Sunplus Technology Company Limited and Subsidiaries

Consolidated Financial Statements for the Years Ended December 31, 2023 and 2022 and Independent Auditors’ Report

DECLARATION OF CONSOLIDATION OF FINANCIAL STATEMENTS OF AFFILIATES

The Company required to be included in the consolidated financial statements of affiliates in accordance with the “Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises” for the year ended December 31, 2023 are all the same as the companies required to be included in the consolidated financial statements of parent and subsidiary companies as provided in International Financial Reporting Standard No. 10 “Consolidated Financial Statements”. Relevant information that should be disclosed in the consolidated financial statements of affiliates has all been disclosed in the consolidated financial statements of parent and subsidiary companies. Hence, we do not prepare a separate set of consolidated financial statements of affiliates.

Very truly yours,

Sunplus Technology Company Limited

CHOU-CHYE HUANG Chairman

March 13, 2024

==> picture [156 x 46] intentionally omitted <==

==> picture [129 x 142] intentionally omitted <==

INDEPENDENT AUDITORS’ REPORT

The Board of Directors and Shareholders Sunplus Technology Company Limited

Opinion

We have audited the accompanying consolidated financial statements of Sunplus Technology Company Limited and its subsidiaries, which comprise the consolidated balance sheets as of December 31, 2023 and 2022, and the consolidated statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes to the consolidated financial statements, including material accounting policy information (collectively referred to as the “consolidated financial statements”).

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of Sunplus Technology Company Limited and its subsidiaries as of December 31, 2023 and 2022, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and the Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of Sunplus Technology Company Limited and its subsidiaries in accordance with The Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements for the year ended December 31, 2023. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

The key audit matter identified in Sunplus Technology Company Limited and its subsidiaries’ consolidated financial statements for the year ended December 31, 2023 is as follows:

Occurrence of Revenue from Specific Customers

Integrated circuit chip sales accounted for 93% of Sunplus Technology Company Limited and its subsidiaries’ total revenue. Among them revenue declined in 2023, some of the customers whose revenue has grown significantly and significant amount carry a higher risk related to the occurrence of sales revenue. Therefore, we considered the occurrence of revenue as a key audit matter. For detailed disclosure of revenue, refer to Notes 4 and 23 to the accompanying consolidated financial statements.

Our audit procedures performed in respect of the above key audit matter included the following:

We obtained an understanding of the related internal control and operating procedures in Sunplus Technology Company Limited and its subsidiaries’ sales transaction cycle, and we evaluated and confirmed the operating effectiveness of the related internal control and operating procedures.
We selected samples from the sales details, and we examined customers’ original orders, sales electronic orders, delivery orders, logistics receipt documents or export declaration, and sales invoices for any abnormalities and confirmed that sales revenue did occur .

Other Matter

We have also audited the accompanying financial statements of Sunplus Technology Company Limited as of and for the years ended December 31, 2023 and 2022 on which we have issued an unmodified opinion.

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

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

Those charged with governance, including the audit committee, are responsible for overseeing Sunplus Technology Company Limited and its subsidiaries’ financial reporting process.

Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements

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

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

Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of Sunplus Technology Company Limited and its subsidiaries’ internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
3 -
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on Sunplus Technology Company Limited and its subsidiaries’ ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause Sunplus Technology Company Limited and its subsidiaries to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient and appropriate audit evidence regarding the financial information of entities or business activities within Sunplus Technology Company Limited and its subsidiaries to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision, and performance of the group audit. We remain solely responsible for our audit opinion.

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

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements for the year ended December 31, 2023 and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partners on the audits resulting in this independent auditors’ report are Tung-Hui Yeh and Ya-Yun Chang.

Deloitte & Touche Taipei, Taiwan Republic of China

March 13, 2024

Notice to Readers

The accompanying consolidated financial statements are intended only to present the consolidated financial position, financial performance and cash flows in accordance with accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to audit such consolidated financial statements are those generally applied in the Republic of China.

For the convenience of readers, the independent auditors’ report and the accompanying consolidated financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language independent auditors’ report and consolidated financial statements shall prevail.

SUNPLUS TECHNOLOGY COMPANY LIMITED AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2023 AND 2022 (In Thousands of New Taiwan Dollars)

ASSETS CURRENT ASSETS Cash and cash equivalents (Notes 4 and 6) Financial assets at fair value through profit or loss - current (Notes 4 and 7) Notes receivable and trade receivables, net (Notes 4, 5, 9, 23 and 33) Other receivables (Notes 4, 9 and 33) Inventories (Notes 4 and 10) Other financial assets - current (Note 17) Other current assets (Notes 17 and 33) Total current assets NON-CURRENT ASSETS Financial assets at fair value through profit or loss - non-current (Notes 4 and 7) Financial assets at fair value through other comprehensive income - non-current (Notes 4 and 8) Investments accounted for using the equity method (Notes 4 and 12) Property, plant and equipment (Notes 4, 13 and 34) Right-of-use assets (Notes 4 and 14) Investment properties (Notes 4 and 15) Intangible assets (Notes 4 and 16) Deferred tax assets (Notes 4 and 25) Net defined benefit assets - non-current (Notes 4 and 21) Other financial assets - non-current (Notes 17 and 34) Other non-current assets (Note 17) Total non-current assets TOTAL LIABILITIES AND EQUITY CURRENT LIABILITIES Short-term borrowings (Note 18) Contract liabilities - current (Note 24) Accounts payable (Note 19) Current tax liabilities (Notes 4 and 25) Lease liabilities - current (Notes 4 and 14) Deferred revenue - current (Notes 4, 20 and 28) Current portion of long-term bank borrowings (Note 18) Other current liabilities (Note 20) Total current liabilities NON-CURRENT LIABILITIES Long-term borrowings (Note 18) Lease liabilities - non-current (Notes 4 and 14) Deferred revenue - non-current (Notes 4, 20 and 28) Net defined benefit liabilities - non-current (Notes 4 and 21) Guarantee deposits Other liabilities (Note 20) Total non-current liabilities Total liabilities EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY (Notes 4, 22 and 30) Share capital Ordinary shares Capital surplus Retained earnings Legal reserve Special reserve (Accumulated deficit) unappropriated earnings Total retained earnings Other equity Treasury shares Total equity attributable to owners of the Company NON-CONTROLLING INTERESTS (Notes 4, 12, 22 and 30) Total equity TOTAL		2023		2022
		Amount % $ 4,091,218 29 1,062,950 8 805,983 6 70,972 1 1,366,297 10 29,077 - 69,217 - 7,495,714 54 1,693,706 12 379,853 3 898,833 7 1,811,640 13 189,690 1 805,213 6 199,006 1 57,897 - 40,513 - 242,831 2 141,135 1 6,460,317 46 $ 13,956,031 100 $ 27,635 - 29,544 - 331,737 2 154,794 1 7,425 - 1,885 - 270,295 2 891,419 7 1,714,734 12 929,705 7 192,545 2 52,012 - 18,414 - 248,452 2 888 - 1,442,016 11 3,156,750 23 5,919,949 43 1,160,931 8 1,898,136 14 180,682 1 (486,919) (4) 1,591,899 11 (124,159) (1) (63,401) - 8,485,219 61 2,314,062 16 10,799,281 77 $ 13,956,031 100		Amount % $ 4,427,919 29 678,017 5 887,148 6 139,427 1 2,246,656 15 48,018 - 103,069 1 8,530,254 57 1,524,969 10 295,555 2 932,789 6 1,930,269 13 202,111 1 890,156 6 248,585 2 59,008 - 31,993 - 230,100 2 144,958 1 6,490,493 43 $ 15,020,747 100 $ 42,000 - 53,462 1 420,335 3 145,222 1 13,071 - 1,921 - - - 1,063,701 7 1,739,712 12 1,000,000 7 197,690 1 54,905 - 18,277 - 268,638 2 6,597 - 1,546,107 10 3,285,819 22 5,919,949 39 1,197,373 8 1,870,234 12 239,203 2 279,413 2 2,388,850 16 (180,683) (1) (63,401) - 9,262,088 62 2,472,840 16 11,734,928 78 $ 15,020,747 100

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

SUNPLUS TECHNOLOGY COMPANY LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

NET OPERATING REVENUE (Notes 4, 23 and 33) OPERATING COSTS (Notes 10 and 24) GROSS PROFIT OPERATING EXPENSES (Notes 24 and 33) Selling and marketing expenses General and administrative expenses Research and development expenses Total operating expenses OTHER OPERATING INCOME AND EXPENSES (LOSS) PROFIT FROM OPERATIONS NON-OPERATING INCOME AND EXPENSES (Notes 4, 12, 24, 28 and 33) Interest income Other income Other gains and losses Finance costs Share of profit or loss of associates Total non-operating income and expenses (LOSS) PROFIT BEFORE INCOME TAX INCOME TAX EXPENSE (Notes 4 and 25) NET (LOSS) PROFIT FOR THE YEAR OTHER COMPREHENSIVE INCOME (LOSS) Items that will not be reclassified subsequently to profit or loss (Notes 4 and 22): Remeasurement of defined benefit plans Unrealized gain (loss) on investments in equity instruments at fair value through other comprehensive income Share of the other comprehensive income (loss) of associates accounted for using the equity method		2023 Amount % $ 5,535,421 100 3,011,176 54 2,524,245 46 218,384 4 512,457 9 2,040,283 37 2,771,124 50 (475) - (247,354) (5) 59,068 1 119,955 2 132,548 3 (41,142) (1) (109,245) (2) 161,184 3 (86,170) (2) 135,103 2 (221,273) (4) 4,215 - 98,531 2 17,355 -		2022
				Amount % $ 6,705,708 100 3,404,941 51 3,300,767 49 239,183 4 616,032 9 2,153,458 32 3,008,673 45 (4,204) - 287,890 4 38,307 - 281,389 4 307,202 5 (17,139) - (15,299) - 594,460 9 882,350 13 211,893 3 670,457 10 26,374 - (5,975) - (22,533) - (Continued)

SUNPLUS TECHNOLOGY COMPANY LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

Items that may be reclassified subsequently to profit or loss (Notes 4 and 22): Exchange differences on translation of the financial statements of foreign operations Share of other comprehensive (loss) income of associates accounted for using the equity method Other comprehensive income for the year, net of income tax TOTAL COMPREHENSIVE (LOSS) INCOME FOR THE YEAR NET (LOSS) PROFIT ATTRIBUTABLE TO: Owners of the Company Non-controlling interests TOTAL COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO: Owners of the Company Non-controlling interests (LOSS) EARNINGS PER SHARE (Note 26) Basic Diluted		2023 Amount % $ (30,016) - (2,420) - 87,665 2 $ (133,608) (2) $ (493,147) (9) 271,874 5 $ (221,273) (4) $ (404,437) (7) 270,829 5 $ (133,608) (2) $ (0.84) $ (0.84)		2022
				Amount % $ 114,760 2 768 - 113,394 2 $ 783,851 12 $ 215,899 3 454,558 7 $ 670,457 10 $ 325,524 5 458,327 7 $ 783,851 12 $ 0.37 $ 0.37

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

(Concluded)

SUNPLUS TECHNOLOGY COMPANY LIMITED AND SUBSIDIARIES

STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022 (In Thousands of New Taiwan Dollars)

				Equity Attribut	able to Owners of the C	ompany
Share Capital Issued a	nd Outstanding Amount $ 5,919,949 - - - - - - - - - - - - - - 5,919,949 - - - - - - - - - - - - $ 5,919,949	Capital Surplus $ 1,223,544 - - - 27,879 (37,888 ) - (922 ) (22,360 ) - - - 7,120 - - 1,197,373 - - - 21,249 (45,584 ) - (14,244 ) - - - 2,137 - $ 1,160,931		Retained Earnings	Unappropriated Earnings (Accumulated N Deficit) $ 1,249,574 (124,955 ) 21,875 (1,146,102 ) - - - - - 215,899 26,534 242,433 - - 36,588 279,413 (27,902 ) 58,521 (309,613 ) - - - - (493,147 ) 5,809 (487,338) - - $ (486,919)	Equity Directly Associated with on-current Assets Held for Sale $ 21,517 - - - (21,517 ) - - - - - - - - - - - - - - - - - - - - - - - $ -		Other Eq	uity Unrealized Gain (Loss) on inancial Assets at Fair Value Through Other Comprehensive Income $ 20,309 - - - - - - - - - (27,927) (27,927) - - (36,588) (44,206 ) - - - - - - - - 110,217 110,217 - - $ 66,011	Treasury Shares $ (63,401 ) - - - - - - - - - - - - - - (63,401 ) - - - - - - - - - - - - $ (63,401)
							F	Exchange Differences on F Translating the Financial Statements of oreign Operations $ (259,512 ) - - - - - 12,017 - - - 111,018 111,018 - - - (136,477 ) - - - - - (26,377 ) - - (27,316) (27,316) - - $ (190,170)
			Legal Reserve $ 1,745,279 124,955 - - - - - - - - - - - - - 1,870,234 27,902 - - - - - - - - - - - $ 1,898,136	Special Reserve $ 261,078 - (21,875 ) - - - - - - - - - - - - 239,203 - (58,521 ) - - - - - - - - - - $ 180,682
Share (Thousands) 591,995 - - - - - - - - - - - - - - 591,995 - - - - - - - - - - - - 591,995

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

SUNPLUS TECHNOLOGY COMPANY LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022 (In Thousands of New Taiwan Dollars)

CASH FLOWS FROM OPERATING ACTIVITIES (Loss) income before income tax Adjustments for: Depreciation expense Amortization expense Net (gain) loss on fair value change of financial assets at FVTPL Finance costs Interest income Dividend income Compensation costs of share-based payments Share of loss of associates Gain on disposal of property, plant and equipment Loss on disposal of intangible assets Gain on disposal of subsidiaries Gain on disposal of associates Impairment loss recognized on financial assets Impairment loss recognized on non-financial assets Unrealized gain on transactions with associates Net (gain) loss on foreign currency exchange Changes in operating assets and liabilities: Decrease in notes receivable and trade receivables Decrease (increase) in other receivables Decrease (increase) in inventories Decrease in other current assets Increase in net defined benefits assets - non-current (Decrease) increase in contract liabilities Decrease in accounts payables Decrease in deferred revenue Decrease in other current liabilities Increase in net defined benefits liabilities - non-current Cash generated from (used in) operations Interest received Dividends received Interest paid Income tax paid Net cash generated from (used in) operating activities CASH FLOWS FROM INVESTING ACTIVITIES Purchase of financial assets at fair value through other comprehensive income Proceeds from the sale of financial assets at fair value through other comprehensive income Purchase of financial assets at fair value through profit or loss	2023 $ (86,170) 380,370 118,821 (98,133) 41,142 (59,068) (35,892) 19,323 109,245 (183) 658 (19,485) - 6,009 - (1,256) 22,982 51,409 66,602 880,359 28,718 (8,520) (23,893) (80,621) (1,906) (160,832) 4,352 1,154,031 54,509 52,351 (36,908) (124,420) 1,099,563 (15,290) 27,378 (2,181,488)	2022 $ 882,350 344,059 139,283 262,869 17,139 (38,307) (117,124) 109,586 15,299 (16) 4,220 (71,274) (449,000) 6,826 460 (1,256) 4,039 385,513 (41,613) (779,094) 3,623 (27,440) 23,197 (499,962) (1,916) (321,727) 24,939 (125,327) 36,777 134,419 (19,915) (341,684) (315,730) (127,510) 44,259 (1,475,697) (Continued)

SUNPLUS TECHNOLOGY COMPANY LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022 (In Thousands of New Taiwan Dollars)

Proceeds from the sale of financial assets at fair value through profit or loss Acquisition of associates Proceeds from disposal of associates Proceeds from disposal of subsidiaries Payments for property, plant and equipment Proceeds from the disposal of property, plant and equipment Increase in refundable deposits Decrease in refundable deposits Payments for intangible assets Decrease on other financial assets Net cash (used in) generated from investing activities CASH FLOWS FROM FINANCING ACTIVITIES Repayments of short-term borrowings Proceeds from long-term borrowings Repayments of long-term borrowings Proceeds of guarantee deposits received Refund of guarantee deposits received Repayment of principal portion of lease liabilities Decrease in other liabilities Cash dividends paid Dividends paid to non-controlling interests Decrease in non-controlling interests Net cash used in financing activities EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCE OF CASH HELD IN FOREIGN CURRENCIES NET DECREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR	2023 $ 1,727,001 (54,043) - - (187,263) 366 - 138 (86,586) 2,178 (767,609) (14,365) 200,000 - 36,993 (60,975) (12,500) - (353,060) (459,643) (3,533) (667,083) (1,572) (336,701) 4,427,919 $ 4,091,218	2022 $ 2,414,358 - 535,987 83,827 (267,590) 352 (3,228) 761 (62,958) 39,812 1,182,373 (101,773) 1,000,000 (430,000) 32,925 (42,046) (10,205) (10,039) (1,176,870) (557,998) (19,384) (1,315,390) 41,098 (407,649) 4,835,568 $ 4,427,919

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

(Concluded)

10 -

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

SUNPLUS TECHNOLOGY COMPANY LIMITED AND SUBSIDIARIES

1. GENERAL INFORMATION

Sunplus Technology Company Limited (the “Company”) was established in August 1990 and moved to Hsinchu Science Park in October 1993. It designs, produces, tests and sells various integrated circuits (ICs); it researches, developes, sells various software application and silicon intellectual property; it engages in the tradings and agency business of various integrated circuits. Sunplus’ shares have been listed on the Taiwan Stock Exchange since January 2000. Some of its shares have been issued in the form of global depositary receipts (GDRs), which have been listed on the London Stock Exchange since March 2001. The procedures for terminating GDRs were completed on November 10, 2022 (refer to Note 23).

Following is a diagram of the relationship and ownership percentages between Sunplus and its subsidiaries (collectively, the “Company”) as of December 31, 2023:

==> picture [399 x 276] intentionally omitted <==

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

Sunplus
13.69%
55%
1.84%
100% 100% 100% 100% 100% 50.08% 34.30% 100%
Award Glory Ltd. Management Consulting Sunplus Ventureplus Group Inc. SunplusVentureCapital Investment Lin Shin mMobile Sunplus Technology Innovation Sunplus Generalplus Technology Investments Wei-Young
100% 100% 42.08% 5.00% 100%
Sunny Fancy Ltd. Mauritius Inc. Ventureplus International(SGeneralplus
amoa) Inc.
7.64% Sunplus 100%
100% 100% 100% mMedia Generalplus
Worldplus Holdings L.L.C Giant Rock Inc. Cayman Inc. Ventureplus 2.60% (Mauritius) Inc.
64.10%
100% 100%
100% 35.90% 100% 100% 100% 100% Generalplus Generalplus
(Shenzhen) Worldplus Sunplus App Sunplus-EHue Beijing (Shenzhen) Prof-tek Sunplus Shanghai Sunplus SunMedia Shenzhen HK 89.76%
100%
Chongqing
CQPlus1
----- End of picture text -----

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

2. APPROVAL OF FINANCIAL STATEMENTS

The consolidated financial statements were approved by the Company’s board of directors and authorized for issue on March 13, 2024.

11 -

3. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS

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

The initial application of the IFRS Accounting Standards endorsed and issued into effect by the FSC did not have material impact on the Company’s accounting policies.

b. The IFRS Accounting Standards endorsed by the FSC for application starting from 2024

New, Amended and Revised Standards and Interpretations Amendments to IFRS 16 “Leases Liability in a Sale and Leaseback” Amendments to IAS 1 “Classification of Liabilities as Current or Non-current” Amendments to IAS 1 “Non-current Liabilities with Covenants” Amendments to IAS 7 and IFRS 7“Supplier Finance Arrangements”	Effective Date Announced by International Accounting Standards Board (IASB) (Note 1)
	January 1, 2024 (Note 2) January 1, 2024 January 1, 2024 January 1, 2024 (Note 3)

Note 1: Unless stated otherwise, the above IFRS Accounting Standards are effective for annual reporting periods beginning on or after their respective effective dates.
Note 2: A seller-lessee shall apply the Amendments to IFRS 16 retrospectively to sale and leaseback transactions entered into after the date of initial application of IFRS 16.
Note 3: The amendments provide some transition relief regarding disclosure requirements.
1) Amendments to IFRS 16 “Leases Liability in a Sale and Leaseback”

The amendments clarify that the liability that arises from a sale and leaseback transaction - that satisfies the requirements in IFRS 15 to be accounted for as a sale - is a lease liability to which IFRS 16 applies. However, if the lease in a leaseback that includes variable lease payments that do not depend on an index or rate, the seller-lessee shall measure lease liabilities arising from a leaseback in such a way that it does not recognize any amount of the gain or loss that relates to the right of use it retains. The seller-lessee subsequently recognizes in profit or loss the difference between the payments made for the lease and the lease payments that reduce the carrying amount of the lease liability.

2) Amendments to IAS 1 “Classification of Liabilities as Current or Non-current” (referred to as the “2020 amendments”) and “Non-current Liabilities with Covenants” (referred to as the “2022 amendments”)

The 2020 amendments clarify that for a liability to be classified as non-current, the Company shall assess whether it has the right at the end of the reporting period to defer settlement of the liability for at least twelve months after the reporting period. If such rights exist at the end of the reporting period, the liability is classified as non-current regardless of whether the Company will exercise that right.

The 2020 amendments also stipulate that, if the right to defer settlement is subject to compliance with specified conditions, the Company must comply with those conditions at the end of the reporting period even if the lender does not test compliance until a later date. The 2022 amendments further clarify that only covenants with which an entity is required to comply on or before the

12 -

reporting date should affect the classification of a liability as current or non-current. Although the covenants to be complied with within twelve months after the reporting period do not affect the classification of a liability, the Company shall disclose information that enables users of financial statements to understand the risk of the Company, which may have difficulty complying with the covenants and repaying its liabilities within twelve months after the reporting period.

The 2020 amendments stipulate that, for the purpose of liability classification, the aforementioned settlement refers to a transfer of cash, other economic resources or the Company’s own equity instruments to the counterparty that results in the extinguishment of the liability. However, if the terms of a liability that, at the option of the counterparty, result in its settlement by a transfer of the Company’s own equity instruments, and if such an option is recognized separately as equity in accordance with IAS 32 “Financial Instruments: Presentation”, the aforementioned terms would not affect the classification of the liability.

3) Amendments to IAS 7 and IFRS 7 “Supplier Finance Arrangements”

Supplier finance arrangements are characterized by one or more finance providers offering to pay amounts an entity owes its suppliers and the entity agreeing to pay according to the terms andconditions of the arrangements at the same date as, or a date later than, the suppliers are paid. The amendments stipulate that the Company shall disclose the relevant information about its supplier finance arrangements that enables users of financial statements to assess the effects of those arrangements on the Company’s liabilities and cash flows and on the Company’s exposure to liquidity risk.

As of the date the consolidated financial statements were authorized for issue, the Company has assessed that the application of other standards and interpretations will not have a material impact on the Company’s financial position and financial performance.

c. The IFRS Accounting Standards in issue but not yet endorsed and issued into effect by the FSC

New, Amended and Revised Standards and Interpretations Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture” IFRS 17 “Insurance Contracts” Amendments to IFRS 17 Amendments to IFRS 17 “Initial Application of IFRS 9 and IFRS 17 - Comparative Information” Amendments to IAS 21 “Lack of Exchangeability”	Effective Date Announced by IASB (Note 1)
	To be determined by IASB January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2025 (Note 2)

Note 1: Unless stated otherwise, the above IFRSs are effective for annual reporting periods beginning on or after their respective effective dates.
Note 2: An entity shall apply those amendments for annual reporting periods beginning on or after January 1, 2025. Upon initial application of the amendments, the entity recognizes any effect as an adjustment to the opening balance of retained earnings. When the entity uses a presentation currency other than its functional currency, it shall, at the date of initial application, recognize any effect as an adjustment to the cumulative amount of translation differences in equity.
1) Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture”

The amendments stipulate that, when the Company sells or contributes assets that constitute a business (as defined in IFRS 3) to an associate or joint venture, the gain or loss resulting from the

13 -

transaction is recognized in full. Also, when the Company loses control of a subsidiary that contains a business but retains significant influence or joint control, the gain or loss resulting from the transaction is recognized in full.

Conversely, when the Company sells or contributes assets that do not constitute a business to an associate or joint venture, the gain or loss resulting from the transaction is recognized only to the extent of the Company’s interest as an unrelated investor in the associate or joint venture, i.e., the Company’s share of the gain or loss is eliminated. Also, when the Company loses control of a subsidiary that does not contain a business but retains significant influence or joint control over an associate or a joint venture, the gain or loss resulting from the transaction is recognized only to the extent of the Company’s interest as an unrelated investor in the associate or joint venture, i.e., the Company’s share of the gain or loss is eliminated.

2) Amendments to IAS 21 “Lack of Exchangeability”

The amendments stipulate that a currency is exchangeable into another currency when an entity is able to obtain the other currency within a time frame that allows for a normal administrative delay and through a market or exchange mechanism in which an exchange transaction would create enforceable rights and obligations. An entity shall estimate the spot exchange rate at a measurement date when a currency is not exchangeable into another currency to reflect the rate at which an orderly exchange transaction would take place at the measurement date between market participants under prevailing economic conditions. In this situation, the Company shall disclose information that enables users of its financial statements to understand how the currency not being exchangeable into the other currency affects, or is expected to affect, its financial performance, financial position and cash flows.

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

4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

a. Statement of Compliance

The consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, other regulations and IFRS Accounting Standards as endorsed and issued into effect by the FSC.

b. Basis of preparation

The consolidated financial statements have been prepared on the historical cost basis except for financial instruments that are measured at fair values, and net defined benefit liabilities which are measured at the present value of the defined benefit obligation less the fair value of plan assets.

The fair value measurements which are grouped into Levels 1 to 3 based on the degree to which the fair value measurement inputs are observable and based on the significance of the inputs to the fair value measurement in its entirety, which are described as follows:

1) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities;
2) Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and
3) Level 3 inputs are unobservable inputs for the asset or liability.
14 -
c. Classification of current and non-current assets and liabilities

Current assets include:

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

Current liabilities include:

1) Liabilities held primarily for the purpose of trading;
2) Liabilities due to be settled within 12 months after the reporting period; and
3) Liabilities for which the Company does not have an unconditional right to defer settlement for at least 12 months after the reporting period.

Assets and liabilities that are not classified as current are classified as non-current.

d. Basis of consolidation

The consolidated financial statements incorporate the financial statements of Sunplus and the entities controlled by Sunplus (i.e., its subsidiaries).

Income and expenses of subsidiaries acquired or disposed of during the period are included in the consolidated statement of comprehensive income from the effective dates of acquisitions up to the effective dates of disposals, as appropriate.

When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those of the Company.

All intra-group transactions, balances, income and expenses are eliminated in full upon consolidation. Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

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

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

See Note 11 and Tables 5 and 6 for detailed information on subsidiaries (including percentages of ownership and main businesses).

15 -

e. Foreign currencies

In preparing the financial statements of each individual entity, transactions in currencies other than the entity’s functional currency (i.e., foreign currencies) are recognized at the rates of exchange prevailing at the dates of the transactions.

At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Exchange differences on monetary items arising from settlement or translation are recognized in profit or loss in the period.

Non-monetary items measured at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. Exchange differences arising on the retranslation of nonmonetary items are included in profit or loss for the period except for exchange differences arising from the retranslation of nonmonetary items in respect of which gains and losses are recognized directly in other comprehensive income, in which case, the exchange differences are also recognized directly in other comprehensive income.

Non-monetary item denominated in a foreign currency and measured at historical cost is stated at the reporting currency as originally translated from the foreign currency.

For the purpose of presenting consolidated financial statements, the financial statements of the Sunplus’ foreign operations (including subsidiaries and associates) that are prepared using functional currencies which are different from the currency of the Sunplus are translated into the presentation currency, the New Taiwan dollar, as follows: Assets and liabilities are translated at the exchange rates prevailing at the end of the reporting period; and income and expense items are translated at the average exchange rates for the period. The resulting currency translation differences are recognized in other comprehensive income (attributed to the owners of the Company and non-controlling interests as appropriate).

On the disposal of a foreign operation (i.e., a disposal of the Company’s entire interest in a foreign operation, or a disposal involving the loss of control over a subsidiary that includes a foreign operation that includes a foreign operation of which the retained interest becomes a financial asset), all of the exchange differences accumulated in equity in respect of that operation attributable to the owners of the Company are reclassified to profit or loss.

f. Inventories

Inventories consist of raw materials, supplies, finished goods and work in progress and are stated at the lower of cost or net realizable value. Inventory write-downs are made by item, except where it may be appropriate to group similar or related items. The net realizable value is the estimated selling price of inventories less all estimated costs of completion and costs necessary to make the sale. The inventories of Sunplus, Generalplus Technology, Sunplus Innovation Technology, Sunplus mMedia and Jumplux Technologyare generally recorded at standard cost. On the balance sheet date, the cost is adjusted to approximate weighted-average cost method. Other subsidiaries’ inventories are recorded at the weighted-average cost.

g. Investments in associates

An associate is an entity over which the Company has significant influence and that is not a subsidiary.

The Company uses the equity method to account for its investments in associates.

Under the equity method, investments in an associate is initially recognized at cost and adjusted thereafter to recognize the Company’s share of the profit or loss and other comprehensive income of the associate. The Company also recognizes the changes in the Company’s share of the equity of associates.

16 -

Any excess of the cost of acquisition over the Company’s share of the net fair value of the identifiable assets and liabilities of an associate at the date of acquisition is recognized as goodwill, which is included within the carrying amount of the investment and is not amortized. Any excess of the Company’s share of the net fair value of the identifiable assets and liabilities over the cost of acquisition, after reassessment, is recognized immediately in profit or loss.

When the Company subscribes for additional new shares of an associate at a percentage different from its existing ownership percentage, the resulting carrying amount of the investment differs from the amount of the Company’s proportionate interest in the associate. The Company records such a difference as an adjustment to investments with the corresponding amount charged or credited to capital surplus - changes in capital surplus from investments in associates and joint ventures accounted for using the equity method. If the Company’s ownership interest is reduced due to its additional subscription of the new shares of the associate, the proportionate amount of the gains or losses previously recognized in other comprehensive income in relation to that associate is reclassified to profit or loss on the same basis as would be required had the investee directly disposed of the related assets or liabilities. When the adjustment should be debited to capital surplus, but the capital surplus recognized from investments accounted for using the equity method is insufficient, the shortage is debited to retained earnings.

When the Company’s share of losses of an associate equals or exceeds its interest in that associate (which includes any carrying amount of the investment accounted for using the equity method and long-term interests that, in substance, form part of the Company’s net investment in the associate), the Company discontinues recognizing its share of further loss, if any. Additional losses and liabilities are recognized only to the extent that the Company has incurred legal obligations, or constructive obligations, or made payments on behalf of that associate.

The entire carrying amount of an investment (including goodwill) is tested for impairment as a single asset by comparing its recoverable amount with its carrying amount. Any impairment loss recognized is not allocated to any asset, including goodwill, that forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognized to the extent that the recoverable amount of the investment subsequently increases.

The Company discontinues the use of the equity method from the date on which its investment ceases to be an associate. Any retained investment is measured at fair value at that date, and the fair value is regarded as the investment’s fair value on initial recognition as a financial asset. The difference between the previous carrying amount of the associate attributable to the retained interest and its fair value is included in the determination of the gain or loss on disposal of the associate. The Company accounts for all amounts previously recognized in other comprehensive income in relation to that associate on the same basis as would be required had that associate directly disposed of the related assets or liabilities.

When the Company transacts with its associate, profits and losses resulting from the transactions with the associate is recognized in the Company’s consolidated financial statements only to the extent of interests in the associate that is not related to the Company.

h. Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost less accumulated depreciation and accumulated impairment loss.

The depreciation of property, plant and equipment is recognized using the straight-line method. Each significant part is depreciated separately. The estimated useful lives, residual values and depreciation methods are reviewed at the end of each reporting period, with the effects of any changes in estimates accounted for on a prospective basis.

17 -

On derecognition of an item of property, plant and equipment, the difference between the sales proceeds and the carrying amount of the asset is recognized in profit or loss.

i. Investment properties

Investment properties are properties held to earn rentals or for capital appreciation. (It includes right-of-use assets that meet the definition of investment properties.)

Investment properties are initially measured at cost, including transaction costs. Subsequent to initial recognition, investment properties are measured at cost less accumulated depreciation and accumulated impairment loss.

Depreciation is recognized using the straight-line method.

On derecognition of an investment property, the difference between the net disposal proceeds and the carrying amount of the asset is included in profit or loss.

j. Goodwill

Goodwill arising on an acquisition of a business is carried at cost as established at the date of acquisition of the business less accumulated impairment loss.

For the purposes of impairment testing, goodwill is allocated to each of the Company’s cash-generating units or groups of cash-generating units (referred to as “cash-generating units”) that are expected to benefit from the synergies of the combination.

A cash-generating unit to which goodwill has been allocated is tested for impairment annually or more frequently whenever there is an indication that the unit may be impaired, by comparing its carrying amount, including the attributed goodwill, with its recoverable amount. However, if the goodwill allocated to a cash-generating unit was acquired in a business combination during the current annual period, that unit shall be tested for impairment before the end of the current annual period. If the recoverable amount of the cash-generating unit is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then pro rata to the other assets of the unit based on the carrying amount of each asset in the unit. Any impairment loss is recognized directly in profit or loss. Any impairment loss recognized for goodwill is not reversed in subsequent periods.

k. Intangible assets

1) Intangible assets acquired separately

Intangible assets with finite useful lives that are acquired separately are initially measured at cost and subsequently measured at cost less accumulated amortization and accumulated impairment loss. Amortization is recognized on a straight-line basis. The estimated useful lives, residual values, and amortization methods are reviewed at the end of each reporting period, with the effect of any changes in the estimates accounted for on a prospective basis.

2) Derecognition of intangible assets

On derecognition of an intangible asset, the difference between the net disposal proceeds and the carrying amount of the asset is recognized in profit or loss.

18 -
l. Impairment of property, plant and equipment, right-of-use asset, and intangible assets other than goodwill

At the end of each reporting period, the Company reviews the carrying amounts of its property, plant and equipment, right-of-use asset and intangible assets, excluding goodwill, to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. Corporate assets are allocated to the individual cash-generating units on a reasonable and consistent basis of allocation.

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment at least annually and whenever there is an indication that the asset may be impaired.

The recoverable amount is the higher of fair value less costs to sell and value in use. If the recoverable amount of an asset or cash-generating unit is estimated to be less than its carrying amount, the carrying amount of the asset or cash-generating unit is reduced to its recoverable amount, with the resulting impairment loss recognized in profit or loss.

When an impairment loss is subsequently reversed, the carrying amount of the corresponding asset or cash-generating unit is increased to the revised estimate of its recoverable amount, but only to the extent of the carrying amount that would have been determined had no impairment loss been recognized for the asset or cash-generating unit in prior years. A reversal of an impairment loss is recognized in profit or loss.

m. Financial instruments

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

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issuance of financial assets and financial liabilities (other than financial assets and financial liabilities at FVTPL) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at FVTPL are recognized immediately in profit or loss.

1) Financial assets

All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis.

a) Measurement category

Financial assets are classified into the following categories: Financial assets at FVTPL, financial assets at amortized cost and investments in equity instruments at FVTOCI.

i. Financial assets at FVTPL

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

19 -

Financial assets at FVTPL are subsequently measured at fair value, and any dividends or interest earned on such financial assets are recognized in other income respectively; any remeasurement gains or losses on such financial assets are recognized and interest income, in other gains or losses. Fair value is determined in the manner described in Note 32: Financial Instruments.

ii. Financial assets at amortized cost

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

i) The financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and
ii) The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Subsequent to initial recognition, financial assets at amortized cost, including cash and cash equivalents, other financial assets, notes receivable and trade receivables, other receivables and refundable deposits, are measured at amortized cost, which equals the gross carrying amount determined using the effective interest method less any impairment loss. Exchange differences are recognized in profit or loss.

Interest income is calculated by applying the effective interest rate to the gross carrying amount of a financial asset.

Cash equivalents include time deposits with original maturities within 3 months from the date of acquisition, which are highly liquid, readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value. These cash equivalents are held for the purpose of meeting short-term cash commitments.

iii. Investments in equity instruments at FVTOCI

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

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

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

b) Impairment of financial assets

The Company recognizes a loss allowance for expected credit losses on financial assets at amortized cost (including trade receivables).

The Company always recognizes lifetime expected credit losses (ECLs) for trade receivables. For all other financial instruments, the Company recognizes lifetime ECLs when there has been a significant increase in credit risk since initial recognition. If, on the other hand, the credit risk

20 -

on a financial instrument has not increased significantly since initial recognition, the Company measures the loss allowance for that financial instrument at an amount equal to 12-month ECLs.

Expected credit losses reflect the weighted average of credit losses with the respective risks of a default occurring as the weights. Lifetime ECLs represent the expected credit losses that will result from all possible default events over the expected life of a financial instrument. In contrast, 12-month ECLs represent the portion of lifetime ECLs that is expected to result from default events on a financial instrument that are possible within 12 months after the reporting date.

The impairment loss of all financial assets is recognized in profit or loss by a reduction in their carrying amounts through a loss allowance account.

c) Derecognition of financial assets

The Company derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.

On derecognition of a financial asset at amortized cost in its entirety, the difference between the asset’s carrying amount and the sum of the consideration received and receivable is recognized in profit or loss. On derecognition of an investment in an equity instrument at FVTOCI, the difference between the asset’s carrying amount and the sum of the consideration received and receivable is recognized in profit or loss, and the cumulative gain or loss that had been recognized in other comprehensive income is transferred directly to retained earnings, without recycling through profit or loss.

2) Equity instruments

Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

Equity instruments issued by the Company are recognized at the proceeds received, net of direct issue costs.

The repurchase of the Company’s own equity instruments is recognized in and deducted directly from equity, and its carrying amounts are calculated based on weighted average by share types. No gain or loss is recognized in profit or loss on the purchase, sale, issuance or cancellation of the Company’s own equity instruments.

3) Financial liabilities

a) Subsequent measurement

All financial liabilities are measured at amortized cost using the effective interest method.

b) Derecognition of financial liabilities

The difference between the carrying amount of a financial liability derecognized and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in profit or loss.

21 -

n. Provisions

Provisions are measured at the best estimate of the discounted cash flows of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.

o. Revenue recognition

The Company identifies a contract with a customer, allocates the transaction price to the performance obligations, and recognizes revenue when performance obligations are satisfied.

Unearned receipts for merchandise sales would be recognized as contract liabilities before the Company fulfills its performance obligations.

1) Revenue from the sale of goods

Revenue from the sale of goods comes from the sale of ICs. Sales of ICs are recognized as revenue when the goods are shipped because it is the time when the customer has full discretion over the manner of distribution and the price to sell the goods, has the primary responsibility for sales to future customers, and bears the risks of obsolescence. Trade receivables are recognized concurrently.

The Company does not recognize revenue on materials delivered to subcontractors because this delivery does not involve a transfer of control.

2) Other

Other income mainly comes from software development and royalties.

p. Lease

At the inception of a contract, the Company assesses whether the contract is, or contains, a lease.

1) The Company as lessor

All leases are classified as operating leases.

When the Company subleases a right-of-use asset, the sublease is classified by reference to the right-of-use asset arising from the head lease, not with reference to the underlying asset. However, if the head lease is a short-term lease that the Company, as a lessee, has accounted for applying recognition exemption, the sublease is classified as an operating lease.

Lease payments less any lease incentives payable from operating leases are recognized as income on a straight-line basis over the terms of the relevant leases. Initial direct costs incurred in obtaining operating leases are added to the carrying amounts of the underlying assets and recognized as expenses on a straight-line basis over the lease terms.

2) The Company as lessee

The Company recognizes right-of-use assets and lease liabilities for all leases at the commencement date of a lease, except for short-term leases and low-value asset leases accounted for applying a recognition exemption where lease payments are recognized as expenses on a straight-line basis over the lease terms.

Right-of-use assets are initially measured at cost, which comprises the initial measurement of lease liabilities adjusted for lease payments made at or before the commencement date, plus any initial

22 -

direct costs incurred and an estimate of costs needed to restore the underlying assets, and less any lease incentives received. Right-of-use assets are subsequently measured at cost less accumulated depreciation and impairment losses and adjusted for any remeasurement of the lease liabilities. Right-of-use assets are presented on a separate line in the consolidated balance sheets, except for those that meet the definition of investment properties. With respect to the recognition and measurement of right-of-use assets that meet the definition of investment properties, refer to Note 4(i) for the accounting policies for investment properties.

Right-of-use assets are depreciated using the straight-line method from the commencement dates to the earlier of the end of the useful lives of the right-of-use assets or the end of the lease terms.

Lease liabilities are initially measured at the present value of the lease payments, which comprise fixed payments and variable lease payments which depend on an index or a rate. The lease payments are discounted using the interest rate implicit in a lease, if that rate can be readily determined. If that rate cannot be readily determined, the lessee’s incremental borrowing rate will be used.

Subsequently, lease liabilities are measured at amortized cost using the effective interest method, with interest expense recognized over the lease terms. When there is a change in a lease term or a change in future lease payments resulting from a change in an index or a rate used to determine those payments, the Company remeasures the lease liabilities with a corresponding adjustment to the right-of-use-assets. However, if the carrying amount of the right-of-use assets is reduced to zero, any remaining amount of the remeasurement is recognized in profit or loss. Lease liabilities are presented on a separate line in the consolidated balance sheets.

The Company requested the lessor for rent subsidy as a direct subsidy of the Covid-19 to change the lease payments. There is no substantive change to other terms and conditions. The Company elects to apply the practical expedient to all of the rent subsidy and, therefore, does not assess whether the rent subsidy are lease modifications. Instead, the Company recognizes the reduction in lease payment in profit or loss as a deduction of expenses of variable lease payments.

q. Borrowing costs

Borrowing costs are recognized in profit or loss in the period in which they are incurred.

r. Government grants

Government grants are not recognized until there is reasonable assurance that the Company will comply with the conditions attached to the grants and that the grants will be received.

Government grants related to income are recognized in other income on a systematic basis over the periods in which the Company recognizes as expenses the related costs that the grants intend to compensate.

Government grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the Company with no future related costs are recognized in profit or loss in the period in which they are received.

s. Employee benefits
1) Short-term employee benefits

Liabilities recognized in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related services.

23 -

2) Retirement benefits

Payments to defined contribution retirement benefit plans are recognized as expenses when employees have rendered service entitling them to the contributions.

Defined benefit costs (including service cost, net interest and remeasurement) under the defined benefit retirement benefit plans are determined using the projected unit credit method. Service cost (including current service cost and past service cost) and net interest on the net defined benefit liabilities (assets) are recognized as employee benefits expense in the period in which they occur, and the return on plan assets (excluding interest), is recognized in other comprehensive income in the period in which it occurs. Remeasurement recognized in other comprehensive income is reflected immediately in retained earnings and will not be reclassified to profit or loss.

Net defined benefit liabilities (assets) represent the actual deficit (surplus) in the Company’s defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any refunds from the plans or reductions in future contributions to the plans.

t. Share-based payment arrangements

Restricted shares for employees granted to employees

The fair value at the grant date of the restricted shares for employees is expensed on a straight-line basis over the vesting period, based on the Company’s best estimates of the number of shares or options that are expected to ultimately vest, with a corresponding increase in non-controlling interests. The expense is recognized in full at the grant date if the grants are vested immediately. The grant date of issued ordinary shares for cash which are reserved for employees is the date on which the board of directors approves the transaction.

When restricted shares for employees are issued, other equity - unearned employee benefits is recognized on the grant date, with a corresponding increase in capital surplus - restricted shares for employees. If restricted shares for employees are granted for consideration and the considerations received should be returned if employees resign in the vesting period, the amounts expected to be returned are recognized as payables. Dividends paid to employees on restricted shares that do not need to be returned if employees resign in the vesting period are recognized as expenses when the dividends are declared with a corresponding adjustment in retained earnings and capital surplus - restricted shares for employees.

At the end of each reporting period, the Company revises its estimate of the number of restricted shares for employees that are expected to vest. The impact of the revision of the original estimates is recognized in profit or loss such that the cumulative expenses reflect the revised estimate, with a corresponding adjustment to non-controlling interests.

u. Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

1) Current tax

Income tax payable (recoverable) is based on taxable profit (loss) for the year determined according to the applicable tax laws of each tax jurisdiction.

According to the Income Tax Act, an additional tax of inappropriate earnings is provided for as income tax in the year the shareholders approve to retain the earnings.

Adjustments of prior years’ tax liabilities are added to or deducted from the current year’s tax provision.

24 -

2) Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities and the corresponding tax bases used in the computation of taxable profit.

Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences and unused loss carryforwards to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized.

Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries and associates, and interests in joint ventures, except where the Company is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are only recognized to the extent that it is probable that there will be sufficient taxable profits against which to utilize the benefits of the temporary differences and they are expected to reverse in the foreseeable future.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. A previously unrecognized deferred tax asset is also reviewed at the end of each reporting period and recognized to the to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liabilities are settled or the assets are realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which The Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

3) Current and deferred taxes

Current and deferred tax are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognized in other comprehensive income or directly in equity respectively.

5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

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

When developing material accounting estimates, the Company considers the possible impact of government policies and regulations and inflation and interest rate fluctuations when making its critical accounting estimateson the cash flow projection, growth rates, discount rates, profitabilities and other relevant material estimates accounting. The estimates and underlying assumptions are reviewed on an ongoing basis.

25 -

Key Sources of Estimation Uncertainty

Estimated impairment of financial assets

The provision for impairment of trade receivables is based on assumptions about risk of default and expected loss rates. The Company uses judgment in making these assumptions and in selecting the inputs to the impairment calculation, based on the Company’s historical experience, existing market conditions as well as forward looking estimates as of the end of each reporting period. Where the actual future cash inflows are less than expected, a material impairment loss may arise.

6. CASH AND CASH EQUIVALENTS

Cash on hand Checking accounts and demand deposits Cash equivalents Time deposits in banks		December 31
		2023 2022 $ 4,352 $ 4,789 916,018 1,762,495 3,170,848 2,660,635 $ 4,091,218 $ 4,427,919

The market rate intervals of cash in bank and bank overdrafts at the end of the reporting period are as follows:

Bank balances	December 31
	2023 2022 0.001%-5.25% 0.001%-4.200%

7. FINANCIAL ASSETS AND LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS

Financial assets at FVTPL-current Financial assets classified as at FVTPL Non-derivative financial assets Domestic and foreign investments - Mutual funds - Listed shares - Unlisted shares Hybrid financial assets Domestic and foreign investments - Unlisted convertible bonds		December 31	December 31
		2023 $ 760,044 178,765 68,882 55,259 $ 1,062,950	2022 $ 503,173 58,795 116,049 - $ 678,017 (Continued)

26 -

Financial assets at FVTPL-non-current Financial assets classified as at FVTPL Non-derivative financial assets Domestic and foreign investments - Limited Partnership - Unlisted shares - Listed shares		December 31	December 31
		2023 $ 875,228 661,056 157,422 $ 1,693,706	2022 $ 773,718 717,861 33,390 $ 1,524,969 (Concluded)

8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

Non-current Domestic and foreign investments Unlisted shares Listed shares		December 31	December 31
		2023 $ 324,387 55,466 $ 379,853	2022 $ 262,258 33,297 $ 295,555

9. TRADE RECEIVABLE AND OTHER RECEIVABLE

Trade receivable At amortized cost Gross carrying amount Less: Allowance for impairment loss		December 31	December 31
		2023 $ 805,983 - $ 805,983	2022 $ 887,148 - $ 887,148

Trade receivable

The average credit period on sales of goods was 30 to 60 days without interest. The Company's exposure to credit risk and external credit ratings are continuously monitored. In order to minimize credit risk, the management of the Company has delegated a team responsible for determining credit limits, credit approvals and other monitoring procedures to ensure that follow-up action is taken to recover overdue debts. In addition, the Company reviews the recoverable amount of each individual trade debt at the end of the reporting period to ensure that adequate allowance is made for possible irrecoverable amounts. In this regard, the management believes the Company’s credit risk was significantly reduced.

27 -

The Company measures the loss allowance for trade receivables at an amount equal to lifetime ECLs. The expected credit losses on trade receivables are estimated using a provision matrix approach considering the past default experience of the customer, the customer’s current financial position, economic condition of the industry in which the customer operates, as well as the industry outlooks. As the Company’s historical credit loss experience does not show significantly different loss patterns for different customer segments, the provision for loss allowance based on past due status is not further distinguished according to the Company’s different customer base.

The Company writes off a trade receivable when there is evidence indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery. For trade receivables that have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivables due. Where recoveries are made, these are recognized in profit or loss.

The Company’s current credit risk grading framework is shown in the following table:

December 31, 2023

Not Overdue Expected credit loss rate - Gross carrying amount $ 805,983 Loss allowance (Lifetime ECLs) - Amortized cost $ 805,983	Overdue 1- 60 days - $ - - $ -	Overdue 61-90 days - $ - - $ -	Overdue 91-120 days Overdue 120 days or More - - $ - $ - - - $ - $ -	Total - $ 805,983 -
				$ 805,983

December 31, 2022

Not Overdue Expected credit loss rate - Gross carrying amount $ 887,148 Loss allowance (Lifetime ECLs) - Amortized cost $ 887,148	Overdue 1- 60 days - $ - - $ -	Overdue 61-90 days - $ - - $ -	Overdue 91-120 days Overdue 1201 days or More - - $ - $ - - - $ - $ -	Total - $ 887,148 -
				$ 887,148

The movements of the loss allowance of trade receivables were as follows:

Balance at January 1 and December 31 Other receivable Investment receivable Interest receivables Tax refund receivable Others	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2023 $ - December	2022 $ - 31
		2023 $ 48,379 13,025 7,900 1,668 $ 70,972	2022 $ 48,507 8,466 44,188 38,266 $ 139,427

28 -

10. INVENTORIES

Finished goods Work in progress Raw materials		December 31	December 31
		2023 $ 480,616 547,491 338,190 $ 1,366,297	2022 $ 573,810 887,525 785,321 $ 2,246,656

The costs of inventories recognized as cost of goods sold for the years ended December 31, 2023 and 2022 were $2,880,714 thousand and $3,308,444 thousand, respectively.

The costs of inventories recognized as costs of goods sold for the years ended December 31, 2023 and 2022 were as follows:

Inventory write - downs Loss of inventory scrapped Income from scrap sales	For the Year Ended	For the Year Ended	December 31
		2023 $ (189,601) (21) 236 $ (187,039)	2022 $ (249,122) - 172 $ (248,950)

11. SUBSIDIARIES

a. The subsidiaries included in the consolidated financial statements

The information of the subsidiaries at the end of reporting period was as follows:

Name of Investor
Name of Investee
Main Businesses and Products
Sunplus
Sunplus Management Consulting
Inc. (“Sunplus Management
Consulting”)
Management
Ventureplus Group Inc.
(“Ventureplus Group”)
Investment
Sunplus Technology (H.K.) Co.,
Ltd. (“Sunplus Technology
(H.K.)”)
International trade
Sunplus Venture Captial Co., Ltd.
(“Sunplus Venture”)
Investment
Lin Shin Investment Co., Ltd.
(“Lin Shin Investment”)
Investment
Sunplus mMobile Inc.
(“Sunplus mMobile”)
Design of ICs
Sunext Technology Co., Ltd.
(“Sunext Technology”)
Design of ICs
Sunplus Innovation Technology
Inc. (“Sunplus Innovation
Technology”)
Design of ICs
Generalplus Technology Inc.
(“Generalplus Technology”)
Design of ICs
Wei-Young Investment Inc.
(“Wei-Young Investment”)
Investment

Percentage of Ownership
December 31
2023
2022
Note
100.00
100.00
-
100.00
100.00
-
-
100.00
The liquidation of Sunplus
Technology (H.K.) was completed
on December 1, 2023.
100.00
100.00
-
100.00
100.00
-
-
100.00
The liquidation of Sunplus mMobile
was completed on June 15,
2023.Interest income of $22
thousand generated from the
closing of bank accounts was
reclassified to the gain on disposal
of the subsidiaries.
-
100.00
The base date of the simplified
merger of Sunext Technology and
Sunplus was October 15, 2023,
and Sunext Technology was
dissolved on October 20, 2023
50.08
50.49
-
34.30
34.30
Sunplus and its subsidiaries owned
47.99% of the equity in
Generalplus Technology and the
Company had controlling interest
over Generalplus Technology; the
investee is included in the
consolidated financial statements.
100.00
100.00
-

(Continued)

29 -

Name of Investor
Name of Investee
Main Businesses and Products
Sunplus
Russell Holdings Limited
(“Russell”)
Investment
Magic Sky Limited
(“Magic Sky”)
Investment
Sunplus mMedia Inc.
(“Sunplus mMedia”)
Design of ICs
Award Glory Ltd.
(“Award Glory”)
Investment
Jumplux Technology Co., Ltd.
(“Jumplux Technology”)
Design of ICs
Ventureplus Group
Ventureplus Mauritius Inc.
(“Ventureplus Mauritius”)
Investment
Ventureplus Mauritius
Ventureplus Cayman Inc.
(“Ventureplus Cayman”)
Investment
Ventureplus Cayman
Sunplus App Technology Co.,
Ltd. (“Sunplus App”)
Sale of electronic components
and information management
and education
Sunplus Prof-tek Technology
(Shenzhen) Co., Ltd.
(“Sunplus Prof-tek
(Shenzhen)”)
Software development, customer
technical services, leasing
business, property management
and corporate management
Sunplus Technology (Shanghai)
Co., Ltd. (“Sunplus Shanghai”)
Software development, customer
technical services, leasing
business and property
management
SunMedia Technology Co., Ltd.
(“SunMedia”)
Development of computer
software, system integration
services and building rental
Beijing Sunplus-EHue Tech Co.,
Ltd. (“Beijing Sunplus-EHue”)
Development of computer
software, system integration
services and building rental
Sunplus Shanghai
Jsilicon Technology Co., Ltd.
(“Jsilicon Technology”)
Software Development and IC
Design
Chongqing CQPlus1 Technology
Co., Ltd. (“Chongqing
CQPlus1”)
Software Development and IC
Design
Sunplus Prof-tek (Shenzhen)
Chongqing CQPlus1
Software Development and IC
Design
Sunplus Venture Capital
Jumplux Technology
Design of ICs
Sunplus mMedia
Design of ICs
Sunplus Innovation Technology
Design of ICs
GenkiTek Technology Co., Ltd.
(“GenkiTek Technology”)
Software development
Lin Shin Investment
Generalplus Technology
Design of ICs
Sunplus mMedia
Design of ICs
Sunplus Innovation Technology
Design of ICs
Generalplus Technology
Generalplus International
(Samoa) Inc.
(“Generalplus Samoa”)
Investment
Generalplus Samoa
Generalplus (Mauritius) Inc.
(“Generalplus Mauritius”)
Investment
Generalplus Mauritius
Generalplus Technology
(Shenzhen) Co.
(“Generalplus Shenzhen”)
Design of ICs, after sales service
and marketing research
Generalplus HK Co., Ltd.
(“Generalplus H.K.”)
Marketing
Award Glory
Sunny Fancy Ltd.
(“Sunny Fancy”)
Investment
Sunny Fancy
Giant Kingdom Ltd.
(“Giant Kingdom”)
Investment
Giant Rock Inc. (“Giant Rock”)
Investment
Worldplus Holdings L.L.C.
(“Worldplus”)
Investment
Giant Best Ltd. (“Giant Best”)
Investment

Percentage of Ownership
December 31
2023
2022
Note
-
100.00
The liquidation of Russell was
completed on July 24, 2023, and
was cancelled on October 31,
2023. the related cumulative
translation adjustments of $19,358
thousand was reclassified to the
gain on disposal of the
subsidiaries.
-
-
The disposed of Magic Sky was
completed on June 22, 2022.
89.76
89.76
-
100.00
100.00
-
55.00
55.00
-
100.00
100.00
-
100.00
100.00
-
35.90
35.90
Sunplus’ subsidiaries held 100% of
the equity in Sunplus App.
100.00
100.00
-
100.00
100.00
The Investment Commission, MOEA
approved the splitting of Sunplus
Shanghai into two new companies
on November 14, 2023, which
both are 100%-owned subsidiaries
of Ventureplus Cayman, a
company in which Sunplus has
reinvested.
100.00
100.00
-
100.00
100.00
-
-
-
The liquidation of Jsilicon
Technology was completed on
August 30, 2022.
-
67.50
Sunplus Shanghai transferred its
holding of Chongqing CQPlus1 to
Sunplus Prof-tek (Shenzhen) on
November 10, 2023.
100.00
32.50
Sunplus’ subsidiaries held 100% of
the equity in Chongqing CQPlus1.
42.08
42.08
Sunplus and its subsidiaries held
97.08% of the equity in Jumplux
Technology.
7.64
7.64
Sunplus and its subsidiaries held
100% of the equity in Sunplus
mMedia.
5.00
5.04
Sunplus and its subsidiaries held
56.92% of the equity in Sunplus
Innovation Technology.
-
-
The disposed of GenkiTek
Technology was completed on
June 20, 2022.
13.69
13.69
Sunplus and its subsidiaries held
47.99% stake in Generalplus
Technology and the Company had
controlling interest over
Generalplus Technology; the
investee is included in the
consolidated financial statements.
2.60
2.60
Sunplus and its subsidiaries held
100% of the equity in Sunplus
mMedia.
1.84
1.84
Sunplus and its subsidiaries held
56.92% of the equity in Sunplus
Innovation Technology.
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
-
-
The cancellation of Giant Kingdom
was completed on September 5,
2022.
100.00
100.00
-
100.00
100.00
-
-
-
The cancellation of Giant Best was
completed on September 5, 2022.

(Continued)

30 -

Name of Investor Name of Investee Main Businesses and Products Giank Rock Sunplus App Sale of electronic components and information management and education Worldplus Worldplus Technology (Shenzhen)Co., Ltd. (“Worldplus (Shenzhen)”) Software development, rental business and property management	Percentage of Ownership December 31 2023 2022 Note 64.10 61.54 Sunplus’ subsidiaries held 100% of stake in Sunplus App. 100.00 100.00 - (Concluded)

The financial statements as of and for the years ended December 31, 2023 and 2022 of the above subsidiaries except Sunplus Management Consulting, was audited by the auditors. The management of the Company believes that the financial statements of Sunplus Management Consulting. will not be subject to major adjustments if it is audited.

b. Subsidiary excluded from the consolidated financial statements

Company name Generalplus Technology Sunplus Innovation Technology	The Voting Ratio of Non-controlling Equity
	December 31
	2023 2022 52.01% 52.01% 43.08% 42.62%

Refer to attachment 5 for registered countries and company information:

Company Name Generalplus Technology Sunplus Innovation Technology	Profits Attributed to Non-controlling Interests For the Year Ended December 31 2023 2022 $ 87,376 $ 301,357 183,014 156,181	Non-controlling Interests
		December 31
		2023 2022 $ 1,125,557 $ 1,326,318 1,193,093 1,152,553

The summarized financial information below represents amounts before intragroup eliminations.

Current assets Non-current assets Current liabilities Non-current liabilities Equity Equity attributable to: Owners of the Company Non-controlling interests		December 31	December 31
		2023 $ 4,829,471 912,702 912,222 190,676 $ 4,639,275 $ 2,320,625 2,318,650 $ 4,639,275	2022 $ 5,296,688 931,054 1,050,883 198,565 $ 4,978,294 $ 2,499,423 2,478,871 $ 4,978,294

31 -

Operating revenue Net income Other comprehensive (loss) income Total other comprehensive income Equity attributable to: Owners of the Company Non-controlling interests Total other comprehensive income attributable to: Owners of the Company Non-controlling interests Cash flows Operating activities Investing activities Financing activities Effect of exchange rate changes on the balance of cash held in foreign currencies Net cash outflow Dividend paid to non-controlling interests	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2023 $ 3,817,081 $ 595,774 (536) $ 595,238 $ 325,384 270,390 $ 595,774 $ 325,962 269,276 $ 595,238 $ 1,037,832 (202,667) (947,065) (1,049) $ (112,949) $ (459,643)	2022 $ 4,711,094 $ 952,695 7,278 $ 959,973 $ 495,157 457,538 $ 952,695 $ 498,668 461,305 $ 959,973 $ 535,759 469,164 (1,281,879) 16,526 $ (260,430) $ (557,998)

12. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

Investments in associates a. Investments in associates Listed companies iCatch Technology Inc. Global View Co., Ltd. AkiraNET Co., Ltd. AutoSys Co., Ltd. eNeural Technologies, Inc.		December 31
		2023 2022 $ 898,833 $ 932,789 December 31
		2023 2022 $ 378,086 $ 386,385 324,338 318,969 84,102 156,053 64,783 70,200 35,103 - (Continued)

32 -

DeepLux Technology, Inc. WiSilicon Innovation Co., Ltd. GlintMed Innovation Co., Ltd. Name of Associate iCatch Technology Global View AkiraNET AutoSys Co., Ltd. eNeural Technologies, Inc. DeepLux Technology, Inc. WiSilicon Innovation GlintMed Innovation		December 31
		2023 2022 $ 3,217 $ - 8,440 - 764 1,182 $ 898,833 $ 932,789 (Concluded) December 31
		2023 2022 18% 18% 13% 13% 17% 26% 16% 16% 35% - 25% - 38% - 25% 25%

Refer to Table 5 following these Notes to Consolidated Financial Statements for information on the associates’ business types, main operating locations and registered countries.

Fair values (Level 1) of investments in associates with available published price quotations are summarized as follows:

Name of Associate iCatch Technology Global View		December 31	December 31
		2023 $ 1,238,147 $ 246,884	2022 $ 681,236 $ 241,535

Investments in the above jointly controlled entities are accounted for using the equity method.

The summarized financial information of the Company’s associates is set out below:

Total assets Total liabilities Revenue Loss for the year Other comprehensive (loss) income for the year Share of (loss) profits of associates accounted for using the equity		December 31	December 31
	2023 2022 $ 4,355,866 $ 4,469,929 $ 387,651 $ 434,939 For the Year Ended December 31
		2023 $ 1,301,612 $ (226,209) $ (392,806) $ (109,245)	2022 $ 1,249,539 $ (76,486) $ (149,442) $ (15,299)

33 -

The financial statements as of and for the years ended December 31, 2023 and 2022 of the above associates expect GlintMed Innovation were audited by the auditors. The management of the Company believes that the financial statements of GlintMed Innovation will not be subject to major adjustments if it is audited.

13. PROPERTY, PLANT AND EQUIPMENT

a. Assets used by the Company

Cost Balance at January 1, 2023 Additions Reductions Reclassified Effect of exchange rate changes Balance at December 31, 2023 Accumulated depreciation Balance at January 1, 2023 Depreciation expense Reductions Effect of exchange rate changes Balance at December 31, 2023 Carrying amount at December 31, 2023 Cost Balance at January 1, 2022 Additions Reductions Reclassified Consolidated changes Effect of exchange rate changes Balance at December 31, 2022 Accumulated depreciation Balance at January 1, 2022 Depreciation expense Reductions Consolidated changes Effect of exchange rate changes Balance at December 31, 2022 Carrying amount at December 31, 2022	Buildings $ 2,332,524 - - - (20,359) $ 2,312,165 $ 693,541 51,192 - (4,157) $ 740,576 $ 1,571,589 $ 2,316,438 - - - - 16,086 $ 2,332,524 $ 639,674 51,345 - - 2,522 $ 693,541 $ 1,638,983	Auxiliary Equipment $ 192,905 12,502 (1,757 ) 1,552 (1,667) $ 203,535 $ 170,875 8,808 (1,757 ) (1,394) $ 176,532 $ 27,003 $ 189,846 5,873 (7,692 ) - - 4,878 $ 192,905 $ 166,576 9,257 (7,692 ) - 2,734 $ 170,875 $ 22,030	Machinery and Equipment $ 35,676 - (4,194 ) - 8,670 $ 40,152 $ 17,715 5,114 (4,194 ) 1,789 $ 20,424 $ 19,728 $ 26,865 2,395 - 5,845 - 571 $ 35,676 $ 11,899 6,071 - - (255) $ 17,715 $ 17,961	Testing Equipment $ 779,167 137,472 (37,095 ) 4,379 (10,609) $ 873,314 $ 640,737 183,970 (37,081 ) (3,702) $ 783,924 $ 89,390 $ 626,345 169,552 (48,094 ) 31,547 (614 ) 431 $ 779,167 $ 535,876 151,018 (47,935 ) (171 ) 1,949 $ 640,737 $ 138,430	Transportation Equipment $ 4,635 - (851 ) - (57) $ 3,727 $ 4,030 217 (851 ) (53) $ 3,343 $ 384 $ 4,578 - - - - 57 $ 4,635 $ 3,762 217 - - 51 $ 4,030 $ 605	Furniture and Fixtures $ 339,027 30,935 (26,998 ) 12,055 (2,363) $ 352,656 $ 252,977 44,302 (26,837 ) (2,554) $ 267,888 $ 84,768 $ 308,499 36,316 (13,062 ) 5,130 (55 ) 2,199 $ 339,027 $ 225,712 38,381 (12,885 ) (28 ) 1,797 $ 252,977 $ 86,050	Leasehold Improvements $ 1,042 - - - - $ 1,042 $ 965 376 - (349) $ 992 $ 50 $ 1,208 - (170 ) - - 4 $ 1,042 $ 1,081 401 (170 ) - (347) $ 965 $ 77	Other Equipment $ 25,553 991 (565 ) - (776) $ 25,203 $ 23,742 642 (557 ) (6) $ 23,821 $ 1,382 $ 29,029 37 (238 ) - - (3,275) $ 25,553 $ 25,105 660 (238 ) - (1,785) $ 23,742 $ 1,811	Construction in Progress $ 24,322 11,052 - (17,986 ) (42) $ 17,346 $ - - - - $ - $ 17,346 $ 43,517 24,090 - (42,522 ) - (763) $ 24,322 $ - - - - - $ - $ 24,322	Total $ 3,734,851 192,952 (71,460 ) - (27,203) $ 3,829,140 $ 1,804,582 294,621 (71,277 ) (10,426) $ 2,017,500 $ 1,811,640 $ 3,546,325 238,263 (69,256 ) - (669 ) 20,188 $ 3,734,851 $ 1,609,685 257,350 (68,920 ) (199 ) 6,666 $ 1,804,582 $ 1,930,269

The above items of property, plant and equipment are depreciated on a straight-line basis over the following estimated useful lives as follows:

Buildings	10-56 years
Auxiliary equipment	3-11 years
Machinery and equipment	3-10 years
Testing equipment	1-6 years
Transportation equipment	4 years
Furniture and fixtures	1-5 years
Leasehold improvements	4-5 years
Other equipment	3-10 years

Refer to Note 34 for the carrying amounts of property, plant and equipment that have been pledged by the Company to secure borrowings.

34 -

14. LEASE ARRANGEMENTS

a. Right-of-use assets

Carrying amount Land Buildings Transportation equipment Additions to right-of-use assets Depreciation charge for right-of-use assets Land Buildings Transportation equipment		December 31	December 31
	2023 $ 185,378 2,451 1,861 $ 189,690 For the Year Ended		2022 $ 192,049 6,762 3,300 $ 202,111 December 31
		2023 $ 1,598 $ 6,670 7,425 1,440 $ 15,535	2022 $ 3,926 $ 6,671 7,666 767 $ 15,104

Except for the aforementioned addition and recognized depreciation, the Company did not have significant sublease or impairment of right-of-use assets during the years ended December 31, 2023 and 2022.

The other part of right-of-use assets-land in China is subleased by operating leases, and the relevant right-of-use assets are classified as investment properties. Please refer to Note 15.

b. Lease liabilities

Carrying amount Current Non-current Range of discount rates for lease liabilities was as follows: Land Buildings Transportation equipment		December 31
		2023 2022 $ 7,425 $ 13,071 $ 192,545 $ 197,690 December 31
	2023 2022 2.390% 2.390% 1.575%-7.060% 1.575%-7.060% 1.175%-1.625% 1.175%-1.625%

35 -

c. Material lease-in activities and terms

The Company leases land and buildings for the use of plants, offices and dormitory, also leases transportation equipment for the use of business travel with lease terms of 2 to 20 years. Lease terms of land in the ROC is 20 years, the lease contract for land located in the ROC specifies that lease payments will be adjusted on the basis of changes in announced land value prices. Lease terms of land in China is 50 years. The Company does not have bargain purchase options to acquire the leasehold land and buildings at the end of the lease terms.

The Company did not enter into significant lease contracts in the year ended December 31, 2023 and 2022.

d. Other lease information

Expenses relating to short-term leases Expenses relating to low-value asset leases Total cash outflow for leases	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2023 $ 7,940 $ 394 $ 25,719	2022 $ 6,704 $ 425 $ 22,387

The Company leases certain transportation equipment and other leases which qualify as short-term leases. The Company has elected to apply the recognition exemption and, therefore not recognize right-of-use assets and lease liabilities for these leases.

15. INVESTMENT PROPERTIES

Cost Balance at January 1, 2023 Effect of exchange rate differences Balance at December 31, 2023 Accumulated depreciation Balance at January 1, 2023 Depreciation expense Effect of exchange rate differences Balance at December 31, 2023 Carrying amount at December 31, 2023	Completed Investment Properties $ 1,446,953 (25,954) $ 1,420,999 $ 650,090 67,707 (12,898) $ 704,899 $ 716,100	Right-of-use Assets $ 103,262 (1,897) $ 101,365 $ 9,969 2,507 (224) $ 12,252 $ 89,113	Total $ 1,550,215 (27,851) $ 1,522,364 $ 660,059 70,214 (13,122) $ 717,151 $ 805,213 (Continued)

36 -

Cost Balance at January 1, 2022 Effect of exchange rate differences Balance at December 31, 2022 Accumulated depreciation Balance at January 1, 2022 Depreciation expense Effect of exchange rate differences Balance at December 31, 2022 Carrying amount at December 31, 2022	Completed Investment Properties $ 1,426,446 20,507 $ 1,446,953 $ 572,824 69,082 8,184 $ 650,090 $ 796,863	Right-of-use Assets $ 101,764 1,498 $ 103,262 $ 7,348 2,521 100 $ 9,969 $ 93,293	Total $ 1,528,210 22,005 $ 1,550,215 $ 580,172 71,603 8,284 $ 660,059 $ 890,156 (Concluded)

The right-of-use assets in the investment properties are the use right of land signed by the Company and is subleased under operating lease. The lease terms of the investment properties are from 1 to 15 years, with extension option according to the original contract when exercising the renewal right. The lessee do not have bargain purchase options to acquire the investment properties at the expiry of the lease periods.

The maturity analysis of lease payments receivable under operating leases of investment properties is as follows:

Year 1 Year 2 Year 3		December 31	December 31
		2023 $ 223,558 174,553 99,912 $ 498,023	2022 $ 171,189 126,401 105,935 $ 403,525

The above items of investment properties are depreciated on a straight-line basis over their estimated useful lives as follows:

Completed investment properties	5-26 years
Right-of-use assets	35-39 years

The fair value of the investment properties of Worldplus (Shenzhen) assessed in 2023 and 2022 had been determined on the basis of valuations carried out on December 31, 2023 and 2022 by Suzhou Fengzheng Renhe Estate Land Assets Appraisal Co., Ltd. The valuation was arrived at by reference to the income approach. The significant unobservable inputs used include discount rates; the fair value as appraised is as follows:

Fair value	December 31
	2023 2022 $ 42,839 $ 43,674

37 -

The fair value of the investment properties of SunMedia assessed in 2023 and 2022 had been determined on the basis of valuations carried out on December 31, 2023 and 2022 by Sichuan Jinshuo Ruilin Assets Appraisal Office Co., Ltd. The valuation was arrived at by reference to the income approach. The significant unobservable inputs used include discount rates; the fair value as appraised is as follows:

Fair value	December 31
	2023 2022 $ 1,164,484 $ 1,208,169

The fair value of the investment properties of Sunplus Shanghai assessed in 2023 and 2022 had been determined on the basis of valuations carried out on December 31, 2023 and 2022 by Suzhou Feng-Zheng Renhe Real Estate Valuation Firm. The valuation was arrived at by reference to the income approach. The significant unobservable inputs used include discount rates; the fair value as appraised is as follows:

16.	Fair value INTANGIBLE ASSETS Technology License Fees Cost Balance at January 1, 2023 $ 1,070,048 Additions 36,850 Reductions (81,780) Effect of exchange rate differences (561) Balance at December 31, 2023 $ 1,024,557 Accumulated amortization Balance at January 1, 2023 $ 768,246 Amortization expense 87,076 Reductions (81,780) Effect of exchange rate differences (549) Balance at December 31, 2023 $ 772,993 Accumulated impairment Balance at January 1, 2023 $ 111,593 Impairment loss - Balance at December 31, 2023 $ 111,593 Carrying amounts at December 31, 2023 $ 139,971	Software $ 374,003 33,179 (2,500) (569) $ 404,113 $ 350,830 30,881 (1,811) (483) $ 379,417 $ - - $ - $ 24,696	December 31 2023 2022 $ 2,137,152 $ 2,240,661 Patents Goodwill Total $ 114,500 $ 30,596 $ 1,589,147 - - 70,029 - - (84,280) (5) - (1,135) $ 114,495 $ 30,596 $ 1,573,761 $ 88,316 $ - $ 1,207,392 864 - 118,821 - - (83,591) (5) - (1,037) $ 89,175 $ - $ 1,241,585 $ 21,577 $ - $ 133,170 - - - $ 21,577 $ - $ 133,170 $ 3,743 $ 30,596 $ 199,006 (Continued)	December 31

38 -

Technology License Fees Cost Balance at January 1, 2022 $ 1,074,594 Additions 42,429 Reductions (43,238) Consolidated changes (4,000) Effect of exchange rate differences 443 Balance at December 31, 2022 $ 1,070,048 Accumulated amortization Balance at January 1, 2022 $ 698,474 Amortization expense 110,465 Reductions (39,015) Consolidated changes (2,033) Effect of exchange rate differences 355 Balance at December 31, 2022 $ 768,246 Accumulated impairment Balance at January 1, 2022 $ 111,136 Impairment loss 460 Effect of exchange rate differences (3) Balance at December 31, 2022 $ 111,593 Carrying amounts at December 31, 2022 $ 190,209	Software $ 348,196 26,424 (1,049) (16) 448 $ 374,003 $ 323,912 27,655 (1,049) (14) 326 $ 350,830 $ - - - $ - $ 23,173	Patents $ 116,496 - - (2,000) 4 $ 114,500 $ 87,864 1,163 - (712) 1 $ 88,316 $ 21,577 - - $ 21,577 $ 4,607	Goodwill Total $ 30,596 $ 1,569,882 - 68,673 - (44,287) - (6,016) - 895 $ 30,596 $ 1,589,147 $ - $ 1,110,250 - 139,283 - (40,064) - (2,759) - 682 $ - $ 1,207,392 $ - $ 132,713 - 460 - (3) $ - $ 133,170 $ 30,596 $ 248,585 (Concluded)

Other intangible assets are amortized on a straight-line basis over their estimated useful lives as follows:

Technology license fees 1-10 years Software 1-10 years Patents 8-18 years

An analysis of depreciation by function

Operating costs Selling and marketing expenses General and administrative expenses Research and development expenses	For the Year Ended	For the Year Ended	December 31
		2023 $ 237 217 4,265 114,102 $ 118,821	2022 $ 165 32 3,961 135,125 $ 139,283

39 -

17. OTHER ASSETS

Current Other financial assets Restricted assets (a) Time deposits (b) Other assets Prepayments for EDA tools Prepaid technical licensing fee Others Non-current Other financial assets Time deposits (c) Pledged time deposits (d) Other assets Refundable deposits(e) Prepayments for purchases(f) Others		December 31	December 31
		2023 $ - 29,077 $ 29,077 $ 23,572 10,942 34,703 $ 69,217 $ 229,331 13,500 $ 242,831 $ 111,810 21,524 7,801 $ 141,135	2022 $ 43,610 4,408 $ 48,018 $ 22,856 13,168 67,045 $ 103,069 $ 214,757 15,343 $ 230,100 $ 111,975 25,182 7,801 $ 144,958

a. Refer to Note 28 for information on restricted assets.
b. Sunplus Shanghai and Beijing Sunplus-EHue made time deposit of RMB$6,720 thousand at banks on December 31, 2023; Worldplus (Shenzhen) made time deposit of RMB$1,000 thousand at banks on December 31, 2022. The period of time deposit is 6 months to 1 year, and interest can be charged at a certain interest rate during the deposit period.
c. Worldplus (Shenzhen) and Generalplus Shenzhen made time deposit of RMB$53,000 thousand at banks on December 31, 2023; Sunplus Shanghai, Worldplus (Shenzhen) and Generalplus Shenzhen made certificates of deposit of RMB$48,720 thousand at the bank on December 31, 2022. The deposit period of the certificates of deposit is 2 to 3 years, and interest can be charged at a certain interest rate during the deposit period.
d. Refer to Note 34 for information on pledged time deposits.
e. Refer to Note 35 for information on refundable deposits.
f. The amount of prepayments is Generalplus Technology signed a production capacity cooperation agreement with the supplier, and the prepayment paid in accordance with the contract will be offset in 5 years when the production capacity conditions in the contract are met.
40 -

18. BORROWINGS

a. Short-term borrowings

Unsecured borrowings Bank loans		December	31
		2023 $ 27,635	2022 $ 42,000

The effective interest rate intervals for bank loans as of December 31, 2023 and 2022 were 6.2% and 2.4% per annum, respectively.

b. Long-term borrowings

The borrowings of the Company were as follows:

Maturity Date Significant Covenant Floating rate borrowings Unsecured bank borrowings 2027.11.18 Repayable quarterly from grace period expiration date, in 16 installments Unsecured bank borrowings 2025.09.02 Repayable semiannually from grace period expiration date, in 3 installments, 1&2 installment repay 20% respectively, and the balance will be paid on final installment Unsecured bank borrowings 2028.01.10 Repayable quarterly from grace period expiration date, in 17 installments, interest is paid on a monthly basis Secured borrowings (Note 34) 2026.06.30 Repayable quarterly from grace period expiration date, per installment repay 5% respectively, and the balance will be paid on maturity Less: Current portion Long-term borrowings		December 31	December 31
		2023 $ 500,000 500,000 150,000 50,000 (270,295) $ 929,705	2022 $ 500,000 500,000 - - - $ 1,000,000

The interval of effective borrowing rates as of December 31, 2023 and 2022 were 1.920%-2.266% and 1.875%, respectively.

According to the loan contract, the consolidated financial statements of the company for semiannual are limited by current ratio, net tangible assets, debt ratio, interest guarantee multiple. However, the Company’s inability to meet the ratio requirements would not be deemed as a violation of the contracts. As of June 30, 2023 and December 31, 2023, the Company was in compliance with these financial ratio requirements.

19. ACCOUNTS PAYABLE

ACCOUNTS PAYABLE
Accounts payable Payable - operating		December 31
		2023 $ 331,737	2022 $ 420,335

41 -

The average credit period on purchases of certain goods was 15-60 days. The Company has financial risk management policies in place to ensure that all payables are paid within the pre-agreed credit terms.

20. OTHER LIABILITIES

Current Other payables Payables for salaries or bonuses Refund liabilities (Note 23) Payables for employees’ compensation and remuneration of directors Others Deferred revenue Government grants (Note 28) Non-current Other payables Decommissioning liabilities Payables for purchases of intangible assets Payables for purchases of equipment Deferred revenue Government grants (Note 28)		December 31	December 31
		2023 $ 477,929 84,825 45,062 283,603 $ 891,419 $ 1,885 $ 888 - - $ 888 $ 52,012	2022 $ 566,825 143,040 138,211 215,625 $ 1,063,701 $ 1,921 $ 889 3,838 1,870 $ 6,597 $ 54,905

21. RETIREMENT BENEFIT PLANS

a. Defined contribution plans

Sunplus, Generalplus Technology and Sunplus Innovation Technology of the Company adopted a pension plan under the Labor Pension Act (LPA), which is a state-managed defined contribution plan. Under the LPA, the Company makes monthly contributions to employees’ individual pension accounts at 6% of monthly salaries and wages.

b. Defined benefit plans

The defined benefit plans adopted by Sunplus, Generalplus Technology and Sunplus Innovation Technology in accordance with the Labor Standards Act is operated by the government of the ROC. Under this plan, employees should receive either a series of pension payments with a defined annuity or a lump sum that is payable immediately on retirement and is equivalent to 2 base units for each of the first 15 years of service and 1 base unit for each year of service thereafter. The total retirement benefit is subject to a maximum of 45 units. The pension benefits are calculated on the basis of the length of service and average monthly salaries of the six month before retirement. In addition, the Company makes monthly contributions, equal to 2% of salaries, to a pension fund, which is administered by a

42 -

fund monitoring committee. Pension contributions are deposited in the Bank of Taiwan in the committee’s name and are managed by the Bureau of Labor Funds, Ministry of Labor (the “Bureau”); the company has no right to influence the investment policy and strategy.

The amounts included in the consolidated balance sheets in respect of the Company’s defined benefit plans are as follows:

December 31 2023 2022 Present value of funded defined benefit obligation $ 148,670 $ 166,753 Fair value of plan assets (170,769) (180,469) Net assets arising from defined benefit obligation $ (22,099) $ (13,716) Movements in net defined benefit (assets) liabilities were as follows: Present Value of Funded Defined Benefit Obligation Fair Value of Plan Assets Net Defined Benefit Liabilities (Assets) Balance at January 1, 2022 $ 199,537 $ 184,378 $ 15,159 Service cost Current service cost 478 - 478 Net interest expense (income) 1,018 917 101 Recognized gain and loss 1,496 917 579 Remeasurement Return on plan assets - 14,366 (14,366) Actuarial (gain) loss-experience adjustment (784) - (784) Actuarial loss-changes in financial assumptions (11,224) - (11,224) Recognized in other comprehensive income (12,008) 14,366 (26,374) Contributions from the employer - 227 (227) Benefit paid (19,169) (19,169) - Settlements (3,103) (250) (2,853) Balance at December 31, 2022 $ 166,753 $ 180,469 $ (13,716) Balance at January 1, 2023 $ 166,753 $ 180,469 $ (13,716) Service cost Current service cost 227 - 227 Net interest expense (income) 2,129 2,276 (147) Recognized gain and loss 2,356 2,276 80 Remeasurement Return on plan assets - (373) 373 Actuarial (gain) loss-experience adjustment (4,802) - (4,802) Actuarial loss-changes in financial assumptions 214 - 214 Recognized in other comprehensive income (4,588) (373) (4,215) Contributions from the employer - 225 (225) Benefit paid (15,851) (11,828) (4,023) Balance at December 31, 2023 $ 148,670 $ 170,769 $ (22,099)		December 31

43 -

An analysis by function of the amounts recognized in loss (profit) in respect of the benefit plans is as follows:

Operating costs Selling and marketing expenses General and administrative expenses Research and development expenses Net liability arising from defined benefit obligation	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2023 $ (53) (7) (84) 224 $ (80)	2022 $ 53 9 99 (3,195) $ (3,034)

Through the defined benefit plans under the Labor Standards Law, the Company is exposed to the following risks:

1) Investment risk: The plan assets are invested in domestic and foreign equity and debt securities, bank deposits, etc. The investment is conducted at the discretion of the Bureau or under the mandated management. However, in accordance with relevant regulations, the return generated by plan assets should not be below the interest rate for a 2-year time deposit with local banks.
2) Interest risk: A decrease in the government bond interest rate will increase the present value of the defined benefit obligation; however, this will be partially offset by an increase in the return on the plan’s debt investments.
3) Salary risk: The present value of the defined benefit obligation is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the present value of the defined benefit obligation.

The actuarial valuations of the present value of the defined benefit obligation were carried out by qualified actuaries. The significant assumptions used for the purposes of the actuarial valuations were as follows:

Discount rate (s) Expected rate (s) of salary increase Resignation rate	December 31
	2023 2022 1.25%-1.30% 1.25%-1.40% 3.625%-4.250% 3.625%-4.250% 0%-28% 0%-28%

If possible reasonable change in each of the significant actuarial assumptions occur and all other assumptions remain constant, the present value of the defined benefit obligation will increase (decrease) as follows:

Discount rate (s) 0.25% increase 0.25% decrease Expected rate (s) of salary increase 1% increase 1% decrease		December 31	December 31
		2023 $ (3,114) $ 3,216 $ 12,852 $ (11,607)	2022 $ (3,720) $ 3,850 $ 15,844 $ (14,124)

44 -

The above sensitivity analysis may not be representative of the actual change in the present value of the defined benefit obligation as it is unlikely that the change in assumptions will occur in isolation of one another as some of the assumptions may be correlated.

Expected contributions to the plan for the next year Average duration of the defined benefit obligation		December	31
	2023 2022 $ 225 $ 223 8-29.4 years 9-29.4 years

22. EQUITY

a. Share capital
1) Ordinary shares:

Ordinary shares:
Shares authorized (in thousands of shares) Value of authorized shares Shares issued and fully paid (in thousands) Shares issued and fully paid		December 31
		2023 1,200,000 $ 12,000,000 591,995 $ 5,919,949	2022 1,200,000 $ 12,000,000 591,995 $ 5,919,949

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

Of Sunplus’ authorized shares, 80,000 thousand shares had been reserved for the issuance of subscription warrants, preferred shares with warrants or corporate bonds with warrants.

2) Global depositary receipts

In March 2001, Sunplus issued 20,000 thousand units of global depositary receipts (GDRs), representing 20,000 thousand ordinary shares that consisted of newly issued and originally outstanding shares. The GDRs are listed on the London Stock Exchange (ticker: SUPD) with an issuance price of US$9.57 per unit.

On August 12, 2022, the board of directors proposed to cease the trading of Sunplus’s issued ordinary shares on the London Stock Exchange in the form of GDRs. The termination agreement was completed on November 10, 2022, and the GDRs termination listing procedure was completed on the London Stock Exchange.

b. Capital surplus

May be used to offset a deficit, distributed as cash dividends, or transferred to share capital (1) From business combinations The difference between consideration received or paid and the carrying amount of the subsidiaries’ net assets during actual disposal or acquisition	December 31
	2023 2022 $ 92,448 $ 138,032 297,845 297,845 (Continued)

45 -

May on be used to offset a deficit From treasury share transactions Changes in percentage of ownership interests in subsidiaries (2) Changes in net equity of associates accounted for using the equity method		December 31	December 31
		2023 $ 57,435 461,302 251,901 $ 1,160,931	2022 $ 55,298 475,546 230,652 $ 1,197,373 (Concluded)

1) When Sunplus has no deficit, such capital surplus may be distributed as cash dividends, or may be transferred to share capital once a year and within a certain percentage of Sunplus’ capital surplus.
2) Such capital surplus arises from the effects of changes in ownership interests in subsidiaries resulting from equity transactions other than actual disposals or acquisitions or from chants in capital surplus of subsidiaries accounted for using the equity method.
c. Retained earnings and dividends policy

The shareholders’ meeting resolved the Sunplus’ Articles of Association on June 8, 2022. Under the dividends policy as set forth in the amended Articles, when the Sunplus makes a 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, though this limitation is not applicable when the legal reserve has reached the total capital, setting aside or reversing a special reserve in accordance with the laws and regulations, and then any remaining profit together with any undistributed retained earnings shall be used by the Sunplus’ board of directors as the basis for proposing a distribution plan, which should be resolved in the shareholders’ meeting for the distribution of dividends and bonuses to shareholders. However, the ratio of earnings for distribution and the ratio of the shareholders’ cash dividends may depend on the current year. The actual profit and capital status shall be adjusted by the resolution of the shareholders in their meeting. The total number of shareholders’ dividends based on the annual surplus shall be distributed at the rate of not less than 10% of the newly added distributable surplus for the year but shall not be distributed when the annual surplus is less than 1% of the paid-in capital. The aforementioned cash dividends shall not be less than 10% of the total dividends to be distributed to shareholders.

For the policies on the distribution of employees’ compensation and remuneration to directors and supervisors before and after the amendment, refer to Note 24-h.

Appropriation of earnings to the legal reserve shall be made until the legal reserve equals the Sunplus’ paid-in capital. Legal reserve may be used to offset deficit. If the Sunplus has no deficit and the legal reserve has exceeded 25% of the Sunplus’ paid-in capital, the excess may be transferred to capital or distributed in cash.

The appropriations of earnings for 2022 and 2021 were approved by the shareholder in the shareholders’ meeting on June 13, 2023 and June 8, 2022, as follows:

	For	Year 2022	For	Year 2021
Legal reserve	$	27,902	$	124,955
Special reserve reversed	$	58,521	$	21,875
Cash dividend	$	309,613	$	1,146,102
Cash dividend per share (NT$)	$	0.523	$	1.9360

46 -

The Sunplus’ shareholders resolved in the shareholders’ meetings on June 13, 2023 and June 8, 2022 to issue cash dividends of $45,584 thousand and $37,888 thousand from the capital surplus.

The deficit compensation proposal for 2023 in the board of directors meeting proposed on March 13, 2024 as follows:

2024 as follows:
	For	the Year
		2023
Special reserve reversed	$	56,523

The proposal for 2023 deficit compensation is subject to resolution in the shareholders’ meeting to be held on June 12, 2024.

d. Special reserve

Beginning at January 1 Special reserve reversed Balance at December 31	For the Year Ended	For the Year Ended	December 31
		2023 $ 239,203 (58,521) $ 180,682	2022 $ 261,078 (21,875) $ 239,203

e. Other equity items
1) Exchange differences on translating the financial statements of foreign operations:

Balance at January 1 Recognized for the year Exchange differences on translating foreign operations Share of exchange differences of associates accounted for using equity method Reclassification adjustments Disposal of foreign operations Balance at December 31	For the Year Ended	For the Year Ended	December 31
		2023 $ (136,477) (24,896) (2,420) (26,377) $ (190,170)	2022 $ (259,512) 110,250 768 12,017 $ (136,477)

2) Unrealized valuation gain (loss) on financial assets at FVTOCI:

Balance at January 1 Recognized for the year Unrealized (losses) gains Share from associates accounted for using equity method Cumulative unrealized losses of equity instruments transferred to retained earnings due to disposal Disposal of partial interests in subsidiaries Balance at December 31	For the Year Ended	For the Year Ended	December 31
		2023 $ (44,206) 61,278 33,192 15,747 - $ 66,011	2022 $ 20,309 (5,975) - (21,952) (36,588) $ (44,206)

47 -

f. Non-controlling interests

Balance at January 1 Share of profit for the year Other comprehensie income (loss) during the year Exchange difference on translation the financial statements of foreign entities Unrealized loss on financial assets at FVTOCI Remeasurement of defined benefit plans Cash dividends from subsidiaries Increase in non-controlling interests Disposal of subsidiaries Non-controlling interests from vested and cash capital increase reserved from employee share options granted by Sunplus Innovation Technology (Note 27) Balance at December 31 g. Treasury shares	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2023 $ 2,472,840 271,873 (5,118) 4,061 15 (459,643) 10,711 - 19,323 $ 2,314,062	2022 $ 2,460,759 454,558 4,510 - (741) (557,998) 3,898 (1,732) 109,586 $ 2,472,840

	Shares
	Transferred to		Shares Held by
	Employees	(In	Its Subsidiaries	Total (In
	Thousands of		(In Thousands	Thousands of
Purpose of Buyback	Shares)		of Shares)	Shares)
Number of shares as of January 1 and
December 31, 2023		-	3,560	3,560
Number of shares as of January 1 and
December 31, 2022		-	3,560	3,560

The Sunplus’ shares held by its subsidiaries at the end of the reporting periods were as follows:

Name of Subsidiary Number of Shares Held (in Thousands of Shares) December 31, 2023 Lin Shin Investment 3,560 December 31, 2022 Lin Shin Investment 3,560	Carrying Amount Market Price $ 63,401 $ 122,286 $ 64,301 $ 79,744

The shares of the Company held by its subsidiaries were treated as treasury shares. The subsidiaries can exercise shareholder’s right on these treasury shares, except for the right to subscribe for the Company’s new shares and voting rights.

48 -

23. REVENUE

Revenue from the sale of goods Rental income from property Other	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2023 $ 5,155,084 257,666 122,671 $ 5,535,421	2022 $ 6,301,115 254,567 150,026 $ 6,705,708

a. Contract information

Revenue from the sale of goods

IC products are sold to agents and customers. The Company determines the sales price of products based on orders. It takes into consideration the past purchases of agents and customers in order to estimate the most likely discount amount and return rate. Based on the determination of revenue, the Company recognizes the amount and the liabilities for refunds (accounted for as other current liabilities).

Other income

Other income mainly comes from software development and royalties.

b. Contract balances

December 31, 2023 December 31, 2022 Notes receivable and trade receivables (Note 9) $ 805,983 $ 887,148 Contract liabilities - current $ 29,544 $ 53,462	January 1, 2022 $ 1,285,944 $ 30,109

The changes in the balance of contract liabilities primarily result from the timing difference between the Company’s performance and the respective customer’s payment.

c. Disaggregation of revenue

Primary geographical markets Asia Taiwan Others Timing of revenue recognition Satisfied at a point in time Satisfied over time		Reportable Segments	Reportable Segments
		Direct Sales
		2023 $ 3,135,376 2,400,029 16 $ 5,535,421 $ 5,263,796 271,625 $ 5,535,421	2022 $ 4,025,105 2,638,008 42,595 $ 6,705,708 $ 6,445,826 259,882 $ 6,705,708

49 -

24. NET (LOSS) PROFIT

Net (loss) profit included the following items:

a. Interest income

Bank deposits Others	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2023 $ 58,344 724 $ 59,068	2022 $ 38,292 15 $ 38,307

b. Other income

Rental income Dividend income Subsidy income (Note 28) Others Other gains and losses Net gain (loss) on financial assets and liabilities Net (loss) gain on financial assets designated as at FVTPL (Note 7) Gain on disposal of subsidiaries Net foreign exchange gain Impairment loss recognized on financial asset Gain on disposal of investments accounted for using equity method Impairment loss recognized on non-financial asset Others	For the Year Ended	For the Year Ended	December 31
	2023 $ 53,197 35,892 11,130 19,736 $ 119,955 For the Year Ended		2022 $ 57,932 117,124 53,733 110,532 $ 281,389 December 31
		2023 $ 98,133 19,485 7,349 (6,009) - - 13,590 $ 132,548	2022 $ (262,869) 71,274 42,642 (6,826) 449,000 (460) 14,441 $ 307,202

c. Other gains and losses

d. Finance costs

Interest on bank loans Interest on lease liabilities Other finance costs	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2023 $ 26,807 4,937 9,398 $ 41,142	2022 $ 11,440 5,113 586 $ 17,139

50 -

e. Depreciation and amortization

An analysis of depreciation by function Operating costs Operating expenses An analysis of amortization by function Operating costs Operating expenses	For the Year Ended	For the Year Ended	December 31
		2023 $ 82,138 298,232 $ 380,370 $ 237 118,584 $ 118,821	2022 $ 82,724 261,335 $ 344,059 $ 165 139,118 $ 139,283

f. Operating expenses directly related to investment properties

Direct operating expenses from investment property that generated rental income g. Employee benefit expense Short-term benefits Post-employment benefits Defined contribution plans Defined benefit plans (Note 21) Share-based payments Equity-settled (Note 27) Other employee benefits Total employee benefit expense An analysis of employee benefit expense by function Operating costs Operating expenses	For the Year Ended	For the Year Ended	For the Year Ended	December 31
	2023 $ 130,462 For the Year Ended			2022 $ 96,497 December 31
		2023 $ 1,715,698 49,051 80 49,131 19,323 41,751 $ 1,825,903 $ 97,474 1,728,429 $ 1,825,903	2022 $ 1,895,632 48,308 (3,034) 45,274 109,586 41,008 $ 2,091,500 $ 96,593 1,994,907 $ 2,091,500

h. Employees’ compensation and remuneration of directors and supervisors

The Sunplus resolved amendments to its Articles of Incorporation to distribute employees’ compensation and remuneration directors at rates of no less than 1% and no higher than 1.5%, respectively, of net profit before income tax, employees’ compensation, and remuneration of directors. There was no employees’ compensation accrued due to loss before income tax for the year ended December 31, 2022.The employees’ compensation and remuneration of directors for the years ended

51 -

December 31, 2022 which have been approved by the Company’s board of directors on March 15, 2023, was as follows:

Accrual rate

Employees’ compensation Remuneration of directors Amount Employees’ compensation Remuneration of directors	For the Year Ended December 31, 2022 1.00% 1.50% For the Year Ended December 31, 2022
	Cash Shares $ 2,216 $ - 3,325 -

If there is a change in the proposed amounts after the annual consolidated financial statements are authorized for issue, the differences are recorded as a change in accounting estimates and will be adjusted in next fascial year.

There is no difference between the actual amounts of employees’ compensation and remuneration of directors paid and the amounts recognized in the consolidated financial statements for the year ended December 31, 2022 and 2021.

Information on compensation of employees and remuneration of directors resolved by the Sunplus’ board of directors is available at the Market Observation Post System website of the Taiwan Stock Exchange.

i. Gain or loss on exchange rate changes

Gain or loss on exchange rate changes
Exchange rate gains Exchange rate losses Net gain	For the Year Ended		December 31
		2023 $ 136,080 (128,731) $ 7,349	2022 $ 254,566 (211,924) $ 42,642

25. INCOME TAXES

a. Income tax recognized in profit or loss

The major components of tax expense were as follows:

Current tax In respect of the current year Adjustments for prior periods Deferred tax In respect of the current year Income tax expense recognized in profit or loss	For the Year Ended	For the Year Ended	December 31
		2023 $ 170,238 (36,246) 133,992 1,111 $ 135,103	2022 $ 246,977 (14,142) 232,835 (20,942) $ 211,893

52 -

A reconciliation of accounting profit and current income tax expenses is as follows:

(Loss) profit before tax Income tax expense calculated at the statutory rate Different statutory rate in other jurisdictions Tax effect of adjusting items: Nondeductible expenses in determining taxable income Temporary differences Current investment credit Additional on undistributed earnings Tax-exempt income Loss carryforwards Differences in income basic tax Current income tax expense Deferred income tax expense Temporary differences Unrecognized loss carryforwards Adjustments for prior years’ tax Foreign income tax expense Income tax expense recognized in profit or loss b. Current tax assets and liabilities Current tax liabilities Income tax payable	For the Year Ended	For the Year Ended	December 31
		2023 2022 $ (86,171) $ 882,350 $ (17,234) $ 176,470 4,173 5,100 19,568 (97,536) 42,256 109,360 (5,820) (11,502) 46 5 (9,943) (15,180) (2,683) 4,068 6,389 4,493 36,752 175,278 1,111 (20,942) 133,478 71,505 (36,246) (14,142) 8 194 $ 135,103 $ 211,893 December 31
		2023 $ 154,794	2022 $ 145,222

c. Deferred tax assets

The Company offset certain deferred tax assets and deferred tax liabilities that met the offset criteria.

The movements of deferred tax assets and deferred tax liabilities were as follows:

For the year ended December 31, 2023

Deferred Tax Assets Temporary differences Unrealized loss on inventories Fixed assets Unrealized sales Exchange (gains) losses Other	Opening Balance Recognized in Profit or Loss Closing Balance $ 36,875 $ (3,979) $ 32,896 10,489 1,001 11,490 - 75 75 5,302 (943) 4,359 6,342 2,735 9,077 $ 59,008 $ (1,111) $ 57,897

53 -

For the year ended December 31, 2022

Deferred Tax Assets Temporary differences Unrealized loss on inventories Fixed assets Unrealized sales Exchange (gains) losses Other	Opening Balance Recognized in Profit or Loss Closing Balance $ 14,687 $ 22,188 $ 36,875 3,290 7,199 10,489 222 (222) - (523) 5,825 5,302 20,390 (14,048) 6,342 $ 38,066 $ 20,942 $ 59,008

d. Deductible temporary differences, unused loss carryforwards and unused investment credits for which no deferred tax assets have been recognized in the consolidated balance sheets

Loss Carryforwards Expiry in 2023 Expiry in 2024 Expiry in 2025 Expiry in 2026 Expiry in 2027 Expiry in 2028 Expiry in 2029 Expiry in 2030 Expiry in 2031 Expiry in 2032 Expiry in 2033 Deductible temporary differences		December 31	December 31
		2023 $ 1,230,753 29,360 27,164 11,155 45,326 130,320 391,411 77,149 21,335 110 217,630 $ 2,181,713 $ 385,341	2022 $ 1,454,571 60,507 28,139 37,440 74,875 130,320 391,411 77,149 21,335 110 - $ 2,275,857 $ 197,052

e. Unused loss carryforwards and tax-exemptions

Loss carryforwards as of December 31, 2023 pertaining to Sunplus:

Unused Amount	Expiry Year
$ 1,144,831	2023
10,909	2027
329,899	2029
48,825	2030
5,675	2031
217,504	2033
$ 1,757,643

Loss carryforwards as of December 31, 2023 pertaining to Sunplus Venture Capital:

Unused	Amount	Expiry Year
$	77,633	2023

54 -

Loss carryforwards as of December 31, 2023 pertaining to Lin Shin Investment:

Unused Amount	Unused Amount	Expiry Year
$	8,289	2023
Loss	carryforwards as of December 31, 2023 pertaining to Sunplus mMedia:
Unused Amount		Expiry Year
$	29,360	2024
	27,164	2025
	11,155	2026
	9,369	2027
	57,427	2028
	25,045	2029
	335	2030
	76	2031
	110	2032
	126	2033
$	160,167

Loss carryforwards as of December 31, 2023 pertaining to Jumplux Technology:

Unused Amount	Unused Amount	Expiry Year
$	25,048	2027
	72,893	2028
	36,467	2029
	27,989	2030
	15,584	2031
$	177,981

f. Income tax assessments

The income tax returns of Sunplus, Generalplus Technology, Sunplus Innovation Technology, Lin Shin Investment, Sunplus Venture Capital, Sunplus Management Consulting, Wei-Young Investment, Jumplux Technology, Sunplus mMedia, through 2021 have been assessed by the tax authorities.

26. (LOSS) EARNINGS PER SHARE

(LOSS) EARNINGS PER SHARE
Basic (loss) gain per share Diluted (loss) earnings per share	Unit: NT$ Per Share For the Year Ended December 31
		2023 $ (0.84) $ (0.84)	2022 $ 0.37 $ 0.37

55 -

The (loss) earnings and weighted average number of ordinary shares outstanding in the computation of (loss) earnings per share were as follows:

Net (loss) profit for the year

(Loss) profit for the year attributable to owners of the Company Effect of potentially dilutive ordinary shares Bonuses for employees (Loss) earnings used in the computation of diluted EPS from continuing operations	For the Year Ended	For the Year Ended	December 31
		2023 $ (493,147) - $ (493,147)	2022 $ 215,899 - $ 215,899

The weighted average number of ordinary shares outstanding (in thousand shares) is as follows:

Weighted average number of ordinary shares used in the computation of basic (loss)earnings per shares Effect of dilutive potential ordinary shares: Bonuses issued to employees Weighted average number of ordinary shares used in the computation of diluted (loss)earnings per share	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2023 588,435 - 588,435	2022 588,435 184 588,619

Sunplus may settle the compensation of employees in cash or shares; therefore, Sunplus assumes that the entire amount of the compensation will be settled in shares, and the resulting potential shares are 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.

27. SHARE-BASED PAYMENT ARRANGEMENTS

a. Restricted shares for employees

In the shareholders’ meeting of Sunplus Innovation Technology on June 22, 2020, the shareholders approved a restricted share plan for employees with a total amount of $20,000 thousand, consisting of 2,000 thousand shares. The aforementioned resolution was declared effectively by the FSC on October 12, 2020.

The first and second restricted share plans were approved by the board of directors of Sunplus Innovation Technology on October 28, 2020 and September 6, 2021. The total amounts both of the two shares was $10,000 thousand, consisting of 1,000 thousand shares and the issuing price of each share was NT$0. Sunplus Innovation Technology has set October 28, 2020 and September 6, 2021 as the grant dates, and November 5, 2020 and September 7, 2021 as the record dates of capital increase. The amounts of the fair value of the granted shares were $75.26 and $163.50 per share.

56 -

After the restricted shares are allocated to employees in accordance with the Sunplus Innovation Technology’s regulations, and they are still working after the expiration of the following vested terms while they meet the performance conditions, the proportions of vested shares are as follows:

1) Those who served in Sunplus Innovation Technology for a year after the grant date with recent personal performance rating before the expiration date reaches the top 35% (included) of Sunplus Innovation Technology, will receive 50% of the number of allocated shares.
2) Those who served in Sunplus Innovation Technology for two year after the grant date with recent personal performance rating before the expiration date reaches the top 35% (included) of Sunplus Innovation Technology, will receive 50% of the number of allocated shares.

When the employee fails to meet the vesting conditions:

1) Resignation (voluntary resignation/retirement/layoff/dismissal): The employee that has not fulfilled the vesting conditions will be deemed to have not met the vesting conditions from the day of resignation. Sunplus Innovation Technology will buy back and cancel the employee’s restricted shares at the original issuing price according to the laws.
2) Unpaid leave: The employee that has not fulfilled the vesting conditions will be restored to the rights and interests from the date of reinstatement, but the vesting period shall be deferred according to the period of unpaid leave.
3) Death: The employee that has not fulfilled the vesting conditions will be deemed to have not met the vesting conditions from the day of death. Sunplus Innovation Technology will buy back and cancel the employee’s restricted shares at the original issuing price according to the laws.
4) Occupational injury:
a) Those who are unable to continue their employment due to occupational injury and have not fulfilled the vesting conditions shall still fulfill the vesting conditions according to regulation 3) Death.
b) Death due to occupational injury may cause the employee not fulfilling the vesting conditions which shall be fulfilled by the heirs from the day of the death of the inherited employee according to regulation 3) Death.
5) Transfer employment: If an employee is requested to transfer to an affiliate company or other company (except transferring to a subsidiary), the restricted shares shall be proceed according to the regulation of "Resignation". However, due to Sunplus Innovation Technology’s operation need, employees for those who were assigned by Sunplus Innovation Technology to be transferred to Sunplus Innovation Technology's affiliates or other companies will not be affected.
6) Employees or their heirs shall receive the transferred shares according to the trust agreement.
7) Share dividends and cash dividends that have been allocated to employees who have not fulfilled the vesting conditions during the vesting period shall not be returned.

The restrictions on the rights of the employees who acquire the restricted shares but have not met the vesting conditions are as follows:

1) The employees cannot sell, pledge, transfer, donate or, in any other way, dispose of these shares.
2) The employees holding these shares are not entitled to receive cash dividends and share dividends.
57 -
3) Employees should immediately place the restricted shares under the trust or custody after the issuance of restricted shares. They shall not request the trustee or custodian to return the restricted shares for any reason before the vesting conditions are fulfilled.

Other agreements were as follow:

Sunplus Innovation Technology shall act on behalf of employees to negotiate with trust institutions or custodian institutions. It may include but not limited to negotiate, sign, revise, extend, cancel and terminate the trust contracts or custody contracts and instructions for the delivery, use and disposal of trust or custody property during the period of trust or custody.

Information on employee restricted share was as follows:

Outstanding shares at January 1 Shares vested Shares forfeited Outstanding shares at December 31	For the Year Ended December 31	For the Year Ended December 31
	2023 Number of Options (In Thousands of Units) 540 (483) (57) -	2022
		Number of Options (In Thousands of Units) 1,495 (955) - 540

Compensation costs recognized were $19,323 thousand and $109,586 thousand for the year ended December 31, 2023 and 2022, respectively.

28. GOVERNMENT GRANTS

In August 2013, SunMedia received a government grant amounting to RMB$16,390 thousand ($79,213 thousand) for the purchase of land on which to build a plant. The amount was recognized as deferred revenue and subsequently transferred to profit or loss over the useful life of the related asset. The total revenue recognized as profit for the years ended December 31, 2023 and 2022 was $1,601 thousand and $1,610 thousand, respectively.

Sunplus applied for the AI on Chip R&D subsidy program from the Ministry of Economic Affairs, and the “Shared Intelligent Computing Chiplet Architecture R&D Program” was reviewed and approved on November 20, 2020. The approved subsidy amounted to $115,356 thousand. The subsidy program has not yet been concluded on May 31, 2023. As of December 31, 2023 and 2022, the accumulated subsidies received were $115,356 thousand and $113,706 thousand, respectively. The amounts of the recognized subsidy income for the year ended December 31, 2023 and 2022 was $1,020 thousand and $43,516 thousand. In addition, Sunplus has a special account for subsidies in accordance with regulations. The monthly withdrawal amount shall be withdrawn according to the monthly expenditure summary statement, and the withdrawal amount shall not be higher than the expenditure amount. The special account for subsidies has been closed for payment of funds to the Treasury and due diligence has been completed in accordance with the deed of mutual covenant.

58 -

29. LIQUIDATION AND DISPOSAL OF SUBSIDIARIES

Liquidation of subsidiaries

a. Analysis of assets and liabilities from liquidation

The Company completed the liquidation of its subsidiaries, Jsilicon Technology, Giant Kingdom and Giant Best on August 30 and September 5, 2022, respectively. Giant Best has finished the incorporation registration; however, the payment has not yet remitted yet.

	Jsilicon	Jsilicon
	Technology		Giant	Kingdom
Current assets
Cash and cash equivalents	$	28,228	$	216
Net assets disposed of	$	28,228	$	216
Gain (loss) on liquidation of subsidiaries
	Jsilicon
	Technology		Giant	Kingdom
Consideration received	$	28,228	$	216
Net assets disposed of		(28,228)		(216)
Gain (loss) on disposals	$	-	$	-
Net cash inflow on liquidation of subsidiaries
	Jsilicon
	Technology		Giant	Kingdom
Consideration received in cash and cash equivalents	$	28,228	$	216
Less: Cash and cash equivalent balances disposal of		(28,228)		(216)
	$	-	$	-

b. Gain (loss) on liquidation of subsidiaries
c. Net cash inflow on liquidation of subsidiaries

Disposal of subsidiaries

a. Analysis of assets and liabilities from disposal

The Company completed the disposal of its subsidiaries, GenKi Tek Technology on June 20, 2022 and Magic Sky on June 22, 2022, respectively.

			GenKiTek	GenKiTek
	Magic	Sky	Technology
Current assets
Cash and cash equivalents	$	21	$	2,352
Other current assets		-		557
Inventories		-		151
Other receivables		-		1
				(Continued)

59 -

				GenKiTek	GenKiTek
		Magic Sky		Technology
	Non-current assets
	Property, plant and equipment	$	-	$	470
	Intangible assets		-		3,257
	Right-of-use assets		-		108
	Refundable deposits		-		121
	Current liabilities
	Payables		-		(952)
	Lease liabilities		-		(115)
	Other current liabilities		-		(1,330)
	Net assets disposed of	$	21	$	4,620
				(Concluded)
b.	Gain (loss) on disposal of subsidiaries
				GenKiTek
		Magic Sky		Technology
	Consideration received	$	86,000	$	200
	Net assets disposal of		(21)		(4,620)
	Reclassification of other comprehensive income in respect of the
	subsidiaries		(12,017)		-
	Non-controlling interests		-		1,732
	Gain (loss) on disposals	$	73,962	$	(2,688)
c.	Net cash inflow (outflow) on disposal of subsidiaries
				GenKiTek
		Magic Sky		Technology
	Consideration received in cash and cash equivalents	$	86,000	$	200
	Less: Cash and cash equivalent balances disposal of		(21)		(2,352)
		$	85,979	$	(2,152)

30. EQUITY TRANSACTIONS WITH NON-CONTROLLING INTERESTS

In August 2022, Sunplus and Sunext Technology had acquired the shares of Sunext Technology from Sunext Technology’s non-controlling interest by cash consideration, resulting in an increase in the overall shareholding ratio from 92.55% to 100.00%.

In September 2022, Sunplus Innovation Technology vested restricted shares, resulting in a decrease in the overall shareholding ratio from 58.36% to 57.88%.

In November 2022, Sunplus Innovation Technology vested restricted shares, resulting in a decrease in the overall shareholding ratio from 57.88% to 57.38%.

In January 2023, Sunplus Innovation Technology vested restricted shares, resulting in a decrease in the overall shareholding ratio from 57.38% to 57.37%.

60 -

In September 2023, Sunplus Innovation Technology vested restricted shares, resulting in a decrease in the overall shareholding ratio from 57.37% to 56.92%.

In July 2023, Sunplus Shanghai held a 2.56% equity interest in Beijing Sunplus APP, and transferred the equity interest to Giant Rock in November 2023, with Sunplus subsidiaries combining to hold 100% of the equity interest.

In October 2023, Sunplus Shanghai transferred its equity interest in Chongqing CQPlus1 to Sunplus Prof-tek (Shenzhen), with Sunplus subsidiaries combining to hold 100% of the equity interest.

The above transactions were accounted for as equity transactions since the Company did not cease to have control over these subsidiaries.

2023

		Sunplus
		Innovation
		Technology	Sunplus APP
The proportionate share of the carrying amount of the net assets of
the subsidiary transferred (from) to non-controlling interests		$ (14,314)	$	70
Differences recognized from equity transactions		$ (14,314)	$	70
Line items adjusted for equity transactions
Capital surplus - changes in percentage of ownership interests in
subsidiaries		$ (14,314)	$	70
2022
		Sunplus
		Innovation	Sunext
		Technology	Technology
Cash consideration paid		$ -	$	(19,384)
The proportionate share of the carrying amount of the net assets of
the subsidiary transferred (from) to non-controlling interests		(22,360)		18,462
Differences recognized from equity transactions		$ (22,360)	$	(922)
	Sunplus
	Innovation	Sunext
	Technology	Technology		Total
Line items adjusted for equity transactions
Capital surplus - changes in percentage of
ownership interests in subsidiaries	$ (22,360)	$ -	$	(22,360)
Capital surplus - difference between
consideration received or paid and the carrying
amount of the subsidiaries’ net assets during
actual disposal or acquisition	-	(922)		(922)
	$ (22,360)	$ (922)	$	(23,282)

61 -

31. CAPITAL MANAGEMENT

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

The capital structure of the Company consists of net debt (borrowings offset by cash and cash equivalents) and equity of the Company (comprising issued capital, reserves, retained earnings and other equity) attributable to owners of the Company.

The Company is not subject to any externally imposed capital requirements.

32. FINANCIAL INSTRUMENTS

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

The management of the Company considers that the fair values of financial assets and financial liabilities that are not measured at fair value approximate their fair values.

b. Fair value of financial instruments that are measured at fair value on recurring basis.
1) Fair value hierarchy

December 31, 2023 Financial assets at FVTPL Mutual funds Domestic/foreign listed shares Domestic/foreign unlisted shares Domestic/foreign- CB Limited partnership Financial assets at FVTOCI Domestic listed shares Domestic/foreign unlisted shares December 31, 2022 Financial assets at FVTPL Mutual funds Domestic listed shares Domestic/foreign unlisted shares Limited partnership	Level 1 $ 760,044 336,187 68,882 55,259 - $ 1,220,372 $ 55,466 - $ 55,466 Level 1 $ 503,173 92,185 85,218 - $ 680,576	Level 2 $ - - - - - $ - $ - - $ - Level 2 $ - - - - $ -	Level 3 $ - - 661,056 - 875,228 $ 1,536,284 $ - 324,387 $ 324,387 Level 3 $ - - 748,692 773,718 $ 1,522,410	Total $ 760,044 336,187 729,938 55,259 875,228 $ 2,756,656 $ 55,466 324,387 $ 379,853 Total $ 503,173 92,185 833,910 773,718 $ 2,202,986 (Continued)

62 -

Financial assets at FVTOCI Domestic listed shares Domestic/foreign unlisted shares Domestic private listed shares	Level 1 $ 28,957 - - $ 28,957	Level 2 $ - - - $ -	Level 3 $ - 262,258 4,340 $ 266,598	Total $ 28,957 262,258 4,340 $ 295,555

(Concluded)

There were no transfers between Levels 1 and 2 in the current and prior periods.

2) Reconciliation of Level 3 fair value measurements of financial instruments

For the Year Ended December 31, 2023

Financial Assets
Financial Assets
at FVTPL
Financial Assets
at FVTOCI
Balance at January 1, 2023
$ 1,522,410
$ 266,598

Recognized in profit or loss
(9,449)
-
Recognized in other comprehensive
income

-
80,814
Purchases
202,140
15,290
Disposals
(2,130)
(27,378)
Transfer out of Level 3
(28,701)
(8,738)
Refund of shares through capital
reduction of the invested company
(147,796)
-
Effect of exchange rate changes

(190)

(2,199)

Balance at December 31, 2023
$ 1,536,284
$ 324,387

For the Year Ended December 31, 2022
Financial Assets
Financial Assets
at FVTPL
Financial Assets
at FVTOCI
Balance at January 1, 2022
$ 1,763,252
$ 126,770

Recognized in profit or loss
(170,998)
-
Recognized in other comprehensive
income
-
10,296
Purchases
318,693
127,573
Disposals
(358,485)
-
Transfer out of Level 3
(69,300)
-
Effect of exchange rate changes

39,248

1,959

Balance at December 31, 2022
$ 1,522,410
$ 266,598

Total
$ 1,789,008
(9,449)
80,814
217,430

(29,508)

(37,439)
(147,796)

(2,389)
$ 1,860,671
Total
$ 1,890,022
(170,998)
10,296
446,266
(358,485)
(69,300)

41,207
$ 1,789,008

63 -
3) Valuation techniques and inputs applied for Level 3 fair value measurement
a) The fair values of unlisted equity securities - domestic and foreign were determined using the market approach. The significant unobservable inputs used are listed in the table below. An increase in the price-to-book ratio or price-sales ratio or a decrease in the discount for lack of marketability used in isolation would result in increases in fair value.

Price-to-book ratio Price-to-sales ratio Discount for lack of marketability	December 31
	2023 2022 0.840-7.460 0.745-4.230 0.770-10.770 0.788-4.570 20%-30% 10%-30%

b) The fair values of unlisted shares and limited partnership were determined using the asset-based approach. The Company assesses that the amount of its net assets attributable to its investment approaches the fair value of the equity investment. The Company assesses the total value of the individual assets and liabilities covered by the target to reflect the overall value of the business.
c) The fair values of unlisted shares were determined using the income approach. In this approach, the discounted cash flow method was used to capture the present value of the expected future economic benefits to be derived from the ownership of these investees. The significant unobservable inputs used are listed in the table below. An increase in long-term revenue growth rates or a decrease in the weighted average cost of capital (WACC) or discount for lack of marketability used in isolation would result in increases in fair value.

Long-term revenue growth ratio Weighted average cost of capital ratio Discount for lack of marketability	December 31
	2023 2022 - 2.00% - 8.646% - 30%

d) Domestic listed private equity investment refers to the transaction price of the listed company’s stock in the active market, and uses the unobservable input value as discount for lack of marketability to determine the value of the evaluation target.

c.	Discount for lack of marketability Categories of financial instruments Financial assets Fair value through profit or loss (FVTPL) Financial assets at amortized cost (1) Financial assets at (FVTOCI) Equity instruments Financial liabilities Measured at amortized cost (2)	December 31
		2023 2022 21.7% 54.8% December 31
		2023 2022 $ 2,756,656 $ 2,202,986 5,351,891 5,844,587 379,853 295,555 1,807,824 1,730,973

64 -
1) The balances include financial assets at amortized cost, which comprise cash and cash equivalents, notes and trade receivables, other receivables, other financial assets and refundable deposits.
2) The balances include financial liabilities at amortized cost, which comprise short-term borrowings, accounts payable, current portion of long-term bank borrowings, long-term borrowings and guarantee deposits.

d. Financial risk management objectives and policies

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

The Corporate Treasury function reported quarterly to the Company's risk management committee.

1) Market risk

The Company's activities exposed it primarily to the financial risks of changes in foreign currency exchange rates (see (a) below) and interest rates (see (b) below). The Company entered into a variety of derivative financial instruments to manage its exposure to foreign currency risk and interest rate risk, including:

a) Foreign currency risk

A part of the Company’s cash flows is in foreign currency, and the use by management of derivative financial instruments is for hedging adverse changes in exchange rates, not for profit.

For exchange risk management, each foreign-currency item of net assets and liabilities is reviewed regularly. In addition, before obtaining foreign loans, the Company considers the cost of the hedging instrument and the hedging period.

The carrying amounts of the Company's foreign currency-denominated monetary assets and monetary liabilities (including those eliminated on consolidation) at the end of the reporting period were refer to Note 36.

Sensitivity analysis

The Company was mainly exposed to the USD and RMB.

The following table details the Company sensitivity to a US$1.00 and RMB1.00 increase and decrease in the New Taiwan dollar (the functional currency) against the relevant foreign currencies. The sensitivity analysis considers the currencies of USD and RMB in circulation, and adjusts the end-of-term conversion to exchange rate change of $1.00. The sensitivity analysis covers cash and cash equivalents, notes and accounts receivable, other receivables, other financial assets, long-term and short-term loans, accounts payable, other accounts payable and deposit margins. A negative number below indicates a decrease in post-tax profit associated with the New Taiwan dollar strengthening $1.00 against USD and RMB. For a $1.00 weakening of the New Taiwan dollar against the relevant currency, there would be an equal and opposite impact on post-tax profit, and the balances below would be positive.

65 -

Profit or loss Profit or loss	USD Impact
	For the Year Ended December 31
	2023 2022 $ (29,983) $ 25,645 RMB Impact
	For the Year Ended December 31
	2023 2022 $ (9,451) $ (11,905)

b) Interest rate risk

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

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

Fair value interest rate risk Financial assets Financial liabilities Cash flow interest rate risk Financial assets Financial liabilities	December 31 2023 2022 $ 3,430,238 $ 2,895,144 227,605 210,761 928,531 1,806,101 1,200,000 1,042,000

Sensitivity analysis

The sensitivity analyses below were determined based on the Company’s exposure to interest rates for both derivatives and non-derivative instruments at the end of the reporting period. For floating rate liabilities, the analysis was prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding for the whole year. Basis points of 0.125% increase or decrease was used when reporting interest rate risk internally to key management personnel and represents management's assessment of the reasonably possible change in interest rates.

If interest rates had been increased/decreased by 0.125% and all other variables held constant, the Company’s post-tax profit for the years ended December 31, 2023 and 2022 would decrease/increase by $339 thousand and increase/decrease $955 thousand, respectively.

c) Other price risk

The Company was exposed to equity price risk through its investments in listed equity securities. Equity investments are held for strategic rather than trading purposes. The Company does not actively trade these investments.

66 -

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

Had the prices of financial assets at FVTPL been 1% higher/lower, post-tax profit for the year ended December 31, 2023 and 2022 would have increased/decreased by $27,567 thousand and $22,030 thousand, respectively.

Had the prices of financial assets at FVTOCI been 1% higher/lower, post-tax profit for the years ended December 31, 2023 and 2022 would have increased/decreased by $3,799 thousand and $2,956 thousand, respectively.

2) Credit risk

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

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

The credit risk on liquid funds and derivatives was limited because the counterparties are banks with high credit ratings assigned by international credit-rating agencies.

Trade receivables consisted of a large number of customers, spread across diverse industries and geographical areas. Ongoing credit evaluation is performed on the financial condition of trade receivables and, where appropriate, credit guarantee insurance cover is purchased.

The Company’s concentration of credit risk of 64% and 60% in total trade receivables as of December 31, 2023 and 2022, respectively, was related to the five largest customers within the property construction business segment. The Company believed that the concentration of credit risk is relatively insignificant for the remaining accounts receivables.

3) Liquidity risk

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

The Company relies on bank borrowings as a significant source of liquidity. As of December 31, 2023 and 2022, the Company had available unutilized overdraft and financing facilities refer to the following instruction.

a) Liquidity and interest risk rate tables

The following table details the Company’s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The tables had been drawn up based on the undiscounted cash flows of financial liabilities from the earliest date on which the Company can be required to pay. The tables included both interest and principal cash flows.

67 -

December 31, 2023

On Demand
or Less than
1 Month
1-3 Months
More than 3
Months to 1
Year
Over 1 Year
to 5 Years
Non-derivative financial
liabilities
Non-interest bearing
$ 383,822 $ 95,702 $ 1,567 $ 1
Lease liabilities
1,073
2,287
8,699
39,377
Variable interest rate liabilities
1,323
27,654
270,295
929,705
Fixed interest rate liabilities

-

-

650

4,096

$ 386,218
$ 125,643
$ 281,211
$ 973,179

Additional information about the maturity analysis for lease liabilities:
Less than
1 Year
1-5 Years
5-10 Years 10-15 Years 15-20 Years
Lease liabilities
$ 12,059
$ 39,377
$ 48,321
$ 45,617
$ 38,180

5+ Years
$ -

226,586

-

165,626
$ 392,212
20+ Years
$ 94,468

December 31, 2022

On Demand
or Less than
1 Month
1-3 Months
More than 3
Months to 1
Year
Over 1 Year
to 5 Years
Non-derivative financial
liabilities
Non-interest bearing
$ 289,228 $ 225,048 $ 5,154 $ 1
Lease liabilities
1,529
3,204
14,237
41,782
Variable interest rate liabilities
1,072
42,000
- 1,000,000
Fixed interest rate liabilities

-

-

-

4,453

$ 291,829
$ 270,252
$ 19,391
$ 1,046,236

Additional information about the maturity analysis for lease liabilities:
Less than
1 Year
1-5 Years
5-10 Years 10-15 Years 15-20 Years
Lease liabilities
$ 18,970
$ 41,782
$ 48,321
$ 47,645
$ 38,180

5+ Years
$ -

236,250

-

182,057

$ 418,307

20+ Years
$ 102,104

b) Financing facilities

Unsecured bank overdraft facility, review annually and payable on demand Amount used Amount unused		December 31	December 31
		2023 $ 1,227,635 3,165,646 $ 4,393,281	2022 $ 1,085,567 3,790,209 $ 4,875,776

68 -

33. TRANSACTIONS WITH RELATED PARTIES

Balances and transactions between the Company and its subsidiaries had been eliminated on consolidation and are not disclosed in this note. Details of transactions between the Company and other related parties are disclosed below.

a. Name and relationship of related parties

Name iCatch Technology AutoSys (TW) Co., Ltd. eNeural Technologies, Inc.	Relationship with the Company
	Associate Associate (Note) Associate

Note: It is an associate of the Company; subsidiary of Autosys Co., Ltd..

b. Sales of goods

Line Items Related Party Categories Sales Associates	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2023 $ 64,655	2022 $ 45,790

Sales price to related parties is based on cost and market price. The sales terms to related parties were similar to those with external customers.

c. Receivables from related parties (excluding loans to related parties)

Account Item Related Party Trade receivables Associates Other receivables Associates		December	31
		2023 $ 1,513 $ 630	2022 $ 6,134 $ 535

There were no guarantees on outstanding receivables from related parties. For the years ended December 31, 2023 and 2022, no impairment loss was recognized for trade receivables from related parties.

d. Prepayments (excluding loans to related parties)

Line Item Related Party Category Other current assets Associate e. Guarantee deposits received (excluding loans to related parties) Line Item Related Party Category Other liabilities Associate		December	31
		2023 $ 1,385 December	2022 $ - 31
		2023 $ 666	2022 $ -

69 -

f. Other transactions with related parties

Account Item Related Parties Types Operating expenses Associates Non-operating income and expenses Associates		December	31
		2023 $ - $ 15,678	2022 $ 114 $ 12,934

Administrative support services price between the Company and the related parties were negotiated and were thus not comparable with those in the market. There are no other available transactions to be compared with.

The pricing and the payment terms of the lease contract between the Company and the related parties were similar to those with external customers.

g. Compensation of key management personnel

Short-term employee benefits Post-employment benefits	For the Year Ended	For the Year Ended	December 31
		2023 $ 93,940 1,049 $ 94,989	2022 $ 143,591 1,200 $ 144,791

The remuneration of directors and other key management personnel was determined by the Compensation Committee in accordance with individual performance and market trends.

34. PLEDGED OR MORTGAGED ASSETS

The following assets of the Company have been pledged or mortgaged as guarantees for endorsement, loan, purchase quota, leased land and customs clearance:

Buildings, net Pledged time deposits (classified as other financial assets - non-current)		December 31	December 31
		2023 $ 518,128 13,500 $ 531,628	2022 $ 537,529 15,343 $ 552,872

35. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

Significant commitment of the Company as of the end of the reporting period, excluding these disclosed in other note, were as follow:

Long term purchase contract:

Generalplus Technology signed a long-term supply contract with the supplier in December 2021. According to the contract agreed that supply quantity and price from January 1, 2022 to June 30, 2025.

70 -

According to the contract, Generalplus has been paid USD$3,456 thousand to the supplier as a guarantee to ensure the supply of production capacity. The contract stipulates that if fail to fulfill the agreed purchase quantity or supply quantity, the other party has the right to demand a certain amount of compensation.

36. EXCHANGE RATE OF FINANCIAL ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

The Company’s significant financial assets and liabilities denominated in foreign currencies aggregated by the foreign currencies other than functional currencies of the entities in the Company and the related exchange rates between the foreign currencies and the respective functional currencies were as follows:

December 31, 2023
		Foreign
		Currency	Exchange	Carrying
	(In Thousands)		Rate	Amount
Financial assets
Monetary items
USD	$	42,553	30.705	$ 1,306,590
JPY		29,434	0.217	6,387
CNY		17,907	4.327	77,484
HKD		91	3.929	358
GBP		3	39.150	117
Nonmonetary items
CHF		583	36.485	21,271
Financial liabilities
Monetary items
USD		12,570	30.705	385,962
CNY		8,456	4.327	36,589
December 31, 2022
		Foreign
		Currency	Exchange	Carrying
	(In Thousands)		Rate	Amount
Financial assets
Monetary items
USD	$	46,195	30.710	$ 1,418,648
JPY		6,762	0.232	1,569
CNY		910	4.408	4,011
HKD		111	3.938	437
GBP		3	37.090	111
EUR		1	32.720	33
Nonmonetary items
CHF		541	33.205	17,953
Financial liabilities
Monetary items
USD		20,550	30.710	631,091
JPY		1,181	0.232	274
CNY		12,815	4.408	56,489

71 -

For the years ended December 31, 2023 and 2022, (realized and unrealized) net foreign exchange gains (losses) were $7,349 thousand and $(42,642) thousand, respectively. It is impractical to disclose net foreign exchange losses by each significant foreign currency due to the variety of the foreign currency transactions and functional currencies of the entities in the Company.

37. ADDITIONAL DISCLOSURES

a. Information about significant transactions and investees and b. Information on investees:
1) Financings provided: Table 1 (attached)
2) Endorsement/guarantee provided: No
3) Marketable securities held: Table 2 (attached)
4) Marketable securities acquired and disposed of at costs or prices of at least NT$300 million or 20% of the paid-in capital: Table 3 (attached)
5) Acquisition of individual real estate at costs of at least NT$300 million or 20% of the paid-in capital: No.
6) Disposal of individual real estate at prices of at least NT$300 million or 20% of the paid-in capital: No.
7) Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital: No
8) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital: No.
9) Trading in derivative instruments: No.
10) Intercompany relationships and significant intercompany transactions: Table 4 (attached)
b. Information on investees (Table 5)
c. Information on investments in mainland China
1) Information on any investee company in mainland China, showing the name, principal business activities, paid-in capital, method of investment, inward and outward remittance of funds, ownership percentage, net income of investees, investment income or loss, carrying amount of the investment at the end of the period, repatriations of investment income, and limit on the amount of investment in the mainland China area. (Table 6)
2) Any of the following significant transactions with investee companies in mainland China, either directly or indirectly through a third party, and their prices, payment terms, and unrealized gains or losses: (Table 7)
- a) The amount and percentage of purchases and the balance and percentage of the related payables at the end of the year.
72 -
b) The amount and percentage of sales and the balance and percentage of the related receivables at the end of the year.
c) The amount of property transactions and the amount of the resultant gains or losses.
d) The balance of negotiable instrument endorsements or guarantees or pledges of collateral at the end of the year and the purposes.
e) The highest balance, the end of period balance, the interest rate range, and total current period interest with respect to financing of funds.
f) Other transactions that have a material effect on the profit or loss for the year or on the financial position, such as the rendering or receiving of services.
d. Information of major shareholders ： List all shareholders with ownership of 5% or greater showing the name of the shareholder, the number of shares owned, and percentage of ownership of each shareholder (Table 8)

Except for Table 1 to Table 8, there’s no further information about other significant transactions.

38. SEGMENT INFORMATION

Information reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance focuses on types of goods provided. Since all products have similar economic characteristics and product selling is centralized, the Company reports information as referring to one segment. Thus, the information of the operating segment is the same as that presented in the accompanying financial statements. That is, the revenue by sub segment and operating results for the years ended December 31, 2023 and 2022 are shown in the accompanying consolidated income statements, and the assets by segment as of December 31, 2023 and 2022 are shown in the accompanying consolidated balance sheets.

a. Segment revenues and results

The following was an analysis of the Company’s operating revenue and results by reportable segment.

IC design Income from lease of property Other income	Segment Revenue	Segment Revenue	Segment Revenue
	For the Year Ended December 31
		2023 $ 5,155,084 257,666 122,671 $ 5,535,421	2022 $ 6,301,115 254,567 150,026 $ 6,705,708

b. Geographical information

The Company operates in two principal geographical areas - the Asia and Taiwan.

73 -

The Company’s revenue from external customers by location of operations and information about its non-current assets by location of assets is detailed below.

Revenue from External Customers For the Year Ended December 31 2023 2022 $ 3,135,376 $ 4,025,105 2,400,029 2,638,008 16 42,595 $ 5,535,421 $ 6,705,708	Non-current Assets	Non-current Assets

	December 31
2023 $ 3,135,376 2,400,029 16 $ 5,535,421	2023 $ 1,721,127 1,284,422 - $ 3,005,549	2022 $ 1,848,012 1,423,109 - $ 3,271,121

Non-current assets exclude financial instruments, deferred tax assets and other non-current assets.

c. Information about major customers

Single customers contributing 10% or more to the Company’s revenue were as follows:

Customer A Customer B	For the Year Ended December 31
	2023 2022 $ 904,618 $ 1,026,125 (Note) 939,858

Note: The amount of revenue does not reach 10% of the Company’s net revenue.

74 -

TABLE 1

SUNPLUS TECHNOLOGY COMPANY LIMITED AND SUBSIDIARIES

FINANCINGS PROVIDED

FOR THE YEAR ENDED DECEMBER 31, 2023

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

No.	Lender	Borrower	Financial Statement Account	Related Parties	Highest Balance for the Period	Ending Balance	Actual Borrowing Amount	Interest Rate	Nature of Financing	Business Transaction Amounts	Reasons for Short-term Financing	Allowance for Bad Debt	Co	llateral	Financing Limit for Each Borrower	Aggregate Financing Limit
													Item	Value
1 2 3	Sunplus Shanghai Sunplus Venture Capital Lin Shin Investment	SunMedia SunMedia SunMedia	Receivables from related parties Receivables from related parties Receivables from related parties	Yes Yes Yes	$ 362,295 50,672 186,963	$ 326,256 - 61,410	$ 326,256 - 61,410	1.80% - 4.15%	Note 1 Note 1 Note 1	$ - - -	Note 2 Note 3 Note 4	$ - - -	- - -	$ - - -	$ 425,476 (Note 5) 585,134 (Note 6) 398,907 (Note 7)	$ 425,476 (Note 5) 585,134 (Note 6) 398,907 (Note 7)

Note 1: Short-term financing.

Note 2: Sunplus Shanghai provided funds for the operating needs of SunMedia.

Note 3: Sunplus Venture Capital provided funds for the operating needs of SunMedia.
Note 4: Lin Shin Investment provided funds for the operating needs of SunMedia.
Note 5: Sunplus Shanghai and the loans are all foreign companies whose parent company directly and indirectly holds 100% of the voting shares. When the short-term financing funds need to be engaged in capital lending, the capital loan and the individual amount and total amount should not exceed the capital loan. The enterprise's net worth should not exceed to 60%, and its period should not exceed more than 2 years.
Note 6: The total amount of all guarantees issued and the individual amount of each guarantee should not exceed 40% of Sunplus Venture Capital’s net equity as of its latest financial statements.
Note 7: The total amount of all guarantees issued and the individual amount of each guarantee should not exceed 40% of Lin Shin Investment’s net equity as of its latest financial statements.
75 -

TABLE 2

SUNPLUS TECHNOLOGY COMPANY LIMITED AND SUBSIDIARIES

MARKETABLE SECURITIES HELD FOR THE YEAR ENDED DECEMBER 31, 2023 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Holding Company Name	Type and Name of Marketable Security	Relationship with the Holding Company	Financial Statement Account		Decembe	r 31, 2023		Note
				Shares or Units	Carrying Amount	Percentage of Ownership (%)	Fair Value
Sunplus Lin Shin Investment Sunplus Venture Capital	PineBridge Global ESG Quantitative Bond Fund Nomura Taiwan Money Market Fund Nomura Global Short Duration Bond Fund TriKnight Capital Corporation Intudo Ventures II,L.P. Intudo Ventures III,L.P. Tesla, Inc. AMED Ventures I,L.P. Intudo Istimewa II, LLC Intudo Istimewa I, LLC AMED Ventures II,L.P. Vertex Growth II (SG) L.P. Foxtron Vehicle Technologies Co., Ltd. Intudo Ventures I,L.P. eYs3D Microelectronics, Inc. AnHorn Holdings Inc. GeneOne Diagnostics Corporation Airoha Technology Corp. SYNCOMM TECHNOLOGY CORP. LOTES CO., LTD GLORIA MATERIAL TECHNOLOGY CORP Evergreen Aviation Technologies Corporation Mercuries F&B Co., Ltd. Bora Pharmaceuticals Co., LTD. 3rd Domestic Unsecured Convertible Bond GOLD CIRCUIT ELECTRONICS LTD. 2nd Domestic Unsecured Convertible Bond Sercomm Corp. 7th Domestic Unsecured Convertible Bonds Horizon Securities Co., Ltd. 2nd Domestic Unsecured Convertible Bond Yulon Finance Corporation 2nd Domestic Unsecured Convertible Bond Enterex International Limited - Convertible Bonds Genius Vision Digital Inc. Lead Sun Corporation AI3 Co. Prine Rich International Co., Ltd. Sunplus Jih Sun Vietnam Opportunity Fund Eastspring Investments India Equity Fund Lin BioScience, Inc. GIGA-BYTE TECHNOLOGY CO., LTD. ASE Technology Holding Co., Ltd.	- - - - - - - - - - - - - - - - - ~~-~~ ~~-~~ ~~-~~ ~~-~~ - - - - - - - - - - - - Parent company - - - - -	Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current	542,594 1,499,784 467,959 28,841,800 - - 4,433 - - - - - 1,950,000 - 1,190,476 581,396 1,709,974 60,000 500,000 10,000 150,000 575,000 350,000 70,000 80,000 110,000 50,000 150,000 30,000 300,000 1,000,000 33,130 33,000 3,559,996 500,000 67,996 150,000 80,000 60,000	$ 4,979 25,113 4,995 263,738 179,463 25,037 33,822 18,220 15,338 15,259 16,328 4,394 86,970 - 15,310 76,456 - 34,620 18,350 10,700 7,328 62,387 33,516 8,106 9,120 12,133 5,035 15,255 - - 37,304 431 1,790 122,286 4,090 3,307 17,016 21,280 8,100	- - - 4 6 1 - 2 7 14 1 - - - 1 2 13 - - - - - - - - - - - - 1 11 1 - 1 - - - - -	$ 4,979 25,113 4,995 263,738 179,463 25,037 33,822 18,220 15,338 15,259 16,328 4,394 86,970 - 15,310 76,456 - 34,620 18,350 10,700 7,328 62,387 33,516 8,106 9,120 12,133 5,035 15,255 - - 37,304 431 1,790 122,286 4,090 3,307 17,016 21,280 8,100	Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 2 Note 2 Note 2 Note 2 Note 2 Note 2 Note 2 Note 2 Note 2 Note 2 Note 2 Note 1 Note 1 Note 1 Note 1 Note 1 Note 2 Note 3 Note 3 Note 2 Note 2 Note 2

(Continued)

76 -

Holding Company Name	Type and Name of Marketable Security	Relationship with the Holding Company	Financial Statement Account		Decembe	r 31, 2023		Note
				Shares or Units	Carrying Amount	Percentage of Ownership (%)	Fair Value
Sunplus Venture Capital Wei-Young Investment Sunplus Shanghai Generalplus Technology Sunplus Innovation Technology Giant Rock Chongqing CQPLus1	SHINFOX ENERGY CO., LTD. 1ST DOMESTIC SECURED CONVERTIBLE BOND Genius Vision Digital Co., Ltd. M-POWER INFORMATION Co., LTD. eWave System,Inc. Book4u Company Limited Simple Act Inc. HUIJIA HEALTH LIFE TECHNOLOGY CO., LTD. Foryou Venture Capital Limited Partnership Foryou Private Equity Limited Partnership San Neng Group Holdings Co., LTD. Raynergy Tek Inc. CDIB Capital Growth Partners L.P. TIEF fund I L.P. Intudo Ventures I,L.P. TGVest Capital Limited Partnership Intelligo Technology Inc. Pacific 8 Ventures Fund II,L.P. Cerulean Asset Management Co., Ltd. CSVI Ventures, L.P. Feature Integration Technology Inc. Innorich Venture Capital Corp. Protect Life International Biomedical Inc. Promise Technology Inc. Neuchips Inc. - Preference shares Neuchips Inc. Feedback Technology Corp. ChipMOS TECHNOLOGIES INC. GF Money Market Fund B GF Daily Income Money Market Fund B GF Huo Qi Bao Money Market Fd B Ready Sun Investment Group Fund Franklin Templeton Sinoam Money Market Fund Yuanta De-Li Money Market Fund Franklin Templeton Sinoam Money Market Fund Yuanta De-Li Money Market Fund Taishin 1699 Money Market Fund Taishin Ta-Chong Money Market Fund FUBON CHI-HSIANG MONEY MARKET FUND CTBC Hwa-win Money Market Fund Xiamen Xm-plus Technology Co., Ltd. Vicoretek Co., Ltd.	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	Financial assets at FVTPL - current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - non-current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - non-current Financial assets at FVTOCI - non-current	50,000 375,000 12,014,712 1,833,333 9,375 1,900,000 1,049,000 5,000,000 - 900,000 5,690,500 - - - - 336,502 - - - 602,020 3,000,000 469,110 962,000 585,000 2,100,000 50,000 700,000 11,400,000 5,480,000 8,340,000 - 1,934,557 2,568,841 1,934,557 2,568,841 10,133,835 11,733,616 8,764,601 7,962,421 11,150,000 -	$ 5,610 - 127,501 - - - 1,650 69,415 38,981 36,630 37,330 103,161 46,583 103,541 99,102 12,240 10,639 23,799 28,512 43,105 17,052 1,570 12,362 21,821 47,900 4,775 29,575 49,657 24,214 36,120 40,151 20,556 43,068 20,556 43,068 141,291 171,417 141,140 90,096 218,167 142,487	- 1 7 22 - 10 5 10 5 1 12 2 7 8 5 1 2 11 2 2 6 3 1 1 2 - - - - - 16 - - - - - - - - 13 8	$ 5,610 - 127,501 - - - 1,650 69,415 38,981 36,630 37,330 103,161 46,583 103,541 99,102 12,240 10,639 23,799 28,512 43,105 17,052 1,570 12,362 21,821 47,900 4,775 29,575 49,657 24,214 36,120 40,151 20,556 43,068 20,556 43,068 141,291 171,417 141,140 90,096 218,167 142,487	Note 2 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 2 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 2 Note 1 Note 1 Note 2 Note 1 Note 1 Note 2 Note 2 Note 3 Note 3 Note 3 Note 1 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 1 Note 1

Note 1: The market value was based on the carrying amount as of December 31 2023.

Note 2: The market value was based on the closing price as of December 31, 2023.

Note 3: The market value was based on the net asset value of the fund as of December 31, 2023.

(Concluded)

77 -

TABLE 3

SUNPLUS TECHNOLOGY COMPANY LIMITED AND SUBSIDIARIES

MARKETABLE SECURITIES ACQUIRED OR DISPOSED OF AT COSTS OR PRICES OF AT LEAST NT$300 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE YEAR ENDED DECEMBER 31, 2023

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

Company Name	Type and Name of Marketable Securities (Note 1)	Financial Statement Account	Counterparty (Note 2)	Relationship (Note 2)	Beginning Balance	Beginning Balance	Acquisition (Note 3)	Acquisition (Note 3)		Disposal (Note 3)	Disposal (Note 3)		Ending	Balance
					Number of Shares	Amount	Number of Shares	Amount	Number of Shares	Amount	Carrying Amount	Gain (Loss) on Disposal (Note 4)	Number of Shares	Amount
Generalplus Technology	Yuanta De-Li Money Market Fund	Financial assets at FVTPL - current	-	-	12,855,130	$ 213,002	20,897,176	$ 348,000	31,183,465	$ 520,000	$ 517,842	$ 2,158	2,568,841	$ 43,068

Note 1: Marketable Securities in this table include shares, bonds, beneficiary certificates and derivative products.

Note 2: Fill in the two columns if marketable securities are accounted for using equity method.

Note 3: The accumulated amount of acquisition/disposal were calculated at costs or prices of at least NT$300 million or 20% of the paid-in capital separately.

Note 4: Paid-in capital is the paid-in capital of the parent company Shares of issuers without par value or not NT$10 per share are calculated according to 10% of total equity attributable to owners of the Company regarding the regulation on transaction amount of 20% of paid-in capital.
78 -

TABLE 4

SUNPLUS TECHNOLOGY COMPANY LIMITED AND SUBSIDIARIES

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS FOR THE YEAR ENDED DECEMBER 31, 2023 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Company Name	Counterparty	Flow of Transactions (Note 5)	Intercompany Transactions	Intercompany Transactions	Intercompany Transactions
			Financial Statement Account Item	Amount	Terms	Percentage of Consolidated Total Gross Sales or Total Assets
Sunplus	Generalplus Technology	1	Sales Notes receivable and trade receivables Other receivables Non-operatingincome	$ 2,995 698 42 529	Note 1 Note 1 Note 3 Note 3	0.05% 0.01% - 0.01%
	Sunext Technology	1	Sales Non-operatingincome	39 1,469	Note 1 Note2	- 0.03%
	Sunplus Innovation Technology	1	Non-operating income Other receivables	4,177 642	Note 2 Note 3	0.08% -
	Jumplux Technology	1	Sales Non-operating income Notes receivable and trade receivables Other receivables	10,713 8,184 1,923 4,504	Note 1 Note 2 Note 1 Note 3	0.19% 0.15% 0.01% 0.03%
	Chongqing CQPlus1	1	Cost of goods sold	18,232	Note 2	0.33%
	SunMedia	1	Other payables Research and development expenses	26,085 103,542	Note 3 Note 2	0.19% 1.87%
	Sunplus Prof-tek (Shenzhen)	1	Other payables Research and development expenses	27,921 110,665	Note 3 Note 2	0.20% 2.00%
Sunplus Innovation Technology	SunMedia	2	Other payables Selling and marketing expenses	1,595 6,394	Note 3 Note 2	0.01% 0.12%
	Worldplus (Shenzhen)	2	Other payables Selling and marketing expenses	7,070 27,047	Note 3 Note 2	0.05% 0.49%
Generalplus Technology	Generalplus H.K.	2	Selling and marketing expenses Other payables	10,849 2,535	Note 2 Note 3	0.20% 0.02%
	Generalplus (Shenzhen)	2	Sales Research and development expenses Notes receivable and trade receivables Other payables	77,989 76,124 5,210 21,195	Note 2 Note 2 Note 1 Note 3	1.41% 1.38% 0.04% 0.15%
	SunplusInnovation Technology	2	Sales	115	Note1	-
Sunplus Shanghai	Chongqing CQ Plus 1	2	Research and development expenses	1,779	Note 2	0.03%
	SunMedia	2	Other receivables Interest revenue Researchand development expenses	326,256 5,428 3,205	Note 3 Note 2 Note2	2.34% 0.10% 0.06%
	Giant Rock	2	Other receivables	3,462	Note 3	0.02%
	Sunplus Prof-tek (Shenzhen)	2	Other receivables	116,829	Note 2	0.84%

(Continued)

79 -

Company Name	Counterparty	Flow of Transactions (Note 5)	Intercompany Transactions	Intercompany Transactions	Intercompany Transactions
			Financial Statement Account Item	Amount	Terms	Percentage of Consolidated Total Gross Sales or Total Assets
Sunplus Prof-tek (Shenzhen)	Worldplus (Shenzhen)	2	Non-operating income	$ 9,660	Note 1	0.17%
Lin Shin Investment	SunMedia	2	Other receivables Interest revenue	61,569 3,967	Note 3 Note 2	0.44% 0.07%
Sunplus Venture Capital	SunMedia	2	Interestrevenue	846	Note2	0.02%
Beijing Sunplus-EHue	SunMedia	2	Sales	7,411	Note 1	0.13%
Sunplus App	Beijing Sunplus - EHue	2	Notes receivable and trade receivables General and administrative expenses Refundable deposits	1,643 343 16	Note 1 Note 2 Note 2	0.01% - -

Note 1: The transactions were based on normal commercial prices and terms.

Note 2: The prices were based on negotiations; the payment period and related terms were not comparable to market terms.

Note 3: The transaction payment terms were similar to normal commercial terms.

Note 4: Lease transaction terms were based on negotiations, and were thus not comparable to market terms. The transactions between the Company and counterparty were made under normal terms.

Note 5: 1 - From parent company to subsidiary.

2 - Between subsidiaries.

(Concluded)

80 -

TABLE 5

SUNPLUS TECHNOLOGY COMPANY LIMITED AND SUBSIDIARIES

NAMES, LOCATIONS, AND RELATED INFORMATION OF INVESTEES ON WHICH THE COMPANY EXERCISES SIGNIFICANT INFLUENCES DECEMBER 31, 2023

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

Investor	Investee	Location	Main Businesses and Products	Investment	Amount	Balance	as of December 3	1, 2023	Net Income (Loss) of the Investee	Investment Gain (Loss)	Note
				December 31, 2023	December 31, 2022	Shares (In Thousands)	Percentage of Ownership (%)	Carrying Amount
Sunplus Lin Shin Investment Sunplus Venture Capital Russell Ventureplus Group Ventureplus Mauritius Generalplus Technology	Ventureplus Group Award Glory Global View Lin Shin Investment Generalplus Technology Sunplus Venture Capital Sunplus Innovation Technology Russell iCatch Technology Sunplus mMedia Sunplus Management Consulting Sunplus Technology (H.K.) Sunplus mMobile Wei-Young Investment Jumplux Technology AkiraNET DeepLux Technology, Inc. WiSilicon Innovation AutoSys Co., Ltd. Generalplus Technology Sunplus Innovation Technology iCatch Technology Sunplus mMedia GlintMed Innovation Jumplux Technology. Sunplus Innovation Technology iCatch Technology Sunplus mMedia eNeural Technologies, Inc. GlintMed Innovation Autosys Co., Ltd. Ventureplus Mauritius Ventureplus Cayman Generalplus Samoa	Belize Belize New Taipei, Taiwan Hsinchu, Taiwan Hsinchu, Taiwan Hsinchu, Taiwan Hsinchu, Taiwan Cayman Islands, British West Indies Hsinchu, Taiwan Hsinchu, Taiwan Hsinchu, Taiwan Kowloon Bay, Hong Kong Hsinchu, Taiwan Hsinchu, Taiwan Hsinchu, Taiwan Taipei, Taiwan America Hsinchu, Taiwan Cayman Islands, British West Indies Hsinchu, Taiwan Hsinchu, Taiwan Hsinchu, Taiwan Hsinchu, Taiwan Hsinchu, Taiwan Hsinchu, Taiwan Hsinchu, Taiwan Hsinchu, Taiwan Hsinchu, Taiwan Hsinchu, Taiwan Hsinchu, Taiwan Cayman Islands, British West Indies Mauritius Cayman Islands, British West Indies Samoa	Investment Investment Consumer electronics, components and rental of buildings Investment Design of ICs Investment Design of ICs Investment Design of ICs Design of ICs Management International trade Design of ICs Investment Design of ICs Information software service Design of ICs Design of ICs Investment Design of ICs Design of ICs Design of ICs Design of ICs Investment management consultant Design of ICs Design of ICs Design of ICs Design of ICs Software development Investment management consultant Investment Investment Investment Investment	$ 2,454,740 ( US$ 74,605 RMB$ 37,900 ) 322,577 ( US$ 7,072 RMB$ 24,366 ) 315,658 699,988 281,001 1,109,982 273,941 - 127,345 407,565 5,000 - - 140,157 132,000 174,000 3,071 (US$ 100 ) 13,500 76,763 (US$ 2,500 ) 86,256 15,701 9,645 19,408 1,250 101,000 60,588 33,439 44,878 37,500 1,250 - 2,454,740 ( US$ 74,605 RMB$ 37,900 ) 2,454,740 ( US$ 74,605 RMB$ 37,900 ) 586,158 ( US$ 19,090 )	$ 2,454,740 ( US$ 74,605 RMB$ 37,900 ) 290,272 ( US$ 7,072 RMB$ 16,900 ) 315,658 699,988 281,001 829,982 273,941 926,830 ( US$ 30,185 ) 127,345 407,565 5,000 43,541 ( HK$ 11,075 ) 2,596,792 70,157 132,000 174,000 - - - 86,256 15,701 9,645 19,408 1,250 101,000 60,588 33,439 44,878 - 1,250 76,763 ( US$ 2,500 ) 2,454,740 ( US$ 74,605 RMB$ 37,900 ) 2,454,740 ( US$ 74,605 RMB$ 37,900 ) 586,158 ( US$ 19,090 )	80,821,284 9,566,874 8,229,457 70,000,000 37,324,304 123,748,800 29,265,751 - 12,734,546 22,440,723 500,000 - - 12,400,000 13,200,000 17,400,000 3,806 3,000,000 5,000,000 14,892,301 1,074,664 964,545 650,185 125,000 10,100,000 2,923,513 3,331,818 1,909,092 15,000,000 125,000 - 8,082,129 80,821,284 19,090,000	100 100 13 100 34 100 50 - 13 90 100 - - 100 55 17 25 38 16 14 2 1 3 13 42 5 4 8 35 12 - 100 100 100	$ 1,728,967 310,129 324,338 874,981 715,498 1,462,835 1,171,070 - 276,717 22,553 3,027 - - 116,175 31,750 84,102 3,217 8,440 64,783 286,644 40,777 22,758 5,317 382 24,291 117,978 78,612 365 35,103 382 - 1,757,803 1,757,781 535,806	$ 53,636 (87,133 ) 64,208 118,601 167,985 68,758 427,789 4,658 64,498 ) (126 ) (166 ) - (15,000 ) 8,016 51,533 (454,737 ) 834 3,171 (38,239 ) 167,985 427,789 (64,498 ) (126 ) (1,677 ) 51,533 427,789 (64,498 ) (126 ) (13,244 ) (1,677 ) (38,239 ) 53,636 53,636 13,719	$ 59,393 (87,133 ) 8,388 116,466 57,620 68,758 215,355 4,658 9,841 ) (114 ) (166 ) - (15,000 ) 8,016 28,343 (88,910 ) 174 (5,060 ) (3,701 ) 22,990 7,908 (653 ) (3 ) (210 ) 21,685 21,513 (2,254 ) (10 ) (4,455 ) (210 ) (2,511 ) 53,636 53,636 13,719	Subsidiary Subsidiary Investee Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary (Note 3) Investee Subsidiary Subsidiary Subsidiary (Note 4) Subsidiary (Note 2) Subsidiary Subsidiary Investee Investee Investee Investee (Note 3) Subsidiary Subsidiary Investee Subsidiary Investee Subsidiary Subsidiary Investee Subsidiary Investee Investee Investee (Note 3) Subsidiary Subsidiary Subsidiary

(Continued)

81 -

Investor	Investee	Location	Main Businesses and Products	Investment	Amount	Balance	as of December	31, 2023	Net Income (Loss) of the Investee	Investment Gain (Loss)	Note
				December 31, 2023	December 31, 2022	Shares (In Thousands)	Percentage of Ownership (%)	Carrying Amount
Generalplus Samoa Generalplus Mauritius Award Glory	Generalplus Mauritius Generalplus H.K. Sunny Fancy Giant Rock Worldplus	Mauritius Hong Kong Seychelles Anguilla America	Investment Marketing Investment Investment Investment	$ 586,158 ( US$ 19,090 ) 11,975 ( US$ 390 ) 322,577 ( US$ 7,072 RMB$ 24,366 ) 188,335 ( US$ 2,700 RMB$ 24,366 ) 110,538 ( US$ 3,600 )	$ 586,158 ( US$ 19,090 ) 11,975 ( US$ 390 ) 290,272 ( US$ 7,072 RMB$ 16,900 ) 156,030 ( US$ 2,700 RMB$ 16,900 ) 110,538 ( US$ 3,600 )	19,090,000 - 9,566,874 5,194,948 100	100 100 100 100 100	$ 543,232 9,922 310,129 216,175 93,760	$ 13,719 (1,598 ) (87,133 ) (73,395 ) (13,708 )	$ 13,719 (1,598 ) (87,133 ) (73,395 ) (13,708 )	Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary

Note 1: The initial exchange rate was based on the exchange rate as of December 31, 2023.

Note 2: The liquidation of Sunplus mMobile on June 15, 2023.

Note 3: The liquidation completion date of Russell Holdings Limited was on July 24, 2023, the investment company, AutoSys Co., Ltd. continues to be held by Sunplus.

Note 4: The liquidation of Sunplus HK on December 1, 2023.

(Concluded)

82 -

TABLE 8

SUNPLUS TECHNOLOGY COMPANY LIMITED AND SUBSIDIARIES

INFORMATION ON INVESTMENTS IN MAINLAND CHINA FOR THE YEAR ENDED DECEMBER 31, 2023

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

Investee Company Name	Main Businesses and Products	Main Businesses and Products	Total Amount of Paid-in Capital	Investment Type	Accumulated Outflow of Investment from Taiwan as of January 1, 2023	I	nvestme	nt Flows	Accumulated Outflow of Investment from Taiwan as of December 31, 2023	% Ownership of Direct or Indirect Investment	Net Income (Loss) of the investee	Investment Loss (Note 2)	Carrying Value as of December 31, 2023	Accumulated Inward Remittance of Earnings as of December 31, 2023
						Outfl	ow	Inflow
Sunplus Shanghai Sunplus Prof-tek (Shenzhen) SunMedia Sunplus App Beijing Sunplus-EHue Worldplus Technology (Shenzhen) Co., Ltd Chongqing CQPlus1	Software development, customer technical services, leasing business and property management Software development, customer technical services, leasing business, property management and corporate management Software development, customer technical services, leasing business and property management Electronic component sales and information management education services Software development, customer technical services, leasing business and property management Software development, building reutal and property management Development of computer software, IC design		$ 528,126 (US$ 17,200) 990,236 (US$ 32,250) 614,100 (US$ 20,000) 168,753 (RMB$ 39,000) 116,829 (RMB$ 27,000) 82,382 (RMB$ 19,039) $ 173,080 (US$ 40,000)	Note 1 Note 1 Note 1 Note 1 Note 1 Note 4 Note 3	$ 542,097 (US$ 17,655) 990,236 (US$ 32,250) 614,100 (US$ 20,000) 168,573 (US$ 586 RMB$ 34,800) 116,829 (RMB$ 27,000) 110,538 (US$ 3,600) -	$	- - - - - - -	$ - - - - - - -	$ 542,097 (US$ 17,655) 990,236 (US$ 32,250) 614,100 (US 20,000) 168,573 (US$ 568 RMB$ 34,800) 116,829 (RMB$ 27,000) 110,538 (US$ 3,600) -	100% 100% 100% 100% 100% 100% 100%	$ 52,202 12,389 (10,675) (944) 1,450 (12,376) (954)	$ 52,202 12,389 (10,675) (923) 1,450 (13,708) (101)	$ 709,127 746,624 194,397 1,442 53,080 93,760 174,707	$ - - - - - - -

Accumulated Inve De (	stment in Mainland China as of cember 31, 2023 Notes 5 and 6)	Investm	ent Amounts Aut	horized by the Inve	stment Commission, MOEA				Limit on Investme	nt
$ 2,724,638 ( US$ 79,872 RMB 62,900 )				$ 2,729,732 ( US$ 80,052 RMB 62,800	)				$ 5,091,131
Sunplus Venture Capital
Accumulated Investment in Mainland China as of December 31, 2023 (Note 6)		Inves	tment Amounts A	uthorized by Invest	ment Commission, MOEA				Limit on Investment
$ 94,786 ( US$ 3,087 )				$ 94,786 ( US$ 3,087	)				$ 877,701
Lin Shin Investment
Accumulated Investment in Mainland China as of December 31, 2023 (Note 7)		Inves	tment Amounts A	uthorized by Invest	ment Commission, MOEA				Limit on Investment
$ 28,586 ( US$ 931 )				$ 28,586 ( US$ 931	)				$ 598,360

(Continued)

83 -

Generalplus Technology (Nature of Relationship: 1)

Investee Company Name	Main Businesses and Products	Main Businesses and Products	Total Amount of Paid-in Capital	Investment Type (e.g., Direct or Indirect)	Accumulated Outflow of Investment from Taiwan as of January 1, 2023	I	nvestme	nt Flows	Accumulated Outflow of Investment from Taiwan as of December 31, 2023	% Ownership of Direct or Indirect Investment	Net Loss of the investee	Investment Loss (Note 2)	Carrying Value as of December 31, 2023	Accumulated Inward Remittance of Earnings as of December 31, 2023
						Outfl	ow	Inflow
Generalplus Shenzhen	Design of ICs, after sales service and marketing research		$ 574,184 (US$ 18,700)	Note 1	$ 574,184 (US$ 18,700)	$	-	$ -	$ 574,184 (US$ 18,700)	100%	$ 15,317	$ 15,317	$ 533,290	$ -

Accumulated Inv D	estment in Mainland China as of ecember 31, 2023	Invest	ment Amount Aut	horized by the Inve	stment Commission, MOEA				Limit on Investm	ent
$ 574,184 ( US$ 18,700 )				$ 574,184 ( US$ 18,700 )					$ 1,268,485

Note 1: Indirect investment in a company located in mainland China through investment in a company located in a third country.

Note 2: Based on the reviewed financial statements of investees in the same period.

Note 3: Sunplus pro-tek (Shenzhen) reinvested in a company located in mainland China.

Note 4: It is a company located in mainland China that acquired the investment of the third regional investment company on September 2, 2019.

Note 5: The investment amount approved by the Investment Review Committee of the Ministry of Economic Affairs includes the investment business of Xiamen Xm-plus Technology Co., Ltd. in mainland China, and is included in the financial assets at FVTPL-non-current.

Note 6: Due to the adjustment of the organizational structure of the Group, the Company obtained the approval of the Investment Review Committee of the Ministry of Economic Affairs to invest in the equity of Xiamen Xm-plus Technology Co., Ltd. On October 18, 2023. The Company remitted RMB 7,466 thousand on November 30, 2023. Part of the equity originally held by Sunplus Shanghai was changed to Giant Rock Inc., the amount of which did not include RMB 7,466 thousand.

Note 7: The investment amount approved by the Investment Review Committee of the Ministry of Economic Affairs includes the investment business of Sanneng-Group Holding Company in mainland China, and CSVI Ventures, L.P, and is included in the financial assets at FVTPL-non-current.

Note 8: The investment amount approved by the Investment Review Committee of the Ministry of Economic Affairs includes the investment business of Arizon RFID Technology (Cayman) Co., Ltd in mainland China, and is included in the financial assets at FVTPL-current.

Note 9: The original foreign currency was derived from the exchange rate on December 31, 2023.

(Concluded)

84 -

TABLE 7

SUNPLUS TECHNOLOGY COMPANY LIMITED AND SUBSIDIARIES

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

FOR THE YEAR ENDED DECEMBER 31, 2023 (In Thousands of New Taiwan Dollars, )

Investee Company	Transaction Type	Research and Development Expense	Research and Development Expense	Price	Transaction Details	Transaction Details	Notes/Trade Receivables (Payables)	Notes/Trade Receivables (Payables)	Unrealized (Gain) Loss	Note
		Amount	%		Payment Terms	Comparison with Market Transactions	Ending Balance	%
Generalplus Shenzhen	Development and processing services Sales	$ 76,124 77,990	16.65 3.70	Based on contract Based on contract	Based on contract Based on contract	Not comparable with market transactions Not comparable with market transactions	$ 21,195 15,210	89.28 4.19	$ - 57	NA NA
Chongqing CQPlus1	Purchases Manufacturing expense	9,294 3,181	4.31 1.34	Based on contract Based on contract	Based on contract Based on contract	Not comparable with market transactions Not comparable with market transactions	- -	- -	5,757 -	NA NA
SunMedia	Development and processing services	103,542	7.76	Based on contract	Based on contract	Not comparable with market transactions	(26,100)	48.31	-	NA
Sunplus Prof-tek (Shenzhen)	Processing services	110,665	8.30	Based on contract	Based on contract	Not comparable with market transactions	(27,922)	51.69	-	NA

85 -

TABLE 8

SUNPLUS TECHNOLOGY COMPANY LIMITED

INFORMATION OF MAJOR SHAREHOLDERS FOR THE YEAR ENDED DECEMBER 31, 2023

Name of Major Shareholder	Shares	Shares
	Number of Shares	Percentage of Ownership (%)
Chou-chye, Huang	92,737,817	15.66

Note 1: The information of major shareholders presented in this table is provided by the Taiwan Depository & Clearing Corporation based on the number of ordinary shares and preference shares held by shareholders with ownership of 5% or greater, that have been issued without physical registration (including treasury shares) by the Company as of the last business day for the current quarter. The share capital in the consolidated financial statements may differ from the actual number of shares that have been issued without physical registration because of different preparation basis.
Note 2: If a shareholder delivers the shareholdings to the trust, the above information will be disclosed by the individual truster who opened the trust account. For shareholders who declare insider shareholdings with ownership greater than 10% in accordance with the Security and Exchange Act, the shareholdings include shares held by shareholders and those delivered to the trust over which shareholders have rights to determine the use of trust property. For information relating to insider shareholding declaration, please refer to Market Observation Post System.
86 -

Balance at January 1 and December 31 Other receivable Investment receivable Interest receivables Tax refund receivable Others	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2023 $ - December	2022 $ - 31
		2023 $ 48,379 13,025 7,900 1,668 $ 70,972	2022 $ 48,507 8,466 44,188 38,266 $ 139,427

Carrying amount Land Buildings Transportation equipment Additions to right-of-use assets Depreciation charge for right-of-use assets Land Buildings Transportation equipment		December 31	December 31
	2023 $ 185,378 2,451 1,861 $ 189,690 For the Year Ended		2022 $ 192,049 6,762 3,300 $ 202,111 December 31
		2023 $ 1,598 $ 6,670 7,425 1,440 $ 15,535	2022 $ 3,926 $ 6,671 7,666 767 $ 15,104

Line Item Related Party Category Other current assets Associate e. Guarantee deposits received (excluding loans to related parties) Line Item Related Party Category Other liabilities Associate		December	31
		2023 $ 1,385 December	2022 $ - 31
		2023 $ 666	2022 $ -

AI assistant

SUNPLUS — Audit Report / Information 2023

52056_rns_2023-11-14_c3b3523f-9d8c-4f2e-8818-e2b93acedaa4.pdf

Sunplus Technology Company Limited and Subsidiaries

DECLARATION OF CONSOLIDATION OF FINANCIAL STATEMENTS OF AFFILIATES

INDEPENDENT AUDITORS’ REPORT

Opinion

Basis for Opinion

Key Audit Matters

Occurrence of Revenue from Specific Customers

Other Matter

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements

Notice to Readers

SUNPLUS TECHNOLOGY COMPANY LIMITED AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2023 AND 2022 (In Thousands of New Taiwan Dollars)

SUNPLUS TECHNOLOGY COMPANY LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

SUNPLUS TECHNOLOGY COMPANY LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

SUNPLUS TECHNOLOGY COMPANY LIMITED AND SUBSIDIARIES

SUNPLUS TECHNOLOGY COMPANY LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022 (In Thousands of New Taiwan Dollars)

SUNPLUS TECHNOLOGY COMPANY LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022 (In Thousands of New Taiwan Dollars)

SUNPLUS TECHNOLOGY COMPANY LIMITED AND SUBSIDIARIES

1. GENERAL INFORMATION

2. APPROVAL OF FINANCIAL STATEMENTS

3. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS

2) Amendments to IAS 21 “Lack of Exchangeability”

4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

b. Basis of preparation

e. Foreign currencies

f. Inventories

g. Investments in associates

k. Intangible assets

m. Financial instruments

1) Financial assets

a) Measurement category

i. Financial assets at FVTPL

2) Equity instruments

3) Financial liabilities

a) Subsequent measurement

n. Provisions

p. Lease

1) The Company as lessor

q. Borrowing costs

2) Retirement benefits

Restricted shares for employees granted to employees

u. Taxation

1) Current tax

2) Deferred tax

3) Current and deferred taxes

5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

Key Sources of Estimation Uncertainty

Estimated impairment of financial assets

6. CASH AND CASH EQUIVALENTS

7. FINANCIAL ASSETS AND LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS

8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

9. TRADE RECEIVABLE AND OTHER RECEIVABLE

Trade receivable

December 31, 2023

10. INVENTORIES

11. SUBSIDIARIES

a. The subsidiaries included in the consolidated financial statements

12. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

13. PROPERTY, PLANT AND EQUIPMENT

14. LEASE ARRANGEMENTS

a. Right-of-use assets

b. Lease liabilities

c. Material lease-in activities and terms

d. Other lease information

15. INVESTMENT PROPERTIES

An analysis of depreciation by function

17. OTHER ASSETS

18. BORROWINGS

19. ACCOUNTS PAYABLE

20. OTHER LIABILITIES

21. RETIREMENT BENEFIT PLANS

a. Defined contribution plans

SUNPLUS Audit Report / Information 2023