-	-	-	1,309
Security borrowing margin	100,000	-	-	-	100,000
Sub-total	591,902	-	-	-	591,902
Total	$ 24,987,939	$ -	$ -	$ -	$ 24,987,939

Credit Assets Classification

March 31, 2023

Unit: NT $thousand

Financial assets	Not Past Due and Not Impaired	Past Due But Not Impaired	Impaired	Impaired Reserve	Total
Cash and cash equivalents	$ 654,589	$ -	$ -	$ -	$ 654,589
Customer margin accounts	1,654,776	-	-	-	1,654,776
Collected payment of shares underwritten	90,050	-	-	-	90,050
Operating deposits	226,500	-	-	-	226,500
Settlement funds	81,824	-	-	-	81,824
Restricted long-term assets - current	60,000	-	-	-	60,000
Refundable deposits	3,836	-	-	-	3,836
Sub-total	2,771,575	-	-	-	2,771,575
Accounts Receivable
Margin loans receivable	7,018,439	-	-	-	7,018,439
Accounts receivables	4,261,419	-	-	-	4,261,419
Accounts receivable due from related parties	1,281	-	-	-	1,281
Securities business borrowing and lending - unrestricted purposes	5,326,079	-	-	-	5,326,079
Other receivables	21,966	-	-	-	21,966
Loan receivables	2,557	-	-	-	2,557
Sub-total	16,631,741	-	-	-	16,631,741
Other financial assets
Time deposits	386,400	-	-	-	386,400
Refinancing margin	52,255	-	-	-	52,255
Refinancing collateral receivable	41,472	-	-	-	41,472
Security borrowing margin	100,000	-	-	-	100,000
Sub-total	580,127	-	-	-	580,127
Total	$ 19,983,443	$ -	$ -	$ -	$ 19,983,443

d. Liquidity risk analysis

i. The definition of liquidity risk

Liquidity risk refers to the company's exposure to the inability to obtain necessary and sufficient funding within a reasonable timeframe at a reasonable cost. This risk can result in a funding gap or require SKIS to sell assets at prices below market value to secure essential funding.

ii. Liquidity risk management policy

To ensure smooth working capital turnover and secure safe and liquid fund utilization, SKIS designates its Finance Department as an independent unit responsible for daily fund management. The Finance Department monitors the overall company's fund status, appropriately utilizes surplus funds based on practical interactions with financial institutions, and may tap into credit lines to fill any funding gaps. Regular reports related to liquidity risk are prepared as management references.

iii. Analysis of cash outflows from nonderivative financial liabilities

Bank loan and commercial paper payable are the important sources of funds available for Shinkong International Securities to borrow. As of March 31, 2024 and December 31, 2023 and March 31, 2023, the unused credit line of Shinkong International Securities was NT $8.462 billion, NT $11.582 billion and NT $13.837 billion, respectively. The above credit line is sufficient to support the operation and development of Shinkong International Securities.

SKS regularly reviews changes in demand for capital, monitors financial market conditions and interest rate trends, and considers available credit lines to maintain sufficient funding at all times to maintain good liquidity. The following table analyzes the cash outflows of non-derivative financial liabilities of SKIS based on the dates on which SKIS may be required to make repayments or based on the behavior of contracts or transactions. Among them, short-term borrowings and commercial paper payable are the main instruments used by SKIS to finance

its operations with financial institutions, and all of them are short-term financing with maturities of less than three months.

Contractual Maturities for Its Non-derivative Financial Liabilities
March 31, 2024

Unit: NT Shousand

Financial Liabilities	Terms of Payments					Total
	Current	Within 3 months	3-12 Months	1-5 Years	5+ Years
Short-term borrowings	$ -	$ 2,975,000	$ -	$ -	$ -	$ 2,975,000
Commercial paper payable	-	7,290,454	-	-	-	7,290,454
Security deposit	631,797	-	-	-	-	631,797
Deposits payable for securities financing	677,441	-	-	-	-	677,441
Futures traders Equity	2,166,949	-	-	-	-	2,166,949
Payables
Trade payables	7,415,355	-	-	-	-	7,415,355
Other payables	15,061	105,773	504,879	-	-	625,713
Receipts under custody item-collection and underwriting	507,259	-	-	-	-	507,259
Long term liabilities due within one year	-	-	499,425	3,497,664	-	499,425
Others long-term borrowings	-	-	-	-	-	3,497,664
Lease liabilities	-	2,299	6,244	34,459	15,252	58,254
Cash outflow	$ 11,413,862	$ 10,373,526	$ 1,010,548	$ 3,532,123	$ 15,252	$ 26,345,311

Additional information about the maturity analysis for lease liabilities:

	< 1 Year	1-5 Years	5-10 Years	10-15 Years	15-20 Years	20+ Years
Lease liabilities	$ 8,543	$ 34,459	$ 15,252	$ -	$ -	$ -

Contractual Maturities for Its Non-derivative Financial Liabilities
December 31, 2023

Unit: NT Shousand

Financial Liabilities	Terms of Payments					Total
	Current	Within 3 months	3-12 Months	1-5 Years	5+ Years
Short-term borrowings	$ -	$ 1,775,000	$ -	$ -	$ -	$ 1,775,000
Commercial paper payable	-	4,855,000	-	-	-	4,855,000
Security deposit	1,208,389	-	-	-	-	1,208,389
Deposits payable for securities financing	1,310,746	-	-	-	-	1,310,746
Futures traders Equity	1,726,551	-	-	-	-	1,726,551
payables
Trade payables	5,093,870	-	-	-	-	5,093,870
Other payables	11,131	225,759	459,691	-	-	696,581
Collection payable - collected payment of shares underwritten	16,934	-	-	-	-	16,934
Lease liabilities	-	2,260	6,511	34,300	17,357	60,428
Long term liabilities due within one year	-	-	500,000	-	-	500,000
Long-term commercial paper payable	-	-	-	3,000,000	-	3,000,000
Cash outflow	$ 9,367,621	$ 6,858,019	$ 966,202	$ 3,034,300	$ 17,357	$ 20,243,499

Additional information about the maturity analysis for lease liabilities:

Lease liabilities	< 1 Year	1-5 Years	5-10 Years	10-15 Years	15-20 Years	20+ Years
	$ 8,771	$ 34,300	$ 17,357	$ -	$ -	$ -

Contractual Maturities for Its Non-derivative Financial Liabilities
March 31, 2023

Unit: NT Shousand

Financial Liabilities	Terms of Payments					Total
	Current	Within 3 months	3-12 Months	1-5 Years	5+ Years
Short-term borrowings	$ -	$ 1,175,000	$ -	$ -	$ -	$ 1,175,000
Commercial paper payable	-	6,296,586	-	-	-	6,296,586
Security deposit	701,410	-	-	-	-	701,410
Deposits payable for securities financing	711,246	-	-	-	-	711,246
Futures traders Equity	1,654,194	-	-	-	-	1,654,194
Payables
Trade payables	4,197,384	-	-	-	-	4,197,384
Other payables	9,128	43,376	452,178	-	-	504,682
Receipts under custody item-collection and underwriting	-	-	-	-	-	-
Lease liabilities	-	2,075	6,031	37,691	12,821	58,618
Cash outflow	$ 7,273,362	$ 7,517,037	$ 458,209	$ 37,691	$ 12,821	$ 15,299,120

Additional information about the maturity analysis for lease liabilities

	< 1 Year	1-5 Years	5-10 Years	10-15 Years	15-20 Years	20+ Years
Lease liabilities	$ 8,106	$ 37,691	$ 12,821	$ -	$ -	$ -

iv. Stress test of liquidity risk

Shinkong International Securities conducts stress testing from time to time to test the changes in Shinkong International Securities’ capital liquidity under extreme and abnormal conditions to ensure Shinkong International Securities’ capital liquidity. The stress scenario includes market volatility, various credit events and unforeseen financial market liquidity tightening, etc., which may generate capital liquidity stress. With the change of the positive and negative fund gaps in each period.

In the event of a funding shortfall under a stressful situation, the financial unit will report the results to the risk management team, if necessary, prevent the occurrence of stressful events by the following procedures:

A. Dispose current assets in a planned manner to reduce the impact of unfavorable market prices and obtain funds.

B. Adjust (reduce or suspend) the capital requirements of some businesses.

C. Dispose current assets or long-term investment positions in a planned manner to obtain funds.

D. Capital increase or other financing methods.

E. Request the parent company and affiliates to provide appropriate support.

e. Capital risk management

In order to cope with the company's business scale, important operation plans, and future capital increase plans, SKIS calculates the capital adequacy ratio in accordance with Article 59 of the Regulations Governing Securities Firms, in order to manage operational risks and evaluate the structure of its own capital. In order to maintain stable operations, SKIS's capital adequacy ratio is in principle set at no less than 250% as the target for capital adequacy management.

Shinkong International Securities' capital adequacy management procedures are as follows:

i. Relevant units should calculate, monitor and analyze capital adequacy ratio of Shinkong International Securities on a monthly basis.

ii. Simulate the capital adequacy result and provide to relevant departments based on the assumptions of the business plan, policy directions, investment strategy and other material impacts.

iii. When the capital adequacy is lower than the standard as required, the relevant departments should report to the board of directors or the Chief Executive Officer and may start to plan on the resolutions. Any major decisions should first be approved by the board of directors before implementation.

A Capital increase.

B Adjustment of business strategies.

Shinkong International Securities’ capital adequacy ratio was as follows:

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March 31, 2024

Items	March 31, 2024
Eligible capital
Tier 1 capital	$ 5,803,331
Tier 2 capital	25,751
Tier 3 capital	-
Minus assets	( 433,357 )
Total net eligible capital	$ 5,395,725
Equivalent amount of operating risk
Equivalent amount of market risk	$ 34,854
Equivalent amount of credit risk	708,403
Equivalent amount of operating risk	381,927
Total equivalent amount	$ 1,125,184
Capital adequacy ratio	480%

December 31, 2023

Items	December 31, 2023
Eligible capital
Tier 1 capital	$ 5,497,288
Tier 2 capital	25,750
Tier 3 capital	-
Minus assets	( 418,422 )
Total net eligible capital	$ 5,104,616
Equivalent amount of operating risk
Equivalent amount of market risk	$ 29,145
Equivalent amount of credit risk	469,818
Equivalent amount of operating risk	359,519
Total equivalent amount	$ 858,482
Capital adequacy ratio	595%

March 31, 2023

Items	March 31, 2023
Eligible capital
Tier 1 capital	$ 5,334,694
Tier 2 capital	21,055
Tier 3 capital	-
Minus assets	( 418,636 )
Total net eligible capital	$ 4,937,113
Equivalent amount of operating risk
Equivalent amount of market risk	$ 24,855
Equivalent amount of credit risk	383,461
Equivalent amount of operating risk	359,519
Total equivalent amount	$ 767,835
Capital adequacy ratio	643%

Note 1: Capital adequacy ratio = Net eligible capital ÷ Equivalent amount of operating risk.

Note 2: Net eligible capital = Tier 1 capital + Tier 2 capital + Tier 3 capital -

assets.

Note 3: Equivalent amount of operating risk = Equivalent amount of market risk + Equivalent amount of credit risk + Equivalent amount of operating risk.

48. RESTRICTIONS AND ENFORCEMENT OF FINANCIAL RATIOS UNDER THE FUTURES TRADING ACT

Shinkong International Securities Co., Ltd. - Futures Division

Legal basis: he Rules Governing Futures Commission Merchants

Unit: NT $thousand

Rule No.	Formula	March 31, 2024		December 31, 2023		March 31, 2023		Standard	Status of Compliance with Standard
		Calculation	Ratio	Calculation	Ratio	Calculation	Ratio
17	Total equity	597,947	19.60	580,390	23.49	527,936	18.02	≥1	Met
	(Total liabilities-Futures Trader Equity)	2,197,456-2,166,949	times	1,751,262-1,726,551	times	1,683,492-1,654,194	times
17	Current assets	2,717,165	1.24	2,252,258	1.29	2,133,178	1.27	≥1	o
	Current liabilities	2,195,879	times	1,749,637	times	1,681,726	times
22	Total equity	597,947	186.86%	580,390	181.37%	527,936	164.98%	≥60%	o
	Minimum paid-in capital (Note)	320,000		320,000		320,000		≥40%
22	Adjusted net capital	596,924	91.74%	578,598	136.16%	527,103	130.64%	≥20%	o
	Futures traders' open position Total customer margin required	650,634		424,954		403,476		≥15%

Note: "Minimum paid-in capital" shall be calculated based on the capital amount or allocated working capital in accordance with the futures dealer establishment standards, and the Company shall calculate based on the allocated working capital.

49. FUTURES BROKERAGE AND DEALING BUSINESS RISK

When clients entrust Shinkong International Securities' futures department with futures trading, they are required to deposit a certain proportion of the buying and selling amount as margin. However, the leverage effect resulting from futures trading margins can lead to substantial profits or significant losses for clients. To prevent client losses from adversely affecting Shinkong International Securities' financial security, the company follows regulations. Each day, based on the market settlement price of outstanding futures contracts entrusted by clients, Shinkong International Securities calculates changes in margin and option premium accounts. If the margin gradually decreases to the specified amount due to market price fluctuations, the company promptly notifies clients to replenish the margin. Failure to do so within the stipulated period may result in Shinkong International Securities forcibly liquidating the client's held futures contracts.

50. NOTE DISCLOSURES

(1) Information about significant transactions:

a. Financing provided to others.(Table 6)
b. Endorsement and guarantee for others.(Tables 1 and 7)
c. Marketable securities held.(Tables 2, 8 and 11)
b. Marketable securities acquired or disposed of at costs or prices of at least NT $300 million or 20% of the paid-in capital.(None)
c. Acquisition of individual real estate at costs of at least NT$300 million or 20% of the paid-in capital (None)

d. Disposal of individual real estate at prices of at least NT$300 million or 20% of the paid-in capital (None)
e. Total purchases from or sales to related parties amounting to at least NT $100 million or 20% of the paid-in capital.(Tables 3, 9 and 12)
f. Receivables from related parties amounting to at least NT $100 million or 20% of the paid-in capital.(Tables 4, 10 and 13)
g. Trading in derivative instruments (Note 8)
h. Other: Intercompany relationships and significant intercompany transactions.(Table 14)

(2) Information on investees (Tables 5 and 15)
(3) Information on investments in Mainland China

a. Information on any investee company in mainland China, showing the name, principal business activities, item, paid-in capital, method of investment, inward and outward remittance of funds, ownership percentage, net income of investees, investment income or loss, carrying amount of the investment at the end of the period, repatriations of investment income, and limit on the amount of investment in the mainland China area.(Table 16)
b. Any of the following significant transactions with investee companies in mainland China, either directly or indirectly through a third party, and their prices, Terms of Payments, and unrealized gains or losses (Table 17):

i. The amount and percentage of purchases and the balance and percentage of the related payables at the end of the period.
ii. The amount and percentage of sales and the balance and percentage of the related receivables at the end of the period.
iii. The amount of property transactions and the amount of the resultant gains or losses.
iv. The balance of negotiable instrument endorsements or guarantees or pledges of collateral at the end of the period and the purposes.
v. The highest balance, the end of period balance, the interest rate range, and total current period interest with respect to financing of funds.
vi. Other transactions that have a material effect on the profit or loss for the year or on the financial position, such as the rendering or receipt of services.

(4) Information on major shareholders: List all shareholders with ownership of 5% or greater showing the name of the shareholder, the number of shares owned, and percentage of ownership of each shareholder.(Table 18)

51. DEPARTMENTAL INFORMATION

Information reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance focuses on the types of goods or services delivered or provided. The Group's reportable segments are polyester, financial securities, photoelectric and other.

(1) Segment revenue and results

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	January 1 to March 31, 2024
	Polyester	Finance and securities	Optronics	Others	Total
Revenue	$7,709,005	$1,549,897	$1,611,374	$13,007	$10,883,283
Profit before income tax	$143,740	$473,607	$73,073	$878	$691,298
	January 1 to March 31, 2023
---	---	---	---	---	---
	Polyester	Finance and securities	Optronics	Others	Total
Revenue	$6,741,493	$1,217,376	$1,169,835	$16,664	$9,145,368
Profit before income tax	$121,590	$337,100	($190,903)	($1,537)	$266,250

Segment revenue reported above represents revenue generated from external customers.

Segment profit represented the profit before tax earned by each segment without Tax expense. This was the measure reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance.

(2) Department Head Assets

	March 31, 2024	December 31, 2023	March 31, 2023
Assets
Polyester	$43,760,847	$42,981,000	$44,692,855
Finance and securities	147,818,111	139,499,651	128,400,588
Optronics	9,686,091	9,677,827	7,248,536
Others	2,874,970	2,885,050	2,831,906
Total segment assets	$204,140,019	$195,043,528	$183,173,885

Shinkong Synthetic Fibers Corporation
Guarantees and endorsements for other parties
January 1 to March 31, 2024

TABLE 1
Unit: NT $thousands

No.	Endorsement/Guarantee Provider	Guaranteed Party		Limit of endorsement and guarantee for a single enterprise	Maximum endorsement Balance of guarantee	Ending endorsement Balance of guarantee	Actual Borrowing Amount	Secured by properties Endorsement/ Guarantee Amount	Ratio of Accumulated Endorsement/ Guarantee to Net Equity in Latest Financial Statements (%)	Endorsements and guarantees Maximum Limit	Endorsement/ Guarantee Given by Parent on Behalf of Subsidiaries	Endorsement/ Guarantee Given by Subsidiaries on Behalf of Parent	Mainland China Endorsements and guarantees
		Company	Relationship
0	Shinkong Synthetic Fibers Corporation	TacBright Optronics	2	(Note 3)	$ 1,311,628	$ 1,289,268	$ 544,954	$ -	3.62	(Note 5)	Y	-	-
		Pan Asian Plastics	2	(Note 3)	100,000	-	-	-	-	#	Y	-	-
		Hsingshing Investment Co., Ltd.	2	(Note 3)	500,000	500,000	-	-	1.40	#	Y	-	-
		Shin Chiun Industrial Co., Ltd.	2	(Note 3)	230,000	80,000	-	-	0.22	#	Y	-	-
		Shinkong Engineering Co., Ltd.	2	(Note 3)	130,000	130,000	44,000	-	0.36	#	Y	-	-

Limit calculation:
Note 1: The number column is illustrated as follows:
(1) Parent company: 0.
(2) Subsidiaries are numbered from 1.
Note 2: Relationships between the endorsement/guarantee provider and the guaranteed party can be classified as the following 7 category:
(1) A company with which it does business.
(2) A company in which the Company directly and indirectly holds more than 50% of the voting shares.
(3) A company that directly and indirectly holds more than 50% of the voting shares in the company.
(4) Companies in which the Company holds, directly or indirectly, 90% or more of the voting shares.
(5) The Company fulfills its contractual obligations by providing mutual endorsements/guarantees for another company in the same industry or for joint builders for purposes of undertaking a construction project.
(6) A company that all capital contributing shareholders make endorsements/guarantees for their jointly invested company in proportion to their shareholding percentages.
(7) Companies in the same industry provide among themselves joint and several security for a performance guarantee of a sales contract for pre-construction homes pursuant to the Consumer Protection Act for each other.
Note 3: The limits on domestic endorsement or guarantee amount provided to each guaranteed party = Net equity NT $35,657,845 thousand × 20% = $7,131,569 thousand.
Note 4: The limit on foreign endorsement or guarantee amount provided to each guaranteed party = Net equity NT $35,657,845 thousand × 30% = 10,697,354 thousand.
Note 5: Limit on total amount of guarantees and endorsements = Net equity NT $35,657,845 thousand × 50% = NT $17,828,923 thousand

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Shinkong Synthetic Fibers Corporation

MARKETABLE SECURITIES HELD

March 31, 2024

Unit: In NT $thousand, unless stated otherwise

TABLE 2

Holding Company	Type and Name of Marketable Securities	Relationship with the securities issuer	Account	Ending Balance
				Number of Shares	Amount	Shareholding Ratio (%)	Fair Value Shares
Shinkong Synthetic Fibers Corporation	Fund beneficiary certificate
	Shin Kong Hang Seng TECH Index Fund	Related party in substance	Financial assets at FVTPL - current	500,000	$ 2,000	-	$ 2,000
	Equity investment
	Hsin Ba Corporation (formerly Hsin Da)	None	Financial assets at FVTOCI - current	12	$ 1	-	$ 1
	The Great Taipei Gas Corporation	Related party in substance	"	20,213,826	653,917	3.91	653,917
					$ 653,918		$ 653,918
	Limited partnership funds
	Renaissance Capital Limited Partnership	None	Financial assets at FVTPL - non-current	6.41	$ 50,224	6.41	$ 50,224
	Whitesun Capital Limited Partnership	"	"	2.50	13,500	2.50	13,500
					$ 63,724		$ 63,724
	Equity investment
	Overseas Investment & Development Corp.	"	Financial assets at FVTOCI - non-current	4,000,000	$ 54,880	4.44	$ 54,880
	Li Yu Venture Capital Investment Corp.	"	"	174,455	2,770	1.49	2,770
	Shin Kong Chao Feng	Related party in substance	"	200,000	31,199	2.22	31,199
	PC Home Venture Fund Corp.	None	"	78,540	1,306	3.03	1,306
	Budworth Investment Limited	"	"	45,500	-	5.00	-
	Great Taipei Broadband Co., Ltd.	Related party in substance	"	2,500,000	7,525	1.67	7,525
	Zacros Taiwan Co., Ltd.	None	"	10,000,000	84,895	9.44	84,895
	Wave-In Communication Inc.	"	"	2,503,142	33,842	13.04	33,842
	Shin Kong iEcofun Corporation	"	"	1,327,736	7,701	18.81	7,701
	IIH Biomedical Venture Fund I Co., Ltd.	"	"	3,000,000	46,061	4.85	46,061
	Pro Union Motor Co., Ltd.	"	"	6,875,951	237,022	21.04	237,022
	Pro Motor Co., Ltd.	"	"	4,287,288	156,444	16.13	156,444
	Pro Rental & Leasing Co., Ltd.	"	"	5,277,251	208,761	18.93	208,761

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Type and Name of Marketable Securities	Relationship with the securities issuer	Account	Ending Balance
			Number of Shares	Amount	Shareholding Ratio (%)	Fair Value Shares
Equity investment
Green Life Technology Corporation	None	Financial assets at FVTOCI - non-current	10,000,000	$ 1,300	6.50	$ 1,300
Earthbook Inc.	〃	〃	3,600,000	2,340	8.67	2,340
Research Innovation Capital Corporation	〃	〃	5,000,000	24,572	14.88	24,572
Taiwan Cement Corp.	〃	〃	649	21	-	21
Shin Kong Textile Co., Ltd.	Related party in substance	〃	28,378,958	1,294,081	9.46	1,294,081
Shin Kong Financial Holding Co., Ltd.	〃	〃	172,550,238	1,392,480	1.11	1,392,480
Taishin Financial Holding Co., Ltd.	Related personnel with the Company's chairman	〃	141,305,541	2,543,500	1.13	2,543,500
Century Development Corporation	None	〃	12,334,854	229,512	3.52	229,512
Universal Venture Capital Investment Corporation	〃	〃	5,600,000	54,040	4.65	54,040
O-Bank Co., Ltd.	〃	〃	308	3	-	3
Evergreen Steel Corp.	〃	〃	890,000	110,805	0.21	110,805
Shin Kong Mitsukoshi Department Store Co., Ltd.	Same chairman with the Company	〃	24,401,636	881,143	1.96	881,143
				$ 7,406,203		$ 7,406,203

Shinkong Synthetic Fibers Corporation

Total purchases from or sales to related parties amounting to at least NT $100 million or 20% of the paid-in capital.

January 1 to March 31, 2024

TABLE 3
Unit: In NT $thousand, unless stated otherwise

Purchase (sales) company	Transaction object	Relationship	Transaction details				Transactions with terms different from others		Notes/Accounts Receivable (Payable)
			Purchase (sales)	Carrying Amount	% of Total	Credit period	Unit price	Credit period	Balance	% of Total
Shinkong Synthetic Fibers Corporation	Thai Shinkong Industry Corporation Ltd.	Investee Company valued by using the equity method	Purchases	$ 445,894	8.97	(Note)	(Note)	(Note)	Trade payables ($ 184,658)	( 10.51)
	Shinkong Polyester Film Corp., Ltd.	Investee Company valued by using the equity method	Sales	( 389,125 )	( 6.71 )	n	n	n	Accounts receivables 517,214
Other receivables 3,187	17.69
	Pan Asian Plastics Industry Corp.	Investee Company valued by using the equity method	Sales	( 153,643 )	( 2.65 )	n	n	n	Accounts receivables 161,282
Other receivables 26,085	0.81
	Topbottle Resources Technology Corporation	Associate	Purchases	133,832	2.69	According to the contract signed by both parties	According to the contract signed by both parties	According to the contract signed by both parties	Trade payables ( 26,474)	( 1.51)

Note: Please refer to Table 14.

Shinkong Synthetic Fibers Corporation
Receivables from related parties amounting to at least NT $100 million or 20% of the paid-in capital
March 31, 2024

TABLE 4
Unit: In NT $thousand, unless stated otherwise

Companies of account receivable	Transaction object	Relationship	Ending Balance	Turnover rate	Overdue receivables		Amounts Received in Subsequent Period	Allowance for Impairment Loss
					Carrying Amount	Action taken
Shinkong Synthetic Fibers Corporation	Shinkong Polyester Film Corp., Ltd.	Investee Company valued by using the equity method	Accounts receivables $ 517,214	3.03	$ -	-	$ 109,224	$ -
	Pan Asian Plastics Industry Corp.	n	161,282	4.06	-	-	52,289	-

-130-

Shinkong Synthetic Fibers Corporation

Information on investees, locations and other information

January 1 to March 31, 2024

TABLE 5
Unit: In NT $thousand, unless stated otherwise

Name of investor	Investee companies	Location	Main Businesses and Products	Original investment amount		Ending balance			Net Income (Loss) of the Investee	Share of Profit (Loss)
				Ending balance	End of last year	Number of Shares	Percentage%	Amount
Shinkong Synthetic Fibers Corporation	Pan Asian Plastics Corp.	Taipei City	Manufacturing and sales of polyester pellets and polyester preforms	$ 363,0	$ 363,024	50,569,938	100.00	$ 2,203,323	($ 6,542)	($ 3,896)
	Hsinghong Investment Co., Ltd.	Taipei City	Investment in and construction of business and public housing	1,318,0	1,318,000	160,900,000	100.00	1,746,228	( 798)	( 798)
	Shinkong Engineering Co., Ltd.	Taipei City	Contracting for various projects such as air pollution prevention, piping engineering and machine installation	665,0	665,095	38,543,818	100.00	561,155	2,428	2,428
	Shinpont Industry Inc.	Taipei City	Synthetic fibers manufacturing, textiles wholesale and retail	252,5	252,540	25,245,000	49.99	552,706	80,566	40,283
	Shin Chuan Industrial Co., Ltd. (SEC)	Taipei City	Investment and related business	715,0	715,000	83,800,000	100.00	891,801	4,386	4,386
	MAXIMA PACIFIC LTD.	British Virgin Islands	Investment			78,055	100.00	2,055,371	( 2,778)	( 2,778)
	SSFC INVESTMENT LTD.	British Virgin Islands	Investment	375,4	375,467	191,472	100.00	2,872,774	70,316	69,363
	UBright Optronics Corp.	Taoyuan City	Precision chemical materials and mold manufacturing wholesale, etc.	670,4	670,481	45,679,828	56.09	1,816,829	158,536	89,747
	Shinkong Polyester Film Corp., Ltd.	Taipei City	Electronic parts and components manufacturing	1,603,0	1,603,047	85,992,425	100.00	307,724	( 128,293)	( 128,293)
	Shinkong International Securities Co., Ltd.	Taipei City	Consignment trading of securities and futures	1,210,3	1,210,370	118,072,262	77.73	4,572,078	306,043	237,888
	Tai Jin Investment Co., Ltd.	Taipei City	Investment	3,5	3,505	1,111,315	48.57	7,161	( 20)	( 10)
	Pan Asian Plastics Industry Corp.	Taipei City	Manufacturing and sales of polyester pellets and polyester preforms	700,0	700,000	53,964,955	100.00	531,616	( 13,429)	( 13,267)
	Tac Bright Optronics Corp.	Miaoli County	Precision chemical materials - synthetic resin and plastic manufacturing	2,740,0	2,740,086	263,586,455	56.86	1,183,097	( 8,186)	( 4,654)
	Shin Kong Technologies Corporation	Taipei City	Electronic Information Software Business	30,5	30,528	3,263,250	100.00	33,297	76	76
	Taipei Star Bank	Taipei City	Commercial bank	1,131,5	1,131,535	84,968,278	27.07	1,488,567	31,982	8,656
	Chi Jian Human Resources & Management Co., Ltd.	Taoyuan City	Human resources management consulting	5,0	5,000	(Note 1)	100.00	5,466	( 14)	( 14)
	Hsinshin Asset Management Co., Ltd. (HAM)	Taipei City	Housing and building development for sale and rental	50,0	50,000	5,370,000	100.00	68,856	460	460
	Shinkong International Leasing Corp.	Taipei City	Leasing of various businesses	1,282,0	1,282,000	130,000,000	100.00	1,489,621	31,556	31,556
	Otobuy Co., Ltd.	Taipei City	Other Wholesale of machinery and equipment	6,0	6,000	600,000	60.00	3,656	( 56)	( 33)
	Shin Kong Applied Materials Co., Ltd.	Taipei City	Other chemical materials manufacturing	11,0	11,000	1,100,000	73.33	5,805	( 158)	( 116)
	Topbottle Resources Technology Corporation	Tainan City	Manufacturing of synthetic materials and plastic product	15,0	15,000	1,488,000	20.00	17,263	( 1,601)	( 320)
	Far Trust Consumer Finance Co., Ltd. (Far Trust)	New Taipei City	Overdue accounts receivables management service	356,2	356,250	30,599,867	30.97	436,017	12,328	3,818
	Ecofun Lab Corporation	Taoyuan City	Crop cultivation, wholesale of vegetables and fruits and retail sale of agricultural products	18,4	18,400	1,840,000	33.33	8,897	-	-
	Shinsol Advanced Chemical Corporation	Tainan City	Precision chemical material manufacturing	373,5	373,588	37,358,859	43.63	331,480	( 8,058)	( 3,516)

Note: This is a limited company, the proportion of ownership is calculated based on the amount of capital contribution.
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Name of investor	Investee companies	Location	Main Businesses and Products	Original investment amount		Ending balance			Net Income (Loss) of the Investee	Share of Profit (Loss)
				Ending balance	End of last year	Number of Shares	Percentage%	Amount
	Shinkong Fintech Co., Ltd. (SKF)	Taipei City	Information software service	$ 50,000	$ 50,000	5,000,000	100.00	$ 48,554	($ 368)	($ 368)
	Shinkong Youth Co., Ltd. (SKY)	Taoyuan City	Manufacture and sale of chemical fiber and plastic related products	510,000	510,000	51,000,000	100.00	440,375	( 8,810)	( 8,810)
	SHINKONG VIETNAM LLC.	Vietnam	Manufacture and sale of chemical fiber and plastic related products	(Note 2)	84,652	(Note 1)	(Note 2)	(Note 2)	187	187
	Thai Shinkong Industry Corporation Ltd.	Thailand	Manufacturing and sales of plastic, polyester film, and PET	2,344,736	2,344,736	117,499,997	62.04	2,269,011	( 81,471)	( 50,544)
	Chi Teng Construction Co., Ltd. (CTC)	Taipei City	Residence and building development activities and renting and leasing of real estate	5,000	5,000	500,000	100.00	4,950	-	-
	SHINKONG VIETNAM ENTERPRISE COMPANY LIMITED	Vietnam	Wholesale Trade	16,206	16,206	(Note 1)	100.00	14,621	( 343)	( 343)
SSFC INVESTMENT LTD.	Dayspring Ltd.	Hong Kong	Investment	USD 53,540	USD 53,540	374,485,659	100.00	RMB 401,322	-	-
	Shinkong Applied Materials (Jiangsu) Company Limited	China	Sale of synthetic materials, fibers and manufacturing of plastic product	USD 3,060	USD 3,060	(Note 1)	100.00	RMB 101,500	RMB 4,088	-
Hsingshing Investment Co., Ltd.	Da Chun Universe Investment Co., Ltd.	Taichung City	Investment	9,000	9,000	(Note 1)	45.00	4,802	( 149)	-
Tac Bright Optronics Corp.	MAXPRO LTD.	British Virgin Islands	General investment	1,743,557	1,743,557	54,204,000	100.00	1,612	-	-
MAXPRO LTD.	LOFO HOLDING GmbH	Germany	General investment	1,743,507	1,743,507	(Note 1)	100.00	1,600	-	-
Shinkong International Securities Co., Ltd.	Shin Kong Investment Consultant Co., Ltd.	Taipei City	Securities investment consulting	20,000	20,000	2,000,000	100.00	30,478	277	-
	Shin Kong Insurance Agent Co., Ltd.	Taipei City	Life insurance agent	3,000	3,000	2,000,000	100.00	52,470	5,863	-
	Shin Kong Property Insurance Agency Co., Ltd. Company	Taipei City	Property insurance agent	2,997	2,997	1,000,000	100.00	23,489	( 325)	-
Shin Chiun Industrial Co., Ltd. (SEC)	UBright Optronics Corp.	Taoyuan City	Precision chemical materials and mold manufacturing wholesale, etc.	96,317	96,317	1,587,081	1.95	114,351	158,536	-
	Tac Bright Optronics Corp.	Miaoli County	Precision chemical materials - synthetic resin and plastic manufacturing	153,270	153,270	10,218,000	2.20	102,641	( 8,186)	-
	Intelligent Medical Big Data Co., Ltd.	Taipei City	Consulting, biotechnology research and development service	25,000	25,000	2,500,000	83.33	1,511	( 6)	-
Pan Asian Plastics Corp.	Tai Shin Leasing & Financial Co., Ltd.	Taipei City	Leasing and distribution of various businesses	520,000	520,000	22,200,000	30.00	1,687,915	( 25,835)	-
	Hsin Lung Chemical Co., Ltd. (HLC)	Taipei City	Manufacturing of magnetic tapes for recording and video disks and polyester film	338,509	338,509	4,689,900	93.80	564,676	( 983)	-
Shinkong Engineering Co., Ltd.	UBright Optronics Corp.	Taoyuan City	Precision chemical materials and mold manufacturing wholesale, etc.	36,906	36,906	1,038,000	1.27	42,822	158,536	-
Shinkong International Leasing Corp.	Far Trust Consumer Finance Co., Ltd. (Far Trust)	New Taipei City	Overdue accounts receivables management service	211,578	211,578	19,814,183	20.06	257,139	12,328	-
	Shinkong Power Technology Co., Ltd.	Taipei City	Solar industry business	170,000	170,000	17,000,000	85.00	173,870	94	-
	Jin Liang Power Service Co., Ltd.	Taipei City	Solar industry business	380,754	380,754	22,408,213	89.63	380,429	3,655	-

Note 1: The company is a limited company, and the shareholding ratio is calculated based on the capital contribution.
Note 2: SHINKONG VIETNAM LLC. has been liquidated in February 2024.
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Name of investor	Investee companies	Location	Main Businesses and Products	Original investment amount		Ending balance			Net Income (Loss) of the Investee	Share of Profit (Loss)
				Ending balance	End of last year	Number of Shares	Percentage %	Amount
Shinkong International Leasing Corp.	Shinkong Energy Corporation	Taipei City	Solar industry business	$ 100,000	$ 100,000	10,000,000	100.00	$ 103,230	($ 718)	$ -
Shinkong Energy Corporation	Co-creation Ingenuity Renewable Corp.	Taipei City	Solar industry business	40,500	40,500	4,500,000	100.00	45,122	502	-
Shin Kong Technologies Corporation	Shin Kong Innovations Co., Ltd.	Taipei City	Electronic Information Software Business	2,000	2,000	2,000,000	66.67	3,022	( 137)	-
Far Trust International Finance Co., Ltd. (Far Trust)	Otobuy Co., Ltd.	Taipei City	Other Wholesale of machinery and equipment	4,000	4,000	400,000	40.00	2,437	( 56)	-
	Far Trust International Leasing Co., Ltd. (Far Trust Leasing)	New Taipei City	Overdue accounts receivables management service	200,000	200,000	20,000,000	100.00	219,911	1,722	-
	Far Trust Car Rental Co., Ltd. (Far Trust Car Rental)	Taipei City	Car Rental	50,000	50,000	5,000,000	100.00	46,410	( 1,335)	-
UBright Optronics Corp.	Rise Concept Enterprises Limited	Hong Kong	luminance enhancement film, etc.	7,695	7,695	(Note)	100.00	( 11,332)	( 866)	-
Rise Concept Enterprises Limited	Suzhou UBright Optronics Corp.	China	Brightness Enhancement Film Cutting	RMB 1,000	RMB 1,000	(Note)	100.00	1,392	( 535)

Note: This is a limited company, the proportion of ownership is calculated based on the amount of capital contribution.

Shinkong Synthetic Fibers Corporation

FINANCING PROVIDED BY INVESTEES TO OTHERS

January 1 to March 31, 2024

TABLE 6
Unit: In NT $thousand, unless stated otherwise

No.	Financing company	Borrower	Financial Statement Account	Related parties	Highest Balance for the Period	Ending Balance	Actual Borrowing Amount	Interest rate Range	Nature of Financing	Business Transaction Amounts	Reasons for Short-term Financing	Allowance for Impairment Loss	Collateral		Financing Limit for Each Borrower	Aggregate Financing Limit
													Item	Value
1	Shinkong International Leasing Corp.	Jin Liang Power Service Co., Ltd.	Other receivables	Yes	$ 50,000	$ -	$ -	4.125%	2	$ -	Operating turnover	$ -	None	$ -	$ 595,906 (Note 2)	$ 595,906 (Note 2)
1	Shinkong International Leasing Corp.	Shinkong Power Technology Co., Ltd.	Other receivables	Yes	70,000	70,000	-	4%	2	-	Operating turnover	-	None	-	595,906 (Note 2)	595,906 (Note 2)
2	Far Trust Consumer Finance Co., Ltd. (Far Trust)	Far Trust Car Rental Co., Ltd. (Far Trust Car Rental)	Other receivables	Yes	50,000	50,000	-	3%	2	-	Operating turnover	-	None	-	512,871 (Note 3)	512,871 (Note 3)
2	Far Trust Consumer Finance Co., Ltd. (Far Trust)	Far Trust International Leasing Co., Ltd. (Far Trust Leasing)	Other receivables	Yes	100,000	100,000	20,000	3%	2	-	Operating turnover	-	None	-	512,871 (Note 3)	512,871 (Note 3)
3	Shin Chiu Industrial Co., Ltd. (SEC)	Shinkong International Leasing Corp.	Other receivables	Yes	250,000	-	-	2.1%	2	-	Operating turnover	-	None	-	356,720 (Note 4)	356,720 (Note 4)
3	Shin Chiu Industrial Co., Ltd. (SEC)	Shin Kong Technologies Corporation	Other receivables	Yes	80,000	80,000	-	2%	2	-	Operating turnover	-	None	-	356,720 (Note 4)	356,720 (Note 4)
3	Shin Chiu Industrial Co., Ltd. (SEC)	Pan Asian Plastics Corp.	Other receivables	Yes	80,000	80,000	50,000	2%	2	-	Operating turnover	-	None	-	356,720 (Note 4)	356,720 (Note 4)
3	Shin Chiu Industrial Co., Ltd. (SEC)	Pan Asian Plastics Corp.	Other receivables	Yes	100,000	-	-	2%	2	-	Operating turnover	-	None	-	356,720 (Note 4)	356,720 (Note 4)
4	Dayspring Industrial Co.	Shinkong Synthetic Fibers Corporation	Other receivables	Yes	1,322,400 (RMB 300,000)	1,322,400 (RMB 300,000)	-	2.65% - 2.7%	2	-	Operating turnover	-	None	-	1,415,221 (Note 5)	1,415,221 (Note 5)
5	UBright Optronics Corp.	Rise Concept Enterprises Limited	Other receivables	Yes	224,000 (USD 7,000)	112,000 (USD 3,500)	96,000 (USD 3,000)	0.8%	2	-	Operating turnover	-	None	-	659,028 (Note 6)	1,318,055 (Note 7)

Note 1: The number column is illustrated as follows:
(1) Parent company: 0.
(2) Subsidiaries are numbered from 1.
Note 2: The "limit of loan to individual borrower" and "total limit of loan" are 40 percent of the net value of Shinkong International Leasing Corp..
Note 3: The "limit of loan to individual borrower" and "total limit of loan" are 40 percent of the net value of Fartrust Consumer Finance Co., Ltd..
Note 4: The "limit of loan to individual borrower" and "total limit of loan" are 40 percent of the net value of Shin Chiu Industrial Co., Ltd..
Note 5: The "limit of loan to individual borrower" and "total limit of loan" are 80 percent of the net value of Dayspring Ltd..
Note 6: The "limit of financing to individual borrowers" is 20 percent of the net value of UBright Optronics Corp..
Note 7: "Aggregate Financing Limit" 40 per cent of the net value of UBright Optronics Corp..

Shinkong Synthetic Fibers Corporation
Information on endorsements and guarantees for others
January 1 to March 31, 2024

TABLE 7
Unit: In NT $thousand, unless stated otherwise

No.	Endorsement/Guarantee	Guaranteed Party		Limit of endorsement and guarantee for a single enterprise	Maximum endorsement Balance of guarantee	Ending endorsement Balance of guarantee	Actual Borrowing Amount	Secured by properties Endorsement/Guarantee Amount	Ratio of Accumulated Endorsement/Guarantee to Net Equity in Latest Financial Statements (%)	Aggregate Endorsement/Guarantee Limit	Endorsement/Guarantee Given by Parent on Behalf of Subsidiaries	Endorsement/Guarantee Given by Subsidiaries on Behalf of Parent	Mainland China Endorsements and guarantees
		Company Name	Relationship
1	Far Trust Consumer Finance Co., Ltd. (Far Trust)	Far Trust International Leasing Co., Ltd. (Far Trust Leasing)	2	(Note 4)	$ 2,250,000	$ 2,250,000	$ 2,199,595	$ -	175.48	(Note 5)	Y	-	-
		Far Trust Car Rental Co., Ltd. (Far Trust Car Rental)	2	(Note 4)	100,000	100,000	-	-	7.80	π	Y	-	-

Note 1: The number column is illustrated as follows:
(1) Parent company: 0.
(2) Subsidiaries are numbered from 1.

Note 2: Relationships between the endorsement/guarantee provider and the guaranteed party can be classified as the following 7 category:
(1) A company with which it does business.
(2) A company in which the Company directly and indirectly holds more than 50% of the voting shares.
(3) A company that directly and indirectly holds more than 50% of the voting shares in the company.
(4) Companies in which the Company holds, directly or indirectly, 90% or more of the voting shares.
(5) The Company fulfills its contractual obligations by providing mutual endorsements/guarantees for another company in the same industry or for joint builders for purposes of undertaking a construction project.
(6) A company that all capital contributing shareholders make endorsements/guarantees for their jointly invested company in proportion to their shareholding percentages.
(7) Companies in the same industry provide among themselves joint and several security for a performance guarantee of a sales contract for pre-construction homes pursuant to the Consumer Protection Act for each other.

Note 3: Far Trust Consumer Finance's limit on endorsement/guarantee for a single overseas subsidiary = $1,282,177 thousand × 30% = $384,653 thousand.

Note 4: Far Trust Consumer Finance's limit on endorsement/guarantee for a single domestic enterprise = $1,282,177 thousand × 500% = $6,410,885 thousand.

Note 5: Total limit on endorsement/guarantee provided by Far Trust Consumer Finance = $1,282,177 thousand × 500% = $6,410,885 thousand.

-135-

Shinkong Synthetic Fibers Corporation

MARKETABLE SECURITIES HELD BY THE INVESTEES WHICH THE COMPANY HAS CONTROL

March 31, 2024

TABLE 8
Unit: In NT $thousand, unless stated otherwise

Holding Company Name	Type and Name of Marketable Securities	Relationship with the securities issuer	Account	Ending Balance
				Number of Shares	Amount	Shareholding Ratio (%)	Fair Value
Shinkong International Securities Co., Ltd.	Equity investment	None	Financial assets at FVTPL - current	1,825,614	$ 67,770	-	$ 67,770
	Equity investment
	Taiwan Futures Exchange Co., Ltd.	#	Financial assets at FVTOCI - non-current	982,168	65,768	0.18	65,768
	Taiwan Stock Exchange Corporation	#	#	92,191	7,777	0.01	7,777
Taipei Star Bank	Notes investments	#	Financial assets at FVTPL - current	5,500	549,346	-	549,346
	Equity investment	#	Financial assets at FVTOCI - current	20,595,974	705,256	-	705,256
	Government bonds	#	#	6,260	1,706,258	-	1,706,258
	Corporate bonds	#	#	2,351	2,347,222	-	2,347,222
	Financial debentures	#	#	110	969,803	-	969,803
	Government bonds	#	Financial assets at amortized cost - non-current	40,000	4,863,730	-	4,863,730
	Corporate bonds	#	#	4,714	5,993,195	-	5,993,195
	Financial debentures	#	#	125	2,441,433	-	2,441,433
	Notes investments	#	#	5,010	5,010,000	-	5,010,000
MAXIMA PACIFIC LTD.	Equity investment
	Taishin Financial Holding Co., Ltd.	The entity's chairman is the second immediate family of the chairman of Shinkong Synthetic Fibers Corporation	Financial assets at FVTPL - current	2,837,524	51,075 (USD 1,596)	0.02	51,075 (USD 1,596)
	Equity investment
	Taishin Financial Holding Co., Ltd. Preferred Stock E	#	Financial assets at FVTOCI - current	82,811	4,281 (USD 134)	-	4,281 (USD 134)
Hsinghong Investment Co., Ltd.	Equity investment
	The Great Taipei Gas Corporation Equity investment	Related party in substance	#	117,962	3,816	0.02	3,816
	Shin Kong Textile Co., Ltd.	#	Financial assets at FVTOCI - non-current	1,951,507	88,989	0.65	88,989

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Holding Company Name	Type and Name of Marketable Securities	Relationship with the securities issuer	Account	Ending Balance
				Number of Shares	Amount	Shareholding Ratio (%)	Fair Value
Shin Chiun Industrial Co., Ltd. (SEC)	Equity investment
	Prince Housing & Development Corp.	None	Financial assets at FVTOCI - current	7,359	$ 77	-	$ 77
	Equity investment
	Shin Kong Textile Co., Ltd.	Related party in substance	Financial assets at FVTOCI - non-current	619,000	28,227	0.21	28,227
UBright Optronics Corp.	Fund beneficiary certificate
	Nomura Ireland Global Multi-income Fund	None	Financial assets at FVTPL - current	10,201	24,361	-	24,361
	Domestic corporate bonds				(USD 761)		(USD 761)
	Cathay Life Insurance subordinated corporate bond	#	#	50,000	50,059	-	50,059
	Taipei Star Bank Subordinated Perpetual Capital Securities	Sister companies	#	80,000	78,400	-	78,400
	Foreign corporate bonds
	BNP Paribas-overseas bonds (a)	None	#	400,000	12,557	-	12,557
					(USD 392)		(USD 392)
	BNP Paribas-overseas bonds (b)	#	#	450,000	14,126	-	14,126
					(USD 441)		(USD 441)
	Standard Chartered-overseas bonds (a)	#	#	200,000	6,264	-	6,264
					(USD 196)		(USD 196)
	Standard Chartered-overseas bonds (b)	#	#	430,000	13,471	-	13,471
					(USD 421)		(USD 421)
	Standard Chartered-overseas bonds (c)	#	#	430,000	13,471	-	13,471
					(USD 421)		(USD 421)
	ABN AMRO overseas bonds	#	#	840,000	26,665	-	26,665
					(USD 833)		(USD 833)
	TSMC Arizona USD corporate bonds	#	#	1,750,000	51,968	-	51,968
					(USD 1,624)		(USD 1,624)
	JPMorgan USD corporate bonds	#	#	1,750,000	56,000	-	56,000
					(USD 1,750)		(USD 1,750)
	UBS USD corporate bonds	#	#	1,750,000	55,496	-	55,496
					(USD 1,734)		(USD 1,734)
	Mizuho Financial Group USD corporate bonds (a)	#	#	1,000,000	31,104	-	31,104
					(USD 972)		(USD 972)
	Mizuho Financial Group USD corporate bonds (b)	#	#	750,000	23,304	-	23,304
					(USD 728)		(USD 728)
	Credit Agricole S.A. USD-denominated corporate bonds	#	#	1,250,000	41,760	-	41,760
				(USD 1,305)		(USD 1,305)
Bank of America corporate bonds	#	#	1,250,000	41,360	-	41,360
				(USD 1,293)		(USD 1,293)
Sumitomo Mitsui Financial Group Inc. corporation bonds	#	#	1,250,000	33,256	-	33,256
				(USD 1,039)		(USD 1,039)
American Express corporate bonds	#	#	1,250,000	40,520	-	40,520
				(USD 1,266)		(USD 1,266)

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Holding Company Name	Type and Name of Marketable Securities	Relationship with the securities issuer	Account	Ending Balance
				Number of Shares	Amount	Shareholding Ratio (%)	Fair Value
UBright Optronics Corp.	Equity investment
Shin Kong Financial Holding Co., Ltd.
Preferred Stock B
OMVO Technology Inc.	The chairman of the company and Shinkong Synthetic Fibers Corporation
The second immediate family of the Chairman
None	Financial assets at FVTOCI - non-current	2,000,000	$ 52,200	-	$ 52,200
Rise Concept Enterprises Limited	Equity investment
T-E Pharma Holding, Inc.
T-E Meds Holding, Inc.	n
n	n
n	5,430,746	2,390	11.56	2,390
Shin Kong Technologies Corporation	Equity investment
Orion go Co., Ltd.	n	n	105,148	2,049	8.76	2,049
Hsinshin Asset management Co., Ltd.	Equity investment
Huaku Development Co., Ltd.	n	Financial assets at FVTOCI - current	181,560	22,514	-	22,514
Hsin Lung Chemical Co., Ltd. (HLC)	Equity investment
Wei Chuan Foods Corp.
The Great Taipei Gas Corporation
Equity investment
Taiwan Shin Kong Security Co., Ltd.
Shin Kong Financial Holding Co., Ltd.
Taishin Financial Holding Co., Ltd.
Shin Kong Textile Co., Ltd.
Shinkong Insurance Co. Ltd.
Shinkong Synthetic Fibers Corporation
Shin Ching Investment Co., Ltd.
Mian Hao Industry Co., Ltd.
Hsin Yun Enterprise Co., Ltd.	n
n
n
n
n
n
n
n
n
n
n
n
n	n
n
n
n
n
n
n
n
n
n
n	1,152
48
1,160
976
428,161
112
733,808
4,680,487
3,600,000
2,970,000
990,000	22
1
48
8
7,707
5
62,447
73,016
116,460
160,004
35,462	-
-
-
-
-
-
-
-
-
-	22
1
48
8
7,707
5
62,447
73,016
116,460
160,004
35,462
Shinkong Engineering Co., Ltd.	Equity investment
Shin Kong Financial Holding Co., Ltd.	Related party in substance	n	16,549,473	133,554	0.12	133,554
Pan Asian Plastics Corp.	Equity investment
Taishin Financial Holding Co., Ltd.
United Capital Fund
Shinpont Industry Inc.	n
n
n
Sister companies	n
n
n
n	1,167,752
4,850,000
5,000	21,017
-
104	0.01
7.09
0.01	21,017
-
104

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Holding Company Name	Type and Name of Marketable Securities	Relationship with the securities issuer	Account	Ending Balance
				Number of Shares	Amount	Shareholding Ratio (%)	Fair Value
Shinkong International Leasing Corp.	Fund beneficiary certificate
	Cathay No. 2 Real Estate Investment Trust	None	Financial assets at FVTPL - current	360,000	$ 6,048	-	$ 6,048
	Fubon No. 1 Real Estate Investment Trust	〃	〃	75,000	1,101	-	1,101
	Equity investment
	Chailease Finance Co., Ltd. Preferred Stock A	〃	Financial assets at FVTOCI - non-current	120,000	11,604	-	11,604

-139-

Shinkong Synthetic Fibers Corporation

The amount of purchases from or sales to related parties of the investee company in which the Company has control over reached NT $100 million or 20% of its paid-in capital.

January 1 to March 31, 2024

TABLE 9
Unit: In NT $thousand, unless stated otherwise

Purchase (sales) company	Related Party	Relationship	Transaction details				Transactions with terms different from others		Notes/Accounts Receivable (Payable)
			Purchase (sales)	Carrying Amount	% of Total	Credit period	Unit price	Credit period	Balance	% of Total
Thai Shinkong Industry Corporation Ltd.	Shinkong Synthetic Fibers Corporation	Investee that evaluate the Company using the equity method	Sales	($ 445,894)	( 21.79)	(Note)	(Note)	(Note)	Accounts receivables $ 184,658	22.78
Shinkong Polyester Film Corp., Ltd.	〃	〃	Purchases	389,125	60.71	〃	〃	〃	Trade payables ( 517,214) Other payables ( 3,187)	( 95.73 )
Pan Asian Plastics Industry Corp.	〃	〃	Purchases	153,643	55.90	〃	〃	〃	Trade payables ( 161,282) Other payables ( 26,085)	( 4.56 )
Shinpont Industry Inc.	LYCRA Singapore	Affiliated company of Shinpont Industry	Sales	( 220,585)	( 85.14)	According to the contract signed by both parties	According to the contract signed by both parties	According to the contract signed by both parties	Accounts receivables 128,639	( 89.97 )

Note: Please refer to Table 14.

Shinkong Synthetic Fibers Corporation

The investee company with control power over the Company Receivables from related parties amounting to at least NT $100 million or 20% of the paid-in capital.

March 31, 2024

TABLE 10
Unit: In NT $thousand, unless stated otherwise

Companies of account receivable	Related Party	Relationship	Ending Balance	Turnover rate	Overdue receivables			Amounts Received in Subsequent Period	Allowance for Impairment Loss
					Carrying Amount	Action	taken
Shinpont Industry Inc.	LYCRA Singapore	Affiliated company of Shinpont Industry	Receivables from related parties $ 128,639	5.20	—	—	—	$ 44,426	$ -
Thai Shinkong Industry Corporation Ltd.	Shinkong Synthetic Fibers Corporation	Subsidiary	Receivables from related parties 184,658	8.56	—	—	—	184,658	-
MAXIMA PACIFIC LTD.	Shinkong Synthetic Fibers Corporation	Subsidiary	Other Receivables from related parties Accounts 1,942,016	-	—	—	—	-	-

-141-

SHINKONG SYNTHETIC FIBERS CORPORATION AND SUBSIDIARIES

Marketable securities held by the Group at the end of the period

March 31, 2024

TABLE 11
Unit: In NT $thousand, unless stated otherwise

Holding Company Name	Type and Name of Marketable Securities	Relationship with the securities issuer	Account	Ending Balance
				Number of Shares	Amount	Shareholding Ratio (%)	Fair Value
Shinkong Synthetic Fibers Corporation	Fund beneficiary certificate
Shinkong International Securities Co., Ltd.	Shin Kong Hang Seng TECH Index Funds	Related party in substance	Financial assets at FVTPL - current	500,000	$ 2,000	-	$ 2,000
Taipei Star Bank	Equity investment	None	o	1,825,614	67,770	-	67,770
MAXIMA PACIFIC	Notes investments	o	o	5,500	549,346	-	549,346
LTD.	Equity investment
UBright Optronics Corp.	Taishin Financial Holding Co., Ltd.	The entity's chairman is the second immediate family of the chairman of Shinkong Synthetic Fibers Corporation	o	2,837,524	51,075(USD 1,596)	0.02	51,075(USD 1,596)
	Fund beneficiary certificate
Nomura Ireland Funds	None	o	10,201	24,361(USD 761)	-	24,361(USD 761)
Domestic corporate bonds
Cathay Life Insurance subordinated corporate bond	o	o	50,000	50,059	-	50,059
Foreign corporate bonds
BNP Paribas-overseas bonds (a)	o	o	400,000	12,557(USD 392)	-	12,557(USD 392)
BNP Paribas-overseas bonds (b)	o	o	450,000	14,126(USD 441)	-	14,126(USD 441)
Standard Chartered-overseas bonds (a)	o	o	200,000	6,264(USD 196)	-	6,264(USD 196)
Standard Chartered-overseas bonds (b)	o	o	430,000	13,471(USD 421)	-	13,471(USD 421)
Standard Chartered-overseas bonds (c)	o	o	430,000	13,471(USD 421)	-	13,471(USD 421)
ABN AMRO overseas bonds	o	o	840,000	26,665(USD 833)	-	26,665(USD 833)
TSMC Arizona USD corporate bonds	o	o	1,750,000	51,968(USD 1,624)	-	51,968(USD 1,624)
JPMorgan USD corporate bonds	o	o	1,750,000	56,000(USD 1,750)	-	56,000(USD 1,750)
UBS USD corporate bonds	o	o	1,750,000	55,496(USD 1,734)	-	55,496(USD 1,734)

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Holding Company Name	Type and Name of Marketable Securities	Relationship with the securities issuer	Account	Ending Balance
				Number of Shares	Amount	Shareholding Ratio (%)	Fair Value
UBright Optronics Corp.	Foreign corporate bonds
	Mizuho Financial Group USD corporate bonds (a)	None	Financial assets at FVTPL - current	1,000,000	$ 31,104
(USD 972)	-	$ 31,104
(USD 972)
	Mizuho Financial Group USD corporate bonds (b)	〃	〃	750,000	23,304
(USD 728)	-	23,304
(USD 728)
	Credit Agricole S.A.	〃	〃	1,250,000	41,760
(USD 1,305)	-	41,760
(USD 1,305)
	USD-denominated corporate bonds
	Bank of America corporate bonds	〃	〃	1,250,000	41,360
(USD 1,293)	-	41,360
(USD 1,293)
	Sumitomo Mitsui Financial Group Inc. corporation bonds	〃	〃	1,250,000	33,256
(USD 1,039)	-	33,256
(USD 1,039)
	American Express corporate bonds	〃	〃	1,250,000	40,520
(USD 1,266)	-	40,520
(USD 1,266)


Shinkong International Leasing Corp.	Fund beneficiary certificate
	Cathay No. 2 Real Estate Investment Trust	〃	〃	360,000	6,048	-	6,048
	Fubon No. 1 Real Estate Investment Trust	〃	〃	75,000	1,101	-	1,101
					$ 1,213,082		$ 1,213,082
Shinkong Synthetic Fibers Corporation	Equity investment
	Hsin Ba Corporation (formerly Hsin Da)	〃	Financial assets at FVTOCI - current	12	$ 1	-	$ 1
	The Great Taipei Gas Corporation	Related party in substance	〃	20,213,826	653,917	3.91	653,917
Taipei Star Bank	Equity investment	None	〃	20,595,974	705,256	-	705,256
	Corporate bonds	〃	〃	2,351	2,347,222	-	2,347,222
	Financial debentures	〃	〃	110	969,803	-	969,803
	Government bonds	〃	〃	6,260	1,706,258	-	1,706,258
MAXIMA PACIFIC LTD.	Equity investment
	Taishin Financial Holding Co., Ltd. Preferred Stock E	The entity's chairman is the second immediate family of the chairman of Shinkong Synthetic Fibers Corporation	〃	82,811	4,281
(USD 134)	-	4,281
(USD 134)
	Taishin Financial Holding Co., Ltd. Preferred Stock E 2	〃	〃	49,609	2,270
(USD 71)	-	2,270
(USD 71)
Hsinghong Investment Co., Ltd.	Equity investment
	The Great Taipei Gas Corporation	Related party in substance	〃	117,962	3,816	0.02	3,816
Shin Chiun Industrial Co., Ltd. (SEC)	Equity investment
	Prince Housing & Development Corp.	None	〃	7,359	77	-	77
Hsinshin Asset Management Co., Ltd. (HAM)	Equity investment
	Huaku Development Co., Ltd.	〃	〃	181,560	22,514	-	22,514

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Holding Company Name	Type and Name of Marketable Securities	Relationship with the securities issuer	Account	Ending Balance
				Number of Shares	Amount	Shareholding Ratio (%)	Fair Value
Hsin Lung Chemical Co., Ltd. (HLC)	Equity investment
	Wei Chuan Foods Corp.	None	〃	1,152	$ 22	-	$ 22
	The Great Taipei Gas Corporation	Related party in substance	〃	48	1	-	1
Shinkong Synthetic Fibers Corporation	Limited partnership funds
	Renaissance Capital Limited Partnership	None	Financial assets at FVTPL - non-current	6.41	$ 50,224	6.41	$ 50,224
	Whitesun Capital Limited Partnership	〃	〃	2.50	13,500	2.50	13,500
					$ 63,724		$ 63,724
Shinkong Synthetic Fibers Corporation	Equity investment
	Taiwan Cement Corp.	〃	Financial assets at FVTOCI - non-current	649	$ 21	-	$ 21
	Shin Kong Textile Co., Ltd.	Related party in substance	〃	28,378,958	1,294,081	9.46	1,294,081
	Shin Kong Financial Holding Co., Ltd.	〃	〃	172,550,238	1,392,480	1.11	1,392,480
	Taishin Financial Holding Co., Ltd.	The entity's chairman is the second immediate family of the chairman of Shinkong Synthetic Fibers Corporation	〃	141,305,541	2,543,500	1.13	2,543,500
	Century Development Corporation	None	〃	12,334,854	229,512	3.52	229,512
	Universal Venture Capital Investment Corporation	〃	〃	5,600,000	54,040	4.65	54,040
	O-Bank Co., Ltd.	〃	〃	308	3	-	3
	Evergreen Steel Corp.	〃	〃	890,000	110,805	0.21	110,805
	Shin Kong Mitsukoshi Department Store Co., Ltd.	The chairman of the company is the same as the chairman of Shinkong Synthetic Fibers Corporation	〃	24,401,636	881,143	1.96	881,143
	Overseas Investment & Development Corp.	None	〃	4,000,000	54,880	4.44	54,880
	Li Yu Venture Capital Investment Corp.	〃	〃	174,455	2,770	1.49	2,770
	Shin Kong Chao Feng	Related party in substance	〃	200,000	31,199	2.22	31,199
	PC Home Venture Fund Corp.	None	〃	78,540	1,306	3.03	1,306
	Badworth Investment Limited	〃	〃	45,500	-	5.00	-
	Great Taipei Broadband Co., Ltd.	Related party in substance	〃	2,500,000	7,525	1.67	7,525
	Zacros Taiwan Co., Ltd.	None	〃	10,000,000	84,895	9.44	84,895
	Wave-In Communication Inc.	〃	〃	2,503,142	33,842	13.04	33,842
	Shin Kong iEcofun Corporation	〃	〃	1,327,736	7,701	18.81	7,701
	IIH Birmedical Venture Fund I Co., Ltd.	〃	〃	3,000,000	46,061	4.85	46,061
	Pro Union Motor Co., Ltd.	〃	〃	6,875,951	237,022	21.04	237,022
	Pro Motor Co., Ltd.	〃	〃	4,287,288	156,444	16.13	156,444
	Pro Rental & Leasing Co., Ltd. Lease Co., Ltd.	〃	〃	5,277,251	208,761	18.93	208,761

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Holding Company Name	Type and Name of Marketable Securities	Relationship with the securities issuer	Account	Ending Balance
				Number of Shares	Amount	Shareholding Ratio (%)	Fair Value
Shinkong Synthetic Fibers Corporation	Equity investment
	Green Life Technology Corporation	None	Financial assets at FVTOCI - non-current	10,000,000	$ 1,300	6.50	$ 1,300
	Earthbook Inc.	〃	〃	3,600,000	2,340	8.67	2,340
	Research Innovation Capital Corporation	〃	〃	5,000,000	24,572	14.88	24,572
UBright Optronics Corp.	Equity investment
	Shin Kong Financial Holding Co., Ltd. Preferred Stock B	The entity's chairman is the second immediate family of the chairman of Shinkong Synthetic Fibers Corporation	〃	2,000,000	52,200	-	52,200
	OMVO Technology Inc.	None	〃	5,430,746	2,390	11.56	2,390
Rise Concept Enterprises Limited	Equity investment
	T-E Pharma Holding, Inc.	〃	〃	3,750,000	33,553	1.41	33,553
	T-E Meds Holding,Inc.	〃	〃	1,500,000	48,145	0.70	48,145
Shinkong Engineering Co., Ltd.	Equity investment
	Shin Kong Financial Holding Co., Ltd.	Related party in substance	〃	16,549,473	133,554	0.12	133,554
Shin Chiun Industrial Co., Ltd. (SEC)	Equity investment
	Shin Kong Textile Co., Ltd.	〃	〃	619,000	28,227	0.21	28,227
Hsingshing Investment Co., Ltd.	Equity investment
	Shin Kong Textile Co., Ltd.	〃	〃	1,951,507	88,989	0.65	88,989
Pan Asian Plastics Corp.	Equity investment
	Taishin Financial Holding Co., Ltd.	The entity's chairman is the second immediate family of the chairman of Shinkong Synthetic Fibers Corporation	〃	1,167,752	21,017	0.01	21,017
	United Capital Fund	None	〃	4,850,000	-	7.09	-
Hsin Lung Chemical Co., Ltd. (HLC)	Equity investment
	Taiwan Shin Kong Security Co., Ltd.	Related party in substance	〃	1,160	48	-	48
	Shinkong Insurance Co. Ltd.	〃	〃	733,808	62,447	0.23	62,447
	Shin Kong Financial Holding Co., Ltd.	〃	〃	976	8	-	8
	Taishin Financial Holding Co., Ltd.	The entity's chairman is the second immediate family of the chairman of Shinkong Synthetic Fibers Corporation	〃	428,161	7,707	-	7,707
	Shin Kong Textile Co., Ltd.	Related party in substance	〃	112	5	-	5
	Shin Ching Investment Co., Ltd.	None	〃	3,600,000	116,460	15.52	116,460
	Mian Hao Industry Co., Ltd.	〃	〃	2,970,000	160,004	19.80	160,004
	Hsin Yun Enterprise Co., Ltd.	〃	〃	990,000	35,462	19.80	35,462
Shin Kong Technologies Corporation	Equity investment
	Orion go Co., Ltd.	〃	〃	105,148	2,049	8.76	2,049
Shinkong International Leasing Corp.	Equity investment
	Challease Holding Preferred Shares A	〃	〃	120,000	11,604	-	11,604
Shinkong International Securities Co., Ltd.	Equity investment
	Taiwan Futures Exchange Co., Ltd.	〃	〃	982,168	65,768	0.18	65,768
	Taiwan Stock Exchange Corporation	〃	〃	92,191	7,777	0.01	7,777
					$ 8,283,617		$ 8,283,617

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Holding Company Name	Type and Name of Marketable Securities	Relationship with the securities issuer	Account	Ending Balance
				Number of Shares	Amount	Shareholding Ratio (%)	Fair Value
Taipei Star Bank	Corporate bonds	None	Financial assets at amortized cost - non-current	4,714	$ 5,993,195	-	$ 5,993,195
	Financial debentures	〃	〃	125	2,441,433	-	2,441,433
	Government bonds	〃	〃	40,000	4,863,730	-	4,863,730
	Notes investments	〃	〃	5,010	5,010,000	-	5,010,000
					$ 18,308,358		$ 18,308,358

SHINKONG SYNTHETIC FIBERS CORPORATION AND SUBSIDIARIES

Total purchases from or sales to related parties amounting to at least NT $100 million or 20% of the paid-in capital.

January 1 to March 31, 2024

TABLE 12
Unit: In NT $thousand, unless stated otherwise

Purchase (sales) company	Related Party	Relationship	Transaction details				Transactions with terms different from others		Notes/Accounts Receivable (Payable)
			Purchase (sales)	Carrying Amount	% of Total	Credit period	Unit price	Credit period	Balance	% of Total
Shinpont Industry Inc.	LYCRA Singapore	Affiliated company of Shinpont Industry	Sales	($ 220,585)	( 85.14)	According to the contract signed by both parties	According to the contract signed by both parties	According to the contract signed by both parties	$ 128,639	85.31
Shinkong Synthetic Fibers Corporation	Topbottle Resources Technology Corporation	Associate	Purchases	133,832	2.69	“	“	“	Trade payables ( 26,474)	( 1.51)

-147-

SHINKONG SYNTHETIC FIBERS CORPORATION AND SUBSIDIARIES
Receivables from related parties amounting to at least NT $100 million or 20% of the paid-in capital.
March 31, 2024

TABLE 13
Unit: In NT $thousand, unless stated otherwise

Companies of account receivable	Related Party	Relationship	Ending balance	Turnover rate	Overdue receivables		Amount Received in Subsequent Period	Allowance for Impairment Loss
					Carrying Amount	Action taken
Shinpont Industry Inc.	LYCRA Singapore	Affiliated company of Shinpont Industry	$ 128,639	5.20	$ -	—	$ 44,426	$ -

-148-

SHINKONG SYNTHETIC FIBERS CORPORATION AND SUBSIDIARIES

Business relationships and significant intercompany transactions

January 1 to March 31, 2024

TABLE 14

Unit: In NT $thousand, unless stated otherwise

No. (Note 1)	Name of transaction party	Related Party	Relationship (Note 2)	Transaction details
				Financial Statement Account	Carrying Amount	Terms of Payments	% of Total Sales or Assets (Note 3)
0	Shinkong Synthetic Fibers	MAXIMA	2	Other payables	$ 1,942,016	General	1
0	Shinkong Synthetic Fibers	UBright Optronics	1	Dividends receivable	136,808	〃	-
0	Shinkong Synthetic Fibers	Shinpont Industry Inc.	1	Other revenue	4,916	〃	-
0	Shinkong Synthetic Fibers	Shinpont Industry Inc.	1	Rental revenue	6,384	〃	-
0	Shinkong Synthetic Fibers	Shinpont Industry Inc.	1	Sales revenue	47,157	Refer to Note 4	-
0	Shinkong Synthetic Fibers	Shinpont Industry Inc.	1	Accounts receivables	8,148	〃	-
0	Shinkong Synthetic Fibers	Shinpont Industry Inc.	2	Reduction of manufacturing expense	37,860	Refer to Note 5	-
0	Shinkong Synthetic Fibers	Shinpont Industry Inc.	1	Other receivables	14,438	General	-
0	Shinkong Synthetic Fibers	Pan Asian Plastics	1	Sales revenue	153,643	Refer to Note 4	2
0	Shinkong Synthetic Fibers	Pan Asian Plastics	1	Accounts receivables	161,282	〃	-
0	Shinkong Synthetic Fibers	Pan Asian Plastics	2	Reduction of manufacturing expense	35,651	Refer to Note 5	-
0	Shinkong Synthetic Fibers	Pan Asian Plastics	1	Other receivables	26,085	General	-
0	Shinkong Synthetic Fibers	Pan Asian Plastics	1	Rental revenue	3,701	〃	-
0	Shinkong Synthetic Fibers	Pan Asian Plastics	1	Sales revenue	2,770	Refer to Note 4	-
0	Shinkong Synthetic Fibers	Pan Asian Plastics	1	Accounts receivables	1,181	〃	-
0	Shinkong Synthetic Fibers		2	Trade payables	184,658	〃	-
		Thai Shinkong
0	Shinkong Synthetic Fibers		2	Cost of goods sold	445,894	〃	4
		Thai Shinkong
0	Shinkong Synthetic Fibers	Shin Kong International Leasing Corp.	1	Right-of-use assets	1,300	General	-
0	Shinkong Synthetic Fibers	Shin Kong International Leasing Corp.	2	Lease liabilities	1,311	〃	-
0	Shinkong Synthetic Fibers	Shinkong International Securities	2	Other payables	1,114	〃	-
0	Shinkong Synthetic Fibers	Shinkong Polyester Film	1	Other revenue	2,089	〃	-
0	Shinkong Synthetic Fibers	Shinkong Polyester Film	1	Rental revenue	7,053	〃	-
0	Shinkong Synthetic Fibers	Shinkong Polyester Film	1	Sales revenue	389,125	Refer to Note 4	4
0	Shinkong Synthetic Fibers	Shinkong Polyester Film	1	Accounts receivables	517,214	〃	-
0	Shinkong Synthetic Fibers	Shinkong Polyester Film	1	Other receivables	3,187	General	-
0	Shinkong Synthetic Fibers	Shinkong Engineering Co., Ltd.	2	Cost of goods sold	12,000	〃	-
0	Shinkong Synthetic Fibers	Shinkong Applied Materials	1	Sales revenue	11,207	Refer to Note 4	-
0	Shinkong Synthetic Fibers	Shinkong Applied Materials	1	Accounts receivables	1,910	〃	-
0	Shinkong Synthetic Fibers	Taipei Star Bank	1	Bank deposit	164,846	General	-
0	Shinkong Synthetic Fibers	Taipei Star Bank	1	Interest income	1,308	〃	-

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(Continued from the previous page)

No. (Note 1)	Name of transaction party	Related Party	Relationship (Note 2)	Transaction details
				Financial Statement Account	Carrying Amount	Terms of Payments	% of Total Sales or Assets (Note 3)
1	Shinpont Industry Inc.	Shinkong Synthetic Fibers	1	Lease liabilities	$ 62,375	General	-
1	Shinpont Industry Inc.	Shinkong Synthetic Fibers	1	Right-of-use assets	60,540	〃	-
2	Shinkong Polyester Film	UBright Optronics	3	Accounts receivables	2,954	Refer to Note 4	-
2	Shinkong Polyester Film	UBright Optronics	3	Sales revenue	13,357	〃	-
2	Shinkong Polyester Film	Shinkong Synthetic Fibers	1	Lease liabilities	64,703	General	-
2	Shinkong Polyester Film	Shinkong Synthetic Fibers	1	Right-of-use assets	63,433	〃	-
2	Shinkong Polyester Film	Taipei Star Bank	3	Bank deposit	2,238	〃	-
3	UBright Optronics	Suzhou UBright Optronics	3	Prepaid expenses	2,566	〃	-
3	UBright Optronics	Suzhou UBright Optronics	3	Other expenses	2,604	〃	-
3	UBright Optronics	Rise Concept Enterprises	3	Other receivables	96,000	〃	-
3	UBright Optronics	Taipei Star Bank	3	Bank deposit	171,223	〃	-
3	UBright Optronics	Taipei Star Bank	3	Interest income	2,380	〃	-
3	UBright Optronics	Taipei Star Bank	3	Financial assets at FVTPL - current	78,400	〃	-
4	Taipei Star Bank	Far Trust Finance	3	Net fee income	3,706	〃	-
4	Taipei Star Bank	Far Trust Finance	3	Advance payments	21,754	〃	-
4	Taipei Star Bank	Shinkong International Securities	3	Net fee income	17,836	〃	-
4	Taipei Star Bank	Shinkong International Securities	3	Other receivables	4,411	〃	-
4	Taipei Star Bank	Shin Kong International Leasing Corp.	3	Lease liabilities	2,102	〃	-
4	Taipei Star Bank	Shin Kong International Leasing Corp.	3	Right-of-use assets	2,064	〃	-
5	Hsinghong Investment Co., Ltd.	Taipei Star Bank	3	Bank deposit	71,219	〃	-
5	Hsinghong Investment Co., Ltd.	Taipei Star Bank	3	Financial assets at amortized cost	28,000	〃	-
6	Shinkong International Securities	Shin Kong International Leasing Corp.	3	Lease liabilities	3,718	〃	-
6	Shinkong International Securities	Shin Kong International Leasing Corp.	3	Right-of-use assets	3,666	〃	-
6	Shinkong International Securities	Shinkong Synthetic Fibers	2	Other revenue	3,343	〃	-
6	Shinkong International Securities	Taipei Star Bank	3	Other revenue	8,095	〃	-
6	Shinkong International Securities	Taipei Star Bank	3	Other receivables	2,373	〃	-
6	Shinkong International Securities	Taipei Star Bank	3	Financial assets at amortized cost	52,000	〃	-
6	Shinkong International Securities	Taipei Star Bank	3	Bank deposit	95,520	〃	-
6	Shinkong International Securities	Taipei Star Bank	3	Other financial assets	300,000	〃	-
6	Shinkong International Securities	Taipei Star Bank	3	Operating deposits	5,000	〃	-
7	Hsinshin Asset Management	Taipei Star Bank	3	Bank deposit	2,308	〃	-
7	Hsinshin Asset Management	Taipei Star Bank	3	Financial assets at amortized cost	41,000	〃	-

(Continued on next page)

(Continued from the previous page)

No. (Note 1)	Name of transaction party	Related Party	Relationship (Note 2)	Transaction details
				Financial Statement Account	Carrying Amount	Terms of Payments	% of Total Sales or Assets (Note 3)
8	Shin Chiun Industrial Co., Ltd.	Pan Asian Plastics	3	Other receivables	$ 50,000	General	-
8	Shin Chiun Industrial Co., Ltd.	UBright Optronics	3	Dividends receivable	4,753	»	-
8	Shin Chiun Industrial Co., Ltd.	Taipei Star Bank	3	Bank deposit	11,330	»	-
8	Shin Chiun Industrial Co., Ltd.	Taipei Star Bank	3	Financial assets at amortized cost	405,000	»	-
8	Shin Chiun Industrial Co., Ltd.	Taipei Star Bank	3	Interest income	1,306	»	-
9	Pan Asian Plastics	Pan Asian Plastics	3	Other receivables	3,369	»	-
9	Pan Asian Plastics	Pan Asian Plastics	3	Rental revenue	4,541	»	-
9	Pan Asian Plastics	Shin Kong International Leasing Corp.	3	Lease liabilities	3,798	»	-
9	Pan Asian Plastics	Shin Kong International Leasing Corp.	3	Right-of-use assets	3,754	»	-
10	Shin Kong International Leasing Corp.	Co-creation Ingenuity Renewable	3	Accounts receivables	88,000	»	-
10	Shin Kong International Leasing Corp.	Shinkong Energy	3	Accounts receivables	404,000	»	-
10	Shin Kong International Leasing Corp.	Shinkong Power Technology	3	Accounts receivables	98,000	»	-
10	Shin Kong International Leasing Corp.	Taipei Star Bank	3	Bank deposit	22,547	»	-
10	Shin Kong International Leasing Corp.	Far Trust Finance	3	Other operating revenues	6,693	»	-
10	Shin Kong International Leasing Corp.	Far Trust Finance	3	Guarantee deposits received	13,500	»	-
10	Shin Kong International Leasing Corp.	Far Trust Finance	3	Accounts receivables	292,850	»	-
10	Shin Kong International Leasing Corp.	Far Trust Finance	3	Long-term accounts receivable	585,700	»	-
10	Shin Kong International Leasing Corp.	Far Trust Finance	3	Other receivables	2,315	»	-
11	MAXIMA	Taipei Star Bank	3	Bank deposit	2,803	»	-
12	Far Trust Finance	Taipei Star Bank	3	Bank deposit	6,041	»	-
12	Far Trust Finance	Taipei Star Bank	3	Other financial assets	1,784	»	-
12	Far Trust Finance	Taipei Star Bank	3	Net fee income	13,407	»	-
12	Far Trust Finance	Taipei Star Bank	3	Financial assets at amortized cost	38,300	»	-
12	Far Trust Finance	Far Trust Leasing	3	Other receivables	20,000	»	-
13	Far Trust Leasing	Far Trust Finance	3	Other receivables	1,537	»	-
13	Far Trust Leasing	Far Trust Finance	3	Other revenue	2,971	»	-
14	Qi Jian	Shinkong Synthetic Fibers	2	Sales revenue	3,112	»	-
14	Qi Jian	Taipei Star Bank	3	Bank deposit	1,174	»	-
15	Shinkong Technologies Corporation	Shinkong Synthetic Fibers	2	Sales revenue	8,730	»	-
15	Shinkong Technologies Corporation	Shinkong Synthetic Fibers	2	Accounts receivables	3,056	»	-
15	Shinkong Technologies Corporation	Taipei Star Bank	3	Bank deposit	1,191	»	-
16	Otobuy Co., Ltd.	Taipei Star Bank	3	Bank deposit	5,380	»	-
17	Pan Asian Plastics	Pan Asian Plastics	3	Sales revenue	21,999	Refer to Note 4	-
17	Pan Asian Plastics	Pan Asian Plastics	3	Accounts receivables	7,708	»	-
17	Pan Asian Plastics	Taipei Star Bank	3	Bank deposit	3,277	General	-

(Continued on next page)

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No. (Note 1)	Name of transaction party	Related Party	Relationship (Note 2)	Transaction details
				Financial Statement Account	Carrying Amount	Terms of Payments	% of Total Sales or Assets (Note 3)
18	Shin Kong Fintech	Taipei Star Bank	3	Professional service revenue	$ 1,200	General	-
18	Shin Kong Fintech	Taipei Star Bank	3	Bank deposit	49,383	〃	-
19	Intelligent Medical Big Data	Taipei Star Bank	3	Bank deposit	1,826	〃	-
20	Shinkong Engineering Co., Ltd.	Taipei Star Bank	3	Bank deposit	1,660	〃	-
20	Shinkong Engineering Co., Ltd.	UBright Optronics	3	Dividends receivable	3,109	〃	-
21	TacBright Optronics	UBright Optronics	3	Accounts receivables	1,248	Refer to Note 4	-
21	TacBright Optronics	UBright Optronics	3	Sales revenue	2,161	〃	-
22	Shinkong Innovations	Taipei Star Bank	3	Bank deposit	2,031	General	-
23	SSFC	Dayspring	3	Temporary receipts	1,769,026	〃	-

Note 1: The numbers filled in for the transaction company in respect of inter-company transactions are as follows:
1. Parent company: 0.
2. Subsidiaries are numbered from 1.

Note 2: Related party transactions are divided into 3 categories as follows:
1. The Company to subsidiaries.
2. Subsidiaries to the Company.
3. Subsidiaries to subsidiaries.

Note 3: Calculation of the ratio of transaction amount to consolidated total revenue or total assets. This calculation is performed differently depending on whether it pertains to balance sheet items, where it's based on year-end balances relative to total assets, or income statement items, where it's based on year-end cumulative amounts relative to total revenue.

Note 4: The terms of purchase and sale of goods between Shinkong Synthetic Fibers and related parties were as follows:

Company Name	Items	Sales terms	Purchase transaction terms	Terms of Collection	Terms of Payments
Thai Shinkong	Finished goods	Market value	Market value	open account 30 days	Month-end 90 days
Shinkong Polyester Film	Finished goods	Market value		Month-end 90 - 120 days
	Materials	Market value		Month-end 90 days
Shinpont Industry Inc.	Finished goods	Based on the disclosed selling price of a professional chemical fiber authoritative magazine		45 days after monthly closing
	Materials	Cost value		Month-end 30 days
Shinkong Applied Materials	Finished goods	Market value		open account 90 days
Pan Asian Plastics	Finished goods	Market value		Month-end 90 days
	Materials	Market value		Month-end 90 days
Pan Asian Plastics	Finished goods	Market value		Month-end 90 days
	Materials	Market value		Month-end 90 days

The terms and conditions of UBright Optronics's purchases and sales with related parties are as follows:

Company Name	Items	Sales terms	Purchase transaction terms	Terms of Collection	Terms of Payments
Shinkong Polyester Film	Materials	Market value	Market value	60 days after shipment	Next month 20th after delivery
TacBright Optronics	Finished goods		Market value		Month-end 90 days

The sales terms of TacBright Optronics to related parties were as follows:

Company Name	Items	Sales terms	Purchase transaction terms	Terms of Collection	Terms of Payments
UBright Optronics	Finished goods	Market value		Month-end 90 days

The terms and conditions for the sales and purchases of goods to related parties were as follows:

Company Name	Items	Sales terms	Purchase transaction terms	Terms of Collection	Terms of Payments
Shinkong Synthetic Fibers	Finished goods		Market value		Month-end 90 - 120 days
	Materials		Market value		Month-end 90 days
UBright Optronics	Finished goods	Market value	Market value	Next month 20th after delivery	60 days after shipment

The terms and conditions of Pan Asian Plastics' purchases and sales with related parties are as follows:

Company Name	Items	Sales terms	Purchase transaction terms	Terms of Collection	Terms of Payments
Pan Asian Plastics	Finished goods	Market value	Market value	Month-end 90 days	Month-end 90 days
	Materials	Market value	Market value	Month-end 90 days	Month-end 90 days
Shinkong Synthetic Fibers	Finished goods		Market value		Month-end 90 days
	Materials		Market value		Month-end 90 days

The terms of sales and purchases transactions with related parties were as follows:

Company Name	Items	Sales terms	Purchase transaction terms	Terms of Collection	Terms of Payments
Shinkong Synthetic Fibers	Finished goods	Market value	Market value	Month-end 90 days	open account 30 days

The terms and conditions of Shinpont Industry Inc.'s purchases and sales with related parties are as follows:

Company Name	Items	Sales terms	Purchase transaction terms	Terms of Collection	Terms of Payments
Shinkong Synthetic Fibers	Finished goods		Market value		45 days after monthly closing
	Materials		Market value		Month-end 30 days

The terms and conditions of Shinkong Applied Materials' purchases and sales with related parties are as follows:

Company Name	Items	Sales terms	Purchase transaction terms	Terms of Collection	Terms of Payments
Shinkong Synthetic Fibers	Finished goods		Market value		open account 90 days

Pan Asian Plastics sales terms with related parties were as follows:

Company Name	Items	Sales terms	Purchase transaction terms	Terms of Collection	Terms of Payments
Shinkong Synthetic Fibers	Finished goods		Market value		Month-end 90 days
	Materials		Market value		Month-end 90 days
Pan Asian Plastics	Finished goods	Market value	Market value	Month-end 90 days	Month-end 90 days
	Materials	Market value	Market value	Month-end 90 days	Month-end 90 days

Note 5: The management service fee allocated to Shinkong Synthetic Fibers Corporation.

SHINKONG SYNTHETIC FIBERS CORPORATION AND SUBSIDIARIES

Information on investees and their locations

January 1 to March 31, 2024

Table 15
Unit: In NT $thousand, unless stated otherwise

Name of investor	Investee companies	Region Code	Location	Main Businesses and Products	Original investment amount		Ending balance			Investee Company Current profit and loss	Recognized during the period Investment profit and loss
					Ending balance	End of last year	Number of Shares	Percentage %	Amount
Shinkong Synthetic Fibers Corporation	Tai Jin Investment Co., Ltd.	0	Taipei City	Investment	$ 3,505	$ 3,505	1,111,315	48.57	$ 7,161	($ 20)	($ 10)
	Topbottle Resources Technology Corporation	0	Tainan City	Manufacturing of synthetic materials and plastic product	15,000	15,000	1,488,000	20.00	17,263	( 1,601)	( 320)
	Ecofun Lab Corporation	0	Taoyuan City	Crop cultivation, wholesale of vegetables and fruits and retail sale of agricultural products	18,400	18,400	1,840,000	33.33	8,897	-	-
	Shinsol Advanced Chemical Corporation		Tainan City	Precision chemical material manufacturing	373,588	373,588	37,358,859	43.63	331,480	( 8,058)	( 3,516)
Pan Asian Plastics Corp.	Tai Shin Leasing & Financial Co., Ltd.	0	Taipei City	Leasing and distribution of various businesses	520,000	520,000	22,200,000	30.00	1,687,915	( 25,835)	( 7,750)
Hsingshing Investment Co., Ltd.	Da Chun Universe Investment Co., Ltd.	0	Taichung City	Investment	9,000	9,000	(Note)	45.00	4,802	( 149)	( 67)

Note: This is a limited company, the proportion of ownership is calculated based on the amount of capital contribution.

SHINKONG SYNTHETIC FIBERS CORPORATION AND SUBSIDIARIES
INFORMATION ON INVESTMENTS IN MAINLAND CHINA
January 1 to March 31, 2024
Unit: In NT $thousand, unless stated otherwise

Investee Company	Main Businesses and Products	Paid-in Capital	Method of Investment	Accumulated remittance from Taiwan at the beginning of the period	Investment Flows		Cumulative amount of outward remittance from Taiwan at the end of the period	Net Income (Loss) of the Investee	% Ownership of Direct or Indirect Investment	Investment Gain (Loss) (Note 5)	Carrying value of investments at the end of the period	Accumulated Repatriation of Investment Income as the end of the period	Remark
					Remitted	Release
Hangzhou Huachun Chemical Fiber Co., Ltd.	Chemical fiber weaving, printing and dyeing	Note1	Through subsidiary BVI SSFC INVESTMENT LTD. Investment in Mainland China	$ 542,871 (USD 16.88 million)	$	$	$ 542,871 (USD 16.88 million)	$	-	$	$	$	-
Shinkong Applied Materials (Jiangsu) Company Limited	Sale of synthetic materials, fibers and manufacturing of plastic product	USD 15 million	Note 2				-	17,850	100.00	17,850	447,255	-
Suzhou Ulbright Optronics Corp.	Brightness Enhancement Film Cutting	RMB 1 million	Investments in Mainland China companies through Rise Concept Enterprises Limited	4,471 (RMB 1 million)			4,471 (RMB 1 million)	(535)	100.00	(535)	1,392	-
Accumulated outflow of investment from Taiwan to Mainland China at the end of the period	Investment Amounts Authorized by the Investment Commission, MOEA	Upper Limit on Investment in Mainland China in accordance with Ministry of Economic Affairs Investment Commission, MOEA
---	---	---
$547,342 (USD 16.88 million and RMB 1 million) (Note 3)	$1,170,668 (USD 39.53 million and RMB 1 million) (Note 4)	$21,394,707

Note 1: Hangzhou Huachun Chemical Fiber Co., Ltd. was liquidated in February 2021.
Note 2: SSFC INVESTMENT LTD.(BVI) was established with its own funds.
Note 3: Includes equipment SSFC premium of USD 4.28 million, which is not included in the approved limit and cash outflow of USD 240,000 to Dayspring.
Note 4: Including the subsidiary SSFC INVESTMENT LTD. in BVI applied for an approved investment amount of USD 25 million with its own funds and loans to sister companies.
Note 5: Financial statements not audited by the parent company's CPA.

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SHINKONG SYNTHETIC FIBERS CORPORATION AND SUBSIDIARIES

SIGNIFICANT TRANSACTIONS WITH INVESTEE COMPANIES IN MAINLAND CHINA, EITHER DIRECTLY OR INDIRECTLY THROUGH A THIRD PARTY, AND THEIR PRICES, TERMS OF PAYMENTS, AND UNREALIZED GAINS OR LOSSES

January 1 to March 31, 2024

Table 17
Unit: In NT $thousand, unless stated otherwise

Investee Company	Transaction type	Purchase and sales		Price	Transaction Details		Notes/Accounts Receivable (Payable)		Unrealized profit or loss
		Carrying Amount	Percentage (%)		Terms of Payments	Comparison with Normal Transactions	Balance	Percentage (%)
Shinkong Synthetic Fibers
Shinkong Applied Materials (Jiangsu) Company Limited	Sales	($ 11,207)	( 0.19 )	Note1	Note1	Note1	Accounts receivables $ 1,910	0.07	$ 158
UBright Optronics Corp.
Suzhou UBright Optronics Corp.	Service expense	2,604	-	Note 2	Note 2	Note 2	Other payables -	-	-

Note 1: Please refer to Table 14.
Note 2: Professional fees are paid in accordance with the contract and are paid quarterly in advance, and are offset monthly in accordance with the actual Trade payables.

Endorser/guarantor provided with investee companies in mainland China directly or indirectly through a third party: None.
Financing providing to others with investee companies in mainland China directly or indirectly through a third party: None.
Other transaction that have a material impact on profit or loss or financial condition: None.

-157-

SHINKONG SYNTHETIC FIBERS CORPORATION AND SUBSIDIARIES
INFORMATION OF MAJOR SHAREHOLDERS
March 31, 2024

Table 18

Name of Major Shareholder	Shares
	Number of Shares	Percentage of Ownership (%)
Shinkong Co., Ltd.	84,414,691	5.21%

-158-

AI assistant

SSFC — Interim / Quarterly Report 2024

51787_rns_2024-12-24_b12b1e9f-fb48-40b3-9923-1f58c4c27970.pdf

$\S$ TABLE OF CONTENTS

SHINKONG SYNTHETIC FIBERS CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

SHINKONG SYNTHETIC FIBERS CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

IFRS18 “Presentation and Disclosure of Financial Statements”

4. SUMMARY OF MATERIAL ACCOUNTING POLICIES INFORMATION

(1) Statement of compliance

(2) Basis of preparation

5. MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

6. CASH AND CASH EQUIVALENTS

7. DUE FROM THE CENTRAL BANK AND CALL LOANS TO OTHER BANKS

8. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

11. BILLS AND BONDS PURCHASED UNDER RESALE AGREEMENTS / NOTES AND BONDS ISSUED UNDER REPURCHASE AGREEMENT

12. NOTES RECEIVABLE, ACCOUNTS RECEIVABLES AND OTHER RECEIVABLES

(1) Receivable

March 31, 2024

December 31, 2023

March 31, 2023

March 31, 2024

December 31, 2023

March 31, 2023

March 31, 2024

1. General case

2. Redemption case

15. SUBSIDIARIES

Remarks:

UBright Optronics and its subsidiaries

16. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

17. PROPERTY, PLANT AND EQUIPMENT

(1) Self-use

18. LEASE ARRANGEMENTS

19. INVESTMENT PROPERTY

20. GOODWILL

21. OTHER INTANGIBLE ASSETS

22. OPERATING DEPOSITS AND SETTLEMENT FUNDS

23. OTHER ASSETS

24. BORROWINGS

25. BANK NOTES PAYABLE

26. NOTES PAYABLE AND TRADE PAYABLES

27. DEPOSITS

31. EQUITY

33. CONTINUING OPERATIONS INCOME TAX

34. EARNINGS PER SHARE

35. SHARE-BASED PAYMENTS AGREEMENT

36. BUSINESS COMBINATION

(1) Subsidiaries acquired Subsidiary

(2) Consideration transferred

37. EQUITY TRANSACTIONS WITH NON-CONTROLLING INTERESTS

38. CAPITAL RISK MANAGEMENT

39. FINANCIAL INSTRUMENTS

i Foreign currency risk

Sensitivity analysis

ii Interest rate risk

Sensitivity analysis

Sensitivity analysis

40. RELATED PARTY TRANSACTIONS

(2) Operating revenue

(3) Purchases

(8) Other operating expenses

(9) Lease agreement

(10) Lease agreements

Operating lease

(11) Loans from related parties

41. PLEDGED ASSETS

42. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACTUAL COMMITMENTS

43. OTHER MATTER

44. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

45. DISCLOSURES ACCORDING TO REGULATIONS GOVERNING THE PREPARATION OF FINANCIAL REPORTS BY PUBLIC BANKS

(1) Financial instruments

b. Interest rate risk

Measurement of ECLs

Forward-looking information

B. Investments in debt instruments

Quantitative indicators

Measurement of ECLs

A. Collateral

SSFC Interim / Quarterly Report 2024