TMC — Annual Report 2022

Dec 29, 2022

Taiwan Mask Corporation and Subsidiaries Consolidated financial statements and independent auditor’s report 2022 and 2021 (Stock Code: 2338)

Company address: No. 11, Chuangxin 1st Road, Baoshan, Hsinchu County, Hsinchu Science Park

Telephone: (03)563-4370

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Taiwan Mask Corporation and Subsidiaries

2022 and 2021 Consolidated Financial Statements and Accounting Auditor's Report

Table of Contents

Items	Page
I. Cover	1
II. Table of Contents	2 ~ 3
III. Statement	4
IV. Independent Auditors’ Report	5 ~ 10
V. Consolidated Balance Sheets	11 ~ 12
VI. Consolidated Statement of Comprehensive Income	13 ~ 14
VII. Consolidated Statement of Changes in Equity	15
VIII. Consolidated Statement of Cash Flows	16 ~ 17
IX. Notes to the Consolidated Financial Statements	18 ~ 79
(I) Company History	18
(II) Date and procedures for passing the financial statement	18
(III) Application of New and Revised International Financial Reporting
Standards	18 ~ 19
(IV) Summary of Significant Accounting Policies	19 ~ 34
(V) Critical Accounting Judgments and Key Sources of Estimation and
Uncertainty	34 ~ 35
(VI) Summary of Significant Accounting Items	35 ~ 67

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Items	Page
(VII) Related Party Transactions	67 ~ 69
(VIII) Pledged Assets	69 ~ 70
(IX) Significant Contingent Liabilities and Unrecognized Contract
Commitments	70
(X) Losses due to major disasters	70
(XI) Major Events after Financial Statement Date	70
(XII) Others	70 ~ 81
(XIII) Supplementary Disclosure	81
(XIV) Segments Information	81 ~ 83

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Taiwan Mask Corporation

Consolidated Financial Statements Declaration

The companies that are required to be included in the affiliated companies consolidated financial statements as of and for the year ended on December 31, 2022, under the “Criteria Governing the Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises” are the same as those included in the consolidated financial statements of parent company and subsidiaries prepared in conformity with the International Accounting Standard 10, “Consolidated Financial Statements.” In addition, the information required to be disclosed in the affiliated companies consolidated financial statements is included in the consolidated financial statements of the aforesaid parent company and subsidiaries. Consequently, do not prepare a separate set of consolidated financial statements of the affiliated companies.

Very truly yours

Company Name: Taiwan Mask Corporation

Person in Charge: Sean Chen

March 3, 2023

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Independent Auditors’ Report

(112) Tsai-Sheng-Bao-Zi No. 22004222

To Taiwan Mask Corporation,

Opinions

We have audited the accompanying consolidated balance sheets of Taiwan Mask Corporation and its subsidiaries (the “Group”) as of December 31, 2022 and 2021, and the related consolidated statements of comprehensive income, of changes in equity and of cash flows for the years ended December 31, 2022 and 2021, and notes to the consolidated financial statements, including a summary of significant accounting policies.

In our opinion, based on our audits and the reports of the other independent auditors, as described in the Other matters section of our report, the accompanying consolidated financial statements present fairly, in all material aspects, the consolidated financial position of the Group as of December 31, 2022 and 2021, and its consolidated financial performance and its consolidated cash flows for the years ended December 31, 2022 and 2021 in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the Financial Supervisory Commission.

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and auditing standards generally accepted in Taiwan. Our responsibilities under those standards are further described in the Independent Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the Code of Professional Ethics for Certified Public Accountants in the Republic of China (the “Code”), and we have fulfilled our other ethical responsibilities in accordance with the Code. Based on our audits and the reports of the other independent auditors, we believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of fiscal year 2022. These

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matters were addressed in the context of our audit of the consolidated 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 TMC Group’s consolidated financial statements in fiscal year 2022 are stated as follows:

Evaluation of Inventories

Description

Refer to Note 4(14) for the accounting policies on the evaluation of inventories, Note 5(2) for the uncertainty of accounting estimations and assumptions for evaluation of inventories, and Note 6(5) for the detailed description of inventory accounts. The inventory amount and allowance for inventory valuation loss as of December 31, 2022 were NT$515,289 thousand and NT$132,759 thousand, respectively.

The Group is primarily engaged in mask and integrated circuit services in the semiconductor industry. Due to rapid technological innovations, short life-cycle and competition within the mask industry, the risk of price fluctuations, Loss on decline in value of inventories and obsolescence is higher than that of other industries. Management evaluates inventories stated at the lower of cost and net realizable value. Since the evaluation of inventories is subject to management’s judgment and the accounting estimations will have significant influence on the inventory values, the evaluation of inventories has been identified as one of the key audit matters.

How our audit addressed the matter

We have performed primary audit procedures for the above matter as follows:

1. Understand and evaluate the accounting policy for the provision of allowance for losses on decline in value of inventories.

2. Perform test to evaluate the ageing statement of inventories and the statement of lower of cost and net realizable value of inventories, including validating the supporting documents related to the date of inventory movement to confirm the correct ageing classification, and validating the supporting documents related to the net realizable value to assess and confirm the reasonableness of the net realizable value determination.

3. Verify the reasonableness of allowance for inventory valuation loss.

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Income recognition

Description

For the accounting policy on income recognition, please refer to Note 4(29) of the financial report. For sales revenue, please refer to Note 6(22); the operating income in fiscal year 2022 was NT$7,741,118 thousand.

The Group mainly produces and sells products such as masks and integrated circuits used in semiconductors, and has a large and diversified sales base. Trading conditions vary according to market conditions and customer needs. Considering that sales revenue is a major transaction that has a significant impact on the consolidated financial statements, we believe that the recognition of sales revenue is one of the most important matters to be considered in this year's audit.

How our audit addressed the matter

We have performed primary audit procedures for the above matter as follows:

1. Understand the type of major income and assess internal operations, review revenue recognition and accounting treatment.

2. Obtain the sales revenue statement, sample the sales transactions and verify the relevant documents to determine the appropriateness of the sales revenue.

3. Execute the cut-off test for the sales receipts transaction for a certain period of time before and after the closing date, and confirm that the account is correct at the time of entry.

Other matters–Parent company only financial reports

We have audited and expressed an unmodified opinion on the parent company only standalone financial statements of Taiwan Mask Corporation as of and for the years ended December 31, 2022 and 2021.

Responsibilities of management and those charged with governance for the consolidated financial statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed

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and issued into effect by the Financial Supervisory Commission, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

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

Those charged with governance, including the Audit Committee, are responsible for overseeing the Group’s financial reporting process.

Independent Auditor’s responsibilities for the audit of the consolidated financial statements

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

As part of an audit conducted in accordance with ROC AS, we exercise professional judgment and professional skepticism throughout the audit. We also conduct the following undertakings:

1. Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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

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an opinion on the effectiveness of the Group’s internal control.

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

4. 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 Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our report. However, future events or conditions may cause the Group to cease to continue as a going concern.

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

6. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision, and performance of the group audit. We remain solely responsible for our audit opinion.

We communicated 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 for the current period.

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 2022 consolidated financial statements of the current period and are therefore deemed 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 auditor’s report because the adverse consequences of doing so would reasonable are expected to outweigh the public interest benefits of such communication.

PricewaterhouseCoopers Taiwan

Ya-Hui Cheng Accountant Chien-Yu Liu

Securities and Futures Bureau of Financial Supervisory Commission of the Executive Yuan Approval Certificate No. 0960072936 Financial Supervisory Commission of the Executive Yuan Approval Document for Attestation: Jin-GuanZheng-Shen-Zi No. 1090350620

March 3, 2023

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Taiwan Mask Corporation and Subsidiaries Consolidated Balance Sheets December 31, 2022 and 2021

Assets	Notes 6(1) 6(2) and 8 6(3) and 8 6(22) 6(4) and 7 6(4) 6(4) and 7 7 6(5) 6(2) and 8 6(3) and 8 6(6) 6(7) and 8 6(8) 6(10) and 8 6(11) 6(29) 6(12)	December31,2022 Amount % $ 1,749,957 10 1,584,598 9 160,465 1 140,231 1 1,361 - 1,501,012 8 2,346 - 13,751 - 42,652 - 382,530 2 280,245 2 44,734 - 5,903,882 33 2,896,557 16 507,602 3 124,565 1 5,883,661 33 550,611 3 170,346 1 497,180 3 9,365 - 1,349,137 7 11,989,024 67 $ 17,892,906 100	Unit: NT$Thousand December31,2021 Amount % $ 2,681,819 17 3,603,920 22 38,338 - 155,763 1 63 - 1,263,748 8 16,812 - 68,997 - 22,600 - 403,717 3 121,866 1 29,897 - 8,407,540 52 1,433,752 9 39,925 - 164,707 1 4,086,361 26 652,652 4 173,614 1 496,804 3 8,060 - 690,980 4 7,746,855 48 $ 16,154,395 100
		Amount $ 1,749,957 1,584,598 160,465 140,231 1,361 1,501,012 2,346 13,751 42,652 382,530 280,245 44,734 5,903,882 2,896,557 507,602 124,565 5,883,661 550,611 170,346 497,180 9,365 1,349,137 11,989,024 $ 17,892,906	Amount $ 2,681,819 3,603,920 38,338 155,763 63 1,263,748 16,812 68,997 22,600 403,717 121,866 29,897 8,407,540 1,433,752 39,925 164,707 4,086,361 652,652 173,614 496,804 8,060 690,980 7,746,855 $ 16,154,395
Current assets 1100 Cash and Cash Equivalents 1110 Financial Assets at Fair Value Through Profit or Loss - Current 1136 Financial Assets at Amortized Cost - Current 1140 Contract Asset - Current 1150 Notes Receivables (Net) 1170 Accounts Receivables (Net) 1180 Accounts Receivables - Related Parties (Net) 1200 Other Receivables 1220 Tax Assets 130X Inventories 1410 Prepayments 1470 Other Current Assets 11XX Total Current Assets Non-Current Assets 1510 Financial Asset at Fair Value Through Profit or Loss - Non Current 1535 Financial Assets at Amortized Cost - Non Current 1550 Investment under Equity Method 1600 Property, plant and equipment 1755 Right-of-use Asset 1760 Investment property (Net) 1780 Intangible assets 1840 Deferred Income Tax Assets 1900 Other Non-Current Assets 15XX Total Non-Current Assets 1XXX Total Assets

(Continued)

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Taiwan Mask Corporation and Subsidiaries Consolidated Balance Sheets December 31, 2022 and 2021

Liabilities and Equities

Unit: NT$Thousand December 31,2022 December 31,2021 Notes Amount % Amount % 6(13) $ 4,624,525 26 $ 4,376,766 27 6(2) 5,697 - - - 6(22) 232,778 1 179,315 1 81 - 66 - 417,175 2 477,232 3 7 284 - - - 6(14) 837,213 5 742,008 5 178,854 1 186,481 1 - - 10,964 - 32,571 - 31,758 - 6(16) 611,473 4 70,391 1 39,114 - 39,281 - 6,979,765 39 6,114,262 38 6(15) 2,609,044 14 1,657,049 10 6(16) 3,167,974 18 2,651,808 16 6(29) 121,124 1 110,989 1 527,098 3 623,883 4 16,512 - 14,999 - 34,754 - 6,908 - 2,428 - 100,646 1 6,478,934 36 5,166,282 32 13,458,699 75 11,280,544 70 6(18) 2,564,465 14 2,556,735 16 6(19) 1,251,681 8 1,315,828 8 6(20) 769,952 4 656,037 4 1,729,293 10 1,470,151 9 6(21) 10,508 - 4,032 - 6(18) ( 1,778,979) ( 10 ) ( 941,423) ( 6) 4,546,920 26 5,061,360 31 ( 112,713) ( 1 ) ( 187,509) ( 1) 4,434,207 25 4,873,851 30 9 11 $ 17,892,906 100 $ 16,154,395 100

Current liabilities 2100 Short Term Loans 2120 Financial liabilities at fair value through profit or loss - Current 2130 Contract Liabilities - Current 2150 Notes Payable 2170 Accounts Payable 2180 Accounts payable - Related party 2200 Other Payables 2230 Current Income Tax Liabilities 2250 Provision for Liabilities - Current 2280 Lease Liability - Current 2320 Long-term liabilities due within one year or one business cycle 2399 Other Current Liabilities - Other 21XX Total Current Liabilities Non-current liabilities 2530 Corporate bonds payable 2540 Long-term Loans 2570 Deferred Income Tax 2580 Lease liability - Non Current 2640 Defined Benefit Liabilities - Non Current 2645 Guarantee Deposits Received 2670 Other Non-Current Liabilities - Other 25XX Total Non-Current Liabilities 2XXX Total Liabilities Equity attributable to shareholders of the parent company Capital 3110 Capital stock Capital surplus 3200 Capital surplus Retained earnings 3310 Legal reserve 3350 Unappropriated earnings Other equity interests 3400 Other equity interests 3500 Treasury stock 31XX Total Equities Attributable to Parent Company 36XX Non-controlling Interests 3XXX Total Equities Major Commitments and Contingencies Major Events after Financial Statement Date 3X2X Total Liabilities and Equities

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

Chairman: Sean Chen

Managerial Officer: Lidon Chen Accounting Officer: Eve Yang

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Taiwan Mask Corporation and Subsidiaries Consolidated Statement of Comprehensive Income January 1 to December 31 of 2022 and 2021

Unit: NT$Thousand (Except for earnings per share)

Items

2022 2021 Notes Amount % Amount % 6(22) and 7 $ 7,741,118 100 $ 6,077,362 100 6(5) ( 5,642,493 ) ( 73) ( 4,667,982 ) ( 77) 2,098,625 27 1,409,380 23 6(27) (28) ( 209,947 ) ( 3) ( 150,235 ) ( 2) ( 375,754 ) ( 5) ( 656,228 ) ( 11) ( 254,090 ) ( 3) ( 170,245 ) ( 3) 12(2) ( 10,558 ) - 1,340 - ( 850,349 ) ( 11) ( 975,368 ) ( 16) 1,248,276 16 434,012 7 6(23) 25,271 - 4,858 - 6(24) 258,255 4 115,294 2 6(25) ( 619,247 ) ( 8) 765,676 13 6(26) ( 177,546 ) ( 2) ( 100,524 ) ( 2) 6(6) ( 61,296 ) ( 1) ( 80,385 ) ( 1) ( 574,563 ) ( 7) 704,919 12 673,713 9 1,138,931 19 6(29) ( 228,081 ) ( 3) ( 291,537 ) ( 5) $ 445,632 6 $ 847,394 14

4000 Operating revenue 5000 Operating costs 5900 Gross profit Operating expenses 6100 Selling Expenses 6200 Administrative Expenses 6300 R&D Expenses 6450 Expected Credit Impairment (Loss) Gain 6000 Total Operating Expenses 6900 Operating profit Non-operating income and expenses 7100 Interest income 7010 Other Incomes 7020 Other Gains and Losses 7050 Financial Costs 7060 The share of affiliates and joint venture profits and losses recognized by the equity method 7000 Total Non-Operating Incomes and Losses 7900 Earnings Before Tax 7950 Income Tax Expense 8200 Net Income

(Continued)

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Taiwan Mask Corporation and Subsidiaries Consolidated Statement of Comprehensive Income January 1 to December 31 of 2022 and 2021

Unit: NT$Thousand (Except for earnings per share)

Items

2022 2021 Notes Amount % Amount % ($ 2,656) - $ 1,189 - ( 2,656) - 1,189 - 6(21) 6,476 - 3,143 - 6,476 - 3,143 - $ 3,820 - $ 4,332 - $ 449,452 6 $ 851,726 14 $ 703,519 9 $ 1,146,610 19 ( 257,887) ( 3)( 299,216)( 5) $ 445,632 6 $ 847,394 14 $ 707,339 9 $ 1,150,942 19 ( 257,887) ( 3)( 299,216)( 5) $ 449,452 6 $ 851,726 14 6(30) $ 3.37 $ 5.47 6(30) $ 3.12 $ 5.37

Other Comprehensive Incomes (Net) Components of other comprehensive income that will not be reclassified to profit or loss 8311 Re-measurements of defined benefit plan 8310 Total items that will not be reclassified subsequently to profit or loss Components of other comprehensive income that will be reclassified to profit or loss 8361 Financial statement translation differences of foreign operations 8360 Total Components of other comprehensive income that will be reclassified to profit or loss 8300 Other Comprehensive Incomes (Net) 8500 Total comprehensive income for the year Net Incomes (Losses) Attributable to: 8610 Parent Company 8620 Non-controlling Interests Total Total Comprehensive Incomes (Losses) Attributable to: 8710 Parent Company 8720 Non-controlling Interests Total Earnings per share 9750 Net Income Diluted Earnings per share 9850 Net Income

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

Chairman: Sean Chen

Managerial Officer: Lidon Chen Accounting Officer: Eve Yang

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Taiwan Mask Corporation and Subsidiaries Consolidated Statement of Changes in Equity January 1 to December 31 of 2022 and 2021

Unit: NT$Thousand

2021 Balance as of January 1, 2021 Net Income Other Comprehensive Profit or Loss Total comprehensive income for the year Distribution and appropriation of earnings for 2020 Legal capital reserve Reversal of Special reserve Cash dividends Conversion of convertible bonds Adjustment of capital reserve by dividends paid to subsidiaries Changes in shares of affiliates and joint ventures recognized under the equity method Share-based payment transaction Treasury Stock Buyback Treasury stocks transfer to employees Capital surplus - convertible bond stock options Acceptance of gifts from shareholders Payment of overdue unclaimed dividends to shareholders Cash increase of non-controlling equity in Subsidiaries Balance as of 2021/12/31 2022 Balance January 1, 2022 Net Income Other Comprehensive Profit or Loss Total comprehensive income for the year Distribution and appropriation of earnings for 2021 Legal capital reserve Cash dividends Conversion of convertible bonds Distribution of cash from capital surplus Adjustment of capital reserve by dividends paid to subsidiaries Changes in ownership interests in subsidiaries recognized Changes in shares of affiliates and joint ventures recognized under the equity method Share-based payment transaction Treasury Stock Buyback Treasury stock donation Cash increase of non-controlling equity in Subsidiaries Balance December 31, 2022	Notes							Equityattributableto shareholders	Equityattributableto shareholders	Equityattributableto shareholders	of	the parentcompany	the parentcompany				Non-controlling Interests	Non-controlling Interests		Total Equity
			Capitalstock		Capitalsurplus			Retained earnings				Otherequityinterests		Treasury stock		Total
							Legal reserve	Special reserve		Unappropriated earnings	d	Financial statement translation ifferences of foreign operations	Unrealized gain (loss) on investments on financial assets at fair value through other comprehensive income
	6(21) 6(20) 6(19) 6(19) 6(19) 6(19) 6(21) 6(20) 6(19) 6(19) 6(19) 6(19) 6(19)		$ 2,527,136 - - - - - - 29,599 - - - - - - - - - $ 2,556,735 $ 2,556,735 - - - - - 7,730 - - - - - - - - $ 2,564,465	$ 439,898 - - - - - - 216,415 55,622 27,526 169,174 - - 406,616 586 ( 9 ) - $ 1,315,828 $ 1,315,828 - - - - - 55,472 ( 241,189 ) 73,463 10,169 21,107 16,831 - - - $ 1,251,681			$ 587,990 - - - 68,047 - - - - - - - - - - - - $ 656,037 $ 656,037 - - - 113,915 - - - - - - - - - - $ 769,952	$ 2,666 - - - - ( 2,666 ) - - - - - - - - - - - $ - $ - - - - - - - - - - - - - - - $ -	$ 814,617 1,146,610 1,189 1,147,799 ( 68,047 ) 2,666 ( 379,071 ) - - ( 47,813 ) - - - - - - - $ 1,470,151 $ 1,470,151 703,519 ( 2,656 ) 700,863 ( 113,915 ) ( 241,189 ) - - - ( 86,617 ) - - - - - $ 1,729,293			$ 3,555 - 3,143 3,143 - - - - - - - - - - - - - $ 6,698 $ 6,698 - 6,476 6,476 - - - - - - - - - - - $ 13,174	($ 2,666 ) - - - - - - - - - - - - - - - - ($ 2,666 ) ($ 2,666 ) - - - - - - - - - - - - - - ($ 2,666 )	($ 834,598 ) - - - - - - - - - - ( 828,884 ) 722,059 - - - - ($ 941,423 ) ($ 941,423 ) - - - - - - - - - - - ( 842,536 ) 4,980 - ($ 1,778,979 )	$ 3,538,598 1,146,610 4,332 1,150,942 - - ( 379,071 ) 246,014 55,622 ( 20,287 ) 169,174 ( 828,884 ) 722,059 406,616 586 ( 9 ) - $ 5,061,360 $ 5,061,360 703,519 3,820 707,339 - ( 241,189 ) 63,202 ( 241,189 ) 73,463 ( 76,448 ) 21,107 16,831 ( 842,536 ) 4,980 - $ 4,546,920			($ 90,165 ) ( 299,216 ) - ( 299,216 ) - - - - - 161,737 7,806 - - - - - 32,329 ($ 187,509 ) ($ 187,509 ) ( 257,887 ) - ( 257,887 ) - - - - - - 130,213 2,230 - - 200,240 ($ 112,713 )	$ 3,448,433 847,394 4,332 851,726 - - ( 379,071 ) 246,014 55,622 141,450 176,980 ( 828,884 ) 722,059 406,616 586 ( 9 ) 32,329 $ 4,873,851 $ 4,873,851 445,632 3,820 449,452 - ( 241,189 ) 63,202 ( 241,189 ) 73,463 ( 76,448 ) 151,320 19,061 ( 842,536 ) 4,980 200,240 $ 4,434,207

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

Managerial Officer: Lidon Chen

Chairman: Sean Chen

Accounting Officer: Eve Yang

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Taiwan Mask Corporation and Subsidiaries Consolidated Statement of Cash Flows January 1 to December 31 of 2022 and 2021

Unit: NT$Thousand

Cash Flow from Operating Activities Net Income (Loss) Before Tax Adjustments to Reconcile Net Income to Net Cash Flow from Operating Activities Revenues and Expenses Depreciation Amortization Expected Credit Impairment loss (reversal gain) Interest income Interest Incomes Treasury stock donation expenses Net Profit of Financial Asset at Fair Value Through Loss (Profit) Impairment Loss of Financial Assets Gain (loss) on disposal of investments Dividend income Share-based payment transaction Share of losses of affiliated companies recognized under the equity method Loss (gain) on disposal of property, plant and equipment Property, plant and equipment reclassified as expenses The Changes of Assets/ Liabilities related to Operating Activities The Changes of Assets/ Liabilities related to Operating Activities Mandatory financial assets at fair value through profit or loss Contract Assets Notes Receivables Accounts Receivables Accounts Receivables－Related Parties Other Receivables Other Receivables－Related Parties Inventories Prepayments Other Current Assets Other Non-Current Assets Net Changes of Liabilities related to Operating Activities Contract Liabilities Notes Payable Accounts Payable Accounts payable - Related party Other Payables Provisions Other Current Liabilities Defined Benefit Liabilities Other Current Liabilities Net Cash In-Flow (Out-Flow) from Operating Interest Received Dividends Received Interest Paid Income Tax Paid Cash In-Flow (Out-Flow) from Operating Activities

Notes January 1 to December31,2022 January 1 to December31,2021 $ 673,713 $ 1,138,931 6(27) 568,193 483,274 6(27) 45,391 18,236 12(2) 10,558 ( 1,340 ) 6(23) ( 25,271 ) ( 4,858 ) 6(26) 177,546 100,524 4,980 - 6(25) 801,122 ( 559,714 ) 6(23) - 11,737 6(25) ( 123,552 ) ( 287,760 ) ( 194,598 ) ( 85,104 ) 6(18) 19,061 176,980 6(6) 61,296 80,385 6(24) ( 5,024 ) 1,927 1,186 - ( 115,356 ) ( 2,071,523 ) 15,532 ( 61,954 ) ( 1,298 ) 1,018 ( 247,822 ) ( 345,858 ) 14,466 ( 10,213 ) 55,246 ( 14,606 ) - 3,068 21,187 ( 182,382 ) ( 158,379 ) ( 33,317 ) ( 14,837 ) 40,111 671 104,166 53,463 78,360 15 ( 4,263 ) ( 60,057 ) 64,213 284 - 144,840 211,059 ( 10,964 ) - ( 167 ) 10,526 4,169 ( 2,026 ) ( 98,218) 51,396 1,617,376 ( 1,089,007 ) 25,271 4,825 194,598 85,104 ( 177,546 ) ( 101,583 ) ( 246,930) ( 165,546) 1,412,769( 1,266,207)

(Continued)

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Taiwan Mask Corporation and Subsidiaries Consolidated Statement of Cash Flows January 1 to December 31 of 2022 and 2021

Cash Flow from Investment Activities Acquisition of Amortized Cost Financial Assets Disposal of Amortized Cost Financial Assets Acquisition of investment property by the Equity Method Cash inflows from changes in consolidated entities Acquisition of Property, Plants and Equipment Disposal of Property, Plants and Equipment Acquisition of Intangible Assets Decrease (Increase) of Refundable Deposits Net Cash Outflow from Investing Activities Cash Flows from Financing Activities Increase of Short Term Loan Redemption of Short Term Loan Increase of Long Term Loan Redemption of Long Term Loan Issuance of ordinary/convertible corporate bonds Distribution of cash dividends (including capital surplus distribution cash) Treasury stocks transfer to employees Treasury stock buyback cost Redemption of Lease Principal Increase in Guarantee Deposits Received Cash increase of non-controlling equity in Subsidiaries Payment of overdue unclaimed dividends Net Cash In-Flow (Out-Flow) from Funding Activities Adjustments of Exchange Rate Net increase (decrease) in cash and cash equivalents Beginning Balance of Cash and Cash Equivalents Ending Balance of Cash and Cash Equivalents

Unit: NT$Thousand Notes January 1 to December31,2022 January 1 to December31,2021 ( $ 610,686 ) ( $ 8,397 ) 20,882 24,868 - ( 188,072 ) 6(31) - 46,854 6 (32) ( 2,911,204 ) ( 1,883,332 ) 6,020 79,905 ( 45,767 ) ( 13,089 ) ( 36,932 ) 2,680 ( 3,577,687 ) ( 1,938,583 ) 6 (33) 16,200,182 8,552,978 6 (33) ( 15,952,423 ) ( 6,515,430 ) 6 (33) 4,569,424 1,936,952 6 (33) ( 3,512,177 ) ( 954,679 ) 6(31) 997,095 2,297,099 ( 408,915 ) ( 323,449 ) - 722,059 ( 842,536 ) ( 828,884 ) 6 (33) ( 55,556 ) ( 63,982 ) 6 (33) 27,846 1,779 200,240 32,329 - ( 9 ) 1,223,180 4,856,763 9,876 ( 6,812 ) ( 931,862 ) 1,645,161 6(1) 2,681,819 1,036,658 6(1) $ 1,749,957 $ 2,681,819

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

Chairman: Sean Chen

Managerial Officer: Lidon Chen Accounting Officer: Eve Yang

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Taiwan Mask Corporation and Subsidiaries Notes to the Consolidated Financial Statements

2022 and 2021

Unit: NT$Thousand

(Unless otherwise specified)

I. Company history

Taiwan Mask Corporation (hereinafter referred to as the “Company”) was established on October 21, 1988, and started its operations in March 1989. The Company was approved by the shareholders meeting on June 12, 2000 to acquire Shin-Tai Technology Co., Ltd., on the merger record date of December 1, 2000, with the Company being the surviving entity. The Company and its subsidiary (collectively referred to as the “Group”) mainly engage in the research, development, manufacturing and sales of photomask and integrated circuits, providing technical assistance, consultation, inspection and repair of the abovementioned products, and manufacturing and buying and selling of medical equipment.

II. Date and procedures for passing the financial statement

The accompanying consolidated financial statements were approved and authorized for issuance by the Board of Directors on March 3, 2023.

III. Application of New and Revised International Financial Reporting Standards

(I) The impact from adopting the newly released and revised International Financial Reporting Standards recognized and issued into effect by the Financial Supervisory Commission (FSC).

The following table summarizes the applicable newly released, corrected and amended standards and interpretations of the International Financial Reporting Standards recognized and issued into effect by the Financial Supervisory Commission in 2022:

issued into effect by the Financial Supervisory Commission in 2022:
Newlyreleased/corrected/amended standards and interpretations Amendments to IFRS3- “Reference to Conceptual Framework” Amendment to IAS16- “Property, Plant and Equipment: Proceeds before Intended Use”. Amendment to IAS37“Onerous Contracts - Cost of Fulfilling a Contract” Annual improvements to2018 - 2020 cycle	Effective Date Issued by IASB
	January 1, 2022 January 1, 2022 January 1, 2022 January 1, 2022

The Group believes that the adoption of aforementioned IFRSs will not have a significant effect on the financial position and performance.

(II) Impact of the newly released and amended IFRS recognized by the FSC not yet adopted by the Company.

The following table summarizes the applicable newly released, corrected and amended standards and interpretations of the International Financial Reporting Standards recognized by the Financial Supervisory Commission in 2023:

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Newlyreleased/corrected/amended standards and interpretations Amendment to IAS1- “Disclosure of Accounting Policies” Amendment to IAS8- “Definition of Accounting Estimates” Amendments to IAS12, “Deferred Income Taxes Related to Assets and Liabilities Arising from a Single Transaction”	Effective Date Issued by IASB January 1, 2023 January 1, 2023 January 1, 2023

The Group believes that the adoption of aforementioned IFRSs will not have a significant effect on the financial position and performance.

(III) IFRSs issued by the IASB but not yet recognized by the FSC.

The following table summarizes the applicable newly released, corrected and amended standards and interpretations of the International Financial Reporting Standards issued by the IASB but not yet recognized by the FSC:

IASB but not yet recognized by the FSC:
Newlyreleased/corrected/amended standards and interpretations Amendments to IFRS10and IAS28- “Sale or contribution of assets between an investor and its associate or joint venture” Amendments to IFRS16- “Liabilities of Lease from the Leaseback” IFRS17- “Insurance contracts” Amendment to IFRS17 -“Insurance contracts” Amendments to IFRS17 -“First-time Adoption of IFRS17and IFRS9 - Comparative Information” Amendment to IAS1- “Classification of Liabilities as Current or Non- Current” Amendment to IAS1- “Non-Current Liabilities With Covenants”	Effective Date Issued by IASB
	To be determined by the IASB January 1, 2024 January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2024 January 1, 2024

The Group believes that the adoption of aforementioned IFRSs will not have a significant effect on the financial position and performance.

IV. Summary of significant accounting policies

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

(I) Compliance statement

These consolidated financial statements of the Group have been prepared in accordance with the “Rules Governing the Preparation of Financial Statements by Securities Issuers”, International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed and issued into effect by the FSC (collectively referred herein as the “IFRSs”).

(II) Basis of Preparation

1. Except for the following items, these consolidated financial statements have been prepared under the historical cost convention.

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• (1) Financial assets and financial liabilities at fair value through profit or loss (including derivatives).

• (2) Financial assets at fair value through other comprehensive income

• (3) Defined benefit liabilities recognized based on the net amount of pension fund assets less present value of defined benefit obligation.

• The preparation of financial statements in conformity with IFRSs requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Group's accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note V.

(III) Basis of consolidation

1. The basis for preparation of consolidated financial statements

2. (1) All subsidiaries are included in the Corporate Group’s consolidated financial statements. Subsidiaries are all entities controlled by the Corporate Group. The Corporate Group controls an entity when the Group is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Consolidation of subsidiaries begins from the date the Group obtains control of the subsidiaries and ceases when the Group loses control of the subsidiaries.

3. (2) Inter-company transactions, balances and unrealized gains or losses on transactions between companies within the Corporate Group are eliminated. Accounting policies of subsidiaries have been adjusted where necessary to ensure consistency with the policies adopted by the Corporate Group.

4. (3) The profit and loss and the components of other comprehensive income attribute to the owners of the parent company and non-controlling interest. The total comprehensive income also attributes to the owners of the parent company and non-controlling interest, even if this results in the non-controlling interests having a deficit balance.

5. (4) Changes in a parent's ownership interest in a subsidiary that do not result in the parent losing control of the subsidiary (transactions with non-controlling interests) are equity transactions, and they are considered as transactions with owners in their capacity as owners. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is directly recognized in equity.

6. (5) When the Group loses control of a subsidiary, the Group remeasures any investment retained in the former subsidiary at its fair value. That fair value is regarded as the fair value on initial recognition of a financial asset or the cost on initial recognition of the associate or joint venture. Any difference between fair value and carrying amount is recognized in profit or loss. All amounts previously recognized in other comprehensive income in relation to the subsidiary are reclassified to profit or loss on the same basis as would be required if the related assets or liabilities were disposed of. That is, when the Group loses control of a subsidiary, all gains or losses previously recognized in other comprehensive income in relation to the subsidiary should be reclassified from equity to profit or loss, if such gains or losses would be reclassified to profit or loss when the related assets or liabilities are disposed of.

7. Subsidiaries included in the consolidated financial statements:

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Name of Investor Taiwan Mask Corporation Taiwan Mask Corporation Taiwan Mask Corporation Taiwan Mask Corporation Youe Chung Capital Corporation Youe Chung Capital Corporation Youe Chung Capital Corporation Youe Chung Capital Corporation Youe Chung Capital Corporation Aptos Technology INC. Aptos Technology INC. ADL Energy Corp Miracle Technology Co., LTD.	Name of Subsidiary	Main Business Activity Name of Investor Name of Investor Electronics components manufacturing, electronics materials and precision equipment distribution and power component design Manufacturing, retail, wholesale and international trade of medical equipment Manufacturing, retail, wholesale and international trade of medical equipment Design, packaging and testing of NANDflash memory, solid state drives and the related products Precious metal coating Precious metal coating 3DPrinting and Plastic Mold Design Electronic parts and components and energy technical services Name of Investor Name of Investor Name of Investor	Ownership (%) December 31, 2022 December 31, 2021 100 100 100 100 100 100 91.53 91.53 0.23 0.23 47.19 38.16 100 41.43 53.00 - 57.39 57.39 100 100 100 100 100 100 100 100	Explana tion
			December 31, 2022 100 100 100 91.53 0.23 47.19 100 53.00 57.39 100 100 100 100
	SunnyLake Park International Holding, Inc. Youe Chung Capital Corporation Miracle Technology Co., LTD. Innova Vision INC. Innova Vision INC. Aptos Technology INC. Xsense Technology Corporation Xsense Technology Corporation (B.V.I.) Taiwan Branch Digital-Can Tech. Co., Ltd. ADL Energy Corp New Sunrise Limited Aptos Global Holding Corp. Jing Hao Investment Co., Ltd.			Note3 Note4, Note5 Note5 Note1 Note2

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Name of Investor Miracle Technology Co., LTD. Jing Hao Investment Co., Ltd. Jing Hao Investment Co., Ltd. Miko-China Enterprise (Shanghai) Co., Ltd. Miracle International Enterprise (Shanghai) Co., Ltd. Innova Vision Inc. Innova Vision Inc. Innova Vision Inc. Innova Vision (B.V.I.) Inc.	Name of Subsidiary	Main Business Activity Electronics components manufacturing, electronics materials and precision equipment distribution and power component design Electronics components manufacturing, electronics materials and precision equipment distribution and power component design Electronics components manufacturing, electronics materials and precision equipment distribution and power component design ICproduct design, production andsales ICproduct design, production and sales Medical equipment retail and wholesale Name of Investor Medical equipment retail and wholesale Medical equipment retail and wholesale	Ownership (%) December 31, 2022 December 31, 2021 100 100 100 100 100 100 79.17 79.17 20.83 20.83 100 100 100 100 52.03 52.03 47.97 47.97	Explana tion
			December 31, 2022 100 100 100 79.17 20.83 100 100 52.03 47.97
	Miracle International Enterprise (Shanghai) Co., Ltd. Miko-China Enterprise (Shanghai) Co., Ltd. MIKO Technology Co., Ltd. Sichuan Miracle Power Technology Co., Ltd. Sichuan Miracle Power Technology Co., Ltd. Innova Technology Innova Vision (B.V.I.) Inc. Innova Vision Kabushiki Kaisha Innova Vision Kabushiki Kaisha

Note 1: In August 2021, the Company's subsidiary, Youe Chung Capital Corporation, increased its investment in Digital-Can Tech. Co., Ltd. to 57.39%. Note 2: Adl Technology was renamed ADL Energy Corp on January 5, 2022.

Note 3: The Group accounts for more than half of the company's board seats and has substantial control, so it is included as a consolidated entity in the consolidated financial statements.

Note 4: In April 2021, the Group participated in the management decisions and operating

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policies of Xsense Technology Corporation and therefore included the firm in the consolidated financial statements as a consolidated entity from that date.

• Note 5: Xsense Technology Corporation underwent a physical capital reduction in November 2022, leaving only 1 share held by Youe Chung Capital Corporation; at the same time, Xsense Technology Corporation applied to have the shares of Xsense Technology Corporation (B.V.I.) Taiwan Branch it held transferred to the original shareholders of Xsense Technology Corporation according to the original shareholding percentage; as of December 31, 2022, Youe Chung Capital Corporation held 100% equity of Xsense Technology Corporation and 53.00% of Xsense Technology Corporation (B.V.I.) Taiwan Branch.

• Subsidiaries not included in the consolidated financial statement: None.

• Adjustments for subsidiaries with different balance sheet dates: None.

• Significant restrictions: None.

• Subsidiaries that have non-controlling interests that are material to the Corporate Group:

The total non-controlling interests of the Group as of December 31, 2022 and 2021 were ($112,713) and ($187,509). The following information shows subsidiaries that have noncontrolling interests that are material to the Corporate Group:

Name of Subsidiary	Main location of business	Non-controllingInterests December 31, 2022 December 31, 2021 Amount Ownership in % Amount Ownership in % ($ 100,582) 52.81% ($ 245,715) 61.84%	Non-controllingInterests December 31, 2022 December 31, 2021 Amount Ownership in % Amount Ownership in % ($ 100,582) 52.81% ($ 245,715) 61.84%	Explana tion
		December 31, 2022 Amount Ownership in % ($ 100,582) 52.81%
		Amount ($ 100,582)
Aptos Technology and its subsidiaries	Taiwan		52.81%

Aggregate financial information of subsidiaries:

Balance Sheet

Current assets Non-Current Assets Current liabilities Non-current liabilities Total net assets	Aptos Technologyand its subsidiaries	Aptos Technologyand its subsidiaries
	December 31,2022 $ 339,417 579,075 ( 679,551) ( 429,397) ($ 190,456)	December31,2021
		$ 391,993 560,687 ( 1,159,778) ( 190,261)
		($ 397,359)

Statement of Comprehensive Income

Aptos Technologyand its subsidiaries
2022 2021

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Revenue $ 708,792 Net loss before taxes ( 295,477) Income Tax Expense - Net loss of current period from continuing operations ( 295,477) Net loss ( 295,477) Other comprehensive income (net after tax) - Total comprehensive income for the year ($ 295,477) Total comprehensive income attributable to non- controlling interests $ -	$ 609,209
	( 245,370) -
	( 245,370)
	( 245,370) -
	($ 245,370)
	($ 1,603)

Statements of Cash Flows

Statements of Cash Flows
Net cash outflow from operating activities Net Cash Outflow from Investing Activities Net Cash In-Flow (Out-Flow) from Funding Activities Increase (Decrease) in Cash and Cash Equivalents Beginning Balance of Cash and Cash Equivalents Ending Balance of Cash and Cash Equivalents	Aptos Technology 2022 ($ 236,453) ( 106,726) 327,492 ( 15,687) 34,148 $ 18,461	and its subsidiaries
		2021
		($ 142,203) ( 98,611) 235,769
		( 5,045) 39,193
		$ 34,148

(IV) Foreign currency translation

Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The consolidated financial statements are presented in New Taiwan dollars, which is the Company's functional currency.

1. Foreign currency transactions and balances

2. (1) Foreign currency transactions are translated into the functional currency using spot exchange rate 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.

3. (2) Monetary assets and liabilities denominated in foreign currencies at the period end are re-translated using spot exchange rate at the balance sheet date. Exchange differences arising from re-translation at the balance sheet date are recognized in profit or loss.

4. (3) Non-monetary assets and liabilities denominated in foreign currencies held at fair value through profit or loss are re-translated using spot exchange rate 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 re-translated using spot exchange at the balance sheet date. Their translation differences are recognized in other comprehensive income. For those which are not measured at fair value, they measured by the historical exchange rate of

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the initial transaction date.

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

• Translation of foreign operations

• (1) The operating results and financial position of all corporate group entities and affiliates that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

  • A. Assets and liabilities for each balance sheet presented are translated at the closing exchange rate at the date of that balance sheet.

  • B. Income and expenses for each statement of comprehensive income are translated at average exchange rates of that period.

  • C. All resulting exchange differences are recognized in other comprehensive income.

• (2) When the foreign operation that is partially disposed of or sold is a subsidiary, the accumulated conversion difference recognized as other comprehensive income is reattributed to the foreign operation's non-controlling interests on a pro rata basis. However, even if the Group retains part of its equity in the former subsidiary, but has lost control of the subsidiary of the foreign operation, it will be treated with as a disposal of the entire equity of the foreign operation

• (3) Goodwill and fair value adjustments arising on acquisition of a foreign entity are regarded as assets and liabilities of the foreign entity, and are translated at the closing rate.

(V) Classification of current and non-current items

1. Assets that meet one of the following criteria are classified as current assets:

2. (1) Assets arising from operating activities that are expected to be realized, or are intended to be sold or consumed within the normal operating cycle.

3. (2) Assets held mainly for trading purposes.

4. (3) Assets that are expected to be realized within twelve months from the balance sheet date.

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

Those that do not meet the above criteria are considered non-current.

1. Liabilities that meet one of the following criteria are classified as current liabilities:

2. (1) Liabilities that are expected to be paid off within the normal operating cycle.

3. (2) Assets held mainly for trading purposes.

4. (3) Liabilities that are to be paid off within twelve months from the balance sheet date.

5. (4) 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.

Those that do not meet the above criteria are considered non-current.

(VI) 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

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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.

(VII) Financial assets at fair value through profit and loss

1. Refer to the financial assets that are not measured at amortized cost, or are measured at fair value through other comprehensive gain or loss.

2. On a regular way purchase or sale basis, financial assets at fair value through profit or loss are recognized and derecognized using trade date accounting.

3. The Group measures financial assets at fair value in initial recognition. The related transaction costs are recognized in profit and loss. These financial assets are subsequently re-measured and stated at fair value, and any changes in the fair value of these financial assets are recognized in profit or loss.

4. When the right to receive dividends is established, the economic benefits associated with the dividends are likely to flow in, and the amount of dividends can be reliably measured, the Group recognizes dividend income in profit or loss.

(VIII) Financial assets at fair value through other comprehensive profit and loss

1. Refers to an irrevocable election at the time of initial recognition to report the fair value changes of equity investments that are not held for trading in other comprehensive income.

2. On a regular way purchase or sale basis, financial assets at fair value through other comprehensive income are recognized and derecognized using trade date accounting.

3. The Corporate Group measures financial assets at fair value plus transaction costs at the initial recognition. The financial assets are subsequently measured at fair value. The fair value changes of equity investments are recognized in other comprehensive income. At the time derecognition, the accumulated gains or losses previously recognized in other comprehensive income shall not subsequently reclassified to profit or loss, and shall be transferred to retained earnings. When the right to receive dividends is established, the economic benefits associated with the dividends are likely to flow in, and the amount of dividends can be reliably measured, the Group recognizes dividend income in profit or loss.

(IX) Financial assets measured at amortized cost

1. Refer to those that meet the following criteria at the same time:

2. (1) The objective of the business model is achieved by collecting contractual cash flows.

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

4. The Corporate Group holds time deposits that are not considered cash equivalents. Due to the short holding period, the impact of discounting is insignificant and is measured by the amount of investment.

(X) Accounts and notes receivable

1. Refers to accounts and notes that have been unconditionally charged for the right to exchange the value of the consideration due to the transfer of goods or services.

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

(XI) Impairment Loss of Financial Assets

Regarding debt instruments measured at FVTOCI, financial assets measured at amortized

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cost, accounts receivable or contract assets and lease receivables that contain significant financing components, the Group, on each balance sheet date, considers all reasonable and supportable information (including forward-looking ones) and measure the loss allowance based on the 12-month expected credit losses for those that do not have their credit risk increased significantly since initial recognition. For those that have increased significantly since initial recognition, the loss allowance is measured based on the full lifetime expected credit losses. A loss allowance for full lifetime expected credit losses is also required for contract assets or trade receivables that do not constitute a financing transaction.

(XII) De-recognition of financial assets

A financial asset is derecognized when the Group's rights to receive cash flows from the financial assets have expired.

• (XIII) Lessor's lease transaction - Operating lease

Lease income from operating leases, less any incentives given to the lessee, is amortized in current profit or loss on a straight-line basis over the lease term.

• (XIV) Inventories

• Inventories are measured at the lower of cost or net realizable value, and the cost is determined by weighted-average method. The cost of finished goods and work-in-progress comprises raw materials, direct labor, other direct costs and related production overheads (amortized according to normal production capacity), but excludes borrowing costs. At the end of year, inventories are evaluated at the lower of cost or net realizable value. 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 applicable variable costs of completion and selling expenses.

(XV) Investments accounted for using equity method - Associates

1. Associates refer to entities over which the Corporate Group has significant influence but is not in control. In general, the associates may have more than 20% of their voting shares directly or indirectly owned by the Group. The Corporate Group accounts for its investment in associates using the equity method, and the investment is initially recognized at cost.

2. The Corporate Group recognizes the profit and loss upon the acquisition of associates as the current profit and loss. Other comprehensive profit and loss after the acquisition are recognized as the other comprehensive profit and loss. When the Corporate Group’s share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured receivables, the Group will not recognize further losses, unless it has incurred legal or constructive obligations or make payments on behalf of the associate.

3. If an associate has changes in equity not from profit or loss or other comprehensive income, and such changes do not affect the Corporate Group's shareholding in the associate, the Group will recognize all changes in equity attributable to the Group's share of the associate as “capital surplus” according to the shareholding percentage.

4. Unrealized gains on transactions between the Corporate Group and associates are eliminated to the extent of the Group'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 Corporate Group.

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1. In the event that an associate issues new shares and the Corporate Group does not subscribe to or acquire the new shares in proportion, which results in a change to the Group's shareholding percentage but the Group maintains a significant influence on the associate, the increase or decrease of the Group's share of equity interest is the adjustment of “capital surplus” and “investments accounted for under the equity method”. If the investment percentage is reduced, in addition to the above adjustments, the amounts previously recognized in other comprehensive income in relation to the associate are reclassified to profit or loss proportionally on the same basis as would be required if the relevant assets or liabilities were disposed of.

(XVI) Property, plant and equipment

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

2. 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 Corporate Group 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.

3. 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.

4. The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each balance sheet date. 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:

Buildings and structures	5 years to 56 years
Machinery and equipment	2 years to 14 years
Office equipment	3 years to 6 years
Transportation equipment	3 years to 6 years
Leasehold improvements	2 years to 10 years
Mold equipment	2 years
Other equipment	3 years to 5 years

(XVII) Leasing agreements (lessee) - Right-of-use assets/lease liabilities

1. Leases are recognized as right-of-use assets and lease liabilities at the date at which the leased assets are available for use by the Group. For short-term leases or leases of lowvalue assets, lease payments are recognized as expenses on a straight-line basis over the lease term.

2. 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 include fixed payments, less any lease incentives receivables.

The Company subsequently measures the lease liability at amortized cost using the

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interest method and recognizes interest expense over the lease term. The lease liability is remeasured and the amount of re-measurement is recognized as an adjustment to the rightof-use asset when there are changes in the lease term or lease payments and such changes do not arise from contract modifications.

1. At the commencement date, the right-of-use asset is recognized at cost which includes:

2. (1) The amount of initial measurement of lease liability.

3. (2) Any lease payments made at or before the commencement date.

4. (3) Any original direct costs incurred.

5. (4) The estimated cost of dismantling, removing the underlying asset and restoring its location, or restoring the underlying asset to the condition required in the lease terms and conditions.

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 service life or the end of lease term. When the lease liability is remeasured, the amount of re-measurement is recognized as an adjustment to the right-of-use asset.

(XVIII) Real estate investment

Investment properties are initially measured at cost, and may be subsequently measured using a cost model. Except for land, the service life is recognized on a straight-line basis of depreciation and is about 45 years.

(XIX) Intangible assets

1. Trademark and concession

Trademarks and concession obtained separately are recognized at the cost of acquisition, and trademarks and concessions obtained as a result of a business combination are recognized at fair value on the acquisition date. Trademarks and concessions are assets with a limited useful life and are amortized based on the estimated useful life of 10 to 15 years based on the straight-line method.

1. Computer software

Computer software is recognized at the cost of acquisition, and amortized based on the estimated useful life of 3 years based on the straight-line method.

1. Goodwill

Goodwill is measured in a business combination using the acquisition method.

(XX) Impairment of non-financial assets

1. The Corporate Group 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 disposal cost 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.

2. Goodwill, intangible assets with indefinite useful life and intangible assets not yet available for use are regularly estimated for their recoverable amounts. An impairment loss is recognized for the amount by which the asset's carrying amount exceeds its

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recoverable amount. The goodwill impairment loss will not be reversed in subsequent years.

1. Goodwill is allocated to cash-generating units for the purpose of conducting the impairment testing. The allocation identified based on the operating segment, and the goodwill is allocated to cash-generation units or groups of cash-generation units expected to benefit from the business combination that generates goodwill.

(XXI) Borrowings

Refers to long- and short-term funds borrowed from banks. 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 borrowings using the effective interest method.

(XXII) Accounts and notes receivable

1. Refers to debts incurred as a result of the purchase of raw materials, goods or services and the notes payable due to business and non-business purposes.

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

(XXIII) Convertible bonds payable

The convertible bonds payable issued by the Group are embedded with conversion options (i.e., the holder's right to choose to convert to the Group's common stock for a fixed amount of shares), put options and call options. The issuance price is classified as financial assets, financial liabilities or equity at the time of initial issuance according to the terms of issuance, which is treated as follows:

1. Embedded put options and call options: “Financial assets or liabilities at fair value through profit or loss” are recorded at their net fair value on initial recognition; subsequently, “Gain or loss on financial assets (liabilities) at fair value through profit or loss” is recognized on the balance sheet date, with the difference valued at current fair value.

2. Master contract of corporate bonds: The difference between the fair value of the corporate bonds and the redemption value is recognized as a premium or discount on the corporate bonds payable at the time of original recognition; subsequently, it is recognized in profit or loss as an adjustment to “finance costs” using the effective interest method under the amortization procedure over the circulation period.

3. Embedded conversion options (which meet the definition of equity): On initial recognition, the remaining value of the issue amount, net of the above “financial assets or liabilities at fair value through profit or loss” and “corporate bonds payable”, is recorded as “capital surplus - stock options” and is not subsequently remeasured.

4. Any directly attributable transaction costs of the issuance are allocated to each component of liabilities and equity in proportion to the original carrying amount of each component mentioned above.

5. Upon conversion, the components of liabilities (including “corporate bonds payable” and “financial assets or liabilities at fair value through profit or loss”) are subsequently measured according to their respective classifications, and the carrying amount of the aforementioned components of liabilities is added to the carrying amount of “capital

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surplus - stock options” as the issuance cost of common stock exchanged.

(XXIV) Employee benefits

1. 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 expenses in that period when the employees render service.

1. Pension

2. (1) Defined contribution plans

For defined contribution plans, the contributions are recognized as pension expenses 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.

• (2) Defined benefit plans

• A. 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 Group 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 the current interest rates of government bonds (at the balance sheet date) consistent with the currency and period of the defined-benefit plan instead.

• B. Re-measurements arising on defined-benefit plans are recognized in other comprehensive income in the period in which they arise and are recorded as retained earnings.

• C. The related expenses of the past service cost are immediately recognized as profit and loss.

3. Termination benefits

Refer to when companies decide to terminate the employees before the normal retirement date, or when employees decide to accept the benefits in exchange for the termination. The Group recognizes expenses when it is no longer able to withdraw the offer of termination benefits or when the relevant restructuring costs are recognized, whichever is earlier. Liabilities that are not expected to be paid off within twelve months from the balance sheet date should be discounted.

1. Remuneration for employees and directors and supervisors

Employees' bonuses and directors' and supervisors' 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.

(XXV) Share-based payment to employees

The share-based payment agreement for delivery of equity is a transaction in which employees' labor service received as consideration for the Company's equity instrument

~31~

at fair value, and it is recognized as compensation costs during the vesting period, and the equity is adjusted accordingly. The fair value of equity instrument shall reflect the effects of vesting and non-vesting conditions of market value. The recognized remuneration costs are adjusted in accordance with the expected service conditions to be met and the nonvesting market value conditions, until the final recognized amount is recognized with the vesting amount on the vesting date.

(XXVI) Income tax

1. 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.

2. 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 Company and its subsidiaries operate and generate 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.

3. Deferred income 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 consolidated balance sheet. However, the deferred income tax is not accounted for if it arises from initial recognition of goodwill or 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. Deferred income 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 Group and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred income 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 income tax asset is realized or the deferred income tax liability is settled.

4. Deferred income 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 income tax assets are reassessed.

5. 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 income 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. 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.

(XXVII) Capital

1. 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,

~32~

from the proceeds.

1. When the Company buys back the issued shares, the consideration paid, including any directly attributable incremental costs, is recognized as a deduction of shareholders’ equity with the net amount after tax. When the purchased shares are subsequently reissued, the difference between the consideration received and the book value after deducting any directly attributable incremental costs and the impact of income tax is recognized as an adjustment to shareholders’ equity.

(XXVIII) Dividend distribution

Dividends are recorded in the Company's financial statements in the period in which they are resolved by the Company's shareholders. Cash dividends are recorded as liabilities. Stock dividends are recorded as dividends to be distributed and transferred to be common stocks and share premium on the record date of issuance of new shares.

(XXIX) Recognized revenue

1. Product sales

• (1) The Group manufactures and sells photomasks and integrated circuit products, medical equipment products, etc. The sales revenue is recognized when the control of the product is transferred to the customer. That is, once products are delivered to customers, the customers have discretion on the channel and price of product sales, and the Corporate Group has no outstanding performance obligations that may affect customers' acceptance of the products. The delivery of products occurs when products are shipped to a designated location and the risk of obsolescence and loss has been transferred to customers, and the customers accept the products in accordance with the sales contract or have objective evidence that all criteria have been met.

• (2) The time interval between the transfer products or services promised to customers and the customers' payment has not exceeded one year, so the Corporate Group has not adjusted the transaction price to reflect the time value of money.

• (3) Accounts receivable are recognized when goods are delivered to customers. The Corporate Group has unconditional rights to the contract price, and will be able to collect the amount from the customers after the time has passed.

• Sales of services

The Group mainly provides integrated circuit packaging services. The actual services provided and fees will vary according to different customers. Prices are negotiated separately before providing services, and are based on the prevailing market price. The performance obligations identified based on customer contracts are mainly for packaging services, and revenue is recognized by measuring the degree of completion of performance obligations during the period of service provision.

With the packaging service provided, the customer simultaneously receives and consumes the performance benefits, and the customer has control over the asset when the asset is created or enhanced. The related revenue is recognized by measuring the degree of completion of the performance obligation during the service period. The packaging service is based on the input of the technical staff on the basis of the service, and the progress of completion is measured based on the percentage of the incurred cost to the estimated total cost. After the agreed service or shipment is fulfilled for the contract agreement, a bill is issued, so the contract assets are recognized when the

~33~

service provided, and transferred to account receivables when the customer agrees to the Group to issue the bill.

(XXX) Government subsidies

• Government subsidies are recognized at fair value once it is reasonably convinced that the Company complies with the conditions for subsidies and will be receiving the subsidies. If the nature of the government subsidies is to compensate the expenses incurred by the Group, the government subsidies are recognized as current gains and losses on a systematic basis during the period in which the related expenses are incurred.

(XXXI) Business combination

1. The Corporate Group adopts the acquisition method for business combination. The combination consideration is calculated based on the fair value of transferred assets, liabilities incurred or assumed, and equity instruments issued. The transferred consideration includes the fair value of any assets and liabilities arising from contingent consideration agreed. The acquisition-related costs are recognized as expenses when incurred. The identifiable assets acquired and the liabilities assumed in a business combination are measured at the fair value on the acquisition date. The Group uses individual acquisition transactions as the basis. If the non-controlling interest is part of the current ownership interest and the holder has the right to a proportional share of the company's net assets at the time of liquidation, it is measured at a fair value on the acquisition date or based on the proportion of identifiable assets of acquiree. Other components of non-controlling interests are measured at fair value of the acquisition date.

2. If the total fair value of transfer of consideration, non-controlling interests of acquiree and the interest of acquiree that has been held previously exceeds the fair value of identifiable assets and the assumed liabilities, it is recognized as goodwill on the acquisition date. If the identifiable assets acquired and the assumed liabilities exceed the transfer of consideration, the difference between the non-controlling interests of acquiree and the total fair value of acquiree's interests previously held is recognized as the current profit or loss.

(XXXII) Operating segments

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the president that makes strategic decisions.

V. Critical Accounting Judgments and Key Sources of Estimation and Uncertainty

The preparation of these consolidated financial statements requires the management to make critical judgments in applying the Group’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. Please see the following explanation of critical accounting judgments and key sources of estimation and uncertainty:

(I) Important judgments adopted by the accounting policies

None.

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• (II) Critical accounting estimates and assumptions

Evaluation of Inventories

The Group is primarily engaged in mask and integrated circuit services in the semiconductor industry. Due to rapid technological innovations, short life-cycle and competition within the mask industry, the risk of price fluctuations, Loss on decline in value of inventories and obsolescence is higher than that of other industries. The Group measures inventory based on the lower of cost and net realizable value. For inventories that are older than a certain period of age or are outdated and obsolete, the Group must use judgment and estimation to determine the net realizable value of the inventory on the balance sheet date. The valuation of inventory may undergo major changes.

As of December 31, 2022, the book value of the Corporate Group's inventory was NT$382,530.

VI. Summary of Significant Accounting Items

(I) Cash and Cash Equivalents

ary of Significant Accounting Items Cash and Cash Equivalents
Cash on hand Checking accounts and demand deposits Time deposits Total	December 31,2022 $ 612 1,012,305 737,040 $ 1,749,957	December31,2021
		$ 295 1,637,066 1,044,458
		$ 2,681,819

1. The Group associates 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.

2. The Group has no cash and cash and cash equivalents pledged to others.

(II) Financial assets and liabilities at fair value through profit or loss

Items Current items: Financial assets mandatorily measured at fair value through profit or loss Shares of listed and OTC company Convertible bond call/put options Beneficiary certificates Valuation adjustment Financial liabilities mandatorily measured at fair value through profit or loss Convertible bond call/put options	December31,2022 $ 1,254,041 - 500 1,254,541 330,057 $ 1,584,598 $ 5,697	December31,2021
		$ 2,464,617 5,000 500
		2,470,117 1,133,803
		$ 3,603,920
		$ -

Non-current items:

Financial assets mandatorily measured at fair value through profit or loss

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Shares of listed and OTC company Not listed, OTC or emerging stock board stocks Private equity Valuation adjustment	$ 2,596,725 115,338 20,000 2,732,063 164,494 $ 2,896,557	$ 1,155,128 124,287 10,000
		1,289,415 144,337
		$ 1,433,752

1. Details of financial assets/liabilities at fair value through profit or loss recognized in profit or loss are as follows:

loss are as follows:
Financial assets mandatorily measured at fair value through profit or loss Shares of listed and OTC company Not listed, OTC or emerging stock board stocks	2022 ($ 669,499) ( 8,072) ($ 677,571)	2021
		$ 839,470 ( 4,147
		$ 835,323

1. Please see Note 8 on how the Group provides financial assets at fair value through profit or loss as a pledged collateral.

2. Please see Note 12 (2) and (3) for the price risk and fair value information related to financial assets at fair value through profit or loss.

(III) Financial assets measured at amortized cost

assets at fair value through profit or loss. Financial assets measured at amortized cost
Items Current items: Demand Deposit Time deposits Non-current items: Demand Deposit Time deposits Total	December 31,2022 $ 102,500 57,965 $ 160,465 $ 22,383 485,219 $ 507,602	December31,2021
		$ 15,338 23,000
		$ 38,338
		$ - 39,925
		$ 39,925

1. Financial assets at amortized cost is recognized in the profit or loss shown as follows:

Interest income	2022 $ 9,052	2021
		$ 147

1. While not considering the collaterals or other credit enhancements, the financial assets at amortized cost held by the Group had the maximum exposure of credit risk at $668,067 and

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  - $78,263 as of December 31, 2022 and 2021, respectively.

1. Please see Note 8 on how the Group provides financial assets at amortized cost as a pledged collateral.

2. (IV) Notes and accounts receivable

collateral. Notes and accounts receivable
Notes Receivables Accounts Receivables Accounts Receivables－Related Parties Less: Loss allowance	December31,2022 $ 1,361 $ 1,521,609 2,346 1,523,955 ( 20,597) $ 1,503,358	December31,2021
		$ 63
		$ 1,273,787 16,812
		1,290,599 ( 10,039)
		$ 1,280,560

1. Aging of accounts receivable notes receivable is as follows:

Not past due Up to 30days 31-90days 91-180days More than 181 days past due	December	31,2022 Notes Receivables $ 1,361 - - - - $ 1,361	December	31,2021
	Accounts Receivables $ 1,188,466 224,106 85,210 14,582 11,591 $ 1,523,955		Accounts Receivables $ 1,060,909 188,933 29,361 1,891 9,505 $ 1,290,599	Notes Receivables
				$ 63 - - - -
				$ 63

The above is an aging report based on the number of days past due.

1. As of December 31, 2022 and 2021, accounts receivable and notes receivable were from contracts with customers. The balances of notes and accounts receivable as of January 1, 2021 was NT$$902,090.

2. While not considering the collaterals or other credit enhancements, the accounts receivable held by the Group had the maximum exposure of credit risk at $1,503,358 and $1,280,560, respectively, as of December 31, 2022 and 2021.

3. Please refer to Note 12 (2) for the information on credit risk of accounts receivable.

(V) Inventories

Raw materials Work in process Finished goods Merchandise		December 31,2022
	Cost $ 257,443 84,578 74,560 98,708	(Gain from reversal of) loss allowance on decline in market value of inventories ($ 77,998) ( 9,468) ( 37,618) ( 7,675)	Book value
			$ 179,445 75,110 36,942 91,033

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Total Raw materials Work in process Finished goods Merchandise Total	$ 515,289	($ 132,759) December31,2021	$ 382,530 Book value $ 271,229 53,434 47,661 31,393 $ 403,717
	Cost $ 333,094 62,502 66,550 32,526 $ 494,672	(Gain from reversal of) loss allowance on decline in market value of inventories ($ 61,865) ( 9,068) ( 18,889) ( 1,133) ($ 90,955)

The cost of inventories recognized as losses by the Corporate Group.

Cost of goods sold Loss on falling prices of inventory and inventory obsolescence Loss on scrapping of inventory Revenue from sales of leftovers	2022 $ 5,609,401 26,310 11,169 ( 4,387) $ 5,642,493	2021
		$ 4,660,299 7,683 - -
		$ 4,667,982

(VI) Investment under Equity Method

Investment under Equity Method
Affiliates: Advagene Biopharma Co., Ltd. Weida Hi-Tech Co., Ltd.	December 31,2022 $ 40,485 84,080 $ 124,565	December31,2021
		$ 76,809 87,898
		$ 164,707

The book value and the share of operating results of each of the Group's insignificant affiliates are summarized as follows:

are summarized as follows:
Net loss of current period from continuing operations	2022 ($ 61,296)	2021
		($ 80,385)

As of December 31, 2022, the Group held 30.73% and 28.20% of the shares of Advagene Biopharma Co., Ltd. and Weida Hi-Tech Co., Ltd., respectively, and held 30.76% and 28.20%, respectively, as of December 31, 2021. The Group was the single largest shareholder of the companies. However, the Group did not hold a majority of the Board of Directors' seats and therefore did not actually participate in the business decisions and operating policies, including strategic decisions (such as financing, acquisitions, personnel and dividend policies) of Advagene Biopharma and Weida Hi-Tech. The Group's shareholding alone does no reach the

~38~

statutory attendance percentage of shareholders meetings, indicating that the Group has no actual ability to direct relevant activities. Therefore it is judged that the Group has no control over the companies, and only has a significant influence on them.

~39~

(VII) Property, plant and equipment

January 1, 2022 Cost Accumulated depreciation 2022 January 1 Add - Cost Disposals - Cost Disposal - Accumulated depreciation Depreciation Reclassification December 31 December 31, 2022 Cost Accumulated depreciation	Buildings and structures (includingland) $ 2,327,441 ( 654,360) $ 1,673,081 $ 1,673,081 363,663 - - ( 127,097) ( 108,902) $ 1,800,745 $ 2,538,391 ( 737,646) $ 1,800,745	Machinery and equipment	Office equipment $ 46,490 ( 21,271) $ 25,219 $ 25,219 13,473 ( 29) 29 ( 10,659) 3,019 $ 31,052 $ 65,406 ( 34,354) $ 31,052	Transportation equipment $ 6,544 ( 3,444) $ 3,100 $ 3,100 654 - - ( 844) - $ 2,910 $ 8,466 ( 5,556) $ 2,910	Mold equipment $ 18,784 ( 6,472) $ 12,312 $ 12,312 6,677 - - ( 7,036) 5,728 $ 17,681 $ 313,370 ( 295,689) $ 17,681	Other equipment $ 63,751 ( 5,504) $ 58,247 $ 58,247 40,174 ( 65,269) 64,352 ( 16,215) 270,477 $351,766 $ 595,668 ( 243,902) $351,766	Unfinished construction and equipment under acceptance $ 246,016 - $ 246,016 $ 246,016 520,043 - - - ( 228,046) $ 538,013 $ 538,013 - $ 538,013	Total
		$ 3,631,853 ( 1,563,467)						$ 6,340,879 ( 2,254,518)
		$ 2,068,386						$ 4,086,361
		$ 2,068,386 1,370,721 ( 391,644) 391,565 ( 354,072) 56,538						$ 4,086,361 2,315,405 ( 456,942) 455,946 ( 515,923) ( 1,186)
		$ 3,141,494						$ 5,883,661
		$ 5,286,246 ( 2,144,752)						$ 9,345,560 ( 3,461,899)
		$ 3,141,494						$ 5,883,661

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Buildings and structures (includingland) January 1, 2021 Cost $ 1,830,994 Accumulated depreciation( 566,920) $ 1,264,074 2021 January 1 $ 1,264,074 Add - Cost 288,981 Disposals - Cost - Disposal - Accumulated depreciation - Depreciation ( 88,496) Consolidated entities change and reclassification 273,713 Reclassification - Cost ( 66,247) Reclassification - Accumulated depreciation 1,056 Consolidated transfer in - Net exchange differences - Cost - Net exchange differences - Accumulated depreciation - December 31 $ 1,673,081 December 31, 2021 Cost $ 2,327,441 Accumulated depreciation( 654,360) $ 1,673,081	Buildings and structures (includingland)	Machinery and equipment	Office equipment $ 28,540 ( 15,004) $ 13,536 $ 13,536 14,755 ( 2,638) 1,986 ( 8,256) - - - 5,844 ( 12) 3 $ 25,218 $ 46,490 ( 21,271) $ 25,219	Transportation equipment	Mold equipment $ 10,391 ( 6,390) $ 4,001 $ 4,001 17,408 ( 9,015) 4,915 ( 4,997) - - - - - - $ 12,312 $ 18,784 ( 6,472) $ 12,312	Otherequipment $ 39,856 ( 17,539) $ 22,317 $ 22,317 74,318 ( 68,218) 36,008 ( 23,973) - - - 17,795 - - $ 58,247 $ 63,751 ( 5,504) $ 58,247	Unfinished construction and equipment under acceptance	Total
		$ 2,931,096 ( 1,273,724)		$ 3,675 ( 2,620)			$ 135,172 -	$ 4,979,724 ( 1,882,197)
	$ 1,264,074	$ 1,657,372		$ 1,055			$ 135,172	$ 3,097,527
		$ 1,657,372 620,121 ( 63,065) 18,195 ( 307,938) - 57,266 - 86,425 11 -		$ 1,055 2,876 - - ( 831) - - - - ( 7) 7			$ 135,172 231,389 - - - - ( 120,545) - - - -	$ 3,097,527 1,249,848 ( 142,936) 61,104 ( 434,491) 273,713 ( 129,526) 1,056 110,064 ( 8) 10
	$ 1,673,081	$ 2,068,387		$ 3,100			$ 246,016	$ 4,086,361
		$ 3,631,853 ( 1,563,467)		$ 6,544 ( 3,444)			$ 246,016 -	$ 6,340,879 ( 2,254,518)
	$ 1,673,081	$ 2,068,386		$ 3,100			$ 246,016	$ 4,086,361

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1. The Group had no interest capitalization for investment property in 2022 and 2021.

2. The major components of the Group's buildings and structures include land, buildings and factory renovation projects. Except for land, they are depreciated for 5 to 56 years.

3. Information on property, plant and equipment pledged to others as collateral is provided in Note 8.

4. The abovementioned property, plant and equipment of the Group are for self-use.

5. (VIII) Leasing arrangements - lessee

6. The underlying assets leased by the Group include land, buildings and company vehicles. Leasing contracts are typically made for periods of 3 to 20 years. Lease contracts are negotiated separately and include a variety of terms and conditions. There are no restrictions for the leased assets, except that they cannot be used as loan collaterals.

7. The lease periods of other equipment leased by the Group did not exceed 12 months.

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

Land Buildings and structures Transportation equipment (company vehicles) Other equipment Land Buildings and structures Machinery and equipment Transportation equipment (company vehicles) Other equipment	December 31,2022 Bookvalue $ 507,948 1,018 16,241 25,404 $ 550,611 2022 Depreciation $ 25,727 11,781 - 9,640 1,854 $ 49,002	December31,2021
		Bookvalue
		$ 536,478 70,758 18,683 26,733
		$ 652,652
		2021
		Depreciation
		$ 18,545 12,894 6,060 6,470 -
		$ 43,969

1. The increase in the right-of-use assets was $16,769 and $188,920 for 2022 and 2021, respectively.

2. The information on profit or loss items related to lease contracts is as follows:

Items affecting current profit and loss Interest expenses on lease liabilities Expenses for short-term lease contracts Lease of low-value assets	2022 $ 7,012 6,283 2,785	2021
		$ 5,784 3,491 266

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1. The Group's total cash outflow on leases for 2022 and 2021 was $71,636 and $73,523, respectively.

2. Options to extend or terminate leases

In determining lease terms, the Corporate Group takes into consideration all facts and circumstances that create economic incentives to exercise an option to extend or terminate leases. The assessment of lease period is reviewed if a significant event occurs which affects the assessment of options to extend or options not to terminate.

• (IX) Leasing arrangements - lessor

• The Corporate Group leases out assets such buildings. The lease contracts are typically made for periods of 1 to 2 years. The terms of lease contracts are negotiated separately and include various terms and conditions. In order to preserve the condition of leased assets, the Group usually requires lessees not to pledge the underlying leased assets.

• The Group recognized rental income of $19,276 and $20,933 based on operating lease contracts in 2022 and 2021, respectively, and none of the lease contracts were variable lease payments.

• The maturity analysis of the undiscounted lease payments under the operating leases is as follows:

follows:
2022 2023 2024	December 31, 2022 $ - 14,476 786 $ 15,262	December 31, 2021
		$ 13,613 2,043 -
		$ 15,656

(X) Real estate investment

Real estate investment
January 1, 2022 Cost Accumulated depreciation 2022 January 1 Depreciation December 31 December 31, 2022 Cost Accumulated depreciation	Buildings and structures
	$ 184,105 ( 10,491)
	$ 173,614
	$ 173,614 ( 3,268) $ 170,346
	$ 184,105 ( 13,759)
	$ 170,346

Buildings and structures

January 1, 2021

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Cost Accumulated depreciation 2021 January 1 Business merger and transfer out Reclassification - Cost Reclassification - Accumulated depreciation Depreciation December 31 December 31, 2021 Cost Accumulated depreciation	$ 330,129 ( 6,458)
	$ 323,671
	$ 323,671 ( 273,713) 129,526 ( 1,056) ( 4,814)
	$ 173,614
	$ 184,105 ( 10,491)
	$ 173,614

1. Rental income and direct operating expenses of investment real estate:

Rental income from investment property Direct operating expenses incurred by investment properties that generate rent income in the period	2022 $ 16,436 $ 2,641	2021
		$ 16,268
		$ 5,311

1. The fair value of the investment property held by the Group as of December 31, 2022 and 2021 were $165,392 and $168,813, respectively. They were valuated using the income method and were of Level 3 fair value, and the major assumptions are as follows:

Discount rate Annual rent (net income) Number of years	December 31, 2022 7.09% $ 11,285 45~50	December 31, 2021
		4.49% $ 16,286 45~50

1. No capitalization of interest for investment property in 2022 and 2021.

2. As of December 31, 2022 and 2021, the investment properties had been used as collaterals. Intangible assets

Intangible assets
January 1 Cost Accumulated amortization and			2022
	Trademark and concession	Computer software	Patents $ 9,592 ( 5,735)	Goodwill $ 220,774 -	Total
	$ 272,017 ( 9,506)	$ 68,980 ( 59,318)			$ 571,363 ( 74,559)

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impairments $ 262,511 January 1 $ 262,511 Addition - From separate acquisition Acquired - Amortization expense ( 37,902) December 31 $ 224,609 December 31 Cost $ 272,017 Accumulated amortization and impairments ( 47,408) $ 224,609 Trademark and concession January 1 Cost $ 98,223 Accumulated amortization and impairments ( 1,403) $ 96,820 January 1 $ 96,820 Consolidated transfer in 173,790 Addition - From separate acquisition Acquired 2,462 Amortization expense ( 10,561) December 31 $ 262,511 December 31 Cost $ 272,017 Accumulated amortization and impairments ( 9,506) $ 262,511			$ 3,857 $ 3,857 - ( 1,961) $ 1,896 $ 9,592 ( 7,696) $ 1,896 2021	$220,774 $ 220,774 - - $220,774 $ 220,774 - $220,774
	$ 262,511	$ 9,662			$496,804
	$ 262,511 - ( 37,902)	$ 9,662 45,767 ( 5,528)			$ 496,804 45,767 ( 45,391)
	$ 224,609	$ 49,901			$497,180
	$ 272,017 ( 47,408)	$ 114,747 ( 64,846)			$ 617,130 ( 119,950)
	$ 224,609	$ 49,901			$497,180
	Trademark and concession	Computer software	Patents $ 9,522 ( 5,224) $4,298 $ 4,298 - 70 ( 511) $ 3,857 $ 9,592 ( 5,735) $ 3,857	Goodwill $ 69,173 - $69,173 $ 69,173 151,601 - - $220,774 $ 220,774 - $220,774	Total
	$ 98,223 ( 1,403)	$ 54,079 ( 50,646)			$ 230,997 ( 57,273)
	$ 96,820	$ 3,433			$ 173,724
		$ 3,433 2,836 10,557 ( 7,164)			$ 173,724 328,227 13,089 ( 18,236)
	$ 262,511	$ 9,662			$ 496,804
	$ 272,017 ( 9,506)	$ 68,980 ( 59,318)			$ 571,363 ( 74,559)
	$ 262,511	$ 9,662			$ 496,804

(XI) Other Non-Current Assets

her Non-Current Assets
Prepayments for equipment Refundable deposit	December 31, 2022 $ 1,293,001 52,758	December 31, 2021
		$ 671,105 15,826

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Others Total	3,378 $ 1,349,137	4,049
		$ 690,980

(XII) Short Term Loans Type of December 31, 2022 Range of interest Collateral borrowings rate Bank borrowings Credit loan $ 1,618,197 1.06%~2.675% None Secured 1.25%~2.75% Certificates of deposit, reserve borrowings accounts, stocks of listed and OTC 3,006,328 companies, treasury stock and investment properties. $ 4,624,525

Type of Range of interest borrowings December 31, 2021 rate Collateral Bank borrowings Credit loan $ 1,685,766 0.90%~2.60% None Secured Certificates of deposit, reserve borrowings 2,691,000 1.04%~2.45% accounts, stocks of listed and OTC companies, treasury stock and investment properties. $ 4,376,766

The interest expenses recognized in profit and loss in 2022 and 2021 were $77,598 and $27,734, respectively.

(XIII) Other Payables

$27,734, respectively. Other Payables
Payroll and bonus payable Remunerations payable to employees and directors Payable on equipment Machine maintenance payable Others	December 31, 2022 $ 111,894 129,630 111,919 51,362 432,408 $ 837,213	December 31, 2021
		$ 78,558 196,679 85,822 29,411 351,538
		$ 742,008

(XIV) Corporate bonds payable

Corporate bonds payable
Corporate bonds payable Less: Amount of exercised conversion options Less: discount on corporate bonds payable Less: Corporate bonds matured in one year or a business cycle or have the	December 31, 2022	December 31, 2021
	$ 3,000,000 ( 324,400) ( 66,556)	$ 2,000,000 ( 258,700) ( 84,251)
	2,609,044	1,657,049

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put option exercised - - $ 2,609,044 $ 1,657,049

1. The terms of issuance for the Group's 3rd domestic unsecured convertible bonds are as follows:

2. (1) The Group has been approved by the competent authority to raise and issue $2,000,000 of the 3rd domestic unsecured convertible bonds, with a coupon rate of 0% and an issuance period of 5 years from August 3, 2021 to August 3, 2026. The convertible bonds are repayable in cash at par value on maturity. The convertible bonds were listed for trading on August 3, 2021.

3. (2) The bondholders may request the conversion of the convertible bonds into the Group's common shares at any time from the day after the expiration of three months from the date of issuance of the corporate bonds to the maturity date, except during the period when the transfer of the corporate bonds is suspended in accordance with the regulations or laws, and the rights and obligations of the converted common shares are the same as those of the original issued common shares.

4. (3) The conversion price of the convertible bonds is determined in accordance with the pricing model stipulated in the Measures, and the conversion price will be adjusted in accordance with the pricing model stipulated in the Conversion Measures in the event that the Group is subject to anti-dilution provisions. The conversion price will be reset on the base date set by the Regulations in accordance with the pricing model stipulated in the Conversion Measures. As of December 31, 2022, the conversion price was NT$85 per share.

5. (4) If the closing price of the Company's common stock exceeds 30% of the then conversion price for 30 consecutive business days from the day following the third month of the issuance of the convertible bonds to the 40th business day prior to the expiration of the issuance period, the Company may redeem the outstanding corporate bonds within the next 30 business days at the par value of the corporate bonds in cash.

6. (5) If the outstanding balance of the convertible bonds is less than 10% of the total par value of the corporate bonds issued, the Company may redeem the convertible bonds at any time thereafter for cash at the par value of the corporate bonds, from the day following the third month of the issuance of the corporate bonds to the 40th business day prior to the expiration of the issuance period.

7. (6) As of December 31, 2022, a total of $324,400 in face value had been converted into 3,733 thousand shares of common stock.

8. Upon issuance of convertible bonds, the Group separated the conversion options from the components of liabilities in accordance with IAS 32, “Financial Instruments: Presentation,” and recorded “capital surplus - stock options” at $406,616. The embedded repurchase and repurchase rights are separated from the principal contractual debt instruments in accordance with IFRS 9, “Financial Instruments”, because they are not closely related to the economic characteristics and risks of the principal contractual debt instruments, and are recorded as “financial assets or liabilities at fair value through profit or loss” on a net basis. The effective interest rate of the master contract debt after the separation was 0.0902%.

9. First series domestic secured corporate bonds

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In order to raise the Group's working capital, the board of directors resolved to approve on August 5, 2022 the issue of the first series domestic secured corporate bond. The issue has been reported to and approved by the Taipei Exchange, and the terms are as follows:

• (1) Total amount of issue: According to the different issue conditions, there are two types of bonds, A and B, of which A is issued with an amount of $300,000, and B is issued with an amount of $200,000, totaling $500,000.

• (2) Issue period: Five years, issued on September 28, 2022, and matured on September 28, 2027.

• (3) Coupon rate and repayment method of principal and interest: Both Bond A and Bond B have a fixed annual coupon rate of 1.80%. Simple interest is calculated and paid once a year, and the principal is repaid in cash at the face value of the bond at maturity.

• (4) Guarantee method: The Company's bonds are guaranteed by the joint delegation guarantee contract signed and the obligation and the contract of guarantee for performance of corporate bonds signed by major banks.

• Second series domestic secured convertible corporate bonds

In order to raise the Group's working capital, the board of directors resolved to approve on August 5, 2022 the issue of the second series domestic secured convertible corporate bond. The issue has been reported to and approved by the Taipei Exchange, and the terms are as follows:

• (1) Total amount of issue: According to the different issue conditions, there are two types of bonds, A and B, of which A is issued with an amount of $300,000, and B is issued with an amount of $200,000, totaling $500,000.

• (2) Issue period: Five years, issued on December 27, 2022, and matured on December 27, 2027.

• (3) Coupon rate and repayment method of principal and interest: Bond A has a fixed annual coupon rate of 2.20% and Bond B has a fixed annual coupon rate of 2.38%. Simple interest is calculated and paid once a year, and the principal is repaid in cash at the face value of the bond at maturity.

• (4) Guarantee method: The Company's bonds are guaranteed by the joint delegation guarantee contract signed and the obligation and the contract of guarantee for performance of corporate bonds signed by major banks.

(XV) Long-term Loans

Type of borrowings Long-term bank borrowings Secured borrowings Secured borrowings	Borrowing period and payment method Range of interest rate Repaid in instalments and different amounts according to the agreed period between December 28, 2021 and January 28, 2027. 2.425% Repaid in instalments and different amounts according to the agreed period between December 27, 2021 and December 27, 2024. 2.410%	Collateral Houses and buildings and machine and equipment Buildings and structures	December 31, 2022
			$ 1,250,000 250,000

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Secured borrowings Repaid in instalments and different amounts according to the agreed period between June 12, 2018 and December 15, 2026. 1.730%~ 3.125% Machinery and equipment Secured borrowings Repaid in instalments and different amounts according to the agreed period between December 28, 2022 and December 27, 2032. 2.070% Buildings and structures and investment properties Secured borrowings January 24, 2022 to January 24, 2027, the interest is paid monthly together with the principal. 1.500%~ 2.875% None (responsible person’s guarantee) Other long-term borrowings Secured borrowings Principal is amortized from October 29, 2021 to September 16, 2027 3.970% Machinery and equipment Secured borrowings March 25, 2021 to July 29, 2027, the interest is paid monthly together with the principal. 2.450%~ 8.201% Machinery and equipment Credit loan December 30, 2021 to April 30, 2024, the interest is paid together with the principal. 7.613% None Secured borrowings July 10, 2022 to June 10, 2027, the interest is paid monthly together with the principal. 4.250% Machinery and equipment Less: Long-term borrowings (including current portion)	1,050,407 850,000 8,247 89,655 90,068 14,240 176,830
	3,779,447 ( 611,473)
	$ 3,167,974

Range of Type of Borrowing period and interest December 31, borrowings payment method rate Collateral 2021 Long-term bank borrowings Secured Repaid in instalments and 1.800% Buildings and $ 1,250,000 borrowings different amounts structures, according to the agreed machinery equipment and period between December investment 28, 2021 and January 28, property 2027.

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Secured borrowings Repaid in instalments and different amounts according to the agreed period between December 27, 2021 and December 27, 2024. 1.580% Buildings and structures Secured borrowings Repaid in instalments and different amounts according to the agreed period between December 27, 2021 and December 15, 2026. 1.300% Machinery and equipment Secured borrowings Repaid in instalments and different amounts according to the agreed period between November 9, 2020 and November 9, 2023. 1.440% Buildings and structures and investment properties Secured borrowings Repaid in instalments and different amounts according to the agreed period between September 27, 2017 and December 29, 2026. 1.000%~ 3.730% Machinery, equipment and reserve account (Note) s: Long-term borrowings (including current portion)	250,000 300,000 850,000 72,199
	2,722,199 ( 70,391)
	$ 2,651,808

Less: Long-term borrowings (including current portion)

Note: According to the loan contract provisions of some banks, the Group shall maintain a specific debt-to-equity ratio and interest solvency every six months during the loan duration.

(XVI) Pensions

1. (1) The Company and its domestic subsidiaries operate a defined benefit pension plan in accordance with the Labor Standards Act, which cover 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 six months prior to retirement. The Company and its domestic subsidiaries contribute a monthly amount equal to 2% of employees’ monthly salaries and wages to a retirement fund at the Bank of Taiwan, the trustee, under the name of the independent retirement fund committee. Also, the Company and its domestic subsidiaries would assess the balance in the aforementioned labor pension reserve account by December 31, every year. If the account balance is not enough to pay the pension calculated by the aforementioned method to the employees expected to

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qualify for retirement in the following year, the Company and its domestic subsidiaries will make contribution for the deficit by the end of next March.

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

Present value of defined benefit obligations Fair value of plan assets Defined Benefit Liabilities	December 31, 2022	December 31, 2021
	($ 21,458) 5,861	($ 22,899) 7,990
	($ 15,597)	($ 14,909)

(3) Changes in net defined benefit liabilities are as follows:

Present value of defined benefit obligations 2022 BalanceonJanuary 1 ($ 22,899) Current service cost ( 61) Interest (expense) income ( 171) ( 23,131) Re-measurements: Return on plan assets (excluding amounts included in interest income or expense) - Change in financial assumptions 1,646 Experience adjustments ( 4,773) ( 3,127) Pension fund contribution - Paid pension 4,800 BalanceonDecember 31 ($ 21,458) Present value of defined benefit obligations 2021 BalanceonJanuary 1 ($ 23,846) Current service cost ( 61) Interest (expense) income( 82) ( 23,989) Re-measurements: Return on plan assets	Present value of defined benefit obligations 2022 BalanceonJanuary 1 ($ 22,899) Current service cost ( 61) Interest (expense) income ( 171) ( 23,131) Re-measurements: Return on plan assets (excluding amounts included in interest income or expense) - Change in financial assumptions 1,646 Experience adjustments ( 4,773) ( 3,127) Pension fund contribution - Paid pension 4,800 BalanceonDecember 31 ($ 21,458) Present value of defined benefit obligations 2021 BalanceonJanuary 1 ($ 23,846) Current service cost ( 61) Interest (expense) income( 82) ( 23,989) Re-measurements: Return on plan assets	Fair value of plan assets	Defined Benefit Liabilities
		$ 7,990 - 67	($ 14,909) ( 61) ( 104)
		8,057	( 15,074)
		471 - -	471 1,646 ( 4,773)
		471	( 2,656)
		2,133 ( 4,800)	2,133 -
		$ 5,861	($ 15,597)
		Fair value of plan assets $ 5,723 - 22 5,745	Defined Benefit Liabilities
			($ 18,123) ( 61) ( 60)
	( 23,989)		( 18,244)

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(excluding amounts included in interest income or expense) 321 Change in financial assumptions 1,068 Change in demographic assumptions ( 1,286) Experience adjustments 987 1,090 Pension fund contribution - Paid pension - BalanceonDecember 31 ($ 22,899)	99 - - -	420 1,068 ( 1,286) 987
	99	1,189
	2,146 -	2,146 -
	$ 7,990	($ 14,909)

(4) 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 the aforementioned rates, government shall make payments for the deficit after being authorized by the Regulator. The Company has no right to participate in managing and operating the fund and hence the Company is unable to disclose the classification of fair value of plan asset in accordance with IAS19 paragraph 142. The composition of fair value of plan assets as of December 31, 2022 and 2021 is given in the Annual Labor Retirement Fund Utilization Report announced by the government.

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

Discount rate Future salary increases	2022 1.4% 2.125%	2021
		0.75%
		2.125%~2.50%

Assumptions regarding future mortality experience are set based on actuarial advice in accordance with the published statistics and experience of various countries.

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

December 31, 2022 Effect on present value of defined benefit obligation December 31, 2021 Effect on present value of defined benefit obligation	Discount rate 0.25% increase 0.25% decrease ($ 641) $ 666 ($ 697) $ 725	Future salary increases	Future salary increases
	0.25% increase ($ 641) ($ 697)	0.25% increase $ 646 $ 698	0.25% decrease
			($ 626)
			($ 675)

The sensitivity analysis above analyzes the impact from changing one of the assumptions while others remain constant. In practice, more than one assumption may change all at once. The sensitivity analysis is the same with the method used to calculate the net pension liabilities of the balance sheet.

• (6) The expected contributions to the defined benefit pension plans of the Group for the year ending December 31, 2023 are $2,133

• (7) As of December 31, 2022, the weighted average duration of the retirement plan is 13 years.

• (1) Effective July 1, 2005, the Company and its domestic subsidiaries have established a defined contribution pension plan (hereinafter referred to as the “New Plan”) under the Labor Pension Act (hereinafter referred to as the “Act”), covering all regular employees with domestic citizenship. Under the New Plan, the Company and its domestic subsidiaries contribute 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.

• (2) For 2022 and 2021, the pension costs recognized by the Corporate Group in accordance with the abovementioned pension measures were $35,520 and $28,606, respectively.

(XVII) Capital

1. As of December 31, 2022, the Company's authorized capital was $5,000,000, consisting of 500,000 thousand shares (including 20,000 thousand shares which can be subscribed to as employee stock options). The paid-in capital was $2,564,465 with a par value of NT$10. All proceeds from shares issued have been collected.

The movements in the number of the Company's common stocks outstanding are as follows:

follows:
January 1 Conversion of convertible bonds Treasury stocks transfer to employees	2022 214,107 773 -	Unit: Thousand shares 2021
		205,632 2,960 20,000

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Treasury Stock Buyback Treasury stock donation December 31	( 10,000) 350 205,230	( 14,485) -
		214,107

1. Treasury stock

2. (1) Reasons for repurchase of shares and changes in the quantity:

Company name of the shareholding Reasons for buyback Subsidiary - Youe Chung Capital Corporation Subsidiary holds the company's stock The Company Transfer shares to employees Company name of the shareholding Reasons for buyback Subsidiary - Youe Chung Capital Corporation Subsidiary holds the company's stock The Company Transfer shares to employees	December	31, 2022
	Number of shares (thousand) 36,731 14,485 51,216 December	Bookvalue
		$ 522,698 1,256,281
		$1,778,979
		31,2021
	Number of shares (thousand) 37,081 4,485 41,566	Bookvalue
		$ 527,678 413,745
		$ 941,423

• (2) For 2022 and 2021, the Group's share-based payment arrangements were as follows:

Type of arrangement	Grant date	Quantity granted	Contract Period	Vesting conditions
Transfer of treasury shares to employees Transfer of treasury shares to employees Transfer of treasury shares to employees Transfer of treasury shares to employees	2022.01.26 2021.05.05 2021.03.15 2021.02.03	4,485 3,000 7,000 3,000	Immediate vesting Immediate vesting Immediate vesting Immediate vesting	Note Note Note Note

Note: The Company grants treasury stocks to employees of the Company and its subsidiaries.

• (3) Remuneration costs related to the transfer of treasury stocks of the Group in 2022 and 2021 were $19,061 and $176,980, respectively

• (4) The Securities and Exchange Act stipulates that the percentage of the Company's repurchase of outstanding shares shall not exceed 10% of the Company's total issued shares, and the total value of shares purchased shall not exceed the retained earnings

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plus the premium of issued shares and the amount of realized capital reserve.

• (5) The shares bought back by the Company in accordance with the Securities and Exchange Act shall not be pledged. Before transfer, shareholders are not entitled to the shareholders' rights.

• (6) According to the provisions of the Securities and Exchange Act, the share repurchased to be transferred to employees shall be transferred within 5 years from the date of the purchase. If the transfer is not made within the time limit, the shares are deemed as unissued shares, and change of registration shall be made to cancel the shares. In order to maintain the Company’s credit and shareholders equity, the shares bought back should have the registration changed to cancel the shares within six months from the date of the purchase.

• (7) The Company's stock held by the subsidiary Youe Chung Capital is treated as treasury stock. As of December 31, 2022 and 2021, Youe Chung Capital held 36,731 thousand and 37,081 shares, respectively, of the Company. The average book value per share was NT$14.23, and the fair value per share was NT$84.7 and NT$108.00, respectively. The cost of transferring treasury stocks is calculated based on the book value of the Company's stock held by Youe Chung Capital and the Company's indirect shareholding during each period.

• (8) The Company was approved by the Board of Directors on February 3, 2021, to buy back 10,000 thousand shares of the Company in the centralized trading market and transfer them to employees, and the number of shares repurchased accounted for 3.96% of the total issued shares. The buy-back was completed and executed between February 4, 2021 and April 3, 2021.

• (9) The Company was approved by the Board of Directors on November 3, 2021, to buy back 6,000 thousand shares of the Company in the centralized trading market and transfer them to employees, and the number of shares repurchased accounted for 2.37% of the total issued shares. The buy-back of 4,485 thousand shares was completed and executed between November 4, 2021 and January 3, 2022.

• (10) The Company was approved by the Board of Directors on May 6, 2022, to buy back 10,000 thousand shares of the Company in the centralized trading market and transfer them to employees, and the number of shares repurchased accounted for 3.91% of the total issued shares. The buy-back of 10,000 thousand shares was completed and executed between May 9, 2022 and July 8, 2022.

(XVIII) Capital surplus

In accordance with the Company Act, any capital surplus arising from paid-in capital in excess of the 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 Securities and Exchange Act requires that the amount of capital surplus to be capitalized, as above, should not exceed 10% of paid-in capital each year. Capital reserves should not be used to cover accumulated deficit unless the legal reserve is insufficient. The following is a breakdown of the capital reserve:

==> picture [460 x 58] intentionally omitted <==

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Conversion of convertible bonds Distribution of cash from capital surplus Adjustment of capital reserve by dividends paid to subsidiaries Changes in ownership interests in subsidiaries recognized Changes in shares of affiliates recognized under the equity method Share-based payment transaction December 31, 2022	68,829 ( 241,189) - - - - $ 96,650	- - 73,463 - - - $768,509	- - - 10,169 - 2,700 $ 17,788	( 13,357) - - - - 14,131 $295,848	- - - - 21,107 - $ 68,427	- - - - - - $4,459	55,472 ( 241,189) 73,463 10,169 21,107 16,831
							$1,251,681

January 1, 2021 Conversion of convertible bonds Adjustment of capital reserve by dividends paid to subsidiaries Changes in shares of affiliates recognized under the equity method Share-based payment transaction Convertible bond stock options Acceptance of gifts from shareholders Payment of overdue unclaimed dividends to shareholders December 31, 2021	Issue premiums	Trading of treasurystock	Changes in ownership interests in subsidiaries recognized	stock option $ - ( 52,595) - - ( 58,947) 406,616 - - $295,074	Equity changes in affiliates	Others	Total
	$ - 269,010 - - - - - -	$ 411,379 - 55,622 ( 76) 228,121 - - -	$ 6,097 - - ( 1,178) - - - -		$ 18,540 - - 28,780 - - - -	$ 3,882 - - - - - 586 ( 9)	$ 439,898 216,415 55,622 27,526 169,174 406,616 586 ( 9)
	$269,010	$695,046	$ 4,919		$ 47,320	$ 4,459	$ 1,315,828

(XIX) Retained earnings

1. According to the Articles of Incorporation, any surplus from profit concluded at the end of year by the Company is first subject to reimbursement of previous losses and payment of taxes, followed by 10% provision for legal reserve and provision or reversal of special reserve as the laws may require. Any earnings remaining shall be distributed as shareholders’ dividends in whole or partially.

2. The Company takes into account the overall business environment, industrial growth, and the Company's long-term financial planning for stable operation and development to adopt a residual dividend policy, which is mainly based on the Company's future capital budgeting plan to measure the annual capital needs. After using the retained earnings for funding, the remaining surplus will be distributed in the form of dividends, and the distribution steps are shown as follows:

3. (1) Decide on the best capital budgeting.

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• (2) Decide on the financing required for one of the capital budgeting items.

• (3) Decide on the amount of the financing to be supported by retained earnings (methods such as cash capital increase or corporate bonds and so on can be adopted as support).

• (4) After retaining the portion required for operation needs out of the earnings remainder, the rest should be distributed to shareholders in the form of dividends. Cash dividends distribution proportion should not be lower than 20% of the total amount of dividends for the distribution proportion of the Company’s dividends.

• 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 the 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.

• 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.

• The Company's Board meeting resolved on March 3, 2023 to distribute a cash dividend of NT$2.3 per common share from the 2022 earnings, with a total dividend of $556,511. In addition, a cash distribution of NT$0.2 per share was made from capital surplus for a total of NT$48,392.

• The Company's board of directors resolved on May 26, 2022 to distribute a cash dividend of NT$1.00 per ordinary share from the 2021 surplus with a total dividend of $255,674. NT$1.00 per share is to be distributed from the capital surplus, with a total of $255,674. In addition, as the Company implemented the transfer of 14,485 thousand shares of treasury stock to employees, which changed the number of outstanding shares to 241,189 thousand shares, so the cash dividend was adjusted to $241,189 to be distributed from the capital surplus of $241,189.

• The Company's shareholders’ meeting resolved on July 5, 2021 to distribute a cash dividend of NT$1.50 per common share from the 2020 earnings, with a total dividend of $379,071.

(XX) Other equity interests

$379,071. ther equity interests
January 1 Difference in foreign currency translation: - Group December 31 January 1 Difference in foreign currency		2022
	Unrealized gains and losses ($ 2,666) - ($ 2,666)	Foreign currency translation $ 6,698 6,476 $ 13,174 2021	Total
			$ 4,032 6,476
			$ 10,508
	Unrealized gains and losses ($ 2,666)	Foreign currency translation $ 3,555	Total
			$ 889

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translation:

translation:
- Group December 31 perating revenue Revenue from contracts with	($ 2,666) customers $		3,143 $ 6,698 2022 7,741,118 $		3,143 $ 4,032 2021
	customers		2022 7,741,118
		$		$	6,077,362

(XXI) Operating revenue

1. Segmentation of revenue from contracts with customers

The Corporate Group derives its revenue from the transfer of goods and services either over time or at a point in time. The revenue can be divided into the following main product lines:

product lines:
2022 Revenue from contracts with external customers Cut-off point of income recognition Income recognized at a particular point in time Income recognized gradually over time 2021 Revenue from contracts with external customers Cut-off point of income recognition Income recognized at a particular point in time Income recognized gradually over time	Photomask and semiconductor segment $ 7,684,054 $ 6,896,734 787,320 $ 7,684,054 Photomask and semiconductor segment $ 6,068,709 $ 5,354,576 714,133 $ 6,068,709	Medical segment $ 57,064 $ 57,064 - $ 57,064 Medical segment $ 8,653 $ 8,653 - $ 8,653	Total
			$ 7,741,118
			$ 6,953,798 787,320
			$ 7,741,118
			Total
			$ 6,077,362
			$ 5,363,229 714,133
			$ 6,077,362

2. Contract Liabilities

• (1) Contract liabilities related to contracts with customers recognized by the Corporate Group:

Contract Assets Contract Liabilities	December 31, 2022 $ 140,231 $ 232,778	December 31, 2021 $ 155,763 $ 179,315	January1,2021 $ 93,809 $ 99,418

• (2) Contract liabilities at the beginning of the period recognized as revenue of the period:

Opening balance of contract liabilities

2022 2021

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Revenue recognized for this period (Including reclassification of other income) $ 114,475 $

55,000

(XXII) Interest income

(XXII) Interest income
Interest from bank deposits Interest income from financial assets measured at amortized cost Other interest incomes (XXIII) Other Incomes Rental income Dividend income Other income - Others (XXIV) Other Gains and Losses Gain (loss) on disposal of property, plant and equipment Disposal of investment gains (losses) Gain on lease modifications Foreign currency exchange gains (losses) Gains (losses) of financial assets at fair value through profit or loss Impairment Loss of Financial Assets Other miscellaneous expenses Other Gains and Losses (XXV) Financial Costs Interest expenses: Bank borrowings Convertible bonds Lease liabilities
		2022
	$ ( ( (	5,024 123,552 103 76,984 801,123) - 3,268) 20,519)
	($ 619,247)		$
		2022

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(XXVI) Expenses by nature

(XXVI) Expenses by nature
Employee benefits expenditure Depreciation Amortization (XXVII) Employee benefits expenditure Payroll expenses Share-based payment to employees Labor and health insurance fees Pension expense Other personnel expenses	2022 $ 1,393,688 568,193 45,391 2022 $ 1,152,751 19,061 116,437 35,684 69,755 $ 1,393,688	2021
		$ 1,200,299 483,274 18,236 2021
		$ 899,267 176,980 61,958 28,727 33,367
		$ 1,200,299

1. According to the Articles of Incorporation, the Company shall distribute not less than 10% of the current year’s profit situation for employee remuneration and not more than 2% of current year’s profit situation for director remuneration. However, profits must first be taken to offset against cumulative losses, if any.

2. For 2022 and 2021, employee remuneration was accrued at $102,000 and $158,000, respectively, and director remunerations was accrued at $18,000 and $30,800, respectively. The abovementioned amounts were listed as payroll expenses.

The remuneration to employees and directors were estimated at 10.05% and 1.77%, respectively, based on the profitability for the year ended December 31, 2022; the remuneration to employees and directors were estimated at 10.18% and 1.98%, respectively, based on the profitability for the year ended December 31, 2021.

The employee remuneration and director remuneration resolved by the Board of Directors for 2021 were $158,000 and $18,000, respectively, which were different from $158,000 and $30,800 recognized in the 2021 financial statement by $0 and $12,800. This is mainly due to changes in estimates which have been adjusted to the income of 2022.

Information about employees remuneration and director remuneration of the Company as resolved by the Board of Directors will be posted in the “Market Observation Post System”.

(XXVIII) Income tax

1. Income tax expense

Components of income tax expense:

ncome tax ncome tax expense Components of income tax expense:
Current tax: Current tax on profits for the year Over provision of prior year's income tax	2022 $ 236,441 ( 17,190)	2021
		$ 239,544 -

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Total current tax Deferred income tax: Origination and reversal of temporary differences Deferred income tax: Income Tax Expense	219,251 8,830 8,830 $ 228,081	239,544
		51,993
		51,993
		$ 291,537

2. Reconciliation between income tax expense and accounting profit

Tax calculated based on profit before tax and statutory tax rate Expenses (benefits) to be excluded according to the tax law Temporary difference of unrecognized deferred income tax assets Tax loss of unrecognized deferred income tax assets Income tax effects of the alternative minimum tax system Changes in assessment of realizability of deferred income tax assets Over provision of prior year's income tax Income Tax Expense	2022	2021 $ 909,863 ( 759,077) ( 1,830) 58,331 35,538 48,712 - $ 291,537
	($ 155,090) 271,967 ( 780) 91,423 17,003 20,748 ( 17,190)
	$ 228,081

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

follows:
Deferred income tax assets: - Temporary differences: Loss on inventory Unrealized exchange loss Others Subtotal Deferred income tax liabilities: - Temporary differences: Unrealized gain on exchange Long-term investments Others Subtotal Total		2022
	January 1	Recognized in profit or loss	December 31
	$ 3,762 ( 521) 4,819	$ 1,525 1,365 ( 1,585)	$ 5,287 844 3,234
	$ 8,060	$ 1,305	$ 9,365
	( 409) ( 74,084) ( 36,496) ( 110,989)	( 3,791) ( 12,717) 6,373 ( 10,135)	( 4,200) ( 86,801) ( 30,123) ( 121,124)
	($ 102,929)	($ 8,830)	($ 111,759)

2021

January 1 Recognized in profit or December 31

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loss

Deferred income tax assets: - Temporary differences: Loss on inventory Unrealized exchange loss Others Subtotal Deferred income tax liabilities: - Temporary differences: Unrealized gain on exchange Long-term investments Others Subtotal Total	$ 394 1,938 -	$ 3,368 ( 2,459) 4,819	$ 3,762 ( 521) 4,819
	$ 2,332	$ 5,728	$ 8,060
	( 287) ( 52,981) -	( 122) ( 21,103) ( 36,496)	( 409) ( 74,084) ( 36,496)
	( 110,989)	( 57,721)	( 110,989)
	($ 108,657)	($ 51,993)	($ 102,929)

1. The effective period of the unused tax losses and unrecognized deferred income tax assets of the Group are as follows:

December 31, 2022

Year of occurrence 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022	Reported amount/Assessed amount 478,805 358,406 634,004 297,633 487,947 506,779 252,514 305,259 572,303 457,113 $ 4,350,763	Amount not yet deducted 478,805 358,406 634,004 297,633 487,947 506,779 252,514 305,259 572,303 457,113 $ 4,350,763	Amount of unrecognized deferred income tax assets 478,805 358,406 634,004 297,633 487,947 506,779 252,514 305,259 572,303 457,113 $ 4,350,763	Last year to be deducted
				112 113 114 115 116 117 118 119 120 121

December 31, 2021

Year of occurrence 2012 2013 2014 2015	Reported amount/Assessed amount 425,658 478,805 358,406 634,004	Amount not yet deducted 425,658 478,805 358,406 634,004	Amount of unrecognized deferred income tax assets 425,658 478,805 358,406 634,004	Last year to be deducted
				111 112 113 114

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2016 2016 2017 2018 2019 2020	297,633 487,947 506,779 252,514 305,259 572,303 $ 4,319,308	297,633 487,947 506,779 252,514 305,259 572,303 $ 4,319,308	297,633 115 487,947 116 506,779 117 252,514 118 305,259 119 572,303 120 $ 4,319,308

1. Deductible temporary difference not recognized as deferred income tax assets

Deductible temporary difference	December 31,2022 $ 362,066	December 31,2021
		$ 365,967

1. The Company’s income tax returns through 2020 have been assessed and approved by the tax authority.

(XXIX) Earnings per share

) Earnings per share
Earnings per share Profit attributable to ordinary shareholders of the parent Diluted Earnings per share Profit attributable to ordinary shareholders of the parent Assumed conversion of all dilutive potential ordinary shares Convertible bonds Employee remuneration Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares Earnings per share Profit attributable to ordinary shareholders of the parent Diluted Earnings per share Profit attributable to ordinary shareholders of the parent		2022
	Amount after tax $ 703,519 $ 703,519 14,422 - $ 717,941	Average weighted share outstanding (thousand shares) 208,572 208,572 19,713 1,473 229,758 2021	Earnings per share (NT$)
			$ 3.37
			$ 3.12
	Amount after tax $ 1,146,610 $ 1,146,610	Average weighted share outstanding (thousand shares) 209,770 209,770	Earnings per share (NT$)
			$ 5.47

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Assumed conversion of all dilutive potential ordinary shares Convertible bonds Employee remuneration Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares	6,713 - $ 1,153,323	3,220 1,791 214,781 $ 5.37

The weighted average number of shares outstanding in 2022 and 2021 has deducted the number of shares held by the Company and the subordinate company Youe Chung Capital deemed as the Company's treasury stock (the number of shares is based on the Company’s shareholding).

(XXX) Business combination

1. On August 2, 2021, the Group acquired 57.39% of the shares of Digital-Can Tech. Co., Ltd. for $139,072 in cash and gained control over Digital-Can Tech. Co., Ltd.

2. (1). The information on the fair value of the acquired assets and assumed liabilities on the acquisition date and the share of non-controlling interests in the acquiree's identifiable net assets for the acquisition of Digital-Can Tech. Co., Ltd. is shown as follows:

as follows:
Acquisition consideration Cash Share of non-controlling interests in the identifiable net assets of the acquiree Fair value of acquired identifiable assets and assumed liabilities Cash Financial assets measured at amortized cost Notes Receivables Accounts Receivables Inventories Prepayments Other Current Assets Property, plant and equipment Intangible assets Other Non-Current Assets Short Term Loans Contract Liabilities Notes Payable Accounts Payable Other Payables Other Current Liabilities	August 2, 2021
	$ 139,072 72,605
	211,677
	24,346 19,600 202 3,251 6,128 2,129 521 64,182 69,565 6,520 ( 500) ( 1,187) ( 6) ( 1,165) ( 8,874) ( 6,174)

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Long-term Loans Deferred Income Tax Other Current Liabilities Total identifiable net assets Goodwill	( 7,843) ( 15,650) ( 300)
	154,745
	$ 56,932

• (2) Non-controlling interest is measured by the proportion of the acquiree's net identifiable assets to the non-controlling interest.

• (3) The fair value of the identifiable net assets acquired as of August 2, 2021 was originally assessed at a provisional amount and the fair value of these net assets was determined after the end of the measurement period as described above. Among them, the initial valuations of PP&P and intangible assets were $55,499 and $0, respectively, which were different from the fair values of $64,182 and $69,565, respectively, identified in the purchase price apportionment report. The consolidated balance sheet as of December 31, 2021 and the consolidated statement of comprehensive income for 2021 were adjusted.

• (4) Since the acquisition of Digital-Can Tech. Co., Ltd. in August 2, 2021, the contribution to operating revenue and net loss before tax have both been $6,036 and ($3,706), respectively. Assuming that Digital-Can Tech. Co., Ltd. has been included in the consolidated reports since January 1, 2021, the operating revenue and net profit before tax of the Group for 2021 are $6,089,369 and $1,161,815, respectively.

• The Group owns 41.43% of Xsense Technology Corporation, and Xsense Technology Corporation and its subsidiary Xsense Technology Corporation (B.V.I.) held a Board of Directors' meeting on March 25, 2021 to re-elect the Chairman of the Board of Directors, and the president of the Company was elected. The new management team in April 2021, led by the President of the Company, is involved in the operating decisions and business policies, including strategic decisions, of Xsense Technology Corporation and its subsidiary, Xsense Technology Corporation (B.V.I.) and therefore the firm is included in the consolidated financial statements.

• (1) The information on the fair value of the acquired assets and assumed liabilities on the acquisition date and the share of non-controlling interests in the acquiree's identifiable net assets for the acquisition of Xsense Technology Corporation is shown as follows:

shown as follows:
Fair value of previously held interests inXsense Technology Corporationat the acquisition date Share of non-controlling interests in the identifiable net assets of the acquiree Fair value of acquired identifiable assets and assumed liabilities Cash Accounts Receivables Other Receivables	April 1, 2021
	$ 154,192 106,819
	$ 261,011
	$ 22,508 18,687 6,690

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Inventories Prepayments Other Current Assets Property, plant and equipment Intangible assets Deferred Income Tax Assets Other Non-Current Assets Short Term Loans Contract Liabilities Notes Payable Accounts Payable Other Payables Other Current Liabilities Deferred Income Tax Other Current Liabilities Total identifiable net assets Goodwill	19,127 27,149 15,607 45,882 107,065 4,819 96,544 ( 40,000) ( 350) ( 4,257) ( 14,617) ( 63,602) ( 12,085) ( 20,846) ( 41,974)
	166,347
	$ 94,664

• (2) Non-controlling interest is measured by the proportion of the acquiree's net identifiable assets to the non-controlling interest.

• (3) The fair value of the identifiable net assets acquired as of April 1, 2021 was originally assessed at a provisional amount and the fair value of these net assets was determined after the end of the measurement period as described above. Among them, the initial valuations of inventory, PP&P and intangible assets were $47,425, $99,856 and $8,574, respectively, which were different from the fair values of $19,127, $45,882 and $107,065, respectively, identified in the purchase price apportionment report. The consolidated balance sheet as of December 31, 2021 and the consolidated statement of comprehensive income for 2021 were adjusted.

• (4) Since the Group merged with Xense Technology Corporation on April 1, 2021, Xense Technology Corporation contributed operating revenue and net loss before tax of $54,810 and ($121,199), respectively. If Xsense Technology Corporation had been merged since January 1, 2021, the Group's operating revenue and net profit before tax would have been $6,098,459 and $1,075,603, respectively, for the year ended December 31, 2021.

(XXXI) Supplemental cash flow information

Investing activities with partial cash payments:

Purchase of property, plant and equipment Add: Prepayments for equipment at the end of the period Opening balance of payable on equipment Less: Prepayments for equipment at the beginning of the period	2022	2021
	$ 2,315,405 1,293,001 85,822 ( 671,105)	$ 1,249,848 671,105 53,809 ( 5,608)

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Ending balance of payable on equipment Cash paid during the year	( 111,919)	( 85,822) $ 1,883,332
	$ 2,911,204

(XXXII) Changes in liabilities arising from financing activities

January 1, 2022 Change in cash flow from financing activities Interest Incomes Interest Paid Other non-cash transactions December 31, 2022	Short Term Loans $ 4,376,766 247,759 - - - $ 4,624,525	Corporate bonds payable $ 1,657,049 997,095 18,103 - ( 63,203) $ 2,609,044	Long-term borrowings (including current portion)	Lease liabilities $ 655,641 ( 55,556) 7,012 ( 7,012) ( 40,416) $ 559,669	Guarantee Deposits Received $ 6,908 27,846 - - - $ 34,754	Total liabilities arising from financing activities
			$ 2,722,199 1,057,248 - - -			$ 9,418,563 2,274,392 25,115 ( 7,012) ( 103,619)
			$ 3,779,447			$ 11,607,439

Short Term Loans January 1, 2021 $ 2,298,718 Change in cash flow from financing activities 2,037,548 Interest Incomes - Interest Paid - Other non-cash transactions 40,500 December 31, 2021 $ 4,376,766	Corporate bondspayable $ - 2,297,099 8,392 - ( 648,442) $ 1,657,049	Long-term borrowings (including current portion) $ 1,732,083 982,273 - - 7,843 $ 2,722,199	Lease liabilities $ 506,926 ( 63,982) 5,784 ( 5,784) 212,697 $ 655,641	Guarantee Deposits Received $ 5,129 1,779 - - - $ 6,908	Total liabilities arising from financing activities
					$ 4,542,856 5,254,717 14,176 ( 5,784) ( 387,402)
					$ 9,418,563

VII. Related Party Transactions

(I) Related parties' names and relationship

Name of the related parties

Relationship with the Group

Xsense Technology Corporation Xsense Technology Corporation (B.V.I.) Taiwan Branch

Affiliate (Note)

Branch Affiliates Weida Hi-Tech Co., Ltd. Affiliates Powerchip Technology Corporation Other related party Image Match Design Inc. Other related party BKS Tec Corp. Other related party Pilot Battery Co.,Ltd. Other related party Taiwan Mask Charity Foundation Other related party

Note: In April 2021, the Group participated in the management and operating policies of Xsense Technology Corporation, including strategic decisions, and therefore included

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the firm in the consolidated financial statements as a consolidated entities as of that date.

• (II) Significant transactions with the related parties

• Operating revenue

gnificant transactions Operating revenue	with the related parties
		2022					2021
Product sales:
Affiliates	$		7,066		$			72
Other related party			28,629					39,099
Total	$		35,695		$			39,171
There are no major abnormalities in the transaction prices and				payment			terms of the	related
party compared to that of non-related parties.
Purchase
		2022					2021
Purchase of merchandise:
Other related party	$			386	$			-
Account receivable from related parties.
		December 31,2022				December31,		2021
Accounts Receivables:
Affiliates	$			325	$			-
Other related party			2,021				16,812
Total	$		2,346		$		16,812
Related-party payables
		December 31,	2022			December31,		2021
Accounts payable:
Other related party	$			284	$			-
cquisition of financial assets
2022: None.
							2021
		Number of shares
	Account item	traded					Acquisition	price
Other related party	Investment under Equity	14,000,000			$			49,000
	Method
Acquisition of other assets
2022: None.
							2021
	Account item						Acquisition	price
Other related party	Intangible assets				$			8,926
Other related party	Fixed assets							1,750

1. Purchase

2. Account receivable from related parties.

3. Related-party payables

4. Acquisition of financial assets

5. Acquisition of other assets

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$ 10,676

Total

7. Others

• (1) Deposits Received:

rs eposits Received:
Other related party ent income: Affiliates Other related party	2022 $ 95 2022 $ - 891 $ 891	2021 $ 95
		2021
		$ 2,010 526
		$ 2,536

• (2) Rent income:

• (3) The Company's subsidiary Youe Chung Capital donated 350,000 shares of stocks, a total of NT$4,980, to the Taiwan Mask Charity Foundation.

• (4) In 2022 and 2021, the Company donated $4,416 and $31,801, respectively, in cash to the Taiwan Mask Charity Foundation.

(III) Compensation of key management personnel

Compensation of key management personnel
Salary and short-term employee benefits Post-employment benefits Other long-term employee benefits Share-based payment to employees Total	2022 $ 55,458 253 15,702 - $ 71,413	2021
		$ 32,110 185 27,501 13,990
		$ 73,786

VIII. Pledged assets

Assets pledged by the Corporate Group as collateral are as follows:

Assets Demand deposit (Recognized as “Financial assets at amortized cost”) Time deposit (Recognized as “Financial assets at amortized cost”) Stocks of publicly traded and OTC companies (recognized as “Financial assets at fair value through profit or loss”) Shares of the Company (recorded as “treasury stock” Note) Buildings and structures (including land)	Book value December 31, 2022 December 31, 2021 $ 124,883 $ 15,338 490,190 40,239 2,682,150 3,486,951 504,454 408,437 1,169,267 1,683,654	Purpose
	December 31, 2022 $ 124,883 490,190 2,682,150 504,454 1,169,267
		Reserve accounts for long- and short-term borrowings Short-term loans and guarantees for goods out of the free zone Short Term Loans Short Term Loans Long-term Loans

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Machinery and equipment and equipment under acceptance Real estate investment Office equipment Other equipment Intangible assets	2,638,893 170,346 2,401 4,470 508 $ 7,787,562	2,471,149 Long- and short- term borrowings 163,042 Long- and short- term borrowings 3,610 Long- and short- term borrowings - Long-term Loans $ 8,272,420

Note: The cost of pledged treasury shares was $504,454, and fair value as of December 31, 2022 was $3,002,615.

IX. Significant Contingent Liabilities and Unrecognized Contract Commitments

(I) Contingencies

None.

(II) Commitments

1. Machine equipment maintenance contracts that have been signed but not yet paid

Machine maintenance	December 31,2022 $ 51,362	December31,2021
		$ 29,411

1. Capital expenditures that have been signed but not yet incurred

December 31, 2022 December 31, 2021 Property, plant and equipment $ 2,065,912 $ 1,666,024

1. Lease agreement

Please see Note 6 (8) and (9)

X. Losses due to major disasters

None.

XI. Major Events after Financial Statement Date

The resolution of the Company's Board on March 3, 2023 passed the appropriation of earnings. Please refer to Note 6 (20) for details.

XII. Others

(I) Capital management

The Group’s objectives when managing capital are to safeguard the Group’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. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt. The Group monitors capital on the basis of the gearing ratio. This ratio is calculated as net debt divided by total capital.

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Net debt is calculated as total borrowings (including “current and non-current borrowings” as shown in the consolidated balance sheet) less cash and cash equivalents. Total capital is calculated as “equity” as shown in the consolidated balance sheet plus net debt.

The Group's strategy in 2022 and 2021 was to borrow long-term loans to purchase machinery and equipment and obtain long-term working capital. For the years ended December 31, 2022 and 2021, the debt-to-capital ratios were as follows:

and 2021, the debt-to-capital ratios were as	follows:
Total borrowings Less: Cash and cash equivalents Net debt Total equity Total capital Debt-to-equity ratio	December 31, 2022 $ 11,013,016 ( 1,749,957) 9,263,059 4,434,207 $ 13,697,266 67.63%	December 31, 2021
		$ 8,756,014 ( 2,681,819)
		6,074,195 4,873,851
		$ 10,948,046
		55.48%

(II) Financial instruments

1. Types of financial instrument

ncial instruments . Types of financial instrument
December 31,2022 Financial assets Financial assets at fair value through profit and loss Mandatory financial assets at fair value through profit or loss $ 4,481,155 Financial assets measured at amortized cost Cash and Cash Equivalents $ 1,749,957 Financial assets measured at amortized cost 668,067 Notes Receivables 1,361 Accounts receivable (Including related parties) 1,503,358 Other accounts receivable (Including related parties) 13,751 Refundable deposit 52,758 $ 3,989,252 Financial liabilities Financial liabilities at fair value through profit or loss Financial liabilities mandatorily measured at fair value through profit or loss $ 5,697 Financial liabilities at amortized cost Short Term Loans $ 4,624,525 Notes Payable 81 Accounts payable (Including related parties) 417,459	December31,2021
	$ 5,037,672
	$ 2,681,819 78,263 63 1,280,560 68,997 15,826
	$ 4,125,528
	$ -
	$ 4,376,766 66 477,232

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Other payables (Including related parties) Corporate bonds payable Long-term borrowings (including current portion) Guarantee Deposits Received Lease liabilities	837,213 2,609,044 3,779,447 34,754 $ 12,302,523 $ 559,669	742,008 1,657,049 2,722,199 6,908
		$ 9,982,228
		$ 655,641

2. Risk management policies

• (1) The Group’s activities expose it to a variety of financial risks, including market risk (exchange rate, interest rate and price), credit risk and liquidity risk. The Group's overall risk management programme focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Group's financial position and performance.

• (2) Risk management is carried out by a central finance department (Group finance) under policies approved by the Board of Directors. Group finance identifies, evaluates and hedges financial risks in close collaboration with the Group’s operating units. The Board provides written principles for overall risk management, as well as written policies covering specific areas and matters, such as currency exchange risk, interest rate risk, credit risk, the use of derivatives and non-derivative financial instruments and investment of excess liquidity.

• Significant financial risks and degrees of financial risks

• (1) Market risk

A. Foreign exchange risk

The Group's operations involve certain non-functional currencies (the Company’s and certain subsidiaries’ functional currency is the New Taiwan dollar (NTD), and for other certain subsidiaries, the functional currency is the US Dollars, Japanese Yen and China's Renminbi (RMB)), so it is subject to the impact of exchange rate fluctuation. The details of assets and liabilities denominated in foreign currencies whose values that would be materially affected by exchange rate fluctuations are as follows:

(Foreign currency: functional currency) Financial assets Monetary items USD : NTD RMB : NTD JPY : NTD Financial liabilities Monetary items	December 31,2022	December 31,2022	December 31,2022
	Foreign currency (in thousands) USD 67,712 CNY 30,598 JPY 47,877	Exchange rate 30.71 4.408 0.232	Carrying amount (in thousands of NTD)
			$ 2,079,436 134,876 11,127

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USD : NTD	USD 11,803	30.71	362,470
JPY : NTD	JPY 283,739	0.232	65,941

December 31,2021 (Foreign currency: functional currency) Foreign currency (in thousands) Exchange rate Carrying amount (in thousands of NTD) Financial assets Monetary items USD : NTD USD 45,460 27.680 $ 1,258,333 RMB : NTD CNY 146,650 4.344 637,048 JPY : NTD JPY 92,077 0.241 22,191 Financial liabilities Monetary items USD : NTD USD 11,916 27.680 329,835 RMB : NTD CNY 28,431 4.344 123,504 JPY : NTD JPY 214,789 0.241 51,764	December 31,2021	December 31,2021	December 31,2021
		Exchange rate 27.680 4.344 0.241 27.680 4.344 0.241	Carrying amount (in thousands of NTD)
			$ 1,258,333 637,048 22,191 329,835 123,504 51,764

• B. Total exchange gain, including realized and unrealized gains from significant foreign exchange variations on monetary items held by the Group amounted to a gain of $76,984 and a gain of $1,057 for the years ended December 31, 2022 and 2021, respectively.

• C. The analysis of foreign currency risk due to significant exchange rate fluctuation is as follows:

(Foreign currency: functional currency) Financial assets Monetary items USD : NTD RMB : NTD JPY : NTD Financial liabilities Monetary items USD : NTD RMB : NTD JPY : NTD		2022 SensitivityAnalysis	2022 SensitivityAnalysis
	Fluctuation 1% 1% 1% 1% 1% 1%	Effect on profit or loss $ 20,794 1,349 111 ( 3,625) - ( 881)	Other comprehensive profit and loss affected
			$ - - - - - -

2021 Sensitivity Analysis

(Foreign currency:

Fluctuation Effect on profit Other comprehensive

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functional currency) Financial assets Monetary items USD : NTD RMB : NTD JPY : NTD Financial liabilities Monetary items USD : NTD RMB : NTD JPY : NTD	1% 1% 1% 1% 1% 1%	or loss $ 12,583 6,370 222 ( 3,298) ( 1,235) ( 518)	profit and loss affected
			$ - - - - - -

Price risk

• A. The equity instruments owned by the Company exposing to the price risk are financial assets at fair value through profit or loss and financial assets at fair value through other comprehensive income.

• B. The Group invests primarily in equity instruments and open-end funds issued by domestic and foreign companies. The price of such equity instrument is subject to the uncertainty of the future value of investment target. If the price of such equity instrument increases or decreases by 1%, while all other factors remain unchanged, the net profit after tax affected by equity instruments at fair value through profit or loss after tax for 2022 and 2021 is an increase or decrease of $44,812 and $50,377, respectively; as for the other comprehensive income classified as equity instruments at fair value through other comprehensive income, it is $0 for both 2022 and 2021.

Cash flow and fair value interest rate risk

• A. The Group's interest rate risk mainly comes from long-term borrowings issued at floating rates, which exposes the Group to cash flow interest rate risk. For 2022 and 2021, the Group's borrowings issued at floating rates were mainly denominated in New Taiwan dollars and US dollars.

• B. The Group's borrowings are measured at amortized cost, and the annual interest rate is re-priced according to the contract, which exposes the Group to the risk of future market interest rate changes.

• C. If the long- and short-term borrowing rates increase or decrease by 0.25%, while all other factors remain constant, the net profit after tax for 2022 and 2021 is a decrease or increase of $16,808 and $14,198, respectively, mainly due to the interest expense changes caused by the floating interest rate.

(2) Credit risk

• A. Credit risk refers to the risk of financial loss to the Group arising from default by the clients or counterparties of financial instruments under contract obligations, and the defaults are accounts receivable and the contract cash flow from debt instruments measured at amortized cost, measured at fair value through other comprehensive income and measured at fair value through profit or loss.

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• B. The management of credit risk is established with a Group perspective. Only the banks and financial institutions with an independent credit rating of at least “A” can be accepted as transaction partners of the Group. According to the Group’s credit policy, each local entity in the Group 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, taking into account 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.

• C. The Group considers a contract payment overdue in accordance with the agreed payment terms a breach of contract.

• D. The Group uses IFRS 9 to provide the following assumption as a basis for determining whether there is a significant increase in the credit risk of financial instruments after the original recognition:

• (A) If the contract payment is overdue for more than 30 days in accordance with the agreed payment terms, the credit risk of the financial asset is significantly increased since the original recognition.

• (B) For bond investments in Taipei Exchange, if any external rating agency rates it as an investment grade on the balance sheet date, the credit risk of the financial asset is considered low.

• E. The Group uses the following indicators to determine the status of credit impairments of debt instruments:

• (A) The issuer has suffered significant financial difficulties or is likely to enter bankruptcy or other financial restructuring.

• (B) The issuer has suffered significant financial difficulties or is likely to enter bankruptcy or other financial restructuring.

• (C) The issuer delays or does not pay for the interest or principal.

• (D) Unfavorable changes in the national- or regional-level economic situation resulting in the issuer's default.

• F. The Group categorizes the accounts receivable from customers based on the characteristics of trade credit risks. The simplified approach is adopted for estimating the expected credit loss based on the provision matrix.

• G. The Group may write off the amount of financial assets that cannot be reasonably expected to be recovered after recourse. However, the Group will continue the recourse to protect the rights of the claims.

• H. The Group has incorporated forward-looking considerations to adjust the loss rate built according to historic and current data in order to estimate the loss allowance of accounts receivables. The provision matrix for the years ended December 31, 2022 and 2021 are shown as follows:

More than 181 Not past due Up to 30 days 31-90 days 91-180 days days past due Total December 31, 2022 Expected loss rate 0.01~1% 0.05~1.95% 1.85%~5.53% 5.23~17.66% 56.58~100% Total book value $ 1,188,466 $ 224,106 $ 85,210 $ 14,582 $ 11,591 $ 1,523,955 -75-

Loss allowance December 31, 2021 Expected loss rate Total book value Loss allowance	- 未逾期	( 619) 30天內	( 2,267) 31-90天	( 7,392) 91-180天	( 10,319) 181天以上 57.18~100% $ 9,505 ( 8,042)	( 20,597) 合計
	0.01~1% $ 1,060,909 -	0.01~1.95% $ 188,933 ( 2)	1.99~6.29% $ 29,361 ( 1,397)	5.05~19.97% $ 1,891 ( 598)		$ 1,290,599 ( 10,039)

• I. The Group adopts a simplified method in which the loss allowance for the accounts receivable is shown as follows:

January 1 Recognize impairment loss December 31 January 1 Reversal of impairment loss Impact from exchange rate December 31	2022 Accounts Receivables $ 10,039 10,558 $ 20,597 2021 Accounts Receivables $ 11,399 ( 1,340) ( 20) $ 10,039

(3) Liquidity risk

• A. Cash flow forecasting is performed by the operating entities of the Corporate Group and aggregated by the Group’s treasury department. It monitors rolling forecasts of liquidity requirements to ensure the Group has sufficient cash to meet operational needs.

• B. The remaining cash held by each operating entity will be transferred back to the Group's finance department. The finance department of the Group invests the remaining funds in interest-bearing demand deposits, time deposits, financial assets at fair value through profit or loss, financial assets at amortized cost and bond investment without an active market (time deposits with a maturity of more than 3 months and less than 12 months), as the instruments chosen have appropriate maturities or sufficient liquidity to provide sufficient headroom as determined by the abovementioned forecasts. For the years ended December 31, 2022 and 2021, the position of money market held by the Corporate Group is at $2,417,912 and $2,760,287, respectively, and is expected to generate immediate cash flow to manage liquidity risk.

• C. The Group's unutilized borrowings are shown as follows:

Floating rate Mature within one year Maturity of more than 1 year	December 31,2022 $ 645,878 60,014	December31,2021 $ 953,880 20,000

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Fixed rate

ed rate
Maturity of more than 1 year	11,045 $ 716,937	-
		$ 973,880

• D. The following table shows the Group’s non-derivative financial liabilities and derivative financial liabilities settled on a net or total amount, grouped according to the relevant maturity date. Non-derivative financial liabilities are analyzed based on the remaining period from the balance sheet date to the contract maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows.

Non-derivative financial liabilities:

December 31, 2022 Non-derivative financial liabilities: Short Term Loans Notes Payable Accounts payable (Including related parties) Other payables (Including related parties) Lease liabilities Corporate bonds payable Long-term borrowings (including current portion) Guarantee Deposits Received December 31, 2021 Non-derivative financial liabilities: Short Term Loans Notes Payable Accounts Payable Other payables (Including related parties) Lease liabilities Corporate bonds payable Long-term borrowings (including current portion) Guarantee Deposits Received	Within 1year $ 4,702,123 81 417,459 837,213 38,246 - 680,126 - Within 1year $ 4,404,500 66 477,232 742,008 46,784 - 71,855 -	1 to 2years $ - - - - 78,734 - 919,483 34,754 1 to 2years $ - - - - 47,424 - 792,803 6,908	2 to5 years $ - - - - 224,177 2,696,140 352,448 - 2 to 5years $ - - - - 644,497 1,741,300 1,861,513 -	Over5 years
				$ - - - - 221,011 - 217,645 - Over 5years
				$ - - - - - - - -

(III) Fair value information

1. 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:

2. Level 1: Quoted prices (unadjusted) in active markets for identical assets or

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liabilities that the entity can access at the measurement date. A market is regarded as active where a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. The fair value of the Group’s investment in stocks of publicly traded or OTC firms and beneficiary certificates is included in Level 1.

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

• Level 3: Unobservable inputs for the asset or liability. The fair value of the Group’s investment in stocks of non-publicly traded or non-OTC firms and private equity fund is included in Level 3.

• Financial instruments not measured at fair value

• Cash, notes receivable, accounts receivable, other receivable, short-term borrowings, notes payable, accounts payable and other payable as reasonable approximation of fair value.

• The related information for financial and non-financial instruments measured at fair value by level on the basis of the nature, characteristics and risks of the assets and liabilities is as follows:

December 31, 2022 Assets Recurring fair value measurements Financial assets at fair value through profit and loss Equity securities Beneficiary certificates Liabilities Recurring fair value measurements Financial liabilities at fair value through profit or loss Convertible bond call/put options December 31, 2021 Assets Recurring fair value measurements Financial assets at fair value through profit and loss Equity securities Beneficiary certificates Convertible bonds	Level 1 $ 4,344,484 500 $ 4,344,984 $ - Level 1 $ 4,877,148 500 -	Level 2 $ 79,300 - $ 79,300 $ - Level 2 $ 102,400 - -	Level3 $ 56,871 - $ 56,871 $5,697 Level3 $ 52,622 - 5,000	Total
				$ 4,480,655 500
				$ 4,481,155
				$ 5,697
				Total
				$ 5,032,170 500 5,000

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$ 4,877,648 $ 102,400 $ 57,622 $ 5,037,670

1. The methods and assumptions adopted by the Group for assessing the fair value are as follows:

2. (1) The Group adopt market pricing as the input of fair value (i.e. Level 1), and the breakdown of the characteristics of the instrument is as follows:

Market price	Shares of listed andOTCcompany Closing price	Open-end funds
		Net Value

• (2) Except for the abovementioned financial instruments with active markets, the fair value of the remaining financial instruments is obtained using valuation techniques. The fair value obtained through valuation techniques can refer to the current fair value of other financial instruments with similar substantive conditions and characteristics, discounted cash flow method, or other valuation techniques, including the use of market information available on the date of the consolidated balance sheet (for example, the Taipei Exchange refers to the yield curve, the Reuters adopts the average quotation of interest rate of commercial promissory notes).

• (3) The output of the valuation model is the estimated value, and the valuation technique may not reflect all the relevant factors of the financial instruments and non-financial instruments held by the Group. Therefore, the estimated value of the valuation model will be appropriately adjusted according to additional parameters, such as model risk or liquidity risk. According to the Group's fair value valuation model management policies and related control procedures, the management believes that in order to properly express the fair value of financial instruments and non-financial instruments in the consolidated balance sheet, valuation adjustments are appropriate and necessary. The price information and parameters used in the valuation process are carefully assessed and appropriately adjusted according to current market conditions.

• (4) The Group incorporates credit risk valuation adjustments into the consideration of fair value of financial instruments and non-financial instruments to reflect counterparty credit risk and the credit quality of the Group, respectively.

• There were no transfers between Level 1 and 2 in 2022 and 2021.

• The following table shows the changes in Level 3 in 2022 and 2021:

January 1, 2022 Acquisition cost of the period Disposal this period Recognized in profit or loss of the period Impact from exchange rate December 31, 2022 January 1, 2021	Equitysecurities
	$ 57,622 12,500 ( 7,132) ( 12,123) 307
	$ 51,174
	Equitysecurities
	$ 31,708

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Acquisition cost of the period Recognized in profit or loss of the period December 31, 2021	32,651 ( 6,737)
	$ 57,622

1. The quantitative information about the significant unobservable input value of the valuation model and the sensitivity analysis of the significant unobservable input value change used in the Level 3 fair value measurements are explained as follows:

December 31, 2022 Non-derivative equity instruments: Shares of non- listed and non- OTC company December 31, 2021 Non-derivative equity instruments: Shares of non- listed and non- OTC company	Fair value $ 51,174 Fair value $ 52,622	Valuation technique Net asset value method Valuation technique Net asset value method	Significant unobservable inputs Net asset value Significant unobservable inputs Net asset value	Range (weighted average) - Range (weighted average) -	Relationship between inputs and fair value
					The higher the net asset value, the higher the fair value Relationship between inputs and fair value
					The higher the net asset value, the higher the fair value

1. The Corporate Group has carefully assessed the valuation models and parameters used to measure fair value. However, use of different valuation models or parameters may result in different measurement. For financial assets or liabilities classified in Level 3, changes in valuation parameters have the following impacts on the income or other comprehensive income of the period:

income of the period:
Inputs Changes Financial assets Equity instruments Net asset value± 1% Inputs Changes Financial assets Equity instruments Net asset value± 1%	December 31,2022
	Recognized in profit or loss Favorable changes Adverse changes $ 512 ($ 512)		Recognized in other comprehensive income
	Favorable changes $ 512		Favorable changes $ -	Adverse changes
				$ -
		December31,2021
	Recognized in profit or loss Favorable changes Adverse changes $ 526 ($ 526)		Recognized in other comprehensive income
	Favorable changes $ 526		Favorable changes $ -	Adverse changes
				$ -

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(IV) Others

The Company has evaluated the Group's operations and financial information, and amid the novel coronavirus crisis, the Group's ability to continue as a going concern, asset impairment and financing risks have not been greatly affected.

XIII. Supplementary Disclosure

• (I) Significant transactions information

• Loans to others: Please refer to Table 1.

• Provision of endorsements and guarantees to others: Please refer to Table 2.

• Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures): Please refer to Table 3.

• Acquisition or sale of the same security with the accumulated cost exceeding $300 million or 20% of the Company's paid-in capital: Please refer to Table 4.

• Acquisition of real estate exceeding $300 million or 20% of paid-in capital or more: None.

• Disposal of real estate exceeding $300 million or 20% of paid-in capital or more: None.

• Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more: None.

• Receivables from related parties reaching NT$100 million or 20% of paid-in capital or more: None.

• Engaged in derivative trading: None.

• Significant inter-company transactions during the reporting periods: Please refer to Table 5.

(II) Information on investees

Names, locations and other information of investee companies (not including investees in China): Please refer to Table 6.

(III) Information on investments in China

1. Basic information: Please refer to Table 7.

2. Significant transactions, either directly or indirectly through a third area, with investee companies in China: None.

(IV) Information on Major Shareholders

Information on major shareholders: Detailed in Table 8.

XIV. Segments information

(I) General information

Management has determined the reportable operating segments based on reports reviewed by the president and used to make strategic decisions.

The Group's corporate structure, the basis for division of segments, and the basis for measurement of segment information have not changed significantly during the current

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period.

(II) Measurement of segment information

The Group evaluates the performance of the operating segments and allocates resources based on the adjusted net profit of each segment.

(III) Segments information

Information on the reporting segments provided to the chief operating decision maker is shown as follows:

2022:

shown as follows: 2022:
Revenue from external clients Segment revenue Segment margin Segment margin include: Depreciation Amortization expense Financial Costs Interest income Investments income recognized by using equity method Segment assets	Photomask and semiconductor segment $ 7,684,054 ($ 178,008) $ 810,187 ($ 560,487) ($ 44,778) ($ 172,615) $ 25,222 ($ 61,296) $ 17,396,692	Medical segment $ 57,064 $ - ($ 136,474) ($ 7,706) ($ 613) ($ 4,931) $ 49 $ - $ 496,214	Total
			$ 7,741,118
			($ 178,008)
			$ 673,713
			($ 568,193)
			($ 45,391)
			($ 177,546)
			$ 25,271
			($ 61,296)
			$ 17,892,906

2021:

2021:
Revenue from external clients Segment revenue Segment margin Segment margin include: Depreciation Amortization expense Financial Costs Interest income Investments income recognized by using equity method Segment assets	Photomask and semiconductor segment $ 6,068,709 ($ 155,571) $ 1,255,406 $ 434,569 $ 18,102 ($ 99,775) $ 4,837 ($ 80,385) $ 15,791,812	Medical segment $ 8,653 $ - ($ 116,475) $ 48,705 $ 134 ($ 749) $ 21 $ - $ 362,583	Total
			$ 6,077,362
			($ 155,571)
			$ 1,138,931
			$ 483,274
			$ 18,236
			($ 100,524)
			$ 4,858
			($ 80,385)
			$ 16,154,395

(IV) Reconciliation for segment income

Sales between segments are conducted according to the principle of transactions at fair value. The operating revenue from external customers reported to the operating decision maker is

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measured in a manner consistent with that in the income statement.

The consolidated income, assets and liabilities of related segments are consistent with the consolidated income, consolidated assets and consolidated liabilities, so there is no reconciliation information.

(V) Information on products and services

The revenue from external customers mainly come from the sales of photomasks and semiconductors and product and labor revenue of medical equipment, as shown in Note 6 (22).

(VI) Geographical information

Information by region for the Group in 2022 and 2021:

Taiwan Asia Others Total	2022 Revenue Non-Current Assets $ 2,929,266 $ 8,396,368 4,753,060 1,810 58,792 - $ 7,741,118 $ 8,398,178	2021	2021
		Revenue $ 2,986,379 3,084,232 6,751 $ 6,077,362	Non-Current Assets
			$ 6,083,155 1,430 -
			$ 6,084,585

(VII) Major customer information

Information by major customer for the Group in 2022 and 2021:

Company B	2022 Revenue Department $ 936,993 Photomask and semiconductor segment	2021	2021
	Revenue $ 936,993	Revenue $ 942,399	Department
			Photomask and semiconductor segment

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Unit: NT$Thousand

Table 1

Taiwan Mask Corporation and Subsidiaries

Loans to Others

January 1 to December 31, 2022

(Unless otherwise specified)

No. (Note 1)	Companythat lent	Borrowing party	General ledger account Relate	Maximum	Balance at the	Amount Actually	Range of	Nature of loan	Amount of	Reason for	Amount of	Colla	teral	Limit on loans	Ceilingon total	Note
												Name	Value
1 2 3 3 3 3	ADL Energy Corp Miracle Technology CO., LTD. Youe Chung Capital Corporation Youe Chung Capital Corporation Youe Chung Capital Corporation Youe Chung Capital Corporation	Aptos Technology INC. Aptos Technology INC. Aptos Technology INC. Xsense Technology Corp Xsense Technology Corporation Innova Vision INC.	Other Receivables－Related Parties Y Other Receivables－Related Parties Y Other Receivables－Related Parties Y Other Receivables－Related Parties Y Other Receivables－Related Parties Y Other Receivables－Related Parties Y	28,000 $ 170,000 650,000 470,000 8,000 90,000	7,200 $ 170,000 150,000 270,000 - 90,000	7,200 $ 170,000 150,000 270,000 - 90,000	2.7% 2.7% 2.7% 2.7% 2.0% 2.7%	Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing	- - - - - -	Business operations Working capital Working capital Working capital Working capital Working capital	- - - - - -	Promissory not Promissory not Promissory not Promissory not - Promissory not	e 7,200 $ e 170,000 e 150,000 e 270,000 - e 90,000	19,166 $ 178,503 1,698,869 1,698,869 1,698,869 1,698,869	19,166 $ 178,503 1,698,869 1,698,869 1,698,869 1,698,869	Note 3 Note 4 Note 6 Note 6 Note 6 Note 6

Note 1: The description of the number columns are as follows: (1). Fill in 0 for the issuer. (2). The investee company is numbered in sequence starting from Arabic numeral 1 according to company type. Note 2: Amendment to the Procedures for Lending Funds to Others: (1) Total amount of loans:The total amount of the Company's loans shall not exceed 40% of the Company's net value. (2) For companies or businesses that have business dealings with the Company, the loan amount of each individual borrowers shall not exceed the amount of transactions between the two parties in the most recent year and not exceed 40% of the Company net value. (3) For companies or businesses that have a short-term financing need, the loan amount of each individual borrowers shall not exceed the amount of transactions between the two parties in the most recent year and not exceed 40% of the Company net value. (4) Inter-company loans of funds between overseas companies in which the Company owns, directly or indirectly, 100% of the voting shares, are not restricted by the abovementioned paragraphs. However, the total amount of loans and the amount of loan to a single party shall not exceed 50% of the Co Note 3: Subsidiary - ADL Energy Corp Procedures for Lending Funds to Others: (1) The total loan amount shall not exceed 50% of the Company’s net value. However, for companies or businesses that have a short-term financing need, the loan amount of each individual borrowers shall not exceed 40% of the Company net value. (2) In addition to the provisions in (1), the loan amount of each individual borrower of companies or businesses that have business dealings with the Company shall not exceed the amount of transactions between the two parties. The amount of business transactions refers to the higher of the amount of go (3) In addition to the provisions in (1), in which companies or businesses have a short-term financing need, and the loan amount of each individual borrowers not exceeding 40% of the Company net value, the financing amount refers to the accumulated balance of the company's short-term financing. (4) Inter-company loans of funds between overseas companies in which the Company owns, directly or indirectly, 100% of the voting shares, or loans to the Company from any overseas companies in which the Company holds, directly or indirectly, 100% of the voting shares are not restricted by the abo The total amount of loans lent between the overseas companies or to the parent company and the limit for each limit are specified as follows: I. The total amount loans to enterprises shall not exceed 50% of the Company’s net value. However, for companies or businesses that have a short-term financing need, the loan amount of each individual borrower shall not exceed 40% of the Company net value. II. For overseas companies that have business dealings with each other, the individual loan amount shall not exceed the amount of transactions between the two parties. The amount of business transactions refers to the higher of the amount of goods purchased or sold between the parties. III. If there is a need for short-term financing, the loan amount of each individual borrowers shall not exceed 40% of the company's net value, and the financing amount refers to the accumulated balance of the short-term financing between overseas companies. (5) The highest balance for the current period is the amount resolved by the board. Note 4: Subsidiary - Miracle Technology Procedures for Lending Funds to Others (1) Total amount of loans:The total amount of the Company's loans shall not exceed 40% of the Company's net value. (2) For companies or businesses that have business dealings with the Company, the loan amount of each individual borrowers shall not exceed the amount of transactions between the two parties in the most recent year and not exceed 40% of the Company net value. (3) For companies or businesses that have a short-term financing need, the loan amount of each individual borrowers shall not exceed the amount of transactions between the two parties in the most recent year and not exceed 40% of the Company net value. (4) Inter-company loans of funds between overseas companies in which the Company owns, directly or indirectly, 100% of the voting shares, are not restricted by the abovementioned paragraphs. However, the total amount of loans and the amount of loan to a single party shall not exceed 50% of the Co Note 5: Subsidiary - Innova Vision Procedures for Lending Funds to Others (1) Total amount of loans:The total amount of the Company's loans shall not exceed 40% of the Company's net value. (2) The loan amount of each individual borrower of companies or businesses that have business dealings with the Company shall not exceed the amount of transactions between the two parties in the past year. The amount of business transactions refers to the higher of the amount of goods purchased or s (3) For companies or businesses that have a short-term financing need, the loan amount of each individual borrowers shall not exceed the amount of transactions between the two parties in the most recent year and not exceed 40% of the Company net value. Note 6: Subsidiary - Youe Chung Capital Corporation Procedures for Lending Funds to Others

(1) Total amount of loans:The total amount of the Company's loans shall not exceed 40% of the Company's net value.

(2) For companies or businesses that have a short-term financing need, the loan amount of each individual borrowers shall not exceed the amount of transactions between the two parties in the most recent year and not exceed 40% of the Company net value.

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Taiwan Mask Corporation and Subsidiaries

Endorsements and Guarantees to Others

January 1 to December 31, 2022

Table 2

Unit: NT$Thousand (Unless otherwise specified)

No. (Note 1) Endorser/guarantor	ip ent and guarantee for a single enterprise Name of Company (Note 2) (Note 3,4,5,6) Maximum Balance EndingBalance Amount Miracle Technology CO., LTD. 2 229,550 $ 225,505 $ 214,970 $ - $ Aptos Technology INC. 3 14,374 19,500 19,500 19,500 Miracle Technology CO., LTD. 3 344,788 224,808 224,808 224,808 Xsense Technology Corporation (B.V.I.) 1 178,503 150,000 150,000 150,000 Aptos Technology INC. 1 178,503 150,000 - - Guaranteed Party	Amount of	Maximum End Ratio of	orsement/ Guarantee Am (Note 3,4,5,6)	ount Allowable Guarantee	Guarantee	Guarantee Note
0 Taiwan Mask Corporation 1 ADL Energy Corp 2 Miko-China Enterprise (Shanghai) Co., Ltd. 3 Miracle Technology CO., LTD. 3 Miracle Technology CO., LTD.		- $ 19,500 224,808 150,000 -	4.73% 40.70% 65.20% 33.61% -	1,818,768 $ 19,166 344,788 178,503 178,503	Y N N N N	N Y Y N N	N Note 3 N Note 4 N Note 5 N Note 6 N Note 6

Note 1: The description of the number columns are as follows: (1). Fill in 0 for the issuer. (2). The investee company is numbered in sequence starting from Arabic numeral 1 according to company type. Note 2: The relationship between the guarantor and the guarantee are one of the seven types indicated below: (1) A company with which it does business. (2)A company in which the Company directly and indirectly holds more than 50% of the voting shares. (3) A company that directly and indirectly holds more than 50% of the voting shares in the Company. (4) Companies in which the Company holds, directly or indirectly, 90%, or more of the voting shares may make endorsements/guarantees for each other. (5) A company that is mutually insured by a contract between peers or co-founders based on the needs of the contracted work. (6). A company that is guaranteed by all contributing shareholders in proportion to their shareholdings due to a joint investment relationship. (7). Companies that are engaged in joint and several guarantees for the performance guarantee of pre-sale housing sales contracts in accordance with the regulations of the Consumer Protection Act. Note 3: The Company's endorsement and guarantee practices for others provide that: (1). The total amount of the Company's external endorsement guarantee shall not exceed 30% of the Company's paid-in capital. (2). The amount of business transactions refers to the higher of the amount of goods purchased or sold between the parties. (3). Companies with which the Company has a parent-child relationship: The amount of endorsement and guarantee for a single enterprise shall not exceed 10% of the Company's paid-in capital and the paid-in capital of the company being endorsed and guarant (4). The aggregate amount of the endorsement and guarantee of the Company and its subsidiaries as a whole shall not exceed 40% of the net worth of the Company, of which the endorsement and guarantee of a single subsidiary shall not exceed 20% of the net w Note 4: Subsidiary - ADL Energy Corp Endorsement and Guarantee Procedures: (1). The aggregate amount of cumulative external endorsement guarantees shall not exceed 40% of the net value of the Company's most recent audited or reviewed financial statements. 2). The amount of the endorsement guarantee for a single enterprise shall not exceed 30% of the net value of the company's most recent audited or reviewed financial statements. (3). The Company and its subsidiaries shall state in the shareholders' meeting the necessity and reasonableness of any endorsement or guarantee of more than 50% of the net value of the Company's most recent audited or reviewed financial statements. Note 5: Miko-China Enterprise (Shanghai) Co., Ltd. Endorsement and Guarantee Procedures: The total amount of endorsement guarantee liability is limited to RMB 30 million, and the amount of endorsement guarantee for a single enterprise shall not exceed RMB 30 million; however, for the parent company that directly or indirectly holds, through a su Note 6: Subsidiary - Miracle Technology Co., Ltd. Endorsement and Guarantee Procedures:

The aggregate amount of cumulative external endorsement guarantees shall not exceed 40% of the net value of the Company's most recent audited or reviewed financial statements.

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Taiwan Mask Corporation and Subsidiaries

Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures) December 31, 2022

Table 3

Unit: NT$Thousand (Unless otherwise specified)

Company name of the shareholding	Marketable securities	Relationship	General ledger account		Perio	d end	Fair value Note
				Number of shares	Book value	Ownership
Taiwan Mask Corporation Common stocks of United Microelectronics Corporation Taiwan Mask Corporation Common stock of China Steel Structure Co., Ltd. Taiwan Mask Corporation Common stocks of Avision Inc. through private placement. Youe Chung Capital Corporation Common stocks of United Microelectronics Corporation Youe Chung Capital Corporation Common stocks of Microtek International Youe Chung Capital Corporation Common stocks of Taiwan Mask Youe Chung Capital Corporation Common stock of China Steel Structure Co., Ltd. Youe Chung Capital CoCommon stocks of EVERBRITE Technology Youe Chung Capital Corporation Image Match Design Inc. Youe Chung Capital Corporation B Current Impact Investment Youe Chung Capital Corporation B Current Impact Investment Partnership Youe Chung Capital Corporation Intellectual Property Innovation Corporation Partnership Fund Jing Hao Investment Co., Ltd. G-TECH ELECTRONICS LTD. Jing Hao Investment Co., Ltd. Memchip Technology Co., Ltd. Aptos Technology INC Common stocks of TOPFUN TECHNOLOGY INC ADL Energy Corp Franklin Templeton SinoAm Asia Pacific Balanced Fund-Accu. Beneficiary Certificate Miko-China Enterprise (Shanghai) Common stocks of Shenzhen He Mei Jing Yi Semiconductor Technology Co., Ltd.		None None None None None Parent company None None The Company is a director of that company The Company is a director of that company None None None None None None None	Financial Assets at Fair Value Through Profit or Loss - Current Financial Asset at Fair Value Through Profit or Loss - Non Current Financial Asset at Fair Value Through Profit or Loss - Non Current Financial Assets at Fair Value Through Profit or Loss - Current Financial Assets at Fair Value Through Profit or Loss - Current Financial Asset at Fair Value Through Profit or Loss - Non Current Financial Asset at Fair Value Through Profit or Loss - Non Current Financial Asset at Fair Value Through Profit or Loss - Non Cur Financial Asset at Fair Value Through Profit or Loss - Non Current Financial Asset at Fair Value Through Profit or Loss - Non Current Financial Asset at Fair Value Through Profit or Loss - Non Current Financial Asset at Fair Value Through Profit or Loss - Non Current Financial Asset at Fair Value Through Profit or Loss - Non Current Financial Asset at Fair Value Through Profit or Loss - Non Current Financial assets measured at fair value through other comprehensi e income Non C rrent Financial Assets at Fair Value Through Profit or Loss - Current Financial Asset at Fair Value Through Profit or Loss - Non Current	7,554,000 14,334,000 10,000,000 6,000,000 40,409,000 36,731,440 24,999,000 r 10,831,000 1,890,000 1,000,000 250,000 - 1,097,092 187,915 100,000 50,000 400,000	307,448 $ 845,706 79,300 244,200 1,032,450 3,111,153 1,474,941 439,739 3,213 10,000 2,500 20,000 - - - 500 21,158	0.06% 7.17% 5.18% 0.05% 19.65% 14.37% 12.50% 16.92% 3.17% 10.00% - - 8.08% 3.13% 12.27% - 0.31%	307,448 $ 845,706 79,300 244,200 1,032,450 3,111,153 1,474,941 439,739 3,213 10,000 2,500 20,000 - - - 500 21,158

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Taiwan Mask Corporation and Subsidiaries

Acquisition or sale of the same security with the accumulated cost exceeding $300 million or 20% of the Company's paid-in capital

January 1 to December 31, 2022

Table 4

Unit: NT$Thousand

(Unless otherwise specified)

Companythat buys	Marketable securities	CounterpartyRelationshi General ledger account (Note 2) (Note 2) Financial Assets at Fair Value Through Profit or - - Financial Assets at Fair Value Through Profit or - - Financial Assets at Fair Value Through Profit or - - Financial Assets at Fair Value Through Profit or Financial Assets at Fair Value Through Profit or - -	CounterpartyRelationshi General ledger account (Note 2) (Note 2) Financial Assets at Fair Value Through Profit or - - Financial Assets at Fair Value Through Profit or - - Financial Assets at Fair Value Through Profit or - - Financial Assets at Fair Value Through Profit or Financial Assets at Fair Value Through Profit or - -	p Beginning	ofperiod	Buy (Note 3)	Buy (Note 3)	Number of shares	SellingPrice Sell/Reduce	Book Cost Gains and $ - $ - ( 69,019) 11,376 ( 832,785) ( 14,843) ( 721,815) 278,371 - - (Note 3)	End ofperiod	End ofperiod
				Number of	Amount	Number of shares	Amount				Number of shares	Amount
Taiwan Mask Corporation Youe Chung Capital Corporation Youe Chung Capital Corporation Youe Chung Capital Corporation Youe Chung Capital Corporation	China Steel Structure Co., Ltd. Microtek International Acer United Microelectronics China Steel Structure Co., Ltd.		- - - -	6,980,000 - 33,460,000 28,200,000 15,923,000	$ 413,216 - 1,018,857 1,833,000 942,642	7,354,000 46,599,000 - 2,500,000 9,076,000	$ 432,193 705,222 - 157,227 540,483	- ( 6,190,000) ( 33,460,000) ( 24,700,000) -	$ - ( 80,395) ( 817,942) ( 1,000,186) -		14,334,000 40,409,000 - 6,000,000 24,999,000	$ 845,706 1,032,450 - 244,200 1,474,941

Note 1: Marketable securities in the table refer to stocks, bonds, beneficiary certificates and other related derivative securities of the abovementioned items.

Note 2: For marketable securities that adopt the equity method, the two fields should be filled out and the rest are not required. Note 3: Acquisition or sale of the same securities should be calculated separately at market price to see if they reach NT$300 million or 20% of the Company's paid-in capital.

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Taiwan Mask Corporation and Subsidiaries

Significant inter-company transactions during the reporting periods

January 1 to December 31, 2022

Table 5

Unit: NT$Thousand

(Unless otherwise specified)

Status of transaction

No. (Note 1)	Name of the counterparty	Counterparty	Relationship	General ledger account	Amount	Transaction terms	Percentage of consolidated total (Note 3)
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 2 3 4 4 4 4 4 5 6 6 7 7	Taiwan Mask Corporation Taiwan Mask Corporation Taiwan Mask Corporation Taiwan Mask Corporation Taiwan Mask Corporation Taiwan Mask Corporation Taiwan Mask Corporation Taiwan Mask Corporation Taiwan Mask Corporation Taiwan Mask Corporation Taiwan Mask Corporation Taiwan Mask Corporation Taiwan Mask Corporation Taiwan Mask Corporation Taiwan Mask Corporation Miracle Technology CO., LTD. Miracle Technology CO., LTD. Miracle Technology CO., LTD. Miracle Technology CO., LTD. Miracle Technology CO., LTD. Miracle Technology CO., LTD. Miracle Technology CO., LTD. Miko-China Enterprise (Shanghai) Co., Ltd. Sichuan Miracle Power Technology Co., Ltd. Youe Chung Capital Corporation Youe Chung Capital Corporation Youe Chung Capital Corporation Youe Chung Capital Corporation Youe Chung Capital Corporation Aptos Technology INC. ADL Energy Corp ADL Energy Corp Innova Vision INC. Innova Vision INC.	Miracle Technology CO., LTD. Miracle Technology CO., LTD. Miracle Technology CO., LTD. Miracle Technology CO., LTD. Miracle International Enterprise(Shanghai) Co., Ltd. Miracle International Enterprise(Shanghai) Co., Ltd. Aptos Technology INC. Aptos Technology INC. Innova Vision INC. Innova Vision INC. Xsense Technology Corporation (B.V.I.) Taiwan Branch Xsense Technology Corporation (B.V.I.) Taiwan Branch DIGITAL-CAN TECH. CO., LTD. DIGITAL-CAN TECH. CO., LTD. ADL Energy Corp Aptos Technology INC. Aptos Technology INC. Xsense Technology Corporation (B.V.I.) Taiwan Branch Miracle International Enterprise(Shanghai) Co., Ltd. Miracle International Enterprise(Shanghai) Co., Ltd. Aptos Technology INC. ADL Energy Corp Miracle Technology CO., LTD. Miracle Technology CO., LTD. Aptos Technology INC. Aptos Technology INC. Xsense Technology Corporation (B.V.I.) Taiwan Branch Xsense Technology Corporation (B.V.I.) Taiwan Branch Innova Vision INC. Miracle Technology CO., LTD. Aptos Technology INC. Aptos Technology INC. Innova Vision Kabushiki Kaisha Innova Vision Kabushiki Kaisha	1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3	Sales Endorsement and guarantee Accounts Receivables Rental income Sales Accounts Receivables Rental income Other Receivables Rental income Other Receivables Rental income Other Receivables Equipment acquisition Prepayments for equipment Equipment acquisition Other Receivables Interest income Endorsement and guarantee Sales Accounts Receivables Sales Sales Endorsement and guarantee Sales Other Receivables Interest income Other Receivables Interest income Other Receivables Sales Other Receivables Endorsement and guarantee Sales Other Receivables	14,828 214,970 5,221 2,811 17,172 3,978 53,332 8,118 18,766 7,064 48,735 1,902 23,087 71,804 9,797 170,000 3,319 150,000 51,234 1,156 3,739 6,894 224,808 17,081 150,000 5,904 270,000 5,274 90,000 6,038 7,200 19,500 24,812 17,002	Net 60 Same with other customers ~~N~~et 60 Same with other customers Net 60 Net 60 Same with other customers Same with other customers Same with other customers Same with other customers Same with other customers Same with other customers Same with other customers Same with other customers Same with other customers Receipt and payment at an agreed time Receipt and payment at an agreed time Same with other customers Net 30 Net 30 Net 60 Net 60 Same with other customers Net 30 Receipt and payment at an agreed time Receipt and payment at an agreed time Receipt and payment at an agreed time Receipt and payment at an agreed time Receipt and payment at an agreed time Net 60 Receipt and payment at an agreed time Same with other customers Net 60 Receipt and payment at an agreed time	0.19% 1.20% 0.03% 0.04% 0.22% 0.02% 0.69% 0.05% 0.24% 0.04% 0.63% 0.01% 0.13% 0.40% 0.05% 0.95% 0.04% 0.84% 0.66% 0.01% 0.05% 0.09% 1.26% 0.22% 0.84% 0.08% 1.51% 0.07% 0.50% 0.08% 0.04% 0.11% 0.32% 0.10%

Note 1: The numbers filled in for the transaction company in respect of inter-company transactions are as follows:

• (1) Parent company is "0".

(2) The subsidiaries are numbered in order starting from "1".

Note 2: Relationship between transaction company and counterparty is classified into the following three categories; fill in the number of category each case belongs to (If transactions between parent company and subsidiaries or between subsidiaries refer t for transactions between two subsidiaries, if one of the subsidiaries has disclosed the transaction, then the other is not required to disclose the transaction):

• (1) Parent company to subsidiary.

• (2) Subsidiary to parent company.

(3) Subsidiary to subsidiaries.

Note 3: Regarding percentage of transaction amount to consolidated total operating revenues or total assets, it is computed based on period-end balance of transaction to consolidated total assets for balance sheet accounts and based on accumulated transact Note 4: Only transactions with an amount of more than NT$1 million will be disclosed, and transactions with related parties will not be disclosed separately.

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Taiwan Mask Corporation and Subsidiaries

Names, locations and other information of investee companies (not including investees in China)

January 1 to December 31, 2022

Table 6

Unit: NT$Thousand (Unless otherwise specified)

Name of Investor	Investee	Location	Main business activities	Initial invest	ment amount	Shares he	ld as of the en	d ofperiod	Netprofit(loss)of the	Investment	Note
				ance at the end ofpe n	d of thepreviousy	e Number of shares	Ownership	Book value
Taiwan Mask Corporation Taiwan Mask Corporation Taiwan Mask Corporation Taiwan Mask Corporation Taiwan Mask Corporation Taiwan Mask Corporation Youe Chung Capital Corporation Youe Chung Capital Corporation Youe Chung Capital Corporation Youe Chung Capital Corporation Youe Chung Capital Corporation Youe Chung Capital Corporation Aptos Technology INC. Aptos Technology INC. ADL Energy Corp Miracle Technology CO., LTD. Jing Hao Investment Co., Ltd. Innova Vision INC. Innova Vision INC. Innova Vision INC. Innova Vision (B.V.I) Inc.	SunnyLake Park International Holdings, Inc. Youe Chung Capital Corporation Advagene Biopharma Co., Ltd. Miracle Technology CO., LTD. Weida Hi-Tech Company Innova Vision INC. Advagene Biopharma Co., Ltd. Xsense Technology Corporation (B.V.I.) T i B h Xsense Technology Corporation (B.V.I.) T i B h Aptos Technology INC. Innova Vision INC. Digital-Can Tech. Co., Ltd. ADL Energy Corp New Sunrise Limited Aptos Global Holding Corp. Jing Hao Investment Co., Ltd. Miko Technology Co., Ltd Innova Technology Innova Vision (B.V.I) Inc. Innova Vision Kabushiki Kaisha Innova Vision Kabushiki Kaisha	British Virgin Islands Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan British Virgin I l d Taiwan Taiwan Taiwan Taiwan Taiwan Samoa Seychelles Taiwan Hong Kong Taiwan British Virgin I l d Japan Japan	Re-investment Re-investment Medical, R&D, manufacturing Electronics components manufacturing, electronics materials Display panel control chip and other module’s research, design, Manufacturing, retail, wholesale and international trade of medical Medical, R&D, manufacturing Precious metal coating Precious metal coating Design, packaging and testing of NAND flash memory, solid state drives Manufacturing, retail, wholesale and international trade of medical 3D Printing and Plastic Mold Design Electronic parts and components and h i l i Re-investment Re-investment Re-investment Electronics components manufacturing, electronics materials Sales of contact lens Re-investment Sales of contact lens Sales of contact lens	103,045 $ 1,260,000 165,691 211,332 293,371 578,321 60,021 325,965 - 434,692 151,533 139,072 413,050 - 29,795 10,012 37 64,650 60,157 84,204 56,420	103,045 $ 1,260,000 165,691 229,696 293,371 578,321 60,021 317,965 - 134,928 151,533 139,072 413,050 - 29,795 10,012 37 64,650 60,157 84,204 56,420	3,120,000 534,877,568 12,549,652 22,955,033 12,176,880 36,793,135 2,613,223 1 12,189,191 28,481,161 94,370 7,281,250 11,984,526 - 10,000,000 21,280,774 10,000 3,000,000 1,000,000 6,400 5,900	100% 100% 25.43% 100% 28.20% 91.53% 5.30% 100.00% 53.00% 47.19% 0.23% 57.39% 100% 100% 100% 100% 100% 100% 100% 52.03% 47.97%	5,746 $ 1,140,806 33,508 482,368 84,080 151,324 6,977 6,319 5,469) ( 89,485) ( 425 113,858 47,914 - - 285,851 6,740 3,338) ( 14 169) ( 156) (	43 $ 1,379,376) ( 118,377) ( 63,131 20,213) ( 129,197) ( 118,377) ( 540) ( 160,094) ( 295,477) ( 129,197) ( 20,631) ( 19,975) ( - - 50,890 50) ( 104) ( 573) ( 1,181) ( 1,181) (	43 $ 559,391) ( 30,116) ( 63,131 24,909) ( 125,646) ( 6,271) ( 37,227) ( 18,228) ( 130,031) ( 303) ( 19,641) ( 19,975) ( - - 50,890 50) ( 104) ( 573) ( 614) ( 567) (	Note 1 Note 1 Note 2

Note 1: Xsense Technology Corporation underwent a physical capital reduction in November 2022, leaving only 1 share held by Youe Chung Capital Corporation; at the same time, Xsense Technology Corporation applied to have the shares of Xsense Technology Corporation (B.V.I.) Taiwan Branch it hel

Note 2: As of December 31, 2022, the funds for shares have not been remitted.

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Taiwan Mask Corporation and Subsidiaries

Information on investments in China January 1 to December 31, 2022

Table 7

Unit: NT$Thousand (Unless otherwise specified)

Investee in China	Main business activities	Paid-upcapital	Investment method (Note 1)	Accumulated	Amount re	mitted from	Accumulated amount of	Netprofit(loss)	Ownershipheld bythe	income (loss) (Note 2)	Carrying	Accumulated	Note
					Remitted to	Remitted back
Miko-China Enterprise (Shanghai) Co., Ltd. Miracle International Enterprise(Shanghai) Co., Ltd. Sichuan Miracle Power Technology Co.,	Electronics components manufacturing, electronics materials and precision equipment distribution and power component design Electronics components manufacturing, electronics materials and precision equipment distribution and power component design IC product design,	3,283 $ 10,215 53,676	1 1 3	3,283 $ 10,215 -	- $ - -	- $ - -	3,283 $ 10,215 -	60,510 $ 3,393 3,454) (	100% 100% 100%	60,510 $ 3,393 3,454) (	344,788 $ 93,635 58,754	- $ - -	Note 2 (2) B Note 2 (2) B Note 4 Note 2 (2)

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Note 1: Investment methods are classified into the following three categories; fill in the number of categories each case belongs to:

• (1). Directly invest in a company in China.

(2) Through investing in an existing company in the third area (please specify the company), which then invested in China.

• (3). Others

Note 2: Investment income recognized by the Company for the current period

• (1) If it is still under preparation with no actual gain or loss, it shall be indicated in the box.

• (2) The basis for recognition of the investment gains or losses is divided into the following three,

• A. Financial statements audited and validated by an international accounting firm that has a collaborative relationship with CPA firms in Taiwan.

• B. Financial statements audited and validated by a certified accountant or accounting firm who work with the parent company in Taiwan.

• C. Unaudited financial statements.

Note 3: The relevant figures in this table should be presented in New Taiwan Dollars.

Note 4: It was originally invested through Misun Technology Co., Ltd. Since the aforementioned company has gone through dissolution and liquidation, it has been changed to Miracle Technology Co., Ltd. directly investing in Miracle International Enterprise (Shanghai) Co., Ltd.

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Taiwan Mask Corporation and Subsidiaries Information on Major Shareholders December 31, 2022

Table 8

Name of Main Shareholders Youe Chung Capital Corporation Taiwan Mask Corporation	No. of shares held Ownership 36,731,440 14.32% 14,485,000 5.64% Shares

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