WUS — Annual Report 2023

Nov 30, 2023

WUS Printed Circuit Co., Ltd. and Subsidiaries

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

The reader is advised that these financial statements have been prepared originally in Chinese. In the event of a conflict between these financial statements and the original Chinese version or difference in interpretation between the two versions, the Chinese language financial statements shall prevail.

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REPRESENTATION LETTER

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

Very truly yours,

WUS Printed Circuit Co., Ltd.

By

HSU, HUAN-CHUNG Chairman March 26, 2024

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INDEPENDENT AUDITORS'REPORT

WUS Printed Circuit Co., Ltd.

Opinion

We have audited the accompanying consolidated financial statements of WUS Printed Circuit Co., Ltd. (the “Company”) and its subsidiaries, which comprise the consolidated balance sheets as of December 31, 2023 and 2022, and the consolidated statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies (collectively referred to as the “consolidated financial statements”).

In our opinion, based on our audits and the reports of other auditors (refer to the Other Matter paragraph) the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Company and its subsidiaries as of December 31, 2023 and 2022, and their consolidated financial performance and their consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) endorsed and issued into effect by the Financial Supervisory Commission (FSC) of the Republic of China.

Basis for Opinion

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

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Key Audit Matters

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

The key audit matters identified in the Company and its subsidiaries’ consolidated financial statements for the year ended December 31, 2023 are stated as follows:

Occurrence of revenue from major customers

The revenue of the Company and its subsidiaries are concentrated in the top ten customers, accounting for 69% of the overall revenue. Due to the concentration of orders, the major customers may have a dominant position. And considering that the market sentiment continues to decline this year, we have listed the occurrence of sales revenue from specific customers whose sales situation is different from the market sentiment trend as a key audit matter.

Our audit procedure performed included the following regarding the revenue of the above-mentioned customers:

1. Understand revenue processes and internal control systems, and test the effectiveness of identified critical controls.

2. Obtain the annual revenue details and check their completeness, screen out the

3. revenue details of the above customers and select samples.

4. Check whether the oringal order for the selected sample is properly approved by the responsible officer.

5. Verify that the related shipment documents of the selected sample are consistent with the item and amount of original order, so as to test the authenticity of the revenue.

6. Understand the payment recovery situation of the selected sample, and verify whether collection object of the accounts receivable is the same as the sales object.

Other Matter

The financial statements of Wus Printed Circuit (KunShan) Co., Ltd., an investment company using the equity method included in consolidated financial statements of the Company and its subsidiraries was audited by other auditor. Therefore, our opinion on the amounts and disclosures of such investments included in the accompanying financial statements were based on the financial statements audited by other auditors. Such investments accounted for using the equity method amounted to NT$5,025,718 thousand and NT$4,586,869 thousand, representing both 35% of the Company and its subsidiaries’ total assets as of December 31, 2023 and 2022, respectively; and the share of the profit of these associates amounted to NT$860,605 thousand and NT$774,758 thousand, representing 71% and 119% of the Company and its subsidiaries’ total comprehensive income for the years ended December 31, 2023 and 2022,

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respectively.

We have also audited the standalone financial statements of the Company as of and for the years ended December 31, 2023 and 2022 on which we have issued an unmodified opinion with other matter paragraph.

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

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

In preparing the consolidated financial statements, management is responsible for assessing the Company and its subsidiaries’ 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 and its subsidiaries 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 and its subsidiaries’ financial reporting process.

Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements

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

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

1. Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not

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detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• 2 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company and its subsidiaries’ 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 and its subsidiaries’ ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Company and its subsidiaries to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

• Obtain sufficient and appropriate audit evidence regarding the financial information of entities or business activities within the Company and its subsidiaries to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision, and performance of the Company and its subsidiaries’ audit. We remain solely responsible for our audit opinion.

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

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

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

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communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partners on the audit resulting in this independent auditors' report are Yu Hsiang Liu and Lee-Yuan Kuo.

Deloitte & Touche Taipei, Taiwan Republic of China March 26, 2024

Notice to Readers

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

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

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WUS Printed Circuit Co., Ltd. and Subsidiaries CONSOLIDATED BALANCE SHEETS

(In Thousands of New Taiwan Dollars)

ASSETS CURRENT ASSETS Cash and cash equivalents（Note 4 and 6） Financial assets at fair value through profit or loss - current（Note 4 and 7） Accounts receivable, net（Note 4、9 and 21） Accounts receivable from related parties（Note 4、9、21 and 28） Other receivables（Note 9 and 28） Current tax assets（Note 23） Inventories, net（Note 4、5 and 10） Prepayments Other financial assets - current（Note 11） Other current assets Total current assets NON-CURRENT ASSETS Financial assets at fair value through other comprehensive income - non-current（Note 4 and 8） Investments accounted for using the equity method（Note 4 and 13） Property, plant and equipment（Note 4、5、14、28、29 and 30） Right-of-use assets（Note 4 and 15） Intangible assets（Note 4） Deferred tax assets（Note 4 and 23） Refundable Deposits Other financial assets - non-current（Note 11 and 29） Total non-current assets TOTAL LIABILITIES AND EQUITY CURRENT LIABILITIES Short-term borrowings（Note 16） Short-term notes and bills payable（Note 16） Current contract liabilities（Note 4 and 21） Accounts payable（Note 17 and 28） Other payables（Note 18 and 28） Current tax liabilities（Note 23） Lease liabilities - current（Note 4 and 15） Current portion of long-term borrowings（Note 16 and 29） Current refund liabilities（Note 4） Other current liabilities Total current liabilities NON-CURRENT LIABILITIES Long-term borrowings（Note 16 and 29） Liability provisions – non-current（Note 4） Deferred tax liabilities（Note 4、5 and 23） Lease liabilities - non-current（Note 4 and 15） Net defined benefit liability（Note 4 and 19） Deposits received Total noncurrent liabilities Total liabilities EQUITY ATTRIBUTABALE TO OWNERS OF THE COMPANY（Note 4 and 20） Ordinary shares Capital surplus Retained earnings Legal reserve Special reserve Unappropriated earnings Total retained earnings Other equity Treasury shares Total equity TOTAL		December 31,2023 Amount ％ $ 1,980,613 14 307,839 2 848,499 6 37,603 - 91,733 1 737 - 821,749 6 81,766 - 1,150,057 8 4,273 - 5,324,869 37 166,116 1 5,050,071 35 2,396,991 17 92,620 1 1,599 - 131,245 1 602 - 1,150,260 8 8,989,504 63 $ 14,314,373 100 $ 865,000 6 399,751 3 126,390 1 345,869 3 468,097 3 101,196 1 8,623 - 619,759 4 41,210 - 16,683 - 3,101,578 21 1,547,072 11 182 - 736,331 6 76,783 - 58,399 - 57 - 2,418,824 17 5,429,402 38 1,827,405 13 453,330 3 934,326 7 1,899,580 13 4,442,030 31 7,275,936 51 578,683) ( 4) 93,017) ( 1) 8,884,971 62 $ 14,314,373 100	December 31,2022
	( (		Amount ％ $ 766,331 7 294,358 2 977,399 7 62,982 - 139,108 1 737 - 1,033,718 8 116,170 1 1,698,766 13 3,958 - 5,093,527 39 128,259 1 4,586,869 35 2,621,850 20 102,157 1 1,591 - 160,178 1 355 - 418,160 3 8,019,419 61 $ 13,112,946 100 $ 384,000 3 349,279 3 131,625 1 508,583 4 528,123 4 26,653 - 9,035 - 548,462 5 38,499 - 21,029 - 2,545,288 20 1,647,654 13 254 - 690,661 5 84,804 1 101,989 1 61 - 2,525,423 20 5,070,711 40 1,827,405 14 378,706 3 877,928 7 1,899,580 14 3,735,597 27 6,513,105 48 ( 583,964) ( 4) ( 93,017) ( 1) 8,042,235 60 $ 13,112,946 100

The accompanying notes are an integral part of the consolidated financial statements. (With Deloitte & Touche auditors’ report dated March 26, 2024)

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WUS Printed Circuit Co., Ltd. and Subsidiaries CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

OPERATING REVENUE（Note 4、21 and 28） Net sales revenue Other operating revenue, net Total operating revenue OPERATING COSTS（Note 10、19、 22 and 28） GROSS PROFIT(LOSS) OPERATING EXPENSES（Note 9、 19 and 22） Selling and marketing expenses General and administrative expenses Research and development expenses Expected credit loss (gain) Total operating expenses LOSS FROM OPERATIONS NON-OPERATING INCOME AND EXPENSES（Note 13 and 22） Interest income Other income Other gains and losses Finance costs Share of the profit of associates PROFIT BEFORE INCOME TAX INCOME TAX EXPENSE（Note 4 and 23） NET PROFIT FOR THE YEAR		For the Year Ended	For the Year Ended	December 31
		2023		2022
			Amount ％ $ 5,095,194 99 37,521 1 5,132,715 100 4,951,564 96 181,151 4 137,798 3 243,545 5 46,806 1 560 - 428,709 9 ( 247,558) ( 5) 81,176 2 3,455 - 74,204 1 ( 37,685 ) ( 1 ) 774,758 16 895,908 18 648,350 13 137,763 3 510,587 10 （Continued）

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OTHER COMPREHENSIVE INCOME (LOSS)（Note 19、20 and 23） Items that will not be reclassified subsequently to profit or loss: Remeasurement of defined benefit plans Unrealized gains (losses) on investments in equity instruments at fair value through other comprehensive income Share of other comprehensive income (loss) of associates 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 translation of the financial statements of foreign operations Income tax relating to items that may be reclassified subsequently to profit or loss Other comprehensive income for the year (net of income tax) TOTAL COMPREHENSIVE INCOME FOR THE YEAR NET PROFIT (LOSS) ATTRIBUTABLE TO: Owners of the Company TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO: Owners of the Company EARNINGS PER SHARE（Note 24） Basic Diluted	For the Year Ended December 31	For the Year Ended December 31
	2023 Amount ％ $ 18,528 1 37,857 1 35,037 1 ( 3,706 ) - ( 79,800 ) ( 2 ) 15,960 - 23,876 1 $ 859,482 25 $ 835,606 $ 859,482 $ 4.61 $ 4.60	2022
		Amount ％ $ 66,741 1 ( 68,727 ) ( 1 ) ( 57,925 ) ( 1 ) ( 13,348 ) - 92,925 2 ( 18,585) - 1,081 1 $ 511,668 11 $ 510,587 $ 511,668 $ 2.81 $ 2.81

The accompanying notes are an integral part of the consolidated financial statements (Concluded) (With Deloitte & Touche auditors’ report dated March 26, 2024)

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WUS Printed Circuit Co., Ltd. and Subsidiaries CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (In Thousands of New Taiwan Dollars, Except Dividends Per Share)

BALANCE AT JANUARY 1, 2022 Appropriation of 2021 earnings（Notes 20） Legal reserve Reversal of special reserve Cash dividends Changes in equity of associates accounted for using equity method Other changes in capital surplus Net profit for the year ended December 31, 2022 Other comprehensive income (loss) for the year ended December 31, 2022, net of income tax Total comprehensive income (loss) for the year ended December 31, 2022 Cash Dividends received by subsidiaries from the Company to adjust capital surplus BALANCE AT DECEMBER 31, 2022 Appropriation of 2022 earnings（Notes 20） Legal reserve Cash dividends Changes in equity of associates accounted for using equity method Other changes in capital surplus Net profit for the year ended December 31, 2023 Other comprehensive income (loss) for the year ended December 31, 2023, net of income tax Total comprehensive income (loss) for the year ended December 31, 2023 Cash Dividends received by subsidiaries from the Company to adjust capital surplus disposal of Investments accounted for using equity method disposal of equity instruments at fair value through othercomprehensive income BALANCE AT DECEMBER 31, 2023	Ordinary Shares Capital Surplus $ 1,827,405 $ 345,862 - - - - - - - - - 31,815 - ( 278) - - - - - - - 1,306 1,827,405 378,706 - - - - - - - 88,188 - ( 609) - - - - - - - 653 - ( 13,608) - - $ 1,827,405 $ 453,330		Retained Earnings	Total $ 6,131,866 - - 182,741) 182,741) - - 510,587 53,393 563,980 - 6,513,105 - 91,370) 91,370) - - 835,606 14,822 850,428 - 1,803 1,970 $ 7,275,936	Other Equity Exchange Differences on Translation Unrealized Gains (Losses) on Financial Assets at Fair Value Through Other Foreign Operations Comprehensive Income Total Other Equity Treasury shares ($ 421,036) ($ 110,616) ($ 531,652) ($ 93,017) - - - - - - - - - - - - ( - - - - ( - - - - - - - - ( - - 74,340 ( 126,652) ( 52,312) - 74,340 ( 126,652) ( 52,312) - - - - - ( 346,696 ) ( 237,268) ( 583,964) ( 93,017 ) - - - - - - - - ( - - - - ( - - - - - - - - ( - - ( 63,840) 72,894 9,054 - ( 63,840) 72,894 9,054 - - - - - - ( 1,803) ( 1,.803) - ( - ( 1,970) ( 1,970) - ($ 410,536) ($ 168,147) ($ 578,683) ($ 93,017)	Total Equity $ 7,680,465 - - 182,741) 182,741) 31,815 278) 510,587 1,081 511,668 1,306 8,042,235 - 91,370) 91,370) 88,188 609) 835,606 23,876 859,482 653 13,608) - $ 8,884,971
			Legal Reserve Special Reserve Unappropriated Earnings $ 824,768 $ 1,906,502 $ 3,400,596 53,160 - ( 53,160 ) - ( 6,922 ) 6,922 - - ( 182,741) ( 53,160 ( 6,922) ( 228,979) ( - - - - - - - - 510,587 - - 53,393 - - 563,980 - - - 877,928 1,899,580 3,735,597 56,398 - ( 56,398 ) - - ( 91,370) ( 56,398 - ( 147,768) ( - - - - - - - - 835,606 - - 14,822 - - 850,428 - - - - - 1,803 - - 1,970 $ 934,326 $ 1,899,580 $ 4,442,030

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

(With Deloitte & Touche auditors’ report dated March 26, 2024)

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WUS Printed Circuit Co., Ltd. and Subsidiaries CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)

CASH FLOWS FROM OPERATING ACTIVITIES Profit before income tax Adjustments for: Depreciation expense Amortization expense Expected credit loss (gain) Net gain on financial assets at fair value through profit or loss Finance costs Interest income Share of the profit of associates Gain (loss) on disposal of property, plant and equipment Gain on disposal of associates for using equity method Impairment loss recognized on non-financial assets Others Changes in operating assets and liabilities Notes receivable Accounts receivable Accounts receivable from related parties Accounts receivable Inventories Increase in prepayments Other current assets Contract liabilities Accounts payable Other payables Liability provisions Other current liabilities Net defined benefit liability Refund liabilities Cash generated from (used in) operations Dividends received Income tax paid Net cash generated from operating activities

For the Year Ended December 31

2023 2022 $ 1,215,011 $ 648,350 365,867 364,149 3,589 4,738 ( 13 ) 560 ( 9,026 ) ( 18,557 ) 53,295 37,685 ( 99,086 ) ( 81,176 ) ( 860,122 ) ( 774,758 ) ( 1,550 ) ( 2,239 ) ( 1,025,735 ) - 123,392 115,379 10,957 456 - 9,391 128,913 546,306 25,379 2,469 5,366 8,381 161,957 366,692 31,646 6,748 ( 315 ) 228 ( 5,235 ) ( 8,437 ) ( 162,714 ) ( 507,155 ) 50,260 55,700 ( 156 ) ( 123 ) ( 4,346 ) ( 2,925 ) ( 25,062 ) ( 84 ) 2,729 12,170 ( 14,999 ) 783,948 162,312 159,535 ( 76,885) ( 103,316) 70,428 840,167 （Continued）

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CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of financial assets at fair value through other comprehensive income Acquisition of financial assets at fair value through profit or loss Proceeds from disposal of financial assets at fair value through profit or loss Acquisition of investment for using equity method Proceeds from disposal of investment for using equity method Payment for property, plant and equipment Proceeds from disposal of property, plant and equipment Increase in refundable deposits Acquisition of intangible assets Increase in other financial assets Interest received Income taxes Net cash generated from (used in) investing activities CASH FLOWS FROM FINANCING ACTIVITIES Increase (Decrease) in short-term borrowings Increase in short-term notes and bills payable Proceeds from long-term borrowings Repayments of long-term borrowings Decrease in deposits received Repayment of the principal portion of lease liabilities Dividends paid Interest paid Dividends claimed over time from shareholders Net cash generated from (used in) financing activities EFFECTS OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR	For the Year Ended December 31	For the Year Ended December 31
		2023 2022 $ - ( $ 9,500 ) ( 747,900 ) ( 1,193,530 ) 739,215 1,772,674 ( 24,829 ) - 1,354,470 - ( 283,545 ) ( 681,451 ) 2,257 2,308 ( 247 ) - ( 862 ) ( 1,274 ) ( 202,891 ) ( 61,363 ) 141,095 46,514 ( 140,822 ) - 835,941 ( 125,622) 481,000 ( 358,322 ) 50,000 - 746,723 686,875 ( 775,963 ) ( 917,307 ) ( 4 ) ( 828 ) ( 8,538 ) ( 8,350 ) ( 90,717 ) ( 181,435 ) ( 66,690 ) ( 47,848 ) ( 609) ( 278) 335,202 ( 827,493) ( 27,289) 14,302 1,214,282 ( 98,646 ) 766,331 864,977 $ 1,980,613 $ 766,331

The accompanying notes are an integral part of the consolidated financial statements.(Concluded) (With Deloitte & Touche auditors’ report dated March 26, 2024)

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WUS Printed Circuit Co., Ltd. and Subsidiaries NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

1. GENERAL INFORMATION

The Company was invested and established by domestic shareholders in May, 1978. It is mainly engaged in the manufacture, processing, assembly, sales of double side and multi-layer printed circuit boards and imported commodity trading business.

The Company’s shares have been listed on the Taiwan Stock Exchange (TWSE) since February 1991.

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

2. APPROVAL OF FINANCIAL STATEMENTS

The consolidated financial statements were approved by the Company’s board of directors and authorized for issue on March 26, 2024.

3. APPLICATION OF NEW AND AMENDED STANDARDS AND INTERPRETATIONS

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

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

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

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

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

• Note 2: A seller-lessee shall apply the Amendments to IFRS 16 retrospectively to sale and leaseback transactions entered into after the date of initial application of IFRS 16.

• Note 3: The amendments provide some transition relief regarding disclosure requirements.

As of the date the consolidated financial statements were authorized for issue, the Company and its subsidiaries have assessed that the application of other standards and interpretations will not have a material impact on the financial position and financial performance.

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

New IFRSs

Effective Date Announced by IASB (Note 1)

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

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

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

As of the date the consolidated financial statements were authorized for issue, the Company and its subsidiaries are continuously assessing the possible impact that the application of other standards and interpretations will have on the Company and its subsidiaries’ financial position and financial performance and will disclose the relevant impact when the assessment is completed.

• d Expression reclassification

The Company and its subsidiaries’s management believes transferring funds back to the Company pursuant to the Management, Utilization, and Taxation of Repatriated Offshore Funds Act and using these funds for physical or cash investments does not change the nature of these funds. The Company and its subsidiaries are able to obtain these funds upon request, and it is more appropriate for the funds in this account to be considered cash and cash equivalents. In 2023, the Company has changed how these funds are reported on the consolidated balance sheet and consolidated cash flow statement, and reclassified other financial assets for December 31, 2022 and January 1, 2022 as cash and cash equivalents with a book value of NT$136,639 thousand and NT$303,001 thousand respectively. The impact on cash flow items for 2022 are as follows :

Amount Adjustments for net cash used in investing activities ($166,362) Adjustments for net decrease in cash and cash equivalents ($166,362)

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

• a. Statement of compliance

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

• b. Basis of preparation

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

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

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

• 2) Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the 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 the asset or liability

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

Current assets include:

• 1) Assets held primarily for the purpose of trading;

• 2) Assets expected to be realized within 12 months after the reporting period; and

• 3) Cash and cash equivalents unless the asset is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period.

Current liabilities include:

• 1) Liabilities held primarily for the purpose of trading;

• 2) Liabilities due to be settled within 12 months after the reporting period; and

• 3) Liabilities without an unconditional right to defer settlement for at least 12 months after the reporting period.

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

• d. Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Company and the entities controlled by the Company (i.e., its subsidiaries). When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the Corporation. All intercompany transactions, balances, income and expenses are eliminated in full upon consolidation.

The detailed information of subsidiaries (including percentages of owner ship and main businesses) is provided in note 12 and Table 5 and 6.

• e. Foreign currencies

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

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

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

• 16 -

income.

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

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

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

In relation to a partial disposal of a subsidiary that does not result in the Company losing control over the subsidiary, the proportionate share of accumulated exchange differences is re-attributed to non-controlling interests of the subsidiary and is not recognized in profit or loss. For all other partial disposals, the proportionate share of the accumulated exchange differences recognized in other comprehensive income is reclassified to profit or loss.

• f. Inventories

Inventories include raw materials, supplies, work in process, finished goods and Goods are stated at the lower of cost and net realizable value. Inventory write-downs are made by item, except where it may be appropriate to group similar or related inventories. Net realizable value is the estimated selling prices of inventories less all estimated costs of completion and estimated costs necessary to make the sale. Inventories are usually recorded at standard cost, and adjusted to approximate the weighted average cost on the closing date.

• g. Investments in associates

An associate is an entity over which the Company and its subsidiaries have significant influence and that is neither a subsidiary nor an interest in a joint venture.

The Company and its subsidiaries use the equity method to account for their investments in associates. Under the equity method, an investment in an associate is initially recognized at cost and adjusted thereafter to recognize the Company and its subsidiaries’ share of the profit or loss and other comprehensive income of the associate. The Company and its subsidiaries also recognize the changes in the share of equity of associates.

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

When the Company and its subsidiaries’ share of losses of an associate equal or exceed their interest in that associate (which includes any carrying amount of the investment accounted for using the equity method and long-term interests that, in substance, form part of the Company and its subsidiaries’ net investment in the associate), the Company and its subsidiaries discontinue

• 17 -

recognizing their share of further losses. Additional losses and liabilities are recognized only to the extent that the Company and its subsidiaries have incurred legal obligations, or constructive obligations, or made payments on behalf of that associate.

When impairment loss is evaluated, the entire carrying amount of the investment is tested for impairment as a single asset by comparing its recoverable amount with its carrying amount. Any impairment loss recognized is not allocated to any asset, that forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognized to the extent that the recoverable amount of the investment has subsequently increased.

When the Company and its subsidiaries transact with their associates, profits and losses on these transactions are recognized in the consolidated financial statements only to the extent of interests in the associates that are not related to the Company and its subsidiaries.

• h. Property, plant and equipment

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

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

Except for the property, plant and equipment purchased by the printed circuit board manufacturing plant before 1999 are depreciated using the declining balance method. The rest of the property, plant and equipment of the company and its subsidiaries are calculated on a straight-line basis within the useful lives. Each significant component is depreciated separately. The estimated useful lives, residual values and depreciation method are reviewed at each balance sheet date, with the effect of any changes in estimate accounted for on a prospective basis.

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

i. Intangible assets

Intangible assets with finite useful lives acquired separately are initially measured at cost and subsequently measured at cost less accumulated amortization. Intangible assets are amortized using the straight-line method over their estimated useful lives. The estimated useful lives, residual values, and amortization methods are reviewed at each balance sheet date, with the effect of any changes in estimate being accounted for on a prospective basis.

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

• j. Impairment of property, plant and equipment, right-of-use assets, and Intangible assets

At the end of each reporting period, the Company and its subsidiaries review the carrying amounts of their property, plant and equipment, right-of-use assets and intangible assets to determine whether there is any indication that those assets have suffered an 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 and its subsidiaries estimate the recoverable amount of the cash-generating unit to which the asset belongs. Company assets are allocated to the individual cash-generating units on a reasonable and consistent basis of allocation; otherwise, they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified.

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

• 18 -

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 for the asset or cash-generating unit (net of amortization and depreciation) had no impairment loss been recognized in prior years. A reversal of an impairment loss is recognized immediately in profit or loss.

k. Financial instruments

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

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

b) Measurement categories

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

• i Financial assets at FVTPL

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

Financial assets at FVTPL are subsequently measured at fair value, with any gains or losses arising on remeasurement recognized in profit or loss. The net gain or loss is recognized in profit or loss. Fair value is determined in the manner described in Note 27.

ii Financial assets at amortized cost

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

• i) The financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and

• ii) The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Subsequent to initial recognition, financial assets at amortized cost, including cash and cash equivalents, trade receivables at amortized cost (including related parties) , other receivables, other financial assets and refundable deposits are measured at amortized cost, which equals to 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:

• 19 -

• 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 asset 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.

Credit-impaired financial assets are those for which the issuer or the debtor has experienced significant financial difficulty, has defaulted, where the debtor is likely to declare bankruptcy or undergo other financial reorganization, or the disappearance of an active market for the financial asset due to financial difficulty.

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

iii Investments in equity instruments at FVTOCI

On initial recognition, the Company and its subsidiaries 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 and its subsidiaries’ right to receive the dividends is established, unless the dividends clearly represent a recovery of part of the cost of the investment.

c) Impairment of financial assets

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

The Company and its subsidiaries recognize lifetime expected credit losses (ECLs) for trade receivables. For all other financial instruments, the Company and its subsidiaries recognize 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 and its subsidiaries measure the loss allowance for that financial instrument at an amount equal to 12-month ECLs.

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

For the purpose of internal credit risk management, if internal or external information shows that the debtor is no longer able to pay off the debt, the Company and its subsidiaries would determine that the financial asset has defaulted, without considering the collateral held.

• 20 -

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

• d) Derecognition of financial assets

The Company and its subsidiaries derecognize a financial asset only when the contractual rights to the cash flows from the asset expire, or when they transfer 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 an equity instrument at FVTOCI in its entirety, the cumulative gain or loss that had been recognized in other comprehensive income is transferred directly to retained earnings, without recycling through profit or loss.

• 2) Equity instruments

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

• 3) Financial liabilities

All Financial liabilities of the Company and its subsidiaries are measured at amortized cost using the effective interest method.

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.

l. Liability provision

When the Company and its subsidiaries have current obligations due to past events, and it is very likely to have to pay off the obligations, and the amount of the obligations can be reliably estimated, the liability provision are recognized.

Recognized as a liability provision is an estimate of the possible warranty obligations, which is the best estimate of the expenditure required to pay off the obligation on the balance sheet date after considering the risks and uncertainties of the obligation.

• m. Treasury shares

Treasury stock represents the outstanding shares that the Company and its subsidiaries buy back from market, which are stated at cost and shown as a deduction in shareholders’ equity.

Shares of the Company held by subsidiaries are reclassified to treasury shares from investments accounted for using equity method at the acquisition cost. The Company distributes dividends to its subsidiaries, it will write-off investment income in its accounts and also adjust additional paid-in capital treasury shares.

• n. Government grants

Government grants related to income are not recognized until there is reasonable assurance that the Company will comply with the conditions attaching to them and that the grants will be received. Government grants are recognized in profit or loss on a systematic basis over the periods in which the Company recognizes as expenses the related costs for which the grants are intended to compensate.

It is recognized as defferred government grants income, bank loan received at a below-market rate of interest is treated as a government grant measured as the difference between the proceeds received and the fair value of the loan based on prevailing market interest rates. And income is

• 21 -

recognized on a period by period basis during the loan period.

• o. Revenue recognition

The Company and its subsidiaries identify contracts with customers, allocate the transaction price to the performance obligations and recognize revenue when performance obligations are satisfied.

The goods revenue are derived from sales of printed circuit board related products. The revenue is due to the fact that after the delivery (in principle, the goods are delivered to the customer’s location for domestic sales, and the goods are loaded for export), the customer has already set the price and the right to use the goods and bears the main responsibility for reselling the goods, and bears the responsibility for the obsolescence risk of the goods. The Company and its subsidiaries recognize revenue and accounts receivable or a reduction in contract liabilities when the goods transfer to the customer.

When processing with self-provided material, the control of the ownership of the processed products has not been transferred, so revenue is not recognized.

Sales returns and discounts are based on past experience and other relevant factors that reasonably estimate the amount of future returns and discounts, and are recognized in refund liabilities.

• p. Leases

At the inception of a contract, the Company and its subsidiaries assess whether the contract is, or contains, a lease.

• 1) The Company and its subsidiaries 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 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 lease are added to the carrying amounts of the underlying assets and recognized as expenses on a straight-ling basis over the lease terms.

• 2) The Company and its subsidiaries as lessee

The Company and its subsidiaries recognize 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. Right-of-use assets are subsequently measured at cost less accumulated depreciation and adjusted for any remeasurement of the lease liabilities. Right-of-use assets are presented on a separate line in the consolidated balance sheets.

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

Lease liabilities are initially measured at the present value of the lease payments, which comprise fixed payments payments, 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 and its subsidiaries use the lessee’s incremental borrowing rate.

Subsequently, lease liabilities are measured at amortized cost using the effective interest method, with interest expense recognized over the lease terms. When there is a change in a lease term or a change in future lease payments resulting from a change in an index or a rate

• 22 -

used to determine those payments, the Company and its subsidiaries remeasure the lease liabilities with a corresponding adjustment to the right-of-use-assets. However, if the carrying amount of the right-of-use assets is reduced to zero, any remaining amount of the remeasurement is recognized in profit or loss. Lease liabilities are presented on a separate line in the consolidated balance sheets.

The Company and its subsidiaries have conducted direct negotiations with the lessor regarding the COVID-19, which resulted in a reduction in rent. The relevant rent negotiations did not materially change the terms of other lease agreements. The company and its subsidiaries choose to adopt a practical expedient approach to deal with all rent negotiations that meet the aforementioned conditions, and do not assess whether the negotiation is a lease modification. Instead, recognized the reduction in lease payments in profit or loss as a deduction of expenses of variable lease payments when the concession event or situation, occurs, and relatively reduced lease liabilities.

• q. Borrowing costs

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

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

All borrowing costs other than those stated above are recognized in profit or loss in the period in which they are incurred.

Employee benefits

• 1) Short-term employee benefits

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

• 2) Retirement benefits

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

Defined benefit costs (including service cost, net interest and remeasurement) under the defined benefit retirement benefit plans are determined using the projected unit credit method. Current service cost and net interest on the net defined benefit liabilities 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 they occur. Remeasurement recognized in other comprehensive income is reflected immediately in retained earnings and will not be reclassified to profit or loss.

Net defined benefit liabilities represent the actual deficit in the defined benefit plan.

• r. Taxation

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

• 1) Current tax

The Company and its subsidiaries’ income tax payable are based on taxable profit for the year determined according to the applicable tax laws of each tax jurisdiction.

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

• 23 -

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

• 2) Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences, to the extent that it is probable that taxable profits will be available against which those deductible temporary differences or loss carryforwards can be utilized.

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

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

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

• 3) Current and deferred taxes for the year

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

5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Company and its subsidiaries’ accounting policies, management is required to make judgments, estimates and assumptions 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.

Key Sources of Estimation and Assumption Uncertainty

• a. Valuation of inventories

Inventories are stated at the lower of cost or net realizable value, and the Company and its subsidiaries use judgment and estimate to determine the net realizable value of inventory at the end of the reporting period. The net realizable value of inventories is mainly evaluated based on estimation of future sales price. Changes in market conditions may significantly affect the results of these estimates.

• b. Impairment of property, pland and equipment

• 24 -

The impairment of equipment related to part of the productions are assessed based on the recoverable amount of the equipment (that is, the higher of the fair value of the assets less the cost of sales and value in use). The recoverable amount of the assets will be affected when the market prices or future cash flows change. It will may cause the company and its subsidiaries to additionally recognized impairment losses or reverse recognized impairment losses.

c. Deferred tax

Taxable temporary differences related to investment in foreign subsidiaries are likely to not be realized in the foreseeable future. So related liabilities of deferred income tax is not recognized. The income tax expense is recognized in the realization year when foreign subsidiaries repatriate earnings. The income tax impact of the unrecognized deferred income tax liabilities of the company’s investment revenue in foreign subsidiaries on December 31, 2023 and 2022 are $1,003,039 thousand and $1,009,349 thousand, respectively.

6. CASH AND CASH EQUIVALENTS

ASH AND CASH EQUIVALENTS
Cash on hand Checking accounts and demand deposits Cash equivalents Time deposits with original maturity of less than 3 months Interest rate range (%)		**December 31 **
		2023 $ 160 598,228 1,382,225 $1,980,613 1.1～5.34	2022 $ 160 338,237 427,934 $ 766,331 0.975～4.2

7. FINANCIAL ASSET AT FAIR VALUE THROUGH PROFIT OR LOSS – CURRENT

Financial assets mandatorily classified as at FVTPL Non-derivative financial assets Floating income Financial products Mutual fund		December 31	December 31
		2023 $ 305,930 1,909 $ 307,839	2022 $ 267,309 27,049 $ 294,358

8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME – NON-CURRENT

NCOME – NON-CURRENT
Equity investments Foreign listed stocks Domestic emerging stocks Domestic unlisted stocks		December 31
		2023 $ 87,816 78,300 - $ 166,116	2022 $ 48,759 - 79,500 $ 128,259

The Company and its subsidiaries invest in the above-mentioned equity instruments according to medium and long-term strategic goals, and expect to make profits through long-terms investment. The management of the company and its subsidiaries believe that if the short-term fair value

• 25 -

fluctuations of these investments are included in the profit or loss, it is inconsistent with the aforementioned long-term investment plan, so they choose to designate these investments as measured at fair value through other comprehensive profits and losses.

9. RECEIVABLES

ECEIVABLES
Accounts receivable from Non-realted parties Measured at amortized cost Gross carrying amount Less: Allowance for loss Accounts receivable from related parties Measured at amortized cost Gross carrying amount Other receivables Interest receivable Revenue from scrap sales Receivable for VAT refund Others		December 31
		2023 $ 855,779 7,280 $ 848,499 $ 37,603 $ 66,901 12,372 6,898 5,562 $ 91,733	2022 $ 984,692 7,293 $ 977,399 $ 62,982 $ 108,910 13,395 9,531 7,272 $ 139,108

• a. Notes and accounts receivable measured at cost after amortization

The average credit periods of sales of the Company and its subsidiaries are 30 to 120 days. The Company and its subsidiaries conduct a prudent assessment of the customers and customers are well-trusted companies, and thus no significant credit risk is expected. To mitigate credit risks, management of the Company and its subsidiaries assigns a team responsible for the decision-making on the credit line, credit approval and other monitoring procedures to ensure that appropriate actions are taken for the recovery of overdue receivables. In addition, the Company and its subsidiaries review the recoverable amount of receivables on each balance sheet date to ensure that appropriate allowance for losses has been recognized for the uncollectible receivables. Under the circumstance, management of the Company and its subsidiaries believe that the credit risk of the Company and subsidiaries is significantly reduced.

The Company and its subsidiaries’ allowance for receivable loss is recognized based on the lifetime expected credit losses. The lifetime expected credit losses are estimated using a provision matrix by reference to past default records of customers, the current financial position, the industrial economic situation, and the industrial outlook, while taking into consideration previous experiences, management’s judgment, and other known factors to estimate possible returns and discounts of the products (recognized as a refund liability).

According to the previous experience of credit losses of the Company and its subsidiaries, there is no significant difference in the loss patterns in different customer groups, and thus, the provision matrix does not further distinguish the customer base.

However, if evidence shows that the counterparty is in severe financial difficulty and there is no realistic prospect of recovery, the Company and its subsidiaries write off the accounts receivable and continue to engage in enforcement activity to attempt to recover the receivables due. Where recoveries are made, these are recognized in profit or loss.

The following table details the loss allowance of notes and accounts receivable based on the Company and its subsidiaries’ provision matrix:

• 26 -

December 31, 2023

Gross carrying amount Loss allowance Amortized cost December 31, 2022 Gross carrying amount Loss allowance Amortized cost		Not Past Due		1 to 30 Days		31 to 90 Days	91 to 180 Days	Over 180 Days	Total
		$ 703,225 - $ 703,225 Not Past Due		$ 135,886 - $ 135,886 1 to 30 Days		$ 30,496 - $ 30,496 31 to 90 Days	$ 856 - $ 856 91 to 180 Days	$ 22,919 ( 7,280 ) $ 15,639 Over 180 Days	$ 893,382 ( 7,280 ) $ 886,102 Total
		$ 843,568 - $ 843,568		$ 149,008 - $ 149,008		$ 32,509 - $ 32,509	$ 12,759 - $ 12,759	$ 9,830 ( 7,293 ) $ 2,537	$1,047,674 ( 7,293 ) $1,040,381

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

Balance at beginning of the year Recognized (reversed) in the current year Balance at end of the year	For the Year Ended	For the Year Ended	December 31
	(	2023 $ 7,293 13) $ 7,280	2022 $ 6,733 560 $ 7,293

b. Other receivables

The Company and its subsidiaries’ allowance account is the amount estimated to be unrecoverable based on the past default records and current financial status. As of December 31, 2023 and 2022, there is no balance in allowance account for losses.

10. INVENTORIES

NVENTORIES
Raw materials Supplies Work in process Finished goods Merchandise		December 31
		2023 $ 293,964 30,391 272,885 218,051 6,458 $ 821,749	2022 $ 466,531 29,947 225,329 305,120 6,791 $1,033,718

For the years ended December 31, 2023 and 2022, the cost of inventories recognized as operating costs was as follows:

Cost of goods sold Losses on inventory valuation loss and obsolescence Revenue from sale of scraps	For the Year Ended	For the Year Ended	December 31
	(	2023 $3,740,918 53,392 3,470) ( $3,790,840	2022 $4,894,639 62,379 5,454) $4,951,564

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11. OTHER FINANCIAL ASSETS

OTHER FINANCIAL ASSETS
Current Time deposits with original maturity over three months Interest rate range (%) Non-current Time deposits with maturity over one year Pledged time deposits Interest rate range (%) Refer to Note 29 for pledge information.		**December 31 **
	2023 2022 $1,150,057 $1,698,766 1.85～5.630 2.14～4.2625 $1,150,100 $ 418,000 160 160 $1,150,260 $ 418,160 1.1～3.55 0.78～4.1

12. SUBSIDIARIES

Subsidiaries included in the consolidated financial statements were as follows:

Investor Investee Main Businesses The Company WUS Group Holdings Co., Ltd. （WGH） Investment WUS Group (BVI) Holdings Co., Ltd.（WUS-BVI） Investment Yun-Hsu Investment Co., Ltd. （Yun-Hsu） Investment China Electronic (BVI) Holdings Co., Ltd.（CEH-BVI） Investment CEH-BVI Centron Electronics (HK) Co., Ltd. （CEK） Investment WUS-BVI WUS Printed Circuit (Singapore) Pte., Ltd.（WUS-Singapore） Sales and engineering service of printed circuit boards CEK Centron Electronics (Kunshan) Co., Ltd.（Centron） Assembly and Sales of peripheral equipment such as electronic products. Centron WUS Energy Technology (Kunshan) Co., Ltd.（WUS Energy） Photo electronic application products research, production and sales.

Percentage of Ownership (%)

December 31 2023 2022 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100

• 28 -

13. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

December 31 2023 2022 Material associates Wus Printed Circuit (Kunshan) Co., LTD.（Wus-Kunshan） $5,025,718 $4,586,869 Non-material associates Wus Printed Circuit (Thailand) Co., LTD.（Wus-Thailand） $ 24,353 $ - $5,050,071 $4,586,869 Associates that are individually material Proportion of Ownership and VotingRights(%) December 31 Company Main Business Operating Location 2023 2022 Wus-Kunshan Manufacture and sales of printed circuit boards. Kunshan, Jiang Su, China 11.98 12.85		December 31	December 31
			2022 $4,586,869 $ - $4,586,869 Proportion of Ownership and VotingRights(%)
			December 31 2023 2022 11.98 12.85

In the fourth quarter of 2023, the company disposed of 15,000 thousand shares of Wus-Kunshan held by its subsidiary WGH. The sale price was $ 1,354,470 thousand, resulting in investment gains from disposal of $ 1,025,735 thousand (included under other gains and losses).

Although the Company and its subsidiaries hold less than 20% of stock ratio in Wus-Kunshan, the amount is accounted for under the equity method as the Company and its subsidiaries have significant influence over Wus-Kunshan.

The following summary of financial information is prepared according to the financial statements of the associates prepared using IFRSs, and has reflected the adjustments made under the equity method.

Wus - Kunshan

Wus- Kunshan
Current assets Non-current assets Current liabilities Non-current liabilities Equity Non-controlling interests Proportion of the Company and its subsidiaries’ ownership (%) Equity attributable to the Company and its subsidiaries and carrying amount	December 31
	2023 2022 $ 34,029,356 $ 29,594,548 35,049,143 24,731,967 ( 21,798,840 ) ( 16,849,338 ) ( 5,101,595) ( 1,782,127) 42,178,064 35,695,050 ( 227,919) - $ 41,950,145 $ 35,695,050 11.98 12.85 $ 5,025,718 $ 4,586,869

• 29 -

Operating revenue Net profit for the year Other comprehensive income (loss) Total comprehensive income	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2023 $ 39,328,561 $ 6,818,326 344,835 ( $ 7,163,161	2022 $ 36,845,253 $ 6,031,679 444,328) $ 5,587,351

Wus Printed Circuit (Kunshan) Co., Ltd. is a listed company in mainland China, and has Level 1 quoted market price. The fair value information is as follows:

Company Wus-Kunshan		December 31	December 31
		2023 $21,956,441	2022 $12,760,706

Non-material associates are as follows:

The board of directors of WUS-Singapore, a subsidiary of the company decided in September, 2023 to purchase 163,097 shares of WUS Thailand held by it from Wus - Kunshan for $15,080 thousand with a shareholding ratio of 1%, mainly to seek a flexible cooperation model and Establishing a mutually beneficial strategic cooperative relationship. In addition, in October of the same year, the shareholders meeting of WUS-Thailand decided to increase its capital by 47,490,300 shares. The subsidiary WUS-Singapore increased its shareholding ratio by 474,903 shares, and as of March 31, 2024, it held a total of 638,000 shares. WUS-Thailand is a subsidiary of Wus-Kunshan, an investee company that adopts the equity method for valuation, so it adopts the equity method for valuation.

14. PROPERTY, PLANT AND EQUIPMENT

• a. The cost, depreciation, and impairment of the property, plant and equipment of the Company were as follows:

For the Year Ended December 31, 2023

Cost		land improvements	Buildings	Machinery and Equipment	Transportation Equipment	Furniture and fixtures	Construction in Progress and Equipment to be Inspected	Total	Total
		$ - 391,006 - - $ 391,006 $ - - - - - $ - $ 391,006	$ 2,882,235 88,071 ( 610 ) ( 3,336 $ 2,966,360 $ 2,316,121 72,490 - ( 610) ( 1,969) $ 2,386,032 $ 580,328	$ 6,697,047 250,268 ( 128,485 ) ( 7,172) $ 6,811,658 $ 5,725,838 243,078 70,000 ( 128,298 ) ( 6,303) $ 5,904,315 $ 907,343	$ 44,760 1,728 ( 1,413 ) - $ 45,075 $ 29,530 5,228 - ( 1,413 ) - $ 33,345 $ 11,730	$ 636,130 21,211 ( 10,298 ) ( 3,669) $ 643,374 $ 530,899 35,679 - ( 9,778 ) ( 3,147) $ 553,653 $ 89,721	$ 964,066 ( 547,203 ) - - $ 416,863 $ - - - - - $ - $ 416,863	$ 11,224,238 205,081 ( 140,806 ) ( 14,177) $ 11,274,336 $ 8,602,388 356,475 70,000 ( 140,099 ) ( 11,419) $ 8,877,345 $ 2,396,991
Balance at January 1, 2023 Additions Disposals Effect of foreign currency exchange differences Balance at December 31, 2023 Accumulated depreciation and impairment
Balance at January 1, 2023 Depreciation Impairment loss Disposals Effect of foreign currency exchange differences Balance at December 31, 2023 Carrying amount at December 31, 2023
									$ 8,877,345
									$ 2,396,991

• 30 -

For the Year Ended December 31, 2022

Cost		Buildings	Machinery and Equipment	Transportation Equipment	Furniture and fixtures		Construction in Progress and Equipment to be Inspected	Total
		$ 2,813,325 65,754 - 3,156 $ 2,882,235 $ 2,247,977 66,428 - - 1,716 $ 2,316,121 $ 566,114	$ 6,685,414 276,684 ( 274,566) 9,515 $ 6,697,047 $ 5,692,086 247,475 53,000 ( 274,558) 7,835 $ 5,725,838 $ 971,209	$ 44,788 823 ( 851) - $ 44,760 $ 24,361 6,020 - ( 851) - $ 29,530 $ 15,230	$ 614,211 37,056 ( 18,976) 3,839 $ 636,130 $ 512,029 34,828 - ( 18,915) 2,957 $ 530,899 $ 105,231		$ 677,591 286,475 - - $ 964,066 $ - - - - - $ - $ 964,066	$ 10,835,329 666,792 ( 294,393) 16,510 $ 11,224,238 $ 8,476,453 354,751 53,000 ( 294,324) 12,508 $ 8,602,388 $ 2,621,850
Balance at January 1, 2022 Additions Disposals Effect of foreign currency exchange differences Balance at December 31, 2022 Accumulated depreciation and impairment
Balance at January 1, 2022 Depreciation Impairment loss Disposals Effect of foreign currency exchange differences Balance at December 31, 2022 Carrying amount at December 31, 2022

Due to the economic impacts in 2023 and 2022, the Company estimated that the predicted recoverable amount of the discounted future cash inflow is less than the book value, and a loss will be incurred. Thus, the Company recognized an impairment loss of $70,000 thousand and $53,000 thousand for the year 2023 and 2022 respectively.And included under other gains and losses The Company evaluates the impairment losses using the value in use as the recoverable amount of property, plant and equipment at a discounted rate of 7.57% and 7.15% respectively.

As of December 31, 2023 and 2022, the accumulated impairment losses are NT$867,347 thousand and $807,285 thousand, respectively.

b. Useful lives

Except for that certain equipment in the Company is depreciated using the declining balance method, the property, plant and equipment of the Company and subsidiaries are depreciated using the straight-line method according to the following service life:

Buildings
Main structure	10-52 years
Facility	2-15 years
Machinery and Equipment	2-12 years
Transportation Equipment	2-5 years
Furniture and fixtures	2-20 years

Refer to Note 29 for the amounts of property, plant and equipment pledged by the Company and its subsidiaries as collateral for bank borrowings.

15. LEASE ARRANGEMENTS

• a. Right-of-use assets

Carrying amounts Land Office equipment		**December 31 **	**December 31 **
		2023 $ 91,503 1,117 $ 92,620	2022 $ 100,465 1,692 $ 102,157

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Depreciation charge for right-of-use assets Land Office equipment	For the Year Ended	For the Year Ended	December 31
		2023 $ 8,808 584 $ 9,392	2022 $ 8,810 588 $ 9,398

Other than the above depreciation expenses, the Company and its subsidiaries do not have significant addition, sublet or impairment regarding right-of-use assets for the years 2023 and 2022.

• b. Lease liabilities

Carrying amounts Current Non-current		**December 31 **	**December 31 **
		2023 $ 8,623 $ 76,783	2022 $ 9,035 $ 84,804

Ranges of discount rates (%) for lease liabilities were as follows:

Land Office equipment	December 31
	2023 2022 1.458～2.171 1.458～2.171 5.5 3~5.5

c. Material lease activities and terms

The lands of the Company’s factories are leased from the government, and will expire before November 2028. According to the lease terms, the Company may renew the leases upon expiry; provided that the government may adjust the rent according to the lands’ assessed present value. The Company does not have bargain purchase options upon the expiry of the said leases.

Centron obtained land use right from the government of the People’s Republic of China with a term of 50 years, expiring at the end of August 2050.

The Company and its subsidiaries do not have significant addition to lease contracts for the years 2023 and 2022.

d. Other lease information

Expenses relating to short-term and low-value asset leases Total cash outflow for leases	For the Year Ended	For the Year Ended	December 31
		2023 $ 2,537 $ 12,865	2022 $ 3,248 $ 13,458

• 32 -

The Company and its subsidiaries lease certain transport equipment and furniture and fixtures which qualify as short-term leases and low-value asset leases. The Company and its subsidiaries have elected to apply the recognition exemption and thus, do not recognize right-of-use assets and lease liabilities for these leases

16. BORROWINGS

• a. Short-term borrowings

Unsecured loans Annual interest rates were 1.8%～1.97% and 1.675%～ 1.9% as of December 31, 2023 and 2022, respectively b. Short-term bills payable Guarantee or Acceptance Agency China Bills Finance Corporation Mega Bills Finance Co., Ltd. Less: Unamortized discounts Range of interest rate (%) c. Long-term borrowings Commercial paper facilities with revolving line of credit Expire before June 2027, with annual interest rates as of December 31, 2023 and 2022 at 2.15%~2.191% and 1.9573%~2.0573%, respectively. Unsecured loans Repay until May 2028, with annual interest rates as of December 31, 2023 and 2022 at 1.45%～ 2.234439% and 1.325%～1.94%, respectively. (Note) Secured loans Repay until July 2026, with annual interest rates as of December 31, 2023 and 2022 at 1.85%～1.88% and 1.725%～1.755%, respectively. Less: Current portion		**December 31 **	**December 31 **
		2023 2022 $ 865,000 $ 384,000 December 31
		2023 2022 $ 200,000 $ 200,000 200,000 150,000 400,000 350,000 249 721 $ 399,751 $ 349,279 2.065 1.968～1.988 **December 31 **
		2023 $ 399,580 $1,421,097 346,154 2,166,831 619,759	2022 $ 399,625 $ 1,311,876 484,615 2,196,116 548,462

• 33 -

	December 31	December 31
	2023 $1,547,072	2022 $1,647,654

• Note: The Company obtained the approval for Action Plan for Welcoming Overseas Taiwanese Businesses to Return to Invest in Taiwan by the Ministry of Economic Affairs in January 2022, and shall complete the investment by December 31, 2024 in accordance with the relevant regulations. As of December 31, 2023, the Company has received loans for $160,598 thousand at a preferred interest rate for the use of capital expenditures and working capital. Such loans shall be repaid in installments starting 2 years after the first withdrawal (the grace period). The interest rates of the loans in the first 5 years are calculated based on the floating interest rate of two-year fixed-postal savings less than $5 million minus 0.145% annual interest rate; where in failure to fulfill the requirement of the aforementioned loans, the interest rates shall be calculated based on the floating interest rate of two-year fixed-postal savings less than $5 million plus 0.355% annual interest rate.

17. ACCOUNTS PAYABLE

The average payment terms of procurement are from 1 - 4 months. The Company and its subsidiaries have established its financial risk management policy to ensure timely repayment of all payables.

18. OTHER PAYABLES

OTHER PAYABLES
Accrued salaries and bonus Payable for property, plant and equipment Accrued resignation pay Accrued leave pay Accrued commissions expense Accrued utilities Others		December 31
		2023 $ 148,319 45,047 29,221 22,359 22,129 21,924 197,098 $ 486,097	2022 $ 145,783 137,683 34,580 20,020 23,222 17,806 149,029 $ 528,123

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

The subsidiaries in mainland China deposit basic pension insurance premiums at the responsible departments in accordance with the laws and regulations of the People’s Republic of China.

b. Defined benefit plans

Some employees of the Company adopted the defined benefit pension plan under the R.O.C. Labor Standards Law operated by the government. Pension benefits are calculated on the basis of the length of service and average monthly salaries of the 6 months before retirement. The 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 balance in the pension fund is inadequate to pay retirement

• 34 -

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

The amounts included in the consolidated balance sheets in respect of the Company and its subsidiaries’ defined benefit plans were as follow:

Present value of defined benefit obligation Fair value of plan assets Net defined benefit liabilities		**December 31 **	**December 31 **
	(	2023 $ 241,116 182,717) ( $ 58,399	2022 $ 294,880 192,891) $ 101,989

Movements of net defined benefit liabilities were as follows:

Balance at January 1, 2023 Service cost Current service cost Interest expense (income) Recognized in profit or loss Remeasurement Return on plan assets(excluding amounts included in net interest) Actuarial gain-changes in financial assumption Actuarial gain-experience adjustments Recognized in other comprehensive income Contributions from the employer Benefits paid Balance at December 31, 2023 Balance at January 1, 2022 Service cost Current service cost Interest expense (income) Recognized in profit or loss	Present Value of the Defined Benefit Obligation $ 294,880 3,945 5,004 8,949 $ - 10,632 ( 28,409) ( 17,777) - ( 44,936) $ 241,116 $ 395,757 5,516 1,919 7,435	Fair Value of the Plan Assets ($ 192,891) - ( 3,505) ( 3,505) ( $ 751 ) - - ( 751) ( 30,506) 44,936 ($ 182,717) ($ 226,943) - ( 1,243) ( 1,243)	Net Defined Benefit Liabilities	Net Defined Benefit Liabilities
	( ( (	( ( ( ( ( ( ( ( ( (	( ( ( (	$ 101,989 3,945 1,499 5,444 $ 751 ) 10,632 28,409) 18,528) 30,506) - $ 58,399 $ 168,814 5,516 676 6,192

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Present Value of the Defined Benefit Obligation	Fair Value of the Plan Assets	Net Defined Benefit Liabilities

Remeasurement Return on plan assets(excluding amounts included in net interest) Actuarial gain-changes in financial assumption ( Actuarial gain-experience adjustments ( Recognized in other comprehensive income ( Contributions from the employer Benefits paid ( Balance at December 31, 2022	$ - ( 37,597 ) 13,221) 50,818) ( - ( 57,494) $ 294,880 (	$ 15,923 ) ( - ( - ( 15,923) ( 6,276) ( 57,494 $ 192,891)	$ 15,923 ) 37,597 ) 13,221) 66,741) 6,276) - $ 101,989

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

Operating costs Operating expenses	For the Year Ended	For the Year Ended	December 31
		2023 $ 4,781 663 $ 5,444	2022 $ 5,610 582 $ 6,192

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 securities, debt securities, and bank deposits, etc. The investment is conducted at the discretion of the Bureau of Labor Funds, Ministry of Labor 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 and corporate bond interest rate will increase the present value of the defined benefit obligation; however, this will be partially offset by an increase in the return on the plan’s debt investments.

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

• 36 -

valuations were as follows:

Discount rate (%) Expected rate of salary increase (%) Mortality rate (%) Resignation rate (%) Early retirement rate (%)	December 31
	2023 2022 1.196 1.697 2 2 Base on the 2021 Taiwan Standard Ordinary Experience Mortality Table Base on the 2021 Taiwan Standard Ordinary Experience Mortality Table 0～18 0～20 3～100 3～100

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

Discount rate 0.25% increase 0.25% decrease Expected rate of salary increase 0.25% increase 0.25% decrease		**December 31 **	**December 31 **
	( (	2023 $ 5,495) ( $ 5,680 $ 5,528 $ 5,375) (	2022 $ 6,999) $ 7,244 $ 7,080 $ 6,874)

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

Expected contributions to the plan for the next year Average duration of the defined benefit obligation		**December 31 **	**December 31 **
		2023 $ 27,300 9.45 years	2022 $ 27,300 9.90 years

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20. EQUITY

a. Share capital

Number of shares authorized (in thousands) Shares authorized Number of shares issued and fully paid (in thousands) Shares issued		December 31	December 31
		2023 590,000 $ 5,900,000 182,741 $ 1,827,405	2022 590,000 $ 5,900,000 182,741 $ 1,827,405

Fully paid ordinary shares, which have a par value of NT$10, carry one vote per share and the right to dividends. The total of 68,000 thousand shares from the authorized share capital was reserved for the issuance of employee stock options.

b. Capital surplus

May be used to offset deficit, distributed as cash, or transferred to share capital (Note) Additional paid-in Capital Treasury share transactions Expired share options May be used to offset a deficit only Dividends unclaimed over time May not be used for any purpose Share of changes in equity of associates		**December 31 **	**December 31 **
		2023 $ 208,422 6,256 11,625 5,705 221,322 $ 453,330	2022 $ 208,422 5,603 11,625 6,314 146,742 $ 378,706

Note: Such capital surplus can be used to offset deficits; also, when the Company does not have any deficits, it may be distributed as cash dividend or transferred to share capital. However, it is limited to a certain percentage of the annual paid in capital for the purpose of transfer to share capital.

c. Retained earnings and dividends policy

Pursuant to the Company’s Articles of Incorporation, if there are earnings from the company’s end-of-year settlement, it shall first be allocated for tax payments and to make up any accumulated losses, followed by setting aside 10% as legal reserve. However, this requirement shall not apply if the cumulative statutory surplus reserve has reached the Company's total paid-in capital. Then, the Company shall appropriate or reverse to special reserve based on the Company’s operating needs and pursuant to regulations provided by the competent authority. If there is surplus remaining after appropriation, the Board of Directors shall draft an earnings distribution proposal regarding the remainder of the surplus as well as accumulated undistributed earnings at the beginning of the period for approval at the shareholders' meeting to allocate dividends to shareholders.

The Company’s industry is mature. To meet the funding needs for now and future business expansion and satisfy the shareholders’ demand for cash inflows, the Company shall use residual

• 38 -

dividend policy to distribute dividends, of which the cash dividend is not lower than 20% of the total dividend distribution.

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

The appropriation of earnings for 2022 and 2021 had been approved in the shareholders’ meetings in June 2023 and July 2022, respectively. The appropriations and dividends per share were as follows:

were as follows:
Legal reserve Reversal special reserve Cash dividends Dividend per share (NT$)	For the year Ended December 31 2022 $ 56,398 $ - $ 91,370 $ 0.5	For the year Ended December 31 2021
		(	$ 53,160 $ 6,922) $ 182,741 $ 1

The appropriations of earnings for 2022 that had been proposed by the Company’s board of directors in March, 2023 are as follows:

Legal reserve Reversal special reserve Cash dividends Dividend per share (NT$)	For the Year Ended December 31 2023	For the Year Ended December 31 2023
	(	$ 85,420 $ 15,542) $ 91,370 $ 0.5

The appropriations of earnings for 2023 are subject to the resolution of the shareholders in their meeting to be held in June 2024.

d. Other equity items

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

Balance at beginning of the year Recognized for the year Exchange differences on translation of the financial statements of foreign operations Income tax related to Exchange differences on translation of the financial statements of foreign operations Reclassification adjustment Disposal of shares of associates accounted for using the equity method	For the Year Ended	For the Year Ended	December 31
	( (	2023 $ 346,696) ( 90,460 ) 15,960 ( 9,614	2022 $ 421,036) 92,925 18,585 ) -

• 39 -

Deemed as disposal of shares of associates accounted for using equity method Other comprehensive gain or loss for the year Balance at end of the year	For the Year Ended	For the Year Ended	December 31
	(		2022 - 74,340 $ 346,696)

• 2) Unrealized gains and losses on financial assets at FVTOCI.

Balance at beginning of the year Recognized for the year Unrealized gains and losses - equity instruments Share of associates accounted for using the equity method Other comprehensive gain or loss for the year Disposal of equity instrument measured at FVTOCI Deemed as cumulated gains and losses on disposal of equity instruments transferred to retained earnings Balance at end of the year	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
	( ( ( (	2023 $ 237,268) ( 37,857 ( 35,037 ( 72,894 ( 1,970) 1,803) $ 168,147) (	2022 $ 110,616) 68,727 ) 57,925) 126,652) - - $ 237,268)

• e. Treasury shares

There is no change in number of treasury shares in 2023 and 2022.

Subsidiry – Yun Hsu investment bought the company’s stock for investment and wealth management. The relevant information of the company’s held on the balance sheet date is as follows:

Investee December 31, 2023 Yun-Hsu Investment December 31, 2022 Yun-Hsu Investment	Shares Held By Subsidiaries (In thousand shares) 1,306 1,306	Carrying amount NT$ $ 50,675 $ 35,133	FairValue	FairValue
				NT$ $ 50,675 $ 35,133

The Company’s shares held by the subsidiaries are deemed as treasury shares, and are entitled some right as regular shareholders, except that they are not entitled to participate in the Company’s capital increase in cash and right to vote.

• 40 -

21. OPERATING REVENUE

• a. Contract balances

ERATING REVENUE Contract balances
Accounts receivable Contract liabilities-current Sale of goods	December 31, 2023 $ 886,102 $ 126,390	December 31, 2022 $1,040,381 $ 131,625	January 1, 2022
				$1,599,107 $ 140,062

The changes in contract liabilities was mainly due to the difference in timing between the satisfaction of performance obligations and customer payment, and there is no other significant change.

b. Breakdown of customer contract Revenue

Please refer to Note 33 for the information of revenue breakdown.

22. NET PROFIT FOR THE YEAR

• a. Other gains and losses

Gain on financial assets at FVTPL Net foreign exchange gains (losses) Gain on disaposal of investment Gain on disposal of property, plant and equipment Impairment loss on property, plant and equipment Others	For the Year Ended	For the Year Ended	December 31
	( (	2023 $ 9,026 938 1,025,735 1,550 70,000 ) ( 4,024) ( $ 963,225	2022 $ 18,557 108,573 - 2,239 53,000 ) 2,165) $ 74,204

The components of net foreign exchange gains (losses) were as follows:

Foreign exchange gains Foreign exchange losses Net foreign exchange gains (losses)	For the Year Ended	For the Year Ended	December 31
	(	2023 $ 187,495 186,557) ( $ 938	2022 $ 365,564 256,991) $ 108,573

b. Finance costs

Interest on bank loans Interest on lease liabilities	For the Year Ended	For the Year Ended	December 31
		2023 $ 65,677 1,790	2022 $ 45,017 1,860

• 41 -

Less: Amounts included in the cost of qualifying assets Information about capitalized interest was as follows: Capitalized interest amount Capitalization rate (%) c. Depreciation and amortization Property, plant and equipment Right-of-use asset Others Analysis of depreciation by function Operating costs Operating expenses Analysis of amortization by function Operating costs Operating expenses d. Employee benefits Short-term employee benefits Salaries Labor and health insurance Directors remuneration Others	For the Year Ended	For the Year Ended	December 31
	2023 67,467 $ 14,172 $ 53,295 For the Year Ended		2022 46,877 $ 9,192 $ 37,685 December 31
	2023 $ 14,172 1.8~1.92 For the Year Ended		2022 $ 9,192 1.08~1.44 December 31
	2023 $ 356,475 9,392 3,589 $ 369,456 $ 347,352 18,515 $ 365,867 $ 2,909 680 $ 3,589 **For the Year Ended **		2021 $ 354,751 9,398 4,738 $ 368,887 $ 346,170 17,979 $ 364,149 $ 4,324 414 $ 4,738 December 31
		2023 $ 750,832 63,755 2,278 58,761 875,626	2022 $ 909,230 74,125 2,436 62,265 1,048,056

• 42 -

Post-employment benefits Defined contribution plans Defined benefit plans Analysis by function Operating costs Operating expenses	For the Year Ended	For the Year Ended	December 31
		2023 $ 38,097 5,444 43,541 $ 919,167 $ 672,502 246,665 $ 919,167	2022 $ 43,607 6,192 49,799 $1,097,855 $ 841,309 256,546 $1,097,855

e. Remuneration of employees and directors

According to the Company’s Articles of Incorporation, the remuneration for employees and Directors shall be between 0.1-10% (inclusive) and no higher than 2% of the earnings before tax of the year and before deducting remuneration for employees and Directors. The amount of 2023 and 2022 remuneration for employees and Directors (distributed in cash) resolved at the board meeting in March 2024 and 2023 are as follows:

Remuneration of employees Remuneration of directors	For the Year Ended December 31
	2023 2022 $1,033 $ 606 $ 418 $ 606

If there is a change in the proposed amounts after the consolidated financial statement authorized for issue, the differences are recorded as a change in accounting estimate and will be adjusted in the following year.

There is no difference between the actual distribution amount of remuneration for employees and directors in 2022 and 2021 and the amount recognized in the consolidated financial report for the year 2022 and 2021.

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

23. INCOME TAX

• a. Main components of income tax expense (benefit) recognized in profit or loss

Current income tax In respect of the current year Unappropriated Earnings Adjustments for prior years	**For the Year Ended **	**For the Year Ended **	December 31
		2023 $ 273,937 18,313 - ( 292,250	2022 $ 70,480 - 6,048) 64,360

• 43 -

Deferred income tax In respect of the current year	For the Year Ended	For the Year Ended	December 31
		2023 $ 87,155 $ 379,405	2022 $ 73,403 $ 137,763

The reconciliation of accounting profit and income tax expense (benefit) was as follows:

Profit before tax Income tax expense calculated at the statutory rate The amount of income tax affected by items adjusted in accordance with legal provisions Unappropriated Earnings Offest of loss carry forwards Adjustments for prior years Investment credits for current year	For the Year Ended	For the Year Ended	December 31
	( (	2023 $1,215,011 $ 225,244 143,604 18,313 5 ) ( - ( 7,751) ( $ 379,405	2022 $ 648,350 $ 140,419 11,171 - 3 ) 6,048 ) 7,776) $ 137,763

• 1) WGH is established in Samoa, WUS-BVI and CEH-BVI in the British Virgin Islands, and CEK in Hong Kong. These subsidiaries are exempt from payment of business income tax pursuant to local laws.

• 2) WUS-Singapore is established in Singapore, and the tax amount is calculated by multiplying taxable income by the applicable tax rate, with applicable tax rate at 17%.

• 3) The applicable tax rate of Centron and Wus Energy is 25% in accordance with the “Enterprise Income Tax Law of the People's Republic of China” and other applicable laws.

• b. There was no income tax recognized directly in equity by the Company and its subsidiaries.

• c. Income tax expense recognized in other comprehensive income

Deferred tax Exchange differences on translation of foreign operations Remeasurement of defined benefit plans Current tax assets and liabilities Current tax assets Tax refund receivable	For the Year Ended	For the Year Ended	December 31
	2023 ( $ 15,960 ) 3,706 ($ 12,254) For the Year Ended		2022 $ 18,585 13,348 $ 31,933 December 31
		2023 $ 737	2022 $ 737

• d. Current tax assets and liabilities

• 44 -

Current tax liabilities Income tax payable	For the Year Ended	For the Year Ended	December 31
		2023 $ 101,196	2022 $ 26,653

e. Deferred tax assets and liabilities

Movements of deferred tax assets and liabilities were as follows:

For the Year Ended December 31, 2023

Deferred tax assets	Balance at Beginning of **the Year **	Balance at Beginning of **the Year **	Recognized in Profit or Loss	Recognized in Other Comprehensive Income	Exchange Differences		Balance at End of the Year
		$ 77,506 20,398 30,447 128,351 27,538 4,289 $ 160,178 $ 599,676 54,625 35,867 493 $ 690,661	$ 6,809 ( 5,012) 409 2,206 ( 27,538) 1,091 ($ 24,241 ) $ 70,342 ( 8,826 ) - ( 1,398) $ 62,914	$ - ( 3,706 ) - ( 3,706 ) - - ($ 3,706 ) $ - - ( 15,960 ) - ($ 15,960 )	( $ 845 ) - ( 141 ) ( 986 ) - - ($ 986 ) $ - ( 286 ) - ( 998 ) ($ 1,284 )		$ 83,470 11,680 30,715 125,865 - 5,380 $ 131,245 $ 670,018 45,513 19,907 893 $ 736,331
Temporary differences Allowance for loss of inventory Net defined benefit liabilities Others Loss carry forward Investment credits Deferred tax liabilities
Temporary differences Investment income under equity method – foreign Property, plant and equipment Exchange difference on translation of foreign operations Others
					(

For the Year Ended December 31, 2022

Deferred tax assets	Balance at Beginning of **the Year **	Balance at Beginning of **the Year **	Recognized in Profit or Loss	Recognized in Other Comprehens ive Income		Exchange Differences		Balance at End of the Year
		$ 74,296 33,763 20,628 128,687 8,871 - $ 137,558	$ 2,426 ( 17 ) 9,758 12,167 18,535 4,289 $ 34,991	$ - ( 13,348 ) - ( 13,348 ) - - ($ 13,348 )		$ 784 - 61 845 132 - $ 977		$ 77,506 20,398 30,447 128,351 27,538 4,289 $ 160,178
Temporary differences Allowance for loss of inventory Net defined benefit liabilities Others Loss carry forward Investment credits

Deferred tax liabilities Temporary differences

• 45 -

Investment income under equity method – foreign Property, plant and equipment Exchange difference on translation of foreign operations Others	Balance at Beginning of **the Year **	Balance at Beginning of **the Year **	Recognized in Profit or Loss	Recognized in Other Comprehens ive Income	Recognized in Other Comprehens ive Income		Exchange Differences		Balance at End of the Year
		$ 481,134 62,478 17,282 2,335 $ 563,229	$ 118,542 ( 8,265 ) - ( 1,883) $ 108,394		$ - - 18,585 - $ 18,585		$ - 412 - 41 $ 453		$ 599,676 54,625 35,867 493 $ 690,661

• f. Items for which no deferred tax assets have been recognized in the consolidated balance sheet for deductible temporary differences and unused loss carry-forward.

Loss carry-forward Deductible temporary differences Impairment loss on assets and difference in depreciation		December 31	December 31
		2023 $ 65 34,001 $ 34,066	2022 $ 88 33,511 $ 33,599

• g. Information about unused loss carry-forward

As of December 31, 2023, the unused loss carry-forward of Company and its subsidiaries’ comprised:

Unused carried forward balance $ 65	ExpiryYear
	2027

• h. Summary of unrecognized temporary differences of deferred income tax assets that are related to investments:

The subsidiary, China Electronic (BVI) Holdings Co., Ltd., has resolved at the board meeting to retain all earnings and not remit back, and another subsidiary, WUS Group Holdings Co., Ltd., retains and does not remit back part of the earnings. Thus, related deferred tax liabilities are not recognized. As of December 31, 2023 and 2022, the unrecognized taxable temporary differences of deferred tax liabilities related to investment in subsidiaries are $5,015,195 thousand and $5,046,744 thousand, respectively.

• i. Income tax assessment

The Company and its subsidiaries’-Yun Hsu investment income tax returns as of 2020 have been approved by the tax authorities.

24. EARNINGS PER SHARE

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

• 46 -

Net profit for the year

Net profit attributable to owners of the Company Number of ordinary shares Weighted average number of ordinary shares used in the computation of basic earnings per share Less: Weighted average number of outstanding shares of the company held by subsidiaries Weighted average number of ordinary shares used in the computation of basic earnings per share Add: Potentially dilutive ordinary shares－Remuneration of employee 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
	2023 2022 $ 835,606 $ 510,587 Unit: Thousand Shares For the Year Ended December 31
		2023 182,741 1,306 181,435 32 181,467	2022 182,741 1,306 181,435 27 181,462

The Company is able to settle the employees remuneration by cash or shares, the Company assumed that the entire amount of the remuneration will be settled in shares and the resulting potential shares are included in the weighted average number of shares outstanding used in the computation of diluted earnings per share, as the shares have a dilutive effect. Such dilutive effect of the potential shares is included in the computation of diluted earnings per share until the meeting approves the number of shares to be distributed to employees in the following year.

25. CASH FLOW INFORMATION

• a. Non-Cash transactions

For the years ended December 31, 2023 and 2022, the Company and its subsidiaries entered into the following non-cash investing activities:

Investing activities affecting both cash and non-cash items Acquisition of property, plant and equipment Decrease in prepayments for equipment Decrease in payables for equipment Capitalized interest Cash paid	For the Year Ended	For the Year Ended	December 31
	(	2023 $ 205,081 - ( 92,636 14,172) ( $ 283,545	2022 $ 666,792 5,042 ) 28,893 9,192) $ 681,451

• 47 -

• b. Total income tax paid

operating activities Investing activities	For the Year Ended	For the Year Ended	December 31
		2023 $ 76,885 140,822 $ 217,707	2022 $ 103,316 - $ 103,316

26. CAPITAL RISK MANAGEMENT

The Company and its subsidiaries manage their capital to ensure that the entities will be able to continue as going concerns while maximizing the return to stakeholders through the optimization of the debt and equity balance.

The capital structure of the Company and its subsidiaries consist of net liabilities and equity, without any need for complying with other external capital requirements.

27. FINANCIAL INSTRUMENTS

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

The management of the Company and its subsidiaries believe the carrying amounts of financial assets and financial liabilities recognized in the financial statements approximate their fair values.

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

• 1) Fair value hierarchy

December31,2023 Financial instruments at FVTPL Mutual funds Floatingincome financial products Financial assets at FVTOCI Equity instruments Domestic emerging stocks Foreign listed stocks December31,2022 Financial instruments at FVTPL Mutual funds Floatingincome financial products		Level 1 $ 1,909 - $ 1,909 $ 78,300 87,816 $ 166,116 $ 27,049 - $ 27,049		Level 2 $ - - $ - $ - - $ - $ - - $ -		Level 3 $ 305,930 $ 305,930 $ - - $ - $ 267,309 $ 267,309		Total
								$ 1,909 305,930 $ 307,839 $ 78,300 87,816 $ 166,116 $ 27,049 267,309 $ 294,358

• 48 -

Financial assets at FVTOCI Equity instruments Domestic unlisted stocks Foreign listed stocks	$ - 48,759 $ 48,759	$ - - $ -	$ 79,500 - $ 79,500	$ 79,500 48,759
				$ 128,259

There was no transfer between Level 1 and Level 2 during the years ended December 31, 2023 and 2022.

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

Financial assets at FVTPL Balance at beginning of the year Purchase Disposal Recognized in profit or loss (other gains and losses) Effects of foreign currency exchange Balance at end of the year Financial Assets at FVTOCI Balance at beginning of the year Purchase Transfer from Level 3(Note) Balance at end of the year	For the Year Ended	For the Year Ended	December 31
	( ( (	2023 $ 267,309 704,000 669,903 ) ( 8,754 4,230) $ 305,930 $ 79,500 - 79,500) $ -	2022 $ 813,631 998,920 1,577,395 ) 18,370 13,783 $ 267,309 $ 70,000 9,500 - $ 79,500

Note: Since the stocks have emerged and their transactions are active, they are transferred from level 3 to level 1.

• 3) Valuation techniques and inputs applied for the purpose of measuring Level 3 fair value measurement

The financial products held by the company and its subsidiaries use the evaluation method to estimate because there is no market price for reference. The fair value is estimated with reference to the expected rate of return of the contract. The domestic unlisted equity investment adopts the income method, and is calculated based on the discounted cash flow method to calculate the expected income from holding this investment present value.

• c. Categories of financial instruments

Financial assets	**December 31 **
	2023 2022 $ 307,839 $ 294,358 5,252,469 4,053,570 166,116 128,259
Fair value through profit or loss Financial assets at amortized cost (Note 1) Financial assets at fair value through other comprehensive income - equity instruments

• 49 -

Financial liabilities	December 31
	2023 2022 4,263,605 3,966,162
Financial liabilities at amortized cost (Note 2)

• Note 1: The balances included financial assets at amortized cost, which comprise cash and cash equivalents, notes and accounts receivable (including related parties), other receivables (excluding tax refund receivable), other financial assets and refundable deposits.

• Note 2: The balances included financial liabilities measured at amortized cost, which comprise short-term bills payable, accounts payable, other payables, short-term borrowings and long-term borrowings (including current portion of long-term borrowings) and guarantee deposit received.

• d. Financial risk management objectives and policies

The Company and its subsidiaries’s major financial instruments include accounts receivable, equity instrument investments, other financial assets, accounts payable, short-term notes payable, Long-term and short-term loans (including long-term loans due within one year) and lease liabilities. The financial management department of the Company and its subsidiaries provides services for various business units, coordinates access to domestic and international financial markets, and monitors and manages the financial risks relating to the operations of the Company and its subsidiaries through internal risk reports which analyze exposures by degree and breadth 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 and its subsidiaries’ activities exposed it primarily to the financial risks of changes in foreign currency exchange rates (see (a) below), interest rates (see (b) below) and other price (see (c) below)

There had been no change to the Company and its subsidiaries’ exposure to market risks or the manner in which these risks were managed and measured.

• b) Foreign currency exchange rate risk

The Company and its subsidiaries were engaged in foreign currency denominated sales and purchase transactions, which exposed the Company to foreign currency exchange rate risk. Exchange rate exposures were managed by natural hedges of receivables and payables in the same currency to reduce the exchange rate risk.

For the carrying amounts of the Company and its subsidiaries’ significant non-functional currency denominated monetary assets and liabilities at the balance sheet date, refer to Note 31.

Sensitivity analysis

Foreign currency financial assets and financial liabilities of the Company and its subsidiaries are mainly affected by fluctuations in the exchange rate of US dollars and RMB. The following table details the Company and its subsidiaries’ sensitivity to 1% change in the functional currencies against the relevant foreign currencies. 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 1%.

The sensitivity analysis included only outstanding foreign currency denominated monetary items. In the following table indicates amount that would increase net profit before tax of the Company when the functional currency depreciates by 1% relative to foreign currencies.

• 50 -

Profit (Note)		USD Impact For the Year Ended December 31 2022 2022 $ 8,700 $ 9,078		RMB Impact	RMB Impact
				For the Year Ended December 31
		2022 $ 8,700		2022 $ 21,820	2022 $ 10,977

Note: This was mainly attributable to the exposure to outstanding cash and cash equivalents, accounts receivable, other receivables, Financial assets at FVTPL, other financial assets, Long-term and short-term loans, accounts payable, other payables, and deposits received in USD and RMB which were not hedged at the balance sheet date.

In management’s sensitivity analysis was unrepresentative of the in herent foreign exchange risk because the exposure at the balance sheet date did not reflect the exposure during the period. Sales in USD will fluctuate according to the terms of contracts.

• c) Interest risk

The Company and its subsidiaries were exposed to interest risk because the Company and its subsidiaries borrowed funds at floating interest rates. The carrying amounts of the Company and its subsidiaries’ financial assets and liabilities with exposure to interest rates risks at the balance sheet date were as follows:

Fair value interest rate risk Financial assets Financial liabilities Cash flow interest rate risk Financial assets Financial liabilities	December 31
	2023 2022 $ 3,682,422 $ 2,544,740 1,687,737 1,662,743 596,610 335,659 1,829,251 1,360,491

Sensitivity analysis

If interest rates had been 1% higher and all other variables were held constant, the Company and its subsidiaries’ profit before tax would have decreased by $18,293 thousand and $13,605 thousand for the years ended December 31, 2023 and 2022 respectively, mainly due to the variable interest rate financial liabilities borrowed by the company and its subsidiaries.

• d) Other price risk

The Company and its subsidiaries were exposed to equity price risk through their investments in mutual fund、foreign listed stocks、domestic emerging stocks and domestic unlisted stocks, the risk is managed by maintaining a portfolio of investments with different risks.

Sensitivity analysis

The sensitivity analysis measures the exposure to equity and bond price risk at the balance sheet date.

If price of mutual funds had been 1% lower. Profit before tax for the years ended December 31, 2023 and 2022 would have decreased by $19 thousand and $270 thousand, respectively, as a result of the changes in the fair value of financial assets at FVTPL.

If equity prices of foreign listed shares 、domestic emerging stocks and domestic

• 51 -

unlisted stocks had been 1% lower, other comprehensive income for the years ended December 31, 2023 and 2022 would have decreased by $1,661 thousand and $1,283 thousand, respectively, as a result of the changes in the fair value of financial assets at FVTOCI.

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 and its subsidiaries. As of the balance sheet date, the Company and its subsidiaries’ maximum exposure to credit risk is the carrying amount of the financial assets on the consolidated balance sheets.

The policy adopted by the Company and its subsidiaries is to only conduct transaction with reputable objects, and to obtain sufficient guarantees under necessary circumstances to reduce the risk of financial losses due to defaults. The Company and its subsidiaries will use other publicly available financial information and historical transactions records to rate major customers. Continuously to monitor the credit exposure risk and the credit ratings of the counterparties, and distribute the total transaction amount to different customers with qualified credit rating, and the credit risk is controlled through the yearly review and approval of counterparty credit limits.

The Company and its subsidiaries’ balance of accounts receivable, customer whose accounts receiable exceed 10% of the total amount are as follow:

A Customer B Customer		**December 31 **	**December 31 **
		2023 $ 141,899 94,888 $236,787<br>|**2022**<br>$ 199,007<br>105,441<br>$304,448

3) Liquidity risk

The management of the Company and its subsidiaries continuously monitor the movements of cash flows, net cash position and the utilization of bank loan commitments to control proportion of long-term and short-term bank loans and ensure the compliance with loan covenants.

The Company and its subsidiaries rely on bank borrowings as a significant source of liquidity. As of December 31, 2023 and 2022, the Company and its subsidiaries’ unused short term and long term bank loan facilities were $2,911,775 thousand and $2,963,694 thousand, respectively.

The financial liabilities of the company and its subsidiaries during the agreed repayment period are summarized and listed as follow according to the maturities date and undiscounted maturity amount.

undiscounted maturity amount.
December 31,2023 Short-Term Borrowings Short-term notes and bills payable Accounts Payable Other Payables Long-Term Bank loan Lease Liabilities Refund Liability	Less Than 1 Year $ 866,588 400,000 345,869 486,097 648,375 10,245 41,210	1-5 Years $ - - - - 1,565,590 37,558 -	Over 5 Years $ - - - - - 49,085 -	Total
				$ 866,588 400,000 345,869 486,097 2,213,965 96,888 41,210

• 52 -

Deposits Received December 31,2022 Short-Term Borrowings Short-term notes and bills payable Accounts Payable Other Payables Long-Term Bank loan Lease Liabilities Refund Liability Deposits Received		Less Than 1 Year - $ 2,798,384 $ 385,375 350,000 508,583 528,123 578,255 10,218 38,499 - $ 2,399,053		1-5 Years 57 $ 1,604,205 $ - - - - 1,669,154 39,280 - 61 $ 1,708,495		Over 5 Years - $ 49,085 $ - - - - - 57,560 - - $ 57,560		Total
								57 $ 4,450,674 $ 385,375 350,000 508,583 528,123 2,247,409 107,058 38,499 61 $ 4,165,108

28. TRANSACTIONS WITH RELATED PARTIES

Details of transactions between the Company and its subsidiaries and related parties were disclosed below:

• a. Related party names and relationships

Related Party Name Relationship WUS Printed Circuit (Kunshan) Co., LTD. Associate WUS Printed Circuit KEPZ (Kunshan) Co., Ltd. Associate WUS International Company Limited Associate East Wast Trading Company Associate Centronix Electronics (Kunshan) Co.,Ltd. Associate WUS Printed Circuit (Huang Shi) Co., Ltd. Associate Schweizer Electronic (Jiangsu) Co. Ltd. Associate

• b. Operating revenue

Related Party Name Associates	**For the Year Ended **	**For the Year Ended **	December 31
		2023 $ 95,928	2022 $ 164,649

Except that some products have no price of selling other third party for comparison, the prices of other items sold to related parties are not significantly different from those of ordinary customers, and the payment terms are about 30-120 days, which is also the same with the general customer collection period.

• c. Purchase of goods

Related Party Name Associates	For the Year Ended	For the Year Ended	December 31
		2023 $ 57,391	2022 $ 96,555

The Company and its subsidiaries purchased from the related parties and did not purchase similar

• 53 -

products from non-related parties. Therefore, the purchase price is not comparable with non-related parties. Payments term to related parties were made under normal terms.

• d. Acquisition of property, plant and equipment

Related Party Category/Name Associates	Purchase Price	Purchase Price	Purchase Price
	For the Year Ended		December 31
		2023 $ 4,476	2022 $ 4,214

• e. Receivables from related parties

**Account Item **	Related Party Category/Name Associates Associates		December	31
			2023 $ 37,603 $ 2,855	2022 $ 62,982 $ 3,684
Accounts receivable - related parties other receivables

No guarantee had been received for receivables from outstanding related parties. For the years ended December 31, 2023 and 2022, no impairment loss was recognized on receivables from related parties.

• f. Payables to related parties

Account Item	Related Party Category Associates Associates		**December **	31
			2023 $ 8,002 $ 372	2022 $ 12,615 $ 84
Accounts payable Other payables

The outstanding accounts payable to related parties were unsecured.

• g. Remuneration of key management personnel

Remuneration of directors and other members of key management was as follows:

Short-term employee benefits Post-employment benefits	**For the Year Ended **	**For the Year Ended **	December 31
		2023 $ 10,202 348 $ 10,550	2022 $ 10,352 348 $ 10,700

29. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

The Company and its subsidiaries provided the following assets as collaterals for oil purchasing and long-term borrowings:

• 54 -

Property, plant and equipment Buildings Other financial assets - non-current		Carrying amount	Carrying amount
		December 31
		2023 $ 184,986 160 $ 185,146	2022 $ 197,656 160 $ 197,816

30. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

The company and its subsidiaries have significant commitment matters as follow at 2023:

• a. The amount of the letter of credited that have been opened but not used is $30,336 thousand.

• b. The amount of signed but not yet recognized fixed asset purchasing contract is $118,753 thousand.

31. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

The following information was aggregated by the foreign currencies other than functional currencies of the Company and its subsidiaries and the exchange rates between the foreign currencies and the respective functional currencies were disclosed. The significant assets and liabilities denominated in foreign currencies were as follows:

Unit: Foreign Currency in thousand / NT in thousand; Exchange rate: dollar

December 31,2023	Foreign Currency	Exchange Rate	Carrying Amount
	$ 19,800 17,650 509,023 4,087 5,071 6,251 2,578	30.75 (USD:NTD) 7.0853 (USD:RMB) 4.34 (RMB:NTD) 30.75 (USD:NTD) 7.0853 (USD:RMB) 4.34 (RMB:NTD) 34.06 (EUR:NTD)	$ 608,866 542,738 2,209,161 125,665 155,954 27,130 87,816
Financial assets Monetary items USD USD RMB Financial liabilities Monetary items USD USD RMB Non-monetary items Financial assets at fair value through other comprehensive income EUR Investments accounted for using the equity

• 55 -

method RMB USD December31,2022	Foreign Currency	Exchange Rate	Carrying Amount
	1,813,112 3,677 $ 18,655 30,622 249,477 5,503 14,224 1,490 1,670,220 3,075	4.34 (RMB:NTD) 30.75 (USD:NTD) 30.72 (USD:NTD) 6.9818 (USD:RMB) 4.4 (RMB:NTD) 30.72 (USD:NTD) 6.9818 (USD:RMB) 32.76 (EUR:NTD) 4.4 (RMB:NTD) 30.72 (USD:NTD)	7,868,905 113,076 $ 573,067 940,692 1,097,700 169,041 436,948 48,759 7,348,315 94,457
Financial assets Monetary items USD USD RMB Financial liabilities Monetary items USD USD Non-monetary items Financial assets at fair value through other comprehensive income EUR Investments accounted for using the equity method RMB USD

The total foreign exchange gains and losses (including realized and unrealized) were gains of $938 thousand and gains of $108,573 thousand for the years ended December 31, 2023 and 2022, respectively. It is impractical to disclose net foreign exchange gains and losses by each significant foreign currency due to the variety of the foreign currencies of each entity.

32. ADDITIONAL DISCLOSURES

• a. Information about significant transactions:

• 1) Financing provided to others: (Table 1)

• 2) Endorsements/guarantees provided: None

• 3) Marketable securities held (excluding investments in subsidiaries and associates) at year end:(Table 2)

• 4) Marketable securities acquired or disposed at costs or prices at least NT$300 million or 20% of the paid-in capital: None

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

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

• 7) Total purchases from or sales to related parties amounting to at least NT$100 million or 20%

• 56 -

of the paid-in capital: None

• 8) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital :(Table 3)

• 9) Trading in derivative instruments: None

• 10) The business relationship between the parent company and the subsidiaries and between each subsidiary, and the circumstances and amounts of any significant transactions: (Table 4)

• b. Information on investees: (Table 5)

• c. Information on investments in mainland China

• 1) Information on any investee company in mainland China, showing the name, principal business activities, paid-in capital, method of investment, inward and outward remittance of funds, ownership percentage, net income of investees, investment gain or loss, carrying amount of the investment at the end of the period, repatriations of investment income, and limit on the amount of investment in the mainland China area: (Table6)

• 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) Transactions：(Table 4)

The unrealized profit and loss of the purchase and sale of the above item has been eliminated according to the equity method. Transactions with subsidiaries has been reversed in consolidated financial statements.

• b) The balance of receivables and payables: (Table 4)

The balance of receivables and payments arising from transactions between the company and its subsidiaries has been reversed in consolidated financial statements.

• c) The amount of property transactions and the amount of the resultant gains or losses :(Note 28)

• d) The balance of negotiable instrument endorsements or guarantees or pledges of collateral at the end of the period and the purposes: None

• e) The highest balance, the end of period balance, the interest rate range, and total current period interest with respect to financing of funds: (Table 1)

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

• d. Information of major shareholders: list of the shareholders with ownership of 5% or greater, showing the names, the number of shares and percentage of ownership held by each shareholder. : (Table 7)

33. SEGMENT INFORMATION

Information reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance focuses on the types of products or services delivered or provided. Specifically, the Company and its subsidiaries’ reportable segments were as follows:

• a. Segment revenues and operating results

The following is an analysis of the Company and its subsidiaries’ revenues and results of operations by reportable segment:

• 57 -

For theyear ended December 31,2023	Manufacturing and trading of printed circuit boards	Manufacturing and trading of printed circuit boards	Assembly and trading of PCB/ lightproducts	Assembly and trading of PCB/ lightproducts		Investment		Others	Adjustment and Elimination	Adjustment and Elimination		Total
		$ 1,919,933 46,441 $ 1,966,374 ($ 746,522) $ 3,771,862 $ 5,023,059 $ 2,963,719 67,011 $ 3,030,730 ($ 426,556) $ 4,180,972 $ 4,558,959		$ 1,565,294 103,947 $ 1,669,241 $ 65,508 $ 3,447,138 $ 605,682 $ 2,131,475 112,871 $ 2,244,346 $ 149,246 $ 3,484,251 $ 725,229		$ - - $ - ($ 1,226) $ 2,176,297 $ 26,072 $ - - $ - ($ 1,159) $ 975,229 $ 1,126		$ 30,712 2,166 $ 32,878 $ 20,326 $ 152,248 $ 5,935 $ 37,521 4,694 $ 42,215 $ 31,520 $ 144,239 $ 8,233		$ - ( 152,554) ($ 152,554) ($ 636) ( $ 283,243) ($ 231,346) $ - ( 184,576) ($ 184,576) ($ 609) ( $ 258,614) ($ 222,836)	$ 3,515,939 - $ 3,515,939 ( $ 659,550 ) 99,086 5,423 963,225 ( 53,295 ) 860,122 1,215,011 379,405 $ 835,606 $ 9,264,302 5,050,071 $ 14,314,373 $ 5,429,402 $ 5,132,715 - $ 5,132,715 ( $ 247,558 ) 81,176 3,455 74,204 ( 37,685 ) 774,758 648,350 137,763 $ 510,587 $ 8,526,077 4,586,869 $ 13,112,946 $ 5,070,711
Revenues from external customers Inter segment revenue Segment revenue Segment income (loss) Interest income Other income Other gains and losses Financial cost Profits of subsidiaries and associates using equity method Profit (loss) before income tax Income tax expense Net profit (loss) for the year Identifiable assets Investments accounted for using the equity method Total assets Total liabilities For theyear ended December 31,2022
Revenues from external customers Inter segment revenue Segment revenue Segment income (loss) Interest income Other income Other gains and losses Financial cost Profits of subsidiaries and associates using equity method Profit (loss) before income tax Income tax expense Net profit (loss) for the year Identifiable assets Investments accounted for using the equity method Total assets Total liabilities

b. Other segment information

Other segment information
Manufacturing and trading of printed circuit boards Assembly and trading of PCB/ light products Others		Depreciation and amortization For the Year Ended December 31 2023 2022 $ 318,459 $ 316,070 50,414 52,229 583 588 $ 369,456 $ 368,887		Amounts of additions to Non-current Assets
				For the Year Ended December 31
		2023 $ 318,459 50,414 583 $ 369,456		2023 $ 213,448 6,667 - $ 220,115	2022 $ 651,862 9,888 - $ 661,750

Non-current assets excluded those classified as financial instruments and deferred tax assets.

c. Revenue from major products and services

The following is an analysis which the continue operating unit of the Company and its subsidiaries’ revenue from its major products and services.

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Manufacture of printed circuit board Assembly and trading of PCB/ light products Others	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2023 $ 1,855,505 1,613,668 46,766 $ 3,515,939	2022 $ 2,962,092 2,129,951 40,672 $ 5,132,715

d. Geographical information

The Company and its subsidiaries operate in principal geographical areas - Asia.

The Corporation and its subsidiaries’ revenue from external customers classify based on the country where the customer is located and information about its non-current assets by location of assets are detailed below:

Taiwan Asia North America Europe Others	Revenues from External Customers For the Year Ended December 31 2023 2022 $ 690,426 $ 685,706 1,003,174 1,613,210 1,213,246 2,182,440 594,938 639,027 14,155 12,332 $ 3,515,939 $ 5,132,715		Non-current Assets	Non-current Assets
			December 31
	2023 $ 690,426 1,003,174 1,213,246 594,938 14,155 $ 3,515,939		2023 $ 2,277,825 213,385 - - - $ 2,491,210	2022 $ 2,464,954 260,644 - - - $ 2,725,598

Non-current assets excluded those classified as financial assets and deferred tax assets.

• e. Information about major customers

Customer A		For the Year Ended December 31	For the Year Ended December 31
		2023 Amount % $ 668,063 19	2022 Amount % $ 921,281 18

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TABLE 1

WUS Printed Circuit Co., Ltd. and Subsidiaries FINANCING PROVIDED TO OTHERS FOR THE YEAR ENDED DECEMBER 31, 2023 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

No	Lender	Borrower	Financial Statement Account	Related Party	Maximum Balance for the Period	Maximum Balance for the Period	**Ending Balance **	**Ending Balance **	Actual Amount Drawn	Actual Amount Drawn	Interest Rate (%)	Nature of Financing	Transaction Amount	Transaction Amount	Reason for Financing	Allowance for Bad Debt	Allowance for Bad Debt	Item	Collateral Value	Collateral Value		Financing Limits for Each Borrowing Company	Financing Company’s Total Financing Limit	Remark
1	Centron	Centron	Other	Y	$	203,211	$	192,803	$	192,803	0.6	Short-term	$	-	Operating	$	-		-	$	-	$ 2,841,532	$ 2,284,532	Note 1 and
	Electronics (HK)	Electronics	receivables									financing			needs									2
	Co., Ltd.	(Kunshan) Co.,	from									-Operating
		Ltd.	related									needs
			parties

Note 1: In accordance with the Procedures for Extending Loans to Others, the total amount of loans extended to others by Centron Electronics (HK) Co., Ltd. and Centron Electronics (Kunshan) Co., Ltd. shall be restricted to 40% of the lender's net worth, while the amount of loans extended to a single entity shall be restricted to 10% of the lender's net worth. The total amount of loans extended and the amount of loans extended to a single entity between foreign subsidiaries in which the Company directly or indirectly holds 100% of the voting rights shall be restricted to 100% of the lender's net worth stated in the lender’s most recent financial statements.

Note 2: Written-off at the preparation of the consolidated financial statements.

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TABLE 2

WUS Printed Circuit Co., Ltd. and Subsidiaries MARKETABLE SECURITIES HELD DECEMBER 31, 2023

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

Holding Company Name	Type and Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account		December 31, 2022	December 31, 2022	December 31, 2022			Remark
				Shares/Units	Carrying Amount		Shares/ Units	Fair Value
The Company WUS Group Holdings Co., Ltd. Yun-Hsu Investment Co., Ltd.	Stock Phoenix Pioneer technology Co., Ltd. Stock Schweizer Electronic AG Fund beneficiary certificate Taishin 1699 Money Market Fund Stock WUS Printed Circuit Co., Ltd.	- - - Parent company	Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - non-current	4,500,000 384,000 136,903.39 1,306,059		$ 78,300 $ 87,816 $ 1,909 $ 50,675	1.51 10.16 - 0.71		$ 78,300 $ 87,816 $ 1,909 $ 50,675	Note

Note: Recognized as treasury share at the preparation of the consolidated financial statements.

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TABLE 3

WUS Printed Circuit Co., Ltd. and Subsidiaries

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

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

Company Name	Related Party	Relationship	Ending Balance	Turnover Rate	Overdue	Overdue	Amounts Received in Subsequent Period	Allowance for Doubtful Accounts Amount
					Amount	Actions Taken
Centron Electronics (HK) Co., Ltd.	Centron Electronics (Kunshan) Co., Ltd.	Subsidiary	$ 192,803	Note 1	$ -	-	$ -	$ -

Note 1: For the purpose of financing, and thus the turnover ratio is not applicable.

Note 2: Written-off at the preparation of the consolidated financial statements.

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TABLE 4

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

WUS Printed Circuit Co., Ltd. and Subsidiaries

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

					Transaction Details	Transaction Details
							% of Total
No.	Company Name	Counterparty	Relationship	Financial Statement	Amount	Payment Terms	Operating
				Account			Revenues or Assets
0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 2 2	WUS Printed Circuit Co., Ltd. WUS Printed Circuit Co., Ltd. WUS Printed Circuit Co., Ltd. WUS Printed Circuit Co., Ltd. WUS Printed Circuit Co., Ltd. WUS Printed Circuit Co., Ltd. WUS Printed Circuit Co., Ltd. WUS Printed Circuit Co., Ltd. WUS Printed Circuit Co., Ltd. Centron Electronics (HK) Co., Ltd Centron Electronics (HK) Co., Ltd Centron Electronics (HK) Co., Ltd Centron Electronics (HK) Co., Ltd Centron Electronics (HK) Co., Ltd Centron Electronics (HK) Co., Ltd Centron Electronics (Kunshan) Co., Ltd. Centron Electronics (Kunshan) Co., Ltd.	Centron Electronics (HK) Co., Ltd Centron Electronics (Kunshan) Co. Centron Electronics (Kunshan) Co. Centron Electronics (Kunshan) Co. Centron Electronics (Kunshan) Co. WUS Energy Technology (Kunshan) Co. WUS Energy Technology (Kunshan) Co. WUS Energy Technology (Kunshan) Co., Ltd. WUS Printed Circuit (Singapore) Pte., Ltd. Centron Electronics (Kunshan) Co. Ltd. Centron Electronics (Kunshan) Co. Ltd. Centron Electronics (Kunshan) Co. Ltd. Centron Electronics (Kunshan) Co., Ltd. WUS Energy Technology (Kunshan) Co. WUS Energy Technology (Kunshan) Co. WUS Energy Technology (Kunshan) Co. WUS Energy Technology (Kunshan) Co.	Parent company to Subsidiary Parent company to Subsidiary Parent company to Subsidiary Parent company to Subsidiary Parent company to Subsidiary Parent company to Subsidiary Parent company to Subsidiary Parent company to Subsidiary Parent company to Subsidiary Subsidiary to Subsidiary Subsidiary to Subsidiary Subsidiary to Subsidiary Subsidiary to Subsidiary Subsidiary to Subsidiary Subsidiary to Subsidiary Subsidiary to Subsidiary Subsidiary to Subsidiary	Sales Sales Purchases Accounts receivables Accounts payable Sales Purchases Accounts payable Commission Sales Purchases Accounts payable Other receivables Sales Accounts receivables Sales Purchases	$ 4,949 29,557 16,902 3,850 5,795 11,935 62,221 23,640 2,166 4,958 5,136 1,660 192,803 4,426 1,051 1,457 8,850	Normal trade terms Normal trade terms No similar transactions can be compared Normal trade terms Normal trade terms Normal trade terms No similar transactions can be compared Normal trade terms Calculated at 1% of net slaes Normal trade terms No similar transactions can be compared Normal trade terms Follow the terms of contract Normal trade terms Normal trade terms Normal trade terms No similar transactions can be compared	- 1 - - - - 2 - - - - - 1 - - - -

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TABLE 5

INFORMATION ON INVESTEES (EXCLUDING INVESTMENTS IN MAINLAND CHINA) FOR THE YEAR ENDED DECEMBER 31, 2023

WUS Printed Circuit Co., Ltd. and Subsidiaries

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

Investor Company	Investee Company	Location	Main Businesses and Products	Original Investment Amount	Original Investment Amount	Balance as of December 31, 2022	Balance as of December 31, 2022	Balance as of December 31, 2022	Net Income (Loss) of the Investee	Investment Gain (Loss)	Remark
				December 31, 2022	December 31, 2021	Number of Shares	Percentage of Ownership (%)	Carrying Amount
The Corporation The Corporation The Corporation The Corporation China Electronic (BVI) Holdings Co., Ltd. WUS Group (BVI) Holdings Co., Ltd. WUS Printed Circuit (Singapore) Pte., Ltd.	WUS Group Holdings Co., Ltd. China Electronic (BVI) Holdings Co., Ltd. WUS Group (BVI) Holdings Co., Ltd. Yun-Hsu Investment Co., Ltd. Centron Electronics (HK) Co., Ltd. WUS Printed Circuit (Singapore) Pte., Ltd. WUS Printed Circuit (Thailand) Co., Ltd. (WUS-Thailand)	Samoa British Virgin Islands British Virgin Islands Taiwan Hong Kong Singapore Thailand	Investment Investment Investment Investment Investment Sales and engineering services of printed circuit boards Manufacture and sales of printed circuit boards	$ 3,004 909,888 11,144 29,900 1,103,817 607,866 24,829	$ 3,004 909,888 11,144 29,900 1,103,817 607,866 -	100,000 27,660,000 400,000 3,737,500 2,629,380 1,983,647 638,000	100.00 100.00 100.00 100.00 100.00 100.00 1.00	$ 7,175,944 2,843,187 113,076 3,961 2,841,532 110,105 24,353	$ 1,746,229 121,711 18,768 16,156 121,787 18,778 ( 48,260 )	$ 1,746,229 121,067 18,768 ( 39 ) 121,787 18,778 ( 483 )	Subsidiary（Note 4） Subsidiary（Note 1 and 4） Subsidiary （Note 4 and 5） Subsidiary （Note 2, 3 and 4） Subsidiary（Note 4） Subsidiary （Note 4 and 6） Associate

Note 1: The difference between book value and net equity is the unrealized gains from upstream transactions.

• Note 2: The difference between book value and net equity is the unrealized losses from the Company’s shares held by Yun-Hsu Investment Co., Ltd.

• Note 3: Book value is the amount after deducting NT$93,017 thousand of the Company’s shares held by Yun-Hsu Investment Co., Ltd.

• Note 4: Written-off at the preparation of the consolidated financial statements.

• Note 5: The initial cost balance of investment in WUS Group (BVI) Holding Co., Ltd was USD 400 thousand.

• Note 6: The initial cost balance of investment in WUS Printed Circuit (Singapore) Pte., Ltd. was USD21,329 thousand (which includes capital reduction to make up for losses of USD19,829 thousand. The amount is not deduced from the balance as the investment amount is not recovered).

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TABLE 6

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

WUS Printed Circuit Co., Ltd. and Subsidiaries

						Accumulated			Accumulated
						Outward			Outward					Accumulated
			Total Amount	Method of		Remittance for	Investment Flows		Remittance for	Net Income	% of Ownership		Carrying	Repatriation of
Investee Company	Main Businesses and Pdt		of Paid-in	Investment		Investments f Ti			Investments f Ti	(Loss) of the	of Direct or	Investment Gi L	Amount as of Db 31	Investment I f	Remark
	roucs		Capital	(Note	1)	rom awan as of January 1, 2023			rom awan as of December 31, 2023	Investee	Indirect Investment	an (oss)	ecemer , 2023	ncome as o December 31, 2023
							Outward	Outward
Wus Printed Circuit (Kunshan) Ltd. Centron Electronics (Kunshan) Co., Ltd. WUS Energy Technology (Kunshan) Co., Ltd.	Manufacture and Sales of Printed Circuit boards. Assembly and Sales of peripheral equipment such as electronic products. Photoelectronic application products research, production and sales.		$ 8,283,229 738,664 125,398	2 2 3		$ - 411,870 -	$ - - -	$ - - -	$ - 411,870 -	$ 6,806,869 116,175 1,097	11.98 100.00 100.00	$ 860,604 116,175 1,097	$ 5,025,718 2,648,434 197,916	$ 7,910,019 141,456 -	Note 2, 5 and 6 Note3, 7 and 9 Note 3 and 9
Investor Company		Accumulated Outward Remittance for Investments in Mainland China as of December 31, 2022 (Note 8)			Investment Amount Authorized by the Investment Commission, MOEA			Upper Limit on the Amount of Investments Stipulated by the Investment Commission, MOEA (Note 4)
WUS Printed Circuit Co., Ltd.		$ 783,802			$ 783,802			$5,330,983

• Note 1: Investment methods are classified into the following three categories:

• Direct investment in a company in mainland China.

• Investing through companies in a third region.

• Others.

• Note 2: The basis for investment income (loss) recognition is from the financial statements audited and attested by international accounting firm which has cooperative relationship with accounting firm in R.O.C.

Note 3: The basis for investment income (loss) recognition is from the financial statements audited and attested by R.O.C. parent company’s CPA.

• Note 4: Calculated based on the “Regulations Governing the Examination of Investment or Technical Cooperation in Mainland China” issued by Investment Commission, MOEA on August 29, 2008.

• Note 5: As the amount of accumulated investment profit remitted back exceeds the initial investment amount, the accumulated investment amount is NT$0.

• Note 6: As of December 31, 2023, the initial investment cost of WUS Group Holdings Co., Ltd. in Wus Printed Circuit (Kunshan) Co., Ltd. was USD9,072 thousand, and the investment profit remitted back amounted to NT$7,910,019 thousand (including USD107,667 thousand and RMB968,556 thousand).

• Note 7: As of December 31, 2023, the initial investment cost of China Electronic (BVI) Holdings Co., Ltd. in Centron Electronics (Kunshan) Co., Ltd. was USD22,500 thousand, and the investment profit remitted back amounted to USD10,802 thousand. China Electronic (BVI) Holdings Co., Ltd. remitted USD5,880 thousand through capital reduction and USD4,800 thousand of earnings back to the Company.

• Note 8: The difference between the ending balance of accumulated investment from Taiwan to mainland China and the approved amount by the Investment Commission MOEA is due to the amount of USD11,200 thousand from the transfer of shares in subsidiaries in China that has not yet been remitted back from a third country.

• Note 9: Written-off at the preparation of the consolidated financial statements.

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TABLE 7

WUS Printed Circuit Co., Ltd. Information for Major Shareholders DECEMBER 31, 2023

Name of the Major Shareholder	Shares	Shares
	Number of Shares Owned	Number of Shares Owned
Jay Nan Hou Li Co., Ltd. HSBC: Banque Pictet & Cie SA SCBL: LGT Bank AG HSIAO,HAN-SEN Kang Chung Lung Investment Co., Ltd.	23,831,693 15,345,414 13,276,500 10,031,000 9,373,111	13.04 8.39 7.26 5.48 5.12

• Note 1: The information of major shareholders presented in this table is provided by the Taiwan Depository & Clearing Corporation based on the number of ordinary shares and preference 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 financial statements may differ from the actual number of shares that have been issued without physical registration because of different preparation basis.

• Note 2: If a shareholder delivers the shareholdings to the trust, the above information will be disclosed by the individual truster who opened the trust account. For shareholders who declare insider shareholdings with ownership greater than 10% in accordance with the Security and Exchange Act, the shareholdings include shares held by shareholders and those delivered to the trust over which shareholders have rights to determine the use of trust property. For information relating to insider shareholding declaration, refer to Market Observation Post System.

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