UCC - Annual Report 2023 | FinancialReports.eu

Universal Cement Corporation and Subsidiaries

Consolidated Financial Statement for the Years Ended December 31, 2023 and 2022 and Independent Auditors’ Report

DECLARATION OF CONSOLIDATION OF FINANCIAL STATEMENTS OF AFFILIATES

The companies required to be included in the consolidated financial statements of affiliates in accordance with the “Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises” for the year ended December 31, 2023 are all the same as the companies required to be included in the consolidated financial statements of parent and subsidiary companies as provided in International Financial Reporting Standard 10 “Consolidated Financial Statements”. Relevant information that should be disclosed in the consolidated financial statements of affiliates has all been disclosed in the consolidated financial statements of parent and subsidiary companies. Hence, we do not prepare a separate set of consolidated financial statements of affiliates.

Very truly yours,

UNIVERSAL CEMENT CORPORATION

Bo-Chih Investment Co., Ltd.

Chairman

March 15, 2024

INDEPENDENT AUDITORS’ REPORT

The Board of Directors and Shareholders Universal Cement Corporation

Opinion

We have audited the accompanying consolidated financial statements of Universal Cement Corporation and its subsidiaries (the Group), which comprise the consolidated balance sheets as of December 31, 2023 and 2022, and the consolidated statements of comprehensive income, changes in equity and cash flows for the years then ended, and the notes to the consolidated financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as of December 31, 2023 and 2022, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) endorsed and issued into effect by the Financial Supervisory Commission (FSC) of Taiwan, the Republic of China (ROC).

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and auditing standards generally accepted in the ROC. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with The Norm of Professional Ethics for Certified Public Accountant of the ROC, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

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

The key audit matter of the Group’s consolidated financial statements for the year ended December 31, 2023 is stated as follows:

Occurrence of sales of concrete products

Refer to Note 4 (n) and Note 24. The Group mainly manufactures and sells cement, ready mixed concrete and gypsum board panels. The sales amount of some concrete products changed greatly in 2023 and the change can be due to changes in volume or price or both. Sales is the main source of the Group’s revenue and has a material impact on the Group’s consolidated financial statements. Consequently, occurrence of sales of concrete products is considered as a key audit matter.

Our audit procedures in respect of the above key audit matter are described as follows:

We understood the design of the Group’s internal controls on accounting for sales. We tested the implementation and operating effectiveness of the internal controls.
We selected samples from the sales records, and verified that the products and quantities listed on the delivery orders and the invoices are the same and for the same customers. We noted that the delivery orders are signed by the customers.

Other Matter

We have also audited the parent company only financial statements of Universal Cement Corporation as of and for the years ended December 31, 2023 and 2022 on which we have issued an unmodified opinion.

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and IFRS, IAS, IFRIC, and SIC endorsed and issued into effect by the FSC of the ROC, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

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

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

Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements

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

As part of an audit in accordance with the auditing standards generally accepted in the ROC, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

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

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

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

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

The engagement partners on the audit resulting in this independent auditors’ report are Chi Chen Lee and Chao Chin Yang.

Deloitte & Touche Taipei, Taiwan

Republic of China

March 15, 2024

Notice to Readers

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

For the convenience of readers, the auditors’ report and the accompanying consolidated financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language independent auditors’ report and consolidated financial statements shall prevail. The English version not audited by an accountant.

Universal Cement Corporation and Subsidiaries

CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2023 AND 2022 (In Thousands of New Taiwan Dollars)

December 31, 2023 Amount % $ 1,418,310 5 13,972 - 2,691,567 10 127,350 - 1,480 - - - 567,255 2 1,546,340 6 58,750 - 589 - 388,373 1 18,065 - 4,383 - 6,836,434 24 47,558 - 1,991,004 7 16,995 - 10,804,634 39 7,342,196 26 222,428 1 840,717 3 10,648 - 16,511 - 45,458 - 14,977 - 21,353,126 76 $ 28,189,560 100 $ 1,700,000 6 274,785 1 2,359 - 218,691 1 709,034 3 34,059 - 406,020 1 157,831 1 53,990 - 500,000 2 22,080 - 4,078,849 15 1,245,107 4 175,887 1 11,583 - 1,432,577 5 5,511,426 20 6,732,175 24 123,719 - 2,920,126 10 3,185,793 11 8,099,817 29 14,205,736 50 807,552 3 21,869,182 77 808,952 3 22,678,134 80 $ 28,189,560 100	December 31, 2022	December 31, 2022
Amount $ 1,418,310 13,972 2,691,567 127,350 1,480 - 567,255 1,546,340 58,750 589 388,373 18,065 4,383	Amount $ 784,464 81,411 2,261,853 107,357 1,758 4,437 537,064 1,404,534 41,684 660 393,983 23,958 5,423 5,648,586 43,733 2,401,004 11,294 10,618,566 7,911,538 263,949 841,880 11,992 13,898 30,031 15,424 22,163,309 $ 27,811,895 $ 2,290,000 999,088 2,084 188,745 666,974 37,276 370,160 121,860 52,153 - 22,970 4,751,310 1,305,718 218,710 9,679 1,534,107 6,285,417 6,536,092 123,499 2,715,883 3,185,793 7,372,038 13,273,714 984,599 20,917,904 608,574 21,526,478 $ 27,811,895	% 3 - 8 - - - 2 5 - - 2 - - 20 - 9 - 38 29 1 3 - - - - 80 100 8 4 - 1 2 - 1 1 - - - 17 5 1 - 6 23 23 - 10 11 27 48 4 75 2 77 100
6,836,434 47,558 1,991,004 16,995 10,804,634 7,342,196 222,428 840,717 10,648 16,511 45,458 14,977 21,353,126 $ 28,189,560 $ 1,700,000 274,785 2,359 218,691 709,034 34,059 406,020 157,831 53,990 500,000 22,080 4,078,849 1,245,107 175,887 11,583 1,432,577
5,511,426 6,732,175 123,719 2,920,126 3,185,793 8,099,817 14,205,736 807,552 21,869,182 808,952 22,678,134 $ 28,189,560

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

(Concluded)

Universal Cement Corporation and Subsidiaries

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

OPERATING REVENUE (Notes 4, 24 and 33) OPERATING COSTS (Notes 12, 22, 25 and 33) GROSS PROFIT OPERATING EXPENSES (Notes 22, 25 and 33) Selling and marketing expenses General and administrative expenses Research and development expenses Expected credit loss (gain) Total operating expenses PROFIT FROM OPERATIONS NON-OPERATING INCOME AND EXPENSES(Notes 14, 25 and 33) Interest income Other income Other gains and losses Interest expenses Share of profit or loss of associates accounted for using the equity method Total non-operating income and expenses PROFIT BEFORE INCOME TAX INCOME TAX EXPENSE (Notes 4 and 26) NET PROFIT FOR THE YEAR OTHER COMPREHENSIVE INCOME (Notes 22, 23 and 26) Items that will not be reclassified subsequently to profit or loss: Remeasurement of defined benefit plans Unrealized gain/(loss) on investments in equity instruments at fair value through other comprehensive income Share of the other comprehensive income or loss of associates accounted for using the equity method		2023	% 100 80 20 2 5 1 - 8 12 - 4 7 ( 1 ) 11 21 33 3 30 - 1 -		2022
	( ( (	Amount $ 7,802,362 6,260,222 1,542,140 148,387 354,761 72,623 8,042 ) 567,729 974,411 9,977 276,655 536,377 55,671 ) 840,843 1,608,181 2,582,592 235,340 2,347,252 752 ) 31,144 3,148			Amount % $ 7,055,789 100 5,689,489 81 1,366,300 19 119,394 2 299,545 4 92,355 1 13,916 - 525,210 7 841,090 12 1,982 - 269,741 4 488,752 7 ( 41,671 ) ( 1) 823,435 12 1,542,239 22 2,383,329 34 199,837 3 2,183,492 31 4,106 - 73,867 1 17,190 - (Continued)

Universal Cement Corporation and Subsidiaries

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

	2023	2022
( ( (	Amount $ 150 33,690 210,016) ( 210,016) ( 176,326) ( $ 2,170,926 $ 2,107,758 239,494 $ 2,347,252 $ 1,931,472 239,454 $ 2,170,926 $ 3.13 3.12	Amount $ 821) 94,342 146,367 146,367 240,709 $ 2,424,201 $ 2,041,395 142,097 $ 2,183,492 $ 2,281,539 142,662 $ 2,424,201 $ 3.03 3.02	% -
			1
			2
			2
			3
			34
			29 2
			31
			32 2
			34

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

(Concluded)

Universal Cement Corporation and Subsidiaries CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

					Equity Attributable to Owners of	Equity Attributable to Owners of	the Company							Non-controlling Interests (Note 23) $ 151,011 - - ( 155,893 ) 479,869 - - - 142,097 565 142,662 ( 9,075) 608,574 - - - ( 334 ) - - - 239,494 ( 40)		Total Equity
Capital Stock - Common Stock $ 6,536,092 - - - - - - - - - - - 6,536,092 - - 196,083 - - - - - -		Capital Surplus $ 66,950 - - 56,211 - - 340 2 ) - - - - 123,499 - - - 221 - - 1 ) - -		Retained Earnings	Unappropriated Earnings $ 6,092,023 ( 108,808 ) ( 653,609 ) - - 1,077 ( 40 ) - 2,041,395 - 2,041,395 - 7,372,038 ( 204,243 ) ( 980,414 ) ( 196,083 ) - 1,620 ( 859 ) - 2,107,758 -			Other Equity				Total $ 745,532 - - - - 1,077 ) - - - 240,144 240,144 - 984,599 - - - - 1,620 ) 859 - - 176,286)
			Legal Reserve $ 2,607,075 108,808 - - - - - - - - - - 2,715,883 204,243 - - - - - - - -	Special Reserve $ 3,185,793 - - - - - - - - - - - 3,185,793 - - - - - - - - -		Exchange Differences on Translating Foreign Operations ($ 945,843 ) - - - - - - - - 146,367 146,367 - ( 799,476 ) - - - - - - - - ( 210,016)	Unrealized Gain (Loss) on Financial Assets at Fair Value Through Other Comprehensive Income $ 1,638,872 - - - - ( 1,077 ) - - - 74,103 74,103 - 1,711,898 - - - - ( 1,620 ) 859 - - 31,870		Remeasurement of Defined Benefit Plans $ 69,720 - - - - - - - - 19,674 19,674 - 89,394 - - - - - - - - 1,860	other
	( (						( (			($ 17,217 ) - - - - - - - - - - - ( 17,217 ) - - - - - - - - -	( ( (		( ( ( ( (	( ( ( (	( ( ( ( ( ( ( (	$ 19,384,476 - 653,609 ) 99,682 ) 479,869 - 300 2 ) 2,183,492 240,709 2,424,201 9,075) 21,526,478 - 980,414 ) - 113 ) - - 1 ) 2,347,252 176,326) (Continued)

Universal Cement Corporation and Subsidiaries

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

			Equity Attributable to Owners of	Equity Attributable to Owners of	the Company							Non-controlling Interests $ 239,454 ( 38,742) $ 808,952		Total Equity
Capital Stock - Common Stock - - $ 6,732,175	Capital Surplus - - $ 123,719		Retained Earnings Special Reserve Unappropriated Earnings - $ 2,107,758 - - $ 3,185,793 $ 8,099,817			Other Equity					Total $ 176,286) ) - $ 807,552
		Legal Reserve - - $ 2,920,126	Special Reserve - - $ 3,185,793	Exchange Differences on Translating Foreign Operations ($ 210,016) - ($ 1,009,492)	Unrealized Gain (Loss) on Financial Assets at Fair Value Through Other Comprehensive Income $ 31,870 - $ 1,743,007		Remeasurement of Defined Benefit Plans $ 1,860 - $ 91,254		other - - $ 17,217) )
				( (				(		(		(	(	$ 2,170,926 38,742) $ 22,678,134

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

(Concluded)

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Universal Cement Corporation and Subsidiaries CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022 (In Thousands of New Taiwan Dollars)

CASH FLOWS FROM OPERATING ACTIVITIES Income before income tax Adjustments for: Depreciation expenses Amortization expenses Expected credit loss (gain) recognized Net gain (loss) on fair value changes of financial assets designated as at fair value through profit or loss Interest expenses Interest income Dividend income Share of profit of associates accounted for using the equity method Net gain on disposal of property, plant and equipment Gain on disposal of investment properties Gain on disposal of associates accounted for using the equity method Inventory write-downs Impairment losses on assets Liquidation Benefit Changes in operating assets and liabilities Contract assets (Including related parties) Notes receivable Accounts receivable (Including related parties) Other receivables Inventories Prepayments Other current assets Contract liabilities Notes payable Accounts payable (Including related parties) Other payables Other current liabilities Net defined benefit plan Cash generated from operations Interest received Dividends received Income tax paid Net cash generated from operating activities CASH FLOWS FROM INVESTING ACTIVITIES Acquisitions of financial assets at fair value through other comprehensive income Proceeds from the liquidation of financial assets at fair value through other comprehensive income Proceeds from the capital reduction of financial assets at fair value through other comprehensive income		2023 2,582,592 181,754 4,145 8,042 ) 42,755 ) 55,671 9,977 ) 231,873 ) 840,843 ) 612,623 ) - - - 116,111 465 ) 5,894 30,191 ) 152,009 ) 11,672 ) 5,610 5,893 1,040 275 29,946 38,843 34,996 890 ) 160 1,121,590 9,974 679,780 262,443) 1,548,901 $ 2,260 ) 2,125 23,311		2022
	$ ( ( ( ( ( ( ( ( ( ( ( ( (		$ ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( (	2,383,329 175,370 2,657 13,916 12,244 41,671 1,982 ) 227,609 ) 823,435 ) 3,968 ) 403,203 ) 373,540 ) 461 274,161 44,029 ) 1,064 86,975 ) 248,955 ) 1,888 96,602 ) 5,048 ) 642 ) 8,191 ) 119,468 33,539 73,788 2,503 2,330) 809,550 1,974 406,771 205,228) 1,013,067 $ 38,916 ) - - (Continued)

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Universal Cement Corporation and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022 (In Thousands of New Taiwan Dollars)

Increase in financial assets at amortized cost Decrease in financial assets at amortized cost Acquisitions of financial assets at fair value through profit or loss Proceeds from sale of financial assets at fair value through profit or loss Acquisitions of investments accounted for using the equity method Net cash outflow of acquired subsidiary (Note 28) Payments for property, plant and equipment Proceeds from disposal of property, plant and equipment Payments for intangible assets Payments for investment properties Proceeds from disposal of investment properties Net cash generated from investing activities CASH FLOWS FROM FINANCING ACTIVITIES Increase (Repayments) from short-term borrowings Repayments from short-term bills payable Increase in long-term borrowings Proceeds from guarantee deposits received Refund of guarantee deposits received Repayment of the principal portion of lease liabilities Cash dividends paid Acquisitions of non-controlling interests Interest Paid Dividends paid to non-controlling interests Net cash used in financing activities NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR		2023 $ 37,129 ) 11,435 - 106,369 - - 195,570 ) 1,117,389 2,801 ) - - 1,022,869 590,000 ) 725,000 ) 500,000 2,699 795 ) 51,612 ) 980,414 ) 113 ) 53,947 ) 38,742) 1,937,924) 633,846 784,464 $ 1,418,310			2022
	( ( ( ( ( ( ( ( ( ( ( (			( ( ( ( ( ( (

				( ( ( ( ( ( ( (

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

(Concluded)

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Universal Cement Corporation and Subsidiaries

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

1. GENERAL INFORMATION

Universal Cement Corporation (the Company) was incorporated in the Republic of China (ROC) in March 1960. The Company mainly manufactures and sells cement, ready mixed concrete and gypsum board panels.

The Company’s shares have been listed on the Taiwan Stock Exchange (TWSE) since February 1971.

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

2. APPROVAL OF FINANCIAL STATEMENTS

The accompanying consolidated financial statements were approved by the Company’s board of directors on March 15, 2024.

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

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

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

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

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

Note 1: Unless stated otherwise, the above New IFRSs are effective for annual reporting periods beginning on or after their respective effective dates.
Note 2: A seller-lessee shall apply the Amendments to IFRS 16 retrospectively to sale and leaseback transactions entered into after the date of initial application of IFRS 16.
Note 3: The amendments provide some transition relief regarding disclosure requirements.
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As of the date the consolidated financial statements were authorized for issue, the Group is continuously assessing the possible impact that the application of other standards and interpretations will have on the Group’s financial position and financial performance and will disclose the relevant impact when the assessment is completed.

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

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

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

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a. Statement of compliance

The consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IFRSs as endorsed and issued into effect by the FSC.

b. Basis of preparation

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

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

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

Current assets include:

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

Current liabilities include:

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

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

d. Basis of consolidation

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

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

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

All intra-group transactions, balances, income and expenses are eliminated in full upon consolidation. Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

Changes in the Group’s ownership interests in subsidiaries that do not result in the Group losing control over the subsidiaries are accounted for as equity transactions. The carrying amounts of the Group’s interests and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to the owners of the Company.

See Note 13 and table 6 for detailed information on subsidiaries (including percentages of ownership and main business).

e. Business combinations

Acquisitions of businesses are accounted for using the acquisition method. Goodwill is measured as the excess of the sum of the consideration transferred and the fair value of the acquirer’s previously held equity interests in the acquiree over the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed. If, after re-assessment, the net of the acquisition date amounts of

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the identifiable assets acquired and liabilities assumed exceeds the sum of the consideration transferred, and the fair value of the acquirer’s previously held interests in the acquiree, the excess is recognized immediately in profit or loss as a bargain purchase gain.

When a business combination is achieved in stages, the Group’s previously held equity interest in an acquiree is remeasured to fair value at the acquisition date, and the resulting gain or loss is recognized in profit or loss. Amounts arising from interests in the acquiree prior to the acquisition date that have previously been recognized in other comprehensive income are recognized on the same basis as would be required had those interests been directly disposed of by the Group.

f. Foreign currencies

In preparing the financial statements of each individual group entity, transactions in currencies other than the entity’s functional currency (foreign currencies) are recognized at the rates of exchange prevailing at the dates of the transactions.

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

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

Non-monetary items that are measured at historical cost in a foreign currency are not retranslated.

For the purpose of presenting consolidated financial statements, the functional currencies of the Group entities (including subsidiaries in other countries that use currencies which are different from the currency of the Company) are translated into the presentation currency, the New Taiwan dollars as follows: Assets and liabilities are translated at the exchange rates prevailing at the end of the reporting period; and income and expense items are translated at the average exchange rates for the period. The resulting currency translation differences are recognized in other comprehensive income (attributed to the owners of the Company and non-controlling interests as appropriate).

g. Inventories

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

h. Investment in associates

An associate is an entity over which the Group has significant influence and that is neither a subsidiary nor an interest in a joint venture.

The Group uses the equity method to account for its investments in associates.

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

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Any excess of the cost of acquisition over the Group’s share of the net fair value of the identifiable assets and liabilities of an associate at the date of acquisition is recognized as goodwill, which is included within the carrying amount of the investment and is not amortized. Any excess of the Group’s share of the net fair value of the identifiable assets and liabilities over the cost of acquisition, after reassessment, is recognized immediately in profit or loss.

When the Group subscribes for additional new shares of the associate at a percentage different from its existing ownership percentage, the resulting carrying amount of the investment differs from the amount of the Group’s proportionate interest in the associate. The Group records such a difference as an adjustment to investments with the corresponding amount charged or credited to capital surplus – changes in capital surplus from investments in associates accounted for using the equity method. If the Group’s ownership interest is reduced due to the additional subscription of the new shares of associate, the proportionate amount of the gains or losses previously recognized in other comprehensive income in relation to that associate is reclassified to profit or loss on the same basis as would be required had the investee directly disposed of the related assets or liabilities. When the adjustment should be debited to capital surplus, but the capital surplus recognized from investments accounted for using the equity method is insufficient, the shortage is debited to retained earnings.

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

The entire carrying amount of the investment 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 that forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognized to the extent that the recoverable amount of the investment subsequently increases.

The Group discontinues the use of the equity method from the date on which its investment ceases to be an associate. Any retained investment is measured at fair value at that date and the fair value is regarded as its fair value on initial recognition as a financial asset. The difference between the previous carrying amount of the associate attributable to the retained interest and its fair value is included in the determination of the gain or loss on disposal of the associate. The Group accounts for all amounts previously recognized in other comprehensive income in relation to that associate on the same basis as would be required had that associate directly disposed of the related assets or liabilities.

When a Group entity transacts with its associate, profits and losses resulting from the transactions with the associate are recognized in the Group’s consolidated financial statements only to the extent that interests in the associate are not related to the Group.

i. Property, plant and equipment

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

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

Depreciation on property, plant and equipment is recognized using the straight-line method. Each significant part is depreciated separately. The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.

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

j. Investment properties

Investment properties are properties held to earn rentals and/or for capital appreciation. Investment properties also include land held for a currently undetermined future use.

Investment properties are initially measured at cost, including transaction costs. Subsequent to initial recognition, investment properties are measured at cost less accumulated depreciation and accumulated impairment loss. Depreciation is recognized using the straight-line method.

For a transfer of classification from property, plant and equipment to investment properties, the deemed cost of the property for subsequent accounting is its carrying amount at the end of owner-occupation.

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

k. Intangible assets

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

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

l. Impairment of property, plant and equipment, investment properties, right-of-use assets and intangible assets

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

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

When an impairment loss is subsequently reversed, the carrying amount of the corresponding asset or cash-generating unit is increased to the revised estimate of its recoverable amount, but only to the extent of the carrying amount that would have been determined had no impairment loss been recognized for the asset or cash-generating unit in prior years. A reversal of an impairment loss is recognized in profit or loss.

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m. Financial instruments

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

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

1) Financial assets

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

a) Measurement category

Financial assets are classified into the following categories: Financial assets at FVTPL, financial assets at amortized cost and investments in equity instruments at FVTOCI

i. Financial assets at FVTPL

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

Financial assets at FVTPL are subsequently measured at fair value, with dividends or interest and any remeasurement gains or losses on such financial assets are recognized in other gains or losses. Fair value is determined in the manner described in Note 32.

ii. Financial assets at amortized cost

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

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

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

Interest income is calculated by applying the effective interest rate to the gross carrying amount of such a financial asset, except for:

i) Purchased or originated credit-impaired financial assets, for which interest income is calculated by applying the credit-adjusted effective interest rate to the amortized cost of such financial assets; and
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ii) Financial assets that are not credit-impaired on purchase or origination but have subsequently become credit-impaired, for which interest income is calculated by applying the effective interest rate to the amortized cost of such financial assets in subsequent reporting periods.

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

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

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

iii. Investments in equity instruments at FVTOCI

On initial recognition, the Group may make an irrevocable election to designate investments in equity instruments as at FVTOCI. Designation as at FVTOCI is not permitted if the equity investment is held for trading or if it is contingent consideration recognized by an acquirer in a business combination.

Investments in equity instruments at FVTOCI are subsequently measured at fair value with gains and losses arising from changes in fair value recognized in other comprehensive income and accumulated in other equity. The cumulative gain or loss will not be reclassified to profit or loss on disposal of the equity investments; instead, it will be transferred to retained earnings.

Dividends on these investments in equity instruments are recognized in profit or loss when the Group’s right to receive the dividends is established, unless the dividends clearly represent a recovery of part of the cost of the investment.

b) Impairment of financial assets and contract assets

The Group recognizes a loss allowance for expected credit losses on financial assets at amortized cost (including accounts receivable), as well as contract assets.

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

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

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default events on a financial instrument that are possible within 12 months after the reporting date.

For internal credit risk management purposes, the Group determines that the following situations indicate that a financial asset is in default (without taking into account any collateral held by the Group):

i. Internal or external information shows that the debtor is unlikely to pay its creditors.
ii. When a financial asset is more than 365 days past due unless the Group has reasonable and corroborative information to support a more lagged default criterion.

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

c) Derecognition of financial assets

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

On derecognition of a financial asset at amortized cost in its entirety, the difference between the asset’s carrying amount and the sum of the consideration received and receivable is recognized in profit or loss. On derecognition of an investment in a debt instrument at FVTOCI, the difference between the asset’s carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss that had been recognized in other comprehensive income is recognized in profit or loss. However, on derecognition of an investment in an equity instrument at FVTOCI, the cumulative gain or loss which had been recognized in other comprehensive income is transferred directly to retained earnings, without recycling through profit or loss.

2) Equity instruments

Equity instruments issued by a Group entity are classified as equity in accordance with the substance of the contractual arrangements and the definitions of an equity instrument.

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

The repurchase of the Company’s own equity instruments is recognized in and deducted directly from equity. No gain or loss is recognized in profit or loss on the purchase, sale, issuance or cancellation of the Company’s own equity instruments.

3) Financial liabilities

a) Subsequent measurement

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

b) Derecognition of financial liabilities

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

n. Revenue recognition

The Group identifies contracts with customers, allocates the transaction price to the performance

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obligations and recognizes revenue when performance obligations are satisfied.

Revenue from the sale of goods

Revenue from the sale of goods comes from sales of cement, ready mixed concrete and gypsum board panels. Sales of cement, ready mixed concrete and gypsum board panels are recognized as revenue when the goods are shipped because it is the time when the customer has full discretion over the manner of distribution, has the primary responsibility for sales to future customers and bears the risks of obsolescence. Accounts receivable and contract assets are recognized concurrently. Certain payments, which are retained by the customer as specified in the contract, are intended to ensure that the Group adequately completes all of its contractual obligations. Such retention receivables are recognized as contract assets until the Group satisfies its performance obligations. When the customer initially purchases cement, the transaction price received is recognized as a contract liability until the goods have been delivered to the customer.

o. Leases

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

1) The Group as lessor

Leases are classified as finance leases whenever the terms of a lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

Lease payments (less any lease incentives payable) from operating leases are recognized as income on a straight-line basis over the terms of the relevant leases.

When a lease includes both land and building elements, the Group assesses the classification of each element separately as a finance or an operating lease based on the assessment as to whether substantially all the risks and rewards incidental to ownership of each element have been transferred to the lessee. The lease payments are allocated between the land and the building elements in proportion to the relative fair values of the leasehold interests in the land element and building element of the lease at the inception of a contract. If the allocation of the lease payments can be made reliably, each element is accounted for separately in accordance with its lease classification. When the lease payments cannot be allocated reliably between the land and building elements, the entire lease is generally classified as a finance lease unless it is clear that both elements are operating leases; in which case, the entire lease is classified as an operating lease.

2) The Group as lessee

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

Right-of-use assets are initially measured at cost, which comprises the initial measurement of lease liabilities. Right-of-use assets are subsequently measured at cost less accumulated depreciation and impairment losses and adjusted for any remeasurement of the lease liabilities. Right-of-use assets are presented on a separate line in the consolidated balance sheets.

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

Lease liabilities are initially measured at the present value of the lease payments. The lease payments are discounted using the interest rate implicit in a lease, if that rate can be readily determined. If that rate cannot be readily determined, the Group uses the lessee’s incremental borrowing rate.

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Subsequently, lease liabilities are measured at amortized cost using the effective interest method, with interest expense recognized over the lease terms. The Group remeasures the lease liabilities with a corresponding adjustment to the right-of-use-assets. However, if the carrying amount of the right-of-use assets is reduced to zero, any remaining amount of the remeasurement is recognized in profit or loss. Lease liabilities are presented on a separate line in the consolidated balance sheets.

p. Borrowing costs

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

Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization.

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

q. Employee benefits

1) Short-term employee benefits

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

2) Retirement benefits

Payments to defined contribution retirement benefit plans are recognized as an expense when employees have rendered service entitling them to the contributions.

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

Net defined benefit liability (asset) represents the actual deficit (surplus) in the Group’s defined benefit plan. Any surplus resulting from this calculation is limited to the present value of any refunds from the plans or reductions in future contributions to the plans.

r. Taxation

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

1) Current tax

The Group determines its current income (loss) according to the regulations established by the jurisdictions of the tax return to calculate its income tax payable (recoverable).

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

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

2) Deferred tax

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

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

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

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

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

3) Current and deferred taxes

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

5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

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

Based on the assessment of the Group's management, the accounting policies, estimates, and assumptions adopted by the Group has not been subject to material accounting judgements, estimates and assumptions uncertainty.

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6. CASH AND CASH EQUIVALENTS

Cash on hand Checking accounts and demand deposits Cash equivalent (investments with original maturities less than 3 months) Time deposits (a) Repurchase agreements collateralized by bonds (b)		December 31	December 31
		2023 $ 461 313,886 1,054,563 49,400 $ 1,418,310	2022 $ 518 729,324 54,622 -
			$ 784,464

a. The ranges of interest rates for time deposits were 1.1% ～ 1.16% and 0.32%~4.80% per annum as of December 31, 2023 and 2022.
b. The ranges of interest rates for repurchase agreements collateralized by bonds were 1.2% ～ 1.23% per annum as of December 31, 2023.

7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

Financial assets mandatorily classified as at FVTPL-Current Non-derivative financial assets Domestic Listed shares and emerging market shares Mutual funds Financial assets mandatorily classified as at FVTPL- Non-current Non-derivative financial assets Limited Partnership		December 31	December 31
		2023 $ 13,578 394 $ 13,972 $ 47,558	2022 $ 80,984 427
			$ 81,411
			$ 43,733

8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

Investments in equity instruments at FVTOCI-Current Domestic investments Listed shares and emerging market shares Investments in equity instruments at FVTOCI-Non-current Domestic investments Listed OTC Private Equity Unlisted shares		December 31
		2023 2022 $ 2,691,567 $ 2,261,853 $ 591,800 $ 510,400 1,399,204 1,890,604 $ 1,991,004 $ 2,401,004

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

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Chinese Products Promotion Center completed its liquidation in August 2023 and returned a share capital of NT$2,125 thousand. Relevant other interests – unrealized gains on financial assets at fair value through other comprehensive income of NT$1,620 thousand are transferred to retained earnings.

9. FINANCIAL ASSETS AT AMORTIZED COST

Current Time deposits with original maturity of more than 3 months (a) Pledged time deposits (a) Non-current Pledged time deposits (a) Refundable deposits		December 31	December 31
		2023 $ 127,283 67 $ 127,350 $ 8,010 8,985 $ 16,995	2022 $ 107,290 67 $ 107,357 $ 5,510 5,784 $ 11,294

a. The ranges of interest rates for time deposits and pledged time deposits with original maturities of more than 3 months were approximately 1.25%-5.47% and 1.00%-1.44% per annum as of December 31, 2023 and 2022, respectively. The information on pledged time deposits is set out in Note 34.
b. Refer to Note 10 for information relating to the credit risk management and impairment of investments in financial assets at amortized cost.

10. CREDIT RISK MANAGEMENT FOR INVESTMENTS IN DEBT INSTRUMENTS

Investments in debt instruments were classified as at amortized cost.

Carrying amounts Financial assets at amortized cost - current Financial assets at amortized cost - non-current		December 31	December 31
		2023 $ 127,350 16,995 $ 144,345	2022 $ 107,357 11,294 $ 118,651

The Group invests only in debt instruments that have low credit risk for the purpose of impairment assessment. The credit rating information is supplied by independent rating agencies. In determining the expected credit losses for debt instrument investments, the Group considers the historical default rates of each credit rating supplied by external rating agencies, the current financial condition of debtors, and the future prospects of the industries. Due to the debt instrument investments have low credit risk and sufficient ability to settle contractual cash flows, as of December 31, 2023 and 2022, no expected credit losses have been recognized in financial assets measured at amortized cost.

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11. NOTES RECEIVABLE, ACCOUNTS RECEIVABLE (INCLUDING RELATED PARTIES)

Notes receivable At amortized cost Notes receivable - operating Notes receivable - non-operating Accounts receivable (Including related parties) At amortized cost Less: Allowance for impairment loss		December 31	December 31
		2023 $ 566,922 333 $ 567,255 $ 1,614,768 9,678 $ 1,605,090	2022 $ 536,731 333 $ 537,064 $ 1,465,455 19,237 $ 1,446,218

a. Notes receivable

The Group analyzed notes receivable was not past due based on past due status, and the Group did not recognize an expected credit loss for notes receivable as of December 31, 2023 and 2022.

b. Accounts receivable (Including related parties)

The average collection period for receivables due to sales was between 30 to 90 days. No interest was charged on accounts receivable. In order to minimize credit risk, the management of the Company has delegated a team responsible for determining credit limits, credit approvals and other monitoring procedures to ensure that follow-up action is taken to recover overdue debts. In addition, the Group reviews the recoverable amount of each individual trade debt at the end of the reporting period to ensure that adequate allowance is made for possible irrecoverable amounts. In this regard, the management believes the Group’s credit risk was significantly reduced.

The Group recognizes loss allowance based on the use of lifetime expected credit losses on accounts receivable. The expected credit losses on accounts receivable are estimated using a provision matrix by reference to past default experience of the debtor and an analysis of the debtor’s current financial position, adjusted for general economic conditions of the industry in which the debtors operate and an assessment of both the current as well as the forecast direction of economic conditions at the reporting date. As the Group’s historical credit loss experience does not show significantly different loss patterns for different customer segments, the provision for loss allowance based on past due status is not further distinguished according to the Group’s different customer base.

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

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The following table details the loss allowance of accounts receivables based on the Group’s provision matrix.

December 31, 2023

Expected credit loss rate Gross carrying amount Loss allowance (Lifetime ECL) Amortized cost		Less than 30 Days 0.82%`～`0.13% $ 1,010,499 ( 1,210 ) $ 1,009,289		31 to 60 Days 0.37%`～`0.94% $ 370,838 ( 2,537 ) $ 368,301		61 to 90 Days 0.88%`～`1.35% $ 131,779 ( 1,640 ) $ 130,139		91 to 120 Days 2.31%`～`2.96% $ 67,430 ( 2,115 ) $ 65,315		121 to 150 Days 6.35%`～`13.41% $ 27,765 ( 2,013 ) $ 25,752		151 to 365 Days 3.78%`～`54.09% $ 2,691 ( 163 ) $ 2,528		Over 365 Days 0% $ 3,766 - $ 3,766		Total
											2					$ 1,614,768 ( 9,678 ) $ 1,605,090

December 31, 2022

Expected credit loss rate Gross carrying amount Loss allowance (Lifetime ECL) Amortized cost		Less than 30 Days 0.10%`～`5.48% $ 1,013,800 ( 2,969 ) $ 1,010,831		31 to 60 Days 0.27%`～`1.45% $ 260,123 ( 1,115 ) $ 259,008		61 to 90 Days 0.67%`～`2.11% $ 120,513 ( 1,362 ) $ 119,151		91 to 120 Days 2.17%`～`3.68% $ 29,878 ( 895 ) $ 28,983		121 to 150 Days 0.49%`～`10.58% $ 5,285 ( 551 ) $ 4,734		151 to 365 Days 7.53%`～`44.98% $ 34,008 ( 10,497 ) $ 23,511		Over 365 Days 100% $ 1,848 ( 1,848 ) $ -		Total
									1		2					$ 1,465,455 ( 19,237 ) $ 1,446,218

The movements of the loss allowance of contract asset and accounts receivable (Including related parties) were as follows:

For the year of 2023

Balance at January 1 Less: Reversal for the year Less: Written off for the year Balance at December 31 For the year of 2022	Contract Asset (Including relatedparties) $ 1,549 ( 1,179 ) - $ 370	Accounts Receivable (Including relatedparties) $ 19,237 ( 6,863 ) ( 2,696) $ 9,678		Total
	(	( (	( (	$ 20,786 8,042 ) 2,696) $ 10,048

Balance at January 1 Less: Allowance (reversal) for the year Balance at December 31	Contract Asset (Including relatedparties) $ 1,746 ( 197) $ 1,549	Accounts Receivable (Including relatedparties) $ 5,124 14,113 $ 19,237		Total
	(			$ 6,870 13,916 $ 20,786

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12. INVENTORIES

Merchandise Finished goods Work in process Raw materials and supplies		December 31	December 31
		2023 $ 33,165 125,498 9,990 219,720 $ 388,373	2022 $ 68,903 91,106 23,180 210,794 $ 393,983

The cost of inventories recognized as cost of goods sold for the years ended December 31, 2023 and 2022 was $ 6,260,222 thousand and $ 5,689,489 thousand, respectively.

For the years ended December 31, 2022, the cost of goods sold included loss for market price decline and obsolete and slow-moving inventories amounting to $461 thousand.

13. SUBSIDIARIES

Subsidiaries included in the consolidated financial statements were as follows:

Investor Universal Cement Corporation `〞` `〞` `〞` `〞` `〞` `〞` `〞` Universal Investment Corporation `〞` `〞` `〞`	Investee Chiayi Concrete Industrial Corporation Huanchung Cement International Corporation Kaohsiung Harbor Transport Company Universal Investment Corporation Universal Concrete Industrial Corporation Uneo Incorporated Li Yong Development Corporation Tainan Concrete Industrial Corp. Universal Concrete Industrial Corporation Chiayi Concrete Industrial Corporation Huanchung Cement International Corporation Tainan Concrete Industrial Corp.	Nature of Activities Manufacturing and marketing of ready-mixed concrete Manufacturing, marketing, importing and exporting of cement and cement clinker Trucking operation Investment activities Manufacturing and marketing of ready-mixed concrete and gravel Marketing of electronic products Investment activities, trading for real estate and leasing business Manufacturing and marketing of ready-mixed concrete Manufacturing and marketing of ready-mixed concrete and gravel Manufacturing and marketing of ready-mixed concrete Manufacturing, marketing, importing and exporting of cement and cement clinker Manufacturing and marketing of ready-mixed concrete	Proportion of Ownership December 31 2023 2022 Remark 86.63 86.63 - 69.99 69.99 - 100.00 100.00 - 100.00 100.00 - 58.18 58.12 a 100.00 100.00 - 100.00 100.00 - 67.45 67.45 b 0.87 0.87 - 0.01 0.01 - 0.01 0.01 - 0.33 0.33 b

a. The Company acquired 8 thousand shares held by the non-controlling interest of Universal Concrete Industrial Corp. in November 2023, resulting in an increase in shareholding ratio. Please refer to Note 29.
b. The Company acquired 759 thousand shares held by the non-controlling interest of Tainan Concrete Industrial Corp. from January to September in 2022, resulting in an increase in shareholding ratio. Please refer to Note 29. In addition, the company acquired control of Tainan Concrete Industrial Corp. in March 2022 and included in subsidiaries. Please refer to Note 28.
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14. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

Material associate Lioho Machine Works Ltd. a. Material associates Name of Associate Lioho Machine Works Ltd.		December 31
		2023 2022 $ 10,804,634 $ 10,618,566 Proportion of Ownership and Voting Rights
		December 31
		2023 2022 29.86% 29.86%

Refer to Table 6 “Information on Investees” for the nature of activities, principal place of business and country of incorporation of the associates.

The share of net income and other comprehensive income from associates under equity method were accounted for based on the audited financial statements.

The summarized financial information below represents amounts shown in the financial statements of Lioho Machine Works Ltd. which were prepared in accordance with IFRSs and adjusted by the Group for equity accounting purposes.

	December 31	December 31
2023 $ 36,184,500 For the Year Ended		2022 $ 35,561,344
		December 31
(	2023 $ 10,690,916 $ 2,815,952 $ 689,919 ) $ 447,907	2022 $ 12,040,246
		$ 2,756,092
		$ 545,750
		$ 179,162

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15. PROPERTY, PLANT AND EQUIPMENT

Cost Balance at January 1, 2022 Additions Disposals Acquired control of subsidiary (Note 28) Balance at December 31, 2022 Accumulated depreciation and impairment Balance at January 1, 2022 Depreciation expense Disposals Impairment loss Balance at December 31, 2022 Carrying amounts at December 31, 2022 Cost Balance at January 1, 2023 Additions Disposals Reclassification Balance at December 31, 2023 Accumulated depreciation and impairment Balance at January 1, 2023 Depreciation expense Disposals Impairment loss Balance at December 31, 2023 Carrying amounts at December 31, 2023	Land $ 4,604,982 222,325 ( 2,493 ) 1,105,512 $ 5,930,326 $ - - - - $ - $ 5,930,326 $ 5,930,326 - ( 504,586 ) - $ 5,425,740 $ - - - - $ - $ 5,425,740		Buildings $ 2,051,247 5,108 - 1,898 $ 2,058,253 $ 1,174,173 30,300 - - $ 1,204,473 $ 853,780 $ 2,058,253 6,507 - 24,007 $ 2,088,767 $ 1,204,473 30,730 - - $ 1,235,203 $ 853,564	Machinery and equipment $ 3,465,513 24,396 ( 18,012 ) 592 $ 3,472,489 $ 3,243,601 37,736 ( 18,011 ) - $ 3,263,326 $ 209,163 $ 3,472,489 22,554 ( 8,356 ) - $ 3,486,687 $ 3,263,326 38,615 ( 8,356 ) - $ 3,293,585 $ 193,102	Transportation equipment $ 666,801 10,952 ( 489 ) - $ 677,264 $ 508,339 33,140 ( 489 ) - $ 540,990 $ 136,274 $ 677,264 51,100 ( 9,512 ) - $ 718,852 $ 540,990 36,243 ( 9,332 ) - $ 567,901 $ 150,951	Other equipment $ 775,355 10,721 ( 3,042 ) 49 $ 783,083 $ 566,379 21,109 ( 3,042 ) - $ 584,446 $ 198,637 $ 783,083 31,798 ( 7,567 ) 21,182 $ 828,496 $ 584,446 22,856 ( 7,567 ) - $ 599,735 $ 228,761		Construction inprogress $ 922,295 38,229 - - $ 960,524 $ 103,005 - - 274,161 $ 377,166 $ 583,358 $ 960,524 68,020 - ( 45,189) $ 983,355 $ 377,166 - - 116,111 $ 493,277 $ 490,078	Total
									$ 12,486,193 311,731 ( 24,036 ) 1,108,051 $ 13,881,939 $ 5,595,497 122,285 ( 21,542 ) 274,161 $ 5,970,401 $ 7,911,538 $ 13,881,939 179,979 ( 530,021 ) - $ 13,531,897 $ 5,970,401 128,444 ( 25,255 ) 116,111 $ 6,189,701 $ 7,342,196

The Group sold the land of Yancheng Section, Nan District, Tainan City to non-related party in September 2023. The gains on the sale were $611,911 thousand and included in non-operating income.

There are indications of impairment due to the expected lower production capacity of certain equipment in our Lujhu gypsum board plant. Therefore, the Group performed an impairment test in 2023 and 2022, recognized an impairment loss of $116,111 thousand and $274,161 thousand in non-operating expenses.

The future recoverable amount is determined using the replacement cost method, taking into account all costs required to replace or build an entirely new asset under the current condition, less the physical depreciation, functional depreciation, and economic depreciation incurred to the assets of appraisal.

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

Buildings Main buildings 20-60 years Outbuildings and construction 2-16 years Engineering systems 9-16 years Machinery and equipment 2-21 years Transportation equipment 2-7 years Other equipment 2-20 years

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16. LEASE ARRANGEMENTS

a. Right-of-use assets

	December 31	December 31
2023 $ 1,682 200,986 19,760 $ 222,428 For the Year Ended		2022 $ 2,102 246,568 15,279
		$ 263,949
		December 31
	2023 2022 $ 10,626 $ 59,390 $ 836 $ 843 46,932 46,747 4,379 4,332 $ 52,147 $ 51,922 December 31	2022 $ 59,390
		$ 843 46,747 4,332
		$ 51,922
	2023 2022 $ 53,990 $ 52,153 $ 175,887 $ 218,710 December 31	2022 $ 52,153
		$ 218,710
2023 2022 1.71%`～`2.36% 1.422% - 1.71% 0.9%`～`1.71% 0.9% - 1.71% 0.9%`～`1.95% 0.9% - 1.95%

b. Lease liabilities

c. Material lease-in activities and terms

The Group leases certain land, buildings and machinery for the use of plants and offices with lease terms of 3 to 10 years. The Group is prohibited from subleasing or transferring all or any portion of the land and buildings leased from Taiwan International Port Corporation without the lessor’s consent.

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d. Other lease information

Expenses relating to short-term leases Expenses relating to low-value assets leases Total cash outflow for leases	For the Year Ended	For the Year Ended	December 31
		2023 $ 21,496 $ 765 $ 76,139	2022 $ 10,901
			$ 585
			$ 66,127

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

17. INVESTMENT PROPERTIES

Cost Balance at January 1, 2022 Additions Disposals Balance at December 31, 2022 Accumulated depreciation and impairment Balance at January 1, 2022 Disposals Depreciation expense Balance at December 31, 2022 Carrying amounts at December 31, 2022 Cost Balance at January 1 and December 31, 2023 Accumulated depreciation and impairment Balance at January 1, 2023 Depreciation expense Balance at December 31, 2023 Carrying amounts at December 31, 2023		Land $ 987,568 3,956 114,650) $ 876,874 $ 80,167 17,903 ) - $ 62,264 $ 814,610 Land $ 876,874 $ 62,264 - $ 62,264 $ 814,610		Buildings $ 169,977 - 24,705) $ 145,272 $ 141,544 24,705 ) 1,163 $ 118,002 $ 27,270 Buildings $ 145,272 $ 118,002 1,163 $ 119,165 $ 26,107		Total
	( (		( (		( (	$ 1,157,545 3,956 139,355) $ 1,022,146 $ 221,711 42,608 ) 1,163 $ 180,266 $ 841,880 Total
						$ 1,022,146 $ 180,266 1,163 $ 181,429 $ 840,717

As of December 31, 2023 and 2022, the Group has not yet completed the property registration of the land, both are amounting to $113,247 thousand because of the restriction in the regulations but the property has been secured with mortgage registration.

The Group sold the land of Gangzitou Section, Liujia District, Tainan City and the land of Shalun Section, Pitou Township, Changhua County to non-related party in September and November 2022. The gains on the sale were $403,203 thousand, included in non-operating income.

The investment properties are depreciated using the straight-line method over 10-61 years of useful lives.

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The fair values of the investment properties of the Group as at December 31, 2023 and 2022 were $2,072,466 thousand and $1,991,690 thousand respectively. The fair values were determined by the independent appraisal company on each balance sheet date in the past three years with reference to similar real estate fair value of the transaction price is based on market evidence, or the company's management refers to the actual transaction price in nearby areas.

The maturity analysis of lease payments receivable under operating leases of investment properties were as follows:

Year 1 Year 2 Year 3 Year 4 Year 5 Year 5 onwards	December 31
	2023 2022 $ 14,702 $ 12,117 7,167 6,658 7,176 6,592 7,176 6,689 7,118 6,689 3,451 10,234 $46,790 $48,979

18. OTHER INTANGIBLE ASSETS

		Licenses and		Computer
	Patents	Franchises	Trademarks	Software	Total

Cost
Balance at January 1, 2022	$ 8,678	$ 5,762	$ 20	$ 8,934	$ 23,394
Additions	404	-	24	5,817	6,245

Balance at December 31,	$ 9,082	$ 5,762	$ 44	$ 14,751	$ 29,639
2022

Accumulated amortization
Balance at January 1, 2022	$ 5,101	$ 3,868	$ 11	$ 6,010	$ 14,990
Amortization expense	907	236	3	1,511	2,657

Balance at December 31, 2022	$ 6,008	$ 4,104	$ 14	$ 7,521	$ 17,647


Carrying amounts at December 31, 2022	$ 3,074	$ 1,658	$ 30	$ 7,230	$ 11,992


Cost
Balance at January 1, 2023	$ 9,082	$ 5,762	$ 44	$ 14,751	$ 29,639
Additions	649	-	-	2,152	2,801

Balance at December 31, 2023	$ 9,731	$ 5,762	$ 44	$ 16,903	$ 32,440


Accumulated amortization
Balance at January 1, 2023	$ 6,008	$ 4,104	$ 14	$ 7,521	$ 17,647
Amortization expense	923	237	4	2,981	4,145

Balance at December 31, 2023	$ 6,931	$ 4,341	$ 18	$ 10,502
					$ 21,792

Carrying amounts at December 31, 2023	$ 2,800	$ 1,421	$ 26	$ 6,401
					$ 10,648

Other intangible assets are amortized on a straight-line basis over the estimated useful lives as follows:

3-20 years

Patents

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Licenses and franchises 10 years Trademarks 10 years Computer Software 2-5 years

19. BORROWINGS

a. Short-term borrowings

Unsecured borrowings Line of credit borrowings		December 31	December 31
		2023 $ 1,700,000	2022 $ 2,290,000

The range of interest rates was 1.75%~1.88% and 1.60%~1.98% per annum as of December 31, 2023 and 2022.

b. Short-term bills payable

Commercial papers Less: Unamortized discount on bills payable			December 31	December 31
		2023 $ 275,000 215 $ 274,785		2022 $ 1,000,000 912 $ 999,088

The Group did not provide any collateral over these balance.

Outstanding short-term bills payable as follows:

Promissory Institutions December 31, 2023 Taiwan Finance Co., Ltd. Mega Bills Finance Co., Ltd. December 31, 2022 International Bills Finance Co., Ltd. Ta Ching Bills Finance Co., Ltd. Mega Bills Finance Co., Ltd.	Nominal Amount $ 80,000 195,000 $ 275,000 $ 300,000 100,000 600,000 $ 1,000,000		Discount Amount $ 28 187 $ 215 $ 281 71 560 $ 912	Carrying Value $ 79,972 194,813 $ 274,785 $ 299,719 99,929 599,440 $ 999,088	Interest Rate
					1.798% 1.828%`～`1.928% 2.138% 2.158% 2.088% ~ 2.188%

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c. Long -term borrowings - December 31, 2023

Unsecured loans Line of credit borrowings Less: Long-term borrowings due within one year Long-term borrowings	Amount
	$ 500,000 500,000
	$-

The Group acquired new bank loans in February and September of 2023, amounting to $280,000 thousand and $220,000 thousand respectively. These loans are due in March and October 2024, with an annual interest rate of 1.795%.

20. NOTES PAYABLE AND ACCOUNTS PAYABLE (INCLUDING RELATED PARTIES)

Notes payable and accounts payable (including related parties) were resulted from operating activities. The average credit period on purchases is 30 to 65 days. The Group has financial risk management policies in place to ensure that all payables are paid within the pre-agreed credit terms. Therefore, no interest was charged on the payables.

21. OTHER PAYABLES AND OTHER LIABILITIES

Current Other payable Payable for salaries or bonus Payable for remuneration to directors Payable for remuneration to employees Payable for freight Payable for annual leave Payables for equipment Payable for taxes Others Other liabilities Temporary receipts Receipts in advance Others		December 31	December 31	December 31
		2023 $ 127,931 53,921 50,211 20,625 12,883 11,194 9,002 120,253 $ 406,020 $ 14,673 7,161 234 $ 22,068		2022 $ 128,794 38,021 35,350 21,094 10,772 11,358 17,658 107,113 $ 370,160 $ 22,380 340 250 $ 22,970

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22. RETIREMENT BENEFIT PLANS

a. Defined contribution plans

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

b. Defined benefit plans

The defined benefit plan adopted by the Group in accordance with the Labor Standards Law is operated by the government. Pension benefits are calculated on the basis of the length of service and average monthly salaries of the 6 months before retirement. The Group contributes amounts equal to 2%~3% of total monthly salaries and wages to a pension fund administered by the pension fund monitoring committee. Pension contributions are deposited in the Bank of Taiwan in the committee’s name. Before the end of each year, the Group assesses the balance in the pension fund. If the amount of the balance in the pension fund is inadequate to pay retirement benefits for employees who conform to retirement requirements in the next year, the Group is required to fund the difference in one appropriation that should be made before the end of March of the next year. The pension fund is managed by the Bureau of Labor Funds, Ministry of Labor (“the Bureau”); the Group has no right to influence the investment policy and strategy.

In 2022, our company fully settled all employee retirement benefits and applied to the Bureau of Labor Insurance, MOL to close the pension fund. As of December 31, 2023, we are currently awaiting approval from the bureau to receive the remaining balance in the pension fund.

During the fiscal year 2023, the subsidiary, Universal Concrete Industrial Corporation, settled the accumulated retirement benefits under the previous scheme with all employees eligible under the Labor Standards Act. The company withdrew the reserved retirement funds held at the Taiwan Bank and completed the process in April of the same year. The application was reviewed and approved by the Labor Affairs Bureau, Taichung City Government. The remaining balance of $55 thousand from the settlement account was retrieved and recorded as other income.

The amounts included in the consolidated balance sheets in respect of the Group’s defined benefit plans were as follows:

Present value of defined benefit obligation Fair value of plan assets Net defined benefit liability		December 31	December 31
	( (	2023 $ 5,297 20,274) ( $ 14,977) (	2022 $ 22,704 38,128) $ 15,424)

Movements in net defined benefit liability were as follows:

Balance at January 1, 2022 Service cost Current service cost Liquidation benefit	Present Value of the Defined Benefit Obligation $ 258,000 3,342 ( 29,800 )	Fair Value of the Plan Assets ($ 222,959) - ( 14,229 )	Net Defined Benefit Liability	Net Defined Benefit Liability
	(	( (	(	$ 35,041 3,342 44,029 ) (Continued)

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Net interest expense (income) Recognized in profit or loss ( Remeasurement Return on plan assets (excluding amounts included in net interest) Actuarial gain - changes in financial assumptions ( Actuarial loss - experience adjustments Recognized in other comprehensive income ( Contributions from the employer Benefits paid ( liquidation ( Balance at December 31, 2022 Current service cost Liquidation benefit Net interest expense (income) Recognized in profit or loss Remeasurement Return on plan assets (excluding amounts included in net interest) Actuarial loss - changes in demographic assumptions Actuarial loss - changes in financial assumptions Actuarial loss - experience adjustments Recognized in other comprehensive income Contributions from the employer Benefits paid ( Balance at December 31, 2023	1,934 ( 24,524) ( - ( 2,061 ) 680 1,381) ( - ( 10,882 ) 198,509) $ 22,704 ( 250 - ( 270 ( 520 ( - ( 65 162 569 796 ( - ( 18,723) $ 5,297 (	1,699) 15,928) ( 2,725 ) ( - ( - 2,725) ( 4,047 ) ( 9,022 ( 198,509 $ 38,128) ( - 465 ) ( 281) ( 746) ( 44 ) ( - - - 44) 79 ) ( 18,723 $ 20,274) (	235 40,452) 2,725 ) 2,061 ) 680 4,106) 4,047 ) 1,860 ) - $ 15,424) 250 465 ) 11) 226) 44 ) 65 162 569 752 79 ) - $ 14,977)

An analysis by function of the amounts recognized in profit or loss in respect of the defined benefit plans is as follows:

Operating costs Selling and marketing expenses General and administrative expenses Research and development expenses	For the Year Ended	December 31
	2023 $ - ( - ( ( 226) ( - ( ($ 226) (	2022 $ 25,370) 6,803) 6,836) 1,443)
		$ 40,452)

Through the defined benefit plans under the Labor Standards Law, the Group is exposed to the following risks:

1) Investment risk: The plan assets are invested in domestic and foreign equity and debt securities, bank deposits, etc. The investment is conducted at the discretion of the Bureau or under the mandated management. However, in accordance with relevant regulations, the return generated by plan assets should not be below the interest rate for a 2-year time deposits with local banks.
2) Interest risk: A decrease in the government and corporate bond interest rate will increase the present value of the defined benefit obligation; however, this will be partially offset by an increase in the return on the plan’s debt investments.
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3) Salary risk: The present value of the defined benefit obligation is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the present value of the defined benefit obligation.

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

Discount rate Expected rate of salary increase	December 31
	2023 2022 1.28% 1.4% 1.5% - 1.625% 1.63% - 4%

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

Discount rate 0.5% increase 0.5% decrease Expected rate of salary increase 0.5% increase 0.5% decrease		December 31	December 31
	( (	2023 $ 89) ( $ 96 $ 86 $ 81) (	2022 $ 791) $ 834 $ 805 $ 770)

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

The expected contributions to the plan for the next year The average duration of the defined benefit obligation		December 31	December 31
		2023 $ 109 2 – 24 years	2022 $ 934 7 – 9 years

23. EQUITY

a. Share capital

Number of shares authorized (thousands) Capital stock authorized Number of shares issued and fully paid (thousands) Capital stock issued		December 31	December 31
		2023 1,000,000 $ 10,000,000 673,217 $ 6,732,175	2022 1,000,000 $ 10,000,000 653,609 $ 6,536,092

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On June 16, 2023, the shareholders' meeting passed a resolution for the 2022 earnings distribution proposal of the Group, with the distribution of 19,608 thousand shares in stock dividends and par value NT$ 10 per share. The paid-in share capital following the capital increase attaining NT$6,732,175 thousand. The above capitalization of retained earnings was approved by the Securities and Futur es Bureau of the Financial Supervisory Commission with effective registration on July 3, 2023, and with July 29, 2023 approved by a resolution of the Board of Directors as the capital increase record date.

b. Capital surplus

May be used to offset a deficit, distributed as cash dividends, or transferred to share capital (Note) Treasury share transactions Differences between the actual equity value of subsidiaries acquired or disposed and its carrying amounts. May be used to offset a deficit only Share of changes in equities of associates Overdue dividends not collected by shareholders		December 31	December 31
		2023 $ 21,606 57,377 22,260 22,476 $ 123,719	2022 $ 21,606 57,156 22,260 22,477
			$ 123,499

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

c. Retained earnings and dividend policy

Under the dividend policy as set forth in the amended Articles, if the Company makes profit in a fiscal year, the profit shall be first utilized to pay taxes, offset losses of previous years, set aside as legal reserve with 10% of the remaining profit, set aside or reverse a special reserve in accordance with the laws and regulations, and lastly, together with any undistributed retained earnings, serve as the basis of a distribution plan proposed by the Company’s board of directors in accordance with the resolution of the shareholders’ meeting pertaining to the distribution of dividends and bonus to shareholders. For the policies on the distribution of employees’ compensation and remuneration of directors and supervisors after the amendment, refer to employees’ compensation and remuneration of directors and supervisors in Note 25-g.

According to the Company’s Articles, dividends can be distributed by way of stock dividends and cash dividends. However, the ratio for stock dividend shall not exceed 50% of the total distribution unless the value of cash dividends is less than $ 0.5 per share. The distribution of dividends can be adjusted by shareholders based on the Company’s profit, capital status, and operating requirement.

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

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When a special reserve is appropriated for cumulative net debit balance reserves from prior period and cumulative net increases in fair value measurement of investment properties from prior period, the sum of net profit for current period and items other than net profit that are included directly in the unappropriated earnings for current period is used if the prior unappropriated earnings is not sufficient.

The appropriations of 2022 and 2021 earnings have been approved in the shareholders’ meetings on June 16, 2023 and June 14, 2022, respectively. The appropriations and dividends per share were as follows:

Legal reserve Cash dividends Stock dividends Cash dividends per share (NT$) Stock dividends per share (NT$)		2022 $ 204,243 $ 980,414 $ 196,083 $ 1.5 $ 0.3		2021
				$ 108,808 $ 653,609 $ - $ 1 $ -

The appropriation of earnings for 2023 had been proposed by the Company’s board of directors on March 15, 2024. The appropriation and dividends per share were as follows:

Legal reserve Cash dividends Stock dividends Cash dividends per share (NT$) Stock dividends per share (NT$)		2023
		$ 210,852 $ 1,211,791 $ 134,643 $ 1.8 $ 0.2

The appropriation of earnings for 2023 will subject to the resolution of the shareholders’ meeting.

d. Special reserves

First-time adoption IFRSs		December 31	December 31
		2023 $ 3,185,793	2022 $ 3,185,793

Because the increase in the retained earnings caused by the first-time adoption of IFRSs was insufficient to be appropriated for provision, the Company had provided for special reserve based on the increase of the retained earnings, an adjustment that was recorded per Company policy on first-time adoption.

e. Other equity items
1) Exchange differences on translating the financial statements of foreign operations

Balance at January 1 Share of exchange difference of associates accounted for using the equity method Balance at December 31	For the year Ended December 31	For the year Ended December 31
	2023 ( $ 799,476) ( 210,016) ( $ 1,009,492)	2022 ( $ 945,843) 146,367
		( $ 799,476)

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

Balance at January 1 Recognized for the year Unrealized gain (loss) - equity instruments Share from subsidiaries and associates accounted for using the equity method Other comprehensive income/(loss) during the year The cumulative profit or loss arising from the disposals of equity instruments is transferred to retained earnings. Reclassification of equity instruments from associates accounted for using the equity method to retained Earnings Balance at December 31	For the year Ended	For the year Ended	December 31
		2023 $ 1,711,898 31,022 848 31,870 ( 1,620) 859 $ 1,743,007	2022 $ 1,638,872 73,912 191 74,103 ( 1,077) - $ 1,711,898

3) Remeasurement of defined benefit plans

Balance at January 1 Remeasurement Remeasurement on defined benefit plans related income tax Share from associates accounted for using the equity method Balance at December 31 4) Other equity items Balance at January 1 and December 31 f. Non-controlling interests Balance at January 1 Share in profit (loss) for the year Other comprehensive income/(loss) during the year Unrealized Gains (losses) on financial assets at fair value through profit or loss Remeasurement on defined benefit plans Remeasurement on defined benefit plans related income tax Non-controlling dividend distribution Acquired non-controlling interests of subsidiaries (Note 28) Disposal of partial equity (Note 29) Balance at December 31		For the Year Ended December 31	For the Year Ended December 31
		2023 2022 $ 89,394 $ 69,720 ( 550) 3,344 110 ( 669) 2,300 16,999 $ 91,254 $ 89,394 For the Year Ended December 31
		2023 2022 $ (17,217) $ (17,217) For the Year Ended December 31
		2023 $ 608,574 239,494 122 ( 202) 40 ( 38,742) - ( 334) $808,952	2022 $ 151,011 142,097 ( 45) 762 ( 152) ( 9,075) 479,869 ( 155,893)
			$608,574

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24. REVENUE

Revenue from contracts with customers Revenue from sale of goods Revenue from rendering of services a. Contract balances Notes and accounts receivable (Including related parties) Contract assets - current Sale of goods Less: Allowance for impairment loss Contract assets from related parties Sale of goods Less: Allowance for impairment loss Contract liabilities - current Sale of goods		For the Year Ended December 31 2023 2022 $ 7,798,798 $ 7,051,858 3,564 3,931 $ 7,802,362 $ 7,055,789 December 31 January 1 2023 2022 2022 $ 2,172,345 $ 1,983,282 $ 1,661,465 $ 1,850 $ 2,198 $ 3,262 370 440 637 1,480 1,758 2,625 - $ 5,546 $ 5,546 - 1,109 1,109 - 4,437 4,437 $ 1,480 $ 6,195 $ 7,062 $ 2,359 $ 2,084 $ 10,275	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
						2022 $ 7,051,858 3,931 $ 7,055,789 January 1
		2023 $ 2,172,345 $ 1,850 370 1,480 - - - $ 1,480 $ 2,359			2022 $ 1,661,465 $ 3,262 637 2,625 $ 5,546 1,109 4,437 $ 7,062 $ 10,275

In accordance with the terms of the contract, the customers retain a portion of contract price and the Group recognizes the amount as contract assets before completing the contractual obligations. The Group considers the historical expected loss rates and the state of the industry in estimating expected loss.

Expected credit loss rate Gross carrying amount of retention receivable Allowance for impairment loss (Lifetime ECLs)		December 31	December 31
		2023 20% $ 1,850 ( 370) $ 1,481	2022 20% $ 7,744 ( 1,549) $ 6,195

The movements of the loss allowance of contract assets refer to Note 11.

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b. Disaggregation of revenue

Concrete Cement Gypsum board panels Others	For the Year Ended	For the Year Ended	December 31
		2023 $ 5,001,709 1,710,966 1,053,982 35,705 $ 7,802,362	2022 $ 4,611,923 1,468,607 934,356 40,903
			$ 7,055,789

25. PROFIT BEFORE INCOME TAX

a. Interest income

For the Year Ended	For the Year Ended	December 31	December 31
2023 $ 6,132 3,845 $ 9,977 For the Year Ended		2022 $ 1,982 - $ 1,982 December 31	2022 $ 1,982 -
			$ 1,982
	2023 $ 17,748 231,873 27,034 $ 276,655	2022 $ 24,340 227,609 17,792
		$ 269,741

b. Other income
c. Other gains and losses

For the Year Ended	For the Year Ended	December 31
2023 $ 942 - 612,623 42,755 - ( 116,111) - ( 3,832) $ 536,377 For the Year Ended		2022 $ 3,463 403,203 3,968 ( 12,244) 373,540 ( 274,161) ( 5,143) ( 3,874) $ 488,752 December 31
	$ 52,336 3,335 $ 55,671	$ 38,000 3,671
		$ 41,671

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e. Depreciation and amortization

Property, plant and equipment Right-of-use assets Investment properties Intangible assets An analysis of depreciation - by function Operating costs Operating expenses Others (as non-operating income and expense) An analysis of amortization - by function Operating costs Operating expenses	For the Year Ended	For the Year Ended	December 31
		2023 $ 128,444 52,147 1,163 4,145 $ 185,899 $ 119,627 60,964 1,163 $ 181,754 $ 572 3,573 $ 4,145	2022 $ 122,285 51,922 1,163 2,657
			$ 178,027
			$ 114,607 59,600 1,163
			$ 175,370
			$ 378 2,279
			$ 2,657

f. Employee benefits expense

For the Year Ended	For the Year Ended	December 31
2023 $ 613,673 59,504 79,811 752,988 28,141 ( 226) ( 27,915 ( $ 780,903 For the Year Ended		2022 $ 582,086 55,709 61,496
		699,291
		25,013 40,452)
		15,439)
		$ 683,852
		December 31
	2023 $ 497,677 283,226 $ 780,903	2022 $ 412,634 271,218
		$ 683,852

g. Employees’ compensation and remuneration of directors

The Company accrued employees’ compensation and remuneration of directors at the rates no less than 1% and no higher than 3%, respectively, of net profit before income tax, employees’ compensation, and remuneration of directors.

The employees’ compensation and remuneration of directors for the year ended December 31, 2023 and 2022 have been approved on March 15, 2024 and March 16, 2023, respectively as follows:

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Accrual rate

For the Year Ended	For the Year Ended	December 31
2023 1.8% 1.8% For the Year Ended		2022 1.37% 1.37% December 31
	2023 $ 42,971 $ 42,971	2022 $ 31,290
		$ 31,290

If there is a change in the amounts after the annual consolidated financial statements were authorized for issue, the differences will be recognized in the next year as a change in accounting estimate.

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

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

26. INCOME TAX

a. Major components of tax expense recognized in profit or loss

Current tax In respect of the current year Income tax on unappropriated earnings Adjustments for prior years Deferred tax In respect of the current year	For the Year Ended	For the Year Ended	December 31
	( (	2023 $ 266,429 37,325 5,340) 298,414 63,074) ( $ 235,340	2022 $ 194,506 11,818 945 207,269 7,432) $ 199,837

A reconciliation of accounting profit and income tax expenses is as follows:

Profit before tax Income tax expense calculated at the statutory rate Tax-exempt income Non-deductible expenses (income) in determining taxable income Unrecognized deductible temporary differences	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
	( (	2023 $ 2,582,592 $ 516,518 267,334 ) ( 76,624 ) ( 23,229	2022 $ 2,383,329 $ 476,665 122,644 ) 235,784 ) 40,700 (Continued)

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Net operating loss carryforwards used Loss carryforwards utilized for the current year ( Additional income tax under the Alternative Minimum Tax Act Additional income tax on unappropriated earnings Land value increment tax Income tax adjustments on prior years (	3,308 160 ) 2,500 37,325 1,918 5,340) $ 235,340	1,812 - - 11,818 26,325 945
		$ 199,837

b. Income tax recognized in other comprehensive income

Deferred tax In respect of the current year Remeasurement of defined benefit plans Current tax assets and liabilities Current tax liabilities Income tax payable	For the Year Ended	For the Year Ended	December 31
		2023 2022 $ 150 ($ 821) December 31
		2023 $ 157,831	2022 $ 121,860

c. Current tax assets and liabilities

d. Deferred tax assets and liabilities

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

For the year of 2023

Deferred Tax Assets Temporary differences Allowance for impairment loss Defined benefit obligation Unrealized exchange losses Unrealized loss for losses of Inventory valuation and obsolescence Unrealized payable promotion expenses Loss carryforwards Others Deferred Tax Liabilities Temporary differences Land value increment tax Defined benefit obligation Unrealized exchange gains		Opening Balance $ 1,254 5,645 - 255 5,326 - 1,418 $ 13,898 $ 1,296,376 8,725 617 $ 1,305,718		Acquired in a business combination Recognized in Profit or Loss $ - ( $ 429 ) - ( 76 ) - 160 - ( 123 ) - 2,686 577 - ( 272) $ - $ 2,523 $ - ( $ 59,934 ) - - - ( 617) $ - ($ 60,551)	Recognized in Other Comprehensive Income $ - 90 - - - - - $ 90 $ - ( 60 ) - ($ 60)	Closing Balan	Closing Balan
							$ 825 5,659 160 132 8,012 577 1,146 $ 16,511 $ 1,236,442 8,665 - $ 1,245,107

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For the year of 2022

Deferred Tax Assets Temporary differences Allowance for impairment loss Defined benefit obligation Unrealized foreign exchange loss Unrealized loss for losses of Inventory valuation and obsolescence Unrealized payable promotion expenses Others Deferred Tax Liabilities Temporary differences Land value increment tax Defined benefit obligation Unrealized foreign exchange gain		Opening Balance $ 433 15,025 98 163 2,075 2,896 $ 20,690 $ 1,179,798 8,013 - $ 1,187,811		Acquired in a business combination Recognized in Profit or Loss $ - $ 821 - ( 8,926 ) - ( 98 ) - 92 - 3,251 - ( 1,478) $ - ($ 6,338) $ 131,310 ( $ 14,732 ) - 345 - 617 $ 131,310 ($ 13,770)	Recognized in Other Comprehensive Income $ - ( 454 ) - - - - ($ 454) $ - 367 - $ 367		Closing Balan
							$ 1,245 5,645 - 255 5,326 1,418 $ 13,898 $ 1.296.376 8,725 617 $ 1.305.718

e. Deductible temporary differences, unused loss carryforwards and unused investment credits for which no deferred tax assets have been recognized in the consolidated balance sheets.

Loss carryforwards Expire in 2033 Expire in 2032 Expire in 2031 Expire in 2030 Expire in 2029 Expire in 2028 Expire in 2027 Expire in 2026 Expire in 2025 Expire in 2024 Expire in 2023 Expire in 2022		December 31	December 31
		2023 $ 16,552 9,059 3,887 8,003 10,273 57,779 69,078 47,759 58,819 40,128 23,322 - $ 344,659	2022 $ - 9,059 3,887 8,003 10,273 57,779 69,078 47,759 58,819 40,128 24,120 3,368
			$ 332,273

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Deductible temporary differences Losses of Inventory valuation and obsolescence Impairment losses on assets		December 31	December 31
		2023 $ 34,027 677,870 $ 711,897	2022 $ 34,027 561,759
			$ 595,786

f. Income tax examinations

Income tax returns through 2021 of the Uneo Incorporated, Li Yong Development Corporation, Kaohsiung Harbor Transport Company, Chiayi Concrete Industrial Corporation, Huanchung Cement International Corporation, Universal Investment Corporation, Tainan Concrete Industrial Corporation, Universal Concrete Industrial Corporation and the Company have been assessed by the tax authorities.

27. EARNINGS PER SHARE

The average number of shares outstanding for EPS calculation has been retroactively adjusted for the issuance of stock dividends and employee stock bonuses. The date is on July 29, 2023. The basic and diluted earnings per share from January 1 to December 31, 2022 were adjusted retrospectively were as follows:

Basic earnings per share Diluted earnings per share		Unit: NT$ Per Share Before Retrospective Adjustment After Retrospective Adjustment $ 3.12 $ 3.03 $ 3.11 $ 3.02	Unit: NT$ Per Share Before Retrospective Adjustment After Retrospective Adjustment $ 3.12 $ 3.03 $ 3.11 $ 3.02	Unit: NT$ Per Share Before Retrospective Adjustment After Retrospective Adjustment $ 3.12 $ 3.03 $ 3.11 $ 3.02
				$ 3.03 $ 3.02

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

Net Profit for the Year Number of shares		December 31	December 31
		2023 $ 2,107,758	2022 $ 2,041,395

Unit: Thousand shares

Weighted average number of ordinary shares in computation of basic earnings per share Effect of potentially dilutive ordinary shares: Employees’ compensation Weighted average number of ordinary shares used in the computation of diluted earnings per share		December 31	December 31
		2023 673,217 1,801 675,018	2022 673,217 1,747
			674,964

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Since the Group offered to settle compensation paid to employees in cash or shares, the Group assumed the entire amount of the compensation would be settled in shares and the resulting potential shares were included in the weighted average number of shares outstanding used in the computation of diluted earnings per share, as the effect is dilutive. Such dilutive effect of the potential shares is included in the computation of diluted earnings per share until the number of shares to be distributed to employees is resolved in the following year.

28. ACQUISITION OF SUBSIDIARIES

a. Acquisition of subsidiaries

The Company originally held an equity interest in Tainan Concrete Industrial Corporation, which was accounted for using the equity method as an associate. However, in March 2022, the Company acquired additional shares in Tainan Concrete for a cash consideration of $22,080 thousand, increasing its ownership interest from 49.08% to 52.28% (which has since increased to 67.78% as of December 31, 2022). With majority voting rights and control obtained, Tainan Concrete is now considered a subsidiary of the Company.

In accordance with IFRS3, the company derecognize the investment in related parties that originally adopted the equity method based on the fair value of the original investment on the date of acquisition of control, and recognizes the difference between the fair value and the book amount as disposal gains and losses, and subsequently recognizes it in accordance with the acquisition method. List the assets and liabilities of subsidiaries in the consolidated report.

The gain and loss of the fair value and book amount are calculated as follows:

Fair value of original investment Investment book value of acquisition of control Recognized gains		Amount
	(	$ 493,544 130,103) $ 363,441

b. Assets and liabilities assumed on the date of acquisition of control

Current asset Cash Financial assets at amortized cost - current Financial assets at FVTOCI - current Other current assets Non-current assets Property, plant and equipment Current liabilities Notes payable Current tax liabilities Other payables Other current liabilities Non-current liabilities Deferred tax liabilities	Tainan Concrete Industrial Corp.	Tainan Concrete Industrial Corp.
	( ( ( ( (	$ 12,780 15,000 1,741 169 1,108,051 $ 7 ) 338 ) 486 ) 8 ) 131,310) $ 1,005,592

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c. Non-controlling interests

The non-controlling interests (47.72% of ownership interests) of Tainan Concrete Industrial Corp. is measured by the amount of $479,869 thousand , which is the proportional share of recognized value of identifiable net assets.

d. Gain recognized in bargain purchase transaction

Cash payments Plus`：`Fair value of originally Holding shares Plus`：`Non-controlling interests Less`：`Fair value of identifiable net assets Gain recognized in bargain purchase transaction		Tainan Concrete Industrial Corp.
	( (	$ 22,080 493,544 479,869 1,005,592) $ 10,099)

e. Net cash outflow of acquired subsidiary

Cash payments Less`：`Cash Balance of Acquisition		Tainan Concrete Industrial Corp.
	(	$ 22,080 12,780) $ 9,300

29. EQUITY TRANSACTIONS WITH NON-CONTROLLING INTERESTS

In November 2023 and from May to July 2022, the Group acquired shares held by the non-controlling interest of Universal Concrete Industrial Corporation and Tainan Concrete Industrial Corporation, respectively. And its shareholding increased from 58.99% to 59.05% and from 52.28% to 67.78%, respectively.

The above transactions were accounted for as equity transactions since the Group did not cease to have control over these subsidiaries.

Cash payments The carrying amount of the subsidiary's net assets that shall be transferred to non-controlling interest based on relative equity changes Difference in equity transactions Adjustment accounts for difference in equity transactions Capital surplus – Actual Difference between consideration and carrying amount of subsidiaries acquired or disposed	Obtaining non-controlling interests 2023 2022 ( $ 113 ) ( $ 99,682 ) 334 155,893 $ 221 $ 56,211 $ 221 $ 56,211	Obtaining non-controlling interests 2023 2022 ( $ 113 ) ( $ 99,682 ) 334 155,893 $ 221 $ 56,211 $ 221 $ 56,211
	(	2023 $ 113 ) ( 334 $ 221 $ 221

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30. CASH FLOWS INFORMATION

Cash used in obtaining property, plant and equipment by the Group during 2023 and 2022 was as below:

Increase in property, plant and equipment Decrease in payables on equipment Increase in prepaid on equipment Total cash paid	For the Year Ended	For the Year Ended	December 31
		2023 $ 179,979 164 15,427 $ 195,570	2022 $ 311,731 2,554 5,925
			$ 320,210

31. CAPITAL MANAGEMENT

The Group requires significant amounts of capital to build and expand its production facilities and equipment. The Group manages its capital in a manner to ensure that it has sufficient and necessary financial resources for working capital needs, capital asset purchases, research and development activities, dividend payments, debt service requirements and other business requirements associated with its existing and future operations.

32. FINANCIAL INSTRUMENTS

a. Fair value of financial instruments that are not measured at fair value

The Group believes that the carrying amounts of financial instruments that are not measured at fair value, including cash and cash equivalents, accounts receivable, financial assets at amortized cost, short-term loans, short-term bills payable, accounts payable, long-term borrowings due within one year, and guarantee deposits received, recognized in the financial statements approximate their fair value.

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

December 31, 2023

Financial assets at FVTPL Listed shares Mutual funds Limited partnership Financial assets at FVTOCI Investments in equity instruments Listed shares Unlisted shares		Level 1 $ 13,578 394 - $ 13,972 $2,691,567 - $2,691,567		Level 2 $ - - - $ - $ 591,800 - $ 591,800		Level 3 $ - - 47,558 $ 47,558 $ - 1,399,204 $ 1,399,204		Total
								$ 13,578 394 47,558 $ 61,530 $3,283,367 1,399,204 $4,682,571

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December 31, 2022

Financial assets at FVTPL Listed shares Mutual funds Limited partnership Financial assets at FVTOCI Investments in equity instruments Listed shares Unlisted shares		Level 1 $ 80,984 427 - $ 81,411 $ 2,261,853 - $ 2,261,853		Level 2 $ - - - $ - $ 510,400 - $ 510,400		Level 3 $ - - 43,733 $ 43,733 $ - 1,890,604 $ 1,890,604		Total
								$ 80,984 427 43,733 $ 125,144 $ 2,772,253 1,890,604 $ 4,662,857

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

2) Adjustments for financial instruments measured using level 3 fair value

For the year of 2023

Balance at January 1 Recognized in income(other gains and losses) Recognized in other comprehensive income (unrealized valuation gain or loss on financial assets at fair value through other comprehensive income) Recognized in income (dividend income) Return of capital from reduction of share capital Return of capital from liquidation Balance at December 31	Financial assets at fair value through profit or loss $ 43,733 3,825 - - - - $ 47,558	Financial assets at fair value through other comprehensive income $ 1,890,604 - ( 477,710 ) 11,746 ( 23,311 ) ( 2,125) $ 1,399,204		Total
		( ( (	( ( (	$ 1,934,337 3,825 477,710 ) 11,746 23,311 ) 2,125) $ 1,446,762

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For the year of 2022

Balance at January 1 Purchased Recognized in income (other gains and losses) Recognized in other comprehensive income (unrealized valuation gain or loss on financial assets at fair value through other comprehensive income) Balance at December 31	Financial assets at fair value through profit or loss $ 22,022 25,000 ( 3,289 ) - $ 43,733	Financial assets at fair value through other comprehensive income $ 1,540,374 - - 350,230 $ 1,890,604		Total
	(		(	$ 1,562,396 25,000 3,289 ) 350,230 $ 1,934,337

3) Input and measurement technique of Level 2 fair value measurement.
Category of financial instrument Measurement technique and input value Investment of Equity Instrument Purchase of stock via private offering which is subject to a three-year-lock-up period. In light of the impact on the target to be measured due to the restriction of transaction, a discount is imposed to reflect the restricted liquidity of the stock. The target to be measure is the stock of a public listed company. The Closing price at the day of measurement was adopted as the fair value of an unrestricted stock price. The fair value of the restricted stock price is then derived via the Black-Scholes model.
4) Valuation techniques and inputs applied for Level 3 fair value measurement

a) The fair values of unlisted equity securities in ROC was estimated by the marketing valuation method. This method is based on the industry category, evaluation and operations of similar companies, or the net equity of the companies.

b) Limited partnership was estimated based on the net equity.

c. Categories of financial instruments

Financial assets Measured at fair value through profit or loss – mandatory measured at fair value through profit or loss Financial assets at amortized cost (Note 1) Financial assets at FVTOCI – Equity instruments Financial liabilities Financial liabilities at amortized cost (Note 2)	December 31
	2023 2022 $ 61,530 $ 125,144 3,735,589 2,887,057 4,682,571 4,662,857 3,854,172 4,561,922

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1) The balances include financial assets at amortized cost, which comprise cash and cash equivalents, notes receivable, net accounts receivable (including related parties), other receivables, and financial assets at amortized cost (current and non-current).
2) The balances included financial liabilities measured at amortized cost, which comprise short-term borrowings, short-term bills payable, notes payable, accounts payable (including related parties), other payables, long-term borrowings due within one year and bonds payable and guarantee deposits received.
d. Financial Risk Management Objectives and Policies

The Group’s major financial instruments include equity investments, accounts receivable, accounts payables, loans and lease liabilities. The financial management department of the Group provides services to the business departments, coordinates access to domestic and international financial markets, monitors and manages the financial risks relating to the operations of the Group through internal risk reports which analyze the exposures by degree and magnitude of risks. These risks include market risk (including currency risk, interest risk and other price risk), credit risk and liquidity risk.

1) Market risk

The Group’s activities exposed it primarily to the financial risks of changes in interest rate risk (see (a) below) and other price risk (see (b) below).

a) Interest rate risk

The Group was exposed to interest rate risk arising from short-term borrowing at New Taiwan dollar (NTD) market rates of overweight interest rates. Due to lower NTD borrowing rates and small borrowing position, the interest rate sensitivity is lower, and the interest rate risk is little risk to the Company.

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

Fair value interest rate risk Financial assets Financial liabilities Cash flow interest rate risk Financial assets Financial liabilities	December 31
	2023 2022
	$ 1,248,308 $ 173,273 504,662 1,269,951 283,200 682,388 2,200,000 2,290,000

b) Other price risk

The Group was exposed to equity price risk through its investments in listed equity securities and mutual funds. The Group manages this exposure by maintaining a portfolio of investments with different risks. The Group’s equity price risk was mainly concentrated on equity instruments operating in shares and open-end mutual funds quoted in the Taiwan Stock Exchange. In addition, the Group will evaluate the price by the closing price of the equity investments and the net asset value of the fund every month.

55 -

Sensitivity analysis

The sensitivity analyses below were determined based on the exposure to equity price risks at the end of the reporting period.

If equity prices of domestic listed equity securities(excluding private placement), which was hold by the Group calculated by $ 2,691,567 thousand and $ 2,261,853 thousand, had been 1% higher/lower, the pre-tax other comprehensive income for the year ended December 31, 2023 and 2022 would have increased/decreased by $ 26,916 thousand and $ 22,619 thousand, as a result of the changes in fair value of financial assets at FVTOCI.

2) Credit risk

Financial assets are exposed to the potential effects of outstanding contracts between the Group and its counterparty or other parties. Such effects include the credit risk concentration, components, contractual amounts, and other receivables of financial products engaged by the Group.

As at the end of the reporting period, the Group’s maximum exposure to credit risk is due to the failure of counterparties to discharge an obligation, which is from the carrying amount of financial assets are recognized from consolidated financial reports.

In addition to the following paragraph, the main customers of its credit are good, and the Group will regularly annually review the customer’s credit status, appropriately adjust the credit line, and will require customers to provide the necessary guarantees or trade by cash in special situations. The sales department understands the customer’s credit status through external peer visits. The customers mentioned above, had no significant credit risk exposure.

Part of the concrete customers of the Group are individuals and small-scale enterprises, except for a few large customers are concrete construction companies, industry characteristics resulting in some small-scale enterprises. In addition to using credit limit controls to reduce credit risks and the relevant proceedings to protect their claims, the Group has set adequate allowance for bad debts for higher credit risk customers in accordance with company policy. The credit risk arising from its maximum possible amount is disclosed in the Note 11.

The Group has no significant concentration of credit risk.

3) Liquidity risk

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

a) Liquidity and interest risk rate table for non-derivative financial liabilities

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

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

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December 31, 2023

Non-derivative financial liabilities Non-interest bearing Lease liabilities Variable interest rate liabilities Fixed interest rate liabilities	On Demand or Less than 3 Month $ 1,367,804 13,867 1,986,757 275,000 $ 3,643,428		3 Months to 1 Year $ - 40,942 223,213 - $ 264,155		1 Year to 5 Year $ 11,583 146,472 - - $ 158,055	6 Year to 10 Year	6 Year to 10 Year
							$ - 28,992 - - $ 28,992

December 31, 2022

December 31, 2022
Non-derivative financial liabilities Non-interest bearing Lease liabilities Variable interest rate liabilities Fixed interest rate liabilities	On Demand or Less than 3 Month $ 1,263,155 13,687 2,300,067 1,000,000 $ 4,576,909	3 Months to 1 Year $ - 40,804 - - $ 40,804	1 Year to 5 Year $ 9,679 175,420 - - $ 185,099	6 Year to 10 Year
					$ - 47,908 - - $ 47,908

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

b) Financing facilities

Loan is an important resource of liquidity for the Company. As of December 31, 2023 and 2022, the short-term unsecured line of credit is $4,258,876 thousand, and $2,564,609 thousand, respectively.

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33. TRANSACTIONS WITH RELATED PARTIES

Transactions, balance, income and expenses between the Corporation and subsidiaries (related parties of the Corporation) had been eliminated on consolidation and are not disclosed in this note. Except as disclosed in other notes, details of transactions between the Group and other related parties are disclosed below.

a. Name and relationship of related party

Related Party Name CHC Resources Corp. Universal Construction Corp. Sheng Yuan Investment Corp. Bo-Chih Investment Co., Ltd. Yu-Sheng Investment Corp. Pan Asia Corp. Tainan Concrete Industrial Corp. PAO GOOD INDUSTRIAL CO., LTD.	Relationships of the Group
	The Group acts as key management The Group acts as key management The key management of the Group The key management of the Group (b) The key management of the Group The Group acts as juristic supervisor Associates (a) Other related parties

a) The subsidiary of our company since March 2022.

b) The chairman of our company since June 2023.

b. Sales of goods

Account Items Sales revenue	Related Parties Category The Group acts as key management Other related parties		For the Year Ended December 31	For the Year Ended December 31
			2023 $ 99,420 139,405 $ 238,825	2022 $ 88,323 65,968 $ 154,291

The prices and terms to related parties were not significantly different from transactions with third parties. The credit terms were 1 to 3 months.

c. Purchase of goods

Related Parties Category The Group acts as key management Other related parties	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2023 $ 320,171 9,269 $ 329,440	2022 $ 280,304 14,349 $ 294,653

The purchased of goods are mainly blast furnace slag and fly ash. The prices and terms to related parties were not significantly different from transaction with third parties. The credit terms were 30 to 65 days.

d. Contract assets- December 31, 2022

Related Party Category / Name Other related parties Pan Asia Corp. Less: Allowance for impairment loss		Amount
		$ 5,546 1,109 $ 4,437

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e. Receivables from related parties (Excluding contract assets)

Account Items Accounts receivable - related parties	Related Parties Category / Name Other related parties Pan Asia Corp. The Group acts as key management Less: Allowance for impairment loss		December 31	December 31
			2023 $ 47,430 11,422 102 $ 58,750	2022 $ 31,534 10,183 33 $ 41,684

The outstanding receivables from related parties are unsecured.

f. Payables to related parties

Account Items Accounts payable - related parties	Related Parties Category The Group acts as key management Other related parties		December 31	December 31
			2023 $ 32,250 1,809 $ 34,059	2022 $ 34,654 2,622 $ 37,276

The outstanding accounts payables from related parties are unsecured and would be paid in cash.

g. Lease arrangements - Group is lessee

Line Item Interest expense	Related Party Category Associates (Note)		Amount
			$ 38

Note ： The subsidiary of our company since March 2022.

The Group leased lands and buildings from related parties. The rental prices are determined with reference to the market standards and rentals payable monthly.

h. Lease arrangements - Group is lessor

The Group leased its office building to related parties under operating leases for a term of 1 to 2 years. The rental prices are determined with reference to the market standards and charged on a monthly basis.

Total lease payment to be collected in the future is summarized as follows:

Related Party Category The Group acts as key management The key management of the Group The chairman of our company		December 31	December 31
		2023 $ 3,207 46 23 $ 3,276	2022 $ 3,207 137 - $ 3,344

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Total lease revenue is summarized as follows:

Related Party Category The Group acts as key management The key management of the Group The chairman of our company	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2023 $ 5,498 57 12 $ 5,567	2022 $ 5,498 69 - $ 5,567

i. Compensation of key management personnel

Short-term employee benefits Post-employment benefits	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2023 $ 37,057 895 $ 37,952	2022 $ 43,942 760 $ 44,702

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

34. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

The following assets were provided as collateral for engineering performance bonds.

Pledged time deposits Current Non-current		December 31	December 31
		2023 $ 67 8,010 $ 8,077	2022 $ 67 5,510 $ 5,577

35. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

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

a. Unrecognized commitments are as follows:

Acquisition of property, plant and equipment		December 31	December 31
		2023 $ 70,912	2022 $ 93,003

b. As of December 31, 2023 and 2022, the promissory notes were $ 115,806 thousand and $ 139,493 thousand, respectively. These notes were provided as engineering performance bonds, which could be refunded when the guarantee is terminated.
c. As of December 31, 2023 and 2022, unused letters of credit for purchase of raw materials were $ 26,124 thousand and $ 5,391 thousand.
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36. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

The following information was aggregated by the foreign currencies other than Group’s individual functional currency and the exchange rates between foreign currencies and respective functional currency were disclosed. The significant financial assets and liabilities denominated in foreign currencies are as follows:

December 31, 2023

Financial Assets	Foreign Currencies (In Thousand) $ 1,007 916 97 Foreign Currencies (In Thousand) $ 1,558 903 153	Exchange Rate 30.705 4.33 33.98 Exchange Rate 30.71 4.41 32.72	Carrying Amount (In Thousand)
Monetary items USD RMB EUR December 31, 2022 Financial Assets			$ 30,935 3,962 3,295 Carrying Amount (In Thousand)
Monetary items USD RMB EUR			$ 47,852 3,979 5,006

The foreign currency risk of the Group is mainly exposed to USD. The following information was aggregated by the foreign currencies other than Group’s individual functional currency and the exchange rates between foreign currencies and respective functional currency were disclosed. The exchange rate gains and losses of foreign currencies with significance (including realized and non-realized) are summarized as follows:

Functional Currencies NTD	For the Year Ended December 31, 2023 Exchange Rate Net Foreign Exchange Gain 1(NTD:NTD) $ 942	For the Year Ended December 31, 2023 Exchange Rate Net Foreign Exchange Gain 1(NTD:NTD) $ 942	For the Year Ended December 31, 2023 Exchange Rate Net Foreign Exchange Gain 1(NTD:NTD) $ 942	For the Year Ended December 31, 2022	For the Year Ended December 31, 2022	For the Year Ended December 31, 2022
	Exchange Rate 1(NTD:NTD)			Exchange Rate 1 (NTD:NTD)		Net Foreign Exchange Gain
			$ 942			$ 3,463

37. SEPARATELY DISCLOSED ITEMS

a. Information about significant transactions and investees:
1) Financing provided to others. (Table 1)
2) Endorsements/guarantees provided. (Table 2)
3) Marketable securities held (excluding investment in subsidiaries and associates). (Table 3)
4) Marketable securities acquired and disposed of at costs or prices of at least NT$ 300 million or 20% of the paid-in capital. (N/A)
5) Acquisition of individual real estate at cost of at least NT$ 300 million or 20% of the paid-in capital. (N/A)
61 -
6) Disposal of individual real estate at a price of at least NT$ 300 million or 20% of the paid-in capital. (Table 4)
7) Total purchases from or sales to related parties amounting to at least NT$ 100 million or 20% of the paid-in capital. (Table 5)
8) Receivables from related parties amounting to at least NT$ 100 million or 20% of the paid-in capital. (N/A)
9) Trading in derivative instruments. (N/A)
10) Intercompany relationships and significant intercompany transactions. (Table 7)
b. Related information on investees. (Table 6)
c. Information on investments in mainland China
1) Information on any investee company in mainland China, showing the name, principal business activities, paid-in capital, method of investment, inward and outward remittance of funds, ownership percentage, net income or loss of investee and investment income or loss, carrying amount of the investment at the end of the period, repatriations of investment from the mainland China area. (N/A)
2) Any of the following significant transactions with investee companies in mainland China, either directly or indirectly through a third party, and their prices, payment terms, and unrealized gains or losses
- a) The amount and percentage of purchases and the balance and percentage of the related payables at the end of the period: (N/A)
- b) The amount and percentage of sales and the balance and percentage of the related receivables at the end of the period: (N/A)
- c) The amount of property transactions and the amount of the resultant gains or losses: (N/A)
- d) The balance of negotiable instrument endorsements or guarantees or pledges of collateral at the end of the period and the purposes: (N/A)
- e) The highest balance, the end of period balance, the interest rate range, and total current period interest with respect to financing of funds: (N/A)
- f) Other transactions that have a material effect on the profit or loss for the period or on the financial position, such as the rendering or receiving of services: (N/A)
d. Information on major shareholders: name, number and percentage of shareholding of shareholders with ownership achieving 5% and above. (Table 8)
62 -

38. SEGMENT INFORMATION

a. Operating segments information

The identification of reportable departments is based on the operation and management model of the Group management. Based on product categories, the identification is divided into departments such as building materials business and asset management center to provide information to key operating decision-makers for allocating resources and evaluating segment performance.

The Group’s reportable segments are as follows:

1) Building materials segment - manufacture and sell of cement, concrete and gypsum board and research segment.
2) Others - mainly the management segment of reinvested companies and segments that are not part of the building materials segment.
b. Segment revenues and operating results

The following was an analysis of the Group’s revenue and results from continuing operations by reportable segments:

For the year of 2023

Revenue from external customers Inter-segment revenues Total Segment revenues Segment profit and loss Interest expenses Profit before income tax		Building Materials Segment $ 7,766,657 22,532 $ 7,789,189 $ 1,230,028		Others $ 35,705 - $ 35,705 $ 2,455,277	Adjustment and Elimination $ - ( 22,532) ($ 22,532) $ 1,047,042		Total
					( (	( (	$ 7,802,362 - $ 7,802,362) $ 2,638,263 55,671) $ 2,582,592

For the year of 2022

Revenue from external customers Inter-segment revenues Total Segment revenues Segment profit and loss Interest expenses Profit before income tax		Building Materials Segment $ 7,014,887 22,692 $ 7,037,579 $ 1,311,303		Others $ 40,902 - $ 40,902 $ 1,333,353	Adjustment and Elimination $ - ( 22,692) ($ 22,692) ($ 219,656)		Total
					( ( (	( (	$ 7,055,789 - $ 7,055,789) $ 2,450,000 41,671) $ 2,383,329

Segment income represented profit before tax earned by each segment without income tax. These amounts provide information to key operating decision-makers for allocating resources and evaluating segment performance.

The chief operating decision maker of the Group makes decisions based on the operating results of each segment, there was no information about the assessment of assets and liabilities classified through business activity performance, thence only listing revenue and results of reportable segments.

63 -

c. Geographical information

The Group’s operations are mainly in Taiwan, ROC. The Group has no significant revenues from foreign customers. Please refer to consolidated balance sheets for the information of non-current assets.

d. Revenue from major products and services

Please refer to Note 24 (b).

e. Information about major customers

Single customer who contributed 10% or more to the Group’s revenue is as follows:

Name of the customer Hung Hsin Building Materials Ltd. (Note)	For the Year Ended December 31 of 2023 and 2022	For the Year Ended December 31 of 2023 and 2022	For the Year Ended December 31 of 2023 and 2022	For the Year Ended December 31 of 2023 and 2022
	Net operating income $ 703,039	% 9	Net operating income	%
			$ 624,940	9

Note : Revenue from selling cement

64 -

TABLE 1

UNIVERSAL CEMENT CORPORATION AND SUBSIDIARIES

FINANCING PROVIDED TO OTHERS FOR THE YEAR ENDED DECEMBER 31, 2023

(In Thousands of New Taiwan Dollars)

No. (Note 1)	Lender	Borrower	Financial Statement Account	Related Parties	Highest Balance for the period	Ending Balance	Actual Borrowing Amount	Interest Rate (%)	Nature for Financing	Business Transaction Amounts	Reasons for Short-term Financing	Allowance for Impairment Loss	Collateral	Collateral	Financing Limits for Each Borrower `（`Note 2`）`	Aggregate Financing Limits (Note 3)
													Item	Value
0 0 0 0 0	The Company The Company The Company The Company Universal Investment Corp.	Universal Investment Corporation Uneo Incorporated Universal Concrete Industrial Corporation Tainan Concrete Industrial Corp. Tainan Concrete Industrial Corp.	Other receivables Other receivables Other receivables Other receivables Other receivables	Yes Yes Yes Yes Yes	$ 800,000 100,000 300,000 300,000 250,000	$ 800,000 100,000 300,000 300,000 250,000	$ - - - - -	1.880 1.880 1.880 1.880 2.045	For short-term financing For short-term financing For short-term financing For short-term financing For short-term financing	$ - - - - -	Operating capital Operating capital Operating capital Operating capital Operating capital	$ - - - - -	None None Land and Plant None None	$ - 300,000 -	$ 8,747,673 8,747,673 8,747,673 8,747,673 434,942	$ 8,747,673 8,747,673 8,747,673 8,747,673 434,942

Note 1: a: “0” is the Company.

b: Subsidiaries are numbered from “1”.

Note 2: The upper limit for each borrower is 40% of the Company’s net asset value as stated in the latest financial statements; The upper limit for a subsidiary to a single enterprise is 40% of the net value of the subsidiary's most recent financial statements that have been audited (reviewed) by an accountant..

Note 3: The aggregate limit for each borrower is 40% of the Company’s net asset value as stated in the latest financial statements; The aggregate limit for a subsidiary to a single enterprise is 40% of the net value of the subsidiary's most recent financial statements that have been audited (reviewed) by an accountant.

65 -

TABLE 2

UNIVERSAL CEMENT CORPORATION AND SUBSIDIARIES

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

(In Thousands of New Taiwan Dollars)

No. (Note 1)	Endorser / Guarantor	Endorsee / Guarantee	Endorsee / Guarantee	Limits on Endorsement/ Guarantee Given on Behalf of Each Party (Note 3)	Maximum Amount Endorsed / Guaranteed During the Period	Outstanding Endorsement / Guarantee at the End of the Period (Note 6)	Actual Borrowing Amount	Amount Endorsed / Guaranteed by Collaterals	Ratio of Accumulated Endorsement/ Guarantee to Net Equity in Latest Financial Statements (%)	Aggregate Endorsement/ Guarantee Limit (Note 4 , Note 5, Note 7)	Endorsement/ Guarantee Given by Parent on Behalf of Subsidiaries	Endorsement/ Guarantee Given by Subsidiaries on Behalf of Parent	Endorsement/ Guarantee Given on Behalf of Companies in Mainland China
		Name	Relationship (Note 2)
0 1 2 3	The Company Kaohsiung Harbor Transport Company Universal Investment Corporation Universal Concrete Industrial Corporation	Universal Concrete Industrial Corporation Universal Investment Corporation Uneo Incorporated Universal Concrete Industrial Corporation The Company Universal Concrete Industrial Corporation The Company The Company	(1) (1) (1) (3) (2) (3) (2) (2)	$ 132,329 750,000 60,000 490,730 490,730 4,366,566 4,366,566 574,944	$ 120,000 400,000 50,000 306,992 319,928 122,521 443,909 157,561	$ 120,000 350,000 50,000 306,992 319,928 122,521 443,909 157,561	$ - 130,000 - - - - - -	$ - - - - - - - -	1 2 - 313 326 14 51 27	$ 21,869,182 21,869,182 21,869,182 981,458 981,458 8,733,131 8,733,131 574,944	Y Y Y N N N N N	N N N N Y N Y Y	N N N N N N N N

Note 1: a: “0” is the Company.

b: Subsidiaries are numbered from “1”.

Note 2: (1) The endorser / guarantor parent company owns directly and indirectly more than 50% voting shares of the endorsed / guaranteed subsidiary.

(2) The endorser / guarantor parent company owns directly and indirectly more than 90% voting shares of the endorsed / guaranteed company.

(3) The endorsed / guaranteed company owns directly and indirectly more than 50% voting shares of the endorser / guarantor parent company.

Note 3: The upper limit for the Company is equivalent to the capital of the endorsee; the upper limit for subsidiaries is equivalent to the net asset value of the subsidiaries as stated in its latest financial statements except that it is five times of the net asset value of Kaohsiung Harbor Transport Company and Universal Investment Corporation.

Note 4: The upper limit for the Company is equivalent to the net asset value of the Company.

Note 5: The upper limit for the subsidiary is equivalent to the net asset value of the subsidiary as stated in its latest financial statements, unless the Company or other subsidiaries give more guarantee.

Note 6: The limits were approved by the board of directors.

Note 7: The upper limit for the subsidiary is equivalent to ten times of the net asset value of the subsidiary as stated in its latest financial statements.

66 -

TABLE 3

UNIVERSAL CEMENT CORPORATION AND SUBSIDIARIES MARKETABLE SECURITIES HELD DECEMBER 31, 2023 (In Thousands of New Taiwan Dollars)

Holding Company Name	Type and Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account		December 31, 2023	December 31, 2023		Note
				Shares/ Units	Carrying Value	Percentage of Ownership (%)	Fair Value Or Net Equity
The Company Universal Investment Corporation	Listed shares Prince Housing & Development Corp. CTBC Financial Holding Co., Ltd. Far EasTone Telecommunications Co., Ltd. CHC Resources Co., Ltd. Creative Sensor Inc. Privately offered shares Creative Sensor Inc. Unlisted shares Grand Bills Finance Co., Ltd. Universal Cement Development Co., Ltd. Universal Venture Capital Co., Ltd. CTBC Investments Corp. Kaohsiung Rapid Transit Corp. Jie-Ho Development Co., Ltd. Huan Rong Hsin Resource Technology Corp. Mutual funds Cathay No. 2 Real Estate Investment Trust Listed shares Prince Housing & Development Corp. Tainan Spinning Co., Ltd. Teco Image Systems Co., Ltd. Privately offered shares Creative Sensor Inc.	The juristic director of the Company acts as juristic director - - The Company acts as juristic director Representative of the juristic director of the Company acts as the representative of juristic director Representative of the juristic director of the Company acts as the representative of juristic director The Company acts as juristic director The Company acts as juristic director - - - - - - The juristic director of the Company acts as juristic director The juristic director of the Company acts as juristic director - Representative of the juristic director of the Company acts as the representative of juristic director	Financial assets at FVTOCI - current Financial assets at FVTOCI - current Financial assets at FVTOCI - current Financial assets at FVTOCI - current Financial assets at FVTPL - current Financial assets at FVTOCI - non - current Financial assets at FVTOCI - non - current Financial assets at FVTOCI - non - current Financial assets at FVTOCI - non - current Financial assets at FVTOCI - non - current Financial assets at FVTOCI - non - current Financial assets at FVTOCI - non - current Financial assets at FVTOCI - non - current Financial assets at FVTPL - current Financial assets at FVTOCI - current Financial assets at FVTOCI - current Financial assets at FVTPL - current Financial assets at FVTOCI - non - current	40,621,948 28,441,983 306,219 17,020,254 158,000 13,000,000 43,999,488 24,864,000 1,400,000 1,981,995 1,286,063 171,131 600,000 24,000 38,526,900 55 523,000 9,000,000	$ 450,904 806,330 24,436 980,367 4,661 349,700 548,673 598,228 14,990 84,700 12,286 - - 394 427,649 1 8,917 242,100	2.50 0.14 0.01 6.85 0.11 8.72 8.14 16.44 1.16 1.05 0.46 0.16 30.00 - 2.37 - 0.46 6.04	$ 450,904 806,330 24,436 980,367 4,661 349,700 548,673 598,228 14,990 84,700 12,286 - - 394 427,648 1 8,917 242,100

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TABLE 3

UNIVERSAL CEMENT CORPORATION AND SUBSIDIARIES

MARKETABLE SECURITIES HELD DECEMBER 31, 2023

(In Thousands of New Taiwan Dollars)

Holding Company Name	Type and Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account		December 31, 2023	December 31, 2023		Note
				Shares/ Units	Carrying Value	Percentage of Ownership (%)	Fair Value Or Net Equity
Tainan Concrete Industrial Corporation	Unlisted shares Pan Asia (Engineers & Constructors) Corporation. Da Jen Venture Capital Co., Ltd. DarChan Venture Capital Co., Ltd. Limited partnership Taiwania Capital Buffalo Fund V, LP. Listed shares CTBC Financial Holding Co., Ltd. preferred stock C of CTBC Financial HoldingCo.,Ltd.	Subsidiary of the Company acts as juristic supervisor Representative of the juristic director of the Company acts as director Representative of the juristic director of the Company acts as supervisor - - -	Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTPL - non-current Financial assets at FVTOCI - current Financial assets at FVTOCI - current	3,102,803 673,200 4,000,000 - 60,000 2,987	83,993 16,303 40,031 47,559 1,704 177	2.71 8.06 3.64 3.23 - -	83,993 16,303 40,031 47,559 1,704 177

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TABLE 4

UNIVERSAL CEMENT CORPORATION AND SUBSIDIARIES

MARKETABLE SECURITIES ACQUIRED AND DISPOSED OF AT COSTS OR PRICES OF AT LEAST NT$300 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE YEARS ENDED DECEMBER 31, 2023

(In Thousands of New Taiwan Dollars)

Seller	Property	Event Date	Original Acquisition Date	Carrying Amount	Transaction Amount	Collection	Gain (Loss) on Disposal	Counterparty	Relationship	Purpose of Disposal	Price Reference	Other Terms
Tainan Concrete Industrial Corporation.	Land: No. 2972-1 and 2984-1, Yancheng Section, Nan District, Tainan City.	2023.03.15	1977.02.15 and 1980.11.10	$ 444,653`（`Note`）`	$ 1,122,830	the payment terms of the contract	$ 611,911`（`Note`）`	Shangfa Construction Co., Ltd.and Linxin Construction Ltd.	Non-related party	Revitalize assets	Appraisal report	`－`

Note: The merged company acquired the equity of Tainan Concrete Company in March 2022, and completed the acquisition price apportionment report in September of the same year. The book amount and disposal gains and losses are based on the premium generated from the acquisition transaction.

69 -

TABLE 5

UNIVERSAL CEMENT CORPORATION AND SUBSIDIARIES

TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES AMOUNTING TO OF AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE YEARS ENDED DECEMBER 31, 2023

(In Thousands of New Taiwan Dollars)

Buyer	Related Party	Relationship		Transaction Details	Transaction Details		Abnormal Transaction	Abnormal Transaction	Notes/Accounts Payable or Receivable	Notes/Accounts Payable or Receivable	Note
			Purchase/ Sale	Amount	% to Total	Payment Terms	Unit Price	Payment Terms	Ending Balance	% to Total
The Company	Kaohsiung Harbor Transport Company CHC Resources Corp. Pan Asia (Engineers & Constructors) Corporation.	Subsidiary The Group acts as key management The Group acts as supervisor	Purchase (Freight) Purchase Sale	$ 243,641 263,138 139,405	7 7 2	45 ~ 60 days after acceptance 30 ~ 65 days after acceptance 90 days of monthly settlement	Note Equivalent Equivalent	Equivalent Equivalent Equivalent	( $ 16,551 ) ( 23,183 ) 47,430	( 2 ) ( 3 ) 3

Note ： The purchase prices have no comparison with those from third parties.

70 -

TABLE 6

UNIVERSAL CEMENT CORPORATION AND SUBSIDIARIES

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

Investor Company	Investee Company	Location	Main Businesses and Products	Original Investment Amount	Original Investment Amount	Balance a	s of December 31, 2023	s of December 31, 2023	Net Income (Loss) of the Investee	Share of Profits/Losses of Investee	Note
				December 31, 2023	December 31, 2022	Shares	Percentage of Ownership	Carrying Amount
The Company Universal Investment Corporation	Huanchung Cement International Corporation Chiayi Concrete Industrial Corporation Kaohsiung Harbor Transport Company Universal Investment Corporation Universal Concrete Industrial Corporation Uneo Incorporated Li Yong Development Corporation Lioho Machine Works Ltd. Tainan Concrete Industrial Corporation Universal Concrete Industrial Corporation Chiayi Concrete Industrial Corporation Huanchung Cement International Corporation Tainan Concrete Industrial Corporation Lioho Machine Works Ltd.	Taichung city Chiayi County Kaohsiung city Taipei city Taichung city Taipei city Taipei city Taoyuan city Tainan city Taichung city Chiayi County Taichung city Tainan city Taoyuan city	Import, export, and sale of cement, cement material, fuel, and production Manufacturing and marketing of ready-mixed concrete Trucking operation Investment activities Manufacturing and marketing of ready-mixed concrete and gravel Marketing of electronic Products Investment activities, trading for real estate and leasing business Manufacturing and marketing of metal parts and automotive components Manufacturing and marketing of ready-mixed concrete and cement material Manufacturing and marketing of ready-mixed concrete and gravel Manufacturing and marketing of ready-mixed concrete Import, export, and sale of cement, cement material, fuel, and production Manufacturing and marketing of ready-mixed concrete and cement material Manufacturing and marketing of metal parts and automotive components	$ 69,993 22,643 74,580 650,000 33,887 291,671 20,000 174,997 238,180 858 5 13 178 93	$ 69,993 22,643 74,580 650,000 33,774 291,671 20,000 174,997 68,454 858 5 13 178 93	6,999,333 2,252,378 7,560,000 75,000,000 7,698,963 6,000,000 2,000,000 89,581,468 2,023,624 115,494 361 667 10,000 1,680	69.99 86.63 100.00 100.00 58.18 100.00 100.00 29.86 67.45 0.87 0.01 0.01 0.33 -	$ 117,559 41,180 98,146 872,621 339,014 18,940 19,281 10,804,541 1,087,279 858 5 13 178 93	$ 19,912 799 1,791 87,055 92,637 ( 15,324 ) ( 186 ) 2,815,952 1,039,224 - - - - -	$ 13,939 692 1,791 87,055 54,658 ( 15,324 ) ( 186 ) 840,843 411,126 - - - - -

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TABLE 7

UNIVERSAL CEMENT CORPORATION AND SUBSIDIARIES

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS FOR THE YEAR ENDED DECEMBER 31, 2023

(Amounts In Thousands of New Taiwan Dollars, Unless Specified Otherwise)

No.	Investee Company	Counterparty	Relationship (Note 1)		Transaction Details	Transaction Details	Transaction Details
				Financial Statement Accounts	Amount	Payment Terms	% to Total Sales or Assets
0 1 2	The Company Huanchung Cement International Corporation Universal Investment Corporation	Kaohsiung Harbor Transport Company Kaohsiung Harbor Transport Company Kaohsiung Harbor Transport Company Uneo Incorporated Uneo Incorporated Tainan Concrete Industrial Corporation Universal Concrete Industrial Corporation Universal Concrete Industrial Corporation Tainan Concrete Industrial Corporation	(1) (1) (1) (1) (1) (1) (3) (3) (3)	Freight expense Accounts payable Other payables Sales revenue Accounts receivable Interest income Sales revenue Accounts receivable Interest income	$ 243,641 16,551 18,047 22,532 1,818 2,734 209,723 77,551 272	The prices to related parties were not significantly different from those to third parties. Credit terms were 45 to 60 days after acceptance. The prices to related parties were not significantly different from those to third parties. Credit terms were 45 to 60 days after acceptance. The prices to related parties were not significantly different from those to third parties. Credit terms were 45 to 60 days after acceptance. The sales prices have no comparison with those from third parties, net 60 days after shipment. The sales prices have no comparison with those from third parties, net 60 days after shipment. Charged at an annual interest rate of 1.858%~2% The prices and terms to related parties were not significantly different from transactions with third parties. The credit terms were 90 to 120 days after shipment. The prices and terms to related parties were not significantly different from transactions with third parties. The credit terms were 90 to 120 days after shipment. Charged at an annual interest rate of 2.05%	3 - - - - - 3 1 -

Note 1: The transaction relationships with the counterparties are as follows:

No. 1: Represents transactions from parent Company to subsidiary.

No. 2: Represents transactions from the subsidiary to the parent Company.

No. 3: Represents transactions among subsidiaries.

Note 2: All the transactions had been eliminated when preparing consolidated financial statements.

72 -

TABLE 8

UNIVERSAL CEMENT CORPORATION AND SUBSIDIARIES

INFORMATION ON MAJOR SHAREHOLDERS DECEMBER 31, 2023

Name of the major shareholder	Shares	Shares
	Number of shares held (share)	Shareholding (%)
Sheng Yuan Investment Co., Ltd. Yu-Sheng Investment Co., Ltd. HOU, BO-YI HSBC custodian Pictet investment accounts	67,213,485 66,467,998 52,414,898 40,645,427	9.98% 9.87% 7.78% 6.03%

Note 1: The information on major shareholders in the table is information related to shareholders with aggregate ownership in the Company achieving 5% and above by holding ordinary shares and special shares that completed the non-physical registration and delivery (including treasury shares), calculated by the TDCC on the last business day at the end of the quarter. The share capital stated in the consolidated financial report of the Company may differ from the number of shares that completed the non-physical registration and delivery due to the differences in the basis of preparation and calculation.
Note 2: Regarding the information above, where shareholders entrust their shares with a trust, the information shall be disclosed in a separate personal account of the client in the nature of a trust account opened by the trustee. When shareholders with shareholding over 10% carrying out the insider’s equity report according to laws and regulations related to securities trading, the shareholding shall include its personal shareholding, plus shares entrusted with trust and possessing the right of utilization and decision-making. For information on the insider’s equity report, please refer to MOP
73 -

AI assistant

UCC — Annual Report 2023

51738_rns_2023-11-13_aa01be8e-9fcc-42c9-9fcc-c42bab9b2d98.pdf

Universal Cement Corporation and Subsidiaries

DECLARATION OF CONSOLIDATION OF FINANCIAL STATEMENTS OF AFFILIATES

INDEPENDENT AUDITORS’ REPORT

Opinion

Basis for Opinion

Key Audit Matters

Occurrence of sales of concrete products

Other Matter

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements

Notice to Readers

Universal Cement Corporation and Subsidiaries

CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2023 AND 2022 (In Thousands of New Taiwan Dollars)

Universal Cement Corporation and Subsidiaries

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

Universal Cement Corporation and Subsidiaries

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

Universal Cement Corporation and Subsidiaries CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

Universal Cement Corporation and Subsidiaries

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

Universal Cement Corporation and Subsidiaries CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022 (In Thousands of New Taiwan Dollars)

Universal Cement Corporation and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022 (In Thousands of New Taiwan Dollars)

Universal Cement Corporation and Subsidiaries

1. GENERAL INFORMATION

2. APPROVAL OF FINANCIAL STATEMENTS

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

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

f. Foreign currencies

g. Inventories

m. Financial instruments

1) Financial assets

b) Derecognition of financial liabilities

Revenue from the sale of goods

o. Leases

1) The Group as lessor

2) The Group as lessee

p. Borrowing costs

q. Employee benefits

1) Short-term employee benefits

2) Retirement benefits

r. Taxation

1) Current tax

5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

6. CASH AND CASH EQUIVALENTS

7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

9. FINANCIAL ASSETS AT AMORTIZED COST

10. CREDIT RISK MANAGEMENT FOR INVESTMENTS IN DEBT INSTRUMENTS

11. NOTES RECEIVABLE, ACCOUNTS RECEIVABLE (INCLUDING RELATED PARTIES)

a. Notes receivable

b. Accounts receivable (Including related parties)

December 31, 2023

December 31, 2022

For the year of 2023

12. INVENTORIES

13. SUBSIDIARIES

14. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

15. PROPERTY, PLANT AND EQUIPMENT

16. LEASE ARRANGEMENTS

a. Right-of-use assets

b. Lease liabilities

d. Other lease information

17. INVESTMENT PROPERTIES

18. OTHER INTANGIBLE ASSETS

19. BORROWINGS

a. Short-term borrowings

b. Short-term bills payable

20. NOTES PAYABLE AND ACCOUNTS PAYABLE (INCLUDING RELATED PARTIES)

21. OTHER PAYABLES AND OTHER LIABILITIES

22. RETIREMENT BENEFIT PLANS

a. Defined contribution plans

b. Defined benefit plans

23. EQUITY

b. Capital surplus

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

3) Remeasurement of defined benefit plans

UCC Annual Report 2023