TA YIH - Audit Report / Information 2022

Ta Yih Industrial Co., Ltd.

Standalone Financial Statements for the Years Ended December 31, 2022 and 2021 and Independent Auditors’ Report

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INDEPENDENT AUDITORS’ REPORT

The Board of Directors and Shareholders Ta Yih Industrial Co., Ltd.

Opinion

We have audited the accompanying standalone financial statements of Ta Yih Industrial Co., Ltd. (the “Company”), which comprise the standalone balance sheets as of December 31, 2022 and 2021, and the standalone statements of comprehensive income, changes in equity and cash flows for the years then ended, and the notes to the standalone financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying standalone financial statements present fairly, in all material respects, the standalone financial position of the Company as of December 31, 2022 and 2021, and its standalone financial performance and its standalone 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 Auditing and Attestation of Financial Statements by Certified Public Accountants and 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 standalone Financial Statements section of our report. We are independent of the Company in accordance with The Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements for the year ended December 31, 2022. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

The key audit matter identified in the audit of the Company’s standalone financial statements for the year ended December 31, 2022 is as follows:

Sales Revenue from Hub Warehouse

Ta Yih Industrial Co., Ltd. mainly manufactures and sells automobile and locomotive lamps. The Company also sells its products to overseas markets. The sales model of overseas markets depends on the delivery of goods from hub warehouse. Ta Yih Industrial Co., Ltd. usually relies on the statements or other information from the external custodians of hub warehouse when making important strategic decisions. The inventory change related to the delivery from hub warehouse is used as the basis for recognizing revenue, and sales revenue is recognized when the customer picks up the goods (transfer of risks and rewards).

The sales revenue generated from the hub warehouse was $1,530,564 thousand for the year ended December 31, 2022, which accounted for 32% of the total operating revenue. The transaction volume of revenue from the hub warehouse is significant to the standalone financial statements of Ta Yih Industrial Co., Ltd. for the year ended December 31, 2022; therefore, the revenue recognition of sales from hub warehouse needed to be verified through multiple internal controls and was identified as a key audit matter.

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

We obtained an understanding and tested the effectiveness of the design of the internal control and implementation related to the authenticity of sales revenue.
We confirmed the existence of revenue by sampling the sales revenue from shipment of hub warehouse and checked the corresponding documents such as export declarations, bills of lading and bank statement’s records.

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

Management is responsible for the preparation and fair presentation of the standalone 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 standalone financial statements that are free from material misstatement, whether due to fraud or error.

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

Those charged with governance, including the audit committee, are responsible for overseeing the Company’s financial reporting process.

Auditors’ Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalone 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 standalone 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 standalone 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 Company’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 Company’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 standalone 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 Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone 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 Company to express an opinion on the standalone 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 a matter that was of most significance in the audit of the standalone financial statements for the year ended December 31, 2022 and is therefore the key audit matter. We describe this matter 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 Chi-Chen Lee and Chao-Chin Yang.

Deloitte & Touche Taipei, Taiwan Republic of China

March 8, 2023

Notice to Readers

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

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

Ta Yih Industrial Co., Ltd.

STANDALONE BALANCE SHEETS DECEMBER 31, 2022 AND 2021 (In Thousands of New Taiwan Dollars)

ASSETS CURRENT ASSETS Cash (Notes 4 and 6) Financial assets at amortized cost - current (Notes 4 and 7) Notes receivable (Notes 4 and 8) Accounts receivable (Notes 4, 8 and 20) Accounts receivable from related parties (Notes 4, 8, 20 and 27) Other receivables (Notes 4 and 8) Other receivables from related parties (Notes 4, 8 and 27) Inventories (Notes 4 and 9) Prepayments (Note 27) Other current assets (Note 14) Total current assets NON-CURRENT ASSETS Investments accounted for using the equity method (Notes 4 and 10) Property, plant and equipment (Notes 4, 11 and 27) Right-of-use assets (Notes 4 and 12) Intangible assets (Notes 4, 13 and 27) Deferred tax assets (Notes 4 and 22) Other non-current assets (Notes 4 and 14) Total non-current assets TOTAL LIABILITIES AND EQUITY CURRENT LIABILITIES Short-term borrowings (Note 15) Short-term bills payable (Note 15) Contract liabilities - current (Notes 4, 20 and 27) Notes payable (Note 16) Accounts payable (Note 16) Accounts payable to related parties (Notes 16 and 27) Other payables (Note 17) Other payables to related parties (Notes 17 and 27) Current tax liabilities (Notes 4 and 22) Lease liabilities - current (Notes 4 and 12) Other current liabilities (Note 17) Total current liabilities NON-CURRENT LIABILITIES Deferred tax liabilities (Notes 4 and 22) Lease liabilities - non-current (Notes 4 and 12) Net defined benefit liabilities (Notes 4 and 18) Other non-current liabilities (Note 17) Total non-current liabilities Total liabilities EQUITY (Note 19) Ordinary shares Capital surplus Retained earnings Legal reserve Special reserve Unappropriated earnings Total retained earnings Other equity Total equity TOTAL		December 31, 2022		December 31, 2021
		Amount % $ 154,018 5 5,600 - 416 - 685,440 21 146,424 4 5,581 - 9,690 - 952,784 29 107,865 3 18,387 1 2,086,205 63 174,923 5 966,643 29 38,650 1 8,521 - 21,449 1 14,630 1 1,224,816 37 $ 3,311,021 100 $ 300,000 9 - - 129,154 4 78,300 2 528,522 16 66,622 2 172,999 5 45,874 2 25,621 1 10,711 - 585 - 1,358,388 41 78,784 2 28,115 1 49,797 2 2,429 - 159,125 5 1,517,513 46 762,300 23 61,023 2 674,678 20 68,264 2 262,141 8 1,005,083 30 (34,898) (1) 1,793,508 54 $ 3,311,021 100		Amount % $ 81,857 2 - - 14,256 - 706,917 21 63,689 2 2,291 - 15,332 1 1,061,190 31 74,149 2 17,895 1 2,037,576 60 272,325 8 995,638 29 8,166 - 13,716 1 45,777 1 21,265 1 1,356,887 40 $ 3,394,463 100 $ 375,830 11 90,000 3 53,953 2 84,738 2 527,055 16 68,820 2 171,840 5 50,016 1 55,122 2 4,527 - 427 - 1,482,328 44 92,342 3 3,713 - 78,730 2 2,845 - 177,630 5 1,659,958 49 762,300 22 60,924 2 667,215 20 68,264 2 214,713 6 950,192 28 (38,911) (1) 1,734,505 51 $ 3,394,463 100

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

Ta Yih Industrial Co., Ltd.

STANDALONE STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

OPERATING REVENUE (Notes 4, 20 and 27) OPERATING COSTS (Notes 9, 18, 21 and 27) GROSS PROFIT UNREALIZED GAIN ON TRANSACTIONS WITH ASSOCIATES REALIZED GAIN ON TRANSACTIONS WITH ASSOCIATES REALIZED GROSS PROFIT OPERATING EXPENSES (Notes 8, 18, 21 and 27) Selling and marketing expenses General and administrative expenses Research and development expenses Expected credit loss Total operating expenses PROFIT FROM OPERATIONS NON-OPERATING INCOME AND EXPENSES (Notes 21 and 27) Interest income Other income Other gains and losses Share of profit or loss of subsidiaries and associates Total non-operating income and expenses PROFIT BEFORE INCOME TAX INCOME TAX EXPENSE (BENEFIT) (Notes 4 and 22) NET PROFIT FOR THE YEAR OTHER COMPREHENSIVE INCOME (LOSS) Items that will not be reclassified subsequently to profit or loss: Remeasurement of defined benefit plans (Note 18)		2022 Amount % $ 4,746,405 100 4,151,023 88 595,382 12 (1,473) - 1,762 - 595,671 12 263,744 5 129,199 3 147,122 3 - - 540,065 11 55,606 1 293 - 43,631 1 87,932 2 (102,707) (2) 29,149 1 84,755 2 (4,069) - 88,824 2 14,756 -		2021
				Amount % $ 4,992,142 100 4,350,801 87 641,341 13 (2,200) - 2,645 - 641,786 13 224,238 5 134,216 3 154,030 3 2,038 - 514,522 11 127,264 2 100 - 59,041 1 (39,408) (1) (59,456) (1) (39,723) (1) 87,541 1 5,017 - 82,524 1 (9,866) - (Continued)

Ta Yih Industrial Co., Ltd.

STANDALONE STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

Income tax relating to items that will not be reclassified subsequently to profit or loss (Notes 4 and 22) Items that may be reclassified subsequently to profit or loss: Exchange differences on translating the financial statements of foreign operations Income tax relating to items that may be reclassified subsequently to profit or loss (Notes 4 and 22) Other comprehensive income (loss) for the year, net of income tax TOTAL COMPREHENSIVE INCOME FOR THE YEAR EARNINGS PER SHARE (New Taiwan dollars, Note 23) Basic Diluted		2022 Amount % $ (2,951) - 11,805 - 5,016 - (1,003) - 4,013 - 15,818 - $ 104,642 2 $ 1.17 $ 1.17		2021
				Amount % $ 1,973 - (7,893) - (1,810) - 362 - (1,448) - (9,341) - $ 73,183 1 $ 1.08 $ 1.08

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

(Concluded)

STANDALONE STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021 (In Thousands of New Taiwan Dollars, Except Dividends Per Share)

Ta Yih Industrial Co., Ltd.

BALANCE AT JANUARY 1, 2021 Appropriation of the 2020 earnings (Note 19) Legal reserve Cash dividends distributed by the Company - NT$1.3 per share Unclaimed cash dividends overdue transferred to capital surplus Net profit for the year ended December 31, 2021 Other comprehensive loss for the year ended December 31, 2021, net of income tax Total comprehensive income for the year ended December 31, 2021 BALANCE AT DECEMBER 31, 2021 Appropriation of the 2021 earnings (Note 19) Legal reserve Cash dividends distributed by the Company - NT$0.6 per share Unclaimed cash dividends overdue transferred to capital surplus Net profit for the year ended December 31, 2022 Other comprehensive income for the year ended December 31, 2022, net of income tax Total comprehensive income for the year ended December 31, 2022 BALANCE AT DECEMBER 31, 2022		Share Capital Shares Amount Capital Surplus 76,230 $ 762,300 $ 60,832 - - - - - - - - 92 - - - - - - - - - 76,230 762,300 60,924 - - - - - - - - 99 - - - - - - - - - 76,230 $ 762,300 $ 61,023		Retained Earnings		Other Equity Exchange Differences on Translating Foreign Operations $ (37,463) - - - - (1,448) (1,448) (38,911) - - - - 4,013 4,013 $ (34,898)	Total Equity $ 1,760,329 - (99,099) 92 82,524 (9,341) 73,183 1,734,505 - (45,738) 99 88,824 15,818 104,642 $ 1,793,508

		Shares 76,230 - - - - - - 76,230 - - - - - - 76,230		Legal Reserve Special Reserve Unappropriated Earnings $ 651,251 $ 68,264 $ 255,145 15,964 - (15,964) - - (99,099) - - - - - 82,524 - - (7,893) - - 74,631 667,215 68,264 214,713 7,463 - (7,463) - - (45,738) - - - - - 88,824 - - 11,805 - - 100,629 $ 674,678 $ 68,264 $ 262,141

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

Ta Yih Industrial Co., Ltd.

STANDALONE STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021 (In Thousands of New Taiwan Dollars)

CASH FLOWS FROM OPERATING ACTIVITIES Income before income tax Adjustments for: Depreciation expense Amortization expense Expected credit loss recognized on trade receivables Finance costs Interest income Share of profits of subsidiaries and associates Loss (gain) on disposal of property, plant and equipment, net Unrealized gain on transactions with associates Realized gain on transactions with associates Net gain on foreign currency exchange Changes in operating assets and liabilities: Notes receivable Accounts receivable Accounts receivable from related parties Other receivables Other receivables from related parties Inventories Prepayments Other current assets Contract liabilities Notes payable Accounts payable Accounts payable to related parties Other payables Other payables to related parties Other current liabilities Net defined benefit liabilities Other non-current liabilities Cash generated from operations Interest received Interest paid Income tax paid Net cash generated from operating activities CASH FLOWS FROM INVESTING ACTIVITIES Purchase of financial assets at amortized cost Payments for property, plant and equipment Proceeds from disposal of property, plant and equipment Increase in refundable deposits	2022 $ 84,755 181,886 10,127 - 5,356 (293) 102,707 (59) 1,473 (1,762) (8,912) 13,840 30,895 (76,436) (3,290) 5,523 108,406 (33,716) (492) 75,201 (6,438) 976 (5,393) 1,227 (4,142) 158 (14,177) (416) 467,004 293 (5,424) (18,616) 443,257 (5,600) (137,483) 80 (2,409)	2021 $ 87,541 167,259 10,368 2,038 3,451 (100) 59,456 43 2,200 (2,645) (10,869) (12,068) 63,555 175,527 29 4,446 (118,169) 31,845 11,057 (104,915) (10,750) (189,351) (1,812) (32,077) (16,336) (196) (6,192) 79 113,414 100 (3,386) (26,265) 83,863 - (129,161) - (6,421) (Continued)

Ta Yih Industrial Co., Ltd.

STANDALONE STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021 (In Thousands of New Taiwan Dollars)

Decrease in refundable deposits Payments for intangible assets Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from short-term borrowings Repayments of short-term borrowings Proceeds from short-term bills payable Repayments of short-term bills payable Repayment of the principal portion of lease liabilities Cash dividends Unclaimed cash dividends overdue transferred to capital surplus Net cash generated from (used in) financing activities NET INCREASE (DECREASE) IN CASH CASH AT THE BEGINNING OF THE YEAR CASH AT THE END OF THE YEAR	2022 $ 4,397 (4,932) (145,947) 3,913,065 (3,991,895) 260,000 (350,000) (10,680) (45,738) 99 (225,149) 72,161 81,857 $ 154,018	2021 $ 11,157 (5,160) (129,585) 2,885,588 (2,850,440) 640,000 (550,000) (5,866) (99,099) 92 20,275 (25,447) 107,304 $ 81,857

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

(Concluded)

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NOTES TO STANDALONE FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Ta Yih Industrial Co., Ltd.

1. GENERAL INFORMATION

Ta Yih Industrial Co., Ltd. (the “Company”) was incorporated in 1964. It was formerly known as Ta Yih Industrial Corp. and changed to its present name in 1976. The Company mainly sells, manufactures and processes automobile parts, motorcycle parts, railway vehicle parts, transportation machineries, industrial plastic parts, as well as invests in related industries.

The Company’s shares have been trading on the Taiwan Stock Exchange since October 1997.

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

2. APPROVAL OF FINANCIAL STATEMENTS

The standalone financial statements were approved by the Company’s board of directors on March 8, 2023.

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 “IFRSs”) endorsed and issued into effect by the Financial Supervisory Commission (FSC)

The initial application of the IFRSs endorsed and issued into effect by the FSC did not have material impact on the Company’s accounting policies:

b. The IFRSs endorsed by the FSC for application starting from 2023

Effective Date New IFRSs Announced by IASB

Amendments to IAS 1 “Disclosure of Accounting Policies” January 1, 2023 (Note 1) Amendments to IAS 8 “Definition of Accounting Estimates” January 1, 2023 (Note 2) Amendments to IAS 12 “Deferred Tax related to Assets and January 1, 2023 (Note 3) Liabilities arising from a Single Transaction”

Note 1: The amendments will be applied prospectively for annual reporting periods beginning on or after January 1, 2023.
Note 2: The amendments will be applicable to changes in accounting estimates and changes in accounting policies that occur on or after the beginning of the annual reporting period beginning on or after January 1, 2023.
Note 3: Except for deferred taxes that were recognized on January 1, 2022 for temporary differences associated with leases and decommissioning obligations, the amendments were applied prospectively to transactions that occur on or after January 1, 2022.
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The Company determined that as of the date the financial report was approved and authorized for issue, the above application of other standards and interpretations did not have material impacts on the financial position and financial performance of the Company.

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

Effective Date New IFRSs 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” Amendments to IFRS 16 “Leases Liability in a Sale and Leaseback” January 1, 2024 (Note 2) 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 1 “Classification of Liabilities as Current or January 1, 2024 Non-current” Amendments to IAS 1 “Non-current Liabilities with Covenants” January 1, 2024

Note 1: Unless stated otherwise, the above IFRSs are effective for annual reporting periods beginning on or after their respective effective dates.
Note 2: A seller-lessee shall apply the Amendments to IFRS 16 retrospectively to sale and leaseback transactions entered into after the date of initial application of IFRS 16.

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

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a. Statement of compliance

The standalone financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

b. Basis of preparation

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

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

1) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities;
2) Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and
3) Level 3 inputs are unobservable inputs for the asset or liability.
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When preparing the standalone financial statements, the Company 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 standalone financial statements to be the same as the amounts attributable to the owners of the Company in its consolidated financial statements, adjustments arising from the differences in accounting treatments between the standalone 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 related equity items, as appropriate, in the standalone financial statements.

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 unless the asset is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period.

Current liabilities include:

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

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

d. Foreign currencies

In preparing the standalone financial statements of the Company, transactions in currencies other than the Company’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.

Non-monetary items that are measured at historical cost in a foreign currency are translated using the exchange rate at the date of the transaction.

For the purposes of presenting the standalone financial statements, the investments of the Company’s foreign operations (including subsidiaries and associates in other countries that use currencies which are different from the Company) are translated into the New Taiwan dollar using exchange rates prevailing at the end of the reporting period. 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.

e. Inventories

Inventories consist of raw materials, supplies, finished goods and work in progress and are stated at the lower of cost or net realizable value. Inventory write-downs are made by item, except where it may be appropriate to group similar or related items. The net realizable value is the estimated selling price of

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inventories less all estimated costs of completion and costs necessary to make the sale. Inventories are recorded at the standard cost on the balance sheet date. The difference between actual costs and normal standard costs is allocated in proportion to inventory and operational costs on fiscal year-end, in order to approach the amount of weighted-average cost.

f. Investments in subsidiaries

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

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

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

The Company 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. Impairment loss is recognized when the carrying amount exceeds the recoverable amount. If the recoverable amount of the investment subsequently increases, the Company recognizes a reversal of the impairment loss; the adjusted post-reversal carrying amount should not exceed the carrying amount that would have been recognized (net of amortization or depreciation) had no impairment loss been recognized in prior years.

g. Investments in associates

An associate is an entity over which the Company has significant influence and which is neither a subsidiary nor an interest in a joint venture.

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

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

The entire carrying amount of an investment 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.

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

h. Property, plant and equipment

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

Property, plant and equipment in the course of construction are measured at cost less any recognized impairment loss. Cost includes professional fees and borrowing costs eligible for capitalization. Before that asset reaches its intended use are measured at the lower of cost or net realizable value, and any proceeds from selling those assets and the cost of those assets are recognized in profit or loss. Such assets are depreciated and classified to the appropriate categories of property, plant and equipment when completed and ready for their intended use.

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Except for freehold land which is not depreciated, the depreciation of property, plant and equipment is recognized using the straight-line method. Each significant part is depreciated separately. The estimated useful lives, residual values and depreciation methods are reviewed at the end of each reporting period, with the effects of any changes in 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.

i. Intangible assets
1) Intangible assets acquired separately

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

2) Derecognition of intangible assets

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

j. Impairment of property, plant and equipment, right-of-use assets, intangible assets and assets related to contract costs

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

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.

Before the Company recognizes an impairment loss from assets related to contract costs, any impairment loss on inventories related to the contract applicable under IFRS 15 shall be recognized in accordance with applicable standards. Then, impairment loss from the assets related to the contract costs is recognized to the extent that the carrying amount of the assets exceeds the remaining amount of consideration that the Company expects to receive in exchange for related goods or services less the costs which relate directly to providing those goods or services and which have not been recognized as expenses. The assets related to the contract costs are then included in the carrying amount of the cash-generating unit to which they belong for the purpose of evaluating impairment of that cash-generating unit.

When an impairment loss is subsequently reversed, the carrying amount of the corresponding asset, cash-generating unit or assets related to contract costs 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, cash-generating unit or assets related to contract costs in prior years. A reversal of an impairment loss is recognized in profit or loss.

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k. Financial instruments

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

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

1) Financial assets

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

a) Measurement categories

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

Financial assets at amortized cost

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

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

Subsequent to initial recognition, financial assets at amortized cost, including cash, financial assets at amortized cost - current, accounts receivable at amortized cost (including related parties), notes receivable, other receivables (including related parties), and refundable deposits (classified under other non-current assets), 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 assets, 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;
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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.
b) Impairment of financial assets

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

The Company always recognizes lifetime expected credit losses (ECLs) for accounts receivable. For all other financial instruments, the Company recognizes lifetime ECLs when there has been a significant increase in credit risk since initial recognition. If, on the other hand, the credit risk on a financial instrument has not increased significantly since initial recognition, the Company measures the loss allowance for that financial instrument at an amount equal to 12-month ECLs.

Expected credit losses reflect the weighted average of credit losses with the respective risks of 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.

For internal credit risk management purposes, the Company determines that the following situations indicate that a financial asset is in default (without taking into account any collateral held by the Company):

i. Internal or external information show that the debtor is unlikely to pay its creditors.
ii. When a financial asset is more than 365 days past due unless the Company has reasonable and corroborative information to support a more lagged default criterion.

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

c) Derecognition of financial assets

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

On derecognition of a financial asset at amortized cost in its entirety, the difference between the asset’s carrying amount and the sum of the consideration received and receivable is recognized in profit or loss.

2) Financial liabilities
a) Subsequent measurement

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

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b) Derecognition of financial liabilities

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

l. Revenue recognition

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

For contracts where the period between the date on which the Company transfers a promised good or service to a customer and the date on which the customer pays for that good or service is one year or less, the Company does not adjust the promised amount of consideration for the effects of a significant financing component.

1) Revenue from the sale of goods

Revenue from the sale of goods comes from sales of car lamps and molds. Sales of goods are recognized as revenue and accounts receivable when the goods are delivered to the customer’s specific location 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.

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

2) Royalty revenue

Royalty revenue is recognized on an accrual basis in accordance with the substance of the relevant agreement and provided that it is probable that the economic benefits will flow to the Company and that the amount of revenue can be measured reliably. Royalty arrangements that are based on sales are recognized with reference to the underlying arrangement.

m. Leases

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

The Company as lessee

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

Right-of-use assets are initially measured at cost, which comprises the initial measurement of lease liabilities adjusted for lease payments made at or before the commencement date, plus any initial 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. 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 Company 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 Company remeasures the lease liabilities with a corresponding adjustment to the right-of-use-assets. However, if the carrying amount of the right-of-use assets is reduced to zero, any remaining amount of the remeasurement is recognized in profit or loss. Lease liabilities are presented on a separate line in the balance sheets.

n. 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.

o. 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 in other income on a systematic basis over the periods in which the Company recognizes as expenses the related costs that the grants are intended 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.

p. 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.

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, past service cost, as well as gains and losses on settlements) 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, the effect of the changes to the asset ceiling and the return on plan assets (excluding interest), is recognized in other comprehensive income in the period in which it occurs. Remeasurement recognized in other comprehensive income is reflected immediately in retained earnings and will not be reclassified to

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profit or loss.

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

3) Other long-term employee benefits

Other long-term employee benefits are accounted for in the same way as the accounting required for defined benefit plans except that remeasurement is recognized in profit or loss.

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

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

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

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3) Current and deferred taxes

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. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

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

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised if the revisions affect only that period or in the period of the revisions and future periods if the revisions affect both current and future periods.

6. CASH

Cash on hand Checking accounts and demand deposits FINANCIAL ASSETS AT AMORTIZED COST - CURRENT Current Domestic investments Time deposits with original maturities of more than 3 months		December 31	December 31
		2022 2021 $ 505 $ 356 153,513 81,501 $ 154,018 $ 81,857 December 31
		2022 $ 5,600	2021 $ -

7. FINANCIAL ASSETS AT AMORTIZED COST - CURRENT

The range of interest rates for time deposits with original maturities of more than 3 months was approximately 0.425% per annum as of December 31, 2022.

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8. NOTES RECEIVABLE, ACCOUNTS RECEIVABLE (INCLUDING RELATED PARTIES), AND OTHER RECEIVABLES (INCLUDING RELATED PARTIES)

Notes receivable At amortized cost Gross carrying amount - operating Less: Allowance for impairment loss Accounts receivable At amortized cost Gross carrying amount Less: Allowance for impairment loss Accounts receivable from related parties At amortized cost Gross carrying amount Less: Allowance for impairment loss Other receivables Tariff refund receivables Others Other receivables from related party Royalty receivables Others		December 31	December 31
		2022 $ 435 19 $ 416 $ 691,198 5,758 $ 685,440 $ 148,178 1,754 $ 146,424 $ 635 4,946 $ 5,581 $ 9,530 160 $ 9,690	2021 $ 14,275 19 $ 14,256 $ 712,660 5,743 $ 706,917 $ 65,458 1,769 $ 63,689 $ 435 1,856 $ 2,291 $ 14,967 365 $ 15,332

The average credit period of sales of goods was 60 to 90 days. No interest was charged on accounts receivable.

The Company measures the loss allowance for trade receivables at an amount equal to lifetime ECLs. The expected credit losses on trade receivables are estimated using a provision matrix by reference to the past default records 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 Company’s historical credit loss experience does not show significantly different loss patterns for different customer segments, the provision for loss allowance based on past due status is not further distinguished according to the Company’s different customer base.

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

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

December 31, 2022

Expected credit loss rate Gross carrying amount Loss allowance (Lifetime ECL) Amortized cost December 31, 2021 Expected credit loss rate Gross carrying amount Loss allowance (Lifetime ECL) Amortized cost		No indication of default of debtor Not Past Due Up to 60 Days Individual identification 0.1% -0.06% 0.1%-100% 30%-100% $ 804,411 $ 23,037 $ 12,363 (516) (576) (6,439) $ 803,895 $ 22,461 $ 5,924 No indication of default of debtor Not Past Due Up to 60 Days Individual identification 0.1%-0.3% 0% 30%-100% $ 777,141 $ 1,801 $ 13,451 (2,288) - (5,243) $ 774,853 $ 1,801 $ 8,208	No indication of default of debtor Not Past Due Up to 60 Days Individual identification 0.1% -0.06% 0.1%-100% 30%-100% $ 804,411 $ 23,037 $ 12,363 (516) (576) (6,439) $ 803,895 $ 22,461 $ 5,924 No indication of default of debtor Not Past Due Up to 60 Days Individual identification 0.1%-0.3% 0% 30%-100% $ 777,141 $ 1,801 $ 13,451 (2,288) - (5,243) $ 774,853 $ 1,801 $ 8,208	Total $ 839,811 (7,531) $ 832,280 Total $ 792,393 (7,531) $ 784,862

		Not Past Due 0.1%-0.3% $ 777,141 (2,288) $ 774,853	Up to 60 Days 0% $ 1,801 - $ 1,801

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

Balance at January 1 Add: Net remeasurement of loss allowance Less: Amounts written off Balance at December 31		For the Year Ended December 31	For the Year Ended December 31
		2022 $ 7,531 - - $ 7,531	2021 $ 6,112 2,038 (619) $ 7,531

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9. INVENTORIES

Merchandise Finished goods Work in progress Raw materials		December 31	December 31
		2022 $ 38,668 521,470 119,236 273,410 $ 952,784	2021 $ 40,170 563,510 110,597 346,913 $ 1,061,190

The nature of the cost of goods sold is as follows:

Cost of inventories sold

	For the Year Ended December 31	For the Year Ended December 31
	2022 $ 4,151,023	2021 $ 4,350,801

10. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

Investments in subsidiaries Investments in associates a. Investments in subsidiaries Ta Yih International Investment Co., Ltd. (BVI)		December 31	December 31
		2022 2021 $ 815 $ 784 174,108 271,541 $ 174,923 $ 272,325 December 31
		2022 $ 815	2021 $ 784

As of December 31, 2022 and 2021, the Company’s percentages of ownership and voting rights in Ta Yih International Investment Co., Ltd. (BVI) were both 100%.

b. Investments in associates

Material associates Fuzhou Koito Ta Yih Automotive Lamp Co., Ltd.		December 31	December 31
		2022 $ 174,108	2021 $ 271,541

As of December 31, 2022, and 2021, The Company’s percentage of ownership and voting rights in Fuzhou Koito Ta Yih Automotive Lamp Co., Ltd. were both 49%.

The summarized financial information below represents amounts shown in the associates’ financial statements prepared in accordance with IFRSs adjusted by the Company for equity accounting purposes.

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Fuzhou Koito Ta Yih Automotive Lamp Co., Ltd.

Current assets Non-current assets Current liabilities Equity Proportion of the Company’s ownership Equity attributable to the Company Unrealized gain or loss with associates Carrying amount Operating revenue Net profit for the year Total comprehensive income for the year		December 31	December 31
		2022 2021 $ 1,503,436 $ 2,043,932 1,243,809 1,143,152 (2,383,636) (2,624,042) $ 363,609 $ 563,042 49% 49% $ 178,168 $ 275,890 (4,060) (4,349) $ 174,108 $ 271,541 For the Year Ended December 31
		2022 $ 1,627,297 $ (209,498) $ (209,498)	2021 $ 1,923,096 $ (121,231) $ (121,231)

Refer to Table 2 “Information on Investees” and Table 3 “Information on Investments in Mainland China” for the nature of activities, principal places of business and countries of incorporation of the associates.

11. PROPERTY, PLANT AND EQUIPMENT

Cost Balance at January 1, 2021 Additions Disposals Balance at December 31, 2021 Accumulated depreciation Balance at January 1, 2021 Depreciation expenses Disposals Balance at December 31, 2021 Carrying amount at December 31, 2021 Cost Balance at January 1,2022 Additions Disposals Balance at December 31,2022 Accumulated depreciation Balance at January 1,2022 Depreciation expenses Disposals Balance at December 31,2022 Carrying amount at December 31,2022	Land $ 601,050 - - $ 601,050 $ - - - $ - $ 601,050 $ 601,050 - - $ 601,050 $ - - - $ - $ 601,050	Buildings $ 258,515 1,481 - $ 259,996 $ 222,483 7,930 - $ 230,413 $ 29,583 $ 259,996 4,364 - $ 264,360 $ 230,413 7,481 - $ 237,894 $ 26,466	Machinery Equipment $ 1,091,010 72,119 (38,507) $ 1,124,622 $ 879,989 61,897 (38,480 ) $ 903,406 $ 221,216 $ 1,124,622 38,924 (24,683) $ 1,138,863 $ 903,406 57,236 (24,663) $ 935,979 $ 202,884	Molding Equipment Transportation Equipment $ 131,503 $ 17,583 46,644 - - - $ 178,147 $ 17,583 $ 26,007 $ 13,593 63,159 1,725 - - $ 89,166 $ 15,318 $ 88,981 $ 2,265 $ 178,147 $ 17,583 67,039 430 - - $ 245,186 $ 18,013 $ 89,166 $ 15,318 80,260 1,475 - - $ 169,426 $ 16,793 $ 75,760 $ 1,220	Other Equipment $ 297,158 19,009 (4,503) $ 311,664 $ 236,921 26,687 (4,487 ) $ 259,121 $ 52,543 $ 311,664 31,373 (1,544 ) $ 341,493 $ 259,121 24,652 (1,543) $ 282,230 $ 59,263	Total $ 2,396,819 139,253 (43,010) $ 2,493,062 $ 1,378,993 161,398 (42,967) $ 1,497,424 $ 995,638 $ 2,493,062 142,130 (26,227) $ 2,608,965 $ 1,497,424 171,104 (26,206 ) $ 1,642,322 $ 966,643

All property, plant and equipment are used by the Company.

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

Buildings Main buildings 40 - 60 years Factory and other buildings 5 - 40 years Machinery equipment 3 - 12 years Molding equipment 2 - 3 years Transportation equipment 5 years Other equipment 3 - 8 years

12. LEASE ARRANGEMENTS

a. Right-of-use assets

Carrying amount Building Office equipment Transportation equipment Additions to right-of-use assets Depreciation charge for right-of-use assets Buildings Office equipment Transportation equipment Lease liabilities Carrying amount Current Non-current		December 31	December 31
		2022 2021 $ 34,627 $ - 1,046 1,568 2,977 6,598 $ 38,650 $ 8,166 For the Year Ended December 31
		2022 2021 $ 42,186 $ 5,693 $ 6,111 $ - 522 522 4,149 5,339 $ 10,782 $ 5,861 December 31
		2022 $ 10,711 $ 28,115	2021 $ 4,527 $ 3,713

b. Lease liabilities

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Range of discount rate for lease liabilities was as follows:

Building Office equipment Transportation equipment	December 31
	2022 2021 1.25% - 1.45% 1.45% 1.05%-1.45% 1.18%-1.45%

c. Material leasing activities and terms

The Company leases company cars and office equipment with lease terms of 2 to 5 years. These arrangements do not contain renewal or purchase options.

The Company also leases land and buildings for the use of plants with lease terms of 5 years. The Company does not have bargain purchase options to acquire the leasehold buildings at the end of the lease terms. In addition, the Company is prohibited from subleasing or transferring all or any portion of the underlying assets without the lessor’s consent.

d. Other lease information

Expenses relating to short-term leases Expenses relating to low-value asset leases Total cash outflow for leases		For the Year Ended December 31	For the Year Ended December 31
		2022 $ 154 $ 122 $ (11,358)	2021 $ 67 $ 124 $ (6,181)

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

13. INTANGIBLE ASSETS

Cost Balance at January 1, 2021 Additions Balance at December 31, 2021 Accumulated amortization Balance at January 1, 2021 Amortization expense Balance at December 31, 2021 Carrying amount at December 31, 2021	Computer Software $ 29,390 5,160 $ 34,550 $ 10,866 10,268 $ 21,134 $ 13,416	Patents $ 785 - $ 785 $ 385 100 $ 485 $ 300	Total $ 30,175 5,160 $ 35,335 $ 11,251 10,368 $ 21,619 $ 13,716 (Continued)

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Cost Balance at January 1, 2022 Additions Balance at December 31, 2022 Accumulated amortization Balance at January 1, 2022 Amortization expense Balance at December 31, 2022 Carrying amount at December 31, 2022 The above other intangible assets are amortized follows: Computer software Patents	Computer Software Patents Total $ 34,550 $ 785 $ 35,335 4,932 - 4,932 $ 39,482 $ 785 $ 40,267 $ 21,134 $ 485 $ 21,619 10,027 100 10,127 $ 31,161 $ 585 $ 31,746 $ 8,321 $ 200 $ 8,521 (Concluded) on a straight-line basis over their estimated useful lives as 3 years 5 years

14. OTHER ASSETS

Current Input tax Payment on behalf of others Non-current Refundable deposits Prepayments for property, plant, and equipment		December 31	December 31
		2022 $ 18,252 135 $ 18,387 $ 7,577 7,053 $ 14,630	2021 $ 17,723 172 $ 17,895 $ 9,565 11,700 $ 21,265

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15. BORROWINGS

a. Short-term borrowings

Unsecured borrowings Bank unsecured loans		December 31	December 31
		2022 $ 300,000	2021 $ 375,830

The range of interest rates on bank loans were 1.4%-1.65% and 0.53%-0.95% per annum, as of December 31, 2022 and 2021, respectively.

b. Short-term bills payable

Commercial papers payable		December 31	December 31
		2022 $ -	2021 $ 90,000

The range of interest rates on commercial papers payable was 0.89%-0.9% per annum at December 31, 2021.

16. NOTES PAYABLE AND ACCOUNTS PAYABLE (INCLUDING RELATED PARTIES)

Both notes payable and accounts payable were generated from operating activities. The Company has financial risk management policies in place to ensure that all payables are paid within the pre-agreed credit terms.

17. OTHER LIABILITIES

Current Other payables Payables for salaries or bonuses Payables for molding equipment Payables for annual leave Payables for compensation of employees Payables for utilities expense Payables for inspection expense Others		December 31 2022 2021 $ 121,256 $ 115,304 9,357 16,394 19,539 18,589 2,036 2,689 5,062 4,136 2,673 2,199 13,076 12,529 $ 172,999 $ 171,840 (Continued)
		2022 $ 121,256 9,357 19,539 2,036 5,062 2,673 13,076 $ 172,999

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Other payables to related parties Payables for royalty Payables for molds Payables for design expense Others Other current liabilities Receipts under custody Non-current Other non-current liabilities Provision for employee benefits Guarantee deposits received		December 31	December 31
		2022 $ 43,933 1,323 106 512 $ 45,874 $ 585 $ 2,189 240 $ 2,429	2021 $ 49,129 614 - 273 $ 50,016 $ 427 $ 2,605 240 $ 2,845

(Concluded)

Provision for employee benefits is the estimate of long-term bonus for senior employees.

18. RETIREMENT BENEFIT PLANS

a. Defined contribution plans

The Company 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 Company in accordance with the Labor Standards Act is operated by the government of the Republic of China (ROC). Pension benefits are calculated on the basis of the length of service and average monthly salaries of the 6 months before retirement. The Company contributes amounts equal to 11% and 8% of total monthly salaries and wages to a pension fund administered by the pension fund monitoring committee and a manager pension fund administered by the manager pension fund managing committee. Pension contributions are deposited respectively in the Bank of Taiwan and Taiwan Business Bank in the committee’s name. Before the end of each year, the Company 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 Company 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 Company has no right to influence the investment policy and strategy.

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

Present value of defined benefit obligation Fair value of plan assets Net defined benefit liabilities		December 31	December 31
		2022 $ 259,563 (209,766) $ 49,797	2021 $ 279,214 (200,484) $ 78,730

Movements in net defined benefit liabilities were as follows:

Present Value of the Defined Benefit Obligation Balance at January 1, 2021 $ 318,954 Service cost Current service cost 2,645 Net interest expense (income) 1,595 Recognized in profit or loss 4,240 Remeasurement Return on plan assets (excluding amounts included in net interest) - Actuarial profit - changes in demographic assumptions 7,976 Actuarial profit - experience adjustments 4,700 Recognized in other comprehensive income 12,676 Contributions from the employer - Benefits paid (56,656) Balance at December 31, 2021 279,214 Service cost Current service cost 1,997 Net interest expense (income) 1,396 Recognized in profit or loss 3,393 Remeasurement Return on plan assets (excluding amounts included in net interest) - Actuarial loss - changes in demographic assumptions (10,080) Actuarial profit - experience adjustments 12,089 Recognized in other comprehensive income 2,009 Contributions from the employer - Benefits paid (25,053) Balance at December 31, 2022 $ 259,563	Fair Value of the Plan Assets $ (243,898) - (1,232) (1,232) (2,810) - - (2,810) (9,200) 56,656 (200,484) - (1,027) (1,027) (16,765) - - (16,765) (16,543) 25,053 $ (209,766)	Net Defined Benefit Liabilities (Assets) $ 75,056 2,645 363 3,008 (2,810) 7,976 4,700 9,866 (9,200) - 78,730 1,997 369 2,366 (16,765) (10,080) 12,089 (14,756) (16,543) - $ 49,797

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

Operating costs Selling and marketing expenses General and administrative expenses Research and development expenses		For the Year Ended December 31	For the Year Ended December 31
		2022 $ 1,574 9 293 490 $ 2,366	2021 $ 2,017 2 522 467 $ 3,008

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

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

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

Discount rate Expected rate of salary increase	December 31
	2022 2021 1.375% 0.500% 2.500% 2.000%

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

Discount rate 0.25% increase 0.25% decrease Expected rate of salary increase/decrease 0.25% increase 0.25% decrease		December 31	December 31
		2022 $ (6,183) $ 6,403 $ 6,221 $ (6,038)	2021 $ (7,108) $ 7,373 $ 7,139 $ (6,920)

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

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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	December 31
		2022 $ 4,920 9.7 years	2021 $ 9,792 10.3 years

19. EQUITY

a. Share capital

Number of shares authorized (in thousands) Shares authorized Number of shares issued and fully paid (in thousands) Ordinary shares Shares issued Ordinary shares	76,230
	$ 762,300
	76,230
	$ 762,300

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

b. Capital surplus

Issuance of ordinary shares Capital surplus from gain on disposal of assets Donations (dividends expired)		December 31	December 31
		2022 $ 56,330 4,142 551 $ 61,023	2021 $ 56,330 4,142 452 $ 60,924

Such capital surplus from issuance of ordinary shares and donations may be used to offset a deficit; in addition, when the Company has no deficit, such capital surplus may be distributed as cash dividends or transferred to share capital (limited to a certain percentage of the Company’s capital surplus and once a year). Capital surplus from gain on disposal of assets may only be used to offset a deficit.

c. Retained earnings and dividends policy

With due consideration of the future needs for funds and long-term financial plan, when the Company 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 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 Company’s board of directors as the basis for proposing a distribution plan, which should be resolved in the shareholders’ meeting for the distribution of dividends and bonuses to shareholders. The shareholders’ dividends shall not be lower than 50% of distributed retained earnings, and the cash dividends shall not be lower than 50% of the shareholders’ dividends. For the policies on the distribution of compensation of employees and remuneration of directors and supervisors before and after amendment, refer to Note 21(f) “Compensation of employees and remuneration of director and supervisors”.

Appropriation of earnings to the legal reserve shall be made until the legal reserve equals the Company’s paid-in capital. The legal reserve may be used to offset a deficit. If the Company has no deficit and the legal reserve has exceeded 25% of the Company’s paid-in capital, the excess may be

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transferred to capital or distributed in cash.

The appropriations of earnings for 2021 and 2020, which were approved in the shareholders’ meetings on June 21, 2022 and August 4, 2021, respectively, were as follows:

Legal reserve Cash dividends Cash dividends per share (NT$)		Appropriation of Earnings	Appropriation of Earnings
		For the Year Ended December 31
		2021 $ 7,463 $ 45,738 $ 0.6	2020 $ 15,964 $ 99,099 $ 1.3

The appropriations of earnings for 2022 were proposed by the Company’s board of directors on March 8, 2023. The appropriations were as follows:

	Appropriation of	Appropriation of
		Earnings
Legal reserve	$	10,062
Cash dividends	$	53,361
Cash dividends per share (NT$)	$	0.7

The appropriations of earnings for 2022 are subject to the resolution of the shareholders in their meeting.

d. Special reserve

Balance at December 31		For the Year Ended December 31	For the Year Ended December 31
		2022 $ 68,264	2021 $ 68,264

At the Group’s initial adoption of IFRS, the amount transferred to retained earnings was $159,287 thousand representing the increase in cumulative translation adjustment and unrealized revaluation increments of $19,849 thousand and $139,438 thousand, respectively; retained earnings decreased by $136,165 thousand due to increase in employee benefits - short-term accumulating compensated absences and employee benefits - defined benefit plan of $10,539 thousand and $125,626 thousand, respectively. Therefore, the increase in retained earnings of $23,122 thousand by adopting IFRS was recognized in special reserve. When there is subsequent use, disposal, or reclassification of the relevant assets, the Company may reverse and book for earnings distribution the corresponding proportion originally allocated to special reserve.

20. REVENUE

Revenue from contracts with customers Revenue from sale of goods		For the Year Ended December 31	For the Year Ended December 31
		2022 $ 4,746,405	2021 $ 4,992,142

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a. Contract information

Revenue from sale of goods

The Company’s primary products are car lamps and molds. Car lamps and molds are sold at their respective fixed amounts as agreed in the contracts.

b. Contract balances

Accounts receivable (including related parties) (Note 8) Contract liabilities - current Deferred revenue	December 31, 2022 $ 831,864 $ 129,154	December 31, 2021 $ 770,606 $ 53,953	January 1, 2021 $ 1,002,942
			$ 158,868

The changes in the balance of contract liabilities primarily resulted from the timing differences between the Company’s satisfaction of performance obligations and the respective customer’s payment.

Revenue recognized in the current year from the contract liabilities at the beginning of the year is as follows:

c.	From the contract liabilities at the beginning of the year Sale of goods Disaggregation of revenue Type of goods Car lamps Molds Others		For the Year Ended December 31	For the Year Ended December 31
			2022 2021 $ 48,360 $ 149,036 For the Year Ended December 31
			2022 $ 4,018,051 271,118 457,236 $ 4,746,405	2021 $ 3,998,845 451,606 541,691 $ 4,992,142

21. PROFIT BEFORE INCOME TAX

a. Interest income

Bank deposits		For the Year Ended December 31	For the Year Ended December 31
		2022 $ 293	2021 $ 100

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b. Other income

	For the Year Ended December 31	For the Year Ended December 31
	2022 2021 $ 35,330 $ 46,210 8,301 12,831 $ 43,631 $ 59,041 For the Year Ended December 31
2022 2021 $ (4,954) $ (3,327) (402) (124) 103,517 (15,989) (10,221) (15,174) 59 (43) (67) (4,751) $ 87,932 $ (39,408) For the Year Ended December 31
	2022 $ 171,104 10,782 10,127 $ 192,013 $ 167,646 14,240 $ 181,886 $ 2,804 7,323 $ 10,127	2021 $ 161,398 5,861 10,368 $ 177,627 $ 150,058 17,201 $ 167,259 $ 2,682 7,686 $ 10,368

c. Other gains and losses

d. Depreciation and amortization

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e. Employee benefits expense

Short-term benefits Salaries Directors’ remuneration Labor and health insurance Others Post-employment benefits Defined contribution plans Defined benefit plans (Note 18) Total employee benefits expense An analysis of employee benefits expense by function Operating costs Operating expenses		For the Year Ended December 31	For the Year Ended December 31
		2022 $ 519,202 940 54,250 24,312 598,704 22,340 2,366 24,706 $ 623,410 $ 435,116 188,294 $ 623,410	2021 $ 508,898 930 55,346 24,156 589,330 22,573 3,008 25,581 $ 614,911 $ 417,625 197,286 $ 614,911

f. Compensation of employees and remuneration of directors

According to the Articles of Incorporation of the Company, the Company accrued compensation of employees at the rates of no less than 1% of net profit after offsetting previous fiscal deficits, and before income tax, and compensation of employees. The compensation of employees for the years ended December 31, 2022 and 2021, which were approved by the Company’s board of directors on March 8, 2023 and March 25, 2022, respectively, were as follows:

Accrual rate

Compensation of employees Amount Compensation of employees - cash Remuneration of directors was not issued over the years.	For the Year Ended December 31
	2022 2021 1% 1% For the Year Ended December 31
	2022 2021 $ 1,152 $ 884

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

There was no difference between the actual amounts of compensation of employees paid and the amounts recognized in the standalone financial statements for the years ended December 31, 2021 and 2020.

Information on the compensation of employees resolved by the Company’s board of directors is

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available at the Market Observation Post System website of the Taiwan Stock Exchange.

g. Gains or losses on foreign currency exchange

Foreign exchange gains Foreign exchange losses		For the Year Ended December 31	For the Year Ended December 31
		2022 $ 134,145 (30,628) $ 103,517	2021 $ 29,262 (45,251) $ (15,989)

22. INCOME TAX

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 Adjustment for prior years Deferred tax In respect of the current year Income tax expense recognized in profit or loss		For the Year Ended December 31	For the Year Ended December 31
		2022 $ 15,291 1,071 (27,247) (10,885) 6,816 $ (4,069)	2021 $ 29,665 2,229 (14,619) 17,275 (12,258) $ 5,017

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

Profit before tax Income tax expense calculated at the statutory rate Adjustment items of income tax Temporary differences Deferred revenue Share of profit or loss of overseas associates accounted for using equity method Others Non-deductible expenses for tax purposes Income tax on unappropriated earnings Current taxable income Deferred income tax expense (income) Adjustments for prior years’ tax		For the Year Ended December 31	For the Year Ended December 31
		2022 $ 84,755 $ 16,951 (17,588) 20,541 (4,626) 13 1,071 16,362 6,816 (27,247) $ (4,069)	2021 $ 87,541 $ 17,508 3,403 11,891 (3,169) 32 2,229 31,894 (12,258) (14,619) $ 5,017

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b. Income tax recognized in other comprehensive income

Deferred tax In respect of the current year Remeasurement of defined benefit plans Exchange differences on translating foreign operations		For the Year Ended December 31	For the Year Ended December 31
		2022 $ (2,951) (1,003) $ (3,954)	2021 $ 1,973 362 $ 2,335

c. Current tax assets and liabilities

Current tax liabilities Income tax payable		December 31	December 31
		2022 $ 25,621	2021 $ 55,122

d. Deferred tax assets and liabilities

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

For the year ended December 31, 2022

Deferred Tax Assets Temporary differences Allowance for reduction of inventory to market Unrealized gain or loss with associates Long-term employee benefit liability Deferred revenue Defined benefit plans Payables for annual leave Exchange differences on translating the financial statements of foreign operations Deferred Tax Liabilities Temporary differences Unappropriated earnings of associates Unrealized exchange losses Land value tax	Opening Balance $ 2,569 870 521 17,588 15,746 3,717 4,766 $ 45,777 $ 15,398 208 76,736 $ 92,342	Recognized in Profit or Loss Recognized in Other Comprehensive Income $ - $ - (58) - (83) - (17,588) - (2,836) (2,951) 191 - - (1,003) $ (20,374) $ (3,954) $ (15,398) $ - 1,840 - - - $ (13,558) $ -	Closing Balance $ 2,569 812 438 - 9,959 3,908 3,763 $ 21,449 $ - 2,048 76,736 $ 78,784

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For the year ended December 31, 2021

Deferred Tax Assets Temporary differences Allowance for reduction of inventory to market Unrealized gain or loss with associates Long-term employee benefit liability Deferred revenue Defined benefit plans Payables for annual leave Unrealized exchange losses and gains Exchange differences on translating the financial statements of foreign operations Deferred Tax Liabilities Temporary differences Unappropriated earnings of associates Unrealized exchange losses Land value tax	Opening Balance $ 2,569 959 505 14,185 15,011 3,472 1,895 4,404 $ 43,000 $ 27,422 - 76,736 $ 104,158	Recognized in Profit or Loss Recognized in Other Comprehensive Income $ - $ - (89) - 16 - 3,403 - (1,238) 1,973 245 - (1,895) - - 362 $ 442 $ 2,335 $ (12,024) $ - 208 - - - $ (11,816) $ -	Closing Balance $ 2,569 870 521 17,588 15,746 3,717 - 4,766
			$ 45,777
			$ 15,398 208 76,736
			$ 92,342

e. Income tax assessments

The tax returns of the Company through 2020 have been assessed by the tax authorities.

23. EARNINGS PER SHARE

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

Net profit for the year		For the Year Ended December 31	For the Year Ended December 31
		2022 $ 88,824	2021 $ 82,524

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Unit: In Thousands of Shares

Weighted average number of ordinary shares used in computation of basic earnings per share Effect of potentially dilutive ordinary shares: 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
		2022 $ 76,230 38 $ 76,268	2021 $ 76,230 29 $ 76,259

Since the Company offered to settle the compensation paid to employees in cash or shares, the Company assumed that the entire amount of the compensation will be settled in shares and the resulting potential shares were included in the weighted average number of shares outstanding used in the computation of diluted earnings per share, as the effect is dilutive. Such dilutive effect of the potential shares is included in the computation of diluted earnings per share until the shareholders resolve the number of shares to be distributed to employees at their meeting in the following year.

24. CASH FLOW INFORMATION

a. Non-cash transactions

In addition to those disclosed in other notes, the Company entered into the following non-cash investing and financing activities that were not reflected in the consolidated statements of cash flows for the years ended December 31, 2022 and 2021:

Increase in property, plant and equipment Decrease in prepayments for equipment		For the Year Ended December 31	For the Year Ended December 31
		2022 $ 142,130 (4,647) $ 137,483	2021 $ 139,253 (10,092) $ 129,161

b. Changes in liabilities arising from financing activities

For the year ended December 31, 2022

Balance at January 1, 2022 Net cash flows from financing activities Non-cash changes New leases Disposal leases Effect of foreign currency exchange differences Balance at December 31, 2022	Short-term borrowings $ 375,830 (78,830) - - 3,000 $ 300,000	Lease liabilities $ 8,240 (10,680) 42,186 (920) - $ 38,826

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For the year ended December 31, 2021

Balance at January 1, 2021 Net cash flows from financing activities Non-cash changes New leases Effect of foreign currency exchange differences Balance at December 31, 2021	Short-term borrowings $ 342,400 35,148 - (1,718) $ 375,830	Lease liabilities $ 8,413 (5,866) 5,693 - $ 8,240

25. CAPITAL MANAGEMENT

The Company manages its capital to ensure that entities in the Company will be able to continue as going concerns while maximizing the return to stakeholders through the optimization of the debt and equity balance. The capital structure of the Company consists of net debt (borrowings offset by cash) and equity of the Company. The Company is not subject to any externally imposed capital requirements.

26. FINANCIAL INSTRUMENTS

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

The carrying amounts of the Company’s financial instruments that are not measured at fair value, such as cash, financial assets at amortized cost - current, accounts receivable (including related parties), refundable deposits (classified under other non-current assets), accounts payable (including related parties), short-term borrowings, short-term bills payable and guarantee deposits received (classified under other non-current liabilities) approximate their fair values.

b. Categories of financial instruments

Financial assets Financial assets at amortized cost (1) Financial liabilities Financial liabilities at amortized cost (2)	December 31
	2022 2021 $ 1,014,746 $ 893,907 1,192,557 1,368,539

1) The balances include financial assets at amortized cost, which comprise cash, financial assets at amortized cost - current, accounts receivable (including related parties), other receivables (including related parties), and refundable deposits (classified under other non-current assets).
2) The balances include financial liabilities at amortized cost, which comprise short-term borrowings, short-term bills payable, notes and accounts payable (including related parties), other payables (including related parties), and guarantee deposits received (classified under non-current liabilities).
c. Financial risk management objectives and policies

The Company’s major financial instruments include equity investments, accounts receivable, accounts

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payable, borrowings, short-term bills payable and lease liabilities.

The Company’s corporate treasury function provides services to the business, coordinates access to domestic and international financial markets, monitors and manages the financial risks relating to the operations of the Company through internal risk reports which analyze exposures by degree and magnitude of risks. These risks are market risk (including currency risk and interest rate risk), credit risk and liquidity risk.

1) Market risk

The Company’s activities exposed it primarily to the financial risks of changes in foreign currency exchange rates (see (a) below) and interest rates (see (b) below).

a) Foreign currency risk

The Company had foreign currency sales and purchases, which exposed the Company to foreign currency risk.

The carrying amounts of the Company’s foreign currency denominated monetary assets and monetary liabilities at the end of the reporting period are set out in Note 28.

Sensitivity analysis

The Company was mainly exposed to the USD.

The following table details the Company’s sensitivity to an increase and decrease of 1% in the functional currency against the relevant foreign currencies. The sensitivity analysis included only outstanding foreign currency denominated monetary items. A positive number below indicates an increase in pre-tax profit. For a 1% weakening of the functional currency against the relevant foreign currency, there would be an equal and opposite impact on pre-tax profit, and the balances below would be negative.

Profit or loss	USD Impact
	For the Year Ended December 31
	2022 2021 $ 3,135 $ 3,032

Exchange rate fluctuations are mainly attributable to the exposure on outstanding cash, accounts receivable, other receivables, short-term borrowings and accounts payable in foreign currency which were not hedged at the end of the reporting period.

In management’s opinion, the sensitivity analysis was unrepresentative of the inherent foreign exchange risk because the exposure at the end of the reporting period did not reflect the exposure during the period. Sales quoted in USD may change with the fluctuation of client orders.

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b) Interest rate risk

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

Fair value interest rate risk Financial assets Financial liabilities Cash flow interest rate risk Financial assets Financial liabilities	For the Year Ended December 31
	2022 2021 $ 5,600 $ - 28,115 93,713 147,375 76,952 300,000 375,830

Sensitivity analysis

For floating rate assets and liabilities, the analysis was prepared assuming the amount of each asset and liability outstanding at the end of the year was outstanding for the whole year. A 1% increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates.

If interest rates had been 1% higher and all other variables were held constant, the Company’s pre-tax profit for the years ended December 31, 2022 and 2021 would have decreased by $1,526 thousand and $2,989 thousand, respectively, which was mainly a result of variable-rate borrowings.

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

The Company’s credit risk primarily arose from sales of the top 3 clients, which contributed more than 10% of the operating revenue in the statements of comprehensive income. The total percentages of accounts receivable (include related parties) from the above clients for the years ended December 31, 2022 and 2021 were 69% and 68%, respectively.

3) Liquidity risk

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

The Company relies on bank borrowings as a significant source of liquidity. As of December 31, 2022 and 2021, the Company had available unutilized short-term bank loan facilities set out in (b) below.

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

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

To the extent that interest flows are at floating rates, the undiscounted amount was derived from the interest rate curve at the end of the year.

December 31, 2022

b)	Non-interest bearing liabilities Lease liabilities Variable interest rate liabilities December 31, 2021 Non-interest bearing liabilities Lease liabilities Variable interest rate liabilities Fixed interest rate liabilities Financing facilities Unsecured bank overdraft facilities Amount used Amount unused	Less than 1 Year 1+ Years $ 892,317 $ 240 11,133 28,689 300,074 - $ 1,203,524 $ 28,929 Less than 1 Year 1+ Years $ 902,469 $ 240 4,608 3,755 375,972 - 90,000 - $ 1,373,049 $ 3,995 December 31	Less than 1 Year 1+ Years $ 892,317 $ 240 11,133 28,689 300,074 - $ 1,203,524 $ 28,929 Less than 1 Year 1+ Years $ 902,469 $ 240 4,608 3,755 375,972 - 90,000 - $ 1,373,049 $ 3,995 December 31	Less than 1 Year 1+ Years $ 892,317 $ 240 11,133 28,689 300,074 - $ 1,203,524 $ 28,929 Less than 1 Year 1+ Years $ 902,469 $ 240 4,608 3,755 375,972 - 90,000 - $ 1,373,049 $ 3,995 December 31
			2022 $ 300,000 1,280,000 $ 1,580,000	2021 $ 465,830 1,114,170 $ 1,580,000

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27. TRANSACTIONS WITH RELATED PARTIES

Details of transactions between the Company and other related parties are disclosed below.

a. Related party name and category

Related Party Name

Related Party Category

Koito Manufacturing Co., Ltd. Investors with significant influence over the Company Fuzhou Koito Ta Yih Automotive Lamp Co., Ltd Associates Guangzhou Koito Automotive Lamp Co., Ltd. Subsidiary of Koito Manufacturing Co., Ltd. India Japan Lighting Private Limited Subsidiary of Koito Manufacturing Co., Ltd. PT. Indonesia Koito Subsidiary of Koito Manufacturing Co., Ltd. Thai Koito Company Limited Subsidiary of Koito Manufacturing Co., Ltd. Hubei Koito Automotive Lamp Co., Ltd. Subsidiary of Koito Manufacturing Co., Ltd. North American Lighting Inc. Subsidiary of Koito Manufacturing Co., Ltd. NAL DO BRASIL INDUSTRIA E COMERCIO DE Subsidiary of Koito Manufacturing Co., COMPONENTES DE ILUMINACAO LTDA Ltd. TYC Brother Industrial Co., Ltd. Substantive related party DBM Reflex of Taiwan Co., Limited Substantive related party Juoku Technology Co., Ltd. Substantive related party KUO CHI MIN Investment Co., Ltd. (Formerly known Substantive related party as Ta Yih Investment Co., Ltd.) Nai Yi Entertainment Company Ltd. Substantive related party Ta Yih Kenmos Auto Parts Co., Ltd. Substantive related party Ta Yih International Hotel Co., Ltd. Substantive related party

b. Sales of goods

Related Party Category/Name Investors with significant influence over the Company Koito Manufacturing Co., Ltd. Associates Fuzhou Koito Ta Yih Automotive Lamp Co., Ltd Subsidiary of Koito Manufacturing Co., Ltd. Substantive related party		For the Year Ended December 31	For the Year Ended December 31
		2022 $ 595,705 46,312 84,643 77 $ 726,737	2021 $ 730,847 95,694 21,137 337 $ 848,015

The prices of sales of goods with related parties did not have substantive difference compared to non-related parties, except the prices of sales of goods with associates were added based on the costs. The collection term of domestic sales with related parties is 90 days, the collection term of export sales with related parties apart from associates, according to the term of individual transaction, is 120 to 180 days, and the collection term does not have substantive difference compared to non-related parties.

The unrealized gains on sales with associates for the years ended December 31, 2022 and 2021 were $4,060 thousand and $4,349 thousand, respectively, and had been recognized as a reduction of

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investments accounted for using the equity method.

c. Purchases of goods

Related Party Category/Name Investors with significant influence over the Company Koito Manufacturing Co., Ltd. Associates Subsidiary of Koito Manufacturing Co., Ltd. Substantive related party		For the Year Ended December 31	For the Year Ended December 31
		2022 $ 195,402 42,505 3,426 8,067 $ 249,400	2021 $ 327,491 21,632 934 18,425 $ 368,482

The payment term and price of goods purchased do not have substantive difference between related and non-related parties. The payment term for related parties depends on individual transaction, which is normally 90 days, and does not have substantive difference from non-related parties.

d. Contract liabilities

December 31 Related Party Category/Name 2022 2021 Subsidiary of Koito Manufacturing Co., Ltd. $ 2,317 $ 7,288 Receivables from related parties (excluding loans to related parties) December 31 Line Item Related Party Category/Name 2022 2021 Accounts receivable Investors with significant influence over the Company Koito Manufacturing Co., Ltd. $ 99,599 $ 46,714 Associates Fuzhou Koito Ta Yih Automotive Lamp Co., Ltd 29,910 16,711 Subsidiary of Koito Manufacturing Co., Ltd. 18,669 1,976 Substantive related party - 57 148,178 65,458 Less: Allowance for impairment loss 1,754 1,769 $ 146,424 $ 63,689 Other receivables Associates Fuzhou Koito Ta Yih Automotive Lamp Co., Ltd $ 9,558 $ 14,411 Subsidiary of Koito Manufacturing Co., Ltd. 48 921 Substantive related party 84 - $ 9,690 $ 15,332		December 31	December 31
		2022 $ 99,599 29,910 18,669 - 148,178 1,754 $ 146,424 $ 9,558 48 84 $ 9,690	2021 $ 46,714 16,711 1,976 57 65,458 1,769 $ 63,689 $ 14,411 921 - $ 15,332

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

The outstanding trade receivables from related parties are unsecured.

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

Line Item Related Party Category/Name Accounts payable Investors with significant influence over the Company Koito Manufacturing Co., Ltd. Associates Subsidiary of Koito Manufacturing Co., Ltd. Substantive related party Other payable Investors with significant influence over the Company Koito Manufacturing Co., Ltd. Associates Substantive related party		December 31	December 31
		2022 $ 49,605 14,227 26 2,764 $ 66,622 $ 44,808 132 934 $ 45,874	2021 $ 55,216 7,653 - 5,951 $ 68,820 $ 49,906 110 - $ 50,016

The outstanding payables to related parties are unsecured.

g. Prepayments

Line Item Related Party Category Prepaid expenses (classified under prepayments) Investors with significant influence over the Company		December 31	December 31
		2022 $ 110	2021 $ 191

h. Acquisition of property, plant and equipment

Related Party Category / Name

Substantive related party

	Purchase Price
	For the Year Ended December 31
	2021 $ 880

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i. Acquisition of other assets (classified under intangible assets)

Related Party Category/Name Investors with significant influence over the Company Koito Manufacturing Co., Ltd.		Purchase Price
		For the Year Ended December 31
		2021 $ 518

The group acquired intangible assets $2,226 thousand from investors with significant influence Koito Manufacturing Co. by agent for the collecting and paying for the year ended December 31, 2021.

j. Lease arrangements

Related Party Category/Name Acquisition of right-of-use assets Substantive related party Ta Yih Kenmos Auto Parts Co., Ltd. Line Item Related Party Category/Name Lease liabilities Substantive related party Ta Yih Kenmos Auto Parts Co., Ltd. Line Item Related Party Category/Name Interest expense Substantive related party Ta Yih Kenmos Auto Parts Co., Ltd.		January 1 to December 31, 2022
		$ 40,738 December 31
		2022 $ 34,752 January 1 to December 31, 2022
		$ 314

The Company leased right-of-use of plant from Ta Yih Kenmos Auto Parts Co., Ltd. in April 2022. The lease term of the contract was 5 years; the rental is based on market prices and monthly payments as agreed.

k. Other transactions with related parties
1) Royalty expenses

The Company entered into a royalty expense contract with its investor with significant influence - Koito Manufacturing Co., Ltd on June 1, 1987, original contract period 8 years, in accordance with the provisions of the contract, if either party doesn’t give notice of termination of the original contract 6 months prior to the end of the period, extended every 3 years. The royalty expenses were $81,842 thousand and $84,962 thousand for the years ended December 31, 2022 and 2021, respectively, and had been recognized as operating costs and operating expenses.

49 -

2) Royalty revenue

The Company entered into a royalty revenue contract with its associate - Fuzhou Koito Ta Yih Automotive Lamp Co., Ltd. on December 26, 2016, original contract period 2 years, in accordance with the provisions of the contract, if either party doesn’t give notice of termination of the original contract 6 months prior to the end of the period, extended every 3 years. The royalty revenues were $30,153 thousand and $35,943 thousand for the years ended December 31, 2022 and 2021, respectively, and had been recognized as other income of non-operating income and expenses. According to the contract, 50% of the royalty revenue should be paid to its investor with significant influence - Koito Manufacturing Co., Ltd. which amounted to $10,221 thousand and $15,174 thousand for the years ended December 31, 2022 and 2021, respectively, and had been recognized as other losses, net of non-operating income and expenses.

The Company entered into a contract with subsidiary of Koito Manufacturing Co., Ltd - Hubei Koito Automotive Lamp Co., Ltd. from December 25, 2015 to December 24, 2020. The royalty revenue were $0 thousand and $331 thousand for the year ended December 31, 2022 and 2021, respectively, and had been recognized as other income of non-operating income and expenses.

The Company entered into a contract with subsidiary of Koito Manufacturing Co., Ltd - Guangzhou Koito Automotive Lamp Co., Ltd. on November 11, 2019. The contract period is one year, and it shall be automatically renewed for successive one year term thereafter until and unless either the Party provides the other Party within 3 months prior notification to expire or modify the contract. The royalty revenue was $5,177 thousand and $9,936 thousand for the years ended December 31, 2022, and 2021, respectively, and had been recognized as other income of non-operating income and expenses.

l. Remuneration of key management personnel

Short-term employee benefits Post-employment benefits		For the Year Ended December 31	For the Year Ended December 31
		2022 $ 9,443 130 $ 9,573	2021 $ 11,880 128 $ 12,008

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

50 -

28. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

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

December 31, 2022

		Foreign		Carrying
		Currency	Exchange Rate	Amount
Financial assets
Monetary items
USD	$	10,401	30.71 $	319,423
CNY		10,983	4.408	48,412
JPY		564,394	0.2324	131,165
Non-monetary items
Investments accounted for using the equity
method
CNY		40,406	4.409	178,168
USD		27	30.71	815
Financial liabilities
Monetary items
USD		193	30.71	5,936
CNY		5,732	4.408	25,267
JPY		242,889	0.2324	56,447
December 31, 2021
		Foreign		Carrying
		Currency	Exchange Rate	Amount
Financial assets
Monetary items
USD	$	12,295	27.690 $	340,540
CNY		12,740	4.355	55,481
JPY		225,896	0.2407	54,373
Non-monetary items
Investments accounted for using the equity
method
CNY		63,547	4.341	275,890
USD		28	27.680	784
Financial liabilities
Monetary items
USD		1,347	27.690	37,288
CNY		7,221	4.355	31,449
JPY		457,298	0.2407	110,072

The carrying amount of investments accounted for using the equity method does not contain the reduction of unrealized gains.

51 -

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

For the Year Ended December 31

Foreign Currency USD CNY JPY	2022 Exchange Rate Net Foreign Exchange Gains (Losses) 29.88 (USD:NTD) $ 98,303 4.42 (CNY:NTD) 99 0.2275 (JPY:NTD) 5,115 $ 103,517	2021
		Exchange Rate Net Foreign Exchange Gains (Losses) 27.92 (USD:NTD) $ (16,253) 4.34 (CNY:NTD) 535 0.2536 (JPY:NTD) (271) $ (15,989)

29. SEPARATELY DISCLOSED ITEMS

a. Information about significant transactions:
1) Financing provided to others (None)
2) Endorsements/guarantees provided (None)
3) Marketable securities held (excluding investments in subsidiaries, associates and joint ventures) (None)
4) Marketable securities acquired or disposed of at costs or prices of at least NT$300 million or 20% of the paid-in capital (None)
5) Acquisition of individual real estate at costs of at least NT$300 million or 20% of the paid-in capital (None)
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 1)
8) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital (None)
9) Trading in derivative instruments (None)
b. Information on investees (Table 2)
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 3)
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
52 -

losses (Table 4):

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 5)
53 -

TABLE 1

Ta Yih Industrial Co., Ltd. And Subsidiaries

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, 2022 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Buyer	Related Party	Relationship		Transaction Details	Transaction Details		Abnormal	Transaction	Notes/Accounts Receivable (Payable)	Notes/Accounts Receivable (Payable)	Note
			Purchase/ Sale	Amount	% of Total	Payment Terms	Unit Price	Payment Terms	Ending Balance	% of Total
The Company	Koito Manufacturing Co., Ltd.	Investors with significant influence over the Company	Sales Purchases	$ (595,705) 195,402	(13) 6	60 days 90 days	No significant differences No significant differences	No significant differences No significant differences	Accounts receivable $ 99,599 Accounts payable (49,605)	12 (7)

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TABLE 2

Ta Yih Industrial Co., Ltd. And Subsidiaries

INFORMATION ON INVESTEES FOR THE YEAR ENDED DECEMBER 31, 2022 (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, 2022	December 31, 2022	Net Income (Loss) of the Investee	Share of Profit (Loss)	Note
				December 31, 2022	December 31, 2021	Number of Shares	%	Carrying Amount
The Company	Ta Yih International Investment Co., Ltd.	Omar Hodge Building, Wickhams Cay I P.O. Box 362, Road Town, Tortola, British Virgin Islands	Investment	$ 1,367	$ 1,367	50,000	100	$ 815	$ (53)	$ (53)

Note: Information on investments in mainland China, refer to Table 3.

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TABLE 3

Ta Yih Industrial Co., Ltd. And Subsidiaries

INFORMATION ON INVESTMENTS IN MAINLAND CHINA FOR THE YEAR ENDED DECEMBER 31, 2022 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Investee Company	Main Businesses and Products	Paid-in Capital	Method of Investment	Method of Investment	Accumulated Outward Remittance for Investment from Taiwan as of December 31, 2021 (Note 5)		Remittan	ce of Funds	Accumulated Outward Remittance for Investment from Taiwan as of December 31, 2022	Net Income (Loss) of the Investee	% Ownership of Direct or Indirect Investment	Investment Gain (Loss) (Note 1)	Carrying Amount as of December 31, 2022 (Note 1)	Accumulated Repatriation of Investment Income as of December 31, 2022 (Note 4)
							Outward	Inward
Fuzhou Koito Ta Yih Automotive Lamp Co., Ltd	Import, export and sale of automobile lamps in mainland China	US $9 million (Note 2) (NT $ 276,390 thousand) (Note 3)	Entrusting Ta Yih International Investment Co., Ltd. which was established in third region to invest in mainland China. Items referred to Rule No. 84022220 issued by the Investment Commission,MOEA.		$ 42,470	$	-	$ -	$ 42,470	$ (209,498)	49	$ (102,654)	$ 174,108	$ 238,605

Accumulate	d Outward Remittanc Mainland China a December 31, 20	e for Investment in s of 22		Investment Amount Authorized by The Investment Commission, MOEA			Upper Li The	mit on the Amount of Investment Stipulated by Investment Commission, MOEA (Note 6)
$	42,470			US$4.41 million (Note 2) (NT$ 135,431 thousand) (Note 3)				$1,793,508×60%`＝`$ 1,076,105

Note 1 ： Amount was recognized based on the audited financial statements.

Note 2 ： On January 18, 1996, the Investment Commission, MOEA approved the investment of US$2.5 million (including cash investment of US$1.76 million and machinery investment of US$740,000) through the approval of the Rule No. 84022220. On February 20, 2001, according to the Rule No. 90003791, approved by the Investment Commission, MOEA, the Company entrusted Ta Yih Investment Co., Ltd. which was established in the third region to invest US$500,000 on machinery equipment. However, there was still US$150,000 left unpaid. Therefore, the amount of capital owned by Fuzhou Koito Ta Yih Automotive Lamp Co., Ltd was only US$2.85 million. However, at the end of November 2005, the Company transferred 51% of the investment to Koito Manufacturing Co., Ltd. In December 2007, Fuzhou Koito Ta Yih Automotive Lamp Co., Ltd resolved to issue share dividends from capital surplus of US$2.45 million , of which the investment amount belonged to the Company was US$2.45 million × 49% = US$1.205 million, and had been approved by the Investment Commission, MOEA on March 24, 2008. In August 2008, the Company applied for issuing share dividends from capital surplus of US$1.5 million, of which the amount of investment belonged to the company was US$1.5 million × 49% = US$735,000, and had been approved by the Investment Commission, MOEA on August 6, 2008. In May 2010, the Company applied for issuing share dividends from capital surplus of US$2.2 million, of which the amount of investment belonged to the Company was US$2.2 million × 49% = US$1.078 million. As of December 31, 2022, the paid-in capital of Fuzhou Koito Ta Yih Automotive Lamp Co., Ltd was US$9 million. The registration was completed in July 2010 and had been approved by the Investment Commission, MOEA on November 30, 2010.

Note 3 ： The amount in the table should be shown in NTD (exchange rate was 30.71 at reporting date).

Note 4 ： Inward cash dividends.

Note 5 ： The original amount of investment was NT$86,673 thousands. 51% equity of Fuzhou Koito Ta Yih Automotive Lamp Co., Ltd was sold for NT$44,203 thousands.

Note 6 ： The upper limit according to “Principle of Investment or Technical Cooperation in Mainland China” issued by the Investment Commission, MOEA on August 29, 2008.

56 -

TABLE 4

Ta Yih Industrial Co., Ltd. And Subsidiaries

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

FOR THE YEAR ENDED DECEMBER 31, 2022

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

Investee Company	Transaction Type	Purchase/Sale	Price	Transaction Details	Transaction Details	Notes/Accounts Receivable (Payable)	Notes/Accounts Receivable (Payable)	Unrealized Gain
		Amount		Payment Terms	Comparison with Normal Transactions	Ending Balance	%
Fuzhou Koito Ta Yih Automotive Lamp Co., Ltd	Sales Royalty revenue	$ 46,312 30,153	Cost plus pricing According to the contract	120 to 180 days Every 180 days.	90 days N/A	Accounts receivable $ 29,910 Other receivables 9,530	4 62	$ 1,473 -

57 -

TABLE 5

Ta Yih Industrial Co., Ltd.

INFORMATION OF MAJOR SHAREHOLDERS December 31, 2022

Name of Major Shareholder	Shares	Shares
	Number of Shares	Percentage of Ownership (%)
Koito Manufacturing Co., Ltd. Ta Wei Investment Co., Ltd.	24,774,750 20,797,622	32.50% 27.28%

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 by the Company as of the last business day for the current quarter. The share capital in the standalone 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 their shareholdings to a trust, the above information will be disclosed by the individual trustee who opened the trust account. For shareholders who declare insider shareholdings with ownership greater than 10% in accordance with the Securities 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 the Market Observation Post System website of the Taiwan Stock Exchange.
58 -

THE CONTENTS OF STATEMENTS OF MAJOR ACCOUNTING ITEMS

ITEM STATEMENT INDEX

MAJOR ACCOUNTING ITEMS IN ASSETS, LIABILITIES AND EQUITY

MAJOR ACCOUNTING ITEMS IN ASSETS, LIABILITIES AND EQUITY
STATEMENT OF CASH	1
STATEMENT OF FINANCIAL ASSETS AT AMORTIZED	2
COST
STATEMENT OF NOTES RECEIVABLE	3
STATEMENT OF ACCOUNTS RECEIVABLE	4
STATEMENT OF OTHER RECEIVABLES	5
STATEMENT OF INVENTORIES	6
STATEMENT OF PREPAYMENTS	7
STATEMENT OF OTHER CURRENT ASSETS	Note 14
STATEMENT OF CHANGES IN INVESTMENTS	8
ACCOUNTED FOR USING THE EQUITY METHOD
STATEMENT OF CHANGES IN PROPERTY, PLANT AND	Note 11
EQUIPMENT
STATEMENT OF CHANGES IN ACCUMULATED	Note 11
DEPRECIATION AND ACCUMULATED IMPAIRMENT
OF PROPERTY, PLANT AND EQUIPMENT
STATEMENT OF INTANGIBLE ASSET	Note 13
STATEMENT OF CHANGES IN RIGHT-OF-USE ASSETS	9
STATEMENT OF DEFERRED TAX ASSETS	Note 22
STATEMENT OF OTHER NON-CURRENT ASSETS	Note 14
STATEMENT OF SHORT-TERM BORROWINGS	10
STATEMENT OF SHORT-TERM BILLS PAYABLE	Note 15
STATEMENT OF NOTES PAYABLE	11
STATEMENT OF ACCOUNTS PAYABLE	12
STATEMENT OF OTHER PAYABLES	Note 17
STATEMENT OF OTHER CURRENT LIABILITIES	Note 17
STATEMENT OF LEASE LIABILITIES	13
STATEMENT OF DEFERRED INCOME TAX LIABILITIES	Note 22
STATEMENT OF OTHER NON-CURRENT LIABILITIES	Note 17
MAJOR ACCOUNTING ITEMS IN PROFIT OR LOSS
STATEMENT OF OPERATING REVENUES	14
STATEMENT OF OPERATING COSTS	15
STATEMENT OF OPERATING EXPENSES	16
STATEMENT OF OTHER GAINS AND LOSSES	Note 21
STATEMENT OF EMPLOYEE BENEFITS, DEPRECIATION	17
AND AMORTIZATION

59 -

STATEMENT 1

TA YIH INDUSTRIAL CO., LTD.

STATEMENT OF CASH DECEMBER 31, 2022 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Item Cash on hand and petty cash Cash in banks Checking accounts and demand deposits Foreign currency deposits (Note)	Amount $ 505 97,143 56,370
	$ 154,018

Note: Including the USD 1,129,492.18, JPY 55,959,442, RMB 1,064,883.38, THB 2.27 and EUR 121,808.48 (US1=NT$30.71, JPY1=NT$0.2324, RMB1=NT$4.408, THB1=NT$0.89 and EUR1=NT$32.72)

60 -

STATEMENT 2

TA YIH INDUSTRIAL CO., LTD.

STATEMENT OF FINANCIAL ASSETS AT AMORTIZED COST DECEMBER 31, 2022 (In Thousands of New Taiwan Dollars)

Name Interest Rate `（％）` Maturity Dates CURRENT Time deposits with original maturities of more than 3 months 0.425 2022.12.21- 2023.6.30	Amount $ 5,600

61 -

STATEMENT 3

TA YIH INDUSTRIAL CO., LTD.

STATEMENT OF NOTES RECEIVABLE DECEMBER 31, 2022 (In Thousands of New Taiwan Dollars)

Customer Name Company A Company B Others (Note) Less: Allowance for impairment loss	Amount $ 318 99 18
	435 19
	$ 416

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

62 -

STATEMENT 4

TA YIH INDUSTRIAL CO., LTD.

STATEMENT OF ACCOUNTS RECEIVABLE DECEMBER 31, 2022 (In Thousands of New Taiwan Dollars)

Customer Name Not from related third parties Company C Company D Company E Others (Note 1) Less: Allowance for impairment loss From related third parties Koito Manufacturing Co., Ltd. Fuzhou Koito Ta Yih Automotive Lamp Co., Ltd PT. Indonesia Koito Thai Koito Company Limited Less: Allowance for impairment loss	Amount $ 239,054 237,166 34,793 180,185
	691,198 5,758
	$ 685,440
	$ 99,599 29,910 18,443 226
	148,178 1,754
	$ 146,424

Note1: The amount of individual customer included in others does not exceed 5% of the account balance.

Note2: The amount of accounts receivable of aging schedule more than one year was $12,363 thousand.

63 -

STATEMENT 5

TA YIH INDUSTRIAL CO., LTD.

STATEMENT OF OTHER RECEIVABLES DECEMBER 31, 2022 (In Thousands of New Taiwan Dollars)

Customer Type Abstract Not from related third parties Tax refund receivables Custom duty refundable Others Receivables from other companies for defective products and advances From related parties Royalty receivables Royalty revenue Others-related parties Expenses for guidance and transportation	Amount $ 635 4,946
	$ 5,581
	$ 9,530 160
	$ 9,690

64 -

STATEMENT 6

TA YIH INDUSTRIAL CO., LTD.

STATEMENT OF INVENTORIES DECEMBER 31, 2022 (In Thousands of New Taiwan Dollars)

Item Raw materials Work in process Finished goods Merchandise		Amount	Amount
		Cost $ 273,410 119,236 521,470 38,668 $ 952,784	Net Realizable Value (Note) $ 277,387 127,688 657,746 44,090 $ 1,106,911

Note: Refer to Note 4 to the standalone financial statements.

65 -

STATEMENT 7

TA YIH INDUSTRIAL CO., LTD.

STATEMENT OF PREPAYMENTS DECEMBER 31, 2022 (In Thousands of New Taiwan Dollars)

Item Abstract Prepayments for inventories Prepayments for raw materials, merchandise, and molds. Prepayments for expenses Prepayments for insurance fees and software maintenance fees.	Amount $ 97,119 10,746
	$ 107,865

66 -

STATEMENT 8

TA YIH INDUSTRIAL CO., LTD.

STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD FOR THE YEAR ENDED DECEMBER 31, 2022

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

Name Investments in subsidiaries Ta Yih International Investment Co., Ltd. Investments in associates Fuzhou Koito Ta Yih Co., Ltd.	Balance at January 1, 2022	Balance at January 1, 2022	Increase (Note 2) Shares Amount Net o - $ - - 289 $ 289	Income (Loss) f the Investee Exchange differences on translating foreign operations (Note 1) $ (53) $ 84 (102,654) 4,932 $ (102,707) $ 5,016	Balance at December 31, 2022 Shares % of Ownership Amount 50,000 100 $ 815 - 49 174,108 $ 174,923	Net Value Collateral $ 815 None 178,168 None $ 178,983
	Shares 50,000 -	Amount $ 784 271,541 $ 272,325	Shares - -		Shares % of Ownership 50,000 100 - 49

Note1: The difference between exchange differences on translating foreign operations of $5,016 thousand and the standalone statements of changes in equity of $4,013 were due to adjustment of deferred tax assets recognized which amounted to $(1,003) thousand.

Note2: Unrealized gain on downstream transactions with investments in associates was increased by $289 thousand.

67 -

STATEMENT 9

TA YIH INDUSTRIAL CO., LTD.

STATEMENT OF CHANGES IN RIGHT-OF-USE ASSETS FOR THE YEAR ENDED DECEMBER 31, 2022 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Item Cost Balance at January 1, 2022 Increase Decrease Balance at December 31, 2022 Accumulated depreciation Balance at January 1, 2022 Increase Decrease Balance at December 31, 2022 Carrying amount at December 31, 2022	Buildings Transportation equipment $ - $ 15,232 40,738 1,448 - (5,117) $ 40,738 $ 11,563 $ - $ 8,634 6,111 4,149 - (4,197) $ 6,111 $ 8,586 $ 34,627 $ 2,977	Office equipment $ 2,743 - - $ 2,743 $ 1,175 522 - $ 1,697 $ 1,046	Total $ 17,975 42,186 (5,117) $ 55,044 $ 9,809 10,782 (4,197) $ 16,394 $ 38,650

68 -

STATEMENT 10

TA YIH INDUSTRIAL CO., LTD.

STATEMENT OF SHORT-TERM BORROWINGS DECEMBER 31, 2022 (In Thousands of New Taiwan Dollars)

Maturity Date Interest rate (%) Borrowings of unsecured loans Taishin Bank 2022.12 - 2023.01 1.65 Cathay United Bank 2022.12 - 2023.01 1.64 Yuanta Bank 2022.11 - 2023.01 1.40	Balance $ 100,000 100,000 100,000 $ 300,000	Credit Line Collater al $ 200,000 None 100,000 None 100,000 None $ 400,000

69 -

STATEMENT 11

TA YIH INDUSTRIAL CO., LTD.

STATEMENT OF NOTES PAYABLE DECEMBER 31, 2022 (In Thousands of New Taiwan Dollars)

Customer Name/Type Not from related third parties Company I Others (Note)	Amount $ 65,755 12,545
	$ 78,300

Note: The amount of individual vendor in others does not exceed 5% of the account balance

70 -

STATEMENT 12

TA YIH INDUSTRIAL CO., LTD.

STATEMENT OF ACCOUNTS PAYABLE DECEMBER 31, 2022

(In Thousands of New Taiwan Dollars)

Customer Name Not from related third parties Company J Company K Company L Others (Note) From related third parties Koito Manufacturing Co., Ltd. Fuzhou Koito Ta Yih Automotive Lamp Co., Ltd DBM Reflex of Taiwan Co., Limited Juoku Technology Co., Ltd. Nai Yi Entertainment Company Ltd. Ta Yih Kenmos Auto Parts Co., Ltd. Ta Yih International Hotel Co., Ltd. Thai Koito Company Limited	Amount $ 54,755 53,145 35,892 384,730
	$ 528,522
	$ 49,605 14,227 1,869 276 22 520 77 26
	$ 66,622

Note: The amount of individual vendor in others does not exceed 5% of the account balance.

71 -

STATEMENT 13

TA YIH INDUSTRIAL CO., LTD.

STATEMENT OF LEASE LIABILITIES DECEMBER 31, 2022 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Item Lease Term Discount Rate (%) Building 2021.04.01 - 2027.03.31 1.25 Office equipment 2019.10.01 - 2024.12.31 1.45 Transportation equipment 2019.02.25 - 2026.11.30 1.05 - 1.45	Balance, End of Year $ 34,752 1,070 3,004 $ 38,826

72 -

STATEMENT 14

TA YIH INDUSTRIAL CO., LTD.

STATEMENT OF OPERATING REVENUES FOR THE YEAR ENDED DECEMBER 31, 2022 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Item Unit Weight Car lamps Thousands of Pcs 17,323 Molds Pcs 347 Others (Note) Sales return and allowance	Amount $ 4,051,794 271,118 458,279 4,781,191 34,786 $ 4,746,405

Note: The amount of each item included in others does not exceed 10% of the account balance.

73 -

STATEMENT 15

TA YIH INDUSTRIAL CO., LTD.

STATEMENT OF OPERATING COSTS FOR THE YEAR ENDED DECEMBER 31, 2022 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Item
Raw materials, beginning of year

Raw materials purchased
Gain from price recovery of inventory
Raw materials sold
Transferred to manufacturing or operating
expenses
Scrapped
Raw materials, end of year

Raw materials used
Direct labor
Manufacturing expenses

Manufacturing cost
Work in process, beginning of year
Work in process, end of year

Cost of finished goods
Finished goods, beginning of year
Finished goods purchased
Other adjustments
Transferred to manufacturing or operating
expenses
Transferred to equipment
Scrapped
Provision for loss on inventories
Finished goods, end of year

Cost of production and marketing

Merchandise, beginning of year
Merchandise purchased
Merchandise, end of year
Transferred to manufacturing or operating
expenses
Other adjustments

Cost of merchandise sold

Cost of raw materials sold
Scrapped
Revenue from sale of scraps

Total

Amount
$ 346,913
2,425,985
910
345,147
24,513
796
273,410
2,129,942
228,017
639,220
2,997,179
110,597
119,236
2,988,540
563,510
732,320
6,594
8,376
41,531
12,737
910
521,470
3,692,752
40,170
142,546
38,668
165
39,897
103,986
345,147
13,533
4,395
$ 4,151,023

74 -

STATEMENT 16

TA YIH INDUSTRIAL CO., LTD.

STATEMENT OF OPERATING EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2022 (In Thousands of New Taiwan Dollars)

Item Selling Expenses Payroll expense $ 17,089 Export fee 187,093 Freight expense 17,545 Examination expense - Insurance expenses 1,407 Depreciation expenses - Miscellaneous fee 22,003 Others 18,607 $ 263,744	General and Administrative Expenses $ 56,732 - 25 - 4,714 13,164 15,336 39,228 $ 129,199	Research and Development Expenses $ 86,114 - 915 11,253 8,443 1,076 17,552 21,769 $ 147,122	Total $ 159,935 187,093 18,485 11,253 14,564 14,240 54,891 79,604 $ 540,065

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STATEMENT 17

TA YIH INDUSTRIAL CO., LTD.

STATEMENT OF EMPLOYEE BENEFITS, DEPRECIATION AND AMORTIZATION FOR THE YEAR ENDED DECEMBER 31, 2022 (In Thousands of New Taiwan Dollars)

Employee benefits Salaries Labor and health insurance Post-employment benefits Remuneration of directors Others Depreciation Amortization		For the Year Ended December 31, 2022 Classified as Operating Costs Classified as Operating Expenses Total $ 359,267 $ 159,935 $ 519,202 39,686 14,564 54,250 17,341 7,365 24,706 - 940 940 18,822 5,490 24,312 $ 435,116 $ 188,294 $ 623,410 $ 167,646 $ 14,240 $ 181,886 $ 2,804 $ 7,323 $ 10,127	For the Year Ended December 31, 2022 Classified as Operating Costs Classified as Operating Expenses Total $ 359,267 $ 159,935 $ 519,202 39,686 14,564 54,250 17,341 7,365 24,706 - 940 940 18,822 5,490 24,312 $ 435,116 $ 188,294 $ 623,410 $ 167,646 $ 14,240 $ 181,886 $ 2,804 $ 7,323 $ 10,127		For the Year Ended December 31, 2021	For the Year Ended December 31, 2021	For the Year Ended December 31, 2021
		Classified as Operating Costs $ 359,267 39,686 17,341 - 18,822 $ 435,116 $ 167,646 $ 2,804	Classified as Operating Expenses $ 159,935 14,564 7,365 940 5,490 $ 188,294 $ 14,240 $ 7,323		Classified as Operating Costs $ 342,511 39,474 17,430 - 18,210 $ 417,625 $ 150,058 $ 2,682	Classified as Operating Expenses $ 166,387 15,872 8,151 930 5,946 $ 197,286 $ 17,201 $ 7,686	Total $ 508,898 55,346 25,581 930 24,156 $ 614,911 $ 167,259 $ 10,368

Note:

As of December 31, 2022 and 2021, the Company had 857 and 849 employees, respectively, which included 7 non-employee directors for both years.
Additional disclosures are as follows:
(1) Average employee benefits for the year ended December 31, 2022 was NT$732 thousand (Total amount of employee benefits for the year ended December 31, 2022 less total amount of remuneration of directors for the year ended December 31, 2022/number of employees for the year ended December 31, 2022 less number of directors not serving concurrently as employees for the year ended December 31, 2022)

Average employee benefits for the year ended December 31, 2021 was NT$729 thousand (Total amount of employee benefits for the year ended December 31, 2021 less total amount of remuneration of directors for the year ended December 31, 2021/number of employees for the year ended December 31, 2021 less number of directors not serving concurrently as employees for the year ended December 31, 2021)

(2) Average salary for the year ended December 31, 2022 was NT$611 thousand (Total amount of salaries for the year ended December 31, 2022/number of employees for the year ended December 31, 2022 less number of directors not serving concurrently as employees for the year ended December 31, 2022)

Average salary for the year ended December 31, 2021 was NT$604 thousand (Total amount of salaries for the year ended December 31, 2021/number of employees for the year ended December 31, 2021 less number of directors not serving concurrently as employees for the year ended December 31, 2021)

(3) Change in average salary was 1% (Average salaries for the year ended December 31, 2022 less average salaries for the year ended December 31, 2021/average salaries for the year ended December 31, 2021)
The remuneration of the chairman is approved by the board of directors. The compensation policy for the chairman and managers of the Company is based on industry standards, taking into account individual performance, business performance and future risks.
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TA YIH — Audit Report / Information 2022

51845_rns_2022-11-10_2861e624-c90d-4290-a6af-d60024118c39.pdf

Ta Yih Industrial Co., Ltd.

INDEPENDENT AUDITORS’ REPORT

Opinion

Basis for Opinion

Key Audit Matters

Sales Revenue from Hub Warehouse

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

Auditors’ Responsibilities for the Audit of the Standalone Financial Statements

Notice to Readers

Ta Yih Industrial Co., Ltd.

STANDALONE BALANCE SHEETS DECEMBER 31, 2022 AND 2021 (In Thousands of New Taiwan Dollars)

Ta Yih Industrial Co., Ltd.

STANDALONE STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

Ta Yih Industrial Co., Ltd.

STANDALONE STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

Ta Yih Industrial Co., Ltd.

Ta Yih Industrial Co., Ltd.

STANDALONE STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021 (In Thousands of New Taiwan Dollars)

Ta Yih Industrial Co., Ltd.

STANDALONE STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021 (In Thousands of New Taiwan Dollars)

Ta Yih Industrial Co., Ltd.

1. GENERAL INFORMATION

2. APPROVAL OF FINANCIAL STATEMENTS

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

Effective Date New IFRSs Announced by IASB

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

k. Financial instruments

1) Financial assets

b) Derecognition of financial liabilities

2) Royalty revenue

m. Leases

The Company as lessee

n. Borrowing costs

2) Retirement benefits

3) Current and deferred taxes

5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

6. CASH

7. FINANCIAL ASSETS AT AMORTIZED COST - CURRENT

8. NOTES RECEIVABLE, ACCOUNTS RECEIVABLE (INCLUDING RELATED PARTIES), AND OTHER RECEIVABLES (INCLUDING RELATED PARTIES)

December 31, 2022

9. INVENTORIES

10. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

Fuzhou Koito Ta Yih Automotive Lamp Co., Ltd.

11. PROPERTY, PLANT AND EQUIPMENT

12. LEASE ARRANGEMENTS

b. Lease liabilities

c. Material leasing activities and terms

13. INTANGIBLE ASSETS

14. OTHER ASSETS

15. BORROWINGS

a. Short-term borrowings

16. NOTES PAYABLE AND ACCOUNTS PAYABLE (INCLUDING RELATED PARTIES)

17. OTHER LIABILITIES

18. RETIREMENT BENEFIT PLANS

a. Defined contribution plans

b. Defined benefit plans

19. EQUITY

a. Share capital

b. Capital surplus

c. Retained earnings and dividends policy

20. REVENUE

21. PROFIT BEFORE INCOME TAX

b. Other income

d. Depreciation and amortization

e. Employee benefits expense

f. Compensation of employees and remuneration of directors

Accrual rate

22. INCOME TAX

b. Income tax recognized in other comprehensive income

c. Current tax assets and liabilities

d. Deferred tax assets and liabilities

For the year ended December 31, 2021

23. EARNINGS PER SHARE

Shares

24. CASH FLOW INFORMATION

b. Changes in liabilities arising from financing activities

For the year ended December 31, 2021

TA YIH Audit Report / Information 2022