SUNON — Interim / Quarterly Report 2024

Nov 11, 2024

SUNONWEALTH ELECTRIC MACHINE INDUSTRY CO., LTD. AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023 AND INDEPENDENT AUDITORS' REVIEW REPORT

CONTENTS

	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, amended standards and interpretations	8-12
	(4) Summary of significant accounting policies	12-15
	(5) Critical accounting judgments, estimates and key sources of	15
	assumption uncertainty
	(6) Contents of significant accounts	15-42
	(7) Related party transactions	42-46
	(8) Pledged assets	46
	(9) Significant contingent liabilities and unrecognized contract	46-47
	commitments
	(10) Significant disaster loss	47
	(11) Significant subsequent events	47
	(12) Others	47-59
	(13) Supplementary disclosures	59-60
	A. Information on significant transactions	61-67
	B. Information on investees	68-69
	C. Information on investments in Mainland China	70-72
	D. Information on Major Shareholders	73
	(14) Segment information	74-75

SUNONWEALTH ELECTRIC MACHINE INDUSTRY CO., LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In Thousands of New Taiwan Dollars)

		September 30, 2024			December 31, 2023		September 30, 2023
Assets	Note	Amount	%	Amount	%	Amount	%
CURRENT ASSETS
Cash and cash equivalents	6(1)	\$3,997,713	28.3	\$4,030,886	31.9	\$3,828,852	29.4
Notes receivable, net	6(3)	15,809	0.1	30,090	0.2	69,383	0.5
Accounts receivable, net	6(4)	4,121,297	29.2	3,049,309	24.2	3,440,443	26.4
Other receivables		116,808	0.9	100,770	0.8	101,804	0.8
Current tax assets		16,299	0.1	13,151	0.1	9,780	0.1
Inventories	6(5)	2,090,796	14.8	2,052,438	16.3	2,107,387	16.2
Prepayments		97,221	0.7	82,655	0.7	108,018	0.9
Other financial assets - current	6(6)	225,833	1.6	216,761	1.7	224,728	1.7
Total current assets		10,681,776	75.7	9,576,060	75.9	9,890,395	76.0
NONCURRENT ASSETS
Financial assets at fair value through profit or	6(2)	169,328	1.2	-	-	544	-
loss - noncurrent
Financial assets at fair value through other	6(7)	29,406	0.2	27,231	0.2	25,877	0.2
comprehensive income or loss - noncurrent
Investments accounted for using equity method	6(8)	17,591	0.1	20,968	0.2	21,579	0.2
Property, plant and equipment	6(9)	2,362,738	16.7	2,171,464	17.2	2,220,972	17.0
Right-of-use assets	6(10)	588,875	4.2	590,714	4.7	629,120	4.8
Investment properties, net	6(11)	84,463	0.6	84,738	0.7	84,829	0.6
Intangible assets	6(12)	54,326	0.4	23,956	0.2	23,745	0.2
Deferred income tax assets		96,448	0.7	94,334	0.7	90,083	0.7
Refundable deposits		19,172	0.1	20,961	0.2	23,367	0.2
Other noncurrent assets - others		9,208	0.1	4,305	-	8,425	0.1
Total noncurrent assets		3,431,555	24.3	3,038,671	24.1	3,128,541	24.0
TOTAL ASSESTS		\$14,113,331	100.0	\$12,614,731	100.0	\$13,018,936	100.0
Liabilities and Equity
CURRENT LIABLITIES
Short-term loans	6(13)	\$1,079,486	7.7	\$457,581	3.6	\$938,014	7.2
Contract liabilities - current	6(23)	139,186	1.0	109,540	0.9	107,863	0.8
Notes payables		33,719	0.2	31,067	0.2	36,233	0.3
Accounts payable		3,170,529	22.5	2,737,012	21.7	2,770,819	21.3
Other payables	6(14)	942,851	6.7	942,278	7.5	853,001	6.6
Current tax liabilities		112,176	0.8	124,712	1.0	188,495	1.5
Provisions - current	6(15)	61,010	0.4	52,467	0.4	52,251	0.4
Lease liabilities - current	6(10)	75,220	0.5	82,727	0.7	81,046	0.6
Advance receipts		-	-	571	-	-	-
Long-term liabilities-current portion	6(17)	96,367	0.7	182,775	1.4	121,872	0.9
Total current liabilities		5,710,544	40.5	4,720,730	37.4	5,149,594	39.6

		September 30, 2024		December 31, 2023		September 30, 2023
Liabilities and Equity	Note	Amount	%	Amount	%	Amount	%
NONCURRENT LIABILITIES
Bonds payable	6(16)	-	-	-	-	46,258	0.4
Long-term loans	6(17)	505,720	3.6	212,931	1.7	280,255	2.2
Deferred income tax liabilities		330,029	2.3	286,730	2.3	291,660	2.2
Lease liabilities - noncurrent	6(10)	89,363	0.6	146,042	1.2	174,896	1.3
Net defined benefit liabilities - noncurrent	6(18)	23,575	0.2	28,731	0.2	30,593	0.2
Guarantee deposits		2,271	-	839	-	854	-
Total noncurrent liabilities		950,958	6.7	675,273	5.4	824,516	6.3
Total Liabilities		\$6,661,502	47.2	\$5,396,003	42.8	\$5,974,110	45.9
EQUITY ATTRIBUTABLE TO OWNERS OF
THE PARENT
Share capital	6(19)
Ordinary shares		\$2,734,437	19.4	\$2,725,243	21.6	\$2,509,297	19.3
Bond conversion entitlement certificates		-	-	\$9,194	0.1	215,946	1.7
Capital surplus	6(20)	1,518,788	10.8	1,518,788	12.0	1,482,135	11.4
Retained earnings	6(21)
Legal reserve		1,129,127	8.0	995,720	7.9	995,720	7.6
Special reserve		300,185	2.1	257,757	2.0	257,757	2.0
Unappropriated earnings		1,934,016	13.7	2,012,211	16.0	1,773,677	13.6
Other equity	6(22)	(164,724)	(1.2)	(300,185)	(2.4)	(189,706)	(1.5)
Total equity attributable to owners of the parent		7,451,829	52.8	7,218,728	57.2	7,044,826	54.1
NON-CONTROLLING INTERESTS		-	-	-	-	-	-
Total equity		7,451,829	52.8	7,218,728	57.2	7,044,826	54.1
TOTAL LIABILITIES AND EQUITY		\$14,113,331	100.0	\$12,614,731	100.0	\$13,018,936	100.0

SUNONWEALTH ELECTRIC MACHINE INDUSTRY CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

				Three Months Ended September 30				Nine Months Ended September 30
		2024		2023		2024		2023
	Note	Amount	%	Amount	%	Amount	%	Amount	%
OPERATING REVENUES	6(23)	\$4,030,569	100.0	\$3,293,604	100.0	\$10,767,527	100.0	\$9,648,751	100.0
OPERATING COSTS	6(5)	(2,882,097)	(71.5)	(2,339,480)	(71.0)	(7,780,655)	(72.3)	(6,957,851)	(72.1)
GROSS PROFIT		1,148,472	28.5	954,124	29.0	2,986,872	27.7	2,690,900	27.9
OPERATING EXPENSES
Sales and marketing expenses		(235,306)	(5.8)	(158,798)	(4.8)	(622,017)	(5.8)	(446,360)	(4.6)
General and administrative expenses		(169,177)	(4.2)	(188,081)	(5.7)	(515,539)	(4.8)	(492,757)	(5.1)
Research and development expenses		(221,134)	(5.5)	(204,004)	(6.2)	(630,056)	(5.8)	(593,403)	(6.2)
Expected credit gain (loss)	6(4)	(1,002)	-	911	-	(2,724)	-	580	-
Total operating expenses		(626,619)	(15.5)	(549,972)	(16.7)	(1,770,336)	(16.4)	(1,531,940)	(15.9)
NET OPERATING INCOME (LOSS)		521,853	13.0	404,152	12.3	1,216,536	11.3	1,158,960	12.0
NON-OPERATING INCOME AND EXPENSES
Interest income	6(25)	33,414	0.8	28,268	0.9	103,692	1.0	60,850	0.6
Other income	6(26)	31,984	0.8	33,878	0.9	119,789	1.1	93,983	1.0
Other gains and losses	6(27)	(122,838)	(3.0)	66,910	2.0	13,514	0.1	148,002	1.6
Finance costs Share of loss of associates and joint ventures	6(28) 6(8)	(12,202) (521)	(0.3) -	(13,030) 1,827	(0.4) 0.1	(26,607) (6,500)	(0.2) (0.1)	(37,783) 1,316	(0.4) -
accounted for using equity method
Total non-operating income and expenses		(70,163)	(1.7)	117,853	3.5	203,888	1.9	266,368	2.8
INCOME BEFORE INCOME TAX		451,690	11.3	522,005	15.8	1,420,424	13.2	1,425,328	14.8
INCOME TAX EXPENSE	6(29)	(102,594)	(2.5)	(136,047)	(4.1)	(365,731)	(3.4)	(329,791)	(3.4)
NET INCOME		349,096	8.8	385,958	11.7	1,054,693	9.8	1,095,537	11.4
OTHER COMPREHENSIVE INCOME (LOSS) Items that may be reclassified subsequently to profit or loss:	6(30)
Unrealized gain (loss) on investments in equity instruments at fair value through other comprehensive income		1,145	-	593	-	2,085	-	3,630	-
Exchange differences on translation of foreign operations		222	-	129,141	3.9	166,719	1.6	80,526	0.9
Income tax (expense) benefit related to items that		(44)	-	(25,828)	(0.7)	(33,343)	(0.3)	(16,105)	(0.2)
may be reclassified subsequently to profit or loss
Total other comprehensive income (loss) , net of income tax		1,323	-	103,906	3.2	135,461	1.3	68,051	0.7
TOTAL COMPREHENSIVE INCOME		\$350,419	8.8	\$489,864	14.9	\$1,190,154	11.1	\$1,163,588	12.1
NET INCOME ATTRIBUTABLE TO:
Owners of the parent		\$349,096	8.8	\$385,958	11.7	\$1,054,693	9.8	\$1,095,537	11.4
Non-controlling interests		-	-	-	-	-	-	-	-
Total		\$349,096	8.8	\$385,958	11.7	\$1,054,693	9.8	\$1,095,537	11.4
TOTAL COMPREHENSIVE INCOME
ATTRIBUTABLE TO:
Owners of the parent Non-controlling interests		\$350,419 -	8.8 -	\$489,864 -	14.9 -	\$1,190,154 -	11.1 -	\$1,163,588 -	12.1 -
Total		\$350,419	8.8	\$489,864	14.9	\$1,190,154	11.1	\$1,163,588	12.1
EARNINGS PER SHARE
Basic	6(31)	\$1.28		\$1.49		\$3.86		\$4.32
Diluted	6(31)	\$1.28		\$1.45		\$3.86		\$4.23

SUNONWEALTH ELECTRIC MACHINE INDUSTRY CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(In Thousands of New Taiwan Dollars)

	ity A ttrib utab le to Sha reho lder s of the Equ Par ent
	Cap ital Stoc k		aine d E arni Ret ngs		Oth Equ ity ers Exc han ge Dif fere nce s on	Unr eali zed Gai n (L oss) Fin ial on anc	Tot al E quit y Attr ibut able to
		Cer tific of B ond ate				Un iate d app ropr	Tra nsla ting for eign	Ass at F air V alue Th gh ets rou	Sha reho lder s of	Non trol ling -con	Tot al
	Odi Sha nary re	Ex cha Rig hts nge	Cap ital Surp lus	Leg al R eser ve	Spe cial Re serv e	Ear ning s	Ope rati ons	Oth er C rehe nsiv e in omp com e	the Par ent	Inte rest s	Eq uity
BA LAN CE AT JAN UA RY 1, 2 023	\$2,5 09,2 97	- \$	\$36 6,90 3	\$88 5,79 9	\$29 5,35 8	\$1,4 02,8 77	(\$2 57,7 57)	\$ -	\$5,2 02,4 77	- \$	\$5,2 02,4 77
App iatio nd d istri buti of p rior r's ings ropr ns a ons yea earn :
al re Leg serv e	-	-	-	109 ,921	-	(109 ) ,921	-	-	-	-	-
h di vide nds - \$ shar Cas 2.6 per e	-	-	-	-	-	(652 ) ,417	-	-	(652 ) ,417	-	(652 ) ,417
Spe cial res erve	-	-	-	-	(37, 601 )	37,6 01	-	-	-	-	-
he i of ible bon ds Due to t vert ate ssua nce con cor por	-	-	257 ,347	-	-	-	-	-	257 ,347	-	257 ,347
, the ity c nt it ized ock ions - st opt equ omp one ems are rec ogn
Net inc for the nin onth ded Sep ber 30, 202 3 tem ome e m s en	-	-	-	-	-	1,09 5,53 7	-	-	1,09 5,53 7	-	1,09 5,53 7
Oth rehe nsiv e in e (lo ss) for the nine nths er c omp com mo ded ber f in 202	-	-	-	-	-	-	64,4 21	3,63 0	68,0 51	-	68,0 51
Sep 30, 3, n tem et o e ta en com x al c rehe nsiv e in e fo r th e ni onth							21	0	8
Tot omp com ne m s	-	-	-	-	-	1,09 5,53 7	64,4	3,63	1,16 3,58	-	1,16 3,58 8
ded ber f in Sep 30, 202 3, n tem et o e ta en com x
ible bon d co rsio Con vert ate cor por nve n	-	,946 215	,885 857	-	-	-	-	-	1,07 3,83 1	-	1,07 3,83 1
(de se) in n ollin g in Incr ontr tere sts ease crea on-c	-	-	-	-	-	-	-	-	-	-	-
BA LAN CE AT SEP TEM BER 30, 202 3	\$2,5 09,2 97	\$21 5,94 6	\$1,4 82,1 35	\$99 5,72 0	\$25 7,75 7	\$1,7 73,6 77	(\$1 93,3 36)	\$3,6 30	\$7,0 44,8 26	- \$	\$7,0 44,8 26
BA LAN CE AT JAN UA RY 1, 2 024	\$2,7 25,2 43	\$9, 194	\$1,5 18,7 88	\$99 5,72 0	\$25 7,75 7	\$2,0 12,2 11	(\$3 05,2 48)	\$5,0 63	\$7,2 18,7 28	- \$	\$7,2 18,7 28
App iatio nd d istri buti of p rior r's ings ropr ns a ons yea earn :
al re Leg serv e	-	-	-	133 ,407	-	(133 ) ,407	-	-	-	-	-
cial Spe res erve h di vide nds shar Cas 3.5	-	-	-	-	42,4 28	(42 ) ,428	-	-	-	-	-
- \$ per e he i of ible bon ds Due	-	-	-	-	-	(957 ) ,053	-	-	(957 ) ,053	-	(957 ) ,053
to t vert ate ssua nce con cor por , the nt it ized ock ions - st	-	-	-	-	-	-	-	-	-	-	-
ity c opt equ omp one ems are rec ogn Net inc for the nin onth ded ber 202 4 tem						3			3		3
Sep 30, ome e m s en Oth rehe nsiv e in for the nine nths	-	-	-	-	-	1,05 4,69	- 133	- 5	1,05 4,69	-	1,05 4,69 135
e (lo ss) er c omp com mo ded Sep ber 30, 202 4, n f in tem et o e ta en com x	-	-	-	-	-	-	,376	2,08	135 ,461	-	,461
al c rehe nsiv e in r th e ni onth Tot e fo omp com ne m s	-	-	-	-	-	1,05 4,69 3	133 ,376	2,08 5	4 1,19 0,15	-	1,19 0,15 4
ded ber f in Sep 30, 202 4, n tem et o e ta en com x
d co rsio title rtifi Bon t ce cate nve n en men	9,19 4	(9,1 94)	-	-	-	-	-	-	-	-	-
(de se) in n ollin g in Incr ontr tere sts ease crea on-c	-	-	-	-	-	-	-	-	-	-	-
BA LAN CE AT SEP TEM BER 30, 202 4	\$2,7 34,4 37	- \$	\$1,5 18,7 88	\$1, 129 ,127	\$30 0,18 5	\$1,9 34,0 16	(\$1 71,8 72)	\$7, 148	\$7,4 51,8 29	- \$	\$7,4 51,8 29

SUNONWEALTH ELECTRIC MACHINE INDUSTRY CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)

	Nine Months Ended Sepyember 30
	2024	2023
CASH FLOWS FROM OPERATING ACTIVITIES
Income before income tax	\$1,420,424	\$1,425,328
Adjustments :
Adjustments to reconcile profit (loss)
Depreciation expense	308,659	299,267
Amortization expense	63,206	105,062
Expected credit loss (gain)	2,724	(580)
Net loss (gain) on financial assets and liabilities at fair value through profit or	(9,078)	(8,299)
loss
Interest expense	26,607	37,783
Interest income	(103,692)	(60,850)
Share of loss (gain) of associates and joint ventures	6,500	(1,316)
accounted for using equity method
Loss (gain) on disposal and retirement of property, plant and equipment	9,869	2,054
Transfer of property, plant and equipment to expenses	179	2,169
Loss (gain) on disposal of other assets	(39)	27,996
Gain on disposal of investments	-	(1,801)
Others	-	14
Total adjustments to reconcile profit and loss	304,935	401,499
Net changes in operating assets and liabilities
Decerase (increase) in financial assets mandatorily classified as	-	213,615
at fair value through profit or loss
Decerase (increase) in notes receivable	14,281	(39,288)
Decrease (increase) in accounts receivable	(1,074,814)	(55,857)
Decrease (increase) in other receivables	(11,032)	41,839
Decrease (increase) in inventories	(41,468)	541,604
Decrease (increase) in prepayments	(45,695)	(21,647)
Decrease (increase) in other financial assets	(9,072)	(224,728)
Total changes in operating assets	(1,167,800)	455,538
Net changes in operating liabilities
Increase (decrease) in contract liabilities	29,646	(68,301)
Increase (decrease) in notes payable	2,652	(100,122)
Increase (decrease) in accounts payable	433,517	(408,469)
Increase (decrease) in other payables	(21,340)	(141,873)
Increase (decrease) in provisions	7,155	(3,153)
Increase (decrease) in advance receipts	(571)	-
Increase (decrease) in net defined benefit liabilities	(5,156)	(5,074)
Total changes in operating liabilities	445,903	(726,992)

	Nine Months Ended Sepyember 30
	2024	2023
Total net changes in operating assets and liabilities	(721,897)	(271,454)
Total adjustments	(416,962)	130,045
Cash generated from operations	1,003,462	1,555,373
Interest received	98,686	44,656
Interest paid	(24,003)	(33,153)
Income tax paid	(373,573)	(250,979)
Net cash generated from operating activities	704,572	1,315,897
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of financial assets at fair value through other comprehensive income or loss	-	(22,247)
Acquisition of financial assets at fair value through profit or loss	(160,250)	-
Acquisition of investments accounted for using equity method	(2,279)	(14,327)
Acquisition of property, plant and equipment	(378,795)	(241,871)
Proceeds from disposal of property, plant and equipment	-	67
Increase in refundable deposits	-	(3,594)
Decrease in refundable deposits	1,789	-
Decrease in other receivables	-	13,229
Acquisition of intangible assets	(52,149)	(12,719)
Increase in other noncurrent assets	(11,152)	(14,546)
Net cash used in investing activities	(602,836)	(296,008)
CASH FLOWS FROM FINANCING ACTIVITIES
Increase in short-term loans	621,905	-
Decrease in short-term loans	-	(349,502)
Issuance of corporate bonds	-	1,381,273
Proceeds from long-term borrowings	206,381	-
Repayments of long-term borrowings	-	(4,946)
Increase in guarantee deposits Decrease in guarantee deposits	1,432 -	- (2,175)
Repayments of lease principal	(111,775)	(61,896)
Cash dividends paid	(957,053)	(652,417)
Net cash generated from (used in) financing activities	(239,110)	310,337
EFFECT OF EXCHANGE RATE CHANGES ON	104,201	41,289
CASH AND CASH EQUIVALENTS
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(33,173)	1,371,515
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	4,030,886	2,457,337
CASH AND CASH EQUIVALENTS, END OF PERIOD	\$3,997,713	\$3,828,852

SUNONWEALTH ELECTRIC MACHINE INDUSTRY CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024 and 2023 (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 is the Group's ultimate parent company.

The consolidate financial statements are presented in the Group'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 November 11, 2024.

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 2024 are as follows:

	Effective Date Announced
New IFRSs	by IASB
Amendments to IFRS 16 "Lease Liability in A Sale and	January 1, 2024 (Note )
LeaseBack "
Amendments to IAS 1 "Classification of Liabilities as	January 1, 2024 (Note )
Current or Non-current,"
Amendment to IAS 1 "Non-current Liabilities with	January 1, 2024 (Note )
Covenants"
Amendment to IAS 7 and IFRS 7 "Supplier Finance	January 1, 2024 (Note )
Arrangements"

Note: This amendment will apply to annual reporting periods beginning after January 1,

^2024.

A. Amendments to IFRS 16"Lease liability in a sale and leaseback"

This amendment clarifies that for a sale and leaseback transaction, if the transfer of the asset is treated as a sale in accordance with IFRS 15, the liabilities incurred by the seller and lessee due to the leaseback should be treated in accordance with IFRS 16 regarding lease liabilities; however, if variable lease payments that do not depend on an index or rate are involved, the seller-lessee should still determine and recognize the lease liability arising from such variable payments in a manner that does not recognize gains and losses related to the retained right of use. The difference between the subsequent actual lease payment amount and the reduced carrying amount of the lease liability is recognized in profit or loss.

B. Amendments to IAS 1 "Classification of Liabilities as Current or Noncurrent"

The amendments clarify that when the Company determines whether a liability is classified as noncurrent, the Company should assess whether the Company has the right to defer the settlement for at least twelve months after the reporting period. If the Company has that right on the end of reporting period, that liability must be classified as non-current regardless whether the Company expects whether to exercise the right or not. If the Company must follow certain conditions to have the right to defer the settlement of a liability, the Company must have followed those conditions on the end of reporting period in order to have that right even if the lender tests the Company's compliance on a later date.

The aforementioned settlement means transferring cash, other economic resources or the Company's equity instruments to the counter-party to extinguish the liability. If the terms of the liability give the counterparty an option to extinguish the liability by the Company's equity instruments, and this option is recognized separately in equity in accordance with IAS 32 "Financial Instruments: Presentation" then the classification of the liability will not be affected.

C. Amendment to IAS 1 "Non-current Liabilities with Covenants"

This amendment further clarifies that only contractual terms that are required to be complied with before the end of the reporting period will affect the classification of the liability at that date. The contractual terms that required to be complied with within 12 months after the reporting period do not affect the classification of liabilities at the reporting date. However, for liabilities classified as non-current and must be repaid within 12 months after the reporting period due to potential non-compliance, the relevant facts and circumstances should be disclosed in the notes.

D. Amendments to IAS 7 and IFRS 7 "Supplier finance arrangements "

Supplier financing arrangements involve one or more financing providers making payments to suppliers on behalf of Company, and Company agrees to repay the financing providers on the payment date agreed with the suppliers or a later date. The amendments to IAS 7 require Company to disclose information on its supplier financing arrangements to enable users of financial statements to assess the impact of these arrangements on Company's liabilities, cash flows and exposure to liquidity. The amendments to IFRS 7 include into its application guidance that when disclosing how Company manages the liquidity risk of its financial liabilities, it may also consider whether it has obtained or can obtain financing facilities through supplier financing arrangements, and whether these arrangements may cause concentration of liquidity risk.

The Group has evaluated the aforementioned standards and interpretations, and there is 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:

	Effective Date Announced
New IFRSs	by IASB
Amendments to IAS 21 "Lack of Exchangeability"	January 1, 2025

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

(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 9 "Financial Instruments" and IFRS 7	January 1, 2026
"Financial Instruments: Disclosures" - Amendments to the
Classification and Measurement of Financial Instruments
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"
IFRS 18 "Presentation and Disclosure in Financial	January 1, 2027
Statements"
IFRS 19 "Disclosure Initiative - Subsidiaries without	January 1, 2027
Public Accountability: Disclosures"
Annual Improvements to IFRS Accounting Standards-	January 1, 2026
Volume 11

Except as stated below, The Group has assessed that the above standards and interpretations have no significant impact on the Group's financial position and financial performance.

A.The Amendments to IFRS 9 "Financial Instruments" and IFRS 7 "Financial Instruments: Disclosures" - Amendments to the Classification and Measurement of Financial Instruments include:

• (A) Clarify that a financial liability is derecognized on the settlement date and describe the accounting treatment for a financial liability (or part of it) that will be settled in cash using an electronic payment system to be discharged before the settlement date if, and only if, the entity has initiated a payment instruction that has resulted in:
• a. The entity having no practical ability to withdraw, stop or cancel the payment instruction
• b. The entity having no practical ability to access the cash to be used for settlement as a result of the payment instruction
• c. The settlement risk associated with the electronic payment system being insignificant
• (B) Clarify and add to the application guidance on how to assess whether contractual cash flows of a financial asset are solely payments of principal and interest (SPPI) on the principal amount outstanding. The amendments further address the assessment on the contractual cash flow that could change subject to a contingent event, for example, interests linked to an ESG metric, as well as the treatment of non-recourse assets and contractually linked instruments.
• (C) Require additional disclosures for financial instruments with contractual terms that that could change contractual cash flows of a contingent event (including those that are ESG-linked). Disclosures include a qualitative description of the nature of the contingent event, quantitative information about the possible changes to contractual cash flows as well as the gross carrying amount of financial assets and the amortized cost of financial liabilities subject to those contractual terms.
• (D) Require additional disclosures for equity instruments classified at fair value through other comprehensive income(FVTOCI). It is required to disclose the fair value gain or loss presented in OCI during the reporting period, showing separately the fair value gain or loss that relates to investments derecognized in the reporting period and the fair value gain or loss that relates to investments held at the end of the reporting period. If an entity derecognizes investments in equity instruments measured at FVTOCI during the reporting period, it is now required, under the amendments, to disclose any transfers of the cumulative gain or loss within equity during the reporting period related to the investments derecognized during that reporting period. Also, it is no longer required to disclose the fair value of each equity instruments designated at FVTOCI, this information can be provided by class of instruments.
• B.Amendments to IFRS 10 and IAS 28 "Sale or Contribution of Assets between an Investor and its Associate or Joint Venture" The amendment resolve the difference between IFRS10 and IAS28, Transactions in

which investors sell (invest) assets to their affiliated companies or joint ventures.

Depending on the nature of the trading assets, all or part of the disposal gains and losses will be recognized. When the assets traded are in line with the "business", all gains and losses from the disposal will be recognized; when the assets traded are not in line with the "business", only part of the gains and losses from the disposal within the scope of the interests of the non-related investors in the related enterprises or joint ventures can be recognized.

C.IFRS 18 "Presentation and Disclosure in Financial Statements"

IFRS 18 will replace IAS1 and update the structure of the consolidated income statement. Added new disclosures on management performance measurement, and strengthened the aggregation and segmentation principles applied to the main financial statements and notes.

D.IFRS 19 "Disclosure Initiative - Subsidiaries without Public Accountability: Disclosures"

IFRS 19 permits eligible subsidiaries to apply reduced disclosure requirements instead of the disclosure requirements in other IFRS Accounting Standards.

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.

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, 2023. 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, 2023.
• (2) Basis of preparation

• A. Except for the following items, the 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 conformity 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. The basis for the 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	September 30, 2024	December 31, 2023	September 30, 2023
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 Philippines Corp.	Manufacturing and selling of fans Real estate development and investment	99.99% 99.99%	99.99% 99.99%	99.99% 99.99%
2.BVI Sunon International Limited
Sunon Electronic	General investment	100.00%	100.00%	100.00%
(Foshan) Co., Ltd.	and trade
Sunon Electronic (Bei Hai) Co., Ltd.	Manufacturing and selling of new type electronic parts	100.00%	100.00%	100.00%
3.Sunon Electronic (Foshan) Co., Ltd.
Beihai Li Zhun Electronics Co., Ltd.	Manufacturing and selling of fans	66.67%	66.67%	66.67%
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%	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. 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) 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.

(5) 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 were applied in the preparation of the consolidated financial statements for the year ended December 31, 2023.

6. CONTENTS OF SIGNIFICANT ACCOUNTS

Except for the following, please refer to Note 6 to the consolidated financial statements for the year ended December 31, 2023.

Item	September 30, 2024	December 31, 2023	September 30, 2023
Cash on hand	\$962	\$636	\$550
Cash in banks	3,916,800	4,030,250	3,828,302
Cash equivalent Short term notes with original maturities within three months	79,951	-,	-
Total	\$3,997,713	\$4,030,886	\$3,828,852

(1) Cash and cash equivalents

• A.The Group deposits its cash and cash equivalents at several financial institutions that have high credit quality to diversify its risk. Therefore, the Group considers its cash and cash equivalents to have low credit risk.
• B. The Group has no cash and cash equivalents pledged to others.

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

Item	September 30, 2024	December 31, 2023	September 30, 2023
Non-derivative financial assets	- noncurrent
Convertible bonds	\$169,328	\$ -	\$ -
Redemption and put options of convertible bonds	\$ -	\$ -	\$544

A. The Group recognized net gain (loss) of financial assets at fair value through profit or loss of \$199 thousand, \$3,936 thousand, \$9,078 thousand and \$10,100 thousand for the three months and nine months ended September 30, 2024 and 2023, respectively.

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

(3) Notes receivable, net

Item	September 30, 2024	December 31, 2023	September 30, 2023
At amortized cost
Notes receivable	\$15,833	\$30,114	\$69,407
Less: Loss allowance	(24)	(24)	(24)
Net	\$15,809	\$30,090	\$69,383

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

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

(4) Accounts receivable, net

Item	September 30, 2024	December 31, 2023	September 30, 2023
At amortized cost
Accounts receivable	\$4,132,570	\$3,057,756	\$3,448,896
Less: Loss allowance	(11,273)	(8,447)	(8,453)
Net	\$4,121,297	\$3,049,309	\$3,440,443

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 has 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 preparation matrix:

September 30, 2024	Expected Credit Loss Rate	Gross Carrying Amount	Loss Allowance (Lifetime ECL)	Amortized Cost
No past due	0.05%-5%	\$4,170,344	(\$9,542)	\$4,160,802
Past due within 30 days	0.05%-5%	78,216	(1,621)	76,595
Past due 31-90 days	0.05%-5%	15,630	(39)	15,591
Past due over 91 days	0.05%-5%	1,021	(95)	926
Total		\$4,265,211	(\$11,297)	\$4,253,914

	Expected
	Credit Loss	Gross Carrying	Loss Allowance
December 31, 2023	Rate	Amount	(Lifetime ECL)	Amortized Cost
No past due	0.05%-5%	\$3,042,607	(\$7,899)	\$3,034,708
Past due within 30 days	0.05%-5%	139,175	(445)	138,730
Past due 31-90 days	0.05%-5%	6,436	(35)	6,401
Past due over 91 days	0.05%-5%	422	(92)	330
Total		\$3,188,640	(\$8,471)	\$3,180,169

September 30, 2023	Expected Credit Loss Rate	Gross Carrying Amount	Loss Allowance (Lifetime ECL)	Amortized Cost
No past due	0.05%-5%	\$3,519,711	(\$8,024)	\$3,511,687
Past due within 30 days	0.05%-5%	51,206	(291)	50,915
Past due 31-90 days	0.05%-5%	39,420	(63)	39,357
Past due over 91 days	0.05%-5%	9,770	(99)	9,671
Total		\$3,620,107	(\$8,477)	\$3,611,630

	Nine Months Ended September	30
	2024	2023
Beginning balance	\$8,471	\$9,006
Add: Provision for impairment	2,724	-
Less: Reversal of impairment losses	-	(580)
Less: Amounts written off	-	-
Foreign exchange differences gains and losses	102	(51)
Ending balance	\$11,297	\$8,477

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

The above provision has already taken into consideration of collateral or other credit enhancement. The other credit enhancement possessed by above receivables was \$1,754,055 thousand, \$1,202,827 thousand and \$1,274,425 thousand as of September 30, 2024, December 31, 2023 and September 30, 2023, 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 both \$0 thousand for the nine months ended September 30, 2024 and 2023.

G.Please refer to Note 12 for the information on related credit risk management and valuation method.

Item	September 30, 2024	December 31, 2023	September 30, 2023
Raw materials	\$701,402	\$671,116	\$696,729
Supplies	26,374	21,993	29,535
Work in process	258,364	249,583	294,777
Finished goods	1,104,656	1,109,746	1,086,346
Total	\$2,090,796	\$2,052,438	\$2,107,387

(5) Inventories and operating costs

Ended September 30
2024	2023
\$2,838,502	\$2,319,257
22,022	23,853
19,523	(37,706)
2,050	34,076
\$2,882,097	\$2,339,480
	Three Months

A. The related inventory gains (losses) recognized as current operating cost were as follows:

	Nine Months Ended September 30
Item	2024	2023
Cost of goods sold	\$7,649,093	\$6,904,948
Unallocated overheads and labor cost	65,536	66,371
Gain (loss) on inventory valuation	35,773	(69,694)
Others	30,253	56,226
Total	\$7,780,655	\$6,957,851

• B. The Group recognized inventory valuation loss (gain) of \$19,523 thousand, (\$37,706) thousand, \$35,773 thousand and (\$69,694) thousand for the three months and nine months ended September 30, 2024 and 2023, 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 has no inventories pledged to others.

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

Item	September 30, 2024	December 31, 2023	September 30, 2023
Time deposits with maturities of more than three months	\$225,833	\$216,761	\$224,728

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

noncurrent

Item	September 30, 2024	December 31, 2023	September 30, 2023
Equity instruments
Domestic listed stocks	\$29,406	\$27,231	\$25,877

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	September 30, 2024	December 31, 2023	September 30, 2023
Associates:
Associates without significance	\$17,591	\$20,968	\$21,579

A. Associates:

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

	Three Months Ended September	30
	2024	2023
Share of:
Net loss	(\$521)	\$1,827
Other comprehensive income (loss) (net after tax)	-	-
Total comprehensive loss	(\$521)	\$1,827
	Nine Months Ended September	30
	2024	2023
Share of:
Net loss	(\$6,500)	\$1,316
Other comprehensive income (loss) (net after tax)	-	-
Total comprehensive loss	(\$6,500)	\$1,316

B. For the nine months ended September 30, 2024, 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	September 30, 2024	December 31, 2023	September 30, 2023
Land	\$820,335	\$820,335	\$820,335
Buildings	568,350	472,542	479,967
Machinery and equipment	1,249,188	1,113,619	1,125,107
Miscellaneous equipment	713,351	656,536	638,696
Leasehold improvements	356,467	328,876	334,758
Equipment to be inspected and construction in progress	111,960	54,465	75,456
Total cost	\$3,819,651	\$3,446,373	\$3,474,319
Less: Accumulated depreciation	(1,456,913)	(1,274,909)	(1,253,347)
and impairment
Net	\$2,362,738	\$2,171,464	\$2,220,972

(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, 2024	\$820,335	\$472,542	\$1,113,619	\$656,536	\$328,876	\$54,465	\$3,446,373
Additions	-	543	72,574	49,762	6,822	268,579	398,280
Disposals	-	(112)	(70,800)	(50,101)	-	-	(121,013)
Reclassification	-	84,592	86,135	33,004	8,974	(212,705)	-
Transfer to expenses	-	-	-	-	-	(179)	(179)
Transfer to prepayments	-	-	-	-	-	(77)	(77)
Transfer to other noncurrent assets	-	-	-	-	-	(530)	(530)
Effect of foreign currency exchange differences	-	10,785	47,660	24,150	11,795	2,407	96,797
Balance at September 30, 2024	\$820,335	\$568,350	\$1,249,188	\$713,351	\$356,467	\$111,960	\$ 3,819,651
Accumulated Depreciation and Impairment
Balance at January 1, 2024	\$ -	\$267,581	\$448,774	\$363,847	\$194,707	\$ -	\$1,274,909
Depreciation expense	-	8,988	139,341	63,575	30,829	-	242,733
Disposals	-	(112)	(61,839)	(49,193)	-	-	(111,144)
Reclassification	-	-	(584)	584	-	-	-
Effect of foreign currency exchange differences	-	6,610	23,508	13,791	6,506	-	50,415
Balance at September 30, 2024	\$ -	\$283,067	\$549,200	\$392,604	\$232,042	\$ -	\$1,456,913

	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	-	572	18,957	41,049	3,645	143,053	207,276
Disposals	-	-	(27,792)	(16,517)	-	-	(44,309)
Reclassification	-	199	10,955	124,576	21,882	(157,612)	-
Transfer to expenses	-	-	-	-	-	(2,169)	(2,169)
Transfer to prepayments	-	-	-	-	-	(220)	(220)
Return and discount	-	-	-	-	(905)	(45,320)	(46,225)
Effect of foreign currency exchange differences	-	4,985	19,624	10,590	5,529	2,127	42,855
Balance at September 30, 2023	\$820,335	\$479,967	\$1,125,107	\$638,696	\$334,758	\$75,456	\$3,474,319
Accumulated Depreciation and Impairment
Balance at January 1, 2023	\$ -	\$256,366	\$369,659	\$255,384	\$162,288	\$ -	\$1,043,697
Depreciation expense	-	11,096	144,214	47,337	25,932	-	228,579
Disposals	-	-	(25,682)	(16,506)	-	-	(42,188)
Reclassification	-	-	(64,599)	64,599	-	-	-
Effect of foreign currency exchange differences	-	3,078	10,864	6,460	2,857	-	23,259
Balance at September 30, 2023	\$ -	\$270,540	\$434,456	\$357,274	\$191,077	\$ -	\$1,253,347

• A. The information on interest capitalization: None.
• B. The Group did not assess the impairment because there is no sign of impairment for the nine months ended September 30, 2024.
• 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:

	Nine Months Ended September 30
Item	2024	2023
Acquisition of property, plant and equipment	\$398,280	\$161,051
Decrease (increase) in equipment payable	(19,485)	80,820
Cash paid for acquisition of property, plant and equipment	\$378,795	\$241,871

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

September 30, 2024	December 31, 2023	September 30, 2023
\$460,414	\$397,081	\$407,288
384,891	449,162	487,045
31,837	26,456	30,734
\$877,142	\$872,699	\$925,067
(288,267)	(281,985)	(295,947)
\$588,875	\$590,714	\$629,120

	Land and
Land-use Right	Buildings	Other Equipment	Total
\$397,081	\$449,162	\$26,456	\$872,699
53,063,	15,046	7,305	75,414
-	(27,825)	-	(27,825)
-	(66,163)	(2,539)	(68,702)
10,270	14,671	615	25,556
\$460,414	\$384,891	\$31,837	\$877,142
\$19,815	\$247,376	\$14,794	\$281,985
4,767	54,042	6,842	65,651
-	(66,163)	(2,539)	(68,702)
573	8,411	349	9,333
\$25,155	\$243,666	\$19,446	\$288,267

Cost	Land-use Right	Land and Buildings	Other Equipment	Total
Balance at January 1, 2023	\$393,707	\$397,582	\$29,663	\$820,952
Additions	-	86,205	5,899	92,104
Disposals	-	(5,237)	(405)	(5,642)
Derecognition	-	(3,107)	(4,884)	(7,991)
Effect of foreign currency exchange differences	13,581	11,602	461	25,644
Balance at September 30, 2023	\$407,288	\$487,045	\$30,734	\$925,067
Accumulated Depreciation and Impairment
Balance at January 1, 2023	\$14,093	\$196,060	\$16,922	\$227,075
Depreciation expense	4,276	60,171	5,964	70,411
Derecognition	-	(3,107)	(4,884)	(7,991)
Effect of foreign currency exchange differences	530	5,641	281	6,452
Balance at September 30, 2023	\$18,899	\$258,765	\$18,283	\$295,947

B. Lease liabilities
Item	September 30, 2024	December 31, 2023	September 30, 2023
Carrying amount of lease liabilities
- current	\$75,220	\$82,727	\$81,046
- noncurrent	\$89,363	\$146,042	\$174,896
The ranges of discount rates for lease liabilities:
Item	September 30, 2024	December 31, 2023	September 30, 2023
Land and buildings	0.63%-7.21%	0.63%-7.21%	0.63%-7.21%
Other equipment	0.73%-6.09%	0.72%-4.60%	0.67%-4.60%

Please refer to Note 12(3) for information on the maturity analysis of the lease liabilities.

C. Material lease-in activities and terms

The Group leased some land and buildings, etc. for operation, with the lease terms of 3 to 75 years. There is no sign of impairment of right-of-use assets as of September 30, 2024. Therefore, the Group didn't assess the impairment.

D. Subleasing: None.

E. Other lease information:

• (1) Please refer to Note 6(11) for lease-out agreements under operating lease for investment properties.
• (2) Cash outflow relating to leases is as follows:

	Three Months Ended September 30
Item	2024	2023
Short-term lease expense	\$3,259	\$3,312
Low-value asset lease expense	\$62	\$80
Variable lease payments that were excluded in the measurement of lease liabilities	\$ -	\$ -
Total cash outflow for leases (Note)	(\$79,287)	(\$18,274)
	Nine Months Ended September	30
Item	2024	2023
Short-term lease expense	\$8,643	\$8,117
Low-value asset lease expense	203	233
Variable lease payments that were excluded in the measurement of lease liabilities	\$ -	\$ -
Total cash outflow for leases (Note)	(\$120,621)	(\$70,246)

(Note): Payments of the principal portion of lease liabilities are included.

Item	September 30, 2024	December 31, 2023	September 30, 2023
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	(32,708)	(32,433)	(32,342)
Net	\$84,463	\$84,738	\$84,829
Cost	Land	Buildings	Total
Balance at January 1, 2024	\$77,109	\$40,062	\$117,171
Additions	-	-	-
Balance at September 30, 2024	\$77,109	\$40,062	\$117,171
Accumulated Depreciation and Impairment
Balance at January 1, 2024	\$ -	\$32,433	\$32,433
Depreciation expense	-	275	275
Balance at September 30, 2024	\$ -	\$32,708	\$32,708
Cost	Land	Buildings	Total
Balance at January 1, 2023	\$77,109	\$40,062	\$117,171
Additions	-	-	-
Balance at September 30, 2023	\$77,109	\$40,062	\$117,171
Accumulated Depreciation and Impairment
Balance at January 1, 2023	\$ -	\$32,065	\$32,065
Depreciation expense	-	277	277
Balance at September 30, 2023	\$ -	\$32,342	\$32,342

(11) Investment properties, net

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

	Three Months Ended September 30
Item	2024	2023
Rental income from investment properties	\$480	\$481
Direct operating expense arising from the investment properties that generated rental income during the period	\$92	\$92

	Nine Months	Ended September 30
Item	2024	2023
Rental income from investment properties	\$1,441	\$1,441
Direct operating expense arising from the investment properties that generated rental income during the period	\$367	\$370

B. The maturity analysis of lease payments receivable under operating leases of investment properties is as follow:

	September 30, 2024	December 31, 2023	September 30, 2023
Year 1	\$1,921	\$1,921	\$1,921
Year 2	1,792	1,921	1,921
Year 3	1,750	1,750	1,792
Year 4	437	1,750	1,750
Year 5	-	-	437
Over 5 years	-	-	-
Total	\$5,900	\$7,342	\$7,821

• C. Investment properties are depreciated on a straight-line basis with its useful life of 10 to 57 years.
• D. The fair values of investment properties held by the Group was \$168,677 thousand, \$168,677 thousand and \$160,060 thousand as of September 30, 2024, December 31, 2023 and September 30, 2023, 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 September 30, 2024, December 31, 2023 and September 30, 2023, respectively.
• F. The Group had no investment properties pledged to others.

Item	September 30, 2024	December 31, 2023	September 30, 2023
Trademark	\$8,611	\$8,447	\$8,718
Computer software	78,595	38,693	38,628
Total cost	\$87,206	\$47,140	\$47,346
Less: Accumulated amortization and impairment	(32,880)	(23,184)	(23,601)
Net	\$54,326	\$23,956	\$23,745

(12) Intangible assets

	Trademark		Computer Software	Total
Cost
Balance at January 1, 2024		\$8,447	\$38,693	\$47,140
Additions		-	51,973	51,973
Derecognition		-	(12,534)	(12,534)
Effect of foreign exchange differences		164	463	627
Balance at September 30, 2024		\$8,611	\$78,595	\$87,206
Accumulated Amortization and Impairment
Balance at January 1, 2024	\$	-	\$23,184	\$23,184
Amortization expenses		-	21,937	21,937
Derecognition		-	(12,534)	(12,534)
Effect of foreign exchange differences		-	293	293
Balance at September 30, 2024	\$	-	\$32,880	\$32,880
	Trademark		Computer Software	Total
Cost
Balance at January 1, 2023		\$8,448	\$37,465	\$45,913
Additions		-	9,116	9,116
Transfer from prepayments		-	196	196
Derecognition		-	(8,331)	(8,331)
Effect of foreign exchange differences		270	182	452
Balance at September 30, 2023		\$8,718	\$38,628	\$47,346
Accumulated Amortization and Impairment
Balance at January 1, 2023	\$	-	\$18,860	\$18,860
Amortization expenses		-	12,953	12,953
Derecognition		-	(8,331)	(8,331)
Effect of foreign exchange differences		-	119	119
Balance at September 30, 2023	\$	-	\$23,601	\$23,601

Item	September 30, 2024	December 31, 2023	September 30, 2023
Unsecured loans	\$1,079,486	\$457,581	\$938,014
Interest	1.20%-2.70%	0.50%-3.30%	0.50%-5.74%
(14) Other payables
Item	September 30, 2024	December 31, 2023	September 30, 2023
Accrued payroll	\$362,728	\$352,857	\$349,854
Service fee payable	14,336	51,659	11,364
R & D payable	46,515	50,003	48,887
Bonus to employees and remuneration to directors and supervisors	39,600	49,800	41,011
Equipment payable	54,635	35,150	16,957
Others	425,037	402,809	384,928
Total	\$942,851	\$942,278	\$853,001
(15) Provisions - current
Item	September 30, 2024	December 31, 2023	September 30, 2023
Employee benefits	\$61,010	\$52,467	\$52,251
		Nine Months	Ended September 30
		2024	2023
Balance, January 1		\$52,467	\$54,643
Recognized during the period		7,705	1,600
Used during the period		(550)	(4,753)
Effect of foreign exchange differences		1,388	761
Balance, September 30		\$61,010	\$52,251
Provision for employee benefits is estimated, based		on	vested short-term service leave.
(16) Bonds Payable
Item	September 30, 2024	December 31, 2023	September 30, 2023

(13) Short-term loans

The third unsecured convertible domestic bonds	\$ -	\$ -	\$49,000
Subtotal	-	-	49,000
Less: discounts on bonds payable	-	-	(2,742)
Net	\$ -	\$ -	\$46,258

• A. Third unsecured convertible domestic bonds:
• a. The Company issued the third unsecured domestic convertible bonds, which was approved by the regulatory authority on April 21, 2023. The total issuance amount is \$1,200,000 thousand and it is zero coupon bonds with the maturity of 5 years from May 24, 2023 to May 24, 2028.
• b. The conversion price of the bonds is set up based on the pricing model in the terms of the bonds. The conversion price at the time of issuance was \$54.90. As of September 30, 2023, the conversion price adjusted to \$53.30 based on the pricing model. As of December 31, 2023, all the shares have been converted.
• c. Under the terms of the bonds, all bonds redeemed, matured and converted are retired and not to be re-issued; all rights and obligation attached to the bonds are also extinguished.
• d. In accordance with the conversion provisions, the bond holders may request the Company to redeem the convertible bonds two years at the bond redemption base date. The company shall send the "Bond Redemption Notice" to the bondholders 30 days before the sell-back base date. The bond holders have the right to require the Company to redeem all of the bonds in cash with an interest calculated " 101.0025% of the face value of the bond after two years " the real rate of return is 0.5% "".
• e. After the following events occur during the period from the date after three months of the bonds issued to 40 days before the maturity date, the Company may redeem the outstanding convertible bonds in cash: (i) the closing price of the Company's common shares is above the then conversion price by 30% for 30 consecutive trading days, or (ii) the outstanding balance of the bonds is less than 10% of total initial issue amount.
• f. As of December 31, 2023, the Company redeemed the issued convertible bonds from open market by own funds at principal amount to \$0 thousand.

Item	September 30, 2024	December 31, 2023	September 30, 2023
Credit loans	\$602.087	\$395,706	\$402,127
Less: current portion due within one year	(96,367)	(182,775)	(121,872)
Total	\$505,720	\$212,931	\$280,255
Interest	0.75%-7.05%	0.75%-7.49%	0.75%-7.53%

(17) Long-term loans and current portion

Please refer to Note 8 for assets pledged as collateral for long-term loans.

(18) 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 pension expenses were \$45,660 thousand, \$43,132 thousand, \$137,308 thousand and \$132,023 thousand for the three months and nine months ended September 30, 2024 and 2023, respectively.
• B. Defined benefit plans
• a. The pension under the defined benefit plans were \$86 thousand, \$108 thousand, \$259 thousand and \$326 thousand for three months and nine months ended September 30, 2024 and 2023, respectively. The pensions were calculated using the actuarially determined pension cost discount rates as of December 31, 2023 and 2022.
• 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 2023, and funded the difference to reduce net defined benefit liability in March 2024 for \$0 thousand.

(19) Share capital

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

	Nine months Ended September 30, 2024
	Shares (in thousands)	Amount
Balance at January 1	272,525	\$2,725,243
Capital increase in cash	-	-
Conversion of bonds payable	919	9,194
Balance at September 30	273,444	\$2,734,437

Nine months Ended September 30, 2023
Shares (in thousands)	Amount
250,930	\$2,509,297
-	-
-	-
250,930	\$2,509,297

B. As of September 30, 2024, the authorized capital was \$5,000,000 thousand, consisting of 500,000 thousand shares.

C. While \$9,194 thousand was recorded as bond conversion entitlement certificates have completed the registration in February 2024.

Item	September 30, 2024	December 31, 2022	September 30, 2023
From merger	\$18,227	\$18,227	\$18,227
From convertible bonds	1,477,900	1,477,900	1,430,739
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
Stock options	-	-	10,508
Total	\$1,518,788	\$1,518,788	\$1,482,135

(20) Capital surplus

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.

(21) 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	September 30, 2024	December 31, 2023	September 30, 2023
Provision for the debit balance of other equity	\$221,030	\$178,602	\$178,602
Provision for initial application of IAS	79,155	79,155	79,155
Total	\$300,185	\$257,757	\$257,757

• 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 2023 and 2022 earnings have been approved by at the shareholders' meeting held in June 2024 and 2023, respectively. Details were summarized below:

	Appropriation of Earnings		Dividends Per Share	(NT\$)
Item	2023	2022	2023	2022
Legal reserve	\$133,407	\$109,921
Special reserve	42,428	(37,601)
Cash dividends	957,053	652,417	3.5	2.6
Total	\$1,132,888	\$724,737

In the event of repurchase of the Company's shares, transfer of treasury stocks to employees or other share change factors 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.

(4) Information on the earnings appropriation proposed by the Board of Directors and approved by the shareholders is available on the "Market Observation Post System" on the website of TWSE.

(22) Other equity

Item	Exchange differences on translation of foreign financial statements	Unrealized gain (loss) on financial asset at fair value through other comprehensive income	Total
Balance, January 1, 2024	(\$305,248)	\$5,063	(\$300,185)
Share of subsidiaries, associates and joint ventures accounted for using equity method	133,376	-	133,376
Unrealized gain (loss) on financial assets at fair value through other comprehensive income	-	2,085	2,085
Balance, September 30, 2024	(\$171,872)	\$7,148	(\$164,724)
Item	Exchange differences on translation of foreign financial statements	Unrealized gain (loss) on financial asset at fair value through other comprehensive income	Total
Balance, January 1, 2023	(\$257,757)	\$ -	(\$257,757)
Share of subsidiaries, associates and joint ventures accounted for using equity method	64,421	-	64,421
Unrealized gain (loss) on financial assets at fair value through other comprehensive income	-	3,630	3,630
Balance, September 30, 2023	(\$193,336)	\$3,630	(\$189,706)
(23) Operating revenues

	Three Months Ended September 30
Item	2024	2023
Revenue from contracts with customers
Sales revenue	\$4,087,493	\$3,311,097
Sales return	(9,927)	(13,874)
Sales discount	(46,997)	(3,619)
Net	\$4,030,569	\$3,293,604

	Nine Months Ended September 30
Item	2024	2023
Revenue from contracts with customers
Sales revenue	\$10,866,535	\$9,714,449
Sales return	(33,739)	(41,005)
Sales discount	(65,269)	(24,693)
Net	\$10,767,527	\$9,648,751

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	September 30, 2024	December 31, 2023	September 30, 2023
Receivables	\$4,137,106	\$3,079,399	\$3,509,826
Contract assets	-	-	-
Total	\$4,137,106	\$3,079,399	\$3,509,826
Contract liabilities - current	\$139,186	\$109,540	\$107,863

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:

	Nine Months Ended September	30
Revenue in the current period	2024	2023
From beginning contract liabilities	\$109,540	\$176,164
From previous period's satisfied performance obligations	\$ -	\$ -

(24) Labor cost, depreciation and amortization

	Three Months ended September 30, 2024
Item	Operating cost	Operating expenses	Total
Labor cost
Salaries	\$340,972	\$249,533	\$590,505
Insurance	28,358	21,334	49,692
Pension	33,456	12,290	45,746
Others	130,599	20,025	150,624
Depreciation	81,139	22,960	104,099
Amortization	5,373	14,060	19,433
Total	\$619,897	\$340,202	\$960,099

		Three Months ended September 30, 2023
Item	Operating cost	Operating expenses	Total
Labor cost
Salaries	\$269,499	\$238,180	\$507,679
Insurance	26,652	19,535	46,187
Pension	31,928	11,312	43,240
Others	118,912	18,176	137,088
Depreciation	78,772	21,983	100,755
Amortization	18,901	12,467	31,368
Total	\$544,664	\$321,653	\$866,317

Nine Months ended September 30, 2024

Item	Operating cost	Operating expenses	Total
Labor cost
Salaries	\$987,782	\$721,884	\$1,709,666
Insurance	83,492	64,105	147,597
Pension	102,003	35,564	137,567
Others	381,613	54,680	436,293
Depreciation	240,749	67,910	308,659
Amortization	21,386	41,820	63,206
Total	\$1,817,025	\$985,963	\$2,802,988

Nine Months ended September 30, 2023

Item	Operating cost	Operating expenses	Total
Labor cost
Salaries	\$804,138	\$675,090	\$1,479,228
Insurance	81,699	60,458	142,157
Pension	99,201	33,148	132,349
Others	384,708	49,527	434,235
Depreciation	231,286	67,981	299,267
Amortization	67,654	37,408	105,062
Total	\$1,668,686	\$923,612	\$2,592,298

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 and nine months ended September 30, 2024 and 2023, employees' compensation was accrued at \$11,000 thousand, \$15,001 thousand, \$31,800 thousand and \$33,645 thousand, respectively, while directors' remuneration was accrued at \$2,500 thousand, \$3,344 thousand, \$7,800 thousand and \$7,366 thousand, respectively.

1. The employees' compensation and remuneration to directors for the years ended December 31, 2023 and 2022 had been approved by the Company's Board of Directors meeting held on March 7, 2024 and March 9, 2023, respectively, and the relevant amounts recognized in the consolidated financial statements were as follows:

	Year ended December 31
	2023		2022
	Employees' compensation	Remuneration to directors	Employees' compensation	Remuneration to directors
Resolution amount of allotment	\$39,800	\$10,000	\$32,000	\$8,000
Recognized in financial statements	39,800	10,000	32,000	8,000
Difference	\$ -	\$ -	\$ -	\$ -

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

1. Information about the appropriation of employees' compensation and directors' remuneration by the Company as resolved by the Board of Directors can be obtained from the "Market Observation Post System" on the website of TWSE.

(25) Interest income

	Three Months Ended September 30
Item	2024	2023
Interest on bank deposits	\$32,010	\$27,321
Interest on early payment	1,389	935
Others	15	12
Total	\$33,414	\$28,268

	Nine Months Ended September 30
Item	2024	2023
Interest on bank deposits	\$99,832	\$57,996
Interest on early payment	3,821	2,792
Others	39	62
Total	\$103,692	\$60,850

(26) Other income

	Three Months Ended September	30
Item	2024	2023
Rental income	\$549	\$493
Others - Sample sales, etc.	17,558	7,335
Others - Subsidy	1,679	16,366
Others	12,198	9,684
Total	\$31,984	\$33,878

	Nine Months Ended September	30
Item	2024	2023
Rental income	\$1,536	\$1,480
Others - Sample sales, etc.	49,184	31,388
Others - Subsidy	3,303	33,409
Others	65,766	27,706
Total	\$119,789	\$93,983

(27) Other gains and losses

	Three Months Ended September 30
Item	2024	2023
Net gain (loss) on financial instruments at FVTPL	\$199	\$2,705
Net currency exchange gain (loss)	(99,875)	87,855
Gain (loss) on disposal of property, plant and equipment	(7,679)	(1,000)
Gain on disposal of investments	-	1,231
Others	(15,483)	(23,881)
Total	(\$122,838)	\$66,910

	Nine Months Ended September 30
Item	2024	2023
Net gain (loss) on financial instruments at FVTPL	\$9,078	\$8,299
Net currency exchange gain (loss)	38,132	183,741
Gain (loss) on disposal of property, plant and equipment	(9,869)	(2,054)
Gain on disposal of investments	-	1,801
Others	(23,827)	(43,785)
Total	\$13,514	\$148,002

(28) Finance costs

	Three Months Ended September 30
Item	2024	2023
Interest on loans	\$10,262	\$8,608
Interest on lease liabilities	1,940	1,780
Interest of convertible bonds	-	2,642
Less: capitalized amount for qualified assets	-	-
Carrying amount	\$12,202	\$13,030

	Nine Months Ended September 30
Item	2024	2023
Interest on loans	\$20,191	\$28,309
Interest on lease liabilities	6,416	5,394
Interest of convertible bonds	-	4,080
Less: capitalized amount for qualified assets	-	-
Carrying amount	\$26,607	\$37,783

(29) Income tax expense

A. Components of tax expense:

	Three Months Ended September 30
Current income tax	2024	2023
Income tax incurred in current year	\$80,966	\$79,523
Prior year income tax (over) under estimation	940	1,552
Total	\$81,906	\$81,075
Deferred income tax
The origination and reversal of temporary differences	\$20,688	\$54,972
Total	\$20,688	\$54,972
Income tax expense	\$102,594	\$136,047

	Nine Months Ended September 30
Current income tax	2024	2023
Income tax incurred in current year	\$347,565	\$268,168
Prior year income tax (over) under estimation	12,873	(44,599)
Total	\$360,438	\$223,569

Deferred income tax
The origination and reversal of temporary differences	\$5,293	\$106,222
Total	\$5,293	\$106,222
Income tax expense	\$365,731	\$329,791

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.

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

	Three Months Ended September 30
Item	2024	2023
Exchange differences on translation of foreign operations	\$44	\$25,828
	Nine Months Ended September	30
Item	2024	2023
Exchange differences on translation of foreign operations	\$33,343	\$16,105

C. The tax authorities have rectified Company's income tax returns through 2022.

(30) Other comprehensive income (loss)

	Three Months Ended September 30, 2024
	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	\$1,145	\$ -	\$1,145
value through other comprehensive income
Subtotal	\$1,145	\$ -	\$1,145
Items that may be reclassified subsequently to
profit or loss:
Exchange differences on translation of foreign	\$222	(\$44)	\$178
financial statements
Subtotal	\$222	(\$44)	\$178
Recognized in other comprehensive income (loss)	\$1,367	(\$44)	\$1,323

Three Months Ended September 30, 2023
	Income tax
		After tax
\$593	\$ -	\$593
\$593	\$ -	\$593
\$129,141	(\$25,828)	\$103,313
\$129,141	(\$25,828)	\$103,313
\$129,734	(\$25,828)	\$103,906
Nine	Months Ended September	30, 2024
	Income tax
Before tax	expense (benefit)	After tax
\$2,085	\$ -	\$2,085
\$2,085	\$ -	\$2,085
\$166,719	(\$33,343)	\$133,376
\$166,719	(\$33,343)	\$133,376
	Before tax	expense (benefit)

	Nine Months Ended September 30, 2023
		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	\$3,630	\$ -	\$3,630
value through other comprehensive income
Subtotal	\$3,630	\$ -	\$3,630
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign financial statements	\$80,526	(\$16,105)	\$64,421
Subtotal	\$80,526	(\$16,105)	\$64,421
Recognized in other comprehensive income (loss)	\$84,156	(\$16,105)	\$68,051
(31) Earnings per share
		Three Months Ended September	30
Item		2024	2023
(1) Basic earnings per share:
Net income attributable to owners of the parent		\$349,096	\$385,958
Weighted average shares outstanding (in thousands)		273,444	258,172
Basic earnings per share (after tax)		\$1.28	\$1.49
(2) Diluted earnings per share:
Net income attributable to owners of the parent		\$349,096	\$385,958
Interest of convertible bonds		-	2,114
Net income used in computation of diluted earnings per share		\$349,096	\$388,072
Weighted average shares outstanding (in thousands)		273,444	258,172
Convertible bonds (in thousands)		-	9,880
Impact on employees' compensation (Note)		344	289
Weighted average number of ordinary shares outstanding after dilution (in thousands)		273,788	268,341
Diluted earnings per share (after tax)		\$1.28	\$1.45

	Nine Months Ended September	30
Item	2024	2023
(1) Basic earnings per share:
Net income attributable to owners of the parent	\$1,054,693	\$1,095,537
Weighted average shares outstanding (in thousands)	273,444	253,370
Basic earnings per share (after tax)	\$3.86	\$4.32
(2) Diluted earnings per share:
Net income attributable to owners of the parent	\$1,054,693	\$1,095,537
Interest of convertible bonds	-	3,264
Net income used in computation of diluted earnings per share	\$1,054,693	\$1,098,801
Weighted average shares outstanding (in thousands)	273,444	253,370
Convertible bonds (in thousands)	-	6,372
Impact on employees' compensation (Note)	344	289
Weighted average number of ordinary shares outstanding after dilution (in thousands)	273,788	260,031
Diluted earnings per share (after tax)	\$3.86	\$4.23

(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:

	Three months ended September 30
Related Party Category	2024	2023
Associates	\$ -	\$ -
	Nine months ended September	30
Related Party Category	2024	2023
Associates	\$ -

The selling price is equivalent to ordinary customers, and the collection period is 2-4 months. Collection can be delayed when agreed on by both parties.

B. Purchase:

	Three months ended September 30
Related Party Category	2024	2023
Associates	\$28,452	\$19,935
	Nine months ended September	30
Related Party Category	2024	2023
Associates	\$73,030	\$72,938

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): Related Party

Item	Category	September 30, 2024	December 31, 2023	September 30, 2023
Accounts receivable	Associates	\$ -	\$ -	\$129

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

	Related Party
Item	Category	September 30, 2024	December 31, 2023	September 30, 2023
Accounts payable	Associates	\$17,160	\$18,733	\$13,444
Other payables	Associates	\$322	\$103	\$346

G. Advance receipts: None.

H. Property transactions: None.

I. Lessee arrangements:

Item	Related Party Category	September 30, 2024		December 31, 2023		September 30, 2023
Refundable deposits	Other related parties		\$26		\$26	\$26
Lease liabilities - current	Other related parties		\$13		\$129	\$13
				Three Months Ended September		30
Item		Related Party Category		2024		2023
Interest expense		Other related parties \$ -			\$ -
				Nine Months Ended September		30
Item	Related Party Category		2024			2023
Interest expense		Other related parties		\$1		\$1
Item Other receivables	J. Rent arrangements: None. K. Financing activities - (a) Ending balance Related Party Category Associates	lending to related parties: September 30, 2024 \$ -		December 31, 2023 \$ -		September 30, 2023 \$ -
(b)	Interest income			Three months ended September		30
Related Party Category				2024		2023
	Associates			\$ -		\$ -
Rate				-		-
				Nine months ended September		30
		Related Party Category		2024		2023
	Associates			\$ -		\$27
Rate				-		4.35%

L. Financing activities - borrowing from related parties: None.

M. Guarantee for related parties: None.

N. Others:
a. Guarantee deposits:
Related Party Category	September 30, 2024	December 31, 2023	September 30, 2023
Other related parties	\$55	\$55	\$55
b. Miscellaneous income:
		Three Months Ended September	30
Related Party Category		2024	2023
Other related parties		\$49	\$49
		Nine	Months Ended September 30
Related Party Category		2024	2023
Other related parties		\$146
agreements c. Miscellaneous expense	and received monthly.	Three Months Ended September	30
Related Party Category		2024	2023
Associates		\$830	\$229
		Nine	Months Ended September 30
Related Party Category		2024	2023
Associates		\$4,796	\$645
	Miscellaneous expense is research and development expenses.
(4) Key management compensation
		Three Months Ended September	30
Item		2024	2023

Salaries and other short-term employee benefits	\$22,534	\$23,389
Post-employment benefits	-	-
Other long-term employee benefits	-	-
Termination benefits	-	-
Share-based payments	-	-
Total	\$22,534	\$23,389

		Nine	Months Ended September 30
Item		2024	2023
Salaries and other short-term employee benefits		\$62,856	\$63,587
Post-employment benefits		-	-
Other long-term employee benefits		-	-
Termination benefits		-	-
Share-based payments		-	-
Total		\$62,856	\$63,587
8. PLEDGED ASSETS
Item	September 30, 2024	December 31, 2023	September 30, 2023
Property, plant and equipment (net)	\$496,858	\$496,858	\$496,858

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACT COMMITMENTS

• (1) As of September 30, 2024, December 31, 2023 and September 30, 2023, the Group issued guarantee notes for bank loans amounting to \$3,274,812 thousand, \$3,404,317 thousand and \$3,450,499 thousand, respectively.
• (2) As of September 30, 2024, December 31, 2023 and September 30, 2023, the unused letters of credit issued by the Group were as follows:

			(In thousands)
Item	September 30, 2024	December 31, 2023	September 30, 2023
L/C Amount	USD 816	USD 815	USD 220

(3) As of September 30, 2024, December 31, 2023 and September 30, 2023, the note endorsement for material purchase were as follows:

			(In thousands)
Item	September 30, 2024	December 31, 2023	September 30, 2023
Bank acceptance	USD 1,380	USD 1,239	USD 246

• (4) As of September 30, 2024, December 31, 2023 and September 30, 2023, the Group provided guarantees for others. Please refer to Note 13 for the information.
• (5) 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).

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 nine months ended September 30, 2024 as compared with the consolidated financial statements for the year ended December 31, 2023. Please refer to Note 12(1) of the consolidated financial statements for the year ended December 31, 2023 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 nine months ended September 30, 2024 as compared with the consolidated financial statements for the year ended December 31, 2023. Please refer to Note 12(2) of the consolidated financial statements for the year ended December 31, 2023 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 and Loss Impact	Equity Impact
Financial assets
Monetary item
USD:NTD	133,364	31.6500	4,220,982	increase 1%	42,210	-
EUR:NTD	5,829	35.3800	206,219	increase 1%	2,062	-
USD:RMB	108,685	7.0073	3,439,894	increase 1%	34,399	-
USD:PHP	7,588	55.8920	240,153	increase 1%	2,402	-
Financial liabilities
Monetary item
USD:NTD	93,385	31.6500	2,955,621	increase 1%	(29,556)	-
USD:RMB	61,326	7.0073	1,940,953	increase 1%	(19,410)	-
USD:PHP	4,235	55.8920	134,034	increase 1%	(1,340)	-
				December 31, 2023
					Sensitivity Analysis
	Foreign Currency	Exchange Rate	Carrying Value (NTD)	Variation	Profit or Loss Impact	Equity Impact
Financial assets
Monetary items
USD:NTD	147,441	30.7050	4,527,187	Increase 1%	45,272	-
EUR:NTD	6,295	33.9800	213,894	Increase 1%	2,139	-
USD:RMB	88,522	7.0827	2,718,070	Increase 1%	27,181	-
USD:EUR	3,391	0.9036	104,123	Increase 1%	1,041	-
USD:PHP	3,974	55.5646	122,018	Increase 1%	1,220	-
Financial liabilities
Monetary items
USD:NTD	79,851	30.7050	2,451,815	Increase 1%	(24,518)	-
USD:RMB	48,235	7.0827	1,481,042	Increase 1%	(14,810)	-
USD:EUR	4,518	0.9036	138,725	Increase 1%	(1,387)	-

September 30, 2024

			September 30, 2023
				Sensitivity Analysis
	Foreign Currency	Exchange Rate	Carrying Value (NTD)	Variation	Profit or Loss Impact	Equity Impact
Financial assets
Monetary items
USD:NTD	145,533	32.2700	4,696,340	increase 1%	46,963	-
EUR:NTD	5,625	33.9100	190,738	increase 1%	1,907	-
USD:RMB	93,615	7.1798	3,020,945	increase 1%	30,209	-
USD:PHP	5,098	56.9610	164,505	increase 1%	1,645	-
Financial liabilities
Monetary item
USD:NTD	81,541	32.2700	2,631,323	increase 1%	(26,313)	-
USD:RMB	46,806	7.1798	1,510,420	increase 1%	(15,104)	-
USD:EUR	4,830	0.9516	155,868	increase 1%	(1,559)	-

When New Taiwan Dollar appreciates and other variation factors stay unchanged, there will be the same but opposite amount of influence as of September 30, 2024, December 31, 2023 and September 30, 2023.

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

	Nine Months Ended September 30, 2024			Nine Months Ended September 30, 2023
		Foreign Exchange Gain (Loss)		Foreign Exchange Gain (Loss)
	Foreign Currency (In thousands)	Exchange Rate	Currying Amount	Foreign Currency (In thousands)	Exchange Rate	Currying Amount
Financial Assets
Monetary Items
USD: NTD	-	32.0470	(80,283)	-	30.9550	142,911
EUR: NTD	-	34.8500	717	-	33.5400	(1,096)
USD: RMB	(12,231)	7.1092	(55,137)	1,162	7.0148	5,129
USD: EUR	(57)	0.9196	(1,971)	119	0.9229	3,982
USD: PHP	1,038	56.9987	583	866	55.5560	482
Financial Liabilities
Monetary Items
USD: NTD	-	32.0470	26,243	-	30.9550	(101,584)
EUR: NTD	-	34.8500	(21)	-	33.5400	114
USD: RMB	6,844	7.1092	30,852	(2,058)	7.0148	(9,080)
USD: EUR	63	0.9196	2,204	(159)	0.9229	(5,325)
USD: PHP	(511)	56.9987	(287)	20	53.5560	11

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.

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) \$1,693 thousand and \$5 thousand for the nine months ended September 30, 2024 and 2023, respectively. The other comprehensive income from equity instruments at fair value through other comprehensive income or loss will increase (or decrease) \$294 thousand and \$259 thousand for the nine months ended September 30, 2024 and 2023, respectively.

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	September 30, 2024	December 31, 2023	September 30, 2023
Fair value interest rate risk:
Financial assets	\$225,833	\$216,761	\$224,728
Financial liabilities	(164,583)	(228,769)	(302,200)
Net	\$61,250	(\$12,008)	(\$77,472)
Cash flow interest rate risk:
Financial assets	\$3,989,899	\$4,023,416	\$3,808,395
Financial liabilities	(1,681,573)	(853,287)	(1,340,141)
Net	\$2,308,326	\$3,170,129	\$2,468,254

(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. 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 (decrease) \$17,312 thousand and \$18,512 thousand for the nine months ended September 30, 2024 and 2023, 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 September 30, 2024, December 31, 2023 and September 30, 2023, the Group's ten largest customers accounted for 41.50%, 30.44% and 31.28% 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 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,

September 30, 2024	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	169,328	-	-	-	-
through other comprehensive income or loss	29,406	-	-	-	-
Total	\$198,734	\$ -	\$ -	\$ -	\$ -

master netting arrangements and other credit enhancement held by the Group:

Decrease Amount of Credit Risk Maximum Exposure
-------------------------------------------------

Decrease Amount of Credit Risk Maximum Exposure

December 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 through other comprehensive	- 27,231	- -	- -	- -	- -
income or loss Total	\$27,231	\$ -	\$ -	\$ -	\$ -

Decrease Amount of Credit Risk Maximum Exposure

September 30, 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	544	-	-	-	-
through other comprehensive income or loss	25,877	-	-	-	-
Total	\$26,421	\$ -	\$ -	\$ -	\$ -

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 nine months ended September 30, 2024 as compared with the consolidated financial statements for the year ended December 31, 2023.

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	\$1,079,486	\$ -	\$ -	\$ -	\$1,079,486	\$1,079,486
Notes payable	33,719	-	-	-	33,719	33,719
Accounts payable	3,170,135	394	-	-	3,170,529	3,170,529
Other payables	942,215	85	551	-	942,851	942,851
Long-term loans	96,367	119,720	289,500	96,500	602,087	602,087
(Inclusive of current portion)
Lease liabilities	93,221	64,226	39,088	10,143	206,678	164,583
Guarantee deposits	2,271	-	-	-	2,271	2,271
Total	\$5,417,414	\$184,425	\$329,139	\$106,643	\$6,037,621	\$5,995,526

September 30, 2024

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

Item	Within 1 year	1-5 years	5-10 years	10-15 years	15-20 years	Over 20 years	Undiscounted payments
Lease liabilities	\$93,221	\$103,314	\$10,143	\$ -	\$ -	\$ -	\$206,678

				December 31, 2023
Non-derivative Financial liabilities	Within 1 year	1-2 years	2-5 years	Over 5 years	Contract Cash Flow	Carrying Value
Short-term loans	\$457,581	\$ -	\$ -	\$ -	\$457,581	\$457,581
Notes payable	31,067	-	-	-	31,067	31,067
Accounts payable	2,737,012	-	-	-	2,737,012	2,737,012
Other payables	941,732	221	325	-	942,278	942,278
Long-term loans	182,775	124,042	88,889	-	395,706	395,706
(Inclusive of current portion)
Lease liabilities	106,577	78,942	61,481	17,519	264,519	228,769
Guarantee deposits	839	-	-	-	839	839
Total	\$4,457,583	\$203,205	\$150,695	\$ 17,519	\$4,829,002	\$4,793,252

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

Item	Within 1 year	1-5 years	5-10 years	10-15 years	15-20 years	Over 20 years	Undiscounted payments
Lease liabilities	\$106,577	\$140,423	\$17,519	\$ -	\$ -	\$ -	\$264,519

Non-derivative Financial liabilities	Within 1 year	1-2 years	2-5 years	Over 5 years	Contract Cash Flow	Carrying Value
Short-term loans	\$938,014	\$ -	\$ -	\$ -	\$938,014	\$938,014
Notes payable	36,233	-	-	-	36,233	36,233
Accounts payable	2,770,794	-	25	-	2,770,819	2,770,819
Other payables	851,925	207	420	449	853,001	853,001
Long-term loans	121,872	191,366	88,889	-	402,127	402,127
(Inclusive of current portion)
Bonds payable	-	-	49,000	-	49,000	46,258
Lease liabilities	95,312	84,262	80,054	21,125	280,753	255,942
Guarantee deposits	854	-	-	-	854	854
Total	\$4,815,004	\$275,835	\$218,388	\$21,574	\$5,330,801	\$5,303,248

September 30, 2023

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

Item	Within 1 year	1-5 years	5-10 years	10-15 years	15-20 years	Over 20 years	Undiscounted payments
Lease liabilities	\$95,312	\$164,316	\$21,125	\$ -	\$ -	\$ -	\$280,753

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.

2. Categories of financial instruments

The carrying value of financial assets and liabilities of the Group as of September 30, 2024, December 31, 2023 and September 30, 2023 was as follows:

Financial assets	September 30, 2024	December 31, 2023		September 30, 2023
Financial assets measured at
amortized cost
Cash and cash equivalents	\$ 3,997,713	\$ 4,030,886	\$	3,828,852
Notes and accounts receivable	4,137,106	3,079,399		3,509,826
Other receivables	116,808	100,710		101,804
Other financial assets - current	225,833	216,761		224,728
Refundable deposits	19,172	20,961		23,367
Financial asset at fair value
through profit or loss	169,328	-		544
-noncurrent
Financial asset at fair value
through other comprehensive	29,406	27,231		25,877
income or loss noncurrent

Financial liabilities
Financial liabilities measured at
amortized cost
Short-term loans	1,079,486	457,581	938,014
Notes and accounts payable (including related parties)	3,204,248	2,768,079	2,807,052
Other payables (including related parties)	942,851	942,278	853,001
Lease liabilities (including current and noncurrent)	164,583	228,769	225,942
Long-term loans	602,087	395,706	402,127
Bonds payable	-	-	46,258
Guarantee deposits	2,271	839	854

(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(4) 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 except those listed in the table below, 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. September 30, 2024: None.

December 31, 2023: None.

		September	30, 2023
		Fair value
	Carrying
Item	amount	Level 1	Level 2	Level 3
Financial Liabilities:
Bonds payable	\$46,258	\$104,860	\$ -	\$ -

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:

	Level 2		Level 3	Total
\$ -	\$	-	\$169,328	\$169,328
-		-	29,406	29,406
\$ -	\$	-	\$198,734	\$198,734
	Level 2		Level 3	Total
\$ -	\$	-	\$27,231	\$27,231
\$ -	\$	-	\$27,231	\$27,231
	Level 1 Level 1		September	30, 2024 December 31, 2023

			September	30, 2023
Item	Level 1		Level 2	Level 3	Total
Assets:
Recurring fair value measurements
Financial assets at fair value
through profit or loss:
Redemption and put options of convertible bonds	\$	-	\$544	\$ -	\$544
Financial assets at fair value
through other comprehensive
income or loss:
Domestic unlisted stocks		-	-	25,877	25,877
Total	\$	-	\$544	\$25,877	\$26,421

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. The fair value of financial instruments with active markets held by the Company are stated by their natures and types as follows:

a. Open-end funds: net worth.

d. corporate bonds:Weighted average price of \$100.

c. Convertible (exchangeable) corporate bonds: closing price.

(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. September 30, 2024:

Item	Evaluation technology	Check the input value	interval	Input value and fair value relationship
Financial assets at fair value through profit or loss	Income Approach	Discount rate	6.01%	The higher the degree of discount rate, the lower the fair value estimate
Financial assets at fair value through other comprehensive income or loss	Market Approach	Lack of liquidity discount rate		16.48%-21.29%The higher the degree of lack of liquidity, the lower the fair value estimate

December	31, 2023:
	Evaluation	Check the		Input value and fair
Item	technology	input value	interval	value relationship
Financial assets at fair	Market	Lack of		18.71%-21.29%The higher the degree
value through other	Approach	liquidity		of lack of liquidity, the
comprehensive income		discount rate		lower the fair value
or loss				estimate

September 30,	2023:
	Evaluation	Check the		Input value and fair
Item	technology	input value	interval	value relationship
Financial assets at fair	Market	Lack of		14.08%-18.44%The higher the degree
value through other	Approach	liquidity		of lack of liquidity, the
comprehensive income		discount rate		lower the fair value
or loss				estimate

E. There was no transfer between Level 1 and Level 2 for the nine months ended September 30, 2024 and 2023

	Investment in unquoted financial instruments
	Nine Months	Ended September 30
Item	2024	2023
Beginning balance	\$27,231	\$ -
Addition	160,250	22,247
Recognized in income	9,078	-
Recognized in other comprehensive income	2,085	3,630
Effect of foreign exchange differences	90	-
Ending balance	\$198,734	\$25,877

F. Changes in level 3 instruments as for the nine months ended September 30, 2024 and 2023:

H. Valuation process for Level 3 fair value measurement:

Valuation process regarding fair value Level 3 is conducted by the Group's finance department, 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. Significant transactions information (before consolidated elimination)

• a. Loans provided to other parties: None.
• b. Endorsements/guarantees provided: Table 1.
• c. Marketable securities held: Table 2.
• d. Marketable securities acquired and disposed of at costs or prices of at least NT\$300 million or 20% of the paid-in capital: None.
• 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 3.
• h. Receivables from related parties amounting to at least NT\$100 million or 20% of the paid-in capital: Table 4.
• 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 5.

• B. Information on investees (before consolidated elimination): Table 6.

• C. Information on investments in Mainland China (before consolidated elimination): Table 7.

• D. Information on major shareholders (including name of the shareholders with shareholding above 5%, shares held and shareholding ratio): Table 8.

Table 1

SUNONWEALTH ELECTRIC MACHINE INDUSTRY CO., LTD. AND SUBSIDIARIES

ENDORSEMENTS/GUARANTEES PROVIDED

SEPTEMBER 30, 2024

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

No.	Endorser		Endorsee	Endorsement Limit for a Single	Highest Balance	Ending	Actual Amount	Balance Secured	Ratio of Accumulated Amount to	Maximum Amount of	Provision of Endorsements by Parent	Provision of Endorsements by Subsidiary	Provision of Endorsements to
(Note 1)		Company Name	Relationship (Note 2)	Entity (Note 3)	During the Period	Balance	Drawn	by Collaterals	Net Worth of the Company	Endorsement (Note 4)	Company to Subsidiary	to Parent Company	the Party in Mainland China
	Sunonwealth Electric	Sunon Electronic			NTD 280,234	NTD 185,284
0	Machine Industry Co., Ltd.	(Kunshan) Co., Ltd.	2	2,235,548	(USD 6,000; RMB 20,000)	(USD 3,000; RMB 20,000)	-	-	2.49%	3,725,914	Y	N	Y
0	Sunonwealth Electric Machine	Sunon Electronic (Bei Hai)	2	2,235,548	NTD 673,551 (USD 17,000;	NTD 515,301 (USD 12,000;	-	-	6.92%	3,725,914	Y	N	Y
	Industry Co., Ltd.	Co., Ltd.			RMB 30,000)	RMB 30,000)
0	Sunonwealth Electric Machine Industry Co., Ltd.	Bei hai Li Zhun Electronic Co., Ltd.	2	2,235,548	NTD 370,568 (USD 6,000; RMB 40,000)	NTD 370,568 (USD 6,000; RMB 40,000)	-	-	4.97%	3,725,914	Y	N	Y
1	Sunon Electronic (Bei Hai) Co., Ltd.	Bei hai Li Zhun Electronic Co., Ltd.	1	185,511	NTD 45,167 (RMB 10,000)	NTD 45,167 (RMB 10,000)	NTD 45,167 (RMB 10,000)	-	4.87%	463,779	N	N	Y
2	Sunon Electronic (Kunshan) Co., Ltd.	Sunon Electronic (Bei Hai) Co., Ltd.	1	342,872	NTD 225,835 (RMB 50,000)	NTD 112,918 (RMB 25,000)	NTD 112,918 (RMB 25,000)	-	6.59%	857,181	N	N	Y
2	Sunon Electronic (Kunshan) Co., Ltd.	Bei hai Li Zhun Electronic Co., Ltd.	1	342,872	NTD 225,835 (RMB 50,000)	NTD 225,835 (RMB 50,000)	NTD 176,151 (RMB 39,000)	-	13.17%	857,181	N	N	Y

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:

1. Trading partner.

2. Majority owned subsidiary.

3. 1. The Company directly and indirectly owns over 50% ownership of the investee company.
4. 1. A subsidiary jointly owned over 90% by the Company.
5. 1. Guaranteed by the Company according to the construction contract.
6. 1. An investee company. The guarantees were provided based on the Company's proportionate share in the investee company.
7. 1. Joint and several guaranteed by the Company according to the pre-construction contract under Consumer Protection Act.
8. 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.
9. Note 4: The maximum amount of the endorsements/guarantees provided by the Company shall not exceed 50% of the Company's net worth.
10. Note 5: Sunonwealth Electric Machine Industry Co., Ltd. endorsed Sunon Electronic (Kunshan) Co., Ltd. and Bei hai Li Zhun Electronic Co., Ltd. to guarantee a shared quota of NTD 90,334 thousand (RMB 20,000 thousand).

Table 2

SUNONWEALTH ELECTRIC MACHINE INDUSTRY CO., LTD. AND SUBSIDIARIES

MARKETABLE SECURITIES HELD

SEPTEMBER 30, 2024

(Amounts in Thousands of New Taiwan Dollars)

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
Sunonwealth Electric	Convertible bonds – Righ, INC. (Formerly known as INNOVO, INC.)	None	Financial assets at fair value through profit or loss-noncurrent	-	169,328	-	169,328
Ltd.	Ending Balance Machine Industry Co., Financial assets at fair value Stock – Technology on Prototyping None through other comprehensive 870 26,238 15.7% 26,238 Ultimate Co., Ltd. income or loss-noncurrent Financial assets at fair value Electronic Stock – ACP HEAT TRANSFER TECH None through other comprehensive - 3,168 10.0% 3,168 WUXI CO LTD income or loss-noncurrent
Sunon (Kunshan) Co., Ltd.

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

SEPTEMBER 30, 2024

(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	712,927	8.87%	3 to 4 months	-	-	821,223	22.86%
	Sunon SAS	Subsidiary	Sales	210,984	2.62%	2 to 3 months	-	-	95,884	2.67%
	Sunon INC	Subsidiary	Sales	129,925	1.62%	2 to 3 months			45,340	1.26%
Sunon Electronic (Kunshan) Co., Ltd.	Sunonwealth Electric Machine Industry Co., Ltd.	Parent	Sales	1,440,849	40.49%	3 to 4 months	-	-	453,524	33.43%
Sunon Electronics (Bei Hai) Co., Ltd.	Sunonwealth Electric Machine Industry Co., Ltd.	Parent	Sales	4,093,254	96.87%	3 to 4 months	-	-	1,487,738	94.96%
Bei Hai Li Zhan Electronics	Sunon Electronic (Kunshan) Co., Ltd.	The ultimate parent company	Sales	426,135	23.65%	3 to 4 months	-	-	231,339	29.08%
Co., Ltd.	Sunon Electronics Philippines Corp.	Subsidiary	Sales	136,894	7.60%	3 to 4 months			78,192	9.83%
Sunon Electronics Philippines Corp.	Sunonwealth Electric Machine Industry Co., Ltd.	Parent	Sales	292,556	100.00%	2 to 3 months	-	-	76,656	100.00%

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

Table 3

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

SEPTEMBER 30, 2024

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

Company Name	Related Party	Relationship	Ending Balance	Turnover Rate	Amount	Overdue Action Taken	Amounts Received in Subsequent Period (Note1)	Allowance for Impairment Loss
Sunonwealth Electric Machine Industry Co., Ltd.	Sunon Electronic (Bai Hai) Co., Ltd.	Subsidiary	NTD 821,223	3.27	-	-	NTD 194,422	-
Sunon Electronic (Kunshan) Co., Ltd.	Sunonwealth Electric Machine Industry Co., Ltd.	Parent	NTD 453,524 (RMB 100,411)	4.01	-	-	NTD 144,961 (RMB 32,095)	-
Sunon Electronic (Bei Hai) Co., Ltd.	Sunonwealth Electric Machine Industry Co., Ltd.	Parent	NTD 1,487,738 (RMB 329,386)	4.18	-	-	NTD 512,518 (RMB 113,472)	-
Bei Hai Li Zhan Electronics Co., Ltd.	Sunon Electronic (Kunshan) Co., Ltd.	The ultimate parent company	NTD 231,339 (RMB 51,219)	2.27	-	-	NTD 53,322 (RMB 11,805)	-

Note 1: Amounts collected as of November 11, 2024.

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

Table 5

SUNONWEALTH ELECTRIC MACHINE INDUSTRY CO., LTD. AND SUBSIDIARIES

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS

SEPTEMBER 30, 2024

Individual transactions that amount to less than \$50,000 thousand are not disclosed; disclose the asset or revenue side only. No further disclosure is needed on the opposing side of the same transaction

(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)
		Sunon SAS		Sales	210,984	(Note4)	1.96%
			1	Accounts receivable	95,884		0.68%
	Sunonwealth Electric	Sunon INC	1	Sales	129,925	(Note4)	1.21%
0	Machine Industry			Sales	712,927		6.62%
	Co., Ltd.	SunonElectronic (BaiHai) Co., Ltd.	1	Accounts receivable	821,223	(Note4)	5.82%
		Sunon Electronic (Kunshan) Co., Ltd.	1	other income	73,040	(Note4)	0.68%
		Bei Hai Li Zhan Electronics Co., Ltd.	1	other income	67,178	(Note4)	0.62%
	Sunon Electronic	Sunonwealth Electric Machine		Sales	1,440,849		13.38%
1	(Kunshan) Co., Ltd.	Industry Co., Ltd.	2	Accounts receivable	453,524	(Note4)	3.21%
		Sunonwealth Electric Machine		Sales	4,093,254	(Note4)	38.01%
2	Sunon Electronic (BeiHai) Co., Ltd.	Industry Co., Ltd.	2	Accounts receivable	1,487,738		10.54%
		Sunon Electronics Philippines Corp.	2	Sales	66,143	(Note4)	0.61%
		Sunon Electronic (Kunshan) Co., Ltd.		Sales	426,135	(Note4)	3.96%
	Bei Hai Li Zhan		3	Accounts receivable	231,339		1.64%
3	Electronics Co., Ltd.	Sunon Electronics Philippines Corp.		Sales	136,894		1.27%
			3	Accounts receivable	78,192	(Note4)	0.55%
4	Sunon Electronics	Sunonwealth Electric Machine	2	Sales	292,556	(Note4)	2.72%
	Philippines Corp.	Industry Co., Ltd.		Accounts receivable	76,656		0.54%

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)

SEPTEMBER 30, 2024

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

				Original Investment Amount		Balance as of September 30, 2024
Investor Company	Investee Company	Location	Main Businesses and Products	As of September 30, 2024	As of December 31, 2023	Shares (In Thousands)	Percentage of Ownership	Carrying Value	Net Income (Loss) of the Investee	Share of Profit/Loss of Investee	Remark
Sunonwealth Electric Machine Industry Co.,	Successful Century Co., Ltd.	British Virgin Islands	Investments	1,136,933	1,136,933	33,880	100.00%	1,648,398	190,249	198,994	-
	BVI Sunon International Limited	British Virgin Islands	Investments	510,928	592,197	-	100.00%	1,234,232	445,906	445,633	-
	Sunon INC	USA	Manufacturing and sales of fans	49,140	49,140	150	100.00%	142,619	(23,473)	(25,010)	-
	Sunon SAS	France	Manufacturing and sales of fans	16,127	16,127	50	100.00%	89,079	2,414	507	-
	Sunonwealth Electric Machine Ind.(H.K.) Ltd.	Hong Kong	Manufacturing and sales of fans	3,428	3,428	800	99.99%	1,868	(62)	(62)	-
Ltd.	Sunon Corporation	Japan	Manufacturing and sales of fans	4,470	4,470	4	100.00%	1,630	(57)	(57)	-
	Sunon Electronics India Private Limited	India	Manufacturing and sales of fans	4,880	4,880	1,100	99.99%	5,129	737	737	-
	Sunon Electronics Philippines Corp.	Philippines	Manufacturing and sales of fans	325,108	325,108	5,773	99.99%	193,623	(19,362)	(21,727)	-
	Sunon Properties Philippines Corp.	Philippines	Real estate development and investment	948,195	461,445	16,435	99.99%	876,856	(28,872)	(28,872)	-
			Total					4,193,434	567,480	570,143

					Original Investment Amount		Balance as of September	30, 2024
Investor Company	Investee Company	Location	Main Businesses and Products	As of September 30, 2024	As of December 31, 2023	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.	Sunon Electronic (Kunshan) Co., Ltd.	China	Manufacturing and selling of fans	USD 34,431	USD 34,431	-	100.00%	USD 54,166	USD 5,940	USD 5,940	-
	Suzhou Shengyixing Heat Transfer Technology Co., Ltd.	China	Manufacturing and selling of cooling equipment	RMB 6,188	RMB 6,188	-	49.00%	RMB 3,431	RMB (2,868)	RMB (1,405)	-
Sunon Electronic	Beihai Li Zhun Electronics Co., Ltd.	China	Manufacturing and selling of fans	RMB 20,000	RMB 20,000	-	33.33%	RMB 45,843	RMB 48,647	RMB 16,216	-
(Kunshan) Co., Ltd.	Kunshan Fengxinrui Electronic Technology Co., Ltd.	China	Manufacturing and selling of fans and type electronic parts	RMB 500	-	-	25.00%	RMB 464	RMB (146)	RMB (36)	-
BVI Sunon	Sunon Electronic (Foshan) Co., Ltd.	China	General investment and trade	RMB 390	RMB 20,298	-	100.00%	RMB 95,160	RMB 32,463	RMB 32,463	-
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%	RMB 205,362	RMB 66,485	RMB 66,485	-
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%	RMB 91,687	RMB 48,647	RMB 32,431	-
Sunon SAS	Sunon Deutschland GmbH	Germany	Sales of fans	EUR 25	EUR 25	-	100.00%	EUR 215	EUR 120	EUR 120	-

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

Table 7

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

SEPTEMBER 30, 2024

(1) Mainland Investment Information:

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

				Accumulated		Investment Flows	Accumulated Outflow of	Net Income			Carrying	Accumulated Inward
Investee Company	Main Businesses and Products	Total Amount of Paid-in Capital	Method of Investment (Note 1)	Outflow of Investment from Taiwan as of January 1, 2024	Outflow	Inflow	Investment from Taiwan as of September 30, 2024	(Loss) of the Investee Company	Percentage of Ownership	Share of Profit/Loss (Note 2)	Amount as of September 30, 2024	Remittance of Earnings as of September 30, 2024
Sunon Electronic (Kunshan) Co., Ltd.	Manufacturing and selling of fans	NTD1,148,456 (USD 34,431) (Note 6)	(2)	NTD 1,136,673 (USD 33,880)	-	-	NTD 1,136,673 (USD 33,880)	NTD 190,346 (USD 5,940)	100%	NTD 190,346 (USD 5,940) (2).B	NTD 1,714,362 (USD 54,166)	NTD 1,164,207 (USD 38,274)
Sunon Electronic (Foshan) Co., Ltd.	General investment and trade	NTD 1,617 (USD 50) (Note 7)	(2)	NTD 237,078 (USD 7,180)	-	NTD 81,269 (USD 2,550)	NTD 155,809 (USD 4,630)	NTD 146,335 (RMB 32,463)	100%	NTD 146,335 (RMB 32,463) (2).C	NTD 429,810 (RMB 95,160)	NTD 769,287 (USD 25,655)
Sunon Electronic (Bei Hai) Co., Ltd.	Manufacturing and selling of new type electronic parts	NTD 293,115 (USD 10,000)	(2)	NTD 293,115 (USD 10,000)	-	-	NTD 293,115 (USD 10,000)	NTD 299,699 (RMB 66,485)	100%	NTD 299,699 (RMB 66,485) (2).B	NTD 927,557 (RMB 205,362)	NTD 1,358,016 (USD 44,205)
Suzhou Shengyixing Heat Transfer Technology Co., Ltd.	Manufacturing and selling of cooling equipment	NTD 51,983 (RMB 12,000)	(3)	- (Note 5)	-	-	- (Note 5)	NTD -12,929 (RMB -2,868)	49%	NTD -6,335 (RMB -1,405) (2).C	NTD 15,498 (RMB 3,431)	-
Beihai Li Zhun Electronic Co., Ltd.	Manufacturing and selling of fans	NTD 265,311 (RMB 60,000)	(3)	- (Note 8)	-	-	- (Note 8)	NTD 219,290 (RMB 48,647)	100%	NTD 219,290 (RMB 48,647) (2).C	NTD 621,183 (RMB 137,530)	-
Kunshan Fengxinrui Electronic Technology Co., Ltd.	Manufacturing and selling of fans and type electronic parts	NTD 9,116 (RMB 2,000)	(3)	- (Note 5)	-	-	- (Note 5)	NTD -658 (RMB -146)	25%	NTD -164 (RMB -36) (2).C	NTD 2,094 (RMB 464)	-

Accumulated Investment in Mainland China as of September 30, 2024	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
NTD 1,136,673 (USD 33,880) NTD 155,809 (USD 4,630) NTD 293,115 (USD 10,000)	USD 34,000 USD 5,450 USD 10,000	(Note 4)

Note: Gain and loss on investment are translated using average exchange rates for the three months ended September 30, 2024 (USD:NTD 1: 32.047; CYN:NTD 1: 4.5078). Additions and ending balance are translated using the exchange rates as at September 30, 2024 (USD:NTD 1: 31.65; CYN:NTD 1: 4.5167)

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 6);
• (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 September 30, 2024 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: None.
• 1. Endorsement and guarantee provided by the Company for investees in China: Table 1 attached in Note 13.
• 1. Significant transactions between the Company and investees in China: Table 3 attached ~ Table 5 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 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. The Board's of directors of Sunon Electronic (Foshan) Co., Ltd. approved in June 2023 to reduce capital by cash return for USD 2,000 thousand. Issued capital after capital redaction was USD 2,600 thousand. Company registration was completed. The Board's of directors of Sunon Electronic (Foshan) Co., Ltd. approved in May 2024 to reduce capital by cash return for USD 2,550 thousand. Issued capital after capital redaction was USD 50 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

SEPTEMBER 30, 2024

		(Unit: share)
Shares Name of Major Shareholder	Number of Shares	Percentage of Ownership (%)
Yo Yuan Investment Corporation	15,000,000	5.48%
Fu-Ing Hong Chen	14,707,000	5.37%

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 September 30, 2024. 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.

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 Group'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 September 30, 2024	Great China	Europe and North America	Other Areas	Elimination	Total
Sales from external customers	\$3,836,727	\$193,842	\$ -	\$ -	\$4,030,569
Sales among inter-segment	2,618,899	2	129,027	(2,747,928)	-
Total sales	\$6,455,626	\$193,844	\$129,027	(\$2,747,928)	\$4,030,569
Operating profit (loss)	\$651,690	(\$443)	(\$22,978)	(\$176,579)	\$451,690

a. Total reporting segment sales should eliminate inter-segment sales of \$2,747,928 thousand.

b. Income tax expense of \$102,594 thousand is not included in segment profit (loss).

(In thousands)

Three Months Ended September 30, 2023	Great China	Europe and North America	Other Areas	Elimination	Total
Sales from external customers	\$3,045,973	\$247,631	\$ -	\$ -	\$3,293,604
Sales among inter-segment	2,355,663	64	27,413	(2,383,140)	-
Total sales	\$5,401,636	\$247,695	\$27,413	(\$2,383,140)	\$3,293,604
Operating profit (loss)	\$802,951	\$6,497	(\$16,364)	(\$271,079)	\$522,005

• a. Total reporting segment sales should eliminate inter-segment sales of \$2,383,140 thousand.
• b. Income tax expense of \$136,047 thousand is not included in segment profit (loss).

(In thousands)

	Europe and North
Great China	America	Other Areas	Elimination	Total
\$10,244,476	\$523,051	\$ -	\$ -	\$10,767,527
7,409,983	190	292,556	(7,702,729)	-
\$17,654,459	\$523,241	\$292,556	(\$7,702,729)	\$10,767,527
\$2,077,038	(\$20,155)	(\$47,439)	(\$589,020)	\$1,420,424
\$ -	\$ -	\$ -	\$ -	\$14,113,331
\$ -	\$ -	\$ -	\$ -	\$6,661,502

• a. Total reporting segment sales should eliminate inter-segment sales of \$7,702,729 thousand.
• b. Income tax expense of \$365,731 thousand is not included in segment profit (loss).

					(In thousands)
Nine Months Ended September 30, 2023	Great China	Europe and North America	Other Areas	Elimination	Total
Sales from external customers	\$8,795,485	\$853,266	\$ -	\$ -	\$9,648,751
Sales among inter-segment	7,000,183	64	72,513	(7,072,760)	-
Total sales	\$15,795,668	\$853,330	\$72,513	(\$7,072,760)	\$9,648,751
Operating profit (loss)	\$2,169,138	\$78,435	(\$47,063)	(\$775,182)	\$1,425,328
Segment assets	\$ -	\$ -	\$ -	\$ -	\$13,018,936
Segment liabilities	\$ -	\$ -	\$ -	\$ -	\$5,974,110

a. Total reporting segment sales should eliminate inter-segment sales of \$7,072,760 thousand.

b. Income tax expense of \$329,791 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.