TXC - Interim / Quarterly Report 2023

TXC Corporation and Subsidiaries Consolidated Financial Statements for the Six Months Ended June 30, 2023 and 2022

TXC CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In Thousands of New Taiwan Dollars)

ASSETS CURRENT ASSETS Cash and cash equivalents (Note 6) Financial assets at fair value through profit or loss - current (Note 7) Financial assets at amortized cost - current (Note 9) Notes receivable (Note 10) Trade receivables (Note 10) Trade receivables from related parties (Notes 10 and 31) Other receivables Other receivables from related parties (Note 31) Inventories (Note 11) Non-current assets held for sale (Note 13) Other current assets Total current assets NON-CURRENT ASSETS Financial assets at fair value through other comprehensive income - non-current (Note 8) Financial assets at amortized cost - non-current (Note 9) Investments accounted for using equity method (Note 14) Property, plant and equipment (Note 15) Right-of-use assets (Note 16) Investment properties (Note 17) Other intangible assets Deferred tax assets (Note 25) Prepayment for equipment Other non-current assets Total non-current assets TOTAL LIABILITIES AND EQUITY CURRENT LIABILITIES Short-term borrowings (Note 18) Short-term bills payable (Note 18) Financial liabilities at fair value through profit or loss - current (Note 7) Contract liabilities - current (Notes 11 and 23) Trade payables Trade payables to related parties (Note 31) Other payables (Note 20) Other payables to related parties (Note 31) Current tax liabilities (Note 25) Lease liabilities - current (Note 16) Deferred revenue - current (Notes 20 and 28) Current portion of long-term borrowings (Note 18) Other current liabilities Total current liabilities NON-CURRENT LIABILITIES Bonds payable (Note 19) Long-term borrowings (Note 18) Deferred tax liabilities (Note 25) Lease liabilities - non-current (Note 16) Deferred revenue - non-current (Notes 20 and 28) Net defined benefit liabilities - non-current (Note 21) Guarantee deposits received Total non-current liabilities Total liabilities EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY (Note 22) Share capital Ordinary shares Capital surplus Retained earnings Legal reserve Special reserve Unappropriated earnings Total retained earnings Other equity Exchange differences on translating the financial statements of foreign operations Unrealized gain on financial assets at fair value through other comprehensive income Total other equity Total equity TOTAL		June 30, 2023 Amount % $ 4,500,967 24 720,749 4 377,168 2 63,574 - 2,571,940 13 10,859 - 23,594 - 795 - 2,521,710 13 - - 110,255 1 10,901,611 57 644,909 3 87,462 1 460,904 3 5,928,556 31 215,427 1 548,695 3 52,160 - 46,023 - 207,507 1 11,285 - 8,202,928 43 $ 19,104,539 100 $ 327,722 2 - - 7,759 - 39 - 892,323 5 99 - 3,150,238 16 706 - 124,210 1 3,107 - 37,094 - 912,344 5 42,690 - 5,498,331 29 1,188,540 6 1,276,066 7 45,623 - 20,036 - 87,183 1 29,318 - 79,386 - 2,726,152 14 8,224,483 43 3,097,570 16 1,718,626 9 2,243,247 12 143,071 1 4,033,008 21 6,419,326 34 (627,146) (3) 271,680 1 (355,466) (2) 10,880,056 57 $ 19,104,539 100		December 31, 2022 Amount % $ 4,222,610 21 417,450 2 351,977 2 32,125 - 3,514,781 18 9,851 - 65,288 - 643 - 2,699,721 14 - - 98,005 - 11,412,451 57 662,533 4 - - 458,607 2 6,319,742 32 205,984 1 571,346 3 53,838 - 61,271 - 94,538 1 10,934 - 8,438,793 43 $ 19,851,244 100 $ 513,750 3 - - 13,620 - 40 - 1,208,497 6 622 - 1,421,979 7 1,250 - 204,057 1 3,088 - 38,817 - 890,785 5 39,206 - 4,335,711 22 1,183,273 6 1,522,600 8 118,132 1 3,399 - 108,191 - 35,203 - 71,527 - 3,042,325 15 7,378,036 37 3,097,570 16 1,709,979 9 1,946,812 10 - - 5,861,917 29 7,808,729 39 (450,523) (2) 307,453 1 (143,070) (1) 12,473,208 63 $ 19,851,244 100		June 30, 2022
						Amount % $ 4,794,529 22 502,151 2 293,886 2 27,654 - 3,813,702 18 28,774 - 65,134 - 285 - 3,000,539 14 4,985 - 141,273 1 12,672,912 59 929,763 5 47,343 - 464,508 2 6,173,140 29 208,948 1 491,207 2 55,808 - 51,926 - 323,608 2 15,244 - 8,761,495 41 $ 21,434,407 100 $ 593,961 3 88,584 1 8,341 - 11,063 - 1,921,078 9 1,014 - 3,583,210 17 8,230 - 278,568 1 3,070 - 23,292 - 481,525 2 47,729 - 7,049,665 33 1,177,942 6 1,460,842 7 147,009 1 3,145 - 60,867 - 55,744 - 79,561 - 2,985,110 14 10,034,775 47 3,097,570 14 1,703,036 8 1,946,812 9 - - 4,512,551 21 6,459,363 30 (425,776) (2) 565,439 3 139,663 1 11,399,632 53 $ 21,434,407 100

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

TXC CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In Thousands of New Taiwan Dollars, Except Earnings Per Share)

REVENUE (Note 23) COST OF GOODS SOLD (Note 24) GROSS PROFIT OPERATING EXPENSES (Note 24) Selling and marketing expenses General and administrative expenses Research and development expenses Total operating expenses PROFIT FROM OPERATIONS NON-OPERATING INCOME AND EXPENSES Interest income (Note 24) Other income (Note 24) Other gains and losses (Note 24) Finance costs (Note 24) Share of profit of associates and joint ventures (Note 14) Total non-operating income and expenses PROFIT BEFORE INCOME TAX INCOME TAX EXPENSE (Note 25) NET PROFIT FOR THE PERIOD OTHER COMPREHENSIVE INCOME (LOSS) Items that will not be reclassified subsequently to profit or loss: Unrealized gain (loss) on investments in equity instruments at fair value through other comprehensive income Share of the other comprehensive loss of associates and joint ventures accounted for using the equity method		For the Three Months Ended June 30	For the Three Months Ended June 30	For the Three Months Ended June 30		For the Six Months Ended June 30	For the Six Months Ended June 30	For the Six Months Ended June 30
		2023		2022		2023		2022
		Amount % $ 2,426,085 100 (1,593,868) (66) 832,217 34 105,667 4 138,285 6 233,057 10 477,009 20 355,208 14 22,380 1 33,851 1 96,289 4 (14,096 ) - 2,714 - 141,138 6 496,346 20 (75,693) (3) 420,653 17 8,765 1 (8) - 8,757 1		Amount % $ 3,514,013 100 (2,132,089) (61) 1,381,924 39 139,748 4 177,370 5 264,095 7 581,213 16 800,711 23 6,492 - 35,251 1 192,404 5 (12,027 ) - 8,280 - 230,400 6 1,031,111 29 (191,006) (5) 840,105 24 (241,486 ) (7 ) (8) - (241,494) (7)		Amount % $ 4,724,073 100 (3,098,570) (66) 1,625,503 34 208,967 4 269,277 6 446,617 9 924,861 19 700,642 15 37,810 1 64,758 1 68,618 2 (27,253 ) (1 ) 2,843 - 146,776 3 847,418 18 (139,995) (3) 707,423 15 35,708 1 (8) - 35,700 1		Amount % $ 6,730,580 100 (4,149,579) (62) 2,581,001 38 273,653 4 333,345 5 505,843 7 1,112,841 16 1,468,160 22 10,726 - 62,118 1 313,870 5 (22,998 ) (1 ) 10,641 - 374,357 5 1,842,517 27 (332,075) (5) 1,510,442 22 (687,373 ) (10 ) (8) - (687,381) (10) (Continued)

TXC CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In Thousands of New Taiwan Dollars, Except Earnings Per Share)

Items that may be reclassified subsequently to profit or loss: Exchange differences on translating the financial statements of foreign operations Share of the other comprehensive (loss) income of associates and joint ventures accounted for using the equity method Other comprehensive (loss) for the period, net of income tax TOTAL COMPREHENSIVE INCOME FOR THE PERIOD EARNINGS PER SHARE (Note 26) From continuing operations Basic Diluted		For the Three Months Ended June 30	For the Three Months Ended June 30	For the Three Months Ended June 30		For the Six Months	For the Six Months	Ended June 30
		2023		2022		2023		2022
		Amount % $ (203,371 ) (9 ) (8,148) - (211,519) (9) (202,762) (8) $ 217,891 9 $1.35 $1.32		Amount % $ (118,595 ) (3 ) (3,816) - (122,411) (3) (363,905) (10) $ 476,200 14 $2.72 $2.63		Amount % $ (169,128 ) (4 ) (7,495) - (176,623) (4) (140,923) (3) $ 566,500 12 $2.28 $2.21		Amount % $ 129,089 2 4,714 - 133,803 2 (553,578) (8) $ 956,864 14 $4.88 $4.71

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

(Concluded)

TXC CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(In Thousands of New Taiwan Dollars)

BALANCE AT JANUARY 1, 2022 Appropriation of 2021 earnings (Note 22) Legal reserve Special reserve Cash dividends distributed by the Company Net profit for the six months ended June 30, 2022 Other comprehensive income (loss) for the six months ended June 30, 2022, net of income tax Total comprehensive income (loss) for the six months ended June 30, 2022 Disposal of investments in equity instruments designated as at fair value through other comprehensive income Donations from shareholders Changes in capital surplus from investment in subsidiary, associates and joint ventures accounted for using the equity method BALANCE AT JUNE 30, 2022 BALANCE AT JANUARY 1, 2023 Appropriation of 2020 earnings (Note 22) Legal reserve Special reserve Cash dividends distributed by the Company Net profit for the six months ended June 30, 2023 Other comprehensive income (loss) for the six months ended June 30, 2023, net of income tax Total comprehensive income (loss) for the six months ended June 30, 2023 Disposal of investments in equity instruments designated as at fair value through other comprehensive income Donations from shareholders Changes in capital surplus from investment in associates and joint ventures accounted for using the equity method BALANCE AT JUNE 30, 2023	Equity Attributable to Owners of the Company	Equity Attributable to Owners of the Company	Other Equity Exchange Differences on Translating the Financial Unrealized Gain (Loss) on Financial Assets at Fair Value Through Other Statements of Comprehensive Foreign Operations Income $ (559,579) $ 1,357,362 - - - - - - - - 133,803 (687,405) 133,803 (687,405) - (104,518) - - - - $ (425,776) $ 565,439 $ (450,523) $ 307,453 - - - - - - - - (176,623) 35,636 (176,623) 35,636 - (71,409) - - - - $ (627,146) $ 271,680	Total Equity $ 12,759,694 - - (2,323,178) 1,510,442 (553,578) 956,864 - 283 5,969 $ 11,399,632 $ 12,473,208 - - (2,168,299) 707,423 (140,923) 566,500 - 293 8,354 $ 10,880,056
	Shares (In Thousands) Share Capital Capital Surplus 309,757 $ 3,097,570 $ 1,696,784 - - - - - - - - - - - - - - - - - - - - - - - 283 - - 5,969 309,757 $ 3,097,570 $ 1,703,036 309,757 $ 3,097,570 $ 1,709,979 - - - - - - - - - - - - - - - - - - - - - - - 293 - - 8,354 309,757 $ 3,097,570 $ 1,718,626	Retained Earnings Unappropriated Legal Reserve Special Reserve Earnings $ 1,635,942 $ 346,761 $ 5,184,854 310,870 - (310,870) - (346,761) 346,761 - - (2,323,178) - - 1,510,442 - - 24 - - 1,510,466 - - 104,518 - - - - - - $ 1,946,812 $ - $ 4,512,551 $ 1,946,812 $ - $ 5,861,917 296,435 - (296,435) - 143,071 (143,071) - - (2,168,299) - - 707,423 - - 64 - - 707,487 - - 71,409 - - - - - - $ 2,243,247 $ 143,071 $ 4,033,008

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

TXC CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)

CASH FLOWS FROM OPERATING ACTIVITIES Income before income tax Adjustments for: Depreciation expenses Amortization expenses Net (gain) loss on fair value changes of financial assets and liabilities at fair value through profit or loss Finance costs Interest income Dividend income Share of profit of associates and joint ventures Loss on disposal of property, plant and equipment Impairment losses recognized on property, plant and equipment Loss on disposal of non-current assets held for sale Write-down of inventories Changes in operating assets and liabilities Notes receivable Trade receivables Trade receivables from related parties Other receivables Other receivables from related parties Inventories Other current assets Contract liabilities Trade payables Trade payables to related parties Other payables Other payables to related parties Other current liabilities Net defined benefit liabilities - non-current Deferred revenue Cash generated from operations Interest paid Income tax paid Net cash generated from operating activities		For the Six Months Ended June 30	For the Six Months Ended June 30
		2023 $ 847,418 610,017 7,726 (11,402) 27,253 (37,810) - (2,843) 81 4,256 - 6,603 (31,449) 942,918 (1,008) 43,819 (152) 171,541 (12,250) - (316,174) (523) (440,133) (544) 3,484 (5,885) (22,731) 1,782,212 (21,893) (277,555) 1,482,764	2022 $ 1,842,517 600,057 10,551 4,425 22,998 (10,726) (1,500) (10,641) 761 1,948 249 9,851 (22,975) 190,654 2,120 7,641 894 (371,192) (17,794) 249 (168,393) (1,126) (219,780) 4,735 26,615 (6,045) (10,330) 1,885,763 (17,277) (332,735) 1,535,751 (Continued)

TXC CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)

CASH FLOWS FROM INVESTING ACTIVITIES Purchase of financial assets/liabilities at fair value through profit or loss Proceeds from sale of financial assets at fair value through profit or loss Purchase of financial assets at fair value through other comprehensive income Proceeds from sale of financial assets at fair value through other comprehensive income Purchase of financial assets at amortized cost Purchase of investments accounted for using the equity method Proceeds from disposal of non-current assets held for sale Payments for property, plant and equipment Proceeds from disposal of property, plant and equipment Payments for intangible assets Increase in other non-current assets Decrease in other non-current assets Increase in prepayments for equipment Interest received Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from short-term borrowings Repayments of short-term borrowings Proceeds from long-term borrowings Repayments of long-term borrowings Proceeds from guarantee deposits received Repayment of the principal portion of lease liabilities Other changes in capital surplus Net cash (used in) generated from financing activities EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCE OF CASH HELD IN FOREIGN CURRENCIES NET INCREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD		For the Six Months Ended June 30	For the Six Months Ended June 30
		2023 $ (313,863) - (40,435) 89,509 (118,806) - - (289,590) 3,613 (5,361) (351) - (112,969) 35,685 (752,568) - (166,598) 107,740 (324,975) 7,859 (1,540) 293 (377,221) (74,618) 278,357 4,222,610 $ 4,500,967	2022 $ - 238,524 (20,000) 117,447 (57,409) (11,207) 1,745 (693,238) 1,204 (13,497) - 2,114 - 10,524 (423,793) 14,386 - 87,919 (108,583) 9,071 (1,521) 283 1,555 49,371 1,162,884 3,631,645 $ 4,794,529

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

(Concluded)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2023 AND 2022 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

TXC CORPORATION AND SUBSIDIARIES

1. GENERAL INFORMATION

TXC Corporation (the “Company”) was incorporated in the Republic of China (ROC) on December 28, 1983.

TXC specializes in producing high quality crystals and crystal oscillator (CXO) as well as develops a variety of sensors by core technology to satisfy the market demand. Sensors are applied to various applications including mobile communication, information and storage device, internet of things, vehicle electronics, telecommunication equipment, smart home, AI, medical care, and 5G, etc.

TXC’s shares have been listed on the Taiwan Stock Exchange since August 26, 2002.

The consolidated financial statements are presented in the Company’s functional currency, the New Taiwan dollar.

To ensure the rights and interests of investors through full disclosure of operational governance, the Company applied for the Corporate Governance Assessment held by the Taiwan Corporate Governance Association (TCGA). For the “Corporate Governance Evaluation” jointly held by the Taiwan Stock Exchange Corporation (TWSE) and Taipei Exchange, under the category of listed companies, the company was awarded as the top 20 percent in 2014, top 5 percent from 2015 to 2017, and top 6 to 20 percent from 2018 to 2022. The Company will continue to strengthen corporate governance with the intention to achieve international standards for protection of public interest. Since 2009, the Company prepared Corporate Social Responsibility Report in accordance with GRI Standards every year, officially established ESG Committee on 2021. Meanwhile, The Company prepared ESG Report to acquire the-third-party (BSI) certification, initially introduced TCFD and SASB, comprehensively implemented sustainable development based on scientific methods which met international mainstream, and fulfilled the responsibilities as a global citizen. All of the above are the efforts that The Company made to replace Corporate Social Responsibility Report to reinforce its operation sustainable development, the implement of energy saving and emission reducing, developing gender-friendly workplace, and fulfilling responsibilities for social benefit.

2. APPROVAL OF FINANCIAL STATEMENTS

The consolidated financial statements were approved by the Company’s board of directors on August 7, 2023.

3. APPLICATION OF NEW, AMEND AND REVISED STANDARDS, AND INTERPRETATIONS

a. Initial application of the amendments to the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, the “IFRSs”) endorsed and issued into effect by the Financial Supervisory Commission (FSC)

The initial application of the IFRSs endorsed and issued into effect by the FSC did not have material impact on the Group’s accounting policies.

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b. The IFRSs in issue but not yet endorsed and issued into effect by the FSC

Effective Date New, Amended and Revised Standards and Interpretations Announced by IASB (Note 1) Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets To be determined by IASB between an Investor and its Associate or Joint Venture” Amendments to IFRS 16 “Leases Liability in a Sale and Leaseback” January 1, 2024 (Note 2) IFRS 17 “Insurance Contracts” January 1, 2023 Amendments to IFRS 17 January 1, 2023 Amendments to IFRS 17 “Initial Application of IFRS 9 and IFRS 17 - January 1, 2023 Comparative Information” 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 Amendments to IAS 12 “International Tax Reform - Pillar Two Model Note 3 Rules”

Note 1: Unless stated otherwise, the above IFRSs are effective for annual reporting periods beginning on or after their respective effective dates.
Note 2: A seller-lessee shall apply the Amendments to IFRS 16 retrospectively to sale and leaseback transactions entered into after the date of initial application of IFRS 16.
Note 3: The requirement that the Group applies the exception and the requirement to disclose that fact is applied immediately upon issuance of the amendments and retrospectively in accordance with IAS 8. The remaining disclosure requirements are applied for annual reporting periods beginning on or after January 1, 2023, but not for any interim period ending on or before December 31, 2023.
1) Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture”

The amendments stipulate that, when the Group sells or contributes assets that constitute a business (as defined in IFRS 3) to an associate or joint venture, the gain or loss resulting from the transaction is recognized in full. Also, when the Group loses control of a subsidiary that contains a business but retains significant influence or joint control, the gain or loss resulting from the transaction is recognized in full.

Conversely, when the Group sells or contributes assets that do not constitute a business to an associate or joint venture, the gain or loss resulting from the transaction is recognized only to the extent of the Group’s interest as an unrelated investor in the associate or joint venture, i.e., the Group’s share of the gain or loss is eliminated. Also, when the Group loses control of a subsidiary that does not contain a business but retains significant influence or joint control over an associate or a joint venture, the gain or loss resulting from the transaction is recognized only to the extent of the Group’s interest as an unrelated investor in the associate or joint venture, i.e., the Group’s share of the gain or loss is eliminated.

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2) Amendments to IAS 1 “Classification of Liabilities as Current or Non-current” (referred to as the “2020 amendments”) and “Non-current Liabilities with Covenants” (referred to as the “2022 amendments”)

The 2020 amendments clarify that for a liability to be classified as non-current, the Group shall assess whether it has the right at the end of the reporting period to defer settlement of the liability for at least twelve months after the reporting period. If such rights exist at the end of the reporting period, the liability is classified as non-current regardless of whether the Group will exercise that right.

The 2020 amendments also stipulate that, if the right to defer settlement is subject to compliance with specified conditions, the Group must comply with those conditions at the end of the reporting period even if the lender does not test compliance until a later date. The 2022 amendments further clarify that only covenants with which an entity is required to comply on or before the reporting date should affect the classification of a liability as current or non-current. Although the covenants to be complied with within twelve months after the reporting period do not affect the classification of a liability, the Group shall disclose information that enables users of financial statements to understand the risk of the Group, which may have difficulty complying with the covenants and repaying its liabilities within twelve months after the reporting period.

The 2020 amendments stipulate that, for the purpose of liability classification, the aforementioned settlement refers to a transfer of cash, other economic resources or the Group’s own equity instruments to the counterparty that results in the extinguishment of the liability. However, if the terms of a liability that, at the option of the counterparty, result in its settlement by a transfer of the Group’s own equity instruments, and if such an option is recognized separately as equity in accordance with IAS 32 “Financial Instruments: Presentation”, the aforementioned terms would not affect the classification of the liability.

3) Amendments to IFRS 16 “Leases Liability in a Sale and Leaseback”

The amendments clarify that the liability that arises from a sale and leaseback transaction - that satisfies the requirements in IFRS 15 to be accounted for as a sale - is a lease liability to which IFRS 16 applies. However, if the lease in a leaseback that includes variable lease payments that do not depend on an index or rate, the seller-lessee shall measure lease liabilities arising from a leaseback in such a way that it does not recognize any amount of the gain or loss that relates to the right of use it retains. The seller-lessee subsequently recognizes in profit or loss the difference between the payments made for the lease and the lease payments that reduce the carrying amount of the lease liability.

4) Amendments to IAS 12 “International Tax Reform - Pillar Two Model Rules”

The amendments introduce a temporary exception to the requirements in IAS 12 by stipulating that the Group should neither recognize nor disclose information about deferred tax assets and liabilities related to Pillar Two income taxes. The amendments also require the Group to disclose that it has applied the exception and separately disclose its current tax expense (income) related to Pillar Two income taxes. In addition, for periods in which Pillar Two legislation is enacted or substantively enacted but not yet in effect, the Group should disclose qualitative and quantitative information that helps users of financial statements understand the Group’s exposure to Pillar Two income taxes.

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5) Amendments to IAS 7 and IFRS 7 “Supplier Finance Arrangements”

Supplier finance arrangements are characterized by one or more finance providers offering to pay amounts an entity owes its suppliers and the entity agreeing to pay according to the terms and conditions of the arrangements at the same date as, or a date later than, the suppliers are paid. The amendments stipulate that the Group shall disclose the relevant information about its supplier finance arrangements that enables users of financial statements to assess the effects of those arrangements on the Group’s liabilities and cash flows and on the Group’s exposure to liquidity risk.

Except for the above impact, as of the date the consolidated financial statements were authorized for issue, the Group is continuously assessing the possible impact of the application of other standards and interpretations will have on the Group’s financial position and financial performance and will disclose the relevant impact when the assessment is completed.

4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

a. Statement of compliance

These interim consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IAS 34 “Interim Financial Reporting” as endorsed and issued into effect by the FSC. Disclosure information included in these interim consolidated financial statements is less than the disclosure information required in a complete set of annual consolidated financial statements.

b. Basis of preparation

The consolidated financial statements have been prepared on the historical cost basis except for financial instruments which are measured at fair value.

The fair value measurements, which are grouped into Levels 1 to 3 based on the degree to which the fair value measurement inputs are observable and based on the significance of the inputs to the fair value measurement in its entirety, are described as follows:

1) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities;
2) Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for an asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and
3) Level 3 inputs are unobservable inputs for an asset or liability.
c. Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Company and the entities controlled by the Company (i.e., its subsidiaries, including structured entities).

Income and expenses of subsidiaries acquired or disposed of during the period are included in the consolidated statement of profit or loss and other comprehensive income from the effective dates of acquisitions up to the effective dates of disposals, as appropriate.

When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the Company.

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All intra-group transactions, balances, income and expenses are eliminated in full upon consolidation.

Changes in the Group’s ownership interests in subsidiaries that do not result in the Group losing control over the subsidiaries are accounted for as equity transactions.

d. Other material accounting policies

Except for the following, please refer to the consolidated financial statements for the year ended December 31, 2022.

1) Retirement benefits

Pension cost for an interim period is calculated on a year-to-date basis by using the actuarially determined pension cost rate at the end of the prior financial year, adjusted for significant market fluctuations since that time and for significant plan amendments, settlements, or other significant one-off events.

2) Other long-term employee benefits

Other long-term employee benefits are accounted for in the same way as the accounting required for defined benefit plans except that remeasurement is recognized in profit or loss.

3) Income tax expense

Income tax expense represents the sum of the tax currently payable and deferred tax. Interim period income taxes are assessed on an annual basis and calculated by applying to an interim period’s pre-tax income the tax rate that would be applicable to expected total annual earnings.

5. MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Group’s accounting policies, management is required to make judgments, estimations, and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered relevant. Actual results may differ from these estimates.

The same critical accounting judgments and key sources of estimation uncertainty of consolidated financial statements have been followed in these consolidated financial statements as were applied in the preparation of the consolidated financial statements for the year ended December 31, 2022.

6. CASH AND CASH EQUIVALENTS

Cash on hand Checking accounts and demand deposits Cash equivalents (investments with original maturities of less than three months) Time deposits Repurchase agreements collateralized by bonds	June 30, 2023 December 31, 2022 $ 1,050 $ 1,179 3,195,662 3,367,422 1,004,255 274,009 300,000 580,000 $ 4,500,967 $ 4,222,610	June 30, 2022 $ 1,223 3,190,894 502,412 1,100,000 $ 4,794,529

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The market rate intervals of cash in bank at the end of the reporting period were as follows:

	June 30,	June 30,		December 31,	December 31,	June 30,	June 30,
		2023			2022		2022
Bank Time deposits	1.31%-5.00%			0.98%-4.13%		0.30%-1.91%
Repurchase agreements collateralized by bonds	1.10%-1.11%				1.02%	0.36%-0.51%
FINANCIAL INSTRUMENTS AT FAIR VALUE	THROUGH PROFIT OR LOSS
	June 30,			December 31,		June 30,
		2023			2022		2022
Financial assets at FVTPL-current
Financial assets mandatorily classified as at
FVTPL
Derivative financial instruments (not under
hedge accounting)
Foreign exchange forward contracts and
exchange contracts (b)	$	8,797		$	3,662	$	-
Non-derivative financial assets
Listed shares			-		20,350		19,575
Beneficiary certificate		283			287		54,038
Hybrid financial assets
Structured deposits (a)		711,669			393,151		428,538
		711,952			413,788		502,151
	$	720,749		$	417,450	$	502,151
Financial liabilities at FVTPL-current
Financial liabilities mandatorily classified as at
FVTPL
Derivative financial instruments (not under
hedge accounting)
Foreign exchange forward contracts and
exchange contracts (b)	$	7,759		$	13,620	$	8,341

7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

a. The Group entered into structured time deposit contract with Bank during the six months ended June 30, 2023 and 2022. The structured time deposit contract includes an embedded derivative instrument which is not closely related to the host contract. The entire contract was assessed and mandatorily classified as at FVTPL since it contained a host that is an asset within the scope of IFRS 9.

12 -
b. At the end of the reporting period, outstanding foreign exchange contracts and exchange contracts not under hedge accounting were as follows:

			Contract Amount
	Currency	Maturity Date	(In Thousands)
June 30, 2023
Sell	USD/RMB	2023.07.28-2023.10.30	USD6,500/RMB45,196
Knock-out forward	USD/RMB	2023.07.14-2023.08.16	USD3,000/RMB21,119
Exchange contracts	USD/NTD	2023.07.05-2023.08.07	USD13,000/NTD392,279
December 31, 2022
Sell	USD/RMB	2023.01.30-2023.04.26	USD10,000/RMB70,227
Sell	USD/JPY	2023.01.04-2023.01.10	USD2,500/JPY334,823
Exchange contracts	USD/NTD	2023.01.09-2023.03.29	USD29,000/NTD900,640
Foreign exchange forward	USD/NTD	2023.01.10	USD3,000/NTD99,000
contracts
June 30, 2022
Sell	USD/RMB	2022.07.27-2022.10.27	USD9,500/RMB62,754
Sell	USD/JPY	2022.07.07-2022.07.26	USD5,500/JPY728,010
Knock-out forward	USD/NTD	2022.07.08	USD1,000/NTD29,300
Exchange contracts	USD/NTD	2022.08.03-2022.09.28	USD14,000/NTD414,046

The Group entered into foreign exchange forward contracts during the six months ended June 30, 2023 and 2022 to manage exposures due to exchange rate fluctuations of foreign currency denominated assets and liabilities. However, those contracts did not meet the criteria of hedge effectiveness and therefore were not accounted for using hedge accounting.

8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

Non-current Domestic investments Listed shares UPI Semiconductor Corp. Emerging market shares Win Win Precision Technology Co., Ltd. Unlisted shares Foreign investments Unlisted shares	June 30, 2023 December 31, 2022 $ 242,431 $ 262,122 122,220 - 66,842 213,170 431,493 475,292 213,416 187,241 $ 644,909 $ 662,533	June 30, 2022 $ 594,174 - 97,740 691,914 237,849 $ 929,763

These investments in equity instruments are held for medium- to long-term strategic purposes. Accordingly, the management elected to designate these investments in equity instruments as at FVTOCI as they believe that recognizing short-term fluctuations in these investments’ fair value in profit or loss would not be consistent with the Group’s strategy of holding these investments for long-term purposes.

13 -

On January 16, 2023, Win Win Precision Technology Co., Ltd.’s shares were listed on the emerging market of OTC. The transfer of fair value measurement level referred to Note 30.

In the second quarter of 2023 and 2022, the Group sold its shares in UPI Semiconductor Corp. in order to manage credit concentration risk. The shares sold had a fair value of $89,509 thousand and $117,447 thousand and its related unrealized gain of $71,409 thousand and $104,518 thousand was transferred from other equity to retained earnings.

9. FINANCIAL ASSETS AT AMORTIZED COST

Current Domestic investments Pledge deposits (a) Time deposits with original maturity of more than three months (b) Non-current Domestic investment Time deposits with original maturities of more than one year (b)	June 30, 2023 December 31, 2022 $ 86,340 $ 70,259 290,828 281,718 $ 377,168 $ 351,977 $ 87,462 $ -	June 30, 2022 $ 66,287 227,599 $ 293,886 $ 47,343

a. Refer to Note 32 for information relating to investments in financial assets at amortized cost pledged as security.
b. The ranges of interest rates for time deposits with original maturities of more than three months were approximately 1.17%-4.49%, 1.68%-4.125% and 1.68%-4.125% per annum as of June 30, 2023, December 31, 2022 and June 30, 2022, respectively.

10. NOTES RECEIVABLE, TRADE RECEIVABLES AND OTHER RECEIVABLES

Notes receivable Notes receivable - operating Less: Allowance for impairment loss Trade receivables At amortized cost Gross carrying amount Less: Allowance for impairment loss	June 30, 2023 December 31, 2022 $ 63,580 $ 32,131 (6) (6) $ 63,574 $ 32,125 $ 2,596,217 $ 3,538,129 (13,418) (13,497) $ 2,582,799 $ 3,524,632	June 30, 2022 $ 27,660 (6) $ 27,654 $ 3,856,028 (13,552) $ 3,842,476

14 -

In order to minimize credit risk, the management of the Company has delegated a team responsible for determining credit limits, credit approvals and other monitoring procedures to ensure that follow-up action is taken to recover overdue debts. In addition, the Group reviews the recoverable amount of each individual trade debt at the end of the reporting period to ensure that adequate allowance is made for possible irrecoverable amounts. In this regard, the management believes the Group’s credit risk was significantly reduced.

The Group measures the loss allowance for trade receivables at an amount equal to lifetime ECLs. The expected credit losses on trade receivables are estimated using a provision matrix prepared by reference to the past default experience of the customer, the customer’s current financial position, economic condition of the industry in which the customer operates, as well as the GDP forecasts and industry outlook. As the Group’s historical credit loss experience does not show significantly different loss patterns for different customer segments, the provision for loss allowance based on past due status is not further distinguished according to the Group’s different customer base. The Group recognizes 100% loss allowance for trade receivables of greater than 120 days past due and unsecured.

The Group writes off a trade receivable when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery. For trade receivables that have been written off, the Group continues to engage in enforcement activity to attempt to recover the receivables due. Where recoveries are made, these are recognized in profit or loss.

The following table details the loss allowance of notes receivable and trade receivables based on the Group’s provision matrix.

June 30, 2023

Expected credit loss rate Gross carrying amount Loss allowance (Lifetime ECL) Amortized cost December 31, 2022 Expected credit loss rate Gross carrying amount Loss allowance (Lifetime ECL) Amortized cost June 30, 2022 Expected credit loss rate Gross carrying amount Loss allowance (Lifetime ECL) Amortized cost	Not Past Due 0.52% $ 2,514,491 (13,092) $ 2,501,399 Not Past Due 0.30% $ 3,332,503 (10,032) $ 3,322,471 Not Past Due 0.36% $ 3,625,439 (13,113) $ 3,612,326	1 to 60 Days 61 to 120 Days 121 to 180 Days Over 180 Days 0.17%-1.69% 100% 100% 100% $ 145,306 $ - $ - $ - (332) - - - $ 144,974 $ - $ - $ - 1 to 60 Days 61 to 120 Days 121 to 180 Days Over 180 Days 0.27%-2.84% 22.93%-34.39% 100% 100% $ 230,679 $ 7,078 $ - $ - (1,037) (2,434) - - $ 229,642 $ 4,644 $ - $ - 1 to 60 Days 61 to 120 Days 121 to 180 Days Over 180 Days 0.02%-0.2% 7.51%-15.03% 100% 100% $ 255,172 $ 3,077 $ - $ - (58) (387) - - $ 255,114 $ 2,690 $ - $ -	Total $ 2,659,797 (13,424) $ 2,646,373 Total $ 3,570,260 (13,503) $ 3,556,757 Total - $ 3,883,688 (13,558) $ 3,870,130

15 -

The movements of the loss allowance of trade receivables were as follows:

Balance at January 1 Foreign exchange gains and losses Balance at June 30		June 30
		2023 $ 13,503 (79) $ 13,424	2022 $ 13,494 64 $ 13,558

11. INVENTORIES

Finished goods Work in process Raw materials Supplies and spare parts Merchandise Buildings and land held for sale	June 30, 2023 December 31, 2022 $ 473,000 $ 620,212 429,685 446,386 696,199 769,022 138,373 137,716 542,212 475,972 242,241 250,413 $ 2,521,710 $ 2,699,721	June 30, 2022 $ 589,191 464,881 815,466 117,515 553,166 460,320 $ 3,000,539

The cost of crystal inventories recognized as cost of goods sold for the three and the six months ended June 30, 2023 and 2022 included $1,591,337 thousand, $2,125,218 thousand, $3,096,039 thousand and $4,134,816 thousand, respectively. The cost of goods sold for the three and the six months ended June 30, 2023 and 2022 included inventory write-downs of $3,373 thousand, $5,586 thousand, $6,603 thousand and $9,851 thousand, respectively.

The cost of real estate inventories recognized as cost of goods sold for the three and the six months ended June 30, 2023 and 2022 included $2,531 thousand, $6,871 thousand, $2,531 thousand and $14,763 thousand, respectively.

The construction in progress is the payment made by Chongqing Zhongyang Properties Co., Ltd. to acquire the land use right in Chongqing Gao-Shing District to develop and sell real estate in 2012. Chongqing Zhongyang Properties Co., Ltd. has acquired real estate certificate issued by Chongqing Association of land and real estate resources during 2013. The construction began in 2018 and continued to recognize revenue after completion in April 2021.

The details of the building and land held for sale are as follows:

Area Jing Yuan Area Jing Yuan	June 30, 2023
	Buildings and Land Held for Sale Contract Liabilities - Current $ 242,241 $ 39 December 31, 2022
	Buildings and Land Held for Sale Contract Liabilities - Current $ 250,413 $ 40

16 -

Area Jing Yuan	June 30, 2022
	Buildings and Land Held for Sale Contract Liabilities - Current $ 460,320 $ 11,063

12. SUBSIDIARIES

Subsidiaries Included in the Consolidated Financial Statements

The detail information of the subsidiaries at the end of reporting period was as follows:

Investor
Investee
Nature of Activities
TXC Corporation
Taiwan Crystal Technology
International Limited
Investment management
TXC Technology, Inc.
Marketing activities
TXC Japan Corporation
Marketing activities
Taiwan Crystal Technology (HK)
Limited
International trading
TXC Europe GmbH
Marketing activities
Taiwan Crystal Technology
International Limited
TXC (Ningbo) Corporation
Research and development,
manufacture, and sale of
quartz elements and
related electronic products
TXC (Ningbo) Corporation TXC (Chongqing) Corporation
Research and development,
manufacture, and sale of
quartz elements and
related electronic products
Chongqing Zhongyang Properties Co.,
Ltd.
Properties development
Ningbo Beilun Jingyu Trading
Corporation
International trading
Ningbo Meishan Free Trade Port Area
Ding Kai Investment Management
Company Limited
Investment management
TETC CORP. NINGBO
Research and development,
manufacture, and sale of
quartz elements and
related electronic products
Chongqing Zhongyang
Properties Co., Ltd.
ChongQing Dingsen Commercial
Management Co., Ltd.
Property management
TETC CORP. NINGBO
Shanghai JCH Co., Ltd. (JCH)
Marketing activities and
technical services

Proportion of Ownership
June 30,
2023
December 31,
2022
June 30,
2022
Remark
100
100
100
a
100
100
100
b
100
100
100
c
100
100
100
e
100
100
100
j
100
100
100
d
100
100
100
f
100
100
100
g
100
100
100
h
100
100
100
i
100
100
100
l
100
100
100
k
100
100
-
m

a. Taiwan Crystal Technology International Limited was incorporated on December 23, 1998 in Samoa.
b. TXC Technology, Inc. was incorporated on December 1, 2000 in California, U.S.A.
c. TXC Japan Corporation was incorporated on September 13, 2005 in Yokohama, Japan.
d. TXC (Ningbo) Corporation was incorporated on March 12, 1999 in Ningbo, China.
e. Taiwan Crystal Technology (HK) Limited was incorporated on July 6, 2010 in Hong Kong Special Administrative Region, China.
f. TXC (Chongqing) Corporation was incorporated on October 11, 2010 in Chongqing, China.
g. Chongqing Zhongyang Properties Co., Ltd. was incorporated on February 14, 2011 in Chongqing, China.
17 -
h. Ningbo Beilun Jingyu Trading Corporation was incorporated on September 7, 2011 in Ningbo, China.
i. Ningbo Meishan Free Trade Port Area Ding Kai Investment Management Company Limited was incorporated on May 12, 2017 in Beilun District, Ningbo, China.
j. TXC Europe GmbH was founded in Germany on August 17, 2018.
k. ChongQing Dingsen Commercial Management Co., Ltd. was incorporated on February 21, 2019 in Chongqing, China.
l. TETC CORP. NINGBO was incorporated on December 30, 2020 in Ningbo, China.
m. Shanghai JCH Co., Ltd. was registed on October 13, 2022 in Shanghai, China.
n. Except for the financial statements for the six months ended June 30, 2023 and 2022 of Taiwan Crystal Technology International Limited, TXC (Ningbo) Corporation, TXC (Chongqing) Corporation, and Chongqing Zhongyang Properties Co., Ltd., all company are immaterial subsidiaries, and their financial statements have not been reviewed.

13. NON-CURRENT ASSETS CLASSIFIED AS HELD FOR SALE

Domestic investments Unlisted shares Godsmith Sensor Inc.	June 30, 2023 December 31, 2022 $ - $ -	June 30, 2022 $ 4,985

In November 2020, the Company’s board of directors approved to dispose of 24% shares of Godsmith Sensor Inc. held with the expectation to complete the sale within twelve months. Accordingly, the Company has reclassified Godsmith Sensor Inc. as non-current assets held for sale, and were presented separately in the accompanying balance sheets.

For the year ended December 31, 2022, the Group had sold 100 thousand shares in Godsmith Sensor Inc. at fair value of $1,745 thousand and were recognized as loss on disposal $249 thousand.

As of December 31, 2022, the Group still held 250 thousand shares. The financial assets were assessed to no longer meet the definition of non-current assets held for sale and therefore reclassified as financial assets at FVTOCI on the consolidated balance sheet.

14. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

Investments in associates and joint venture a. Investment in associates Associates that are not individually material	June 30, 2023 December 31, 2022 $ 460,904 $ 458,607 June 30, 2023 December 31, 2022 $ 404,062 $ 401,707	June 30, 2022 $ 464,508 June 30, 2022 $ 409,756

18 -

The Group’s share of: Profit from continuing operations Other comprehensive (loss) income Total comprehensive (loss) income for the period	For the Three Months Ended June 30 2023 2022 $ 6,355 $ 9,538 (8,156) (3,824) $ (1,801) $ 5,714	For the Three Months Ended June 30 2023 2022 $ 6,355 $ 9,538 (8,156) (3,824) $ (1,801) $ 5,714		For the Six Months Ended June 30	For the Six Months Ended June 30
		2023 $ 6,355 (8,156) $ (1,801)		2023 $ 9,858 (7,503) $ 2,355	2022 $ 13,836 4,706 $ 18,542

Refer to Table 4 “name, locations, and related information of investees on which the Company exercises significant influence” for the nature of activities, principal place of business and country of incorporation of the associates.

b. Investment joint venture

June 30, 2023 December 31, 2022 June 30, 2022 Joint ventures that are not individually material $ 56,842 $ 56,900 $ 54,752 For the Three Months Ended June 30 For the Six Months Ended June 30 2023 2022 2023 2022 The Group’s share of: Loss from continuing operations $ (3,641) $ (1,258) $ (7,015) $ (3,195) Total comprehensive loss for the period $ (3,641) $ (1,258) $ (7,015) $ (3,195)	June 30, 2023 December 31, 2022 June 30, 2022 Joint ventures that are not individually material $ 56,842 $ 56,900 $ 54,752 For the Three Months Ended June 30 For the Six Months Ended June 30 2023 2022 2023 2022 The Group’s share of: Loss from continuing operations $ (3,641) $ (1,258) $ (7,015) $ (3,195) Total comprehensive loss for the period $ (3,641) $ (1,258) $ (7,015) $ (3,195)	June 30, 2023 December 31, 2022 June 30, 2022 Joint ventures that are not individually material $ 56,842 $ 56,900 $ 54,752 For the Three Months Ended June 30 For the Six Months Ended June 30 2023 2022 2023 2022 The Group’s share of: Loss from continuing operations $ (3,641) $ (1,258) $ (7,015) $ (3,195) Total comprehensive loss for the period $ (3,641) $ (1,258) $ (7,015) $ (3,195)	June 30, 2023 December 31, 2022 June 30, 2022 Joint ventures that are not individually material $ 56,842 $ 56,900 $ 54,752 For the Three Months Ended June 30 For the Six Months Ended June 30 2023 2022 2023 2022 The Group’s share of: Loss from continuing operations $ (3,641) $ (1,258) $ (7,015) $ (3,195) Total comprehensive loss for the period $ (3,641) $ (1,258) $ (7,015) $ (3,195)
		2023 $ (7,015) $ (7,015)	2022 $ (3,195) $ (3,195)

Refer to Table 4 “name, locations, and related information of investees on which the Company exercises significant influence” and Table 5 “information on investment in mainland China” for the nature of activities, principal place of business and country of incorporation of the joint venture.

Except for investments of Ningbo Longying Semiconductor Co., Ltd., which were accounted for using the equity method and the share of profit or loss and other comprehensive income of those investments were calculated based on financial statements which have been reviewed. Management believes there is no material impact on the equity method of accounting or the calculation of the share of profit or loss and other comprehensive income from the financial statements of Ningbo Longying Semiconductor Co., Ltd. which have not been reviewed.

19 -

15. PROPERTY, PLANT AND EQUIPMENT

Cost Balance at January 1, 2022 Additions Disposals Transfer from investment properties Transfer from prepayment for equipment Effect of foreign currency exchange differences Balance at June 30, 2022 Accumulated depreciation and impairment Balance at January 1, 2022 Disposals Depreciation expenses Impairment losses Transfer from investment properties Effect of foreign currency exchange differences Balance at June 30, 2022 Carrying value at June 30, 2022 Cost Balance at January 1, 2023 Additions Disposals Reclassified as intangible assets Reclassified Effect of foreign currency exchange differences Balance at June 30, 2023 Accumulated depreciation and impairment Balance at January 1, 2023 Disposals Depreciation expenses Impairment losses Reclassified Effect of foreign currency exchange differences Balance at June 30, 2023 Carrying value at December 31, 2022 and January 1, 2023 Carrying value at June 30, 2023	Freehold Land $ 621,855 - - - - - $ 621,855 $ - - - - - - $ - $ 621,855 $ 621,855 - - - - - $ 621,855 $ - - - - - - $ - $ 621,855 $ 621,855	Land Improvements $ 2,279 270 - - - - $ 2,549 $ 1,209 - 187 - - - $ 1,396 $ 1,153 $ 3,024 - - - - - $ 3,024 $ 1,581 - 158 - - - $ 1,739 $ 1,443 $ 1,285	Buildings Machinery and Equipment Transportation Equipment $ 2,728,943 $ 9,699,052 $ 21,149 34,901 620,808 - (297 ) (31,706 ) (1,084 ) 5,942 - - - 164,926 - 21,538 105,159 366 $ 2,791,027 $ 10,558,239 $ 20,431 $ 1,211,106 $ 6,157,842 $ 15,109 (297 ) (30,300 ) (564 ) 76,068 487,129 1,326 - 1,948 - 3,676 - - 9,638 60,014 253 $ 1,300,191 $ 6,676,633 $ 16,124 $ 1,490,836 $ 3,881,606 $ 4,307 $ 2,781,991 $ 11,127,318 $ 24,354 7,856 105,963 - - (57,359 ) - - - - - (884 ) - (27,066) (148,730) (519) $ 2,762,781 $ 11,026,308 $ 23,835 $ 1,353,707 $ 7,111,880 $ 17,137 - (53,720 ) - 69,113 501,011 1,487 - 4,256 - - (80 ) - (14,707) (94,076) (388) $ 1,408,113 $ 7,469,271 $ 18,236 $ 1,428,284 $ 4,015,438 $ 7,217 $ 1,354,668 $ 3,557,037 $ 5,599	Office Equipment Property under Construction $ 387,266 $ 13,137 35,026 2,233 (8,609 ) - - - - - 4,676 237 $ 418,359 $ 15,607 $ 244,587 $ - (8,570 ) - 21,777 - - - - - 2,789 - $ 260,583 $ - $ 157,776 $ 15,607 $ 427,331 $ 97,580 19,909 155,862 (2,660 ) - - (1,302 ) 1,064 (180 ) (7,345) (5,626) $ 438,299 $ 246,334 $ 279,406 $ - (2,605 ) - 24,112 - - - 80 - (4,472) - $ 296,521 $ - $ 147,925 $ 97,580 $ 141,778 $ 246,334	Total $ 13,473,681 693,238 (41,696 ) 5,942 164,926 131,976 $ 14,428,067 $ 7,629,853 (39,731 ) 586,487 1,948 3,676 72,694 $ 8,254,927 $ 6,173,140 $ 15,083,453 289,590 (60,019 ) (1,302 ) - (189,286) $ 15,122,436 $ 8,763,711 (56,325 ) 595,881 4,256 - (113,643) $ 9,193,880 $ 6,319,742 $ 5,928,556

The above items of property, plant and equipment are depreciated on a straight-line basis over their estimated useful lives as follows:

Land improvements 5-7 years Buildings Industrial building 3-51 years Electrical power systems 3-51 years Engineering systems 3-51 years Equipment Major production equipments 3-15 years Temperature control systems 4-7 years Transportation equipments 4-7 years Transportation equipments 4-5 years Office equipment 3-5 years

Property, plant and equipment pledged as collateral for bank borrowings is set out in Note 32.

20 -

16. LEASE ARRANGEMENTS

a. Right-of-use assets

Carrying amounts Land use right Buildings Transportation equipment Additions to right-of-use assets Depreciation charge for right-of-use assets Land use right Buildings Transportation equipment	June 30, 2023 $ 192,745 22,196 486 $ 215,427 For the Three Months Ended June 30	June 30, 2023 $ 192,745 22,196 486 $ 215,427 For the Three Months Ended June 30	June 30, 2023 $ 192,745 22,196 486 $ 215,427 For the Three Months Ended June 30	December 31, 2022 June 30, 2022 $ 199,547 $ 202,778 5,727 5,235 710 935 $ 205,984 $ 208,948 For the Six Months Ended June 30	December 31, 2022 June 30, 2022 $ 199,547 $ 202,778 5,727 5,235 710 935 $ 205,984 $ 208,948 For the Six Months Ended June 30	December 31, 2022 June 30, 2022 $ 199,547 $ 202,778 5,727 5,235 710 935 $ 205,984 $ 208,948 For the Six Months Ended June 30	December 31, 2022 June 30, 2022 $ 199,547 $ 202,778 5,727 5,235 710 935 $ 205,984 $ 208,948 For the Six Months Ended June 30	December 31, 2022 June 30, 2022 $ 199,547 $ 202,778 5,727 5,235 710 935 $ 205,984 $ 208,948 For the Six Months Ended June 30
						$	2023 2022 18,221 $ - For the Six Months Ended June 30
		2023 $ 1,147 655 111 $ 1,913	2022 $ 1,173 655 112 $ 1,940				2023 $ 2,314 1,309 224 $ 3,847	2022 $ 2,331 1,309 225 $ 3,865

Right-of-use assets pledged as collateral for bank borrowings are set out in Note 32.

b. Lease liabilities

	June 30,	June 30,	December 31,	December 31,	June 30,	June 30,
		2023		2022		2022
Carrying amounts
Current	$	3,107	$	3,088	$	3,070
Non-current		20,036		3,399		3,145
	$	23,143	$	6,487	$	6,215
Range of discount rate for lease liabilities was as follows:
	June 30,		December 31,		June 30,
		2023		2022		2022
Buildings	0.86%-3.85%		0.86%-1.27%		0.86%-1.27%
Transportation equipment		0.86%		0.86%		0.86%

21 -

c. Material lease-in activities and terms

The Group purchased the land use right for the construction of plants, offices and retail stores with use term of 50 years in mainland China and its payments was paid fully at the time of contract signed and can be renewed upon the expiration of the period. The Group does not have purchase options to acquire the land and buildings at the end of the contract.

d. Other lease information

Expenses relating to short-term leases Total cash outflow for leases	For the Three Months Ended June 30 2023 2022 $ 56 $ 54 $ (827) $ (816)	For the Three Months Ended June 30 2023 2022 $ 56 $ 54 $ (827) $ (816)		For the Six Months Ended June 30	For the Six Months Ended June 30
		2023 $ 56 $ (827)		2023 $ 111 $ (1,651)	2022 $ 109 $ (1,630)

The Group leases certain building which qualify as short-term leases. The Group has elected to apply the recognition exemption and thus, did not recognize right-of-use assets and lease liabilities for these leases.

17. INVESTMENT PROPERTIES

	Completed
	Investment
	Properties
Cost
Balance at January 1, 2022	$ 544,232
Disposals	(300)
Transfer to property, plant and equipment	(5,942)
Effect of foreign currency exchange differences	9,555
Balance at June 30, 2022	$ 547,545
Accumulated depreciation and impairment
Balance at January 1, 2022	$ (49,864)
Depreciation expenses	(9,705)
Disposals	300
Transfer to property, plant and equipment	3,676
Effect of foreign currency exchange differences	(745)
Balance at June 30, 2022	$ (56,338)
Carrying amounts at June 30, 2022	$ 491,207
	(Continued)

22 -

	Completed
	Investment
	Properties
Cost
Balance at January 1, 2023	$ 637,330
Effect of foreign currency exchange differences	(13,848)
Balance at June 30, 2023	$ 623,482
Accumulated depreciation and impairment
Balance at January 1, 2023	$ (65,984)
Depreciation expenses	(10,289)
Effect of foreign currency exchange differences	1,486
Balance at June 30, 2023	$ (74,787)
Carrying amounts at June 30, 2023	$ 548,695
	(Concluded)

The investment real estate held by the combined company is mainly located in Pingzhen District of Taoyuan City and Ningbo City, Mainland China, and some of the factories and offices are leased to collect rents. The other part of the investment real estate is located in Chongqing City, mainland China, and is mainly self-built shopping malls to collect rents.

The investment properties held by the Group are depreciated using the straight-line method over their useful lives of 3-60 years.

The fair value of the Group’s investment properties as of June 30, 2023, December 31, 2022 and June 30, 2022 was $1,065,197 thousand, $1,085,198 thousand and $1,115,567 thousand, respectively. The determination of fair value was not performed by independent qualified professional valuers; however, the management of the Group used the valuation model that market participants would use in determining the fair value. The valuation was arrived at by reference to market evidence of transaction prices for similar properties.

All of the Group’s investment properties were freehold properties. The investment properties pledged as collateral for bank borrowing are set out in Note 32.

23 -

18. BORROWINGS

a. Short-term borrowings

Secured borrowings (Note 32) Bank loans Unsecured borrowings Bank loans Letters of credit	June 30, 2023 December 31, 2022 $ 42,658 $ 43,651 234,305 359,869 50,759 110,230 285,064 470,099 $ 327,722 $ 513,750	June 30, 2022 $ 132,876 350,355 110,730 461,085 $ 593,961

The interest rate on the bank loans and letters of credit were 2.83%-3.65%, 1.2%-3.65% and 1.20%-3.85% per annum as of June 30, 2023, December 31, 2022 and June 30, 2022, respectively.

b. Short-term bills payable

June 30,
2023
December 31,
2022
Bank acceptances
$ -
$ -
Outstanding short-term bills payable were as follows:
June 30, 2022
Promissory
Institution
Nominal
Amount
Discount
Amount
Carrying
Amount
Interest Rate
Collateral
Bank acceptances
Bank of Ningbo
RMB 20,000
$ -
$ 88,584
3.6%
-
Long-term borrowings
June 30,
2023
December 31,
2022
Secured borrowings (Note 32)

Bank loans
$ 120,702
$ 39,180

Unsecured borrowings
Bank loans
2,067,708
2,374,205
Less: Current portions

(912,344)

(890,785)

1,155,364

1,483,420

Long-term borrowings
$ 1,276,066
$ 1,522,600

June 30,
2022
$ 88,584
Carrying
Amount of
Collateral
$ -
June 30,
2022
$ -
1,942,367

(481,525)

1,460,842
$ 1,460,842

c. Long-term borrowings

24 -

The borrowings of the Group were as follows:

Detail of Borrowing Unsecured bank borrowing denominated in NT$ Maturity date: 2025.01.03 Principle is paid monthly since March 15, 2021 Unsecured bank borrowing denominated in NT$ Maturity date: 2025.01.03 Principle is paid monthly since January 15, 2021 Unsecured bank borrowing denominated in NT$ Maturity date: 2025.01.03 Principle is paid monthly since January 15, 2021 Unsecured bank borrowing denominated in NT$ Maturity date: 2025.01.03 Principle is paid monthly since January 15, 2021 Unsecured bank borrowing denominated in NT$ Maturity date: 2026.08.17 Principle is paid monthly since September 15, 2022 Unsecured bank borrowing denominated in NT$ Maturity date: 2024.09.15 Principle is paid monthly since September 15, 2022 Unsecured bank borrowing denominated in NT$ Maturity date: 2024.09.15 Principle is paid monthly since September 15, 2022 Unsecured bank borrowing denominated in NT$ Maturity date: 2024.09.15 Principle is paid monthly since September 15, 2022 Unsecured bank borrowing denominated in NT$ Maturity date: 2025.04.01 Principle is paid monthly since March 15, 2023 Unsecured bank borrowing denominated in NT$ Maturity date: 2023.09.06 Principle is repaid at maturity Unsecured bank borrowing denominated in NT$ Maturity date: 2025.04.15 Principle is paid monthly since May 15, 2023 Unsecured bank borrowing denominated in NT$ Maturity date: 2024.08.03 Principle is repaid at maturity Unsecured bank borrowing denominated in NT$ Maturity date: 2024.08.03 Principle is repaid at maturity Unsecured bank borrowing denominated in NT$ Maturity date: 2024.08.03 Principle is repaid at maturity Secured bank borrowing denominated in RMB Maturity date: 2027.11.01 Principle is repaid semi-annually per agreement of RMB250 thousand, from April 19, 2024 to April 19, 2026; per agreement of RMB500 thousand, from April 19, 2026 to the maturity date. Unsecured bank borrowing denominated in RMB Maturity date: 2023.08.31 Principle is repaid semi-annually per agreement of RMB100 thousand, from November 30, 2022 to the maturity date. Unsecured bank borrowing denominated in RMB Maturity date: 2023.09.08 Principle is repaid semi-annually per agreement of RMB100 thousand, from December 8, 2022 to the maturity date. Unsecured bank borrowing denominated in RMB Maturity date: 2023.11.01 Principle is repaid semi-annually per agreement of RMB500 thousand, from February 1, 2023 to the maturity date. Unsecured bank borrowing denominated in RMB Maturity date: 2023.11.08 Principle is repaid semi-annually per agreement of RMB500 thousand, from February 8, 2023 to the maturity date. Unsecured bank borrowing denominated in RMB Maturity date: 2025.04.02 Principle is repaid semi-annually per agreement of RMB266 thousand, from October 3, 2023 to the maturity date. Unsecured bank borrowing denominated in US$ Maturity date: 2023.09.24 Principle is repaid at maturity Less: Current portions	June 30, 2023 $ 39,130 56,250 37,500 56,250 158,333 180,000 60,000 120,000 252,000 - 183,333 100,000 300,000 300,000 120,703 41,796 41,796 40,504 40,504 22,949 37,362 (912,344) $ 1,276,066	December 31, 2022 $ 52,174 75,000 50,000 75,000 183,333 252,000 84,000 168,000 300,000 - 200,000 100,000 300,000 300,000 39,180 43,210 43,210 43,651 43,210 - 61,417 (890,785) $ 1,522,600	June 30, 2022 $ 65,217 93,750 62,500 93,750 200,000 300,000 100,000 200,000 300,000 180,000 200,000 - - - - 43,849 43,849 - - - 59,452 (481,525) $ 1,460,842

The range of interest rate on the bank loans was 0.85%-6.23%, 0.725%-5.49% and 0.35%-3.20% per annum as of June 30, 2023, December 31, 2022 and June 30, 2022, respectively.

19. BONDS PAYABLE

Unsecured domestic convertible bonds Less: Discount on bonds payable	June 30, 2023 December 31, 2022 $ 1,200,000 $ 1,200,000 (11,460) (16,727) $ 1,188,540 $ 1,183,273	June 30, 2022 $ 1,200,000 (22,058) $ 1,177,942

25 -

On July 26, 2021, the Company issued the 5th domestic unsecured convertible bonds with an aggregate principal amount of $1,200,000 thousand at 0% interest rate, and the issuance period is for three years from July 26, 2021 to July 26, 2024. The repayment will be made at face value in full by cash upon maturity. Bondholders are entitled to convert bonds into the Company’s ordinary shares from October 27, 2021 to July 26, 2024. The conversion price was set initially at $138 per share. According to the regulations on issuance and conversion of bonds, the conversion price should be adjusted to $113.6 per share ex-dividend date starting from July 10, 2023.

The convertible bonds contain both liability and equity components. The equity component was presented in equity under the heading of capital surplus. The effective interest rate of the liability component was 0.8961% per annum on initial recognition.

Proceeds from issuance (less transaction costs of $5,427 thousand)

Equity component (less transaction costs allocated to the equity component of $129
thousand)
Assets component

Liability component at the date of issue (less transaction costs allocated to the liability
component of $5,298 thousand)

Liability component at December 31, 2021

Interest charged at an effective interest rate

Liability component at June 30, 2022

Liability component at December 31, 2022

Interest charged at an effective interest rate

Liability component at June 30, 2023

$ 1,194,573
(28,431)

2,040
$ 1,168,182
$ 1,172,721

5,221
$ 1,177,942
$ 1,183,273

5,267
$ 1,188,540

20. OTHER LIABILITIES

Current Other payables Payables for bonuses to employees and directors Payables for commissions Payables for salaries Payables for bonuses Payables for annual leave Payables for purchases of equipment Payables for dividends Others Deferred revenue Arising from government grants (Note 28)	June 30, 2023 December 31, 2022 $ 380,749 $ 393,658 20,504 25,232 133,507 147,661 204,744 506,933 43,406 47,364 45,028 138,135 2,168,299 - 154,001 162,996 $ 3,150,238 $ 1,421,979 $ 37,094 $ 38,817	June 30, 2022 $ 396,064 22,274 155,911 288,269 42,640 153,229 2,323,178 201,645 $ 3,583,210 $ 23,292 (Continued)

26 -

Non-current Deferred revenue Arising from government grants (Note 28)	June 30, 2023 December 31, 2022 $ 87,183 $ 108,191	June 30, 2022 $ 60,867 (Concluded)

21. RETIREMENT BENEFIT PLANS

a. Defined contribution plans

The Company adopted a pension plan under the Labor Pension Act (LPA), which is a state-managed defined contribution plan. Under the LPA, an entity makes monthly contributions to employees’ individual pension accounts at 6% of monthly salaries and wages.

The employees of the Group’s subsidiaries in mainland China are members of a state-managed retirement benefit plan operated by the government of China. The subsidiaries are required to contribute a specified percentage of payroll costs to the retirement benefit scheme to fund the benefits. The only obligation of the Group with respect to the retirement benefit plan is to make the specified contributions.

b. Defined benefit plans

Employee benefit expense for the three and the six months ended June 30, 2023 and 2022 were $343 thousand, $421 thousand, $686 thousand and $842 thousand, respectively. Employee benefit expense was calculated on the basis of the actuarial valuations in December 31, 2022 and 2021.

22. EQUITY

a. Share capital

Ordinary shares

Number of shares authorized (in thousands) Shares authorized Number of shares issued and fully paid (in thousands) Shares issued	June 30, 2023 December 31, 2022 500,000 500,000 $ 5,000,000 $ 5,000,000 309,757 309,757 $ 3,097,570 $ 3,097,570	June 30, 2022 500,000 $ 5,000,000 309,757 $ 3,097,570

Fully paid ordinary shares, which have a par value of $10, carry one vote per share and carry a right to dividends.

The Company’s 30,000 thousand shares authorized were reserved for the issuance of convertible bonds and employee share options.

27 -

b. Capital surplus

May be used to offset a deficit, distributed as cash dividends, or transferred to share capital* Issuance of ordinary shares Conversion of bonds Overdue options The difference between consideration received or paid and the carrying amount of the subsidiaries’ net assets during actual disposal or acquisition May only be used to offset a deficit Share of changes in capital surplus of associates or joint venture Others May not be used for any purpose Employee share options	June 30, 2023 December 31, 2022 $ 611,776 $ 611,776 977,028 977,028 73,377 73,377 331 331 23,981 15,627 3,702 3,409 28,431 28,431 $ 1,718,626 $ 1,709,979	June 30, 2022 $ 611,776 977,028 73,377 331 8,681 3,412 28,431 $ 1,703,036

Such capital surplus may be used to offset a deficit; in addition, when the Company has no deficit, such capital surplus may be distributed as cash dividends or transferred to share capital (limited to a certain percentage of the Company’s capital surplus and once a year).

c. Retained earnings and dividend policy

Under the dividends policy as set forth in the amended Articles, where the Company made profit in a fiscal year, the profit shall be first utilized for paying taxes, offsetting losses of previous years, setting aside as legal reserve 10% of the remaining profit, setting aside or reversing a special reserve in accordance with the laws and regulations, and then any remaining profit together with any undistributed retained earnings shall be used by the Company’s board of directors as the basis for proposing a distribution plan, which should be resolved in the shareholders’ meeting for distribution of dividends and bonuses to shareholders. For the policies on distribution of employees’ compensation and remuneration of directors and supervisors before and after amendment, refer to employee benefits expense in Note 24(g).

Dividends are recommended by the board of directors in accordance with the Corporation’s dividend policy. Under this policy, industry trends and growth should be evaluated, investment opportunities should be fully understood, and proper capital adequacy ratios should be considered in determining the dividends to be distributed. In addition, cash dividends should not be less than 20% of the total dividends to be appropriated.

Appropriation of earnings to the legal reserve shall be made until the legal reserve equals the Company’s paid-in capital. The legal reserve may be used to offset deficits. If the Company has no deficit and the legal reserve has exceeded 25% of the Company’s paid-in capital, the excess may be transferred to capital or distributed in cash.

28 -

Items referred to under Rule No. 1010012865, Rule No. 1010047490 and Rule No. 1030006415 issued by the FSC and in the directive titled “Questions and Answers for Special Reserves Appropriated Following Adoption of IFRSs” should be appropriated to or reversed from a special reserve by the Company.

The appropriations of earnings for 2022 and 2021 that were approved in the shareholders’ meetings on May 30, 2023 and May 31, 2022, respectively. The appropriations and dividends per share were as follows:

Legal reserve Recognition (reversal) of special reserve Cash dividends	Appropriation of Earnings For the Year Ended December 31 2022 2021 $ 296,435 $ 310,870 143,071 (346,761) 2,168,299 2,323,178	Dividends Per Share (NT$)
		For the Year Ended December 31
		2022 2021 $ - $ - - - 7.0 7.5

d. Others equity items

1) Exchange differences on translating the financial statements of foreign operations

Balance at January 1 Exchange differences on translating the financial statements of foreign operations Share from associates accounted for using the equity method Balance at June 30		For the Six Months Ended June 30	For the Six Months Ended June 30
		2023 $ (450,523) (169,128) (7,495) $ (627,146)	2022 $ (559,579) 129,089 4,714 $ (425,776)

2) Unrealized gain (loss) on financial assets at FVTOCI

Balance at January 1 Recognized during the period Unrealized gain (loss) - equity instruments Share from associates accounted for using the equity method Other comprehensive income recognized in the period Cumulative unrealized gain of equity instruments transferred to retained earnings due to disposal Balance at June 30		For the Six Months Ended June 30	For the Six Months Ended June 30
		2023 $ 307,453 35,708 (72) 35,636 (71,409) $ 271,680	2022 $ 1,357,362 (687,373) (32) (687,405) (104,518) $ 565,439

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23. REVENUE

Revenue from contracts with customers Revenue from sale of goods Construction contract revenue Contract Balances Trade receivables (Note 10) Contract liabilities Construction of properties Sale of goods		For the Three Months Ended June 30 2023 2022 $ 2,422,314 $ 3,501,023 3,771 12,990 $ 2,426,085 $ 3,514,013 June 30, 2023 December 31, 2022 $ 2,582,799 $ 3,524,632 $ 39 $ 40 19,562 12,116 $ 19,601 $ 12,156		For the Six Months Ended June 30	For the Six Months Ended June 30
				2023 $ 4,718,026 6,047 $ 4,724,073 June 30, 2022 $ 3,842,476 $ 11,063 31,197 $ 42,260	2022 $ 6,706,132 24,448 $ 6,730,580 January 1, 2022 $ 4,035,315 $ 10,814 15,654 $ 26,468

The contract liabilities were unearned sales revenue and accounted for other current liabilities.

24. NET PROFIT FROM CONTINUING OPERATIONS

Net profit from continuing operations was attributable to:

a. Interest income

Bank deposits Financial assets at amortized cost Others	For the Three Months Ended June 30 2023 2022 $ 18,905 $ 2,870 1,707 2,739 1,768 883 $ 22,380 $ 6,492	For the Three Months Ended June 30 2023 2022 $ 18,905 $ 2,870 1,707 2,739 1,768 883 $ 22,380 $ 6,492		For the Six Months Ended June 30	For the Six Months Ended June 30
		2023 $ 18,905 1,707 1,768 $ 22,380		2023 $ 28,567 4,171 5,072 $ 37,810	2022 $ 4,045 5,171 1,510 $ 10,726

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b. Other income

Income from government grants Dividend income Others c. Other gains and losses Loss on disposal of property, plant and equipment Loss on disposal of non-current assets held for sale Fair value changes of financial assets and financial liabilities Financial assets mandatorily at FVTPL Net foreign exchange gains Property, plant and equipment impairment losses Depreciation of investment properties Others	For the Three Months Ended June 30 2023 2022 $ 23,986 $ 24,068 - 1,500 9,865 9,683 $ 33,851 $ 35,251 For the Three Months Ended June 30 2023 2022 $ (45) $ (1,055) - - 1,767 (4,086) 108,662 210,189 (2,437) (1,943) (6,282) (4,882) (5,376) (5,819) $ 96,289 $ 192,404	For the Three Months Ended June 30 2023 2022 $ 23,986 $ 24,068 - 1,500 9,865 9,683 $ 33,851 $ 35,251 For the Three Months Ended June 30 2023 2022 $ (45) $ (1,055) - - 1,767 (4,086) 108,662 210,189 (2,437) (1,943) (6,282) (4,882) (5,376) (5,819) $ 96,289 $ 192,404		For the Six Months Ended June 30	For the Six Months Ended June 30
				2023 2022 $ 48,023 $ 41,272 - 1,500 16,735 19,346 $ 64,758 $ 62,118 For the Six Months Ended June 30
		2023 $ (45) - 1,767 108,662 (2,437) (6,282) (5,376) $ 96,289		2023 $ (81) - 11,402 76,566 (4,256) (10,289) (4,724) $ 68,618	2022 $ (761) (249) (4,425) 339,092 (1,948) (9,705) (8,134) $ 313,870

d. Finance costs

Interest on bank loans Interest on convertible bonds Interest on lease liabilities	For the Three Months Ended June 30 2023 2022 $ 11,435 $ 9,380 2,651 2,628 10 19 $ 14,096 $ 12,027	For the Three Months Ended June 30 2023 2022 $ 11,435 $ 9,380 2,651 2,628 10 19 $ 14,096 $ 12,027		For the Six Months Ended June 30	For the Six Months Ended June 30
		2023 $ 11,435 2,651 10 $ 14,096		2023 $ 21,963 5,267 23 $ 27,253	2022 $ 17,736 5,221 41 $ 22,998

31 -

e. Depreciation and amortization

Property, plant and equipment Investment properties Right-of-use assets Intangible assets An analysis of deprecation by function Operating costs Operating expenses Other gains and losses An analysis of amortization by function Operating costs Operating expenses	For the Three Months Ended June 30 2023 2022 $ 289,672 $ 301,584 6,282 4,882 1,913 1,940 4,142 5,299 $ 302,009 $ 313,705 $ 217,932 $ 239,170 73,653 64,354 6,282 4,882 $ 297,867 $ 308,406 $ 35 $ 49 4,107 5,250 $ 4,142 $ 5,299	For the Three Months Ended June 30 2023 2022 $ 289,672 $ 301,584 6,282 4,882 1,913 1,940 4,142 5,299 $ 302,009 $ 313,705 $ 217,932 $ 239,170 73,653 64,354 6,282 4,882 $ 297,867 $ 308,406 $ 35 $ 49 4,107 5,250 $ 4,142 $ 5,299		For the Six Months Ended June 30	For the Six Months Ended June 30
		2023 $ 289,672 6,282 1,913 4,142 $ 302,009 $ 217,932 73,653 6,282 $ 297,867 $ 35 4,107 $ 4,142		2023 $ 595,881 10,289 3,847 7,726 $ 617,743 $ 452,097 147,631 10,289 $ 610,017 $ 70 7,656 $ 7,726	2022 $ 586,487 9,705 3,865 10,551 $ 610,608 $ 469,572 120,780 9,705 $ 600,057 $ 49 10,502 $ 10,551

f. Employee benefits expense

Post-employment benefits (Note 21) Defined contribution plans Defined benefit plans Other employee benefits Payroll expense Labor and health insurance Others An analysis of employee benefits expense by function Operating costs Operating expenses		For the Three Months Ended June 30 2023 2022 $ 28,875 $ 27,049 343 421 29,218 27,470 535,080 640,546 31,889 34,712 22,885 10,104 589,554 685,362 $ 619,072 $ 712,832 $ 359,643 $ 435,354 259,429 277,478 $ 619,072 $ 712,832		For the Six Months Ended June 30	For the Six Months Ended June 30
		2023 $ 28,875 343 29,218 535,080 31,889 22,885 589,554 $ 619,072 $ 359,643 259,429 $ 619,072		2023 $ 56,280 686 56,966 1,050,324 69,903 45,396 1,165,623 $ 1,222,589 $ 718,389 504,200 $ 1,222,589	2022 $ 56,369 842 57,211 1,313,196 69,307 28,869 1,411,372 $ 1,468,583 $ 835,719 632,864 $ 1,468,583

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g. Employees’ compensation and remuneration of directors

The Company accrued employees’ compensation and remuneration of directors at the rates no less than 3% and no higher than 2%, respectively, of net profit before income tax, employees’ compensation, and remuneration of directors. The employees’ compensation and remuneration of directors for the three and six months ended June 30, 2023 and 2022, respectively, were as follows:

Accrual rate

Employees’ compensation Remuneration of directors	For the Three Months Ended June 30 2023 2022 9.0% 9.0% 1.5% 1.5%	For the Six Months Ended June 30
		2023 2022 9.0% 9.0% 1.5% 1.5%

Amount

Employees’ compensation Remuneration to directors	For the Three Months Ended June 30 2023 2022 $ 48,254 $ 97,960 $ 8,042 $ 16,327	For the Three Months Ended June 30 2023 2022 $ 48,254 $ 97,960 $ 8,042 $ 16,327		For the Six Months Ended June 30	For the Six Months Ended June 30
		2023 $ 48,254 $ 8,042		2023 $ 81,498 $ 13,583	2022 $ 176,526 $ 29,421

If there is a change in the amounts after the annual consolidated financial statements are authorized for issue, the differences are recorded as a change in the accounting estimate.

The employees’ compensation and remuneration of directors for the years ended December 31, 2022 and 2021 which were approved by the Company’s board of directors on March 6, 2023 and March 7, 2022, respectively, were as follows:

Employees’ compensation Remuneration of directors	For the Year Ended December 31	For the Year Ended December 31
	2022 Cash Share $ 330,344 $ - 55,057 -	2021
		Cash Share $ 354,226 $ - 59,038 -

There was no difference between the actual amounts of employees’ compensation and remuneration of directors and supervisors paid and the amounts recognized in the consolidated financial statements for the years ended December 31, 2022 and 2021.

Information on the employees’ compensation and remuneration of directors resolved by the Company’s board of directors is available at the Market Observation Post System website of the Taiwan Stock Exchange.

33 -

25. INCOME TAXES RELATING TO CONTINUING OPERATIONS

a. Income tax recognized in profit or loss

Major components of tax expense were as follows:

Current tax In respect of the current period Income tax on unappropriated earnings Adjustments for prior periods Deferred tax In respect of the current period Income tax expense recognized in profit or loss	For the Three Months Ended June 30 2023 2022 $ 125,244 $ 168,975 8,347 28,817 (10,258) (28,503) (47,640) 21,717 $ 75,693 $ 191,006	For the Three Months Ended June 30 2023 2022 $ 125,244 $ 168,975 8,347 28,817 (10,258) (28,503) (47,640) 21,717 $ 75,693 $ 191,006		For the Six Months Ended June 30	For the Six Months Ended June 30
		2023 $ 125,244 8,347 (10,258) (47,640) $ 75,693		2023 $ 164,873 8,347 (10,258) (22,967) $ 139,995	2022 $ 280,214 28,817 (28,503) 51,547 $ 332,075

b. Income tax assessments

The income tax returns through 2020 had been assessed by the tax authorities.

26. EARNINGS PER SHARE

The earnings and weighted average number of ordinary shares outstanding used in the computation of earnings per share from continuing operations were as follows:

Net Profit for the Period

Profit for the period attributable to owners of the Company Interest on convertible bonds after tax Earnings used in the computation of diluted earnings per share		For the Three Months Ended June 30 2023 2022 $ 420,653 $ 840,105 2,121 2,628 $ 422,774 $ 842,733		For the Six Months Ended June 30	For the Six Months Ended June 30
		2023 $ 420,653 2,121 $ 422,774		2023 $ 707,423 4,214 $ 711,637	2022 $ 1,510,442 5,221 $ 1,515,663

34 -

Weighted average number of ordinary shares outstanding (in thousand shares):

Weighted average number of ordinary shares in the computation of basic earnings per share Effect of potentially dilutive ordinary shares: Convertible bonds Employees’ compensation Weighted average number of ordinary shares used in the computation of diluted earnings per share	For the Three Months Ended June 30 2023 2022 309,757 309,757 9,764 8,975 869 1,946 320,390 320,678	For the Three Months Ended June 30 2023 2022 309,757 309,757 9,764 8,975 869 1,946 320,390 320,678		For the Six Months Ended June 30	For the Six Months Ended June 30
		2023 309,757 9,764 869 320,390		2023 309,757 9,764 2,199 321,720	2022 309,757 8,975 3,261 321,993

The Group may settle the compensation paid to employees by cash or shares; therefore, the Group presumes that the entire amount of the compensation will be settled in shares and the resulting potential shares will be included in the weighted average number of shares outstanding used in the computation of diluted earnings per share, if the shares had a dilutive effect. Such dilutive effect of the potential shares was included in the computation of diluted earnings per share until the shareholders resolve the number of shares to be distributed to employees at their meeting in the following year.

27. NON-CASH TRANSACTIONS

The Group entered into the following non-cash investing activities which were not reflected in the consolidated statements of cash flows for the six months ended June 30, 2023 and 2022:

The Company declared cash dividends for 2022 and 2021 in June 2023 and May 2022 for $2,168,299 thousand and $2,323,178 thousand, respectively (refer to Note 22). As of June 30, 2023 and 2022, cash dividends are not yet distributed, and accounted for other payables.

28. GOVERNMENT GRANTS

In 2022, the Group received a government grant of $92,084 thousand for its investment of equipment. The amount was recognized as deferred revenue and subsequently transferred to profit or loss over the useful life of the related asset.

29. CAPITAL MANAGEMENT

The Group manages its capital to ensure that entities in the Group will be able to continue as going concerns while maximizing the return to stakeholders through the optimization of the debt and equity balance.

The capital structure of the Group consists of net debt (borrowings offset by cash and cash equivalents) and equity attributable to owners of the Company (comprising issued capital, reserves, retained earnings and other equity).

The Group is not subject to any externally imposed capital requirements.

35 -

30. FINANCIAL INSTRUMENTS

a. Fair value of financial instruments

Fair value of financial instruments not measured at fair value

The management believes the carrying amounts of financial assets and financial liabilities recognized in the consolidated financial statements approximate their fair values.

b. Fair value of financial instruments measured at fair value on a recurring basis
1) Fair value hierarchy

June 30, 2023 Financial assets at FVTPL Foreign exchange forward contracts and exchange contracts Beneficiary certificate Structured deposits Financial assets at FVTOCI Investments in equity instruments Domestic listed shares Domestic emerging shares Domestic unlisted shares Foreign unlisted shares Financial liabilities at FVTPL Foreign exchange forward contracts and exchange contracts	Level 1 $ - 283 - $ 283 $ 242,431 122,220 - - $ 364,651 $ -	Level 2 $ 8,797 - 711,669 $ 720,466 $ - - - - $ - $ 7,759	Level 3 $ - - - $ - $ - - 66,842 213,416 $ 280,258 $ -	Total $ 8,797 283 711,669 $ 720,749 $ 242,431 122,220 66,842 213,416 $ 644,909 $ 7,759

36 -

December 31, 2022

Financial assets at FVTPL Domestic listed shares Foreign exchange forward contracts and exchange contracts Beneficiary certificate Structured deposits Financial liabilities at FVTPL Foreign exchange forward contracts and exchange contracts Financial assets at FVTOCI Investments in equity instruments Domestic listed shares Domestic unlisted shares Foreign unlisted shares June 30, 2022 Financial assets at FVTPL Domestic listed shares Beneficiary certificate Structured deposits Financial assets at FVTOCI Investments in equity instruments Domestic listed shares Domestic unlisted shares Foreign unlisted shares	Level 1 $ 20,350 - 287 - $ 20,637 $ - $ 262,122 - - $ 262,122 Level 1 $ 19,575 54,038 - $ 73,613 $ 594,174 - - $ 594,174	Level 2 $ - 3,662 - 393,151 $ 396,813 $ 13,620 $ - - - $ - Level 2 $ - - 428,538 $ 428,538 $ - - - $ -	Level 3 $ - - - - $ - $ - $ - 213,170 187,241 $ 400,411 Level 3 $ - - - $ - $ - 97,740 237,849 $ 335,589	Total $ 20,350 3,662 287 393,151 $ 417,450 $ 13,620 $ 262,122 213,170 187,241 $ 662,533 Total $ 19,575 54,038 428,538 $ 502,151 $ 594,174 97,740 237,849 $ 929,763 (Continued)

37 -

Financial liabilities at FVTPL Foreign exchange forward contracts and exchange contracts	Level 1 $ -	Level 2 $ 8,341	Level 3 $ -	Total $ 8,341 (Concluded)

There were no transfers between Levels 1 and 2 for the six months ended June 30, 2023 and 2022.

2) Reconciliation of Level 3 fair value measurements of financial instruments

June 30, 2023

Financial Assets Balance at January 1, 2023 Purchases Transfer to Level 1 Recognized in other comprehensive income Effect of foreign currency exchange differences Balance at June 30, 2023	Financial Assets at FVTPL Equity Instruments $ - - - - - $ -	Financial Assets at FVTOCI
		Equity Instruments $ 400,411 40,435 (190,880) 34,551 (4,259) $ 280,258

The fair value of these shares issued by Win Win Precision Technology Co., Ltd. was transferred from Level 3 to Level 1 since the shares were listed on the Taipei Exchange on January 16, 2023.

June 30, 2022

Financial Assets Balance at January 1, 2022 Purchases Recognized in other comprehensive income Effect of foreign currency exchange differences Balance at June 30, 2022	Financial Assets at FVTPL Equity Instruments $ - - - - $ -	Financial Assets at FVTOCI
		Equity Instruments $ 310,824 20,000 274 4,491 $ 335,589

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3) Valuation techniques and inputs applied for Level 2 fair value measurement

Financial Instruments
Derivatives - foreign exchange
forward contracts and exchange
contracts

Structured deposits

Redemption options on
convertible bonds

Valuation Techniques and Inputs

Discounted cash flow.
Future cash flows are estimated based on observable forward
exchange rates at the end of the reporting period and contract
forward rates, discounted at a rate that reflects the credit risk
of various counterparties.
Discounted cash flow.
Future cash flows are discounted at a rate that reflects current
borrowing interest rates of the bond issuers at the end of the
reporting period.
Binomial tree valuation model.
Binomial tree valuation model were evaluated by the
observable closing price of the stocks, volatility, risk-free
interest rate, risk discount rate, and liquidity risk at the
balance sheet date.

4) Valuation techniques and inputs applied for the purpose of measuring Level 3 fair value measurement

The Group uses price-book ratio approach, comparing the net value per share with other public companies among similar industries or evaluating share price based on average price-book ratio of other competitors, to capture the present value of the expected future economic benefits to be derived from the ownership of these investees.

The fair values of unlisted equity securities - ROC were determined using income approach. In this approach, the discounted cash flow method was used to capture the present value of the expected future economic benefits to derived from the ownership of these investees. The significant unobservable inputs used are listed in the table below. An increase in long-term revenue growth rates or long-term pre-tax operating margin or a decrease in the WACC or discount for lack of marketability used in isolation would result in increase in the fair value.

c. Categories of financial instruments

		June 30,	December 31,	December 31,		June 30,
		2023		2022		2022
Financial assets
FVTPL
Mandatorily at FVTPL (1)	$	720,749	$	417,450	$	502,151
Financial assets at amortized cost (2)		7,641,665		8,223,316		9,078,030
Financial assets at FVTOCI
Equity instruments		644,909		662,533		929,763
Financial liabilities
FVTPL
Mandatorily at FVTPL (3)		7,759		13,620		8,341
Amortized cost (4)		7,827,424		6,814,283		9,395,947

39 -
1) The balances included the carrying amount of beneficiary certificate, foreign exchange forward contracts and exchange contracts, structured deposits, redemption options on convertible bonds and investment of equity instruments.
2) The balances included financial assets measured at amortized cost, which comprise cash and cash equivalents, notes receivable, trade receivables, other receivables and refundable deposits.
3) The balances included the carrying amount of foreign exchange forward contract and exchange contracts.
4) The balances included financial liabilities measured at amortized cost, which comprise short-term and long-term loans, short-term bills payable, bonds payable, notes payable, trade payables, other payables and guarantee deposits received.
d. Financial risk management objectives and policies

The Group’s major financial instruments included equity and debt investments, trade receivables, trade payables and borrowings. The Group’s corporate treasury function provides services to the business, coordinates access to domestic and international financial markets, and monitors and manages the financial risks relating to the operations of the Group through internal risk reports which analyze exposures by degree and magnitude of risks. These risks include market risk (including foreign currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

The Group sought to minimize the effects of these risks by using derivative financial instruments to hedge risk exposures. The use of financial derivatives was governed by the Group’s policies approved by the board of directors, which provided written principles on foreign currency risk, interest rate risk, credit risk, the use of financial derivatives and non-derivative financial instruments, and the investment of excess liquidity. Compliance with policies and exposure limits was reviewed by the internal auditors on a continuous basis. The Group did not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes.

The corporate treasury function reports quarterly to the Group’s risk management committee, an independent body that monitors risks and policies implemented to mitigate risk exposures.

1) Market risk

The Group’s activities exposed it primarily to the financial risks of changes in foreign currency exchange rates (see (a) below) and interest rates (see (b) below). The Group entered into a variety of derivative financial instruments to manage its exposure to foreign currency risk and interest rate risk, including: Foreign exchange forward contracts to hedge the exchange rate risk arising on the Group’s foreign currency monetary.

There has been no change to the Group’s exposure to market risks or the manner in which these risks were managed and measured.

a) Foreign currency risk

Several subsidiaries of the Company have foreign currency sales and purchases, which exposes the Group to foreign currency risk.

The carrying amounts of the Group’s foreign currency denominated monetary assets and monetary liabilities (including those eliminated on consolidation) at the end of the reporting period (see Note 34).

40 -

Sensitivity analysis

The Group is mainly exposed to the USD and JPY.

The following table details the Group’s sensitivity to a 1% increase and decrease in the New Taiwan dollar (the functional currency) against the relevant foreign currencies. The sensitivity rate used when reporting foreign currency risk internally to key management personnel and representing management’s assessment of the reasonably possible change in foreign exchange rates is 1%. The sensitivity analysis included only outstanding foreign currency denominated monetary items and foreign exchange forward contracts designated as cash flow hedges, and adjusts their translation at the end of the reporting period for a 1% change in foreign currency rates. The sensitivity analysis included external loans/borrowings as well as loans/borrowings to foreign operations within the Group where the denomination of the loan is in a currency other than the functional currency of the lender or the borrower. A positive number below indicates an increase in post-tax profit and other equity associated with the New Taiwan dollar strengthening 1% against the relevant currency. For a 1% weakening of the New Taiwan dollar against the relevant currency, there would be an equal and opposite impact on post-tax profit and other equity and the balances below would be negative.

Profit or loss	USD Impact For the Six Months Ended June 30 2023 2022 $ 28,697 $ 40,317	JPY Impact
		For the Six Months Ended June 30
		2023 2022 $ (1,799) $ (3,849)

i. This was mainly attributable to the exposure on outstanding on USD monetary items, which were not hedged, at the end of the reporting period.
ii. This was mainly attributable to the exposure on outstanding JPY monetary items, which were not hedged at the end of the reporting period.
b) Interest rate risk

The Group is exposed to interest rate risk because entities in the Group deposit and borrow funds at floating interest rates.

The carrying amounts of the Group’s financial assets and financial liabilities with exposure to interest rates at the end of the reporting period were as follows:

	June 30,	December 31,	June 30,
	2023	2022	2022
Fair value interest rate risk
Financial assets	$ 1,717,511	$ 1,164,521	$ 1,896,674
Financial liabilities	3,136,513	3,474,901	2,848,185
Cash flow interest rate risk
Financial assets	3,247,036	3,408,887	3,234,575
Financial liabilities	568,159	635,507	954,669

41 -

Sensitivity analysis

The sensitivity analysis below was determined based on the Group’s exposure to interest rates for both derivative and non-derivative instruments at the end of the reporting period. For floating rate liabilities, the analysis was prepared assuming the amount of each liability outstanding at the end of the reporting period was outstanding for the whole year. A 25 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates.

If interest rates had been 25 basis points higher/lower and all other variables were held constant, the Group’s pre-tax profit for the six months ended June 30, 2023 and 2022 would increase by $3,349 thousand and $2,850 thousand, respectively, which was mainly attributable to the Group’s exposure to interest rates on its floating rate bank deposits and bank borrowings.

2) Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in a financial loss to the Group. As at the end of the reporting period, the Group’s maximum exposure to credit risk, which would cause a financial loss to the Group due to the failure of the counterparty to discharge its obligation and due to the financial guarantees provided by the Group, could be equal to the total of the following:

a) The carrying amount of the respective recognized financial assets as stated in the balance sheets; and
b) The maximum amount the entity would have to pay if the financial guarantee is called upon, irrespective of the likelihood of the guarantee being exercised.

3) Liquidity risk

The Group manages liquidity risk by monitoring and maintaining a level of cash and cash equivalents deemed adequate to finance the Group’s operations and mitigate the effects of fluctuations in cash flows. In addition, management monitors the utilization of bank borrowings and ensures compliance with loan covenants.

The Group relies on bank borrowings as a significant source of liquidity. As of June 30, 2023, December 31, 2022 and June 30, 2022, the Group had available unutilized short-term bank loan facilities of $7,137,281 thousand, $6,774,251 thousand and $6,739,562 thousand, respectively.

42 -

Liquidity and interest rate risk tables for non-derivative financial liabilities

The following table details the Group’s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The table has been drawn up based on the undiscounted cash flows of financial liabilities from the earliest date on which the Group can be required to pay. The table included both interest and principal cash flows. Specifically, bank loans with a repayment on demand clause were included in the earliest time band regardless of the probability of the banks choosing to exercise their rights. The maturity dates for other non-derivative financial liabilities were based on the agreed repayment dates.

To the extent that interest flows are floating rate, the undiscounted amount was derived from the interest rate curve at the end of the reporting period.

June 30, 2023

	Weighted
	Average
	Effective
	Interest Rate		Less than
	(%)		1 Year	2-3 Years	4-5 Years	5+ Years		Total
Non-derivative financial
liabilities
Trade payables	-	$	892,422 $	- $	- $		- $	892,422
Other payables	-		3,150,944	-	-		-	3,150,944
Lease liabilities	0.86%-3.85%		3,107	20,036	-		-	23,143
Variable interest rate
liabilities	0.85%-0.975%		313,449	246,377	8,333		-	568,159
Fixed interest rate
liabilities	2.83%-6.23%		926,617	2,089,194	120,702		-	3,136,513
December 31, 2022
	Weighted
	Average
	Effective
	Interest Rate		Less than
	(%)		1 Year	2-3 Years	4-5 Years	5+ Years		Total
Non-derivative financial
liabilities
Trade payables	-	$	1,209,119 $	- $	- $		- $	1,209,119
Other payables	-		1,423,229	-	-		-	1,423,229
Lease liabilities	0.86%-1.27%		3,088	3,399	-		-	6,487
Variable interest rate
liabilities	0.725%-0.975%		248,087	354,087	33,333		-	635,507
Fixed interest rate
liabilities	0.9%-5.49%		1,156,448	2,279,272	39,181		-	3,474,901
June 30, 2022
	Weighted
	Average
	Effective
	Interest Rate		Less than
	(%)		1 Year	2-3 Years	4-5 Years	5+ Years		Total
Non-derivative financial
liabilities
Trade payables	-	$	1,922,092 $	- $	- $		- $	1,922,092
Other payables	-		3,591,440	-	-		-	3,591,440
Lease liabilities	0.86%-1.27%		3,070	3,145	-		-	6,215
Variable interest rate
liabilities	0.35%-0.91%		191,753	704,583	58,333		-	954,669
Fixed interest rate
liabilities	0.68%-3.85%		972,317	1,875,868	-		-	2,848,185

43 -

The amounts included above for variable interest rate instruments for both non-derivative financial assets and liabilities was subject to change if changes in variable interest rates differ from those estimates of interest rates determined at the end of the reporting period.

Liquidity and interest rate risk tables for derivative financial liabilities

The following table details the Group’s liquidity analysis of its derivative financial instruments. The table is based on the undiscounted contractual net cash inflows and outflows on derivative instruments that settle on a net basis, and the undiscounted gross inflows and outflows on those derivatives that require gross settlement.

June 30, 2023

On Demand or Less than 1 Month 1-3 Months 3 Months to 1 Year Net settled Foreign exchange forward contracts and exchange contracts $ 3,508 $ (1,881) $ (589) December 31, 2022 On Demand or Less than 1 Month 1-3 Months 3 Months to 1 Year Net settled Foreign exchange forward contracts and exchange contracts $ (1,549) $ (9,097) $ 688 June 30, 2022 On Demand or Less than 1 Month 1-3 Months 3 Months to 1 Year Net settled Foreign exchange forward contracts and exchange contracts $ (8,506) $ (56) $ 221	1-5 Years $ - 1-5 Years $ - 1-5 Years $ -	5+ Years $ -
		5+ Years $ -
		5+ Years $ -

44 -

31. TRANSACTIONS WITH RELATED PARTY

Balances and transactions between the Company and its subsidiaries, which are related parties of the Company, have been eliminated on consolidation and are not disclosed in this note. Details of transactions between the Group and other related parties are disclosed below.

a. Related Party Name and Category

Related Party Name Tai-shing Electronics Components Corp. TSE Technology (Ningbo) Co., Ltd. EcLife Co., Ltd. Ningbo Longying Semiconductor Co., Ltd. PETER LIN	Related Party Category
	Associates Associates Other associates Other associates Chairman of the Company

b. Sales of goods

Related Party Line Items Categories Sales Associates Other associates Chairman of the Company	For the Three Months Ended June 30 2023 2022 $ 7,871 $ 20,749 2,271 4,318 645 - $ 10,787 $ 25,067	For the Three Months Ended June 30 2023 2022 $ 7,871 $ 20,749 2,271 4,318 645 - $ 10,787 $ 25,067	For the Six Months Ended June 30	For the Six Months Ended June 30	For the Six Months Ended June 30
		2023 $ 7,871 2,271 645 $ 10,787		2023 $ 15,127 3,447 645 $ 19,219	2022 $ 52,419 7,269 - $ 59,688

Selling prices and payment terms offered to related parties were similar with those offered to third parties.

c. Purchases of goods

Related Party Categories Others associates	For the Three Months Ended June 30 2023 2022 $ 114 $ 907	For the Three Months Ended June 30 2023 2022 $ 114 $ 907		For the Six Months Ended June 30	For the Six Months Ended June 30
		2023 $ 114		2023 $ 232	2022 $ 2,221

Purchase prices and payment terms offered by related parties were similar with those offered by third parties.

d. Operating expenses

Related Party Categories Other associates	For the Three Months Ended June 30 2023 2022 $ 154 $ 700	For the Three Months Ended June 30 2023 2022 $ 154 $ 700		For the Six Months Ended June 30	For the Six Months Ended June 30
		2023 $ 154		2023 $ 257	2022 $ 1,226

45 -

e. Commission revenue

Related Party Categories Associates	For the Three Months Ended June 30 2023 2022 $ 371 $ 379	For the Three Months Ended June 30 2023 2022 $ 371 $ 379		For the Six Months Ended June 30	For the Six Months Ended June 30
		2023 $ 371		2023 $ 748	2022 $ 754

f. Rental revenue

Related Party Location Rent Collection TSE Technology (Ningbo) Co., Ltd. Building P5, 1F., No. 189, Huangshan W. Rd., Beilun Dist., Ningbo City Based on contract, and paid on a monthly basis Ningbo Longying Semiconductor Co., Ltd. Building D4, No. 189, Huangshan W. Rd., Beilun Dist., Ningbo City Based on contract, and paid on a monthly basis Tai-Shing Electronics Components Corporation 6F., No. 4, Gongye 6th Rd., Pingzhen Dist., Taoyuan City 324, Taiwan Based on contract, and paid on a monthly basis		For the Three Mon	th	s EndedJune 30 2022 Amount % to Total Account Balance $ 1,150 - 45 - 880 - $ 2,075 -		For the Six Mont	hs E	ndedJune 30
		2023 Amount % to Total Account Balance $ 1,123 - 44 - 916 - $ 2,083 -				2023 Amount % to Total Account Balance $ 2,266 - 88 - 1,791 - $ 4,145 -		2022
								Amount % to Total Account Balance $ 2,284 - 89 - 1,764 - $ 4,137 -

There is no significant difference in transaction terms between related parties and unrelated parties.

g. Receivables from related parties (excluding loans to related parties)

Related Party Categories
June 30,
2023
December 31,
2022
Associates
$ 8,421
$ 8,171

Other associates
2,506
1,748
Less: Allowance for impairment loss

(68)

(68)

$ 10,859
$ 9,851

The outstanding trade receivables from related parties are unsecured.
Payables to related parties (excluding loans from related parties)
Related Party Categories
June 30,
2023
December 31,
2022
Other associates
$ 99
$ 622

June 30,
2022
$ 24,243
4,599

(68)
$ 28,774
June 30,
2022
$ 1,014

h. Payables to related parties (excluding loans from related parties)

The outstanding trade payables from related parties are unsecured.

Payment term of the transactions to related parties were similar to those for third parties.

46 -
i. Other receivables from related parties

Related Party Categories June 30, 2023 December 31, 2022 June 30, 2022 Associates $ 790 $ 635 $ 276 Other associates 5 8 9 $ 795 $ 643 $ 285 j. Other payables to related parties Related Party Categories June 30, 2023 December 31, 2022 June 30, 2022 Other associates $ 706 $ 1,250 $ 8,230 k. Prepayments for facility Related Party Categories June 30, 2023 December 31, 2022 June 30, 2022 Other associates $ 4,407 $ 4,357 $ 3,784 l. Acquisitions of property, plant and equipment For the Three Months Ended June 30 For the Six Months Ended June 30 Related Party Categories 2023 2022 2023 2022 Others associates $ 183 $ 7,002 $ 312 $ 8,202	Related Party Categories June 30, 2023 December 31, 2022 June 30, 2022 Associates $ 790 $ 635 $ 276 Other associates 5 8 9 $ 795 $ 643 $ 285 j. Other payables to related parties Related Party Categories June 30, 2023 December 31, 2022 June 30, 2022 Other associates $ 706 $ 1,250 $ 8,230 k. Prepayments for facility Related Party Categories June 30, 2023 December 31, 2022 June 30, 2022 Other associates $ 4,407 $ 4,357 $ 3,784 l. Acquisitions of property, plant and equipment For the Three Months Ended June 30 For the Six Months Ended June 30 Related Party Categories 2023 2022 2023 2022 Others associates $ 183 $ 7,002 $ 312 $ 8,202	Related Party Categories June 30, 2023 December 31, 2022 June 30, 2022 Associates $ 790 $ 635 $ 276 Other associates 5 8 9 $ 795 $ 643 $ 285 j. Other payables to related parties Related Party Categories June 30, 2023 December 31, 2022 June 30, 2022 Other associates $ 706 $ 1,250 $ 8,230 k. Prepayments for facility Related Party Categories June 30, 2023 December 31, 2022 June 30, 2022 Other associates $ 4,407 $ 4,357 $ 3,784 l. Acquisitions of property, plant and equipment For the Three Months Ended June 30 For the Six Months Ended June 30 Related Party Categories 2023 2022 2023 2022 Others associates $ 183 $ 7,002 $ 312 $ 8,202	Related Party Categories June 30, 2023 December 31, 2022 June 30, 2022 Associates $ 790 $ 635 $ 276 Other associates 5 8 9 $ 795 $ 643 $ 285 j. Other payables to related parties Related Party Categories June 30, 2023 December 31, 2022 June 30, 2022 Other associates $ 706 $ 1,250 $ 8,230 k. Prepayments for facility Related Party Categories June 30, 2023 December 31, 2022 June 30, 2022 Other associates $ 4,407 $ 4,357 $ 3,784 l. Acquisitions of property, plant and equipment For the Three Months Ended June 30 For the Six Months Ended June 30 Related Party Categories 2023 2022 2023 2022 Others associates $ 183 $ 7,002 $ 312 $ 8,202	Related Party Categories June 30, 2023 December 31, 2022 June 30, 2022 Associates $ 790 $ 635 $ 276 Other associates 5 8 9 $ 795 $ 643 $ 285 j. Other payables to related parties Related Party Categories June 30, 2023 December 31, 2022 June 30, 2022 Other associates $ 706 $ 1,250 $ 8,230 k. Prepayments for facility Related Party Categories June 30, 2023 December 31, 2022 June 30, 2022 Other associates $ 4,407 $ 4,357 $ 3,784 l. Acquisitions of property, plant and equipment For the Three Months Ended June 30 For the Six Months Ended June 30 Related Party Categories 2023 2022 2023 2022 Others associates $ 183 $ 7,002 $ 312 $ 8,202

			2023 $ 312	2022 $ 8,202

m. Compensation of key management personnel

The remuneration of directors and key executives for the three and the six months ended June 30, 2023 and 2022 were as follows:

Short-term employee benefits Post-employment benefits	For the Three Months Ended June 30 2023 2022 $ 28,577 $ 45,280 772 956 $ 29,349 $ 46,236	For the Three Months Ended June 30 2023 2022 $ 28,577 $ 45,280 772 956 $ 29,349 $ 46,236		For the Six Months Ended June 30	For the Six Months Ended June 30
		2023 $ 28,577 772 $ 29,349		2023 $ 56,908 1,722 $ 58,630	2022 $ 102,124 1,918 $ 104,042

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

47 -

32. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

The following assets were provided as collateral for bank borrowings:

Building and equipment, net Investment property Pledged deposits Right-of-use assets	June 30, 2023 December 31, 2022 $ 220,659 $ 247,376 12,061 13,147 86,340 70,259 10,285 10,710 $ 329,345 $ 341,492	June 30, 2022 $ 270,177 14,016 66,287 10,946 $ 361,426

33. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

In addition to those disclosed in other notes, significant commitments and contingencies of the Group were as follows:

a. Unused letters of credit amounted to approximately JPY38,400 thousand and EUR339 thousand as of June 30, 2023.
b. On November 8, 2021, the board of directors of the Company approved its subsidiary TETC CORP. NINGBO to construct a plant project, with an estimated investment of RMB145,000 thousand. On April 19, 2022, the Company signed a construction contract. The total contract amount divided into paid and unpaid is as follows:

Unit: In Thousands of Foreign Currencies

Contract Amount Property, plant and equipment RMB 101,880 As of June 30, 2023, the Group unrecognized commitments were as Contract Amount Acquisition of machinery and equipment $ 233,775 Acquisition of machinery and equipment RMB 45,217 Acquisition of machinery and equipment JPY 153,190 Acquisition of machinery and equipment US$ 1,124	Paid Amount Unpaid Amount RMB 44,198 RMB 57,682 follows: Paid Amount Unpaid Amount $ 106,900 $ 126,875 RMB 19,267 RMB 25,950 JPY 77,810 JPY 75,380 US$ 736 US$ 388

c. As of June 30, 2023, the Group unrecognized commitments were as follows:
48 -

34. EXCHANGE RATE OF FINANCIAL ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

The significant financial assets and liabilities of entities in Group denominated in foreign currencies aggregated by the foreign currencies other than functional currencies and the related exchange rates between foreign currencies and respective functional currencies were as follows:

June 30, 2023

		Foreign		Carrying
	Currencies		Exchange Rate	Amount
Financial assets
Monetary items
USD	$	91,848	31.1350 (USD:NTD)	$ 2,859,687
USD		5,776	7.2258 (USD:RMB)	179,836
JPY		788,431	0.2150 (JPY:NTD)	169,513
JPY		408,817	0.0499 (JPY:RMB)	87,896
JPY		51,467	0.0069 (JPY:USD)	11,065
Financial liabilities
Monetary items
USD		3,513	31.1350 (USD:NTD)	109,377
USD		1,943	7.2258 (USD:RMB)	60,495
JPY		1,010,347	0.2150 (JPY:NTD)	217,225
JPY		1,058,015	0.0499 (JPY:RMB)	227,473
JPY		16,905	0.0069 (JPY:USD)	3,635
December 31, 2022
		Foreign		Carrying
	Currencies		Exchange Rate	Amount
Financial assets
Monetary items
USD	$	139,256	30.7080 (USD:NTD)	$ 4,276,273
USD		4,148	6.9646 (USD:RMB)	127,377
JPY		533,718	0.2324 (JPY:NTD)	124,036
JPY		306,521	0.0527 (JPY:RMB)	71,245
JPY		110,132	0.0076 (JPY:USD)	25,595
Financial liabilities
Monetary items
USD		25,887	30.7080 (USD:NTD)	794,938
USD		8,133	6.9646 (USD:RMB)	249,748
JPY		1,338,747	0.2324 (JPY:NTD)	311,125
JPY		974,054	0.0527 (JPY:RMB)	226,370
JPY		97,085	0.0076 (JPY:USD)	22,563

49 -

June 30, 2022

		Foreign		Carrying
	Currencies		Exchange Rate	Amount
Financial assets
Monetary items
USD	$	144,220	29.726 (USD:NTD)	$ 4,287,084
USD		6,951	6.7114 (USD:RMB)	206,625
JPY		623,696	0.2182 (JPY:NTD)	136,090
JPY		498,168	0.0493 (JPY:RMB)	108,700
JPY		517,376	0.0073 (JPY:USD)	112,891
Financial liabilities
Monetary items
USD		7,477	29.726 (USD:NTD)	222,261
USD		8,064	6.7114 (USD:RMB)	239,710
JPY		1,737,054	0.2182 (JPY:NTD)	379,025
JPY		1,432,149	0.0493 (JPY:RMB)	312,495
JPY		234,152	0.0073 (JPY:USD)	51,092

For the three and the six months ended June 30, 2023 and 2022, realized and unrealized net foreign exchange gains (losses) were $108,662 thousand, $210,189 thousand, $76,566 thousand and $339,092 thousand, respectively. It is impractical to disclose net foreign exchange gains (losses) by each significant foreign currency due to the variety of the foreign currency transactions and functional currencies of the group entities.

35. SEPARATELY DISCLOSED ITEMS

a. Information about significant transactions and investees:
1) Lending funds to others. (None)
2) Providing endorsements or guarantees for others. (None)
3) Holding of securities at the end of the period. (Table 1)
4) Aggregate purchases or sales of the same securities reaching NT$300 million or 20 percent of paid-in capital or more. (None)
5)Acquisition of individual real estate at costs of at least NT$300 million or 20% of the paid-in capital. (None)
6) Disposal of real estate at prices of at least NT$300 million or 20% of the paid-in capital. (None)
7) Purchases or sales of goods or to related parties reaching least NT$100 million or 20% of the paid-in capital. (Table 2)
8) Trade receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital. (Table 3)
50 -
9) Trading in derivative instruments. (Note 7)
10) Others: Intercompany relationships and significant intercompany transactions. (Table 7)
b. Information on investees. (Table 4)
c. Information on investments in mainland China
1) Information on any investee company in mainland China, showing the name, principal business activities, paid-in capital, method of investment, inward and outward remittance of funds, ownership percentage, net income of investees, investment income or loss, carrying amount of the investment at the end of the period, repatriations of investment income, and limit on the amount of investment in the mainland China area. (Table 5)
2) Any of the following significant transactions with investee companies in mainland China, either directly or indirectly through a third party, and their prices, payment terms, and unrealized gains or losses: (Table 6)
- a) The amount and percentage of purchases and the balance and percentage of the related payables at the end of the period.
- b) The amount and percentage of sales and the balance and percentage of the related receivables at the end of the period.
- c) The amount of property transactions and the amount of the resultant gains or losses.
- d) The balance of negotiable instrument endorsements or guarantees or pledges of collateral at the end of the period and the purposes.
- e) The highest balance, the end of period balance, the interest rate range, and total current period interest with respect to financing of funds.
- f) Other transactions that have a material effect on the profit or loss for the period or on the financial position, such as the rendering or receipt of services.
d. Information of major shareholders: List all shareholders with ownership of 5% or greater showing the name of the shareholder, the number of shares owned, and percentage of ownership of each shareholder (None)

36. SEGMENT INFORMATION

Information reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance focuses on the types of goods or services delivered or provided. Specifically, the Group’s reportable segments under IFRS 8 “Operating Segments” were as follows:

a. Crystal segment

The chief operating decision maker see every crystal selling unit in Taiwan and China as an operating segment. While preparing the financial report, the Group considers the following reasons:

1) The similar gross profit between the selling units.
2) The similar product’s nature and manufacturing process.
3) The same product’s delivery type.
51 -

b. Real estate development segment

The department and sales of real estate, along with mall space leasing in Chongqing is considered a separate operating segment by the chief operating decision maker (CODM).

Segment Revenue and Results

Crystal segment Real estate development segment Continuing operations Interest income Other income Other gains and losses Finance costs Share of profit of associates accounted for using the equity method Profit before tax (continuing operations)		Segment Revenue For the Six Months Ended June 30 2023 2022 $ 4,718,026 $ 6,706,132 6,047 24,448 $ 4,724,073 $ 6,730,580		Segment Profit	Segment Profit
				For the Six Months Ended June 30
		2023 $ 4,718,026 6,047 $ 4,724,073		2023 $ 708,344 (7,702) 700,642 37,810 64,758 68,618 (27,253) 2,843 $ 847,418	2022 $ 1,472,887 (4,727) 1,468,160 10,726 62,118 313,870 (22,998) 10,641 $ 1,842,517

Segment revenue reported above represents revenue generated from external customers. There were no inter-segment sales for the six months ended June 30, 2023 and 2022

Segment profit represents the profit before tax earned by each segment without allocation of central administration costs and directors’ salaries, share of profit of associates, gains recognized on disposal of interests in former associates, rental revenue, interest income, gains or losses on disposal of property, plant and equipment, gains or losses on disposal of financial instruments, exchange gains or losses, valuation gains or losses on financial instruments, finance costs and income tax expense. This was the measure reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance.

52 -

TABLE 1

TXC CORPORATION AND SUBSIDIARIES

MARKETABLE SECURITIES HELD JUNE 30, 2023

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Holding Company Name	Type and Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account			June 30, 2023	June 30, 2023			Note
				Shares		Carrying Amount	Percentage of Ownership		Fair Value
TXC Corporation TXC (Ningbo) Corporation TXC (Chongqing) Corporation Ningbo Beilun Jingyu Trading Corporation	Stock-unlisted company Godsmith Sensor Inc RFIC Technology Corporation Gallopwave Inc. Stock-emerging shares Win Win Precision Technology Co., Ltd. Stock-listed company UPI Semiconductor Corp. Shares overseas-unlisted company Stathera IP Holdings Inc. Shares overseas-unlisted company Ningbo SJ Electronics Co., Ltd. Structured deposits Agricultural Bank of China. Structured deposits China Construction Bank Agricultural Bank of China. China CITIC Bank Fubon Bank (China) Co., Ltd Beneficiary certificate Southern Cash Fund	None TXC Corporation is a director of the Company None ″ ″ ″ None None None ″ ″ ″ None	Financial assets at FVTOCI - non-current ″ ″ ″ ″ ″ Financial assets at FVTOCI - non-current Financial assets at FVTPL - current Financial assets at FVTPL - current ″ ″ ″ Financial assets at fair value through profit or loss - current	800 3,334 6,250 1,625 826 65 567 RMB 50,115 RMB 21,047 RMB 10,003 RMB 56,560 RMB 7,525 RMB 65		$ 4,833 12,009 50,000 122,220 242,431 $ 431,493 $ 30,435 $ 54,388 $ 215,941 $ 90,690 43,102 243,712 32,424 $ 409,928 $ 283	4 12 8 3 1 1 5 -		$ 4,833 12,009 50,000 122,220 242,431 $ 431,493 $ 30,435 $ 54,388 $ 215,941 $ 90,690 43,102 243,712 32,424 $ 409,928 $ 283

(Continued)

53 -

Holding Company Name	Type and Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account			June 30, 2023	June 30, 2023			Note
				Shares		Carrying Amount	Percentage of Ownership		Fair Value
Ningbo Meishan Free Trade Port Area Ding Kai Investment Management Company Limited Chongqing Zhongyang Properties Co., Ltd. ChongQing Dingsen Commercial Management Co., Ltd.	Shares overseas-unlisted company Zhejiang Bright Semiconductor Technology Co., Ltd. Structured deposits Chongqing Rural Commercial Bank Structured deposits China Construction Bank Corporation	None None None	Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current	7,004 RMB 19,553 RMB 358		$ 128,593 $ 84,254 $ 1,546	3 - -		$ 128,593 $ 84,254 $ 1,546

(Concluded)

54 -

TABLE 2

TXC CORPORATION AND SUBSIDIARIES

TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES AMOUNTING TO AT LEAST $100 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE SIX MONTHS ENDED JUNE 30, 2023

(In Thousands of New Taiwan Dollars)

Buyer	Related Party	Relationship		Transaction Details	Transaction Details	Transaction Details	Abnormal Transaction	Abnormal Transaction	Notes/Accounts Receivable (Payable)	Notes/Accounts Receivable (Payable)	Note
			Purchase/ Sale	Amount	% to Total	Payment Terms	Unit Price	Payment Terms	Ending Balance	% to Total
TXC Corporation TXC (Ningbo) Corporation	TXC (Ningbo) Corporation TXC (Ningbo) Corporation TXC (Chongqing) Corporation TETC CORP. NINGBO TXC (Chongqing) Corporation	Subsidiary ″ ″ ″ ″	Purchase Sale Purchase Purchase Sale	$ 897,634 283,217 691,102 184,979 136,399	35 7 27 7 8	Payment term of the transactions to related parties were similar to those for third parties ″ ″ ″ ″	Its trading price depends on its function within the Group ″ ″ ″ ″	Payment term of the transactions to related parties were similar to those for third parties ″ ″ ″ ″	$ (409,680) 160,115 (420,591) (103,281) 142,922	(33) 7 (33) (8) 16

55 -

TABLE 3

TXC CORPORATION AND SUBSIDIARIES

RECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL JUNE 30, 2023

(In Thousands of New Taiwan Dollars)

Company Name	Related Party	Relationship	Ending Balance	Turnover Rate		Overdue	Amount Received in Subsequent Period	Allowance for Impairment Loss
					Amount	Action Taken
TXC Corporation TXC (Ningbo) Corporation TXC (Chongqing) Corporation TETC CORP. NINGBO	TXC (Ningbo) Corporation TXC (Chongqing) Corporation TXC Corporation TXC Corporation TXC Corporation	Subsidiary Subsidiary Parent entity Parent entity Parent entity	$ 160,115 142,922 409,680 420,591 103,281	3.36 3.37 3.66 3.97 4.11	$ - - - - -	- - - - -	$ 34,295 10,947 160,296 90,602 37,305	$ - - - - -

56 -

TABLE 4

TXC CORPORATION AND SUBSIDIARIES

NAMES, LOCATIONS, AND RELATED INFORMATION OF INVESTEES ON WHICH THE COMPANY EXERCISES SIGNIFICANT INFLUENCE FOR THE SIX MONTHS ENDED JUNE 30, 2023

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Investor Company	Investee Company	Location	Main Businesses and Products	Original Investment Amount	Original Investment Amount	As of June 30, 2023	As of June 30, 2023	As of June 30, 2023	Net Income (Losses) of the Investee	Share of Profits (Loss)	Note
				June 30, 2023	December 31, 2022	Shares (In Thousands)	Percentage of Ownership	Carrying Value
TXC Corporation	Taiwan Crystal Technology International Ltd. Taiwan Crystal Technology International (HK) Limited TXC Japan Corporation TXC Technology Inc. Tai-Shing Electronics Components Corporation TXC Europe GmbH	Western Samoa Hong Kong Japan U.S.A. Taiwan Germany	Investment management International trading Marketing activities Marketing activities Manufacture and sales of electronics products Marketing activities	$ 1,390,461 2,371 6,172 9,879 373,432 1,746	$ 1,390,461 2,371 6,172 9,879 373,432 1,746	42,835 80 2 300 8,802 50	100.00 100.00 100.00 100.00 33.34 100.00	$ 6,855,865 195,604 32,759 23,215 404,062 11,880	$ 322,769 660 3,575 1,060 29,565 2,514	$ 308,853 660 3,575 1,060 9,858 2,514

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TABLE 5

TXC CORPORATION AND SUBSIDIARIES

INFORMATION ON INVESTMENT IN MAINLAND CHINA FOR THE SIX MONTHS ENDED JUNE 30, 2023 (In Thousands of New Taiwan Dollars or U.S. Dollars)

Name of the investees in mainland China, main businesses and products, paid-in capital, method of investment, information on inflow or outflow of capital, percentage of ownership, investment income or loss, ending balance of investment, dividends remitted by the investee, and the limit of investment in mainland China:

Investee Company	Main Businesses and Products	Paid-in Capital	Method of Investment	Accumulated Outflow of Investments from Taiwan as of January 1, 2023	Investment Flows	Investment Flows	Accumulated Outflow of Investments from Taiwan as of June 30, 2023	Net Income (Loss) of the Investee	% Ownership of Direct or Indirect Investment	Investment Gain (Loss)	Carrying Amount as of June 30, 2023	Accumulated Repatriation of Investment Income as of June 30, 2023
					Outflow	Inflow
TXC (Ningbo) Corporation TXC (Chongqing) Corporation TETC CORP. NINGBO Chongqing Zhongyang Properties Co., Ltd. Ningbo Beilun Jingyu Trading Corporation Ningbo Longying Semiconductor Co., Ltd. Ningbo Meishan Free Trade Port Area Ding Kai Investment Management Company Limited ChongQing Dingsen Commercial Management Co., Ltd. Shanghai JCH Co., Ltd	Research and development, manufacture, and sale of quartz elements and related electronic products Research and development, manufacture, and sale of quartz elements and related electronic products Research and development, manufacture, and sale of quartz elements and related electronic products Properties development International trading Research and development in integrated circuit Investment management Property management Marketing activities and Technical Services	$ 2,350,052 1,162,074 433,440 684,908 7,090 246,257 160,043 4,390 2,238	Indirect investment of the Corporation in mainland China through the Corporation’s subsidiary in a third region Other investment of the Corporation in mainland China Other investment of the Corporation in mainland China Other investment of the Corporation in mainland China Other investment of the Corporation in mainland China Other investment of the Corporation in mainland China Other investment of the Corporation in mainland China Other investment of the Corporation in mainland China Other investment of the Corporation in mainland China	$ 1,427,630 - - - - - - - -	$ - - - - - - - - -	$ - - - - - - - - -	$ 1,427,630 - - - - - - - -	$ 322,762 63,683 100,335 (13,169) 11 (23,185) - (1,017) (960)	100.00 100.00 100.00 100.00 100.00 29.37 100.00 100.00 100.00	$ 322,762 63,683 100,335 (13,169) 11 (7,015) - (1,017) (960)	$ 6,922,501 1,672,499 1,015,385 782,054 6,080 56,842 128,858 (2,188) 3,086	$ 1,039,001 306,500 - - - - - - -
												(Continued)

58 -

(Concluded)

Accumulated Outward Remittance for Investments in mainland China as of June 30, 2023	Investment Amounts Authorized by the Investments Commission, MOEA	Upper Limit on the Amount of Investments Stipulated by Investment Commission, MOEA
$ 1,427,630	$ 2,350,052	$ -

Note: The investment in mainland China has no maximum limit since the Company has acquired the approval from the Industrial Development Bureau for the establishment of the Company’s operating headquarters in Taiwan.

59 -

TABLE 6

FOR THE SIX MONTHS ENDED JUNE 30, 2023 (In Thousands of New Taiwan Dollars)

TXC CORPORATION AND SUBSIDIARIES

SIGNIFICANT TRANSACTIONS WITH INVESTEE COMPANIES IN MAINLAND CHINA, EITHER DIRECTLY OR INDIRECTLY THROUGH A THIRD PARTY, AND THEIR PRICES, PAYMENT TERMS, AND UNREALIZED GAINS OR LOSSES

Significant direct or indirect transactions with the investees, prices and terms of payment, unrealized gain or loss:

Company Name	Investee Company	Transaction Type	Purchase/Sale	Purchase/Sale	Price	Transaction Details	Transaction Details	Notes/Accounts Receivable (Payable)	Notes/Accounts Receivable (Payable)	Unrealized (Gain) Loss	Note
			Amount	%		Payment Term	Comparison with Normal Transaction	Ending Balance	%
TXC Corporation	TXC (Ningbo) Corporation TXC (Ningbo) Corporation TXC (Chongqing) Corporation TETC CORP. NINGBO	Purchase Sale Purchase Purchase	$ 897,634 283,217 691,102 184,979	35 7 27 7	Its trading price depends on its function within the Group ″ ″ ″	Similar with third parties ″ ″ ″	Its trading price depends on its function within the Group ″ ″ ″	$ (409,680) 160,115 (420,591) (103,281)	(33) 7 (33) (8)	$ 27,107 6,017 30,863 5,066

The transactions of properties and the profit or loss: None.
Endorsements guarantees or collateral directly or indirectly provided to the investees: None.
Financing directly or indirectly provided to the investees: None.
Other transactions that significantly impacted the current year’s profit or loss or financial position: None.
60 -

TABLE 7

TXC CORPORATION AND SUBSIDIARIES

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS FOR THE SIX MONTHS ENDED JUNE 30, 2023 (In Thousands of New Taiwan Dollars)

No.	Company Name	Counterparty	Nature of Relationship (Note 1)		Intercompany Transactions	Intercompany Transactions
				Accounts	Amount	Terms (Notes 1 and 2)	Percentage of Consolidated Total Gross Sales or Total Assets (%)
0	TXC Corporation	TXC (Ningbo) Corporation TXC (Chongqing) Corporation TETC CORP. NINGBO	a a a	Sales Purchase Trade receivables Trade payables Purchase Trade payables Sales Purchase Trade payables	$ 283,217 897,634 160,115 409,680 691,102 420,591 25,815 184,979 103,281	a a a a a a a a a	6 19 1 2 15 2 1 4 1
1	TXC (Ningbo) Corporation	TXC (Chongqing) Corporation TETC CORP. NINGBO	c c	Purchase Sales Trade receivables Trade payables Sales	88,838 136,399 142,922 61,758 23,206	c c c c c	2 3 1 - -

Note 1: a. Represent the transactions from parent company to subsidiary. c. Represent the transactions between subsidiaries.

Note 2: For the six months ended June 30, 2023, the selling price and purchasing price were not significantly different from those of third parties, except those for TXC (Ningbo) Corporation, TXC (Chongqing) Corporation, TETC CORP. NINGBO and Taiwan Crystal Technology (HK) Limited, which is depending on its function within the Group.

Note 3: The company may decide whether to list the material transactions in this table according to the principle of materiality.

61 -

AI assistant

TXC — Interim / Quarterly Report 2023

52274_rns_2023-11-13_1bf6a760-dd4d-4c4a-9b60-a01d936be7cb.pdf

TXC CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In Thousands of New Taiwan Dollars)

TXC CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

TXC CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

TXC CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

TXC CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)

TXC CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)

TXC CORPORATION AND SUBSIDIARIES

1. GENERAL INFORMATION

2. APPROVAL OF FINANCIAL STATEMENTS

3. APPLICATION OF NEW, AMEND AND REVISED STANDARDS, AND INTERPRETATIONS

4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

1) Retirement benefits

5. MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

6. CASH AND CASH EQUIVALENTS

7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

9. FINANCIAL ASSETS AT AMORTIZED COST

10. NOTES RECEIVABLE, TRADE RECEIVABLES AND OTHER RECEIVABLES

11. INVENTORIES

12. SUBSIDIARIES

Subsidiaries Included in the Consolidated Financial Statements

13. NON-CURRENT ASSETS CLASSIFIED AS HELD FOR SALE

14. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

b. Investment joint venture

15. PROPERTY, PLANT AND EQUIPMENT

16. LEASE ARRANGEMENTS

a. Right-of-use assets

c. Material lease-in activities and terms

d. Other lease information

17. INVESTMENT PROPERTIES

18. BORROWINGS

a. Short-term borrowings

b. Short-term bills payable

c. Long-term borrowings

19. BONDS PAYABLE

20. OTHER LIABILITIES

21. RETIREMENT BENEFIT PLANS

a. Defined contribution plans

b. Defined benefit plans

22. EQUITY

Ordinary shares

b. Capital surplus

c. Retained earnings and dividend policy

d. Others equity items

23. REVENUE

24. NET PROFIT FROM CONTINUING OPERATIONS

b. Other income

e. Depreciation and amortization

Accrual rate

Amount

25. INCOME TAXES RELATING TO CONTINUING OPERATIONS

26. EARNINGS PER SHARE

Net Profit for the Period

27. NON-CASH TRANSACTIONS

28. GOVERNMENT GRANTS

29. CAPITAL MANAGEMENT

30. FINANCIAL INSTRUMENTS

Fair value of financial instruments not measured at fair value

December 31, 2022

June 30, 2023

June 30, 2022

1) Market risk

a) Foreign currency risk

Sensitivity analysis

Sensitivity analysis

2) Credit risk

3) Liquidity risk

Liquidity and interest rate risk tables for non-derivative financial liabilities

TXC Interim / Quarterly Report 2023