SYNCMOLD - Annual Report 2023 | FinancialReports.eu

Syncmold Enterprise Corporation

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

INDEPENDENT AUDITORS’ REPORT

The Board of Directors and Shareholders Syncmold Enterprise Corporation

Opinion

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

In our opinion, based on our audits and the report of other auditors (refer to the other matter paragraph), the accompanying financial statements present fairly, in all material respects, the financial position of the Corporation as of December 31, 2023 and 2022, and its financial performance and its cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

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 Financial Statements section of our report. We are independent of the Corporation 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. Base on our audits and the report of other auditors, 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 financial statements for the year ended December 31, 2023. These matters were addressed in the context of our audit of the 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 of the Corporation’s financial statements for the year ended December 31, 2023 is described as follows:

Occurrence of Sales Revenue

The sales revenue of the Corporation is mainly generated from the sales of monitor hinge products. Most of the sales were highly concentrated on major customers, which revenue accounted for 76.19% of total sales revenue in 2023. Due to the high frequency and significant amounts of transactions with major customers, the occurrence of sales revenue was deemed as a key audit matter for the year ended December 31, 2023. Refer to Note 4 to the financial statements for the related revenue recognition policies.

In response to this key audit matter, our main audit procedures performed in the assessment of the recognition of sales revenue of the Corporation were as follows:

We obtained an understanding of the design and implementation of internal controls and assessed the operating effectiveness of relevant controls.
We performed detailed verification tests on the selected samples of sales revenue, and checked transaction vouchers, and amount received or reconciliation with customers and confirmed the occurrence of sales revenue.

Other Matter

We did not audit the financial statements of associates accounted for using the equity method, these were instead audited by other auditors. Our opinion, insofar as it relates to the amounts included for associates accounted for using the equity method, is based solely on the reports of other auditors. As of December 31, 2023 and 2022, the amounts of investments accounted for using the equity method were NT$175,055 thousand and NT$168,088 thousand, respectively, which accounted for 1.81% and 1.86% of the Corporation’s total assets, respectively. For the years ended December 31, 2023 and 2022, the share of profit of associates accounted for using the equity method amounted to NT$34,327 thousand and NT$28,160 thousand, respectively, which accounted for 6.28% and 5.17% of the Corporation’s total comprehensive income, respectively.

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

Management is responsible for the preparation and fair presentation of the financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Corporation’s 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 the Corporation or to cease operations, or has no realistic alternative but to do so.

Those charged with governance, including supervisors, are responsible for overseeing the Corporation’s financial reporting process.

Auditors’ Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the 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 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 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 the Corporation’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
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 the Corporation’s 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 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 the Corporation to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the 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 the Corporation to express an opinion on the financial statements. We are responsible for the direction, supervision, and performance of the 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 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 Chih-Yuan Chen and Yao-Lin Huang.

Deloitte & Touche Taipei, Taiwan Republic of China

March 8, 2024

Notice to Readers

The accompanying financial statements are intended only to present the 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 financial statements are those generally applied in the Republic of China.

For the convenience of readers, the auditors’ report and the accompanying financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. 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 auditors’ report and financial statements shall prevail.

SYNCMOLD ENTERPRISE CORPORATION

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) Financial assets at amortized cost - current (Notes 4 and 8) Trade receivables, net (Notes 4 and 9) Trade receivables from related parties (Notes 4 and 26) Other receivables from related parties (Notes 4 and 26) Inventories (Notes 4 and 10) Other current assets (Note 4) Total current assets NON-CURRENT ASSETS Financial assets at fair value through profit or loss - non-current (Notes 4 and 7) Investments accounted for using the equity method (Notes 4 and 11) Property, plant and equipment (Notes 4, 12, 26 and 27) Right-of-use assets (Notes 4, 13 and 26) Intangible assets (Notes 4 and 14) Goodwill (Notes 4 and 15) Deferred tax assets (Notes 4 and 22) Prepayments for equipment Refundable deposits Net defined benefit assets (Notes 4 and 19) Total non-current assets TOTAL LIABILITIES AND EQUITY CURRENT LIABILITIES Short-term borrowings (Notes 4 and 16) Trade payables Trade payables from related parties (Note 26) Other payables (Note 18) Other payables from related parties (Note 26) Current tax liabilities (Notes 4 and 22) Lease liabilities - current (Notes 4, 13 and 26) Current portion of long-term borrowing (Notes 4, 16 and 27) Current portion of bonds payable (Notes 4 and 17) Other current liabilities Total current liabilities NON-CURRENT LIABILITIES Bonds payable (Notes 4 and 17) Long-term borrowing (Notes 4, 16 and 27) Deferred tax liabilities (Notes 4 and 22) Lease liabilities - non-current (Notes 4, 13 and 26) Guarantee deposits received Other non-current liabilities (Notes 4 and 11) Total non-current liabilities Total liabilities EQUITY Ordinary shares Capital collected in advance Capital surplus Retained earnings Legal reserve Special reserve Unappropriated earnings Total retained earnings Other equity Exchange differences on translating the financial statements of foreign operations Unrealized gain (loss) of financial assets at fair value through other comprehensive income Total other equity Total equity TOTAL		2023 Amount % $ 1,348,029 14 75,093 1 122,820 1 201,953 2 202,569 2 10,680 - 57,797 1 14,056 - 2,032,997 21 103,644 1 6,972,648 72 206,560 2 1,798 - 6,791 - 324,597 4 3,527 - - - 2,230 - 7,299 - 7,629,094 79 $ 9,662,091 100 $ 860,000 9 3,055 - 1,305,481 14 215,578 2 111,667 1 28,605 1 979 - 4,499 - 200,931 2 4,872 - 2,735,667 29 - - 39,314 - 169,713 2 841 - 32 - 5,152 - 215,052 2 2,950,719 31 1,237,258 13 170,511 2 3,180,597 33 1,064,029 11 518,796 5 1,160,008 12 2,742,833 28 (626,422) (7) 6,595 - (619,827) (7) 6,711,372 69 $ 9,662,091 100		2022
				Amount % $ 1,227,685 14 86,154 1 - - 207,331 2 188,259 2 8,936 - 25,953 - 11,503 - 1,755,821 19 63,490 1 6,624,643 74 216,650 2 3,564 - 13,611 - 324,597 4 2,955 - 6,589 - 1,983 - 6,416 - 7,264,498 81 $ 9,020,319 100 $ 755,000 8 12,175 - 770,644 9 138,912 2 397,602 4 52,611 1 2,996 - 4,476 - - - 14,472 - 2,148,888 24 1,178,724 13 43,771 1 98,603 1 681 - 136 - 3,319 - 1,325,234 15 3,474,122 39 1,237,242 14 - - 2,361,070 26 1,026,386 11 687,191 8 753,104 8 2,466,681 27 (514,593) (6) (4,203) - (518,796) (6) 5,546,197 61 $ 9,020,319 100

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

(With Deloitte & Touche auditors’ report dated March 8, 2024)

SYNCMOLD ENTERPRISE CORPORATION

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

OPERATING REVENUE (Notes 4 and 26) Sales revenue Other operating revenue Total operating revenue OPERATING COSTS (Notes 4, 10, 21 and 26) GROSS PROFIT OPERATING EXPENSES (Notes 21 and 26) Selling and marketing expenses General and administrative expenses Research and development expenses Expected credit loss (reversed) (Notes 4 and 9) Total operating expenses PROFIT FROM OPERATIONS NON-OPERATING INCOME AND EXPENSES Other income (Notes 21 and 26) Other gains and losses Interest income (Note 26) Net foreign exchange gain (Notes 4 and 28) Net (loss) gain on financial assets at fair value through profit (Notes 4 and 7) Share of profit of subsidiaries and associates (Notes 4 and 11) Interest expenses (Note 26) Impairment loss on investments accounted for using the equity method (Notes 4 and 11) Total non-operating income and expenses PROFIT BEFORE INCOME TAX INCOME TAX EXPENSE (Notes 4 and 22) NET PROFIT FOR THE YEAR		2023 Amount % $ 3,298,415 93 233,563 7 3,531,978 100 3,009,131 85 522,847 15 79,049 2 228,051 7 146,999 4 86 - 454,185 13 68,662 2 29,715 1 17 - 45,316 1 29,839 1 54,726 1 556,532 16 (24,996) (1) - - 691,149 19 759,811 21 117,446 3 642,365 18		2022
				Amount % $ 3,860,081 94 254,777 6 4,114,858 100 3,524,611 86 590,247 14 75,902 2 198,096 5 146,338 3 (87) - 420,249 10 169,998 4 32,001 1 8 - 13,321 - 53,957 1 (7,381) - 215,258 5 (18,124) - (19,835) - 269,205 7 439,203 11 67,926 2 371,277 9 (Continued)

SYNCMOLD ENTERPRISE CORPORATION

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

OTHER COMPREHENSIVE INCOME (LOSS) Items that will not be reclassified subsequently to profit or loss: Remeasurement of defined benefit plans Share of other comprehensive (loss) income of subsidiaries accounted for using the equity method Income tax relating to items that will not be reclassified subsequently to profit or loss Items that may be reclassified subsequently to profit or loss: Exchange differences on translating the financial statements of foreign operations Other comprehensive income (loss) for the year TOTAL COMPREHENSIVE INCOME FOR THE YEAR EARNINGS PER SHARE (Note 23) Basic Diluted		2023 Amount % $ 802 - 15,115 - (160) - (111,829) (3) (96,072) (3) $ 546,293 15 $ 5.12 $ 5.03		2022
				Amount % $ 3,503 - (13,226) - (700) - 183,968 4 173,545 4 $ 544,822 13 $ 3.00 $ 2.67

		$		$

The accompanying notes are an integral part of the financial statements. (With Deloitte & Touche auditors’ report dated March 8, 2024)

(Concluded)

SYNCMOLD ENTERPRISE CORPORATION

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

BALANCE AT JANUARY 1, 2022 Appropriation of 2021 earnings Legal reserve Special reserve Cash dividends distributed by the Corporation Cash dividends distributed by capital surplus Unclaimed dividends Net profit for the year ended December 31, 2022 Other comprehensive income (loss) for the year ended December 31, 2022, net of income tax Total comprehensive income (loss) for the year ended December 31, 2022 Disposal of investment in equity instrument designated as at fair value through other comprehensive income by associates BALANCE AT DECEMBER 31, 2022 Appropriation of 2022 earnings Legal reserve Special reserve Cash dividends distributed by the Corporation Unclaimed dividends Net profit for the year ended December 31, 2023 Other comprehensive income (loss) for the year ended December 31, 2023, net of income tax Total comprehensive income (loss) for the year ended December 31, 2023 Convertible corporate bonds Actual acquisition of interests in subsidiaries Disposal of investment in equity instrument designated as at fair value through other comprehensive income by associates BALANCE AT DECEMBER 31, 2023	Capital Ordinary Shares Capital Collected in Capital Surplus (Note 20) Advance (Note 17) (Notes 4 and 20) $ 1,237,242 $ - $ 2,769,331 - - - - - - - - - - - - - - (408,290 ) - - 29 - - - - - - - - - - - - 1,237,242 - 2,361,070 - - - - - - - - - - - - - - 15 - - - - - - - - - 16 170,511 818,791 - - 721 - - - $ 1,237,258 $ 170,511 $ 3,180,597	Retained Earnings (Note 20)	Total $ 2,337,701 - - (247,448) (247,448) - - 371,277 4,739 376,016 412 2,466,681 - - (371,172) (371,172) - 642,365 (310) 642,055 - - 5,269 $ 2,742,833	Other Equity	Total $ (687,190) - - - - - - - 168,806 168,806 (412) (518,796) - - - - - - (95,762) (95,762) - - (5,269) $ (619,827)	Total Equity $ 5,657,084 - - (247,448) (247,448) (408,290 ) 29 371,277 173,545 544,822 - 5,546,197 - - (371,172) (371,172) 15 642,365 (96,072) 546,293 989,318 721 - $ 6,711,372
				Unrealized Gain Exchange (Loss) on Financial Differences on Assets at Fair Translating of the Value Through Financial Other Statements of Comprehensive Foreign Operations Income $ (698,561) $ 11,371 - - - - - - - - - - - - - - 183,968 (15,162) 183,968 (15,162) - (412) (514,593) (4,203) - - - - - - - - - - - - (111,829) 16,067 (111,829) 16,067 - - - - - (5,269) $ (626,422) $ 6,595
		Unappropriated Legal Reserve Special Reserve Earnings $ 1,001,175 $ 635,615 $ 700,911 25,211 - (25,211 ) - 51,576 (51,576 ) - - (247,448) 25,211 51,576 (324,235) - - - - - - - - 371,277 - - 4,739 - - 376,016 - - 412 1,026,386 687,191 753,104 37,643 - (37,643 ) - (168,395 ) 168,395 - - (371,172) 37,643 (168,395) (240,420) - - - - - 642,365 - - (310) - - 642,055 - - - - - - - - 5,269 $ 1,064,029 $ 518,796 $ 1,160,008

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

(With Deloitte & Touche auditors’ report dated March 8, 2024)

SYNCMOLD ENTERPRISE CORPORATION

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

CASH FLOWS FROM OPERATING ACTIVITIES Profit before income tax Adjustments for: Depreciation expenses Amortization expenses Expected credit loss (reversed) Net (gain) loss on financial assets at fair value through profit or loss Interest expenses Interest income Dividend income Share of profit of subsidiaries and associates Gain on disposal of property, plant and equipment Impairment loss on investments accounted for using the equity method (Reversal) write-downs of inventories Net (gain) loss on unrealized foreign currency exchange Changes in operating assets and liabilities Notes receivable Trade receivables Trade receivables from related parties Other receivables from related parties Inventories Other current assets Net defined benefit assets Notes payable and trade payables Trade payables from related parties Other payables Other current liabilities Cash generated from operations Interest paid Income tax paid Net cash generated from operating activities CASH FLOWS FROM INVESTING ACTIVITIES Purchase of financial assets at amortized cost Purchase of financial assets at fair value through profit or loss Proceeds from sale of financial assets at fair value through profit or loss Payment for property, plant and equipment Proceeds from disposal of property, plant and equipment Decrease (increase) in refundable deposits Purchase of intangible assets Increase in prepayments for equipment	2023 $ 759,811 28,182 9,781 86 (54,726) 24,996 (45,316) (5,089) (556,532) (17) - 5,143 (51,786) - 13,036 (14,310) (1,766) (36,987) 124 (81) 1,099,956 (534,837) 79,518 (9,600) 709,586 (13,474) (71,074) 625,038 (129,540) (30,000) 55,633 (8,588) 120 (247) (2,961) -	2022 $ 439,203 35,572 13,329 (87) 7,381 18,124 (13,321) (11,703) (215,258) (8) 19,835 (2,305) 13,034 268 868,239 41,831 7,033 (6,155) 1,449 (15) (6,390) (528,716) 27,973 10,310 719,623 (5,237) (159,215) 555,171 - (157,149) 146,896 (7,144) 130 26 (13,152) (6,589) (Continued)

SYNCMOLD ENTERPRISE CORPORATION

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

Interest received Dividends received Net cash generated from investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from short-term borrowings Repayments of long-term borrowings Decrease in guarantee deposits received (Decrease) increase in financing payables to related parties Repayment of the principal portion of lease liabilities Dividends paid Acquisition of additional interests in subsidiaries Net cash (used in) generated from financing activities NET INCREASE 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 $ 42,663 120,749 47,829 105,000 (4,435) (104) (277,410) (3,109) (371,172) (1,293) (552,523) 120,344 1,227,685 $ 1,348,029	2022 $ 9,425 179,169 151,612 555,000 (4,483) - 121,875 (11,934) (655,738) - 4,720 711,503 516,182 $ 1,227,685

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

(With Deloitte & Touche auditors’ report dated March 8, 2024)

(Concluded)

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

SYNCMOLD ENTERPRISE CORPORATION

1. GENERAL INFORMATION

Syncmold Enterprise Corporation (the “Corporation”) was incorporated in the Republic of China (ROC) in July 1979 and is mainly engaged in the processing, manufacturing, trading, technology licensing and related import and export business of various metal molds, plastic molds and electronic parts.

The Corporation’s shares were approved for listing on the emerging stock board of the Taipei Exchange (TPEx) in December 2005 and after obtaining approval from the Financial Supervisory Commission, Executive Yuan in November 2006, the Corporation’s shares were listed on the over-the-counter market (OTC) on January 11, 2007. In November 2009, the Corporation obtained approval to transfer listing of its shares to the Taiwan Stock Exchange (TWSE) and they were officially listed and started trading its shares on December 17, 2009.

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

2. APPROVAL OF FINANCIAL STATEMENTS

The financial statements were approved by the Corporation’s board of directors on March 8, 2024.

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 Group’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 “Lease 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 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 will be 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.
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As of the date the financial statements were authorized for issue, the Corporation has assessed that the application of other standards and interpretations will have on the Corporation’s financial position and financial performance and will disclose the relevant impact when the assessment is completed.

Effective Date New IFRS, Amended and Revised Standards and Interpretations Announced by IASB (Note 1)

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

Note 1: Unless stated otherwise, the above New IFRS Accounting Standards 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.

As of the date the financial statements were authorized for issue, the Corporation is continuously assessing the possible impact of the application of other standards and interpretations will have on the Corporation’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 parent company only financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers (the “Regulations”).

b. Basis of preparation

The parent company only financial statements have been prepared on the historical cost basis except for measured at fair value and net defined benefit assets 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, 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 an asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and
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3) Level 3 inputs are unobservable inputs for the asset or liability.

When preparing these parent company only financial statements, the Corporation used the equity method to account for its investments in subsidiaries and associates. In order for the amounts of the net profit for the year, other comprehensive income for the year and total equity in the parent company only financial statements to be the same as the amounts attributable to the owners of the Corporation in its consolidated financial statements, adjustments arising from the differences in accounting treatments between the parent company only basis and the consolidated basis were made to investments accounted for using the equity method, the share of profit or loss of subsidiaries and associates and the share of other comprehensive income of subsidiaries and associates.

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 Corporation 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. Business combinations

Acquisitions of businesses are accounted for using the acquisition method. Acquisition-related costs are generally recognized in profit or loss as they are incurred.

Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree, and the fair value of the acquirer’s previously held equity interests in the acquiree over the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed. If, after re-assessment, the net of the acquisition date amounts of the identifiable assets acquired and liabilities assumed exceeds the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree, and the fair value of the acquirer’s previously held interests in the acquiree, the excess is recognized immediately in profit or loss as a bargain purchase gain.

e. Foreign currencies

In preparing the Corporation’s financial statements, transactions in currencies other than the Corporation’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 in which they arise.

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Non-monetary items denominated in foreign currencies that are measured at fair value are retranslated at the rates prevailing at the date when the fair value is determined. Exchange differences arising from the retranslation of non-monetary items are included in profit or loss for the period except for exchange differences arising from the retranslation of non-monetary items in respect of which gains and losses are recognized directly in other comprehensive income; in which cases, 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 the financial statements, the functional currencies of the Corporation (including subsidiaries in other countries that use currencies which are different from the currency of the Corporation) 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.

f. Inventories

Inventories consist of raw materials, supplies, finished goods and products 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. Inventories are recorded at the weighted-average cost on the balance sheet date.

g. Investments in subsidiaries

The Corporation uses the equity method to account for its investments in subsidiaries.

A subsidiary is an entity that is controlled by the Corporation.

Under the equity method, an investment in a subsidiary is initially recognized at cost and adjusted thereafter to recognize the Corporation’s share of the profit or loss and other comprehensive income of the subsidiary. The Corporation also recognizes the changes in the Corporation’s share of equity of subsidiaries.

Changes in the Corporation’s ownership interest in a subsidiary that do not result in the Corporation losing control of the subsidiary are accounted for as equity transactions. The Corporation recognizes directly in equity any difference between the carrying amount of the investment and the fair value of the consideration paid or received.

When the Corporation’s share of loss of a subsidiary exceeds its interest in that subsidiary (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 Corporation’s net investment in the subsidiary), the Corporation continues recognizing its share of further loss, if any.

Any excess of the cost of acquisition over the Corporation’s share of the net fair value of the identifiable assets and liabilities of a subsidiary that constitutes a business 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 Corporation’s share of the net fair value of the identifiable assets and liabilities of a subsidiary that constitutes a business over the cost of acquisition is recognized immediately in profit or loss.

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The Corporation assesses its investment for any impairment by comparing the carrying amount with the estimated recoverable amount as assessed based on the investee’s financial statements as a whole. An impairment loss recognized on goodwill cannot be reversed in a subsequent period.

Profit or loss resulting from downstream transactions are eliminated in full only in the parent company only financial statements. Profits and losses resulting from upstream transactions and transactions between subsidiaries are recognized only in the parent company only financial statements only to the extent of interests in the subsidiaries that are not related to the Corporation.

h. Investments in associates

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

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

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

When the Corporation 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 Corporation’s proportionate interest in the associate. The Corporation 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 accounted for using the equity method. If the Corporation’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.

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.

Profits and losses resulting from upstream transactions and downstream transactions are recognized only in the parent company only financial statements only to the extent of interests in the associates that are not related to the Corporation.

i. Property, plant and equipment

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

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 the estimates accounted for on a prospective basis.

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.

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j. Goodwill

Goodwill arising from the acquisition of a business is measured 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 Corporation’s cash-generating units or groups of cash-generating units (referred to as “cash-generating units”) that is 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.

If goodwill has been allocated to a cash-generating unit and the entity disposes of an operation within that unit, the goodwill associated with the operation which is disposed of is included in the carrying amount of the operation when determining the gain or loss on disposal and is measured on the basis of the relative values of the operation disposed of and the portion of the cash-generating unit retained.

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. Intangible assets with indefinite useful lives that are acquired separately are measured at cost less accumulated impairment loss.

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.

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

At the end of each reporting period, the Corporation 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 Corporation estimates the recoverable amount of the cash-generating unit to which the asset belongs. Corporate assets are allocated to the smallest group of cash-generating units on a reasonable and consistent basis of allocation.

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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 Corporation 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 categories

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

i. Financial assets at FVTPL

Financial assets are classified as at FVTPL when such financial assets are mandatorily classified or 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.

Financial assets at FVTPL are subsequently measured at fair value, with any gains or losses arising on remeasurement recognized in profit or loss. The net gain or loss recognized in profit or loss incorporates any dividends or interest earned on such a financial asset. Fair value is determined in the manner described in Note 25.

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.
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Financial assets at amortized cost (including cash and cash equivalents, notes receivable, trade receivables, other receivables, other receivables from related parties 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 such a financial asset, except for:

i) Purchased or originated credit-impaired financial asset, for which interest income is calculated by applying the credit-adjusted effective interest rate to the amortized cost of such financial assets; and
ii) Financial assets that are not credit impaired on purchase or origination but have subsequently become credit impaired, for which interest income is calculated by applying the effective interest rate to the amortized cost of such financial assets in subsequent reporting periods.

A financial asset is credit impaired when one or more of the following events have occurred:

i) Significant financial difficulty of the issuer or the borrower;
ii) Breach of contract, such as a default;
iii) It is becoming probable that the borrower will enter bankruptcy or undergo a financial reorganization; or
iv) The disappearance of an active market for that financial asset because of financial difficulties.

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.

b) Impairment of financial assets

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

The Corporation always recognizes lifetime expected credit losses (ECLs) for trade receivables. For all other financial instruments, the Corporation recognizes lifetime ECLs when there has been a significant increase in credit risk since initial recognition. If, on the other hand, the credit risk on a financial instrument has not increased significantly since initial recognition, the Corporation 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 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.

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The Corporation recognizes an impairment gain or loss in profit or loss for all financial instruments with a corresponding adjustment to their carrying amount through a loss allowance account.

c) Derecognition of financial assets

The Corporation 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 is recognized in profit or loss.

2) Equity instruments

Equity instruments issued by the Corporation are classified as equity in accordance with the substance of the contractual arrangements and the definitions of an equity instrument.

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

The repurchase of the Corporation’s own equity instruments is recognized in and deducted directly from equity. No gain or loss is recognized in profit or loss on the purchase, sale, issuance or cancellation of the Corporation’s own equity instruments.

3) Convertible bonds

The component parts of compound instruments (i.e., convertible bonds) issued by the Corporation are classified separately as financial liabilities and equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

On initial recognition, the fair value of the liability component is estimated using the prevailing market interest rate for similar non-convertible instruments. This amount is recorded as a liability on an amortized cost basis using the effective interest method until extinguished upon conversion or upon the instrument’s maturity date. Any embedded derivative liability is measured at fair value.

The conversion option classified as equity is determined by deducting the amount of the liability component from the fair value of the compound instrument as a whole. This is recognized and included in equity, net of income tax effects, and is not subsequently remeasured. In addition, the conversion option classified as equity will remain in equity until the conversion option is exercised; in which case, the balance recognized in equity will be transferred to capital surplus - share premiums. When the conversion option remains unexercised at maturity, the balance recognized in equity will be transferred to capital surplus - share premiums.

Transaction costs that relate to the issuance of the convertible notes are allocated to the liability and equity components in proportion to the allocation of the gross proceeds. Transaction costs relating to the equity component are recognized directly in equity. Transaction costs relating to the liability component are included in the carrying amount of the liability component.

n. Revenue recognition

The Corporation identifies contracts with customers, allocates the transaction price to the performance obligations and recognizes revenue when performance obligations are satisfied.

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1) Revenue from the sale of goods

Revenue from the sale of goods comes from sales of electronic components and molding products. Sales of electronic components and molding products are recognized as revenue when the goods are delivered via the modes of transportation as stated in the agreements with customers, e.g. FOB shipping or FOB destination modes because it is the time when the customer has full discretion over the manner of distribution and 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. Goods are sold at fixed prices as stated in the agreements with customers.

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

2) Revenue from the rendering of services

Service income is recognized when services are provided.

3) Licensing revenue

Royalty revenue is recognized when the technique remains functional without updates and technical supports. When the customer uses the intellectual property for mass production, the price is decided based on production, sales or other methods, and revenue is recognized according to royalty arrangements.

o. Leasing

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

1) The Corporation as lessor

Leases are classified as finance leases whenever the terms of a lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

Lease payments from operating leases are recognized as income on a straight-line basis over the terms of the relevant leases.

2) The Corporation as lessee

The Corporation 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 by 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 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 balance sheets.

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.

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Lease liabilities are initially measured at the present value of the lease payments, which comprise fixed payments that 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 Corporation uses the lessee’s incremental borrowing rate.

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, the Corporation 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. For a lease modification that is not accounted for as a separate lease, the Corporation accounts for the remeasurement of the lease liability by (a) decreasing the carrying amount of the right-of-use asset of lease modifications that decreased the scope of the lease, and recognizing in profit or loss any gain or loss on the partial or full termination of the lease. Lease liabilities are presented on a separate line in the balance sheets.

p. Borrowing costs

Borrowing costs directly attributable to an acquisition, construction or production of qualifying assets are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.

Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization.

Other than those stated above, all other borrowing costs are recognized in profit or loss in the period in which they are incurred.

q. Government grants

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

Government grants related to income are recognized as 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.

r. 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.

2) Retirement benefits

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

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Defined benefit costs (including service cost, net interest and remeasurement) under defined benefit retirement benefit plans are determined using the projected unit credit method. Service cost (including current 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. Remeasurement, comprising actuarial gains and losses and the return on plan assets (excluding interest), 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 Corporation’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.

s. 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 in the ROC, an additional tax on unappropriated earnings is provided for in the year the shareholders approve to retain earnings.

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

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 difference 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, except where the Corporation 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 assets to be recovered. A previously unrecognized deferred tax asset is also reviewed at the end of each reporting period and recognized to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.

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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 Corporation 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 for the year

Current and deferred taxes 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 taxes are also recognized in other comprehensive income or directly in equity, respectively.

5. MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Corporation’s accounting policies, management is required to make judgments, estimations, and assumptions on 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.

The Corporation considers the possible impact on the cash flow projection, growth rates, discount rates, profitabilities and other relevant material estimates. The estimates and underlying assumptions are reviewed on an ongoing basis.

6. CASH AND CASH EQUIVALENTS

Cash on hand Checking accounts and demand deposits Cash equivalents (with original maturities within 3 months) Time deposits		December 31	December 31
		2023 $ 1,137 579,267 767,625 $ 1,348,029	2022 $ 924 459,011 767,750 $ 1,227,685

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

Bank deposits	December 31
	2023 2022 0.000%-5.74% 0.000%-5.28%

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7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

Financial assets at fair value through profit or loss (FVTPL)-current Financial assets mandatorily classified as at FVTPL Non-derivative financial assets Domestic listed shares Financial assets at FVTPL-non-current Financial assets mandatorily classified as at FVTPL Non-derivative financial assets Domestic emerging market shares Domestic unlisted shares Overseas unlisted shares Private funds		December 31	December 31
		2023 $ 75,093 $ 42,667 20,883 24,189 15,905 $ 103,644	2022 $ 86,154 $ 20,482 - 28,725 14,283 $ 63,490

8. FINANCIAL ASSETS AT AMORTIZED COST

Current Time deposits with original maturities of more than 3 months		December 31	December 31
		2023 $ 122,820	2022 $ -

The ranges of interest rates for time deposits with original maturities of more than 3 months were approximately 5.70%-5.73% per annum as of December 31, 2023.

9. TRADE RECEIVABLES, NET

At amortized cost Gross carrying amount Less: Allowance for impairment loss		December 31	December 31
		2023 $ 202,045 (92) $ 201,953	2022 $ 207,337 (6) $ 207,331

The average credit period of sales of goods is 90-120 days. No interest is charged on trade receivables. Credit rating information is obtained from independent rating agencies where available or, if not available, the Corporation uses other publicly available financial information or its own trading records to rate its major customers. The Corporation’s exposure and the credit ratings of its counterparties are continuously monitored and the aggregate value of transactions concluded is spread amongst approved counterparties. Credit exposure is controlled by counterparty limits that are reviewed and approved by the management annually.

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The Corporation applies the simplified approach to providing for expected credit losses prescribed, which permits the use of lifetime expected loss provision for all trade receivables. The expected credit losses on trade receivables are estimated using a provision matrix by reference to past default experience of the debtor and an analysis of the debtor’s current financial position, adjusted for general economic conditions of the industry in which the debtors operate and an assessment of both the current as well as the forecast direction of economic conditions at the reporting date. As the Corporation’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 Corporation’s different customer base.

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

The following table details the loss allowance of trade receivables based on the Corporation’s provision matrix.

December 31, 2023

Not Past Due Less than 30 Days 31 to 90 Days Expected credit loss rate - - - Gross carrying amount $ 195,259 $ 6,690 $ 4 Loss allowance (Lifetime ECLs) - - - Amortized cost $ 195,259 $ 6,690 $ 4 December 31, 2022 Not Past Due Less than 30 Days 31 to 90 Days Expected credit loss rate - 0.02% 0.1% Gross carrying amount $ 199,672 $ 3,692 $ 3,881 Loss allowance (Lifetime ECLs) - (1) (4) Amortized cost $ 199,672 $ 3,691 $ 3,877	91 to 180 Days - $ - - $ - 91 to 180 Days 1.84% $ 92 (1) $ 91	Over 180 Days 100% $ 92 (92) $ - Over 180 Days - $ - - $ -	Total $ 202,045 (92) $ 201,953 Total $ 207,337 (6) $ 207,331

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

Balance at January 1 Add: Net remeasurement of loss allowance Less: Reversal of loss allowance Balance at December 31	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2023 $ 6 86 - $ 92	2022 $ 93 - (87) $ 6

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10. INVENTORIES

Products Raw materials Work in process Finished goods		December	31
		2023 $ 52,290 1,120 - 4,387 $ 57,797	2022 $ 20,017 2,999 455 2,482 $ 25,953

The cost of inventories recognized as cost of goods sold for the years ended December 31, 2023 and 2022 was $3,009,037 thousand and $3,524,376 thousand, respectively. The cost of goods sold included inventory write-downs of $5,143 thousand and reversals of inventory of $2,305 thousand for the years ended December 31, 2023 and 2022, respectively. The reversals of inventory write-downs resulted from selling of slow-moving inventories.

11. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

Investments in subsidiaries Investments in associates a. Investments in subsidiaries Grand Advance Inc. Syncmold Enterprise (Samoa) Corp. Syncmold Enterprise (USA) Corp. Leohab Enterprise Co., Ltd. Gatetech Technology Inc. Syncmold Enterprise Vietnam Co., Ltd. Syncmold Enterprise (Malaysia) Sdn., Bhd Syncmold Enterprise (Singapore) Pte., Ltd. Syncmold Enterprise (Thailand) Co., Ltd. Add: Credit balance of investments reclassified to non-current liabilities		December 31	December 31
		2023 2022 $ 6,797,593 $ 6,456,555 175,055 168,088 $ 6,972,648 $ 6,624,643 December 31
		2023 $ 3,224,952 2,123,346 (5,152) 215,524 661,321 551,497 2,320 5,890 12,743 6,792,441 5,152 $ 6,797,593	2022 $ 2,875,187 2,172,304 (3,319) 217,034 682,832 488,823 2,167 5,581 12,627 6,453,236 3,319 $ 6,456,555

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Name of Subsidiaries Grand Advance Inc. Syncmold Enterprise (Samoa) Corp. Syncmold Enterprise (USA) Corp. Leohab Enterprise Co., Ltd. Gatetech Technology Inc. Syncmold Enterprise Vietnam Co., Ltd. Syncmold Enterprise (Malaysia) Sdn., Bhd Syncmold Enterprise (Singapore) Pte., Ltd. Syncmold Enterprise (Thailand) Co., Ltd.	Proportion of Ownership and Voting Rights
	December 31
	2023 2022 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 70.00% 70.00% 74.05% 73.82% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

The Corporation continued to support Syncmold Enterprise (USA) Corp. and recognized investment loss based on the proportion of the Corporation’s ownership. The credit balances of long-term equity investment transferred to other liabilities were $5,152 thousand and $3,319 thousand on December 31, 2023 and 2022, respectively.

On March 27, 2023, the Corporation acquired additional 0.23% ownerships in Gatetech Technology Inc. for a cash consideration of $1,293 thousand, which increased the Corporation’s percentage of ownership to 74.05%. Refer to Note 25 for detailed information on the acquisition of non-controlling interests.

For details of the investments in subsidiaries indirectly held by the Corporation, refer to Note 29.

The share of profit or loss of subsidiaries accounted for using the equity method in 2023 and 2022 was calculated based on the subsidiaries’ financial statements which have been audited for the same periods.

b. Investments in associates

Associates that are not individually material Unlisted companies High Grade Tech Co., Ltd. Corebio Technologies Co., Ltd. (Note) Smart Automation Technology Inc.		December 31	December 31
		2023 $ 163,862 - 11,193 $ 175,055	2022 $ 153,143 - 14,945 $ 168,088

Aggregate information of associates that are not individually material:

The Corporation’s share of: Net profit of the year Other comprehensive (loss) income	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2023 $ 18,301 $ 16,026	2022 $ 42,401 $ (15,136)

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Note: Considering that the Corporation’s interest in Corebio Technologies Co., Ltd. on December 31, 2022 was lower than the market value, the management conducted an impairment test on the investment on December 31, 2022, and evaluated whether the carrying amount was less than the recoverable amount. After evaluation, the carrying amount of the investment in Corebio Technologies Co., Ltd. was higher than the recoverable amount, and an impairment loss of $19,835 thousand was recognized in 2022. The shareholders of Corebio Technologies Co., Ltd. held their regular meeting, which was approved to end and dissolve its business on March 29, 2023. The liquidation of Corebio Technologies Co., Ltd. is still in process.

Except for Corebio Technologies Co., Ltd., other investments of associates that are not individually material were accounted for using the equity method, and the Corporation’s share of profit or loss and other comprehensive income from those investments were calculated based on audited financial statements. After conducting an impairment test, considering that the Corporation's interest in Corebio Technologies Co., Ltd. was lower than the market value, the carrying amount of the investment in Corebio Technologies Co., Ltd. was evaluated as higher than the recoverable amount, with impairment loss recognized for the years ended December 31, 2023 and 2022. However, the carrying amount of this investment was written down to zero as of December 31, 2023 and 2022. Consequently, the Corporation’s management believes there will be no material impact on the equity method of accounting or the calculation of the share of profit or loss and other comprehensive income from the unaudited financial statements of this investment.

12. PROPERTY, PLANT AND EQUIPMENT

Cost Balance at January 1, 2023 Additions Transferred from prepayments for land, buildings and equipment Disposals Balance at December 31, 2023 Accumulated depreciation and impairment Balance at January 1, 2023 Depreciation expenses Disposals Balance at December 31, 2023 Carrying amounts at December 31, 2023	Freehold Land $ 122,032 - - - $ 122,032 $ - - - $ - $ 122,032	Buildings $ 96,818 704 - (14,603) $ 82,919 $ 36,968 9,154 (14,603) $ 31,519 $ 51,400	Equipment $ 48,121 7,360 6,589 (2,316) $ 59,754 $ 21,492 12,858 (2,216) $ 32,134 $ 27,620	Transpor- tation Equipment $ 550 - - - $ 550 $ 230 92 - $ 322 $ 228	Office Equipment Total $ 14,381 $ 281,902 524 8,588 - 6,589 (2,929) (19,848) $ 11,976 $ 277,231 $ 6,562 $ 65,252 3,060 25,164 (2,926) (19,745) $ 6,696 $ 70,671 $ 5,280 $ 206,560 (Continued)

28 -

Cost Balance at January 1, 2022 Additions Transferred from prepayments for equipment Disposals Balance at December 31, 2022 Accumulated depreciation and impairment Balance at January 1, 2022 Depreciation expenses Disposals Balance at December 31, 2022 Carrying amounts at December 31, 2022	Freehold Land $ 122,032 - - - $ 122,032 $ - - - $ - $ 122,032	Buildings $ 95,300 2,327 - (809) $ 96,818 $ 27,421 10,356 (809) $ 36,968 $ 59,850	Equipment $ 46,271 3,092 1,250 (2,492) $ 48,121 $ 13,832 10,030 (2,370) $ 21,492 $ 26,629	Transpor- tation Equipment $ 1,425 - - (875) $ 550 $ 1,013 92 (875) $ 230 $ 320	Office Equipment Total $ 13,178 $ 278,206 1,725 7,144 - 1,250 (522) (4,698) $ 14,381 $ 281,902 $ 3,996 $ 46,262 3,088 23,566 (522) (4,576) $ 6,562 $ 65,252 $ 7,819 $ 216,650 (Concluded)

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

Buildings Main buildings 20-50 years Electromechanical power devices 4-5 years Equipment 3-10 years Transportation equipment 5-10 years Office equipment 3-8 years

See Note 27 for detailed information on property, plant and equipment pledged as collateral.

13. LEASE ARRANGEMENTS

a. Right-of-use assets

Carrying amounts Buildings Transportation equipment Additions to right-of-use assets		December	31
		2023 $ 414 1,384 $ 1,798 $ 1,252	2022 $ 2,892 672 $ 3,564 $ 5,371 (Continued)

29 -

Depreciation charge for right-of-use assets Buildings Transportation equipment		December	31
		2023 $ 2,483 535 $ 3,018	2022 $ 11,488 518 $ 12,006 (Concluded)

Except for the additions, recognized depreciation, and subleasing the Group did not have any significant impairment of right-of-use assets for the years ended December 31, 2023 and 2022.

b. Lease liabilities

	December	31
	2023 $ 979 $ 841 December	2022 $ 2,996 $ 681 31
2023 2022 0.94% 0.94% 0.94%-1.71% 0.94% For the Year Ended December 31
	2023 $ 10,713 $ (13,849)	2022 $ 663 $ (12,676)

The Corporation’s leases of certain building qualify as short-term leases. The Corporation has elected to apply the recognition exemption and thus, did not recognize right-of-use assets and lease liabilities for these leases.

30 -

14. INTANGIBLE ASSETS

Computer Software Cost

Cost
Balance at January 1, 2023

Additions
Written off

Balance at December 31, 2023

Accumulated amortization and impairment
Balance at January 1, 2023

Amortization expenses
Written off

Balance at December 31, 2023

Carrying amount at December 31, 2023

Cost
Balance at January 1, 2022

Additions
Written off

Balance at December 31, 2022

Accumulated amortization and impairment
Balance at January 1, 2022

Amortization expenses
Written off

Balance at December 31, 2022

Carrying amount at December 31, 2022

$ 30,225
2,961

(9,334)
$ 23,852
$ 16,614
9,781

(9,334)
$ 17,061
$ 6,791
$ 27,752
13,152
(10,679)
$ 30,225
$ 13,964
13,329
(10,679)
$ 16,614
$ 13,611

Computer software costs are amortized on a straight-line basis over one to five years.

15. GOODWILL

Cost Balance at January 1 Balance at December 31		December 31	December 31
		2023 $ 366,777 $ 366,777	2022 $ 366,777 $ 366,777 (Continued)

31 -

Accumulated impairment losses Balance at January 1 Balance at December 31 Carrying amounts at December 31		December 31	December 31
		2023 $ 42,180 $ 42,180 $ 324,597	2022 $ 42,180 $ 42,180 $ 324,597 (Concluded)

The Corporation acquired FulFil Tech Co., Ltd. on December 16, 2008 and recognized goodwill of $366,777 thousand relating to molding department and electronic components department. The goodwill is mainly arising from the expected benefit from sales growth of electronic components and molding products, and the potential of developing new electronic models

The recoverable amount of plastic molding department was determined based on a value in use calculation that used the cash flow projections in the financial budgets approved by management covering a 5-year period; the discount rate was 12.12% and 11.97% in 2023 and 2022, respectively. Other key assumptions included budgeted revenue and budgeted gross margin. Such assumptions were based on the past performance of the cash-generating unit and management’s expectations of future market development.

16. BORROWINGS

a. Short-term borrowings

Unsecured borrowings - line of credit borrowings		December 31	December 31
		2023 $ 860,000	2022 $ 755,000

The weighted average effective interest rates on bank loans were 1.71%-1.72% and 1.49%-1.75% per annum as of December 31, 2023 and 2022, respectively.

b. Long-term borrowings

Secured borrowings (Note 27) Mortgage loans Less: Current portion		December	31
		2023 $ 43,813 (4,499) $ 39,314	2022 $ 48,247 (4,476) $ 43,771

The effective interest rate on long-term borrowings were 1.70% and 1.45% on December 31, 2023 and 2022, respectively.

32 -

17. BONDS PAYABLE

Domestic third unsecured convertible bonds Less: Current portion		December 31	December 31
		2023 $ 200,931 (200,931) $ -	2022 $ 1,178,724 - $ 1,178,724

On September 9, 2021, the Corporation issued 12,000 units NTD denominated unsecured convertible corporate bonds with 0% coupon rate, 3 years issue period and total principal amount of NT$1,200,000 thousand.

Unless (A) the period for suspension of transfer registration of ordinary shares required by laws, (B) the period from 15 business days prior to the date for suspension of transfer registration of allocated dividends requested by the Group the date for suspension of transfer registration of cash dividends or the date for suspension of transfer registration of cash capital increase to the record date for allocation of rights, (C) from the record date for capital decrease to the day immediately prior to the trading date of shares swapped upon capital decrease, and (D) the bondholders may the securities firm to ask the Group’s share affairs department to convert the convertible corporate bonds into the Group’s ordinary shares pursuant to the Regulations at any time from the day following expiration of one month after the convertible corporate bonds are issued (December 10, 2021) to the expiration date (September 9, 2024).

The conversion price of bonds is set based on the arithmetic mean of the business day’s closing share price multiplied by 102% premium rate before the effective date on August 20, 2021. In accordance with above method, the conversion price at the time of issuance of the convertible corporate bond is NT$58.5 per share on December 31, 2023.

If the bonds are not converted between December 10, 2021 and July 31, 2024, and the closing price of ordinary shares has exceeded 30% of the current conversion price for 30 consecutive business days, the Corporation may send a copy of “Bond Redemption Notice” with expiration of one month by registered mail, and the expiration date of the period is determined as the base date for recovery of bonds. The Corporation will redeem the bonds at their par value within 5 business days following the base date.

If the bonds are not converted between December 10, 2021 and July 31, 2024, and the closing price of ordinary shares is lower than 10% of original total issue amount, the Corporation will therefore be entitled to send out a 30-day-expiration “Bond Redemption Notice” based on names recorded on bondholder’s name list 5 business days prior to the mailing day. The Corporation will redeem the bonds at their par value within 5 business days following the base date.

The convertible bonds contain both liability and equity components: The equity component was presented in equity under the heading of capital surplus-options. The liability components are recognized as liabilities of embedded derivative financial instruments and non-derivative products. Such embedded derivative financial instrument have been assessed at fair value of NT$0 thousand; non-derivative product liabilities have been measured on December 31, 2023 and 2022 at NT$200,931 thousand and NT$1,178,724 thousand (included in Current portion of bonds payable and bonds payable), respectively based on amortized cost and its effective interest rate originally recognized is 1.0663%.

33 -

Proceeds from insurance (less transaction cost of NT$4,998 thousand)

Equity component

Liability component at the date of issue (including NT$1,162,417 thousand of bonds
payable and NT$360 thousand of financial asset at fair value - non-current)
Interest charged at an effective interest rate of 1.0663%
Loss on valuation of financial instrument

Liability component on December 31, 2022
Interest charged at an effective interest rate of 1.0663%
Convertible bonds converted into ordinary shares

Liability component on December 31, 2023

$ 1,337,453

(175,396)
1,162,057
16,307

360
1,178,724
11,525

(989,318)
$ 200,931

As of December 31, 2023, the third unsecured convertible bonds with a face value of $997,600 thousand have been converted into 17,052.7 ordinary shares. Among of 17,051.1 thousand shares, as the registration of the shares was not completed, the share options of amount $170,511 thousand were recognized as capital collected in advance.

18. OTHER PAYABLES

Payables for salaries or bonuses Others		December 31	December 31
		2023 $ 153,328 62,250 $ 215,578	2022 $ 93,870 45,042 $ 138,912

19. RETIREMENT BENEFIT PLANS

a. Defined contribution plans

The Corporation adopted a pension plan under the Labor Pension Act (LPA), which is a state-managed defined contribution plan. Under the LPA, an entity 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 the Corporation in accordance with the Labor Standards Act is operated by the government of the ROC. Pension benefits are calculated on the basis of the length of service and average monthly salaries of the 6 months before retirement. The Corporation contribute amounts equal to 2% of total monthly salaries and wages to a pension fund administered by the pension fund monitoring committee. Pension contributions are deposited in the Bank of Taiwan in the committee’s name. Before the end of each year, the Corporation assesses the balance in the pension fund. If the amount of the balance in the pension fund is inadequate to pay retirement benefits for employees who conform to retirement requirements in the next year, the Corporation is required to fund the difference in one appropriation that should be made before the end of March of the next year. The pension fund is managed by the Bureau of Labor Funds, Ministry of Labor (the “Bureau”); the Corporation has no right to influence the investment policy and strategy.

34 -

The amounts included in the balance sheets in respect of the Corporation’s defined benefit plans were as follows:

Present value of defined benefit obligation Fair value of plan assets Net defined benefit assets Movements in net defined benefit assets were as follows: Present Value of the Defined Benefit Obligation Balance at January 1, 2022 $ 23,633 Net interest expense (income) 118 Recognized in profit or loss 118 Remeasurement Return on plan assets (excluding amounts included in net interest) - Actuarial (gain) loss Changes in financial assumptions (1,238) Experience adjustments (160) Recognized in other comprehensive income (1,398) Benefits paid (1,448) Balance at December 31, 2022 20,905 Net interest expense (income) 261 Recognized in profit or loss 261 Remeasurement Return on plan assets (excluding amounts included in net interest) - Actuarial (gain) loss Experience adjustments (559) Recognized in other comprehensive income (559) Balance at December 31, 2023 $ 20,607		December	31
	2023 2022 $ 20,607 $ 20,905 (27,906) (27,321) $ (7,299) $ (6,416) Fair Value of the Plan Assets Net Defined Benefit Assets $ (26,531) $ (2,898) (133) (15) (133) (15) (2,105) (2,105) - (1,238) - (160) (2,105) (3,503) 1,448 - (27,321) (6,416) (342) (81) (342) (81) (243) (243) - (559) (243) (802) $ (27,906) $ (7,299)

Through the defined benefit plans under the Labor Standards Act, the Corporation 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 plans’ debt investments.
3) Salary risk: The present value of the defined benefit obligation is calculated using 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.
35 -

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 Expected rate of salary increase Mortality rate Turnover rate	December 31
	2023 2022 1.250% 1.250% 1.500% 1.500% According to the sixth experience life table of the insurance industry in Taiwan According to the sixth experience life table of the insurance industry in Taiwan 0%-7.5% 0%-7.5%

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

Discount rate 25% increase 25% decrease Expected rate of salary increase 25% increase 25% decrease		December	31
		2023 $ (357) $ 368 $ 362 $ (353)	2022 $ (386) $ 399 $ 392 $ (381)

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

Expected contributions to the plans for the next year Average duration of the defined benefit obligation		December	31
		2023 $ - 7.0 years	2022 $ - 7.5 years

20. EQUITY

a. Share capital

Ordinary shares

Number of shares authorized (in thousands) Shares authorized Number of shares issued and fully paid (in thousands) Shares issued Capital collected in advance		December 31	December 31
		2023 200,000 $ 2,000,000 123,726 $ 1,237,258 $ 170,511	2022 200,000 $ 2,000,000 123,724 $ 1,237,242 $ -

36 -

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

The authorized shares include 3,000 thousand shares allocated for the exercise of employee share options.

b. Capital surplus

May be used to offset a deficit, distributed as cash dividends, or transferred to share capital (Note 1) Issuance of ordinary shares The difference between the consideration paid and the carrying amount of the subsidiaries’ net assets during actual acquisition Consolidation excess Unclaimed dividends May only be used to offset a deficit (Note 2) Changes in percentage of ownership interests in subsidiaries May not be used for any purpose Convertible bonds option		December 31	December 31
		2023 $ 1,741,123 414,247 852,372 122 143,150 29,583 $ 3,180,597	2022 $ 776,519 413,526 852,372 107 143,150 175,396 $ 2,361,070

Note 1: Such capital surplus, which includes the amount in excess of par value of issued shares (including the issuance of ordinary shares at the excess premium, the conversion premium of bonds, and the premium of shares due to the consolidation excess, etc.), unclaimed dividends, and the difference between the consideration paid and the carrying amount of the subsidiaries’ net assets during actual acquisition, may be used to offset a deficit; in addition, when the Corporation has no deficit, such capital surplus may be distributed as cash dividends or transferred to share capital (limited to a certain percentage of the Corporation’s capital surplus and to once a year).
Note 2: Such capital surplus which arises from the effects of changes in ownership interests in subsidiaries may only be used to offset a deficit.
c. Retained earnings and dividends policy

Under the dividends policy as set forth in the amended Articles, where the Corporation made a profit in a fiscal year, the profit shall be first utilized for paying taxes, offsetting losses of previous years, setting aside as a legal reserve of 10% of the remaining profit, 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 Corporation’s board of directors as the basis for proposing a distribution plan, which should be resolved by the shareholders in their meeting for the distribution of dividends and bonuses to shareholders. For the policies on the distribution of compensation of employees and remuneration of directors after the amendment, refer to compensation of employees and remuneration of directors in Note 21-c.

37 -

As the Corporation is currently in the growth stage, the Corporation considers its industry development and long-term interests of shareholders as well as its programs to maintain operating efficiency and meet its financial goals when determining the distribution of bonuses in shares or cash. The board of directors shall propose allocation ratio every year and propose such allocation ratio at the shareholder’s meeting. For the distribution of bonuses to shareholders, cash dividends are preferred. Distribution of earnings may also be made in the form of share dividends; provided that the ratio of cash dividends distributed is 5% to 100% of the total dividends distributed.

An appropriation of earnings to a legal reserve shall be made until the legal reserve equals the Corporation’s paid-in capital. The legal reserve may be used to offset deficits. If the Corporation has no deficit and the legal reserve has exceeded 25% of the Corporation’s paid-in capital, the excess may be transferred to capital or distributed in cash.

Items referred to under Rule No. 1010012865 and Rule No. 1010047490 issued by the FSC and in the directive titled “Questions and Answers for Special Reserves Appropriated Following Adoption of IFRS Accounting Standards” should be appropriated to or reversed from a special reserve by the Corporation.

The appropriations of earnings for 2022 and 2021, which were approved by the shareholders in their meetings on June 16, 2023 and June 10, 2022, respectively, were as follows:

Legal reserve Special reserve Cash dividends Dividends per share (NT$)	Appropriation of Earnings	Appropriation of Earnings	Appropriation of Earnings
	For the Year Ended		December 31
		2022 $ 37,643 $ (168,395) $ 371,172 $ 3.00	2021 $ 25,211 $ 51,576 $ 247,448 $ 2.00

The shareholders’ meeting proposed to allocate capital surplus of $408,290 thousand for each dividend of $3.30 per share.

The appropriation of earnings for 2023, proposed by the Corporation’s board of directors on March 8, 2024, were as follows:

	For the Year	For the Year
		Ended
	December 31,
		2023
Legal reserve	$	64,732
Special reserve	$	101,031
Cash dividends	$	578,000
Dividends per share (NT$)	$	4.11

The appropriation of earnings and capital surplus for 2023 is subject to the resolution of the shareholders in the shareholders’ meeting to be held on June 21, 2024.

38 -

d. Special reserve

Balance at January 1 Appropriated special reserve (Reversals of) debits to other equity items Balance at December 31	For the Year Ended 2023 $ 687,191 (168,395) $ 518,796	For the Year Ended 2023 $ 687,191 (168,395) $ 518,796	December 31
		2023 $ 687,191 (168,395) $ 518,796	2022 $ 635,615 51,576 $ 687,191

On the initial application of the IFRSs, the net increase arising from the retained earnings was not enough for the special reserve appropriation; thus, the Corporation appropriated a special reserve at the amount of $230,916 thousand representing the remaining amount in retained earnings that resulted from the conversion to IFRS Accounting Standards. Additional special reserve should be appropriated for the amount equal to the difference between net debit balance reserves and the special reserve appropriated on the first-time adoption of IFRSs. Any special reserve appropriated may be reversed to the extent that the net debit balance reverses and is thereafter, distributed.

21. NET PROFIT

a. Other income

Consulting income (Note 26) Dividends Others (Note 26)	For the Year Ended December 31 2023 2022 $ 23,921 $ 19,051 5,089 11,703 705 1,247 $ 29,715 $ 32,001	For the Year Ended December 31 2023 2022 $ 23,921 $ 19,051 5,089 11,703 705 1,247 $ 29,715 $ 32,001	For the Year Ended December 31 2023 2022 $ 23,921 $ 19,051 5,089 11,703 705 1,247 $ 29,715 $ 32,001
		2023 $ 23,921 5,089 705 $ 29,715	2022 $ 19,051 11,703 1,247 $ 32,001

b. Depreciation, amortization and employee benefits expense

For the Year Ended December 31

Employee benefits expense Salaries expenses Labor insurance expenses Pension expenses Defined contribution plan Defined benefit plans Director’s remuneration Other employee benefits Depreciation Amortization			2023	Total $ 287,275 19,405 9,395 (81) 17,620 11,885 $ 345,499 $ 28,182 $ 9,781			2022
		Operating Costs $ 21,314 2,419 1,203 - - 1,585 $ 26,521 $ 8,364 $ 38	Operating Expenses $ 265,961 16,986 8,192 (81) 17,620 10,300 $ 318,978 $ 19,818 $ 9,743			Operating Costs $ 22,733 2,605 1,344 - - 1,363 $ 28,045 $ 18,105 $ 533	Operating Expenses $ 240,499 16,860 8,292 (15) 10,150 8,995 $ 284,781 $ 17,467 $ 12,796	Total $ 263,232 19,465 9,636 (15) 10,150 10,358 $ 312,826 $ 35,572 $ 13,329

39 -

As of December 31, 2023 and 2022, the Corporation had 231 and 251 employees, respectively, which included 6 directors and 6 directors not concurrently serving as employees, respectively. The average employee benefits expenses were $1,457 thousand and $1,235 thousand, respectively. The average employees’ salaries were $1,277 thousand and $1,074 thousand, respectively. The average adjustment of employee salary was 18.9% which the calculation standard was the same as employee benefits expense.

The remuneration of directors shall be allocated in accordance with the Articles of Incorporation and shall be paid by remuneration committee upon the resolution of the board of directors and reported in the shareholders' meeting. The remuneration is based on the content of work, education, expertise and other standards, and the Corporation's operating conditions. Employees’ performance and other factors such as salary increases or bonuses, and remuneration of managers are determined by compensation committee subject to the approval from the board of directors.

c. Compensation of employees and remuneration of directors

According to the Articles of Incorporation of the Corporation, the Corporation accrued compensation of employees and remuneration of directors at rates of no less than 3% and no higher than 2%, respectively, of the amount of current year’s net profit before income tax accumulated deficit, compensation of employees, and remuneration of directors. The compensation of employees and the remuneration of directors for the years ended December 31, 2023 and 2022, which were approved by the Corporation’s board of directors on March 8, 2024 and March 15, 2023, respectively, are as follows:

Accrual rate

Compensation of employees Remuneration of directors Amount	For the Year Ended December 31
	2023 2022 8.805% 8.740% 1.996% 1.990%

Compensation of employees Remuneration of directors	For the Year Ended December 31	For the Year Ended December 31
	2023 Cash $ 75,000 17,000	2022
		Cash $ 43,000 9,800

If there is a change in the amounts after the annual financial statements are authorized for issue, the differences are recorded as a change in the accounting estimate.

The Corporation held board of director’s meetings on March 15, 2023 and March 15, 2022 and the meeting resulted in the actual amounts of the compensation of employees and remuneration of directors.

40 -

Amounts approved in the board of directors’ meeting Amounts recognized in the annual financial statements	For the Year Ended December 31	For the Year Ended December 31
	2022 Compensation of Employees Remuneration of Directors $ 43,000 $ 9,800 $ 43,000 $ 9,800	2021
		Compensation of Employees Remuneration of Directors $ 31,000 $ 7,000 $ 31,000 $ 7,000

There is no difference between the actual amounts of the compensation of employees and remuneration of directors for 2022 and 2021 and recognized in the profit and loss for the years ended December 31, 2022 and 2021.

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

22. INCOME TAXES

a. Income tax recognized in profit or loss

Major components of income tax expense are as follows:

Current tax In respect of the current year Income tax on unappropriated earnings Adjustments for prior years Deferred tax In respect of the current year Adjustments to deferred tax attributable to changes in tax rates and laws Income tax expense recognized in profit or loss	For the Year Ended	For the Year Ended	December 31
		2023 $ 43,535 5,898 (2,365) 47,068 70,378 - 70,378 $ 117,446	2022 $ 75,472 - 3,022 78,494 (8,033) (2,535) (10,568) $ 67,926

41 -

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

Profit before tax Income tax expense calculated at the statutory rate Tax-exempt income Unrecognized deductible temporary differences Income tax on unappropriated earnings Adjustments for prior years’ tax Income tax expense recognized in profit or loss	For the Year Ended 2023 $ 759,811 $ 151,962 (38,049) - 5,898 (2,365) $ 117,446	For the Year Ended 2023 $ 759,811 $ 151,962 (38,049) - 5,898 (2,365) $ 117,446	December 31
		2023 $ 759,811 $ 151,962 (38,049) - 5,898 (2,365) $ 117,446	2022 $ 439,203 $ 87,841 (24,369) 3,967 - 487 $ 67,926

b. Current tax liabilities

Income tax payable		December	31
		2023 $ 28,605	2022 $ 52,611

c. Deferred tax assets and liabilities

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

For the year ended December 31, 2023

Deferred Tax Assets Temporary differences Allowance for exceeding limit Allowance for inventory valuation and obsolescence losses Financial assets at FVTPL	Opening Balance Recognized in Profit or Loss Recognized in Other Comprehensive Income Adjustments to Deferred Tax Attributable to Changes in Tax Rates and Laws Closing Balance $ 1,542 $ (1) $ - $ - $ 1,541 773 1,029 - - 1,802 640 (456) - - 184 $ 2,955 $ 572 $ - $ - $ 3,527

42 -

Deferred Tax Liabilities Temporary differences Gain on investments accounted for using the equity method Defined benefit obligations Unrealized exchange gains	Opening Balance Recognized in Profit or Loss Recognized in Other Comprehensive Income Adjustments to Deferred Tax Attributable to Changes in Tax Rates and Laws Closing Balance $ 88,161 $ 64,379 $ - $ - $ 152,540 1,282 17 160 - 1,459 9,160 6,554 - - 15,714 $ 98,603 $ 70,950 $ 160 $ - $ 169,713

For the year ended December 31, 2022

Deferred Tax Assets
Temporary differences
Allowance for
exceeding limit

Allowance for
inventory valuation
and obsolescence
losses
Financial assets at
FVTPL

Deferred Tax
Liabilities
Temporary differences
Gain on investments
accounted for
using the equity
method

Defined benefit
obligations
Unrealized exchange
gains
Financial assets at
FVTPL

Opening
Balance
Recognized in
Profit or Loss
Recognized in
Other
Comprehensive
Income
Adjustments to
Deferred Tax
Attributable to
Changes in Tax
Rates and Laws Closing Balance
$ -
$ 1,541
$ -
$ 1
$ 1,542
58
(461)
-
1,176
773

-

640

-

-

640
$ 58
$ 1,720
$ -
$ 1,177
$ 2,955
Opening
Balance
Recognized in
Profit or Loss
Recognized in
Other
Comprehensive
Income
Adjustments to
Deferred Tax
Attributable to
Changes in Tax
Rates and Laws Closing Balance
$ 101,169
$ (13,008)
$ -
$ -
$ 88,161
579
3
700
-
1,282
1,873
7,451
-
(164)
9,160

1,953

(759)

-

(1,194)

-
$ 105,574
$ (6,313)
$ 700
$ (1,358)
$ 98,603

43 -
d. Deductible temporary differences for which no deferred tax assets have been recognized in the balance sheets

Deductible temporary differences		December 31	December 31
		2023 $ 105,464	2022 $ 129,916

The unrecognized deductible temporary differences are goodwill amortization and excess loss allowance.

e. Income tax assessments

The income tax returns of the Corporation through 2021 have been assessed by the tax authorities.

23. EARNINGS PER SHARE

The earnings and weighted average number of ordinary shares outstanding used in the computation of earnings per share are as follows:

Net Profit for the Year

Earnings used in the computation of diluted earnings per share Effect of potentially dilutive ordinary shares Interest on convertible bonds	For the Year Ended	For the Year Ended	December 31
		2023 $ 642,365 11,525 $ 653,890	2022 $ 371,277 12,796 $ 384,073

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

Weighted average number of ordinary shares used in the computation of basic earnings per share Effect of potentially dilutive ordinary shares Convertible bonds Compensation of employees Weighted average number of ordinary shares used in the computation of diluted earnings per share	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2023 125,443 3,460 1,079 129,982	2022 123,724 19,481 819 144,024

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

44 -

24. CAPITAL MANAGEMENT

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

The strategy for managing the capital structure of the Corporation is based on the scale of the business, the future growth of the industry and the blueprints of the products’ development. The Corporation calculates trading fund and cash based on its production capacity in order to have a long-term and completed plan. The Corporation takes into account product competition to estimate the products’ contribution, operating profit margin and cash flow. It also considers the business cycle and the product’s’ life cycle and risks when deciding the appropriate capital structure.

Key management personnel of the Corporation review the capital structure on a regular basis. As part of this review, the key management personnel consider the cost of capital and the risks associated with each class of capital. Generally, the Corporation uses a cautious risk management strategy.

25. FINANCIAL INSTRUMENTS

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

Except as detailed in the following table, the Company considers that the carrying amounts of financial instruments in the parent company only financial statements that are not measured at fair value approximate their fair values.

December 31, 2023

Financial liabilities Financial liabilities at amortized cost Convertible bonds December 31, 2022 Financial liabilities Financial liabilities at amortized cost Convertible bonds	Carrying Amount $ 200,931 Carrying Amount $ 1,178,724			Fair Value	Fair Value
			Level 1 $ 308,822	Level 2 Level 3 $ - $ - FairValue		Total $ 308,822
			Level 1 $ 1,229,880	Level 2 $ -	Level 3 $ -	Total $ 1,229,880

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

December 31, 2023 Financial assets at FVTPL Listed shares Emerging market shares Domestic unlisted shares Overseas unlisted shares Private funds December 31, 2022 Financial assets at FVTPL Listed shares Emerging market shares Overseas unlisted shares Private funds	Level 1 $ 75,093 30,070 - - - $ 105,163 Level 1 $ 86,154 9,334 - - $ 95,488	Level 2 $ - - - - - $ - Level 2 $ - - - - $ -	Level 3 $ - 12,597 20,883 24,189 15,905 $ 73,574 Level 3 $ - 11,148 28,725 14,283 $ 54,156	Total $ 75,093 42,667 20,883 24,189 15,905 $ 178,737 Total $ 86,154 20,482 28,725 14,283 $ 149,644

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

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

Balance at January 1 Recognized in profit or loss (included in net loss on fair value changes of financial instruments at FVTPL) Purchases Refund of capital reduction Balance at December 31	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2023 $ 54,156 (3,766) 30,000 (6,816) $ 73,574	2022 $ 54,643 (3,689) 7,238 (4,036) $ 54,156

3) Valuation techniques and inputs applied for Level 2 fair value measurement

Financial Instrument Domestic third unsecured convertible bonds	Valuation Technique and Inputs
	Under the assumption that bonds will be redeemed on September 9, 2024, discount rate adopted is calculated via interpolation method using government bond yield rates from public offer 2-year and 5- year period.

46 -
4) Valuation techniques and inputs applied for Level 3 fair value measurement

The fair values of emerging market shares are measured using the market approach, while the fair values of domestic unlisted shares, overseas unlisted shares and private funds are measured using the asset approach.

c. Categories of financial instruments

Financial assets Mandatorily classified as at FVTPL Financial assets at amortized cost (Note 1) Financial liabilities Financial liabilities at amortized cost (Note 2)	December 31
	2023 2022 $ 178,737 $ 149,644 1,895,108 1,638,346 2,587,229 3,207,570

1) The balances include financial assets measured at amortized cost, which comprise cash and cash equivalents, financial assets at amortized cost, notes receivable and trade receivables, other receivables and refundable deposits.
2) The balances include financial liabilities at amortized cost, which comprise notes payable and trade payables, other payables less salaries payable, short-term borrowings, long-term borrowings, current portion of long-term borrowings, bonds payable, current portion of bonds payable and guarantee deposits received.
d. Financial risk management objectives and policies

The Corporation’s major financial instruments include cash and cash equivalents, financial assets mandatorily classified as at FVTPL, financial assets at amortized costs, equity investment, accounts receivables, trade payables, borrowings, bonds payables and lease liabilities. The Corporation’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 Corporation through internal risk reports which analyze exposures by degree and magnitude of risks. These risks include market risk (including foreign currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

1) Market risk

The Corporation’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).

There has been no change to the Corporation’s exposure to market risks or the manner in which these risks are managed and measured.

a) Foreign currency risk

The Corporation has foreign currency sales and purchases, which exposes the Corporation to foreign currency risk. The carrying amounts of the Corporation’s foreign currency denominated monetary assets and monetary liabilities and of the derivatives exposed to foreign currency risk at the end of the reporting period are set out in Note 28.

47 -

Sensitivity analysis

The Corporation is mainly exposed to the USD and RMB.

The following table details the Corporation’s sensitivity to a 1% increase and decrease in the New Taiwan dollar (the functional currency) against the relevant foreign currencies. The sensitivity rate used when reporting foreign currency risk internally to key management personnel and representing management’s assessment of the reasonably possible change in foreign exchange rates is 1%. The sensitivity analysis included only outstanding foreign currency-denominated monetary items and foreign exchange forward contracts designated as cash flow hedges, and their translation was adjusted at the end of the reporting period for a 1% change in foreign currency rates. A negative number below indicates a decrease in pre-tax profit associated with the New Taiwan dollar strengthening 1% against the relevant currency. For a 1% weakening of the New Taiwan dollar against the relevant currency, there would be an equal and opposite impact on pre-tax profit, and the balances below would be positive.

Equity	USD Impact For the Year Ended December 31 2023 2022 $ (1,996) $ (1,654)	RMB Impact
		For the Year Ended December 31
		2023 2022 $ (2,226) $ (1,600)

This was mainly attributable to the exposure on outstanding receivables and payables in USD and RMB which were not hedged at the end of the reporting period.

In management’s opinion, the sensitivity analysis is unrepresentative of the inherent foreign currency risk because the exposure at the end of the reporting period did not reflect the exposure during the period.

b) Interest rate risk

The Corporation is exposed to interest rate risk because the Corporation borrows funds at both fixed and floating interest rates.

The carrying amounts of the Corporation’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	December 31
	2023 2022 $ 890,445 $ 767,750 1,106,564 1,985,648 577,509 457,153

Sensitivity analysis

The sensitivity analysis below was determined based on the Corporation’s exposure to interest rates for both derivative and non-derivative instruments at the end of the reporting period. For floating rate assets and liabilities, the analysis was prepared assuming the amount of each liability outstanding at the end of the reporting period was outstanding for the whole year. A 100-basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates.

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If interest rates had been 100-basis point higher/lower and all other variables were held constant, the Corporation’s pre-tax profit for the years ended December 31, 2023 and 2022 would have increased/decreased by $5,775 thousand and $4,572 thousand, respectively, which was mainly attributable to the Corporation’s exposure to interest rates on its variable-rate deposits.

c) Other price risk

The Corporation was exposed to equity price risk through its investments in domestic listed shares, domestic emerging market shares, domestic and overseas unlisted shares and private funds. In addition, the Corporation has appointed a special team to monitor the price risk and will consider hedging the risk exposure should the need arise.

Sensitivity analysis

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

If equity prices had been 1% higher/lower, pre-tax profit for the years ended December 31, 2023 and 2022 would have increased/decreased by $1,787 thousand and $1,496 thousand, respectively, as a result of the changes in fair value of financial assets at FVTPL.

2) Credit risk

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

In order to reduce credit risk, the management team of the Corporation designated a special team to decide the credit ratings of counterparties and other monitoring procedures to make sure there are appropriate actions taken to collect the overdue receivables. Additionally, on each balance sheet date, the Corporation reviews the recoverable amounts to ensure appropriate allowances have been made for doubtful accounts. Therefore, the Corporation considers its credit risk to be significantly reduced.

The Corporation continuously assesses the financial conditions of customers with outstanding receivables.

As the counterparties of the Corporation are financial institutions and companies with good credit ratings, the Corporation has limited credit risk.

3) Liquidity risk

The Corporation manages liquidity risk by monitoring and maintaining a level of cash and cash equivalents deemed adequate to finance the Corporation’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.

49 -

The Corporation relies on bank borrowings as a significant source of liquidity. The Corporation had available unutilized bank loan facilities set out in below.

Financing facilities

Unsecured bank overdraft facilities, reviewed annually: Amount used Amount unused Secured bank overdraft facilities Amount used Amount unused		December 31	December 31
		2023 $ 860,000 2,040,000 $ 2,900,000 $ 43,813 - $ 43,813	2022 $ 755,000 2,485,000 $ 3,240,000 $ 48,247 - $ 48,247

26. TRANSACTIONS WITH RELATED PARTIES

Besides information disclosed elsewhere in the other notes, details of transactions between the Corporation and other related parties are disclosed below.

a. Related party name and category

Related Party Name
Grand Advance Inc.
Syncmold Enterprise (Samoa) Corp.
Syncmold Enterprise (USA) Corp.
Syncmold Enterprise Vietnam Co., Ltd.
Syncmold Enterprise (Singapore) Pte. Ltd.
Syncmold Enterprise (Malaysia) Sdn., Bhd.
Leohab Enterprise Co., Ltd.
Gatetech Technology Inc.
Gatetech (Suzhou) Technology Co., Ltd.
Fuzhou Fulfil Tech Co., Ltd.
Fujian Khuan Hua Precise Mold Co., Ltd.
Chongqing Fulfil Tech Co., Ltd.
Dongguan Khuan Huang Precise Mold Plastic Co., Ltd.
Suzhou Fulfil Electronics Co., Ltd.
Zhongshan Fulfil Tech. Co., Ltd
Commuwell Enterprise (Thailand) Co., Ltd.
Smart Automation Technology Inc.
Chen Chien Yuan
Chen Chien Hung

Related Party Category

Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Indirect subsidiary
Indirect subsidiary
Indirect subsidiary
Indirect subsidiary
Indirect subsidiary
Indirect subsidiary
Indirect subsidiary
Indirect subsidiary
Associate
The Corporation’s director (Note)
Related party in substance (first-degree
relative of the Corporation’s director)

Note: Since August 2023, the natural person has become the Corporation’s director after being the legal representative of the Corporation’s director.

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b. Sales of goods

Line Item Related Party Category/Name Sales Subsidiaries Indirect subsidiaries Other operating revenue Indirect subsidiaries - royalty Suzhou Fulfil Electronics Co., Ltd. Fuzhou Fulfil Tech Co., Ltd. Zhongshan Fulfil Tech. Co., Ltd. Others	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2023 $ 74,043 89 74,132 97,201 61,839 74,304 - 233,344 $ 307,476	2022 $ 34,607 - 34,607 61,259 67,292 108,051 11,996 248,598 $ 283,205

The transaction prices and terms of collection between the Corporation and its related parties are the same as the non-related parties, except for subsidiaries that purchase raw materials on behalf of the Corporation, whose service income is decided with reference to market prices, and royalty income which is based on that stated in the agreements.

c. Purchases of goods

Related Party Category/Name Subsidiaries Indirect subsidiaries Zhongshan Fulfil Tech. Co., Ltd Suzhou Fulfil Electronics Co., Ltd. Fuzhou Fulfil Tech Co., Ltd. Others	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2023 $ 24,240 1,315,032 991,006 408,601 248,255 $ 2,987,134	2022 $ 23,851 1,652,508 1,089,901 508,590 155,072 $ 3,429,922

Prices of transactions between the Corporation and related parties were made with reference to market prices, and payment terms are the same as that with non-related parties.

d. Operating costs - manufacturing expense

Related Party Category Associates e. Operating expenses Related Party Category Subsidiaries	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
	2023 2022 $ 39 $ 99 For the Year Ended December 31
		2023 $ 9,225	2022 $ 11,086

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f. Acquisition of property, plant and equipment

For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
2023 2022 $ - $ 476 For the Year Ended December 31
	2023 2022 $ - $ 3,216 - 1,749 $ - $ 4,965 December 31
2023 2022 $ 280 $ 1,948 152 - - 1,058 $ 432 $ 3,006 For the Year Ended December 31
	2023 $ 11 2 4 $ 17	2022 $ 19 - 10 $ 29

The rental amounts agreed in lease contracts between the Corporation and other related parties are determined based on market prices and general payment terms.

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

Line Item Related Party Category/Name Trade receivables Subsidiaries Indirect subsidiaries Zhongshan Fulfil Tech. Co., Ltd Suzhou Fulfil Electronics Co., Ltd. Fuzhou Fulfil Tech Co., Ltd. Others Other receivables Subsidiaries Indirect subsidiaries Gatetech (Suzhou) Technology Co., Ltd. Others		December 31	December 31
		2023 $ 38,716 74,044 56,422 33,387 - $ 202,569 $ 913 8,153 1,614 $ 10,680	2022 $ 20,883 108,340 26,564 26,937 5,535 $ 188,259 $ 253 8,125 558 $ 8,936

The outstanding trade receivables from related parties are unsecured. For the years ended December 31, 2023 and 2022, no allowance loss was recognized for trade receivables from related parties.

Other receivables between the Corporation and its related parties are mainly from the purchase of raw materials. The Corporation recognizes the transactions that have not been paid to the suppliers as other payables.

i. Payables to related parties (excluding loans from related parties)

Line Item Related Party Category/Name Trade payables Subsidiaries Indirect subsidiaries Suzhou Fulfil Electronics Co., Ltd. Zhongshan Fulfil Tech. Co., Ltd. Fuzhou Fulfil Tech Co., Ltd. Chongqing Fulfil Tech Co., Ltd. Others Other payables Subsidiaries Associates		December 31	December 31
		2023 $ 18,002 480,185 556,108 164,316 81,164 5,706 $ 1,305,481 $ 4,199 - $ 4,199	2022 $ 8,928 222,567 361,977 121,136 51,715 4,321 $ 770,664 $ 1,365 78 $ 1,443

The outstanding trade payables to related parties are unsecured and would be repaid in cash.

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j. Loans to related parties

Interest revenue

Related Party Category Other receivables Subsidiaries	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2023 $ -	2022 $ 174

The Corporation provided Subsidiaries with unsecured short-term loans at rate of 1.43%-2.13%, which was comparable to market interest rates in 2022.

k. Loans from related parties

Related Party Category/Name Other payables Subsidiaries Grand Advance Inc. Syncmold Enterprise (Samoa) Corp.		December 31	December 31
		2023 $ 107,468 - $ 107,468	2022 $ 168,905 227,254 $ 396,159

The interest rate of short-term borrowings from related parties was 0% in 2023 and 2022.

l. Endorsements and guarantees

Related Party Category/Name Subsidiaries Amount endorsed Amount utilized		December 31	December 31
		2023 $ 1,271,231 $ 473,497	2022 $ 1,114,200 $ 334,733

m. Non-operating income

Line Item Related Party Category/Name Non-operating income Subsidiaries Service revenue Indirect subsidiaries Gatetech (Suzhou) Technology Co., Ltd. Others Endorsement guarantee for service fee income Subsidiaries		December 31	December 31
		2023 $ 4,440 16,304 3,177 $ 23,921 $ 331	2022 $ 900 17,075 1,076 $ 19,051 $ 277

The Corporation provided management consultancy services to its subsidiaries in 2023 and 2022. The conditions of transaction price payment was based on to the market price agreed. Service revenue was agreed according to the content of the contract. The rest are comparable to non-related parties.

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n. Remuneration of key management personnel

Short-term employee benefits Post-employment benefits	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2023 $ 34,431 314 $ 34,745	2022 $ 26,797 314 $ 27,111

The remuneration of directors and key executives, as determined by the remuneration committee, was based on the performance of individuals and market trends.

27. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

The following assets were provided as collateral for borrowings and performance bond:

Property, plant and equipment		December	31
		2023 $ 75,932	2022 $ 76,337

28. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

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

December 31, 2023

		Foreign		Carrying
		Currency	Exchange Rate	Amount
Financial assets
Monetary items
USD	$	51,874	30.705 (USD:NTD)	$ 1,592,791
RMB		56,211	4.327 (RMB:NTD)	243,225
Non-monetary items
Subsidiaries accounted for using the equity
method
USD		174,183	30.705 (USD:NTD)	5,348,298
Financial assets at FVTPL - non-current
USD		788	30.705 (USD:NTD)	24,189
Financial liabilities
Monetary items
USD		45,372	30.705 (USD:NTD)	1,393,147
RMB		4,773	4.327 (RMB:NTD)	20,653

55 -

December 31, 2022

		Foreign		Carrying
		Currency	Exchange Rate	Amount
Financial assets
Monetary items
USD	$	43,249	30.71 (USD:NTD)	$ 1,328,177
RMB		47,324	4.408 (RMB:NTD)	208,604
Non-monetary items
Subsidiaries accounted for using the equity
method
USD		164,360	30.71 (USD:NTD)	5,047,491
Financial assets at FVTPL - non-current
USD		935	30.71 (USD:NTD)	28,725
Financial liabilities
Monetary items
USD		37,864	30.71 (USD:NTD)	1,162,803
RMB		11,030	4.408 (RMB:NTD)	48,620

The significant realized and unrealized foreign exchange gains (losses) were as follows:

For the Year Ended December 31

Foreign Currency USD RMB Others	2023 Exchange Rate Net Foreign Exchange Gains (Losses) 31.155 (USD:NTD) $ 32,384 4.396 (RMB:NTD) (2,476) (69) $ 29,839	2022
		Exchange Rate Net Foreign Exchange Gains (Losses) 29.805 (USD:NTD) $ 45,607 4.422 (RMB:NTD) 8,823 (473) $ 53,957

29. SEPARATELY DISCLOSED ITEMS

a. Information about significant transactions and investees:
1) Financing provided to others (Table 1)
2) Endorsements/guarantees provided (Table 2)
3) Marketable securities held (excluding investments in subsidiaries, associates and joint ventures) (Table 3)
4) Marketable securities acquired or disposed of at costs or prices of at least NT$300 million or 20% of the paid-in capital (Table 4)
5) Acquisition of individual real estate at costs of at least NT$300 million or 20% of the paid-in capital (None)
56 -
6) Disposal of individual real estate at prices of at least NT$300 million or 20% of the paid-in capital (None)
7) Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital (Table 5)
8) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital (Table 6)

9) Trading in derivative instruments (None)

b. Information on investees (Table 7)
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 8)
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 (Tables 1, 2, 5, 6 and 8):
- a) The amount and percentage of purchases and the balance and percentage of the related payables at the end of the period.
- b) The amount and percentage of sales and the balance and percentage of the related receivables at the end of the period.
- 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 period 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 receipt 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 9)
57 -

TABLE 1

SYNCMOLD ENTERPRISE CORPORATION

FINANCING PROVIDED TO OTHERS FOR THE YEAR ENDED DECEMBER 31, 2023 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

No.	Lender	Borrower	Financial Statement Account	Related Party	Highest Balance for the Period (Notes 1 and 2)	Ending Balance (Notes 1 and 2)	Actual Amount Borrowed	Interest Rate (%)	Nature of Financing	Business Transaction Amount	Reasons for Short-term Financing	Allowance for Impairment Loss	Collateral	Collateral	Financing Limit for Each Borrower	Aggregate Financing Limit
													Item	Value
0	Syncmold Enterprise Corporation	Syncmold Enterprise (Samoa) Corp. Grand Advance Inc. Syncmold Enterprise Vietnam Co., Ltd. Gatetech Technology Inc. Leohab Enterprise Co., Ltd. Commuwell Enterprise (Thailand) Co., Ltd.	Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties	Yes Yes Yes Yes Yes Yes	$ 100,000 100,000 100,000 100,000 100,000 50,000	$ 100,000 100,000 - 100,000 100,000 50,000	$ - - - - - -	- - - - - -	Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing	$ - - - - - -	Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital	$ - - - - - -	- - - - - -	- - - - - -	$ 1,342,274 (20% of the net worth of the Corporation) $ 1,342,274 (20% of the net worth of the Corporation) $ 1,342,274 (20% of the net worth of the Corporation) $ 1,342,274 (20% of the net worth of the Corporation) $ 1,342,274 (20% of the net worth of the Corporation) $ 1,342,274 (20% of the net worth of the Corporation)	$ 2,684,549 (40% of the net worth of the Corporation) $ 2,684,549 (40% of the net worth of the Corporation) $ 2,684,549 (40% of the net worth of the Corporation) $ 2,684,549 (40% of the net worth of the Corporation) $ 2,684,549 (40% of the net worth of the Corporation) $ 2,684,549 (40% of the net worth of the Corporation)
1	Syncmold Enterprise (Samoa) Corp.	Fujian Khuan Hua Precise Mold Co., Ltd. Syncmold Enterprise Corporation Dongguan Khuan Huang Precise Mold Plastic Co., Ltd.	Other receivables from related parties Other receivables from related parties Other receivables from related parties	Yes Yes Yes	61,410 319,332 61,410	61,410 92,115 61,410	- - -	- 0.00 -	Short-term financing Short-term financing Short-term financing	- - -	Operating capital Operating capital Operating capital	- - -	- - -	- - -	426,983 (20% of the net worth of Syncmold Enterprise (Samoa) Corp.) 426,983 (20% of the net worth of Syncmold Enterprise (Samoa) Corp.) 426,983 (20% of the net worth of Syncmold Enterprise (Samoa) Corp.)	1,067,457 (50% of the net worth of Syncmold Enterprise (Samoa) Corp.) 1,067,457 (50% of the net worth of Syncmold Enterprise (Samoa) Corp.) 1,067,457 (50% of the net worth of Syncmold Enterprise (Samoa) Corp.)

(Continued)

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No.	Lender	Borrower	Financial Statement Account	Related Party	Highest Balance for the Period (Notes 1 and 2)	Ending Balance (Notes 1 and 2)	Actual Amount Borrowed	Interest Rate (%)	Nature of Financing	Business Transaction Amount	Reasons for Short-term Financing	Allowance for Impairment Loss	Collateral	Collateral	Financing Limit for Each Borrower	Aggregate Financing Limit
													Item	Value
		Chongqing Fulfil Tech Co., Ltd. Fullking Development Limited	Other receivables from related parties Other receivables from related parties	Yes Yes	$ 138,173 70,622	$ 138,173 69,547	$ 46,058 69,547	2.00 0.00	Short-term financing Short-term financing	$ - -	Operating capital Operating capital	$ - -	- -	- -	$ 426,983 (20% of the net worth of Syncmold Enterprise (Samoa) Corp.) 426,983 (20% of the net worth of Syncmold Enterprise (Samoa) Corp.)	$ 1,067,457 (50% of the net worth of Syncmold Enterprise (Samoa) Corp.) 1,067,457 (50% of the net worth of Syncmold Enterprise (Samoa) Corp.)
2	Grand Advance Inc.	Syncmold Enterprise Corporation Fullking Development Limited Syncmold Enterprise (Samoa) Corp. Kunshan Fulfil Tech Co., Ltd. Suzhou Fulfil Electronics Co., Ltd. Syncmold Enterprise (USA) Corp.	Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties	Yes Yes Yes Yes Yes Yes	168,878 46,058 61,410 61,410 61,410 27,635	107,468 - 61,410 61,410 61,410 27,635	107,468 - - - - 12,282	0.00 0.00 - - - 0.00	Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing	- - - - - -	Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital	- - - - - -	- - - - - -	- - - - - -	645,363 (20% of the net worth of Grand Advance Inc.) 645,363 (20% of the net worth of Grand Advance Inc.) 645,363 (20% of the net worth of Grand Advance Inc.) 645,363 (20% of the net worth of Grand Advance Inc.) 645,363 (20% of the net worth of Grand Advance Inc.) 645,363 (20% of the net worth of Grand Advance Inc.)	1,613,407 (50% of the net worth of Grand Advance Inc.) 1,613,407 (50% of the net worth of Grand Advance Inc.) 1,613,407 (50% of the net worth of Grand Advance Inc.) 1,613,407 (50% of the net worth of Grand Advance Inc.) 1,613,407 (50% of the net worth of Grand Advance Inc.) 1,613,407 (50% of the net worth of Grand Advance Inc.)

(Continued)

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No.	Lender	Borrower	Financial Statement Account	Related Party	Highest Balance for the Period (Notes 1 and 2)	Ending Balance (Notes 1 and 2)	Actual Amount Borrowed	Interest Rate (%)	Nature of Financing	Business Transaction Amount	Reasons for Short-term Financing	Allowance for Impairment Loss	Collateral	Collateral	Financing Limit for Each Borrower	Aggregate Financing Limit
													Item	Value
3	Fuzhou Fulfil Tech Co., Ltd	Fujian Khuan Hua Precise Mold Co., Ltd. Fuqing Fuqun Electronic Hardware Tech Co., Ltd. Suzhou Fulfil Electronics Co., Ltd. Chongqing Fulfil Tech Co., Ltd.	Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties	Yes Yes Yes Yes	$ 43,352 56,358 43,352 26,011	$ 21,676 30,346 - 26,011	$ - - - -	- - - -	Short-term financing Short-term financing Short-term financing Short-term financing	$ - - - -	Operating capital Operating capital Operating capital Operating capital	$ - - - -	- - - -	- - - -	$ 206,601 (20% of the net worth of Fuzhou Fulfil Tech Co., Ltd.) 206,601 (20% of the net worth of Fuzhou Fulfil Tech Co., Ltd.) 206,601 (20% of the net worth of Fuzhou Fulfil Tech Co., Ltd.) 206,601 (20% of the net worth of Fuzhou Fulfil Tech Co., Ltd.)	$ 516,504 (50% of the net worth of Fuzhou Fulfil Tech Co., Ltd.) 516,504 (50% of the net worth of Fuzhou Fulfil Tech Co., Ltd.) 516,504 (50% of the net worth of Fuzhou Fulfil Tech Co., Ltd.) 516,504 (50% of the net worth of Fuzhou Fulfil Tech Co., Ltd.)
4	Suzhou Fulfil Electronics Co., Ltd.	Kunshan Fulfil Tech Co., Ltd.	Other receivables from related parties	Yes	39,017	34,682	-	-	Short-term financing	-	Operating capital	-	-	-	316,525 (20% of the net worth of Suzhou Fulfil Electronics Co., Ltd.)	791,312 (50% of the net worth of Suzhou Fulfil Electronics Co., Ltd.)
5	Zhongshan Fulfil Tech. Co., Ltd.	Dongguan Khuan Huang Precise Mold Plastic Co., Ltd. Suzhou Fulfil Electronics Co., Ltd. Chongqing Fulfil Tech Co., Ltd.	Other receivables from related parties Other receivables from related parties Other receivables from related parties	Yes Yes Yes	34,682 34,682 43,352	34,682 - -	- - -	- - -	Short-term financing Short-term financing Short-term financing	- - -	Operating capital Operating capital Operating capital	- - -	- - -	- - -	256,234 (20% of the net worth of Zhongshan Fulfil Tech. Co., Ltd.) 256,234 (20% of the net worth of Zhongshan Fulfil Tech. Co., Ltd.) 256,234 (20% of the net worth of Zhongshan Fulfil Tech. Co., Ltd.)	640,586 (50% of the net worth of Zhongshan Fulfil Tech. Co., Ltd.) 640,586 (50% of the net worth of Zhongshan Fulfil Tech. Co., Ltd.) 640,586 (50% of the net worth of Zhongshan Fulfil Tech. Co., Ltd.)

Note 1: The amount of loans was approved by the board of directors.

Note 2: The highest balance, ending balance, and the actual amount borrowed were calculated based on the exchange rate at the end of 2023.

(Concluded)

60 -

TABLE 2

SYNCMOLD ENTERPRISE CORPORATION

ENDORSEMENTS/GUARANTEES PROVIDED FOR THE YEAR ENDED DECEMBER 31, 2023 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

No.	Endorser/Guarantor	Endorsee/Guarantee	Endorsee/Guarantee	Limit on Endorsement/ Guarantee Given on Behalf of Each Party	Maximum Amount Endorsed/ Guaranteed During the Period	Outstanding Endorsement/ Guarantee at the End of the Period	Actual Borrowing Amount	Amount Endorsed/ Guaranteed by Collateral	Ratio of Accumulated Endorsement/ Guarantee to Net Equity in Latest Financial Statements (%)	Aggregate Endorsement/ Guarantee Limit	Endorsement/ Guarantee Given by Parent on Behalf of Subsidiaries	Endorsement/ Guarantee Given by Subsidiaries on Behalf of Parent	Endorsement/ Guarantee Given on Behalf of Companies in Mainland China
		Name	Relationship
0	Syncmold Enterprise Corporation	Gatetech Technology Inc. Leohab Enterprise Co., Ltd. Syncmold Enterprise Vietnam Co., Ltd. Commuwell Enterprise (Thailand) Co., Ltd.	Subsidiary Subsidiary Subsidiary Subsidiary	$1,342,274 (20% of the net worth of the Corporation) $1,342,274 (20% of the net worth of the Corporation) $2,013,412 (30% of the net worth of the Corporation) $2,013,412 (30% of the net worth of the Corporation)	$ 200,000 340,000 614,100 (US$ 20,000 thousand) 117,221 (THB 130,000 thousand)	$ 200,000 340,000 614,100 (US$ 20,000 thousand) 117,221 (THB 130,000 thousand)	$ 100,000 282,000 64,446 27,051	$ - - - -	2.98 5.07 9.15 1.75	$3,355,686 (50% of the net worth of the Corporation) $3,355,686 (50% of the net worth of the Corporation) $3,355,686 (50% of the net worth of the Corporation) $3,355,686 (50% of the net worth of the Corporation)	Y Y Y Y	N N N N	N N N N

61 -

TABLE 3

SYNCMOLD ENTERPRISE CORPORATION

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

Holding Company Name	Type and Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account		December 31, 2023	December 31, 2023		Note
				Number of Shares	Carrying Amount	Percentage of Ownership (%)	Fair Value
Syncmold Enterprise Corporation Suzhou Fulfil Electronics Co., Ltd. Zhongshan Fulfil Tech. Co., Ltd. Kunshan Fulfil Tech Co., Ltd. Gatetech (Suzhou) Technology Co., Ltd.	Stock Gigastone Corporation Tiga Gaming Inc. Foxfortune Technology Ventures Ltd. Hercules BioVenture, L.P. WK Technology Fund IX II Ltd. Winmate Inc. Private funds China Development of Healthcare Venture of Limited Partnership Structured deposit Monthly profit 23070041 Monthly profit 23070042 Monthly profit 23070043 Monthly profit 23100166 Monthly profit 23100167 Monthly profit 23100168 Linked interest rate structured deposit products No. 202310002 Linked interest rate structured deposit products No. 202311001 Linked interest rate structured deposit products No. 202312001 Linked interest rate structured deposit products No. 202312002 Monthly profit 23050055 Monthly profit 23110160 Monthly profit 23080007 Monthly profit 23100089 Monthly profit 23100222	- - - - - - - - - - - - - - - - - - - - - -	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 - 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 - 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	754,011 1,332,132 780,000 210,526 3,000,000 613,000 20,360,270 - - - - - - - - - - - - - - -	$ 30,070 12,597 18,498 5,691 20,883 75,093 15,905 78,588 78,592 82,968 78,268 73,917 43,475 43,450 65,128 43,365 65,046 43,428 43,426 43,523 43,403 65,102	1.49 5.06 5.80 2.63 2.67 0.78 0.96 - - - - - - - - - - - - - - -	$ 30,070 12,597 18,498 5,691 20,883 75,093 15,905 78,588 78,592 82,968 78,268 73,917 43,475 43,450 65,128 43,365 65,046 43,428 43,426 43,523 43,403 65,102	(Notes 2 and 7) (Notes 3 and 7) (Notes 4 and 7) (Notes 4 and 7) (Notes 4 and 7) (Notes 2 and 7) (Notes 4 and 7) (Notes 5 and 7) (Notes 5 and 7) (Notes 5 and 7) (Notes 5 and 7) (Notes 5 and 7) (Notes 5 and 7) (Notes 5 and 7) (Notes 5 and 7) (Notes 5 and 7) (Notes 5 and 7) (Notes 5 and 7) (Notes 5 and 7) (Notes 5 and 7) (Notes 5 and 7) (Notes 5 and 7)

(Continued)

62 -

Holding Company Name	Type and Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account		December 31, 2023	December 31, 2023		Note
				Number of Shares	Carrying Amount	Percentage of Ownership (%)	Fair Value
Zhongshan Fulfil Tech. Co., Ltd.	Mutual funds ICBC Finance Coreoptimization of 14 Days Holding Fixed-income Open Financial Products for Legal Person ICBC Finance Coreoptimization of 14 Days Holding Fixed-income Open Financial Products for Legal Person ICBC Wealth Management Tiantian Xin Wenyue Interbank Certificate of Deposit and Deposit Fixed Income Open Financial Products for Legal Person	- - -	Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current	19,217,834 14,406,454 9,912,768	$ 87,779 65,803 43,760	- - -	$ 87,779 65,803 43,760	(Notes 6 and 7) (Notes 6 and 7) (Notes 6 and 7)

Note 1: The negotiable securities in the table above are the shares, bonds and mutual funds recognized under IFRS 9 - “Financial Instruments”.

Note 2: The shares are calculated at the strike price as of December 31, 2023.

Note 3: The shares are measured using the market approach.

Note 4: The shares are measured using the asset approach.

Note 5: The structured commodity is calculated at its contract worth as of December 31, 2023.

Note 6: The mutual fund certificate is calculated at its contract worth as of December 31, 2023.

Note 7: No guarantees, pledged collateral or other restricted situations.

Note 8: Refer to Tables 7 and 8 for information on investments in subsidiaries and associates.

(Concluded)

63 -

TABLE 4

SYNCMOLD ENTERPRISE CORPORATION 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 DECEMBER 31, 20323 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Company Name	Type and Name of Marketable Securities	Financial Statement Account	Counterparty	Relationship	Beginning Balance	Beginning Balance	Acquisition	Acquisition		Disposal	Disposal			Ending Balance
					Number of Shares	Amount	Number of Shares	Amount	Number of Shares	Amount	Carrying Amount	Gain (Loss) on Disposal	Number of Shares	Amount	Note
Dongguan Khuan Huang Precise Mold Plastic Co., Ltd. Zhongshan Fulfil Tech. Co., Ltd. Kunshan Fulfil Tech Co., Ltd. Gatetech (Suzhou) Technology Co., Ltd. Suzhou Fulfil Electronics Co., Ltd.	Structed commodity - linked rate Structed commodity - linked rate Structed commodity - monthly profit Structed commodity - monthly profit Structed commodity - monthly profit	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	E.SUN Bank (China), Ltd. E.SUN Bank (China), Ltd. Fubon Bank (China) Fubon Bank (China) Fubon Bank (China)	- - - - -	- - - - -	RMB 14,971 RMB 10,012 RMB 10,018 RMB 20,066 RMB 85,028	- - - - -	RMB - RMB 170,000 RMB 30,000 RMB 70,000 RMB 260,000	- - - - -	RMB 15,078 RMB 130,960 RMB 20,144 RMB 55,798 RMB 246,519	RMB 15,000 RMB 130,000 RMB 20,000 RMB 55,000 RMB 245,000	RMB 78 RMB 960 RMB 144 RMB 798 RMB 1,519	- - - - -	RMB - RMB 50,053 RMB 20,035 RMB 35,135 RMB 100,528	Note Note Note Note Note

Note: The amount at the end of the period included financial asset evaluation adjustments.

64 -

TABLE 5

SYNCMOLD ENTERPRISE CORPORATION

TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE YEAR ENDED DECEMBER 31, 2023

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

Buyer	Related Party	Relationship		Transaction Details	Transaction Details		Abnormal Transaction	Abnormal Transaction	Notes/Accounts Receivable (Payable)	Notes/Accounts Receivable (Payable)	Note
			Purchases/ Sales	Amount	% of Total	Payment Terms	Unit Price	Payment Terms	Ending Balance	% of Total
Zhongshan Fulfil Tech. Co., Ltd. Fuzhou Fulfil Tech Co., Ltd. Suzhou Fulfil Electronics Co., Ltd. Chongqing Fulfil Tech Co., Ltd. Kunshan Fulfil Tech Co., Ltd. Fuqing Fuqun Electronic Hardware Tech Co., Ltd. Dongguan Khuan Huang Precise Mold Plastic Co., Ltd. Syncmold Enterprise Corporation Suzhou Fulfil Electronics Co., Ltd. Fuzhou Fulfil Tech Co., Ltd. Zhongshan Fulfil Tech. Co., Ltd.	Syncmold Enterprise Corporation Syncmold Enterprise Corporation Syncmold Enterprise Corporation Syncmold Enterprise Corporation Suzhou Fulfil Electronics Co., Ltd. Fuzhou Fulfil Tech Co., Ltd. Zhongshan Fulfil Tech. Co., Ltd. Zhongshan Fulfil Tech. Co., Ltd. Fuzhou Fulfil Tech Co., Ltd. Suzhou Fulfil Electronics Co., Ltd. Chongqing Fulfil Tech Co., Ltd. Kunshan Fulfil Tech Co., Ltd. Fuqing Fuqun Electronic Hardware Tech Co., Ltd. Dongguan Khuan Huang Precise Mold Plastic Co., Ltd.	Parent company Parent company Parent company Parent company Indirect subsidiary Indirect subsidiary Indirect subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Indirect subsidiary Indirect subsidiary Indirect subsidiary	Sales Sales Sales Sales Sales Sales Sales Purchases Purchases Purchases Purchases Purchases Purchases Purchases	$ (1,315,032) (408,601) (991,006) (232,407) (388,118) (182,134) (133,653) 1,315,032 408,601 991,006 232,407 388,118 182,134 133,653	(69) (26) (40) (49) (94) (43) (40) 44 14 33 8 20 14 9	Note Note Note Note Note Note Note Note Note Note Note Note Note Note	$ - - - - - - - - - - - - - -	- - - - - - - - - - - - - -	$ 556,108 164,316 480,185 81,164 71,018 17,816 22,570 (556,108) (164,316) (480,185) (81,164) (71,018) (17,816) (22,570)	68 23 41 44 78 18 27 (42) (13) (37) (6) (14) (4) (5)

Note: Payment terms are the same as the payment terms of non-related parties.

65 -

TABLE 6

SYNCMOLD ENTERPRISE CORPORATION

RECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL DECEMBER 31, 2023

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

Company Name	Related Party	Relationship	Ending Balance (Note)	Turnover Rate		Overdue	Amount Received in Subsequent Period	Allowance for Impairment Loss
					Amount	Actions Taken
Grand Advance Inc. Fuzhou Fulfil Tech Co., Ltd. Zhongshan Fulfil Tech. Co., Ltd. Suzhou Fulfil Electronics Co., Ltd.	Syncmold Enterprise Corporation Syncmold Enterprise Corporation Syncmold Enterprise Corporation Syncmold Enterprise Corporation	Parent company Parent company Parent company Parent company	$ 107,468 (Note) 164,316 556,108 480,185	- - - -	$ - - - -	- - - -	$ 107,468 77,213 255,795 228,498	$ - - - -

Note: Financing.

66 -

TABLE 7

SYNCMOLD ENTERPRISE CORPORATION

INFORMATION ON INVESTEES FOR THE YEAR ENDED DECEMBER 31, 2023 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Investor Company	Investee Company	Location	Main Businesses and Products	Original Investment Amount	Original Investment Amount	As of December 31, 2023	As of December 31, 2023	As of December 31, 2023	Net Income (Loss) of the Investee	Share of Profit (Loss)	Note
				December 31, 2023	December 31, 2022	Number of Shares	%	Carrying Amount
Syncmold Enterprise Corporation Grand Advance Inc. Syncmold Enterprise (Samoa) Corp. Gatetech Technology Inc. Gatech Holdings Ltd. Leohab Enterprise Co., Ltd. Sweet International Group Ltd.	Grand Advance Inc. Syncmold Enterprise (Samoa) Corp. Syncmold Enterprise (USA) Corp. High Grade Tech Co., Ltd. Corebio Technologies Co., Ltd. Smart Automation Technology Inc. Leohab Enterprise Co., Ltd. Gatetech Technology Inc. Syncmold Enterprise Vietnam Co., Ltd. Syncmold Enterprise (MALAYSIA) Sdn., Bhd. Syncmold Enterprise (SINGAPORE) Pte., Ltd. Syncmold Enterprise (THAILAND) Co., Ltd. Canford International Limited Fullking Development Limited Full Glary Holding Limited Forever Business Development Limited Full Celebration Limited Gatech Holding Ltd. Gatech International Ltd. Sweet International Group Ltd. Commuwell Enterprise (Thailand) Co., Ltd. Lucky King Holdings Ltd.	Samoa Samoa USA Taiwan Taiwan Taiwan Taiwan Taiwan Vietnam Malaysia Singapore Thailand Samoa Hong Kong Hong Kong Samoa Samoa Samoa Samoa British Virgin Islands Thailand Mauritius	General investment business General investment business General investment business The design and sale of television hangers and related import and export businesses Medical technology and precision instrument wholesale and retail Software design services Precision hardware components manufacturing Precise molding and magnesium alloy die caster manufacturing and transaction business Trading, import and export and investment in electronic parts Trading, import and export in electronic parts, customer support and service center Trading, import and export in electronic parts, electronic components and parts design Trading, import and export and investment in electronic parts General investment business General investment business General investment business General investment business General investment business General investment business General investment business General investment business Plastic shot and hardware components manufacturing General investment business	$ 506,240 110,598 32 36,075 52,000 15,680 232,677 557,356 579,944 7,192 1,100 33,638 119,342 160,175 259,720 125,957 147,710 647,041 657,284 147,834 141,564 147,834	$ 506,240 110,598 32 36,075 52,000 15,680 232,677 556,063 579,944 7,192 1,100 33,638 119,342 160,175 259,720 125,957 147,710 647,041 657,284 147,834 132,534 147,834	- 3,546 - 2,280 5,200 1,568 16,620 42,561 - - - - - - - - - 20,130 20,268 5,868 1,450 5,868	100.00 100.00 100.00 35.63 38.29 49.00 70.00 74.05 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00	$ 3,224,952 2,123,346 (5,152) 163,862 - 11,193 215,524 661,321 551,497 2,320 5,890 12,743 1,582,635 1,211,656 274,789 273,479 111,104 590,610 590,610 322,579 251,287 322,577	$ 404,082 78,213 (1,869) 61,787 - (7,573) 3,409 (16,989) 81,193 262 205 8 231,432 204,258 31,074 10,928 (20,238) (14,935) (14,935) 27,832 10,137 27,832	$ 403,574 68,420 (1,869) 22,012 - (3,711) 968 (14,530) 81,193 262 205 8 231,424 204,283 27,495 10,269 (20,238) (14,935) (14,935) 27,832 10,137 27,832	(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 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 1)

Note 1: Calculated based on the audited financial statements of the investee company and the Corporation’s shareholding ratio.

Note 2: Calculated based on the unaudited financial statements of the investee company and the investee Corporation’s shareholding ratio.

Note 3: Refer to Table 8 for related information on investees from mainland China.

67 -

TABLE 8

SYNCMOLD ENTERPRISE CORPORATION

INFORMATION ON INVESTMENTS IN MAINLAND CHINA FOR THE YEAR ENDED DECEMBER 31, 2023 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Investee Company	Main Businesses and Products	Paid-in Capital	Method of Investment	Accumulated Outward Remittance for Investment from Taiwan as of December 31, 2022	Remittance of Funds	Remittance of Funds	Accumulated Outward Remittance for Investment from Taiwan as of December 31, 2023	Net Income (Loss) of the Investee	% Ownership of Direct or Indirect Investment	Investment Gain (Loss)	Carrying Amount as of December 31, 2023	Accumulated Repatriation of Investment Income as of December 31, 2023
					Outward	Inward
Fuzhou Fulfil Tech Co., Ltd. Fujian Khuan Hua Precise Mold Co., Ltd. Fuqing Fuqun Electronic Hardware Tech Co., Ltd. Dongguan Khuan Huang Precise Mold Plastic Co., Ltd. Suzhou Fulfil Electronics Co., Ltd. Zhongshan Fulfil Tech. Co., Ltd. Kunshan Fulfil Tech Co., Ltd. Chongqing Fulfil Tech Co., Ltd.	Electronic parts processing and manufacturing. Trading and related import and export business Processing, manufacturing, trading and related import and export business of various metal molds, plastic molds and plastic injection molds Electronic parts processing and manufacturing. Trading and related import and export business Processing, manufacturing, trading and related import and export business of various metal molds, plastic molds and plastic injection molds Electronic parts processing and manufacturing. Trading and related import and export business Electronic parts processing and manufacturing. Trading and related import and export business Manufacturing and assembling of laptops uses precise bearing, hardware and related accessories The processing, manufacturing, related imports and exports of all electronic, plastic and hardware parts	$ 42,013 107,577 57,332 121,561 17,941 147,949 227,188 135,061	Invested through Syncmold Enterprise (Samoa) Corp. Invested through Syncmold Enterprise (Samoa) Corp. Invested through Syncmold Enterprise (Samoa) Corp. Invested through Forever Business Development Limited Invested through Canford International Limited Invested through Fullking Development Limited Invested through Full Glary Holding Limited Invested through Full Celebration Limited	$ 63,959 (US$ 2,083 thousand) 41,636 (US$ 1,356 thousand) - - - - 184,230 (US$ 6,000 thousand) -	$ - - - - - - -	$ - - - - - - -	$ 63,959 (US$ 2,083 thousand) 41,636 (US$ 1,356 thousand) - - - - 184,230 (US$ 6,000 thousand) -	$ 98,061 (16,527) 15,777 5,560 231,432 204,247 31,074 (20,238)	100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00	$ 85,175 (16,598) 12,870 2,915 230,651 205,007 27,540 (22,726)	$ 1,023,123 218,565 160,460 174,320 1,582,624 1,281,172 278,266 111,092	$ 2,427,660 (US$ 79,064 thousand) - 119,688 (US$ 3,898 thousand) 84,132 (US$ 2,740 thousand) 1,308,954 (US$ 42,630 thousand) 1,759,826 (US$ 57,314 thousand) - 556,497 (US$ 18,124 thousand)

(Continued)

68 -

Investee Company	Main Businesses and Products	Main Businesses and Products	Paid-in Capital	Paid-in Capital	Method of Investment	Accumulated Outward Remittance for Investment from Taiwan as of December 31, 2022	Remittance of Funds	Remittance of Funds	Accumulated Outward Remittance for Investment from Taiwan as of December 31, 2023	Net Income (Loss) of the Investee	% Ownership of Direct or Indirect Investment	Investment Gain (Loss)	Carrying Amount as of December 31, 2023	Accumulated Repatriation of Investment Income as of December 31, 2023
							Outward	Inward
Gatetech (Suzhou) Technology Co., Ltd. Suzhou Leoho Electronics Co., Ltd.	Aluminum and magnesium alloy manufacturing and trading Precision hardware components manufacturing		$ 699,193 200,386		Invested through Gatech International Ltd. Invested through Lucky King Holdings Ltd.	$ 746,132 (US$ 24,300 thousand) 137,497 (US$ 4,478 thousand)	$ - -	$ - -	$ 746,132 (US$ 24,300 thousand) 137,497 (US$ 4,478 thousand)	$ (14,935) 27,832	74.05 70.00	$ (11,021) 19,483	$ 590,610 322,577	$ - -

Accumulated Outward Remittance for Investment in Mainland China as of December 31, 2023		Investment Amount Authorized by the Investment Commission, MOEA		Upper Limit on the Amount of Investment Stipulated by the Investment Commission, MOEA
$1,402,451 (US$45,675 thousand)		$2,377,887 (US$77,443 thousand)		$4,221,231

Note: Calculated based on the audited financial statements of the investee company and the Corporation’s shareholding ratio.

(Concluded)

69 -

TABLE 9

SYNCMOLD ENTERPRISE CORPORATION

INFORMATION ON MAJOR SHAREHOLDERS DECEMBER 31, 2023

Name of Major Shareholder	Shares	Shares
	Number of Shares	Percentage of Ownership (%)
Chen Chiu-Lang	8,708,211	6.18

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 preferred shares held by shareholders with ownership of 5% or greater, that have been issued without physical registration (including treasury shares) by the Corporation 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.
70 -

SYNCMOLD ENTERPRISE CORPORATION

THE CONTENTS OF STATEMENTS OF MAJOR ACCOUNTING ITEMS

Item
Major Accounting Items in Assets, Liabilities and Equity
Statement of cash and cash equivalents
Statement of financial assets at fair value through profit or loss - current
Statement of trade receivables
Statement of inventories
Statement of financial assets at FVTPL - non-current
Statement of changes in investments accounted for using the equity method
Statement of changes in property, plant and equipment
Statement of changes in accumulated depreciation and accumulated impairment of
property, plant and equipment
Statement of changes in intangible assets
Statement of other payables
Statement of deferred income tax liabilities
Statement of short-term borrowings
Statement of long-term borrowings
Major Accounting Items in Profit or Loss
Statement of net operating revenue
Statement of operating cost
Statement of operating expenses

**Statement Index **

1
2
3
4
5
6
Note 12
Note 12
Note 14
Note 18
Note 22
7
8
9
10
11

71 -

STATEMENT 1

SYNCMOLD ENTERPRISE CORPORATION

STATEMENT OF CASH AND CASH EQUIVALENTS DECEMBER 31, 2023 (In Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Item Petty cash Cash in banks Checking accounts Demand deposits Foreign currency demand deposits (Note 1) Foreign currency time deposits (Note 2)	Amount $ 1,137 1,758 32,714 544,795 767,625 $ 1,348,029

Note 1: The amount of US$15,538 thousand was calculated based on the exchange rate of US$1=NT$30.705. The amount of RMB15,371 thousand was calculated based on the exchange rate of RMB1=NT$4.327. The amount of EUR5 thousand was calculated based on the exchange rate of EUR1=NT$33.98 and the amount of SGD15 thousand was calculated based on the exchange rate of SGD1=NT$23.29 and the amount of JPY262 thousand was calculated based on the exchange rate of JPY1=NT$0.2172 and the amount of THB639 thousand was calculated based on the exchange rate of THB1=NT$0.9017.
Note 2: The amount of US$25,000 thousand was calculated based on the exchange rate of US$1=NT$30.705.
72 -

STATEMENT 2

SYNCMOLD ENTERPRISE CORPORATION

STATEMENT OF FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS - CURRENT DECEMBER 31, 2023

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

Item Stock Winmate Inc.	Balance, January 1, 2023 Shares Amount 1,038,000 $ 86,154	Acquisition Shares Amount - $ -	Decrease Gain (Losses) on Financial Assets at FVTPL - Shares Amount Non-current (425,000)$ (45,158) $ 34,097	Balance, December 31, 2023 Shares Stock Price Amount Collateral Note 613,000 122.5 $ 75,093 None -
	Shares 1,038,000	Shares -	Shares (425,000)	Shares Stock Price 613,000 122.5

73 -

STATEMENT 3

SYNCMOLD ENTERPRISE CORPORATION

STATEMENT OF TRADE RECEIVABLES DECEMBER 31, 2023 (In Thousands of New Taiwan Dollars)

Client Name A B C D Others (Note) Less: Allowance for impairment loss	Amount $ 76,333 45,793 26,720 12,967 40,232 202,045 (92) $ 201,953

Note: The amount from each individual client included in others does not exceed 5% of the account balance.

74 -

STATEMENT 4

SYNCMOLD ENTERPRISE CORPORATION

STATEMENT OF INVENTORIES DECEMBER 31, 2023 (In Thousands of New Taiwan Dollars)

Item Products Finished goods Raw material Less: Allowance for inventory valuation losses		Amount
		Cost Net Realized Value $ 58,415 $ 58,026 4,648 4,434 3,747 3,747 66,810 $ 66,207 (9,013) $ 57,797

75 -

STATEMENT 5

SYNCMOLD ENTERPRISE CORPORATION

STATEMENT OF FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS - NON-CURRENT DECEMBER 31, 2023

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

Item Domestic emerging market shares Gigastone Corporation Tiga Gaming Inc. Domestic unlisted shares WK Technology Fund IX II Ltd. Overseas unlisted shares Hercules BioVenture, L.P. Foxfortune Technology Limited Private funds China Development of Healthcare Venture of Limited Partnership	Balance, January 1, 2023 Shares Amount 847,011 $ 9,334 1,332,132 11,148 20,482 - - 210,526 9,079 1,000,000 19,646 28,725 20,360,270 14,283 $ 63,490	Acquisition Shares Amount - $ - - - - 3,000,000 30,000 - - - - - - - $ 30,000	Decrease Gain (Losses) on Financial Assets at FVTPL - Shares Amount Non-current (93,000) $ (3,659) $ 24,395 - - 1,449 (3,659) 25,844 - - (9,117) - - (3,388) (220,000) (6,816) 5,668 (6,816) 2,280 - - 1,622 $ (10,475) $ 20,629	Balance, December 31, 2023 Shares Amount Collateral Note 754,011 $ 30,070 None - 1,332,132 12,597 None - 42,667 3,000,000 20,883 None - 210,526 5,691 None - 780,000 18,498 None - 24,189 20,360,270 15,905 None - $ 103,644
	Shares 847,011 1,332,132 - 210,526 1,000,000 20,360,270	Shares - - 3,000,000 - - -	Shares (93,000) - - - (220,000) -	Shares 754,011 1,332,132 3,000,000 210,526 780,000 20,360,270

76 -

STATEMENT 6

SYNCMOLD ENTERPRISE CORPORATION

STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD FOR THE YEAR ENDED DECEMBER 31, 2023 (In Thousands of New Taiwan Dollars)

Unlisted companies Grand Advance Inc. Syncmold Enterprise (Samoa) Corp. Syncmold Enterprise (USA) Corp. High Grade Tech Co., Ltd. Corebio Technologies Co., Ltd. Smart Automation Technology Inc. Leohab Enterprise Co., Ltd. Gatetech Technology Inc. Syncmold Enterprise Vietnam Co., Ltd. Syncmold Enterprise (Malaysia) Sdn. Bhd. Syncmold Enterprise (Singapore) Pte. Ltd. Syncmold Enterprise (Thailand) Co., Ltd. Add: Credit balance of Investments reclassified to non-current liabilities	Balance as of January 1, 2023 Shares (In Thousands) Shareholding Ratio % Amount - 100.00 $ 2,875,187 3,546 100.00 2,172,304 - 100.00 (3,319) 2,280 35.63 153,143 5,200 38.29 - 1,568 49.00 14,945 16,620 70.00 217,034 42,432 73.82 682,832 - 100.00 488,823 - 100.00 2,167 - 100.00 5,581 - 100.00 12,627 6,621,324 3,319 $ 6,624,643		Adjustments of the Year	Cash Dividends $ - (88,300) - (27,360) - - - - - - - - $ (115,660)	Balance of December 31, 2023 Shares (In Thousands) Shareholding Ratio % Amount Note - 100.00 $ 3,224,952 Notes 1 and 2 3,546 100.00 2,123,346 Notes 1 and 2 - 100.00 (5,152) Notes 1 and 2 2,280 35.63 163,862 Notes 1 and 2 5,200 38.29 - Notes 2 and 3 1,568 49.00 11,193 Notes 1 and 2 16,620 70.00 215,524 Notes 1 and 2 42,561 74.05 661,321 Notes 1 and 2 - 100.00 551,497 Notes 1 and 2 - 100.00 2,320 Notes 1 and 2 - 100.00 5,890 Notes 1 and 2 - 100.00 12,743 Notes 1 and 2 6,967,496 5,152 $ 6,972,648
			Exchange Difference Share of Other Differences on Between Comprehensiv e Translating the Consideration Income of Share of Profit Financial and Carrying Subsidiaries or Loss of Statements of Amount of Accounted for Increase in Investments Subsidiaries and Associates Foreign Operations Subsidiaries Acquired Using the Equity Method $ - $ 403,574 $ (53,809) $ - $ - - 68,420 (29,078) - - - (1,869) 36 - - - 22,012 - - 16,067 - - - - - - (3,711) (41) - - - 968 (2,518) - 40 1,293 (14,530) (8,003) 721 (992) - 81,193 (18,519) - - - 262 (109) - - - 205 104 - - - 8 108 - - $ 1,293 $ 556,532 $ (111,829) $ 721 $ 15,115
	Shares (In Thousands) Shareholding Ratio % - 100.00 3,546 100.00 - 100.00 2,280 35.63 5,200 38.29 1,568 49.00 16,620 70.00 42,432 73.82 - 100.00 - 100.00 - 100.00 - 100.00				Shares (In Thousands) Shareholding Ratio % - 100.00 3,546 100.00 - 100.00 2,280 35.63 5,200 38.29 1,568 49.00 16,620 70.00 42,561 74.05 - 100.00 - 100.00 - 100.00 - 100.00

Note 1: Calculated based on the audited financial statements of the investee companies and the shareholding ratio.

Note 2: No pledges or guaranteed investments accounted for using the equity method as at the end of 2023.

Note 3: Calculated based on the unaudited financial statements of the investee company and the Corporation’s shareholding ratio.

77 -

STATEMENT 7

SYNCMOLD ENTERPRISE CORPORATION

STATEMENT OF SHORT-TERM BORROWINGS FOR THE YEAR ENDED DECEMBER 31, 2023 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Credit Type
Contract Date
Annual Rate
(%)
Bank loan
Yuanta Commercial Bank Co., Ltd.
2023/10/13-2024/01/11
1.72

Yuanta Commercial Bank Co., Ltd.
2023/10/31-2024/01/26
1.71
Yuanta Commercial Bank Co., Ltd.
2023/11/23-2024/02/21
1.71
CTBC Bank Co., Ltd.
2023/11/14-2024/01/31
1.72
CTBC Bank Co., Ltd.
2023/11/24-2024/02/23
1.72
TAIPEIFUBON Commercial Bank Co., Ltd.
2023/11/10-2024/01/31
1.72
TAIPEIFUBON Commercial Bank Co., Ltd.
2023/11/14-2024/01/31
1.72
E.SUN Commercial Bank, Ltd.
-
-
Taishin International Bank
-
-
Bank SinoPac Company Limited
-
-

Ending
Balance
Credit Line
Security
Guarantees
Note
$ 50,000
$ 500,000
None
Note 1
140,000
500,000
None
Note 1
100,000
500,000
None
Note 1
120,000
500,000
None
Note 2
250,000
500,000
None
Note 2
100,000
500,000
None
Note 3
100,000
500,000
None
Note 3
-
500,000
None
-
-
400,000
None
-

-
500,000
None
-
$ 860,000

Note 1: Short-term borrowings facilities from Yuanta Commercial Bank Co., Ltd. was $500,000 thousand.

Note 2: Short-term borrowings facilities from CTBC Bank Co., Ltd. was $500,000 thousand.

Note 3: Short-term borrowings facilities from TAIPEIFUBON Commercial Bank Co., Ltd. was $500,000 thousand.

78 -

STATEMENT 8

SYNCMOLD ENTERPRISE CORPORATION

STATEMENT OF LONG-TERM BORROWINGS FOR THE YEAR ENDED DECEMBER 31, 2023 (In Thousands of New Taiwan Dollars)

Credit Type Contract Date Annual Rate (%) Bank loan E.SUN Commercial Bank, Ltd. 2021/01/27- 2033/01/27 1.70 E.SUN Commercial Bank, Ltd. 2021/01/29- 2033/01/29 1.70 Less: Current portions	Ending Balance Credit Line Security Guarantees $ 38,334 $ 38,334 Property, plant and equipment 5,479 5,479 Property, plant and equipment 43,813 $ 43,813 (4,499) $ 39,314

79 -

STATEMENT 9

SYNCMOLD ENTERPRISE CORPORATION

STATEMENT OF NET OPERATING REVENUE FOR THE YEAR ENDED DECEMBER 31, 2023 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Item Quantity Average Price Sales revenue Display hinges 17,008,191 $ 193 Others Other operating revenue	Amount $ 3,286,471 11,944 3,298,415 233,563 $ 3,531,978

80 -

STATEMENT 10

SYNCMOLD ENTERPRISE CORPORATION

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

Item
Raw material, beginning of year

Add: Raw material purchased
Less: Raw material, end of the year
Sale of raw material
Transferred to operating expense

Raw materials used
Direct labor
Manufacturing expense

Manufacturing cost
Add: Work in process, beginning of year
Less: Work in process, end of year

Cost of finished goods
Add: Finished goods, beginning of year
Less: Finished goods, end of year

Cost of finished goods sold
Add: Product, beginning of year
Purchase of products
Less: Product, end of year
Podium material
Transferred to operating expense

Cost of products
Add: Sale of material
Less: Reversal of write-downs of inventories

Cost of goods sold
Other operating cost

Amount
$ 5,088
12,537
(3,747)
(256)

(41)
13,581
11,768

36,370
61,719
455

-
62,174
2,968

(4,648)
60,494
21,312
2,981,841
(58,415)
(1,041)

(552)
2,943,145
256

5,143
3,009,038

93
$ 3,009,131

81 -

STATEMENT 11

SYNCMOLD ENTERPRISE CORPORATION

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

Item Salary (Note 2) Others (Note 1)	Selling Expenses General and Administrative Research and Development Expense Expected Credit Loss Reversed on Trade Receivables $ 28,395 $ 166,326 $ 96,971 $ - 50,654 61,725 50,028 86 $ 79,049 $ 228,051 $ 146,999 $ 86	Total $ 291,692 162,493 $ 454,185

Note 1: The amount of each item in others does not exceed 5% of the account balance.

Note 2: Included salary, pension and remuneration of directors.

82 -

AI assistant

SYNCMOLD — Annual Report 2023

51868_rns_2023-12-22_a1bff829-fe34-4546-8806-900e157d116f.pdf

Syncmold Enterprise Corporation

INDEPENDENT AUDITORS’ REPORT

Opinion

Basis for Opinion

Key Audit Matters

Occurrence of Sales Revenue

Other Matter

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

Auditors’ Responsibilities for the Audit of the Financial Statements

Notice to Readers

SYNCMOLD ENTERPRISE CORPORATION

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

SYNCMOLD ENTERPRISE CORPORATION

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

SYNCMOLD ENTERPRISE CORPORATION

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

SYNCMOLD ENTERPRISE CORPORATION

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

SYNCMOLD ENTERPRISE CORPORATION

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

SYNCMOLD ENTERPRISE CORPORATION

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

SYNCMOLD ENTERPRISE CORPORATION

1. GENERAL INFORMATION

2. APPROVAL OF FINANCIAL STATEMENTS

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

Effective Date New IFRS, Amended and Revised Standards and Interpretations Announced by IASB (Note 1)

4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

f. Inventories

g. Investments in subsidiaries

j. Goodwill

1) Financial assets

i. Financial assets at FVTPL

2) Equity instruments

n. Revenue recognition

o. Leasing

1) The Corporation as lessor

p. Borrowing costs

2) Retirement benefits

1) Current tax

5. MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

6. CASH AND CASH EQUIVALENTS

7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

8. FINANCIAL ASSETS AT AMORTIZED COST

9. TRADE RECEIVABLES, NET

December 31, 2023

10. INVENTORIES

11. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

12. PROPERTY, PLANT AND EQUIPMENT

13. LEASE ARRANGEMENTS

b. Lease liabilities

14. INTANGIBLE ASSETS

Computer Software Cost

15. GOODWILL

16. BORROWINGS

17. BONDS PAYABLE

18. OTHER PAYABLES

19. RETIREMENT BENEFIT PLANS

a. Defined contribution plans

b. Defined benefit plans

20. EQUITY

d. Special reserve

21. NET PROFIT

a. Other income

b. Depreciation, amortization and employee benefits expense

Accrual rate

22. INCOME TAXES

23. EARNINGS PER SHARE

Net Profit for the Year

Shares

24. CAPITAL MANAGEMENT

25. FINANCIAL INSTRUMENTS

1) Market risk

a) Foreign currency risk

Sensitivity analysis

b) Interest rate risk

Sensitivity analysis

SYNCMOLD Annual Report 2023