Stock Code:1310

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Consolidated Financial Statements

With Independent Auditors’ Review Report for the Three Months Ended March 31, 2023 and 2022

Address: 8F.-1, No.6, Sec.1, Roosevelt Rd., Taipei City Telephone: (02)2396-6007

The independent auditors’ review report and the accompanying consolidated financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors’ review report and consolidated financial statements, the Chinese version shall prevail.

Contents 1. Cover Page 2. Table of Contents 3. Independent Auditors’ Review Report 4. Consolidated Balance Sheets 5. Consolidated Statements of Comprehensive Income 6. Consolidated Statements of Changes in Equity 7. Consolidated Statements of Cash Flows 8. Notes to the Consolidated Financial Statements (1) Company history (2) Approval date and procedures of the consolidated financial statements (3) New standards, amendments and interpretations adopted (4) Summary of significant accounting policies (5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty (6) Explanation of significant accounts (7) Related-party transactions (8) Pledged assets (9) Commitments and contingencies (10) Losses due to major disasters (11) Subsequent events (12) Other (13) Other disclosures (a) Information on significant transactions (b) Information on investees (c) Information on investment in mainland China (d) Major shareholders (14) Segment information	Page
	1 2 3 4 5 6 7 8 8 8 9～10 10 11～36 36 37 37 37 37 37 38～40 40 41 41 42

Contents
1. Cover Page
2. Table of Contents
3. Independent Auditors’ Review Report
4. Consolidated Balance Sheets
5. Consolidated Statements of Comprehensive Income
6. Consolidated Statements of Changes in Equity
7. Consolidated Statements of Cash Flows
8. Notes to the Consolidated Financial Statements
(1)
Company history
(2)
Approval date and procedures of the consolidated financial statements
(3)
New standards, amendments and interpretations adopted
(4)
Summary of significant accounting policies
(5)
Significant accounting assumptions and judgments, and major sources
of estimation uncertainty
(6)
Explanation of significant accounts
(7)
Related-party transactions
(8)
Pledged assets
(9)
Commitments and contingencies
(10) Losses due to major disasters
(11) Subsequent events
(12) Other
(13) Other disclosures
(a) Information on significant transactions
(b) Information on investees
(c) Information on investment in mainland China
(d) Major shareholders
(14) Segment information

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KPMG

台北市110615信義路5段7號68樓(台北101大樓) 電話 Tel + 886 2 8101 6666 68F., TAIPEI 101 TOWER, No. 7, Sec. 5, 傳真 Fax + 886 2 8101 6667 Xinyi Road, Taipei City 110615, Taiwan (R.O.C.) 網址 Web kpmg.com/tw

Independent Auditors’ Review Report

To the Board of Directors of Taiwan Styrene Monomer Corporation:

Introduction

We have reviewed the accompanying consolidated balance sheets of Taiwan Styrene Monomer Corporation and its subsidiaries as of March 31, 2023 and 2022, the related consolidated statements of comprehensive income, changes in equity and cash flows for the three months ended March 31, 2023 and 2022, and notes to the consolidated financial statements, including a summary of significant accounting policies. Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, “ Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews.

Scope of Review

Except as explained in the Basis for Qualified Conclusion paragraph, we conducted our reviews in accordance with the Standard on Review Engagements 2410, “Review of Interim Financial Information Performed by the Independent Auditor of the Entity” of the Republic of China. A review of the consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with the Standards on Auditing of the Republic of China and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Basis for Qualified Conclusion

As stated in note 4(b), the consolidated financial statements included the financial statements of certain nonsignificant subsidiaries, which were not reviewed by independent auditors. These financial statements reflect total assets amounting to $303,438 thousand and $308,597 thousand, constituting 3.38% and 3.35% of consolidated total assets as of March 31, 2023 and 2022, respectively, total liabilities amounting to $3,682 thousand and $4,638 thousand, constituting 0.17% and 0.27% of consolidated total liabilities as of March 31, 2023 and 2022, respectively, and total comprehensive income amounting to $3,438 thousand and $2,031 thousand, constituting 3.89% and 1.71% of consolidated total comprehensive income for the three months ended March 31, 2023 and 2022, respectively.

KPMG, a Taiwan partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.

3-1

Furthermore, as stated in note 6(i), the equity accounted investments of Taiwan Styrene Monomer Corporation and its subsidiaries in its investee companies of $1,243,452 thousand and $1,364,550 thousand as of March 31, 2023 and 2022, respectively, and the related share of profit (loss) of associates and joint ventures accounted for using equity method on these investee companies of $14,726 thousand and $(9,569) thousand for the three months ended March 31, 2023 and 2022, respectively, were recognized solely on the financial statements prepared by these investee companies, but not reviewed by independent auditors.

Qualified Conclusion

Except for the adjustments, if any, as might have been determined to be necessary had the financial statements of certain consolidated subsidiaries and equity accounted investee companies described in the Basis for Qualified Conclusion paragraph above been reviewed by independent auditors, based on our reviews, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of Taiwan Styrene Monomer Corporation and its subsidiaries as of March 31, 2023 and 2022, and of its consolidated financial performance and its consolidated cash flows for the three months ended March 31, 2023 and 2022 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, “ Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

The engagement partners on the reviews resulting in this independent auditors’ review report are Lin Wu and Yung-Sheng Wang.

KPMG

Taipei, Taiwan (Republic of China) May 10, 2023

Notes to Readers

The accompanying consolidated financial statements are intended only to present the consolidated financial position, financial performance and cash flows in accordance with the accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to review such consolidated financial statements are those generally accepted and applied in the Republic of China.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Reviewed only, not audited in accordance with Standards on Auditing as of March 31, 2023 and 2022

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets

March 31, 2023, December 31 and March 31, 2022

(Expressed in Thousands of New Taiwan Dollars)

Assets Current assets: 1100 Cash and cash equivalents (note 6(a)) 1110 Current financial assets at fair value through profit or loss (note 6(b)) 1170 Accounts receivable, net (note 6(c)) 1200 Other receivables 1220 Current tax assets 130X Inventories (note 6(d)) 1410 Prepayments (note 6(e)) 1460 Non-current assets (or disposal groups) held for sale (note 6(f)) 1470 Other current assets 1476 Other current financial assets (notes 6(g) and 8) Total current assets Non-current assets: 1510 Non-current financial assets at fair value through profit or loss (note 6(b)) 1517 Non-current financial assets at fair value through other comprehensive income (note 6(h)) 1550 Investments accounted for using equity method (note 6(i)) 1600 Property, plant and equipment (notes 6(j) and 8) 1755 Right-of-use assets (note 6(k)) 1760 Investment property, net (note 6(l)) 1780 Intangible assets (note 6(m)) 1840 Deferred tax assets 1970 Other long-term investments, net (note 6(n)) 1920 Refundable deposits 1990 Other non-current assets (note 6(o)) Total non-current assets Total assets	March 31, 2023 Amount % $ 428,844 5 277,038 3 1,179,199 13 7,165 - 166 - 468,473 5 295,339 3 - - 12 - 67,706 1 2,723,942 30 8,658 - 944,873 11 1,243,452 14 3,616,295 40 20,433 - 56,583 1 5,756 - 242,148 3 28,870 - 3,848 - 79,164 1 6,250,080 70 $ 8,974,022 100	December 31, 2022 Amount % 765,147 9 223,712 4 975,107 11 2,323 - 12 - 568,790 6 215,534 2 5,474 - 267 - 36,415 - 2,792,781 32 7,576 - 888,543 10 1,195,812 13 3,650,870 41 20,833 - 56,669 1 6,125 - 230,610 3 28,728 - 3,818 - 30,283 - 6,119,867 68 8,912,648 100	March 31, 2022 Amount % 309,853 4 314,095 3 1,319,489 14 13,286 - 5,783 - 377,204 4 161,997 2 - - - - 240,820 3 2,742,527 30 9,740 - 1,010,544 11 1,364,550 15 3,785,980 41 8,591 - 56,929 1 7,224 - 123,028 1 31,715 - 3,513 - 75,440 1 6,477,254 70 9,219,781 100 Liabilities and Equity Current liabilities: 2100 Short-term borrowings (notes 6(p) and 8) 2120 Current financial liabilities at fair value through profit or loss (note 6(b)) 2130 Contract liabilities (note 6(x)) 2170 Accounts payable 2200 Other payables (note 6(q)) 2230 Current tax liabilities 2250 Current provisions 2280 Current lease liabilities (note 6(s)) 2320 Long-term liabilities, current portion (notes 6(r) and 8) 2399 Other current liabilities Total current liabilities Non-Current liabilities: 2540 Long-term borrowings (notes 6(r) and 8) 2570 Deferred tax liabilities 2581 Non-current lease liabilities (note 6(s)) 2640 Net defined benefit liability, non-current 2600 Other non-current liabilities Total non-current liabilities Total liabilities Equity attributable to owners of parent (note 6(v)): 3100 Capital stock 3200 Capital surplus Retained earnings: 3310 Legal reserve 3320 Special reserve 3350 Unappropriated retained earnings 3400 Other equity 3500 Treasury shares Total equity attributable to owners of parent 36XX Non-controlling interests Total equity Total liabilities and equity	March 31, 2023		December 31, 2022		March 31, 2022
				Amount %		Amount %		Amount %
						807,500 9 - - 48,542 - 895,858 10 113,638 1 7,669 - - - 6,393 - 8,307 - 2,718 - 1,890,625 20 60,476 1 175,293 2 13,242 - 50,106 1 660 - 299,777 4 2,190,402 24 5,278,698 59 70,947 1 639,287 7 8,811 - 688,983 8 1,337,081 15 (214,852) (2) - - 6,471,874 73 250,372 3 6,722,246 76 8,912,648 100		317,500 3 - - 36,292 - 888,574 10 105,170 1 33,267 - 349 - 3,067 - 8,301 - 7,040 - 1,399,560 14 66,660 1 174,983 2 5,415 - 64,294 1 692 - 312,044 4 1,711,604 18 5,278,698 57 64,674 1 612,264 7 - - 1,268,820 14 1,881,084 21 28,883 - (13) - 7,253,326 79 254,851 3 7,508,177 82 9,219,781 100

See accompanying notes to financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Reviewed only, not audited in accordance with Standards on Auditing

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

For the three months ended March 31, 2023 and 2022

(Expressed in Thousands of New Taiwan Dollars, Except for Earnings Per Share)

4000 Operating revenue (notes 6(i) and (x)) 5000 Operating costs(notes 6(d), (j), (k), (l), (m), (s), (t) and (z)) Gross profit from operations Operating expenses (notes 6(c), (j), (k), (l), (m), (s), (t) and (z)): 6100 Selling expenses 6200 Administrative expenses 6300 Research and development expenses 6450 Expected credit impairment loss (gain) Operating income (loss) Non-operating income and expenses (notes 6(f), (i), (s) and (y)): 7100 Interest income 7010 Other income 7020 Other gains and losses 7050 Finance costs 7060 Shares of profit (loss) of associates and joint ventures accounted for using equity method 9900 Profit (loss) before tax 7950 Income tax benefits (expense) (note 6(u)) Net income (loss) 8300 Other comprehensive income (loss): 8310 Components of other comprehensive income (loss) that will not be reclassified to profit or loss 8316 Unrealized gains (losses) from investments in equity instruments measured at fair value through other comprehensive income 8320 Shares of other comprehensive income of associates and joint ventures accounted for using equity method, components of other comprehensive income that will not be reclassified to profit or loss Components of other comprehensive income (loss) that will not be reclassified to profit or loss 8360 Components of other comprehensive income (loss) that will be reclassified to profit or loss 8361 Exchange differences on translation 8370 Shares of other comprehensive income of associates and joint ventures accounted for using equity method, components of other comprehensive income that will be reclassified to profit or loss Components of other comprehensive income (loss) that will be reclassified to profit or loss 8300 Other comprehensive income, net 8500 Comprehensive income Profit attributable to: 8610 Owners of parent 8620 Non-controlling interests Comprehensive income attributable to: 8710 Owners of parent 8720 Non-controlling interests Earnings per share (note 6(w)) Basic earnings per share Diluted earnings per share	For the three month	s ended March 31 2022 Amount % 3,535,614 100 3,435,816 97 99,798 3 19,205 1 39,942 1 497 - (52) - 59,592 2 40,206 1 935 - 5,576 - 142,006 4 (1,169) - (8,378) - 138,970 4 179,176 5 (43,456) (1) 135,720 4 (13,853) - (22,500) (1) (36,353) (1) 18,956 1 354 - 19,310 1 (17,043) - 118,677 4 95,086 3 40,634 1 135,720 4 73,979 2 44,698 2 118,677 4 0.180 0.180
	2023 Amount % $ 2,318,484 100 2,310,793 100 7,691 - 11,385 - 31,184 2 77 - 14 - 42,660 2 (34,969) (2) 1,984 - 2,497 - 12,801 1 (3,289) - 16,525 1 30,518 2 (4,451) - 3,863 - (588) - 58,656 3 33,089 1 91,745 4 (2,715) - (62) - (2,777) - 88,968 4 $ 88,380 4 $ (1,818) - 1,230 - $ (588) - $ 87,358 4 1,022 - $ 88,380 4 $ (0.003) $ (0.003)

See accompanying notes to financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Reviewed only, not audited in accordance with Standards on Auditing

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Consolidated Statements of Changes in Equity

For the three months ended March 31, 2023 and 2022

(Expressed in Thousands of New Taiwan Dollars)

				Equity attri	butable to owners	of parent					Total equity 7,371,126 135,720 (17,043)
Ordinary shares $ 5,278,698 - - - - - $ 5,278,698 $ 5,278,698 - - - - - $ 5,278,698	Capital surplus 46,300 - - - 18,374 - 64,674 70,947 - - - - - 70,947		Retained	earnings	Total 1,779,957 95,086 - 95,086 - 6,041 1,881,084 1,337,081 (1,818) - (1,818) (1,771) (9,442) 1,324,050		O	ther equity interes	t Total 56,031 - (21,107) (21,107) - (6,041) 28,883 (214,852) - 89,176 89,176 1,771 9,442 (114,463)	Treasury shares (13) - - - - - (13) - - - - - - -
						Exchange differences on translation of foreign financial statements		Unrealized gains (losses) on financial assets measured at fair value through other comprehensive income 90,665 - (36,353) (36,353) - (6,041) 48,271 (207,460) - 91,745 91,745 1,771 9,442 (104,502)
		Legal reserve 612,264 - - - - - 612,264 639,287 - - - - - 639,287	Special reserve - - - - - - - 8,811 - - - - - 8,811	Unappropriated retained earnings 1,167,693 95,086 - 95,086 - 6,041 1,268,820 688,983 (1,818) - (1,818) (1,771) (9,442) 675,952
						(34,634) - 15,246 15,246 - - (19,388) (7,392) - (2,569) (2,569) - - (9,961)
											118,677
											18,374 -
											7,508,177
											6,722,246 (588) 88,968
											88,380
											- -
											6,810,626

See accompanying notes to financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Reviewed only, not audited in accordance with Standards on Auditing TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the three months ended March 31, 2023 and 2022

(Expressed in Thousands of New Taiwan Dollars)

		For the three months	ended March 31
		2023	2022
Cash flows used in operating activities:
Profit (loss) before tax	$	(4,451)	179,176
Adjustments:
Adjustments to reconcile profit
Depreciation expense		69,273	68,766
Amortization expense		369	708
Expected credit impairment loss (gain)		14	(52)
Interest expense		3,289	1,169
Interest income		(1,984)	(935)
Dividend income		(1,382)	(546)
Share of loss (profit) of associates and joint ventures accounted for using
equity method		(14,726)	9,569
Gain on disposal of non-current assets held for sale		-	(132,748)
Gain on lease modification		(28)	(6)
Loss from decline (gain from recovery) in value of inventories		4,157	(120,669)
Total adjustments to reconcile profit (loss)		58,982	(174,744)
Changes in operating assets and liabilities:
Changes in operating assets:
Financial assets mandatorily measured at fair value through profit or loss		(54,408)	(150)
Accounts receivable		(204,016)	(401,471)
Other receivables		(3,474)	(7,589)
Inventories		96,160	570,106
Prepayments		(128,686)	16,978
Other current assets		255	8
Other financial assets		(31,291)	(81,354)
Total changes in operating assets		(325,460)	96,528
Changes in operating liabilities:
Financial liabilities mandatorily measured at fair value through profit or		70	-
loss
Current contract liabilities		(1,412)	(14,731)
Notes payable		-	(2)
Accounts payable		112,797	(89,142)
Other payables		(23,414)	(31,349)
Other current liabilities		206	(33,839)
Net defined benefit liabilities		235	194
Total changes in operating liabilities		88,482	(168,869)
Total changes in operating assets and liabilities		(236,978)	(72,341)

See accompanying notes to financial statements.

7-1

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Reviewed only, not audited in accordance with Standards on Auditing TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows (Continued) For the three months ended March 31, 2023 and 2022

(Expressed in Thousands of New Taiwan Dollars)

Cash outflow generated from operations Interest received Dividends received Interest paid Dividends paid Income taxes paid Net cash flows used in operating activities Cash flows from (used in) investing activities: Proceeds from disposal of financial assets at fair value through other comprehensive income Proceeds from disposal of non-current assets classified as held for sale Acquisition of property, plant and equipment Increase in refundable deposits Decrease in refundable deposits Net cash flows from (used in) investing activities Cash flows used in financing activities: Increase in short-term borrowings Decrease in short-term borrowings Repayments of long-term borrowings Payment of lease liabilities Decrease in other non-current liabilities Net cash used in financing activities Effect of exchange rate changes on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period	For the three months ended March 31 2023 2022 $ (182,447) (67,909) 1,892 1,088 16 546 (3,451) (1,176) - (14) (3,052) (6,090) (187,042) (73,555) 288 - 5,474 202,912 (41,756) (37,653) (30) - - 74 (36,024) 165,333 694,500 307,500 (803,500) (343,259) (2,061) (2,074) (1,509) (1,394) - (24) (112,570) (39,251) (667) 4,202 (336,303) 56,729 765,147 253,124 $ 428,844 309,853
	2023 $ (182,447) 1,892 16 (3,451) - (3,052) (187,042) 288 5,474 (41,756) (30) - (36,024) 694,500 (803,500) (2,061) (1,509) - (112,570) (667) (336,303) 765,147 $ 428,844

Cash outflow generated from operations
Interest received
Dividends received
Interest paid
Dividends paid
Income taxes paid
Net cash flows used in operating activities
Cash flows from (used in) investing activities:
Proceeds from disposal of financial assets at fair value through other
comprehensive income
Proceeds from disposal of non-current assets classified as held for sale
Acquisition of property, plant and equipment
Increase in refundable deposits
Decrease in refundable deposits
Net cash flows from (used in) investing activities
Cash flows used in financing activities:
Increase in short-term borrowings
Decrease in short-term borrowings
Repayments of long-term borrowings
Payment of lease liabilities
Decrease in other non-current liabilities
Net cash used in financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

For the three months ended March 31
2023
2022
$ (182,447)
(67,909)
1,892
1,088
16
546
(3,451)
(1,176)
-
(14)
(3,052)
(6,090)
(187,042)
(73,555)
288
-
5,474
202,912
(41,756)
(37,653)
(30)
-
-
74
(36,024)
165,333
694,500
307,500
(803,500)
(343,259)
(2,061)
(2,074)
(1,509)
(1,394)
-
(24)
(112,570)
(39,251)
(667)
4,202
(336,303)
56,729
765,147
253,124
$
428,844
309,853

2023
$ (182,447)
1,892
16
(3,451)
-
(3,052)
(187,042)
288
5,474
(41,756)
(30)
-
(36,024)
694,500
(803,500)
(2,061)
(1,509)
-
(112,570)
(667)
(336,303)
765,147
$
428,844

See accompanying notes to financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Reviewed only, not audited in accordance with Standards on Auditing as of March 31, 2023 and 2022 TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

March 31, 2023 and 2022

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

(1) Company history

Taiwan Styrene Monomer Corp. (the “Company”) was incorporated on November 16, 1979, under the approval of Ministry of Economic Affairs, Republic of China (ROC). Registered address is 8F.-1, No.6, Sec.1, Roosevelt Rd., Taipei City. Please refer to note 4(b) for the major business activities of the Company and its subsidiaries (together referred to as the "Group").

(2) Approval date and procedures of the consolidated financial statements

The consolidated financial statements were reported to the Board of Directors, then were issued on May 10, 2023.

(3) New standards, amendments and interpretations adopted

(a) The impact of the International Financial Reporting Standards (“IFRSs”) endorsed by the Financial Supervisory Commission, R.O.C. (“FSC”) which have already been adopted.

The Group has initially adopted the following new amendments, which do not have a significant impact on its consolidated financial statements, from January 1, 2023:

●Amendments to IAS 1 “Disclosure of Accounting Policies”
●Amendments to IAS 8 “Definition of Accounting Estimates”
●Amendments to IAS 12 “ Deferred Tax related to Assets and Liabilities arising from a Single Transaction”
(b) The impact of IFRS issued by IASB but not yet endorsed by the FSC

The Group does not expect the following new and amended standards, which have yet to be endorsed by the FSC, to have a significant impact on its consolidated financial statements:

●Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets Between an Investor and Its Associate or Joint Venture”
●IFRS 17 “ Insurance Contracts” and amendments to IFRS 17 “ Insurance Contracts”
●Amendments to IAS 1 “Classification of Liabilities as Current or Non-current”
●Amendments to IAS 1 “Non-current Liabilities with Covenants”
●Amendments to IFRS 17 “Initial Application of IFRS 17 and IFRS 9 – Comparative Information “
●IFRS16 “Requirements for Sale and Leaseback Transactions”

(Continued)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(4) Summary of significant accounting policies

(a) Statement of compliance

These consolidated financial statements have been prepared in accordance with the Regulation Governing the Preparation of Financial Reports by Securities Issuers (the “Regulation”) and IAS 34 “Interim Financial Reporting” which are endorsed and issued into effect by FSC, and do not include all of the information required by the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations and SIC Interpretations endorsed and issued into effect by the FSC (hereinafter referred to IFRS endorsed by the FSC) for a complete set of the annual consolidated financial statements.

Except the following accounting policies mentioned below, the significant accounting policies adopted in the consolidated financial statements are the same as those in the consolidated financial statement for the year ended December 31, 2022. For the related information, please refer to note 4 of the consolidated financial statements for the year ended December 31, 2022.

(b) Basis of consolidation

(i) List of subsidiaries in the consolidated financial statements:

Name of investor	Name of subsidiary	Principal activity	Shareholding (%) March 31, 2023 December 31, 2022 March 31, 2022 Note	Shareholding (%) March 31, 2023 December 31, 2022 March 31, 2022 Note	Shareholding (%) March 31, 2023 December 31, 2022 March 31, 2022 Note
			March 31, 2023	December 31, 2022
The Company The Company The Company The Company YSIC Ltd. YSIC Ltd. YSIC Ltd. Kun Shan International Ltd. Kun Shan International Ltd.	YSIC Ltd. Yuan-Shin Materials Technology Co., Ltd. Yangmingshan Tien Lai Resort & SPA Asia Carbons & Technology Inc. Grand Capital Co., Ltd. Tien Lai Co., Ltd. Kun Shan International Ltd. Kun Shan Yu-Fu Technology Education Consulting Co., Ltd. Kun Shan Jia-an Technology Education Consulting Co., Ltd.	General investment, residential building and industrial plant development rental business Basic chemical materials and plastic raw material manufacturing Hotel Electronic component manufacturing Investment Piping engineering Investment Educational consulting, information consulting, software and data storage consultation Educational consulting, information consulting, software and data storage consultation	99.99 100.00 65.07 - 100.00 50.00 62.03 100.00 100.00	99.99 100.00 65.07 - 100.00 50.00 62.03 100.00 100.00	99.99 100.00 Note 1 65.07 Note 2 98.58 Note 3 100.00 Note 1 50.00 Note 1 and 4 62.03 100.00 100.00

(Continued)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Note 1: Non-significant subsidiaries for which the financial statements have not been reviewed by independent auditors.
Note 2: The Company and YSIC Ltd. (holding 12.10% of common shares) totally hold 77.17% of common shares of Yangmingshan Tien Lai Resort & SPA.
Note 3: On August 28, 2019, the shareholders determined to dissolve Asia Carbons &Technology Inc. and the dissolution date was August 31, 2019. On December 30, 2022, Asia Carbons &Technology Inc. declared the completion of liquidation to the court.
Note 4: The Group does not directly or indirectly hold more than half of the total shares of Tien Lai Co., Ltd., but because the chairman of the company is designated by the Group and the Group has control over the company, it is incorporated into consolidation.

(c) Employee benefits

The pension cost in the interim period was calculated and disclosed on a year-to-date basis by using the actuarially determined pension cost rate at the end of the prior fiscal year.

(d) Income taxes

The income tax expenses have been prepared and disclosed in accordance with paragraph B12 of International Accounting Standards 34, Interim Reporting.

Income tax expenses for the period are best estimated by multiplying pre-tax income for the interim reporting period by the effective annual tax rate as forecasted by the management. This should be recognized fully as tax expense for the current period (and allocated to current and deferred taxes based on its proportionate size).

(5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty

The preparation of the consolidated financial statements in conformity with the Regulations and the IFRSs (in accordance with IAS 34 “Interim Financial Reporting” and endorsed by the FSC) requires management to make judgments, estimates and assumptions that affect the application of the accounting policies and the reported amount of assets, liabilities, income and expenses. Actual results may differ from these estimates.

The preparation of the consolidated interim financial statements, estimates and underlying assumptions are reviewed on an ongoing basis which are in conformity with the consolidated financial statements for the year ended December 31, 2022. For related information, please refer to note 5 of the consolidated financial statements for the year ended December 31, 2022.

(Continued)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(6) Explanation of significant accounts

Except for the following disclosures, there is no significant difference as compared with those disclosed in the consolidated financial statements for the year ended December 31, 2022. Please refer to notes 6 (a) to (ae) of the 2022 annual consolidated financial statements.

(a) Cash and cash equivalents

Cash on hand Petty cash Deposits in bank Cash equivalents Time deposits due within one year b) Financial assets and liabilities at fair value Mandatorily measured at fair value through profit or loss: Current: Listed stocks Funds Derivative instruments not used for hedging-foreign exchange swap contracts Non-current: Listed stocks Total Held-for-tradingfinancialliabilities: Derivative instruments not used for hedging-foreign exchange swap contracts	March 31, 2023 December 31, 2022 $ 1,081 969 890 892 382,561 719,192 44,312 44,094 $ 428,844 765,147 through profit or loss March 31, 2023 December 31, 2022 $ 247,503 193,917 29,535 29,327 - 468 8,658 7,576 $ 285,696 231,288 March 31, 2023 December 31, 2022 $ 70 -	March 31, 2022
		1,484 962 307,407 -
		309,853
		March 31, 2022
		275,759 38,336 - 9,740
		323,835
		March 31, 2022
		-

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

(Continued)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The Group uses derivative financial instruments to hedge certain foreign exchange risk exposures arising from its operating activities. The following derivative instruments, without the application of hedge accounting, were classified as mandatorily measured at fair value through profit or loss financial assets and liabilities:

Buy USD / Sell TWD Buy USD / Sell TWD Buy USD / Sell TWD Buy USD / Sell TWD	March 31, 2023 Contract amount ( in thousand) Maturity dates
	USD 8,000 2023.05 December 31, 2022 Contract amount ( in thousand) Maturity dates
	USD 8,000 2023.01 USD 6,200 2023.01 USD 1,000 2023.02

Accounts receivable Less: Loss allowance	March 31, 2023 $ 1,181,106 (1,907) $ 1,179,199	December 31, 2022 977,474 (2,367) 975,107	March 31, 2022
			1,321,921 (2,432)
			1,319,489

The Group applies the simplified approach to provide for its expected credit losses, i.e. the use of lifetime expected loss provision for all receivables. To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics and the days past due, as well as incorporated forward looking information. The loss allowance provision was determined as follows:

	March 31, 2023
Gross carrying amount $ 1,178,744 227 157 94 1,884 $ 1,181,106	Weighted- average loss rate 0.005% 1% 2% 2% 50%~100%	Loss allowance provision
		59 2 3 2 1,841
		1,907

(Continued)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2022	December 31, 2022
Gross carrying amount $ 974,638 322 52 100 2,362 $ 977,474	Weighted- average loss rate 0.005% 1% 2% 2% 50%~100% March 31, 2022	Loss allowance provision
		48 3 1 2 2,313
		2,367

	Weighted- average loss rate 0.005% 1% 2% 2% 50%~100%	Loss allowance provision
		66 2 2 2 2,360
		2,432

The movements in the allowance for accounts receivable were as follows:

Beginning balance Recognize impairment loss (reversal of impairment loss) Amounts written off Effect of exchange rate changes Ending balance	For the three months ended March 31 2023 2022 $ 2,367 2,466 14 (52) (474) - - 18 $ 1,907 2,432
	2023 $ 2,367 14 (474) - $ 1,907

(d) Inventories

Merchandise inventory Finished goods By-product Semi-finished products Work in progress Raw materials Supplies	March 31, 2023 $ 1,495 72,746 10,890 133,194 79,150 148,041 22,957 $ 468,473	December 31, 2022 1,587 190,868 9,363 62,616 46,865 178,560 78,931 568,790	March 31, 2022
			1,568 55,791 11,784 64,401 73,354 153,109 17,197
			377,204

(Continued)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Except for the transfer of inventory to operating costs from sales, other losses (gains) directly included in operating costs are as follows:

included in operating costs are as follows:
Loss from decline (gain from recovery) in value of inventories	For the three months ended March 31 2023 2022 $ 4,157 (120,669)
	2023 $ 4,157

None of the inventories of the Group was pledged as collateral on March 31, 2023, December 31 and March 31, 2022.

(e) Prepayments

Prepayment for purchases Supplies Overpaid sales tax Others	March 31, 2023 $ 12,934 120,686 68,596 93,123 $ 295,339	December 31, 2022 68 109,032 79,225 27,209 215,534	March 31, 2022
			4,740 101,379 42,601 13,277
			161,997

(f) Non-current assets (or disposal groups) held for sale

On January 22, 2021, the Group obtained an approval from the Board of Directors to dispose the partial property, plant and equipment, right-of-use assets and investment property held by Kun Shan Yu-Fu Technology Education Consulting Co., Ltd. and Kun Shan Jia-an Technology Education Consulting Co., Ltd. Therefore, the Group reclassified them as non-current assets (or disposal groups) held for sale, which amounting to $65,008 thousand. The Group completed the disposal in February 2022 and recognized the gain on disposal amounting to $132,748 thousand.

In December, 2022, the Group determined to dispose its shares of Infmedia- Inc., therefore, the book value of the investment which amounting to $5,474 thousand was reclassified from non-current investment in equity instrument at FVOCI to non-current assets (or disposal groups) held for sale. In January, 2023, the Group realized a loss of $5,626 thousand, which was reclassified from other comprehensive income to retained earnings.

(g) Other current financial assets

Time deposits maturing over three months Restricted deposits in bank	March 31, 2023 $ 60,291 7,415 $ 67,706	December 31, 2022 29,000 7,415 36,415	March 31, 2022
			236,421 4,399
			240,820

The above assets of the Group had been pledged as collateral of performance guarantee; please refer to note 8.

(Continued)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(h) Non-current financial assets at fair value through other comprehensive income

Equity investments: Domestic non-listed stocks Foreign non-listed equity investments	March 31, 2023 $ 616,572 328,301 $ 944,873	December 31, 2022 558,717 329,826 888,543	March 31, 2022
			684,874 325,670
			1,010,544

(i) The Group designated the investments shown above at fair value through other comprehensive income because these equity securities represent those investments that the Group intends to hold for long-term strategic purposes not for trading purposes. During the three months ended March 31, 2023, the dividends of $1,276 thousand were recognized. There were no dividends recognized during the three months ended March 31, 2022.
(ii) In March, 2023, the Group disposed its shares held in Euroc Venture Capital Corp. and Euroc III Venture Capital Corp. as a result of the completion of the liquidation. The shares disposed had a fair value of $288 thousand and the Group realized a loss of $2,359 thousand, which was recognized as other comprehensive income, and thereafter, was reclassified to retained earnings. There were no disposals of strategic investments and transfers of any cumulative gain or loss within equity relating to these investments for the three months ended December 31, 2022.
(iii) For market risk; please refer to note 6(aa).
(iv) None of the above-mentioned financial assets had been pledged as collateral as of March 31, 2023, December 31 and March 31, 2022.
(i) Investments accounted for using equity method
(i) Associates

Associates of the Group consisted of the following:

March 31, 2023 Amount Share- holding (%) Grand Cathay Venture Capital Co., Ltd. $ 504,022 25.00 Wonderland Enterprise Co., Ltd. 654,969 37.04 Globaltop Technology Inc. 41,502 23.89 Functional Coating System Technologies Co., Ltd. 25,349 34.88 Universal Investments Limited 17,610 40.00 $ 1,243,452	December 31, 2022 Amount Share- holding (%) 478,292 25.00 630,762 37.04 43,363 23.89 25,575 34.88 17,820 40.00 1,195,812	March 31, 2022
	Amount 478,292 630,762 43,363 25,575 17,820 1,195,812	Amount Share- holding (%) 454,057 25.00 818,010 37.04 48,390 23.89 26,790 34.88 17,303 40.00 1,364,550

(Continued)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The Group’s financial information for investments accounted for using equity method that are individually insignificant was as follows:

Attributable to the Group: Net income (loss) Other comprehensive income Total comprehensive income	For the three months ended March 31 2023 2022 $ 14,726 (9,569) 33,027 (22,146) $ 47,753 (31,715)

(ii) Pledge to secure

None of the investments using equity method of the Group was pledged as collateral.

(iii) The unreviewed financial statements of investments accounted for using equity method

The investments accounted for using equity method and the share of the profit or loss and other comprehensive income were calculated based on the financial statements that had not been reviewed.

(j) Property, plant and equipment

The movements of the property, plant and equipment of the Group were as follows:

Cost: Balance as of January 1, 2023 Additions Disposals Reclassification Effect of exchange rate changes Balance as of March 31, 2023 Balance as of January 1, 2022 Additions Disposals Reclassification Effect of exchange rate changes Balance as of March 31, 2022 Accumulated depreciation: Balance as of January 1, 2023 Depreciation Disposals Effect of exchange rate changes Balance as of March 31, 2023 Balance as of January 1, 2022 Depreciation Disposals Effect of exchange rate changes Balance as of March 31, 2022 Carrying value: Balance as of January 1, 2023 Balance as of March 31, 2023 Balance as of January 1, 2022 Balance as of March 31, 2022		Land $ 1,576,740 - - - - $ 1,576,740 $ 1,576,740 - - - - $ 1,576,740 $ - - - - $ - $ - - - - $ - $ 1,576,740 $ 1,576,740 $ 1,576,740 $ 1,576,740	Land improvements 8,462 - - - - 8,462 8,462 - - - - 8,462 8,425 5 - - 8,430 8,404 5 - - 8,409 37 32 58 53	Buildings and structures 621,630 - - - - 621,630 621,630 - - - - 621,630 258,649 3,610 - - 262,259 244,208 3,612 - - 247,820 362,981 359,371 377,422 373,810	Machinery and equipment 7,532,609 - (9,839) 2,483 - 7,525,253 7,307,108 - (68,266) 269,068 - 7,507,910 6,148,037 52,327 (9,839) - 6,190,525 6,008,783 51,701 (68,266) - 5,992,218 1,384,572 1,334,728 1,298,325 1,515,692	Transportatio n equipment 2,959 - - - 5 2,964 4,276 - - - 42 4,318 2,805 29 - 5 2,839 4,004 30 - 38 4,072 154 125 272 246	Other equipment 859,400 195 (1,020) - - 858,575 844,220 242 - 1,200 - 845,662 586,979 11,440 (1,020) - 597,399 542,087 11,874 - - 553,961 272,421 261,176 302,133 291,701	Construction in progress 53,965 32,641 - (2,483) - 84,123 298,058 13,828 - (284,148) - 27,738 - - - - - - - - - - 53,965 84,123 298,058 27,738	Total 10,655,765 32,836 (10,859) - 5

									10,677,747
									10,660,494 14,070 (68,266) (13,880) 42
									10,592,460
									7,004,895 67,411 (10,859) 5
									7,061,452
									6,807,486 67,222 (68,266) 38
									6,806,480
									3,650,870
									3,616,295
									3,853,008
									3,785,980

(Continued)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

As of March 31, 2023, December 31 and March 31, 2022, there was no recognized accumulated impairment losses of property, plant and equipment.

As of March 31, 2023, December 31 and March 31, 2022, the property, plant and equipment of the Group had been pledged as collateral for loans; please refer to note 8.

(k) Right-of-use assets

The cost and accumulated depreciation of leased land, buildings and structures, transportation equipment, and office equipment of the Group were as follows:

Cost: Balance as of January 1, 2023 Additions Lease modification Disposals Balance as of March 31, 2023 Balance as of January 1, 2022 Lease modification Disposals Balance as of March 31, 2022 Accumulated depreciation: Balance as of January 1, 2023 Depreciation Disposals Balance as of March 31, 2023 Balance as of January 1, 2022 Depreciation Disposals Balance as of March 31, 2022 Carrying amount: Balance as of January 1, 2023 Balance as of March 31, 2023 Balance as of January 1, 2022 Balance as of March 31, 2022	Land $ 4,148 - 142 - $ 4,290 $ 4,064 84 - $ 4,148 $ 301 55 - $ 356 $ 87 54 - $ 141 $ 3,847 $ 3,934 $ 3,977 $ 4,007	Buildings and structures 1,252 - - - 1,252 1,254 - - 1,254 554 157 - 711 354 157 - 511 698 541 900 743	Transportation equipment 12,555 1,234 - (586) 13,203 12,769 - (1,288) 11,481 2,511 1,084 (586) 3,009 10,328 1,007 (1,288) 10,047 10,044 10,194 2,441 1,434	Office equipment 9,614 - - - 9,614 4,814 - - 4,814 3,370 480 - 3,850 2,167 240 - 2,407 6,244 5,764 2,647 2,407	Total 27,569 1,234 142 (586) 28,359 22,901 84 (1,288) 21,697 6,736 1,776 (586) 7,926 12,936 1,458 (1,288) 13,106 20,833 20,433 9,965 8,591

(Continued)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(l) Investment property

Cost: Balance as of March 31, 2023 (Balance as of January 1, 2023) Balance as of December 31, 2022 (Balance as of January 1, 2022) Accumulated depreciation: Balance as of January 1, 2023 Depreciation Balance as of March 31, 2023 Balance as of January 1, 2022 Depreciation Balance as of March 31, 2022 Carrying value: Balance as of January 1, 2023 Balance as of March 31, 2023 Balance as of January 1, 2022 Balance as of March 31, 2022	Land $ 46,101 $ 46,101 $ - - $ - $ - - $ - $ 46,101 $ 46,101 $ 46,101 $ 46,101	Buildings and structures 17,625 17,625 7,057 86 7,143 6,711 86 6,797 10,568 10,482 10,914 10,828	Total
			63,726
			63,726
			7,057 86
			7,143
			6,711 86
			6,797
			56,669
			56,583
			57,015
			56,929

The fair value of the investment property was not significantly different from those disclosed in note 6(l) of the annual consolidated financial statements for the year ended December 31, 2022. For other relevant information, please refer to note 6(l) of the consolidated financial statements of 2022.

None of the investment property was pledged as collateral as of March 31, 2023, December 31 and March 31, 2022.

(Continued)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(m) Intangible assets

The movements of intangible assets of the Group were as follows:

Cost: Balance as of March 31, 2023 (Balance as of January 1, 2023) Balance as of March 31, 2022 (Balance as of January 1, 2022) Accumulated amortization: Balance as of January 1, 2023 Amortization Balance as of March 31, 2023 Balance as of January 1, 2022 Amortization Balance as of March 31, 2022 Carrying value: Balance as of January 1, 2023 Balance as of March 31, 2023 Balance as of January 1, 2022 Balance as of March 31, 2022 Other long-term investment, net Construction and operation of student dormitory	Technical royalty $ 22,242 $ 22,242 $ 17,043 244 $ 17,287 $ 16,068 244 $ 16,312 $ 5,199 $ 4,955 $ 6,174 $ 5,930 March 31, 2023 $ 28,870	Computer software 1,961 6,061 1,035 125 1,160 4,303 464 4,767 926 801 1,758 1,294 December 31, 2022 28,728	Total
			24,203
			28,303
			18,078 369
			18,447
			20,371 708
			21,079
			6,125
			5,756
			7,932
			7,224
			March 31, 2022
	$		31,715

(n) Other long-term investment, net

The period of rights of investment in construction and operation of student dormitory is 30 years. The subsidy and management income will be recovered annually according to the agreement to July 31, 2035.

(o) Other non-current assets

Long-term prepaid expenses Net defined benefit assets	March 31, 2023 $ 72,840 6,324 $ 79,164	December 31, 2022 23,959 6,324 30,283	March 31, 2022
			69,951 5,489
			75,440

(Continued)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(p) Short-term borrowings

Short-term borrowings of the Group were as follows:

Unsecured bank loans Secured bank loans Total Unused short-term credit lines Range of interest rate	March 31, 2023 $ 591,000 107,500 $ 698,500 $ 1,107,500 1.80~2.10%	December 31, 2022 700,000 107,500 807,500 1,330,329 1.70~2.060%	March 31, 2022
			200,000 117,500
			317,500
			787,166
			1.00%~1.45%

For the collateral for short-term borrowings, please refer to note 8.

(q) Other payables

Other payables of the Group were as follows:

Accrued payroll Employee bonus payable Compensation payable to directors Compensated absences Other accrued expenses payable Payables on equipment Dividends payable Other payables-other Total	March 31, 2023 $ 2,356 441 78 16,621 38,263 1,722 452 21,209 $ 81,142	December 31, 2022 27,027 441 78 16,404 47,456 10,642 452 11,138 113,638	March 31, 2022
			9,417 3,334 3,029 29,924 41,413 664 452 16,937
			105,170

(r) Long-term borrowings

Long-term borrowings of the Group were as follows:

Secured bank loans Less: current portion Total Unused long-term credit lines		March 31, 2023	March 31, 2023
	Currency NTD	Range of interest rate 2.26%	Due year Amount 2030 $ 66,722 8,273 $ 58,449 $ 20,978

(Continued)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

	December 31, 2022	December 31, 2022	December 31, 2022
Currency NTD	Range of interest rate Due year Amount 2.135% 2030 $ 68,783 8,307 $ 60,476 $ 18,917 March 31, 2022

Currency NTD	Range of interest rate 1.76%	Due year Amount 2030 $ 74,961 8,301 $ 66,660 $ 12,739	Amount

For the collateral for long-term borrowings, please refer to note 8.

(s) Lease liabilities

Lease liabilities of the Group were as follows:

Current Non-current	March 31, 2023 $ 6,524 $ 12,950	December 31, 2022 6,393 13,242	March 31, 2022
			3,067
			5,415

For the maturity analysis, please refer to 6(aa).

The amounts recognized in profit or loss were as follows:

		For the three months ended	For the three months ended
		March 31
		2023	2022
Interest on lease liabilities	$	102	34
Expenses relating to short-term leases	$	140	75
Expenses relating to leases of low-value assets, excluding
short-term leases of low-value assets	$	152	187

The amounts recognized in the statements of cash flows were as follows:

Total cash outflow for leases	For the three months ended March 31	For the three months ended March 31
	2023 $ 1,903	2022
		1,690

(Continued)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(t) Employee benefits

(i) Defined benefit plans

Management believes that there was no material volatility of the market, no material reimbursement and settlement or other material one-time events since prior fiscal year. As a result, the pension cost in the accompanying interim period was measured and disclosed according to the actuarial report as of December 31, 2022 and 2021.

The expenses recognized in profit or loss for the Group were as follows:

Operating cost Operating expenses Total	For the three months ended March 31	For the three months ended March 31
	2023 $ 282 97 $ 379	2022
		260 99
		359

(ii) Defined contribution plans

The Group’ s expenses under the pension plan cost to Bureau of Labor Insurance were as follows:

Operating cost Operating expenses Total	For the three months ended March 31	For the three months ended March 31
	2023 $ 2,150 705 $ 2,855	2022
		2,074 746
		2,820

(u) Income tax

The components of income tax expense (benefit) of the Group were as follows:

Current income tax expense Current period Deferred income tax benefit Origination and reversal of temporary difference Income tax expense (benefit)	For the three months ended March 31	For the three months ended March 31
	2023 $ 7,976 (11,839) $ (3,863)	2022
		35,292 8,164
		43,456

The Company’s income tax return for the year 2020 had been examined by the tax authorities.

(Continued)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(v) Capital and other equity

Except for the following disclosure, there was no significant change for capital and other equity for the three months ended March 31, 2023 and 2022. Please refer to note 6(v) of the consolidated financial statements for the year ended December 31, 2022.

(i) Capital surplus

The balances of capital surplus of the Company were as follows:

Difference arising from subsidiary’s share price and its carrying value Changes in ownership interests in subsidiaries Changes in equity of investments in associates using equity method Treasury share transactions Donation from shareholders Overdue dividends not received by shareholders Total	March 31, 2023 $ 8,953 26,307 6,659 4,430 13 24,585 $ 70,947	December 31, 2022 8,953 26,307 6,659 4,430 13 24,585 70,947	March 31, 2022
			8,953 26,307 6,594 4,433 13 18,374
			64,674

According to the R.O.C. Company Act, capital surplus can only be used to offset a deficit, and only the realized capital surplus can be used to increase the common stock or be distributed as cash dividends. The aforementioned realized capital surplus includes capital surplus resulting from premium on issuance of capital stock and earnings from donated assets received. According to the Regulations Governing the Offering and Issuance of Securities by Securities Issuers, capital increases by transferring capital surplus in excess of par value should not exceed 10% of the total common stock outstanding.

(ii) Retained earnings

The Company’s Article of Incorporation stipulates that Company’s net earnings should first be used to offset the prior years' deficits, if any, before paying any income taxes. Of the remaining balance, 10% is to be appropriated as legal reserve, and then any remaining profit together with any undistributed retained earnings shall be distributed according to the distribution plan proposed by the Board of Directors and submitted to the stockholders’ meeting for approval. In general, cash dividends shall not be less than 30% of total dividends. However, based on the need to respond to changes in the industry, major investment plans and improve the financial structure, or in the case of sudden major capital needs, the cash dividend payout rate could be adjusted to 10% to 30%. If the cash dividend is less than $0.1 per share, it will not be issued, and the stock dividend will be paid instead.

(Continued)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

On March 8, 2023, the Board of Directors resolved to distribute the 2022 earnings. On June 22, 2022, the shareholders’ meeting resolved to distribute the 2021 earnings. These earnings were appropriated as follows:

Dividends distributed to ordinary shareholders Cash (iii) Other equity Balance as of January 1, 2023 Exchange differences on foreign operations Exchange differences on associates and joint ventures accounted for using equity method Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income on associates and joint ventures accounted for using equity method Cumulative losses (gains) reclassified to retained earnings on disposal of investments in equity instruments designated at fair value through other comprehensive income Cumulative losses (gains) reclassified to retained earnings on associates disposal of investments in equity instruments designated at fair value through other comprehensive income Balance as of March 31, 2023 Balance as of January 1, 2022 Exchange differences on foreign operations Exchange differences on associates and joint ventures accounted for using equity method Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income on associates and joint ventures accounted for using equity method Cumulative losses (gains) reclassified to retained earnings on associates disposal of investments in equity instruments designated at fair value through other comprehensive income Balance as of March 31, 2022	$ Exchange differences on translation of foreign financial statements $ (7,392) (2,507) (62) - - - - $ (9,961) $ (34,634) 14,892 354 - - - $ (19,388)		2022 105,574 Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income (207,460) - - 58,656 33,089 1,771 9,442 (104,502) 90,665 - - (13,853) (22,500) (6,041) 48,271		2021 79,156 Total (214,852) (2,507) (62) 58,656 33,089 1,771 9,442 (114,463) 56,031 14,892 354 (13,853) (22,500) (6,041) 28,883

(Continued)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(w) Earnings per share

The Group’s basic earnings per share and diluted earnings per share were calculated as follows:

(i) Basic earnings per share

Profit (loss) attributable to the Company Weighted-average number of ordinary shares outstanding Earnings per share (NTD) (ii) Diluted earnings per share Profit (loss) attributable to the Company (diluted) Weighted-average number of ordinary shares outstanding Effect of dilutive potential ordinary shares Employee remuneration in stock Weighted-average number of ordinary shares outstanding (diluted) Diluted earnings per share (NTD) Revenue from contracts with customers (i) Disaggregation of revenue Primary geographical markets: Asia Europe Total Major products/services lines: Commodity sales revenue Travel service revenue Other operating revenue	For the three months ended March 31	For the three months ended March 31
	2023 2022 $ (1,818) 95,086 527,870 527,870 $ (0.003) 0.180 For the three months ended March 31	2022
		95,086
		527,870
		0.180

	2023 2022 $ (1,818) 95,086 527,870 527,869 - 172 527,870 528,041 $ (0.003) 0.180 For the three months ended March 31 2023 2022 $ 2,304,514 3,479,314 - 59,817 $ 2,304,514 3,539,131 $ 2,250,970 3,490,758 49,618 44,387 3,926 3,986 $ 2,304,514 3,539,131	2022
		95,086
		527,869 172
		528,041
		0.180
		3,479,314 59,817
		3,539,131
		3,490,758 44,387 3,986
		3,539,131

(x) Revenue from contracts with customers

(Continued)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Contract balances

Contract liabilities-travel service contract Contract liabilities-unearned sales revenue Total	March 31, 2023 $ 33,986 13,144 $ 47,130	December 31, 2022 40,713 7,829 48,542	March 31, 2022
			28,424 7,868
			36,292

For details on accounts receivable and allowance for impairment, please refer to note 6(c).

The amount of revenue recognized for the three months ended March 31, 2023 and 2022 that were included in the contract liability balance at the beginning of the period were $2,530 thousand and $10,978 thousand, respectively.

The major change in the balance of contract liabilities is the difference between the time frame in the performance obligation to be satisfied and the payment to be received.

(y) Non-operating income and expenses
(i) Other income

Details of other income of the Group were as follows:

Rent income Dividend income Others Total Other gains and losses Foreign exchange gains Gains on financial assets at fair value through profit or loss Gains on disposals of non-current assets (or disposal groups) held for sale Gains on lease modification Others Total	For the three months ended March 31 2023 2022 $ 258 277 1,280 546 959 4,753 $ 2,497 5,576 For the three months ended March 31 2023 2022 $ 1,544 2,845 11,229 6,431 - 132,748 28 6 - (24) $ 12,801 142,006

(ii) Other gains and losses

(Continued)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(iii) Finance costs

Interest expense	For the three months ended March 31	For the three months ended March 31
	2023 $ 3,289	2022
		1,169

(z) Remunerations to employees and directors

According to the Article of Incorporation, once the Company has annual profit, it should appropriate 1%~5% of the profit to its employees and 2.5% or less to its directors as remuneration. However, if the Company still has accumulated deficit, the profit should be reserved to offset the deficit.

For the three months ended March 31, 2023 there was no appropriation of remunerations to employees and directors because of net loss before tax.

For the three months ended March 31, 2022, the remunerations to employees and directors were both amounted to $2,884 thousand. These amounts were calculated using the Company's net income before tax without the remunerations to employees and directors for each period, multiplied by the proposed percentage which is stated under the Company's proposed Article of Incorporation. These remunerations were expensed under operating costs or expenses for each period. If there are any subsequent adjustments to the actual remuneration amounts after the annual shareholders' meeting, the adjustment will be regarded as changes in accounting estimates and will be reflected in profit or loss in the following year. Shares distributed to employees as employees' remuneration are calculated based on the closing price of the Company's shares on the day before the approval by the Board of Directors.

For the years ended December 31, 2022, there was no appropriation of remunerations to employees and directors because of net loss before tax.

For the years ended December 31, 2021, the remunerations to employees and directors were both amounted to $49 thousand. The differences between the amount as stated before and the actual distribution to employees and directors in 2021 were both $(49) thousand which already recognized in profit or loss in 2022. The information is available on the Market Observations Post System Website.

(aa) Financial instruments

Except for the contention mentioned below, there was no significant change in the fair value of the Group’s financial instruments and degree of exposure to credit risk, liquidity risk and market risk arising from financial instruments. For the related information, please refer to note 6(ab) of the consolidated financial statements for the year ended December 31, 2022.

(i) Credit risk

1) Credit risk exposure

The carrying amount of financial assets and contract assets represents the maximum amount exposed to credit risk.

(Continued)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

2) Concentration of credit risk

As of March 31, 2023, December 31 and March 31, 2022, the Group reviewed the concentrations of credit risk arising from the major top ten customers, and it was 95%, 94% and 96%, respectively, of the total accounts receivable. The concentrations of credit risk of the remaining accounts receivable are relatively small.

3) Credit risk of receivables

For credit risk exposure of trade receivables, please refer to note 6(c). Other financial assets at amortized cost include time deposits and other receivables, etc. The allowance for receivables in the financial assets is measured by the amount of lifetime expected credit losses. The remaining financial assets are measured by the amount of 12-month expected credit losses.

(ii) Liquidity risk

The following table shows the contractual maturities of financial liabilities, including estimated interest payments.

Carrying amount	Contractual cash flows	Within 1 year	1-2 years	2-5 years	Over 5 years
$ 698,500 1,088,976 66,722 660 19,474 $ 1,874,332 $ 807,500 1,007,642 68,783 660 19,635 $ 1,904,220 $ 317,500 990,665 74,961 692 8,482 $ 1,392,300	701,616 1,088,976 72,560 660 20,486	701,616 1,088,976 9,739 350 6,849	- - 9,739 310 5,800	- - 29,218 - 4,827 34,045 - - 29,084 - 5,375 34,459 - - 28,600 342 1,231 30,173	- - 23,864 - 3,010
	1,884,298	1,807,530	15,849		26,874
	809,969 1,007,642 74,653 660 20,696	809,969 1,007,642 9,695 350 6,730	- - 9,695 310 5,423		- - 26,179 - 3,168
	1,913,620	1,834,386	15,428		29,347
	318,149 990,665 80,668 692 9,226	318,149 990,665 9,553 - 3,294	- - 9,553 350 1,532		- - 32,962 - 3,169
	1,399,400	1,321,661	11,435		36,131

The Group does not expect the cash flows included in the maturity analysis to occur significantly earlier or at significantly different amounts.

(Continued)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(iii) Market risk

1) Currency risk

The Group’s significant exposure to foreign currency risk was as follows:

Financial assets Monetary items USD CNY Financial liabilities	Financial assets Monetary items USD CNY Financial liabilities	March 31, 2023 Foreign currency Exchange rate NTD $ 9,224 30.450 280,871 69,527 4.431 308,074 8,351 30.450 254,288 758 4.431 3,359 30 33.150 995	March 31, 2023 Foreign currency Exchange rate NTD $ 9,224 30.450 280,871 69,527 4.431 308,074 8,351 30.450 254,288 758 4.431 3,359 30 33.150 995	December 31, 2022 Foreign currency Exchange rate NTD 8,424 30.710 258,701 69,447 4.409 306,192 7,898 30.710 242,548 759 4.409 3,346 19 32.720 622	December 31, 2022 Foreign currency Exchange rate NTD 8,424 30.710 258,701 69,447 4.409 306,192 7,898 30.710 242,548 759 4.409 3,346 19 32.720 622	March 31, 2022	March 31, 2022
		Foreign currency $ 9,224 69,527 8,351 758 30	Exchange rate 30.450 4.431 30.450 4.431 33.150	Foreign currency 8,424 69,447 7,898 759 19	Exchange rate 30.710 4.409 30.710 4.409 32.720	Foreign currency 13,613 76,291 4,192 1,003 -	Exchange rate NTD 28.625 389,672 4.509 343,996 28.625 119,996 4.509 4,523 - -
	Monetary items USD CNY EUR

The Group’s exposure to foreign currency risk arises from the translation of the foreign currency exchange gains and losses on cash and cash equivalents, accounts receivable, other receivables, other financial assets, accounts payable and other payables that are denominated in foreign currency. A weakening (strengthening) of 1% of the NTD against the USD, CNY and EUR as of March 31, 2023 and 2022, would have increased (decreased) net profit before tax by $3,303 thousand and $6,090 thousand for the three months ended March 31, 2023 and 2022, respectively. The analysis is performed on the same basis.

Since the Group has many kinds of functional currency, the information on foreign exchange gain (loss) on monetary items is disclosed by total amount. For the three months ended March 31, 2023 and 2022, foreign exchange gain (loss) (including realized and unrealized portions) amounted to gain of $1,544 thousand and $2,845 thousand, respectively.

2) Interest rate risk

Please refer to the notes on liquidity risk management and interest rate exposure of the Group’s financial assets and liabilities.

The following sensitivity analysis is based on the exposure to the interest rate risk of derivative and non-derivative financial instruments on the reporting date. Regarding assets with variable interest rates, the analysis is based on the assumption that the amount of assets outstanding at the reporting date was outstanding through the year. The rate of change is expressed as the interest rate increases or decreases by 1% when reporting to management internally, which also represents the management’ s assessment of the reasonably possible interest rate change.

If the interest rate had increased/decreased by 1%, the Group’s profit (loss) before tax would have decreased/increase by $1,913 thousand and $981 thousand for three months ended March 31, 2023 and 2022, respectively, with all other variable factors remaining constant. This is mainly due to the Group’s loan at variable rates.

(Continued)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

3) Other market price risk

If the securities price at the reporting date changes (the analysis is performed on the same basis and all other variable factors remaining constant), the effect for the profit and loss is illustrated below:

Prices of securities at the reporting date	For the three months ended March 31 2023 2022 Other comprehensive income after tax Net income Other comprehensive income after tax Net income $ 9,449 2,857 10,105 3,238 $ (9,449) (2,857) (10,105) (3,238)	For the three months ended March 31 2023 2022 Other comprehensive income after tax Net income Other comprehensive income after tax Net income $ 9,449 2,857 10,105 3,238 $ (9,449) (2,857) (10,105) (3,238)	For the three months ended March 31 2023 2022 Other comprehensive income after tax Net income Other comprehensive income after tax Net income $ 9,449 2,857 10,105 3,238 $ (9,449) (2,857) (10,105) (3,238)	For the three months ended March 31 2023 2022 Other comprehensive income after tax Net income Other comprehensive income after tax Net income $ 9,449 2,857 10,105 3,238 $ (9,449) (2,857) (10,105) (3,238)
	2023	Net income 2,857 (2,857)
	Other comprehensive income after tax $ 9,449 $ (9,449)		Other comprehensive income after tax 10,105 (10,105)
Increasing 1% Decreasing 1%
				(3,238)

(iv) Fair value information
1) Types and fair value of financial instruments

Financial assets measured at fair value through profit or loss and financial assets at fair value through other comprehensive income are measured at fair value on the basis of repeatability. The carrying amount and fair value of the financial assets and liabilities, including the information on fair value hierarchy were as follows; however, except as described in the following paragraphs, for financial instruments not measured at fair value whose carrying amount is reasonably close to the fair value, and lease liabilities, disclosure of fair value information is not required:

	March 31, 2023	March 31, 2023	March 31, 2023
Book value $ 256,161 29,535 944,873 428,844 1,179,199 7,165 67,706 3,848 1,686,762 $ 2,917,331		Fair value
	Level 1 256,161 29,535 - - - - - - - 285,696	Level 2 - - - - - - - - - -	Level 3 - - 944,873 - - - - - - 944,873	Total 256,161 29,535 944,873 - - - - -
				-
				1,230,569

(Continued)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

	March 31, 2023	March 31, 2023	March 31, 2023
Book value $ 70 698,500 1,008,655 80,321 66,722 660 19,474 $ 1,874,402		Fair value
	Level 1 Level 2 Level 3 - 70 - - - - - - - - - - - - - - - - - - - - 70 - December 31, 2022			Total 70 - - - - - -
				70

		Fair value
	Level 1 201,493 29,327 - - - - - - - - 230,820	Level 2 - - 468 - - - - - - - 468	Level 3 - - - 894,017 - - - - - - 894,017	Total 201,493 29,327 468 894,017 - - - - -
				-
				1,125,305

(Continued)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

	December 31, 2022	December 31, 2022	December 31, 2022
Book value $ 807,500 895,858 111,784 68,783 660 19,635 $ 1,904,220		Fair value
	Level 1 Level 2 - - - - - - - - - - - - - - March 31, 2022		Level 3 - - - - - - -	Total - - - - - -
				-

		Fair value
	Level 1 285,499 38,336 - - - - - - - 323,835 - - - - - - -	Level 2 - - - - - - - - - - - - - - - - -	Level 3 - - 1,010,544 - - - - - - 1,010,544 - - - - - - -	Total 285,499 38,336 1,010,544 - - - - -
				-
				1,334,379
				- - - - - -
				-

(Continued)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

2) Valuation techniques for financial instruments measured at fair value

A. Non-derivative financial instruments

A financial instrument is regarded as being quoted in an active market if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency and those prices represent actual and regularly occurring market transactions on an arm’ s-length basis. Whether transactions are taking place ‘ regularly’ is a matter of judgment and depends on the facts and circumstances of the market for the instrument.

Quoted market prices may not be indicative of the fair value of an instrument if the activity in the market is infrequent, the market is not well-established, only small volumes are traded, or bid-ask spreads are very wide. Determining whether a market is active involves judgment.

Measurements of fair value of financial instruments without an active market are based on valuation technique or quoted price from a competitor. Fair value, measured by using valuation technique that can be extrapolated from either similar financial instruments or discounted cash flow method or other valuation techniques, including models, is calculated based on available market data at the reporting date. For example, yield curve of Taipei Exchange and average interest rate of commercial paper quoted by Reuters.

Measurements of fair value of equity investments without an active market nor quoted market price are based on comparable listed company method. This method is based on the estimated earnings before interest, taxes, depreciation and amortization and the multipliers that are extrapolated from comparable listed company quoted prices. The estimated fair values are adjusted to the discounting effect of lack of market liquidity.

B. Derivative financial instruments

Measurement of the fair value of derivative instruments is based on the valuation techniques generally accepted by market participants such as the discounted cash flow or option pricing models. Fair value of currency swap contract is usually determined by the forward currency exchange rate.

3) Transfers between Level 1 and Level 2

There were no transfers for the three months ended March 31, 2023 and 2022.

(Continued)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

4) Reconciliation of Level 3 fair values

Opening balance, January 1, 2023 Total gains and losses recognized Other comprehensive income Disposals Effect of exchange rate changes Ending Balance, March 31, 2023 Opening balance, January 1, 2022 Total gains and losses recognized Other comprehensive income Effect of exchange rate changes Ending Balance, March 31, 2022	Fair value through other comprehensive income
	Unquoted equity instruments $ 888,543 58,656 (288) (2,038) $ 944,873 $ 1,016,623 (13,853) 7,774 $ 1,010,544

Above-mentioned total gains and losses were included in unrealized gains and losses from financial assets at fair value through other comprehensive income. Among those related to the assets still held on March 31, 2023 and 2022 were as follows:

Total gains and losses recognized: In other comprehensive income, and presented in “unrealized gains and losses from financial assets at fair value through other comprehensive income”	For the three months ended March 31 2023 2022 $ 58,656 (13,853)
	2023 $ 58,656

5) Quantified information on significant unobservable inputs (Level 3) used in fair value measurement

The Group’s financial instruments that use Level 3 inputs to measure fair value include financial assets measured at fair value through other comprehensive income-equity investments.

The Group’s equity investments without an active market which are classified as Level 3 have numerous unobservable inputs. The significant unobservable inputs of equity instrument investments are not correlated to each other.

(Continued)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Quantified information of significant unobservable inputs was as follows:

Item	Valuation technique Market method (Comparable listed company method) Net asset value method	Significant unobservable inputs Inter-relationship between significant unobservable inputs and fair value measurement ‧ Price to book ratio (0.98~1.82, 0.96~1.75 and 1.08~2.18 as of March 31, 2023, December 31 and March 31, 2022) ‧ Lack of market liquidity discount (10%~30%, 3%~30% and 10%~43% as of March 31, 2023, December 31 and March 31, 2022) ‧ Net Asset Value ‧ The fair value would increase if price to book ratio increase ‧ The fair value would decrease if lack of market liquidity discount increase ‧ The estimated fair value would increase if the net asset value increase
Financial assets at fair value through other comprehensive income - equity investments without an active market

6) Fair value measurements in Level 3 – sensitivity analysis of reasonably possible alternative assumptions

The fair value measurement of financial instruments by the Group is reasonable, but the use of different evaluation models or evaluation parameters may result in different evaluation results. For financial instruments classified as Level 3, changing the price to book ratio or liquidity discount would have the following effects on other comprehensive income:

March 31, 2023 Financial assets at fair value through other comprehensive income December 31, 2022 Financial assets at fair value through other comprehensive income March 31, 2022 Financial assets at fair value through other comprehensive income	Inputs Price to book ratio Liquidity discount Price to book ratio Liquidity discount Price to book ratio Liquidity discount	Increase/ Other comprehensive income Decrease Favorable Unfavorable 10% $ 4,168 (4,168) 10% 24,238 (24,238) 10% 3,538 (3,538) 10% 19,094 (19,094) 10% 939 (939) 10% 21,345 (21,345) (Continued)	Other comprehensive income

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The favorable and unfavorable changes of the Group refer to the fluctuation of fair value, and the fair value is calculated by valuation techniques based on the unobservable input parameters of different degrees.

(ab) Financial risk management

There were no significant changes in the Group’ s financial risk management and policies as disclosed in note 6(ac) of the consolidated financial statements for the year ended December 31, 2022.

(ac) Capital management

Management believes that the objectives, policies and processes of capital management of the Group has been applied consistently with those described in the consolidated financial statements for the year ended December 31, 2022. Please refer to note 6(ad) of the consolidated financial statements for the year ended December 31, 2022 for further details.

(ad) Investing and financing activities not affecting current cash flows

There were no non-cash investing activities for the three months ended March 31, 2023 and 2022. Reconciliation of liabilities arising from non-cash financing activities for the three months ended March 31, 2023 and 2022 were as follows:

Non-cash changes	Non-cash changes	March 31, 2023 19,474
Lease modification Effect of consolidation changes 114 - Non-cash changes
		March 31, 2022
Lease modification 78	Effect of consolidation changes -
		8,482

(7) Related-party transactions

(a) Key management personnel compensation

Short-term employee benefits Post-employment benefits	For the three months ended March 31 2023 2022 $ 8,393 7,827 502 514 $ 8,895 8,341	For the three months ended March 31 2023 2022 $ 8,393 7,827 502 514 $ 8,895 8,341
	2023 $ 8,393 502 $ 8,895
		7,827 514
		8,341

Short-term employee benefits include the estimated employee compensation. Please refer to note 6(z) for the estimated method.

(Continued)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(8) Pledged assets

The carrying amounts of pledged assets were as follows:

Pledged assets	Object	March 31, 2023 $ 7,415 581,585 $ 589,000
Cash in banks (other financial assets) Land, buildings and structures	Performance guarantee Borrowings

(9) Commitments and contingencies

(a) Letter of credit issued but not expired

Letter of credit outstanding for the import of raw materials	March 31, 2023 $ 1,268,000	December 31, 2022 March 31, 2022 936,318 1,122,225 (including USD217 thousand)

(10) Losses due to major disasters: None.

(11) Subsequent events: None.

(12) Other

(a) A summary of employee benefits, depreciation, and amortization, by function, is as follows:

		For the three months ended March 31	For the three months ended March 31	For the three months ended March 31	For the three months ended March 31	For the three months ended March 31
By Function By item		2023		2022
	Operating cost	Operating expense	Total	Operating cost	Operating expense	Total
Employee benefits Salary Labor and health insurance Pension Others Depreciation Amortization	$ 44,004 4,937 2,432 2,665 66,348 322	16,713 1,263 802 2,891 2,925 47	60,717 6,200 3,234 5,556 69,273 369	46,844 4,261 2,334 2,621 66,185 662	23,709 1,227 845 4,141 2,581 46	70,553 5,488 3,179 6,762 68,766 708

(Continued)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements

(13) Other disclosures:

(a) Information on significant transactions

The following is the information on significant transactions required by the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” for the Group for the three months ended March 31, 2023:

(i) Lending to other parties: None.
(ii) Guarantees and endorsements for other parties: None.
(iii) Information regarding securities held at the reporting day (excluding investment in subsidiaries, associates and joint ventures):

(in Thousands of New Taiwan Dollars)

Name of holder	Category and name of security	Relationship with the security issuer	Account	Ending balance	Ending balance	Ending balance	Ending balance
				Shares	Carrying value	Percentage of ownership (%)	Fair value
The Company	Test Research, Inc.	-	Current financial assets at fair value through profit or loss	455,000	28,893	% 0.19	28,893
The Company	Solar Applied Materials Technology Corp.	-	Current financial assets at fair value through profit or loss	2,842,000	103,875	% 0.48	103,875
The Company	Universal Venture Capital Investment Corporation	-	Non-current investment in equity instrument at FVOCI	8,400,000	56,074	% 6.98	56,074
The Company	Global Investment Holding Co., Ltd	-	Non-current investment in equity instrument at FVOCI	10,233,608	88,126	% 5.82	88,126
The Company	Faith Alliance Corporation	-	Non-current investment in equity instrument at FVOCI	25,720	46	% 0.06	46
The Company	Excellence Electronic Co., Ltd.	-	Non-current investment in equity instrument at FVOCI	912	7	% 0.01	7
The Company	Leadwell Cnc Machines Mfg., Corp.	-	Non-current investment in equity instrument at FVOCI	37,352	1,189	% 0.06	1,189
The Company	Crownpo Technology Inc.	-	Non-current investment in equity instrument at FVOCI	709	17	% 0.01	17
The Company	Vxis Technology Corp.	-	Non-current investment in equity instrument at FVOCI	72,480	706	% 0.61	706
The Company	Asia Global Venture Capital II CO., Ltd.	-	Non-current investment in equity instrument at FVOCI	531,300	18,236	% 10.00	18,236
The Company	Shieh Tai Biochemical Technology Co., Ltd	-	Non-current investment in equity instrument at FVOCI	120,339	-	% 0.32	-
The Company	Lof Solar Corp.	-	Non-current investment in equity instrument at FVOCI	600,000	-	% 3.64	-
The Company	Yuan-Jie Investment Co., Ltd.	-	Non-current investment in equity instrument at FVOCI	21,000,000	202,906	% 19.09	202,906
The Company	Yu-Jie Investment Co., Ltd.	-	Non-current investment in equity instrument at FVOCI	21,320,000	245,978	% 19.38	245,978
The Company	Deng Yun Co., Ltd.	-	Non-current investment in equity instrument at FVOCI	591,945	46,675	% 3.09	46,675
The Company	Lidien Inc.	-	Non-current investment in equity instrument at FVOCI	760,000	18,323	% 19.00	18,323
The Company	GVISION-USA, INC.	-	Non-current investment in equity instrument at FVOCI	666,667	20,340	% 19.05	20,340
YSIC Ltd.	OBI Pharma, Inc	-	Current financial assets at fair value through profit or loss	170,032	13,840	% 0.07	13,840
YSIC Ltd.	MPI Corporation	-	Current financial assets at fair value through profit or loss	30,000	4,050	% 0.03	4,050
YSIC Ltd.	Turvo International Co., Ltd.	-	Current financial assets at fair value through profit or loss	20,000	2,300	% 0.03	2,300
YSIC Ltd.	BizLink Holding Inc.	-	Current financial assets at fair value through profit or loss	20,000	5,580	% 0.01	5,580
YSIC Ltd.	Yulon Finance Corporation	-	Current financial assets at fair value through profit or loss	20,000	3,590	% -	3,590
YSIC Ltd.	Lin BioScience, Inc	-	Current financial assets at fair value through profit or loss	60,000	11,010	% 0.08	11,010
YSIC Ltd.	Ingentec Corporation	-	Current financial assets at fair value through profit or loss	20,000	3,580	% 0.05	3,580

(Continued)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements

Name of holder	Category and name of security	Relationship with the security issuer	Account	Ending balance	Ending balance	Ending balance	Ending balance
				Shares	Carrying value	Percentage of ownership (%)	Fair value
YSIC Ltd.	Chip Hope Co., Ltd.	-	Current financial assets at fair value through profit or loss	40,000	4,060	% 0.06	4,060
YSIC Ltd.	China Steel Structure Co.,Ltd.	-	Current financial assets at fair value through profit or loss	20,000	1,176	% 0.01	1,176
YSIC Ltd.	Handa Pharmaceuticals, inc.	-	Current financial assets at fair value through profit or loss	10,000	1,900	% 0.01	1,900
YSIC Ltd.	Advanced International Multitech Co., Ltd.	-	Current financial assets at fair value through profit or loss	10,000	994	% 0.01	994
YSIC Ltd.	Laucnch Technologies Co., Ltd.	-	Current financial assets at fair value through profit or loss	5,000	443	% 0.01	443
YSIC Ltd.	Ememory Technology Inc.	-	Current financial assets at fair value through profit or loss	7,000	13,020	% 0.01	13,020
YSIC Ltd.	Mediatek Inc.	-	Current financial assets at fair value through profit or loss	10,000	7,870	% -	7,870
YSIC Ltd.	Senao Networks, Inc.	-	Current financial assets at fair value through profit or loss	7,000	2,394	% 0.01	2,394
YSIC Ltd.	Yen Sun Technology Corp.	-	Current financial assets at fair value through profit or loss	100,000	3,270	% 0.14	3,270
YSIC Ltd.	Faraday Technology Corp.		Current financial assets at fair value through profit or loss	20,000	3,930	% 0.01	3,930
YSIC Ltd.	Wiwynn Corp.		Current financial assets at fair value through profit or loss	6,000	6,750	% -	6,750
YSIC Ltd.	UPI Semiconductor Corp.	-	Current financial assets at fair value through profit or loss	21,000	6,521	% 0.03	6,521
YSIC Ltd.	Winway Technology Co., Ltd.	-	Current financial assets at fair value through profit or loss	5,000	3,595	% 0.01	3,595
YSIC Ltd.	Shin Kong Chi- Shin Money- Market Fund	-	Current financial assets at fair value through profit or loss	1,800,000	28,364	% -	28,364
YSIC Ltd.	Fubon Taiwan High Dividend 30 ETF	-	Current financial assets at fair value through profit or loss	100,000	1,171	% -	1,171
YSIC Ltd.	Cjw International Co., Ltd.	-	Non-current financial assets at fair value through profit or loss	676,413	8,658	% 0.50	8,658
YSIC Ltd.	Cyca International Co., Ltd.	-	Non-current financial assets at fair value through profit or loss	101,677	-	% -	-
YSIC Ltd.	Mcm Stamping Co., Ltd.	-	Non-current investment in equity instrument at FVOCI	54,430	339	% 0.63	339
YSIC Ltd.	Vxis Technology Corp.		Non-current investment in equity instrument at FVOCI	72,480	707	% 0.61	707
YSIC Ltd.	Yuan-Jie Investment Co., Ltd	-	Non-current investment in equity instrument at FVOCI	100,000	966	% 0.09	966
YSIC Ltd.	Yu-Jie Investment Co., Ltd	-	Non-current investment in equity instrument at FVOCI	103,000	1,188	% 0.09	1,188
Grand Capital Co., Ltd.	Deng Yun Co., Ltd.	-	Non-current investment in equity instrument at FVOCI	3,082,453	243,050	% 16.10	243,050
Yuan Shin Materials Technology Co., Ltd.	Yuanta Financial Holding Co., Ltd.	-	Current financial assets at fair value through profit or loss	309,000	6,906	% -	6,906
Yuan Shin Materials Technology Co., Ltd.	Weikeng Industrial Co., Ltd.	-	Current financial assets at fair value through profit or loss	40,000	1,198	% 0.01	1,198
Yuan Shin Materials Technology Co., Ltd.	Wah Lee Industrial Co., Ltd.	-	Current financial assets at fair value through profit or loss	20,000	1,752	% 0.01	1,752
Yuan Shin Materials Technology Co., Ltd.	China General Plastics Corp.	-	Current financial assets at fair value through profit or loss	50,000	1,315	% 0.01	1,315
Yuan Shin Materials Technology Co., Ltd.	Asustek Computer Inc.	-	Current financial assets at fair value through profit or loss	6,000	1,635	% -	1,635

(Continued)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements

Name of holder	Category and name of security	Relationship with the security issuer	Account	Ending balance	Ending balance	Ending balance	Ending balance
				Shares	Carrying value	Percentage of ownership (%)	Fair value
Yuan Shin Materials Technology Co., Ltd.	Giga-Byte Technology Co., Ltd.	-	Current financial assets at fair value through profit or loss	4,000	534	% -	534
Yuan Shin Materials Technology Co., Ltd.	Supreme Electronics Co., Ltd.	-	Current financial assets at fair value through profit or loss	30,000	1,337	% 0.01	1,337
Yuan Shin Materials Technology Co., Ltd.	Chang Wah Electromaterials Inc.	-	Current financial assets at fair value through profit or loss	5,000	185	% -	185

(iv) Information regarding purchase or sale of securities for the period exceeding NTD300 million or 20% of the Company’s paid-in capital: None
(v) Information on acquisition of real estate with purchase amount exceeding NTD300 million or 20% of the Company’s paid-in capital: None
(vi) Information regarding receivables from disposal of real estate exceeding NTD300 million or 20% of the Company’s paid-in capital: None
(vii) Information regarding related-parties purchases and/or sales exceeding NTD100 million or 20% of the Company’s paid-in capital: None
(viii) Information regarding receivables from related-parties exceeding NTD100 million or 20% of the Company’s paid-in capital: None
(ix) Information regarding trading in derivative financial instruments: Please refer to note 6(b).
(x) Significant transactions and business relationship between the parent company and its subsidiaries for the three months ended March 31, 2023: None
(b) Information on investees:

The following is the information on investees for the three months ended March 31, 2023 (excluding information on investees in Mainland China):

						(In Thousands of New Taiwan Dollar	(In Thousands of New Taiwan Dollar	(In Thousands of New Taiwan Dollar	(In Thousands of New Taiwan Dollar	(In Thousands of New Taiwan Dollar	(In Thousands of New Taiwan Dollar
Name of investor	Name of investee	Location	Main businesses and products	Original investment amount		Balance as of March 31, 2023			Net income (losses) of investee	Share of profits/losses of investee	Note
				March 31, 2023	December 31, 2022	Shares	Percentage of ownership	Carrying value
The Company	Grand Cathay Venture Capital Co., Ltd.	Taiwan	Investment business	400,000	400,000	40,000,000	% 25.00	504,022	71,127	17,782
The Company	Wonderland Enterprise Co., Ltd.	Taiwan	General investment business	325,230	325,230	29,629,597	% 37.04	654,969	(2,520)	(933)
The Company	Functional Coating System Technologies Co., Ltd.	Taiwan	OEM of semiconductor and components conformal coating	28,500	28,500	1,744,186	% 34.88	25,349	(648)	(226)
The Company	Universal Investments Limited	British Cayman Islands	Real estate investment business	17,273	17,273	80	% 40.00	17,610	(105)	(98)
The Company	YSIC Ltd.	Taiwan	General investment, residential building and industrial plant development rental business	1,638,169	1,638,169	72,446,838	% 99.99	923,544	11,922	11,921	Subsidiary
The Company	Yuan-Shin Materials Technology Co. Ltd	Taiwan	Basic precision chemical materials and plastic raw material manufacturing	145,900	145,900	5,000,000	% 100.00	49,984	703	703	Subsidiary
The Company	Yangmingshan Tien Lai Resort & SPA	Taiwan	General hotel industry	630,555	630,555	25,865,618	% 65.07	696,316	8,421	4,901	Subsidiary
YSIC Ltd.	Kun Shan International Ltd.	Seychelles	General investment business	122,572	122,572	3,702,718	% 62.03	202,276	(1,072)	(665)	Subsidiary
YSIC Ltd.	Grand Capital Co., Ltd.	Seychelles	General investment business	90,182	90,182	2,698,002	% 100.00	244,978	78	78	Subsidiary
YSIC Ltd.	Yangmingshan Tien Lai Resort & SPA	Taiwan	General hotel industry	110,836	110,836	4,807,774	% 12.10	119,182	8,421	929	Subsidiary
YSIC Ltd.	Globaltop Technology Inc.	Taiwan	Aluminum Nitride Powder	162,643	162,643	5,255,553	% 23.89	41,502	(7,530)	(1,799)
YSIC Ltd.	Tien Lai Co., Ltd.	Taiwan	Pipe Lines Construction	5,000	5,000	500,000	% 50.00	1,198	(576)	(288)	Subsidiary

(Continued)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements

(c) Information on investment in mainland China:

(i) The names of investees in Mainland China, the main businesses and products, and other information:

					(in Thousands of New Taiwan Dollars) Investment flows Accumulated outflow of Net income Accumulated Outflow Inflow investment from Taiwan as of March 31, 2023 (losses) of the investee (Note 2) Percentage of ownership Investment income (losses) Book value remittance of earnings in current period - - 111,143 (USD 3,650) (Note 4) 3,196 (USD 105) 62.03% 1,983 17,664 - - - (Note 3) 55 (USD 2) 62.03% 34 55,148 -	(in Thousands of New Taiwan Dollars) Investment flows Accumulated outflow of Net income Accumulated Outflow Inflow investment from Taiwan as of March 31, 2023 (losses) of the investee (Note 2) Percentage of ownership Investment income (losses) Book value remittance of earnings in current period - - 111,143 (USD 3,650) (Note 4) 3,196 (USD 105) 62.03% 1,983 17,664 - - - (Note 3) 55 (USD 2) 62.03% 34 55,148 -	(in Thousands of New Taiwan Dollars) Investment flows Accumulated outflow of Net income Accumulated Outflow Inflow investment from Taiwan as of March 31, 2023 (losses) of the investee (Note 2) Percentage of ownership Investment income (losses) Book value remittance of earnings in current period - - 111,143 (USD 3,650) (Note 4) 3,196 (USD 105) 62.03% 1,983 17,664 - - - (Note 3) 55 (USD 2) 62.03% 34 55,148 -	(in Thousands of New Taiwan Dollars) Investment flows Accumulated outflow of Net income Accumulated Outflow Inflow investment from Taiwan as of March 31, 2023 (losses) of the investee (Note 2) Percentage of ownership Investment income (losses) Book value remittance of earnings in current period - - 111,143 (USD 3,650) (Note 4) 3,196 (USD 105) 62.03% 1,983 17,664 - - - (Note 3) 55 (USD 2) 62.03% 34 55,148 -	(in Thousands of New Taiwan Dollars) Investment flows Accumulated outflow of Net income Accumulated Outflow Inflow investment from Taiwan as of March 31, 2023 (losses) of the investee (Note 2) Percentage of ownership Investment income (losses) Book value remittance of earnings in current period - - 111,143 (USD 3,650) (Note 4) 3,196 (USD 105) 62.03% 1,983 17,664 - - - (Note 3) 55 (USD 2) 62.03% 34 55,148 -	(in Thousands of New Taiwan Dollars) Investment flows Accumulated outflow of Net income Accumulated Outflow Inflow investment from Taiwan as of March 31, 2023 (losses) of the investee (Note 2) Percentage of ownership Investment income (losses) Book value remittance of earnings in current period - - 111,143 (USD 3,650) (Note 4) 3,196 (USD 105) 62.03% 1,983 17,664 - - - (Note 3) 55 (USD 2) 62.03% 34 55,148 -	(in Thousands of New Taiwan Dollars) Investment flows Accumulated outflow of Net income Accumulated Outflow Inflow investment from Taiwan as of March 31, 2023 (losses) of the investee (Note 2) Percentage of ownership Investment income (losses) Book value remittance of earnings in current period - - 111,143 (USD 3,650) (Note 4) 3,196 (USD 105) 62.03% 1,983 17,664 - - - (Note 3) 55 (USD 2) 62.03% 34 55,148 -	(in Thousands of New Taiwan Dollars) Investment flows Accumulated outflow of Net income Accumulated Outflow Inflow investment from Taiwan as of March 31, 2023 (losses) of the investee (Note 2) Percentage of ownership Investment income (losses) Book value remittance of earnings in current period - - 111,143 (USD 3,650) (Note 4) 3,196 (USD 105) 62.03% 1,983 17,664 - - - (Note 3) 55 (USD 2) 62.03% 34 55,148 -
Name of investee	Main businesses and products	Total amount of paid-in capital	Method of investment (Note 1)	Accumulated outflow of investment from Taiwan as of January 1, 2023	Investment flows		Accumulated outflow of investment from Taiwan as of March 31, 2023	Net income (losses) of the investee (Note 2)	Percentage of ownership	Investment income (losses)	Book value	Accumulated remittance of earnings in current period
					Outflow	Inflow
Kun Shan Yu-Fu Technology Education Consulting Co., Ltd.	Educational consulting, information operation consulting, software and data storage consultation	3,045 (USD 100)	( 2 )	111,143 (USD 3,650)	-	-	111,143 (USD 3,650) (Note 4)	3,196 (USD 105)	62.03%	1,983	17,664	-
Kun Shan Jia-An Technology Education Consulting Co., Ltd.	Educational consulting, information operation consulting, software and data storage consultation	74,042 (USD 2,432)	( 2 )	(Note 3)	-	-	(Note 3)	55 (USD 2)	62.03%	34	55,148	-

Note1: The investment methods are divided into the following three types: (1) Direct investment in Mainland China. (2) Indirect investment in Mainland China through a holding company established in other countries. (3) Others.

Note2: The foreign currency transactions have been translated into New Taiwan Dollar at the exchange rate at the end of the financial reporting date and the average exchange rate (USD1= NTD30.45, USD1=NTD30.365).

Note3: Kun Shan Yu-Fu Technology Education Consulting Co., Ltd. had been spun-off as Kun Shan Yu-Fu Technology Education Consulting Co., Ltd. and Kun Shan JiaAn Technology Education Consulting Co., Ltd.

Note4:The amount of US$2,089 thousand were proceeds of KUN SHAN INTERNATIONAL LTD. due to capital reduction of Kun Shan Yu-Fu Technology Education Consulting Co., Ltd. in 2022 has yet to be remitted to Taiwan, therefore, the amount of accumulated investment in Mainland China still included the amount.

(ii) Upper limit on investment in Mainland China:

Accumulated Investment in Mainland China as of March 31, 2023	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment (Note)
111,143 (note 4) (USD 3,650)	111,143 (USD 3,650)	554,204

Note: The investment limit was calculated based on the official document 10804600980 announced by the MOEAIC on March 12, 2019.

(iii) Significant inter-company transactions with the subsidiary in Mainland China: None.

(d) Major shareholders:

Shareholding Shareholder’s Name	Shares	Percentage
Taiwan Steel Group United Co., Ltd.	41,794,000	% 7.91
Frank.C. Chen Foundation for Culture and Education	28,750,000	% 5.44

(Continued)

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(14) Segment information:

(a) General information
(i) Plasticization segment: manufacturing and domestic/international sales of styrene monomer, manufacturing and sales of chemical materials and plastic materials.
(ii) Investment segment: investment business.
(iii) Other segment: the revenues of the segments that have not reached the quantitative threshold are hotel and general service business.

The Group’s operating segment information and reconciliation are as follows:

For the three months ended March 31, 2023	For the three months ended March 31, 2023	For the three months ended March 31, 2023	For the three months ended March 31, 2023	Total 2,318,484 - 2,318,484 (4,451)
Plasticization segment 2,250,970 - 2,250,970 (12,955)	Investment segment Other segments Reconciliation and elimination 17,227 50,287 - 972 1,120 (2,092) 18,199 51,407 (2,092) 18,190 9,436 (19,122) For the three months ended March 31, 2022
Plasticization segment $ 3,490,758 - $ 3,490,758 $ 105,027	Investment segment (106) 762 656 131,948	Other segments 44,962 979 45,941 7,898	Reconciliation and elimination	Total 3,535,614 - 3,535,614 179,176
			- (1,741) (1,741) (65,697)

AI assistant

T.S.M.C. — Interim / Quarterly Report 2023

51769_rns_2023-12-27_bbb2c1fe-0614-42e3-9130-0775a4cb7a9a.pdf

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Consolidated Financial Statements

Table of contents

KPMG

Independent Auditors’ Review Report

Introduction

Scope of Review

Basis for Qualified Conclusion

Qualified Conclusion

KPMG

Notes to Readers

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets

March 31, 2023, December 31 and March 31, 2022

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Reviewed only, not audited in accordance with Standards on Auditing

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

For the three months ended March 31, 2023 and 2022

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Reviewed only, not audited in accordance with Standards on Auditing

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Reviewed only, not audited in accordance with Standards on Auditing TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the three months ended March 31, 2023 and 2022

(Expressed in Thousands of New Taiwan Dollars)

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Reviewed only, not audited in accordance with Standards on Auditing TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows (Continued) For the three months ended March 31, 2023 and 2022

Notes to the Consolidated Financial Statements

March 31, 2023 and 2022

(1) Company history

(2) Approval date and procedures of the consolidated financial statements

(3) New standards, amendments and interpretations adopted

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(4) Summary of significant accounting policies

(a) Statement of compliance

(b) Basis of consolidation

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(c) Employee benefits

(d) Income taxes

(5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(6) Explanation of significant accounts

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Pledge to secure

(j) Property, plant and equipment

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(k) Right-of-use assets

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(l) Investment property

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(m) Intangible assets

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(p) Short-term borrowings

(q) Other payables

(r) Long-term borrowings

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(s) Lease liabilities

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(t) Employee benefits

(i) Defined benefit plans

(ii) Defined contribution plans

(u) Income tax

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(v) Capital and other equity

(i) Capital surplus

(ii) Retained earnings

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(w) Earnings per share

(i) Basic earnings per share

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Contract balances

TAIWAN STYRENE MONOMER CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(iii) Finance costs

T.S.M.C. Interim / Quarterly Report 2023