TTET — Audit Report / Information 2023

Dec 26, 2023

TTET UNION CORPORATION

PARENT COMPANY ONLY FINANCIAL

STATEMENTS AND INDEPENDENT AUDITORS’

REPORT DECEMBER 31, 2023 AND 2022

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

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INDEPENDENT AUDITORS’ REPORT TRANSLATED FROM CHINESE

To the Board of Directors and Shareholders of TTET Union Corporation

Opinion

We have audited the accompanying parent company only balance sheets of TTET Union Corporation (the “Company”) as at December 31, 2023 and 2022, and the related parent company only statements of comprehensive income, of changes in equity and of cash flows for the years then ended, and notes to the parent company only financial statements, including a summary of material accounting policies.

In our opinion, the accompanying parent company only financial statements present fairly, in all material respects, the financial position of the Company as at December 31, 2023 and 2022, and its financial performance and its cash flows for the years then ended in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers”.

Basis for opinion

We conducted our audits in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors’ responsibilities for the audit of the parent company only financial statements section of our report. We are independent of the Company in accordance with the Norm of Professional Ethics for Certified Public Accountant in the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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Key audit matters

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

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

Cut-off of inventory in transit

Description

The Company imports soybean from foreign suppliers as raw material. The term of trade is C&F which means the seller delivers the goods at the port of loading. The Company will confirm the information about loading date, quantity, pricing and other details with suppliers. After receiving the bill of lading, invoice, bank debit and other related source documents, the Company can recognize those materials as inventory. However, due to the complexity of the import process and paper work, the source documents may not be received on time which will result in inappropriate inventory recognition. In addition, the goods in transit have significant value. Thus, we considered the cut-off of inventory in transit a key audit matter.

How our audit addressed the matter

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

1. Understood the process of importing raw material and checked the source documents as basis of inventory recognition.

2. Tested the purchase transactions that took place after the balance sheet date, by inspecting the bill of lading or bank debit, to ensure the purchase was recognized in the correct reporting period.

3. Confirmed the borrowing amount of loan and the letter of credit with the banks.

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Inventory valuation

Description

Refer to Notes 4(8) and 6(4) to the parent company only financial statements for the accounting policy and the details of accounts relating to inventory valuation. As at December 31, 2023, inventory and allowance for market price decline amounted to $2,763,691 thousand and $9,622 thousand, respectively, with the net amount constituting 45% of total assets.

The Company is engaged in the manufacture, sales and processing of a variety of vegetable oil and fat. The main raw material is soybean and it is usually affected by price changes in international trade. This results in higher risk of loss on market price decline. The inventories are estimated at the lower of cost and net realizable value. As the raw material is usually affected by price changes in international trade and the value of inventories is significant, we considered inventory valuation a key audit matter.

How our audit addressed the matter

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

1. Evaluated the reasonableness of accounting policy on provision for inventory, and the consistency of process application during the financial reporting period.

2. Tested the details of loss on market price decline, recalculated the net realizable value of the selected inventories, inspected related documents and discussed with management to confirm the adequacy of the provision on inventory market price decline.

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

Management is responsible for the preparation and fair presentation of the parent company only financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and for such internal control as management determines is necessary to enable the preparation of parent company only financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the parent company only financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

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

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

statements

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

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

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

2. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.

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

4. Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the parent company only financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Company to cease to continue as a going concern.

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

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1. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the parent company only financial statements. We are responsible for the direction, supervision and performance of the audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance (including audit committee) regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance (including audit committee) with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

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

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Yeh, Fang-Ting

Independent Accountants

Lin, Tzu-Shu

PricewaterhouseCoopers, Taiwan

Republic of China February 23, 2024

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

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

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TTET UNION CORPORATION

PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2023 AND 2022

(Expressed in thousands of New Taiwan dollars)

Assets	Notes 6(1) 6(3) 6(3) 6(3) and 7 5(2) and 6(4) 6(5) 6(6) 6(7)(9) and 8 6(8) 6(7)(9) 6(22) 6(11)	December 31, 2023 AMOUNT % $ 1,249,911 21 135,986 2 434,354 7 117,122 2 8,543 - 2,754,069 45 139,803 2 4,839,788 79 78,483 1 628,750 10 515,256 9 13,688 - 1,514 - 14,104 - 9,013 - 29,352 1 1,290,160 21 $ 6,129,948 100	December 31, 2022	December 31, 2022
		AMOUNT $ 1,249,911 135,986 434,354 117,122 8,543 2,754,069 139,803 4,839,788 78,483 628,750 515,256 13,688 1,514 14,104 9,013 29,352 1,290,160 $ 6,129,948	AMOUNT $ 697,639 163,213 512,849 146,620 25,133 3,172,957 156,530 4,874,941 56,819 489,596 549,518 23,962 1,259 20,121 9,649 28,357 1,179,281 $ 6,054,222	%
Current assets 1100 Cash and cash equivalents 1150 Notes receivable, net 1170 Accounts receivable, net 1180 Accounts receivable - related parties 1200 Other receivables 130X Inventory 1410 Prepayments 11XX Total current assets Non-current assets 1517 Financial assets at fair value through other comprehensive income - non- current 1550 Investments accounted for under equity method 1600 Property, plant and equipment 1755 Right-of-use assets 1780 Intangible assets 1840 Deferred income tax assets 1920 Guarantee deposits paid 1975 Net defined benefit asset - non- current 15XX Total non-current assets 1XXX Total assets				12 3 9 2 - 52 3
				81
				1 8 9 - - - - 1
				19
				100

(Continued)

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TTET UNION CORPORATION

PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2023 AND 2022

(Expressed in thousands of New Taiwan dollars)

Liabilities and Equity	December 31, 2023 December 31, 2022 Notes AMOUNT % AMOUNT % 6(10) $ - - $ 3,600 - 6(2) and 12 8,641 - 168 - 6(15) 14,252 - 59,642 1 5,027 - 5,007 - 101,376 2 228,401 4 7 30,319 1 33,202 - 290,726 5 251,340 4 6(22) 253,136 4 283,396 5 6(8) 9,800 - 773 - 713,277 12 865,529 14 6(22) 12,332 - 12,106 - 6(8) 4,293 - 23,792 1 1,780 - 2,089 - 18,405 - 37,987 1 731,682 12 903,516 15 6(12) 1,599,749 26 1,599,749 27 6(13) 23,784 - 23,784 - 6(14) 1,708,264 28 1,583,042 26 5,858 - 5,528 - 2,064,290 34 1,944,461 32 ( 3,679) - ( 5,858) - 5,398,266 88 5,150,706 85 9 $ 6,129,948 100 $ 6,054,222 100	December 31, 2022	December 31, 2022
			%
Current liabilities 2100 Short-term borrowings 2120 Financial liabilities at fair value through profit or loss - current 2130 Current contract liabilities 2150 Notes payable 2170 Accounts payable 2180 Accounts payable - related parties 2200 Other payables 2230 Current income tax liabilities 2280 Lease liabilities - current 21XX Total current liabilities Non-current liabilities 2570 Deferred income tax liabilities 2580 Lease liabilities - non-current 2645 Guarantee deposits received 25XX Total non-current liabilities 2XXX Total liabilities Equity Share capital 3110 Common stock 3200 Capital surplus Retained earnings 3310 Legal reserve 3320 Special reserve 3350 Unappropriated retained earnings 3400 Other equity interest 3XXX Total equity Significant contingent liabilities and unrecognized contract commitments 3X2X Total liabilities and equity			- - 1 - 4 - 4 5 -
			14
			- 1 -
			1
			15
			27 - 26 - 32 -
			85
			100

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

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TTET UNION CORPORATION

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022

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

Items

Year ended December 31 2023 2022 Notes AMOUNT % AMOUNT % 6(15) and 7 $ 18,488,138 100 $ 20,217,008 100 6(4)(9)(11)(20)(21) and 7 ( 16,870,346) ( 91) ( 18,585,819) ( 92) 1,617,792 9 1,631,189 8 6(9)(11)(20)(21) and 7 ( 234,204) ( 1) ( 238,527) ( 1) ( 170,260) ( 1) ( 173,523) ( 1) ( 9,315) - ( 9,435) - 12 358 - ( 702) - ( 413,421) ( 2) ( 422,187) ( 2) 1,204,371 7 1,209,002 6 6(16) 10,695 - 4,619 - 6(5)(17) 13,388 - 13,601 - 6(2)(8)(18) and 12 37,930 - 109,786 - 6(8)(19) ( 3,033) - ( 4,440) - 6(6) 198,865 1 169,185 1 257,845 1 292,751 1 1,462,216 8 1,501,753 7 6(22) ( 257,365) ( 1) ( 275,548) ( 1) $ 1,204,851 7 $ 1,226,205 6 6(11) ($ 137) - $ 29,931 - 6(5) 1,449 - ( 330) - 6(6) 489 - 2,067 - 6(22) 28 - ( 5,986) - 6(5) 730 - - - $ 2,559 - $ 25,682 - $ 1,207,410 7 $ 1,251,887 6 6(23) $ 7.53 $ 7.66 $ 7.52 $ 7.65

4000 Operating revenue 5000 Operating costs 5900 Net operating margin Operating expenses 6100 Selling expenses 6200 General and administrative expenses 6300 Research and development expenses 6450 Expected credit gains (losses) 6000 Total operating expenses 6900 Operating profit Non-operating income and expenses 7100 Interest income 7010 Other income 7020 Other gains and losses 7050 Finance costs 7070 Share of profit of subsidiaries, associates and joint ventures accounted for under equity method, net 7000 Total non-operating income and expenses 7900 Profit before income tax 7950 Income tax expense 8200 Profit for the year Other comprehensive income (loss) Components of other comprehensive income (loss) that will not be reclassified to profit or loss 8311 Remeasurements of defined benefit obligation 8316 Unrealised gains (losses) from investments in equity instruments measured at fair value through other comprehensive income 8330 Share of other comprehensive income of subsidiaries, associates and joint ventures accounted for using equity method 8349 Income tax related to components of other comprehensive income that will not be reclassified to profit or loss Components of other comprehensive income that will be reclassified to profit or loss 8367 Unrealised gains on valuation of investments in debt instruments measured at fair value through other comprehensive income, net 8300 Other comprehensive income for the year 8500 Total comprehensive income for the year Earnings per share (in dollars) 9750 Basic 9850 Diluted

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

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TTET UNION CORPORATION

PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022

(Expressed in thousands of New Taiwan dollars)

Year ended December 31, 2022 Balance at January 1, 2022 Net income for 2022 Other comprehensive income (loss) for 2022 Total comprehensive income (loss) for 2022 Distribution of 2021 net income: Legal reserve Cash dividends Reversal of special reserve Balance at December 31, 2022 Year ended December 31, 2023 Balance at January 1, 2023 Net income for 2023 Other comprehensive income for 2023 Total comprehensive income for 2023 Distribution of 2022 net income: Legal reserve Special reserve Cash dividends Balance at December 31, 2023	Notes		Share capital - common stock		Capital surplus			Retained earnings	Retained earnings	Retained earnings	Other equity		Total equity
							Legal reserve		Special reserve	Unappropriated retained earnings	Unrealised gains (losses) from financial assets measured at fair value through other comprehensive income
	6(5) 6(14) 6(5) 6(14)		$ 1,599,749 - - - - - - $ 1,599,749 $ 1,599,749 - - - - - - $ 1,599,749		$ 23,784 - - - - - - $ 23,784 $ 23,784 - - - - - - $ 23,784		$ 1,456,732 - - - 126,310 - - $ 1,583,042 $ 1,583,042 - - - 125,222 - - $ 1,708,264	$ 7,000 - - - - - ( 1,472) $ 5,528 $ 5,528 - - - - 330 - $ 5,858		$ 1,776,932 1,226,205 26,012 1,252,217 ( 126,310 ) ( 959,850 ) 1,472 $ 1,944,461 $ 1,944,461 1,204,851 380 1,205,231 ( 125,222 ) ( 330 ) ( 959,850 ) $ 2,064,290	($ 5,528) - ( 330) ( 330) - - - ($ 5,858) ($ 5,858) - 2,179 2,179 - - - ($ 3,679)	$ 4,858,669 1,226,205 25,682 1,251,887 - ( 959,850 ) - $ 5,150,706 $ 5,150,706 1,204,851 2,559 1,207,410 - - ( 959,850 ) $ 5,398,266

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

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TTET UNION CORPORATION

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax Adjustments Adjustments to reconcile profit (loss) Loss on financial assets at fair value through profit or loss Expected credit (gains) losses (Reversal of allowance) provision for inventory market price decline Share of profit of subsidiaries, associates and joint ventures accounted for under equity method Depreciation Loss on disposal of property, plant and equipment Property, plant and equipment recognized as expense Gain from lease modification Amortization Dividend income Interest income Finance costs Changes in operating assets and liabilities Changes in operating assets Notes receivable Accounts receivable Accounts receivable - related parties Other receivables Inventories Prepayments Net defined benefit asset - non-current Changes in operating liabilities Current contract liabilities Notes payable Accounts payable Accounts payable - related parties Other payables Net defined benefit liabilities - non-current Cash inflow generated from operations Dividends received from investment accounted for under equity method Dividends received Interest received Interest paid Income tax paid Net cash flows from operating activities

YearendedDecember 31 Notes 2023 2022 $ 1,462,216 $ 1,501,753 8,473 148 12 ( 358 ) 702 6(4) ( 38,986 ) 47,890 6(6) ( 198,865 ) ( 169,185 ) 6(7)(8)(20) 139,670 139,092 6(18) 356 - 6(7) 14,114 12,867 6(8)(18) - ( 85 ) 6(9)(20) 477 605 6(5)(17) ( 2,693 ) ( 2,351 ) 6(16) ( 10,695 ) ( 4,619 ) 6(19) 3,033 4,440 27,288 ( 25,660 ) 78,792 ( 215,861 ) 29,498 ( 43,013 ) 16,590 ( 11,033 ) 457,874 ( 1,001,844 ) 16,727 185,599 ( 1,132 ) 1,574 ( 45,390 ) 30,191 20 219 ( 127,025 ) ( 79,613 ) ( 2,883 ) ( 11,868 ) 39,387 ( 24,650 ) - ( 1,847 ) 1,866,488 333,451 6(6) 60,200 84,280 2,693 2,351 10,695 4,619 ( 3,034 ) ( 4,443 ) ( 281,354 ) ( 286,860 ) 1,655,688 133,398

(Continued)

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TTET UNION CORPORATION

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of financial assets at fair value through other comprehensive income Acquisition of property, plant and equipment Increase in intangible assets Decrease (increase) in guarantee deposits paid Net cash flows used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Decrease in short-term borrowings Repayments of lease principal (Decrease) increase in guarantee deposit received Payment of cash dividends Net cash flows used in financing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year

YearendedDecember 31 Notes 2023 2022 ($ 19,485 ) ($ 19,549 ) 6(7) ( 110,184 ) ( 102,820 ) 6(9) ( 152 ) ( 952 ) 636 ( 5,036 ) ( 129,185 ) ( 128,357 ) 6(25) ( 3,600 ) ( 41,916 ) 6(25) ( 10,472 ) ( 11,431 ) 6(25) ( 309 ) 329 6(14) ( 959,850 ) ( 959,850 ) ( 974,231 ) ( 1,012,868 ) 552,272 ( 1,007,827 ) 6(1) 697,639 1,705,466 6(1) $ 1,249,911 $ 697,639

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

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TTET UNION CORPORATION

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022

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

1. HISTORY AND ORGANIZATION

• (1) TTET Union Corporation (the “Company”) was incorporated as a company limited by shares under the provisions of the Company Act of the Republic of China (R.O.C.) on May 24, 1982. The Company is primarily engaged in the manufacture, sales, processing, import and export of a variety of vegetable oils and engaged in cogeneration plant business, etc.

• (2) The common shares of the Company have been listed on the Taiwan Stock Exchange since February 1996.

• THE DATE OF AUTHORIZATION FOR ISSUANCE OF THE FINANCIAL STATEMENTS AND

PROCEDURES FOR AUTHORIZATION

These parent company only financial statements were authorized for issuance by the Board of Directors on February 23, 2024.

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

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

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

Supervisory Commission (“FSC”) New standards, interpretations and amendments endorsed by FSC and are as follows:	became effective from 202
New Standards, Interpretations and Amendments	Effective date by International Accounting StandardsBoard (“IASB”)
Amendments to IAS 1, ‘Disclosure of accounting policies’ Amendments to IAS 8, ‘Definition of accounting estimates’ Amendments to IAS 12, ‘Deferred tax related to assets and liabilities arising from a single transaction’ Amendments to IAS 12, ‘International tax reform - pillar two model rules’	January 1, 2023 January 1, 2023 January 1, 2023 May 23, 2023

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

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

not yet adopted by the Company

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

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Effective date by
New Standards, Interpretations and Amendments IASB
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New Standards, Interpretations and Amendments	Effective date by IASB
Amendments to IFRS 16, ‘Lease liability in a sale and leaseback’	January 1, 2024
Amendments to IAS 1, ‘Classification of liabilities as current or	January 1, 2024
non-current’
Amendments to IAS 1, ‘Non-current liabilities with covenants’	January 1, 2024
Amendments to IAS 7 and IFRS 7, ‘Supplier finance arrangements’	January 1, 2024

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

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

New standards, interpretations and amendments issued by IASB but not yet included in the IFRS Accounting Standards as endorsed by the FSC are as follows:

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

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

4. SUMMARY OF MATERIAL ACCOUNTING POLICIES

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

(1) Compliance statement

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

• (2) Basis of preparation

• A. Except for the following items, the parent company only financial statements have been prepared under the historical cost convention:

  • (a)Financial assets and financial liabilities (including derivative instruments) at fair value through profit or loss.

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  - (b)Financial assets at fair value through other comprehensive income measured at fair value.

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

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

• (3) Foreign currency translation

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

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

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

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

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

• (4) Classification of current and non-current items

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

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

  • (b) Assets held mainly for trading purposes;

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

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

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

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

  • (b) Liabilities arising mainly from trading activities;

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

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

• (5) Cash equivalents

• A. Cash equivalents refer to short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

• B. Time deposits and commercial paper that meet the definition above and are held for the purpose of meeting short-term cash commitments in operations are classified as cash equivalents.

• (6) Financial assets at fair value through profit or loss

• A. Financial assets at fair value through profit or loss are financial assets that are not measured at amortized cost or fair value through other comprehensive income.

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

• C. At initial recognition, the Company measures the financial assets at fair value and recognizes the transaction costs in profit or loss. The Company subsequently measures the financial assets at fair value, and recognizes the gain or loss in profit or loss.

• (7) Accounts and notes receivable

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

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

• (8) Inventories

• Cost is determined using the weighted-average method. The cost of finished goods and work in process comprises raw materials, direct labor, other direct costs and related production overheads (allocated based on normal operating capacity). It excludes borrowing costs. Inventories are stated at the lower of cost and net realizable value. The item by item approach is used in applying the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated cost of completion and the estimated costs necessary to make the sale.

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When the cost of inventories exceeds the net realizable value, the amount of any write-down of inventories is recognized as cost of sales during the period; and the amount of any reversal of inventory write-down is recognized as a reduction in cost of sales during the period.

(9) Financial assets at fair value through other comprehensive income

• A. Financial assets at fair value through other comprehensive income comprise equity securities which are not held for trading, and for which the Company has made an irrevocable election at initial recognition to recognize changes in fair value in other comprehensive income and debt instruments which meet all of the following criteria:

• (a) The objective of the Company’s business model is achieved both by collecting contractual cash flows and selling financial assets; and

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

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

• C. At initial recognition, the Company measures the financial assets at fair value plus transaction costs. The Company subsequently measures the financial assets at fair value:

• (a) The changes in fair value of equity investments that were recognized in other comprehensive income are reclassified to retained earnings and are not reclassified to profit or loss following the derecognition of the investment. Dividends are recognized as revenue when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Company and the amount of the dividend can be measured reliably.

• (b) Except for the recognition of impairment loss, interest income and gain or loss on foreign exchange which are recognized in profit or loss, the changes in fair value of debt instruments are taken through other comprehensive income. When the financial asset is derecognized, the cumulative gain or loss previously recognized in other comprehensive income is reclassified from equity to profit or loss.

(10) Impairment of financial assets

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

(11) Derecognition of financial assets

The Company derecognizes a financial asset when one of the following conditions is met:

• A. The contractual rights to receive cash flows from the financial asset expire.

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• B. The contractual rights to receive cash flows from the financial asset have been transferred and the Company has transferred substantially all risks and rewards of ownership of the financial asset.

• C. The contractual rights to receive cash flows from the financial asset have been transferred and the Company has not retained control of the financial asset.

• (12) Investments accounted for under equity method / associates

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

• B. Unrealized gains or losses between the Company and its subsidiaries are eliminated. Necessary adjustments are made to the accounting policies of subsidiaries, to be consistent with the accounting policies of the Company.

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

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

• (13) Property, plant and equipment

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

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

• C. Property, plant and equipment apply the cost model. Except for land, other property, plant and equipment are depreciated using the straight-line method to allocate their cost over their estimated useful lives. If each component of property, plant and equipment is significant, it is depreciated separately.

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

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Asset Useful lives
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Asset	Useful lives
Buildings	2~40 years
Machinery	2~25 years
Transportation equipment	2~12 years
Other equipment	2~19 years

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

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

• B. Lease liabilities include the net present value of the remaining lease payments at the commencement date, discounted using the incremental borrowing interest rate. Lease payments are comprised of the following:

• (a) Fixed payments, less any lease incentives receivable; and

• (b) Payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option.

The Company subsequently measures the lease liability at amortized cost using the interest method and recognizes interest expense over the lease term. The lease liability is remeasured and the amount of remeasurement is recognized as an adjustment to the right-of-use asset when there are changes in the lease term or lease payments and such changes do not arise from contract modifications.

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

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

• (c) Any initial direct costs incurred by the lessee; and

• (d) An estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease.

The right-of-use asset is measured subsequently using the cost model and is depreciated from the commencement date to the earlier of the end of the asset’s useful life or the end of the lease term.

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When the lease liability is remeasured, the amount of remeasurement is recognized as an adjustment to the right-of-use asset.

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

(15) Intangible assets

• Computer software and trademarks are stated at cost and amortized on a straight-line basis over their estimated useful life of 3~10 years.

(16) Impairment of non-financial assets

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

(17) Borrowings

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

• B. Fees paid on the establishment of loan facilities are recognized as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the drawdown occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalized as a pre-payment for liquidity services and amortized over the period of the facility to which it relates.

(18) Financial liabilities at fair value through profit or loss

• A. Financial liabilities are classified in this category of held for trading if acquired principally for the purpose of repurchasing in the short-term. Derivatives are also categorized as financial liabilities held for trading unless they are designated as hedges. Financial liabilities that meet one of the following criteria are designated as at fair value through profit or loss at initial recognition: (a) Hybrid (combined) contracts; or

• (b) They eliminate or significantly reduce a measurement or recognition inconsistency; or

• (c) They are managed and their performance is evaluated on a fair value basis, in accordance with a documented risk management policy.

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• B. At initial recognition, the Company measures the financial liabilities at fair value. All related transaction costs are recognized in profit or loss. The Company subsequently measures these financial liabilities at fair value with any gain or loss recognized in profit or loss.

(19) Accounts payable

Accounts payable are liabilities for purchases of raw materials, goods or services. The short-term accounts payable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

(20) Derecognition of financial liabilities

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

(21) Offsetting financial instruments

Financial assets and liabilities are offset and reported in the net amount in the balance sheet when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realized the asset and settle the liability simultaneously.

(22) Employee benefits

• A. Short-term employee benefits

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

• B. Pensions

• (a) Defined contribution plan

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

• (b) Defined benefit plan

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

  • II. Remeasurement arising on defined benefit plan is recognized in other comprehensive income in the period in which they arise and are recorded as retained earnings.

• C. Employees’ compensation and directors’ remuneration

• Employees’ compensation and directors’ remuneration are recognized as expenses and liabilities, provided that such recognition is required under legal or constructive obligation and those

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amounts can be reliably estimated. Any difference between the resolved amounts and the subsequently actual distributed amounts is accounted for as changes in estimates. If employees’ compensation is distributed by shares, the Company calculated the number of shares based on the closing market price at the previous day of the board meeting resolution.

• (23) Income tax

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

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

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

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

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

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(24) Dividends

Dividends are recorded in the Company’s financial statements in the period in which they are approved by the Company’s shareholders. Cash dividends are recorded as liabilities.

• (25) Revenue recognition

• A. Sales of merchandise and finished goods

  • (a) Sales are recognized when control of the products has transferred, being when the products are delivered to the client, the client has full discretion over the channel and price to sell the products, and there is no unfulfilled obligation that could affect the client’s acceptance of the products.

  • (b) Revenue from these sales is recognized based on the price specified in the contract, net of the estimated output tax, sales returns, and sales discounts and allowances. Accumulated experience is used to estimate and provide for the sales discounts and allowances, using the expected value method, and revenue is only recognized to the extent that it is highly probable that a significant reversal will not occur. The estimation is subject to an assessment at each reporting date. A refund liability is recognized for expected sales discounts and allowances payable to customers in relation to sales made until the end of the reporting period. No element of financing is deemed present as the sales are made with a credit term of 7~ 45 days. As the time interval between the transfer of committed goods or service and the payment of customer does not exceed one year, the Company does not adjust the transaction price to reflect the time value of money.

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

• B. Sales of services

The Company provides processing services. Revenue from processing services is recognized under the percentage-of-completion method when the outcome of services provided can be estimated reliably. The stage of completion of a service contract is measured by the percentage of the actual services performed as of the financial reporting date to the total services to be performed. If the outcome of a service contract cannot be estimated reliably, contract revenue should be recognized only to the extent that contract costs incurred are likely to be recoverable.

5. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF ASSUMPTION UNCERTAINTY

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

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• (1) Critical judgments in applying the Company’s accounting policies None.

• (2) Critical accounting estimates and assumptions

  • Evaluation of inventories

  • A. As inventories are stated at the lower of cost and net realizable value, the Company must determine the net realizable value of inventories on balance sheet date using judgements and estimates. Due to fluctuations in the price of international soybean futures, the Company evaluates the amounts of market price decline due to price fluctuations, and writes down the cost of inventories to the net realizable value. Such an evaluation of inventories is principally based on the estimated selling price of the inventory on the measurement date. Therefore, there might be material changes to the evaluation.

  • B. As of December 31, 2023, the carrying amount of inventories was $2,754,069.

• DETAILS OF SIGNIFICANT ACCOUNTS

• (1) Cash and cash equivalents

Cash: Cash on hand Checking accounts and demand deposits Cash equivalents: Time deposits Commercial paper	December31,2023 December 31, 2022 282 $ 488 $ 350,464 337,458 350,746 337,946 400,000 - 499,165 359,693 899,165 359,693 1,249,911 $ 697,639 $

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

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

(2) Financial assets and liabilities at fair value through profit or loss - current

2022. Financial assets and liabilities at fair value through	profit or loss-current
Financial liabilities held for trading Non-hedging derivatives	December31,2023 8,641 $	December31,2022
		168 $

• A. The Company recognized net gain (shown as “Other gains and losses”) on financial assets and liabilities mandatorily measured at fair value amounting to $26,582 and $110,795 for the years ended December 31, 2023 and 2022, respectively.

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• B. The Company entered into contracts relating to derivative financial liabilities which were not accounted for under hedge accounting. The information is listed below:

accounted for under hedge accounting. The	information is listed below:	information is listed below:
Derivativeinstruments Current liability items: Forward foreign exchange contracts Derivative instruments Current liability items: Forward foreign exchange contracts	Contract amount (Notionalprincipal) Contract period USD 21,000 thousand 2023.12.5~2024.2.19 Contract amount (Notionalprincipal) Contract period USD 146 thousand 2022.11.9~2023.1.5 December31,2023 December31,2022
		2022.11.9~2023.1.5

The Company entered into forward foreign exchange contracts to hedge exchange rate risk of import proceeds. However, these forward foreign exchange contracts are not accounted for under hedge accounting.

• C. Information relating to credit risk of financial assets and liabilities at fair value through profit or loss is provided in Note 12(2).

(3) Notes and accounts receivable

loss is provided in Note 12(2). Notes and accounts receivable
			December31,2023			December 31, 2022
Notes receivable		$	136,252		$	163,540
Less: Allowance for uncollectible accounts	(		266)	(		327)
		$	135,986		$	163,213
			December 31, 2023			December31,2022
Accounts receivable		$	436,102		$	514,894
Accounts receivable - related parties			117,122			146,620
			553,224			661,514
Less: Allowance for uncollectible accounts	(		1,748)	(		2,045)
		$	551,476		$	659,469

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A. The ageing analysis of notes receivable and accounts receivable is as follows:

Notes receivable Not past due 136,252 $ Less than 30 days - 31~60 days - 61~90 days - 91~Over 120 days - 136,252 $ December	Accounts Notes Accounts receivable receivable receivable 553,224 $ 163,540 $ 661,514 $ - - - - - - - - - - - - 553,224 $ 163,540 $ 661,514 $ 31,2023 December31,2022

The above ageing analysis was based on past due date.

• B. As of December 31, 2023 and 2022, accounts receivable and notes receivable were all from contracts with customers. As of January 1, 2022, the balance of receivables from contracts with customers amounted to $540,520.

• C. As at December 31, 2023 and 2022, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the Company’s notes and accounts receivable was the book value.

• D. The Company holds certificates of time deposit and land as security for accounts receivable as of December 31, 2023 and 2022.

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

• F. Information relating to credit risk of accounts receivable and notes receivable is provided in Note 12(2).

(4) Inventories

12(2). Inventories
Merchandise Raw materials Raw materials in transit Supplies Work in progress Work in progress in transit Finished goods		December31,2023
	Cost 3,337 $ 421,900 1,380,511 18,005 250,374 11,199 678,365 2,763,691 $	Allowance for market price decline - $ 8,553) ( - 553) ( - - 516) ( 9,622) ($	Bookvalue
			3,337 $ 413,347 1,380,511 17,452 250,374 11,199 677,849
			2,754,069 $

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December 31, 2022

Merchandise Raw materials Raw materials in transit Supplies Work in progress Finished goods	Cost 7,916 $ 495,736 1,612,832 21,994 278,842 804,245 3,221,565 $	Allowance for market price decline Bookvalue 35) ($ 7,881 $ - 495,736 - 1,612,832 53) ( 21,941 - 278,842 48,520) ( 755,725 48,608) ($ 3,172,957 $

The cost of inventories recognized as expense for the year:

			Forthe years ended	Forthe years ended	December31,
			2023		2022
Cost of goods sold		$	16,543,384	$	18,215,002
(Reversal of allowance) provision for
inventory market price decline (Note)	(		38,986)		47,890
Loss (gain) on physical inventory			966	(	2,167)
Loss on scrapped inventories			580		1,724
		$	16,505,944	$	18,262,449

(Note) The Company recognized gain from price recovery as the increase in the international prices of raw materials led to a recovery in inventory net realizable value for the year ended December 31, 2023.

(5) Financial assets at fair value through other comprehensive income - non-current

			December31,2023			December31,2022
Equity instruments
Listed stocks		$	67,551		$	54,402
Unlisted stocks			8,275			8,275
			75,826			62,677
Valuation adjustment	(		4,409)	(		5,858)
			71,417			56,819
Debt instruments
Beneficiary certificates			6,336			-
Valuation adjustment			730			-
			7,066			-
		$	78,483		$	56,819

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• A. The Company has elected to classify equity investments that are considered to be strategic investments and have steady dividend income as financial assets at fair value through other comprehensive income. The fair value of such investments amounted to $78,483 and $56,819 at December 31, 2023 and 2022, respectively.

• B. The Company recognized other comprehensive income in relation to financial assets at fair value through other comprehensive income amounting to $2,179 and ($330) for the years ended December 31, 2023 and 2022, respectively.

• C. The Company recognized dividend income in relation to financial assets at fair value through other comprehensive income amounting to $2,693 and $2,351 for the years ended December 31, 2023 and 2022, respectively.

• D. As at December 31, 2023 and 2022, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the financial assets at fair value through other comprehensive income held by the Company was the book value.

• E. The Company has no financial assets at fair value through other comprehensive income pledged to others.

• F. Information relating to credit risk of financial assets at fair value through other comprehensive income is provided in Note 12(2).

(6) Investments accounted for under equity method

Movement of investments accounted for under equity method is as follows:

			For the years ended	For the years ended	For the years ended	December 31,
			2023			2022
At January 1		$	489,596		$	402,624
Share of profit of investments accounted for under			198,865			169,185
equity method
Earnings distribution of investments accounted for	(		60,200)	(		84,280)
under equity method
Changes in other equity items			489			2,067
At December 31		$	628,750		$	489,596
			December31,2023			December31,2022
Subsidiaries		$	628,750		$	489,596

• A.For information relating to the Company’s subsidiaries, refer to Note 4(3), ‘Basis of consolidation’ of the Company and its subsidiaries’ consolidated financial statements for the year ended December 31, 2023.

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

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(7) Property, plant and equipment

January1,2023 Cost Accumulated depreciation For the year ended December31,2023 At January 1 Additions Transferred after acceptance Depreciation Disposals-Cost -Accumulated depreciaton Reclassified to intangible assets Expensed At December 31 December 31, 2023 Cost Accumulated depreciation	Land 44,244 $ - 44,244 $ 44,244 $ - - - - - - - 44,244 $ 44,244 $ - 44,244 $	Buildings Machinery 941,901 $ 3,525,997 $ 796,600) ( 3,194,194) ( 145,301 $ 331,803 $ 145,301 $ 331,803 $ 3,924 45,709 1,542 43,049 25,483) ( 100,417) ( - 2,217) ( - 1,861 - - - - 125,284 $ 319,788 $ 947,367 $ 3,612,538 $ 822,083) ( 3,292,750) ( 125,284 $ 319,788 $	Transportation equipment	Other equipment
			11,947 $ 11,145) ( 802 $ 802 $ - - 131) ( - - - - 671 $ 11,947 $ 11,276) ( 671 $	55,530 $ 41,272) ( 14,258 $ 14,258 $ 723 3,410 3,365) ( 162) ( 162 - - 15,026 $ 59,501 $ 44,475) ( 15,026 $

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January1,2022 Cost Accumulated depreciation For the year ended December31,2022 At January 1 Additions Transferred after acceptance Depreciation Disposals-Cost -Accumulated depreciaton Expensed At December 31 December31,2022 Cost Accumulated depreciation	Land 44,244 $ - 44,244 $ 44,244 $ - - - - - - 44,244 $ 44,244 $ - 44,244 $	Buildings Machinery 935,313 $ 3,451,978 $ 770,134) ( 3,098,967) ( 165,179 $ 353,011 $ 165,179 $ 353,011 $ 5,888 48,786 700 27,312 26,466) ( 97,306) ( - 2,079) ( - 2,079 - - 145,301 $ 331,803 $ 941,901 $ 3,525,997 $ 796,600) ( 3,194,194) ( 145,301 $ 331,803 $	Transportation equipment	Other equipment
			11,947 $ 10,966) ( 981 $ 981 $ - - 179) ( - - - 802 $ 11,947 $ 11,145) ( 802 $	53,209 $ 38,219) ( 14,990 $ 14,990 $ 2,070 772 3,574) ( 521) ( 521 - 14,258 $ 55,530 $ 41,272) ( 14,258 $

• A. The Company’s property, plant and equipment are all owner-occupied as at December 31, 2023 and 2022.

• B. The Company has not capitalized any interest for the years ended December 31, 2023 and 2022.

• C. For more information regarding the Company’s property, plant and equipment pledged to others as at December 31, 2023 and 2022, refer to Note 8, “Pledged assets”.

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－ (8) Leasing arrangements lessee

• A. The Company leases various assets including buildings and transportation equipment. Rental contracts are typically made for periods of 1 to 6 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose covenants, but leased assets may not be used as security for borrowing purposes.

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

Buildings Transportation equipment Buildings Transportation equipment	December31,2023 December31,2022 Carryingamount Carryingamount 12,154 $ 21,039 $ 1,534 2,923 13,688 $ 23,962 $ Forthe years endedDecember31,	December31,2022 Carryingamount 21,039 $ 2,923 23,962 $
	2023 Depreciationcharge 8,885 $ 1,389 10,274 $	2022
		Depreciation charge
		8,885 $ 2,682
		11,567 $

• －

• C. For the years ended December 31, 2023 and 2022, the additions to right-of-use assets were $ and $3,768, respectively.

• D. The information on income and expense accounts relating to lease contracts is as follows:

Items affecting profit or loss Interest expense on lease liabilities Expense on short-term lease contracts Gain from lease modification	For the years ended December 31,
	2023 2022 166 $ 276 $ 83 78 - 85) (

• E. For the years ended December 31, 2023 and 2022, the Company’s total cash outflow for leases were $10,721 and $11,785, respectively.

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(9) Intangible assets

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For the years ended December 31,
2023 2022
At January 1
Cost $ 10,021 $ 9,069
Accumulated amortization ( 8,762) ( 8,157)
$ 1,259 $ 912
For the year ended December 31
At January 1 $ 1,259 $ 912
－
Additions acquired separately 152 952
Transferred from property, plant and equipment 580 -
Amortization charge ( 477) ( 605)
At December 31 $ 1,514 $ 1,259
At December 31
Cost $ 10,753 $ 10,021
Accumulated amortization ( 9,239) ( 8,762)
$ 1,514 $ 1,259
Details of amortization on intangible assets are as follows:
For the years ended December 31,
2023 2022
Operating costs $ 88 $ 43
Selling expenses 265 207
Administrative expenses 124 355
$ 477 $ 605
Short-term borrowings -term borrowings term borrowings
December 31, 2022 Interest rate Collateral
Bank unsecured borrowings $ 3,600 5.18% None
----- End of picture text -----

(10) Short-term borrowings -term borrowings term borrowings

There was no such situation as of December 31, 2023.

For interest expense recognized in profit or loss for the years ended December 31, 2023 and 2022, refer to Note 6(19).

(11) Pensions

A. The Company has a defined benefit pension plan in accordance with the Labor Standards Law, covering all regular employees’ service years prior to the enforcement of the Labor Pension Act on July 1, 2005 and service years thereafter of employees who chose to continue to be subject to the pension mechanism under the Law. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement. In

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～ 2022, the Company contributes monthly an amount equal to 2% 2.5% of the employees’ monthly salaries and wages to the retirement fund deposited with Bank of Taiwan, under the name of the independent retirement fund committee. Also, the Company would assess the balance in the aforementioned labor pension reserve account by December 31, every year. If the account balance is not enough to pay the pension calculated by the aforementioned method to the employees expected to qualify for retirement in the following year, the Company will make contribution for the deficit by next March. The information on the Company’s defined benefit pension plan is as follows:

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

		December 31, 2023		December31,2022
Present value of defined benefit obligations	($	203,690)	($	205,328)
Fair value of plan assets		233,042		233,685
Net defined benefit asset	$	29,352	$	28,357

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

For the year ended December 31, 2023 Balance at January 1 Current service cost Interest (expense) income Remeasurements: Return on plan assets (excluding amounts included in interest income or expense) Change in financial assumptions Experience adjustments Pension fund contribution Paid pension Balance at December 31	Present value of defined benefit obligations		Fair value of planassets	Net defined benefit asset
	205,328) ($ 820) ( 2,497) ( 208,645) ( - 765) ( 1,490) ( 2,255) ( - 7,210 203,690) ($	233,685 $ - 2,860 236,545 2,118 - - 2,118 1,589 7,210) ( 233,042 $		28,357 $ 820) ( 363 27,900 2,118 765) ( 1,490) ( 137) ( 1,589 - 29,352 $

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For the year ended December 31, 2022 Balance at January 1 Current service cost Interest (expense) income Remeasurements: Return on plan assets (excluding amounts included in interest income or expense) Change in financial assumptions Experience adjustments Pension fund contribution Paid pension Balance at December 31	Present value of defined benefit obligations
	227,008) ($ 1,346) ( 1,566) ( 229,920) ( - 9,331 3,214 12,545 - 12,047 205,328) ($

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

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

The principal actuarial assumptions	used were as follows:
	Forthe years endedDecember31,
	2023 2022
Discount rate	1.20% 1.25%
Future salary increases	2.00% 2.00%

For the years ended December 31, 2023 and 2022, assumptions regarding future mortality experience are set based on actuarial advice in accordance with Taiwan Life Insurance Industry 6th Mortality Table.

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

obligation is affected. The analysis was as follows:	obligation is affected. The analysis was as follows:	obligation is affected. The analysis was as follows:
Increase 0.25% Decrease 0.25% December31,2023 Effect on present value of defined benefit obligation 3,780) ($ 3,889 $ December31,2022 Effect on present value of defined benefit obligation 4,042) ($ 4,165 $ Discountrate			Future salaryincreases
			Increase 0.25%		Decrease 0.25%
		3,889 $ 4,165 $		3,849 $ 4,123 $	3,760) ($ 4,023) ($

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

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

• (e)Expected contributions to the defined benefit pension plan of the Company for the year ending December 31, 2024 amount to $1,441.

• (f) As of December 31, 2023, the weighted average duration of the retirement plan is 7 years. The analysis of timing of the future pension payment was as follows:

Within 1 year 2-5 years Over 6 years	8,995 $ 57,753 156,110
	222,858 $

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

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Company for the years ended December 31, 2023 and 2022 were $4,542 and $4,456, respectively.

• (12) Share capital

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

	Forthe years endedDecember31,
	2023 2022
Beginning and ending balance	159,975 159,975

• B. As of December 31, 2023, the Company’s authorized capital was $1,778,000 and the paid-in capital was $1,599,749, consisting of 159,975 thousand shares of ordinary stock, with a par value of $10 (in dollars) per share. All proceeds from shares issued have been collected.

(13) Capital surplus

• Pursuant to the Company Act, capital surplus arising from paid-in capital in excess of par value on issuance of common stocks and donations can be used to cover accumulated deficit or to issue new stocks or cash to shareholders in proportion to their share ownership, provided that the Company has no accumulated deficit. Further, the Securities and Exchange Act requires that the amount of capital surplus to be capitalized mentioned above should not exceed 10% of the paid-in capital each year. Capital surplus should not be used to cover accumulated deficit unless the legal reserve is insufficient. Movements of the Company’s capital surplus for the years ended December 31, 2023 and 2022 are as follows:

Beginning and ending balance Beginning and ending balance	Treasury share Share premium transactions Total 154 $ 23,630 $ 23,784 $ Forthe yearendedDecember31,2023 Forthe yearendedDecember31,2022	Treasury share Share premium transactions Total 154 $ 23,630 $ 23,784 $ Forthe yearendedDecember31,2023 Forthe yearendedDecember31,2022	Treasury share Share premium transactions Total 154 $ 23,630 $ 23,784 $ Forthe yearendedDecember31,2023 Forthe yearendedDecember31,2022
	Sharepremium 154 $	Treasury share transactions 23,630 $	Total
			23,784 $

(14) Retained earnings

• A. Pursuant to the Company Act, the current year’s after-tax earnings should set aside 10% of the remaining earnings as legal reserve until the balance of legal reserve is equal to that of paid-in capital. Except for covering accumulated deficit or issuing new stocks or cash to shareholders in proportion to their share ownership, the legal reserve shall not be used for any other purpose. The use of legal reserve for the issuance of stocks or cash to shareholders in proportion to their share ownership is permitted, provided that the distribution of the reserve is limited to the portion in excess of 25% of the Company’s paid-in capital.

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• B. According to the Company's Articles of Incorporation, 10% of the annual net income, after offsetting any loss of prior years and paying all taxes and dues, shall be set aside as legal reserve, and set aside or reverse special reserve. The remaining net income and the unappropriated retained earnings from prior years can be distributed in accordance with a resolution passed during a meeting of the Board of Directors and approved at the stockholders' meeting. Of the amount to be distributed by the Company, stockholders’ dividends shall comprise 50% to 100% of the unappropriated retained earnings. Since the Company is in a changeable industry environment and the life cycle of the Company is in a stable growth, the appropriation of earnings should consider fund requirements and capital budgets to decide how much earnings will be kept or distributed and how much cash dividends will be distributed. The percentage of stock dividends shall not be more than 50% of dividends distributed.

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

• D. For the years ended December 31, 2023 and 2022, the Company distributed cash dividends both amounting to $959,850 ($6 (in dollars) per share). On February 23, 2024, the Board of Directors proposed for the distribution of dividends from 2023 earnings in the amount of $1,055,834 at $6.6 (in dollars) per share.

(15) Operating revenue

$6.6 (in dollars) per share. Operating revenue
Revenue from contracts with customers	Forthe years endedDecember31,
	2023 18,488,138 $	2022
		20,217,008 $

• A. Disaggregation of revenue from contracts with customers

The Company derives revenue from the transfer of goods and services over time and at a point in time in the following major product lines:

Sales revenue Processing revenue Timing of revenue recognition At a point in time Over time	Forthe years endedDecember31,	Forthe years endedDecember31,
	2023 18,021,390 $ 466,748 18,488,138 $ 18,021,390 $ 466,748 18,488,138 $	2022
		19,764,037 $ 452,971
		20,217,008 $
		19,764,037 $ 452,971
		20,217,008 $

B. Contract liabilities

• (a) As of December 31, 2023, December 31, 2022 and January 1, 2022, the Company has recognized the revenue-related liabilities amounting to $14,252, $59,642 and $29,451,

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respectively.

• (b) Revenue recognized that were included in the contract liabilities balance at the beginning of 2023 and 2022 amounted to $59,642 and $29,449, respectively.

(16) Interest income

Interest income from bank deposits Other interest income

	For theyears ended	For theyears ended	December31,
	2023		2022
$	3,619	$	1,217
	7,076		3,402
$	10,695	$	4,619

(17) Other income

Dividend income Other income

(18) Other gains and losses

Net gain on financial assets at fair value through profit or loss Net currency exchange gain Loss on disposals of property, plant and equipment Gain from lease modification Other losses

		For the years ended	For the years ended	For the years ended	December 31,
		2023			2022
	$	2,693		$	2,351
		10,695			11,250
	$	13,388		$	13,601
		For the years ended			December 31,
		2023			2022
	$	26,582		$	110,795
		11,704			81
(		356)			-
		-			85
		-	(		1,175)
	$	37,930		$	109,786

(19) Finance costs

Interest expense Bank borrowings Interest expense on lease liabilities

For theyears ended December31,	For theyears ended December31,
2023 2,867 $ 166 3,033 $	2022
	4,164 $ 276
	4,440 $

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(20) Expenses by nature

Expenses by nature
Employee benefit expense Depreciation Amortization	Operating cost		2023 For		Total Operating cost Operating expense Total 315,955 $ 116,689 $ 203,079 $ 319,768 $ 139,670 $ 121,131 $ 17,961 $ 139,092 $ 477 $ 43 $ 562 $ 605 $ 2022 the years endedDecember31,
			Operating expense
	113,598 $ 123,200 $ 88 $		202,357 $ 16,470 $ 389 $

(21) Employee benefit expense

Wages and salaries Labor and health insurance expense Pension costs Directors’ remuneration Other personnel expenses	Operating cost	For 2023	For 2023	Total Operating cost 252,436 $ 106,107 $ 15,230 5,821 4,999 2,730 29,760 - 13,530 2,031 315,955 $ 116,689 $ the years ended December	Total Operating cost 252,436 $ 106,107 $ 15,230 5,821 4,999 2,730 29,760 - 13,530 2,031 315,955 $ 116,689 $ the years ended December	31, 2022	31, 2022	Total
		Operating expense			Operating cost		Operating expense 148,265 $ 9,319 3,078 30,330 12,087 203,079 $
	103,150 $ 5,848 2,564 - 2,036 113,598 $	149,286 $ 9,382 2,435 29,760 11,494 202,357 $			106,107 $ 5,821 2,730 - 2,031 116,689 $			254,372 $ 15,140 5,808 30,330 14,118 319,768 $

• A. As of December 31, 2023 and 2022, the Company had 156 employees, including 10 nonemployee directors for both years.

• B. For the years ended December 31, 2023 and 2022, the average employee benefit expense were $1,960 and $1,982, respectively.

• C. For the years ended December 31, 2023 and 2022, the average wages and salaries were $1,729 and $1,742, respectively.

• D. For the year ended December 31, 2023, the adjustment of average employee salary rate was (0.75%).

• E. For the tasks carried out by the Company’s directors, the Company may pay remunerations; the remunerations are to be enforced in compliance with the Company’s internal management system and to be paid according to the industry criteria. The Company’s remuneration policy is established according to personal capabilities, contribution to the Company's operating results, and salary standard for the position held and is positively correlated to the management performance. The overall compensation includes the basic salary, prize and welfare. About the standard of payment, basic salary is determined according to the market value of the position held, prize is determined according to the fulfilled goals or corporate management performance, and welfare refers to sound welfare measures designed as required by laws and regulations and

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reflective of personal needs.

• F. According to the Articles of Incorporation of the Company, a ratio of distributable profit of the current year, after covering accumulated losses, shall be distributed as employees’ compensation and directors’ and supervisors’ remuneration. The ratio shall not be lower than 2% for employees’ compensation and shall not be higher than 2% for directors’ and supervisors’ remuneration.

• G. For the years ended December 31, 2023 and 2022, employees’ compensation were accrued at $30,360 and $31,200, respectively; while directors’ remuneration were accrued at $22,840 and $23,400, respectively. The aforementioned amounts were recognized in salary expenses and accrued based on the distributable net profit of current year and the percentage prescribed under the Articles of Incorporation of the Company. On February 23, 2024, the employees’ compensation and directors’ remuneration as resolved by the Board of Directors were $30,308 and $22,731, respectively, and the employees’ compensation will be distributed in the form of cash. The actual amount resolved by the Board of Directors for employees’ compensation and directors’ remuneration for 2022 was $54,472, which is different from the estimated amount recognized in the 2022 financial statements of $54,600, by ($128). Such difference was recognized in profit and loss for the year ended December 31, 2023. Information about employees’ compensation and directors’ remuneration of the Company as proposed by the board of directors and resolved by the Board of Directors will be posted in the “Market Observation Post System” at the website of the Taiwan Stock Exchange.

• (22) Income tax

• A. Income tax expense

  • (a) Components of income tax expense:

e tax ome tax expense Components of income tax expense:
			Forthe years endedDecember31,
			2023	2022
Current tax:
Current tax on profits for the year		$	245,861	$	274,931
Tax on undistributed earnings			8,341		8,921
Prior year income tax (over) under
estimation	(		3,108)		584
Total current tax			251,094		284,436
Deferred tax:
Origination and reversal of temporary
differences			6,271	(	8,888)
Income tax expense		$	257,365	$	275,548

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

		Forthe years endedDecember31,	Forthe years endedDecember31,
		2023	2022
Remeasurement of defined
benefit obligations	($	28)	$	5,986

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B. Reconciliation between income tax expense and accounting profit

			Forthe years ended	Forthe years ended	Forthe years ended	December31,
			2023			2022
Tax calculated based on profit before tax
and statutory tax rate		$	292,443		$	300,350
Effects from items disallowed by tax
regulation	(		40,311)	(		34,307)
Tax on undistributed earnings			8,341			8,921
Prior year income tax (over) under
estimation	(		3,108)			584
Income tax expense		$	257,365		$	275,548

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

Amounts of deferred tax assets or liabilities as a result of temporary differences are as follows:	Amounts of deferred tax assets or liabilities as a result of temporary differences are as follows:	Amounts of deferred tax assets or liabilities as a result of temporary differences are as follows:
Recognized in Recognized in other comprehensive January1 profit or loss income December31 Temporary differences: Deferred tax assets: Allowance for doubtful accounts 944 $ - $ - $ 944 $ Unrealized loss on inventory market value decline 9,721 7,797) ( - 1,924 Unrealized expense 1,337 58 - 1,395 Unrealized loss on financial assets and liabilities 34 1,694 - 1,728 Actuarial loss 8,085 - 28 8,113 20,121 $ 6,045) ($ 28 $ 14,104 $ Deferred tax liabilities: Pensions 12,106) ($ 226) ($ - $ 12,332) ($ 8,015 $ 6,271) ($ 28 $ 1,772 $ Forthe yearendedDecember31,2023
	Recognized in other comprehensive income - $ - - - 28 28 $ - $ 28 $
		944 $ 1,924 1,395 1,728 8,113 14,104 $ 12,332) ($ 1,772 $

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For the year ended December 31, 2022

Recognized in Recognized in other comprehensive January1 profit or loss income Temporary differences: Deferred tax assets: Allowance for doubtful accounts 944 $ - $ - $ Unrealized loss on inventory market value decline 143 9,578 - Unrealized expense 2,009 672) ( - Unrealized loss on financial assets and liabilities 4 30 - Actuarial loss 14,071 - 5,986) ( 17,171 $ 8,936 $ 5,986) ($ Deferred tax liabilities: Pensions 12,051) ( 55) ( - Unrealized exchange gain 7) ( 7 - 12,058) ($ 48) ($ - $ 5,113 $ 8,888 $ 5,986) ($		December31
	944 $ 9,721 1,337 34 8,085 20,121 $ 12,106) ( - 12,106) ($ 8,015 $

D. As of February 23, 2024, the Company’s income tax returns through 2021 have been assessed by the Tax Authority, and there were no disputes existing between the Company and the Tax Authority.

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(23) Earnings per share

Earnings per share
Basic earnings per share Profit attributable to ordinary shareholders Diluted earnings per share Profit attributable to ordinary shareholders Assumed conversion of all dilutive potential ordinary shares Employees’ compensation Profit attributable to ordinary shareholders plus assumed conversion of all dilutive potential ordinary shares Basic earnings per share Profit attributable to ordinary shareholders Diluted earnings per share Profit attributable to ordinary shareholders Assumed conversion of all dilutive potential ordinary shares Employees’ compensation Profit attributable to ordinary shareholders plus assumed conversion of all dilutive potential ordinary shares	Weighted average number of ordinary shares outstanding Earnings per share Amount aftertax (sharesinthousands) (indollars) 1,204,851 $ 159,975 7.53 $ 1,204,851 $ 159,975 - 260 1,204,851 $ 160,235 7.52 $ For theyear ended December31,2023 For theyear ended December31,2022
	Weighted average number of ordinary shares outstanding Amount after tax (shares in thousands) 1,226,205 $ 159,975 1,226,205 $ 159,975 - 262 1,226,205 $ 160,237	Earnings per share (in dollars) 7.66 $ 7.65 $

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(24) Supplemental cash flow information

A. Investing activities with no cash flow effects:

Supplemental cash flow information A. Investing activities with no cash flow effects:	Supplemental cash flow information A. Investing activities with no cash flow effects:	Supplemental cash flow information A. Investing activities with no cash flow effects:	Supplemental cash flow information A. Investing activities with no cash flow effects:	Supplemental cash flow information A. Investing activities with no cash flow effects:	Supplemental cash flow information A. Investing activities with no cash flow effects:
Changes in liabilities from financing activities 2023 2022 Property, plant and equipment reclassified to intangible assets 580 $ - $ Forthe years endedDecember31, Short-term borrowings Lease liabilities Guarantee deposits received Liabilities from financing activities-gross At January 1, 2023 3,600 $ 24,565 $ 2,089 $ 30,254 $ Changes in cash flow from financing activities 3,600) ( 10,472) ( 309) ( 14,381) ( At December 31, 2023 - $ 14,093 $ 1,780 $ 15,873 $ Short-term borrowings Lease liabilities Guarantee deposits received Liabilities from financing activities-gross At January 1, 2022 45,516 $ 38,946 $ 1,760 $ 86,222 $ Increase in lease liabilities - 3,768 - 3,768 Decrease in lease liabilities - 6,718) ( - 6,718) ( Changes in cash flow from financing activities 41,916) ( 11,431) ( 329 53,018) ( At December 31, 2022 3,600 $ 24,565 $ 2,089 $ 30,254 $
At January 1, 2023 Changes in cash flow from financing activities At December 31, 2023 At January 1, 2022 Increase in lease liabilities Decrease in lease liabilities Changes in cash flow from financing activities At December 31, 2022	Short-term borrowings
	3,600 $ 3,600) ( - $ Short-term borrowings	24,565 $ 10,472) ( 14,093 $ Lease liabilities			30,254 $ 14,381) ( 15,873 $ Liabilities from financing activities-gross
	45,516 $ - - 41,916) ( 3,600 $	38,946 $ 3,768 6,718) ( 11,431) ( 24,565 $		1,760 $ - - 329 2,089 $	86,222 $ 3,768 6,718) ( 53,018) ( 30,254 $

(25) Changes in liabilities from financing activities

7. RELATED PARTY TRANSACTIONS

(1) Names of related parties and relationship

Names of related parties Uni-President Enterprises Corp. Great Wall Enterprise Co., Ltd. Tai Hwa Oil Industrial Co., Ltd. May Lan Lei Co., Ltd. Total Nutrition Technologies Co., Ltd. Ton-Yi Industrial Corp. President Nisshin Corp. Uni-President Vender Corp. Weilih Food Industrial Co., Ltd.

Master Channels Corporation

Relationship with the Company Key management individuals

" "

An entity controlled by key management individuals " " " "

Investee of key management individual accounted for under the equity method Subsidiary

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(2) Significant related party transactions

A. Sales and processing revenue

gnificant related party transactions Sales and processing revenue
		Forthe years ended		December31,
		2023		2022
Sales of merchandise and finished goods:
－Key management individuals	$	290,671	$	431,771
－Subsidiaries		342,933		327,489
－An entity controlled by key
management individuals		426,262		419,632
－Investee of key management
individual accounted for
under the equity method		6,909		7,623
		1,066,775		1,186,515
Processing revenue:
－May Lan Lei Co., Ltd.		359,609		346,084
－Tai Hwa Oil Industrial Co., Ltd.		92,999		91,257
－Other entities controlled by key
management individuals		13,748		14,989
－Other key management individuals		392		641
		466,748		452,971
	$	1,533,523	$	1,639,486

The collection period for related parties was 7~45 days after sales of goods, 10~45 days for sales to regular customers. The price was the same for related and third parties. The terms of providing processing services to related parties were the same with regular customers. The above related parties close their accounts at the end of each month and made payment within 15 days after. The pricing depends on the contract and management methods.

B. Purchases

Purchases
An entity controlled by key management individuals Key management individuals	For theyears ended December31,
	2023 383,027 $ 208,176 591,203 $	2022
		385,885 $ 36,448
		422,333 $

The terms of purchases and payments are made in 15~30 days after receipt to related parties which were the same with third party suppliers, except for an entity controlled by key management individuals, wherein payments are made in 12~25 days after receipt. The price was the same for related and third parties.

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C. Accounts receivable

Key management individuals An entity controlled by key management individuals Subsidiaries Investee of key management individual accounted for under the equity method	December31,2023 December31,2022 22,219 $ 71,743 $ 55,937 40,503 37,973 34,374 993 - 117,122 $ 146,620 $

D. Accounts payable

December31,2023 Ton-Yi Industrial Corp. 30,319 $	December31,2022
	33,202 $

• (3) Key management compensation

Salaries and other short-term employee benefits	2023 2022 75,840 $ 75,787 $ Forthe years endedDecember31,

8. PLEDGED ASSETS

The Company’s assets pledged as collateral were as follows:

Assets pledged Land (Note 1) Buildings, net (Note 1)	December 31, 2023 December31,2022 Purpose of collateral - $ 44,244 $ (Note 2) - 80,440 〞 - $ 124,684 $ Book Value
	December 31, 2023 - $ - - $

(Note 1) Recognized as “Property, plant, and equipment”.

(Note 2) The associated debt has been repaid but the designation of ‘ Property, plant, and equipment’ as collateral has not yet been removed.

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACT

COMMITMENTS

• (1) As of December 31, 2023 and 2022, the unused letters of credit amounted to $1,154,033 and $1,315,612, respectively.

• (2) Capital expenditures contracted for but not yet incurred

December 31, 2023 December 31, 2022 Property, plant and equipment $ 44,026 $ 42,443

10. SIGNIFICANT DISASTER LOSS

None.

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11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

None.

12. OTHERS

(1) Capital management

The Company’s objectives when managing capital are to safeguard the Company’s ability to continue as a going concern in order to provide returns for shareholders, and maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

(2) Financial instruments

• A. Financial instruments by category

Details of financial instruments by category of the Company are described in Note 6.

• B. Financial risk management policies

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

• (b) Company treasury identifies, evaluates and hedges financial risks in close cooperation with the Company’s operating units.

• (c) Information about derivative financial instruments that are used to hedge certain exchange rate risk are provided in Note 6(2).

• C. Significant financial risks and degrees of financial risks

• (a) Market risk

  • I. Foreign exchange risk

    • (i) Some purchases and sales are valued in US dollars, therefore the fair value changes with market exchange rate.

    • (ii) Management has set up a policy to require the Company to manage the foreign exchange risk against the functional currency. The Company hedges foreign exchange rate by using forward exchange contracts. However, the Company does not adopt hedging accounting. Details of financial assets or liabilities at fair value through profit or loss are provided in Note 6(2).

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

(Foreign currency: functional currency) Financial assets Monetary items USD : NTD (Foreign currency: functional currency) Financial assets Monetary items USD : NTD Financial liabilities Monetary items USD : NTD	Foreign currency amount (inthousands) Exchangerate 110 $ 30.755 December31,2023 Foreign currency amount (inthousands) Exchangerate 67 $ 30.76 117 30.76 December31,2022	Bookvalue 3,397 $ Bookvalue
		2,073 $ 3,600

• (iv) As of December 31, 2023 and 2022, if the NTD:USD exchange rate appreciates/ depreciates by 1% with all other factors remaining constant, the after-tax profit for the years ended December 31, 2023 and 2022 would increase/decrease by $27 and $12, respectively.

• (v) The unrealized exchange gain arising from significant foreign exchange variation on monetary items held by the Company for the years ended December 31, 2023 and 2022 both amounted to $ － .

II. Price risk

The Company’s equity securities, which are exposed to price risk, are the held financial assets at fair value through other comprehensive income. To manage its price risk arising from investments in equity securities, the Company has set various stop loss points to ensure that the Company is not exposed to significant market risks.

The Company’s invests in equity securities comprise unlisted stocks. The prices of equity securities would change due to the change of the future value of investee companies. If the prices of these equity securities had increased/decreased by 2% with all other variables

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held constant, other components of equity for the years ended December 31, 2023 and 2022 would have increased/decreased by $1,570 and $1,136, respectively, as a result of other comprehensive income classified as equity investment at fair value through other comprehensive income.

• III. Cash flow and fair value interest rate risk

  • If the borrowing interest rate had increased/decreased by 1% with all other variables held constant, there is no significant effect on after-tax profit for the years ended December 31, 2023 and 2022.

• (b) Credit risk

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

• II. The Company manages its credit risk taking into consideration the Company’s concern. For banks and financial institutions, only independently rated parties with a certain rating are accepted. According to the Company’s credit policy, the Company is responsible for managing and analyzing the credit risk for each of their new clients before standard payment and delivery terms and conditions are offered. Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings in accordance with limits set by the Board of Directors. The utilization of credit limits is regularly monitored.

• III. The Company adopts the following assumption under IFRS 9 to assess whether there has been a significant increase in credit risk on that instrument since initial recognition: If the contract payments were past due over 30 days based on the terms, there has been a significant increase in credit risk on that instrument since initial recognition.

• IV. The Company adopts the assumption under IFRS 9, whereby the default occurs when the contract payments are past due over 90 days.

• V. The Company wrote-off financial assets, which cannot be reasonably expected to be recovered, after initiating recourse procedures. However, the Company will continue executing the recourse procedures to secure their rights.

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• VI. The Company classifies customers’ accounts receivable in accordance with credit risk on trade. The Company applies the simplified approach using the provision matrix to estimate expected credit loss. The Company uses the forecastability of Taiwan Institute of Economic Research boom observation report to adjust historical and timely information to assess the default possibility of accounts receivable, and expected loss rate range is 0.3% to 100%. Movements in relation to the Company applying the simplified approach to provide loss allowance for accounts receivable are as follows:

For the year ended December 31, 2023

			Notesreceivable	Accountsreceivable	Accountsreceivable	Accountsreceivable			Total
At January 1		$	327		$	2,045		$	2,372
Reversal of impairment	(		61)	(		297)	(		358)
At December 31		$	266		$	1,748		$	2,014
			Forthe year	endedDecember31,2022
			Notesreceivable	Accountsreceivable					Total
At January 1		$	345		$	1,325		$	1,670
(Reversal of) provision
for impairment	(		18)			720			702
At December 31		$	327		$	2,045		$	2,372

(c) Liquidity risk

• I. Cash flow forecasting is performed in Finance Division of the Company. Finance division monitors rolling forecasts of the Company’s liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times so that the Company does not breach borrowing limits or covenants (where applicable) on any of its borrowing facilities.

• II. For the forward exchange agreement which the Company is engaged in, the expected cash outflow amounts to USD$21,000 thousand. There is no significant risk because the rate of forward exchange agreement had already been confirmed.

• III. The Company has the following undrawn borrowing facilities:

December31,2023 December31,2022
Floating rate:
Expiring within one year 5,768,875 $ 5,765,400 $
IV. The table below analyses the Company’s non-derivative financial liabilities and gross-
settled derivative financial liabilities into relevant maturity groupings based on the
remaining period at the balance sheet date to the contractual maturity date for non-
derivative financial liabilities and to the expected maturity date for derivative financial

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liabilities. The amounts disclosed in the table are the contractual undiscounted cash flows.

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Less than Between 1 and Between 2 and More than
December 31, 2023 1 year 2 years 5 years 5 years
----- End of picture text -----

December31,2023	Less than 1year	Between 1 and 2years	Between 2 and 5 years	More than 5 years
Non-derivative financial liabilities: Notes payable Accounts payable (including related parties) Other payables Lease liabilities (including current and non-current) Guarantee deposits received Derivative financial liabilities: Forward foreign exchange contracts December31,2022 Non-derivative financial liabilities: Short-term borrowings Notes payable Accounts payable (including related parties) Other payables Lease liabilities (including current and non-current) Guarantee deposits received Derivative financial liabilities: Forward foreign exchange contracts	5,027 $ 131,695 290,726 9,880 - 8,641 Less than 1year 3,600 $ 5,007 261,603 251,340 10,638 - 168	- $ - - 4,006 1,780 - Between 1 and 2years - $ - - - 9,880 2,089 -	- $ - - 303 - - Between 2 and 5 years - $ - - - 4,309 - -	- $ - - - - - More than 5 years
				- $ - - - - - -

(3) Fair value information

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

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the

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entity can access at the measurement date. A market is regarded as active where a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis.

• Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. The fair value of the Company’s investment in forward foreign exchange contracts is included in Level 2.

• Level 3:Unobservable inputs for the asset or liability. The fair value of the Company’s investment in equity investment without active market is included in Level 3.

• B. Financial instruments not measured at fair value

• The financial instruments not measured at fair value (including cash and cash equivalents, notes receivable, accounts receivable (including related parties), other receivables, guarantee deposits paid, short-term borrowings, notes payable, accounts payable (including related parties), other payables, and guarantee deposits received) are based on their book value which approximates fair value.

• C. The related information on financial instruments measured at fair value by level on the basis of the nature, characteristics and risks of the assets and liabilities are as follows:

the nature, characteristics and risks of	the assets and	liabilities are	as follows:
December 31, 2023 Assets Recurring fair value measurements Financial assets at fair value through other comprehensive income Equity securities - non-current Beneficiary certificates Liabilities Recurring fair value measurements Financial liabilities at fair value through profit or loss Forward foreign exchange contract December31,2022 Assets Recurring fair value measurements Financial assets at fair value through other comprehensive income Equity securities - non-current Liabilities Recurring fair value measurements Financial liabilities at fair value through profit or loss Forward foreign exchange contract	Level 1 70,142 $ 7,066 77,208 $ - $ Level 1 55,544 $ - $	Level 2 - $ - - $ 8,641 $ Level 2 - $ 168 $	Level3 1,275 $ - 1,275 $ - $ Level3 1,275 $ - $	Total
				71,417 $ 7,066
				78,483 $
				8,641 $
				Total
				56,819 $
				168 $

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• D. The methods and assumptions the Company used to measure fair value are as follows: The valuation of derivative financial instruments is based on valuation model widely accepted by market participants, such as present value techniques and option pricing models. Forward foreign exchange contracts are usually valued based on the current forward exchange rate.

• E. For the years ended December 31, 2023 and 2022, there was no transfer between Level 1 and Level 2.

• F. The following is the movement of Level 3 for the years ended December 31, 2023 and 2022:

Equity Securities For the year ended December 31, 2023 $ 1,275 Equity Securities For the year ended December 31, 2022 $ 1,275

• G. For the years ended December 31, 2023 and 2022, there was no transfer into or out from Level 3.

• H. Financial segment is in charge of valuation procedures for fair value measurements being categorized within Level 3, which is to verify independent fair value of financial instruments. Such assessment is to ensure the valuation results are reasonable by applying independent information to make results close to current market conditions, confirming the resource of information is independent, reliable and in line with other resources and represented as the exercisable price, and frequently calibrating valuation model, performing back-testing, updating inputs used to the valuation model and making any other necessary adjustments to the fair value.

13. SUPPLEMENTARY DISCLOSURES

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

• (1) Significant transactions information

• A. Loans to others: None.

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

• C. Holding of marketable securities at the end of the period (not including subsidiary, associates and joint ventures): Refer to Table 1.

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

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

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

• G. Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more: Refer to Table 2.

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

• I. Trading in derivative instruments undertaken during the reporting periods: Refer to Note 6(2), “Financial assets and liabilities at fair value through profit or loss - current”.

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• J. Significant inter-company transactions during the reporting periods: Refer to Table 3.

• (2) Information on investees

• Names, locations and other information of investee companies (not including investees in Mainland China): Refer to Table 4.

• (3) Information on investments in Mainland China

• A.Basic information: Refer to Table 5.

• B.Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland Area: None.

• (4) Major shareholders information

• Major shareholders information: Refer to Table 6.

14. SEGMENT INFORMATION

None.

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TTET Union Corporation

Table 1

Expressed in thousands of NTD

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

December 31, 2023

Securities held by	Marketable securities	Relationship with the securities issuer	General ledger account		As of December31,2023	As of December31,2023		Note
				Number of shares	Bookvalue	Ownership	Fairvalue
TTET Union Corporation	Stock: FOOD CHINA INC. Taiwan Mobile Co., Ltd. Taiwan Secom Co. , Ltd. Far Eastern New Century Corporation The Shanghai Commercial & Savings Bank, Ltd. Formosa Plastics Corporation TTFB Company Limited Beneficiary Certificates: Yuanta AAA-A Corporate Bond ETF	－ － － － － － － －	Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current	400,000 160,000 100,000 530,000 228,796 165,000 10,000 200,000	1,275 $ 15,776 11,700 16,536 10,707 13,068 2,355 7,066	1.08％ - - - - - - -	1,275 $ 15,776 11,700 16,536 10,707 13,068 2,355 7,066	－ － － － － － － －

Table 1, Page 1

TTET Union Corporation

• Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid in capital or more For the year ended December 31, 2023

Table 2 Purchase/sale company	Counterparty	Relationship with the counterparty		Description of transaction	Description of transaction		Description and reasons for difference in transaction terms compared to non-related partytransactions	Description and reasons for difference in transaction terms compared to non-related partytransactions	Balance Percentage of total notes/accounts receivable(payable) Note Notes or accounts receivable/(payable) Expressed in thousands of NTD	Balance Percentage of total notes/accounts receivable(payable) Note Notes or accounts receivable/(payable) Expressed in thousands of NTD	Balance Percentage of total notes/accounts receivable(payable) Note Notes or accounts receivable/(payable) Expressed in thousands of NTD
			Purchases /(sales)	Amount	Percentage of total purchases /(sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable(payable)
TTET Union Corporation	Uni-President Enterprises Corp. Tai hwa Oil Industrial Co., Ltd. Master Channels Corporation Ton-Yi Industrial Corp. Total Nutrition Technologies Co., Ltd.	The investor of the Company The director of the Company An investee company accounted for under the equity method An investee company of Uni-President Enterprises Corp. accounted for under the equity method An investee company of Great Wall Enterprise Co., Ltd. accounted for under the equity method	(Sales) Purchases (Sales) Purchases (Sales)	250,545) ($ 113,176 342,933) ( 347,313 151,736) (	(1%) 1% (2%) 2% (1%)	15 days after sales 15 days after delivery Closes its accounts each half month, notes due in 20 days 30 days after acceptance 10 days after sales	$ - - - - -	(Note 1) (Note 2) (Note 1) (Note 2) (Note 1)	14,350 $ - 37,973 30,319) ( 15,731	2% - 6% (22%) 2%	－ － － － －

Table 2, Page 1

Purchase/sale company	Counterparty	Relationship with the counterparty		Description of transaction	Description of transaction		Description and reasons for difference in transaction terms compared to non-related partytransactions	Description and reasons for difference in transaction terms compared to non-related partytransactions	Notes or accounts receivable/(payable)	Notes or accounts receivable/(payable)	Note
			Purchases /(sales)	Amount	Percentage of total purchases /(sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable(payable)
TTET Union Corporation Master Channels Corporation	May Lan Lei Co., Ltd. TTET Union Corporation	An investee company of Great Wall Enterprise Co., Ltd. accounted for under the equity method The Company	(Sales) (Processing revenue) Purchases	185,078) ($ 359,609) ( 342,933	(1%) (77%) 8%	10 days after sales Closes its accounts 15 days after the end of each month Closes its accounts each half month, notes due in 20 days	$ - - -	(Note 1) (Note 1) －	3,151 $ 30,997 37,973) (	- 4% (6%)	－ － －

Note 1: The collection period for third parties was 10~45 days after sales of goods. Note 2: Payments to third parties were made in 12~30 days after receipt of goods.

Table 2, Page 2

TTET Union Corporation

Table 3

Expressed in thousands of NTD

- Significant inter company transactions during the reporting period

For the year ended December 31, 2023

Number (Note 1)	Companyname	Counterparty	Relationship (Note 2)		Transaction terms	Transaction terms
				General ledger account	Amount	Transaction terms	Percentage of total consolidated revenues or total assets(Note3)
0	TTET Union Corporation	Master Channels Corporation	1	Sales Accounts receivable	342,933) ($ 37,973	Closes its accounts each half month, notes due in 20 days －	(1％) －

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

• (1) Parent company is ‘0’.

• (2) The subsidiaries are numbered in order starting from ‘1’.

• Note 2: Relationship between transaction company and counterparty is classified into the following three categories; fill in the number of category each case belongs to (If transactions between parent company and subsidiaries or between subsidiaries refer to the same transaction, it is not required to disclose twice.)

• (1) Parent company to subsidiary.

• (2) Subsidiary to parent company.

• (3) Subsidiary to subsidiary.

• Note 3: Regarding percentage of transaction amount to consolidated revenues or total assets, it is computed based on period-end balance of transaction to consolidated assets for balance sheet accounts and based on accumulated transaction amount for the period to consolidated total operating revenues for income statement accounts.

Table 3, Page 1

Expressed in thousands of NTD

TTET Union Corporation

Information on investees (not including investees in China) For the year ended December 31, 2023

Table 4

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held as at December31,2023	Shares held as at December31,2023	Shares held as at December31,2023	Net profit (loss) of the investee for the year ended December 31,2023	Investment income (loss) recognized by the Company for the year ended December31,2023	Note
				Balance as at December31,2023	Balance as at December31,2022	Number of shares	Ownership	Bookvalue
TTET Union Corporation	Master Channels Corporation	Taiwan	Wholesale of food	138,585 $	138,585 $	24,079,998	80.27	628,750 $	247,756 $	198,865 $	Subsidiary

Table 4, Page 1

TTET Union Corporation Information on investments in Mainland China

Expressed in thousands of NTD

For the year ended December 31, 2023

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Table 5
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Accumulated Amount remitted from Taiwan to Accumulated Accumulated amount Mainland China/ amount of amount Ownership of investment Amount remitted back remittance from of remittance Net income of held by Investment income income Taiwan to to Taiwan for the year ended from Taiwan to investee for the the (loss) recognized Book value of remitted back to Investment Mainland China December 31, 2023 Mainland China year ended Company by the Company investments as Taiwan as of Investee in Main business Paid-in method as of January 1, Remitted to Remitted back as of December December 31, (direct or for the year ended of December 31, December 31, Mainland China activities capital （ Note ） 2023 Mainland China to Taiwan 31, 2023 2023 indirect) December 31, 2023 2023 2023 Note Beijing Program planning, $ 43,057 (2) $ 7,381 $ - $ - $ 7,381 ($ 6) 1.08% $ - $ 1,275 $ - － FoodChina System design, Online etc. Information and Technology Ltd.

Note : Investment methods are classified into the following three categories:

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

(2) Indirect investment in PRC through the existing company (FOOD CHINA INC.) located in the third area.

(3) Others

Accumulated Ceiling amount of investment investments in balance from Amount Mainland China Taiwan to approved by imposed by Company name Mainland China MOEA MOEA (Note 1) TTET Union $ 7,381 $ 7,381 $ 3,331,706 Corporation

Note 1: The ceiling amount is 60% of consolidated net worth. Note 2: Foreign currencies were translated into New Taiwan Dollars using the exchange rate as of balance sheet date as follows: USD:NTD 1:30.755

Table 5, Page 1

Major shareholders information

Table 6

Expressed in shares

TTET Union Corporation

December 31, 2023

Name of major shareholders	Number of	shares held	Ownership	Note
	Common shares	Preferred shares
Uni-President Enterprises Corp. Tai Hwa Oil Industrial Co., Ltd. Great Wall Enterprise Co., Ltd. Kai Yu Investment Co., Ltd.	61,594,201 26,623,706 15,416,960 12,255,730	- - - -	38.50% 16.64% 9.63% 7.64%	－ － － －

Note : The major shareholders information was calculated by Taiwan Depository & Clearing Corporation in accordance with the common shares

(including treasury shares) and preferred shares in dematerialised form which were registered and held by the shareholders above 5 ％ on the last operating date of each quarter.

The share capital which was recorded on the financial statements might be different from the number of shares held in dematerialised form because of the different calculation basis.

Table 6, Page 1

TTET UNION CORPORATION STATEMENT OF CASH AND CASH EQUIVALENTS DECEMBER 31, 2023

Expressed in thousands of NTD

Item Cash Cash on hand Checking accounts Demand deposits－New Taiwan Dollar －Foreign currency deposits Cash equivalents: Time deposits Commerical paper	interest rate at 1.4%~1.5% interest rate at 1.02% Description US$ 110 thousand dollars @ 30.755 Maturing by 2024.1.2~2024.1.15, Maturing by 2024.2.14~2024.10.18,	Amount
		282 $ 162,713 184,354 3,397
		350,746
		400,000 499,165
		1,249,911 $

~57~

TTET UNION CORPORATION STATEMENT OF NOTES RECEIVABLE DECEMBER 31, 2023

Expressed in thousands of NTD

Client Name Description Xing Dayi Co., Ltd. Notes receivable Lian Hsing Oil Trading Company 〞 Others (less than 5%) 〞 Less: Allowance for doubtful accounts	Amount Remark 14,874 $ － 11,253 － 110,125 － 136,252 266) ( 135,986 $

~58~

TTET UNION CORPORATION STATEMENT OF ACCOUNTS RECEIVABLE, NET DECEMBER 31, 2023

Expressed in thousands of NTD

ClientName Description Non-related parties: Taiwan Sugar Corp. Accounts receivable Cargill Taiwan Corp. 〞 Charoen Pokphand Enterprise (Taiwan) Co., Ltd. 〞 Others (less than 5%) 〞 Less: Allowance for doubtful accounts Related parties: Master Channels Corporation 〞 May Lan Lei Co., Ltd. 〞 Total Nutrition Technologies Co., Ltd. 〞 Uni-President Enterprises Corp. 〞 Tai Hwa Oil Industrial Co., Ltd. 〞 President Nisshin Corp. 〞 Others (less than 5%) 〞

~59~

TTET UNION CORPORATION STATEMENT OF INVENTORIES DECEMBER 31, 2023

Expressed in thousands of NTD

Item Merchandise Raw materials Raw materials in transit Supplies Work in progress Work in progress in transit Finished goods Less: Allowance for market price decline	Description Cost － 3,337 $ － 421,900 － 1,380,511 － 18,005 － 250,374 － 11,199 － 678,365 2,763,691 － 9,622) ( 2,754,069 $ Amount	Description Cost － 3,337 $ － 421,900 － 1,380,511 － 18,005 － 250,374 － 11,199 － 678,365 2,763,691 － 9,622) ( 2,754,069 $ Amount	Net Realizable Value 3,553 $ 421,752 1,380,511 17,462 250,374 11,199 717,190 2,802,041 $	Remark
				(Note) 〞 〞 〞 〞 〞 〞

Note: Refer to Note 4(8) for the method to determine the net realizable value.

~60~

TTET UNION CORPORATION STATEMENT OF PREPAYMENTS DECEMBER 31, 2023

Expressed in thousands of NTD

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

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

Supplies inventory Factory supplies － Prepaid expense － Prepayment for purchases Prepaid foreign purchases Soybean etc.	115,202 $ － 19,082 － 5,519 － 139,803 $

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TTET UNION CORPORATION

STATEMENT OF FINANCIAL ASSETS MEASURED AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME - NON-CURRENT FOR THE YEAR ENDED DECEMBER 31, 2023

Expressed in thousands of NTD

Name	Number of shares Fairvalue Number of shares Amount 160,000 15,152 $ - - $ 100,000 10,000 - - 530,000 16,907 - - 128,796 5,673 100,000 4,557 90,000 7,812 75,000 6,259 - - 10,000 2,333 400,000 1,275 - - - - 200,000 6,336 56,819 $ 19,485 $ Balance,January1,2023 Addition	Number of shares Fairvalue Number of shares Amount 160,000 15,152 $ - - $ 100,000 10,000 - - 530,000 16,907 - - 128,796 5,673 100,000 4,557 90,000 7,812 75,000 6,259 - - 10,000 2,333 400,000 1,275 - - - - 200,000 6,336 56,819 $ 19,485 $ Balance,January1,2023 Addition	Number of shares Fairvalue Number of shares Amount 160,000 15,152 $ - - $ 100,000 10,000 - - 530,000 16,907 - - 128,796 5,673 100,000 4,557 90,000 7,812 75,000 6,259 - - 10,000 2,333 400,000 1,275 - - - - 200,000 6,336 56,819 $ 19,485 $ Balance,January1,2023 Addition	Number of shares Fairvalue Number of shares Amount 160,000 15,152 $ - - $ 100,000 10,000 - - 530,000 16,907 - - 128,796 5,673 100,000 4,557 90,000 7,812 75,000 6,259 - - 10,000 2,333 400,000 1,275 - - - - 200,000 6,336 56,819 $ 19,485 $ Balance,January1,2023 Addition	Valuation adjustment	Balance, December 31, 2023	Balance, December 31, 2023	Balance, December 31, 2023	Collateral or Pledge
	Number of shares				Amount	Number of shares		Fairvalue
Listed shares Taiwan Mobile Co.,Ltd. Taiwan Secom Co.,Ltd. Far Eastern New Century Corporation The Shanghai Commercial & Savings Bank, Ltd. Formosa Plastics Corporation TTFB Company Limited Unisted shares Food CHINA INC. Beneficiary Certificates Yuanta AAA-A Corporate Bond ETF	160,000 100,000 530,000 128,796 90,000 - 400,000 -			- $ - - 4,557 6,259 2,333 - 6,336 19,485 $	624 $ 1,700 371) ( 477 1,003) ( 22 - 730 2,179 $	160,000 100,000 530,000 228,796 165,000 10,000 400,000 200,000		15,776 $ 11,700 16,536 10,707 13,068 2,355 1,275 7,066 78,483 $	None 〞 〞 〞 〞 〞 〞 〞

~62~

TTET UNION CORPORATION STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD FOR THE YEAR ENDED DECEMBER 31, 2023

Expressed in thousands of NTD

Shares Shares (In Thousands) Amount (In Thousands) Master Channels Corporation 12,040 489,596 $ 12,040 Name Balance, January 1, 2023 Additions in	Shares Shares (In Thousands) Amount (In Thousands) Master Channels Corporation 12,040 489,596 $ 12,040 Name Balance, January 1, 2023 Additions in	Investment	Shares Shares (In Thousands) Amount (In Thousands) % Amount - 60,200) ($ 24,080 80.27% 628,750 $ Decrease in Investment Balance, December 31, 2023	Shares Shares (In Thousands) Amount (In Thousands) % Amount - 60,200) ($ 24,080 80.27% 628,750 $ Decrease in Investment Balance, December 31, 2023	Shares Shares (In Thousands) Amount (In Thousands) % Amount - 60,200) ($ 24,080 80.27% 628,750 $ Decrease in Investment Balance, December 31, 2023	Market Value or Net Assets Value	Market Value or Net Assets Value	Collateral or Pledge Note
	Shares Amount (In Thousands) 489,596 $ 12,040	Amount	Shares (In Thousands) -		Amount	Unit Price (NT$)	Total Amount
	489,596 $	199,354 $		60,200) ($	628,750 $	26.11 $	628,750 $	None －

~63~

TTET UNION CORPORATION

STATEMENT OF CHANGES IN PROPERTY, PLANT AND EQUIPMENT-COST FOR THE YEAR ENDED DECEMBER 31, 2023

Expressed in thousands of NTD

Refer to Note 6(7) for the information related to property, plant and equipment.

~64~

TTET UNION CORPORATION

STATEMENT OF CHANGES IN OF PROPERTY, PLANT AND EQUIPMENT- ACCUMULATED DEPRECIATION FOR THE YEAR ENDED DECEMBER 31, 2023

Expressed in thousands of NTD Refer to Note 6(7) for the information related to property, plant and equipment, and Note 4(13) for the method to determine depreciation and useful lives for assets.

~65~

TTET UNION CORPORATION STATEMENT OF ACCOUNTS PAYABLE DECEMBER 31, 2023

Expressed in thousands of NTD

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

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

Non-related parties MITSUI & CO. (MALAYSIA) SND. BHD. Accounts payable GRAINCORP OILSEEDS PTY LTD. 〞 Others (less than 5%) 〞 Related parties Ton Yi Industrial Corp. 〞	47,646 $ － 11,199 － 42,531 － 101,376 30,319 － 131,695 $

~66~

TTET UNION CORPORATION STATEMENT OF OTHER PAYABLES DECEMBER 31, 2023

Expressed in thousands of NTD

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

Item Description Amount Remark
－
－
Wages and salaries payable $ 117,040
－
Employees' compensation and －
53,200
directors' remuneration
－
－
Business tax payable 38,179
－
－
Steam charge payable 15,373
－
－
Freight payable 15,304
－
－
Others (less than 5%) 51,630
$ 290,726
----- End of picture text -----

~67~

TTET UNION CORPORATION

STATEMENT OF CURRENT INCOME TAX LIABLITIES DECEMBER 31, 2023

Expressed in thousands of NTD

Item Description Amount Corporate profit tax － 244,795 $ Tax on undistributed surplus earnings － 8,341 253,136 $	Note
	－ －

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TTET UNION CORPORATION STATEMENT OF OPERATING REVENUE FOR THE YEAR ENDED DECEMBER 31, 2023

Expressed in thousands of NTD

Item	Quantity (tons)			Amount	Remark
Sales revenue
Soybean flour	461,089		$	8,647,916	－
Refined salad oil	83,712			3,418,139	－
Others (less than 10%)	-			5,962,486	－
				18,028,541
Less: Sales returns and discounts		(		7,151)	－
Net sales revenue				18,021,390
Net processing revenue				466,748	－
Operating revenue			$	18,488,138

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TTET UNION CORPORATION STATEMENT OF OPERATING COSTS FOR THE YEAR ENDED DECEMBER 31, 2023

Expressed in thousands of NTD

Item Merchandise at January 1, 2023 Add : Merchandise purchased Less : Transferred to other expenses Loss on physical inventory Merchandise at December 31, 2023 Merchandise sold Raw materials and material in transit at January 1, 2023 Add : Raw materials purchased Less : Raw materials sold Raw materials and materials in transit at December 31, 2023 Raw materials used Supplies at January 1, 2023 Add : Supplies purchased Gain on physical inventory Less: Transferred to processing cost Scrapped supplies Supplies at December 31, 2023 Supplies used Direct labor Less: Transferred to processing cost Manufacturing expense Less: Transferred to processing cost Manufacturing cost Work in process at January 1, 2023 Add : Work in process purchased Work in process and work in process in transit at December 31, 2023 Cost of goods manufactured

Amount

7,916 $ 53,697 166) ( 987) ( 3,337) ( 57,123 2,108,568 12,986,156 108) ( 1,802,411) ( 13,292,205 21,994 529,692 16 69,293) ( 180) ( 18,005) ( 464,224 31,328 10,895) ( 672,874 248,436) ( 14,201,300 278,842 1,985,422 261,573) ( 16,203,991

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TTET UNION CORPORATION

STATEMENT OF OPERATING COSTS (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2023

Expressed in thousands of NTD

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Item Amount
Finished goods at January 1, 2023 $ 804,245
Add : Finished goods purchased 185,731
Gain on physical inventory 5
Less: Transferred to other expenses ( 29,054)
Scrapped finished goods ( 400)
Finished goods at December 31, 2023 ( 678,365)
Cost of products sold 16,486,153
Cost of raw materials sold 108
Cost of goods sold 16,543,384
Loss on physical inventory 966
Loss on scrapped inventories 580
Reversal of inventories market price decline ( 38,986)
Costs of good sold 16,505,944
Processing costs 328,624
Other operating costs 35,778
Operating costs $ 16,870,346
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TTET UNION CORPORATION STATEMENT OF MANUFACTURING EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2023

Expressed in thousands of NTD

Item Wages and salaries Repair and maintenance Utilities Depreciation Natural gas Steam expense Freight Others (less than 5%)	Description － － － － － － － －		Amount 74,386 $ 48,021 141,436 123,200 50,442 133,518 36,747 65,124 672,874 $	Remark
				－ － － － － － － －

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TTET UNION CORPORATION STATEMENT OF SELLING EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2023

Expressed in thousands of NTD

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Item Description Amount Remark
Wages and salaries － －
$ 57,783
Freight － －
97,285
Depreciation － －
11,006
Commission － 21,218 －
Export expense － －
15,816
－ －
Others (less than 5%) 31,096
$ 234,204
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TTET UNION CORPORATION STATEMENT OF ADMINISTRATIVE EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2023

Expressed in thousands of NTD

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Item Description Amount Remark
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Wages and salaries － Insurance － Services fees － Others (less than 5%) －	115,468 $ － 7,331 － 5,276 － 42,185 － 170,260 $

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TTET UNION CORPORATION STATEMENT OF INTEREST INCOME FOR THE YEAR ENDED DECEMBER 31, 2023

Expressed in thousands of NTD

[Refer to Note 6(16) for the information related to interest income.]

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TTET UNION CORPORATION STATEMENT OF OTHER INCOME FOR THE YEAR ENDED DECEMBER 31, 2023

Expressed in thousands of NTD

[Refer to Note 6(17) for the information related to other income.]

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TTET UNION CORPORATION STATEMENT OF OTHER GAINS AND LOSSES FOR THE YEAR ENDED DECEMBER 31, 2023

Expressed in thousands of NTD

Refer to Note 6(18) for the information related to other gains or losses.

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TTET UNION CORPORATION STATEMENT OF FINANCE COOST FOR THE YEAR ENDED DECEMBER 31, 2023

Expressed in thousands of NTD

Refer to Note 6(19) for the information related to finance costs.

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TTET UNION CORPORATION

STATEMENT OF SUMMARY OF EMPLOYEE BENEFITS, DEPRECIATION AND AMORTIZATION BY NATURE FOR THE YEAR ENDED DECEMBER 31, 2023

Expressed in thousands of NTD

Refer to Note 6(20) for the additional information related to expenses by nature and Note 6(21) for the information related to employee benefits.

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