UPC — Annual Report 2023

Nov 9, 2023

UPC Technology Corp. and Subsidiaries

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

DECLARATION OF CONSOLIDATION OF FINANCIAL STATEMENTS OF AFFILIATES

The entities that are required to be included in the combined financial statements of affiliates of UPC Technology Corp. as of and for the year ended December 31, 2023, under the Criteria Governing the Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises are the same as those included in the consolidated financial statements of parent and subsidiary companies prepared in conformity with International Financial Reporting Standard 10, “Consolidated Financial Statements”. In addition, the information required to be disclosed in the combined financial statements of affiliates has all been disclosed in the consolidated financial statements of parent and subsidiary companies. Consequently, UPC Technology Corp. and its subsidiaries did not prepare a separate set of combined financial statements of affiliates.

Very truly yours,

UPC TECHNOLOGY CORP.

By

MIAU, MATTHEW FENG CHIANG Chairman

March 6, 2024

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INDEPENDENT AUDITORS’ REPORT

The Board of Directors and Stockholders UPC Technology Corp.

Opinion

We have audited the accompanying consolidated financial statements of UPC Technology Corp. and its subsidiaries (collectively referred to as 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 notes to the consolidated financial statements, including material accounting policy information.

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 the Republic of China.

Basis for Opinion

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

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the 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.

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

Recognition of Operating Revenue

The Group’s main revenue came from the sales of plasticizers. Considering that the recognition of such revenue had a significant impact on the financial statements, the authenticity of sales revenue from customers with substantial growth and amount was identified as a key audit matter for the current year. In response to the aforementioned key audit matter, we performed audit procedures as follows: We assessed the related internal controls, checked the transaction records and supporting documents to ensure the occurrence of the transactions and confirmed that the recognition of revenue was in compliance with IFRS. For the accounting policies on revenue recognition, please refer to Note 4 (n) of the consolidated financial statements.

Other Matter

We have also audited the parent company only financial statements of UPC Technology Corp. 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 Republic of China 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 Standards on Auditing of the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

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

1. 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.

2. 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.

3. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

4. 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.

5. 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.

6. 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 statements 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.

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The engagement partners on the audits resulting in this independent auditors’ report are Chien-Liang Liu and Wen-Chin Lin.

Deloitte & Touche Taipei, Taiwan Republic of China

March 6, 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 applied in the Republic of China.

For the convenience of readers, the independent 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.

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UPC TECHNOLOGY CORP. AND SUBSIDIARIES

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

ASSETS CURRENT ASSETS Cash and cash equivalents (Note 6) Financial assets at fair value through profit or loss (Note 7) Financial assets at fair value through other comprehensive income (Note 8) Financial assets at amortized cost (Notes 9 and 33) Notes receivable (Notes 10 and 17) Trade receivables (Note 10) Other receivables (Note 10) Other receivables from related parties (Note 32) Current tax assets (Note 26) Inventories (Note 11) Other current assets (Note 16) Total current assets NON-CURRENT ASSETS Financial assets at fair value through other comprehensive income (Note 8) Investments accounted for using the equity method (Note 13) Property, plant and equipment (Note 14) Right-of-use assets (Note 15) Computer software Deferred income tax assets (Note 26) Other non-current assets (Notes 16 and 32) Total non-current assets TOTAL LIABILITIES AND EQUITY CURRENT LIABILITIES Short-term borrowings (Notes 10 and 17) Notes payable (Note 19) Trade payables (Notes 19 and 32) Other payables (Note 20) Current tax liabilities (Note 26) Provisions (Note 21) Lease liabilities (Note 15) Current portion of long-term liabilities (Notes 17 and 18) Other current liabilities (Note 20) Total current liabilities NON-CURRENT LIABILITIES Bonds payable (Note 18) Long-term borrowings (Notes 17 and 34) Provisions (Note 21) Deferred tax liabilities (Note 26) Lease liabilities (Note 15) Long-term deferred revenue (Note 29) Net defined benefit liabilities (Note 22) Guarantee deposits received (Note 32) Total non-current liabilities Total liabilities EQUITY (Note 23) Share capital Ordinary shares Capital collected in advance Total share capital Capital surplus Retained earnings Legal reserve Special reserve Unappropriated earnings Total retained earnings Other equity Treasury shares Total equity TOTAL		2023 Amount % $ 3,209,524 6 6,852 - 1,050,698 2 332,822 1 758,152 1 3,958,242 7 256,735 - 2,633 - 34,991 - 9,015,958 16 2,185,722 4 20,812,329 37 15,467,637 28 23,498 - 16,123,291 29 1,452,268 3 6,319 - 1,403,436 2 367,891 1 34,844,340 63 $ 55,656,669 100 $ 4,201,060 8 130,056 - 1,660,151 3 1,153,446 2 49,908 - 154,023 - 4,894 - 417,307 1 492,831 1 8,263,676 15 2,996,364 5 13,652,805 25 14,196 - 268,645 1 16,172 - 145,680 - 235,821 - 13,779 - 17,343,462 31 25,607,138 46 13,635,771 25 11,726 - 13,647,497 25 1,378,837 2 2,838,651 5 341,773 1 1,660,705 3 4,841,129 9 10,621,009 19 (438,941) (1) 30,049,531 54 $ 55,656,669 100		2022
				Amount % $ 4,244,635 8 42,227 - 913,027 2 33,907 - 650,645 1 2,890,043 6 237,456 - 2,162 - 182,876 - 8,892,941 18 1,791,607 4 19,881,526 39 10,834,137 21 22,979 - 16,135,794 32 1,522,968 3 8,548 - 1,418,713 3 737,757 2 30,680,896 61 $ 50,562,422 100 $ 4,134,727 8 202,516 1 1,597,899 3 1,347,449 3 78,633 - 113,123 - 13,446 - 6,056,151 12 653,274 1 14,197,218 28 2,995,345 6 6,540,457 13 12,349 - 282,658 1 17,443 - 161,077 - 235,890 - 13,783 - 10,259,002 20 24,456,220 48 13,547,626 27 4,288 - 13,551,914 27 1,387,955 3 2,838,651 6 341,773 1 2,202,427 4 5,382,851 11 6,222,423 12 (438,941) (1) 26,106,202 52 $ 50,562,422 100

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

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UPC TECHNOLOGY CORP. AND SUBSIDIARIES

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

OPERATING REVENUE (Note 24) Sales Other operating revenue Total operating revenue OPERATING COSTS (Note 25) Cost of goods sold (Notes 11 and 32) Other operating cost Total operating costs GROSS PROFIT OPERATING EXPENSES (Notes 25 and 32) Selling and marketing expenses General and administrative expenses Expected credit gain Total operating expenses LOSS FROM OPERATIONS NON-OPERATING INCOME AND EXPENSES Share of profit or loss of associates accounted for using the equity method (Note 13) Interest income (Note 25) Other income (Notes 25 and 32) Other gains and losses (Note 25) Finance costs (Note 25) Total non-operating income and expenses LOSS BEFORE INCOME TAX INCOME TAX (EXPENSE) BENEFIT (Note 26) NET LOSS FOR THE YEAR		2023 Amount % $ 72,928,555 100 267,491 - 73,196,046 100 70,816,050 97 172,589 - 70,988,639 97 2,207,407 3 1,374,302 2 1,034,603 1 (3,987) - 2,404,918 3 (197,511) - 691 - 53,319 - 608,684 1 (219,784) - (401,935) (1) 40,975 - (156,536) - (126,290) - (282,826) -		2022
				Amount % $ 72,526,564 100 293,079 - 72,819,643 100 72,268,449 100 207,184 - 72,475,633 100 344,010 - 1,655,065 2 1,066,502 2 (4,931) - 2,716,636 4 (2,372,626) (4) 133 - 29,402 - 1,154,081 1 (245,437) - (287,775) - 650,404 1 (1,722,222) (3) 485,998 1 (1,236,224) (2) (Continued)

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UPC TECHNOLOGY CORP. AND SUBSIDIARIES

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

OTHER COMPREHENSIVE INCOME (Note 23) 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 (loss) income of associates accounted for using the equity method (Note 13) Income tax relating to items that will not be reclassified subsequently to profit or loss (Note 26) Items that may be reclassified subsequently to profit or loss: Exchange differences on translating the financial statements of foreign operations Income tax relating to items that may be reclassified subsequently to profit or loss (Note 26) Other comprehensive income (loss) for the year, net of income tax TOTAL COMPREHENSIVE INCOME (LOSS) FOR THE YEAR LOSSES PER SHARE (Note 27) Basic		2023 Amount % $ 2,952 - 4,735,286 6 (158) - (590) - 4,737,490 6 (334,257) - 40 - (334,217) - 4,403,273 6 $ 4,120,447 6 $ (0.21)		2022
				Amount % $ 18,729 - (2,085,072) (3) 2,312 - (3,750) - (2,067,781) (3) 763,468 1 (11,840) - 751,628 1 (1,316,153) (2) $ (2,552,377) (4) $ (0.94)
		$

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

(Concluded)

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UPC TECHNOLOGY CORP. AND SUBSIDIARIES

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

BALANCE AT JANUARY 1, 2022 Appropriation of 2021 earnings Legal reserve Cash dividends distributed by the Company Dividends from claims extinguished by prescription Net loss in 2022 Other comprehensive income (loss) in 2022, net of income tax Total comprehensive (loss) income in 2022 Issue of ordinary shares under employee share options Advance share payments for issuing of ordinary shares under employee share options Share-based payment transaction - employees share option plan Disposal of investments in equity instruments designated as at fair value through other comprehensive income BALANCE AT DECEMBER 31, 2022 Appropriation of 2022 earnings Cash dividends distributed by the Company Dividends from claims extinguished by prescription Net loss in 2023 Other comprehensive income (loss) in 2023, net of income tax Total comprehensive (loss) income in 2023 Issue of ordinary shares under employee share options Advance share payments for issuing of ordinary shares under employee share options Share-based payment transaction - employees share option plan Disposal of investments in equity instruments designated as at fair value through other comprehensive income BALANCE AT DECEMBER 31, 2023	**Share Capital **	Total Capital Surplus $ 13,477,765 $ 1,388,431 - - - - - 296 - - - - - - 10,114 (10,114 ) 64,035 - - 9,342 - - 13,551,914 1,387,955 - - - 322 - - - - - - 13,222 (13,222 ) 82,361 - - 3,782 - - $ 13,647,497 $ 1,378,837		Retained Earnings	Total $ 7,837,286 - (1,311,831 ) - (1,236,224 ) 14,979 (1,221,245) - - - 78,641 5,382,851 (263,583 ) - (282,826 ) 2,362 (280,464) - - - 2,325 $ 4,841,129		Other Equity	Total Treasury Shares $ 7,632,196 $ (438,941 ) - - - - - - - - (1,331,132) - (1,331,132) - - - - - - - (78,641) - 6,222,423 (438,941 ) - - - - - - 4,400,911 - 4,400,911 - - - - - - - (2,325) - $ 10,621,009 $ (438,941)	Total Equity $ 29,896,737 - (1,311,831 ) 296 (1,236,224 ) (1,316,153) (2,552,377) - 64,035 9,342 - 26,106,202 (263,583 ) 322 (282,826 ) 4,403,273 4,120,447 - 82,361 3,782 - $ 30,049,531
							Exchange Differences on Translating Unrealized Gain (Loss) on Financial Assets at Fair Value Through Other Foreign Operations Comprehensive Income $ (1,153,241 ) $ 8,785,437 - - - - - - - - 751,628 (2,082,760) 751,628 (2,082,760) - - - - - - - (78,641) (401,613 ) 6,624,036 - - - - - - (334,217) 4,735,128 (334,217) 4,735,128 - - - - - - - (2,325) $ (735,830) $ 11,356,839
	Ordinary Shares Capital Collected in Advance $ 13,471,206 $ 6,559 - - - - - - - - - - - - 76,420 (66,306 ) - 64,035 - - - - 13,547,626 4,288 - - - - - - - - - - 88,145 (74,923 ) - 82,361 - - - - $ 13,635,771 $ 11,726			Legal Reserve Special Reserve Unappropriated Earnings $ 2,581,282 $ 341,773 $ 4,914,231 257,369 - (257,369 ) - - (1,311,831 ) - - - - - (1,236,224 ) - - 14,979 - - (1,221,245) - - - - - - - - - - - 78,641 2,838,651 341,773 2,202,427 - - (263,583 ) - - - - - (282,826 ) - - 2,362 - - (280,464) - - - - - - - - - - - 2,325 $ 2,838,651 $ 341,773 $ 1,660,705

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

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UPC TECHNOLOGY CORP. 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 Loss before income tax Adjustments for: Expected credit gain recognized on trade receivables Depreciation expense Amortization expense Finance costs Interest income Dividend income Compensation costs of employee share-based payment Loss on disposal of property, plant and equipment Net gain on fair value changes of financial assets as at fair value through profit or loss Share of profit of associates accounted Long-term deferred revenue transferred to other income Reversal of write-down of inventories Changes in operating assets and liabilities: Notes receivable Trade receivables Other receivables Other receivables from related parties Inventories Other current assets Notes payable Trade payables Other payables Provisions Other current liabilities Net defined benefit liabilities Cash (used in) generated from operations Interest received Income tax paid Net cash (used in) generated from operating activities CASH FLOWS FROM INVESTING ACTIVITIES Purchase of financial assets at fair value through other comprehensive income Proceeds from disposal of financial assets at fair value through other comprehensive income Proceeds from capital reduction of financial assets at fair value through other comprehensive income Purchase of financial assets at amortized cost	2023 $ (156,536) (3,987) 1,841,316 193,837 401,935 (53,319) (409,726) 3,782 12,692 (425) (691) (12,944) (182,531) (107,468) (1,064,059) (19,263) (471) 60,528 (394,115) (72,460) 62,252 (89,968) 42,747 (160,443) 2,883 (106,434) 53,303 (6,496) (59,627) (60,100) 7,890 16,325 (368,794)	2022 $ (1,722,222) (4,931) 1,777,274 220,595 287,775 (29,402) (569,529) 9,342 5,873 (162) (133) (12,976) (354,798) 228,246 1,178,962 5,757 1,694 81,335 975,693 (306,206) (573,814) (137,674) 47,070 (296,787) 2,139 813,121 26,605 (166,523) 673,203 (27,374) 85,359 13,527 (343) (Continued)

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UPC TECHNOLOGY CORP. AND SUBSIDIARIES

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

Proceeds from financial assets at amortized cost Purchase of financial assets at fair value through profit or loss Proceeds from sale of financial assets at fair value through profit or loss Purchase for property, plant and equipment (including prepayments for equipment) Proceeds from disposal of property, plant and equipment Increase in refundable deposits Decrease in refundable deposits Payments for computer software Increase in other non-current assets Dividends received Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issuance of bonds Repayments of bonds Proceeds from short-term borrowings Repayments of short-term borrowings Proceeds from long-term borrowings Repayments of long-term borrowings Proceeds from guarantee deposits received Refund of guarantee deposits received Repayment of the principal portion of lease liabilities Cash dividends paid Proceeds from exercise of employee share options Interest paid Net cash generated from financing activities EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCE OF CASH AND CASH EQUIVALENTS HELD IN FOREIGN CURRENCIES NET 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 $ 69,300 - 35,800 (1,888,446) 6,429 (10,083) 20,078 (5,341) (75,507) 409,726 (1,842,723) - (6,000,000) 32,387,129 (32,224,162) 38,148,832 (30,666,685) 4 (8) (13,678) (263,583) 82,361 (396,024) 1,054,186 (186,947) (1,035,111) 4,244,635 $ 3,209,524	2022 $ - (17,400) 1,000 (1,968,676) 13,276 (8,766) 714 (6,978) (239,792) 569,566 (1,585,887) 2,994,908 - 47,005,302 (45,948,841) 36,426,350 (38,613,022) 405 (28) (13,209) (1,311,831) 64,035 (248,251) 355,818 457,298 (99,568) 4,344,203 $ 4,244,635

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

(Concluded)

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UPC TECHNOLOGY CORP. AND SUBSIDIARIES

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

1. GENERAL

UPC Technology Corp. (the “Company”), incorporated in August 1976, mainly manufactures and sells petrochemical products such as phthalic anhydride and plasticizer. The Company’s shares have been listed on the Taiwan Stock Exchange since March 1989.

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

2. APPROVAL OF FINANCIAL STATEMENTS

The consolidated financial statements were approved by the board of directors on March 6, 2024.

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

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

The initial application of the IFRSs endorsed and issued into effect by the FSC did not have 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 IFRS Accounting Standards 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.

As of the date the consolidated financial statements were authorized for issue, the Group assessed that the above standards and interpretations endorsed by the FSC did not have any material impact on the Group’s financial position and financial performance.

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

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

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

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

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

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

4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

• a. Statement of compliance

The consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IFRS Accounting Standards 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, are described as follows:

• 1) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities;

• 2) Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for an asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and

• 3) Level 3 inputs are unobservable inputs for an asset or liability.

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• c. 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 or an operating cycle (e.g. land held for construction site) after the reporting period; and

• 3) Cash and cash equivalents.

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 and 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 interests of the Group 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 12, Tables 7 and 8 for detailed information on subsidiaries (including percentages of ownership and main businesses).

e. Foreign currencies

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

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

• 14 -

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 year 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 foreign currencies are not translated.

For the purpose of presenting the consolidated financial statements, the functional currencies of the Company’s foreign operations (including subsidiaries and associates in other countries or those that use currencies which are different from the currency of the Company) are translated into the presentation currency, the New Taiwan dollar, as follows: Assets and liabilities are translated at the exchange rates prevailing at the end of reporting period; 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.

f. Cash equivalents

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

g. Inventories

Inventories consist of merchandise inventories, raw materials, supplies, finished goods, semi-finished goods, work in progress and land held for construction site. 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. Investments in associates

An associate is an entity over which the Group has significant influence and which 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, investments in an associate are 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 the equity of associates.

When the Group subscribes for additional new shares of an 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 and joint ventures accounted for using the equity method. If the Group’s ownership interest is reduced due to its additional subscription of the new shares of the 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.

• 15 -

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 loss, if any. 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 an investment (including goodwill) is tested for impairment as a single asset by comparing its recoverable amount with its carrying amount. Any impairment loss recognized is not allocated to any asset, including goodwill, that forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognized 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 the investment’s 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. If an investment in an associate becomes an investment in a joint venture or an investment in a joint venture becomes an investment in an associate, the Group continues to apply the equity method and does not remeasure the retained interest.

When the Group 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 of interests in the associate that 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 their intended use.

Freehold land is not depreciated.

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

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

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j. Computer software

Computer software is 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 values, 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. The residual value of an intangible asset with a finite useful life shall be assumed to be zero unless the Company expects to dispose of the computer software before the end of its economic life.

Computer software shall be derecognized on disposal or when no future economic benefits are expected from its use or disposal. Gains or losses arising from the derecognition of computer software, which are measured as the difference between the net disposal proceeds and the carrying amount of the asset, are recognized in profit or loss when the asset is derecognized.

• k. Impairment of property, plant and equipment, 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, 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 smallest group of cash-generating units on a reasonable and consistent basis of allocation.

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

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 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.

• l. Financial instruments

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

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issuance of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) 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.

• 17 -

• a) Measurement categories

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

Financial assets at FVTPL are subsequently measured at fair value, and any dividends or interest earned on such financial assets are recognized in other income and interest income, respectively. Remeasurement gains or losses recognized in other gains or losses incorporate any dividend or interest earned on the financial asset. Fair value is determined in the manner described in Note 31.

• 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, trade receivables and other receivables at amortized cost, time deposits with original maturities of more than 3 months and refundable deposits, 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

• 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;

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• 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.

• 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 trade receivables).

The Group always recognizes lifetime expected credit losses (ECLs) for trade receivables. 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 a default occurring as the weights. Lifetime ECLs represent the expected credit losses that will result from all possible default events over the expected life of a financial instrument. In contrast, 12-month ECLs represent the portion of lifetime ECLs that is expected to result from default events on a financial instrument that are possible within 12 months after the reporting date.

For internal credit risk management purposes, the 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 show that the debtor is unlikely to pay its creditors.

• ii. When a financial asset is 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, except for investments in debt instruments that are measured at FVTOCI, for which the loss allowance is recognized in other comprehensive income and the carrying amounts of such financial assets are not reduced.

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• 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 which 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, and 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

Debt and equity instruments issued by the Group are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

Equity instruments issued by the Group 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

Except the following situation, all financial liabilities are measured at amortized cost using the effective interest method:

Financial liabilities at FVTPL

Financial liabilities are classified as at FVTPL when such financial liabilities are held for trading.

Financial liabilities held for trading are stated at fair value, and any gains or losses on such financial liabilities are remeasurement gains or losses recognized in profit or loss.

• b) Derecognition of financial liabilities

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

• m. Provisions

Provisions are measured at the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. Provisions are measured using the cash flows estimated to settle the present obligation.

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n. Revenue recognition

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

• 1) Revenue from the sale of goods

Revenue from the sale of goods comes from sales of petrochemical products. Sales of petrochemical products are recognized as revenue when the goods are delivered to the customer’s specific location because it is the time when the customer has full discretion over the manner of distribution and price to sell the goods, has the primary responsibility for sales to future customers and bears the risks of obsolescence. The Group recognizes revenue and trade receivables concurrently.

• 2) Revenue from the rendering of services

Revenue from the rendering of services comes from the warehousing and logistics services. Revenue from services is recognized when services are provided according to contracts.

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. Initial direct costs incurred in obtaining operating leases are added to the carrying amounts of the underlying assets and recognized as expenses on a straight-line basis over the lease terms. A lease modification that resulted from a negotiation with a lessee is accounted for as a new lease from the effective date of the modification.

Variable lease payments that do not depend on an index or a rate are recognized as income in the periods in which they are incurred.

• 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 applying a recognition exemption where lease payments are recognized as expenses on a straight-line basis over the lease terms.

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

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Lease liabilities are initially measured at the present value of the lease payments, which comprise fixed payments, in-substance fixed payments, and variable lease payments which depend on an index or a rate. 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.

Subsequently, lease liabilities are measured at amortized cost using the effective interest method, with interest expense recognized over the lease terms. When there is a change in a lease term or a change in future lease payments resulting from a change in an index or a rate used to determine those payments, 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. For a lease modification that is not accounted for as a separate lease, the Group accounts for the remeasurement of the lease liability by (a) decreasing the carrying amount of the right-of-use asset of lease modifications that decreased the scope of the lease, and recognizing in profit or loss any gain or loss on the partial or full termination of the lease; (b) making a corresponding adjustment to the right-of-use asset of all other lease modifications. 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 (even if the assets take a long time to be ready for their intended use or sale) 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 that which is stated above, all other borrowing costs are recognized in profit or loss in the period in which they are incurred.

• q. Government grants

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

Government grants related to income are recognized as a reduction of the related costs/in other income on a systematic basis over the periods in which the Group recognizes as expenses the related costs for which the grants are intended to compensate. Specifically, government grants whose primary condition is that the Group should purchase, construct or otherwise acquire non-current assets are recognized as deferred revenue and transferred to profit or loss on a systematic and rational basis over the useful lives of the related assets.

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

r. Employee benefits

• 1) Short-term employee benefits

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

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2) Retirement benefits

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

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

Net defined benefit liabilities (assets) represent the actual deficit (surplus) in the Group’s defined benefit plans.

• 3) Other long-term employee benefits

Other long-term employee benefits are accounted for in the same way as the accounting required for defined benefit plans.

• s. Share-based payment arrangements

The fair value at the grant date of the equity-settled share-based payments is expensed on a straight-line basis over the vesting period, based on the Group’s best estimates of the number of shares or options that are expected to ultimately vest, with a corresponding increase in capital surplus - employee share options. It is recognized as an expense in full at the grant date if vested immediately. The grant date of treasury shares transferred to employees is the date on which the employees are informed.

• t. Taxation

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

• 1) Current tax

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

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

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

• 2) Deferred tax

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

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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 Company is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments 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 deferred tax asset to be recovered. The deferred tax assets which originally not recognized is also reviewed at the end of each reporting period and recognized to the extent that it is probable that sufficient taxable profits will be available to allow all or part of 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 liability 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 tax for the year

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. MATERIAL 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 to be relevant. Actual results may differ from these estimates.

When developing material accounting estimates, the Group considers the possible impact on the cash flow projection, growth rates, discount rates, profitabilities and other relevant material estimates. The estimates and underlying assumptions are reviewed on an ongoing basis.

Based on the assessment of the Group’s management, the accounting policies, estimates, and assumptions adopted by the Group have 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 equivalents (investments with original maturities of 3 months or less) Bank acceptances Time deposits		December 31	December 31
		2023 $ 235 3,137,158 31,647 40,484 $ 3,209,524	2022 $ 237 3,806,491 39,405 398,502 $ 4,244,635

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

Demand deposits and time deposits	December 31
	2023 2022 0.00%-5.28% 0.00%-2.03%

7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

December 31 2023 2022 Financial assets at fair value through profit or loss (FVTPL)-current Financial assets mandatorily classified as at FVTPL Non-derivative financial assets Mutual funds $ 6,852 $ 42,227 The Group did not enter into any derivatives trading during 2023 and 2022.		December 31	December 31
			2022 $ 42,227

8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME - INVESTMENTS IN EQUITY INSTRUMENTS

Current Domestic investments Listed shares Non-current Domestic investments Listed shares and emerging market shares Unlisted shares Foreign investments Unlisted shares		**December 31 **	**December 31 **
		2023 $ 1,050,698 $ 14,712,840 754,795 15,467,635 2 $ 15,467,637	2022 $ 913,027 $ 10,162,630 671,501 10,834,131 6 $ 10,834,137

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

9. FINANCIAL ASSETS AT AMORTIZED COST

Current Time deposits with original maturities more than three months (a) Restricted deposits (b)		December 31	December 31
		2023 $ 299,099 33,723 $ 332,822	2022 $ - 33,907 $ 33,907

• a. The ranges of interest rates for time deposits with original maturities of more than 3 months were approximately 0.54%-1.24% per annum as of December 31, 2023.

• b. The interest rate for restricted deposits was both 0.30% per annum as of December 31, 2023 and 2022.

• c. Refer to Note 33 for information relating to financial assets at amortized cost pledged as security.

10. NOTES RECEIVABLE, TRADE RECEIVABLES AND OTHER RECEIVABLES

Notes receivable At amortized cost Gross carrying amount Less: Allowance for impairment loss Trade receivables At amortized cost Gross carrying amount Less: Allowance for impairment loss Other receivables		December 31	December 31
		2023 $ 758,232 (80) $ 758,152 $ 3,969,907 (11,665) $ 3,958,242 $ 256,735	2022 $ 650,764 (119) $ 650,645 $ 2,907,542 (17,499) $ 2,890,043 $ 237,456

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Refer to Notes 17 and 31(e) for information relating to discounted notes receivable.

The average credit period of sales of goods was 30 days.

Before accepting any new customer, the Group used an internal credit scoring system to assess the potential customer’s credit quality and defined credit limits. The credit limits and rating would be evaluated twice a year.

In order to minimize credit risk, the management of the Group 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.

As of December 31, 2023 and 2022, the balance of receivables from individual customer did not exceed 5% of the total balance of receivables.

The Group measures the loss allowance for trade receivables at an amount equal to lifetime ECLs. The expected credit losses on receivables are estimated by reference to past default records 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. The provision for loss allowance base on the Group’s different customer base.

The Group recognized 100% of the amount as allowance for impairment loss when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery, e.g. when the debtor has been placed under liquidation, or when the trade receivables are over 1 year past due. For trade receivables that recognized 100% of the amount as allowance for impairment loss, the Group continues to engage in enforcement activity to attempt to recover the receivables due. Where recoveries are made, these are recognized in profit or loss.

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

December 31, 2023

Gross carrying amount Loss allowance (Lifetime ECL) Amortized cost December 31, 2022 Gross carrying amount Loss allowance (Lifetime ECL) Amortized cost	Credit Rating A $ 2,095,914 (3,183) $ 2,092,731 Credit Rating A $ 1,249,970 (2,238) $ 1,247,732	Credit Rating B $ 775,134 (2,477) $ 772,657 Credit Rating B $ 758,988 (2,386) $ 756,602	Credit Rating C $ 445,963 (2,544) $ 443,419 Credit Rating C $ 171,047 (1,094) $ 169,953	Credit Rating D $ 214,709 (1,965) $ 212,744 Credit Rating D $ 251,575 (1,905) $ 249,670	Credit Rating E $ 438,187 (1,496) $ 436,691 Credit Rating E $ 475,962 (9,876) $ 466,086	Notes Receivable $ 758,232 (80) $ 758,152 Notes Receivable $ 650,764 (119) $ 650,645	Total $ 4,728,139 (11,745) $ 4,716,394 Total $ 3,558,306 (17,618) $ 3,540,688

• 27 -

The aging of receivables was as follows:

Not past due Up to 30 days 31-60 days 61-90 days Over 91 days		December 31	December 31
		2023 $ 4,696,512 31,528 - 16 83 $ 4,728,139	2022 $ 3,549,008 8,915 83 - 300 $ 3,558,306

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

Balance at January 1 Add: Net remeasurement of loss allowance Less: Net remeasurement of loss allowance Less: Amounts written off Foreign exchange gains and losses Balance at December 31	**For the Year Ended December 31 **	**For the Year Ended December 31 **	**For the Year Ended December 31 **
		2023 $ 17,499 7,807 (11,755) (1,756) (130) $ 11,665	2022 $ 21,708 25,385 (30,147) - 553 $ 17,499

The movements of the loss allowance of notes receivable were as follows:

Balance at January 1 Add: Net remeasurement of loss allowance Less: Net remeasurement of loss allowance Balance at December 31	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2023 $ 119 158 (197) $ 80	2022 $ 288 - (169) $ 119

11. INVENTORIES

Finished goods Semi-finished goods Work in progress Raw materials Supplies Inventory in transit Land held for construction site Less: Allowance for loss		December 31	December 31
		2023 $ 3,450,304 412,371 205,672 2,105,796 1,015,245 1,126,273 859,813 9,175,474 (159,516) $ 9,015,958	2022 $ 3,117,158 389,407 181,677 2,309,136 970,837 1,397,162 870,625 9,236,002 (343,061) $ 8,892,941

• 28 -

The cost of goods sold recognized by the Group is all related to inventories.

The cost of goods sold for the years ended December 31, 2023 and 2022 included a reversal of inventory write-downs of $182,531 thousand and a reversal of the inventory write-downs of $354,798 thousand, respectively. Inventory write-downs were reversed as a result of increased selling prices in certain markets.

As of December 31, 2023 and 2022, land held for construction site are expected to be recovered after more than 12 months.

12. SUBSIDIARIES

a. Subsidiaries included in the consolidated financial statements:

Investor Investee Nature of Activities The Company Constant Holdings Ltd. (CHL) Investment activities The Company Glory Ace Trading The Company Union Venture Capital Corp. (UVC) Investment activities The Company Wei Chen Investment Co. (WCI) Investment activities The Company Taiwan Union International Investment Corporation (TUI) Investment activities The Company UPC Chemicals (Malaysia) Manufacturing and selling of PLASTICIZERS and PA CHL Star Bright Investment activities CHL Goldendust Investment activities CHL Natural Investment activities CHL Magic Props Investment activities CHL Pure Fantasy Investment activities CHL Union Hong Kong Trading CHL Modern Vantage Investment activities CHL Charmon Investment activities CHL Linkhope Investment activities CHL Reachworld Investment activities CHL Daywinn Investment activities CHL Dragonoble Investment activities CHL Pagerise Investment activities CHL Faithouse Investment activities CHL Greaterise Investment activities CHL Granfaith Investment activities CHL Prestige Spring Investment activities UVC Inno Strategy Investment activities Star Bright Logical Path Ltd. Investment activities Goldendust Zhongshan Unicizers Manufacturing and selling of PLASTICIZERS and PA Natural and Daywinn Taizhou Union Plastics Manufacturing and selling of PVC Modern Vantage Taizhou Union Logistics Warehousing and storage services Charmon and Zhongshan Unicizers Taizhou Union Chemical Manufacturing and selling of PLASTICIZERS and PA Linkhope Jiangsu Union Logistics Rendering logistics services Reachworld Guangdong Union Logistics Rendering logistics services Dragonoble and Zhongshan Unicizers Panjin Union Chemical Manufacturing and selling of PLASTICIZERS and PA Pagerise Panjin Union Logistics Warehousing and storage services Greaterise Panjin Union Materials Manufacturing and selling of MA and related derivatives Zhongshan Unicizers Logical Path Ltd. Pure Fantasy and Goldendust Zhuhai Unicizers Manufacturing and selling of PLASTICIZERS, PA and MA Zhongshan Unicizers, Logical Path Ltd. Goldendust and Magic Props Zhenjiang Union Chemical Manufacturing and selling of PLASTICIZERS and PA Zhenjiang Union Chemical ZhenJiang Union Torch Estate Real estate management Granfaith and Zhongshan Unicizers Nanchong Unicizers Manufacturing and selling of PLASTICIZERS and PA Prestige Spring UPC Chemicals (Malaysia) Manufacturing and selling of PLASTICIZERS and PA Granfaith Sichung Logistics Rendering logistics services Faithouse Sichung Logistics Rendering logistics services UPC Chemicals (Malaysia) UPCM Trading (Thailand) Company Limited Trading UPC Chemicals (Malaysia) UPCM Trading (Vietnam) Company Limited Trading Taizhou Union Plastics Panjin Union Plastics Manufacturing and selling of VCM

Proportion of Ownership (%) December 31 2023 2022 Description Remark 100.00 100.00 1) 100.00 100.00 2) 100.00 100.00 2) 100.00 100.00 2) 100.00 100.00 2) 100.00 100.00 2 and 4) 100.00 100.00 2) 100.00 100.00 1) 100.00 100.00 2) 100.00 100.00 2) 100.00 100.00 2) 100.00 100.00 2) 100.00 100.00 2) 100.00 100.00 2) 100.00 100.00 2) 100.00 100.00 2) 100.00 100.00 2) 100.00 100.00 2) 100.00 100.00 2) - 100.00 2 and 5) 100.00 100.00 2) 100.00 100.00 2) - - 4) - - 3) 100.00 100.00 2) 100.00 100.00 1) 100.00 100.00 Natural holds 74.41% and Daywinn holds 25.59%. 2) 100.00 100.00 2) 100.00 100.00 Charmon holds 49.90% and Zhongshan Unicizers holds 50.10%. 2) 100.00 100.00 2) 100.00 100.00 2) 100.00 100.00 Dragonoble holds 48.26% and Zhongshan Unicizers holds 51.74%. 2) 100.00 100.00 2) 100.00 100.00 2) 100.00 100.00 Zhongshan Unicizers holds 50.28%, Logical Path Ltd. 6.48%, Pure Fantasy holds 17.75% and Goldendust holds 25.49%. 1) 100.00 100.00 Zhongshan Unicizers holds 50.49%, Logical Path Ltd. holds 4.01%, Goldendust holds 3.71% and Magic Props holds 41.79%. 1) 100.00 100.00 2) 100.00 100.00 Granfaith holds 53.00% and Zhongshan Unicizers holds 47.00%. 2 and 6) - - 2 and 4) - - 2 and 5) - 100.00 2 and 5) 100.00 100.00 2) 100.00 100.00 2) 100.00 100.00 2)

• 29 -

Remark 1: Material subsidiary.

Remark 2: Immaterial subsidiary.

• Remark 3: Inno Strategy has ceased its operations and finished the liquidation procedures in December 2022.

• Remark 4: Due to operational strategy and management considerations, the board of directors of the Group approved an organizational restructuring in November 2022, and its parent company acquired 100% of the equity interest of UPC Chemicals (Malaysia) from Prestige Spring, a subsidiary of CHL, for $1,838,838 thousand, and then CHL, a subsidiary of the parent company, absorbed and merged 100% equity of Prestige Spring. After the merger, CHL would be the surviving company while Prestige Spring would be dissolved in the merger, and CHL conducted capital reduction and returned $1,838,838 thousand to the parent company.

• Remark 5: In order to reduce the costs of management and enhance the competitiveness of the Group, the board of directors of the Group approved an organizational restructuring in March 2023. Granfaith, a subsidiary of CHL, merged 100% of the equity of Faithouse, a subsidiary of CHL. After the merger, Granfaith would be the surviving company while Faithouse would be dissolved. In this merger, Granfaith also acquired 100% equity of Sichung Logistics, a subsidiary of Faithouse.

• Remark 6: In order to reduce the costs of management and enhance the competitiveness of the Group, the board of directors of the Group approved an organizational restructuring in March 2023. Nanchong Unicizers, a subsidiary of Granfaith, merged 100% of the equity of Sichung Logistics, a subsidiary of Granfaith. After the merger, Nanchong Unicizers would be the surviving company while Sichung Logistics would be dissolved. In this merger, Nanchong Unicizers obtained the share capital of Sichung Logistics, the original investment of Granfaith, which increased Granfaith’s shareholding ratio in Nanchong Unicizers to 53% and Zhongshan Unicizers' shareholding ratio reduced to 47%.

• 30 -

As of December 31, 2023, the investment relationship and shareholding ratio of the Company and the individuals controlled by the Company are as follows:

==> picture [693 x 393] intentionally omitted <==

----- Start of picture text -----

The
Company
100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
UPC
Glory Ace WCI TUI CHL UVC Chemicals
(Malaysia)
100.00% 100.00%
UPCM UPCM
Trading Trading
(Thailand) (Vietnam)
100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Union Hong Kong Star Bright Magic Props Goldendust Pure Fantasy Natural Charmon Modern Vantage Linkhope Reachworld Daywinn Dragonoble Pagerise Faithouse Greaterise Granfaith
100.00%
Logical 41.79%
Path Ltd
4.01% 3.71% 100.00% 25.49% 17.75% 74.41% 49.90% 100.00% 100.00% 100.00% 25.59% 48.26% 100.00% 100.00% 100.00% 53.00%
Zhenjiang Union 50.49% Zhongshan Unicizers 50.28% Unicizers Zhuhai Taizhou Union Taizhou Union Taizhou Union Jiangsu Union Guangdong Union Panjin Union Panjin Union Logistics Sichung Panjin Union Nanchong Unicizers
Chemical Plastics Chemical Logistics Logistics Logistics Chemical Logistics Materials
6.48% 50.10% 51.74% 47.00%
100.00% 100.00%
Zhenjiang Union Panjin Union
Torch Estate Plastics
----- End of picture text -----

• 31 -

• b. Subsidiaries excluded from the consolidated financial statements: None.

13. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

Associates that Are Not Individually Material Unlisted company Harbinger Ruyi		December	31
		2023 $ 23,498	2022 $ 22,979

As the end of the reporting period, the proportion of ownership and voting rights on associates held by the Group were as follows:

Name of Associate Harbinger Ruyi	December 31
	2023 2022 28.57% 28.57%

Aggregate information of associates that are not individually material:

The Group’s share of: Profit for the year Other comprehensive (loss) income Total comprehensive income for the year	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2023 $ 691 (158) $ 533	2022 $ 133 2,312 $ 2,445

14. PROPERTY, PLANT AND EQUIPMENT

Cost Balance at January 1, 2022 Additions Disposals Reclassification Effects of foreign currency exchange differences Balance at December 31, 2022 Accumulated depreciation Balance at January 1, 2022 Disposals Depreciation expense Effects of foreign currency exchange differences Balance at December 31, 2022 Carrying amount at December 31, 2022	Land $ 1,126,898 - - - - $ 1,126,898 $ 1,126,898	Buildings $ 8,228,035 81,107 (3,316 ) 231,399 154,630 $ 8,691,855 $ 2,693,314 (5,538 ) 359,377 41,409 $ 3,088,562 $ 5,603,293	Machinery and Equipment $ 11,974,131 92,801 (64,386 ) 766,026 210,101 $ 12,978,673 $ 8,220,073 (55,534 ) 698,489 132,561 $ 8,995,589 $ 3,983,084	Warehousing Equipment $ 4,256,473 94,315 (5,939 ) 275,569 83,833 $ 4,704,251 $ 2,551,081 (5,730 ) 303,044 42,675 $ 2,891,070 $ 1,813,181	Utilities Equipment $ 3,913,108 65,762 (125,773 ) 233,004 57,383 $ 4,143,484 $ 2,791,525 (124,617 ) 205,260 37,923 $ 2,910,091 $ 1,233,393	Transportation Equipment $ 309,236 15,781 (27,527 ) 3,386 7,141 $ 308,017 $ 175,550 (23,836 ) 39,220 4,561 $ 195,495 $ 112,522	Other Equipment E $ 1,406,717 62,602 (22,477 ) 68,993 27,839 $ 1,543,674 $ 1,134,772 (23,415 ) 120,653 19,319 $ 1,251,329 $ 292,345	Construction in Progress and quipment to Be Inspected Total $ 2,063,643 $ 33,278,241 1,460,763 1,873,131 (4,830 ) (254,248 ) (1,581,675 ) (3,298 ) 33,177 574,104 $ 1,971,078 $ 35,467,930 $ 17,566,315 (238,670 ) 1,726,043 278,448 $ 19,332,136 $ 1,971,078 $ 16,135,794 (Continued)

• 32 -

Cost Balance at January 1, 2023 Additions Disposals Reclassification Effects of foreign currency exchange differences Balance at December 31, 2023 Accumulated depreciation Balance at January 1, 2023 Disposals Reclassification Depreciation expense Effects of foreign currency exchange differences Balance at December 31, 2023 Carrying amount at December 31, 2023	Land $ 1,126,898 - - - - $ 1,126,898 $ 1,126,898	Buildings $ 8,691,855 85,498 (386 ) 66,483 (127,272) $ 8,716,178 $ 3,088,562 (304 ) (819 ) 372,073 (48,803) $ 3,410,709 $ 5,305,469	Machinery and Equipment $ 12,978,673 259,345 (45,548 ) 94,195 (196,338) $ 13,090,327 $ 8,995,589 (39,348 ) - 750,450 (143,907) $ 9,562,784 $ 3,527,543	Warehousing Equipment $ 4,704,251 112,639 (16,357 ) 39,887 (64,710) $ 4,775,710 $ 2,891,070 (13,420 ) (1,923 ) 314,093 (43,376) $ 3,146,444 $ 1,629,266	Utilities Equipment $ 4,143,484 172,933 (7,964 ) 44,949 (63,926) $ 4,289,476 $ 2,910,091 (7,383 ) (2,866 ) 231,619 (45,928) $ 3,085,533 $ 1,203,943	Transportation Equipment $ 308,017 15,446 (25,207 ) 4,119 (4,300) $ 298,075 $ 195,495 (20,981 ) - 30,515 (579) $ 204,450 $ 93,625	Other Equipment E $ 1,543,674 44,613 (6,570 ) 819 (20,824) $ 1,561,712 $ 1,251,329 (6,223 ) - 91,188 (18,452) $ 1,317,842 $ 243,870	Construction in Progress and quipment to Be Inspected Total $ 1,971,078 $ 35,467,930 1,330,316 2,020,790 (4,748 ) (106,780 ) (247,117 ) 3,335 (56,852) (534,222) $ 2,992,677 $ 36,851,053 $ 19,332,136 (87,659 ) (5,608 ) 1,789,938 (301,045) $ 20,727,762 $ 2,992,677 $ 16,123,291 (Concluded)

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

Building Main buildings 50 years Road construction 15-40 years Others 3-50 years Machinery and equipment 5-20 years Warehousing equipment 5-15 years Utilities equipment 5-15 years Transportation equipment 5-8 years Other equipment 3-20 years

15. LEASE ARRANGEMENTS

• a. Right-of-use assets

Carrying amount Land Buildings Other equipment Depreciation charge for right-of-use assets Land Buildings Other equipment		December 31	December 31	December 31
	2023 2022 $ 1,431,834 $ 1,494,647 17,475 28,135 2,959 186 $ 1,452,268 $ 1,522,968 For the Year Ended December 31
			2023 $ 39,613 11,336 429 $ 51,378	2022 $ 39,917 10,278 1,036 $ 51,231

• 33 -

b. Lease liabilities

Carrying amount Current Non-current Range of discount rates for lease liabilities was as follows:		December	31
		2023 $ 4,894 $ 16,172	2022 $ 13,446 $ 17,443

Land Buildings Other equipment	December 31
	2023 2022 3.66% 3.66% 1.80%-3.66% 1.80%-3.66% 4.35% 4.35%

• c. Material leasing activities and terms

The Group leases land and buildings for the use of plants and offices with lease terms of 2 to 50 years. The Group does not have bargain purchase options to acquire the leasehold land and buildings at the end of the lease terms. In addition, the Group is prohibited from subleasing or transferring all or any portion of the underlying assets without the lessor’s consent.

d. Other lease information

Expenses relating to short-term leases Expenses relating to low-value asset leases Expenses relating to variable lease payments not included in the measurement of lease liabilities Total cash outflow for leases	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2023 $ 34,061 $ 769 $ 1,335 $ 50,546	2022 $ 27,638 $ 659 $ 547 $ 42,941

The Group’s leases of certain office equipment qualify as short-term leases and certain warehousing equipment qualify as 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.

16. OTHER ASSETS

Current Other assets Prepayments to suppliers Input VAT and excess business tax paid Prepaid expense		December 31	December 31
		2023 $ 1,840,568 64,904 280,250 $ 2,185,722	2022 $ 1,295,341 249,795 246,471 $ 1,791,607 (Continued)

• 34 -

Non-current Other assets Refundable deposits Long-term prepaid expenses Prepayment for equipment		December 31	December 31
		2023 $ 42,020 240,514 85,357 $ 367,891	2022 $ 51,957 354,663 331,137 $ 737,757 (Concluded)

17. BORROWINGS

• a. Short-term borrowings

Discounted bill borrowings Banker’s acceptance bill discounted loans (1) Unsecured borrowings Bank credit loans (2) Fixed rate loans Floating rate loans		December 31	December 31
		2023 $ 1,068,720 3,132,340 $ 4,201,060 $ 2,409,683 1,791,377 $ 4,201,060	2022 $ 817,496 3,317,231 $ 4,134,727 $ 2,877,210 1,257,517 $ 4,134,727

• 1) The range of interest rates on banker’s acceptance bill discounted loans was 0.20%-1.51% and 0.74%-2.31% per annum as of December 31, 2023 and 2022, respectively.

• 2) The range of interest rates on bank credit loans was 2.36%-3.50% and 1.50%-3.50% per annum as of December 31, 2023 and 2022, respectively.

• 3) Refer to Note 31 for information relating to amount used and unused of unsecured bank facilities.

• b. Long-term borrowings

Unsecured borrowings Revolving credit loans Less: Current portion		December 31	December 31
		2023 $ 14,070,112 (417,307) $ 13,652,805	2022 $ 6,601,042 (60,585) $ 6,540,457

• 35 -

The carrying amounts of long-term borrowings of the Group were as follows:

Effective Maturity Day Interest Rate Fixed interest rate loan Unsecured loans (NTD) Used in revolving credit before November 2025 1.80% Used in revolving credit before August 2024 2.00% Used in revolving credit before May 2025 1.82% Used in revolving credit before October 2024 1.65% Used in revolving credit before October 2025 1.83% Used in revolving credit before October 2025 1.73%/1.91% Used in revolving credit before June 2024 1.88% Used in revolving credit before June 2024 1.98% Used in revolving credit before May 2026 1.85% Used in revolving credit before December 2025 1.79% Used in revolving credit before May 2024 1.77% Used in revolving credit before May 2024 1.77% Used in revolving credit before May 2025 1.70% Used in revolving credit before November 2028 1.96% Used in revolving credit before December 2025 1.87% Used in revolving credit before November 2025 1.80% Used in revolving credit before April 2025 2.07% Used in revolving credit before April 2025 1.95% Used in revolving credit before September 2024 2.00% Used in revolving credit before May 2026 1.89% Unsecured loans (RMB) Used in revolving credit before June 2023 3.40% Used in revolving credit before March 2025 3.15% Used in revolving credit before August 2026 3.25% Total of fixed interest rate loan Floating interest rate loan Unsecured loans (NTD) Used in revolving credit before December 2024 1.97% Used in revolving credit before April 2024 1.80% Repaid once before November 2025 1.81%/1.52% Used in revolving credit before May 2024 1.45% Used in revolving credit before May 2025 1.75% Used in revolving credit before November 2023 1.98%		December 31	December 31
		2023 $ 1,470,000 - 1,000,000 - 750,000 300,000 - - 1,000,000 500,000 - - 650,000 2,800,000 250,000 600,000 - - - 1,000,000 - 385,296 172,878 10,878,174 - - 400,000 - 1,500,000 -	2022 $ - 310,000 - 300,000 - 300,000 100,000 40,000 - - 150,000 350,000 - - - - 500,000 50,000 730,000 - 60,585 - - 2,890,585 500,000 700,000 400,000 1,500,000 - 500,000 (Continued)

• 36 -

Effective Maturity Day Interest Rate Unsecured loans (RMB) Used in revolving credit before March 2025 3.15% Used in revolving credit before July 2025 3.20% Used in revolving credit before June 2024 3.25% Used in revolving credit before July 2025 3.20% Used in revolving credit before March 2025 3.15% Used in revolving credit before September 2024 3.35% Total of floating interest rate loan Total of long-term borrowing Less: Current portion		December 31	December 31
		2023 $ 218,588 370,744 417,307 26,011 259,288 - 3,191,938 14,070,112 (417,307) $ 13,652,805	2022 $ - - - - - 110,457 3,710,457 6,601,042 (60,585) $ 6,540,457 (Concluded)

18. BONDS PAYABLE

Secured domestic bonds Less: Discount of bonds Less: Current portion		**December 31 **	**December 31 **
		2023 $ 3,000,000 (3,636) 2,996,364 - $ 2,996,364	2022 $ 9,000,000 (9,089) 8,990,911 (5,995,566) $ 2,995,345

The major terms of the secured domestic bonds are as follows:

Issuance	Issuance Period	Total Amount	Coupon Rate	Repayment and Interest Payment
2018-1	December 2018 to	$ 6,000,000	0.95%	Bullet repayment; interest payable
	December 2023			annually
2022-1	July 2022 to July 2027	3,000,000	1.80%	Bullet repayment; interest payable
				annually

19. NOTES PAYABLE AND TRADE PAYABLES

Notes payable and trade payables of the Group were generated from operating activities. The average credit period on purchases was 30 days. The Group has financial risk management policies in place to ensure that all payables are paid within the pre-agreed credit terms.

• 37 -

20. OTHER LIABILITIES

Current Other payables Payables for purchases of equipment Payables for salaries or bonuses Interest payables Payables for imported raw materials Payables for utilities Payables for freight Others Other liabilities Contract liabilities Others		December 31	December 31
		2023 $ 256,436 164,472 40,343 83,136 72,334 89,439 447,286 $ 1,153,446 $ 463,884 28,947 $ 492,831	2022 $ 360,929 183,473 39,885 $ 136,427 58,995 138,998 428,742 $ 1,347,449 $ 606,883 46,391 $ 653,274

21. PROVISIONS

Current Safety provision (a) Non-current Employee benefits (b)		December 31	December 31
		2023 $ 154,023 $ 14,196	2022 $ 113,123 $ 12,349

• a. The safety provision is based on the regulations of mainland China. When a company produces, stores, or transports hazardous chemicals, a specific ratio of safety provision should be recognized. Safety provision can be written off on actual expenses. As the safety provision balance reaches the specified rate, the Group may apply to competent authority for lower provision ratio.

• b. The provision for employee benefits is based on the Group’s employee pension. The present value of the long-term employee benefit were carried out by qualified actuaries.

• 38 -

22. RETIREMENT BENEFIT PLANS

a. Defined contribution plans

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

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

Accordingly, the Group recognized pension expenses of $113,233 thousand and $99,388 thousand for the years ended December 31, 2023 and 2022, respectively.

b. Defined benefit plans

The defined benefit plans adopted by the Company in accordance with the Labor Standards Act is operated by the government of the ROC. Pension benefits are calculated on the basis of the length of service and average monthly salaries of the 6 months before retirement. The Company contributes amounts equal to 2% of total monthly salaries and wages to a pension fund administered by the pension fund monitoring committee. Pension contributions are deposited in the Bank of Taiwan in the committee’s name. Before the end of each year, the 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.

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 liabilities		December 31	December 31
		2023 $ 524,583 (288,762) $ 235,821	2022 $ 535,373 (299,483) $ 235,890

• 39 -

Movements in net defined benefit liabilities were as follows:

	Present Value
	of the Defined		Net Defined
	Benefit	Fair Value of	Benefit
	Obligation	the Plan Assets	Liabilities
Balance at January 1, 2022	$ 565,598	$ (313,118)	$ 252,480
Current service cost	3,612	-	3,612
Net interest expense (income)	2,828	(1,573)	1,255
Recognized in profit or loss	6,440	(1,573)	4,867
Remeasurement
Return on plan assets (excluding amounts
included in net interest)	-	(26,326)	(26,326)
Actuarial gain - changes in financial
assumptions	(4,539)	-	(4,539)
Actuarial loss - experience adjustment	12,136	-	12,136
Recognized in other comprehensive income	7,597	(26,326)	(18,729)
Contributions from the employer	-	(2,728)	(2,728)
Benefits paid	(44,263)	44,263	-
Balance at December 31, 2022	$ 535,372	$ (299,482)	$ 235,890
Balance at January 1, 2023	$ 535,372	$ (299,482)	$ 235,890
Current service cost	2,921	-	2,921
Net interest expense (income)	6,008	(3,369)	2,639
Recognized in profit or loss	8,929	(3,369)	5,560
Remeasurement
Return on plan assets (excluding amounts
included in net interest)	-	(3,091)	(3,091)
Actuarial gain - changes in financial
assumptions	(3,662)	-	(3,662)
Actuarial loss - experience adjustment	3,801	-	3,801
Recognized in other comprehensive income	139	(3,091)	(2,952)
Contributions from the employer	-	(2,677)	(2,677)
Benefits paid	(19,857)	19,857	-
Balance at December 31, 2023	$ 524,583	$ (288,762)	$ 235,821

Through the defined benefit plans under the Labor Standards Act, 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 deposit with local banks.

• 2) Interest risk: A decrease in the government or 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 plans’ debt investments.

• 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.

• 40 -

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 1.250% 1.125% 3.000% 3.000%

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

Discount rate 0.25% increase 0.25% decrease Expected rate of salary increase/decrease 0.25% increase 0.25% decrease		December	31
		2023 $ (7,193) $ 7,369 $ 7,128 $ (6,995)	2022 $ (7,863) $ 8,066 $ 7,789 $ (7,634)

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

Expected contributions to the plans for the next year Average duration of the defined benefit obligation		December	31
		2023 $ 2,659 5.9 years	2022 $ 2,697 6.3 years

23. EQUITY

• a. Ordinary shares

Number of shares authorized (in thousands) Shares authorized Number of shares issued and fully paid (in thousands) Shares issued Capital collected in advance		December 31	December 31
		2023 2,000,000 $ 20,000,000 1,363,577 $ 13,635,771 $ 11,726	2022 2,000,000 $ 20,000,000 1,354,763 $ 13,547,626 $ 4,288

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

A total of 100,000 thousand shares of the Company’s authorized shares was reserved for the issuance of employee share options; the remaining unissued shares will be issued by the board of directors in future installments as needed, and some of them will be designated as preference shares.

• 41 -

The change in the Company’s share capital was mainly due to the exercise of employee share options. The capital collected in advance was the advance share payment received by employees for executing share options, The Company completed the change registration on January 22, 2024.

b. Capital surplus

May be used to offset a deficit, distributed as cash dividends, or transferred to share capital (Note) Issuance of ordinary shares Donations Employee share options exercised and expired Treasury share transactions May only be used to offset a deficit Unclaimed dividends May not be used for any purpose Employee share options		December 31	December 31
		2023 $ 770,594 19,835 347,986 218,846 3,266 18,310 $ 1,378,837	2022 $ 783,816 19,835 327,525 218,846 2,944 34,989 $ 1,387,955

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

• c. Retained earnings and dividends policy

Under the dividends policy, where the Company made a profit in a fiscal year, the profit shall be first utilized for paying taxes, offsetting losses of previous years, setting aside as legal reserve 10% of the remaining profit, setting aside or reversing a special reserve in accordance with the laws and regulations, and then any remaining profit together with any undistributed retained earnings shall be used by the Company’s board of directors as the basis for proposing a distribution plan. The issuance of share dividends shall be distributed after such proposal of profit distribution is resolved by the shareholders in the shareholders’ meeting. The board of directors is authorized to adopt a special resolution to distribute dividends in cash, and such distribution shall be reported and submitted in the shareholders’ meeting.

For the policies on the distribution of employees’ compensation and remuneration of directors, refer to employees’ compensation and remuneration of directors in Note 25(g).

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 deficit. If the Company has no deficit and the legal reserve has exceeded 25% of the Company’s paid-in capital, the excess may be transferred to capital or distributed in cash.

• 42 -

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

Legal reserve Cash dividends Cash dividends per share (NT$)	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2022 $ - $ 263,583 $ 0.20	2021 $ 257,369 $ 1,311,831 $ 1.00

The above appropriations for cash dividends were resolved by the Company’s board of directors on March 6, 2023 and March 8, 2022, respectively; other appropriations of earnings for 2021 were approved by the shareholders in their meeting on May 26, 2022.

The appropriation of earnings for 2023 was resolved by the Company’s board of directors on March 6, 2024. The appropriation and dividends per share were as follows:

	For the Year	For the Year
		Ended
	December 31,
		2023
Legal reserve	$	-
Cash dividends	$	265,511
Cash dividends per share (NT$)	$	0.20

The above appropriation for cash dividends was resolved by the Company’s board of directors; the other proposed appropriations will be resolved by the shareholders in their meeting to be held on May 24, 2024.

d. Special reserve

On the first-time adoption of IFRS Accounting standards the Group appropriated to special reserve the amount that was the same as the unrealized revaluation increment transferred to retained earnings, which was $341,773 thousand.

The special reserve may be reversed on the disposal or reclassification of the related assets.

• e. Other equity items

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

Balance at January 1 Recognized for the year Exchange differences on translating the financial statements of foreign operations Related income tax Balance at December 31	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2023 $ (401,613) (334,257) 40 $ (735,830)	2022 $ (1,153,241) 763,468 (11,840) $ (401,613)

• 43 -

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

Balance at January 1 Recognized for the year Unrealized gain (loss) - equity instruments Share from associates accounted for using the equity method Cumulative unrealized gain of equity instruments transferred to retained earnings due to disposal Balance at December 31	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2023 $ 6,624,036 4,735,286 (158) (2,325) $ 11,356,839	2022 $ 8,785,437 (2,085,072) 2,312 (78,641) $ 6,624,036

• f. Treasury shares

Number of shares at January 1, 2022 Increase during the year Number of shares at December 31, 2022 Number of shares at January 1, 2023 Increase during the year Number of shares at December 31, 2023	Purpose of **Buy-back **
	Shares Transferred to Employees (In Thousands of Shares) 38,665 - 38,665 38,665 - 38,665

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

24. REVENUE

Revenue from sales Revenue from logistics and warehousing services	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2023 $ 72,928,555 267,491 $ 73,196,046	2022 $ 72,526,564 293,079 $ 72,819,643

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25. NET LOSS FOR THE YEAR

Information about net loss is as follows:

a. Interest income

Bank deposits b. Other income Operating lease rental income Dividends Government grant income (Note 29) Indemnity income (Note 35) Others c. Other gains and losses Fair value changes of financial assets and financial liabilities Financial assets mandatorily classified as at FVTPL Net foreign exchange losses Loss on disposal of property, plant and equipment Bank charges (including bonds) Others d. Finance costs Interest on bank loans (including bonds) Interest on lease liabilities	**For the Year Ended December 31 **	**For the Year Ended December 31 **	**For the Year Ended December 31 **
	2023 2022 $ 53,319 $ 29,402 **For the Year Ended December 31 **
	2023 2022 $ 81,159 $ 84,583 409,726 569,529 65,074 150,529 17 266,785 52,708 82,655 $ 608,684 $ 1,154,081 For the Year Ended December 31
	2023 $ 425 (78,361) (12,692) (56,766) (72,390) $ (219,784) For the Year Ended		2022 $ 162 (148,127) (5,873) (52,016) (39,583) $ (245,437) December 31
		2023 $ 401,232 703 $ 401,935	2022 $ 286,887 888 $ 287,775

• 45 -

e. Depreciation and amortization

Property, plant and equipment Right-of-use assets Computer software Long-term prepaid expenses An analysis of depreciation by function Operating costs Operating expenses Other losses An analysis of amortization by function Operating costs Operating expenses	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2023 $ 1,789,938 51,378 7,510 186,327 $ 2,035,153 $ 1,582,847 244,824 13,645 $ 1,841,316 $ 186,199 7,638 $ 193,837	2022 $ 1,726,043 51,231 9,275 211,320 $ 1,997,869 $ 1,494,338 261,253 21,683 $ 1,777,274 $ 210,350 10,245 $ 220,595

f. Employee benefits expense

Short-term benefits Post-employment benefits (Note 22) Defined contribution plans Defined benefit plans Total post-employment benefits Share-based payments Equity-settled Other employee benefits Total employee benefits expense An analysis of employee benefits expense by function Operating costs Operating expenses	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2023 $ 1,256,771 113,233 5,560 118,793 3,782 103,187 $ 1,482,533 $ 931,576 550,957 $ 1,482,533	2022 $ 1,243,443 99,388 4,867 104,255 9,342 106,316 $ 1,463,356 $ 986,737 476,619 $ 1,463,356

• g. Employees’ compensation and remuneration of directors

According to the Company’s Articles of Incorporation, the Company accrued employees’ compensation and remuneration of directors and supervisors at rates of no less than 1% and no higher than 1%, respectively, of net profit less accumulated deficit.

Due to the net loss before income tax for the years ended December 31, 2023 and 2022, the Company did not accrue employees’ compensation and remuneration of directors.

• 46 -

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

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

• h. Gains or losses on foreign currency exchange

Foreign exchange gains Foreign exchange losses	For the Year Ended	For the Year Ended	December 31
		2023 $ 450,412 (528,773) $ (78,361)	2022 $ 455,424 (603,551) $ (148,127)

26. INCOME TAXES

• a. Income tax recognized in profit or loss

Major components of income tax (benefit) expense are as follows:

Current tax In respect of the current year Adjustments for prior year Deferred tax In respect of the current year Income tax expense (benefit) recognized in profit or loss	**For the Year Ended **	**For the Year Ended **	**December 31 **
		2023 $ 106,780 41,705 148,485 (22,195) $ 126,290	2022 $ 99,107 22,340 121,447 (607,445) $ (485,998)

A reconciliation of accounting profit and income tax expense (benefit) is as follows:

Loss before tax from continuing operations Income tax benefit calculated at the statutory rate (25%) Permanent differences Tax-exempt income Effect of different tax rates of group entities operating in other jurisdictions Adjustments for prior years’ tax Income tax expense (benefit) recognized in profit or loss	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2023 $ (156,536) $ (39,134) 241,856 (81,945) (36,192) 41,705 $ 126,290	2022 $ (1,722,222) $ (430,556) 108,174 (144,873) (41,083) 22,340 $ (485,998)

The corporate tax rate applicable to subsidiaries in China is 25%. Tax rates applicable to the Group’s entities operating in other jurisdictions are based on the tax laws in those jurisdictions.

• 47 -

b. Income tax recognized in other comprehensive income

Deferred income tax expenses In respect of the current year Translation of foreign operations Remeasurement of defined benefit plans Total income tax expense recognized in other comprehensive income	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2023 $ (40) 590 $ 550	2022 $ 11,840 3,750 $ 15,590

c. Current tax assets and liabilities

Current tax assets Tax refund receivable Current tax liabilities Income tax payable		December 31	December 31
		2023 $ 34,991 $ 49,908	2022 $ 182,876 $ 78,633

d. Deferred tax assets and liabilities

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

For the year ended December 31, 2023

Deferred tax assets Temporary differences Allowance for write - down of inventories Exchange differences on translating the financial statements of foreign operations Defined benefit obligations Allowance for impairment loss Right-of-use assets Others Loss carryforwards	Opening Balance $ 75,118 22,820 50,920 7,083 - 27,792 183,733 1,234,980 $ 1,418,713	Recognized in Profit or Loss $ (35,264) - (3,180) (4,603) 78,702 8,300 43,955 (35,990) $ 7,965	Recognized in Other Compre- hensive Income $ - 40 (590) - - - (550) - $ (550)	Exchange Differences $ (531) - - (29) (1,580) (496) (2,636) (20,056) $ (22,692)	Closing Balance $ 39,323 22,860 47,150 2,451 77,122 35,596 224,502 1,178,934 $ 1,403,436 (Continued)

• 48 -

Opening Balance Deferred tax liabilities Temporary differences Investment income abroad $ 117,470 Land revaluation incremental tax 99,828 Others 65,360 $ 282,658 For the year ended December 31, 2022 Opening Balance Deferred tax assets Temporary differences Allowance for write - down of inventories $ 170,416 Exchange differences on translating the financial statements of foreign operations 34,660 Defined benefit obligations 50,490 Allowance for impairment loss 7,910 Others 28,462 291,938 Loss carryforwards 527,118 $ 819,056 Deferred tax liabilities Temporary differences Investment income abroad $ 117,480 Land revaluation incremental tax 99,828 Others 58,911 $ 276,219	Recognized in Profit or Loss $ 1,520 - (15,750) $ (14,230) Recognized in Profit or Loss $ (98,498) - 4,180 (961) (917) (96,196) 703,631 $ 607,435 $ (10) - - $ (10)	Recognized in Other Compre- hensive Income $ - - - $ - Recognized in Other Compre- hensive Income $ - (11,840) (3,750) - - (15,590) - $ (15,590) $ - - - $ -	Exchange Differences $ - - 217 $ 217 Exchange Differences $ 3,200 - - 134 247 3,581 4,231 $ 7,812 $ - - 6,449 $ 6,449	Closing Balance $ 118,990 99,828 49,827 $ 268,645 (Concluded) Closing Balance $ 75,118 22,820 50,920 7,083 27,792 183,733 1,234,980 $ 1,418,713 $ 117,470 99,828 65,360 $ 282,658
Deferred tax assets Temporary differences Allowance for write - down of inventories Exchange differences on translating the financial statements of foreign operations Defined benefit obligations Allowance for impairment loss Others Loss carryforwards Deferred tax liabilities Temporary differences Investment income abroad Land revaluation incremental tax Others

• 49 -

• e. Information about unused loss carryforwards

Loss carryforwards as of December 31, 2023 comprised:

Unused Amount	Unused Amount	Expiry Year
$	445,257	2024
	371,321	2025
	201,233	2026
	2,371,401	2027
	1,326,524	2028
$	4,715,736

• f. The aggregate amount of temporary differences associated with investments for which deferred tax liabilities have not been recognized

As of December 31, 2023 and 2022, the taxable temporary differences associated with investments in subsidiaries for which no deferred tax liabilities have been recognized were $2,034,048 thousand and $2,136,605 thousand, respectively.

• g. Domestic income tax assessments

	Assessment Year
The Company	2020
TUI	2021
WCI	2021
UVC	2021

• h. Pillar Two income tax legislation

In November and December 2023, the government of Vietnam and Malaysia, where UPCM Trading (Vietnam) and UPC Chemicals (Malaysia) are incorporated, enacted the Pillar Two income tax legislation effective January 1, 2024 and 2025, respectively. Since the Pillar Two income tax legislation was not effective at the reporting date, the Group has no related current tax exposure.

27. LOSS PER SHARE

Basic loss per share	Unit: NT$ Per Share For the Year Ended December 31	Unit: NT$ Per Share For the Year Ended December 31	Unit: NT$ Per Share For the Year Ended December 31
		2023 $ (0.21)	2022 $ (0.94)

The net losses and weighted average number of ordinary shares used to calculate the loss per share are as follows:

Net Loss for the Year

Net losses used to compute the losses per share	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2023 $ (282,826)	2022 $ (1,236,224)

• 50 -

Shares

Weighted average number of ordinary shares used in the computation of basic loss per share	For the Year Ended	For the Year Ended	December 31
		2023 1,320,440	2022 1,313,101

28. SHARE-BASED PAYMENT ARRANGEMENTS

• Employee share option plan of the Group employee share options

Qualified employees of the Company and its subsidiaries were granted 40,000 options on August 15, 2019. Each option entitles the holder with the right to subscribe for one thousand ordinary shares of the Company. The options granted are valid for 6 years and exercisable at 50%, 75% or 100%, respectively, after the second, third or fourth year from the grant date.

Information on employee share options is as follows:

Balance at January 1 Options exercised Options expired Balance at December 31 Options exercisable, end of the year	For the Year Ended December 31	For the Year Ended December 31
	2023 Number of Options (In Thousands of Units) Weighted- average Exercise Price ($) 16,525 $ 8.5 (9,690) 8.5 (214) 8.5 6,621 8.5 6,621 8.5	2022
		Number of Options (In Thousands of Units) Weighted- average Exercise Price ($) 24,396 $ 8.9 (7,409) 8.6 (462) 8.5 16,525 8.5 7,034 8.5

Options granted in August 2019 were priced using the Black-Scholes pricing model, and the inputs to the model are as follows:

August 2019 Grant-date share price $9.90 Exercise price (Note) $9.90 Expected volatility 26.01%; 25,67%; 25.03% Expected life 4; 4.5; 5 years Expected dividend yield Risk-free interest rate 0.52%; 0.53%; 0.54%

The fair value of employee share options, which were granted on August 15, 2019, was calculated based on their vesting period that starts from the second, third and fourth year from the grant date. Compensation costs recognized were $3,782 thousand and $9,342 thousand for the years ended December 31, 2023 and 2022, respectively.

Note: The exercise price will be adjusted according to the aforementioned employee share option plan.

• 51 -

29. GOVERNMENT GRANTS

• a. In 2023 and 2022, the Group received government grants of $52,130 thousand and $137,553 thousand in mainland China, respectively. The grants were immediate financial supports based on investment agreements.

• b. In 2017, the Group received an air pollution prevention grant of RMB2,972 thousand from mainland China government. The government grant was initially recognized as long-term deferred income, then transferred to other income based on the depreciation of the relevant assets.

In 2023 and 2022, the long-term deferred income of $1,265 thousand and $1,268 thousand was transferred to other income, respectively.

As of December 31, 2023 and 2022, the balances of the deferred income were $3,876 thousand and $5,203 thousand, respectively.

• c. In 2017, 2016 and 2014, the Group received government grants of RMB20,000 thousand, RMB3,250 thousand and RMB26,400 thousand in mainland China, respectively. The grants were special subsidy of Panjin City, Liaoning Province of mainland China, and development of strategic emerging industries of Sichuan Province. The government grants were initially recognized as long-term deferred income. After the construction of related assets is completed, the government grants transferred to other income based on the depreciation of the assets.

In 2023 and 2022, the long-term deferred income of $11,679 thousand and $11,708 thousand, respectively, was transferred to other income.

As of December 31, 2023 and 2022, the balances of the deferred income were $141,804 thousand and $155,874 thousand, respectively.

30. CAPITAL MANAGEMENT

The Group manages its capital to ensure that entities in the Group will be able to continue as going concerns while maximizing the return to stakeholders through the optimization of the debt and equity balance. It was estimated that the Group’s overall strategy remains unchanged in the short term.

The capital structure of the Group consists of net liability (total liability offset by cash and cash equivalents and financial assets at amortized cost) and net asset (total asset offset by cash and cash equivalents and financial assets at amortized cost).

Key management personnel of the Group review the capital structure on a quarterly basis. As part of this review, the key management personnel consider the cost of capital and the risks associated with each class of capital. Based on recommendations of the key management personnel, in order to balance the overall capital structure, the Group may adjust the amount of dividends policy and the amount of new debt issued or existing debt redeemed.

The Group has a target net liability ratio of 50% determined as the proportion of net debt to assets.

• 52 -

Net Liability Ratio

The net liability ratio at end of the reporting period was as follows:

Liabilities Cash and cash equivalents (Note) Net liabilities Assets Cash and cash equivalents (Note) Net assets Net liability to net asset ratio		December 31	December 31
		2023 $ 25,607,138 (3,542,346) $ 22,064,792 $ 55,656,669 (3,542,346) $ 52,114,323 42%	2022 $ 24,456,220 (4,278,542) $ 20,177,678 $ 50,562,422 (4,278,542) $ 46,283,880 44%

Note: Cash and cash equivalents include financial assets at amortized cost.

31. FINANCIAL INSTRUMENTS

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

December 31, 2023

Financial liabilities Financial liabilities at amortized cost Domestic corporate bonds payable December 31, 2022 Financial liabilities Financial liabilities at amortized cost Domestic corporate bonds payable	Carrying Amount $ 2,996,364 Carrying Amount $ 8,990,911			FairValue	FairValue
			Level 1 $ -	Level 2 Level 3 $ 2,999,919 $ - FairValue		Total $ 2,999,919
			Level 1 $ -	Level 2 $ 9,012,414	Level 3 $ -	Total $ 9,012,414

Apart from the mentioned above, the management considered that the carrying amounts of financial assets and financial liabilities not measured at fair value approximated their fair values or were unmeasurable.

• 53 -

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

• 1) Fair value hierarchy

December 31, 2023 Financial assets at FVTPL Mutual funds Financial assets at FVTOCI Investments in equity instruments Domestic listed shares and emerging market shares Domestic unlisted shares Foreign unlisted shares December 31, 2022 Financial assets at FVTPL Mutual funds Financial assets at FVTOCI Investments in equity instruments Domestic listed shares and emerging market shares Domestic unlisted shares Foreign unlisted shares	Level 1 $ 6,852 $ 15,763,538 - - $ 15,763,538 Level 1 $ 42,227 $ 11,075,657 - - $ 11,075,657	Level 2 $ - $ - - - $ - Level 2 $ - $ - - - $ -	Level 3 $ - $ - 754,795 2 $ 754,797 Level 3 $ - $ - 671,501 6 $ 671,507	Total $ 6,852 $ 15,763,538 754,795 2 $ 16,518,335 Total $ 42,227 $ 11,075,657 671,501 6 $ 11,747,164

There were no transfers between Levels 1 and 2 in the current and prior years.

• 54 -

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

For the year ended December 31, 2023

Financial Assets Balance at January 1, 2023 Recognized in other comprehensive income (unrealized gain on financial assets at FVTOCI) Disposals Proceed from return of investment Balance at December 31, 2023 For the year ended December 31, 2022	Financial Assets at FVTOCI	Financial Assets at FVTOCI
	Equity Instruments
		$ 671,507 106,360 (6,745) (16,325) $ 754,797

Financial Assets Balance at January 1, 2022 Recognized in other comprehensive income (unrealized loss on financial assets at FVTOCI) Purchases Proceed from return of investment Balance at December 31, 2022	Financial Assets at FVTOCI	Financial Assets at FVTOCI
	I	Equity nstruments
		$ 699,468 (41,808) 27,374 (13,527) $ 671,507

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

Financial Instrument Financial liabilities - domestic corporate bonds payable	Valuation Technique and Inputs
	The fair value is calculated using a volume-weighted average price on the TPEx at the end of the reporting period.

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

The fair values of unlisted equity securities - ROC were determined using the asset approach. The approach is mainly utilized to evaluate venture capital firms. In this approach, the net asset value is taken into account. The market approach is used for determining the fair values of other securities, in which the fair value of the target securities is determined based on the market transaction price and market conditions of the listed equity securities of other similar companies.

• 55 -

• c. Categories of financial instruments

Financial assets Financial assets mandatorily classified as at FVTPL Financial assets at amortized cost (1) Equity instruments at FVTOCI Financial liabilities Financial liabilities at amortized cost (2)	December 31
	2023 2022 $ 6,852 $ 42,227 8,560,128 8,110,805 16,518,335 11,747,164 24,060,496 22,704,854

• 1) The balances included financial assets measured at amortized cost, which comprise cash and cash equivalents, financial assets at amortized cost, notes receivable, trade receivables, other receivables and refundable deposits.

• 2) The balances included financial liabilities at amortized cost, which comprise short-term borrowings, notes payable, trade payables, other payables, current portion of long-term liabilities, bonds payable, long-term borrowings and guarantee deposits received.

• d. Financial risk management objectives and policies

The Group’s major financial instruments include equity investments, receivables, payables, and borrowings. The Group’s corporate treasury function provides services to the business, 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 exposures by degree and magnitude of risks. These risks include market risk (including foreign currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

1) Market risk

The Group activities exposed it primarily to the financial risks of changes in foreign currency exchange rates and interest rates.

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

a) Foreign currency risk

The Company and several subsidiaries of the Company have foreign currency denominated sales and purchases, which exposed the Group to foreign currency risk. Approximately 15% of the Group’s sales is denominated in currencies other than the functional currency, whilst almost 30% of costs is denominated in currencies other than the functional currencies of the Group’s entities.

The carrying amounts of the Group’s foreign currency denominated monetary assets and monetary liabilities (including those eliminated on consolidation) at the end of the year are set out in Note 36.

• 56 -

Sensitivity analysis

The Group is mainly exposed to the USD.

The following table details the Group’s sensitivity to a 3% increase and decrease in the New Taiwan dollar, RMB and MYR against the USD. The sensitivity rate used when reporting foreign currency risk internally to key management personnel and representing management’s assessment of the reasonably possible change in foreign exchange rates is 3%. The sensitivity analysis included only outstanding foreign currency denominated monetary their translation at the end of the year for a 3% change in foreign currency rates. A positive number below indicates an increase/a decrease in pre-tax/post-tax profit and other equity associated with the New Taiwan dollar, RMB and MYR strengthening 3% against the USD. For a 3% weakening of the New Taiwan dollar, RMB and MYR against the USD, there would be an equal and opposite impact on pre-tax loss, and the balances below would be negative.

Profit or loss	USD Impact
	For the Year Ended December 31
	2023 2022 $ 51,098 $ 34,834

This was mainly attributable to the exposure on outstanding receivables, payables and borrowings denominated in USD.

The Group’s sensitivity to foreign currency increased for the year ended December 31, 2023 mainly due to the increase in the amount of payables in USD, leading to the increase in the amount of net foreign currency liabilities.

b) Interest rate risk

The Group is exposed to interest rate risk because the Group borrows funds at both fixed and floating interest rates. Hedging activities are evaluated regularly to align with interest rate views and defined risk appetites ensuring the most cost-effective hedging strategies are applied.

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

Fair value interest rate risk Financial assets Financial liabilities Cash flow interest rate risk Financial liabilities	December 31
	2023 2022 $ 373,306 $ 39,377 16,305,287 14,789,595 4,983,315 4,967,974

The Group is exposed to fair value interest rate risk in relation to fixed-rate bank borrowings and bonds payable. The Group aims to keep borrowings at floating rates to minimize fair value interest rate risk.

The Group is also exposed to cash flow interest rate risk in relation to variable-rate bank borrowings. It is the Group’s policy to keep its borrowings at floating interest rates so as to minimize the fair value interest rate risk.

• 57 -

Sensitivity analysis

The sensitivity analysis below was determined based on the Group’s exposure to interest rates for non-derivative instruments at the end of the year. For floating rate liabilities, the analysis was prepared assuming the amount of each liability outstanding at the end of the year was outstanding for the whole year. A 50 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates.

If interest rates had been 50 basis points higher/lower and all other variables were held constant, the Group pre-tax loss for the years ended December 31, 2023 and 2022 increase/decrease by $24,917 thousand and $24,840 thousand, respectively.

The Group’s sensitivity to interest rates increased for the year ended December 31, 2023 mainly due to the increase in the amount of variable-rate bank borrowings.

c) Other price risk

The Group was exposed to equity price risk through its investments in fund beneficiary certifications and equity securities. Equity investments are held for strategic rather than for trading purposes, the Group does not actively trade these investments. The Group’s equity price risk is mainly concentrated on strategic investments of domestic equity instruments.

Sensitivity analysis

The sensitivity analysis below was determined based on the exposure to equity price risks at the end of the year.

If equity prices had been 5% higher/lower, post-tax profit or loss for the years ended December 31, 2023 and 2022 would have increased/decreased by $344 thousand and $2,111 thousand, respectively, as a result of the changes in fair value of financial assets at FVTOCI. Post-tax other comprehensive income for the years ended December 31, 2023 and 2022 would have increased/decreased by $825,917 thousand and $587,358 thousand, respectively, as a result of the changes in fair value of financial assets at FVTOCI.

The Group’s sensitivity to prices risk increased compared with the same period last year, mainly due to the increase in the market value of equity securities investments this year.

2) Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in a financial loss to the Group. At the end of the year, the Group’s maximum exposure to credit risk, which would cause a financial loss to the Group due to the failure of the counterparty to discharge its obligation, could be the carrying amount of the respective recognized financial assets as stated in the balance sheets.

The Company adopts a policy of only dealing with creditworthy counterparties. Before accepting any new clients, the relevant departments perform credit evaluation and internal credit scoring, sales and administration departments assess the potential customers’ credit quality and define credit limit for customers. Limits and scoring attributed to customers are reviewed twice a year.

• 58 -

Besides, the Group reviews the recoverable amount of each individual trade debt at the end of the reporting period to ensure that adequate impairment losses are recognized on irrecoverable amounts.

The Group transacts with a large number of customers. The Group did not have significant credit risk exposure from any single counterparty or any group of counterparties having similar characteristics. Concentration of credit risk to any counterparty did not exceed 5% of gross monetary assets at any time during the years ended December 31, 2023 and 2022.

The Group’s concentration of credit risk by geographical locations was mainly in mainland China, which accounted for 65% and 62% of total trade receivables as of December 31, 2023 and 2022, respectively.

3) Liquidity risk

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

The Group relies on bank borrowings as a significant source of liquidity. As of December 31, 2023 and 2022, the Group had available unutilized bank loan facilities set out in (b) below.

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

The following table details the Group’s remaining contractual maturities for its non-derivative financial liabilities with agreed upon repayment periods. The table has been drawn up based on the undiscounted cash flows of financial liabilities from the earliest date on which the 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 and 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.

December 31, 2023 Non-derivative financial liabilities Non-interest bearing liabilities Lease liabilities Variable interest rate liabilities Fixed interest rate liabilities	0-3 Months $ 2,798,910 1,358 986,997 1,811,121 $ 5,598,386	3 Months to 1 Year $ 144,743 4,078 1,221,687 598,562 $ 1,969,070	1-5 Years $ - 12,604 2,774,631 13,878,174 $ 16,665,409	Over 5 years $ - 4,939 - - $ 4,939 (Continued)

• 59 -

0-3 Months December 31, 2022 Non-derivative financial liabilities Non-interest bearing liabilities $ 2,955,470 Lease liabilities 3,584 Variable interest rate liabilities 1,257,517 Fixed interest rate liabilities 1,563,223 $ 5,779,794 Financing facilities Unsecured bank loan facilities Amount used Amount unused	3 Months to 1 Year $ 192,394 11,476 500,000 7,374,572 $ 8,078,442	3 Months to 1 Year $ 192,394 11,476 500,000 7,374,572 $ 8,078,442		1-5 Years Over 5 years $ - $ - 14,108 3,729 3,210,457 - 5,830,000 - $ 9,054,565 $ 3,729 (Concluded) December 31	1-5 Years Over 5 years $ - $ - 14,108 3,729 3,210,457 - 5,830,000 - $ 9,054,565 $ 3,729 (Concluded) December 31
			$	2023 18,271,172 26,236,892 44,508,064	2022 $ 10,735,769 31,354,358 $ 42,090,127
			$

b) Financing facilities

e. Transfers of financial assets

During the years ended December 31, 2023 and 2022, the Group entered into discount loan transaction by using some of its banker’s acceptance bills in mainland China. According to the loan contract, if these banker’s acceptance bills are not recoverable at maturity, transferees have the right to demand the Group to pay the unsettled balance. Since the Group has not transferred the significant risks and rights relating to these banker’s acceptance bills, the Group continues to recognize the full carrying amounts of these banker’s acceptance bills.

As of December 31, 2023 and 2022, the carrying amounts of these banker’s acceptance bills that have been transferred but not derecognized were $1,068,720 thousand and $817,496 thousand, respectively. (Including eliminated on consolidation inter-subsidiary acceptance bills of $694,252 thousand and $576,724 thousand, respectively.) The carrying amounts of the related liabilities were $1,068,720 thousand and $817,496 thousand, respectively.

• 60 -

32. TRANSACTIONS WITH RELATED PARTIES

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

• a. Related party name and category

Related Party Name Related Party Category

Lien Hwa Industrial Holdings Corp. (LHIHC)

Lien Hwa Property Development Corp. (LHPDC) Linde Lienhwa Industrial GASES Co., Ltd. (LLIG) Lien Hwa Industrial GASES (Soochow) Co., Ltd. (LLIG Soochow)

Asia Union Electronic Chemical Corp. (AUECC) Harbinger Venture Management Co., Ltd. (HVMC) Lienhwa United LPG Co., Ltd. (LPG)

With the same chairman/investors with significant influence over the Group Subsidiary of LHIHC Associate of LHIHC Associate of LLIG

Associate of LLIG With the same chairman The Company is its director

• b. Purchases of goods

For the Year Ended December 31 2023 2022 $ 31,435 $ 31,400

Related Party Category

Associates of investors with significant influence over the Group

• c. Lease arrangements - the Group is lessee

Line Item Related Party Category/Name Lease liabilities Associates of investors with significant influence over the Group LHPDC Related Party Category/Name Interest expense Associates of investors with significant influence over the Group LHPDC		December	31
	2023 2022 $ 2,995 $ 202 2,199 12,139 $ 5,194 $ 12,341 For the Year Ended December 31
		2023 $ 83 134 $ 217	2022 $ 20 320 $ 340

• 61 -

• d. Lease arrangements - the Group is lessor

Future lease payments receivable are as follows:

Related Party Name AUECC LPG		**December **	**31 **
		2023 $ 25,252 3,969 $ 29,221	2022 $ 34,702 3,969 $ 38,671

Lease income was as follows:

Related Party Name Associates of investors with significant influence over the Group AUECC LPG Service revenue Line Item Related Party Category/Name Other income Associates of investors with significant influence over the Group LHPDC	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
	2023 2022 $ 18,967 $ 18,641 5,530 5,530 $ 24,497 $ 24,171 For the Year Ended December 31
		2023 $ 46 562 $ 608	2022 $ 49 546 $ 595

• e. Service revenue

Transactions with related parties were made at prices and terms comparable to those that would be obtained in similar transactions with non-related parties.

• f. Other receivables from related parties (excluding loans to related parties)

Line Item Related Party Name Other receivables from LPG related parties LLIG LHPDC		**December **	**31 **
		2023 $ 1,580 932 121 $ 2,633	2022 $ 1,547 540 75 $ 2,162

• 62 -

g. Refundable deposits

Line Item Related Party Name Other non-current assets LHPDC Payables to related parties Line Item Related Party Category Trade payables Associates of investors with significant influence over the Group		December	31
		2023 $ 1,571 December	2022 $ 1,571 31
		2023 $ 3,079	2022 $ 4,841

• h. Payables to related parties

• i. Guarantee deposits received

Line Item Related Party Name Guarantee deposits received AUECC		December	31
		2023 $ 3,685	2022 $ 3,685

• j. Remuneration of key management personnel

The remuneration of directors and key executives was as follows:

Short-term employee benefits Post-employment benefits Share-based payments	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2023 $ 30,072 463 516 $ 31,051	2022 $ 32,648 460 1,498 $ 34,606

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

33. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

The following asset were provided as performance bond for bank:

Restricted deposit (recorded as financial assets at amortized cost)		December	31
		2023 $ 33,723	2022 $ 33,907

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34. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

In addition to those disclosed in other notes, significant commitments and contingencies of the Group as of December 31, 2023 and 2022 were as follows:

• a. As of December 31, 2023 and 2022, unused letters of credit for purchases of raw materials, machinery and equipment amounted to approximately $133,035 thousand and $515,075 thousand, respectively.

• b. Unrecognized commitments were as follows:

Acquisition of raw materials and supplies Acquisition of property, plant and equipment		December 31	December 31
		2023 $ 2,318,139 $ 638,635	2022 $ 1,988,242 $ 863,853

• c. As of December 31, 2023, the Company provided financial guarantee for subsidiaries investees to purchase raw materials or to obtain bank loan facilities. The amount of financial guarantee was as follows:

• 1) Taizhou Union Plastics - US$20,000 thousand.

• 2) Nanchong Unicizer Industrial - RMB640,000 thousand.

• 3) Panjin Union Materials - RMB258,000 thousand.

• 4) Panjin Union Chemical - RMB865,000 thousand.

• 5) UPC Chemicals (Malaysia) - US$20,000 thousand.

• 6) Union Hong Kong - US$15,000 thousand and EUR4,350 thousand.

35. SIGNIFICANT LOSSES FROM DISASTERS

On January 29, 2021, a fire damaged the Group’s production line of specialty plasticizers (specialty chemicals) in the Linyuan Plant. The accident caused property losses and caused disruption of the Group’s operation in 2021. The insurance company paid the replacement cost for the total loss of the assets. After deducting the policy deductible, the final approved claim amount was $346,785 thousand. The Group received an insurance claim prepayment amount of $80,000 thousand in June 2021 (accounted for as other income in 2021), and the remaining claim settlement amount of $266,785 thousand was recognized as indemnity in 2022.

• 64 -

36. SIGNIFICANT FINANCIAL ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

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

December 31, 2023

		Foreign			Carrying
		Currency			Amount
	(In Thousands)		Exchange Rate	(In	Thousands)
Financial assets
Monetary items
USD	$	2,154	30.705 (USD:NTD)	$	66,139
USD		11,136	7.083 (USD:RMB)		341,931
MYR		29,097	0.218 (MYR:USD)		194,646
				$	602,716
Non-monetary items
Investments accounted for using the
equity method
USD		765	30.705 (USD:NTD)	$	23,498
Financial liabilities
Monetary items
USD		18,501	30.705 (USD:NTD)	$	568,073
USD		48,744	7.083 (USD:RMB)		1,496,685
MYR		36,061	0.218 (MYR:USD)		241,232
				$	2,305,990
December 31, 2022
		Foreign			Carrying
		Currency			Amount
	(In Thousands)		Exchange Rate	(In	Thousands)
Financial assets
Monetary items
USD	$	3,740	30.710 (USD:NTD)	$	114,855
USD		7,263	6.965 (USD:RMB)		223,047
MYR		17,233	0.228 (MYR:USD)		120,552
				$	458,454
Non-monetary items
Investments accounted for using the
equity method
USD		748	30.710 (USD:NTD)	$	22,979
					(Continued)

• 65 -

		Foreign			Carrying
		Currency			Amount
	(In Thousands)		Exchange Rate	(In	Thousands)
Financial liabilities
Monetary items
USD	$	9,338	30.710 (USD:NTD)	$	286,770
USD		37,806	6.965 (USD:RMB)		1,161,022
MYR		24,557	0.228 (MYR:USD)		171,787
				$	1,619,579
					(Concluded)

For the years ended December 31, 2023 and 2022, net foreign exchange losses were $78,361 thousand and $148,127 thousand, respectively. It is impractical to disclose net foreign exchange (losses) gains by each significant foreign currency due to the variety of the foreign currency transactions and functional currencies of the entities in the Group.

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 investments in subsidiaries and associates) (Table 3)

• 4) Acquisition of individual real estate at costs of at least NT$300 million or 20% of the paid-in capital (None)

• 5) Disposal of individual real estate at prices of at least NT$300 million or 20% of the paid-in capital (None)

• 6) Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital (Table 4)

• 7) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital (Table 5)

• 8) Trading in derivative instruments (None)

• 9) Intercompany relationships and significant intercompany transactions (Table 6)

• 10) Information on investees (Table 7)

• 66 -

• b. Information on investments in mainland China

• 1) Information on any investee company in mainland China, showing the name, principal business activities, paid-in capital, method of investment, inward and outward remittance of funds, ownership percentage, net income of investees, investment income or loss, carrying amount of the investment at the end of the year, repatriations of investment income, and limit on the amount of investment in the mainland China area (Table 8)

• 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 year (Table 9)

  • b) The amount and percentage of sales and the balance and percentage of the related receivables at the end of the year (Table 9)

  • c) The amount of property transactions and the amount of the resultant gains or losses (None)

  • d) The balance of negotiable instrument endorsements or guarantees or pledges of collateral at the end of the year and the purposes (Note 34 and Table 2)

  • e) The highest balance, the ending balance, the interest rate range, and total current year interest with respect to financing of funds (None)

  • f) Other transactions that have a material effect on the profit or loss for the year or on the financial position, such as the rendering or receipt of services (None)

• c. Information of major shareholders: List all shareholders with ownership of 5% or greater showing the name of the shareholder, the number of shares owned, and percentage of ownership of each shareholder (Table 10)

38. SEGMENT INFORMATION

a. General information

Information reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance focuses on the regions where the Group operates; thus, the reportable segments are as follows:

• Eastern China - Zhenjiang Union Chemical, Taizhou Union Chemical, Taizhou Union Plastics, Taizhou Union Logistics, Jiangsu Union Logistics, ZhenJiang Union Torch Estate.

• Southern China - Zhongshan Unicizers, Zhuhai Unicizers and Guangdong Union Logistics.

• Northern China - Panjin Union Chemical, Panjin Union Logistics, Panjin Union Materials and Panjin Union Plastics.

• Central China - Nanchong Unicizers and Sichung Logistics.

• 67 -

• Taiwan - The Company, Wei Chen Investment Co., Union Venture Capital Corp. and Taiwan Union International Investment Corporation.

• Other regions - Union Hong Kong Petrochemicals, Glory Ace, UPC Chemicals (Malaysia) Sdn. Bhd., UPCM Trading (Thailand), UPCM Trading (Vietnam) and other overseas Investment Companies.

• b. Information of reportable segments

Revenue from external customers Inter-segment revenue Segment revenue Interest income Finance costs Significant gains or losses Depreciation expense Amortization expense Profit (loss) from segment Asset of segment Liability of segment Revenue from external customers Inter-segment revenue Segment revenue Interest income Finance costs Significant gains or losses Depreciation expense Amortization expense Profit (loss) from segment Asset of segment Liability of segment				**Fo **	rthe Year Ended D	ecember 31, 2023
		Eastern China $ 33,844,261 2,111,856 $ 35,956,117 $ 95,242 30,344 616,282 77,671 518,638	Southern China $ 17,045,570 2,609,657 $ 19,655,227 $ 12,209 77,995 264,585 53,873 (255,917 )	Northern China $ 9,885,081 2,281,536 $ 12,166,617 $ 4,403 123,237 453,085 18,292 (691,605 )	Central China Taiwan $ 3,461,898 $ 3,150,505 109,455 2,380,203 $ 3,571,353 $ 5,530,708 $ 2,838 $ 5,244 36,306 229,130 193,228 173,619 16,967 17,768 (266,260 ) 222,388 December 31, 2023		Other Regions Adjustment and Elimination $ 5,808,731 $ - 12,577,130 (22,069,837) $ 18,385,861 $ (22,069,837) $ 29,019 $ (95,636 ) 559 (95,636 ) 140,517 - 9,266 - 189,930 -	Total $ 73,196,046 - $ 73,196,046 $ 53,319 401,935 1,841,316 193,837 (282,826 )
		Eastern China $ 18,406,166 4,404,071	Southern China $ 7,406,134 4,345,439	Northern China $ 10,295,551 7,066,418 Fo	Central China $ 2,344,711 1,727,162 r the Year Ended D	Taiwan $ 48,742,021 16,489,472 ecember 31, 2022	Other Regions Adjustment and Elimination $ 6,743,818 $ (38,281,732 ) 2,369,583 (10,795,007 )	Total $ 55,656,669 25,607,138
		Eastern China $ 33,713,711 2,306,532 $ 36,020,243 $ 99,895 39,558 623,334 63,959 (267,873 )	Southern China $ 16,663,108 2,466,327 $ 19,129,435 $ 8,858 48,234 238,140 63,005 (577,121 )	Northern China $ 9,661,694 3,738,482 $ 13,400,176 $ 10,510 94,201 437,244 51,233 (610,911 )	Central China Taiwan $ 3,166,409 $ 4,171,186 486,632 1,332,482 $ 3,653,041 $ 5,503,668 $ 3,055 $ 2,202 32,535 171,532 193,621 148,672 13,761 27,612 (220,974 ) 468,541 December 31, 2022		Other Regions Adjustment and Elimination $ 5,443,535 $ - 12,539,517 (22,869,972) $ 17,983,052 $ (22,869,972) $ 5,093 $ (100,211 ) 1,926 (100,211 ) 136,263 - 1,025 - (27,886 ) -	Total $ 72,819,643 - $ 72,819,643 $ 29,402 287,775 1,777,274 220,595 (1,236,224 )
		Eastern China $ 17,553,456 3,828,632	Southern China $ 6,429,363 3,061,209	Northern China $ 10,300,373 6,326,648	Central China Taiwan $ 2,825,026 $ 44,731,023 1,931,526 16,551,105		Other Regions Adjustment and Elimination $ 6,828,526 $ (38,105,345 ) 2,640,667 (9,883,567 )	Total $ 50,562,422 24,456,220

• c. Revenue from major products and services

The Group’s sale of petroleum products accounts for at least 90% of the Group’s revenue.

• 68 -

d. Geographical information

The Group mainly operates in mainland China, revenue from continuing operations from external customers by location of operations and information about its non-current assets by location of assets are detailed below:

China Taiwan Others	Revenue from External Customers For the Year Ended December 31 2023 2022 $ 64,236,810 $ 63,204,922 3,150,505 4,171,186 5,808,731 5,443,535 $ 73,196,046 $ 72,819,643	Revenue from External Customers For the Year Ended December 31 2023 2022 $ 64,236,810 $ 63,204,922 3,150,505 4,171,186 5,808,731 5,443,535 $ 73,196,046 $ 72,819,643		Non-current Assets	Non-current Assets
				**December 31 **
		2023 $ 64,236,810 3,150,505 5,808,731 $ 73,196,046		2023 $ 14,903,146 2,105,267 941,356 $ 17,949,769	2022 $ 13,748,332 2,154,412 2,502,323 $ 18,405,067

Non-current assets include property, plant and equipment, computer software, right-of-use assets and other non-current assets.

• e. Information about major customers

No revenue from any individual customer exceeded 10% of the Group’s total revenues for the years ended December 31, 2023 and 2022.

• 69 -

TABLE 1

UPC TECHNOLOGY CORP. AND SUBSIDIARIES

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

No. (Note 1)	Financing Company	Counter-party	Financial Statement Account	Related Party	Maximum Balance for the Period	Ending Balance	Actual Amount Drawn	Interest Rate	Nature of Financing (Note 2)	Transaction Amount	Reasons for Financing	Allowance for Impairment Loss	Collateral	Collateral	Financing Limit for Each Borrowing Company	Financing Company’s Total Financing Amount Limits
													Item	Value
1	Zhenjiang Union Chemical	ZhenJiang Union Torch Estate Panjin Union Chemical Panjin Union Logistics Nanchong Unicizers Panjin Union Materials Taizhou Union Chemical Zhuhai Unicizers Zhongshan Unicizers Taizhou Union Plastics	Receivable from related parties Receivable from related parties Receivable from related parties Receivable from related parties Receivable from related parties Receivable from related parties Receivable from related parties Receivable from related parties Receivable from related parties	Yes Yes Yes Yes Yes Yes Yes Yes Yes	$ 1,604,024 (RMB 370,000 thousand ) 867,040 (RMB 200,000 thousand ) 411,844 (RMB 95,000 thousand ) 260,112 (RMB 60,000 thousand ) 368,492 (RMB 85,000 thousand ) 260,112 (RMB 60,000 thousand ) 130,056 (RMB 30,000 thousand ) 130,056 (RMB 30,000 thousand ) 130,056 (RMB 30,000 thousand )	$ 780,336 (RMB 80,000 thousand ) 650,280 (RMB 150,000 thousand ) 173,408 (RMB 40,000 thousand ) - 151,732 (RMB 35,000 thousand ) 130,056 (RMB 30,000 thousand ) - - 130,056 (RMB 30,000 thousand )	$ 741,319 (RMB 171,000 thousand ) 498,548 (RMB 115,000 thousand ) 173,408 (RMB 40,000 thousand ) - 151,732 (RMB 35,000 thousand ) - - - -	1.51% 1.51% 1.51% 1.51% 1.51% 1.51% 1.51% 1.51% 1.51%	2 2 2 2 2 2 2 2 2	$ - - - - - - - - -	Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital	$ - - - - - - - - -	- - - - - - - - -	$ - - - - - - - - -	$ 2,208,160 (RMB 509,356 thousand ) (Note 3) 2,208,160 (RMB 509,356 thousand ) (Note 3) 2,208,160 (RMB 509,356 thousand ) (Note 3) 2,208,160 (RMB 509,356 thousand ) (Note 3) 2,208,160 (RMB 509,356 thousand ) (Note 3) 2,208,160 (RMB 509,356 thousand ) (Note 3) 2,208,160 (RMB 509,356 thousand ) (Note 3) 2,208,160 (RMB 509,356 thousand ) (Note 3) 2,208,160 (RMB 509,356 thousand ) (Note 3)	$ 4,416,321 (RMB 1,018,712 thousand ) (Note 4) 4,416,321 (RMB 1,018,712 thousand ) (Note 4) 4,416,321 (RMB 1,018,712 thousand ) (Note 4) 4,416,321 (RMB 1,018,712 thousand ) (Note 4) 4,416,321 (RMB 1,018,712 thousand ) (Note 4) 4,416,321 (RMB 1,018,712 thousand ) (Note 4) 4,416,321 (RMB 1,018,712 thousand ) (Note 4) 4,416,321 (RMB 1,018,712 thousand ) (Note 4) 4,416,321 (RMB 1,018,712 thousand ) (Note 4)
2	Glory Ace	Union Hong Kong	Receivable from related parties	Yes	598,748 (US$ 19,500 thousand )	583,395 (US$ 19,000 thousand )	-	-	2	-	Operating capital	-	-	-	599,776 (US$ 19,534 thousand ) (Note 5)	599,776 (US$ 19,534 thousand ) (Note 6)
3	CHL	Union Hong Kong UPC Chemicals (Malaysia) UPCM Trading (Thailand)	Receivable from related parties Receivable from related parties Receivable from related parties	Yes Yes Yes	601,818 (US$ 19,600 thousand ) 245,640 (US$ 8,000 thousand ) 92,115 (US$ 3,000 thousand )	601,818 (US$ 19,600 thousand ) - 92,115 (US$ 3,000 thousand )	251,781 (US$ 8,200 thousand ) - 46,058 (US$ 1,500 thousand )	- - -	2 2 2	- - -	Operating capital Operating capital Operating capital	- - -	- - -	- - -	11,341,551 (US$ 369,371 thousand ) (Note 7) 11,341,551 (US$ 369,371 thousand ) (Note 7) 11,341,551 (US$ 369,371 thousand ) (Note 7)	22,683,103 (US$ 738,743 thousand ) (Note 8) 22,683,103 (US$ 738,743 thousand ) (Note 8) 22,683,103 (US$ 738,743 thousand ) (Note 8)

(Continued)

• 70 -

No. (Note 1)	Financing Company	Counter-party	Financial Statement Account	Related Party	Maximum Balance for the Period	Ending Balance	Actual Amount Drawn	Interest Rate	Nature of Financing (Note 2)	Transaction Amount	Reasons for Financing	Allowance for Impairment Loss	**Collateral **	**Collateral **	Financing Limit for Each Borrowing Company	Financing Company’s Total Financing Amount Limits
													Item	Value
4	Guangdong Union Logistics	Zhuhai Unicizers Zhongshan Unicizers	Receivable from related parties Receivable from related parties	Yes Yes	$ 130,056 (RMB 30,000 thousand ) 43,352 (RMB 10,000 thousand )	$ 130,056 (RMB 30,000 thousand ) 43,352 (RMB 10,000 thousand )	$ 130,056 (RMB 30,000 thousand ) 4,335 (RMB 1,000 thousand )	1.51% 1.51%	2 2	$ - -	Operating capital Operating capital	$ - -	- -	$ - -	$ 192,370 (RMB 44,374 thousand ) (Note 9) 192,370 (RMB 44,374 thousand ) (Note 9)	$ 192,370 (RMB 44,374 thousand ) (Note 10) 192,370 (RMB 44,374 thousand ) (Note 10)
5	Jiangsu Union Logistics	Panjin Union Chemical Panjin Union Materials	Receivable from related parties Receivable from related parties	Yes Yes	173,408 (RMB 40,000 thousand ) 43,352 (RMB 10,000 thousand )	173,408 (RMB 40,000 thousand ) 43,352 (RMB 10,000 thousand )	166,905 (RMB 38,500 thousand ) 42,485 (RMB 9,800 thousand )	1.51% 1.51%	2 2	- -	Operating capital Operating capital	- -	- -	- -	254,880 (RMB 58,793 thousand ) (Note 11) 254,880 (RMB 58,793 thousand ) (Note 11)	254,880 (RMB 58,793 thousand ) (Note 12) 254,880 (RMB 58,793 thousand ) (Note 12)
6	Taizhou Union Plastics	Nanchong Unicizers Panjin Union Logistics Panjin Union Materials Panjin Union Chemical Taizhou Union Logistics ZhenJiang Union Chemical Taizhou Union Chemical Zhuhai Unicizers Zhongshang Unicizers	Receivable from related parties Receivable from related parties Receivable from related parties Receivable from related parties Receivable from related parties Receivable from related parties Receivable from related parties Receivable from related parties Receivable from related parties	Yes Yes Yes Yes Yes Yes Yes Yes Yes	1,105,476 (RMB 255,000 thousand ) 346,816 (RMB 80,000 thousand ) 1,170,504 (RMB 270,000 thousand ) 1,473,968 (RMB 340,000 thousand ) 368,492 (RMB 85,000 thousand ) 130,056 (RMB 30,000 thousand ) 520,224 (RMB 120,000 thousand ) 260,112 (RMB 60,000 thousand ) 260,112 (RMB 60,000 thousand )	1,105,476 (RMB 255,000 thousand ) 260,112 (RMB 60,000 thousand ) 997,096 (RMB 230,000 thousand ) 1,473,968 (RMB 340,000 thousand ) 195,084 (RMB 45,000 thousand ) - 433,520 (RMB 100,000 thousand ) 260,112 (RMB 60,000 thousand ) 130,056 (RMB 30,000 thousand )	975,420 (RMB 225,000 thousand ) 260,112 (RMB 60,000 thousand ) 884,381 (RMB 204,000 thousand ) 1,343,912 (RMB 310,000 thousand ) 88,872 (RMB 20,500 thousand ) - 173,408 (RMB 40,000 thousand ) 86,704 (RMB 20,000 thousand ) 43,352 (RMB 10,000 thousand )	1.51% 1.51% 1.51% 1.51% 1.51% 1.51% 1.51% 1.51% 1.51%	2 2 2 2 2 2 2 2 2	- - - - - - - - -	Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital	- - - - - - - - -	- - - - - - - - -	- - - - - - - - -	2,899,642 (RMB 668,860 thousand ) (Note 13) 2,899,642 (RMB 668,860 thousand ) (Note 13) 2,899,642 (RMB 668,860 thousand ) (Note 13) 2,899,642 (RMB 668,860 thousand ) (Note 13) 2,899,642 (RMB 668,860 thousand ) (Note 13) 2,899,642 (RMB 668,860 thousand ) (Note 13) 2,899,642 (RMB 668,860 thousand ) (Note 13) 2,899,642 (RMB 668,860 thousand ) (Note 13) 2,899,642 (RMB 668,860 thousand ) (Note 13)	5,799,283 (RMB 1,337,720 thousand ) (Note 14) 5,799,283 (RMB 1,337,720 thousand ) (Note 14) 5,799,283 (RMB 1,337,720 thousand ) (Note 14) 5,799,283 (RMB 1,337,720 thousand ) (Note 14) 5,799,283 (RMB 1,337,720 thousand ) (Note 14) 5,799,283 (RMB 1,337,720 thousand ) (Note 14) 5,799,283 (RMB 1,337,720 thousand ) (Note 14) 5,799,283 (RMB 1,337,720 thousand ) (Note 14) 5,799,283 (RMB 1,337,720 thousand ) (Note 14)
7	Sichung Logistics	Nanchong Unicizers	Receivable from related parties	Yes	151,732 (RMB 35,000 thousand )	-	-	1.51%	2	-	Operating capital	-	-	-	157,214 (RMB 36,265 thousand ) (Note 15)	157,214 (RMB 36,265 thousand ) (Note 16)
																(Continued)

• 71 -

No. (Note 1)	Financing Company	Counter-party	Financial Statement Account	Related Party	Maximum Balance for the Period	Ending Balance	Actual Amount Drawn	Interest Rate	Nature of Financing (Note 2)	Transaction Amount	Reasons for Financing	Allowance for Impairment Loss	**Collateral **	**Collateral **	Financing Limit for Each Borrowing Company	Financing Company’s Total Financing Amount Limits
													Item	Value
8	Zhongshan Unicizers	Panjin Union Chemical Zhuhai Unicizers ZhenJiang Union Chemical	Receivable from related parties Receivable from related parties Receivable from related parties	Yes Yes Yes	$ 130,056 (RMB 30,000 thousand ) 563,576 (RMB 130,000 thousand ) 130,056 (RMB 30,000 thousand )	$ - 433,520 (RMB 100,000 thousand ) -	$ - 420,514 (RMB 97,000 thousand ) -	1.51% 1.51% 1.51%	2 2 2	$ - - -	Operating capital Operating capital Operating capital	$ - - -	- - -	$ - - -	$ 2,980,825 (RMB 687,586 thousand ) (Note 17) 2,980,825 (RMB 687,586 thousand ) (Note 17) 2,980,825 (RMB 687,586 thousand ) (Note 17)	$ 5,961,649 (RMB 1,375,173 thousand ) (Note 18) 5,961,649 (RMB 1,375,173 thousand ) (Note 18) 5,961,649 (RMB 1,375,173 thousand ) (Note 18)
9	Zhuhai Unicizers	Zhongshang Unicizers Nanchong Unicizers ZhenJiang Union Chemical	Receivable from related parties Receivable from related parties Receivable from related parties	Yes Yes Yes	260,112 (RMB 60,000 thousand ) 130,056 (RMB 30,000 thousand ) 130,056 (RMB 30,000 thousand )	260,112 (RMB 60,000 thousand) 130,056 (RMB 30,000 thousand) -	- - -	1.51% 1.51% 1.51%	2 2 2	- - -	Operating capital Operating capital Operating capital	- - -	- - -	- - -	1,031,833 (RMB 238,013 thousand ) (Note 19) 1,031,833 (RMB 238,013 thousand ) (Note 19) 1,031,833 (RMB 238,013 thousand ) (Note 19)	2,063,665 (RMB 476,025 thousand ) (Note 20) 2,063,665 (RMB 476,025 thousand ) (Note 20) 2,063,665 (RMB 476,025 thousand ) (Note 20)
10	Panjin Union Materials	Panjin Union Chemical Panjin Union Logistics	Receivable from related parties Receivable from related parties	Yes Yes	303,464 (RMB 70,000 thousand ) 86,704 (RMB 20,000 thousand )	- -	- -	1.51% 1.51%	2 2	- -	Operating capital Operating capital	- -	- -	- -	722,871 (RMB 166,745 thousand ) (Note 21) 722,871 (RMB 166,745 thousand ) (Note 21)	1,445,742 (RMB 333,489 thousand ) (Note 22) 1,445,742 (RMB 333,489 thousand ) (Note 22)
11	Taizhou Union Chemical	Taizhou Union Logistics Taizhou Union Plastics ZhenJiang Union Chemical Zhuhai Unicizers Nanchong Unicizers Zhongshang Unicizers	Receivable from related parties Receivable from related parties Receivable from related parties Receivable from related parties Receivable from related parties Receivable from related parties	Yes Yes Yes Yes Yes Yes	130,056 (RMB 30,000 thousand ) 520,224 (RMB 120,000 thousand ) 130,056 (RMB 30,000 thousand ) 260,112 (RMB 60,000 thousand ) 260,112 (RMB 60,000 thousand ) 86,704 (RMB 20,000 thousand )	130,056 (RMB 30,000 thousand ) 173,408 (RMB 40,000 thousand ) - 130,056 (RMB 30,000 thousand ) - 86,704 (RMB 20,000 thousand )	21,676 (RMB 5,000 thousand ) - - - - -	1.51% 1.51% 1.51% 1.51% 1.51% 1.51%	2 2 2 2 2 2	- - - - - -	Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital	- - - - - -	- - - - - -	- - - - - -	1,269,257 (RMB 292,779 thousand ) (Note 23) 1,269,257 (RMB 292,779 thousand ) (Note 23) 1,269,257 (RMB 292,779 thousand ) (Note 23) 1,269,257 (RMB 292,779 thousand ) (Note 23) 1,269,257 (RMB 292,779 thousand ) (Note 23) 1,269,257 (RMB 292,779 thousand ) (Note 23)	2,538,513 (RMB 585,558 thousand ) (Note 24) 2,538,513 (RMB 585,558 thousand ) (Note 24) 2,538,513 (RMB 585,558 thousand ) (Note 24) 2,538,513 (RMB 585,558 thousand ) (Note 24) 2,538,513 (RMB 585,558 thousand ) (Note 24) 2,538,513 (RMB 585,558 thousand ) (Note 24)
12	Panjin Union Logistics	Panjin Union Chemical	Receivable from related parties	Yes	86,704 (RMB 20,000 thousand )	86,704 (RMB 20,000 thousand )	-	1.51%	2	-	Operating capital	-	-	-	503,197 (RMB 116,072 thousand ) (Note 25)	1,006,393 (RMB 232,145 thousand ) (Note 26)
																(Continued)

• 72 -

No. (Note 1)	Financing Company	Counter-party	Financial Statement Account	Related Party	Maximum Balance for the Period	Ending Balance	Actual Amount Drawn	Interest Rate	Nature of Financing (Note 2)	Transaction Amount	Reasons for Financing	Allowance for Impairment Loss	**Collateral **	**Collateral **	Financing Limit for Each Borrowing Company	Financing Company’s Total Financing Amount Limits
													Item	Value
13	Panjin Union Chemical	Panjin Union Materials Panjin Union Logistics	Receivable from related parties Receivable from related parties	Yes Yes	$ 86,704 (RMB 20,000 thousand ) 86,704 (RMB 20,000 thousand ) $ 15,259,229	$ 86,704 (RMB 20,000 thousand ) 86,704 (RMB 20,000 thousand ) $ 10,142,812	$ 69,363 (RMB 16,000 thousand ) 49,855 (RMB 11,500 thousand ) $ 6,624,196	1.51% 1.51%	2 2	$ - - -	Operating capital Operating capital	$ - -	- -	$ - -	$ 718,624 (RMB 165,765 thousand ) (Note 27) 718,624 (RMB 165,765 thousand ) (Note 27)	$ 1,437,249 (RMB 331,530 thousand ) (Note 28) 1,437,249 (RMB 331,530 thousand ) (Note 28)

Note 1: 1 for Zhenjiang Union Chemical. 2 for Glory Ace. 3 for CHL. 4 for Guangdong Union Logistics. 5 for Jiangsu Union Logistics. 6 for Taizhou Union Plastics. 7 for Sichung Logistics. 8 for Zhongshan Unicizers. 9 for Zhuhai Unicizers. 10 for Panjin Union Materials. 11 for Taizhou Union Chemical. 12 for Panjin Union Logistics. 13 for Panjin Union Chemical.

• Note 2: The nature of financing is as follows:

• a. Business transaction, fill in 1.

b. The need for short-term financing, fill in 2.

• Note 3: Financing limit for each borrowing company shall not exceed 50% of Zhenjiang Union Chemical’s net equity in latest financial statements which were audited or reviewed.

• Note 4: Financing company’s total financing amount limits shall not exceed 100% of Zhenjiang Union Chemical’s net equity in latest financial statements which were audited or reviewed.

• Note 5: Financing limit for each borrowing company shall not exceed 100% of Glory Ace’s net equity in latest financial statements which were audited or reviewed.

• Note 6: Financing company’s total financing amount limits shall not exceed 100% of Glory Ace’s net equity in latest financial statements which were audited or reviewed.

• Note 7: Financing limit for each borrowing company shall not exceed 50% of Constant’s net equity in latest financial statements which were audited or reviewed.

• Note 8: Financing company’s total financing amount limits shall not exceed 100% of Constant’s net equity in latest financial statements which were audited or reviewed.

• Note 9: Financing limit for each borrowing company shall not exceed 100% of Guangdong Union Logistics’ net equity in latest financial statements which were audited or reviewed.

• Note 10: Financing company’s total financing amount limits shall not exceed 100% of Guangdong Union Logistics’ net equity in latest financial statements which were audited or reviewed.

• Note 11: Financing limit for each borrowing company shall not exceed 100% of Jiangsu Union Logistics’ net equity in latest financial statements which were audited or reviewed.

• Note 12: Financing company’s total financing amount limits shall not exceed 100% of Jiangsu Union Logistics’ net equity in latest financial statements which were audited or reviewed.

• Note 13: Financing limit for each borrowing company shall not exceed 50% of Taizhou Union Plastics’ net equity in latest financial statements which were audited or reviewed.

• Note 14: Financing company’s total financing amount limits shall not exceed 100% of Taizhou Union Plastics’ net equity in latest financial statements which were audited or reviewed.

• Note 15: Financing limit for each borrowing company shall not exceed 100% of Sichung Logistics’ net equity in latest financial statements which were audited or reviewed.

• Note 16: Financing company’s total financing amount limits shall not exceed 100% of Sichung Logistics’ net equity in latest financial statements which were audited or reviewed.

• Note 17: Financing limit for each borrowing company shall not exceed 50% of Zhongshan Unicizers’ net equity in latest financial statements which were audited or reviewed.

• Note 18: Financing company’s total financing amount limits shall not exceed 100% of Zhongshan Unicizers’ net equity in latest financial statements which were audited or reviewed.

• Note 19: Financing limit for each borrowing company shall not exceed 50% of Zhuhai Unicizers’ net equity in latest financial statements which were audited or reviewed.

• Note 20: Financing company’s total financing amount limits shall not exceed 100% of Zhuhai Unicizers’ net equity in latest financial statements which were audited or reviewed.

• Note 21: Financing limit for each borrowing company shall not exceed 50% of Panjin Union Materials’ net equity in latest financial statements which were audited or reviewed.

• Note 22: Financing company’s total financing amount limits shall not exceed 100% of Panjin Union Materials’ net equity in latest financial statements which were audited or reviewed.

• Note 23: Financing limit for each borrowing company shall not exceed 50% of Taizhou Union Chemical’s net equity in latest financial statements which were audited or reviewed.

• Note 24: Financing company’s total financing amount limits shall not exceed 100% of Taizhou Union Chemical’s net equity in latest financial statements which were audited or reviewed.

• Note 25: Financing limit for each borrowing company shall not exceed 50% of Panjin Union Logistics’ net equity in latest financial statements which were audited or reviewed.

(Continued)

• 73 -

(Concluded)

Note 26: Financing company’s total financing amount limits shall not exceed 100% of Panjin Union Logistics’ net equity in latest financial statements which were audited or reviewed.

Note 27: Financing limit for each borrowing company shall not exceed 50% of Panjin Union Chemical’s net equity in latest financial statements which were audited or reviewed.

Note 28: Financing company’s total financing amount limits shall not exceed 100% of Panjin Union Chemical’s net equity in latest financial statements which were audited or reviewed

• 74 -

TABLE 2

UPC TECHNOLOGY CORP. AND SUBSIDIARIES

ENDORSEMENTS/GUARANTEES PROVIDED FOR THE YEAR ENDED DECEMBER 31, 2023 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

No. (Note 1)	Endorsement/ Guarantee Provider	Guaranteed Party	Guaranteed Party	Limits on Endorsement/ Guarantee Amount Provided to Each Guaranteed Party	Maximum Balance for the Period	Ending Balance	Amount Actually Drawn	Amount Endorsed/ Guaranteed by Collateralized by Properties	Ratio of Accumulated Endorsement/ Guarantee to Net Equity in Latest Financial **Statements **	Maximum Endorsement/ Guarantee Amount Allowable	Guarantee Provided by Parent Company	Guarantee Provided by Subsidiary	Guarantee Provided to Subsidiaries in Mainland China
		Name	Nature of Relationship (Note 2)
0	The Company	Taizhou Union Plastics Nanchong Unicizers Panjin Union Materials Panjin Union Chemical UPC Chemicals (Malaysia) Union Hong Kong	b b b b b b	$ 15,023,832 (Note 3)	$ 614,100 (US$ 20,000 thousand) 2,861,232 (RMB 660,000 thousand) 1,177,007 (RMB 271,500 thousand) 3,945,032 (RMB 910,000 thousand) 1,535,250 (US$ 50,000 thousand) 707,977 (US$ 15,000 thousand) (EUR 7,281 thousand)	$ 614,100 (US$ 20,000 thousand) 2,774,528 (RMB 640,000 thousand) 1,118,482 (RMB 258,000 thousand) 3,749,948 (RMB 865,000 thousand) 614,100 (US$ 20,000 thousand) 608,374 (US$ 15,000 thousand) (EUR 4,350 thousand)	$ - 453,962 (RMB 104,715 thousand) 341,686 (RMB 78,817 thousand) 2,045,127 (RMB 471,749 thousand) - 224,278 (US$ 2,491 thousand) (EUR 4,350 thousand)	$ - - - - - -	2.04% 9.23% 3.72% 12.48% 2.04% 2.02%	$ 45,071,496 (Note 3)	Y Y Y Y Y Y	N N N N N N	Y Y Y Y N N
1	Zhenjiang Union Chemical	Jiangsu Union Logistics	d	2,208,160 (Note 3)	6,503 (RMB 1,500 thousand)	-	-	-	-	6,624,481 (Note 3)	N	N	Y
2	Panjain Union Materials	Panjin Union Chemical	d	722,871 (Note 3)	52,283 (RMB 12,060 thousand)	-	-	-	-	2,168,613 (Note 3)	N	N	Y
3	Zhongshan Unicizers	Panjin Union Chemical	d	2,980,825 (Note 3)	3,468 (RMB 800 thousand)	-	-	-	-	8,942,474 (Note 3)	Y	N	Y

• Note 1: 0 for the Company. 1 for Zhenjiang Union Chemical. 2 for Panjain Union Materials 3 for Zhongshan Unicizers.

• Note 2: Relationships between the endorsement/guarantee provider and the guaranteed party are as follows:

• a. A company with which it does business.

• b. A Company in which the company directly and indirectly holds more than 50 percent of the voting shares.

• c. A Company that directly and indirectly holds more than 50 percent of the voting shares in the Company.

• d. Companies in which the company holds, directly and indirectly, 90% or more of the voting shares.

• e. The Company fulfills its contractual obligations by providing mutual endorsements/guarantees for another company in the same industry or for joint builders for purposes of undertaking a construction project.

• f. All capital contributing shareholders make endorsements/guarantees for their jointly invested company in proportion to their shareholding percentages.

• g. Companies in the same industry provide among themselves joint and several security for a performance guarantee of a sales contract for pre-construction homes pursuant to the Consumer Protection Act for each other.

• Note 3: The total amount of endorsement or guarantee that the Company, Zhenjiang Union Chemical, Panjain Union Materials and Zhongshan Unicizers are allowed to provide is up to 150% of the net equity of the latest financial statements of the Company, Zhenjiang Union Chemical, Panjain Union Materials and Zhongshan Unicizers which were audited or reviewed. The limits on endorsement or guarantee amount provided to each guaranteed party is up to 50% of the net equity of the latest financial statements of the Company, Zhenjiang Union Chemical, Panjain Union Materials and Zhongshan Unicizers which were audited or reviewed.

• 75 -

TABLE 3

UPC TECHNOLOGY CORP. AND SUBSIDIARIES

MARKETABLE SECURITIES HELD DECEMBER 31, 2023

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

Holding Company Name	Type and Name of Marketable Securities (Note 1)	Relationship with the Company (Note 2)	Financial Statement Account		December 31, 2023	December 31, 2023		Note
				Shares/Units (In Thousands)	Carrying Amount (Note 3)	Percentage of Ownership (%)	Fair Value
The Company UVC WCI TUI	Domestic listed shares Lien Hwa Industrial Holdings Corp. MiTAC Holdings Corporation Domestic unlisted shares Lienhwa United LPG Harbinger Venture Capital Corp. Harbinger VI Venture Capital Corp. Domestic listed shares and emerging market shares ACTi Corporation Visco Vision Inc. Domestic unlisted shares Harbinger III Venture Capital Corp. Harbinger VI Venture Capital Corp. Harbinger VII Venture Capital Corp. Harbinger VIII Venture Capital Corp. Taiwan Mobile Communication INC. Mutual funds Capital Money Market Fund Domestic unlisted shares Lien Yung Investment Corporation Tong Da Investment Corporation Domestic listed shares Getac Technology Corporation Asia Polymer Corporation Taita Chemical Company, Limited Synnex Technology International Corporation Domestic unlisted shares Harbinger Venture Management Co., Ltd. Mitac Incorporated	With the same chairman 〃 The Company is its director With the same chairman With the same chairman With the same chairman With the same chairman 〃	Financial assets at FVTOCI - noncurrent 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 Financial assets at FVTPL - current Financial assets at FVTOCI - noncurrent 〃 Financial assets at FVTOCI - current 〃 〃 〃 Financial assets at FVTOCI - noncurrent 〃	153,290 99,803 4,923 7 3,214 387 123 15 739 5,299 10,950 447 413 9,217 4,848 2,006 14,311 8,855 4,950 863 914	$ 10,224,441 4,446,206 64,390 46 39,466 15,460 26,733 389 9,077 78,897 114,647 2,574 6,852 202,317 160,812 222,666 334,878 145,664 347,490 18,668 63,512	9.68 8.27 17.29 3.35 13.28 1.46 0.20 15.00 3.05 9.33 8.45 1.10 - 19.99 19.99 0.33 2.41 2.23 0.30 19.99 0.22	$ 10,224,441 4,446,206 64,390 46 39,466 15,460 26,733 389 9,077 78,897 114,647 2,574 6,852 202,317 160,812 222,666 334,878 145,664 347,490 18,668 63,512

(Continued)

• 76 -

Holding Company Name	Type and Name of Marketable Securities (Note 1)	Relationship with the Company (Note 2)	Financial Statement Account		December 31, 2023	December 31, 2023		Note
				Shares/Units (In Thousands)	Carrying Amount (Note 3)	Percentage of Ownership (%)	Fair Value
CHL	Foreign unlisted shares Budworth		〃	30	$ 2	3.33	$ 2

Note 1: Marketable Securities in this table are stocks, mutual funds and securities derived from these items under IFRS 9 “Financial Instruments: Recognition and Measurement”.

Note 2: Issuers of financial instruments, which are not related parties, can skip the column.

• Note 3: The carrying amounts of financial instruments measured at fair values are adjusted for fair values less accumulated impairment losses; the carrying amounts of financial instruments not measured at fair values are the original costs or amortized costs less accumulated impairment losses.

Note 4: Refer to Tables 7 and Table 8 for the information of investments in subsidiaries and associates.

(Concluded)

• 77 -

TABLE 4

UPC TECHNOLOGY CORP. AND SUBSIDIARIES

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

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

Buyer/Seller	Related Party	Relationship			Transaction Details	Transaction Details	Abnormal Transaction	Abnormal Transaction	Notes/Trade Receivable (Payable)	Notes/Trade Receivable (Payable)	Note
			Purchase/ Sale	Amount	% of Total	Payment Terms	Unit Price	Payment Terms	Ending Balance	% of Total
The Company Taizhou Union Chemical Zhuhai Unicizers Zhenjiang Union Chemical Panjin Union Chemical UPC Chemicals (Malaysia) Union Hong Kong	Zhenjiang Union Chemical Taizhou Union Chemical Panjin Union Chemical Zhenjiang Union Chemical Taizhou Union Plastics Nanchong Unicizers The Company Zhongshan Unicizers Zhenjiang Union Chemical Taizhou Union Chemical The Company Taizhou Union Chemical The Company Zhenjiang Union Chemical Zhongshan Unicizers Zhuhai Unicizers UPCM Chemicals (Thailand) UPCM Chemicals (Vietnam) Zhongshan Unicizers Taizhou Union Chemical Zhuhai Unicizers UPC Chemicals (Malaysia)	Entity that the Company directly or indirectly invests in 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 Entity that the Company directly or indirectly invests in 〃 〃 〃 〃 〃	Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale Sale	$ (442,360) (451,343) (1,404,286) (172,169) (242,867) (463,482) (472,654) (1,452,238) (277,038) (142,148) (114,639) (660,856) (140,901) (1,579,402) (186,273) (237,225) (980,059) (990,168) (105,013) (5,668,959) (1,965,815) (2,832,473)	(8.00) (8.16) (25.39) (1.67) (2.36) (4.49) (3.35) (10.28) (1.96) (1.01) (0.79) (4.54) (1.20) (13.46) (1.59) (2.02) (17.23) (17.41) (0.99) (53.45) (18.54) (26.71)	45 days, may be adjusted depending on the situation 45 days, may be adjusted depending on the situation 45 days, may be adjusted depending on the situation 30 days, may be adjusted depending on the situation 30 days, may be adjusted depending on the situation 30 days, may be adjusted depending on the situation 45 days, may be adjusted depending on the situation 30 days, may be adjusted depending on the situation 30 days, may be adjusted depending on the situation 30 days, may be adjusted depending on the situation 45 days, may be adjusted depending on the situation 30 days, may be adjusted depending on the situation 45 days, may be adjusted depending on the situation 30 days, may be adjusted depending on the situation 30 days, may be adjusted depending on the situation 30 days, may be adjusted depending on the situation 90 days, may be adjusted depending on the situation 90 days, may be adjusted depending on the situation 120 days, may be adjusted depending on the situation 120 days, may be adjusted depending on the situation 120 days, may be adjusted depending on the situation 120 days, may be adjusted depending on the situation			$ 51,836 105,365 151,331 44,139 - 44,139 - 140,914 73,536 25,943 5,845 - - 497,465 110,129 57,161 239,380 262,714 194 606,695 667,593 458,511	8.71 17.71 25.44 3.86 - 3.86 - 10.41 5.43 1.92 0.68 - - 69.39 15.36 7.97 28.04 30.77 0.01 34.56 38.03 26.12

• 78 -

TABLE 5

UPC TECHNOLOGY CORP. AND SUBSIDIARIES

RECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL DECEMBER 31, 2023

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

Company Name	Related Party	Relationship	Ending Balance	Turnover Rate	Overdue	Overdue	Amount Received in Subsequent Period (Note)	Allowance for Impairment Loss
					Amount	Actions Taken
The Company UPC Chemicals (Malaysia) Union Hong Kong Panjin Union Chemical Taizhou Union Chemical Zhuhai Unicizers CHL Zhongshan Unicizers Zhenjiang Union Chemical Taizhou Union Plastics Jiangsu Union Logistics Guangdong Union Logistics	Panjin Union Chemical Taizhou Union Chemical UPCM Trading (Thailand) UPCM Trading (Vietnam) Taizhou Union Chemical Zhuhai Unicizers UPC Chemicals (Malaysia) Zhenjiang Union Chemical Zhongshan Unicizers Nanchong Unicizers Zhongshan Unicizers Union Hong Kong Zhuhai Unicizers Panjin Union Chemical Panjin Union Logistics ZhenJiang Union Torch Estate Panjin Union Materials Panjin Union Chemical Panjin Union Logistics Panjin Union Materials Nanchong Unicizers Taizhou Union Chemical Panjin Union Chemical Zhuhai Unicizers	Entity that the Company directly or indirectly invests in 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃	Trade receivables $ 151,331 Trade receivables 105,365 Trade receivables 239,380 Trade receivables 262,714 Trade receivables 606,695 Trade receivables 667,593 Trade receivables 458,511 Trade and notes receivables 497,465 Trade and notes receivables 110,129 Trade and notes receivables 163,111 Trade and notes receivables 140,914 Other receivables 251,781 Other receivables 423,090 Other receivables 498,738 Other receivables 173,408 Other receivables 741,319 Other receivables 151,732 Other receivables 1,343,912 Other receivables 260,112 Other receivables 884,381 Other receivables 975,420 Other receivables 174,957 Other receivables 166,905 Other receivables 130,056	8.86 7.53 5.19 4.42 11.53 4.80 6.13 2.77 3.38 3.83 16.07 - - - - - - - - - - - - -	$ - - - - - - - - - - - - - - - - - - - - - - - -		$ 100,269 105,365 214,483 127,433 606,695 471,621 422,895 497,465 110,129 163,111 113,169 61,410 160,402 325,140 - - - 310,000 60,000 204,000 225,000 40,357 - 8,670	$ - - - - - - - - - - - - - - - - - - - - - - - -

Note: It was the amount received as of March 6, 2024.

• 79 -

TABLE 6

UPC TECHNOLOGY CORP. AND SUBSIDIARIES

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

(In Thousands of New Taiwan Dollars)

No. (Note 1)	Company Name	Counterparty	Relationship (Note 2)			Transaction Details
				Financial Statement Account	Amount (Notes 4 and 5)	Payment Terms	% of Total Sales or Total Assets (Note 3)
0	The Company	Taizhou Union Chemical Taizhou Union Chemical Zhenjiang Union Chemical Panjing Union Chemical Panjing Union Chemical	a a a a a	Sales Trade receivables from related parties Sales Trade receivables from related parties Sales	$ 451,343 105,365 442,360 151,331 1,404,286	The terms of transaction are the same as general business practices The terms of transaction are the same as general business practices The terms of transaction are the same as general business practices The terms of transaction are the same as general business practices The terms of transaction are the same as general business practices	1 - 1 - 2
1	Zhongshan Unicizers	Zhuhai Unicizers	c	Other receivables from related parties	423,090	The terms of transaction are the same as general business practices	1
2	Taizhou Union Chemical	Nanchong Unicizers Nanchong Unicizers Taizhou Union Plastics Taizhou Union Plastics Zhenjiang Union Chemical	c c c c c	Sales Trade and notes receivables from related parties Other revenue Sales Sales	463,482 163,111 268,535 242,867 172,169	The terms of transaction are the same as general business practices The terms of transaction are the same as general business practices The terms of transaction are the same as general business practices The terms of transaction are the same as general business practices The terms of transaction are the same as general business practices	1 - - - -
3	Union Hong Kong	Taizhou Union Chemical UPC Chemicals (Malaysia) Taizhou Union Chemical UPC Chemicals (Malaysia) Zhuhai Unicizers Zhuhai Unicizers Zhongshan Unicizers	c c c c c c c	Trade receivables from related parties Trade receivables from related parties Sales Sales Trade receivables from related parties Sales Sales	606,695 458,511 5,668,959 2,832,473 667,593 1,965,815 105,013	The terms of transaction are the same as general business practices The terms of transaction are the same as general business practices The terms of transaction are the same as general business practices The terms of transaction are the same as general business practices The terms of transaction are the same as general business practices The terms of transaction are the same as general business practices The terms of transaction are the same as general business practices	1 1 8 4 1 3 -
4	Panjing Union Chemical	Zhenjiang Union Chemical The Company Zhongshan Unicizers Zhongshan Unicizers Zhenjiang Union Chemical Zhuhai Unicizers	c b c c c c	Trade and notes receivables from related parties Sales Sales Trade and notes receivables from related parties Sales Sales	497,465 140,901 186,273 110,129 1,579,402 237,225	The terms of transaction are the same as general business practices The terms of transaction are the same as general business practices The terms of transaction are the same as general business practices The terms of transaction are the same as general business practices The terms of transaction are the same as general business practices The terms of transaction are the same as general business practices	1 - - - 2 -
5	Taizhou Union Plastics	Panjing Union Chemical Panjin Union Logistics Panjin Union Materials Nanchong Unicizers Taizhou Union Chemical	c c c c c	Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties	1,343,912 260,112 884,381 975,420 174,957	The terms of transaction are the same as general business practices The terms of transaction are the same as general business practices The terms of transaction are the same as general business practices The terms of transaction are the same as general business practices The terms of transaction are the same as general business practices	2 - 2 2 -
							(Continued)

• 80 -

No. (Note 1)	Company Name	Counterparty	Relationship (Note 2)			Transaction Details
				Financial Statement Account	Amount (Notes 4 and 5)	Payment Terms	% of Total Sales or Total Assets (Note 3)
6	CHL	Union Hong Kong	c	Other receivables - related parties	$ 251,781	The terms of transaction are the same as general business practices	-
7	Guangdong Union Logistics	Zhuhai Unicizers	c	Other receivables - related parties	130,056	The terms of transaction are the same as general business practices	-
8	Jiangsu Union Logistics	Panjing Union Chemical	c	Other receivables - related parties	166,905	The terms of transaction are the same as general business practices	-
9	Zhuhai Unicizers	Zhongshan Unicizers The Company Zhongshan Unicizers Zhenjiang Union Chemical Taizhou Union Chemical	c b c c c	Sales Sales Trade and notes receivables from related parties Sales Sales	1,452,238 472,654 140,914 277,038 142,148	The terms of transaction are the same as general business practices The terms of transaction are the same as general business practices The terms of transaction are the same as general business practices The terms of transaction are the same as general business practices The terms of transaction are the same as general business practices	2 1 - - -
10	Zhenjiang Union Chemical	Panjing Union Chemical Panjin Union Logistics ZhenJiang Union Torch Estate Panjin Union Materials The Company Taizhou Union Chemical	c c c c b c	Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Sales Sales	498,738 173,408 741,319 151,732 114,639 660,856	The terms of transaction are the same as general business practices The terms of transaction are the same as general business practices The terms of transaction are the same as general business practices The terms of transaction are the same as general business practices The terms of transaction are the same as general business practices The terms of transaction are the same as general business practices	1 - 1 - - 1
11	UPC Chemicals (Malaysia)	UPCM Chemicals (Thailand) UPCM Chemicals (Vietnam) UPCM Chemicals (Thailand) UPCM Chemicals (Vietnam)	c c c c	Sales Sales Trade receivables from related parties Trade receivables from related parties	980,059 990,168 239,380 262,714	The terms of transaction are the same as general business practices The terms of transaction are the same as general business practices The terms of transaction are the same as general business practices The terms of transaction are the same as general business practices	1 1 - -

Note 1: The Business information between the Company and subsidiaries should be indicated in the number field, the method of filling in the number is as follows:

• a. Parent fill in 0.

• b. Subsidiaries fill from 1, respectively.

• Note 2: The relationship with the counterparty includes three types as follows:

• a. Parent to subsidiary.

• b. Subsidiary to parent.

• c. Between subsidiaries.

• Note 3: The calculation of transaction percentage as follow: For balance sheet accounts, calculate by how much the ending balance account consolidated asset for; for income statement accounts, calculate by how much the accumulated amount account consolidated revenue for.

Note 4: The transaction amount’s threshold of disclosure is above $100,000 thousand.

Note 5: It has been written off when preparing consolidated financial report.

(Concluded)

• 81 -

TABLE 7

UPC TECHNOLOGY CORP. AND SUBSIDIARIES

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

Investor Company	Investee Company	Location	Main Businesses and Products	Original Investment Amount	Original Investment Amount	As of December 31, 2023	As of December 31, 2023	As of December 31, 2023	Net Income (Loss) of the Investee	Share of Profit (Loss)	Note
				December 31, 2023	December 31, 2022	Number of Shares (In Thousands)	%	Carrying Amount
The Company CHL	CHL Glory Ace UVC WCI TUI UPC Chemicals (Malaysia) Star Bright Goldendust Natural Magic Props Pure Fantasy Modern Vantage Charmon Linkhope Reachworld Daywinn Dragonoble Pagerise Greaterise Granfaith Faithouse Union Hong Kong Harbinger Ruyi	Tortola, British Virgin Islands Tortola, British Virgin Islands Tiding Blvd., Taipei City Nangang Rd., Taipei City Minsheng E. Rd., Taipei City Selangeor, Malaysia Tortola, British Virgin Islands 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 Tsimshatsui Kowloon, Hong Kong Tortola, British Virgin Islands	Investment Trading Investment 〃 〃 Manufacturing and selling of PLASTICIZERS and PA Investment 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 Trading Investment	$ 13,127,287 128,451 250,013 160,000 453,525 1,838,838 1,348 3,070,575 3,278,180 919,533 217,544 763,540 972,950 88,755 87,960 711,773 1,494,521 965,857 1,502,187 1,072,934 (Note 3) (Note 3) 913,293 30,465	$ 13,127,287 128,451 250,013 160,000 453,525 1,838,838 1,348 3,070,575 3,278,180 919,533 217,544 763,540 972,950 88,755 87,960 711,773 1,494,521 965,857 1,502,187 922,434 150,500 913,293 30,465	433,310 605 22,701 16,000 78,719 163,427 51 99,208 105,400 28,140 6,331 25,334 31,637 3,000 3,000 23,380 50,670 32,000 49,000 35,351 - 232,409 1,000	100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 - 100.00 28.57	$ 22,734,822 607,239 352,821 405,586 1,444,613 1,923,307 337,114 6,575,729 4,413,038 2,055,402 368,023 877,974 1,273,033 254,166 193,051 1,517,633 470,065 993,365 1,200,398 365,566 - 1,163,445 23,498	$ (676,666) 7,573 24,802 22,839 46,128 163,879 (16,213) (511,238) 289,517 17,696 (48,785) 89,166 (870) (729) 693 99,530 (206,780) (13,297) (250,370) (145,072) - 13,902 2,419	$ (676,666) 7,573 24,802 22,839 46,128 163,879 - - - - - - - - - - - - - - - - -	Subsidiary 〃 〃 〃 〃 〃 Subsidiary 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 Subsidiary’s investee company under the equity method

(Continued)

• 82 -

Investor Company	Investee Company	Location	Main Businesses and Products	Original Investment Amount	Original Investment Amount	As of December 31, 2023	As of December 31, 2023	As of December 31, 2023	Net Income (Loss) of the Investee	Share of Profit (Loss)	Note
				December 31, 2023	December 31, 2022	Number of Shares (In Thousands)	%	Carrying Amount
Star Bright UPC Chemicals (Malaysia)	Logical Path Ltd. UPCM Trading (Thailand) UPCM Trading (Vietnam)	Tsimshatsui Kowloon, Hong Kong Bangkok, Thailand Ho Chi Minh City Vietnam	Investment Trading Trading	$ 37 28,905 17,867	$ 37 28,905 17,867	10 30,000 (Note 2)	100.00 100.00 100.00	$ 337,204 28,815 15,679	$ (16,113) 20,101 3,503	$ - - -	Subsidiary Subsidiary Subsidiary

Note 1: Please refer to Table 8 for information of investees of Mainland China.

Note 2: Limited company.

Note 3: Granfaith acquired Faithouse in May 2023, and Faithouse was dissolved after the merger.

(Concluded)

• 83 -

TABLE 8

UPC TECHNOLOGY CORP. AND SUBSIDIARIES

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

Investor Company	Investee Company	Main Businesses and Products	Total Amount of Paid-in Capital	Method of Investment (Note 1)	Accumulated Outflow of Investment from Taiwan as of January 1, 2023	Investment Flows	Investment Flows	Accumulated Outflow of Investment from Taiwan as of December 31, 2023	Percentage of Ownership (%)	Net Income (Loss) of the Investee Company	Share of Profits/Losses (Note 2)	Carrying Amount as of December 31, 2023	Accumulated Repatriation of Investment Income as of December 31, 2023
						Outflow	Inflow
Goldendust Zhongshan Unicizers, Logical Path Ltd, Goldendust and Magic Props Zhongshan Unicizers, Logical Path Ltd, Pure Fantasy and Goldendust Charmon and Zhongshan Unicizers Modern Vantage Natural and Daywinn Linkhope Reachworld Dragonoble and Zhongshan Unicizers Zhenjiang Union Chemical Pagerise Greaterise Granfaith and Zhongshan Unicizers Taizhou Union Plastics	Zhongshan Unicizers Zhenjiang Union Chemical Zhuhai Unicizers Taizhou Union Chemical Taizhou Union Logistics Taizhou Union Plastics Jiangsu Union Logistics Guangdong Union Logistics Panjin Union Chemical ZhenJiang Union Torch Estate Panjin Union Logistics Panjin Union Materials Nanchong Unicizers Panjin Union Plastics	Manufacturing and selling of PLASTICIZERS and PA Manufacturing and selling of PLASTICIZERS and PA Manufacturing and selling of PLASTICIZERS, PA and MA Manufacturing and selling of PLASTICIZERS and PA Warehousing and storage services Manufacturing and selling of PVC Logistics Logistics Manufacturing and selling of PLASTICIZERS and PA Real Estate Management Warehousing and storage services Manufacturing and selling of MA and related derivatives Manufacturing and selling of PLASTICIZERS and PA Manufacturing and selling of VCM	US$ 108,080 thousand US$ 77,340 thousand US$ 35,500 thousand US$ 63,400 thousand US$ 23,700 thousand US$ 168,780 thousand US$ 3,000 thousand US$ 3,000 thousand US$ 105,000 thousand RMB 60,000 thousand US$ 32,000 thousand US$ 49,000 thousand US$ 67,000 thousand RMB 4,000 thousand	b. b. b. b. b. b. b. b. b. c. b. b. b. c.	$ 2,484,411 543,823 - 466,785 648,157 3,068,081 88,755 87,960 1,494,521 - 965,857 1,502,187 922,434 -	$ - - - - - - - - - - - - - -	$ - - - - - - - - - - - - - -	$ 2,484,411 543,823 - 466,785 648,157 3,068,081 88,755 87,960 1,494,521 - 965,857 1,502,187 922,434 -	100 100 100 100 100 100 100 100 100 100 100 100 100 100	$ (442,715) 42,516 (274,345) (1,601) 89,238 389,254 (649) 772 (428,245) (9,724) (13,218) (250,261) (258,555) 121	$ (442,715) b.2) 42,516 b.2) (274,345) b.2) (1,601) b.2) 89,238 b.2) 389,254 b.2) (649) b.2) 772 b.2) (428,245) b.2) (9,724) b.2) (13,218) b.2) (250,261) b.2) (258,555) b.2) 121 b.2)	$ 5,864,836 4,419,606 1,972,031 2,536,947 878,044 5,930,872 254,244 193,127 1,017,600 222,314 993,443 1,200,506 617,549 17,591	$ - - - - - - - - - - - - - -
													(Continued)

• 84 -

(Concluded)

Accumulated Outward Remittance for Investment in Mainland China as of December 31, 2023	Investment Amount Authorized by Investment Commission, MOEA	Upper Limit on Amount of Investment Stipulated by the Investment Commission, MOEA
$12,272,971 (Note 3)	$15,205,977 (US$495,228 thousand) (Note 4)	(Note 5)

• Note 1. The investment types are as follows:

• a. Direct investment.

• b. Indirect investment in Mainland China through a subsidiary in a third region (refer to the table above for investor companies in the third region).

• c. Others - direct investment from Zhenjiang Union Chemical and Taizhou Union Plastics.

• Note 2. In the column of investment income or loss as of December 31, 2023:

• a. If there is no investment income or loss yet resulting from preparation, please indicate.

• b. The basis of recognition of investment income or loss as follow:

  • 1) Financial statements that were audited by international accounting firms which are in a cooperation with R.O.C. accounting firm.

  • 2) Financial statements that were audited by the CPAs of the parent company in Taiwan.

  • 3) Others: Financial statements that were not audited.

Note 3. Excluded (1) the investment amount of $934,394 thousand due to the remittance of funds from Taiwan outward to regions of Mainland China in the prior years, and the investor company liquidates after the end of operation; (2) Investment of $3,502,208 thousand that is remittance of company - owned funds from the third region of Mainland China.

• Note 4. The exchange rate on December 31, 2023 is US$1=NT$30.705. Capitalization of retained earnings is not included.

Note 5. As the Company has been qualified with operations headquarters certification issued by Industrial Development Bureau on September 13, 2021, the amount of investment in Mainland China is not limited.

• 85 -

TABLE 9

UPC TECHNOLOGY CORP. AND SUBSIDIARIES

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

FOR THE YEAR ENDED DECEMBER 31, 2023

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

1. Sales transactions

Price and Payment Terms Investee Company Activities in the Third Area Comparison with Normal Transactions Panjing Union Chemical - The terms of transaction are the same as general business practices Taizhou Union Chemical - 〃 Zhenjiang Union Chemical - 〃 Purchase transactions Price and Payment Terms Investee Company Activities in the Third Area Comparison with Normal Transactions Zhuhai Unicizers - The terms of transaction are the same as general business practices Panjing Union Chemical - 〃 Zhenjiang Union Chemical - 〃	Sales	Unrealized % Gain on Sale 25.39 $ - 8.16 - 8.00 - Purchases Price % $ 472,654 9.30 140,901 2.77 114,639 2.26	Ending Notes/Trade Receivable
	Price $ 1,404,286 451,343 442,360		Balance % $ 151,331 25.44 105,365 17.71 51,836 8.71 Ending Notes/Trade Payable
			Balance % $ - - - - 5,845 0.99

1. Purchase transactions

2. Transactions of endorsements/guarantees (refer to Note 34 and Table 2)

3. 86 -

TABLE 10

UPC TECHNOLOGY CORP.

INFORMATION OF MAJOR SHAREHOLDERS DECEMBER 31, 2023

Name of Major Shareholder	Shares	Shares
	Number of Shares	Percentage of Ownership (%)
Lien Hwa Industrial Holdings Corp. Synnex Technology International Corporation	424,880,973 68,992,033	31.12 5.05

• Note 1: The information of major shareholders presented in this table is provided based on the number of ordinary shares and preferred shares held by shareholders with ownership of 5% or greater, that have been issued without physical registration (including treasury shares) by the Company as of the last business day for the current quarter. The share capital in the consolidated financial statements may differ from the actual number of shares that have been issued without physical registration because of different preparation basis.

• Note 2: Percentage of Ownership (%) = Number of shares owned/Total number of shares that have been issued without physical registration.

• Note 3: The total number of shares that have been issued without physical registration (including treasury shares) is 1,364,924,607 shares.

• 87 -