TA YIH — Audit Report / Information 2023

Nov 9, 2023

TA YIH INDUSTRIAL CO., LTD.

PARENT COMPANY ONLY FINANCIAL

STATEMENTS AND INDEPENDENT AUDITORS’

REPORT DECEMBER 31, 2023 AND 2022

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For the convenience of readers and for information purpose only, the auditors’ report and the accompanying financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. In the event of any discrepancy between the English version and the original Chinese version or any differences in the interpretation of the two versions, the Chinese-language auditors’ report and financial statements shall prevail.

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INDEPENDENT AUDITORS’ REPORT TRANSLATED FROM CHINESE

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

Opinion

We have audited the accompanying parent company only balance sheets of Ta Yih Industrial Co., Ltd. (the “Company”) as of December 31, 2023, and the related parent company only statements of comprehensive income, of changes in equity and of cash flows for the year then ended, and notes to the parent company only financial statements, including a summary of material accounting policies.

In our opinion, the accompanying parent company only financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2023, and its financial performance and its cash flows for the year then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for opinion

We conducted our audits in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and 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 parent company only 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.

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Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Company’s 2023 parent company only financial statements. These matters were addressed in the context of our audit of the parent company only financial statements as a whole and, in forming our opinion thereon, we do not provide a separate opinion on these matters.

Key audit matters for the Company’s 2023 parent company only financial statements are stated as follows:

Key audit matter: Cut-off of hub sales revenue

Description

Please refer to Notes 4(23) and 6(14) to the parent company only financial statements for the accounting policy and the details of sales revenue relating to this key audit matter, respectively. The hub sales revenue was $1,670,712 thousand for the year ended December 31, 2023, which accounted for 35% of the total operating revenue.

The Company mainly manufactures and sells automobile and locomotive lamps. The Company also sells its products to overseas markets and recognizes revenue upon acceptance of the goods by the customers (transfer of risks and rewards) if picked up from hub. The sales model of overseas markets depends on the delivery of goods from hub warehouse. The Company recognizes sales revenue based on movements of inventories contained in the statements or other information provided by the hub custodians. As there are numerous sales revenue transactions from hubs and the transaction amounts prior to and after the balance sheet date are significant to the financial statements. Thus, we considered the cut-off of hub sales revenue as the key audit matter of our 2023 annual audit.

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How our audit addressed the matter

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

1. We validated the effectiveness of the management’s controls in respect of the cut-off of sales revenue from hub warehouse.

2. We performed cut-off tests of hub sales revenue for a specific period prior to and after the balance sheet date, including verifying records of picking goods from hubs and confirming records of inventory movements are recorded in appropriate period.

3. We conducted physical count of inventory quantities held at hubs and agreed to accounting records.

Other matter – Scope of the audit

The financial statements of the Company as of and for the year ended December 31, 2022 were audited by other auditors whose report dated March 8, 2023 expressed an unmodified opinion on those statements.

Responsibilities of management and those charged with governance for the parent company only financial statements

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

In preparing the parent company only 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.

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

Auditors’ responsibilities for the audit of the parent company only financial

statements

Our objectives are to obtain reasonable assurance about whether the parent company only 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 parent company only financial statements.

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

1. Identify and assess the risks of material misstatement of the parent company only 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.

2. 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.

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1. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

2. 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 parent company only 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.

3. Evaluate the overall presentation, structure and content of the parent company only financial statements, including the disclosures, and whether the parent company only financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

4. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the parent company only 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.

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

Yeh, Fang-Ting

Independent Accountants

Tien, Chung-Yu

PricewaterhouseCoopers, Taiwan

Republic of China March 8, 2024

------------------------------------------------------------------------------------------------------------------------------The accompanying parent company only financial statements are not intended to present the financial position and results of operations and cash flows in accordance with accounting principles generally accepted in countries and jurisdictions other than the Republic of China. The standards, procedures and practices in the Republic of China governing the audit of such financial statements may differ from those generally accepted in countries and jurisdictions other than the Republic of China. Accordingly, the accompanying parent company only financial statements and independent auditors’ report are not intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic of China, and their applications in practice.

As the financial statements are the responsibility of the management, PricewaterhouseCoopers cannot accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.

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TA YIH INDUSTRIAL CO., LTD. PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2023 AND 2022

(Expressed in thousands of New Taiwan dollars)

Assets	Notes 6(1) 6(1)(2) 6(3) and 12 6(3) and 12 6(3), 7 and 12 7 5 and 6(4) 7 6(5) 6(6) 6(7) and 7 6(21) 6(23)	December 31, 2023 AMOUNT % $ 382,731 12 - - 9,086 - 682,672 20 96,952 3 26,912 1 3,441 - 1,084,652 32 28,908 1 28,191 1 2,343,545 70 7,618 - 912,720 27 45,308 2 5,035 - 25,237 1 9,541 - 7,794 - 1,013,253 30 $ 3,356,798 100	December 31, 2022	December 31, 2022
		AMOUNT $ 382,731 - 9,086 682,672 96,952 26,912 3,441 1,084,652 28,908 28,191 2,343,545 7,618 912,720 45,308 5,035 25,237 9,541 7,794 1,013,253 $ 3,356,798	AMOUNT $ 154,018 5,600 416 685,440 146,424 5,581 9,690 952,784 107,865 18,387 2,086,205 174,923 966,643 38,650 8,521 21,449 7,053 7,577 1,224,816 $ 3,311,021	%
Current assets 1100 Cash and cash equivalents 1136 Financial assets at amortized cost - current 1150 Notes receivable, net 1170 Accounts receivable, net 1180 Accounts receivable - related parties 1200 Other receivables 1210 Other receivables - related parties 130X Inventories 1410 Prepayments 1479 Other current assets 11XX Total current assets Non-current assets 1550 Investments accounted for under equity method 1600 Property, plant and equipment 1755 Right-of-use assets 1780 Intangible assets 1840 Deferred income tax assets 1915 Prepayments for equipment 1920 Guarantee deposits paid 15XX Total non-current assets 1XXX Total assets				5 - - 21 4 - - 29 3 1
				63
				6 29 1 - 1 - -
				37
				100

(Continued)

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TA YIH INDUSTRIAL CO., LTD. PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2023 AND 2022

(Expressed in thousands of New Taiwan dollars)

Liabilities and Equity

December 31, 2023 December 31, 2022 Notes AMOUNT % AMOUNT % 6(8) $ 210,000 6 $ 300,000 9 6(14) and 7 25,247 1 113,995 4 92,641 3 78,300 2 682,796 20 528,522 16 7 54,170 2 66,622 2 6(9) 187,763 6 172,999 5 7 46,553 1 45,874 1 6(21) 57,087 2 25,621 1 7 13,745 - 10,711 - 47,521 1 15,744 1 1,417,523 42 1,358,388 41 6(21) 76,736 2 78,784 2 7 28,041 1 28,115 1 6(10) 58,894 2 49,797 2 2,399 - 2,429 - 166,070 5 159,125 5 1,583,593 47 1,517,513 46 6(11) 762,300 23 762,300 23 6(12) 61,145 2 61,023 2 6(13) 684,741 20 674,678 20 68,264 2 68,264 2 231,885 7 262,141 8 ( 35,130) ( 1) ( 34,898) ( 1 ) 1,773,205 53 1,793,508 54 9 $ 3,356,798 100 $ 3,311,021 100

Current liabilities 2100 Short-term borrowings 2130 Contract liabilities - current 2150 Notes payable 2170 Accounts payable 2180 Accounts payable - related parties 2200 Other payables 2220 Other payables - related parties 2230 Current income tax liabilities 2280 Lease liabilities - current 2399 Other current liabilities 21XX Total current liabilities Non-current liabilities 2570 Deferred income tax liabilities 2580 Lease liabilities - non-current 2640 Net defined benefit liabilities - non- current 2670 Other non-current liabilities 25XX Total non-current liabilities 2XXX Total liabilities Equity Share capital 3110 Common stock 3200 Capital surplus Retained earnings 3310 Legal reserve 3320 Special reserve 3350 Unappropriated retained earnings 3400 Other equity interest 3XXX Total equity Significant contingent liabilities and unrecognized contract commitments 3X2X Total liabilities and equity

The accompanying notes are an integral part of these parent company only financial statements.

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TA YIH INDUSTRIAL CO., LTD. PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022

(Expressed in thousands of New Taiwan dollars, except for earnings per share amounts)

Items

Year ended December 31 2023 2022 Notes AMOUNT % AMOUNT % 6(14) and 7 $ 4,817,004 100 $ 4,746,405 100 6(4)(10)(19)(20) and 7 ( 4,103,898) ( 85) ( 4,151,023) ( 88) 713,106 15 595,382 12 6(5) ( 730) - ( 1,473) - 6(5) 1,047 - 1,762 - 713,423 15 595,671 12 6(10)(19)(20), 7 and 12 ( 188,649) ( 4) ( 263,744) ( 5) ( 153,692) ( 3) ( 129,199) ( 3) ( 172,268) ( 4) ( 147,122) ( 3) 2,171 - - - ( 512,438) ( 11) ( 540,065) ( 11) 200,985 4 55,606 1 6(2)(15) 5,079 - 293 - 6(16) and 7 41,036 1 43,631 1 6(7)(17), 7 and 12 14,320 - 93,288 2 6(7)(18) and 7 ( 5,997) - ( 5,356) - 6(5) ( 176,667) ( 3) ( 102,707) ( 2) ( 122,229) ( 2) 29,149 1 78,756 2 84,755 2 6(21) ( 36,346) ( 1) 4,069 - $ 42,410 1 $ 88,824 2 6(10) ($ 11,552) - $ 14,756 - 6(21) 2,310 - ( 2,951) - 6(5) ( 290) - 5,016 - 6(21) 58 - ( 1,003) - ($ 9,474) - $ 15,818 - $ 32,936 1 $ 104,642 2 6(22) $ 0.56 $ 1.17 $ 0.56 $ 1.17

4000 Operating revenue 5000 Operating costs 5900 Operating margin 5910 Unrealized gain on sales 5920 Realized gain on sales 5950 Net operating margin Operating expenses 6100 Selling expenses 6200 General and administrative expenses 6300 Research and development expenses 6450 Expected credit gains 6000 Total operating expenses 6900 Operating profit Non-operating income and expenses 7100 Interest income 7010 Other income 7020 Other gains and losses 7050 Finance costs 7070 Share of loss of subsidiaries, associates and joint ventures accounted for under equity method 7000 Total non-operating income and expenses 7900 Profit before income tax 7950 Income tax (expense) benefit 8200 Net profit for the year Other comprehensive income (loss) Components of other comprehensive income (loss) that will not be reclassified to profit or loss 8311 Actuarial (losses) gains on defined benefit plans 8349 Income tax related to components of other comprehensive income (loss) that will not be reclassified to profit or loss Components of other comprehensive income (loss) that will be reclassified to profit or loss 8361 Financial statements translation differences of foreign operations 8399 Income tax related to components of other comprehensive income (loss) that will be reclassified to profit or loss 8300 Other comprehensive (loss) income for the year 8500 Total comprehensive income for the year Earnings per share (in dollars) 9750 Basic 9850 Diluted

The accompanying notes are an integral part of these parent company only financial statements.

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TA YIH INDUSTRIAL CO., LTD. PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022

(Expressed in thousands of New Taiwan dollars)

For the year ended December 31, 2022 Balance at January 1, 2022 Net income Other comprehensive income Total comprehensive income Distribution of 2021 net income: Legel reserve Cash dividends Unclaimed cash dividends overdue transferred to capital surplus Balance at December 31, 2022 For the year ended December 31, 2023 Balance at January 1, 2023 Net income Other comprehensive loss Total comprehensive income (loss) Distribution of 2022 net income: Legel reserve Cash dividends Unclaimed cash dividends overdue transferred to capital surplus Balance at December 31, 2023	Notes		Share capital - common stock			Capital Surplus	Capital Surplus					Retained Earnings	Retained Earnings		Other equity interest		Total
					Share premium	Gain on disposal of assets			Donated assets		Legal reserve		Special reserve	Unappropriated retained earnings	Financial statements translation differences of foreign operations
	6(13) 6(13)		$ 762,300 - - - - - - $ 762,300 $ 762,300 - - - - - - $ 762,300		$ 56,330 - - - - - - $ 56,330 $ 56,330 - - - - - - $ 56,330		$ 4,142 - - - - - - $ 4,142 $ 4,142 - - - - - - $ 4,142		$ 452 - - - - - 99 $ 551 $ 551 - - - - - 122 $ 673		$ 667,215 - - - 7,463 - - $ 674,678 $ 674,678 - - - 10,063 - - $ 684,741		$ 68,264 - - - - - - $ 68,264 $ 68,264 - - - - - - $ 68,264	$ 214,713 88,824 11,805 100,629 ( 7,463 ) ( 45,738 ) - $ 262,141 $ 262,141 42,410 ( 9,242 ) 33,168 ( 10,063 ) ( 53,361 ) - $ 231,885	($ 38,911 ) - 4,013 4,013 - - - ($ 34,898 ) ($ 34,898 ) - ( 232 ) ( 232 ) - - - ($ 35,130 )	$ 1,734,505 88,824 15,818 104,642 - ( 45,738 ) 99 $ 1,793,508 $ 1,793,508 42,410 ( 9,474 ) 32,936 - ( 53,361 ) 122 $ 1,773,205

The accompanying notes are an integral part of these parent company only financial statements.

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TA YIH INDUSTRIAL CO., LTD. PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax Adjustments Adjustments to reconcile profit (loss) Expected credit gains Provision for inventory market price decline Share of profit of subsidiaries, associates and joint ventures accounted for under equity method (including (realized) unrealized gain on sales) Depreciation expense Net loss (gain) on disposal of property, plant and equipment Gain from lease modification Amortization expense Interest income Finance costs Net loss (gain) on foreign currency exchange Changes in operating assets and liabilities Changes in operating assets Notes receivable Accounts receivable Accounts receivable - related parties Other receivables Other receivables - related parties Inventories Prepayments Other current assets Changes in operating liabilities Contract liabilities - current Notes payable Accounts payable Accounts payable - related partie Other payables Other payables - related parties Other current liabilities Net defined benefit liabilities - non-current Other non-current liabilities Cash inflow generated from operations Interest received Interest paid Income tax paid Net cash flows from operating activities

YearendedDecember 31 Notes 2023 2022 $ 78,756 $ 84,755 12 ( 2,171 ) - 6(4) 2,476 - 6(5) 176,350 102,418 6(6)(7)(19) 146,431 181,886 6(17) 404 ( 59 ) 6(7)(17) ( 23 ) - 6(19) 6,390 10,127 6(15) ( 5,079 ) ( 293 ) 6(18) 5,997 5,356 15,250 ( 8,912 ) ( 8,662 ) 13,840 ( 9,504 ) 30,895 45,348 ( 76,436 ) ( 21,331 ) ( 3,290 ) 6,273 5,523 ( 172,205 ) 108,406 78,957 ( 33,716 ) ( 9,804 ) ( 492 ) ( 88,748 ) 60,042 14,341 ( 6,438 ) 155,628 976 ( 10,521 ) ( 5,393 ) 14,732 1,227 679 ( 4,142 ) 31,777 15,317 ( 2,455 ) ( 14,177 ) ( 30 ) ( 416 ) 449,256 467,004 5,079 293 ( 5,965 ) ( 5,424 ) ( 8,348 ) ( 18,616 ) 440,022 443,257

(Continued)

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TA YIH INDUSTRIAL CO., LTD. PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM INVESTING ACTIVITIES Decrease (Increase) in financial assets at amortized cost - current Acquisition of investments accounted for under equity method Cash paid for acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Acquisition of intangible assets (Increase) decrease in guarantee deposits paid Net cash flows used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Decrease in short-term borrowings Decrease in short-term notes and bills payable Payments of lease liabilities Payment of cash dividends Unclaimed cash dividends overdue transferred to capital surplus Net cash flows used in financing activities Net increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year

YearendedDecember 31 Notes 2023 2022 $ 5,600 ($ 5,600 ) 6(5) ( 9,335 ) - 6(23) ( 44,014 ) ( 137,483 ) - 80 ( 2,904 ) ( 4,932 ) ( 217 ) 1,988 ( 50,870 ) ( 145,947 ) 6(24) ( 90,000 ) ( 78,830 ) 6(24) - ( 90,000 ) 6(24) ( 17,200 ) ( 10,680 ) 6(13) ( 53,361 ) ( 45,738 ) 122 99 ( 160,439 ) ( 225,149 ) 228,713 72,161 6(1) 154,018 81,857 6(1) $ 382,731 $ 154,018

The accompanying notes are an integral part of these parent company only financial statements.

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TA YIH INDUSTRIAL CO., LTD. NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

1. History and Organization

(1)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.

• (2)The Company’s shares have been listed on the Taiwan Stock Exchange since October 1997.

• The Date of Authorization for Issuance of the Financial Statements and Procedures for Authorization

These parent company only financial statements were authorized for issuance by the Board of Directors on March 8, 2024.

3. Application of New Standards, Amendments and Interpretations

(1) Effect of the adoption of new issuances of or amendments to International Financial Reporting Standards (“IFRS[®] ”) Accounting Standards that came into effect as endorsed by the Financial Supervisory Commission (“FSC”)

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

2023 are as follows:
New Standards,Interpretations and Amendments	Effective date by International Accounting Standards Board (“IASB”)
Amendments to IAS 1, ‘Disclosure of accounting policies’ Amendments to IAS 8, ‘Definition of accounting estimates’ Amendments to IAS 12, ‘Deferred tax related to assets and liabilities arising from a single transaction’ Amendments to IAS 12, ‘International tax reform - pillar two model rules’	January 1, 2023 January 1, 2023 January 1, 2023 May 23, 2023

The above standards and interpretations have no significant impact to the Company’s financial condition and financial performance based on the Company’s assessment.

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(2) Effect of new issuances of or amendments to IFRS Accounting Standards as endorsed by the FSC

but not yet adopted by the Company

New standards, interpretations and amendments endorsed by the FSC and became effective from 2024 are as follows:

New Standards, Interpretations and Amendments Effective date by IASB Amendments to IFRS 16, ‘Lease liability in a sale and leaseback’ January 1, 2024 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 Amendments to IAS 7 and IFRS 7, ‘Supplier finance arrangements’ January 1, 2024

The above standards and interpretations have no significant impact to the Company’s financial condition and financial performance based on the Company’s assessment.

(3) IFRS Accounting Standards issued by IASB but not yet endorsed by the FSC

New standards, interpretations and amendments issued by IASB but not yet included in the IFRSs

Accounting Standards as endorsed by the FSC are as follows:

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New Standards, Interpretations and Amendments Effective date by IASB
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Accounting Standards as endorsed by the FSC are as follows: New Standards,Interpretations andAmendments	Effective date byIASB
Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets	To be determined by
between an investor and its associate or joint venture’	IASB
IFRS 17, ‘Insurance contracts’	January 1, 2023
Amendments to IFRS 17, ‘Insurance contracts’	January 1, 2023
Amendment to IFRS 17, ‘Initial application of IFRS 17 and IFRS 9 –	January 1, 2023
comparative information’
Amendments to IAS 21, ‘Lack of exchangeability’	January 1, 2025

The above standards and interpretations have no significant impact to the Company’s financial condition and financial performance based on the Company’s assessment.

4. Summary of Material Accounting Policies

The principal accounting policies applied in the preparation of these parent company only financial statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

(1) Compliance statement

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

(2) Basis of preparation

• A. Except for the defined benefit liabilities recognized based on the net amount of pension fund assets less present value of defined benefit obligation, the parent company only financial statements have been prepared under the historical cost convention.

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• B. The preparation of financial statements in conformity with International Financial Reporting Standards, International Accounting Standards, IFRIC[®] Interpretations, and SIC[®] Interpretations that came into effect as endorsed by the FSC (collectively referred herein as the “IFRSs”) requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Company’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the parent company only financial statements are disclosed in Note 5, ‘Critical accounting judgements, estimates and key sources of assumption uncertainty’.

• (3) Foreign currency translation

• Items included in the financial statements of each of the Company’s entities are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The parent company only financial statements are presented in New Taiwan dollars, which is the Company’s functional and the Company’s presentation currency.

• A. Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions are recognized in profit or loss in the period in which they arise.

• B. Monetary assets and liabilities denominated in foreign currencies at the period end are retranslated at the exchange rates prevailing at the balance sheet date. Exchange differences arising upon re-translation at the balance sheet date are recognized in profit or loss.

• C. Non-monetary assets and liabilities denominated in foreign currencies held at fair value through profit or loss are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognized in profit or loss. Non-monetary assets and liabilities denominated in foreign currencies held at fair value through other comprehensive income are retranslated at the exchange rates prevailing at the balance sheet date; their translation differences are recognized in other comprehensive income. However, non-monetary assets and liabilities denominated in foreign currencies that are not measured at fair value are translated using the historical exchange rates at the dates of the initial transactions.

• D. All foreign exchange gains and losses are presented in the statement of comprehensive income within “Other gains and losses”.

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(4) Classification of current and non-current items

• A. Assets that meet one of the following criteria are classified as current assets; otherwise they are classified as non-current assets:

• (a) Assets arising from operating activities that are expected to be realized, or are intended to be sold or consumed within the normal operating cycle;

• (b)Assets held mainly for trading purposes;

• (c) Assets that are expected to be realized within twelve months from the balance sheet date;

• (d)Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are to be exchanged or used to settle liabilities more than twelve months after the balance sheet date.

• B. Liabilities that meet one of the following criteria are classified as current liabilities; otherwise they are classified as non-current liabilities:

• (a) Liabilities that are expected to be settled within the normal operating cycle;

• (b)Liabilities arising mainly from trading activities;

• (c) Liabilities that are to be settled within twelve months from the balance sheet date;

• (d)Liabilities for which the repayment date cannot be extended unconditionally to more than twelve months after the balance sheet date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

(5) Cash equivalents

Cash equivalents refer to short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Time deposits that meet the definition above and are held for the purpose of meeting short-term cash commitments in operations are classified as cash equivalents.

(6) Financial assets at amortized cost

• A. Financial assets at amortized cost are those that meet all the following criteria:

• (a) The objective of the Company’s business model is achieved by collecting contractual cash flows.

• (b)The assets’ contractual cash flows represent solely payments of principal and interest.

• B. On a regular way purchase or sale basis, financial assets at amortized cost are recognized and derecognized using trade date accounting.

• C. At initial recognition, the Company measures the financial assets at fair value plus transaction costs. Interest income from these financial assets is included in finance income using the effective interest method. A gain or loss is recognized in profit or loss when the asset is derecognized or impaired.

• D. The Company’s time deposits which do not fall under cash equivalents are those with a short maturity period and are measured at initial investment amount as the effect of discounting is immaterial.

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(7) Accounts and notes receivable

• A. Accounts and notes receivable entitle the Company a legal right to receive consideration in exchange for transferred goods or rendered services.

• B. The short-term accounts and notes receivable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

• (8) Impairment of financial assets

• For financial assets at amortized cost at each reporting date, the Company recognizes the impairment provision for 12 months expected credit losses if there has not been a significant increase in credit risk since initial recognition or recognizes the impairment provision for the lifetime expected credit losses (ECLs) if such credit risk has increased since initial recognition after taking into consideration all reasonable and verifiable information that includes forecasts. On the other hand, for accounts receivable that do not contain a significant financing component, the Company recognizes the impairment provision for lifetime ECLs.

(9) Derecognition of financial assets

The Company derecognizes a financial asset when the contractual rights to receive the cash flows from the financial asset expire.

(10) Inventories

Inventories consist of raw materials, supplies, finished goods and work in progress and are stated at the lower of cost and net realizable value. Cost is determined using the weighted-average method. 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 financial year-end, in order to approach the amount of weighted-average cost. The cost of finished goods and work in progress comprises raw materials, direct labor, other direct costs and related production overheads (allocated based on normal operating capacity). It excludes borrowing costs. The item by item approach is used in applying the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and applicable variable selling expenses. When the cost of inventories exceeds net realizable value, the amount of any write-down of inventories is recognized as cost of sales during the period; and the amount of any reversal of inventory write-down is recognized as a reduction in cost of sales during the period.

(11) Investments accounted for under equity method / subsidiaries and associates

• A. Subsidiaries are all entities (including structured entities) controlled by the Company. The Company controls an entity when the Company is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.

~18~

• B. Unrealized gains or losses resulting from inter-company transactions with subsidiaries are eliminated. The accounting policies of the subsidiaries have been adjusted where necessary to ensure consistency with the policies adopted by the Company.

• C. After acquisition of subsidiaries, the Company recognizes proportionately the share of profit and loss and other comprehensive income in the income statement as part of the Company's profit and loss and other comprehensive income, respectively. When the share of loss in a subsidiary equals or exceeds the carrying amount of Company’s interest in that subsidiary, the Company continues to recognize its share in the subsidiary's loss proportionately.

• D. As long as the change in shareholding in the subsidiaries does not lead to loss of control (transactions with non-controlling interest), it is to be treated as equity, which are transactions between the owners. The difference between non-controlling equity adjustment amount and the fair value of payment and receipt is to be recognized as equity.

• E. Associates are all entities over which the Company has significant influence but not control. In general, it is presumed that the investor has significant influence, if an investor holds, directly or indirectly 20 percent or more of the voting power of the investee. Investments in associates are accounted for using the equity method and are initially recognized at cost.

• F. The Company’s share of its associates’ post-acquisition profits or losses is recognized in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognized in other comprehensive income. When the Company’s share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured receivables, the Company does not recognize further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the associate.

• G. When changes in an associate’s equity do not arise from profit or loss or other comprehensive income of the associate and such changes do not affect the Company’s ownership percentage of the associate, the Company recognizes change in ownership interests in the associate in ‘capital surplus’ in proportion to its ownership.

• H. Unrealized gains on transactions between the Company and its associates are eliminated to the extent of the Company’s interest in the associates. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been adjusted where necessary to ensure consistency with the policies adopted by the Company.

• I. When the Company disposes its investment in an associate and loses significant influence over this associate, the amounts previously recognized in other comprehensive income in relation to the associate, are reclassified to profit or loss, on the same basis as would be required if the relevant assets or liabilities were disposed of. If it retains significant influence over this associate, the amounts previously recognized in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately in accordance with the aforementioned approach.

~19~

• J. According to Regulations Governing the Preparation of Financial Statements by Securities Issuers, “Profit for the year” and “Total other comprehensive income for the year” reported in the parent company only statement of comprehensive income, shall equal to “Profit for the year” and “Total other comprehensive income” attributable to owners of the parent reported in that entity's consolidated statement of comprehensive income. Total equity reported in the parent company only financial statements shall equal to equity attributable to owners of parent reported in the consolidated financial statements.

• (12) Property, plant and equipment

• A. Property, plant and equipment are initially recorded at cost. Borrowing costs incurred during the construction period are capitalized.

• B. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred.

• C. Land is not depreciated. Other property, plant and equipment apply cost model and are depreciated using the straight-line method to allocate their cost over their estimated useful lives. Each part of an item of property, plant, and equipment with a cost that is significant in relation to the total cost of the item must be depreciated separately.

• D. The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each financial year-end. If expectations for the assets’ residual values and useful lives differ from previous estimates or the patterns of consumption of the assets’ future economic benefits embodied in the assets have changed significantly, any change is accounted for as a change in estimate under IAS 8, ‘Accounting Policies, Changes in Accounting Estimates and Errors’, from the date of the change. The estimated useful lives of property, plant and equipment are as follows:

are as follows:
Asset Buildings Main buildings Factory and other buildings Machinery equipment Molding equipment Transportation equipment Other equipment	Useful lives
	40 to 60 years 5 to 40 years 3 to 12 years 2 to 3 years 5 years 3 to 8 years

~20~

(13) Leasing arrangements (lessee) - right-of-use assets/ lease liabilities

• A. Leases are recognized as a right-of-use asset and a corresponding lease liability at the date at which the leased asset is available for use by the Company. For short-term leases or leases of low-value assets, lease payments are recognized as an expense on a straight-line basis over the lease term.

• B. Lease liabilities include the net present value of the remaining lease payments at the commencement date, discounted using the incremental borrowing interest rate. Lease payments are comprised of fixed payments, less any lease incentives receivable. The Company subsequently measures the lease liability at amortized cost using the interest method and recognizes interest expense over the lease term. The lease liability is remeasured and the amount of remeasurement is recognized as an adjustment to the right-of-use asset when there are changes in the lease term or lease payments and such changes do not arise from contract modifications.

• C. At the commencement date, the right-of-use asset is stated at cost comprising the following: (a) The amount of the initial measurement of lease liabilities; and

• (b)Any lease payments made at or before the commencement date.

• The right-of-use asset is measured subsequently using the cost model and is depreciated from the commencement date to the earlier of the end of the asset’s useful life or the end of the lease term. When the lease liability is remeasured, the amount of remeasurement is recognized as an adjustment to the right-of-use asset.

• D. For lease modifications that decrease the scope of the lease, the lessee shall decrease the carrying amount of the right-of-use asset and remeasure the lease liability to reflect the partial or full termination of the lease and recognize the difference in profit or loss.

(14) Intangible assets

• A. Computer software

Stated at cost and amortized on a straight-line basis over its estimated useful life of 3 years.

• B. Patents

Stated at cost and amortized on a straight-line basis over its estimated useful life of 5 years.

(15) Impairment of non-financial assets

The Company assesses at each balance sheet date the recoverable amounts of those assets where there is an indication that they are impaired. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell or value in use. When the circumstances or reasons for recognizing impairment loss for an asset in prior years no longer exist or diminish, the impairment loss is reversed. The increased carrying amount due to reversal should not be more than what the depreciated or amortized historical cost would have been if the impairment had not been recognized.

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(16) Borrowings

Borrowings comprise short-term bank borrowings. Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized in profit or loss over the period of the lifetime using the effective interest method.

(17) Notes and accounts payable

• A. Accounts payable are liabilities for purchases of raw materials, goods or services and notes payable are those resulting from operating and non-operating activities.

• B. The short-term notes and accounts payable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

(18) Derecognition of financial liabilities

A financial liability is derecognized when the obligation specified in the contract is either discharged or cancelled or expires.

(19) Employee benefits

• A. Short-term employee benefits

Short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in respect of service rendered by employees in a period and should be recognized as expense in that period when the employees render service.

• B. Pensions

• (a) Defined contribution plans

For defined contribution plans, the contributions are recognized as pension expense when they are due on an accrual basis. Prepaid contributions are recognized as an asset to the extent of a cash refund or a reduction in the future payments.

• (b)Defined benefit plans

• i. Net obligation under a defined benefit plan is defined as the present value of an amount of pension benefits that employees will receive on retirement for their services with the Company in current period or prior periods. The liability recognized in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets. The net defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The rate used to discount is determined by using interest rates of government bonds (at the balance sheet date) of a currency and term consistent with the currency and term of the employment benefit obligations.

• ii.Remeasurements arising on defined benefit plans are recognized in other comprehensive income in the period in which they arise and are recorded as retained earnings.

• iii. Past service costs are recognized immediately in profit or loss.

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• C. 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.

• D. Employees’ compensation and directors’ remuneration

  • Employees’ compensation and directors’ remuneration are recognized as expense and liability, provided that such recognition is required under legal or constructive obligation and those amounts can be reliably estimated. Any difference between the resolved amounts and the subsequently actual distributed amounts is accounted for as changes in estimates. If employee compensation is paid by shares, the Company calculates the number of shares based on the closing price at the previous day of the board meeting resolution.

• (20) Income taxes

• A. The tax expense for the period comprises current and deferred tax. Tax is recognized in profit or loss, except to the extent that it relates to items recognized in other comprehensive income or items recognized directly in equity, in which cases the tax is recognized in other comprehensive income or equity.

• B. The current income tax expense is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Compnay operates and generates taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in accordance with applicable tax regulations. It establishes provisions where appropriate based on the amounts expected to be paid to the tax authorities. An additional tax is levied on the unappropriated retained earnings and is recorded as income tax expense in the year the stockholders resolve to retain the earnings.

• C. Deferred tax is recognized, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the balance sheet. However, the deferred tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss and does not give rise to equal taxable and deductible temporary differences. Deferred tax is provided on temporary differences arising on investments in subsidiaries and associates, except where the timing of the reversal of the temporary difference is controlled by the Compnay and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realized or the deferred tax liability is settled.

• D. Deferred tax assets are recognized only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilized. At each balance sheet date, unrecognized and recognized deferred tax assets are reassessed.

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• E. Current income tax assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously. Deferred tax assets and liabilities are offset on the balance sheet when the entity has the legally enforceable right to offset current tax assets against current tax liabilities and they are levied by the same taxation authority on either the same entity or different entities that intend to settle on a net basis or realize the asset and settle the liability simultaneously.

• F. A deferred tax asset shall be recognized for the carryforward of unused tax credits resulting from acquisitions of equipment or technology, research and development expenditures and equity investments to the extent that it is possible that future taxable profit will be available against which the unused tax credits can be utilized.

(21) Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or stock options are shown in equity as a deduction, net of tax, from the proceeds.

• (22) Dividends

Dividends are recorded in the Company’s financial statements in the period in which they are approved by the Company’s shareholders. Cash dividends are recorded as liabilities; stock dividends are recorded as stock dividends to be distributed and are reclassified to ordinary shares on the effective date of new shares issuance.

• (23) Revenue recognition

Sales of goods

• A. The Company primarily manufactures and sells car lamps and molds related products. Sales are recognized when control of the products has transferred, being when the products are delivered to the customer, the customer has full discretion over the channel and price to sell the products, and there is no unfulfilled obligation that could affect the customer’s acceptance of the products. Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the customer, and either the customer has accepted the products in accordance with the sales contract, or the Company has objective evidence that all criteria for acceptance have been satisfied. As the time interval between the transfer of committed goods or service and the payment of customer does not exceed one year, the Company does not adjust the transaction price to reflect the time value of money.

• B. A receivable is recognized when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due.

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(24) Government grants

Government grants are recognized at their fair value only when there is reasonable assurance that the Company will comply with any conditions attached to the grants and the grants will be received. Government grants are recognized in profit or loss on a systematic basis over the periods in which the Company recognizes expenses for the related costs for which the grants are intended to compensate.

5. Critical Accounting Judgements, Estimates and Key Sources of Assumption Uncertainty

The preparation of these parent company only financial statements requires management to make critical judgements in applying the Company’s accounting policies and make critical assumptions and estimates concerning future events. Assumptions and estimates may differ from the actual results and are continually evaluated and adjusted based on historical experience and other factors. Such assumptions and estimates have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year; and the related information is addressed below:

• (1) Critical judgements in applying the Company’s accounting policies

• None.

(2) Critical accounting estimates and assumptions

• Evaluation of inventories

• A. As inventories are stated at the lower of cost and net realizable value, the Company must determine the net realizable value of inventories on balance sheet date using judgements and estimates. Due to the rapid technology innovation, the Company evaluates the amounts of normal inventory consumption, obsolete inventories or inventories without market selling value on balance sheet date and writes down the cost of inventories to the net realizable value. Such an evaluation of inventories is principally based on the demand for the products within the specified period in the future. Therefore, there might be material changes to the evaluation.

• B. As of December 31, 2023, the carrying amount of inventories was $1,084,652.

• Details of Significant Accounts

(1) Cash and cash equivalents

tails of Significant Accounts Cash and cash equivalents
Cash: Cash on hand and revolving funds Checking accounts and demand deposits Cash equivalents: Time deposits	December31,2023 750 $ 320,571 321,321 61,410 382,731 $	December31,2022
		505 $ 153,513 154,018
		-
		154,018 $

~25~

• A. The Company transacts with a variety of financial institutions all with high credit quality to disperse credit risk, so it expects that the probability of counterparty default is remote.

• B. As of December 31, 2023 and 2022, the Company’s time deposits maturing between three months －

• and one year (listed as “Financial assets at amortized cost - current”) were $ and $5,600, respectively.

• C. The Company has no cash and cash equivalents pledged to others as of December 31, 2023 and 2022.

(2) Financial assets at amortized cost – current

Items December 31, 2023 December 31, 2022 Current items: Time deposits with original maturities of over 3 months $ - $ 5,600

• A. The Company recognized interest income in profit or loss on financial assets at amortized cost －

• amounting to $12 and $ for the years ended December 31, 2023 and 2022, respectively (listed as “Interest income”).

• B. As of December 31, 2023 and 2022, without considering any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the financial assets at amortized cost held by the Company was its carrying amount.

• C. The Company has no financial assets at amortized cost pledged to others as of December 31, 2023 and 2022.

• D. Information relating to credit risk of financial assets at amortized cost is provided in Note 12(2) ‘Financial Instruments’. The counterparties of the Company’s investments in certificates of deposits are financial institutions with high credit quality, so the Company expects that the probability of counterparty default is remote.

(3) Notes and accounts receivable, net

Notes and accounts receivable, net
		December	31, 2023		December	31,2022
Notes receivable		$	9,097		$	435
Less: Allowance for uncollectible accounts	(		11)	(		19)
		$	9,086		$	416
Accounts receivable		$	687,919		$	691,198
Less: Allowance for uncollectible accounts	(		5,247)	(		5,758)
		$	682,672		$	685,440
Accounts receivable - related parties		$	97,054		$	148,178
Less: Allowance for uncollectible accounts	(		102)	(		1,754)
		$	96,952		$	146,424

~26~

• A. The aging analysis of notes and accounts receivable (including related parties) is as follows:

Notes receivable Not past due Accounts receivable (including related parties) Not past due Within 90 days 91 to 180 days 181 to 270 days Over 271 days	December31,2023 9,097 $ 772,485 $ 5,945 5,136 1,200 207 784,973 $	December 31, 2022 435 $
		804,793 $ 22,442 3,934 944 7,263
		839,376 $

The above aging analysis was based on past due date.

• B. As of December 31, 2023 and 2022, notes and accounts receivable were all from contracts with customers. As of January 1, 2022, the balance of receivables from contracts with customers amounted to $792,393.

• C. As of December 31, 2023 and 2022, without considering any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the notes and accounts receivable was its carrying amount.

• D. The Company has no notes and accounts receivable pledged to others as of December 31, 2023 and 2022.

• E. Information relating to credit risk of notes and accounts receivable is provided in Note 12(2), ‘Financial Instruments’.

(4) Inventories

‘Financial Instruments’. Inventories
Merchandise Raw materials Work in progress Finished goods	December31,2023 47,966 $ 365,382 68,274 603,030 1,084,652 $	December31,2022
		38,668 $ 273,410 119,236 521,470
		952,784 $

The cost of inventories recognized as expense for the year:

			Forthe years ended	Forthe years ended	December31,
			2023		2022
Cost of goods sold		$	4,091,143	$	4,141,885
Provision for inventory market price decline			2,476		-
Loss on scrapped inventories			13,139		13,533
Income from sale of scraps	(		2,860)	(	4,395)
		$	4,103,898	$	4,151,023

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(5) Investments accounted for under equity method

• A. Movements of investments accounted for under equity method are as follows:

		2023		2022
January 1	$	174,923	$	272,325
Addition of investments accounted for		9,335		-
under equity method (Note)
Unrealized gain on sales	(	730)	(	1,473)
Realized gain on sales		1,047		1,762
Share of profit or loss of investments	(	176,667)	(	102,707)
accounted for under equity method
Other equity - Exchange differences
on translation of foreign
financial statements	(	290)		5,016
December 31	$	7,618	$	174,923

(Note) The subsidiary, Ta Yih International Investment Co., Ltd. (BVI) had completed the process of capital increase in November, 2023.

• B. Details of investments accounted for under equity method are as follows:

Subsidiary: Ta Yih International Investment Co., Ltd. (BVI) Associates: Fuzhou Koito Ta Yih Automotive Lamp Co., Ltd.		December31,2023		December31,2022
		7,618 $ - 7,618 $		815 $ 174,108 174,923 $

• C. For information regarding the subsidiary of the Company, please refer to Note 4(3), ‘‘Basis of consolidation’’ of the Company’s 2023 Annual Consolidated Financial Statements.

• D. Associates

• (a) The basic information of the associates that are material to the Company is as follows:

Companyname	Principal place of business	Shareholdingratio	Shareholdingratio	Nature of relationship
		December31,2023	December31,2022
Fuzhou Koito Ta Yih Automotive Lamp Co., Ltd.	China	49.00%	49.00%	Strategic alliance

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• (b) The summarized financial information of the associates that are material to the Company is as follows:

Fuzhou Koito Ta Yih Automotive Lamp Co., Ltd.

Balance sheets

as follows: Fuzhou Koito Ta Yih Automotive Lamp Co., Ltd. Balance sheets	mp Co., Ltd.
Statements of comprehensive income December31,2023 December31,2022 Current assets 1,358,567 $ 1,503,436 $ Non-current assets 1,053,707 1,243,809 Current liabilities 2,904,972) ( 2,383,636) ( Total net assets 492,698) ($ 363,609 $ Share in associate's net assets 3,743 $ 178,168 $ Unrealized gain on transactions with associates 3,743) ( 4,060) ( Carrying amount of the associate - $ 174,108 $ 2023 2022 Revenue 1,418,857 $ 1,627,297 $ Loss for the year 843,177) ($ 209,498) ($ Total comprehensive income for the year 843,177) ($ 209,498) ($ Forthe years endedDecember31,	December31,2023	December31,2022
Revenue Loss for the year Total comprehensive income for the year

• E. The Company has no investments accounted for under equity method pledged to others as of December 31, 2023 and 2022.

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(6) Property, plant and equipment

January1,2023 Cost Accumulated depreciation For theyear ended December31,2023 January 1 Additions Transferred from inventories Depreciation Disposals - cost - accumulated depreciation December 31 December31,2023 Cost Accumulated depreciation

Molding Transportation Other Land Buildings Machinery equipment equipment equipment Total 601,050 $ 264,360 $ 1,138,863 $ 245,186 $ 18,013 $ 341,493 $ 2,608,965 $ - 237,894) ( 935,979) ( 169,426) ( 16,793) ( 282,230) ( 1,642,322) ( 601,050 $ 26,466 $ 202,884 $ 75,760 $ 1,220 $ 59,263 $ 966,643 $ 601,050 $ 26,466 $ 202,884 $ 75,760 $ 1,220 $ 59,263 $ 966,643 $ - 6,394 10,332 - 476 24,324 41,526 - - 15,391 18,462 - 4,008 37,861 - 7,579) ( 51,256) ( 46,170) ( 1,004) ( 26,897) ( 132,906) ( - - 97,089) ( - - 3,863) ( 100,952) ( - - 96,690 - - 3,858 100,548 601,050 $ 25,281 $ 176,952 $ 48,052 $ 692 $ 60,693 $ 912,720 $ 601,050 $ 270,754 $ 1,067,497 $ 263,648 $ 18,489 $ 365,962 $ 2,587,400 $ - 245,473) ( 890,545) ( 215,596) ( 17,797) ( 305,269) ( 1,674,680) ( 601,050 $ 25,281 $ 176,952 $ 48,052 $ 692 $ 60,693 $ 912,720 $

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==> picture [719 x 299] intentionally omitted <==

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

Molding Transportation Other
Land Buildings Machinery equipment equipment equipment Total
January 1, 2022
Cost $ 601,050 $ 259,996 $ 1,124,622 $ 178,147 $ 17,583 $ 311,664 $ 2,493,062
Accumulated depreciation - ( 230,413) ( 903,406) ( 89,166) ( 15,318) ( 259,121) ( 1,497,424)
$ 601,050 $ 29,583 $ 221,216 $ 88,981 $ 2,265 $ 52,543 $ 995,638
For the year ended December 31, 2022
January 1 $ 601,050 $ 29,583 $ 221,216 $ 88,981 $ 2,265 $ 52,543 $ 995,638
Additions - 4,364 38,924 67,039 430 31,373 142,130
-
Depreciation ( 7,481) ( 57,236) ( 80,260) ( 1,475) ( 24,652) ( 171,104)
- - - -
Disposals - cost ( 24,683) ( 1,544) ( 26,227)
- accumulated depreciation - - 24,663 - - 1,543 26,206
December 31 $ 601,050 $ 26,466 $ 202,884 $ 75,760 $ 1,220 $ 59,263 $ 966,643
December 31, 2022
Cost $ 601,050 $ 264,360 $ 1,138,863 $ 245,186 $ 18,013 $ 341,493 $ 2,608,965
Accumulated depreciation - ( 237,894) ( 935,979) ( 169,426) ( 16,793) ( 282,230) ( 1,642,322)
$ 601,050 $ 26,466 $ 202,884 $ 75,760 $ 1,220 $ 59,263 $ 966,643
----- End of picture text -----

A. As of December 31, 2023 and 2022, the Company’s property, plant and equipment are all for own use.

B. There was no capitalization of borrowing costs for the years ended December 31, 2023 and 2022.

C. As of December 31, 2023 and 2022, the Company has no property, plant and equipment pledged to others.

~31~

(7) Leasing arrangements - lessee

• A. The Group leases various assets including buildings, office equipment, and business vehicle. Rental contracts are typically made for periods of 2 to 5 years. Certain lease contracts of office equipment and business vehicles do not give priority rights to renew the lease or purchase the properties. The Company does not have bargain purchase options to acquire the leasehold buildings at the end of the lease contracts of buildings. In addition, the Company is prohibited from subleasing or transferring all or any portion of the underlying assets without the lessor’s consent.

• B. Short-term leases with a lease term of 12 months or less comprise underlying assets such as air compressors, forklift trucks and offices, etc. Low-value assets comprise office equipment such as printers, etc.

• C. The carrying amount of right-of-use assets and the depreciation charge are as follows:

Buildings Office equipment Transportation equipment Buildings Office equipment Transportation equipment	December31,2023 December 31, 2022 Carrying amount Carrying amount 29,158 $ 34,627 $ 2,830 1,046 13,320 2,977 45,308 $ 38,650 $ 2023 2022 Depreciation Depreciation 8,288 $ 6,111 $ 529 522 4,708 4,149 13,525 $ 10,782 $ Forthe years endedDecember31,	December 31, 2022
		Carrying amount
		34,627 $ 1,046 2,977
		38,650 $
		Depreciation
		6,111 $ 522 4,149
		10,782 $

• D. For the years ended December 31, 2023 and 2022, the additions to right-of-use assets were $21,054 and $42,186, respectively.

• E. The information on profit or loss relating to lease contracts is as follows:

		Forthe	years endedDecember31,
		2023	2022
Items affecting profit or loss
Interest expense on lease liabilities	$		606 $	402
Expense on short-term lease contracts			978	154
Expense on leases of low-value assets			87	122
Gain on lease modification	(		23)	-

• F. For the years ended December 31, 2023 and 2022, the Company’s total cash outflow for leases were $18,871 and $11,358, respectively.

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(8) Short-term borrowings

==> picture [477 x 75] intentionally omitted <==

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

Type of borrowings December 31, 2023 Interest rate range Collateral
Unsecured bank borrowings $ 210,000 1.70% None
Type of borrowings December 31, 2022 Interest rate range Collateral
Unsecured bank borrowings $ 300,000 1.40% ～ 1.65% None
----- End of picture text -----

For more information about interest expense recognized in profit or loss by the Company for the years ended December 31, 2023 and 2022, please refer to Note 6(18), ‘Finance costs’.

(9) Other payables

Wages, salaries and bonus payable Utilities expenses payable Molding equipment payables Others	December 31, 2023 December31,2022 146,926 $ 140,795 $ 5,939 5,062 12,900 9,357 21,998 17,785 187,763 $ 172,999 $

(10) Pensions

• A. The Company has a defined benefit pension plan in accordance with the Labor Standards Act, covering all regular employees’ service years prior to the enforcement of the Labor Pension Act on July 1, 2005 and service years thereafter of employees who chose to continue to be subject to the pension mechanism under the Labor Standards Act. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement. The Company has established the pension fund monitoring committee in accordance with the Labor Standards Act and the manager pension fund managing committee in accordance with the Income Tax Act since August,1987 and July, 1999. 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. Also, the Company would assess the balance in the aforementioned labor pension reserve account by December 31, every year. If the account balance is insufficient to pay the pension calculated by the aforementioned method to the employees expected to qualify for retirement in the following year, the Company will make contributions for the deficit by next March.

~33~

Information about the abovementioned pension plan is disclosed as follows:

(a) The amounts recognized in the balance sheet are as follows:

	December	31, 2023	December	31,2022
Present value of defined benefit obligations	($	236,141)	($	259,563)
Fair value of plan assets		177,247		209,766
Net defined benefit liabilities	($	58,894)	($	49,797)

(b) Movements in net defined benefit liabilities are as follows:

			For theyear	For theyear	For theyear	ended December	ended December	31,2023
		Present value of
		defined benefit				Fair value of		Net defined
			obligations			planassets		benefit liabilities
January 1	($		259,563)		$	209,766	49,797) ($
Current service cost	(		1,694)			-	(	1,694)
Interest (expense) income	(		3,569)			2,918	(	651)
	(		264,826)			212,684	(	52,142)
Remeasurements:
Return on plan assets
(excluding amounts included in
interest income or expense)			-			1,285		1,285
Change in financial assumptions	(		2,795)			-	(	2,795)
Experience adjustments	(		10,042)			-	(	10,042)
	(		12,837)			1,285	(	11,552)
Pension fund contribution			-			4,800		4,800
Paid pensions			41,522	(		41,522)		-
December 31	($		236,141)		$	177,247	58,894) ($

~34~

For the year ended December 31, 2022

		For theye	For theye	a	r	ended Decembe	r	3	1,2022
		Present value of
		defined benefit				Fair value of			Net defined
			obligations			planassets		benefitliabilities
January 1	($		279,214)		$	200,484	($		78,730)
Current service cost	(		1,997)			-	(		1,997)
Interest (expense) income	(		1,396)			1,027	(		369)
	(		282,607)			201,511	(		81,096)
Remeasurements:
Return on plan assets
(excluding amounts included in
interest income or expense)			-			16,765			16,765
Change in financial assumptions			10,080			-			10,080
Experience adjustments	(		12,089)			-	(		12,089)
	(		2,009)			16,765			14,756
Pension fund contribution			-			16,543			16,543
Paid pensions			25,053	(		25,053)			-
December 31	($		259,563)		$	209,766	($		49,797)

(c) The Bank of Taiwan was commissioned to manage the Fund of the Company’s defined benefit pension plan in accordance with the Fund’s annual investment and utilization plan and the “Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund” (Article 6: The scope of utilization for the Fund includes deposit in domestic or foreign financial institutions, investment in domestic or foreign listed, over-the-counter, or private placement equity securities, investment in domestic or foreign real estate securitization products, etc.). With regard to the utilization of the Fund, its minimum earnings in the annual distributions on the final financial statements shall be no less than the earnings attainable from the amounts accrued from two-year time deposits with the interest rates offered by local banks. If the earnings are less than aforementioned rates, government shall make payment for the deficit after being authorized by the Regulator. The Company has no right to participate in managing and operating that fund and hence the Company is unable to disclose the classification of plan assets fair value in accordance with IAS 19 paragraph 142. The composition of fair value of plan assets as of December 31, 2023 and 2022 is given in the Annual Labor Retirement Fund Utilization Report announced by the government.

~35~

(d) The principal actuarial assumptions used were as follows:

Discount rate Future salary increase rate	2023 2022 1.250% 1.375% 2.500% 2.500% Forthe years endedDecember31,	2023 2022 1.250% 1.375% 2.500% 2.500% Forthe years endedDecember31,
		1.375%
		2.500%

Future mortality rate was estimated based on the 6[th] Taiwan Standard Ordinary Experience Mortality Table for the years ended December 31, 2023 and 2022.

Because the main actuarial assumption changed, the present value of defined benefit obligation is affected. The analysis was as follows:

==> picture [447 x 153] intentionally omitted <==

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

Discount rate Future salary increase rate
Increase 0.25% Decrease 0.25% Increase 0.25% Decrease 0.25%
December 31, 2023
Effect on present
value of defined
benefit obligation ($ 5,543) $ 5,738 $ 5,571 ($ 5,411)
December 31, 2022
Effect on present
value of defined
benefit obligation ($ 6,183) $ 6,403 $ 6,221 ($ 6,038)
----- End of picture text -----

The sensitivity analysis above is based on one assumption which changed while the other conditions remain unchanged. In practice, more than one assumption may change all at once. The method of analyzing sensitivity and the method of calculating net pension liability in the balance sheet are the same.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the previous period.

• (e) Expected contributions to the defined benefit pension plans of the Company for the year ending December 31, 2024 amount to $4,920.

• (f) As of December 31, 2023, the weighted average duration of the retirement plan is 9.5 years.

The analysis of timing of the future pension payment was as follows:

The analysis of timing of the future pension payment was as follows:
Within next 1 year Within next 2 to 5 years Over next 6 years	5,631 $ 58,228 62,649
	126,508 $

~36~

• B. Effective July 1, 2005, the Company has established a defined contribution pension plan (the “New Plan”) under the Labor Pension Act (the “Act”), covering all regular employees with R.O.C. nationality. Under the New Plan, the Company contributes monthly an amount based on 6% of the employees’ monthly salaries and wages to the employees’ individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment. The pension costs under the Company’s defined contribution pension plan for the years ended December 31, 2023 and 2022 were $23,029 and $22,340, respectively.

(11) Share capital

• A. Movements in the number of the Company’s ordinary shares outstanding are as follows (Unit: in thousand shares):

Balance as of January 1 and December 31	2023 2022 76,230 76,230 For theyears ended December31,

• B. As of December 31, 2023, the Company’s total authorized capital and the paid-in capital were $762,300, consisting of 76,230 thousand shares of ordinary stock, with a par value of $10 (in dollars) per share. All proceeds from shares issued have been collected.

(12) Capital surplus

Pursuant to the R.O.C. Company Act, capital surplus arising from paid-in capital in excess of par value on issuance of common stocks and donations can be used to cover accumulated deficit or to issue new stocks or cash to shareholders in proportion to their share ownership, provided that the Company has no accumulated deficit. Further, the R.O.C. Securities and Exchange Act requires that the amount of capital surplus to be capitalized mentioned above should not exceed 10% of the paidin capital each year. Capital surplus should not be used to cover accumulated deficit unless the legal reserve is insufficient.

(13) Retained earnings

• A. Except for covering accumulated deficit or issuing new stocks or cash to shareholders in proportion to their share ownership, the legal reserve shall not be used for any other purpose. The use of legal reserve for the issuance of stocks or cash to shareholders in proportion to their share ownership is permitted, provided that the distribution of the reserve is limited to the portion in excess of 25% of the Company’s paid-in capital.

~37~

• B. Under the Company’s Articles of Incorporation, with consideration of the future needs for funds and long-term financial plan, the current year’s earnings, if any, shall be first utilized for paying taxes, offsetting losses of previous years, setting aside 10% of the remaining profit as legal reserve, setting aside or reversing special reserve in accordance with the Act. The remainder with any undistributed retained earnings shall be distributed 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 total shareholders’ dividends.

• C. Special reserve

• (a) In accordance with the regulations, the Company shall set aside special reserve from the debit balance on other equity items at the balance sheet date before distributing earnings. When debit balance on other equity items is reversed subsequently, the reversed amount could be included in the distributable earnings

• (b) The amount of $23,122 previously set aside by the Company as special reserve on initial application of IFRSs in accordance with Order No. Financial-Supervisory-SecuritiesCorporate-1090150022, dated March 31, 2021, shall be reversed proportionately when the relevant assets are used, disposed of or reclassified subsequently. Such amounts are reversed upon disposal or reclassified if the assets are investment property of land, and reversed over the use period if the assets are investment property other than land.

• D. The Company recognized cash dividends distributed to owners amounting to $53,361 ($0.7 (in dollars) per share) and $45,738 ($0.6 (in dollars) per share) for the years ended December 31, 2023 and 2022, respectively. On March 8, 2024, the Board of Directors proposed for the distribution of cash dividends from 2023 earnings in the amount of $53,361 ($0.7(in dollars) per share.

(14) Operating revenue

• A. The Company derives revenue from the transfer of goods sold of revenue-related contract at a point in time in the following major product categories:

Car lamps Molds Others	For theyears ended December31,	For theyears ended December31,
	2023 4,089,309 $ 321,864 405,831 4,817,004 $	2022
		4,018,051 $ 271,118 457,236
		4,746,405 $

B. Contract liabilities

As of December 31, 2023, December 31, 2022 and January 1, 2022, the Company recognized contract liabilities amounting to $25,247, $113,995 and $53,953, respectively. Revenue recognized for the years ended December 31, 2023 and 2022 that was included in the contract liability balance at the beginning of the year amounted to $103,248 and $48,360, respectively.

~38~

(15) Interest income

Interest income
	For theyears ended		December31,
	2023		2022
Interest income from bank deposits	5,067 $	$	293
Interest income from financial assets
at amortized cost	12		-
	5,079 $	$	293
Other income
	For the years ended		December 31,
	2023		2022
Royalty revenue	14,899 $	$	35,330
Government grants income	15,978		5,833
Other income	10,159		2,468
	41,036 $	$	43,631

(16) Other income

(17) Other gains and losses

Other gains and losses
Finance costs 2023 2022 (Losses) gains on disposal of property, plant and equipment 404) ($ 59 $ Gain from lease modification 23 - Net currency exchange gain 20,118 103,517 Royalty expense 4,567) ( 10,221) ( Other losses 850) ( 67) ( 14,320 $ 93,288 $ Forthe years endedDecember31, 2023 2022 Interest expense: Bank borrowings 5,382 $ 4,954 $ Interest expense on lease liabilities 606 402 Others 9 - 5,997 $ 5,356 $ Forthe years endedDecember31,	Forthe years endedDecember31,
	2023 5,382 $ 606 9 5,997 $	2022
		4,954 $ 402 -
		5,356 $

(18) Finance costs

~39~

(19) Expenses by nature

Expenses by nature
Employee benefit expense Employee benefit expense Depreciation charges Amortization charges Employee benefit expense Depreciation charges Amortization charges Wages and salaries Labor and health insurance Pension costs Directors' remuneration Other personnel expenses Wages and salaries Labor and health insurance Pension costs Directors' remuneration Other personnel expenses	Forthe yearendedDecember31,2023
	Operatingcosts Operatingexpenses Total 443,840 $ 206,615 $ 650,455 $ 132,061 14,370 146,431 1,262 5,128 6,390 577,163 $ 226,113 $ 803,276 $ Forthe yearendedDecember31,2022		Total
			650,455 $ 146,431 6,390
			803,276 $
	Operating costs Operating expenses Total 440,420 $ 193,161 $ 633,581 $ 167,646 14,240 181,886 2,804 7,323 10,127 610,870 $ 214,724 $ 825,594 $ Operating costs Operating expenses Total 361,327 $ 172,478 $ 533,805 $ 41,311 15,553 56,864 17,666 7,708 25,374 - 370 370 23,536 10,506 34,042 443,840 $ 206,615 $ 650,455 $ Operating costs Operating expenses Total 359,267 $ 159,935 $ 519,202 $ 39,686 14,564 54,250 17,341 7,365 24,706 - 940 940 24,126 10,357 34,483 440,420 $ 193,161 $ 633,581 $ For theyear ended December31,2023 For the year ended December 31, 2022		Total
			633,581 $ 181,886 10,127
			825,594 $
		Operating expenses 159,935 $ 14,564 7,365 940 10,357 193,161 $	Total 519,202 $ 54,250 24,706 940 34,483 633,581 $

(20) Employee benefit expense

• A. For the years ended December 31, 2023 and 2022, the average number of employees of the Company were 866 and 857 employees, respectively, which both included 7 non-employee directors. For the years ended December 31, 2023 and 2022, the average employee benefit expenses were $757 and $744, while average wages and salaries were $621 and $611, respectively. The average wages and salaries increased by 1.64% compared to prior year.

• B. The Company has set up an Audit Committee. As a result, there was no supervisors’ remuneration for the years ended December 31, 2023 and 2022.

~40~

• C. The remuneration of the directors and managers of the Company shall be determined by the board of directors in accordance with the provisions of the Articles of Incorporation and in accordance with the general standards of the industry. The general standards of the industry refer to formulating the salary and remuneration policy of the company's directors and managers by taking into account the rationality of the correlation between personal performance, company operating performance and future risks.

• (a) The directors of the Company are paid for the execution of the company's business. The amount depends on the value of the company's participation in the operation and the value of the contribution. As for the independent directors, the directors' meeting will set a fixed remuneration, and all directors will not participate in the company's profit distribution.

• (b) The standard of manager's remuneration payment depends on the performance of the individual's performance and the contribution to the overall operation of the company, taking into account the market rate.

• (c) The procedures for paying salary, besides considering the overall operational performance, future industry business risks and development trends, the individual participation and the contribution of the individual performance and contribution to company performance, will be given reasonable compensation. Relevant performance appraisal and reasonableness of remuneration are reviewed by the Remuneration Committee and the Board of Directors, and the remuneration system is reviewed at times, depending on the actual operating conditions and relevant laws and regulations, in order to balance the company's sustainable management and risk control.

• D. In accordance with the Articles of Incorporation of the Company, a ratio of distributable profit of the current year, after covering accumulated losses, shall be distributed as employees’ compensation. The ratio shall not be lower than 1% for employees’ compensation, and then be appropriated as employees’ compensation based on the abovementioned ratios. In addition, the Company did not distribute directors’ remuneration over years, and thus did not accrue directors’ remuneration.

• E. For the years ended December 31, 2023 and 2022, employees’ compensation was accrued at $1,652 and $1,152, respectively. The aforementioned amounts were recognized in salary expenses. The employees’ compensation was estimated and accrued based on the percentage of distributable profit of current year as of the end of reporting period as prescribed by the Company’s Articles of Incorporation. The employees’ compensation resolved by the Board of Directors for 2023 was $1,652 and the employees’ compensation will be distributed in the form of cash. The amounts of employees’ compensation as resolved by the Board of Directors was in agreement with the estimated amounts of $1,152 recognized in the 2022 financial statements. Information about employees’ compensation of the Company as resolved by the Board of Directors will be posted in the “Market Observation Post System” at the website of the Taiwan Stock Exchange.

~41~

(21) Income tax

A. Income tax expense (benefit):

(a) Components of income tax expense (benefit):

			Forthe years ended	Forthe years ended	Forthe years ended	December31,
			2023			2022
Current income tax:
Current tax on profits for the year		$	55,551		$	15,291
Tax on unappropriated earnings			1,860			1,071
Prior year income tax overestimation	(		17,597)	(		27,247)
Total current income tax			39,814	(		10,885)
Deferred income tax:
Origination and reversal of temporary
differences	(		3,468)			6,816
Income tax expense (benefit)		$	36,346	($		4,069)

(b) The income tax relating to components of other comprehensive income is as follows:

			Forthe years ended	Forthe years ended	Forthe years ended	December31,
			2023			2022
Remeasurement of defined benefit
Robligations	$		2,310	($		2,951)
Financial statements translation
differences of foreign operations			58	(		1,003)
	$		2,368	($		3,954)
Reconciliation between income tax expense	(benefit)		and accounting profit:
			Forthe years ended			December31,
			2023			2022
Tax calculated based on profit before		$	15,751		$	16,951
tax and statutory tax rate
Effacts from items adjusted
in accordance with tax regulations			36,332			5,156
Tax on unappropriated earnings			1,860			1,071
Prior year income tax overestimation	(		17,597)	(		27,247)
Income tax expense (benefit)		$	36,346	($		4,069)

B. Reconciliation between income tax expense (benefit) and accounting profit:

~42~

C. Amounts of deferred tax assets or liabilities as a result of temporary differences are as follows:

For the year ended December 31, 2023

Recognized in January1 profit or loss Deferred income tax assets: Temporary differences: Loss on decline in market value of inventories 2,569 $ 496 $ Unrealized gain with associates 812 812) ( Unused compensated absences 3,908 502 Long-term employee benefit liabilities 438 6) ( Pensions 9,959 491) ( Unrealized exchange losses - 1,731 Financial statements translation differences of foreign operations 3,763 - 21,449 $ 1,420 $ Deferred income tax liabilities: Temporary differences: Increment tax on land revaluation 76,736) ($ - $ Unrealized exchange gains 2,048) ( 2,048 78,784) ($ 2,048 $ 57,335) ($ 3,468 $

Recognized in other comprehensive income December31 - $ 3,065 $ - - - 4,410 - 432 2,310 11,778 - 1,731 58 3,821 2,368 $ 25,237 $ - $ 76,736) ($ - - - $ 76,736) ($ 2,368 $ 51,499) ($

~43~

For the year ended December 31, 2022

									Recognized
									in other
					Recognized in		comprehensive
			January1		profit	or loss			income	December31
Deferred income tax assets:
Temporary differences:
Loss on decline in market
value of inventories		$	2,569		$	-		$	-		$	2,569
Unrealized gain with
associates			870	(		58)			-			812
Deferred revenue			17,588	(		17,588)			-			-
Unused compensated
absences			3,717			191			-			3,908
Long-term employee benefit
liabilities			521	(		83)			-			438
Pensions			15,746	(		2,836)	(		2,951)			9,959
Financial statements
translation differences
of foreign operations			4,766			-	(		1,003)			3,763
		$	45,777	($		20,374)	($		3,954)		$	21,449
Deferred income tax liabilities:
Temporary differences:
Foreign investment income	($		15,398)		$	15,398		$	-		$	-
Increment tax on land
revaluation	(		76,736)			-			-	(		76,736)
Unrealized exchange gains	(		208)	(		1,840)			-	(		2,048)
	($		92,342)		$	13,558		$	-	($		78,784)
	($		46,565)	($		6,816)	($		3,954)	($		57,335)

D. The Company’s income tax returns through 2021 have been assessed and approved by the Tax Authority. As of March 13,2024, there was no administrative lawsuit.

~44~

(22) Earnings per share

For the year ended December 31, 2023

Earnings per share	Forthe yearendedDecember31,2023	Forthe yearendedDecember31,2023	,2023
Basic earnings per share Profit attributable to the ordinary shareholders Diluted earnings per share Profit attributable to the ordinary shareholders Assumed conversion of all dilutive potential ordinary shares Employees’ compensation Profit attributable to the ordinary shareholders plus assumed conversion of all dilutive potential ordinary shares Basic earnings per share Profit attributable to the ordinary shareholders Diluted earnings per share Profit attributable to the ordinary shareholders Assumed conversion of all dilutive potential ordinary shares Employees’ compensation Profit attributable to the ordinary shareholders plus assumed conversion of all dilutive potential ordinary shares	Weighted average number of Earnings Amount shares outstanding per share aftertax (sharesinthousands) (indollars) 42,410 $ 76,230 0.56 $ 42,410 $ 76,230 - 42 42,410 $ 76,272 0.56 $ Forthe yearendedDecember31,2022		Earnings per share (indollars)
			0.56 $
			0.56 $
	Amount aftertax 88,824 $ 88,824 $ - 88,824 $	Weighted average number of shares outstanding (sharesinthousands) 76,230 76,230 38 76,268	Earnings per share (indollars)
			1.17 $
			1.17 $

~45~

(23) Supplemental cash flow information

A. Investing activities with partial cash payments:

pplemental cash flow information Investing activities with partial cash payments:
			Forthe years endedDecember31,
			2023		2022
Acquisition of property, plant and equipment		$	41,526		142,130 $
Add: Ending balance of prepayments for
equipment			9,541		7,053
Less: Beginning balance of prepayments for
equipment	(		7,053)	(	11,700)
Cash paid for acquisition of property, plant
Cand equipment		$	44,014		137,483 $

B. Investing activities with no cash flow effects:

Inventories transferred to property, plant and equipment	2023 2022 37,861 $ - $ For the years ended December 31,

(24) Changes in liabilities from financing activities

For the year ended December 31, 2023

January 1 Changes in cash flow from financing activities Changes in other non-cash items December 31	Short-term borrowings Leaseliabilities 300,000 $ 38,826 $ 90,000) ( 17,200) ( - 20,160 210,000 $ 41,786 $	Liabilities from financing activities
		338,826 $ 107,200) ( 20,160 251,786 $

For the year ended December 31, 2022

January 1 Changes in cash flow from financing activities Changes in other non-cash items December 31	Short-term borrowings	Short-term notes and bills payable Leaseliabilities 90,000 $ 8,240 $ 90,000) ( 10,680) ( - 41,266 - $ 38,826 $	Liabilities from financing activities	Liabilities from financing activities
	375,830 $ 78,830) ( 3,000 300,000 $		474,070 $ 179,510) ( 44,266 338,826 $
				338,826 $

~46~

7. Related Party Transactions

(1) Names of related parties and relationship

lated Party Transactions Names of related parties and relationship
Names of relatedparties	Relationship with theCompany
Ta Yih International Investment Co., Ltd. (BVI) Koito Manufacturing Co., Ltd. Guangzhou Koito Automotive Lamp Co., Ltd. India Japan Lighting Private Limited PT. Indonesia Koito Thai Koito Company Limited Hubei Koito Automotive Lamp Co., Ltd. North American Lighting Inc. NAL DO BRASIL INDUSTRIA E COMERCIO DE COMPONENTES DE ILUMINACAO LTDA Fuzhou Koito Ta Yih Automotive Lamp Co., Ltd. Ta Yih Kenmos Auto Parts Co., Ltd. Ta Yih Kenmos Auto Parts (Thailand) Co., Ltd. Ta Yih International Hotel Co., Ltd. TYC Brother Industrial Co., Ltd. DBM Reflex of Taiwan Co., Limited Juoku Technology Co., Ltd. KUO CHI MIN Investment Co., Ltd. (Note) Nai Yi Entertainment Company Ltd.	Subsidiary Entities with significant influence on the Company Subsidiary of the entity with significant influence on the Company Subsidiary of the entity with significant influence on the Company Subsidiary of the entity with significant influence on the Company Subsidiary of the entity with significant influence on the Company Subsidiary of the entity with significant influence on the Company Subsidiary of the entity with significant influence on the Company Subsidiary of the entity with significant influence on the Company Associates Substantive related party Substantive related party Substantive related party Substantive related party Substantive related party Substantive related party Substantive related party Substantive related party

(Note) Formerly known as Ta Yih Investment Co., Ltd., the company changed its name to KUO CHI MIN Investment Co., Ltd., which was approved by the competent authority on December 2, 2022.

~47~

(2) Significant related party transactions

A. Operating revenue:

nificant related party transactions Operating revenue:
Sales of goods: Koito Manufacturing Co., Ltd. Associates Subsidiaries of the entity with significant influence on the Company Substantive related parties	2023 2022 559,039 $ 595,705 $ 7,679 46,312 73,642 84,643 1,516 77 641,876 $ 726,737 $ Forthe years endedDecember31,
		726,737 $

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. Except for Koito Manufacturing Co., Ltd., which the payment is received within 2 months of monthly settlement, and for associate which the payment is received within 4 to 6 months of monthly settlement, the collection term of export sales with related parties according to the term of individual transaction, which is normally 90 days, and the collection term does not have substantive difference compared to non-related parties.

B. Purchases:

to non-related parties. Purchases:
Purchases of goods: Enities with significant influence on the Company Associates Subsidiaries of the entity with significant influence on the Company Substantive related parties	Forthe years endedDecember31,
	2023 258,480 $ 19,271 11,199 6,060 295,010 $	2022
		195,402 $ 42,505 3,426 8,067
		249,400 $

The price of goods purchased do not have substantive difference between related and non-related parties. Except for the associate which the payment is paid within 4 months of monthly settlement, 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.

~48~

C. Receivables from related parties:

C. Receivables from related parties:
		December31,2023		December	31,2022
Accounts receivable:
Koito Manufacturing Co., Ltd.	$		67,011	$	99,599
Subsidiaries of the entity with significant influence on the Company			26,353		18,669
Associates			2,281		29,910
Substantive related parties			1,409		-
			97,054		148,178
Less: Allowance for uncollectible accounts	(		102)	(	1,754)
	$		96,952	$	146,424
Other receivables:
Fuzhou Koito Ta Yih Automotive
Lamp Co., Ltd.	$		3,268	$	9,558
Substantive related parties			173		84
Subsidiaries of the entity with significant
influence on the Company			-		48
	$		3,441	$	9,690
The outstanding trade receivables from related	parties are unsecured.
D. Prepayments:
		December31,2023		December	31, 2022
Prepayments:
Enities with significant influence
on the Company	$		170	$	110
E. Contract liabilities:
		December31,2023		December	31,2022
Deferred revenue:
Subsidiaries of the entity with significant
influence on the Company	$		-	$	2,317
F. Payables to related parties:
		December31,2023		December	31,2022
Accounts payable:
Enities with significant influence	$		50,585	$	49,605
on the Company
Associates			2,329		14,227
Substantive related parties			1,256		2,764
Subsidiaries of the entity with significant
influence on the Company			-		26
	$		54,170	$	66,622

~49~

Other payables: Koito Manufacturing Co., Ltd. Substantive related parties Associate	December31,2023 December31,2022 46,553 $ 44,808 $ - 934 - 132 46,553 $ 45,874 $

The outstanding trade payables from related parties are unsecured.

• G. Lease transactions - lessee

• (a)The Company leases plants from Ta Yih Kenmos Auto Part Co., Ltd. Rental contracts are typically made for periods from April 1, 2022 to March 31, 2027. Rents are determined by reference to market prices and are paid monthly starting from the first day of lease.

• i.In April 2022, the Company recognized the additions to right-of-use assets amounting to $40,738 due to the above lease transactions.

• ii. The carrying amount of lease liabilities recognized by the Company as of December 31, 2023 and 2022 was $26,740 and $34,752, respectively. Interest expense recognized for the years ended December 31, 2023 and 2022 were $388 and $314, respectively.

• (b)The Company leases offices from Ta Yih Kenmos Auto Part Co., Ltd. Rental contracts are typically made for periods from May 1, 2023 to April 30, 2024. Rents are determined by reference to market prices and are paid monthly starting from the first day of lease. For the year ended December 31, 2023, the Company recognized rent expense amounting to $800 due to the above lease transactions.

• H. Other transactions with related parties

• (a) Royalty expenses

  • The Company entered into a royalty expense contract with the entity 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 $86,333 and $81,842 for the years ended December 31, 2023 and 2022, respectively (listed as “operating costs’ and ‘operating expenses”).

• (b) Royalty revenue

  • i. 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 $11,426 and $30,153 for the years ended December 31, 2023 and 2022, respectively (listed as “other income”). According to the contract, 50% of the royalty revenue should be paid to the entity with significant influence

    • Koito Manufacturing Co., Ltd. which amounted to $4,567 and $10,221 for the years

~50~

ended December 31, 2023 and 2022, respectively (listed as “other gains and losses”).

• ii. The Company entered into a contract with the 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 $3,473 and $5,177 for the years ended December 31, 2023, and 2022, respectively (listed as “other income”).

(3) Significant related party transactions

Significant related party transactions
		For the years ended		December 31,
		2023		2022
Salaries and other short-term	$	9,241	$		9,443
employee benefits
Post-employment benefits		71			130
	$	9,312	$		9,573

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

8. Pledged Assets

None.

9. Significant Contingent Liabilities and Unrecognized Contract Commitments

As of December 31, 2023 and 2022, the balances for contracts that the Company entered into but not yet paid are $5,854 and $461, respectively.

10. Significant Disaster Loss

None.

11. Significant Events after the Balance Sheet Date

None.

12. Others

(1) Capital management

The Company’s objectives when managing capital are to safeguard the Company’s ability to continue as a going concern in order to provide returns for shareholders and to maintain an optimal capital structure to reduce the cost of capital. The capital structure of the Company consists of net liabilities (borrowings offset by cash) and the equity, and the Company is not subject to any externally imposed capital requirements.

~51~

(2) Financial instruments

A. Financial instruments by category

Financial assets Financial assets at amortized cost Cash and cash equivalents Financial assets at amortized cost Notes receivable Accounts receivable Other receivables Guarantee deposits paid Financial liabilities Financial liabilities at amortized cost Short-term borrowings Notes payable Accounts payable Other payables Guarantee deposits received (listed as “other non-current liabilities”) Lease liabilities (including current portion)		December31,2023 382,731 $ - 9,086 779,624 30,353 7,794 1,209,588 $ December31,2023		December31,2022 154,018 $ 5,600 416 831,864 15,271 7,577 1,014,746 $ December31,2022
		210,000 $ 92,641 736,966 234,316 240 1,274,163 $ 41,786 $		300,000 $ 78,300 595,144 218,873 240 1,192,557 $ 38,826 $

B. Financial risk management policies

• (a)The Company’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk and interest rate risk), credit risk and liquidity risk.

(b)Risk management is carried out by a central treasury department (Company treasury) under policies approved by the Board of Directors. Company treasury identifies, evaluates and hedges financial risks in close cooperation with the Company’s operating units. The Board provides written principles for overall risk management, as well as written policies covering specific areas and matters, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments.

~52~

• C. Significant financial risks and degrees of financial risks

• (a)Market risk

  • Foreign exchange risk

  • i. The Company operates internationally and is exposed to foreign exchange risk arising from the transactions of the Company and its subsidiaries used in various functional currency, primarily with respect to the USD, CNY and JPY. Foreign exchange risk arises from future commercial transactions and recognized assets and liabilities.

  • ii. Management has set up a policy to require group companies to manage their foreign exchange risk against their functional currency. The companies are required to hedge their entire foreign exchange risk exposure with the Group treasury. Foreign exchange risk arises when future commercial transactions, recognized assets or liabilities are denominated in a currency that is not the entity’s functional currency.

  • iii. The Company’s businesses involve some non-functional currency operations (the Company’s functional currency: NTD). The information on assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations is as follow:

(Foreign currency: functional currency) Financial assets Monetary items USD:NTD CNY:NTD JPY:NTD Financial liabilities Monetary items USD:NTD CNY:NTD JPY:NTD	Foreign currency amount (in thousands) Exchange rate 17,923 $ 30.71 2,548 4.327 683,264 0.2172 1,383 30.71 4,196 4.327 259,658 0.2172 December31,2023	Book value (NTD)
		550,329 $ 11,027 148,405 42,455 18,158 56,398

~53~

December 31, 2022

			Decemb	er31,2022
	Foreign currency
		amount				Book value
		(in thousands)	Exchange rate			(NTD)
(Foreign currency:
functional currency)
Financial assets
Monetary items
USD:NTD	$	10,401		30.71	$	319,423
CNY:NTD		10,983		4.408		48,415
JPY:NTD		564,394		0.2324		131,165
Financial liabilities
Monetary items
USD:NTD		193		30.71		5,936
CNY:NTD		5,732		4.408		25,267
JPY:NTD		242,889		0.2324		56,447

The sensitivity analysis of foreign exchange risk mainly focuses on the foreign currency monetary items at the end of the financial reporting period. If the exchange rate of NTD to all foreign currencies had appreciated or depreciated by 1% with all other variables held constant, the Company’s profit, net of tax for the years ended December 31, 2023 and 2022 would have increased/decreased by $4,742 and $3,291, respectively.

• iv. The total exchange gain, including realized and unrealized, arising from significant foreign exchange variation on the monetary items held by the Company for the years ended December 31, 2023 and 2022, amounted to $20,118 and $103,517, respectively.

Price risk

The Company has not engaged in financial instrument or derivatives investment, hence is not exposed to significant market risk of price fluctuations.

Cash flow and fair value Interest rate risk

• i. The Company’s certain borrowings are financial instruments at floating rates. Thus, future cash flows fluctuate due to changes in market interest rates and further changes in effective rates of debt instruments. However, risk is partially offset by cash and cash equivalents held at variable rates and borrowings issued at fixed rates expose the Company to fair value interest rate risk.

~54~

• ii. If the borrowing interest rate had increased/decreased by 1% with all other variables held constant, profit, net of tax for the years ended December 31, 2023 and 2022 would have decreased/increased by $1,680 and $2,400, respectively. The main factor is that changes in interest expense result from floating rate borrowings.

• (b)Credit risk

• i. Credit risk refers to the risk of financial loss to the Company arising from default by the clients or counterparties of financial instruments on the contract obligations. The main factor is that counterparties could not repay in full the accounts receivable based on the agreed terms.

• ii. The Company manages their credit risk taking into consideration the entire entity’s concern. According to the Company’s credit policy, each local entity in the Company is responsible for managing and analyzing the credit risk for each of their new clients before standard payment and delivery terms and conditions are offered. Internal risk control assesses the credit quality of the customers, considering their financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings in accordance with limits set by the Board of Directors. The utilization of credit limits is regularly monitored.

• iii. The Company adopts the management of credit risk, if the contract payments were past due over 90 days based on the terms, there has been a significant increase in credit risk on that instrument. the default occurs when the contract payments are past due over 365 days. In addition, the default occurs after the Company initiates recourse procedures. However, the Company will continue executing the recourse procedures to secure their rights.

• iv. The Company’s credit risks are deemed significantly concentrated since the credit risks are mainly concentrated in the top three customers of the Company. The Company classifies customer’s notes and accounts receivable in accordance with credit rating of customer. The Company applies the modified approach using a provision matrix based on the loss rate methodology to estimate the expected credit loss and uses the forecast ability to adjust historical and timely information to assess the default possibility of notes and accounts receivable. On December 31, 2023 and 2022, the provision matrix is as follows:

~55~

No indication of default of debtor

==> picture [430 x 248] intentionally omitted <==

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

Up to 90 Individual
December 31, 2023 Not past due days past due identification Total
Rate 0% ～ 0.13% 0.1%～100% 50%～100%
$ 781,582 $ 5,945 $ 6,543 $ 794,070
Total book value
Loss allowance ( 995) ( 390) ( 3,975) ( 5,360)
$ 780,587 $ 5,555 $ 2,568 $ 788,710
No indication of default of debtor
Up to 60 Individual
December 31, 2022 Not past due days past due identification Total
Rate 0% ～ 0.06% 0.1%～100% 30%～100%
$ 804,411 $ 23,037 $ 12,363 $ 839,811
Total book value
Loss allowance ( 516) ( 576) ( 6,439) ( 7,531)
$ 803,895 $ 22,461 $ 5,924 $ 832,280
----- End of picture text -----

• v. Movements in relation to the Company applying the modified approach to provide loss allowance for notes receivable accounts receivable (including related parties) are as follows:

follows:
			Forthe years ended		December31,
			2023		2022
January 1		$	7,531	$	7,531
Expected credit gains	(		2,171)		-
December 31		$	5,360	$	7,531

• (c)Liquidity risk

• i. Cash flow forecasting is performed in the operating entities of the Company and aggregated by the Company’s Finance Department. Company’s Finance Department monitors rolling forecasts of the Company’s liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times so that the Company does not breach borrowing limits or covenants on any if its borrowing facilities.

• ii. Surplus cash held by the operating entities over and above balance required for working capital management are transferred to the Company’s Finance Department. The Company’s Finance Department invests surplus cash in interest bearing current accounts and time deposits, choosing instruments with appropriate maturities or sufficient liquidity to provide sufficient headroom as determined by the above-mentioned forecasts, that are expected to readily generate cash inflows for managing liquidity risk.

~56~

iii. The Company has the following undrawn borrowing facilities:

Floating rate: Expiring within one year	December31,2023 1,062,820 $	December31,2022 1,280,000 $

iv. The table below analyses the Company’s non-derivative financial liabilities and relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows.

undiscounted cash flows.
December 31, 2023	Less than 1year	Between 1 and2years	Between 2 and 5 years		Over 5 years - $ - - - 188 - Between 2 and 5 years
Non-derivative financial liabilities: Short-term borrowings Notes payable Accounts payable (including related parties) Other payables (including related parties) Lease liabilities Guarantee deposits received December 31, 2022	210,510 $ 92,641 736,966 234,316 14,285 -	- $ - - - 13,168 240 Less than 1year	- $ - - - 15,228 - Between 1 and2years
Non-derivative financial liabilities: Short-term borrowings Notes payable Accounts payable (including related parties) Other payables (including related parties) Lease liabilities Guarantee deposits received		300,074 $ 78,300 595,144 218,873 11,133 -	- $ - - - 9,426 240		- $ - - - 19,263 -

v. The Company does not expect the timing of occurrence of the cash flows estimated through the maturity date analysis will be significantly earlier, nor expect the actual cash flow amount will be significantly different.

~57~

(3) Fair value information

• A. The different levels that the inputs to valuation techniques are used to measure fair value of financial and non-financial instruments have been defined as follows:

• Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. A market is regarded as active where a market in which transactions for the asset or liability take place with enough frequency and volume to provide pricing information on an ongoing basis.

• Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

• Level 3: Unobservable inputs for the asset or liability.

• B. The carrying amounts of the financial instruments which are not measured at fair value (including cash and cash equivalents, financial assets at amortized cost - current, notes receivable, accounts receivable (including related parties), other receivables (including related parties), guarantee deposits paid, short-term borrowings, notes payable, accounts payable (including related parties), other payables (including related parties) and guarantee deposits received are approximate to their fair values.

13. Supplementary Disclosures

(According to the current regulatory requirements, the Company is only required to disclose the information for the year ended December 31, 2023)

(1) Significant transactions information

• A. Loans to others: None.

• B. Provision of endorsements and guarantees to others: None.

• C. Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures): None.

• D. Acquisition or sale of the same security with the accumulated cost reaching $300 million or 20% of the Company’s paid-in capital: None.

• E. Acquisition of real estate reaching $300 million or 20% of the Company’s paid-in capital: None.

• F. Disposal of real estate reaching $300 million or 20% of the Company’s paid-in capital: None.

• G. Purchases or sales of goods from or to related parties reaching $100 million or 20% of the Company’s paid-in capital: Refer to table 1.

• H. Receivables from related parties reaching $100 million or 20% of the Company’s paid-in capital: None.

• I. Trading in derivative instruments undertaken during the reporting periods: None.

• J. Significant inter-company transactions during the reporting periods: None.

~58~

(2) Information on investees

Names, locations and other information of investee companies (not including investees in Mainland China) ： Refer to table 2.

• (3) Information on investments in Mainland China

  • A. Basic information: Refer to table 3.

  • B. Significant transactions with investee companies in Mainland China, either directly or indirectly through a third area: Refer to table 4.

• (4) Information on major shareholders

  • Information on major shareholders: Refer to table 5.

• Segment Information

Not applicable.

~59~

TA YIH INDUSTRIAL CO., LTD. STATEMENT OF CASH AND CASH EQUIVALENTS DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

Item Description Cash: Cash on hand Checking accounts and revolving funds Demand deposits-NTD -Foreign currency USD 5,260 thousand @ 30.71 CNY 778 thousand @ 4.327 EUR 387 thousand @ 33.98 JPY 374,285 thousand @ 0.2172 Cash equivalents: Time deposits-Foreign currency USD 2,000 thousand @ 30.71 Maturity date: January 19, 2024 Annual interest rate: 5.20%	Amount
	750 $ 1,145 60,102 259,324
	321,321
	61,410
	382,731 $

~60~

TA YIH INDUSTRIAL CO., LTD. STATEMENT OF ACCOUNTS RECEIVABLE, NET DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

Clientname Company A Company B Company C Others (less than 5%) Less: Allowance for uncollectible accounts	Description Amount Note Accounts receivable 256,198 $ － Accounts receivable 253,671 － Accounts receivable 38,712 － Accounts receivable 139,338 － 687,919 5,247) ( 682,672 $

~61~

TA YIH INDUSTRIAL CO., LTD. STATEMENT OF ACCOUNTS RECEIVABLE - RELATED PARTIES, NET DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

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

Client name Description Amount Note
----- End of picture text -----

Koito Manufacturing Co., Ltd.	Accounts receivable		$	67,011	－
NAL DO BRASIL	Accounts receivable			25,595	－
INDUSTRIA E
COMERCIO DE
COMPONENTES DE
ILUMINACAO LTDA
Others (less than 5%)	Accounts receivable			4,448	－
				97,054
Less: Allowance for uncollectible accounts		(		102)
			$	96,952

~62~

TA YIH INDUSTRIAL CO., LTD. STATEMENT OF INVENTORIES DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

Item Raw materials Work in progress Finished goods Merchandise	Description － － － －	Cost NetRealizable Value 365,382 $ 369,955 $ 68,274 75,205 603,030 768,017 47,966 51,627 1,084,652 $ 1,264,804 $ Amount	Note
		Cost 365,382 $ 68,274 603,030 47,966 1,084,652 $
			(Note) (Note) (Note) (Note)

(Note) Refer to Note 4(10) ‘Inventories’ of parent company only financial statements for

the method to determine the net realizable value.

~63~

TA YIH INDUSTRIAL CO., LTD. STATEMENT OF CHANGES IN PROPERTY, PLANT AND EQUIPMENT - COST FOR THE YEAR ENDED DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

[Refer to Note 6(6) ‘Property, plant and equipment’ of parent company only financial statements.]

~64~

TA YIH INDUSTRIAL CO., LTD. STATEMENT OF CHANGES IN PROPERTY, PLANT AND EQUIPMENT - ACCUMULATED DEPRECIATION FOR THE YEAR ENDED DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

Refer to Note 6(6) ‘Property, plant and equipment’ of parent company only financial statements for the change in accumulated depreciation of property, plant and equipment. Refer to Note 4(12) ‘Property, plant and equipment’ of parent company only financial statements for the depreciation method and useful lives for assets.

~65~

TA YIH INDUSTRIAL CO., LTD. STATEMENT OF CHANGES IN RIGHT-OF-USE ASSETS - COST FOR THE YEAR ENDED DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

Item Buildings Office equipment Transportation equipment	Balance as of January 1, 2023 Increase Decrease Balance as of December 31, 2023 Footnote 40,738 $ 2,819 $ - $ 43,557 $ － 2,743 3,184 2,743) ( 3,184 － 11,563 15,051 4,936) ( 21,678 － 55,044 $ 21,054 $ 7,679) ($ 68,419 $

~66~

TA YIH INDUSTRIAL CO., LTD.

STATEMENT OF CHANGES IN RIGHT-OF-USE ASSESTS - ACCUMULATED DEPRECIATION FOR THE YEAR ENDED DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

Item Buildings Office equipment Transportation equipment	Balance as of January 1, 2023 Increase Decrease Balance as of December 31, 2023 6,111 $ 8,288 $ - $ 14,399 $ 1,697 529 1,872) ( 354 8,586 4,708 4,936) ( 8,358 16,394 $ 13,525 $ 6,808) ($ 23,111 $	Note
		－ － －

~67~

TA YIH INDUSTRIAL CO., LTD. STATEMENT OF SHORT-TERM BORROWINGS DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

Nature Description Unsecured borrowings Chang Hwa Comercial Bank	December31,2023 210,000 $	Period of contract	Range of interest rate 1.70%	Credit facility 300,000 $	Collateral None	Note
		2023.10.18~2024.2.25				－

~68~

TA YIH INDUSTRIAL CO., LTD. STATEMENT OF NOTES PAYABLE DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

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

Vendor Name Description Amount Footnote
----- End of picture text -----

Company D Notes payable Others (less than 5%) Notes payable	80,547 $ － 12,094 － 92,641 $

~69~

TA YIH INDUSTRIAL CO., LTD. STATEMENT OF ACCOUNTS PAYABLE DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

SupplierName Description Amount Company E Accounts payable 52,642 $ Company F Accounts payable 81,836 Company G Accounts payable 66,794 Others (less than 5%) Accounts payable 481,524 682,796 $	Note
	－ － －

~70~

TA YIH INDUSTRIAL CO., LTD. STATEMENT OF ACCOUNTS PAYABLE – RELATED PARTIES DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

SupplierName Koito Manufacturing Co., Ltd. Others (less than 5%)	Description Accounts payable Accounts payable	Amount 50,585 $ 3,585 54,170 $	Note
			－ －

~71~

TA YIH INDUSTRIAL CO., LTD. STATEMENT OF OTHER PAYABLES DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

Refer to Note 6(9) ‘Other payables’ of parent company only financial statements.

~72~

TA YIH INDUSTRIAL CO., LTD. STATEMENT OF OTHER PAYABLES – RELATED PARTIES DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

Supplier Name Description Amount Note － Koito Manufacturing Co., Ltd. Payables for royalty $ 46,553

~73~

TA YIH INDUSTRIAL CO., LTD. STATEMENT OF CURRENT INCOME TAX LIABILITIES DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

Item	Description		Amount	Note
Corporate income tax payable	－	$	55,227	－
Income tax payable on undistributed earnings	－		1,860	－
		$	57,087

~74~

TA YIH INDUSTRIAL CO., LTD. STATEMENT OF OTHER CURRENT LIABILITIES DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

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

Item Description Amount Note
----- End of picture text -----

Refund liabilities － Others (less than 5%) －	46,969 $ － 552 － 47,521 $

~75~

TA YIH INDUSTRIAL CO., LTD. STATEMENT OF CHANGES IN DEFERRED TAX LIABILITIES FOR THE YEAR ENDED DECEMBER 31, 2023 (Expressed in thousands of New Taiwan dollars)

Refer to Note 6(21) ‘Income tax’ of parent company only financial statements.

~76~

TA YIH INDUSTRIAL CO., LTD. STATEMENT OF LEASE LIABILITIES DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

Item	Description Lease period Discountrate － 2022.4.1~2028.9.5 1.25%~2.09% － 2023.5.1~2029.4.30 2.09% － 2021.3.8~2026.11.30 1.05%~2.09% Less: Current portion	Discountrate	Balance as of December31,2023 29,425 $ 2,849 9,512 41,786 $ 13,745) ( 28,041 $	Note
Buildings Office equipment Transportation equipment				－ － －

~77~

TA YIH INDUSTRIAL CO., LTD. STATEMENT OF CHANGE IN NET DEFINED BENEFIT LIABILITIES DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

Refer to Note 6(10) ‘Pensions’ of parent company only financial statements.

~78~

TA YIH INDUSTRIAL CO., LTD. STATEMENT OF OPERATING REVENUE FOR THE YEAR ENDED DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

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

Amount
Item Quantity Subtotal Total Note
Sales:
－
Car lamps 17,137 thousands $ 4,111,526
－
Molds 229 321,864
－
Others 409,687
$ 4,843,077
－
Less: Sales returns ( 11,277)
－
Sales discounts and allowances ( 14,796)
$ 4,817,004
----- End of picture text -----

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TA YIH INDUSTRIAL CO., LTD. STATEMENT OF OPERATING COSTS FOR THE YEAR ENDED DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

Item			Amount
Merchandise at January 1, 2023		$	38,668
Add: Merchandise purchased			205,664
Less: Transferred to expenses	(		141)
Transferred to equipments	(		13,077)
Other adjustments	(		1,705)
Merchandise at December 31, 2023	(		47,966)
Merchandise used during the year			181,443
Raw materials at January 1, 2023			273,410
Add: Raw materials purchased			2,574,443
Less: Transferred to expenses	(		26,779)
Sale of raw materials	(		316,216)
Scrapped	(		2,011)
Loss for market price decline and obsolete and slow-moving inventories	(		4,246)
Raw materials at December 31, 2023	(		365,382)
Raw materials used during the year			2,133,219
Direct labor			227,982
Manufacturing overhead			607,578
Manufacturing cost			2,968,779
Work in progress at January 1, 2023			119,236
Work in progress at December 31, 2023	(		68,274)
Cost of finished goods			3,019,741

~80~

TA YIH INDUSTRIAL CO., LTD. STATEMENT OF OPERATING COSTS (Cont.) FOR THE YEAR ENDED DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

Finished goods at January 1, 2023		$	521,470
Add: Gain from price recovery of inventory			1,770
Finished goods purchased			699,239
Less: Other adjustments	(		34)
Transfer to expenses	(		9,760)
Transfer to equipments	(		24,784)
Scrapped	(		11,128)
Finished goods at December 31, 2023	(		603,030)
Cost of production and marketing			3,593,484
Sale of cost of raw materials			316,216
Cost of goods sold			4,091,143
Loss on scrapped inventories			13,139
Provision for inventory market price decline			2,476
Less: Income from sale of scrap	(		2,860)
Operating costs		$	4,103,898

~81~

TA YIH INDUSTRIAL CO., LTD. STATEMENT OF MANUFACTURING OVERHEAD FOR THE YEAR ENDED DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

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

Item Description Amount Footnote
－ －
Wages and salaries $ 183,988
－ －
Depreciation 132,061
－ －
Royalty 79,226
－ －
Utilities 79,118
－ －
Repair and maintenance 22,421
－ －
Insurance 19,165
－ －
Others (less than 3%) 91,599
$ 607,578
----- End of picture text -----

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TA YIH INDUSTRIAL CO., LTD. STATEMENT OF SELLING EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

Item Import/Export Freight Wages and salaries Professional service Others (less than 3%)	Description － － － － －	Amount 116,771 $ 17,511 14,728 5,853 33,786 188,649 $	Footnote
			－ － － － －

~83~

TA YIH INDUSTRIAL CO., LTD. STATEMENT OF GENERAL AND ADMINISTRATIVE EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

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Item Description Amount Footnote
－ －
Wages and salaries $ 70,238
－ －
Depreciation 13,264
－ －
Professional service 10,512
－ －
Royalty 7,111
－ －
Insurance 6,559
－ －
Repair and maintenance 4,847
－ －
Others (less than 3%) 41,161
$ 153,692
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TA YIH INDUSTRIAL CO., LTD. STATEMENT OF RESEARCH AND DEVELOPMENT EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

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Item Description Amount Footnote
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Wages and salaries － Examination － Software － Insurance － Others (less than 3%) －	95,220 $ － 28,483 － 17,821 － 9,366 － 21,378 － 172,268 $

~85~

TA YIH INDUSTRIAL CO., LTD. STATEMENT OF SUMMARY OF EMPLOYEE BENEFITS, DEPRECIATION, AND AMORTIZATION EXPENSES IN THE CURRENT PERIOD FOR THE YEAR ENDED DECEMBER 31, 2023

(Expressed in thousands of New Taiwan dollars)

Refer to Note 6(19) ‘Expense by nature’ and Note 6(20) ‘Employee benefit expense’ of parent company only financial statements.

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TA YIH INDUSTRIAL CO., LTD.

' - Purchases or sales transactions with related parties reaching $100 million or 20% of the Company s paid in capital For the year ended December 31, 2023 Table 1

				For the year ended December 31, 2023	For the year ended December 31, 2023
Purchases/sales company Table 1	Name ofthe counterparty	Relationship		Descriptionoftransaction			Description and reasons for difference in transaction terms compared to non-related party		Percentage of notes or accounts Amount receivable/(payable) Note Expressed in thousands of NTD Notes or accounts receivable/(payable)
			Purchases/(sales)	Amount	Percentage of net purchases/(sales)	CreditPeriod	UnitPrice	CreditPeriod	Amount	Percentage of notes or accounts receivable/(payable)
Ta Yih Industrial Co., Ltd.	Koito Manufacturing Co., Ltd.	Entities with significant influence on the Group	(Sales) Purchases	559,039) ($ 258,480	(12%) 7%	2 months 3 months	Not significantly different Not significantly different	Not significantly different Not significantly different	67,011 $ 50,585) (	9% (6%)	- -

Table 1, Page 1

Information on investees

For the year ended December 31, 2023

Expressed in thousands of NTD

TA YIH INDUSTRIAL CO., LTD.

Table 2

Investor	Investee	Location	Main Businesses	Original investment amount	Original investment amount	Holdings	tatus as of December31,2023	tatus as of December31,2023	Net income (loss) of the investee	Investment income (loss) recognized by theCompany	Note
				Balance as of December31,2023	Balance as of December 31, 2022 (Note 1)	Shares	Percentage of ownership	Bookvalue
Ta Yih Industrial Co., Ltd.	Ta Yih International Investment Co., Ltd. (BVI)	British Virgin Islands	General investments	10,749 $	1,536 $	350,000	100.00	7,618 $	2,445) ($	2,445) ($	Subsidiary (Note 2)

• (Note 1) Represents the original investment amount as of December 31, 2022.

• (Note 2) The capital increase procedure was completed in November 2023.

(Note 3) Foreign currencies were translated into New Taiwan Dollars using the exchange rates as of report date as follows: USD:NTD 1:30.71.

Table 2, Page 1

Information on investments in Mainland China - Basic information

For the year ended December 31, 2023

TA YIH INDUSTRIAL CO., LTD.

Table 3

Expressed in thousands of NTD

Amount remitted from Taiwan Accumulated to Mainland China/ amount of Accumulated amount Amount remitted back to Taiwan investment of remittance from for the year ended Investment income remitted Taiwan to Mainland December 31, 2023 Accumulated amount Percentage of income (loss) Book value of back to Taiwan China as of Remitted to Remitted of remittance from ownership held recognized by investments as of Investment January 1, 2023 Mainland back to Taiwan as of Net income (loss) by the Company the Company as of December 31, 2023 Investee in Mainland China Main Businesses Paid-in capital Method (Note 3) China Taiwan December 31, 2023 of the investee (direct or indirect) (Note 4) December 31, 2023 (Note 5) Note Fuzhou Koito Ta Yih Automotive Import, export and $ 276,390 (Note 1) $ 42,470 $ - $ - $ 42,470 ($ 843,177) 49.00 ($ 173,905) $ - $ 238,605 (Note 2) Lamp Co., Ltd. sale of automobile lamps in mainland China

Companyname	Accumulated amount of remittance from Taiwan to Mainland China as of December31,2023	Investment amount approved by the Investment Commission of the Ministry of Economic Affairs (MOEA) (Note2)	Ceiling on investments in Mainland China imposed by the Investment Commission of MOEA (Note 6)
Ta Yih Industrial Co., Ltd.	42,470 $	135,431 $	1,063,923 $

• (Note 1) 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.

(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, 2023, 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 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 4) The Company recognized investment income (loss) based on audited financial statements. Since the net worth of investee had been negative, the book value of investment was recognized to not less than zero.

• (Note 5) Inward cash dividends.

• (Note 6) The ceiling amount is 60% of higher of consolidated net worth or net worth according to “Principle of Investment or Technical Cooperation in Mainland China” issued by the Investment Commission, MOEA.

(Note 7) Foreign currencies were translated into New Taiwan Dollars using the exchange rates as of report date as follows: USD:NTD 1:30.71, except for net income (loss) of the investee and investment income (loss) recognized by the Company.

Table 3, Page 1

TA YIH INDUSTRIAL CO., LTD.

Table 4

Expressed in thousands of NTD

Significant transactions with investee companies in Mainland China, either directly or indirectly through a third area For the year ended December 31, 2023

Investeein Mainland China	Relationship with the Company	Transactiontype	Amount		Transactionterms		Notes/accounts receivable (payable)	Notes/accounts receivable (payable)	Unrealized gain	Note
				Price	Payment terms	Compared to non-related party transactions	Balance	%
Fuzhou Koito Ta Yih Automotive Lamp Co., Ltd.	Associates	Sales Purchases Royalty revenue	7,679 $ 19,271 11,426	Cost plus pricing Not significantly different from normal transactions According to the contract	Four to six months Four months Every half-year	Three months Three months No similar transactions availabe for comparison	2,281 $ 2,329 3,268	－ － 11%	730 $ - -	－ － －

Table 4, Page 1

TA YIH INDUSTRIAL CO., LTD. Information on major shareholders

December 31, 2023

Table 5

Name of major shareholders	Shares	Shares
	Number of shares held	OwnershipPercentage
Koito Manufacturing Co., Ltd. Ta Wei Investment Co., Ltd.	24,774,750 20,797,622	32.50% 27.28%

(Note 1) The major shareholders information was derived from the data that the Company issued common shares (including treasury shares) and preference shares in dematerialized form which were registered and held by the shareholders above 5% on the last operating date of each quarter and was calculated by Taiwan Depository & Clearing Corporation.

The share capital on the financial statements may differ from the actual number of shares issued in dematerialized form because of a different calculation 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.

Table 5, Page 1