SUNONWEALTH ELECTRIC MACHINE INDUSTRY CO., LTD. AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED MARCH 31, 2023 AND 2022 AND INDEPENDENT AUDITORS' REVIEW REPORT

	Item	Page
1.	Cover page	1
2.	Contents	2
3.	Independent auditors' review report	3
4.	Consolidated balance sheets	4
5.	Consolidated statements of comprehensive income	5
6.	Consolidated statements of changes in equity	6
7.	Consolidated statements of cash flows	7
8.	Notes to Consolidated financial statements
	(1) General information	8
	(2) The authorization of consolidated financial statements	8
	(3) Application of new and amended standards and interpretations	8-10
	(4) Summary of significant accounting policies	10-17
	(5) Critical accounting judgments, estimates and key sources of assumption uncertainty	17
	(6) Contents of significant accounts	17-37
	(7) Related party transactions	37-40
	(8) Pledged assets	40
	(9) Significant contingent liabilities and unrecognized contract commitments	40-41
	(10) Significant disaster loss	41
	(11) Significant subsequent events	41
	(12) Others	41-52
	(13) Supplementary disclosures	53
	A. Information on significant transactions	54-62
	B. Information on investees	63-64
	C. Information on investments in Mainland China	65-66
	D. Information on Major Shareholders	67
	(14) Segment information	68-69

SUNONWEALTH ELECTRIC MACHINE INDUSTRY CO., LTD. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Reviewed Only, Not Audited in Accordance with the Auditing Standards as of March 31, 2023 and 2022)

(In Thousands of New Taiwan Dollars)

		March 31, 2023		December 31, 2022		March 31, 2022
Assets	Note	Amount	%	Amount	%	Amount	%
CURRENT ASSETS
Cash and cash equivalents	6(1)	\$2,369,729	20.7	\$2,457,337	20.2	\$1,678,831	15.0
Financial assets at fair value through profit or	6(2)	129,638	1.1	211,827	1.7	193,836	1.7
loss - current
Notes receivable, net	6(3)	32,014	0.3	30,095	0.2	21,281	0.2
Accounts receivable, net	6(4)	2,848,759	25.0	3,384,057	27.8	3,191,414	28.6
Other receivables		101,119	0.9	140,678	1.2	85,891	0.8
Current tax assets		36	-	1,668	-	4,770	-
Inventories	6(5)	2,427,740	21.3	2,651,498	21.7	2,623,202	23.4
Prepayments		159,408	1.4	148,430	1.2	168,738	1.5
Other financial assets - current	6(6)	221,561	1.9	-	-	-	-
Total current assets		8,290,004	72.6	9,025,590	74.0	7,967,963	71.2
NONCURRENT ASSETS
Financial assets at fair value through other	6(7)	19,667	0.2	-	-	-	-
comprehensive income or loss - noncurrent
Investments accounted for using equity method	6(8)	5,966	0.1	5,800	-	7,314	0.1
Property, plant and equipment	6(9)	2,220,302	19.5	2,273,414	18.7	2,158,730	19.2
Right-of-use assets	6(10)	607,938	5.3	593,877	4.9	750,563	6.7
Investment properties, net	6(11)	85,013	0.7	85,106	0.7	85,393	0.8
Intangible assets	6(12)	26,596	0.2	27,053	0.2	26,704	0.2
Deferred income tax assets		104,110	0.9	112,591	0.9	62,804	0.6
Refundable deposits		21,282	0.2	19,773	0.2	33,537	0.3
Other noncurrent assets - others		32,316	0.3	48,765	0.4	99,819	0.9
Total noncurrent assets		3,123,190	27.4	3,166,379	26.0	3,224,864	28.8
TOTAL ASSESTS		\$11,413,194	100.0	\$12,191,969	100.0	\$11,192,827	100.0
Liabilities and Equity
CURRENT LIABLITIES
Short-term loans	6(13)	\$1,377,850	12.1	\$1,287,516	10.6	\$1,712,479	15.3
Contract liabilities - current	6(22)	142,783	1.2	176,164	1.4	127,464	1.1
Notes payables		102,754	0.9	136,355	1.1	11	-
Accounts payable		2,368,758	20.7	3,179,288	26.1	2,628,924	23.5
Other payables	6(14)	660,666	5.8	1,078,747	8.9	773,395	6.9
Current tax liabilities		264,061	2.3	208,679	1.7	178,670	1.6
Provisions - current	6(15)	52,273	0.5	54,643	0.4	45,030	0.4
Lease liabilities - current	6(10)	85,370	0.7	80,951	0.7	99,764	0.9
Advance receipts		14	-	-	-	262	-
Long-term liabilities-current portion	6(16)	120,255	1.1	120,372	1.0	83,635	0.7
Total current liabilities		5,174,784	45.3	6,322,715	51.9	5,649,634	50.4
NONCURRENT LIABILITIES
Long-term loans	6(16)	328,305	2.9	286,701	2.3	535,505	4.8
Deferred income tax liabilities		227,488	2.0	190,955	1.6	79,018	0.7
Lease liabilities - noncurrent	6(10)	149,981	1.3	150,425	1.2	277,653	2.5
Net defined benefit liabilities - noncurrent	6(17)	33,976	0.3	35,667	0.3	53,512	0.5
Guarantee deposits		848	-	3,029	-	698	-
Total noncurrent liabilities		740,598	6.5	666,777	5.4	946,386	8.5
Total Liabilities		\$5,915,382	51.8	\$6,989,492	57.3	\$6,596,020	58.9

			March 31, 2023			December 31, 2022
Liabilities and Equity	Note	Amount	%	Amount	%	Amount	%
EQUITY ATTRIBUTABLE TO OWNERS OF
THE PARENT
Share capital	6(18)
Ordinary shares		\$2,509,297	22.0	\$2,509,297	20.6	\$2,509,297	22.5
Capital surplus	6(19)	366,903	3.2	366,903	3.0	366,903	3.3
Retained earnings	6(20)
Legal reserve		885,799	7.8	885,799	7.3	842,984	7.5
Special reserve		295,358	2.6	295,358	2.4	242,095	2.2
Unappropriated earnings		1,680,866	14.7	1,402,877	11.5	853,960	7.6
Other equity	6(21)	(240,411)	(2.1)	(257,757)	(2.1)	(218,432)	(2.0)
Total equity attributable to owners of the parent		5,497,812	48.2	5,202,477	42.7	4,596,807	41.1
NON-CONTROLLING INTERESTS		-	-	-	-	-	-
Total equity		5,497,812	48.2	5,202,477	42.7	4,596,807	41.1
TOTAL LIABILITIES AND EQUITY		\$11,413,194	100.0	\$12,191,969	100.0	\$11,192,827	100.0

SUNONWEALTH ELECTRIC MACHINE INDUSTRY CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Reviewed, Not Audited)

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

		Three Months Ended March 31
		2023		2022
	Note	Amount	%	Amount	%
OPERATING REVENUES	6(22)	\$3,075,327	100.0	\$3,123,248	100.0
OPERATING COSTS	6(5)	(2,261,790)	(73.5)	(2,542,449)	(81.4)
GROSS PROFIT		813,537	26.5	580,799	18.6
OPERATING EXPENSES
Sales and marketing		(134,856)	(4.4)	(135,777)	(4.4)
General and administrative		(146,756)	(4.8)	(130,926)	(4.2)
Research and development		(186,199)	(6.1)	(187,212)	(6.0)
Expected credit loss (gain)	6(4)	2,169	0.1	2,439	0.1
Total operating expenses		(465,642)	(15.2)	(451,476)	(14.5)
INCOME FROM OPERATIONS		347,895	11.3	129,323	4.1
NON-OPERATING INCOME AND EXPENSES
Interest income	6(24)	9,535	0.3	2,177	0.1
Other income	6(25)	34,429	1.1	24,079	0.8
Other gains and losses	6(26)	(16,040)	(0.5)	47,021	1.5
Finance costs	6(27)	(11,864)	(0.4)	(8,300)	(0.3)
Share of loss of associates and joint ventures accounted for using equity method	6(8)	138	-	(40)	-
Total non-operating income and expenses		16,198	0.5	64,937	2.1
INCOME BEFORE INCOME TAX		364,093	11.8	194,260	6.2
INCOME TAX EXPENSE	6(28)	(86,104)	(2.8)	(41,164)	(1.3)
NET INCOME		277,989	9.0	153,096	4.9
OTHER COMPREHENSIVE INCOME (LOSS) Items that may be reclassified subsequently to profit or loss: Unrealized gain (loss) on investments in equity	6(29)	(333)	-	-	-
instruments at fair value through other comprehensive income Exchange differences arising on translation		22,099	0.7	96,158	3.1
of foreign operations
Income tax (expense) benefit related to items that may be reclassified subsequently to profit or loss		(4,420)	(0.1)	(19,232)	(0.6)
Total other comprehensive income (loss), net of income tax		17,346	0.6	76,926	2.5
TOTAL COMPREHENSIVE INCOME		\$295,335	9.6	\$230,022	7.4
NET INCOME ATTRIBUTABLE TO:
Owners of the parent		277,989	9.0	153,096	4.9
Non-controlling interests		-	-	-	-
Total		\$277,989	9.0	\$153,096	4.9
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO:
Owners of the parent		295,335	9.6	230,022	7.4
Non-controlling interests		-	-	-	-
Total		\$295,335	9.6	\$230,022	7.4
EARNINGS PER SHARE
Basic	6(30)	\$1.11		\$0.61
Diluted	6(30)	\$1.10		\$0.61

SUNONWEALTH ELECTRIC MACHINE INDUSTRY CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Reviewed, Not Audited)

(In Thousands of New Taiwan Dollars)

	ity Att ribu tabl Sh areh old of t he P Equ e to t ers aren
				Oth Equ ity ers
					han Exc ge	real ized Un	al E ity Tot qu
			aine d E ing Ret arn s		Dif fere nce s on	Gai n (L ) on Fin ial oss anc	Att ribu tabl e to
				riat ed Un app rop	nsla ting for eign Tra	air Val hro h Ass at F ue T ets ug	Sha reh old of ers	olli No ontr n-c ng	al Tot
Odi Sha nar y re	Cap ital Sur lus p	Leg al R eser ve	Spe cial Re serv e	Ear nin gs	Op ion erat s	Oth er C reh ive inco omp ens me	the Pa t ren	Inte rest s	Eq uity
\$2, BA LA NC E A T JA NU AR Y 1 , 20 22 509 ,297	\$36 6,90 3	\$84 2,9 84	\$24 2,0 95	\$70 0,8 64	( \$29 8) 5,35	\$ -	\$4,3 66,7 85	- \$	\$4,3 66,7 85
Net inc e fo r th e th nth ded Ma rch 31 , 20 22 om ree mo s en -	-	-	-	153 ,096	-	-	153 ,096	-	153 ,096
Oth reh ive inco ( loss ) for the thre onth er c omp ens me e m s -	-	-	-	-	76, 926	-	76, 926	-	76, 926
ded Ma rch 31 , 20 22, of i net tax en nco me
Tot al c reh ive inco for the thre onth omp ens me e m s -	-	-	-	153 ,096	76, 926	-	,022 230	-	230 ,022
ded Ma rch 31 , 20 22, of i net tax en nco me
Inc se ( dec se) in n trol ling int ts rea rea on- con eres -	-	-	-	-	-	-	-	-	-
\$2, BA LA NC E A T M AR CH 31 , 20 22 509 ,297	\$36 6,90 3	\$84 2,9 84	\$24 2,0 95	\$85 3,96 0	\$21 ( 8,43 2)	\$ -	\$4,5 96, 807	- \$	\$4,5 96, 807
BA LA NC E A T JA AR Y 1 , 20 23 \$2, 509 ,297 NU	\$36 6,90 3	\$88 5,79 9	\$29 5,35 8	\$1, 402 ,877	( \$25 57) 7,7	\$ -	\$5,2 02,4 77	- \$	\$5,2 02,4 77
Net inc e fo r th e th nth ded Ma rch 31 , 20 23 om ree mo s en -	-	-	-	277 ,989	-	-	277 ,989	-	277 ,989
Oth reh ive inco ( loss ) for the thre onth er c omp ens me e m s -	-	-	-	-	17,6 79	( 333 )	17, 346	-	17,3 46
ded rch of i Ma 31 , 20 23, net tax en nco me
Tot al c reh ive inco for the thre onth omp ens me e m s -	-	-	-	277 ,989	17, 679	( 333 )	,335 295	-	295 ,335
ded rch of i Ma 31 , 20 23, net tax en nco me
Inc se ( dec se) in n trol ling int ts rea rea on- con eres -	-	-	-	-	-	-	-	-	-
\$2, BA LA NC E A T M AR CH 31 , 20 23 509 ,297	\$36 6,90 3	\$88 5,79 9	\$29 5,35 8	\$1, 680 ,866	( \$24 8) 0,07	( \$33 3)	\$5, 497 ,812	- \$	\$5,4 97, 812

SUNONWEALTH ELECTRIC MACHINE INDUSTRY CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Reviewed, Not Audited)

(In Thousands of New Taiwan Dollars)

	Three Months Ended March 31
	2023	2022
CASH FLOWS FROM OPERATING ACTIVITIES
Income before income tax	\$364,093	\$194,260
Adjustments :
Adjustments to reconcile profit (loss)
Depreciation	98,456	92,370
Amortization	36,479	36,800
Expected credit loss (gain)	(2,169)	(2,439)
Net loss (gain) on financial assets and liabilities at fair value through	(958)	51
profit or loss
Interest expense	11,864	8,300
Interest income	(9,535)	(2,177)
Share of loss (profit) of associates and joint ventures accounted for using equity method	(138)	40
Loss (gain) on disposal and retirement of property, plant and equipment	100	68
Gain on disposal of investments	-	(920)
Total adjustments to reconcile profit (loss)	134,099	132,093
Net changes in operating assets and liabilities
Decerase (increase) in financial assets mandatorily classified as	84,356	70,600
at fair value through profit or loss
Decerase (increase) in notes receivable	(1,919)	11,296
Decrease (increase) in accounts receivable	537,459	237,614
Decrease (increase) in other receivables	30,550	1,341
Decrease (increase) in inventories	222,934	(117,742)
Decrease (increase) in prepayments	(21,066)	(11,460)
Decrease (increase) in other financial assets	(221,561)	-
Total changes in operating assets	630,753	191,649
Net changes in operating liabilities
Increase (decrease) in contract liabilities	(33,381)	17,053
Increase (decrease) in notes payable	(33,601)	-
Increase (decrease) in accounts payable	(810,530)	(297,055)
Increase (decrease) in other payables	(331,409)	(161,524)
Increase (decrease) in provisions	(2,568)	3,066
Increase (decrease) in advance receipts	14	260
Increase (decrease) in net defined benefit liabilities	(1,691)	(1,535)
Total changes in operating liabilities	(1,213,166)	(439,735)
Total net changes in operating assets and liabilities	(582,413)	(248,086)
Total adjustments	(448,314)	(115,993)

	Three Months Ended March 31
	2023	2022
Cash generated from (used in) operations	(\$84,221)	\$78,267
Interest received	5,315	2,204
Interest paid	(13,354)	(7,616)
Income tax paid	11,504	237
Net cash generated from (used in) operating activities	(80,756)	73,092
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of financial assets at fair value through other comprehensive income or loss	(20,000)	-
Acquisition of property, plant and equipment	(100,296)	(117,659)
Increase in refundable deposits	(1,509)	(2,154)
Increase in other receivables	-	(503)
Other receivables decrease	13,229	-
Acquisition of intangible assets	(5,015)	(3,816)
Increase in other noncurrent assets	(6,456)	(27,800)
Net cash used in investing activities	(120,047)	(151,932)
CASH FLOWS FROM FINANCING ACTIVITIES
Increase in short-term loans	90,334	-
Decrease in short-term loans	-	(237,153)
Increase in guarantee deposits	41,487	59,574
Decrease in guarantee deposits	(2,181)	(328)
Repayments of lease principal	(23,407)	(9,899)
Net cash generated from (used in) financing activities	106,233	(187,806)
EFFECT OF EXCHANGE RATE CHANGES ON	6,962	33,459
CASH AND CASH EQUIVALENTS
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(87,608)	(233,187)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	2,457,337	1,912,018
CASH AND CASH EQUIVALENTS, END OF PERIOD	\$2,369,729	\$1,678,831

SUNONWEALTH ELECTRIC MACHINE INDUSTRY CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED MARCH 31, 2023 and 2022 (Reviewed, Not Audited) (In Thousands of New Taiwan Dollars, Except Stated Otherwise)

1. GENERAL INFORMATION

Sunonwealth Electric Machine Industry Co., Ltd. (collectively as the "Company") was incorporated in October 1980. The Company engages mainly in the manufacturing and selling of AC/DC brushless fans, electric fans, motors and related components, and micro cooling fans. The principal operating activities of the Company and its subsidiaries (collectively as the "Group") are described in Note 4(3). In addition, the Company has no ultimate parent company.

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

2. THE AUTHORIZATION OF CONSOLIDATED FINANCIAL STATEMENTS

The accompanying consolidated financial statements were approved and authorized for issue by the Board of Directors on May 4, 2023.

3. APPLICATION OF NEW AND AMENDED STANDARDS AND INTERPRETATIONS

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

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

	Effective Date Announced
New IFRSs	by IASB
Amendments to IAS 1 "Disclosure of Accounting Policies"	January 1, 2023 (Note 1)
Amendments to IAS 8 "Definition of Accounting	January 1, 2023 (Note 2)
Estimates"
Amendment to IAS 12 "Deferred Tax Related to Assets	January 1, 2023 (Note 3)
and Liabilities Arising from a Single Transaction"

Note 1: The amendments will be applied prospectively for annual reporting periods beginning on or after January 1, 2023.

Note 2: The amendments are applicable to changes in accounting estimates and changes in accounting policies that occur on or after the beginning of the annual reporting period beginning on or after January 1, 2023.

Note 3: Except for otherwise specified with for temporary differences associated with leases and decommissioning obligations, the amendments will be applied prospectively to transactions that occur on or after January 1, 2022.
A.Amendments to IAS 1 "Disclosure of Accounting Policies"

This amendment clarifies that when the scale or nature of a transaction, other event or situation is material, and the relevant accounting policy information is also material to the financial report, the relevant material accounting policy information should be disclosed. Conversely, if the enterprise determines that the scale or nature of a transaction, other event or situation is not significant or the relevant accounting policy information is not significant although it is significant, it does not need to disclose non-significant accounting policy information, but the enterprise prepares accounting the conclusion that the policy information is insignificant does not affect the relevant disclosures required by other IFRS standards.

B.Amendments to IAS 8 "Definition of Accounting Estimates"

This amendment defines accounting estimates as the monetary amount of financial statements subject to measurement uncertainty, and provides further explanations, except for corrections due to errors in the previous period, the impact of changes in input values or measurement techniques on accounting estimates is a change in accounting estimates.

C.Amendment to IAS 12 "Deferred Tax Related to Assets and Liabilities Arising from a Single Transaction"

The amendments narrow the scope of the recognition exemption in paragraphs 15 and 24 of IAS 12 so that it no longer applies to transactions that, on initial recognition, give rise to equal taxable and deductible temporary differences. When the Group initially applies the amendments, it will recognize the cumulative effect of the amendments applied initially as an adjustment to the opening balance of the retained earnings (or other components of equity, as appropriate) at the beginning of the earliest expression period, and re-edit the information during the comparison period.

As of the date the accompany consolidated financial statements are authorized for issue, the Group is still evaluating the impact on its financial position and financial performance as a result of the initial adoption of the aforementioned standards or interpretations. The related impact will be disclosed when the Group completes the evaluation.

The Group has evaluated the aforementioned standards and interpretations, and there's no significant effect to the Group's financial position and performance.

(2) Effect of new issuances or amendments to IFRSs as endorsed by the FSC but not yet adopted: None.

(3) Effect of the IFRSs issued by IASB but not yet endorsed and issued into effect by FSC:

	Effective Date Announced
New IFRSs	by IASB
Amendments to IFRS 10 and IAS 28 "Sale or Contribution	To be determined by IASB
of Assets between an Investor and its Associate or Joint
Venture"
IFRS 17 "Insurance Contracts"	January 1, 2023
Amendments to IFRS 17	January 1, 2023
Amendments to IFRS 17 "Initial application IFRS 17 and	January 1, 2023
IFRS 9 – Compare Information"
Amendments to IFRS 16 "Lease liabilities in sale and	January 1, 2024
leaseback"
Amendments to IAS 1 "Classification of Liabilities as	January 1, 2024
Current or Noncurrent"
Amendments to IAS 1 "Non-current Liabilities with	January 1, 2024
Covenants "

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Except for the following, the accounting policies applied in these consolidated financial statements are consistent with those applied in the consolidated financial statements for the year ended December 31, 2022. These policies have been consistently applied to all the periods presented, unless otherwise stated.

(1) Compliance statement

A. The accompanying consolidated financial statements have been prepared in conformity with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IAS 34, "Interim Financial Reporting", endorsed and issued into effect by the FSC.
B. The consolidated financial statements should be read with the consolidated financial statements for the year ended December 31, 2022.

(2) Basis of preparation

A. Except for the following items, these consolidated financial statements have been prepared under the historical cost convention:
a. Financial assets and financial liabilities (including derivative instruments) at fair value through profit or loss.
b. Financial assets at fair value through other comprehensive income or loss.
c. Defined benefit liabilities recognized based on the net amount of pension fund assets less present value of defined benefit obligation.
B. The preparation of financial statements in compliance with IFRSs requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Group's accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 5.
(3) Basis of consolidation
A. Basis for preparation of consolidated financial statements:
- a. All subsidiaries are included in the Group's consolidated financial statements. Subsidiaries are all entities (including structured entities) controlled by the Group. The Group controls an entity when the Group is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Consolidation of subsidiaries begins from the date the Group obtains control of the subsidiaries and ceases when the Group loses control of the subsidiaries.
- b. Inter-company transactions, balances and unrealized gains or losses on transactions between companies within the Group are eliminated. Accounting policies of subsidiaries have been adjusted where necessary to ensure consistency with the policies adopted by the Group.
- c. Profit or loss and each component of other comprehensive income are attributed to the owners of the parent and to the non-controlling interests. Total comprehensive income is attributed to the owners of the parent and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.
- d. Changes in a parent's ownership interest in a subsidiary that do not result in the parent losing control of the subsidiary (transactions with non-controlling interests) are accounted for as equity transactions, i.e. transactions with owners in their capacity as owners. 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.
- e. When the Group loses control of a subsidiary, the Group remeasures any investment retained in the former subsidiary at its fair value. That fair value is regarded as the fair value on initial recognition of a financial asset or the cost on initial recognition of the associate or joint venture. Any difference between fair value and carrying amount is recognized in profit or loss. All amounts previously recognized in other comprehensive income in relation to the subsidiary are reclassified to profit or loss or transferred directly to retained earnings as appropriate, on the same basis as would be required if the related assets or liabilities were disposed of. That is, when the Group loses control of a subsidiary, all gains or losses previously recognized in other comprehensive income in relation to the subsidiary should be reclassified from equity to profit or loss, if such gains or losses would be reclassified to profit

or loss when the related assets or liabilities are disposed of.

			Percentage of Ownership
Investee / Subsidiary	Main Businesses	March 31, 2023	December 31, 2022	March 31, 2022
1.Sunonwealth Electric Machine Industry Co., Ltd.
Sunon INC.	Manufacturing and	100.00%	100.00%	100.00%
	selling of fans
Sunon SAS.	Manufacturing and	100.00%	100.00%	100.00%
	selling of fans
Sunon Corporation	Manufacturing and	100.00%	100.00%	100.00%
	selling of fans
Sunonwealth Electric	Manufacturing and	99.99%	99.99%	99.99%
Machine Ind.(H.K.)Ltd.	selling of fans
Successful Century	Investments	100.00%	100.00%	100.00%
Co., Ltd. BVI Sunon International Limited	Investments	100.00%	100.00%	100.00%
Sunon Electronics India	Manufacturing and	99.99%	99.99%	99.99%
Private Limited	selling of fans
Sunon Electronics Philippines Corp. Sunon Properties	Manufacturing and selling of fans Real estate development	99.99% 99.99%	99.99% 99.99%	99.99% 99.99%
Philippines Corp.	and investment
2.BVI Sunon International Limited
Sunon Electronic	General investment	100.00%	100.00%	100.00%
(Foshan) Co., Ltd. Sunon Electronic	and trade Manufacturing and	100.00%	100.00%	100.00%
(Bei Hai) Co., Ltd.	selling of new type electronic parts
3.Sunon Electronic (Foshan) Co., Ltd.
Beihai Li Zhun Electronics Co., Ltd.	Manufacturing and selling of fans	66.67%	66.67%	100.00%
4.Successful Century Co., Ltd.
Sunon Electronic	Manufacturing and	100.00%	100.00%	100.00%
(Kunshan) Co., Ltd.	selling of fans
5. Sunon Electronic (Kunshan) Co., Ltd.
Beihai Li Zhun Electronics Co., Ltd.	Manufacturing and selling of fans	33.33%	33.33%	-
6.Sunon SAS
Sunon Deutschland GmbH	Selling of fans	100.00%	100.00%	100.00%

B. The consolidated entities were as follows:

a.The financial statements of above mentioned subsidiaries, expect for those of the significant subsidiaries, Successful Century Co., Ltd., Sunon Electronic (Kunshan) Co., Ltd., BVI Sunon International Limited and Sunon Electronic (Bei Hai) Co., Ltd. (Included in March 31, 2022), were not reviewed by independent auditors.
b. Changes in subsidiaries: None.
C. Subsidiaries not included in the consolidated financial statements: None.
D. Adjustments for subsidiaries with different balance sheet dates: None.
E. Material restrictions: None.
F. Contents of the parent company's securities held by subsidiaries: None.

G. Subsidiaries that have non-controlling interest that are material to the Group: None.

(4) Financial instruments

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

Financial assets and financial liabilities are recognized initially at fair value plus or minus, in the case of investments not at fair value through profit or loss, directly attributable transaction costs. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in profit or loss.

A. Financial assets

a. Category of financial assets

Financial assets are recognized on a trade date basis.

Financial assets are classified into the following categories: financial assets at FVTPL and financial assets at amortized cost.

(a) Financial asset at FVTPL

For certain financial assets are classified as at FVTPL when such a financial asset is mandatorily and designated classified. Financial assets mandatorily classified as at FVTPL include investments in equity instruments which are not designated as at FVTOCI and debt instruments that do not meet the amortized cost criteria or the FVTOCI criteria.

When the financial assets meet one of the following conditions, the Group designates them as measured at fair value through profit and loss at the time of initial recognition:

i. It is a mixed (combined) contract; or
ii. It can eliminate or significantly reduce measurement or recognition inconsistencies; or
iii. It is an investment that manages and evaluates its performance on a fair value basis based on written risk management or investment strategies.

Financial assets at fair value through profit or loss are measured at fair value, dividends generated are recognized in other income, and interest income and gains or losses arising from remeasurement are recognized in other gains and losses. For the determination of fair value, please refer to Note 12.

(b) Financial assets at amortized cost

Financial assets that meet the following conditions are subsequently measured at amortized cost:

a. The financial asset is held within a business model whose objective is to

hold financial assets in order to collect contractual cash flows; and

b. The contractual terms of the financial assets give rise on specified date to cash flow that are solely payments of principal and interest on the principal amount outstanding.

Financial assets at amortized cost, which equals to gross carrying amount determined by the effective interest method less any impairment loss. Exchange differences are recognized in profit or loss.

Expect for the following two cases, interest income is calculated by applying the effective interest rate to the gross carrying amount of a financial asset.

a. Purchased or originated credit-impaired financial assets: for those financial assets, the Group applies the credit-adjusted effective interest rate to the amortized cost of the financial asset from initial recognition.
b. Financial assets that are not purchased or originated credit-impaired financial assets but subsequently have become credit-impaired financial assets: for those financial assets, the Group shall apply the effective interest rate to the amortized cost of the financial asset in subsequent reporting periods.
(c) Investments in equity instruments at FVTOCI

On initial recognition, the Company may make an irrevocable election to designate investments in equity instruments as at FVTOCI. Designation at FVTOCI is not permitted if the equity investment is held for trading or if it is contingent consideration recognized by an acquirer in a business combination.

Investments in equity instruments at FVTOCI are subsequently measured at fair value with gains and losses arising from changes in fair value recognized in other comprehensive income and accumulated in other equity. The cumulative gain or loss will not be reclassified to profit or loss on disposal of the equity investments, instead, they will be transferred to retained earnings.

Dividends on these investments in equity instruments at FVTOCI are recognized in profit or loss when the Company's right to receive the dividends is established, unless the Company's right clearly represent a recovery of part of the cost of the investment.

b. Impairment of financial assets
A. At the end of each reporting period, a loss allowance for expected credit loss is recognized for financial assets at amortized cost (including accounts receivable), investments in debt instruments that are measured at FVTOCI, lease receivable and contract assets.
B. The Group always recognize lifetime Expected Credit Loss (i.e. ECL) for accounts receivables. For other financial assets, the Group recognize lifetime ECL when there has been a significant increase in credit risk since initial recognition. If, on the other hand, the credit risk on the financial instrument has not increased significantly since initial recognition, the Group measures the loss

allowance for that financial instrument at an amount equaling to 12-month ECL.

C. Expected credit losses reflect the weighted average of credit losses with the respective risks of a default occurring as the weights. 12-month ECL represents the portion of lifetime ECL that is expected to result from default events on a financial instrument that are possible within 12 months after the reporting date. In contrast, lifetime ECL represents the expected credit losses that will result from all possible default events over the expected life of a financial instrument.
D. The Group recognizes an impairment gain or loss in profit or loss for all financial instruments with a corresponding adjustment to their carrying amount through a loss allowance account, except for investments in debt instruments that are measured at FVTOCI, for which the loss allowance is recognized in other comprehensive income and does not reduce the carrying amount of the financial asset.
c. Derecognition of financial assets

The Group derecognizes a financial asset when one of the following conditions is meet:

(a) The contractual rights to receive cash flows from the financial asset expire.
(b) The contractual rights to receive cash flows from the financial asset have been transferred and the Group has transferred substantially all risks and rewards of ownership of the financial asset.
(c) The Group neither retains nor transfers substantially all risks and rewards of ownership of the financial asset; however, it has not retained control of the financial asset.

On derecognition of financial asset at amortized cost in its entirety, the difference between the financial asset's carrying amount and the sum of the consideration received is recognized in profit or loss. On derecognition of debt instrument measured at fair value through other comprehensive income, the difference between the financial asset's carrying amount and the sum of the consideration received and the cumulative gain or loss that had been recognized in other comprehensive income and accumulated in equity is recognized in profit or loss. On derecognition of equity instruments at fair value through other comprehensive income in its entirety, the cumulative profit and loss will be transferred directly to retained earning without reclassified into profit and loss.

B. Equity instruments

The Group classifies the instrument issued as a financial liability or an equity instrument in accordance with the substance of the contractual arrangement and the definitions of a financial liability, and an equity instrument. An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. The transaction costs of an equity transaction are accounted for as a deduction from equity to the extent they are incremental costs directly attributable to the equity transaction that otherwise would have been avoided.

C. Financial liabilities
a. Subsequent measurement

Except for the following conditions, all financial liabilities are measured at amortized cost in accordance with the effective interest method:

(a) Financial liabilities are classified as at fair value through profit or loss when the financial liability is either held for trading or is designated as at fair value through profit or loss. Financial liabilities classified as held for trading are mainly for repurchasing in the short term when they occur, and derivatives other than financial guarantee contracts or designated and effective hedging instruments. Financial assets meet one of the following conditions, the Group designates them as measured at fair value through profit and loss at the time of initial recognition:
i. It is a mixed (combined) contract; or
ii. It can eliminate or significantly reduce measurement or recognition inconsistencies; or
iii. It is an instrument that manages and evaluates its performance on a fair value basis based on written risk management or investment strategies.
b. Derecognition of financial liabilities

The Group derecognizes financial liabilities when, and only when, the Group's obligations are discharged, cancelled or they expire. The difference between the carrying amount of the financial liability derecognized and the consideration paid and payable (including any non-cash assets transferred or liabilities assumed) is recognized in profit or loss.

D. Modification of Financial Instruments

When the contractual cash flows of a financial instrument are renegotiated or modified and the renegotiation or modification does not result in the derecognition of that financial instrument, the Group recalculates the gross carrying amount of the financial asset or the amortized cost of the financial liabilities using the original effective interest rate and recognizes a modification gain or loss in profit or loss. Any costs or fees incurred adjust the carrying amount of the modified financial instrument and are amortised over the remaining term of the modified financial instrument. If the renegotiation or modification results in that the derecognition of that financial instrument is required, then the financial instrument is derecognized accordingly.

If the basis for determining the contractual cash flows of a financial asset or financial liability changes resulting from interest rate benchmark reform and the change is necessary as a direct consequence of interest rate benchmark reform and the new basis for determining the contractual cash flows is economically equivalent to the previous basis, the Group applies the practical expedient to account for that change as a change in effective interest rate. If changes are made to a financial asset or financial liability in addition to changes to the basis for determining the contractual cash flows required by interest rate benchmark reform, the Group first applies the practical expedient aforementioned to the changes required by interest rate benchmark reform, and then applies the applicable requirements to any additional changes to which that practical expedient does not apply.

(5) Retirement benefits

The 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.

(6) Income taxes

Income tax expense represents the sum of the tax currently payable and deferred tax. Interim period income taxes are assessed on an annual basis and calculated by applying to an interim period's pre-tax income the tax rate that would be applicable to expected total annual earnings. The effect of a change in tax rate resulting from a change in tax law is recognized consistently with the accounting for the transaction itself which gives rise to the tax consequence, and this is recognized in profit or loss, other comprehensive income or directly in equity in full in the period in which the change in tax rate occurs.

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

The same critical accounting judgments and key sources of estimates and uncertainty have been followed in these consolidated financial statements as those applied in the preparation of the consolidated financial statements for the year ended December 31, 2022.

6. CONTENTS OF SIGNIFICANT ACCOUNTS

Except for the following, please refer to Note 6 to the consolidated financial statements for year ended December 31, 2022.

Item	March 31, 2023	December 31, 2022	March 31, 2022
Cash on hand	\$725	\$909	\$687
Cash in banks	2,369,004	2,456,428	1,678,144
Total	\$2,369,729	\$2,457,337	\$1,678,831

(1) Cash and cash equivalents

A.The financial institutions dealing with the Group are credit worthy, and the Group does transactions with a number of financial institutions to diversify credit risk that are unlikely to be expected to default

B. The Group had no cash and cash equivalents pledged to others.

(2) Financial assets at fair value through profit or loss - current
Item	March 31, 2023	December 31, 2022	March 31, 2022
Non-derivative financial assets
Beneficiary certificates	\$129,638	\$211,827	\$193,836

A. The Group recognized net gain (loss) of financial assets at fair value through profit or loss of \$958 thousand and \$869 thousand for the three months ended March 31, 2023 and 2022, respectively.

B. The Group had no financial assets at fair value through profit or loss pledged to others.

(3) Notes receivable, net

Item	March 31, 2023	December 31, 2022	March 31, 2022
At amortized cost
Notes receivable	\$32,038	\$30,119	\$21,305
Less: Loss allowance	(24)	(24)	(24)
Net	\$32,014	\$30,095	\$21,281

A. The Group had no notes receivable pledged to others.

B. Please refer to Note 6(4) for the relevant disclosure of loss allowance for notes receivable.

Item	March 31, 2023	December 31, 2022	March 31, 2022
At amortized cost
Accounts receivable	\$2,855,580	\$3,393,039	\$3,200,314
Less: Loss allowance	(6,821)	(8,982)	(8,900)
Net	\$2,848,759	\$3,384,057	\$3,191,414

(4) Accounts receivable, net

A. The accounts receivable that were neither past due nor impaired was following the Group's credit policy determined by reference to the industry characteristics, operation scale and current financial position of the counterparties. The average credit period on sales of goods was 3-4 months.

B. The Group had no accounts receivable pledged to others.
C. To reduce major credit risk, the Group bought credit guarantee insurance.
D. The Group applies the simplified approach to provisions for expected credit losses, which permits the use of a lifetime expected credit losses provision for trade receivables (including other receivables). The expected credit losses on trade receivables are estimated by reference to past account aging records of the debtor, an analysis of the debtor's current financial position, industrial trend. The Group recognizes loss allowance hazed on the expected credit loss ratio of customers by different risk levels with consideration of factors of historical loss ratios and customers' financial conditions, competitiveness and business outlook.

E. The Group measures the loss allowance for notes receivable and accounts receivable (including other receivables) according to the provision matrix:

	Expected
	Credit Loss	Gross Carrying	Loss Allowance
March 31, 2023	Rate	Amount	(Lifetime ECL)	Amortized Cost
Not past due	0.05%-5%	\$2,690,707	(\$6,219)	\$2,684,488
Past due within 30 days	0.05%-5%	273,831	(507)	273,324
Past due 31-90 days	0.05%-5%	16,773	(26)	16,747
Past due over 91 days	0.05%-5%	7,426	(93)	7,333
Total		\$2,988,737	(\$6,845)	\$2,981,892

	Expected Credit Loss	Gross Carrying	Loss Allowance
December 31, 2022	Rate	Amount	(Lifetime ECL)	Amortized Cost
Not past due	0.05%-5%	\$3,254,881	(\$8,236)	\$3,246,645
Past due within 30 days	0.05%-5%	274,092	(669)	273,423
Past due 31-90 days	0.05%-5%	33,162	(8)	33,154
Past due over 91 days	0.05%-5%	1,701	(93)	1,608
Total		\$3,563,836	(\$9,006)	\$3,554,830

March 31, 2022	Expected Credit Loss Rate	Gross Carrying Amount	Loss Allowance (Lifetime ECL)	Amortized Cost
Not past due	0.05%-5%	\$3,008,769	(\$7,349)	\$3,001,420
Past due within 30 days	0.05%-5%	284,398	(1,473)	282,925
Past due 31-90 days	0.05%-5%	14,240	(16)	14,224
Past due over 91 days	0.05%-5%	103	(86)	17
Total		\$3,307,510	(\$8,924)	\$3,298,586

F. Movements of the loss allowance for notes and accounts receivable were as follows:

	Three Months Ended March 31
	2023	2022
Beginning balance	\$9,006	\$11,234
Add: Provision for impairment	-	-
Less: Reversal of impairment	(2,169)	(2,439)
Less: Write-offs	-	-
Less: Foreign exchange differences	8	129
Ending balance	\$6,845	\$8,924

The above provision has already taken into consideration of collateral or other credit enhancement. The other credit enhancement possessed by above receivables was \$999,128 thousand, \$1,200,416 thousand and \$933,740 thousand as of March 31, 2023, December 31, 2022 and March 31, 2022, respectively.

The Group writes off a trade receivable when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery of the receivable. For trade receivables that have been written off, the Group continues to engage in enforcement activity to attempt to recover the receivables which are due.

Where recoveries are made, these are recognized in profit or loss. The Group's trade receivables for offsetting the contract amount are \$0 thousand for the three months ended March 31, 2023 and 2022.

G.Please refer to Note 12 for the relevant credit risk management and assessment method.

Item	March 31, 2023	December 31, 2022	March 31, 2022
Raw materials	\$886,374	\$887,795	\$1,013,605
Supplies	30,888	30,910	44,536
Work in process	280,813	373,313	397,368
Finished goods	1,229,665	1,359,480	1,167,693
Net	\$2,427,740	\$2,651,498	\$2,623,202

(5) Inventories and operating costs

A. The related inventory gain (loss) recognized as operating cost for the three months ended March 31, 2023 and 2022 were as follows:

	Three Months Ended March 31
Item	2023	2022
Cost of goods sold	\$2,255,576	\$2,514,904
Unallocated overheads and labor cost	24,142	14,843
Gain (loss) on inventory valuation	(18,166)	12,826
Others	238	(124)
Total	\$2,261,790	\$2,542,449

B. The Group recognized inventory valuation loss (gain) of (\$18,166) and \$12,826 thousand for the three months ended March 31, 2023 and 2022, respectively, as a result of inventory's write-down to net realizable value or increasing price of some products and decreasing part of inventory.
C. The Group had no inventories pledged to others.

(6) Other financial assets - current
-----------------------------------------	--

Item	March 31, 2023	December 31, 2022	March 31, 2022
Time deposits with maturities of more than three months	\$221,561	\$ -	\$ -

noncurrent
Item	March 31, 2023	December 31, 2022	March 31, 2022
Equity instruments
Domestic listed stocks	\$20,000	\$ -	\$ -
Subtotal	\$20,000	\$ -	\$ -
Evaluation adjustment	(333)	-	-
Total	\$19,667	\$ -	\$ -

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

A. The Group invests in domestic unlisted stocks in accordance with its medium/ long-term strategies and expects to make a profit through long-term investment. Management of the Group believes that it is not consistent with the afore-mentioned long-term investment planning if the short-term fair value changes of such investment are presented in profit or loss. Therefore, the Group elects to designate such investment as to be measured at FVTOCI.

B. Please refer to Note 12 for relevant credit risk management and assessment methods.

C. The financial assets at FVTOCI were not pledged as collateral.

(8) Investments accounted for using equity method

Item	March 31, 2023	December 31, 2022	March 31, 2022
Associates:
Associates without significance	\$5,966	\$5,800	\$7,314

A. Associates:

Shares of individually insignificant associates of the Group are summarized as follows:

	Three Months Ended March 31
	2023	2022
Share of:
Net gain (loss)	\$138	(\$40)
Other comprehensive income (loss) (net after tax)	-	-
Total comprehensive income (loss)	\$138	(\$40)

B. For the three months ended March 31, 2023 and 2022, investment was accounted for using the equity method and the share of profit or loss and other comprehensive income of investment was calculated based on financial statements which have been not reviewed.

Item	March 31, 2023	December 31, 2022	March 31, 2022
Land	\$820,335	\$820,335	\$802,249
Buildings	475,629	474,211	472,642
Machinery and equipment	1,149,571	1,103,363	999,939
Miscellaneous equipment	499,338	478,998	450,888
Leasehold improvements	325,816	304,607	226,286
Equipment to be inspected and construction in progress	63,273	135,597	125,686
Total cost	\$3,333,962	\$3,317,111	\$3,077,690
Less: Accumulated depreciation	(1,113,660)	(1,043,697)	(918,960)
and impairment
Net	\$2,220,302	\$2,273,414	\$2,158,730

(9) Property, plant and equipment

	Land	Buildings	Machinery and Equipment	Miscellaneous Equipment	Leasehold Improvement	Equipment to be Inspected and Construction in Progress	Total
Cost
Balance at January 1, 2023	\$820,335	\$474,211	\$1,103,363	\$478,998	\$304,607	\$135,597	\$3,317,111
Additions	-	142	6,232	9,205	858	45,860	62,297
Disposals	-	-	(9,804)	(112)	-	-	(9,916)
Reclassification	-	-	45,992	9,286	19,783	(75,061)	-
Return and discount	-	-	-	-	(911)	(44,418)	(45,329)
Effect of foreign currency exchange differences	-	1,276	3,788	1,961	1,479	1,295	9,799
Balance at March 31, 2023	\$820,335	\$475,629	\$1,149,571	\$499,338	\$325,816	\$63,273	\$ 3,333,962
Accumulated Depreciation and Impairment
Balance at January 1, 2023	\$ -	\$256,366	\$369,659	\$255,384	\$162,288	\$ -	\$1,043,697
Depreciation expense	-	3,967	48,840	14,408	7,916	-	75,131
Disposals	-	-	(9,704)	(112)	-	-	(9,816)
Effect of foreign currency exchange differences	-	759	2,326	959	604	-	4,648
Balance at March 31, 2023	\$ -	\$261,092	\$411,121	\$270,639	\$170,808	\$ -	\$1,113,660

	Land	Buildings	Machinery and Equipment	Miscellaneous Equipment	Leasehold Improvement	Equipment to be Inspected and Construction in Progress	Total
Cost
Balance at January 1, 2022	\$802,249	\$455,152	\$925,039	\$417,203	\$204,397	\$77,374	\$2,881,414
Additions	-	183	17,270	4,463	6,332	95,973	124,221
Disposals	-	-	(946)	(1,008)	-	-	(1,954)
Reclassification	-	7,333	18,328	14,987	8,892	(49,540)	-
Transfer to other noncurrent assets	-	-	-	-	-	(1,416)	(1,416)
Effect of foreign currency exchange differences	-	9,974	40,248	15,243	6,665	3,295	75,425
Balance at March 31, 2022	\$802,249	\$472,642	\$999,939	\$450,888	\$226,286	\$125,686	\$3,077,690

Accumulated Depreciation and Impairment
Balance at January 1, 2022	\$ -	\$242,547	\$224,741	\$216,904	\$137,944	\$ -	\$822,136
Depreciation expense	-	3,710	43,191	13,170	4,497	-	64,568
Disposals	-	-	(946)	(940)	-	-	(1,886)
Effect of foreign currency exchange differences	-	5,744	15,322	9,053	4,023	-	34,142
Balance at March 31, 2022	\$ -	\$252,001	\$282,308	\$238,187	\$146,464	\$ -	\$918,960

A. The details of interest capitalized: None.
B. The Group did not assess the impairment because there is no sign of impairment for the three months ended March 31, 2023.
C. Property, plant and equipment pledged for the borrowings: Please refer to Note 8.
D.Reconciliations of current additions and the acquisition of property, plant and equipment in statement of cash flows were as follows:

	Three Months Ended March 31
Item	2023	2022
Acquisition of property, plant and equipment	\$16,968	\$124,221
Decrease (increase) in equipment payable	83,328	(6,562)
Cash paid for acquisition of property, plant and equipment	\$100,296	\$117,659

E. The Group's Property, plant and equipment are depreciated on a straight-line basis with its useful life as follows:

Buildings, 2 to 57 years;

Machinery and Equipment, 2 to 15 years;

Miscellaneous Equipment, 1 to 24 years;

Leasehold Improvement, 1 to 22 years.

(10) Lease agreement

A. Right-of-use assets

Item	March 31, 2023	December 31, 2022	March 31, 2022
Land use right	\$402,152	\$393,707	\$396,672
Land and building	421,333	397,582	486,712
Machinery and equipment	-	-	55,452
Other equipment	31,266	29,663	26,750
Total cost	\$854,751	\$820,952	\$965,586
Less: Accumulated depreciation and impairment	(246,813)	(227,075)	(215,023)
Net	\$607,938	\$593,877	\$750,563

		Land and	Machinery and	Other
Cost	Land-use Right	Buildings	Equipment	Equipment	Total
Balance at January 1, 2023	\$393,707	\$397,582	\$ -	\$29,663	\$820,952
Additions	-	24,411	-	4,927	29,338
Disposals	-	(1,551)	-	(405)	(1,956)
Derecognition	-	(1,570)	-	(3,064)	(4,634)
Effect of foreign currency exchange differences	8,445	2,461	-	145	11,051
Balance at March 31, 2023	\$402,152	\$421,333	\$ -	\$31,266	\$854,751
Accumulated Depreciation and Impairment
Balance at January 1, 2023	\$14,093	\$196,060	\$ -	\$16,922	\$227,075
Depreciation expense	1,419	19,825	-	1,988	23,232
Derecognition	-	(1,570)	-	(3,064)	(4,634)
Effect of foreign currency exchange differences	284	782	-	74	1,140
Balance at March 31, 2023	\$15,796	\$215,097	\$ -	\$15,920	\$246,813

Cost	Land-use Right	Land and Buildings	Machinery and Equipment	Other Equipment	Total
Balance at January 1, 2022	\$392,043	\$474,757	\$53,390	\$24,437	\$944,627
Additions	-	4,077	-	2,358	6,435
Disposals	-	(7,092)	-	-	(7,092)
Derecognition	-	-	-	(596)	(596)
Effect of foreign currency exchange differences	4,629	14,970	2,062	551	22,212
Balance at March 31, 2022	\$396,672	\$486,712	\$55,452	\$26,750	\$965,586
Accumulated Depreciation and Impairment
Balance at January 1, 2022	\$8,432	\$146,853	\$15,523	\$11,372	\$182,180
Depreciation expense	1,394	23,236	1,499	1,577	27,706
Derecognition	-	-	-	(596)	(596)
Effect of foreign currency exchange differences	159	4,720	632	222	5,733
Balance at March 31, 2022	\$9,985	\$174,809	\$17,654	\$12,575	\$215,023
B. Lease liabilities
Item	March	31, 2023	December 31, 2022	March	31, 2022
Carrying amount of lease liabilities
- current		\$85,370		\$80,951	\$99,764

- noncurrent \$149,981 \$150,425 \$277,653

Ranges of discount rates for lease liabilities are as follows:

Item	March 31, 2023	December 31, 2022	March 31, 2022
Land and buildings	0.63%-6.87%	0.63%-6.87%	0.63%-4.16%
Machinery and equipment	-	3.13%-3.65%	3.13%-3.65%
Other equipment	0.77%-4.60%	0.66%-4.60%	0.66%-4.60%

Please refer to Note 12(3) for lease liabilities with repayment periods.

C. Material lease-in activities and terms

The Group leased some land and buildings, etc. as factory, with the lease terms of 1 to 75 years. There is no sign of impairment of right-of-use assets as of March 31, 2023. Therefore, the Group didn't assess the impairment.

D. Subleasing: None.
E. Other lease information:
(1) Please refer to Note 6(11) for agreement to lease investment properties under operating lease.
(2) The current lease relevant expense information is as follows:

	Three Months Ended March 31
	2023	2022
Short-term lease expense	\$2,252	\$7,578
Low-value asset lease expense	\$76	\$65
Variable lease payments that excluded in the measurement of lease liabilities	\$ -	\$ -
Total cash outflow for leases (Note)	(\$25,735)	(\$17,542)

(Note): Including current principle paid for lease liabilities.

(11) Investment properties, net

Item	March 31, 2023	December 31, 2022	March 31, 2022
Land	\$77,109	\$77,109	\$77,109
Buildings	40,062	40,062	40,062
Total cost	\$117,171	\$117,171	\$117,171
Less: Accumulated depreciation and impairment	(32,158)	(32,065)	(31,778)
Net	\$85,013	\$85,106	\$85,393

Cost	Land	Buildings	Total
Balance at January 1, 2023	\$77,109	\$40,062	\$117,171
Additions	-	-	-
Balance at March 31, 2023	\$77,109	\$40,062	\$117,171
Accumulated Depreciation and Impairment
Balance at January 1, 2023	\$ -	\$32,065	\$32,065
Depreciation expense	-	93	93
Balance at March 31, 2023	\$ -	\$32,158	\$32,158

Cost	Land	Buildings	Total
Balance at January 1, 2022	\$77,109	\$40,062	\$117,171
Additions	-	-	-
Balance at March 31, 2022	\$77,109	\$40,062	\$117,171
Accumulated Depreciation and Impairment
Balance at January 1, 2022	\$ -	\$31,682	\$31,682
Depreciation expense	-	96	96
Balance at March 31, 2022	\$ -	\$31,778	\$31,778

A. Rental income and direct operating expenses of investment properties are shown below:

	Three Months Ended March 31
Item	2023	2022
Rental income of investment properties	\$480	\$448
Direct operating expense incurred for the investment properties with current rental income	\$93	\$96

B. The maturity analysis of operating lease payments receivable for investment properties is as follows:

	March 31, 2023	December 31, 2022	March 31, 2022
Year 1	\$1,921	\$1,921	\$1,386
Year 2	1,921	1,921	171
Year 3	1,878	1,921	171
Year 4	1,750	1,750	129
Year 5	1,312	1,750	-
Over 5 years	-	-	-
Total	\$8,782	\$9,263	\$1,857

C. Investment property is depreciated on a straight-line basis over its estimated useful life of 10 to 57 years.

D. The fair values of investment properties held by the Group were all \$160,060 thousand, as of March 31, 2023, December 31, 2022 and March 31, 2022, respectively. The fair value determination was performed by independent qualified professional appraisers. The valuation was based on the comparison method, and the fair value was measured by using Level 3 inputs. Please refer to Note12(4).
E. The accumulated impairment of investment properties were all \$0 thousand, as of March 31, 2023, December 31, 2022 and March 31, 2022, respectively.
F. The Group had no investment properties pledged to others.

(12) Intangible assets
Item	March 31, 2023	December 31, 2022	March 31, 2022
Trademark	\$8,403	\$8,448	\$8,087
Computer software	33,907	37,465	30,195
Total cost	\$42,310	\$45,913	\$38,282
Less: Accumulated amortization and impairment	(15,714)	(18,860)	(11,578)
Net	\$26,596	\$27,053	\$26,704

	Trademark	Computer Software	Total
Cost
Balance at January 1, 2023	\$8,448	\$37,465	\$45,913
Additions	-	3,161	3,161
Derecognition	-	(6,761)	(6,761)
Effect of foreign exchange differences	(45)	42	(3)
Balance at March 31, 2023	\$8,403	\$33,907	\$42,310
Accumulated Amortization and Impairment
Balance at January 1, 2023	\$ -	\$18,860	\$18,860
Amortization expenses	-	3,593	3,593
Derecognition	-	(6,761)	(6,761)
Effect of foreign exchange differences	-	22	22
Balance at March 31, 2023	\$ -	\$15,714	\$15,714

	Trademark		Computer Software	Total
Cost
Balance at January 1, 2022		\$7,923	\$30,507	\$38,430
Additions		-	5,785	5,785
Derecognition		-	(6,350)	(6,350)
Effect of foreign exchange differences		164	253	417
Balance at March 31, 2022	\$8,087		\$30,195	\$38,282
Accumulated Amortization and Impairment
Balance at January 1, 2022	\$	-	\$13,944	\$13,944
Amortization expenses		-	3,877	3,877
Derecognition		-	(6,350)	(6,350)
Effect of foreign exchange differences		-	107	107
Balance at March 31, 2022	\$	-	\$11,578	\$11,578

(13) Short-term loans
Item	March 31, 2023	December 31, 2022	March 31, 2022
Unsecured loan	\$1,377,850	\$1,287,516	\$1,712,479
Interest range	0.75%-5.56%	0.75%-5.03%	0.63%-1.50%
(14) Other payables
Item	March 31, 2023	December 31, 2022	March 31, 2022
Accrued payroll	\$176,423	\$362,131	\$253,961
Service fee payable	10,353	10,384	11,993
R & D payable	58,135	59,479	44,063
Bonus to employees and remuneration to directors and supervisors	47,927	40,087	22,297
Equipment payable	14,449	97,777	33,295
Others	353,379	508,889	407,786
Total	\$660,666	\$1,078,747	\$773,395

Please refer to Note 7(3) for transactions with related parties.

(15) Provisions - current

Item	March 31, 2023	December 31, 2022	March 31, 2022
Employee benefits	\$52,273	\$54,643	\$45,030

	Three Months Ended March 31
Item	2023	2022
Beginning balance	\$54,643	\$40,942
Additional provisions recognized	1,068	3,066
Provisions used	(3,636)	-
Effect of foreign exchange differences	198	1,022
Ending balance	\$52,273	\$45,030

Provision for employee benefits represents vested short-term service leave entitlements accrued.

(16) Long-term loans and current portion of long-term loans

Item	March 31, 2023	December 31, 2022	March 31, 2022
Mortgage loans	\$ -	\$ -	\$220,000
Credit loans	448,560	407,073	399,140
Less: current portion due within one year	(120,255)	(120,372)	(83,635)
Long-term loans	\$328,305	\$286,701	\$535,505
Interest rate range	0.75%-6.06%	0.75%-5.70%	0.75%-1.87%

A. Refer to Note 8 for assets pledged as collateral for long-term loans.

B. Under the loan agreement, the Group should maintain certain current ratio, debt ratio, interest coverage ratio and tangible net value, etc. based on the Group's audited semi-annual and annual consolidated financial statements. As of March 31, 2023, the Group had no irregularities.

(17) Pension

A. Defined contribution plans
a. The plan under the Labor Pension Act (the "Act") is deemed a defined contribution plan. Pursuant to the Group has made monthly contributions equal to 6% of each employee's monthly salary to employees' pension accounts.
b. The employees of the Group's subsidiaries are members of a state-managed retirement benefit plan operated by local government. The subsidiary is required to contribute amounts calculated at a specified percentage of payroll costs to the retirement benefit scheme to fund the benefits. The only obligation of the Group with respect to the retirement benefit plan is to make the specified contributions to the fund.
c. The total pension expenses were \$47,088 thousand and \$39,025 thousand for the three months ended March 31, 2023 and 2022, respectively.
B. Defined benefit plans
a. The pension under the defined benefit plans were \$109 thousand and \$65 thousand for three months ended March 31, 2023 and 2022. The pensions were calculated using the actuarially determined pension cost discount rates as of December 31, 2022 and 2021.
b. The Group estimated that the Labor Retirement Account is insufficient to pay the labor pension that is expected to meet the retirement conditions next year at the year end of 2022, and funded the difference to reduce net defined benefit liability in March 2023 for \$0 thousand.

(18) Share capital

A. Movements in the number of the Group's ordinary shares outstanding were as follows:

	Three months Ended March 31, 2023
Item	Shares (in thousands)	Amount
Balance at January 1	250,930	\$2,509,297
Capital increase in cash	-	-
Capitalization of retained earnings	-	-
Balance at March 31	250,930	\$2,509,297

	Three months Ended March 31, 2022
Item	Shares (in thousands)	Amount
Balance at January 1	250,930	\$2,509,297
Capital increase in cash	-	-
Capitalization of retained earnings	-	-
Balance at March 31	250,930	\$2,509,297

B. As of March 31, 2023, the authorized capital was \$5,000,000 thousand, consisting of 500,000 thousand shares.

(19) Capital surplus

Item	March 31, 2023	December 31, 2022	March 31, 2022
From merger	\$18,227	\$18,227	\$18,227
From convertible bonds	326,015	326,015	326,015
Treasury share transactions	21,464	21,464	21,464
Reorganization	1,050	1,050	1,050
Differences between considerations and carrying amounts of subsidiaries acquired or disposed	147	147	147
Total	\$366,903	\$366,903	\$366,903

Under the Company Act, the capital surplus generated from the excess of the issuance price over the par value of capital stock and donations can be used to offset deficit or may be distributed as stock dividends or in cash. Under the regulations of the Security Exchange Law, the maximum amount transferred from the foregoing capital surplus to the Company's capital per year shall not be over 10% of the Company's paid-in capital. Capital surplus can't be used to offset deficit unless legal reserve is insufficient. The capital surplus from long-term investments may not be used for any purpose.

(20) Retained earnings and dividend policy

(1) In accordance with the dividend policy as set forth in the amended Articles, where the Company made profit in a fiscal year, the profit shall be first utilized for paying taxes, offsetting losses of previous years, setting aside as legal reserve 10% of the remaining profit, setting aside a special reserve in accordance with the laws and regulations, and the remainder plus prior year's unappropriated earnings will be recommended by The Board of Directors and approved through the Shareholders' meeting.

In consideration of its operation and capital expenditure demands, the Company stipulates appropriate dividend distribution ratio, and proposes for approval in the shareholders' meeting. However, at least 20% of total dividends should be distributed in cash.

(2) Legal reserve may be used to offset a deficit, and be transferred to capital or distributed in cash. However, legal reserve can be transferred to capital or distributed in cash only when the legal reserve has exceeded 25% of the Company's paid-in capital.
(3) Special reserve

Item	March 31, 2023	December 31, 2022	March 31, 2022
Provision for the debit balance of other equity	\$216,203	\$216,203	\$162,940
Provision for initial application of IAS	79,155	79,155	79,155
Total	\$295,358	\$295,358	\$242,095

A. The Company may allocate earnings only after providing special reserve for debt balance in other equity on the date of balance sheet, and the reversal of debit balance in other equity, if any, may be stated into allocable earnings.
B. Upon first-time adoption of IFRSs, the special reserve provided pursuant to the official letter under Jin-Guan-Jheng-Fa-Zih No. 1010012865 dated April 6, 2012 may be reversed to allocable retained earnings in proportion to the special reserve as provided originally, if the Company uses, disposes of or reclassifies the relevant assets in the future.
(4) The appropriation of earnings for 2022 was proposed by the Board of Directors' meeting held in March 2023, while the appropriation of earnings for 2021 was approved by the stockholders' meeting held in June 2022. The details of appropriation are as follows:

Appropriation of Earnings			Dividends Per Share	(NT\$)
Item	2022	2021	2022	2021
Legal reserve	\$109,921	\$42,815
Special reserve	(37,601)	53,263
Cash dividends	652,417	301,116	2.6	1.2
Total	\$724,737	\$397,194

A. The appropriation of earnings for 2022 are to be presented for approval in the shareholders' meeting to be held in June 2023.
B. In the event of repurchase of the Company's shares, transfer, conversion or annulment of treasury stocks, and exercise of employees' stock options, leading to a change in the number of outstanding shares and a consequent change in dividend yield, it is proposed that the chairman is authorized by the Board of Directors to duly adjust stocks and cash payout rates.
(5) Information on the earnings appropriation proposed by the Company's Board of Directors and approved by the Company's shareholders is available on the Market Observation Post System website of the Taiwan Stock Exchange.

(21)Other equity

	Exchange differences on translation of foreign financial	Unrealized gain (loss) on financial asset at fair value through other comprehensive
Item	statements	income	Total
Balance, January 1, 2023	(\$257,757)	\$ -	(\$257,757)
Share of subsidiaries, associates and joint ventures accounted for using equity method	17,679	-	17,679
Unrealized gain (loss) on financial assets at fair value through other comprehensive income	-	(333)	(333)
Balance, March 31, 2023	(\$240,078)	(\$333)	(\$240,411)

	Exchange differences on translation of foreign financial	Unrealized gain (loss) on financial asset at fair value through other comprehensive
Item	statements	income	Total
Balance, January 1, 2022 Share of subsidiaries, associates and joint ventures accounted for using equity method Unrealized gain (loss) on financial assets at fair value through other comprehensive income	(\$295,358) 76,926 -	\$ - - -	(\$295,358) 76,926 -
Balance, March 31, 2022	(\$218,432)	\$ -	(\$218,432)

(22) Operating revenues

Item	Three Months Ended March 31
	2023	2022
Revenue from contracts with customers
Sales	\$3,090,788	\$3,141,092
Sales return	(7,630)	(8,741)
Sales discount	(7,831)	(9,103)
Net	\$3,075,327	\$3,123,248

A. Details of contract revenue

Sales of fans and other related goods are mainly to system manufacturers and distributors. Please refer to Note 14 for the main sale areas.

B. The Group's timing of recognition is transferred the goods at a certain point of time.
C. Contract balances

The Group recognized the receivables, contract assets and contract liabilities in relation to contract revenue as follows:

Item	March 31, 2023	December 31, 2022	March 31, 2022
Receivables	\$2,880,773	\$3,414,152	\$3,212,695
Contract assets	-	-	-
Total	\$2,880,773	\$3,414,152	\$3,212,695
Contract liabilities - current	\$142,783	\$176,164	\$127,464

a. Significant changes in contract assets and contract liabilities The change in the contract assets and contract liabilities primarily result from the timing difference between the satisfaction of performance obligation and the

customer's payment, and there is no other significant change.

b. Amount from previous period's satisfied performance obligations and beginning contract liabilities recognized in the current period as income were as follows:

	Three Months Ended March 31
Revenue in the current period	2023	2022
From beginning contract liabilities	\$176,164	\$110,411
From previous period's satisfied performance obligations	\$ -	\$ -

(23) Labor cost, depreciation and amortization

Item		Three Months ended March 31, 2023
	Operating cost	Operating expenses	Total
Labor cost
Salaries	\$268,314	\$198,791	\$467,105
Insurance	29,244	21,770	51,014
Pension	36,186	11,011	47,197
Others	137,569	14,760	152,329
Depreciation	75,575	22,881	98,456
Amortization	25,068	11,411	36,479
Total	\$571,956	\$280,624	\$852,580

Item		Three Months ended March 31, 2022
	Operating cost	Operating expenses	Total
Labor cost
Salaries	\$391,793	\$188,152	\$579,945
Insurance	24,514	19,355	43,869
Pension	28,537	10,553	39,090
Others	225,484	18,020	243,504
Depreciation	66,429	25,941	92,370
Amortization	25,247	11,553	36,800
Total	\$762,004	\$273,574	\$1,035,578

1. The Company accrued employees' compensation and remuneration to directors and supervisors at the rates not less than 2% and not higher than 5% of net income before income tax, employees' compensation and remuneration to directors and supervisors during the period. For the three months ended March 31, 2023 and 2022, employees' compensation was accrued at \$7,008 thousand and \$919 thousand, respectively, while directors' remuneration was accrued at \$4,112 thousand and \$1,096 thousand, respectively.
1. The employees' compensation and remuneration to directors for the years ended December 31, 2022 and 2021 had been approved by the Company's Board of Directors meeting held on March 9, 2023 and March 10, 2022, respectively, and the relevant amounts recognized in the consolidated financial statements were as follows:

	Year ended December 31
		2022		2021
	Employees' compensation	Remuneration to directors	Employees' compensation	Remuneration to directors
Resolution amount of allotment	\$32,000	\$8,000	\$13,000	\$4,000
Recognized in the annual financial statements	32,000	8,000	13,000	4,000
Difference	\$ -	\$ -	\$ -	\$ -

The above mentioned employees' compensation will be paid by cash.

Information about the appropriation of employees' compensation and directors' remuneration by the Company as proposed by the Board of Directors and resolved by the shareholders will be posted in the "Market Observation Post System" at the website of the Taiwan Stock Exchange.

(24)Interest income

	Three months ended March 31
Item	2023	2022
Interest on bank deposits	\$8,555	\$926
Interest on early payment	942	1,197
Others	38	54
Total	\$9,535	\$2,177

(25) Other income

Item Rental income	Three Months Ended March 31
	2023	2022
	\$493	\$456
Others – Sample sales, etc.	10,771	9,872
Others - Subsidy	12,612	-
Others	10,553	13,751
Total	\$34,429	\$24,079

(26) Other gains and losses

	Three Months Ended March 31
Item	2023	2022
Net gain (loss) on financial instruments at FVTPL	\$958	(\$51)
Net currency exchange gain (loss)	(15,006)	46,983
Gain (loss) on disposal of property, plant and equipment	(100)	(68)
Gain on disposal of investments	-	920
Others	(1,892)	(763)
Total	(\$16,040)	\$47,021

(27) Finance costs

Item	Three Months Ended March 31
	2023	2022
Interest on loans	\$10,008	\$5,537
Interest on lease liabilities	1,856	2,763
Less: capitalized amount for qualified assets	-	-
Carrying amount	\$11,864	\$8,300

(28) Income tax expense

A. Components of tax expense:

	Three Months Ended March 31
Current income tax	2023	2022
Income tax incurred in current year	\$36,766	\$19,881
Prior year income tax (over) under estimation	8,931	-
Total	\$45,697	\$19,881
Deferred income tax
The origination and reversal of temporary differences	\$40,407	\$21,283
Total	\$40,407	\$21,283
Income tax expense	\$86,104	\$41,164

The applicable tax rate used by the Group is 20%. In addition, the tax rate applicable to unappropriated earning is 5%. Tax rates used by other group entities operating in other jurisdictions are based on the tax laws in those jurisdictions.

	Three Months Ended March 31
Current income tax	2023	2022
Exchange differences on translation of foreign operations	\$4,420	\$19,232

B. Income tax expense (benefit) recognized in other comprehensive income

C. The tax authorities have rectified Company's income tax returns through 2020.

(29)Other comprehensive income (loss)

	Three Months Ended March 31,2023
Item	Income tax Before tax expense (benefit)		After tax
Items that will not be reclassified subsequently to
profit or loss:
Unrealized gain (loss) on financial assets at fair	(\$333)	\$ -	(\$333)
value through other comprehensive income
Subtotal	(\$333)	\$ -	(\$333)
Items that may be reclassified subsequently to
profit or loss:
Exchange differences on translation of foreign	\$22,099	(\$4,420)	\$17,679
financial statements
Subtotal	\$22,099	(\$4,420)	\$17,679
Recognized in other comprehensive income (loss)	\$21,766	(\$4,420)	\$17,346

	Three Months Ended March 31,2022
	Income tax
Item	Before tax	expense (benefit)	After tax
Items that will not be reclassified subsequently to
profit or loss:
Unrealized gain (loss) on financial assets at fair	\$ -	\$ -	\$ -
value through other comprehensive income
Subtotal	\$ -	\$ -	\$ -
Items that may be reclassified subsequently to
profit or loss:
Exchange differences on translation of foreign	\$96,158	(\$19,232)	\$76,926
financial statements
Subtotal	\$96,158	(\$19,232)	\$76,926
Recognized in other comprehensive income (loss)	\$96,158	(\$19,232)	\$76,926

(29) Earnings per share

	Three Months Ended March 31
Item	2023	2022
(1) Basic earnings per share:
Net income attributable to owners of the parent	\$277,989	\$153,096
Weighted average shares outstanding (in thousands)	250,930	250,930
Basic earnings per share (after tax)	\$1.11	\$0.61
(2) Diluted earnings per share:
Net income attributable to owners of the parent	\$277,989	\$153,096
Effect of potential dilutive ordinary shares	-	-
Net income used in computation of diluted earnings per share	\$277,989	\$153,096
Weighted average shares outstanding (in thousands)	\$250,930	\$250,930
Impact on employees' compensation (Note)	723	350
Weighted average number of ordinary shares outstanding after dilution (in thousands)	\$251,653	\$251,280
Diluted earnings per share (after tax)	\$1.10	\$0.61

(Note) Since the Company offered to settle compensation paid to employees in cash or shares, the Company 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.

7. RELATED PARTY TRANSACTIONS

(1) Parent Company and ultimate controlling party:

The Group has no parent Company and ultimate controlling party.

(2) Related party name and category:

Related Party Name	Related Party Category
Guang Sheng Investment Corporation	Other related party
Shehng-Yuan Children Development and	Other related party
Adult Support Services Center
Yo Yuan Investment Corporation	Other related party
Suzhou Shengyixing Heat Transfer Technology Co., Ltd.	Associates

(3) Significant transactions with related parties:

A. Sales: None.
B. Purchase:

	Three months ended March 31
Related Party Category	2023	2022
Associates	\$26,950	\$14,466

The purchase price is equivalent to other suppliers, and the payment period is 3-4 months. Except for the agreement of both parties to pay in advance and collect interest on the payment.

C. Contract assets: None.

D. Contract liabilities: None.

E. Balance of receivables (excluding lending to related parties and contract assets):

Item	Related Party Category	March 31, 2023	December 31, 2022	March 31, 2022
Receivables	Associates	\$ -	\$1,893	\$ -
Other receivables	Associates	\$ -	\$49	\$3,369
Other receivables	Other related party	2	-	-
		\$2	\$49	\$3,369

F. Balance of payables (excluding borrowing from related parties):

Item	Related Party Category	March 31, 2023	December 31, 2022	March 31, 2022
Account payable	Associates	\$21,153	\$13,420	\$11,345
Other payables	Associates	\$242	\$246	\$585

G. Advance receipts:

Item	Related Party	March 31,	December 31,	March 31,
	Category	2023	2022	2022
Account payable	Associates	\$14	\$ -	\$ -

H. Property transactions: None.

I. Lessee arrangements:

Item	Related Party Category	March 31, 2023	December 31, 2022	March 31, 2022
Refundable deposits	Other related parties	\$26	\$26	\$26
Lease liabilities - current	Other related parties	\$154	\$154	\$52
Lease liabilities - noncurrent	Other related parties	\$52	\$91	\$ -

			Three Months Ended March 31
Item		Related Party Category	2023	2022
Interest expense	Other related parties		\$1	\$1
Above		lease terms are based on the contract, and rent is paid		monthly.
J.	Rent arrangements: None.
	K. Financing activities -	lending to related parties:
	(a) Ending balance
Item	Related Party Category	March 31, 2023	December 31, 2022	March 31, 2022
Other receivables	Associates	\$	- \$13,229	\$13,528
(b)	Interest income
			Three months ended March 31
	Related Party Category		2023	2022
	Associates		\$ -	\$50
Rate			-	4.35%
L. M. N. Others:	Financing activities - Guarantee for related parties: None.	borrowing from related parties: None.
	a. Guarantee deposits
Related Party Category		March 31, 2023	December 31, 2022	March 31, 2022
Other related parties		\$55	\$55	\$55
	b. Miscellaneous income
	Related Party Category		Three Months Ended March 31 2023	2022
Other related parties			\$49	\$49

			Miscellaneous income is mainly rent income. Rent prices are based on	to the
	contract agreements	and received monthly.
	c. Miscellaneous expenses:
			Three Months Ended March 31
	Related Party Category		2023	2022
Associates			\$153	\$361

Miscellaneous expenses are R&D expenses.

(4) Key management compensation

		Three Months Ended March 31
Item		2023	2022
Salaries and other short-term employee benefits		\$16,584	\$14,899
Post-employment benefits		-	-
Other long-term employee benefits		-	-
Termination benefits		-	-
Share-based payments		-	-
Total		\$16,584	\$14,899
8. PLEDGED ASSETS
Item	March 31, 2023	December 31, 2022	March 31, 2022
Property, plant and equipment (net)	\$496,858	\$496,858	\$496,858

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACT COMMITMENTS

(1) As of March 31, 2023, December 31, 2022 and March 31, 2022, the Group issued guarantee notes for bank loans amounting to \$3,738,200 thousand, \$3,247,560 thousand and \$3,788,750 thousand, respectively.
(2) As of March 31, 2023, December 31, 2022 and March 31, 2022, the unused letters of credit issued by the Group were as follows:

			(In thousands)
Item	March 31, 2023	December 31, 2022	March 31, 2022
L/C Amount	USD 1,497	USD 3,906	USD 4,135

(3) As of March 31, 2023, December 31, 2022 and March 31, 2022, the note endorsement for material purchase were as follows:

			(In thousands)
Item	March 31,	December 31,	March 31,
	2023	2022	2022
Bank acceptance	USD	USD	USD
	1,377	2,114	1,840

(4) As of March 31, 2023, December 31, 2022 and March 31, 2022, the Group provided guarantees for others. Please refer to Note 13 for the information.
(5) Statement of lawsuit

SIAE Microelettronica S.P.A. filed a lawsuit against the Group for the infringement on April 8, 2020. The Group has appointed the attorney to proceed with the litigation, and the result of the first-instance judgment declared by Kaohsiung District Court in Taiwan on June 30, 2022 is that "The plaintiff's claim and the application of provisional execution are both dismissed. The litigation expenses shall be borne by the plaintiff". Moreover, the plaintiff did not file an appeal within the statutory period, and the judgment of first instance of this case was determined on August 3, 2022.

(6) Significant contract
A. The Group entered into the land usage right transfer contract with Hermosa Ecozone Development Corporation in Year 2020. The main contents are as below:
- (A) Transfer object: land usage right of 137,096 square meters at Lot 1 Block 12 in Hermosa Ecozone Industrial Park for the construction of the plant.
- (B) Land usage right period: 75 years.
- (C) Transfer price of land usage right: \$410,992 thousand (PHP 685,480 thousand).
B. The Group entered into the land usage right transfer contract with Farms Agribusiness Corporation in Kunshan Economic and Technological Development Zone in Year 2000. The contents of the contract were as below:
- (A) Transfer object: land usage right of 48,688 square meters at Kunshan Economic and Technological Development Zone for the construction of the plant and dormitory.
- (B) Land usage right period: 50 years.
- (C) Transfer price of land usage right: US\$828 thousand (RMB 6,842 thousand).
(7) The group issuance of the third time of unsecured overseas convertible bonds with par value at an aggregate principal amount at upper limit of 1,200,000 thousand, The issuance period is five years and the coupon rate is 0% have been set on March 9, 2023. The case has been reported to the Financial Supervisory Commissinon and has been declared effective on April 21, 2023.

10. SIGNIFICANT DISASTER LOSS: NONE.

11. SIGNIFICANT SUBSEQUENT EVENTS: NONE.

12. OTHERS

(1) Seasonality or periodicity of operations

The operation of the Group's is not influenced by seasonality and periodicity.

(2) Capital risk management

There were no significant changes in the Group's policies for capital risk management for the three months ended March 31, 2023 as compared with the consolidated financial statements for the year ended December 31, 2022. Please refer to Note 12(1) of the consolidated financial statements for the year ended December 31, 2022 for the related information.

(3) Financial instruments
A. Financial risk of financial instruments

Financial risk management policies

The Group's activities expose it to a variety of financial risks: market risk (including foreign exchange risk, interest rate risk and price risk), credit risk and liquidity risk. The Group's overall risk management program focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Group's financial performance.

The plans for material treasury activities are reviewed by board of directors in accordance with procedures required by relevant regulations or internal controls. During the implementation of such plans, the Group Treasury function must comply with certain treasury procedures that provide guiding principles for overall financial risk management and segregation of duties.

Significant financial risks and degrees of financial risks

a. Market risk
(a) Foreign exchange rate risk

There were no significant changes in the nature and degree of material financial risk for the three months ended March 31, 2023 as compared with the consolidated financial statements for the year ended December 31, 2022.

Please refer to Note 12(2) of the consolidated financial statements for the year ended December 31, 2022 for the related information.

(b) Foreign currency risk and sensitivity analysis (including consolidated elimination items and incompletely write-off of exchange rate risk)

					Sensitivity Analysis
	Foreign Currency	Exchange Rate	Carrying Value (NTD)	Variation	Profit or Loss Impact	Equity Impact
Financial assets
Monetary items
USD:NTD	101,054	30.4500	3,077,092	Increase 1%	30,771	-
EUR:NTD	12,167	33.1500	403,339	Increase 1%	4,033	-
USD:RMB	70,525	6.8717	2,147,485	Increase 1%	21,475	-
USD:EUR	2,465	0.9186	75,058	Increase 1%	751	-
USD:PHP	2,651	54.4290	80,736	Increase 1%	807	-
Financial liabilities
Monetary items
USD:NTD	52,776	30.4500	1,607,044	Increase 1%	(16,070)	-
EUR:NTD	494	33.1500	16,386	Increase 1%	(164)	-
USD:RMB	49,548	6.8717	1,508,750	Increase 1%	(15,088)	-
USD:EUR	5,130	0.9186	156,218	Increase 1%	(1,562)	-
USD:PHP	893	54.4290	27,203	Increase 1%	(272)	-

March	31,	2023
-------	-----	------

					Sensitivity Analysis
	Foreign	Exchange	Carrying		Profit or	Equity
	Currency	Rate	Value (NTD)	Variation	Loss Impact	Impact
Financial assets
Monetary items
USD:NTD	107,717	30.7100	3,307,974	Increase 1%	33,080	-
EUR:NTD	13,666	32.7200	447,161	Increase 1%	4,472	-
USD:RMB	94,832	6.9646	2,912,276	Increase 1%	29,123	-
USD:EUR	1,953	0.9386	59,969	Increase 1%	600	-
USD:PUP	1,456	56.1221	44,712	Increase 1%	447	-
Financial liabilities
Monetary items
USD:NTD	69,369	30.7100	2,130,318	Increase 1%	(21,303)	-
EUR:NTD	636	32.7200	20,804	Increase 1%	(208)	-
USD:RMB	72,180	6.9646	2,216,650	Increase 1%	(22,167)	-
USD:EUR	5,497	0.9386	168,810	Increase 1%	(1,688)	-
USD:PUP	590	56.1221	18,131	Increase 1%	(181)	-

March 31, 2022

December 31, 2022

					Sensitivity Analysis
	Foreign Currency	Exchange Rate	Carrying Value (NTD)	Variation	Profit or Loss Impact	Equity Impact
Financial assets
Monetary items
USD:NTD	91,248	28.6250	2,611,975	Increase 1%	26,120	-
EUR:NTD	9,131	31.9200	291,462	Increase 1%	2,915	-
USD:RMB	85,643	6.3482	2,451,523	Increase 1%	24,515	-
USD:EUR	2,414	0.8968	69,108	Increase 1%	691	-
Financial liabilities
Monetary items
USD:NTD	61,445	28.6250	1,758,866	Increase 1%	(17,589)	-
EUR:NTD	289	31.9200	9,221	Increase 1%	(92)	-
USD:RMB	91,911	6.3482	2,630,942	Increase 1%	(26,309)	-
USD:EUR	4,191	0.8968	119,977	Increase 1%	(1,200)	-

When New Taiwan dollar appreciates and other variation factors stay unchanged, there will be the same but opposite amount of influence as of March 31, 2023, December 31, 2022 and March 31, 2022.

The details of unrealized exchange gain (loss) for monetary items due to material exchange rate fluctuation were as follow:

		Three Months Ended March 31, 2023			Three Months Ended March 31, 2022
		Foreign Exchange Gain (Loss)			Foreign Exchange Gain (Loss)
	Foreign Currency (In thousands)	Exchange Rate	Carrying Amount (In thousands)	Foreign Currency (In thousands)	Exchange Rate	Carrying Amount (In thousands)
Financial Assets
Monetary Items
USD: NTD	-	30.4020	(8,742)	-	28.0210	63,296
EUR: NTD	-	32.6200	8,962	-	31.4200	6,717
USD: RMB	(5,017)	6.8476	(22,275)	285	6.3504	1,257
USD: EUR	(40)	0.9320	(1,303)	10	0.8918	326
USD: PHP	(542)	54.8570	(301)	321	51.5600	174
Financial Liabilities
Monetary Items
USD: NTD	-	30.4020	(944)	-	28.0210	(25,489)
EUR: NTD	-	32.6200	(200)	-	31.4200	(53)
USD: RMB	4,075	6.8476	18,094	2,659	6.3504	11,733
USD: EUR	296	0.9320	9,661	(61)	0.8918	(1,904)
USD: PHP	612	54.8570	339	-	51.5600	-

b. Price risk

The Group is exposed to equity instrument price risk because the investments held by the Group are classified on the consolidated balance sheet as at fair value through profit or loss, or at fair value through other comprehensive income or loss.

The Group is exposed to beneficiary certificates. If the price of the Group's equity investments rises (or falls) 1%, the net income resulting from equity instruments at fair value through profit and loss will increase (or decrease) \$1,296 thousand and \$1,938 thousand for the three months ended March 31, 2023 and 2022, respectively. The other comprehensive income from equity instruments at fair value through other comprehensive income or loss will increase (or decrease) 197 thousand for the three months ended March 31, 2023.

c. Interest rate risk

The carrying amount of the financial assets and liabilities that exposed interest rate risk as reporting date was as follow:

	Carrying Amount
Item	March 31, 2023 December 31, 2022 March 31, 2022
Fair value interest rate risk:
Financial assets	\$221,561	\$ -	\$ -
Financial liabilities	(235,351)	(231,376)	(377,417)
Net	(\$13,790)	(\$231,376)	(\$377,417)

Cash flow interest rate risk:

Financial assets	\$2,355,558	\$2,386,482	\$1,685,404
Financial liabilities	(1,826,410)	(1,694,589)	(2,331,619)
Net	\$529,148	\$691,893	(\$646,215)

(a) Sensitivity analysis of fair value interest rate risk instrument

The Group does not classify any fixed-rate instruments as financial assets at fair value through profit or loss and financial assets at fair value through other comprehensive income or loss. In addition, the Group does not designate derivatives (interest rate swap) as hedge instruments under hedge accounting. Therefore, the change of interest rate at reporting date does not have influence on net income and other comprehensive income.
(b) Sensitivity analysis of cash flow interest rate risk instrument

The Group's financial instruments with variable interest rate are those with floating-rate. If interest rate increases 1%, the net income will increase \$1,323 thousand and (\$1,615) thousand for the three months ended March 31, 2023 and 2022, respectively.

B. Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a contract leading to a financial loss to the Group. The Group is exposed to credit risk from operating activities, primarily accounts receivables, and from investing activities, primarily deposit and other financial instruments. Credit risk is managed separately for business related and financial related exposures.

a. Business related credit risk

In order to maintain the credit quality of accounts receivables, the Group has established procedures to monitor and limit exposure to credit risk on trade receivables. Credit evaluation is performed in the consideration of the relevant factors which may affects the customer's paying ability such as financial condition, external and internal credit scoring, historical experience, and economic conditions.

b. Financial credit risk

The Group's exposure to financial credit risk which pertained to bank deposits and other financial instruments were evaluated and monitored by Group Treasury function. The Group only deals with creditworthy counterparties, banks, and government so that no significant credit risk was identified. In addition, the Group has no financial assets at amortized and investments in debt instruments at fair value through other comprehensive income.

(a) Credit concentration risk:

As of March 31, 2023, December 31, 2022 and March 31, 2022, the Group's ten largest customers accounted for 26.95%, 36.55% and 32.42% of accounts receivable, respectively. The Group believes the concentration of credit risk is insignificant for the remaining accounts receivable. The Group continuously evaluated customers' financial situation. To reduce major credit risk, the Group bought credit guarantee insurance, and asked customers to make payment in advance.

(b) Measured in expected credit loss
(i) Account receivables apply the simplified approach. Please prefer to Note 6(4) for details.
(ii)Indications for determining whether the credit risk is increased significantly: None (the Group does not have any debt instrument investments that are either measured at amortized cost, or at FVTOCI).
c. Collaterals and other credit enhancement held to avoid credit risks from financial assets.

The following table shows the maximum exposure to credit risk regarding financial assets recognized in the consolidated balance sheets, pledged collateral, master netting arrangements and other credit enhancement held by the Group:

March 31, 2023	Carrying Value	Collateral	Net Settlement Agreement	Other Credit Strengthening	Total
Financial instruments subject to IFRS 9 impairment requirements and derogated from credit	\$ -	\$ -	\$ -	\$ -	\$ -
Financial instruments not subject to IFRS 9 impairment requirements:
Financial assets at fair value through profit or loss Financial assets at fair value	129,638	-	-	-	-
through other comprehensive income or loss	19,667	-	-	-	-
Total	\$149,305	\$ -	\$ -	\$ -	\$ -

Decrease Amount of Credit Risk Maximum Exposure

				Decrease Amount of Credit Risk Maximum Exposure
December 31, 2022	Carrying Value	Collateral	Net Settlement Agreement	Other Credit Strengthening	Total
Financial instruments subject to IFRS 9 impairment requirements and derogated from credit	\$ -	\$ -	\$ -	\$ -	\$ -
Financial instruments not subject to IFRS 9 impairment requirements: Financial assets at fair value	211,827	-	-	-	-
through profit or loss Financial assets at fair value through other comprehensive income or loss	-	-	-	-	-
Total	\$211,827	\$ -	\$ -	\$ -	\$ -

			Decrease Amount of Credit Risk Maximum Exposure
March 31, 2022	Carrying Value	Collateral	Net Settlement Agreement	Other Credit Strengthening	Total
Financial instruments subject to IFRS 9 impairment requirements and derogated from credit	\$ -	\$ -	\$ -	\$ -	\$ -
Financial instruments not subject to IFRS 9 impairment requirements: Financial assets at fair value through profit or loss Financial assets at fair value through other comprehensive income or loss	193,836 -	- -	- -	- -	- -
Total	\$193,836	\$ -	\$ -	\$ -	\$ -

C. Liquidity risk

a. Liquidity risk management:

There were no significant changes in the Group's objects and policies for liquidity risk management for the three months ended March 31, 2023 as compared with the consolidated financial statements for the year ended December 31, 2022.

b. Financial liabilities with repayment periods:

The following table details the Group's remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods.

Non-derivative Financial liabilities	Within 1 year	1-2 years	2-5 years	Over 5 years	Contract Cash Flow	Carrying Value
Short-term loans	\$1,377,850	\$ -	\$ -	\$ -	\$1,377,850	\$1,377,850
Notes payable	102,754	-	-	-	102,754	102,754
Accounts payable	2,368,735	23	-	-	2,368,758	2,368,758
Other payables	659,631	275	760	-	660,666	660,666
Long-term loans	120,255	191,526	136,779	-	448,560	448,560

March 31, 2023

(Inclusive of current portion)

Lease liabilities	107,554	86,007	79,631	-	273,192	235,351
Guarantee deposits	848	-	-	-	848	848
Total	\$4,737,627	\$277,831	\$217,170	\$ -	\$5,232,628	\$5,194,787

Further information for lease liabilities with repayment periods was as follows:

							Undiscounted
Item	Within 1 year	1-5 years	5-10 years	10-15 years	15-20 years	Over 20 years	payments
Lease liabilities	\$107,554	\$165,638	\$ -	\$ -	\$ -	\$ -	\$273,192

				December 31, 2022
Non-derivative Financial liabilities	Within 1 year	1-2 years	2-5 years	Over 5 years	Contract Cash Flow	Carrying Value
Short-term loans	\$1,287,516	\$ -	\$ -	\$ -	\$1,287,516	\$1,287,516
Notes payable	136,355	-	-	-	136,355	136,355
Accounts payable	3,179,265	23	-	-	3,179,288	3,179,288
Other payables	1,077,293	989	465	-	1,078,747	1,078,747
Long-term loans	120,372	102,720	183,981	-	407,073	407,073
(Inclusive of current portion)
Lease liabilities	86,658	67,974	87,823	-	242,455	231,376
Guarantee deposits	3,029	-	-	-	3,029	3,029
Total	\$5,890,488	\$171,706	\$272,269	\$ -	\$6,334,463	\$6,323,384

Further information for lease liabilities with repayment periods was as follows:

							Undiscounted
Item	Within 1 year	1-5 years	5-10 years	10-15 years	15-20 years	Over 20 years	payments
Lease liabilities	\$86,658	\$155,797	\$ -	\$ -	\$ -	\$ -	\$242,455

				March 31, 2022
Non-derivative Financial liabilities	Within 1 year	1-2 years	2-5 years	Over 5 years	Contract Cash Flow	Carrying Value
Short-term loans	\$1,712,479	\$ -	\$ -	\$ -	\$1,712,479	\$1,712,479
Notes payable	11	-	-	-	11	11
Accounts payable	2,628,923	-	1	-	2,628,924	2,628,924
Other payables	772,443	393	559	-	773,395	773,395
Long-term loans	83,635	113,282	422,223	-	619,140	619,140
(Inclusive of current portion)
Lease liabilities	109,450	109,203	176,675	10,036	405,364	377,417
Guarantee deposits	698	-	-	-	698	698
Total	\$5,307,639	\$222,878	\$599,458	\$10,036	\$6,140,011	\$6,112,064

Further information for lease liabilities with repayment periods was as follows:

							Undiscounted
Item	Within 1 year	1-5 years	5-10 years	10-15 years	15-20 years	Over 20 years	payments
Lease liabilities	\$109,450	\$285,878	\$10,036	\$ -	\$ -	\$ -	\$405,364

The Group does not expect a maturity analysis of which the cash flows timing would be significantly earlier, or the actual amount would be significantly different.

Categories of financial instruments

The carrying value of financial assets and liabilities of the Group as of March 31, 2023, December 31, 2022 and March 31, 2022 was as follows:

\$2,369,729 \$2,457,337	\$1,678,831
2,880,773 3,414,152	3,212,695
101,119 140,678	85,891
221,561 -	-
21,282 19,773	33,537
129,638 211,827	193,836
19,667 -	-


1,377,850 1,287,516	1,712,479
2,471,512 3,315,643	2,628,935
660,666 1,078,747	773,395
235,351 231,376	377,417
448,560 407,073	619,140
848 3,029	698

(4) Fair value information

A. Details of the fair value of the Group's financial assets and financial liabilities not measured at fair value are provided in Note 12(3) C. Details of the fair value of the Group's investment properties measured at cost are provided in Note 6(11).
B. The different levels that the inputs to valuation techniques are used to measure fair value of financial and non-financial instruments have been defined as follows:
Level 1: Quoted prices in active markets for identical assets or liabilities that the entity can access at the measurement date. A market is regarded as active where a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. The fair value of the Group's investment in listed stocks, beneficiary certificates, on-the-run Taiwan central government bonds and

derivative instruments with quoted market prices is included in Level 1.

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. The fair value of the Group's investments in government bonds, corporate bonds, financial debentures, convertible bonds, and most derivative instruments is included in Level 2.
Level 3: Unobservable inputs for the asset or liability. The fair value of the Group's investments in some derivative instruments and equity instruments without active market is included in level 3.
C. Financial instruments that are not measured at fair value

The Group considers that the carrying amounts of financial instruments including cash and cash equivalents, receivables, other financial assets, refundable deposits, short-term loans, payables, long-term loans and guarantee deposits that are not measured at fair value approximate their fair values.

D. The related information of fair value by level

The related information of financial instruments measured at fair value on a recurring basis by level is as follows:

				March 31, 2023
Item	Level 1	Level 2		Level 3		Total
Assets:
Recurring fair value measurements
Financial assets at fair value through profit or loss:
Beneficiary certificates	\$129,638	\$	-	\$	-	\$129,638
Financial assets at fair value
through other comprehensive
income or loss
Domestic unlisted stocks	-		-	19,667		19,667
Total	\$129,638	\$	-	\$19,667		\$149,305

		December 31,	2022
Item	Level 1	Level 2	Level 3	Total
Assets:
Recurring fair value measurements
Financial assets at fair value through profit or loss:
Beneficiary certificates	\$211,827	\$ -	\$ -	\$211,827
Financial assets at fair value
through other comprehensive
income or loss
Domestic unlisted stocks	-	-	-	-
Total	\$211,827	\$ -	\$ -	\$211,827
			March 31, 2022
Item	Level 1	Level 2	Level 3	Total
Assets:
Recurring fair value measurements
Financial assets at fair value through profit or loss:
Beneficiary certificates	\$193,836	\$ -	\$ -	\$ 193,836
Financial assets at fair value
through other comprehensive
income or loss
Domestic unlisted stocks	-	-	-	-
Total	\$193,836	\$ -	\$ -	\$ 193,836

E. Valuation techniques of financial instruments valued at fair value:

(a) The fair value of financial assets and liabilities traded in an active market is based on the quoted market prices. The quotation, which is published by the main exchange center or that which was deemed to be a public bond by the Treasury Bureau of Center Bank, is included in the fair value of the listed securities instruments and the debt instruments in active markets with open bid.

A financial instrument is regarded as the quoted price in an active market if the quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service or regulatory agency; and if those prices represent the actual and regularly occurring market transactions on an arm's length basis. Otherwise, the market is deemed to be inactive. Normally, a market is considered to be inactive when the bid-ask spread is increasing; or the bid-ask spread varies significantly; or there has been a significant decline in trading volume.

(b) Except for the above-mentioned financial instruments traded in an active market, the fair value is based on the valuation techniques or the quotation from the counterparty. The fair value refers to the current fair value of the other financial instruments with similar conditions and characteristics, using a discounted cash flow analysis or other valuation techniques, such as calculations of using models, based on the information acquired from the market at the balance sheet date. When the financial instrument of the Group is not traded in an active market, the

fair value is determined based on the ratio of the quoted market price of the comparative company, its book value per share and its operating situation. Also, the fair value is discounted for its lack of liquidity in the market.

The assets measured by the fair value of the third level of the fair value hierarchy of the Group are used to measure the significant unobservable inputs of fair value.

March 31,2023:

Item	Evaluation technology	Check the input value	interval	Input value and fair value relationship
Financial assets at fair value through other comprehensive income or loss	Market Approach	Lack of liquidity discount rate	14.08%	The higher the degree of lack of liquidity, the lower the fair value estimate

March 31,2022:None

F. There was no transfer between Level 1 and Level 2 for the three months ended March 31, 2023 and 2022
G. Statement of changes in Level 3 fair value hierarchy:

	Investment in unquoted
	financial instruments
	Year Ended March	31
Item	2023	2022
Beginning balance	\$ -	\$ -
Addition	20,000	-
Recognized in other comprehensive income	(333)	-
Ending balance	\$19,667	\$ -

H. Valuation process for Level 3 fair value measurement:

Valuation process regarding fair value Level 3 is conducted, by which the independence of fair value of financial instruments is verified though use of independent data source in order to make the valuation results close to market conditions. Such valuation results are regularly reviewed so as to ensure their reasonableness.

(5) Transfer of financial assets: None.
(6) Offset of financial assets and liabilities: None.

13. SUPPLEMENTARY DISCLOSURES

A. Information on significant transactions (before consolidated elimination)
a. Loans provided to other parties: Table 1
b. Endorsement/guarantee provided: Table 2
c. Marketable securities held: Table 3
d. Marketable securities acquired and disposed of at costs or prices of at least NT\$300 million or 20% of the paid-in capital: Table 4
e. Acquisition of individual real estate properties at costs of at least NT\$300 million or 20% of the paid-in capital: None
f. Disposal of individual real estate properties at prices of at least NT\$300 million or 20% of the paid-in capital: None
g. Total purchases from or sales to related parties of at least NT\$100 million or 20% of the paid-in capital: Table 5
h. Receivables from related parties amounting to at least NT\$100 million or 20% of the paid-in capital: Table 6
i. Information about the derivative financial instruments transaction: None
j. The business relationship between the parent and the subsidiaries and significant transactions between them: Table 7
B. Information on investees (before consolidated elimination): Table 8
C. Information on investments in Mainland China (before consolidated elimination): Table 9
D. Information on major shareholders (including name of the shareholders with shareholding above 5%, shares held and shareholding ratio): Table 10

Table 1

SUNONWEALTH ELECTRIC MACHINE INDUSTRY CO., LTD. AND SUBSIDIARIES

LOANS PROVIDED TO OTHER PARTIES

MARCH 31, 2023

(Amounts in Thousands of New Taiwan Dollars and Foreign Currencies)

		Financial Related	Maximum	Ending	Amount		Nature for			Allowance		Collateral	Financing Limits for	Financing Company's Total
No.	Financing Company	Counter-party	Statement Account	Party	Balance for the Period	Balance (Note 4)	Actually Drawn	Interest Rate	Financing (Note 3)	Transaction Amounts	Reason for Financing	for Bad Debt	Item	Value	Each Borrowing Company (Note 1)	Financing Amount Limits (Note 2)
1	Sunon Electronic (kunshan) Co., Ltd.	Suzhou Shengyixing Heat Transfer Technology Co., Ltd.	Other receivables - related parties	Yes	13,294 (RMB3,000)	-	-	-	2	-	Operating capital	-	-	-	170,018	340,036

Note 1: Financing limits for each borrowing company:

(1) For trading partner:

Shall not be higher than the purchase or sales amount of the most recent year.

(2) For short-term financing:

Shall not exceed 10% of the Company's net worth.

Note 2: The maximum balance of financing activities:
(1) For trading partner:

Shall not exceed 20% of the Company's net worth

(2) For short-term financing: Shall not exceed 20% of the Company's net worth
(3) The policy for loans granted mutually between overseas subsidiaries of which the Company directly or indirectly holds 100% of their voting shares is as follows:

The maximum amount for total loan for individual enterprise shall not exceed 50% of its net worth.

Note 3: The code represents the nature of financing activities as follows:
(1) Related to trading partner is "1".
(2) Short-term financing is "2".

Note 4: The maximum amount was approved by the Board of Directors' meeting.

Table 2

SUNONWEALTH ELECTRIC MACHINE INDUSTRY CO., LTD. AND SUBSIDIARIES

ENDORSEMENTS/GUARANTEES PROVIDED

MARCH 31, 2023

(Amounts in Thousands of New Taiwan Dollars and Foreign Currencies)

No.	Endorsor 1)		Endorsee	Endorsement Limit	Highest Balance	Ending	Actual	Balance Secured	Ratio of Accumulated Amount to	Maximum Amount	Provision of Endorsements	Provision of Endorsements by Subsidiary	Provision of Endorsements to
(Note		Company Name	Relationship (Note 2)	for a Single Entity (Note 3)	During the Period	Balance	Amount Drawn	by Collaterals	Net Worth of the Company	of Endorsement (Note 4)	by Parent Company to Subsidiary	to Parent Company	the Party in Mainland China
0	Sunonwealth Electric	Sunon Electronic	2	1,649,343	NTD 182,700	NTD 182,700	-	-	3.32%	2,748,905	Y	N	Y
	Machine	(Kunshan)			(USD 6,000)	(USD 6,000)
	Industry Co.,	Co., Ltd.
	Ltd.
0	Sunonwealth Electric	Sunon Electronic	2	1,649,343	NTD 650,586	NTD 650,586	-	-	11.83%	2,748,905	Y	N	Y
	Machine	(Bei Hai)			(USD 17,000;	(USD 17,000;
	Industry Co., Ltd.	Co., Ltd.			RMB 30,000)	RMB 30,000)
1	Sunon Electronic	Bei hai Li Zhun	1	158,641	NTD 44,312	NTD 44,312	NTD 44,312	-	5.59%	396,602	N	N	Y
	(Bei Hai)	Electronic			(RMB 10,000)	(RMB 10,000)	(RMB 10,000)
	Co., Ltd.	Co., Ltd.

Note 1: The description of the number column is as follows:

(1) The issuer is represented in 0.

(2) The investee company is numbered sequentially from Arabic numeral 1.

Note 2: The following code represents the relationship with the Company:

Trading partner.
Majority owned subsidiary.
The Company directly and indirectly owns over 50% ownership of the investee company.
A subsidiary jointly owned over 90% by the Company.
Guaranteed by the Company according to the construction contract.
An investee company. The guarantees were provided based on the Company's proportionate share in the investee company.
Joint and several guaranteed by the Company according to the pre-construction contract under Consumer Protection Act.

Note 3: Endorsements/guarantees provided by the Company to a single enterprise and a single foreign affiliate shall not exceed 20% and 30% of

the Company's net worth, respectively.

Note 4: The maximum amount of the endorsements/guarantees provided by the Company shall not exceed 50% of the Company's net worth.

Table 3

SUNONWEALTH ELECTRIC MACHINE INDUSTRY CO., LTD. AND SUBSIDIARIES

MARKETABLE SECURITIES HELD

MARCH 31, 2023

(Amounts in Thousands of New Taiwan Dollars)

					Ending Balance
Holding Company Name	Type and Name of Marketable Securities	Relationship with the Securities Issuer	Financial Statement Account	Number of Shares (in thousands)	Carrying Value	Percentage of Ownership	Fair Value	Note
Sunon wealth Electric Machine Industry Co., Ltd.	Stock – Technology on Prototyping Ultimate Co., Ltd.	None	Financial assets at fair value through other comprehensive income or loss	870	19,667	15.7%	19,667
Sunon Electronic (Bei Hai) Co., Ltd.	Fund - China Resources Yuanda Fund	None	Financial assets at fair value through profit or loss	-	84,980	-	84,980
Bei hai Li Zhun Electronic Co., Ltd.	Fund - China Resources Yuanda Fund	None	Financial assets at fair value through profit or loss	-	44,658	-	44,658

SUNONWEALTH ELECTRIC MACHINE INDUSTRY CO., LTD. AND SUBSIDIARIES

MARKETABLE SECURITIES ACQUIRED AND DISPOSED OF AT COSTS OR PRICES OF AT LEAST

NT\$300 MILLION OR 20% OF THE PAID-IN CAPITAL

MARCH 31, 2023

(Amounts in Thousands of New Taiwan Dollars and Foreign Currencies)

	Marketable					Beginning Balance		Addition (Note)			Disposal			Ending Balance
Company Name	Securities Type and Name	Financial Statement Account	Counter-party	Relationship with the Investor	Shares	Amount	Shares	Amount	Shares	Selling Price	Carrying Value	Gain (loss) on Disposal	Shares	Amount
Sunon Electronic (Bei Hai) Co., Ltd.	AMHQLXTT	Financial assets at fair value through profit or loss	Bank of china	None	-	176,426 (RMB 40,011)	-	117,224 (RMB 26,167)	-	208,670 (RMB 47,000)	208,670 (RMB 47,000)	-	-	84,980 (RMB 19,178)
Bei Hai Li Zhan Electronics Co., Ltd.	AMHQLXTT	Financial assets at fair value through profit or loss	Bank of china	None	-	35,401 (RMB 8,029)	-	257,886 (RMB 58,049)	-	248,629 (RMB 56,000)	248,629 (RMB 56,000)	-	-	44,658 (RMB 10,078)

(Note): Including current purchase of \$372,943 thousand, net profit of financial assets at fair value through profit or loss of \$958 thousand, and the exchange rate

impact of \$1,209 thousand.

SUNONWEALTH ELECTRIC MACHINE INDUSTRY CO., LTD. AND SUBSIDIARIES TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES OF AT LEAST NT\$100 MILLION OR 20% OF THE PAID-IN CAPITAL

MARCH 31, 2023

(Amounts in Thousands of New Taiwan Dollars)

	Company Name Nature of			Transaction Details			Abnormal Transaction		(Notes/Accounts Payable) Or Receivable
	Related Party	Relationships	Purchases/ Sales	Amount	% to Total	Payment Terms	Unit Price	Payment Terms	Ending Balance	% to Total	Remarks
Sunonwealth Electric Machine Industry Co., Ltd.	Sunon Electronic (Bei Hai) Co., Ltd.	Subsidiary	Sales	187,407	7.82%	3 to 4 months	-	-	527,198	18.97%
Sunon Electronic (Kunshan) Co., Ltd.	Sunonwealth Electric Machine Industry Co., Ltd.	Parent	Sales	521,206	46.81%	2 to 3 months	-	-	518,540	41.09%
Sunon Electronics (Bei Hai) Co., Ltd.	Sunonwealth Electric Machine Industry Co., Ltd.	Parent	Sales	1,174,778	98.54%	2 to 3 months	-	-	438,142	94.88%
Bei Hai Li Zhan Electronics Co., Ltd.	Sunon Electronic (Kunshan) Co., Ltd.	The ultimate pareht company	Sales	112,761	40.21%	2 to 3 months	-	-	190,201	62.37%

Note: The above-mentioned parent-subsidiary transactions have been eliminated.

Table 5

SUNONWEALTH ELECTRIC MACHINE INDUSTRY CO., LTD. AND SUBSIDIARIES

RECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST NT\$100 MILLION OR 20% OF THE PAID-IN CAPITAL

MARCH 31, 2023

(Amounts in Thousands of New Taiwan Dollar and Foreign Currencies)

				Turnover		Overdue	Amounts Received	Allowance for
Company Name	Related Party	Relationship	Ending Balance	Rate			in Subsequent	Impairment Loss
					Amou nt	Action Taken	Period (Note1)
Sunonwealth Electric Machine Industry	Sunon SAS	Subsidiary	NTD 217,398	1.53	-	-	NTD 28,947	-
Co., Ltd.	Sunon Electronic (Bai Hai) Co., Ltd.	Subsidiary	NTD 527,198	2.82	-	-	NTD 111,360	-
Sunon Electronic	Sunonwealth Electric Machine		NTD 518,540				NTD 160,450
(Kunshan) Co., Ltd.	Industry Co., Ltd.	Parent	(RMB 117,020)	3.31	-	-	(RMB 36,209)	-
Sunon Electronic	Sunonwealth Electric Machine	Parent	NTD 438,142				NTD 436,889
(Bei Hai) Co., Ltd.	Industry Co., Ltd.		(RMB 98,877)	10.25	-	-	(RMB 98,594)	-
Bei Hai Li Zhan	Sunon Electronic (Kunshan)	The ultimate	NTD 190,201				NTD 62,816
Electronics Co., Ltd.	Co., Ltd.	pareht company	(RMB 42,923)	2.32	-	-	(RMB 14,176)	-

Note 1: Amounts collected as of May 4, 2023.

Note 2: The above-mentioned parent-subsidiary transactions have been eliminated.

Table 7

SUNONWEALTH ELECTRIC MACHINE INDUSTRY CO., LTD. AND SUBSIDIARIES

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS

MARCH 31, 2023

(Amounts in Thousands of New Taiwan Dollars)

					Transaction Details
No. (Note 1)	Company Name	Counter Party	Relationship (Note 2)	Financial Statement Account	Amount	Terms (Note 4)	Percentage of Consolidated Total Revenue or Assets (Note 3)
				Sales	88,079		2.86%
		SunonSAS	1	Accounts receivable	217,398	(Note4)	1.90%
	Sunonwealth Electric			Sales	88,544		2.88%
0	Machine Industry Co., Ltd.	SunonINC	1	Accounts receivable	69,050	(Note4)	0.61%
				Sales	187,407		6.09%
		SunonElectronic (BaiHai) Co., Ltd.	1	Accounts receivable	527,198	(Note4)	4.62%
	Sunon Electronic	Sunonwealth Electric Machine		Sales	521,206		16.95%
1	(Kunshan) Co., Ltd.	Industry Co., Ltd.	2	Accounts receivable	518,540	(Note4)	4.54%
	Sunon Electronic	Sunonwealth Electric Machine		Sales	1,174,778		38.20%
2	(BeiHai) Co., Ltd.	Industry Co., Ltd.	2	Accounts receivable	438,142	(Note4)	3.84%
	Bei Hai Li Zhan	Sunon Electronic (Kunshan)		Sales	112,761		3.67%
3	Electronics Co., Ltd.	Co., Ltd.	3	Accounts receivable	190,201	(Note4)	1.67%

Note 1: The description of the number column is as follows:

(1) The issuer is represented in 0.

(2) The investee company is numbered sequentially from Arabic numeral 1.

Note 2: There are three types of relationships with traders. The type of mark is as follows:

(1) No. 1 represents the transactions from parent company to subsidiary.
(2) No. 2 represents the transactions from subsidiary to parent company.
(3) No. 3 represents the transactions between subsidiaries.
Note 3: The ratio of transaction amount to consolidated revenues or total assets is calculated as follows:
(1) Asset/liability items: Ending balance to total assets;
(2) Profit and loss items: Accumulated amount to consolidated revenues.
Note 4: The prices and terms to related parties were not significantly different from transactions with third parties, except for particular transactions with no similar transactions to compare with. For these transactions, the prices and terms were determined in accordance with mutual agreements.
Note 5: The above-mentioned parent-subsidiary transactions have been eliminated.

SUNONWEALTH ELECTRIC MACHINE INDUSTRY CO., LTD. AND SUBSIDIARIES

NAMES, LOCATIONS AND OTHER INFORMATION OF INVESTEE COMPANIES (EXCLUDING INVESTEE IN MAINLAND)

MARCH 31, 2023

(Amounts in Thousands of New Taiwan Dollars and Foreign Currencies)

		Original Investment Amount Balance as of March						31, 2023
Investor Company	Investee Company	Location	Main Businesses and Products	As of March 31, 2023	As of December 31, 2022	Shares (In Thousands)	Percentage of Ownership	Carrying Value	Net Income (Loss) of the Investee	Share of Profit/Loss of Investee	Remark
	Successful Century Co., Ltd.	British Virgin Islands	Investments	1,136,933	1,136,933	33,880	100.00%	1,652,899	48,710	50,159	-
	BVI Sunon International Limited	British Virgin Islands	Investments	654,017	654,017	-	100.00%	999,312	95,708	96,098	-
	Sunon INC	USA	Manufacturing and sales of fans	49,140	49,140	150	100.00%	195,183	27,161	26,479	-
Sunonwealth	Sunon SAS	France	Manufacturing and sales of fans	16,127	16,127	50	100.00%	64,243	5,867	5,798	-
Electric Machine Industry Co.,	Sunonwealth Electric Machine Ind.(H.K.) Ltd.	Hong Kong	Manufacturing and sales of fans	3,428	3,428	800	99.99%	1,868	(6)	(6)	-
Ltd.	Sunon Corporation	Japan	Manufacturing and sales of fans	4,470	4,470	4	100.00%	1,790	(16)	(16)	-
	Sunon Electronics India Private Limited	India	Manufacturing and sales of fans	4,880	4,880	1,100	99.99%	4,005	192	192	-
	Sunon Electronics Philippines Corp.	Philippines	Manufacturing and sales of fans	200,628	139,338	3,583	99.99%	143,269	(14,858)	(14,858)	-
	Sunon Properties Philippines Corp.	Philippines	Real estate development and investment	430,000	430,000	7,068	99.99%	376,492	(1,677)	(1,677)	-
			Total					3,439,061	161,081	162,169

				Original Investment Amount Shares			Balance as of March	31, 2023
Investor Company	Investee Company	Location	Main Businesses and Products	As of March 31, 2023	As of December 31, 2022 Thousands)		Percentage of Ownership	Carrying Value	Net Income (Loss) of the Investee	Share of Profit/Loss of Investee	Remark
Successful Century Co., Ltd.	Sunon Electronic (Kunshan) Co., Ltd.	China	Manufacturing and selling of fans	USD 34,431	USD 34,431	-	100.00%	USD 55,835	USD 1,602	USD 1,602	-
Sunon Electronic (Kunshan) Co.,	Suzhou Shengyixing Heat Transfer Technology Co., Ltd.	China	Manufacturing and selling of cooling equipment	RMB 3,000	RMB 3,000	-	35.00%	RMB 1,346	RMB 89	RMB 31	-
Ltd.	Beihai Li Zhun Electronics Co., Ltd.	China	Manufacturing and selling of fans	RMB 20,000	RMB 20,000	-	33.33%	RMB 30,102	RMB 10,486	RMB 3,495	-
BVI Sunon	Sunon Electronic (Foshan) Co., Ltd.	China	General investment and trade	RMB 35,911	RMB 35,911	-	100.00%	RMB 70,451	RMB 6,850	RMB 6,850	-
International Limited	Sunon Electronic (Bei Hai) Co., Ltd.	China	Manufacturing and selling of new type electronic parts	RMB 63,732	RMB 63,732	-	100.00%	RMB179,005	RMB 14,725	RMB 14,725	-
Sunon Electronic (Foshan) Co., Ltd.	Beihai Li Zhun Electronics Co., Ltd.	China	Manufacturing and selling of fans	RMB 40,000	RMB 40,000	-	66.67%	RMB60,205	RMB 10,486	RMB 6,991	-
Sunon SAS	Sunon Deutschland GmbH	Germany	Sales of fans	EUR 25	EUR 25	-	100.00%	EUR 57	EUR 41	EUR 41	-

Note:The above-mentioned parent-subsidiary transactions have been eliminated.

Table 9

SUNONWEALTH ELECTRIC MACHINE INDUSTRY CO., LTD. AND SUBSIDIARIES INFORMATION ON INVESTMENTS IN MAINLAND CHINA

MARCH 31, 2023

(1) Mainland Investment Information:

(Amounts in Thousands of New Taiwan Dollars and Foreign Currencies)

	Main Businesses			Accumulated	Investment Flows		Accumulated Outflow of	Net Income			Carrying	Accumulated Inward
Investee Company	and Products	Total Amount of Paid-in Capital	Method of Investment (Note 1)	Outflow of Investment from Taiwan as of January 1, 2022	Outflow	Inflow	Investment from Taiwan as of March 31, 2022	(Loss) of the Investee Company	Percentage of Ownership	Share of Profit/Loss (Note 2)	Amount as of March 31, 2022	Remittance of Earnings as of March 31, 2022
Sunon Electronic (Kunshan) Co., Ltd.	Manufacturing and selling of fans	NTD1,148,456 (USD 34,431) (Note 6)	(2)	NTD1,136,673 (USD33,880)	-	-	NTD1,136,673 (USD 33,880)	NTD 48,710 (USD 1,602)	100%	NTD 48,710 (USD 1,602) (2).B	NTD1,700,186 (USD 55,835)	NTD 564,783 (USD 19,454)
Sunon Electronic (Foshan) Co., Ltd.	General investment and trade	NTD 148,772 (USD 4,600) (Note 7)	(2)	NTD 298,898 (USD 9,180)	-	-	NTD 298,898 (USD 9,180)	NTD 30,413) (RMB 6,850)	100%	NTD 30,413 (RMB 6,850) (2).C	NTD 312,180 (RMB 70,451)	NTD 751,056 (USD 25,095)
Sunon Electronic (Bei Hai) Co., Ltd.	Manufacturing and selling of new type electronic parts	NTD 293,115 (USD 10,000)	(2)	NTD 293,115 (USD10,000)	-	-	NTD 293,115 (USD 10,000)	NTD 65,376 (RMB 14,725)	100%	NTD 65,376 (RMB 14,725) (2).B	NTD 793,205 (RMB 179,005)	NTD 881,343 (USD 29,294)
Suzhou Shengyixing Heat Transfer Technology Co., Ltd.	Manufacturing and selling of cooling equipment	NTD 32,870 (RMB 7,692)	(3)	- (Note 5)	-	-	- (Note 5)	NTD 395 (RMB 89)	35%	NTD 138 (RMB 31) (2).C	NTD 5,966 (RMB 1,346)	-
Beihai Li Zhun Electronic Co., Ltd.	Manufacturing and selling of fans	NTD 265,311 (RMB 60,000)	(3)	- (Note 8)	-	-	- (Note 8)	NTD 46,555 (RMB 10,486)	100%	NTD 46,555 (RMB 10,486) (2).C	NTD 400,167 (RMB 90,307)	-

Accumulated Investment in Mainland China as of March 31, 2023	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
NTD 1,136,673 (USD 33,880) NTD 298,898 (USD 9,180) NTD 293,115 (USD 10,000)	USD 34,000 USD 10,000 USD 10,000	(Note 4)

Note: Gain and loss on investment are translated using average exchange rates for the three months ended March 31, 2023 (USD:NTD 1:30.402; CYN:NTD 1:4.4398). Additions and ending balance are translated using the exchange rates as at March 31, 2023 (USD:NTD 1:30.45; CYN:NTD 1:4.4312)

Note 1: The investment methods are divided into the following three types:

(1) Investing directly to the Mainland China;
(2) Reinvesting in the Mainland China through third-region companies (please refer to Table 8);
(3) Others.
Note 2: In the current period, the investment profit and loss column is recognized:
(1) If during incorporation with no investment income or loss, it should be indicated;
(2) The basis for recognition of investment gains and losses divided into the following three types, which should be indicated:
A. Audited financial statements by international accounting firms with cooperation relationship with accounting firms in the Republic of China.
B. Audited financial statements by parent company's auditors.
C. Others.

Note 3: The relevant figures in this form should be listed in New Taiwan Dollars.

(2) The Group's major transactions for the nine months ended March 21,2023 directly or indirectly through the third place and the mainland invested company are listed as follows:
1. Financing between the Company and investees in China: Table 1 attached in Note 13.
1. Endorsement and guarantee provided by the Company for investees in China: Table 2 attached in Note 13.
1. Significant transactions between the Company and investees in China: Table 5 attached ~ Table 7 attached in Note 13.

Note 4: Enterprises approved by the Ministry of Economic Affairs as the operational headquarters are not subject to the amount or proportion.

Note 5: It is invested by Sunon Electronic (Kunshan) Co., Ltd.

Note 6:The Board of Directors of Sunon Electronic (Kunshan) Co., Ltd., resolved on March 15, 2021 to increase capital out of retained earnings for USD 431 thousand, and completed registration on March 25, 2021.
Note 7: The Board's of directors of Sunon Electronic (Foshan) Co., Ltd. approved in January 2021 to reduce capital by cash return for USD 13,660 thousand. Issued capital after capital reduction was USD 10,000 thousand. Company registration was completed. The Board of directors of Sunon Electronic (Foshan) Co., Ltd. approved in March 9, 2022 to reduce capital to offset accumulated deficits for USD 5,400 thousand. Issued capital after capital reduction was USD 4,600 thousand. Company registration was completed.
Note 8: It is invested by Sunon Electronic (Foshan) Co., Ltd. and Sunon Electronic (Kunshan) Co., Ltd.

Note 9: The above-mentioned parent-subsidiary transactions have been eliminated.

SUNONWEALTH ELECTRIC MACHINE INDUSTRY CO., LTD. AND SUBSIDIARIES

INFORMATION ON MAJOR SHAREHOLDERS

MARCH 31, 2023

Shares Name of Major Shareholder Number of Shares Percentage of Ownership (%) Fu-Ing Hong Chen 16,309,000 6.49% Yo Yuan Investment Corporation 14,825,000 5.90% Guang Sheng Investment Corporation 12,882,000 5.13%

Note: The information of major shareholders is based on the number of ordinary shares and preferred shares held by shareholders with ownership of 5% or greater, that have been issued without physical registration (included treasury shares) by the Company as of March 31, 2023. The share capital in consolidated financial report may differ from the actual number of shares that have been issued without physical registration because of different preparation basis.

Table 10

(Unit: share)

14.SEGMENT INFORMATION

(1) General information

The Group's reportable segments represent the strategic business units that sell products to different areas, have revenue as well as occur expenses. The chief operating decision-maker manages and supervises the reportable segments separately because each segment needs different product and marketing strategies, and then to allocate resources and assess segment performance. The Company's reportable segments are as follows:

A. Great China: Mainly engaging business in Taiwan and China.
B. Europe and North America: Mainly engaging business in America and Europe.
C. Other: In addition to the above areas.
(2) Measurement Basis

The Group uses profit before income tax as the measurement for segment profit and the basis of performance assessment. The accounting policies of the operating segments and the accounting policies described in Note 4 of the consolidated financial statements are the same.

(3) Segment financial information

								(In thousands)
Three Months Ended March 31, 2023	Great China		Europe and North America		Other Areas		Elimination		Total
Sales from external customers	\$2,738,257			\$337,070	\$	-	\$	-	\$3,075,327
Sales among inter-segment	2,243,151		-		20,046		(2,263,197)		-
Total sales	\$4,981,408		\$337,070		\$20,046		(\$2,263,197)		\$3,075,327
Operating profit (loss)	\$519,299		\$45,846		(\$16,354)		(\$184,698)		\$364,093
Segment assets	\$	-	\$	-	\$	-	\$	-	\$11,413,194
Segment liabilities	\$	-	\$	-	\$	-	\$	-	\$5,915,382

a. Total reporting segment sales should eliminate inter-segment sales of \$2,263,197 thousand.

b. Income tax expense of \$86,104 thousand is not included in segment profit (loss).

(In thousands)

Three Months Ended March 31, 2022	Great China	Europe and North America	Other Areas	Elimination	Total
Sales from external customers	\$2,821,574	\$301,674	\$ -	\$ -	\$3,123,248
Sales among inter-segment	2,490,496	-	- (2,490,496)		-
Total sales	\$5,312,070	\$301,674	\$ -	(\$2,490,496)	\$3,123,248
Operating profit (loss)	\$294,073	\$16,880	(\$6,635)	(\$110,058)	\$194,260
Segment assets	\$ -	\$ -	\$ -	\$ -	\$11,192,827
Segment liabilities	\$ -	\$ -	\$ -	\$ -	\$6,590,020

a. Total reporting segment sales should eliminate inter-segment sales of \$2,490,496 thousand.
b. Income tax expense of \$41,164 thousand is not included in segment profit (loss).
(4) Production information: No disclosure requirement for interim financial statements.
(5) Geographic information: No disclosure requirement for interim financial statements.
(6) Major customer information: No disclosure requirement for interim financial statements.

AI assistant

SUNON — Interim / Quarterly Report 2023

52070_rns_2023-11-02_2e3ce966-fc20-4db4-bc82-552825bdd638.pdf

SUNONWEALTH ELECTRIC MACHINE INDUSTRY CO., LTD. AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED MARCH 31, 2023 AND 2022 AND INDEPENDENT AUDITORS' REVIEW REPORT

CONTENTS

SUNONWEALTH ELECTRIC MACHINE INDUSTRY CO., LTD. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Reviewed Only, Not Audited in Accordance with the Auditing Standards as of March 31, 2023 and 2022)

SUNONWEALTH ELECTRIC MACHINE INDUSTRY CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Reviewed, Not Audited)

SUNONWEALTH ELECTRIC MACHINE INDUSTRY CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Reviewed, Not Audited)

(In Thousands of New Taiwan Dollars)

SUNONWEALTH ELECTRIC MACHINE INDUSTRY CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Reviewed, Not Audited)

(In Thousands of New Taiwan Dollars)

SUNONWEALTH ELECTRIC MACHINE INDUSTRY CO., LTD. AND SUBSIDIARIES

1. GENERAL INFORMATION

2. THE AUTHORIZATION OF CONSOLIDATED FINANCIAL STATEMENTS

3. APPLICATION OF NEW AND AMENDED STANDARDS AND INTERPRETATIONS

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

B. The consolidated entities were as follows:

(4) Financial instruments

A. Financial assets

B. Equity instruments

(6) Income taxes

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

6. CONTENTS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

(3) Notes receivable, net

(4) Accounts receivable, net

(5) Inventories and operating costs

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

(8) Investments accounted for using equity method

(9) Property, plant and equipment

(10) Lease agreement

- noncurrent \$149,981 \$150,425 \$277,653

Ranges of discount rates for lease liabilities are as follows:

(11) Investment properties, net

(15) Provisions - current

(16) Long-term loans and current portion of long-term loans

(17) Pension

(18) Share capital

(19) Capital surplus

(20) Retained earnings and dividend policy

(21)Other equity

(22) Operating revenues

(23) Labor cost, depreciation and amortization

(24)Interest income

(25) Other income

(26) Other gains and losses

(27) Finance costs

(28) Income tax expense

(29)Other comprehensive income (loss)

(29) Earnings per share

7. RELATED PARTY TRANSACTIONS

H. Property transactions: None.

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACT COMMITMENTS

10. SIGNIFICANT DISASTER LOSS: NONE.

11. SIGNIFICANT SUBSEQUENT EVENTS: NONE.

12. OTHERS

b. Price risk

C. Liquidity risk

Further information for lease liabilities with repayment periods was as follows:

Further information for lease liabilities with repayment periods was as follows:

Further information for lease liabilities with repayment periods was as follows:

(4) Fair value information

13. SUPPLEMENTARY DISCLOSURES

SUNONWEALTH ELECTRIC MACHINE INDUSTRY CO., LTD. AND SUBSIDIARIES

LOANS PROVIDED TO OTHER PARTIES

MARCH 31, 2023

SUNONWEALTH ELECTRIC MACHINE INDUSTRY CO., LTD. AND SUBSIDIARIES

ENDORSEMENTS/GUARANTEES PROVIDED

MARCH 31, 2023

SUNONWEALTH ELECTRIC MACHINE INDUSTRY CO., LTD. AND SUBSIDIARIES

MARKETABLE SECURITIES HELD

MARCH 31, 2023

SUNONWEALTH ELECTRIC MACHINE INDUSTRY CO., LTD. AND SUBSIDIARIES

MARKETABLE SECURITIES ACQUIRED AND DISPOSED OF AT COSTS OR PRICES OF AT LEAST

NT\$300 MILLION OR 20% OF THE PAID-IN CAPITAL

MARCH 31, 2023

SUNON Interim / Quarterly Report 2023