TXC - Interim / Quarterly Report 2023

TXC Corporation and Subsidiaries Consolidated Financial Statements for the Nine Months Ended September 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) Finance lease receivables - current (Note 11) Other receivables Other receivables from related parties (Note 31) Current tax assets (Note 26) Inventories (Note 12) Non-current assets held for sale (Note 14) 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 15) Property, plant and equipment (Note 16) Right-of-use assets (Note 17) Investment properties (Note 18) Other intangible assets Deferred tax assets (Note 26) Finance lease receivables - non-current (Note 11) Prepayment for equipment Other non-current assets Total non-current assets TOTAL LIABILITIES AND EQUITY CURRENT LIABILITIES Short-term borrowings (Note 19) Short-term bills payables (Note 19) Financial liabilities at fair value through profit or loss - current (Note 7) Contract liabilities - current (Notes 12 and 24) Trade payables Trade payables to related parties (Note 31) Other payables (Note 21) Other payables to related parties (Note 31) Current tax liabilities (Note 26) Lease liabilities - current (Note 17) Deferred revenue - current (Notes 21 and 28) Current portion of long-term liabilities (Note 19) Other current liabilities Total current liabilities NON-CURRENT LIABILITIES Bonds payable (Note 20) Long-term borrowings (Note 19) Deferred tax liabilities (Note 26) Lease liabilities - non-current (Note 17) Deferred revenue - non-current (Notes 21 and 28) Net defined benefit liabilities - non-current (Note 22) Guarantee deposits received Total non-current liabilities Total liabilities EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY (Note 23) 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		September 30, 2023 Amount % $ 3,521,318 19 625,497 3 104,103 1 74,918 - 3,334,250 18 16,805 - 4,123 - 30,030 - 1,402 - 80,200 - 2,382,000 13 - - 114,218 1 10,288,864 55 566,831 3 137,240 1 449,055 3 5,970,121 32 225,041 1 565,118 3 51,939 - 47,215 - 6,867 - 277,192 2 10,907 - 8,307,526 45 $ 18,596,390 100 $ 250,243 1 - - 2,244 - 2,263 - 1,209,748 7 966 - 955,569 5 314 - - - 6,109 - 40,901 - 2,004,178 11 61,685 - 4,534,220 24 - - 1,988,037 11 111,998 1 27,991 - 92,257 1 26,604 - 78,819 - 2,325,706 13 6,859,926 37 3,097,570 17 1,718,495 9 2,243,247 12 143,071 1 4,647,263 25 7,033,581 38 (304,730) (2) 191,548 1 (113,182) (1) 11,736,464 63 $ 18,596,390 100		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		September 30, 2022
						Amount % $ 3,608,421 18 413,424 2 353,953 2 30,817 - 3,907,131 20 26,455 - - - 52,848 - 1,016 - - - 3,052,127 15 4,985 - 113,582 1 11,564,759 58 658,948 3 - - 459,444 2 6,312,502 32 208,921 1 490,778 3 55,980 - 53,715 - - - 185,029 1 12,077 - 8,437,394 42 $ 20,002,153 100 $ 488,350 3 89,420 1 10,048 - 41 - 1,870,284 9 112 - 1,223,460 6 7,520 - 182,672 1 3,079 - 23,827 - 757,041 4 47,280 - 4,703,134 24 1,180,604 6 1,743,192 9 111,897 1 2,372 - 66,010 - 52,727 - 81,631 - 3,238,433 16 7,941,567 40 3,097,570 15 1,709,982 8 1,946,812 10 - - 5,365,011 27 7,311,823 37 (345,765) (2) 286,976 2 (58,789) - 12,060,586 60 $ 20,002,153 100

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)

SALES (Note 24) COST OF GOODS SOLD (Note 25) GROSS PROFIT OPERATING EXPENSES (Note 25) Selling and marketing expenses General and administrative expenses Research and development expenses Expected credit gain reversal of trade receivables Total operating expenses PROFIT FROM OPERATIONS NON-OPERATING INCOME AND EXPENSES Interest income (Note 25) Other income (Note 25) Other gains and losses (Note 25) Finance costs (Note 25) Share of profit of associates and joint ventures (Note 15) Total non-operating income and expenses PROFIT BEFORE INCOME TAX INCOME TAX EXPENSE (Note 26) NET PROFIT FOR THE PERIOD OTHER COMPREHENSIVE LOSS Items that will not be reclassified subsequently to profit or loss: Unrealized 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 September 30	For the Three Months Ended September 30	For the Three Months Ended September 30		For the Nine Months	Ended September 30	Ended September 30
		2023		2022		2023		2022
		Amount % $ 3,085,915 100 (1,999,149) (65) 1,086,766 35 119,166 4 163,570 5 253,902 8 - - 536,638 17 550,128 18 18,121 1 56,416 2 111,435 4 (16,047) (1) 1,099 - 171,024 6 721,152 24 (122,892) (4) 598,260 20 (64,137) (2) - - (64,137) (2)		Amount % $ 3,431,726 100 (2,127,419) (62) 1,304,307 38 130,083 4 167,127 5 287,303 8 (40) - 584,473 17 719,834 21 6,492 - 55,828 2 272,946 8 (12,048) - 4,190 - 327,408 10 1,047,242 31 (194,782) (6) 852,460 25 (278,463) (8) - - (278,463) (8)		Amount % $ 7,809,988 100 (5,097,719) (65) 2,712,269 35 328,133 4 432,847 6 700,519 9 - - 1,461,499 19 1,250,770 16 55,931 1 121,174 2 180,053 2 (43,300) (1) 3,942 - 317,800 4 1,568,570 20 (262,887) (3) 1,305,683 17 (28,429) (1) (8) - (28,437) (1)		Amount % $ 10,162,306 100 (6,276,998) (62) 3,885,308 38 403,736 4 500,472 5 793,146 8 (40) - 1,697,314 17 2,187,994 21 17,218 - 117,946 1 586,816 6 (35,046) - 14,831 - 701,765 7 2,889,759 28 (526,857) (5) 2,362,902 23 (965,836) (9) (8) - (965,844) (9) (Continued)

TXC CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

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

For the Three Months Ended September 30	For the Three Months Ended September 30	For the Nine Months	Ended September 30
2023	2022	2023	2022
Amount % $ 317,434 10 4,982 - 322,416 10 258,279 8 $ 856,539 28 $ 1.94 $ 1.87	Amount % $ 79,182 2 829 - 80,011 2 (198,452) (6) $ 654,008 19 $ 2.75 $ 2.64	Amount % $ 148,306 2 (2,513) - 145,793 2 117,356 1 $ 1,423,039 18 $ 4.22 $ 4.07	Amount % $ 208,271 2 5,543 - 213,814 2 (752,030) (7) $ 1,610,872 16 $ 7.63 $ 7.31


$	$	$	$

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 23) Legal reserve appropriated Special reserve Cash dividends distributed by the Company Net profit for the nine months ended September 30, 2022 Other comprehensive income (loss) for the nine months ended September 30, 2022, net of income tax Total comprehensive income (loss) for the nine months ended September 30, 2022 Disposal of investments in equity instruments designated as at fair value through other comprehensive income Surplus donated Changes in capital surplus from investment in associates and joint ventures accounted for using the equity method BALANCE AT SEPTEMBER 30, 2022 BALANCE AT JANUARY 1, 2023 Appropriation of 2022 earnings (Note 23) Legal reserve appropriated Special reserve Cash dividends distributed by the Company Net profit for the nine months ended September 30, 2023 Other comprehensive income (loss) for the nine months ended September 30, 2023, net of income tax Total comprehensive income (loss) for the nine months ended September 30, 2023 Equity component of convertible bonds issued by the Company Donations from shareholders Other changes in capital surplus BALANCE AT SEPTEMBER 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 - - - - - - - - 213,814 (965,868) 213,814 (965,868) - (104,518) - - - - $ (345,765) $ 286,976 $ (450,523) $ 307,453 - - - - - - - - 145,793 (28,501) 145,793 (28,501) - (87,404) - - - - $ (304,730) $ 191,548	Total Equity $ 12,759,694 - - (2,323,178) 2,362,902 (752,030) 1,610,872 - 283 12,915 $ 12,060,586 $ 12,473,208 - - (2,168,299) 1,305,683 117,356 1,423,039 - 162 8,354 $ 11,736,464
	Shares (In Thousands) Share Capital Capital Surplus 309,757 $ 3,097,570 $ 1,696,784 - - - - - - - - - - - - - - - - - - - - - - - 283 - - 12,915 309,757 $ 3,097,570 $ 1,709,982 309,757 $ 3,097,570 $ 1,709,979 - - - - - - - - - - - - - - - - - - - - - - - 162 - - 8,354 309,757 $ 3,097,570 $ 1,718,495	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) - - 2,362,902 - - 24 - - 2,362,926 - - 104,518 - - - - - - $ 1,946,812 $ - $ 5,365,011 $ 1,946,812 $ - $ 5,861,917 296,435 - (296,435) - 143,071 (143,071) - - (2,168,299) - - 1,305,683 - - 64 - - 1,305,747 - - 87,404 - - - - - - $ 2,243,247 $ 143,071 $ 4,647,263

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 Expected credit loss (reversed) recognized on trade receivables 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 Gain 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 Gain on modifications of lease 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 - current Trade payables Trade payables to related parties Other payables Other payables to related parties Other current liabilities Net defined benefit liabilities Deferred revenue Cash generated from operations Interest paid Income tax paid Net cash generated from operating activities 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		For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2023 $ 1,568,570 900,000 13,246 - (12,733) 43,300 (55,931) (12,442) (3,942) (739) 4,170 - 11,340 (8) (42,793) 180,463 (6,954) 35,369 (759) 306,241 (16,213) 2,223 1,251 344 (464,119) (936) 22,479 (8,599) (17,553) 2,445,275 (34,437) (540,898) 1,869,940 (194,646) -	2022 $ 2,889,759 913,766 16,485 (40) 2,351 35,046 (17,218) (11,486) (14,831) (5,971) 1,789 249 12,826 - (26,138) 97,233 4,439 18,393 163 (425,812) 9,897 (10,773) (219,187) (2,028) (256,350) 4,025 26,166 (9,062) (4,652) 3,029,039 (26,665) (661,048) 2,341,326 - 334,745 (Continued)

TXC CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars)

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 Proceeds from sale of financial assets at amortized cost Acquisition of investments accounted for using 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 Decrease in finance lease receivables Payments for investment properties Increase in prepayments for equipment Interest received Dividend received Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Repayments of short-term borrowings Proceeds from long-term borrowings Repayments of long-term borrowings Proceeds of guarantee deposits received Repayment of the principal portion of lease liabilities Dividends paid to owners of the company Other changes in capital surplus Net cash used in financing activities EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCE OF CASH HELD IN FOREIGN CURRENCIES NET DECREASE 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 Nine Months Ended September 30	For the Nine Months Ended September 30
		2023 $ (40,435) 111,322 - 113,851 - - (479,221) 5,315 (8,597) 4,281 27 (182,654) 55,820 32,687 (582,250) (255,405) 1,672,432 (1,291,432) 7,292 (5,479) (2,168,299) 162 (2,040,729) 51,747 (701,292) 4,222,610 $ 3,521,318	2022 $ (25,360) 117,447 (58,863) - (11,203) 1,745 (969,723) 8,334 (18,923) - 5,281 - 17,050 29,090 (570,380) (28,778) 875,776 (344,089) 11,141 (2,285) (2,323,178) 283 (1,811,130) 16,960 (23,224) 3,631,645 $ 3,608,421

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

(Concluded)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED SEPTEMBER 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 November 6, 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 endorsed by the FSC for application starting from 2024

Effective Date New, Amended and Revised Standards and Interpretations Announced by IASB (Note 1)

Amendments to IFRS 16 “Leases Liability in a Sale and Leaseback” January 1, 2024 (Note 2) 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 (Note 3)

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 amendments provide some transition relief regarding disclosure requirements.

1) 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 a way that it does not recognize any amount of the gain or loss that relates to the right of use it retains. 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.

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 are in existence 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 that may have difficulty complying with the covenants and repay 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 could, at the option of the counterparty, result in its settlement by a transfer of the Group’s own equity instruments, and if such 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 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 that 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.

c. 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” 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 21 “Lack of Exchangeability” January 1, 2025 (Note 2)

Note 1: Unless stated otherwise, the above IFRSs are effective for annual reporting periods beginning on or after their respective effective dates.
Note 2: An entity shall apply those amendments for annual reporting periods beginning on or after January 1, 2025. Upon initial application of the amendments, the entity recognizes any effect as an adjustment to the opening balance of retained earnings. When the entity uses a presentation currency other than its functional currency, it shall, at the date of initial application, recognize any effect as an adjustment to the cumulative amount of translation differences in equity.
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.

2) Amendments to IAS 21 “Lack of Exchangeability”

The amendments stipulate that a currency is exchangeable into another currency when an entity is able to obtain the other currency within a time frame that allows for a normal administrative delay and through a market or exchange mechanism in which an exchange transaction would create enforceable rights and obligations. An entity shall estimate the spot exchange rate at a measurement date when a currency is not exchangeable into another currency to reflect the rate at which an orderly exchange transaction would take place at the measurement date between market participants under prevailing economic conditions. In this situation, the Group shall disclose information that enables users of its financial statements to understand how the currency not being exchangeable into the other currency affects, or is expected to affect, its financial performance, financial position and cash flows.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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.
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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.

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. CRITICAL 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.

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6. CASH AND CASH EQUIVALENTS

September 30,
2023
December 31,
2022
September 30,
2022
Cash on hand
$ 1,007
$ 1,179
$ 1,254
Checking accounts and demand deposits
3,340,539
3,367,422
3,230,267
Cash equivalents (investments with original
maturities of less than three months)
Time deposits
179,772
274,009
376,900
Repurchase agreements collateralized by bonds
-

580,000

-
$ 3,521,318
$ 4,222,610
$ 3,608,421
The market rate intervals of cash in bank at the end of the reporting period were as follows:
September 30,
2023
December 31,
2022
September 30,
2022
Bank time deposits
1.25%-3.9875%
0.98%-4.13%
0.73%-3.31%
Repurchase agreements collateralized by bonds
-
1.02%
-
FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS
September 30,
2023
December 31,
2022
September 30,
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)
$ 2,261
$ 3,662
$ 1,172
Non-derivative financial assets
Listed shares
28,765
20,350
17,875
Mutual funds
297
287
7,153
Hybrid financial assets
Structured deposits (a)

594,174

393,151

387,224

623,236

413,788

412,252
$ 625,497
$ 417,450
$ 413,424
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)
$ 2,244
$ 13,620
$ 10,048

12 -
a. The Group entered into structured time deposit contract with Bank during the nine months ended September 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.
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)
September 30, 2023
Knock-out forward	USD/RMB	2023.11.13	USD2,000/RMB14,720
Exchange contracts	USD/NTD	2023.10.16	USD2,000/NTD61,328
Foreign exchange forward contracts USD/NTD		2023.11.14-2023.11.27	USD4,000/NTD129,400
Sell	USD/RMB	2023.10.30-2023.12.27	USD6,500/RMB46,929
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 contracts USD/NTD		2023.01.10	USD3,000/NTD99,000
September 30, 2022
Knock-out forward	USD/JPY	2022.10.18	USD2,000/JPY295,800
Exchange contracts	USD/NTD	2022.12.12-2023.01.09	USD9,000/NTD283,660
Sell	USD/RMB	2022.10.27-2023.01.30	USD7,500/RMB51,690

The Group entered into foreign exchange forward contracts during the nine months ended September 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

	September 30,	December 31,	September 30,
	2023	2022	2022
Non-current
Domestic investments
Listed shares
UPI Semiconductor Corp.	$ 181,056	$ 262,122	$ 319,130
Emerging market shares
Win Win Precision Technology Co., Ltd.	97,644	-	-
Unlisted shares	66,842	213,170	103,099
	345,542	475,292	422,229
Foreign investments
Unlisted shares	221,289	187,241	236,719
	$ 566,831	$ 662,533	$ 658,948

13 -

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.

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 third 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 $111,322 thousand and $117,447 thousand and its related unrealized gain of $87,404 thousand and $104,518 thousand was transferred from other equity to retained earnings.

9. FINANCIAL ASSETS AT AMORTIZED COST

	September	September	30,	December	December	31,	September	September	30,
		2023			2022			2022
Current
Domestic investments
Pledge deposits (a)	$ 104,103			$	70,259		$	67,034
Time deposits with original maturity of more
than three months (b)			-		281,718			286,919
	$ 104,103			$	351,977		$	353,953
Non-current
Domestic investment
Time deposits with original maturities of more
than one year (b)	$ 137,240			$		-	$		-

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 3.25%-4.94%, 1.68%-4.125% and 1.68%-4.125% per annum as of September 30, 2023, December 31, 2022 and September 30, 2022, respectively.

10. NOTES RECEIVABLE, TRADE RECEIVABLES AND OTHER RECEIVABLES

		September	September	30,	December	December	31,	September 30,	September 30,
			2023			2022			2022
Notes receivable
Notes receivable	- operating	$	74,924		$	32,131		$	30,823
Less: Allowance	for impairment loss			(6)			(6)		(6)
		$	74,918		$	32,125		$	30,817
									(Continued)

14 -

	September 30,	December 31,	September 30,
	2023	2022	2022
Trade receivables
At amortized cost
Gross carrying amount	$ 3,364,618	$ 3,538,129	$ 3,947,131
Less: Allowance for impairment loss	(13,563)	(13,497)	(13,545)
	$ 3,351,055	$ 3,524,632	$ 3,933,586
			(Concluded)

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:

September 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	Not Past Due 0.40% $ 3,305,547 (13,244) $ 3,292,303 Not Past Due 0.30% $ 3,332,503 (10,032) $ 3,322,471	1 to 60 Days 61 to 120 Days 121 to 180 Days Over 180 Days 0.10%-0.87% 13.22%-19.83% 100% 100% $ 133,125 $ 870 $ - $ - (205) (120) - - $ 132,920 $ 750 $ - $ - 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 $ - $ -	Total $ 3,439,542 (13,569) $ 3,425,973 Total $ 3,570,260 (13,503) $ 3,556,757

15 -

September 30, 2022

Expected credit loss rate Gross carrying amount Loss allowance (Lifetime ECL) Amortized cost	Not Past Due 0.35% $ 3,728,386 (13,191) $ 3,715,195	1 to 60 Days 61 to 120 Days 121 to 180 Days Over 180 Days 0.04%-0.45% 7.51%-15.03% 100% 100% $ 246,861 $ 2,707 $ - $ - (157) (203) - - $ 246,704 $ 2,504 $ - $ -	Total - $ 3,977,954 (13,551) $ 3,964,403

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

Balance at January 1 Less: Impairment losses reversed Foreign exchange gains and losses Balance at September 30		September	30
		2023 $ 13,503 - 66 $ 13,569	2022 $ 13,494 (40) 97 $ 13,551

11. FINANCE LEASE RECEIVABLES

	September 30,	September 30,	December	December	31,	September	September	30,
		2023		2022			2022
Undiscounted lease payments
Year 1		$ 4,468		$	-		$	-
Year 2		4,697			-			-
Year 3		2,411			-			-
Year 4		-			-			-
Year 5		-			-			-
Year 6 onwards		-			-			-
		11,576			-			-
Less: Unearned financing income		(586)			-			-
Net investment in leases presented as finance
lease receivable		$ 10,990		$	-		$	-
INVENTORIES
	September 30,		December		31,	September		30,
		2023		2022			2022
Finished goods	$	375,236	$	620,212		$	487,583
Work in process		477,525		446,386			486,165
Raw materials		627,185		769,022			893,680
Supplies and spare parts		137,834		137,716			128,100
Merchandise		522,318		475,972			608,107
Buildings and land held for sale		241,902		250,413			448,492
	$	2,382,000	$	2,699,721		$	3,052,127

12. INVENTORIES

16 -

The cost of crystal inventories recognized as cost of goods sold for the three and the nine months ended September 30, 2023 and 2022 included $1,988,648 thousand, $2,111,369 thousand, $5,084,687 thousand and $6,246,185 thousand, respectively. The cost of goods sold for the three and the nine months ended September 30, 2023 and 2022 included inventory write-downs of $4,737 thousand, $2,975 thousand, $11,340 thousand and $12,826 thousand, respectively.

The cost of real estate inventories recognized as cost of goods sold for the three and the nine months ended September 30, 2023 and 2022 included $10,501 thousand, $16,050 thousand, $13,032 thousand and $30,813 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 Area Jing Yuan	September 30, 2023
	Buildings and Land Held for Sale Contract Liabilities - Current $ 241,902 $ 2,263 December 31, 2022
	Buildings and Land Held for Sale Contract Liabilities - Current $ 250,413 $ 40 September 30, 2022
	Buildings and Land Held for Sale Contract Liabilities - Current $ 448,492 $ 41

13. 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 (TCTI) Investment management TXC Technology, Inc. Marketing activities TXC Japan Corporation Marketing activities Taiwan Crystal Technology (HK) Limited International trading TXC Europe GmbH Marketing activities	Proportion of Ownership September 30, 2023 December 31, 2022 September 30, 2022 Remark 100 100 100 a 100 100 100 b 100 100 100 c 100 100 100 e 100 100 100 j (Continued)

17 -

Investor
Investee
Nature of 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
September 30,
2023
December 31,
2022
September 30,
2022
Remark
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

(Concluded)

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.
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, 2021 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 nine months ended September 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.
18 -

14. NON-CURRENT ASSETS CLASSIFIED AS HELD FOR SALE

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

15. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

September 30, 2023 December 31, 2022 September 30, 2022 Investments in associates and joint venture $ 449,055 $ 458,607 $ 459,444 a. Investment in associates September 30, 2023 December 31, 2022 September 30, 2022 Associates that are not individually material $ 394,283 $ 401,707 $ 399,518 For the Three Months Ended September 30 For the Nine Months Ended September 30 2023 2022 2023 2022 The Group’s share of: Profit from continuing operations $ 5,483 $ 6,537 $ 15,341 $ 20,373 Other comprehensive income (loss) (15,262) 829 (22,765) 5,535 Total comprehensive income for the period $ (9,779) $ 7,366 $ (7,424) $ 25,908	September 30, 2023 December 31, 2022 September 30, 2022 Investments in associates and joint venture $ 449,055 $ 458,607 $ 459,444 a. Investment in associates September 30, 2023 December 31, 2022 September 30, 2022 Associates that are not individually material $ 394,283 $ 401,707 $ 399,518 For the Three Months Ended September 30 For the Nine Months Ended September 30 2023 2022 2023 2022 The Group’s share of: Profit from continuing operations $ 5,483 $ 6,537 $ 15,341 $ 20,373 Other comprehensive income (loss) (15,262) 829 (22,765) 5,535 Total comprehensive income for the period $ (9,779) $ 7,366 $ (7,424) $ 25,908	September 30, 2023 December 31, 2022 September 30, 2022 Investments in associates and joint venture $ 449,055 $ 458,607 $ 459,444 a. Investment in associates September 30, 2023 December 31, 2022 September 30, 2022 Associates that are not individually material $ 394,283 $ 401,707 $ 399,518 For the Three Months Ended September 30 For the Nine Months Ended September 30 2023 2022 2023 2022 The Group’s share of: Profit from continuing operations $ 5,483 $ 6,537 $ 15,341 $ 20,373 Other comprehensive income (loss) (15,262) 829 (22,765) 5,535 Total comprehensive income for the period $ (9,779) $ 7,366 $ (7,424) $ 25,908	September 30, 2023 December 31, 2022 September 30, 2022 Investments in associates and joint venture $ 449,055 $ 458,607 $ 459,444 a. Investment in associates September 30, 2023 December 31, 2022 September 30, 2022 Associates that are not individually material $ 394,283 $ 401,707 $ 399,518 For the Three Months Ended September 30 For the Nine Months Ended September 30 2023 2022 2023 2022 The Group’s share of: Profit from continuing operations $ 5,483 $ 6,537 $ 15,341 $ 20,373 Other comprehensive income (loss) (15,262) 829 (22,765) 5,535 Total comprehensive income for the period $ (9,779) $ 7,366 $ (7,424) $ 25,908	September 30, 2023 December 31, 2022 September 30, 2022 Investments in associates and joint venture $ 449,055 $ 458,607 $ 459,444 a. Investment in associates September 30, 2023 December 31, 2022 September 30, 2022 Associates that are not individually material $ 394,283 $ 401,707 $ 399,518 For the Three Months Ended September 30 For the Nine Months Ended September 30 2023 2022 2023 2022 The Group’s share of: Profit from continuing operations $ 5,483 $ 6,537 $ 15,341 $ 20,373 Other comprehensive income (loss) (15,262) 829 (22,765) 5,535 Total comprehensive income for the period $ (9,779) $ 7,366 $ (7,424) $ 25,908
			2023 $ 15,341 (22,765) $ (7,424)	2022 $ 20,373 5,535 $ 25,908

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.

19 -

b. Investment joint venture

September 30, 2023 December 31, 2022 September 30, 2022 Joint ventures that are not individually material $ 54,772 $ 56,900 $ 59,926 For the Three Months Ended September 30 For the Nine Months Ended September 30 2023 2022 2023 2022 The Group’s share of: Profit from continuing operations $ (4,384) $ (2,347) $ (11,399) $ (5,542) Total comprehensive income for the period $ (4,384) $ (2,347) $ (11,399) $ (5,542)	September 30, 2023 December 31, 2022 September 30, 2022 Joint ventures that are not individually material $ 54,772 $ 56,900 $ 59,926 For the Three Months Ended September 30 For the Nine Months Ended September 30 2023 2022 2023 2022 The Group’s share of: Profit from continuing operations $ (4,384) $ (2,347) $ (11,399) $ (5,542) Total comprehensive income for the period $ (4,384) $ (2,347) $ (11,399) $ (5,542)	September 30, 2023 December 31, 2022 September 30, 2022 Joint ventures that are not individually material $ 54,772 $ 56,900 $ 59,926 For the Three Months Ended September 30 For the Nine Months Ended September 30 2023 2022 2023 2022 The Group’s share of: Profit from continuing operations $ (4,384) $ (2,347) $ (11,399) $ (5,542) Total comprehensive income for the period $ (4,384) $ (2,347) $ (11,399) $ (5,542)	September 30, 2023 December 31, 2022 September 30, 2022 Joint ventures that are not individually material $ 54,772 $ 56,900 $ 59,926 For the Three Months Ended September 30 For the Nine Months Ended September 30 2023 2022 2023 2022 The Group’s share of: Profit from continuing operations $ (4,384) $ (2,347) $ (11,399) $ (5,542) Total comprehensive income for the period $ (4,384) $ (2,347) $ (11,399) $ (5,542)	September 30, 2023 December 31, 2022 September 30, 2022 Joint ventures that are not individually material $ 54,772 $ 56,900 $ 59,926 For the Three Months Ended September 30 For the Nine Months Ended September 30 2023 2022 2023 2022 The Group’s share of: Profit from continuing operations $ (4,384) $ (2,347) $ (11,399) $ (5,542) Total comprehensive income for the period $ (4,384) $ (2,347) $ (11,399) $ (5,542)
			2023 $ (11,399) $ (11,399)	2022 $ (5,542) $ (5,542)

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.

16. 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 September 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 September 30, 2022 Carrying value at September 30, 2022	Freehold Land $ 621,855 - - - - - $ 621,855 $ - - - - - - $ - $ 621,855	Land Improvements $ 2,279 745 - - - - $ 3,024 $ 1,209 - 282 - - - $ 1,491 $ 1,533	Buildings Machinery and Equipment Transportation Equipment $ 2,728,943 $ 9,699,052 $ 21,149 45,220 803,702 - (1,076 ) (45,885 ) (1,118 ) 5,940 - - - 303,505 - 32,820 164,497 544 $ 2,811,847 $ 10,924,871 $ 20,575 $ 1,211,106 $ 6,157,842 $ 15,109 (1,076 ) (44,125 ) (598 ) 114,589 742,715 1,901 - 1,789 - 3,674 - - 15,228 95,214 397 $ 1,343,521 $ 6,953,435 $ 16,809 $ 1,468,326 $ 3,971,436 $ 3,766	Office Equipment Property under Construction Total $ 387,266 $ 13,137 $ 13,473,681 82,514 37,542 969,723 (10,756 ) - (58,835 ) - - 5,940 - - 303,505 8,306 642 206,809 $ 467,330 $ 51,321 $ 14,900,823 $ 244,587 $ - $ 7,629,853 (10,673 ) - (56,472 ) 33,931 - 893,418 - - 1,789 - - 3,674 5,220 - 116,059 $ 273,065 $ - $ 8,588,321 $ 194,265 $ 51,321 $ 6,312,502 (Continued)

20 -

Cost Balance at January 1, 2023 Additions Disposals Reclassified as intangible assets Reclassified Effect of foreign currency exchange differences Balance at September 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 September 30, 2023 Carrying value at December 31, 2022 and January 1, 2023 Carrying value at September 30, 2023	Freehold Land $ 621,855 - - - - - $ 621,855 $ - - - - - - $ - $ 621,855 $ 621,855	Land Improvements $ 3,024 - - - - - $ 3,024 $ 1,581 - 238 - - - $ 1,819 $ 1,443 $ 1,205	Buildings Machinery and Equipment Transportation Equipment $ 2,781,991 $ 11,127,318 $ 24,354 42,488 174,410 - (920 ) (83,173 ) (11 ) - - - 88,192 (4,070 ) - 25,261 155,681 440 $ 2,937,012 $ 11,370,166 $ 24,783 $ 1,353,707 $ 7,111,880 $ 17,137 (920 ) (78,657 ) (11 ) 101,617 738,059 2,135 - 4,170 - - (80 ) - 13,058 84,341 352 $ 1,467,462 $ 7,859,713 $ 19,613 $ 1,428,284 $ 4,015,438 $ 7,217 $ 1,469,550 $ 3,510,453 $ 5,170	Office Equipment Property under Construction Total $ 427,331 $ 97,580 $ 15,083,453 27,733 234,590 479,221 (3,526 ) - (87,630 ) - (1,843 ) (1,843 ) 1,060 (88,382 ) (3,200 ) (22,146) 5,336 164,572 $ 430,452 $ 247,281 $ 15,634,573 $ 279,406 $ - $ 8,763,711 (3,466 ) - (83,054 ) 35,626 - 877,675 - - 4,170 80 - - 4,199 - 101,950 $ 315,845 $ - $ 9,664,452 $ 147,925 $ 97,580 $ 6,319,742 $ 114,607 $ 247,281 $ 5,970,121 (Concluded)

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.

17. LEASE ARRANGEMENTS

a. Right-of-use assets

	September 30,	December 31,	September 30,
	2023	2022	2022
Carrying amounts
Land use right	$ 199,858	$ 199,547	$ 203,517
Buildings	22,384	5,727	4,581
Transportation equipment	2,799	710	823
	$ 225,041	$ 205,984	$ 208,921

21 -

Additions to right-of-use assets Depreciation charge for right-of-use assets Land use right Buildings Transportation equipment Income from the subleasing of right-of-use assets (presented in other income)	For the Three Months Ended September 30	For the Three Months Ended September 30	For the Three Months Ended September 30			For the Nine Months Ended September 30	For the Nine Months Ended September 30	For the Nine Months Ended September 30
						2023 2022 $ 32,410 $ - For the Nine Months Ended September 30
		2023 $ 1,143 654 155 $ 1,952 $ (761)	2022 $ 1,165 654 112 $ 1,931 $ -				2023 $ 3,457 1,963 379 $ 5,799 $ (761)	2022 $ 3,496 1,963 337 $ 5,796 $ -

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

b. Lease liabilities

	September 30,	September 30,	December 31,	December 31,	September 30,	September 30,
		2023		2022		2022
Carrying amounts
Current	$	6,109	$	3,088	$	3,079
Non-current		27,991		3,399		2,372
	$	34,100	$	6,487	$	5,451
Range of discount rate for lease liabilities was as follows:
	September 30,		December 31,		September 30,
		2023		2022		2022
Buildings	1.27%-3.85%		0.86%-1.27%		0.86%-1.27%
Transportation equipment		3.00%		0.86%		0.86%

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.

22 -

d. Other lease information

Expenses relating to short-term leases Total cash outflow for leases	For the Three Months Ended September 30 2023 2022 $ 65 $ 41 $ (4,004) $ (805)	For the Three Months Ended September 30 2023 2022 $ 65 $ 41 $ (4,004) $ (805)	For the Nine Months Ended September 30	For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2023 $ 65 $ (4,004)		2023 $ 176 $ (5,655)	2022 $ 150 $ (2,435)

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.

18. INVESTMENT PROPERTIES

	Completed
	Investment
	Properties
Cost
Balance at January 1, 2022	$ 544,232
Disposals	(300)
Transfer to property, plant and equipment	(5,940)
Effect of foreign currency exchange differences	14,450
Balance at September 30, 2022	$ 552,442
Accumulated depreciation and impairment
Balance at January 1, 2022	$ (49,864)
Depreciation expenses	(14,552)
Disposals	300
Transfer to property, plant and equipment	3,674
Effect of foreign currency exchange differences	(1,222)
Balance at September 30, 2022	$ (61,664)
Carrying amounts at September 30, 2022	$ 490,778
Cost
Balance at January 1, 2023	$ 637,330
Effect of foreign currency exchange differences	11,749
Balance at September 30, 2023	$ 649,079 (Continued)

23 -

	Completed
	Investment
	Properties
Accumulated depreciation and impairment
Balance at January 1, 2023	$ (65,984)
Depreciation expenses	(16,526)
Effect of foreign currency exchange differences	(1,451)
Balance at September 30, 2023	$ (83,961)
Carrying amounts at September 30, 2023	$ 565,118 (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 September 30, 2023, December 31, 2022 and September 30, 2022 was $1,108,751 thousand, $1,085,198 thousand and $1,125,644 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.

19. BORROWINGS

a. Short-term borrowings

	September 30,	September 30,	December 31,	December 31,	September 30,	September 30,
		2023		2022		2022
Secured borrowings (Note 33)
Bank loans	$	-	$	43,651	$	44,263
Unsecured borrowings
Bank loans		197,300		359,869		332,312
Letters of credit		52,943		110,230		111,775
		250,243		470,099		444,087
Short-term borrowings	$	250,243	$	513,750	$	488,350

The interest rate on the bank loans and letters of credit were 2.83%-3.5%, 1.2%-3.65% and 1.2%-3.85% per annum as of September 30, 2023, December 31, 2022 and September 30, 2022, respectively.

24 -

b. Short-term bills payable

September 30,
2023
December 31,
2022
September 30,
2022
Bank acceptances
$ -
$ -
$ 89,420
Outstanding short-term bills payable were as follows:
September 30, 2022
Promissory Institution
Nominal
Amount
Discount
Amount
Carrying
Amount
Interest Rate
Collateral
Carrying
Amount of
Collateral
Bank acceptances
Bank of Ningbo
RMB 20,000
$ -
$ 89,420
3.6%
-
$ -
Long-term borrowings
September 30,
2023
December 31,
2022
September 30,
2022

Secured borrowings (Note 33)

Bank loans
$ 192,555
$ 39,180
$ -
Less: Current portions

(22,472)

-

-

170,083

39,180

-
Unsecured borrowings
Bank loans
2,608,433
2,374,205
2,500,233
Less: Current portions

(790,479)

(890,785)

(757,041)

1,817,954

1,483,420

1,743,192
Long-term borrowings
$ 1,988,037
$ 1,522,600
$ 1,743,192
The borrowings of the Group were as follows:
Detail of Borrowing
September 30,
2023
December 31,
2022
September 30,
2022
Unsecured bank borrowing
denominated in NT$ Maturity date: 2025.01.03
Principle is paid monthly since March 15, 2021
$ 32,609
$ 52,174
58,696
Unsecured bank borrowing
denominated in NT$ Maturity date: 2025.01.03
Principle is paid monthly since January 15, 2021
46,875
75,000
84,375
Unsecured bank borrowing
denominated in NT$ Maturity date: 2025.01.03
Principle is paid monthly since January 15, 2021
31,250
50,000
56,250
Unsecured bank borrowing
denominated in NT$ Maturity date: 2025.01.03
Principle is paid monthly since January 15, 2021
46,875
75,000
84,375
Unsecured bank borrowing
denominated in NT$ Maturity date: 2026.08.17
Principle is paid monthly since September 15, 2022
145,833
183,333
200,000
Unsecured bank borrowing
denominated in NT$ Maturity date: 2024.09.15
Principle is paid monthly since September 15, 2022
144,000
252,000
288,000
Unsecured bank borrowing
denominated in NT$ Maturity date: 2024.09.15
Principle is paid monthly since September 15, 2022
48,000
84,000
96,000
Unsecured bank borrowing
denominated in NT$ Maturity date: 2024.09.15
Principle is paid monthly since September 15, 2022
96,000
168,000
192,000
Unsecured bank borrowing
denominated in NT$ Maturity date: 2025.04.01
Principle is paid monthly since March 15, 2023
216,000
300,000
300,000
Unsecured bank borrowing
denominated in NT$ Maturity date: 2025.04.15
Principle is paid monthly since May 15, 2023
158,333
200,000
200,000
Unsecured bank borrowing
denominated in NT$ Maturity date: 2025.07.04
Principle is repaid at maturity
100,000
-
-
(Continued)

25 -

Detail of Borrowing
September 30,
2023

Unsecured bank borrowing
denominated in NT$ Maturity date: 2025.07.04
Principle is repaid at maturity
$ 200,000

Unsecured bank borrowing
denominated in NT$ Maturity date: 2025.07.04
Principle is repaid at maturity
300,000
Unsecured bank borrowing
denominated in NT$ Maturity date: 2025.08.03
Principle is repaid at maturity
300,000
Unsecured bank borrowing
denominated in NT$ Maturity date: 2025.08.03
Principle is repaid at maturity
300,000
Unsecured bank borrowing
denominated in NT$ Maturity date: 2024.08.03
Principle is repaid at maturity
-
Unsecured bank borrowing
denominated in NT$ Maturity date: 2025.07.10
Principle is repaid at maturity
300,000
Unsecured bank borrowing
denominated in NT$ Maturity date: 2024.09.15
Principle is repaid at maturity
-
Secured bank borrowing
denominated in RMB
Maturity date: 2027.11.01
Principle is repaid semi-annually per agreement of RMB2,500
thousand, from April 19, 2024 to April 19, 2026; per agreement
of RMB5,000 thousand, from April 19, 2026 to the maturity date.
125,895
Secured bank borrowing
denominated in RMB
Maturity date: 2027.10.19
Principle is repaid semi-annually per agreement of RMB2,500
thousand, from April 19, 2024 to April 19, 2026; per agreement
of RMB5,000 thousand, from April 19, 2026 to the maturity date.
66,660
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.
40,000
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.
40,000
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.
23,936
Unsecured bank borrowing
denominated in US$ Maturity date: 2025.09.24
Principle is repaid at maturity
38,722
Less: Current portions

(812,951)

$ 1,988,037

December 31,
2022
September 30,
2022
$ -
$ -
-
-
100,000
300,000
300,000
300,000
300,000
-
-
-
-
100,000
39,180
-
-
-
43,210
44,263
43,210
44,263
43,651
44,263
43,210
44,263
-
-
61,417
63,485

(890,785)

(757,041)
$ 1,522,600
$ 1,743,192
(Concluded)

The range of interest rate on the bank loans was 0.85%-6.44%, 0.725%-5.49% and 0.60%-3.54% per annum as of September 30, 2023, December 31, 2022 and September 30, 2022, respectively.

20. BONDS PAYABLE

	September 30,	September 30,	December 31,	September 30,
		2023	2022	2022
Unsecured domestic convertible bonds	$	1,200,000	$ 1,200,000	$ 1,200,000
Less: Discount on bonds payable		(8,773)	(16,727)	(19,396)
		1,191,227	1,183,273	1,180,604
Less: Corporate bonds due within one year or one
operating cycle		(1,191,227)	-	-
Unsecured domestic convertible bonds	$	-	$ 1,183,273	$ 1,180,604

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.

26 -

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 September 30, 2022

Liability component at December 31, 2022

Interest charged at an effective interest rate

Liability component at September 30, 2023
Less: Corporate bonds due within one year or one operating cycle

Unsecured domestic convertible bonds

$ 1,194,573
(28,431)

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

7,883
$ 1,180,604
$ 1,183,273

7,954
1,191,227
(1,191,227)
$ -

21. OTHER LIABILITIES

	September 30,	September 30,	December 31,	December 31,	September 30,	September 30,
		2023		2022		2022
Current
Other payables
Payables for bonuses to employees and
directors	$	244,936	$	393,658	$	338,866
Payables for commissions		19,940		25,232		27,598
Payables for salaries		144,455		147,661		153,063
Payables for bonuses		317,042		506,933		390,175
Payables for annual leave		44,446		47,364		43,394
Payables for purchases of equipment		39,144		138,135		86,820
Others		145,606		162,996		183,544
	$	955,569	$	1,421,979	$	1,223,460
Deferred revenue
Arising from government grants (Note 28)	$	40,901	$	38,817	$	23,827
Non-current
Deferred revenue
Arising from government grants (Note 28)	$	92,257	$	108,191	$	66,010

27 -

22. 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 nine months ended September 30, 2023 and 2022 were $342 thousand, $420 thousand, $1,028 thousand and $1,262 thousand, respectively. Employee benefit expense was calculated on the basis of the actuarial valuations in December 31, 2022 and 2021.

23. EQUITY

a. Share capital

Ordinary shares

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

b. Capital surplus

	September 30,	September 30,	December 31,	December 31,	September 30,	September 30,
		2023		2022		2022
May be used to offset a deficit, distributed as
cash dividends, or transferred to share
capital*
Issuance of ordinary shares	$	611,776	$	611,776	$	611,776
Conversion of bonds		977,028		977,028		977,028
						(Continued)

28 -

	September 30,	September 30,	December 31,	December 31,	September 30,	September 30,
		2023		2022		2022
Overdue options	$	73,377	$	73,377	$	73,377
The difference between consideration
received or paid and the carrying amount of
the subsidiaries’ net assets during actual
disposal or acquisition		331		331		331
May only be used to offset a deficit
Share of changes in capital surplus of
associates or joint venture		23,981		15,627		15,627
Other		3,571		3,409		3,412
May not be used for any purpose
Employee share options		28,431		28,431		28,431
	$	1,718,495	$	1,709,979	$	1,709,982
						(Concluded)

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 25(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.

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.

29 -

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 2022 $ 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 2022 $ - $ - - - 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 September 30 Unrealized gain (loss) on financial assets at FVTOCI Balance at January 1 Recognized during the period Unrealized 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 September 30			For the Nine Months Ended September 30	For the Nine Months Ended September 30
			2023 2022 $ (450,523) $ (559,579) 148,306 208,271 (2,513) 5,543 $ (304,730) $ (345,765) For the Nine Months Ended September 30
		2023 $ 307,453 (28,429) (72) (28,501) (87,404) $ 191,548		2022 $ 1,357,362 (965,836) (32) (965,868) (104,518) $ 286,976

2) Unrealized gain (loss) on financial assets at FVTOCI
30 -

24. REVENUE

	For the Three	For the Three	Months Ended	Months Ended	For the Nine	For the Nine	Months Ended	Months Ended
		September		30		September		30
		2023		2022		2023		2022
Revenue from contracts with
customers
Revenue from sale of goods	$	3,072,372	$	3,429,924	$	7,790,398	$	10,136,056
Construction contract revenue		13,543		1,802		19,590		26,250
	$	3,085,915	$	3,431,726	$	7,809,988	$	10,162,306
Contract Balances
	September 30,		December 31,		September 30,		January 1,
		2023		2022		2022		2022
Trade receivables (Note 10)	$	3,351,055	$	3,524,632	$	3,933,586	$	4,035,315
Contract liabilities
Construction of properties	$	2,263	$	40	$	41	$	10,814
Sale of goods		18,872		12,116		9,862		15,654
Contract liabilities - current	$	21,135	$	12,156	$	9,903	$	26,468

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

25. 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 September 30 2023 2022 $ 11,968 $ 3,240 2,411 1,864 3,742 1,388 $ 18,121 $ 6,492	For the Three Months Ended September 30 2023 2022 $ 11,968 $ 3,240 2,411 1,864 3,742 1,388 $ 18,121 $ 6,492	For the Nine Months Ended September 30	For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2023 $ 11,968 2,411 3,742 $ 18,121		2023 $ 40,535 6,582 8,814 $ 55,931	2022 $ 7,285 7,035 2,898 $ 17,218

31 -

b. Other income

For the Three Months Ended September 30 2023 2022 $ 34,675 $ 29,368 12,442 9,986 9,299 16,474 $ 56,416 $ 55,828 For the Three Months Ended September 30 2023 2022 $ 820 $ 6,732 - - 1,331 2,074 127,539 281,854 86 159 (6,237) (4,847) 8 - (12,112) (13,026) $ 111,435 $ 272,946 For the Three Months Ended September 30 2023 2022 $ 13,178 $ 9,368 2,687 2,662 182 18 $ 16,047 $ 12,048	For the Nine Months Ended September 30	For the Nine Months Ended September 30
	2023 2022 $ 82,698 $ 70,640 12,442 11,486 26,034 35,820 $ 121,174 $ 117,946 For the Nine Months Ended September 30
	2023 2022 $ 739 $ 5,971 - (249) 12,733 (2,351) 204,105 620,946 (4,170) (1,789) (16,526) (14,552) 8 - (16,836) (21,160) $ 180,053 $ 586,816 For the Nine Months Ended September 30
2023 $ 13,178 2,687 182 $ 16,047	2023 $ 35,141 7,954 205 $ 43,300	2022 $ 27,104 7,883 59 $ 35,046

32 -

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 expenses An analysis of amortization by function Operating costs Operating expenses	For the Three Months Ended September 30 2023 2022 $ 281,794 $ 306,931 6,237 4,847 1,952 1,931 5,520 5,934 $ 295,503 $ 319,643 $ 212,664 $ 239,914 71,082 68,948 6,237 4,847 $ 289,983 $ 313,709 $ 35 $ 36 5,485 5,898 $ 5,520 $ 5,934	For the Three Months Ended September 30 2023 2022 $ 281,794 $ 306,931 6,237 4,847 1,952 1,931 5,520 5,934 $ 295,503 $ 319,643 $ 212,664 $ 239,914 71,082 68,948 6,237 4,847 $ 289,983 $ 313,709 $ 35 $ 36 5,485 5,898 $ 5,520 $ 5,934		For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2023 $ 281,794 6,237 1,952 5,520 $ 295,503 $ 212,664 71,082 6,237 $ 289,983 $ 35 5,485 $ 5,520		2023 $ 877,675 16,526 5,799 13,246 $ 913,246 $ 664,761 218,713 16,526 $ 900,000 $ 105 13,141 $ 13,246	2022 $ 893,418 14,552 5,796 16,485 $ 930,251 $ 709,486 189,728 14,552 $ 913,766 $ 85 16,400 $ 16,485

f. Employee benefits expense

Post-employment benefits (Note 22) 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 September 30 2023 2022 $ 27,873 $ 30,491 342 420 28,215 30,911 605,662 658,572 34,899 36,278 24,091 15,655 664,652 710,505 $ 692,867 $ 741,416 $ 390,030 $ 419,016 302,837 322,400 $ 692,867 $ 741,416		For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2023 $ 27,873 342 28,215 605,662 34,899 24,091 664,652 $ 692,867 $ 390,030 302,837 $ 692,867		2023 $ 84,153 1,028 85,181 1,655,986 104,802 69,487 1,830,275 $ 1,915,456 $ 1,108,419 807,037 $ 1,915,456	2022 $ 86,860 1,262 88,122 1,971,768 105,585 44,524 2,121,877 $ 2,209,999 $ 1,254,735 955,264 $ 2,209,999

33 -
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 nine months ended September 30, 2023 and 2022, respectively, were as follows:

Accrual rate

Employees’ compensation Remuneration of directors Amount	For the Three Months Ended September 30 2023 2022 9.0% 9.0% 1.5% 1.5%	For the Nine Months Ended September 30
		2023 2022 9.0% 9.0% 1.5% 1.5%

Employees’ compensation Remuneration to directors	For the Three Months Ended September 30 2023 2022 $ 68,233 $ 100,853 $ 11,372 $ 16,809	For the Three Months Ended September 30 2023 2022 $ 68,233 $ 100,853 $ 11,372 $ 16,809		For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2023 $ 68,233 $ 11,372		2023 $ 149,731 $ 24,955	2022 $ 277,379 $ 46,230

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 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.

34 -

26. 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 September 30 2023 2022 $ 99,052 $ 236,844 (1,508) (3,132) 7 (1,995) 25,341 (36,935) $ 122,892 $ 194,782	For the Three Months Ended September 30 2023 2022 $ 99,052 $ 236,844 (1,508) (3,132) 7 (1,995) 25,341 (36,935) $ 122,892 $ 194,782		For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2023 $ 99,052 (1,508) 7 25,341 $ 122,892		2023 $ 263,925 6,839 (10,251) 2,374 $ 262,887	2022 $ 517,058 25,685 (30,498) 14,612 $ 526,857

b. Income tax assessments

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

27. 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 September 30 2023 2022 $ 598,260 $ 852,460 2,149 2,130 $ 600,409 $ 854,590		For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2023 $ 598,260 2,149 $ 600,409		2023 $ 1,305,683 6,363 $ 1,312,046	2022 $ 2,362,902 6,307 $ 2,369,209

35 -

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 September 30 2023 2022 309,757 309,757 10,563 9,764 1,547 3,858 321,867 323,379	For the Three Months Ended September 30 2023 2022 309,757 309,757 10,563 9,764 1,547 3,858 321,867 323,379	For the Nine Months Ended September 30	For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2023 309,757 10,563 1,547 321,867		2023 309,757 10,563 2,427 322,747	2022 309,757 9,764 4,728 324,249

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.

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.

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.

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

September 30, 2023 Financial assets at FVTPL Domestic listed shares 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 December 31, 2022 Financial assets at FVTPL Redemption options on convertible bonds Foreign exchange forward contracts and exchange contracts Beneficiary certificate Structured deposits	Level 1 $ 28,765 - 297 - $ 29,062 $ 181,056 97,644 - - $ 278,700 $ - Level 1 $ 20,350 - 287 - $ 20,637	Level 2 $ - 2,261 - 594,174 $ 596,435 $ - - - - $ - $ 2,244 Level 2 $ - 3,662 - 393,151 $ 396,813	Level 3 $ - - - - $ - $ - - 66,842 221,289 $ 288,131 $ - Level 3 $ - - - - $ -	Total $ 28,765 2,261 297 594,174 $ 625,497 $ 181,056 97,644 66,842 221,289 $ 566,831 $ 2,244 Total $ 20,350 3,662 287 393,151 $ 417,450 (Continued)

37 -

Financial liabilities at FVTPL Foreign exchange forward contracts and exchange contracts Financial assets at FVTOCI Investments in equity instruments Domestic emerging shares Domestic unlisted shares Foreign unlisted shares September 30, 2022 Financial assets at FVTPL Domestic listed shares Foreign exchange forward contracts and exchange contracts Beneficiary certificate Structured deposits Financial assets at FVTOCI Investments in equity instruments Domestic emerging shares Domestic unlisted shares Foreign unlisted shares Financial liabilities at FVTPL Foreign exchange forward contracts and exchange contracts	Level 1 $ - $ 262,122 - - $ 262,122 Level 1 $ 17,875 - 7,153 - $ 25,028 $ 319,130 - - $ 319,130 $ -	Level 2 $ 13,620 $ - - - $ - Level 2 $ - 1,172 - 387,224 $ 388,396 $ - - - $ - $ 10,048	Level 3 $ - $ - 213,170 187,241 $ 400,411 Level 3 $ - - - - $ - $ - 103,099 236,719 $ 339,818 $ -	Total $ 13,620 $ 262,122 213,170 187,241 $ 662,533 (Concluded) Total $ 17,875 1,172 7,153 387,224 $ 413,424 $ 319,130 103,099 236,719 $ 658,948 $ 10,048

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

38 -
2) Reconciliation of Level 3 fair value measurements of financial instruments

September 30, 2023

Financial Assets Balance at January 1, 2023 Purchases Transfer to Level 1 Recognized in other comprehensive income (included in unrealized valuation gain (loss) on financial assets at FVTOCI) Effect of foreign currency exchange differences Balance at September 30, 2023	Financial Assets at FVTPL Equity Instruments $ - - - - - $ -	Financial Assets at FVTOCI
		Equity Instruments $ 400,411 40,435 (190,880) 34,551 3,614 $ 288,131

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.

September 30, 2022

Financial Assets Balance at January 1, 2022 Purchases Recognized in other comprehensive income (included in unrealized valuation gain (loss) on financial assets at FVTOCI) Effect of foreign currency exchange differences Balance at September 30, 2022	Financial Assets at FVTPL Equity Instruments $ - - - - $ -	Financial Assets at FVTOCI
		Equity Instruments $ 310,824 25,360 (3,145) 6,779 $ 339,818

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

Financial Instruments Valuation Techniques and Inputs

Derivatives - foreign exchange Discounted cash flow. forward contracts and exchange contracts 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.

Structured deposits 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.

(Continued)

39 -

Financial Instruments Redemption options on convertible bonds	Valuation Techniques and Inputs
	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. (Concluded)

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

	September 30,	September 30,	December 31,	December 31,	September 30,	September 30,
		2023		2022		2022
Financial assets
FVTPL
Mandatorily at FVTPL (1)	$	625,497	$	417,450	$	413,424
Financial assets at amortized cost (2)		7,349,970		8,223,316		7,985,622
Financial assets at FVTOCI
Equity instruments		566,831		662,533		658,948
Financial liabilities
FVTPL
Mandatorily at FVTPL (3)		2,244		13,620		10,048
Amortized cost (4)		6,487,874		6,814,283		7,441,614

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.
40 -
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).

Sensitivity analysis

The Group is mainly exposed to the USD and JPY.

41 -

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 Nine Months Ended September 30 2023 2022 $ 33,860 $ 39,819	JPY Impact
		For the Nine Months Ended September 30
		2023 2022 $ (1,838) $ (3,765)

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:

	September 30,	September 30,	December 31,	September 30,	September 30,
		2023	2022		2022
Fair value interest rate risk
Financial assets	$	361,419	$ 1,164,521	$	684,191
Financial liabilities		2,280,683	3,474,901		3,574,912
Cash flow interest rate risk
Financial assets		3,400,235	3,408,887		3,276,929
Financial liabilities		1,961,775	635,507		683,696

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.

42 -

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 nine months ended September 30, 2023 and 2022 would increase/(decrease) by $2,697 thousand and $4,862 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 liability. As of September 30, 2023, December 31, 2022 and September 30, 2022, the Group had available unutilized short-term and long-term bank loan facilities of $8,446,902 thousand, $6,774,251 thousand and $6,476,216 thousand, respectively.

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.

September 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	-	$	1,210,714 $		- $		- $		-	$ 1,210,714
Other payables	-		955,883		-		-		-	955,883
										(Continued)

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	Weighted
	Average
	Effective
	Interest Rate		Less than
	(%)		1 Year	2-3 Years	4-5 Years	5+ Years			Total
Lease liabilities	1.27%-3.85%	$	6,109 $	27,991 $	- $		-	$	34,100
Fixed interest rate
liabilities	1.1%-6.445%		1,978,335	244,622	57,726		-		2,280,683
Variable interest rate
liabilities	0.85%-1.55%		276,087	1,685,688	-		-		1,961,775
								(Concluded)
December 31, 2022
	Weighted
	Interest
	Average
	Effective 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	0.725%-
liabilities	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
September 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	-	$	1,870,396 $	- $	- $		-	$	1,870,396
Other payables	-		1,230,980	-	-		-		1,230,980
Lease liabilities	0.86-1.27		3,079	2,372	-		-		5,451
Fixed interest rate
liabilities	0.80-3.85		1,110,724	2,464,188	-		-		3,574,912
Variable interest rate
liabilities	0.60-0.73		224,087	409,608	50,000		-		683,695

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.

44 -

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.

September 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 $ 1,397 $ (1,380) $ - 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 September 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 $ (5,624) $ (2,136) $ (1,116)	1-5 Years $ - 1-5 Years $ - 1-5 Years $ -	5+ Years $ -
		5+ Years $ -
		5+ Years $ -

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

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b. Sales of goods

Related Party Line Items Categories Sales Associates Other associates Chairman of the Company	For the Three Months Ended September 30 2023 2022 $ 10,744 $ 13,558 1,479 3,512 4,503 - $ 16,726 $ 17,070	For the Three Months Ended September 30 2023 2022 $ 10,744 $ 13,558 1,479 3,512 4,503 - $ 16,726 $ 17,070	For the Nine Months Ended September 30	For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2023 $ 10,744 1,479 4,503 $ 16,726		2023 $ 25,871 4,926 5,148 $ 35,945	2022 $ 65,977 10,781 - $ 76,758

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

c. Purchases of goods

Related Party Categories Other associates	For the Three Months Ended September 30 2023 2022 $ 863 $ 106	For the Three Months Ended September 30 2023 2022 $ 863 $ 106		For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2023 $ 863		2023 $ 1,095	2022 $ 2,327

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 September 30 2023 2022 $ 102 $ 381	For the Three Months Ended September 30 2023 2022 $ 102 $ 381		For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2023 $ 102		2023 $ 359	2022 $ 1,607

e. Commission revenue

Related Party Categories Associates	For the Three Months Ended September 30 2023 2022 $ 370 $ 377	For the Three Months Ended September 30 2023 2022 $ 370 $ 377		For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2023 $ 370		2023 $ 1,118	2022 $ 1,131

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f. Rental revenue

Related Party Location Rent Collection Ningbo Xingmao Electron Technology 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 Months	E	nded September 30 2022 Amount % to Total Account Balance $ 1,140 - 44 - 880 - $ 2,064 -		For the Nine Months	End	ed September 30
		2023 Amount % to Total Account Balance $ 1,120 - 44 - 894 - $ 2,058 -				2023 Amount % to Total Account Balance $ 3,386 - 132 - 2,685 - $ 6,203 -		2022
								Amount % to Total Account Balance $ 3,424 - 133 - 2,644 - $ 6,201 -

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

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

	September 30,	December 31,	December 31,	September 30,
Related Party Categories	2023		2022	2022
Associates	$ 15,144	$	8,171	$ 22,602
Other associates	1,729		1,748	3,921
Less: Allowance for impairment loss	(68)		(68)	(68)
	$ 16,805	$	9,851	$ 26,455

The outstanding trade receivables from related parties are unsecured.

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

	September 30,	September 30,	December 31,	December 31,	September 30,	September 30,
Related Party Categories		2023		2022		2022
Other associates	$	966	$	622	$	112

The outstanding trade payables from related parties are unsecured.

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

i. Other receivables from related parties

	September 30,	September 30,	December 31,	December 31,	September 30,	September 30,
Related Party Categories		2023		2022		2022
Associates	$	1,398	$	635	$	1,007
Other associates		4		8		9
	$	1,402	$	643	$	1,016

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j. Other payables to related parties

Related Party Categories September 30, 2023 Other associates $ 314 Prepayments Related Party Categories September 30, 2023 Other associates $ 4,450 Acquisitions of property, plant and equipment For the Three Months Ended September 30 Related Party Categories 2023 2022 Others associates $ 111 $ 7,479 Lease arrangements - Group is lessee Related Party Categories Acquisitions of right-of-use assets Chairman of the Company Line Items Related Party Categories September 30, 2023 Lease liabilities Chairman of the Company - current PETER LIN $ 1,592 Lease liabilities Chairman of the Company - non-current PETER LIN $ 2,632 Related Party For the Three Months Ended September 30 Categories/Name 2023 2022 Interest expense Chairman of the Company $ 84 $ - Lease expense Chairman of the Company $ 1,648 $ -	Related Party Categories September 30, 2023 Other associates $ 314 Prepayments Related Party Categories September 30, 2023 Other associates $ 4,450 Acquisitions of property, plant and equipment For the Three Months Ended September 30 Related Party Categories 2023 2022 Others associates $ 111 $ 7,479 Lease arrangements - Group is lessee Related Party Categories Acquisitions of right-of-use assets Chairman of the Company Line Items Related Party Categories September 30, 2023 Lease liabilities Chairman of the Company - current PETER LIN $ 1,592 Lease liabilities Chairman of the Company - non-current PETER LIN $ 2,632 Related Party For the Three Months Ended September 30 Categories/Name 2023 2022 Interest expense Chairman of the Company $ 84 $ - Lease expense Chairman of the Company $ 1,648 $ -	December 31, 2022 September 30, 2022 $ 1,250 $ 7,520 December 31, 2022 September 30, 2022 $ 4,357 $ 3,588 For the Nine Months Ended September 30 2023 2022 $ 423 $ 15,681 For the Nine Months Ended September 30	December 31, 2022 September 30, 2022 $ 1,250 $ 7,520 December 31, 2022 September 30, 2022 $ 4,357 $ 3,588 For the Nine Months Ended September 30 2023 2022 $ 423 $ 15,681 For the Nine Months Ended September 30	December 31, 2022 September 30, 2022 $ 1,250 $ 7,520 December 31, 2022 September 30, 2022 $ 4,357 $ 3,588 For the Nine Months Ended September 30 2023 2022 $ 423 $ 15,681 For the Nine Months Ended September 30	December 31, 2022 September 30, 2022 $ 1,250 $ 7,520 December 31, 2022 September 30, 2022 $ 4,357 $ 3,588 For the Nine Months Ended September 30 2023 2022 $ 423 $ 15,681 For the Nine Months Ended September 30

			2023 2022 $ 423 $ 15,681 For the Nine Months Ended September 30
		2023 2022 $ 5,716 $ - December 31, 2022 September 30, 2022 $ - $ - $ - $ - For the Nine Months Ended September 30 2023 2022 $ 84 $ - $ 1,648 $ -

2023 $ 84 $ 1,648	2022 $ - $ -			2023 $ 84 $ 1,648	2022 $ - $ -

48 -

n. Compensation of key management personnel

Short-term employee benefits Post-employment benefits	For the Three Months Ended September 30 2023 2022 $ 38,936 $ 54,238 926 954 $ 39,862 $ 55,192	For the Three Months Ended September 30 2023 2022 $ 38,936 $ 54,238 926 954 $ 39,862 $ 55,192		For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2023 $ 38,936 926 $ 39,862		2023 $ 95,844 2,648 $ 98,492	2022 $ 156,362 2,872 $ 159,234

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

32. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

The following assets were provided as collateral for bank borrowings:

	September 30,	December 31,	September 30,
	2023	2022	2022
Building and equipment, net	$ 221,157	$ 247,376	$ 261,785
Investment property	12,170	13,147	13,740
Pledged deposits	104,103	70,259	67,034
Right-of-use assets	10,632	10,710	10,955
	$ 348,062	$ 341,492	$ 353,514

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 as of September 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 Paid Amount Unpaid Amount (Tax Included) (Tax Included) (Tax Included) Property, plant and equipment RMB 101,880 RMB 59,221 RMB 42,659

49 -

c. As of September 30, 2023, the Group unrecognized commitments were as follows:

			Contract
			Amount	Paid	Amount	Unpaid	Amount
			(Tax Excluded)	(Tax Excluded)		(Tax Excluded)
Acquisition	of machinery	and equipment	$ 258,626	$	140,492	$	118,134
Acquisition Acquisition	of machinery of machinery	and equipment and equipment	RMB 40,232 JPY 422,390	RMB JPY	19,040 172,570	RMB JPY	21,192 249,820
Acquisition	of machinery	and equipment	USD 890	USD	680	USD	210

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:

September 30, 2023

		Foreign		Carrying
	Currencies		Exchange Rate	Amount
Financial assets
Monetary items
USD	$	106,376	32.2680 (USD:NTD)	$ 3,432,541
USD		6,013	7.1798 (USD:RMB)	194,027
JPY		1,537,560	0.2161 (JPY:NTD)	332,267
JPY		353,735	0.0481 (JPY:RMB)	76,442
JPY		45,149	0.0067 (JPY:USD)	9,757
Financial liabilities
Monetary items
USD		5,316	32.2680 (USD:NTD)	171,537
USD		2,138	7.1798 (USD:RMB)	68,989
JPY		1,435,272	0.2161 (JPY:NTD)	310,162
JPY		1,301,175	0.0481 (JPY:RMB)	281,184
JPY		50,557	0.0067 (JPY:USD)	10,925

50 -

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
September 30, 2022
		Foreign		Carrying
	Currencies		Exchange Rate	Amount
Financial assets
Monetary items
USD	$	134,542	31.7430 (USD:NTD)	$ 4,270,767
USD		6,065	7.0998 (USD:RMB)	192,521
JPY		981,011	0.2199 (JPY:NTD)	215,724
JPY		571,701	0.0492 (JPY:RMB)	125,717
JPY		107,951	0.0069 (JPY:USD)	23,738
Financial liabilities
Monetary items
USD		7,241	31.7430 (USD:NTD)	229,851
USD		7,924	7.0998 (USD:RMB)	251,532
JPY		1,773,242	0.2199 (JPY:NTD)	389,936
JPY		1,373,420	0.0492 (JPY:RMB)	302,015
JPY		226,013	0.0069 (JPY:USD)	49,700

For the three and the nine months ended September 30, 2023 and 2022, realized and unrealized net foreign exchange gains (losses) were $127,539 thousand, $281,854 thousand, $204,105 thousand and $620,946 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.

51 -

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% 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)
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.
52 -
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.
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 Nine Months Ended September 30 2023 2022 $ 7,790,398 $ 10,136,056 19,590 26,250 $ 7,809,988 $ 10,162,306		Segment Profit	Segment Profit
				For the Nine Months Ended September 30
		2023 $ 7,790,398 19,590 $ 7,809,988		2023 $ 1,258,419 (7,649) 1,250,770 55,931 121,174 180,053 (43,300) 3,942 $ 1,568,570	2022 $ 2,191,498 (3,504) 2,187,994 17,218 117,946 586,816 (35,046) 14,831 $ 2,889,759

53 -

Segment revenue reported above represents revenue generated from external customers. There were no inter-segment sales for the nine months ended September 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.

54 -

TABLE 1

TXC CORPORATION AND SUBSIDIARIES

MARKETABLE SECURITIES HELD SEPTEMBER 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		September 30, 2023	September 30, 2023
				Shares	Carrying Amount	Percentage of Ownership	Fair Value
TXC Corporation TXC (Ningbo) Corporation TXC (Chongqing) Limited 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. Taiwan Semiconductor Manufacturing Company Limited Shares overseas-unlisted company Stathera IP Holdings Inc. Shares overseas-unlisted company Ningbo SJ Electronics Co., Ltd. Structured deposits China Construction Bank China Merchants Bank China CITIC Bank China Minsheng Bank China Everbright Bank Beneficiary certificate Southern Cash Fund	None TXC Corporation is a director of the Company ″ None ″ ″ ″ None None ″ ″ ″ ″ None	Financial assets at FVTOCI - non-current ″ ″ ″ ″ Financial assets at FVTPL - current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTPL - current ″ ″ ″ ″ Financial assets at fair value through profit or loss - current	800 3,334 6,250 1,788 736 55 65 567 RMB 34,572 RMB 26,317 RMB 42,739 RMB 3,073 RMB 5,000 RMB 65	$ 4,833 12,009 50,000 97,644 181,056 $ 345,542 $ 28,765 $ 30,435 $ 56,728 $ 155,378 118,277 192,083 13,811 22,473 $ 502,002 $ 297	4 12 8 3 1 - 1 5 - - - - - -	$ 4,833 12,009 50,000 97,644 181,056 $ 345,542 $ 28,765 $ 30,435 $ 56,728 $ 155,378 118,277 192,083 13,811 22,473 $ 502,002 $ 297
							(Continued)

55 -

Holding Company Name	Type and Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account		September 30, 2023	September 30, 2023
				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 China Construction Bank Corporation Structured deposits China Construction Bank Corporation	None 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 18,700 RMB 1,051 RMB 753	$ 134,126 $ 84,044 4,722 $ 88,766 $ 3,386	3 - - - -	$ 134,126 $ 84,044 4,722 $ 88,766 $ 3,386
							(Concluded)

56 -

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 NINE MONTHS ENDED SEPTEMBER 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 (Chongqing) Corporation TETC CORP. NINGBO TXC (Chongqing) Corporation ″	Subsidiary ″ ″ ″ ″ ″	Purchase Sales Purchase Purchase Purchase Sales	$ 1,451,143 484,574 1,182,224 291,534 157,234 283,081	34 8 27 7 12 10	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 ″ ″ ″ ″ ″	$ (587,080) 223,718 (547,919) (110,938) (84,173) 188,496	(34) 8 (32) (6) (13) 16

57 -

TABLE 3

TXC CORPORATION AND SUBSIDIARIES

RECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL SEPTEMBER 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	$ 223,718 188,496 587,080 547,919 110,938	3.23 3.64 3.34 3.83 4.15	$ - - - - -	- - - - -	$ 77,080 40,342 192,724 119,129 21,972	$ - - - - -

58 -

TABLE 4

TXC CORPORATION AND SUBSIDIARIES

NAMES, LOCATIONS, AND RELATED INFORMATION OF INVESTEES ON WHICH THE COMPANY EXERCISES SIGNIFICANT INFLUENCE FOR THE NINE MONTHS ENDED SEPTEMBER 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 September 30, 2023	As of September 30, 2023	As of September 30, 2023	Net Income (Losses) of the Investee	Share of Profits (Loss)	Note
				September 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	$ 7,480,384 205,060 33,636 24,522 394,283 11,839	$ 639,893 2,957 4,294 1,514 46,014 2,435	$ 627,315 2,957 4,294 1,514 15,341 2,435

59 -

TABLE 5

TXC CORPORATION AND SUBSIDIARIES

INFORMATION ON INVESTMENT IN MAINLAND CHINA FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2023 (In Thousands of New Taiwan 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 September 30, 2023	Net Income (Loss) of the Investee	% Ownership of Direct or Indirect Investment	Investment Gain (Loss)	Carrying Amount as of September 30, 2023	Accumulated Repatriation of Investment Income as of September 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 - - - - - - - -	$ 639,886 129,443 194,603 (20,233) (19) (38,115) - (265) 2,868	100.00 100.00 100.00 100.00 100.00 29.37 100.00 100.00 100.00	$ 639,886 129,443 194,603 (20,233) (19) (11,399) - (265) 2,868	$ 7,546,321 1,812,034 1,115,988 808,419 6,311 54,772 134,402 (1,516) 5,176	$ 1,390,136 306,500 - - - - - - -
												(Continued)

60 -

(Concluded)

Accumulated Outward Remittance for Investments in mainland China as of September 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.

61 -

TABLE 6

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

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2023 (In Thousands of New Taiwan Dollars)

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 Sales Purchase Purchase	$ 1,451,143 484,574 1,182,224 291,534	34 8 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 ″ ″ ″	$ (587,080) 223,718 (547,919) (110,938)	(34) 8 (32) (6)	$ 28,198 7,005 27,584 6,069

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.
62 -

TABLE 7

TXC CORPORATION AND SUBSIDIARIES

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2023

(In Thousands of New Taiwan Dollars)

For the nine months ended September 30, 2022

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) Limited TETC CORP. NINGBO	a a a	Sales Purchase Trade receivables Trade payables Purchase Trade payables Purchase Trade payables	$ 484,574 1,451,143 223,718 587,080 1,182,224 547,919 291,534 110,938	a a a a a a a a	6 19 1 3 15 3 4 1
1	TXC (Ningbo) Corporation	TXC (Chongqing) Limited TETC CORP. NINGBO	c c	Purchase Sales Trade payables Trade receivables Sales	157,234 283,081 84,173 188,496 27,432	c c c c c	2 4 - 1 -

Note 1: a. Represent the transactions from parent company to subsidiary.
c. Represent the transactions between subsidiaries.
Note 2: For the nine months ended September 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.
63 -

AI assistant

TXC — Interim / Quarterly Report 2023

52274_rns_2023-11-13_fafc5a54-e338-4b86-815b-3557ba2ffb42.pdf

TXC CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In Thousands of New Taiwan Dollars)

TXC CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

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

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

2) Amendments to IAS 21 “Lack of Exchangeability”

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

c. Basis of consolidation

1) Retirement benefits

5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

6. CASH AND CASH EQUIVALENTS

8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

9. FINANCIAL ASSETS AT AMORTIZED COST

10. NOTES RECEIVABLE, TRADE RECEIVABLES AND OTHER RECEIVABLES

September 30, 2022

11. FINANCE LEASE RECEIVABLES

12. INVENTORIES

13. SUBSIDIARIES

Subsidiaries Included in the Consolidated Financial Statements

14. NON-CURRENT ASSETS CLASSIFIED AS HELD FOR SALE

15. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

b. Investment joint venture

16. PROPERTY, PLANT AND EQUIPMENT

17. LEASE ARRANGEMENTS

c. Material lease-in activities and terms

d. Other lease information

18. INVESTMENT PROPERTIES

19. BORROWINGS

b. Short-term bills payable

20. BONDS PAYABLE

21. OTHER LIABILITIES

22. RETIREMENT BENEFIT PLANS

a. Defined contribution plans

b. Defined benefit plans

23. EQUITY

Ordinary shares

b. Capital surplus

24. REVENUE

25. NET PROFIT FROM CONTINUING OPERATIONS

b. Other income

e. Depreciation and amortization

Accrual rate

26. INCOME TAXES RELATING TO CONTINUING OPERATIONS

a. Income tax recognized in profit or loss

b. Income tax assessments

27. EARNINGS PER SHARE

Net Profit for the Period

28. GOVERNMENT GRANTS

29. CAPITAL MANAGEMENT

30. FINANCIAL INSTRUMENTS

a. Fair value of financial instruments

September 30, 2022

Financial Instruments Valuation Techniques and Inputs

Sensitivity analysis

Sensitivity analysis

2) Credit risk

3) Liquidity risk

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

Liquidity and interest rate risk tables for derivative financial liabilities

September 30, 2023

31. TRANSACTIONS WITH RELATED PARTY

b. Sales of goods

d. Operating expenses

TXC Interim / Quarterly Report 2023