UPC - Audit Report / Information 2022

UPC Technology Corp.

Financial Statements for the Years Ended December 31, 2022 and 2021 and Independent Auditors’ Report

INDEPENDENT AUDITORS’ REPORT

The Board of Directors and Stockholders UPC Technology Corp.

Opinion

We have audited the accompanying financial statements of UPC Technology Corp. (the “Company”), which comprise the balance sheets as of December 31, 2022 and 2021, and the statements of comprehensive income, changes in equity and cash flows for the years then ended, and the notes to the financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2022 and 2021, and its financial performance and its cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by 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 Financial Statements section of our report. We are independent of the Company in accordance with The Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements for the year ended December 31, 2022. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

The key audit matter of the Company’s financial statements for the year ended December 31, 2022 is described as follows:

Recognition of Operating Revenue

The Company’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 (l) of the financial statements.

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

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

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

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

Auditors’ Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the 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 financial statements.

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

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

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

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements for the year ended December 31, 2022 and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

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

Deloitte & Touche Taipei, Taiwan Republic of China

March 15, 2023

Notice to Readers

The accompanying financial statements are intended only to present the 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 financial statements are those generally applied in the Republic of China.

For the convenience of readers, the independent auditors’ report and the accompanying 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 financial statements shall prevail.

UPC TECHNOLOGY CORP.

BALANCE SHEETS DECEMBER 31, 2022 AND 2021 (In Thousands of New Taiwan Dollars)

ASSETS CURRENT ASSETS Cash (Note 6) Notes receivable (Note 8) Trade receivables (Notes 8 and 27) Other receivables (Note 27) Current tax assets (Note 22) Inventories (Note 9) Other current assets (Note 13) Total current assets NON-CURRENT ASSETS Financial assets at fair value through other comprehensive income (Note 7) Investments accounted for using the equity method (Note 10) Property, plant and equipment (Note 11) Right-of-use assets (Note 12) Deferred income tax assets (Note 22) Other non-current assets (Notes 13 and 27) Total non-current assets TOTAL LIABILITIES AND EQUITY CURRENT LIABILITIES Notes payable (Note 16) Trade payables (Notes 16 and 27) Other payables (Note 17) Current tax liabilities (Note 22) Lease liabilities (Notes 12 and 27) Current portion of long-term liabilities (Notes 14 and 15) Other current liabilities (Note 17) Total current liabilities NON-CURRENT LIABILITIES Bonds payable (Note 15) Long-term borrowings (Note 14) Provisions (Note 18) Deferred tax liabilities (Note 22) Lease liabilities (Notes 12 and 27) Net defined benefit liabilities (Note 19) Guarantee deposits received (Note 27) Total non-current liabilities Total liabilities EQUITY (Note 20) 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		2022 Amount % $ 157,711 1 23,042 - 499,123 1 3,704 - 7,857 - 1,217,916 3 73,027 - 1,982,380 5 10,223,220 24 28,178,718 66 2,099,488 5 11,812 - 79,330 - 53,423 - 40,645,991 95 $ 42,628,371 100 $ 1,000 - 350,897 1 158,330 1 49,791 - 10,570 - 5,995,566 14 49,781 - 6,615,935 16 2,995,345 7 6,430,000 15 12,349 - 217,298 - 1,569 - 235,890 1 13,783 - 9,906,234 23 16,522,169 39 13,547,626 32 4,288 - 13,551,914 32 1,387,955 3 2,838,651 7 341,773 1 2,202,427 5 5,382,851 13 6,222,423 14 (438,941) (1) 26,106,202 61 $ 42,628,371 100		2021
				Amount % $ 307,883 1 32,014 - 633,669 1 10,549 - 7,835 - 1,587,220 4 93,058 - 2,672,228 6 12,052,314 26 29,108,413 63 2,018,255 5 19,593 - 97,840 - 68,021 - 43,364,436 94 $ 46,036,664 100 $ - - 706,766 2 174,759 - 32,000 - 10,514 - 300,000 1 21,690 - 1,245,729 3 5,991,133 13 8,400,000 18 10,363 - 217,308 - 9,508 - 252,480 1 13,406 - 14,894,198 32 16,139,927 35 13,471,206 29 6,559 - 13,477,765 29 1,388,431 3 2,581,282 5 341,773 1 4,914,231 11 7,837,286 17 7,632,196 17 (438,941) (1) 29,896,737 65 $ 46,036,664 100

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

UPC TECHNOLOGY CORP.

STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021 (In Thousands of New Taiwan Dollars, Except (Losses) Earnings Per Share)

SALES (Note 27) COST OF GOODS SOLD (Notes 9, 21 and 27) GROSS PROFIT OPERATING EXPENSES (Notes 21 and 27) Selling and marketing expenses General and administrative expenses Expected credit (gain) loss Total operating expenses LOSS FROM OPERATIONS NON-OPERATING INCOME AND EXPENSES Share of profit or loss of subsidiaries accounted for using the equity method Interest income (Note 21) Other income (Notes 21 and 27) Other gains and losses (Note 21) Finance costs (Note 21) Total non-operating income and expenses (LOSS) PROFIT BEFORE INCOME TAX INCOME TAX EXPENSE (Note 22) NET (LOSS) PROFIT OTHER COMPREHENSIVE INCOME (Notes 20 and 21) Items that will not be reclassified subsequently to profit or loss: Remeasurement of defined benefit plans Unrealized (loss) gain on investments in equity instruments at fair value through other comprehensive income		2022 Amount % $ 5,503,668 100 5,268,653 96 235,015 4 175,835 3 236,589 4 (2,991) - 409,433 7 (174,418) (3) (1,612,488) (29) 299 - 795,175 14 (17,621) - (171,532) (3) (1,006,167) (18) (1,180,585) (21) 55,639 1 (1,236,224) (22) 18,729 - (1,829,094) (33)		2021
				Amount % $ 5,686,456 100 5,254,978 92 431,478 8 158,930 3 275,868 5 295 - 435,093 8 (3,615) - 2,084,292 37 25 - 473,635 8 (252,822) (5) (126,285) (2) 2,178,845 38 2,175,230 38 27,768 - 2,147,462 38 (24,602) - 3,723,068 65 (Continued)

UPC TECHNOLOGY CORP.

STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021 (In Thousands of New Taiwan Dollars, Except (Losses) Earnings Per Share)

Share of other comprehensive (loss) income of subsidiaries accounted for using the equity method Income tax relating to items that will not be reclassified subsequently to profit or loss Items that may be reclassified subsequently to profit or loss: Exchange differences on translating the financial statements of foreign operations Share of other comprehensive income (loss) of subsidiaries accounted for using the equity method Income tax relating to items that may be reclassified subsequently to profit or loss Other comprehensive (loss) income for the year, net of income tax TOTAL COMPREHENSIVE (LOSS) INCOME FOR THE YEAR (LOSSES) EARNINGS PER SHARE (Note 23) Basic Diluted		2022 Amount % $ (253,666) (5) (3,750) - (2,067,781) (38) 762,218 14 1,250 - (11,840) - 751,628 14 (1,316,153) (24) $ (2,552,377) (46) $ (0.94)		2021
				Amount % $ 444,009 8 4,920 - 4,147,395 73 (259,585) (5) (518) - 3,130 - (256,973) (5) 3,890,422 68 $ 6,037,884 106 $ 1.66 $ 1.62




				$

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

(Concluded)

UPC TECHNOLOGY CORP.

STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021 (In Thousands of New Taiwan Dollars)

	Share Capital	Retained Earnings	Other Equity
			Exchange Differences on Unrealized Gain (Loss) on Financial Assets at Fair Value Through Translating Other Foreign Operations Comprehensive Income $ (896,268 ) $ 5,064,268 - - - - - - - - (256,973) 4,167,077 (256,973) 4,167,077 - - - - - - - (445,908) (1,153,241 ) 8,785,437 - - - - - - - - 751,628 (2,082,760) 751,628 (2,082,760) - - - - - - - (78,641) $ (401,613) $ 6,624,036
Ordinary Shares $ 13,323,476 - - - - - - 147,730 - - - 13,471,206 - - - - - - 76,420 - - - $ 13,547,626	Capital Collected in Advance $ - - - - - - - 6,559 - - - 6,559 - - - - - - (6,559 ) 4,288 - - $ 4,288
		Legal Reserve Special Reserve Unappropriated Earnings $ 2,339,154 $ 341,773 $ 3,875,019 242,128 - (242,128 ) - - (1,292,348 ) - - - - - 2,147,462 - - (19,682) - - 2,127,780 - - - - - - - - - - - 445,908 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

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

UPC TECHNOLOGY CORP.

STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021 (In Thousands of New Taiwan Dollars)

CASH FLOWS FROM OPERATING ACTIVITIES (Loss) income before income tax Adjustments for: Depreciation expense Amortization expense Expected credit (gain) loss recognized on trade receivables Finance costs Interest income Dividend income Compensation costs of employee share-based payment Share of profit or loss of subsidiaries accounted for using the equity method (Gain) loss on disposal of property, plant and equipment Write-down of inventories Changes in operating assets and liabilities: Notes receivable Trade receivables Other receivables Inventories Other current assets Notes payable Trade payables Other payables Provisions Other current liabilities Net defined benefit liabilities Cash generated from (used in) operations Interest received Income tax paid Net cash generated from (used in) operating activities CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from capital reduction of financial assets at fair value through other comprehensive income Increase in investment for using the equity method Proceeds from capital reduction of subsidiaries accounted for using the equity method Purchase of property, plant and equipment Proceeds from disposal of property, plant and equipment Increase in refundable deposits Decrease in refundable deposits	2022 $ (1,180,585) 148,672 27,569 (2,991) 171,532 (299) (449,283) 9,342 1,612,488 (494) 4,581 9,141 137,664 6,845 364,723 20,031 1,000 (355,869) (42,424) 1,986 28,091 2,139 513,859 299 (34,960) 479,198 - (2,448,280) 1,838,838 (226,654) 1,156 (1,492) 633	2021 $ 2,175,230 121,786 28,596 295 126,285 (25) (314,750) 45,445 (2,084,292) 6,285 2,495 13,016 (270,670) (5,901) (770,544) (59,231) - 424,250 (44,829) 2,162 (11,127) 1,083 (614,441) 25 (17,700) (632,116) 5,311 (277,898) - (267,228) 350 (4,824) 4,607 (Continued)

UPC TECHNOLOGY CORP.

STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021 (In Thousands of New Taiwan Dollars)

Increase in other non-current assets Dividends received Net cash generated from investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issuance of bonds Proceeds from long-term borrowings Repayments of long-term borrowings Increase in guarantee deposits received Decrease in guarantee deposits received Repayment of the principal portion of lease liabilities Cash dividends paid Proceeds from exercise of employee share options Proceeds from treasury shares transferred to employees Interest paid Net cash (used in) generated from financing activities NET (DECREASE) INCREASE IN CASH CASH AT THE BEGINNING OF THE YEAR CASH AT THE END OF THE YEAR	2022 $ (7,454) 885,734 42,481 2,994,908 35,690,500 (37,960,500) 405 (28) (10,701) (1,311,831) 64,035 - (138,639) (671,851) (150,172) 307,883 $ 157,711	2021 $ (31,723) 602,145 30,740 - 39,209,000 (37,159,000) 26 (10) (10,516) (1,292,348) 138,039 12,431 (121,266) 776,356 174,980 132,903 $ 307,883

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

(Concluded)

NOTES TO FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021 (In Thousands of New Taiwan Dollars, Except as Stated Otherwise)

UPC TECHNOLOGY CORP.

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

2. APPROVAL OF FINANCIAL STATEMENTS

The financial statements were approved by the board of directors on March 6, 2023.

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 “IFRSs”) endorsed and issued into effect by the Financial Supervisory Commission (FSC)

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

b. The IFRSs endorsed by the FSC for application starting from 2023

Effective Date New, Amended and Revised Standards and Interpretations Announced by IASB Amendments to IAS 1 “Disclosure of Accounting Policies” January 1, 2023 (Note 1) Amendments to IAS 8 “Definition of Accounting Estimates” January 1, 2023 (Note 2) Amendments to IAS 12 “Deferred Tax related to Assets and January 1, 2023 (Note 3) Liabilities arising from a Single Transaction”

Note 1: The amendments will be applied prospectively for annual reporting periods beginning on or after January 1, 2023.
Note 2: The amendments will be applicable to changes in accounting estimates and changes in accounting policies that occur on or after the beginning of the annual reporting period beginning on or after January 1, 2023
Note 3: Except for deferred taxes that were recognized on January 1, 2022 for temporary differences associated with leases and decommissioning obligations, the amendments were applied prospectively to transactions that occur on or after January 1, 2022.

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

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

New, Amended and Revised Standards and Interpretations

Effective Date 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” Amendments to IFRS 16 “Leases Liability in a Sale and Leaseback” January 1, 2024 (Note 2) 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 1 “Classification of Liabilities as Current or January 1, 2024 Non-current” Amendments to IAS 1 “Non-current Liabilities with Covenants” January 1, 2024

Note 1: Unless stated otherwise, the above IFRSs are effective for annual reporting periods beginning on or after their respective effective dates.
Note 2: A seller-lessee shall apply the Amendments to IFRS 16 retrospectively to sale and leaseback transactions entered into after the date of initial application of IFRS 16.

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

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a. Statement of compliance

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

b. Basis of preparation

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

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

1) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities;
2) Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for 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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When preparing these parent company only financial statements, the Company used the equity method to account for its investments in subsidiaries. In order for the amounts of the net profit for the year, other comprehensive income for the year and total equity in the parent company only financial statements to be the same as the amounts attributable to the owners of the Company in its consolidated financial statements, adjustments arising from the differences in accounting treatments between the parent company only basis and the consolidated basis were made to investments accounted for using the equity method, the share of profit or loss of subsidiaries, the share of other comprehensive income of subsidiaries in these parent company only financial statements.

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

Current assets include:

1) Assets held primarily for the purpose of trading;
2) Assets expected to be realized within 12 months; 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 Company does not have an unconditional right to defer settlement for at least 12 months after the reporting period.

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

d. Foreign currencies

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

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

Non-monetary items measured at fair value that are denominated in foreign currencies are 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 financial statements of the Company, the functional currencies of the Company’s foreign operations 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, expect for, translated at the exchange rates the day of transaction when the exchange rate fluctuates widely. The resulting currency translation differences are recognized in other comprehensive income.

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e. Inventories

Inventories consist of merchandise inventories, raw materials, supplies, finished goods, semi-finished goods and work in progress. 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.

f. Investments in subsidiaries

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

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

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

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

When the Company’s share of losses of a subsidiary equals or exceeds its interest in that subsidiary (which includes any carrying amount of the investment accounted for using the equity method and long-term interest that in substance, from part of the Company’s net investment in the subsidiary), the Company continues recognized its share of further losses.

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

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

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

g. Property, plant and equipment

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

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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.

h. 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.

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

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

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.

j. Financial instruments

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

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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.

a) Measurement categories

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

i. 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, notes receivables, trade receivables, and other receivables at amortized cost, 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;
iii) It is becoming probable that the borrower will enter bankruptcy or undergo a financial reorganization; or
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iv) The disappearance of an active market for that financial asset because of financial difficulties.
ii. Investments in equity instruments at FVTOCI

On initial recognition, the Company 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 Company’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 Company recognizes a loss allowance for expected credit losses on financial assets at amortized cost (including trade receivables).

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

Expected credit losses reflect the weighted average of credit losses with the respective risks of 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 Company determines that the following situations indicate that a financial asset is in default (without taking into account any collateral held by the Company):

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 Company has reasonable and corroborative information to support a more lagged default criterion.

The impairment loss of all financial assets is recognized in profit or loss by a reduction in their carrying amounts through a loss allowance account, 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 Company derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.

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 Company 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 Company are recognized at the proceeds received, net of direct issue costs.

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

3) Financial liabilities
a) Subsequent measurement

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

b) Derecognition of financial liabilities

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

k. 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.

l. Revenue recognition

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

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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 Company recognizes revenue and trade receivables concurrently.

m. Leases

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

1) The Company 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 Company as lessee

The Company recognizes right-of-use assets and lease liabilities for all leases at the commencement date of a lease, except for short-term leases and low-value asset leases accounted for 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 balance sheets.

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

Lease liabilities are initially measured at the present value of the lease payments, which comprise fixed payments, 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 Company uses the lessee’s incremental borrowing rate.

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Subsequently, lease liabilities are measured at amortized cost using the effective interest method, with interest expense recognized over the lease terms. 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 Company remeasures the lease liabilities with a corresponding adjustment to the right-of-use-assets. However, if the carrying amount of the right-of-use assets is reduced to zero, any remaining amount of the remeasurement is recognized in profit or loss. For a lease modification that is not accounted for as a separate lease, the Company 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 balance sheets.

n. Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets (even if the assets must take a long time to ready for their intend 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.

o. Employee benefits

1) Short-term employee benefits

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

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 Company’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.

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p. 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 Company’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.

q. 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.

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 Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

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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. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

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

The Company considers the economic implications of the COVID-19 when making its critical accounting estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised if the revisions affect only that period or in the period of the revisions and future periods if the revisions affect both current and future periods.

6. CASH

Cash on hand Checking accounts and demand deposits		December 31	December 31
		2022 $ 167 157,544 $ 157,711	2021 $ 164 307,719 $ 307,883

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

Bank balance	December 31
	2022 2021 0.01%-0.05% 0.01%-0.05%

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

Non-current Domestic investments Listed shares Unlisted shares		December 31	December 31
		2022 $ 10,121,586 101,634 $ 10,223,220	2021 $ 11,958,668 93,646 $ 12,052,314

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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 Company’s strategy of holding these investments for long-term purposes.

8. NOTES RECEIVABLE AND TRADE 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		December 31	December 31
		2022 $ 23,161 (119) $ 23,042 $ 501,221 (2,098) $ 499,123	2021 $ 32,302 (288) $ 32,014 $ 638,589 (4,920) $ 633,669

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

Before accepting any new customer, the Company 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 Company has delegated a team responsible for determining credit limits, credit approvals and other monitoring procedures to ensure that follow-up action is taken to recover overdue debts. In addition, the Company reviews the recoverable amount of each individual trade debt at the end of the reporting period to ensure that adequate allowance is made for possible irrecoverable amounts. In this regard, the management believes the Company’s credit risk was significantly reduced.

The Company 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 Company’s different customer base.

The Company 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 Company continues to engage in enforcement activity to attempt to recover the receivables due. Where recoveries are made, these are recognized in profit or loss.

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

December 31, 2022

Gross carrying amount Loss allowance (Lifetime ECL) Amortized cost December 31, 2021 Gross carrying amount Loss allowance (Lifetime ECL) Amortized cost	Credit Rating A $ 133,243 (666) $ 132,577 Credit Rating A $ 184,739 (924) $ 183,815	Credit Rating B $ 10,901 (109) $ 10,792 Credit Rating B $ - - $ -	Credit Rating C $ - - $ - Credit Rating C $ - - $ -	Credit Rating D $ 52,575 (1,052) $ 51,523 Credit Rating D $ 82,981 (1,660) $ 81,321	Credit Rating E $ 304,502 (271) $ 304,231 Credit Rating E $ 370,869 (2,336) $ 368,533	Notes Receivable $ 23,161 (119) $ 23,042 Notes Receivable $ 32,302 (288) $ 32,014	Total $ 524,382 (2,217) $ 522,165 Total $ 670,891 (5,208) $ 665,683

The aging of receivables was as follows:

Not past due Up to 30 days		December 31	December 31
		2022 $ 524,382 - $ 524,382	2021 $ 670,887 4 $ 670,891

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 Balance at December 31	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2022 $ 4,920 796 (3,618) $ 2,098	2021 $ 4,342 2,262 (1,684) $ 4,920

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
		2022 $ 288 684 (853) $ 119	2021 $ 571 190 (473) $ 288

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9. INVENTORIES

Finished goods Semi-finished goods Work in progress Raw materials Supplies Inventory in transit Less: Allowance for loss		December 31	December 31
		2022 $ 437,756 67,738 19,122 234,054 28,714 447,638 1,235,022 (17,106) $ 1,217,916	2021 $ 577,800 80,291 18,785 252,808 30,819 659,242 1,599,745 (12,525) $ 1,587,220

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

The cost of goods sold for the years ended December 31, 2022 and 2021 included inventory write-downs of $4,581 thousand and $2,495 thousand, respectively.

10. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

Name of Subsidiaries Unlisted company Constant Holding Ltd. (CHL) Glory Ace Union Venture Capital Corp. (UVC) Wei Chen Investment Co. (WCI) Taiwan Union International Investment Corporation (TUI) UPC Chemicals (Malaysia)		December 31	December 31
		2022 $ 23,743,079 599,874 393,390 295,300 1,385,027 1,762,048 $ 28,178,718	2021 $ 25,895,473 540,732 348,054 361,651 1,962,503 - $ 29,108,413

At the end of the reporting period, the proportion of ownership and voting rights on subsidiaries and associates held by the Company were as follows:

CHL Glory Ace UVC WCI TUI UPC Chemicals (Malaysia)	December 31
	2022 2021 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% -

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.

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For the information of financial guarantees the Company provided to its directly or indirectly hold subsidiaries, please refer to Note 28 and Table 2.

The investments in subsidiaries accounted for using the equity method and the share of profit or loss and other comprehensive income of those investments for the years ended December 31, 2022 and 2021 was based on the subsidiaries’ financial statements which have been audited for the same years.

11. PROPERTY, PLANT AND EQUIPMENT

Cost Balance at January 1, 2021 Additions Disposals Reclassification Balance at December 31, 2021 Accumulated depreciation Balance at January 1, 2021 Disposals Depreciation expense Balance at December 31, 2021 Carrying amounts at December 31, 2021 Cost Balance at January 1, 2022 Additions Disposals Reclassification Balance at December 31, 2022 Accumulated depreciation Balance at January 1, 2022 Disposals Depreciation expense Balance at December 31, 2022 Carrying amounts at December 31, 2022	Land $ 1,126,898 - - - $ 1,126,898 $ 1,126,898 $ 1,126,898 - - - $ 1,126,898 $ 1,126,898	Buildings $ 747,760 - (21,521 ) 17,706 $ 743,945 $ 474,132 (19,795 ) 15,751 $ 470,088 $ 273,857 $ 743,945 - (790 ) 95,122 $ 838,277 $ 470,088 (597 ) 17,442 $ 486,933 $ 351,344	Machinery and Equipment $ 1,222,834 - (162,309 ) 19,097 $ 1,079,622 $ 1,012,524 (158,804 ) 40,557 $ 894,277 $ 185,345 $ 1,079,622 275 (9,638 ) 93,984 $ 1,164,243 $ 894,277 (9,548 ) 50,173 $ 934,902 $ 229,341	Warehousing Equipment $ 599,592 - (70,547 ) 13,878 $ 542,923 $ 484,475 (70,131 ) 21,803 $ 436,147 $ 106,776 $ 542,923 - (2,567 ) 134,997 $ 675,353 $ 436,147 (2,564 ) 35,354 $ 468,937 $ 206,416	Other Equipment Construction in Progress and Equipment to Be Inspected $ 812,082 $ 10,754 20,838 242,828 (78,228 ) - (5,456) (45,225) $ 749,236 $ 208,357 $ 675,873 (77,240 ) 33,581 $ 632,214 $ 117,022 $ 208,357 $ 749,236 $ 208,357 9,126 214,458 (93,055 ) - 70,834 (398,508) $ 736,141 $ 24,307 $ 632,214 (92,679 ) 35,424 $ 574,959 $ 161,182 $ 24,307	Total $ 4,519,920 263,666 (332,605 ) - $ 4,450,981 $ 2,647,004 (325,970 ) 111,692 $ 2,432,726 $ 2,018,255 $ 4,450,981 223,859 (106,050 ) (3,571) $ 4,565,219 $ 2,432,726 (105,388 ) 138,393 $ 2,465,731 $ 2,099,488

There was no indication of impairment for the years ended December 31, 2022 and 2021.

The above items of property, plant and equipment used by the Company 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 5-15 years Warehousing equipment 5-15 years Other equipment 3-20 years

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12. LEASE ARRANGEMENTS

a. Right-of-use assets

	December	31
2022 2021 $ 11,812 $ 19,593 For the Year Ended December 31
	2022 $ 10,279 December	2021 $ 10,094 31
	2022 $ 10,570 $ 1,569 December	2021 $ 10,514 $ 9,508 31
	2022 1.80%	2021 1.80%

b. Lease liabilities

c. Material leasing activities and terms

The Company leases buildings for the use of offices with lease terms of 2 to 5 years. The Company does not have bargain purchase options to acquire the leasehold buildings at the end of the lease terms. In addition, the Company 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 Total cash outflow for leases	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2022 $ 17,673 $ 28,694	2021 $ 11,665 $ 22,598

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

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13. OTHER ASSETS

Current Prepayments to suppliers Input VAT and excess business tax paid Prepaid expense Non-current Refundable deposits Long-term prepaid expenses Prepayment for equipment		December	31
		2022 $ 9 26,048 46,970 $ 73,027 December	2021 $ 187 52,230 40,641 $ 93,058 31
		2022 $ 27,148 21,568 4,707 $ 53,423	2021 $ 26,290 41,682 49 $ 68,021

14. BORROWINGS

Long-term Borrowings

Unsecured borrowings Revolving credit loans Less: Current portion		December 31	December 31
		2022 $ 6,430,000 - $ 6,430,000	2021 $ 8,700,000 (300,000) $ 8,400,000

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

Effective Maturity Day Interest Rate Fixed interest rate loan Unsecured loans (NTD) Used in revolving credit before June 2023 0.92% Used in revolving credit before August 2024 2.00%/0.94% Used in revolving credit before April 2023 0.90% Used in revolving credit before October 2023 0.86% Used in revolving credit before October 2024 1.65% Used in revolving credit before October 2025 1.91% Used in revolving credit before December 2022 0.85% Used in revolving credit before June 2023 0.88% Used in revolving credit before June 2023 0.90% Used in revolving credit before June 2024 1.88% Used in revolving credit before June 2024 1.98%	December 31
	2022 2021 $ - $ 1,000,000 310,000 770,000 - 700,000 - 630,000 300,000 - 300,000 - - 300,000 - 760,000 - 240,000 100,000 - 40,000 - (Continued)

Effective
Maturity Day
Interest Rate
Fixed interest rate loan
Unsecured loans (NTD) Used in revolving credit before June 2023
0.92%

Used in revolving credit before August 2024
2.00%/0.94%
Used in revolving credit before April 2023
0.90%
Used in revolving credit before October 2023
0.86%
Used in revolving credit before October 2024
1.65%
Used in revolving credit before October 2025
1.91%
Used in revolving credit before December 2022
0.85%
Used in revolving credit before June 2023
0.88%
Used in revolving credit before June 2023
0.90%
Used in revolving credit before June 2024
1.88%
Used in revolving credit before June 2024
1.98%

December 31

2022
2021
$ - $ 1,000,000

310,000
770,000
-
700,000
-
630,000
300,000
-
300,000
-
-
300,000
-
760,000
-
240,000
100,000
-
40,000
-
(Continued)

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Effective Maturity Day Interest Rate Used in revolving credit before December 2023 0.90% Used in revolving credit before May 2023 0.83% Used in revolving credit before May 2024 1.77% Used in revolving credit before May 2024 1.77% Used in revolving credit before November 2023 0.96% Used in revolving credit before January 2024 0.89% Used in revolving credit before April 2024 1.00% 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%/0.90% Used in revolving credit before March 2023 0.99% Total of fixed interest rate loan Floating interest rate loan Unsecured loans (NTD) Repaid once in December 2024 1.97% Repaid once in April 2024 1.80% Repaid once in June 2023 0.98% Repaid once in November 2025 1.52% Repaid once in May 2024 1.45% Repaid once in November 2023 1.89% Total of floating interest rate loan Total of long-term borrowing Less: Current portion		December 31
		2022 2021 $ - $ 500,000 - 500,000 150,000 - 350,000 - - 500,000 - 600,000 - 100,000 500,000 - 50,000 - 730,000 800,000 - 900,000 2,830,000 8,300,000 500,000 - 700,000 - - 400,000 400,000 - 1,500,000 - 500,000 - 3,600,000 400,000 6,430,000 8,700,000 - (300,000) $ 6,430,000 $ 8,400,000 (Concluded)

15. BONDS PAYABLE

Secured domestic bonds Less: Discount of bonds Less: Current portion		December 31	December 31
		2022 $ 9,000,000 (9,089) 8,990,911 (5,995,566) $ 2,995,345	2021 $ 6,000,000 (8,867) 5,991,133 - $ 5,991,133

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

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

16. NOTES PAYABLE AND TRADE PAYABLES

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

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17. OTHER LIABILITIES

Current Other payables Payables for salaries or bonuses Payables for freight Payables for purchases of equipment Interest payables Payables for utilities Payables for compensation of employees Payables for compensation of directors Others Other liabilities Contract liabilities Others PROVISIONS Non-current Employee benefits		December 31	December 31
		2022 $ 55,977 9,463 4,681 32,238 6,529 - - 49,442 $ 158,330 $ 46,477 3,304 $ 49,781 December	2021 $ 58,222 12,445 6,389 4,535 4,820 32,000 10,000 46,348 $ 174,759 $ 13,697 7,993 $ 21,690 31
		2022 $ 12,349	2021 $ 10,363

18. PROVISIONS

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

19. 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.

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 Company assesses the balance in the pension fund. If the amount of the balance in the pension fund is inadequate to pay retirement benefits for employees

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who conform to retirement requirements in the next year, the Company is required to fund the difference in one appropriation that should be made before the end of March of the next year. The pension fund is managed by the Bureau of Labor Funds, Ministry of Labor (the “Bureau”); the Company has no right to influence the investment policy and strategy.

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

Present value of defined benefit obligation Fair value of plan assets Net defined benefit liabilities Movements in net defined benefit liabilities were as follows: Present Value of the Defined Benefit Obligation Balance at January 1, 2021 $ 560,069 Current service cost 4,191 Net interest expense (income) 2,100 Recognized in profit or loss 6,291 Remeasurement Return on plan assets (excluding amounts included in net interest) - Actuarial loss - changes in demographic assumptions 12,876 Actuarial gain - changes in financial assumptions (4,408) Actuarial loss - experience adjustments 21,156 Recognized in other comprehensive income 29,624 Contributions from the employer - Benefits paid (30,386) Balance at December 31, 2021 $ 565,598 Balance at January 1, 2022 $ 565,598 Current service cost 3,612 Net interest expense (income) 2,828 Recognized in profit or loss 6,440 Remeasurement Return on plan assets (excluding amounts included in net interest) - Actuarial gain - changes in financial assumptions (4,539) Actuarial loss - experience adjustments 12,137 Recognized in other comprehensive income 7,598 Contributions from the employer - Benefits paid (44,263) Balance at December 31, 2022 $ 535,373		December 31
	2022 2021 $ 535,373 $ 565,598 (299,483) (313,118) $ 235,890 $ 252,480 Fair Value of the Plan Assets Net Defined Benefit Liabilities $ (333,274) $ 226,795 - 4,191 (1,255) 845 (1,255) (5,036) (5,022) (5,022) - 12,876 - (4,408) - 21,156 (5,022) 24,602 (2,801) (2,801) 29,234 (1,152) $ (313,118) $ 252,480 $ (313,118) $ 252,480 - 3,612 (1,573) 1,255 (1,573) 4,867 (26,326) (26,326) - (4,539) - 12,137 (26,326) (18,728) (2,729) (2,729) 44,263 - $ (299,483) $ 235,890

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

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

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
	2022 2021 1.125% 0.500% 3.000% 2.500%

If possible reasonable changes in each of the significant actuarial assumptions will occur and all other assumptions will 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
		2022 $ (7,863) $ 8,066 $ 7,789 $ (7,634)	2021 $ (8,837) $ 9,074 $ 8,749 $ (8,567)

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
		2022 $ 2,697 6.3 years	2021 $ 2,803 6.8 years

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20. 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
		2022 2,000,000 $ 20,000,000 1,354,763 $ 13,547,626 $ 4,288	2021 2,000,000 $ 20,000,000 1,347,121 $ 13,471,206 $ 6,559

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.

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.

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
		2022 $ 783,836 21,898 327,162 219,189 881 34,989 $ 1,387,955	2021 $ 793,949 21,898 310,742 219,189 585 42,068 $ 1,388,431

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).

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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 21(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.

The appropriations of earnings for 2021 and 2020 were as follows:

Legal reserve Cash dividends Cash dividends per share (NT$)	Appropriation of Earnings	Appropriation of Earnings	Appropriation of Earnings
	For the Year Ended December 31
		2021 $ 257,369 $ 1,311,831 $ 1.00	2020 $ 242,128 $ 1,292,348 $ 1.00

The above appropriations for cash dividends were resolved by the Company’s board of directors on March 8, 2022 and March 18, 2021, respectively; the other proposed appropriations were resolved by the shareholders in their meeting on May 26, 2022 and July 21, 2021.

The appropriation of earnings for 2022 was resolved by the Company’s board of directors on March 6, 2023. The appropriation and dividends per share were as follows:

	For the Year	For the Year
		Ended
	December 31,
		2022
Legal reserve	$	-
Cash dividends	$	263,583
Cash dividends per share (NT$)	$	0.2

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, 2023.

d. Special reserve

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

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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 Share from subsidiaries accounted for using the equity method Balance at December 31 Unrealized gain (loss) on financial assets at FVTOCI Balance at January 1 Recognized for the year Unrealized gain - equity instruments Share from subsidiaries accounted for using the equity method Cumulative unrealized (loss) 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
	2022 2021 $ (1,153,241) $ (896,268) 762,218 (259,585) (11,840) 3,130 1,250 (518) $ (401,613) $ (1,153,241) For the Year Ended December 31
		2022 $ 8,785,437 (1,829,094) (253,666) (78,641) $ 6,624,036	2021 $ 5,064,268 3,723,068 444,009 (445,908) $ 8,785,437

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

f. Treasury shares

Number of shares at January 1, 2021 Decrease during the year Number of shares at December 31, 2021 Number of shares at January 1, 2022 Increase during the year Number of shares at December 31, 2022	Purpose of Buy-back
	Shares Transferred to Employees (In Thousands of Shares) 40,000 (1,335) 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.

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21. NET (LOSS) PROFIT

Information about net (loss) profit is as follows:

a. Interest income

Bank deposits b. Other income Operating lease rental income Dividends Commission income Indemnity income (Note 29) Others	For the Year Ended	For the Year Ended	December 31
	2022 $ 299 For the Year Ended		2021 $ 25 December 31
		2022 $ 79,008 449,283 7 266,785 92 $ 795,175	2021 $ 78,737 314,750 85 80,063 - $ 473,635

c. Other gains and losses

Net foreign exchange gains (losses) Gains (losses) on disposal of property, plant and equipment Bank charges (including bonds) Others Finance costs Interest on bank loans (including bonds) Interest on lease liabilities	For the Year Ended	For the Year Ended	December 31
	2022 $ 41,447 494 (40,961) (18,601) $ (17,621) For the Year Ended		2021 $ (1,435) (6,285) (34,927) (210,175) $ (252,822) December 31
		2022 $ 171,212 320 $ 171,532	2021 $ 125,868 417 $ 126,285

d. Finance costs

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e. Depreciation and amortization

Property, plant and equipment Right-of-use assets Long-term prepaid expenses An analysis of depreciation by function Cost of goods sold Operating expenses Other losses An analysis of amortization by function Cost of goods sold Operating expenses f. Employee benefits expense Short-term benefits Post-employment benefits (Note 19) 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	For the Year Ended	December 31
	2022 $ 138,393 10,279 27,569 $ 176,241 $ 125,686 15,397 7,589 $ 148,672 $ 20,708 6,861 $ 27,569 For the Year Ended		2021 $ 111,692 10,094 28,596 $ 150,382 $ 97,662 15,987 8,137 $ 121,786 $ 22,553 6,043 $ 28,596 December 31
		2022 $ 314,008 8,962 4,867 13,829 9,342 15,991 $ 353,170 $ 174,753 178,417 $ 353,170	2021 $ 342,380 8,539 5,036 13,575 45,445 17,018 $ 418,418 $ 205,293 213,125 $ 418,418

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For the Year Ended December 31

Employee benefits expense Salary expense Labor and health insurance expense Pension expense - defined contribution plans Pension expense - defined benefit plans Remuneration of directors Other employee benefits			2022	Total $ 292,203 24,551 8,962 4,867 6,596 15,991			2021
		Operating Costs $ 143,831 13,323 4,584 2,482 - 10,533	Operating Expenses $ 148,372 11,228 4,378 2,385 6,596 5,458			Operating Costs $ 174,221 13,231 4,445 2,417 - 10,979	Operating Expenses $ 176,221 11,912 4,094 2,619 12,240 6,039	Total $ 350,442 25,143 8,539 5,036 12,240 17,018

Total employee benefits expense $ 174,753 $ 178,417 $ 353,170 $ 205,293 $ 213,125 $ 418,418

1) As of December 31, 2022 and 2021, the Company had 230 and 234 employees, respectively, which included 7 non-employee directors for both years. The basis of calculation for headcount was the same as the basis of calculation for employee benefits expense.
2) Average employee benefits expense for the years ended December 31, 2022 and 2021 were $1,554 thousand and $1,789 thousand, respectively. Average salary expenses for the years ended December 31, 2022 and 2021 were $1,310 thousand and $1,544 thousand, respectively. Average salary expenses decreased by 15% year-on-year.
3) The Company’s compensation policy is determined by considering the operating performance and future development of the current year. The remuneration of directors, managers and employees is described as follows:

Directors

a) According to Article 28 of the Company’s Articles and related regulations, the remuneration of directors is distributed after approval by the compensation committee and the board of directors.
b) According to Article 18 of the Company’s Articles, the Company can pay directors regardless of profit or loss up to the limit prescribed by law and the Company’s Articles. The amount and the method of distribution are determined by the extent and value of the services provided for the management of the Company, and is submitted to and reviewed by the compensation committee before distribution.
c) The performance of the directors and the reasonableness of the overall compensation program are evaluated based on the Company’s operating results and related regulations. Such proposal shall first be submitted to the compensation committee for review before it is delivered to the board of directors for resolution.

Managers

a) The remuneration of managers paid by the Company, which includes the salary, bonuses or profit sharing, etc., is distributed in accordance with the charter of the compensation committee and related regulations on the remuneration of managers.
b) The performance of managers and the reasonableness of overall compensation program are evaluated based on the Company’s operating results and related regulations. Such proposal shall first be submitted to the compensation committee for review before it is delivered to the board of directors for resolution.
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Staff

a) To ensure fairness and meet the market levels of salaries and bonuses, the Company adjusts salaries or distributes related bonuses in accordance with the consumer price index, external competitors, annual operating results and employees’ performance.
b) The Company also established work rules and regulations for performance evaluation as a reference to the compensation policies.
g. Employees’ compensation and remuneration of directors

According to the Articles of Incorporation of the Company, the Company accrued employees’ compensation and remuneration of directors at rates of no less than 1% and no higher than 1%, respectively, of net profit less accumulated deficit. As it was net loss for the year ended December 31, 2022, the Company did not estimate the employees’ compensation and the remuneration of directors for the year.

The compensation of employees and the remuneration of directors for the year ended December 31, 2021, which were approved by the Company’s board of directors on March 8, 2022 is as follows:

Accrual rate Compensation of employees Remuneration of directors Amount Compensation of employees Remuneration of directors	For the Year Ended December 31, 2021 1.44% 0.45% For the Year Ended December 31, 2021	For the Year Ended December 31, 2021 1.44% 0.45% For the Year Ended December 31, 2021
		Cash $ 32,000 $ 10,000

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

There is no difference between the actual amounts of employees’ compensation and remuneration of directors paid and the amounts recognized in the financial statements for the years ended December 31, 2021 and 2020.

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.

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h. Gains or losses on foreign currency exchange

Foreign exchange gains Foreign exchange losses	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2022 $ 68,727 (27,280) $ 41,447	2021 $ 21,729 (23,164) $ (1,435)

22. INCOME TAXES

a. Income tax recognized in profit or loss

Major components of income tax expense are as follows:

For the Year Ended December 31 2022 2021 Current tax In respect of the current year $ 50,224 $ - Income tax on unappropriated earnings - 32,000 Adjustments for prior year 2,505 2,418 52,729 34,418 Deferred tax In respect of the current year 2,910 (6,650) Income tax expense recognized in profit or loss $ 55,639 $ 27,768 A reconciliation of accounting profit and income tax expense is as follows: For the Year Ended December 31 2022 2021 (Loss) profit before tax $ (1,180,585) $ 2,175,230 Income tax (benefit) expense calculated at the statutory rate $ (236,117) $ 435,046 Permanent differences 432,468 (378,746) Tax-exempt income (143,217) (62,950) Tax on unappropriated earnings - 32,000 Adjustments for prior years’ tax 2,505 2,418 Income tax expense recognized in profit or loss $ 55,639 $ 27,768	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2022 $ (1,180,585) $ (236,117) 432,468 (143,217) - 2,505 $ 55,639	2021 $ 2,175,230 $ 435,046 (378,746) (62,950) 32,000 2,418 $ 27,768

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b. Income tax recognized in other comprehensive income

Deferred income tax expense (benefit) In respect of the current period Translation of foreign operations Remeasurement of defined benefit plans Total income tax recognized in other comprehensive income	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2022 $ 11,840 3,750 15,590 $ 15,590	2021 $ (3,130) (4,920) (8,050) $ (8,050)

c. Current tax assets and liabilities

Current tax assets Tax refund receivable Current tax liabilities Income tax payable		December	31
		2022 $ 7,857 $ 49,791	2021 $ 7,835 $ 32,000

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, 2022

Deferred tax assets Temporary differences Allowance for write-down of inventories Defined benefit obligations Exchange differences on translating the financial statements of foreign operations Others Deferred tax liabilities Temporary differences Investment income abroad Land revaluation incremental tax	Opening Balance Recognized in Profit or Loss Recognized in Other Comprehen- sive Income $ 2,500 $ 920 $ - 50,490 4,180 (3,750) 34,660 - (11,840) 10,190 (8,020) - $ 97,840 $ (2,920) $ (15,590) $ 117,480 $ (10) $ - 99,828 - - $ 217,308 $ (10) $ -	Closing Balance $ 3,420 50,920 22,820 2,170 $ 79,330 $ 117,470 99,828 $ 217,298

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For the year ended December 31, 2021

Deferred tax assets Temporary differences Allowance for write-down of inventories Allowance for impairment loss Defined benefit obligations Exchange differences on translating the financial statements of foreign operations Others Deferred tax liabilities Temporary differences Investment income abroad Land revaluation incremental tax	Opening Balance Recognized in Profit or Loss Recognized in Other Comprehen- sive Income $ 2,010 $ 490 $ - 170 (170) - 45,350 220 4,920 31,530 - 3,130 4,090 6,100 - $ 83,150 $ 6,640 $ 8,050 $ 117,490 $ (10) $ - 99,828 - - $ 217,318 $ (10) $ -	Closing Balance $ 2,500 - 50,490 34,660 10,190 $ 97,840 $ 117,480 99,828 $ 217,308

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

As of December 31, 2022 and 2021, the taxable temporary differences associated with investments in subsidiaries for which no deferred tax liabilities have been recognized were $2,140,000 thousand and $2,480,000 thousand, respectively.

f. Income tax assessments

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

23. (LOSS) EARNINGS PER SHARE

Unit: NT$ Per Share

Basic (loss) earnings per share Diluted earnings per share	For	the Year Ended December 31	the Year Ended December 31
		2022 $ (0.94)	2021 $ 1.66 $ 1.62

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The (loss) earnings and weighted average number of ordinary shares outstanding used in the computation of (loss) earnings per share are as follows:

Net (Loss) Profit for the Year

(Loss) earnings used in the computation of basic and diluted earnings per share	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2022 $ (1,236,224)	2021 $ 2,147,262

The weighted average number of ordinary shares outstanding (in thousands of shares) is as follows:

Weighted average number of ordinary shares used in the computation of basic (loss) earnings per share Effect of potentially dilutive ordinary shares Employee share options Compensation of employees Weighted average number of ordinary shares used in the computation of diluted earnings per share	For the Year Ended	For the Year Ended	December 31
		2022 1,313,101	2021 1,297,478 24,829 1,858 1,324,165

The Company may settle the compensation or bonuses paid to employees in cash or shares; therefore, the Company assumes that the entire amount of the compensation or bonuses will be settled in shares, and the resulting potential shares will be included in the weighted average number of shares outstanding used in the computation of diluted earnings per share, as the effect is dilutive. Such dilutive effect of the potential shares is included in the computation of diluted earnings per share until the number of shares to be distributed to employees is resolved by the Company’s board of directors in the following year.

24. SHARE-BASED PAYMENT ARRANGEMENTS

a. Employee share option plan of the Company - 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 anniversary year from the grant date.

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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
	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	2021
		Number of Options (In Thousands of Units) Weighted- average Exercise Price ($) 40,000 $ 9.4 (15,510) 8.9 (94) 8.9 24,396 8.9 4,443 8.9

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% and 25.03%
Expected life (in years)	4, 4.5 and 5 years
Expected dividend yield	-
Risk-free interest rate	0.52%, 0.53% and 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 $9,342 thousand and $26,141 thousand for the years ended December 31, 2022 and 2021, respectively.

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

b. Employee share option plan of the Company - transferred treasury shares

Employees of the Company were transferred 1,335 thousand shares in on September 8, 2021 according to the treasury share transfer regulation of the Company by $9.34. The total compensation cost recognized was $19,304 thousand.

25. CAPITAL MANAGEMENT

The Company manages its capital to ensure that it will be able to continue as a going concern while maximizing the return to stakeholders through the optimization of the debt and equity balance. There will be no significant change in the overall strategy of the Company in the short term.

Key management personnel of the Company 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 Company may adjust the amount of dividends, and the amount of new debt issued or existing debt redeemed.

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The review of the capital structure is based on the information of consolidated financial statements, please refer to the consolidated financial statements.

26. FINANCIAL INSTRUMENTS

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

December 31, 2022

Financial liabilities Financial liabilities at amortized cost Domestic corporate bonds payable December 31, 2021 Financial liabilities Financial liabilities at amortized cost Domestic corporate bonds payable	Carrying Amount $ 8,990,911 Carrying Amount $ 5,991,133			FairValue	FairValue
			Level 1 $ -	Level 2 Level 3 $ 9,012,414 $ - FairValue		Total $ 9,012,414
			Level 1 $ -	Level 2 $ 6,025,200	Level 3 $ -	Total $ 6,025,200

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.

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

December 31, 2022 Financial assets at FVTOCI Investments in equity instruments Domestic listed shares Domestic unlisted shares	Level 1 $ 10,121,586 - $ 10,121,586	Level 2 $ - - $ -	Level 3 $ - 101,634 $ 101,634	Total $ 10,121,586 101,634 $ 10,223,220

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December 31, 2021

Financial assets at FVTOCI Investments in equity instruments Domestic listed shares Domestic unlisted shares	Level 1 $ 11,958,668 - $ 11,958,668	Level 2 $ - - $ -	Level 3 $ - 93,646 $ 93,646	Total $ 11,958,668 93,646 $ 12,052,314

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

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

For the year ended December 31, 2022

Financial Assets
Balance at January 1, 2022

Recognized in other comprehensive income (included in unrealized gain (loss)
on financial assets at FVTOCI)
Balance at December 31, 2022

For the year ended December 31, 2021
Financial Assets
Balance at January 1, 2021

Recognized in other comprehensive income (included in unrealized gain (loss)
on financial assets at FVTOCI)

Balance at December 31, 2021

Financial Assets
at FVTOCI

Equity
Instruments
$ 93,646

7,988
$ 101,634
Financial Assets
at FVTOCI

Equity
Instruments
$ 106,443

(12,797)
$ 93,646

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.

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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.

c. Categories of financial instruments

Financial assets Financial assets at amortized cost (1) Equity instruments at FVTOCI Financial liabilities Financial liabilities at amortized cost (2)	December 31
	2022 2021 $ 710,728 $ 1,010,405 10,223,220 12,052,314 15,944,921 15,586,064

1) The balances included financial assets measured at amortized cost, which comprise cash, notes receivable, trade receivables, other receivables and refundable deposits.
2) The balances included financial liabilities at amortized cost, which comprise notes payable, trade payables, other payables, bonds issued, current portion of long-term liabilities, long-term borrowings and guarantee deposits received.
d. Financial risk management objectives and policies

The Company’s major financial instruments include equity investments, receivables, payables, and borrowings. The Company’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 Company 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 Company’s 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 Company’s exposure to market risks or the manner in which these risks are managed and measured.

a) Foreign currency risk

The Company has foreign currency denominated sales and purchases, which exposes the Company to foreign currency risk. Approximately 45% of the Company’s sales is denominated in currencies other than the functional currency, whilst almost 90% of costs is denominated in currencies other than the functional currency of the Company.

The carrying amounts of the Company’s foreign currency denominated monetary assets and monetary liabilities are set out in Note 32.

46 -

Sensitivity analysis

The Company is mainly exposed to the USD.

The following table details the Company’s sensitivity to a 3% increase and decrease in New Taiwan dollars 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 items, and adjusted their translation at the end of the year for a 3% change in foreign currency rates. A positive number below indicates an increase in pre-tax profit (loss) associated with the New Taiwan dollar strengthening 3% against the USD. For a 3% weakening of the New Taiwan dollar against the USD, there would be an equal and opposite impact on pre-tax profit (loss), and the balances below would be negative.

Profit or loss	USD Impact
	For the Year Ended December 31
	2022 2021 $ 5,158 $ 6,068

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

The Company’s sensitivity to foreign currency decreased for the year ended December 31, 2022 mainly due to the decrease in the amount of net foreign currency liabilities.

b) Interest rate risk

The Company is exposed to interest rate risk because the Company 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 Company’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 liabilities Cash flow interest rate risk Financial liabilities	December 31
	2022 2021 $ 11,833,050 $ 14,311,155 3,600,000 400,000

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

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

47 -

Sensitivity analysis

The sensitivity analysis below was determined based on the Company’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 Company pre-tax profit for the years ended December 31, 2022 and 2021 would decrease/increase by $18,000 thousand and $2,000 thousand, respectively.

The Company’s sensitivity to interest rates increased for the year ended December 31, 2022 mainly due to the increase in the amount of variable-rate bank borrowings

c) Other price risk

The Company was exposed to equity price risk through its investments in equity securities. Equity investments are held for strategic rather than for trading purposes, the Company does not actively trade these investments. The Company’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 other comprehensive income for the years ended December 31, 2022 and 2021 would have increased/decreased by $511,161 thousand and $602,616 thousand, respectively, as a result of the changes in fair value of financial assets at FVTOCI.

The Company’s sensitivity to equity prices decreased because the Company held less equity securities in the current period.

2) Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in a financial loss to the Company. At the end of the year, the Company’s maximum exposure to credit risk, which would cause a financial loss to the Company due to the failure of the counterparty to discharge its obligation, could be 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.

Besides, the Company 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.

48 -

The Company transacts with a large number of customers. The Company did not have significant credit risk exposure to any single counterparty or any group of counterparties having similar characteristics. Concentration of credit risk to any other counterparty did not exceed 10% of gross monetary assets at any time during the years ended December 31, 2022 and 2021.

The Company’s concentration of credit risk by geographical locations was mainly in Taiwan, which accounted for 44% and 40% of total trade receivables as of December 31, 2022 and 2021, respectively.

3) Liquidity risk

The Company manages liquidity risk by monitoring and maintaining a level of cash deemed adequate to finance the Company’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 Company relies on bank borrowings as a significant source of liquidity. As of December 31, 2022 and 2021, the Company 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 Company’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 Company 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, 2022 Non-derivative financial liabilities Non-interest bearing liabilities Lease liabilities Variable interest rate liabilities Fixed interest rate liabilities December 31, 2021 Non-derivative financial liabilities Non-interest bearing liabilities Lease liabilities Variable interest rate liabilities Fixed interest rate liabilities	0-3 Months $ 510,226 2,675 - - $ 512,901 $ 881,525 2,357 - - $ 883,882	3 Months to 1 Year $ - 8,026 500,000 6,000,000 $ 6,508,026 $ - 7,072 - 300,000 $ 307,072	1-5 Years $ - 1,585 3,100,000 5,830,000 $ 8,931,585 $ - 11,013 400,000 14,000,000 $ 14,411,013

49 -

b) Financing facilities

Unsecured bank loan facilities Amount used Amount unused		December 31	December 31
		2022 $ 6,430,000 10,755,500 $ 17,185,500	2021 $ 8,700,000 6,506,531 $ 15,206,531

27. TRANSACTIONS WITH RELATED PARTIES

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

a. Related party name and category

Related Party Name

Related Party Category

Lien Hwa Industrial Holdings Corp. (LHIHC)	With the same chairman
Lien Hwa Property Development Corp. (LHPDC)	Subsidiary of LHIHC
Linde Lienhwa Industrial GASES Co., Ltd. (LLIG)	Associate of LHIHC
Asia Union Electronic Chemical Corp. (AUECC)	Associate of LLIG
Harbinger Venture Management Co., Ltd. (HVMC)	With the same chairman
Lienhwa United LPG Co., Ltd. (LPG)	The Company is its director
Zhongshan Unicizers	Subsidiary
Zhuhai Unicizers	Subsidiary
Taizhou Union Chemical	Subsidiary
Zhenjiang Union Chemical	Subsidiary
Panjin Union Chemical	Subsidiary
Nanchong Unicizers	Subsidiary
UPC Chemicals (Malaysia)	Subsidiary
UPCM Trading (Vietnam)	Subsidiary
Union Hong Kong	Subsidiary

b. Operating revenue

Line Item Related Party Category Sales Subsidiaries Purchase of goods Related Party Category Subsidiaries Associates of investors with significant influence over the Company	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
	2022 2021 $ 1,332,482 $ 1,347,794 For the Year Ended December 31
		2022 $ 814,639 13,425 $ 828,064	2021 $ 2,366,254 12,193 $ 2,378,447

c. Purchase of goods
50 -
d. Lease arrangements - the Company is lessee

	December 31	December 31
2022 2021 $ 12,139 $ 20,022 For the Year Ended December 31
	2022 2021 $ 320 $ 417 December 31
2022 2021 $ 34,702 $ 58,385 3,969 3,969 $ 38,671 $ 62,354 For the Year Ended December 31
2022 2021 $ 18,641 $ 18,681 5,530 5,530 $ 24,171 $ 24,211 For the Year Ended December 31
	2022 $ 49 546 $ 595	2021 $ 70 516 $ 586

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

51 -

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

December 31 Line Item Related Party Category/Name 2022 2021 Trade receivables Subsidiaries $ 219,824 $ 157,100 h. Other receivables from related parties (excluding loans to related parties) December 31 Line Item Related Party Category/Name 2022 2021 Other receivables Associates of investors with significant influence over the Company LPG $ 1,547 $ 1,427 LLIG 540 535 AUECC - 1,848 Subsidiaries 355 179 Subsidiaries of investors with significant influence over the Company 75 46 $ 2,517 $ 4,035 i. Refundable deposits December 31 Line Item Related Party Category/Name 2022 2021 Other non-current assets Subsidiaries of investors with significant influence over the Company LHPDC $ 1,571 $ 1,692 j. Payables to related parties December 31 Line Item Related Party Category/Name 2022 2021 Trade payables Subsidiaries $ 50,807 $ 122,254 Associates of investors with significant influence over the Company 1,375 1,185 $ 52,182 $ 123,439 k. Guarantee deposits received December 31 Line Item Related Party Category/Name 2022 2021 Guarantee deposits received Associates of investors with significant influence over the Company AUECC $ 3,685 $ 3,315		December 31	December 31
		2022 2021 $ 1,547 $ 1,427 540 535 - 1,848 355 179 75 46 $ 2,517 $ 4,035 December 31
		2022 2021 $ 1,571 $ 1,692 December 31
		2022 2021 $ 50,807 $ 122,254 1,375 1,185 $ 52,182 $ 123,439 December 31
		2022 $ 3,685	2021 $ 3,315

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

52 -
l. 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
		2022 $ 31,789 461 1,498 $ 33,748	2021 $ 41,935 463 3,808 $ 46,206

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

28. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

In addition to those disclosed in other notes, significant commitments and contingencies of the Company as of December 31, 2022 and 2021 were as follows:

a. As of December 31, 2022 and 2021, unused letters of credit for purchases of raw materials and machinery and equipment amounted to approximately $14,816 thousand and $114,930 thousand, respectively.
b. Unrecognized commitments were as follows:

Acquisition of raw materials, supplies and repair parts Acquisition of property, plant and equipment		December 31	December 31
		2022 $ 739,911 $ 39,235	2021 $ 769,788 $ 78,069

c. As of December 31, 2022, the Company provided financial guarantee for subsidiaries 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 - RMB638,000 thousand.
3) UPC Chemicals (Malaysia) - US$50,000 thousand.
4) Panjin Union Materials - RMB258,000 thousand.
5) Panjin Union Chemical - RMB800,000 thousand.
6) Union Hong Kong - US$15,000 thousand and EUR7,281 thousand.
53 -

29. SIGNIFICANT LOSSES FROM DISASTERS

On January 29, 2021, a fire damaged the Company’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 income.

30. SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD

In order to save management costs and enhance the competitiveness of the Group, the board of directors resolved on March 6, 2023 to adjusted the holding structure as follows:

a. The Company intends to merge Granfaith and Faithouse, the 100% indirectly owned BVI subsidiaries. Granfaith will be the surviving company while Faithouse will be dissolved in the merger.
b. The Company originally held 100% of Nanchong Unicizers and Sichung Logistics indirectly through the above-mentioned subsidiaries. After the above-mentioned merger is completed, it will continue to process the merger of Nanchong Unicizers and Sichung Logistics. After the merger, Nanchong Unicizers will be the surviving company while Sichung Logistics will be dissolved in the merger.

31. OTHER ITEMS

Due to the impact of the COVID-19 pandemic which has evolved globally and currently in Taiwan, the global economy and financial industry are still facing significant uncertainties. As of the date the consolidated financial statements were authorized for issue, the Company assessed that the pandemic did not have a material impact on its ability to continue as a going concern, nor did it have an impact on the impairment of assets or increase the risks arising from financing activities. The Company is continuously observing and assessing the impact of the pandemic on the aforementioned aspects.

32. SIGNIFICANT FINANCIAL ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

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

December 31, 2022

		Foreign			Carrying
		Currency			Amount
	(In Thousands)		Exchange Rate	(In	Thousands)
Financial assets
Monetary items
USD	$	3,740	30.71 (USD:NTD)	$	114,855
Non-monetary items
Investments accounted for using the
equity method
USD	$	850,049	30.71 (USD:NTD)	$	26,105,001
					(Continued)

54 -

		Foreign			Carrying
		Currency			Amount
	(In Thousands)		Exchange Rate	(In	Thousands)
Financial liabilities
Monetary items
USD	$	9,338	30.71 (USD:NTD)	$	286,770
					(Concluded)
December 31, 2021
		Foreign			Carrying
		Currency		Amount (In
	(In Thousands)		Exchange Rate	Thousands)
Financial assets
Monetary items
USD	$	16,692	27.68 (USD:NTD)	$	462,035
Non-monetary items
Investments accounted for using the
equity method
USD	$	955,063	27.68 (USD:NTD)	$	26,436,205
Financial liabilities
Monetary items
USD	$	23,999	27.68 (USD:NTD)	$	664,292

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

For the Year Ended December 31

Foreign Currency USD	2022 Exchange Rate (Foreign Currency: Functional Currency) Net Foreign Exchange Gains (Losses) 30.710 (USD:NTD) $ 41,447	2021
		Exchange Rate (Foreign Currency: Functional Currency) Net Foreign Exchange Gains (Losses) 27.680 (USD:NTD) $ (1,435)

33. 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) Marketable securities acquired or disposed of at costs or prices of at least NT$300 million or 20% of the paid-in capital (Table 4)
55 -
5) Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital (Table 5)
6) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital (Table 6)
7) Trading in derivative instruments (None)
8) Information on investees (Table 7)
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 28 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)
- g) 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)
56 -

TABLE 1

UPC TECHNOLOGY CORP.

FINANCING PROVIDED TO OTHERS FOR THE YEAR ENDED DECEMBER 31, 2022 (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 Logistics Panjin Union Chemical 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	$ 1,366,914 (RMB 310,000 thousand ) 485,034 (RMB 110,000 thousand ) 1,499,196 (RMB 340,000 thousand ) 529,128 (RMB 120,000 thousand ) 485,034 (RMB 110,000 thousand ) 264,564 (RMB 60,000 thousand ) 132,282 (RMB 30,000 thousand ) 132,282 (RMB 30,000 thousand ) 132,282 (RMB 30,000 thousand )	$ 1,102,350 (RMB 250,000 thousand ) 242,517 (RMB 55,000 thousand ) 793,692 (RMB 180,000 thousand ) 264,564 (RMB 60,000 thousand ) 220,470 (RMB 50,000 thousand ) 264,564 (RMB 60,000 thousand ) 132,282 (RMB 30,000 thousand ) 132,282 (RMB 30,000 thousand ) 132,282 (RMB 30,000 thousand )	$ 730,417 (RMB 165,650 thousand ) 198,423 (RMB 45,000 thousand ) 573,222 (RMB 130,000 thousand ) - 154,329 (RMB 35,000 thousand ) - 132,282 (RMB 30,000 thousand ) 44,094 (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	$ - - - - - - - - -	- - - - - - - - -	$ - - - - - - - - -	$ 2,217,661 (RMB 502,939 thousand ) (Note 3) 2,217,661 (RMB 502,939 thousand ) (Note 3) 2,217,661 (RMB 502,939 thousand ) (Note 3) 2,217,661 (RMB 502,939 thousand ) (Note 3) 2,217,661 (RMB 502,939 thousand ) (Note 3) 2,217,661 (RMB 502,939 thousand ) (Note 3) 2,217,661 (RMB 502,939 thousand ) (Note 3) 2,217,661 (RMB 502,939 thousand ) (Note 3) 2,217,661 (RMB 502,939 thousand ) (Note 3)	$ 4,435,322 (RMB 1,005,879 thousand ) (Note 4) 4,435,322 (RMB 1,005,879 thousand ) (Note 4) 4,435,322 (RMB 1,005,879 thousand ) (Note 4) 4,435,322 (RMB 1,005,879 thousand ) (Note 4) 4,435,322 (RMB 1,005,879 thousand ) (Note 4) 4,435,322 (RMB 1,005,879 thousand ) (Note 4) 4,435,322 (RMB 1,005,879 thousand ) (Note 4) 4,435,322 (RMB 1,005,879 thousand ) (Note 4) 4,435,322 (RMB 1,005,879 thousand ) (Note 4)
2	Glory Ace	Union Hong Kong	Receivable from related parties	Yes	598,845 (US$ 19,500 thousand )	598,845 (US$ 19,500 thousand )	598,845 (US$ 19,500 thousand )	-	2	-	Operating capital	-	-	-	599,923 (US$ 19,535 thousand ) (Note 5)	599,923 (US$ 19,535 thousand ) (Note 6)
3	CHL	UPC Chemicals (Malaysia) UPCM Trading (Thailand) Union Hong Kong	Receivable from related parties Receivable from related parties Receivable from related parties	Yes Yes Yes	506,715 (US$ 16,500 thousand ) 92,130 (US$ 3,000 thousand ) 307,100 (US$ 10,000 thousand )	245,680 (US$ 8,000 thousand ) 92,130 (US$ 3,000 thousand ) 264,106 (US$ 8,600 thousand )	- 46,065 (US$ 1,500 thousand ) 264,106 (US$ 8,600 thousand )	- - -	2 2 2	- - -	Operating capital Operating capital Operating capital	- - -	- - -	- - -	12,704,842 (US$ 413,704 thousand ) (Note 7) 12,704,842 (US$ 413,704 thousand ) (Note 7) 12,704,842 (US$ 413,704 thousand ) (Note 7)	25,409,686 (US$ 827,408 thousand ) (Note 8) 25,409,686 (US$ 827,408 thousand ) (Note 8) 25,409,686 (US$ 827,408 thousand ) (Note 8)

(Continued)

57 -

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	$ 132,282 (RMB 30,000 thousand ) 44,094 (RMB 10,000 thousand )	$ 132,282 (RMB 30,000 thousand ) 44,094 (RMB 10,000 thousand )	$ 121,259 (RMB 27,500 thousand ) 5,732 (RMB 1,300 thousand )	1.51% 1.51%	2 2	$ - -	Operating capital Operating capital	$ - -	- -	$ - -	$ 185,569 (RMB 42,085 thousand ) (Note 9) 185,569 (RMB 42,085 thousand ) (Note 9)	$ 185,569 (RMB 42,085 thousand ) (Note 10) 185,569 (RMB 42,085 thousand ) (Note 10)
5	Jiangsu Union Logistics	ZhengJiang Union Chemical Panjin Union Chemical Panjin Union Materials	Receivable from related parties Receivable from related parties Receivable from related parties	Yes Yes Yes	242,517 (RMB 55,000 thousand ) 176,376 (RMB 40,000 thousand ) 44,094 (RMB 10,000 thousand )	- 176,376 (RMB 40,000 thousand ) 44,094 (RMB 10,000 thousand )	- 176,376 (RMB 40,000 thousand ) 30,866 (RMB 7,000 thousand )	1.51% 1.51% 1.51%	2 2 2	- - -	Operating capital, Operating capital Operating capital	- - -	- - -	- - -	246,511 (RMB 55,906 thousand ) (Note 11) 246,511 (RMB 55,906 thousand ) (Note 11) 246,511 (RMB 55,906 thousand ) (Note 11)	246,511 (RMB 55,906 thousand ) (Note 12) 246,511 (RMB 55,906 thousand ) (Note 12) 246,511 (RMB 55,906 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	1,300,773 (RMB 295,000 thousand ) 396,846 (RMB 90,000 thousand ) 1,234,632 (RMB 280,000 thousand ) 1,322,820 (RMB 300,000 thousand ) 330,705 (RMB 75,000 thousand ) 132,282 (RMB 30,000 thousand ) 352,752 (RMB 80,000 thousand ) 132,282 (RMB 30,000 thousand ) 132,282 (RMB 30,000 thousand )	948,021 (RMB 215,000 thousand ) 264,564 (RMB 60,000 thousand ) 1,014,162 (RMB 230,000 thousand ) 1,190,538 (RMB 270,000 thousand ) 198,423 (RMB 45,000 thousand ) 132,282 (RMB 30,000 thousand ) 352,752 (RMB 80,000 thousand ) 132,282 (RMB 30,000 thousand ) 132,282 (RMB 30,000 thousand )	903,927 (RMB 205,000 thousand ) 264,564 (RMB 60,000 thousand ) 899,518 (RMB 204,000 thousand ) 1,058,256 (RMB 240,000 thousand ) 52,913 (RMB 12,000 thousand ) - 88,188 (RMB 20,000 thousand ) - 44,094 (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	- - - - - - - - -	- - - - - - - - -	- - - - - - - - -	2,818,278 (RMB 639,153 thousand ) (Note 13) 2,818,278 (RMB 639,153 thousand ) (Note 13) 2,818,278 (RMB 639,153 thousand ) (Note 13) 2,818,278 (RMB 639,153 thousand ) (Note 13) 2,818,278 (RMB 639,153 thousand ) (Note 13) 2,818,278 (RMB 639,153 thousand ) (Note 13) 2,818,278 (RMB 639,153 thousand ) (Note 13) 2,818,278 (RMB 639,153 thousand ) (Note 13) 2,818,278 (RMB 639,153 thousand ) (Note 13)	5,636,556 (RMB 1,278,305 thousand ) (Note 14) 5,636,556 (RMB 1,278,305 thousand ) (Note 14) 5,636,556 (RMB 1,278,305 thousand ) (Note 14) 5,636,556 (RMB 1,278,305 thousand ) (Note 14) 5,636,556 (RMB 1,278,305 thousand ) (Note 14) 5,636,556 (RMB 1,278,305 thousand ) (Note 14) 5,636,556 (RMB 1,278,305 thousand ) (Note 14) 5,636,556 (RMB 1,278,305 thousand ) (Note 14) 5,636,556 (RMB 1,278,305 thousand ) (Note 14)
7	Sichung Logistics	Nanchong Unicizers	Receivable from related parties	Yes	154,329 (RMB 35,000 thousand )	154,329 (RMB 35,000 thousand )	142,865 (RMB 32,400 thousand )	1.51%	2	-	Operating capital	-	-	-	157,960 (RMB 35,823 thousand ) (Note 15)	157,960 (RMB 35,823 thousand ) (Note 16)

(Continued)

58 -

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	Zhuhai Unicizers Panjin Union Chemical Zhenjiang Union Chemical	Receivable from related parties Receivable from related parties Receivable from related parties	Yes Yes Yes	$ 440,940 (RMB 100,000 thousand ) 132,282 (RMB 30,000 thousand ) 132,282 (RMB 30,000 thousand )	$ 440,940 (RMB 100,000 thousand ) 132,282 (RMB 30,000 thousand ) 132,282 (RMB 30,000 thousand )	$ 220,470 (RMB 50,000 thousand ) - -	1.51% 1.51% 1.51%	2 2 2	$ - - -	Operating capital Operating capital Operating capital	$ - - -	- - -	$ - - -	$ 3,224,981 (RMB 731,388 thousand ) (Note 17) 3,224,981 (RMB 731,388 thousand ) (Note 17) 3,224,981 (RMB 731,388 thousand ) (Note 17)	$ 6,449,963 (RMB 1,462,776 thousand ) (Note 18) 6,449,963 (RMB 1,462,776 thousand ) (Note 18) 6,449,963 (RMB 1,462,776 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	396,846 (RMB 90,000 thousand ) 132,282 (RMB 30,000 thousand ) 132,282 (RMB 30,000 thousand )	264,564 (RMB 60,000 thousand ) 132,282 (RMB 30,000 thousand ) 132,282 (RMB 30,000 thousand )	- - -	1.51% 1.51% 1.51%	2 2 2	- - -	Operating capital Operating capital Operating capital	- - -	- - -	- - -	1,201,401 (RMB 272,464 thousand ) (Note 19) 1,201,401 (RMB 272,464 thousand ) (Note 19) 1,201,401 (RMB 272,464 thousand ) (Note 19)	2,402,802 (RMB 544,927 thousand ) (Note 20) 2,402,802 (RMB 544,927 thousand ) (Note 20) 2,402,802 (RMB 544,927 thousand ) (Note 20)
10	Panjin Union Logistics	Panjin Union Chemical	Receivable from related parties	Yes	88,188 (RMB 20,000 thousand )	88,188 (RMB 20,000 thousand )	44,094 (RMB 10,000 thousand )	1.51%	2	-	Operating capital	-	-	-	504,733 (RMB 114,468 thousand ) (Note 21)	1,009,466 (RMB 228,935 thousand ) (Note 22)
11	Panjin Union Materials	Panjin Union Chemical Panjin Union Logistics	Receivable from related parties Receivable from related parties	Yes Yes	617,316 (RMB 140,000 thousand ) 88,188 (RMB 20,000 thousand )	308,658 (RMB 70,000 thousand ) 88,188 (RMB 20,000 thousand )	154,329 (RMB 35,000 thousand ) -	1.51% 1.51%	2 2	- -	Operating capital Operating capital	- -	- -	- -	721,809 (RMB 163,698 thousand ) (Note 23) 721,809 (RMB 163,698 thousand ) (Note 23)	1,443,619 (RMB 327,296 thousand ) (Note 24) 1,443,619 (RMB 327,296 thousand ) (Note 24)
12	Panjin Union Chemical	Panjin Union Logistics	Receivable from related parties	Yes	88,188 (RMB 20,000 thousand )	-	-	1.51%	2	-	Operating capital	-	-	-	751,136 (RMB 170,349 thousand ) (Note 25)	1,502,272 (RMB 340,698 thousand ) (Note 26)
13	Taizhou Union Chemical	Taizhou Union Logistics Panjin Union Chemical Taizhou Union Plastics Nanchong Unicizers Zhuhai Unicizers	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	132,282 (RMB 30,000 thousand ) 264,564 (RMB 60,000 thousand ) 529,128 (RMB 120,000 thousand ) 264,564 (RMB 60,000 thousand ) 264,564 (RMB 60,000 thousand )	132,282 (RMB 30,000 thousand ) - 352,752 (RMB 80,000 thousand ) 132,282 (RMB 30,000 thousand ) 132,282 (RMB 30,000 thousand )	- - - 44,094 (RMB 10,000 thousand ) -	1.51% 1.51% 1.51% 1.51% 1.51%	2 2 2 2 2	- - - - -	Operating capital Operating capital Operating capital Operating capital Operating capital	- - - - -	- - - - -	- - - - -	1,280,165 (RMB 290,327 thousand ) (Note 27) 1,280,165 (RMB 290,327 thousand ) (Note 27) 1,280,165 (RMB 290,327 thousand ) (Note 27) 1,280,165 (RMB 290,327 thousand ) (Note 27) 1,280,165 (RMB 290,327 thousand ) (Note 27)	2,560,330 (RMB 580,653 thousand ) (Note 28) 2,560,330 (RMB 580,653 thousand ) (Note 28) 2,560,330 (RMB 580,653 thousand ) (Note 28) 2,560,330 (RMB 580,653 thousand ) (Note 28) 2,560,330 (RMB 580,653 thousand ) (Note 28)
																(Continued)

59 -

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
		Panjin Union Materials Zhongshang Unicizers Zhenjiang Union Chemical	Receivable from related parties Receivable from related parties Receivable from related parties	Yes Yes Yes	$ 88,188 (RMB 20,000 thousand ) 88,188 (RMB 20,000 thousand ) 132,282 (RMB 30,000 thousand ) $ 16,673,126	$ - 88,188 (RMB 20,000 thousand ) 132,282 (RMB 30,000 thousand ) $ 12,091,979	$ - - - $ 6,993,328	1.51% 1.51% 1.51%	2 2 2	$ - - - $ -	Operating capital Operating capital Operating capital	$ - - -	- - -	$ - - -	$ 1,280,165 (RMB 290,327 thousand ) (Note 27) 1,280,165 (RMB 290,327 thousand ) (Note 27) 1,280,165 (RMB 290,327 thousand ) (Note 27)	$ 2,560,330 (RMB 580,653 thousand ) (Note 28) 2,560,330 (RMB 580,653 thousand ) (Note 28) 2,560,330 (RMB 580,653 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 Logistics 11 for Panjin Union Materials. 12 for Panjin Union Chemical 13 for Taizhou 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 Logistics’ 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 Logistics’ net equity in latest financial statements which were audited or reviewed.

Note 23: 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 24: 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.

(Continued)

60 -

(Concluded)

Note 25: 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 26: 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.

Note 27: 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 28: 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.

61 -

TABLE 2

UPC TECHNOLOGY CORP.

ENDORSEMENTS/GUARANTEES PROVIDED FOR THE YEAR ENDED DECEMBER 31, 2022 (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 UPC Chemicals (Malaysia) Panjin Union Materials Panjin Union Chemical Union Hong Kong	b b b b b b	$ 13,382,874 (Note 3)	$ 614,200 (US$ 20,000 thousand) 3,408,466 (RMB 773,000 thousand) 1,535,500 (US$ 50,000 thousand) 1,417,622 (RMB 321,500 thousand) 4,629,870 (RMB 1,050,000 thousand) 698,878 (US$ 15,000 thousand) (EUR 7,281 thousand)	$ 614,200 (US$ 20,000 thousand) 2,813,197 (RMB 638,000 thousand) 1,535,500 (US$ 50,000 thousand) 1,137,625 (RMB 258,000 thousand) 3,527,520 (RMB 800,000 thousand) 698,878 (US$ 15,000 thousand) (EUR 7,281 thousand)	$ - 565,215 (RMB 128,184 thousand) 626 (MYR 90 thousand) 268,973 (RMB 61,000 thousand) 1,087,667 (RMB 246,670 thousand) 302,240 (US$ 2,084 thousand) (EUR 7,281 thousand)	$ - - - - - -	2.29% 10.51% 5.74% 4.25% 13.18% 2.61%	$ 40,148,622 (Note 3)	Y Y Y Y Y Y	N N N N N N	Y Y N Y Y N
1	Zhongshan Unicizers	Panjin Union Chemical	d	3,224,981 (Note 3)	3,528 (RMB 800 thousand)	3,528 (RMB 800 thousand)	-	-	0.05%	9,674,944 (Note 3)	Y	N	Y
2	Zhenjiang Union Chemical	Jiangsu Union Logistics	d	2,217,661 (Note 3)	6,614 (RMB 1,500 thousand)	6,614 (RMB 1,500 thousand)	1,891 (RMB 429 thousand)	-	0.15%	6,652,983 (Note 3)	N	N	Y
3	Panjain Union Materials	Panjin Union Chemical	d	721,809 (Note 3)	53,177 (RMB 12,060 thousand)	53,177 (RMB 12,060 thousand)	-	-	3.68%	2,165,428 (Note 3)	N	N	Y

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

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, Zhongshan Unicizers, Zhenjiang Union Chemical and Panjain Union Materials are allowed to provide is up to 150% of the net equity of the latest financial statements of the Company, Zhongshan Unicizers, Zhenjiang Union Chemical and Panjain Union Materials 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, Zhongshan Unicizers, Zhenjiang Union Chemical and Panjain Union Materials which were audited or reviewed.

62 -

TABLE 3

UPC TECHNOLOGY CORP.

MARKETABLE SECURITIES HELD DECEMBER 31, 2022

(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, 2022	December 31, 2022		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 U.D. ELECTRONIC CORP. 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. Mercury Electronic 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	With the same chairman `〃` The Company is its director 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 `〃` `〃` `〃`	143,262 99,803 4,923 7 3,214 19 517 123 15 739 6,931 10,950 447 306 2,577 9,217 4,848 2,006 11,811 8,855 4,950	$ 7,177,409 2,944,177 61,633 53 39,948 607 5,388 35,049 333 9,188 126,425 112,238 2,466 3,787 42,227 126,921 118,100 88,565 333,070 198,352 293,040	9.68 8.27 17.29 3.35 13.28 0.02 1.46 0.20 15.00 3.05 9.33 8.45 1.10 1.24 - 19.99 19.99 0.33 1.99 2.23 0.30	$ 7,177,409 2,944,177 61,633 53 39,948 607 5,388 35,049 333 9,188 126,425 112,238 2,466 3,787 42,227 126,921 118,100 88,565 333,070 198,352 293,040

(Continued)

63 -

Holding Company Name	Type and Name of Marketable Securities (Note 1)	Relationship with the Company (Note 2)	Financial Statement Account		December 31, 2022	December 31, 2022		Note
				Shares/Units (In Thousands)	Carrying Amount (Note 3)	Percentage of Ownership (%)	Fair Value
CHL	Domestic unlisted shares Harbinger Venture Management Co., Ltd. Mitac Incorporated Foreign unlisted shares Budworth	With the same chairman `〃`	Financial assets at FVTOCI - noncurrent `〃` `〃`	863 914 30	$ 19,286 51,123 6	19.99 0.22 3.33	$ 19,286 51,123 6

Note 1: Marketable Securities in this table are stocks, mutual funds and securities derived from these items under IFRS “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 Table 7 and Table 8 for the information of investments in subsidiaries and associates.

(Concluded)

64 -

TABLE 4

UPC TECHNOLOGY CORP.

MARKETABLE SECURITIES ACQUIRED OR DISPOSED OF AT COSTS OR PRICES OF AT LEAST NT$300 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE YEAR ENDED DECEMBER 31, 2022 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Company Name	Type And Name of Marketable Securities	Financial Statement Account	Counterparty	Nature of Relationship	Beginning Balance	Beginning Balance	Acquisition	Acquisition		Disposal	Disposal		Share of Profit and Loss of Investment	Change in Evaluation of Profit and Loss	Ending	Balance
					Shares/Units (In Thousands)	Amount	Shares/Units (Note)	Amount	Shares/Units (In Thousands)	Amount	Carrying Amount	Gain (Loss) on Disposal			Shares/Units (In Thousands)	Amount
The Company CHL Goldendust Prestige Spring (Note 5)	Shares CHL UPC Chemicals (Malaysia) Shares Goldendust Shares Zhongshang Unicizers Shares UPC Chemicals (Malaysia)	Investments accounted for using the equity method Investments accounted for using the equity method Investments accounted for using the equity method Investments accounted for using the equity method Investments accounted for using the equity method	Original capital contribution Original capital contribution Original capital contribution Original capital contribution Original capital contribution	Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary	471,304 - 87,208 (Note 2) 163,427	$ 25,895,473 - 7,640,518 6,713,635 1,680,833	21,000 163,427 (Note 5) 12,000 (Note 2) -	$ 609,442 1,838,838 344,950 344,950 -	58,994 (Note 4) - - - 163,427 (Note 5)	$ - - - - 1,838,838	$ 1,838,838 - - - 1,838,838	$ - - - - -	$ (1,657,934 ) (47,262 ) (874,279 ) (718,852 ) (50,967 )	$ 734,936 (Note 1) (29,528 ) (Note 3) 145,788 (Note 3) 126,632 (Note 3) 208,972 (Note 3)	433,310 163,427 99,208 (Note 2) -	$ 23,743,079 1,762,048 7,256,977 6,466,365 -

Note 1: The change in evaluation of profit and loss includes exchange differences on translating the financial statements of foreign operations of $732,556 thousand and unrealized gain on financial assets at fair value through other comprehensive income of $2,380 thousand.

Note 2: Limited company.

Note 3: The change in evaluation of profit and loss includes exchange differences on translating the financial statements of foreign operations.

Note 4: Proceeds from return of investment.

Note 5: Organizational restructuring, please refer to Note 10 for details.

65 -

TABLE 5

UPC TECHNOLOGY CORP.

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, 2022

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

Buyer/Seller	Related Party	Relationship			Transaction Details	Transaction Details	Abnormal Transaction	Abnormal Transaction	Notes/Accounts Receivable (Payable)	Notes/Accounts Receivable (Payable)	Note
			Purchase/ Sale	Amount	% of Total	Payment Terms	Unit Price	Payment Terms	Ending Balance	% of Total
The Company Zhongshan Unicizers Taizhou Union Chemical Zhuhai Unicizers Zhenjiang Union Chemical Panjin Union Chemical Nanchong Unicizers UPC Chemicals (Malaysia) Union Hong Kong	Zhenjiang Union Chemical Taizhou Union Chemical Zhuhai Unicizers Panjin Union Chemical The Company Zhenjiang Union Chemical Zhenjiang Union Chemical Taizhou Union Plastics Panjin Union Chemical Nanchong Unicizers The Company Zhongshan Unicizers UPC Chemicals (Malaysia) The Company Taizhou Union Chemical Zhuhai Unicizers Nanchong Unicizers The Company Zhenjiang Union Chemical Taizhou Union Chemical Zhuhai Unicizers Zhenjiang Union Chemical UPCM Chemicals (Thailand) UPCM Chemicals (Vietnam) Zhongshan Unicizers Taizhou Union Chemical Zhuhai Unicizers Panjin Union Chemical Panjin Union Materials 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 Sale Sale Sale Sale Sale Sale Sale Sale	$ (205,093) (311,716) (213,893) (534,833) (117,630) (123,755) (245,883) (191,388) (203,041) (225,897) (222,732) (1,444,403) (194,443) (177,293) (331,904) (240,075) (138,258) (186,753) (2,354,881) (123,823) (701,525) (340,695) (647,047) (871,286) (153,773) (5,849,577) (1,619,501) (170,575) (193,374) (2,777,068)	(3.73) (5.66) (3.89) (9.72) (2.17) (2.28) (2.50) (1.95) (2.06) (2.30) (1.65) (10.73) (1.44) (1.20) (2.24) (1.62) (0.93) (1.59) (20.06) (1.05) (5.98) (9.47) (11.59) (15.60) (1.42) (54.17) (15.00) (1.58) (1.79) (25.72)	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 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 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 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 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 120 days, may be adjusted depending on the situation 120 days, may be adjusted depending on the situation			$ 11,493 14,479 28,256 165,596 15,513 - 11,792 - - 79,149 20,981 39,785 - 14,313 7,087 - 6,530 - 642,456 - 19,288 4,096 138,328 184,912 37,629 376,511 151,721 - 76,406 464,900	2.20 2.77 5.41 31.71 6.12 - 2.00 - - 13.40 2.73 5.17 - 1.73 0.86 - 0.79 - 90.45 - 2.72 2.59 22.63 30.25 3.33 33.33 13.43 - 6.76 41.16

66 -

TABLE 6

UPC TECHNOLOGY CORP.

RECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL DECEMBER 31, 2022

(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 Panjin Union Chemical UPC Chemicals (Malaysia) Union Hong Kong Glory Ace CHL Zhongshan Unicizers Zhenjiang Union Chemical Taizhou Union Plastics Jiangsu Union Logistics	Panjin Union Chemical Zhenjiang Union Chemical UPCM Trading (Thailand) UPCM Trading (Vietnam) Taizhou Union Chemical Zhuhai Unicizers UPC Chemicals (Malaysia) Union Hong Kong Union Hong Kong Zhuhai Unicizers 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 Panjin Union Chemical	Entity that the Company directly or indirectly invests in `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃`	Trade receivables $ 165,596 Trade receivables 157,422 Trade receivables 138,328 Trade receivables 184,912 Trade receivables 376,511 Trade receivables 151,721 Trade receivables 464,900 Other receivables 598,845 Other receivables 264,106 Other receivables 222,737 Other receivables 132,282 Other receivables 573,418 Other receivables 198,423 Other receivables 730,417 Other receivables 154,329 Other receivables 1,058,256 Other receivables 264,564 Other receivables 899,518 Other receivables 903,927 Other receivables 176,376	4.77 29.26 5.24 5.36 11.76 6.98 8.10 - - - - - - - - - - - - -	$ - - - - - - - - - - - - - - - - - - - -	- - - -	$ 136,582 156,423 100,420 121,822 376,511 64,055 283,508 - - 198,423 88,188 220,470 - - - - - - - -	$ - - - - - - - - - - - - - - - - - - - -
								(Continued)

67 -

Company Name	Related Party	Relationship	Ending Balance	Turnover Rate	Overdue	Overdue	Amount Received in Subsequent Period (Note)	Allowance for Impairment Loss
					Amount	Actions Taken
Guangdong Union Logistics Panjin Union Materials Sichung Logistics Panjin Union Chemical	Zhuhai Unicizers Panjin Union Chemical Nanchong Unicizers Zhenjiang Union Chemical	`〃` `〃` `〃` `〃`	Other receivables $ 121,259 Other receivables 167,710 Other receivables 142,865 Notes receivable 485,034	- - - -	$ - - - -	- -	$ 11,024 78,580 - -	$ - - - -

Note: It was the amount received as of March 15, 2023.

(Concluded)

68 -

TABLE 7

UPC TECHNOLOGY CORP.

INFORMATION ON INVESTEES FOR THE YEAR ENDED DECEMBER 31, 2022 (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, 2022	As of December 31, 2022	As of December 31, 2022	Net Income (Loss) of the Investee	Share of Profit (Loss)	Note
				December 31, 2022	December 31, 2021	Number of Shares (In Thousands)	%	Carrying Amount
The Company CHL UVC	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 Prestige Spring Union Hong Kong Harbinger Ruyi Inno Strategy	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 Tortola, British Virgin Islands	Investment Trading Investment `〃` `〃` Manufacturing and selling of PLASTICIZERS and PA Investment `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` Trading Investment Investment	$ 13,127,287 128,451 250,013 160,000 453,525 1,838,838 (Note 3) 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 (Note 3) 913,293 30,465 (Note 4)	$ 14,356,683 128,451 250,013 160,000 453,525 - 1,348 2,725,625 3,278,180 919,533 217,544 763,540 972,950 88,755 87,960 711,773 1,435,059 965,857 1,297,157 922,434 150,500 1,251,836 913,293 30,465 3,075	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 30,351 5,000 - 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 - 100.00 28.57 -	$ 23,743,079 599,874 393,390 295,300 1,385,027 1,762,048 279,610 7,256,977 4,200,036 2,069,422 422,644 804,135 1,295,577 259,245 195,667 1,444,416 684,569 1,023,628 1,470,501 355,477 160,248 - 1,149,931 22,979 -	$ (1,657,934) (48) (25,567) 34,070 84,253 (98,229) (44,923) (874,279) (165,740) (73,493) (103,715) 96,296 10,856 12,805 10,151 (56,998) (214,833) 14,234 (180,122) (109,237) 1,957 (50,967) 71,692 465 478	$ (1,657,934) (48) (25,567) 34,070 84,253 (47,262)	Subsidiary `〃` `〃` `〃` `〃` `〃` Subsidiary `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` Subsidiary’s investee company under the equity method Subsidiary

(Continued)

69 -

Investor Company	Investee Company	Location	Main Businesses and Products	Original Investment Amount	Original Investment Amount	As of December 31, 2022	As of December 31, 2022	As of December 31, 2022	Net Income (Loss) of the Investee	Share of Profit (Loss)	Note
				December 31, 2022	December 31, 2021	Number of Shares (In Thousands)	%	Carrying Amount
Star Bright Prestige Spring UPC Chemicals (Malaysia)	Logical Path Ltd. UPC Chemicals (Malaysia) UPCM Trading (Thailand) UPCM Trading (Vietnam)	Tsimshatsui Kowloon, Hong Kong Selangor, Malaysia Bangkok, Thailand Ho Chi Minh City Vietnam	Investment Manufacturing and selling of PLASTICIZERS and PA Trading Trading	$ 37 (Note 3) 28,905 17,867	$ 37 1,251,836 28,905 17,867	10 - 30,000 (Note 2)	100.00 - 100.00 100.00	$ 279,601 - 8,896 12,305	$ (44,923) (98,229) (8,093) (21,485)		Subsidiary Subsidiary Subsidiary Subsidiary

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

Note 2: Limited company.

Note 3: After the Company acquired UPC Chemicals (Malaysia) from Prestige Spring in November 2022, CHL merged the equity of Prestige Spring, and Prestige Spring dissolved in the merger.

Note 4: The Group completed the liquidation of Inno Strategy in December 2022.

(Concluded)

70 -

TABLE 8

UPC TECHNOLOGY CORP.

INFORMATION ON INVESTMENTS IN MAINLAND CHINA FOR THE YEAR ENDED DECEMBER 31, 2022 (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, 2022	Investment Flows	Investment Flows	Accumulated Outflow of Investment from Taiwan as of December 31, 2022	Percentage of Ownership (%)	Net Income (Loss) of the Investee Company	Share of Profits/Losses (Note 2)	Carrying Amount as of December 31, 2022	Accumulated Repatriation of Investment Income as of December 31, 2022
						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	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	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	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$ 62,000 thousand	b. b. b. b. b. b. b. b. b. c. b. b. b.	$ 2,139,461 543,823 - 466,785 648,157 3,068,081 88,755 87,960 1,435,059 - 965,857 1,297,157 922,434	$ 344,950 - - - - - - - 59,462 - - 205,030 -	$ - - - - - - - - - - - - -	$ 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	$ (718,852) (175,864) (583,949) 21,756 96,296 (222,739) 12,805 10,151 (445,158) (3,925) 14,234 (180,122) (222,933)	$ (718,852) b.2) (175,864) b.2) (583,949) b.2) 21,756 b.2) 96,296 b.2) (222,739) b.2) 12,805 b.2) 10,151 b.2) (445,158) b.2) (3,925) b.2) 14,234 b.2) (180,122) b.2) (222,933) b.2)	$ 6,466,365 4,452,886 2,279,227 2,581,974 804,134 5,644,451 259,245 195,664 1,461,862 235,814 1,023,628 1,470,501 733,601	$ - - - - - - - - - - - - -
													(Continued)

71 -

Investor Company	Investee Company	Investee Company	Main Businesses and Products	Total Amount of Paid-in Capital	Total Amount of Paid-in Capital	Method of Investment (Note 1)	Accumulated Outflow of Investment from Taiwan as of January 1, 2022	Investment Flows	Investment Flows	Accumulated Outflow of Investment from Taiwan as of December 31, 2022	Percentage of Ownership (%)	Net Income (Loss) of the Investee Company	Share of Profits/Losses (Note 2)	Carrying Amount as of December 31, 2022	Accumulated Repatriation of Investment Income as of December 31, 2022
								Outflow	Inflow
Faithouse Taizhou Union Plastics	Sichung Logistics Panjin Union Plastics		Logistics Manufacturing and selling of VCM	US$ 5,000 thousand RMB 4,000 thousand		b. c.	$ - -	$ - -	$ - -	$ - -	100 100	$ 1,957 129	$ 1,957 b.2) 129 b.2)	$ 159,907 17,771	$ - -

Accumulated Outward Remittance for Investment in Mainland China as of December 31, 2022		Investment Amount Authorized by Investment Commission, MOEA			Upper Limit on Amount of Investment Stipulated by the Investment Commission, MOEA
$12,272,971 (Note 3)		$15,208,453 (US$495,228.04 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, 2022:

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, 2022 is US$1=NT$30.71. 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.

(Concluded)

72 -

TABLE 9

UPC TECHNOLOGY CORP.

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, 2022 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Sales transactions

Price and Payment Terms Investee Company Activities in the Third Area Comparison with Normal Transactions Zhenjiang Union Chemical - The terms of transaction are the same as general business practices Zhuhai Unicizers - `〃` Panjing Union Chemical - `〃` Taizhou Union Chemical - `〃` Purchase transactions Price and Payment Terms Investee Company Activities in the Third Area Comparison with Normal Transactions Zhenjiang Union Chemical - The terms of transaction are the same as general business practices Zhuhai Unicizers - `〃` Panjing Union Chemical - `〃` Zhongshan Unicizers - `〃`	Sales	Unrealized % Gain on Sale 3.73 $ - 3.89 - 9.72 - 5.66 - Purchases Price % $ 177,293 4.12 222,732 5.18 186,753 4.34 117,630 2.74	Ending Notes/Trade Receivable
	Price $ 205,093 213,893 534,833 311,716		Balance % $ 11,493 2.20 28,256 5.41 165,596 31.71 14,479 2.77 Ending Notes/Trade Payable
			Balance % $ 14,313 4.08 20,981 5.98 - - 15,513 4.42

Purchase transactions
Transactions of endorsements/guarantees (refer to Note 28 and Table 2)
73 -

TABLE 10

UPC TECHNOLOGY CORP.

INFORMATION OF MAJOR SHAREHOLDERS DECEMBER 31, 2022

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	31.35 5.09

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 1,355,206,607 shares.
74 -

UPC TECHNOLOGY CORP.

THE CONTENTS OF STATEMENTS OF MAJOR ACCOUNTING ITEMS

Item
Major Accounting Items in Assets, Liabilities and Equity
Statement of cash
Statement of trade receivables
Statement of inventories
Statement of changes in financial assets at fair value through other comprehensive
income - non-current
Statement of changes in investments accounted for using the equity method
Statement of changes in property, plant and equipment
Statement of changes in accumulated depreciation of property, plant and equipment
Statement of deferred tax assets
Statement of trade payables
Statement of other payables
Statement of long-term borrowings
Statement of bonds payable
Statement of deferred tax liabilities
Major Accounting Items in Profit or Loss
Statement of operating revenue
Statement of operating costs
Statement of operating expenses
Statement of other gains and losses
Statement of finance costs
Statement of employee benefits, depreciation and amortization by function

**Statement Index **

1
2
3
4
5
Note 11
Note 11
Note 22
6
Note 17
Note 14
Note 15
Note 22
7
8
9
Note 21
Note 21
Note 21

75 -

STATEMENT 1

UPC TECHNOLOGY CORP.

STATEMENT OF CASH DECEMBER 31, 2022 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Item Cash on hand Demand deposits Foreign currency deposits - mainly including US$1,760 thousand and RMB6,007 thousand (Note) Checking accounts	Amount $ 167 42,101 80,517 34,926 $ 157,711

Note: US$1=NT$30.71. RMB1=NT$4.409.

76 -

STATEMENT 2

UPC TECHNOLOGY CORP.

STATEMENT OF TRADE RECEIVABLES DECEMBER 31, 2022 (In Thousands of New Taiwan Dollars)

Customer Number 032 012 029 007 Others (Note) Less: Allowance for impairment loss	Amount $ 28,256 51,970 165,596 35,410 219,989 (2,098) $ 499,123

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

77 -

STATEMENT 3

UPC TECHNOLOGY CORP.

STATEMENT OF INVENTORIES DECEMBER 31, 2022 (In Thousands of New Taiwan Dollars)

Item Finished goods Semi-finished goods Work in progress Raw materials Supplies Inventory in transit Less: Allowance for loss		Amount
		Cost Net Realizable Value $ 437,756 $ 453,093 67,738 66,357 19,122 19,783 234,054 239,995 28,714 29,583 447,638 461,189 1,235,022 $ 1,270,000 (17,106) $ 1,217,916

78 -

STATEMENT 4

UPC TECHNOLOGY CORP.

STATEMENT OF CHANGES IN FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME - NON-CURRENT FOR THE YEAR ENDED DECEMBER 31, 2022

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

Investees Domestic listed companies Lien Hwa Industrial Holdings Corp. MiTAC Holdings Corporation Domestic unlisted companies Lienhwa United LPG Harbinger Venture Capital Corp. Harbinger VI Venture Capital Corp.	Balance, January 1, 2022 Shares (In Thousands) Amount 136,440 $ 8,445,617 99,803 3,513,051 11,958,668 4,923 59,073 7 56 3,214 34,517 93,646 $ 12,052,314	Additions in Investment (Note 2) Shares (In Thousands) Amount 6,822 $ - - - - - - - - - - - $ -	Unrealized Gains (Losses) on Financial Assets at Fair Value Decrease in Investment Shares (In Thousands) Amount - $ - $ (1,268,208) - - (568,874) - (1,837,082) - - 2,560 - - (3) - - 5,431 - 7,988 $ - $ (1,829,094)	Balance, December 31, 2022 Shares (In Thousands) Amount Collateral 143,262 $ 7,177,409 No 99,803 2,944,177 No 10,121,586 4,923 61,633 No 7 53 No 3,214 39,948 No 101,634 $ 10,223,220
	Shares (In Thousands) 136,440 99,803 4,923 7 3,214	Shares (In Thousands) 6,822 - - - -	Shares (In Thousands) - - - - -	Shares (In Thousands) 143,262 99,803 4,923 7 3,214

Note 1: A par value is $10.

Note 2: Addition in investment was due to issuance of share dividends.

79 -

STATEMENT 5

UPC TECHNOLOGY CORP.

STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD FOR THE YEAR ENDED DECEMBER 31, 2022 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Investees Unlisted companies CHL Glory Ace UVC WCI TUI UPC Chemicals (Malaysia)	Balance, January 1, 2022 Shares (In Thousands) Amount 471,304 $ 25,895,473 605 540,732 22,701 348,054 16,000 361,651 78,719 1,962,503 - - $ 29,108,413	Additions in Investment (Note 2) Shares (In Thousands) Amount 21,000 $ 609,442 - - - - - - - - 163,427 1,838,838 $ 2,448,280	Decrease in Investment (Note 3) Exchange Differences on Translating the Other Shares (In Thousands) Amount Share of Profit and Loss Financial Statements Comprehensive Income (Loss) (58,994) $ (1,838,838) $ (1,657,934) $ 732,556 $ 2,380 - - (48) 59,190 - - (8,089) (25,567) 1,250 77,742 - (18,239) 34,070 - (82,182) - (410,123) 84,253 - (251,606) - - (47,262) (29,528) - $ (2,275,289) $ (1,612,488) $ 763,468 $ (253,666)	Balance, December 31, 2022 Market Value Shares (In Thousands) % Amount or Net Assets Value 433,310 100 $ 23,743,079 $ 23,743,079 605 100 599,874 599,874 22,701 100 393,390 393,390 16,000 100 295,300 295,300 78,719 100 1,385,027 1,385,027 163,427 100 1,762,048 1,762,048 $ 28,178,718 $ 28,178,718
	Shares (In Thousands) 471,304 605 22,701 16,000 78,719 -	Shares (In Thousands) 21,000 - - - - 163,427	Shares (In Thousands) (58,994) - - - - -	Shares (In Thousands) % 433,310 100 605 100 22,701 100 16,000 100 78,719 100 163,427 100

Note 1: A par value is $10, except for CHL and Glory Ace, whose par value is US$1 and UPC Chemicals (Malaysia) whose par value is MYR1.

Note 2: The increase in CHL was due to the increase in investment; the increase in UPC Chemicals (Malaysia) was due to the organizational restructuring.

Note 3: Decrease in investment was due to capital reduction and return of shares and cash dividends paid.

80 -

STATEMENT 6

UPC TECHNOLOGY CORP.

STATEMENT OF TRADE PAYABLES DECEMBER 31, 2022 (In Thousands of New Taiwan Dollars)

Vendor Number L A1 A5 A4 Others (Note)	Amount $ 219,415 67,364 20,981 15,513 27,624 $ 350,897

Note: The amount of individual vendor in others does not exceed 5% of the account balance.

81 -

STATEMENT 7

UPC TECHNOLOGY CORP.

STATEMENT OF OPERATING REVENUE FOR THE YEAR ENDED DECEMBER 31, 2022 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Item Quantities (Metric Tons) Sale of goods Plasticizers 77,601 Anhydrides 17,010 Others 21,036 Gross sales Less: Sales return and allowance Net sales	Amount $ 3,701,498 615,652 1,196,393 5,513,543 (9,875) $ 5,503,668

82 -

STATEMENT 8

UPC TECHNOLOGY CORP.

STATEMENT OF OPERATING COSTS FOR THE YEAR ENDED DECEMBER 31, 2022 (In Thousands of New Taiwan Dollars)

Item
Raw materials used
Raw materials, beginning of year - including inventory in transit

Raw material purchased
Raw material sold
Others
Raw materials, end of year - including inventory in transit

Direct labor
Manufacturing expenses

Manufacturing cost
Work in progress and semi-finished goods, beginning of year
Work in progress and semi-finished goods, end of year

Cost of finished goods
Finished goods, beginning of year
Finished goods purchased
Others
Finished goods, end of year

Unallocated fixed production overhead
Inventory write-downs
Cost of raw material sold
Revenue from sale of scraps

Cost of goods sold

Amount
$ 912,050
3,401,707
(13,962)
(1,502)

(681,692)
3,616,601
70,020

411,476
4,098,097
99,076

(86,860)
4,110,313
557,800
915,179
(1,467)

(437,756)
5,144,069
106,616
4,581
13,962

(575)
$ 5,268,653

83 -

STATEMENT 9

UPC TECHNOLOGY CORP.

STATEMENT OF OPERATING EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2022 (In Thousands of New Taiwan Dollars)

Item Salaries - including bonuses, employee benefits and pension Labor and health insurance Remuneration of directors Exporting expense - including export ocean freight charge, harbor construction fee and customs clearance fee Inland freight charge Depreciation and amortization Professional fee Others (Note 2)	Selling Expenses General and Administrative Expenses $ 6,912 $ 148,223 670 10,558 - 6,596 125,478 - 35,468 - 642 21,616 - 14,627 6,665 31,978 $ 175,835 $ 233,598	Total $ 155,135 11,228 6,596 125,478 35,468 22,258 14,627 38,643 $ 409,433

Note 1: The calculation basis of this statement is consistent with the basis of employee benefits expense.

Note 2: The expected credit gain of $2,991 thousand was included.

84 -

Bank deposits b. Other income Operating lease rental income Dividends Commission income Indemnity income (Note 29) Others	For the Year Ended	For the Year Ended	December 31
	2022 $ 299 For the Year Ended		2021 $ 25 December 31
		2022 $ 79,008 449,283 7 266,785 92 $ 795,175	2021 $ 78,737 314,750 85 80,063 - $ 473,635

AI assistant

UPC — Audit Report / Information 2022

51771_rns_2022-11-09_1a81d4e4-2db1-4749-ac24-29f932c6b24c.pdf

UPC Technology Corp.

INDEPENDENT AUDITORS’ REPORT

Opinion

Basis for Opinion

Key Audit Matters

Recognition of Operating Revenue

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

Auditors’ Responsibilities for the Audit of the Financial Statements

Notice to Readers

UPC TECHNOLOGY CORP.

BALANCE SHEETS DECEMBER 31, 2022 AND 2021 (In Thousands of New Taiwan Dollars)

UPC TECHNOLOGY CORP.

STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021 (In Thousands of New Taiwan Dollars, Except (Losses) Earnings Per Share)

UPC TECHNOLOGY CORP.

STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021 (In Thousands of New Taiwan Dollars, Except (Losses) Earnings Per Share)

UPC TECHNOLOGY CORP.

STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021 (In Thousands of New Taiwan Dollars)

UPC TECHNOLOGY CORP.

STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021 (In Thousands of New Taiwan Dollars)

UPC TECHNOLOGY CORP.

STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021 (In Thousands of New Taiwan Dollars)

UPC TECHNOLOGY CORP.

1. GENERAL

2. APPROVAL OF FINANCIAL STATEMENTS

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

New, Amended and Revised Standards and Interpretations

Effective Date Announced by IASB (Note 1)

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

b. Basis of preparation

d. Foreign currencies

e. Inventories

g. Property, plant and equipment

1) Financial assets

Revenue from the sale of goods

m. Leases

1) The Company as lessor

2) The Company as lessee

o. Employee benefits

1) Short-term employee benefits

p. Share-based payment arrangements

1) Current tax

5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

6. CASH

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

8. NOTES RECEIVABLE AND TRADE RECEIVABLES

December 31, 2022

9. INVENTORIES

10. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

11. PROPERTY, PLANT AND EQUIPMENT

12. LEASE ARRANGEMENTS

a. Right-of-use assets

b. Lease liabilities

d. Other lease information

13. OTHER ASSETS

14. BORROWINGS

15. BONDS PAYABLE

16. NOTES PAYABLE AND TRADE PAYABLES

17. OTHER LIABILITIES

19. RETIREMENT BENEFIT PLANS

a. Defined contribution plans

b. Defined benefit plans

20. EQUITY

a. Ordinary shares

b. Capital surplus

c. Retained earnings and dividends policy

d. Special reserve

e. Other equity items

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

21. NET (LOSS) PROFIT

e. Depreciation and amortization

Directors

Managers

22. INCOME TAXES

a. Income tax recognized in profit or loss

b. Income tax recognized in other comprehensive income

c. Current tax assets and liabilities

d. Deferred tax assets and liabilities

UPC Audit Report / Information 2022