Skip to main content

AI assistant

Sign in to chat with this filing

The assistant answers questions, extracts KPIs, and summarises risk factors directly from the filing text.

Sign up Log in

TMC Interim / Quarterly Report 2023

Nov 14, 2023

52014_rns_2023-11-14_a9cb4a6f-5596-4c85-a202-c8779da7360b.pdf

Interim / Quarterly Report

Open in viewer

Opens in your device viewer

Taiwan Mask Corporation and Subsidiaries Consolidated Financial Statements and Independent Auditor’s Review Report Q2 2023 and 2022 (Stock Code: 2338)

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

Telephone: (03)563-4370

~1~

Taiwan Mask Corporation and Subsidiaries

’ Q2 2023 and 2022 Consolidated Financial Statements and Independent Auditor s

Review Report

Table of Contents

Items
I. Cover
II. Table of Contents
III. Independent Auditors’ Review Report
IV. Consolidated Balance Sheet
V. Consolidated Statement of Comprehensive Income
VI. Consolidated Statement of Changes in Equity
VII. Consolidated Statement of Cash Flows
VIII. Notes to the Consolidated Financial Statements
(I) Company History
(II) Date and procedures for passing the financial statement
(III) Application of New and Revised International Financial Reporting
Standards
(IV) Summary of Significant Accounting Policies
(V) Critical Accounting Judgments and Key Sources of Estimation and
Uncertainty
(VI) Summary of Significant Accounting Items		 Page
1
2 ~ 3
4 ~ 6
7 ~ 8
9
10
11 ~ 12
13 ~ 81
13
13
13 ~ 14
15 ~ 20
20
21 ~ 60

~2~

Items
(VII) Related Party Transactions
(VIII) Pledged Assets
(IX) Significant Contingent Liabilities and Unrecognized Contract
Commitments
(X) Losses due to Major Disasters
(XI) Major Events after Financial Statement Date
(XII) Others
(XIII) Supplementary Disclosure
(XIV) Segments Information		 Page
60 ~ 62
63
64
65
65
65 ~ 79
80
80 ~ 81

~3~

Independent Auditor's Review Report

(112) Tsai-Sheng-Bao-Zi No. 23001010

To Taiwan Mask Corporation,

Introduction

We have audited the accompanying consolidated balance sheets for the periods starting January 1 and ending June 30, 2023 and 2022, the consolidated statements of comprehensive income for the periods starting April 1 and ending June 30, 2023 and 2022 and starting January 1 and ending June 30, 2023 and 2022 and the consolidated statements of changes in equity and cash flows for the period starting January 1 and ending June 30, 2023 and 2022, as well as the notes to the consolidated financial statements (including the summary of significant accounting policies), for Taiwan Mask Corporation and subsidiaries (collectively referred to as the Group). The Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with “Regulations Governing the Preparation of Financial Reports by Securities Issuers” and IAS No. 34, “Interim Financial Reporting” as endorsed by the Financial Supervisory Commission. Our responsibility is to express a conclusion on these consolidated financial statements based on our reviews.

Scope

Except as explained in the following paragraph, we conducted our reviews in accordance with Standards on Review Engagements No. 2410, "Review of Financial Statements" in the Republic of China. The procedures performed when reviewing the consolidated financial statements include inquiries (mainly inquiring personnel responsible for financial and accounting tasks), analytical procedures and other review procedures. The scope of review is obviously smaller than that of audit. Therefore, the accountant may not be able to detect all the significant matters that can be identified through audit, so it is impossible to express an audit opinion.

~4~

Basis for qualified opinion

As stated in Note 4 (3) of the consolidated financial statements, the financial statements of the same period of some insignificant subsidiaries included in the abovementioned consolidated financial statements have not been reviewed by the CPA and the total amount of their assets as of June 30, 2023 and 2022 was NT$2,706,511 thousand and NT$1,748,320 thousand, accounting for 13.09% and 10.03% of the total consolidated assets, respectively; the total amount of their liabilities was NT$1,806,911 thousand and NT$1,698,039 thousand, accounting for 11.26% and 11.95% of the total consolidated liabilities, respectively; the total amount of comprehensive income from April 1 to June 30, 2023 and 2022 was NT$ (174,686) thousand and NT$ (63,474) thousand and that from January 1 to June 30, 2023 and 2022 was NT$ (351,208) thousand and NT$ (201,724) thousand, accounting for (630.66%), 16.21%, (208.14%) and 29.22% the total consolidated comprehensive income, respectively. As stated in Notes 6 (6) to the Consolidated Financial Statements, the investment using the equity method is prepared based on the financial statements from each company for the same period not reviewed by an CPA. The balance of investments using the equity method as of June 30, 2023 and 2022 was NT$85,074 thousand and NT$151,152 thousand, accounting for 0.41% and 0.87% of the total consolidated assets, respectively; the share of losses of associates recognized using the equity method from April 1 to June 30, 2023 and 2022 was NT$ (26,528) thousand and NT$ (24,597) thousand and that from January 1 to June 30, 2023 and 2022 was NT$ (39,491) thousand and NT$ (34,726) thousand, accounting for (95.77%), 6.28%, (23.40%) and 5.03% of the consolidated comprehensive income, respectively.

~5~

Qualified opinion

According to our results of the review, except for the part described by the basis for qualified opinion that the financial statement of insignificant subsidiaries and the investments using the equity method may affect adjustments to the consolidated financial statements upon the CPA's review, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of the Group as of June 30, 2023 and 2022, the results of the consolidated financial operations from April 1 to June 30, 2023 and 2022 and that from January 1 to June 30, 2023 and 2022 and the consolidated cash flows from January 1 to June 30, 2023 and 2022 in conformity with the Regulations Governing the Preparation of Financial Statements by Securities Issuers and IAS 34: interim financial reporting endorsed and issued into effect by the Financial Supervisory Commission of the Executive Yuan.

PricewaterhouseCoopers Taiwan

Ya-Hui Cheng

Accountant

Chien-Yu Liu

Securities and Futures Bureau of Financial Supervisory Commission of the Executive Yuan Approval Document for Attestation: Jin-Guan-Zheng-LiuZi No. 0960072936

Financial Supervisory Commission of the Executive Yuan Approval Document for Attestation: Jin-Guan-Zheng-ShenZi No. 1090350620

August 4, 2023

~6~

Taiwan Mask Corporation and Subsidiaries Consolidated Balance Sheet June 30, 2023 and December 31 and June 30, 2022

Unit: NT$Thousand

Assets Notes June 30,2023
Amount
%
$ 1,987,268
10
1,562,695
8
295,522
1
98,956
-
96
-
1,142,110
6
989
-
121,106
1
102
-
589,806
3
511,853
2
41,620
-
6,352,123
31
2,952,388
14
462,945
2
85,074
-
8,275,684
40
561,613
3
172,195
1
740,082
4
22,456
-
1,057,254
5
14,329,691
69
$ 20,681,814
100		 December 31,2022
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		 (revised)
June 30,2022		 (revised)
June 30,2022
Amount

$ 1,987,268
1,562,695
295,522
98,956
96
1,142,110
989
121,106
102
589,806
511,853
41,620
6,352,123
2,952,388
462,945
85,074
8,275,684
561,613
172,195
740,082
22,456
1,057,254
14,329,691
$ 20,681,814		 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

$ 2,260,721
2,425,497
37,838
141,144
3,783
1,662,026
15,404
177,226
56,341
429,349
142,187
56,489
7,408,005
2,244,139
51,145
151,152
5,177,547
623,138
171,980
481,315
7,301
1,109,001
10,016,718
$ 17,424,723		 %
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 Assets 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		 6(1)
6(2) and 8
6(3) and 8
6(22)
6(4)
6(4)
6(4) and 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) and 8
6(12)		 13
14
-
1
-
10
-
1
-
3
1
-
43
13
-
1
30
3
1
3
-
6
57
100

(continued on next page) 

~7~

Taiwan Mask Corporation and Subsidiaries Consolidated Balance Sheet

June 30, 2023 and December 31 and June 30, 2022

Unit: NT$Thousand

Liabilities and Equities Notes June 30,2023 %
26
-
1
-
2
-
11
-
-
-
4
1
45
13
17
1
2
-
-
-
33
78
12
6
4
7
-
(
6)
23
(
1)
22
100		 December 31,2022
Amount
%
$ 4,624,525
26
5,697
-
232,778
1
81
-
417,175
2
284
-
837,213
5
178,854
1
-
-
32,571
-
611,473
4
39,114
-
6,979,765
39
2,609,044
14
3,167,974
18
121,124
1
527,098
3
16,512
-
34,754
-
2,428
-
6,478,934
36
13,458,699
75
2,564,465
14
1,251,681
8
769,952
4
1,729,293
10
10,508
-
(
1,778,979) (
10)
4,546,920
26
(
112,713) (
1)
4,434,207
25
$ 17,892,906
100		 (revised)
June 30,2022		 %
37
-
2
-
3
-
7
1
-
2
-
1
53
10
16
1
2
-
-
-
29
82
15
6
5
2
-
(
10)
18
-
18
100
Amount
$ 5,350,087
4,692
189,749
72
428,197
-
2,201,865
86,071
-
39,426
783,443
93,254
9,176,856
2,618,080
3,503,965
132,775
532,905
11,370
51,905
13,234
6,864,234
16,041,090
2,564,465
1,201,821
827,460
1,407,514
(
2,815 )
(
1,181,599)
4,816,846
(
176,122)
4,640,724
$ 20,681,814		 Amount
$ 4,624,525
5,697
232,778
81
417,175
284
837,213
178,854
-
32,571
611,473
39,114
6,979,765
2,609,044
3,167,974
121,124
527,098
16,512
34,754
2,428
6,478,934
13,458,699
2,564,465
1,251,681
769,952
1,729,293
10,508
(
1,778,979)
4,546,920
(
112,713)
4,434,207
$ 17,892,906		 Amount
$ 6,362,017
13,408
343,655
33,002
483,791
-
1,296,536
177,525
10,739
320,517
82,729
104,651
9,228,570
1,666,038
2,742,957
123,219
310,509
14,581
40,178
86,651
4,984,133
14,212,703
2,556,735
1,119,766
769,952
409,500
13,081
(
1,703,521)
3,165,513
46,507
3,212,020
$ 17,424,723
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
Income Tax Liabilities for the
Period
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 borrowings
2570
Deferred Income Tax Liabilities
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		 6(13)
6(2)
6(22)
7
6(14)
6(16)
6(15)
6(16)
6(18)
6(19)
6(20)
6(21)

6(18)


9
11

The accompanying notes are an integral part of the consolidated financial statements and should be read in conjunction.

Chairperson: Sean Chen

Managerial Officer: Lidon Chen

Accounting Officer: Eve Yang

~8~

Taiwan Mask Corporation and Subsidiaries Consolidated Comprehensive Income Statement January 1 to June 30, 2023, and 2022

項目
Notes		 April 1 to June 30, 2023
Amount
%
$ 1,799,891
100
(
1,327,711) (
74)
472,180
26
(
70,198) (
4)
(
129,929) (
7)
(
97,207) (
5)
(
11,091) (
1)
(
308,425) (
17)
163,755
9
10,967
1
109,759
6
(
57,200) (
3)
(
72,786) (
4)
(
26,528) (
2)
(
35,788) (
2)
127,967
7

(
84,783) (
4)
$ 43,184
3

($ 15,485) (
1)
(
15,485) (
1)
($ 15,485) (
1)
$ 27,699
2

$ 100,343
6

(
57,159) (
3)
$ 43,184
3

$ 84,858
5

(
57,159) (
3)
$ 27,699
2

$ 0.49

$ 0.46
 (revised) April 1 to June
30,2022
Amount
%
$ 1,994,321
100
(
1,376,286) (
69)
618,035
31
(
49,208 ) (
2)
(
79,293 ) (
4)
(
53,808 ) (
3)
(
3,144)
-

(
185,453) (
9)
432,582
22
1,918
-
168,536
8
(
793,503 ) (
40)
(
41,438 ) (
2)
(
24,597) (
1)
(
689,084) (
35)
(
256,502 ) (
13)
(
129,509) (
7)
($ 386,011) (
20)
($ 5,567)
-

(
5,567)
-

($ 5,567)
-

($ 391,578) (
20)
($ 333,098 ) (
17)
(
52,913) (
3)
($ 386,011) (
20)
($ 338,665 ) (
17)
(
52,913) (
3)
($ 391,578) (
20)
($ 1.58)
($ 1.58)		 Unit: NT$Thousand
(Except for earnings per share)
January 1 to June 30,
2023
(revised) January 1 to
June 30,2022
Amount
%
Amount
%
$ 3,363,481
100
$ 3,701,813
100
(
2,464,241)(
74) (
2,680,464) (
73)
899,240
26
1,021,349
27
(
127,343) (
4) (
95,715) (
2)
(
230,006) (
7) (
172,254) (
5)
(
179,282) (
5) (
106,369) (
3)
(
7,576)
-
(
4,602)
-
(
544,207)(
16) (
378,940) (
10)
355,033
10
642,409
17
20,733
1
3,685
-
120,003
3
180,806
5
21,203
1
(
1,281,094) (
34)
(
130,128) (
4) (
76,176) (
2)
(
39,491)(
1) (
34,726) (
1)
(
7,680)
-
(
1,207,505) (
32)
347,353
10
(
565,096) (
15)
(
165,291)(
5) (
134,341) (
4)
$ 182,062
5
($ 699,437) (
19)
($ 13,323)
-
$ 9,049
-
(
13,323)
-
9,049
-
($ 13,323)
-
$ 9,049
-
$ 168,739
5
($ 690,388) (
19)
$ 308,394
9
($ 577,796) (
16)
(
126,332)(
4) (
121,641) (
3)
$ 182,062
5
($ 699,437) (
19)
$ 295,071
9
($ 568,747) (
16)
(
126,332)(
4) (
121,641) (
3)
$ 168,739
5
($ 690,388) (
19)
$ 1.50
($ 2.72)
$ 1.39
($ 2.72)
4000
Operating income
5000
Operating costs
5900
Gross profit
Operating Expenses
6100
Selling Expenses
6200
Administrative Expenses
6300
R&D Expenses
6450
Expected loss on credit impairment
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
Net profit (loss) before tax
7950
Income Tax Expense
8200
Net profit (loss) for the period
Other Comprehensive Incomes
(Net)
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
Basic earnings per share (loss)
9750
Net profit (loss) for the period
Diluted earnings per share (loss)
9850
Net profit (loss) for the period		 6(22) and
7
6(5)

6(27)
(28)



12(2)


6(23)
6(24)
6(25)

6(26)

6(6)


6(29)

6(21)





6(30)
6(30)

The accompanying notes are an integral part of the consolidated financial statements and should be read in conjunction.

Chairperson: Sean Chen

Managerial Officer: Lidon Chen

Accounting Officer: Eve Yang

~9~

Taiwan Mask Corporation and Subsidiaries Consolidated Statement of Changes in Equity January 1 to June 30, 2023, and 2022

Unit: NT$Thousand

January 1 to June 30, 2022
Balance January 1, 2022
Net loss for the period
Other Comprehensive Profit or Loss
Total comprehensive income for the year
Distribution and appropriation of earnings for 2021
Legal capital reserve
Cash dividends
Distribution of cash from capital surplus
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
Subsidiaries donated treasury stock
Cash increase of non-controlling equity in Subsidiaries
Balance June 30, 2022
January 1 to June 30, 2023
Balance as at January 1, 2023
Net profit for the period
Other Comprehensive Profit or Loss
Total comprehensive income for the year
Distribution and appropriation of earnings for 2022
Legal capital reserve
Cash dividends
Distribution of cash from capital surplus
Changes in shares of affiliates and joint ventures recognized under the equity method
Subsidiaries donated treasury stock
Treasury stocks transfer to employees
Payment of overdue unclaimed dividends to shareholders
Increase in non-controlling interests in mergers
Balance as at June 30, 2023		 Notes Equity Equity a ttributableto share holders of the parentcompany holders of the parentcompany holders of the parentcompany holders of the parentcompany Non-
controlling
Interests		 Total Equity
Capital stock Capital surplus Retain ed earnings Otherequityinterests Treasurystock Total
Legal reserve Unappropriated
earnings		 Financial
statement
translation
differences 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)(20)
6(19)
6(19)
6 (18)(19)
6(18)
6(18)
6(21)
6(20)
6 (19)(20)
6(19)
6(18)
6(18)
6(19)		 $ 2,556,735
-
-
-
-
-
-
-
-
-
-
-
-
$ 2,556,735
$ 2,564,465
-
-
-
-
-
-
-
-
-
-
-
$ 2,564,465		 $ 1,315,828
-
-
-
-
-
(
241,189 )
7,189
21,107
16,831
-
-
-
$ 1,119,766
$ 1,251,681
-
-
-
-
-
(
49,797 )
8
-
-
(
71 )
-
$ 1,201,821		 $ 656,037
-
-
-
113,915
-
-
-
-
-
-
-
-
$ 769,952
$ 769,952
-
-
-
57,508
-
-
-
-
-
-
-
$ 827,460		 $ 1,470,151
(
577,796
)
-
(
577,796
)
(
113,915
)
(
241,189
)
-
(
127,751
)
-
-
-
-
-
$ 409,500
$ 1,729,293
308,394
-
308,394
(
57,508
)
(
572,665
)
-
-
-
-
-
-
$ 1,407,514		 $ 6,698
-
9,049
9,049
-
-
-
-
-
-
-
-
-
$ 15,747
$ 13,174
-
(
13,323
)
(
13,323
)
-
-
-
-
-
-
-
-
($ 149
)		 ($ 2,666
)
-
-
-
-
-
-
-
-
-
-
-
-
($ 2,666
)
($ 2,666
)
-
-
-
-
-
-
-
-
-
-
-
($ 2,666
)		 ($ 941,423 )
-
-
-
-
-
-
-
-
-
(
767,078 )
4,980
-
($ 1,703,521 )
($ 1,778,979 )
-
-
-
-
-
-
-
5,692
591,688
-
-
($ 1,181,599 )		 $ 5,061,360
(
577,796 )
9,049
(
568,747 )
-
(
241,189 )
(
241,189 )
(
120,562 )
21,107
16,831
(
767,078 )
4,980
-
$ 3,165,513
$ 4,546,920
308,394
(
13,323 )
295,071
-
(
572,665 )
(
49,797 )
8
5,692
591,688
(
71 )
-
$ 4,816,846		 ($ 187,509
)
(
121,641
)
-
(
121,641
)
-
-
-
153,187
-
2,230
-
-
200,240
$ 46,507
($ 112,713
)
(
126,332
)
-
(
126,332
)
-
-
-
-
-
-
-
62,923
($ 176,122
)		 $ 4,873,851
(
699,437 )
9,049
(
690,388 )
-
(
241,189 )
(
241,189 )
32,625
21,107
19,061
(
767,078 )
4,980
200,240
$ 3,212,020
$ 4,434,207
182,062
(
13,323 )
168,739
-
(
572,665 )
(
49,797 )
8
5,692
591,688
(
71 )
62,923
$ 4,640,724

The accompanying notes are an integral part of the consolidated financial statements and should be read in conjunction.

Chairman: Sean Chen

Managerial Officer: Lidon Chen

Accounting Officer: Eve Yang

~10~

Taiwan Mask Corporation and Subsidiaries Consolidated Statement of Cash Flows January 1 to June 30, 2023, and 2022

Unit: NT$Thousand

Cash Flow from Operating Activities
Net income before tax (loss)
Adjustments to Reconcile Net Income to Net Cash Flow
from Operating Activities
Revenues and Expenses
Depreciation

Amortization

Expected loss on credit impairment

Interest income

Interest Expenses

Subsidiaries donated treasury stock

Dividend income

Loss of financial assets at fair value through
profit or loss

Loss (gain) on disposal of investments

Share-based payment transaction

Share of losses of affiliated companies
recognized under the equity method

Disposal of interests in property, plant and
equipment

The Changes of Assets/ Liabilities related to
Operating Activities
Net Changes of Assets 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
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
Interest Paid
Income Tax Paid
Cash In-Flow (Out-Flow) from Operating
Activities		 Notes
January 1 to June
30, 2023
(Adjusted) For the
six months ended
June 30, 2022
$ 347,353 ( $ 565,096 )
6(27)
409,380
223,558
6(27)
25,178
20,306
12(2)
7,576
4,602
6(23)
(
20,733 ) (
3,685 )
6(26)
130,128
76,176
7
5,692
4,980
6(24)
(
94,064 ) (
148,098 )
6(25)
93,855
1,272,501
6(25)
(
101,102 )
48,908
6(18)
-
19,061
6(6)
39,491
34,726
6(25)
(
401 ) (
5,942 )
(
27,686 ) (
953,373 )
41,275
14,619
1,349 (
3,720 )
367,534 (
402,880 )
1,357
1,408
(
13,291 )
39,887
(
138,750 ) (
25,632 )
(
225,968 ) (
20,321 )
31,553 (
26,592 )
29,269 (
1,137 )
(
52,515 )
164,340
(
79,729 )
32,936
(
7,869 )
6,559
(
284 )
-
137,016
34,155
- (
225 )
53,572
65,370
(
3,211 ) (
418 )
4,075 (
13,994 )
960,050 (
107,021 )
20,733
3,667
(
121,092 ) (
73,580 )
(
238,185 ) (
130,314 )
621,506 (
307,248 )

(continued on next page) 

~11~

Taiwan Mask Corporation and Subsidiaries Consolidated Statement of Cash Flows January 1 to June 30, 2023, and 2022

Cash Flow from Investment Activities
Acquisition of Amortized Cost Financial Assets
Disposal of Amortized Cost Financial Assets
Cash outflows from changes in consolidated
entities

Acquisition of Property, Plants and Equipment

Disposal of Property, Plants and Equipment
Acquisition of Intangible Assets

Increase in Refundable Deposit
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

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 June
30, 2023
(Adjusted) For the
six months ended
June 30, 2022
( $ 170,348 ) ( $ 10,720 )
79,948
-
6(31)
(
78,027 )
-
6 (32)
(
1,852,402 ) (
1,636,262 )
401
19,352
6(11)
(
26,786 ) (
4,817 )
(
21,286 ) (
9,439 )
(
2,068,500 ) (
1,641,886 )
6 (33)
3,677,078
3,214,322
6 (33)
(
3,050,670 ) (
1,229,071 )
6 (33)
1,140,071
145,604
6 (33)
(
663,250 ) (
42,117 )
591,688
-
- (
767,078 )
6 (33)
(
12,422 ) (
20,002 )
6 (33)
17,151
33,270
-
200,240
(
71 )
-
1,699,575
1,535,168
(
15,270 ) (
7,132 )

237,311 (
421,098 )
6(1)
1,749,957
2,681,819
6(1)
$ 1,987,268$ 2,260,721

The accompanying notes are an integral part of the consolidated financial statements and should be read in conjunction.

Chairperson: Sean Chen

Managerial Officer: Lidon Chen

Accounting Officer: Eve Yang

~12~

Taiwan Mask Corporation and Subsidiaries Notes to the Consolidated Financial Statements

Q2 2023 and 2022

(Reviewed, not audited)

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 consolidated financial statements were reported to the Board of Directors and issued on August 4, 2023.

III. Application of New and Revised International Financial Reporting Standards

(I) The impact from adopting the newly released and revised IFRS 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 2023:

Newly released / corrected / amended standards and interpretations
Amendment to IAS 1 - "Disclosure of Accounting Policies"
Amendment to IAS 8 - "Definition of Accounting Estimates"
Amendments to IAS 12, "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.

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

None. 

~13~

(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 IFRS issued by the IASB but not yet recognized by the FSC:

Newly released / corrected / amended standards and
interpretations
Amendments to IFRS 10 and IAS 28 - “Sale or contribution of
assets between an investor and its associate or joint venture”
Amendments to IFRS 16 - “Liabilities of Lease from the
Leaseback”
IFRS 17 - Insurance contracts
Amendment to IFRS 17 - Insurance contracts
Amendments to IFRS 17 "First-time Adoption of IFRS 17 and
IFRS 9 - Comparative Information"
Amendment to IAS 1 "Classification of Liabilities as Current or
Non-Current"
Amendment to IAS 1 "Non-Current Liabilities With Covenants"
Amendments to IAS 7 and IFRS 7 "Supplier Financing
Arrangements"
Amendment to IAS 12 "International Tax Reform - Pillar Two
Model Rules"		 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
January 1, 2024
May 23, 2023

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

Significant accounting policies are the same as those in Note 4 of the 2022 consolidated financial statements, except for the compliance statements, basis of preparation, basis of consolidation, and applicable parts of interim financial statements. These policies have been consistently applied to all the periods presented, unless otherwise stated.

(I) Compliance statement

  1. The consolidated financial statements of the Group have been prepared in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” and the IAS No. 34, “Interim Financial Reporting” as endorsed by the FSC.

  2. The consolidated financial statement should be read in conjunction with the 2022 consolidated financial statement.

(II) Basis of Preparation

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

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

~14~

  • (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 IFRS, IAS, IFRIC Interpretations, and SIC Interpretations as endorsed by the FSC (collectively referred herein as the “IFRSs”) requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 5.

(III) Basis of consolidation

  1. The basis for preparation of consolidated financial statements

The principles for preparing the consolidated financial statement are the same as those of the 2022 consolidated financial statement.

  1. Subsidiaries included in the consolidated financial statements:
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		 Name of Subsidiary
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		 Ownership (%)
Main Business Activity
June 30, 2023
December 31, 2022
June 30, 2022
Explanation





Name of Investor
100
100
100
Note 7
Name of Investor
100
100
100
Electronics
components
manufacturing,
electronics materials
and precision
equipment distribution
and power component
design
100
100
100
Manufacturing, retail,
wholesale and
international trade of
medical equipment
91.53
91.53
91.53
Note 7
Manufacturing, retail,
wholesale and
international trade of
medical equipment
0.23
0.23
0.23
Note 7
Design, packaging and
testing of NAND flash
memory, solid state
drives and the related
products
47.19
47.19
47.19
Note 4,
Note 7
Name of Investor
100
100
52.93
Note 5,
Note 7
Precious metal coating 53.00
53.00
-
Note 5,
Note 7		 
~15~
Name of
Investor
Xsense
Technology
Corporation
Youe Chung
Capital
Corporation
Youe Chung
Capital
Corporation
Youe Chung
Capital
Corporation
Aptos
Technology
INC.
Aptos
Technology
INC.
Aptos
Technology
INC.
ADL Energy
Corp
Miracle
Technology
CO., LTD.
Miracle
Technology
CO., LTD.
Jing Hao
Investment Co.,
Ltd.
Jing Hao
Investment Co.,
Ltd.
Miko-China
Enterprise
(Shanghai) Co.,
Ltd.
Miracle
International
Enterprise(Shan
ghai) Co., Ltd.		 Name of
Subsidiary
Main Business Activity
Xsense
Technology
Corporation
(B.V.I.) Taiwan
Branch
Precious metal coating
Digital-Can
Tech. Co., Ltd.
3D Printing and Plastic Mold
Design
Pilot Battery
Co., Ltd.
Electronic parts and
components and energy
technical services
Moment
Semiconductor,
Inc.
Retail and wholesale of
memory products
ADL Energy
Corp
Electronic parts and
components and energy
technical services
One Test
Systems
Research, development and
design of test equipment and
related components
New Sunrise
Limited
Name of Investor
Aptos Global
Holding Corp.
Name of Investor
Jing Hao
Investment
Co., Ltd.
Name of Investor
Miracle
International
Enterprise(Sha
nghai) Co.,
Ltd.
Electronics components
manufacturing, electronics
materials and precision
equipment distribution and
power component design

Miko-China
Enterprise
(Shanghai)
Co., Ltd.
Electronics components
manufacturing, electronics
materials and precision
equipment distribution and
power component design

MIKO
Technology
Co., Ltd.
Electronics components
manufacturing, electronics
materials and precision
equipment distribution and
power component design

Sichuan
Miracle Power
Technology
Co., Ltd.
IC product design, production
and sales
Sichuan
Miracle Power
Technology
Co., Ltd.
IC product design, production
and sales		 Ownership (%)
June 30, 2023
December 31,
2022
-
-
57.39
57.39
58.33
-
53.33
-
100
100
100
-
100
100
100
100
100
100
100
100
100
100
100
100

79.17
79.17

20.83
20.83		 June 30, 2022
100
57.39
-
-
100
-
100
100
100
100
100
100
79.17
20.83		 Expla

June 30, 2023
-
57.39
58.33
53.33
100
100
100
100
100
100
100
100

79.17

20.83
natio
n
Note
5,
Note
7
Note
7
Note
1,
Note
7
Note
2,
Note
7
Note
7
Note
3,
Note
7
Note
7
Note
7		 
~16~

Ownership (%)

Name of
Investor
Innova Vision
INC.
Innova Vision
INC.
Innova Vision
INC.
Innova Vision
(B.V.I.) Inc.		 Name of
Subsidiary
Main Business Activity
Innova
Technology
Medical equipment retail and
wholesale
Innova Vision
(B.V.I.) Inc.
Name of Investor
iPro Vision Inc.Medical equipment retail and
wholesale
iPro Vision Inc.Medical equipment retail and
wholesale		 June 30, 2023
100
100
52.03
47.97		 December 31,
2022
100
100
52.03
47.97		 June 30, 2022
100
100
52.03
47.97		 Expla
natio
n
Note
7
Note
7
Note
6,
Note
7
Note
6,
Note
7

  • Note 1: In March 2023, the Company’s subsidiary, Youe Chung Capital Corporation, invested in Pilot Battery Co.,Ltd. with 58.33% shareholding.

  • Note 2: In March 2023, the Company’s subsidiary, Youe Chung Capital Corporation, invested in Moment Semiconductor, Inc. with 53.33% shareholding.

  • Note 3: In May 2023, the Company's subsidiary Aptos Technology INC. invested in One Test Systems, with 100% shareholding.

  • Note 4: The Company's subsidiary, Youe Chung Capital Corporation, which holds a majority of the Board of Directors of the company, has substantial control over the company and therefore included the company in the consolidated financial statements as a consolidated entity.

  • Note 5: In November 2022, Xsense Technology Corporation reduced its capital, leaving only one share which was 100% owned by Youe Chung Capital Corporation. At the same time, Xsense Technology Corporation applied for the transfer of its shares in Xsense Technology Corporation (B.V.I.) Taiwan Branch to the original shareholders of Xsense Technology Corporation in the same proportion. After the transfer, the original shareholders of Xsense Technology Corporation switched to owning Xsense Technology Corporation (B.V.I.) Taiwan Branch. As of June 30, 2023, Youe Chung Capital Corporation held 100% of Xsense Technology Corporation and 53.00% of Xsense Technology Corporation (B.V.I.) Taiwan Branch, respectively.

  • Note 6: Originally named Innova Vision Kabushiki Kaisha, renamed to iPro Vision Inc. on February 17, 2023.

  • Note 7: The financial statements of the entity as of and for the six months ended June 30, 2023 and 2022 were not reviewed by independent accountants as the entity did not meet the definition of a significant subsidiary.

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

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

  • Significant restrictions: None. 

~17~
  1. Subsidiaries that have non-controlling interests that are material to the Group:

As of June 30, 2023, December 31, 2022 and June 30, 2022, the non-controlling interest amounted to ($176,122), ($112,713) and $46,507, respectively. The following information shows subsidiaries that have non-controlling interests that are material to the Group:

Name of
Subsidiary
Aptos
Technology and
its subsidiaries
Name of
Subsidiary
Aptos
Technology and
its subsidiaries		 Main location Non-controlling Interests
June 30, 2023
Ownership in %
Amount
($ 194,793)
52.81%		 December 31, 2022
Ownership in %
Amount
($ 100,582)
52.81%
Non-controlling Interests
June 30, 2022
Ownership in %
Amount
$ 580
52.81%		 Explanation
Explanation
of business

Taiwan
Main location
of business

Taiwan

Aggregate financial information of subsidiaries:

Balance Sheet

Current assets
Non-Current Assets
Current liabilities
Non-current liabilities
Total net assets		 Aptos Technology and its subsidiaries
June 30, 2023
December 31, 2022
$ 442,792 $ 339,417
663,470 579,075
( 1,078,997) ( 679,551)
( 396,111)
( 429,397)
($ 368,846)
($ 190,456)		 June 30, 2022
$ 505,969
572,273
( 844,867)
( 232,276)
$ 1,099

June 30, 2023
$ 442,792
663,470
( 1,078,997)
( 396,111)
($ 368,846)		 
~18~

Statement of Comprehensive Income

Revenue
Net loss before taxes
Income tax benefits
Net loss of current period from
continuing operations
Net loss for the period
Other comprehensive income (net
after tax)
Total comprehensive income for
the year
Total comprehensive income
attributable to non-controlling
interests
Revenue
Net loss before taxes
Income tax benefits
Net loss of current period from
continuing operations
Net loss for the period
Other comprehensive income (net
after tax)
Total comprehensive income for
the year		 Aptos Technology and its subsidiaries
April 1 to June 30, 2023
April 1 to June 30, 2022
$ 90,573
$ 167,951
( 83,779)
( 39,909)
30
-
( 83,749)
( 39,909)
( 83,749)
( 39,909)
-
-
($ 83,749)
($ 39,909)
$-
$-
Aptos Technology and its subsidiaries
January 1 to June 30, 2023
January 1 to June 30, 2022
$ 174,816
$ 356,565
( 178,404)
( 103,923)
15
-
( 178,389)
( 103,923)
( 178,389)
( 103,923)
-
-
($ 178,389)
($ 103,923)		 Aptos Technology and its subsidiaries
April 1 to June 30, 2023
April 1 to June 30, 2022
$ 90,573
$ 167,951
( 83,779)
( 39,909)
30
-
( 83,749)
( 39,909)
( 83,749)
( 39,909)
-
-
($ 83,749)
($ 39,909)
$-
$-
Aptos Technology and its subsidiaries
January 1 to June 30, 2023
January 1 to June 30, 2022
$ 174,816
$ 356,565
( 178,404)
( 103,923)
15
-
( 178,389)
( 103,923)
( 178,389)
( 103,923)
-
-
($ 178,389)
($ 103,923)

January 1 to June 30, 2023
$ 174,816
( 178,404)
15
( 178,389)
( 178,389)
-
($ 178,389)

$ 356,565
( 103,923)
-
( 103,923)
( 103,923)
-
($ 103,923)

Statements of Cash Flows

Net Cash In-Flow (Out-Flow)
from Operating Activities
Net Cash Outflow from Investing
Activities
Net Cash In-Flow (Out-Flow)
from Funding Activities
Increase (Decrease) of Cash and
Cash Equivalents
Beginning Balance of Cash and
Cash Equivalents
Ending Balance of Cash and Cash
Equivalents		 Aptos Technology and its subsidiaries
January 1 to June 30, 2023
January 1 to June 30, 2022
($ 49,890)
$ 38,797

( 38,882)
( 63,088)
155,602
196,345
66,830
172,054
18,461
34,148

$ 85,291
$ 206,202		 Aptos Technology and its subsidiaries
January 1 to June 30, 2023
January 1 to June 30, 2022
($ 49,890)
$ 38,797

( 38,882)
( 63,088)
155,602
196,345
66,830
172,054
18,461
34,148

$ 85,291
$ 206,202

January 1 to June 30, 2023
($ 49,890)

( 38,882)
155,602
66,830
18,461

$ 85,291

$ 38,797
( 63,088)
196,345
172,054
34,148
$ 206,202		 
~19~

(IV) Employee benefits

Pensions

Defined benefit plans

The calculation of pension cost during the interim period adopts the pension cost rate determined by actuarial calculations at the end of the previous financial year, and is based on the beginning of the year to the end of the current period. If there are major market changes and major reductions, liquidation or other major one-off events after the end date, adjustments shall be made and relevant information shall be disclosed in accordance with the abovementioned policies.

  • (V) Income tax

Income tax expenses of the interim period are calculated based on the estimated annual average effective tax rate applied to the pre-tax profit and loss of the interim period, and the relevant information shall be disclosed in accordance with the aforementioned policies.

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

There are no major changes, please refer to Note 5 of 2022 consolidated financial statements. 

~20~

VI. Summary of Significant Accounting Items

(I) Cash and Cash Equivalents

Cash on hand
Checking accounts and demand
deposits
Time deposits
Total		 June 30, 2023
$ 673
1,572,371
414,224
$ 1,987,268		 December 31,
2022
$ 612
1,012,305
737,040
$ 1,749,957		 June 30, 2022
$ 431
1,878,490
381,800
$ 2,260,721

  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.

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

Items
June 30, 2023
Current items:
Mandatory financial assets at fair
value through profit or loss
Shares of listed and OTC company $ 1,305,187
Beneficiary certificates
500
1,305,687
Valuation adjustment
257,008
$ 1,562,695
Financial liabilities mandatorily
measured at fair value through
profit or loss
Convertible bond call/put options
$ 4,692
Non-current items:
Mandatory financial assets at fair
value through profit or loss
Shares of listed and OTC company $ 2,674,972
Not listed, OTC or emerging stock
board stocks
114,733
Private equity
20,000
2,809,705
Valuation adjustment
142,683
$ 2,952,388		 December 31,
2022
$ 1,254,041
500
1,254,541
330,057
$ 1,584,598
$ 5,697
$ 2,596,725
115,338
20,000
2,732,063
164,494
$ 2,896,557		 June 30, 2022
$ 2,282,211
500
2,282,711
142,786
$ 2,425,497
$ 13,408
$ 2,213,423
122,619
20,000
2,356,042
( 111,903)
$ 2,244,139		 
~21~
  1. Details of financial assets/liabilities at fair value through profit or loss recognized in profit or loss are as follows:
Financial assets mandatorily
measured at fair value
through profit or loss
Shares of listed and OTC
company and Convertible
bond call/put options
Financial assets mandatorily
measured at fair value
through profit or loss
Shares of listed and OTC
company and Convertible
bond call/put options		 April 1 to June 30, 2023

($ 80,975)
January 1 to June 30, 2023

$ 7,247		 April 1 to June 30, 2022
($ 800,402)
January 1 to June 30, 2022

($ 1,321,409)

  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 and liabilities at fair value through profit or loss.

(III) Financial assets measured at amortized cost

Items
Current items:
Demand Deposit
Time deposits
Non-current items:
Demand Deposit
Time deposits
Total		 June 30, 2023
$ 172,357
123,165
$ 295,522
$ 4,000
458,945
$ 462,945		 December 31,
2022
$ 102,500
57,965
$ 160,465
$ 22,383
485,219
$ 507,602		 June 30, 2022
$ 15,338
22,500
$ 37,838
$ -
51,145
$ 51,145
  1. Financial assets at amortized cost is recognized in the profit or loss shown as follows:
Interest income
Interest income		 April 1 to June 30, 2023
$ 1,968
January 1 to June 30, 2023
$ 3,946		 April 1 to June 30, 2022
$ 35
January 1 to June 30, 2022

$ 66		 
~22~

  1. As of June 30, 2023, December 31, 2022 and June 30, 2022, without taking into account any collateral held or credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the financial assets at amortized cost held by the Group was $758,467, $668,067 and $88,983, respectively.

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

(IV) Notes and accounts receivable

Notes Receivables
Accounts Receivables
Accounts Receivables－Related Parties
Less: Loss allowance		 June 30, 2023
$ 96
$ 1,170,284
989
1,171,273
( 28,174)
$ 1,143,099		 December 31,
2022
$ 1,361
$ 1,521,609
2,346
1,523,955
( 20,597)
$ 1,503,358		 June 30, 2022
$ 3,783
$ 1,676,667
15,404
1,692,071
( 14,641)
$ 1,677,430
  1. Aging of accounts receivable notes receivable is as follows:
Not past due
Up to 30 days
31-90 days
91-180 days
More than 181
days past due
Not past due
Up to 30 days
31-90 days
91-180 days
More than 181
days past due		 June 30, 2023
Accounts
Receivables
$ 855,817
183,222
52,190
61,294
18,750
$ 1,171,273		 Notes
Receivables
$ 96
-
-
-
-
$ 96		 December 31, 2022 Notes
Receivables
$ 1,361
-
-
-
-
$ 1,361
Notes
Receivables
$ 3,783
-
-
-
-
$ 3,783

Accounts
Receivables
$ 1,188,466
224,106
85,210
14,582
11,591
$ 1,523,955
June 30, 2022
Accounts
Receivables
$ 1,333,744
275,432
64,434
2,145
16,316
$ 1,692,071

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

  1. As of June 30, 2023, December 31, 2022 and June 30, 2022, the balances of accounts receivable and notes receivable were generated from customer contracts. As of January 1, 
~23~

2022, the balance of receivables under customer contracts was $1,280,623.

  1. As of June 30, 2023, December 31, 2022 and June 30, 2022, without taking into account any collateral held or credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the Group’s accounts receivable was $1,143,099, $1,503,358 and $1,677,430, respectively.

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

  3. (V) Inventories

June 30, 2023

June 30, 2023
Raw materials
Work in process
Finished goods
Merchandise
Total		 Cost
$ 278,598
125,978
164,696
142,860
$ 712,132		 Loss allowance on decline
Book value
$ 207,271
109,854
136,721
135,960
in market value of
inventories
($ 71,327)
( 16,124)
( 27,975)
( 6,900)
($ 122,326)

$ 589,806

December 31, 2022

December 31, 2022
Raw materials
Work in process
Finished goods
Merchandise
Total		 Cost
$ 257,443
84,578
74,560
98,708
$ 515,289		 Loss allowance on decline
Book value
$ 179,445
75,110
36,942
91,033
in market value of
inventories
($ 77,998)
( 9,468)
( 37,618)
( 7,675)
($ 132,759)

$ 382,530

June 30, 2022

June 30, 2022
Raw materials
Work in process
Finished goods
Merchandise
Total		 Cost
$ 319,542
71,528
101,475
49,921
$ 542,466		 Loss allowance on decline
Book value
$ 237,172
62,834
80,522
48,821
in market value of
inventories
($ 82,370)
( 8,694)
( 20,953)
( 1,100)
($ 113,117)

$ 429,349		 
~24~

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

April 1 to June 30, 2023
Cost of goods sold
$ 1,349,143
Loss on falling prices of inventory and
inventory obsolescence (gain from
recovery)
( 21,004)
Revenue from sales of leftovers
( 428)
$ 1,327,711
January 1 to June 30, 2023
Cost of goods sold
$ 2,483,586
Loss on falling prices of inventory and
inventory obsolescence (gain from
recovery)
( 14,784)
Revenue from sales of leftovers
( 4,561)
$ 2,464,241		 April 1 to June 30, 2022
$ 1,374,365
1,921
-
$ 1,376,286
January 1 to June 30, 2022

$ 2,653,095
27,369
-
$ 2,680,464

From April 1 to June 30, 2023 and January 1 to June 30, 2023, part of the inventory for which the provision for impairment losses had been made in the previous period was sold, resulting in a recovery in the net realizable value of the inventory, which was recognized as a decrease in operating costs.

(VI) Investment under Equity Method

Affiliates:
Advagene Biopharma Co., Ltd.
Weida Hi-Tech Co., Ltd.		 June 30, 2023
$ 26,163
58,911
$ 85,074		 December 31,
2022
$ 40,485
84,080
$ 124,565		 June 30, 2022
$ 60,119
91,033
$ 151,152

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

Net loss of current period from
continuing operations
Net loss of current period from
continuing operations		 April 1 to June 30, 2023
($ 26,528)
January 1 to June 30, 2023
($ 39,491)		 April 1 to June 30, 2022
($ 24,597)
January 1 to June 30, 2022

($ 34,726)

As of June 30, 2023, December 31, 2022 and June 30, 2022, the Group held 30.73%, 30.73% and 30.73% of shares of Advagene Biopharma Co., Ltd., respectively, and 28.20%, 28.20% and 28.20% of shares of Weida Hi-Tech Co., Ltd., respectively, making it the single largest shareholder in each case. However, the Group did not hold a majority of the board of directors' 

~25~

seats and therefore did not participate in all operational decisions and business policies including strategic decisions (e.g., financing, acquisition, personnel and dividend policies, etc.) of Advagene Biopharma Co., Ltd. Weida Hi-Tech Co., Ltd. The Group's shareholdings alone did not meet the required attendance rate at shareholders' meetings, indicating that the Group has no power to direct relevant activities and therefore the Group does not have control over the company and has only significant influence. 

~26~

(VII) Property, plant and equipment

January 1, 2023
Cost
Accumulated depreciation
2023
January 1
Add - Cost
Disposals - Cost
Disposal - Accumulated
depreciation
Depreciation
Reclassification
Addition due to increase in non-
controlling interests of
Net exchange differences - Cost
Net exchange differences -
Accumulated depreciation
June 30
June 30, 2023
Cost
Accumulated depreciation		 Buildings and
structures (including		 Machinery and
equipment
$ 5,286,246
( 2,144,752)
$ 3,141,494
$ 3,141,494
1,257,472
( 13,774)
13,774
( 241,717)
122,763
5,423
13
( 7)
$ 4,285,441
$ 6,669,118
( 2,383,677)
$ 4,285,441		 Office equipment Transportation
equipment
$ 8,466
( 5,556)
$ 2,910
$ 2,910
2,165
-
-
( 586)
-
550
5
( 5)
$ 5,039
$ 11,235
( 6,196)
$ 5,039		 Mold equipment
$ 313,370
( 295,689)
$ 17,681
$ 17,681
1,296
-
-
( 3,531)
1,047
-
-
-
$ 16,493
$ 315,712
( 299,219)
$ 16,493		 Other equipment Unfinished construction
and equipment under
acceptance
Total
$ 538,013
$ 9,345,560
-
( 3,461,899)
$ 538,013
$ 5,883,661
$ 538,013
$ 5,883,661
1,433,948
2,811,477
-
( 57,135)
-
57,135
-
( 380,184)
( 355,378)
( 82,681)
-
43,401
-
24
-
( 14)
$ 1,616,583
$ 8,275,684
$ 1,616,583
$ 12,113,085
-
( 3,837,401)
$ 1,616,583
$ 8,275,684
and equipment under
acceptance
$ 538,013
-
$ 538,013
$ 538,013
1,433,948
-
-
-
( 355,378)
-
-
-
$ 1,616,583
$ 1,616,583
-
$ 1,616,583

land)
$ 2,538,391
( 737,646)
$ 1,800,745
$ 1,800,745
34,119
-
-
( 86,080)
113,672
35,052
-
-
$ 1,897,508
$ 2,734,000
( 836,492)
$ 1,897,508

$ 65,406
( 34,354)
$ 31,052
$ 31,052
6,756
( 5,405)
5,405
( 7,368)
549
1,954
3
( 2)
$ 32,944
$ 70,225
( 37,281)
$ 32,944
$ 595,668
( 243,902)
$ 351,766
$ 351,766
75,721
( 37,956)
37,956
( 40,902)
34,666
422
3
-
$ 421,676
$ 696,212
( 274,536)
$ 421,676		 
~27~
January 1, 2022
Cost
Accumulated depreciation
2022
January 1
Add - Cost
Disposals - Cost
Disposal - Accumulated
depreciation
Depreciation
Reclassification
Net exchange differences - Cost
Net exchange differences -
Accumulated depreciation
June 30
June 30, 2022
Cost
Accumulated depreciation		 Buildings and
structures
(including land)
$ 2,327,441
( 654,360)
$ 1,673,081
$ 1,673,081
65,297
-
-
( 65,716)
126,811
-
-
$ 1,799,473
$ 2,519,549
( 720,076)
$ 1,799,473		 Machinery and
equipment
$ 3,631,853
( 1,563,467)
$ 2,068,386
$ 2,068,386
776,165
( 307,499)
307,499
( 117,965)
( 3,223)
27
( 3)
$ 2,723,387
$ 4,097,323
( 1,373,936)
$ 2,723,387		 Office equipment
$ 46,490
( 21,271)
$ 25,219
$ 25,219
10,580
-
-
( 4,678)
327
30
( 26)
$ 31,452
$ 57,427
( 25,975)
$ 31,452		 Transportation
equipment
$ 6,544
( 3,444)
$ 3,100
$ 3,100
-
-
-
( 466)
-
20
( 22)
$ 2,632
$ 6,564
( 3,932)
$ 2,632		 Mold equipment
$ 18,784
( 6,472)
$ 12,312
$ 12,312
1,399
-
-
( 1,257)
-
-
-
$ 12,454
$ 20,183
( 7,729)
$ 12,454		 Other equipment
$ 63,751
( 5,504)
$ 58,247
$ 58,247
25,829
( 13,796)
386
( 9,131)
3,582
-
-
$ 65,117
$ 79,366
( 14,249)
$ 65,117		 Unfinished construction
and equipment under
acceptance
Total
$ 246,016
$ 6,340,879
-
( 2,254,518)
$ 246,016
$ 4,086,361
$ 246,016
$ 4,086,361
375,274
1,254,544
-
( 321,295)
-
307,885
-
( 199,213)
( 78,258)
49,239
-
77
-
( 51)
$ 543,032
$ 5,177,547
$ 543,032
$ 7,323,444
-
( 2,145,897)
$ 543,032
$ 5,177,547
and equipment under
acceptance
$ 246,016
-
$ 246,016
$ 246,016
375,274
-
-
-
( 78,258)
-
-
$ 543,032
$ 543,032
-
$ 543,032

  1. For the six months ended June 30, 2023, and 2022, the Group did not capitalize interest.

  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. 

~28~

  • (VIII) Leasing arrangements - lessee

  • 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.

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

  • 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
Transportation equipment
(company vehicles)
Other equipment
Land
Buildings and structures
Transportation equipment
(company vehicles)
Other equipment		 June 30, 2023
December 31,
2022
June 30, 2022
Book value
Book value
Book value
$ 494,045
$ 507,948
$ 526,351
11,002
1,018
56,468
14,644
16,241
14,476
41,922
25,404
25,843
$ 561,613
$ 550,611
$ 623,138
April 1 to June 30, 2023
April 1 to June 30, 2022
Depreciation
Depreciation
$ 6,428
$ 6,381
2,959
3,373
3,096
2,140
1,018
297
$ 13,501
$ 12,191
January 1 to June 30, 2023
January 1 to June 30, 2022		 June 30, 2023
December 31,
2022
June 30, 2022
Book value
Book value
Book value
$ 494,045
$ 507,948
$ 526,351
11,002
1,018
56,468
14,644
16,241
14,476
41,922
25,404
25,843
$ 561,613
$ 550,611
$ 623,138
April 1 to June 30, 2023
April 1 to June 30, 2022
Depreciation
Depreciation
$ 6,428
$ 6,381
2,959
3,373
3,096
2,140
1,018
297
$ 13,501
$ 12,191
January 1 to June 30, 2023
January 1 to June 30, 2022

Depreciation
$ 12,855
7,042
5,836
1,798
$ 27,531

Depreciation
$ 12,496
5,118
4,207
890
$ 22,711
  1. For the six months ended June 30, 2023, and 2022, the increase (decrease) in right-of-use assets were $26,533 and ($6,803), respectively.

29

  1. The information on profit or loss items related to lease contracts is as follows:
April 1 to June 30, 2023
Items affecting current profit and loss
Interest expenses on lease liabilities
$ 2,165
Expenses for short-term lease
contracts
673
Lease of low-value assets
1,368
January 1 to June 30,
2023
Items affecting current profit and loss
Interest expenses on lease liabilities
$ 4,016
Expenses for short-term lease
contracts
1,346
Lease of low-value assets
2,702		 April 1 to June 30, 2023
April 1 to June 30, 2022


$ 1,702
-
97
January 1 to June 30,
2022
$ 3,507
526
173

Interest expenses on lease liabilities
Expenses for short-term lease
contracts
Lease of low-value assets
Items affecting current profit and loss

Interest expenses on lease liabilities
Expenses for short-term lease
contracts
Lease of low-value assets

  1. For the six months ended June 30, 2023, and 2022, the Group’s total cash outflow for leases were $20,486 and $24,208, respectively.

  2. Options to extend or terminate leases

In determining lease terms, the 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 Group leases out assets such as 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 $5,135 and $3,380, and $10,318 and $9,673 based on operating lease contracts in the period between April 1 and June 30 of 2023 and 2022 and January 1 and June 30 of 2023 and 2022, 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:

2022
2023
2024		 June 30, 2023
$ -
6,269
524		 December 31, 2022
$ -
14,476

786

$ 15,262		 June 30, 2022
$ 7,318
4,793
-
$ 6,793 $ 12,111

30

(X) Real estate investment

January 1, 2023
Cost
Accumulated depreciation
2023
January 1
Reclassification for the period -- Cost
Reclassification for the period -- Accumulated depreciation
Depreciation
June 30
June 30, 2023
Cost
Accumulated depreciation
January 1, 2022
Cost
Accumulated depreciation
2022
January 1
Depreciation
June 30
June 30, 2022
Cost
Accumulated depreciation		 Buildings and
structures
$ 184,105
( 13,759)
$ 170,346
$ 170,346
6,234
( 2,720)
( 1,665)
$ 172,195
$ 190,339
( 18,144)
$ 172,195
Buildings and
structures
$ 184,105
( 10,491)
$ 173,614
$ 173,614
( 1,634)
$ 171,980
$ 184,105
( 12,125)
$ 171,980

31

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
Rental income from investment
property
Direct operating expenses incurred by
investment properties that generate
rent income in the period		 April 1 to June 30, 2023 April 1 to June 30, 2022

$ 4,295

$ 511
$ 2,929

$ 646
January 1 to June 30,
2023
$ 8,530

$ 1,303		 January 1 to June 30,
2022
$ 6,996
$ 1,290

32

  1. The fair value of investment property held by the Group as of June 30, 2023, December 31, 2022 and June 30, 2022 were $123,761, $165,392 and $128,463, respectively, which were measured using income approach and were classified as Level 3 fair value with the following key assumptions:
Discount rate
Annual rent (net income)
Number of years		 June 30, 2023
4.76%~6.21%
$ 8,908
45~50		 December 31,
2022
7.09%
$ 11,285
45~50		 June 30, 2022
3.82%
$ 17,359
2~20

  1. For the six months ended June 30, 2023, and 2022, no interest was capitalized.

  2. As of June 30, 2023, December 31, 2022 and June 30, 2022, the investment property was pledged as collaterals, please refer to Note 8.

(XI) Intangible assets

January 1
Cost
Accumulated
amortization and
impairments
January 1
Consolidated transfer
in
Add - Cost
Reclassification
Amortization expense
June 30
June 30
Cost
Accumulated
amortization and
impairments		 2023
Trademark and
concession
Computer
software
$272,017
$114,747
( 47,408)
( 64,846)
$224,609
$ 49,901
$224,609
$ 49,901
-
-
-
26,786
5,387
( 6,830)
( 14,243)
( 10,709)
$215,753
$ 59,148
$280,614
$130,417
( 64,861)
( 71,269)
$215,753
$ 59,148		 Patents
$ 9,592
( 7,696)
$ 1,896
$ 1,896
-
-
1,443
( 226)
$ 3,113
$ 9,571
( 6,458)
$ 3,113		 Goodwill
$220,774
-
$220,774
$220,774
241,294
-
-
-
$462,068
$462,068
-
$462,068		 Total
$617,130
( 119,950)
$497,180
$497,180
241,294
26,786
-
( 25,178)
$740,082
$882,670
( 142,588)
$740,082
concession
$272,017
( 47,408)
$224,609
$224,609
-
-
5,387
( 14,243)
$215,753
$280,614
( 64,861)
$215,753

33

2022
Trademark
and
concession		 Computer
software		 Patents Goodwill Total
January 1
Cost $272,017 $ 68,980 $ 9,592 $220,774 $571,363
Accumulated
amortization and
impairments ( 9,506) ( 59,318) ( 5,735) - ( 74,559)
$262,511 $ 9,662 $ 3,857 $220,774 $496,804
January 1 $262,511 $ 9,662 $ 3,857 $220,774 $496,804
Addition - From
separate acquisition
Acquisition - 4,817 - - 4,817
Amortization expense ( 17,071) ( 2,971) ( 264) - ( 20,306)
June 30 $245,440 $ 11,508 $ 3,593 $220,774 $481,315
June 30
Cost $272,017 $ 73,797 $ 9,592 $220,774 $576,180
Accumulated
amortization and
impairments ( 26,577) ( 62,289) ( 5,999) - ( 94,865)
$245,440 $ 11,508 $ 3,593 $220,774 $481,315

Due to business mergers, as detailed in Note 6(31), the Group's goodwill increased by $241,294 for the six months ended June 30, 2023.

(XII) Other Non-Current Assets

Prepayments for equipment
Refundable deposit
Others
Total		 June 30, 2023
$ 979,804
75,943
1,507
$ 1,057,254		 December 31,
2022
$ 1,293,001
52,758
3,378
$ 1,349,137		 June 30, 2022
$ 1,078,550
25,265
5,186

$ 1,109,001

34

(XIII) Short Term Loans

Type of borrowings Range of
June 30, 2023 interest rate Collateral
Bank borrowings
Credit loan $ 1,698,746 1.935%~4.09% None
Secured 3,651,341 1.20%~4.711% Certificates of deposit, reserve
borrowings accounts, stocks of listed and
OTC companies and treasury
stock
.
$ 5,350,087
Type of borrowings December 31, Range of
2022 interest rate Collateral
Bank borrowings
Credit loan $ 1,618,197 1.06%~2.675% None
Secured 3,006,328 1.25%~2.75% Certificates of deposit, reserve
borrowings accounts, stocks of listed and
OTC companies, treasury stock
and investment properties.
-
$ 4,624,525
Type of borrowings
Bank borrowings		 June 30, 2022 Range of interest rate
Collateral
Credit loan $ 3,376,732 1.00%~2.81% None
Secured borrowings 2,985,285 1.04%~4.00% Certificates of deposit,
reserve accounts, stocks of
listed and OTC companies,
treasury stock and
investment properties.
-
$ 6,362,017

For the period between April 1 and June 30, 2023 and 2022 and January 1 and June 30, 2023 and 2022, the interest expenses recognized in profit and loss were $32,353 and $8,193, and $59,754 and $15,709, respectively.

35

(XIV) Other Payables

Payable on machinery and
equipment
Dividends payable
Remunerations payable to
employees and directors
Payroll and bonus payable
Machine maintenance payable
Others		 June 30, 2023
$ 757,797
622,462
200,393
134,200
67,932
419,081
$ 2,201,865		 December 31,
2022
$ 111,919
-
129,630
111,894
51,362
432,408
$ 837,213		 June 30, 2022
$ 111,549
482,378
194,035
78,949
35,651
393,974
$ 1,296,536

(XV) Corporate bonds payable

June 30, 2023
Corporate bonds payable
$ 3,000,000
Less: Amount of exercised
conversion options
( 324,400)
Less: Discount on corporate
bonds payable
( 57,520)
2,618,080
Less: Corporate bonds matured in
one year or a business cycle or
have the put option exercised
-
$ 2,618,080		 December 31,
2022
$ 3,000,000
( 324,400)
( 66,556)
2,609,044
-
$ 2,609,044		 June 30, 2022
$ 2,000,000
( 258,700)
( 75,262)
1,666,038
-
$ 1,666,038

  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

36

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 June 30, 2023, the conversion price was NT$85 per share.

  • (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.

  • (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.

  • (6) As of June 30, 2023, a total of $324,400 in face value had been converted into 3,733 thousand shares of common stock.

  • 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%.

  • First series domestic secured 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 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 the 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:

37

  • (1) Total amount of issuance: According to the different issue conditions, there are two types of bonds, A and B, of which A is issued with an amount of $200,000, and B is issued with an amount of $300,000, 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 the performance of corporate bonds signed by major banks.

  • (XVI) Long term borrowings

Type of borrowings
Long-term bank borrowings
Secured borrowings
Secured borrowings
Secured borrowings
Secured borrowings
Secured borrowings
Other long-term borrowings
Secured borrowings
Secured borrowings		 Borrowing period and
payment method

From December 28, 2021
to January 28, 2027,
repayable in portions and
in installments during the
term specified in the
agreement
Repayable in portions and
in installments during the
term specified in the
agreement from June 15,
2020 to December 9, 2027
Repayable in portions and
in installments during the
term specified in the
agreement from June 27,
2018 to December 25,
2026
From December 28, 2022
to December 27, 2032,
repayable in portions and
in installments during the
term specified in the
agreement
From January 24, 2022 to
January 24, 2027, monthly
interest payments with
principle and interest

Repayment of principal
and interest in monthly
installments from January
22, 2023 to December 22,
2025
Repayable in portions and
in installments during the		 Range of
interest rate
2.550%
2.225%~
2.595%
2.150%~
3.250%
2.195%

1.500%~
2.875%
4.750%
3.580%		 Collateral
Buildings and
structures,
machinery
equipment and
investment
property
Buildings and
structures
Machinery and
equipment
Buildings and
structures and
investment
properties
None (responsible
person’s
guarantee)
Plant and land
Machinery and
equipment		 June 30, 2023
$ 1,000,000
236,761
810,294
1,060,000
7,289
15,327
560,000

38

term specified in the
agreement from May 22,
2023 to May 31, 2027
Secured borrowings
From June 10, 2022 to June
28, 2028, with interest paid
monthly
3.525%~6.482% Machine and
equipment, land,
buildings and
structures
Secured borrowings
Repayment of principal
and interest in monthly
installments from October
29, 2021 to September 16,
2028
4.220%
Machinery and
equipment
Secured borrowings
Repayment of principal
and interest in monthly
installments from March
25, 2022 to July 29, 2027
2.450%~8.201% Machinery and
equipment
Credit loan
From June 28, 2023 to June
28, 2025, with interest paid
monthly
4.060%
None
Credit loan
December 30, 2021 to
April 30, 2024, the interest
is paid together with the
principal.
7.613%
None
Credit loan
June 5, 2023 to December
5, 2024, the interest is paid
together with the principal.
6.312%
None
Credit loan
June 6, 2023 to June 6,
2025, the interest is paid
together with the principal.
6.579%
None
Less: Long-term borrowings due within one year or one business cycle)		 364,386
72,570
99,666
20,000
9,860
20,700
10,555
-
4,287,408
( 783,443)
$ 3,503,965

39

Type of borrowings
Borrowing period and		 Range of December 31, December 31, December 31,
payment method interest rate
Collateral		 2022
Long-term bank borrowings
Secured From December 28, 2021 to 2.425% Buildings and $ 1,250,000
borrowings January 28, 2027, repayable structures and machine
in portions and in installments and equipment
during the term specified in
the agreement
Secured From December 27, 2021 to 2.410% Buildings and 250,000
borrowings December 27, 2024, structures
repayable in portions and in
installments during the term
specified in the agreement
Secured Repayable in portions and in 1.730%~ Machinery and 1,050,407
borrowings installments during the term 3.125% equipment
specified in the agreement
from June 12, 2018 to
December 15, 2026
Secured From December 28, 2022 to 2.070% Buildings and 850,000
borrowings December 27, 2032, structures and
repayable in portions and in investment properties
installments during the term
specified in the agreement
Secured From January 24, 2022 to 1.500%~ None (responsible 8,247
borrowings January 24, 2027, monthly 2.875% person’s guarantee)
interest payments with
principle and interest
Other long-term borrowings
Secured Principal is amortized from 3.970% Machinery and 89,655
borrowings October 29, 2021 to equipment
September 16, 2027
Secured Repayment of principal and 2.450%~ Machinery and 90,068
borrowings interest in monthly 8.201% equipment
installments from March 25,
2021 to July 29, 2027
Credit loan December 30, 2021 to April 7.613% None 14,240
30, 2024, the interest is paid
together with the principal.
Secured Repayment of principal and 4.250% Machinery and 176,830
borrowings interest in monthly equipment
installments from July 10,
2022 to June 10, 2027
-
3,779,447
Less: Long-term borrowings due within one year or one
business cycle) ( 611,473)
$ 3,167,974

40

Type of borrowings Borrowing period and Range of
payment method interest rate
Collateral		 June 30, 2022
Long-term bank borrowings
Secured borrowings Repaid in instalments and 1.800%~ Buildings and $ 1,250,000
different amounts according 2.175% structures, machinery
to the agreed period between equipment and
December 28, 2021 and investment property
January 28, 2027.
Secured borrowings Repaid in instalments and 1.580%~ Buildings and 250,000
different amounts according 1.930% structures
to the agreed period between
December 27, 2021 and
December 27, 2024.
Secured borrowings Repaid in instalments and 1.300%~ Machinery and 270,000
different amounts according 1.675% equipment
to the agreed period between
December 27, 2021 and
December 15, 2026.
Secured borrowings Repayable in portions and in 1.040%~ Buildings and 850,000
installments during the term 1.350% structures and
specified in the agreement investment properties
from November 9, 2020 and
November 9, 2023
Secured borrowings Repayable in portions and in 1.500%~ Machinery and Reserve 205,686
installments during the term 3.730% account
specified in the agreement
from September 27, 2017 and
December 29, 2026
-
2,825,686
Less: Long-term borrowings due within one year or one business ( 82,729
cycle) )
$ 2,742,957

Note: According to the loan contract provisions of some banks, subsidiaries of the Group shall maintain a specific amount of capital or shareholder equity within one year from the date of loan.

41

(XVII) 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 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. (2) For the periods between April 1 and June 30 of 2023 and 2022, and January 1 and June 30 of 2023 and 2022, the pension costs recognized by the Corporate Group in accordance with the abovementioned pension measures were $534 and $0 and $1,067 and $0, respectively.

  3. (3) The expected contributions to the defined benefit pension plans of the Group for the year ending December 31, 2024 are $2,133.

  4. (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 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.

  5. (2) For the periods between April 1 and June 30 of 2023 and 2022, and January 1 and June 30 of 2023 and 2022, the pension costs recognized by the Corporate Group in accordance with the abovementioned pension measures were $12,428 and $8,683 and $24,820 and $16,813, respectively.

42

(XVIII) Capital

  1. As of June 30, 2023, 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:

Unit: Thousand shares

Unit: Thousand shares
2023
January 1
205,230
Treasury Stock Buyback
-
Subsidiaries donated treasury stock 400
Treasury stocks transfer to
employees
7,023
June 30
212,653		 2022
214,107
( 8,864)
350
-
205,593

2. Treasury stock

  • (1) Reasons for repurchase of shares and changes in the quantity:
Company
name of the		 Reasons for buyback
Subsidiary holds the company's
stock
Transfer shares to employees
Reasons for buyback
Subsidiary holds the company's
stock
Transfer shares to employees		 June 30, 2023
Number of shares
(thousand)
36,331
7,462
43,793
December 31, 2022
Number of shares
(thousand)
36,731
14,485
51,216		 Book value
$ 517,006
664,593
$1,181,599
Book value
$ 522,698
1,256,281
$1,778,979
shareholding
Subsidiary -
Youe
Chung
Capital
Corporation
The
Company
Company
name of the
shareholding
Subsidiary -
Youe
Chung
Capital
Corporation
The
Company

43

Company
name of the		 Reasons for buyback
Subsidiary holds the company's
stock
Transfer shares to employees		 June 30, 2022
Number of shares
(thousand)
36,731
13,349
50,080		 Book value
$ 522,698
1,180,823
$1,703,521
shareholding
Subsidiary -
Youe
Chung
Capital
Corporation
The
Company
  • (2) For the six months ended June 30, 2023, and 2022, the Group's share-based payment arrangements were as follows:
Type of arrangement
Transfer of treasury stocks
to employees
Transfer of treasury stocks
to employees		 Grant date
2022.01.26
2023.04.19		 Quantity
granted
4,485
10,000		 Contract
Period
Immediate
vesting
Immediate
vesting		 Vesting
conditions
Note
Note

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

  • (3) For the six months ended June 30, 2023, and 2022, the Group incurred compensation costs of $0 and $19,061, respectively, related to the transfer of treasury stocks.

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

  • (5) The treasury stocks 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 a 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 June 30, 2023, December 31, 2022 and June 30, 2022, Youe Chung Capital Corporation held 36,331 thousand shares, 36,731 thousand shares, and 36,731 thousand shares of the Company, with an average book value of $14.23 per share, and

44

a fair value of $83.1, $84.7, and $72.9 per share, 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 ownership ratio during each period.

  • (8) On November 3, 2021, the Board of Directors resolved to purchase 6,000 thousand shares of the Company's stock in the centralized trading market and transfer them to employees. This amount represented 2.37% of the total number of issued shares of the Company. The repurchase of 4,485 thousand shares was completed between November 4, 2021 and January 3, 2022. On January 21, 2022, the Board of Directors approved the transfer of 4,485 thousand shares to employees.

  • (9) On May 6, 2022, the Board of Directors resolved to purchase 10,000 thousand shares of the Company's stock in the centralized trading market and transfer them to employees. This amount represented 3.91% of the total number of issued shares of the Company. The repurchase of 10,000 thousand shares was completed between May 9, 2022 and July 8, 2022. On April 14, 2023, the Board of Directors approved the transfer of 10,000 thousand shares to employees, of which 7,023 shares were transferred to employees in June 2023.

(XIX) 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:

Issue
premiums
January 1, 2023
$96,650
Distribution of cash
from capital surplus
( 49,797)
Changes in shares of
affiliates recognized
under the equity
method
-
Payment of overdue
unclaimed dividends
to shareholders
-
June 30, 2023
$46,853		 Trading of treasury
stock
$768,509
-
-
-
$768,509		 Changes in
Equity changes in
affiliates
stock option
$295,848
$ 68,427
-
-
-
8
-
-
$295,848
$ 68,435		 Others
$4,459
-
-
( 71)
$4,388		 Total
$1,251,681
( 49,797)
8
( 71)
$1,201,821

ownership
interests in
subsidiaries
recognized

$ 17,788
-
-
-

$295,848
-
-
-
$295,848
$ 17,788

45

Issue
premiums
January 1, 2022
$269,010
Distribution of
cash from capital
surplus
(241,189)
Changes in
ownership interests
in subsidiaries
recognized
-
Changes in shares
of affiliates
recognized under
the equity method
-
Share-based
payment
transaction
-
-
June 30, 2022
$27,821		 Trading of treasury
stock
$695,046
-
-
-
-
-
$695,046		 Changes in

stock
option
$295,074
-
-
-
14,131
-		 Equity changes in
affiliates
$ 47,320
-
-
21,107
-
-

$ 68,427		 Others Total
$1,315,828
( 241,189)
7,189
21,107
16,831
-

ownership

interests in
subsidiaries
recognized

$ 4,919
-
7,189
-
2,700
-		 $4,459
-
-
-
-
-
$ 14,808
$309,205		 $4,459
$1,119,766

46

(XX) 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.

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

  5. (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).

  6. (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.

  7. 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.

  8. 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.

  9. The Company's board of directors resolved on May 24, 2023 to distribute a cash dividend of NT$2.30 per ordinary share from the 2022 surplus with a total dividend of $556,511. NT$0.20 per share is to be distributed from the capital surplus, with a total of $48,392. In addition, as the Company implemented the transfer of 7,023 thousand shares of treasury stock to employees, which changed the number of outstanding shares to 248,984 thousand shares, so the cash dividend was adjusted to $572,665 to be distributed from the capital surplus of $49,797.

  10. 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 repurchase of 14,485 thousand shares of treasury stock, 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.

47

(XXI) Other equity interests

2023
Unrealized gains and
Foreign currency
losses translation Total
January 1 ($ 2,666) $ 13,174 $ 10,508
Difference in foreign
currency translation:
- Group - ( 13,323) ( 13,323)
June 30 ($ 2,666) ($ 149) ($ 2,815)
2022
Unrealized gains and Foreign currency
losses translation Total
January 1 ($ 2,666) $ 6,698 $ 4,032
Difference in foreign
currency translation:
- Group - 9,049 9,049
June 30 ($ 2,666) $ 15,747 $ 13,081
perating income
April 1 to June 30, 2023 April 1 to June 30, 2022
Revenue from contracts with $ 1,799,891 $ 1,994,321
customers
January 1 to June 30, 2023 January 1 to June 30, 2022
Revenue from contracts with $ 3,363,481 $ 3,701,813
customers

(XXII) Operating income

1. Segmentation of revenue from contracts with customers

The Group's corporate 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:

April 1 to June 30, 2023
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
$ 1,781,002
$ 1,706,121
74,881
$ 1,781,002		 Medical segment
$ 18,889
$ 18,889
-
$ 18,889		 Total
$ 1,799,891
$ 1,725,010
74,881
$ 1,799,891

48

April 1 to June 30, 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
January 1 to June 30, 2023
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
January 1 to June 30, 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		 Photomask and
semiconductor
segment
$ 1,982,931
$ 1,795,170
187,761
$ 1,982,931
Photomask and
semiconductor
segment
$ 3,322,796
$ 3,085,520
237,276
$ 3,322,796
Photomask and
semiconductor
segment
$ 3,681,374
$ 3,213,661
467,713
$ 3,681,374		 Medical segment
$ 11,390
$ 11,390
-
$ 11,390
Medical segment
$ 40,685
$ 40,685
-
$ 40,685
Medical segment
$ 20,439
$ 20,439
-
$ 20,439		 Total
$ 1,994,321
$ 1,806,560
187,761
$ 1,994,321
Total
$ 3,363,481
$ 3,126,205
237,276
$ 3,363,481
Total
$ 3,701,813
$ 3,234,100
467,713
$ 3,701,813

2. Contract Asset and Contract Liability

  • (1) The Group has recognized the following revenue-related contract assets and contract liabilities:
Contract Assets
Contract Liabilities		 June 30, 2023 December 31, June 30, 2022 January 1, 2022


2022
$ 140,231
$ 232,778

$ 98,956
$ 189,749
$ 141,144
$ 343,655
$ 155,763
$ 179,315
  • (2) Contract liabilities at the beginning of the period recognized as revenue of the period:

49

Opening balance of
contract liabilities
recognized in the current
period
Opening balance of
contract liabilities
recognized in the current
period
(XXIII)
Interest income
Interest from bank deposits
Interest income from financial
assets measured at amortized cost
Other interest incomes
Interest from bank deposits
Interest income from financial
assets measured at amortized cost
Other interest incomes
(XXIV)
Other Incomes
Rental income
Dividend income
Subsidy income
Other income - Others		 April 1 to June 30, 2023
$ 3,175
January 1 to June 30, 2023
$ 229,572
April 1 to June 30, 2023
$ 8,787
1,968
212
$ 10,967
January 1 to June 30, 2023
$ 16,538
3,946
249
$ 20,733
April 1 to June 30, 2023
5,135
94,064
5,341
5,219
$ 109,759		 April 1 to June 30, 2022
$ 148,390
January 1 to June 30, 2022

$ 155,666
April 1 to June 30, 2022
$ 1,883
35
-
$ 1,918
January 1 to June 30, 2022

$ 3,619
66
-
$ 3,685
April 1 to June 30, 2022
$ 3,380
148,098
-
17,058
$ 168,536

50

Rental income
Dividend income
Subsidy income
Other income - Others		 January 1 to June 30, 2023
$ 10,318
94,064
5,341
10,280
$ 120,003		 January 1 to June 30, 2022

$ 9,673
148,098
-
23,035
$ 180,806

(XXV) Other Gains and Losses

Disposal of interests in property,
plant and equipment
Gain (loss) on disposal of
investments
Gains on foreign exchange
Loss on financial assets and
liabilities measured at fair value
through profit or loss
Other losses -- Depreciation of
investment properties
Other Gains and Losses
Disposal of interests in property,
plant and equipment
Gain (loss) on disposal of
investment
Gains on foreign exchange
Loss on financial assets and
liabilities measured at fair value
through profit or loss
Other losses -- Depreciation of
investment properties
Other Gains and Losses		 April 1 to June 30, 2023
April 1 to June 30, 2022

$ 344
$ -
36,938
58,928
21,411
24,699
( 117,913)
( 859,330)
( 847)
( 817)
2,867
( 16,983)
($ 57,200)
($ 793,503)
January 1 to June 30, 2023
January 1 to June 30, 2022		 April 1 to June 30, 2023
April 1 to June 30, 2022

$ 344
$ -
36,938
58,928
21,411
24,699
( 117,913)
( 859,330)
( 847)
( 817)
2,867
( 16,983)
($ 57,200)
($ 793,503)
January 1 to June 30, 2023
January 1 to June 30, 2022


$ 401
101,102
15,029
( 93,855)
( 1,665)
191
$ 21,203

$ 5,942
( 48,908)
53,331
( 1,272,501)
( 1,634)
( 17,324)
($ 1,281,094)

51

(XXVI) Financial Costs

Interest Expenses:
Bank borrowings
Convertible bonds
Lease liabilities
Interest Expenses:
Bank borrowings
Convertible bonds
Lease liabilities		 April 1 to June 30, 2023
April 1 to June 30, 2022
$ 66,098
$ 35,235
4,523
4,501
2,165
1,702
$ 72,786
$ 41,438
January 1 to June 30, 2023
January 1 to June 30, 2022		 April 1 to June 30, 2023
April 1 to June 30, 2022
$ 66,098
$ 35,235
4,523
4,501
2,165
1,702
$ 72,786
$ 41,438
January 1 to June 30, 2023
January 1 to June 30, 2022

$ 117,076
9,036
4,016
$ 130,128

$ 63,680
8,989
3,507
$ 76,176

(XXVII) Expenses by nature

Employee benefits
expenditure
Depreciation
Amortization
Employee benefits
expenditure
Depreciation
Amortization		 April 1 to June 30, 2023
$ 323,584
210,181
13,608
January 1 to June 30, 2023
$ 626,953
409,380
25,178		 April 1 to June 30, 2022
$ 208,909
89,718
16,010
January 1 to June 30, 2022

$ 458,398
223,558
20,306

52

(XXVIII) Employee benefits expenditure

April 1 to June 30, 2023
Payroll expenses
$ 274,682
Share-based payment
-
Labor and health insurance fees 21,826
Pension expense
12,962
Other personnel expenses
14,114
$ 323,584
January 1 to June 30, 2023
Payroll expenses
$ 529,964
Share-based payment
-
Labor and health insurance fees 43,510
Pension expense
25,887
Other personnel expenses
27,592
$ 626,953		 April 1 to June 30, 2022
$ 172,335
-
15,357
8,683
12,534
$ 208,909

January 1 to June 30, 2022


$ 366,922
19,061
32,705
16,813
22,897
$ 458,398

  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 the periods between April 1 and June 30 of 2023 and 2022, and January 1 and June 30 of 2023 and 2022, employees' remuneration was accrued at $30,000 and $0and $60,000 and $0, respectively, and director remunerations were accrued at $4,500 and $0, and $9,000 and $0, respectively. The abovementioned amounts were listed as payroll expenses.

For the six months ended June 30, 2023, the employee remuneration and director remuneration were estimated at 11.61% and 1.74% respectively based on the profit up to the current period; for the six months ended June 30, 2022, the employee remuneration and director remuneration were not estimated due to the loss.

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”.

53

(XXIX) Income tax

1. Income tax expense

Components of income tax expense:

April 1 to June 30, 2023
Current tax:
Current tax on
profits for the year
$ 14,356
Over provision of
prior year's income
tax
64,455
Total current tax
78,811
Deferred income tax:
Origination and
reversal of
temporary
differences
5,972
Total Deferred
Income Tax
5,972
Income Tax Expense $ 84,783
January 1 to June 30, 2023
Current tax:
Current tax on
profits for the year
$ 94,021
Over provision of
prior year's income
tax
64,455
Total current tax
158,476
Deferred income tax:
Origination and
reversal of
temporary
differences
6,815
Total Deferred
Income Tax
6,815
Income Tax Expense $ 165,291		 April 1 to June 30, 2022
$ 75,271
-
75,271
54,238
54,238
$ 129,509
January 1 to June 30, 2022

$ 85,637
-
85,637
48,704
48,704
$ 134,341
  1. The Company’s income tax returns through 2021 have been assessed and approved by the tax authority.

54

(XXX) Earnings (loss) per share

April 1 to June 30, 2023

April 1 to June 30, 2023
0.00%
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
company plus assumed conversion of all dilutive potential
ordinary shares
0.00%
Basic loss per share
Net loss attributable to ordinary shareholders of the parent
0.00%
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
company plus assumed conversion of all dilutive potential
ordinary shares
0.00%
Basic loss per share
Net loss attributable to ordinary shareholders of the parent		 Amount after tax
$100,343
100,343
3,502
-
$103,845
April 1 to June 30, 2022
Amount after tax
($333,098)
January 1 to June 30, 2023		 Weighted average share
outstanding (thousand shares) Earnings per share
Number of shares
outstanding (thousand shares)
(in dollars)
205,498
$ 0.49
205,498
19,713
1,137
226,348
$ 0.46
Weighted average share
outstanding (thousand shares) Loss per share
Number of shares
outstanding (thousand shares)
(in dollars)
211,016
($ 1.58)

Weighted average share
outstanding (thousand shares) Earnings per share
Number of shares
outstanding (thousand shares)
(in dollars)
205,365
$ 1.50
205,365
19,713
1,137
226,215
$ 1.39

Weighted average share
outstanding (thousand shares) Loss per share
Number of shares
outstanding (thousand shares)
(in dollars)
212,700
($ 2.72)

Amount after tax
$308,394
$308,394
6,995
-
$315,389
January 1 to June 30, 2022

Amount after tax
($577,796)

212,700

55

The weighted average number of shares outstanding during the periods between April 1 and June 30 of 2023 and 2022 and January 1 and June 30 of 2023 and 2022 has deducted the number of shares held by the subsidiary company Youe Chung Capital deemed as the Company's treasury stock (the number of shares is based on the Company’s shareholding). Since the periods between April 1 and June 30 of 2022 and January 1 and June 30 of 2022 were at a loss, there was no potential dilutive effect of ordinary shares and the diluted loss per share was equal to the basic loss per share.

(XXXI) Business combination

  1. The Group acquired 58.33% of shares of Pilot Battery Co., Ltd. on March 1, 2023 for $178,500 through a cash capital increase and gained control over Pilot Battery Co.,Ltd.

  2. (1) The fair value of the assets acquired and liabilities assumed from Pilot Battery Co., Ltd. at the date of acquisition and the non-controlling interest as a percentage of the acquiree's identifiable net assets at the date of acquisition were 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
Notes Receivables
Accounts Receivables
Inventories
Prepayments
Other Current Assets
Property, plant and equipment
Deferred Income Tax Assets
Right-of-use Asset
Other Non-Current Assets
Short Term Loans
Contract Liabilities
Notes Payable
Accounts Payable
Lease liabilities
Other Payables
Other Current Liabilities
Long-term borrowings
Deferred Income Tax Liabilities
Total identifiable net assets
Goodwill		 March 1, 2023
$ 178,500
58,775
237,275
189,429
84
2,297
35,488
2,543
1,951
42,954
5,678
3,148
29,081
( 99,154)
( 8,649)
( 3,869)
( 17,157)
( 3,148)
( 7,496)
( 568)
( 31,140)
( 412)
141,060
$ 96,215

56

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

  • (3) The assessment of the fair value of acquired identifiable assets and assumed liabilities is in progress. At present, it is recorded at the initial valuation, and the relevant acquisition price allocation will be completed within one year.

  • (4) Since March 1, 2023, the Group has merged with Pilot Battery Co., Ltd., Pilot Battery Co., Ltd. has contributed operating income and net loss before tax of $9,143 and ($7,846), respectively. If Pilot Battery Co.,Ltd. had been included in the Group since January 1, 2023, the Group's operating income and net income before tax would have been $3,368,549 and $345,012, respectively.

  • The Group acquired 53.33% of shares of Moment Semiconductor, Inc. on March 17, 2023 for $40,000 through a cash capital increase and gained control over Moment Semiconductor, Inc.

  • (1) The fair value of the assets acquired and liabilities assumed from Moment Semiconductor, Inc. at the date of acquisition and the non-controlling interest as a percentage of the acquiree's identifiable net assets at the date of acquisition were 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
Accounts Receivables
Inventories
Prepayments
Property, plant and equipment
Other Non-Current Assets
Contract Liabilities
Notes Payable
Accounts Payable
Other Payables
Other Current Liabilities
Total identifiable net assets
Goodwill		 March 17, 2023
$ 40,000
14,256
54,256
63,085
13,911
33,038
3,098
447
216
( 837)
( 75,851)
( 1,734)
( 24)
( 4,800)
30,549
$ 23,707

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

  • (3) The assessment of the fair value of acquired identifiable assets and assumed liabilities

57

is in progress. At present, it is recorded at the initial valuation, and the relevant acquisition price allocation will be completed within one year.

  • (4) Since March 17, 2023, the Group has merged with Moment Semiconductor, Inc., Moment Semiconductor, Inc. has contributed operating income and net loss before tax of $138,031 and ($11,579), respectively. If Moment Semiconductor, Inc. had been included in the Group since January 1, 2023, the Group's Q2 2023 operating income and net income before tax would have been $3,411,478 and $341,943, respectively.

  • The Group invested $121,372 on May 1, 2023 to acquire 100% equity of One Test Systems and obtain control over One Test Systems.

  • (1) The fair value of the assets acquired and liabilities assumed from One Test Systems at the date of acquisition and the non-controlling interest as a percentage of the acquiree's identifiable net assets at the date of acquisition were 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
Other Payables
Total identifiable net assets
Goodwill		 May 1, 2023
$ 121,372
-
121,372
9,331
( 9,331)
-
$ 121,372

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

  • (3) The assessment of the fair value of acquired identifiable assets and assumed liabilities is in progress. At present, it is recorded at the initial valuation, and the relevant acquisition price allocation will be completed within one year.

  • (4) Since the Group merged with One Test Systems on May 1, 2023, One Test Systems contributed operating revenue and net loss before tax of $0 and ($47), respectively. If One Test Systems had been included in the Group since January 1, 2023, the Group's Q2 2023 operating income and net income before tax would have been $3,363,481 and $353,216, respectively.

58

(XXXII) Supplemental cash flow information

1. Investing activities with partial cash payments:

January 1 to June 30, 2023
Purchase of property, plant and
equipment
$ 2,811,477
Add: Prepayments for
equipment at the end of the
period
979,804
Beginning balance of
payable on equipment
111,919
Less: Prepayments for
equipment at the beginning of
the period
( 1,293,001)
Ending balance of
payable on equipment
( 757,797)
Cash Paid During for the
Period
$ 1,852,402		 January 1 to June 30, 2022

$ 1,254,544
1,078,550
85,822
( 671,105)
( 111,549)
$ 1,636,262

2. Financing activities with no cash flow effects:

Dividends payable January 1 to June 30, 2023
$ 622,462		 January 1 to June 30, 2022

$ 482,378

(XXXIII) Changes in liabilities arising from financing activities

January 1, 2023
Change in cash
flow from
financing
activities
Interest Incomes
Interest Paid
Distribution of
cash
dividends
announced
Other Non-Cash
Transactions
June 30, 2023		 Short Term
Loans
$4,624,525
626,408
-
-
-
99,154
$5,350,087		 Corporate
bonds payable		 Long-term
borrowings
(including
current portion)
Lease
liabilities
$ 3,779,447
$559,669
476,821 ( 12,422)
- 4,016
- ( 4,016)
- -
31,140
25,084
$ 4,287,408
$572,331		 Guarantee
Deposits
Received
$ 34,754
17,151
-
-
-
-
$ 51,905		 Dividends
payable
$ -
-
-
-
622,462
-
$622,462		 Total liabilities
arising from
financing
activities
$11,607,439
1,107,958
13,052
( 4,016)
622,462
155,378
$13,502,273

$2,609,044
-
9,036
-
-
-
$2,618,080
$ 3,779,447
476,821
-
-
-
31,140

$ 4,287,408

59

January 1, 2022
Change in cash
flow from
financing
activities
Interest Incomes
Interest Paid
Distribution of
cash
dividends
announced
Other Non-Cash
Transactions
June 30, 2022		 Short Term
Loans
$4,376,766
1,985,251
-
-
-

-
$6,362,017		 Corporate
bonds payable
$1,657,049
-
8,989
-
-
-
$1,666,038		 Long-term
borrowings
(including
current
portion)
$ 2,722,199
103,487
-
-
-
-		 Lease
liabilities
$655,641
( 20,002)
3,507
( 3,507)
-
( 4,613)
$631,026		 Guarantee
Deposits
Received
$ 6,908
33,270
-
-
-
-
$ 40,178		 Dividends
payable
$ -
-
-
-
482,378
-
$482,378		 Total
liabilities
arising from
financing
activities
$ 9,418,563
2,102,006
12,496
( 3,507)
482,378
( 4,613)
$12,007,323
$ 2,825,686

VII. Related Party Transactions

(I) Related parties' names and relationship

Name of the related parties Relationship with the Group Weida Hi-Tech Co., Ltd. Affiliates Image Match Design Inc. Other related party (Note 1) BKS Tec Corp. Other related party Pilot Battery Co., Ltd. Other related party (Note 2) Taiwan Mask Charity Foundation Other related party

  • Note 1: Image Match Design Inc. re-elected it directors on June 1, 2023. Youe Chung Capital Corporation is no longer a director of the company, and the company is not a related party of the Group.

  • Note 2: In March 2023, the Group acquired 58.33% of the shares of Pilot Battery Co., Ltd. and gained control over the company, which has been included in the consolidated financial statements as a consolidated entity since the acquisition of control.

(II) Significant transactions with the related parties

  1. Operating revenue
Product sales:
Affiliates
Other related party
Total		 April 1 to June 30, 2023
$ 942
293
$ 1,235		 April 1 to June 30, 2022

$ 146
8,491
$ 8,637

60

January 1 to June 30, 2023 January 1 to June 30, 2022

Product sales:
Affiliates
Other related party
Total		 $ 1,336
2,397
$ 3,733		 $ 3,460
22,984
$ 26,444

There are no major abnormalities in the transaction prices and payment terms of the related party compared to that of non-related parties.

  1. Purchase

April 1 to June 30, 2023 April 1 to June 30, 2022 Purchase of merchandise: Other related party $ - $ -

January 1 to June 30, 2023 January 1 to June 30, 2022

Purchase of merchandise: Other related party $ 74 $ -

  1. Account receivable from related parties.
Accounts Receivables:
Affiliates
Other related party
Related-party payables
Accounts payable:
Other related party		 June 30, 2023
$ 989
-
$ 989
June 30, 2023
$-		 December 31,
2022
$ 325
2,021
$ 2,346
December 31,
2022
$ 284		 June 30, 2022
$ 1,133
14,271
$ 15,404
June 30, 2022
$-

4. Related-party payables

5. Acquisition of financial assets

Pilot Battery Co., Ltd. was other related party to the Group. On March 1, 2023, the Group invested $178,500 to acquire 7,000 thousand shares of Pilot Battery Co.,Ltd., a 58.33% shareholding, to gain control and include the company as a consolidated entity in the consolidated financial statements. Please refer to Note 6(31) for details of the business merger transaction.

61

6. Others

(1) Rental income

Other related party
Other related party		 April 1 to June 30, 2023
$ 437
January 1 to June 30, 2023
$ 804		 April 1 to June 30, 2022
$ 175
January 1 to June 30, 2022

$ 350

  • (2) For the six months ended June 30, 2023 and 2022, the Company's subsidiary, Youe Chung Capital Corporation, donated 400,000 and 350,000 shares of the Company's stock, totaling $5,692 and $4,980, respectively, to the Taiwan Mask Charitable Foundation.

  • (3) The Company donated $991 in cash to the Taiwan Mask Charity Foundation between January 1 and June 30, 2023.

(III) Compensation of key management personnel

Salary and short-term employee
benefits
Post-employment benefits
Other long-term employee benefits
Total
Salary and short-term employee
benefits
Post-employment benefits
Other long-term employee benefits
Total		 April 1 to June 30, 2023
April 1 to June 30, 2022

$ 8,159
54
-
$ 8,213
January 1 to June 30,
2023
$ 18,473
108
850
$ 19,431

$ 6,520
-
770
$ 7,290
January 1 to June 30,
2022
$ 11,874
-
850
$ 12,724

62

VIII. Pledged Assets

Assets pledged by the Group as collateral are as follows:

Book value
Assets
June 30, 2023
Demand deposit
(Recognized as
"Financial assets at
amortized cost")
$ 176,357
Time deposit
(Recognized as
"Financial assets at
amortized cost")
579,110
Shares of listed and
OTC company
(recognized as “
Financial Assets at Fair
Value Through Profit or
Loss”)
2,761,405
Shares of the Company
(recognized as "treasury
stock") (Note)
511,569
Buildings and
structures (including
land)
1,188,641
Machinery and
equipment and
equipment under
acceptance
3,475,411
Real estate investment
172,195
Office equipment
1,904
Other equipment
3,853
Intangible assets
33
$ 8,870,478		 December 31,
2022
$ 124,883
490,190
2,682,150
504,454
1,169,267
2,638,893
170,346
2,401
4,470
508
$ 7,787,562		 June 30, 2022
$ 15,338
48,445
3,142,617
453,226
1,810,045
1,277,967
161,408
-
-
-
$ 6,909,046		 Purpose
Long- and short-
term borrowings
Reserve account
Short-term
borrowings and
Cargo Value
Guarantee
Short Term Loans
Short Term Loans
Long-term
borrowings
Long- and short-
term borrowings
Long- and short-
term borrowings
Long- and short-
term borrowings
Long- and short-
term borrowings
Long-term
borrowings

Note: The cost of pledged treasury stocks was $511,569 and its fair value was $2,987,445 as of June 30, 2023.

63

IX. Significant Contingent Liabilities and Unrecognized Contract Commitments

  • (I) Contingencies

None.

  • (II) Commitments

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

Machine maintenance June 30, 2023
$ 67,932		 December 31,
2022
$ 51,362		 June 30, 2022
$ 35,651
  1. Capital expenditures that have been signed but not yet incurred
Property, plant and equipment June 30, 2023
$ 1,703,166		 December 31,
2022
$ 2,065,912		 June 30, 2022
$ 319,475
  1. Lease agreement

Please see Note 6 (8) and (9)

64

X. Losses due to Major Disasters

None.

  • XI. Major Events after Financial Statement Date

None.

XII. Others

  • (I) Capital management

There was no significant change in the reporting period. Please refer to Note 12 in the 2022 consolidated financial statements.

65

(II) Financial instruments

1. Types of financial instrument

June 30, 2023
Financial assets
Financial Assets at Fair Value
Through Profit or Loss
Mandatory financial assets at
fair value through profit or
loss
$ 4,515,083
Financial assets measured at
amortized cost cash and cash
equivalents
$ 1,987,268
Financial assets measured at
amortized cost
758,467
Notes Receivables
96
Accounts receivable (Including
related parties)
1,143,099
Other account receivable
(Including related parties)
121,106
Refundable deposit
75,943
$ 4,085,979
Financial liabilities
Financial Liabilities at Fair Value
Through Profit or Loss
Financial liabilities mandatorily
measured at fair value through
profit or loss
$ 4,692
Financial liabilities measured at
amortized cost
Short Term Loans
$ 5,350,087
Notes Payable
72
Accounts payable (Including
related parties)
428,197
Other accounts payable
(Including related parties)
2,201,865
Corporate bonds payable
2,618,080
Long-term borrowings
(including current portion)
4,287,408
Guarantee Deposits Received
51,905
$14,937,614
Lease liabilities
$ 572,331		 December 31,
2022
$ 4,481,155
$ 1,749,957
668,067
1,361
1,503,358
13,751
52,758
$ 3,989,252
$ 5,697
$ 4,624,525
81
417,459
837,213
2,609,044
3,779,447
34,754
$12,302,523
$ 559,669		 June 30, 2022
$ 4,669,636
$ 2,260,721
88,983
3,783
1,677,430
177,226
25,265
$ 4,233,408
$ 13,408
$ 6,362,017
33,002
483,791
1,296,536
1,666,038
2,825,686
40,178
$12,707,248
$ 631,026

66

  1. Risk management policies

  2. (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.

  3. (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.

  4. Significant financial risks and degrees of financial risks

  5. (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:

June 30, 2023

June 30, 2023
(Foreign currency:
functional currency)
Financial assets
Monetary items
USD : NTD
RMB : NTD
JPY : NTD
Financial liabilities
Monetary items
USD : NTD
JPY : NTD		 Foreign currency (in Exchange
rate
31.140
4.282
0.215
31.140
0.215		 Book value
(NT$ in
thousands)
$ 1,603,840
177,519
22,449
866,284
249,537

thousand)
USD
51,504
CNY
41,457
JPY
104,415
USD
27,819
JPY
1,160,639

67

December 31, 2022

(Foreign currency:
functional currency)
Financial assets
Monetary items
USD : NTD
RMB : NTD
JPY : NTD
Financial liabilities
Monetary items
USD : NTD
JPY : NTD
(Foreign currency:
functional currency)
Financial assets
Monetary items
USD : NTD
RMB : NTD
JPY : NTD
Financial liabilities
Monetary items
USD : NTD
RMB : NTD
JPY : NTD		 Foreign currency (in
Exchange
rate
30.71
4.408
0.232
30.71
0.232

Exchange
rate
29.720
4.439
0.218
29.720
4.439
0.218		 Book value
(NT$ in
thousands)
$ 2,079,436
134,876
11,127
362,470
65,941
Book value
(NT$ in
thousands)
$ 1,390,629
833,733
8,231
617,522
63,722
76,277

thousand)
USD
67,712
CNY
30,598
JPY
47,877
USD
11,803
JPY
283,739
June 30, 2022
Foreign currency (in

thousand)
USD
46,791
CNY
187,820
JPY
37,755
USD
20,778
CNY
14,355
JPY
349,895

68

  • B. Total exchange gains (losses), including realized and unrealized gains from significant foreign exchange variations on monetary items held by the Group amounted to $21,411 and $24,699 for the periods between April 1 and June 30, 2023 and 2022 and $15,029 and $53,331 for the periods between January 1 and June 30, 2023 and 2022, 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
JPY : NTD		 January 1 to June 30, 2023
Sensitivity Analysis
Fluctuation
Effect on profit
or loss
Other comprehensive
profit and loss affected
1%
$ 16,038
$ -
1%
1,775
-
1%
224
-
1%
( 8,663)
-
1%
( 2,495)
-		 January 1 to June 30, 2023
Sensitivity Analysis
Fluctuation
Effect on profit
or loss
Other comprehensive
profit and loss affected
1%
$ 16,038
$ -
1%
1,775
-
1%
224
-
1%
( 8,663)
-
1%
( 2,495)
-		 January 1 to June 30, 2023
Sensitivity Analysis
Fluctuation
Effect on profit
or loss
Other comprehensive
profit and loss affected
1%
$ 16,038
$ -
1%
1,775
-
1%
224
-
1%
( 8,663)
-
1%
( 2,495)
-

Fluctuation
1%
1%
1%
1%
1%

or loss
$ 16,038
1,775
224
( 8,663)
( 2,495)

profit and loss affected

$ -
-
-
-
-


(Foreign currency:
functional currency)
Financial assets
Monetary items
USD : NTD
RMB : NTD
JPY : NTD
Financial liabilities
Monetary items
USD : NTD
RMB : NTD
JPY : NTD		 January 1 to June 30, 2022
Sensitivity Analysis
Fluctuation
Effect on profit
or loss
Other comprehensive
profit and loss affected
1%
$ 13,906
$ -
1%
8,337
-
1%
82
-
1%
( 6,175)
-
1%
( 637)
-
1%
( 763)
-		 January 1 to June 30, 2022
Sensitivity Analysis
Fluctuation
Effect on profit
or loss
Other comprehensive
profit and loss affected
1%
$ 13,906
$ -
1%
8,337
-
1%
82
-
1%
( 6,175)
-
1%
( 637)
-
1%
( 763)
-		 January 1 to June 30, 2022
Sensitivity Analysis
Fluctuation
Effect on profit
or loss
Other comprehensive
profit and loss affected
1%
$ 13,906
$ -
1%
8,337
-
1%
82
-
1%
( 6,175)
-
1%
( 637)
-
1%
( 763)
-

Fluctuation
1%
1%
1%
1%
1%
1%

or loss
$ 13,906
8,337
82
( 6,175)
( 637)
( 763)

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.

69

  • 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 equity instrument price had increased/decreased by 1% with all other variables held constant, net income after tax from equity instruments at fair value through profit or loss for the six months ended June 30, 2023, and 2022, would have increased/decreased by $18,060 and $18,679, respectively; other comprehensive income classified as equity investment at fair value through other comprehensive income would have both increased/decreased by $0.

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. The Group's borrowings issued at floating interest rates were mainly denominated in New Taiwan dollars and U.S. dollars for the six months ended June 30 2023, and 2022.

  • 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 borrowing interest rate had increased/decreased by 0.25% with all other variables held constant, net income after tax for the six months ended June 30, 2023, and 2022, would have increased/decreased by $9,637 and $9,188, respectively due to the change in interest expenses as a result of borrowings with floating interest rates.

  • (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 at fair value through profit or loss.

  • 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.

70

  • (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 allowance for losses on accounts receivable are estimated by reference to loss rate based on historical and current information for a specific period, adjusted for the Group’s future considerations. A provision matrix as of June 30, 2023, December 31, 2022 and June 30, 2022 is as follows.

June 30, 2023 Not past due
Up to 30 days
31-90 days		 91-180 days More than 181
days past due		 More than 181
days past due
Total
Expected loss rate 0.01~1% 0.05~1.95% 1.88~5.70% 5.24~18.19% 57.71~100%
Total book value $ 855,817 $183,222 $ 52,190 $ 61,294 $ 18,750 $1,171,273
Loss allowance - - ( 1,853) ( 8,233) ( 18,088) ( 28,174)
Not past due
December 31, 2022		 Up to 30 days
31-90 days		 91-180 days More than 181
days past due		 Total
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
Loss allowance - ( 619) ( 2,267) ( 7,392) ( 10,319) ( 20,597)
June 30, 2022 Not past due
Up to 30 days
31-90 days		 91-180 days More than 181
days past due
Total
Expected loss rate 0.01~1% 0.05~1.95% 1.93~5.89% 5.26~18.78% 57.96~100%
Total book value $1,333,744 $275,432 $ 64,434 $ 2,145 $ 16,316 $1,692,071
Loss allowance - ( 69) ( 3,214) ( 655) ( 10,703) ( 14,641)

71

  • 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
Impact from exchange rate
June 30
January 1
Recognize impairment loss
June 30		 2023 Accounts
Receivables
$ 20,597
7,576
1
$ 28,174

2022 Accounts
Receivables
$ 10,039
4,602
$ 14,641

(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 (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. Money market positions of $2,745,562, $2,417,912 and $2,349,773, respectively, held by the Group as of June 30, 2023, December 31, 2022, and June 30, 2022 are expected to generate immediate cash flows to manage liquidity risks.

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

Floating rate
Short-term credit
limits
Medium to long-term
credit limits
Fixed rate
Short-term credit
limits		 June 30, 2023
$ 1,453,411
550,000
16,640
$ 2,020,051		 December 31,
2022
$ 645,878
60,014
11,045
$ 716,937		 June 30, 2022

$ 511,000
30,000
-
$ 541,000

72

  • 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:

June 30, 2023
Non-derivative financial
liabilities:
Short Term Loans
Notes Payable
Accounts payable (Including
related parties)
Other accounts payable
(Including related parties)
Lease liabilities
Corporate bonds payable
Long-term borrowings
(including current portion)
Guarantee Deposits Received
December 31, 2022
Non-derivative financial
liabilities:
Short Term Loans
Notes Payable
Accounts payable (Including
related parties)
Other accounts payable
(Including related parties)
Lease liabilities
Corporate bonds payable
Long-term borrowings
(including current portion)
Guarantee Deposits Received
June 30, 2022
Non-derivative financial
liabilities:
Short Term Loans
Notes Payable		 Within 1 year
1 to 2 years
$ -
-
-
-
33,854
20,540
1,303,859
51,905

1 to 2 years
$ -
-
-
-
78,734
-
919,483
34,754

1 to 2 years
$ -
-		 2 to 5 years
$ -
-
-
-
91,272
2,737,220
2,007,468
-
2 to 5 years
$ -
-
-
-
224,177
2,696,140
352,448
-
2 to 5 years
$ -
-		 Over 5 years
$ -
-
-
-
455,088
-
423,300
-
Over 5 years
$ -
-
-
-
221,011
-
217,645
-
Over 5 years
$ -
-

$5,406,919
72
428,197
2,201,865
42,480
20,540
859,505
-
Within 1 year

$4,702,123
81
417,459
837,213
38,246
-
680,126
-
Within 1 year

$6,402,331
33,002

73

Accounts Payable 483,791 - -
 -
Other accounts payable
(Including related parties)		 1,296,536 - -
 -
Lease liabilities 425,294 101,673 127,154
 -
Corporate bonds payable - - 1,741,300
 -
Long-term borrowings
(including current portion)		 84,623 805,441 1,859,994
 -
Guarantee Deposits Received - 40,178 -
 -

74

  • (III) Fair value information

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

    • Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. A market is regarded as active where a market in which transactions for the asset or liability take place with 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:

June 30, 2023
Assets
Recurring fair value
measurements
Financial Assets at Fair Value
Through Profit or Loss
Equity securities
Beneficiary certificates
Liabilities
Recurring fair value
measurements
Financial Liabilities at Fair Value
Through Profit or Loss
Convertible bond call/put
options		 Level 1
$4,381,016
500		 Level 2
$77,300

-
$77,300
$-		 Level 3
$56,267
-
$56,267
$ 4,692		 Total
$4,514,583
500
$4,381,516

$-		 $4,515,083
$ 4,692

75

December 31, 2022
Assets
Recurring fair value
measurements
Financial Liabilities at Fair Value
Through Profit or Loss
Equity securities
Beneficiary certificates
Liabilities
Recurring fair value
measurements
Financial Liabilities at Fair Value
Through Profit or Loss
Convertible bond call/put
options
June 30, 2022
Assets
Recurring fair value
measurements
Financial Liabilities at Fair Value
Through Profit or Loss
Equity securities
Beneficiary certificates
Liabilities
Recurring fair value
measurements
Financial Liabilities at Fair Value
Through Profit or Loss
Convertible bond call/put
options		 Level 1

$4,344,484
500		 Level 2
$79,300

-
$79,300
$-
Level 2
$74,600

-
$74,600
$-		 Level 3
$56,871
-
$56,871
$ 5,697
Level 3
$65,579
-
$65,579
$13,408		 Total
$4,480,655
500
$4,481,155
$ 5,697
Total
$4,669,136
500
$4,669,636
$ 13,408
$4,344,984

$-
Level 1

$4,528,957
500
$4,529,457

$-

76

  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:

Shares of listed and OTC company Open-end funds Market price Closing price 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 the fair value of financial instruments and non-financial instruments to reflect counterparty credit risk and the credit quality of the Group, respectively.

  • For the six months ended June 30, 2023 and 2022, there was no transfer between level 1 and level 2.

  • For the six months ended June 30, 2023, and 2022, the following chart is the movement of Level 3:

of Level 3:
January 1, 2023
Recognized in profit or loss of the period
Impact from exchange rate
June 30, 2023
January 1, 2022
Recognized in profit or loss of the period
Acquisition cost of the period
Impact from exchange rate
June 30 2022		 Equity securities
$ 51,174
1,005
( 604)
$ 51,575
Equity securities
$ 57,622
($ 18,408)
12,500
457
$ 52,171

77

  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 Level 3 fair value measurements are explained as follows:

June 30, 2023

June 30, 2023
Fair value
Valuation
technique
Significant
unobservable
inputs
Range
(weighted
average)
Non-derivative
equity/liability
instruments:
Shares of non-
listed and non-
OTC company
$ 56,267
Net asset
value
method
Net asset value
-
Convertible bond
call/put options
( 4,692)
Convertible
bond
evaluation
model
Stock price
volatility
45.51%		 Relationship between

inputs and fair value
The higher the net
asset value, the
higher the fair value
The higher the stock
price volatility, the
higher the fair value

December 31, 2022

December 31, 2022
Non-derivative
equity/liability
instruments:
Shares of non-
listed and non-
OTC company
Convertible bond
call/put options
June 30, 2022
Non-derivative
equity/liability
instruments:
Shares of non-
listed and non-
OTC company
Convertible bond
call/put options		 Fair value
$ 56,871
( 5,697)
Fair value
$ 65,579

( 13,408)		 Valuation Significant
unobservable
inputs
Net asset value
Stock price
volatility
Significant
unobservable
inputs
Net asset value
Stock price
volatility		 Range
(Weighted
average)
-
50.65%
Range
(weighted
average)
-
52.87%		 Relationship
between inputs and
fair value
The higher the net
asset value, the
higher the fair value
The higher the stock
price volatility, the
higher the fair value
Relationship between
technique
Net asset
value
method
Convertible
bond
evaluation
model
Valuation
technique
Net asset
value
method
Convertible
bond
evaluation
model

inputs and fair value
The higher the net
asset value, the
higher the fair value
The higher the stock
price volatility, the
higher the fair value

78

  1. The 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:
Financial
assets
Equity
instruments
Debt
Total
Financial
assets
Equity
instruments
Debt
Total
Financial
assets
Equity
instruments
Equity
instruments
Total		 Inputs
Changes
Net asset
value
± 1%
Stock price
volatility
± 1%
Inputs
Changes
Net asset value ± 1%
Stock price
volatility
± 1%
Inputs
Changes
Net asset value ± 1%
Stock price
volatility
± 1%		 June 30, 2023
Recognized in profit or		 Recognized in other
comprehensive income

loss
Favorable
changes
Adverse
changes
$ 563 ($ 563)
10
( 10)
$ 573
($ 573)
December 31, 2022
Recognized in profit or

Favorable

loss

Favorable
changes
Adverse
changes
$ 569 ($ 569)
20
( 20)
$ 589
($ 589)
June 30, 2022
Recognized in profit or

loss

Favorable
changes
Adverse
changes
$ 656 ($ 656)
10
( 10)
$ 666
($ 666)

Favorable
changes
$ -
-
$-

79

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 III.

  • 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 IV: Not applicable.

  • 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 4.

(II) Information on Reinvested Businesses

Names, locations and other information of investee companies (not including investees in Mainland China): Please refer to Table 5.

(III) Information on investments in Mainland China

  1. Basic information: Please refer to Table 6.

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

(IV) Information on Major Shareholders

Information on major shareholders: Please refer to Table 7.

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 period.

(II) Segments Information

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

January 1 to June 30, 2023:

80

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
$ 3,322,796
($ 158,235)
$ 446,748
($ 399,746)
($ 24,767)
($ 123,478)
$ 20,610
($ 39,491)
$ 19,896,344		 Medical
segment
$ 40,685
$-
($ 99,395)
($ 9,634)
($ 411)
($ 6,650)
$ 123
$-
$ 785,470		 Total
$ 3,363,481
($ 158,235)
$ 347,353
($ 409,380)
($ 25,178)
($ 130,128)
$ 20,733
($ 39,491)
$20,681,814

January 1 to June 30, 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
$ 3,681,374
($ 65,122)
($ 514,746)
$ 212,288
$ 16,045
($ 75,014)
$ 3,680
($ 34,726)
$ 17,011,429		 Medical
segment
$ 20,439
$-
($ 50,350)
($ 11,270)
($ 4,261)
($ 1,162)
$ 5
$-
$ 413,294		 Total
$ 3,701,813
($ 65,122)
($ 565,096)
$ 223,558
$ 20,306
($ 76,176)
$ 3,685
($ 34,726)
$17,424,723

(III) 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 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.

81

Taiwan Mask Corporation and Subsidiaries

Loans to Others

January 1 to June 30, 2023

Table 1

Unit: NT$Thousand

Table 1 Unit: NT$Thousand
No.
(Note 1)
Companythat lent
Borrowing party
General ledger account
Endingbalance
Nature of loan
1
ADL Energy Corp
Aptos Technology INC. Other Receivables - Related
Parties
Y
10,000
$ -
$ -
$ 2.7%
Short-term
financing
2
Miracle Technology
CO
LTD
Aptos Technology INC. Other Receivables - Related
Parties
Y
170,000
170,000
170,000
2.7%
Short-term
financing
3
Youe Chung Capital
Corporation
Aptos Technology INC. Other Receivables - Related
Parties
Y
370,000
270,000
270,000
2.7%
Short-term
financing
3
Youe Chung Capital
Corporation
Xsense Technology Corp Other Receivables - Related
Parties
Y
270,000
270,000
270,000
2.7%
Short-term
financing
3
Youe Chung Capital
Corporation
Innova Vision INC.
Other Receivables - Related
Parties
Y
90,000
90,000
90,000
2.7%
Short-term
financing
4
Pilot Battery Co.,
Ltd
Xsense Technology Corp Other Receivables - Related
Parties
Y
50,000
50,000
50,000
2.7%
Short-term
financing
Relate
d
party?
Maximum
Balance for the
Amount Actually
Drawn
Range of
interest rate		 Amount of
transaction
with
borrower		 Reason for
short-term
financing		 Amount of
recognized
impairment
loss		 Colla teral Limit on loans
granted to a single		 Note
(Unless otherwise specified)
Ceiling on total
loangranted
Name Value
-
-
-
-
-
-		 Business
operations
Working
Capital
Working
Capital
Working
Capital
Working
Capital
Working
Capital		 -

-

-

-

-

-
 Promissory not
Promissory not
Promissory not
Promissory not
Promissory not
Promissory not		 e
10,000
$ e
170,000
e
270,000
e
270,000
e
90,000
e
50,000		 19,166
$ 171,034
1,604,410
1,604,410
1,604,410
56,210		 19,166
$ Note 3
171,034
Note 4
1,604,410
Note 6
1,604,410
Note 6
1,604,410
Note 6
56,210
Note 7

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 the 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 borrower shall not exceed the amount of transactions between the two parties in the most recent year and not exceed 40% of the Company’s 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 loans to a single party shall not exceed 50% of the Company's net v 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 goods purchased or sold between the parties. (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 abovementioned paragraphs. However, the total loan amount, limits for each individual borrower, and the period of loan should be specified. 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 borrower shall not exceed the amount of transactions between the two parties in the most recent year and not exceed 40% of the Company’s 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 loans to a single party shall not exceed 50% of the Company's net v 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 sold between the parties, and shall not exceed 20% of the Company's net value. (3) For companies or businesses that have a short-term financing need, the loan amount of each individual borrower shall not exceed the amount of transactions between the two parties in the most recent year and not exceed 40% of the Company’s 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. Note 7: Subsidiary - Pilot Battery Co.,Ltd. Procedures for Lending Funds to Others:

The Company shall not loan funds to any of its shareholders or any other person except under the following circumstances:

  • (1) Where an inter-company or inter-firm business transaction calls for a loan arrangement.

(2) Where an inter-company or inter-firm short-term financing facility is necessary, provided that such financing amount shall not exceed 40% of the lender's net worth.

82

Taiwan Mask Corporation and Subsidiaries

Endorsements and Guarantees to Others

January 1 to June 30, 2023

Table 2

Unit: NT$Thousand (Unless otherwise specified)

No.
(Note 1)		 Guarantor
Name of Company		 Guaranteed Party Guaranteed Party (Note 3,4,5,6)
endorsement and
guarantee for a		 Maximum Balance
of
Endorsement/Guar		 Ending Balance of
Endorsement/Guar
antee		 Amount
ActuallyDrawn		 Amount of
Endorsement
/Guarantee		 Ratio of
Accumulated
Endorsement/Guaran		 (Note 3,4,5,6)
Endorsement/Guarante
e Amount Allowable		 Guarantee
Provided by
Parent		 Guarantee
Provided by
Subsidiaryto		 Note
Guarantee
Provided by
Name of Company ip
(Note 2)
0
1
2
3
3
4		 Taiwan Mask
Corporation
ADL Energy Corp
Miko-China Enterprise
(Shanghai) Co., Ltd.
Miracle Technology
CO., LTD.
Miracle Technology
CO., LTD.
Pilot Battery Co., Ltd.		 Miracle Technology
CO., LTD.
Aptos Technology
INC.
Miracle Technology
CO., LTD.
Xsense Technology
Corporation (B.V.I.)
Aptos Technology
INC.
ADL Energy Corp		 2
3
3
1
1
1		 229,550
$ 14,374
362,221
171,034
171,034
56,210		 217,980
$ 19,500
226,695
150,000
20,000
30,000		 217,980
$ -
218,382
150,000
20,000
30,000		 -
$ -
218,382
150,000
20,000
30,000		 -
$ -
218,382
150,000
20,000
30,000		 4.53%
0.00%
60.29%
35.08%
4.68%
21.35%		 1,926,738
$ 19,166
362,221
171,034
171,034
56,210		 Y
N
N
N
N
N		 N
Y
Y
N
N
N		 N
Note
3
N
Note
4
N
Note
5
N
Note
6
N
Note
6
N
Note
7

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 the 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 endorsement and guarantee for a single enterprise shall not exceed 10% of the Company's paid-in capital and the company's paid-in capital being endorsed and guaranteed.

  • (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 worth of the Company.

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 subsidiary, more than 50% of the common stock equity of a company, it may endorse up to its net value.

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.

Note 7: Subsidiary - Pilot Battery 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.

83

Taiwan Mask Corporation and Subsidiaries

Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures) June 30, 2023

Table 3

Unit: NT$Thousand (Unless otherwise specified)

Company name of
the shareholding		 Marketable securities Relationship with the marketable
securities issuer		 General ledger account End of period 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)
Co., Ltd.
Common stocks of Shenzhen He Mei Jing Yi
Semiconductor Technology Co., Ltd.		 None
None
None
None
None
Parent company
None
None
None
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 Assets at Fair Value Through Profit or Loss - Non
Current
Financial Assets 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 Assets at Fair Value Through Profit or Loss - Non
Current
Financial Assets at Fair Value Through Profit or Loss - Non
Current
Financial Assets at Fair Value Through Profit or Loss - Non Cu
Financial Assets at Fair Value Through Profit or Loss - Non
Current
Financial Assets at Fair Value Through Profit or Loss - Non
Current
Financial Assets at Fair Value Through Profit or Loss - Non
Current
Financial Assets at Fair Value Through Profit or Loss - Non
Current
Financial Assets at Fair Value Through Profit or Loss - Non
Current
Financial Assets at Fair Value Through Profit or Loss - Non
Current
Financial Assets at Fair Value Through Other Comprehensive
Income - Non Current
Financial Assets at Fair Value Through Profit or Loss -
Current
Financial Assets at Fair Value Through Profit or Loss - Non
Current		 7,554,000
14,334,000
10,000,000
4,680,000
40,966,000
36,331,440
24,999,000
r
12,540,000
1,890,000
1,000,000
250,000
-
1,097,092
187,915
100,000
50,000
400,000		 366,369
$ 817,038
77,300
226,980
968,846
3,019,143
1,424,943
576,840
3,213
10,000
2,500
20,000
-
-
-
500
20,554		 0.06%
7.17%
4.69%
0.04%
19.92%
14.16%
12.50%
19.59%
3.17%
10.00%
-
-
8.08%
3.13%
12.27%
-
0.31%		 366,369
$ 817,038
77,300
226,980
968,846
3,019,143
1,424,943
576,840
3,213
10,000
2,500
20,000
-
-
-
500
20,554

84

Taiwan Mask Corporation and Subsidiaries

Significant inter-company transactions during the reporting periods

January 1 to June 30, 2023

Table 4

Unit: NT$Thousand (Unless otherwise specified)

Table 4 (Unless otherwise specified)
Unit: NT$Thousand
No.
(Note 1)		 Name of the counterparty Counterparty Relationshipwith the Statu s of transaction
General ledger account Amount Transaction terms (Note 3)
Percentage of consolidated total
operating revenues or total assets
0
0
0
0
0
0
0
0
0
0
0
0
0
1
1
1
1
1
1
1
1
2
3
4
4
4		 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.
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		 Miracle Technology CO., LTD.
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
Aptos Technology INC.
Aptos Technology INC.
Xsense Technology Corporation (B.V.I.)
Taiwan Branch
Xsense Technology Corporation (B.V.I.)
Taiwan Branch
Miracle International Enterprise(Shanghai)
Co., Ltd.
Miracle International Enterprise(Shanghai)
Co., Ltd.
Sichuan Miracle Power Technology Co., Ltd.
Aptos Technology INC.
Miracle Technology CO., LTD.
Miko-China Enterprise (Shanghai) Co., Ltd.
Aptos Technology INC.
Aptos Technology INC.
Xsense Technology Corporation (B.V.I.)
Taiwan Branch		 85
1
Other Receivables
18,403
1
Sales
6,219
1
Endorsement and guarantee
217,980
1
Accounts Receivables
2,183
1
Rental income
1,353
1
Sales
6,004
1
Accounts Receivables
2,342
1
Rental income
26,455
1
Other Receivables
31,559
1
Rental income
7,866
1
Other Receivables
12,438
1
Rental income
24,367
1
Other Receivables
16,930
3
Other receivables (loans of
funds)
170,000
3
Interest income
2,276
3
Endorsement and guarantee
150,000
3
Sales
1,476
3
Sales
31,892
3
Accounts Receivables
2,403
3
Sales
2,468
3
Endorsement and guarantee
20,000
3
Endorsement and guarantee
218,382
3
Sales
3,966
3
Other receivables (loans of f
270,000
3
Interest income
3,473
3
Other receivables (loans of
funds)
270,000		 Receipt and payment at an
agreed time
Net 60
Same with other customers
Net 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
Receipt and payment at an
agreed time
Receipt and payment at an
agreed time
Same with other customers
Net 60
Net 30
Net 30
Net 60
Same with other customers
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		 0.09%
0.18%
1.04%
0.01%
0.04%
0.18%
0.01%
0.79%
0.15%
0.23%
0.06%
0.72%
0.08%
0.81%
0.07%
0.07%
0.00%
0.95%
0.01%
0.01%
0.59%
1.04%
0.12%
1.29%
0.10%
1.29%

Taiwan Mask Corporation and Subsidiaries

Significant inter-company transactions during the reporting periods

January 1 to June 30, 2023

Table 4

Unit: NT$Thousand (Unless otherwise specified)

Table 4 (Unless otherwise specified)
Unit: NT$Thousand
No.
(Note 1)		 Name of the counterparty Counterparty Relationshipwith the Statu s of transaction
General ledger account Amount Transaction terms (Note 3)
Percentage of consolidated total
operating revenues or total assets
4
4
4
5
5
6
7
7
8
8
9		 Youe Chung Capital Corporation
Youe Chung Capital Corporation
Youe Chung Capital Corporation
Aptos Technology INC.
Aptos Technology INC.
ADL Energy Corp
Innova Vision INC.
Innova Vision INC.
Pilot Battery Co., Ltd.
Pilot Battery Co., Ltd.
Digital-Can Tech. Co., Ltd.		 Xsense Technology Corporation (B.V.I.)
Taiwan Branch
Innova Vision INC.
Innova Vision INC.
Moment Semiconductor, Inc.
Moment Semiconductor, Inc.
Taiwan Mask Corporation
iPro Vision Inc.
iPro Vision Inc.
Xsense Technology Corporation (B.V.I.)
Taiwan Branch
ADL Energy Corp
Taiwan Mask Corporation		 3
3
3
3
3
3
3
3
3
3
3		 Interest income
Other receivables (loans of
funds)
Interest income
Sales
Accounts Receivables
Sales
Sales
Accounts Receivables
Other receivables (loans of
funds)
Endorsement and guarantee
Sales		 3,600
90,000
1,207
8,714
10,550
9,728
12,332
23,550
50,000
30,000
74,304		 Receipt and payment at an
agreed time
Receipt and payment at an
agreed time
Receipt and payment at an
agreed time
Net 60
Net 60
Net 60
Net 60
Receipt and payment at an
agreed time
Receipt and payment at an
agreed time
Receipt and payment at an
agreed time
Net 60		 0.11%
0.43%
0.04%
0.26%
0.05%
0.28%
0.37%
0.11%
0.24%
0.14%
2.15%

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 to the same transaction, it is not required to disclose twice. For example, if the parent company has already disclosed its transaction with a subsidiary, then the subsidiary is not required to disclose the transaction; 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 transaction amount for the period to consolidated total operating revenues for income statement account.

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.

86

Unit: NT$Thousand

Table 5

Taiwan Mask Corporation and Subsidiaries

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

January 1 to June 30, 2023

(Unless otherwise specified)

Name of Investor Investee Location Main business activities
 Initial invest ment amount Shares hel d at the end of theperiod Profit (loss) of the
investee for the current		 Investment profit (loss)
recognized for the		 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
Youe Chung Capital Corporation
Youe Chung Capital Corporation
Aptos Technology INC.
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 Co., Ltd.
Innova Vision INC.
Advagene Biopharma Co., Ltd.
Xsense Technology Corporation
Xsense Technology Corporation (B.V.I.)
Taiwan Branch
Aptos Technology INC.
Innova Vision INC.
Digital-Can Tech. Co., Ltd.
Pilot Battery Co., Ltd.
Moment Semiconductor, Inc.
ADL Energy Corp
New Sunrise Limited
ONE TEST SYSTEMS
Aptos Global Holding Corp.
Jing Hao Investment Co., Ltd.
Miko Technology Co., Ltd
Innova Technology
Innova Vision (B.V.I) Inc.
iPro Vision Inc.
iPro Vision Inc.		 British Virgin
Islands
Taiwan
Taiwan
Taiwan
Taiwan
Taiwan
Taiwan
British Virgin
Islands
Taiwan
Taiwan
Taiwan
Taiwan
Taiwan
Taiwan
Taiwan
Samoa
United States
Seychelles
Taiwan
Hong Kong
Taiwan
British Virgin
Islands
Japan
Japan		 Re-investment
Re-investment
Medical, R&D, manufacturing
Electronics components
manufacturing, electronics materials
and precision equipment distribution
and power component design
Display panel control chip and other
module’s research, design,
development, manufacturing and sales
Manufacturing, retail, wholesale and
international trade of medical
equipment
Medical, R&D, manufacturing
Precious metal coating
Precious metal coating
Design, packaging and testing of
NAND flash memory, solid state drives
and the related products
Manufacturing, retail, wholesale and
international trade of medical
equipment
3D Printing and Plastic Mold Design
Electronic parts and components and
energy technical services
Retail and wholesale of memory
products
Electronic parts and components and
energy technical services
Re-investment
Research, development and design of
test equipment and related components
Re-investment
Re-investment
Electronics components
manufacturing, electronics materials
and precision equipment distribution
and power component design
Sales of contact lens
Re-investment
Sales of contact lens
Sales of contact lens		 103,045
$ 1,260,000
165,691
252,651
293,371
578,321
60,021
325,965
-
434,692
151,533
139,072
178,500
40,000
413,050
-
121,372
29,795
10,012
37
64,650
60,157
84,204
56,420		 103,045
$ 1,260,000
165,691
252,651
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		 3,120,000
534,877,568
12,549,652
22,955,033
12,176,880
36,793,134
2,616,223
1
12,189,191
28,481,161
94,370
7,281,250
7,000,000
4,000,000
11,984,526
-
940,000
10,000,000
25,860,907
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%
58.33%
53.33%
100%
100%
100%
100%
100%
100%
100%
100%
52.03%
47.97%		 5,855
$ 998,192
21,650
463,695
58,911
60,382
4,513
6,334
29,311)
(
173,664)
(
202
106,591
173,923
33,825
30,792
-
121,324
-
297,202
6,797
3,387)
(
1,586)
(
1,908)
(
1,759)
(		 28
$ 236,154)
(
46,629)
(
13,185
94,434)
(
95,429)
(
46,629)
(
15
41,655)
(
178,390)
(
95,429)
(
8,384)
(
7,846)
(
11,579)
(
17,122)
(
-
47)
(
-
21,912
37)
(
49)
(
1,715)
(
3,509)
(
3,509)
(		 28
$ 148,314)
(
11,859)
(
13,185
25,160)
(
91,041)
(
2,472)
(
15
23,841)
(
84,180)
(
224)
(
7,267)
(
4,577)
(
6,175)
(
17,122)
(
-
47)
(
-
21,912
37)
(
49)
(
1,715)
(
1,826)
(
1,683)
(		 Note 1

Note 1: As of June 30, 2023, the funds for shares have not been remitted.

87

Taiwan Mask Corporation and Subsidiaries

Information on investments in China January 1 to June 30, 2023

Table 6

Unit: NT$Thousand (Unless otherwise specified)

Investee in Mainland China Main business activities Paid-upcapital Investment method
(Note 1)		 Accumulated
amount of
remittance from		 Amount re
Taiwan to		 mitted from
Mainland
Accumulated amount of
remittance from		 Profit (loss) of
the investee for		 Ownership held by the
Company (direct or		 (Note 2)
Investment
income (loss)
recognized by		 Ending
carrying		 Accumulated
amount of		 Note
Remitted to Remitted back
Miko-China Enterprise (Shanghai) Co.,
Ltd.
Miracle International
Enterprise(Shanghai) Co., Ltd.
Sichuan Miracle Power Technology Co.,
Ltd.		 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,
production and sales		 3,283
$ 10,215
53,676		 1
1
3		 3,283
$ 10,215
-		 -
$ -
-		 -
$ -
-		 3,283
$ 10,215
-		 28,087
$ 9,088
131)
(		 100%
100%
100%		 28,087
$ 9,088
131)
(		 362,221
$ 99,788
56,947		 -
$ -
-		 Note 2 (2)
B
Note 2 (2)
B
, Note 4
Note 2 (2)
B

==> picture [275 x 24] intentionally omitted <==

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 Mainland China.

(2) Through investing in an existing company in the third area (please specify the company), which then invested in Mainland 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, it shall be indicated in the box.

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

88

Taiwan Mask Corporation and Subsidiaries Information on Major Shareholders June 30, 2023

Name of Main Shareholders
Youe Chung Capital Corporation
Table 7		 No. of shares held
Ownership
36,331,440
14.16%
Shares

89

More from TMC

Director's Dealing 2026
May 25
Regulatory Filings 2026
May 19
Proxy Solicitation & Information Statement 2026
May 18
Proxy Solicitation & Information Statement 2026
May 18
AGM Information 2026
May 18
Proxy Solicitation & Information Statement 2026
May 18
AGM Information 2026
May 18
Interim / Quarterly Report 2026
May 15
Interim / Quarterly Report 2026
May 15
Interim / Quarterly Report 2026
May 15
View all filings →