T.Y. - Audit Report / Information 2023

Tsang Yow Industrial Co., Ltd.

Parent Company Only Financial Statements for the Years Ended December 31, 2023 and 2022 and Independent Auditors’ Report

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INDEPENDENT AUDITORS’ REPORT

The Board of Directors and Shareholders Tsang Yow Industrial Co., Ltd.

Opinion

We have audited the accompanying parent company only financial statements of Tsang Yow Industrial Co., Ltd. (the “Company”), which comprise the parent company only balance sheets as of December 31, 2023 and 2022, and the parent company only statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes to the parent company only financial statements, including material accounting policy information (collectively referred to as the “parent company only financial statements”).

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

Basis for Opinion

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

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the parent company only financial statements for the year ended December 31, 2023. These matters were addressed in the context of our audit of the parent company only financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

The key audit matter identified in the Company’s parent company only financial statements for the year ended December 31, 2023 is described as follows:

Occurrence of revenue from consignment warehouses

The Company mainly engages in the manufacturing and sales of automobiles and parts thereof. Warehouse consignment is one of the Company’s important sales models. As the Company needed to regularly verify the quantity of the goods sold from the consignment warehouses to recognize the sales revenue, during which manual reconciliation was involved, the potential risk of error posed to the occurrence of the Company’s sales revenue has increased. Therefore, in accordance with the Standards on Auditing of the Republic of China, where revenue recognition is presumed to have a significant risk, the occurrence of sales revenue from consignment warehouses is listed as a key audit matter.

Refer to Note 4 (11) for the accounting policy on revenue recognition.

We have implemented the corresponding audit procedures below for the specific aspects of the above key audit matter, including:

We obtained an understanding of and tested if the Company’s internal control operations related to the sales were effective.
We selected samples from the statements of sales revenue from the consignment warehouses, verified the account reconciliation records between the Company and clients, shipping documents and payment collection documents, and we checked if the recipients were consistent with the transaction counterparties or reviewed the confirmation made by clients to confirm the occurrence of the sales.

Responsibilities of Management and Those Charged with Governance for the Parent Company Only Financial Statements

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

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

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

Auditors’ Responsibilities for the Audit of the Parent Company Only Financial Statements

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

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

Identify and assess the risks of material misstatement of the parent company only financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
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Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the parent company only financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the parent company only financial statements, including the disclosures, and whether the parent company only financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient and appropriate audit evidence regarding the financial information of entities or business activities within the Company to express an opinion on the parent company only financial statements. We are responsible for the direction, supervision, and performance of the audit. We remain solely responsible for our audit opinion.

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

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the parent company only financial statements for the year ended December 31, 2023 and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partners on the audits resulting in this independent auditors’ report are Jia-Ling Chiang and Chiu-Yen Wu.

Deloitte & Touche Taipei, Taiwan Republic of China

March 7, 2024

Notice to Readers

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

For the convenience of readers, the independent auditors’ report and the accompanying parent company only financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language independent auditors’ report and parent company only financial statements shall prevail.

Tsang Yow Industrial Co., Ltd.

PARENT COMPANY ONLY BALANCE SHEETS

(In Thousands of New Taiwan Dollars)

ASSETS CURRENT ASSETS Cash and cash equivalents (Notes 4 and 6) Financial assets at fair value through profit or loss - current (Notes 4, 7 and 25) Notes receivable (Notes 4, 5, 8 and 20) Accounts receivable, net (Notes 4, 5, 8, 20 and 26) Other receivables Other receivables - related parties (Note 26) Current tax assets (Notes 4 and 22) Inventories (Notes 4, 5 and 9) Other financial assets - current (Notes 10 and 27) Other current assets (Note 14) Total current assets NON-CURRENT ASSETS Investments accounted for using the equity method (Notes 4 and 11) Property, plant and equipment (Notes 4, 12, 27 and 28) Right-of-use assets (Notes 4 and 13) Intangible assets (Note 4) Deferred tax assets (Notes 4 and 22) Prepayments for equipment Other financial assets - non -current (Notes 10 ad 27) Other non-current assets (Note 14) Total non-current assets TOTAL LIABILITIES AND EQUITY CURRENT LIABILITIES Short-term borrowings (Notes 15 and 26) Contract liabilities - current (Note 20) Notes payable (Note 16) Accounts payable (Notes 16 and 26) Other payables (Notes 17, 21 and 26) Current tax liabilities (Notes 4 and 22) Lease liabilities - current (Notes 4 and 13) Current portion of long-term borrowings (Notes 15, 26 and 27) Other current liabilities (Note 17) Total current liabilities NON-CURRENT LIABILITIES Long-term borrowings (Notes 15, 26 and 27) Deferred tax liabilities (Notes 4 and 22) Lease liabilities - non-current (Notes 4 and 13) Net defined benefit liabilities (Notes 4 and 18) Other non-current liabilities Total non-current liabilities Total liabilities EQUITY (Notes 4 and 19) Share capital Capital surplus Retained earnings Legal reserve Special reserve Unappropriated earnings Total retained earnings Other equity Treasury shares Total equity TOTAL		December 31, 2023		December 31, 2022
		Amount % $ 860,249 33 485 - - - 205,139 8 1 - - - 937 - 369,051 14 9,681 - 10,698 1 1,456,241 56 - - 1,108,920 43 5,753 - 5,018 - 32,816 1 6,304 - 3,460 - 4,564 - 1,166,835 44 $ 2,623,076 100 $ 20,000 1 7,885 - 10,869 - 145,855 6 105,810 4 78,158 3 2,991 - 109,233 4 43,184 2 523,985 20 261,303 10 - - 2,699 - 4,787 - 100 - 268,889 10 792,874 30 1,030,865 39 150,532 6 113,668 4 31,293 1 515,624 20 660,585 25 - - (11,780) - 1,830,202 70 $ 2,623,076 100		Amount % $ 307,069 11 443 - 64 - 215,864 8 17,708 1 107,544 4 431 - 432,738 16 9,640 - 10,504 - 1,102,005 40 454,426 16 1,170,432 42 3,886 - 9,194 - 39,735 2 1,541 - 2,236 - 592 - 1,682,042 60 $ 2,784,047 100 $ 100,000 4 18,387 1 7,709 - 186,446 7 105,027 4 41,012 1 1,828 - 133,611 5 38,171 1 632,191 23 495,178 18 10,305 - 2,081 - 5,845 - 100 - 513,509 18 1,145,700 41 1,030,865 37 150,532 5 96,923 3 44,054 2 359,046 13 500,023 18 (31,293) (1) (11,780) - 1,638,347 59 $ 2,784,047 100

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

Tsang Yow Industrial Co., Ltd.

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

OPERATING REVENUE (Notes 4, 20 and 26) OPERATING COSTS (Notes 9, 21 and 26) GROSS PROFIT UNREALIZED GAIN ON TRANSACTIONS WITH SUBSIDIARIES (Note 26) REALIZED GAIN (LOSS) ON TRANSACTIONS WITH SUBSIDIARIES (Note 26) REALIZED GROSS PROFIT OPERATING EXPENSES (Notes 8 and 21) Selling and marketing expenses General and administrative expenses Research and development expenses Expected credit gain Total operating expenses PROFIT FROM OPERATIONS NON-OPERATING INCOME AND EXPENSES (Notes 21 and 26) Other income Interest income Other gains and losses Finance costs Share of profit or loss of subsidiaries Total non-operating income and expenses PROFIT BEFORE INCOME TAX INCOME TAX EXPENSE (Notes 4 and 22) NET PROFIT FOR THE YEAR		For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2023 Amount % $ 1,209,167 100 811,665 67 397,502 33 - - 3,107 - 400,609 33 42,362 3 78,903 7 47,102 4 (754) - 167,613 14 232,996 19 6 - 7,215 1 (38,034) (3) (10,402) (1) 155,972 13 114,757 10 347,753 29 74,019 6 273,734 23		2022
				Amount % $ 1,348,972 100 979,249 73 369,723 27 (3,107) - (1,931) - 364,685 27 64,287 5 70,075 5 46,519 4 (604) - 180,277 14 184,408 13 46 - 4,423 1 71,607 5 (12,341) (1) (40,386) (3) 23,349 2 207,757 15 42,367 3 165,390 12

(Continued)

Tsang Yow Industrial Co., Ltd.

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

OTHER COMPREHENSIVE INCOME (Notes 18, 19 and 22) Items that will not be reclassified subsequently to profit or loss: Remeasurement of defined benefit plans Income tax related to items that will not be reclassified subsequently to profit or loss Items that may be reclassified subsequently to profit or loss: Exchange differences on translation of the financial statements of foreign operations Share of the other comprehensive income (loss) of subsidiaries accounted for using the equity method Income tax related to items that may be reclassified subsequently to profit or loss Other comprehensive income for the year, net of income tax TOTAL COMPREHENSIVE INCOME FOR THE YEAR EARNINGS PER SHARE (Note 23) Basic Diluted		For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2023 Amount % $ (739) - 148 - (22,811) (2) 54,124 4 (20) - 30,702 2 $ 304,436 25 $ 2.67 $ 2.66		2022
				Amount % $ 2,579 - (516) - 44,673 3 (28,722) (2) (3,190) - 14,824 1 $ 180,214 13 $ 1.62 $ 1.61

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

(Concluded)

Tsang Yow Industrial Co., Ltd.

PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022 (In Thousands of New Taiwan Dollars)

BALANCE AT JANUARY 1, 2022 Appropriation of 2021 earnings (Note 19) Legal reserve Special reserve Cash dividends Net profit for the year ended December 31, 2022 Other comprehensive income for the year ended December 31, 2022, net of income tax Total comprehensive income for the year ended December 31, 2022 BALANCE AT DECEMBER 31, 2022 Appropriation of 2022 earnings (Note 19) Legal reserve Special reserve Cash dividends Net profit for the year ended December 31, 2023 Other comprehensive income for the year ended December 31, 2023, net of income tax Total comprehensive income for the year ended December 31, 2023 BALANCE AT DECEMBER 31, 2023			Equity Attributable to Owners of the Company	Equity Attributable to Owners of the Company		Treasury Shares $ (11,780) - - - - - - - (11,780) - - - - - - - $ (11,780)	Total Equity $ 1,488,837 - - (30,704) (30,704) 165,390 14,824 180,214 1,638,347 - - (112,581) (112,581) 273,734 30,702 304,436 $ 1,830,202
		Share Capital Capital Surplus $ 1,030,865 $ 150,532 - - - - - - - - - - - - - - 1,030,865 150,532 - - - - - - - - - - - - - - $ 1,030,865 $ 150,532	Retained Earnings		Other Equity Exchange Differences on Translation of the Financial Statements of Foreign Operations $ (44,054) - - - - - 12,761 12,761 (31,293) - - - - - 31,293 31,293 $ -
			Legal Reserve Special Reserve Unappropriated Earnings $ 94,185 $ 40,336 $ 228,753 2,738 - (2,738) - 3,718 (3,718) - - (30,704) 2,738 3,718 (37,160) - - 165,390 - - 2,063 - - 167,453 96,923 44,054 359,046 16,745 - (16,745) - (12,761) 12,761 - - (112,581) 16,745 (12,761) (116,565) - - 273,734 - - (591) - - 273,143 $ 113,668 $ 31,293 $ 515,624	Total $ 363,274 - - (30,704) (30,704) 165,390 2,063 167,453 500,023 - - (112,581) (112,581) 273,734 (591) 273,143 $ 660,585

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

Tsang Yow Industrial Co., Ltd.

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars)

CASH FLOWS FROM OPERATING ACTIVITIES Income before income tax Adjustments for: Depreciation expense Amortization expense Expected credit loss reversed Net loss (gain) on fair value changes of financial assets at fair value through profit or loss Finance costs Interest income Dividend income Share of loss (profit) of subsidiaries accounted for using the equity method Gain on disposal of property, plant and equipment Loss on disposal of subsidiary Inventory loss Unrealized gain on transactions with subsidiaries Realized loss (gain) on transactions with subsidiaries Changes in operating assets and liabilities Notes receivable Accounts receivable Other receivables Inventories Other current assets Contract liabilities Notes payable Accounts payable Other payables Other current liabilities Net defined benefit liabilities Cash generated from operations Interest received Dividends received Interest paid Income tax paid Net cash generated from operating activities CASH FLOWS FROM INVESTING ACTIVITIES Net cash inflow on disposal of subsidiaries (Note 11) Payments for property, plant and equipment Proceeds from disposal of property, plant and equipment Payments for intangible assets Decrease in other receivables - related parties	For the Years Ended December 31	For the Years Ended December 31	For the Years Ended December 31
		2023 $ 347,753 82,302 4,614 (754) (42) 10,402 (7,215) (6) (155,972) (3,145) 55,924 8,846 - (3,107) 64 11,479 17,707 54,841 (194) (10,502) 3,160 (40,591) 3,427 6,789 (1,797) 383,983 7,397 6 (10,634) (40,637) 340,115 587,118 (30,895) 8,415 (438) 107,362	2022 $ 207,757 88,675 5,349 (604) 66 12,341 (4,423) (46) 40,386 (4,496) - 15,469 3,107 1,931 (26) 101,996 (17,697) (55,117) 124 13,893 (3,187) (70,332) 13,444 (14) (1,374) 347,222 4,710 46 (12,597) (571) 338,810 - (60,165) 38,188 (876) 19,856 (Continued)

Tsang Yow Industrial Co., Ltd.

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars)

Increase in other financial assets Increase in other non-current assets Net cash generated from (used in) investing activities CASH FLOWS FROM FINANCING ACTIVITIES Decrease in short-term borrowings Proceeds from long-term borrowings Repayment of long-term borrowings Repayment of the principal portion of lease liabilities Cash dividends Net cash used in financing activities NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR	For the Years Ended December 31	For the Years Ended December 31	For the Years Ended December 31
		2023 $ (1,265) (3,972) 666,325 (80,000) 100,000 (358,253) (2,426) (112,581) (453,260) 553,180 307,069 $ 860,249	2022 $ (1,019) - (4,016) (80,000) 525,000 (820,430) (1,639) (30,704) (407,773) (72,979) 380,048 $ 307,069

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

(Concluded)

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Tsang Yow Industrial Co., Ltd.

1. GENERAL INFORMATION

Tsang Yow Industrial Co., Ltd. (“the Company”) was incorporated in January 1985 and mainly engages in the business activities below:

a. Manufacturing and wholesale of other machinery (automatic transmission and drivetrain systems).
b. Manufacturing and wholesale of ships and parts.
c. Manufacturing and wholesale of automobiles and parts.
d. Manufacturing and wholesale of other machinery and devices (automatic transmission and drivetrain systems).

The Company’s shares have been listed on the Taiwan Stock Exchange since May 2014.

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

2. APPROVAL OF FINANCIAL STATEMENTS

The parent company only financial statements were approved by the board of directors on March 7, 2024.

3. APPLICATION OF NEW, AMENDED 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 “IFRS Accounting Standards”) endorsed and issued into effect by the Financial Supervisory Commission (FSC)

The initial application of the IFRS Accounting Standards endorsed and issued into effect by the FSC did not have a material impact on the Company’s accounting policies.

b. The IFRS Accounting Standards endorsed by the FSC for application starting from 2024

New, Amended and Revised Standards and Interpretations Amendments to IFRS 16 “Leases Liability in a Sale and Leaseback” Amendments to IAS 1 “Classification of Liabilities as Current or Non-current” Amendments to IAS 1 “Non-current Liabilities with Covenants” Amendments to IAS 7 and IFRS 7 “Supplier Finance Arrangements”	Effective Date Announced by IASB (Note 1)
	January 1, 2024 (Note 2) January 1, 2024 January 1, 2024 January 1, 2024 (Note 3)

Note 1: Unless stated otherwise, the above IFRS Accounting Standards will be effective for annual reporting periods beginning on or after their respective effective dates.
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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.

As of the date the parent company only financial statements were authorized for issue, the Company has assessed that the application of other standards and interpretations would not have a material impact on the Company’s financial position and financial performance.

c. The IFRS Accounting Standards in issue but not yet endorsed and issued into effect by the FSC

New, Amended and Revised Standards and Interpretations Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture” IFRS 17 “Insurance Contracts” Amendments to IFRS 17 Amendments to IFRS 17 “Initial Application of IFRS 9 and IFRS 17 - Comparative Information” Amendments to IAS 21 “Lack of Exchangeability”	Effective Date Announced by IASB (Note 1)
	To be determined by IASB January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2025 (Note 2)

Note 1: Unless stated otherwise, the above IFRS Accounting Standards 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.

As of the date the parent company only financial statements were authorized for issue, the Company is continuously assessing the possible impact of the application of other standards and interpretations on the Company’s financial position and financial performance and will disclose the relevant impact when the assessment is completed.

4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

a. Statement of compliance

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

b. Basis of preparation

The parent company only financial statements have been prepared on the historical cost basis except for financial instruments which are measured at fair value, and net defined benefit liabilities which are measured at the present value of the defined benefit obligation less the fair value of plan assets.

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:

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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.

When preparing these parent company only financial statements, the Company used the equity method to account for its investments in subsidiaries. In order for the amounts of the net profit for the year, other comprehensive income for the year and total equity in the parent company only financial statements to be the same with the amounts attributable to the owners of the Company in its consolidated financial statements, adjustments arising from the differences in accounting treatments between the parent company only basis and the consolidated basis were made to investments accounted for using the equity method, the share of profit or loss of subsidiaries, the share of other comprehensive income of subsidiaries and the related equity items, as appropriate, in these parent company only financial statements

c. Classification of current and non-current assets and liabilities

Current assets include:

1) Assets held primarily for the purpose of trading;
2) Assets expected to be realized within 12 months after the reporting period; and
3) Cash and cash equivalents unless the asset is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period.

Current liabilities include:

1) Liabilities held primarily for the purpose of trading;
2) Liabilities due to be settled within 12 months after the reporting period; and
3) Liabilities for which the Company does not have an unconditional right to defer settlement for at least 12 months after the reporting period.

Assets and liabilities that are not classified as current are classified as non-current.

d. Foreign currencies

In preparing the parent company only financial statements, transactions in currencies other than the Company’s functional currency (i.e., foreign currencies) are recognized at the rates of exchange prevailing at the dates of the transactions.

At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Exchange differences on monetary items arising from settlement or translation are recognized in profit or loss in the year in which they arise.

Non-monetary items denominated in foreign currencies that are measured at fair value are retranslated at the rates prevailing at the date when the fair value is determined. Exchange differences arising from the retranslation of non-monetary items are included in profit or loss for the period except for exchange differences arising from the retranslation of non-monetary items in respect of which gains and losses are recognized directly in other comprehensive income, in which cases, the exchange differences are also recognized directly in other comprehensive income.

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Non-monetary item denominated in a foreign currency and measured at historical cost is stated at the reporting currency as originally translated from the foreign currency.

For the purpose of presenting the parent company only financial statements, the financial statements of the Company’s foreign operations (including subsidiaries) that are prepared using functional currencies which are different from the currency of the Company are translated into the presentation currency, the New Taiwan dollar, as follows: Assets and liabilities are translated at the exchange rates prevailing at the end of the reporting period; and income and expense items are translated at the average exchange rates for the period. The resulting currency translation differences are recognized in other comprehensive income.

On the disposal of a foreign operation (i.e., a disposal of the Company’s entire interest in a foreign operation, or a disposal involving the loss of control over a subsidiary that includes a foreign operation), all of the exchange differences accumulated in equity in respect of that operation are reclassified to profit or loss.

e. Inventories

Inventories consist of raw materials, supplies, work in progress and finished goods and are stated at the lower of weighted-average cost or net realizable value. Inventory write-downs are made by item, except where it may be appropriate to group similar or related items. The net realizable value is the estimated selling price of inventories less all estimated costs of completion and costs necessary to make the sale. Inventories are recorded at the weighted-average cost on the balance sheet date.

f. Investments in subsidiaries

The Company uses the equity method to account for its investments in subsidiaries.

A subsidiary is an entity that is controlled by the Company.

Under the equity method, an investment in a subsidiary is initially recognized at cost and adjusted thereafter to recognize the Company’s share of the profit or loss and other comprehensive income of the subsidiary. The Company also recognizes the changes in the Company’s share of equity of subsidiaries.

Changes in the Company’s ownership interest in a subsidiary that do not result in the Company losing control of the subsidiary are accounted for as equity transactions. The Company recognizes directly in equity any difference between the carrying amount of the investment and the fair value of the consideration paid or received.

The Company assesses its investment for any impairment by comparing the carrying amount with the estimated recoverable amount as assessed based on the investee’s financial statements as a whole. Impairment loss is recognized when the carrying amount exceeds the recoverable amount. If the recoverable amount of the investment subsequently increases, the Company recognizes a reversal of the impairment loss; the adjusted post-reversal carrying amount should not exceed the carrying amount that would have been recognized (net of amortization or depreciation) had no impairment loss been recognized in prior years. An impairment loss recognized on goodwill cannot be reversed in a subsequent period.

When the Company loses control of a subsidiary, it recognizes the investment retained in the former subsidiary at its fair value at the date when control is lost. The difference between the fair value of the retained investment plus any consideration received and the carrying amount of the previous investment at the date when control is lost is recognized as a gain or loss in profit or loss. Besides this, the Company accounts for all amounts previously recognized in other comprehensive income in relation to that subsidiary on the same basis as would be required had the Company directly disposed of the related assets or liabilities.

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Profit or loss resulting from downstream transactions is eliminated in full only in the parent company only financial statements. Profit and loss resulting from upstream transactions and transactions between subsidiaries is recognized only in the parent company only financial statements and only to the extent of interests in the subsidiaries that are not related to the Company.

g. Property, plant, and equipment

Property, plant and equipment are initially measured at cost and subsequently measure at cost less accumulated depreciation and accumulated impairment loss.

Property, plant and equipment in the course of construction are measured at cost less any recognized impairment loss. Cost includes professional fees and borrowing costs eligible for capitalization. Such assets are depreciated and classified to the appropriate categories of property, plant and equipment when completed and ready for their intended use.

Except for freehold land, which is not depreciated, the depreciation of property, plant, and equipment is recognized using the straight-line method. Each significant part is depreciated separately. The estimated useful lives, residual values and depreciation methods are reviewed at the end of each reporting period, with the effects of any changes in the estimates accounted for on a prospective basis.

On derecognition of an item of property, plant and equipment, the difference between the sales proceeds and the carrying amount of the asset is recognized in profit or loss.

h. Intangible assets
1) Intangible assets acquired separately

Intangible assets with finite useful lives that are acquired separately are initially measured at cost and subsequently measured at cost less accumulated amortization and accumulated impairment loss. Amortization is recognized on a straight-line basis. The estimated useful lives, residual values, and amortization methods are reviewed at the end of each reporting period, with the effect of any changes in the estimates accounted for on a prospective basis.

2) Derecognition of intangible assets

On derecognition of an intangible asset, the difference between the net disposal proceeds and the carrying amount of the asset is recognized in profit or loss.

i. Impairment of property, plant and equipment, right-of-use asset and intangible assets

At the end of each reporting period, the Company reviews the carrying amounts of its property, plant and equipment, right-of-use assets and intangible assets to determine whether there is any indication that those assets have suffered any impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. Corporate assets are allocated to the individual cash-generating units or the smallest group of cash-generating units on a reasonable and consistent basis of allocation.

The recoverable amount is the higher of fair value less costs to sell and value in use. If the recoverable amount of an asset or cash-generating unit is estimated to be less than its carrying amount, the carrying amount of the asset or cash-generating unit is reduced to its recoverable amount, with the resulting impairment loss recognized in profit or loss.

When an impairment loss is subsequently reversed, the carrying amount of the corresponding asset or cash-generating unit is increased to the revised estimate of its recoverable amount, but only to the

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extent of the carrying amount that would have been determined had no impairment loss been recognized on the asset or cash-generating unit in prior years. A reversal of an impairment loss is recognized in profit or loss.

j. Financial instruments

Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions of the instruments.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issuance of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss (FVTPL)) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at FVTPL are recognized immediately in profit or loss.

1) Financial assets

All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis.

a) Measurement categories

Financial assets are classified into the following categories: financial assets at FVTPL and financial assets at amortized cost.

i Financial assets at FVTPL

Financial assets are classified as at FVTPL when such financial assets are mandatorily classified or designated as at FVTPL. Financial assets mandatorily classified as at FVTPL include investments in equity instruments which are not designated as at FVTOCI and debt instruments that do not meet the amortized cost criteria or the FVTOCI criteria.

Financial assets at FVTPL are subsequently measured at fair value, and any dividends and remeasurement gains or losses on such financial assets are recognized in other gains or losses. Fair value is determined in the manner described in Note 25 Financial Instruments.

ii Financial assets at amortized cost

Financial assets that meet the following conditions are subsequently measured at amortized cost:

i) The financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and
ii) The contractual terms of the financial assets give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Subsequent to initial recognition, financial assets at amortized cost, including cash and cash equivalents, notes receivable at amortized cost,accounts receivable (including related parties), other receivables (including related party) and other financial assets, are measured at amortized cost, which equals the gross carrying amount determined using the effective interest method less any impairment loss. Exchange differences are recognized in profit or loss.

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Interest income is calculated by applying the effective interest rate to the gross carrying amount of such a financial asset.

A financial asset is credit impaired when one or more of the following events have occurred:

i) Significant financial difficulty of the issuer or the borrower
ii) Breach of contract, such as a default
iii) It is becoming probable that the borrower will enter bankruptcy or undergo a financial reorganization ； or
iv) The disappearance of an active market for that financial asset because of financial difficulties.

Cash equivalents include time deposits with original maturities within 3 months from the date of acquisition, which are highly liquid, readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value. These cash equivalents are held for the purpose of meeting short-term cash commitments.

b) Impairment of financial assets

The Company recognizes a loss allowance for expected credit losses on financial assets at amortized cost (including notes receivable and accounts receivable).

The Company always recognizes lifetime expected credit losses (ECLs) for notes receivable and accounts receivable. For all other financial instruments, the Company recognizes lifetime ECLs when there has been a significant increase in credit risk since initial recognition. If, on the other hand, the credit risk on the financial instruments has not increased significantly since initial recognition, the Company measures the loss allowance for that financial instrument at an amount equal to 12-month ECLs.

Expected credit losses reflect the weighted average of credit losses with the respective risks of default occurring as the weights. Lifetime ECLs represent the expected credit losses that will result from all possible default events over the expected life of a financial instrument. In contrast, 12-month ECLs represent the portion of lifetime ECLs that is expected to result from default events on a financial instrument that are possible within 12 months after the reporting date.

For internal credit risk management purposes, the Company considers the following situations as indication that a financial asset is in default without taking into account any collateral held by the Company:

i Internal or external information shows that the debtor is unlikely to pay its creditors.
ii Fnancial asset is more than 180 days past due unless the Company has reasonable and corroborative information to support a more lagged default criterion.

The impairment loss of all financial assets is recognized in profit or loss by a reduction in their carrying amounts through a loss allowance account.

c) Derecognition of financial assets

The Company derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.

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On derecognition of a financial asset at amortized cost in its entirety, the difference between the asset’s carrying amount and the sum of the consideration received and receivable is recognized in profit or loss.

2) Equity instruments

Equity instruments issued by the Company are recognized at the proceeds received, net of direct issue costs.

The repurchase of the Company’s own equity instruments is recognized in and deducted directly from equity, and its carrying amounts are calculated based on weighted average by share types. No gain or loss is recognized in profit or loss on the purchase, sale, issuance or cancellation of the Company’s own equity instruments.

3) Financial liabilities
a) Subsequent measurement

All financial liabilities are measured at amortized cost using the effective interest method.

b) Derecognition of financial liabilities

The difference between the carrying amount of the financial liability derecognized and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in profit or loss.

k. Revenue recognition

The Company identifies contracts with customers, allocates the transaction price to the performance obligations and recognizes revenue when performance obligations are satisfied.

1) Revenue from sale of goods

Revenue from the sale of goods comes from sales of automatic transmission components. Sales of automatic transmission components are recognized as revenue when the goods are delivered to the customer’s specific location or the goods are shipped because it is the time when the customer has full discretion over the manner of distribution and price to sell the goods, has the primary responsibility for sales to future customers and bears the risks of obsolescence. Accounts receivable is recognized concurrently.

Revenue is measured at the fair value of the consideration received or receivable, less estimated returns, discounts, and other similar discounts. Returns and discounts are recognized at reasonable estimates of the monetary amount of future returns based on the past experience and other relevant factors.

The Company does not recognize revenue on materials delivered to subcontractors because this delivery does not involve a transfer of control.

2) Revenue from the rendering of services

Revenue from processing on order is recognized as the Company fulfills their obligation over time.

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l. Leases

At the inception of a contract, the Company assesses whether the contract is, or contains, a lease.

The Company as a lessee

The Company recognizes right-of-use assets and lease liabilities for all leases at the commencement date of a lease, except for short-term leases and low-value asset leases accounted for by applying a recognition exemption where lease payments are recognized as expenses on a straight-line basis over the lease terms.

Right-of-use assets are initially measured at cost, which comprises the initial measurement of lease liabilities adjusted for lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs needed to restore the underlying assets, and less any lease incentives received. Right-of-use assets are subsequently measured at cost less accumulated depreciation and impairment losses and adjusted for any remeasurement of the lease liabilities. Right-of-use assets are presented on a separate line in the parent company only balance sheets.

Right-of-use assets are depreciated using the straight-line method from the commencement dates to the earlier of the end of the useful lives of the right-of-use assets or the end of the lease terms.

Lease liabilities are initially measured at the present value of the lease payments, which comprise fixed payments. The lease payments are discounted using the interest rate implicit in a lease. If that rate cannot be readily determined, the lessee’s incremental borrowing rate will be used.

Subsequently, lease liabilities are measured at amortized cost using the effective interest method, with interest expense recognized over the lease terms. When there is a change in future lease payments resulting from a change in fixed payments and a lease term, the Company remeasures the lease liabilities with a corresponding adjustment to the right-of-use assets. However, if the carrying amount of the right-of-use assets is reduced to zero, any remaining amount of the remeasurement is recognized in profit or loss. Lease liabilities are presented on a separate line in the parent company only balance sheets.

m. Borrowing Costs

Borrowing costs directly attributable to an acquisition, construction or production of qualifying assets are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.

Other than those stated above, all other borrowing costs are recognized in profit or loss in the year in which they are incurred.

n. Government grants

Government grants are not recognized until there is reasonable assurance that the Company will comply with the conditions attached to them and that the grants will be received.

Government grants related to income are recognized in other income on a systematic basis over the periods in which the Company recognizes as expenses the related costs that the grants intend to compensate.

Government grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the Company with no future related costs are recognized in profit or loss in the period in which they are received.

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o. Employee benefits

1) Short-term employee benefits

Liabilities recognized in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related services.

2) Retirement benefits

Payments to defined contribution retirement benefit plans are recognized as expenses when employees have rendered services entitling them to the contributions.

Defined benefit costs (including service cost, net interest and remeasurement) under the defined benefit retirement benefit plans are determined using the projected unit credit method. Service cost and net interest on the net defined benefit liabilities are recognized as employee benefits expenses in the period in which they occur. Remeasurement, comprising actuarial gains and losses and the return on plan assets (excluding interest) is recognized in other comprehensive income in the period in which it occurs. Remeasurement recognized in other comprehensive income is reflected immediately in retained earnings and will not be reclassified to profit or loss.

Net defined benefit liabilities represent the actual deficit in the Company’s defined benefit plans.

p. Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

1) Current tax

Income tax payable (recoverable) is based on taxable profit (loss) for the year determined according to the applicable tax laws of tax jurisdiction.

According to the Income Tax Act of the ROC, an additional tax on unappropriated earnings is provided for in the year the shareholders approve to retain the earnings.

Adjustments of prior years’ tax liabilities are added to or deducted from the current year’s tax provision.

2) Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities and the corresponding tax bases used in the computation of taxable profit.

Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized.

Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries and associates, except where the Company is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are only recognized to the extent that it is probable that there will be sufficient taxable profits against which to utilize the benefits of the temporary differences and such temporary differences are expected to reverse in the foreseeable future.

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The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the assets to be recovered. A previously unrecognized deferred tax asset is also reviewed at the end of each reporting period and recognized to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liabilities are settled or the assets are realized, based on tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

3) Current and deferred taxes for the year

Current and deferred taxes are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive income or directly in equity, in which case, the current and deferred taxes are also recognized in other comprehensive income or directly in equity, respectively.

5. MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Company’s accounting policies, management is required to make judgments, estimations and assumptions on 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 estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the year in which the estimates are revised if the revisions affect only that year or in the year of the revisions and future years if the revisions affect both current and future years.

Key sources of estimation uncertainty

a. Estimated impairment of financial assets

The provision for impairment of accounts receivable is based on assumptions on probability of default and loss given default. The Company uses judgment in making these assumptions and in selecting the inputs to the impairment calculation, based on the Company’s historical experience, existing market conditions as well as forward looking estimates as of the end of each reporting period. For details of the key assumptions and inputs used, see Note 8. Where the actual future cash inflows are less than expected, a material impairment loss may arise.

b. Write-down of inventories

The net realizable value of inventories is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. The estimation of net realizable value is based on current market conditions and historical experience in the sale of product of a similar nature. Changes in market conditions may have a material impact on the estimation of the net realizable value.

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6. CASH AND CASH EQUIVALENTS

December 31 2023 2022 Cash on hand $ 618 $ 570 Checking accounts and demand deposits 152,244 168,701 Cash equivalents Time deposits with original maturities of 3 months or less 707,387 137,798 $ 860,249 $ 307,069 The market rate intervals of cash equivalents at the end of the reporting period were as follows: December 31 2023 2022 Time deposits (%) 2.68-5.65 1.45-4.80		December 31
	2023 2022 2.68-5.65 1.45-4.80

The Company interacts with a variety of financial institutions with sound credit ratings to disperse credit risk; hence, the probability of default is expected to be low.

7. FINANCIAL INSTRUMENTS AT FVTPL

Financial assets-current Mandatorily classified as at FVTPL Non-derivative financial assets - domestic listed shares		December 31	December 31
		2023 $ 485	2022 $ 443

8. NOTES RECEIVABLE AND ACCOUNTS RECEIVABLE, NET

Notes receivable - operating At amortized cost Accounts receivable - operating At amortized cost Gross carrying amount (include related parties) Less: Allowance for impairment loss		December 31	December 31
		2023 $ - $ 206,114 975 $ 205,139	2022 $ 64 $ 217,593 1,729 $ 215,864

The credit period for sales of goods is 15-140 days. 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 Company 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 Company’s credit risk was significantly reduced.

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The Company measures the loss allowance for accounts receivable at an amount equal to lifetime ECLs. The expected credit losses on 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 and industry outlook. As the Company’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 Company’s different customer base.

The Company writes off receivables when there is evidence indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery. For receivables that have been written off, the Company 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 tables detail the loss allowance of receivables based on the Company’s provision matrix:

December 31, 2023

Not Past Due Expected credit loss rate (%) - Gross carrying amount $ 150,165 Loss allowance (lifetime ECLs) - Amortized cost $ 150,165 December 31, 2022 Not Past Due Expected credit loss rate (%) - Gross carrying amount $ 177,895 Loss allowance (lifetime ECLs) - Amortized cost $ 177,895	Past Due 1-30 Days - $ 41,282 - $ 41,282 Past Due 1-30 Days 1 $ 28,718 (261) $ 28,457	Past Due 31-90 Days Past Due Over 91 Days 1-2 9-100 $ 11,915 $ 2,752 (139) (836) $ 11,776 $ 1,916 Past Due 31-90 Days Past Due Over 91 Days 5-25 50-100 $ 8,524 $ 2,520 (1,317) (151) $ 7,207 $ 2,369	Total $ 206,114 (975) $ 205,139 Total $ 217,657 (1,729) $ 215,928

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

Balance at January 1 Impairment losses reversed Balance at December 31	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2023 $ 1,729 (754) $ 975	2022 $ 2,333 (604) $ 1,729

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9. INVENTORIES

Finished goods Work in process Raw materials Supplies		December 31	December 31
		2023 $ 181,041 128,776 41,388 17,846 $ 369,051	2022 $ 201,459 140,009 63,645 27,625 $ 432,738

The nature of cost of goods sold is as follows:

Cost of inventories sold Inventory write-downs Inventory obsolescence losses Income from sale of scraps Gains from physical counts		December 31	December 31
		2023 $ 811,384 4,204 5,183 (10,570) (541) $ 809,660	2022 $ 976,775 11,684 4,949 (13,236) (1,164) $ 979,008

10. OTHER FINANCIAL ASSETS

Pledged time deposits (Note 27) Refundable deposits Current Non-current		December	31
		2023 $ 10,181 2,960 $ 13,141 $ 9,681 3,460 $ 13,141	2022 $ 10,140 1,736 $ 11,876 $ 9,640 2,236 $ 11,876

The market rate intervals of pledged time deposits at the end of the reporting period were as follows:

Time deposits (%)	December 31
	2023 2022 1.58-3.05 1.33-1.45

The Company interacts with a variety of financial institutions with sound credit ratings to disperse credit risk, hence, the probability of default is expected to be low.

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11. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

Investments in subsidiaries Unlisted company Giant Finance Inc. (Giant) All-Aspect International Corp. (AAI)		December 31	December 31	December 31
		2023 Carrying Amount Percentage of Ownership $ - - - - $ -		2022
				Carrying Amount Percentage of Ownership $ 422,736 100 31,690 100 $ 454,426

Refer to Tables 4 and 5 for details on the Company’s investees and investment in Mainland China. The Company signed a contract to sell the equity interests of its subsidiary, Wuxi Tsang Yow Auto Parts Co., Ltd. (Wuxi Tsang You), located in mainland China, in May 2023. The transfer of equity was completed and registered in July 2023. Furthermore, the board of directors resolved to liquidate Giant, Business International Corp. (Business), and AAI in November 2023 and the liquidation processes were completed in November and December 2023, resulting in the recovery of $587,118 thousand (comprising US$3,267 thousand and RMB111,000 thousand), and recognizing a disposal loss of $55,924 thousand. The company lost control of the aforementioned subsidiaries. For further details regarding the disposal of subsidiaries, refer to Note 25 of the Company's consolidated financial statements for 2023.

The board of directors resolved the establishment of YORU Tech SDN. BHD., a joint venture in Malaysia, in August 2023.

The planned investment is US$6.6 million, with a 55% ownership stake. The establishment registration has already been completed. As of the end of the current year, the company has injected US$110,000 into the venture but has not completed the verification process. This investment is recorded as other non-current assets.

12. PROPERTY, PLANT AND EQUIPMENT

a. The movements in costs and accumulated depreciation are as follows:

For the year ended December 31, 2023

Cost Balance at January 1, 2023 Additions Disposals Balance at December 31, 2023	Freehold Land $ 317,004 - - $ 317,004	Buildings $ 549,659 - - $ 549,659	Machinery and Equipment $ 663,050 14,613 (1,929) $ 675,734	Other Equipment Equipment to be Accepted and Unfinished Construction Total $ 131,939 $ 17,816 $ 1,679,468 16,366 (7,259 ) 23,720 (19,620) - (21,549) $ 128,685 $ 10,557 $ 1,681,639 (Continued)

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Accumulated depreciation Balance at January 1, 2023 Depreciation expense Disposals Balance at December 31, 2023 Carrying amount at December 31, 2023	Freehold Land $ - - - $ - $ 317,004	Buildings $ 169,891 11,502 - $ 181,393 $ 368,266	Machinery and Equipment $ 290,191 50,720 (1,929) $ 338,982 $ 336,752	Other Equipment Equipment to be Accepted and Unfinished Construction Total $ 48,954 $ - $ 509,036 17,740 - 79,962 (14,350) - (16,279) $ 52,344 $ - $ 572,719 $ 76,341 $ 10,557 $ 1,108,920 (Concluded)

For the year ended December 31, 2022

Cost Balance at January 1, 2022 Additions Disposals Balance at December 31, 2022 Accumulated depreciation Balance at January 1, 2022 Depreciation expense Disposals Balance at December 31, 2022 Carrying amount at December 31, 2022	Freehold Land $ 317,004 - - $ 317,004 $ - - - $ - $ 317,004	Buildings $ 549,659 - - $ 549,659 $ 158,304 11,587 - $ 169,891 $ 379,768	Machinery and Equipment $ 693,278 7,873 (38,101) $ 663,050 $ 270,663 57,629 (38,101) $ 290,191 $ 372,859	Other Equipment Equipment to be Accepted and Unfinished Construction $ 118,023 $ 33,858 70,533 (16,042 ) (56,617) - $ 131,939 $ 17,816 $ 54,074 $ - 17,805 - (22,925) - $ 48,954 $ - $ 82,985 $ 17,816	Total $ 1,711,822 62,364 (94,718) $ 1,679,468 $ 483,041 87,021 (61,026) $ 509,036 $ 1,170,432

b. Property, plant and equipment used by the Company are depreciated on a straight-line basis over their estimated useful lives as follows:

Buildings Main buildings of plants 50 years Landscape engineering and fences 7-15 years Machinery and equipment 3-15 years Other equipment 3-15 years

Refer to Note 27 for the carrying amount of property, plant and equipment pledged as collateral for borrowings.

c. Investing activities that affect both cash and non-cash items are as follows:

Increase in property, plant and equipment Increase (decrease) in prepayments for equipment	For the Year Ended December 31
	2023 2022 $ 23,720 $ 62,364 4,763 (4,747) (Continued)

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Interest capitalization Decrease in payables for machinery and equipment Cash paid for purchase of property, plant and equipment	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2023 $ (234) 2,646 $ 30,895	2022 $ (390) 2,938 $ 60,165 (Concluded)

13. LEASE ARRANGEMENTS

a. Right-of-use assets

Carrying amount of right-of-use assets Transportation equipment Additions to right-of-use assets Right-of-use assets depreciation expense Transportation equipment		December	31
	2023 2022 $ 5,753 $ 3,886 For the Year Ended December 31
		2023 $ 4,207 $ 2,340	2022 $ 4,349 $ 1,654

Except for the additions and recognition of depreciation expenses, there were no significant subleases or impairment of the right-of-use assets of the company in 2023 and 2022.

b. Lease liabilities

	December	31
	2023 $ 2,991 $ 2,699 December	2022 $ 1,828 $ 2,081 31
2023 2022 1.37-1.84 1.37-1.38 For the Year Ended December 31
	2023 $ 240 $ 2,736	2022 $ 240 $ 1,929

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The Company’s leases of photocopiers qualify as low-value asset leases. The Company has elected to apply the recognition exemption and thus, did not recognize right-of-use assets and lease liabilities for these leases.

14. OTHER ASSETS

Current Excess business tax paid Prepaid expenses Prepayments to supplies Other Non-current Prepayment for investment (Note 11) Other BORROWINGS a. Short-term borrowings Unsecured borrowings The annual interest rates of short-term borrowings were as follows: Unsecured borrowings in bank (%) b. Long-term borrowings Secured borrowings (Note 27) Unsecured borrowings Less: Current portion Long-term borrowings		December	31
		2023 $ 3,974 3,339 878 2,507 $ 10,698 $ 3,972 592 $ 4,564 December	2022 $ 4,695 2,335 1,000 2,474 $ 10,504 $ - 592 $ 592 31
		2023 $ 20,000 December	2022 $ 100,000 31
		2023 1.65 December	2022 1.40-1.55 31
		2023 $ 312,337 58,199 370,536 109,233 $ 261,303	2022 $ 467,143 161,646 628,789 133,611 $ 495,178

15. BORROWINGS

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Details are as follows:

Rate of Annual Borrowings Due Date Major Terms Interest (%) Secured borrowings First Commercial Bank 2025.12 It is amortized every six months in 12 installments, starting in June 2020. 1.84 E.SUN Bank 2033.11 It is amortized in 156 monthly installments, starting in December 2020. 1.88 Mega International Commercial Bank 2028.11 It is amortized in 120 monthly installments, starting in December 2018. 1.85 The Shanghai Commercial & Saving Bank, Ltd. 2028.03 It is amortized in 40 quarterly installments, starting in June 2018. 1.90 The Shanghai Commercial & Saving Bank, Ltd. 2024.10 It is amortized in 20 quarterly installments, starting in January 2020, it was paid off in full ahead of time in November 2023. 1.90 The Shanghai Commercial & Saving Bank, Ltd. 2027.08 It began in August 2022 with a grace period of one year and is amortized in 16 quarterly installments, starting in November 2023. 1.90 Unsecured borrowings Mega International Commercial Bank 2026.11 Revolving credit line 1.80 E.SUN Bank 2024.09 It is amortized in 36 monthly installments, starting in October 2021. 1.78 E.SUN Bank 2025.12 It is amortized in 36 monthly installments, starting in January 2023. 1.73 Taipei Fubon Bank 2023.06 It is amortized in 30 monthly installments, starting in January 2021. 1.81		December 31	December 31
		2023 $ 71,000 81,848 73,750 76,364 - 9,375 - 27,945 30,254 - $ 370,536	2022 $ 170,000 89,302 88,750 89,091 20,000 10,000 40,000 64,646 45,000 12,000 $ 628,789

16. NOTES AND ACCOUNTS PAYABLE

Notes payable Accounts payable (including related parties)		December 31	December 31
		2023 $ 10,869 $ 145,855	2022 $ 7,709 $ 186,446

The aforementioned amounts are all incurred due to business operations. The credit terms for purchasing raw materials range from 30 days to 120 days. The Company has financial risk management policies in place to ensure that all payables are paid within the pre-agreed credit terms.

17. OTHER LIABILITIES

Otherpayables Payables for salaries or bonuses Payables for annual leave Payable for machinery and equipment	December 31
	2023 2022 $ 42,770 $ 42,162 8,762 9,554 3,599 6,245 (Continued)

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Payable for compensation of employees and remuneration of directors (Note 21) Others Non-related parties Related parties Othercurrentliabilities Refund liabilities Temporary credits Other advance receipts Others		December 31	December 31
		2023 $ 22,218 28,461 $ 105,810 $ 105,810 - $ 105,810 $ 666 - 42,022 496 $ 43,184	2022 $ 18,312 28,754 $ 105,027 $ 104,845 182 $ 105,027 $ 904 1,776 35,220 271 $ 38,171 (Concluded)

18. 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, the Company makes monthly contributions to employees’ individual pension accounts at 6% of monthly salaries and wages.

b. Defined benefit plans

The defined benefit plan adopted by the Company in accordance with the Labor Standards Act is operated by the government of the ROC. Pension benefits are calculated on the basis of the length of service and average monthly salaries of the 6 months before retirement. The Company contributes amounts equal to 2% of total monthly salaries and wages to a pension fund administered by the pension fund monitoring committee. Pension contributions are deposited in the Bank of Taiwan in the committee’s name. Before the end of each year, the Company assesses the balance in the pension fund. If the amount of the balance in the pension fund is inadequate to pay retirement benefits for employees who conform to retirement requirements in the next year, the Company is required to fund the difference in one appropriation that should be made before the end of March of the next year. The pension fund is managed by the Bureau of Labor Funds, Ministry of Labor (the “Bureau”); the Company has no right to influence the investment policy and strategy.

The amounts included in the parent company only balance sheets in respect of the Company’s defined benefit plans were as follows:

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Present value of defined benefit obligation Fair value of plan assets Net defined benefit liabilities Movements in net defined benefit liabilities were as follows:		December	31
		2023 $ 10,791 (6,004) $ 4,787	2022 $ 14,079 (8,234) $ 5,845

	Present Value
	of the Defined		Net Defined
	Benefit	Fair Value of		Benefit
	Obligation	the Plan Assets	Liabilities
Balance at January 1, 2022	$ 16,363	$ (6,565)	$	9,798
Net interest expense (income)	110	(42)		68
Recognized in profit or loss	110	(42)		68
Remeasurement
Return on plan assets	-	(796)		(796)
Actuarial gain - experience adjustments	(941)	-		(941)
Actuarial gain - changes in financial
assumptions	(842)	-		(842)
Recognized in other comprehensive loss	(1,783)	(796)		(2,579)
Contributions from the employer	-	(1,442)		(1,442)
Benefits paid	(611)	611		-
Balance at December 31, 2022	14,079	(8,234)		5,845
Net interest expense (income)	148	(81)		67
Recognized in profit or loss	148	(81)		67
Remeasurement
Return on plan assets	-	(84)		(84)
Actuarial loss - experience adjustments	727	-		727
Actuarial loss - changes in financial
assumptions	96	-		96
Recognized in other comprehensive loss	823	(84)		739
Contributions from the employer	-	(1,864)		(1,864)
Benefits paid	(4,259)	4,259		-
Balance at December 31, 2023	$ 10,791	$ (6,004)	$	4,787

Through the defined benefit plans under the Labor Standards Act, the Company is exposed to the following risks:

1) Investment risk

The plan assets are invested in domestic and foreign equity and debt securities, bank deposits, etc. The investment is conducted at the discretion of the Bureau or under the mandated management.

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However, in accordance with relevant regulations, the return generated by plan assets shall not be below the interest rate for a 2-year time deposit with local banks.

2) Interest risk

A decrease in the government bond interest rate will increase the present value of the defined benefit obligation; however, this will be partially offset by an increase in the return on the plan’s debt investments.

3) Salary risk

The present value of the defined benefit obligation is calculated using the future salaries of plan participants. As such, an increase in the salaries of the plan participants will increase the present value of the defined benefit obligation.

The actuarial valuations of the present value of the defined benefit obligation were carried out by qualified actuaries. The significant assumptions used for the purposes of the actuarial valuations were as follows:

Discount rate (%) Expected rate of salary increase (%)	December 31
	2023 2022 1.3 1.4 1.5 1.5

If possible reasonable changes in each of the significant actuarial assumptions occur and all other assumptions remain constant, the present value of the defined benefit obligation will increase (decrease) as follows:

Discount rate 0.25% increase 0.25% decrease Expected rate of salary increase 0.25% increase 0.25% decrease		December 31	December 31
		2023 $ (246) $ 254 $ 246 $ (239)	2022 $ (330) $ 341 $ 330 $ (321)

The sensitivity analysis presented above may not be representative of the actual changes in the present value of the defined benefit obligation as it is unlikely that the changes in assumptions will occur in isolation of one another as some of the assumptions may be correlated.

Expected contributions to the plans for the next year Average duration of the defined benefit obligation		December	31
		2023 $ 5,796 10 years	2022 $ 2,133 11 years

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19. EQUITY

a. Ordinary shares

Number of authorized shares (in thousands) Amount of authorized shares Number of issued and fully paid shares (in thousands) Amount of issued and fully paid shares		December 31	December 31
		2023 150,000 $ 1,500,000 103,087 $ 1,030,865	2022 150,000 $ 1,500,000 103,087 $ 1,030,865

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

b. Capital surplus

May be used to offset a deficit, distributed as cashdividends, ortransferred to share capital(Note) Additional paid-in capital - Issuance of ordinary shares Treasury shares traded		December 31	December 31
		2023 $ 145,471 5,061 $ 150,532	2022 $ 145,471 5,061 $ 150,532

Note: 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 to once a year).

c. Retained earnings and dividends policy

Under the dividends policy as set forth in the Articles, where the Company made a profit in a fiscal year, the profit shall be first utilized for paying taxes, offsetting losses of previous years, setting aside as a legal reserve 10% of the remaining profit, except when the accumulated amount of such legal reserve equals to the Company’s total issued capital, 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 by the shareholders in their meeting for the distribution of dividends and bonuses to shareholders.

In addition, in accordance with the Articles of the Company, the board of directors is authorized to adopt a special resolution to distribute dividends and bonuses in cash and a report of such distribution should be submitted in the shareholders’ meeting.

The Company will consider the industry condition and the growth stage of the Company to meet capital needs and cash flow demands from shareholders in alignment with the long-term financial plan. Therefore, a certain percentage of distributable earnings will be provided for shareholder dividends, of which the cash dividends shall not be lower than 10% of all dividends to be paid out. The types and percentages of such dividends may be adjusted depending on the year’s profit and capital needs by the resolution of the shareholders’ meeting.

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An appropriation of earnings to a 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.

The appropriations of earnings for 2022 and 2021 were as follows:

Legal reserve Special reserve (reversed) Cash dividends to shareholders		Appropriation of Earnings For the Year Ended December 31 2022 2021 $ 16,745 $ 2,738 $ (12,761) $ 3,718 $ 112,581 $ 30,704	Dividends Per Share (NT$)
			For the Year Ended December 31
		2022 $ 16,745 $ (12,761) $ 112,581	2022 2021 $ 1.10 $ 0.30

The above appropriations for cash dividends were resolved by the Company’s board of directors in March 2023 and March 2022, respectively; the other proposed appropriations were resolved by the shareholders in their meetings in May 2023 and June 2022, respectively.

The appropriations of earnings for 2023 were proposed by the Company’s board of directors in March 2024. The appropriations and dividends per share were as follows:

	Appropriation	Appropriation	Dividends Per	Dividends Per
	of	Earnings	Share	(NT$)
Legal reserve	$	27,314
Special reserve	$	(31,293)
Cash dividends to shareholders	$	137,144	$	1.34

The above appropriation for cash dividends has been resolved by the Company’s board of directors; the other proposed appropriations will be resolved by the shareholders in their meeting to be held in May 2024.

d. Special reserve

A proportionate share of the special reserve relating to exchange differences on translating the financial statements of foreign operations will be reversed on the Company’s disposal of foreign operations; on the Company’s loss of significant influence, however, the entire special reserve will be reversed. Additional special reserves should be appropriated for the amount equal to the difference between net debit balance reserves and the special reserve appropriated on the first-time adoption of IFRS Accounting Standards, which was $19,782 thousand. Any special reserve appropriated may be reversed to the extent that the net debit balance reverses and is thereafter distributed.

e. Other equity items- exchange differences on translating the financial statements of foreign operations

Balance at January 1 Recognized for the year Exchange differences on translating the financial statements of foreign operations	For the Year Ended December 31
	2023 2022 $ (31,293) $ (44,054) - 44,673 (Continued)

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Share of exchange differences of subsidiaries using the equity method Income tax related to items that may be reclassified subsequently to profit or loss Reclassification adjustments Disposal of foreign operations Share from the disposal of subsidiaries accounted for using the equity method Income tax related to disposal of foreign operations Balance at December 31 Treasruy shares Balance as of January 1, 2023 and December 31, 2023 Balance as of December 31 2022 and December 31, 2022	For the Year Ended December 31	For the Year Ended December 31
	2023 2022 $ - $ (28,722) - (3,190) (22,811) - 54,124 - (20) - $ - $ (31,293) (Concluded) Shares transferred to employees
	In Thousands of shares 740 740	Amount $ 11,780 $ 11,780

f. Treasruy shares

Under the Securities and Exchange Act, the Company shall neither pledge treasury shares nor exercise shareholders’ rights on these shares, such as the rights to dividends and to vote.

20. REVENUE

Revenue from contracts with customers Revenue from sale of goods Income from processing Income from sales of electricity	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2023 $ 1,203,837 318 5,012 $ 1,209,167	2022 $ 1,330,231 17,411 1,330 $ 1,348,972

a. Refer to Note 4 (k) for information related to contracts with customers and refer to Statement 13 for the disaggregation of revenue from contracts with customers.
b. Contract balances

December 31, 2023 December 31, 2022 Notes receivable and Accounts Receivables (Note 8) $ 205,139 $ 215,928 Contract liabilities - current Sale of goods $ 7,885 $ 18,387	January 1, 2022 $ 317,294 $ 4,494

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The changes in the balance of contract assets and contract liabilities primarily result from the timing difference between the Company’s satisfaction of performance obligations and the respective customer’s payment There were no significant changes for the years ended December 31, 2023 and 2022.

Revenue in the current year that was recognized from the contract liability balance at the beginning of the year was summarized as follows:

From contract liabilities at the start of the year Sale of goods	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2023 $ 10,199	2022 $ 3,682

21. NET PROFIT

The details of net profit were as follows:

a. Other gains and losses

Net gain on disposal of property, plant and equipment (Note 26) Net foreign exchange gain Grants Compensation proceeds Loss on disposal of investments (Note 11) Others	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2023 $ 3,145 2,776 5,860 671 (55,924) 5,438 $ (38,034)	2022 $ 4,496 63,681 603 - - 2,827 $ 71,607

b. Finance costs

Interest on borrowings Interest on lease liabilities Less: Amount included in cost of qualifying assets Information on capitalized interest is as follows: Amount of capitalized interest Capitalized rate (%)	For the Year Ended December 31
	2023 2022 $ 10,566 $ 12,681 70 50 234 390 $ 10,402 $ 12,341 For the Year Ended December 31
	2023 2022 $ 234 $ 390 1.54-1.96 0.90-1.61

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c. Depreciation and amortization

Property, plant and equipment Right-of-use assets Intangible assets An analysis of depreciation by function Operating costs Operating expenses An analysis of amortization by function Operating cost Operating expenses d. Employee benefits expense Short-term employee benefits Post-employment benefits Defined contribution plans Defined benefit plans (Note 18) An analysis by function Operating cost Operating expenses	For the Year Ended	For the Year Ended	December 31
	2023 $ 79,962 2,340 4,614 $ 86,916 $ 69,944 12,358 $ 82,302 $ 845 3,769 $ 4,614 For the Year Ended		2022 $ 87,021 1,654 5,349 $ 94,024 $ 76,579 12,096 $ 88,675 $ 878 4,471 $ 5,349 December 31
		2023 $ 283,236 10,415 67 10,482 $ 293,718 $ 194,260 99,458 $ 293,718	2022 $ 300,009 11,600 68 11,668 $ 311,677 $ 216,570 95,107 $ 311,677

e. Compensation of employees and remuneration of directors

The Company accrued compensation of employees and remuneration of directors at rates no less than 3% and no higher than 5%, respectively, of net profit before income tax, compensation of employees, and remuneration of directors. The compensation of employees and remuneration of directors for the years ended December 31, 2023 and 2022, which were been approved by the Company’s board of directors in March 2024 and March 2023, respectively, were as follows:

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Accrual rate Employee remuneration (%) Director’s remuneration (%) Amount-Cash Employee remuneration Director’s remuneration	For the Year Ended December 31
	2023 2022 4.0 5.4 2.0 2.7 $ 14,812 $ 12,208 7,406 6,104

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

There is no difference between the actual amounts of compensation of employees and remuneration of directors and the amounts recognized in the parent company only financial statements for the years ended December 31, 2022 and 2021.

Information on the compensation of employees 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.

f. Net foreign exchange gain (loss)

Total foreign exchange gain Total foreign exchange loss Net foreign exchange gain	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2023 $ 39,055 (36,279) $ 2,776	2022 $ 90,713 (27,032) $ 63,681

22. INCOME TAX

a. Income tax recognized in profit and loss

Major components of income tax expense were as follows:

Current tax In respect of the current year Income tax on unappropriated earnings Adjustments for prior years Deferred tax In respect of the current year Income tax expense recognized in profit or loss	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2023 $ 76,855 1,531 (1,109) 77,277 (3,258) $ 74,019	2022 $ 41,276 - 555 41,831 536 $ 42,367

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The reconciliation of accounting profit and income tax expense is as follows:

Profit before tax Income tax expense calculated at the statutory rate Income included for tax Tax-exempt income Income tax on unappropriated earnings Adjustments for prior years Income tax expenses recognized in profit or loss	For the Year Ended	For the Year Ended	December 31
		2023 $ 347,753 $ 69,551 4,047 (1) 1,531 (1,109) $ 74,019	2022 $ 207,757 $ 41,551 270 (9) - 555 $ 42,367

b. Income tax benefit (expense) recognized in other comprehensive income

Deferred tax In respect of the current year Translation of foreign operations Share of other comprehensive income of subsidiaries using the equity method Remeasurement of defined benefit plans c. Current tax assets and liabilities Current tax assets Tax refund receivable Current tax liabilities Income tax payable	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2023 $ (5,735) 5,715 148 $ (128) December	2022 $ (8,935) 5,745 (516) $ (3,706) 31
		2023 $ 937 $ 78,158	2022 $ 431 $ 41,012

d. Deferred tax assets and liabilities

The movements of deferred tax assets and liabilities were as follows:

For the year ended December 31, 2023

			Recognized in	Recognized in
				Other
			Comprehensive
	Opening	Recognized in	Income and
	Balance	Profit or Loss		Loss	Closing Balance
Deferred tax assets
Temporary differences
Unrealized inventory loss	$ 28,810	$ (4,499)	$	-	$ 24,311
Unrealized exchange loss	-	1,764		-	1,764
					(Continued)

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					Recognized in	Recognized in
						Other
					Comprehensive
	Opening		Recognized in		Income and
	Balance		Profit or Loss			Loss	Closing Balance
Exchange differences on
translating the financial
statements of foreign
operations	$	5,735	$	-	$	(5,735)	$	-
Others		5,190		1,403		148		6,741
	$	39,735	$	(1,332)	$	_(5,587)	$	32,816
Deferred tax liabilities
Temporary differences
Share of profit of subsidiaries
using the equity method	$	2,631	$	(2,631)	$	-	$	-
Unrealized exchange gain		1,959		(1,959)		-		-
Share of other comprehensive
income of subsidiaries using
the equity method		5,715		-		(5,715)		-
Others
	$	10,305	$	(4,590)	$	(5,715)	$	-
							(Concluded)
For the year ended December 31, 2022
					Recognized in
						Other
					Comprehensive
	Opening		Recognized in		Income and
	Balance		Profit or Loss			Loss	Closing Balance
Deferred tax assets
Temporary differences
Unrealized inventory loss	$	29,675	$	(865)	$	-	$	28,810
Unrealized exchange loss		2,610		(2,610)		-		-
Share of other comprehensive
income of subsidiaries using
the equity method		(11,460)		-		11,460		-
Exchange differences on
translating the financial
statements of foreign		14,670		-		(8,935)		5,735
Others		5,196		510		(516)		5,190
		40,691		(2,965)		2,009		39,735
Loss carryforwards		4,075		(4,075)		-		-
	$	44,766	$	(7,040)	$	2,009	$	39,735
							(Continued)

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Deferred tax liabilities Temporary differences Share of profit of subsidiaries using the equity method Unrealized exchange gain Share of other comprehensive income of subsidiaries using the equity method Others	Opening Balance Recognized in Profit or Loss Recognized in Other Comprehensive Income and Loss Closing Balance $ 10,708 $ (8,077) $ - $ 2,631 - 1,959 - 1,959 - - 5,715 5,715 386 (386) - - $ 11,094 $ (6,504) $ 5,715 $ 10,305

(Concluded)

e. Income tax assessments

The income tax returns of the Company through 2021 have been assessed by the tax authorities.

23. EARNINGS PER SHARE (EPS)

Earnings and weighted average number of ordinary shares outstanding used in the computation of EPS were as follows:

a. Net profit for the year

Net profit used in the computation of basic and diluted EPS	For the Year Ended	For the Year Ended	December 31
		2023 $ 273,734	2022 $ 165,390

b. Weighted average number of ordinary shares outstanding (in thousands)

Weighted average number of ordinary shares used in the computation of basic EPS Effect of potentially dilutive shares Compensation of employees Weighted average number of ordinary shares used in the computation of diluted EPS	For the Year Ended	For the Year Ended	December 31
		2023 102,347 557 102,904	2022 102,347 560 102,907

The Company may settle the compensation of employees in cash or shares; thus, the Company assumes 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 EPS, as the effect is dilutive. Such dilutive effect of the potential shares is included in the computation of diluted EPS until the number of shares to be distributed to employees is resolved in the following year.

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24. CAPITAL MANAGEMENT

The Company manages its capital to ensure that entities in the Group will be able to continue as going concerns while maximizing the return to shareholders through the optimization of the debt and equity balance. The Company’s overall strategy remains unchanged from the last 2 years.

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

25. FINANCIAL INSTRUMENTS

a. Fair values of financial instruments not measured at fair value

The Company’s management considers that the carrying amounts of financial assets and financial liabilities that are not measured at fair value approximate their fair values.

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

Fair value hierarchy

December 31, 2023 Financial assets at FVTPL Domestic listed stocks December 31, 2022 Financial assets at FVTPL Domestic listed stocks	Level 1 $ 485 $ 443	Level 2 $ - $ -	Level 3 $ - $ -	Total $ 485 $ 443

There were no transfers between Level 1 and Level 2 for the years ended December 31, 2023 and 2022.

c. Categories of financial instruments

Financial assets FVTPL Mandatorily classified at FVTPL Financial assets at amortized cost (Note 1) Financial liabilities Measured at amortized cost (Note 2)	December 31
	2023 2022 $ 485 $ 443 1,078,530 660,125 653,070 1,027,971

Note 1: Including cash and cash equivalents, notes receivable, accounts receivable (including related parties), other receivables (including related parties), other financial assets, etc.
Note 2: Including short-term borrowings, notes payable, accounts payable (including related parties), other payables, long-term borrowings (including current portion), etc.
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d. Financial risk management objectives and policies

The Company’s major financial instruments include note receivable and accounts receivable, other financial assets, notes payable, accounts payable, borrowings and lease liabilities. The Company’s corporate treasury function provides services to the business, coordinates access to financial markets, monitors and manages the financial risks relating to the operations of the Company through internal risk reports, which analyze exposures by degree and magnitude of risks. These risks include market risk (including foreign currency risk and interest rate risk), credit risk and liquidity risk.

The treasury function reports quarterly to the Company’s managements.

1) Market risk

The Company’s activities expose it primarily to the financial risk of change in foreign currency exchange rate.

a) Foreign currency risk

The Company had foreign currency trades, which exposed the Company to foreign currency risk, and the carrying amounts of the Company’s foreign currency-denominated monetary assets and monetary liabilities at the end of the reporting period are set out in Note 29.

Sensitivity analysis

The Company was mainly exposed to the USD.

The following table details the Company’s sensitivity to a 1% increase and decrease in the New Taiwan dollar (the function currency) against the relevant foreign currencies. 1% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents mangement’s assessment of the reasonably possible change in the foreign exchange rate. The sensitivity analysis included only the outstanding foreign currency-denominated monetary items and their adjusted translation at the end of the reporting period for a 1% change in foreign currency rates. The scope of the sensitivity analysis includes bank deposits, accounts receivable, and accounts payable. A positive number below indicates an increase in pre-tax profit associated with New Taiwan dollars weakening 1% against the relevant currnecy. For a 1% strengthening of New Taiwan dollars against the relevant currency, there would be an equal and opposite impact on pre-tax profit, and the balances below would be negative.

Profit or loss	Influence of USD
	For the Year Ended December 31
	2023 2022 $ 3,789 $ 4,516

b) Interest rate risk

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

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Fair value interest rate risk Financial assets Financial liabilities Cash flow interest rate risk Financial assets Financial liabilities	December 31 2023 2022 $ 500 $ 500 5,690 3,909 865,686 312,071 390,536 728,789

Sensitivity analysis

The sensitivity analysis below shows the Company’s exposure to interest rates for non-derivative instruments at the end of the reporting period. For floating-rate liabilities, the analysis was prepared assuming the amount of the liabilities outstanding at the end of the reporting period was outstanding for the whole year.

If interest rates had been 1% higher/lower and all other variables were held constant, the Company’s pre-tax profit for the years ended December 31, 2023 and 2022 would have increased/decreased by $4,752 thousand and would have decreased/increased by $4,167 thousand, respectively, which was mainly attributable to the Company’s exposure to interest rates on its variable-rate deposits and 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 Company. At the end of the year, the Company’s maximum exposure to credit risk, which would cause a financial loss to the Company due to the failure of the counterparty to discharge its obligation, could be equal to the total of the carrying amount of the respective recognized financial assets as stated in the balance sheets.

The Company adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults. The Company is continuously monitoring and spreading the aggregate transactions to each credit – qualified counterparty. Credit exposure is controlled by counterpart limits that are reviewed and approved by the Company annually.

The Company is exposed to credit risk from a relatively concentrated number of customers who mostly engage in similar business activities with similar economic characteristics. Credit risk concentration occurs when the impact of the economy and other factors on customers’ abilities to fulfill their contract obligations is also similar. The accounts receivable balances of customers with credit risk concentration were as follows:

Company A Company B Group C Company D Company E		December 31	December 31
		2023 $ 34,843 26,116 29,019 22,859 25,864 $ 138,701	2022 $ 11,836 44,111 38,655 23,640 13,551 $ 131,793

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3) Liquidity risk

The ultimate responsibility for the Company’s liquidity risk management lies with the board of directors, which has established an appropriate liquidity risk management framework to meet the Company’s financing and liquidity management needs.

Liquidity and interest rate risk tables

The following table details the Company’s remaining maturities for non-derivative financial liabilities with agreed-upon repayment periods. The table has been drawn up based on the undiscounted cash flows of financial liabilities from the earliest date on which the Company can be required to pay and includes cash flows of the interests and principal.

Repayment on Demand or Less than 1 Month December31,2023 Non-derivative financial liabilities Variable interest rate liabilities $ - Lease liabilities 276 Non-interest-bearing liabilities 59,743 $ 60,019 December31,2022 Non-derivative financial liabilities Variable interest rate liabilities $ - Lease liabilities 156 Non-interest-bearing liabilities 75,924 $ 76,080	1-3 Months $ 40,195 551 180,462 $ 221,208 $ 133,932 311 204,827 $ 339,070	3 Months-1 Years $ 95,017 2,231 22,329 $ 119,577 $ 109,050 1,401 18,431 $ 128,882	1-5 Years $ 272,537 2,849 - $ 275,386 $ 513,882 2,099 - $ 515,981

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

26. TRANSACTIONS WITH RELATED PARTIES

a. Related party name and category

Related Party

Relationship with the Company

Su, Chi-Tse Sun Forging Industrial Co., Ltd. (Sun)

Chairman Related party in substance

(Continued)

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Related Party Relationship with the Company

Jin Shiang Forging Co., Ltd. (Jin Shiang) Related party in substance Linesoon Industrial Co., Ltd. (Linesoon) Related party in substance Wuxi Tsang Yow Auto Parts Co., Ltd. (Wuxi Tsang Yow) Subsidiary (until July, 2023) Business Subsidiary (until Novermber, 2023) Giant Subsidiary (until December, 2023) AAI Subsidiary (until December, 2023) (Concluded)

b. Operating revenues

Line Item Related Party Category/Name Operating revenue Subsidiary - Wuxi Tsang Yow Related party in substance	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2023 $ 16,091 3,814 $ 19,905	2022 $ 1,337 3,250 $ 4,587

The amount of unrealized gain on transactions with subsidiaries was $3,107 thousand as of December 31, 2022.

The Company did not sell similar goods to non-related parties, so there was no transaction price of the same kind available for comparison The payment term is not significantly different from that for non-related parties, which is net 30-140 days at the end of each month.

c. Purchase of goods

Related Party Category/Name Subsidiary - Wuxi Tsang Yow Related party in substance	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2023 $ 2,286 34,380 $ 36,666	2022 $ 2,047 40,613 $ 42,660

The Company did not buy the same kind of goods from non-related parties, so there was no related transaction price available for comparison. The payment term is same as that for non-related parties, which is net 60 to 140 days at the end of each month.

d. Receivables from related parties and Payables to related parties (excluding loan to and loan from related parties)

Balance on the balance sheet date were as follows:

Line Item Related Party Category/Name Accounts receivable - related parties Related party in substance		December	31
		2023 $ 553	2022 $ 1,965

(Continued)

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Line Item Related Party Category/Name Accounts payable - related Subsidiary - Wuxi Tsang Yow parties Related party in substance Other receivables - related parties (interest) Subsidiary Other payable Subsidiary		December	31
		2023 $ - 12,499 $ 12,499 $ - $ 364	2022 $ 1,673 10,017 $ 11,690 $ 182 $ 182 (Concluded)

The outstanding payables to related parties are unsecured and will be settled in cash. The outstanding receivable from related parties are unsecured. For the years ended December 13, 2023 and 2022, no impairment losses were recognized for receivables from related parties.

e. Loans to related parties - only December 31, 2022

Related Party Category/Name Subsidiary - Giant Subsidiary - Wuxi Tsang Yow Interest income Related Party Category/Name Subsidiary	December 31, 2022 $ 76,652 30,710 $ 107,362 For the Year Ended December 31	December 31, 2022 $ 76,652 30,710 $ 107,362 For the Year Ended December 31	December 31, 2022 $ 76,652 30,710 $ 107,362 For the Year Ended December 31
		2023 $ 230	2022 $ 1,735

The company provided subsidiaries with unsecured short-term loans at December 31,2023 and 2022.In addition to the interest-free to the subsidiary-Ginat, the annual interest rate for the loan to the subsidiary Wuxi Tsang Yow is 5%, but it has been adjusted to 3.5% since November 2022.

f. Disposal of property, plant and equipment

Related Party Category/Name Related party in substance Subsidiary		Proceeds For the Year Ended December 31 2023 2022 $ 781 $ - - 12,494 $ 781 $ 12,494		Gain(Loss) on Disposal	Gain(Loss) on Disposal
				For the Year Ended December 31
		2023 $ 781 - $ 781		2023 $ 781 - $ 781	2022 $ - 7,240 $ 7,240

g. Remuneration of key management personnel

The amounts of the remuneration of directors and other members of key management personnel were as follows:

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Short-term employee benefits Post-employment benefits	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2023 $ 27,659 385 $ 28,044	2022 $ 25,572 378 $ 25,950

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

h. Guarantee

Part of the Company’s financial loan facilities are jointly guaranteed by the chairman.

Related Party Category/Name Chairman Amount guaranteed Less: Amount utilized		December 31	December 31
		2023 $ 1,055,000 151,948 $ 903,052	2022 $ 1,055,000 350,396 $ 704,604

27. ASSETS PLEDGED AS COLLATERAL

The Company provided the following assets as collateral for borrowings and tariff guarantee for imported raw material:

Property, plant and equipment Other financial assets (current and non-current)		December 31	December 31
		2023 $ 674,953 10,181 $ 685,134	2022 $ 686,070 10,140 $ 696,210

28. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

Significant commitments of the Company as of December 31, 2023 and 2022 were as follows:

As of December 31, 2023 and 2022, the unrecognized commitments for acquisition of property, plant and equipment were $16,205 thousand and $5,865 thousand, respectively.

29. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCY

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

47 -

		Foreign
	Currency				Carrying
		Amount	Exchange Rate		Amount
December 31, 2023
Financial assets
Monetary items
USD	$	12,370	30.705	(USD:NTD)	$ 379,821
Financial liabilities
Monetary items
USD		31	30.705	(USD:NTD)	952
December31,2022
Financial assets
Monetary items
USD		14,790	30.71	(USD:NTD)	454,201
Nonmonetary items
Investments accounted for using
the equity method
USD		14,908	30.71	(HKD:NTD)	454,426
Financial liabilities
Monetary items
USD		84	30.71	(USD:NTD)	2,580

The significant unrealized foreign exchange gains (losses) were as follows:

				Net exchange
	Foreign currency	Exchange rate		gain (loss)
2023
USD		30.705	(USD:NTD)	$ (5,798)
2022
USD		30.71	(USD:NTD)	$ 8,136

30. SEPARATELY DISCLOSED ITEMS

a. Information on significant transactions and b. information on investees:
1) Financing provided to others: Table 1
2) Endorsements/guarantees provided: Table 2
3) Marketable securities held: Table 3
4) Marketable securities acquired or disposed of at costs or prices of at least NT$300 million or 20% of the paid-in capital: None
48 -
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 individual real estate at prices of at least NT$300 million or 20% of the paid-in capital: None
7) Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital: None
8) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital: None
9) Trading in derivative instruments: None
10) 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 area, and their prices, payment terms, and unrealized gains or losses:
- a) The amount and percentage of purchases and the balance and percentage of the related payables at the end of the period: Table 6
- b) The amount and percentage of sales and the balance and percentage of the related receivables at the end of the period: Table 6
- c) The amount of property transactions and the amount of the resultant gains or losses: None
- d) The balance of negotiable instrument endorsements or guarantees or pledges of collateral at the end of the year and the purposes: None
- e) The highest balance, the end of year balance, the interest rate range, and total current year interest with respect to financing of funds: Table 1
- f) Other transactions that have a material effect on the profit or loss for the year or on the financial position, such as the rendering or receipt of services: None
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: Table 7.
49 -

TABLE 1

Tsang Yow Industrial Co., Ltd and Its Subsidiaries

FINANCING PROVIDED TO OTHERS FOR THE YEAR ENDED DECEMBER 31, 2023 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

No.	Lender	Borrower	Financial Statement Account	Related Party	Highest Balance for the Period	Ending Balance	Actual Amount Borrowed	Interest Rate(%)	Nature of Financing	Business Transaction Amount	Reasons for Short-Term Financing	Allowance for Impairment Loss	Colla	teral	Financing Limit for Each Borrower (Note 2)	Aggregate Financing Limit (Note 2)
													Item	Value
0 0 1 2	The Company The Company Giant Business	Giant Wuxi Tsang Yow Wuxi Tsang Yow Wuxi Tsang Yow	Other receivables - related party Other receivables - related party Other receivables - related party Other receivables - related party	Y Y Y Y	$ 122,820 ( USD 4,000 ) 92,115 ( USD 3,000 ) 39,917 ( USD 1,300 ) 92,115 ( USD 3,000 )	$ - - - -	$ - - - -	- 3.5 3.5 3.5	Note 1 Note 1 Note 1 Note 1	$ - - - -	Short-term operating capital turnover Short-term operating capital turnover Short-term operating capital turnover Short-term operating capital turnover	$ - - - -	- - - -	$ - - - -	$ 732,081 732,081 - -	$ 732,081 732,081 - -

Note 1: There is need for short-term financial.

Note 2: 1. The Company

The total limit of loans to others shall be 40% of the Company’s net shareholder’s equity; the limit of loans to an affiliate shall not exceed 40% of the Company’s net worth; the limit of loans to an enterprise shall not exceed 10% of the Company’s non-shareholder’s equity.

Giant, Business (the settlement has been liquidated from November to December 2023)

The total limit of loans to others shall be 40% of its net shareholder’s equity; the limit of loans to an affiliate shall not exceed 40% of its net worth; the limit of loans to an enterprise shall not exceed 20% of its net shareholder’s equity.

50 -

TABLE 2

Tsang Yow Industrial Co., Ltd and Its Subsidiaries

ENDORSEMENTS/GUARANTEES PROVIDED FOR THE YEAR ENDED DECEMBER 31, 2023

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

No.	Endorser/Guarantor	Endorse	e/Guarantee	Limit on Endorsement /Guarantee Given on Behalf of Each Party (Note)	Maximum Amount Endorsed /Guaranteed During the Year	Outstanding Endorsement /Guarantee at the End of the Year	Actual Amount Borrowed	Amount Endorsed/ Guaranteed by Collateral	Ratio of Accumulated Endorsement/ Guarantee to Net Equity in Latest Financial Statements (%)	Aggregate Endorsement/ Guarantee Limit (Note)	Endorsement/ Guarantee Given by Parent on Behalf of Subsidiaries	Endorsement/ Guarantee Given by Subsidiaries on Behalf of Parent	Endorsement/ Guarantee Given on Behalf of Companies in Mainland China
		Name	Relationship
0	The Company	Wuxi Tsang Yow	Subsidiary	$ 878,497	$ 92,115 ( USD 3,000 )	$ -	$ -	$ -	-	$ 1,464,162	Y	N	Y

Note: The limit on endorsement/guarantee given on behalf of a single overseas enterprise shall not exceed 60% of the equity of the Company. The maximum total amount of endorsement/guarantee shall not exceed 80% of the equity of the Company.

51 -

TABLE 3

Tsang Yow Industrial Co., Ltd and Its Subsidiaries

MARKETABLE SECURITIES HELD DECEMBER 31, 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		December 31, 2023	December 31, 2023	December 31, 2023	December 31, 2023	Note
				Number of Shares	Carrying Amount		Percentage of Ownership (%)	Fair Value
The Company	Stock Highwealth Construction Corp.	-	Financial assets at FVTPL - current	13,311		$ 485	-	$ 485

52 -

TABLE 4

Tsang Yow Industrial Co., Ltd and Its Subsidiaries

INFORMATION ON INVESTEES FOR THE YEAR ENDED DECEMBER 31, 2023 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Company Name	Investee Company	Location	Main Businesses and Products	Original Inves	tment Amount	As	of Decemb	er 31, 2023	Income (Loss) of the Investee	e of Profit (Loss)	Note
						Number of Shares	%	Carrying Amount
				December 31, 2023	December 31, 2022
The Company Giant	Giant AAI YORU Tech SDN. BHD. Business	Samoa British Virgin Island Malaysia Samoa	Reinvestment and interactional trading Reinvestment and interactional trading Manufacturing and selling of semiconductor and medical-related components Reinvestment and interactional trading	$ - - - -	$ 449,023 1,621 - 463,429	- - - -	- - 55 -	$ - - - -	$ 154,490 1,179 $ 155,669 $ - $ 169,653	$ 154,794 1,179 $ 155,973 $ - $ 169,653	Notes 1 and 2 Note 2 Note 3 Note 2

Note 1: Unrealized gross losses have been realized.

Note 2: It was written off when the consolidated financial statements were prepared.

Note 3: The company was established and registered in September 2023 and its the capital was not verified at the end of the year.

53 -

TABLE 5

Tsang Yow Industrial Co., Ltd and Its Subsidiaries

INFORMATION ON INVESTMENTS IN MAINLAND CHINA FOR THE YEAR ENDED DECEMBER 31, 2023 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Investee Company	Main Businesses and Products	Main Businesses and Products	Paid-in Capital	Method of Investment	Method of Investment	Accumulated Outward Remittance for Investment from Taiwan as of January 1, 2023	Remittanc	e of Funds	Accumulated Outward Remittance for Investment from Taiwan as of December 31, 2023	Net Income (Loss) of the Investee	% Ownership of Direct or Indirect Investment	Investment Gain (Loss) `（`Note 3`）`	Carrying Amount as of December 31, 2023 `（`Note 3`）`	Accumulated Repatriation of Investment Income as of December 31, 2023	Note
							Outward	Inward
Wuxi Tsang Yow	Research and development, design, and production of transmissions and accessories; hardware parts; sales of self-produced products; and provision of after sales services		$ 392,246 ( USD 12,000 )	Indirectly investment in mainland China through companies registered in the third area		$ 293,538 ( USD 9,043 )	$ -	$ 293,538 ( USD 9,043 )	$ -	$ (46,056 )	-	$ (45,752 )	$ -	$ 493,073	Note 4

Investor		Accumulated Outward Remittance for Investment in Mainland China as of December 31, 2023			Investment Amount Authorized by the Investment Commission, MOEA			Upper Limit on the Amount of Investment Stipulated by Investment Commission, MOEA (Notes 1 and 2)
The Company		$ -			$ 467,399 ( USD 14,484 )			$ 1,098,121

Note 1: The limit of Company’s investment in China is as follows: $1,830,202×60% ＝ $1,098,121

Note 2: As per the Principles for the Review of Investments or Technical Cooperation in the mainland China stipulated by the Investment Commission dated August 29, 2008, if the paid-in capital is NT$80 million or more, the limit is 60% of the net worth.

Note 3: Recognized based on the audited financial reports of the investee company by the Company's certified public accountant for the same period.

Note 4: The Company signed a sale-of-share agreement with unrelated parties on May 31, 2023. The sale plan was completed with the equity transfer and change of registration in July 2023.

54 -

TABLE 6

Tsang Yow Industrial Co., Ltd and Its Subsidiaries

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

FOR THE YEAR ENDED DECEMBER 31, 2023

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

Investee Company	Relations Between The Company and Counterparty	Transaction Type	Amount	Payment Terms	Transacti	on Details	Notes/Accounts Recei	vable (Payable)	Unrealized (Gain) Loss
					Unit Price	Comparison with Normal Transactions	Ending Balance	%
Wuxi Tsang Yow	Subsidiary	Sales Purchase	$ 16,091 2,286	T/T 140 days T/T 60 days	General Transactions General Transactions	General Transactions General Transactions	$ - -	- -	$ - -

55 -

TABLE 7

Tsang Yow Industrial Co., Ltd and Its Subsidiaries

INFORMATION OF MAJOR SHAREHOLDERS DECEMBER 31, 2023

Name of Major Shareholder	Shares	Shares
	Number of Shares	Percentage of Ownership (%)
Linesoon Investment Co., Ltd. Rich Pool Investment Co., Ltd. Golden Top Investment Co., Ltd.	19,955,314 7,961,779 7,427,058	19.35 7.72 7.20

Note: The information of major shareholders presented in this table is provided by the Taiwan Depository & Clearing Corporation based on the number of ordinary shares held by shareholders with ownership of 5% or greater, that have been issued without physical registration by the Company as of the last business day for the current quarter. The share capital indicated in the Company’s parent company only financial statements may differ from the actual number of shares that have been issued and delivered with registration of dematerialized securities completed as a result of different bases of preparation.

56 -

THE CONTENTS OF STATEMENTS OF MAJOR ACCOUNTING ITEMS

ITEM

STATEMENT INDEX

MAJOR ACCOUNTING ITEMS IN ASSETS, LIABILITIES AND EQUITY STATEMENT OF CASH AND CASH EQUIVALENTS 1 STATEMENT OF ACCOUNTS RECEIVABLE 2 STATEMENT OF INVENTORIES 3 STATEMENT OF OTHER FINANCIAL ASSETS 4 STATEMENT OF OTHER CURRENT ASSETS Note 14 STATEMENT OF CHANGES IN INVESTMENTS 5 ACCOUNTED FOR USING THE EQUITY METHOD STATEMENT OF CHANGES IN PROPERTY, PLANT AND Note 12 EQUIPMENT STATEMENT OF CHANGES IN RIGHT-OF-USE ASSETS 6 STATEMENT OF CHANGES IN INTANGIBALE ASSETS 7 STATEMENT OF DEFERRED TAX ASSETS Note 22 STATEMENT OF OTHER NON-CURRENT ASSETS Note 14 STATEMENT OF NOTES PAYABLE 8 STATEMENT OF ACCOUNTS PAYABLE 9 STATEMENT OF OTHER PAYABLES Note 17 STATEMENT OF OTHER CURRENT LIABILITIES Note 17 STATEMENT OF LEASE LIABILITIES 10 STATEMENT OF DEFERRED TAX LIABILITIES Note 22 STATEMENT OF SORT-TERM BORROWINGS 11 STATEMENT OF LONG-TERM BORROWINGS 12 MAJOR ACCOUNTING ITEMS IN PROFIT OR LOSS STATEMENT OF NET OPERATING REVENUES 13 STATEMENT OF OPERATING COSTS 14 STATEMENT OF OPERATING EXPENSES 15 STATEMENT OF FINANCE COSTS Note 21 STATEMENT OF LABOR, DEPRECIATION, AND Note 21 and Statement 16 AMORTIZATION BY FUNCTION

57 -

STATEMENT 1

TSANG YOW INDUSTRIAL CO., LTD.

STATEMENT OF CASH AND CASH EQUIVALENTS DECEMBER 31, 2023 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Item Summary Cash on hand and working capital Including EUR 7 thousand, CNY 3 thousand, JPY 24 thousand, USD 5 thousand, MYR 9 thousand and NTD 111 thousand (Note 1) Band deposit Checking accounts Demand deposits Foreign currency deposits Including USD 637 thousand, EUR 151 thousand, JPY 90,997 thousand and CNY 564 thousand (Note 1) Cash equivalents Time deposits in bank (Note 2) Including USD 7,013 thousand and CNY 113,504 thousand (Note 1)	Amount $ 618
	3,626 101,718 46,900
	152,244
	707,387
	$ 860,249

Note 1: Exchange rate:

JPY1=NTD0.2172 EUR1=NTD33.98 RMB1=NTD4.3352 USD1=NTD30.705 MYR1=NTD6.41

Note 2: It is bank time deposits with original maturities of three months or less, all due in March 2024, with an annual rate of interest of 2.68%-5.65%.

58 -

STATEMENT 2

TSANG YOW INDUSTRIAL CO., LTD.

STATEMENT OF ACCOUNTS RECEIVABLE DECEMBER 31, 2023 (In Thousands of New Taiwan Dollars)

Client Name Related parties Other (Note) Non-related parties Company A Company B Company C Company D Company E Company F Other (Note) Less: Allowance for losses	Amount Over a Year Remark $ 553 $ - Sale of goods 34,843 - Sale of goods 29,019 - Sale of goods 26,099 17 Sale of goods 25,864 - Sale of goods 22,859 - Sale of goods 17,917 - Sale of goods 48,885 58 Sale of goods 205,486 75 900 75 204,586 $ - $ 205,139

Note: The amount of individual clients that are included in others does not exceed 5% of the account balauce.

59 -

STATEMENT 3

TSANG YOW INDUSTRIAL CO., LTD.

STATEMENT OF INVENTORIES DECEMBER 31, 2023 (In Thousands of New Taiwan Dollars)

Item Finished goods Work in process Raw materials Supplies		Amount
		Cost Net Realizable Value (Note) $ 181,041 $ 272,890 128,776 146,559 41,388 41,455 17,846 18,193 $ 369,051 $ 479,097

Note: See Note 4 “Accounting policies” for the net realized value.

60 -

STATEMENT 4

TSANG YOW INDUSTRIAL CO., LTD.

STATEMENT OF OTHER FINANCIAL ASSETS FOR THE YEAR ENDED DECEMBER 31, 2023 (In Thousands of New Taiwan Dollar, Unless Stated Otherwise)

Item Interest Rates for the year (%) Period Current Pledged Time deposits Cathay United Bank 3.05 2023.12.15-2024.01.15 Non-current Time deposits Taiwan Cooperative Bank (Note) 1.58 2023.10.15-2024.10.15 Refundable deposits	Amount $ 9,681 500 2,960 3,460 $ 13,141

Note: It is used as a guarantee for the tariff and will be automatically renewed when it matures.

61 -

STATEMENT 5

TSANG YOW INDUSTRIAL CO., LTD.

STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD FOR THE YEAR ENDED DECEMBER 31, 2023 (In Thousands of New Taiwan Dollar, Unless Stated Otherwise)

Name Giant AAI	Balance, January 1, 2023 Shares Amount 13,795,000 $ 422,736 50,000 31,690 $ 454,426	Additions in In	vestment Amount (Note) $ 151,673 1,158 $ 152,831	Decrease in In	vestment Amount $ 574,409 32,848 $ 607,257	Balance, December 31, 20	23 Amount $ - - $ -	Market Value or Ne	t Assets Value Total Amount Collateral $ - None - None $ -
						% of Shares Ownership - - - -		Unit Price (NT$) $ - -
	Shares 13,795,000 50,000	Shares - -		Shares 13,795,000 50,000

Note: It includes the share of profit of subsidiaries using the equity method of $155,972 thousand, a reduction of exchange differences on translating the financial statements of foreign operations of $6,248 thousand and realized profits from the subsidiary of $3,107 thousand.

62 -

STATEMENT 6

TSANG YOW INDUSTRIAL CO., LTD.

STATEMENT OF CHANGES IN RIGHT-OF-USE ASSETS DECEMBER 31, 2023 (In Thousands of New Taiwan Dollars)

Balance at January 1, 2023 Cost Transportation equipment $ 9,166 Accumulated depreciation Transportation equipment (5,280) $ 3,886	Additions Balance of December 31, 2023 $ 4,207 $ 13,373 (2,340) (7,620) $ 1,867 $ 5,753

63 -

STATEMENT 7

TSANG YOW INDUSTRIAL CO., LTD.

STATEMENT OF CHANGES IN INTANGIBLE ASSETS DECEMBER 31, 2023 (In Thousands of New Taiwan Dollars)

Items Balance at January 1, 2023 Computer software Cost $ 23,474 Accumulated amortization (14,280) $ 9,194	Additions Deductions Balance of December 31, 2023 $ 438 $ (1,484 ) $ 22,428 (4,614) 1,484 (17,410) $ (4,176) $ - $ 5,018

64 -

STATEMENT 8

TSANG YOW INDUSTRIAL CO., LTD.

STATEMENT OF NOTES PAYABLE DECEMBER 31, 2023 (In Thousands of New Taiwan Dollars)

Vendor Name Unrelated parties Company A Company B Company C Company D Company E Other (Note)	Amount $ 5,577 1,561 1,029 686 577 1,439 $ 10,869

Note: The amount of individual vendors that are included in others does not exceed 5% of the account balance.

65 -

STATEMENT 9

TSANG YOW INDUSTRIAL CO., LTD.

STATEMENT OF ACCOUNTS PAYABLE DECEMBER 31, 2023 (In Thousands of New Taiwan Dollars)

Vendor Name Related parties Jin Shiang Sun Linesoon Unrelated parties Company A Company B Company C Company D Company E Company F Others (Note)	Amount $ 6,268 5,653 578 12,499 14,323 12,462 9,491 6,728 6,004 6,001 78,347 133,356 $ 145,855

Note: The amount of individual vendors that are included in others does not exceed 5% of the account balance.

66 -

STATEMENT 10

TSANG YOW INDUSTRIAL CO., LTD.

STATEMENT OF LEASE LIABILITIES DECEMBER 31, 2023 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

		Discount Rate	Balance of
Item	Lease Term	(%)	December 31, 2023
Transportation equipment	2021.05-2026.10	1.37-1.84	$ 5,690
Less: Lease liabilities -			2,991
current
Lease liabilities - non-current			$ 2,699

67 -

STATEMENT 11

TSANG YOW INDUSTRIAL CO., LTD.

STATEMENT OF SHORT-TERM BORROWINGS DECEMBER 31, 2023

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

Item Unsecured borrowings E.SUN Bank	Ending Balance Period Rate of annual interest (%) Pledge/ Mortgage or Collateral $ 20,000 2023.12.28-2024.03.27 1.65 None

68 -

STATEMENT 12

TSANG YOW INDUSTRIAL CO., LTD.

STATEMENT OF LONG-TERM BORROWINGS FOR THE YEAR ENDED DECEMBER 31, 2023 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Contract Period and Interest Rate Bank Name Repayment Terms (%) Secured borrowings First Commercial Bank It is amortized every six months in 12 installments, starting in June 2020. 1.84 E.SUN Bank It is amortized in 156 monthly installments, starting in December 2020. 1.88 Mega international Commercial Bank It is amortized in 120 monthly installments, starting in December 2018. 1.85 The Shanghai Commercial & Saving Bank Ltd. It is amortized in 40 quarterly installments, starting in June 2018. 1.90 The Shanghai Commercial & Saving Bank Ltd. It began in August 2022 with a grace period of one year and is amortized in 16 quarterly installments, starting in November 2023. 1.90 Unsecured borrowings E.SUN Bank It is amortized in 36 monthly installments, starting in October 2021. 1.78 E.SUN Bank It is amortized in 36 monthly installments, starting in January 2023. 1.73		Balance, December 31, 2023	Total Collateral Remark $ 71,000 Land and buildings Note 27 81,848 Land and buildings Note 27 73,750 Land and buildings Note 27 76,364 Land and buildings Note 27 9,375 Land and buildings Note 27 27,945 None - 30,254 None - $ 370,536
		Current Non-current $ 20,000 $ 51,000 7,580 74,268 15,000 58,750 21,212 55,152 2,500 6,875 27,945 - 14,996 15,258 $ 109,233 $ 261,303

69 -

STATEMENT 13

TSANG YOW INDUSTRIAL CO., LTD.

STATEMENT OF NET OPERATING REVENUES FOR THE YEAR ENDED DECEMBER 31, 2023 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Item Quantities (In Thousands of PCS) Automatic transmission components for automobiles 2,356 Clutch parts for heavy-duty trucks 464 Drivetrain parts for industrial machinery 105 Net energy vehicle motor components 55 Other (Note) 176 Sales revenue, net Income from processing, net 3 Other operating revenue Net operating revenue	Amount $ 830,613 132,088 61,509 39,548 140,079 1,203,837 318 5,012 $ 1,209,167

Note: Each balance did not exceed 10% of the balance of this account.

70 -

STATEMENT 14

TSANG YOW INDUSTRIAL CO., LTD.

STATEMENT OF OPERATING COSTS FOR THE YEAR ENDED DECEMBER 31, 2023 (In Thousands of New Taiwan Dollars)

Item
Raw materials at the beginning of the year

Purchases during this year
Less: Raw materials at the end of the year

Consumption of raw materials
Consumption of supplies
Direct labor
Overhead

Manufacturing cost
Add: Work in process at the beginning of the year
Less: Work in process at the end of the year

Cost of finished goods
Add: Finished goods at the beginning of the year
Purchase during this year
Less: Finished goods at the end of the year
Reclassified to operating expenses
Reclassified to other assets
Loss on obsolete inventory
Add: Gain on physical inventory
Others

Cost of production
Loss on obsolete inventory
Gain on physical inventory
Income from sales of scrap

Cost of goods sold
Other operating costs

Amount
$ 63,645
260,531
(41,388)
282,788
63,688
147,819
287,829
782,124
140,009
(128,776)
793,357
201,459
16,271
(181,041 )
(2,355 )
(8,124 )
(5,183 )
541
663
815,588
5,183
(541 )
(10,570)
809,660
2,005
$ 811,665

71 -

STATEMENT 15

TSANG YOW INDUSTRIAL CO., LTD.

STATEMENT OF OPERATING EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2023 (In Thousands of New Taiwan Dollars)

Item Salary and wages Travel expense Import/export expense Depreciation expense Service expense Insurance Others (Note) Expected credit loss reversed on accounts receivable	Selling and Marketing Expenses General and Administrative Expenses Research and Developments Expenses $ 10,007 $ 45,200 $ 31,398 2,414 647 630 18,043 - - 1,877 6,589 3,892 103 6,998 499 2,475 3,205 3,040 7,443 16,264 7,643 $ 42,362 $ 78,903 $ 47,102	Total $ 86,605 3,691 18,043 12,358 7,600 8,720 31,350 168,367 (754) $ 167,613

Note: Each balance did not exceed 5% of the balance of this account.

72 -

STATEMENT 16

TSANG YOW INDUSTRIAL CO., LTD.

STATEMENT OF LABOR, DEPRECIATION AND AMORTIZATION BY FUNCTION FOR THE YEARS ENDED DECEMBER 31, 2023 and 2022 (In Thousands of New Taiwan Dollars)

Employee benefit Salaries Labor and health insurance Pension Remuneration of directors Other Depreciation Amortization			For	the Year Ended December 31	the Year Ended December 31	the Year Ended December 31
			2023	Total $ 232,538 24,593 10,482 12,872 13,233 $ 293,718 $ 82,302 4,614			2022
		Operating Cost $ 158,805 17,845 7,309 - 10,301 $ 194,260 $ 69,944 845	Operating Expense $ 73,733 6,748 3,173 12,872 2,932 $ 99,458 $ 12,358 3,769			Operating Cost $ 176,760 20,075 8,489 - 11,246 $ 216,570 $ 76,579 878	Operating Expense $ 70,551 6,425 3,179 12,009 2,943 $ 95,107 $ 12,096 4,471	Total $ 247,311 26,500 11,668 12,009 14,189 $ 311,677 $ 88,675 5,349

Note : 1. The average number of the Company’s employees was 384 and 424, including 8 non-employee directors in 2023 and 2022, respectively.
The average employee benefits for the years ended December 31, 2023 and 2022 was $747 thousand and $720 thousand, respectively.
The average salaries for the years ended December 31, 2023 and 2022 was $618 thousand and $594 thousand, respectively.
The average salaries increased by 4% year-on-year.
The Company has established an audit committee to replace supervisors, so it has no remenuration for supervisors.
The Company’s salary and remuneration policies (including directors, executive officers and employees) are as follows:

Compensation is provided based on comprehensive considerations to ensure fair remuneration, with periodic reviews and adjustments made in accordance with actual operating conditions and relevant regulations for directors, executives, and employees. The compensation committee references the overall competitiveness of the compensation market, regularly reviewing and evaluating the compensation policies, systems, standards, and structures for directors and executives. In addition, in accordance with the company's articles of association, if the company generates profits in a fiscal year, a minimum of 3% of the profits must be allocated for employee compensation. The distribution of this allocation is subject to approval by the board of directors.

73 -

Furthermore, up to 5% of the profits may be allocated for director compensation, which must be reviewed by the compensation committee and approved by both the board of directors and shareholders before distribution. The compensation for the Chairman and independent directors, who participate in the operation, is set at a fixed monthly amount. Additionally, directors receive an attendance fee of 3,000 yuan for each board meeting they attend. The compensation for directors and executives is determined through review by the compensation committee and approval by the board of directors.

74 -

Current Excess business tax paid Prepaid expenses Prepayments to supplies Other Non-current Prepayment for investment (Note 11) Other BORROWINGS a. Short-term borrowings Unsecured borrowings The annual interest rates of short-term borrowings were as follows: Unsecured borrowings in bank (%) b. Long-term borrowings Secured borrowings (Note 27) Unsecured borrowings Less: Current portion Long-term borrowings		December	31
		2023 $ 3,974 3,339 878 2,507 $ 10,698 $ 3,972 592 $ 4,564 December	2022 $ 4,695 2,335 1,000 2,474 $ 10,504 $ - 592 $ 592 31
		2023 $ 20,000 December	2022 $ 100,000 31
		2023 1.65 December	2022 1.40-1.55 31
		2023 $ 312,337 58,199 370,536 109,233 $ 261,303	2022 $ 467,143 161,646 628,789 133,611 $ 495,178

AI assistant

T.Y. — Audit Report / Information 2023

51867_rns_2023-11-13_e77ce54d-b38f-4b17-aec9-849f9a496de6.pdf

Tsang Yow Industrial Co., Ltd.

INDEPENDENT AUDITORS’ REPORT

Opinion

Basis for Opinion

Key Audit Matters

Occurrence of revenue from consignment warehouses

Responsibilities of Management and Those Charged with Governance for the Parent Company Only Financial Statements

Auditors’ Responsibilities for the Audit of the Parent Company Only Financial Statements

Notice to Readers

Tsang Yow Industrial Co., Ltd.

PARENT COMPANY ONLY BALANCE SHEETS

(In Thousands of New Taiwan Dollars)

Tsang Yow Industrial Co., Ltd.

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

Tsang Yow Industrial Co., Ltd.

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

Tsang Yow Industrial Co., Ltd.

PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022 (In Thousands of New Taiwan Dollars)

Tsang Yow Industrial Co., Ltd.

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars)

Tsang Yow Industrial Co., Ltd.

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars)

Tsang Yow Industrial Co., Ltd.

1. GENERAL INFORMATION

2. APPROVAL OF FINANCIAL STATEMENTS

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

4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

2) Equity instruments

k. Revenue recognition

l. Leases

The Company as a lessee

m. Borrowing Costs

n. Government grants

o. Employee benefits

1) Short-term employee benefits

1) Current tax

5. MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

6. CASH AND CASH EQUIVALENTS

7. FINANCIAL INSTRUMENTS AT FVTPL

8. NOTES RECEIVABLE AND ACCOUNTS RECEIVABLE, NET

December 31, 2023

9. INVENTORIES

10. OTHER FINANCIAL ASSETS

11. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

12. PROPERTY, PLANT AND EQUIPMENT

13. LEASE ARRANGEMENTS

14. OTHER ASSETS

15. BORROWINGS

Details are as follows:

16. NOTES AND ACCOUNTS PAYABLE

17. OTHER LIABILITIES

18. RETIREMENT BENEFIT PLANS

a. Defined contribution plans

b. Defined benefit plans

1) Investment risk

2) Interest risk

3) Salary risk

19. EQUITY

a. Ordinary shares

b. Capital surplus

c. Retained earnings and dividends policy

d. Special reserve

20. REVENUE

21. NET PROFIT

a. Other gains and losses

b. Finance costs

c. Depreciation and amortization

22. INCOME TAX

23. EARNINGS PER SHARE (EPS)

24. CAPITAL MANAGEMENT

25. FINANCIAL INSTRUMENTS

a) Foreign currency risk

Sensitivity analysis

2) Credit risk

3) Liquidity risk

Liquidity and interest rate risk tables

26. TRANSACTIONS WITH RELATED PARTIES

T.Y. Audit Report / Information 2023