TYNTEK - Audit Report / Information 2023

Stock Code: 2426

TYNTEK Corporation

Standalone Financial Statements and Independent Auditors' Report For the Years Ended December 31, 2023 and 2022

Address: No. 15, Kezhong Rd., Zhunan Township, Miaoli County, Hsinchu Science Park TEL: (03)5781616

§ Table of Contents §

				Notes No. of
		Item	Page	Financial Report
I.	Cover Page		1	-
II.	Table of Contents		2	-
III.	Independent Auditors’ Review Report		3～6	-
IV.	parent-only Balance Sheet		7	-
V.	parent-only Statement of Comprehensive		8~10	-
	Income
VI.	parent-only Statement of Changes in Equity		11	-
VII.	parent-only Statement of Cash Flows		12～14	-
VIII.	Notes to Standalone Financial Statements
	(I)	Organization and operations	15	I
	(II)	The Authorization of Financial	15	II
		Statements
	(III)	Application of New and Revised	15～17	III
		International Financial Reporting
		Standards
	(IV)	Summary of Significant Accounting	17～33	IV
		Policies
	(V)	Critical Accounting Judgements and	34	V
		Key Sources of Estimation and
		Uncertainty
	(VI)	Summary of Significant Accounting	35～71	VI~XXX
		Items
	(VII)	Related party transactions	71～75	XXXI
	(VIII)	Pledged Assets	75	XXXII
	(IX)	Significant Contingent Liabilities	75	XXXIII
		and Unrecognized Commitments
	(X)	Major Disaster Loss	-	-
	(XI)	Material Events After the Balance	-	-
		Sheet Date
	(XII)	Significant assets and liabilities	75～77	XXXIV
		denominated in foreign currencies
	(XIII)	Additional Disclosures
		1. Information about significant	77、79～80	XXXV
		transactions
		2. Information about investees	77、81~82	XXXV
		3. Information on investments in	78、83～84	XXXV
		Mainland China
		4. Information on main investors	78、85	XXXV
	(XIV)	Segments Information	-	-
IX.	Details of Significant Accounting Items		86～108	-

Independent Auditors’ Review Report

To TYNTEK Corporation,

Audit opinion

We have reviewed the standalone balance sheet of TYNTEK Corporation (the “Company”) for the years ended December 31, 2023 and 2022 and the related standalone statements of comprehensive income, changes in equity and cash flows for the years then ended, and relevant notes, including a summary of significant accounting policies “(collectively referred to as the standalone financial statements)”.

In our opinion, based on our audit and the audit reports of other accountants (please refer to the "Miscellaneous" paragraph), the accompanying standalone financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2023 and 2022 and for the years then ended, and its individual financial performance and its individual cash flows for the years then ended in conformity with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for audit opinion

We conducted our audits in accordance with the Regulations Governing the Auditing and Attestation of Financial Statements by Certified Public Accountants and auditing standards in the Republic of China. Our responsibility under those standards is further described in the section of "Auditor's Responsibilities for the Audit of the Parent-only Financial Statements". 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. Based on our audit results and the audit reports of other CPAs, we are of the opinion that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key audit matters

Key audit matters refer to the most vital matters in our audit of the standalone financial statements of the Company for the year ended December 31, 2023 based on our professional

judgment. These matters were addressed in our audit of the parent-only financial statements as a whole, and in forming our audit opinion. We do not express a separate opinion on these matters.

Key audit matters of the standalone financial statements of the Company for the year ended December 31, 2023 are stated as follows

Sales recognition

The Company’s 2023 consolidated operating income was NT$2,003,883 thousand. Please refer to Notes 4 and 25 to the consolidated financial statements for the accounting policy and information related to revenue recognition. The Company’s operating income is mainly from the sale of optoelectronic products. As it has many sales clients at home and abroad, the sales, in which transactions increased compared to the prior year, the companies with significant growth amounts are listed as a key audit matter for the year.

The main audit procedures we performed for said matter are as follows:

Understand and test the effectiveness of the design and the implementation of the main internal control mechanism for the sales.
Select samples randomly to check the receipts and payment status related to the sales, and inquire the existence of the transaction counterparties to verify the actual occurrence of the sales, and check whether there is any anomaly existing in the sales counterparties and the payment recipients.

Other Matters

Some of the investees included in the standalone financial statements using the equity method have not been audited by us but by other CPAs. Therefore, in the opinion we expressed about the standalone financial statements, the above-mentioned investees using the equity method and its relevant shares of profit or loss are recognized according to the audit report by other CPAs. As of December 31, 2023 and 2022, the balance of investment in the aforementioned investees using the equity method was NT$186,898 thousand and NT$165,874 thousand, accounting for 3.68% and 3.17% of the total assets, respectively, and the share of profit or loss on associates recognized using the equity method for the year ended December 31, 2023 and 2022 was NT$(2,071) thousand and NT$16,455 thousand, accounting for 1.41% and (10.16)% of the net income before tax.

Responsibilities of the management and the governing body for the parent-only financial statements

The responsibilities of the management are to prepare the parent-only financial statements with fair presentation in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and to maintain necessary internal control associated with the preparation in order to ensure that the financial statements are free from material misstatement arising from fraud or error.

In preparing the standalone financial statements, the management is responsible for assessing the ability of the Company in continuing as a going concern, disclosing relevant matters, and adopting the going concern basis of accounting unless the management intends to liquidate the Company or cease the operations without other viable alternatives.

The governing body of the Company (including the Audit Committee) is responsible for supervising the financial reporting process.

Auditor's responsibilities for the audit of the parent-only financial statements

Our objectives are to obtain reasonable assurance on whether the parent-only financial statements as a whole are free from material misstatement arising from fraud or error, and to issue an independent auditors' report. Reasonable assurance is a high-level assurance but is not a guarantee that an audit conducted in accordance with the auditing standards in the Republic of China will always detect a material misstatement when it exists. Misstatement may arise from frauds or errors. If the amounts of misstatements, either separately or in aggregate, could reasonably be expected to influence the economic decisions of the users of the parent-only financial statements, they are considered material.

We have utilized our professional judgment and maintained professional doubt when performing the audit work in accordance with the auditing standards in the Republic of China. We also perform the following tasks:

Identify and assess the risks of material misstatement arising from fraud or error within the parent-only financial statements; design and execute countermeasures in response to said risks, and obtain sufficient and appropriate audit evidence to provide a basis of our opinion. Fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Therefore, the risk of not detecting a material misstatement resulting from fraud is higher than the one resulting from error.
Understand the internal control related to the audit in order to design appropriate audit procedures under the circumstances, while not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.
Evaluate the appropriateness of accounting policies adopted and the reasonableness of accounting estimates and relevant disclosures made by the management.
Conclude on the appropriateness of the management's adoption of the going concern basis of accounting based on the audit evidence obtained and whether a material uncertainty exists for events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we are of the opinion that a material uncertainty exists, we shall remind users of the parent-only financial statements to pay attention to relevant disclosures in said statements within our audit report. If such disclosures are inadequate, we need to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our
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auditor's 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-only financial statements (including relevant notes), and whether the parent-only financial statements adequately present the relevant transactions and events.
Obtain sufficient and appropriate audit evidence concerning the financial information of entities within the Company, to express an opinion on the standalone financial statements. We are responsible for guiding, supervising, and performing the audit and forming an audit opinion on the Company.

The matters communicated between us and the governing body include the planned scope and times of the audit and significant audit findings (including any significant deficiencies in internal control identified during the audit).

We also provided the governing body with a declaration that we have complied with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China regarding independence, and communicated with them all relationships and other matters that may possibly be regarded as detrimental to our independence (including relevant protective measures).

From the matters communicated with the governing body, we determined the key audit matters for the audit of the Company's standalone financial statements for the year ended December 31, 2023. We have clearly indicated such matters in the auditors' report unless legal regulations prohibit the public disclosure of specific matters, or in extremely rare cases, we decided not to communicate over specific items in the auditors' report, for it could be reasonably anticipated that the negative effects of such disclosure would be greater than the public interest it brings forth.

Deloitte Taiwan CPA: Su-Li Fang

CPA: Chen, Ming-Hui

The Financial Supervisory Commission R.O.C. Approved No. Jing-Guang-Zheng-Liu No. 0940161384

Securities and Futures Commission Approval Document No.

Tai-Cai-Zeng-VI No. 0930128050

February 21, 2024

TYNTEK Corporation

parent-only Balance Sheet

For the Years Ended December 31, 2023 and 2022

Unit: NTD thousand

Code 1100 1110 1136 1150 1170 1180 1200 1210 1220 130X 1479 11XX 1517 1535 1550 1600 1755 1780 1840 1915 1990 15XX 1XXX	Asset CURRENT ASSETS Cash and cash equivalents (Notes 6 and 30) Financial assets at fair value through profit or loss - current (Note 7 and 30) Financial assets at amortized cost - current (Note 9, 30, and 32) Notes receivable, net (Notes 10 and 30) Accounts receivable, net (Notes 10 and 30) Accounts receivable - related parties, net (Notes 10, 30, and 31) Other receivables (Notes 10 and 30) Other receivables - related parties (Notes 10, 30, and 31) Current tax assets (Note 25) Inventories (Note 11) Other current assets (Note 16) Total current assets non-current assets Financial assets at fair value through profit or loss - non-current (Note 8 and 30) Financial assets at amortized cost - non- current (Notes 9, 30, and 32) Investments accounted for using equity method (Note 12) Property, plant and equipment (Notes 13, 32, and 33) Right-of-use assets (Note 14) Intangible assets (Note 15) Deferred tax assets (Note 25) Prepayments for equipment (Note 33) Other non-current assets (Note 16 and 30) Total non-current assets Total assets		December 31,2023 Amount % $ 1,126,430 22 18,383 1 6,239 - 334 - 608,278 12 39,221 1 11,535 - 8,016 - 952 - 606,889 12 17,112 - 2,443,389 48 50,698 1 - - 682,406 14 1,735,243 34 80,246 2 12,334 - 47,675 1 17,446 - 2,710 - 2,628,758 52 $ 5,072,147 100	December 31,2023 Amount % $ 1,126,430 22 18,383 1 6,239 - 334 - 608,278 12 39,221 1 11,535 - 8,016 - 952 - 606,889 12 17,112 - 2,443,389 48 50,698 1 - - 682,406 14 1,735,243 34 80,246 2 12,334 - 47,675 1 17,446 - 2,710 - 2,628,758 52 $ 5,072,147 100		March 31,2022	March 31,2022	% 24 - - - 11 1 - - - 14 - 50 1 - 14 31 2 - 1 1 - 50 100	Code 2100 2120 2150 2170 2180 2200 2230 2280 2320 2313 2399 21XX 2540 2550 2570 2580 2630 2640 2670 25XX 2XXX 3110 3200 3310 3320 3350 3300 3400 3XXX	LIABILITIES AND EQUITY CURRENT LIABILITIES Short-term borrowings (Notes 17 and 30) Financial liabilities at fair value through profit or loss - current (Note 7 and 30) Notes payable (Notes 18 and 30) Accounts payable (Notes 18 and 30) Accounts payable to related parties (Notes 18, 30, and 31) Other payables (Notes 19 and 30) Current tax liabilities (Note 25) Lease liabilities - current (Notes 14 and 30) Current portion of long-term borrowings (Notes 17 and 30) Unearned revenue (Notes 19, 27, and 30) Other current liabilities (Note 19) Total current liabilities non-current liabilities Long-term borrowings (Notes 17 and 30) Provisions - non-current (Note 20) Deferred tax liabilities (Note 25) Lease liabilities - non-current (Notes 14 and 30) Long-term deferred revenue (Notes 27 and 30) Defined benefit liability - non-current (Note 21) Other non-current liabilities (Note 19 and 30) Total non-current liabilities Total liabilities Equity (Note 22) Ordinary shares Capital surplus Retained earnings Statutory reserves Special reserves undistributed earnings Total retained earnings Other equities Total equity TOTAL LIABILITIES AND EQUITY		December 31,2023 Amount % $ 28,210 1 - - 4 - 333,077 7 7,560 - 197,204 4 - - 3,222 - 178,765 3 9,746 - 10,806 - 768,594 15 344,917 7 19,894 - 525 - 79,976 2 694 - 15,063 - 4,038 - 465,107 9 1,233,701 24 3,006,223 59 245,261 5 286,048 6 46,381 1 291,768 6 624,197 13 37,235) ( 1) 3,838,446 76 $ 5,072,147 100	December 31,2023 Amount % $ 28,210 1 - - 4 - 333,077 7 7,560 - 197,204 4 - - 3,222 - 178,765 3 9,746 - 10,806 - 768,594 15 344,917 7 19,894 - 525 - 79,976 2 694 - 15,063 - 4,038 - 465,107 9 1,233,701 24 3,006,223 59 245,261 5 286,048 6 46,381 1 291,768 6 624,197 13 37,235) ( 1) 3,838,446 76 $ 5,072,147 100		December 31,2022	December 31,2022	December 31,2022
			Amount $ 1,126,430 18,383 6,239 334 608,278 39,221 11,535 8,016 952 606,889 17,112 2,443,389 50,698 - 682,406 1,735,243 80,246 12,334 47,675 17,446 2,710 2,628,758 $ 5,072,147			Amount $ 1,232,790 24,248 - 615 580,928 35,296 7,949 8,014 - 715,679 9,771 2,615,290 35,857 6,665 741,050 1,651,585 82,174 6,708 35,469 60,488 1,603 2,621,599 $ 5,236,889						Amount $ 28,210 - 4 333,077 7,560 197,204 - 3,222 178,765 9,746 10,806 768,594 344,917 19,894 525 79,976 694 15,063 4,038 465,107 1,233,701 3,006,223 245,261 286,048 46,381 291,768 624,197 37,235) 3,838,446 $ 5,072,147			Amount $ 54,629 344 27 283,695 1,705 206,332 20,236 2,872 137,861 11,375 10,390 729,466 420,814 18,444 2,655 81,679 846 18,862 4,038 547,338 1,276,804 3,006,223 243,873 286,048 37,523 432,801 756,372 46,383) 3,960,085 $ 5,236,889		%
											(		(	(		(	1 - - 6 - 4 - - 3 - - 14 8 - - 2 - - - 10 24 57 5 6 1 8 15 1) 76 100

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

Chairman: Chou Wen-Long

Manager: Lee Jung-Huan

Accounting Supervisor: Li, Hsiao-Ping

TYNTEK Corporation

parent-only Statement of Comprehensive Income

For the Year Ended December 31, 2023 and 2022

Unit: NTD thousands; loss per share in NTD

Code 4000 Operating revenue (Notes 23 and 31) 5000 Operating cost (Notes 11, 24, and 31) 5900 Gross income from operations Operating expenses 6100 Selling and marketing expenses (Notes 24) 6200 Administrative expenses (Notes 24) 6300 Research and development expense (Notes 24) 6000 Total operating expenses 6550 Other income and expenses, net (Note 24) 6900 Net operating (loss) profit Non-operating income and expense 7100 Interest revenue (Note 24 and 31) 7010 Other income (Notes 24 and 31) 7020 Other gains or losses (Note 24) 7050 Financial costs (Note 24) 7070 Share of profit or loss of subsidiaries and associates accounted for using equity method (Note 12) 7000 Total non-operating income and expenses		2023
		Amount $ 2,003,883 1,803,730 200,153 32,848 147,078 121,711 301,637 520 100,964) 10,219 9,583 1,730 11,848 ) 56,020) 46,336)
	( ( ( (

(Continued on next page)

(Continued from previous page)

Code 7900 Net loss before tax 7950 Income tax income (expense) (Note 25) 8200 Net loss of the current year Other comprehensive income (net amount) 8310 Items that will not be reclassified subsequently to profit or loss: 8311 Remeasurement of defined benefit plans (Note 21) 8316 Unrealized gains (losses) on investments in equity instruments at FVTOCI (Note 22) 8336 Unrealized gains (losses) on equity instruments of subsidiaries, associates, and joint ventures at FVOCI accounted for using the equity method (Note 22) 8349 Income tax relating to items that will not be reclassified subsequently to profit or loss (Note 22) 8360 Items that may be reclassified subsequently to profit or loss (Note 22): 8380 Share of other comprehensive income of subsidiaries accounted for using the equity method 8399 Income tax relating to items that may be reclassified subsequently to profit or loss		2023	% ( 8 ) ( 1) ( 7) - 1 - - - -		2022
		Amount $ 147,300 ) 15,346) 131,954) 221 ) 14,841 1,069 2,968 ) 4,742 ) 948			Amount $ 161,979 ) 19,526 181,505) 8,030 29,815 ) 3,344 ) 5,963 4,060 812)	%
	( ( ( ( ( (			( ( ( ( (		( 7 ) 1 ( 8) - ( 1 ) - - - -

8300 Other comprehensive income of the current year (net amount after tax) 8500 Total comprehensive income of the current year ( Loss per share (Note 26) 9710 Basic ( 9810 Diluted (	8,927 $ 123,027) ( $ 0.44) $ 0.44)	1 ( 6) ( ( (	15,918) ( $ 197,423) ( $ 0.60) $ 0.60)	1) 9)

The accompanying notes are an integral part of the parent-only financial statements. Chairman: Chou Wen-Long Manager: Lee Jung-Huan Accounting Supervisor: Li, Hsiao-Ping

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TYNTEK Corporation

parent-only Statement of Changes in Equity

For the Year Ended December 31, 2023 and 2022

Unit: NTD thousand

Share capital Shares (thousand) Amount 300,621 $ 3,006,223 - - - - - - - - - - - - - - 300,621 3,006,223 - - - - - - - - - - - - 300,621 $ 3,006,223		Retained earnings		Other items of equity Exchange Differences in Translating the Financial Statements of ForeignOperations Unrealized Gain (Loss) on Financial Assets at Fair Value Through Other Comprehensive Income ( $ 22,851 ) $ 416 - - - - - - - - - - 3,248 ( 27,196) 3,248 ( 27,196) ( 19,603 ) ( 26,780 ) - - - - - - ( 3,794) 12,942 ( 3,794) 12,942 - - ($ 23,397) ($ 13,838)	Other items of equity Exchange Differences in Translating the Financial Statements of ForeignOperations Unrealized Gain (Loss) on Financial Assets at Fair Value Through Other Comprehensive Income ( $ 22,851 ) $ 416 - - - - - - - - - - 3,248 ( 27,196) 3,248 ( 27,196) ( 19,603 ) ( 26,780 ) - - - - - - ( 3,794) 12,942 ( 3,794) 12,942 - - ($ 23,397) ($ 13,838)		Total equity
				Exchange Differences in Translating the Financial Statements of ForeignOperations ( $ 22,851 ) - - - - - 3,248 3,248 ( 19,603 ) - - - ( 3,794) ( 3,794) - ($ 23,397)
Shares (thousand) 300,621 - - - - - - - 300,621 - - - - - - 300,621	Statutory reserves $ 214,568 71,480 - - - - - - 286,048 - - - - - - $ 286,048	Special reserve $ 55,815 - ( 18,292 ) - - - - - 37,523 8,858 - - - - - $ 46,381
		(	( ( ( ( ( ( ( (	( ( ( ( (	( ( ( (	( ( ( ( ( (	$ 4,457,896 - - 300,622 ) 234 181,505 ) 15,918) 197,423) 3,960,085 - 145 131,954 ) 8,927 123,027) 1,243 $ 3,838,446

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

Chairman: Chou Wen-Long

Manager: Lee Jung-Huan

Accounting Supervisor: Li, Hsiao-Ping

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TYNTEK Corporation

parent-only Statement of Cash Flows

For the Year Ended December 31, 2023 and 2022

Unit: NTD thousand

Code CASH FLOWS FROM OPERATING ACTIVITIES A10000 Net loss before tax of the current year A20010 Adjustments for: A20100 Depreciation expense A20200 Amortization expenses A20400 Net loss on financial assets and liabilities at FVTPL A20900 Financial costs A21200 Interest income A21300 Dividend revenue A22400 Share of profit or loss of subsidiaries and associates accounted for using equity method A23700 Losses on inventory valuation and obsolescence losses A23800 Gain on recovery of inventory valuation and obsolescence loss A22500 Gains on disposal of property, plant and equipment A24100 Unrealized net losses (gains) on foreign currency exchange A29900 Loss from disposal of subsidiary A29900 Gains on lease modification A30000 Changes in operating assets and liabilities A31130 Note receivable A31150 Accounts receivable - related parties A31180 Other receivables (related parties) A31200 Inventories A31230 Pre-payments A31240 Other current assets A32130 Note payable A32150 Accounts payable - related parties A32180 Other payables A32200 Provisions A32230 Other current liabilities A32240 Net defined benefit liability - non- current A33000 Cash from operations A33300 Interest paid A33500 Income tax paid AAAA Net cash inflow from operating activities	2023 ( $ 147,300 ) 255,806 2,376 7,854 11,848 ( 10,219 ) ( 2,494 ) 56,020 - ( 6,217 ) ( 520 ) 5,308 24 - 281 ( 44,911 ) ( 3,215 ) 115,007 ( 7,517 ) 176 ( 23 ) 56,032 ( 14,073 ) 1,450 416 ( 4,069) 272,040 ( 11,967 ) ( 22,174) 237,899	2022
		( $ 161,979 ) 230,834 1,323 118,607 10,955 ( 4,231 ) ( 5,814 ) 196,440 27,880 - ( 452 ) ( 8,889 ) - ( 1 ) 762 422,884 2,725 9,001 581 ( 187 ) 27 ( 144,065 ) ( 49,866 ) 1,637 ( 18,128 ) ( 11,013) 619,031 ( 10,208 ) ( 5,600) 603,223

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Code Net cash flows of investing activities B00010 Acquisition of financial assets at FVTOCI B00040 Acquisition of financial assets at amortized cost B00050 Disposal of financial assets at amortized cost B00200 Disposal of financial assets at FVTPL B01900 Disposal of long-term investments in equity using the equity method B02400 Refunds for subsidiary's capital reduction B02700 Acquisition of property, plant, and equipment B02800 Proceeds from disposal of property, plant and equipment B03700 Decrease in refundable deposits B04500 Acquisition of intangible assets B06500 Decrease in other financial assets B07100 Decrease (increase) in pre-payments for equipment B07500 Interest received B07600 Dividends received B09900 Collection of dividends from subsidiaries B09900 Other investing activities BBBB Net cash inflow (outflow) from investing activities Cash flows from financing activities C00100 Increase in short-term borrowings C00200 Decrease in short-term borrowings C01600 Proceeds from long-term borrowings C01700 Repayments of long-term borrowings C03000 Decrease in guarantee deposits received C04020 Repayment of the principal portion of leases C04500 Cash dividends distributed CCCC Net cash outflows from financing activities DDDD Effects of exchange rate changes on the balance of cash held in foreign currencies EEEE Increase (decrease) in cash and equivalents E00100 Balance of cash and cash equivalents at the beginning of the year	2023 $ - ( 6,239 ) 6,665 - - - ( 330,910 ) 520 - ( 8,002 ) - 43,042 9,846 2,494 364 ( 1,107) ( 283,327) 141,087 ( 164,869 ) 111,560 ( 148,334 ) - ( 2,915 ) - ( 63,471) 2,539 ( 106,360 ) 1,232,790	2022
		( $ 2,247 ) - 43,521 144,051 3,186 215,631 ( 124,148 ) 2,232 7 ( 6,573 ) 84 ( 222,702 ) 4,096 5,814 50,198 ( 1,161) 111,989 163,510 ( 206,885 ) 55,060 ( 135,475 ) ( 2,058 ) ( 3,152 ) ( 300,622) ( 429,622) 6,975 292,565 940,225

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$ 1,126,430

$ 1,232,790

E00200 Balance of cash and cash equivalents at the end of the year

The accompanying notes are an integral part of the parent-only financial statements. Chairman: Chou Wen-Long Manager: Lee Jung-Huan Accounting Supervisor: Li, Hsiao-Ping

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TYNTEK Corporation

Notes to Standalone Financial Statements

For the Year Ended December 31, 2023 and 2022

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

I. Organization and operations

TYNTEK Corporation (hereinafter referred to as the "Company") was incorporated on April 4, 1987 in accordance with the Company Act of R.O.C. The main businesses are research and development, manufacturing, and sales of relevant products, including gallium arsenide, infrared, light-emitting diodes, laser diodes, phototransistors, photodiodes, single crystal and epitaxy, crystal grains, optoelectronic systems, radio transmitters and other electrical devices that can generate radio radiant energy.

The Company’s shares had been listed for trading in Taipei Exchange (TEPx) since November 1998 and were approved by the Securities and Futures Commission, Ministry of Finance (currently known as the Securities and Futures Bureau, Financial Supervisory Commission) to be listed on the Taiwan Stock Exchange for trading instead since September 2000.

The standalone financial statements of the Company are presented in the Company’s functional currency, i.e. the New Taiwan dollar.

II. The Authorization of Financial Statements

The standalone financial statements were approved by the board of directors and authorized for issue on February 21, 2024.

III. Application of New and Revised International Financial Reporting Standards

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

The application of the amendments to the IFRSs endorsed and issued into effect by the FSC does not have material impact on the Company’s accounting policies.

(II) IFRSs endorsed by FSC that are applicable from 2024 onwards

New, Revised or Amended Standards and Effective Date Issued by Interpretations IASB (Note 1) Amendments to IFRS 16 “Lease Liability in a Sale January 1, 2024 (Note 2) and Leaseback”

Amendments to IAS 1 “Classification of Liabilities January 1, 2024 as Current or Non-current”

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New, Revised or Amended Standards and Effective Date Issued by Interpretations IASB (Note 1) Amendments to IAS 1 “Non-current Liabilities with January 1, 2024 Covenants” Amendments to IAS 7and IFRS 7 “Supplier Finance January 1, 2024 (Note 3) Arrangements”

Note 1: Unless stated otherwise, the above New, Revised or Amended Standards and Interpretations of IFRSs are effective for annual periods beginning on or after their respective effective dates.
Note 2: The seller and lessee shall apply the amendments to IFRS 16 retrospectively to the sale and leaseback carried out after the date of initial application of IFRS 16.
Note 3: When this amendment is first applied, partial disclosure is exempted.
As of the publication date of the standalone financial statements, the Company
has assessed that the above-mentioned standards and amendments to the interpretations will not have a significant influence on the Company’s financial position and financial performance.
(III) The IFRSs issued by the International Accounting Standards Board (IASB) but not yet endorsed and issued into effect by the FSC.

yet endorsed and issued into effect by the FSC.
New, Revised or Amended 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 of IFRS 17 Amendment to IFRS 17 (Initial Application of IFRS 17 and IFRS 9—Comparative Information) Amendments to IAS 21 "Lack of Exchangeability"	Effective Date Issued by IASB(Note 1)
	Not yet specified January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2025 (Note 2)

Note 1: Unless stated otherwise, the above New, Revised or Amended Standards and Interpretations of IFRSs are effective for annual periods beginning on or after their respective effective dates.
Note 2: Applicable to annual reporting periods beginning on or after January 1, 2025. When the amendment is applied for the first time, the impact will be recognized in the retained earnings on the date of initial application. When the Group uses a non-functional currency as the presentation currency, it will affect the exchange differences of foreign operations under equity on the date of initial application.

As of the publication date of the standalone financial statements, the Company is

continuing to assess the impact of amendments to the aforementioned standards and

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interpretations on the Company’s financial position and financial performance, and will disclose relevant impacts when the assessment is completed.

IV. Summary of Significant Accounting Policies

(I) Statement of compliance

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

(II) Basis of preparation

The standalone financial statements have been prepared on the historical cost basis except for the financial instruments measured at fair value and the net defined liabilities recognized 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:

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

When preparing the standalone financial statements, the Company adopted the equity method to account for its investments in subsidiaries and associates. In order to enable the amounts of the profit or loss for the year and other comprehensive income and equity for the year in the standalone financial statements to be the same as the ones attributable to the owners of the Company in its consolidated financial statements, regarding the differences arising from accounting treatments between the parent company only basis and the consolidation basis, adjustments were made to the investments accounted for using the equity method, the share of profit or loss of subsidiaries, associates, and joint ventures using the equity method, the share of other comprehensive income of subsidiaries and associates using the equity method, as well as relevant equity items, as appropriate, in the standalone financial statements.

(III) Classification of current and non-current assets and liabilities

Current assets include:

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Assets held primarily for the purpose of trading;
Assets realized within 12 months after the balance sheet date; and
Cash or cash equivalents (excluding assets restricted from being exchanged or used to settle a liability for at least 12 months after the balance sheet date). Current liabilities include:
Liabilities held primarily for the purpose of trading;
Liabilities realized within 12 months after the balance sheet date; and
Liabilities with a repayment deadline that cannot be unconditionally deferred for at least 12 months after the balance sheet date.

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

current.

(IV) Foreign currency

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

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

Non-monetary items measured at fair value that are denominated in foreign currencies are translated at the rates prevailing on the date when the fair value was determined. The resulting exchange difference is recognized in profit or loss. For items whose changes in fair value are recognized in other comprehensive income, the resulting exchange difference is recognized in other comprehensive income.

Non-monetary items measured at historical cost that are denominated in foreign currencies are translated at the rates of exchange prevailing on the transaction dates and are not retranslated.

When preparing the standalone financial statements, the assets and liabilities of the Company’s foreign operations (including subsidiaries, associates, joint ventures, or branches that operate in countries or adopt the functional currencies different from the Company) are translated into New Taiwan dollar. Income and expense items are translated at the average exchange rates for the period. The resulting currency exchange differences are recognized in other comprehensive income.

If the Company disposes of the ownership interest of a foreign operation, or disposes of part of the equity of a foreign operation’s subsidiary and loses control,

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or disposes of a foreign operation’s joint agreement or associate, and the retained equity is a financial asset and is treated based on the accounting policies adopted for financial instruments, then all accumulated exchange differences related to the foreign operation will be reclassified to profit or loss.

If the partial disposal of a subsidiary of a foreign operation does not result in the loss of control, the accumulated exchange differences are included in the calculation of the equity transaction proportionally but are not recognized in profit or loss. In the case of any other partial disposal of foreign operations, the accumulated exchange differences will be reclassified to profit or loss according to the proportion of the disposal.

(V) Inventories

Inventories include merchandise, raw materials, work-in-progress, and finished goods. The value of inventories shall be determined based on the cost and net realizable value (NRV), whichever is lower. The comparison of the cost and NRV is based on individual items except for inventories of the same category. The NRV is the estimated selling price in the ordinary course of business, less the estimated cost of completion and the estimated costs necessary to make the sale. The cost of inventories is calculated using the weighted average method.

(VI) Investment in subsidiaries

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

A subsidiary is an entity (including structured entity) that is controlled by the Company.

Under the equity method, investments are initially recognized at cost and adjusted thereafter to recognize the Company’s share of the profit or loss and other comprehensive income of its subsidiaries. In addition, changes in the Company's other equity interest of its subsidiaries are recognized based on its ownership percentage.

Changes in the Company’s ownership interests in subsidiaries that do not result in the Company losing control over the subsidiaries are accounted for as equity transactions. Any difference between the carrying amount of an investment and the fair value of the consideration paid or received is recognized directly in equity.

When the Company’s share of losses of a subsidiary exceeds its equity in said subsidiary (which includes any carrying amount of the investment accounted for by the equity method and long-term equity that, in substance, forms part of the

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Company’s net investment in said subsidiary), the Company continues recognizing its share of further losses.

The amount of the acquisition cost in excess of the Company’s share of the net fair value of the identifiable assets and liabilities of a subsidiary that constitutes the business on the acquisition date is classified as goodwill, which is included in the book value of the investment and cannot be amortized. The amount of the Company’s share of the net fair value of the identifiable assets and liabilities of a subsidiary that constitutes the business on the acquisition date in excess of the amount of the acquisition cost is classified as current income.

When the Company assesses the impairment, it considers the cash-generating unit as a whole in the financial statements and compares its recoverable amount with the carrying amount. If the recoverable amount of an asset increases subsequently, the reversal of the impairment loss shall be recognized in gains, but the carrying amount of the asset after the reversal of the impairment loss shall not exceed the carrying amount of the asset less amortization without impairment loss recognized. The impairment loss attributable to goodwill shall not be reversed in subsequent periods.

When the Company loses control over a subsidiary, it measures its remaining investment in said subsidiary based on the fair value on the day when the control is lost. The fair value of the remaining investment and the difference between any disposal price and the carrying amount of the investment on the day when the control is lost are recognized in profit or loss for the period. In addition, all amounts recognized in other comprehensive income related to said subsidiary are accounted for on the same basis as the one adopted for the Company's direct disposal of the relevant assets or liabilities.

The unrealized profit or loss on downstream transactions between the Company and its subsidiaries are eliminated in the standalone financial statements. Profit or loss on downstream and lateral transactions between the Company and its subsidiaries is recognized in the standalone financial statements only to the extent that it does not affect the Company's interests in the subsidiaries.

(VII) Investments in Associates

An associate is an entity over which the Company has significant influence and is not a subsidiary nor a joint venture.

The Company adopts the equity method to account for its investments in associates.

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Under the equity method, investments in an associate are initially recognized at cost and adjusted thereafter to recognize the Company’s share of the profit or loss and other comprehensive income of the associate. The Company also recognizes the changes in its share of the equity of associates based on the percentage of ownership.

The amount of the acquisition cost in excess of the Company’s share of the net fair value of the identifiable assets and liabilities of an associate that constitutes the business on the acquisition date is classified as goodwill, which is included in the book value of the investment and cannot be amortized. The amount of the Company’s share of the net fair value of the identifiable assets and liabilities of an associate that constitutes the business on the acquisition date in excess of the amount of the acquisition cost is classified as profit or loss.

When an associate issues new shares, if the Company does not subscribe according to the ownership percentage, which causes the ownership percentage to change, and, thus, the net equity value of the investment increases or decreases, capital surplus - the changes in the net equity value of associates and joint ventures accounted for using the equity method and the investment accounted for using the equity method are adjusted for the increase or decrease. However, if the new shares is not subscribed to or acquired according to the ownership percentage, which results in a decrease in the ownership interests of the associate, the amount recognized in the other comprehensive income related to the associate is reclassified according to the percentage of the decrease, and the basis of the accounting treatment adopted is the same as the basis that the associate must follow in the case of direct disposal of relevant assets or liabilities. Where the adjustment in the preceding paragraph shall be debited to the capital surplus, and the balance of the capital surplus generated by the investment under the equity method is insufficient, the difference is debited to the retained earnings.

When the Company’s share of losses on an associate equals or exceeds its interest in the associate (including any carrying amount of the investment accounted for using the equity method and other long-term interests that, in substance, form part of the Company’s net investment in the associate), the Company discontinues recognizing its share of further losses. Additional losses and liabilities are recognized only to the extent that the Company has incurred legal obligations, or constructive obligations, or made payments on behalf of said associate.

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The entire carrying amount of an investment (including goodwill) is tested for impairment as a single asset by comparing its recoverable amount with its carrying amount. Any impairment loss recognized is not allocated to any asset, including goodwill that forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognized only to the extent that the recoverable amount of the investment subsequently increases.

The Company ceases to adopt the equity method on the day when its investment ceases to be an associate, and its retained equity in the original associate is measured at fair value. The differences between the fair value, the proceeds from the disposal, and the carrying amount of the investment on the day when the equity method ceases to be adopted are recognized in profit or loss. In addition, all amounts recognized in other comprehensive income related to said associate are accounted for on the same basis as the one adopted for the associate's direct disposal of the relevant assets or liabilities. If an investment in an associate becomes an investment in a joint venture, or an investment in a joint venture becomes an investment in an associate, the Company will continue to adopt the equity method without remeasuring the retained equity.

Profit or loss on upstream, downstream, and lateral transactions between the Company and its associates is recognized in the standalone financial statements only to the extent that it does not affect the Company's interests in the associates. (VIII) Property, plant, and equipment

Property, plant and equipment are recognized at cost less accumulated depreciation and accumulated impairment loss.

Property, plant and equipment are depreciated using the straight-line method over their useful lives. Each significant part is depreciated separately. The Company conducts at least one annual review at the end of each year to assess the estimated useful life, residual value, and depreciation methods, while applying the effect of changes in accounting estimates prospectively.

When derecognizing property, plant and equipment, the difference between the net disposal proceeds and the carrying amount of the asset is recognized in loss or profit.

(IX) Investment Property

Investment property refers to property held for the purpose of earning rent or capital appreciation or both (including the assets that meet the definition of investment property and the right-of-use assets). Investment property also includes land held, in which the future use has not yet been determined.

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Self-owned investment property is initially measured at cost (including transaction costs), and subsequently measured at cost less accumulated depreciation and accumulated impairment loss.

The investment property is depreciated on a straight-line basis.

When investment property is derecognized, the difference between the net disposal proceeds and the carrying amount of the asset is recognized in profit or loss.

(X) Intangible asset

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. Intangible assets are amortized using straight-line method over the useful lives. The Company conducts at least one annual review at the end of each year to assess the estimated useful life, residual value, and amortization methods, while applying the effects of changes in accounting estimates prospectively. Intangible assets with indefinite useful lives are recognized at cost less accumulated impairment loss.

Internally generated— research and development (R&D) expenditure

Research expenditure is recognized in expenses when incurred.

Acquired in a business combination

The intangible assets obtained in a business combination are recognized at the fair value on the acquisition date and recognized separately from goodwill, and subsequently measured in the same method for the intangible assets acquired separately.

Derecognition

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

(XI) Impairment of assets related to property, plant and equipment, right-of-use assets, intangible assets, and assets related to contract costs

The Company assesses if there are any signs of possible impairment in property, plant, and equipment as well as right-of-use and intangible assets at each balance sheet date. If there is any sign of impairment, an estimate is made of its recoverable amount. If it is not possible to determine the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-

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generating unit to which the asset belongs. Corporate assets are allocated to the smallest group of cash-generating units on a reasonable and consistent basis.

Intangible assets with indefinite useful lives and not yet available for use are tested for impairment at least annually and whenever there is a sign that the assets may be impaired.

The recoverable amount is the fair value less cost of sales or its value in use, whichever is higher. If the recoverable amount of individual asset or the cashgenerating unit is lower than its carrying amount, the carrying amount is reduced to the recoverable amount, and the impairment loss is recognized in profit and loss.

The inventory, property, plant and equipment, and intangible assets related to customer contracts are first recognized as impairment in accordance with the inventory impairment regulations and the regulations above. Then, the carrying amount of the assets related to contract cost in excess of the expected amount of consideration received for the provision of the relevant goods or services less the direct relevant costs is recognized as an impairment loss. Subsequently, the carrying amount of the assets related to contract cost is included in the cashgenerating unit to which they belong to perform impairment assessment of the cash-generating unit.

When the impairment loss is subsequently reversed, the carrying amount of the asset, the cash-generating unit, or the asset related to contract cost is increased to the revised recoverable amount, provided that the increased carrying amount shall not exceed the carrying amount (less amortization or depreciation) of the asset, cash-generating unit, or the asset related to contract cost which was not recognized as impairment loss in prior years. The reversal of the impairment loss is recognized in profit or loss.

(XII) Financial instruments

Financial assets and financial liabilities shall be recognized in the standalone balance sheet when the Company becomes a party to the contractual provisions of the instruments.

Financial assets and financial liabilities not at fair value through profit or loss are measured at fair value plus transaction costs directly attributable to the acquisition or issuance of financial assets or financial liabilities. The transaction costs directly attributable to the acquisition or issuance of financial assets or financial liabilities at fair value through profit or loss is immediately recognized in profit or loss.

1. Financial asset

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Regular trading of financial assets shall be recognized and derecognized in accordance with trade date accounting.

(1) Measurement types

Financial assets held by the Company are those measured at fair value through profit or loss (FVTPL) and at amortized cost, as well as investments in equity instruments measured at fair value through other comprehensive income (FVTOCI).

A. Financial assets at FVTPL

Financial assets measured at FVTPL include those mandatorily measured at FVTPL and those designated as at FVTPL. Financial assets mandatorily measured at FVTPL include investments in equity instrument that the Company has not designated to measure at FVTOCI, and debt instruments that are not classified as measured at amortized cost or at FVTOCI.

Financial assets measured at FVTPL are measured at fair value, and the gains or losses arising from remeasurement (not including any dividends or interest generated by the financial asset) are recognized in other gains and losses. Please refer to Note 30 for the method of determining the fair value.

B. Financial assets at amortized cost

When the Company's investments in financial assets meet the following two conditions simultaneously, they are classified as financial assets measured at amortized cost:

a. Held under a certain business model, of which the objective is to collect contractual cash flows by holding the financial assets; and
b. The cash flows on specific dates specified in the contractual terms are solely payments of the principal and interest on the principal amount outstanding.

After initial recognition, such assets (including cash and cash equivalents, notes and accounts receivable measured at amortized cost, other receivables, other financial assets, guarantee deposits paid, and time deposits with the original maturity date of more than 3 months) are measured at the amortized cost of the total carrying amount determined by the effective interest method less any impairment loss, and any foreign currency exchange differences are recognized in profit or loss.

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Except for the following two cases, interest revenue is calculated by multiplying the effective interest rate by the total carrying amount of financial assets:

a. For purchased or originated credit-impaired financial asset, interest revenue is calculated by multiplying the credit-adjusted effective interest rate by the amortized cost of the financial asset.
b. For financial asset that is not purchased or originated creditimpaired but subsequently becomes credit impaired, interest income is calculated by multiplying the effective interest rate from the next reporting period after the credit impairment by the amortized cost of the financial asset.

Credit-impaired financial assets refer to the fact that

when an issuer or debtor has experienced major financial difficulties or default, the debtor is likely to apply for bankruptcy or other financial restructuring,

or the active market for the financial assets disappears due to financial difficulties.

Equivalent cash includes time deposits that are highly liquid, convertible into imprest cash at any time with little risk of value changes within 3 months from the date of acquisition, and is used to meet short-term cash commitments.

C. Investments in equity instruments measured at FVTOCI

The Company may, upon initial recognition, make an irrevocable election to designate as at FVTOCI the investments in equity instruments that are not held for trading and the ones that are not recognized by an acquirer in a business combination or with the contingent consideration.

Investments in an equity instrument measured at FVTOCI are measured at fair value, and any subsequent fair value changes are recognized in other comprehensive income and accumulated in other equity. Upon disposal of investments, cumulative gain or loss is directly transferred to retained earnings and are not reclassified to profit or loss.

Dividends of investments in equity instruments measured at FVTOCI are recognized in profit or loss when the Company's right to

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receive dividends is established unless such dividends clearly represent the recovery of a part of the investment cost.

(2) Impairment of financial assets

The Company assesses the impairment loss of financial assets measured at amortized cost (including accounts receivable) based on the expected credit loss on each balance sheet date.

Accounts receivable are recognized in allowance loss based on the lifetime expected credit losses (ECLs). Other financial assets are first assessed based on whether the credit risk has increased significantly since the initial recognition. If there is no significant increase in the risk, a loss allowance is recognized at an amount equal to 12-month ECLs. If the risks have increased significantly, a loss allowance is recognized at an amount equal to lifetime ECLs.

The ECLs refer to the weighted average credit loss with the risk of default as the weight. The 12-month ECLs represent the ECLs from possible defaults of a financial instrument within 12 months after the reporting date. The lifetime ECLs represent the ECLs from all possible defaults in a financial instrument over the expected life of a financial instrument.

For the purpose of internal credit risk management, the Company, without considering the collateral held, determines that the following situations represent defaults in the financial assets:

A. Internal or external information indicates that it is impossible for the debtor to settle the debt.
B. B. It is overdue for more than 90 days, unless there is reasonable and corroborative information showing that a default date postponed is more appropriate.

The Company recognizes an impairment loss for all financial assets with a corresponding downward adjustment to their carrying amount through a loss allowance account. However, the loss allowance for investment in debt instruments measured at FVTOCI is recognized in other comprehensive income without a downward adjustment to the carrying amount.

(3) Derecognition of financial assets

The Company derecognizes a financial asset when the contractual rights to the cash inflow from the financial asset expire or when it transfers

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the financial assets and substantially all the risks and rewards of ownership of the asset to another party.

On derecognition of a financial asset at amortized cost in its entirety, the difference between the asset’s carrying amount and the consideration received is recognized in profit or loss. When the investment in debt instruments measured at FVTOCI is derecognized in its entirety, the difference between its carrying amount and the consideration received plus the sum of any accumulated gains or losses that have been recognized in other comprehensive income is recognized in profit or loss When derecognizing an investment in equity instrument at FVTOC in its entirety, the cumulative profit or loss is transferred directly to retained earnings and is not reclassified to profit or loss.

2. Equity instrument

Debt and equity instruments issued by the Company are classified as either financial liabilities or equity in accordance with the substance of the contractual arrangements and the definitions of financial liabilities and equity instruments. Equity instruments issued by the Company are recognized at the proceeds received, net of the cost of direct issue.

The Company's own equity instruments reclaimed are recognized and deducted under the equity, and its carrying amount is calculated based on the weighted average of the total amount of shares. The purchase, sale, issuance, or cancellation of the Company’s own equity instruments is not recognized in profit or loss.

3. Financial liability

(1) Subsequent measurement

Except for the following circumstances, all financial liabilities are measured at amortized cost in the effective interest method:

A. Financial liability at FVTPL

Financial liability at FVTPL, including held for trading.

Financial liabilities held for trading are measured at fair value; and any gain or loss on remeasurement (including any dividends or interest paid on the financial liability) is recognized in profit or loss. Please refer to Note 30 for the method of determining the fair value.

(2) Derecognition of financial liabilities

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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.

4. Derivatives

The derivative instruments signed by the Company include forward foreign exchange contracts to manage the exchange rate risk.

Derivatives are initially recognized at fair value when the derivative contract is entered, and are subsequently re-measured at fair value on the balance sheet date. The gains or losses generated from the subsequent measurement are directly listed in profit or loss, and are designated as derivative instrument of effective hedging instruments, the timing of their recognition in profit or loss will depend on the nature of the hedging relationship. If the fair value of the derivative instrument is positive, it is listed as a financial asset; if negative, it is listed as a financial liability.

(XIII) Provisions

The amount recognized in provision is based on the risk and uncertainty of the obligation, and is the best estimate of the expenditure required to settle the obligation on the balance sheet date. The provisions are measured at the discounted value of the cash flow estimated to settle the obligation.

(XIV) Revenue recognition

After the Company identifies its performance obligations in contracts with customers, it allocates the transaction costs to each obligation in the contracts and recognizes revenue upon completion of performance obligations.

If several contracts are signed with the same customer (or the customer's related party) almost at the same time, as the goods or services promised in these contracts are single performance obligations, the Company deals with the contracts separately.

Sales revenue

Sales revenue comes from the sales of products. As when a product reaches the transaction conditions signed with a customer, the customer already has the right to set the price and the way the product is used while bearing the main responsibility for resale and the risk of obsolescence, at which the Company recognizes such revenue and reclassifies it to accounts receivable after fulfilling the remaining obligations. Advance receipts from sales are recognized as contract liabilities before a product reaches the transaction conditions signed with a customer.

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In the case of export of raw materials overseas for processing, the control of the ownership of the processed product has not been transferred, so the income is not recognized when said materials are exported.

(XV) Leases

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

The Company as lessor

Where almost all the risks and rewards attached to the ownership of an asset are transferred to the lessee in lease terms, such leases are classified as finance leases. All other leases are classified as operating leases.

2. The Company as lessee

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

A right-of-use asset is initially measured at cost (including the initial measured amount of lease liabilities, the amount of lease payments made to the lessor less lease incentives received prior to the inception of a lease, initial direct costs, and the estimated costs of restoring underlying assets), and subsequently measured at cost less accumulated depreciation and accumulated impairment and adjusted for any remeasurement of the lease liabilities. Right-of-use assets are presented on a separate line in the standalone balance sheets.

A right-of-use asset is depreciated on a straight-line basis over the period from the lease commencement date to the end of its useful life, or to the end of the lease term, whichever is earlier.

Lease liabilities are initially measured at the present value of lease payments. If the interest rate implicit in a lease can be easily determined, the lease payment is discounted at such an interest rate. If the interest rate cannot be easily determined, the lessee's incremental borrowing rate applies.

Subsequently, lease liabilities are measured at the amortized cost using the effective interest rate method, and interest expense is amortized over the lease term. If changes in the lease term, the expected payment under the residual value guarantee, the evaluation of the underlying asset purchase options, or the index or rate used to determine the lease payment over the lease term lead to changes in future lease payments, the Company remeasures the lease liabilities with a corresponding adjustment to the right-of-use assets. However, if the carrying

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amount of the right-of-use assets has been reduced to zero, the remaining remeasurement amount is recognized in profit or loss. For lease modifications that are not treated as a separate lease, remeasurement of the lease liabilities due to the reduced scope of the lease is to reduce the right-of-use assets, and to recognize the profit or loss of the partial or full termination of the lease; the remeasurement of the lease liabilities due to other modifications is to adjust the right-of-use assets. Lease liabilities are presented on a separate line in the standalone balance sheets.

(XVI) Borrowing costs

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

For specific borrowings, if the investment income earned by making a temporary investment before the capital expenditure that meets the requirements is incurred, it is deducted from the borrowing costs that meet the capitalization conditions.

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

(XVII) 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 profit or loss on a systematic basis over the periods, in which the Company recognizes in other income the relevant costs for which the grants are intended to compensate. Government grants whose primary condition is that the Company should purchase, construct, or otherwise acquire non-current assets are recognized as deferred income and reclassified to profit or loss during the useful life of said assets on a reasonable and systematic basis.

If government grants are used to compensate expenses or losses incurred, or are given to the Company for the purpose of immediate financial support without relevant future costs, they can be recognized in profit or loss in the period, during which it can receive said grants.

For the government loan obtained by the Company with an interest rate lower than that in the market, the difference between the loan amount received and the fair

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value of the loan calculated at the prevailing market interest rate is recognized as a government grant.

(XVIII) Employee benefits
Short-term employee benefits
Relevant liabilities for short-term employee benefits are measured by the
non-discounted amount expected to be paid in exchange for employee services.
1. Post-employment benefits

For pension under the defined contribution plan, the amount of pension contributed is recognized as expenses during employees' service period.

The defined benefit cost under the defined benefit pension plan (including service cost, net interest, and remeasurement ) is calculated based on the projected unit credit method. The service cost (including the service cost for the current period) and the net interest of net defined benefit liabilities (assets) are recognized as employee benefit expenses as they occur. The remeasurement (including actuarial gains and losses and the return on plan assets, net of interest) is recognized in other comprehensive income and presented in retained earnings when it occurs, and will not be reclassified to profit or loss.

The net defined benefit liabilities (assets) are the deficit (surplus) of the defined benefit pension plan. The net defined benefit assets may not exceed the present value of any refunds from the plan or reductions in future contributions to the plan.

Other long-term employee benefits

The accounting treatment of other long-term employee benefits is the same as that of post-employment benefits, but the relevant remeasurement is recognized in profit or loss.

(XIX) Income tax

The income tax expense represents the sum of the tax currently payable and deferred tax.

1. Tax currently payable

The Company determines the income (loss) of the current year in accordance with the laws and regulations in each jurisdiction area for income tax filings, and calculates the income tax payable (recoverable) accordingly.

A surtax imposed on the undistributed earnings pursuant to the Income Tax Act of R.O.C. is recognized via a resolution at the annual shareholders' meeting. Adjustments to income tax payable from prior years are recognized in the current income tax.

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2. Deferred tax

Deferred income tax is calculated based on the temporary differences between the carrying amount of assets and liabilities and the corresponding tax bases used in the computation of taxable income.

Deferred income tax liabilities are generally recognized for all taxable temporary differences, and deferred tax assets are recognized when there are likely to be taxable income to deduct temporary differences, loss carryforwards, equipment purchase, research and development, as well as talent training expenditure.

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 said temporary difference will not be reversed in the foreseeable future. The deductible temporary differences related to said investments and equity are recognized as deferred income tax only if it is probable that there will be sufficient taxable income to realize the temporary differences, and they are expected to be reversed in the foreseeable future.

The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable income will be available to allow all or part of the asset to be recovered. A previously unrecognized deferred tax asset is also reviewed at each balance sheet date, and its carrying amount will be increased as it has become probable that future taxable income will allow all or part of the asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates in the period in which the liabilities are expected to be settled or assets realized, based on tax rates and tax laws that have been enacted or substantively enacted at the balance sheet date. 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 balance sheet date, to recover or settle the carrying amount of its assets and liabilities.

Current and deferred income tax

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 quity; in which case, the current and deferred taxes are recognized in other comprehensive income or directly in equity, respectively.

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V. Critical Accounting Judgements and Key Sources of Estimation and Uncertainty

In the application of the Company’s accounting policies, the management is required to make judgments, estimations, and assumptions about the relevant information that is not readily accessible from other sources based on historical experience and other relevant factors. Actual results may differ from these estimates.

When developing significant accounting estimates, the Company takes into account climate change, relevant government policies and laws, Russia-Ukraine War and relevant international sanctions and their potential impacts on the economic environment, inflation, and fluctuation of market interest rates in the consideration for estimation of cash flows, growth rates, discount rates and profitability and other relevant critical accounting estimates. The management will continue to examine the estimates and basic assumptions. If an amendment to estimates only affects the current period, it shall be recognized in the period of said amendment; if an amendment to accounting estimates affects the current year and future periods, it shall be recognized in the period of said amendment and future periods.

Key Sources of Estimation and Assumption Uncertainty

(I) Inventory impairment

The NRV of inventories is the estimated selling price in the ordinary course of business, less the estimated cost of completion and the estimated costs necessary to make the sale. These estimates are based on current market conditions and historical and historical sales experience in similar products. Changes in market conditions may materially affect the results of these estimates.

VI. Cash and equivalents

Cash and equivalents
Cash on hand and petty cash Check and demand (current) deposit Cash equivalents (bank time deposits with original maturity date of less than 3 months) Time deposits	December 31,2023 $ 184 346,246 780,000 $ 1,126,430	March 31,2022
			$ 207 732,583 500,000 $ 1,232,790

The interest rate ranges of bank demand deposits and time deposits at the balance sheet date are as follows:

date are as follows:
Cash in banks	December 31,2023 0.001%~1.450%	March 31,2022
		0.001%~1.050%

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VII. Financial instruments at FVTPL

December 31, 2023

March 31, 2022

Financial assets - current

Financial assets designated as at FVTPL Non-derivative financial assets - Domestic listed stocks $ 18,368 $ 24,233 - Gold passbook 15 $ 18,383 $ 24,248

Financial liability - current Financial assets designated as at FVTPL Derivatives (not designated for hedging) - Forward foreign exchange contracts (Note) $ - $ 344

Note: The unexpired forward foreign exchange contracts without hedge accounting applied on the balance sheet date are as follows:

March 31, 2022

March 31, 2022
Sale of forward foreign exchange	Currency USD: NTD USD: NTD USD: NTD USD: NTD USD: NTD USD: NTD USD: NTD USD: NTD	Duration December 28, 2022 to January 5, 2023 December 28, 2022 to January 19, 2023 December 28, 2022 to February 3, 2023 December 28, 2022 to February 6, 2023 December 28, 2022 to February 21, 2023 December 28, 2022 to March 6, 2023 December 28, 2022 to March 20, 2023 December 28, 2022 to March 30, 2023	Contract amount (NTD thousand)
			USD 790 USD 1,100 USD 470 USD 500 USD 1,300 USD 1,200 USD 990 USD 330

The Company's purpose of engaging in forward foreign exchange transactions is to hedge risks arising from foreign currency assets and liabilities due to exchange rate fluctuations. As the forward foreign exchange contracts held by the Company do not meet the conditions for effective hedging, hedge accounting is not applicable.

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VIII. Financial assets at FVTOCI

Equity investment instruments December 31, 2023 March 31, 2022 Non-current Domestic investment Stocks listed on TWSE/TPEx and emerging stock markets Brightek Optoelectronic Co., Ltd. $ 41,871 $ 27,030 Unlisted stocks Chipwell Tech Corporation 8,827 8,827 $ 50,698 $ 35,857

The Company has invested in the common stocks of the above-mentioned companies in accordance with medium and long-term strategic purposes, and expects to make profits through long-term investments. The management of the Company believes that if the short-term fair value fluctuations of these investments are recognized in profit or loss, it is inconsistent with the aforementioned long-term investment plan, so it has elected to designate these investments as at FVTOCI.

IX. Financial assets at amortized cost

December 31, 2023 March 31, 2022

Current Time deposits with original maturity date of more than 3 - months - pledge $ 6,239 $ Non-current Time deposits with original maturity date of more than 1 - year - pledge $ $ 6,665

As of December 31, 2023 and 2022, the interest rate range of the pledged time deposits with original maturity date of over one year was 1.565% and 1.325%-1.440%, respectively.

For information on pledged financial assets measured at amortized cost, please refer to Note 32.

X. Notes receivable, accounts receivable, and other receivables

Note receivable From operations	December 31,2023 $ 334	March 31,2022	March 31,2022
			$ 615

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Trade receivable

At amortized cost Gross carrying amount Less: Allowance for impairment loss ( Accounts receivable - related parties Other receivables Loans receivable - related parties Other receivables - related parties Business tax refund receivable Others	$ 609,434 1,156) ( 608,278 39,221 $ 647,499 $ 8,000 16 8,016 8,806 2,729 11,535 $ 19,551	$ 582,084 1,156) 580,928 35,296 $ 616,224 $ 8,000 14 8,014 5,595 2,354 7,949 $ 15,963

Notes and accounts receivable

The average credit period for customers is net 30 to 180 days after the account day. In addition to the loss allowance for individual customers’ actual credit impairment loss, the Company refers to historical experience, considers individual customers’ financial status, industries, competitive advantages, and prospects, and divides them into different risk groups and recognizes loss allowances for each group based on their expected loss rates. In addition, a 100% loss allowance is recognized for accounts receivable with an account opened for over 365 days and no other credit guarantee provided.

In order to reduce credit risk, the management of the Company is responsible for the determination of credit limit, credit approval, and other monitoring procedures to ensure that appropriate actions have been taken in the recovery of overdue receivables. In addition, the Company reviews the recoverable amount of the receivables one by one at the balance sheet date to ensure that the appropriate impairment loss is recognized for uncollectible receivables. With that, the management believes the Company’s credit risk has been significantly reduced.

The Company adopts the simplified approach of IFRS 9 to recognize the loss allowance for accounts receivable based on the lifetime ECLs.

If there is evidence that the counterparty is facing serious financial difficulties and the Company cannot reasonably expect to recover the amount, e.g., the counterparty is in liquidation, the Company directly writes off the relevant accounts receivable, but will continue to try to collect the receivable. The recovered amount is recognized in profit or loss.

The aging analysis of notes and accounts receivable is as follows:

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December 31, 2023

December 31, 2023
Gross carrying amount Loss allowance (lifetime ECLs) Amortized cost		O/A 1–120 days $ 520,898 - $ 520,898	121–180 days $ 127,452 ( 517) $ 126,935	181–365 days $ 79 ( 79) $ -		Over 365 days $ 560 560) $ -		Total
			(	(	(		(	$ 648,989 1,156) $ 647,833

March 31, 2022

March 31, 2022
Gross carrying amount Loss allowance (lifetime ECLs) Amortized cost		O/A 1–120 days $ 505,768 - $ 505,768	121–180 days $ 109,742 - $ 109,742	181–365 days $ 2,391 ( 1,062) $ 1,329		Over 365 days $ 94 94) $ -		Total
				(	(		(	$ 617,995 1,156) $ 616,839

The information on the movements in the loss allowance for notes and accounts receivable is as follows:

receivable is as follows:
Opening balance Less: Write-off in this year Closing balance		2023 $ 1,156 - $ 1,156		2022
			(	$ 11,434 10,278) $ 1,156

XI. Inventories

Inventories
Finished goods Work-in-progress Raw materials Products	December 31,2023 $ 197,897 245,267 163,357 368 $ 606,889	March 31,2022
			$ 256,749 232,598 221,750 4,582 $ 715,679

The inventory-related costs of sales in 2023 and 2022 were NT$1,803,730 thousand and NT$1,869,095 thousand, respectively.

The cost of sales for 2023 and 2022 included the gain on reversal of inventory decline and the loss on inventory decline, which were NT$6,217 thousand and NT$27,880 thousand, respectively; the losses on scrap of inventories were NT$17,091 thousand and NT$40,034 thousand, respectively.

XII. Investments accounted for using equity method

Investment in subsidiaries (I) Investments in associates (II)	December 31,2023 $ 519,211 163,195 $ 682,406	March 31,2022	March 31,2022
			$ 572,731 168,319 $ 741,050

(I) Investment in subsidiaries

December 31, 2023 March 31, 2022 TEK Holding Co., Ltd. $ 241,990 $ 267,383

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Long Benefit Investment Co., Ltd. Keeper Technology Less: Accumulated impairment (	259,218 29,539 530,747 11,536) ( $ 519,211	285,214 31,670 584,267 11,536) $ 572,731

Investee TEK Holding Co., Ltd. Long Benefit Investment Co., Ltd. Keeper Technology (Note 1)	Percentage of ownership interests and voting rights	Percentage of ownership interests and voting rights
	December 31,2023 100.00% 100.00% 19.02%	March 31,2022
		100.00% 100.00% 21.43%

Note 1: Keeper Technology increased capital by NTD 12,000 thousand cash in July 2023. However, the Group did not increase investment proportionally to its shareholding, resulting in a decrease in shareholding from 21.43% to 19.02%. The difference between the investment cost and the net equity value is shown in Note 28. Keeper Technology's cash capital increased by NT$17,000 thousand in February 2024.

Please refer to Note 35 for the details of the investment in subsidiaries indirectly held by the Company.

(II) Investments in Associates

Investments in Associates
Material associates Hsinjing Holding Co. Ltd. (Hsinjing) Associates that are not individually material Less: Accumulated impairment	December 31,2023 $ 160,826 6,579 167,405 ( 4,210) $ 163,195	March 31,2022
	(	(	$ 165,874 6,655 172,529 4,210) $ 168,319

1. Material associates

The Company's percentages of ownership interests and voting rights in

associates at the balance sheet date are as follows:

Companyname Hsinjing (formerly known as Tynsolar)	Percentage of ownershipand votingrights	Percentage of ownershipand votingrights
	December 31,2023 22.79%	March 31,2022
		22.79%

Refer to Table 3 in Note 35. “Information on Investees” for the nature of business, principal places of business, and countries of incorporation of the associates above.

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The Company adopts the equity method to measure the above-mentioned associate. As for the investments using the equity method and the Company's share of profits or losses and other comprehensive income on such investments, associates that are not individually material are calculated based on financial statements that have not been audited by CPAs.

The Company’s investment in Hsinjing using the equity method and its share of profit and loss and other comprehensive income of Hsinjing were recognized based on financial statements audited by other CPAs in 2023 and 2022. However, the management of the Company believes that the financial statements of the aforementioned investees, not audited by CPAs, will not have a material impact.

The information on Level 1 fair value of associate with open market quotes is as follows:

is as follows:
Companyname Hsinjing	December31,2023 $ 462,646	March31,2022
			$ 515,139

The following aggregate financial information on the material associate in 2023 and 2022 is prepared on the basis of IFRSs and has already reflected the adjustments made when the equity method is adopted.

Hsinjing

Hsinjing
Current assets non-current assets Current liabilities non-current liabilities Equity Operating income Net income of the current year Other comprehensive income Total comprehensive income Cash flows Operating activities Investing activities Net cash inflow (outflow)	December31,2023 $ 23,183 1,155,168 ( 2,662 ) ( 513,451) $ 662,238 2023 $ 30,000 ( $ 20,724 ) 215 ($ 20,509) ( $ 3,843 ) ( 7,464) ($ 11,307)	March31,2022
		$ 20,275 1,170,903 ( 2,500 ) ( 503,585) $ 685,093 2022

			$ - $ 72,201 50 $ 72,251 ( $ 19,829 ) ( 10,163) ($ 29,992)

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Aggregate information on associates that are not individually material

The Company’s share of Net income of the continuing operations		2023 $ 288		2022
				$ 405

Refer to Table 3 in Note 36 “Information on Investees” for the nature of business, principal places of business, and countries of incorporation of the associates above.

The Company adopts the equity method to measure the above-mentioned associates that are not individually material, and its share of profits and losses and other comprehensive income is calculated based on financial statements that have not been audited by CPAs.

XIII. Property, plant, and equipment

(I) Assets for own use

Cost Balance at January 1, 2023 Addition Disposal Reclassification Balance at December 31, 2023 Accumulated depreciation and impairment Balance at January 1, 2023 Depreciation expense Disposal Balance at December 31, 2023 Net amount at December 31, 2023 Cost Balance at January 1, 2022 Addition Disposal Reclassification Balance at December 31, 2022 Accumulated depreciation and impairment Balance at January 1, 2022 Depreciation expense Disposal Balance at December 31, 2022 Net amount at December 31, 2022		Self-owned land	Building	Equipment	Leased Improvements	Leased Improvements	Other Equipment	a t	Unfinished construction nd equipment o be checked and accepted	Total
		$ 62,273 - - - $ 62,273 $ - - - $ - $ 62,273 $ 62,273 - - - $ 62,273 $ - - - $ - $ 62,273	$ 1,667,242 39,565 ( 173 ) 40,102 $ 1,746,736 $ 538,457 103,033 ( 173) $ 641,317 $ 1,105,419 $ 1,492,778 54,206 - 120,258 $ 1,667,242 $ 449,871 88,586 - $ 538,457 $ 1,128,785	$ 2,073,765 29,321 ( 48,217 ) 51,739 $ 2,106,608 $ 1,639,190 138,564 ( 48,217) $ 1,729,537 $ 377,071 $ 1,884,807 62,187 ( 8,781 ) 135,552 $ 2,073,765 $ 1,518,070 129,901 ( 8,781) $ 1,639,190 $ 434,575		$ 20,867 - - - $ 20,867 $ 20,821 18 - $ 20,839 $ 28 $ 20,867 - - - $ 20,867 $ 20,802 19 - $ 20,821 $ 46	$ 100,956 11,049 ( 1,664 ) 40,504 $ 150,845 $ 75,050 10,701 ( 1,664) $ 84,087 $ 66,758 $ 89,085 11,453 ( 277 ) 695 $ 100,956 $ 66,749 8,578 ( 277) $ 75,050 $ 25,906	(	$ - 256,039 - 132,345) $ 123,694 $ - - - $ - $ 123,694 $ - - - - $ - $ - - - $ - $ -	$ 3,925,103 335,974 ( 50,054 ) - $ 4,211,023 $ 2,273,518 252,316 ( 50,054) $ 2,475,780 $ 1,735,243 $ 3,549,810 127,846 ( 9,058 ) 256,505 $ 3,925,103 $ 2,055,492 227,084 ( 9,058) $ 2,273,518 $ 1,651,585

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No impairment loss was recognized or reversed in 2023 and 2022.

Depreciation expenses of the property, plant and equipment are calculated on a

straight-line basis over their estimated useful lives as shown in the following:

Building
Main buildings	15 to 55 years
Electromechanica
l power
equipment	8 to 10 years
Engineering
systems	1.5 to 15 years
Equipment	1 to 20 years
Leased Improvements	9 to 15 years
Other Equipment	1 to 17 years

Please refer to Note 32 for the amount of property, plant and equipment pledged

for loans.

XIV. Lease arrangements

(I) right-of-use asset

right-of-use asset
Right-of-use assets amounts Land Transport Equipment Other Equipment The additions of the right-of-use assets Depreciation charge for right- of-use assets Land Transport Equipment Other Equipment	December31,2023 $ 78,590 1,518 138 $ 80,246 2023 $ 1,562 $ 3,109 44 337 $ 3,490	March31,2022
			$ 81,699 - 475 $ 82,174 2022
			$ 2,267 $ 3,107 106 537 $ 3,750

Except for the additions and depreciation listed above, the Company did not

have significant subleases and impairment during the twelve months ended December 31, 2023 and 2022.

(II) lease liabilities

lease liabilities
Lease liabilities amounts Current Non-current	December31,2023 $ 3,222 $ 79,976	March31,2022
			$ 2,872 $ 81,679

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Range of discount rate for lease liabilities is as follows:

Land Transport Equipment Other Equipment	December31,2023 1.41%~1.80% 1.88% 1.80%	March31,2022
		1.41%~1.80% - 1.79%~1.80%

(III) Material lease-in activities and terms

The Company has leased land and built buildings for offices. The lease term is 37 years. Upon the termination of the lease term, the Company does not have preferential rights to acquire the land and buildings leased, and it is agreed that the Company shall not lease, sublease, or transfer all (including the right to use the parking space) or part of the asset leased, or in other methods in disguise, to third parties without the consent of the lessor.

(IV) Other lease information

) Other lease information
Short-term lease expense Total cash outflow for leases		2023 $ 128 $ 4,535)		2022
	(		(	$ 277 $ 4,956)

XV. Intangible asset

Intangible asset
Cost Balance at January 1, 2023 Acquired separately Balance at December 31, 2023 Accumulated amortization Balance at January 1, 2023 Amortization expenses Balance at December 31, 2023 Net amount at December 31, 2023 Cost Balance at January 1, 2022 Acquired separately Balance at December 31, 2022 Accumulated amortization Balance at January 1, 2022 Amortization expenses Balance at December 31, 2022		Computer software $ 41,977 8,001 $ 49,978 $ 36,261 2,290 $ 38,551 $ 11,427 $ 35,404 6,573 $ 41,977 $ 35,023 1,238 $ 36,261	Other intangible assets $ 1,492 - $ 1,492 $ 500 85 $ 585 $ 907 $ 1,492 - $ 1,492 $ 415 85 $ 500		Total
					$ 43,469 8,001 $ 51,470 $ 36,761 2,375 $ 39,136 $ 12,334 $ 36,896 6,573 $ 43,469 $ 35,438 1,323 $ 36,761

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Net amount at December 31, 2022

$ 5,716 $ 992 $ 6,708

No impairment loss was recognized or reversed in 2023 and 2022.

Amortization expenses of the property, plant and equipment are calculated on a straight-line basis over their estimated useful lives as shown in the following:

Computer software Other intangible assets Other assets Current Pre-payments Input VAT Others Non-current Long-term prepayments Refundable deposits Borrowings (I) Short-term borrowings Unsecured borrowings Credit borrowings and borrowings for purchase of materials	1 to 6 years 16 to 18 years December 31,2023 March 31,2022 $ 9,259 $ 6,543 7,820 3,019 33 209 $ 17,112 $ 9,771 $ 2,417 $ 1,310 293 293 $ 2,710 $ 1,603 December 31,2023 March 31,2022 $ 28,210 $ 54,629	1 to 6 years 16 to 18 years December 31,2023 March 31,2022 $ 9,259 $ 6,543 7,820 3,019 33 209 $ 17,112 $ 9,771 $ 2,417 $ 1,310 293 293 $ 2,710 $ 1,603 December 31,2023 March 31,2022 $ 28,210 $ 54,629
	$ 6,543 3,019 209 $ 9,771 $ 1,310 293 $ 1,603 March 31,2022
(I)
		$ 54,629

The interest rates of bank borrowings were 0.92%-1.38% and 0.90%-1.62% as of December 31, 2023 and 2022, respectively.

Please refer to Note 32 for details of pledge and security for borrowings.

(II) Long-term borrowings

Long-term borrowings
Secured borrowings Loan project for return to Taiwan for investment (1) Bank loan (2) Unsecured borrowings Loan project for return to Taiwan for investment (1) Less: Current portion Government grant discount (1) Long-term borrowings	December 31,2023 $ 223,455 291,667 10,250 ( 178,765 ) ( 1,690) $ 344,917	March 31,2022
		$ 152,215 391,667 16,400 ( 137,861 ) ( 1,607) $ 420,814

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The loan project for return to Taiwan for investment is based on the program of "Loan for Welcoming Overseas Taiwanese Businesspeople to Return to Taiwan for Investment" launched by the National Development Fund, Executive Yuan. Since March 2020, the Company has successively taken out medium-term bank loans from domestic banks with maturity dates between October 14, 2024 and February 15, 2027, and the Company shall repay the principal and interest in an amortized manner on a monthly basis. The interest rate ranges of bank borrowings were 1.200%-1.500% as at December 31, 2023 and 1.075%-1.375% as at December 31, 2022.
The bank loan is a loan ofNT$500,000,000 taken out by the Company on November 8, 2021. The loan term ends on November 8, 2026. The purpose of the loan is to repay the balance of the 2017 syndicated loan. The principal and interest are amortized on a monthly basis, and the bank borrowing interest rates were 1.880% and 1.655% as at December 31, 2023 and 2022.
Please refer to Note32 for details of pledge and security for borrowings.

XVIII. Note payable and accounts payable

Note payable and accounts payable
Note payable From operations Accounts payable From operations - non-related parties From operations - related parties	December 31,2023 $ 4 $ 333,077 7,560 $ 340,637	March 31,2022
			$ 27 $ 283,695 1,705 $ 285,400

XIX. Other liabilities

Other liabilities
Current Other payables Wages, salaries, and bonuses payable Expenses payable Equipment payment payable Employee remuneration payable Processing expense payable Labor and health insurance premium and pension payable Others	December 31,2023 $ 76,999 27,884 23,286 21,239 21,133 13,535 13,128 $ 197,204	March 31,2022
			$ 72,553 32,449 18,222 42,180 15,525 12,789 12,614 $ 206,332

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XX.

Unearned revenue Government grants (Note 27) Other current liabilities Refund liabilities Payments on behalf of others Temporary receipts Non-current Other liabilities Deferred credits- unrealized gross profit from the sale of long-term investment Guarantee deposits received Provisions Non-current Employee benefits (Note) Balance at January 1, 2023 Increase for the current year Used in the current year Balance at December 31, 2023 Balance at January 1, 2022 Increase for the current year Used in the current year Balance at December 31, 2022	$ 9,746 $ 5,661 4,595 550 $ 10,806 $ 3,834 204 $ 4,038 December 31,2023 $ 19,894	$ 11,375 $ 6,652 3,424 314 $ 10,390 $ 3,834 204 $ 4,038 March 31,2022	$ 11,375 $ 6,652 3,424 314 $ 10,390 $ 3,834 204 $ 4,038 March 31,2022
		$ 18,444 Employee benefits
		( (	$ 18,444 3,022 1,572) $ 19,894 $ 16,807 3,799 2,162) $ 18,444

Note: Provision for employee benefits liability is the estimate of employee long-term service bonuses (medals).

XXI. Post-employment benefit plans

(I) 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.

(II) Defined benefit plan

The defined benefit plan adopted by the Company in accordance with the Labor Standards Act is the defined benefit plan under the management of the government of R.O.C. 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 an amount, which equals to 2% of each employee’ total

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monthly salary and wage, which is deposited by the Pension Fund Monitoring Committee in the pension account with the Bank of Taiwan in the name of the committee. Before the end of each year, if the balance in the pension account assessed is inadequate to pay for the retirement benefits for employees who meet the retirement requirements in the following year, the Company will contributes an amount to make up for the difference in a lump sum by the end of March of the following year. The pension account is managed by the Bureau of Labor Funds, Ministry of Labor; the Company has no right to influence the investment management strategy.

The amounts included in the standalone balance sheets in respect of the Company’s defined benefit plan are as follows:

Present value of defined benefit obligation Fair value of plan assets Net defined benefit liability	December31,2023 $ 89,008 (73,945) $ 15,063	March31,2022	March31,2022
	(	(	$ 91,213 72,351) $ 18,862

The changes in net defined benefit liability:

	Present value of	Present value of
	defined benefit		Fair value of			Net defined
	obligation		plan assets			benefit liability
From January 1, 2022	$	103,556	($	65,651)		$	37,905
servicing costs
Service cost for the
current year		599			-		599
Interest expense (income)		689	(	474)			215
Recognized in loss (profit)		1,288	(	474)			814
Remeasurement
Return on plan assets
(except for the
amount included in
the net interest)		-	(	4,227 )		(	4,227 )
Actuarial losses
- Changes in
financial
assumptions	(	3,895 )			-	(	3,895 )
- Experience
adjustments		92			-		92
Recognized in other
comprehensive
income	(	3,803)	(	4,227)		(	8,030)
Contributions from the
employer		-	(	11,827)		(	11,827)
Benefits paid	(	9,828)		9,828			-
March 31, 2022		91,213	(	72,351)			18,862
servicing costs

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	Present	value of
	defined benefit			Fair value of			Net defined
	obligation			planassets			benefitliability
Service cost for the
current year		356				-		356
Interest expense (income)		1,136	(		917)			219
Recognized in loss (profit)		1,492	(		917)			575
Remeasurement
Return on plan assets
(except for the
amount included in
the net interest)		-	(		620 )		(	620 )
Actuarial losses
- Changes in
financial
assumptions		579				-		579
- Experience
adjustments		311				-		311
Recognized in other
comprehensive
income		890	(		620)			270
Contributions from the
employer		-	(		4,644)		(	4,644)
Benefits paid	(	4,587)			4,587			-
December 31, 2023	$	89,008	(	$	73,945)		$	15,063

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Due to the pension plans under the Labor Standards Act, the Company is exposed to the following risks:

Investment risk: The Bureau invests labor pension funds in domestic (foreign) equity securities, debt securities, and bank deposits on its own use and through agencies entrusted. However, the Company’s amount allocated to plan assets is calculated based on the interest rate not lower than the local bank's interest rate for 2-year time deposits.
Interest risk: A decrease in the interest rate in the government bonds will increase the present value of the defined benefit obligation; however, the return on the debt investment through the plan assets will also increase, and the increases will partially offset the effect of the net defined benefit liability.
Salary risk: The present value of the defined benefit obligation is calculated with reference to the future salaries of the participants in the plan. As such, an increase in the salary of the participants in the plan 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 critical assumptions made on the measurement date are as follows:

measurement date are as follows:
Discount rate Salary adjustment rate	December31,2023 1.20% 2.50%	March31,2022
		1.30% 2.50%

If each of the critical actuarial assumptions is subject to reasonably possible changes, when all other assumptions remain unchanged, the amounts by which the present value of the defined benefit obligation would increase (decrease) are as follows:

follows:
Discount rate 0.25% increase 0.25% decrease Salary adjustment rate 0.5% increase 0.5% decrease	December31,2023 ($ 1,424) $ 1,469 $ 2,822 ($ 2,688)	March31,2022
	( (	( (	$ 1,551) $ 1,642 $ 3,192 $ 3,010)

As actuarial assumptions may be correlated, it is unlikely that only a single assumption would occur in isolation of one another, so the sensitivity analysis above may not reflect the actual changes in the present value of the defined benefit obligation.

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December 31, 2023

March 31, 2022

		December31,2023	March31,2022	March31,2022
XXII.	The expected contributions to the plan for the following year The weighted average duration of the defined benefit obligation Equity (I) Ordinary shares Authorized shares (in thousand) Authorized capital Issued and paid shares (in thousand) Issued capital	$ 3,970 8.9 years December 31,2023 700,000 $ 7,000,000 300,621 $ 3,006,223	$ 3,980 9.6 years March 31,2022
				500,000 $ 5,000,000 300,621 $ 3,006,223

The ordinary shares issued, with a par value of NT$10 per share, are entitled to one voting right per share and to the right to receive dividends.

The Company’s authorized capital was increased from NT$5,000,000 thousand to NT$7,000,000 thousand according to the approval of the shareholders’ meeting through resolution on June 15, 2010, and the authorized capital change registration was completed on June 9, 2023. Said change of authorization capital registration has been approved by the competent authority on file.

(II) Capital surplus

Capital surplus
May be used to offset a deficit, distributed as cash dividends or transferred to share capital (1) Shares premium from issuance Premium of corporate bond conversion The difference between the equity price and the book value of acquisition or disposal of subsidiary May be used to offset a deficit only Changes in the net equity of subsidiaries and associates accounted for using equity method (2) Treasury stock transactions Expired employees share options Others (Note)	December 31,2023 $ 6 28,983 ( 3,064 ) 83,622 37,403 16,410 81,901 $ 245,261	March 31,2022
		$ 6 28,983 ( 3,064 ) 82,234 37,403 16,410 81,901 $ 243,873

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Note: Reclassified from the difference in the repurchase of the convertible corporate bonds.

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 only once a year).
This type of capital surplus is the effect of equity transactions recognized due to changes in the Company’s equity or the adjustment to the capital surplus of the subsidiary accounted for using the equity method by the Company when the Company has not actually acquired or disposed of the equity of the subsidiary.

The changes in capital surplus for the current period are as follows:

The changes in capital surplus for the current period are	as follows:	as follows:
Balance at January 1, 2023 Adjustment to the capital surplus of associates accounted for using the equity method Changes in ownership interests of subsidiaries recognized Balance at December 31, 2023 Balance at January 1, 2022 Adjustment to the capital surplus of associates accounted for using the equity method Balance at December 31, 2022	Changes in the net equity of subsidiaries and associates accounted for using the equitymethod
		$ 82,234 145 1,243 $ 83,622 $ 82,000 234 $ 82,234

(III) Retained earnings and dividends policy

Per the Company’s Articles of Incorporation regarding the earnings distribution policy, the Company's earnings distribution or loss compensation shall be proposed by the board of directors after the end of each semi-annual fiscal period. In the case of issuance of new shares, it shall be submitted to the shareholders’ meeting for a resolution. Any cash distribution of dividends, profits, legal reserves or capital surplus, either in whole or in part, must be resolved in a board meeting with more than two-thirds of the board members present, voted in favor by more than half of the attending directors and reported in the upcoming shareholders’ meeting.

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According to the earnings distribution policy under the Company’s Articles of Incorporation, if there is a surplus as per the annual financial statements, the Company shall pay all taxes in accordance with the law and compensate the cumulative deficit first, and then allocate 10% as a legal reserve in accordance with the law unless it has reached the same amount of the Company’s paid-in capital. Where there is any remaining balance, the Company shall allocate amount as or reverse the special reserve according to laws and regulations. If there is still any balance left, together with the cumulative undistributed earnings, the board of directors shall draft an earnings distribution proposal and submit it to the shareholders’ meeting to resolve the distribution of shareholders’ dividends. For information on the policy of the employee compensation and remuneration of directors and supervisors as in the Company's Articles of Incorporation, refer to Note 24(8) regarding employee compensation and remuneration of directors.

In addition, according to the Company's Articles of Incorporation, the Company adopts a dividend policy that allows the board of directors to propose dividends after taking into consideration its future capital requirements, long-term financial plans, and shareholders' needs for cash inflow. Profit sharing to shareholders can be paid in cash or shares, provided that the cash portion does not amount to less than 10% of total profit sharing.

Appropriation of earnings to legal reserve shall be made until the reserve equals the Company’s paid-in capital. Legal reserves may be used to offset the deficit. 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.

When the Company provides the special reserve for the net amount of other equity deduction accumulated in the previous period, if the undistributed earnings in the previous period is not sufficient for provision, sum of the net profit after tax of the period plus the items other than the net profit after tax included in the undistributed earnings of the same period, will be provided from.

The earnings distribution proposals for 2022 and 2021 were approved by the general shareholders’ meetings held on May 29, 2023 and June 8, 2022, respectively, and the earnings distribution proposals were as follows:

Appropriated as statutory reserves Appropriated as (reversed) special reserve Cash dividends		2022 $ - $ 8,858 $ -		2021
			(	$ 71,480 $ 18,292) $ 300,622

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2022 2021 Cash dividend per share (NTD) $ - $ 1.00

The Company had a deficit to be compensated for 2022, such that the board of directors resolved a decision not to distribute dividends on February 22, 2023, and resolved a decision to distribute the 2021 cash dividends on February 22, 2022. The remaining earnings distribution items for 2021 have been resolved by the general shareholders’ meeting on May 29, 2023 and June 8, 2022, respectively.

The 2023 earnings distribution proposal approved by the Company's board of directors on February 21, 2024 is as follows:

directors on February 21, 2024 is as follows:
Reversed special reserve Cash dividends Cash dividend per share (NTD)		2023
	(	$ 8,858) $ 60,124 $ 0.2

The above cash dividends distribution proposal has been approved by the board of directors, and the rest is pending a resolution by the annual general shareholders' meeting scheduled to be held on May 30, 2024.

(IV) Special reserves

) Special reserves
Opening balance Appropriated as special reserve Amount debited to other equity items Reversed special reserve Other equity items debited to the amount reversed Closing balance		2023 $ 37,523 8,858 - $ 46,381		2022
			(	$ 55,815 - 18,292) $ 37,523

(V) Other items of equity
Exchange Differences in Translating the Financial Statements of Foreign

Operations

Operations
Opening balance Incurred in the current year Share of subsidiaries and associates accounted for using equity method Relevant income taxes Closing balance	2023 ( $ 19,603 ) ( 4,742 ) 948 ($ 23,397)	2022
		( $ 22,851 ) 4,060 ( 812) ($ 19,603)

Unrealized Gain (Loss) on Financial Assets at Fair Value Through Other Comprehensive Income
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Opening balance Incurred in the current year through other comprehensive income Share of subsidiaries accounted for using equity method Relevant income taxes Other comprehensive income for the current year Closing balance		2023 $ 26,780) 14,841 1,069 2,968) 12,942 $ 13,838)		2022
	( ( (		$ 416 ( 29,815 ) ( 3,344 ) 5,963 (27,196) ($ 26,780)

XXIII. Revenue

XXIII.	Revenue
XXIV.	2023 Sales revenue $ 2,003,883 Disaggregation of revenue from product contract revenue 2023 Sales revenue is broken down by main products Si component $ 1,303,665 Compound semiconductor components 696,666 Others 3,552 $ 2,003,883 (I) Contract balance December 31, 2023 March 31,2022 Accounts receivable (Note 10) $ 647,499 $ 616,224 Net income (loss) of the continuing operations for the period Net income (loss) for the period is from the following items: (I) Net amount of other gains (losses) 2023 Gains on disposal of property, plant and equipment $ 520 (II) Interest income 2023 Cash in banks $ 9,694		2022
			$ 2,203,396 2022
		$ 1,367,480 827,289 8,627 $ 2,203,396 From January 1, 2022
				$ 1,040,975 2022
				$ 452 2022
				$ 3,914

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Financial assets at amortized cost imputed interest on financing	347 178 $ 10,219	149 168 $ 4,231

(III) Other income

) Other income
			2023		2022
Subsidy income		$	3,729	$	2,288
Dividend revenue			2,494		5,814
Rent income			720		720
Others			2,640		3,836
		$	9,583	$	12,658
) Other gains or losses
			2023		2022
Net foreign exchange gains		$	9,867	$	94,283
Loss from disposal of
subsidiary	(		24 )		-
Net losses on financial assets at
FVTPL	(		7,855 )	(	118,607 )
Miscellaneous expenditure	(		258)	(	4,261)
		$	1,730	($	28,585)
Financial costs
			2023		2022
Interest on bank loans		$	10,356	$	9,428
Interest on lease liabilities			1,492		1,527
		$	11,848	$	10,955
) Depreciation and amortization
			2023		2022
Property, plant, and equipment		$	252,316	$	227,084
right-of-use asset			3,490		3,750
Intangible asset			2,376		1,323
Total		$	258,182	$	232,157
An analysis of depreciation by
function
Operating costs		$	226,594	$	201,623
Operating expenses			29,212		29,211
		$	255,806	$	230,834
An analysis of amortization by
function
Operating costs		$	9	$	9
Operating expenses			2,367		1,314
		$	2,376	$	1,323

(IV) Other gains or losses

(V) Financial costs

(VI) Depreciation and amortization

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(VII) Employee benefits expense

I) Employee benefits expense
Short-term employee benefits Long-term employee benefits Post-employment benefits (Note 21) Defined contribution plans Defined benefit plan Total employee benefits expense An analysis by function Operating costs Operating expenses		2023 $ 490,870 3,022 17,764 575 $ 512,231 $ 344,083 168,148 $ 512,231		2022
				$ 485,458 3,799 18,362 814 $ 508,433 $ 361,010 147,423 $ 508,433

(VIII) Employees’ compensation and remuneration of directors

The Articles of Incorporation of the Company stipulate that the employees’ compensation and remuneration of directors shall be appropriated at the rates from 5%–15% and no higher than 5%, respectively, of the net income before taxes and net of employees’ compensation and remuneration of directors. However, the net loss before tax is made in 2023 and 2022, and thus the employees’ remuneration and directors’ remuneration are not estimated.

The employees’ remuneration and directors’ remuneration for 2021 was resolved by the board of directors on February 22, 2022 as below:

Amount

Amount
Employee compensation Directors' remuneration	2021
	Cash $ 61,702 11,580	Stocks
		$ - -

If there is a change in the proposed amounts after the annual standalone financial statements were authorized for issue, the differences are recorded as a change in accounting estimate and will be reflected in the following year.

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

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

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(IX) Foreign exchange gains or losses

) Foreign exchange gains or losses
Foreign exchange gains Total foreign exchange losses Net profit or loss		2023 $ 93,440 83,573) $ 9,867		2022
	(		(	$ 191,398 97,115) $ 94,283

XXV. Income tax

(I) Income tax recognized in profit or loss

Major components of tax expense (income) were as follows:

				2023		2022
	Tax currently payable
	Incurred in the current year		$	-	$	16,614
	Levied on unappropriated
	earnings			-		3,967
	Prior years adjustment			1,010	(	39,354)
				1,010	(	18,773 )
	Deferred tax
	Incurred in the current year	(		16,356)		38,299
	Income tax (benefit) expense
	recognized in profit or loss	(	$	15,346)	$	19,526
	The adjustment to accounting income and income tax (profit)				expenses is as follows:
				2023		2022
	Net loss before tax of the
	current year	(	$	147,300)	($	161,979)
	Income tax expense calculated
	based on statutory tax rate
	for net income (loss) before
	tax	(	$	29,460 )	( $	32,396 )
	Permanent difference	(		21,589 )		57,149
	Levied on unappropriated
	earnings			-		3,967
	Loss credit and temporary
	difference			34,693		34,127
	Adjustments to income tax
	expenses of prior years			1,010	(	39,354)
	Income tax (benefit) expense
	recognized in profit or loss	(	$	15,346)	$	19,526
(II)	Income tax recognized in other comprehensive income
				2023		2022
	Deferred tax
	Incurred in the current year
	- Translation of foreign
	operations		$	948	( $	812 )
	- Unrealized gain (loss) on
	financial assets at
	FVTOC	(		2,968)		5,963
	Income tax recognized in other
	comprehensive income	(	$	2,020)	$	5,151

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(III) Current tax assets and liabilities

) Current tax assets and liabilities
Current tax assets Tax refund receivable Current tax liabilities Income tax payable	December31,2023 $ 952 $ -	March31,2022
			$ - $ 20,236

(IV) Deferred tax assets and liabilities

The changes in the deferred tax assets and liabilities are as follows:

2023

2023
Deferred tax assets Temporary difference Impairment losses, including loss allowance Financial assets at FVTOCI	Openingbalance	Recognized in profit or loss ( $ 1,241 ) -	Recognized in other comprehensive income	Closingbalance $ 27,072 ( 5,375 )
	$ 28,313 ( 2,407 )		$ - ( 2,968 )

(Continued on next page)

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(Continued from previous page)

Provisions Refund liabilities Defined benefit pension plan Property, plant, and equipment Associate Exchange differences on translating the financial statements of foreign operations Unrealized exchange losses Investment/R&D credit Deferred tax liabilities Unrealized foreign exchange gains Financial assets at FVTPL 2022 Deferred tax assets Temporary difference Impairment losses, including loss allowance Financial assets at FVTOCI Provisions Refund liabilities Defined benefit pension plan Property, plant, and equipment Associate Exchange differences on translating the financial statements of foreign operations Loss carryforwards	Openingbalance $ 3,689 2,618 ( 762 ) 1,363 ( 2,244 ) 4,899 - - $ 35,469 $ 1,778 877 $ 2,655 Openingbalance $ 22,737 ( 8,370 ) ( 3,642 ) 4,698 1,441 1,363 3,503 5,711 27,441 53,846 $ 81,287	Recognized in profit or loss $ 290 ( 1,486 ) ( 814 ) ( 9 ) 4,189 - 1,061 12,236 $ 14,226 ( $ 1,778 ) ( 352) ($ 2,130) Recognized in profit or loss $ 5,576 - 7,331 ( 2,080 ) ( 2,203 ) - ( 5,747 ) - 2,877 ( 53,846) ($ 50,969)	Recognized in other comprehensive income $ - - - - - 948 - - ($ 2,020) $ - - $ - Recognized in other comprehensive income $ - 5,963 - - - - - ( 812) 5,151 - $ 5,151	Closingbalance	Closingbalance
				$ 3,979 1,132 ( 1,576 ) 1,354 1,945 5,847 1,061 12,236 $ 47,675 $ - 525 $ 525 Closingbalance
	( (	( ( ( ( (	(	( ( (	$ 28,313 2,407 ) 3,689 2,618 762 ) 1,363 2,244 ) 4,899 35,469 - $ 35,469

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Deferred tax liabilities Unrealized foreign exchange gains $ 5,751 ( $ 3,973 ) $ - $ 1,778 Financial assets at FVTPL 9,574 ( 8,697 ) - 877 $ 15,325 ( $ 12,670 ) $ - $ 2,655

(V.) Deductible temporary difference of deferred tax assets not recognized in the standalone balance sheet

December 31, 2023 March 31, 2022 Deductible temporary difference Impairment losses, including loss allowance $ 15,746 $ 15,746

(VI) Income tax assessments

The Company’s profit-seeking enterprise income tax returns up to 2020 had

been examined and approved by the tax authorities.

XXVI. Loss per share

Unit: NT$ Per Share

			Unit:	NT$ Per Share
Basic loss per share Diluted loss per share		2023 $ 0.44) $ 0.44)		2022
	( (		( (	$ 0.60) $ 0.60)

The loss and weighted average number of ordinary shares outstanding in calculating loss per share were as follows:

Net loss of the current year

Net loss of the current year
Net loss in the computation of diluted loss per share Shares Weighted average number of ordinary shares used in the computation of basic and diluted loss per share		2023 2022 $ 131,954) ($ 181,505) Unit: Thousand Shares 2023 2022 300,621 300,621	2022
	(
			300,621

XXVII. Government grants

As of December 31, 2023, the Company has obtained a government loan of NT$282,370 thousand with preferential interest rates under the Action Plan for Welcoming Overseas Taiwanese Businesses to Return to Invest in Taiwan for capital expenditure and purchase of equipment. The loan will be repaid in installments over a period of five to seven years. The fair value of the loan is estimated to be NT$278,233

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thousand based on the market interest rate of 0.87% to 2.00% when the loan was taken out. The difference between the amount obtained and the fair value of the loan is in the amount of NT$4,137 thousand as a government low-interest loan grant and recognized as unearned revenue. The unearned revenue is reclassified to profit or loss over the useful life of the relevant assets. Other income recognized by the Company for 2023 and 2022 is NT$971 thousand and NT$816 thousand, respectively, and the loan interest expenses recognized are NT$2,623 thousand and NT$1,528 thousand, respectively.

If the Company fails to meet the requirements of the project loan regulations during the loan term and the National Development Fund has to stop the loan, and when the processing fee should be charged, the Company shall pay at the initial agreed interest rate plus the annual interest rate.

In addition, the Company has obtained a grant of NT$3,894 under the Demonstration and Promotion Subsidy Program for the Energy Conservation Performance Guarantee Project and achieved the promised energy saving rate of 70% in July 2022 in the project proposal. The remaining grant of NT$9,088 thousand was received. As of December 31, 2023, the Company has recognized the government grant of NT$8,750 thousand in deferred income.

XXVIII. Partial disposal of investments in subsidiaries - no impact on control

In July 2023, the Company failed to subscribe for the subsidiary - Keeper Technology Co., Ltd. in proportion to its shareholding, resulting in a decrease in shareholding from 21.43% to 19.02%.

Since the transaction above did not change the control of the Company over the subsidiary, the Group treated it as an equity transaction. Please refer to Note 30 to the Company's 2023 consolidated financial statements for a description of part of its disposal of Keeper Technology Co., Ltd..

XXIX. Capital risk management

In accordance with the overall business environment and the Company’s future development, the Company’s capital structure is regularly reviewed by the main management personnel in consideration of external competition, changes in the environment, and other factors. The review includes consideration for various types of capital costs and relevant risks to determine an appropriate capital structure of the Company. The purpose is to satisfy the Company’s requirements for working capital, research and development expenses, and dividend expenditures in the future, while ensuring that the Company can continue to operate, give back to shareholders, and take into account the interests of other stakeholders, and maintaining the best capital structure to enhance shareholders’ value on a long term.

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The capital structure of the Company consists of net debt (borrowings less cash and cash equivalents) and equity of the Company (comprising share capital, capital surplus, retained earnings, and other equity items).

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

The key management personnel of the Company reviews the capital structure annually. As part of this review, the key management personnel considers the cost of capital and the risks associated with each class of capital. Under the suggestions of the key management personnel, the Company may pay dividends, issue new shares, buy back shares, and issue new debts or repay old debts to balance the overall capital structure. XXX. Financial instruments

(I) Fair value—financial instruments not at fair value

The carrying amount of the Company’s financial assets and liabilities and lease payables measured at amortized cost was close to their fair value in the financial statements at the end of the financial reporting period.

(II) Fair value—financial instruments at fair value on a recurring basis
Degree of fair value measurements

December 31, 2023

December 31, 2023
Financial assets at FVTPL Domestic listed stocks Gold passbook Total Financial assets at FVTOCI Investment in equity instruments Domestic stocks listed on TWSE/TPEx and emerging stock markets Domestic unlisted stocks Total March 31, 2022 Financial assets at FVTPL Domestic listed stocks Gold passbook Total Financial assets at FVTOCI Investment in equity instruments Domestic stocks listed on TWSE/TPEx and emerging stock markets Domestic unlisted stocks Total	Level 1 $ 18,368 15 $ 18,383 $ 41,871 - $ 41,871 Level 1 $ 24,233 15 $ 24,248 $ 27,030 - $ 27,030	Level 2 $ - - $ - $ - - $ - Level 2 $ - - $ - $ - - $ -	Level 3 $ - - $ - $ - 8,827 $ 8,827 Level 3 $ - - $ - $ - 8,827 $ 8,827	Total
				$ 18,368 15 $ 18,383 $ 41,871 8,827 $ 50,698 Total
				$ 24,233 15 $ 24,248 $ 27,030 8,827 $ 35,857

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Financial liability at FVTPL Derivatives $ - $ 344 $ - $ 344

There were no transfers between Level 1 and Level 2 fair value in 2023 and 2022.

Valuation techniques and inputs applied for Level 2 fair value measurement

Class of financial instruments Derivatives - forward foreign exchange contracts	Valuation technique and inputs
	Discounted cash flow method: Future cash flows are estimated based on the observable forward exchange rates at the end of the period and the exchange rates and interest rates specified in the contract and discounted at a discount rate that can indicate each counterparty’ credit risk.

Reconciliation of Level 3 fair value measurements of financial instruments

2023

2023
Financial asset Opening and closing balance 2022 Financial asset Opening balance Purchase Recognized in profit or loss (other gains or losses) Closing balance	Financial assets at FVTPL Equityinstrument $ - Financial assets at FVTPL Equityinstrument $ 87,201 - (87,201) $ -	Financial assets at FVTOCI
		Equityinstrument
		$ 8,827 Financial assets at FVTOCI
		Equityinstrument
	(		$ 6,580 2,247 - $ 8,827

Valuation techniques and inputs applied for Level 3 fair value measurement

Investments in domestic and foreign unlisted equity are estimated by the market approach based on the transaction price of comparable targets, and the difference between the evaluation target and the comparable target is considered to estimate the value of the target evaluated using an appropriate multiplier.

December 31, 2023 March 31, 2022 Price-book ratio 3.51 4.09

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Liquidity Discounts 30% (III) Categories of financial instruments

30%

Financial asset Financial assets as at FVTPL Financial assets designated as at FVTPL Financial assets at amortized cost (Note 1) Financial assets at FVTOCI Investment in equity instruments Financial liability Financial assets as at FVTPL Financial assets designated as at FVTPL Amortized cost (Note 2)	December 31,2023 $ 18,383 1,800,346 50,698 - 1,100,381	March 31,2022
		$ 24,248 1,872,550 35,857 344 1,117,488

Note 1: The balances include financial assets measured at amortized cost, which comprise cash and cash equivalents, notes receivable, accounts receivable (including from related parties), other receivables (including from related parties), and refundable deposits.
Note 2: The balances included financial liabilities measured at amortized cost, which comprise short-term borrowings, notes payable, accounts payable (including to related parties), other payables, current portion of long-term borrowings, unearned revenue, long-term borrowings, long-term deferred revenue, and guarantee deposits received.
(IV) Financial risk management objective and policies

The Company's main financial instruments include equity investment, accounts receivable, accounts payable, borrowings and lease liabilities. The Company's financial management department provides services to various business units, coordinates the operations in the domestic and international financial markets, and supervises and manages the financial risks related to the Company's operations by analyzing internal risk reports based on the degree and breadth of risks. These risks include market risk (including currency risk, interest rate risk and other price risks), credit risk and liquidity risk.

The Company uses derivative financial instruments to avoid risk exposure to mitigate the impact of these risks. The use of derivative financial instruments is regulated by the policies adopted by the Company's board of directors, which are written principles for exchange rate risk, interest rate risk, credit risk, the use of derivative financial instruments and non-derivative financial instruments, and the

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investment of remaining working capital. Compliance with policies and exposure limits is being reviewed by the internal auditors continuously. The Company does not trade financial instruments (including derivative financial instruments) for speculative purposes.

1. Market risk

The main financial risks for the Company’s operating activities are the risk of changes in foreign currency exchange rates (see (1) below) and the risk of changes in interest rates (see (2) below). The Company engages in various derivative financial instruments to manage foreign currency exchange rate risk, interest rate risk, and other price risks.

The Company's exposure to the market risk of financial instruments and its management and measurement methods for the risk exposure have remained unchanged.

(1) Exchange rate risk

The Company is engaged in sale and purchase transactions denominated in foreign currencies, which has caused the Company to be exposed to the risk of exchange rate fluctuations. Approximately 87.55% of the Company's sales are not denominated in the functional currency, and approximately 60.51% of the cost is not denominated in the functional currency. The Company's management of the exposure to the exchange rate risk is to use foreign currency options contracts to manage risks within the scope permitted by the policy.

For the carrying amount of monetary assets and monetary liabilities denominated in non-functional currencies at the balance sheet date, please refer to Note 34.

Sensitivity analysis

The Company was mainly affected by the fluctuations in the exchange rates of USD, JPY, and CNY.

The following table details the Company’s sensitivity analysis when the New Taiwan dollar (functional currency) increases and decreases by 1% against each relevant foreign currency. The sensitivity to a 1% change in New Taiwan dollars is used when reporting foreign currency risk internally to key management personnel and also represents the management’s assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis only included monetary items in foreign currencies in circulation, and the year-end translation was adjusted

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with a 1% change in the exchange rates. The positive numbers in the table below indicate the amount by which the net income before tax will be reduced when the New Taiwan dollar appreciates by 1% against the relevant currencies; when the New Taiwan dollar depreciates by 1% against the relevant foreign currencies, the net income before tax will be the negative number of the same amount.

==> picture [354 x 25] intentionally omitted <==

(i) Mainly derived from the Company's USD-denominated receivables and payables still outstanding at the balance sheet date, against which a cash flow hedge has not been conducted.
(ii) Mainly derived from the Company's JPY-denominated borrowings and payables still outstanding at the balance sheet date, against which a cash flow hedge has not been conducted.
(iii) Mainly derived from the Company's CNY-denominated receivables and payables still outstanding at the balance sheet date, against which a cash flow hedge has not been conducted.

Sales denominated in USD are seasonal, so the exposure to the foreign currency risk at the balance sheet date cannot reflect the risk exposure throughout the year.

(2) Interest rate risk

Because individual entities within the Company borrow funds at fixed and floating interest rates at the same time, the interest rate risk risks arise. The Company manages the interest rate risk by maintaining an appropriate combination of fixed and floating interest rates.

The carrying amounts of the Company’s financial assets and financial liabilities with exposure to the interest rate risk at the balance sheet date are as follows:

are as follows:
Fair value interest rate risk -Financial assets -Financial liabilities Cash flow interest rate risk -Financial assets -Financial liabilities	December31,2023 $ 780,000 28,210 352,037 523,682	March31,2022
		$ 503,524 54,629 735,253 558,675

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Sensitivity analysis

The sensitivity analysis below is determined based on the exposure to the interest rate risk of derivatives and non-derivatives at the balance sheet date. For liabilities with floating interest rates, the analysis method is based on the assumption that the amount of liabilities outstanding at the balance sheet date is in outstanding throughout the reporting period. The sensitivity to a 1% change in interest rate is used when reporting the interest rate risk internally to key management personnel and also represents the management’s assessment of the reasonably possible change in interest rates.

If the interest rate increased/decreased by 1% and all other variables remain unchanged, the Company’s net income before tax for 2023 and 2022 would have decreased/increased by NT$1,716 thousand and NT$1,766 thousand, respectively, mainly due to the Company’s borrowings with variable interest rates.

(3) Other price risk

The Company's exposure to the equity price risk is due to the investment in the listed equity securities. The management of the Company manages the risk by holding investment portfolios with different risk factors. The Company's equity price risk is mainly concentrated on Taiwan Stock Exchange’s equity instruments in specific industries.

Sensitivity analysis

The sensitivity analysis below is based on the equity price risk exposure at the balance sheet date.

If the equity price increased/decreased by 1%, the profit or loss before tax for 2023 and 2022 would have increased/decreased by NT$184 thousand and NT$242 thousand due to the increase in the fair value of financial assets at FVTPL.

Other comprehensive income before tax for 2023 and 2022 would have increased/decreased by NT$419 thousand and NT$270 thousand due to changes in the fair value of financial assets at FVTOCI.

The Company's sensitivity to price risks decreased for the current year, mainly due to the decrease in the positions exposed to other price risks.

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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 balance sheet date, the Company’s maximum exposure to credit risk which will cause a financial loss to the Company due to failure of counterparties to perform an obligation and financial guarantees provided by the Company could arise from:

(1) The carrying amount of the financial assets recognized in the standalone balance sheet.
(2) The amount of contingent liabilities arising from the financial guarantee provided by the Company.

The policy adopted by the Company is to conduct transactions only with reputable counterparties, and obtain sufficient guarantees under necessary circumstances to reduce the risk of financial losses due to defaults. The Company only conducts transactions with companies whose ratings are equal to or higher than the investment grade Such information is provided by independent rating agencies; if such information is not available, the Company will refer to other publicly available financial information and mutual transaction records to rate its major customers. The Company continuously monitors credit risk and the credit rating of its counterparties, and distributes the total transaction amount to customers with qualified credit ratings, and controls the exposure to credit risk through the counterparty credit limits that are reviewed and approved by the financial management department every year.

In order to mitigate the credit risk, the management of the Company assigns a dedicated team responsible for the determination of credit limits, credit approval, and other monitoring procedures to ensure that appropriate actions have been taken in the recovery of overdue receivables. In addition, the Company reviews the recoverable amount of the receivables one by one at the balance sheet date to ensure that the appropriate impairment loss is recognized for uncollectible receivables. With that, the management believes the Company’s credit risk has been significantly reduced.

The credit risk on liquid funds and derivatives is not high because the counterparties are banks with high credit ratings assigned by international credit-rating agencies.

The Company's customer base is large and unrelated, so the concentration of credit risk is not high.

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3. Liquidity risk

The Company manages and maintains sufficient cash and cash equivalents to support its operations and mitigate the impact of cash flow fluctuations. The management of the Company monitors the use of the bank financing facilities and ensures compliance with the terms of the borrowing terms.

Bank borrowings were an important source of liquidity for the Company. As of December 31, 2023 and 2022, for the Company’s unutilized credit facilities, please refer to (2) below for description of financing facilities.

(1) Liquidity and interest rate risk tables for non-derivative financial liabilities The remaining contractual maturity analysis of non-derivative financial liabilities was based on the earliest date at which the Company might be required to repay and was compiled based on the undiscounted cash flows of financial liabilities (including principal and estimated interest). Therefore, the bank borrowings with a repayment on demand clause were included in the earliest time period, regardless of the probability of exercise of the right by banks. The maturity analysis of other non-derivative financial liabilities was compiled in accordance with the agreed repayment date.

December 31, 2023

December 31, 2023
Non-derivative financial liabilities Non-interest-bearing liabilities Note payable and accounts payable Other payables (Note) Floating interest rate instruments Fixed interest rate instruments lease liabilities	Lessthan 1year $ 340,641 80,706 177,075 28,210 4,689 $ 631,321	Over 1year
			$ - 346,607 - 104,776 $ 451,383

Further information on the analysis of lease liabilities maturity is as follows (undiscounted total amount):

lease liabilities		Less than One Year		1-5 Years	5-10 Years	5-10 Years		10-15 Years		15-20 Years		Over 20 Years
		$ 4,689		$ 14,365		$ 16,193		$ 16,193		$ 16,193		$ 41,832

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March 31, 2022

March 31, 2022
Non-derivative financial liabilities Non-interest-bearing liabilities Note payable and accounts payable Other payables (Note) Floating interest rate instruments Fixed interest rate instruments lease liabilities	Lessthan 1year $ 285,427 74,964 136,255 54,629 4,362 $ 555,637	Over 1year
			$ - - 422,420 - 107,904 $ 530,324

Further information on the analysis of lease liabilities maturity is as follows (undiscounted total amount):

lease liabilities		Less than One Year		1-5 Years	5-10 Years	5-10 Years		10-15 Years		15-20 Years		Over 20 Years
		$ 4,362		$ 14,255		$ 16,193		$ 16,193		$ 16,193		$ 45,070

Note: The other payables mentioned above do not include salaries and bonuses payable, pensions payable, insurance premiums payable, directors' remuneration payable, and employee compensation payable.

The amount of floating interest rate instruments for the aforementioned non-derivative financial assets and liabilities will change due to the difference between the floating interest rate and the interest rate estimated at the balance sheet date.

The financial guarantee contract amount above is the maximum amount that the Company may have to pay to fulfill the guarantee obligation if the holder of the financial guarantee contract asks the guarantor to pay for the full guarantee amount. However, based on the expectations at the balance sheet date, the Company believes that it is unlikely that such contract payments will be paid.

70 -

(2) Financing facilities

December 31, 2023

March 31, 2022

Unsecured bank borrowings facility (review every year) - Amount used - Amount unused Secured bank borrowings facility - Amount used - Amount unused	$ 38,460 965,065 $ 1,003,525 $ 515,122 534,878 $ 1,050,000	$ 71,029 932,521 $ 1,003,550 $ 543,882 506,118 $ 1,050,000

XXXI. Related party transactions

Details of transactions between the Company and related parties are as follows.

(I) Related party name and category

Related Party Name Related Party Category Long Benefit Investment Co., Ltd. (Long Subsidiary Benefit) TEK Holding Co., Ltd. (TEK) Subsidiary Keeper Technology Co. Ltd. (Keeper Subsidiary Technology) Yuanmao Opto-electronic Technology Sub-subsidiary (Wuhan) Co., Ltd. (Yuanmao) Associate

Coretech Optical Co., Ltd. Hsinjing Holding Co., Ltd.

Substantive related party Epistar Corporation

Lextar Electronics Corporation

Prolight Opto Technology Corporation best Epitaxy Manufacturing Co. Ltd.

Lextar Electronics (Chuzhou) Corp.

iReach Corporation Unikorn Semiconductor Corp.

Associate by investment using the equity method Associate by investment using the equity method

Its parent company is a director of the Company. Its parent company is a director of the Company. Its parent company is a director of the Company.

The parent company is a director of the Company (was a related party until June 2023)

Its parent company is a director of the Company.

The parent company is a director of the Company (was a related party until June 2023)

Its parent company is a director of the Company.

(Continued on next page)

71 -

(Continued from previous page)

Related Party Name Lee, Biing-Jye

Raymond Sheu Wen-Hu Wang

Related Party Category Key management (related parties before December 27, 2023) Key management personnel Key management personnel

(II) Operating income

) Operating income
LineItem Sale	Category of related party/Name Sub-subsidiary Substantive related party Lextar Electronics Corporation Lextar Electronics (Chuzhou) Corp. Others		2023 $ 8 138,752 22,643 2,469 $ 163,872		2022
					$ 5,570 121,205 15,851 2,461 $ 145,087

The selling prices to related parties are equivalent to those to ordinary customers, and the payment terms are implemented in accordance with the Company's payment policy.

(III) Purchase

I) Purchase
Category of related party/Name Substantive related party Epistar Corporation best Epitaxy Manufacturing Co. Ltd.		2023 $ 38,258 54 $ 38,312		2022
				$ 15,990 112 $ 16,102

The purchase prices from related parties are equivalent to those to ordinary

clients, and the purchase terms are implemented in accordance with the Company's policy.

(IV) Receivables from related parties

Line Item Accounts receivable - related parties	- 72 - Category of related party/Name Sub-subsidiary Substantive related party Lextar Electronics Corporation Lextar Electronics (Chuzhou) Corp.	December 31, 2023 $ 96 30,251 7,873	March 31,2022
			$ 15 27,277 6,926

Others Other receivables - related parties Subsidiary	1,001 39,221 8,016 $ 47,237	1,078 35,296 8,014 $ 43,310

The sales between the Company and the related parties are processed per the terms and prices agreed upon by both parties and the payment terms are 90 to 120 days after the end of each month. No guarantee is received for the accounts receivable from related parties still outstanding. No loss allowance was provided for accounts receivable from related parties in 2023 and 2022.

(V) Payables to related parties (excluding loans from related parties)

Line Item Accounts payable - related parties Other receivables - related parties	Category of related party/Name Substantive related party Epistar Corporation best Epitaxy Manufacturin g Co. Ltd. Sub-subsidiary Substantive related party Epistar Corporation	December 31, 2023 $ 7,560 - $ 7,560 $ 14,856 - $ 14,856	March 31,2022	March 31,2022
				$ 1,692 13 $ 1,705 $ 11,779 37 $ 11,816

The Company's purchase price from and processing contracted to related parties are handled in accordance with the general purchase terms; the payment period to related parties and non-related parties is decided per the conditions agreed upon by both parties.

No guarantee is provided for the balance of the outstanding accounts payable to related parties.

(VI) Loans to related parties

I) Loans to related parties
- 73 - Category of related party/Name December 31,2023 Other receivables Subsidiary Keeper Technology $ 8,000 Category of related party 2023 Interest income Subsidiary $ 178	March 31,2022
		$ 8,000 2022
		$ 168

The Company provides loans to subsidiaries, at interest rates similar to the market interest rates. As of December 31, 2023 and 2022, there had been interest uncollected for the amount of NT$16 thousand and NT$14 thousand, accounted for under other receivables.

(VII) Other income

II) Other income
Line Item Rent income Other income	Category of related party/Name Subsidiary Long Benefit Sub-subsidiary		2023 $ 34 $ 21		2022
					$ 34 $ 10

(VIII) Contract processing

The processing fees to the Company's sub-subsidiary Yuanmao contracted to process products for the Company in 2023 and 2022 were NT$83,552 thousand and NT$109,461 thousand, respectively. As of December 31, 2023 and 2022, the outstanding balance was NT$14,856 thousand and NT$11,779 thousand, respectively, accounted for under the processing expense payable.

The pricing of the contract processing expenses is not able to be compared with other manufacturers' OEM prices and conditions because the Company did not commission other manufacturers for contract processing.

(IX) Transactions with other related parties

Line Item Operating expenses - miscellaneous expenses	Category of related party/Name Substantive related party Epistar Corporation best Epitaxy Manufacturing Co. Ltd. Unikorn Semiconductor Corp.		2023 $ 88 38 - $ 126		2022
					$ 467 - 197 $ 664

(X) Compensation of key management personnel

The total compensation of directors and other key management personnel is as follows:

as follows:
Short-term employee benefits Post-employment benefits		2023 $ 19,325 452 $ 19,777		2022
				$ 21,593 526 $ 22,119

74 -

The remuneration of directors and other key management personnel was

determined by the remuneration committee based on the performance of individuals and market trends.

XXXII. Pledged Assets

The following assets have been provided as collateral for financing loans and security for tariff of imported raw materials:

Restricted time deposits (accounted for in financial assets at amortized cost) Land Buildings	December 31,2023 $ 6,239 62,273 612,310 $ 680,822	March 31,2022	March 31,2022
			$ 6,665 62,273 631,796 $ 700,734

XXXIII. Significant Contingent Liabilities and Unrecognized Commitments

Except for those already mentioned in other notes, the Company's significant commitments as of the balance sheet date are as follows:

(I) As of December 31, 2023 and 2022, the amount of unused letters of credit issued by the Company for imported raw materials and machinery and equipment was equivalent to NT$5,603 thousand and NT$10,006 thousand, respectively.
(II) As of December 31, 2023, the total price of the uncompleted important equipment and engineering procurement contracts of the Company was equivalent to NT$208,104 thousand, of which NT$86,398 thousand had been paid, which was recognized in prepayments for equipment and unfinished construction and the remaining NT$121,706 thousand had not been paid.

XXXIV. Significant assets and liabilities denominated in foreign currencies

The following information is aggregated in foreign currencies other than the Company’s functional currency. The disclosed exchange rates refer to the exchange rates at which the foreign currencies were converted into functional currencies. The significant assets and liabilities denominated in foreign currencies were as follows:

December 31, 2023

December 31, 2023
Foreign currencyasset Monetary items USD JPY CNY	Foreign currency $ 15,982 128 47,826	Exchange rate 30.71 0.22 4.33	Carryingamount
			$ 490,727 28 206,943

75 -

Foreign currency
liabilities
Monetary items
USD	323	30.71	9,918
JPY	230,266	0.22	50,014
CNY	4,108	4.33	17,777

March 31, 2022

March 31, 2022
Foreign currencyasset Monetary items USD JPY CNY	Foreign currency $ 15,585 1,095 38,120	Exchange rate 30.71 0.23 4.41	Carryingamount
			$ 478,615 254 168,033

(Continued on next page)

76 -

(Continued from previous page)

Foreign currency liabilities Monetary items USD JPY CNY EUR	Foreign currency $ 275 237,979 2,686 161	Exchange rate 30.71 0.23 4.41 32.72	Carryingamount
			$ 8,445 55,306 11,840 5,268

The (unrealized) gains and losses on foreign currency exchange with a material impact are as follows:

Foreign currency USD Japanese Yen (JPY) CNY Others	2023	Net Foreign Exchange Gain (Loss) ( $ 8,782 ) 2,436 673 365 ($ 5,308)	2022
	Exchange rate 30.71 (USD:NTD) 0.22 (JPY:NTD) 4.33 (CNY:NTD)		Exchange rate 30.71 (USD:NTD) 0.23 (JPY:NTD) 4.41 (CNY:NTD)	Net Foreign Exchange Gain (Loss)
		( (		(	$ 10,658 5,078 ) 3,205 104 $ 8,889

XXXV. Additional Disclosures

(I) Information on significant transactions and (II) investees:
Financing provided to others: (Table 1)
Endorsement/guarantee provided: None.
Marketable securities held (excluding investment in subsidiaries, associates, and jointly controlled entities): Table 2.
Marketable securities acquired or sold at costs or prices at least NT$300 million or 20% of the paid-in capital: none.
Acquisition of individual property at costs of at least NT$300 million or 20% of the paid-in capital: none.
Disposal of individual property at costs of at least NT$300 million or 20% of the paid-in capital: none.
Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital: none.
Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital: none.
Trading in derivative instruments: Note 7.
Information on investees: Table 3.
77 -
(III) Information on investments in Mainland China:
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, current profit or loss and investment gains and losses recognized, 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 4.
Any of the following significant transactions with investee companies in mainland China, either directly or indirectly through a third party, and their prices, payment terms and unrealized gains or losses: Table 5.
- (1) The amount and percentage of purchase.
- (2) The amount and percentage of sales.
(IV) Information on major shareholders: list of all shareholders with ownership of 5 percent or greater showing the names and the number of shares and percentage of ownership held by each shareholder: Table 6.
78 -

TYNTEK Corporation Financing provided to others January 1 to December 31, 2023

Table 1

Unit: NTD thousand

Serial No.	Lender	Borrower	Financial Statement Account	Related Party Status	Maximum Balance for the Period	Ending balance	Transaction Amounts	Interest Rate (Note 3)	Category of Financing Provided	Business Transaction Amounts	Reasons for Necessity of Short-term Financing	Loss Allowance	Collateral	Collateral	Limit of Financing to Individual Borrower (Note 1)	Total Limit of Financing Provided (Note 2)	Remar ks
													Name	Value
0	TYNTEK Corporation	Keeper Technology	Other receivables - related parties	Yes	$ 20,000	$ 10,000	$ 8,000	2.155%~ 2.380%	Need for short- term financing	$ -	Bank loan repayment and purchase of equipment	$ -	－	$ -	$ 383,845	$ 767,689

Note 1: TYNTEK Corporation's limit of financing to individual borrowers does not exceed 10% of the net value stated in the most recent financial statements reviewed/audited by CPAs.

Note 2: TYNTEK Corporation's total limit of financing to borrowers does not exceed 20% of the net value stated in the most recent financial statements reviewed/audited by CPAs. Note 3: TYNTEK Corporation's interest rate ranges of financing to others are based on the borrowing interest rate of financial institutions plus 5%.

79 -

TYNTEK Corporation

Marketable Securities Held at the End of Year

December 31, 2023

Table 2

Unit: in thousand of New Taiwan Dollars/Thousand Units/Thousand Shares

Holding Company Name	Type and Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account		March 31,2021	March 31,2021		Remarks
				Number of Shares/Units	Carrying amount	Percentage of Ownership	Market price
TYNTEK Corporation Long Benefit Investment Co., Ltd.	Unity Opto/stock/common stock First Commercial Bank/gold passbook Fittech Co., Ltd./stock/common stock Fujian Zhaoyuan Photoelectric Co., Ltd. Unity Opto/stock/common stock Chipwell Tech Corporation/stock/common stock Brightek Optoelectronic Co., Ltd./stock/common stock Hanpin Electron Co., Ltd./stock/common stock Elite Advanced Laser Corporation/stock/common stock Fittech Co., Ltd./stock/common stock Chipwell Tech Corporation/stock/common stock Chipstar Tech Corporation/stock/common stock	None None Investee with 0.37% of shares held Investee with 4.28% of shares held None Investee with 1.84% of shares held Investee with 1.5% of shares held None None Investee with 2.37% of shares held Investee with 0.76% of shares held Investee with 10.95% of shares held	Financial assets at FVTPL - Current Financial assets at FVTPL - Current Financial assets at FVTPL - Current Financial assets at FVTPL - Non-current Financial assets at FVTOCI - current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTPL - Current Financial assets at FVTPL - Current Financial assets at FVTPL - Current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current	264 - 275 - 836 494 1,020 220 70 1,740 204 698	$ - 15 18,368 - - 8,827 41,871 8,789 4,361 116,062 4,322 6,307	- - 0.37 4.28 - 1.84 1.50 - - 2.37 0.76 10.95	$ - 15 18,368 - - 8,827 41,871 8,789 4,361 116,062 4,322 6,307	Note 1 Note 1

Note 1: Because the public company Unity Opto Technology co., Ltd. (hereinafter referred to as Unity Opto) failed to publish its financial statements for 2019 Q4 prior to a deadline as required by law, its stock stopped to be traded

starting from April 7, 2020 as instructed by the Taiwan Stock Exchange on April 1, 2020. After prudent evaluation, the Company recognized all shares of Unity Opto held as financial asset valuation losses. Note 2: Refer to Table 3 for the information on subsidiaries and associates.

80 -

Unit: In thousand of New Taiwan Dollars/Thousand Shares

TYNTEK Corporation

Information on Investees January 1 to December 31, 2023

Table 3

Investor	Investor Company	Location	Main Businesses and Products	Investment Amount	Investment Amount	As of March 31,2020	As of March 31,2020	As of March 31,2020	Gains (losses) on investee	Gains (losses) on investment recognized by the Company	Remarks
				March 31, 2021	March 31, 2020	Shares	Percentage (%)	Carrying amount
TYNTEK Corporation TEK Holding Co., Ltd. Long Benefit Investment Co., Ltd.	TEK Holding Co., Ltd. Long Benefit Investment Co., Ltd. Hsinjing Holding Co., Ltd. Coretech Optical Co., Ltd. Keeper Technology Keyway International L.L.C. Coretech Optical Co., Ltd.	3RD FLOOR, YAMRAJ BUILDING, MARKET SQUARE, ROAD TOWN, TORTOLA, BRITISH VIRGIN ISLANDS. No. 1387, Renai Road, Zhunan Township, Miaoli County 3F-1, No. 193, Fuxing 2nd Road, Zhubei City, Hsinchu County 7F-6, No. 35, Xintai Road, Zhubei City, Hsinchu County No. 29, Wuquan 7th Road, Wugu District, New Taipei City 3500 South Dupont Highway, Dover, Delaware 19901, U.S.A. 7F-6, No. 35, Xintai Road, Zhubei City, Hsinchu County	Investment in various overseas businesses General investment General investment Machinery, electronic components, power generation, transmission, and distribution machinery, as well as precision equipment manufacturing Mechanical installation, retail and wholesale of electronic materials, automobile and scooter parts and accessories, traffic sign equipment and other machinery, as well as manufacturing of lighting equipment and other machinery. Investment in various overseas businesses Machinery, electronic components, power generation, transmission, and distribution machinery, as well as precision equipment manufacturing	$ 258,290 185,000 591,378 5,000 30,000 258,768 25,228	$ 258,290 185,000 591,378 5,000 30,000 258,768 25,228	6,700 28,749 17,794 200 2,033 - 2,000	100 100 22.79 2.08 19.02 100 20.81	$ 241,990 259,218 160,826 2,369 18,003 239,096 23,703	( $ 20,940 ) ( 27,632 ) ( 20,724 ) 13,853 ( 10,981 ) ( 20,947 ) 13,853	( $ 20,940 ) ( 27,632 ) ( 5,242 ) 288 ( 2,494 ) ( 20,947 ) 2,883

81 -

Keeper Technology Global Unity Int’l Co., Ltd.	Keeper Technology Global Unity Int’l Co., Ltd. Creation New Technology Inc.	No. 29, Wuquan 7th Road, Wugu District, New Taipei City Level 3, Alexander House, 35 Cybercity, Ebene, Mauritius Vistra Corporate Services Centre, Ground Floor NPF Building, Beach Road. ApiaSamoa	Mechanical installation, retail and wholesale of electronic materials, automobile and scooter parts and accessories, traffic sign equipment and other machinery, as well as manufacturing of lighting equipment and other machinery. Investment in various overseas businesses Investment in various overseas businesses	48,977 32,376 32,376	48,977 32,376 32,376	3,871 1,000 1,000	36.21 100 100	34,272 - -	( 10,981 ) 337 337	( 4,746 ) 337 337

82 -

TYNTEK Corporation

Information on investments in Mainland China

January 1 to December 31, 2023

Table 4

Unit: Unless otherwise indicated, In Thousands of New Taiwan Dollars

I. Information on investments in Mainland China

(I) 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, gains or losses on investment, carrying amount of the investment and repatriations of investment income:

Name of Investee	Main Businesses and Products	Paid-in Capital	Method of Investments	Accumulated Investment Amount from Taiwan at Beginning of Period	Investment Flows	Investment Flows	Accumulated Investment Amount from Taiwan at End of Period	% Ownership of Direct or Indirect Investment	Gains (losses) on Investment	Carrying Amount of Investments at End of Period	The Repatriated Proceeds of Investments as of This Period
					Outward	Inward
Yuanmao Opto- electronic Technology (Wuhan) Co., Ltd. Fujian Zhaoyuan Photoelectric Co., Ltd. Kaishin Technology (Wuhan) Corporation	Other light-emitting diode production and sales business Other light-emitting diode production and sales business R&D and manufacturing of LED lighting equipment products, electronic component manufacturing, automobile parts manufacturing, as well as electrical appliances and audiovisual electronic products manufacturing	$ 258,290 ( US$ 6,700,000 ) 6,692,823 (CNY 1,437,000,000) -	Investment in China via a company set up in a third region Direct investment in companies in China Investment in China via a company set up in a third region	$ 258,290 ( US$ 6,700,000 ) 468,652 ( US$ 8,565,000 and CNY 45,890 thousand ) 32,376 ( US$ $1,000,000 )	$ - - -	$ - - -	$ 258,290 ( US$ 6,700,000 ) 468,652 ( US$ 8,565,000 and CNY45,890 thousand ) -	100% 4.28% (Note 1) (Note 2)	( $ 20,948 ) - -	$ 239,076 - -	$ - - -

Note 1: The Company failed to subscribe to shares arising from capital increase in the proportion of the ownership and disposed of a portion of its investment equity in the company in June 2018 and thus lost significant influence. Therefore, it was reclassified as financial assets measured at FVTPL.

Note 2: The liquidation of Kaishin Technology (Wuhan) Corporation was completed in February 2023.

(II) Limit on investment amount in Mainland China:

Accumulated Outward Remittance for Investment in Mainland China as of December 31,2021	Investment Amount Authorized by Investment Commission, MOEA	Limit on Investment Amount Stipulated by Investment Commission, MOEA
$742,324 (USD 15,749 thousand and CNY 45,890 thousand)	$742,370 (USD 23,042 thousand)	$2,303,068

83 -

TYNTEK Corporation

Significant Transactions with Investee Companies in Mainland China, Either Directly or Indirectly Through a Third Party and Their Prices, Payment Terms, Unrealized Gains Or Losses and Relevant Information January 1 to December 31, 2023

Table 5				Unit: Unless otherwise indicated, In Thousands of New Taiwan Dollars Transaction Terms Accounts Receivable(Payable) Unrealized Gains or Losses Payment Term Comparison with General Transaction Balance Percentage T/T O/A with net 120 days Processing expense payable $ 14,856 7.53% $ -	Unit: Unless otherwise indicated, In Thousands of New Taiwan Dollars Transaction Terms Accounts Receivable(Payable) Unrealized Gains or Losses Payment Term Comparison with General Transaction Balance Percentage T/T O/A with net 120 days Processing expense payable $ 14,856 7.53% $ -	Unit: Unless otherwise indicated, In Thousands of New Taiwan Dollars Transaction Terms Accounts Receivable(Payable) Unrealized Gains or Losses Payment Term Comparison with General Transaction Balance Percentage T/T O/A with net 120 days Processing expense payable $ 14,856 7.53% $ -	Unit: Unless otherwise indicated, In Thousands of New Taiwan Dollars Transaction Terms Accounts Receivable(Payable) Unrealized Gains or Losses Payment Term Comparison with General Transaction Balance Percentage T/T O/A with net 120 days Processing expense payable $ 14,856 7.53% $ -	Unit: Unless otherwise indicated, In Thousands of New Taiwan Dollars Transaction Terms Accounts Receivable(Payable) Unrealized Gains or Losses Payment Term Comparison with General Transaction Balance Percentage T/T O/A with net 120 days Processing expense payable $ 14,856 7.53% $ -
Name of Investee	Transaction Type	Amount		Transaction Terms		Accounts Receivable(Payable)		Unrealized Gains or Losses
			Price	Payment Term	Comparison with General Transaction	Balance	Percentage
Yuanmao Opto-electronic Technology (Wuhan) Co., Ltd.	Contract processing	$ 83,552 (Processing expense)	Price negotiation	T/T	O/A with net 120 days	Processing expense payable $ 14,856	7.53%	$ -

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TYNTEK Corporation

Information on main investors

December 31, 2023

Table 6

Name of major shareholder	Shares
	Sharesheld (shares)	SharesRatio
Ennostar Inc.	23,799,000	7.91%

Note: The information on major shareholders in this table is calculated by Taiwan Depository and Clearing Corporation on the last business day at the end of the quarter when the shareholders as a whole hold at least 5% of the ordinary shares and preference shares with the dematerialized registration and delivery (including treasury shares) completed. The share capital in the Company's consolidated financial statements and the actual number of shares with the dematerialized registration and delivery completed may differ due to different calculation bases.

85 -

§Table of Contents of Significant Accounting Statements§

Item	No./Index
Statement of Assets, Liabilities, and Equity Items
Statement of Cash and Cash Equivalents	Statement 1
Statement of Financial Assets at FVTPL - Current	Statement 2
Statement of Financial Assets at FVTOCI - Current	Statement 3
Statement of Financial Assets at Amortized Cost	Statement 4
Statement of Notes Receivable	Statement 5
Statement of Accounts Receivable	Statement 6
Statement of Other Receivables	Statement 7
Statement of Inventories	Statement 8
Statement of Other Current Assets	Note 16
Statement of Financial Assets at FVTPL - Non-current	Statement 9
Statement of Financial Assets at FVTOCI - Non-current	Statement 10
Statement of Changes in Investment Using the Equity	Statement 11
Method
Statement of Changes in Property, Plant and Equipment	Note 13
Statement of Changes in Accumulated Depreciation of	Note 13
Property, Plant and Equipment
Statement of Changes in Accumulated Impairment of	Note 13
Property, Plant and Equipment
Statement of Changes in Right-of-use Assets	Statement 12
Statement of Changes in Accumulated Depreciation of	Statement 13
Right-of-use Assets
Statement of Changes in Intangible Assets	Note 15
Statement of Deferred Income Tax Assets	Note 25
Statement of Other Current Assets	Note 16
Statement of Short-term Borrowings	Statement 14
Statement of Financial Assets at FVTPL - Current	Notes 7
Statement of Accounts Payable	Statement 15
Statement of Other Payables and Other Current	Note 19
Liabilities
Statement of Lease Liabilities	Statement 16
Statement of Long-term Borrowings	Note 17
Statement of Provisions - Non-current	Note 20
Statement of Deferred Income Tax Liabilities	Note 25
Statement of Other Current Liabilities	Note 19
Statement of Gains or Losses
Statement of Operating Income	Statement 17
Statement of Operating Costs	Statement 18
Statement of Production Overheads	Statement 19
Statement of Operating Expenses	Statement 20
Statement of Other Gains or Losses - Net	Note 24
Statement of Financial Costs	Note 24
Table of Aggregate Employee Benefit, Depreciation,	Statement 21
and Amortization Expenses Incurred in Current
Period by Function

86 -

TYNTEK Corporation

Statement of Cash and Cash Equivalents

December 31, 2023

Unit: In Thousands of New Taiwan Dollars/Foreign Currencies


Statement 1 Unit: In Thousands of New Taiwan Dollars/Foreign Currencies Item Amount Cash on hand and petty cash $ 184 Cash in banks Demand deposits in NTD 221,848 Demand deposits in foreign currencies (Note) 123,950 Cash equivalents (bank time deposits with original maturity date of less than 3 months) 780,000 1,125,798 Check deposit 448 $ 1,126,430
		$ 184 221,848 123,950 780,000 1,125,798 448 $ 1,126,430

Note: Including US$2,877,000 (exchange rate US$1=NT$30.71), JPY 116,000 (exchange rate JPY 1=NT$0.22), HKD 20,000 (exchange rate HKD 1=NT$3.93), EUR 2,000 (exchange rate EUR 1=NT$33.98), CNY 8,168,000 (exchange rate CNY 1=NT$4.33), and CHF 3,000 (exchange rate CHF 1=NT$36.49).

87 -

TYNTEK Corporation

Statement of Financial Assets at FVTPL - Current

December 31, 2023

Statement 2

Unit: Unless otherwise specified, in NTD thousand/thousand shares

Name of financial instruments Stocks Unity Opto Technology co., Ltd. Fittech Co., Ltd. Subtotal Gold passbook First Commercial Bank	Number of shares/lots 264 275 -	Face value (NTD) $ 10 10 -		Total $ 2,640 2,753 5,393 - $ 5,393	Interest rate - - -		Cost of acquisition $ 6,978 7,662 14,640 15 $ 14,655	Fairvalue Unit price (NTD) Total $ - $ - 66.7 18,368 18,368 - 15 $ 18,383	Fairvalue Unit price (NTD) Total $ - $ - 66.7 18,368 18,368 - 15 $ 18,383	Changes in fair value attributable to changes in credit risk $ - - - - $ -	Remarks
								Unit price (NTD) $ - 66.7 -
											－－－

88 -

TYNTEK Corporation

Statement of Financial Assets at FVTOCI - Current December 31, 2023

Statement 3 Name of financial instruments Stocks Unity Opto Technology co., Ltd.	Number of shares/lots 836	Face value $ 10		Total $ 8,363	Interest rate -		Cost of acquisition $ 32,192	Accumulated impairment $ -	Unit: Unless otherwise specified, in NTD thousand/thousand shares Fairvalue Remarks Unit Price Total $ - $ - －	Unit: Unless otherwise specified, in NTD thousand/thousand shares Fairvalue Remarks Unit Price Total $ - $ - －	Unit: Unless otherwise specified, in NTD thousand/thousand shares Fairvalue Remarks Unit Price Total $ - $ - －
									Unit Price $ -
											－

89 -

TYNTEK Corporation

Statement of Financial Assets at Amortized Cost December 31, 2023

Statement 4 Name Non-current Science Based Industrial Park Branch, Bank of Taiwan Time deposit of NT$1,000 thousand Time deposit of NT$2,000 thousand Time deposit of NT$3,239 thousand Total	Summary Time deposits with original maturity date of more than 3 months – pledge Time deposits with original maturity date of more than 3 months – pledge Time deposits with original maturity date of more than 3 months – pledge		Amount $ 1,000 2,000 3,239 $ 6,239	Period 2023.03.21~2024.03.21 2023.03.21~2024.03.21 2023.10.17~2024.10.17	Unit: In thousand of New Taiwan Dollars, Unless Stated Otherwise Annual interest rate (%) Pledge/Security 1.565 Yes 1.565 Yes 1.565 Yes

90 -

TYNTEK Corporation

Statement of Notes Receivable

December 31, 2023

Unit: NTD thousand


Statement 5 Customer name Non-related parties Daina Electronics Co., Ltd. Shina Opto Electronics Co., Ltd. XINLED TECHNOLOGIES CO., LTD Others (Note)	Summary Payment for purchase Payment for purchase Payment for purchase Payment for purchase	Unit	: NTD thousand Amount
			$ 128 111 89 6 $ 334

Note: The balance of each customer did not exceed 5% of the balance of this account.

91 -

TYNTEK Corporation

Statement of Accounts Receivable

December 31, 2023

Statement 6

Unit: NTD thousand

Customer name Non-related parties LITE ON OPTO TECHNOLOGY (CHANGZHOU) CO., LTD. Long Lake CO., LTD. FUSLEY MINERALS GROUP LIMITED Everlight Electronics Co., Ltd. LITE-ON ELECTRONICS (TIANJIN) CO., LTD. LITE-ON ELECTRONICS (THAILAND) CO., LTD. Others (Note) Related party Lextar Electronics Corporation Lextar Electronics (Chuzhou) Corp. Others (Note) Less: Allowance for impairment loss	Summary Payment for purchase Payment for purchase Payment for purchase Payment for purchase Payment for purchase Payment for purchase Payment for purchase Payment for purchase Payment for purchase Payment for purchase		Amount
		(	$ 114,083 87,168 55,950 52,098 47,124 39,351 213,660 30,251 7,873 1,097 648,655 1,156) $ 647,499

Note: The balance of each customer did not exceed 5% of the balance of this account.

92 -

TYNTEK Corporation

Statement of Other Receivables

December 31, 2023

Statement 7

Unit: NTD thousand

Item/Name Non-related parties Tax refund receivable Other receivables Other receivables Related party Keeper Technology	Summary Business tax refund receivable Interest receivable Others Loans and interest receivable		Amount
			$ 8,806 495 2,234 11,535 8,016 $ 19,551

93 -

TYNTEK Corporation Statement of Inventories December 31, 2023

Statement 8

Unit: NTD thousand

Item Raw materials Supplies Work-in-progress Finished goods Products		Amount	Amount
		Cost $ 138,880 24,477 245,267 197,897 368 $ 606,889	Net	realizable value (Note)
				$ 190,082 21,692 356,331 261,497 383 $ 829,985

Note: The value of inventories shall be based on the cost and NRV, whichever is lower. The comparison of the cost and NRV is based on individual items except for inventories of the same category. The NRV is the estimated selling price in the ordinary course of business, less the cost of completion and the selling expenses.

94 -

TYNTEK Corporation

Statement of Financial Assets at FVTPL - Non-current

January 1 to December 31, 2023

Statement 9 Name of financial instruments Foreign unlisted stocks Fujian Zhaoyuan Photoelectric Co., Ltd.	Opening	balance Fairvalue $ -	Increasefor the currentyear Shares Fairvalue - $ -	Increasefor the currentyear Shares Fairvalue - $ -	Decreasefor the currentyear Shares Fairvalue - $ -	Decreasefor the currentyear Shares Fairvalue - $ -		Valuation gains or losses $ -	Unit: Unless otherwise specified, in NTD thousand/thousand shares Closing balance Collateral or pledge Remarks Shares Fairvalue - $ - None Note	Unit: Unless otherwise specified, in NTD thousand/thousand shares Closing balance Collateral or pledge Remarks Shares Fairvalue - $ - None Note	Unit: Unless otherwise specified, in NTD thousand/thousand shares Closing balance Collateral or pledge Remarks Shares Fairvalue - $ - None Note
	Shares -		Shares -		Shares -				Shares -
											Note

Note: A limited liability company without issue of stock.

95 -

TYNTEK Corporation

Statement of Financial Assets at FVTOCI - Non-current January 1 to December 31, 2023

Statement 10

Unit: Unless otherwise specified, in NTD thousand/thousand shares

Decrease for the current

Name of financial instruments Unlisted stocks Chipwell Tech Corporation Stocks listed on TWSE/TPEx and emerging stock markets Brightek Optoelectronic Co., Ltd.	Opening	balance Fairvalue $ 8,827 27,030 $ 35,857	Increasefor the currentyear Shares (Thousands) Amount 57 $ - - - $ -	Increasefor the currentyear Shares (Thousands) Amount 57 $ - - - $ -	year	year	Amount $ - - $ -		Valuation gains or losses $ - 14,841 $ 14,841	Closing balance Shares (Thousands) Fairvalue 494 $ 8,827 1,02041,871 $ 50,698	Closing balance Shares (Thousands) Fairvalue 494 $ 8,827 1,02041,871 $ 50,698	Accumulate d impairment Not applicable Not applicable	Security or pledge None None	Remarks
	Shares (Thousands) 437 1,020		Shares (Thousands) 57 -		Shares (Thousands) - -					Shares (Thousands) 494 1,020
														Note `－`

Note: The increase in current period is due to capitalization of capital reserve.

96 -

TYNTEK Corporation

Statement of Changes in Investment Using the Equity Method

January 1 to December 31, 2023

Statement 11

Unit: In thousand of New Taiwan Dollars/Thousand Shares

InvestorCompany Valuation under equity method Unlisted stocks TEK Holding Co., Ltd. Long Benefit Investment Co., Ltd. Coretech Optical Co., Ltd. Keeper Technology Publicly listed companies Hsinjing Holding Co., Ltd. Less: Accumulated impairment - Investments accounted for using equity method	Opening	balance Amount $ 267,383 285,214 6,655 31,670 165,874 756,796 ( 15,746) $ 741,050	Increase for the currentyear Shares Amount (Note 1) - $ 432 - 29,925 - 156 - 426 - 2,099 33,038 - $ 33,038	Increase for the currentyear Shares Amount (Note 1) - $ 432 - 29,925 - 156 - 426 - 2,099 33,038 - $ 33,038	Decrease for the currentyear Shares Amount (Note 2) - ( $ 25,825 ) ( 13,641 ) ( 55,921 ) - ( 232 ) ( 967 ) ( 2,557 ) - ( 7,147) ( 91,682 ) - ($ 91,682)	Decrease for the currentyear Shares Amount (Note 2) - ( $ 25,825 ) ( 13,641 ) ( 55,921 ) - ( 232 ) ( 967 ) ( 2,557 ) - ( 7,147) ( 91,682 ) - ($ 91,682)	Closingbalance	Closingbalance		Amount $ 241,990 259,218 6,579 29,539 160,826 698,152 15,746) $ 682,406	Market price or equity value (Note 3) Unit Price Total Price 36.12 $ 241,990 9.02 259,218 32.90 6,579 14.53 29,539 26 462,646 999,972 ( 15,746) $ 984,226	Market price or equity value (Note 3) Unit Price Total Price 36.12 $ 241,990 9.02 259,218 32.90 6,579 14.53 29,539 26 462,646 999,972 ( 15,746) $ 984,226	Pledge
	Shares 6,700 42,390 200 3,000 17,794		Shares - - - - -		Shares - ( 13,641 ) - ( 967 ) -		Shares 6,700 28,749 200 2,033 17,794	Percentage of Ownership % 100 100 2.08 19.02 22.79			Unit Price 36.12 9.02 32.90 14.53 26
		(				( ( ( ( ( ( (			(			(	None None None None None

Note 1: The increase of NT$33,038 thousand this year includes investment gains of NT$30,057 thousand recognized, unrealized gains and losses of financial assets of subsidiaries and affiliated companies recognized under the equity method of NT$1,069 thousand, capital reserves - changes in equity of affiliated companies recognized under the equity method NT$1,388 thousand, the exchange difference on the translation of the financial statements of foreign operations of NT$475 thousand, and the remeasurement of defined benefit plans at NT$49 thousand.

Note 2: The decrease of NT$91,682 thousand for the current year includes the investment loss recognized for NT$86,077 thousand, the exchange difference on the translation of the financial statements of foreign operations for NT$5,217 thousand, the disposal of subsidiary for NT$24 thousand during the current period, and the dividend of NT$364 thousand from the subsidiaries and associates.

Note 3: The market price refers to the closing price on December 31, 2023; the net equity value was mainly calculated based on the investees’ financial statements and the Company's ownership.

97 -

TYNTEK Corporation

Statement of Changes in Right-of-use Assets

January 1 to December 31, 2023

Statement 12 Item Land Other Equipment Transport Equipment	Beginning retained earnings $ 91,473 2,686 - $ 94,159		Increase $ - - 1,562 $ 1,562		Unit: Decrease $ - 1,997 - $ 1,997	NTD thousand Ending balance	NTD thousand Ending balance
							$ 91,473 689 1,562 $ 93,724

98 -

TYNTEK Corporation

Statement of Changes in Accumulated Depreciation of Right-of-use Assets January 1 to December 31, 2023

Statement 13 Item Land Other Equipment Transport Equipment	Beginning retained earnings $ 9,774 2,211 - $ 11,985		Increase $ 3,109 337 44 $ 3,490		Unit: Decrease $ - 1,997 - $ 1,997	NTD thousand Ending balance	NTD thousand Ending balance
							$ 12,883 551 44 $ 13,478

99 -

TYNTEK Corporation

Statement of Short-term Borrowings

December 31, 2023

Statement 14

Unit: NTD thousand

Type ofborrowingsand creditors Borrowings for purchase of materials Bank of Taiwan Hua Nan Commercial Bank Taipei Fubon Bank First Commercial Bank Land Bank of Taiwan Chang Hwa Commercial Bank	Ending balance $ 14,348 6,324 3,036 2,293 1,283 926 $ 28,210	Termofcontract 2023.12.11~2024.12.11 2023.06.28~2024.06.28 2023.09.26~2024.08.30 2023.12.06~2024.12.06 2023.03.17~2024.03.17 2023.08.29~2024.06.30	Interest raterange (%) 0.92~0.95 1.02 1.07~1.08 1.08~1.11 1.37~1.38 1.09	Financingfacilities $ 300,000 100,000 83,525 40,000 50,000 50,000 $ 623,525	Pledge/Security
					None None None None None None

Note: The Company’s short-term borrowing credit line totals approximately NT973,525 thousand (including the unused credit line of NT$350,000 thousand for short-term borrowings). As of December 31, 2023, the Company’s unutilized short-term borrowing credit line amounted to approximately NT$945,315 thousand.

100 -

TYNTEK Corporation

Statement of Accounts Payable December 31, 2023

Unit: NTD thousand


Statement 15 Name Non-related parties Atecom Technology Co., Ltd. Others (Note) Related party Epistar Corporation	Summary Payment for purchase Payment for purchase Payment for purchase	Unit:	NTD thousand Amount
			$ 46,742 286,335 333,077 7,560 $ 340,637

Note: The balance of each customer did not exceed 5% of the balance of this account.

101 -

TYNTEK Corporation

Statement of Lease Liabilities December 31, 2023

Statement 16 Item Land Land Land Transport Equipment Other Equipment	Summary No. 15, Kezhong Road Hsiu-Hua Chen-Lin Chi-Chang Chen Tokyo business vehicle Lease of gas storage tank equipment	Lease term 2017.11.01–2037.10.31 2022.07.01~2025.06.30 2022.07.01~2025.06.30 2023.11.28~2026.11.28 2020.01.01~2024.12.31	Unit: NTD thousand Discount rate Amount 1.80% $ 80,391 1.41% 573 1.41% 573 1.88% 1,519 1.80% 142 $ 83,198	Unit: NTD thousand Discount rate Amount 1.80% $ 80,391 1.41% 573 1.41% 573 1.88% 1,519 1.80% 142 $ 83,198	Unit: NTD thousand Discount rate Amount 1.80% $ 80,391 1.41% 573 1.41% 573 1.88% 1,519 1.80% 142 $ 83,198
					$ 80,391 573 573 1,519 142 $ 83,198

102 -

TYNTEK Corporation

Statement of Operating Income

January 1 to December 31, 2023

Statement 17

Unit: NTD thousand

Item Light-receiving components Compound semiconductor components Others	Quantity (thousand units) 12,781 6,331 20		Amount
			$ 1,303,665 696,666 3,552 $ 2,003,883

103 -

TYNTEK Corporation

Statement of Operating Costs

January 1 to December 31, 2023

Statement 18

Unit: NTD thousand

Item Merchandise inventory at beginning of period Add: Purchase of goods Less: Merchandise inventory at end of period Reclassified to operating expenses Others Cost of purchase and sales Consumption of raw materials Materials at beginning of period Add: Materials purchased Others Less: Materials at end of period Raw materials sold Reclassified to operating expenses Others Consumption of raw materials Consumption of supplies Supplies at beginning of period Add: Materials purchased Less: Supplies at end of period Supplies sold Reclassified to operating expenses Others Consumption of supplies Direct labor Production overheads Manufacturing cost Add: Work-in-progress at beginning of period Others Less: Work-in-progress at end of period Work-in-progress sold Reclassified to operating expenses Others Cost of finished goods Add: Finished goods at beginning of period Others Less: Finished goods at end of period Reclassified to operating expenses Others Cost of sales of self-made products Cost of raw materials sold Cost of supplies sold Cost of work-in-progress sold Others Cost of production and sales Operating costs		Amount
	( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( (	$ 4,582 50,899 368 ) 234 ) 1,385) 53,494 198,831 512,159 35,897 138,880 ) 403 ) 16,670 ) 848) 590,086 22,919 159,351 24,477 ) 15 ) 1,775 ) 455) 155,548 171,459 833,413 1,750,506 232,598 228,196 245,267 ) 162,709 ) 2,175 ) 228,075) 1,573,074 256,749 6,737 197,897 ) 9,748 ) 18,902) 1,610,013 403 15 162,709 22,904) 1,750,236 $ 1,803,730

104 -

TYNTEK Corporation

Statement of Production Overheads

January 1 to December 31, 2023

January 1 to December 31, 2023
Statement 19 Item Depreciation Consumption of supplies Processing expense Direct labor Utility bills Expenditure on repairs Others (Note)	Unit:	NTD thousand Amount
		$ 226,594 157,150 154,336 113,927 101,588 50,932 28,886 $ 833,413

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

105 -

TYNTEK Corporation

Statement of Operating Expenses

January 1 to December 31, 2023

Statement 20

Unit: NTD thousand

Item Wages and salaries Freight charges Commissions expense Export expenses Miscellaneous expenses Depreciation Material expenses Other expenses (Note)		Amount
	Selling and marketing expenses $ 14,260 5,631 2,652 2,408 559 466 - 6,872 $ 32,848	Administrative expenses $ 74,443 4 - - 12,651 20,405 - 39,575 $ 147,078	Research and development expenses
				$ 58,953 15 - - 5,885 8,341 20,955 27,562 $ 121,711

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

106 -

TYNTEK Corporation

Table of Aggregate Employee Benefit, Depreciation, and Amortization Expenses Incurred in Current Period by Function For the Year Ended December 31, 2023 and 2022

Statement 21

Unit: NTD thousand

Employee benefits expense Salaries and wages Pension Food expenses Welfare allowance Employee insurance premium Remuneration of directors Total Depreciation expense Amortization expenses				2023		Total $ 405,833 18,339 31,474 2,444 48,681 5,460 $ 512,231 $ 255,806 $ 2,376				2022
		Operating costs $ 269,722 12,254 25,364 1,660 35,083 - $ 344,083 $ 226,594 $ 9		Operating expenses $ 136,111 6,085 6,110 784 13,598 5,460 $ 168,148 $ 29,212 $ 2,367				Operating costs $ 281,787 13,714 25,969 1,870 37,670 - $ 361,010 $ 201,623 $ 9		Operating expenses $ 118,137 5,462 5,514 855 11,996 5,460 $ 147,424 $ 29,211 $ 1,314		Total
												$ 399,924 19,176 31,483 2,725 49,666 5,460 $ 508,434 $ 230,834 $ 1,323

Notes:

The number of employees for this year and the previous year were 758 and 732, respectively, of which the number of directors who did not serve as employees concurrently was five people.
Companies whose stocks have been listed on the Taiwan Stock Exchange or Taipei Exchange shall additionally disclose the following information:
(1) The average employee benefits expense for 2022 was NT$673 thousand (Total employee benefits expense for 2023— Total directors’ remuneration/Number of employees for 2023—Number of directors who are not employees concurrently). The average employee benefits expense for 2021 was NT$692 thousand (Total employee benefits expense for 2023 — Total directors’ remuneration/Number of employees for 2023 —Number of directors who are not employees concurrently).
(2) The average employee salaries and wages for 2023 was NT$539 thousand (Total salaries and wages for 2023 / Number of employees for 2023 - Number of directors who are not employees concurrently).
- The average employee salaries and wages for 2022 was NT$550 thousand (Total salaries and wages for 2023 / Number of employees for 2023 - Number of directors who are not employees concurrently).
(3) The average employee salary and wage adjustment was (2)% (Average employee salaries and wages for 2023 - Average employee salaries and wages for 2022 / Average employee salaries and wages for 2022).
(4) The Company does not engage any supervisor, so it does not intend to disclose the supervisor's compensation, remuneration, and professional service expense.
(5) The Company’s salary and remuneration policy (including directors, managers, and employees)
- A. The Company compensates directors based on their participation and contribution to the Company's operations while honoraria are granted in fixed amounts after taking into consideration the standard in the industry. According to the Articles of Incorporation, profits concluded in a year are subject to director remuneration of no more than 5% and employee compensation of 5%-15%. The amount of remuneration, once resolved by the board of directors, is presented during shareholder meeting.

(Continued on next page)

107 -

(Continued from previous page)

B. The compensation standards for the President, vice presidents, and managers are determined after their individual performance, contribution to the overall operation of the Company, and the standards in the market are considered, and then deliberated by the remuneration committee before submitted to the board of directors for resolution.
C. The Company’s employee salary and remuneration policy is based on each employee’s position, contribution to the Company, performance, and other aspects; the overall salary and remuneration package includes monthly salary, quarterly bonuses based on the Company’s operating performance, and employee compensation based on annual profitability. In addition, the Company considers the general standards in the same industry and reviews internal fairness to continuously optimize employees’ salary and remuneration.
108 -

AI assistant

TYNTEK — Audit Report / Information 2023

52074_rns_2023-12-08_f292c5e4-71fd-49d4-aeb2-d701bbdb05d9.pdf

TYNTEK Corporation

Standalone Financial Statements and Independent Auditors' Report For the Years Ended December 31, 2023 and 2022

§ Table of Contents §

Independent Auditors’ Review Report

To TYNTEK Corporation,

Audit opinion

Basis for audit opinion

Key audit matters

Sales recognition

Other Matters

Responsibilities of the management and the governing body for the parent-only financial statements

Auditor's responsibilities for the audit of the parent-only financial statements

TYNTEK Corporation

parent-only Balance Sheet

TYNTEK Corporation

(Continued from previous page)

TYNTEK Corporation

parent-only Statement of Changes in Equity

TYNTEK Corporation

parent-only Statement of Cash Flows

(Continued from previous page)

TYNTEK Corporation

Notes to Standalone Financial Statements

For the Year Ended December 31, 2023 and 2022

I. Organization and operations

II. The Authorization of Financial Statements

III. Application of New and Revised International Financial Reporting Standards

IV. Summary of Significant Accounting Policies

(I) Statement of compliance

(II) Basis of preparation

(IX) Investment Property

(XII) Financial instruments

1. Financial asset

(2) Impairment of financial assets

2. Equity instrument

3. Financial liability

A. Financial liability at FVTPL

(2) Derecognition of financial liabilities

4. Derivatives

(XIV) Revenue recognition

(XV) Leases

2. The Company as lessee

(XVI) Borrowing costs

(XVII) Government grants

(XIX) Income tax

1. Tax currently payable

2. Deferred tax

V. Critical Accounting Judgements and Key Sources of Estimation and Uncertainty

Key Sources of Estimation and Assumption Uncertainty

VI. Cash and equivalents

VIII. Financial assets at FVTOCI

IX. Financial assets at amortized cost

Trade receivable

Notes and accounts receivable

December 31, 2023

March 31, 2022

XI. Inventories

XII. Investments accounted for using equity method

1. Material associates

Hsinjing

XIII. Property, plant, and equipment

XIV. Lease arrangements

(III) Material lease-in activities and terms

(IV) Other lease information

XV. Intangible asset

(II) Long-term borrowings

XVIII. Note payable and accounts payable

XIX. Other liabilities

XX.

XXI. Post-employment benefit plans

(I) Defined contribution plans

(II) Defined benefit plan

(III) Retained earnings and dividends policy

XXIII. Revenue

(III) Other income

(IV) Other gains or losses

(VI) Depreciation and amortization

TYNTEK Audit Report / Information 2023